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HomeMy WebLinkAboutJune 18, 2001 Agenda Packet PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING Monday, June 18, 2001 (5:30 p.m.) Fire Station City Council Chambers 1) Call to Order and Pledge of Allegiance 2) Approval of Minutes - None 3) Consent Agenda. Those items on the EDA Agenda which are considered routine and non- controversial are included as part of the Consent Agenda. Unless the President, a Commissioner or member of the public specifically requests. that an item on the Consent Agenda be removed and considered separately, items on the Consent Agenda are considered under one motion, second and a roll call vote. Any item removed from the Consent Agenda shall be placed on the EDA agenda as a separate categOlY. NONE. 4) Items Removed from Consent Agenda. 5) Presentations: NONE. 6) Public Hearings: NONE. ~ )<:- fr<-" 8) New Business ~ '() ~ -:-at Election of Officers (President, Vice President, Secretary, Treasurer) , ~~ ~1.lJJ) Approval of Treasurer's Bond \S'.",,,-.-::\k~) Appointment of Official Bank \J~/JP l)-D \)\id1:~ d) Approval of Check-Writing Signor in Addition to Treasurer. ?rt1M~{')1l.'~':\rl Consider Approval of Proposal of Mackin Library Media to Acquire and Develop ~.>{" \{.\ d," ~'j', a 4.1 Acre Parcel in Waterfront Passage Business Park. ~~I~ 7) Old Business -&t- Distribution of Approved Economic Development Authority Bylaws (attached) 9) bt+-1 H (cnJ~ [" ~) rM~ 9~ ~ N~'.t I-MJjE *- "2f;....8~kO.. rm.::!.r-/ b!:~--. ,ro L" ,.jut, I:\ADVBODYS\EDA\OlgeneraJ\agd061801.DOC "J.) \} ~tt/'" ~ bI'" ,,/" P.;t/'-'7- 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. ~9~r447-4230 / Fax ( 2) 447-424's AN EQUAL OPPORTUNITY EMPLOYER 10) IAdjournment, 7:00 p.m. ~~ ~\'\ . BYLAWS OF PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY Amended January 3, 1995 Amended January 2, 1996 Amended February 20, 1996 Amended October 21, 1996 Amended December 21, 1998 Amended April 16, 2001 ARTICLE I - NAME AND PURPOSE The Prior Lake Economic Development Authority is a public body politic and a political subdivision of the State of Minnesota. The affairs of the Authority shall include, but not be limited to, promoting the growth, development and redevelopment of commercial industrial concerns in Prior Lake. The primary purpose of the EDA is to serve as an Economic Development Authority (EDA) pursuant to Minnesota Statutes, Section 469.090 to 469.108. The EDA shall be governed by all requirements of said statute, the Enabling Resolution passed by the Prior Lake City Council and any amendments to the Enabling Resolution which may be enacted by the City Council in the future. ARTICLE II - OFFICES AND BOUNDARIES The principal office of the EDA shall be in the City Hall of the City of Prior Lake, 16200 Eagle Creek Avenue, County of Scott, State of Minnesota. The EDA may also have offices at such other places as the Commissioners of the EDA may from time to time appoint, or as the business of the EDA may require. The territory in which operations of the EDA are principally to be conducted consists of the City of Prior Lake in Scott County in the State of Minnesota. ARTICLE III - BOARD OF COMMISSIONERS The management of all of the affairs, property and business of the EDA shall be vested in a five (5) member Board of Commissioners. The members of the City Council shall serve as the Board of Commissioners. A vacancy is created in the membership of the EDA when a City Council member of the EDA ends council membership. A vacancy for this or another reason must be filled for the balance of the unexpired term, in the manner in which the original appointment was made. The City Council may set the term of the commissioners who are members of the City Council to coincide with their term of office as members of the City Council. Minn. Stat. 469.095, subd. 2(f). All vacancies in the Board of Commissioners of the EDA, whether caused by resignation, termination of Councilmembers, death or otherwise, shall be filled by the successor to the Council position. The Board of Commissioners may exercise all powers of the EDA and do all such lawful acts and things as are authorized pursuant to Minnesota State Statutes, the Enabling Resolution or pursuant to these Bylaws. bylaws rev 4-01 clean - 1 - A commissioner, including the president, shall be paid for attending each regular or special meeting of the EDA in an amount to be determined by the City Council. In addition to receiving