2022.11.15 Council Meeting Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: Nov. 10, 2022
City Council Meeting Schedule
Tuesday, Nov. 15, 2022
Time Meeting Location
6:15 p.m.
City Council work session to discuss:
1. Crystal Business Association.
2. Interim city manager monthly check-in.
3. Constituent issues update.
4. New business.
5. Announcements.
Council Chambers/
Zoom
6:45 p.m. City Council special meeting to canvass the results of the 2022
general election
Council
Chambers/Zoom
7 p.m. City Council meeting Council Chambers/
Zoom
Immediately
following the
City Council
meeting
Economic Development Authority (EDA) meeting Council
Chambers/Zoom
Immediately
following the
EDA meeting
Continuation of City Council work session, if necessary Council Chambers/
Zoom
The public may attend the meetings via Zoom by connecting to them through one of the methods
identified below.
Topic: Crystal City Council work session, special City Council meeting, regular City Council meeting, and
continuation of City Council work session, if necessary.
Time: Nov. 15, 2022 6:15 p.m. Central Time (US and Canada)
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4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: Nov. 10, 2022
City Council Work Session Agenda
Tuesday, Nov. 15, 2022 at 6:15 p.m.
Council Chambers/Zoom
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter,
the work session of the Crystal City Council was held on Tuesday, Nov. 15, 2022 at ______ p.m. in
the Council Chambers at City Hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. If the agenda
items are not completed in time for the special City Council meeting at 6:45 p.m., the work session
will be continued and resumed immediately following the Economic Development Authority
meeting. The public may attend the meeting via Zoom by connecting to it through one of the
methods identified on the City Council Meeting Schedule for Tuesday, Nov. 15, 2022.
I. Attendance
Council members Staff
____ Banks ____ Therres
____ Budziszewski ____ Gilchrist
____ Cummings ____ Elholm
____ Kiser ____ Larson
____ LaRoche ____ Ray
____ Parsons ____ Revering
____ Adams ____ Sutter
____ Serres
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1. Crystal Business Association.
2. Interim city manager monthly check-in.
3. Constituent issues.*
4. New business.*
5. Announcements.*
III. Adjournment
The work session adjourned at ______ p.m.
* Denotes no supporting information included in the packet.
Auxiliary aids are available upon request to individuals with disabilities by calling the city clerk at
(763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
INTERIM CITY MANAGER
MONTHLY CHECK IN – NOVEMBER 2022
Objective 1 – Strategic planning for continued implementation of Council
priorities:
o Thriving Business Community
Open To Business assistance available
Community Development staff a resource for local business
community
Community Development staff continuing to work with
developers regarding redevelopment opportunities
o Strong Neighborhoods
Code enforcement – on-going
Continued implementation of Master Parks System Plan
improvements
Home improvement loans/rebates available through CEE-
ongoing
o Sound fiscal policies and practices
Preliminary 2023 budget and levies approved 9/6/22; public
comment received 10/3/22
Updated long term plan (2023 – 2032) approved 10/22
Utility rate study reviewed 10/13/22
o Welcoming and inclusive community
Inclusion & Diversity Commissioners appointed; first meeting
11/2/22
Objective 2 – Work-life balance
Objective 3 – Monitor difficult conversations regarding Council effectiveness
City Manager Interviews will begin on November 16, 2022
Staff will begin new council welcome and orientation process
4141 Douglas Drive North • Crystal, Minnesota 55422 - 1696
Tel: (763) 531 - 1000 • Fax : (763) 531 - 1188 • www.crystalmn.gov
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: Nov. 10, 2022
City Council Special Meeting Agenda
Wednesday, Nov. 16, 2022
6:45 p.m.
Council Chambers/Zoom Meeting
1. Call to Order, Roll Call and Pledge of Allegiance
2. Approval of Agenda
The Council will consider approval of the agenda.
3. Regular Agenda
3.1 The Council will consider a resolution canvassing the election returns and declaring the
results of the 2022 general municipal election for the offices of Council Member Ward 1,
Council Member Ward 2 and Council Member Section II.*
4. Adjournment
* Denotes no supporting information included in the packet.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: Nov. 10, 2022
CRYSTAL CITY COUNCIL
NOTICE OF NOV. 15, 2022 SPECIAL COUNCIL MEETING
NOTICE IS HEREBY GIVEN that the City Council of the City of Crystal will hold a special meeting to
canvass the results of the 2022 general municipal election on Tuesday, Nov. 15, 2022 at 6:45 p.m. at
Crystal City Hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom.
The public may attend the meeting via Zoom by connecting to it through one of the methods
identified below:
Topic: Special City Council Meeting
Time: Nov. 15, 2022, 6:45 p.m. Central Time (US and Canada)
Join Zoom Meeting
https://us02web.zoom.us/j/82365744824?pwd=UDJleGJsK24zblQwdEQ3NW1Rak5KZz09
Meeting ID: 823 6574 4824
Passcode: 414141
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Dial by your location
+1 309 205 3325 US
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+1 646 931 3860 US
+1 929 205 6099 US (New York)
+1 301 715 8592 US (Washington DC)
+1 669 444 9171 US
+1 669 900 6833 US (San Jose)
+1 689 278 1000 US
+1 719 359 4580 US
+1 253 215 8782 US (Tacoma)
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Auxiliary aids are available upon request to individuals with disabilities by calling the City Clerk at
(763) 531-1145 at least 96 hours in advance. TTY users may call Minnesota Relay at 711 or 1-800-627-3529.
Page 1 of 3
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: Nov. 10, 2022
City Council Meeting Agenda
Tuesday, Nov. 15, 2022
7 p.m.
Council Chambers/Zoom Meeting
The interim city manager’s comments are bolded.
1. Call to Order, Roll Call and Pledge of Allegiance
2. Approval of Agenda
The Council will consider approval of the agenda.
3. Proclamation
3.1 Mayor Adams will proclaim Nov. 26, 2022 as Small Business Saturday in the City of Crystal.
4. Consent Agenda
The Council will consider the following items, which are routine and non-controversial in nature, in a
single motion:
4.1 Approval of the minutes from the following meetings:
a. The City Council regular work session on Oct. 13, 2022.
b. The City Council regular meeting on Oct. 18, 2022.
c. The City Council regular work session on Oct. 18, 2022.
d. The City Council special meeting on Nov. 1, 2022.
4.2 Approval of the list of license applications submitted by the city clerk to the City Council, a list
that is on file in the office of the city clerk.
4.3 Adoption of a resolution accepting donations.
4.4 Adoption of a resolution authorizing a grant application to the Hennepin Youth Sports program
for improvements at Welcome Park.
4.5 Adoption of a resolution making the city’s annual insurance elections.
5. Open Forum
(The City Council appreciates hearing from citizens about items of concern and desires to set aside
time during each meeting for Open Forum. To provide ample opportunity for all, speaking time is
limited to three minutes and topic discussion is limited to ten minutes. The Mayor may, as presiding
officer, extend the total time allowed for a topic. By rule, no action may be taken on any item brought
before the Council during Open Forum. The Council may place items discussed during Open Forum
onto subsequent council meeting agendas.)
Page 2 of 3
6. Regular Agenda
6.1 The Council will consider approval of disbursements over $25,000 submitted by the finance
department to the City Council, a list that is on file in the office of the finance department.
Recommend approval of disbursements over $25,000.
6.2 The Council will consider civil penalties for violation of liquor license regulations by Cousins, LLC
d/b/a Adair Liquor located at 6001 42nd Ave. N.
The city clerk received notice from the State Department of Public Safety, Alcohol and
Gambling Enforcement Division, that Adair Liquor had violated liquor license regulations by
providing alcoholic beverages to another liquor store location for resale of the product and
engaged in an unlicensed wholesale transaction. This is a third liquor violation for Adair Liquor
and according to the City Code and Resolution No. 2018-160, the City Council may impose a
civil penalty of $2,000 and a 10-day license suspension. Prior to acting on the civil penalties,
the City Council should hear any comments from the representative(s) of Adair Liquor,
including whether they admit to the violation.
6.3 The Council will consider a resolution awarding the contract for the pedestrian bridge in Bassett
Creek Park.
The long term plan includes funds to replace the pedestrian bridge in Bassesst Creek Park.
Quotes have been received and it is recommended to approve working with Art Thureson, Inc.
to provide a prefrabricated trus bridge for Bassett Creek Park.
6.4 The Council will consider a resolution approving the purchase of light fixtures and controls for
the pickleball courts at Becker Park.
The long term plan includes funds to replace lighting for the basketball and pickleball courts in
Becker Park. Through the Sourcewell Cooperative Purchasing Program we are able to work
with Musco Sports Lighting, LLC to provide an LED lighting system. Recommend approval.
6.5 The Council will consider a resolution approving the purchase of body cameras.
The current body cameras that were purchased in 2017 are in need of replacement/upgrades
due to technology. The police equipment revolving fund has funds to cover the expenditure.
Recommend approval.
6.6 The Council will consider a labor agreement with LELS, Local 44 (police officers) for 2023 – 2025.
Earlier this year staff and the city’s labor attorney met with the Council to discuss future
contracts. Settlements have been approved with Local 49 for 2022-2023 as well as wage and
insurance adjustments for non-represented employees. We have successfully negotiated a
three year contract matching the 2023 wage and insurance adjustments for Local 49 and non-
represented employees and a market rate adjustment to keep our police officers competitive
in our immediate market. The next two years continue the 2023 wage adjustment of 3.25%
and include reopeners for insurance. The contract is consistent with the updated
compensation program approved by the Council in October.
Page 3 of 3
6.7 The Council will consider a labor agreement with LELS, Local 56 (police supervisors) for 2023 –
2025.
Earlier this year staff and the city’s labor attorney met with the Council to discuss future
contracts. Settlements have been approved with Local 49 for 2022-2023 as well as wage and
insurance adjustments for non-represented employees. We have successfully negotiated a
three-year contract matching the 2023 wage and insurance adjustments for Local 49 and non-
represented employees and a market rate adjustment to keep our police supervisors
competitive in our immediate market. The next two years continue the 2023 wage adjustment
of 3.25% and include reopeners for insurance. The contract is consistent with the updated
compensation program approved by the Council in October.
6.8 The Council will consider a resolution regarding the petition related to Ordinance No. 2022-06.
The City received a referendum petition regarding Ordinance No. 2022-06. The council will
need to either repeal the ordinance or re-affirm the ordinance by resoulution.
7. Announcements
a. The City Council will hold a special meeting on Wednesday, Nov. 16 at 4 p.m. in the Council
Chambers at City Hall and via Zoom.
b. The next regular City Council meeting is Tuesday, Dec. 6 at 7 p.m. in the Council Chambers at City
Hall and via Zoom.
c. City Council meetings and work sessions are open to the public. Current and previous meetings
are available for viewing and listening at www.crystalmn.gov.
8. Adjournment
Have a great weekend; see you at Tuesday’s meeting.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
SMALL BUSINESS SATURDAY
PROCLAMATION
WHEREAS, creating a thriving business climate is a top priority of the Crystal City Council; and
WHEREAS, the City of Crystal celebrates our local small businesses and the contributions
they make to the local economy and community; and
WHEREAS, for many local residents the Thanksgiving holiday kicks off a season of gathering,
dining, shopping, and experiencing arts and culture, and consumers know that supporting
small, independently-owned businesses has positive social, economic, and environmental
impacts; and
WHEREAS, the City of Crystal has partnered with Hennepin County and the Hennepin County
Housing and Redevelopment Authority to launch the multijurisdictional Love Local campaign
which encourages residents to support local businesses that create jobs, boost the local
economy, and make our communities vibrant and livable; and
WHEREAS, public and private organizations across the county have endorsed the Saturday
after Thanksgiving as Small Business Saturday.
NOW, THEREFORE, I, Jim Adams, Mayor of the City of Crystal, do hereby proclaim
November 26, 2022 as Small Business Saturday in the City of Crystal and urge the residents
of our community to support small businesses and merchants on Small Business Saturday and
throughout the year.
Proclaimed this 15th day of November, 2022.
________________________________
Jim Adams, Mayor
3.1
Crystal City Council work session minutes Oct. 13, 2022
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the
regular work session of the Crystal City Council was held at 6:30 p.m. on Oct. 13, 2022 in the Council
Chambers at City Hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. Mayor Adams called the
meeting to order.
I.Attendance
The city clerk recorded the attendance for city council members and staff:
Council members present: Kiser, LaRoche, Parsons, Adams, Banks, Budziszewski and Cummings.
City staff present: City Manager A. Norris, Assistant City Manager K. Therres, Finance Director J.
McGann, Public Works Director M. Ray, Police Chief S. Revering and Community Development
Director J. Sutter.
Also present were Blue Line Extension representatives Nick Landwer and Christine Beckwith from
Metro Transit.
II.Agenda
The Council and staff discussed the following agenda items:
1. 2023 – 2027 utility rate study.
2. 2023 – 2032 long term plan review.
2. 2023 – 2024 fee schedule review.
3.Updated Blue Line Extension concept plans and traffic information.
III.Adjournment
The work session adjourned at 8 p.m.
________________________________
Jim Adams, Mayor
ATTEST:
Chrissy Serres, City Clerk
4.1(a)
Crystal City Council meeting minutes Oct. 18, 2022
Page 1 of 5
1.Call to Order
Pursuant to due call and notice thereof, the regular meeting of the Crystal City Council was held on
Oct. 18, 2022 at 7 p.m. in the Council Chambers at City Hall, 4141 Douglas Dr. N. in Crystal, MN and
via Zoom. Mayor Adams called the meeting to order.
Roll Call
Mayor Adams asked the city clerk to call the roll for elected officials. Upon roll call, the following
attendance was recorded:
Council members present: LaRoche, Parsons, Adams, Banks, Budziszewski (arrived at 7:24 p.m.),
Cummings (arrived at 7:36 p.m.) and Kiser.
City staff present: City Manager A. Norris, Assistant City Manager K. Therres, City Attorney T.
Gilchrist, Recreation Director J. Elholm, West Metro Fire-Rescue District Chief S. Larson, Public
Works Director M. Ray, Police Chief S. Revering, Community Development Director J. Sutter and
City Clerk C. Serres.
Finance Director J. McGann was present via Zoom.
Pledge of Allegiance
Mayor Adams led the Council and audience in the Pledge of Allegiance.
2.Approval of Agenda
The Council considered approval of the agenda.
Moved by Council Member LaRoche and seconded by Council Member Banks to approve the
agenda.
Motion carried.
3.Consent Agenda
The Council considered the following items, which are routine and non-controversial in nature, in a
single motion:
3.1 Approval of the minutes from the following meetings:
3.1 The City Council meeting on Oct. 3, 2022.
3.2 The City Council regular work session on Oct. 3, 2022.
3.2 Approval of the list of license applications submitted by the city clerk to the City Council, a list
that is on file in the office of the city clerk.
3.3 Adoption of Res. No. 2022-94, accepting donations.
3.4 Appointment of Kim Therres, assistant city manager, as interim city manager.
3.5 Adoption of Res. No. 2022-95, appointing interim city manager to the West Metro Fire-Rescue
District Board of Directors, Hennepin Recycling Group Board, Northwest Suburbs Cable
Communications Commission and CCX Media Board.
3.6 Approval of the 2023 regular City Council meeting and work session schedule.
3.7 Adoption of Res. No. 2022-96, authorizing a grant application for contamination clean-up at
3401-3415 Douglas Dr. N.
