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Home My WebLink About02 12 2024 EDA Agenda Packet Phone 952.447.9800 / www.priorlakemn.gov 4646 Dakota Street SE Prior Lake, MN 55372 PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY AGENDA Monday, February 12, 2024 – 4:00 p.m. Parkview Community Room Reports included with this agenda can be found on the City of Prior Lake website at www.cityofpriorlake.com Please follow this file path: Agendas & Minutes / Economic Development Authority / 2024 / February 12, 2024 1. CALL TO ORDER 2. ELECTION OF OFFICERS 3. APPROVAL OF AGENDA 4. APPROVAL OF MEETING MINUTES A. November 13, 2023 5. CONSENT AGENDA A. Year-End Development Update (12/31/2023) B. Year-End EDA Revenue & Expenditure Report (12/31/2023) C. Monthly Development Update (1/31/2024) 6. REMOVED CONSENT AGENDA ITEMS 7. PRESENTATIONS A. None 8. OLD BUSINESS A. None 9. NEW BUSINESS A. Consider Approval of a Purchase Agreement for Property at 4556 Colorado Street SE B. 2024-2028 Arts and Culture Committee Strategic Plan Update C. 2024 Arts and Culture Committee Prior Lake Community Artist RFQ D. Potential 2024 Development Update 10. OTHER BUSINESS A. Staff Updates i. Orderly Annexation Agreement B. Commissioner Comments 11. ADJOURNMENT Phone 952.447.9800 / priorlakemn.gov 4646 Dakota Street SE Prior Lake, MN 55372 Economic Development Authority Meeting Minutes Monday, November 13, 2023 1. CALL TO ORDER Chair Prchal called the meeting to order at 4:01 p.m. In attendance were Prchal, Marco, Boucher- Hoese, Briggs and Braid. Also present were Executive Director Wedel, staff Liaison McCabe, Dep- uty City Clerk / Administrative Assistant Kooiman, and several members of the Arts and Culture Committee including, Belanger Braid, Augustson, Pelinka, Bryant, and Bigalk. 2. APPROVAL OF AGENDA MOTION BY BRIGGS, SECONDED BY BOUCHER-HOESE TO APPROVE THE AGENDA. Ayes by Prchal, Braid, Briggs, Boucher-Hoese and Marco. The motion carried 5-0. 3. APPROVAL OF MEETING MINUTES MOTION BY BRAID, SECONDED BY BOUCHER-HOESE TO APPROVE THE OCTOBER 9TH, 2023, MEETING MINUTES. Ayes by Prchal, Briggs, Braid, and Boucher-Hoese. The motion carried 4-0-1 with Marco abstaining. 4. CONSENT AGENDA A. Monthly Development Update (10/31/2023) MOTION BY BRIGGS, SECONDED BY MARCO TO APPROVE THE MONTHLY DEVELOPMENT UPDATE. Ayes by Prchal, Braid, Boucher- Hoese, Briggs and Marco. The motion carried 5-0. 5. REMOVED CONSENT AGENDA ITEMS None 6. PRESENTATIONS A. Joint EDA / Arts and Culture Committee Discussion The joint discussion included updates on: ➢ Formation of the Friends of the Arts, Prior Lake nonprofit. ➢ Upcoming projects the ACC is focusing on, including a possible mural on the Wagon Bridge over CH21 and additional sidewalk stamping/etching. ➢ Nonprofit plans for fundraising and marketing of the new organization in the near future. Current ideas include a mural puzzle and other options. EDA Commissioners suggested promotion of the nonprofit organization on Splash and other city social media once they receive their official DBA designation from the State. Commissioners also recommended the nonprofit attend up- coming Chamber and other community organization meetings to make the community aware of their organization. ➢ The need for the nonprofit organization to identify additional board members. ➢ EDA member encouragement to incorporate ties to Prior Lake’s history in future projects. ➢ ACC and EDA members requested a list of donors who provided funding for the Yesterday and Today mural be shared with the group. 7. OLD BUSINESS A. EDA Property Acquisition Opportunity McCade provided an update to the EDA on staff discussions about possible EDA acquisition of a property with a Colorado Street property owner. McCabe shared staff and the property owner have reached a verbal agreement on purchase price and he hopes to have a purchase agree- ment for EDA consideration at the next meeting. 8. NEW BUSINESS None 9. OTHER BUSINESS A. Staff Updates i. Property for Sale 4636 Colorado St. SE McCade informed the EDA that he and Wedel toured a commercial property for sale on Colorado Street. The property is currently under a purchase agreement and that potential buyer has been in contact with City staff during their due diligence period. ii. Advisory Committee Recognition November 20,2023 Prchal: reminded EDA commissioners of the upcoming advisory committee recognition din- ner on November 20th. iii. Next EDA Meeting December 11, 2023 B. Commissioner Comments Briggs informed the EDA that he attended the ribbon cutting for the new VFW remodeling and the improvements look great. McCabe and Wedel updated the commissioners on a recent open house hosted by the City for residents of orderly annexation areas 24.1 and 24.2, as well as the status of discussions with Spring Lake Township and the Orderly Annexation Work Group related to a new orderly annex- ation agreement. ADJOURNMENT MOTION BY BRIGGS, SECONDED BY MARCO TO ADJOURN THE MEETING. Ayes by Prchal, Braid, Boucher-Hoese, Briggs and Marco. The motion carried 5-0. The meeting adjourned at 5:28 pm. Submitted by Megan Kooiman, Deputy City Clerk / Administrative Assistant 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2024 AGENDA #: 2 PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Election of Officers DISCUSSION: Introduction Article 5.1 of the EDA Bylaws state the officers of the EDA shall be elected at the first meeting of the year. Officers include President, Vice-President, Treasurer, Secretary, and Assistant Treasurer. History The 2023 elected EDA officers were: Kim Prchal as President; Marie Boucher- Hoese as Vice-President; Cathy Erickson as Treasurer; Jason Wedel as Secre- tary; and Casey McCabe as Assistant Treasurer. Current Circumstances All EDA Commissioners are eligible to become officers for 2024. The EDA Bylaws provide that the city’s Finance Director be designated as the Treasurer, and the bylaws further allow non-commissioners to hold the officer po- sitions of Secretary and Assistant Treasurer. In previous years, the City Manager / EDA Executive Director has been elected Secretary and the Community Devel- opment Director has been elected Assistant Treasurer. Conclusion The 2024 EDA officers of President, Vice-President, Treasurer, Secretary and As- sistant Treasurer should be elected by the EDA Commissioners on February 12th. FINANCIAL IMPACT: None ALTERNATIVES: 1. Motion(s) and second(s) to elect EDA officers for 2024. 2. Table the election. RECOMMENDED MOTION: Alternative No. 1 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2024 AGENDA #: 5A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Development Update DISCUSSION: Introduction The purpose of this agenda item is to review the year-end residential and com- mercial development update as of December 31, 2023. History EDA Commissioners requested an update of residential and commercial activity at each meeting. Conclusion The attached memorandum provides a summary of the residential and commer- cial development in the City of Prior Lake as of December 31, 2023. ALTERNATIVES: RECOMMENDED MOTION ATTACHMENT: 1. Motion and a second, under the consent agenda, to accept the development update. 2. Remove this item from the consent agenda for additional discussion. Alternative No. 1 1. Development Update Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com Memo Date: February 12, 2024 To: City of Prior Lake Economic Development Authority From: Casey McCabe, Community Development Director Subject: Residential & Commercial Activity Update Below is an update of the year-end residential and commercial development in the City of Prior Lake as of December 31 2023. $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 19 9 0 19 9 1 19 9 2 19 9 3 19 9 4 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 Total Building Permit Valuation Single Family Dwellings 68 $30,326,568.00 101 $40,895,553.50 Townhouses (# units)0 $0.00 4 $672,000.00 Multiple Units 1 $1,800,000.00 0 $0.00 New Commercial Industrial & Commercial 4 $7,044,460.00 2 $720,000.00 Residential 1059 $18,974,816.75 1105 $17,439,074.07 Industrial & Commercial 22 $1,343,739.00 28 $1,530,552.27 tMechanical 954 $0.00 844 $0.00 ttMechanical (SF & TH)272 $0.00 420 $0.00 TOTALS 2380 $59,489,583.75 2504 $61,257,179.84 t Mechanical permits include but are not limited to furnaces, water heaters, softeners, and fireplaces. They are flat-rate permit fees. tt Mechanical (SF & TH) permits include required plumbing, heating, sewer and water and fireplace permits for new single family residences They are flat-rate permit fees Additions and Alterations Number of Permits Declared Value -32.67% -100.00% #DIV/0! 100.00% -4.16% -21.43% Number of Permits Declared Value -4.95% 2023 Year to Date 2022 Year to Date New Residential 13.03% -35.24% Number of Permits % Increase / Decrease Increase/Decrease Declared Value % Increase / Decrease -25.84% -100.00% #DIV/0! -2.89% 878.40% 8.81% -12.21% n/a n/a $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 19 9 0 19 9 1 19 9 2 19 9 3 19 9 4 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 Prior Lake Total Commercial Building Permit Valuation New Commercial Commercial Addition/Alteration Name Address Type (New/Relocation/Expansion) Previous Tenant/Owner New SF Park Place Storage Phase I 6010 170th Street New Business Vacant / SF Home 84,870 Caribou Cabin 4100 Village Lake Drive SE New Business Vacant 605 Scooter's Coffee 15825 Franklin Trail SE New Business Vacant 668 Jeffers Lodge 3884 Fountain Hills Drive NE New Business Vacant 7,500 TOTAL 93,643 2023 Prior Lake Commercial Activity (New Construction) 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 Multiple-Family 0 0 0 0 0 0 3 8 4 4 0 67290 0 0 24154 0 0 0 0 0 0 0 0 0 222218 0 0 0 0 0 0 Single-Family Attached 1 1 1 1 13 6 35 32 46 65 8521630334519284 82 36 19 0 0 26 52 39 8 10 4 20 84 59 4 0 4 0 Single-Family Detached 75 5910817018317321913415717419017222017110811284 80 65 62 94 801221491181121088011414415813210168 0 100 200 300 400 500 600 700 800 900 UN I T S YEAR Prior Lake Residential Construction Single-Family Detached Single-Family Attached Multiple-Family $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 19 9 0 19 9 1 19 9 2 19 9 3 19 9 4 19 9 5 19 9 6 19 9 7 19 9 8 19 9 9 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 Prior Lake Total Residential Building Permit Valuation New Residential Residential Addition/Alteration 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2024 AGENDA #: 5B PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: EDA Revenue & Expenditure Report DISCUSSION: Introduction The purpose of this consent agenda item is to review the 2023 year-end EDA Revenue & Expenditure Report. History EDA Commissioners requested financial reports are provided on a quarterly basis. Current Circumstances Total EDA revenues were $403,289 (101.54% of budget). The primary source of revenue was the property tax levy ($367,277); additional revenue included $24,588 for rental of EDA-owned property and $11,424 in interest/investment earnings. 2023 expenditures were $176,389 (28.1% of budget). 2023 EDA expenditures primarily relate to staff wages and benefits as anticipated and budgeted. The main reason expenditures were less than pro- jected is the EDA did not acquire any properties in 2023 as anticipated in the budget. Conclusion EDA members receive quarterly financial reports of revenues and expenditures. ISSUES: There will be additional year-end adjustments, including payroll, paid in January that will be posted back to the period ending December 31, 2023. ALTERNATIVES: 1. Motion and a second, under the Consent Agenda, to accept the EDA Revenue & Expenditure Report. 