2026.04.07 Council Meeting Packet
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: April 3, 2026
City Council Meeting Schedule
Tuesday, April 7, 2026
Time Meeting Location
6:30 p.m.
City council work session to discuss:
1. Update on Blue Line Extension 90% plans.*
2. Franchise fees update.*
3. Future park projects.*
4. Social media policy.*
5. Constituent issues update.*
6. New business.*
7. Council comments and announcements.*
Upper Community Room/Zoom
7 p.m. City council meeting Council Chambers/Zoom
Immediately
following the city
council meeting
Economic Development Authority (EDA) meeting Council Chambers/Zoom
Immediately
following the EDA
meeting
Continuation of city council work session, if necessary Upper Community Room/Zoom
Per the requirements of Minnesota Statutes, Section 13D.02, council members may participate by interactive
technology.
The public may attend the meetings via Zoom by connecting through one of the methods identified below.
Topic: Crystal City Council work session, regular meeting and EDA meeting.
Time: April 7, 2026, 6:30 p.m., Central Time (US and Canada)
Join Zoom meeting: https://us02web.zoom.us/j/83244400072?pwd=BDshoK9y50dfur5IOxEesgvGnKaXY8.1
Meeting ID: 832 4440 0072 | Passcode: 4141
Find your local number: https://us02web.zoom.us/u/kwCaHou1f
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: April 3, 2026
City Council
Work Session Agenda
Tuesday, April 7, 2026 | 6:30 p.m.
Upper Community Room/Zoom
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, the Crystal City Council work session was held on Tuesday, April 7, 2026, at _____ p.m.
electronically via Zoom and in the upper community room at city hall, 4141 Douglas Dr., Crystal,
Minnesota. If the agenda items are not completed in time for the regular city council meeting at
7 p.m., the meeting will be continued and resumed immediately following the Economic
Development Authority meeting.
I. Attendance
Council members Staff
____ Cummings ____ Bell
____ Deshler ____ Tierney
____ Eidbo ____ Therres
____ Kamish ____ Elholm
____ Kiser ____ Hubbard
____ Onesirosan ____ Kunde
____ Budziszewski ____ Struve
____ Sutter
____ Serres
II. Agenda
The purpose of the work session is to discuss the following agenda items:
1) Update on Blue Line Extension 90% plans.*
2) Franchise fees update.*
3) Future park projects.*
4) Social media policy.*
5) Constituent issues update.*
6) New business.*
7) Council comments and 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.
Page 1 of 3
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
Posted: April 3, 2026
City Council Meeting Agenda
Tuesday, April 7, 2026
7 p.m.
Council Chambers/Zoom Meeting
The city manager’s comments are in bold.
1. Call to Order, Roll Call, and Pledge of Allegiance
2. Approval of Agenda
The council will consider approval of the agenda.
3. Consent Agenda
The council will consider the following items, which are routine and non-controversial in nature,
in a single motion:
3.1 Approval of the minutes from the following meetings:
a. The city council meeting on March 17, 2026.
b. The city council work session on March 17, 2026.
3.2 Approval of disbursements over $25,000 submitted by the finance department.
3.3 Approval of the list of license applications submitted by the city clerk.
3.4 Adoption of a resolution accepting donations.
3.5 Approval of the appointment of Kelsi McNutt to the Planning Commission.
3.6 Adoption of a resolution authorizing the purchase of a portable generator for the Public
Works Department.
3.7 Adoption of a resolution authorizing the purchase of a replacement engineering truck.
3.8 Adoption of a resolution awarding contracts for the 2026 Utility Reconstruction Project and
professional construction services for the project.
3.9 Adoption of a resolution awarding a contract for the 2026 Mill and Overlay Project.
3.10 Adoption of a resolution entering into an agreement for concrete, bituminous and related
work in Forest School and Woodland parks.
Page 2 of 3
3.11 Adoption of a resolution entering into an agreement for construction of a soccer field in
North Lions Park.
3.12 Adoption of a resolution establishing dates and offices for the 2026 municipal election.
3.13 Adoption of a resolution governing write-in vote counting.
4. 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.)
5. Regular Agenda
5.1 The council will consider the second reading of an ordinance amending the zoning map to
expand the Town Center base district and a resolution approving summary language for
publication.
The proposed rezonings are connected to the Town Center Vision Plan (TCVP), which the City
Council developed in 2025 and approved on Feb. 17, 2026. The plan describes a long-term vision
for how the Town Center area could gradually develop over the next 25 years. Before starting
the planning process, the Council adopted a one-year moratorium on certain development
review applications within the Town Center Core (TC) and Town Center-Planned Development
(TC-PD) areas to give time for the plan to be finalized. As part of implementing the TCVP,
several properties currently within the TC-PD overlay would be rezoned to TC and removed
from the overlay district. At its March 9 meeting, the Planning Commission unanimously
recommended approval of the proposed rezonings. There was no opposition expressed at the
public hearing. On March 17, the City Council approved the first reading of the rezoning
ordinance. Two Council actions are requested on April 7: First, staff recommends approval of
the second reading and adoption of the rezoning ordinance. Second, staff recommends
adopting the resolution approving the summary language for publication.
5.2 The council will consider civil penalties for violation of liquor license regulations by
PurpleRose Lounge Corporation d/b/a PurpleRose Lounge, located at 5526 West Broadway.
In February 2026, staff received notification from the state regarding a liquor license violation
involving PurpleRose Lounge. The violation includes purchasing alcohol from another licensed
retailer for resale. State law requires retailers to purchase alcoholic beverages only from
licensed manufacturers, brewers or wholesalers. This action constitutes violations of both state
law and Crystal City Code 1200.35. Now, the City Council may impose civil administrative
penalties against the license holder for this violation of state law and Crystal City Code. Despite
two previous state violations, this is considered a second liquor violation for PurpleRose
Lounge. According to the City Code, the City Council may impose a penalty of a $1,500 fine and
a five-day license suspension.
6. Council Comments and Announcements
Page 3 of 3
a. The city council will hold a work session on Thursday, April 9 at 6:30 p.m. in the upper
community room at city hall and via Zoom.
b. The next city council meeting is Tuesday, April 21, at 7 p.m. in the council chambers at city hall
and via Zoom.
c. The Crystal Police Department Open House is Saturday, May 2 from 10 a.m. – 1 p.m. at 4141
Douglas Dr. N.
d. The city is accepting applications for several volunteer positions on our boards and
commissions. For more information, please visit go.crystalmn.gov/volunteer.
e. 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.
7. Adjournment
*Denotes no supporting information included in the packet.
Have a great weekend; stay healthy. See you at Tuesday’s meeting.
Crystal City Council meeting minutes March 17, 2026
Page 1 of 3
1.Call to Order
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter,
the Crystal City Council meeting was held on March 17, 2026, at 7:02 p.m. in the council chambers at
city hall, 4141 Douglas Dr. N. in Crystal, MN, and via Zoom. Mayor Deshler called the meeting to order.
Roll Call
Mayor Deshler asked the deputy city clerk to call the roll for elected officials. Upon roll call, the
following attendance was recorded:
Council members present: Cummings, Deshler, Eidbo, Kamish, Kiser and Onesirosan.
Council Member Budziszewski was absent.
City staff present: City Manager A. Bell, City Attorney R. Tierney, Assistant City Manager/HR Manager
K. Therres, Recreation Director J. Elholm, Police Chief B. Hubbard, Deputy Police Chief P. Underthun,
Community Development Director J. Sutter and Deputy City Clerk C. Yang.
Pledge of Allegiance
Mayor Deshler 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 Kiser and seconded by Council Member Cummings to approve the agenda.
Motion carried.
3.Appearances
3.1 Representatives from AGAPE Ministry shared about their work.
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 meeting on March 3, 2026.
b.The city council work session on March 3, 2026.
4.2 Approval of disbursements over $25,000 submitted by the finance department.
4.3 Approval of the list of license applications submitted by the city clerk.
4.4 Adoption of Resolution No. 2026-39, authorizing the purchase of chairs for the Crystal
Community Center.
4.5 Adoption of Resolution No. 2026-40, authorizing a grant application to the Minnesota
Department of Natural Resources for improvements in Valley Place Park.
4.6 Adoption of Resolution No. 2026-41, authorizing three agreements related to development of an
apartment building at 6000 56th Ave. N.: A site improvement agreement with Lotus Pointe GP,
LLC and Woda Cooper Communities III, LLC, a license agreement for vegetation maintenance and
replacement with Lotus Pointe Limited Partnership, and an agreement for maintenance and right
of entry for stormwater facilities with Lotus Pointe Limited Partnership.
4.7 Gambling funds update.
3.1(a)
Crystal City Council meeting minutes March 17, 2026
Page 2 of 3
Moved by Council Member Kiser and seconded by Council Member Kamish to approve the consent
agenda.
Motion carried.
5. Open Forum
No public comment was given during open forum.
6. Public Hearing
6.1 Mayor Deshler announced the purpose of the public hearing:
To receive comment, and the council considered a resolution approving a tax increment financing
(TIF) plan and creation of TIF District No. 6 for redevelopment of the Wells Fargo site at 7000 56th
Ave. N.
Community Development Director John Sutter addressed the council. Ehlers representative Stacie
Kvilvang also addressed the council.
Mayor Deshler opened the public hearing for testimony.
There being no one wishing to appear before the council to give testimony, Mayor Deshler
declared the public hearing closed.
Moved by Council Member Cummings and seconded by Council Member Kiser to adopt the
following resolution:
RESOLUTION NO. 2026 – 42
RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT NO. 1 AND THE TAX INCREMENT FINANCING
PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 6 (WELLS FARGO)
Voting aye: Cummings, Deshler, Eidbo, Kamish, Kiser and Onesirosan.
Absent, not voting: Budziszewski.
Motion carried, resolution declared adopted.
7. Regular Agenda
7.1 The council considered the first reading of an ordinance amending the zoning map to expand the
Town Center base district.
Community Development Director John Sutter addressed the council.
Moved by Council Member Cummings and seconded by Council Member Kiser to adopt the
following ordinance:
ORDINANCE 2026 - 02
AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP
IN CHAPTER V OF THE CRYSTAL CITY CODE
And further, that the second and final reading will be held on April 7, 2026.
Voting aye: Cummings, Deshler, Eidbo, Kamish, Kiser and Onesirosan.
Absent, not voting: Budziszewski.
Motion carried.
3.1(a)
Crystal City Council meeting minutes March 17, 2026
Page 3 of 3
8. Council Comments and Announcements
The council and staff made announcements about upcoming events.
9. Adjournment
Moved by Council Member Cummings and seconded by Council Member Kamish to adjourn the
meeting.
Motion carried.
The meeting adjourned at 7:50 p.m.
___________________________________
Julie Deshler, Mayor
ATTEST:
_____________________________________
Chee Yang, Deputy City Clerk
3.1(a)
Crystal City Council work session minutes March 17, 2026
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter,
the Crystal City Council work session was held at 6:34 p.m. on March 17, 2026, in the upper community
room at city hall, 4141 Douglas Dr. N., Crystal, MN, and via Zoom. Mayor Deshler called the meeting to
order.
I.Attendance
The city manager recorded the attendance for city council members and staff:
Council members present: Cummings, Deshler, Eidbo, Kamish, Kiser and Onesirosan.
Council Member Budziszewski was absent.
City staff present: City Manager A. Bell, City Attorney R. Tierney, Assistant City Manager/HR
Manager K. Therres, Recreation Director J. Elholm, Police Chief B. Hubbard, Community
Development Director J. Sutter and Deputy City Clerk C. Yang.
II.Agenda
The council and staff discussed the following agenda items:
1)Commission candidate interview.
2)Council liaison reports.
At 6:58 p.m., Mayor Deshler recessed the work session.
Mayor Deshler reconvened the work session at 7:57 p.m. to continue discussion of the Council
liaison reports and the following agenda items:
3)Constituent issues update.
4)City manager update.
5)New business.
6)Council comments and announcements.
7)Strategic Plan progress report.
III.Adjournment
The work session adjourned at 9:15 p.m.
Julie Deshler, Mayor
ATTEST:
Adam R. Bell, City Manager
3.1(b)
DATE:March 30, 2025
TO:Adam R. Bell, City Manager
City of Crystal City Council
FROM: Jodi Bursheim, Contracted Finance Director
RE: Expenditures over $25,000
Payee Amount
Finance Professional Services, Supplemental Accounting
and Budget Support, & 2025 Audit Preparation
LMCIT Q2 2026 Workers Compensation Insurance $64,138.00
Metropolitan Council Wastewater Services for April $178,425.72
Waste Management (HRG)New Hope, Brooklyn Center, and Crystal February Recycling $161,386.00
WSB LLC 2026 Reconstruction, GIS Migration, & Park Design $48,235.75
Mansfield Service Partners Fuel for Fleet $27,976.57
North Country Chevrolet Truck 404 Utilities $51,510.60
Northwest Asphalt Inc 2024 Utility Reconstruction $377,841.94
Short Elliot Hendrickson Inc 2024 Utility Reconstruction Management $61,696.00
Hydro-Klean LLC 2025 Sanitary Lining Project $191,509.74
West Metro Fire Rescue District January, February, & March Contribution to West Metro Fire $486,580.83
HealthPartners, Inc.March Health Insurance Premiums $171,129.94
MN PERA Employee & City Required Contributions for 3/13/26 Pay Date $86,854.99
IRS - EFTPS Federal & FICA Withholding Taxes for 3/13/26 Pay Date $86,687.37
$2,089,550.12
Description
Abdo LLP $95,576.67
3.2
Page 1 of 2
City of Crystal Council Meeting
April 7, 2026
Applications for City License
Multiple Animal Kennel/Commercial
Emily Pollnow, 3035 Hampshire Ave. N., Crystal, MN 55428 (Conditional)
Multiple Animal Kennel/Non-Commercial
Jessica Barnhart, 4848 Florida Ave. N., Crystal, MN 55428 (Conditional)
Tracey Videen, 4901 Vera Cruz Ave. N., Crystal, MN 55429 (Conditional)
Rental (new)
3415 Douglas Dr. N. – Rocksolid Holdings LLC (Conditional)
5930/40/50 West Broadway – Park Place off Broadway LLC (Conditional)
6625 45th Ave. N. – Sabrina Primmer (Conditional)
Rental (renewal)
3143 Aguila Ave. N. – Lowell Pitkin
5108 Angeline Ave. N. – Chen Zhou
5945 Elmhurst Ave. N. – Fadel Sakkal
3909 Florida Ave. N. – Charles Hawkinson (Conditional)
4518 Jersey Ave. N. – Invitation Homes (Conditional)
4535 Jersey Ave. N. – Ty Sullivan (Conditional)
6048 Jersey Ave. N. – Invitation Homes (Conditional)
6910 Jersey Cir. N. – Justin Peterson (Conditional)
5132 Lakeside Ave. N. -Luisa Wiegand
3520 Lee Ave. N. – Lance Rosenberg (Conditional)
6804 Lombardy Ln. – Cindy Scherbing (Conditional)
3501 Louisiana Ave. N. – Morada Crystal LLC (Conditional)
5401 Louisiana Ave. N. – HPA II Borrower 2021-1 LLC
5757 Maryland Ave. N. – Jeff Jacobs (Conditional)
3230-3236 Nevada Ave. N. – Thomas Coyle (Conditional)
5621 Perry Ave. N. – Lance Nordin
5510 Quail Ave. N. – James Wu
5731 Regent Ave. N. – Thomas Ruen (Conditional)
5229 Unity Ct. N. – RTO Investments LLC
2721 Vera Cruz Ave. N. – An Nguyen
4301 Welcome Ave. N. – GW Group LLC (Conditional)
3815 Xenia Ave. N. – Distinguished Properties (Conditional)
4227 Zane Ave. N. – MNSF T2 SPE LLC (Conditional)
4360 Zane Ave. N. – AAKT LLC (Conditional)
7224 33rd Ave. N. – Mark Berthelsen (Conditional)
7324 33rd Ave. N. – Scott and Elizabeth Kevitt
6307 34th Ave. N. – Wally Anderson
6502 37th Ave. N. – Charles Hawkinson (Conditional)
6424 45th Ave. N. – Kathryn Blaul (Conditional)
6401 47th Ave. N. – Wren Rentals
3.3
Page 2 of 2
6736 50th Ave. N. – Jason Hoppe
4924 53rd Ave. N. – Cherry Holdings LLC (Conditional)
6604 57th Ave. N. – David Pascoe
7717 59th Pl. N. – Jodi Heiden (Conditional)
6418 61st Ave. N. – Chen Zhou
Tree Trimmer
The Vineland Group, Inc. dba Vineland Tree Care, 2504 25th Ave. S., Minneapolis, MN 55406
3.3
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2026 – ___
RESOLUTION ACCEPTING DONATIONS
WHEREAS, Minnesota Statutes §465.03 requires that all gifts and donations of real or personal property
be accepted only with the adoption of a resolution; and
WHEREAS, said donations must be accepted by a resolution adopted by the City Council.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal to accept the following
donations:
Donors Purpose Amount
Hamza Mohamed General Parks Improvements $10
Michelle Hunt General Parks Improvements $10
BE IT FURTHER RESOLVED, that the Crystal City Council sincerely thanks the above-named for their
generous donations.
Adopted by the Crystal City Council this 7th day of April 2026.
______________________________
Julie Deshler,
Mayor
ATTEST:
_______________________________
Chrissy Serres,
City Clerk
3.4
Memorandum
DATE:
TO:
FROM:
SUBJECT:
April 3, 2026
Mayor and City Council
Adam R. Bell, City Manager
Consider Appointment of Kelsi McNutt to the Planning Commission
____________________________________________________________________
BACKGROUND
The City Council interviewed Kelsi McNutt for appointment to the Planning Commission on
March 17. Following the interview, Kelsi is recommended for appointment to the Planning
Commission to fill a vacant Ward 4 seat, with a term expiring December 31, 2028.
RECOMMENDATION
Recommend a new appointment of Kelsi McNutt to the Planning Commission for a Ward 4 seat
for a term to expire 12/31/28.
ATTACHMENT
Commission Application – Kelsi McNutt (Redacted)
3.5
APPLICATION FOR CITY BOARDS, COMMISSIONS AND TASK FORCES
Return application to: 4141 Douglas Drive N, Crystal MN 55422
Fax: (763) 531-1188; email: commissions@crystalmn.gov
Please check one: [ii New Applicant 0 Reappointment
Thank you for your interest in serving your community as a volunteer. Please indicate below the board,
commission or task force which you would like to be appointed to. (Note eligibility requirements -a
member of a board, commission or task force must be a lawful resident of Crystal and, if required, a resident
of the Council ward from which they are appointed.) Your application will be kept on file for one year.
Iii Charter Commission
D Employee Review Board
D Inclusion and Diversity Commission
~ Parks & Recreation Commission (Ward 4 )
~ Planning Commission (Ward 1.__)
PERSONAL INFORMATION (please print)
Name Kelsi Kristine McNutt
First Middle
D Sustainability Commission (Section _)
D Watershed Mgt Organization -Bassett Creek
D Watershed Mgt Organization -Shingle Creek
D West Metro Fire Board n Metro B!ue Line Extension Working Group
L h f .d . C I 5 .5 years engt o res, ence in rysta __ _
Street Address ______________________ Zip _______ _
Home Phone Work Phone ---------------------------~
Cell. ___________ Email ____________________ _
Employer _______________ Occupation Director of Parks & Recreation
STATEMENT OF INTEREST
Why are you interested in serving on this city board or commission? __________ _
See attached
IMPORTANT ISSUES FACING OUR COMMUNITY
What do you think are the most important issues facing our community over the next several
years? See attached form
Describe what issues and ideas you would like to see addressed by the board, commission or task
force you would like to serve on. _S_e_e_a_t_ta_c_h_e_d_f_o_r_m _____________ _
Page 1 of 3
3.5
COMMUNITY, CIVIC OR VOLUNTEER EXPERIENCE
Please list your volunteer experience. I currently serve on the Certified Public Manager Advisory Board for Hamline Univeristy
and I also serve on the National Independent Health Club Association (my term is up at the end of 2026)
and have previously served on the advisory board for the Women in Leadership certificate program at University of Minnesota Mankato.
ATTENDANCE AND CONFLICT OF INTEREST
Are you aware of the meeting schedule for this board, commission or task force, and are you able
to attend meetings regularly? Yes x No ___ _
For reappointments only: If you have not been able to attend meetings regularly, please explain:
A conflict of interest may arise by your participation in an activity, action or decision from which
you receive or could potentially receive direct or indirect personal financial gain. Do you have any
legal or equitable interest in any business which, in the course of your participation on this board,
commission or task force, could give rise to a conflict of interest? Yes ____ No _X __ _
{If yes, please provide details on a separate sheet of paper.}
As a board, commission or task force member, what issue{s) might cause conflict between your
civic responsibility and personal or professional interests? How would you manage these conflicts?
See attached
NEW APPLICANTS ONLY:
Have you attended and observed a board, commission or task force meeting for which you've
made application?
Yes, on _________ _
(date of meeting)
Not yet, but I will attend a meeting on _4_/1_3_/2_0_2_6 ____ _
(date of meeting}
EDUCATION AND PROFESSIONAL EXPERIENCE
Describe your education and/or professional experience. I have a Bachelors of Fine Arts from Colorado State University,
I am currently attending Hamline University pursuing a Master's degree in Public Administration expecting to graduate in May 2026 ..
I have worked in public service my entire career, specifically in the Parks and Recreation realm, currently I serve as the
Parks and Recreation Director for the City of Shakopee.
REAPPOINTMENTS ONLY:
BOARD, COMMISSION OR TASK FORCE HIGHLIGHTS
Describe a highlight(s) or accomplishment(s) of the board, commission or task force during your
last term. ------------------------------------
Page 2 of 3
3.5
IMPORTANT INFORMATION CONCERNING YOUR APPLICATION
DATA PRIVACY NOTICE: Minnesota law requires that you be informed of the purposes and
intended use of the information you are providing on this application. Pursuant to Minn . Stat.
§13.601, your name, address, length of residence, occupation, education, train i ng , civic affiliations,
qualifications and experience are public data and is available to anyone who requests the
information.
The information you provide will be used to identify you as an applicant, enable us to contact you
when additional information is required, send you notices, and assess your qualifications for
appointment. This data is not legally required , but refusal to supply the information requested
may affect the City Council's ability to accurately evaluate your application.
Should you be appointed to a board, commission or task force, pursuant to Minn. Stat. §13 .601,
your residential address will become public information. In addition, either a telephone number
or email address where you can be reached will become public. The purpose is to list contact
information for board, commission and task force members on a public roster.
Please select which of the following you will allow listed on a public roster (you must select either
email or one phone number):
[i] EMAIL OR PHONE (may choose more than one): D home
0 ALL OF THE ABOVE
Owork Ocell
I have read the data privacy notice given above and authorize investigation into all statements
contained in this application. Furthermore, I authorize the City of Crystal to conduct a criminal
history background check, pursuant to Crystal City Code Section 311 .01, Subd. 2, for purposes of
determining my eligibility for a volunteer position with the City.
MN Dr iver's License or MN State ID Number: ---------------------
Date of birth: ________ If known by previous name, provide:_K_e_ls_i _W_il_ke_s _____ _
~ 3/2/2026
Date
't f ll!•I! !'!!I'!'!'! ~·~·•lflll..!'~I· ~lftllf-t l il-f+l -f<I Jr,.-a ■■ ,,■ ~I ,■■■ 1 1 ■■■:o ■■■■■:o,■■■ • I Ol ■II o:.■■■■ 1 ■■■■• • ~••• ... ~•'!-H-1,•■,r ~••■ •·t·•••• ■■■■■JI ■■■■■,,. ■■■■•,.,o.■■■11 ................ ""f',■'l'I ;,,r-;1 ~••" .,■■■'l-r■■■11·ot ■■■■ --■■■• ~••'!" O.ll'f .... -..... I ■■II r ■■a, l Process ~
: Step 1 Comple te an appl ication . ~ i ~
;=.: Step 2 Ret~r~ the :omp
0
iete~ appl_icatio~ to ci _tyhsthaff .. _
1
~:_
Step 3 PartI cIpate In a 1 -minute interview wit t e city coun cI .
j Step 4 Opt ional : attend the council meeti ng when appo i nt ment is made. :
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CITY USE ONLY: Date received: ____ Lives in ward: Date appointed: ___ ........,· Term expires: ____ _
If applicable, position appointed to (ward/at large/alternate/public member/etc.):. _____________ _
Notes: __________________________________ ~_
!:\Commissions, Boards, Task Forces\Applicants, Interviews, Staff Reports, Vacancies\Application For Board, Commission, Task Force -Current.Doc
Page 3 of 3
3.5
STATEMENT OF INTEREST Why are you interested in serving on this city board or commission?