pay for meetings, the commissioners may be reimbursed for actual expenses incurred in doing official business of the EDA. All money paid for compensation or reimbursement must be paid out of the EDA's budget. (Minn. Stat. 469.095, subd. 4). ARTICLE IV . MEETINGS The EDA shall meet monthly as determined by the EDA at the City Council Chambers at Fire Station 1, 16776 Fish Point Road. At least seven (7) days written notice of such meetings shall be given to the Commissioners. Meetings will be held at 5:30pm before the City Council meeting. Notice of a regular meeting shall comply with the requirements of the Minnesota Open Meeting Law. Three Commissioners shall constitute-a quorum for the purpose of conducting business. Less than a quorum may, however, adjourn any meeting, which may be held on a subsequent date and time certain without further notice, provided a quorum is present at such deferred meeting. Commissioners are to notify the staff prior to the meeting if they are unable to attend. ARTICLE V - OFFICERS. DUTIES AND RULES The EDA shall elect a president, a vice-president, a treasurer, a secretary, and an assistant treasurer. The EDA shall elect the president, treasurer, and secretary annually. A commissioner must not serve as president and vice-president at the same time. The other offices may be held by the same commissioner. The offices of secretary and assistant treasurer need not be held by a commissioner. The officers have the usual duties and powers of their offices. They may be given other duties and powers by the EDA. The treasurer shall receive and is responsible for EDA money, is responsible for the acts of the assistant treasurer, shall disburse EDA money by check only, shall keep an account of the source of all receipts, and the nature, purpose and amount of all disbursements, and shall file the EDA's detailed financial statement with its secretary at least once a year at times set by the EDA. The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or disabled. The treasurer shall give bond to the state conditioned for the faithful discharge of official duties. The bond must be approved as to form and surety by the EDA and filed with the secretary. The bond must be for twice the amount of money likely to be on hand at anyone time, as determined at least annually by the EDA provided that the bond must not exceed $300,000. (Minn. Stat. 469.096) ARTICLE VI. FINANCE AND ADMINISTRATION EDA money is public money. The monies of the EDA shall be deposited in the name of the EDA in such bank or banks as the Board of Commissioners shall designate. The EDA check must be signed by the treasurer and one other officer named by the EDA in a resolution. The check must state the name of the payee and the nature of the claim that the check is issued for. (Minn. Stat. 469.096) bylaws rev 4-0 I clean - 2 - Tr I' The nature, number and qualification of the staff required by the EDA to conduct its business according to these Bylaws shall be annually determined by the Board of Commissioners. Any agreement shall set forth in reasonable detail the nature of the EDA services to be performed, the cost basis for such services and the payment to be made by the EDA. The books and records of the EDA shall be kept at the EDA office in the City of Prior Lake, Minnesota. The EDA's detailed financial statement must show all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets, and its outstanding liabilities in a form required for the City's financial statements. The EDA shall examine the statement together with the treasurer's vouchers. If the EDA finds that the statement and vouchers are correct, it shall approve them by resolution and enter the resolution in its records. ARTICLE VII- DEPOSITS, DEFAULT, COLLATERAL Every two years the EDA shall name national or state banks within the state as depositories. Before acting as a depository, a named bank shall give the EDA a bond approved as to form and surety by the EDA. The bond must be conditioned for the safekeeping and prompt repayment of deposits. The amount of bond must be at least equal to the maximum sums expected to be deposited at anyone time. When EDA funds are deposited by the treasurer in a bonded depository, the treasurer and the surety on the treasurer's official bond are exempt from liability for the loss of the deposits because of the failure, bankruptcy, or other act or default of the depository. However, the EDA may accept assignments of collateral from its depository