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2022.12.06 Council Meeting Packet 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Dec. 2, 2022 City Council Meeting Schedule Tuesday, Dec. 6, 2022 Time Meeting Location 6:30 p.m. City Council work session to discuss: 1. Constituent issues update. 2. New business. 3. Announcements. Council Chambers/ Zoom 6:40 p.m. Economic Development Authority meeting Council Chambers/ Zoom 7 p.m. City Council meeting Council Chambers/ Zoom Immediately following the City Council 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, Economic Development Authority meeting, City Council meeting, and continuation of City Council work session, if necessary. Time: Dec. 6, 2022 6:30 p.m. Central Time (US and Canada) Join Zoom Meeting https://us02web.zoom.us/j/83865181756?pwd=aU1NcXBuc0ZIMTBMRGgxbWNwTWpJQT09 Meeting ID: 838 6518 1756 Passcode: 414141 One tap mobile +13092053325,,83865181756#,,,,*414141# US +13126266799,,83865181756#,,,,*414141# US (Chicago) Dial by your location +1 309 205 3325 US +1 719 359 4580 US +1 312 626 6799 US (Chicago) +1 253 205 0468 US +1 646 931 3860 US +1 253 215 8782 US (Tacoma) +1 929 205 6099 US (New York) +1 346 248 7799 US (Houston) +1 301 715 8592 US (Washington DC) +1 360 209 5623 US +1 305 224 1968 US +1 386 347 5053 US +1 669 444 9171 US +1 507 473 4847 US +1 669 900 6833 US (San Jose) +1 564 217 2000 US +1 689 278 1000 US Find your local number: https://us02web.zoom.us/u/kcxs9DhbJv 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. 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Dec. 2, 2022 City Council Work Session Agenda Tuesday, Dec. 6, 2022 at 6:30 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, Dec. 6, 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 Economic Development Authority meeting at 6:40 p.m., the work session will be continued and resumed immediately following the City Council 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, Dec. 6, 2022. I. Attendance Council members Staff ____ Cummings ____ Therres ____ Kiser ____ Gilchrist ____ LaRoche ____ Elholm ____ Parsons ____ Larson ____ Adams ____ Ray ____ Banks ____ Revering ____ Budziszewski ____ Sutter ____ Yang II. Agenda The purpose of the work session is to discuss the following agenda items: 1. Constituent issues.* 2. New business.* 3. 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. AGENDA ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL • REGULAR MEETING • TUESDAY, DECEMBER 6, 2022 6:40 P.M. CRYSTAL CITY HALL COUNCIL CHAMBERS 1. Call to order * 2. Roll call * 3. Approval of minutes from November 15, 2022 regular meeting 4. Consider a resolution adopting a 2023 EDA budget and HRA tax levy 5. Consider approval of a contract with Center for Energy and Environment for administration of home improvement programs from July 1, 2023 - June 30, 2024 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 November 15, 2022 1. Call to Order President Banks called the meeting of the Economic Development Authority of the City of Crystal (EDA) to order at 7:43 p.m. 2. Roll Call Upon call of the roll, the following Commissioners were present: Jim Adams, Brendan Banks, John Budziszewski, David Cummings, Therese Kiser and Nancy LaRoche. The following staff were present: Executive Director Kim Therres, Deputy Executive Director John Sutter and City Attorney Troy Gilchrist. 3. Approval of Minutes Moved by Commissioner LaRoche (Kiser) to approve the minutes from the October 18, 2022 regular meeting. Motion carried. 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. Staff presented the report and requested EDA approval of the resolution. Keith Dahl of Ehlers answered questions from the board. Moved by Commissioner Budziszewski (Kiser) to adopt the 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. Motion carried 4-2 with Commissioners Banks, Budziszewski, Cummings and Kiser voting Aye and Commissioners Adams and LaRoche voting Nay. Page 2 of 3 5. Consider a resolution approving an interfund loan for Tax Increment Financing District No. 5 (Sand), a housing district located at 5240 West Broadway. Staff requested EDA approval of the resolution. Moved by Commissioner Budziszewski (Kiser) to adopt the resolution approving an interfund loan for Tax Increment Financing District No. 5 (Sand), a housing district located at 5240 West Broadway. Motion carried. 6. Property Status Update Staff updated the board on the anticipated opening of the Lucky Pearl restaurant at 5600 56th Avenue North (Bass Lake Road), construction progress at several commercial locations, potential new businesses and development prospects, and plans to promote Small Business Saturday and the Love Local campaign during the holiday season. 7. Other Business There was no other business. 8. Adjournment Moved by Commissioner Budziszewski (LaRoche) to adjourn the meeting. Motion carried. The meeting adjourned at 8:16 p.m. Page 3 of 3 These minutes of the November 15, 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: December 1, 2022 TO: Kim Therres, Executive Director (for December 6 EDA meeting) SUBJECT: Consider a resolution adopting a 2023 HRA tax levy and EDA budget As part of the annual budgeting process, the EDA formally requests a Housing and Redevelopment Authority tax levy which would comprise most of its funding. The 2022 levy was $310,000. On Sep. 6, 2022 the EDA adopted a resolution approving a preliminary 2023 budget and $316,200 tax levy, which is a 2% increase from 2022. At this time, EDA action is necessary to adopt the final 2023 EDA budget and 2023 HRA tax levy for City Council consideration. The amounts are unchanged from the preliminary budget and levy approved in September. Budget Summary: 2020 2021 2022 2023 Actual Actual Adopted Proposed Revenue 383,728 311,720 318,000 1 357,034 1 of which, levy is 282,744 300,000 310,000 316,200 Expenditures 389,119 526,914 2 384,390 357,923 Cash Balance at End of Year 3 2,140,093 2,053,388 1,986,998 est. 1,949,029 est. 1 2022 adopted and 2023 proposed revenue does not include any land sale proceeds, as that varies from year to year depending on market conditions and the characteristics of each parcel. 2 2021 expenditures were elevated due to (1) an expenditure of $64,170 to finance a fire sprinkler system at 5600 56th and (2) $67,000 of unanticipated expenditures for home improvement grants. The fire sprinkler financing is being repaid over five years, and home improvement grant expenditures are being brought back in line with the budget due to program changes that began in 2022. 3 Cash balances are from the Long Term Plan and may not track exactly with revenue and expenditures. EDA STAFF REPORT Proposed 2023 HRA Tax Levy and EDA Budget Page 2 of 2 Anticipated 2023 EDA activities: • One or more redevelopment projects in the Town Center redevelopment area • Expand branding and beautification efforts • Sale of properties currently being held by the EDA (proceeds increase the fund balance) • Home improvement grants for qualifying households located outside the redevelopment project area (not eligible for TIF funds) REQUESTED EDA ACTION Adopt the attached resolution approving the 2023 EDA Budget and HRA tax levy, and requesting their approval by the City Council. ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL HENNEPIN COUNTY STATE OF MINNESOTA RESOLUTION NO. 2022 - 08 ADOPTING A 2023 BUDGET AND PROPERTY TAX LEVY AND REQUESTING THEIR APPROVAL BY THE CITY COUNCIL WHEREAS, the Economic Development Authority of the City of Crystal (the “EDA”) undertakes redevelopment and housing activities in the City of Crystal, Minnesota (the “City”); and WHEREAS, pursuant to authority granted by Minnesota Statutes, Section 469.02 and the enabling resolution of the EDA, the EDA exercises all of the powers of a housing and redevelopment authority (“HRA”) as described in Minnesota Statues, Section 469.001 to 469.047 (the “Act”); and WHEREAS, under Section 469.033 Subdivision 6 of the Act, an HRA is authorized to levy and collect special benefit taxes on all taxable property under the jurisdiction of the HRA, that is, property in the City; and WHEREAS, the maximum permitted HRA levy is $501,232 which is calculated at 0.0185 percent of the estimated market value of the property in the City. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of Crystal as follows: 1. The EDA hereby adopts a 2023 budget for housing and redevelopment in the amount of $357,923. 2. The EDA hereby adopts a 2023 property tax levy of $316,200 for the purpose of funding the adopted budget in conformance with Section 469.033, Subdivision 6 of Minnesota Statutes. 3. The Executive Director is authorized and directed to transmit a certified copy of this Resolution to the City Council of the City of Crystal for its consent and approval as provided by Section 469.033 of the Act and for certification to the Property Tax Manager of Hennepin County. Adopted this 6th day of December, 2022. _______________________________ Brendan Banks, President _______________________________ Kim Therres, Executive Director Page 1 of 3 __________________________________________________________________________ FROM: John Sutter, Community Development Director DATE: December 1, 2022 TO: Kim Therres, Executive Director (for December 6 EDA meeting) SUBJECT: Consider approval of a contract with Center for Energy and the Environment for administration of home improvement programs from July 1, 2023 - June 30, 2024 The EDA contracts with Center for Energy and Environment (CEE) to administer our home improvement grant program. The current contract period ends on June 30, 2023. The next contract period is July 1, 2023 - June 30, 2024. The program budget would be $306,000 which is consistent with the EDA budgets for 2023-2024. The only other changes would be in the way administrative fees are calculated, due to CEE’s personnel costs and other expenses having increased (as they have for everyone). Currently the EDA pays CEE an annual lump sum of $2,500 plus 15% of the grant amount. The EDA also pays $100 for each post-installation inspection when the work does not require a permit and the city is therefore not already inspecting the work to verify that it has been completed before the grant is paid. The proposed contract would have an annual lump sum of $5,000 plus $500 per grant regardless of the grant amount. The post-installation inspection fee would increase to $150 but we will start doing those in-house so we no longer have to pay those fees. If the EDA is uncomfortable with the slightly increased administrative costs, one solution would be to increase the minimum project from $3,000 to $4,000. This would eliminate the smallest grants for which the administrative fee will be almost as much as the grant. Staff estimates that a $4,000 minimum project requirement would eliminate 8 grants per year and reduce the administrative fees by $4,000 per year. EDA STAFF REPORT Approve Home Improvement Program Contract for July 1, 2023 - June 30, 2024 Page 2 of 3 Comparison of Administrative Fees: Current Proposed Proposed (Annualized estimates based on Contract Contract Contract actuals from 4/1 - 9/30/2022) $3,000 min. $3,000 min. $4,000 min. project size project size project size Annual Lump Sum Admin Fee $ 2,500 $ 5,000 $ 5,000 Admin Fees based on Grants $ 45,168 $ 50,000 $ 46,000 Post-Installation Inspections $ 2,000 $ 0 $ 0 Total amount of Admin Fees $ 49,668 $ 56,000 $ 51,000 Admin Fees as % of Program Cost 15.8% 17.5% 16.2% Approximately 90% of the funding will come from the TIF fund and 10% from the EDA/HRA fund. Staff estimates show sufficient TIF district revenue and fund balance to continue the program through 2028, after which alternate funding sources or program changes will be necessary. Please see charts below and on the next page. EDA ACTION REQUESTED Staff requests EDA approval of the attached agreement with Center for Energy and Environment for administration of home improvement programs for the period July 1, 2023 through June 30, 2024. The motion should include whether to keep the minimum project size at $3,000 (est. 17.5% admin cost) or increase it to $4,000 (est. 16.2% admin cost). Page 3 of 3 CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #4073 Page 1 HOME IMPROVEMENT PROGRAM ORIGINATION AGREEMENT This HOME IMPROVEMENT PROGRAM ORIGINATION AGREEMENT (“Agreement”), dated this _____ day of _____________________, 20____, is made by and between the ECONOMIC DEVELOPMENT AUTHORITY in and for the City of Crystal, with offices at 4141 Douglas Dr N, Crystal, MN 55422 (“Authority”), and CENTER FOR ENERGY AND ENVIRONMENT, with offices at 212 3rd Avenue North, Suite 560, Minneapolis, Minnesota 55401 (“CEE”). RECITALS A. The Authority has a need for certain professional services and desires to retain CEE to provide said services, all subject to the terms and conditions contained in this Agreement. B. CEE is qualified to provide the desired professional services and desires to provide said services for the Authority, all subject to the terms and conditions contained in this Agreement. NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained in this Agreement, the parties agree as follows: 1. Services/Scope of Work 1.1 CEE shall in conjunction with the Authority develop and deliver the City of Crystal Home Improvement Program (hereinafter the “Program”) and more fully described in Exhibit A1 attached hereto. All activities delivered under the Program shall be coordinated with the Authority’s designated Community Development Director, John Sutter. 1.2 CEE shall assist the Authority staff in marketing the Program. This will include being on the CEE website and creating an information sheet about the loan program. 1.3 The funding source is exclusively from the Authority. 2. Compensation 2.1 The Authority shall compensate CEE for services provided under this agreement according to the schedule in Exhibit B1 attached hereto. The Authority shall compensate CEE only for services completed. 2.2 Upon request, CEE will provide additional marketing services. Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to marketing. CEE will be reimbursed by the Authority for any non-labor, out-of-pocket expenses, relating to these services on a dollar-for-dollar basis with no mark-up. CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #4073 Page 2 2.3 CEE shall invoice the Authority not more than two times each month. The Authority shall pay CEE within 20 days of receipt of the invoice. 3. CLIENT’s Obligations 3.1 If requested by CEE, the Authority shall make reasonable efforts to respond promptly to requests from CEE for information and approvals regarding the services to be provided under this Agreement. 3.2 If requested by CEE, the Authority shall make reasonable efforts to obtain information and or permission for access from clients which may be necessary for CEE to provide the services under this Agreement. 3.3 The Authority shall provide sufficient funding to fund eligible Authority funded loans. The Authority shall determine the amount of funds allocated to the Program. 3.4 The Authority shall establish eligibility for the Program and shall provide these criteria in writing to CEE prior to commencement of any marketing efforts. 3.5 The Authority shall make reasonable efforts to respond promptly to requests from CEE for information and approvals regarding the services to be provided under this Agreement. 4. CEE’s Obligations 4.1 CEE shall use its best efforts to provide services under this Agreement in a professional manner consistent with the care and skill used by reputable members of CEE’s profession. 4.2 CEE, and all of its employees or agents, shall comply with all statutes, ordinances, rules, regulations and other laws applicable to the provision of services under this Agreement. 4.3 CEE shall secure all permits and licenses required for performance of the services under this Agreement. 4.4 CEE shall not engage in discriminatory employment practices against any employee or applicant for employment and shall in all respects comply with all federal, state and local laws, regulations and orders, including without limitation, Chapter 363 of the Minnesota Statutes, as amended from time to time. Failure to comply with the provisions hereof shall be deemed a material default under this Agreement. 5. Term and Termination CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #4073 Page 3 5.1 Unless earlier terminated as provided in the following paragraphs, this Agreement shall become effective on 7/1/2023 and continue through 6/30/2024. 