2. Remove this item from the consent agenda for additional discussion. RECOMMENDED MOTION: Alternative No. 1 ATTACHMENTS: 1. EDA Revenue & Expenditure Report *NOTE: Available Balance / Pct Budget Used does not reflect amounts encumbered. REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE 1/2Page:01/04/2024 02:08 PM User: cmccabe DB: Prior Lake PERIOD ENDING 12/31/2023 % BDGT USED AVAILABLE BALANCE ACTIVITY FOR MONTH 12/31/2023 YTD BALANCE 12/31/2023 2023 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 240 - EDA SPECIAL REVENUE FUND Revenues Dept 00000.00 - GENERAL 92.22 28,769.07 162,031.44 341,230.93 370,000.00 Current Property Taxes - General Purpos240-00000.00-31010.00 100.00 (26,046.06)11,918.21 26,046.06 0.00 Fiscal Disparities240-00000.00-31040.00 0.00 0.00 0.00 0.00 0.00 Market Value Credit Aid240-00000.00-33423.00 0.00 0.00 0.00 0.00 0.00 Administrative Charges240-00000.00-34111.00 370.92 (7,043.95)0.00 9,643.95 2,600.00 Interest Earnings240-00000.00-36210.00 100.00 (1,779.70)0.00 1,779.70 0.00 Unrealized Inv.Gain(Loss)240-00000.00-36225.00 0.00 0.00 0.00 0.00 0.00 Contributions & Donations240-00000.00-36230.00 0.00 0.00 0.00 0.00 0.00 Contribution (Other Fund)240-00000.00-37901.00 0.00 0.00 0.00 0.00 0.00 Transfer from Other Funds240-00000.00-39203.00 101.64 (6,100.64)173,949.65 378,700.64 372,600.00 Total Dept 00000.00 - GENERAL Dept 46500.00 - ECONOMIC DEVELOPMENT 0.00 0.00 0.00 0.00 0.00 County-City Aids/Grants - Operating EDA240-46500.00-33610.14 100.00 0.00 0.00 24,588.00 24,588.00 Facility Rental - EDA240-46500.00-34760.02 0.00 0.00 0.00 0.00 0.00 Prof Service Fee Deposit - EDA240-46500.00-36220.14 0.00 0.00 0.00 0.00 0.00 Realized Inv Gain/(Loss)240-46500.00-36226.00 100.00 0.00 0.00 24,588.00 24,588.00 Total Dept 46500.00 - ECONOMIC DEVELOPMENT Dept 46503.00 - TECH VILLAGE INCUBATOR 0.00 0.00 0.00 0.00 0.00 Facility Rental - EDA240-46503.00-34760.02 0.00 0.00 0.00 0.00 0.00 Total Dept 46503.00 - TECH VILLAGE INCUBATOR 101.54 (6,100.64)173,949.65 403,288.64 397,188.00 TOTAL REVENUES Expenditures Dept 46500.00 - ECONOMIC DEVELOPMENT 90.83 10,506.79 12,734.08 104,018.21 114,525.00 Wages - Full Time240-46500.00-51100.01 58.33 1,250.00 250.00 1,750.00 3,000.00 Wages - Commissioners240-46500.00-51100.05 0.00 0.00 0.00 0.00 0.00 Overtime - Full Time240-46500.00-51110.01 0.00 0.00 0.00 0.00 0.00 Sick Leave - Buy Down240-46500.00-51208.01 0.00 0.00 0.00 0.00 0.00 Accrued Comp Time240-46500.00-51301.00 83.47 123.01 76.41 620.99 744.00 Compensated Absences240-46500.00-51400.00 85.27 1,073.20 741.64 6,213.80 7,287.00 Social Security Contributions240-46500.00-51450.00 85.28 250.80 173.44 1,453.20 1,704.00 Medicare Contributions240-46500.00-51451.00 89.73 888.64 955.07 7,760.36 8,649.00 PERA Contributions240-46500.00-51460.00 91.23 933.46 753.21 9,709.54 10,643.00 Health Insurance240-46500.00-51470.00 93.28 20.16 21.22 279.84 300.00 Retiree HCSP Contributions240-46500.00-51472.00 106.81 (36.78)46.40 576.78 540.00 Dental Insurance240-46500.00-51473.00 91.04 6.09 5.14 61.91 68.00 Life Insurance240-46500.00-51474.00 14.93 557.23 0.00 97.77 655.00 Workers Compensation Insurance240-46500.00-51477.00 0.00 0.00 0.00 0.00 0.00 Office Supplies240-46500.00-52010.00 0.00 1,000.00 0.00 0.00 1,000.00 Legal Services240-46500.00-53020.00 32.09 50,935.49 137.39 24,064.51 75,000.00 Professional Services - General240-46500.00-53100.80 0.00 0.00 0.00 0.00 0.00 Telecommunications240-46500.00-53210.00 0.00 500.00 0.00 0.00 500.00 Training and Employee Development240-46500.00-53310.10 0.00 0.00 0.00 0.00 0.00 Required Notice Publication240-46500.00-53510.00 *NOTE: Available Balance / Pct Budget Used does not reflect amounts encumbered. REVENUE AND EXPENDITURE REPORT FOR CITY OF PRIOR LAKE 2/2Page:01/04/2024 02:08 PM User: cmccabe DB: Prior Lake PERIOD ENDING 12/31/2023 % BDGT USED AVAILABLE BALANCE ACTIVITY FOR MONTH 12/31/2023 YTD BALANCE 12/31/2023 2023 AMENDED BUDGETDESCRIPTIONGL NUMBER Fund 240 - EDA SPECIAL REVENUE FUND Expenditures 34.94 3,253.05 0.00 1,746.95 5,000.00 Maint Agreements Misc Bldg & Structures240-46500.00-54010.51 50.00 250.00 0.00 250.00 500.00 Memberships and Subscriptions240-46500.00-54310.00 142.28 (5,285.01)0.00 17,785.01 12,500.00 Miscellaneous Expense240-46500.00-54320.00 0.00 385,000.00 0.00 0.00 385,000.00 Projects - Property & ROW Acquisit'n240-46500.00-55040.00 0.00 0.00 0.00 0.00 0.00 Projects - Professional Services240-46500.00-55050.00 28.10 451,226.13 15,894.00 176,388.87 627,615.00 Total Dept 46500.00 - ECONOMIC DEVELOPMENT Dept 46503.00 - TECH VILLAGE INCUBATOR 0.00 0.00 0.00 0.00 0.00 Office Supplies240-46503.00-52010.00 0.00 0.00 0.00 0.00 0.00 Small Equipment - General240-46503.00-52400.10 0.00 0.00 0.00 0.00 0.00 Legal Services240-46503.00-53020.00 0.00 0.00 0.00 0.00 0.00 Professional Services - Software Design240-46503.00-53100.60 0.00 0.00 0.00 0.00 0.00 Telecommunications240-46503.00-53210.00 0.00 0.00 0.00 0.00 0.00 Rent Subsidies240-46503.00-54095.00 0.00 0.00 0.00 0.00 0.00 Business Assistance240-46503.00-54100.00 0.00 0.00 0.00 0.00 0.00 Memberships and Subscriptions240-46503.00-54310.00 0.00 0.00 0.00 0.00 0.00 Miscellaneous Expense240-46503.00-54320.00 0.00 0.00 0.00 0.00 0.00 Building & Building Improvements240-46503.00-55520.00 0.00 0.00 0.00 0.00 0.00 Furniture and Office Equipment240-46503.00-55560.00 0.00 0.00 0.00 0.00 0.00 Machinery and Equipment240-46503.00-55570.00 0.00 0.00 0.00 0.00 0.00 Total Dept 46503.00 - TECH VILLAGE INCUBATOR 28.10 451,226.13 15,894.00 176,388.87 627,615.00 TOTAL EXPENDITURES 98.47 (457,326.77)158,055.65 226,899.77 (230,427.00)NET OF REVENUES & EXPENDITURES 28.10 451,226.13 15,894.00 176,388.87 627,615.00 TOTAL EXPENDITURES 101.54 (6,100.64)173,949.65 403,288.64 397,188.00 TOTAL REVENUES Fund 240 - EDA SPECIAL REVENUE FUND: 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2024 AGENDA #: 5C PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Development Update DISCUSSION: Introduction The purpose of this agenda item is to review the year to date residential and commercial development update as of January 31, 2024. History EDA Commissioners requested an update of residential and commercial activity at each meeting. Conclusion The attached memorandum provides a summary of the residential and commer- cial development in the City of Prior Lake as of January 31, 2024. ALTERNATIVES: RECOMMENDED MOTION ATTACHMENT: 1. Motion and a second, under the consent agenda, to accept the development update. 2. Remove this item from the consent agenda for additional discussion. Alternative No. 1 1. Development Update Phone 952.447.9800 / www.priorlakemn.gov Memo Date: February 12, 2024 To: City of Prior Lake Economic Development Authority From: Casey McCabe, Community Development Director Subject: Residential & Commercial Activity Update Below is an update of the year to date residential and commercial development in the City of Prior Lake as of January 31, 2024. Single Family Dwellings 9 $3,666,760.00 4 $2,000,000.00 Townhouses (# units)0 $0.00 0 $0.00 Multiple Units 1 $28,733,056.00 0 $0.00 New Commercial Industrial & Commercial 0 $0.00 0 $0.00 Residential 40 $1,043,715.00 23 $175,611.42 Industrial & Commercial 4 $317,748.00 4 $32,000.00 tMechanical 80 $0.00 53 $0.00 ttMechanical (SF & TH)36 $0.00 16 $0.00 TOTALS 170 $33,761,279.00 100 $2,207,611.42 t Mechanical permits include but are not limited to furnaces, water heaters, softeners, and fireplaces. They are flat-rate permit fees. tt Mechanical (SF & TH) permits include required plumbing, heating, sewer and water and fireplace permits for new single family residences They are flat-rate permit fees Additions and Alterations Number of Permits Declared Value 125.00% 100.00% #DIV/0! #DIV/0! 73.91% 0.00% Number of Permits Declared Value 70.00% 2023 Year to Date 2024 Year to Date New Residential 50.94% 125.00% Number of Permits % Increase / Decrease Increase/Decrease Declared Value % Increase / Decrease 83.34% 100.00% #DIV/0! 1429.31% #DIV/0! 494.33% 892.96% n/a n/a Phone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2024 AGENDA #: 9A PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Consider Approval of a Purchase Agreement for Property at 4556 Colorado Street SE DISCUSSION: Introduction The purpose of this agenda item is to consider approval of a resolution approving the purchase of property at 4556 Colorado Street SE and authorizing the EDA President and Executive Director to execute the purchase agreement. History The Prior Lake City Council has adopted a Strategic Plan identifying different priorities and initiatives for the community over the next several years. One of those initiatives is identifying strategic property acquisitions in the downtown area to facilitate future redevelopment opportunities. With that goal in mind, the City of Prior Lake and the Prior Lake EDA have purchased several downtown properties in recent years. At the direction of the EDA, city staff sent letters to several downtown property owners this summer to explore opportunities for additional downtown property acquisitions and gauge interest in a potential sale of their property. One of the single- family property owners contacted city staff with interest and there have been many discussions between staff and the property owner since the fall of 2023. Current Circumstances The property at 4556 Dakota Street is approximately 12,200 square feet and is occupied by a two-story single-family home and two-car detached garage. The 3- bed, 1-bath home was built in 1920 and has approximately 1,200 SF of finished space. The proposed purchase price of $246,600 is based on the Scott County 2022 (payable 2023) estimated market value. The purchase agreement terms also include the EDA renting the property back to the current owner until June 30, 2024 with monthly rental payments received during the rental term. ISSUES: City staff would not anticipate renting this property beyond the June 30, 2024 expiration of the rent term. If purchased, the property would be held by the EDA and used to facilitate a future commercial redevelopment; the EDA currently owns another vacant single-family property on this block and the City of Prior Lake owns the vacant parcel to the east. FINANCIAL IMPACT: In addition to the acquisition cost of $246,600, the EDA would be responsible for property taxes and special assessments related to a recent street reconstruction project. Property taxes are estimated at $3,500 per year; closing costs and title work is estimated at $5,000; future general property maintenance costs related to lawn and snow removal; utility costs, and possible demolition costs if a decision is made to remove the home in the future. The 2024 EDA budget includes $385,000 in Projects – Property and Right of Way Acquisition which would be used to fund this property purchase. If the EDA were to acquire the Colorado Street property, any future sale proceeds could be used to reimburse the EDA fund. ALTERNATIVES: 1. Motion and second to approve a resolution approving the purchase of property at 4556 Colorado Street SE and authorizing the President and Executive Director to execute the purchase agreement. 2. Motion and second to deny a resolution approving the purchase of property at 4556 Colorado Street SE. 3. Provide direction to staff and continue discussion at a future meeting. RECOMMENDED MOTION: ATTACHMENTS: Alternative No. 1 1. Real Estate Purchase Agreement 2. Fixed-Term Residential Lease Agreement DMNORTH #7085937 v1 228340v2 REAL ESTATE PURCHASE AGREEMENT THIS REAL ESTATE PURCHASE AGREEMENT (the “Agreement”) is made effective as of , 2024 (the “Effective Date”), between Paul Johnson (“Seller”), and the Economic Development Authority for the City of Prior Lake, Minnesota, a Minnesota municipal corporation (“Buyer”). In consideration of this Agreement and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Seller and Buyer agree as follows: 1. Sale of Property. Seller shall sell to Buyer, and Buyer shall buy from Seller, the following property pursuant to the terms and conditions herein set forth (collectively, the “Property”): (a) Real Property. The improved real property located at 4556 Colorado Street SE, Prior Lake, Minnesota, legally described on attached Exhibit A, together with all privileges, rights, easements, hereditaments and appurtenances thereto belonging and all right, title and interest of Seller in and to any streets, alleys, passages and other rights of way included therein or adjacent thereto (before or after the vacation thereof) and together with all improvements located thereon (collectively, the “Property” or “Real Property”). (b) Records. All records in Seller’s possession related to the Property. (c) Condemnation. The parties agree that Property is not being acquired by Buyer under threat of condemnation. 2. Purchase Price and Manner of Payment. The total purchase price for the Property is $246,600 (the “Purchase Price”). On the Closing Date (as hereinafter defined), the Purchase Price, shall be paid by Buyer in immediately available funds to Scott County Abstract and Title, Co., Inc., (the “Title Company”) to be disbursed pursuant to the Settlement Statement (as hereinafter defined). 3. Agreement of Sale and Purchase. Seller shall be obligated to sell the Property and Buyer shall be obligated to buy the Property as provided for in this Agreement. 4. Closing. The closing of the purchase and sale contemplated by this Agreement (the “Closing”) shall occur on March 20, 2024, or such earlier or later date agreed to in writing by Buyer and Seller (the “Closing Date”). The Closing shall take place at 10:00 a.m. local time at the Title Company’s office unless another location is mutually agreed upon by the parties. Seller shall deliver possession of the Property to Buyer on the Closing Date. 5. Rental Agreement. Prior to Closing, Buyer and Seller shall enter into a Lease Agreement in substantially the same form as attached Exhibit C for Seller to rent the Property from Buyer from the Closing Date until expiration of the Lease Agreement on June 30, 2024. 