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1d Redevelopment Agree Parker H CITYOF 690 City Center Drive PO Box 147 Chanhassen, Minnesota 55317 Phone 952.937.1900 General Fax 952.937.5739 Engineering Department Fax 952.937.9152 Building Department Fax 952.934.2524 Web Site www. ci. cha,hasse,, m,. ~ TO: Mayor and City Council FROM: DATE: SUB J: Todd Gerhardt, Acting City Manager July 5, 2001 ~)~, Consider Approval of a Private Redevelopment agreement with Parker Hannifin Corporation Attached for the city council's review is a Private Redevelopment Agreement between the City of Chanhassen and Parker Hannifin Corporation (see Attachment #1). The city council created TIF District No. 6 in May 1997 (see Attachment #2). In conjunction with the creation of this district; the Tax Increment Plan incorporated the city's current three year incentive-program for businesses meeting one of the following qualifications: 1. Discourage business from moving to another state or mUnicipality; 2. Increase employment in the state; 3. Preserve and enhance the tax base of the state. Parker Hannifin Corporation meets two of the three qualifications. They will be enhancing the tax base by approximately $56,267 per year and creating at least 4 new jobs. Parker Hannifin Corporation is proposing to construct a 32,000 sq. ft. multi-tenant facility on Lot 2, Block 1, Arboretum Business Park 2~a Addition. Attached you will also find the Parker Hannifin Corporation application for tax increment financing. The application includes the following information: 1. Statement of Public Purpose (see Attachment #3). 2. Zoning and Planning Analysis, Plans and Drawings of Project (see Attachment #4). 3. "But For" Analysis (see Attachment #5). The applicant completed the "But For" worksheet and the results show that if it were not for the TIF, the project would return 12.1% versus 13.4% after receiving the TIF assistance (see Attachment 4/5). The estimated amount of incentives available total $84,399.00 based on the city policy of three years worth of taxes minus fiscal disparities and school aid ', ~ of Chanhassen. A f~rowh~e communin, with clea, lakes, attalin, schools, a charmin¢ downtown, thrivin~ bminesm, and beautiful om'ks. A vreat o/ace to live. work. a,d o/m,. Mayor and City Council July 5, 2001 Page 2 contributions (see Attachment #6). The city would make payments back to Parker Hannifin Corporation on a "pay as you go" plan based on the new taxes generated from their facility: 2003 $28,133.00 2004 $28,133.00 2005 $28,133.00 Total Incentives $84,399.00 RECOMMENDATION Staff recommends approval of the Private Redevelopment Agreement with Parker Hannifin Corporation and their request for $84,399.00 in city assistance. ATTACHMENTS 1. Private Redevelopment Agreement 2. Location Map District 3. Application for Business Subsidy 4. Zoning and Planning Analysis, Plans and Drawings of Project 5. TIF Application/But For Analysis 6. Development Proposal/Estimated Taxes g:3adminXtgXparker hannifin pm.doc DRAFF 7.5.01 CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE CITY OF CHANHASSEN AND PARKER HANNIFIN CORPORATION This document was drafted by: KENNEDY & GRAVEN, CHARTERED (RHB) 470 Pillsbury Center 200 South Sixth Street Minneapolis, MN 55402 RHB-198514vi CH130-66 Section 1.1. Section 2.1. Section 2.2. Section 3.1. Section 3.2. Section 3.3. Section 3.4. Section 4.1. Section 4.2. Section 4.3. Section 5.1. Section 5.2. Section 5.3. Section 5.4. Section 5.5. Section 5.6. Section 5.7. Section 5.8. Section 5.9. Section 5.10. TABLE OF CONTENTS ARTICLE I Definitions Definitions ........................................................................................................ 2 ARTICLE II Representations and Warranties Representations by the City .............................................................................. 3 Representations by the Redeveloper ................................................................ 3 ARTICLE III Public Assistance Construction of the Minimum Improvements ................................................. 4 Reimbursement of Special Assessments .......................................................... 5 Business Subsidy Agreement ........................................................................... 5 No Representation Regarding Available Tax Increment ....................... . .......... 7 ARTICLE IV Tax Increment Tax Increment Certification .............................................................. i .............. 7 Real Property Taxes; Special Assessments ...................................................... 7 Assessment Agreement .................................................................................... 7 ARTICLE V Additional Provisions Equal Employment Opportunity ...................................................................... 8 Restrictions on Use ........................................................................................... 8 Soil Conditions ................................................................................................. 8 Notices and Demands ....................................................................................... 8 Disclaimer of Relationships ............................................................................. 8 Covenants Running with the Land ................................................................... 8 Modifications .................................................................................................... 9 Counterparts ..................................................................................................... 9 Assignment ....................................................................................................... 9 Subordination ................................................................................................... 9 SIGNATURES TESTIMONIALS RHB-198514vi CH130-66 SCHEDULE A SCHEDULE B SCHEDULE C SCHEDULE D REDEVELOPMENT PROPERTY LEGAL DESCRIPTION ASSESSMENT AGREEMENT AND ASSESSOR'S CERTIFICATION FORM OF LIMrI'ED REVENUE NOTE LIST OF PRELIMINARY PLAN DOCUMENTS RHB- 198514vl CH 130-66 CONTRACT FOR PRIVATE REDEVELOPMENT THIS AGREEMENT, made on or as of the day of ,2001, by and between the City of Chanhassen, a Minnesota municipal corporation (hereinafter referred to as the "City") and Parker Hannifin Corporation (hereinafter referred to as the "Redeveloper"), WITNESSETH: WHEREAS, the City has created and established Development District No. 6, (the "District") pursuant to Minnesota Statutes, §§ 469.124 through 469.154 (the "Act") and has created within the District, Tax Increment Financing District No. 6-1, (the '~I'ax Increment District") also pursuant to the Act; and WHEREAS, the City has further adopted its development district program (the "Program") for the District describing the objectives of the Program and the public assistance needed within the District to carry out the objectives of the Program; and WHEREAS, there has been presented by the Redeveloper to the City for its consideration a proposal for the development of a facility within the District on property located within the Tax Increment District; and WHEREAS, the City has reviewed the Redeveloper's development proposal and has determined that the development, if completed, would serve to accomplish the objectives of the Program. WHEREAS, in order to achieve the objectives of the Program the City has determined to provide aid and assistance to the Redevelopment Property by utilizing tax increment generated from the Redevelopment Property to reduce the special assessments levied to finance the public improvements in the District. WHEREAS, the City intends to fund the special assessment assistance and other redevelopment costs by using tax increments generated from the Redevelopment Property and the Minimum Improvements to be constructed thereon; and WHEREAS, the City believes that the redevelopment of the District pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable state and local laws and requirements under which the Program has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: RHB-198514vl CH130-66 1 ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 469.001-469.047 (formerly Municipal Housing and Redevelopment Act, Minnesota Statutes, Sections 462.411-462.711), as mended. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Assessed Market Value" or "Assessed Market Valuation" means the market value of real property as determined by the county assessor of the county in accordance with Minnesota Statutes, Section 273.11 (or as finally adjusted by the assessor, board of equalization, commisSioner of revenue, or any court). "Assessment Agreement" means the agreement in the form attached hereto as Schedule B among the Redeveloper, the City and the county assessor, which establishes a minimum Assessed Market Value for the Redevelopment Property and the Minimum Improvements. "Available Tax Increment" means any Tax Increment remitted to the City in the years 2003 through 2008 inclusive after first deducting therefrom: (i) payments previously made pursuant to section 4.2 of this Agreement; and (ii) any amounts needed to make payments to a school district pursuant to Minnesota Statutes, § 469.177, subd. 10. "Business Subsidy Act" means Minnesota Statutes, Sections 116J.993 through 116J.995. "City" means the City of Chanhassen, a Minnesota municipal corporation and statutory city according to the laws of the State of Minnesota. "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by the Redeveloper on the Redevelopment Property which shall be at least as detailed as the plans required to be submitted to the building inspector of the City. "County" means Carver County, Minnesota. "Limited Revenue Tax Increment Note" or "Note" means the limited revenue obligation of the City to pay the Redeveloper out of Available Tax Increment, the form of which is attached hereto as Schedule C. "Minimum Improvements" means the improvements described in the Preliminary Plans containing an office/warehouse facility of approximately 32,000 square feet. "Preliminary Plans" means those plan sheets and other descriptive material which are identified in the attached Schedule D. RHB- 198514v 1 CH130-66 2 "Redeveloper" means Parker Hannifin Corporation,, or its successors and assigns. "Redevelopment Property" means the real property, a legal description of which property is contained on the attached Schedule A. "Tax Increment" means that portion of the real property taxes paid with respect to the Redevelopment Property which is remitted to the City as tax increment pursuant to the Tax Increment Act. ''Tax Increment Act" means Ivlinnesota Statutes, Sections 469.174-. 