5.2 This Agreement may be terminated by either party, for any reason or no reason, immediately upon written notice to the other party. In the event this Agreement is terminated by CEE prior to the expiration of the term set forth in paragraph 5.1, the Authority shall compensate CEE for all services delivered up the date of termination and CEE shall provide the Authority with such information as the Authority may request regarding the status of the Program. 5.3 Any termination of this Agreement shall not release either party from their respective obligations under sections 7 and 8 of this Agreement. 6. Insurance 6.1 During the term of this Agreement, CEE will obtain and maintain insurance in the amounts listed below: General Liability $2,000,000 Aggregate Limit Automobile Liability $1,000,000 Combined Single Limit Excess Liability $1,000,000 Aggregate Limit Workers Compensation Statutory Limit 7. Liability and Indemnification 7.1 CEE represents that the services to be provided under this Agreement are reasonable in scope and that CEE has the experience and ability to provide the services. 7.2 CEE warrants that any services provided hereunder shall be done in a professional and workmanlike manner. 7.3 CEE shall indemnify, defend and hold harmless Authority and its officers, directors, employees and agents from and against any and all claims, damages, losses, injuries and expenses (including attorneys’ fees and damages for death, personal injury and property damage) which Authority may incur as a result of any act or omission by CEE in providing services under this Agreement. 7.4 Authority shall indemnify, defend and hold harmless CEE and its officers, directors, employees and agents from and against any and all claims, damages, losses, injuries and expenses (including attorneys’ fees and damages for death, personal injury and property damage) which CEE may incur as a result of any act or omission by Authority in discharging its duties under this Agreement. 8. Confidentiality Unless otherwise agreed by Authority in writing, CEE shall maintain in confidence and not disclose to any third party any information obtained regarding the Authority CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #4073 Page 4 and/or any of Authority’s clients for which CEE is providing services; provided, however, that this obligation to maintain confidentiality shall not apply to: a) Information in the public domain at the time of disclosure; b) Information which becomes part of the public domain after disclosure through no fault of CEE; or c) Information which CEE can demonstrate was known by it prior to the date of this Agreement. Notwithstanding the foregoing, CEE shall be entitled to disclose the documents or client information covered by this paragraph to governmental authorities to the extent CEE reasonably believes it has a legal obligation to make such disclosures and to the extent CEE reasonably deems to be necessary; provided, however, that if CEE believes that any such disclosure is required by law, it shall provide advance notice to the Authority to provide the Authority with a reasonable opportunity to attempt to obtain an injunction or other protective order preventing such disclosure. 9. Relationship of Parties CEE will provide services as an independent contractor under this Agreement. Neither CEE, nor any of its employees or agents, shall be considered employees of the Authority for any purpose, and neither shall CEE be eligible for any compensation or benefits which the Authority may provide to its employees from time to time. CEE shall be solely responsible for all employment and other taxes applicable to providing services hereunder, and the Authority will not withhold any taxes or contributions from the compensation payable to CEE under this Agreement. 10. Notices All notices, requests, demands and other communications required to be given in writing under this Agreement shall be given to the other party in person or by mail as provided in this section. If delivered personally, notice shall be deemed to have been duly given on the date of delivery. If delivered by mail, such notice shall be sent via first class U.S. mail, postage prepaid, to the address set forth at the beginning of this Agreement or such other address as a party may otherwise request by written notice, and notice shall be deemed duly given three (3) business days after mailing. 11. Assignment This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns; provided, however, that neither party shall assign or transfer in any manner, this Agreement or any portion hereof without the prior written consent of the other party, and any attempt to assign or transfer without prior written consent shall be void and of no effect. 12. Governing Law CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #4073 Page 5 This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 13. Miscellaneous 13.1 Headings and captions used in this Agreement are for convenience only and shall not affect the meaning of this Agreement. 13.2 This Agreement contains the entire agreement of the parties and supersedes all prior agreements, discussions and representations, written or oral, concerning the subject matter hereof. 13.3 No waiver by the Authority of any term or condition of this Agreement or any document referred to herein shall, whether by conduct or otherwise, be construed as a waiver or release of any other term or condition of this Agreement. 13.4 This Agreement may only be amended in a written agreement signed by both parties. 13.5 Except as expressly set forth in section 7, the rights and benefits under this Agreement shall inure solely to the benefit of the Authority and CEE, and this Agreement shall not be construed to give any rights, benefits or causes of action to any third party. 13.6 The invalidity or partial invalidity of any provision of this Agreement shall not invalidate the remaining provisions, and the remainder shall be construed as of the invalidated portion shall have never been a part of this Agreement. 13.7 CEE shall comply with the provisions of Minnesota Statutes Chapter 13 (Government Data Practices) that are applicable to the Authority and shall not disseminate any information concerning loan requests of the borrowers without the prior written approval of the Authority. 13.8 This Agreement may be signed in any number of counterparts, each of which shall be deemed an original and one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND ENVIRONMENT CEE #4073 Page 6 ECONOMIC DEVELOPMENT AUTHORITY In and for the City of Crystal By: ________________________________________ Its: Executive Director Kim Therres Date: ________________________________________ CENTER FOR ENERGY & ENVIRONMENT By: Its: Date: Tax ID # 41-1647799 Exhibit A1 - _#4073_ Page 1 EXHIBIT A1 Crystal Program Guidelines This document includes guidelines for the Home Improvement Program of the Economic Development Authority of the City of Crystal Exhibit A1 - _#4073_ Page 2 Crystal Grant Program CRYSTAL PROGRAM GUIDELINES The Crystal Economic Development Authority (Authority) is making funds available for homeowners to assist with home additions, remodeling, maintenance and energy improvements. The Crystal Home Improvement Program is designed to supplement existing loan programs available from MHFA, CEE, private lenders and other housing resources. These programs are not intended to be the sole source of improvement funds available to the homeowners in the City. Center for Energy and Environment shall serve as the administrator for the Crystal Grant Program and will secure the most beneficial financing based on the borrower’s needs independent of the funding source. Eligible Project Expenses: • Interior remodeling • Building additions • Finishing basements, attics or similar spaces to convert them into habitable space • Energy efficiency improvements • Exterior building improvements such as roofing, siding, soffits/fascia, windows and doors • Site improvements such as retaining walls, sidewalks, driveways, fences, patios, decks, garages and the removal of diseased or hazardous trees • Systems such as HVAC, electrical and plumbing • Permanent Landscaping Ineligible Project Expenses: • Payment for work initiated prior to the grant being approved and closed, unless due to emergency. • Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.) • Furniture, non‐permanent appliances (unless part of a kitchen remodel), funds for working capital, debt service or refinancing existing debts. • Homeowner labor or other in‐kind contributions to the project. Minimum Project Size: Eligible Project Expenses must total at least $________ to qualify for a grant. Grant Amount: 20% of Eligible Project Expenses, except as noted below: • Exception: For projects replacing or lining a sanitary sewer service and/or disconnecting stormwater drainage (sump connections, foundation drains, etc.) from the sanitary sewer, the grant amount is 40% of those particular, itemized project costs. This is intended to augment the city's efforts to reduce inflow & infiltration into the sanitary sewer system. In many cases this work will be triggered by, and completed in conjunction with, the city's utility reconstruction projects (typically 1‐4 blocks per year). However, any income‐qualified, owner‐occupied residential property in the city is eligible. No property may receive grants totaling more than $8,000 in any calendar year. Exhibit A1 - _#4073_ Page 3 Eligible Properties: 1‐4 unit owner‐occupied properties located within the geographical boundaries of the City of Crystal. Properties held in a Trust, Townhomes and Condominiums are eligible, subject to Association Bylaws. Properties may be held in a Contract for Deed. If the property has more than 1 unit, the non‐owner‐occupied units must be in compliance with the City of Crystal’s rental licensing requirements. Ineligible Properties: Dwellings with more than 4 units, cooperatives, manufactured homes, time shares, properties used for commercial purposes and non‐owner occupied properties. Eligible Recipients: All recipients must be legal residents of the United States, as evidenced by a social security number, Including: U.S. Citizens, Permanent Resident Aliens, and Non‐Permanent Resident Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE. Ineligible Recipients: Including but not limited to: ‐ Businesses, Foreign Nationals, Non‐Occupant Co‐ Borrowers, and Properties held in the name of a trust. Income Limit: The property owner’s household income, including all persons living with the property owner regardless of familial or relationship status, shall not exceed the following maximum household income thresholds using HUD Regional Median Income based on household size: • 90% of regional median income for 1-person households • 100% of regional median income for households of 2 or more persons Income will be determined by the adjusted gross income on the most recent Federal Tax Return. If a tax return is not required, income will be determined by the projected gross income for the upcoming 12 months. Credit Requirements: 1) All mortgage payments must be current, 2) All real estate taxes must be current, and 3) No defaulted government loans, tax liens or child support. Bids: Two estimates are required. Only 1 materials list is required for sweat equity projects. All contractors must be properly licensed Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity” basis, but only the purchase of materials and rental of tools or equipment will be considered an Eligible Project Expense. Recipient Paid Fees: None Deadline for Work Completion: All work must be completed within 120 days of the grant closing. Extensions may be granted by CEE due to weather or similar factors. Exhibit A1 - _#4073_ Page 4 General Program Conditions Application Processing: Grants will be distributed on a first come first serve basis as recipients qualify. Applicants must provide a completed application package including the following in order to be considered for funding.  Completed and signed application form  Proof of income  Proof of Identity (drivers license, passport, etc.)  Bids or estimates for proposed projects  Other miscellaneous documents that may be required. Program Costs: Grant origination fees, grants and post‐installation inspection fees will be paid out of the Program Budget. Program marketing efforts will be billed directly to the City of Crystal and is a separate expense should the city choose to commission CEE for marketing support. Total Project Cost: It is the recipient’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. In the event the final cost exceeds the original amount, the recipient must obtain the additional funds and provide verification of the additional funds in order to proceed. Disbursement Process: Grant: Payment to the contractor (or owner in sweat equity situations) will be made upon completion of work. An inspection will be performed by a City Inspector and/or CEE to verify the completion of the work. The following items must be received prior to final disbursement of funds: • Final invoice or proposal from contractor (or materials list from supplier); • Final inspection verification by a City Inspector ; • Completion certificate(s) signed by borrower and contractor; • Lien waiver for entire cost of work; • Evidence of city permit (if required) or confirmation of post‐installation inspection by city (if no permit is required). EXHIBIT B1 Crystal Program Budget July 1, 2023 ‐ June 30, 2024 Crystal Grant Budget Allocation (includes Grants plus Annual Administration Fee, Post‐ Installation Inspection Fees and Grant Origination Fees): $306,000 TOTAL PROGRAM BUDGET: $306,000 Budget Notes: 1. CEE shall submit monthly invoices for grants, origination fees and post‐ installation inspections for that period. 2. Services performed by CEE will initially be funded from the Total Program Budget as stated above and paid in accordance with the following schedule. (1) Annual Administration Fee $5,000 (due July 1st of each year the contract is active) (2) Origination Fee: Grant $500 per grant closed 3. Marketing Marketing efforts outside of CEE’s website and grant information are not included in the administrative budget. Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to the labor of all additional program marketing. CEE will also be reimbursed by City of Crystal for any non‐labor, out‐of‐pocket expenses relating to these services on a dollar‐for‐dollar basis. Exhibit B1 ‐ #4073 Page 1 of 3 4141 Douglas Drive North • Crystal, Minnesota 55422-1696 Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov Posted: Dec. 2, 2022 City Council Meeting Agenda Tuesday, Dec. 6, 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. Appearance 3.1 Fourth Judicial District Chief Judge Toddrick Barnette will provide an update to the City Council. 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 Nov. 10, 2022. b. The City Council special meeting on Nov. 15, 2022. c. The City Council regular work session on Nov. 15, 2022. d. The City Council regular meeting on Nov. 15, 2022. e. The City Council special meeting on Nov. 16, 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 a donation. 4.4 Adoption of a resolution designating 2023 polling places. 4.5 Adoption of a resolution establishing yield control on 54th Ave. N. at Quail Ave. N. 4.6 Approval of the appointment of Rita Endres to the Blue Line Extension Business Advisory Committee. 4.7 Approval of the appointment of Ryan Johnson to the Blue Line Community Advisory Committee. 4.8 Adoption of a resolution authorizing execution of a Healthy Tree Canopy Grant Agreement with Hennepin County. Page 2 of 3 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.) 6. Public Hearings 6.1 The Mayor will open a public hearing to receive comment, and the Council will consider a resolution approving the 2023 budget, 2023 property tax levy, and 2023 Economic Development Authority budget and property tax levy. The City Council has had several work sessions on the 2023 budget and there are no changes from the preliminary budget and levies the City Council approved in September. Finance Director Jean McGann will provide a brief overview of the budget and how market values impact property taxes. After the Council takes public comment, recommend adoption of the resolution approving the 2023 budget, 2023 property tax levy, and 2023 Economic Development Authority and property tax levy. 6.2 The Mayor will open a public hearing to receive comment, and the Council will consider a resolution approving an affordable housing Tax Increment Financing (TIF) district for 5240 Apartments (5240 West Broadway). The EDA has passed a resolution of support for tax increment financing (TIF) to facilite the development of an affordable apartment building located at 5240 West Broadway. Ehlers has prepared a TIF plan to establish a new TIF district No. 5 for the 5240 West Broadway development site. After the Council takes public comment, recommend adoption of the resolution approving an affordable housing Tax Increment Financing (TIF) district. 