July 20, 2026 - City Council Packet updated
City Council
Regular Meeting
&
Work Session
Agenda
Monday, July 20, 2026
6:00 PM or immediately following
the EDA meeting
(whichever is later)
Elk River City Hall
▪ Regular meeting in Council Chambers
▪ Work Session meeting in Upper Town Conference Room immediately following regular meeting
1. CALL MEETING TO ORDER
2. PLEDGE OF ALLEGIANCE
3. CONSIDER AGENDA
4. CONSENT AGENDA
Considered to be routine and noncontroversial and will be approved by one motion. There will be no separate discussion of
these items unless there is a request to remove the item from the consent agenda to the regular agenda.
4.1 Check Register
4.2 City and ISD 728 Ice Facility Use Agreement for ERHS
4.3 Resolution 26-49: Plat of Oakwater Ridge Yale Street, Capstone Homes - PID 75-00959-0111
4.4 Turnout Gear Dryer Award
4.5 Northbound Liquor Special Inspections and Testing Services Agreement with Braun Intertec
4.6 Post Employment Health Care Savings Plan
4.7 Remodel of Front Reception Area of Police Department
4.8 Greater MN Business Development Public Infrastructure Grant Agreement
4.9 Fabulous Armadillos
4.10 Northbound Liquor - Call for Sale of Bonds
5. OPEN FORUM
An opportunity to provide comments and feedback regarding items not on the agenda. Information provided in Open Forum
will not be discussed at this meeting; rather, the information will be referred to staff and/or scheduled for discussion at a
future meeting.
6. PRESENTATIONS, AWARDS, AND RECOGNITION
6.1 City of Elk River Volunteer of the Month
6.2 Recognize Jeff Smith for his 38 years of employment with Elk River
6.3 Retirement Recognition: Mark Dickinson
6.4 Promotion of Chad Yess to Lieutenant
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The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
6.5 Introduce Park and Recreation Framework Plan - ISG Consultants
7. PUBLIC HEARINGS
An opportunity for the public to express their opinions and raise questions pertaining to the agenda item. All comments
become part of the official public record. For this reason, all comments must be made at the podium so they can be heard
and recorded. Comments may also be provided in writing. There will not be deliberations, discussions, or answers to
questions until the hearing is closed. It is important to be courteous and allow each presenter to comment before adding
additional testimony.
7.1 Conditional Use Permit: Bluff Impacts, Randall Tesdahl - 16892 Yale St NW
7.2 Conditional Use Permit: Motor Vehicle Repair, Uval Butuc - 18332 Joplin St NW
8. GENERAL BUSINESS
Items in which the information is presented by city staff or consultants, then deliberation and action occur. General Business
items are not opportunities to receive or provide public input. However, the presiding officer may, at its sole discretion,
solicit public feedback.
9. MOTION TO ADJOURN REGULAR MEETING
10. WORK SESSION
Work Sessions are less formal meetings to encourage dialog. Official action or votes are not typically taken. At the
conclusion of a discussion, a simple consensus provides staff direction for execution of the item. This portion of the agenda
is audio recorded but not video recorded or broadcast. Work Sessions are open to the public; however, visitors who wish
to provide input must be invited by the presiding officer, assume a seat at the discussion table and provide their full name
and address for the official record.
10.1 Joint Session With Parks & Recreation Commission - PIF CIP Discussion and Framework Plan
Kickoff
10.2 Craft Updated City Mission and Vision Statements
10.3 Review and Update City Council Goals
11. MOTION TO ADJOURN
12. INFORMATION
12.1 June Financial Reports
12.2 2nd Quarter Investment Report
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The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.1
Meeting Date
July 20, 2026
Prepared By
Amy Stangler, Accounting Clerk
Item Description
Check Register
Reviewed by
Lori Stich
Joe Stremcha
Cal Portner
Justin Dunford
Action Requested
Approve, by motion, the check register for the period ending July 20, 2026.
Background/Discussion
The details for the period ending July 20, 2026, are attached to this request for action.
Total for All Funds $1,481,444.87
Financial Impact
N/A
Mission/Policy/Goal
N/A
Attachments
1. 4.2 at1 Check Register
2. 4.2 at2 Check Register
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The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.2
Meeting Date
July 20, 2026
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Item Description
City and ISD 728 Ice Facility Use Agreement for
ERHS
Reviewed by
Katie Harstad
Cal Portner
Justin Dunford
Action Requested
Approve, by motion, the City of Elk River and ISD 728 - Ice Facility Use Agreement for Elk River High School
Ice Rates 2026-27.
Background/Discussion
This agreement memorializes the FT Center policies and rate schedules for the 2026-27 high school hockey
season. ISD 728 is required to have an approved agreement to levy for payment. There are no unique or
special considerations made beyond the City Council-established rate schedule and policies available to all
user groups.
Financial Impact
▪ Practice Ice Rental Estimate = $71,500
▪ Game Ice Rental Estimate = $23,360 to $29,472 based on game package selected.
Mission/Policy/Goal
Together we win.
Attachments
1. City of Elk River and ISD 728 - Ice Facility Use Agreement for ERHS Ice Rates 2026-27
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The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.3
Meeting Date
July 20, 2026
Prepared By
Zack Carlton, Community Development Director
Item Description
Resolution 26-49: Plat of Oakwater Ridge Yale
Street, Capstone Homes - PID 75-00959-0111
Reviewed by
Cal Portner
Justin Dunford
Action Requested
Adopt, by motion, Resolution 26-49 approving the plat of Oakwater Ridge Yale Street, with the following
conditions:
1. Staff approval of all engineering, grading, utility, site, and landscape plans.
2. Park dedication shall be paid at an adjusted rate of $1,000 per lot.
3. The Water Availability Charge shall be paid prior to releasing the final plat.
4. Prior to releasing the Final Plat for recording, the developer shall furnish a boundary survey of the
proposed property to be platted with all property corner monuments in place and marked with lath
and a flag.
5. Council approval of an amended Development Contract outlining the responsibilities of the developer
and the city.
6. A letter of credit equal to 100% of the cost of the public improvements must be provided prior to
releasing the plat for recording.
7. Upon completion of all public improvements and acceptance by the city, a security or warranty in a
form acceptable to the public works director must be secured.
8. All wet stormwater basins require a 25-foot easement in accordance with setback and buffer
requirements outlined in Sec. 30-1852. The buffer must be marked with approved signs.
9. Setback lines shown on all plans must reflect the 45-foot setback required for all wet ponds.
10. The proposed temporary dead end on Yale Street must include signage stating "Future Through
Street" and a temporary cul-de-sac built to the satisfaction of the city engineer.
11. Any item or condition found that indicates the site is likely to yield information important to
prehistory or history shall be reported to the city immediately. Furthermore, the city reserves the
right to halt work authorized for its approval until the site has been properly investigated and the
work is authorized.
Background/Discussion
The applicant, Capstone Homes, is seeking approval of a plat to add two additional buildable lots within the
Oakwater Ridge development. The additional lots help the developer improve efficiency with utility and other
infrastructure improvements. Although the plat is smaller in scope, the developer is still required to meet the
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same requirements as a larger phase of the development, including park dedication and utility fees, and a
temporary cul-de-sac to provide access to the two lots being developed.
Staff recommends approval of the two-lot subdivision, subject to the conditions noted in the memo.
Financial Impact
None
Mission/Policy/Goal
Opportunity to live, work, and play.
Support the growth and development of the community.
Attachments
1. Location Map
2. Final Plat of Oakwater Ridge Yale Street
3. Final Plat Resolution
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City of Elk River
City Council
Resolution 26 - 49
A Resolution of the City of Elk River Granting Final Plat Approval for
Oakwater Ridge Yale Street
Case No. P 26-08
WHEREAS, application has been made for final plat approval, pursuant to Section
30-374 of the Elk River City Code of Ordinances, of the property legally described on
attached Exhibit A and hereinafter referred to as “the Property”; and
WHEREAS, a preliminary plat for the north half of the Property was approved by
the City Council on July 21, 2025; and
WHEREAS, the proposed final plat is consistent with the preliminary plat as
approved by the City council; and
WHEREAS, the proposed final plat complies with each of the conditions set forth
by the City Council in its approval of the preliminary plat of the Property.
NOW, THEREFORE, BE IT RESOLVED
1. It is hereby determined by the City Council for the City of Elk River as follows:
A. The proposed subdivision is consistent with the Chapter of 30 of the
City Code of Ordinances and conforms with all its requirements.
B. The proposed subdivision is consistent with all applicable general and
specialized city, county, and regional plans including, but not limited
to, the City’s Comprehensive Plan.
C. The physical characteristics of the site, including, but not limited to,
topography, soils, vegetation, susceptibility to erosion and siltation,
susceptibility to flooding, and drainage are suitable for the type and
density of development and uses contemplated.
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D. The proposed subdivision makes adequate provision for water supply,
storm drainage, sewage transportation, erosion control and all other
services, facilities and improvements otherwise required herein.
E. The proposed subdivision will not cause substantial environmental
damage.
F. The proposed subdivision will not conflict with easements of record or
with easements established by judgment of a court.
G. The proposed subdivision will not have an undue or adverse impact
on the reasonable development of neighboring land.
2. Final plat approval is hereby granted for the Property, subject to the
conditions set forth in attached Exhibit B.
3. The officers of the City are hereby authorized, once the conditions set forth
in Exhibit B are met and complied with, to sign the final plat for the Property
and to issue a certified copy of this Resolution giving final approval of the
plat.
4. The owner of the Property is authorized to record the final plat as required
by law and shall file proof of said recording with the City. No building
permits will be issued for the Property until the final plat is recorded.
5. This final plat approval shall expire two years from the date of this resolution
if the final plat is not recorded within that time.
Passed and adopted this 20th day of July 2026.
John J. Dietz, Mayor
ATTEST:
Justin Dunford, City Clerk
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EXHIBIT A
LEGAL DESCRIPTION
Outlot K, Oakwater Ridge, Sherburne County, Minnesota
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EXHIBIT B
CONDITIONS OF APPROVAL
1. Staff approval of all engineering, grading, utility, site, and landscape plans.
2. Park dedication shall be paid at an adjusted rate of $1,000 per lot.
3. The Water Availability Charge shall be paid prior to releasing the final plat.
4. Prior to releasing the Final Plat for recording, the developer shall furnish a
boundary survey of the proposed property to be platted with all property
corner monuments in place and marked with lath and a flag.
5. Council approval of an amended Development Contract outlining the
responsibilities of the developer and the city.
6. A letter of credit equal to 100% of the cost of the public improvements must
be provided prior to releasing the plat for recording.
7. Upon completion of all public improvements and acceptance by the city, a
security or warranty in a form acceptable to the public works director must
be secured.
8. All wet stormwater basins require a 25-foot easement in accordance with
setback and buffer requirements outlined in Sec. 30-1852. The buffer must
be marked with approved signs.
9. Setback lines shown on all plans must reflect the 45-foot setback required for
all wet ponds.
10. The proposed temporary dead end on Yale Street must include signage
stating, "Future Through Street" and a temporary cul-de-sac built to the
satisfaction of the city engineer.
11. Any item or condition found that indicates the site is likely to yield
information important to prehistory or history shall be reported to the city
immediately. Furthermore, the city reserves the right to halt work authorized
for its approval until the site has been properly investigated and the work is
authorized.
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The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.4
Meeting Date
July 20, 2026
Prepared By
Mark Dickinson, Fire Chief
Item Description
Turnout Gear Dryer Award
Reviewed by
Mark Dickinson
Cal Portner
Justin Dunford
Action Requested
Accept, by motion, a matching 2026-27 Department of Public Safety/State Fire Marshal Grant.
Background/Discussion
The Elk River Fire Department sought and was awarded a grant through the Department of Public
Safety/State Fire Marshal.
The grant requires a city match of $2,800 for the $8,000 grant for a total expenditure of $10,800. The Fire
Department intends to use the grant to purchase a turnout gear dryer. The existing dryer at Fire Station #1 is
at the end of its life cycle and is failing.
Financial Impact
The city match of $2,800 will come out of the existing budget.
Mission/Policy/Goal
Elk River Mission Statement
Attachments
None
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The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.5
Meeting Date
July 20, 2026
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Item Description
Northbound Liquor Special Inspections and Testing
Services Agreement with Braun Intertec
Reviewed by
Cal Portner
Justin Dunford
Action Requested
Approve, by motion, the Proposal submitted by Braun Intertec for $62,171 for the aggregate pier
observations, construction materials inspections/testing, building enclosure consulting, and firestopping.
Background/Discussion
Braun Intertec Corporation (Braun Intertec) submits this proposal to provide special inspections and testing
services for our new Northbound Liquor Store. Aggregate pier observations, construction materials
inspections/testing, building enclosure consulting, etc., are soft costs related to the construction of the new
Northbound Liquor Store.
Cost Breakdown per Scope
▪ Construction Materials Testing = $42,950
▪ Building Envelope Consulting =$13,717
▪ Firestopping Observations = $6,050
Financial Impact
Total expense is $62,171 paid using the Liquor Fund.
Mission/Policy/Goal
Ethical, efficient, and responsible.
Attachments
1. Northbound Liquor Retail - Proposal
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July 8, 2026 Proposal 10014317_001
Joe Stremcha
City of Elk River
13065 Orono Pkwy NW
Elk River, MN 55330-5600
Re: Proposal for Special Inspection and Testing Services
Northbound Liquor Retail
19420 Evans Street Northwest
Elk River, Minnesota
Dear Mr. Stremcha:
Braun Intertec Corporation (Braun Intertec) submits this proposal to provide special inspections and testing
services for Northbound Liquor Retail in Elk River, Minnesota.
Our Understanding of the Project
We understand this project will include the construction of a two-story, 15,000 square foot retail building
located in Elk River, Minnesota. Construction includes rammed aggregate piers to improve the existing onsite
soils, a slab-on-grade foundation supported by spread footings/concrete piers and steel framing.
Construction will also include a 500 square-foot-loading dock area attached to the east of the building with a
14-foot cast-in-place cantilevered retaining wall, modular block walls of varying heights, new bituminous and
concrete pavement, and below grade utilities.
Available Information
This proposal was prepared using the following documents and information.
▪ Project plans and specifications prepared by LSE Architects, dated May 14, 2026.
▪ Project Addenda numbered 1 through 3, dated May 22, June 1 and June 4 of 2026, respectively.
▪ Special Inspection and Testing Schedule prepared by LSE Architects, dated May 18, 2026.
▪ A geotechnical report and a later retaining wall addendum prepared by Braun Intertec, dated
September 15, 2025, and February 11, 2026.
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City of Elk River
Northbound Liquor Retail
Proposal 10014317_001
July 8, 2026
Braun Intertec Page 2
Project Approach and Staff Qualifications
Special Inspections
Braun Intertec has adopted the International Code Council (ICC) Model Program for Special Inspection to
develop the guiding principles for our special inspection program. This model was selected because it was
designed by the ICC to assist owners, contractors and building officials in the understanding, administration
and enforcement of the special inspection requirements of the International Building Code (IBC). Currently,
there are ICC certifications for soils, reinforced concrete, structural masonry, pre-tension/post-tension (pre-
stressed) concrete, spray-applied fireproofing, structural steel and bolting, and structural welding.
Qualifications and Experience
ICC certified special inspectors will provide special inspections. An ICC certified special inspector is one
who has successfully demonstrated their ability to understand the IBC, construction practices and how to
read and understand construction documents. Through experience and examination, our ICC certified
special inspectors have demonstrated their ability to provide special inspection services.
Inspections and Reporting
Our special inspectors summarize the nature, extent and results of special inspection activities at the time
they are performed on Special Inspection Daily Report forms submitted electronically to the general
contractor’s on-site personnel for review and records. These records can also be transmitted electronically
to others who may want to review these documents on an agreed upon schedule. When unresolved
discrepancies are noted, we will document the issues and work with the design and construction team to
bring them to resolution. Special inspection final reports will be prepared and submitted upon completion as
required by the requirements of the IBC.
Communications
Braun Intertec special inspectors will communicate the results of their inspections to the contractor and our
supervising engineer each day special inspections are performed. We strive to have our special inspectors
develop a working relationship with the project’s structural engineer-of-record. We may attempt contact with
the structural engineering consultant periodically to review the work being performed and to request
clarifications and direction on any item that may require it.
Construction Materials Testing
Qualified technicians working under the direction of a professional engineer will provide the services.
Experience and certification information is available upon request once we are provided with schedule
information. Concrete technicians assigned to the project are ACI Concrete Field Testing Technician – Grade I
certified to conduct the required concrete testing. Soil technicians are certified to use a nuclear gauge for
soil density testing, so test results can be determined on site and evaluated once the required laboratory
testing is completed. Field test results will be verbally reported daily to the general contractor on site, with
written field and laboratory reports distributed shortly after.
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City of Elk River
Northbound Liquor Retail
Proposal 10014317_001
July 8, 2026
Braun Intertec Page 3
Scope of Services
Services are performed under the direction of a licensed professional engineer, on a periodic basis,
depending on the construction schedule and when they are requested by the general contractor. After
reviewing available information, we understand our scope of services for the project will be limited to the
tasks defined below.
Soil Related Services
▪ Perform laboratory Proctor tests to determine the maximum Proctor dry densities and optimum
moisture contents of prospective fill materials.
▪ Test compacted fill placed below building footprints and oversizing areas, below slabs and/or
pavements, adjacent to walls, and in utility trenches, to determine if the relative compaction was
achieved.
Deep Foundations Related Services
▪ Observe installation of the rammed aggregate piers on a continuous basis.
▪ Engineering oversight and review of the services provided.
Concrete Related Services
▪ Observe concrete reinforcement placement.
▪ Sample and test the plastic concrete for slump, air content, temperature and prepare test cylinders
for laboratory compressive strength testing with ACI level 1 field technicians. We will perform
concrete testing on structural items as required by the IBC. Though not required by the IBC we have
included testing for the interior slab on grade, exterior sidewalks, curb and gutter, and pavement.
▪ Perform laboratory compressive strength testing of the concrete samples.
▪ Observe the installation of post-installed anchors on a periodic basis.
Structural Steel Related Services
▪ Observe and test the structural steel welded and bolted connections in the field.
▪ Observe and test the metal decking connections for orientation, sidelap fasteners, the hold down
connections and the placement of shear studs.
▪ Observe and document the installation of the base plate anchor bolts.
▪ Observe the installation of post-installed anchors.
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City of Elk River
Northbound Liquor Retail
Proposal 10014317_001
July 8, 2026
Braun Intertec Page 4
Paving Related Services
▪ Observe test rolls of the pavement subgrade soils and/or aggregate base layer to determine if the
materials tested are capable of supporting bituminous or concrete pavement.
Engineering Consulting and Project Communication and Reporting Services
▪ Provide engineering consulting services, review test results and observations reports, and prepare
required final reports.
▪ Management, including scheduling of our field personnel and communication with the contractor,
owner, building official, and design team.
▪ Transmit results to the project team on weekly basis to the contractor, owner, building official,
fabricators and design team.
Building Enclosure Consulting, Observations and Testing
Building Enclosure Consulting, Observation and Testing Services are provided by the Braun Intertec Building
Science Group based in Minneapolis, Minnesota. The Building Science Group is a team of Registered
Architects, Professional Engineers, Consultants, and Field Technicians with certifications as Building
Enclosure Commissioning Agent (BECxP, CxA+BE), Registered Waterproofing Consultant (RWC), Registered
Roof Observer (RRO), Registered Exterior Wall Observer (REWO), Certified EIFS Inspectors (CEI),
FenestrationMaster Professional (FMPC), Fenestration Associate Professional (FAPC), and Certified Infrared
Thermographers (CIT). Braun Intertec is an AAMA-accredited Field Test Agency.
Building Enclosure Consulting – ASHRAE 90.1-2019, Section 5.4.3.1.1, Exception 3
Proposed scope is based upon ASHRAE 90.1-2019, Section 5.4.3.1.1, Exception 3 as required by Minnesota
Energy Code for continuous air barrier design and installation verification program. A design review, periodic
field observations, and related reports of these services are required by the verification program, as outlined
in ASHRAE 90.1-2019 Section 5.9.1.2 and below.
Design Document Review
▪ Perform one review of the CD documents (95% is the ideal benchmark). Review will focus on the
exterior envelope, materials and assemblies, transitions between building enclosure assemblies,
and fenestration and doors allowable air leakage. This design review shall not be considered a design
peer review or regulatory review.
▪ Provide a report and attend an online meeting following the review. Our report will consist of
electronic redline markings in Bluebeam Revu on the drawings and specification documents.
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City of Elk River
Northbound Liquor Retail
Proposal 10014317_001
July 8, 2026
Braun Intertec Page 5
Building Enclosure Observations
▪ Attend pre-construction meetings (if applicable), perform pre-construction prep work, and review
approved submittals.
▪ Perform periodic observations during installation of building enclosure systems, including
waterproofing, below-grade systems, exterior walls, air/weather barriers, fenestrations and doors,
roofing, and critical connections, junctions, and envelope transitions.
▪ Provide a Daily Observation Report to document observations made at the time of each site visit. If
discrepancies are observed, they will be discussed with the Contractor prior to departing the site.
▪ As discrepancies are observed and documented, it is the responsibility of others to make necessary
correction(s). At subsequent visits, we will document corrections if not covered or hidden from view.
If hidden from view, we will note as such.
▪ We have included eight site visits for observations. Actual installation phasing and sequencing may
modify the number of visits.
Building Enclosure Testing
Air Barrier Testing
▪ Dry mil thickness testing – We have included cost for 1 test per elevation assuming the fluid-applied
membrane air barrier is applied to a concrete surface. Other surface conditions may not be suitable
for performing this test.
▪ Testing will be performed during periodic observation site visits.
Building Enclosure Management and Reporting Services
▪ Review test results and observation reports, transmit reports to the project team following
completion of observation and/or testing activities, and prepare our final report.
▪ Management, including scheduling of our field personnel and communication with the contractor,
owner, and design team.
Building Enclosure Observation and Testing Assumptions
▪ Safe access to the locations requiring observations and testing to be provided by the General
Contractor.
▪ Approved submittal packages should be submitted for review a minimum of 72 hours prior to our
arrival on site.
▪ 48 hours’ notice for scheduling observations for a specific time is required. Shorter than 48 hours’
notice may impact our ability to perform the requested services.
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City of Elk River
Northbound Liquor Retail
Proposal 10014317_001
July 8, 2026
Braun Intertec Page 6
▪ We assume observation and testing at grade level, roofs, and/or terraces. We do not include costs for
aerial lift equipment or scaffolding that may be required.
▪ Re-inspection and/or additional testing due to nonconformance will be provided at rates described in
this proposal.
Firestopping Observation Services
This project requires 3rd party firestop special inspection of through-penetration firestopping and
fire-resistive joint systems under the State Building Code and adopted 2020 Minnesota State Building Code,
Section 1705.17 and Table 1604.5. Under 2020 Minnesota State Building Code, Chapter 16, Table 1604.5 –
this project falls into a High-Rise Hazard, Risk Category III Hazard, or Risk Category IV Hazard, or the project
specifications require the inspection service. Chapter 1705.17 requires inspection of installed firestop
systems by a qualified independent testing agency.
Our inspectors meet the requirements outlined in ASTM E2174, ASTM E2393, and ASTM E3038 for on-site
inspection of installed firestops and have a minimum of two years of construction inspection experience. Our
firestop inspectors are certificate holders issued by the International Firestopping Council (IFC) based on
their testing requirements, and/or Factory Mutual (FM Global) according to their FM 4991 Designated
Responsible Individual (DRI) testing requirement, and/or Underwriters Laboratory’s (UL) Designated
Responsible Individual (DRI) testing requirement and having completed coursework and training on proper
procedures for inspection of firestop systems by our internal firestop Inspection training program.
Our special inspectors summarize the nature, extent and results of their special inspection activities at the
time they are performed on Daily Inspection Forms that are submitted to the Authority Having Jurisdiction
(AHJ or Building Official), Authorizing Authority (Architect of Record), general contractor’s on-site personnel
for their review and records, the installer(s), and the main project manager managing the project for Braun
Intertec. Inspection forms will be sequentially numbered and will contain information about one type (per
approved submitted system/Engineering Judgment, by installer) of firestop system. If multiple firestop
systems are inspected in one day, then separate inspection forms will be prepared for each firestop system.
The daily special inspection reports will become the basis for our final written report.
Firestop Submittal Review, Project Communication, and Reporting Services
▪ Provide review of the approved construction documents. This is at minimum,
o The most current drawing package
o The firestop specifications section – CSI - 078400
o The approved firestop submittal, including all UL Listed assemblies and any engineering
judgments to be used, and the product information
▪ Management, including scheduling of our field personnel and communication with the contractor,
owner, building official, fabricator and design team through our report distribution process.
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City of Elk River
Northbound Liquor Retail
Proposal 10014317_001
July 8, 2026
Braun Intertec Page 7
▪ Transmit the daily field inspection reports within 24 to 48-hour basis to the project team; the installer,
general contractor, owner, building official, and design team.
Firestopping Special Inspection Assumptions
▪ Mandatory Pre-construction meeting with General Contractor and Sub-Contractor(s).
▪ Review of contract documents, including drawings, specifications, submittals, and materials prior to
installation.
▪ Coordination with the firestop installer(s) and general contractor with respect to scheduling.
▪ Safe access to all locations where firestop installations are required. No special site-specific training
or gear is required to complete our scope of services.
▪ We have assumed four trips to inspect installed firestop systems as noted in the construction
documents for the project. Firestop inspection trips include coordination time, travel, construction
meetings (as requested), mandatory pre-installation meetings, preparation of daily written reports for
each inspected firestop system by each installer. Actual installation phasing and sequencing may
modify the number of visits.
▪ We will require a minimum of 24 hours’ notice for scheduling inspections for a specific time. Less
than 24 hours’ notice may impact our ability to perform the requested services, and the associated
impacts will be the responsibility of others.
▪ Inspection guidelines will be based on IBC code required ASTM E2174 and ASTM E2393 inspection
standards.
▪ Re-inspection or follow-up inspections will be charged on an hourly and/or unit pricing basis at the
billing rates included.
▪ Final report when firestopping is completed.
Basis of Scope of Work
The costs associated with the proposed scope of services were estimated using the following assumptions. If
the construction schedule is modified or the contractor completes the various phases of the project at
different frequencies or durations than shown in this proposal, we may need to adjust the overall cost
accordingly. The scope of work and number of trips required to perform these services are as shown in the
attached table. Notable assumptions in developing our estimate include:
▪ This project will begin in August of 2026
▪ Assumptions regarding the number of trips for special inspections and testing are outlined in the
attached cost estimate table. As the contractor’s schedule becomes available and designs are
finalized, please review this proposed scope of work to determine if the project’s needs and budget
will be met.
Page 66 of 213
City of Elk River
Northbound Liquor Retail
Proposal 10014317_001
July 8, 2026
Braun Intertec Page 8
▪ The rammed aggregate piers will be the first phase of construction, and we have assumed that
observations will be required on a full-time basis.
▪ Concrete placements for the structure will be observed throughout the duration by our technician as
required by the IBC and project documents.
▪ The inspection of the reinforcement associated with structural concrete will be performed
immediately prior to testing of the concrete with no additional trips or time incurred.
▪ We assume the structural steel fabricator will be AISC certified and review of quality control manual
or inspections of the fabrication shop are not required. If this assumption is not correct, please call
us and we will provide a cost estimate for the fabrication shop inspections.
▪ We will perform testing of the fireproofing at the IBC required frequencies of one density and bond
test for every 2,500 square feet per floor, per member type. Please confirm the quantities we have
assumed as limited fireproofing information is available at this time.
▪ No special site specific training or gear is required to complete our scope of services.
▪ Parking will be available on site for our vehicles.
▪ You, or others you may designate, will provide us with current and approved plans and specifications
for the project. Modification to these plans must also be sent to us so we can review their
incorporation into the work.
▪ We will require a minimum of 24 hours’ notice for scheduling inspections for a specific time. Shorter
than 24 hours’ notice may impact our ability to perform the requested services, and the associated
impacts will be the responsibility of others.
Cost
We will furnish the services described in this proposal for the estimated fees shown in Table 1 below. A
tabulation showing hourly and unit rates associated with our proposed scope of services is attached. The
actual cost of our services will be based on the actual units or hours expended to meet the requirements of
the project documents.
Table 1. Cost Breakdown per Scope
Type of Scope Estimated Cost
Construction Materials Testing $ 42,950
Building Envelope Consulting $ 13,717
Firestopping Observations $ 6,050
Total Costs $ 62,171
Page 67 of 213
City of Elk River
Northbound Liquor Retail
Proposal 10014317_001
July 8, 2026
Braun Intertec Page 9
This cost estimate was developed with the understanding that the scope of services defined herein will be
required and requested during our normal work hours of 6:00 a.m. to 4:00 p.m., Monday through Friday.
Services that we are asked to provide to meet the project requirements or the contractor’s construction
schedule outside our normal business hours will be invoiced using an overtime rate factor. The factor for
services provided outside our normal work hours or on Saturday will be 1.25 times the listed hourly rate for
the service provided. The factor for services provided on Sunday or legal holidays will be 1.5 times the listed
hourly rate for the service provided. We have not included premiums for overtime in our cost estimate;
however, we recommend that allowances and contingencies be made for overtime charges based on
conversations with the contractor. You will be billed only for services provided on a time and materials basis.
Because our services are directly controlled by the schedule and performance of others, the actual cost may
vary from our estimate. It is difficult to project all of the services and the quantity of services that may be
required for any project. If services are required that are not discussed above, we will provide them at the
rates shown in the attached table or, if not shown, at our current Schedule of Charges. We will invoice you on
a monthly basis.
Page 68 of 213
City of Elk River
Northbound Liquor Retail
Proposal 10014317_001
July 8, 2026
Braun Intertec Page 10
General Remarks
We based the proposed fee on the scope of services described and the assumption that you will authorize
our services within 30 days and that others will not delay us beyond our proposed schedule. If anything in this
proposal is not consistent with your requirements, please let us know immediately.
We include the Braun Intertec General Conditions, which provide additional terms and are a part of our
agreement. To accept this proposal and authorize us to proceed, please sign and return it to us in its entirety.
We appreciate the opportunity to present this proposal to you. We will be happy to meet with you to discuss
our proposed scope of services further and clarify the various scope components. Braun Intertec will not
release any written reports until we have received a signed agreement. Ordering services from Braun Intertec
constitutes acceptance of the terms of this proposal.
To have questions answered or schedule a time to meet and discuss our approach to this project further,
please contact Ben Everson at 612.597.4803 (beverson@braunintertec.com).
Sincerely,
Braun Intertec Corporation
Benjamin A. Everson
Project Manager
Timonthy J. Schappa, PE
Senior Engineer
Daniel E. Martin
Director, Senior Project Manager
Attachments:
Fee Estimate
General Conditions (11/04/2024)
c: Kory Reiners, Terra Construction
The proposal is accepted, and Braun Intertec is
authorized to proceed.