179, as the same may be amended from time to time. ''Termination Date" means the date when the City has paid the full amount due under the terms of this Agreement and the Limited Revenue Tax Increment Note. ''Tax Official" means any city or county assessor; county auditor; city, county or state board of equalization, the commissioner of revenue of the state, any state or federal district court, the tax court of the state, or the State Supreme Court. "Unavoidable Delays" means delays which are the direct result of acts of God, unforeseen adverse weather conditions, labor disputes, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action causes delays, acts of any federal, state or local governmental unit (other than the City in enforcing its rights under this Agreement), City defaults as to the Redeveloper's delays, Redeveloper defaults as to the City's delays, or other matters which are not within the control of the Redeveloper as to the Redeveloper's delays or not within the control of the City as to the City's delays. ARTICLE II Representations and Warranties Section 2.1. Representations by the City. The City makes the following representations as the basis for the undertaking on its part herein contained: (a) The City has the right, power and authority to execute, deliver and perform its obligations according to this Agreement and all other documents to be executed by the City pursuant hereto. The City assures the Redeveloper that the individuals who execute this Agreement and all other documents executed by the City or on behalf of the City are duly authorized to sign the same on behalf of the City and to bind the City thereto. Section 2.2. Representations by the Redeveloper. The Redeveloper represents that: (a) The Redeveloper has the right, power and authority to execute, deliver and perform its obligations according to this Agreement. (b) If the Redeveloper constructs the Ivlinimum Improvements on the Redevelopment Property, it will do so in accordance with the terms of this Agreement, and all local, state and federal laws and zoning, building code and public health laws and regulations. RHB-198514vl CH~30X~ 3 (c) If constructed, the Minimum Improvements will have an Assessed Market Value of not less than $1,120,000 inclusive of the value of the Redevelopment Property. (d) As of this date, the Redeveloper has received no notice or communication from any local, state or federal official that the activities of the Redeveloper or the City in the Project Area may be or will be in violation of any environmental law or regulation. The Redeveloper is aware of no facts the existence of which would cause it to be in violation of any local, state or federal environmental law, regulation or review procedure. In the event that the City is required to take any action to obtain any necessary permits or approvals with respect to the Redevelopment Property under any local, state or federal environmental law or regulation, the Redeveloper will cooperate with the City in connection with such action. (e) If the Redeveloper constructs the Minimum Improvements, it will use its best efforts to do so in accordance with all applicable local, state or federal energy conservation laws or regulations. (f) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of any evidences of indebtedness, agreement or instrument of whatever nature to which the Redeveloper is now a party or by which it is bound, or constitutes a default under any of the foregoing. (g) The Redeveloper would not be willing to c6nstruct the Minimum Improvements but for the commitment by the City to grant financial assistance as outlined in this Agreement and the use of tax increment for such assistance is essential to the Redeveloper's ability to carry out its obligations under this Agreement. ARTICLE HI Public Assistance Section 3.1. Construction of the Minimum Improvements. Subject to the terms and conditions 'of this Agreement, the Redeveloper agrees to purchase the Redevelopment Property and if it constructs the Minimum Improvements on the Redevelopment Property, it will do so substantially in accordance with the Construction Plans. Should the Redeveloper construct the Minimum Improvements, it agrees to maintain, preserve and keep them in good repair and condition, subject to reasonable wear and tear and casualty excepted. Notwithstanding anything to the contrary set forth in this Agreement, the Redeveloper has no obligation to construct the Minimum Improvements. The Construction Plans must reasonably conform to the Preliminary Plans unless such nonconformity is approved by the City. The City agrees that it will promptly consider any proposed amendment to the Construction Plans, will not unreasonably withhold its approval of such proposed amendments and will approve the same if the amended plans: i) do not indicate a reduction in the Assessed Market Value of the Minimum Improvements; and ii) in the reasonable judgment of the City, such amendment is in conformity with the applicable land use regulations of the City. RHB-198514vi C. 130-66 4 Section 3.2. Reimbursement of Special Assessments. a) In order to facilitate the financial feasibility of the redevelopment of the Redevelopment Property and in consideration for the Redeveloper's fulfillment of its covenants and obligations under this Agreement, the City will provide to the Redeveloper public assistance in the form of payment of special assessments from the Available Tax Increments. The public assistance will be payable by the City only as indicated in this section 3.2. b) Subject to the provisions of this Agreement, the City agrees to provide a write-off of special assessments presently assessed or to be assessed against the Redevelopment Property for public improvements in the amount of $84,399.00. In each year commencing with the. year 2003 and ending in the year 2005, the City shall pay all of the Available Tax Increment to the Redeveloper up to the amount needed to reimburse the Developer for all the special assessments payable that year; Available Tax Increment for any such years in excess of said amount will be paid to Redeveloper to offset any deficiency of Available Tax Increment in any other such years but only up to the total aggregate of $84,399.00. For the purposes of this section, costs which are eligible for Special Assessment Write-Off treatment include: i) the actual assessable cost of public improvements constructed by the City and benefiting the Redevelopment Property and ii) the amount (as approved by the City) of improvements constructed or funded by the Redeveloper which benefit the Redevelopment Property which would have been considered assessable public improvements if constructed by the City. Section 3.3. Business Subsidy Agreement. The provisions of this Section constitute the "business subsidy agreement" for the purposes of the Business SubSidy Act. (a) General Terms. The parties agree and represent to each other as follows: The subsidy provided to the Redeveloper involves use of tax increment for the payment of special assessments levied against the Redevelopment Property as more fully described elsewhere in this Agreement. The subsidy has a value of $84,399.00. (2) The public purposes for the subsidy are as described in the Development District Program for the District. (3) The goals for the subsidy are: to secure development of the Minimum Improvements on the Redevelopment Property; to maintain such improvements for at least 5 years as described in clause (6) below; and to create the jobs and wage levels in accordance with Section 3.3 (b) hereof. (4) If the goals described in clause (3) are not met, the Redeveloper must make the payments to the City described in Section 3.3 (c) (5) The subsidy is needed because land acquisition costs, and the cost of public improvements assessed against the Redevelopment Property, make development of the Minimum Improvements financially infeasible without public assistance, all as determined by the City upon approval of the TIF Plan. RHB- 198514v 1 CH130-66 (6) The Redeveloper must continue operation of the Minimum Improvements for at least five years after the date of issuance of the certificate of completion. (7) The Redeveloper does not have a parent corporation. (8) The Redeveloper has not received, and does not expect to receive, financial assistance from any other "grantor" as defined in the Business Subsidy Act, in connection with the Redevelopment Property or the Minimum Improvements. (b) Job and Wage Goals. Within two years after the date on which the Redeveloper first receives assistance under this Agreement (the "Compliance Date"), the Redeveloper shall cause to be created or employed as the Redevelopment Property at least two new full-time equivalent jobs on the Redevelopment Property (excluding any jobs previously existing in the State as of the date of this Agreement and relocated to this site) and shall cause the annual wages of the two new employees on the Redevelopment Property to be no less than $80,000, exclusive of benefits. Notwithstanding anything to the contrary herein, if the wage and job goals described in this paragraph are met by the Compliance Date, those goals are deemed satisfied despite the Redeveloper's continuing obligations under sections 3.3 (a)(6) and 3.3 (d). The City may, after a public hearing, extend the Compliance Date by up to a year, provided that nothing in this Section will be construed to limit.the City's legislative discretion regarding this matter. The wage and jobs goals stated in this section 3.3 (b) need only be met one time before the Compliance Date. (c) Remedies. If the Redeveloper fails to meet the goals described in Section 3.3 (a)(3), the Redeveloper shall repay to the City upon written demand from the City (a) a "pro rata share" of the amount of subsidy expended by the City to write down the cost of the Redevelopment Property and to write-off special assessments against the Redevelopment Property. The term "pro rata share" means percentages calculated as follows: (i) if the failure relates to the number of jobs, the jobs required less the jobs created, divided by the jobs required; (ii) if the failure relates to wages, the number of jobs required less the number of jobs that meet the required wages, divided by the number of jobs required; (iii) if the failure relates to maintenance of the facility in accordance with Section 3.3 (a)(6), 60 less the number of months of operation as the required facility (where any month in which the facility is in operation for at least 15 days constitutes a month of operation), commencing on the date of the certificate of completion and ending with the date the facility ceases to be so operated as determined by the City, divided by 60; and (iv) if any more than one of clauses (I) through (iii) apply, the sum of the applicable percentages, not to exceed 100%. RHB- 198514v 1 CH130-66 Nothing is this section shall be construed to limit the City's remedies otherwise available to it under this contract. In addition to the remedy described in this Section and any other remedies available to the City for failure to meet the goals stated in Section 3.3 (a)(3), the Redeveloper agrees and understands that it may not receive a business subsidy from the City or any grantor (as defined in the Business Subsidy Act) for a period of five years from the date of the failure or until the Redeveloper satisfies its repayment obligations under this Section, whichever occurs first. (d) Reports. The Redeveloper must submit to the City a written report regarding business