My husband and I have proudly called Crystal home for over five years and have grown to truly love this
community. It is where we have built friendships, invested our time, and felt a strong sense of belonging.
I would be honored to give back by contributing thoughtfully and helping support decisions that
strengthen Crystal for current and future residents.
I have spent my entire career in public service, and serving others has always been deeply important to
me. I believe strong communities are built when residents step forward to contribute their time,
perspective, and energy. Serving on this commission feels like a natural extension of both my
professional experience and my personal commitment to Crystal.
IMPORTANT ISSUES FACING OUR COMMUNITY What do you think are the most important issues
facing our community over the next several years?
One of the most important issues facing our community over the next several years is navigating the
rapidly changing federal political climate and the uncertainty that can come with it. While many of those
decisions happen beyond the local level, their impact is often felt most directly in our cities. It is
important that, at the local level, residents continue to feel connected, heard, and confident in their
elected and appointed officials. Maintaining transparency, open communication, and thoughtful
decision-making will be key to preserving trust and strengthening our community during times of
change .
Describe what issues and ideas you would like to see addressed by the board, commission or task
force you would like to serve on.
Because I am open to serving on several different commissions, I do not have a single specific issue I am
hoping to advance. Rather, my focus would be on ensuring that the commission is providing thoughtful,
well-informed, and balanced recommendations to the City Council. I believe it is especially important
that recommendations consider long-term community impact, fiscal responsibility, and the experiences
of residents. Above all, I would want the commission's work to strengthen transparency, maintain public
trust, and reflect the best interests of the Crystal community.
As a board, commission or task force member, what issue(s) might cause conflict between your civic
responsibility and personal or professional interests? How would you manage these conflicts?
At this time, I do not foresee any conflicts between my civic responsibilities and my personal or
professional interests. That said , as a lifelong public servant who has worked on the staff side of local
government, I take integrity and ethical standards very seriously. I understand the importance of
maintaining clear boundaries, avoiding even the appearance of a conflict, and prioritizing the public
interest in all decision-making. If a potential conflict were ever to arise, I would address it transparently
and follow all appropriate policies to ensure trust and accountability are upheld.
3.5
COUNCIL STAFF REPORT
DATE: April 7, 2026
FROM: Jesse Struve, Public Works Director / City Engineer
TO: Mayor and City Council
City Manager Adam R. Bell
CC:
RE: Approve Purchase of Portable Generator
Background
The Long-Term Plan includes $150,000 in 2025 for portable generator. The project was delayed until
2026 for budgeting purposes.
Reasons for modernization
•Existing portable generator is 34 years old and only configured for a single voltage.
•Over the past 15 years, all sewer lift stations have been upgraded to 480-volt electrical
systems, which provide cleaner and more reliable power for modern equipment. The
current generator is not wired for 480V and cannot safely or effectively operate any of
our upgraded lift stations.
•We do not have a portable generator capable of powering our 480V upgraded lift
stations.
•We will need to borrow a neighboring community’s generator if there an electrical issue,
but that may not be possible if the issues extends into their communities too.
Staff obtained a quote to replace the generator from Kodiak Power Solutions in the amount of
$116,620.
Requested City Council Action
•Staff recommends approval of Motion to approve the resolution authorizing the purchase of
the portable generator.
Attachment
•Quote from Kodiak Power Solutions
3.6
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2026-
APPROVE PURCHASE OF PORTABLE GENERATOR
WHEREAS, the maintaining and reconstructing City infrastructure is an essential service in the
City of Crystal; and
WHEREAS, the City has developed a long-term plan for the replacement and maintenance
equipment; and
WHEREAS, the City solicited a quote to make necessary upgrades to replace the existing
portable generator; and
WHEREAS, the upgraded generator will be able to power all our lift stations.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal as follows:
1. The Crystal City Council hereby approves the purchase of the new portable generator.
Adopted this 7th day of April 2026.
______________________________
Julie Deshler,
Mayor
ATTEST:
_______________________________
Chrissy Serres,
City Clerk
3.6
Kodiak Power Solutions
1738 Commerce Court
White Bear Lake MN 55110
(651) 728-4095
Estimate 24382015
Estimate Date 3/24/2026
Billing Address
City of Crystal
5001 W Broadway
Crystal, MN 55429 USA
Job Address
City of Crystal- New Public Works
4947 W Broadway
Crystal, MN 55429 USA
Description of work
Jose,
Per your request,
I have attached an estimate for a 80kw meeting the following specs.
-Trailered generator, designed with a 4 position Voltage selector switch, to achieve the desired 480v 3ph Wye and 120/240v
Delta outputs.
Service #Description Quantity Your Price Total
Delivery Freight Cost to move generator from factory to MN.1.00 $950.00 $950.00
Service Customer training, connection of existing pigtail to new generator. Bring
unit to 3 locations to validate phase rotation and operation
1.00 $1,200.00 $1,200.00
Misc 120/240v 3ph Delta- Pin & Sleeve Cable Assembly with 30ft cord. 1.00 $4,522.50 $4,522.50
Misc 480v 3ph- Pin & Sleeve Cable Assembly with 30ft cord. 1.00 $4,493.75 $4,493.75
Misc Cost is to install Pin & Sleeve Receptacle's on the generator. 1.00 $2,625.00 $2,625.00
WIncoGen Winco Generator
RP90F4-XX/1, FPT NEF45 TIER IV FINAL, 110KW, OPEN
SKID
RP90 SWITCHABLE VOLTAGE 4 POSITION
DEEP SEA 7310 CONTROLLER
TRAILER, 10000LB GVWR, RP130
RECEPTACLE PANEL ASSEMBLY RP130
RP130 HOUSING ASSEMBLY
BATTERY CHARGER KIT 24V 8AMP GUEST
BATTERY 12V 650CCA GROUP 24
TOOLBOX INCLUDED ON GENERATOR TRAILER
1.00 $105,828.75 $105,828.75
TRADE Trade in of used equipment 35kw Cummins 1.00 -$3,000.00 -$3,000.00
Sub-Total $116,620.00
Tax $0.00
Total Due $116,620.00
Deposit/Downpayment $0.00
Thank you for choosing Kodiak Power!
THIS IS AN ESTIMATE, NOT A CONTRACT FOR SERVICES. The summary above is furnished by Kodiak Power Solutions as a good faith
estimate of work to be performed at the location described above and is based on our evaluation and does not include material price
increases or additional labor and materials which may be required should unforeseen problems arise after the work has started. I
understand that the final cost of the work may differ from the estimate, perhaps materially. THIS IS NOT A GUARANTEE OF THE FINAL
PRICE OF WORK TO BE PERFORMED. I agree and authorize the work as summarized on these estimated terms, and I agree to pay the
full amount for all work performed.
3.6
COUNCIL STAFF REPORT
DATE: April 7, 2026
FROM: Jesse Struve, PE, Public Works Director / City Engineer
TO: Mayor and City Council
City Manager Adam R. Bell
CC:
RE: Purchase of Engineering Truck
Background
The 2026, LTP includes funding for the replacement of pickup truck #42 and has $50,000
allocated for the purchase of this truck. The existing vehicle is 13 years old and has been used
with our Engineering group to address resident concerns, project inspections, and general travel.
Exiting truck #42 will be re-purposed for our new forester position.
Staff evaluated the current needs for this vehicle and decided to go with a hybrid Ford Maverick
instead of a full-size pickup. This is a smaller and less expensive truck but gets much better
mileage to help meet future sustainability goals. The quote for this vehicle is $29,511.50.
We will need to also purchase a topper, safety lighting systems, and a storage system for this
vehicle. That will raise the total cost by approximately $8,000-$9,000 to the total vehicle
purchase would be approximately $38,500. If we would have purchased a full-size ½ ton pickup,
the cost would have been closer to $50,000 with the same added features. We also anticipate
saving approximately $4,500-$5,000 in fuel costs over the life of the vehicle as well.
This vehicle will be purchased from Saxon Fleet Services for the price of $29,511.50 (State
contract #256523) and a total price of $38,500 after accessories are added.
Requested City Council Action
Staff recommend approval of motion to approve the resolution approving the purchase of this
vehicle and its accessories.
3.7
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2026-
APPROVE PURCHASE OF ENGINEERING TRUCK
WHEREAS, the maintaining and reconstructing City infrastructure is an essential service in the
City of Crystal; and
WHEREAS, the City has developed a long-term plan for the replacement and maintenance of
vehicles in the fleet; and
WHEREAS, the City solicited quotes for the replacement of the vehicle and accessories; and
WHEREAS, the purchase of this vehicle improves operational capabilities while coming in under
the existing budget.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal as follows:
1. The Crystal City Council hereby approves the purchase of a Ford Maverick pickup and
accessories in the amount of $38,500.
Adopted this 7th day of April 2026.
______________________________
Julie Deshler,
Mayor
ATTEST:
_______________________________
Chrissy Serres,
City Clerk
3.7
3.7
3.7
3.7
COUNCIL STAFF REPORT
DATE: April 7, 2026
FROM: Jesse Struve, PE, Director of Public Works / City Engineer
TO: Mayor and City Council
City Manager Adam R. Bell
CC:
RE: Award Construction Contract to GMH and Award Professional Service Contract to WSB
for the 2026 Utility Reconstruction Project
Background
The council approved the 2026 Utility Reconstruction Plans and authorized staff to go out for bid
on March 3, 2026. We opened bids on March 24, 2026 but only received one bid for the project.
After talking with several contractors about why they didn’t submit bids, we found out there
were several projects bidding at the same time. They were selective on what they submitted for
and since our project was smaller, they focused on the larger projects.
While it is not typically good to only get one bid, the price submitted by GMH was under the
engineering estimates. GMH is also a well-qualified contractor to complete the work on time.
WSB reviewed the bid submitted and determined it was a solid bid and that if we rebid the
project, they could not guarantee it would come in lower. This is because as contractors fill up
their schedules, they will put higher prices on the later projects. After discussing our options
with WSB, staff recommend awarding the contract to GMH in the amount of $1,926,175.88.
The consulting firm WSB provided us with design, construction inspection, and construction
administration for the 2025 Utility Reconstruction project. They provided the City high value for
the money spent. WSB provided staff with an estimated of $218,748 to perform the
construction survey, testing, construction inspection, and construction administration.
Requested City Council Action
Staff recommend the award of the construction contract to GMH in the amount of
$1,926,175.88 and the professional service contract to WSB in the amount of $218,748 for the
2026 Utility Reconstruction Project.
Attachments:
•WSB recommendation letter
•WSB proposed costs for construction services
3.8
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2026-
AWARD CONTRACT TO GMH AND AWARD PROFESSIONAL SERVICE
CONTRACT TO WSB FOR 2026 RECONSTRUCTION PROJECT
WHEREAS, the maintaining and reconstructing City infrastructure is an essential service in the
City of Crystal; and
WHEREAS, the City has developed a long-term plan for the replacement and maintenance of
city infrastructure including the roads, utilities, and fleet; and
WHEREAS, the City had WSB create plans for the 2026 Utility Reconstruction Project; and
WHEREAS, this project improves an area of the city where there have been infrastructure
issues.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal as follows:
1. The Crystal City Council hereby awards the contract to GMH and awards the professional
service contract to WSB for the 2026 Utility Reconstruction Project.
Adopted this 7rd day of April 2026.
______________________________
Julie Deshler,
Mayor
ATTEST:
_______________________________
Chrissy Serres,
City Clerk
3.8
178 EAST 9TH STREET | SUITE 200 | ST. PAUL, MN | 55101 | 651.286.8450 | WSBENG.COM March 25, 2026
Honorable Mayor and City Council
City of Crystal
4141 Douglas Drive N
Crystal, MN 55422
Re: 2026 Street & Utility Reconstruction Project
City of Crystal
WSB Project No. 032023-000
Dear Mayor and Council Members:
Bids were received for the above-referenced project on Tuesday, March 24, 2026, and were
opened and read aloud. One bid was received. The bid was checked for mathematical
accuracy. Please find enclosed the bid summary indicating the low bid as submitted by GMH
Asphalt Corporation, Chaska, Minnesota, in the amount of $1,926,175.88. The Engineer’s
Estimate was $1,977,661.00.
WSB followed up with two contractors to understand why only one bid was received. The main
reason given was that multiple large-scale projects were bidding during the same week, which led
contractors to be selective about which projects to pursue. As this project is smaller in scale,
contractors opted to focus their bids on larger projects. GMH is well-qualified to complete the
work, and their bid is below our engineer's estimate. WSB is confident that GMH can complete
the project on time and on budget.
We recommend that the City Council consider this bid and award a contract for the base bid and
alternate in the amount of $1,926,175.88 to GMH Asphalt Corporation, based on the bid results
received.
Sincerely,
WSB
Nick Guilliams, PE
Senior Project Manager
Attachments
ams
3.8
Project Manager
Construction
Project Lead
Inspector
Environmental
Compliance
Two Person
Survey Crew
Senior Survey
Technician Clerical
Nick Guilliams Lucas Gross Jim Baraich Anne Sill Total
WORK TASK Hours Cost
Description
PROJECT MANAGEMENT
Project Management/Change Management/CA 48 8 56 $13,984.00
Submittal Review/Shop Drawing Review/RFI/Plan Updates 28 28 $7,728.00
CONTRACT ADMINISTRATION
Pre-Construction Conference 4 3 7 $1,509.00
Private Utility Meetings 12 12 $3,312.00
Weekly Meeting (Assume 1 meeting a week for 14 weeks)35 35 $9,660.00
Monthly Pay Estimates (4 estimates)10 8 18 $3,496.00
Final Pay Voucher 2 3 5 $828.00
Final Documentation 4 4 $1,104.00
CONSTRUCTION INSPECTION SERVICES
Pre-Project Inspection / Removal Measurements 16 16 $2,160.00
Construction Inspection (14 weeks full time inspection)770 770 $103,950.00
Punchlist / Final Inspection / Final Paving in 2027 32 32 $4,320.00
Record Plan Measurements 8 8 $1,080.00
CONSTRUCTION SURVEYING SERVICES
Construction Survey 90 90 $24,750.00
Office Support 9 9 $1,791.00
Record Plans 8 24 32 $6,976.00
ENVIRONMANTAL
Weekly NPDES Inspections (1.5 hour per week, for 20 weeks)35 35 $4,970.00
On Site Documentation (1 hours per week, for 20 weeks)20 20 $2,840.00
Post Rain Event Inspections (Assume 1 rain event every other week) 20 20 $2,840.00
Assume 14 weeks construction inspection, 5 days per week, 11 hours per day.
Total Hours 143 829 75 98 33 19 1197 $197,298.00
Hourly Costs 2026 276.00 135.00 142.00 275.00 199.00 92.00
WSB SALARY COSTS $39,468.00 $111,915.00 $10,650.00 $26,950.00 $6,567.00 $1,748.00 $197,298.00
Materials Testing $21,450.00
TOTAL CONSTRUCTION SERVICES PROJECT COST $218,748.00
TOTAL PROJECT COST $218,748.00
WSB
ESTIMATE OF COST - 2026 Street and Utility Reconstruction Project
Crystal, Minnesota
3.8
COUNCIL STAFF REPORT
DATE: April 7, 2026
FROM: Jesse Struve, PE, Director of Public Works / City Engineer
TO: Mayor and City Council
City Manager Adam R. Bell
RE: Award Contract for 2026 Mill & Overlay S.3934
Summary
The 2026 Street Maintenance Fund allocated $912,000 for asphalt reconditioning (2-inch
mill and overlay and includes minor concrete curb and gutter repair. Bids were opened on
March 31, 2026, and GMH Asphalt Corporation was the winning bidder with a low bid of
$638,432.86. Seven bids were received and bid results of top bids are as follows:
Contractor Base Bid Alt Bid
(Hampshire Ave)
Total
GMH Asphalt $463,381.45 $175,051.41 $638,432.86
Valley Paving $461,979.50 $176,816.30 $638,795.80
Bituminous Roadways $535,426.42 $214,194.20 $749,620.62
North Valley $544,660.68 $212,357.50 $757,018.18
Engineer Estimate $592,318.50 $247,957.25 $840,275.75
The project consists of milling and overlaying approximately 2 miles of road in the south half
of the Valley Place neighborhood including an alternative bid for Hampshire Ave N. The
roads were originally reconstructed in the early 2010’s and need a mill and overlay to
maintain the condition of the road. This will help extend the life of the roads and maximize
the initial investment of the reconstruction.
Project Cost
The total proposed project cost is $792,422.40 which includes bituminous resurfacing,
concrete curb and gutter repair, and the community center north parking lot. This project is
in the Long-Term Plan and there will be no special assessments for this project.
Project Schedule
If awarded by the council, it is anticipated the project will start in May with an anticipated
project completion date of late September.
3.9
Communication
Staff will send out a letter to all residents in the project area notifying them of the upcoming
project, key city contacts, and how to receive weekly email updates.
Recommended Action
It is staff’s recommendation to award the contract to GMH Asphalt Corporation was the
winning bidder with a low bid of $792,422.40, including the alternative bids for Hampshire
Ave N.
Attachment
• Resolution to award the contract and alterative bids.
• Project Location Map
3.9
RESOLUTION NO. 2026 - ______
AWARD CONTRACT FOR 2026 MILL AND OVERLAY PROJECT
WHEREAS, the City is committed to providing a reliable transportation system; and
WHEREAS, regular maintenance is a routine part of providing for a reliable transportation
system; and
WHEREAS, the 2026 Street Maintenance Fund allocated funds for bituminous surface
reconditioning; and
WHEREAS, plans and specifications have been prepared by the Public Works Department; and
WHEREAS, bids were opened with GMH Asphalt Corporation having the low bid of
$638,432.86 including the bid alternatives for Hampshire Ave. N.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal as follows:
1. The Crystal City Council awards of the 2026 Mill and Overlay project to GMH Asphalt
Corporation with a low bid of $638,432.86.
Adopted this 7th day of April 2026.
Julie Deshler, Mayor
ATTEST:
____________________________
Christina Serres, City Clerk
3.9
3.9
COUNCIL STAFF REPORT
DATE: April 1, 2026
FROM: John Elholm, Recreation Director
Brad Fortin, Parks and Facilities Superintendent
TO: Mayor and City Council
City Manager Adam R. Bell
RE: Improvements in Forest School and Woodland Parks
Background
Improvements in both Forest School and Woodland Parks are scheduled in 2026. A public
engagement process took place in 2025 that included concepts being discussed at a meeting in each
park, sharing plans online for public comment and monthly review by the Parks and Recreation
Commission. Quotes were sought and have been received for installation of concrete and
associated work related to shelters, sidewalks and trails in both parks. Additional project costs
include the play area and shelter structures, which have already been ordered.
Budget
The 2026 long-term capital plan (park improvement fund) includes $425,000 for each park, plus
$75,000 for trail work; and a Hennepin County Youth Activities (HCYA) playground grant of $200,000
for Forest School Park has also been approved. Due to the outside funding, actual city expenses will
be less than what shows in the long-term plan.
Six quotes were received, with the lowest quote being submitted by Odesa II in the amount of
$170,819. This quote is within the project budget. The engineers estimate was $174,985. Odesa II
is the same company that built Broadway, Twin Oaks and other parks in Crystal.
Requested City Council Action
Staff recommends approval of the attached resolution, entering into an agreement with Odesa II, in
the amount of $170,819; for improvements in Forest School and Woodland Parks.
3.10
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2026-xx
RESOLUTION IN SUPPORT OF IMPROVEMENTS
IN FOREST SCHOOL AND WOODLAND PARKS
WHEREAS, the City of Crystal jointly operates Forest School Park with Robbinsdale Area Schools and
owns and operates Woodland Park; and
WHEREAS, the 2026 capital improvement plan (park improvements) includes funding for
improvements in Forest School and Woodland Parks; and
WHERAS, A Hennepin County Youth Activities grant has been approved for the Forest School part of
this project; and
WHEREAS, a public engagement process took place in 2025 that included concepts being discussed
at a meeting in Forest School Park in July and Woodland Park in August, sharing plans online for
public comment and regular review by the parks and recreation commission; and
WHEREAS, six quotes were received for concrete, bituminous and related work in Forest School and
Woodland Parks; and
WHEREAS; the lowest quote was received from Odesa II in the amount of $170,819.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal:
A. To enter into an agreement with Odesa II, in the amount of $170,819; for concrete,
bituminous and related work in Forest School and Woodland Parks.
B. To hereby authorize the mayor and city manager to sign agreements with Odesa II for this
project.
Adopted this 7th day of April 2026.
______________________________
Julie Deshler,
Mayor
ATTEST:
_______________________________
Chrissy Serres,
City Clerk
3.10
Forest School and Woodland Parks Concrete Installation – Odesa II, LLC
CONCRETE INSTALLATION AGREEMENT
FOREST SCHOOL & WOODLAND PARKS
THIS CONCRETE INSTALLATION AGREEMENT (“Agreement”) is made and entered into this
7st day of April, 2026, by and between the City of Crystal, a Minnesota municipal corporation, located
at 4141 Douglas Drive North, Crystal, Minnesota 55422 (“City”), and Odesa II, LLC, a Minnesota
company, located at 8822 30th Avenue NE, Sauk Rapids, MN 55379 (“Contractor”). The City and
the Contractor may hereinafter be referred to individually as a “party” or collectively as the “parties.”
RECITALS
A. The City desires to have concrete flatwork, play area curbs, footings and related items
installed at Forest School Park, a park jointly operated by the City and Robbinsdale Area
Schools located at 7001 48th Avenue North, Crystal, MN 55428; and at Woodland Park, a
City Park located at 4510 35th Ave N, Crystal, MN 55422. ("Parks").
B. The Contractor provided the City a written quote to install concrete in the park with
specifications established by the City ("Project").
C. The Contractor desires to undertake and complete the Project for the City in accordance with
the terms and conditions of this Agreement.
AGREEMENT
In consideration of the mutual promises and agreements contained herein, and intending to be
legally bound, the City and the Contractor hereby agree as follows:
1. Scope of Work.
a. The Contractor, for and in consideration of the payment or payments herein specified
and to be made by the City, covenants and agrees to furnish all materials, all necessary
tools, and equipment, and to do and perform all the work and labor necessary to
complete the Project, all in strict conformity with the Contractor’s quote and scope of
work contained in the attached Exhibit A (all work, materials and equipment set forth
in this paragraph and contained in Exhibit A are hereinafter collectively referred to as
the “Specifications”). Said Specifications are hereby fully incorporated as part of this
Agreement.
b. The Contractor agrees that all work and labor shall be done in the best and most
diligent manner and that all materials and labor shall be in entire and strict conformity
in every respect with the said Specifications and shall be subject to the inspection and
approval by the proper authorities of the City for the supervision of the work, and in
case any of said material or labor shall be rejected by the City as defective or
unsuitable, then the materials shall be removed and replaced with other approved
materials and the labor shall be done anew to the satisfaction and approval of the City
at the cost and expense of the Contractor.
3.10
Forest School and Woodland Parks Concrete Installation – Odesa II, LLC
c. The Contractor agrees to make good, replace, and renew at the Contractor’s own cost
and expense any loss or damage to the work and Project occurring during the
installation or prior to the final acceptance thereof by the City, by reason of fire,
tornado, theft, or any cause whatsoever, and to be wholly responsible for the
installation, completion and delivery of the Project in its entirety for the final
acceptance by the City; and any payment or payments made to the Contractor
hereunder, shall not be construed as operating to relieve the Contractor from
responsibility for the construction and delivery of the Project as provided and agreed
through this Agreement.