6. Possession/Personal Property and Fixtures. Seller shall deliver possession of the Property to Buyer on the Date of Closing. Prior to expiration of the Lease Agreement, Seller shall 2 228340v2 have removed all personal property from the Property. Seller may, but is not required to, remove appliances from the Property prior to expiration of the Lease Agreement. Seller shall not be responsible for removing fixtures and appliances prior to expiration of the Lease Agreement. Any possessions and personal property remaining on the Property after expiration of the Lease Agreement shall be deemed abandoned by Seller and shall become the sole property of Buyer. Buyer may dispose of the possessions and personal property in the manner that Buyer deems appropriate, and Seller shall be responsible for the costs to dispose of all possessions and personal property not removed prior to expiration of the Lease Agreement per the terms included in the Lease Agreement. Buyer shall not be liable to Seller, their representatives, heirs or assigns for disposing of the possessions or personal property. 7. Title. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed, conveying good and marketable title of record, subject to: A. Reservations of minerals or mineral rights by the State of Minnesota, if any; B. Building and zoning laws, ordinances, state and federal regulations; and C. Applicable laws, regulations, zoning regulations and ordinances, whether federal, state or local; and D. Encumbrances to title which constitute encumbrances, restrictions, or easements which have been disclosed to Buyer and accepted by Buyer in writing; (hereinafter “Permitted Encumbrances”). 8. Title Search. The Real Property may be subject to restrictions contained on the plat, deed, covenants, conditions, and restrictions, or other documents noted in a Title Search Report. Upon execution of this Agreement by the Parties, Buyer will, at the expense of Buyer, order a Title Search Report and have delivered to the Buyer. (a) Upon receipt of the Title Search Report, the Buyer shall have ten (10) business days to notify the Seller, in writing, of any matters disclosed in the report which are unacceptable to Buyer. Buyer’s failure to timely object to the report shall constitute acceptance of the Title Search Report. (b) If any objections are made by Buyer regarding the Title Search Report, mortgage loan inspection, or other information that discloses a material defect, the Seller shall have ten (10) business days from the date the objections were received to correct said matters. If Seller does not remedy any defect discovered by the Title Search Report, Buyer shall have the option of canceling this Agreement. (c) After Closing, Buyer shall receive an owner’s standard form policy of title insurance insuring marketable title in the Property to Buyer in the amount of the Purchase Price, free and clear of the objections and all other title exceptions agreed to be removed as part of this transaction. 3 228340v2 9. Lien for Medical Assistance. Seller indicates that the Property is not subject to a lien for Medical Assistance or other public assistance. 10. WELL DISCLOSURE. Seller certifies that Seller does not know of any wells on the Property. 11. DISCLOSURE OF INDIVIDUAL ON-SITE SEWAGE TREATMENT SYSTEM. Seller certifies that Seller does not know of any individual on-site sewage treatment systems on the Property. 12. PROTECTED HISTORICAL SITES. Seller represents that Seller does not know if there are historical, Native American, or archeological materials on or in the Property that might be protected by law. 13. METHAMPHETAMINE DISCLOSURE STATEMENT. To the best of Seller’s knowledge, methamphetamine production has not occurred on the Property. A county or local health department or sheriff has not ordered that the Property or some portion of the Property is prohibited from being occupied or used until it has been assessed and remediated as provided in the Department of Health’s Clandestine Drug Labs General Clean-up Guidelines. 14. SELLER’S COVENANTS, REPRESENTATIONS, AND WARRANTIES. Seller, as part of the consideration, therefore, represent warrant, and covenant with Buyer and its successors and assigns that to the best of Seller’s actual knowledge and without any investigation or inquiry, as follows: A. Seller has or as of the Date of Closing will have marketable and insurable title to the Property of record, free and clear of all liens, encumbrances, leases, claims and charges, all material easements, rights-of-way, covenants, conditions and restrictions, and any other matters affecting the title, except for the Permitted Exceptions. Seller has the present full authority and power to execute this Agreement and, on or prior to the Date of Closing, Seller shall have the full authority and power to close the sale of the Property. B. To Seller’s actual knowledge, the conveyance of the Property pursuant hereto will not violate any applicable statute, ordinance, governmental restriction or regulation, or any private restriction or agreement. C. As of the Date of Closing there will be no outstanding or unpaid claims, actions, or causes of action related to any transaction or obligation entered into or incurred by Seller with respect to the Property prior to the date hereof. D. Except as provided herein, Seller shall indemnify and defend Buyer and otherwise hold Buyer harmless of, from, and against any broker who may be entitled to any commission or finder’s fee in connection with the transaction contemplated herein to the extent arising from Seller’s actions. E. Seller is not foreign persons as defined in § 1445(f)(3) of the Internal Revenue Code or regulations issued thereunder. F. To Seller’s actual knowledge, there is no action, litigation, investigation, or other proceedings of any kind pending or threatened against Seller with respect to the Property. 4 228340v2 G. To Seller’s actual knowledge: (i) no toxic materials, hazardous wastes or hazardous substances, as such terms are defined in the Resource Conservation and Recovery Act of 1996, as amended (42 U.S.C. § 6901, et seq.) or in the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended (42 U.S.C. § 9601, et seq.), including, without limitation, any asbestos or asbestos- related products or materials and any oils, petroleum-derived compounds, or pesticides ("Hazardous Materials") have been generated, treated, stored, released, or disposed of or otherwise placed, deposited in, or located on the Property; and (ii) the Property is free of Hazardous Materials and is not subject to any “superfund” type liens or claims by governmental regulatory agencies or third parties arising from the release or threatened release of hazardous substances in, on, or about the Property. Seller shall indemnify and hold Buyer harmless from any and all claims, causes of action, damages, losses, or costs (including reasonable lawyer’s fees) relating to breach of the foregoing representations and warranties by Seller or to hazardous substances or petroleum products in the subsoil or ground water of the Property which arise from or are caused by acts or occurrences upon the Property prior to Buyer taking possession. These warranties and indemnifications shall survive the delivery of the Warranty Deed. The covenants, representations, and warranties contained in this Section shall be deemed to benefit Buyer and its successors and assigns and shall survive any termination or expiration of this Purchase Agreement or the delivery of the Warranty Deed. All of Seller’s covenants, representations, and warranties in this Agreement shall be materially true as of the date hereof and of the Closing Date and shall be a condition precedent to the performance of Buyer's obligations hereunder. If Buyer discovers that any such covenant, representation, or warranty is not true, Buyer may elect prior to Closing, in addition to any of its other rights and remedies, to cancel this Agreement, or Buyer may postpone the Closing Date up to ninety (90) days to allow time for correction. If Buyer elects to proceed with the Closing following such discovery, Buyer shall be deemed to have waived its rights to assert a claim against Seller arising from the inaccuracy or untruthfulness of any such covenant, representation, or warranty. Seller indemnifies Buyer from any breaches of the covenants, warranties, and representations set forth in this Section. 15. Relocation Benefits. Seller is aware of Seller’s rights and payments that Seller may be eligible to receive pursuant to the Uniform Relocation Assistance Act (the “Act”). Seller acknowledges that Seller has been given the opportunity to seek and receive the advice of legal counsel with respect to relocation, moving, reestablishment, and other costs, if any, that may be available under the Act. Seller hereby acknowledges that the payment of the Purchase Price does not include a payment for Relocation Benefits. At Closing, and as a condition precedent to Closing, Seller will waive any right to receive any relocation payments pursuant to the Act (or other federal or state law provisions) with respect to the Property. Seller acknowledges that Seller will make such a waiver of Seller’s own volition and with full knowledge of the specific relocation benefits to which Seller may be entitled. Seller and Buyer agree that this is a voluntary sale by Seller. Buyer represents that Buyer would not acquire the Property in the event that negotiations between Seller and Buyer had failed to result in an amicable agreement. If the transaction set forth by this Agreement is not completed, Buyer has no 5 228340v2 present intent to acquire the property by eminent domain and has not considered the use of eminent domain. If this Agreement is terminated for any reason, Seller is free to retain ownership of the Property or to sell the Property on the private market. As Buyer and Seller agree that this is a voluntary sale, state and federal law permit the Buyer to request a waiver of relocation benefits from Seller, as provided under Minn. Stat. § 117.521. Prior to and as a condition of Closing, Seller will be required to sign a relocation waiver, the form of which is substantially the same as shown on the attached Exhibit B and the final form will be subject to the approval of Buyer (“Relocation Waiver”). If Seller does not waive relocation benefits, this Agreement will be terminated, and Seller will be free to retain ownership of the Property or sell on the private market. 16. Closing Documents. (a) On the Closing Date, Seller shall execute and/or deliver to Buyer the following (collectively, the “Seller’s Closing Documents”), provided by Buyer for Seller’s execution: (1) Warranty Deed. A Warranty Deed conveying Seller’s interest in the Real Property to Buyer. (2) Seller’s Affidavit. An Affidavit of Seller indicating that on the Closing Date there are no outstanding, unsatisfied judgments, tax liens or bankruptcies against or involving Seller or the Property; that there has been no skill, labor or material furnished to the Property at Seller’s request for which payment has not been made or for which mechanics’ liens could be filed and that to Seller’s knowledge there are no other unrecorded interests in the Property. (3) FIRPTA Affidavit. A non-foreign affidavit, properly executed and in recordable form, containing such information as is required by IRC Section 1445(b)(2) and its regulations. (4) Executive Order Affidavit. An affidavit properly executed satisfying Buyer and Title Company that the Seller is not a blocked person under Executive Order 13224. (5) Relocation Waiver. A fully executed copy of the Relocation Waiver. (6) Storage Tanks. If required, an affidavit with respect to storage tanks pursuant to Minn. Stat. § 116.48. (7) Well Certificate. If there is a well located on the Property, a well disclosure certificate in form and substance true to form for recording. (8) Other Documents. All other documents reasonably determined to be necessary to transfer the fee interest in the Property to Buyer in the manner specified herein. 6 228340v2 (9) Settlement Statement. A closing or settlement statement reflecting the financial provisions of the Closing, consistent with the provisions of this Agreement (the “Settlement Statement”). (b) Buyer’s Closing Documents. On the Closing Date, Buyer shall execute and/or deliver to Seller the following: (1) Purchase Price Payment. Payment of the Purchase Price in immediately available funds to the Title Company for disbursement pursuant to the Settlement Statement. (2) Title Documents. Such Affidavits of Buyer, Certificates of Real Estate Value or other documents as may be reasonably required by Title Company to record the Seller’s Closing Documents. (3) Settlement Statement. The Settlement Statement. 