subsidy goals and results by no later than March 1 of each year, commencing March 1, 2003 and continuing until the later of (i) the date the goals stated in Section 3.3 (a)(3) are met; (ii) 30 days after expiration of the five-year period described in Section 3.3 (a)(6); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 3.3 (c). The report must comply with Section 116J.994, subdivision 7 of the Business Subsidy Act. The City will provide information to the Redeveloper regarding the required forms. If the Redeveloper fails to timely file any report required under this section, the City will mail the Redeveloper a warning within one week after the required filing date. If, after 14 days of the postmarked date of the warning, the Redeveloper fails to provide a report, the Redeveloper must pay the City a penalty of $100 for each subsequent day until the report is filed. The maximum aggregate penalty payable under this section is $1,000. Section 3.4. No Representation Regarding Available Tax Increment. The City's financial commitment under this Agreement regarding reimbursement of the special assessments is a revenue obligation only and will be paid by the City only after sufficient Tax Increment has been received by the City to fully pay the special assessments. The City makes no representations or warranties that the Available Tax Increment will be sufficient to reimburse the Redeveloper for the special assessments. The Redeveloper acknowledges that Available Tax Increment is subject to calculations by the County and changes in State law, including proposals to modify the property tax system regarding financing of public education which may be enacted by the Minnesota legislature in 2001. Some or all of the reimbursement may not be made prior to the Termination Date due to insufficient Available Tax Increment. The Redeveloper also acknowledges that the estimates of Available Tax Increment which may have been made by the City or its agents, officers or employees are estimates only and are not intended for reliance by the Redeveloper. ARTICLE IV Tax Increment Section 4.1. Tax Increment Certification. The City has established the Tax Increment District pursuant to the Tax Increment Act. Section 4.2. Real Property Taxes; Special Assessments. The Redeveloper shall pay all ad valorem taxes and special assessments on the Redevelopment Property. Section 4.3. Assessment Agreement. At closing, and as a precondition to the City's obligations, the parties shall execute the Assessment Agreement and the City shall secure the Assessor's Certification, all in substantially the form of the attached Schedule B. At the time of execution, the instrument must have been executed by the county assessor. Subsequent to execution by the parties, the instrument shall be recorded as provided for in the instrument. The Redeveloper shall not cause the Redevelopment Property to be removed from the public tax rolls or to become exempt from RHB-198514vl CH130-66 7 assessment for general real estate taxes by reason of any conveyance, lease, abatement or other action until the Termination Date. ARTICLE V Additional Provisions Section 5.1. Equal Employment Opportunity. The Redeveloper, for itself and its successors and assigns, agrees that in the event the Minimum Improvements are constructed as provided for in the Agreement, it will comply with all applicable federal, state and local equal employment and nondiscrimination laws and regulations. Section 5.2. Restrictions on Use. The Redeveloper agrees for itself, and its successors and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and assigns, shall devote the Redevelopment Property to, and only to and in accordance with, the land use regulations of the City of Chanhassen in effect on the date of the issuance of a building permit for construction of Minimum Improvements as the same may be amended from time to time. Section 5.3. Soil Conditions. The Redeveloper acknowledges that the'City makes no representations or warranties as to the condition-of the soils on the Redevelopment .Property or its fitness for construction of the Minimum Improvements or any other purpose 'for which the Redeveloper may make use of such property. The Redeveloper further agrees that it will indemnify, defend, and hold harmless the City, its governing body members, Officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the Redevelopment Property, unless resulting from any actions of the City or its agents. Section 5.4. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement or the deed by either party to the other shall be sufficiently given or delivered only if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) in the case of the Redeveloper, is addressed to or delivered to the Redeveloper at 6035 Parkland Boulevard, Cleveland, Ohio 44124-4141, Attn: ; and (b) in the case of the City, is addressed to or delivered personally to the City at 690 City Center Drive, Box 147, Chanhassen, Minnesota 55317, or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 5.5. Disclaimer of Relationships. The Redeveloper acknowledges that nothing contained in this Agreement nor any act by the City or the Redeveloper shall be deemed or construed by the Redeveloper or by any third person to create any relationship of third-party beneficiary, principal and agent, limited or general partner, or joint venture between the City and the Redeveloper. Section 5.6. Covenants Running with the Land. The terms and provisions of this Agreement shall be deemed to be covenants running with the Redevelopment Property and shall be RHB- 198514v 1 CH130-66 8 binding upon any successors or assigns of the Redeveloper and any future owners or encumbrances of the Redevelopment Property but shall terminate and be of no further effect on the Redevelopment Property after the Termination Date. Section 5.7. Modifications. This Agreement may be modified solely through written amendments hereto executed by the Redeveloper and the City. Section 5.8. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 5.9. Assignment. The Redeveloper may at any time that it is not in default under this Agreement assign its rights and obligations hereunder to another entity which is acceptable to the City in its reasonable discretion. The assignment must be evidenced by an instrument in recordable form and acceptable to the City whereby the Redeveloper assigns and the assignee accepts all of the Redeveloper's rights and obligations hereunder. Section 5.10. Subordination. The City agrees to subordinate its fights and interest under this Agreement upon written request by the Redeveloper to any mortgagee providing financing for construction of the Minimum Improvements or acquisition of the Redevelopment Property. Notwithstanding anything herein to the contrary, the City does not agree to subordinate its rights under the Assessment Agreement. RHB-198514vl CH130-66 9 IN WITNESS WHEREOF, the City has caused this Agreement to be executed in its corporate name by its duly authorized officers and sealed with its corporate seal; and the Redeveloper has caused this Agreement to be executed in its corporate name as of the date first above written. THE CITY OF CHANHASSEN, MINNESOTA (SEAL) By Linda C. Jansen Its Mayor And Todd Gerhardt Its Acting City Manager STATE OF MINNESOTA COUNTY OF On this ~. day of ,2001, before me, a Notary Public within and for said county, appeared Linda C. Jansen and Todd Gerhardt, to me personally known, who being by me duly sworn, did say that they are respectively the Mayor and Acting-City Manager of the City of Chanhassen, Minnesota, a municipal cOrporation under the laws of the State of Minnesota, on' behalf of the corporation. Notary Public RHB- 198514v 1 CH130-66 10 REDEVELOPER: PARKER HANNIFIN CORPORATION By Its By STATE OF MINNESOTA COUNTY OF The foregoing instrument was acknowledged before me this 2001, by , the Parker Hannifin Corporation, on behalf of said corporation. day of Notary Public RHB- 198514v 1 CH 130456 1 1 SCHEDULE A to CONTRACT FOR PRIVATE REDEVELOPMENT REDEVELOPMENT PROPERTY !JEGAL DESCRIFFION: Lot 2, Block 1, Arboretum Business Park 2nd Addition RHB-198514vi c~3o-66 A-1 SCHEDULE B Form Of ASSESSMENT AGREEMENT and ASSESSOR'S CERTIFICATION By and among THE CITY OF CHANHASSEN and PARKER HANNIFIN CORPORATION and CARVER COUNTY ASSESSOR This Document was drafted by: KENNEDY & GRAVEN, CHARTERED (RHB) 470 Pillsbury Center Minneapolis, Minnesota 55402 RHB-198514vl CH130-66 B-1 THIS ASSESSMENT AGREEMENT, dated as of this ~ day of ,2001, by and between the City of Chanhassen, a Minnesota municipal corporation (the "City") and Parker Hannifin Corporation (the "Redeveloper"). WlTNESSETH: WHEREAS, on or before the date hereof the City and Redeveloper have entered into a Contract for Private Redevelopment (the "Contract") regarding certain real property located in the County of Carver, pursuant to which the City is to acquire certain property, hereinafter referred to as the Redevelopment Property and legally described in Attachment A hereto; and WHEREAS, it is contemplated that pursuant to said Contract the Redeveloper will construct a 32,000 square foot office/warehouse facility upon the Redevelopment Property; and WHEREAS, the City and Redeveloper desire to establish a minimum market value for said land and the improvements to be constructed thereon, pursuant to Minnesota Statutes Section 469.177, Subdivision 8; and WHEREAS, the City and the County Assessor for Carver County, have reviewed the preliminary plans and specifications for the improvements which it is contemplated will be erected~ NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. The minimum market value which shall be assessed for the separate parcel described in Attachment A, with the Minimum Improvements and other improvements constructed thereon shall upon substantial completion be not less than $1,120,000. The parties to this Agreement expect that the construction of the above-referenced improvements will be entirely completed on or before December 31, 2001. 2. The minimum market value herein established remains in full force and effect until the Termination Date defined in Article I of the Contract, at which time this Agreement shall- terminate and the City shall provide the Redeveloper with a release in recordable form. 3. This Agreement shall be promptly recorded against each parcel by the Redeveloper with a copy of Minnesota Statutes Section 469.177, Subdivision 8, set forth in Attachment B hereto. The Redeveloper shall pay all costs of recording. 4. Neither the preambles nor provisions of this Agreement are intended to, nor shall they be construed as, modifying the terms of the Contract between the City and the Redeveloper. No provision of this Assessment Agreement shall prevent he Redeveloper from appealing assessed values in excess of $1,120,000. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. RHB-198514vl cI~3o-66 B-2 (SEAL) CITY OF CHANHASSEN, MINNESOTA By And Linda C. Jansen Its Mayor Todd Gerhardt Its Acting City Manager STATE OFMINNESOTA COUNTY OF On this ~ day of ,2001, before me, a Notary Public within and for said county, appeared Linda C. Jansen and Todd Gerhardt, to me personally known, who being by me duly sworn, did say that they are respectively the Mayor and Acting City Manager of the City of Chanhassen, Minnesota, a municipal corporation under the laws of the State of Minnesota, on behalf of the corporation. Notary Public RHB-198514vl CH130~66 B-3 REDEVELOPER: PARKER HANNIFIN CORPORATION By Its By STATE OFMINNESOTA COUNTY OF The foregoing instrument was acknowledged before me this 2001, by , the Hannifin Corporation, on behalf of corporation. day of of Parker Notary Public RHB-198514vl CH130-66 B-4 CERTIFICATION BY COUNTY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the minimum market value assigned to the land upon which the improvements are to be constructed, and being of the opinion that the minimum market value contained in the foregoing Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the above described property, hereby certifies that the minimum market value assigned to such land and improvements commencing on December 31, 2001 (to be calculated on January 2, 2002) shall not be less than $1,120,000 until termination of this Agreement. Assessor for Carver County, Minnesota STATE OF MINNESOTA COUNTY OF CARVER ) ) ss ) The foregoing instrument was acknowledged before me this day of 2001, by , the County Assessor for Carver County, Minnesota. Notary Public RHB-198514v 1 CH130-66 B-5 ATTACHMENT A Legal Description of Land REDEVELOPMENT PROPERTY: Lot 2, Block 1, Arboretum Business Park 2nd Addition RHB-198514vl CH 130-66 B-6 ATTACHMENT B Section 469.177, Subd. 8. Assessment agreements. An authority may, upon entering into a development or redevelopment agreement pursuant to section 469.176, subdivision 5, enter into a written assessment agreement in recordable form with the developer or redeveloper of property within the tax increment financing district which establishes a minimum market value of the land and completed improvements to be constructed thereon until a specified termination date, which date shall be not later than the date upon which tax increment will no longer be remitted to the authority pursuant to section 469.176, subdivision 1. The assessment agreement shall be presented to the county assessor, or city assessor having the powers of the county assessor, of the jurisdiction in which the tax increment financing district is located. The assessor shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, shall execute the following certification upon such agreement: The undersigned assessor, being legally responsible for the assessment of the above- described property upon completion of the improvements to be constructed thereon, hereby certifies that the market value assigned to such land and improvements upon completion shall not be less than $1,120,000. Upon transfer of title of the land to be developed or redeveloped from the authority to the developer or redeveloper, such assessment agreement, together with a copy of this subdivision, shall be filed for record and recorded in the office of the county recorder or filed in the office of the registrar of titles of the county where the real estate or any part thereof is situated. Upon completion of the improvements by the developer or redeveloper, the assessor shall value the property pursuant to section 273.11, except that the market value assigned thereto shall not be less than the minimum market value contained in the assessment agreement. Nothing herein shall limit the discretion of the assessor to assign a market value to the property in excess of the minimum market value contained in the assessment agreement nor prohibit the developer or redeveloper from seeking, through the exercise of administrative and legal remedies, a reduction in market value for property tax purposes; provided, however, that the developer or redeveloper shall not seek, nor shall the city assessor, the county assessor, the county auditor, any board of review, any board of equalization, the commissioner of revenue or any court of this state grant a reduction of the market value below the minimum market value contained in the assessment agreement during the term of the agreement filed of record regardless of actual market values which may result from incomplete construction of improvements, destruction or diminution by any cause, insured or uninsured, except in the case of acquisition or reacquisition of the property by a public entity. Recording or filing of an assessment agreement complying with the terms of this subdivision shall constitute notice of the agreement to any subsequent purchaser or encumbrancer of the land or any part thereof, whether voluntary or involuntary, and shall be binding upon them. RHB-198514vl cm30-6~ B-7 SCHEDULE C Form of Limited Revenue Tax Increment Note $84,399.00 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF CARVER THE CITY OF CHANHASSEN LIMITED REVENUE TAX INCREMENT NOTE The City of Chanhassen (the "City"), hereby acknowledges itself to be indebted and, for value received, promises to pay to the order of Parker Hannifin Corporation or its assigns ("Redeveloper"), solely from the Available Tax Increment generated by the Redevelopment Property described in Exhibit B hereto (the "Redevelopment Property") and Minimum Improvements located on such parcel, to the extent and in the manner hereinafter provided, the amount of this Note, being $84,399.00, on the Payment Dates (as hereinafter defined) or such greater amount, if any, which the City is required to pay in accordance with the terms of this Note. Each payment on this Note is payable without interest and inany coin or currency of the United' States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to Redeveloper and mailed to Redeveloper at its postal address within the United States which shall be designated from time to time by Redeveloper. The Note is a special and limited obligation and not a general obligation of the City, which has been issued by the City to aid in financing a "project", as defined in Minnesota Statutes Section 469.174, of the City consisting generally of defraying certain capital and administration costs incurred and to be incurred by the City within and for the benefit of its Redevelopment Project (the "project"), and Tax Increment Financing District (the "District"). EXCEPT AS TO THE OBLIGATION TO MAKE PAYMENTS FROM TAX INCREMENT, THE NOTE IS NOT A DEBT OF THE CITY OF CHANHASSEN, OR THE STATE OF MINNESOTA (THE "STATE"), AND NEITHER THE CITY OF CHANHASSEN, THE STATE NOR ANY POLITICAL SUBDIVISION THEREOF SHALL BE LIABLE ON ~ NOTE, NOR SHALL THE NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN AVAILABLE TAX INCREMENT, AS DEFINED BELOW. Any payments on this Note which are due on any Payment Date shall be payable solely from and only to the extent that the City shall have received as of such Payment Date "Available Tax Increment." For the purpose of this Note, "Available Tax Increment" means any Tax Increment generated as a result of real property taxes paid in the years 2003 through 2008 inclusive and received during the six (6) month period preceding a Payment Date, after deducting therefrom the following amounts: RHB- 198514v 1 CH 130-66 (i) any payment made to Redeveloper of amounts due hereunder with respect to C-1 previous Payment Dates, and (ii) any amounts needed to make payments to a school district pursuant to Minnesota Statutes, § 469.177, subd. 10; and (iii) any amounts required to make fiscal disparities contributions and school aid contributions. For the purposes of this Note, "Tax Increment" means the portion of the real property taxes generated with respect to the Redevelopment Property and Minimum Improvements constructed on the Redevelopment Property which is remitted to the City commencing in 2001 as Tax Increment pursuant to Minnesota Statutes § 469.174-469.179. For purposes of this Note, a "Payment Date" shall mean each of the Scheduled Payment Dates set forth on Exhibit A attached hereto, and each additional Payment Date required in connection with any extension of the term of this Note as set forth below, because of changes made in Minnesota Statutes §§ 469.174-469.179. Notwithstanding anything to the contrary in this Note, on each of the Payment Dates, the City shall pay to Redeveloper all of the Available Tax Increment up to the amount of the Scheduled Payment; but in no event shall the aggregate of all such payments be in excess of $84,399.00. To the extent that on any Payment Date the City is unable to make a payment from Available Tax Increment equal to the Scheduled Payment due on such date as a result of having received, as of such date, insufficient Available Tax Increment, such failure shall not constitute a default under this Note and, except as provided below, the City shall have no obligation under this Note, or otherwise, to subsequently pay any such deficiency. If, and only if, on any Payment Date there is insufficient Available Tax Increment to make the Scheduled Payment due on such date and such insufficiency is a result of changes made in Minnesota Statutes §§ 469.174-469.179 subsequent to the date of the Contract for Private Redevelopment dated between the City and Redeveloper (the "Redevelopment Contract"), the amount of such deficiency in the Scheduled Payment shall be deferred and shall be paid on the next Payment Date on which the City has Available Tax Increment in excess of the amount necessary to make the Scheduled Payment due on such Payment Date, and if such deficiency has not been paid in full by the final Scheduled Payment Date set forth on Exhibit A attached hereto, the Note shall nonetheless terminate and the City shall have no obligation to make payment of such deficiencies. This Note shall not be payable from or constitute a charge upon any funds of the City of Chanhassen, and the City shall not be subject to any liability hereon or be deemed to have obligated itself to pay hereon from any funds except the Available Tax Increment, and then only to the extent and in the manner herein specified. Redeveloper shall never have or be deemed to have the fight to compel any exercise of any taxing power of the City or of any other public body, and neither the City nor any council member, officer, employee or agent of the City, nor any person executing or registering this Note shall be liable personally hereon by reason of the issuance or registration hereof or otherwise. This Note shall not be transferable or assignable, in whole or in part, by Redeveloper without the prior written consent of the City. RHB-198514vl CH130-66 C-2 This Note is given subject to the limitation contained in Section 5.4 of the Redevelopment Contract. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the city council of the City of Chanhassen has caused this Note to be executed by the manual signatures of the Mayor and the City Manager of the City and has caused this Note to be dated as of Linda C. Jansen, Mayor Todd Gerhardt, Acting City Manager RHB-198514vl c~3o-66 C-3 EXHIBIT A Scheduled Payment Dates and Amounts of Scheduled Payments Scheduled Payment Dates July 31, 2003 December 31, 2003 July 31, 2004 December 31, 2004 July 31, 2005 December 31, 2005 Scheduled Payments* $14,066.50 $14,066.50 $14,066.50 $14,066.50 $14,066.50 $14,066o50 · Scheduled payments are to be made up to these amounts but only from Available Tax Increment. RHB-198514vl CH~O-~ C-4 EXHIBIT B Description of Redevelopment Property Lot 2, Block 1, Arboretum Business Park 2nd Addition RHB- 198514v 1 CH 130-66 C-5 SCHEDULE D LIST OF PRELIMINARY PLAN DOCUMENTS [to be completed] RHB-198514vl CH 130-66 D-1 DRAFI' 7.5.01 CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE CITY OF CHANHASSEN AND PARKER HANNIFIN CORPORATION This document was drafted by: KENNEDY & GRAVEN, CHARTERED (RHB) 470 Pillsbury Center 200 South Sixth Street Minneapolis, MN 55402 RHB-198514vl CH130-66 Section 1.1. Section 2.1. Section 2.2. Section 3.1. Section 3.2. Section 3.3. Section 3.4. Section 4.1. Section 4.2. Section 4.3. Section 5.1. Section 5.2. Section 5.3. Section 5.4. Section 5.5. Section 5.6. Section 5.7. Section 5.8. Section 5.9. Section 5.10. TABLE OF CONTENTS ARTICLE I Definitions Definitions ........................................................................................................ 2 ARTICLE II Representations and Warranties Representations by the City .............................................................................. 3 Representations by the Redeveloper ................................................................ 3 ARTICLE III Public Assistance Construction of the Minimum Improvements ................................................. 4 Reimbursement of Special Assessments .......................................................... 5 Business Subsidy Agreement ........................................................................... 5 No Representation Regarding Available Tax Increment ................................. 7 ARTICLE IV Tax Increment Tax Increment Certification ............................................................................. 7 Real Property Taxes; Special Assessments ...................................................... 7 Assessment Agreement .................................................................................... 7 ARTICLE V Additional Provisions Equal Employment Opportunity ...................................................................... 8 Restrictions on Use ........................................................................................... 8 Soil Conditions ................................................................................................. 8 Notices and Demands ....................................................................................... 8 Disclaimer of Relationships ............................................................................. 8 Covenants Running with the Land ................................................................... 8 Modifications .................................................................................................... 9 Counterparts ..................................................................................................... 9 Assignment ....................................................................................................... 9 Subordination ................................................................................................... 9 SIGNATURES TESTIMONIALS RHB-198514vl CH 130-6,6 SCHEDUI JE A SCHED~.E B SCHEDULE C SCHEDULE D REDEVELOPMENT PROPERTY LEGAL DESCRIPTION ASSESSMENT AGREEMENT AND ASSESSOR'S CERTIFICATION FORM OF LIMITED REVENUE NOTE LIST OF PRELIM/NARY PLAN DOCUMENTS RHB-198514vi CH 130-66 CONTRACT FOR PRIVATE REDEVELOPMENT THIS AGREEMENT, made on or as of the day of ,2001, by and between the City of Chanhassen, a Minnesota municipal corporation (hereinafter referred to as the "City") and Parker Hannifin Corporation (hereinafter referred to as the "Redeveloper"), WITNESSETH: WHEREAS, the City has created and established Development District No. 6, (the "District") pursuant to Minnesota Statutes, §§ 469.124 through 469.154 (the "Act") and has created within the District, Tax Increment Financing District No. 6-1, (the "Tax Increment District") also pursuant to the Act; and WHEREAS, the City has further adopted its development district program (the "Program") for the District describing the objectives of the Program and the public assistance needed within the District to carry out the objectives of the Program; and WHEREAS, there has been presented by the Redeveloper to the City for its consideration a proposal for the development of a facility within the District on property located within the Tax Increment District; and WHEREAS, the City has reviewed the Redeveloper's development proposal and has determined that the development, if completed, would serve to accomplish the objectives of the Program. WHEREAS, in order to achieve the objectives of the Program the City has determined to provide aid and assistance to the Redevelopment Property by utilizing tax increment generated from the Redevelopment Property to reduce the special assessments levied to finance the public improvements in the District. WHEREAS, the City intends to fund the special assessment assistance and other redevelopment costs by using tax increments generated from the Redevelopment Property and the Minimum Improvements to be constructed thereon; and WHEREAS, the City believes that the redevelopment of the District pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable state and local laws and requirements under which the Program has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: RHB-198514vl CH 130-66 1 ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 469.001-469.047 (formerly Municipal Housing and Redevelopment Act, Minnesota Statutes, Sections 462.411-462.711), as amended. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Assessed Market Value" or "Assessed Market Valuation" means the market value of real property as determined by the county assessor of the county in accordance with Minnesota Statutes, Section 273.11 (or as finally adjusted by the assessor, board of equalization, commissioner of revenue, or any court). "Assessment Agreement" means the agreement in the form attached hereto as Schedule B among the Redeveloper, the City and the county assessor, which establishes a minimiam Assessed Market Value for the Redevelopment Property and the Minimum Improvements. "Available Tax Increment" means any Tax Increment remitted to the City in the years 2003 through 2008 inclusive after first deducting therefrom: (i) payments previously made pursuant to section 4.2 of this Agreement; and (ii) any amounts needed to make payments to a school district pursuant to Minnesota Statutes, § 469.177, subd. 10. "Business Subsidy Act" means Minnesota Statutes, Sections 116J.993 through 116J.995. "City" means the City of Chanhassen, a Minnesota municipal corporation and statutory city according to the laws of the State of Minnesota. "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by the Redeveloper on the Redevelopment Property which shall be at least as detailed as the plans required to be submitted to the building inspector of the City. "County" means Carver County, Minnesota. "Limited Revenue Tax Increment Note" or "Note" means the limited revenue obligation of the City to pay the Redeveloper out of Available Tax Increment, the form of which is attached hereto as Schedule C. "Minimum Improvements" means the improvements described in the Preliminary Plans containing an office/warehouse facility of approximately 32,000 square feet. "Preliminary Plans" means those plan sheets and other descriptive material which are identified in the attached Schedule D. RHB-198514vl CH130-66 2 "Redeveloper" means Parker Hannifin Corporation,, or its successors and assigns. "Redevelopment Property" means the real property, a legal description of which property is contained on the attached Schedule A. "Tax Increment" means that portion of the real property taxes paid with respect to the Redevelopment Property which is remitted to the City as tax increment pursuant to the Tax Increment Act. ''Tax Increment Act" means Minnesota Statutes, Sections 469.174-. 179, as the same may be amended from time to time. "Termination Date" means the date when the City has paid the full amount due under the terms of this Agreement and the Limited Revenue Tax Increment Note. '`Tax Official" means any city or county assessor; county auditor; city, county or state board of equalization, the commissioner of revenue of the state, any state or federal district court, the tax court of the state, or the State Supreme Court. "Unavoidable Delays" means delays which are the direct result of acts of God, unforeseen adverse weather conditions, labor disputes, fire or other casualty to the Minimum Improvements, . litigation commenced by third parties which, by injunction or other similar judicial action causes delays, acts of any federal, state or local governmental unit (other than the City in enforcing its rights under this Agreement), City defaults as to the Redeveloper's delays, Redeveloper defaults as to the City's delays, or other matters which are not within the control of the Redeveloper as to the Redeveloper's delays or not within the control of the City as to the City's delays. ARTICLE II Representations and Warranties Section 2.1. Representations by the City. The City makes the following representations as the basis for the undertaking on its part herein contained: (a) The City has the fight, power and authority to execute, deliver and perform its obligations according to this Agreement and all other documents to be executed by the City pursuant hereto. The City assures the Redeveloper that the individuals who execute this Agreement and all other documents executed by the City or on behalf of the City are duly authorized to sign the same on behalf of the City and to bind the City thereto. Section 2.2. Representations by the Redeveloper. The Redeveloper represents that: (a) The Redeveloper has the right, power and authority to execute, deliver and perform its obligations according to this Agreement. (b) If the Redeveloper constructs the Minimum Improvements on the Redevelopment Property, it will do so in accordance with the terms of this Agreement, and all local, state and federal laws and zoning, building code and public health laws and regulations. RHB-198514vl CH130-66 3 (c) If constructed, the Minimum Improvements will have an Assessed Market Value of not less than $1,120,000 inclusive of the value of the Redevelopment Property. (d) As of this date, the Redeveloper has received no notice or communication from any local, state or federal official that the activities of the Redeveloper or the City in the Project Area may be or will be in violation of any environmental law or regulation. The Redeveloper is aware of no facts the existence of which would cause it to be in violation of any local, state or federal environmental law, regulation or review procedure. In the event that the City is required to take any action to obtain any necessary permits or approvals with respect to the Redevelopment