2. Schedule; Liquidated Damages.
a. The Contractor agrees to commence the work on the Project at the earliest practicable
date and to prosecute the same diligently and without delay and to have the work
entirely completed in every respect to the satisfaction and approval of the City on or
before August 28, 2026. In case of the failure on the part of the Contractor, for any
reason except with the written consent of the City, to complete the Project on or before
said date, the City shall have the right to deduct from any money due or which may
become due to the Contractor, the amount of two hundred dollars ($200.00) per day
for each and every day elapsing between the time stipulated for the completion and
the actual date of completion, in accordance with the terms thereof; or if no moneys
shall be due the Contractor, the City shall have the right to recover such sum; such
deduction to be made or such sum to be recovered not as a penalty, but as liquidated
damages. The Contractor agrees that it will be difficult for the City to determine the
amount of all damages that the City would incur as a result of delay and that the
liquidated damages set forth in this paragraph are reasonable.
b. The Contractor agrees to notify the City in writing of any and all causes of delay of
work, or any part thereof, within 24 hours after such cause of delay shall arise, and in
case of the failure of the Contractor to perform this Agreement and complete the work
at the time hereinafter specified, the City may immediately, or at any time thereafter,
proceed to complete the work at the cost and expense of the Contractor. Upon receipt
of written notice from the Contractor of the existence of causes over which the
Contractor has no control and which must delay the completion of the work, including
without limitation, fire, flood, epidemic, strikes, wars, acts of God, acts of public
authorities, or delays or defaults caused by public carriers, the City shall reasonably
extend the date previously specified for the completion of the work and in such case
the Contractor shall only become liable for such liquidated damages for failure to
perform during any delay after the time is so extended.
3.10
Forest School and Woodland Parks Concrete Installation – Odesa II, LLC
3. Compensation.
a. This is a lump sum agreement. The City agrees to pay the Contractor the lump sum
identified in the Contractor’s quote, which is attached hereto as Exhibit A. If the
Contractor properly performs the work, the City shall, from month to month before
completion of the work and pursuant to invoices from the Contractor, pay the
Contractor up to 95 percent of the amount already earned under the Agreement. When
the work is 95 percent or more completed, upon the sole determination of City staff,
such portions of the retained price shall be released only as the City determines it need
not be retained to protect the interest of the City in the satisfactory completion of the
Agreement. The balance shall be retained by the City until the final performance and
completion of this Agreement by the Contractor to the satisfaction, approval, and
acceptance of the City including provision by the Contractor of Minn. Dept. of
Revenue Form IC-134 or other authorized proof of the Contractor’s compliance with
applicable state laws.
b. No claim for extra work done or materials furnished by the Contractor will be made
by the Contractor or allowed by the City, nor shall the Contractor do any work or
furnish any materials not covered by the Specifications, unless such work or materials
is ordered in writing by the City. Any such work or materials which may be done or
furnished by the Contractor without such written order first being given, shall be at
the Contractor's own risk and expense.
4. Non-Discrimination. The Contractor agrees that in the hiring of common or skilled labor for
the performance of any work under this Agreement or any subcontract hereunder, no
contractor, material supplier, or vendor, shall, by reason of race, color, sex, creed, national
origin, disability, age, sexual orientation, status with regard to public assistance, or religion,
discriminate against any person or persons who are qualified and available to perform the
work to which such employment relates; that neither the Contractor nor any subcontractor,
material supplier, or vendor, shall in any manner discriminate against, or intimidate, or prevent
the employment of any such person or persons from the performance of work under this
Agreement or any subcontract hereunder on account of race, color, sex, creed, national origin,
disability, age, sexual orientation, status with regard to public assistance, or religion.
5. Insurance. The Contractor shall maintain commercial general liability coverage for all work
covered under the Agreement in at least the amounts of $1,500,000.00 per occurrence for
combined bodily injury and property damage, and $2,000,000 in the general aggregate, and
commercial automobile liability insurance in at least the amount of $1,000,000 per occurrence
for combined bodily injury and property damage covering owned, non-owned, and hired
automobiles. The Contractor shall provide the City with a current certificate of insurance
listing the City as an additional insured with respect to the aforementioned policies. To meet
the requirements herein, the Contractor may use a combination of excess and umbrella
coverage. The Contractor also agrees to keep in force during the entire term of this Agreement
statutory workers’ compensation insurance.
3.10
Forest School and Woodland Parks Concrete Installation – Odesa II, LLC
6. Indemnification. The Contractor hereby agrees to indemnify, defend and hold the City and
its officers, elected and appointed officials, employees, administrators, commissioners,
agents, and representatives harmless from and indemnified against any and all loss, costs,
fines, charges, damage and expenses, including, without limitation, reasonable attorneys’ fees,
consultants’ and expert witness fees, and travel associated therewith, due to claims or
demands of any kind whatsoever (including those based on strict liability) only to the extent
caused by and arising out of (i) the activities contemplated by this Agreement, (ii) including,
without limitation, any claims for any lien imposed by law for services, labor or materials, or
(iii) by reason of the execution of this Agreement or the performance of this Agreement. The
Contractor, and the Contractor’s successors or assigns, agree to indemnify, defend and save
the City, and its officers, agents, and employees, harmless from all such claims, demands,
damages, and causes of action and the costs, disbursements, and expenses of defending the
same, including but not limited to, attorneys’ fees, consulting engineering services, and other
technical, administrative or professional assistance. The Contractor further agrees to
indemnify the City and hold it harmless from and against any and all claims, suits, and actions
against, and all loss, damage, costs, or expense to the City occasioned by or arising from any
infringement or claim of infringement of any letters patent, or patent rights upon or covering
any patented article or articles furnished or installed by the Contractor under this Agreement
for the City, of from or by reason of the use by the City of any patented article or articles
furnished or installed by the Contractor for the City under this Agreement. The indemnity
contained in this paragraph shall be continuing and shall survive the performance or
cancellation of this Agreement. Nothing in this Agreement shall be construed as a limitation
of or waiver by the City of any immunities, defenses, or other limitations on liability to which
the City is entitled by law, including but not limited to the maximum monetary limits on
liability established by Minnesota Statutes, Chapter 466, or otherwise.
7. Independent Contractor. The Contractor and its employees are not employees of the City.
Nothing in the Agreement is intended or should be construed in any manner as creating or
establishing the relationship as employer/employee, co-partners, or a joint venture between
the City and the Contractor. It is agreed that the Contractor and its employees will act as an
independent contractor and acquire no rights to tenure, workers’ compensation benefits,
unemployment compensation benefits, medical and hospital benefits, sick and vacation leave,
severance pay, pension benefits or other rights or benefits offered to employees of the City.
The manner in which the Project is to be performed shall be controlled by the Contractor;
however, the nature of the services and the results to be achieved shall be specified by the
City.
8. Termination. The City may terminate this Agreement upon 30 days’ written notice, except
that if the Contractor is in default and fails to cure the default within ten days following written
notice by the City, the City has the right to terminate this Agreement immediately upon written
notice of termination. The Contractor will be paid for services properly rendered and
equipment property installed prior to the effective date of termination. The following
provisions of this Agreement shall survive expiration, termination, or cancellation of this
Agreement: Indemnification; Insurance; Governing Law; Data Practices; and Audit.
3.10
Forest School and Woodland Parks Concrete Installation – Odesa II, LLC
9. Amendments. Any amendment to this Agreement must be in writing and signed by both
parties.
10. Assignment. No assignment or attempted assignment of this Agreement or of any rights
hereunder shall be effective without the prior written consent of the City.
11. Authority. Each of the undersigned parties warrants it has the full authority to execute this
Agreement.
12. No Personal Liability. No officer, agent or employee of the City shall be personally liable
to the Contractor, or any successor in interest, in the event of any default or breach by the City
on any obligation or term of this Agreement.
13. Notices. Any notice, demand, or other communication under this Agreement by either party
to the other shall be sufficiently given or delivered if it is dispatched by registered or certified
mail, postage prepaid, return receipt requested, or delivered personally to the addresses listed
in the preamble to this Agreement, or at such other address with respect to either such party
as that party may, from time to time, designate in writing and forward to the other as provided
in this section.
14. No Agency. The Contractor acknowledges that nothing contained in this Agreement nor any
act by the City or the Contractor shall be deemed or construed by the Contractor or by any
third person to create any relationship of third-party beneficiary, principal and agent, limited
or general partner, or joint venture between the City and the Contractor.
15. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall constitute one and the same instrument.
16. Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the state of Minnesota. Any disputes, controversies, or claims arising out of this
Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this
Agreement waive any objection to the jurisdiction of these courts, whether based on
convenience or otherwise.
17. Compliance with Laws. The Contractor warrants that all work performed pursuant to this
Agreement shall be in compliance with all federal, state and local laws, ordinances,
regulations, rules, and standards.
18. Entire Agreement. This Agreement, any attached exhibits and any addenda or amendments
signed by the parties shall constitute the entire Agreement between the City and Contractor,
and supersedes any other written or oral agreements between and City and Contractor.
19. Severability. In the event that any one or more of the provisions of this Agreement, or any
application thereof, shall be found to be invalid, illegal or otherwise unenforceable, the
validity, legality, and enforceability of the remaining provisions in any application thereof
shall not in any way be affected or impaired thereby.
3.10
Forest School and Woodland Parks Concrete Installation – Odesa II, LLC
20. Waivers. No failure by any party to insist upon the strict performance of any covenant, duty,
agreement, or condition of this Agreement or to exercise any right or remedy consequent upon
a breach thereof, shall constitute a waiver of any such breach of any other covenant,
agreement, term, or condition, nor does it imply that such covenant, agreement, term or
condition may be waived again.
21. Data Practices. Any and all data created, collected, received, stored, used, maintained, or
disseminated by the parties pursuant to this Agreement shall be administered in accordance
with, and is subject to the requirements of the Minnesota Government Data Practices Act,
Minnesota Statutes, Chapter 13.
22. Audit. The Contractor agrees that the City, the Minnesota State Auditor, and Minnesota
Legislative Auditor, or any of their duly 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, and records
that are relevant and involve transactions relating to this Agreement for six years following
termination of this Agreement.
IN WITNESS THEREOF, the parties hereto have executed this Agreement as of the day
and year written above.
CITY: CONTRACTOR:
By: By:
Julie Deshler
Its: Mayor Its:
By:
Adam Bell
Its: City Manager
3.10
Forest School and Woodland Parks Concrete Installation – Odesa II, LLC
EXHIBIT A
Contractor’s Quote
3.10
Forest School and Woodland Parks Concrete Installation – Odesa II, LLC
3.10
Forest School and Woodland Parks Concrete Installation – Odesa II, LLC
3.10
Forest School and Woodland Parks Concrete Installation – Odesa II, LLC
$170,819
Corrected
Figure
3.10
Forest School and Woodland Parks Concrete Installation – Odesa II, LLC
3.10
COUNCIL STAFF REPORT
DATE: April 1, 2026
FROM: John Elholm, Recreation Director
Brad Fortin, Parks and Facilities Superintendent
TO: Mayor and City Council
City Manager Adam R. Bell
RE: Improvements in North Lions Park
Background
The sports field in North Lions Park is scheduled for replacement in 2026. A planning process took
place in 2025 that included sharing concept plans online for public comment and monthly review
by the Parks and Recreation Commission. The baseball field has been removed in preparation for a
rectangle field being built in its place. Bids were advertised on March 5 and 12, with a bid opening
on March 25, 2026. The project includes installation of a full-sized field and associated amenities
for soccer, lacrosse, ultimate and other sports that require a rectangle field. As bid documents were
finalized, the project was split into a base bid and alternate to provide options if bids came in high.
Bids came in significantly low, so both the base bid and alternate are recommended for approval.
Budget
The 2026 long-term capital plan (park improvement fund) includes $425,000 for this project; and a
Community Development Block Grant (CDBG) of $200,000 has also been approved for this project.
Due to the outside funding, actual city expenses will be less than what shows in the long-term plan.
Fifteen bids were received, with the lowest base bid plus alternate being submitted by Kurilla
Contracting in the amount $318,061.15. The engineers estimate is $447,276.25. Planning and site
amenity expenses will add just under $33,000, for a total project cost of $351,000. Since this is
$74,000 less than the $425,000 in the long-term plan, staff recommends accepting the base bid and
alternate from Kurilla Contracting. We have not worked with this contractor before, so we checked
references, subcontractors, and source location for soil mix. This review came back satisfactory.
Requested City Council Action
Staff recommends approval of the attached resolution, entering into an agreement with Kurilla
Contracting, in the amount of $318,061.15; for improvements in North Lions Park.
3.11
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2026-xx
RESOLUTION IN SUPPORT OF IMPROVEMENTS
IN NORTH LIONS PARK
WHEREAS, the City of Crystal owns and operates North Lions Park; and
WHEREAS, the 2026 capital improvement plan (park improvements) includes funding for
improvements in North Lions Park; and
WHERAS, A community development block grant (CDBG) has been approved for this project; and
WHEREAS, a public engagement process took place in 2025 that included sharing plans online for
public comment and regular review by the parks and recreation commission; and
WHEREAS, fifteen bids were received to construct a rectangle field and related amenities in North
Lions Park; and
WHEREAS; the lowest bid was received from Kurilla Contracting in the amount of $318,061.15.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal:
A.To enter into an agreement with Kurilla Contracting, in the amount of $318,061.15; to
construct a rectangle field and related amenities in North Lions Park.
B.To hereby authorize the mayor and city manager to sign agreements with Kurilla
Contracting for this project.
Adopted this 7th day of April 2026.
______________________________
Julie Deshler,
Mayor
ATTEST:
_______________________________
Chrissy Serres,
City Clerk
3.11
701 XENIA AVENUE S | SUITE 300 | MINNEAPOLIS, MN | 55416 | 763.541.4800 | WSBENG.COM March 25, 2026
Honorable Mayor and City Council
City of Crystal
4141 Douglas Drive N.
Crystal, MN 55422
Re: North Lions Park Improvements
City of Crystal
WSB Project No. 027629-000
Dear Mayor and Council Members:
Bids were received for the above-referenced project on Wednesday, March 26, 2026, and were
opened and read aloud. Fifteen bids were received. The bids were checked for mathematical
accuracy. Please find enclosed the bid summary indicating the low bid as submitted by Kurilla
Contracting, Buffalo, Minnesota in the amount of $287,990.15 for Base Bid and $30,071.00 for
Alternate Bid for a total Base Bid plus Alternates $318,061.15. The Engineer’s Estimate for Base
Bid plus Alternates was $447,276.25.
WSB requested project references, source location for the root zone mix and list of
subcontractors. Based on the information received and reviewed, WSB would expect this project
to be completed successfully per plans and specifications.
We recommend that the City Council consider these bids and award a contract for the base bid
and alternate bid in the amount of $318,061.15 to Kurilla Contracting based on the results of the
bids received.
Sincerely,
WSB
Robert Slipka, PLA
Sr. Professional Landscape Architect II
Attachments
ams
3.11
PROJECT:
OWNER:
City of Crystal
WSB PROJECT NO.:
027629-000
Bids Opened: Wednesday, March 25, 2026, at 1:00 pm
Contractor Bid Security (5%)BASE BID ALTERNATE BID
1 Kurilla Contracting X $287,990.15 $30,071.00
2 Clark Companies X $369,305.50 $79,400.00
3 Sunram Construction, Inc.X $392,163.00 $70,730.00
4 Winberg Companies LLC X $413,316.28 $74,475.21
5 ODESA II X $414,037.60 $43,999.20
6 New Look Contracting, Inc.X $415,052.50 $54,400.00
7 JL Theis, Inc.X $426,951.15 $84,666.80
8 Vada Contracting, LLC X $435,866.95 $64,700.00
9 Friedges Landscaping X $449,967.22 $58,060.00
10 K.A. Witt Construction Inc.X $470,368.75 $43,020.00
11 Frattalone Companies X $500,809.30 $55,393.75
12 Dreamland Contracting LLC X $529,768.55 $48,854.80
13 Peterson Companies X $534,712.00 $47,106.00
14 Urban Companies X $654,092.50 $74,800.00
15 Minnesota Sodding Company X $665,811.92 $67,785.00
Engineer's Opinion of Cost $399,076.25 $48,200.00
Denotes corrected figure
Bob Slipka, Sr. Professional Landscape Architect II
BID TABULATION SUMMARY
I hereby certify that this is a true and correct tabulation of the bids as received on March 25, 2026.
North Lions Park Improvements
C:\ACC\ACCDocs\WSB\027629-000\Project Files\05_Discipline\Preconstruction\Bidding\North Lions Park\027629-000 North Lions Bid Summary 032526.xlsx
3.11
12"12"14"16"12"12"14"14"10"12"12"20"20"12"14"14"6"ST RIM: 869.12S 15 RCP864.57INV:NE&SW 36 RCP863.97INV:INV:INV:INV:INV:RIM: 868.01NE 15 RCP865.36INV:W 12 RCP865.31INV:INV:INV:INV:INV:14"14"ST RIM: 869.81NE 36 RCP864.31INV:SW 36 RCP864.91INV:S 12 RCP864.81INV:INV:INV:INV:20"10"12"14"18"4"18"EESCALE IN FEET0H:20 403.11
COUNCIL STAFF REPORT
DATE: March 31, 2026
FROM: City Clerk Chrissy Serres
TO: Mayor and City Council
City Manager Adam R. Bell
RE: Consideration of a resolution establishing dates and offices for the 2026 municipal
elections
Background
State law requires the governing body of a municipality conducting even-year elections to adopt
a resolution by April 15 establishing the election dates and offices to be filled for the 2026
municipal elections.
An abbreviated 2026 elections calendar is as follows:
•May 19 – June 2: Candidate filing period.
•June 26 – Aug. 10: Absentee voting period for the primary election.
•July 21: Last day for voters to pre-register for the primary election.
•Aug. 11: Primary Election Day.
•Sept. 18 – Nov. 2: Absentee voting period for the general election.
•Oct. 13: Last day for voters to pre-register for the general election.
•Nov. 3: General Election Day.
Requested City Council Action
Approval of the resolution establishing dates and offices for the 2026 municipal election. Upon
approval, the proposed date for publication of the notice is April 30, 2026.
3.12
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2026 – ___
RESOLUTION ESTABLISHING DATES AND OFFICES
FOR THE 2026 MUNICIPAL ELECTIONS
WHEREAS, elections in the City of Crystal are conducted in accordance with the general laws of the
State of Minnesota, Chapter 4 of the City Charter, and Crystal City Code, Section 215; and
WHEREAS, primary elections are held on the second Tuesday in August in each even-numbered
year and general elections are held on the first Tuesday after the first Monday in November in
each even-numbered year; and
WHEREAS, affidavits of candidacy together with a filing fee or nominating petition shall be filed not
more than 84 days nor less than 70 days before the primary election; and
WHEREAS, in the event that three or more candidates file for the same municipal office, the
municipal primary election will be held on August 11, 2026; and
WHEREAS, the general election will be held on November 3, 2026; and
WHEREAS, the following municipal offices are up for election in 2026:
• Council Member Section 2
• Council Member Ward 1
• Council Member Ward 2
NOW, THEREFORE, BE IT RESOLVED, that filings for municipal candidates will open at 8 a.m. on
Tuesday, May 19, 2026, and close at 5 p.m. on Tuesday, June 2, 2026, at Crystal City Hall.
Dated this 7th day of April 2026.
______________________________
Julie Deshler,
Mayor
ATTEST:
_______________________________
Chrissy Serres,
City Clerk
3.12
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2026 – ___
A RESOLUTION GOVERNING WRITE-IN VOTE COUNTING
WHEREAS, Minnesota Statute § 204B.09, subd. 3 authorizes a city to adopt a resolution governing
the counting of write-in votes; and
WHEREAS, a city that adopts a resolution must do so before the first day of filing for office and
must notify the county auditor; and
WHEREAS, city election officials spend considerable time and resources to count and individually
record write-in votes cast, many of which are frivolous; and
WHEREAS, in order to save city time and resources, it is in the best interest of the City of Crystal, to
enforce restrictions on the counting of write-in votes consistent with the provisions of Minnesota
Statute § 204B.09, subd. 3.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Crystal, that any candidate
wishing to have their write-in votes individually recorded must file a written request with the Chief
Election Official no later than the nineteenth day before any municipal election.
BE IT FURTHER RESOLVED, that pursuant to Minnesota Statute § 204B.09, subd. 3, the city clerk is
hereby directed to notify the county auditor before the first day of filing for office of adoption of
this resolution.
BE IT FURTHER RESOLVED, that pursuant to Minnesota Statute § 204B.09, subd. 3, this resolution
shall remain in effect until a subsequent resolution on the same subject is adopted by the City of
Crystal.
Dated this 7th day of April 2026.
______________________________
Julie Deshler,
Mayor
ATTEST:
_______________________________
Chrissy Serres,
City Clerk
3.13
REZONE PROPERTIES TO THE TOWN CENTER CORE DISTRICT
PAGE 1 OF 4
____________________________________________________________________________
FROM: Dan Olson, City Planner
TO: Adam R. Bell, City Manager (for April 7 Meeting)
DATE: April 1, 2026
RE: Consider second reading of ordinance amending the Official Zoning Map to rezone
properties in the Town Center district and adoption of a resolution approving
summary language of the ordinance for publication
____________________________________________________________________________
A.BACKGROUND
The Planning Commission is recommending to the City Council to rezone several properties to
the Town Center Core district (TC). Notice of the March 9 public hearing was published in the
Sun Post on February 26 and posted to all neighborhoods on Nextdoor.
At the March 9 Planning Commission public hearing, the Commission unanimously
recommended approval of the property rezonings. One Crystal resident asked questions about
potential impacts of redevelopment on the residential neighborhoods surrounding the TC but
did not object to the proposed rezonings.
On March 17 the Council approved first reading of the ordinance.
On April 7 the Council is asked to (1) approve second reading and adoption of the ordinance,
and (2) approve a resolution for a summary publication of the ordinance.
Attachments:
A.Proposed Official Zoning Map
B.Enlargement of proposed zoning map showing TC rezonings
C.Ordinance
D.Resolution
COUNCIL STAFF REPORT
Rezone properties to Town Center Core
5.1
REZONE PROPERTIES TO THE TOWN CENTER CORE DISTRICT
PAGE 2 OF 4
B. PROPOSED PROPERTIES FOR REZONING
In 2025 City Council began working with a consultant to create a document called the Town
Center Vision Plan (TCVP) which is a vision for how the town center area could incrementally
change over the next 25 years.
Prior to undertaking the visioning process, City Council adopted a one-year moratorium on June
3, 2025 for type 2 development review applications in the Town Center Core (TC) and Town
Center – Planned Development (TC-PD) area. This meant that development review applications,
such as conditional use permits, subdivisions or rezonings, would not be considered within
those districts. Type 2 applications are those that require a public hearing and recommendation
from the Planning Commission followed by a City Council decision. The moratorium must end
by June 3, 2026.
On February 17, 2026 City Council approved the TCVP. As part of that plan, City Council directed
that several properties in the TC-PD overlay district be rezoned to TC.
Proposed properties for rezoning. The following properties would be rezoned to the TC district.
Attachment A shows the properties to be rezoned as crosshatched, with an excerpt of the
proposed TC area shown on attachment B. All these properties would also be removed from
the Town Center – Planned Development (TC-PD) overlay district.
Property Address Current Use Current Zoning
Classification
New Zoning
Classification
7000 – 56th Ave N. Approved unnamed Yellow
Tree apartment building
(formerly Wells Fargo bank)
TC-PD TC
6918 - 56th Ave. N. O’ Reilly’s Auto Parts C* TC
6924 – 56th Ave N. All Seasons (dry cleaning &
laundromat)
C* TC
6830- 56th Ave. N. Huntington Bank C* TC
6800 – 56th Ave. N. Walgreens C* TC
5629 West
Broadway
Arby’s C* TC
5702 West
Broadway
Storage Mart C* TC
5640 West
Broadway
Commercial building
(Miracle Ear, women’s
clinic, dental office)
C* TC
5600 West
Broadway
Crystal Town Center Mall C* TC
5630 Lakeland
Ave. N.