17. Prorations. Seller and Buyer agree to the following prorations and allocation of costs regarding this Agreement: (a) Closing Fees. Buyer shall pay the Title Company’s closing fee or charge. (b) Real Estate Taxes and Special Assessments. General real estate taxes and installments of special assessments payable therewith (“Taxes”) due and payable in the year prior to the year in which the Closing Date occurs and all prior years shall be paid by Seller. Unless otherwise paid pursuant to any leases of the Property, Taxes and special assessments due and payable in the year in which the Closing Date occurs shall be prorated between Seller and Buyer as of the Closing Date. Buyer shall assume the obligation to pay the Taxes and installments of special assessments due and payable in the year subsequent to the year in which the Closing Date occurs and thereafter. (c) Deferred Real Estate Taxes. Seller shall pay on Date of Closing or provide for payment of any deferred real estate taxes (including “Green Acres” taxes under Minn. Stat. § 273.111) payment of which is required as a result of the Closing of this sale and the recording of the Deed. Provision for payment shall be by payment into escrow of 1.5 times the estimated payoff amount of the deferred taxes. (d) Certified Special Assessments. All installments of special assessments certified for payment with the real estate taxes payable in the year of Closing shall be paid by Seller at Closing. (e) All Other Levied Special Assessments. Seller shall pay on the Date of Closing all other special assessments levied as of the date of this Purchase Agreement. (f) Recording Costs. Buyer will pay the state deed tax. Seller will pay the cost of recording all documents necessary to place record title in the condition warranted and 7 228340v2 represented by Seller in this Agreement. Buyer shall pay the cost to record the Warranty Deed. (g) Other Costs. All other utilities, fees, costs, expenses, operating costs of the Property and any other expenses shall be prorated between Seller and Buyer as of the Closing Date. (h) Attorneys’ Fees. Each of the parties will pay its own attorneys’ fees, except that a party defaulting under this Agreement or any closing document will pay the reasonable attorneys’ fees and court costs incurred by the non-defaulting party to enforce its rights regarding such default. 18. Property Condition. Seller agrees to maintain the Property in its current condition, subject to ordinary wear and tear, from the time this Agreement comes into effect until the Closing. Buyer is required to perform their own inspections, tests, and investigations to verify any information provided by the Seller. Afterward, the Buyer shall submit copies of all tests and reports to the Seller at no cost. (a) Buyer shall hold the right to hire licensed contractors, or other qualified professionals, to further inspect and investigate the Property until February 29, 2024, at 4:00 PM. Property investigations will require 24-hour prior notice from Buyer to Seller. (b) After all inspections are completed, Buyer shall have until March 6, 2024, at 4:00 PM to present any new property disclosures to the Seller in writing. The Buyer and Seller shall have ten (10) business days to reach an agreement over any new property disclosures found by the Buyer. If the Parties cannot come to an agreement, this Agreement shall be terminated. (c) If the Buyer fails to have the Property inspected or does not provide the Seller with written notice of the new disclosures on the Property, in accordance with this Agreement, Buyer hereby accepts the Property in its current condition. (d) In the event improvements on the Property are destroyed, compromised, or materially damaged prior to Closing, the Agreement may be terminated at Buyer’s option. 19. Broker’s Commission. Seller and Buyer represent to each other that they have dealt with no brokers, finders or the like in connection with this transaction, and agree to indemnify each other and to hold each other harmless against all other claims, damages, costs or expenses of or for any fees or commissions resulting from their separate actions or agreements regarding the execution or performance of this Agreement, and will pay all costs of defending any action or lawsuit brought to recover any such fees or commissions incurred by the other party, including reasonable attorneys’ fees. 20. Assignment. Neither party may assign its rights under this Agreement without the prior written consent of the other party. 8 228340v2 21. Remedies. If Seller has performed or are ready, willing and able to perform all obligations required by this Agreement and Buyer shall fail or refuse to perform this Agreement within the time and in the manner provided, then Seller’s sole remedy shall be the right to terminate this Agreement by giving a 30-day written notice to Buyer pursuant to Minnesota Statutes section 559.21, as it may be amended for time to time. If Buyer fails to cure such default within thirty (30) days of the date of such notice, this Agreement will terminate. Upon termination, parties shall have no further rights and obligations hereunder other than those rights and/or obligations which are expressly stated to survive expiration or termination of this Agreement. If Buyer has performed or is ready, willing and able to perform all obligations required by this Agreement and Seller shall fail or refuse to perform this Agreement within the time and in the manner provided, then Buyer, at its option may terminate this Agreement by giving written notice thereof to Seller, in which case the parties shall have no further rights and obligations hereunder other than those rights and/or obligations which are expressly stated to survive expiration or termination of this Agreement. 22. Notices. Any notices required or permitted to be given hereunder shall be in writing and shall be effective: (i) when delivered personally, (ii) when received by overnight courier service or electronic (e-mail) communications (provided that a copy of such notice is deposited in the United States mail within one (1) business day of the email transmission), or (iii) three (3) days after being deposited in the United States Mail (sent certified or registered, return receipt requested), in each case addressed as follows (or to such other address as the parties hereto may designate in the manner set forth herein): If to Buyer: Economic Development Authority for the City of Prior Lake, Minnesota 4646 Dakota St. SE Prior Lake, MN 55372 Attn: Casey McCabe Email: cmccabe@PriorLakeMN.gov with a copy to: Campbell Knutson, P.A. Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, MN 55121 Attn: David Kendall Email: dkendall@ck-law.com If to Seller: Paul Johnson 4556 Colorado Street SE Prior Lake, MN 55372 Email: empirenewsllc@hotmail.com 23. Entire Agreement; Modification. This written Agreement constitutes the complete agreement between the parties and supersedes any prior oral or written agreements between the parties regarding the Property. There are no verbal agreements that change this Agreement and no waiver of any of its terms will be effective unless in a writing executed by the parties. 9 228340v2 24. Binding Effect. This Agreement binds and benefits the parties and their successors and assigns. 25. Controlling Law. This Agreement has been made under the laws of the State of Minnesota, and such laws will control its interpretation. 26. Counterparts. This Agreement may be executed separately and independently in any number of counterparts and each and all of which together shall be deemed to have been executed simultaneously and regarded as one agreement dated the Effective Date. [Signature Page Follows] 10 228340v2 IN AGREEMENT, Seller and Buyer have executed this Agreement as of the date first written above. SELLER: Paul Johnson By: Paul Johnson BUYER: Economic Development Authority for the City of Prior Lake, Minnesota By: Kimberly Prchal Its: President And By: Jason Wedel Its: Executive Director DRAFTED BY: City of Prior Lake 4646 Dakota Street SE Prior Lake, Minnesota 55372 228340v2 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY Lot 3 and the west 20 feet of Lot 2, all in Block 16, in the Village of Prior Lake, Scott County, Minnesota. Parcel ID: 250011230 Commonly known as: 4556 Colorado Street, SE, Prior Lake, MN 55372 228340v2 EXHIBIT B Agreement Regarding Release, Payment, and Assignment of Relocation Benefits THIS AGREEMENT REGARDING WAIVER AND ASSIGNMENT OF RELOCATION BENEFITS (this “Agreement”) is made as of , 2024, by and between Paul Johnson (“Seller”), and the Economic Development Authority for the City of Prior Lake, Minnesota, a Minnesota municipal corporation (“Buyer”). RECITALS: Seller and Buyer entered into a purchase agreement (the “Purchase Agreement”) dated as of , 2024, related to property located at 4556 Colorado Street, SE, Prior Lake, MN 55372 and legally described as, Lot 3 and the west 20 feet of Lot 2, all in Block 16, in the Village of Prior Lake, Scott County, Minnesota (Parcel ID: 250011230). Seller has been advised of its rights and payments that Seller may be eligible to receive pursuant to the Uniform Relocation Assistance Act (the “Act”), including payments for Minimum Compensation under Minn. Stat. § 117.87 and moving costs under Minn. Stat. § 117.52. Seller acknowledges it has had the opportunity to seek and receive the independent advice of legal counsel, specifically with respect to relocation, moving, reestablishment, and other costs that may be available to the Seller under the Act. Seller and Buyer desire to enter into this Agreement to confirm their understanding of the Seller’s release, sale and assignment of any claim for any relocation benefits and/or other relocation costs due or payable to Seller, whether pursuant to the Act or otherwise. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto do hereby agree as follows: 1. Effective as of the date hereof, Seller hereby acknowledges that the sale of the Property is a voluntary sale and does not include payment for Relocation Benefits and Minimum Compensation Benefits and hereby releases Buyer from any liability for payment of additional relocation payments pursuant to the Act (or other federal or state law provisions) with respect to the Property. 2. Effective as of the date hereof, Seller hereby sells, transfers, and assigns to Buyer any benefits, payments, claims, or other rights due or payable to Seller pursuant to the Act (or other federal or state law provisions) with respect to the Property. 3. Seller acknowledges that it has freely waived such rights of its own volition. 4. Seller acknowledges that it has waived such rights with full knowledge of the specific relocation benefits to which it would otherwise be entitled. 228340v2 5. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. 6. This Agreement shall be null and void if the Purchase Agreement shall terminate or if Closing under the Purchase Agreement shall fail to occur for any reason. IN WITNESS WHEREOF, this Waiver of Relocation Benefits Agreement has been executed by the parties hereto as of the day and year first above written. SELLER: Paul Johnson By: Paul Johnson BUYER: Economic Development Authority for the City of Prior Lake, Minnesota By: Kimberly Prchal Its: President And By: Jason Wedel Its: Executive Director DRAFTED BY: City of Prior Lake 4646 Dakota Street SE Prior Lake, Minnesota 55372 228340v2 EXHIBIT C LEASE AGREEMENT Page 1 of 6 228422v1 Fixed-Term Residential Lease 1. Identification of Landlord and Tenant This Fixed-Term Residential Lease (“Agreement”) is entered into between the Economic Development Authority for the City of Prior Lake (“Landlord”) and Paul Johnson ("Tenant"). 2. Identification of Premises Subject to the terms and conditions in this Agreement, Landlord rents to Tenant, and Tenant rents from Landlord, for residential purposes only, the premises located at 4556 Colorado Street SE, Prior Lake, MN 55372, ("the premises"). The premises are further defined to include the residence, detached garage, and surrounding yard areas in the immediate vicinity of the residence. 3. Limits on Use and Occupancy The premises are to be used only as a private residence for Tenant and Tenant’s immediate family. 4. Term of the Tenancy The term of the rental will begin on March 20, 2024, and expire on June 30, 2024. 5. Renewal Term Provided Tenant is not in default under the terms and conditions of this Lease Agreement, the Lease Term may be renewed by mutual agreement of both parties on a month-to-month basis. 