7. Regular Agenda 7.1 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. 7.2 The Council will consider a contract with Adam R. Bell for city manager. An agreement has been reached with Adam R. Bell for the city manager position. Recommend approval. 7.3 The Council will consider approval of a joint powers agreement for an embedded mental health social worker for 2023 – 2024. There is a need in the community for a full-time mental health social worker. The social worker would be embedded into the police department. The cost of this service would be shared with Hennepin County. Recommend approval of the joint powers agreement. Page 3 of 3 7.4 The Council will consider the first reading of an ordinance amending the Unified Development Code (UDC) regarding motor vehicle sales. This amendment to the Unified Development Code (UDC) would expand the area where motor vehicle sales occur. The city has received a request from Premier Motors (6048-6058 Lakeland Ave. N.) to amend the use specific standards for vehicle sales to allow vehicle sales north of Lombardy Lane. The Planning Commission held a public hearing and unanimously recommended approval of the amendment. Recommend first reading. 8. Announcements a. The City Council will hold a work session on Thursday, Dec. 8 at 6:30 p.m. in the Council Chambers at City Hall and via Zoom. b. The next regular City Council meeting is Tuesday, Dec. 20 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. 9. Adjournment Have a great weekend; see you at Tuesday’s meeting. 3.1 3.1 Crystal City Council work session minutes Nov. 10, 2022 Page 1 of 1 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 Nov. 10, 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: Adams, Banks, Budziszewski, Cummings, Kiser and LaRoche. Council Member Parsons observed the meeting remotely via Zoom, but did not participate as a voting member. City staff present: Interim City Manager K. Therres, City Attorney T. Gilchrist, Police Chief S. Revering, Community Development Director J. Sutter and City Clerk C. Serres. Also present was League of Minnesota Cities Insurance Trust Attorney Paul Reuvers. Commission applicants Rita Endres and Ryan Johnson were present via Zoom. II.Agenda The Council and staff discussed the following agenda items: 1.Commission candidate interviews. 2.Moved by Council Member Cummings and seconded by Council Member LaRoche to close the meeting pursuant to Minnesota Statutes, Section 13D.05, subdivision 3(b) for an attorney- client protected discussion with the city’s attorneys regarding the matter of David Bissen and Kathy Bissen v. City of Crystal and JUFH Enterprises LLC. Motion carried. Moved by Council Member Banks and seconded by Council Member Budziszewski to re-open the meeting at 7:31 p.m. Motion carried. The Council and staff discussed the remaining agenda item: 3. Petition regarding Ordinance No. 2022 – 06. III.Adjournment The work session adjourned at 7:50 p.m. ________________________________ Jim Adams, Mayor ATTEST: Chrissy Serres, City Clerk 4.1(a) Crystal City Council special meeting minutes Nov. 15, 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. 15, 2022 at 6:45 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: Adams, Banks, Cummings, Kiser and LaRoche. Council members Budziszewski and Parsons were absent. City staff present: Interim City Manager K. Therres, City Attorney T. Gilchrist, Recreation Director J. Elholm, Public Works Director Mark Ray, Police Chief S. Revering, Community Development Director and City Clerk C. Serres. 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 Banks and seconded by Council Member LaRoche to approve the agenda. Motion carried. 3.Regular Agenda 3.1 The Council considered 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. City Clerk Chrissy Serres addressed the Council. Moved by Council Member LaRoche and seconded by Council Member Banks to adopt the following resolution: RESOLUTION NO. 2022 – 102 DECLARING THE RESULTS OF THE 2022 GENERAL MUNICIPAL ELECTION Voting aye: Adams, Banks, Cummings, Kiser, and LaRoche. Absent, not voting: Budziszewski and Parsons. Motion carried, resolution declared adopted. 4.Adjournment Moved by Council Member Banks and seconded by Council Member Cummings to adjourn the meeting. Motion carried. The meeting adjourned at 6:51 p.m. 4.1(b) Crystal City Council special meeting minutes Nov. 15, 2022 Page 2 of 2 ____________________________________ Jim Adams, Mayor ATTEST: _____________________________________ Chrissy Serres, City Clerk 4.1(b) Crystal City Council work session minutes Nov. 15, 2022 Page 1 of 1 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 6:17 p.m. on Nov. 15, 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: Banks, Cummings, Kiser, LaRoche and Adams. Council members Budziszewski and Parsons were absent. City staff present: Interim City Manager K. Therres, City Attorney T. Gilchrist, Recreation Director J. Elholm, Public Works Director M. Ray, Police Chief S. Revering, Community Development Director J. Sutter and City Clerk C. Serres. Also present were Crystal Business Association President Keri Manson and Treasurer Martin Shimko. II.Agenda The Council and staff discussed 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 6:40 p.m. ________________________________ Jim Adams, Mayor ATTEST: Chrissy Serres, City Clerk 4.1(c) Crystal City Council meeting minutes Nov. 15, 2022 Page 1 of 4 1.Call to Order Pursuant to due call and notice thereof, the regular meeting of the Crystal City Council was held on Nov. 15, 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: Banks, Budziszewski, Cummings, Kiser, LaRoche and Adams. Council Member Parsons was absent. City staff present: Interim 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. 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.Proclamation 3.1 Mayor Adams proclaimed Nov. 26, 2022 as Small Business Saturday in the City of Crystal. 4.Consent Agenda The Council considered 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 Res. No. 2022 – 103, accepting donations. 4.4 Adoption of Res. No. 2022 – 104, authorizing a grant application to the Hennepin Youth Sports program for improvements at Welcome Park. 4.5 Adoption of Res. No. 2022 – 105, making the city’s annual insurance elections. Moved by Council Member Banks and seconded by Council Member Budziszewski to approve the consent agenda. Motion carried. 4.1(d) Crystal City Council meeting minutes Nov. 15, 2022 Page 2 of 4 5. Open Forum No public comment was given during open forum. 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 Budziszewski and seconded by Council Member Cummings to approve the list of disbursements over $25,000. Voting aye: Banks, Budziszewski, Cummings, Kiser, LaRoche and Adams. Absent, not voting: Parsons. Motion carried. 6.2 The Council considered civil penalties for violation of liquor license regulations by Cousins, LLC d/b/a Adair Liquor located at 6001 42nd Ave. N. City Clerk Chrissy Serres addressed the Council. Council Member Budziszewski made a motion that based on the staff report, including the findings contained therein, and the other information presented regarding this matter, that a penalty of $2,000 and a 10-day license suspension be imposed in this case. Council Member Kiser seconded the motion. Voting aye: Banks, Budziszewski, Cummings, Kiser, LaRoche and Adams. Absent, not voting: Parsons. Motion carried. 6.3 The Council considered a resolution awarding the contract for the pedestrian bridge in Bassett Creek Park. Recreation Director John Elholm addressed the Council. Moved by Council Member LaRoche and seconded by Council Member Cummings to adopt the following resolution: RESOLUTION NO. 2022 – 106 RESOLUTION IN SUPPORT OF PURCHASING A PREFABRICATED TRUSS BRIDGE FOR BASSETT CREEK PARK Voting aye: Banks, Budziszewski, Cummings, Kiser, LaRoche and Adams. Absent, not voting: Parsons. Motion carried, resolution declared adopted. 6.4 The Council considered a resolution approving the purchase of light fixtures and controls for the pickleball courts at Becker Park. Recreation Director John Elholm addressed the Council. 4.1(d) Crystal City Council meeting minutes Nov. 15, 2022 Page 3 of 4 Moved by Mayor Adams and seconded by Council Member Cummings to adopt the following resolution: RESOLUTION NO. 2022 – 107 RESOLUTION IN SUPPORT OF PURCHASING AN LED LIGHTING SYSTEM FOR THE PICKLEBALL AND BASKETBALL COURTS IN BECKER PARK Voting aye: Banks, Budziszewski, Cummings, Kiser, LaRoche and Adams. Absent, not voting: Parsons. Motion carried, resolution declared adopted. 6.5 The Council considered a resolution approving the purchase of body cameras. Police Chief Stephanie Revering addressed the Council. Moved by Council Member Banks and seconded by Council Member LaRoche to adopt the following resolution: RESOLUTION NO. 2022 – 108 RESOLUTION APPROVING POLICE EQUIPMENT REVOLVING FUND EXPENDITURE FOR PURCHASE OF 34 BODY CAMERAS AND OTHER NECESSARY EQUIPMENT FOR INSTALLATION PURPOSES Voting aye: Banks, Budziszewski, Cummings, Kiser, LaRoche and Adams. Absent, not voting: Parsons. Motion carried, resolution declared adopted. 6.6 The Council considered a labor agreement with LELS, Local 44 (police officers) for 2023 – 2025. Interim City Manager Kim Therres addressed the Council. Moved by Council Member Budziszewski and seconded by Council Member Banks to approve the labor contract with LELS, Local 44 (police officers) for 2023 – 2025. Voting aye: Banks, Budziszewski, Cummings, Kiser, LaRoche and Adams. Absent, not voting: Parsons. Motion carried. 6.7 The Council considered a labor contract with LELS, Local 56 (police supervisors) for 2023 – 2025. Interim City Manager Kim Therres addressed the Council. Moved by Council Member Budziszewski and seconded by Council Member Banks to approve the labor contract with LELS, Local 56 (police supervisors) for 2023 – 2025. Voting aye: Banks, Budziszewski, Cummings, Kiser, LaRoche and Adams. Absent, not voting: Parsons. Motion carried. 4.1(d) Crystal City Council meeting minutes Nov. 15, 2022 Page 4 of 4 6.8 The Council considered a resolution regarding the petition related to Ordinance No. 2022-06. City Attorney Troy Gilchrist addressed the Council. Moved by Council Member Banks and seconded by Council Member LaRoche to adopt the following resolution: RESOLUTION NO. 2022 – 109 RESOLUTION REPEALING ORDINANCE 2022-06 IN RESPONSE TO CITIZEN PETITION Voting aye: Banks, Budziszewski, Cummings, Kiser, LaRoche and Adams. Absent, not voting: Parsons. Motion carried, resolution declared repealed. 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 7:40 p.m. ____________________________________ Jim Adams, Mayor ATTEST: _____________________________________ Chrissy Serres, City Clerk 4.1(d) Crystal City Council special meeting minutes Nov. 16, 2022 Page 1 of 1 1.Call to Order Pursuant to due call and notice thereof, the special meeting of the Crystal City Council was held on Nov. 16, 2022 at 4:02 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 deputy city clerk to call the roll for elected officials. Upon roll call, the following attendance was recorded: Council members present: Budziszewski (arrived at 7 p.m.), Cummings, Kiser, LaRoche, Parsons, Adams and Banks. City staff present: Interim City Manager K. Therres, Recreation Director J. Elholm, West Metro Fire- Rescue District Chief S. Larson, Police Chief S. Revering, Community Development Director J. Sutter, City Clerk C. Serres, and Deputy City Clerk C. Yang. 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 Banks to approve the agenda. Motion carried. 3.Regular Agenda 3.1 The Council interviewed city manager finalists. DDA Human Resources, Inc. consultant Mark Casey addressed the Council. Moved by Council Member Kiser and seconded by Council Member Budziszewski to offer the position of the Crystal city manager to and negotiate the terms of employment with Adam Bell. Voting aye: Budziszewski, Cummings, Kiser, LaRoche, Parsons, Adams, and 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 7:53 p.m. ____________________________________ Jim Adams, Mayor ATTEST: _____________________________________ Chrissy Serres, City Clerk 4.1(e) Page 1 of 2 City of Crystal Council Meeting Dec. 6, 2022 Applications for City License Rental – New 4160 Kentucky Ave. N. – Makesa Chishala (Conditional) 3500 Kyle Ave. N. – Joshua Breitung and Martin Kosto (Conditional) 3542 Kyle Ave. N. – Daljit Chawla (Conditional) 6417 Markwood Dr. N. – Wang Dui (Conditional) 5442 Orchard Ave. N. – Irina Vanasek (Conditional) 4433 Welcome Ave. N. – Lien Lam (Conditional) 5656 Zane Ave. N. – Kevin Knops 5800-5804 36th Ave. N. – Daljit Chawla 6619 50th Ave. N. – David and Quyen North (Conditional) Rental – Renewal 5757 Adair Ave. N. – Invitation Homes (Conditional) 5017 Angeline Ave. N. – Clifford Benson (Conditional) 5309 Angeline Ave. N. – Taye Degafi 3224 Brunswick Ave. N. – Jon Hayne 3338 Brunswick Ave. N. – Hennepin RP Funding (Conditional) 4608 Brunswick Ave. N. – Chen Zhou 3200-3204 Douglas Dr. N. – Living Works Ventures 3255-3257 Douglas Dr. N. – Living Works Ventures 3408 Douglas Dr. N. – Wally Anderson (Conditional) 5141 Edgewood Ave. N. – Rumeal Harris (Conditional) 3415 Hampshire Ave. N. – Todd Stenson 4609 Hampshire Ave. N. – Maggie Majewski 4812-4814 Idaho Ave. N. – John Proulx (Conditional) 5331 Kentucky Ave. N. – Brad Buechele 3541 Kyle Ave. N. – Joseph Thomas (Conditional) 2916 Louisiana Ave. N. – Hennepin RP Funding (Conditional) 3537 Major Ave. N. – Vertical Capital Group (Conditional) 6317 Markwood Dr. N. – Gary Pfeiffer 3335 Nevada Ave. N. #3501 – Kelly Bania 3525 Noble Ave. N. – C and N Wescoe Bauman (Conditional) 5448 Orchard Ave. N. – Brian Gustafson 5733 Orchard Ave. N. – Blulake Properties (Conditional) 5708 Oregon Ct. N. – Hung Huynh 5607 Regent Ave. N. – Herman Capital Partners 6800 Valley Pl. N. – Michael Lietzau (Conditional) 4507 Vera Cruz Ave. N. – Michael Hillenbrand 5738 West Broadway – Tim Drew 3425 Xenia Ave. N. – Tiki Properties Inc. 3636 Xenia Ave. N. – Pro Operam Sub III LLC (Conditional) 4712 Yates Ave. N. – Hawkeye Real Estate 8000 32nd Pl. N. – Invitation Homes (Conditional) 8033 34th Pl. N. – Invitation Homes (Conditional) 4.2 Page 2 of 2 6908 35th Pl. N. – FYR SFR Borrower 6012 36th Ave. N. – Roberta Brown (Conditional) 6826 36th Ave. N. – FYR SFR Borrower (Conditional) 6621 41st Pl. N. – Invitation Homes (Conditional) 6720 45th Ave. N. – Robert Loukinen 5920 46th Ave. N. – 3 Rivers St. Paul LLC. 6428 46th Pl. N. – Fatou Jallow (Conditional) 5333 49th Ave. N. – Joseph Anton 5001 52nd Ave. N. – Kevin Christ 5332 52nd Ave. N. – Raymond Zettel (Conditional) 5014 56th Ave. N. – Christina Duong 7206 58th Ave. N. – C and N Wescoe Bauman (Conditional) 7724 59th Ave. N. – Justin Quirk (Conditional) 4.2 CITY OF CRYSTAL RESOLUTION NO. 2022 - ___ RESOLUTION ACCEPTING A DONATION FROM TOLGA MISIRLI 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 donation: Donor Purpose Amount Tolga Misirli Recreation youth scholarship fund $10 And BE IT FURTHER RESOLVED that the Crystal City Council sincerely thanks the above-named for their generous donation. Dated: Dec. 6, 2022 By: __________________________ Jim Adams, Mayor ATTEST: __________________________ Chee Yang, Deputy City Clerk 4.3 CITY OF CRYSTAL RESOLUTION NO. 2022 - ___ RESOLUTION DESIGNATING 2023 POLLING LOCATIONS IN CRYSTAL WHEREAS, Minnesota Statutes § 204B.16 requires that cities designate polling locations for each election precinct within their city; and WHEREAS, per statute this must be done by Dec. 31 of each year and the city will designate by resolution; and WHEREAS, the following locations are designated: Ward 1, Precinct 1: Crystal City Hall, 4141 Douglas Dr. N. Ward 2, Precinct 1: FAIR School Crystal, 3915 Adair Ave. N. Ward 2, Precinct 2: FAIR School Crystal, 3915 Adair Ave. N. Ward 3, Precinct 1: Crystal Community Center, 4800 Douglas Dr. N. Ward 4, Precinct 1: Cornerstone Church Crystal, 5000 West Broadway. WHEREAS, if a location changes, a re-designation will be a separate action prior to the election with notice sent to registered voters at least 25 days before the next election. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal, Minnesota that the polling locations listed above are the designated 2023 polling locations in Crystal. Adopted by the Crystal City Council this 6th day of December, 2022. ____________________________ Jim Adams, Mayor ATTEST: ___________________________ Chee Yang, Deputy City Clerk 4.4 Memorandum DATE: December 6, 2022 TO: City Council FROM: Mark Ray, PE, Director of Public Works SUBJECT: Establishing two-way yield control on 54th Ave N at Quail Ave N Summary Recently a resident contacted the City with concerns about the safety of the intersection of 54th Avenue North and Quail Avenue North. When reviewing and responding to requests, the City takes into consideration crash reports, vehicle speeds, vehicle volumes, field observations, and other information. Crashes According to crash report analysis, there have been five reported crashes at the intersection in the last 10 years (2012, 2017, 2020, 2021, 2022). All were right angle crashes. Sight Distance Intersection visibility appeared consistent with residential streets in Crystal. There is an evergreen tree in the southeast corner of the intersection that does not conform to City Code for corner visibility requirements and we will be following up with the property owner. Traffic Control in the Area The neighborhood around the intersection is mostly uncontrolled intersections and a few two-way stop intersections. Summary Based on the field inspection and data reviewed, the existing conditions at 54th Avenue North and Quail Avenue North do not warrant stop signs. That said, because of the crash history at the intersection, it does appear that drivers are not correctly understanding who has the right of way when approaching the intersection. To aid in establishing who has the right of way, it is recommended that yield signs be installed on 54th Avenue North as that is the street with the lower relative volume. The addition of the yield signs should aid in clarification of right of way while not significantly increasing delay at the intersection. Recommended Action Motion authorizing the installation of the yield signs on 54th Avenue North at Quail Avenue North. 4.5 RESOLUTION NO. 2022- ___ ESTABLISH TWO-WAY YIELD CONTROL ON 54th AVENUE NORTH AT QUAIL AVENUE NORTH WHEREAS, the City Council has the power and authority, pursuant to State Statute Chapter 169.06, Subd. 3., to place and maintain traffic control devices on City streets to regulate traffic; and WHEREAS, all traffic control shall conform to the state manual and specifications for traffic control devices; and WHEREAS, the City has completed a study of the intersection which recommended the installation of the yield signs; NOW, THEREFORE, BE IT RESOLVED that the Crystal City Council hereby establishes two-way yield control on 54th Ave N at Quail Ave N. Adopted by the Crystal City Council this 6th day of December, 2022. _____________________________ Jim Adams, Mayor ATTEST: _____________________________ Chee Yang, Deputy City Clerk 4.5 Memorandum DATE: November 15, 2022 TO: Mayor and City Council FROM: Kim Therres, Interim City Manager SUBJECT: Blue Line Extension Business Advisory Commission Appointment ____________________________________________________________________ At its November 10 work session, the City Council interviewed Crystal business owner Rita Endres for the Blue Line Extension Business Advisory Committee. There is one business vacancy on this committee, with Crystal business owner Candace Oathout being previously appointed to the other seat. There is also one vacancy for a religious, charitable or non-profit organization located in Crystal. Based on Council recommendation, Rita Endres should be appointed to the Blue Line Extension Business Advisory Committee. 4.6 4.6 4.6 4.6 Memorandum DATE: November 15, 2022 TO: Mayor and City Council FROM: Kim Therres, Interim City Manager SUBJECT: Blue Line Extension Community Commission Appointment ____________________________________________________________________ At its November 10 work sessions, the City Council interviewed Crystal resident Ryan Johnson for the Blue Line Extension Community Advisory Committee. There is one vacancy on this committee, with Crystal resident Perry Bolin being previously appointed to the other seat. Based on Council recommendation, Ryan Johnson should be appointed to the Blue Line Extension Community Advisory Committee. 4.7 4.7 4.7 4.7 Page 1 of 1 ___________________________________________________________________________ FROM: John Sutter, Community Development Director D ATE: November 30, 2022 TO: Kim Therres, Interim City Manager (for December 6 Council meeting) SUBJECT: Consider a resolution authorizing execution of a Healthy Tree Canopy Grant Agreement with Hennepin County In June 2022, staff applied to Hennepin County for a Healthy Tree Canopy grant to help the city deal with the cost of responding to the Emerald Ash Borer infestation. Grant funds would be used to remove diseased Ash trees on public property and plant replacement trees. The grant would be for $50,000 and the required 25% match would be covered by expenditures already included in the 2023 Forestry budget. Therefore the only fiscal impact would be positive for the city. REQUESTED COUNCIL ACTION Adopt the attached resolution authorizing execution of a Healthy Tree Canopy Grant Agreement with Hennepin County. COUNCIL STAFF REPORT Hennepin County Healthy Tree Canopy Grant for $50,000 4.8 CITY OF CRYSTAL MINNESOTA RESOLUTION NO. 2022-__ RESOLUTION AUTHORIZING EXECUTION OF A HEALTHY TREE CANOPY GRANT AGREEMENT WITH HENNEPIN COUNTY WHEREAS, a key City Council priority is to create strong neighborhoods; and WHEREAS, a healthy tree canopy is an important factor in neighborhood appeal and livability; and WHEREAS, the City of Crystal is being significantly impacted by the Emerald Ash Borer; and WHEREAS, these impacts include expenditures related to removal and replacement of diseased Ash trees on public property; and WHEREAS, Hennepin County has awarded a $50,000 Healthy Tree Canopy grant to the City to financially assist the city with said removal and replacement. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal that the City Manager is authorized to execute the Healthy Tree Canopy grant agreement in substantially the same form as the agreement attached as Exhibit A. Adopted this 6th day of December, 2022. ______________________________ Jim Adams Mayor ATTEST: _______________________________ Chee Yang Deputy City Clerk 4.8 Form 101 (Revised 8/2022)1 Contract No: PR00004623 GRANT AGREEMENT This Agreement (“Agreement”) is between the COUNTY OF HENNEPIN, STATE OF MINNESOTA, A-2300 Government Center, Minneapolis, Minnesota 55487, on behalf of the Hennepin County Department of Environment and Energy, 701 4th Avenue South, Suite 700, Minneapolis, MN 55415 (“COUNTY”), and City of Crystal, 5001 West Broadway, Crystal, MN (“GRANTEE”). The parties agree as follows: 1.TERM AND AMOUNT OF GRANT GRANTEE shall complete all grant requirements (“Grant Requirements”) commencing November 1, 2022, and expiring on December 1, 2023, unless cancelled or terminated earlier in accordance with the provisions herein. The total grant under this Agreement, including all reimbursable expenses, shall not exceed fifty thousand dollars and no/100 ($50,000.00). 2.GRANT REQUIREMENTS A. GRANTEE shall perform its healthy tree canopy grant project (“Project”) as identified in its grant application, attached and incorporated herein as Attachment A. B.GRANTEE shall provide twenty-five percentage matching funds as described in the project budget and project requirements, as well as provide proof of matching funds before reimbursement. See Attachment B for budget details. C.GRANTEE shall submit to COUNTY a final project summary in a reporting form to be provided by COUNTY by March 1, 2024. 3.GRANT DISBURSEMENT COUNTY shall pay Grant Funds to GRANTEE after GRANTEE’s submission of aninvoice to COUNTY. GRANTEE may submit invoices as often as quarterly. Invoices must be accompanied by supporting receipts and/or work orders or other supporting documents. Payment shall be made within thirty-five (35) days from receipt of the invoice. Unless expressly approved in writing by COUNTY, GRANTEE shall not provideservices under this Agreement without receiving a purchase order or purchase order number supplied by COUNTY. All invoices shall display a Hennepin County purchase order number and be emailed to Shane DeGroy at shane.degroy@hennepin.us or to another COUNTY employee, as instructed by COUNTY. EXHIBIT A TO RESOLUTION 4.8 Form 101 (Revised 8/2022) 2 The total Grant Funds paid by COUNTY shall not exceed $50,000.00, as indicated in Section 1. Reimbursable expenses are limited to budget line items. Any reimbursable expense which exceeds $50,000.00 shall receive prior written approval from the Contract Administrator. Except for the payments expressly set forth herein or in Attachment B, costs and expenses for travel, airfare, lodging, per diem, parking, mileage, ground transportation, and all other costs or expenses shall be paid by GRANTEE and not reimbursed by COUNTY. Payments shall be made pursuant to the provisions herein and COUNTY’s then applicable payment policies, procedures, rules, and directions. COUNTY is not responsible for remedying fraudulent or unauthorized payments requested in GRANTEE’s name. 4. PROFESSIONAL CREDENTIALS INTENTIONALLY OMITTED. 5. INDEPENDENT GRANTEE GRANTEE shall select the means, method, and manner of performing the services. Nothing is intended nor should be construed as creating or establishing the relationship of a partnership or a joint venture between the parties or as constituting GRANTEE as the agent, representative, or employee of COUNTY for any purpose. GRANTEE is and shall remain an independent contractor for all services performed under this Agreement. GRANTEE shall secure at its own expense all personnel required in performing services under this Agreement. GRANTEE’s personnel and/or subcontractors engaged to perform any work or services required by this Agreement will have no contractual relationship with COUNTY and will not be considered employees of COUNTY. COUNTY shall not be responsible for any claims related to or on behalf of any of GRANTEE’s personnel, including without limitation, claims that arise out of employment or alleged employment under the Minnesota Unemployment Insurance Law (Minnesota Statutes Chapter 268) or the Minnesota Workers’ Compensation Act (Minnesota Statutes Chapter 176) or claims of discrimination arising out of applicable law, against GRANTEE, its officers, agents, contractors, or employees. Such personnel or other persons shall neither accrue nor be entitled to any compensation, rights, or benefits of any kind from COUNTY, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, workers’ compensation, unemployment compensation, disability, severance pay, and retirement benefits. 6. NON-DISCRIMINATION A. In accordance with COUNTY’s policies against discrimination, GRANTEE shall not exclude any person from full employment rights nor prohibit participation in or the benefits of any program, service, or activity on the grounds of any protected 4.8 Form 101 (Revised 8/2022) 3 status or class, including but not limited to race, color, creed, religion, national origin, sex, gender expression, gender identity, age, disability, marital status, sexual orientation, or public assistance status. No person who is protected by applicable law against discrimination shall be subjected to discrimination. B. COUNTY encourages GRANTEE to develop and implement a policy promoting diversity, equity, and inclusion in GRANTEE’s workplace. 7. AFFIRMATIVE ACTION INTENTIONALLY OMITTED. 8. INDEMNIFICATION GRANTEE shall defend, indemnify, and hold harmless COUNTY, its present and former officials, officers, agents, volunteers and employees from any liability, claims, causes of action, judgments, damages, losses, costs, or expenses, including attorney’s fees, resulting directly or indirectly from any act or omission of GRANTEE, a subcontractor, anyone directly or indirectly employed by them, and/or anyone for whose acts and/or omissions they may be liable in the performance of the services required by this Agreement, and against all loss by reason of the failure of GRANTEE to perform any obligation under this Agreement. For clarification and not limitation, this obligation to defend, indemnify and hold harmless includes but is not limited to any liability, claims or actions resulting directly or indirectly from alleged infringement of any copyright or any property right of another, the employment or alleged employment of GRANTEE personnel, the unlawful disclosure and/or use of protected data, or other noncompliance with the requirements of these provisions. 9. INSURANCE Each party warrants that it has a purchased insurance or a self-insurance program sufficient to meet its liability obligations and, at a minimum, to meet the maximum liability limits of Minnesota Statutes Chapter 466. This provision shall not be construed as a waiver of any immunity from liability under Chapter 466 or any other applicable law. 10. DUTY TO NOTIFY GRANTEE shall promptly notify COUNTY of any demand, claim, action, cause of action or litigation brought against GRANTEE, its employees, officers, agents or subcontractors, which arises out of the services described in this Agreement. GRANTEE shall also notify COUNTY whenever GRANTEE has a reasonable basis for believing that GRANTEE and/or its employees, officers, agents or subcontractors, and/or 4.8 Form 101 (Revised 8/2022) 4 COUNTY, might become the subject of a demand, claim, action, cause of action, administrative action, criminal arrest, criminal charge or litigation arising out of and/or related to the services described in this Agreement. 11. DATA PRIVACY AND SECURITY A. GRANTEE, its officers, agents, owners, partners, employees, volunteers and subcontractors shall, to the extent applicable, abide by the provisions of the Minnesota Government Data Practices Act, Minnesota Statutes, chapter 13 (MGDPA) and all other applicable law, rules, regulations and orders relating to data or the privacy, confidentiality or security of data. For clarification and not limitation, COUNTY hereby notifies GRANTEE that the requirements of Minnesota Statutes section 13.05, subd. 11, apply to this Agreement. GRANTEE shall promptly notify COUNTY if GRANTEE becomes aware of any potential claims, or facts giving rise to such claims, under the MGDPA or other data, data security, privacy or confidentiality laws, and shall also comply with the other requirements of this Section. Classification of data, including trade secret data, will be determined pursuant to applicable law and, accordingly, merely labeling data as “trade secret” by GRANTEE does not necessarily make the data protected as such under any applicable law. B. Upon expiration, cancellation or termination of this Agreement: (1) At the discretion of COUNTY and as specified in writing by the Contract Administrator, GRANTEE shall deliver to the Contract Administrator all County Data so specified by COUNTY. (2) COUNTY shall have full ownership and control of all such County Data. If COUNTY permits GRANTEE to retain copies of the County Data, GRANTEE shall not, without the prior written consent of COUNTY or unless required by law, use any of the County Data for any purpose or in any manner whatsoever; shall not assign, license, loan, sell, copyright, patent and/or transfer any or all of such County Data; and shall not do anything which in the opinion of COUNTY would affect COUNTY’s ownership and/or control of such County Data. (3) Except to the extent required by law or as agreed to by COUNTY, GRANTEE shall not retain any County Data that are confidential, protected, privileged, not public, nonpublic, or private, as those classifications are determined pursuant to applicable law. In addition, GRANTEE shall, upon COUNTY’s request, certify destruction of any County Data so specified by COUNTY. 4.8 Form 101 (Revised 8/2022) 5 12. RECORDS – AVAILABILITY/ACCESS Subject to the requirements of Minnesota Statutes section 16C.05, subd. 5, COUNTY, the State Auditor, or any of their authorized representatives, at any time during normal business hours, and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records, etc., which are pertinent to the accounting practices and procedures of GRANTEE and involve transactions relating to this Agreement. GRANTEE shall maintain these materials and allow access during the period of this Agreement and for six (6) years after its expiration, cancellation or termination. 