_____________________________________________
Authorizer’s Firm
_____________________________________________
Authorizer’s Signature
_____________________________________________
Authorizer’s Name (please print or type)
_____________________________________________
Authorizer’s Title
_____________________________________________
Date
Page 69 of 213
1
Fee Estimate
10014317_001
Northbound Liquor Retail
Client: Work Site Address:
City of Elk River
Joe Stremcha
13065 Orono Pkwy NW
Elk River, MN 55330-5600
763.635.1022
19420 Evans St NW
Elk River, Minnesota 55330
Qty/Hours Rate Amount
Task 1: Construction Materials Testing
Subtask 1.1: Soil Observations and Testing $4,444.00
Soil Observations 8.00 125.00 $1,000.00
Utilities 2 Trips @ 4 Hr 8.00
Soil Compaction Testing - Nuclear 20.00 102.00 $2,040.00
Foundation Backfill 2 Trips @ 4 Hr 8.00
Slab on Grade 1 Trip @ 4 Hr 4.00
Utilities 2 Trips @ 4 Hr 8.00
Soil Sample pick-up 2.00 102.00 $204.00
Proctor Pick Ups 1 Trip @ 2 Hr 2.00
Nuclear moisture-density meter charge, per hour 20.00 36.00 $720.00
Trip Charge 8.00 60.00 $480.00
Subtask 1.2: Concrete Observations and Testing $14,886.00
Concrete Observations 30.00 125.00 $3,750.00
Post-Installed Anchors 6 Trips @ 3 Hr 18.00
Footings/Column Pads 4 Trips @ 1 Hr 4.00
Concrete Piers 3 Trips @ 1 Hr 3.00
Foundation Walls 3 Trips @ 1 Hr 3.00
Retaining Wall 2 Trips @ 1 Hr 2.00
Concrete Testing 68.00 102.00 $6,936.00
Footings/Column Pads 4 Trips @ 3 Hr 12.00
Concrete Piers 3 Trips @ 3 Hr 9.00
Foundation Walls 3 Trips @ 3 Hr 9.00
Retaining Wall 2 Trips @ 3 Hr 6.00
Interior Slab on Grade 2 Trips @ 4 Hr 8.00
Stoops 2 Trips @ 4 Hr 8.00
Exterior Slabs / Sidewalks / Pavement 3 Trips @ 4 Hr 12.00
Curb & Gutter 1 Trip @ 4 Hr 4.00
Concrete Cylinder Pick Up 20.00 102.00 $2,040.00
Concrete Cylinder Pick Up 10 Trips @ 2 Hr 20.00
Trip Charge 36.00 60.00 $2,160.00
Subtask 1.3: Pavement Observations and Testing $1,160.00
Proofroll Observations 8.00 130.00 $1,040.00
Trip Charge 2.00 60.00 $120.00
Subtask 1.4: Laboratory Services $4,716.00
Subtask 1.4.1: Laboratory Soil Testing $216.00
Soil Proctor MD Relationship (Standard) ASTM D698 each 1.00 216.00 $216.00
Subtask 1.4.2: Laboratory Concrete Testing $4,500.00
Concrete Compressive Strength Cylinders ASTM C39 each 100.00 45.00 $4,500.00
Footings/Column Pads 4 Sets @ 5 Qty 20.00
Concrete Piers 3 Sets @ 5 Qty 15.00
Foundation Walls 3 Sets @ 5 Qty 15.00
Retaining Wall 2 Sets @ 5 Qty 10.00
Page 70 of 213
2
Qty/Hours Rate Amount
Interior Slab on Grade 2 Sets @ 5 Qty 10.00
Stoops 2 Sets @ 5 Qty 10.00
Exterior Slabs / Sidewalks / Pavement 3 Sets @ 5 Qty 15.00
Curb & Gutter 1 Set @ 5 Qty 5.00
Subtask 1.5: Aggregate Pier Observations $7,040.00
Deep Foundations Observations - Geopier Observations (Reg) 32.00 130.00 $4,160.00
Agg Pier Observations (Reg) 4 Trips @ 8 Hr 32.00
Deep Foundations Observations - Geopier Observations (OT) 16.00 160.00 $2,560.00
Agg Pier Observations (OT) 4 Trips @ 4 Hr 16.00
Trip Charge - Full Day 4.00 80.00 $320.00
Subtask 1.6: Structural Steel Observations $4,520.00
Special Inspector Steel 32.00 130.00 $4,160.00
Welding, Framing, Bolting, Metal Deck 6 Trips @ 5 Hr 30.00
NDE Final Report 1 Ea @ 2 Hr 2.00
Trip Charge 6.00 60.00 $360.00
Subtask 1.7: Project Management, Engineering Review,
Reporting
$6,184.00
Senior Engineer 5.00 224.00 $1,120.00
Project Manager 22.00 198.00 $4,356.00
Project Assistant 4.00 102.00 $408.00
Project Control Specialist III 2.00 150.00 $300.00
Task 1 Total: $42,950.00
Task 2: Building Enclosure Consulting, Observations and
Testing
Subtask 2.1: Design Document Review $2,120.00
Senior Consultant 10.00 212.00 $2,120.00
Subtask 2.2: Building Enclosure Observations $6,960.00
Building Enclosure Observation 40.00 162.00 $6,480.00
Observations 8 Ea @ 5 Hr 40.00
Trip Charge 8.00 60.00 $480.00
Subtask 2.3: Building Enclosure Testing $1,552.00
Air Barrier Quantitative Testing - Dry film thickness 4.00 388.00 $1,552.00
Subtask 2.4: Building Enclosure Management and Reporting $2,539.00
Project Assistant 1.00 102.00 $102.00
Project Control Specialist III 1.00 150.00 $150.00
Senior Consultant 8.00 212.00 $1,696.00
Consultant 3.00 197.00 $591.00
Task 2 Total: $13,171.00
Task 3: Firestopping Special Inspections
Subtask 3.1: Firestopping Observations $3,504.00
Firestopping Observations 24.00 136.00 $3,264.00
Firestopping Observations 4 Trips @ 6 Hr 24.00
Trip Charge 4.00 60.00 $240.00
Subtask 3.2: Firestopping Project Management $1,746.00
Project Manager 8.00 198.00 $1,584.00
Pre Con Meeting / Submittal Review 1 Ea @ 6 Hr 6.00
Firestopping Manager 4 Ea @ 0.5 Hr 2.00
Project Assistant 1.00 102.00 $102.00
Trip Charge 1.00 60.00 $60.00
Subtask 3.3: Firestopping Final Report $800.00
Firestopping Final Report (1-9 Inspection Trips) 1.00 800.00 $800.00
Task 3 Total: $6,050.00
Page 71 of 213
3
Qty/Hours Rate Amount
Project Total $62,171.00
Page 72 of 213
Rev. 2024-11-04 Page 1 of 2
BRAUN INTERTEC GENERAL CONDITIONS
SECTION 1: AGREEMENT
1.1 Agreement. This agreement consists of these General Conditions and the
accompanying written proposal or authorization (“Agreement”). This Agreement is the
entire agreement between Consultant and Client and supersedes all prior negotiations,
representations or agreements, either written or oral.
1.2 Parties to the Agreement. The parties to this Agreement are the Braun Intertec
entity (“Consultant”) and the client (“Client”) as described in the accompanying written
proposal or authorization. Consultant and Client may be individually referred to as a
Party or collectively as the Parties.
SECTION 2: SCOPE OF SERVICES
2.1 Services. Consultant will provide services (“Services”) in connection with the
project (“Project”) which are specifically described in this Agreement. Client
understands and agrees that Consultant’s Services are limited to those which are
expressly set forth in this Agreement.
2.2 Additional Services. Any Services not specifically set forth in the Agreement
constitute “Additional Services.” Additional Services must be agreed upon in writing by
the Parties prior to performance of the Additional Services and may entitle Consultant
to additional compensation and schedule adjustments. Additional compensation will
be based upon Consultant’s then current rates and fees.
SECTION 3: PERFORMANCE OF SERVICES
3.1 Standard of Care. Consultant will perform its professional Services consistent with
the degree of care and skill exercised by members of Consultant’s profession
performing under similar circumstances at the same time and in the same locality in
which the professional Services are performed. CONSULTANT DISCLAIMS ALL
STATUTORY, ORAL, WRITTEN, EXPRESS, AND IMPLIED WARRANTIES, INCLUDING
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR
PERFORMANCE OF SERVICES IN A GOOD AND WORKMANLIKE MANNER.
3.2 Written Reports and Findings. Unless otherwise agreed in writing, Consultant’s
findings, opinions, and recommendations will be provided to Client in writing and may
be delivered via electronic format. Client agrees not to rely on oral findings, opinions, or
recommendations.
3.3 Observation or Sampling Locations. Locations of field observations or sampling
described in Consultant’s report or shown on Consultant’s sketches reference Project
plans or information provided by others or estimates made by Consultant’s personnel.
Consultant will not survey, set, or check the accuracy of those points unless Consultant
accepts that duty in writing. Client agrees that such dimensions, depths, or elevations
are approximations unless specifically stated otherwise in the report. Client accepts the
inherent risk that samples or observations may not be representative of items not
sampled or seen and further that site conditions may vary over distance or change over
time.
3.4 Project Site Information. Client will provide Consultant with prior environmental,
geotechnical and other reports, specifications, plans, and information to which Client
has access about the Project site and which are necessary for Consultant to carry out
Consultant’s Services. Client agrees to provide Consultant with all plans, changes in
plans, and new information as to Project site conditions until Consultant has completed
its Services.
3.5 Subsurface Objects. To the extent required to carry out Consultant’s Services,
Client agrees to provide Consultant, in a timely manner, with information that Client has
regarding buried objects at the Project site. Consultant will not be responsible for
locating buried objects or utilities at the Project site unless expressly set forth in this
Agreement, or expressly required by applicable law. Client agrees to hold Consultant
harmless, defend, and indemnify Consultant from claims, damages, losses, penalties
and expenses (including attorney fees) involving buried objects or utilities that were not
properly marked or identified or of which Client had or should have had knowledge but
did not timely notify Consultant or correctly identify on the plans Client or others
furnished to Consultant. Consultant, from time to time, may hire a third party to locate
underground objects or utilities and, unless otherwise expressly stated in this
Agreement, such action shall be for the sole benefit of Consultant and in no way will
alleviate Client of its responsibilities hereunder.
3.6 Hazardous Materials. Client will notify Consultant of any knowledge or suspicion of
the presence of hazardous or dangerous materials present on any Project site or in any
sample or material provided to Consultant. Client agrees to provide Consultant with
information in Client’s possession or control relating to such samples or materials. If
Consultant observes or suspects the presence of contaminants not anticipated in this
Agreement, Consultant may terminate Services without liability to Client or to others,
and Client will compensate Consultant for fees earned and expenses incurred up to the
time of termination.
3.7 Supervision of Others. Consultant shall have no obligation to supervise or direct
Client’s representatives, contractors, or other third parties retained by Client.
Consultant has no authority over or responsibility for the means, methods, techniques,
sequences, or procedures of construction selected or used by Client, Client’s
representatives, contractors, or other third parties retained by Client.
3.8 Safety. Consultant will provide a health and safety program for its employees as well
as reasonable personal protective equipment (“PPE”) typical for the performance of the
Services provided by this Agreement and as required by law. Consultant shall be entitled
to compensation for all extraordinary PPE required by Client. Client will provide, at no
cost to Consultant, appropriate Project site safety measures which are necessary for
Consultant to perform its Services at the Project location or work areas in connection
with the Project. Consultant’s employees are expressly authorized by Client to refuse to
work under conditions that may, in an employee’s sole discretion, be unsafe.
Consultant shall have no authority over or be responsible for the safety precautions and
programs, or for security, at the Project site (except with respect to Consultant’s own
Services and those of its subconsultants).
3.9 Project Site Access and Damage. Client will provide or ensure access to the site.
In the performance of Services some Project site damage is normal even when due care
is exercised. Consultant will use reasonable care to minimize damage to the Project
site. Unless otherwise expressly stated in this Agreement, the cost of restoration for
such damage has not been included in the estimated fees and will be the responsibility
of the Client.
3.10 Monitoring Wells. To the extent applicable to the Services, monitoring wells are
Client’s property, and Client is responsible for monitoring well permitting, maintenance,
and abandonment unless otherwise expressly set forth in this Agreement.
3.11 Contaminant Disclosures Required by Law. Client agrees to make all disclosures
related to the discovery or release of contaminants that are required by law. In the event
Client does not own the Project site, Client acknowledges that it is Client’s duty to
inform the owner of the Project site of the discovery or release of contaminants at the
site. Client agrees to hold Consultant harmless, defend, and indemnify Consultant from
claims, damages, penalties, or losses and expenses, including attorney fees, related to
Client’s failure to make any disclosure required by law or for failing to make the
necessary disclosure to the owner of the Project site.
SECTION 4: SCHEDULE
4.1 Schedule. Consultant shall complete its obligations within a reasonable time and
shall make decisions and carry out its responsibilities in a manner consistent with the
Standard of Care. Specific periods of time for rendering Services or specific dates by
which Services are to be completed are provided in this Agreement. If Consultant is
delayed in the performance of the Services by actions, inactions, or neglect of Client or
others for whom Client is responsible, by changes ordered in the Services, or by other
causes beyond the control of Consultant, including force majeure events, then the time
for Consultant’s performance of Services shall be extended and Consultant shall
receive payment for all expenses attributable to the delay in accordance with
Consultant’s then current rates and fees.
4.2 Scheduling On-Site Observations or Services. To the extent Consultant’s Services
require observations, inspections, or testing be performed at the Project site, Client
understands and agrees that Client, directly or indirectly through its authorized
representative, has the sole right and responsibility to determine and communicate to
Consultant the scheduling of observations, inspections, and testing performed by
Consultant. Accordingly, Client also acknowledges that Consultant bears no
responsibility for damages that may result because Consultant did not perform such
observations, inspections, or testing that Client failed to request and schedule. Client
understands that the scheduling of observations, inspections, or testing will dictate the
time Consultant’s field personnel spend on the job site and agrees to pay for all services
provided by Consultant due to Client’s scheduling demands in accordance with
Consultant’s then current rates and fees.
SECTION 5: COST AND PAYMENT OF SERVICES
5.1 Cost Estimates. Consultant’s price or fees provided for in this Agreement are an
estimate and are not a fixed amount unless otherwise expressly stated in this
Agreement. Consultant’s estimated fees are based upon Consultant’s experience,
knowledge, and professional judgment as well as information available to Consultant at
the time of this Agreement. Actual costs may vary and are not guaranteed or warrantied.
5.2 Payment. Consultant will invoice Client on a monthly basis for Services performed.
Client will pay for Services as stated in this Agreement together with costs for Additional
Services or costs otherwise agreed to in writing within thirty (30) days of the invoice date.
Unless otherwise stated in this Agreement or agreed to in writing, Consultant’s costs for
all services performed will be based upon Consultant’s then current rates, fees, and
charges. No retainage shall be withheld by Client. All unpaid invoices will incur an
interest charge of 1.5% per month or the maximum allowed by law.
5.3 Other Payment Conditions. Consultant will require Client credit approval and
Consultant may require payment of a retainer fee. Client agrees to pay all applicable
taxes. Client’s obligation to pay for Services under this Agreement is not contingent on
Client’s ability to obtain financing, governmental or regulatory agency approval,
permits, final adjudication of any lawsuit, Client’s successful completion of any project,
receipt of payment from a third party, or any other event.
5.4 Third Party Payment. Provided Consultant has agreed in writing, Client may request
Consultant to invoice and receive payment from a third party for Consultant’s Services.
Consultant, in its sole discretion, may also require the third party to provide written
acceptance of all terms of this Agreement. Neither payment to Consultant by a third
party nor a third party’s written acceptance of all terms of this Agreement will alter
Client’s rights and responsibilities under this Agreement. Client expressly agrees that
Page 73 of 213
Rev. 2024-11-04 Braun Intertec General Conditions Page 2 of 2
the Agreement contains sufficient consideration notwithstanding Consultant being paid
by a third party.
5.5 Non-Payment. If Client does not pay for Services in full as agreed, Consultant may
retain work not yet delivered to Client and Client agrees to return all Project Data (as
defined in this Agreement) that may be in Client’s possession or under Client’s control.
If Client fails to pay Consultant in accordance with this Agreement, such nonpayment
shall be considered a default and breach of this Agreement for which Consultant may
terminate for cause consistent with the terms of this Agreement and without liability to
Client or to others. Client will compensate Consultant for fees earned and expenses
incurred up to the time of termination. Client agrees to be liable to Consultant for all
costs and expenses Consultant incurs in the collection of amounts invoiced but not
paid, including but not limited to attorney fees and costs.
SECTION 6: OWNERSHIP AND USE OF DATA
6.1 Ownership. All reports, notes, calculations, documents, and all other data prepared
by Consultant in the performance of the Services (“Project Data”) are instruments of
Consultant’s Services and are the property of Consultant. Consultant shall retain all
common law, statutory and other reserved rights, including the copyright thereto, of
Project Data.
6.2 Use of Project Data. The Project Data of this Agreement is for the exclusive purpose
disclosed by Client and, unless agreed to in writing, for the exclusive use of Client.
Client may not use Project Data for a purpose for which the Project Data was not
prepared without the express written consent of Consultant. Consultant will not be
responsible for any claims, damages, or costs arising from the unauthorized use of any
Project Data provided by Consultant under this Agreement. Client agrees to hold
harmless, defend and indemnify Consultant from any and all claims, damages, losses,
and expenses, including attorney fees, arising out of such unauthorized use.
6.3 Samples, Field Data, and Contaminated Equipment. Samples and field data
remaining after tests are conducted, as well as field and laboratory equipment that
cannot be adequately cleansed of contaminants, are and continue to be the property of
Client. Samples may be discarded or returned to Client, at Consultant’s discretion,
unless within fifteen (15) days of the report date Client gives Consultant written direction
to store or transfer the samples and materials. Samples and materials will be stored at
Client’s expense.
6.4 Data Provided by Client. Electronic data, reports, photographs, samples, and other
materials provided by Client or others may be discarded or returned to Client, at
Consultant’s discretion, unless within 15 days of the report date Client gives Consultant
written direction to store or transfer the materials at Client’s expense.
SECTION 7: INSURANCE
7.1 Insurance. Consultant shall keep and maintain the following insurance coverages:
a. Workers’ Compensation: Statutory
b. Employer’s Liability: $1,000,000 bodily injury, each accident | $1,000,000 bodily
injury by disease, each employee | $1,000,000 bodily injury/disease, aggregate
c. General Liability: $1,000,000 per occurrence | $2,000,000 aggregate
d. Automobile Liability: $1,000,000 combined single limit (bodily injury and property
damage)
e. Excess Umbrella Liability: $5,000,000 per occurrence | $5,000,000 aggregate
f. Professional Liability: $2,000,000 per claim | $2,000,000 aggregate
7.2 Waiver of Subrogation. Client and Consultant waive all claims and rights of
subrogation for losses arising out of causes of loss covered by the respective insurance
policies.
7.3 Certificate of Insurance. Consultant shall furnish Client with a certificate of
insurance upon request.
SECTION 8: INDEMNIFICATION , CONSEQUENTIAL DAMAGES, LIABILITY LIMITS
8.1 Indemnification. Consultant’s only indemnification obligation shall be to indemnify
and hold harmless the Client, its officers, directors, and employees from and against
those damages and costs incurred by Client or that Client is legally obligated to pay as
a result of third party tort claims, including for the death or bodily injury to any person or
for the destruction or damage to any property, but only to the extent proven to be directly
caused by the negligent act, error, or omission of the Consultant or anyone for whom
the Consultant is legally responsible. This indemnification provision is subject to the
Limitation of Liability set forth in this Section 8.
8.2 Intellectual Property. Client agrees to indemnify Consultant against losses and
costs arising out of claims of patent or copyright infringement as to any process or
system that is specified or selected by Client or others on behalf of Client.
8.3 Mutual Waiver of Consequential Damages. NOTWITHSTANDING ANYTHING TO
THE CONTRARY HEREUNDER, NEITHER CONSULTANT NOR CLIENT SHALL BE LIABLE TO
THE OTHER FOR ANY CONSEQUENTIAL, PUNITIVE, INDIRECT, INCIDENTAL OR SPECIAL
DAMAGES, OR LOSS OF USE OR RENTAL, LOSS OF PROFIT, LOSS OF BUSINESS
OPPORTUNITY, LOSS OF PROFIT OR REVENUE OR COST OF FINANCING, OR OTHER SUCH
SIMILAR AND RELATED DAMAGE ASSERTED IN THIRD PARTY CLAIMS, OR CLAIMS BY
EITHER PARTY AGAINST THE OTHER.
8.4 Limitation of Liability. TO THE FULLEST EXTENT PERMITTED BY LAW, THE TOTAL
LIABILITY IN THE AGGREGATE OF CONSULTANT, CONSULTANT’S OFFICERS, DIRECTORS,
PARTNERS, EMPLOYEES, AGENTS, AND SUBCONSULTANTS, TO CLIENT AND ANYONE
CLAIMING BY, THROUGH OR UNDER CLIENT FOR ANY CLAIMS, LOSSES, COSTS, OR
DAMAGES WHATSOEVER ARISING OUT OF, RESULTING FROM OR IN ANY WAY RELATED
CONSULTANT’S PERFORMANCE OF THE SERVICES OR THIS AGREEMENT, FROM ANY
CAUSE OR CAUSES, INCLUDING BUT NOT LIMITED TO NEGLIGENCE, PROFESSIONAL
ERRORS AND OMISSIONS, STRICT LIABILITY, BREACH OF CONTRACT, INDEMNIFICATION
OBLIGATIONS OR BREACH OF WARRANTY, SHALL NOT EXCEED THE TOTAL
COMPENSATION RECEIVED BY CONSULTANT OR $50,000, WHICHEVER IS GREATER.
SECTION 9: MISCELLANEOUS PROVISIONS
9.1 Services Prior to Agreement. Directing Consultant to commence Services prior to
execution of this Agreement constitutes Client’s acceptance of this unaltered
Agreement in its entirety.
9.2 Confidentiality. To the extent Consultant receives Client information identified as
confidential, Consultant will not disclose that information to third parties without Client
consent. Additionally, any Project Data prepared in performance of the Services will
remain confidential and Consultant will not release the reports to any third parties not
involved in the Project. Neither of the aforesaid confidentiality obligations shall apply to
any information in the public domain, information lawfully acquired from others on a
nonconfidential basis, or information that Consultant is required by law to disclose.
9.3 Relationship of the Parties. Consultant will perform Services under this Agreement
as an independent contractor, and its employees will at all times be under its sole
discretion and control. No provision in this Agreement shall be deemed or construed to
create a joint venture, partnership, agency or other such association between the
Parties.
9.4 Resource Conservation and Recovery Act. To the extent applicable to the
Services, neither this Agreement nor the providing of Services will operate to make
Consultant an owner, operator, generator, transporter, treater, storer, or a disposal
facility within the meaning of the Resource Conservation and Recovery Act, as
amended, or within the meaning of any other law governing the handling, treatment,
storage, or disposal of hazardous substances. Client agrees to hold Consultant
harmless, defend, and indemnify Consultant from any claims, damages, penalties or
losses resulting from the storage, removal, hauling or disposal of such substances.
9.5 Services in Connection with Legal Proceedings. Client agrees to compensate
Consultant in accordance with its then current fees, rates, or charges if Consultant is
asked or required to respond to legal process arising out of a proceeding related to the
Project and as to which Consultant is not a party.
9.6 Assignment. This Agreement may not be assigned by Consultant or Client without
the prior written consent of the other Party, which consent shall not be unreasonably
withheld.
9.7 Third Party Beneficiaries. Nothing in this Agreement, express or implied, is
intended, or will be construed, to confer upon or give any person or entity other than
Consultant and Client, and their respective permitted successors and assigns, any
rights, remedies, or obligations under or by reason of this Agreement.
9.8 Termination. This Agreement may be terminated by either Party for cause upon
seven (7) days written notice to the other Party. Should the other Party fail to cure and
perform in accordance with the terms of this Agreement within such seven-day period,
the Agreement may terminate at the sole discretion of the Party that provided the written
notice. The Client may terminate this Agreement for its convenience. If Client terminates
for its convenience, then Consultant shall be compensated in accordance with the
terms hereof for Services performed, reimbursable costs and expenses incurred prior to
the termination, and reasonable costs incurred as a result of the termination.
9.9 Force Majeure. Neither Party shall be liable for damages or deemed in default of this
Agreement to the extent that any delay or failure in the performance of its obligations
(other than the payment of money) results, without its fault or negligence, from any
cause beyond its reasonable control, including but not limited to acts of God, acts of
civil or military authority, embargoes, pandemics, epidemics, war, riots, insurrections,
fires, explosions, earthquakes, floods, adverse weather conditions, strikes or lock-outs,
declared states of emergency, and changes in laws, statutes, regulations, or
ordinances.
9.10 Disputes, Choice of Law, Venue. In the event of a dispute and prior to exercising
rights at law or under this Agreement, Consultant and Client agree to negotiate all
disputes in good faith for a period of 30 days from the date of notice of such dispute. This
Agreement will be governed by the laws and regulations of the state in which the Project
is located and all disputes and claims shall be heard in the state or federal courts for
that state. Client and Consultant each waive trial by jury.
9.11 Individual Liability. No officer or employee of Consultant, acting within the scope
of employment, shall have individual liability for any acts or omissions, and Client
agrees not to make a claim against any individual officers or employees of Consultant.
9.12 Severability. Should a court of law determine that any clause or section of this
Agreement is invalid, all other clauses or sections shall remain in effect.
9.13 Waiver. The failure of either Party hereto to exercise or enforce any right under this
Agreement shall not constitute a release or waiver of the subsequent exercise or
enforcement of such right.
9.14 Entire Agreement. The terms and conditions set forth herein constitute the entire
understanding of the Parties relating to the provision of Services by Consultant to Client.
This Agreement may be amended only by a written instrument signed by both Parties. In
the event Client issues a purchase order or other documentation to authorize
Consultant’s Services, any conflicting or additional terms of such documentation are
expressly excluded from this Agreement.
Page 74 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.6
Meeting Date
July 20, 2026
Prepared By
Lauren Wipper, Human Resources Manager
Item Description
Post Employment Health Care Savings Plan
Reviewed by
Cal Portner
Justin Dunford
Action Requested
Approve, by motion, adding the following Post Employment Health Care Savings Plan policy to the Personnel
Policy Manual.
Background/Discussion
On June 1, 2026, the City Council approved a Post Employment Health Care Savings Plan (HCSP) policy for
City Hall supervisory staff. While writing that policy, our representative from the Minnesota State Retirement
System (MSRS) felt the City Hall Supervisors group would be an allowed group under MN Statute 352.98.
Upon official review of our policy at MSRS, we were informed that the City Hall Supervisory Staff group
doesn't meet the required parameters.
Staff then reached out to all city supervisors, and this collaboration has resulted in the following policy:
Upon retirement, supervisors shall contribute 100% of their Severance Pay, as paid according to policy,
to their Post-Employment Health Care Savings Plan (HCSP). Employees of this group whose positions
are in pay grades 4E and 5E will also contribute 50% of their Vacation Bank at retirement and 2% of
their gross pay each payroll.
An employee may opt out of this program if they qualify for one of the approved exemptions by
submitting a waiver request form to MSRS. Upon approval from MSRS to opt out, the election to
waive participation in HCSP is irrevocable per plan rules. Should an Employee elect to opt out of
HCSP, Severance Pay and Vacation Bank will be paid to them at retirement.
Upon the death of an employee, contributions can no longer be made to the HCSP. Any payments
owed but not yet paid into the HCSP will be paid out as regular income in accordance with state and
federal law.
Again, we have received confirmation from our representative at MSRS that this is an allowable group and
policy. Following approval by Council, an official application will be made to MSRS before contributions can
begin.
Page 75 of 213
Financial Impact
There is no financial impact on the city, and it will save the city Medicare and Social Security matching costs
on the funds contributed.
Mission/Policy/Goal
Elk River Mission Statement.
Attachments
None
Page 76 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.7
Meeting Date
July 20, 2026
Prepared By
Lindsay Brandner, Senior Administrative Assistant
Item Description
Remodel of Front Reception Area of Police
Department
Reviewed by
David Kuhnly
Cal Portner
Justin Dunford
Action Requested
Approve, by motion, improvements to the front desk/reception area of the police department.
Background/Discussion
On July 6, 2026, the Council was presented with a proposal to update the police department's reception/front
desk area.
The current workstation is more than 10 years old. The workspace design does not provide adequate work
surface area to complete daily tasks efficiently and includes a significant amount of unusable space due to its
layout.
The proposed redesign will maximize the available workspace and improve functionality. The updated
workstation will be more ergonomic and support staff productivity.
Financial Impact
The project cost will be funded by the Building Reserve Fund. This fund is dedicated to improvements,
replacements, and retrofits of existing city building systems.
The anticipated cost of this project is approximately $8,000, including furniture, installation, materials, wall
coverings, and carpet repair. Attached is a quote for the materials and installation. Building Maintenance staff
plans to complete some of the work from the quote, which would decrease the overall cost.
Mission/Policy/Goal
City Mission Statement
Page 77 of 213
Attachments
1. Elk River PD 2D
2. Elk River PD 3D
3. Front Office Quote
Page 78 of 213
Page 79 of 213
Page 80 of 213
Office Furniture Solutions. Inc.
4121 5th St N
Saint Cloud, MN 56303-3769
3202037957
www.fixthisoffice.com
Estimate
ADDRESS
ELK RIVER POLICE DEPARTMENT
13077 ORONO PARKWAY
ELK RIVER, MN 55330
ESTIMATE #DATE
10480 06/10/2026
YOUR SALES REP
CUSTOMER PO # AND CONTACT
INFO HOW CUSTOMER WILL RECEIVE
CHRIS 320-746-5042
chris@fixthisoffice.com
PD RECEPTION OFS Delivery & Install
DESCRIPTION QTY RATE AMOUNT
4nTable CUSTOM LEFT CURVED CORNER TOP WITH ANGLED EDGE
ON WALL SIDE. 30" x 75" x 48" x 24"
1 760.00 760.00T
4nTable WORK SURFACE: 24" x 52" WITH ONE RADIUS CORNER 1 215.00 215.00T
3nFiling HARMONY SERIES METAL MOBILE BOX FILE PEDESTAL IN
BLACK.
1 330.00 330.00T
4nTable HETB-3L3S
- BLK
3 STAGE 3 LEG ELECTRIC SIT STAND BASE WITH ADDED
STRINGER BAR - BLACK
1 808.50 808.50T
4nTable CUSTOM RIGHT CURVED CORNER TOP WITH ANGLED EDGE
ON ALL SIDE: 30" x 82" x 42 x 24"
1 760.00 760.00T
4nTable WORK SURFACE: 24" x 18" WITH ONE RADIUS CORNER 1 150.00 150.00T
3nFiling HARMONY SERIES METAL MOBILE BOX FILE PEDESTAL IN
BLACK
1 330.00 330.00T
4nTable HETB-3L3S
- BLK
3 STAGE 3 LEG ELECTRIC SIT STAND BASE WITH ADDED
STRINGER BAR - BLACK
1 808.50 808.50T
FREIGHT FREIGHT 1 200.00 200.00T
INSTALLATION DELIVERY AND INSTALLATION
ASSUMES AREA IS CLEARED
ASSUMES M-F 8-5
1 560.00 560.00T
State of MN
Required Delivery
Tax Fee
State of MN Required Road Improvement & Delivery Fee
Delivery
Received
by:_________________________________________________
Printed
Name:________________________________________________
1 0.50 0.50
Page 81 of 213
DESCRIPTION QTY RATE AMOUNT
Date:________________
Thank you for the opportunity to provide you with this estimate!
Terms are Due on Receipt unless your total is over $2,000 which will require
50% down at the time of order with net due upon delivery.
Estimates are valid for 7 days. **Prices may change due to the possibility of
tariffs with Canada and other trade countries. We will make every effort to
provide you with accurate pricing at the time of your order to eliminate the
need for an additional tariff surcharge being added to your invoice.
Used items quoted are subject to availability.
Delivery & installation are not included unless specifically itemized above and
we have a current Delivery & Install Questionnaire on file for this project.
A Finance Charge of 1.5% per month (18% APR) will be added to past due
balances.
SUBTOTAL 4,922.50
TAX 0.00
TOTAL $4,922.50
Accepted By Accepted Date
Page 82 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.8
Meeting Date
July 20, 2026
Prepared By
Joshua Mollan, Economic Development Specialist
Item Description
Greater MN Business Development Public
Infrastructure Grant Agreement 2026-24
Reviewed by
Brent O'Neil
Cal Portner
Justin Dunford
Action Requested
Approve, by motion, the Greater Minnesota Business Development Public Infrastructure Grant agreement.
Background/Discussion
The Council approved Resolution 26-18 in March, which supported a grant application to the state. The
Minnesota Department of Employment and Economic Development approved the grant and has requested
the Council's approval of the grant agreement. A recap of the project and grant is below:
With Crystal Distribution Inc.'s (CDI) facility expansion plans on Twin Lakes Road, the city applied for state
funds under the Greater Minnesota Business Development Public Infrastructure grant program (BDPI). The
company proposed a 45,000 sf addition to its present operations, which would add at least 20 jobs in the next
two years. The project is targeting an August 2026 construction. BDPI incentivizes businesses by providing
grant funds to assist eligible applicants with the development of costly public infrastructure to expand
economic development through the growth of businesses. This program requires a minimum 50% local match.
Based on the identified BDPI grant funds available, the city applied for $92,000, which is anticipated to be less
than 50% of the total infrastructure project cost and meets the local match requirement.
The infrastructure project is a relocation of a city-owned public stormwater pipe that currently runs near and
parallel to the CDI/EDA property line. For CDI to expand north, following an EDA land sale, the stormwater
pipe must be relocated. Engineers are finalizing the specific relocation route and design. The estimated cost
for the infrastructure project is $242,000. The 50% match will be provided by the EDA. Additionally, the EDA
and CDI have agreed to jointly cover any overages.
The BDPI agreement stipulates that an easement and the agreement shall be effective for equal to or greater
than 125% of the useful life of the real property, which was determined to be 30 years, meaning the term of
the agreement shall be at least 37.5 years. However, the easement will need to remain in place beyond this
term so long as the storm pipe is needed.
Financial Impact
The funding for this project will be from the EDA, though the state requires the city to be the applicant. In
Page 83 of 213
addition, EDA's cost on this pipe is eligible for tax increment financing reimbursement. $92,000 from this state
grant will offset EDA costs for these infrastructure charges.
Mission/Policy/Goal
Support the growth and development of the community.