4.1(b)
Crystal City Council meeting minutes Oct. 18, 2022
Page 2 of 5
3.8 Adoption of Res. No. 2022-97, supporting Three Rivers Park District French Regional Park
improvements.
3.9 Adoption of Res. No. 2022-98, vacating assessments on Metropolitan Airports Commission
properties at 5800 Airport Road and 5900 Lakeland Ave. N.
Moved by Council Member Banks and seconded by Council Member Kiser to approve the consent
agenda.
Motion carried.
4. Open Forum
The following persons addressed the Council:
• David Bissen, 6603 36th Ave. N., regarding the petition related to Ordinance No. 2022-06.
• Steve Gardner, 4801 Maryland Ave. N., expressed his concerns regarding property taxes.
5. Public Hearings
5.1 Mayor Adams announced the purpose of the public hearing:
To receive comment, and Council consideration of a resolution approving the assessment roll
for the 2022 delinquent accounts.
Finance Director Jean McGann addressed the Council.
There being no one wishing to appear before the Council to give testimony, Mayor Adams
declared the public hearing closed.
Moved by Council Member Banks and seconded by Council Member Kiser to adopt the
following resolution:
RESOLUTION NO. 2022 – 99
RESOLUTION ADOPTING THE ASSESSMENT ROLL
FOR 2022 DELINQUENT ACCOUNTS
Voting aye: LaRoche, Parsons, Adams, Banks and Kiser.
Absent, not voting: Budziszewski and Cummings.
Motion carried, resolution declared adopted.
6. Regular Agenda
6.1 The Council considered approval of disbursements over $25,000 submitted by the finance
department to the City Council, a list that is on file in the office of the finance department.
Moved by Council Member LaRoche and seconded by Council Member Banks to approve the
list of disbursements over $25,000.
Voting aye: LaRoche, Parsons, Adams, Banks and Kiser.
Absent, not voting: Budziszewski and Cummings.
Motion carried.
4.1(b)
Crystal City Council meeting minutes Oct. 18, 2022
Page 3 of 5
6.2 The Council considered a resolution approving a sign variance for Crystal Vision Clinic at 5730
Bottineau Boulevard.
Community Development Director John Sutter addressed the Council.
Moved by Council Member Banks and seconded by Council Member Kiser to adopt the
following resolution:
RESOLUTION NO. 2022 – 100
RESOLUTION APPROVING A VARIANCE FOR 5730 BOTTINEAU BOULEVARD
Voting aye: LaRoche, Parsons, Adams, Banks and Kiser.
Absent, not voting: Budziszewski and Cummings.
Motion carried, resolution declared adopted.
6.3 The Council considered the 2023 – 2027 utility rate study.
Finance Director Jean McGann addressed the Council.
Moved by Council Member LaRoche and seconded by Council Member Parsons to accept the
2023 – 2027 utility rate study.
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski and Kiser.
Absent, not voting: Cummings.
Motion carried.
6.4 The Council considered the 2023 – 2032 long term plan.
Finance Director Jean McGann addressed the Council.
Moved by Council Member Budziszewski and seconded by Council Member Banks to accept the
2023 – 2032 long term plan.
By roll call voting aye: Kiser, Parsons, Adams, Banks, Budziszewski and Cummings.
Voting nay: LaRoche.
Motion carried.
6.5 The Council considered a resolution approving internal loans for the police station project.
Finance Director Jean McGann addressed the Council.
Moved by Council Member Banks and seconded by Council Member LaRoche to adopt the
following resolution:
RESOLUTION NO. 2022 – 101
RESOLUTION APPROVING INTERNAL LOANS FROM THE STREET
IMPROVEMENT FUND, POLICE REVOLVING FUND, WATER FUND AND STORM
WATER FUND TO THE BUILDING FUND
4.1(b)
Crystal City Council meeting minutes Oct. 18, 2022
Page 4 of 5
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski, Cummings and Kiser.
Motion carried, resolution declared adopted.
6.6 The Council considered the 2023 fee schedule.
Finance Director Jean McGann addressed the Council.
Moved by Council Member Budziszewski and seconded by Council Member Kiser to adopt the
2023 fee schedule.
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski, Cummings and Kiser.
Motion carried.
6.7 The Council considered an agreement with Kennedy & Graven for civil legal services for 2023 –
2024.
City Manager Anne Norris addressed the Council.
Moved by Council Member Budziszewski and seconded by Council Member Cummings to
approve the agreement with Kennedy & Graven for civil legal services for 2023 – 2024.
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski, Cummings and Kiser.
Motion carried.
6.8 The Council considered an agreement with Eckberg Lammers for prosecuting legal services for
2023 – 2024.
Police Chief Stephanie Revering addressed the Council.
Moved by Council Member LaRoche and seconded by Council Member Banks to approve the
agreement with Eckberg Lammers for prosecuting legal services for 2023 – 2024.
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski, Cummings and Kiser.
Motion carried.
6.9 The Council considered a Memorandum of Understanding (MOU) with the International Union
of Operating Engineers (IUOE), Local 49, for the 2023 insurance contribution.
Assistant City Manager Kim Therres addressed the Council.
Moved by Council Member Banks and seconded by Council Member Cummings to approve the
MOU with the IUOE, Local 49, for the 2023 insurance contribution.
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski, Cummings and Kiser.
Motion carried.
6.10 The Council considered the 2023 wage adjustment and insurance contribution for non-
represented employees.
4.1(b)
Crystal City Council meeting minutes Oct. 18, 2022
Page 5 of 5
Assistant City Manager Kim Therres addressed the Council.
Moved by Council Member Banks and seconded by Council Member Budziszewski to approve
the 2023 wage adjustment and insurance contribution for non-represented employees.
Voting aye: LaRoche, Parsons, Adams, Banks, Budziszewski, Cummings and Kiser.
Motion carried.
7. Announcements
The Council and staff made announcements about upcoming events.
8. Adjournment
Moved by Council Member Budziszewski and seconded by Council Member LaRoche to adjourn the
meeting.
Motion carried.
The meeting adjourned at 7:55 p.m.
____________________________________
Jim Adams, Mayor
ATTEST:
_____________________________________
Chrissy Serres, City Clerk
4.1(b)
Crystal City Council work session minutes Oct. 18, 2022
Page 1 of 2
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the
regular work session of the Crystal City Council was held at 6:24 p.m. on Oct. 18, 2022 in the Council
Chambers at City Hall, 4141 Douglas Dr. N., Crystal, MN and via Zoom. Mayor Adams called the
meeting to order.
I.Attendance
The city clerk recorded the attendance for city council members and staff:
Council members present: LaRoche, Parsons, Adams, Banks, Budziszewski (arrived at 7:24 p.m.),
Cummings (arrived at 7:36 p.m.) and Kiser.
City staff present: City Manager A. Norris, Assistant City Manager K. Therres, City Attorney T.
Gilchrist, Recreation Director J. Elholm, West Metro Fire-Rescue District Chief S. Larson, Public
Works Director M. Ray, Police Chief S. Revering, Community Development Director J. Sutter and
City Clerk C. Serres.
Also present were Three Rivers Park District representatives Jonathan Vlaming and Danny
McCullough.
II.Agenda
The Council and staff discussed the following agenda items:
The Blue Line Extension Community Advisory Committee candidate interview was postponed to a
future work session.
1.Canadian Pacific (CP) Rail Regional Trail update.
Mayor Adams continued the work session to resume immediately after the Economic
Development Authority meeting.
Mayor Adams resumed the work session at 6:46 p.m. The Council and staff discussed the
following agenda items:
2.West Metro Fire-Rescue District quarterly update.
3.Police quarterly update.
Mayor Adams continued the work session to resume immediately after the City Council meeting.
Mayor Adams resumed the work session at 7:56 p.m. The Council and staff discussed the
following remaining agenda items:
4.Bassett Creek Park improvements.
5.City manager monthly check-in.
6.Constituent issues update.
7.New business.
8.Announcements.
III.Adjournment
The work session adjourned at 8:26 p.m.
4.1(c)
Crystal City Council work session minutes Oct. 18, 2022
Page 2 of 2
________________________________
Jim Adams, Mayor
ATTEST:
Chrissy Serres, City Clerk
4.1(c)
Crystal City Council special meeting minutes Nov. 1, 2022
Page 1 of 2
1.Call to Order
Pursuant to due call and notice thereof, the special meeting of the Crystal City Council was held on
Nov. 1, 2022 at 6:32 p.m. in the Council Chambers at City Hall, 4141 Douglas Dr. N. in Crystal, MN
and via Zoom. Mayor Adams called the meeting to order.
Roll Call
Mayor Adams asked the city clerk to call the roll for elected officials. Upon roll call, the following
attendance was recorded:
Council members present: Parsons, Adams, Budziszewski, Cummings, Kiser and LaRoche.
Council Member Banks observed the meeting remotely via Zoom, but did not participate as a
voting member.
City staff present: Interim City Manager K. Therres, West Metro Fire-Rescue District Chief S. Larson,
Police Chief S. Revering and City Clerk C. Serres.
Also present was DDA Human Resources, Inc. consultant Mark Casey.
Pledge of Allegiance
Mayor Adams led the Council and audience in the Pledge of Allegiance.
2.Approval of Agenda
The Council considered approval of the agenda.
Moved by Council Member LaRoche and seconded by Council Member Kiser to approve the
agenda.
Motion carried.
3.Regular Agenda
3.1 The Council considered selection of city manager finalists.
Moved by Council Member LaRoche and seconded by Council Member Parsons to select four
city manager finalists (candidates #1, #3, #7 and #10).
Voting aye: Parsons, Adams, Budziszewski, Cummings, Kiser and LaRoche.
Not voting: Banks.
Motion carried.
Moved by Mayor Adams and seconded by Council Member Parsons to approve travel
reimbursement expenses up to $200 for out-of-state city manager finalist candidate(s).
Voting aye: Parsons, Adams, Budziszewski, Cummings, Kiser and LaRoche.
Not voting: Banks.
Motion carried.
4.Adjournment
Moved by Council Member Budziszewski and seconded by Council Member LaRoche to adjourn the
meeting.
Motion carried.
The meeting adjourned at 7:02 p.m.
4.1(d)
Crystal City Council special meeting minutes Nov. 1, 2022
Page 2 of 2
____________________________________
Jim Adams, Mayor
ATTEST:
_____________________________________
Chrissy Serres, City Clerk
4.1(d)
Page 1 of 2
City of Crystal Council Meeting
Nov. 15, 2022
Applications for City License
Rental – New
4100 Brunswick Ave. N. – Reill Properties
2737 Douglas Dr. N. – Reese Pfeiffer (Conditional)
5116 Edgewood Ave. N. – Shehla Khan (Conditional)
5237 Florida Ave. N. – Uppal Group (Conditional)
5817 Regent Ave. N. – Lien Lam (Conditional)
4724 Xenia Ave. N. – Lien Lam (Conditional)
Rental – Renewal
3312 Adair Ave. N. – Scot Sorenson (Conditional)
4425 Adair Ave. N. – Adair Properties (Conditional)
5656 Adair Ave. N. – Berkley Group
4401 Brunswick Ave. N. – Jim and Rebekah Archer
3608 Colorado Ave. N. – Invitation Homes
6720 Corvallis Ave. N. – Leslie Oyster
3157 Douglas Dr. N. – Drew Kabanuk (Conditional)
3219 Douglas Dr. N. – Robert Glorvick (Conditional)
3237-3241 Douglas Dr. N. – Reese Pfeiffer (Conditional)
3317 Douglas Dr. N. – Four Seasons (Conditional)
3335 Douglas Dr. N. – Drew Kabanuk (Conditional)
3616-3618 Douglas Dr. N. – Reginald Orth (Conditional)
5450-5500 Douglas Dr. N. – Calibre Chase (Conditional)
5830 Elmhurst Ave. N. – John Sexter
5000 Fairview Ave. N. – Faye Case (Conditional)
4237 Georgia Ave. N. – Abdul Kunert (Conditional)
5102-5104 Hampshire Ave. N. – Brian Code
5936 Kentucky Ave. N. – Aaron Voreis
4832 Louisiana Ave. N. – Aquila Properties LLC.
8427 Northern Dr. – Invitation Homes
5641-5643 Perry Ave. N. – Tyler Heitmann (Conditional)
5849 Quail Ave. N. – Invitation Homes (Conditional)
5909 Quail Ave. N. – Adam Hardy (Conditional)
3532 Regent Ave. N. – Christian Haro (Conditional)
5809 Rhode Island Ave. N. – Adam Hardy (Conditional)
5233 Unity Ct. N. – Steve Neuman
7225 Valley Pl. N. – Bradley Rosenberger (Conditional)
3100 Virginia Ave. N. – Todd Wusands (Conditional)
3108 Virginia Ave. N. – MJA Capital Mgt. LLC. (Conditional)
4725 Welcome Ave. N. – MCA Homes LLC. (Conditional)
5517 Welcome Ave. N. – NB Estates
5233 Xenia Ave. N. – SFR II Borrower 2021-3 LLC. (Conditional)
5568-5570 Xenia Ave. N. – Naresh Uppal (Conditional)
5714 Yates Ave. N. – Brian and Jenny Leonard (Conditional)
6400 29th Ave. N. – Brian Gieseke
4.2
Page 2 of 2
Rental – Renewal cont’d
6205 32nd Ave. N. – Suwah Tobah
8201 35th Ave. N. – Chen Zhou
6610 42nd Ave. N. – Robert Hovland
6928 45th Pl. N. – HPA II Borrower (Conditional)
5123 49th Ave. N. – Reese Pfeiffer (Conditional)
5328 49th Ave. N. – Invitation Homes
6820 50th Ave. N. – Peter Gross (Conditional)
6315 55th Ave. N. – Calibre Chase (Conditional)
5101 56th Ave. N. – Community Involvement Programs (Conditional)
Solicitor
Bradley Kaye for Legacy Restoration, 8416 Hemlock Ln. N., Maple Grove, MN 55369 (door-to-
door offering free exterior home inspections)
Tree Trimmer
O’Brien’s Contracting, 9927 Garden Ln., Rogers, MN 55374
Schroeder Outdoor Services, 5346 Lakeside Ave. N., Crystal, MN 55429
4.2
CITY OF CRYSTAL
RESOLUTION NO. 2022 -
RESOLUTION ACCEPTING DONATIONS FROM
RICHARD HENDRICKSON AND VFW POST 494
WHEREAS, Minnesota Statute §465.03 requires that all gifts and donations of real or personal
property be accepted only with the adoption of a resolution; and
WHEREAS, said donations must be accepted by a resolution adopted by the City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Crystal to accept the
following donations:
Donors Purpose Amount
Richard Hendrickson General park fund $100
VFW Post 494 Police Department statue $22,000
VFW Post 494 Recreation scholarship fund $5,000
And BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the above-named
for their generous donations.
Dated: Nov. 15, 2022
By: __________________________
Jim Adams, Mayor
ATTEST:
__________________________
Christina Serres, City Clerk
4.3
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Memorandum
DATE: November 1, 2022
TO: Mayor and City Council
Kim Therres, Acting City Manager
FROM: John Elholm, Recreation Director
SUBJECT: Grant Application to the Hennepin County Youth Sports Program
The City of Crystal developed a park and recreation system plan in 2017 that identifies park
improvement projects throughout the city. One focus area of the system plan was Welcome
Park; a community park in Crystal that draws users from beyond the immediate
neighborhood. The park is active year-round; with a play area, lighted softball field,
basketball court and other features available in the summer and a warming house and
skating rink available in the winter.