to secure deposits just as assignments of collateral are permitted by law to secure deposits of the City. (Minn. Stat. 469.099) ARTICLE VIII- POWERS The EDA may exercise all of the powers contained in the Enabling Resolution consistent with Minnesota Statutes, Sections 469.090 to 469.108. The EDA may exercise all of the powers contained in the Housing Act, Minnesota Statutes, Sections 469.001 to 469.047. The EDA may exercise all of the powers of an Agency contained in the Development Act, Minnesota Statutes, Sections 469.124 to 469.134. The EDA may exercise all of the powers of a redevelopment agency contained in the Industrial Bond Act, Minnesota Statutes, Sections 469.152 to 469.165. The EDA may exercise all of the powers of a city contained in the Housing Finance Act, provided authorized to do so by ordinance of the Council pursuant to Section 462C.02, Subdivision 6 of the Housing Financing Act. The EDA may exercise all of the powers of an authority contained in the Tax Increment Act, Minnesota Statutes, Section 469.174 to 469.179. The EDA may exercise such powers as may be contained in other laws applicable to economic development authorities or housing and redevelopment authorities not specifically described herein. bylaws rev 4-01 clean - 3 - ARTICLE IX. LIMITATION OF POWERS All official actions of the EDA must be consistent with the adopted Comprehensive Plan of the City and with any official controls adopted by the City Council to implement the Comprehensive Plan. ARTICLE X . ANNUAL REPORT AND BUDGET An EDA shall not levy a tax or special assessment, except as otherwise provided in Minn. Stat. 469.090 to 469.108, pledge the credit of the City or incur an obligation enforceable on property not owned by the EDA. Annually, at a time fixed by charter, resolution, or ordinance of the city, the EDA shall send its budget to the city council. The budget must include a detailed written estimate of the amount of money that the EDA expects to need from the city to do EDA business during the next fiscal year. The needed amount is what is needed in excess of any expected receipts from other sources. The fiscal year of the EDA shall be the same as the fiscal year of the City. Annually, at a time and in a form fixed by the City Council, the "EDA shall make a written report to the City Council giving a detailed account of its activities and of its receipts and expenditures during the preceding calendar year, together with additional matter and recommendations it deems advisable for the economic development of the City. The financial statements of the EDA must be prepared, audited, filed and published or posted in the manner required for the financial statements of the City. The financial statements must permit comparison and reconciliation with the City's accounts and financial reports. The report must be filed with the state auditor by June 30 of each year. The auditor shall review the report and may accept it or, in the public interest, audit the books of the EDA. At the request of the City or upon the auditor's initiative, the state auditor may make a legal compliance examination of the EDA including the salaries paid to the examiners while actually engaged in making the examination. The state auditor may bill monthly or at the completion of the audit. All collections received must be deposited in the general fund. (Minn.Stat. 469.100) ARTICLE XI . NOTICES Whenever the provisions of an applicable statute or these Bylaws require notice to be given to any Commissioner or officer, the provisions shall not be construed to mean personal notice unless explicitly stated; such notice may be given in writing by U.S. Mail, in a postage-paid, sealed wrapper, addressed to the Commissioner or officer at his or her address as appears in the books of the EDA, and the time when the notice is mailed shall be deemed to be the time of the giving of such notice. Special meetings of the Board of Commissioners may be called at any time by the President, or, in his/her absence, by the Vice President or by any two (2) Commissioners. Notice of special meetings of the Board of Commissioners shall be given to each Commissioner at least three (3) days prior to the meeting via telephone, telegram, letter or personal contact and shall state the time, place and the business scheduled to come before the EDA. Public notice of a special meeting shall comply with the requirements of the Minnesota Open Meeting Law. In the case of special meetings, the