Attachments
1. BDPI Grant Agreement
Page 84 of 213
Generic GO Bond Proceeds Ver – 8/9/22
Grant Agreement for Program Construction Grants
State of Minnesota: Department of Employment
and Economic Development
Greater Minnesota Business Development Public
Infrastructure Grant Program
General Obligation Bond Proceeds
Grant Agreement - Construction Grant
for the
CDI Elk River Expansion BDPI Project
GRANT #BDPI-26-0001-O-FY26
Page 85 of 213
Generic GO Bond Proceeds i Ver – 8/9/22
Grant Agreement for Program Construction Grants
TABLE OF CONTENTS
RECITALS
Article I - DEFINITIONS
Section 1.01 – Defined Terms
Article II - GRANT
Section 2.01 – Grant of Monies
Section 2.02 – Public Ownership
Section 2.03 – Use of Grant Proceeds
Section 2.04 – Operation of the Real Property and Facility
Section 2.05 – Public Entity Representations and Warranties
Section 2.06 – Ownership by Leasehold or Easement
Section 2.07 – Event(s) of Default
Section 2.08 – Remedies
Section 2.09 – Notification of Event of Default
Section 2.10 – Survival of Event of Default
Section 2.11 – Term of Grant Agreement
Section 2.12 – Modification and/or Early Termination of Grant
Section 2.13 – Excess Funds
Article III – USE CONTRACTS
Section 3.01 – General Provisions
Section 3.02 – Initial Term and Renewal
Section 3.03 – Reimbursement of Counterparty
Section 3.04 – Receipt of Monies Under a Use Contract
Article IV – SALE
Section 4.01 – Sale
Section 4.02 – Proceeds of a Sale
Article V – COMPLIANCE WITH G.O. COMPLIANCE LEGISLATION
AND THE COMMISSIONER’S ORDER
Section 5.01 – State Bond Financed Property
Section 5.02 – Preservation of Tax Exempt Status
Section 5.03 – Changes to G.O. Compliance Legislation or the
Commissioner’s Order
Article VI – DISBURSEMENT OF GRANT PROCEEDS
Section 6.01– The Disbursements
Section 6.02 – Draw Requisitions
Section 6.03 – Additional Funds
Section 6.04 – Conditions Precedent to Any Disbursement
Section 6.05 – Construction Inspections
Page 86 of 213
Generic GO Bond Proceeds ii Ver – 8/9/22
Grant Agreement for Program Construction Grants
Article VII- MISCELLANEOUS
Section 7.01 – Insurance
Section 7.02 – Condemnation
Section 7.03 – Use, Maintenance, Repair and Alterations
Section 7.04 – Record Keeping and Reporting
Section 7.05 – Inspections by State Entity
Section 7.06 – Data Practices
Section 7.07 – Non-Discrimination
Section 7.08 – Workers’ Compensation
Section 7.09 – Antitrust Claims
Section 7.10 – Review of Plans and Cost Estimates
Section 7.11 – Prevailing Wages
Section 7.12 – Liability
Section 7.13 – Indemnification by the Public Entity
Section 7.14 – Relationship of the Parties
Section 7.15 – Notices
Section 7.16 – Binding Effect and Assignment or Modification
Section 7.17 – Waiver
Section 7.18 – Entire Agreement
Section 7.19 – Choice of Law and Venue
Section 7.20 – Severability
Section 7.21 – Time of Essence
Section 7.22 – Counterparts
Section 7.23 – Matching Funds
Section 7.24 – Source and Use of Funds
Section 7.25 – Project Completion Schedule
Section 7.26 – Third-Party Beneficiary
Section 7.27 – Public Entity Tasks
Section 7.28 – State Entity and Commissioner
Required Acts and Approvals.
Section 7.29 – Applicability to Real Property and Facility
Section 7.30 – E-Verification
Section 7.31 – Additional Requirements
Attachment I – DECLARATION
Attachment II – LEGAL DESCRIPTION OF REAL PROPERTY
Attachment III – SOURCE AND USE OF FUNDS
Attachment IV – PROJECT COMPLETION SCHEDULE
Page 87 of 213
Generic GO Bond Proceeds 1 Ver – 8/9/22
Grant Agreement for Program Construction Grants
General Obligation Bond Proceeds
Grant Agreement – Construction Grant
CDI Elk River Expansion BDPI Project
Grant #BDPI-26-0001-O-FY26
THIS AGREEMENT shall be effective as of March 23, 2026, and is between the City of
Elk River, a Statutory City (the “Public Entity”), and the Minnesota Department of Employment
and Economic Development (the “State Entity”).
RECITALS
A. The State Entity has created and is operating the Greater Minnesota Business
Development Public Infrastructure Program (“State Program”) under the authority granted by
Minn. Stat. § 116J.431 and all rules related to such legislation (“State Program Enabling
Legislation”).
B. Under the State Program, the State Entity is authorized to provide grants that are funded
with proceeds of state general obligation bonds authorized to be issued under Article XI, § 5(a) of
the Minnesota Constitution.
C. Under the State Program the recipients of a grant must use such funds to perform those
functions delineated in the State Program Enabling Legislation.
D. The Public Entity submitted, if applicable, a grant application to the State Entity in
which the Public Entity requests a grant from the State Program the proceeds of which will be used
for the purposes delineated in such grant application.
E. The Public Entity has applied to and been selected by the State Entity for a receipt of
a grant from the State Program in an amount of $92,000 (“Program Grant”), the proceeds must be
used by the Public Entity to perform those functions and activities imposed by the State Entity
under the State Program and, if applicable, delineated in that certain grant application that the
Public Entity submitted March 18, 2026 to the State Entity.
F. Under the provisions contained in Minn. Stat. § 444.075, the Public Entity has been given
the authority to perform those functions and activities required of it under the State Program and, if
applicable, delineated in the Grant.
G. The Public Entity’s receipt and use of the Program Grant to acquire an ownership
interest in and/or improve real property (“Real Property”) and, if applicable, structures situated
thereon (“Facility”) will cause the Public Entity’s ownership interest in all of such real property
and structures to become “state bond financed property”, as such term is used in Minn. Stat. §
16A.695 (“G.O. Compliance Legislation”) and in that certain “Fourth Order Amending Order of
the Commissioner of Finance Relating to Use and Sale of State Bond Financed Property” executed
by the Commissioner of Minnesota Management and Budget and dated July 30, 2012, as amended
Page 88 of 213
Generic GO Bond Proceeds 2 Ver – 8/9/22
Grant Agreement for Program Construction Grants
(“Commissioner’s Order”), even though such funds may only be a portion of the funds being used
to acquire such ownership interest and/or improve such real property and structures and that such
funds may be used to only acquire such ownership interest and/or improve a part of such real
property and structures.
H. The Public Entity and the State Entity desire to set forth herein the provisions relating
to the granting and disbursement of the proceeds of the Program Grant to the Public Entity and the
operation of the Real Property and, if applicable, Facility.
IN CONSIDERATION of the grant described and other provisions in this Agreement, the
parties to this Agreement agree as follows.
Article I
DEFINITIONS
Section 1.01 Defined Terms. As used in this Agreement, the following terms shall have
the meanings set out respectively after each such term (the meanings to be equally applicable to
both the singular and plural forms of the terms defined), unless the context specifically indicates
otherwise:
“Agreement” - means this General Obligation Bond Proceeds Grant Agreement -
Construction Grant for the CDI Elk River Expansion BDPI Project under the Greater
Minnesota Business Development Public Infrastructure Program, as such exists on its
original date and any amendments, modifications or restatements thereof.
“Approved Debt” – means public or private debt of the Public Entity that is consented
to and approved, in writing, by the Commissioner of MMB, the proceeds of which were or
will used to acquire an ownership interest in or improve the Real Property and, if applicable,
Facility, other than the debt on the G.O. Bonds. Approved Debt includes, but is not limited
to, all debt delineated in Attachment III to this Agreement; provided, however, the
Commissioner of MMB is not bound by any amounts delineated in such attachment unless
he/she has consented, in writing, to such amounts.
“Architect”, if any - means the person/entity, which will administer the Construction
Contract Documents on behalf of the Public Entity.
“Code” - means the Internal Revenue Code of 1986, as amended from time to time, and
all treasury regulations, revenue procedures and revenue rulings issued pursuant thereto.
“Commissioner of MMB” - means the commissioner of Minnesota Management and
Budget, and any designated representatives thereof.
“Commissioner’s Order” - means the “Fourth Order Amending Order of the
Commissioner of Finance Relating to Use and Sale of State Bond Financed Property”
executed by the Commissioner of Minnesota Management and Budget and dated July 30,
2012, as amended.
Page 89 of 213
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Grant Agreement for Program Construction Grants
“Completion Date” – means December 31, 2028, the date of projected completion of
the Project.
“Contractor” - means any person engaged to work on or to furnish materials and
supplies for the Construction Items including, if applicable, a general contractor.
“Construction Contract Documents” - means the document or documents, in form and
substance acceptable to the State Entity, including but not limited to any construction plans
and specifications and any exhibits, amendments, change orders, modifications thereof or
supplements thereto, which collectively form the contract between the Public Entity and the
Contractor or Contractors for the completion of the Construction Items on or before the
Completion Date for either a fixed price or a guaranteed maximum price.
“Construction Items” – means the work to be performed under the Construction
Contract Documents.
“Counterparty” - means any entity with which the Public Entity contracts under a Use
Contract. This definition is only needed and only applies if the Public Entity enters into an
agreement with another party under which such other party will operate the Real Property,
and if applicable, Facility. For all other circumstances this definition is not needed and
should be ignored and treated as if it were left blank, and any reference to this term in this
Agreement shall be ignored and treated as if the reference did not exist.
“Declaration” - means a declaration, or declarations, in the form contained in
Attachment I to this Agreement and all amendments thereto, indicating that the Public
Entity’s ownership interest in the Real Property and, if applicable, Facility is bond financed
property within the meaning of the G.O. Compliance Legislation and is subject to certain
restrictions imposed thereby.
“Disbursement(s)” – means a disbursement made or to be made by the State Entity to
the Public Entity and disbursed in accordance with the provisions contained in Article VI
hereof.
“Draw Requisition” - means a draw requisition that the Public Entity, or its designee,
submits to the State Entity when a Disbursement is requested, as referred to in Section 6.02.
“Event of Default” - means one or more of those events delineated in Section 2.07.
“Facility”, if applicable, - means, CDI Elk River Expansion BDPI Project which is
located, or will be constructed and located, on the Real Property and all equipment that is a
part thereof that was purchased with the proceeds of the Program Grant.
“Fair Market Value” – means either (i) the price that would be paid by a willing and
qualified buyer to a willing and qualified seller as determined by an appraisal that assumes
that all liens and encumbrances on the property being sold that negatively affect the value of
Page 90 of 213
Generic GO Bond Proceeds 4 Ver – 8/9/22
Grant Agreement for Program Construction Grants
such property, will be paid and released, or (ii) the price bid by a purchaser under a public
bid procedure after reasonable public notice, with the proviso that all liens and encumbrances
on the property being sold that negatively affect the value of such property, will be paid and
released at the time of acquisition by the purchaser.
“G.O. Bonds” - means that portion of the State general obligation bonds issued under
the authority granted in Article XI, § 5(a) of the Minnesota Constitution the proceeds of
which are used to fund the Program Grant and any bonds issued to refund or replace such
bonds.
“G.O. Compliance Legislation” - means Minn. Stat. § 16A.695, as it may be amended,
modified or replaced from time to time unless such amendment, modification or replacement
imposes an unconstitutional impairment of a contract right.
“Initial Acquisition and Betterment Costs” – means the cost to acquire the Public
Entity’s ownership interest in the Real Property and, if applicable, Facility if the Public Entity
does not already possess the required ownership interest, and the costs of betterments of the
Real Property and, if applicable, Facility; provided, however, the Commissioner of MMB is
not bound by any specific amount of such alleged costs unless he/she has consented, in
writing, to such amount.
“Inspecting Engineer”, if any - means the State Entity's construction inspector, or its
designated consulting engineer.
“Leased/Easement Premises” - means the real estate and structures, if any, that are
leased to the Public Entity under a Real Property/Facility Lease or granted to the Public
Entity under an easement. This definition is only needed and only applies if the Public
Entity’s ownership interest in the Real Property, the Facility, if applicable, or both is by way
of a leasehold interest under a Real Property/Facility Lease or by way of an easement. For
all other circumstances this definition is not needed and should be ignored and treated as if
it were left blank, and any reference to this term in this Agreement shall be ignored and
treated as if the reference did not exist.
“Lessor/Grantor” – means the fee owner/lessor or grantor of the Leased/Easement
Premises. This definition is only needed and only applies if the Public Entity’s ownership
interest in the Real Property, the Facility, if applicable, or both, is by way of a leasehold
interest under a Real Property/Facility Lease or by way of an easement. For all other
circumstances this definition is not needed and should be ignored and treated as if it were
left blank, and any reference to this term in this Agreement shall be ignored and treated as
if the reference did not exist.
“Outstanding Balance of the Program Grant” – means the portion of the Program Grant
that has been disbursed to or on behalf of the Public Entity minus any portions thereof
previously paid back to the Commissioner of MMB.
Page 91 of 213
Generic GO Bond Proceeds 5 Ver – 8/9/22
Grant Agreement for Program Construction Grants
“Ownership Value”, if any – means the value, if any, of the Public Entity’s ownership
interest in the Real Property and, if applicable, Facility that existed concurrent with the Public
Entity’s execution of this Agreement. Such value shall be established by way of an appraisal
or by such other manner as may be acceptable to the State Entity and the Commissioner of
MMB. The parties hereto agree and acknowledge that such value is or Not Applicable;
provided, however, the Commissioner of MMB is not bound by any inserted dollar amount
unless he/she has consented, in writing, to such amount. If no dollar amount is inserted and
the blank “Not Applicable” is not checked, a rebuttable presumption that the Ownership
Value is $0.00 shall be created. (The blank “Not Applicable” should only be selected and
checked when a portion of the funds delineated in Attachment III attached hereto are to be
used to acquire the Public Entity’s ownership interest in the Real Property and, if applicable,
Facility, and in such event the value of such ownership interest should be shown in
Attachment III and not in this definition for Ownership Value).
“Program Grant” - means a grant of monies from the State Entity to the Public Entity
in the amount identified as the “Program Grant” in Recital E to this Agreement, as the amount
thereof may be modified under the provisions contained herein.
“Project” - means the Public Entity’s acquisition, if applicable, of the ownership
interests in the Real Property and, if applicable, Facility denoted in Section 2.02 along with
the performance of activities denoted in Section 2.03. (If the Public Entity is not using any
portion of the Program Grant to acquire the ownership interest denoted in Section 2.02, then
this definition for Project shall not include the acquisition of such ownership interest, and
the value of such ownership interest shall not be included in Attachment III hereto and
instead shall be included in the definition for Ownership Value under this Section.)
“Public Entity” - means the entity identified as the “Public Entity” in the lead-in
paragraph of this Agreement.
“Real Property” - means the real property located in the County of Sherburne, State of
Minnesota, legally described in Attachment II to this Agreement.
“Real Property/Facility Lease” - means a long term lease of the Real Property, the
Facility, if applicable, or both by the Public Entity as lessee thereunder. This definition is
only needed and only applies if the Public Entity’s ownership interest in the Real Property,
the Facility, if applicable, or both is a leasehold interest under a lease. For all other
circumstances this definition is not needed and should be ignored and treated as if it were
left blank, and any reference to this term in this Agreement shall be ignored and treated as
if the reference did not exist.
“State Entity” - means the entity identified as the “State Entity” in the lead-in paragraph
of this Agreement.
“State Program” – means the program delineated in the State Program Enabling
Legislation.
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Grant Agreement for Program Construction Grants
“State Program Enabling Legislation” – means the legislation contained in the
Minnesota statute(s) delineated in Recital A and all rules related to such legislation.
“Subsequent Betterment Costs” – means the costs of betterments of the Real Property
and, if applicable, Facility that occur subsequent to the date of this Agreement, are not part
of the Project, would qualify as a public improvement of a capital nature (as such term in
used in Minn. Constitution Art. XI, §5(a) of the Minnesota Constitution), and the cost of
which has been established by way of written documentation that is acceptable to and
approved, in writing, by the State Entity and the Commissioner of MMB.
“Use Contract” - means a lease, management contract or other similar contract between
the Public Entity and any other entity that involves or relates to any part of the Real Property
and/or, if applicable, Facility. This definition is only needed and only applies if the Public
Entity enters into an agreement with another party under which such other party will operate
the Real Property and/or, if applicable, Facility. For all other circumstances this definition
is not needed and should be ignored and treated as if it were left blank, and any reference to
this term in this Agreement shall be ignored and treated as if the reference did not exist.
“Useful Life of the Real Property and, if applicable, Facility” – means the term set forth
in Section 2.05.X, which was derived as follows: (i) 30 years for Real Property that has no
structure situated thereon or if any structures situated thereon will be removed, and no new
structures will be constructed thereon, (ii) the remaining useful life of the Facility as of the
effective date of this Agreement for Facilities that are situated on the Real Property as of the
date of this Agreement, that will remain on the Real Property, and that will not be bettered,
or (iii) the useful life of the Facility after the completion of the construction or betterments
for Facilities that are to be constructed or bettered.
Article II
GRANT
Section 2.01 Grant of Monies. The State Entity shall make and issue the Program Grant
to the Public Entity and disburse the proceeds in accordance with the provisions of this Agreement.
The Program Grant is not intended to be a loan even though the portion thereof that is disbursed
may need to be returned to the State Entity or the Commissioner of MMB under certain
circumstances.
Section 2.02 Public Ownership. The Public Entity acknowledges and agrees that the
Program Grant is being funded with the proceeds of G.O. Bonds, and as a result thereof all of the
Real Property and, if applicable, Facility must be owned by one or more public entities. Such
ownership may be in the form of fee ownership, a Real Property/Facility Lease, or an easement.
In order to establish that this public ownership requirement is satisfied, the Public Entity represents
and warrants to the State Entity that it has, or will acquire, the following ownership interests in the
Real Property and, if applicable, Facility, and, in addition, that it possess, or will possess, all
easements necessary for the operation, maintenance and management of the Real Property and, if
applicable, Facility in the manner specified in Section 2.04:
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(Check the appropriate box for the Real Property and, if applicable, for the Facility.)
Ownership Interest in the Real Property.
Fee simple ownership of the Real Property.
A Real Property/Facility Lease for the Real Property that complies with the
requirements contained in Section 2.06.
(If the term of the Real Property/Facility Lease is for a term authorized by a
Minnesota statute, rule or session law, then insert the citation:
________________.)
X An easement for the Real Property that complies with the requirements
contained in Section 2.06.
(If the term of the easement is for a term authorized by a Minnesota statute,
rule or session law, then insert the citation: ________________.)
Ownership Interest in, if applicable, the Facility.
X Fee simple ownership of the Facility.
A Real Property/Facility Lease for the Facility that complies with all of the
requirements contained in Section 2.06.
(If the term of the Real Property/Facility Lease is for a term authorized by a
Minnesota statute, rule or session law, then insert the citation:
______________.)
Not applicable because there is no Facility.
Section 2.03 Use of Grant Proceeds. The Public Entity shall use the Program Grant
solely to reimburse itself for expenditures it has already made, or will make, in the performance
of the following activities, and may not use the Program Grant for any other purpose.
(Check all appropriate boxes.)
Acquisition of fee simple title to the Real Property.
Acquisition of a leasehold interest in the Real Property.
Acquisition of an easement for the Real Property.
Improvement of the Real Property.
Acquisition of fee simple title to the Facility.
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Acquisition of a leasehold interest in the Facility.
X Construction of the Facility.
Renovation of the Facility.
.
(Describe other or additional purposes.)
Section 2.04 Operation of the Real Property and Facility. The Real Property and, if
applicable, Facility must be used by the Public Entity or the Public Entity must cause such Real
Property and, if applicable, Facility to be used for those purposes required by the State Program
and in accordance with the information contained in the grant application, or for such other
purposes and uses as the Minnesota legislature may from time to time designate, and for no other
purposes or uses.
The Public Entity may enter into Use Contracts with Counterparties for the operation of all
or any portion of the Real Property and, if applicable, Facility; provided that all such Use Contracts
must have been approved, in writing, by the Commissioner of MMB and fully comply with all of
the provisions contained in Sections 3.01, 3.02 and 3.03.
The Public Entity must, whether it is operating the Real Property and, if applicable, Facility
or has contracted with a Counterparty under a Use Contract to operate all or any portion of the
Real Property and, if applicable, Facility, annually determine that the Real Property and, if
applicable, Facility is being used for the purpose required by this Agreement, and shall annually
supply a statement, sworn to before a notary public, to such effect to the State Entity and the
Commissioner of MMB.
For those programs, if any, that the Public Entity will directly operate on all or any portion
of the Real Property and, if applicable, Facility, the Public Entity covenants with and represents
and warrants to the State Entity that: (i) it has the ability and a plan to fund such programs, (ii) it
has demonstrated such ability by way of a plan that it submitted to the State Entity, and (iii) it will
annually adopt, by resolution, a budget for the operation of such programs that clearly shows that
forecast program revenues along with other funds available for the operation of such program will
be equal to or greater than forecast program expenses for each fiscal year, and will supply to the
State Entity and the Commissioner of MMB certified copies of such resolution and budget.
For those programs, if any, that will be operated on all or any portion of the Real Property
and, if applicable, Facility by a Counterparty under a Use Contract, the Public Entity covenants
with and represents and warrants to the State Entity that: (i) it will not enter into such Use Contract
unless the Counterparty has demonstrated that it has the ability and a plan to fund such program,
(ii) it will require the Counterparty to provide an initial program budget and annual program
budgets that clearly show that forecast program revenues along with other funds available for the
operation of such program (from all sources) will be equal to or greater than forecast program
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expenses for each fiscal year, (iii) it will promptly review all submitted program budgets to
determine if such budget clearly and accurately shows that the forecast program revenues along
with other funds available for the operation of such program (from all sources) will be equal to or
greater than forecast program expenses for each fiscal year, (iv) it will reject any program budget
that it believes does not accurately reflect forecast program revenues or expenses or does not show
that forecast program revenues along with other funds available for the operation of such program
(from all sources) will be equal to or greater than forecast program expenses, and require the
Counterparty to prepare and submit a revised program budget, and (v) upon receipt of a program
budget that it believes accurately reflects forecast program revenues and expenses and that shows
that forecast program revenues along with other funds available for the operation of such program
(from all sources) will be equal to or greater than forecast program expenses, it will approve such
budget by resolution and supply to the State Entity and the Commissioner of MMB certified copies
of such resolution and budget.
Section 2.05 Public Entity Representations and Warranties. The Public Entity further
covenants with, and represents and warrants to the State Entity as follows:
A. It has legal authority to enter into, execute, and deliver this Agreement, the
Declaration, and all documents referred to herein, and it has taken all actions necessary to its
execution and delivery of such documents.
B. It has legal authority to use the Program Grant for the purpose or purposes
described in the State Program Enabling Legislation.
C. It has legal authority to operate the State Program and the Real Property and, if
applicable, Facility for the purposes required by the State Program and for the functions and
activities proposed in the grant application.
D. This Agreement, the Declaration, and all other documents referred to herein are
the legal, valid and binding obligations of the Public Entity enforceable against the Public
Entity in accordance with their respective terms.
E. It will comply with all of the terms, conditions, provisions, covenants,
requirements, and warranties in this Agreement, the Declaration, and all other documents
referred to herein.
F. It will comply with all of the provisions and requirements contained in and
imposed by the G.O. Compliance Legislation, the Commissioner’s Order, and the State
Program.
G. It has made no material false statement or misstatement of fact in connection with
its receipt of the Program Grant, and all of the information it has submitted or will submit to
the State Entity or Commissioner of MMB relating to the Program Grant or the disbursement
of any of the Program Grant is and will be true and correct.
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H. It is not in violation of any provisions of its charter or of the laws of the State of
Minnesota, and there are no actions, suits, or proceedings pending, or to its knowledge
threatened, before any judicial body or governmental authority against or affecting it relating
to the Real Property and, if applicable, Facility, or its ownership interest therein, and it is not
in default with respect to any order, writ, injunction, decree, or demand of any court or any
governmental authority which would impair its ability to enter into this Agreement, the
Declaration, or any document referred to herein, or to perform any of the acts required of it
in such documents.
I. Neither the execution and delivery of this Agreement, the Declaration, or any
document referred to herein nor compliance with any of the terms, conditions, requirements,
or provisions contained in any of such documents is prevented by, is a breach of, or will
result in a breach of, any term, condition, or provision of any agreement or document to
which it is now a party or by which it is bound.
J. The contemplated use of the Real Property and, if applicable, Facility will not
violate any applicable zoning or use statute, ordinance, building code, rule or regulation, or
any covenant or agreement of record relating thereto.
K. The Project will be completed in full compliance with all applicable laws,
statutes, rules, ordinances, and regulations issued by any federal, state, or local political
subdivisions having jurisdiction over the Project.
L. All applicable licenses, permits and bonds required for the performance and
completion of the Project have been, or will be, obtained.
M. All applicable licenses, permits and bonds required for the operation of the Real
Property and, if applicable, Facility in the manner specified in Section 2.04 have been, or
will be, obtained.
N. It will operate, maintain, and manage the Real Property and, if applicable, Facility
or cause the Real Property and, if applicable, Facility, to be operated, maintained and
managed in compliance with all applicable laws, statutes, rules, ordinances, and regulations
issued by any federal, state, or local political subdivisions having jurisdiction over the Real
Property and, if applicable, Facility.
O. It will fully enforce the terms and conditions contained in any Use Contract.
P. It has complied with the matching funds requirement, if any, contained in Section
7.23.
Q. It will not, without the prior written consent of the State Entity and the
Commissioner of MMB, allow any voluntary lien or encumbrance or involuntary lien or
encumbrance that can be satisfied by the payment of monies and which is not being actively
contested to be created or exist against the Public Entity’s ownership interest in the Real
Property or, if applicable, Facility, or the Counterparty’s interest in the Use Contract,
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whether such lien or encumbrance is superior or subordinate to the Declaration. Provided,
however, the State Entity and the Commissioner of MMB will consent to any such lien or
encumbrance that secures the repayment of a loan the repayment of which will not impair or
burden the funds needed to operate the Real Property and, if applicable, Facility in the
manner specified in Section 2.04, and for which the entire amount is used (i) to acquire
additional real estate that is needed to so operate the Real Property and, if applicable, Facility
in accordance with the requirements imposed under Section 2.04 and will be included in and
as part of the Public Entity’s ownership interest in the Real Property and, if applicable,
Facility, and/or (ii) to pay for capital improvements that are needed to so operate the Real
Property and, if applicable, Facility in accordance with the requirements imposed under
Section 2.04.
R. It reasonably expects to possess the ownership interest in the Real Property and,
if applicable, Facility described Section 2.02 for the entire Useful Life of the Real Property
and, if applicable, Facility, and it does not expect to sell such ownership interest.
S. It does not reasonably expect to receive payments under a Use Contract in excess
of the amount the Public Entity needs and is authorized to use to pay the operating expenses
of the portion of the Real Property and, if applicable, Facility that is the subject of the Use
Contract or to pay the principal, interest, redemption premiums, and other expenses on any
Approved Debt.
T. It will supply, or cause to be supplied, whatever funds are needed above and
beyond the amount of the Program Grant to complete and fully pay for the Project.
U. The Construction Items will be completed substantially in accordance with the
Construction Contract Documents by the Completion Date, and all such items along with, if
applicable, the Facility will be situated entirely on the Real Property.
V. It will require the Contractor or Contractors to comply with all rules, regulations,
ordinances, and laws bearing on its performance under the Construction Contract
Documents.
W. It has or will promptly record a fully executed Declaration with the appropriate
governmental office and deliver a copy thereof to the State Entity and to Minnesota
Management and Budget (attention: Capital Projects Manager) that contains all of the
recording information.
X. The Useful Life of the Real Property and, if applicable, Facility is 30 years.
Y. It shall furnish such satisfactory evidence regarding the representations and
warranties described herein as may be required and requested by either the State Entity or
the Commissioner of MMB.
Section 2.06 Ownership by Leasehold or Easement. This Section shall only apply if the
Public Entity’s ownership interest in the Real Property, the Facility, if applicable, or both is by
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way of a Real Property/Facility Lease or an easement. For all other circumstances this Section is
not needed and should be ignored and treated as if it were left blank, and any reference to this
Section in this Agreement shall be ignored and treated as if the reference did not exist.
A. A Real Property/Facility Lease or easement must comply with the following
provisions.
1. It must be in form and contents acceptable to the Commissioner of MMB,
and specifically state that it may not be modified, restated, amended, changed in any
way, or prematurely terminated or cancelled without the prior written consent and
authorization by the Commissioner of MMB.
2. It must be for a term that is equal to or greater than 125% of the Useful Life
of the Real Property and, if applicable, Facility, or such other period of time specifically
authorized by a Minnesota statute, rule or session law.
3. Any payments to be made under it by the Public Entity, whether designated
as rent or in any other manner, must be by way of a single lump sum payment that is
due and payable on the date that it is first made and entered into.
4. It must not contain any requirements or obligations of the Public Entity that
if not complied with could result in a termination thereof.
5. It must contain a provision that provides sufficient authority to allow the
Public Entity to operate the Real Property and, if applicable, Facility in accordance
with the requirements imposed under Section 2.04.
6. It must not contain any provisions that would limit or impair the Public
Entity’s operation of the Real Property and, if applicable, Facility in accordance with
the requirements imposed under Section 2.04.
7. It must contain a provision that prohibits the Lessor/Grantor from creating
or allowing, without the prior written consent of the State Entity and the Commissioner
of MMB, any voluntary lien or encumbrance or involuntary lien or encumbrance that
can be satisfied by the payment of monies and which is not being actively contested
against the Leased/Easement Premises or the Lessor’s/Grantor’s interest in the Real
Property/Facility Lease or easement, whether such lien or encumbrance is superior or
subordinate to the Declaration. Provided, however, the State Entity and the
Commissioner of MMB will consent to any such lien or encumbrance if the holder of
such lien or encumbrance executes and files of record a document under which such
holder subordinates such lien or encumbrance to the Real Property/Facility Lease or
easement and agrees that upon foreclosure of such lien or encumbrance to be bound by
and comply with all of the terms, conditions and covenants contained in the Real
Property/Facility Lease or easement as if such holder had been an original
Lessor/Grantor under the Real Property/Facility Lease or easement.
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8. It must acknowledge the existence of this Agreement and contain a
provision that the terms, conditions and provisions contained in this Agreement shall
control over any inconsistent or contrary terms, conditions and provisions contained in
the Real Property/Facility Lease or easement.
9. It must provide that any use restrictions contained therein only apply as
long as the Public Entity is the lessee under the Real Property/Facility Lease or grantee
under the easement, and that such use restrictions will terminate and not apply to any
successor lessee or grantee who purchases the Public Entity’s ownership interest in the
Real Property/Facility Lease or easement. Provided, however, it may contain a
provisions that limits the construction of any new structures on the Real Property or
modifications of any existing structures on the Real Property without the written
consent of Lessor/Grantor, which will apply to any such successor lessee or grantee.
10. It must allow for a transfer thereof in the event that the lessee under the
Real Property/Lease or grantee under the easement makes the necessary determination
to sell its interest therein, and allow such interest to be transferred to the purchaser of
such interest.
11. It must contain a provision that prohibits and prevents the sale of the
underlying fee interest in the Real Property and, if applicable, Facility without first
obtaining the written consent of the Commissioner of MMB.
12 The Public Entity must be the lessee under the Real Property/Lease or
grantee under the easement.
B. The provisions contained in this Section are not intended to and shall not prevent
the Public Entity from including additional provisions in the Real Property/Facility Lease or
easement that are not inconsistent with or contrary to the requirements contained in this
Section.
C. The expiration of the term of a Real Property/Facility Lease or easement shall not
be an event that requires the Public Entity to reimburse the State Entity for any portion of the
Program Grant, and upon such expiration the Public Entity’s ownership interest in the Real
Property and, if applicable, Facility shall no longer be subject to this Agreement.
D. The Public Entity shall fully and completely comply with all of the terms,
conditions and provisions contained in a Real Property/Facility Lease or easement, and shall
obtain and file, in the Office of the County Recorder or the Registrar of Titles, whichever is
applicable, the Real Property/Facility Lease or easement or a short form or memorandum
thereof.
Section 2.07 Event(s) of Default. The following events shall, unless waived in writing
by the State Entity and the Commissioner of MMB, constitute an Event of Default under this
Agreement upon either the State Entity or the Commissioner of MMB giving the Public Entity 30
days written notice of such event and the Public Entity’s failure to cure such event during such 30
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day time period for those Events of Default that can be cured within 30 days or within whatever
time period is needed to cure those Events of Default that cannot be cured within 30 days as long
as the Public Entity is using its best efforts to cure and is making reasonable progress in curing
such Events of Default, however, in no event shall the time period to cure any Event of Default
exceed 6 months unless otherwise consented to, in writing, by the State Entity and the
Commissioner of MMB.