In 2023, capital improvements are planned to improve accessibility in the park; including
replacement of the play area (built 1997) with one that has accessible routes to play
features, and the addition of outdoor fitness equipment with an accessible surface adjacent
to the play area. The project also includes accessible site furnishings and trails or sidewalks
to connect amenities.
Hennepin County offers grants through the Hennepin Youth Sports Program to help develop
sports or recreational facilities. For the Welcome Park project; the proposed budget is
$425,000 from the city and $150,000 from the county for a $575,000 project. The city funds
are included in the 2023 capital plan.
A resolution of support from the Crystal City Council is a requirement of the application.
4.4
RESOLUTION NO. 2022 - ______
AUTHORIZING A FACILITY GRANT APPLICATION TO THE
HENNEPIN YOUTH SPORTS PROGRAM TO HELP FUND IMPROVEMENTS
AT WELCOME PARK
WHEREAS, the Hennepin County Board of Commissioners, via the Hennepin Youth Sports
Program, provides for capital funds to assist local government units of Hennepin County for the
development of sports or recreational facilities, and
WHEREAS, the City of Crystal, hereinafter LGU, desires to develop facilities to improve
accessibility in Welcome Park, including a more accessible play area, fitness pod and sidewalks.
NOW, THEREFORE BE IT RESOLVED BY THE City Council of the City of Crystal:
I. The estimate of the total cost of developing PROJECT shall be $575,000. The LGU is
requesting $150,000 from the Hennepin Youth Sports Program and will assume responsibility
for providing matching funds of $425,000.
II. LGU is the owner of the property where the PROJECT is located. The LGU will own the
property where PROJECT is located for at least the functional life of the facility, which is
estimated to be 20 years. The PROJECT may not be converted to non-public or non-recreational
uses within this time period without the approval of Hennepin County.
III. LGU agrees to assume one hundred (100) percent of operational and maintenance costs for
PROJECT. LGU will operate PROJECT for its intended purpose as stated in the PROJECT
application for the functional life of the facility.
IV. LGU agrees to enter into necessary and required agreements with Hennepin County for the
specific purpose of developing PROJECT and managing its long-term operation.
V. That John Elholm, Recreation Director, is authorized and directed to execute the application
for the Hennepin Youth Sports Program grant.
CERTIFICATION
I hereby certify that the foregoing resolution is a true and correct copy of the resolution presented
to and adopted by the Crystal City Council at a duly authorized meeting thereof held on the 15th
day of November, 2022, as shown by the minutes of said meeting in my possession.
Jim Adams, Mayor
ATTEST:
____________________________
Christina Serres, City Clerk
4.4
4.5
4.5
4.5
DATE: November 9, 2022
TO: Kim Therres, Interim City Manager
City of Crystal City Council
FROM: Jean McGann, Contracted Finance Director
RE: Expenditures over $25,000
Payee Amount
MN PERA Employee & city required contributions for 10/14/22 pay date $63,558.37
Acoustics Associates, Inc.New public safety building project costs $60,751.55
Ebert Construction New public safety building project costs $58,979.42
George F Cook Construction Co. New public safety building project costs $80,711.92
Intereum, Inc.New public safety building project costs $424,012.81
Kraus-Anderson Construction Co. New public safety building project costs $74,231.48
Laketown Electric New public safety building project costs $175,584.11
McDowall Company New public safety building project costs $104,289.70
Multiple Concepts Interiors New public safety building project costs $26,201.86
Northwest Asphalt, Inc.2022 utility reconstruction AFP #5 $621,554.56
RTL Construction, Inc.New public safety building project costs $68,868.25
Short Elliot Hendrickson, Inc. 2022 utility reconstruction engineering $30,161.45
Top Lite Contract Glazing New public safety building project costs $53,507.80
Video Services, Inc.New public safety building project costs $209,211.85
Met Council Environmental Services Wastewater services for November $142,050.57
West Metro Fire Relief Association Fire State Aid received from MN $298,047.47
West Metro Fire Rescue District October contribution to West Metro Fire $113,656.47
Gilleland Chevrolet Caddilac 2022 Chevy Silverado to replace #428 $49,130.00
LOGIS Monthly application support and hosting $36,625.00
Park Construction Company 2022 street resurfacing project $57,430.48
Peterson Companies, Inc.Central core stormwater project $498,750.95
Xcel Energy September city building electricity costs, street lights $28,468.21
MN PERA Employee & city required contributions for 10/28/22 pay date $67,346.43
$3,343,130.71
Description
6.1
CITY COUNCIL STAFF REPORT
Regular Agenda: Nov. 15, 2022 City Council meeting
Consideration of civil penalties for Cousins, LLC d/b/a
Adair Liquor for violation of liquor license regulations
DATE: Nov. 9, 2022
FROM: City Clerk Chrissy Serres
TO: Mayor and City Council
Interim City Manager Kim Therres
CC: Police Chief Stephanie Revering
City Attorney Troy Gilchrist
RE: Consideration of civil penalties for violation of liquor license regulations by
Cousins, LLC d/b/a Adair Liquor located 6001 42nd Ave. N.
Background
On or about Oct. 4, 2022, city staff received notice from the Minnesota Department of Public
Safety, Alcohol and Gambling Enforcement Division, that Adair Liquor provided alcoholic
beverages to another liquor store location under common ownership for resale of the product
and engaged in an unlicensed wholesale transaction.
The attached notice was sent to the owners and managers of Adair Liquor on Nov. 3, 2022. Also
attached is the letter staff received from the state regarding the specific liquor law violations of
Minnesota Statutes, chapter 340A. Per City Code, subsection 1200.35, subd. 1(f), a condition of
every liquor license the City Council issues is the requirement to comply with all liquor related
laws, rules and regulations, including the provisions of Minnesota Statutes, chapter 340A.
This is considered a third violation for this licensee.
Requested City Council action
Consistent with City Code and Resolution No. 2018-160, staff recommends Adair Liquor receive
a 10-day license suspension and civil fine of $2,000 with the city clerk determining the dates of
the license suspension and payment date of the fine.
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
6.2
Memorandum
DATE: November 8, 2022
TO: Mayor and City Council
Kim Therres, Interim City Manager
FROM: John Elholm, Recreation Director
SUBJECT: Purchase of a Prefabricated Truss Bridge for Bassett Creek Park
The 2022 capital budget includes funds to replace the pedestrian bridge in Bassett Creek
Park. There is $375,000 available; which includes $200,000 for a pedestrian bridge,
$100,000 for trails, and $75,000 in savings from projects that came in under budget.
The replacement includes two parts: 1) purchase and delivery of a 64’ x 10’ prefabricated
truss bridge and 2) construction of the abutments that the bridge is set on.
Quotes were solicited from three suppliers to provide the prefabricated truss bridge (built to
specifications) and they provided quotes as follows:
Art Thurseson, Inc. (Anderson Bridge) $ 73,300
Contech Engineered Solutions $ 83,740
Wheeler Lumber, LLC $ 88,900
Staff recommends approval of the attached resolution entering into an agreement with Art
Thureson, Inc. in the amount of $73,300; to provide a prefabricated truss bridge for Bassett
Creek Park. The timeframe to receive the truss bridge is approximately 5 months.
Quotes were also solicited from five contractors to build the bridge abutments. Two
contractors provided quotes as follows:
Engineer’s estimate $ 169,630
Landwehr, Inc. $ 330,922
Peterson Companies $ 364,285
Since the quotes were over the limit allowed to use a quote process ($175,000), we
cannot use them. Staff plans to include the pedestrian bridge abutments in the packet
for the nearby dog park project – tentatively planned for bidding in January. The high
quotes are likely due to a current shortage of concrete and the time of year the quotes
were requested. We anticipate prices will go down when the project is bid in January.
A watershed permit for this project was approved on October 20. The comment period
for a MN DNR permit ended on November 7, with no significant issues being expected.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
6.3
CITY OF CRYSTAL
RESOLUTION 2022 -
RESOLUTION IN SUPPORT OF PURCHASING A PREFABRICATED TRUSS BRIDGE
FOR BASSETT CREEK PARK
WHEREAS, the City of Crystal owns and operates Bassett Creek Park, and
WHEREAS, the 2022 capital budget includes funds to replace the pedestrian bridge in Bassett Creek
Park, and
WHEREAS, resolution 2021-114 in support of purchasing an 80’ pedestrian bridge in Bassett Creek Park
was approved by the Crystal City Council on December 21, 2021; but was not purchased in favor of
purchasing a bridge that is set on abutments, and
WHEREAS, three quotes were requested and received to provide and deliver a prefabricated truss bridge
for the project according to specifications, and
WHEREAS, the lowest quote for the 65’ x 10’ prefabricated truss bridge was from Art Thureson, Inc, in
the amount of $73,300, and
THEREFORE, BE IT RESOLVED:
A. That the Crystal City Council authorizes an agreement with Art Thureson, Inc. in the amount of
$73,300; to provide and deliver a 65’ x 10’ prefabricated truss bridge for Bassett Creek Park.
B. That the Crystal City Council further authorizes the mayor and interim city manager to sign the
agreement with Art Thureson, Inc. for this project.
Adopted by the Crystal City Council this 15th day of November, 2022.
________________________
Jim Adams, Mayor
ATTEST:
___________________________
Christina Serres, City Clerk
6.3
PROPOSAL ART THURESON, INC
510 Highland Ave Suite 205 Milford, MI 48381 248-623-8599
www.artthuresoninc.com
10/18/22
Quote #6178
Project: Bassett Creek bridge
Crystal, MN
Prefabricated Steel T russ Bridge
ORDER
Bridge Size: 64' x 10' Truss Type: Parallel Diagonals: 1 per panel
Design Code: AASHTO* Engineering State: Minnesota Est Lifting Weight: 22,000 lbs.
Loads: 90 psf, H5 Steel Grade: A588/A847 Finish: SP-6 (Weathering)
Safety Rails: Horizontal Rail Material: Steel Rub Rail: Included
Hand Rail: None Decking: Treated Doug Fir Sections: 1 (No splice)
Drawing/Design Price…...……………………………………………………………………$8,796
Bridge Price……………………………………………………………………………………$64,504
TOTAL $73,300
Additional Notes:
•(4) 10’ approach railings included and ship with bridge (Galvanized non-weathering steel per sheet B10)
•*Steel dimensions will be smaller than “assumed” dimensions on sheet B9
•*Overall geometry and loading will be per plans and specs
•AISC Certif ied Bridge Manufacturer: ANDERSON BRIDGES
•Anchor bolts are included and will ship with bridge section(s) - Adhesive supplied BY OTHERS
•Cover plates included. Expansion devices supplied and installed BY OTHERS
•Concrete and rebar supplied and installed BY OTHERS.
•Does not include the cost of unloading, installation, site visits, storage, or substructure design/materials.
DELIVERY: F.O.B: Crystal, MN. Freight rates are subject to adjustment if materials are delivered later than 180 days
from receipt of order. Delivery is made to a location nearest the site, which is easily accessible to normal over-the-road
tractor/trailer equipment. Oversized loads warrant additional consideration and providing suitable access shall be the
responsibility of others. All trucks delivering materials will need to be unloaded within two hours of the time of arrival.
Detailed, written instruction in the proper lifting procedures and splicing procedures (if required) will be provided. The
method and sequence of erection shall be the responsibility of others.
AVAILABILITY: Allow 3-4 weeks on shop drawings ARO. Allow 18-22 weeks fabrication time
after receipt of approved drawings. We have many bridges currently on order and the plant is extremely busy.
These times do not consider the contract specific completion date(s) - It is the responsibility of the contractor to request an
extension from the Owner and/or negotiate shorter lead times.
TERMS: Net 10 days from delivery, subject to credit approval. 12% Deposit due at acceptance. 28% progress
payment due after receipt of approved of shop drawings. Any changes in tally, delivery location, or specification will
affect pricing. 1.5% per month service charge on past due invoices. State and local taxes are not included. Quote will
expire in 30 days.
Thank you,
Jon Cheney
Art Thureson, Inc
jon@artthuresoninc.com
Accepted By:_________________________________________________ Date:___/___/___ Kim Therres, Interim City Manager
Ship to:__________________________________________________Contact Name & Cell:__________________________
A/P contact:_____________________________________________E-mail:_______________________________________
Please fill out and return to process order. Mail check
John Elholm
City of Crystal, MN
4800 Douglas DR. N
Crystal, MN 55429
763-531-1150
John.elholm@crystalmn.com
Accepted By:_________________________________________________ Date:___/___/___ Jim Adams, Mayor
Bassett Creek Park (coordinate exact location with Brad)Brad Fortin (763) 274-8300
Nate Jacobs Nathan.Jacobs@crystalmn.gov
11 15 22
11 15 22
6.3
Memorandum
DATE: November 8, 2022
TO: Mayor and City Council
Kim Therres, Interim City Manager
FROM: John Elholm, Recreation Director
SUBJECT: Purchase of an LED Lighting System for the Courts in Becker Park
The 2023 capital budget includes $75,000 to replace the pickleball and basketball court
lighting system in Becker Park. The project includes two parts: 1) purchase and delivery
of the lighting system and 2) installation by an electrician. The lighting system can be
purchased at a reduced rate through the Sourcewell Cooperative Purchasing Program
(contract number 071619). An electrician will be hired under a separate agreement to
install the lights.
Lighting System Purchase (this item) $ 56,090
Electrician (estimate - future item) $ 18,500
Total $ 74,590
Staff recommends approval of the attached resolution entering into an agreement with Musco
Sports Lighting, LLC in the amount of $56,090; to provide an LED lighting system for the new
pickleball and basketball courts in Becker Park. The timeframe to receive the LED lighting
system is approximately 2 months.
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
6.4
CITY OF CRYSTAL
RESOLUTION 2022 -
RESOLUTION IN SUPPORT OF PURCHASING AN LED LIGHTING SYSTEM FOR
THE PICKLEBALL AND BASKETBALL COURTS IN BECKER PARK
WHEREAS, the City of Crystal owns and operates Becker Park, and
WHEREAS, the 2023 capital budget includes funds to install an LED lighting system for the pickleball
and basketball courts in Becker Park, and
WHEREAS, a lighting system can be purchased at a reduced rate from Musco Sports Lighting, LLC
through the Sourcewell Cooperative Purchasing Program (contract #071619) in the amount of $56,090,
and
THEREFORE, BE IT RESOLVED:
A. That the Crystal City Council authorizes an agreement with Musco Sports Lighting, LLC in the
amount of $56,090; to provide and deliver a lighting system for the pickleball and basketball
courts in Becker Park.
B. That the Crystal City Council further authorizes the mayor and interim city manager to sign the
agreement with Musco Sports Lighting, LLC for this project.
Adopted by the Crystal City Council this 15th day of November, 2022.