Cities Auto C* TC
6000 – 56th Ave. N. Approved Lotus Pointe
apartment building
TC-PD TC
5.1
REZONE PROPERTIES TO THE TOWN CENTER CORE DISTRICT
PAGE 3 OF 4
(formerly office building)
6001 & 6017 – 56th
Ave. N.
Two apartment buildings R-3* TC
5551 & 5561
Lakeland Ave. N.
Cell Tower R-1* TC
5521 & 5531
Lakeland Ave. N.
Vacant land and street cul-
de-sac
C* TC
5501 Lakeland
Ave. N.
Office building C* TC
5465 Lakeland
Ave. N.
U-Haul C* TC
5445 Lakeland
Ave. N.
Max it Pawn shop C* TC
5417 Lakeland
Ave. N.
CarHop Auto Sales C* TC
5353 Lakeland
Ave. N.
Rise, Inc. C* TC
6801 – 56th Ave. N. Crystal Shopping Center
(Mall)
C* TC
5547 West
Broadway
Taco Bell C* TC
5537 West
Broadway
Target C* TC
5420 West
Broadway
Perkins restaurant C* TC
5400 West
Broadway
McDonalds restaurant C* TC
5358 West
Broadway
Office building C* TC
5430 Douglas Dr.
N.
Office/warehouse building PD-I* TC
5400 Douglas Dr.
N.
Minnesota Grinding I* TC
5246 Hanson Ct. N. Schmit Towing, countertop
shop
I* TC
5316 Hanson Ct. N. Vacant land I* TC
5354 Douglas Dr.
N.
WMFRD fire station C* TC
5324 Hanson Ct. N. Three apartment buildings R-3* TC
* These properties are within the Town Center – Planned Development (TC-PD) overlay district.
With this rezoning, these properties would be removed from the TC-PD overlay district.
5.1
REZONE PROPERTIES TO THE TOWN CENTER CORE DISTRICT
PAGE 4 OF 4
Include in TC-PD: The property at 6325 – 52nd Ave. N., below, which contains a single-family rental
home, is currently zoned Low Density Residential (R-1) but is proposed to be included in the Town
Center – Planned Development (TC-PD) overlay district so that there may be an opportunity to
redevelop the property along with the vacant property at 5193 Douglas Dr. N. Both properties are
owned by the same individual and 5193 Douglas is already included within the TC -PD overlay district.
The property on 52nd Ave. N. is guided Low Density Residential in the Comprehensive Plan, and any
redevelopment will necessitate a change to the Comprehensive Plan and a rezoning to TC-PD. In the
meantime, the home’s base zoning would remain R-1.
End of Moratorium: The one-year moratorium must end by June 3, 2026. With these rezonings to TC,
the moratorium will end on May 16, 2026, the effective date of the ordinance in attachment C.
C. REQUESTED ACTION
At the March 9th Planning Commission public hearing, the Commission recommended by a vote
of 7 to 0 (one member was absent) to approve the zoning map amendments.
City Council actions requested:
1. Second reading and adoption of the ordinance
2. Adoption of the resolution approving summary publication
The following is the proposed schedule for adopting a new zoning map:
April 16 Summary of ordinance published
May 16 Effective date of ordinance
6325 – 52nd
Ave. N.
5.1
Attachment A 5.1
Solid Blue = Town Center Core district with new
properties added
Attachment B 5.1
1080852
Matter ID: 30
Client ID: CR205
CITY OF CRYSTAL
ORDINANCE #2026-____
AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP
IN CHAPTER V OF THE CRYSTAL CITY CODE
WHEREAS, on June 3, 2025, the City Council of the City of Crystal (the “Council”) adopted
Ordinance No. 2025-10 establishing a moratorium on development (the “Moratorium”) in the
Town Center District (TC) and Town Center-Planned Unit Development District(TC-PD); and
WHEREAS, on September 15, 2025, the Council adopted Ordinance No. 2025-12
amending Ordinance No 2025-10 excluding certain areas from the Moratorium; and
WHEREAS, the City has now completed the study relating to appropriate land uses,
development standards, and approval processes that should be allowed in the T Town Center
District (TC) and Town Center-Planned Unit Development District (TC-PD); NOW, THEREFORE,
The City of Crystal ordains:
ARTICLE I. Rezoning. The properties included in the Moratorium shall be rezoned as indicated
in Exhibit A and the zoning administrator is authorized and directed to amend Zoning Map to
reflect this change and to take any such other actions as may be required to effectuate th is
rezoning. The amended Zoning Map shall constitute the City’s official Zoning Map.
ARTICLE II. Other changes. The land uses, development standards, and approval process in the
current city code shall apply to the rezoned properties, and this ordinance shall not make any
changes to the text of the Crystal city code.
ARTICLE III. Terminating Moratorium. As of the effective date of this Ordinance, Ord. No. 2025-
10, as amended by Ord. No. 2025-12, is hereby repealed in its entirety.
ARTICLE IV. Effective Date. This ordinance is effective upon adoption and 30 days after
publication.
First Reading: March 17, 2026
Second Reading: __________
Council Adoption:_________
Publication:
Effective Date:
Attachment C 5.1
1080852
Matter ID: 30
Client ID: CR205
BY THE CITY COUNCIL
Julie Deshler, Mayor
ATTEST:
____________________________
Christina Serres, City Clerk
5.1
Property
Address
Property
Identification
Number
Current
Zoning
Classification
New Zoning
Classification
7000 – 56th Ave
N.
0511821420032 TC-PD TC
7000 – 56th Ave
N
0511821420067 TC-PD TC
6918 - 56th Ave.
N. 0511821420074
C* TC
6918 - 56th Ave.
N 0511821420075
C* TC
6924 – 56th Ave
N.
0511821420073 C* TC
6830- 56th Ave.
N.
0511821420069 C* TC
6800 – 56th Ave.
N. 0511821420076
C* TC
5629 West
Broadway
0511821420064 C* TC
5702 West
Broadway 0511821420082
C* TC
5640 West
Broadway 0511821420077
C* TC
5600 West
Broadway 0511821420078
C* TC
5600 West
Broadway 0511821410119
C* TC
5600 West
Broadway 0511821410120
C* TC
5630 Lakeland
Ave. N. 0411821320103
C* TC
6000 – 56th Ave.
N. 0411821320112
TC-PD TC
Exhibit A 5.1
6017 – 56th Ave.
N.
0411821330016 R-3* TC
6001 – 56th Ave.
N.
0411821330015
R-3* TC
5561 Lakeland
Ave. N.
0411821330006 R-1* TC
5551 Lakeland
Ave. N.
0411821330007 R-1* TC
5531 Lakeland
Ave. N.
0411821330009 C* TC
5521 Lakeland
Ave. N
0411821330010
C* TC
5501 Lakeland
Ave. N.
0411821330001 C* TC
5465 Lakeland
Ave. N.
0411821330005 C* TC
5445 Lakeland
Ave. N.
0411821330004 C* TC
5417 Lakeland
Ave. N.
0411821330042
C* TC
5353 Lakeland
Ave. N.
0911821220056
C* TC
6801 – 56th Ave.
N.
0511821430003
C* TC
5547 West
Broadway
0511821440052
C* TC
5537 West
Broadway
0511821440051
C* TC
5420 West
Broadway
0511821440007
C* TC
5400 West
Broadway
0511821440026 C* TC
5358 West
Broadway
0811821110136
C* TC
5.1
5430 Douglas Dr.
N.
0411821330039
PD-I* TC
5400 Douglas Dr.
N.
0411821330032 I* TC
5246 Hanson Ct.
N.
0411821330044
I* TC
5316 Hanson Ct.
N.
0911821220044
I* TC
5354 Douglas Dr.
N.
0911821220036 C* TC
5324 Hanson Ct.
N.
0911821220059
R-3* TC
6325 – 52nd Ave.
N.
0811821110065
R-1 R-1, within the
TC-PD overlay
district
* These properties are within the Town Center – Planned Development (TC-PD)
overlay district. With this rezoning, these properties would be removed from the
TC-PD overlay district.
5.1
1
CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2026-__
RESOLUTION APPROVING SUMMARY LANGUAGE
FOR PUBLICATION OF ORDINANCE NO. 2026-____
WHEREAS, the Crystal City Council adopted Ordinance No. 2026-____ “An Ordinance
Amending the Official Zoning Map in Chapter V of the Crystal City Code” (the “Ordinance”) at its
meeting held on April 7, 2026; and
WHEREAS, Section 3.12 of the Crystal City Charter and Section 110.13 of the Crystal City
Code indicate that ordinances approved by the City Council will be published in summary form
and that the City Council is to approve the form of the summary.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Crystal that the
following summary language is hereby approved for publication of the Ordinance:
CITY OF CRYSTAL
ORDINANCE #2026-____
AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP
IN CHAPTER V OF THE CRYSTAL CITY CODE
SUMMARY OF ORDINANCE No. 2026-___
Ordinance No. 2026-___ has been approved by the city council on April 7, 2026. A printed copy of
the full text of the ordinance is available for public inspection in the office of the city clerk.
The City Council adopted the above referenced ordinance amending Chapter V of the
Crystal City Code to amend the Official Zoning Map. The amendment is to rezone several
properties to the Town Center districts. The ordinance also terminates a moratorium on
development in the Town Center (TC) and Town Center – Planned Development (TC-PD)
districts with an effective date of May 16, 2026. A copy of the full text of the ordinance is
available on the City’s website and by contacting the City Clerk.
BE IT FINALLY RESOLVED, that the City Clerk is hereby authorized and directed to do each of
the following:
1.Publish the approved summary language once in the City’s official newspaper;
Attachment D 5.1
2
2.Place a copy of this Resolution, the full text of the Ordinance, and the affidavit of publication of
the summary language in the City’s ordinance book;
3.Make the full text of the Ordinance available for public inspection in the office of the City Clerk
during the City’s regular business hours;
4.Post the updated Official Zoning Map on the City’s website.
Adopted this 7th day of April, 2026.
______________________________
Julie Deshler
Mayor
ATTEST:
_______________________________
Chrissy Serres
City Clerk
5.1
COUNCIL STAFF REPORT
DATE: April 1, 2026
FROM: City Clerk Chrissy Serres
TO: Mayor and City Council
CC: City Manager Adam R. Bell
Police Chief Brian Hubbard
RE: Consideration of civil penalties for violation of liquor license regulations by
PurpleRose Lounge Corporation d/b/a PurpleRose Lounge located at 5526 West
Broadway
Background
In February 2026, staff received notification from the state regarding a liquor license violation
involving PurpleRose Lounge. The violation includes purchasing alcohol from another licensed
retailer for resale. State law requires retailers to purchase alcoholic beverages only from
licensed manufacturers, brewers or wholesalers. This action constitutes violations of both state
law and Crystal City Code 1200.35.
Staff also recently identified two prior liquor law violations issued by the State of Minnesota that
are part of the licensee’s compliance history. These violations were not previously addressed
through the city’s administrative penalty process and are no longer eligible for local
enforcement action. While the prior state violations are outside the timeframe for enforcement,
they provide context regarding the licensee’s overall compliance history. Therefore, this is
considered a second liquor license violation for this licensee.
Staff report attachments:
A.City of Crystal Notice of Violation of Liquor Regulations
Requested City Council Action
Consistent with Crystal City Code and Resolution No. 2025-40, staff recommends PurpleRose
Lounge receive a five-day license suspension and civil fine of $1,500, with city staff determining
the date of the license suspension and payment date for the fine.
5.2
4141 Douglas Drive North • Crystal, Minnesota 55422-1696
Tel: (763) 531-1000 • Fax: (763) 531-1188 • www.crystalmn.gov
March 27, 2026
PurpleRose Lounge Corporation d/b/a
PurpleRose Lounge
Attn: Winchell H. Sherman
5526 West Broadway
Crystal, MN 55428
VIA EMAIL AND REGULAR MAIL
CITY OF CRYSTAL NOTICE
VIOLATION OF LIQUOR REGULATIONS
The Crystal City Council will meet on Tuesday, April 7, 2026, at 7 p.m. in the council chambers at
city hall, 4141 Douglas Dr. N., Crystal, Minnesota, to consider whether action should be taken
against your liquor license as a result of an alleged violation of state laws and city ordinances.
The alleged violation consists of purchasing alcohol from a retailer for the purpose of resale,
which occurred on or about Jan. 8, 2026, at PurpleRose Lounge located at 5526 West Broadway,
Crystal, Minnesota (enclosed).
You are notified that you have the right to appear at the city council meeting on April 7, 2026.
At the meeting, you may admit or deny the violation. If you admit the violation, you waive your
right to a hearing but will be allowed to explain any mitigating circumstances. The council may
impose administrative penalties in accordance with Crystal City Code section 1200.35 and
Resolution No. 2025-40 (also enclosed) that were in effect at the time of the incident.
If you deny the violation, you may request a hearing. The city council may, at its option, hold the
hearing immediately or refer the matter to a hearing conducted by another person or body at a
later date.
If you are unable to attend the city council meeting on April 7, 2026, you may agree to any
administrative penalties without a hearing by providing the city manager with a letter any time
before the meeting that includes a written waiver and acceptance of any administrative
penalties. You may also explain any mitigating circumstances in the letter. Any such agreement is
subject to approval by the city council.
If you do not appear at the city council meeting on April 7, 2026, nor submit a letter to the city
manager prior to the meeting, you will be deemed to have admitted the violation and to have
waived your right to a hearing, and the city council may impose administrative penalties in
accordance with Crystal City Code section 1200.35 and Resolution No. 2025-40.
__________________________
Chrissy Serres, City Clerk
Attachment A 5.2
Attachment A 5.2
Alcohol and Gambling Enforcement DivisionInitial Report AGE2025-538Report Date: 10/01/2025
Primary InformationDescription:Criminal Alcohol- Serving minors, retail for resale, refilling bottles, Purple Rose Lounge.Reporting LEO:Biagini, Chris (773 / AGED Investigations / Alcohol and Gambling Enforcement Division)Report Status:ApprovedReport Status Date:01/26/2026Approved By:Roddy, Bridget (774 / Alcohol and Gambling Enforcement Division)
SynopsisRetail for resale located at the business. This is the second time in two years retail for resale has been located at the business. Casesent for review of civil regulatory penalties.
Address #1 - Business #1 - 5526 W BROADWAY AVEPrimary InformationAddress:5526 W BROADWAY AVE Purple Rose Lounge, CRYSTAL, Minnesota 55428
Telephones / E-AddressesRelationship Number/E-AddressBILLING ANDINSTALLATIONADDRESS
(763) 312-8250 (BUSINESS)
Subject #1 - EMPLOYEE #1 - Clark, SydneyPrimary InformationSubject Name:Clark, SydneyRecord Type:PersonBio:Black, FemaleJuvenile:NO
AddressesRelationship AddressBUSINESS LOCATION 5526 W BROADWAY AVE Purple Rose Lounge, CRYSTAL, Minnesota 55428
Subject #2 - OTH AGY - NON LAW ENFORCE #1 - Serres, ChrissyPrimary InformationSubject Name:Serres, ChrissyRecord Type:PersonBio:Unknown, FemaleJuvenile:NO
AddressesRelationship AddressBUSINESS LOCATION 4141 DOUGLAS DR N Crystal City Hall, CRYSTAL, Minnesota 55422 United States
Telephones / E-AddressesRelationship Number/E-Address
01/26/2026 14:00:51 Page 1 of 4
Attachment A 5.2
Alcohol and Gambling Enforcement DivisionInitial Report AGE2025-538Report Date: 10/01/2025
Subject #2 - OTH AGY - NON LAW ENFORCE #1 - Serres, Chrissy - ContinuedTelephones / E-Addresses - ContinuedRelationshipNumber/E-AddressBUSINESS(763) 531-1145 (BUSINESS)Email address Chrissy.Serres@crystalmn.gov (Email address)
Subject #3 - OWNER/PROPRIETOR #1 - SHERMAN, WINCHELL HECTONPrimary InformationSubject Name:SHERMAN, WINCHELL HECTONRecord Type:PersonBio:44 yr. old, Black, MaleBirth Date:Juvenile:NO
AddressesRelationship AddressHOME ADDRESS 2013 INDEPENDENCE AVE N, Golden Valley, Minnesota 55427 United States
Telephones / E-AddressesRelationship Number/E-AddressBUSINESS(612) 859-5354 (BUSINESS)
IdentificationsID Type Country As Of Date Fictitious CommentState ID ------NO ---
Narrative begins on the following page.
01/26/2026 14:00:51 Page 2 of 4
DL and ID Data
Attachment A 5.2
On 10/01/25 I was assigned a case of retail for resale and serving minors at the Purple Rose Lounge (PRL)
(5526 W. Broadway Crystal, MN 55428). The reporting party called her complaint in to the AGE office, and
they wished to stay completely anonymous and did not provide any of their information.
The reporting party reported the following issues:
The owner buys his alcoholic beverages from Costco.
Old bottles are kept to refill with cheaper products.
Cash payments are not reported as income.
Serves minors.
Has been fined for issues in the past.
IS5 (AGE internal licensing database) showed the following details for PRL:
The business had a city issued on-sale license.
Ident number of 76669.
The business held an approved state buyer’s card, and an approved 2am permit.
An owner/officer was showing as Winchell H SHERMAN.
It should be noted I had found that PRL was fined in 2024 by LCIS in which the fine was paid.
On 10/02/25 at approximately 1400 hours, I attempted to stop out at PRL, but I found it was closed and did
not open until 1600 hours.
On 12/09/25 I was assigned another complaint that was received regarding PRL. Chrissy Serres the City
Clerk with the City of Crystal was looking for guidance on a complaint they received regarding PRL. I
observed the following details on the complaint sent to the City of Crystal:
The complaint was made by a who left no contact information.
advised PRL was purchasing their alcoholic beverages via a liquor store.
was requesting that bar codes be scanned on alcoholic beverages to determine where
they originated from (bar codes on alcoholic beverage bottles do not indicate where an alcoholic
beverage originated from, and there was no way to determine the origin of alcoholic beverages
without a receipt, invoice, or possibly packaging in relation to retail or wholesale).
It should be noted it appeared PRL had varying hours, and some reviews observed online indicated the
business was closed when it was showing it should be open.
On 12/11/25 I spoke with Serres over the phone. Serres advised they had received multiple complaints on
PRL, and PRL had also failed a minor consumption compliance check that the city took civil action on. I
advised Serres of actions I had taken on my end, and that I still planned on stopping out at the business
again. Serres also advised one of the complainants did leave a name and number via a voicemail of
. was also complaining about retail for resale.
On 01/08/26 at approximately 1435 hours, SA Chlebeck and I arrived at PRL. The open sign was on at PRL
and there appeared to be staff inside of PRL. SA Chlebeck and I entered PRL and met with an employee later
identified as Sydney CLARK. CLARK was issued my business card. CLARK advised SHERMAN was not
on site, but she could try and get a hold of him on the phone. While CLARK was attempting to get
SHERMAN on the phone, I advised CLARK that agents would be doing an inspection of the business. The
bar was not a large area, and CLARK confirmed the business did not have kegs. CLARK advised she was
not allowed to serve the alcoholic beverages, and SHERMAN had a different subject who did the
bartending. I observed numerous 1.75L bottles of alcoholic beverages behind the bar, which could be an
indication of retail for resale. Behind the rail of the bar, I observed numerous plastic 1.75L alcoholic
beverages, including multiple Phillips Vodka 1.75L bottles. CLARK advised she left a message for
SHERMAN to call, and shortly afterwards SHERMAN called my work cell phone (612-859-5354).
Licensing
Licensin
Licensin
Licensing
Licensing Licensing
Attachment A 5.2
SHERMAN advised he could possibly be in the business in an hour. I advised SHERMAN I would speak
with him over the phone. I advised SHERMAN of why agents were at the business. At first SHERMAN
denied any retail for resale and advised some of the 1.75L alcoholic beverage bottles were from the last time
AGE dealt with SHERMAN and retail for resale issues. I advised SHERMAN there were a large number of
1.75L bottles on site, and that I would need his invoices showing the wholesale deliveries, and I advised
SHERMAN it was best to tell me the truth about all the 1.75L bottles on site because I would determine
eventually if the 1.75L bottles came from a licensed wholesaler. SHERMAN then admitted he had recently
purchased alcoholic beverages for the business from another licensed retail establishment because he ran
out of items he needed. SHERMAN indicated at the least the Bacardi alcoholic beverages behind the bar,
and the vodka along the rail of the bar were all purchased from a liquor store for the business and were not
received from a licensed wholesaler.
SHERMAN advised the beer on site in coolers was purchased via a licensed wholesaler. SHERMAN
indicated he did have invoices for other alcoholic beverages on site, but he could not direct me to them
while I was on site. I advised SHERMAN I would need his wholesaler invoices for the rest of the alcoholic
beverages on site. I advised SHERMAN, he could text me the invoices or email them to me.
I advised SHERMAN we would continue to get notified about the retail for resale because the complaints
were coming from the public. I advised SHERMAN he needed to obtain his alcoholic beverages via a
licensed wholesaler. SHERMAN advised it would not happen again. I advised SHERMAN it would be best
if he removed from the business all the alcoholic beverages he received from retail. SHERMAN indicated he
would remove the alcoholic beverages when he got to the business.
After speaking with SHERMAN agents finished the inspection, and I took numerous photos of items
located on site.
It should be noted under case AGE2024-124 SHERMAN and was also referred for civil regulatory penalties
regarding retail for resale.
On 01/12/26 at approximately 2123 hours, SHERMAN provided invoices from BreakThru beverage via text
that I reviewed. None of the invoices contained Bacardi or Phillips alcoholic beverage products.
It should be noted during my text conversation with SHERMAN he was also advised about the portion of
the complaint that dealt with minor consumption.
SHERMAN admitted to retail for resale regarding some alcoholic beverages at the business.
This case will be forwarded for review of civil regulatory penalties regarding retail for resale violation (MN
State Statute 340A.415, and MN State Rule 7515.0520).
BWC footage was available with this incident.
No further action was taken by this Special Agent.
Status: Information/Review for civil regulatory penalties.
Attachment A 5.2
Total Number of Redactions in Document: 6
Redaction Reasons by Page
Page Reason Description Occurrences
2 DL and ID Data
Minn. Stat. § 13.6905, subd. 10. Certain
data provided to obtain a driver's license,
identification card, or instruction permit
shall not be disclosed. Minn. Stat. § 171.12,
subd. 7. 18 USC § 2721.
1
3 Licensing Agency
Minn. Stat. § 13.41, subd. 2. Certain data
collected, created or maintained by a
licensing agency are private data.
5
Redaction Date: 3/6/2026 12:34:35 PM
Redaction Log
Attachment A 5.2
CR225-464-562973.v5
2019 Crystal City Code 1200.31(a)
(a) The licensed premises of the business are destroyed by fire or other catastrophe;
(b) The licensee ceases business because of death or serious illness; or
(c) The business ceases to be lawful for a reason other than a license revocation.
The city council shall, in its sole discretion, determine whether such a refund is appropriate, and if so, in
what amount.
1200.33. Consumption and display permits.
Subd. 1. Permit required. No business establishment or club which does not hold an on-sale
intoxicating liquor license may directly or indirectly allow the consumption and display of alcoholic
beverages or knowingly serve any liquid for the purpose of mixing with intoxicating liquor without first
having obtained a permit from the commissioner. Rental of a public facility does not make the city or the
facility a “business establishment” for purposes of this section. The city council must consent to all permits
issued by the commissioner pursuant to Minnesota Statutes, section 340A.414, subdivision 5.
Subd. 2. Additional fees. There is imposed upon holders of permits issued pursuant to Minnesota
Statutes, section 340A.414 an additional fee of $300 per annum. The fee must be paid to the city finance
director on or before March 31 of each year and a receipt given thereof, provided, however, upon
commencement of a new permit period under the state permit, if a portion of the year has elapsed when
payment is made, a pro rata fee may be paid but no such pro rata fee may be less than $150. In computing
the fee, an unexpired fraction of a month is counted as one month. The receipt must be posted in some
conspicuous place upon the premises alongside the state permit.