A. If any representation, covenant, or warranty made by the Public Entity in this
Agreement, in any Draw Requisition, in any other document furnished pursuant to this
Agreement, or in order to induce the State Entity to disburse any of the Program Grant, shall
prove to have been untrue or incorrect in any material respect or materially misleading as of
the time such representation, covenant, or warranty was made.
B. If the Public Entity fails to fully comply with any provision, term, condition,
covenant, or warranty contained in this Agreement, the Declaration, or any other document
referred to herein.
C. If the Public Entity fails to fully comply with any provision, term, condition,
covenant or warranty contained in the G.O. Compliance Legislation, the Commissioner’s
Order, or the State Program Enabling Legislation.
D. If the Public Entity fails to complete the Project, or cause the Project to be
completed, by the Completion Date.
E. If the Public Entity fails to provide and expend the full amount of the matching
funds, if any, required under Section 7.23 for the Project.
F. If the Public Entity fails to record the Declaration and deliver copies thereof as
set forth in Section 2.05.W.
Notwithstanding the foregoing, any of the above delineated events that cannot be cured shall,
unless waived in writing by the State Entity and the Commissioner of MMB, constitute an Event
of Default under this Agreement immediately upon either the State Entity or the Commissioner of
MMB giving the Public Entity written notice of such event.
Section 2.08 Remedies. Upon the occurrence of an Event of Default and at any time
thereafter until such Event of Default is cured to the satisfaction of the State Entity, the State Entity
or the Commissioner of MMB may enforce any or all of the following remedies.
A. The State Entity may refrain from disbursing the Program Grant; provided,
however, the State Entity may make such disbursements after the occurrence of an Event of
Default without thereby waiving its rights and remedies hereunder.
B. If the Event of Default involves a failure to comply with any of the provisions
contained herein other than the provisions contained in Sections 4.01 or 4.02, then the
Commissioner of MMB, as a third party beneficiary of this Agreement, may demand that the
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Outstanding Balance of the Program Grant be returned to it, and upon such demand the
Public Entity shall return such amount to the Commissioner of MMB.
C. If the Event of Default involves a failure to comply with the provisions contained
in Sections 4.01 or 4.02, then the Commissioner of MMB, as a third party beneficiary of this
Agreement, may demand that the Public Entity pay the amounts that would have been paid
if there had been full and complete compliance with such provisions, and upon such demand
the Public Entity shall pay such amount to the Commissioner of MMB.
D. Either the State Entity or the Commissioner of MMB, as a third party beneficiary
of this Agreement, may enforce any additional remedies they may have in law or equity.
The rights and remedies herein specified are cumulative and not exclusive of any rights or
remedies that the State Entity or the Commissioner of MMB would otherwise possess.
If the Public Entity does not repay the amounts required to be paid under this Section or
under any other provision contained in this Agreement within 30 days of demand by the
Commissioner of MMB, or any amount ordered by a court of competent jurisdiction within 30
days of entry of judgment against the Public Entity and in favor of the State Entity and/or the
Commissioner of MMB, then such amount may, unless precluded by law, be taken from or off-set
against any aids or other monies that the Public Entity is entitled to receive from the State of
Minnesota.
Section 2.09 Notification of Event of Default. The Public Entity shall furnish to the
State Entity and the Commissioner of MMB, as soon as possible and in any event within 7 days
after it has obtained knowledge of the occurrence of each Event of Default or each event which
with the giving of notice or lapse of time or both would constitute an Event of Default, a statement
setting forth details of each Event of Default or event which with the giving of notice or upon the
lapse of time or both would constitute an Event of Default and the action which the Public Entity
proposes to take with respect thereto.
Section 2.10 Survival of Event of Default. This Agreement shall survive any and all
Events of Default and remain in full force and effect even upon the payment of any amounts due
under this Agreement, and shall only terminate in accordance with the provisions contained in
Section 2.12 and at the end of its term in accordance with the provisions contained in Section 2.11.
Section 2.11 Term of Grant Agreement. This Agreement shall, unless earlier
terminated in accordance with any of the provisions contained herein, remain in full force and
effect for the time period starting on the effective date hereof and ending on the date that
corresponds to the date established by adding a time period equal to 125% of Useful Life of the
Real Property and, if applicable, Facility to the date on which the Real Property and, if applicable,
Facility is first used for the operation of the State Program after such effective date. If there are
no uncured Events of Default as of such date this Agreement shall terminate and no longer be of
any force or effect, and the Commissioner of MMB shall execute whatever documents are needed
to release the Real Property and, if applicable, Facility from the effect of this Agreement and the
Declaration.
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Section 2.12 Modification and/or Early Termination of Grant. If the Project is not
started on or before the date that is 5 years from the effective date of this Agreement or all of the
Program Grant has not been disbursed as of the date that is 4 years from the date on which the
Project is started, or such later dates to which the Public Entity and the State Entity may agree in
writing, then the State Entity’s obligation to fund the Program Grant shall terminate. In such
event, (i) if none of the Program Grant has been disbursed by such dates then the State Entity’s
obligation to fund any portion of the Program Grant shall terminate and this Agreement shall
terminate and no longer be of any force or effect, and (ii) if some but not all of the Program Grant
has been disbursed by such dates then the State Entity shall have no further obligation to provide
any additional funding for the Program Grant and this Agreement shall remain in full force and
effect but shall be modified and amended to reflect the amount of the Program Grant that was
actually disbursed as of such date. This provision shall not, in any way, affect the Public Entity’s
obligation to complete the Project by the Completion Date.
This Agreement shall also terminate and no longer be of any force or effect upon the Public
Entity’s sale of its ownership interest in the Real Property and, if applicable, Facility in accordance
with the provisions contained in Section 4.01 and transmittal of all or a portion of the proceeds of
such sale to the Commissioner of MMB in compliance with the provisions contained in Section
4.02, or upon the termination of Public Entity’s ownership interest in the Real Property and, if
applicable, Facility if such ownership interest is by way of an easement or under a
Real Property/Facility Lease. Upon such termination the State Entity shall execute, or have
executed, and deliver to the Public Entity such documents as are required to release the Public
Entity’s ownership interest in the Real Property and, if applicable, Facility, from the effect of this
Agreement and the Declaration.
Section. 2.13 Excess Funds. If the full amount of the Program Grant and any matching
funds referred to in Section 7.23 are not needed to complete the Project, then, unless language in
the State Program Enabling Legislation indicates otherwise, the Program Grant shall be reduced
by the amount not needed.
Article III
USE CONTRACTS
This Article III and its contents is only needed and only applies if the Public Entity enters into an
agreement with another party under which such other party will operate any portion of the Real
Property, and if applicable, Facility. For all other circumstances this Article III and its contents
are not needed and should be ignored and treated as if it were left blank, and any reference to this
Article III, its contents, and the term Use Contract in this Agreement shall be ignored and treated
as if the references did not exist.
Section 3.01 General Provisions. If the Public Entity has statutory authority to enter into
a Use Contract, then it may enter into Use Contracts for various portions of the Real Property and,
if applicable, Facility; provided that each and every Use Contract that the Public Entity enters into
must comply with the following requirements:
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A. The purpose for which it was entered into must be to operate the State Program
in the Real Property and, if applicable, Facility.
B. It must contain a provision setting forth the statutory authority under which the
Public Entity is entering into such contract, and must comply with the substantive and
procedural provisions of such statute.
C. It must contain a provision stating that it is being entered into in order for the
Counterparty to operate the State Program and must describe such program.
D. It must contain a provision that will provide for oversight by the Public Entity.
Such oversight may be accomplished by way of a provision that will require the Counterparty
to provide to the Public Entity: (i) an initial program evaluation report for the first fiscal year
that the Counterparty will operate the State Program, (ii) program budgets for each
succeeding fiscal year showing that forecast program revenues and additional revenues
available for the operation of the State Program (from all sources) by the Counterparty will
equal or exceed expenses for such operation for each succeeding fiscal year, and (iii) a
mechanism under which the Public Entity will annually determine that the Counterparty is
using the portion of the Real Property and, if ap plicable, Facility that is the subject of the
Use Contract to operate the State Program.
E. It must allow for termination by the Public Entity in the event of a default
thereunder by the Counterparty, or in the event that the State Program is terminated or
changed in a manner that precludes the operation of such program in the portion of the Real
Property and, if applicable, Facility that is the subject of the Use Contract.
F. It must terminate upon the termination of the statutory authority under which the
Public Entity is operating the State Program.
G. It must require the Counterparty to pay all costs of operation and maintenance of
that portion of the Real Property and, if applicable, Facility that is the subject of the Use
Contract, unless the Public Entity is authorized by law to pay such costs and agrees to pay
such costs.
H. If the Public Entity pays monies to a Counterparty under a Use Contract, such
Use Contract must meet the requirements of Rev. Proc. 97-13, 1997-1 CB 632, so that such
Use Contract does not result in “private business use” under Section 141(b) of the Code.
I. It must be approved, in writing, by the Commissioner of MMB, and any Use
Contract that is not approved, in writing, by the Commissioner of MMB shall be null and
void and of no force or effect.
J. It must contain a provision requiring that each and every party thereto shall, upon
direction by the Commissioner of MMB, take such actions and furnish such documents to
the Commissioner of MMB as the Commissioner of MMB determines to be necessary to
ensure that the interest to be paid on the G.O. Bonds is exempt from federal income taxation.
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K. It must contain a provision that prohibits the Counterparty from creating or
allowing, without the prior written consent of the State Entity and the Commissioner of
MMB, any voluntary lien or encumbrance or involuntary lien or encumbrance that can be
satisfied by the payment of monies and which is not being actively contested against the Real
Property or, if applicable, Facility, the Public Entity’s ownership interest in the Real Property
or, if applicable, Facility, or the Counterparty’s interest in the Use Contract, whether such
lien or encumbrance is superior or subordinate to the Declaration. Provided, however, the
State Entity and the Commissioner of MMB will consent, in writing, to any such lien or
encumbrance that secures the repayment of a loan the repayment of which will not impair or
burden the funds needed to operate the portion of the Real Property and, if applicable,
Facility that is the subject of the Use Contract in the manner specified in Section 2.04 and
for which the entire amount is used (i) to acquire additional real estate that is needed to so
operate the Real Property and, if applicable, Facility in accordance with the requirements
imposed under Section 2.04 and will be included in and as part of the Public Entity’s
ownership interest in the Real Property and, if applicable, Facility, and/or (ii) to pay for
capital improvements that are needed to so operate the Real Property and, if applicable,
Facility in accordance with the requirements imposed under Section 2.04.
L. If the amount of the Program Grant exceeds $200,000.00, then it must contain a
provision requiring the Counterparty to list any vacant or new positions it may have with
state workforce centers as required by Minn. Stat. § 116L.66, as it may be amended, modified
or replaced from time to time, for the term of the Use Contract.
M. It must contain a provision that clearly states that the Public Entity is not required
to renew the Use Contract beyond the original term thereof and that the Public Entity may,
at its sole option and discretion, allow the Use Contract to expire at the end of its original
term and thereafter directly operate the governmental program in the Real Property and, if
applicable, Facility or contract with some other entity to operate the governmental program
in the Real Property and, if applicable, Facility.
Section 3.02 Initial Term and Renewal. The initial term for a Use Contract may not
exceed the lesser of (i) 50% of the Useful Life of the Real Property and, if applicable, Facility for
the portion of the Real Property and, if applicable, Facility that is the subject of the Use Contract,
or (ii) the shortest term of the Public Entity’s ownership interest in the Real Property and, if
applicable, Facility.
A Use Contract may allow for renewals beyond its initial term on the conditions that (a) the
term of any renewal may not exceed the initial term, (b) the Public Entity must make a
determination that renewal will continue to carry out the State Program and that the Counterparty
is suited and able to perform the functions contained in Use Contract that is to be renewed, (c) the
Use Contract may not include any provisions that would require, either directly or indirectly, the
Public Entity to either make the determination referred to in this Section or to renew the Use
Contract with the Counterparty after the expiration of the initial term or any renewal term, and (d)
no such renewal may occur prior to the date that is 6 months prior to the date on which the Use
Contract is scheduled to terminate. Provided, however, notwithstanding anything to the contrary
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contained herein the Public Entity’s voluntary agreement to reimburse the Counterparty for any
investment that the Counterparty provided for the acquisition or betterment of the Real Property
and, if applicable, Facility that is the subject of the Use Contract if the Public Entity does not renew
a Use Contract if requested by the Counterparty is not deemed to be a provision that directly or
indirectly requires the Public Entity to renew such Use Contract.
Section 3.03 Reimbursement of Counterparty. A Use Contract may but need not
contain, at the sole option and discretion of the Public Entity, a provision that requires the Public
Entity to reimburse the Counterparty for any investment that the Counterparty provided for the
acquisition or betterment of the Real Property and, if applicable, Facility that is the subject of the
Use Contract if the Public Entity does not renew a Use Contract if requested by the Counterparty.
If agreed to by the Public Entity, such reimbursement shall be on terms and conditions agreed to
by the Public Entity and the Counterparty.
Section 3.04 Receipt of Monies Under a Use Contract. The Public Entity does not
anticipate the receipt of any funds under a Use Contract; provided, however, if the Public Entity
does receive any monies under a Use Contract in excess of the amount the Public Entity needs and
is authorized to use to pay the operating expenses of the portion of the Real Property and, if
applicable, Facility that is the subject of a Use Contract, and to pay the principal, interest,
redemption premiums, and other expenses on Approved Debt, then a portion of such excess monies
must be paid by the Public Entity to the Commissioner of MMB. The portion of such excess
monies that the Public Entity must and shall pay to the Commissioner of MMB shall be determined
by the Commissioner of MMB, and absent circumstances which would indicate otherwise such
portion shall be determined by multiplying such excess monies by a fraction the numerator of
which is the Program Grant and the denominator of which is sum of the Program Grant and the
Approved Debt.
Article IV
SALE
Section 4.01 Sale. The Public Entity shall not sell any part of its ownership interest in the
Real Property and, if applicable, Facility unless all of the following provisions have been complied
with fully.
A. The Public Entity determines, by official action, that such ownership interest is
no longer usable or needed for the operation of the State Program, which such determination
may be based on a determination that the portion of the Real Property or, if appli cable,
Facility to which such ownership interest applies is no longer suitable or financially feasible
for such purpose.
B. The sale is made as authorized by law.
C. The sale is for Fair Market Value.
D. The written consent of the Commissioner of MMB has been obtained.
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The acquisition of the Public Entity’s ownership interest in the Real Property and, if
applicable, Facility at a foreclosure sale, by acceptance of a deed -in-lieu of foreclosure, or
enforcement of a security interest in personal property used in the operation thereof, by a
lender that has provided monies for the acquisition of the Public Entity’s ownership interest
in or betterment of the Real Property and, if applicable, Facility shall not be considered a sale
for the purposes of this Agreement if after such acquisition the lender operates such portion
of the Real Property and, if applicable, Facility in a manner which is not inconsistent with
the requirements imposed under Section 2.04 and the lender uses its best efforts to sell such
acquired interest to a third party for Fair Market Value. The lender’s ultimate sale or
disposition of the acquired interest in the Real Property and, if applicable, Facility shall be
deemed to be a sale for the purposes of this Agreement, and the proceeds thereof shall be
disbursed in accordance with the provisions contained in Section 4.02.
The Public Entity may participate in any public auction of its ownership interest in the Real
Property and, if applicable, Facility and bid thereon; provided that the Public Entity agrees that if
it is the successful purchaser it will not use any part of the Real Property or, if applicable, Facility
for the State Program.
Section 4.02 Proceeds of a Sale. Upon the sale of the Public Entity’s ownership interest
in the Real Property and, if applicable, Facility the proceeds thereof after the deduction of all costs
directly associated and incurred in conjunction with such sale and such other costs that are
approved, in writing by the Commissioner of MMB, but not including the repayment of any debt
associated with the Public Entity’s ownership interest in the Real Property and, if applicable,
Facility, shall be disbursed in the following manner and order.
A. The first distribution shall be to the Commissioner of MMB in an amount equal
to the Outstanding Balance of the Program Grant, and if the amount of such net proceeds
shall be less than the amount of the Outstanding Balance of the Program Grant then all of
such net proceeds shall be distributed to the Commissioner of MMB.
B. The remaining portion, after the distribution specified in Section 4.02.A, shall be
distributed to (i) pay in full any outstanding Approved Debt, (ii) reimburse the Public Entity
for its Ownership Value, and (iii) to pay interested public and private entities, other than any
such entity that has already received the full amount of its contribution (such as the State
Entity under Section 4.02.A and the holders of Approved Debt paid under this Section
4.02.B), the amount of money that such entity contributed to the Initial Acquisition and
Betterment Costs and the Subsequent Betterment Costs. If such remaining portion is not
sufficient to reimburse interested public and private entities for the full amount that such
entities contributed to the acquisition or betterment of the Real Property and, if applicable,
Facility, then the amount available shall be distributed as such entities may agree in writing,
and if such entities cannot agree by an appropriately issued court order.
C. The remaining portion, after the distributions specified in Sections 4.02.A and B,
shall be divided and distributed to the State Entity, the Public Entity, and any other public
and private entity that contributed funds to the Initial Acquisition and Betterment Costs and
the Subsequent Betterment Costs, other than lenders who supplied any of such funds, in
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proportion to the contributions that the State Entity, the Public Entity, and such other public
and private entities made to the acquisition and betterment of the Real Property and, if
applicable, Facility as such amounts are part of the Ownership Value, Initial Acquisition and
Betterment Costs, and Subsequent Betterment Costs.
The distribution to the State Entity shall be made to the Commissioner of MMB, and the
Public Entity may direct its distribution to be made to any other entity including, but not limited
to, a Counterparty.
All amounts to be disbursed under this Section 4.02 must be consented to, in writing, by the
Commissioner of MMB, and no such disbursements shall be made without such consent.
The Public Entity shall not be required to pay or reimburse the State Entity or the
Commissioner of MMB for any funds above and beyond the full net proceeds of such sale, even
if such net proceeds are less than the amount of the Outstanding Balance of the Program Grant.
Article V
COMPLIANCE WITH G.O. COMPLIANCE LEGISLATION
AND THE COMMISSIONER’S ORDER
Section 5.01 State Bond Financed Property. The Public Entity and the State Entity
acknowledge and agree that the Public Entity’s ownership interest in the Real Property and, if
applicable, Facility is, or when acquired by the Public Entity will be, “state bond financed
property”, as such term is used in the G.O. Compliance Legislation and the Commissioner’s Order,
and, therefore, the provisions contained in such statute and order apply, or will apply, to the Public
Entity’s ownership interest in the Real Property and, if applicable, Facility and any Use Contracts
relating thereto.
Section 5.02 Preservation of Tax Exempt Status. In order to preserve the tax-exempt
status of the G.O. Bonds, the Public Entity agrees as follows:
A. It will not use the Real Property or, if applicable, Facility, or use or invest the
Program Grant or any other sums treated as “bond proceeds” under Section 148 of the Code
including “investment proceeds,” “invested sinking funds,” and “replacement proceeds,” in
such a manner as to cause the G.O. Bonds to be classified as “arbitrage bonds” under Section
148 of the Code.
B. It will deposit into and hold all of the Program Grant that it receives under this
Agreement in a segregated non-interest bearing account until such funds are used for
payments for the Project in accordance with the provisions contained herein.
C. It will, upon written request, provide the Commissioner of MMB all information
required to satisfy the informational requirements set forth in the Code including, but not
limited to, Sections 103 and 148 thereof, with respect to the GO Bonds.
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D. It will, upon the occurrence of any act or omission by the Public Entity or any
Counterparty that could cause the interest on the GO Bonds to no longer be tax exempt and
upon direction from the Commissioner of MMB, take such actions and furnish such
documents as the Commissioner of MMB determines to be necessary to ensure that the
interest to be paid on the G.O. Bonds is exempt from federal taxation, which such action may
include either: (i) compliance with proceedings intended to classify the G.O. Bonds as a
“qualified bond” within the meaning of Section 141(e) of the Code, (ii) changing the nature
or terms of the Use Contract so that it complies with Revenue Procedure 97-13, 1997-1 CB
632, or (iii) changing the nature of the use of the Real Property or, if applicable, Facility so
that none of the net proceeds of the G.O. Bonds will be used, directly or indirectly, in an
“unrelated trade or business” or for any “private business use” (within the meaning of
Sections 141(b) and 145(a) of the Code), or (iv) compliance with other Code provisions,
regulations, or revenue procedures which amend or supersede the foregoing.
E. It will not otherwise use any of the Program Grant, including earnings thereon, if
any, or take or permit to or cause to be taken any action that would adversely affect the
exemption from federal income taxation of the interest on the G.O. Bonds, nor omit to take
any action necessary to maintain such tax exempt status, and if it should take, permit, omit
to take, or cause to be taken, as appropriate, any such action, it shall take all lawful actions
necessary to rescind or correct such actions or omissions promptly upon having knowledge
thereof..
Section 5.03 Changes to G.O. Compliance Legislation or the Commissioner’s Order.
In the event that the G.O. Compliance Legislation or the Commissioner’s Order is amended in a
manner that reduces any requirement imposed against the Public Entity, or if the Public Entity’s
ownership interest in the Real Property or, if applicable, Facility is exempt from the G.O.
Compliance Legislation and the Commissioner’s Order, then upon written request by the Public
Entity the State Entity shall enter into and execute an amendment to this Agreement to implement
herein such amendment to or exempt the Public Entity’s ownership interest in the Real Property
and, if applicable, Facility from the G.O. Compliance Legislation or the Commissioner’s Order.
Article VI
DISBURSEMENT OF GRANT PROCEEDS
Section 6.01 The Disbursements. The State Entity agrees, on the terms and subject to the
conditions set forth herein, to make Disbursements from the Program Grant to the Public Entity
from time to time in an aggregate total amount not to exceed the amount of the Program Grant. If
the amount of Program Grant that the State Entity cumulatively disburses hereunder to the Public
Entity is less than the amount of the Program Grant delineated in Section 1.01, then the State
Entity and the Public Entity shall enter into and execute whatever documents the State Entity
may request in order to amend or modify this Agreement to reduce the amount of the Program
Grant to the amount actually disbursed. Provided, however, in accordance with the provisions
contained in Section 2.11, the State Entity’s obligation to make Disbursements shall terminate as
of the dates specified in such Section even if the entire Program Grant has not been disbursed by
such dates.
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Disbursements shall only be for expenses that (i) are for those items of a capital nature for
the Project, (ii) accrued no earlier than the effective date of the legislation that appropriated the
funds that are used to fund the Program Grant, or (iii) have otherwise been consented to, in
writing, by the State Entity and the Commissioner of MMB.
It is the intent of the parties hereto that the rate of Disbursements shall not exceed the rate of
completion of the Project or the rate of disbursement of the matching funds required, if any,
under Section 7.23. Therefore, the cumulative amount of all Disbursements by the State Entity at
any point in time shall not exceed the portion of the Project that has been completed and the
percentage of the matching funds required, if any, under Section 7.23 that have been disbursed as
of such point in time. This requirement is expressed by way of the following two formulas:
Formula #1
Cumulative Disbursements < (Program Grant) × (percentage of matching funds, if any,
required under Section 7.23 that have been disbursed)
Formula #2
Cumulative Disbursements < (Program Grant) × (percentage of Project completed)
Section 6.02 Draw Requisitions. Whenever the Public Entity desires a disbursement of
a portion of the Program Grant, which shall be no more often than twice each calendar month, the
Public Entity shall submit to the State Entity a Draw Requisition duly executed on behalf of the
Public Entity or its designee. Each Draw Requisition must be submitted at least 7 calendar days
before the date the Disbursement is desired. Each Draw Requisition with respect to construction
items shall be limited to amounts equal to: (i) the total value of the classes of the work by
percentage of completion as approved by the Public Entity and the State Entity, plus (ii) the value
of materials and equipment not incorporated in the Project but delivered and suitably stored on or
off the Real Property in a manner acceptable to the State Entity, less (iii) any applicable retainage,
and less (iv) all prior Disbursements.
Notwithstanding anything herein to the contrary, no Disbursements for materials stored on
or off the Real Property will be made by the State Entity unless the Public Entity shall advise the
State Entity, in writing, of its intention to so store materials prior to their delivery and the State
Entity has not objected thereto.
At the time of submission of each Draw Requisition, other than the final Draw Requisition,
the Public Entity shall submit to the State Entity such supporting evidence as may be requested by
the State Entity to substantiate all payments which are to be made out of the relevant Draw
Requisition or to substantiate all payments then made with respect to the Project.
At the time of submission of the final Draw Requisition which shall not be submitted before
completion of the Project, including all landscape requirements and off-site utilities and streets
needed for access to the Real Property and, if applicable, Facility and correction of material defects
in workmanship or materials (other than the completion of punch list items) as provided in the
Construction Contract Documents, the Public Entity shall submit to the State Entity : (i) such
supporting evidence as may be requested by the State Entity to substantiate all payments which
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are to be made out of the final Draw Requisition or to substantiate all payments then made with
respect to the Project, and (ii) satisfactory evidence that all work requiring inspection by municipal
or other governmental authorities having jurisdiction has been duly inspected and approved by
such authorities, and that all requisite certificates of occupancy and other approvals have been
issued. The State Entity will withhold ten percent of grant funds until reporting requirements
outlined in 7.04 and 7.31 are met.
If on the date a Disbursement is desired the Public Entity has complied with all requirements
of this Agreement and the State Entity approves the relevant Draw Requisition and receives a
current construction report from the Inspecting Engineer recommending payment, then the State
Entity shall disburse the amount of the requested Disbursement to the Public Entity.
Section 6.03 Additional Funds. If the State Entity shall at any time in good faith
determine that the sum of the undisbursed amount of the Program Grant plus the amount of all
other funds committed to the Project is less than the amount required to pay all costs and expenses
of any kind which reasonably may be anticipated in connection with the Project, then the State
Entity may send written notice thereof to the Public Entity specifying the amount which must be
supplied in order to provide sufficient funds to complete the Project. The Public Entity agrees that
it will, within 10 calendar days of receipt of any such notice, supply or have some other entity
supply the amount of funds specified in the State Entity's notice.
Section 6.04 Conditions Precedent to Any Disbursement. The obligation of the State
Entity to make any Disbursement hereunder (including the initial Disbursement) shall be subject
to the following conditions precedent:
A. The State Entity shall have received a Draw Requisition for such Disbursement
specifying the amount of funds being requested, which such amount when added to all prior
requests for a Disbursement shall not exceed the amount of the Program Grant delineated in
Section 1.01.
B. The State Entity shall have either received a duly executed Declaration that has
been duly recorded in the appropriate governmental office, with all of the recording
information displayed thereon, or evidence that such Declaration will promptly be recorded
and delivered to the State Entity.
C. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that (i) the Public Entity has legal authority to and has taken all actions
necessary to enter into this Agreement and the Declaration, and (ii) this Agreement and the
Declaration are binding on and enforceable against the Public Entity.
D. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that the Public Entity has sufficient funds to fully and completely pay for
the Project and all other expenses that may occur in conjunction therewith.
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E. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that the Public Entity is in compliance with the matching funds
requirements, if any, contained in Section 7.23.
F. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, showing that the Public Entity possesses the ownership interest delineated
in Section 2.02.
G. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that the Real Property and, if applicable, Facility, and the contemplated
use thereof are permitted by and will comply with all applicable use or other restrictions and
requirements imposed by applicable zoning ordinances or regulations, and, if required by
law, have been duly approved by the applicable municipal or governmental authorities
having jurisdiction thereover.
H. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that that all applicable and required building permits, other permits, bonds
and licenses necessary for the Project have been paid for, issued, and obtained, other than
those permits, bonds and licenses which may not lawfully be obtained until a future date or
those permits, bonds and licenses which in the ordinary course of business would normally
not be obtained until a later date.
I. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that that all applicable and required permits, bonds and licenses necessary
for the operation of the Real Property and, if applicable, Facility in the manner specified in
Section 2.04 have been paid for, issued, and obtained, other than those permits, bonds and
licenses which may not lawfully be obtained until a future date or those permits, bonds and
licenses which in the ordinary course of business would normally not be obtained until a
later date.
J. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that the Project will be completed in a manner that will allow the Real
Property and, if applicable, Facility to be operated in the manner specified in Section 2.04.
K. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that the Public Entity has the ability and a plan to fund the operation of
the Real Property and, if applicable, Facility in the manner specified in Section 2.04.
L. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that the insurance requirements under Section 7.01 have been satisfied.
M. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, of compliance with the provisions and requirements specified in Section
7.10 and all additional applicable provisions and requirements, if any, contained in Minn.
Stat. § 16B.335, as it may be amended, modified or replaced from time to time. Such
evidence shall include, but not be limited to, evidence that: (i) the predesign package referred
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to in Section 7.10.B has, if required, been reviewed by and received a favorable
recommendation from the Commissioner of Administration for the State of Minnesota, (ii)
the program plan and cost estimates referred to in Section 7.10.C have, if required, received
a recommendation by the Chairs of the Minnesota State Senate Finance Committee and
Minnesota House of Representatives Ways and Means Committee, and (iii) the Chair and
Ranking Minority Member of the Minnesota House of Representatives Capital Investment
Committee and the Chair and Ranking Minority Member of the Minnesota Senate Capital
Investment Committee have, if required, been notified pursuant to Section 7.10.G.
N. No Event of Default under this Agreement or event which would constitute an
Event of Default but for the requirement that notice be given or that a period of grace or time
elapse shall have occurred and be continuing.
O. The State Entity shall have received evidence, in form and substance acceptable
to the State Entity, that the Contractor will complete the Construction Items substantially in
conformance with the Construction Contract Documents and pay all amounts lawfully owing
to all laborers and materialmen who worked on the Construction Items or supplied materials
therefor, other than amounts being contested in good faith. Such evidence may be in the
form of payment and performance bonds in amounts equal to or greater than the amount of
the fixed price or guaranteed maximum price contained in the Construction Contract
Documents that name the State Entity and the Public Entity dual obligees thereunder, or such
other evidence as may be acceptable to the Public Entity and the State Entity.
P. No determination shall have been made by the State Entity that the amount of
funds committed to the Project is less than the amount required to pay all costs and expenses
of any kind that may reasonably be anticipated in connection with the Project, or if such a
determination has been made and notice thereof sent to the Public Entity under Section 6.03,
then the Public Entity has supplied, or has caused some other entity to supply, the necessary
funds in accordance with such section or has provided evidence acceptable to the State Entity
that sufficient funds are available.
Q. The Public Entity has supplied to the State Entity all other items that the State
Entity may reasonably require.
Section 6.05 Construction Inspections. The Public Entity and the Architect, if any, shall
be responsible for making their own inspections and observations of the Construction Items, and
shall determine to their own satisfaction that the work done or materials supplied by the
Contractors to whom payment is to be made out of each Disbursement has been properly done or
supplied in accordance with the Construction Contract Documents. If any work done or materials
supplied by a Contractor are not satisfactory to the Public Entity or the Architect, if any, or if a
Contractor is not in material compliance with the Construction Contract Documents in any respect,
then the Public Entity shall immediately notify the State Entity, in writing. The State Entity and
the Inspecting Engineer, if any, may conduct such inspections of the Construction Items as either
may deem necessary for the protection of the State Entity's interest, and that any inspections which
may be made of the Project by the State Entity or the Inspecting Engineer, if any, are made and all
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certificates issued by the Inspecting Engineer, if any, will be issued solely for the benefit and
protection of the State Entity, and the Public Entity will not rely thereon.
Article VII
MISCELLANEOUS
Section 7.01 Insurance. The Public Entity shall, upon acquisition of the ownership
interest delineated in Section 2.02, insure the Facility, if such exists, in an amount equal to the full
insurable value thereof (i) by self insuring under a program of self insurance legally adopted,
maintained and adequately funded by the Public Entity, or (ii) by way of builders risk insurance
and fire and extended coverage insurance with a deductible in an amount acceptable to the State
Entity under which the State Entity and the Public Entity are named as loss payees. If damages
which are covered by such required insurance occur, then the Public Entity shall, at its sole option
and discretion, either: (y) use or cause the insurance proceeds to be used to fully or partially repair
such damage and to provide or cause to be provided whatever additional funds that may be needed
to fully or partially repair such damage, or (z) sell its ownership interest in the damaged Facility
and portion of the Real Property associated therewith in accordance with the provisions contained
in Section 4.01.