6. Payment of Rent Regular monthly rent. Tenant will pay to Landlord a monthly rent of $850.00, payable in advance on the first day of each month, except when that day falls on a weekend or legal holiday, in which case rent is due on the next business day. Rent may be paid by mail or in person. Rent will be paid to the City of Prior Lake, Attn: Finance Department, 4646 Dakota Street SE, Prior Lake, MN 55372 or at such other place as Landlord designates. Form of payment: Landlord will accept payment in these forms: [X] personal check made payable to: City of Prior Lake [X] cashier's check made payable to: City of Prior Lake Landlord agrees to reimburse a portion of the rent upon expiration of the Lease Agreement subject to the terms of paragraph 10. 7. Late Charges If Tenant fail to pay the rent in full before the end of the 5th day after it's due, Tenant will pay Landlord a late charge of $50.00, plus $10.00 for each additional day that the rent remains unpaid. The total late charge for any one month will not exceed $200.00. Landlord does not Page 2 of 6 228422v1 waive the right to insist on payment of the rent in full on the date it is due. 8. Returned Check and Other Bank Charges If any check offered by Tenant to Landlord in payment of rent or any other amount due under this Agreement is returned for lack of sufficient funds, a "stop payment," or any other reason, Tenant will pay Landlord a returned check charge of $50.00. 9. Utilities Tenant is responsible for all utility and home and property maintenance charges including, but not limited to, snow removal, lawn maintenance, trash collection, personal property insurance, gas, electric, telephone, sewer, and water. Tenant is accepting the property in as- is condition and agrees to be responsible for all repairs and replacement of any utilities, appliances, roof, siding, plumbing, electrical, HVAC systems, water heater, water softener, etc. 10. Reimbursement of Rent Landlord agrees to reimburse Tenant 50% of the total rent payment received over the Term of Tenancy upon satisfaction of all the following conditions: i) expiration of the Lease Term; ii) removal of all personal property from the premises; and iii) payment of all outstanding invoices for utilities and other services due. To the extent any of these conditions are not satisfied at the time of expiration of the lease term, Landlord shall utilize rent payments received and proportionally reduce the amount of Tenant reimbursement for removal of personal property from the premises and payment of outstanding invoices for utilities and other services due, if any. In the event all outstanding invoices for utilities and other services are paid in full and all personal property is removed from the premises, Tenant shall receive the full reimbursement of 50% of total rent payment received by Landlord. 11. Property Taxes Landlord will be responsible for payment of property taxes. 12. Assignment and Subletting Tenant shall not sublet any part of the premises or assign this Agreement. 13. Tenant Maintenance Responsibilities Tenant will: (1) keep the premises clean, sanitary, and in good condition and, upon termination of the tenancy, return the premises to Landlord in a condition identical to that which existed when Tenant took occupancy, except for ordinary wear and tear; (2) recycle or dispose of trash in the containers provided for those purposes; (3) immediately notify Landlord of any defects or dangerous conditions in and about the premises of which Tenant becomes aware; (4) promptly notify Landlord of any other conditions reasonably requiring repair which are in and about the premises and of which Tenant becomes aware; and (5) reimburse Landlord, on demand by Landlord, for the cost of any repairs (including plumbing work) to the premises damaged by Tenant or Tenant's guests or business invitees through misuse or neglect. Tenant accepts the premises, including appliances, fixtures, carpets, Page 3 of 6 228422v1 drapes, and paint, in as-is condition. 14. Violating Laws and Causing Disturbances Tenant is entitled to quiet enjoyment of the premises. Tenant and guests or invitees will not use the premises or adjacent areas in such a way as to: (1) violate any law or ordinance, including laws prohibiting the use, possession, manufacture, or sale of controlled substances, laws prohibiting prostitution or prostitution-related activity, and laws prohibiting the unlawful use or possession of a firearm; (2) commit waste (severe property damage); (3) create a nuisance by annoying, disturbing, inconveniencing, or interfering with the quiet enjoyment and peace and quiet of any other Tenant or nearby resident; (4) use or store in or near the premises any hazardous substances, as defined by federal, state, and local law; or (5) cause a cancellation, restriction or increase in premium in Landlord's insurance. The following notice is required by Minnesota Statutes, Section 504B.305: A seizure under Minnesota Statutes, Section 609.5317, Subdivision 1, for which there is not a defense under Minnesota Statutes, Section 609.5317, Subdivision 3, constitutes unlawful detention by Tenant. 15. Landlord's Right to Access Landlord or Landlord's agents may enter the premises in the event of an emergency, or to make repairs or improvements. Landlord may also enter the premises to conduct an annual inspection to check for safety or maintenance problems. Except in cases of emergency, Tenant's abandonment of the premises, court order, or where it is impractical to do so, Landlord shall give Tenant 24 hours’ notice before entering. 16. Possession of the Premises a. Tenant's failure to take possession. If, after signing this Agreement, Tenant fails to take possession of the premises, Tenant will still be responsible for paying rent and complying with all other terms of this Agreement. b. Landlord's failure to deliver possession. If Landlord is unable to deliver possession of the premises to Tenant for any reason not within Landlord's control, including, but not limited to, partial or complete destruction of the premises, Tenant will have the right to terminate this Agreement upon proper notice as required by law. In such event, Landlord's liability to Tenant will be limited to the return of all sums previously paid by Tenant to Landlord. c. Eminent Domain. If the whole or any part of the premises is taken through eminent domain, the term of this Agreement shall cease on the date of taking and the rent shall be paid up to that day. d. Fire or Other Casualty. If the premises are destroyed by fire or other casualty, either party may terminate this Agreement provided notice of termination is given within thirty (30) days of the destruction. If the premises are damaged by fire or other casualty and this Agreement is not terminated, Landlord shall restore the premises to as near the condition which existed Page 4 of 6 228422v1 immediately prior to such damage or destruction as reasonably possible, and rent shall abate during such period as the premises is untenable, in the proportion that the untenable portion of the premises bears to the entire premises. 17. Insurance Tenant acknowledges that Landlord’s insurance does not cover personal property damage caused by fire, theft, rain, war, acts of God, acts of others, and/or any other causes, nor shall Landlord be held liable for such losses. Tenant is hereby advised to obtain insurance to cover any personal losses. 18. Payment of Court Costs and Attorney Fees in a Lawsuit In any action or legal proceeding to enforce any part of this Agreement, the prevailing party shall recover reasonable attorney fees and court costs. 19. Notice All notices required to be given under this Agreement shall be in writing and shall be deemed delivered if personally delivered or dispatched by certified or registered mail, return receipt requested, postage prepaid, addressed as follows: If to Landlord: City of Prior Lake EDA Attn: Casey McCabe 4646 Dakota St SE Prior Lake, MN 55372 If to Tenant: Paul Johnson 4556 Colorado Street SE Prior Lake, MN 55372 20. Additional Provisions Upon vacating, Tenant must give Landlord a forwarding address. 23. Validity of Each Part If any portion of this Agreement is held to be invalid, its invalidity will not affect the validity or enforceability of any other provision of this Agreement. 24. Grounds for Termination of Tenancy The failure of Tenant or Tenant's guests or invitees to comply with any term of this Agreement, or the misrepresentation of any material fact on Tenant's rental application, is grounds for termination of the tenancy, with appropriate notice to Tenant and procedures as required by law. Landlord may, at its sole option: 1. Demand in writing that Tenant immediately gives up possession of the premises. If Tenant does not give up possession, Landlord may bring an eviction (unlawful detainer) action. Page 5 of 6 228422v1 2. Demand in writing that Tenant gives up possession of the premises at a certain future date. If Tenant does not give up possession on that date, Landlord may bring an eviction (unlawful detainer) action. Landlord's acceptance of rent for the period up to the date possession is to be transferred does not waive Landlord's right to evict Tenant. 3. Bring an eviction (unlawful detainer) action immediately. 25. Limitation of Landlord’s Liability Landlord is not responsible for any bodily injury or property damage that was not caused by a willful or negligent act, or willful or negligent failure to act, of Landlord. 26. Subordination This Agreement is subordinate to any mortgage against the premises. No new owner or lender shall disturb Tenant's occupancy but shall have Landlord's remedies if Tenant defaults. Tenant shall sign all documents reasonable requested by Landlord. 27. Non-Waiver Either Landlord or Tenant may use any or all of its legal rights and remedies. The use of one or more rights or remedies is not an election of remedies or a waiver of any remedy. 28. Entire Agreement This document constitutes the entire Agreement between the parties, and no promises or representations, other than those contained here and those implied by law, have been made by Landlord or Tenant. Any modifications to this Agreement must be in writing signed by Landlord and Tenant. (SIGNATURE PAGE FOLLOWS) Page 6 of 6 228422v1 IN WITNESS WHEREOF, Landlord and Tenant, respectively, have duly signed this Agreement, the day and year first above written. Tenant: Paul Johnson By: Paul Johnson Landlord: Economic Development Authority for the City of Prior Lake By: Jason Wedel Its: Executive Director 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 24-01 EDA RESOLUTION APPROVING THE PURCHASE OF PROPERTY AT 4556 COLORADO STREET SE AND AUTHORIZING THE EDA PRESIDENT AND EXECUTIVE DIRECTOR TO EXECUTE THE PURCHASE AGREEMENT Motion By: Second By: WHEREAS, WHEREAS, WHEREAS, WHEREAS, The property owner at 4556 Colorado Street SE, PID 250010570 (“Property”) is interested in selling their Property and the Prior Lake Economic Development Authority (“EDA”) is interested in purchasing the Property; and Prior Lake city staff has prepared a Real Estate Purchase Agreement (“Agreement”), which has been reviewed and agreed to by the property owner which identifies a sale price of $246,600 and a closing date of March 20, 2024; and Identifying strategic property acquisitions in the downtown area is a strategic initiative in the City of Prior Lake 2023-2026 Strategic Plan; and The Prior Lake Economic Development Authority finds acquisition of the Property will facilitate future redevelopment in downtown Prior Lake. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY as follows: 1. The recitals set forth above are incorporated herein. 2. Funding necessary for the property acquisition, together with all Buyer related costs identified in the Agreement, will come from the EDA Special Revenue Fund, Projects – Property and Right of Way Acquisition (240-46500.00-55040.00). 