13. SUCCESSORS, SUBCONTRACTING AND ASSIGNMENTS A. GRANTEE binds itself, its partners, successors, assigns and legal representatives to COUNTY for all covenants, agreements and obligations herein. B. GRANTEE shall not assign, transfer or pledge this Agreement and/or the services to be performed, whether in whole or in part, nor assign any monies due or to become due to it without the prior written consent of COUNTY. A consent to assign shall be subject to such conditions and provisions as COUNTY may deem necessary, accomplished by execution of a form prepared by COUNTY and signed by GRANTEE, the assignee and COUNTY. Permission to assign, however, shall under no circumstances relieve GRANTEE of its liabilities and obligations under the Agreement. C. GRANTEE shall not subcontract this Agreement and/or the services to be performed, whether in whole or in part, without the prior written consent of COUNTY. Permission to subcontract, however, shall under no circumstances relieve GRANTEE of its liabilities and obligations under the Agreement. Further, GRANTEE shall be fully responsible for the acts, omissions, and failure of its subcontractors in the performance of the specified contractual services, and of person(s) directly or indirectly employed by subcontractors. Contracts between GRANTEE and each subcontractor shall require that the subcontractor’s services be performed in accordance with this Agreement. GRANTEE shall make contracts between GRANTEE and subcontractors available upon request. For clarification and not limitation of the provisions herein, none of the following constitutes assent by COUNTY to a contract between GRANTEE and a subcontractor, or a waiver or release by COUNTY of GRANTEE’s full compliance with the requirements of this Section: (1) COUNTY’s request or lack of request for contracts between GRANTEE and subcontractors; (2) COUNTY’s review, extent of review or lack of review of any such contracts; or (3) COUNTY’s statements or actions or omissions regarding such contracts. D. As required by Minnesota Statutes section 471.425, subd. 4a, GRANTEE shall pay any subcontractor within ten (10) days of GRANTEE’s receipt of payment 4.8 Form 101 (Revised 8/2022) 6 from COUNTY for undisputed services provided by the subcontractor, and GRANTEE shall comply with all other provisions of that statute. 14. MERGER, MODIFICATION AND SEVERABILITY A. The entire Agreement between the parties is contained herein and supersedes all oral agreements and negotiations between the parties relating to the subject matter. All items that are referenced or that are attached are incorporated and made a part of this Agreement. If there is any conflict between the terms of this Agreement and referenced or attached items, the terms of this Agreement shall prevail. GRANTEE and/or COUNTY are each bound by its own electronic signature(s) on this Agreement, and each agrees and accepts the electronic signature of the other party. B. Any alterations, variations or modifications of the provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement signed by the parties. Except as expressly provided, the substantive legal terms contained in this Agreement, including but not limited to Indemnification, Insurance, Merger, Modification and Severability, Default and Cancellation/Termination or Minnesota Law Governs may not be altered, varied, modified or waived by any change order, implementation plan, scope of work, development specification or other development process or document. C. If any provision of this Agreement is held invalid, illegal or unenforceable, the remaining provisions will not be affected. 15. DEFAULT AND CANCELLATION/TERMINATION A. If GRANTEE fails to perform any of the provisions of this Agreement, fails to administer the work so as to endanger the performance of the Agreement or otherwise breaches or fails to comply with any of the terms of this Agreement, it shall be in default. Unless GRANTEE’s default is excused in writing by COUNTY, COUNTY may upon written notice immediately cancel or terminate this Agreement in its entirety. Additionally, failure to comply with the terms of this Agreement shall be just cause for COUNTY to delay payment until GRANTEE’s compliance. In the event of a decision to withhold payment, COUNTY shall furnish prior written notice to GRANTEE. B. Notwithstanding any provision of this Agreement to the contrary, GRANTEE shall remain liable to COUNTY for damages sustained by COUNTY GRANTEE virtue of any breach of this Agreement by GRANTEE. Upon notice to GRANTEE of the claimed breach and the amount of the claimed damage, COUNTY may withhold any payments to GRANTEE for the purpose of set-off until such time as the exact amount of damages due COUNTY from GRANTEE 4.8 Form 101 (Revised 8/2022) 7 is determined. Following notice from COUNTY of the claimed breach and damage, GRANTEE and COUNTY shall attempt to resolve the dispute in good faith. C. The above remedies shall be in addition to any other right or remedy available to COUNTY under this Agreement, law, statute, rule, and/or equity. D. COUNTY’s failure to insist upon strict performance of any provision or to exercise any right under this Agreement shall not be deemed a relinquishment or waiver of the same, unless consented to in writing. Such consent shall not constitute a general waiver or relinquishment throughout the entire term of the Agreement. E. This Agreement may be canceled/terminated with or without cause by COUNTY upon thirty (30) days’ written notice. F. If this Agreement expires or is cancelled or terminated, with or without cause, by either party, at any time, GRANTEE shall not be entitled to any payment, fees or other monies except for payments duly invoiced for then-delivered and accepted deliverables/milestones pursuant to this Agreement. In the event GRANTEE has performed work toward a deliverable that COUNTY has not accepted at the time of expiration, cancellation or termination, GRANTEE shall not be entitled to any payment for said work, including but not limited to incurred costs of performance, termination expenses, profit on the work performed, other costs founded on termination for convenience theories or any other payments, fees, costs or expenses not expressly set forth in this Agreement. G. GRANTEE has an affirmative obligation, upon written notice by COUNTY that this Agreement may be suspended or cancelled/terminated, to follow reasonable directions by COUNTY, or absent directions by COUNTY, to exercise a fiduciary obligation to COUNTY, before incurring or making further costs, expenses, obligations or encumbrances arising out of or related to this Agreement. 16. SURVIVAL OF PROVISIONS Provisions that by their nature are intended to survive the term, cancellation or termination of this Agreement do survive such term, cancellation or termination. Such provisions include but are not limited to: GRANT REQUIREMENTS; INDEPENDENT GRANTEE; INDEMNIFICATION; INSURANCE; DUTY TO NOTIFY; DATA PRIVACY AND SECURITY; RECORDS-AVAILABILITY/ACCESS; DEFAULT AND CANCELLATION/TERMINATION; MEDIA OUTREACH; and MINNESOTA LAW GOVERNS. 4.8 Form 101 (Revised 8/2022) 8 17. GRANTEE ADMINISTRATION In order to coordinate the services of GRANTEE with the activities of the Department of Environment & Energy so as to accomplish the purposes of this Agreement, Shane M. DeGroy, Forester or successor (“Grantee Administrator”), shall manage this Agreement on behalf of COUNTY and serve as liaison between COUNTY and GRANTEE. Brad Fortin, 763-531-1158, brad.fortin@crystalmn.gov, shall manage the agreement on behalf of GRANTEE. GRANTEE may replace such person but shall immediately give written notice to COUNTY of the name, phone number and email (if available) of such substitute person and of any other subsequent substitute person. 18. COMPLIANCE AND NON-DEBARMENT CERTIFICATION A. GRANTEE shall comply with all applicable law, conditions of any funding sources, regulations, rules and ordinances currently in force or later enacted. B. GRANTEE certifies that it is not prohibited from doing business with either the federal government or the state of Minnesota as a result of debarment or suspension proceedings. GRANTEE shall immediately notify COUNTY if GRANTEE is debarred or suspended during the term of this Agreement. 19. RECYCLING COUNTY encourages GRANTEE to have a single-sort recycling program or provide recycling service for at least three types of materials, which may include food waste. COUNTY also encourages GRANTEE to educate employees about the recycling program. 20. NOTICES Unless the parties otherwise agree in writing, any notice or demand which must be given or made by a party under this Agreement or any statute or ordinance shall be in writing and shall be sent registered or certified mail. Notices to COUNTY shall be sent to the County Administrator with a copy to the originating COUNTY department at the address given in the opening paragraph of this Agreement. Notice to GRANTEE shall be sent to the address stated in the opening paragraph of this Agreement or to the address stated in GRANTEE’s Form W-9 provided to COUNTY. 21. CONFLICT OF INTEREST GRANTEE affirms that to the best of GRANTEE’s knowledge, GRANTEE’s involvement in this Agreement does not result in a conflict or potential conflict of interest with any party or entity which may be affected by the terms of this Agreement. Should 4.8 Form 101 (Revised 8/2022) 9 any conflict or potential conflict of interest become known to GRANTEE, GRANTEE shall immediately notify COUNTY of the conflict or potential conflict, specifying the part of this Agreement giving rise to the conflict or potential conflict, and advise COUNTY whether GRANTEE will or will not resign from the other engagement or representation. Unless waived by COUNTY, a conflict or potential conflict may, in COUNTY’s discretion, be cause for cancellation or termination of this Agreement. 22. MEDIA OUTREACH GRANTEE shall notify COUNTY, prior to publication, release, or occurrence of any Outreach (as defined below). The parties shall coordinate to produce collaborative and mutually acceptable Outreach. For clarification and not limitation, all Outreach shall be approved by COUNTY, by and through its Public Relations Officer or his/her designee(s), prior to publication or release. As used herein, the term “Outreach” shall mean all media, social media, news releases, external facing communications, advertising, marketing, promotions, client lists, civic/community events or opportunities, and/or other forms of outreach created by, or on behalf of, GRANTEE (i) that reference or otherwise use the term “Hennepin County” or any derivative thereof; or (ii) that directly or indirectly relate to, reference, or concern the County of Hennepin, this Agreement, the services performed hereunder, or COUNTY personnel, including but not limited to COUNTY employees and elected officials. 23. MINNESOTA LAWS GOVERN The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and their performance. The appropriate venue and jurisdiction for any litigation will be those courts located within the County of Hennepin, state of Minnesota. Litigation, however, in the federal courts involving the parties will be in the appropriate federal court within the state of Minnesota. THIS PORTION OF PAGE INTENTIONALLY LEFT BLANK 4.8 Form 101 (Revised 8/2022) 10 COUNTY ADMINISTRATOR APPROVAL Reviewed for COUNTY by the County Attorney's Office: {{Sig_es_:signer3:signature}} {{userstamp3_es_:signer3:stamp}} Reviewed for COUNTY by: {{Sig_es_:signer4:signature}} {{userstamp4_es_:signer4:stamp}} Document Assembled by: {{Sig_es_:signer1:signature}} {{userstamp1_es_:signer1:stamp}} {{Exh_es_:signer1:attachment:label("Attachments")}} COUNTY OF HENNEPIN STATE OF MINNESOTA By: {{Sig_es_:signer5:signature}} {{userstamp5_es_:signer5:stamp}} 4.8 Form 101 (Revised 8/2022) 11 GRANTEE GRANTEE warrants that the person who executed this Agreement is authorized to do so on behalf of GRANTEE as required by applicable articles, bylaws, resolutions or ordinances.* By: {{Sig_es_:signer2:signature}} {{userstamp2_es_:signer2:stamp}} {{ ttl_es_:signer2:title}} *GRANTEE represents and warrants that it has submitted to COUNTY all applicable documentation (articles, bylaws, resolutions or ordinances) that confirms the signatory's delegation of authority. Documentation is not required for a sole proprietorship. 4.8 Memorandum DATE: December 6, 2022 TO: Mayor and City Council Kim Therres, Assistant City Manager/HR Manager FROM: Jodi Bursheim, Abdo Financial Solutions, LLC SUBJECT: Consideration of Resolutions Adopting the 2023 Property Tax Levies, 2023 budget and 2023 EDA levy Background The City Council has held work sessions to discuss property tax revenues and budget proposals. The outcome of the budget work sessions resulted in a proposed property tax levy increase of 9.5%. The emphasis for the 2023 budget has been to focus on maintaining current service levels, provide competitive wages and benefits to retain quality people to provide effective and efficient services to our residents and businesses and to continue to invest in future capital needs including Parks and Street Improvements. While property taxes support approximately 75% of General Fund activity, they also support parks, street reconstruction and the police revolving fund throughout the city. In addition, pro perty taxes support, through internal service fund allocations, fleet, buildings, and information technology. Other 2023 Budgets Additional discussions were held regarding Special Revenue, Debt Service, Capital Project, Enterprise, and Internal Service Fund budgets. Information regarding these budgets can be found in the 2023 Budget Document. Conclusion The City Council is requested to consider approving the 2023 property tax levy, 2023 Budget and 2023 EDA Levy. Proposed Levy 2023 Proposed 2023 Increase (Decrease) 2023 % Change General levy 13,540,205$ 1,031,687$ 8.25 % Capital Improvements Police Equipment Revolving 161,197 3,160 2.00 Park Improvement 741,057 134,058 22.09 Street Construction 384,221 138,295 56.23 Total Capital Improvements levy 1,286,475 275,513 27.25 EDA 316,200 6,200 2.00 Total levy 15,142,880$ 1,313,400$ 9.50 % 6.1 December 6, 2022 6.1 Maintain current service levels with minimal impact to residents and taxpayers while meeting Council’s four priorities Provide sound financial planning for a two-year budget that ensures continued core services Continue to fund future capital needs including Parks & Street Improvements Monitor economic challenges Provide competitive wages and benefits to retain quality people to provide effective and efficient services to our residents and businesses 6.1 Thriving Business Climate Beautification and branding (seasonal planters, banners, litter clean-up along major corridors) Outreach to prospective businesses and promotion of new business openings Strong Neighborhoods Implementation of Parks Master Plan Home improvement grants and loans Code enforcement Public safety Sound Financial Policies Biennial budget Long term plan Utility Study Welcoming/Inclusive Community Inclusive play areas Joint Community Police Partnerships Continued partnership with embedded domestic advocacy group Community events Partnership with Hennepin County –mental health programming 6.1 2021 2022 2023 2024 % Increase % Increase Adopted Adopted Proposed Proposed for 2023 for 2024 REVENUES Property taxes - operations 12,052,301$ 12,586,094$ 13,697,548$ 15,271,008$ 9%11% Special assessments and other 30,806 52,000 71,950 51,950 38% -28% Licenses and permits 874,704 850,960 932,660 903,860 10%-3% Intergovernmental revenues 1,797,751 1,777,489 1,655,044 1,559,486 -7%-6% Charges for services 663,909 863,853 778,475 796,195 -10%2% Fines & forfeits 158,325 275,000 186,500 186,500 -32%0% Investment income (50,292) 125,000 100,000 100,000 -20%0% Miscellaneous 88,307 68,000 44,500 44,500 -35%0% Other - interfund services transfers in 479,502 505,185 671,295 704,173 33%5% TOTAL REVENUES 16,095,313$ 17,103,581$ 18,137,972$ 19,617,672$ 6%8% EXPENDITURES General Government 2,237,903$ 2,353,195$ 2,573,075$ 2,838,141$ 9%10% Public safety 8,478,735 8,515,723 9,167,039 9,960,741 8%9% Community Development 677,719 742,832 823,802 862,680 11%5% Public works 3,142,032 3,239,980 3,349,557 3,558,026 3%6% Recreation 2,131,805 2,251,851 2,224,499 2,398,084 -1%8% TOTAL EXPENDITURES 16,668,193$ 17,103,581$ 18,137,972$ 19,617,672$ 6%8% 6.1 REVENUES Property taxes 1,111,454$ Special assessments & other 19,950$ Licenses & Permits 81,700$ Intergovernmental revenues (122,445)$ Charges for services (85,378)$ Fines & forfeits (88,500)$ Investment income (25,000)$ Miscellaneous (23,500)$ Other 166,110$ Total 1,034,391$ EXPENDITURES General Government 219,880$ Public safety 651,316$ Community Development 80,970$ Public works 109,577$ Recreation (27,352)$ Total 1,034,391$ 6.1 Revenue 2020 Actual 2021 Actual 2022 Adopted 2023 Proposed % Increase 2023 Property Taxes - Adopted Levy 282,744$ 300,000$ 310,000$ 316,200$ 2% Prior Years' Delinquent Taxes 1,191 1,471 - - Special Assessments*20,107 20,003 - 32,834 Interest Income 79,686 (10,026) 8,000 8,000 0% Miscellaneous Revenue - 273 - - Total Revenue 383,728$ 311,720$ 318,000$ 357,034$ 12% Expenditures 2020 Actual 2021 Actual 2022 Adopted 2023 Proposed % Increase 2023 Personnel Services 312,634$ 330,071$ 307,754$ 271,358$ -12% Professional, Audit & Legal Services 17,163 8,160 20,000 26,000 30% Contractual Services**5,136 77,980 10,000 5,000 -50% Internal Service Fund Charges - 4,568 5,186 5,215 1% Home Improvement Grant Program 40,511 91,470 24,150 25,300 5% Branding and Beautification 10,550 12,228 12,300 20,050 63% Miscellaneous Operating Expenses 3,127 2,437 5,000 5,000 0% Total Expenditures 389,119$ 526,914$ 384,390$ 357,923$ -7% Net Revenue Over (Under) Expenditures (5,392)$ (215,194)$ (66,390)$ (889)$ Cash Fund Balance at Year End Actual*** / Forecast based on budget 2,140,093$ 2,053,388$ 1,986,998$ 1,949,029$ 6.1 The Total City Budget as shown below is the combined budgets of the General, Special Revenue, Capital Project, Enterprise and Internal Service Funds. General Special Revenue Debt Service Capital Projects Enterprise Internal Service Total Budget 2023 Revenue Property Taxes and Special Assessments 13,769,498$ 707,787$ 1,525,000$ 1,516,475$ -$ -$ 17,518,760$ Licenses and Permits 932,660 - - - - - 932,660 Intergovernmental Revenue 1,655,044 - - 428,000 - 32,870 2,115,914 Charges for Services 778,475 - - - 10,865,777 - 11,644,252 Fines and Forfeits 186,500 - - - - - 186,500 Interest Income 100,000 13,000 8,900 45,000 27,000 21,000 214,900 Miscellaneous 44,500 - - - 4,000 - 48,500 Interfund Services 671,295 - - - - 2,259,901 2,931,196 Transfers In - - - - - - - Total Revenue 18,137,972$ 720,787$ 1,533,900$ 1,989,475$ 10,896,777$ 2,313,771$ 35,592,682$ Appropriations General Government 2,573,075$ -$ -$ -$ -$ 1,492,415$ 4,065,490$ Police and Fire 9,167,039 - - - - - 9,167,039 Community Development 823,802 - - - - - 823,802 Public Works 3,349,557 - - - - - 3,349,557 Recreation 2,224,499 - - - - - 2,224,499 Debt Service - - 1,605,634 - - - 1,605,634 Capital Outlay - - - 2,681,699 - 7,785,679 10,467,378 Enterprise Funds - - - - 9,974,870 - 9,974,870 Economic Development Authority - 636,123 - - - - 636,123 Total Appropriations 18,137,972$ 636,123$ 1,605,634$ 2,681,699$ 9,974,870$ 9,278,094$ 42,314,392$ Net Revenue Over (Under) Appropriations 0$ 84,664$ (71,734)$ (692,224)$ 921,907$ (6,964,323)$ (6,721,709)$ Cash balance, January 1 9,842,793$ 2,887,522$ 4,202,518$ 10,228,822$ 8,047,695$ 5,998,741$ 41,208,091$ Cash balance, December 31 9,842,793$ 2,972,186$ 4,130,784$ 9,536,598$ 8,969,602$ (965,582)$ 34,486,382$ *Note: Budget does not reflect internal loan between Enterprise and Internal Service funds. 