If the Public Entity elects to only partially repair such damage, then the portion of the
insurance proceeds not used for such repair shall be applied in accordance with the provisions
contained in Section 4.02 as if the Public Entity’s ownership interest in the Real Property and
Facility had been sold, and such amounts shall be credited against the amounts due and owing
under Section 4.02 upon the ultimate sale of the Public Entity’s ownership interest in the Real
Property and Facility. If the Public Entity elects to sell its ownership interest in the damaged
Facility and portion of the Real Property associated therewith, then such sale must occur within a
reasonable time period from the date the damage occurred and the cumulative sum of the insurance
proceeds plus the proceeds of such sale must be applied in accordance with the provisions
contained in Section 4.02, with the insurance proceeds being so applied within a reasonable time
period from the date they are received by the Public Entity.
The State Entity agrees to and will assign or pay over to the Public Entity all insurance
proceeds it receives so that the Public Entity can comply with the requirements that this Section
imposes thereon as to the use of such insurance proceeds.
If the Public Entity elects to maintain general comprehensive liability insurance regarding
the Real Property and, if applicable, Facility, then the Public Entity shall have the State Entity
named as an additional named insured therein.
The Public Entity may require a Counterparty to provide and maintain any or all of the
insurance required under this Section; provided that the Public Entity continues to be responsible
for the providing of such insurance in the event that the Counterparty fails to provide or maintain
such insurance.
At the written request of either the State Entity or the Commissioner of MMB, the Public
Entity shall promptly furnish to the requesting entity all written notices and all paid premium
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receipts received by the Public Entity regarding the required insurance, or certificates of insurance
evidencing the existence of such required insurance.
If the Public Entity fails to provide and maintain the insurance required under this Section,
then the State Entity may, at its sole option and discretion, obtain and maintain insurance of an
equivalent nature and any funds expended by the State Entity to obtain or maintain such insurance
shall be due and payable on demand by the State Entity and bear interest from the date of
disbursement by the State Entity at a rate equal to the lesser of the maximum interest rate allowed
by law or 18% per annum based upon a 365-day year. Provided, however, nothing contained
herein, including but not limited to this Section, shall require the State Entity to obtain or maintain
such insurance, and the State Entity’s decision to not obtain or maintain such insurance shall not
lessen the Public Entity’s duty to obtain and maintain such insurance.
Section 7.02 Condemnation. If after the Public Entity has acquired the ownership
interest delineated in Section 2.02 all or any portion of the Real Property and, if applicable, Facility
is condemned to an extent that the Public Entity can no longer comply with the provisions
contained in Section 2.04, then the Public Entity shall, at its sole option and discretion, either: (i)
use or cause the condemnation proceeds to be used to acquire an interest in additional real property
needed for the Public Entity to continue to comply with the provisions contained in Section 2.04
and, if applicable, to fully or partially restore the Facility and to provide or cause to be provided
whatever additional funds that may be needed for such purposes, or (ii) sell the remaining portion
of its ownership interest in the Real Property and, if applicable, Facility in accordance with the
provisions contained in Section 4.01. Any condemnation proceeds which are not used to acquire
an interest in additional real property or to restore, if applicable, the Facility shall be applied in
accordance with the provisions contained in Section 4.02 as if the Public Entity’s ownership
interest in the Real Property and, if applicable, Facility had been sold, and such amounts shall be
credited against the amounts due and owing under Section 4.02 upon the ultimate sale of the Public
Entity’s ownership interest in the remaining Real Property and, if applicable, Facility. If the Public
Entity elects to sell its ownership interest in the portion of the Real Property and, if applicable,
Facility that remains after the condemnation, then such sale must occur within a reasonable time
period from the date the condemnation occurred and the cumulative sum of the condemnation
proceeds plus the proceeds of such sale must be applied in accordance with the provisions
contained in Section 4.02, with the condemnation proceeds being so applied within a reasonable
time period from the date they are received by the Public Entity.
As recipient of any of condemnation awards or proceeds referred to herein, the State Entity
agrees to and will disclaim, assign or pay over to the Public Entity all of such condemnation awards
or proceeds it receives so that the Public Entity can comply with the requirements that this Section
imposes upon the Public Entity as to the use of such condemnation awards or proceeds.
Section 7.03 Use, Maintenance, Repair and Alterations. The Public Entity shall (i)
keep the Real Property and, if applicable, Facility, in good condition and repair, subject to
reasonable and ordinary wear and tear, (ii) complete promptly and in good and workmanlike
manner any building or other improvement which may be constructed on the Real Property and
promptly restore in like manner any portion of the Facility, if applicable, which may be damaged
or destroyed thereon and pay when due all claims for labor performed and materials furnished
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therefor, (iii) comply with all laws, ordinances, regulations, requirements, covenants, conditions
and restrictions now or hereafter affecting the Real Property or, if applicable, Facility, or any part
thereof, or requiring any alterations or improvements thereto, (iv) keep and maintain abutting
grounds, sidewalks, roads, parking and landscape areas in good and neat order and repair, (v)
comply with the provisions of any Real Property/Facility Lease if the Public Entity’s ownership
interest in the Real Property and, if applicable, Facility, is a leasehold interest, (vi) comply with
the provisions of any easement if its ownership interest in the Real Property and, if applicable,
Facility is by way of such easement, and (vii) comply with the provisions of any condominium
documents and any applicable reciprocal easement or operating agreements if the Real Property
and, if applicable, Facility, is part of a condominium regime or is subject to a reciprocal easement
or use contract.
The Public Entity shall not, without the written consent of the State Entity and the
Commissioner of MMB, (a) permit or suffer the use of any of the Real Property or, if applicable,
Facility, for any purpose other than the purposes specified in Section 2.04, (b) remove, demolish
or substantially alter any of the Real Property or, if applicable, Facility, except such alterations as
may be required by laws, ordinances or regulations or such other alterations as may improve such
Real Property or, if applicable, Facility by increasing the value thereof or improving its ability to
be used to operate the State Program thereon or therein, (c) do any act or thing which would unduly
impair or depreciate the value of the Real Property or, if applicable, Facility, (d) abandon the Real
Property or, if applicable, Facility, (e) commit or permit any waste or deterioration of the Real
Property or, if applicable, Facility, (f) remove any fixtures or personal property from the Real
Property or, if applicable, Facility, that was paid for with the proceeds of the Program Grant unless
the same are immediately replaced with like property of at least equal value and utility, or (g)
commit, suffer or permit any act to be done in or upon the Real Property or, if applicable, Facility,
in violation of any law, ordinance or regulation.
If the Public Entity fails to maintain the Real Property and, if applicable, Facility in
accordance with the provisions contained in this Section, then the State Entity may perform
whatever acts and expend whatever funds that are necessary to so maintain the Real Property and,
if applicable, Facility and the Public Entity irrevocably authorizes and empowers the State Entity
to enter upon the Real Property and, if applicable, Facility, to perform such acts as may to
necessary to so maintain the Real Property and, if applicable, Facility. Any actions taken or funds
expended by the State Entity hereunder shall be at its sole option and discretion, and nothing
contained herein, including but not limited to this Section, shall require the State Entity to take any
action, incur any expense, or expend any funds, and the State Entity shall not be responsible for or
liable to the Public Entity or any other entity for any such acts that are undertaken and performed
in good faith and not in a negligent manner. Any funds expended by the State Entity to perform
such acts as may to necessary to so maintain the Real Property and, if applicable, Facility shall be
due and payable on demand by the State Entity and bear interest from the date of disbursement by
the State Entity at a rate equal to the lesser of the maximum interest rate allowed by law or 18%
per annum based upon a 365 day year.
Section 7.04 Record Keeping and Reporting. The Public Entity shall maintain or cause
to be maintained books, records, documents and other evidence pertaining to the costs or expenses
associated with the Project and operation of the Real Property and, if applicable, Facility needed
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to comply with the requirements contained in this Agreement, the G.O. Compliance Legislation,
the Commissioner’s Order, and the State Program Enabling Legislation, and upon request shall
allow or cause the entity which is maintaining such items to allow the State Entity, auditors for the
State Entity, the Legislative Auditor for the State of Minnesota, or the State Auditor for the State
of Minnesota, to inspect, audit, copy, or abstract, all of such items. The Public Entity shall use or
cause the entity which is maintaining such items to use generally accepted accounting principles
in the maintenance of such items, and shall retain or cause to be retained (i) all of such items that
relate to the Project for a period of 6 years from the date that the Project is fully completed and
placed into operation, and (ii) all of such items that relate to the operation of the Real Property
and, if applicable, Facility for a period of 6 years from the date such operation is initiated.
The Public Entity agrees to submit annual progress reports to the State Entity while the grant
remains open. The reports will be submitted on forms provided by the Public Entity. A final
report will be submitted upon project completion and ten percent of grant funds will be withheld
until a complete final report is submitted. Additionally, reports regarding expected job creation
will be submitted for 60 months after grant completion, or until the expected jobs presented in the
application are met.
Section 7.05 Inspections by State Entity. Upon reasonable request by the State Entity
and without interfering with the normal use of the Real Property and, if applicable, Facility, the
Public Entity shall allow, and will require any entity to whom it leases, subleases, or enters into a
Use Contract for any portion of the Real Property and, if applicable, Facility to allow the State
Entity to inspect the Real Property and, if applicable, Facility.
Section 7.06 Data Practices. The Public Entity agrees with respect to any data that it
possesses regarding the Program Grant, the Project, or the operation of the Real Property and, if
applicable, Facility, to comply with all of the provisions and restrictions contained in the
Minnesota Government Data Practices Act contained in Chapter 13 of the Minnesota Statutes that
exists as of the date of this Agreement and as such may subsequently be amended, modified or
replaced from time to time.
Section 7.07 Non-Discrimination. The Public Entity agrees to not engage in
discriminatory employment practices regarding the Project, or operation or management of the
Real Property and, if applicable, Facility, and it shall, with respect to such activities, fully comply
with all of the provisions contained in Chapters 363A and 181 of the Minnesota Statutes that exist
as of the date of this Agreement and as such may subsequently be amended, modified or replaced
from time to time.
Section 7.08 Workers’ Compensation. The Public Entity agrees to comply with all of
the provisions relating to worker’s compensation contained in Minn. Stat. §§ 176.181, subd. 2 and
176.182, as they may be amended, modified or replaced from time to time, with respect to the
Project and the operation or management of the Real Property and, if applicable, Facility.
Section 7.09 Antitrust Claims. The Public Entity hereby assigns to the State Entity and
the Commissioner of MMB all claims it may have for overcharges as to goods or services provided
with respect to the Project, and operation or management of the Real Property and, if applicable,
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Facility that arise under the antitrust laws of the State of Minnesota or of the United States of
America.
Section 7.10 Review of Plans and Cost Estimates. The Public Entity agrees to comply
with all applicable provisions and requirements, if any, contained in Minn. Stat. § 16B.335, as it
may be amended, modified or replaced from time to time, for the Project, and in accordance
therewith the Public Entity agrees to comply with the following provisions and requirements if
such provisions and requirements are applicable.
A. The Public Entity shall provide all information that the State Entity may request
in order for the State Entity to determine that the Project will comply with the provisions and
requirements contained in Minn. Stat. § 16B.335, as it may be amended, modified or replaced
from time to time.
B. Prior to its proceeding with design activities for the Project the Public Entity shall
prepare a predesign package and submit it to the Commissioner of Administration for the
State of Minnesota for review and comment. The predesign package must be sufficient to
define the purpose, scope, cost, and projected schedule for the Project, and must demonstrate
that the Project has been analyzed according to appropriate space and needs standards. Any
substantial changes to such predesign package must be submitted to the Commissioner of
Administration for the State of Minnesota for review and comment.
C. If the Project includes the construction of a new building, substantial addition to
an existing building, a substantial change to the interior configuration of an existing building,
or the acquisition of an interest in land, then the Public Entity shall not prepare final plans
and specifications until it has prepared a program plan and cost estimates for all elements
necessary to complete the Project and presented them to the Chairs of the Minnesota State
Senate Finance Committee and Minnesota House of Representatives Ways and Means
Committee and the chairs have made their recommendations, and it has notified the Chair
and Ranking Minority Member of the Minnesota House of Representatives Capital
Investment Committee and the Chair and Ranking Minority Member of the Minnesota State
Senate Capital Investment Committee. The program plan and cost estimates must note any
significant changes in the work to be performed on the Project, or in its costs, which have
arisen since the appropriation from the legislature for the Project was enacted or which differ
from any previous predesign submittal.
D. The Public Entity must notify the Chairs and Ranking Minority Members of the
Minnesota State Senate Finance and Capital Investment Committees, and the Minnesota
House of Representatives Capital Investment and Ways and Means Committees of any
significant changes to the program plan and cost estimates referred to in Section 7.10.C.
E. The program plan and cost estimates referred to in Section 7.10.C must ensure
that the Project will comply with all applicable energy conservation standards contained in
law, including Minn. Stat. §§ 216C.19 to 216C.20, as they may be amended, modified or
replaced from time to time, and all rules adopted thereunder.
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F. If any of the Program Grant is to be used for the construction or remodeling of
the Facility, then both the predesign package referred to in Section 7.10.B and the program
plan and cost estimates referred to in Section 7.10.C must include provisions for cost-
effective information technology investments that will enable the occupant of the Facility to
reduce its need for office space, provide more of its services electronically, and decentralize
its operations.
G. If the Project does not involve the construction of a new building, substantial
addition to an existing building, substantial change to the interior configuration of an existing
building, or the acquisition of an interest in land, then prior to beginning work on the Project
the Public Entity shall just notify the Chairs and Ranking Minority Members of the
Minnesota State Senate Finance and Capital Investment Committees, and the Minnesota
House of Representatives Capital Investment and Ways and Means Committees that the work
to be performed is ready to begin.
H. The Project must be: (i) substantially completed in accordance with the program
plan and cost estimates referred to in Section 7.10.C, (ii) completed in accordance with the
time schedule contained in the program plan referred to in Section 7.10.C, and (iii) completed
within the budgets contained in the cost estimates referred to in Section 7.10.C.
Provided, however, the provisions and requirements contained in this Section only apply to
public lands or buildings or other public improvements of a capital nature, and shall not apply to
the demolition or decommissioning of State assets, hazardous material projects, utility
infrastructure projects, environmental testing, parking lots, parking structures, park and ride
facilities, bus rapid transit stations, light rail lines, passenger rail projects, exterior lighting,
fencing, highway rest areas, truck stations, storage facilities not consisting primarily of offices or
heated work areas, roads, bridges, trails, pathways, campgrounds, athletic fields, dams, floodwater
retention systems, water access sites, harbors, sewer separation projects, water and wastewater
facilities, port development projects for which the Commissioner of Transportation for the State
of Minnesota has entered into an assistance agreement under Minn. Stat. § 457A.04, as it may be
amended, modified or replaced from time to time, ice centers, local government projects with a
construction cost of less than $1,500,000.00, or any other capital project with a construction cost
of less than $750,000.00.
Section 7.11 Prevailing Wages. The Public Entity agrees to comply with all of the
applicable provisions contained in Chapter 177 of the Minnesota Statutes, and specifically those
provisions contained in Minn. Stat. §§ 177.41 through 177.435, as they may be amended, modified
or replaced from time to time with respect to the Project and the operation of the State Program on
or in the Real Property and, if applicable, Facility. By agreeing to this provision, the Public Entity
is not acknowledging or agreeing that the cited provisions apply to the Project or the operation of
the State Program on or in the Real Property and, if applicable, Facility.
Section 7.12 Liability. The Public Entity and the State Entity agree that they will, subject
to any indemnifications provided herein, be responsible for their own acts and the results thereof
to the extent authorized by law, and they shall not be responsible for the acts of the other party and
the results thereof. The liability of the State Entity and the Commissioner of MMB is governed
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by the provisions contained in Minn. Stat. § 3.736, as it may be amended, modified or replaced
from time to time. If the Public Entity is a “municipality” as such term is used in Chapter 466 of
the Minnesota Statutes that exists as of the date of this Agreement and as such may subsequently
be amended, modified or replaced from time to time, then the liability of the Public Entity,
including but not limited to the indemnification provided under Section 7.13, is governed by the
provisions contained in such Chapter 466.
Section 7.13 Indemnification by the Public Entity. The Public Entity shall bear all loss,
expense (including attorneys’ fees), and damage in connection with the Project and operation of
the Real Property and, if applicable, Facility, and agrees to indemnify and hold harmless the State
Entity, the Commissioner of MMB, and the State of Minnesota, their agents, servants and
employees from all claims, demands and judgments made or recovered against the State Entity,
the Commissioner of MMB, and the State of Minnesota, their agents, servants and employees,
because of bodily injuries, including death at any time resulting therefrom, or because of damages
to property of the State Entity, the Commissioner of MMB, or the State of Minnesota, or others
(including loss of use) from any cause whatsoever, arising out of, incidental to, or in connection
with the Project or operation of the Real Property and, if applicable, Facility, whether or not due
to any act of omission or commission, including negligence of the Public Entity or any contractor
or his or their employees, servants or agents, and whether or not due to any act of omission or
commission (excluding, however, negligence or breach of statutory duty) of the State Entity, the
Commissioner of MMB, or the State of Minnesota, their employees, servants or agents.
The Public Entity further agrees to indemnify, save, and hold the State Entity, the
Commissioner of MMB, and the State of Minnesota, their agents and employees, harmless from
all claims arising out of, resulting from, or in any manner attributable to any violation by the Public
Entity, its officers, employees, or agents, or by any Counterparty, its officers, employees, or
agents, of any provision of the Minnesota Government Data Practices Act, including legal fees
and disbursements paid or incurred to enforce the provisions contained in Section 7.06.
The Public Entity’s liability hereunder shall not be limited to the extent of insurance carried
by or provided by the Public Entity, or subject to any exclusions from coverage in any insurance
policy.
Section 7.14 Relationship of the Parties. Nothing contained in this Agreement is
intended or should be construed in any manner as creating or establishing the relationship of co-
partners or a joint venture between the Public Entity, the State Entity, or the Commissioner of
MMB, nor shall the Public Entity be considered or deemed to be an agent, representative, or
employee of the State Entity, the Commissioner of MMB, or the State of Minnesota in the
performance of this Agreement, the Project, or operation of the Real Property and, if applicable,
Facility.
The Public Entity represents that it has already or will secure or cause to be secured all
personnel required for the performance of this Agreement and the Project, and the operation and
maintenance of the Real Property and, if applicable, Facility. All personnel of the Public Entity
or other persons while engaging in the performance of this Agreement, the Project, or the operation
and maintenance of the Real Property and, if applicable, Facility shall not have any contractual
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relationship with the State Entity, the Commissioner of MMB, or the State of Minnesota, and shall
not be considered employees of any of such entities. In addition, all claims that may arise on
behalf of said personnel or other persons out of employment or alleged employment including, but
not limited to, claims under the Workers’ Compensation Act of the State of Minnesota, claims of
discrimination against the Public Entity, its officers, agents, contractors, or employees shall in no
way be the responsibility of the State Entity, the Commissioner of MMB, or the State of Minnesota.
Such personnel or other persons shall not require nor be entitled to any compensation, rights or
benefits of any kind whatsoever from the State Entity, the Commissioner of MMB, or the State of
Minnesota including, but not limited to, tenure rights, medical and hospital care, sick and vacation
leave, disability benefits, severance pay and retirement benefits.
Section 7.15 Notices. In addition to any notice required under applicable law to be given
in another manner, any notices required hereunder must be in writing and shall be sufficient if
personally served or sent by prepaid, registered, or certified mail (return receipt requested), to the
business address of the party to whom it is directed. Such business address shall be that address
specified below or such different address as may hereafter be specified, by either party by written
notice to the other:
To the Public Entity at:
City of Elk River
17619 Tyler Street NW
Elk River, MN 55330
Attention: City Clerk
To the State Entity at:
Great Northern Building
12th Floor
180 East Fifth Street
St. Paul, MN 55101-1678
Attention: Jeremy LaCroix, or Successor
To the Commissioner of MMB at:
Minnesota Department of Management and Budget
400 Centennial Office Bldg.
658 Cedar St.
St. Paul, MN 55155
Attention: Commissioner
Section 7.16 Binding Effect and Assignment or Modification. This Agreement and the
Declaration shall be binding upon and inure to the benefit of the Public Entity and the State Entity,
and their respective successors and assigns. Provided, however, that neither the Public Entity nor
the State Entity may assign any of its rights or obligations under this Agreement or the Declaration
without the prior written consent of the other party. No change or modification of the terms or
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provisions of this Agreement or the Declaration shall be binding on either the Public Entity or the
State Entity unless such change or modification is in writing and signed by an authorized official
of the party against which such change or modification is to be imposed.
Section 7.17 Waiver. Neither the failure by the Public Entity, the State Entity, or the
Commissioner of MMB, as a third party beneficiary of this Agreement, in any one or more
instances to insist upon the complete and total observance or performance of any term or provision
hereof, nor the failure of the Public Entity, the State Entity, or the Commissioner of MMB, as a
third party beneficiary of this Agreement, to exercise any right, privilege, or remedy conferred
hereunder or afforded by law shall be construed as waiving any breach of such term, provision, or
the right to exercise such right, privilege, or remedy thereafter. In addition, no delay on the part of
the Public Entity, the State Entity, or the Commissioner of MMB, as a third party beneficiary of
this Agreement, in exercising any right or remedy hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any right or remedy preclude other or further exercise thereof
or the exercise of any other right or remedy.
Section 7.18 Entire Agreement. This Agreement, the Declaration, and the documents, if
any, referred to and incorporated herein by reference embody the entire agreement between the
Public Entity and the State Entity, and there are no other agreements, either oral or written, between
the Public Entity and the State Entity on the subject matter hereof.
Section 7.19 Choice of Law and Venue. All matters relating to the validity, construction,
performance, or enforcement of this Agreement or the Declaration shall be determined in
accordance with the laws of the State of Minnesota. All legal actions initiated with respect to or
arising from any provision contained in this Agreement shall be initiated, filed and venued in the
State of Minnesota District Court located in the City of St. Paul, County of Ramsey, State of
Minnesota.
Section 7.20 Severability. If any provision of this Agreement is finally judged by any
court to be invalid, then the remaining provisions shall remain in full force and effect and they
shall be interpreted, performed, and enforced as if the invalid provision did not appear herein.
Section 7.21 Time of Essence. Time is of the essence with respect to all of the matters
contained in this Agreement.
Section 7.22 Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original, but such
counterparts shall together constitute one and the same instrument.
Section 7.23 Matching Funds. The Public Entity must obtain and supply the following
matching funds, if any, for the Project:
$92,000
Any matching funds which are intended to meet the above requirements must either be in the form
of (i) cash monies, (ii) legally binding commitments for money, or (iii) equivalent funds or
contributions, including equity, which have been or will be used to pay for the Project. The Public
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Entity shall supply to the Commissioner of MMB whatever documentation the Commissioner of
MMB may request to substantiate the availability and source of any matching funds, and the source
and terms relating to all matching funds must be consented to, in writing, by the Commissioner of
MMB.
Section 7.24 Source and Use of Funds. The Public Entity represents to the State Entity
and the Commissioner of MMB that Attachment III is intended to be and is a source and use of
funds statement showing the total cost of the Project and all of the funds that are available for the
completion of the Project, and that the information contained in such Attachment III correctly
and accurately delineates the following information.
A. The total cost of the Project detailing all of the major elements that make up such
total cost and how much of such total cost is attributed to each such major element.
B. The source of all funds needed to complete the Project broken down among the
following categories:
(i) State funds including the Program Grant, identifying the source and amount
of such funds.
(ii) Matching funds, identifying the source and amount of such funds.
(iii) Other funds supplied by the Public Entity, identifying the source and
amount of such funds.
(iv) Loans, identifying each such loan, the entity providing the loan, the amount
of each such loan, the terms and conditions of each such loan, and all
collateral pledged for repayment of each such loan.
(v) Other funds, identifying the source and amount of such funds.
C. Such other financial information that is needed to correctly reflect the total funds
available for the completion of the Project, the source of such funds and the expected use of
such funds.
Previously paid project expenses that are to be reimbursed and paid from proceeds of the
G.O. Grant may only be included as a source of funds and included in Attachment III if such
items have been approved, in writing, by the Commissioner of MMB.
If any of the funds included under the source of funds have conditions precedent to the release
of such funds, then the Public Entity must provide to the State Entity and the Commissioner of
MMB a detailed description of such conditions and what is being done to satisfy such conditions.
The Public Entity shall also supply whatever other information and documentation that the
State Entity or the Commissioner of MMB may request to support or explain any of the information
contained in Attachment III.
The value of the Public Entity’s ownership interest in the Real Property and, if applicable,
Facility should only be shown in Attachment III if such ownership interest is being acquired and
paid for with funds shown in such Attachment III, and for all other circumstances such value
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should be shown in the definition for Ownership Value in Section 1.01 and not included in such
Attachment III.
The funds shown in Attachment III and to be supplied for the Project may, subject to any
limitations contained in the State Program Enabling Legislation, be provided by either the Public
Entity or a Counterparty under a Use Contract.
Section 7.25 Project Completion Schedule. The Public Entity represents to the State
Entity and the Commissioner of MMB that Attachment IV correctly and accurately delineates the
projected schedule for the completion of the Project.
Section 7.26 Third-Party Beneficiary. The State Program will benefit the State of
Minnesota and the provisions and requirements contained herein are for the benefit of both the
State Entity and the State of Minnesota. Therefore, the State of Minnesota, by and through its
Commissioner of MMB, is and shall be a third-party beneficiary of this Agreement.
Section 7.27 Public Entity Tasks. Any tasks that this Agreement imposes upon the Public
Entity may be performed by such other entity as the Public Entity may select or designate, provided
that the failure of such other entity to perform said tasks shall be deemed to be a failure to perform
by the Public Entity.
Section 7.28 State Entity and Commissioner Required Acts and Approvals. The State
Entity and the Commissioner of MMB shall not (i) perform any act herein required or authorized
by it in an unreasonable manner, (ii) unreasonably refuse to perform any act that it is required to
perform hereunder, or (iii) unreasonably refuse to provide or withhold any approval that is required
of it herein.
Section 7.29 Applicability to Real Property and Facility. This Agreement applies to the
Public Entity’s ownership interest in the Real Property and if a Facility exists to the Facility. The
term “if applicable” appearing in conjunction with the term “Facility” is meant to indicate that this
Agreement will apply to a Facility if one exists, and if no Facility exists then this Agreement will
only apply to the Public Entity’s ownership interest in the Real Property.
Section7.30 E-Verification. The Public Entity agrees and acknowledges that it is aware
of Minn. Stat. § 16C.075 regarding e-verification of employment of all newly hired employees to
confirm that such employees are legally entitled to work in the United States, and that it will, if
and when applicable, fully comply with such statute and impose a similar requirement in any Use
Contract to which it is a party.
Section 7.31 Additional Requirements. The Public Entity and the State Entity agree to
comply with the following additional requirements. In the event of any conflict or inconsistency
between the following additional requirements and any other provisions or requirement contained
in this Agreement, the following additional requirements contained in this Section shall control.
The future use of the land in which the infrastructure serves must meet Minnesota
Statute 2017-116J.431.
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Eligible Businesses. Businesses must be engaged in manufacturing, technology,
warehousing and distribution, research and development, or agricultural processing in order to
locate to any business or industrial park assisted with funds from this Agreement.
Business Recruiting. If applicable, the grant recipient agrees to not recruit or target a
business currently located in another Minnesota community to relocate significant operations in
the expanded industrial or business park. Furthermore, before any business that is within 30 miles
of the expanded business park decides to relocate significant operations to the expanded business
park, evidence that the current, host community for that business agreed that the current
community could not accommodate the businesses’ needs shall be secured and provided to the
State. This provision shall apply for 24 months after the expanded business park is completed.
Conflict of Interest. The State will take steps to prevent individual and organizational
conflicts of interest in reference to Grantees per Minn.Stat.§16B.98 and Department of
Administration, Office of Grants Management, Policy Number 08-01 Conflict of Interest Policy
for State Grant-Making. When a conflict of interest concerning State grant-making is suspected,
disclosed, or discovered, transparency shall be the guiding principle in addressing it.
In cases where a potential or actual individual or organizational conflict of interest is
suspected, disclosed, or discovered by the Grantee throughout the life of the grant agreement,
they must immediately notify the State for appropriate action steps to be taken, as defined above.
The Grantee must complete a Conflict of Interest Disclosure agreement and attach it to their
proposal.
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IN TESTIMONY HEREOF, the Public Entity and the State Entity have executed this General Obligation
Bond Proceeds Grant Agreement Construction Grant for the CDI Elk River Expansion BDPI Project
under the Business Development Public Infrastructure Program on the day and date indicated immediately
below their respective signatures.
PUBLIC ENTITY:
City of Elk River ,
a Statutory City
By:
Its: Mayor
Dated: __________________, _____
And:
Its:
Dated: __________________, _____
STATE ENTITY:
Minnesota Department of Employment and Economic
Development
By: (WITH DELEGATED AUTHORITY)
Its: Deputy Commissioner
Dated: __________________, 20___
ENCUMBERED:
Department of Employment and Economic
Development
By: ________________________________
(Name)
____________________________________
Date Encumbered
[Individual signing certifies that funds have
been encumbered as required by Minnesota
Statute 16A.15]
07/06/2026 PR 103350 293304 3000650423
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CERTIFICATION PROVIDED IN LIEU OF DECLARATION
______________________________________________________________________________
Attachment I to Grant Agreement
State of Minnesota
Greater Minnesota Business Development Public Infrastructure Program
General Obligation Bond Financed
DECLARATION
The undersigned has the following interest in the real property located in the County of
Sherburne, State of Minnesota that is legally described in Exhibit A attached and all facilities
situated thereon (collectively referred to as the “Restricted Property”):
(Check the appropriate box.)
X a fee simple title,
a lease, or
an easement,
and as owner of such fee title, lease or easement, does hereby declare that such interest in the
Restricted Property is hereby made subject to the following restrictions and encumbrances:
A. The Restricted Property is bond financed property within the meaning of Minn. Stat. §
16A.695 that exists as of the effective date of the grant agreement identified in
paragraph B below, is subject to the encumbrance created and requirements imposed
by such statutory provision, and cannot be sold, mortgaged, encumbered or otherwise
disposed of without the approval of the Commissioner of Minnesota Management and
Budget, or its successor, which approval must be evidenced by a written statement
signed by said commissioner and attached to deed, mortgage, encumbrance or
instrument used to sell or otherwise dispose of the Restricted Property; and
B. The Restricted Property is subject to all of the terms, conditions, provisions, and
limitations contained in that certain CDI Elk River Expansion BDPI Project between
the City of Elk River and the Minnesota Department of Employment and Economic
Development (DEED), dated March 23, 2026 (the “G.O. Grant Agreement”).
The Restricted Property shall remain subject to this State of Minnesota General Obligation Bond
Financed Declaration for 125% of the useful life of the Restricted Property or until the Restricted
Property is sold with the written approval of the Commissioner of Minnesota Management and
Budget, at which time it shall be released therefrom by way of a written release in recordable form
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signed by both the Commissioner of Minnesota Department of Employment and Economic
Development and the Commissioner of Minnesota Management and Budget, and such written
release is recorded in the real estate records relating to the Restricted Property. This Declaration
may not be terminated, amended, or in any way modified without the specific written consent of
the Commissioner of Minnesota Management and Budget.
PUBLIC ENTITY:
City of Elk River,
a Statutory City
By: _______________________________
Its: _______________________________
Dated: ________________________, 2____
And: ______________________________
Its: ________________________________
Executed on the ___ day of ______________, 2____
STATE OF MINNESOTA )
) ss.
COUNTY OF )
This Department of Employment and Economic Development Declaration was executed and
acknowledged before me on the _____ day of _____________________, 2____, by
_________________________ the _________________, and __________________, the
________________________, of _____________________, a _______________________, on
behalf of said ______________________.