3. The EDA President and Executive Director are authorized to execute the Agreement and any documents necessary to close the transaction. PASSED AND ADOPTED THIS 12th DAY OF FEBRUARY 2024. VOTE Prchal Braid Marco Briggs Boucher- Hoese Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ ______________________________ Jason Wedel, Executive Director 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2024 AGENDA #: 9B PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: 2024-2028 Arts and Culture Committee Strategic Plan Update DISCUSSION: Introduction The Arts and Culture Committee (ACC) has updated their five-year Strategic Plan, which provides a framework for the planning and funding of future public art installations throughout the community. Current Circumstances The purpose of the Strategic Plan is to identify specific projects to be completed over the next five years. By approving the Strategic Plan, the EDA is supporting the goals identified by the ACC and authorizing them to pursue the identified projects. The intent of the ACC is to evaluate and update this plan annually as projects are completed and priorities change. The plan will help ensure funds are availa- ble when projects are anticipated. The plan is an important tool to maintain and provide consistent investment in public art in the community and is a critical el- ement of responsible fiscal management. Conclusion The attached 2024-2028 Strategic Plan identifies short- mid- and long-term ACC priorities along with anticipated funding needs and funding sources to implement the projects. EDA members are encouraged to discuss any projects they do not feel should be identified and the plan and share ideas for other priorities that may not be included. ALTERNATIVES: RECOMMENDED MOTION ATTACHMENT: 1. Motion and a second to approve the Arts and Culture Committee 2024-2028 Strategic Plan. 2. Provide direction to staff and the ACC and defer action on this item to a future meeting date. Alternative No. 1 1. ACC 2024-2028 Strategic Plan ARTS AND CULTURE COMMITTEE (ACC) 2024-2028 STRATEGIC PLAN Adopted February 12, 2024 by the PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY Kim Prchal, Chair Marie Boucher-Hoese, Vice Chair Tim Marco Kirt Briggs Zach Braid ARTS AND CULTURE COMMITTEE Erin Belanger-Braid, Chair Alejandra Pelinka, Vice Chair Cassandra Bryant, Secretary Jeanine Bigalk Lavonne Augustson Patty Dronen Marie Boucher-Hoese 1 TABLE OF CONTENTS Page 2 Public Art Criteria Page 2 Public Art Procedures Page 5 Short-Term (2024) Strategic Priorities This section provides a brief description of individual projects, identifies anticipated costs and funding sources for each project. Page 7 Mid-Term (2025-2027) Strategic Priorities This section provides a brief description of individual projects, identifies anticipated costs and funding sources for each project. Page 8 Long-Term (2028+) Strategic Priorities This section provides a brief description of individual projects the ACC intends to explore in the future. 2 Public Art Criteria • Artwork should be focused in highly trafficked areas for public viewing with a concentration on downtown plazas, city parks, community gathering spaces and municipal buildings. • Promote public spaces by encouraging a sense of ownership and pride within the community. • Enhance the physical and natural environment and encourage activity, relaxation, or contemplation of nature through the process of creative thought. • Exemplify the highest degree of social awareness, intellectual pursuit, ingenuity, and creative ability the community has to offer. • The artwork should be designed to promote longevity and be maintained within standard City, or appropriate party, maintenance procedures and cycles. Public Art Procedures The following is a process for determining project sites and which projects should receive support from the Arts and Culture Committee and/or EDA Budget. Project and site selection decisions are also contingent upon available staffing and funding. Project Selection • Project brings with it a specific need or an area where artwork is desired. Requests may be made by the private, public, or business community for artwork in specific locations on City property. • Commemorative events or memorials may also initialize projects. • Public Art pieces should be based on a standard set of guidelines including: o Representation – Does the artwork represent a notion or idea valued by sectors of the community? o Historical – Does the artwork have historical value? o Impact – Does the artwork have emotional, inspirational, or intellectual impact? o Budgetary – The purchase price, transportation, installation, and maintenance of the piece must be considered. o Technicality – Is the design technically feasible? o Creativity – Is the design visionary and creative? o Quality – Is the work the highest quality? Site Selection • The appropriateness of the artwork to the site and the site to the artwork are basic considerations. Site location shall be determined by its accessibility to the public. • Proposed sites shall be presented to the Economic Development Authority after receiving contributing opinions from directly related City Departments and their representatives. Artist Selection • Artists are selected with three (3) criteria in mind: o Appropriateness: Artist(s) are selected based on the appropriateness of their proposal to the project. o Communication: The artist(s) must have the ability to clearly communicate concepts both visually and through clearly written materials. o Performance: Does the artist(s) have a good professional history of being able to work cooperatively and finish projects on time? 3 Artist Selection Process • Finding the right artist for a project is the highest priority. The standard artist selection process is designed to ensure only the highest quality, skilled and appropriate professionals are chosen and utilizes a six (6) step process: o The goals of the project must be clearly defined. o Calls to artists are placed on the City of Prior Lake website, local and regional media, and social media accounts. o Staff reviews initial submissions for completeness and provides the Arts and Culture Committee with the most appropriate proposals for their review. o The Arts and Culture Committee reviews and narrows down the selection. o The finalists present a more developed proposal to the Arts and Culture Committee. o The Arts and Culture Committee presents the final selection to the Economic Development Authority for approval. • There are several types of art and artist selection processes: Open competitions, limited competitions, invitational, direct selection, mixed process, and direct purchase. o Open competitions Following public announcement of a project any artist or organization may submit proposals, as indicated by the notification. The competition is a two (2) step process in which initial proposals are submitted and narrowed, then followed by a second request to submit a more developed proposal. o Limited competitions The limited competition is defined by certain parameters. For example, the guidelines may define that the artist or organization must reside within a prescribed number of miles of the City or work only in a specific medium. o Invitational One or more artists may be invited to submit proposals for a specific project. o Direct selection An artist or design team is selected directly for a Public Art project. This process is enacted only during circumstances which deem other processes impractical such as time constraints or very particular project requirements. o Mixed selection This is a two-fold process that combines any two of the previously mentioned processes. o Direct purchase A completed piece of work is purchased for a specific site or project. Permanent Collections • Focus on local artisans. • Artworks in a collection with a reputation for high standards and quality often reflect positively on artists in the collection, local artists working in the community, as well as private citizens in the community. 4 • The EDA and City Council shall approve all artworks proposed to be included in the permanent collection. • Acquisition may be made by purchase, gift, or donation. o Purchase ▪ May be acquired because of an art in public space initiative derived from public or private construction as well as Public Works projects. ▪ May require a signed contract between artist/fabricator, in agreement with the City of Prior Lake. ▪ Typically, a direct purchase, but could also be via open and limited competitions and invitations. o Gift ▪ May be gifted by local, national, and international artists or friends and families of artists who have impacted the community. ▪ A gift shall be accepted by the EDA and City Council. o Donation ▪ Often a donation from outstanding citizens or an organization wanting to share with the community the personal enjoyment a work of art has given them. 5 Short-Term (2024) Strategic Priorities The Arts and Culture Committee has identified the following short-term priorities the committee intends to pursue in 2024. Sidewalk Stamping /Etching – The ACC plans to install a minimum of one downtown sidewalk etching in 2024. Quotes have been selected by a community vote and the ACC will identify a contractor to complete the project in 2024. In addition, the ACC will evaluate acquiring a stamp or stamps representative of Prior Lake that can be incorporated in future projects when new sidewalks are poured. • Coordination between the ACC, EDA, City Council, Public Works, Potential Donors, Friends of the Arts PL (LaVonne, Jean, Ale) Prior Lake Themed Benches – The ACC will continue its program to have Prior Lake themed benches created and installed throughout the community. Benches will have a nautical or outdoor recreational theme. It is assumed the benches will be privately funded by civic groups or through the city’s memorial bench program. • Coordination between the ACC, EDA, City Council, Public Works, Potential Donors, Friends of the Arts PL (Marie, Erin, Cassie) Prior Lake Community Artist Program – The ACC will draft an RFQ to identify a Community Artist to complete and install a public art sculpture in the downtown area related to the history of Prior Lake. • Coordination between the ACC, EDA, City Council, Friends of the Arts PL (Ale, Cassie) Promotion of Prior Lake Association Photo Contest Winners – In partnership with the Prior Lake Association, work to enhance the annual photo contest through promotion and display of the winning photographs. • Coordination between the ACC, Prior Lake Association (Jean, Patty with assistance from Kathy Dawson) Support Community Arts (ChalkFest, Pleasant St. Art Walk, Civic Groups, Music Events, Etc.) – The ACC will support existing community art events, including the Pleasant Street Art Walk, to ensure their continued success. • Coordination between the ACC, EDA, City Council, Public Works/Recreation, Potential Donors Supporting Community Arts (Marie, Patty) Educational Signage and Historical Markers (Sand Point and/or Watzl’s Beach/public boat launches) – The ACC will work with the Shakopee Mdewakanton Sioux Community and the City of Prior Lake to encourage educational displays around the community that provide historical information and the original Native American names for local points of interest. It is anticipated the initial efforts in this area will focus on Upper and Lower Prior Lake with educational displays at Watzl’s Beach and/or Sand Point Beach and/or public boat launches. • Coordination between the ACC, EDA, City Council, Public Works, SMSC or Other Donors (Cassie, Ale, Patty) 6 Incorporation of Arts Component in New Construction – ACC members will work with City staff to evaluate options to encourage public art components in new multi-family and commercial construction projects. • Coordination between the ACC, EDA, City Council, Community Development Staff, Developers (Ale, Marie, Erin) “Friends of Arts” type Non-Profit Formation – ACC members formalize the establishment of a non-profit organization for the purpose of fundraising and soliciting donations for future public art projects throughout the community. • Coordination between the ACC, EDA, Non-Profit Organization (Erin, Jean, LaVonne, Cassy) Below are the 2024 anticipated expenditures along with the source and use of the funds. Project Est. Cost 2024 Expenditure ACC Fund City of Prior Lake Other / Private Donations Sidewalk Stamping / Etching $2,500/per $3,000 $500 $0 $2,500 Prior Lake Themed Bench $2,000/per $2,000 $0 $0 $2,000 Prior Lake Community Artist Program $10,000 $10,000 $10,000 $0 $0 Promotion of Prior Lake Association Photo Contest Winners $500 $500 $0 $0 $500 Support Community Arts $500 $500 $500 $0 $0 Dakota Educational Signage and Historical Markers $1,000 $1,000 $0 $0 $1,000 Incorporation of Arts Component in New Construction $0 $0 $0 $0 $0 “Friends of Arts” type Non-Profit Formation $45,004,812 $4,812 $4,812 $0 $0 Total $21,812 $15,812 $0 $6,000 Funding Source 7 Mid-Term (2025-2027) Strategic Priorities CH21 Wagon Bridge Mural – The ACC will utilize the community artist program to identify an artist or artistes to complete a large-scale mural on and under the CH21 Wagon Bridge. • Coordination between the ACC, EDA, City Council, Scott County, Potential Donors Sidewalk Stamping /Etching – The ACC will continue the installment of sidewalk quotes throughout the community and will evaluate stamping as a opposed to etching in an effort to reduce costs. • Coordination between the ACC, EDA, City Council, Public Works, Potential Donors Prior Lake Themed Bench – The ACC will continue its program to have Prior Lake themed benches created and installed throughout the community. Benches will have a nautical or outdoor recreational theme. It is assumed the benches will be privately funded by civic groups or through the city’s memorial bench program. • Coordination between the ACC, EDA, City Council, Public