presence of any member of the commission at a special meeting shall constitute a waiver of any formal notice of the meeting unless the commissioner attends for the specific purpose of objecting to the holding of such meeting. bylaws rev 4-01 clean - 4 - ARTICLE XII - STAFF The City Manager shall serve as the Executive Director to the EDA. The EDA may employ a chief engineer, other technical experts and agents, and other employees as it may require, and determine their duties, qualifications and compensation. (Minn. Stat. 469.097, subd. 1). The EDA may contract for the services of consultants, agents, public accountants, and other persons needed to perform its duties and exercise its powers. (Minn. Stat. 469.097, subd. 2) The EDA shall use the services of the City Attorney. The City Attorney is its chief legal advisor. (Minn. Stat. 469.097, subd. 3) The EDA may purchase the supplies and materials it needs to carry out Minn. Stat. Sections 469.090 to 469.108. (Minn. Stat. 469.097, subd. 4) The EDA shall use the facilities of its City's purchasing department in connection with construction work and to purchase equipment, supplies, or materials. (Minn. Stat. 469.097, subd. 5) The City may furnish offices, structures and space, and stenographic, clerical, engineering or other assistance to the EDA. (Minn. Stat. 469.097, subd. 6) The EDA may delegate to one or more of its agents or employees powers or duties as it may deem proper. (Minn. Stat. 469.097,subd. 7) ARTICLE XIII - SEAL The official seal of the EDA shall be the same as the official seal of the City of Prior Lake. ARTICLE XIV - INSURANCE The EDA shall obtain a written opinion from the LMCIT regarding insurance coverage issues. The EDA shall purchase and maintain insurance as recommended by the LMCIT to cover the activities of the EDA including its Commissioners, officers, employees, agents and attorney. ARTICLE XV - AMENDMENT OF BYLAWS Alterations, amendments or repeal of the Bylaws may be accomplished by a majority vote of the Commissioners entitled to vote at any meeting, if the notice of such meeting contains a statement of the proposed alteration, amendment or repeal. Notice of any alteration, amendment or repeal of the Bylaws shall be given in writing to each Commissioner at least ten (10) days prior to the meeting at which said proposed alteration, amendment or repeal shall be considered. ARTICLE XVI - MISCELLANEOUS The conduct of meetings of the EDA shall be governed by the bylaws governing the conduct of the City Council meeting. ARTICLE XVII - CONFLICT OF INTEREST Except as authorized in Minn. Stat. Section 471.88, a commissioner, officer or employee of the EDA must not acquire any financial interest, direct or indirect, in any project or in any property included or planned to be included in any project, nor shall the person have any financial interest, direct or indirect, in any contract or proposed contract for materials or service to be furnished or used in connection with any project. (Minn. Stat. 469.098) bylaws rev 4-01 clean - 5 - ECONOMIC DEVELOPMENT EDA OFFICERS President............................................... . Vice President........................................ Treasurer.............................................. . Executive Director.................................. Frank Boyles Assistant Treasurer................................ Ralph Teschner Secretary. ........ ...................................... Kelly Meyer EDA Attorney......................................... Suesan Lea Pace bylaws rev 4-0 I clean - 6 - ECONOMIC DEVELOPMENT AUTHORITY CITY OF PRIOR LAKE MEETING DATE: AGENDA#: PREPARED BY: JUNE 18,2001 8e DONALD RYE, PLANNING DIRECTOR AGENDA ITEM: CONSIDER APPROVAL OF PROPOSAL OF MACKIN LIBRARY MEDIA TO ACQUIRE AND DEVELOP A 4.1 ACRE PARCEL IN WATERFRONT PAS AGE BUSINESS PARK DISCUSSION: Mackin Library Media, which is owned by Kitty and Randal Heise who are residents of Spring Lake, has submitted an unsolicited contingent purchase agreement and earnest money check for $5,000 as part of their offer to buy the last remaining parcel in the Business Office Park. They have also submitted a preliminary application for financial assistance to aid in the construction of a 60,000 square foot building to house their business and their 90 employees. They indicate the building would likely be built in two phases. Mackin is a firm that distributes library books and other non- print materials to schools and media centers around the United States. They currently are located in Burnsville. Purchase offer Mackin has offered to purchase the 4.17 acre parcel for $50,000 or just over $.27 per square foot. They have indicated this price is based on the likelihood of substantial soil correction costs on the site. City staff has estimated correction costs to be approximately $134,000. The applicant has suggested a figure of $193,937, but this figure includes about 16200 Eagle Creek Ave. s.