Notary Public
This Declaration was drafted by:
Office of Attorney General
Suite 300
400 Sibley Street
St. Paul, MN 55101-1996
Page 128 of 213
Generic GO Bond Proceeds 42 Ver – 8/9/22
Grant Agreement for Program Construction Grants
Exhibit A to Declaration
LEGAL DESCRIPTION OF RESTRICTED PROPERTY
Page 129 of 213
Generic GO Bond Proceeds 43 Ver – 8/9/22
Grant Agreement for Program Construction Grants
Attachment II to Grant Agreement
LEGAL DESCRIPTION OF REAL PROPERTY
Page 130 of 213
Generic GO Bond Proceeds 44 Ver – 8/9/22
Grant Agreement for Program Construction Grants
Attachment III to Grant Agreement
SOURCE AND USE OF FUNDS FOR THE PROJECT
Grant #BDPI-26-0001-O-FY26
Source of Funds Use of Funds
Identify Source of
Funds
Amount Identify Items Amount
State GO Funds Ownership Acquisition
BDPI/Program Grant $92,000 and Other Items Paid for
with Program Grant Funds
Other State Funds Purchase of Ownership $__________
Interest
____________ $__________ Other Items of a Capital
____________ $__________ Nature
Sub-Total $92,000 Stormwater Pipe,
Engineering
$92,000
Matching Funds
City of Elk River $92,000 Sub Total $92,000
____________ _________
Sub Total $92,000 Items Paid for with
Non- Program Grant Funds
Other Public Entity
Funds
Street, Engineering $144,000
City of Elk River $52,000
Sub-Total $52,000 Sub Total $144,000
Loans
____________ $__________
____________ $__________
Sub-Total $__________
Other Funds
$
____________ $__________
Sub-Total $__________
TOTAL FUNDS $236,000 TOTAL PROJECT COSTS $236,000
Page 131 of 213
Generic GO Bond Proceeds 45 Ver – 8/9/22
Grant Agreement for Program Construction Grants
Attachment IV to Grant Agreement
PROJECT COMPLETION SCHEDULE
Approved By City – May/June 2026
Project Specifications – May/June 2026
Out for Bid – June 2026
Bid Close – June/July 2026
Award Contract – June/July 2026
Project Construction Complete – August/September 2026
Page 132 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.9
Meeting Date
July 20, 2026
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Item Description
Fabulous Armadillos
Reviewed by
Jolene Richter
Katie Harstad
Jeff Shelby
Cal Portner
Justin Dunford
Action Requested
Approve, by motion, The Furniture & Things Community Event Center's Overlook Catering for The Fabulous
Armadillos concert as part of the city's Summer Concert Series on August 6, 2026, at Riverside Park from 6
to 9 p.m.
Background/Discussion
Staff met with the Downtown Elk River Business Association (DERBA) on July 15 to solicit feedback on the
city-owned Furniture & Things Community Event Center's Overlook Café, 21+ Lounge, and Catering services'
interest in providing food and adult beverages during the final Summer Concert Series show of the summer,
performed by The Fabulous Armadillos at Rivers Edge Park. This concert consistently draws over 1,000
attendees each year.
Overall, DERBA provided positive and supportive feedback. No businesses downtown have an alcohol
caterer's permit at this time. The Furniture & Things Community Event Center's Minnesota Department of
Public Safety's Alcohol Caterers Permit enables city staff to provide this level of service within city parks, and
a Special Event Permit is not needed.
Financial Impact
There is no revenue share with DERBA or any other business/non-profit for this one-time event.
Mission/Policy/Goal
Work with citizens to achieve goals.
Attachments
None
Page 133 of 213
Page 134 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.10
Meeting Date
July 20, 2026
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Item Description
Northbound Liquor - Call for Sale of Bonds
Reviewed by
Lori Stich
Cal Portner
Justin Dunford
Action Requested
Approve, by motion, Resolution 26-50 calling for the sale of bonds as a Public Hearing on August 17, 2026,
during the City Council's Regular Meeting for the Northbound Liquor store construction project.
Background/Discussion
Process overview:
Action Date
Call for Sale of Bonds by City Council July 20, 2026
Send Public Hearing Notice on Abatement to Star
News
July 21, 2026
Public Hearing Notice Published July 25, 2026
Public Hearing on Tax Abatement August 17, 2026
Distribute Official Statement Mid-August
Rating Call with Standard and Poors (S & P) Late-August
Sale of Bonds September 8, 2026
Closing on Bond Proceeds By September 28, 2026
Financial Impact
New Northbound Liquor will have a $7,500,000 bond to construct the new store and utilize annual store
profits for the bond repayment schedule.
Uses of Funds ($7,690,000):
▪ Total Underwriter's Discount (1.200%) = $92,280
▪ Cost of Issuance = $95,000
▪ Deposit to Project Construction Fund = $7,500,000
▪ Rounding Amount = $2,720
Page 135 of 213
Mission/Policy/Goal
Responsible for every dollar - good stewards.
Attachments
1. Resolution 26-50: Elk River Abate Bonds 2026A Authorization
2. PreSale Report 2026A
Page 136 of 213
1
4915-9185-4780.1
CITY OF ELK RIVER, MINNESOTA
RESOLUTION NO. 26-50
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF
APPROXIMATELY $7,690,000 GENERAL OBLIGATION TAX
ABATEMENT BONDS, SERIES 2026A
BE IT RESOLVED by the City Council (the “Council”) of the City of Elk River, Sherburne County,
Minnesota (the “City”), as follows:
1. Bonds Authorized.
(a) The City has determined to finance various public improvements, including the
construction of a new liquor store (the “Project”).
(b) Under Minnesota Statutes, Chapter 475, as amended, and Sections 469.1812
through 469.1815, as amended (collectively, the “Act”), the City is authorized to grant a property
tax abatement on specified parcels in order to pay for all or part of the cost of financing or providing
public infrastructure, help acquire or construct public facilities, provide employment opportunities,
and provide access to services for residents of the City.
(c) It is necessary and expedient to the sound financial management of the affairs of
the City for the City to issue general obligation bonds, pursuant to the Act, to provide financing for
the Project.
(d) Following a public hearing to be held on August 17, 2026, the City Council will
consider a resolution (the “Abatement Resolution”) approving a property tax abatement (the
“Abatements”) for certain property in the City (the “Abatement Parcels”) over a period of years,
in an amount sufficient to pay the principal amount of and a portion of the interest on bonds issued
to finance a portion of the Project (the “Abatement Project”). If approved, the Abatements will be
pledged to the repayment of the Bonds.
2. Issuance of Bonds.
(a) The City Council finds it necessary and expedient to the sound financial management of
the affairs of the City to issue its General Obligation Tax Abatement Bonds, Series 2026A (the “Bonds”),
in the proposed aggregate principal amount of $7,690,000, pursuant to the Act to provide financing for the
Project.
(b) The City is authorized by Section 475.60, subdivision 2(9) of the ct to negotiate
the sale of the Bonds, it being determined that the City has retained an independent municipal
advisor in connection with such sale. The actions of the City staff and municipal advisor in
negotiating the sale of the Bonds are ratified and confirmed in all respects.
3. Sale of Bonds. To provide funds to finance the Project, the City will issue and sell the
Bonds in the proposed aggregate principal amount of $7,690,000. The principal amount of the Bonds is
subject to adjustment in accordance with the official Terms of Proposal to be prepared in connection with
the offering and the sale of the Bonds.
Page 137 of 213
2
4915-9185-4780.1
4. Authority of Municipal Advisor. Ehlers and Associates, Inc. (the “Municipal Advisor”) is
authorized and directed to negotiate the sale of the Bonds. The City Council will meet on Tuesday,
September 8, 2026, or another date selected by City staff, to consider proposals on the Bonds and take any
other appropriate action with respect to the Bonds.
5. Authority of Bond Counsel. The law firm of Kutak Rock LLP, as bond counsel to the City
(“Bond Counsel”), is authorized to act as bond counsel and to assist in the preparation and review of
necessary documents, certificates and instruments relating to the Bonds. The officers, employees and agents
of the City are hereby authorized to assist Bond Counsel in the preparation of such documents, certificates,
and instruments.
6. Covenants. In the resolution awarding the sale of the Bonds, the City Council will set forth
the covenants and undertakings required by the Act.
7. Official Statement. In connection with the sale of the Bonds, the officers or employees of
the City are authorized and directed to cooperate with the Municipal Advisor and participate in the
preparation of an official statement for the Bonds and to deliver it on behalf of the City upon its completion.
8. Reimbursement. The Internal Revenue Service has issued Treas. Reg. § 1.150-2 (the
“Reimbursement Regulations”) providing that proceeds of tax-exempt bonds used to reimburse prior
expenditures will not be deemed spent unless certain requirements are met. The City expects to incur
certain expenditures with respect to the Project that may be financed temporarily from City funds on hand
other than bonds, and reimbursed from the proceeds of the tax-exempt Bonds in a principal amount of up
to $7,690,000.
8.02 The City has determined to make a declaration of official intent (the “Declaration”) to
reimburse certain costs with respect to the Project from proceeds of the Bonds in accordance with the
Reimbursement Regulations.
8.03 All reimbursed expenditures will be capital expenditures, costs of issuance of the Bonds,
or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Reimbursement
Regulations.
8.04 This Declaration has been made not later than 60 days after payment of any original
expenditure to be subject to a reimbursement allocation with respect to the proceeds of the Bonds, except
for the following expenditures: (a) costs of issuance of bonds; (b) costs in an amount not in excess of
$100,000 or 5% of the proceeds of an issue; or (c) “preliminary expenditures” up to an amount not in excess
of 20% of the aggregate issue price of the issue or issues that finance or are reasonably expected by the City
to finance the project for which the preliminary expenditures were incurred. The term “preliminary
expenditures” includes architectural, engineering, surveying, bond issuance, and similar costs that are
incurred prior to commencement of acquisition, construction or rehabilitation of a project, other than land
acquisition, site preparation, and similar costs incident to commencement of construction.
8.05 This Declaration is an expression of the reasonable expectations of the City based on the
facts and circumstances known to the City as of the date hereof. The anticipated original expenditures for
the Project and the principal amount of the Bonds described herein are consistent with the City’s budgetary
and financial circumstances. No sources other than proceeds of the Bonds to be issued by the City are, or
are reasonably expected to be, reserved, allocated on a long-term basis, or otherwise set aside pursuant to
the City’s budget or financial policies to pay such expenditures.
8.06 This Declaration is intended to constitute a declaration of official intent for purposes of the
Page 138 of 213
3
4915-9185-4780.1
Reimbursement Regulations.
Approved this July 20, 2026, by the City Council of the City of Elk River, Minnesota.
CITY OF ELK RIVER,
MINNESOTA
Mayor
ATTEST:
City Clerk
Page 139 of 213
July 20, 2026
PRE-SALE REPORT FOR
City of Elk River, Minnesota
$7,690,000 General Obligation Tax Abatement Bonds,
Series 2026A
Prepared by:
Ehlers
3001 Broadway Street, Suite 320
Minneapolis, MN 55413
Advisors:
Stacie Kvilvang, Senior Municipal Advisor
Jason Aarsvold, Senior Municipal Advisor
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Page 140 of 213
Presale Report
City of Elk River, Minnesota
July 20, 2026
Page 1
Proposed Issue:
$7,690,000 General Obligation Tax Abatement Bonds, Series 2026A
Purposes:
The proposed issue includes financing for the construction of a new liquor store. Principal will
be paid with tax abatement revenues and interest will be paid from ad valorem property taxes.
However, it is the intent of the City to cancel all or a portion of the annual tax abatement or
tax levy and pay all or a portion of debt service with liquor revenues.
Authority:
The Bonds are being issued pursuant to Minnesota Statutes, Chapters:
•469
•469.1814
•475
The City is required to hold a public hearing on the abatement and the public purpose it
serves. The hearing will be held on August 17, 2026. In addition, under the Tax Abatement
Authority, the amount of property taxes abated in any year for the Bonds, together with any
outstanding annual abatements, may not exceed 1) 10% of the City's net tax capacity (NTC)
or 2) $200,000, whichever is greater. Since the City’s NTC for Pay 2026 is $44,685,533, the
greater amount would be $4,468,553.
The City is only abating the principal amount of the bonds and the average annual abatement
is $384,500 which is less than the maximum amount allowed under the Tax Abatement
Authority.
The Bonds will be general obligations of the City for which its full faith, credit and taxing
powers are pledged.
Term/Call Feature:
The Bonds are being issued for a term of 21 years. Principal on the Bonds will be due on
February 1 in the years 2028 through 2047. Interest will be due every six months beginning
August 1, 2027.
The Bonds will be subject to prepayment at the discretion of the City on February 1, 2036, or
any date thereafter.
EXECUTIVE SUMMARY OF PROPOSED DEBT
Page 141 of 213
Presale Report
City of Elk River, Minnesota
July 20, 2026
Page 2
Bank Qualification:
Because the City is expecting to issue no more than $10,000,000 in tax exempt debt during
the calendar year, the City will be able to designate the Bonds as “bank qualified” obligations.
Bank qualified status broadens the market for the Bonds, which can result in lower interest
rates.
Rating:
The City’s most recent bond issues were rated by S&P Global Ratings. The current rating on
those bonds is "AA+" / Stable. The City will request a new rating for the Bonds.
If the winning bidder on the Bonds elects to purchase bond insurance, the rating for the issue
may be higher than the City's bond rating in the event that the bond rating of the insurer is
higher than that of the City.
Basis for Recommendation:
Based on your objectives, financial situation and need, risk tolerance, liquidity needs,
experience with the issuance of Bonds and long-term financial capacity, as well as the tax
status considerations related to the Bonds and the structure, timing and other similar matters
related to the Bonds, we are recommending the issuance of Bonds as a suitable option.
Method of Sale/Placement:
We are recommending the Bonds be issued as municipal securities and offered through a
competitive underwriting process. You will solicit competitive bids, which we will compile on
your behalf, for the purchase of the Bonds from underwriters and banks.
An allowance for discount bidding will be incorporated in the terms of the issue. The discount
is treated as an interest item and provides the underwriter with all or a portion of their
compensation in the transaction.
If the Bonds are purchased at a price greater than the minimum bid amount (maximum
discount), the unused allowance may be used to reduce your borrowing amount.
Premium Pricing:
In some cases, investors in municipal bonds prefer “premium” pricing structures. A premium
is achieved when the coupon for any maturity (the interest rate paid by the issuer) exceeds
the yield to the investor, resulting in a price paid that is greater than the face value of the
bonds. The sum of the amounts paid in excess of face value is considered “reoffering
premium.” The amount of the premium varies, but it is not uncommon to see premiums for
new issues in the range of 2.00% to 10.00% of the face amount of the issue. This means that
an issuer with a $2,000,000 offering may receive bids that result in proceeds of $2,040,000
to $2,200,000.
Page 142 of 213
Presale Report
City of Elk River, Minnesota
July 20, 2026
Page 3
For this issue of Bonds we have been directed to use the net premium to reduce the size of
the issue/increase the net proceeds for the project. The resulting adjustments may slightly
change the true interest cost of the issue, either up or down.
The amount of premium can be restricted in the bid specifications. Restrictions on premium
may result in fewer bids, but may also eliminate large adjustments on the day of sale and
unintended impacts with respect to debt service payment. Ehlers will identify appropriate
premium restrictions for the Bonds intended to achieve the City’s objectives for this financing.
Review of Existing Debt:
We have reviewed all outstanding indebtedness for the City and find that there are no
refunding opportunities at this time.
We will continue to monitor the market and the call dates for the City’s outstanding debt and
will alert you to any future refunding opportunities.
Continuing Disclosure:
Because the City has more than $10,000,000 in outstanding debt subject to a continuing
disclosure undertaking (including this issue) and this issue does not meet an available
exemption from continuing disclosure, the City will be agreeing to provide certain updated
Annual Financial Information and its Audited Financial Statement annually, as well as
providing notices of the occurrence of certain reportable events to the Municipal Securities
Rulemaking Board (the “MSRB”), as required by rules of the Securities and Exchange
Commission (SEC). The City is already obligated to provide such reports for its existing
bonds, and has contracted with Ehlers to prepare and file the reports.
Arbitrage Monitoring:
The City must ensure compliance with certain sections of the Internal Revenue Code and
Treasury Regulations (“Arbitrage Rules”) throughout the life of the issue to maintain the tax-
exempt status of the Bonds. These Arbitrage Rules apply to amounts held in construction,
escrow, reserve, debt service account(s), etc., along with related investment income on each
fund/account.
IRS audits will verify compliance with rebate, yield restriction and records retention
requirements within the Arbitrage Rules. The City’s specific arbitrage responsibilities will be
detailed in the Tax Certificate (the “Tax Compliance Document”) prepared by your Bond
Attorney and provided at closing.
The Bonds may qualify for one or more exception(s) to the Arbitrage Rules by meeting 1)
small issuer exception, 2) spend down requirements, 3) bona fide debt service fund limits, 4)
reasonable reserve requirements, 5) expenditure within an available period limitations, 6)
investments yield restrictions, 7) de minimis rules, or; 8) borrower limited requirements.
An Ehlers arbitrage expert will contact the City within 30 days after the sale date to review
the City’s specific responsibilities for the Bonds. The City is currently receiving arbitrage
services from Ehlers in relation to the Bonds.
Page 143 of 213
Presale Report
City of Elk River, Minnesota
July 20, 2026
Page 4
Investment of Bond Proceeds:
Ehlers can assist the City in developing a strategy to invest your Bond proceeds until the
funds are needed to pay project costs. A member of Ehlers Investment Partners will reach out
to you to discuss.
Other Service Providers:
This debt issuance will require the engagement of other public finance service providers. This
section identifies those other service providers, so Ehlers can coordinate their engagement
on your behalf. Where you have previously used a particular firm to provide a service, we have
assumed that you will continue that relationship. For services you have not previously
required, we have identified a service provider. Fees charged by these service providers will
be paid from proceeds of the obligation, unless you notify us that you wish to pay them from
other sources. Our pre-sale bond sizing includes a good faith estimate of these fees, but the
final fees may vary. If you have any questions pertaining to the identified service providers or
their role, or if you would like to use a different service provider for any of the listed services
please contact us.
Bond Counsel: Kutak Rock LLP
Paying Agent: Bond Trust Services Corporation
Rating Agency: S&P Global Ratings (S&P)
Summary:
The decisions to be made by the City Council are as follows:
• Accept or modify the finance assumptions described in this report
• Adopt the resolution attached to this report.
Page 144 of 213
Presale Report
City of Elk River, Minnesota
July 20, 2026
Page 5
Pre-Sale Review by City Council: July 20, 2026
Public Hearing on Tax Abatement August 17, 2026
Due Diligence Call to Review Official Statement and
Conference Call With Rating Agency: Week of August 24, 2026
Distribute Official Statement: August 27, 2026
City Council Meeting to Award Sale of the Bonds: September 8, 2026
Estimated Closing Date: September 29, 2026
Attachments
Estimated Sources and Uses of Funds
Estimated Proposed Debt Service Schedule
Resolution Authorizing Ehlers to Proceed with Bond Sale
EHLERS’ CONTACTS
Stacie Kvilvang, Senior Municipal Advisor (651) 697-8506
Jason Aarsvold, Senior Municipal Advisor (651) 697-8512
Emily Wilkie, Senior Public Finance Analyst (651) 697-8588
Alicia Gage, Senior Financial Analyst (651) 697-8551
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
Page 145 of 213
City of Elk River, Minnesota
$7,690,000 General Obligation Tax Abatement Bonds, Series 2026A
Assumes Current Market BQ AA+ Rates plus 50bps
Sources & Uses
Dated 09/29/2026 | Delivered 09/29/2026
Sources Of Funds
Par Amount of Bonds $7,690,000.00
Total Sources $7,690,000.00
Uses Of Funds
Total Underwriter's Discount (1.200%)92,280.00
Costs of Issuance 95,000.00
Deposit to Project Construction Fund 7,500,000.00
Rounding Amount 2,720.00
Total Uses $7,690,000.00
Series 2026A GO Tax Abate | SINGLE PURPOSE | 6/26/2026 | 8:34 AM
Page 146 of 213
City of Elk River, Minnesota
$7,690,000 General Obligation Tax Abatement Bonds, Series 2026A
Assumes Current Market BQ AA+ Rates plus 50bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
09/29/2026 -----
08/01/2027 --245,521.39 245,521.39 -
02/01/2028 180,000.00 2.950%146,337.25 326,337.25 571,858.64
08/01/2028 --143,682.25 143,682.25 -
02/01/2029 285,000.00 3.050%143,682.25 428,682.25 572,364.50
08/01/2029 --139,336.00 139,336.00 -
02/01/2030 295,000.00 3.110%139,336.00 434,336.00 573,672.00
08/01/2030 --134,748.75 134,748.75 -
02/01/2031 305,000.00 3.200%134,748.75 439,748.75 574,497.50
08/01/2031 --129,868.75 129,868.75 -
02/01/2032 310,000.00 3.250%129,868.75 439,868.75 569,737.50
08/01/2032 --124,831.25 124,831.25 -
02/01/2033 320,000.00 3.350%124,831.25 444,831.25 569,662.50
08/01/2033 --119,471.25 119,471.25 -
02/01/2034 335,000.00 3.400%119,471.25 454,471.25 573,942.50
08/01/2034 --113,776.25 113,776.25 -
02/01/2035 345,000.00 3.450%113,776.25 458,776.25 572,552.50
08/01/2035 --107,825.00 107,825.00 -
02/01/2036 355,000.00 3.550%107,825.00 462,825.00 570,650.00
08/01/2036 --101,523.75 101,523.75 -
02/01/2037 370,000.00 3.650%101,523.75 471,523.75 573,047.50
08/01/2037 --94,771.25 94,771.25 -
02/01/2038 380,000.00 3.750%94,771.25 474,771.25 569,542.50
08/01/2038 --87,646.25 87,646.25 -
02/01/2039 395,000.00 3.950%87,646.25 482,646.25 570,292.50
08/01/2039 --79,845.00 79,845.00 -
02/01/2040 410,000.00 4.000%79,845.00 489,845.00 569,690.00
08/01/2040 --71,645.00 71,645.00 -
02/01/2041 430,000.00 4.050%71,645.00 501,645.00 573,290.00
08/01/2041 --62,937.50 62,937.50 -
02/01/2042 445,000.00 4.100%62,937.50 507,937.50 570,875.00
08/01/2042 --53,815.00 53,815.00 -
02/01/2043 465,000.00 4.150%53,815.00 518,815.00 572,630.00
08/01/2043 --44,166.25 44,166.25 -
02/01/2044 485,000.00 4.200%44,166.25 529,166.25 573,332.50
08/01/2044 --33,981.25 33,981.25 -
02/01/2045 505,000.00 4.250%33,981.25 538,981.25 572,962.50
08/01/2045 --23,250.00 23,250.00 -
02/01/2046 525,000.00 4.300%23,250.00 548,250.00 571,500.00
08/01/2046 --11,962.50 11,962.50 -
02/01/2047 550,000.00 4.350%11,962.50 561,962.50 573,925.00
Total $7,690,000.00 -$3,750,025.14 $11,440,025.14 -
Yield Statistics
Bond Year Dollars $93,626.06
Average Life 12.175 Years
Average Coupon 4.0053221%
Net Interest Cost (NIC)4.1038845%
True Interest Cost (TIC)4.1048421%
Bond Yield for Arbitrage Purposes 3.9740611%
All Inclusive Cost (AIC)4.2418620%
IRS Form 8038
Net Interest Cost 4.0053221%
Weighted Average Maturity 12.175 Years
Series 2026A GO Tax Abate | SINGLE PURPOSE | 6/26/2026 | 8:34 AM
Page 147 of 213
City of Elk River, Minnesota
$7,690,000 General Obligation Tax Abatement Bonds, Series 2026A
Assumes Current Market BQ AA+ Rates plus 50bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I
105%
Overlevy
02/01/2027 -----
02/01/2028 180,000.00 2.950%391,858.64 571,858.64 600,451.57
02/01/2029 285,000.00 3.050%287,364.50 572,364.50 600,982.73
02/01/2030 295,000.00 3.110%278,672.00 573,672.00 602,355.60
02/01/2031 305,000.00 3.200%269,497.50 574,497.50 603,222.38
02/01/2032 310,000.00 3.250%259,737.50 569,737.50 598,224.38
02/01/2033 320,000.00 3.350%249,662.50 569,662.50 598,145.63
02/01/2034 335,000.00 3.400%238,942.50 573,942.50 602,639.63
02/01/2035 345,000.00 3.450%227,552.50 572,552.50 601,180.13
02/01/2036 355,000.00 3.550%215,650.00 570,650.00 599,182.50
02/01/2037 370,000.00 3.650%203,047.50 573,047.50 601,699.88
02/01/2038 380,000.00 3.750%189,542.50 569,542.50 598,019.63
02/01/2039 395,000.00 3.950%175,292.50 570,292.50 598,807.13
02/01/2040 410,000.00 4.000%159,690.00 569,690.00 598,174.50
02/01/2041 430,000.00 4.050%143,290.00 573,290.00 601,954.50
02/01/2042 445,000.00 4.100%125,875.00 570,875.00 599,418.75
02/01/2043 465,000.00 4.150%107,630.00 572,630.00 601,261.50
02/01/2044 485,000.00 4.200%88,332.50 573,332.50 601,999.13
02/01/2045 505,000.00 4.250%67,962.50 572,962.50 601,610.63
02/01/2046 525,000.00 4.300%46,500.00 571,500.00 600,075.00
02/01/2047 550,000.00 4.350%23,925.00 573,925.00 602,621.25
Total $7,690,000.00 -$3,750,025.14 $11,440,025.14 $12,012,026.40
Significant Dates
Dated 9/29/2026
First Coupon Date 8/01/2027
Yield Statistics
Bond Year Dollars $93,626.06
Average Life 12.175 Years
Average Coupon 4.0053221%
Net Interest Cost (NIC)4.1038845%
True Interest Cost (TIC)4.1048421%
Bond Yield for Arbitrage Purposes 3.9740611%
All Inclusive Cost (AIC)4.2418620%
IRS Form 8038
Net Interest Cost 4.0053221%
Weighted Average Maturity 12.175 Years
Series 2026A GO Tax Abate | SINGLE PURPOSE | 6/26/2026 | 8:34 AM
Page 148 of 213
City of Elk River, Minnesota
$7,690,000 General Obligation Tax Abatement Bonds, Series 2026A
Assumes Current Market BQ AA+ Rates plus 50bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I 105% of Total
Tax
Abatement
Revenue Levy/(Surplus)
02/01/2027 -------
02/01/2028 180,000.00 2.950%391,858.64 571,858.64 600,451.57 384,500.00 215,951.57
02/01/2029 285,000.00 3.050%287,364.50 572,364.50 600,982.73 384,500.00 216,482.73
02/01/2030 295,000.00 3.110%278,672.00 573,672.00 602,355.60 384,500.00 217,855.60
02/01/2031 305,000.00 3.200%269,497.50 574,497.50 603,222.38 384,500.00 218,722.38
02/01/2032 310,000.00 3.250%259,737.50 569,737.50 598,224.38 384,500.00 213,724.38
02/01/2033 320,000.00 3.350%249,662.50 569,662.50 598,145.63 384,500.00 213,645.63
02/01/2034 335,000.00 3.400%238,942.50 573,942.50 602,639.63 384,500.00 218,139.63
02/01/2035 345,000.00 3.450%227,552.50 572,552.50 601,180.13 384,500.00 216,680.13
02/01/2036 355,000.00 3.550%215,650.00 570,650.00 599,182.50 384,500.00 214,682.50
02/01/2037 370,000.00 3.650%203,047.50 573,047.50 601,699.88 384,500.00 217,199.88
02/01/2038 380,000.00 3.750%189,542.50 569,542.50 598,019.63 384,500.00 213,519.63
02/01/2039 395,000.00 3.950%175,292.50 570,292.50 598,807.13 384,500.00 214,307.13
02/01/2040 410,000.00 4.000%159,690.00 569,690.00 598,174.50 384,500.00 213,674.50
02/01/2041 430,000.00 4.050%143,290.00 573,290.00 601,954.50 384,500.00 217,454.50
02/01/2042 445,000.00 4.100%125,875.00 570,875.00 599,418.75 384,500.00 214,918.75
02/01/2043 465,000.00 4.150%107,630.00 572,630.00 601,261.50 384,500.00 216,761.50
02/01/2044 485,000.00 4.200%88,332.50 573,332.50 601,999.13 384,500.00 217,499.13
02/01/2045 505,000.00 4.250%67,962.50 572,962.50 601,610.63 384,500.00 217,110.63
02/01/2046 525,000.00 4.300%46,500.00 571,500.00 600,075.00 384,500.00 215,575.00
02/01/2047 550,000.00 4.350%23,925.00 573,925.00 602,621.25 384,500.00 218,121.25
Total $7,690,000.00 -$3,750,025.14 $11,440,025.14 $12,012,026.40 $7,690,000.00 $4,322,026.40
Significant Dates
Dated 9/29/2026
First Coupon Date 8/01/2027
Yield Statistics
Bond Year Dollars $93,626.06
Average Life 12.175 Years
Average Coupon 4.0053221%
Net Interest Cost (NIC)4.1038845%
True Interest Cost (TIC)4.1048421%
Bond Yield for Arbitrage Purposes 3.9740611%
All Inclusive Cost (AIC)4.2418620%
Series 2026A GO Tax Abate | SINGLE PURPOSE | 7/15/2026 | 1:41 PM
Page 149 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
6.1
Meeting Date
July 20, 2026
Prepared By
Jolene Richter, Deputy Clerk
Item Description
City of Elk River Volunteer of the Month
Reviewed by
Cal Portner
Justin Dunford
Action Requested
Mayor Dietz will recognize and present a plaque to the July Volunteer of the Month Award recipient.
Background/Discussion
Mayor Dietz established the City of Elk River Volunteer of the Month Award program to recognize Elk River
residents for their volunteer contributions and commitment to community service.
Financial Impact
None.
Mission/Policy/Goal
The City of Elk River Mission Statement.
Attachments
1. Volunteer of the Month Jim Wood
Page 150 of 213
Page 151 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
6.2
Meeting Date
July 20, 2026
Prepared By
Mark Dickinson, Fire Chief
Item Description
Recognize Jeff Smith for his 38 years of employment
with Elk River
Reviewed by
Mark Dickinson
Cal Portner
Justin Dunford
Action Requested
Thank and recognize Jeff Smith for his 38 years of service to the city.
Background/Discussion
Jeff Smith started with the fire department on June 1, 1988, and was hired as the Fire Prevention Specialist in
January 2005. Jeff is retiring as the city's Fire Marshal and Community Risk Reduction Specialist, and we want
to recognize his dedicated service to our community.
Financial Impact
None
Mission/Policy/Goal
Elk River Vision Statement
Attachments
1. Jeff Smith Day
2. Jeff Smith Retirement
Page 152 of 213
PROCLAMATION
WHEREAS, Jeff Smith is retiring from the Fire Department after 38 years of service; and
WHEREAS, Jeff has earned the respect and friendship of his peers, co-workers, and the Elk
River community; and
WHEREAS, For his dedicated service, the City Council extends their sincere appreciation to
Jeff and wish him a long, happy, and healthy retirement!
THEREFORE, I, John J. Dietz, Mayor of the City of Elk River, do hereby proclaim February
22, 2027, as JEFF SMITH DAY, in recognition and appreciation of the loyal and
professional service provided by Jeff.
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Page 154 of 213
Page 155 of 213
Page 156 of 213
Page 157 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
6.3
Meeting Date
July 20, 2026
Prepared By
Justin Dunford, City Clerk
Item Description
Retirement Recognition: Mark Dickinson
Reviewed by
Cal Portner
Justin Dunford
Action Requested
Thank and recognize Mark Dickinson for his service to the city.
Background/Discussion
Mark has been the Elk River Fire Chief since November 2018. He has had a long and distinguished public
service career, including as a full-time firefighter for the City of St. Paul.
During his tenure with the City of Elk River, he has grown the recruitment and training of new firefighters to
ensure coverage. He oversaw the planning and expansion of Fire Station #2 and the new build-out of Fire
Station #3. He also developed an officer leadership training program to further professionalize the
department's paid-on-call leadership team.
Mark has also been an active community volunteer and has left a positive legacy in Elk River. We wish Mark
the very best in his new endeavors.
Financial Impact
none
Mission/Policy/Goal
Elk River Vision Statement
Attachments
1. Mark Dickinson Retirement Recognition
Page 158 of 213
Presented to
Mark Dickinson
In appreciation for 8 years of dedication and
service, with the respect of the City Council,
fellow employees, and the Elk River community.
Thank you for your loyalty and professional service.
Page 159 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
6.4
Meeting Date
July 20, 2026
Prepared By
Mark Dickinson, Fire Chief
Item Description
Promotion of Chad Yess to Lieutenant
Reviewed by
Mark Dickinson
Cal Portner
Justin Dunford
Action Requested
Mayor Dietz and Council to recognize the recent promotion of firefighter Chad Yess to the position of
Lieutenant and execute the Oath of Office.
Background/Discussion
Firefighter Chad Yess has successfully completed a year-long Officer Development Program and has the full
confidence of the fire department's officers to be promoted to the position of Lieutenant.
Financial Impact
None.
Mission/Policy/Goal
Elk River Mission Statement
Attachments
None
Page 160 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
6.5
Meeting Date
July 20, 2026
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Item Description
Introduce Park and Recreation Framework Plan -
ISG Consultants
Reviewed by
Jeff Shelby
Cal Portner
Justin Dunford
Action Requested
Staff will introduce the Park and Recreation Framework Plan consultants from ISG.
Background/Discussion
ISG Project Leads
▪ Claire Roth, Planner: Fueled by enthusiasm for fostering connections, Claire will oversee the
planning process from start to finish. She will oversee community engagement and lead planning
endeavors with finesse, using her knack for asking pertinent questions to spark dialogue and inspire
collaboration with key stakeholders. From the initial stages to the final execution, she will listen with
intent, develop strategies that unite diverse voices, and promote inclusive participation. Drawing upon
her comprehensive project management experience, Claire will collaborate with the City and ISG to
seamlessly navigate the planning process and remain on track with milestone progress.