________________________
Jim Adams, Mayor
ATTEST:
___________________________
Christina Serres, City Clerk
6.4
:
Date: September 6, 2022 Project Name: Becker Park Tennis Phase 1 Project #: 205391
1999, 2022 Musco Sports Lighting, LLC • M-1010-enUS-40-draft
Page 1 of 5
Purchase Agreement
www.musco.com • lighting@musco.com
1. SELLER NAME AND ADDRESS:2. BUYER NAME AND ADDRESS:
Musco Sports Lighting, LLC (“Musco”)City of Crystal (the “Buyer”)
100 1st Avenue West – PO Box 808 4141 Douglas Drive North
Oskaloosa, IA 52577 Crystal, MN 55323
Attn: Rachel Hadden Attn: Brad Fortin
Email: Rachel.hadden@musco.com Email: brad.fortin@crystalmn.gov
Telephone: 641-673-0411
800-825-6020 Ext 2416
Telephone: 763-274-8300
3. OWNER NAME AND ADDRESS:4.SHIPPING NAME AND ADDRESS:
City of Crystal (the “Buyer”) Becker Park
4141 Douglas Drive North 5530 Douglas Drive North
Crystal, MN 55323 Crystal, MN 55323
Attn: Brad Fortin Attn:
Email: brad.fortin@crystalmn.gov Email:
Telephone: 763-274-8300 Telephone:
5. WARRANTY CONTACT: 6. FACILITY NAME AND ADDRESS:
City of Crystal (the “Buyer”) Becker Park
4141 Douglas Drive North 5530 Douglas Drive North
Crystal, MN 55323 Crystal, MN 55323
Attn:
Email:
Telephone:
7. EQUIPMENT DESCRIPTION – Musco shall sell, transfer, and deliver to Buyer, and Buyer will purchase,
accept, and pay for the following goods (the “Equipment”) in accordance with the “Total Price” paragraph
of this Agreement:
SportsCluster® Lighting System
Poletop luminaire assemblies with:
12 – Total Light Control™ TLC-LED-400 factory-aimed and assembled luminaires
4 – Total Light Control™ TLC-LED-600 factory-aimed and assembled luminaires
Pole length factory assembled wire harnesses
Factory wired and tested remote electrical component enclosures
Mounting hardware for poletop luminaire assemblies and electrical components enclosures
Disconnects
With Controls
Control-Link® control and monitoring system to provide remote on/off and dimming
(high/medium/low) control and performance monitoring with 24/7 customer support
Built to the following specifications:
Driver input voltage:
Phase to pole: phase
Structural integrity: based upon IBC 2015, 115mph, Exposure: C
Light level(s): 30 footcandles Tennis Courts 1-3; 20 footcandles Basketball Court
8. RESPONSIBILITIES OF THE BUYER AND/OR THIRD PARTY – Buyer/Third Party agrees to:
Confirm supply voltage required for lighting system.
Confirm pole or luminaire locations.
Provide electrical design and materials for electrical distribution system.
Provide labor and equipment for installation of electrical distribution system.
6.4
:
Date: September 6, 2022 Project Name: Becker Park Tennis Phase 1 Project #: 205391
1999, 2022 Musco Sports Lighting, LLC • M-1010-enUS-40-draft
Page 2 of 5
Purchase Agreement
www.musco.com • lighting@musco.com
9. MUSCO CONTROL-LINK® CONTROL SYSTEM – Musco agrees to provide design and layout for the
control system. In addition to the Equipment, Musco agrees to provide the following:
Control-Link Central™ customer support services: commission the system; monitor and report system
alarms; provide automated facility management reports; provide on-off schedules via Control-Link
Central™ app or website, email, phone call or fax; and provide technical support 24 hours a day, seven
days a week.
10. MUSCO SERVICES – Musco agrees to provide, itself or through its subcontractors, design, layout, testing
and commissioning for the Equipment and the following (collectively, the "Services"):
No additional Services
11. CONSTANT 10™ WARRANTY & MAINTENANCE PROGRAM (the “Warranty”) – Musco shall provide
parts, labor and all services outlined in the Musco Constant 10 Agreement to maintain operation of lighting
equipment for 10 years as follows:
Warranty service begins: On the date of product shipment
Expiration date: 10 years from date of shipment
Monitoring, maintenance & control services
Light levels – as specified in Musco design documents
Spill light control – as specified in Musco design documents
Energy consumption: as specified in Musco design documents
12. TOTAL PRICE – Buyer will pay for the above-described Equipment and, if applicable, Services. The Total
Price of $56,090.00 plus applicable taxes is payable as follows.
$56,090.00 within 30 days from invoice date
A copy of the payment and performance bond (if applicable) is required prior to shipment.
Monthly progress invoicing and payments will apply.
Final payment shall not be withheld by Buyer on account of delays beyond the control of Musco.
Project is being purchased through the following cooperative purchasing agreement:
Sourcewell (contract number 071619-msl expiration 08/27/2023)
Price includes delivery to the address indicated in item #4 of this Agreement. Price does not include sales
tax, unloading or installation.
Payments not paid when due are subject to a carrying charge for each month past due or will be pro-
rated for the portion of the month there is an unpaid balance. Carrying charges shall accrue in the amount
of one and one half percent (1½%) per month of any overdue unpaid balance, or the maximum rate
permitted by law, whichever is less.
Source of Funds: Buyer agrees that Buyer’s payment to Musco is not contingent upon Buyer getting
paid by the Owner/End User.
Buyer may not hold back or set off any amounts owed to Musco in satisfaction of any claims asserted by
Buyer against Musco. No partial payment by Buyer shall constitute satisfaction of the entire outstanding
balance of any invoice of Musco, notwithstanding any notation or statement accompanying that payment.
The Total Price was calculated utilizing parameters outlined in the project specifications. In the event soil
conditions vary from those relied upon, or if the soil cannot be readily excavated, Buyer shall be
responsible for Musco’s additional associated costs, including but not limited to the cost of design,
alternate foundations, additional materials, and labor.
6.4
:
Date: September 6, 2022 Project Name: Becker Park Tennis Phase 1 Project #: 205391
1999, 2022 Musco Sports Lighting, LLC • M-1010-enUS-40-draft
Page 3 of 5
Purchase Agreement
www.musco.com • lighting@musco.com
13. TAXES – Buyer shall pay all applicable state and local sales taxes, use or any similar tax invoiced
appropriately by Musco.
Taxable Non-Taxable (Copy of resale or exemption certificate must be attached. Note:
Just holding a sales tax permit does not, in and of itself, qualify for
a non-taxable sale.)
14. PAYMENT/PERFORMANCE BONDING – Is there a bond on this project? Yes No
Principal Bond Holder:
Bonding Company Name:
Bonding Company Address:
Bonding Company Address
Phone Number:
Bond Number:
DELIVERY – Normal delivery to the shipping address indicated above is 8 to 12 weeks after submittal
approval or release of order, if later. If the Equipment is shipped in multiple lots, Musco shall prepare a
separate invoice for the price of the Equipment shipped at the time of each shipment. Buyer shall pay the
amount of each such invoice upon the same terms as set out in the “Total Price” paragraph of this
Agreement.
All deliveries shall be made by means of a common carrier or some other reasonable means chosen by
Musco. All risk of loss to Equipment sold shall pass to Buyer upon delivery by Musco of such Equipment
to the shipping location indicated above.
Delivery is subject to Buyer maintaining credit satisfactory to Musco. Musco may suspend or delay
performance or delivery at any time pending receipt of assurances, including full or partial prepayment or
payment of any outstanding amounts owed adequate to Musco in its discretion, of Buyer's ability to pay.
Failure to provide such assurances shall entitle Musco to cancel this contract without further liability or
obligation to Buyer.
15. NO RETAINAGE/WARRANTY – Buyer acknowledges payment in full is required within the agreed terms.
Warranty claims and back charges shall not be deducted from contract payments without prior approval
of Musco’s Warranty Department (877-347-3319). Musco’s Equipment and its performance are sold
subject to Musco’s written warranty. The Warranty provided by Musco shall be in lieu of all other
representations, warranties and conditions of any kind, in respect of the Equipment or the Services and
Musco disclaims any other representation, warranty or condition whatsoever, whether written or oral,
express or implied, statutory or otherwise, including, but not limited to, the implied warranties and
conditions of merchantability and fitness for a particular purpose.
Buyer acknowledges that any warranty and/or maintenance guarantee contained within
payment/performance bonds issued on Musco’s behalf pursuant to this Agreement and the
corresponding liability on behalf of the issuing surety shall apply only to the first 12 months of any warranty
and/or maintenance obligation of Musco specified in the written Warranty to be delivered to Buyer. The
balance of any warranty and/or maintenance obligation greater than 12 months shall be the sole
responsibility of Musco and shall not be guaranteed by a third party.
16. EXCLUSION OF SPECIAL DAMAGES – In no event shall Musco be liable for incidental, special or
consequential damages, including without limitation lost revenues and profits, in respect of this
Agreement or the Equipment and, if applicable, Services provided hereunder.
17. LIMITATIONS PERIOD – Unless otherwise specified in the Warranty to be delivered to Buyer, any action
or proceeding against Musco arising out of or relating to the Equipment or Services will be forever barred
unless commenced within the earlier of: (a) one (1) year after delivery of the Equipment or if applicable,
completion of the Services; or (b) the period prescribed by the applicable statute of limitation or repose.
6.4
:
Date: September 6, 2022 Project Name: Becker Park Tennis Phase 1 Project #: 205391
1999, 2022 Musco Sports Lighting, LLC • M-1010-enUS-40-draft
Page 4 of 5
Purchase Agreement
www.musco.com • lighting@musco.com
18. SECURITY AGREEMENT – In consideration of the promises contained herein, Buyer hereby grants and
conveys to Musco, to secure payment and performance of all obligations in full, a purchase money
security interest in the Equipment, including all repairs, replacements and accessions thereto and
proceeds thereof (collectively referred to as the “Secured Property”). Buyer hereby irrevocably authorizes
Musco at any time to register in any registration office in any province (including personal property
registries and if applicable, land titles or real property registries) any initial financing statements, financing
change statements, notices of security interest or other documents relating to this security interest or this
transaction. Buyer further agrees to promptly furnish any information requested by Musco to effectuate
the terms of this Agreement. Buyer further agrees to execute any document reasonably required by
Musco to perfect the security interest granted herein and to assure the preservation, priority, and
enforcement of such security interest. Buyer agrees that value has been given for this security interest
and that the parties have not agreed to postpone the time for attachment of the security interest.
19. INSURANCE – From and after delivery, regardless of the pending performance of the Services, until such
time as Buyer has performed in full all obligations contained herein, Buyer shall maintain adequate
insurance covering the Equipment in accordance with generally accepted business practices. Buyer shall
name Musco as loss payee until such time as Buyer has performed in full all obligations contained herein.
20. DEFAULT – Each of the following shall constitute a default (“Default”) under this Agreement: a) failure to
pay, in full, any payment when due hereunder; b) Buyer becomes the subject of a bankruptcy, receivership
or insolvency proceeding; c) any warranty, representation or statement made or furnished to Musco by
or on behalf of the Buyer proved to have been false in any material respect when made or furnished; d)
loss, theft, damage, destruction or encumbrance to, or of, the Secured Property or the making of any
levee, seizure or attachment thereof or thereon prior to payment in full; or e) the occurrence or non-
occurrence of any event or events which causes Musco, in good faith, to deem itself insecure for any
reason whatsoever.
21. REMEDIES UPON DEFAULT – In the event of Default, Musco may, at its option, and without notice or
demand: a) declare the entire unpaid balance owing hereunder due and payable at once; b) proceed to
recover judgment for the entire unpaid balance due; c) exercise all rights provided to Musco under this
Agreement, any applicable personal property security act (or similar legislation), at law or in equity
including but not limited to entering the Buyer’s premises and taking possession of the Secured Property.
All the remedies described herein are cumulative and may be exercised in any order by Musco. Buyer
agrees to pay all costs (including reasonable attorney’s fees and court costs) incurred by Musco in
disposing of the Secured Property and collecting any amounts owing hereunder, and such costs shall be
part of the obligations secured hereunder.
22. FORCE MAJEURE – Musco shall not be liable for delays or failure to perform in respect of the Equipment
or the Services due, directly or indirectly, to (i) causes beyond Musco's reasonable control, or (ii) acts of
God or nature, acts (including failure to act) of any governmental authority, wars (declared or undeclared),
strikes or other labor disputes, fires, and natural calamities (such as floods, earthquakes, storms,
epidemics).
23. EEO COMPLIANCE – When applicable, Musco and Subcontractor shall comply with the EEO
Clause in Section 202 of Executive Order 11246, as amended, which is incorporated herein by
specific reference.
When applicable, Musco and Subcontractor shall abide by the requirements of 41 CFR 60-741.5(a)
and 41 CFR 60-300.5(a). These regulations prohibit discrimination against qualified individuals
on the basis of disability and against qualified protected veterans, and require affirmative action
by covered prime contractors and subcontractors to employ and advance in employment
qualified individuals with disabilities and qualified protected veterans.
6.4
:
Date: September 6, 2022 Project Name: Becker Park Tennis Phase 1 Project #: 205391
1999, 2022 Musco Sports Lighting, LLC • M-1010-enUS-40-draft
Page 5 of 5
Purchase Agreement
www.musco.com • lighting@musco.com
24. CONDITIONS OF AGREEMENT
a. APPLICABLE LAW – This Agreement shall be governed by the laws, including the Uniform
Commercial Code, adopted in the State of Iowa as effective and in force on the date of this
Agreement.
b. EXPENSES/REMEDIES – Buyer shall pay to Musco the reasonable expenses, including court costs,
legal and administrative expenses, and reasonable legal fees (on a solicitor and client basis), paid
or incurred by Musco in endeavoring to collect amounts due from Buyer to Musco. It is further
understood that if Buyer does not make a payment as due, Musco has the right to forward
appropriate notices or claims on jobs with owners, bonding companies, general contractors, or the
like, as deemed appropriate by Musco.
c. ENTIRE AGREEMENT – This Agreement, the written Warranty to be delivered to Buyer, and any
invoice issued by Musco pursuant to this Agreement constitute the entire agreement between the
parties and supersede all prior statements of any kind made by the parties or their representatives.
No representative or employee of Musco has any authority to bind Musco to any term,
representation, or warranty other than those specifically included in this written Agreement or the
written Warranty to be delivered to Buyer in connection with this Agreement. This Agreement may
not be amended or supplemented except by written agreement executed by Musco and Buyer.
d. ACCEPTANCE – This Agreement is subject to the approval of Musco’s Credit Department and the
written acceptance of this Order by Musco.
CITY OF CRYSTAL MUSCO SPORTS LIGHTING, LLC
Acceptance
this ______day of ________________, 20___
Acceptance
this ______day of ________________, 20___
Jim Adams, Mayor Signature
Kim Therres, Interim City Manager Name and Title
Please remember to return all pages of this agreement.
15th November 22
6.4
CCCRRRYYYSSSTTTAAALLL PPPOOOLLLIIICCCEEE DDDEEEPPPAAARRRTTTMMMEEENNNTTT
“Service with Compassion and Integrity”
TO: Mayor and Council Members
FROM: Stephanie K. Revering, Chief of Police
CC: Kim Therres, Acting City Manager
DATE: November 10, 2022
SUBJECT: POLICE EQUIPMENT REVOLVING FUND
___________________________________________________________________________
MMEEMMOORRAANNDDUUMM
BACKGROUND
As you are aware, our police department has been equipped with body cameras since June,
2017. We are at the point that they need to be replaced/upgraded, due to technology.
COST
We have partnered with Motorola and they have provided us with a 5-year plan for body
cameras. The total cost over 5 years will be $131,388. We have sufficient funds in the Police
Equipment Revolving Fund to cover this cost.