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER $35,000 in costs which would likely be incurred whether there was any soil correction or not. In either case, there appears to be significant soil correction costs. Existing development in the Business Park The procedure that has been followed to date in the development of the Business Park has been to charge $2.08 per square foot for the land. This is the price that was calculated to recover the City's cost in developing the Business Park in the first place. These costs included land acquisition, site grading, extension of utilities and street construction. Subsequent TIF deals for the individual developments in the Park were structured in such a way that the effective price to the land purchasers was in the range from $1.25 to $1.50 per square foot. These deals were set up to reimburse the developer for a portion of the land acquisition cost of $2.08 if the value of the development provided tax increments greater than a specified amount in the development agreements. There is at least one project in the Business Park that has yet to receive any increment. None of these deals provided additional assistance for construction, except for some soil correction. In summary, the deals to date have provided for the reimbursement of up to 35% of the purchase price with no assistance for actual construction. Mackin Library Media Proposal If we' assume a price of $1.25 per square foot, the projected sale price of the lot would be $227,000. Subtracting the soil correction cost of $134,000 would suggest a price of $93,000. At $2.08 per square foot, the net price would be $243,800.As indicated previously, Mackin has offered $50,000 for the land or $.27 per square foot. The potential exists, of course, for the soil correction costs to be considerably higher. The number of soil borings on which the estimate was based was fewer than what would normally be done with a specific building plan in mind. The applicants have indicated their offer of $50,000 is contingent on further soil studies that conceivably could result in an offer lower than the one currently being offered. Tax Increment Financing In addition to the reduced purchase price, Mackin is also requesting TIF assistance. The applicants have filed a preliminary application for financial assistance. Copies of the relevant application ma.terials are attached. The specific request is for Tax Increment Financing over a 10 year period. The total amount of TIF assistance being requested is ISSUES: ALTERNATIVES: $520,000. The projected project cost is $2,700,000. The requested TIF assistance is 19.25% of the overall project cost. In the case of the existing Districts in the Business Park, the actual amount of assistance provided won't be known until the termination of the Districts because these Districts are pay-as- you-go Districts and the amount reimbursed each year varies due to changes in market values and tax rates. However, as noted above, the deals currently in place provide at a maximum, a reduction of about 35% of the initial purchase price of the land. The basic issue is whether the EDA is inclined to provide the level of assistance being requested by the applicant. As noted, the amount of requested assistance is greater than that provided to other businesses in the Business Park. The EDA needs to decide if the sale of the last parcel in the Business Park and the addition of Mackin Media to the City would justify the level of assistance being requested. Staff is of the opinion that this request is inconsistent with the level of assistance that has been provided to other businesses and raises a question of equity. Another issue is the significant cost of soil correction required on the site. It appears that almost half the potential value of the site is lost to correction costs and raises the question whether another use of the property should be considered. If the request for assistance by Mackin is rejected, staff would suggest the EDA direct staff to investigate the positive and negative aspects of the creation of a "wetland bank" on the site. This would entail the construction of a wetland on the site. The City would then sell "wetland credits" to developers who fill wetlands on their sites and do not have the ability to mitigate the wetland loss on their own site. State law allows them to purchase wetland credits from sites where wetlands have been created and designated as a wetland bank. 1. Accept the purchase agreement -and direct staff to prepare a resolution approving in concept the use of Tax Increment Financing as proposed. 