▪ Jay Lotthammer, Development Strategist: For 35 years, Jay has dedicated his career to
enhancing recreation, park, and trail opportunities that support active and engaged communities. His
expertise and leadership in facility planning and program development have supported lasting, high-
quality recreational experiences for residents across Minnesota. Since joining ISG in the past year, he
has helped numerous communities plan their park systems and community assets. While serving as the
parks and recreation director for the City of Eden Prairie, he led development of their Parks,
Recreation, and Natural Resources Guide Plan as well as the expansion of the community center and
the development of premier athletic complexes, multi-use trails, and neighborhood parks.
Financial Impact
None
Mission/Policy/Goal
Together we win
Page 161 of 213
Attachments
None
Page 162 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
7.1
Meeting Date
July 20, 2026
Prepared By
Chris Leeseberg, Senior Planner
Item Description
Conditional Use Permit: Bluff Impacts, Randall
Tesdahl - 16892 Yale St NW
Reviewed by
Zack Carlton
Cal Portner
Justin Dunford
Action Requested
Approve, by motion, the Conditional Use Permit with the following conditions to satisfy the standards set
forth in Section 30-654:
1. The applicant shall have the pathway professionally engineered and designed to ensure long-term slope
stability and minimize erosion potential.
2. The pathway width shall accommodate safe access without encumbering ADA mobility requirements
and shall not exceed 8 feet in width.
3. The pathway shall be designed with the flattest practical grade to reduce erosion and improve
accessibility.
4. Existing vegetation shall be preserved to the greatest extent practicable, with only selective removal
permitted as necessary for construction.
5. Appropriate erosion and sediment control measures shall be installed and maintained during
construction.
6. Any plans, once finalized, shall be reviewed and approved by the City Environmental Department.
7. A grading permit shall be obtained prior to commencement of any land-disturbing activities.
8. Any retaining wall exceeding four (4) feet in height shall require a separate building permit and shall be
designed by a Minnesota-licensed structural engineer.
9. The applicant shall comply with all recommendations and requirements of the Minnesota Department
of Natural Resources, if applicable.
10. The Conditional Use Permit shall remain subject to all applicable City Code requirements and permit
conditions.
Background/Discussion
The applicant is requesting approval of a Conditional Use Permit (CUP) to allow construction of an access
pathway within a bluff area along the Mississippi River to provide access from the upper portion of the
Page 163 of 213
property to the lower portion of his property. The CUP is required under the ordinance to review the
impacts on the bluff, not the pathway itself.
The subject property is approximately 1.65 acres in size, is zoned Focus Area Study (FAST), and is guided as
Mixed Residential in the Comprehensive Plan.
The applicant has resided at the property since 2014 and is requesting the pathway to improve access to the
lower portion of the property. The applicant has indicated that they are a 100 percent service-connected
disabled veteran through the Department of Veterans Affairs and that their condition is progressing to the
point where an electric mobility device may be necessary. The proposed pathway is intended to provide safe
and practical access to portions of the property that may otherwise become inaccessible.
The properties immediately north and south of the subject site utilize a cross-access easement over the
subject property to access lower portions of their respective properties.
Planning Commission
During the public hearing, the neighbor to the south wanted to know what the proposed pathway would be
used for, if the owner could hunt on his property, whether hours of use of the pathway could be established,
and how the area by the river be cleaned up?
▪ The proposed pathway, which is entirely on the applicant’s property, will be used by the property
owner to access the lower area of their property.
▪ The Police Chief or their designee may approve a written request to hunt on the property. Staff
directed the neighbor to contact the Police Department.
▪ The city is not going to restrict the times when a property owner can access their personal property.
▪ The neighbor was also directed to contact the city’s Code Enforcement Official with concerns related
to debris by the river.
The applicant stated he is requesting the CUP to allow access to all of his property; he is not proposing a
dock, and he likely will need mobility assistance in the future.
In response to the public comments, the Planning Commission discussed two amendments to the conditions:
compliance with ADA requirements and requiring project plans to be approved by the Environmental
Division. The Commission unanimously recommended approval of the request with the two amendments.
Financial Impact
None
Mission/Policy/Goal
Work with citizens to achieve goals.
Attachments
1. Planning Commission Staff Report dated June 23, 2026
2. Tesdahl Email
3. CU 26-06 Conditional Use Permit
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The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Planning Commission
Item Number
5.1
Meeting Date
June 23, 2026
Prepared By
Chris Leeseberg, Senior Planner
Item Description
Conditional Use Permit: Bluff Impacts within the
Shoreland Management District, Randall Tesdahl -
16892 Yale St NW
Reviewed by
Zack Carlton
Action Requested
Recommend, by motion, approval of the Conditional Use Permit with the following conditions to satisfy the
standards set forth in Section 30-654:
1. The pathway shall be professionally engineered and designed to ensure long-term slope stability and
minimize erosion potential.
2. The pathway width shall be limited to the minimum width necessary to accommodate safe access and
mobility needs.
3. The pathway shall be designed with the flattest practical grade to reduce erosion and improve
accessibility.
4. Existing vegetation shall be preserved to the greatest extent practicable, with only selective removal
permitted as necessary for construction.
5. Appropriate erosion and sediment control measures shall be installed and maintained during
construction.
6. A grading permit shall be obtained prior to commencement of any land-disturbing activities.
7. Any retaining wall exceeding four (4) feet in height shall require a separate building permit and shall be
designed by a Minnesota-licensed structural engineer.
8. The applicant shall comply with all recommendations and requirements of the Minnesota Department
of Natural Resources, if applicable.
9. Any modifications to the approved plans shall be subject to review and approval by the City.
10. The Conditional Use Permit shall remain subject to all applicable City Code requirements and permit
conditions.
Background/Discussion
The applicant is requesting approval of a Conditional Use Permit (CUP) to allow construction of an access
pathway within bluff area of the Mississippi River to provide access from the upper portion of the property to
the lower portion of the site.
Page 165 of 213
The subject property is approximately 1.65 acres in size, zoned Focus Area Study (FAST), and is guided as
Mixed Residential in the Comprehensive Plan. The Mixed Residential land use designation consists of
neighborhoods with multiple housing types, including single-family detached homes, townhomes, duplexes, and
small-scale multifamily buildings. Mixed Residential areas include existing residential neighborhoods where a
gentle increase in density is appropriate, as well as new neighborhood subdivisions.
The applicant has resided at the property since 2014 and would like to construct a pathway to improve access
to the lower portion of the property. He has indicated that he is a 100 percent service-connected disabled
veteran through the Department of Veterans Affairs and that their condition is progressing to the point
where an electric mobility device may be necessary. The proposed pathway is intended to provide safe and
practical access to portions of the property that may otherwise become inaccessible.
The properties immediately north and south of the subject site currently utilize a cross-access easement over
the subject property to access lower portions of their respective properties.
The proposed pathway will be located within a sensitive bluff area subject to Shoreland Ordinance regulations.
Because bluff areas are susceptible to erosion and instability, special consideration must be given to the
design, construction, and long-term maintenance of the pathway.
Environmental Review
The Shoreland Ordinance generally prohibits fill and excavation within bluff areas due to their sensitivity and
susceptibility to erosion. The proposed pathway must be engineered to ensure long-term slope stability and
minimize future maintenance requirements.
Existing vegetation should be preserved to the greatest extent practical, with only selective removals
permitted as necessary for construction. Preservation of vegetation will provide natural screening from the
water and assist in maintaining bluff stability.
The pathway should be limited to the minimum width necessary to accommodate safe access and be designed
with the flattest practical grade to reduce erosion potential and improve accessibility.
At the time of this report, comments from the Minnesota Department of Natural Resources had not yet been
received. Any recommendations or requirements provided by the DNR must be incorporated into the final
design and construction plans.
Building Department Review
A separate grading permit will be required prior to commencement of any land-disturbing activities.
Any retaining wall exceeding four (4) feet in height shall require a building permit and must be designed and
certified by a Minnesota-licensed structural engineer.
Applicable Regulations
The issuance of a Conditional Use Permit can be ordered only if the use at the proposed location:
1. Will not endanger, injure or detrimentally affect the use and enjoyment of other property in the immediate
vicinity or the public health, safety, morals, comfort, convenience or general welfare of the neighborhood or the
city.
The proposed pathway is intended to improve accessibility and safe movement within the applicant's property.
The use is accessory in nature and will not introduce increased activity or operational impacts to neighboring
Page 166 of 213
properties. Subject to engineering review and implementation of erosion control measures, the pathway will
not create adverse impacts to neighboring properties or public welfare.
2. Will be consistent with the comprehensive plan.
The property is guided as Mixed Residential, which supports continued residential use of the property and
associated residential improvements. The pathway is an accessory improvement that supports the continued
residential use and enjoyment of the property and does not conflict with the goals or policies of the
Comprehensive Plan. The request is consistent with the Comprehensive Plan.
Staff do not see a need to impose specific conditions to satisfy this standard.
3. Will not impede the normal and orderly development and improvement of surrounding vacant property.
The pathway is limited in scope and will not alter surrounding land use patterns, development opportunities,
or access to adjacent properties. The existing cross-access easement serving neighboring properties will
remain available. The proposal will not impede future development of nearby properties.
Staff do not see a need to impose specific conditions to satisfy this standard.
4. Will be served adequately by and will not adversely affect essential public facilities and services including
streets, police and fire protection, drainage, refuse disposal, water and sewer systems, parks and schools; and
will not, in particular, create traffic congestion or interference with traffic on adjacent and neighboring public
thoroughfares.
The proposed pathway will not generate additional traffic, demand for public services, or impacts to public
infrastructure. Access to the site will remain unchanged, and no adverse effects on utilities, emergency
services, or transportation systems are anticipated.
With the proposed conditions, there should be no adverse effects on drainage.
5. Will not involve uses, activities, processes, materials, equipment and conditions of operation that will be
detrimental to any persons or property because of excessive traffic, noise, smoke, fumes, glare, odors, dust or
vibrations.
The pathway is a passive residential improvement and will not generate ongoing noise, traffic, emissions,
odors, or other nuisances. Temporary construction-related impacts can be managed through standard permit
requirements and erosion control measures.
Staff do not see a need to impose specific conditions to satisfy this standard.
6. Will not result in the destruction, loss or damage of a natural, scenic or historic feature of major importance.
The bluff area is a significant natural feature. However, the proposed pathway can be designed to minimize
impacts through careful engineering, preservation of existing vegetation, limited grading, and implementation
of erosion control measures. Approval conditions requiring preservation of vegetation, minimal disturbance,
and compliance with agency recommendations will help protect the scenic and environmental qualities of the
bluff area. The pathway shall be professionally engineered and designed with the flattest practical grade, with
only selective removal of vegetation to ensure long-term slope stability and minimize erosion potential.
7. Will fully comply with all other requirements of this Code, including any applicable requirements and Standards
for the issuance of a license or permit to establish and operate the proposed use in the city.
Page 167 of 213
Compliance with all applicable City Code requirements will be achieved through the CUP process, grading
permit review, engineering review, and any required building permits. Retaining walls exceeding four feet in
height must be designed by a Minnesota-licensed structural engineer and permitted separately. Any
recommendations received from the Minnesota DNR shall also be incorporated into the project.
If denial of such a permit should occur, it shall accompany recommendations or determinations by findings or
a report stating how the proposed use does not comply with the standards set forth in Section 30-654.
In the review of the standards for CUP as outlined, it appears that the request is consistent with all of these
standards.
Financial Impact
None
Mission/Policy/Goal
Ethical, efficient, and responsible.
Attachments
1. Location Map
2. Narrative
3. Submitted Plans
4. Aerial-Contours
Page 168 of 213
Page 169 of 213
Legal Description of Property
The narrative is your opportunity to describe, promote, and sell your proposal to the
Planning Commission and/or City Council before the meeting(s). Please fill in the
following information explaining your request in detail (type N/A if not applicable).
Describe the scope of your project (what is being proposed)? For example: we are
proposing the construction of a new daycare facility or, to allow for a motor vehicle sales
office with motor vehicle repairs in X-square feet of the existing building.
Pathway down side of hill to accommodate access to the lower one half of my personal
property. My name is Randall D Tesdahl, my wife Margaret R Tesdahl live at 16892 Yale
St. NW Elk River MN. I served 20 plus years in the United states Marine Corps having
retired September 30th 1997. I am 100% service connected disabled via the VA . As well
as Social Security Disability. One of the main issues of my disability is that I have
Parkinson's a disease that has no cure and is progressive in nature . My entire life I have
been very involved with the outdoors hunting fishing trapping photographing wildlife. In
fact in my work prior to retiring as the State Adjuant/E.D. of The American Legion, I
helped establish several outdoor programs in the state of Minnesota for disabled
veterans .
My wife and I once owned 10 acres in crowing county that was wooded as well as 10
acres in Anoka County which again was wooded. We sold both of those properties in
2014 when we found this property. When we moved in, residents in this neighborhood
were allowed to archery hunt deer turkey, small game, as well as duck hunt on the
Mississippi. Those activities have now been reduced to turkey by archery only.
When we bought, we were made aware of and researched an easement that is on file
with sherburne county. The easement when drafted was done so by the people that
owned my lot. The Easement Includes the two properties to my south and the two
properties to my north, crossing my property. We all used that easement Rd. I recently
went through a long court battle with my new neighbor to the immediate South that did
not want me to use the easement. It was discovered in court that my property was not
specifically listed on that easement. The court could not reliably say that the people that
owned my lot, whom drafted and created and paid for the easement Rd. Did not list their
own lot number because why, they owned it ?
That court finding clearly limits my access to 1/2 of my property. It also reinforced the
fact that property owners to my North and South have the full legal right to cross my
property on that easement to access the lower sections of their properties, yet I cannot
access mine.
In 2019I was diagnosed with Parkinson's disease related to my years of service at Camp
Lejuern and the use of contaminated water there. I had to retire on LT Disability. In the
time since, my condition has worsened. I have used a cane as well as a walker since my
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2019 diagnosis. And in my recent visits with my Parkinson's team at the VA it was noted
that my condition is progressing to the point they are considering me for an electric form
of mobility.
I have lost my deer hunting, my small-game hunting, my duck hunting, and now my
access.
Hours of Operation N/A
Number of Employees N/A
Number of parking stalls required by
ordinance: City Ordinance Section 30-
903 outlines these requirements.
0
Number of existing and proposed parking
stalls
0
If screening, not associated with outdoor
storage, is being proposed, what will it
consist of?
None.
What are the proposed building
materials? The required building materials
vary from zoning district to zoning district.
See project plans.
Is outdoor storage being proposed? If yes,
detail what is being stored, how
much/many, and what is the proposed
screening? City Ordinance Section 30-
807 outlines these requirements.
No.
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Page 175 of 213
From:Randy Tesdahl
To: Chris Leeseberg; Joseph Hale; Randy Tesdahl
Subject:Tesdahl property CUP
Date:Thursday, June 25, 2026 4:46:05 PM
Hello Chris, and fellow commission members : Thank you for reviewing our CUP last
evening. Chriss thank you for assisting us through this.
As to the many issues not relevant to the CUP in any way that my neighbor to my
immediate south brought up in an attempt to muddy the waters.
The trash………. there are tires and steel pipes down there left from the sale of my dock.
And some plastic barrels also left from the sale of our dock. As to Garbage there is no
garbage whitch I’m sure most people envision as food waist and Paper waist that a
person has a service for weekly removal which we have. Never been garbage. I Assure
you that there is no Garbage down there. There is a wooden box blind and a feeder that
the previous owner of our property used as a hunting hut, all of with I am planning to
remove if
I get a way to get down there.
As to the claims or inference she made of me pointing cameras and such in the
direction of her home. All claims of that nature have been debunked by the Elk River
Police department, as well as Sherburne county court hearing relative to the easement..
As to the night driving up and down the easement over and over many times…………I may
have used my truck probably no more than 5 times after dark down there
None of which have nothing whatsoever to do with the requested CUP. She is quite good
at muddying the waters and throwing inapplicable things into the mix just to draw the
attention of the mediator away from what the true issue at hand is.
A garden yes, I have one it's a big one. I use only the amount of chemical needed to
control the weeds.
Now, to the things relative to the CUP.
1. The 4-foot restriction on retaining walls. Referring to the submitted plans you will see
the blocks being used are 24 inches tall and the wall will require using only 2 of those
high.
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2 As to the addition of outside materials that may make it more susceptible to wash
out…You can see in the plan that the contractor is using a layering method of crushed
granite, class 5 rock, and a professional grade matting.
As to the removal of existing plants and material …. There were multiple trees that were
infected with oak wilt, and we were given city permission the take those Trees down
As to the width of the path, the plan is to be a min of 6 feet to a max of 8 feet wide.
As to the need of a grading permit, we are in the process of getting that accomplished.
Again, thank you all for your part of making it possible for us to access and enjoy the
lower third of out lot.
Chriss, please pass this to appropriate city officials
Get Outlook for iOS
Page 177 of 213
CITY OF ELK RIVER
SHERBURNE COUNTY
CONDITIONAL USE PERMIT
Case No. CU 26-06
Permit. Subject to the terms and conditions set forth herein, the City of Elk River hereby grants a
Conditional Use Permit (“Permit”) requested by Randall Tesdahl for the following use:
Conditional Use Permit to build an access trail in the Mississippi River Bluff at 16892 Yale
St NW
Property. The Permit is for the following described property (“Subject Property”) in the City of
Elk River, Sherburne County, Minnesota:
Lot 6, Block 1, Mississippi Heights, Sherburne County, Minnesota
Owner. Owner of the Subject Property at time of the approval of the Permit:
Randall Tesdahl & Margaret Tesdahl Trust, owner
Conditions. The Permit is issued subject to the following conditions:
1. The applicant shall have the pathway professionally engineered and designed to
ensure long-term slope stability and minimize erosion potential.
2. The pathway width shall accommodate safe access without encumbering ADA
mobility requirements and shall not exceed 8 feet in width.
3. The pathway shall be designed with the flattest practical grade to reduce erosion and
improve accessibility.
4. Existing vegetation shall be preserved to the greatest extent practicable, with only
selective removal permitted as necessary for construction.
5. Appropriate erosion and sediment control measures shall be installed and
maintained during construction.
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6. Any plans, once finalized, shall be reviewed and approved by the City Environmental
Department.
7. A grading permit shall be obtained prior to commencement of any land-disturbing
activities.
8. Any retaining wall exceeding four (4) feet in height shall require a separate building
permit and shall be designed by a Minnesota-licensed structural engineer.
9. The applicant shall comply with all recommendations and requirements of the
Minnesota Department of Natural Resources, if applicable.
10. The Conditional Use Permit shall remain subject to all applicable City Code
requirements and permit conditions.
Termination of Permit. The Permit shall remain in effect only for so long as the conditions set
for the herein are complied with. The City may revoke the Permit following a public hearing for
violation of the terms and/or conditions set forth in the Permit.
Lapse. If within two (2) years of the issuance of the Permit the proposed work described in a
conditional use permit has not been substantially completed, the permit shall expire and become
void, except that the council may, following recommendation of the planning commission, extend
the permit for an additional period determined by the council on the receipt of a request for a
permit extension prior to its expiration. A conditional use permit authorizes only the use specified
in the permit and shall expire if, for any reason, the authorized use ceases for more than six (6)
months.
Criminal Penalty. Both the owner and any occupant of the Subject Property are responsible for
compliance with the permit. Violation of the terms of the Permit is a criminal misdemeanor.
Recording. The Permit shall be recorded against the title to Subject Property.
Dated: July 20, 2026.
CITY OF ELK RIVER
By: ___________________________________
Mayor John J. Dietz
By: ___________________________________
City Clerk Justin Dunford
STATE OF MINNESOTA )
) ss.
COUNTY OF SHERBURNE )
The foregoing instrument was acknowledged before me this 20th day of July,
2026, by John J. Dietz and Justin Dunford, respectively, the Mayor and City Clerk of the City of Elk
River, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the
authority granted by the City Council.
Page 179 of 213
____________________________________
Notary Public
DRAFTED BY:
City of Elk River
13065 Orono Parkway NW
Elk River, MN 55330
Phone: 763-635-1032
Page 180 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
7.2
Meeting Date
July 20, 2026
Prepared By
Chris Leeseberg, Senior Planner
Item Description
Conditional Use Permit: Motor Vehicle Repair, Uval
Butuc - 18332 Joplin St NW
Reviewed by
Zack Carlton
Cal Portner
Justin Dunford
Action Requested
Approve, by motion, the Conditional Use Permit with the following conditions to satisfy the standards set
forth in Section 30-654:
1. The Conditional Use Permit shall authorize only vehicle body work and no mechanical repair work,
including engine, transmission, drivetrain, exhaust, or similar vehicle repairs, shall be conducted on the
property.
2. All repair activities shall occur entirely within the enclosed building, and all openings in the building
envelope shall be closed when repair activities are occurring.
3. The north side of the back parking lot shall be screened, as shown on the Staff Exhibit 7-20-2026, by a
factory-finished six-foot high, 100 percent opaque fence.
4. The outdoor storage of operable vehicles shall be allowed only in the designated parking stalls leased
to the applicant, one vehicle deep, and shall not be within any drive lanes.
5. No outdoor storage of inoperable (non-roadworthy vehicles), abandoned vehicles, vehicle parts,
equipment, materials, or repair-related items shall be permitted.
6. This approval does not authorize motor vehicle sales, vehicle display for sale, or any other use not
specifically approved herein.
7. All parking stalls on the property shall be striped in accordance with City Ordinance, Section 30-892.
8. The applicant and/or property owner shall ensure that any vehicle stored outside does not leak fuels
or other hazardous materials onto the ground.
9. Paints, chemicals, or other hazardous materials shall be handled and disposed of in accordance with
the Minnesota Pollution Control Agency (MPCA).
10. Schedule a site visit with the city building official and fire marshal to inspect the building for compliance
with all state and local building codes.
11. The applicant and/or property owner must apply for all required commercial building, electrical,
plumbing, and/or mechanical permits before any associated activities can occur.
Background/Discussion
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Motor vehicle repair facilities are allowed within the Business Park zoning district, subject to approval of a
Conditional Use Permit (CUP). The applicant is requesting approval of a CUP to operate a motor vehicle
repair business within an existing building located in the Business Park (BP) zoning district. The proposed use
consists exclusively of body work and repair activities involving vehicle body panels and exterior finishes. The
applicant has indicated that no mechanical repairs, including engine, transmission, drivetrain, or similar work,
will occur on the property. The applicant is also proposing outdoor storage of vehicles which will need to be
screened in accordance with the city code.
Public Comment
Staff received a phone call from the management company of the building/property directly to the south. They
indicated that Kepner Cleaning, on the subject parcel, was utilizing parking on the neighboring parcel, with
permission, but wanted to make sure that future parking demand was not created where their parcel would
be utilized.
One tenant expressed concerns about the potential noise impacts this business could have on the
surrounding office spaces, as it conducts business.
Planning Commission
During the public hearing, two residents expressed concerns about noise and the appearance of the property.
The Planning Commission questioned what exactly the use would be. Staff clarified it was body work, and the
applicant used the term cosmetic repair. The staff report outlined that the proposed use consists exclusively
of body work and repair activities involving vehicle body panels and exterior finishes. To address the noise
concerns, the commission recommended that Condition #2 be amended to indicate that all openings in the
building envelope need to be closed when repair activities occur.
Staff also recommended that Condition # 3 be amended to state that only the north side of the back parking
lot be screened, versus the entire parking lot.
The commission unanimously recommended approval of the request with the two amendments to the
conditions.
The conditions of approval reflect that only cosmetic/body work is being requested and that inoperable (non-
roadworthy vehicles), abandoned vehicles, vehicle parts, equipment, materials, or repair-related items cannot
be stored outside.
History
June 8, 2026 - The applicant and property owner were notified that damaged vehicles were being stored on
the property before CUP approval, which is not permitted, and were given until June 10, 2026, to remove
them. At that time, they removed the vehicles. This was before the Planning Commission meeting.
July 8, 2026 - Staff received a photo showing damaged vehicles once again being stored on the property,
including some of the same vehicles that had previously been removed. Staff notified the applicant and
property owner that all damaged vehicles were to be removed by July 10, 2026. As of July 13, 2026, the
vehicles had not been removed, and it appeared that additional vehicles had been brought onto the site.
July 14, 2026 – The applicant spoke with staff at city hall, and staff informed him that they would be
recommending denial of the application if the noncompliant vehicles were not removed.
July 15, 2026 – Staff visited the property and confirmed that all the vehicles had been removed.
Financial Impact
None
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Mission/Policy/Goal
Ethical, efficient, and responsible.
Attachments
1. Staff Exhibit 7-20-2026
2. Planning Commission Memo dated June 23, 2026
3. CU 26-07 Conditional Use Permit
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Recommended Fencing
10 foot setback Align
Staff Exhibit 7-20-2026
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The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
Planning Commission
Item Number
5.2
Meeting Date
June 23, 2026
Prepared By
Chris Leeseberg, Senior Planner
Item Description
Conditional Use Permit: Auto Repair, Uval Butuc -
18332 Joplin St NW
Reviewed by
Zack Carlton
Action Requested
Recommend, by motion, approval of the Conditional Use Permit with the following conditions to satisfy the
standards set forth in Section 30-654:
1. The Conditional Use Permit shall authorize only vehicle body work and no mechanical repair work,
including engine, transmission, drivetrain, exhaust, or similar vehicle repairs, shall be conducted on the
property.
2. All repair activities shall occur entirely within the enclosed building.
3. The entire back parking lot shall be screened by a six-foot high 100 percent opaque fence constructed
of factory-finished metal or vinyl material.
4. The outdoor storage of operable vehicles shall be allowed only in the screened in area.
5. The outdoor storage of inoperable or abandoned vehicles, vehicle parts, equipment, materials, or
repair-related items is prohibited.
6. This approval does not authorize motor vehicle sales, vehicle display for sale, or any other use not
specifically approved herein.
7. The parking lots shall be striped.
8. The applicant and/or property owner must apply for all required commercial building, electrical,
plumbing, and/or mechanical permits before any associated activities can occur.
Background/Discussion
Motor vehicle repair facilities are allowed within the Business Park zoning district subject to approval of a
Conditional Use Permit (CUP). The applicant is requesting approval of a CUP to operate a motor vehicle
repair business within an existing building located in the Business Park (BP) zoning district. The proposed use
consists exclusively of body work and restoration activities involving vehicle body panels and exterior finishes.
The applicant has indicated that no mechanical repairs, including engine, transmission, drivetrain, or similar
work, will occur on the property. The applicant is also proposing outdoor storage of vehicles which will need
to be screened in accordance with city code.
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The business will employ approximately five employees and operate between the hours of 9:00 a.m. and 5:00
p.m. Vehicle repair and maintenance activities will occur entirely within the building.
The property has 43 parking stalls in front of the building with additional parking spaces behind the building.
Public Comment
Staff received a phone call from the management company of the building/property directly to the south. They
indicated that Kepner Cleaning, on the subject parcel, was utilizing parking on the neighboring parcel, with
permission, but wanted to make sure that future parking demand was not created where their parcel would
be utilized.
Applicable Regulations
The issuance of a Conditional Use Permit can be ordered only if the use at the proposed location:
1. Will not endanger, injure or detrimentally affect the use and enjoyment of other property in the immediate
vicinity or the public health, safety, morals, comfort, convenience or general welfare of the neighborhood or the
city.
The proposed use is limited to body work repair activities conducted entirely within an enclosed building. The
applicant has stated that no mechanical repairs will occur on-site, reducing the potential for noise, odors,
hazardous materials, and other impacts commonly associated with full-service automotive repair facilities. No
outdoor storage of parts, equipment, or materials is proposed. Subject to compliance with all conditions of
approval, staff find that the proposed use will not adversely affect neighboring properties or the general
welfare of the area.
Staff do not see a need to impose specific conditions to satisfy this standard.
2. Will be consistent with the comprehensive plan.
The property is guided Industrial in the Comprehensive Plan. The Industrial land use category is intended to
accommodate both light and heavy industrial businesses, including manufacturing, warehousing, and similar
employment-generating activities located near major transportation corridors.
The proposed operation functions as a light industrial-type business involving vehicle restoration and repair
activities within an enclosed building. The use supports employment opportunities and is compatible with the
industrial character envisioned for the area.
Staff do not see a need to impose specific conditions to satisfy this standard.
3. Will not impede the normal and orderly development and improvement of surrounding vacant property.
There is no vacant land adjacent to the subject parcel and the proposed use will occupy an existing building
and does not require significant site modifications. The operation is compatible with other commercial and
industrial uses anticipated within the Business Park district. Staff find that the proposed use will not impede
the orderly development of surrounding land.
Staff do not see a need to impose specific conditions to satisfy this standard.
4. Will be served adequately by and will not adversely affect essential public facilities and services including
streets, police and fire protection, drainage, refuse disposal, water and sewer systems, parks and schools; and
Page 186 of 213
will not, in particular, create traffic congestion or interference with traffic on adjacent and neighboring public
thoroughfares.
The property is served by existing public streets and municipal utilities. The proposed operation includes five
employees and a limited number of customer and business vehicles. Six parking stalls are provided, exceeding
the minimum parking requirement of five stalls. Due to the limited scale of the operation and the absence of
retail vehicle sales, significant traffic generation is not anticipated. Staff find that the proposed use can be
adequately served by existing public facilities and services and will not create traffic congestion or interfere
with surrounding roadways.
Staff do not see a need to impose specific conditions to satisfy this standard.
5. Will not involve uses, activities, processes, materials, equipment and conditions of operation that will be
detrimental to any persons or property because of excessive traffic, noise, smoke, fumes, glare, odors, dust or
vibrations.
All repair activities are proposed to occur indoors within an enclosed structure. The applicant has indicated
that only body work will occur and that no mechanical repair work will be performed. The limited operational
scope and indoor nature of the use are expected to minimize noise and other potential nuisances. If the
applicant proposes the installation of a paint booth or similar facility, a building permit will be required, and
the operation will need to meet all standards to ensure odors do not impact adjacent tenant spaces.
As motor vehicle sales are not permitted within the Business Park zoning district, approval of this CUP does
not authorize the display, marketing, or sale of vehicles from the property. Any vehicle present on-site shall
be associated solely with the approved repair business. Additionally, all vehicles stored on-site shall be
operable, currently registered, or otherwise legally authorized for repair and restoration activities as
permitted by City Code.
6. Will not result in the destruction, loss or damage of a natural, scenic or historic feature of major importance.
The request involves occupancy of an existing developed site and building. No natural, scenic, or historic
features have been identified that would be impacted by the proposed use.
Staff do not see a need to impose specific conditions to satisfy this standard.
7. Will fully comply with all other requirements of this Code, including any applicable requirements and Standards
for the issuance of a license or permit to establish and operate the proposed use in the city.
Motor vehicle repair facilities are permitted within the Business Park zoning district through the Conditional
Use Permit process. Subject to compliance with all applicable City Code provisions, building and fire code
requirements, and the conditions of approval contained herein, the proposed use can comply with all
applicable regulations.
Staff recommend the entire back parking lot be screened to address all the outdoor storage occurring on site,
which is required in the BP district.
If denial of such a permit should occur, it shall accompany recommendations or determinations by findings or
a report stating how the proposed use does not comply with the standards set forth in Section 30-654.
Financial Impact
None.
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Mission/Policy/Goal
Ethical, efficient, and responsible.
Attachments
1. CU 26-07 Location Map
2. Narrative
3. Building Plan
4. Staff Exhibit
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The narrative is your opportunity to describe, promote, and sell your proposal to the
Planning Commission and/or City Council before the meeting(s). Please fill in the
following information explaining your request in detail (type N/A if not applicable).
Describe the scope of your project (what is being proposed)? For example: we are
proposing the construction of a new daycare facility or, to allow for a motor vehicle sales
office with motor vehicle repairs in X-square feet of the existing building.
We would like to use this property as a cosmetic repair shop (cosmetic meaning the shell
of a vehicle). All said vehicles will be and are owned by us. We will not perform
mechanical repairs of any kind, including but not limited to engines, transmissions, or
drivetrain components whatsoever. Thank you.
Hours of Operation 9 am-5 pm may differ on some days*
Number of Employees 5
Number of parking stalls required by
ordinance: City Ordinance Section 30-
903 outlines these requirements.
5
Number of existing and proposed parking
stalls
6
If screening, not associated with outdoor
storage, is being proposed, what will it
consist of?
N/A
What are the proposed building
materials? The required building materials
vary from zoning district to zoning district.
N/A
Is outdoor storage being proposed? If yes,
detail what is being stored, how
much/many, and what is the proposed
screening? City Ordinance Section 30-
807 outlines these requirements.