6.1 •Increase for capital funding of $275K •Local Government Aid loss of $425K ($175K General Fund impact) •American Rescue Plan Act dollars of $2.2M allocated to capital -Police Department construction •West Metro –increase request of $115,000 •Worker compensation and insurance premiums increases •Health insurance –estimated at 13% increase (City and Employees will share in the increase which will be determined during contract negotiations) •Cost of Living (COLA) wage adjustments •Fuel increases –Diesel 50%, Regular 27% •Union contracts not settled 6.1 Anticipated Cost increases for: •Utilities staffing increase –one person for meter maintenance and replacements (Paid for by Utility Funds) •Police staffing increase –Crime Analyst position •Three Elections •Planned capital levy increases •Health insurance increases anticipated •Worker compensation and insurance premium increases Additional potential impacts: •Potential return of LGA •Settled labor agreements •Anticipated increase in investment rates •Property value impacts •Potential increase in permits 6.1 VIDEO https://youtu.be/VwNj2COI7Uc 6.1 2022 Adopted 2022 Increase (Decrease) 2022 % Change 2023 Proposed 2023 Increase (Decrease) 2023 % C hange 2024 Proposed 2024 Increase (Decrease) 2024 % Change General levy 12,508,518$ 424,029$ 3.51 %13,540,205$ 1,031,687$ 8.25 %15,222,508$ 1,682,303$ 12.42 % Capital Improvements Police Equipment Revolving 158,037 - 0.00 161,197 3,160 2.00 164,421 3,224 2.00 Park Improvement 606,999 126,488 26.32 741,057 134,058 22.09 882,753 141,696 19.12 Street Construction 245,926 131,376 114.69 384,221 138,295 56.23 529,047 144,826 37.69 Total Capital Improvements levy 1,010,962 257,864 34.24 1,286,475 275,513 27.25 1,576,221 289,746 22.52 EDA 310,000 10,000 3.33 316,200 6,200 2.00 322,524 6,324 2.00 Total levy 13,829,480$ 691,893$ 5.27 %15,142,880$ 1,313,400$ 9.50 %17,121,253$ 1,978,373$ 13.06 % 6.1 CITY NAME Pay 2022 Pay 2023 $ Change % Change % Population (2021 Met Council Est.) Proposed 2023 Levy Per Capita Per Capita Rank CITY NAMEAdoptedProposedLevyLevyChg. Levy Levy 2022-2023 2022- 2023 Rank Total Levy BROOKLYN CENTER 21,806,231 23,304,015 1,497,784 6.9%5 33,585 $693.88 3 BROOKLYN CENTER BROOKLYN PARK 53,644,808 59,283,878 5,639,070 10.5%3 86,106 $688.50 4 BROOKLYN PARK CRYSTAL 13,829,480 15,142,880 1,313,400 9.5%4 23,083 $656.02 5 CRYSTAL GOLDEN VALLEY 28,141,443 31,332,048 3,190,605 11.3%1 22,334 $1,402.89 1 GOLDEN VALLEY NEW HOPE 18,231,011 19,053,316 822,305 4.5%6 21,870 $871.21 2 NEW HOPE ROBBINSDALE 8,627,374 9,543,863 916,489 10.6%2 14,838 $643.20 6 ROBBINSDALE 6.1 2022 2023 Percent of Change Levy -not including HRA $13,519,480 $14,826,680 9.67% Levy -including HRA $13,829,480 $15,142,880 9.50% Net Tax Capacity $23,635,755 $27,118,123 14.73% Tax Rate 46.32%46.38%0.13% 6.1 https://youtu.be/VwNj2COI7Uc VIDEO 6.1 •Taxes are based on 2022 assessment values •Significant increases in taxable market value -overall total approximately 14% •Shift of increase to residential properties •Increase in levy Property Type 2022 Market Value % Changes Apartment 8.3% Commercial 1.0% Industrial 8.1% Residential Condo 16.3% Residential Single Family 14.0% Residential Duplex/Triplex 20.0% Residential Townhome 10.4% 6.1 Apartment 9%Commercial 6% Industrial 3% Residential 82% Estimated Market Value Allocation 6.1 State provides direct property tax relief to taxpayers Homestead credit refund Renter’s refund Special property tax refund (referred to as the targeting program) Senior Citizen Property Tax Deferral Program. Contact MN Dept of Revenue 651-296-4444 or www.revenue.state.mn.us 6.1 6.1 RESOLUTION NO. 22-______ RESOLUTION APPROVING 2023 BUDGET, 2023 PROPERTY TAX LEVY AND 2023 ECONOMIC DEVELOPMENT AUTHORITY PROPERTY TAX LEVY WHEREAS, the City of Crystal is required by Section 7.05 of the City of Crystal Charter and State law to approve a resolution setting forth an annual tax levy to the Hennepin County Auditor; and WHEREAS, the City Council has met to discuss the 2023 budget and property tax levy and has held the required Public Input meeting in conformance with the requirements of the City Charter and State Statue, and WHEREAS, the Housing and Redevelopment Authority levy is limited to .000185 of taxable market value of all property located within the City of Crystal, and WHEREAS, the City Council has received the proposed budget; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Crystal that the 2023 budget shall be as follows: The Total City Budget as shown below is the combined budgets of the General, Special Revenue, Capital Project, Enterprise, and Internal Service Funds. General Special Revenue Debt Service Capital Projects Enterprise Internal Service Total Budget 2023 Revenue Property Taxes and Special Assessments 13,769,498$ 707,787$ 1,525,000$ 1,516,475$ -$ -$ 17,518,760$ Licenses and Permits 932,660 - - - - - 932,660 Intergovernmental Revenue 1,655,044 - - 428,000 - 32,870 2,115,914 Charges for Services 778,475 - - - 10,865,777 - 11,644,252 Fines and Forfeits 186,500 - - - - - 186,500 Interest Income 100,000 13,000 8,900 45,000 27,000 21,000 214,900 Miscellaneous 44,500 - - - 4,000 - 48,500 Interfund Services 671,295 - - - - 2,259,901 2,931,196 Transfers In - - - - - - - Total Revenue 18,137,972$ 720,787$ 1,533,900$ 1,989,475$ 10,896,777$ 2,313,771$ 35,592,682$ Appropriations General Government 2,573,075$ -$ -$ -$ -$ 1,492,415$ 4,065,490$ Police and Fire 9,167,039 - - - - - 9,167,039 Community Development 823,802 - - - - - 823,802 Public Works 3,349,557 - - - - - 3,349,557 Recreation 2,224,499 - - - - - 2,224,499 Debt Service - - 1,605,634 - - - 1,605,634 Capital Outlay - - - 2,681,699 - 7,785,679 10,467,378 Enterprise Funds - - - - 9,974,870 - 9,974,870 Economic Development Authority - 636,123 - - - - 636,123 Total Appropriations 18,137,972$ 636,123$ 1,605,634$ 2,681,699$ 9,974,870$ 9,278,094$ 42,314,392$ Net Revenue Over (Under) Appropriations 0$ 84,664$ (71,734)$ (692,224)$ 921,907$ (6,964,323)$ (6,721,709)$ Cash balance, January 1 9,842,793$ 2,887,522$ 4,202,518$ 10,228,822$ 8,047,695$ 5,998,741$ 41,208,091$ Cash balance, December 31 9,842,793$ 2,972,186$ 4,130,784$ 9,536,598$ 8,969,602$ (965,582)$ 34,486,382$ *Note: Budget does not reflect internal loan between Enterprise and Internal Service funds. 6.1 BE IT FURTHER RESOLVED that the City Council of the City of Crystal, Hennepin County, Minnesota, that the following sums of money be levied for collection in 2023 upon the taxable property within the City of Crystal for the following purposes: 2023 Adopted Levy General Fund Levy $13,540,205 Capital Improvements Levy 1,286,475 Subtotal 14,826,680 *EDA levy 316,200 Total Levy $15,142,880 *Levy cannot exceed .0185% of estimated market value of all property located within the City of Crystal. And BE IT FURTHER RESOLVED that the Truth in Taxation Public Input meeting will be held on December 6, 2022 and BE IT FURTHER RESOLVED that the City Clerk is hereby authorized and directed to transmit this information to the County Auditor of Hennepin County, Minnesota and the Minnesota Department of Revenue, if applicable, in the format requested as required by law. BE IT FURTHER RESOLVED that the property tax levy for the General Obligation Improvement Bonds Series 2015A are cancelled since there will be sufficient special assessment revenue to make the debt service payments. Adopted by the Crystal City Council this 6th day of December 2022. Reviewed for Administration: Adopted by the City Council December 6, 2022 Kim Therres, Interim City Manager Mayor Attest: Chee Yang, Deputy City Clerk 6.1 Page 1 of 2 ___________________________________________________________________________ FROM: John Sutter, Community Development Director D ATE: December 1, 2022 TO: Kim Therres, Interim City Manager (for December 6 Council meeting) SUBJECT: Public Hearing - Resolution approving an affordable housing Tax Increment Financing (TIF) district for 5240 Apartments (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) On November 15, 2022, the EDA adopted 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. (Attachment 3) PROPOSED TIF DISTRICT Ehlers has prepared a TIF plan (Attachment 4) 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 COUNCIL STAFF REPORT - Public Hearing 5240 West Broadway Resolution approving TIF District #5 (Sand) 6.2 Page 2 of 2 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. • 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 COUNCIL ACTION 1. Hold the public hearing and receive any public comment. 2. Consider adoption of the resolution approving the TIF district (Attachment 5). 6.2 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 6.2 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 6.2 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 6.2 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. 6.2 ATTEST: First Reading: August 16, 2022 Second Reading and Adoption: September 6, 2022 Publication: September 15, 2022 Effective Date: October 15, 2022 dam7, Mayor 6.2 SEP. 6, 2022 SITE PLAN EXCERPTS 6.2 SEP. 6, 2022 BUILDING PLAN EXCERPTS 6.2 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 .04 7, 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 oflndependent 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: I.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 CR 150\225\833507. v I ATTACHMENT 3 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) 6.2 promote ce1tain public purposes and accomplish ce1tain 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 pottions of a project intended for occupancy, in patt, 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 fo1th therein; the Board makes all the findings in the Modification to the Redevelopment Plan and the TIF Plan and the findings set fo1th 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 ce1tification 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 ce1tify 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 fmther 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 C' of Crystal, Minnesota this 15th day of November, 2022. ATTEST: Kim Therres Executive Director CR! 50\225\833507.vl President 6.2 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 4 6.2   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   6.2   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. 6.2   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. 6.2   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. 6.2   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 6.2   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. 6.2   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 6.2   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 6.2   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 6.2   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; 6.2   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. 6.2   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 6.2 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 6.2   Economic Development Authority of the City of Crystal Tax Increment Financing District No. 5 (Sand)  Appendix B: Estimated Cash Flow for the District 6.2 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)6.2 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?6.2 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 6.2   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 6.2   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. 6.2 CR150\225\833508.v1 CITY OF CRYSTAL, MINNESOTA RESOLUTION NO. _____________ 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) 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 (collectively, the “Act”); 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 (TIF) Plan (the “TIF Plan”) for Tax Increment Financing District No. 5 (Sand) (the “TIF District”), a housing 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 City Council of the City 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 Board of Commissioners of the Authority approved the Redevelopment Plan Modification and the TIF Plan for the TIF District on November 15, 2022; and WHEREAS, the City Council has reviewed the contents of the Redevelopment Plan Modification and TIF Plan and on this date conducted a duly noticed public hearing on these documents, at which the views of all interested parties were heard; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Crystal, Minnesota as follows: Section 1. Findings for the Redevelopment Plan Modification for the Project. (a)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 City Council 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 purposes and ATTACHMENT 5 6.2 CR150\225\833508.v1 development activities set forth in the proposed Redevelopment Plan Modification are hereby expanded to include all development and redevelopment activities occurring within the TIF District. (b) It is hereby found and determined that within the Project there exist conditions of obsolescence, underutilization, and inappropriate use of land constituting blight within the meaning of the Act. (c) It is further specifically found and determined that (i) the land within the Project would not be made available for redevelopment without the public intervention and financial assistance described in the Redevelopment Plan Modification; (ii) the Redevelopment Plan Modification will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development and redevelopment of the Project by private enterprise; and (iii) the Redevelopment Plan Modification conforms to the general plan for the development of the City as a whole, and otherwise 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. Section 2. Findings for the Establishment of the TIF District. (a) It is found and determined that it is necessary and desirable for the sound and orderly development of the Project, and for the protection and preservation of the public health, safety, and general welfare, that the authority of the TIF Act be exercised by the City to provide financial assistance to the TIF District and the Project. (b) 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. (c) It is further found and determined, and it is the reasoned opinion of the City, that the development proposed in the TIF Plan could 