Subd. 3. Inspections. A business establishment or club issued a permit shall be open for inspection
pursuant to Minnesota Statutes, section 340A.414, subdivision 7.
Subd. 4. Hours of consumption and display. The hours of consumption and display of intoxicating
liquor are those specified in section and Minnesota Statutes, section 340A.414.
1200.35. Conditions of license; penalties.
Subd. 1. Conditions of license. The failure of a licensee to meet any one of the conditions of the
license specified below shall result in the application of penalties as provided in this subsection.
(a) Licensee training: All licensees holding any on-sale or off-sale license issued under this
chapter, operating managers, and employees or agents employed by the licensee that sell
or serve alcohol, shall complete, to the city’s satisfaction, a city-approved or provided
liquor licensee training program. Both the city’s approval of the training and the required
training shall be completed:
(1) Prior to licensure or renewal for licensees and managers,
(2) Prior to serving or selling for any employee or agent, and
(3) Every year thereafter.
Attachment A 5.2
CR225-464-562973.v5
2019 Crystal City Code 1200.35, Subd. 1(b)
(b) All licensees shall maintain documentation evidencing that the training required in
paragraph (a) above has been met and must produce such documentation as part of each
application for licensure or renewal and upon reasonable request made by a peace officer,
or other designated employee of the city. An applicant’s or licensee’s failure to comply
with this provision in its entirety is sufficient grounds for denial or nonrenewal of a
requested license.
(c) Every licensee is responsible for the conduct of the place of business and the conditions of
sobriety and order in it. The act of any employee on the licensed premises is deemed the
act of the licensee as well, and the licensee shall be liable for all penalties provided by this
Crystal city code and the law equally with the employee.
(d) Every licensee shall allow any peace officer, health officer, city employee, or any other
person designated by the city council to conduct compliance checks and to otherwise enter,
inspect, and search the premises of the licensee during business hours and after business
hours during the time when customers remain on the premises without a warrant.
(e) No on-sale establishment shall display or sell liquor to the public during hours when the
sale of liquor is prohibited.
(f) Compliance with financial responsibility requirements of state law and of this Crystal city
code is a continuing condition of any license.
(g) Compliance with all laws, rules, and regulations related to the retail sale of intoxicating
liquors, including the provisions of Minnesota Statutes, chapters 297F and 340A,
Minnesota Rules, chapter 7515, and the Crystal city code.
Subd. 2. Penalties.
(a) Misdemeanors. A person who violates this section is guilty of a misdemeanor unless
otherwise provided by law.
(b) Presumptive revocation. The city council may revoke a license, following, notice and an
opportunity to be heard, on the first violation for the following types of offenses:
(1) Commission of a felony by licensee or an employee of licensee related to the
licensed activity authorized by this chapter and Minnesota Statutes, chapter 340A.
(2) The sale of alcoholic beverages on the licensed premises while a license is under
suspension or revocation.
(c) Administrative civil penalties. If a licensee or an employee of a licensee is found to have
violated any of the provisions of state law or this section, the city council may impose an
administrative penalty, including a civil fine and/or suspension of the license, in such
amounts and for such periods as set out Crystal city code, appendix IV.
Attachment A 5.2
CR225-464-562973.v5
2019 Crystal City Code 1200.35, Subd. 3
Subd. 3. Presumptions regarding administrative penalties. The administrative penalties described
in subdivision 2 of this subsection and set out in Crystal city code, appendix IV are the presumed sanctions
for the violations indicated. In the event of any license suspension imposed under this section, the city
council may select which days a suspension will be served. These penalties are presumed to be appropriate
for every case; however, the city council may deviate in an individual case where the city council finds that
specific mitigating or aggravating circumstances exist, making it more appropriate to deviate. When
deviating from these standards, the city council will provide written findings that identify the facts that
support the penalty selected. In addition to any presumptive penalty, the city council may also impose
reasonable license conditions in response to the facts surrounding a specific case.
Subd. 4. Computation of time for violations under the presumptive penalties in Crystal city code
appendix IV. A second violation within thirty-six (36) months must be treated as a second appearance, a
third within forty-eight (48) months treated as a third appearance, and a fourth within forty-eight (48)
months treated as a fourth appearance for the purpose of determining the presumptive penalty. Measurement
of the time period must be as follows: The beginning date shall be the earliest violation’s date of appearance
before the city council, and the ending date shall be the date of the occurrence giving rise to the new
violation. In case of multiple new violations, the ending date to be used shall be the date of the new violation
first in time.
1200.37. Hours of sale.
Subd. 1. Statutory. The hours of operation and days of sale shall be those set by Minnesota
Statutes, section 340A.504, including sales after 1:00 a.m. pursuant to a permit issued by the commissioner,
except that the city council may, by resolution or ordinance, provide for more restrictive hours than state
law allows.
Subd. 2. Consumption prohibited. No person shall consume, nor shall any on-sale licensee permit
any consumption of, intoxicating liquor or 3.2 percent malt liquor upon an on-sale licensed premises more
than 30 minutes after the time within which intoxicating liquors may be sold.
Subd. 3. Display. No on-sale licensee shall permit any glass, bottle, or other container containing
intoxicating liquor or 3.2 percent malt liquor to remain upon any table, bar, stool, or other place where
customers are served, more than 30 minutes after the time within which intoxicating liquors may be sold.
Subd. 4. Vacate premises. No person, other than the licensee and any employee, shall remain on
the on-sale licensed premises more than 30 minutes after the time within which intoxicating liquors may be
sold.
Subd. 5. Penalty. Any violation of this subsection may be grounds for revocation or suspension
of the license subject to the terms of this section.
1200.39. Licenses in prohibited locations. No license shall be issued under this section in any place which
is prohibited under Minnesota Statutes, section 340A.412, subdivision 3.
Attachment A 5.2
Attachment A 5.2
AGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
• REGULAR MEETING •
TUESDAY, APRIL 7, 2026
IMMEDIATELY FOLLOWING THE 7:00 P.M. CITY COUNCIL MEETING
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order *
2. Roll call *
3. Consider approval of minutes from the March 17, 2026 regular meeting
4. Consider a resolution approving and authorizing execution of a Tax Increment Agreement for
Tax Increment Financing District No. 6 (Wells Fargo)
5. Preview of upcoming EDA items *
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
4141 Douglas Dr. N.
March 17, 2026
1. Call to Order
President Cummings called the meeting of the Economic Development Authority of the City of
Crystal (EDA) to order at 7:51 p.m.
2. Roll Call
Upon call of the roll, the following Commissioners were present: David Cummings, Julie
Deshler, Forest Eidbo, Traci Kamish, Therese Kiser and Taji Onesirosan.
The following staff were present: Executive Director Adam Bell, Deputy Executive Director John
Sutter, and City Attorney Rachel Tierney.
3. Approval of Minutes
EDA action: Moved by Commissioner Deshler and seconded by Commissioner Kamish to
approve the minutes from the February 17, 2025 regular meeting. Motion carried.
4. Consider approval of the 2026 Work Plan
EDA action: Moved by Commissioner Deshler and seconded by Commissioner Kamish to
approve the 2026 Work Plan. Motion carried.
5. Consider approval of consent and waiver agreements related to deferred loans securing façade
improvement grants at 6304 42nd Ave. N. and 3600 Douglas Dr. N.
EDA action: Moved by Commissioner Eidbo and seconded by Commissioner Kiser to approve
the consent and waiver agreements related to deferred loans securing façade improvement
grants at 6304 42nd Ave. N. and 3600 Douglas Dr. N. Motion carried.
6. Preview of upcoming EDA items
On April 7, the EDA will consider the TIF agreement to implement TIF District No. 6 (Wells
Fargo).
Page 2 of 3
7. Property Status Update
Staff provided information and answered questions regarding the upcoming demolition of the
office building at 6000 56th Ave. N., the vacant residential lot at 3949 Douglas Dr. N., the
foreclosure of the former Walgreens at 6800 56th Ave. N., the remodeling of the Famous
Footwear store, the reopening of Crystal Cafe in Lamplighter Square at 2700 Douglas Dr. N., the
renovated house at 4553 Welcome Ave. N., and the vacant Big O Tires at 5500 West Broadway.
8 Other Business
Staff answered a question about the status of the townhomes at 3401-3415 Douglas Dr. N.
9. Adjournment
Moved by Commissioner Kiser and seconded by Commissioner Deshler to adjourn the meeting.
Motion carried.
The meeting adjourned at 8:31 p.m.
Page 3 of 3
These minutes of the March 17, 2026 meeting of the Crystal Economic Development Authority were
approved by the Authority on April 7, 2026.
______________________________
David Cummings, President
ATTEST:
______________________________
Therese Kiser, Secretary
Page 1 of 2
EDA STAFF REPORT
DATE: April 1, 2026
FROM: John Sutter, Community Development Director
TO: EDA Board of Commissioners
Executive Director Adam R. Bell
RE: Consider a resolution approving and authorizing execution of a Tax Increment
Agreement for Tax Increment Financing District #6 (Wells Fargo)
A. BACKGROUND
Yellow Tree Development is proposing to purchase and demolish the vacant Wells Fargo
building at 7000 56th Ave. N. In its place, they would construct a 5 story, 178 unit market
rate apartment building. Yellow Tree has applied for development assistance in the form of
a Tax Increment Redevelopment District to make the project feasible. The City Council, by
resolution dated March 17, 2026, made the required findings pursuant to Minn. Stat.
469.175, subd. 3 regarding the project.
The following fiscal changes on the property are anticipated as a result of the development:
• Estimated market value of the property would increase by $38,924,000 (from
$1,126,000 to $40,050,000).
• Tax capacity of the property would increase by $478,855 (from $21,770 to $500,625).
• Annual local property taxes paid by the property would increase by $666,499 (from
$30,301 to $696,800).
B. TIF AGREEMENT
• The assistance to be provided to Yellow Tree is ten years of net tax increment with a
present value not to exceed $3,673,000. The assistance would be in the form of a pay-
as-you-go TIF Note.
Page 2 of 2
• Yellow Tree must commence construction by Dec. 31, 2026 and complete construction
by Dec. 31, 2028. The developer’s intent is to commence construction in July 2026 and
complete the building by the end of 2027. However, there is currently a lot of
uncertainty in capital markets and supply chains, so Yellow Tree requested that the
agreement provide a more accommodative timeline to account for these uncertainties.
• The estimated total development cost is $44,080,000. Prior to issuance of the TIF note,
Yellow Tree will provide documentation of the actual development cost. If the actual
cost is less than the estimated $44,080,000, then the currently estimated $3,673,000 TIF
Note will be reduced by the amount of the difference between the actual and estimated
cost. If the actual cost is greater than the estimated $44,080,000, then the amount of
the TIF Note will not change.
• A separate EDA resolution will be required when the time comes to issue the TIF note.
The specific payment amounts and schedule will be established at that time. The TIF
note payments to Yellow Tree will be semiannual, and will be paid after the city receives
each respective semiannual property tax payment.
C. ANTICIPATED UPCOMING ACTIONS
May 2026 Yellow Tree closes on acquisition of the property
June 2026 Demolition and site clearance
July 2026 Construction start (agreement deadline is Dec. 2026)
Dec. 2027 Construction complete (agreement deadline is Dec. 2028)
D. EDA ACTION REQUESTED
Adopt the attached resolution approving a and authorizing execution of the attached Tax
Increment Agreement for Tax Increment Financing District #6 (Wells Fargo).
Page 1 of 2
CR225\487\1085350.v2
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF CRYSTAL
MINNESOTA
RESOLUTION NO. 2026 - ___
RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A TAX INCREMENT
AGREEMENT FOR TAX INCREMENT FINANCING DISTRICT NO. 6 (WELLS FARGO)
BE IT RESOLVED by the Board of Commissioners of the Economic Development
Authority of the City of Crystal (the “Authority”) as follows:
WHEREAS, the Economic Development Authority of the City of Crystal (the “Authority”)
and the City of Crystal (“City”) has approved the creation of Tax Increment Financing District
No. 6 (Wells Fargo) (the “TIF District”) within the redevelopment project known as
Redevelopment Project Area No. 1; and
WHEREAS, the Authority has reviewed a Contract for Private Redevelopment (the
“Contract”) between the Authority and Apartments Crystal Holdings, LLC (“Redeveloper”),
which provides the Redeveloper reimbursement of up to $3,673,000 in qualifying costs related
to the acquisitions and redevelopment of that property located at 7000 56th Avenue North into
a market rate housing project with 178 rental units, 186 stalls of underground parking, and 76
surface parking stalls, including other additional area improvements; and
WHEREAS, the Authority has reviewed the Contract and finds that the execution thereof
by the Authority and performance of the Authority’s obligations thereunder are in the best
interest of the City and its residents.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic
Development Authority of the City of Crystal as follows:
1. The Contract is approved. The President and Executive Director are authorized
and directed to sign the Contract and any other documents or certificates necessary to carry
out the transactions described in the Contract.
2. The Contract is approved in substantially the form on file in City Hall, subject to
modifications that do not alter the substance of the transaction and are approved by the
President and Executive Director; provided that execution of the document will be conclusive
evidence of their approval.
Page 2 of 2
CR225\487\1085350.v2
Adopted by the Board of Commissioners of the Economic Development Authority of the City of
Crystal, Minnesota, this 7th day of April, 2026.
______________________________
David Cummings,
President
ATTEST:
_______________________________
Adam R. Bell,
Executive Director
1079423.v6
CONTRACT
FOR
PRIVATE DEVELOPMENT
By and Between
THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
and
APARTMENTS CRYSTAL HOLDINGS, LLC
This document drafted by:
KENNEDY & GRAVEN, CHARTERED
150 South Fifth Street
Suite 700
Minneapolis, MN 55402
(612) 337-9300
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TABLE OF CONTENTS
PAGE
PREAMBLE ....................................................................................................................................1
ARTICLE I
Definitions
Section 1.1. Definitions................................................................................................................2
Section 1.2. Exhibits ...................................................................................................................5
Section 1.3. Rules of Interpretation ............................................................................................5
ARTICLE II
Representations and Warranties
Section 2.1. Representations by the EDA ....................................................................................6
Section 2.2. Representations and Warranties by the Developer ..................................................6
ARTICLE III
Acquisition of Development Property; Public Assistance
Section 3.1. Acquisition of Development Property .....................................................................7
Section 3.2. Issuance of Pay-As-You-Go Note ...........................................................................7
Section 3.3. Conditions Precedent to Issuance of the Note .........................................................8
Section 3.4. Records ....................................................................................................................9
Section 3.5. Lookback Provisions and Reduction of Note ..........................................................9
Section 3.6. Business Subsidy .....................................................................................................9
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements ...............................................................9
Section 4.2. Preliminary Plans and Construction Plans .............................................................10
Section 4.3. Commencement and Completion of Construction .................................................10
Section 4.4. Certificate of Completion ......................................................................................11
Section 4.5. Compliance with Labor Laws ................................................................................11
ARTICLE V
Insurance
Section 5.1. Insurance ................................................................................................................12
Section 5.2. Evidence of Insurance ...........................................................................................13
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ARTICLE VI
Payment of Taxes; Assessment Agreement; Use of Tax Increment
Section 6.1. Taxes ......................................................................................................................13
Section 6.2. Assessment Agreement ..........................................................................................14
Section 6.3. Suspension or Reduction of Payment on Note ......................................................14
Section 6.4. Right to Collect Delinquent Taxes and Special Assessments ................................15
Section 6.5. Use of Tax Increment.............................................................................................15
ARTICLE VII
Restrictions on Sale of Minimum Improvements; Termination of Agreement
Section 7.1. Prohibition Against Sale of Minimum Improvements ...........................................15
Section 7.2. Termination of Agreement .....................................................................................16
ARTICLE VIII
Events of Default
Section 8.1. Events of Default Defined .....................................................................................16
Section 8.2. Remedies on Default ..............................................................................................17
Section 8.3. Remedies after Certificate of Completion .............................................................18
Section 8.4. No Remedy Exclusive............................................................................................18
Section 8.5. No Additional Waiver Implied by One Waiver .....................................................18
Section 8.6. Acceptance of Third-Party Cure ............................................................................18
ARTICLE IX
Additional Provisions
Section 9.1. Conflict of Interests; Representatives Not Individually Liable .............................19
Section 9.2. Equal Employment Opportunity ............................................................................19
Section 9.3. Restrictions on Use ................................................................................................19
Section 9.4. Notices and Demands ............................................................................................19
Section 9.5. Counterparts ...........................................................................................................20
Section 9.6. Disclaimer of Relationships ...................................................................................20
Section 9.7. Amendment ............................................................................................................20
Section 9.8. Recording; Agreement Runs with the Land ...........................................................20
Section 9.9. Release and Indemnification Covenants ................................................................20
Section 9.10. Titles of Articles and Sections ...............................................................................20
Section 9.11. Governing Law; Venue ..........................................................................................20
Section 9.12. Fees and Charges ...................................................................................................21
Section 9.13 Limited Liability ...................................................................................................21
Section 9.14 Estoppel Certificates ..............................................................................................21
TESTIMONIUM............................................................................................................................22
SIGNATURES ......................................................................................................................... 22-23
EXHIBIT A LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY
EXHIBIT B LIST OF PRELIMINARY PLANS
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EXHIBIT C FORM OF CERTIFICATE OF COMPLETION
EXHIBIT D FORM OF AUTHORIZING RESOLUTION WITH NOTE
EXHIBIT E FORM OF INVESTMENT LETTER
EXHIBIT F PROFORMA, LOOKBACK AND TOTAL DEVELOPMENT COSTS
EXHIBIT G FORM OF ASSESSMENT AGREEMENT
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1079423.v6
CONTRACT FOR PRIVATE DEVELOPMENT
This Contract for Private Development (the “Agreement”) is made this _____ day of
_____________, 2026, by and between the Economic Development Authority of the City of
Crystal , a public body corporate and politic under the laws of Minnesota, having its principal office
at 4141 Douglas Drive North, Crystal, MN 55422 (the “EDA”), and Apartments Crystal
Holdings, LLC, a Minnesota limited liability company, having its principal office at 1834 E. 38th
Street, Minneapolis, MN 55407 (the “Developer”).
WITNESSETH:
WHEREAS, the EDA was established by the City of Crystal (the “City”) under
Minnesota Statutes, Sections 460.090 to 469.1081, as amended (the “EDA Act”), and has all the
powers of a housing and redevelopment authority under Minnesota Statutes, Sections 469.001 to
469.047, as amended (the “HRA Act”); and
WHEREAS, the City of Crystal (the “City”) and the EDA previously established the
Redevelopment Project No. 1 (the “Project Area”) and adopted a Redevelopment Plan to
encourage development and redevelopment in a portion of the community; and
WHEREAS, the EDA finds that it is in the public interest, helpful for the tax base and
beneficial for the health, safety and welfare of the community as a whole to residential
development in the community in locations where it is compatible with surrounding land uses; and
WHEREAS, the EDA finds that, due to market conditions which exist today and are likely
to persist for the foreseeable future, the private sector alone is not able to accomplish construction
of residential developments and, therefore, such will not occur without public intervention; and
WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 469.174
through 469.1794, as amended, (the “TIF Act”), on February 16, 2026 the EDA adopted a
resolution creating, within the Project Area, Tax Increment Financing District No. 6 (Wells Fargo)
as a redevelopment district (the “TIF District”) the legal description of which is attached hereto as
Exhibit A, and adopted a tax increment financing plan therefor (the “TIF Plan”), which provides
for the use of tax increment financing in connection with development within the Project Area and
the TIF District; and
WHEREAS, the City Council of the City approved the TIF District after a duly noticed
public hearing on March 17, 2026; and
WHEREAS, the Developer has proposed to develop the property located at or
approximately at 7000 56th Avenue North with one building including approximately 178 market
rate rental housing units with approximately 186 stalls of underground parking and 76 surface
parking stalls to be owned and operated by the Developer, improvements including upgraded
pedestrian ramps and signals to meet ADA compliance, sidewalks, and lighting, all as more fully
described herein; and
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WHEREAS, the EDA and the City believe it is in the vital and best interests of Crystal and
the health, safety and welfare of its residents, and in accord with the public purposes and provisions
of the applicable state and local laws and requirements for which the Redevelopment Project
Number 1 and Tax Increment Financing District No. 6 were or will be established.
NOW, THEREFORE, in consideration of the covenants and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
ARTICLE I
Definitions
Section 1.1. Definitions. In this Agreement the following terms shall have the meanings
given below unless a different meaning clearly appears from the context:
“Administrative Costs” means the administrative expenses incurred by the EDA regarding
the TIF District as defined in section 469.174, subd. 14 of the TIF Act.
“Affiliate” means a corporation, partnership, joint venture, association, business trust or
similar entity organized under the laws of the United States of America or a state thereof which is
directly controlled by or under common control with the Developer or any other Affiliate. For
purposes of this definition, control means the power to direct management and policies through
the ownership of at least a majority of its voting securities or the right to designate or elect at least
a majority of the members of its governing body by contract or otherwise.
“Agreement” means this Agreement, as the same may be from time to time modified,
amended, or supplemented.
“Assessment Agreement” means an agreement in the general form attached hereto as
Exhibit G establishing a Minimum Market Value for the Development Property and Minimum
Improvements.
“Assessor” means the Hennepin County assessor.
“Authorizing Resolution” means the resolution, in substantially the form attached hereto
as Exhibit D, which authorizes the issuance of the Note by the EDA Executive Director upon
satisfaction of the conditions precedent specified in Section 3.3 of this Agreement.
“Available Tax Increment” means 90 percent of the Tax Increment paid to the EDA by the
County with respect to the Development Property and the Minimum Improvements, subject to
adjustment as provided in section 4.6 of this Agreement.
“Business Subsidy Act” means Minnesota Statutes, sections 116J.993 through 116J.995,
as amended.
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“Certificate of Completion” means the certificate, in substantially the form attached hereto
as Exhibit C, which will be provided to the Developer pursuant to Article IV of this Agreement.
“City” means the city of Crystal, a municipal corporation under the laws of Minnesota.
“City Approvals” means, collectively, the Development Contract and any other land use
approvals required by the City prior to constructing the Minimum Improvements.
“Construction Plans” means the final plans for construction of the Minimum Improvements
which shall be submitted by the Developer pursuant to section 4.2 of this Agreement.
“County” means Hennepin County, Minnesota.
“Developer” means Apartments Crystal Holdings, LLC, a Minnesota limited liability
company.
“Development Contract” means the Development Contract between the City and the
Developer.
“Development Property” means the property generally located at 7000 56th Avenue North,
Crystal, MN 55428 and is legally described in Exhibit A attached hereto.
“Economic Development Authorities Act” or “EDA Act” means Minnesota Statutes,
sections 469.090 through 469.108, as amended.
“Economic Development Authority” or “EDA” means the Economic Development
Authority for the City of Crystal, a public body corporate and politic under the laws of Minnesota.
“Event of Default” means an action by the Developer or the EDA listed in Article VIII of
this Agreement.
“Final Payment Date” means the earliest of (i) February 1, 2038; (ii) the date the principal
of the Note has been paid in full; or (iii) the date this Agreement or the Note is terminated or
cancelled in accordance with the terms of this Agreement.
“Housing and Redevelopment Authorities Act” or “HRA Act” means Minnesota Statutes,
sections 469.001 through 469.047, as amended.
“Material Change” means a change in the Construction Plans which result in an increase
or decrease in construction costs by $750,000 or more.
“Maturity Date” means the date the Note has been paid in full or terminated, whichever is
earlier.
“Minimum Improvements” means a residential development of one five story building
including approximately 178 market rate rental housing units and necessary public improvements
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including but not limited to upgraded pedestrian ramps and signals to meet ADA compliance,
sidewalks, and lighting as more fully defined in section 4.6(a) of this Agreement. After completion
of the Minimum Improvements, the term shall mean the Development Property as improved by
the Minimum Improvements.
“Minimum Market Value” means a minimum market value of the Development Property
and Minimum Improvements of $40,050,000 as of January 2, 2029 for taxes payable beginning in
2030.
“Note” means the Tax Increment Revenue Note, in substantially the form set forth in the
Authorizing Resolution, to be delivered by the EDA to the Developer to reimburse the Developer
for the Qualifying Costs pursuant to Article III of this Agreement.