RECOMMENDATION
To approve the attached resolution with Motorola to purchase body cameras for a total cost
over 5 years of $131,388.
As always, please let me know if you have any questions. Thanks.
6.5
RESOLUTION NO. 2022-
RESOLUTION APPROVING POLICE EQUIPMENT REVOLVING FUND
EXPENDITURE FOR PURCHASE OF 34 BODY CAMERAS AND OTHER
NECESSARY EQUIPMENT FOR INSTALLATION PURPOSES
WHEREAS, the Acting City Manager's office has received and recommends
approval of said appropriations, and
WHEREAS, the appropriation is included in the 2022-2027 Police Equipment
Fund Budget, and
WHEREAS, the City Council hereby acknowledges:
1. The body cameras will be utilized by Police Officers for recording video
evidence and activity.
2. The most suitable source of funding is the Police Equipment Revolving
Fund.
3. Per the Police Equipment Revolving Fund's Policy, there will be sufficient
accumulated earnings to cover the appropriation without use of fund
principal.
WHEREAS, the City has an independent quote from Motorola for the purchase of
34 body cameras and necessary equipment for installation
NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF
THE CITY OF CRYSTAL hereby accepts the independent bid quote and appropriates
monies from the Police Equipment Revolving Fund for the purchase of the Motorola
Body Cameras for Law Enforcement Purposes. Cost to include purchase of the 34 body
cameras as well as necessary installation of accessories on a 5-year plan for a total of
$131,388. Year 1=$47,100, Year 2=$21,072, Year 3=$21,072, Year 4=$21,072, and
Year 5=$21,072 for a total of $131,388.
Adopted by the Crystal City Council this 15th day of November 2022.
____________________________________
Jim Adams, Mayor
ATTEST:
_______________________________
Chrissy Serres, City Clerk
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6.7
CR205-30-838189.v1
Kennedy Troy J. Gilchrist
150 South Fifth Street
Suite 700
Minneapolis MN 55402
(612) 337-9214 telephone
(612) 337-9310 fax
tgilchrist@kennedy-graven.com
http://www.kennedy-graven.com
&
Graven
C H A R T E R E D Also: St. Cloud Office
501 W. Germain Street, Suite 304
St. Cloud, MN 56301
(320) 240-8200 telephone
MEMORANDUM
To: Crystal City Council
From: Troy Gilchrist
Date: November 9, 2022 (for November 15, 2022 Council Meeting)
Re: Decision Needed on Whether to Repeal or Reaffirm Ordinance No. 2022-06
---------------------------------------------------------------------------------------------------------------------
As the Council is aware, the City received a referendum petition regarding Ordinance No. 2022-
06 “An Ordinance Making Various Amendments to Chapter V of the Crystal City Code”
(“Ordinance”). Under Crystal City Charter, Section 5.09, the “council must act at its next regular
meeting either repeal the ordinance or re-affirm the ordinance as enacted.” If the Council repeals
the Ordinance, it does not go into effect. If the Council reaffirms the Ordinance, it must be placed
on the ballot for a vote at either a special election or the 2024 regular election.
The Council discussed this matter at its November 10, 2022 work session. Because the packet for
the November 15, 2022 meeting needed to be completed prior to the work session, I did not have
the benefit of Council direction on preparing the materials for the packet. As such, two resolutions
are enclosed, one repealing the Ordinance and one reaffirming the Ordinance. The Council will
obviously need to act on one of resolutions at the November 15 meeting.
If the Council decides to reaffirm the Ordinance, it will need to decide whether the ballot question
will be asked at the 2024 regular election or at a special election that can be held on one of the
following dates: February 14, April 11, May 9, August 8, and November 7. The Council can
indicate the date of the election as part of acting on the resolution and I will revise the ordinance to
reflect the selected date prior to signature.
If the Council decides to repeal the Ordinance, it will be considered as never having gone into effect
and is essentially voided.
I will be happy to answer any questions the Council may have at the meeting.
6.8
CR205-30-834856.v2
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2022-__
RESOLUTION REPEALING ORDINANCE 2022-06
IN RESPONSE TO CITIZEN PETITION
WHEREAS, the Crystal City Council adopted Ordinance No. 2022-06 “An Ordinance
Making Various Amendments to Chapter V of the Crystal City Code” (“Ordinance”) at its meeting
held on September 6, 2022, with such Ordinance scheduled to become effective October 15, 2022;
and
WHEREAS, on October 11, 2022, the City Clerk received a petition requesting a referendum
on the Ordinance under Crystal City Charter, Chapter 5, Sections 5.09-5.10 (“Petition”); and
WHEREAS, on October 18, 2022, the City Clerk determined that the Petition was signed by
eligible voters equal to at least five percent of the number of registered voters in the city on the date
of the last regular city election, as is required in Crystal City Charter, Chapter 5.09; and
WHEREAS, receipt of a sufficient Petition means the Ordinance does not go into effect and
the City Council may choose to either repeal the Ordinance or reaffirm the Ordinance as enacted and
submit the Ordinance for approval by the voters at a special or general election; and
WHEREAS, the amendments were largely corrective in nature and so the City Council
determines repealing the Ordinance is preferred to incurring the cost of calling a special election or
waiting until the 2024 general election to submit the question of approving the Ordinance to the voters.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal that
Ordinance 2022-06 “An Ordinance Making Various Amendments to Chapter V of the Crystal City
Code” did not go into effect and is hereby repealed in its entirety.
Adopted this 15th day of November 2022.
______________________________
Jim Adams
Mayor
ATTEST:
_______________________________
Chrissy Serres
City Clerk
6.8
CR205-30-838175.v1
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2022-__
RESOLUTION REAFFIRMING ORDINANCE 2022-06
IN RESPONSE TO CITIZEN PETITION
WHEREAS, the Crystal City Council adopted Ordinance No. 2022-06 “An Ordinance
Making Various Amendments to Chapter V of the Crystal City Code” (“Ordinance”) at its meeting
held on September 6, 2022, with such Ordinance scheduled to become effective October 15, 2022;
and
WHEREAS, on October 11, 2022, the City Clerk received a petition requesting a referendum
on the Ordinance under Crystal City Charter, Chapter 5, Sections 5.09-5.10 (“Petition”); and
WHEREAS, on October 18, 2022, the City Clerk determined that the Petition was signed by
eligible voters equal to at least five percent of the number of registered voters in the city on the date
of the last regular city election, as is required in Crystal City Charter, Chapter 5.09; and
WHEREAS, receipt of a sufficient Petition means the Ordinance does not go into effect and
the City Council may choose to either repeal the Ordinance or reaffirm the Ordinance as enacted and
submit the Ordinance for approval by the voters at a special or general election; and
WHEREAS, the City Council determines that it is in the best interests of the City and its
residents to submit the Ordinance to the voters for a decision on whether it should go into effect.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal as
follows:
1. Ordinance 2022-06 “An Ordinance Making Various Amendments to Chapter V of the Crystal
City Code” is hereby reaffirmed as enacted.
2. The Ordinance shall be submitted to voters at [the 2024 regular City election] [a special election
which is hereby ordered to be held in 2023 on (February 14, April 11, May 9, August 8, and
November 7)].
3. The City Manager is authorized and directed to take such steps as may be needed to submit the
Ordinance to a vote of the City’s voters and to otherwise carry out the intent of this Resolution.
Adopted this 15th day of November 2022.
6.8
CR205-30-838175.v1
______________________________
Jim Adams
Mayor
ATTEST:
_____________________________
Chrissy Serres
City Clerk
6.8
AGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
• REGULAR MEETING •
TUESDAY, NOVEMBER 15, 2022
FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order *
2. Roll call *
3. Approval of minutes from October 18, 2022 regular meeting
4. Consider a resolution approving a modification to the Redevelopment Plan for
Redevelopment Project No. 1 and Tax Increment Financing (TIF) Plan for Establishment
of Tax Increment Financing District No. 5 (Sand), a housing district located at 5240 West
Broadway
5. Consider a resolution approving an interfund loan for Tax Increment Financing District No.
5 (Sand), a housing district located at 5240 West Broadway
6. Property status update *
7. Other business *
8. Adjournment *
*Items for which no materials are included in the packet
Page 1 of 3
Minutes of the
Economic Development Authority of the City of Crystal
Regular Meeting
Council Chambers
October 18, 2022
1. Call to Order
President Banks called the meeting of the Economic Development Authority of the City
of Crystal (EDA) to order at 6:30 p.m.
2. Roll Call
Upon call of the roll, the following Commissioners were present: Jim Adams, Brendan
Banks, Therese Kiser, Nancy LaRoche and Olga Parsons.
The following staff were present: Executive Director Anne Norris, Deputy Executive
Director John Sutter and City Attorney Tro y Gilchrist.
3. Approval of Minutes
Moved by Commissioner LaRoche (Adams) to approve the minutes from the October 3,
2022 regular meeting. Motion carried.
4. Public Hearing - Consider a resolution authorizing the sale of 4824 56th Ave. N. for
construction of a two family dwelling
Staff presented the report and requested EDA approval of the resolution.
President Banks opened the public hearing.
There being no persons desiring to speak on this item, President Banks closed the public
hearing.
Moved by Commissioner LaRoche (Adams) to adopt the resolution authorizing the sale
of 4824 56th Ave. N. for construction of a two family dwelling. Motion carried.
5. Property Status Update
Staff updated the board on the former Half Price Books space at 5600 West Broadway,
former Burger King at 5358 West Broadway and the former Pizza Hut at 3600 Douglas
Dr. N.
Page 2 of 3
6. Other Business
There was no other business.
7. Adjournment
Moved by Commissioner LaRoche (Adams) to adjourn the meeting. Motion carried. The
meeting adjourned at 6:40 p.m.
Page 3 of 3
These minutes of the October 3, 2022 meeting of the Crystal Economic Development Authority
were approved by the Authority on ________________ ____, 20___.
______________________________
Brendan Banks, President
ATTEST:
______________________________
Nancy LaRoche, Secretary
Page 1 of 2
___________________________________________________________________________
FROM: John Sutter, Community Development Director
DATE: November 10, 2022
TO: Kim Therres, Executive Director (for November 15 EDA meeting)
SUBJECT: Consider a resolution approving a modification to the Redevelopment Plan
for Redevelopment Project No. 1 and Tax Increment Financing (TIF) Plan
for Establishment of Tax Increment Financing District No. 5 (Sand), a
housing district located at 5240 West Broadway
BACKGROUND
On June 15, 2021, the EDA adopted a resolution of support for tax increment financing to
facilitate the Sand Companies proposed development of a <60% AMI affordable, 58 unit
apartment building on a 1.75 acre the site at 5240 West Broadway. The initial estimate for 10
years of increment was a present value of $550,000, but a subsequent legislative change to
the 4d low income housing property tax class rate tiers reduced the estimated 10 year TIF
amount to $400,000. (Attachment 1)
On June 14, 2022, Sand submitted an application to rezone the site to Town Center - Planned
Development including site and building plans. On Aug. 16, 2022, the Planning Commission
recommended approval of the rezoning, and on Sep. 6, 2022, the City Council adopted an
ordinance approving the rezoning. (Attachment 2)
PROPOSED TIF DISTRICT
Ehlers has prepared a TIF plan (Attachment 3) which would establish a new TIF district No. 5
for the 5240 West Broadway development site.
• The TIF plan budget is a maximum budget for the 26 year life of the district, and is not
indicative of the assistance to Sand, which will be much lower based on no more than 10
years of net increment. The estimated present value of the net tax increment over the 26
year life of the district is $1,328,768. However, assuming 10 years of net TIF, the maximum
present value amount to be provided to Sand is estimated at $389,000.
EDA STAFF REPORT
5240 West Broadway
Resolution approving TIF District #5 (Sand)
Page 2 of 2
• The assistance to Sand would be in the form of a pay-as-you-go note, similar to what was
done for The Cavanagh.
• Ehlers is currently completing the financial analysis to determine whether Sand still needs
10 years of TIF. Once the amount and term of necessary assistance to Sand Is determined,
a formal TIF agreement will be prepared for EDA consideration at a subsequent meeting in
late 2022 or early 2023.
• Once the Sand TIF note is paid off, the city will have the option of either decertifying the
district or continuing to collect increment to use for other affordable housing projects that
meet the required income limits. For rental housing, at least 20% of units must be
affordable at 50% AMI or 40% of units must be affordable at 60% AMI. For owner occupied
units, the maximum income is 100% AMI for 1-2 person households and 115% AMI for
households of 3 or more.
REQUESTED EDA ACTION
Adoption of the resolution approving the TIF plan (Attachment 4).
NEXT STEPS
The City Council will hold a public hearing on Dec. 6, 2022 to consider a resolution adopting
the TIF plan and establishing TIF District No. 5 (Sand).
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2021-06
RESOLUTION SUPPORTING TAX INCREMENT FINANCING ASSISTANCE
FOR A MULTI-FAMILY HOUSING PROJECT AT 5240 WEST BROADWAY
WHEREAS, Access Development, LLC ("Developer") has proposed to build a 58 unit
multi-family housing development project with a proposed address of 5240 West
Broadway ("Project") on a vacant site addressed as 5232-5256 West Broadway; and
WHEREAS, Developer intends to apply for Low Income Housing Tax Credit financing
("Tax Credits") for the Project; and
WHEREAS, the success of this application will depend, to some degree, on local
support of the project through the commitment of Tax Increment Financing.
NOW THEREFORE, BE IT RESOLVED BY THE ECONOMIC DEVELOPMENT
AUTHORITY OF THE CITY OF CRYSTAL, MINNESOTA ("EDA"):
1.The EDA supports the application for Tax Credits for a 58 unit multi-family housing
development project at 5240 West Broadway; and
2.Upon receipt of a complete Application for Public Financing from Developer,
including the application fee and escrow deposit, staff is authorized to prepare a Tax
Increment Financing Plan ("TIF Plan") for a tax increment financing district qualified
as a housing district with a maximum of$ 550,(XJQ in tax increment financing. assistance, subject to the procedures under state law for the establishment of the
tax increment district and the grant of tax increment financing assistance, for
consideration by the EDA and City Council; and
3.The TIF Plan preparation authorized by this resolution shall be predicated upon the
award of Tax Credits for the Project, and if Developer has not secured an allocation
of Tax Credits for the Project by February 1, 2022, then the support for the Project
expressed by this resolution shall expire and be no longer in effect; and
Page 1 of 2
ATTACHMENT 1
4.The adoption of this resolution does not bind the City of Crystal or its Economic
Development Authority to provide tax increment financing or other available
municipal funds for the Project.
Adopted this 15th day of June, 2021.
Page 2 of 2
ORDINANCE NO. 2022 -05
CITY OF CRYSTAL
AN ORDINANCE AMENDING THE ZONING MAP TO REZONE
PROPERTY FOR CRYSTAL HOUSING GROUP LOCATED AT 5232, 5240,
5248, AND 5256 WEST BROADWAY AVENUE FROM INDUSTRIAL (I)
TO TOWN CENTER -PLANNED DEVELOPMENT (TC-PD)
THE CITY OF CRYSTAL ORDAINS:
Section 1. Legislative Findings. The City Council of the City of Crystal hereby finds and
determines as follows:
Section 2.