N/A
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18332 JOPLIN ST
18332 Joplin St NW | Elk River, MN 55330
This plan is for informational purposes only and is not a warranty, representation or agreement that the Shopping Center or the parking areas, roadways, access points, sidewalks, buildings or other improvements will be as shown hereon, or
that the occupants shown hereon will be in the Shopping Center.SITE PLANBoulder Creek Construction
Suite #18336 Northface Construction Suite #18334
Sky Light Express
Suite #18332
Kepner Cleaning
Suite #18330
Lorex Marketing
Suite #18324
Ideal Health
Suite #18322
Page 191 of 213
Page 192 of 213
CITY OF ELK RIVER
SHERBURNE COUNTY
CONDITIONAL USE PERMIT
Case No. CU 26-07
Permit. Subject to the terms and conditions set forth herein, the City of Elk River hereby grants a
Conditional Use Permit (“Permit”) requested by Uval Butuc for the following use:
Conditional Use Permit for a motor vehicle repair shop in the Business park (BP) zoning
district
Property. The Permit is for the following described property (“Subject Property”) in the City of
Elk River, Sherburne County, Minnesota:
That part of Lot 1, Block 1, Country Crossing Business Center Second Addition, Sherburne
County, Minnesota, lying North of a line described as follows:
Commencing at the Northeast corner of said Lot 1; thence Southerly along the East line of
said Lot 1 a distance of 260.00 feet to the point of beginning of said line to be hereinafter
described; thence West, perpendicular to said East line of Lot 1 to the West line of said Lot 1
and there terminating.
Owner. Owner of the Subject Property at time of the approval of the Permit:
Joplin Street LLC, owner
Conditions. The Permit is issued subject to the following conditions:
1. The Conditional Use Permit shall authorize only vehicle body work and no
mechanical repair work, including engine, transmission, drivetrain, exhaust, or
similar vehicle repairs, shall be conducted on the property.
2. All repair activities shall occur entirely within the enclosed building and all openings
in the building envelope shall be closed when repair activities are occurring.
Page 193 of 213
3. The north side of back parking lot shall be screened, as shown on the staff exhibit,
by a six-foot high 100 percent opaque fence constructed of factory finished metal or
vinyl material.
4. The outdoor storage of operable vehicles shall be allowed only in the screened in
area and in the applicants leased storage space.
5. No outdoor storage of inoperable or abandoned vehicles, vehicle parts, equipment,
materials, or repair-related items shall be permitted.
6. This approval does not authorize motor vehicle sales, vehicle display for sale, or any
other use not specifically approved herein.
7. The parking lots need to be striped.
8. The applicant and/or property owner must apply for all required commercial
building, electrical, plumbing, and/or mechanical permits before any associated
activities can occur.
Termination of Permit. The Permit shall remain in effect only for so long as the conditions set
for the herein are complied with. The City may revoke the Permit following a public hearing for
violation of the terms and/or conditions set forth in the Permit.
Lapse. If within two (2) years of the issuance of the Permit the proposed work described in a
conditional use permit has not been substantially completed, the permit shall expire and become
void, except that the council may, following recommendation of the planning commission, extend
the permit for an additional period determined by the council on the receipt of a request for a
permit extension prior to its expiration. A conditional use permit authorizes only the use specified
in the permit and shall expire if, for any reason, the authorized use ceases for more than six (6)
months.
Criminal Penalty. Both the owner and any occupant of the Subject Property are responsible for
compliance with the permit. Violation of the terms of the Permit is a criminal misdemeanor.
Recording. The Permit shall be recorded against the title to Subject Property.
Dated: July 20, 2026.
CITY OF ELK RIVER
By: ___________________________________
Mayor John J. Dietz
By: ___________________________________
City Clerk Justin Dunford
STATE OF MINNESOTA )
) ss.
COUNTY OF SHERBURNE )
The foregoing instrument was acknowledged before me this 20th day of July,
Page 194 of 213
2026, by John J. Dietz and Justin Dunford, respectively, the Mayor and City Clerk of the City of Elk
River, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the
authority granted by the City Council.
____________________________________
Notary Public
DRAFTED BY:
City of Elk River
13065 Orono Parkway NW
Elk River, MN 55330
Phone: 763-635-1032
Page 195 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
10.1
Meeting Date
July 20, 2026
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Item Description
Joint Session With Parks & Recreation Commission
- PIF CIP Discussion and Framework Plan Kickoff
Reviewed by
Jeff Shelby
Cal Portner
Justin Dunford
Action Requested
Discuss the Park Improvement Fund CIP and kick off the Framework Plan process facilitated by ISG (project
consultant).
Background/Discussion
The Parks & Recreation Commission met on July 8 and unanimously recommended, by those in attendance
(5-0), the included Capital Improvement Plan.
This CIP, pending City Council action, has a significant increase in fund allocation to the Park Improvement
Fund. Currently, the Liquor Fund transfers $250,000 annually as the PIF primary source of funding beyond
grants/sales tax initiatives. The fund has numerous capital improvements to maintain current levels of services.
The Commission has requested the transfer be increased based on the following schedule:
▪ 2026 = $250,000
▪ 2027 = $500,000
▪ 2028 = $750,000
▪ 2029 = $1,000,000
▪ 2030 = $1,000,000
▪ 2031 = $1,000,000
Further, the Parks & Rec Commission expressed concerns that several maintenance items (i.e., the turf
painter and Ginzu trail groomer) are funded utilizing the PIF CIP rather than the General Fund. These assets
are necessary to maintain current service levels.
The City Council and Park and Recreation Commission will discuss the CIP and help influence the
development of our Park and Recreation Framework plan for priorities, goals, and objectives going forward.
ISG staff will facilitate a 20-minute breakout session with Council and Commission members working together
before bringing feedback to be reviewed and shared together in the Joint Session.
Page 196 of 213
Financial Impact
The Liquor Fund is currently not in a financial position to provide the additional increase at this time. The
existing Northbound store has not been sold, and the new store construction bonds will be drawn from that
fund. The Liquor Fund is currently within $400,000 of its required minimum fund balance for reserve funds.
Mission/Policy/Goal
Support the growth and development of the community.Work with citizens to achieve goals.
Attachments
None
Page 197 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
10.2
Meeting Date
July 20, 2026
Prepared By
Cal Portner, City Administrator
Item Description
Craft Updated City Mission and Vision Statements
Reviewed by
Justin Dunford
Action Requested
Discuss and provide staff direction
Background/Discussion
In February 2016, the City Council and senior management staff met to review the adopted long-term plans,
such as the Comprehensive Plan, Parks Master Plan, Master Gravel Mining Plan, Mississippi Connections Plan,
FAST, and Capital Improvement Plan.
Following the review, the Council identified values they felt were important to the community and drafted and
refined an updated vision statement. In 2017, the Council crafted a mission statement and identified short-
term, mid-term, and long-term goals consistent with the adopted mission, vision, and long-term plans. Each
year since, the Council and senior staff meet to review the vision and mission statements and to update their
goals.
The mission and vision statements guide the goal implementation and the budgeting process.
The Council met on June 22, 2026, and identified a number of slight changes they wished to make to the
mission and vision statements.
Financial Impact
The City Mission and Vision Statements have no direct financial impact. However, they are intended to justify
future capital and operational budget expenditures.
Mission/Policy/Goal
N/A
Attachments
1. Vision Values Mission
2. CM Wagner Mission Vision Options
Page 198 of 213
3065 Orono Parkway
Elk River, MN 55330 Phone:
763.635.1000
www.ElkRiverMN.gov
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness,
exceptional service, and community engagement that encourages and inspires
prosperity.
Elk River Value Statements
▪ Welcome a revolutionary spirit that fosters a culture of exceptional service and community
participation.
▪ Nurture resourcefulness to leverage strengths and drive community prosperity.
▪ Cultivate/Revolutionize an environment to encourage and inspire diverse and meaningful
engagement.
The Elk River Mission
Where council and staff work with citizens to develop a sustainable and
prosperous community for all to live, work and play; and to appropriately
govern in an ever-changing environment.
Elk River Municipal Mission Components
▪ Opportunity to live, work, and play.
▪ Responsibly grow.
▪ Meet changing needs - Agile.
▪ Timeless
▪ Ethical, efficient, and responsible.
▪ Work with citizens to achieve goals.
▪ Responsible for every dollar – good stewards.
▪ Improve citizen quality of life.
▪ Reflect the culture of citizens and what is important.
▪ Together we win.
Page 199 of 213
Ideas submitted by CM Wagner, April 2025.
Mission
Together, council, staff, and citizens build a sustainable, thriving community where everyone can live,
work, and play. Through collaboration and shared responsibility, we govern with integrity, adapting to the
needs of our ever-changing world.
In partnership with our citizens, council and staff are committed to building a vibrant, sustainable
community where everyone feels at home — a place to live, work, and play together. We are
dedicated to nurturing an informed community, embracing transparency, and collaboration as we
meet the challenges of a changing world together.
Together, council, staff, and citizens are building a sustainable, thriving community where everyone has
the opportunity to live, work, and play. By fostering education, promoting shared knowledge, and valuing
open dialogue, we empower a fact-aware community to shape our future in an ever-changing world.
In partnership with our citizens, council and staff work to build a sustainable and prosperous home for
all. Through a shared commitment to education, informed decision-making, and open collaboration and
transparency, we govern and grow together, ready to meet the future with unity and strength.
Vision
A resilient and welcoming community, leading with innovation, inclusive engagement, and
exceptional service to build a sustainable, thriving future for generations to come.
"Rooted in Community, Growing for the Future"
"Building a Thriving Future Together"
6/22 Meeting Notes:
Mission
JW - Being mindful of changing trends but not trendy.
Leading with knowledge (not social media)
Leading with innovation
Looking forward even further if written today. Mindful of trends.
CP – coin replacement for “live, work, and play”?
JBC – Place people feel at home and connected with their neighbors
JF- Everyone having ownership in their community.
JBC Submission:
Vision: An innovative and welcoming community striving for inclusive engagement and
exceptional service to provide connection, restoration, and the most positive life possible for all.
Page 200 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
10.3
Meeting Date
July 20, 2026
Prepared By
Cal Portner, City Administrator
Item Description
Review and Update City Council Goals
Reviewed by
Justin Dunford
Action Requested
Discuss and provide staff direction to update City Council goals.
Background/Discussion
The Council reviewed and discussed its goals at the annual Council/Staff retreat on June 22, 2026. The
Council should review the redlined version of the goals, suggest and discuss additions, changes or deletions of
those goals.
The final goals list will be approved at a Regular Council Meeting.
Financial Impact
N/A
Mission/Policy/Goal
The goals fulfill the City Council's Mission and Community Vision.
Attachments
1. 2027 Goals Redline
Page 201 of 213
Current Adopted Goals
Approved June 2025
Short-term (2025-26)
▪ Commercial Development
▪ Budget and sinking fund for building repair.
o Transition of PW Facility bond to general levy (ongoing)
▪ Craft a Cost Participation Policy for Trail and Street Improvement Projects
▪ Fire Station #1 Construction
▪ Cannabound fully staffed and operational
▪ Northbound Liquor Construction
▪ 193rd Ave NW Cul-de-sac
▪ Implement Police Attrition Plan
▪ Park Asset Review – Neighborhood Playground Replacement
▪ Babcock Park parking lot improvements
▪ Assess availability of NorthStar Park and Ride Property Acquisition
▪ Review Impact of Street Reconstruction on business – Economic support
▪ Traffic Control Measures – School St./TH 169 during high-volume travel periods
▪ Industrial/Business Park Property
Mid-term (2030)
▪ Acquire business park land.
o Assist developers with private acquisition as needed.
▪ Commercial development
o CRT Zoning District
o Hotel/Hospitality Growth
▪ Oak Knoll/Hale’s Field improvement - collaboration with ISD #728
▪ Parks and Rec app – directions, ads, amenities, park features
▪ Communitywide Strategic Planning Implementation (downtown district)
▪ Implementation of Athletic Field Framework Plan
▪ Implementation of new Housing Study recommendations (workforce housing)
▪ Electronic Billboard Planning and Development
▪ Implement Police Attrition Plan
▪ Gravel Road Paving Plan
Long-term (2035)
▪ Urban Service Area expansion
▪ C/I development
▪ Trail connections
▪ Pedestrian Trail Connection downtown over/under the railroad and TH10.
▪ More retail development in western Elk River
▪ Riverwalk from Orono Park to City of Ramsey
▪ Highway 10 safety and mobility improvements, 165th Ave to Jarvis St.
▪ TH169 and 225th Avenue Safety Improvements
▪ Implementation of Downtown Small Area Study recommendations
▪ County Fairgrounds Development
Page 202 of 213
▪ CRT Zoning review/update
▪ Implement Athletic Field Framework Plan
▪ Consider Wapiti Campground acquisition if available
Page 203 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
12.1
Meeting Date
July 20, 2026
Prepared By
Lori Stich, Finance Manager
Item Description
June Financial Reports
Reviewed by
Lori Stich
Joe Stremcha
Cal Portner
Justin Dunford
Action Requested
Information only.
Background/Discussion
This report provides summary information regarding the overall level of revenues and expenditures in the
General Fund, the Community Event Center Special Revenue Fund, and the Enterprise Funds. These funds
provide an important picture of the city’s financial health.
For June, actual revenues (excluding property taxes and transfers-in) and expenditures should run about 50%
of the annual budget. It is natural for some items to vary from month to month, such as exceeding budget for
Supplies but being below budget for Services. This is not considered serious as long as the total expenditure
budget amount is not overspent. Significant variances from budget are highlighted below, accompanied by a
general discussion of the variance.
General Fund
Revenues:
▪ June revenues include the 70% advance of the first half of the property tax settlement. The remaining
balance is received in July.
▪ License & permit collections are 60% of budget estimates, consisting primarily of building-related
permits and liquor licenses.
▪ Charges for services are about 81% of estimates, with plan check fees, recreation fees, the first half of
the 2026-27 school liaison contract, and the second half of the Otsego fire contract making up the
majority of June collections.
▪ Transfers-in consist of ERMU’s 5% May monthly electric revenues. The remaining transfers-in will be
recorded mid-year.
Page 204 of 213
Expenditures:
▪ Total departmental expenditures are about 45% of budget. Most departments are within or below
budget estimates.
FTCenter
Through the end of June, revenues of $1,102,710 exceed expenditures of $989,910 by $112,800. The majority
of June collections consist of ice and facility rentals, while expenditures are primarily attributable to personal
services and utilities.
Financial Impact
N/A
Mission/Policy/Goal
Responsible for every dollar - good stewards.
Attachments
1. June Financial Reports
Page 205 of 213
General Fund As of:6/30/2026 50.00%OF YEAR COMPLETED
REVENUES Budget YTD Actual % of budget Budget Balance
Taxes
101-3-0000-3111 Current Ad Valorem Taxes 16,864,450.00 6,013,800.31 35.66%10,850,649.69
101-3-0000-3112 Delinquent Ad Valorem Taxes 0.00 636.93 0.00%(636.93)
101-3-0000-3121 Gravel Tax 220,000.00 9,623.97 4.37%210,376.03
101-3-0000-3131 Penalties/Interest 0.00 850.09 0.00%(850.09)
Total Taxes 17,084,450.00 6,024,911.30 35.27%11,059,538.70
Licenses & Permits
101-3-0000-3211 Liquor License 85,000.00 80,870.00 95.14%4,130.00
101-3-0000-3212 THC License 5,000.00 4,900.00 98.00%100.00
101-3-0000-3213 Cigarette License 4,000.00 600.00 15.00%3,400.00
101-3-0000-3214 Rental License 65,000.00 18,295.00 28.15%46,705.00
101-3-0000-3216 Mining License 27,000.00 27,398.70 101.48%(398.70)
101-3-0000-3217 Garbage Hauler License 2,500.00 0.00 0.00%2,500.00
101-3-0000-3218 Other Business License/Permit 18,000.00 9,845.00 54.69%8,155.00
101-3-0000-3229 NPDES Permit 17,000.00 12,250.00 72.06%4,750.00
101-3-0000-3231 Building Permit 550,000.00 301,578.72 54.83%248,421.28
101-3-0000-3232 Plumbing/Heating Permit 180,000.00 115,493.32 64.16%64,506.68
101-3-0000-3233 Permit Surcharge 700.00 5,300.47 757.21%(4,600.47)
101-3-0000-3235 Animal License 500.00 450.00 0.00%50.00
101-3-0000-3237 Other Non-Business Lic/Permit 30,000.00 16,464.86 54.88%13,535.14
Total Licenses & Permits 984,700.00 593,446.07 60.27%391,253.93
Intergovernmental Revenue
101-3-0000-3322 MV Credit 6,000.00 0.00 0.00%6,000.00
101-3-0000-3323 Fire State Aid 300,000.00 1,000.00 0.33%299,000.00
101-3-0000-3325 Police 2% Aid 425,000.00 0.00 0.00%425,000.00
101-3-0000-3326 Police Training Reimb 35,000.00 0.00 0.00%35,000.00
101-3-0000-3329 State Crime Prevention Grant 50,000.00 22,096.35 44.19%27,903.65
101-3-0000-3330 Other State Grants 0.00 0.00 0.00%0.00
Total Intergovernmental Revenue 816,000.00 25,148.35 3.08%790,851.65
Charges for Services
101-3-0000-3412 Planning & Zoning Fees 25,000.00 18,740.00 74.96%6,260.00
101-3-0000-3413 Plan Check Fee 230,000.00 114,029.85 49.58%115,970.15
101-3-0000-3415 Special Assessment Search 500.00 60.00 12.00%440.00
101-3-0000-3417 Copies 1,500.00 836.68 55.78%663.32
101-3-0000-3418 Other General Govt Services 0.00 0.00 0.00%0.00
101-3-0000-3430 Lockout Fees 3,000.00 1,060.00 35.33%1,940.00
101-3-0000-3431 Police Services 50,000.00 8,231.42 16.46%41,768.58
101-3-0000-3432 School Liaison 200,000.00 209,974.50 104.99%(9,974.50)
101-3-0000-3434 Animal Impound Fee 500.00 400.00 80.00%100.00
101-3-0000-3436 Fire Contracts 480,050.00 488,701.65 101.80%(8,651.65)
101-3-0000-3437 Fire Services 5,000.00 0.00 0.00%5,000.00
101-3-0000-3438 Fire Inspections 0.00 0.00 0.00%0.00
101-3-0000-3451 Street Services 35,000.00 14,942.08 42.69%20,057.92
101-3-0000-3452 Engineering Services Reimb 20,000.00 0.00 0.00%20,000.00
101-3-0000-3461 Recreation Fees 52,500.00 52,202.50 99.43%297.50
101-3-0000-3462 Sr Center Activities 55,500.00 24,272.66 43.73%31,227.34
101-3-0000-3463 Farmer's Market 15,000.00 25,544.00 170.29%(10,544.00)
101-3-0000-3469 Elk RiverFest 15,000.00 14,280.00 95.20%720.00
Page 206 of 213
101-3-0000-3472 Park Use Fee 77,000.00 52,365.07 68.01%24,634.93
101-3-0000-3475 Building Rent 0.00 2,427.50 0.00%(2,427.50)
101-3-0000-3483 Sewer Inspection Fee 15,000.00 11,900.00 79.33%3,100.00
101-3-0000-3484 Contractor License Check 1,200.00 710.00 59.17%490.00
Total Charges for Services 1,281,750.00 1,040,677.91 81.19%241,072.09
Fines & Forfeits
101-3-0000-3510 Court Fines 170,000.00 52,350.57 30.79%117,649.43
Total Fines & Forfeits 170,000.00 52,350.57 30.79%117,649.43
Other Revenue
101-3-0000-3621 Interest Income 200,000.00 0.00 0.00%200,000.00
101-3-0000-3625 Refunds & Reimbursements 175,000.00 15,491.70 8.85%159,508.30
101-3-0000-3626 Contributions 27,000.00 31,000.00 114.81%(4,000.00)
101-3-0000-3629 Miscellaneous Revenue 12,000.00 5,852.70 48.77%6,147.30
Total Other Revenue 414,000.00 52,344.40 12.64%361,655.60
Transfers In
101-3-0000-3926 Transfer-Capital Outlay Reserv 89,000.00 0.00 0.00%89,000.00
101-3-0000-3942 Transfer-WWTS 187,200.00 0.00 0.00%187,200.00
101-3-0000-3943 Transfer-Liquor 850,000.00 0.00 0.00%850,000.00
101-3-0000-3944 Transfer-Garbage 62,400.00 0.00 0.00%62,400.00
101-3-0000-3945 Transfer-Utilities 1,500,000.00 770,526.65 51.37%729,473.35
101-3-0000-3946 Transfer-Stormwater 130,000.00 0.00 0.00%130,000.00
101-3-0000-3948 Transfer-EDA 49,900.00 0.00 0.00%49,900.00
101-3-0000-3949 Transfer-HRA 40,550.00 0.00 0.00%40,550.00
Total Transfers In 2,909,050.00 770,675.72 26.49%2,138,374.28
TOTAL GENERAL FUND REVENUES 23,659,950.00 8,559,554.32 36.18%15,100,395.68
Page 207 of 213
General Fund As of:6/30/2026 50.00%OF YEAR COMPLETED
EXPENDITURE SUMMARY
Budget YTD Actual % of budget Budget Balance
General Government
City Council 243,150.00 91,023.36 37.44%152,126.64
Communications 554,850.00 243,289.36 43.85%311,560.64
Administrative Services 722,950.00 310,893.89 43.00%412,056.11
Human Resources 471,650.00 211,887.65 44.92%259,762.35
Elections 53,550.00 6,523.40 12.18%47,026.60
Finance 1,040,450.00 467,744.47 44.96%572,705.53
Information Technology 846,850.00 379,949.19 44.87%466,900.81
Legal 340,000.00 152,901.98 44.97%187,098.02
Community Development / Planning 516,950.00 254,047.49 49.14%262,902.51
Building Maintenance 1,165,950.00 509,632.37 43.71%656,317.63
Total General Government 5,956,350.00 2,627,893.16 44.12%3,328,456.84
Public Safety
Police Administration 1,419,850.00 763,204.24 53.75%656,645.76
Patrol 4,299,800.00 1,870,848.71 43.51%2,428,951.29
Investigations 1,633,050.00 758,336.81 46.44%874,713.19
Police Support Services 1,038,050.00 477,243.36 45.97%560,806.64
Police Reserves 15,250.00 3,327.85 21.82%11,922.15
Public Safety Building 229,300.00 82,746.23 36.09%146,553.77
Fire Administration 1,533,000.00 510,300.72 33.29%1,022,699.28
Fire Operations 646,300.00 334,960.46 51.83%311,339.54
Emergency Management 34,250.00 25,798.34 75.32%8,451.66
Building Safety 614,200.00 264,571.36 43.08%347,378.64
Code Enforcement 142,150.00 62,995.88 44.32%79,154.12
Environmental 77,050.00 32,409.01 42.06%44,640.99
Total Public Safety 11,682,250.00 5,186,742.97 44.40%6,493,257.03
Public Works
Street Maintenance 1,885,900.00 819,289.77 43.44%1,066,610.23
Snow Removal 398,200.00 274,983.41 69.06%123,216.59
Equipment Services 465,400.00 208,007.87 44.69%257,392.13
Engineering 411,300.00 180,494.55 43.88%230,805.45
Total Public Works 3,160,800.00 1,482,775.60 46.91%1,678,024.40
Culture & Recreation
Parks Department 1,779,650.00 730,531.00 41.05%1,049,119.00
Parks & Rec Admin 586,900.00 264,483.19 45.06%322,416.81
Recreation Programs 147,750.00 75,496.47 51.10%72,253.53
Farmers Market 73,800.00 31,250.73 42.35%42,549.27
Sr Citizen Programs 272,450.00 119,044.46 43.69%153,405.54
Total Culture & Recreation 2,860,550.00 1,220,805.85 42.68%1,639,744.15
Economic Development
Economic Development 0.00 24,172.03 0.00%(24,172.03)
Energy City 0.00 0.00 0.00%0.00
Total Economic Development 0.00 24,172.03 0.00%(24,172.03)
TOTAL GENERAL FUND EXPENDITURES 23,659,950.00 10,542,389.61 44.56%13,115,310.39
REVENUES OVER/(UNDER) EXPENDITURES 0.00 (1,982,835.29)1,985,085.29
Page 208 of 213
Current
Budget
Year to Date
Actual
% of
Budget
Revenues:
Ice Rental $990,000 $423,434 42.77%
Admissions 10,000 7,556 75.56%
Dry Floor Events/Craft Shows 0 0 0.00%
Facility Rental 313,300 227,199 72.52%
Advertising/Naming Rights/Sponsorships 212,500 83,689 39.38%
Recreation fees (Skating/Hockey)160,000 91,873 57.42%
Concessions/catering/vending 470,000 254,719 54.20%
Other Revenues (interest, etc.)20,050 14,239 71.02%
Total Revenues $2,175,850 $1,102,710 50.68%
Operating expenses:
Personal services $1,006,450 $487,146 48.40%
Supplies 273,900 131,333 47.95%
Other services & charges 661,250 298,552 45.15%
Capital Outlay 153,150 65,179 42.56%
Transfers Out 0 7,700 0.00%
Total Expenditures $2,094,750 $989,910 47.26%
Revenues over/(under) expenditures $81,100 $112,800
CITY OF ELK RIVER
FTCENTER - BUDGET TO ACTUAL
MONTH ENDED JUNE 30, 2026
Budget, $2,175,850 Budget, $2,094,750
Actual
$1,102,710 Actual
$989,910
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Total Revenues Total Expenditures
FTCenter
June 2026
Page 209 of 213
Current
Budget
Year to Date
Actual
% of
Budget
Current
Budget
Year to Date
Actual
% of
Budget
Current
Budget
Year to Date
Actual
% of
Budget
Current
Budget
Year to Date
Actual
% of
Budget
Sales and cost of sales:
Sales 8,845,000$ 4,168,862$ 47.13%
Cost of sales (6,344,000) (2,636,803) 41.56%
Gross profit 2,501,000 1,532,059 61.26%
Operating revenues:
User charges - - - 2,868,500$ 1,261,981$ 43.99%2,132,000$ 874,666$ 41.03%680,500$ 293,385$ 43.11%
Delinquency collections - - - - - - - - - - - -
Other 5,400 2,705 50.10%200,000 379,694 189.85%- - - - - -
Total operating revenues 5,400 2,705 50.10%3,068,500 1,641,675 53.50%2,132,000 874,666 41.03%680,500 293,385 43.11%
Operating expenses:
Personal services 1,395,350 577,895 41.42%928,650 408,268 43.96%29,400 12,994 44.20%- - -
Supplies 40,000 8,397 20.99%329,000 119,358 36.28%2,000 - 0.00%1,000 - 0.00%
Other service charges 708,100 331,844 46.86%992,750 634,686 63.93%1,923,400 787,612 40.95%67,100 7,304 10.88%
Depreciation *60,000 - 0.00%1,710,000 - 0.00%- - - 500,000 - 0.00%
Total operating expenses 2,203,450 918,136 41.67%3,960,400 1,162,311 29.35%1,954,800 800,606 40.96%568,100 7,304 1.29%
Operating income (loss)302,950 616,628 203.54%(891,900) 479,363 -53.75%177,200 74,060 41.79%112,400 286,081 254.52%
Nonoperating revenues (expenses):
Interest income 75,000 - 0.00%130,000 - 0.00%15,000 - 0.00%35,000 - 0.00%
Interest expense/agent fees - - - (72,200) (37,168) 51.48%- - - - - -
Total nonoperating revenues (expenses)75,000 - 0.00%57,800 (37,168) -64.30%15,000 - 0.00%35,000 - 0.00%
Income (loss) before contributions & transfers 377,950 616,628 163.15%(834,100) 442,196 -53.01%192,200 74,060 38.53%147,400 286,081 194.08%
Contributions - connection fees - - - 1,000,000 591,342 59.13%- - - - - -
Sale of assets - - 0.00%- 11,870 0.00%- - 0.00%- - 0.00%
Transfers out (1,100,000) - 0.00%(187,200) (4,100) 2.19%62,400 - 0.00%(130,000) - 0.00%
NET INCOME (LOSS)(722,050) 616,628 -85.40%(21,300) 1,041,308 -4888.77%254,600 74,060 29.09%17,400 286,081 1644.14%
Items reclassified to balance sheet at year end:
Bond Proceeds - -
Capital Outlay (130,000) (811,026) - (182,200) (269,717) - - - - (100,000) - -
Bond Payment - - - (535,000) (535,000) - - - - - - -
Revenues over/(under) expenditures (852,050) (194,398) (738,500) 236,591 254,600 74,060 (82,600) 286,081
* Recorded at year-end
CITY OF ELK RIVER
ENTERPRISE FUNDS - BUDGET TO ACTUAL
MONTH ENDED JUNE 30, 2026
Liquor Sewer Garbage Stormwater
Page 210 of 213
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
12.2
Meeting Date
July 20, 2026
Prepared By
Lori Stich, Finance Manager
Item Description
2nd Quarter Investment Report
Reviewed by
Lori Stich
Joe Stremcha
Cal Portner
Justin Dunford
Action Requested
Information only
Background/Discussion
The purpose of this report is to update the City Council on the status of the various investments the city
maintains as of June 30, 2026.
Background
The investment policy complies with state statutes and generally follows the Government Finance Officers
Association (GFOA) model.
The investment goals for the City of Elk River are passive due to the allowable investments permitted under
state statutes. The city has four objectives for investing. In order of importance, they are: 1) safety of
principal, 2) liquidity, 3) return on investment, and 4) maintaining public trust. This means we are focused on
not losing the original investment, having sufficient funds on hand to meet ongoing operating cash needs,
getting a market rate of return, and not purchasing speculative investments.
State statutes limit the city’s ability to invest in many risky types of investments. The city is generally limited to
federal and state government obligations or agencies backed by them, rated debt of local governments, short-
term highly rated commercial paper, certificates of deposit, and money market accounts (with collateralization
if in excess of FDIC insurance amounts).
The city intends to hold investments until maturity, which means we will get the rate of return at which we
invest our funds. The finance staff ensures the city is sufficiently liquid by continually updating our forecast on
the anticipated cash flow needs over the next five-year period. We anticipate two large tax settlements each
year, along with the regularly scheduled debt service payments. We also build in a reserve balance maintained
in money market accounts in case of unexpected expenditures.
Page 211 of 213
Cities generally use a short-horizon benchmark such as the two-year Treasury Bill or some similar measure.
As of 6/30/26, the two-year T-bill was at 4.14%, up from 3.82% on 3/31/26. Our current portfolio yield is
roughly 4.44%.
Our primary reserve account is our 4M Fund, which is a money market account where many cities pool their
funds. It currently yields 3.59% with daily withdrawal privileges. The city must maintain a strong diversified
portfolio, prioritizing safety, liquidity, and flexibility in this market environment.
Financial Impact
N/A
Mission/Policy/Goal
Responsible for every dollar - good stewards.
Attachments
1. 06-2026 Investment summary
Page 212 of 213
RX XX694 • City of Elk River • Business Service AccountPrepared forCity of Elk RiverRisk profile:ConservativeReturn Objective:Current IncomeBond Summaryas of June 30, 2026Bond SummaryBond Overview52,036,000Total quantityTotal market value$50,051,039.92Total accrued interest$242,231.60Total market value plus accrued interest$50,293,271.52Total estimated annual bond interest$1,689,183.32Average yield to maturityAverage coupon3.36%4.44%3.37%4.44%Average current yieldAverage yield to worstAverage modified duration2.52Average effective maturity3.87Investment Type AllocationTaxable ($)Investment typeTotal ($)Tax-exempt /deferred ($)% ofbondport.Asset/Mortgage26,734,290.380.0026,734,290.3853.16Certificates of deposit1,481,322.720.001,481,322.722.95Municipals22,077,658.420.0022,077,658.4243.90Total$50,293,271.52$0.00$50,293,271.52100%Credit Quality of Bond Holdings75.63Aaa/AAA/AAAA2,842,981.243936.58Aa/AA/AAB18,407,518.5621.13A/A/AC573,133.8700.00Baa/BBB/BBBD0.0000.00Non-investment gradeE0.0062.93Certificate of depositF1,481,322.724053.73Not ratedG26,988,315.13Total100%$50,293,271.5294Effective credit rating% ofport.Value on06/30/2026 ($)IssuesBond Maturity ScheduleEffective maturity schedule2026202720282029203020312032203320342035203620372037 +Other0.02.55.07.510.05.5%7.4%14.3%14.0%17.1%17.0%16.2%8.2%0.0%0.0%0.0%0.0%0.0%0.0%Cash, mutual funds and some preferred securities are not included.$ MillionsIncludes all fixed income securities in the selected portfolio. Average yields and durations exclude Structured Product, Pass-Through, Perpetual Preferred, and Foreign securities.Accrued interest, if any, has been included in the total market value.Report created on: July 01, 2026Page 3of 31Page 213 of 213