Works, Potential Donors Promotion of Prior Lake Association Photo Contest Winners – In partnership with the Prior Lake Association, continue work to enhance the annual photo contest through promotion and display of the winning photographs. • Coordination between the ACC, Prior Lake Association Downtown Mural/Mosaic – Explore opportunities and locations for a mural, mosaic, or combination mural/mosaic in downtown Prior Lake. • Coordination between the ACC, EDA, City Council, Potential Donors Historic Lake Tour – In partnership with the Prior Lake Association or other civic groups, create a database of historic sites on Upper and Lower Prior Lake. This will potentially involve assistance from city staff or an outside organization utilizing GIS and QR Codes so residents and visitors can learn more about history while enjoying our lakes. • Coordination between the ACC, EDA, City Council, Prior Lake Association, Kathy Dawson, Potential Donors Public Engagement Art Project – Identify an art project that involves a community engagement component [e. g. paint by numbers mural]. • Coordination between the ACC, EDA, City Council, Potential Donors Crosswalk Art – In partnership with the City, identify an artist to replace standard crosswalk striping with a more decorative and eye-catching art piece. • Coordination between the ACC, EDA, City Council, Public Works, Potential Donors 8 Long-Term (2028+) Strategic Priorities In the year 2028 and going forward, the ACC will explore additional public art installments and events, including, but not limited to: Downtown Sculpture – Identify location and funding source for a prominent sculpture in downtown Prior Lake. Cora McQuestion Days – Explore a community event to honor Prior Lake’s first female mayor (Cora McQuestion Spirt of Prior Lake Award). Lakefront Park Art – In partnership with the City, identify future art installment options and locations within Lakefront Park. Community Arts Center – Study the feasibility of a community arts center for Prior Lake. Rotating Sculpture Walk – Establish a rotating sculpture walk program within the community. Community Arts Festival – Explore a community event to promote art and culture in the community. Percent for the Arts Program – Work with the City to identify a percentage of all public street and infrastructure project costs to be used as funding to support future public art projects. Downtown Raised Planters Art – Enhance the new downtown planter beds by incorporating art. Round-A-Bout Art – A public art installation [sculpture, painting, or other] in one or more of the City round- a-bouts. 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2024 AGENDA #: 9C PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: 2024 Arts and Culture Committee Prior Lake Community Artist RFQ DISCUSSION: Introduction The purpose of this agenda item is to consider approval of the attached 2024 Prior Lake Community Artist request for qualifications (RFQ). Current Circumstances The City of Prior Lake’s Arts and Culture Committee has prepared an RFQ to invite experienced public artists or teams to submit qualifications to become the Prior Lake Community Artist in 2024. The selected artist will develop an outdoor public art sculpture that reflects the history of Prior Lake. The selected Prior Lake Community Artist will: • Research and consider the local history of Prior Lake while developing project design. The concept can consider, for example: a historical event, theme, person, culture, or moment. • Provide a conceptual design for the sculpture, with up to three revisions, for approval by the Committee. • Identify a preferred location(s) for the artwork. The City will initially pro- vide potential locations, and will review and approve Artist’s desired lo- cation(s). • Fabricate and install a permanent public artwork sculpture in downtown Prior Lake, this may include one piece or multiple small-scale pieces. All mediums will be considered. The artwork should have a minimum life span of 10 years and require minimal maintenance. • Participate in promotional videos, materials, interviews, etc. to document and promote the artwork. The total budget for this project is $10,000, which is all-inclusive and intended to cover all expenses and fees related to the construction and installation of public artwork(s). Including but not limited to research, design development and revisions, fabrication, engineering, installation, foundations, site preparations, site visits, transportation of artwork, insurance, permit fees, and other related expenses. Conclusion Prior to the ACC posting the RFQ, the EDA should review the attached docu- ment, provide any comments or suggested revisions, and approve the docu- ment. 2 ALTERNATIVES: RECOMMENDED MOTION ATTACHMENT: 1. Motion and a second to approve the Prior Lake Community Artist request for qualifications. 2. Provide direction to staff and the ACC and defer action on this item to a future meeting date. Alternative No. 1 1. 2024 Prior Lake Community Artist RFQ 1 | P a g e 2024 Prior Lake Community Artist Request for Qualifications (RFQ) The City of Prior Lake’s Arts and Culture Committee invites experienced public artists or teams to submit qualifications to become the Prior Lake Community Artist in 2024. The selected artist will develop an outdoor public art sculpture that reflects the history of Prior Lake. The selected Prior Lake Community Artist will: • Research and consider the local history of Prior Lake while developing project design. The concept can consider, for example: a historical event, theme, person, culture, or moment. • Provide a conceptual design for the sculpture, with up to three revisions, for approval by the Committee. • Identify a preferred location(s) for the artwork. The City will initially provide potential locations, and will review and approve Artist’s desired location(s). • Fabricate and install a permanent public artwork sculpture in downtown Prior Lake, this may include one piece or multiple small-scale pieces. All mediums will be considered. The artwork should have a minimum life span of 10 years and require minimal maintenance. • Participate in promotional videos, materials, interviews, etc. to document and promote the artwork. Eligibility: To be considered for this RFQ, the artist or team must meet the following criteria: • Is 18 years or older, and a resident of Minnesota, preferably with a connection to Prior Lake and/or Scott County. • Have completed at least one commissioned outdoor public art piece with a similar budget in the past ten years. Final Project Budget - $10,000 The total budget for this project is $10,000, which is all-inclusive and intended to cover all expenses and fees related to the construction and installation of public artwork(s). Including but not limited to: research, design development and revisions, fabrication, engineering, installation, foundations, site preparations, site visits, transportation of artwork, insurance, permit fees, and other related expenses. RFQ deadline: March 26, 2024, 11:00 PM CST E-mail all materials in ONE PDF package to Casey McCabe, cmccabe@priorlakemn.gov HOW TO APPLY Selection process RFQ – Submit by March 26, 11:00 PM Central Standard Time E-mail all materials in ONE PDF package to Casey McCabe, cmccabe@priorlakemn.gov. Documents may be submitted in the following formats: Microsoft Word, PDF, JPEG, or a link to a Google drive or Dropbox. Please name your documents with the document description and your name, i.e. “Resume_First Name Last Name.” • One-page letter describing interest in the project, your artwork medium(s), design approach, any connection to Prior Lake or Scott County, as well as a statement addressing eligibility criteria. 2 | P a g e • One-page biographical information or resume, including your contact information (phone, email, and address). If you have multiple team members, please provide brief biographical information on each essential member but do not exceed one page. • One-page listing two references of recently completed projects. Please include contact information and commissioned amount. • Work Samples: At least three (3) and up to ten (10) images of your past and current projects. Please provide a brief description and final cost for each. • Please keep in mind this is a Request for Qualifications only, not a request for proposals or art projects. Do not submit a project proposal or design. Artist Selection – Notification by April 8, 2024 The submitted qualifications will be reviewed by a selection panel made up of Prior Lake Arts and Culture Committee members, Economic Development Authority members, and Prior Lake stakeholders. The finalist will be selected based on the following equally weighted criteria: 1. 40%: Quality of letter of interest, and an understanding of the project description and goals; 2. 40%: Quality and relevance of work samples; 3. 10%: Ability of artist/team to complete project based on prior work experience; 4. 10%: Connection to Prior Lake or Scott County; All applicants will receive notification of the panel’s decision by April 8, 2024. If the Committee receives an insufficient number of proposals, the RFQ may be rereleased or extended for further submission. Applicants will be notified if this occurs. Prior Lake Community Artist Timeline: RFQ – Released: February 13, 2024 RFQ – Proposals Due: March 26, 2024, 11:00 PM CST Selection of Artist/Team: by April 8, 2024 Selected Artist – Tentative Timeline: Research, develop artwork concept and identify location: April – May, 2024 Fabrication: June – August, 2024 Installation of public artwork(s): August – September, 2024 ADDITIONAL CONTEXT The Prior Lake Arts and Culture Committee was established in 2021. The purpose of the Arts and Culture Committee (ACC) is to serve as a liaison between City government and the art and culture organizations in the community as well as make recommendations to the Economic Development Authority (EDA) related to arts and cultural events, installations and initiatives as assigned. As a separate corporation from the city, the EDA has many powers which makes recommendations to the City Council on development plans/projects and engages in strategies which enhance the economic strength of the community. The selected Artist should consider the following Public Art Criteria in the development of the public artwork(s): • Artwork should be focused in highly trafficked areas for public viewing with a concentration on downtown plazas, city parks, community gathering spaces and municipal buildings. • Promote public spaces by encouraging a sense of ownership and pride within the community. 3 | P a g e • Enhance the physical and natural environment and encourage activity, relaxation, or contemplation of nature through the process of creative thought. • Exemplify the highest degree of social awareness, intellectual pursuit, ingenuity, and creative ability the community has to offer. • The artwork should be designed to promote longevity and be maintained within standard City, or appropriate party, maintenance procedures and cycles. PRIOR LAKE - DOWNTOWN MAP Location of future public art… The resulting public artwork(s) will be located within the downtown Prior Lake area. The City of Prior Lake is a vibrant lake community nestled in the southwest suburbs. Prior Lake offers a small town feel with the opportunities and resources typically found in a larger city. Charming downtown Prior Lake is home to many restaurants, retailers, service providers as well as offices. Downtown is also home to City Hall, Police Station, Public Library and the 130-acre Lakefront Park which offers over three miles of trails, a public beach, fishing pier, playground, sports fields, amphitheater and more. STILL HAVE QUESTIONS? We encourage interested applicants to learn more about Prior Lake by visiting www.priorlakemn.gov. It is the responsibility of the applicant to inquire about any portion of the RFQ that is not fully understood or susceptible to more than one (1) interpretation. Written inquiries are required. Oral communications will not be accepted, except to confirm delivery of proposal or written correspondence. 