Property under any local, state or federal environmental law or regulation, the Redeveloper will cooperate with the City in connection with such action. (e) If the Redeveloper constructs the Minimum Improvements, it will use its best efforts to do so in accordance with all applicable local, state or federal energy conservation laws or regulations. (f) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of any evidences of indebtedness, agreement or instrument of whatever nature to which the Redeveloper is now a party or by which it is bound, or constitutes a default under any of the foregoing. (g) The Redeveloper would not be willing to construct the Minimum Improvements but for the commitment by the City to grant financial assistance as outlined in this Agreement and the use of tax increment for such assistance is essential to the Redeveloper's ability to carry out its obligations under this Agreement. ARTICLE III Public Assistance Section 3.1. Construction of the Minimum Improvements. Subject to the terms and conditions of this Agreement, the Redeveloper agrees to purchase the Redevelopment Property and if it constructs the Minimum Improvements on the Redevelopment Property, it will do so substantially in accordance with the Construction Plans. Should the Redeveloper construct the Minimum Improvements, it agrees to maintain, preserve and keep them in good repair and condition, subject to reasonable wear and tear and casualty excepted. Notwithstanding anything to the contrary set forth in this Agreement, the Redeveloper has no obligation to construct the Minimum Improvements. The Construction Plans must reasonably conform to the Preliminary Plans unless such nonconformity is approved by the City. The City agrees that it will promptly consider any proposed amendment to the Construction Plans, will not unreasonably withhold its approval of such proposed amendments and will approve the same if the amended plans: i) do not indicate a reduction in the Assessed Market Value of the Minimum Improvements; and ii) in the reasonable judgment of the City, such amendment is in conformity with the applicable land use regulations of the City. RHB- 198514v 1 CH130-66 4 Section 3.2. Reimbursement of Special Assessments. a) In order to facilitate the financial feasibility of the redevelopment of the Redevelopment Property and in consideration for the Redeveloper's fulfillment of its covenants and obligations under this Agreement, the City will provide to the Redeveloper public assistance in the form of payment of special assessments from the Available Tax Increments. The public assistance will be payable by the City only as indicated in this section 3.2. b) Subject to the provisions of this Agreement, the City agrees to provide a w~e-off of special assessments presently assessed or to be assessed against the Redevelopment Property for public improvements in the amount of $84,399.00. In each year commencing with the year 2003 and ending in the year 2005, the City shall pay all of the Available Tax Increment to the Redeveloper up to the amount needed to reimburse the Developer for all the special assessments payable that year; Available Tax Increment for any such years in excess of said amount will be paid to Redeveloper to offset any deficiency of Available Tax Increment in any other such years but only up to the total aggregate of $84,399.00. For the purposes of this section, costs which are eligible for Special Assessment Write-Off treatment include: i) the actual assessable cost of public improvements constructed by the City and benefiting the Redevelopment Property and ii) the amount (as approved by the City) of improvements constructed or funded by the Redeveloper which benefit the Redevelopment Property which would have been considered assessable public improvements if constructed by the City. Section 3.3. Business Subsidy Agreement. The provisions of this Section constitute the "business subsidy agreement" for the purposes of the Business Subsidy Act. (a) General Terms. The parties agree and represent to each other as follows: (1) The subsidy provided to the Redeveloper involves use of tax increment for the payment of special assessments levied against the Redevelopment Property as more fully described elsewhere in this Agreement. The subsidy has a value of $84,399.00. (2) The public purposes for the subsidy are as described in the Development District Program for the District. (3) The goals for the subsidy are: to secure development of the Minimum Improvements on the Redevelopment Property; to maintain such improvements for at least 5 years as described in clause (6) below; and to create the jobs and wage levels in accordance with Section 3.3 (b) hereof. (4) If the goals described in clause (3) are not met, the Redeveloper must make the payments to the City described in Section 3.3 (c) (5) The subsidy is needed because land acquisition costs, and the cost of public improvements assessed against the Redevelopment Property, make development of the Minimum Improvements financially infeasible without public assistance, all as determined by the City upon approval of the TIF Plan. RHB- 198514v 1 CH 130-66 (6) The Redeveloper must continue operation of the Minimum Improvements for at least five years after the date of issuance of the certificate of completion. (7) The Redeveloper does not have a parent corporation. (8) The Redeveloper has not received, and does not expect to receive, financial assistance from any other "grantor" as defined in the Business Subsidy Act, in connection with the Redevelopment Property or the Minimum Improvements. (b) Job and Wage Goals. Within two years after the date on which the Redeveloper first receives assistance under this Agreement (the "Compliance Date"), the Redeveloper shall cause to be created or employed as the Redevelopment Property at least two new full-time equivalent jobs on the Redevelopment Property (excluding any jobs previously existing in the State as of the date of this Agreement and relocated to this site) and shall cause the annual wages of the two new employees on the Redevelopment Property to be no less than $80,000, exclusive of benefits. Notwithstanding anything to the contrary herein, if the wage and job goals described in this paragraph are met by the Compliance Date, those goals are deemed satisfied despite the Redeveloper's continuing obligations under sections 3.3 (a)(6) and 3.3 (d). The City may, after a public hearing, extend the Compliance Date by up to a year, provided that nothing in this Section will be construed to limit the City's legislative discretion regarding this matter. The wage and jobs goals stated in this section 3.3 (b) need only be met one time before the Compliance Date. (c) Remedies. If the Redeveloper fails to meet the goals described in Section 3.3 (a)(3), the Redeveloper shall repay to the City upon written demand from the City (a) a "pro rata share" of the amount of subsidy expended by the City to write down the cost of the Redevelopment Property and to write-off special assessments against the Redevelopment Property. The term "pro rata share" means percentages calculated as follows: (i) if the failure relates to the number of jobs, the jobs required less the jobs created, divided by the jobs required; (ii) if the failure relates to wages, the number of jobs required less the number of jobs that meet the required wages, divided by the number of jobs required; (iii) if the failure relates to maintenance of the facility in accordance with Section 3.3 (a)(6), 60 less the number of months of operation as the required facility (where any month in which the facility is in operation for at least 15 days constitutes a month of operation), commencing on the date of the certificate of completion and ending with the date the facility ceases to be so operated as determined by the City, divided by 60; and (iv) if any more than one of clauses (I) through (iii) apply, the sum of the applicable percentages, not to exceed 100%. RHB-198514vl CH 130-66 Nothing is this section shall be construed to limit the City's remedies otherwise available to it under this contract. In addition to the remedy described in this Section and any other remedies available to the City for failure to meet the goals stated in Section 3.3 (a)(3), the Redeveloper agrees and understands that it may not receive a business subsidy from the City or any grantor (as defined in the Business Subsidy Act) for a period of five years from the date of the failure or until the Redeveloper satisfies its repayment obligations under this Section, whichever occurs first. (d) Reports. The Redeveloper must submit to the City a written report regarding business subsidy goals and results by no later than March 1 of each year, commencing March 1, 2003 and continuing until the later of (i) the date the goals stated in Section 3.3 (a)(3) are met; (ii) 30 days after expiration of the five-year period described in Section 3.3 (a)(6); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 3.3 (c). The report must comply with Section 116J.994, subdivision 7 of the Business Subsidy Act. The City will provide information to the Redeveloper regarding the required forms. If the Redeveloper fails to timely file any report required under this section, the City will mail the Redeveloper a warning within one week after the required filing date. If, after 14 days of the postmarked date of the warning, the Redeveloper fails to provide a report, the Redeveloper must pay the City a penalty of $100 for each subsequent day until the report is filed. The maximum aggregate penalty payable under this section is $1,000. Section 3.4. No Representation Regarding Available Tax Increment. The City's financial commitment under this Agreement regarding reimbursement of the special assessments is a revenue obligation only and will be paid by the City only after sufficient Tax Increment has been received by the City to fully pay the special assessments. The City makes no representations or warranties that the Available Tax Increment Will be sufficient to reimburse the Redeveloper for the special assessments. The Redeveloper acknowledges that Available Tax Increment is subject to calculations by the County and changes in State law, including proposals to modify the property tax system regarding financing of public education which may be enacted by the Minnesota legislature in 2001. Some or all of the reimbursement may not be made prior to the Termination Date due to insufficient Available Tax Increment. The Redeveloper also acknowledges that the estimates of Available Tax Increment which may have been made by the City or its agents, officers or employees are estimates only and are not intended for reliance by the Redeveloper. ARTICLE IV Tax Increment Section 4.1. Tax Increment Certification. The City has established the Tax Increment District pursuant to the Tax Increment Act. Section 4.2. Real Property Taxes; Special Assessments. The Redeveloper shall pay all ad valorem taxes and special assessments on the Redevelopment Property. .Section 4.3. Assessment Agreement. At closing, and as a precondition to the