2. Reject the purchase offer and request for Tax Increment Financing. 3. Reject the purchase offer and request for Tax Increment Financing and direct staff to investigate the feasibility of RECOMMENDED MOTION: REVIEWED BY: il establishing a wetland bank on the 4.17 acre parcel. Alternative 3. Frank Boyles, City Manager CITY OF PRIOR LAKE PRE-APPLICATION FOR FINANCIAL ASSISTANCE Legal name of applicant: Mackin Library Media Address: 615 W. Travelers Trail Burnsville, MN 55337 Telephone number: 952-890-6450 E-mail address: ghappe@efhco.com Name of contact person: Gene F. Happe Type of financial assistance requested: -L Tax Increment Financing Tax Abatement Cash Contribution Low Interest Loan Conduit Bonds Other: PROJECT INFORMATION: The following information must accompany this Pre-Application. 1. A map showing the location of proposed development. 2. General description of the project including estimated cost, size and location of building(s); business type or use; traffic information including parking, projected vehicle counts and traffic flow; timing of the project; estimated market value following completion. 3. Indicate the purpose and need for the requested financial assistance. 4. The existing Comprehensive Guide Plan Land Use designation and zoning of the property. Include a statement as to how the proposed development will conform to the land use designation and how the property is or will be zoned. L:\O 1 files\OI eda\lifpre-applicalion.doc 1 16200 Eagle Creek Ave. s.E., Prior Lake, Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245 AN EQLiAL OPPORTLiNITY EMPLOYER :..........:. ____-~___......................_._....__.._'...,..._.,_ .,._.... _ ..... ..... __. '0'_. ~_._." __'.' '._. _ ____.. _.,_",_,.,~."...._,k"._".~ _"'"__._,, ". "_".~'..j. _...__. ""_ ,-.._. ~ 5. A statement identifying the public benefits of the proposed project including estimated increase in property valuation, new jobs to be created and other community assets. 6. Background information on developer's company or corporation, including principals, history and past projects. SIGNATURE: I-~~ Applicant's Signature: Title: President Date: 5/21/01 L:\OI files\OI eda\titpre-application.doc 2 If Information in Support of Pre-Application For Financial Assistance-City of Prior Lake 1. Map showing the location of the proposed development. (See Exhibit A) 2. Mackin Library Media proposes to build a 60,000 square foot distribution facility to conduct their library media business. They will build a minimwn of 30,000 for their existing use with approximately 30,000 expansion space to be leased on a short term basis. Parking will be provided to meet code with additional consideration given to parking for approximately 90 existing employees and future needs. The estimated market value of the project upon completion will be approximately two million seven hundred thousand ($2,700,000) dollars. 3. The purpose of the request for financial assistance is to provide for the ability to build the expansion space today to anticipate our expansion needs well in advance. The rentals to be derived make it difficult to build the 30,000 expansion space at today's construction cost. For a comparison of the investment with and without financial assistance, see Exhibits B & C attached hereto. The annual return on investment to the applicant is approximately 1.72% without assistance and approximately 9.43% return with assistance. The 9.43% return with assistance is still below a reasonable return on real estate investments. 4. The property is properly zoned for manufacturing and distribution and the zoning will not be changed. 5. The primary benefit to the City of Prior Lake will be increased assessed valuation of approximately 2.7 million dollars. It will also provide additional job opportunities as the business expands. The total valuation, including land which is not presently on the tax. rolls, will be added to the tax. base for the City of Prior Lake as well as Scott County. 