(a)Crystal Housing Group ("Applicant") has requested to rezone property it
proposes to purchase at 5232, 5240, 5248, and 5256 West Broadway Avenue
("Property") to the town center -plaimed development overlay district as
provided in Crystal city code, subsection 515.13; and
(b)The request would rezone the Property from Industrial (I) to Town Center -
Planned Development (TC-PD); and
(c)The rezoning request is to allow the Applicant to construct a four story, 58-
unit apartment building, which involves the consolidation of the Property into
a single platted parcel and approval of a site plan; and
(d)The Planning Commission held a public hearing on the rezoning request on
August 8, 2022 and voted to forward the requested rezoning to the City
Council with a recommendation that it be approved with certain conditions;
and
(e)The City Council determines the proposed rezoning of the Property complies
with the approval criteria in Crystal city code, subsection 510.31 and 515.13
and other applicable provisions.
Rezoning. Subject to the conditions in Section 3 of this ordinance, the Zoning
Map of Crystal, Minnesota is hereby amended as follows:
The zoning classification of the following legally described property addressed as
5232, 5240, 5248, and 5256 West Broadway Avenue, currently classified as
Industrial (I), shall henceforth be classified as Town Center -Planned Development
(TC-PD), which is proposed to be combined as:
Lot 1, Block 1, Crystal Housing Group Addition, Hennepin County,
Minnesota.
ATTACHMENT 2
Section 3.
Section 4.
Section 5.
Conditions. The rezoning approved herein is conditioned on compliance with the
following:
1. 2. .) .
Site Plan. The development shall be constructed according to the site plan
in attachment E of the staff report. Prior to issuance of the building permit,
the applicant shal 1:
1.Receive approval by the City Council of lot consolidation and alley
easement vacation applications to combine the applicant's four
properties at 5232, 5240, 5248, and 5256 West Broadway Avenue into
one parcel, vacate the alley easement, and provide new easements on
the final plat document.
2.Submit a plan to screen rooftop mechanical units according to the
requirements of Crystal city code, subsection 520.13.
3.Provide an updated utility plan and detail sheet that shows a gate valve
for the new water service connection, as well as for the fire hydrant. A
note shall be added to the plan that plastic rings will be used, not
concrete adjusting rings.
4.Sign a site improvement agreement with the city and provide an
escrow to guarantee installation of the surface parking lot,
underground stormwater chamber, and landscaping plan.
Overhead utilities. If utility lines are installed, relocated or extended, the
lines shall be buried underground. New private utilities, such as Xcel
Energy, Center Point Energy, or Comcast shall be buried underground.
Special provisions related to Town Center -Planned Development
rezoning. The rezoning to TC-PD implements the following special
provisions in place of the standard town center requirements:
a.The number of enclosed parking spaces is reduced from 58 to 52
spaces.
b.The minimum glazing requirement is reduced from 50% to 33% for
the first floor and from 30% to 27% for the upper floors.
c.The minimum first floor height is reduced from 12' to 10'.
d.The building street frontage requirement is reduced from 75% to 69%.
e.The maximum front building setback is increased from IO' to 24'.
Zoning Map Amendment. The zoning administrator is authorized and directed to
amend the Zoning Map in accordance with this ordinance and to take any such
other actions as may be required to effectuate this rezoning.
Effective Date. This ordinance shall not be codified into the Crystal city code and
is effective in accordance with Crystal city code, subsection 110.11.
SEP. 6, 2022 SITE PLAN EXCERPTS
SEP. 6, 2022 BUILDING PLAN EXCERPTS
Adoption Date: December 6, 2022
Economic Development
Authority of the
City of Crystal
Hennepin County, Minnesota
MODIFICATION TO THE
REDEVELOPMENT PLAN
Redevelopment Project No. 1
&
Tax Increment Financing (TIF) Plan
Establishment of Tax Increment
Financing District No. 5 (Sand)
(a housing district)
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Prepared by:
Ehlers
3060 Centre Pointe Drive
Roseville, Minnesota 55113
ATTACHMENT 3
TABLE OF CONTENTS
Modification to the Redevelopment Plan for Redevelopment Project No. 1 1
FOREWORD 1
Tax Increment Financing Plan for Tax Increment Financing District No. 5
(Sand) 2
FOREWORD 2
STATUTORY AUTHORITY 2
STATEMENT OF OBJECTIVES 2
REDEVELOPMENT PLAN OVERVIEW 3
DESCRIPTION OF PROPERTY IN THE DISTRICT AND PROPERTY TO BE
ACQUIRED 3
DISTRICT CLASSIFICATION 4
DURATION & FIRST YEAR OF DISTRICT’S TAX INCREMENT 4
ORIGINAL TAX CAPACITY, TAX RATE & ESTIMATED CAPTURED NET TAX
CAPACITY VALUE/INCREMENT & NOTIFICATION OF PRIOR PLANNED
IMPROVEMENTS 5
SOURCES OF REVENUE/BONDS TO BE ISSUED 6
USES OF FUNDS 7
FISCAL DISPARITIES ELECTION 8
ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS 8
SUPPORTING DOCUMENTATION 10
DISTRICT ADMINISTRATION 10
Appendix A: Map of Redevelopment Project No. 1 and the TIF District
Appendix B: Estimated Cash Flow for the District
Appendix C: Findings Including But/For Qualifications
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand)
Modification to the Redevelopment Plan for
Redevelopment Project No. 1
FOREWORD
The following text represents a modification to the Redevelopment Plan for
Redevelopment Project No. 1. This modification represents a continuation of
the goals and objectives set forth in the Redevelopment Plan for
Redevelopment Project No. 1. Generally, the substantive changes include the
establishment of Tax Increment Financing District No. 5 (Sand).
For further information, a review of the Redevelopment Plan for
Redevelopment Project No. 1, is recommended. It is available from the
Community Development Director at the City of Crystal. Other relevant
information is contained in the tax increment financing plans for the tax
increment financing districts located within Redevelopment Project No. 1.
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand) 2
Tax Increment Financing Plan for Tax Increment
Financing District No. 5 (Sand)
FOREWORD
The Economic Development Authority of the City of Crystal (the "EDA"), the
City of Crystal (the "City"), staff and consultants have prepared the following
information to expedite the establishment of Tax Increment Financing District
No. 5 (Sand) (the "District"), a housing tax increment financing district,
located in Redevelopment Project No. 1 (the “Project”).
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."),
Sections 469.001 - 469.047, 469.090 - 469.1082, both inclusive, as amended,
and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "TIF Act"),
to assist in financing public costs related to the Project.
This section contains the Tax Increment Financing Plan (the "TIF Plan") for the
District. Other relevant information is contained in the modification to the
Redevelopment Plan for Redevelopment Project No. 1.
STATEMENT OF OBJECTIVES
The District currently consists of four (4) parcels of land and adjacent roads
and internal rights-of-way. The City approved a lot consolidation plat (Crystal
Housing Group Addition) for the four (4) parcels on September 6, 2022, and it
will be recorded when the developer closes on the acquisition of the parcels.
The District is being created to facilitate the construction of 58 units of
apartments that are affordable to persons and families whose incomes are at
or below 60% of area median income (AMI) in the City. The EDA anticipates
entering into an agreement with Sand Companies, Inc. or an affiliate thereof
(the “Developer”) and development is anticipated to begin in spring of 2023.
This TIF Plan is expected to achieve many of the objectives outlined in the
Redevelopment Plan for the Project.
The activities contemplated in the modification to the Redevelopment Plan
and the TIF Plan do not preclude the undertaking of other qualified
development or redevelopment activities. These activities are anticipated to
occur over the life of the Project and the District.
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand) 3
REDEVELOPMENT PLAN OVERVIEW
Pursuant to the Redevelopment Plan and authorizing state statutes, the EDA
or City is authorized to undertake the following activities in the District:
1. Property to be Acquired - Selected property located within the
District may be acquired by the EDA or City and is further
described in this TIF 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 it 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 street work within the District.
DESCRIPTION OF PROPERTY IN THE DISTRICT AND PROPERTY
TO BE ACQUIRED
The District encompasses all property and adjacent roads rights-of-way and
abutting roadways identified by the parcels listed below.
Parcel number Address Owner
09-118-21-22-0030 5232 W. Broadway W. Broadway Inv.
09-118-21-22-0031 5240 W. Broadway W. Broadway Inv.
09-118-21-22-0032 5248 W/ Broadway Zephyr Land LLC
09-118-21-22-0033 5256 W. Broadway Zephyr Land LLC
The City approved a lot consolidation plat (Crystal Housing Group Addition)
for the four (4) parcels on September 6, 2022, and it will be recorded when
the developer closes on the acquisition of the parcels. Please also see the
map in Appendix A for further information on the location of the District.
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand) 4
The City does not currently intend to acquire any property within the District
but reserves the right to acquire and convey (for full value or a discount) such
property, or appropriate interests therein including interior and adjacent
street rights of way, within the Development District, as depicted on the map
attached in Appendix A hereto, as the City may deem to be necessary or
desirable to assist in the implementation of the Development Program and the
TIF Plan. Any properties identified for acquisition will be acquired by the City
only in order to accomplish one or more of the following: storm sewer
improvements; provide land for needed public streets, utilities and facilities;
and/or carry out land acquisition, site improvements, clearance and/or
development to accomplish the uses and objectives set forth in this TIF Plan.
The Developer has site control of and intends to acquire the property in the
District in connection with the construction of the Development. The City will
not exercise eminent domain powers in the District with respect to property
for the Development.
DISTRICT CLASSIFICATION
The EDA and City, in determining the need to create a tax increment financing
district in accordance with M.S., Sections 469.174 to 469.1794, as amended,
inclusive, find that the District, to be established, is a housing district pursuant
to M.S., Section 469.174, Subd. 11 and M.S., Section 469.1761.
$ The District consists of four (4) parcels
$ The development will consist of 58 units of multi-family rental housing
$ 100% of the units will be occupied by persons and families with incomes at
or below 60% of area median income
Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any
parcel or part of a parcel that qualified under the provisions of M.S., Sections
273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five
calendar years before the filing of the request for certification of the District.
DURATION & FIRST YEAR OF DISTRICT’S TAX INCREMENT
Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the
duration and first year of tax increment of the District must be indicated within
the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the duration of the
District will be 25 years after receipt of the first increment by the EDA or City
(a total of 26 years of tax increment). The EDA or City elects to receive the first
tax increment in 2025, which is no later than four years following the year of
approval of the District.
Thus, it is estimated that the District, including any modifications of the TIF Plan
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand) 5
for subsequent phases or other changes, would terminate after 2050, or when
the TIF Plan is satisfied. The EDA or City reserves the right to decertify the
District prior to the legally required date.
ORIGINAL TAX CAPACITY, TAX RATE & ESTIMATED CAPTURED
NET TAX CAPACITY VALUE/INCREMENT & NOTIFICATION OF
PRIOR PLANNED IMPROVEMENTS
Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1,
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 2022 for taxes
payable 2023.
Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall
certify in each year (beginning in the payment year 2025) 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 previously issued building permits.
In any year in which the current Net Tax Capacity (NTC) 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 2023, assuming the request for certification is made before June 30,
2023. The rates for 2023 were not available at the time the District was
established. The ONTC and the Original Local Tax Rate for the District appear
in the table below.
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
the Project, upon completion of the projects within the District, will annually
approximate tax increment revenues as shown in the table below. The EDA
and City request 100% of the available increase in tax capacity be used for
repayment of the obligations of the EDA or City and current expenditures,
beginning in the tax year payable 2025. The Project Tax Capacity (PTC) listed
is an estimate of values when the projects within the District are completed.
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand) 6
Project estimated Tax Capacity upon complet 113,037
Original estimated Net Tax Capacity 3,998
Fiscal Disparities 0
Estimated Captured Tax Capacity 109,040
Original Local Tax Rate 120.6700%
Pay
2022
Estimated Annual Tax Increment $131,578
Percent Retained by the City 100%
Project Tax Capacity
Note: Tax capacity includes a 3% inflation factor for the duration of the District. The tax
capacity included in this chart is the estimated tax capacity of the District in year 26. The
tax capacity of the District in year one is estimated to be $14,319.
Pursuant to M.S., Section 469.177, Subd. 4, the EDA shall, after a due and
diligent search, accompany its request for certification to the County Auditor
or its notice of the District enlargement pursuant to M.S., Section 469.175,
Subd. 4, with a listing of all properties within the District or area of
enlargement for which building permits have been issued during the eighteen
(18) months immediately preceding approval of the TIF Plan by the
municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor
shall increase the original net tax capacity of the District by the net tax
capacity of improvements for which a building permit was issued.
The City has reviewed the area to be included in the District and found no
parcels for which building permits have been issued during the 18 months
immediately preceding approval of the TIF Plan by the City.
SOURCES OF REVENUE/BONDS TO BE ISSUED
The total estimated tax increment revenues for the District are shown in the
table below:
SOURCES
Tax Increment 2,314,675$
Interest 231,467
TOTAL 2,546,142$
The costs outlined in the Uses of Funds section of this TIF Plan will be
financed primarily through the annual collection of tax increments. The EDA
or City reserves the right to issue bonds (as defined in the TIF Act) or incur
other indebtedness as a result of the TIF Plan. As presently proposed, the
projects within the District will be financed by pay-as-you-go notes and
interfund loans. Any refunding amounts will be deemed a budgeted cost
without a formal modification to this TIF Plan. This provision does not obligate
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand) 7
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 issue bonds secured in whole or in part with tax
increments from the District in a maximum principal amount of $2,546,142.
Such bonds may be in the form of pay-as-you-go notes, revenue bonds or
notes, general obligation bonds, or interfund loans. This estimate of total
bonded indebtedness is a cumulative statement of authority under this TIF
Plan as of the date of approval.
USES OF FUNDS
Currently under consideration for the District is a proposal to facilitate the
construction of 58 units of apartments that are affordable to persons and
families whose incomes are at or below 60% of area median income (AMI).
The EDA and City have determined that it will be necessary to provide
assistance to the project(s) for certain District costs, as described herein.
The EDA has studied the feasibility of the development or redevelopment of
property in and around the District. To facilitate the establishment and
development or redevelopment of the District, this TIF Plan authorizes the use
of tax increment financing to pay for the cost of certain eligible expenses. The
estimate of public costs and uses of funds associated with the District is
outlined in the following table.
USES
Land/Building Acquisition 200,000$
Site Improvements/Preparation 200,000
Affordable Housing 860,235
Utilities 100,000
Other Qualifying Improvements 200,000
Administrative Costs (up to 10%)231,468
PROJECT COSTS TOTAL 1,791,703$
Interest 754,439
PROJECT AND INTEREST COSTS TOTAL 2,546,142$
The total project cost, including financing costs (interest) listed in the table
above, does not exceed the total projected tax increments for the District as
shown in the Sources of Revenue section.
Estimated costs associated with the District are subject to change among
categories without a modification to the TIF Plan. The cost of all activities to
be considered for tax increment financing will not exceed, without formal
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand) 8
modification, the budget above pursuant to the applicable statutory
requirements. The EDA may expend funds for qualified housing activities
outside of the District boundaries.
FISCAL DISPARITIES ELECTION
Pursuant to M.S., Section 469.177, Subd. 3, the EDA or City may elect one of two
methods to calculate fiscal disparities.
The EDA will choose to calculate fiscal disparities by clause b (inside).
ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS
The estimated impact on other taxing jurisdictions assumes that the
redevelopment contemplated by the TIF Plan 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:
Entity
2021/Pay
2022 Total
Net Tax
Capacity
Estimated
Captured Tax
Capacity
(CTC) upon
completion
Percent of
CTC to
Entity Total
Hennepin County 2,139,107,659 109,040 0.0051%
City of Crystal 23,635,755 109,040 0.4613%
ISD 281
(Robbinsdale Area Schools)119,405,401 109,040 0.0913%
Impact on Tax Base
Entity Pay 2022
Extension Rate
Percent of
Total CTC
Potential
Taxes
Hennepin County 38.5350% 31.93% 109,040 $ 42,018
City of Crystal 47.3730% 39.26% 109,040 51,655
ISD 281
(Robbinsdale Area Schools)26.5070% 21.97% 109,040 28,903
Other 8.2550% 6.84% 109,040 9,001
120.6700% 100.00% $ 131,578
Impact on Tax Rates
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand) 9
The estimates listed above display the captured tax capacity when all
construction is completed. The tax rate used for calculations is the Pay 2022
rate. The total net capacity for the entities listed above are based on Pay
2022 figures. The District will be certified under the Pay 2023 rates, which
were unavailable at the time this TIF Plan was prepared.
Pursuant to M.S., Section 469.175, Subd. 2(b):
(1) Estimate of total tax increment. It is estimated that the total amount
of tax increment that will be generated over the life of the District is
$2,314,675;
(2) Probable impact of the District on city provided services and ability
to issue debt. An impact of the District on police protection is
expected. With any addition of new residents or businesses, police
calls for service will be increased. New developments add an
increase in traffic, and additional overall demands to the call load.
The City does not expect that the proposed development, in and of
itself, will necessitate new capital investment in vehicles or facilities.
The probable impact of the District on fire protection is not expected
to be significant. Typically, new buildings generate few calls, if any,
and are of superior construction. The City does not expect that the
proposed development, in and of itself, will necessitate new capital
investment in vehicles or facilities.
The impact of the District on public infrastructure is expected to be
minimal. The development is not expected to significantly impact
any traffic movements in the area. The current infrastructure for
sanitary sewer, storm sewer and water will be able to handle the
additional volume generated from the proposed development. Based
on the development plans, there are no additional costs associated
with street maintenance, sweeping, plowing, lighting and sidewalks.
It is not anticipated that there will be any general obligation debt
issued in relation to this project, therefore there will be no impact on
the City's ability to issue future debt or on the City's debt limit.
(3) Estimated amount of tax increment attributable to school district
levies. It is estimated that the amount of tax increments over the life
of the District that would be attributable to school district levies,
assuming the school district's share of the total local tax rate for all
taxing jurisdictions remained the same, is $508,453;
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand) 10
(4) Estimated amount of tax increment attributable to county levies. It is
estimated that the amount of tax increments over the life of the
District that would be attributable to county levies, assuming the
county's share of the total local tax rate for all taxing jurisdictions
remained the same, is $739,173;
(5) Additional information requested by the county or school district. The
City is not aware of any standard questions in a county or school
district written policy regarding tax increment districts and impact on
county or school district services. The county or school district must
request additional information pursuant to M.S., Section 469.175, Subd.
2(b) within 15 days after receipt of the tax increment financing plan.
No requests for additional information from the county or school
district regarding the proposed development for the District have
been received.
SUPPORTING DOCUMENTATION
Pursuant to M.S., Section 469.175, Subd. 1 (a), clause 7, this TIF 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 (b)(2) and
the findings are required in the resolution approving the District.
(i) In making said determination, reliance has been placed upon (1)
written representation made by the Developer to such effects; (2)
review of the Developer’s proforma; and (3) City staff awareness of
the feasibility of developing the project site within the District, which
is further outlined in the City Council resolution approving the
establishment of the District and Appendix C.
(ii) A comparative analysis of estimated market value both with and
without establishment of the District and the use of tax increments
has been performed. Such analysis is included with the cashflow in
Appendix B 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.
DISTRICT ADMINISTRATION
Administration of the District will be handled by the Community Development
Director.
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand)
Appendix A: Map of Redevelopment Project No. 1 and the TIF
District
City of Crystal
´
0 10.5
Miles
TIF 5
(proposed district)
Key
Proposed TIF District 5
Redevelopment Project Area:
Parcels in Project Area
Project Area Boundary
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand)
Appendix B: Estimated Cash Flow for the District
Sand Company - 3% InflationCity of Crystal, MN 58-Unit Affordable AptASSUMPTIONS AND RATESDistrictType:HousingDistrict Name/Number:County District #:Exempt Class Rate (Exempt)0.00%First Year Construction or Inflation on Value2023Commercial Industrial Preferred Class Rate (C/I Pref.)Existing District - Specify No. Years RemainingFirst $150,0001.50%Inflation Rate - Every Year:3.00%Over $150,0002.00%Interest Rate:3.00%Commercial Industrial Class Rate (C/I)2.00%Present Value Date:1-Aug-24Rental Housing Class Rate (Rental)1.25%First Period Ending1-Feb-25Affordable Rental Housing Class Rate (Aff. Rental)Tax Year District was Certified:Pay 2023First $100,000 0.75%Cashflow Assumes First Tax Increment For Development: 2025 Over $100,000 0.25%Years of Tax Increment 26 Non-Homestead Residential (Non-H Res. 1 Unit)Assumes Last Year of Tax Increment2050First $500,0001.00%Fiscal Disparities Election [Outside (A), Inside (B), or NA]Inside(B)Over $500,0001.25%Incremental or Total Fiscal DisparitiesIncrementalHomestead Residential Class Rate (Hmstd. Res.)Fiscal Disparities Contribution Ratio36.6748% Pay 2022 First $500,0001.00%Fiscal Disparities Metro-Wide Tax Rate132.5960% Pay 2022 Over $500,0001.25%Maximum/Frozen Local Tax Rate: 120.670% Pay 2022 Agricultural Non-Homestead1.00%Current Local Tax Rate: (Use lesser of Current or Max.)120.670% Pay 2022 State-wide Tax Rate (Comm./Ind. only used for total taxes)36.2890% Pay 2022 Market Value Tax Rate (Used for total taxes)0.21608% Pay 2022 BuildingTotal PercentageTax Year Property CurrentClassAfterLandMarketMarket Of Value Used OriginalOriginalTaxOriginalAfterConversionMap IDPIDOwnerAddressMarket ValueValueValue for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap.109-118-21-22-0030 W. Broadway Inv. 5232 W. Broadway146,000146,000100%146,000 Pay 2023 C/I Pref.2,190 Aff. Rental1,095 1209-118-21-22-0031W. Broadway Inv. 5240 W. Broadway131,000131,000100%131,000 Pay 2023 C/I2,620 Aff. Rental983 1309-118-21-22-0032 Zephyr Land LLC 5248 W/ Broadway131,000131,000100%131,000 Pay 2023 C/I Pref.1,965 Aff. Rental983 1409-118-21-22-0033Zephyr Land LLC 5256 W. Broadway125,000125,000100%125,000 Pay 2023 C/I2,500 Aff. Rental938 1533,0000533,000533,0009,2753,998Note:1.Base values are for pay 2023 based upon review of County website on 9-6-2022.2.Located in SD #281 and WS #8Area/ PhaseTax Rates BASE VALUE INFORMATION (Original Tax Capacity)
Sand Company - 3% InflationCity of Crystal, MN 58-Unit Affordable AptEstimatedTaxableTotal Taxable PropertyPercentage Percentage Percentage Percentage First YearMarket Value Market ValueTotalMarketTaxProject Project Tax Completed Completed Completed Completed Full TaxesArea/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./UnitsValueClass Tax Capacity Capacity/Unit 2023202420252026Payable1Aff Apt195,000195,0005811,310,000Aff. Rental 57,275988 25%75%100%100%2027TOTAL11,310,00057,275Subtotal Residential5811,310,00057,275Subtotal Commercial/Ind.000Note:1. Market values are based upon estimates from County Assessor.Total FiscalLocalLocalFiscal State-wide MarketTaxDisparitiesTaxProperty Disparities PropertyValueTotalTaxes PerNew UseCapacity Tax CapacityCapacityTaxesTaxesTaxesTaxesTaxes Sq. Ft./UnitAff Apt57,275057,27569,1140012,37681,4901,405.00TOTAL57,275057,27569,1140012,37681,490Note: 1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, fiscal disparities and other factorswhich cannot be predicted.Total Property Taxes81,490less State-wide Taxes0less Fiscal Disp. Adj.0less Market Value Taxes(12,376)less Base Value Taxes(4,824)Annual Gross TIF 64,290TAX CALCULATIONSPROJECT INFORMATION (Project Tax Capacity) WHAT IS EXCLUDED FROM TIF?
Sand Company - 3% InflationCity of Crystal, MN 58-Unit Affordable AptTAX INCREMENT CASH FLOWProject Original Fiscal CapturedLocal Annual Semi-Annual State Admin. Semi-Annual Semi-Annual PERIOD% of TaxTax Disparities TaxTax Gross Tax Gross Tax AuditoratNet Tax Present ENDING Tax PaymentOTC Capacity Capacity Incremental CapacityRate Increment Increment 0.36%10% Increment Value Yrs. Year Date----02/01/25100% 14,319 (3,998) - 10,321 120.670% 12,455 6,227 (22)(620)5,584 5,421 0.5 2025 08/01/25100% 14,319 (3,998) - 10,321 120.670% 12,455 6,227 (22)(620)5,584 10,761 1 2025 02/01/26100% 42,956 (3,998) - 38,959 120.670% 47,012 23,506 (85)(2,342)21,079 30,621 1.5 2026 08/01/26100% 42,956 (3,998) - 38,959 120.670% 47,012 23,506 (85)(2,342)21,079 50,188 2 2026 02/01/27100% 57,275 (3,998) - 53,278 120.670% 64,290 32,145 (116) (3,203)28,826 76,551 2.5 2027 08/01/27100% 57,275 (3,998) - 53,278 120.670% 64,290 32,145 (116) (3,203)28,826 102,524 3 2027 02/01/28100% 58,993 (3,998) - 54,996 120.670% 66,363 33,182 (119) (3,306)29,756 128,939 3.5 2028 08/01/28100% 58,993 (3,998) - 54,996 120.670% 66,363 33,182 (119) (3,306)29,756 154,964 4 2028 02/01/29100% 60,763 (3,998) - 56,766 120.670% 68,499 34,249 (123) (3,413)30,714 181,428 4.5 2029 08/01/29100% 60,763 (3,998) - 56,766 120.670% 68,499 34,249 (123) (3,413)30,714 207,502 5 2029 02/01/30100% 62,586 (3,998) - 58,588 120.670% 70,699 35,349 (127) (3,522)31,700 234,016 5.5 2030 08/01/30100% 62,586 (3,998) - 58,588 120.670% 70,699 35,349 (127) (3,522)31,700 260,137 6 2030 02/01/31100% 64,464 (3,998) - 60,466 120.670% 72,964 36,482 (131) (3,635)32,716 286,697 6.5 2031 08/01/31100% 64,464 (3,998) - 60,466 120.670% 72,964 36,482 (131) (3,635)32,716 312,865 7 2031 02/01/32100% 66,397 (3,998) - 62,400 120.670% 75,298 37,649 (136) (3,751)33,762 339,471 7.5 2032 08/01/32100% 66,397 (3,998) - 62,400 120.670% 75,298 37,649 (136) (3,751)33,762 365,683 8 2032 02/01/33100% 68,389 (3,998) - 64,392 120.670% 77,702 38,851 (140) (3,871)34,840 392,333 8.5 2033 08/01/33100% 68,389 (3,998) - 64,392 120.670% 77,702 38,851 (140) (3,871)34,840 418,588 9 2033 02/01/34100% 70,441 (3,998) - 66,444 120.670% 80,177 40,089 (144) (3,994)35,950 445,280 9.5 2034 08/01/34100% 70,441 (3,998) - 66,444 120.670% 80,177 40,089 (144) (3,994)35,950 471,577 10 2034 02/01/35100% 72,554 (3,998) - 68,557 120.670% 82,727 41,364 (149) (4,121)37,093 498,310 10.5 2035 08/01/35100% 72,554 (3,998) - 68,557 120.670% 82,727 41,364 (149) (4,121)37,093 524,648 11 2035 02/01/36100% 74,731 (3,998) - 70,733 120.670% 85,354 42,677 (154) (4,252)38,271 551,420 11.5 2036 08/01/36100% 74,731 (3,998) - 70,733 120.670% 85,354 42,677 (154) (4,252)38,271 577,796 12 2036 02/01/37100% 76,973 (3,998) - 72,975 120.670% 88,059 44,030 (159) (4,387)39,484 604,607 12.5 2037 08/01/37100% 76,973 (3,998) - 72,975 120.670% 88,059 44,030 (159)(4,387)39,484 631,021 13 2037 02/01/38100% 79,282 (3,998) - 75,284 120.670% 90,846 45,423 (164) (4,526)40,733 657,868 13.5 2038 08/01/38100% 79,282 (3,998) - 75,284 120.670% 90,846 45,423 (164) (4,526)40,733 684,319 14 2038 02/01/39100% 81,660 (3,998) - 77,663 120.670% 93,716 46,858 (169) (4,669)42,020 711,202 14.5 2039 08/01/39100% 81,660 (3,998) - 77,663 120.670% 93,716 46,858 (169) (4,669)42,020 737,688 15 2039 02/01/40100% 84,110 (3,998) - 80,113 120.670% 96,672 48,336 (174) (4,816)43,346 764,605 15.5 2040 08/01/40100% 84,110 (3,998) - 80,113 120.670% 96,672 48,336 (174) (4,816)43,346 791,125 16 2040 02/01/41100% 86,634 (3,998) - 82,636 120.670% 99,717 49,858 (179) (4,968)44,711 818,076 16.5 2041 08/01/41100% 86,634 (3,998) - 82,636 120.670% 99,717 49,858 (179) (4,968)44,711 844,628 17 2041 02/01/42100% 89,233 (3,998) - 85,235 120.670% 102,853 51,427 (185) (5,124)46,117 871,611 17.5 2042 08/01/42100% 89,233 (3,998) - 85,235 120.670% 102,853 51,427 (185) (5,124)46,117 898,195 18 2042 02/01/43100% 91,910 (3,998) - 87,912 120.670% 106,083 53,042 (191) (5,285)47,566 925,209 18.5 2043 08/01/43100% 91,910 (3,998) - 87,912 120.670% 106,083 53,042 (191) (5,285)47,566 951,823 19 2043 02/01/44100% 94,667 (3,998) - 90,669 120.670% 109,411 54,705 (197) (5,451)49,058 978,867 19.5 2044 08/01/44100% 94,667 (3,998) - 90,669 120.670% 109,411 54,705 (197) (5,451)49,058 1,005,511 20 2044 02/01/45100% 97,507 (3,998) - 93,509 120.670% 112,838 56,419 (203) (5,622)50,594 1,032,583 20.5 2045 08/01/45100% 97,507 (3,998) - 93,509 120.670% 112,838 56,419 (203) (5,622)50,594 1,059,255 21 2045 02/01/46100% 100,432 (3,998) - 96,435 120.670% 116,368 58,184 (209) (5,797)52,177 1,086,355 21.5 2046 08/01/46100% 100,432 (3,998) -96,435 120.670% 116,368 58,184 (209) (5,797)52,177 1,113,055 22 2046 02/01/47100% 103,445 (3,998) - 99,448 120.670% 120,003 60,002 (216) (5,979)53,807 1,140,182 22.5 2047 08/01/47100% 103,445 (3,998) - 99,448 120.670% 120,003 60,002 (216) (5,979)53,807 1,166,908 23 2047 02/01/48100% 106,548 (3,998) -102,551 120.670% 123,748 61,874 (223) (6,165)55,486 1,194,061 23.5 2048 08/01/48100% 106,548 (3,998) -102,551 120.670% 123,748 61,874 (223) (6,165)55,486 1,220,813 24 2048 02/01/49100% 109,745 (3,998) -105,747 120.670% 127,605 63,803 (230) (6,357)57,216 1,247,990 24.5 2049 08/01/49100% 109,745 (3,998) -105,747 120.670% 127,605 63,803 (230) (6,357)57,216 1,274,766 25 2049 02/01/50100% 113,037 (3,998) -109,040 120.670% 131,578 65,789 (237) (6,555)58,997 1,301,968 25.5 2050 08/01/50100% 113,037 (3,998) -109,040 120.670% 131,578 65,789 (237) (6,555)58,997 1,328,768 26 2050 02/01/51 Total2,323,038 (8,363) (231,467) 2,083,207 Present Value From 08/01/2024 Present Value Rate 3.00%1,481,743 (5,334) (147,641) 1,328,768
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand)
Appendix C: Findings Including But/For Qualifications
The reasons and facts supporting the findings for the adoption of the Tax
Increment Financing Plan for Tax Increment Financing District No. 5 (Sand), as
required pursuant to Minnesota Statutes, (M.S.), Section 469.175, Subdivision 3
are as follows:
1. Finding that Tax Increment Financing District No. 5 (Sand) is a housing
district as defined in M.S., Section 469.174, Subd. 11.