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 proposed developer was asked for and provided a letter and a proforma as justification that the project would not have gone forward without public financial assistance. (d) The proposed development to be financed in part through tax increment financing is necessary to permit the City to realize the full potential of the Project in terms of housing density, increased housing options in the City, and increased tax base. (e) The increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the 6.2 CR150\225\833508.v1 maximum duration of the TIF 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. The parcels within the TIF District have been vacant since 2007, and with this being 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. (f) The TIF Plan conforms to the general plan for development of the City as a whole and will generally serve to implement policies adopted in the City’s comprehensive plan. The housing development contemplated in the TIF Plan will be in accordance with the existing zoning or approved zoning variances for the property. (g) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development of the TIF District and the Project by private enterprise because it 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; result in additional availability of affordable housing units; eliminate and prevent blight and blighting factors within the Project and City; and help develop an underutilized site in the City. In addition, the proposed development described in the TIF Plan will increase the taxable market valuation in the City. (h) Background information and facts supporting all the above findings are set forth in the TIF Plan, including but not limited to Appendix C, and the TIF Plan and all findings set forth therein are incorporated herein by reference. In reaching its conclusions regarding the TIF Plan, the City Council has also relied upon reports and recommendations of its staff and consultants, information submitted by the developer of the proposed development within the TIF District, as well as the knowledge of members of the City Council gained in hearings upon and during consideration of other matters relating to the proposed development. (i) The City Council elects to calculate the fiscal disparities for the TIF District in accordance with Section 469.177, subdivision 3(b) of the TIF Act, which means that the fiscal disparities contribution will be taken from inside the TIF District. Section 3. Public Purpose. The adoption of the TIF Plan conforms in all respects to the requirements of the Act. The TIF Plan will help facilitate development that will create diverse housing opportunities and increase the number and availability of affordable housing units in the City, eliminate blighting factors and underutilized land in the City, and improve the tax base. The City expressly finds that any private benefit to be received by a private developer is incidental, as the tax increment assistance is provided solely to make the development financially feasible and thus produce the public benefits described. Therefore, the City finds that the public benefits of the TIF Plan exceed any private benefits. Section 4. Approvals; Further Proceedings. (a) The TIF Plan for the TIF District and the Redevelopment Plan Modification are hereby approved and adopted in substantially the form on file at City Hall. Approval of the TIF Plan does not constitute approval of any project or a development agreement with any developer. (b) The City Council authorizes and directs the Authority to file a request for certification of the TIF District with the County Auditor/Treasurer and to file a copy of TIF Plan with the Minnesota Commissioner of Revenue and the Office of the State Auditor as required by the TIF Act. 6.2 CR150\225\833508.v1 (c) The County Auditor/Treasurer is requested to certify the original net tax capacity of the TIF District, as described in the TIF Plan. (d) City staff, advisors, and legal counsel are authorized and directed to proceed with the implementation of the TIF Plan and the Redevelopment Plan Modification and to negotiate, draft, prepare, and present to the City Council for its consideration all further plans, resolutions, documents, and contracts necessary for this purpose. Adopted by the City Council of the City of Crystal, Minnesota this 6th day of December, 2022. Mayor ATTEST: Deputy City Clerk 6.2 DATE: December 1, 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 11/11/22 pay date $61,242.99 MissionSquare Retirement Contribution to employee RHS accounts for 11/11/22 pay date $29,189.07 IRS - EFTPS Federal & FICA withholding taxes for 11/11/22 pay date $66,010.35 Golden Valley JWC September water costs $189,225.65 Kraus-Anderson Construction Co. New public safety building project costs $30,656.11 ECSI System Integrators New public safety building project costs $62,302.00 LOGIS Monthly application support and hosting, network services $43,107.46 Metropolitan Council Environ. Svs Wastewater services for December $142,050.57 West Metro Fire Rescue District November contribution to West Metro Fire $113,656.47 MN PERA Employee & city required contributions for 11/25/22 pay date $63,662.96 IRS - EFTPS Federal & FICA withholding taxes for 11/25/22 pay date $63,230.80 $864,334.43 Description 7.1 7.2 7.2 7.2 7.2 7.2 7.2 7.2 7.2 CCCRRRYYYSSSTTTAAALLL PPPOOOLLLIIICCCEEE DDDEEEPPPAAARRRTTTMMMEEENNNTTT “Service with Compassion, Integrity, & Professionalism” TO: Mayor and Council Members FROM: Stephanie K. Revering, Chief of Police CC: Kim Therres, Interim City Manager DATE: December 1, 2022 SUBJECT: Regular Agenda: December 6, 2022 Council Meeting ___________________________________________________________________________ MMEEMMOORRAANNDDUUMM BACKGROUND As you are aware, in 2021, we partnered with the cities of New Hope and Robbinsdale to share an embedded Hennepin County mental health social worker and we split the costs evenly between our 3 cities and the county. We have learned over these past few years the need for our community to have a full-time mental health social worker and presented this at our budget work session to all of you. CONSIDERATION We are asking for your approval of the Joint Powers Agreement (JPA) where we will split the cost of the embedded mental health social worker with Hennepin County and our share is $60,000. As always, please let me know if you have any questions. Thanks. 7.3 HC# A2211419 1 JOINT POWERS AGREEMENT BETWEEN HENNEPIN COUNTY AND CITY OF CRYSTAL This Joint Powers Agreement (“Agreement”) is made and entered into by and between the County of Hennepin, State of Minnesota (“COUNTY”) on behalf of its Human Services and Public Health Department (“HSPHD”), 300 South Sixth Street, Minneapolis, Minnesota 55487, and City of Crystal (“CITY”) 4141 Douglas Drive North, Crystal, Minnesota 55422, on behalf of it’s police department, (“POLICE DEPARTMENT”) and pursuant to the authority conferred upon them by Minn. Stat. § 471.59. The parties to this Agreement may also be referred to individually as “Party” and collectively as “Parties”. WHEREAS, COUNTY is a political subdivision of the State of Minnesota and its Human Services and Public Health Department is empowered to provide general and emergency public services that support and protect the physical, mental and behavioral health of individuals in Hennepin County; and WHEREAS, CITY is a governmental unit of the State of Minnesota and is empowered to provide general and emergency public services in a manner that supports and protects the physical, mental and behavioral health of individuals in Hennepin County; and WHEREAS, the Parties desire to jointly and cooperatively coordinate their expertise and delivery of services to further the interests of providing follow up care by one full-time Senior Social Worker (SSW) embedded with POLICE DEPARTMENT to prevent reoccurrences of in a manner that most effectively and efficiently supports and protects the physical, mental and behavioral health of individuals in Hennepin County, subject to the terms and conditions of this Agreement. NOW, THEREFORE, in consideration of the mutual promises and benefits realized by each Party, the Parties agree as follows: 1. PURPOSE The purpose of this Agreement is to enable COUNTY to provide social work services to POLICE DEPARTMENT to further the interests of providing follow-up social services in a manner that most effectively and efficiently supports and protects the physical, mental and behavioral health of individuals in Hennepin County as detailed herein, for POLICE DEPARTMENT to secure such services from COUNTY and to establish the terms on which such services shall be provided. 2. PROJECT/PROGRAM A. The Parties shall cooperate and collaborate to perform services associated with the Embedded SSW Program (the “Program”), as further described and outlined in Exhibit A: Description of Services. B. The Parties shall perform at all times in accordance with the provisions herein, including but not limited to the data provisions. 7.3 HC# A2211419 2 3. TERM OF THE AGREEMENT The term of this Agreement shall be from January 1, 2023, through December 31, 2024, unless terminated earlier in accordance with the cancellation/termination provisions of this Agreement. 4. PAYMENT A. POLICE DEPARTMENT shall pay ($60,000) Sixty Thousand dollars for the period January 1, 2023, through December 31, 2023. B. POLICE DEPARTMENT shall pay ($60,000) Sixty Thousand dollars for the period January 1, 2024, through December 31, 2024. C. The one full-time SSW will be hired, employed, and equipped by HSPHD and participate in supervision and training by HSPHD in accordance with local, state, federal, and professional licensure requirements. D. HSPHD shall submit a quarterly invoice to POLICE DEPARTMENT for the previous quarter’s cost of its portion of the full-time SSW position. In the event the SSW position is not staffed for a portion of the billing cycle, the payment shall be prorated accordingly. E. POLICE DEPARTMENT will make payment within thirty-five (35) days from receipt of the invoice. If the invoice is incorrect, defective, or otherwise improper, POLICE DEPARTMEMT will notify HSPHD within ten (10) days of receiving the incorrect invoice. Upon receiving the corrected invoice from HSPHD, POLICE DEPARTMENT will make payment within thirty-five (35) days. F. Further, the Parties expressly agree that neither this Agreement nor either Party’s performance hereunder obligates or commits either Party to enter a subsequent contract or engagement with the other. 5. LIABILITY AND NOTICE A. Each Party shall be liable for its own acts and the results thereof to the extent provided by law and, further, each Party shall defend, indemnify, and hold harmless the other (including their present and former officials, officers, agents, employees, volunteers, and subcontractors), from any liability, claims, causes of action, judgments, damages, losses, costs, or expenses, including reasonable attorney’s fees, resulting directly or indirectly from any act or omission of the indemnifying Party, anyone directly or indirectly employed by it, and/or anyone for whose acts and/or omissions it may be liable, in the performance or failure to perform its obligations under this Agreement. The provisions of Minnesota Statutes, Chapter 466 shall apply to any tort claims brought against COUNTY and/or POLICE DEPARTMENT as a result of this Agreement. 7.3 HC# A2211419 3 B. To the fullest extent permitted by law, action by the Parties to this Agreement is intended to be and shall be construed as a “cooperative activity” and it is the intent of the Parties that they shall be a deemed a “single governmental unit” for the purposes of liability, as set forth in Minnesota Statutes, section 471.59, subdivision 1a(a), provided further that for purposes of that statute, each Party to this Agreement expressly declines responsibility for the acts or omissions of the other Party to this Agreement except to the extent they have agreed in writing to be responsible for the acts or omissions of the other Party. The total liability for the Parties shall not be added together to exceed the limits on governmental liability for a single governmental unit. C. Duty to Notify: Each Party shall promptly notify the other Party of any actual or suspected claim, action, cause of action, administrative action, criminal arrest, criminal charge, or litigation brought against the party, its present and former officials, officers, agents, employees, volunteers, and subcontractors which arises out of this Agreement. 6. INSURANCE Each party warrants that it has a purchased insurance or a self-insurance program sufficient to meet its liability obligations and, at a minimum, to meet the maximum liability limits of Minnesota Statutes Chapter 466. This provision shall not be construed as a waiver of any immunity from liability under Chapter 466 or any other applicable law. 7. INDEPENDENT PARTIES Notwithstanding any other formal, written agreements or contracts which may exist between COUNTY and CITY, nothing is intended or should be construed in any manner as creating or establishing the relationship of partners between the Parties hereto or as constituting either Party as the agent, representative, or employee of the other for any purpose or in any manner whatsoever. Each Party is to be and shall remain an independent contractor with respect to all services performed under this Agreement. Each Party will secure at its own expense all personnel required in performing services under this Agreement. Any personnel of a Party or other persons engaged in the performance of any work or services required by that Party shall have no contractual relationship with the other Party and will not be considered employees of the other Party. No Party shall be responsible for any claims related to or on behalf of the other Party’s’ personnel, including without limitation, claims that arise out of employment or alleged employment under the Minnesota Unemployment Insurance Law (Minnesota Statutes Chapter 268) or the Minnesota Workers' Compensation Act (Minnesota Statutes Chapter 176), or claims of discrimination arising out of state, local, or federal law, against a Party, its officers, agents, contractors, or employees. Such personnel or other persons shall neither require nor be entitled to any compensation, rights, or benefits of any kind from the other Party, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, workers' compensation, unemployment compensation, disability, severance pay, and retirement benefits. 8. NONDISCRIMINATION In accordance with COUNTY’s policies against discrimination, POLICE DEPARTMENT shall not exclude any person from full employment rights or participation in, or the benefits of, any 7.3 HC# A2211419 4 program, service or activity on the grounds of race, color, creed, religion, national origin, sex, gender expression, gender identity, age, disability, marital status, sexual orientation, or public assistance status. No person who is protected by applicable law against discrimination shall be subjected to discrimination. 9. NO THIRD PARTY BENEFICIARY Except as herein specifically provided, no other person, customer, employee, or invitee of any Party or any other third party shall be deemed to be a third party beneficiary of any of the provisions herein. 10. DATA COUNTY and POLICE DEPARTMENT, their officers, agents, owners, partners, employees, volunteers and subcontractors, shall abide by the provisions of the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, and all other applicable state and federal law, rules, regulations and orders relating to data privacy, confidentiality, disclosure of information, medical records or other health and enrollment information, and as any of the same may be amended, as well as the data and data sharing provisions set forth in Exhibit A. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 11. RECORDS – AVAILABILITY/ACCESS Subject to the requirements of Minnesota Statutes section 16C.05, subd. 5, the Parties, the State Auditor, or any of their authorized representatives, at any time during normal business hours, and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records, etc., of the Parties which are pertinent to the accounting practices and procedures of the Parties and involve transactions relating to this Agreement. The Parties shall maintain these materials and allow access during the period of this Agreement and for six (6) years after its expiration, cancellation or termination. 