6. The background information on Mackin Library Media, as well as the owners, Randal and Kitty Heise, has been furnished with the proposal to purchase the underlying land for this proposal. ..... ' . ___ _~<'-~...~..,,_."_. ___..:_ __:-_-:-.. _ -.,_........;....__:....-..c.....:_ .'~ _.~.., ..__.'- __. _ .. ,'_.. .._,., ..._ _..............._ _ r', _ _'.' _.__ ..'_.._.' _ '_ . ~f~MapsO EXHIBIT A Yahoo! - Yellow Pages - ~ Powered by Mapquest.com (tm) Y! Domains: Get your URL Now Click for Details Welcome, Guest User Yahoo! 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"'''' oc.> .0-........ 0'" 00 00 00 r- ~ 00 m z o o :: m :0 m o m 'li -l f1 :Erri~ =lZO S-<zs cmz '-l ~ c: ~"Oto ><;;o~ _0:0 Z.J,,-< 00:: :O:Om ms:o ~)>> Z -l "T1 ~ :z o z " > en en Cii ~ Z o m -< ~ :0 -< ~ ;;0 ~ l'T1 X :J: ...... OJ ...... -I OJ -< ~ :0 "" -< ~ ;;0 .... -< ~ ;;0 01 -< ~ ;;0 '" -< ~ ;;0 .... -< ~ ;;0 <>> -< m > :0 '" -< ~ ;;0 ~ o . .' -- - -- -' -.......- ---.--.---..........--.-------.---- - -_. CITY OF PRIOR LAKE 16200 EAGLE CREEK AVE SE PRIOR LAKE, MN 55372 (612) 447-4230, FAX (612) 447-4245 RECE~PT # 38586 DATE: ~ [<;',0/ for the purpose of ReceiVedOL~~h r~7t1 ~/RUJ1MttJffil UU:;e the sum of ~ ~ fo.5<) Lito dollars .~~~~ !;t)tdE~lzt7n;1-i)/l1-1tlfV2- Invoice # $ ,~(f!J7)1 ,0 .<' Iv.rOf 3/ - ; If\ (/11 ~ J .-:Vt ! 1 \. II/VV'Yv ' v . ;QI,7'Y v tU'v _~ (; - ~vl: .\~C n~i' F"" l)f. I L MACKIN LIBRARY MEDIA 615 TRAVELERS TRAIL WEST BURNSVILLE, MN 55337 PH. (6121895-9540 811e~Lake EXPLANATION AMOUNT .F;'~...._~ I 79-254/918 1168 r-' \ nOI r\ \Ie.... \"VlD v.~a Y'\ci + 1\00 TO THE ORDER OF , I 'T 'j OF PR \0 -R.. LPt ~E:. DESCRIPTION CHECK AMOUNT $15000.co! FIRST NATIONAL BANK WOODBURY, MN rCJL IlkBN CD .~. . III 0 0 . . b B III I: 0 g . B 0 2 5 1.. 7 I: 5 0 5 0 0 0 2 5 III ..,..... -" ....~.. "".,,, "....."'_...",... '., SECURITY ;:::A TURES. \"IC8.0 PRINT BORDERS. COLORED BRICK ?AT7=:~N 'N':" TE=lMARK ON REVERse SIDE. MISSING FEATURE INDICATES A copy ..........'.......,.......-""... . . .'- ---,,-,,--~,...........-,'" ~---.~~._.._......_~,._----""-~-,--_. ~'..J.o.'_~___~""~_'_~~_". ~.~,," . ,-... __. _~ .... _r.,..'. KIN LIBRARY MEDIA THE FULL-SERVICE SOURCE FOR BOOKS, CD'S & AV May 14,2001 Mr. Don Rye City Planner City of Prior Lake Prior Lake, MN 55372 Dear Mr. Rye: Our search for a new building site to relocate our company has come down to two parcels of land. One is located in Burnsville and is in a full TIF district. The second is the last remaining lot in your Prior Lake commercial park on County Road 21. The Bumsville property is actually a better location for our employees, as it is more centrally located. However, your Prior Lake property is more attractive to us as owners because we are Prior Lake residents. Also important to us is the fact that we have three children in the Prior Lake schools, and we would like to keep our tax dollars working in our community. The City of Bumsville will offer us a full TIF arrangement, which will in fact cover the entire cost of the land and all site work including blacktop, curb and gutter, soil correction and landscaping. We will be building a 60,000 square foot building that will house our business, Mackin Library Media, and two or three additional tenants (this may be done in two phases). Mackin Library Media is privately owned by my wife and me (Kitty and Randal Heise) and is incorporated as a regular "C" corporation in the State of Minnesota_ Established in 1985, we now serve over 6,000 school libraries throughout the country and around the globe. We distribute library books and non-print materials to schools and media centers (pre-school through post-high school). All our materials are shipped fully cataloged and completely shelf- I ready (see enclosed literature for details). Mackin presently employees over 90 local people and will be adding staff regularly as our annual growth rate is over 20%. Our employee base is loyal and long-standing with many great individuals who have been with us 12 to 14 of our 17 years. We offer very flexible work schedules and have many part-time and full time opportunities that will create potential employment for many Prior Lake residents. Mackin employees average 40 years of age, are predominantly female, and will be great contributors to the local Prior Lake economy. It is without question that many local businesses will surely '[)enefit from the influx of 100 additional consumers each day. Plus, it is likely some of our existing and new employees will become Prior Lake home and property owners in the years ahead. WE REALLY DO CARE. 615 TRAVELERS TRAIL WEST, BURNSVILLE, MN 55337-2553 (952) 895-9540 or 1-800-245-9540 Fax: (952) 894-8806 or 1-800-369-5490 E-mail: mackin@mackin.com Tr Mr. Don Rye May 14,2001 Page 2 However, to make the move to Prior Lake, we may be forced to increase compensation to some V of our key employees who may be less than enthusiastic about moving to Prior Lake. It is, therefore, true that we canpot ,Ray more fer theJ~.rigr ~~e lo~~!i.9.!!Jhill1..1l;1e BUJllJ?.Y.m~JQ~ation.