“Payment Date” means August 1, 2028 and each February 1 and August 1 through
February 1, 2038. (If the Note is issued after August 1, 2028, the initial payment date shall be the
next subsequent February 1 or August 1 after the issuance date.)
“Preliminary Plans” means the plans of the Minimum Improvements referenced in
Exhibit B attached hereto.
“Public Assistance” means the financial assistance to be offered by the EDA to the
Developer through issuance of the Note.
“Qualifying Costs” means all costs authorized by the TIF Act, including, without limitation
the cost of land acquisition, demolition of existing improvements, necessary remediation,
earthwork, grading, foundations and footings, site preparation, landscaping and site improvements,
utility costs, underground parking improvements, and other qualifying expenditures made by the
Developer related to completion of the Minimum Improvements which the EDA intends to
partially reimburse through the Note.
“Redevelopment Plan” means the Redevelopment Plan for Redevelopment Project No. 1,
which was modified most recently on March 17 2026.
“Redevelopment Project” or “Project” means the Redevelopment Project No. 1.
“Sale” means any conveyance of fee simple title in and to the Minimum Improvements or
the Development Property, as more fully defined in Article VII of this Agreement.
“State” means the state of Minnesota.
“Substantial Completion” means completion of the Minimum Improvements to a degree
allowing the issuance of a certificate of occupancy by the City’s building official.
“Tax Increment” means the tax increment, as that term is defined in Minnesota Statutes,
section 469.174, subd. 25, which is paid to the EDA by the County with respect to the Minimum
Improvements and the Development Property.
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“Tax Increment Financing Act” or “TIF Act” means Minnesota Statutes, sections 469.174
through 469.1799, as amended.
“Tax Increment Financing District” or “TIF District” means Tax Increment Financing
District No. 6 (Wells Fargo), a redevelopment district.
“Tax Increment Financing Plan” or “TIF Plan” means the tax increment plan for Tax
Increment Financing District No. 6 (Wells Fargo) which was approved by the EDA on February
17, 2026 and the City on March 17, 2026.
“Tax Official” means the Assessor, County auditor, County or state board of equalization,
the commissioners of revenue of the State, or any State or federal district court, the tax court of
the State, or the State Supreme Court.
“Termination Date” means the date Tax Increment Financing District No. 6 (Wells Fargo)
terminates, which date is the earliest of: (i) the date all of the EDA’s financial obligations with
regard to the TIF District have been satisfied; (ii) the date that this Agreement and the Note are
terminated by the EDA for any reason; or (iii) payment of all amounts owed under the Note.
“Unavoidable Delays” means delays which are not attributable to the Developer and are
the direct result of adverse weather conditions; strikes or other labor troubles; delays in delivery
of materials, fire or other casualty to the Minimum Improvements; litigation commenced by third
parties which, by injunction or other similar judicial action, directly results in delays; or, except
those of the EDA or the City reasonably contemplated by this Agreement, any acts or omissions
of any federal, State or local governmental unit which directly result in delays in construction of
the Minimum Improvements; default or unanticipated delay by the EDA or the City under this
Agreement; or any other cause beyond the reasonable control of a party.
Section 1.2. Exhibits. The following exhibits are attached to and by reference made a part
of this Agreement:
Exhibit A. Legal Description of Development Property
Exhibit B. List of Preliminary Plans
Exhibit C. Form of Certificate of Completion
Exhibit D. Form of Authorizing Resolution with Note
Exhibit E. Form of Investment Letter
Exhibit F. Proforma, Lookback and Total Development Costs
Exhibit G. Form of Assessment Agreement
Section 1.3. Rules of Interpretation. (a) This Agreement shall be interpreted in accordance
with and governed by the laws of Minnesota.
(b) The words “herein” and “hereof” and words of similar import, without reference to
any particular section or subdivision, refer to this Agreement as a whole rather than any particular
section or subdivision hereof.
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(c) References herein to any particular section or subdivision hereof are to the section
or subdivision of this Agreement as originally executed.
(d) Any titles of the several parts, articles and sections of this Agreement are inserted
for convenience and reference only and shall be disregarded in construing or interpreting any of
its provisions.
ARTICLE II
Representations and Warranties
Section 2.1. Representations by the EDA. The EDA makes the following representations
as the basis for the undertaking on its part herein contained:
(a) The EDA is an economic development authority duly organized and existing under
the EDA Act and also having the powers of a housing and redevelopment authority under the HRA
Act. The EDA has the authority to enter into this Agreement and carry out its obligations
hereunder.
(b) The EDA has approved execution of this Agreement. The individuals executing
this Agreement and related agreements and documents on behalf of the EDA have the authority to
do so and to bind the EDA by their actions.
(c) Redevelopment Project No. 1 is a redevelopment project within the meaning of the
HRA Act and was created, adopted and approved in accordance with the HRA Act.
(d) TIF District No. 6 (Wells Fargo) is a redevelopment district within the meaning of
the TIF Act and was created, adopted and approved in accordance with the TIF Act.
(e) There are no previous agreements to which the EDA is a party pertaining to the
Development Property which would preclude the parties from entering into this Agreement or
which would impede the fulfillment of the terms and conditions of this Agreement.
(f) The activities of the EDA pursuant to this Agreement are undertaken pursuant to
the modified Redevelopment Plan and the TIF Plan and are for the purpose of redevelopment of
the Development Property with a housing project.
(g) The EDA will act in a timely manner to consider all approvals required under this
Agreement and will cooperate with the Developer in seeking consideration of approvals which
must be granted by the City or other public entities.
Section 2.2. Representations and Warranties by the Developer. The Developer makes the
following representations and warranties as the basis for the undertaking on its part herein
contained:
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(a) The Developer is a limited liability company validly existing under the laws of the
state of Minnesota. The Developer has the authority to enter into this Agreement and carry out its
obligations hereunder.
(b) The persons executing this Agreement and related agreements and documents on
behalf of the Developer have the authority to do so and to bind the Developer by their actions.
(c) The Developer has entered into a purchase agreement to acquire the Development
Property and anticipates closing on the acquisition of the Development Property by July 30, 2026.
(d) The Developer will construct the Minimum Improvements in substantial
accordance with the terms of this Agreement, the Redevelopment Plan, the TIF Plan, the
Construction Plans and all local, State and federal laws and regulations, including, but not limited
to, environmental, zoning, building code and public health laws and regulations.
(e) The Developer will apply for and use all reasonable efforts to obtain, in a timely
manner, all required permits, licenses and approvals from the City, and will meet, in a timely
manner, the requirements of all applicable local, State and federal laws and regulations which must
be obtained or met before the Minimum Improvements may be lawfully constructed or used for
their intended purpose.
(f) The Developer has analyzed the economics of the cost of land acquisition,
demolition of existing improvements, potential remediation, earthwork, grading, foundations and
footings, site preparation, landscaping and site improvements, utility costs, underground parking
improvements and construction of the Minimum Improvements and concluded that, absent the
Public Assistance to be offered under this Agreement, it would not undertake this project.
(g) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of,
the terms, conditions or provisions of any corporate organizational documents or any evidence of
indebtedness, agreement or instrument of whatever nature to which the Developer is now a party
or by which it is bound, or constitutes a default under any of the foregoing.
ARTICLE III
Acquisition of Development Property; Public Assistance
Section 3.1. Acquisition of Development Property. Subject to Unavoidable Delays, the
Developer agrees to acquire the Development Property in fee by July 30, 2026. The EDA makes no
representations to the Developer regarding the suitability of the Development Property for the use and
purpose intended by the Developer.
Section 3.2. Issuance of Pay-As-You-Go Note. (a) In consideration of the Developer
incurring the Qualifying Costs while constructing the Minimum Improvements, the EDA will issue
to the Developer the Note in an aggregate principal amount not to exceed $3,673,000 in substantially
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the form set forth in the Authorizing Resolution attached hereto as Exhibit D. The EDA and the
Developer agree that the consideration from the Developer for the purchase of the Note will consist
of the Developer’s payment of the Qualifying Costs which are eligible for reimbursement with Tax
Increment and which are incurred by the Developer in at least the principal amount of the Note. The
Authorizing Resolution will authorize delivery of the Note by the EDA Executive Director upon
satisfaction by the Developer of all the conditions precedent specified in section 3.3 of this
Agreement.
(b) The Developer understands and acknowledges that the EDA makes no
representations or warranties regarding the amount of Available Tax Increment, or that revenues
pledged to the Note will be sufficient to pay the Note. Any estimates of Tax Increment prepared
by the EDA or its financial advisors in connection with the TIF District or this Agreement are for
the benefit of the EDA and are not intended as representations on which the Developer may rely.
Section 3.3. Conditions Precedent to Issuance of the Note. Notwithstanding anything in
this Agreement to the contrary, the EDA Executive Director is authorized to issue the Note to the
Developer only after all of the following conditions precedent have been satisfied:
(a) The Developer has acquired the Development Property in fee;
(b) The Developer has executed this Agreement and it has been recorded against the
Development Property;
(c) The Assessment Agreement has been fully executed and recorded against the
Development Property;
(d) The Developer has completed the Minimum Improvements and the EDA has issued
the Certificate of Completion;
(e) The Developer has submitted evidence, including paid receipts and lien waivers, it
has incurred and paid for the Qualifying Costs in an amount not less than the principal amount of
the Note;
(f) The Developer has submitted the Investment Letter in the general form attached hereto
as Exhibit E;
(g) The Developer has submitted evidence satisfactory to the EDA to comply with section
3.5(c);
(h) The Developer has made the certification required by Section 4.5 regarding proper
payments having been made to all contractors, subcontractors and project laborers;
(i) The EDA has adopted the Authorizing Resolution; and
(j) There has been no Event of Default on the part of the Developer which has not been
cured.
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Section 3.4. Records. The EDA and its representatives will have the right at all reasonable
times after reasonable notice to inspect, examine and copy invoices paid by the Developer and/or
its general contractor relating to the Minimum Improvements and the Qualifying Costs for which
the Developer will be reimbursed under the Note.
Section 3.5. Lookback Provisions and Reduction of Note.
(a) Generally. The financial assistance to the Developer under this Agreement payable
under the TIF Notes is based on certain assumptions regarding likely costs and expenses associated
with constructing the Minimum Improvements in connection with such TIF Note. The EDA and
the Developer agree that those assumptions will be reviewed at the times described in this Section,
and that the amount of Tax Increment assistance provided under Section 3.2 may be adjusted
accordingly.
(b) Intentionally Deleted.
(c) Lookback Calculation
(i) After completion of the Minimum Improvements but prior to issuance of
the Note, the Redeveloper agrees to submit evidence of its actual costs to the EDA for
comparison with the estimated total development costs listed on Exhibit F. If the actual
total Qualifying Costs are lower than $3,673,000 (the “Estimated Qualifying Cost”), the
principal amount of the Note will be reduced by the amount by which the Estimated
Qualifying Costs exceed the actual Qualifying Costs. Similarly, if the total development
costs are less than $44,080,000 (the “Estimated Development Costs”), the principal amount
of the Note shall be reduced by the amount by which the Estimated Development Costs
exceed the actual redevelopment costs. The Note will not be issued until the EDA has
compared actual with estimated total redevelopment costs as described herein and adjusted
the principal amount of the Note, if necessary.
Section 3.6. Business Subsidy. The Public Assistance offered to the Developer under this
Agreement is not a business subsidy under the Business Subsidy Act because it qualifies for the
exceptions under section 116J.993, subd. 3(7) for housing and subd. 3(17) regarding
redevelopment.
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will
construct the Minimum Improvements on the Development Property in accordance with the
Preliminary Plans and the Construction Plans. The Developer acknowledges that, in addition to
the requirements of this Agreement, construction of the Minimum Improvements will necessitate
compliance with the City Approvals and possibly approvals by other governmental agencies. To
the extent such approvals have not already been obtained, the Developer agrees to submit in a
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timely manner all applications for and pursue to their conclusion all other approvals needed prior
to constructing the Minimum Improvements.
Section 4.2. Preliminary Plans and Construction Plans. (a) The Developer has submitted
and the EDA has approved the Preliminary Plans listed in Exhibit B attached hereto. Prior to
beginning construction on the Minimum Improvements, the Developer shall submit dated
Construction Plans to the EDA. The Construction Plans shall provide for the construction of the
Minimum Improvements and shall be in substantial conformity with the Preliminary Plans and this
Agreement. The EDA will approve the Construction Plans if they (1) are consistent with the
Preliminary Plans; (2) conform to all applicable federal, State and local laws, ordinances, rules and
regulations; (3) are adequate to provide for the construction of the Minimum Improvements; (4)
conform to the State building code; and (5) if there has occurred no uncured Event of Default on
the part of the Developer. Except as otherwise set forth herein, no approval by the EDA shall
relieve the Developer of the obligation to comply with the terms of this Agreement and the terms
of all applicable federal, State and local laws, ordinances, rules and regulations in the construction
of the Minimum Improvements. Except as otherwise set forth herein, no approval by the EDA
shall constitute a waiver of an Event of Default. The EDA shall use good faith efforts to review
the Construction Plans and either approve or reject them in writing within 15 business days after
receipt. Any rejection, in whole or in part, shall set forth in detail the reasons for rejection. The
EDA’s approval shall not be unreasonably withheld or conditioned. Said approval shall constitute
a conclusive determination that the Construction Plans (and the Minimum Improvements,
constructed in accordance with said plans) comply to the Authority’s satisfaction with the
provisions of this Agreement relating thereto.
(b) If the Developer desires to make any Material Change in the Construction Plans
after approval, the Developer shall submit the proposed change to the EDA for its approval. If the
proposed change is consistent with the Preliminary Plans or is otherwise acceptable to the EDA
and meets all other requirements of section 4.2(a) above, the EDA shall approve the proposed
change. Such change in the Construction Plans shall be deemed approved by the EDA unless
rejected within the required 15 business day period, in whole or in part, by written notice by the
EDA to the Developer, setting forth in detail the reasons for rejection.
(c) Through the Termination Date, all sewer access charges (“SAC”) and water access
charges (“WAC”) made by the City regarding the Minimum Improvements or commercial tenant
improvements shall be paid by the Developer.
Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Developer shall commence construction of the Minimum Improvements by no later
than December 31, 2026. All work with respect to the Minimum Improvements to be constructed
or provided by the Developer on the Development Property shall be in conformity with the
Construction Plans. The Developer shall make such reports to the EDA regarding construction of
the Minimum Improvements as the EDA deems necessary or helpful in order to monitor progress
on construction of the Minimum Improvements. Subject to Unavoidable Delays, the Developer
shall have achieved Substantial Completion of all of the Minimum Improvements by no later than
December 31, 2028.
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Section 4.4. Certificate of Completion. (a) After Substantial Completion of the Minimum
Improvements in accordance with the Construction Plans and at the written request of the
Developer, the EDA will, within 20 days thereafter, furnish the Developer with an appropriate
Certificate of Completion so certifying in the form of Exhibit C attached hereto. Such Certificate
of Completion by the EDA shall be a conclusive determination of satisfaction and termination of
the agreements and covenants in this Agreement with respect to the obligations of the Developer
to construct the Minimum Improvements and the dates for the beginning and completion thereof.
(b) The Certificate of Completion shall be in such form set forth in Exhibit C and as
will enable it to be recorded in the proper County office for the recordation of deeds and other
instruments pertaining to the Development Property. If the EDA shall refuse to provide a
Certificate of Completion in accordance with the provisions of this section 4.4, the EDA shall
promptly notify Developer within the same 20-day period following receipt of request by the
Developer for the Certificate of Completion, and such notification from the EDA shall include a
written statement, indicating in adequate detail in what respects the Developer has failed to
complete the relevant portion of the Minimum Improvements in accordance with the Construction
Plans and what measures or acts will be necessary, in the opinion of the EDA, for the Developer
to take or perform in order to obtain such certification. If the EDA fails to issue such a written
statement within such 20-day period, the EDA shall be deemed to have waived its right to do so
and shall be deemed to have issued a Certificate of Completion to the Developer. The Developer
shall have 60 days following receipt of the EDA’s written response to cure or agree to terms with
the EDA regarding issues to be resolved prior to the Developer obtaining a Certification of
Completion from the EDA.
Section 4.5. Compliance with Labor Laws. (a) The Developer shall not use any
disqualified contractors or permit the use of any disqualified subcontractors listed on the
Minnesota State “Suspended/Debarred Vendor Detailed Information” website. The Developer
shall and shall require all contractors and subcontractors to comply with all applicable federal,
state, and local labor laws.
(b) The Developer shall and shall require all contractors and subcontractors to fully
and completely comply with all otherwise applicable federal, state and local labor and employment
laws, including, without limitation, those relating to wage and hour requirements, if any such laws
are applicable. The Developer shall maintain or ensure access to all documentation necessary to
establish compliance with the foregoing applicable laws, if any, and shall allow the EDA or its
designee reasonable access to such data.
(c) The Developer shall require its prime contractor to report any wage claims that are
filed with the Minnesota Department of Labor and Industry (the “DLI”) or adverse determinations
of wage theft or payroll fraud against such prime contractor arising from the Minimum
Improvements, and shall require that its prime contractor require its subcontractors to report any
wage claims that are filed with the DLI or adverse determinations of wage theft or payroll fraud
against such subcontractors arising from the Minimum Improvements. The Developer shall
promptly notify the EDA of any wage claims filed with DLI or adverse determinations of wage
theft or payroll fraud against the prime contractor or subcontractor arising from the Minimum
Improvements, to the extent that the Developer obtains actual knowledge of such claims or adverse
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determinations. The Developer shall require its prime contractor to provide a list to the Developer
and the EDA of all entities contracted by the prime contractor performing work on the Minimum
Improvements that are required to register through the DLI’s Contractor Registration Program (the
“Contractor List”). The Contractor List shall be provided to the Developer and EDA within 90
days after the commencement of construction of the Minimum Improvements and updated and
shared every 90 days until the completion of the Minimum Improvements.
(d) If a third party files a claim with the DLI involving wage theft or payroll fraud
regarding any contractor or subcontractor doing work on the Minimum Improvements, the
Developer shall fully cooperate with DLI.
(e) The Developer shall certify to the EDA that, to the best of the Developer’s
knowledge , proper payments to all contractors, subcontractors and project laborers have been
made prior to the issuance of a Certificate of Completion and as a condition precedent to issuance
of the TIF Note, provided, however, that in the event the Developer disputes a lien, the Developer
may bond over or establish an escrow account to protect against the lien on terms reasonably
acceptable to the EDA.
(f) The Developer acknowledges that failure to substantially comply with this Section
4.5 will, after the expiration of all applicable notice and cure periods, be an Event of Default and
could result in non-issuance of the TIF Note, or, if the TIF Note has already been issued, delaying,
reducing and/or terminating TIF Note payments.
ARTICLE V
Insurance
Section 5.1. Insurance. The Developer or its general contractor will provide and maintain
at all times during the process of constructing the Minimum Improvements a Special Form Basis
Insurance Policy and, from time to time during that period, at the request of the EDA no more
frequently than once annually, furnish the EDA with proof of payment of premiums on policies
covering the following:
(1) Builder’s risk insurance, written on the so-called “Builder’s Risk –
Completed Value Basis,” in an amount equal to one hundred percent (100%) of the
insurable value of the applicable portion of the Minimum Improvements at the date of
completion, and with coverage available in reporting form on the so-called “special” form
of policy;
(2) Commercial general liability insurance (including operations, contingent
liability, operations of subcontractors, completed operations and contractual liability
insurance) with limits against bodily injury and property damage of not less than
$2,000,000 for each occurrence (to accomplish the above-required limits, an umbrella
excess liability policy may be used); and
(3) Workers’ compensation insurance, with statutory coverage.
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Section 5.2. Evidence of Insurance. All insurance required in this Article V of this
Agreement must be taken out and maintained in responsible insurance companies selected by the
Developer which are authorized under the laws of Minnesota to assume the risks covered thereby.
In lieu of separate policies, the Developer may maintain a single policy, blanket or umbrella
policies, or a combination thereof, having the coverage required herein. Upon written request by
the EDA, the Developer agrees to deposit with the EDA a certificate or certificates or binders of
the respective insurers stating that such insurance is in force and effect.
ARTICLE VI
Payment of Taxes; Assessment Agreement; Use of Tax Increment
Section 6.1. Taxes. The Developer agrees that prior to the Termination Date: (i) it will
not seek administrative or judicial review of the applicability of any tax statute determined by any
Tax Official to be applicable to the Minimum Improvements or the Development Property or raise
the inapplicability of any such tax statute as a defense in any proceedings, including delinquent
tax proceedings; (ii) it will not seek administrative or judicial review of the constitutionality of any
tax statute determined by any Tax Official to be applicable to the Minimum Improvements or the
Development Property or raise the unconstitutionality of any such tax statute as a defense in any
proceedings, including delinquent tax proceedings; and (iii) it will not cause a reduction in the
assessed value of the Minimum Improvements or the Development Property below the Minimum
Market Value described in section 6.2(a) of this Agreement through:
(a) willful destruction of the Minimum Improvements or any part thereof;
(b) failure to reconstruct damaged or destroyed property;
(c) a request to the Assessor to reduce the assessed value of all or any portion of the
Minimum Improvements or the Development Property below the Minimum Market Value;
(d) a petition to the board of equalization of the County to reduce the assessed value of
all or any portion of the Minimum Improvements or the Development Property below the
Minimum Market Value;
(e) a petition to the board of equalization of the State or the commissioner of revenue
of the State to reduce the assessed value of all or any portion of the Minimum Improvements or
the Development Property below the Minimum Market Value;
(f) an action in a district court of the State or the tax court of the State seeking a
reduction in the assessed value of the Minimum Improvements or the Development Property below
the Minimum Market Value;
(g) an application to the commissioner of revenue of the State or to any local taxing
jurisdiction requesting an abatement or deferral of real estate taxes on the Minimum Improvements
or the Development Property;
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(h) a transfer of the Minimum Improvements or the Development Property, or any part
thereof, to an entity exempt from the payment of real estate taxes under State law and that entity
applies for tax exemption; or
(i) any other proceedings, whether administrative, legal or equitable, with any
administrative body within the County or the State or with any court of the State or the federal
government.
Section 6.2. Assessment Agreement. (a) At the time of execution of this Agreement, the
EDA and the Developer shall execute an Assessment Agreement for the Development Property
and Minimum Improvements. The Assessment Agreement shall specify an aggregate Minimum
Market Value of $40,050,000 as of January 2, 2030 for taxes payable beginning in 2031 through
the Termination Date, notwithstanding any failure to start or complete the Minimum
Improvements by said date or any failure to reconstruct the Minimum Improvements after damage
or destruction before the Termination Date.
(b) The Assessment Agreement shall be substantially in the form attached hereto as
Exhibit G. Nothing in the Assessment Agreement shall limit the discretion of the Assessor to
assign a market value to the Minimum Improvements or the Development Property in excess of
the Minimum Market Value nor prohibit the Developer from seeking through the exercise of legal
or administrative remedies a reduction in any increase in the market value established pursuant to
section 6.2(a) of this Agreement; provided, however, that the Developer shall not seek a reduction
of such market value below the Minimum Market Value set forth in the Assessment Agreement in
any year so long as such Assessment Agreement shall remain in effect. The Assessment
Agreement shall remain in effect until the Termination Date; provided that if at any time before
the Termination Date the Assessment Agreement is found to be terminated or unenforceable by
any Tax Official or court of competent jurisdiction, the Minimum Market Value described in this
section 6.2 shall remain an obligation of the Developer or its successors and assigns (whether or
not such value is binding on the Assessor), it being the intent of the parties that the obligation of
the Developer to maintain, and not seek reduction of, the Minimum Market Value specified in this
Section 6.2 is an obligation under this Agreement as well as under the Assessment Agreement, and
is enforceable by the EDA against the Developer, its successors and assigns, in accordance with
the terms of this Agreement and the Assessment Agreement. Notwithstanding anything contained
in this Agreement to the contrary, the Developer shall not be precluded from contesting the market
value of the Minimum Improvements or the Development Property, or any substantial portion
thereof, if the Minimum Improvements or the Development Property is acquired by a public entity
through eminent domain prior to the Termination Date.