12. MERGER, MODIFICATION, AND SEVERABILITY A. The entire understanding between the Parties is contained herein and supersedes all oral agreements and negotiations between the Parties relating to the subject matter. All items that are referenced or that are attached are incorporated and made a part of this Agreement. If there is any conflict between the terms of this Agreement and referenced or attached items, the terms of this Agreement shall prevail. B. Any alterations, variations or modifications of the provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement signed by the Parties. Except as expressly provided, the substantive legal terms contained in this Agreement including but not limited to Indemnification; Liability and Notice; Merger, Modification and Severability; Default and Cancellation/Termination or Minnesota Law Governs may not be altered, varied, modified or waived by any change order, implementation plan, scope of work, development specification or other development process or document. 7.3 HC# A2211419 5 C. If any provision of this Agreement is held invalid, illegal or unenforceable, the remaining provisions will not be affected. 13. DEFAULT AND CANCELLATION/TERMINATION A. If either Party fails to perform any of the provisions of this Agreement, fails to administer the work so as to endanger the performance of the Agreement or otherwise breaches or fails to comply with any of the terms of this Agreement, it shall be in default. Unless the Party’s default is excused in writing by the non-defaulting Party, the non-defaulting Party may upon written notice immediately cancel or terminate this Agreement as to the defaulting Party or in its entirety. B. This Agreement may be canceled/terminated with or without cause by either Party upon thirty (30) days written notice. Either Party may immediately cancel or terminate this Agreement if the terminating party determines that the health and welfare of a member of the public is at risk. Upon cancellation/termination, property or surplus money, if any, acquired as a result of the operation of this Agreement shall be distributed to the Parties in proportion to contributions of the Parties. C. Either Party’s failure to insist upon strict performance of any provision or to exercise any right under this Agreement shall not be deemed a relinquishment or waiver of the same, unless consented to in writing. Such consent shall not constitute a general waiver or relinquishment throughout the entire term of the Agreement. D. The above remedies shall be in addition to any other right or remedy available to either Party under this Agreement, law, statute, rule, and/or equity. 14. NOTICES Unless the Parties otherwise agree in writing, any notice or demand which must be given or made by a Party under this Agreement or any statute or ordinance shall be in writing, and shall be sent registered or certified mail. Notices to COUNTY shall be sent to the County Administrator at the address given in the opening paragraph of this Agreement with copies to HSPHD asdetailed below. Notice to POLICE DEPARTMENT shall be sent to the address stated in the opening paragraph of this Agreement with a copy as detailed below. HSPHD: Leah Kaiser Director of Behavioral Health and Justice Strategies Hennepin County 300 South 6th Street Minneapolis, Minnesota 55487 leah.kaiser@hennepin.us POLICE DEPARTMENT: Stephanie Revering Chief of Police 7.3 HC# A2211419 6 Crystal Police Department 4141 Douglas Drive North Crystal, Minnesota 55422 15. SURVIVAL OF PROVISIONS Provisions that by their nature are intended to survive the term, cancellation or termination of this Agreement do survive such term, cancellation or termination. Such provisions include but are not limited to: INDEPENDENT PARTIES; LIABILITY AND NOTICE; INSURANCE; DATA; RECORDS-AVAILABILITY/ACCESS; DEFAULT AND CANCELLATION/TERMINATION; MARKETING AND PROMOTIONAL LITERATURE; and MINNESOTA LAW GOVERNS. 16. MARKETING AND PROMOTIONAL LITERATURE POLICE DEPARTMENT agrees that the terms, “Hennepin County” and “Hennepin County Human Services and Public Health Department”, the name of any elected official, or any derivatives thereof, shall not be utilized in any promotional literature or advertisements of any type without the express prior written consent of COUNTY. 17. MINNESOTA LAWS GOVERN The laws of the state of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the Parties and their performance. The appropriate venue and jurisdiction for any litigation will be those courts located within the County of Hennepin, state of Minnesota. Litigation, however, in the federal courts involving the Parties will be in the appropriate federal court within the state of Minnesota. (The remainder of this page intentionally left blank.) 7.3 HC# A2211419 7 The Parties hereto agree to be bound by the provisions set forth in this Agreement. COUNTY OF HENNEPIN Reviewed for COUNTY by the County STATE OF MINNESOTA Attorney’s Office By: Chair of Its County Board Date: ATTEST: Deputy/Clerk of County Board Date: By: Deputy County Administrator Date: City of Crystal By: ___________________________________ Title: _________________________________ Date: __________________________________ By: ___________________________________ Title ___________________________________ Date: __________________________________ 7.3 Contract #A2111401 EXHIBIT A: Description of Services 1 POLICE DEPARTMENT and HSPHD staff will work collaboratively to prevent reoccurrences of crisis calls. Roles and Responsibilities of Parties POLICE DEPARTMENT will: A. Provide office space for the Senior Social Worker (SSW); B. Run DSL lines at designated office space, as needed, if SSW are otherwise unable to access to COUNTY network; C. Work with the HSPHD Social Work Unit Supervisor (SWUS) to establish criteria for referrals; D. Work with the SWUS to develop a referral process; E. Track referrals and repeat calls; F. Track mental health calls that involve weapons, use of force and transportation holds being written; and G. Accompany the SSW to home visits as needed. HSPHD will: A. Provide the SSW with equipment that is necessary for completing their work. This includes, but is not limited to, laptop computer, cell phone, and office supplies; B. Supervise the SSW staff providing services under this Agreement; C. Be responsible for transportation/mileage expenses for the SSW. The SSW will be responsible following the HSPHD transportation/mileage reimbursement policies; D. Provide short-term assistance to individuals in order to connect the individuals with internal and/or community resources to help meet their needs. Services will be provided in an ethical and culturally sensitive manner; E. After being assigned a case, complete a file clearance of the various systems to 7.3 Contract #A2111401 EXHIBIT A: Description of Services 2 determine if the individual is open to social services, county of financial responsibility, and public assistance programs; F. Meet the individual, assess the individual’s needs, note formal and informal supports, and determine where gaps exist; G. Request new or updated diagnostic assessments as needed; H. Conduct an initial assessment that includes the risks to the safety and stability of the individual as well as the individual’s ability to address such concerns. The SSW will also evaluate the need for emergency services and if needed will assist in making those connections; I. Work with the individual to develop an initial plan that addresses gaps that exist in the individual’s support system and will work with the individual to identify and connect with community resources. This plan will be signed by both the individual and the SSW; J. Ensure that release of information forms are signed and that other paperwork is completed in a timely manner; K. Share individually identifiable information with law enforcement only when there is an ongoing emergency situation and the client information is necessary to protect the health or safety of the individual or other people and pursuant to applicable law. Information disclosed shall be limited to that necessary to address the emergency situation. During contact with individuals, the SSW will make a reasonable attempt to obtain a Release of Information (ROI) signed by each individual served, in order to permit relevant information to be subsequently shared with POLICE DEPARTMENT. Without a ROI, individually identifiable information will be shared with POLICE DEPARTMENT only as previously described. L. Collect information needed to determine eligibility for community and/or county resources/services as needed. The SSW will facilitate referrals to appropriate resources; M. Collaborate with other involved parties as indicated; N. Complete the necessary paperwork to transfer the individual to case management if the individual is eligible for COUNTY operated or contracted case management services; O. Document all client related activities; and 7.3 Contract #A2111401 EXHIBIT A: Description of Services 3 P. Track Program data. Program data provided to POLICE DEPARTMENT will be aggregated and/or de-identified in a manner that ensures that no individual may be directly or indirectly identified in any manner. Goals of the Embedded SSW Program include, but are not limited to: A. More timely engagement of SSW with individuals; B. Increased use of community resources to support individuals; C. Increased use of public assistance programs; D. Increased use of non-urgent health care systems; E. Improved engagement of current service providers; F. Ongoing collaboration and learning between HSPHD and POLICE DEPARTMENT; G. Improving the quality of life for those who have encounters with law enforcement; H. Reducing use of force, injury or death to community members and officers; I. Reducing rate of arrests/prosecution of persons in mental health crisis and increase the number of persons who remain in community settings with services and supports; J. Creating cost-savings through reduction of incarceration and hospitalization resulting from mental health crisis; K. Reducing repeat calls and visits for the same issue; L. Improving efficacy of law enforcement response to emergency and non-emergency mental health issues; and M. Increasing public satisfaction with the response to mental health emergencies and other metrics developed utilizing key stakeholder and community input. 7.3 UDC TEXT AMENDMENT PAGE 1 OF 3 ___________________________________________________________________________ FROM: Dan Olson, City Planner TO: Kim Therres, Interim City Manager (for December 6 meeting) DATE: December 1, 2022 RE: Consider first reading of ordinance amendment request from Dan and Debbie Pearson to revise zoning requirements for vehicle sales __________________________________________________________________________ A.BACKGROUND Staff has received a text amendment request from Dan and Debbie Pearson who ow n Premier Motors, a vehicles sales business at 6048 -6058 Lakeland Ave North. The applicants would like to amend the use specific standards for vehicle sales to allow vehicle sales north of Lombardy Lane. On November 14 the Planning Commission held the p ublic hearing and unanimously recommended approval of the text amendment. No one from the public provided comments. Attachment: A.Proposed ordinance amendment B.PROPOSED AMENDMENT Vehicle sales north of Lombardy Lane . The city received a request from Premier Motors at 6048-6058 Lakeland Ave N to allow vehicle sales from Lombardy Lane to a point 368 feet north, encompassing two existing mo tor vehicle sales businesses (attachment A). Currently vehicle sales are allowed as a permitted use in the commercial district, but not north of 56th Avenue (Bass Lake Road). Therefore, vehicle sales at Premier are classified as “legally nonconforming”, which allows for the use to continue but it cannot be expanded. With this change Premier Motors and Jack’s Auto Sales would be able to expand and improve sales lots on their current properties. The aerial photo on the next page shows the two properties. COUNCIL STAFF REPORT UDC Text Amendment 7.4 UDC TEXT AMENDMENT PAGE 2 OF 3 There is precedent for allowing vehicle sales in a smaller area – vehicle sales are allowed to a point 660’ north of the intersection of Winnetka and 36 th Avenues. The zoning map excerpt below shows the properties where vehicle sales would be allowed as a result of this amendment. Jack’s would have to combine 6043 Florida Avenue with their 6030 Lakeland lot to take advantage of this change. 7.4 UDC TEXT AMENDMENT PAGE 3 OF 3 C. REQUESTED ACTION At the November 14 Planning Commission meeting, the Commission held the public hearing and then recommended approval of the UDC text amendment by a vote of 7 to 0 (two members were absent). No one from the public submitted comments on the amendment. City Council first reading of the ordinance in attachment A is requested. The following is the proposed schedule for adopting the text amendment: December 20 Council considers second reading and adoption December 29 Summary of ordinance published January 28 Effective date of ordinance 7.4 1 CR205-30-838004.v3 CITY OF CRYSTAL ORDINANCE #2022-____ AN ORDINANCE REVISING CHAPTER V OF THE CRYSTAL CITY CODE REGARDING LOCATION OF ALLOWED VEHICLE SALES The City of Crystal hereby ordains: ARTICLE I. Chapter V, Subsection 515.19, Subd. 4(l) of the Crystal city code is hereby amended by deleting the stricken material and adding the double underlined material as follows: (l)Vehicle, boat, or recreational sales or rental. Vehicle, boat, or recreational sales or rental is subject to the following standards: (1)The property abuts at least one of the following street segments: (i)Lakeland Avenue/Bottineau Boulevard between the Canadian Pacific Railroad and 56th Avenue North; (ii)Lakeland Avenue between Lombardy Lane and the north lot line of Lot 1, Block 1, Storm’s 1st Addition, said distance approximately 368 feet; (ii)(iii) West Broadway between Corvallis Avenue and 56th Avenue North; or (iii)(iv) Winnetka Avenue between 36th Avenue North and a point 660 feet north of 36th Avenue North; ARTICLE II. Incorporate. City staff is authorized and directed to incorporate the amendments adopted by this Ordinance into the Crystal city code. ARTICLE III. Effective Date. This ordinance is effective upon adoption and 30 days after publication. BY THE CITY COUNCIL Jim Adams, Mayor ATTEST: ____________________________ Chee Yang, Deputy City Clerk Attachment A 7.4 2 CR205-30-838004.v3 First Reading: ____________, 2022 Second Reading: __________, 2022 Council Adoption:_________, 2022 Publication: Effective Date: 7.4 Please hand this form to the City Clerk before the meeting begins.' To provide ample opportunity for all, speaking time is limited to three minutes and topic discussion is limited to 10 minutes. (Information provided on this form is open to the public) (please print clearly) The topic 1 wish to address is: Name:. Address: Zip Code:_ Date Day Phone (optional): I Email (optional): L°��E C -�_�- Thank you for your attendance and participation. . Please hand this form to the City Clerk before the meeting begins. To provide ample opportunity for all, speaking time is limited to three minutes and topic discussion is limited to 10 minutes. (information provided on this form is open to the public) (please print clearly) The topic I wish to address is: Pro( Address: ( lug wry Zip Code: Date: Day Phone (optional): 5JI- 3 Email (optional): Thank you for your attendance and participation. 7� Please hand this form to the City Clerk before the meeting begins. To provide ample opportunity for all, speaking time is limited to three minutes and topic discussion is limited to 10 minutes. (information provided on this form is open to the public) (please print clearly) The topic i wish to address is:_-V�" cL� v, I—Sl� ie.L Name:c��55� Address: � c �4 / Zip Code: f56�D- Date: ka- I G ) Day Phone (optional): GAV q304 Email (optional): AIN Thank you'for your attendance a d participation. Please hand this form to the City Clerk before the meeting begins. To provide ample opportunity for all, speaking time is limited to three minutes and topic discussion is limited to 10 minutes. (information provided on this form is open to the public) (please print clearly) The topic I wish to address is: 161d Name: Address: Y11-% R 4<)'1 O Zip Code: tat 7 Date: /d. 42�0"'.2 Day Phone (optional): I"-'-??'7/7oF- %'1 Email (optional): Thank you for your attendance and participation. Please hand this form to the City Clerk before the meeting begins. To provide ample opportunity for all, speaking time is limited to three minutes and topic discussion is limited to 10 minutes. (Information provided on this form is open to the public) (please print clearly) X The topic 1 wish to address is: Name: A (�('7f"! Address: %Vd ' f Zip Code: ,zl Date: Day Phone (optional): Email (optional):7jf�� Thank you for your attendance and participation.