~ ~Qich ~ basically bein~.E~~d at n.9._~g~.~llQ.s1..b.s;.9AlJSe_of t4~JIF '. However, understanding your situation to some degree, we are willing to make a good faith offer. We would like to. relocate our business and all ef our empleyees to. your Prier Lake site, build a $2,500,000.00 building, and effer a lump sum payment ef $50,000.00 for the land. We have enclosed a check for $5,000.00 as earnest money on the attached purchase agreement. The offer yvill_~~_contingent upon a determination that the soil correction costs do not exceed the attached- estimates~-- ...... -".--- . ....--.......-....... .... .-. ~,._~. ~.._._.--.I In light of the fact that \Ve have no land cost in Burnsville,we consider our offerJ()J?~.y'ery ~asona~~~= 'We.T06kforwarciio your approval. . . ..' Sincerely, rQ Randal M. Heise Mackin Library Media Enclosures . EFH Co. General Contractor May 14,2001 2999 W. County Road 42 Suite 206 Burnsville, Minnesota 55306 Mr. Don Rye City Planner City of Prior Lake Prior Lake, MN 55372 952-890-6450 952-890-5476 Fax Re: Kitty & Randall Heise Land Purchase Dear Mr. Rye: Our office has been retained by Kitty and Randal Heise to assist them in selecting a site for the construction of their new office/warehouse facility to be used by Mackin Library Media, their wholly owned operating company. After researching their needs, they have narrowed the search to two sites, one in Burnsville and one in Prior Lake. The Bumsville site has available Tax Increment Financing assistance for land acquisition and site development costs and has only limited soil correction costs. The Prior Lake ~it~ iB ~till n~~il:'l'Ible because oLthe Hei~~s wish tQj~ate close to their home in Prior Lake. Notwithstanding this desire, the site available has potentially serious soil problems. We have taken the liberty of securing an estimate of costs to correct the site using the soil boring information furnished to us by the City of Prior Lake. A copy of that potential cost is enclosed as Exhibit B. Keep in mind that these borings are quite old and the moisture could be less of a problem with new borings but could also be more serious. Because of the potential for substantial soil correction costs, the Heises are tendering an offer to purchase the land for $50,000.00. This offer is still contingent upon further investigation into the final costs. We would expect to have additional borings done, have test pits dug and receive an engineer's analysis of the suitability of this lot for construction. The planned building is approximately 60,000 square feet, with 30,000 square feet to be built and occupied immediately upon completion of the construction. Phase two of the project will depend upon expansion needs and leaving of a certain amount of tenant space. It is estimated Phase II will be constructed within one year. ;1 Mr. Don Rye May 14,2001 Page 2 In addition to the land purchase, we are seeking any additional financial assistance available for development costs of this property. The cost of the Prior Lake land coupled with assistance available will enable us to make a final choice for our new home office. It is necessary for us to occupy Phase I of our new facility shortly after the first of next year, so time is of the essence. We have asked for a response to our purchase agreement by June 8, 2001 in order to proceed with plans in time for fall construction start. We realize that City Council approval will be necessary and, in the event this offer doesn't allow enough time for processing, please call me regarding any additional time needed. I am enclosing the purchase offer, a preliminary site plan of the proposed building and a summary background of Mackin Library Media and Kitty and Randal Heise. If you have any questions on the enclosures, please call me. ~trulY' ~ e F. Happe . President cc: Kitty and Randall Heise Enclosures