Section 6.3. Suspension or Reduction of Payment on Note. (a) The Developer may, at any
time following the issuance of the Certificate of Completion, seek through petition or other means
to have the Assessor’s estimated market value for the Minimum Improvements or Development
Property reduced to not less than the Minimum Market Value. Such activity must be preceded by
written notice from the Developer to the EDA indicating its intention to do so.
(b) Upon receiving notice that the Developer seeks a reduction in the Assessor’s
estimated market value of all or any portion of the Minimum Improvements or Development
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Property below the Minimum Market Value, or otherwise learning of the Developer’s intentions,
the EDA may suspend or reduce payments due under the Note except for the portion of such
payments from Available Tax Increment, based on the Minimum Market Value, until the actual
amount of the reduction in market value is determined, whereupon the EDA will make the
suspended payments less any amount that the EDA is required to repay the County as a result any
retroactive reduction in market value of the Minimum Improvements or Development Property.
During the period that the payments are subject to suspension, the EDA may make partial payments
on the Note, from the amounts subject to suspension, if it determines, in its sole and absolute
discretion, that the amount retained will be sufficient to cover any repayment which the County
may require. The EDA’s suspension or reduction of payments of the Note pursuant to this
Section 6.3 shall not be considered a default under section 8.1 hereof.
Section 6.4. Right to Collect Delinquent Taxes and Special Assessments. The Developer
acknowledges that at all times prior to the Termination Date the EDA shall have the right to sue
the Developer or its successors and assigns to collect delinquent real estate taxes and any penalty
or interest thereon and special assessments due on the Development Property or the Minimum
Improvements and to pay over the same as a tax payment to the County auditor. In any such suit
in which the EDA prevails, the EDA shall also be entitled to recover its reasonable out-of-pocket
costs and expenses, including attorney fees.
Section 6.5. Use of Tax Increment. The TIF District is a redevelopment district within the
meaning of section 469.174, subd. 10a of the TIF Act. Except for payments to the Developer as
provided for in this Agreement and the Note, the EDA shall be free to use any Tax Increment it
receives from the County with respect to the TIF District for any purpose for which such increment
may lawfully be used under the TIF Act and the EDA shall have no obligations to the Developer
with respect to the use of such Tax Increment.
ARTICLE VII
Restrictions on Sale of Minimum Improvements; Termination of Agreement
Section 7.1. Prohibition Against Sale of Minimum Improvements.
(a) The Developer represents and agrees that its use of the Development Property and
its other undertakings pursuant to the Agreement, are, and will be, used for the purpose of
construction of the Minimum Improvements on the Development Property and not for speculation
in land holding. The Developer represents and agrees that, prior to the issuance of a Certificate of
Completion regarding the Minimum Improvements, there shall be no Sale of the Development
Property or the Minimum Improvements constructed thereon nor shall the Developer suffer any
such Sale to be made, without the prior written approval of the EDA, which approval will not be
unreasonably withheld, conditioned or delayed; provided, however, that the EDA shall be satisfied,
in its reasonable commercial discretion, that the party proposed to acquire the Property and/or the
Minimum Improvements thereon has sufficient resources and experience necessary to carry out
the terms of this Agreement. Notwithstanding the foregoing, the Developer shall be entitled to
lease housing units and commercial space within the Minimum Improvements to third parties
without the prior written approval of the EDA. As a condition of approval of any such sale, the
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EDA shall require, at a minimum, that the proposed transferee shall have entered into an agreement
whereby the transferee expressly assumes all of the Developer’s obligations under this Agreement.
Any such agreement shall include the EDA as a party and otherwise be in form and substance
reasonably acceptable to the EDA.
(b) Notwithstanding anything in this Agreement to the contrary, Developer is
authorized, without the approval of EDA, to obtain construction and permanent financing for the
Minimum Improvements and to mortgage the Development Property to provide security for the
construction and permanent financing, and the EDA is authorized to subordinate this Agreement
to such mortgage. In the event of foreclosure, deed-in-lieu of foreclosure or other transfer of the
Minimum Improvements or the Development Property as a result of default under such mortgage,
such transfer shall require the prior written approval of the EDA, which shall not be unreasonably
withheld, conditioned or delayed. As a condition of approval of any such transfer, the EDA shall
require, at a minimum, that the proposed transferee shall have entered into an agreement whereby
the transferee expressly assumes all of the Developer’s obligations under this Agreement. Any and
all instruments and other legal documents involved in effecting the transfer of any interest in this
Agreement or the Development Property governed by this Section 7.2 shall be in a form reasonably
satisfactory to the EDA.
(c) In the event the foregoing conditions are satisfied then the Redeveloper shall be
released from its obligation under this Agreement, as to the portion of the Redevelopment Property
that is transferred, assigned, or otherwise conveyed.
(d) After a Certificate of Completion has been issued, Developer may, with the prior
written approval of the EDA, sell or transfer all or any portion of the Minimum Improvements or
the Development Property to another party.
(e) The EDA agrees to the assignment of the TIF Note, once issued, to a lender to
allow the Developer to monetize the TIF Note; provided, however, that such lender shall first
execute and deliver to the Authority an investment letter in substantially the form executed by the
Developer.
Section 7.2. Termination of Agreement. Upon the occurrence of the Termination Date, the parties
agree to execute and record a document terminating this Agreement.
ARTICLE VIII
Events of Default
Section 8.1. Events of Default Defined. Each and every one of the following shall be an
Event of Default under this Agreement:
(a) Failure by the Developer to seek approval from the EDA, the City and other entities
necessary in order to construct the Minimum Improvements diligently and in good faith; provided
that if a Certificate of Completion is issued by the EDA, such failure shall no longer be an Event
of Default;
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(b) Failure of the Developer to pay real estate taxes or special assessments on the
Minimum Improvements or the Development Property as they become due;
(c) Failure by the Developer to commence and complete construction of the Minimum
Improvements pursuant to the terms, conditions and limitations of Article IV of this Agreement,
including the timing thereof, unless such failure is caused by an Unavoidable Delay or waived in
writing by the Developer and the EDA;
(d) Intentionally Omitted.
(e) There is a challenge to the Minimum Market Value in violation of Article VI of this
Agreement or the Assessment Agreement;
(f) If the Developer shall file a petition in bankruptcy, or shall make an assignment for
the benefit of its creditors (provided, however, that the parent of the Developer pledging its interest
in the Developer to a lender as security for a loan financing the construction of Minimum
Improvements, and an exercise of such pledge, shall not constitute an Event of Default), or shall
consent to the appointment of a receiver;
(g) Sale of the Minimum Improvements or the Development Property, or any portion
thereof, by the Developer in violation of Article VII of this Agreement; or
(h) Failure by either party to observe or perform any material covenant, condition,
obligation or agreement on its part to be observed or performed under this Agreement, including
but not limited to any action necessary for the establishment of the TIF District.
Section 8.2. Remedies on Default. Whenever any Event of Default referred to in
section 8.1 of this Agreement occurs, the non-defaulting party may take any one or more of the
following actions after providing 30 days written notice to the defaulting party of the Event of
Default, but only if the Event of Default has not been cured within said 30 days from the receipt
of Notice or, if the Event of Default is by its nature incurable within 30 days, the defaulting party
does not provide assurances to the non-defaulting party reasonably satisfactory to the non-
defaulting party that the Event of Default will be cured and will be cured as soon as reasonably
possible:
(a) Suspend its performance under this Agreement until it receives assurances from the
defaulting party, deemed adequate by the non-defaulting party, that the defaulting party will cure
its default and continue its performance under this Agreement;
(b) The EDA may enforce the Assessment Agreement;
(c) Prior to issuance of the Certificate of Completion, cancel and rescind or terminate
this Agreement;
(d) If there is a Sale in violation of Article VII of this Agreement, cancel or terminate
the Note;
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(e) If the default occurs after issuance of the Certificate of Completion, the EDA may
suspend payments under the Note; and
(f) Take whatever action, including legal or administrative action, which may appear
necessary or desirable to the non-defaulting party to collect any payments due under this
Agreement or to enforce performance and observance of any obligation, agreement, or covenant
of the defaulting party under this Agreement.
Section 8.3. Remedies after Certificate of Completion. The EDA may exercise its rights
under Section 8.2(e) only for the following Events of Default:
(a) the Developer fails to pay real estate taxes or special assessments on the Minimum
Improvements or the Development Property or any part thereof when due and the taxes or special
assessments have not been paid, or provision satisfactory to the EDA made for their payment,
within 45 days after written demand by the EDA to do so; or
(b) the Developer takes or permits an action prohibited by section 6.1 of this
Agreement; or
(c) the Developer transfers the Minimum Improvements or the Development Property,
or any part thereof, to an entity exempt from the payment of real estate taxes under State law; or
Section 8.4. No Remedy Exclusive. No remedy conferred herein or reserved to the parties
is intended to be exclusive of any other available remedy or remedies, but each and every remedy
shall be cumulative and shall be in addition to every other remedy given under this Agreement or
now or hereafter existing at law or in equity. No delay or omission to exercise any right or power
accruing upon any default shall impair any such right or power or shall be construed to be a waiver
thereof, but any such right and power may be exercised from time to time and as often as may be
deemed expedient. In order to entitle the EDA or the Developer to exercise any remedy reserved
to it, it shall not be necessary to give notice, other than such notice as may be required under this
Agreement.
Section 8.5. No Additional Waiver Implied by One Waiver. In the event any covenant or
agreement contained in this Agreement should be breached by either party and thereafter waived
by the other party, such waiver shall be limited to the particular breach so waived and shall not be
deemed to waive any other concurrent, previous or subsequent breach hereunder.
Section 8.6. Acceptance of Third-Party Cure. In the event that an Event of Default, or
potential Event of Default, is cured by a third-party lender which has loan to the Developer or an
affiliate thereof for the purposes of financing the construction of the Minimum Improvements, the
EDA shall accept such proffered cure on the same basis as if such cure had been effected by the
Developer.
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ARTICLE IX
Additional Provisions
Section 9.1. Conflict of Interests; Representatives Not Individually Liable. No member,
official, or employee of the EDA shall have any personal financial interest, direct or indirect, in
the Agreement, nor shall any such member, official, or employee participate in any decision
relating to the Agreement which affects his or her personal financial interests or the interests of
any corporation, partnership, or association in which he or she is, directly or indirectly, interested.
No member, official, or employee of the EDA shall be personally liable to the Developer, or any
successor in interest, in the event of any default or breach or for any amount which may become
due or on any obligations under the terms of this Agreement.
Section 9.2. Equal Employment Opportunity. The Developer, for itself and its successors
and assigns, agrees that during the construction of the Minimum Improvements provided for in
this Agreement, it will comply with all applicable equal employment and nondiscrimination laws
and regulations.
Section 9.3. Restrictions on Use. The Developer agrees that through the Termination
Date it will use the Minimum Improvements for only such uses as permitted under the City’s land
use regulations and in compliance with the City Approvals.
Section 9.4. Notices and Demands. Except as otherwise expressly provided in this
Agreement, any notice, demand, or other communication under the Agreement or any related
document by either party to the other shall be sufficiently given or delivered if it is dispatched by
registered or certified United States mail, postage prepaid, return receipt requested, or delivered
personally to:
(a) in the case of the Developer: Apartments Crystal Holdings, LLC
1934 38th Street
Minneapolis, MN 55407
Attn: Robb Lubenow
and with a copy to: Siegel Brill, P.A.
100 Washington Ave., Suite 1300
Minneapolis, MN 55401
Attn: Anthony Gleekel
(b) in the case of the EDA: Economic Development Authority
of the City of Crystal
4141 Douglas Drive N.
Crystal, MN 55422
Attn: Executive Director
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and with a copy to: Kennedy & Graven, Chartered
150 South Fifth Street, Suite 700
Minneapolis, MN 55402
Attn: Rachel G. Tierney
or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this section 9.4.
Section 9.5. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 9.6. Disclaimer of Relationships. The Developer acknowledges that nothing
contained in this Agreement nor any act by the EDA or the Developer shall be deemed or construed
by the Developer or by any third person to create any relationship of third-party beneficiary,
principal and agent, limited or general partner, or joint venture between the EDA and the
Developer.
Section 9.7. Amendment. This Agreement may be amended only by the written agreement
of the parties.
Section 9.8. Recording; Agreement Runs with the Land. This Agreement shall be
recorded among the County land records and the Developer agrees to pay for the cost of recording
same. This Agreement runs with the Development Property and shall bind the successors and
assigns of the EDA and the Developer.
Section 9.9. Release and Indemnification Covenants. a) Except for any negligent act of
the following named parties, the Developer hereby releases from and covenants and agrees that
the EDA, and its governing body members, officers, agents, servants, and employees (the
“Indemnified Parties”) shall not be liable for, and hereby agrees to indemnify and hold harmless
the Indemnified Parties against any loss or damage to property or any injury to or death of any
person occurring at or about or resulting from any defect in the Minimum Improvements.
b) The aforesaid indemnification shall not apply to willful misrepresentation or any
willful or wanton misconduct or negligence of the EDA.
c) Except for any negligent or willful act of the EDA, the Indemnified Parties shall
not be liable for any damage or injury to the persons or property of the Developer or its partners,
officers, agents, servants or employees or any other person who may be about the Minimum
Improvements or the Minimum Improvements due to any act of negligence of any person.
Section 9.10. Titles of Articles and Sections. Any titles of the several parts, articles, and
sections of this Agreement are inserted for convenience of reference only and shall be disregarded
in construing or interpreting any of its provisions.
Section 9.11. Governing Law; Venue. This Agreement shall be construed in accordance
with the laws of Minnesota. Any dispute arising from this Agreement shall be heard in the State
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or federal courts of Hennepin County, Minnesota, and all parties waive any objection to the
jurisdiction thereof, whether based on convenience or otherwise.
Section 9.12. Fees and Charges. The Developer agrees to pay the EDA for all fees or costs
for legal, financial advisory, engineering, planning or other staff time for preparation of the TIF
Plan and related documents and analysis, drafting or negotiating this Agreement and for reviewing
any plans regarding the Minimum Improvements submitted in satisfaction of this Agreement.
Section 9.13 Limited Liability. Notwithstanding anything to contrary provided in this
Agreement, it is specifically understood and agreed, such agreement being the primary
consideration for the execution of this Agreement by Developer, that (a) there should be
absolutely no personal liability on the part of any director, officer, manager, member, employee or
agent of Developer or EDA with respect to any terms, covenants and conditions in this Agreement;
(b) Developer and the EDA waive all claims, demands and causes of action against the other
parties’ directors, officers, managers, members, employees and agents in any Event of Default, by
either party, as the case may be, of any of the terms, covenants and conditions of this Agreement
to be performed by either party; and (c) Developer or the EDA, as the case may be, shall look
solely to the assets of the other party for the satisfaction of each and every remedy in the Event of
Default by any party, as the case may be, of any of the terms, covenants and conditions of this
Agreement such exculpation of liability to be absolute and without any exception whatsoever.
Section 9.14 Estoppel Certificates. Each party, respectively, agrees that at any time and
from time to time within 14 business days after receipt of a written request by the other party, to
execute, acknowledge and deliver to such party a statement in writing and in such form as will
enable it to be recorded in the proper office for the recordation of deeds and other instruments
certifying: (a) that this Agreement is unmodified and in full force and effect or, if there have been
modifications, that the same are in full force and effect as modified and identifying the
modifications; (b) that no party is in default under any provisions of this Agreement or, if there
has been a default, the nature of such default; and (c) as to any other matter that the requesting
party, a prospective purchaser or assignee or a prospective mortgagee or other lender shall
reasonably request. It is intended that any such statement may be relied upon by any person,
prospective mortgagee of, or assignee of any mortgage, upon such interest.
********************
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IN WITNESS WHEREOF, the EDA and the Developer have caused this Agreement to be
duly executed on or as of the date first above written.
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF CRYSTAL
By:
Its President
By:
Its Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF _________ )
The foregoing instrument as acknowledged before me this _____ day of ____________,
2026, by _______________________, the President of the Economic Development Authority of
the City of Crystal, a public body corporate and politic under the laws of Minnesota, on behalf of
the Economic Development Authority.
____________________________________
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF _________ )
The foregoing instrument as acknowledged before me this _____ day of ____________,
2026, by _______________________, the Executive Director of the Economic Development
Authority of the City of Crystal, a public body corporate and politic under the laws of Minnesota,
on behalf of the Economic Development Authority.
____________________________________
Notary Public
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Apartments Crystal Holdings, LLC,
a Minnesota limited liability company
By: Apartments Crystal, LLC
Its: Manager
By: Vishal Dutt
Its: Manager
STATE OF ___________ )
) ss.
COUNTY OF _________ )
The foregoing instrument was executed before me this _____ day of _______________,
2026, by Vishal Dutt, the Manager of Apartments Crystal, LLC, the Manager of Apartments
Crystal Holdings, LLC, a Minnesota limited liability company, on behalf of the company.
____________________________________
Notary Public
A-1
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EXHIBIT A TO
CONTRACT FOR PRIVATE DEVELOPMENT
LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY
Parcel 1:
Lot 1, Block 1, Crystal State Bank Addition, according to the recorded plat thereof, Hennepin
County, Minnesota, except that part described as follows:
All that part of the easterly 110 feet of Lot 1, Block 1, Crystal State Bank Addition, according to
the plat thereof on file and of record in the office of the County Recorder in and for Hennepin
County, Minnesota, which lies southerly of a line drawn parallel with and distant 42 feet northerly
of the following described line: Commencing at the northeast corner of the Southeast Quarter of
Southeast Quarter of Section 5, Township 118, Range 21; thence run westerly at an angle of 90
degrees 43 minutes 13 seconds (when measured from north to west) from the east line of said
Southeast Quarter; for a distance of 2600 feet and there terminating.
(Abstract Property)
Parcel 2:
Outlot A, Palmer Addition, according to the recorded plat thereof, Hennepin County, Minnesota.
(Abstract Property)
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EXHIBIT B TO
CONTRACT FOR PRIVATE DEVELOPMENT
LIST OF PRELIMINARY PLANS
The following constitute the Preliminary Plans of the Minimum Improvements:
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EXHIBIT C TO
CONTRACT FOR PRIVATE DEVELOPMENT
FORM OF
CERTIFICATE OF COMPLETION
WHEREAS, the Economic Development Authority of the City of Crystal, a public body
corporate and politic under the laws of Minnesota (the “EDA”), and Apartments Crystal Holdings,
LLC, a Minnesota limited liability company (the “Developer”), have entered into a certain
Contract for Private Development (the “Agreement”) dated the ____ day of ____________, 2026,
and recorded in the office of the County Recorder in Hennepin County, Minnesota, as Document
No. __________, which Agreement contained certain covenants and restrictions regarding
completion of the Minimum Improvements, as defined in the Agreement; and
WHEREAS, the Developer has performed said covenants and conditions in a manner
deemed sufficient by the EDA to permit the execution and recording of this certification.
NOW, THEREFORE, this is to certify that all construction of the Minimum Improvements
specified to be done and made by the Developer has been completed and the County Recorder in
Hennepin County, Minnesota, is hereby authorized to accept for recording and to record the filing
of this instrument, to be a conclusive determination of the satisfactory termination of the covenants
and conditions relating to completion of the Minimum Improvements.
Dated: _______________.
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF CRYSTAL
By:
Its President
By:
Its Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF _________ )
The foregoing instrument as acknowledged before me this _____ day of ____________,
202_, by _______________________, the President of the Economic Development Authority of
the City of Crystal, a public body corporate and politic under the laws of Minnesota, on behalf of
the Economic Development Authority.
____________________________________
Notary Public
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STATE OF MINNESOTA )
) ss.
COUNTY OF _________ )
The foregoing instrument as acknowledged before me this _____ day of ____________,
202_, by _______________________, the Executive Director of the Economic Development
Authority of the City of Crystal, a public body corporate and politic under the laws of Minnesota,
on behalf of the Economic Development Authority.
____________________________________
Notary Public
This Instrument Drafted By:
KENNEDY & GRAVEN, CHARTERED
150 South Fifth Street
Suite 700
Minneapolis, MN 55402
(612) 337-9300
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EXHIBIT D TO
CONTRACT FOR PRIVATE DEVELOPMENT
FORM OF AUTHORIZING RESOLUTION WITH NOTE
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
RESOLUTION NO. ______
RESOLUTION APPROVING THE ISSUANCE OF, AND
PROVIDING THE FORM, TERMS, COVENANTS AND
DIRECTIONS FOR THE ISSUANCE OF ITS TAXABLE TAX
INCREMENT REVENUE NOTE, SERIES 202__ IN AN
AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
$3,673,000
BE IT RESOLVED BY the Economic Development Authority of the City of Crystal (the
“EDA”), as follows:
Section 1. Authorization; Award of Sale.
1.01. Authorization. The EDA has heretofore approved the establishment of Tax
Increment Financing District No. 6 (Wells Fargo) (the “TIF District”), located in Redevelopment
Project Number 1 (the “Redevelopment Project”), and has adopted a tax increment financing plan
for the purpose of financing certain improvements within the Redevelopment Project.
Pursuant to Minnesota Statutes, Section 469.178, the EDA is authorized to issue and sell
its bonds for the purpose of financing a portion of the public development costs of the Minimum
Improvements and Development Property in the Redevelopment Project. The bonds are payable
from all or any portion of revenues derived from the Minimum Improvements and the
Development Property (each as defined in the Agreement (defined below)) in the TIF District and
pledged to the payment of the bonds. The EDA hereby finds and determines that it is in the best
interests of Crystal that it issue and sell its taxable Tax Increment Revenue Note, Series 202__ (the
“Note”), in the aggregate principal amount up to $3,673,000, for the purpose of financing certain
public costs of the Redevelopment Project.
1.02. Agreement Approved; Issuance, Sale and Terms of the Note. The EDA has
previously approved the Contract for Private Development (the “Agreement”) between the EDA
and Apartments Crystal Holdings, LLC, a limited liability company under the laws of Minnesota
(the “Owner”), and authorized the President and Executive Director to execute the Agreement.
Pursuant to the Agreement, the Note will be issued to the Owner. The Note will be dated as of the
date of delivery and will bear interest at the rate of [the lesser of (i) 6.25% per annum; (ii) the
actual rate of interest paid if the Developer finances the Note separately from the construction loan
or first mortgage; or (iii) the actual rate of interest paid by the Developer on the construction
financing for the Minimum Improvements. In exchange for the EDA’s issuance of the Note to the
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Owner, the Owner will pay certain costs related to the Minimum Improvements (the Qualifying
Costs, as defined in the Agreement) pursuant to Section 3.2 of the Agreement. The Note will be
delivered in the principal amount up to $3,673,000 for reimbursement of the Owner’s costs in
accordance with the terms of Sections 3.2 and 3.3 of the Agreement.
Section 2. Form of Note. The Note will be in substantially the following form, with
the blanks to be properly filled in and the principal amount and payment schedule adjusted as of
the date of issue:
UNITED STATE OF AMERICA
STATE OF MINNESOTA
HENNEPIN COUNTY
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
No. R-1 $__________
TAXABLE TAX INCREMENT REVENUE NOTE
SERIES 202__
Date
Rate of Original Issue
lesser of (i) 6.25% per annum; (ii) the actual rate of interest paid if the Developer finances the Note
separately from the construction loan or first mortgage; or (iii) the actual rate of interest paid by
the Developer on the permanent financing for the Minimum Improvements
The Economic Development Authority of the City of Crystal (the “EDA”), for value
received, certifies that it is indebted and hereby promises to pay to Apartments Crystal Holdings,
LLC, a Minnesota limited liability company, or registered assigns (the “Owner”), the principal
sum of $3,673,000 with interest thereon at the rate specified below, as and to the extent set forth
herein.
1. Payments. Principal and interest payments (“Payments”) will be paid on August 1,
2028, and each February 1 and August 1 thereafter until the earlier of payment in full or February 1,
2038 (“Payment Dates”), in the amounts and from the sources set forth in Section 3 herein.