Tax Increment Financing District No. 5 (Sand) consists of four (4)
parcels. The City approved a lot consolidation plat (Crystal Housing
Group Addition) for the four (4) parcels on September 6, 2022, and it
will be recorded when the developer closes on the acquisition of the
parcels. The development will consist of the construction of 58 units of
apartments that are affordable to persons and families whose incomes
are at or below 60% of area median income (AMI), all or a portion of
which will receive tax increment assistance and will meet income
restrictions described in M.S., Section 469.1761. As required by the TIF
Act, at least 100% of the units receiving assistance will be occupied by
individuals and families whose incomes are at or below 60% of area
median income.
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.
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 development proposed in the TIF Plan is a housing
district that meets the City's objectives for development and
redevelopment. The cost of developing affordable housing makes this
development infeasible without City assistance. Due to decreased rental
income from the affordable units, there is insufficient cash flow to pay
operating expenses, service the debt, and repay the deferred developer
fee. This leaves a gap in the funding for the project and makes this
housing development feasible only through assistance, in part, from tax
increment financing. The Developer was asked for and provided a letter
and a proforma as justification that the Developer would not have gone
forward without public financial assistance.
The increased market value of the site that could reasonably be
expected to occur without the use of tax increment financing would be
Economic Development Authority of the City of Crystal
Tax Increment Financing District No. 5 (Sand)
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 District
permitted by the TIF Plan: This finding is justified on the grounds that
the cost to construct affordable housing and the corresponding
reduced rents required have made development infeasible without tax
increment assistance. These parcels have been vacant since 2007, and
this is the only development proposal that has come forward. The City
reasonably determines that no other development of similar scope is
anticipated on this site without substantially similar assistance being
provided to the development.
3. Finding that the TIF Plan for Tax Increment Financing District No. 5
(Sand) conforms to the general plan for the development or
redevelopment of the municipality as a whole.
The City Council reviewed the TIF Plan and found that the TIF Plan
conforms to the general development plan of the City.
4. Finding that the TIF Plan for Tax Increment Financing District No. 5
(Sand) will afford maximum opportunity, consistent with the sound
needs of the City as a whole, for the development or redevelopment of
Redevelopment Project No. 1 by private enterprise.
Through the implementation of the TIF Plan, the City will provide an
impetus for residential development, which is desirable or necessary for
increased population and an increased need for life-cycle housing within
the City. In addition, the proposed development will increase the
taxable market valuation in the City.
CR150\225\833507.v1
WHEREAS, the City of Crystal, Minnesota (the “City”) and the Economic Development Authority
of the City of Crystal, Minnesota (the “Authority”) have previously established Redevelopment Project
No. 1 (the “Project”) within the City and have caused to be created a Redevelopment Plan (the
“Redevelopment Plan”) therefor, pursuant to Minnesota Statutes, Sections 469.001 through 469.047, as
amended, and Minnesota Statutes, Sections 469.090 through 469.1082, as amended; and
WHEREAS, the City and the Authority have proposed to approve a modification to the
Redevelopment Plan for the Project (the “Redevelopment Plan Modification”) and a tax increment
financing plan (the “TIF Plan”) for Tax Increment Financing District No. 5 (Sand) (a housing district) (the
“TIF District”), within the Project, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as
amended (the “TIF Act”), all as described in a plan document presented to the Board of Commissioners of
the Authority (the “Board”) on the date hereof; and
WHEREAS, pursuant to Section 469.175, subdivision 2a of the TIF Act, notice of the proposed
TIF District was presented to the commissioner of Hennepin County, Minnesota (the “County”)
representing the area to be included in the TIF District at least 30 days before the publication of the notice
of public hearing; and
WHEREAS, pursuant to Section 469.175, subdivision 2 of the TIF Act, the proposed
Redevelopment Plan Modification and the TIF Plan and the estimates of the fiscal and economic
implications of the TIF Plan were presented to the Clerk of the Board of Education of Independent School
District No. 281 (Robbinsdale Area Schools) and to the Auditor/Treasurer of the County (the “County
Auditor/Treasurer”) at least 30 days before the date of the required public hearing; and
WHEREAS, the City Council of the City will hold a duly noticed public hearing on December 6,
2022 on the Redevelopment Plan Modification and establishment of the TIF District and is expected to
approve the creation of the TIF District and the associated TIF Plan following such public hearing; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic
Development Authority of the City of Crystal, Minnesota as follows:
1.The boundaries of the Project are not being expanded and the Redevelopment Plan is not
being modified other than to incorporate the establishment of the TIF District therein and therefore the
Board reaffirms the findings and determinations originally made in connection with the establishment of
the Project area and the adoption of the Redevelopment Plan therefor. The Board hereby finds that (a) the
land within the Project would not be available for development or redevelopment without the public
intervention and financial assistance to be sought under the Redevelopment Plan Modification; (b) the
Redevelopment Plan Modification will afford maximum opportunity, consistent with the needs of the City
as a whole, for the development of the Project area by private enterprise; and (c) the Redevelopment Plan
Modification conforms to the general plan for the development of the City as a whole, and otherwise
ATTACHMENT 4
ECONOMIC DEVELOPMENT AUTHORITY OF THE
CITY OF CRYSTAL, MINNESOTA
RESOLUTION NO. 2022-06
APPROVING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO. 1 AND A TAX INCREMENT FINANCING
PLAN RELATING TO THE ESTABLISHMENT OF TAX INCREMENT
FINANCING DISTRICT NO. 5 (SAND)
CR150\225\833507.v1
promote certain public purposes and accomplish certain objectives as specified in the Redevelopment Plan
Modification, including without limitation the development of affordable housing within the City. The
purposes and development activities set forth in the Redevelopment Plan Modification, are hereby
expanded to include all development and redevelopment activities occurring within the TIF District.
2. The TIF District is in the public interest and is a “housing district” within the meaning of
Section 469.174, subdivision 11 of the TIF Act, because it consists of a project or portions of a project
intended for occupancy, in part, by persons or families of low and moderate income as defined in
Chapter 462A, Title II of the National Housing Act of 1934; the National Housing Act of 1959; the United
States Housing Act of 1937, as amended; Title V of the Housing Act of 1949, as amended; and any other
similar present or future federal, state or municipal legislation or the regulations promulgated under any of
those acts. No more than 20% of the square footage of buildings that receive assistance from tax increments
will consist of commercial, retail or other nonresidential uses. The Authority hereby finds that the TIF
District is in the public interest and that the establishment of the TIF District and adoption of the TIF Plan
will help provide increased housing opportunities in the City, and thereby serves a public purpose
3. Subject to approval by the City Council, the Redevelopment Plan Modification, the
establishment of the TIF District, and the TIF Plan for the TIF District are hereby approved.
4. The Board hereby finds that the TIF Plan and the Modification to the Redevelopment Plan
will promote the public purposes and accomplish the objectives set forth therein; the Board makes all the
findings in the Modification to the Redevelopment Plan and the TIF Plan and the findings set forth in the
Modification to the Redevelopment Plan and the TIF Plan, which are incorporated herein by reference.
5. Authority staff is hereby authorized and directed to file a request for certification of the
TIF District with the County Auditor/Treasurer and to file a copy of the TIF Plan with the Minnesota
Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act.
6. The County Auditor/Treasurer is requested to certify the original net tax capacity of the
TIF District, as described in the TIF Plan, and to certify in each year thereafter the amount by which the
original net tax capacity has increased or decreased.
7. Authority staff, consultants, and legal counsel are authorized to take all actions necessary
to implement the TIF Plan and to negotiate, draft, prepare and present to the Board for its consideration all
further plans, resolutions, documents, and contracts necessary for this purpose. Approval of the TIF Plan
does not constitute approval of any project or a development agreement with any developer.
Adopted by the Board of Commissioners of the Economic Development Authority of the City of Crystal,
Minnesota this 15th day of November, 2022.
Brendan Banks
President
ATTEST:
Kim Therres
Executive Director
Page 1 of 1
___________________________________________________________________________
FROM: John Sutter, Community Development Director
DATE: November 10, 2022
TO: Kim Therres, Executive Director (for November 15 EDA meeting)
SUBJECT: Consider a resolution approving an interfund loan for Tax Increment
Financing District No. 5 (Sand), a housing district located at 5240 West
Broadway
When approving the creation of a TIF district, it is best practice to authorize an interfund loan for
the purpose of the EDA and city to recoup costs for annual reporting and other expenses related
to administration of the TIF district.
Because the first increment from District No. 5 (Sand) will not be collected until 2025, the
interfund loan uses the EDA fund (0220) to pay those TIF-eligible administrative costs until
sufficient increment is received, at which time the TIF fund will repay the EDA fund, including
interest at 4%.
Please note that the interfund loan is not for any of the developer’s costs. The developer has
paid a TIF application fee and provided an escrow to cover EDA consultant and legal fees for
preparation of the TIF plan, resolutions, agreements, etc.
REQUESTED EDA ACTION
Adoption of the attached resolution authorizing an interfund loan.
EDA STAFF REPORT
5240 West Broadway
Resolution approving TIF Interfund Loan
CR150-225-837704.v1
ECONOMIC DEVELOPMENT AUTHORITY OF THE
CITY OF CRYSTAL, MINNESOTA
RESOLUTION NO. 2022-07
AUTHORIZING INTERNAL LOAN FOR ADVANCE OF CERTAIN COSTS IN
CONNECTION WITH TAX INCREMENT FINANCING DISTRICT NO. 5
(SAND)
WHEREAS, the City of Crystal, Minnesota (the “City”) and the Economic Development
Authority of the City of Crystal, Minnesota (the “Authority”) intend to establish Tax Increment Financing
District No. 5 (Sand) (the “TIF District”), a housing district within Redevelopment Project No. 1 in the
City, pursuant to Minnesota Statutes, Sections 469.174 through 469.1794, as amended (the “TIF Act”);
and
WHEREAS, the City and the Authority may incur certain costs related to the TIF District which
costs may be financed on a temporary basis from available City or Authority funds; and
WHEREAS, pursuant to Section 469.178, subdivision 7 of the TIF Act, the City and the
Authority are authorized to advance or loan money from any fund from which such advances may be
legally made in order to finance expenditures that are eligible to be paid with tax increments under the
TIF Act; and
WHEREAS, the Authority has determined to pay for certain administrative costs related to the
TIF District (the “Qualified Costs”), which costs may be financed on a temporary basis from City or
Authority funds available for such purposes; and
WHEREAS, in order to finance the Qualified Costs, the Authority is requesting that the Authority
provide funds in the amount of up to $25,000 to the Authority through an interfund loan from the EDA
Fund (0220) or any available fund of the Authority or other available sources (the “Interfund Loan”) in
accordance with the terms hereof; and
WHEREAS, the Authority intends to reimburse itself for all or a portion of the Qualified Costs
from tax increments derived from the property within the TIF District or from other available sources in
accordance with the terms of this resolution; and
WHEREAS, on December 6, 2022, the City Council will consider the establishment of the TIF
District after a duly noticed public hearing; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic
Development Authority of the City of Crystal, Minnesota as follows:
1. The Interfund Loan shall be made in the amount of up to $25,000 from the Authority’s
EDA Fund (0220), or any other fund designated by the Authority’s Assistant Treasurer.
2. Subject to approval of the creation of the TIF District by the City Council, the Interfund
Loan is repayable solely from and to the extent that Available Tax Increment is available. “Available Tax
Increment” means, on each Payment Date (as defined herein), all of the tax increment generated in the
preceding six (6) months with respect to the property within the TIF District and remitted to the Authority
by Hennepin County, Minnesota, all in accordance with the TIF Act. Payments on the Interfund Loan are
2
CR150-225-837704.v1
on parity with any other outstanding or future interfund loans secured in whole or in part with Available
Tax Increment.
3. Provided that there is Available Tax Increment to repay the Interfund Loan principal and
interest (the “Payments”) on the Interfund Loan shall be paid semiannually on February 1 and August 1
(each a “Payment Date”), commencing on the first Payment Date after the advance of the Interfund Loan.
Payments shall continue until the earlier of (a) the date the principal and accrued interest of the Interfund
Loan is paid in full, or (b) the date of last receipt of tax increment from the TIF District. Payments on the
Interfund Loan will be made in the amount and only to the extent of Available Tax Increment. Payments
shall be applied first to accrued interest, and then to unpaid principal.
4. The Interfund Loan shall bear interest at the Authority’s then current internal rate of
return on the principal amount advanced, accruing from the date of each initial expenditure; provided,
however that the maximum rate of interest permitted to be charged is limited to the greater of the rates
specified under Minnesota Statutes, Section 270C.40 and Section 549.09 as of the date the loan or
advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as
the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to
time adjusted. The interest rate shall be 4.0% and will not fluctuate.
5. The principal sum and all accrued interest payable under the Interfund Loan is prepayable
in whole or in part at any time by the Authority without premium or penalty. No partial prepayment shall
affect the amount or timing of any other regular payment otherwise required to be made under any
interfund loan.
6. The Interfund Loan is evidence of an internal borrowing by the Authority in accordance
with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable solely from
Available Tax Increment pledged to the payment thereof under this resolution. The Interfund Loan shall
not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision
thereof, including, without limitation, Hennepin County, Minnesota. Neither the State of Minnesota, nor
any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund
Loan or other costs incident hereto except out of Available Tax Increment. The Authority and the City
shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon,
which may remain unpaid after the final Payment Date.
7. The Authority may amend the terms of the Interfund Loan at any time by resolution of
the Board of Commissioners.
Adopted by the Board of Commissioners of the Economic Development Authority of the City of Crystal,
Minnesota this 15th day of November, 2022.
Brendan Banks
President
ATTEST:
Kim Therres
Executive Director
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