4 | P a g e All inquiries, questions, or clarifications must be submitted not later than seven (7) calendar days prior to the due date of this RFQ. Those inquiries, questions, or clarifications submitted after this date will not be answered. All inquiries will be responded to within three (3) business days. Please do not ask other City personnel or Arts and Culture Committee members questions, as information gathered from other sources may not reflect the correct position or interest and could result in disqualification. A Question and Answer (Q&A) addendum related to this RFQ will be updated as questions come in and can be found on the Arts and Culture Committee tab at https://www.priorlakemn.gov/government/committees- commissions. Any other questions regarding this Request for Qualifications may be directed to the contact below prior to March 19, 2024. Please direct questions to: Casey McCabe, cmccabe@priorlakemn.gov All questions concerning the RFQ must reference the page number, section heading, and paragraph. Questions may be submitted via email. Please place “Prior Lake Community Artist” in the subject line. The City of Prior Lake does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. RFQ CONSIDERATIONS & RESPONSIBILITIES OF SELECTED ARTIST/TEAM DISPOSITION OF RESPONSES (1) All materials submitted in response to this RFQ will become the property of the City and will become public record after the evaluation process is completed and an award decision made. If the Artist submits information in response to this RFQ that it believes to be trade secret materials, as defined by the Minnesota Government Data Practices Act, Minnesota Statutes 13.37, the Artist must: Clearly mark all trade secret materials in its response at the time the response is submitted by indicating in writing the specific page number(s) and paragraph(s) classified as trade secret and therefore nonpublic; and (2) Include a statement in the Letter of Interest with its response justifying the trade secret designation for each item and defend any action seeking release of the materials it believes to be trade secret, and indemnify and hold harmless the City, its agents and employees, from any judgments or damages awarded against the City in favor of the party requesting the materials, and any and all costs connected with that defense. This indemnification survives the City’s award of a contract. In submitting a response to this RFQ, the Artist agrees that this indemnification survives as long as the trade secret materials are in possession of the City. The City is required to keep all the basic documents related to its contracts, including responses to the RFQ for a minimum of seven (7) years. The City will not consider the prices submitted by the Artist to be proprietary or trade secret materials. Responses to this RFQ will not be open for public review until the City decides to pursue a contract and that contract is executed. Please note: The following information and the attached form of agreement sample are for the consideration of any interested applicant. This information is provided so that all applicants have a better understanding of their responsibilities and requirements should they be selected and contracted by the City of Prior Lake for this project. Agreement is subject to change. 5 | P a g e CONTRACT TERMS The clauses included in the sample form of agreement (Attachment A) will be included in the contract between the City and the selected Artist that has been chosen to provide the Services described herein. Any exceptions to the contract terms and conditions included in the RFQ must be identified by the selected Artist prior to contract execution. INSURANCE REQUIREMENTS Artist shall maintain insurance coverage, naming City as additional insured, as described in Attachment A. The Artist shall not commence work until all insurance has been obtained and copies have been filed and accepted by the City. The Artist shall be responsible for maintaining a valid certificate of insurance throughout the term of the Contract, as required in the sample agreement. 6 | P a g e Attachment A Sample Form of Agreement City of Prior Lake Standard Contract _______________________ This agreement (“Agreement”) is between the City of Prior Lake, Minnesota ("City"), whose business address is 4646 Dakota Street SE, Prior Lake, MN 55372, and ____________________________________________, a Minnesota ______________________ ("Contractor") whose business address is_______________________________________________________________________________ ___________________. Based on the mutual promises and covenants set forth herein, the sufficiency of which are hereby acknowledged, the City and Contractor agree as follows: 1. Scope of Work. Contractor agrees to provide, perform and complete all the materials and services in accordance with the terms of this Agreement and attached Exhibit A (“Work”). The terms of this Agreement shall take precedence over any provisions of the Contractor’s proposal and/or general conditions. If Contractor’s proposal is attached as Exhibit A, City rejects any contract terms and/or general conditions included in such proposal unless specifically agreed to by the City in writing. 2. Effective Date and Term of Agreement. The Work shall be completed by ________________________________. 3. Compensation for Services. City agrees to pay the Contractor a fixed sum of $_______________ as full and complete payment for the Work (“Contract Price”). 4. Method of Payment. Contractor shall prepare and submit to City, on a monthly basis, itemized invoices setting forth work performed and the payments requested under this Agreement. Contractor shall provide an itemized listing of all expenses and such other documentation as reasonably required by the City. Invoices submitted shall be paid in the same manner as other claims made to the City. In compliance with Minn. Stat. 471.38, by making a claim for payment, Contractor is declaring that the account, claim, or demand is just and correct and that no part of it has been paid. No claim for services furnished by Contractor not specifically provided for in Exhibit A shall be honored by the City. 5. Compliance with Laws and Regulations. In providing the Work, the Contractor shall abide by all statutes, ordinances, rules, and regulations pertaining to the Work. Any violation of statutes, ordinances, rules and regulations pertaining to the Work shall constitute a material breach of this Agreement and entitle the City to immediately terminate this Agreement. 6. Standard of Care. Contractor shall exercise the same degree of care, skill and diligence in the performance of the Work as is ordinarily exercised by members of the profession under similar circumstances in Scott County, Minnesota. 7. Condition and Inspection. All materials furnished under this Agreement shall be new and in current manufacture, unless otherwise specified, and all materials shall be of good quality, free from faults and defects and in conformance with this Agreement. Materials that are defective or not in current manufacture may be returned to the Contractor at the Contractor’s expense. 8. Insurance. A. General Liability. Contractor shall maintain a general liability insurance policy with limits of at least $1,000,000.00 for each person, and each occurrence, for both personal injury and property 7 | P a g e damage. Contractor shall provide City with a Certificate of Insurance verifying insurance coverage before providing service to the City. B. Worker's Compensation. Contractor shall secure and maintain Workers’ Compensation Insurance in accordance with the statutory requirements of the State of Minnesota. Contractor shall secure and maintain such insurance as will protect Contractor from claims under the Worker's Compensation Acts and from claims for bodily injury, death, or property damage which may arise from the performance of Contractor’s services under this Contract. 9. Indemnification. Contractor will defend and indemnify City, its officers, agents, and employees and hold them harmless from and against all judgments, claims, damages, costs and expenses, including a reasonable amount as and for its attorney’s fees paid, incurred or for which it may be liable resulting from any breach of this Agreement by Contractor, its agents, representatives, contractors and employees, or any negligent or intentional act or omission performed, taken or not performed or taken by Contractor, its agents, representatives, contractors and employees, relative to this Agreement. City will indemnify and hold Contractor harmless from and against any loss for injuries or damages arising out of the negligent acts of the City, its officers, agents or employees. 10. Termination. This Agreement may be terminated by either party by thirty days' written notice delivered to the other party at the addresses written above. Upon termination under this provision if there is no fault of the Contractor, the Contractor shall be paid for Work performed until the effective date of termination. 11. Independent Contractor. At all times and for all purposes, Contractor is an independent contractor engaged by City to perform the services described in this Agreement and Contractor shall have no authority to employ persons or make purchases on behalf of City, or otherwise bind or obligate City. No statement in this Agreement shall be construed to find the Contractor an employee of the City. 12. Assignment or Subcontract. Contractor shall not subcontract any part of the Work; nor may Contractor assign this Agreement, or any interest arising herein, without the prior written consent of the City. 13. Audit Disclosure. Pursuant to Minn. Stat. 16C.05, Subd. 5, the books, records, documents and accounting procedures and practices of the Contractor or other parties relevant to this Agreement are subject to examination by the City and either the Legislative Auditor or the State Auditor for a period of six years after the effective date of this Agreement. 14. Data Practices. Any reports, information, data, etc. given to, or prepared or assembled by the Contractor under this Agreement which the City requests to be kept confidential, shall not be made available to any individual or organization without the City's prior written approval. This Agreement is subject to the Minnesota Government Data Practice Act, Minnesota Statutes Chapter 13 (“Data Practices Act”). 15. Non-Discrimination. During the performance of this Agreement, the Contractor shall not discriminate against any employee or applicant for employment because of race, color, creed, religion, national origin, sex, marital status, status with regard to public assistance, disability, sexual orientation or age. The Contractor further agrees to comply with all aspects of the Minnesota Human Rights Act, Minnesota Statutes 363.01, et. seq., Title VI of the Civil Rights Act of 1964, and the Americans with Disabilities Act of 1990. 16. Conflicts. No salaried officer or employee of the City and no member of the Council, or Commission, or Board of the City shall have a financial interest, direct or indirect, in this Agreement. The violation of this provision renders this Agreement void. 8 | P a g e 17. Rights and Remedies. The duties and obligations imposed by this Agreement and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. 18. Damages. In the event of a breach of this Agreement by the City, Contractor shall not be entitled to recover punitive, special or consequential damages or damages for loss of business. 19. Enforcement. The Contractor shall reimburse the City for all costs and expenses, including without limitation, attorneys' fees paid or incurred by the City in connection with the enforcement by the City during the term of this Agreement or thereafter of any of the rights or remedies of the City under this Agreement. 20. Governing Law. This Agreement shall be controlled by the laws of the State of Minnesota. Venue and jurisdiction for any action, suit or proceeding arising out of this Agreement shall be only in the courts of Scott County, Minnesota or the federal courts for the United States for the District of Minnesota. 21. Entire Agreement. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 22. Severability. The provisions of this Agreement are severable. If any portion hereof is, for any reason, held by a court of competent jurisdiction to be contrary to law, such decision shall not affect the remaining provisions of this Contract. 23. Waiver. No action nor failure to act by the City or the Contractor shall constitute a waiver of any right or duty afforded any of them under this Agreement, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing. 24. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original. In witness whereof, the parties have caused this Agreement to be executed by their duly authorized agents. CITY OF PRIOR LAKE ______________________ By: _____________________________ Date Its: _____________________________ CONTRACTOR ______________________ By: _____________________________ Date Its: _____________________________ 4646 Dakota Street SE Prior Lake, MN 55372 ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT MEETING DATE: February 12, 2024 AGENDA #: 9D PREPARED BY: Casey McCabe, Community Development Director AGENDA ITEM: Potential 2024 Development Update DISCUSSION: Introduction City staff will provide an update of potential 2024 residential and commercial developments during the February 12th meeting.