Payments are payable by mail to the address of the Owner or any other address as the
Owner may designate upon 30 days written notice to the EDA. Payments on this Note are payable
in any coin or currency of the United States of America which, on the Payment Date, is legal tender
for the payment of public and private debts.
2. Interest. Interest shall be simple, non-compounding interest at ___% per annum
which is the lesser of (i) 6.25% per annum; (ii) the actual rate of interest paid if the Developer
finances the Note separately from the construction loan or first mortgage; or (iii) the actual rate of
interest paid by the Developer on the permanent financing for the Minimum Improvements.
Interest shall be computed on the basis of a 360-day year consisting of 12 30-day months.
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3. Available Tax Increment. Payments on this Note are payable on each Payment
Date in the amount of and solely payable from “Available Tax Increment,” which will mean, on
each Payment Date, 90 percent of the Tax Increment attributable to the Development Property and
Minimum Improvements (as defined in the Agreement) and paid to the EDA by Hennepin County,
Minnesota in the six months preceding the Payment Date, all as the terms are defined in the
Contract for Private Development between the EDA and Owner dated as of ______________,
2026 (the “Agreement”). Available Tax Increment will not include any Tax Increment if, as of
any Payment Date, there is an uncured Event of Default by the Owner under the Agreement.
The EDA will have no obligation to pay principal or interest on this Note on each Payment
Date from any source other than Available Tax Increment, and the failure of the EDA to pay the
entire amount of principal and interest on this Note on any Payment Date will not constitute a
default hereunder as long as the EDA pays principal and interest to the extent of Available Tax
Increment. If on any Payment Date there is insufficient Available Tax Increment to pay accrued
and unpaid interest on this Note on such date, the amount of such deficiency shall be deferred and
paid, without interest thereon, on the next Payment Date on which the EDA has Available Tax
Increment in excess of the amount necessary to pay the accrued and unpaid interest on this Note
on such subsequent Payment Date. The EDA will have no obligation to pay any unpaid balance
of principal or interest that may remain after the Final Payment Date of February 1, 2038.
4. Optional Prepayment. The principal sum and accrued interest payable under this
Note is pre-payable in whole or in part at any time by the EDA without premium or penalty. No
partial prepayment will affect the amount or timing of any other regular payment otherwise
required to be made under this Note.
5. Suspension of Payment. At the EDA’s option, the EDA’s obligation to make any
payments under this Note will be suspended upon the occurrence of an Event of Default on the
part of the Developer as defined in Section 8.1 of the Agreement, but only if the Event of Default
has not been cured in accordance with Section 8.2 of the Agreement. The EDA may also suspend
payments under this Note in accordance with Section 6.3 of the Agreement.
6. Nature of Obligation. This Note is a single note in the total principal amount of
$3,673,000 issued to aid in financing certain public costs of a Redevelopment Project undertaken
by the EDA pursuant to Minnesota Statutes, Sections 469.090 through 469.108, as amended, and
is issued pursuant to an authorizing resolution (the “Resolution”) duly adopted by the EDA on
______________, 2026, pursuant to and in full conformity with the Constitution and laws of the
State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1794, as amended.
This Note is a limited obligation of the EDA which is payable solely from Available Tax Increment
pledged to the payment hereof under the Resolution. This Note will not be deemed to constitute a
general obligation of the State of Minnesota or any political subdivision thereof, including, without
limitation, the Economic Development Authority of the City of Crystal or the City of Crystal.
Neither the State of Minnesota, nor any political subdivision thereof will be obligated to pay the
principal of or interest on this Note or other costs incident hereto except out of Available Tax
Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or
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any political subdivision thereof is pledged to the payment of the principal of and interest on this
Note or other costs incident hereto.
7. Estimated Tax Increment Payments. Any estimates of Tax Increment prepared by
the EDA or its municipal advisors in connection with the TIF District or the Agreement are for the
benefit of the EDA, and are not intended as representations on which the Owner may rely.
THE EDA MAKES NO REPRESENTATION OR WARRANTY THAT THE
AVAILABLE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE PRINCIPAL OF OR
INTEREST ON THIS NOTE.
8. Registration and Transfer; Assignment. As provided in the Resolution, and subject
to certain limitations set forth herein, this Note is issuable only as a fully registered note without
coupons. This Note is transferable upon the books of the EDA kept for that purpose at the principal
office of the EDA’s Executive Director as Registrar, by the Owner hereof in person or by the
Owner’s attorney duly authorized in writing, upon surrender of this Note together with a written
instrument of transfer satisfactory to the EDA, duly executed by the Owner. Upon the transfer or
exchange and the payment by the Owner of any tax, fee, or governmental charge required to be
paid by the EDA with respect to the transfer or exchange, there will be issued in the name of the
transferee a new Note of the same aggregate principal amount and interest rate and maturing on
the same dates.
This Note may be transferred without the approval of the EDA; provided that this Note will
not be transferred to any person other than an Affiliate, or other related entity, of the Owner unless
the EDA has been provided with an investment letter in a form substantially similar to the
investment letter submitted by the Owner or a certificate of the transferor, in a form satisfactory to
the EDA, that the transfer is exempt from registration and prospectus delivery requirements of
federal and applicable state securities laws. This Note may be assigned with the consent of the
EDA, which will not be unreasonably withheld or delayed. Notwithstanding anything to the
contrary in this Note, in no event will a lender providing funds to the Developer and taking an
assignment of the Note as security for such funds be required to sign an investment letter at either
the time of execution of an assignment or transfer of the Note as a result of the assignment.
This Note is subject to the Lookback provisions of section 3.5 of the Agreement.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required
by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be
performed in order to make this Note a valid and binding limited obligation of the EDA according
to its terms, have been done, do exist, have happened, and have been performed in due form, time
and manner as so required.
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IN WITNESS WHEREOF, the board of commissioners of the Economic Development
Authority of the City of Crystal, has caused this Note to be executed with the manual signatures
of its President and Executive Director, all as of the Date of Original Issue specified above.
ECONOMIC DEVELOPMENT
AUTHORITY OF THE CITY OF
CRYSTAL, MINNESOTA
President Executive Director
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REGISTRATION PROVISIONS
The ownership of the unpaid balance of the within Note is registered in the bond register
of the EDA’s Executive Director, in the name of the person last listed below.
Date of Registration Registered Owner Signature of Executive Director
Apartments Crystal Holdings, LLC
1834 38th Street
Minneapolis, MN 55407
Attn: Robb Lubenow
Federal Tax ID #[•]
[End of Form of Note]
Section 3. Terms, Execution and Delivery.
3.01. Denomination, Payment. The Note will be issued as a single typewritten note
numbered R-1.
The Note will be issuable only in fully registered form. Principal and interest of the Note
will be payable by check or draft issued by the Registrar described herein.
3.02. Dates. Principal and interest of the Note will be payable by mail to the owner of
record thereof as of the close of business on the fifteenth day of the month preceding the Payment
Date, whether or not the day is a business day.
3.03. Registration. The EDA hereby appoints the Executive Director to perform the
functions of registrar, transfer agent and paying agent (the “Registrar”). The effect of registration
and the rights and duties of the EDA and the Registrar with respect thereto will be as follows:
(a) Register. The Registrar will keep at their office a bond register in which the
Registrar will provide for the registration of ownership of the Note and the registration of transfers
and exchanges of the Note.
(b) Transfer of Note. Upon surrender for transfer of the Note duly endorsed by the
registered owner thereof or accompanied by a written instrument of transfer, in form reasonably
satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly
authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the
name of the designated transferee or transferees, a new Note of a like aggregate principal amount,
interest rate and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note
will not be transferred to any person other than an Affiliate, or other related entity, of the Owner
unless the EDA has been provided with an investment letter in a form substantially similar to the
investment letter submitted by the Owner or a certificate of the transferor, in a form satisfactory to
the EDA, that the transfer is exempt from registration and prospectus delivery requirements of
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federal and applicable state securities laws. The Registrar may close the books for registration of
any transfer after the fifteenth day of the month preceding each Payment Date and until the
Payment Date.
(c) Cancellation. The Note surrendered upon any transfer will be promptly cancelled
by the Registrar and thereafter disposed of as directed by the EDA.
(d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar
for transfer, the Registrar may refuse to transfer the same until they are satisfied that the
endorsement on the Note or separate instrument of transfer is legally authorized. The Registrar
will incur no liability for their refusal, in good faith, to make transfers which they, in their
judgment, deems improper or unauthorized.
(e) Persons Deemed Owners. The EDA and the Registrar may treat the person in
whose name the Note is at any time registered in the bond register as the absolute owner of the
Note, whether the Note is overdue or not, for the purpose of receiving payment of, or on account
of, the principal of and interest on the Note and for all other purposes, and all the payments so
made to any registered owner or upon the owner’s order will be valid and effectual to satisfy and
discharge the liability of the EDA upon the Note to the extent of the sum or sums so paid.
(f) Taxes, Fees and Charges. For every transfer or exchange of the Note, the Registrar
may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee,
or other governmental charge required to be paid with respect to the transfer or exchange.
(g) Mutilated, Lost, Stolen or Destroyed Note. In case the Note becomes mutilated or
is lost, stolen, or destroyed, the Registrar will deliver a new Note of like amount, interest rate,
maturity dates and tenor in exchange and substitution for and upon cancellation of the mutilated
Note or in lieu of and in substitution for the Note lost, stolen, or destroyed, upon the payment of
the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the
Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that the
Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the
Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in
which both the EDA and the Registrar will be named as obligees. The Note so surrendered to the
Registrar will be cancelled and evidence of the cancellation will be given to the EDA. If the
mutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in
accordance with its terms, it will not be necessary to issue a new Note prior to payment.
3.04. Preparation and Delivery. The Note will be prepared under the direction of the
Executive Director and will be executed on behalf of the EDA by the signatures of its President
and Executive Director. In case any officer whose signature appears on the Note ceases to be the
officer before the delivery of the Note, the signature will nevertheless be valid and sufficient for
all purposes, the same as if the officer had remained in office until delivery. When the Note has
been so executed, it will be delivered by the EDA to the Owner following the delivery of the
necessary items delineated in Section 3.3 of the Agreement.
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Section 4. Security Provisions.
4.01. Pledge. The EDA hereby pledges to the payment of the principal and interest of
the Note all Available Tax Increment as defined in the Note. Available Tax Increment will be
applied to payment of accrued interest first, then the principal of the Note in accordance with the
terms of the form of Note set forth in Section 2 of this resolution.
4.02. Bond Fund. Until the date the Note is no longer outstanding and no principal
thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains
unpaid, the EDA will maintain a separate and special “Bond Fund” to be used for no purpose other
than the payment of the principal of and interest on the Note. The EDA irrevocably agrees to
appropriate to the Bond Fund in each year Available Tax Increment. Any Available Tax Increment
remaining in the Bond Fund will be transferred to the EDA’s account for the TIF District upon the
payment of all principal and interest to be paid with respect to the Note.
Section 5. Certification of Proceedings.
5.01. Certification of Proceedings. The officers of the EDA are hereby authorized and
directed to prepare and furnish to the Owner of the Note certified copies of all proceedings and
records of the EDA, and the other affidavits, certificates, and information as may be required to
show the facts relating to the legality and marketability of the Note as the same appear from the
books and records under their custody and control or as otherwise known to them, and all the
certified copies, certificates, and affidavits, including any heretofore furnished, will be deemed
representations of the City as to the facts recited therein.
Section 6. Effective Date. This resolution will be effective upon execution by the President
and Executive Director following authorization by the board of commissioners of the Economic
Development Authority of the City of Crystal.
Adopted by the Economic Development Authority of the City of Crystal, this ____ day of
________, 202___.
President
Executive Director
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EXHIBIT E TO
CONTRACT FOR PRIVATE DEVELOPMENT
FORM OF INVESTMENT LETTER
To the Economic Development Authority of the City of Crystal (the “EDA”)
Attention: Executive Director
Dated: __________________, 202__
Re: $____________ Tax Increment Revenue Note (Apartments Crystal Holdings, LLC
Apartments Owner Project)
The undersigned, as Purchaser of $3,673,000 in principal amount of the above-captioned
Tax Increment Revenue Note [Apartments Crystal Holdings, LLC Apartments Owner Project] (the
“Note”), approved by the Board of Commissioners of the Economic Development Authority of
the City of Crystal on ______________, 202__, hereby represents to you and to Kennedy &
Graven, Chartered, Minneapolis, Minnesota, as legal counsel to the EDA, as follows:
1. We understand and acknowledge that the Note is delivered to the Purchaser on this
date pursuant to the Contract for Private Development by and between the EDA and the Purchaser
dated __________________, 2026 (the “Agreement”).
2. The Note is payable solely from Available Tax Increment pledged to the Note, as
defined therein.
3. We have sufficient knowledge and experience in financial and business matters,
including purchase and ownership of municipal obligations, to be able to evaluate the risks and
merits of the investment represented by the purchase of the above-stated principal amount of the
Note.
4. We acknowledge that no offering statement, prospectus, offering circular or other
comprehensive offering document or disclosure containing material information with respect to
the EDA and the Note has been issued or prepared by the EDA, and that, in due diligence, we have
made our own inquiry and analysis with respect to the EDA, the Note and the security therefor,
and other material factors affecting the security and payment of the Note.
5. We acknowledge that we have either been supplied with or have access to
information, including financial statements and other financial information, to which a reasonable
investor would attach significance in making investment decisions, and we have had the
opportunity to ask questions and receive answers from knowledgeable individuals concerning the
EDA, the Note and the security therefor, and that as reasonable investors we have been able to
make our decision to purchase the above-stated principal amount of the Note.
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6. We have been informed that the Note (i) is not being registered or otherwise
qualified for sale under the “Blue Sky” laws and regulations of any state, or under federal securities
laws or regulations, (ii) will not be listed on any stock or other securities exchange, and (iii) will
carry no rating from any rating service.
7. We acknowledge that the EDA and Kennedy & Graven, Chartered, as legal counsel
to the EDA, have not made any representations or warranties as to the status of payments on the
Note for the purpose of federal or state income taxation.
8. We represent to you that we are purchasing the Note for our own account and not
for resale or other distribution thereof, except to the extent otherwise provided in the Note or as
otherwise approved in writing by the EDA.
9. All capitalized terms used herein have the meaning provided in the Agreement
unless the context clearly requires otherwise.
10. The Purchaser’s federal tax identification number is __________________.
11. We acknowledge receipt of the Note on the date hereof.
IN WITNESS WHEREOF, the undersigned has executed this Investment Letter as of the
date and year first written above.
Apartments Crystal Holdings, LLC,
a Minnesota limited liability company
By: Apartments Crystal, LLC
Its: Manager
By: Vishal Dutt
Its: Manager
STATE OF )
) ss.
COUNTY OF___________ )
The foregoing instrument was executed before me this _____ day of _______________,
202__, by Vishal Dutt, the Manager of Apartments Crystal, LLC, the Manager of Apartments
Crystal Holdings, LLC, a Minnesota limited liability company, on behalf of the company.
____________________________________
Notary Public
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EXHIBIT F TO
CONTRACT FOR PRIVATE DEVELOPMENT
PROFORMA, LOOKBACK AND TOTAL DEVELOPMENT COSTS
[•]
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EXHIBIT G TO
CONTRACT FOR PRIVATE DEVELOPMENT
FORM OF
ASSESSMENT AGREEMENT
and
ASSESSOR’S CERTIFICATION
By and among
THE ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
and
APARTMENTS CRYSTAL, LLC
and
COUNTY ASSESSOR FOR HENNEPIN COUNTY, MINNESOTA
This Document was drafted by:
KENNEDY & GRAVEN, Chartered
150 South Fifth Street Suite 700
Minneapolis, MN 55402
(612) 337-9300
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THIS ASSESSMENT AGREEMENT, dated as of this ___ day of __________, 2026, by and
between the Economic Development Authority of the City of Crystal, a public body corporate and
politic under the laws of Minnesota (the “EDA”), and Apartments Crystal, LLC, a limited liability
company under the laws of Minnesota (the “Owner”).
WITNESSETH:
WHEREAS, on or before the date hereof, the EDA and the Owner have entered into a
Contract for Private Development (the “Agreement”) concerning the property legally described on
Exhibit A hereto, (the “Development Property”); and
WHEREAS, pursuant to the Agreement, the Owner will construct a project consisting of
one five story building, including approximately 178 market rate rental housing units, 186
underground parking stalls, 76 surface parking stalls, upgraded pedestrian ramps and signals to
meet ADA compliance, sidewalks, lighting, and other improvements as more fully set out in the
Agreement (the “Minimum Improvements”); and
WHEREAS, the EDA and the Owner desire to establish a minimum market value for the
Development Property and the Minimum Improvements to be constructed thereon, pursuant to
Minnesota Statutes, section 469.177, Subd. 8; and
WHEREAS, the EDA and the County Assessor for Hennepin County, Minnesota have
reviewed the Plans for the Minimum Improvements which the Owner has agreed to construct on
the Development Property pursuant to the Agreement.
NOW, THEREFORE, the parties to this Assessment Agreement, in consideration of the
promises, covenants and agreements made herein and in the Agreement by each to the other, do
hereby agree as follows:
1. The Minimum Market Value for the Development Property with the Minimum
Improvements shall be $40,050,000. The parties agree that this Minimum Market Value shall be
placed against the Development Property as of January 2, 2030, for taxes payable beginning in
2031 notwithstanding any failure to start or complete construction of such Minimum
Improvements by that date.
2. The Minimum Market Value herein established shall be of no further force and
effect and this Assessment Agreement shall terminate on the Termination Date. The Termination
Date has the meaning given to it under the Agreement.
3. This Assessment Agreement shall be promptly recorded by the Owner with a copy
of Minnesota Statutes, section 469.177, Subd. 8 set forth in Exhibit B hereto. The Owner shall
pay all costs of recording this Assessment Agreement.
4. Neither the preambles nor the provisions of this Assessment Agreement are
intended to, nor shall they be construed as, modifying the terms of the Agreement. Unless the
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context indicates clearly to the contrary, the terms used in this Assessment Agreement shall have
the same meaning as the terms used in the Agreement.
5. This Assessment Agreement shall inure to the benefit of and be binding upon the
parties and their successors and assigns.
6. Each of the parties has authority to enter into this Assessment Agreement and to
take all actions required of it and has taken all actions necessary to authorize the execution and
delivery of this Assessment Agreement.
7. In the event any provision of this Assessment Agreement shall be held invalid or
unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof.
8. The parties hereto agree that they will, from time to time, execute, acknowledge
and deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments
and modifications hereto, and such further instruments as may reasonably be required for
correcting any inadequate, or incorrect, or amended description of the Development Property, or
for carrying out the expressed intention of this Assessment Agreement.
9. Except as provided in Section 8 hereof, this Assessment Agreement may not be
amended nor any of its terms modified except by a writing authorized and executed by all parties
hereto.
10. This Assessment Agreement may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the
same instrument.
11. This Assessment Agreement shall be governed by and construed in accordance with
the laws of Minnesota.
*********
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ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF CRYSTAL
By:
________________, President
And by:
___________________, Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF ___________ )
The foregoing instrument as acknowledged before me this ____ day of ____________,
2026, by _____________, the President of the Economic Development Authority of the City of
Crystal , a public body corporate and politic under the laws of Minnesota, on behalf of the
Economic Development Authority.
____________________________________
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF ___________ )
The foregoing instrument as acknowledged before me this ____ day of ____________,
2026, by _____________, the Executive Director of the Economic Development Authority of the
City of Crystal, a public body corporate and politic under the laws of Minnesota, on behalf of the
Economic Development Authority.
____________________________________
Notary Public
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APARTMENTS CRYSTAL, LLC
___________________________
STATE OF __________ )
) SS.
COUNTY OF ________ )
The foregoing instrument was executed before me this _____ day of _______________,
2026, by Vishal Dutt, the Manager of APARTMENTS CRYSTAL, LLC, , on behalf of the
company,
____________________________________
Notary Public
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CERTIFICATION BY ASSESSOR
The undersigned, having reviewed the plans and specifications for the improvements to be
constructed and the market value assigned to the land upon which the improvements are to be
constructed, and being of the opinion that the minimum market value contained in the foregoing
Agreement appears reasonable, hereby certify as follows: The undersigned Assessor being legally
responsible for the assessment of the described property, hereby certifies that the market value
assigned to such land and improvements at the property, legally described on Exhibit A attached
hereto, shall be not less than Forty Million and Fifty Thousand Dollars ($40,050,000) as of January
2nd, 2029, for taxes payable beginning in 2030, until termination of this Agreement.
__________________________________________
County Assessor for
Hennepin County, Minnesota
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ______ day of __________,
2026, by __________________________, the County Assessor, Hennepin County, Minnesota.
__________________________________________
Notary Public
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EXHIBIT A
TO ASSESSMENT AGREEMENT
The Development Property is legally described as follows:
[Parcel 1:
Lot 1, Block 1, Crystal State Bank Addition, according to the recorded plat thereof, Hennepin
County, Minnesota, except that part described as follows:
All that part of the easterly 110 feet of Lot 1, Block 1, Crystal State Bank Addition, according to
the plat thereof on file and of record in the office of the County Recorder in and for Hennepin
County, Minnesota, which lies southerly of a line drawn parallel with and distant 42 feet northerly
of the following described line: Commencing at the northeast corner of the Southeast Quarter of
Southeast Quarter of Section 5, Township 118, Range 21; thence run westerly at an angle of 90
degrees 43 minutes 13 seconds (when measured from north to west) from the east line of said
Southeast Quarter; for a distance of 2600 feet and there terminating.
(Abstract Property)
Parcel 2:
Outlot A, Palmer Addition, according to the recorded plat thereof, Hennepin County, Minnesota.
(Abstract Property)]*
* NTD: Update Legal if Assessment Agreement will be recorded after Plat.
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EXHIBIT B
TO ASSESSMENT AGREEMENT
Section 469.177, subd. 8. Assessment Agreements. An authority may enter into a written
assessment agreement with any person establishing a minimum market value of land, existing
improvements, or improvements to be constructed in a district, if the property is owned or will be
owned by the person. The minimum market value established by an assessment agreement may be
fixed, or increase or decrease in later years from the initial minimum market value. If an agreement
is fully executed before July 1 of an assessment year, the market value as provided under the
agreement must be used by the county or local assessor as the taxable market value of the property
for that assessment. Agreements executed on or after July 1 of an assessment year become effective
for assessment purposes in the following assessment year. An assessment agreement terminates
on the earliest of the date on which conditions in the assessment agreement for termination are
satisfied, the termination date specified in the agreement, or the date when tax increment is no
longer paid to the authority under section 469.176, subdivision 1. The assessment agreement shall
be presented to the county assessor, or city assessor having the powers of the county assessor, of
the jurisdiction in which the tax increment financing district and the property that is the subject of
the agreement is located. The assessor shall review the plans and specifications for the
improvements to be constructed, review the market value previously assigned to the land upon
which the improvements are to be constructed and, so long as the minimum market value contained
in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate,
shall execute the following certification upon the agreement:
The undersigned assessor, being legally responsible for the assessment of the above
described property, certifies that the market values assigned to the land and
improvements are reasonable
The assessment agreement shall be filed for record and recorded in the office of the county recorder
or the registrar of titles of each county where the real estate or any part thereof is situated. After
the agreement becomes effective for assessment purposes, the assessor shall value the property
under section 273.11, except that the market value assigned shall not be less than the minimum
market value established by the assessment agreement. The assessor may assign a market value to
the property in excess of the minimum market value established by the assessment agreement. The
owner of the property may seek, through the exercise of administrative and legal remedies, a
reduction in market value for property tax purposes, but no city assessor, county assessor, county
auditor, board of review, board of equalization, commissioner of revenue, or court of this state
shall grant a reduction of the market value below the minimum market value established by the
assessment agreement during the term of the agreement filed of record regardless of actual market
values which may result from incomplete construction of improvements, destruction, or
diminution by any cause, insured or uninsured, except in the case of acquisition or reacquisition
of the property by a public entity. Recording an assessment agreement constitutes notice of the
agreement to anyone who acquires any interest in the land or improvements that is subject to the
assessment agreement, and the agreement is binding upon them.