City's obligations, the parties shall execute the Assessment Agreement and the City shall secure the Assessor's Certification, all in substantially the form of the attached Schedule B. At the time of execution, the instrument must have been executed by the county assessor. Subsequent to execution by the parties, the instrument shall be recorded as provided for in the instrument. The Redeveloper shall not cause the Redevelopment Property to be removed from the public tax rolls or to become exempt from RHB-198514vl CH130-66 7 assessment for general real estate taxes by reason of any conveyance, lease, abatement or other action until the Termination Date. ARTICLE V Additional Provisions Section 5.1. Equal Employment Opportunity. The Redeveloper, for itself and its successors and assigns, agrees that in the event the Minimum Improvements are constructed as provided for in the Agreement, it will comply with all applicable federal, state and local equal employment and nondiscrimination laws and regulations. Section 5.2. Restrictions on Use. The Redeveloper agrees for itself, and its successors and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and assigns, shall devote the Redevelopment Property to, and only to and in accordance with, the land use regulations of the City of Chanhassen in effect on the date of the issuance of a building permit for construction of Minimum Improvements as the same may be amended from time to time. Section 5.3. Soil Conditions. The Redeveloper acknowledges that the City makes no representations or warranties as to the condition of the soils on the Redevelopment Property or its fitness for construction of the Minimum Improvements or any other purpose for which the Redeveloper may make use of such property. The Redeveloper further agrees that it will indemnify, defend, and hold harmless the City, its governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the Redevelopment Property, unless resulting from any actions of the City or its agents. Section 5.4. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement or the deed by either party to the other shall be sufficiently given or delivered only if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) in the case of the Redeveloper, is addressed to or delivered to the Redeveloper at 6035 Parkland Boulevard, Cleveland, Ohio 44124-4141, Attn: ; and (b) in the case of the City, is addressed to or'delivered personally to the City at 690 City Center Drive, Box 147, Chanhassen, Minnesota 55317, or at such other address with respect to- either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 5.5. Disclaimer of Relationships. The Redeveloper acknowledges that nothing contained in this Agreement nor any act by the City or the Redeveloper shall be deemed or construed by the Redeveloper or by any third person to create any relationship of third-party beneficiary, principal and agent, limited or general partner, or joint venture between the City and the Redeveloper. Section 5.6. Covenants Running with the Land. The terms and provisions of this Agreement shall be deemed to be covenants running with the Redevelopment Property and shall be RHB-198514vl CH130-66 8 binding upon any successors or assigns of the Redeveloper and any future owners or encumbrances of the Redevelopment Property but shall terminate and be of no further effect on the Redevelopment Property after the Termination Date. Section 5.7. Modifications. This Agreement may be modified solely through written amendments hereto executed by the Redeveloper and the City. Section 5.8. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 5.9. Assignment. The Redeveloper may at any time that it is not in default under this Agreement assign its rights and obligations hereunder to another entity which is acceptable to the City in its reasonable discretion. The assignment must be evidenced by an instrument in recordable form and acceptable to the City whereby the Redeveloper assigns and the assignee accepts all of the Redeveloper's rights and obligations hereunder. Section 5.10. Subordination. The City agrees to subordinate its rights and interest under this Agreement upon written request by the Redeveloper to any mortgagee providing financing for construction of the Minimum Improvements or acquisition of the Redevelopment Property. Notwithstanding anything herein to the contrary, the City does not agree to subordinate its rights under the Assessment Agreement. RHB-198514vl CH130-66 9 IN WITNESS WHEREOF, the City has caused this Agreement to be executed in its corporate name by its duly authorized officers and sealed with its corporate seal; and the Redeveloper has caused this Agreement to be executed in its corporate name as of the date first above written. THE CITY OF CHANHASSEN, MINNESOTA (SEAL) By Linda C. Jansen Its Mayor STATE OF MINNESOTA COUNTY OF And Todd Gerhardt Its Acting City Manager On this ~ day of ,2001, before me, a Notary Public within and for Said county, appeared Linda C. Jansen and Todd Gerhardt, to me personally known, who being by me duly sworn, did say that they are respectively the Mayor and Acting City Manager of the City of Chanhassen, Minnesota, a municipal corporation under the laWs of the State of Minnesota, on behalf of the corporation. Notary Public RHB-198514vl CH 130-66 10 REDEVELOPER: PARKER HANN]FIN CORPORATION By Its By STATE OF MINNESOTA COUNTY OF The foregoing instrument was acknowledged before me this 2001, by , the Parker Hannifin Corporation, on behalf of said corporation, day of Notary Public RHB-198514vl CH130-66 11 SCHEDULE A to CONTRACT FOR PRIVATE REDEVELOPMENT REDEVELOPMENT PROPERTY LEGAL DESCRIPTION: Lot 2, Block 1, Arboretum Business Park 2nd Addition RHB-198514v 1 c~3o-c,6 A-1 SCHEDULE B Form Of ASSESSME~ AGREEMENT and ASSESSOR'S CERTIFICATION By and among THE CITY OF CHANHASSEN and PARKER HANNIFIN CORPORATION and CARVER COUNTY ASSESSOR This Document was drafted by: KENNEDY & GRAVEN, CHARTERED (RHB) 470 Pillsbury Center Minneapolis, Minnesota 55402 RHB-198514vi CH~O~ B-1 THIS ASSESSMENT AGREEMENT, dated as of this ~ day of ,2001, by and between the City of Chanhassen, a Minnesota municipal corporation (the "City") and Parker Hannifin Corporation (the "Redeveloper"). WlTNESSETH: WHEREAS, on or before the date hereof the City and Redeveloper have entered into a Contract for Private Redevelopment (the "Contract") regarding certain real property located in the County of Carver, pursuant to which the City is to acquire certain property, hereinafter referred to as the Redevelopment Property and legally described in Attachment A hereto; and WHEREAS, it is contemplated that pursuant to said Contract the Redeveloper will construct a 32,000 square foot office/warehouse facility upon the Redevelopment Property; and WHEREAS, the City and Redeveloper desire to establish a minimum market value for said land and the improvements to be constructed thereon, pursuant to Minnesota Statutes Section 469.177, Subdivision 8; and WHEREAS, the City and the County Assessor for Carver County, have reviewed the preliminary plans and specifications for the improvements which it is contemplated will be erected; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. The minimum market value which shall be assessed for the separate parcel described in Attachment A, with the Minimum Improvements and other improvements constructed thereon shall upon substantial completion be not less than $1,120,000. The parties to this Agreement expect that the construction of the above-referenced improvements will be entirely completed on or before December 31, 2001. 2. The minimum market value herein established remains in full force and effect until the Termination Date defined in Article I of the Contract, at which time this Agreement shall terminate and the City shall provide the Redeveloper with a release in recordable form. 3. This Agreement shall be promptly recorded against each parcel by the Redeveloper with a copy of Minnesota Statutes Section 469.177, Subdivision 8, set forth in Attachment B hereto. The Redeveloper shall pay all costs of recording. 4. Neither the preambles nor provisions of this Agreement are intended to, nor shall they be construed as, modifying the terms of the Contract between the City and the Redeveloper. No provision of this Assessment Agreement shall prevent he Redeveloper from appealing assessed values in excess of $1,120,000. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. RHB-198514vi CH130-66 B-2 (SEAL) CITY OF CHANHASSEN, MINNESOTA By And Linda C. Jansen Its Mayor Todd Gerhardt Its Acting City Manager STATE OF MINNESOTA COUNTY OF On this ~ day of ,2001, before me, a Notary Public within and for said county, appeared Linda C. Jansen and Todd Gerhardt, to me personally known, who being by me duly sworn, did say that they are respectively the Mayor and Acting City Manager of the City of Chanhassen, Minnesota, a municipal corporation under the laws of the State of Minnesota, on behalf of the corporation. Notary Public RHB-198514vl cu~0-66 B-3 REDEVELOPER: PARKER HANNIFIN CORPORATION By Its By STATE OF MINNESOTA COUNTY OF The foregoing instrument was acknowledged before me this 2001, by , the Hannifin Corporation, on behalf of corporation. day of of Parker Notary Public RHB-198514vl CH130-60 B-4 CERTIFICATION BY COUNTY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the minimum market value assigned to the land upon which the improvements are to be constructed, and being of the opinion that the minimum market value contained in the foregoing Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the above described property, hereby certifies that the minimum market value assigned to such land and improvements commencing on December 31, 2001 (to be calculated on January 2, 2002) shall not be less than $1,120,000 until temnination of this Agreement. Assessor for Carver County, Minnesota STATE OF MINNESOTA COUNTY OF CARVER ) ) ss ) The foregoing instrument was acknowledged before me this day of 2001, by , the County Assessor for Carver County, Minnesota. Notary Public RHB-198514vl CH 130-66 B-5 ATTACHMENT A Legal Description of Land REDEVELOPMENT PROPERTY: Lot 2, Block 1, Arboretum Business Park 2nd Addition RHB- 198514v 1 CH 130-66 B-6 ATTACHMENT B Section 469.177, Subd. 8. Assessment agreements. An authority may, upon entering into a development or redevelopment agreement pursuant to section 469.176, subdivision 5, enter into a written assessment agreement in recordable form with the developer or redeveloper of property within the tax increment financing district which establishes a minimum market value of the land and completed improvements to be constructed thereon until a specified termination date, which date shall be not later than the date upon which tax increment will no longer be remitted to the authority pursuant to section 469.176, subdivision 1. The assessment agreement shall be presented to the county assessor, or city assessor having the powers of the county assessor, of the jurisdiction in which the tax increment financing district is located. The assessor shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, shall execute the following certification upon such agreement: The undersigned assessor, being legally responsible for the assessment of the above- described property upon completion of the improvements to be constructed thereon, hereby certifies that the market value assigned to such land and improvements upon completion shall not be less than $1,120,000. Upon transfer of title of the land to be developed or redeveloped from the authority to the developer or redeveloper, such assessment agreement, together with a copy of this subdivision, shall be filed for record and recorded in the office of the County recorder or filed in the office of the registrar of titles of the county where the real estate or any part thereof is situated. Upon completion of the improvements by the developer or redeveloper, the assessor shall value the property pursuant to section 273.11, except that the market value assigned thereto shall not be less than the minimum market value contained in the assessment agreement. Nothing herein shall limit the discretion of the assessor to assign a market value to the property in excess of the minimum market value contained in the assessment agreement nor prohibit the developer or redeveloper from seeking, through the exercise of administrative and legal remedies, a reduction in market value for property tax purposes; provided, however, that the developer or redeveloper shall not seek, nor shall the city assessor, the county assessor, the county auditor, any board of review, any board of equalization, the commissioner of revenue or any court of this state grant a reduction of the market value below the minimum market value contained in the assessment agreement during the term of the agreement filed of record regardless of actual market values which may result from incomplete construction of improvements, destruction or diminution by any cause, insured or uninsured, except in the case of acquisition or reacquisition of the property by a public entity. Recording or filing of an assessment agreement complying with the terms of this subdivision shall constitute notice of the agreement to any subsequent purchaser or encumbrancer of the land or any part thereof, whether voluntary or involuntary, and shall be binding upon them. RHB-198514vl CH130-66 B-7 SCHEDULE C Form of Limited Revenue Tax Increment Note $84,399.00 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF CARVER THE CITY OF CHANHASSEN LIMITED REVENUE TAX INCREMENT NOTE The City of Chanhassen (the "City"), hereby acknowledges itself to be indebted and, for value received, promises to pay to the order of Parker Hannifin Corporation or its assigns ("Redeveloper"), solely from the Available Tax Increment generated by the Redevelopment Property described in Exhibit B hereto (the "Redevelopment Property") and Minimum Improvements located on such parcel, to the extent and in the manner hereinafter provided, the amount of this Note, being $84,399.00, on the Payment Dates (as hereinafter defined) or such greater amount, if any, which the City is required to pay in accordance with the terms of this Note. Each payment on this Note is payable without interest and in any coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to Redeveloper and mailed to Redeveloper at its postal address within the United States which shall be designated from time to time by Redeveloper. The Note is a special and limited obligation and not a general obligation of the City, which has been issued by the City to aid in financing a "project", as defined in Minnesota Statutes Section 469.174, of the City consisting generally of defraying certain capital and administration costs incurred and to be incurred by the City within and for the benefit of its Redevelopment Project (the "Project"), and Tax Increment Financing District (the "District"). EXCEPT AS TO THE OBLIGATION TO MAKE PAYMENTS FROM TAX INCREMENT, THE NOTE IS NOT A DEBT OF THE CITY OF CHANHASSEN, OR THE STATE OF MINNESOTA (THE "STATE"), AND NEITHER THE CITY OF CHANHASSEN, THE STATE NOR ANY POLITICAL SUBDIVISION THEREOF SHALL BE LIABLE ON THE NOTE, NOR SHAIJ~ THE NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN AVAILABLE TAX INCREMENT, AS DEFINED BELOW. Any payments on this Note which are due on any Payment Date shall be payable solely from and only to the extent that the City shall have received as of such Payment Date "Available Tax Increment." For the purpose of this Note, "Available Tax Increment" means any Tax Increment generated as a result of real property taxes paid in the years 2003 through 2008 inclusive and received during the six (6) month period preceding a Payment Date, after deducting therefrom the following amounts: (i) any payment made to Redeveloper of amounts due hereunder with respect to RHB-198514vl CH130-66 C-1 previous Payment Dates, and (ii) any amounts needed to make payments to a school district pursuant to Minnesota Statutes, § 469.177, subd. 10; and (iii) any amounts required to make fiscal disparities contributions and school aid contributions. For the purposes of this Note, "Tax Increment" means the portion of the real property taxes generated with respect to the Redevelopment Property and Minimum Improvements constructed on the Redevelopment Property which is remitted to the City commencing in 2001 as Tax Increment pursuant to Minnesota Statutes § 469.174-469.179. For purposes of this Note, a "Payment Date" shall mean each of the Scheduled Payment Dates set forth on Exhibit A attached hereto, and each additional Payment Date required in connection with any extension of the term of this Note as set forth below, because of changes made in Minnesota Statutes §§ 469.1'74-469.179. Notwithstanding anything to the contrary in this Note, on each of the Payment Dates, the City shall pay to Redeveloper all of the Available Tax Increment up to the amount of the Scheduled Payment; but in no event shall the aggregate of all such payments be in excess of $84,399.00. To the extent that on any Payment Date the City is unable to make a payment from Available Tax Increment equal to the Scheduled Payment due on such date as a result of having received, as of such date, insufficient Available Tax Increment, such failure shall not constitute a default under this Note and, except as provided below, the City shall have no obligation under this Note, or otherwise, to subsequently pay any such deficiency. If, and only if, on any Payment Date there 'is insufficient Available Tax Increment to make the Scheduled Payment due on such date and such insufficiency is a result of changes made in Minnesota Statutes §§ 469.174-469.179 subsequent to the date of the Contract for Private Redevelopment dated between the City and Redeveloper (the "Redevelopment Contract"), the amount of such deficiency in the Scheduled Payment shall be deferred and shall be paid on the next Payment Date on which the City has Available Tax Increment in excess of the amount necessary to make the Scheduled Payment due on such Payment Date, and if such deficiency has not been paid in full by the final Scheduled Payment Date set forth on Exhibit A attached hereto, the Note shall nonetheless terminate and the City shall have no obligation to make payment of such deficiencies. This Note shall not be payable from or constitute a charge upon any funds of the City of Chanhassen, and the City shall not be subject to any liability hereon or be deemed to have obligated itself to pay hereon from any funds except the Available Tax Increment, and then only to the extent and in the manner herein specified. Redeveloper shall never have or be deemed to have the right to compel any exercise of any taxing power of the City or of any other public body, and neither the City nor any council member, officer, employee or agent of the City, nor any person executing or registering this Note shall be liable personally hereon by reason of the issuance or registration hereof or otherwise. This Note shall not be transferable or assignable, in whole or in part, by Redeveloper without the prior written consent of the City. RHB-198514vl CH130-66 C-2 This Note is given subject to the limitation contained in Section 5.4 of the Redevelopment Contract. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the city council of the City of Chanhassen has caused this Note to be executed by the manual signatures of the Mayor and the City Manager of the City and has caused this Note to be dated as of Linda C. Jansen, Mayor Todd Gerhardt, Acting City Manager RHB- 198514v 1 c~3o-66 C-3 EXHIBIT A Scheduled Payment Dates and Amounts of Scheduled Payments Scheduled Payment Dates July 31, 2003 December 31, 2003 July 31, 2004 December 31, 2004 July 31, 2005 December 31, 2005 Scheduled Payments* $14,066.50 $14,066.50 $14,066.50 $14,066.50 $14,066.50 $14,066o50 Scheduled payments are to be made up to these amounts but only from Available Tax Increment. RHB- 198514vl c.~3o-66 C-4 EXHIBIT B Description of Redevelopment Property Lot 2, Block 1, Arboretum Business Park 2nd Addition RHB-198514vi CH 130-66 C-5 SCHEDULE D LIST OF PRELIMINARY PLAN DOCUMENTS [to be completed] RHB-198514vl CH 130456 D-1 ~-9 JequJnN l!oJ:~s!C] -II.L 9 JequJnN lo.uls!c] lue~udole^ec] 9 'ON Io!JlS!Q UeLUeJOUl Xe.L / e/noEl : July 3, 2001 Parker Hannifin Corporation 6035 Parkland Boulevard Cleveland, Ohio 44124-4141 Phone (216) 896-3000 Fax: (216) 896-4039 Mr. Todd Gerhardt Assistant City Manager City of Chanhassen 690 City Center Drive Chanhassen, MN 55317 Re: Parker Hannifin Corporation TIF Dear Mr. Gerhardt: Enclosed please find Parker Hannifin Corporation's Completed Tax Increment Financing application. If you have any questions or need additional information, please contact me at (216) 896-2711. Thank you for your help. Sincerely, Wendy Stipanovich Tax Analyst 05/18/01 13'03 FAY 612 937 5739 CITY OF Ct{ANHASSEN ~006 CITY OF CH.&NHASSEN APPLICATION FOR BUSINESS SUBSIDY Business Name: Parker H~nni fin .~0r-poration Address: 6035 Parkland Blvd., C]eve!and, Oh Location of Proposed Development: 2860 Watertower PI . Chanhassen, MN 55317 Type(Partnership, et~c.): C-Corporation Telephone: 216-896-3000 Nature of Business: 44124 Manufacture Hydraulic cartridges HISTORY OF APPLICANT 1. Have you ever filed bankruptcy? Yes____No X If yes, provide details on separate sheet. 2. Have you ever defaulted on any loan commitment? Y~s No X If yes, provide details on separate sheet, 3. Have you ever applied for conventional £mancing for the project? Yes If yes, provide details on separate sheet. If no, why not? Project Cost Breakdown: $ $ $ $ Total: $ Date: NoX___ I 4. List financial references: Name/Address/Contact ~t. b. ¢. 5. Other information pertinent to your application: N/A 6. Name of Counsel: I~ C~ 05/18/01 13:03 F~I 612 937 5739 CITY OF CHANK~SSEN ~007 INFORMATION CONCERNING APPLICANT'S PROPOSED PROJECT FOR EXISTING IND~'~-TRIAL DEVELOPMENT LOCATED IN TIF DISTRICTS(National Weather, 2-2~ ~enneoin County, 3-I: Gateway. 6-1; E~tertainment District. 4~: AND Eden Trace. 4-1. 1. Is the proposed project a new facility or rehabilitation and/or expansion of existing facility? New Industrial/Commerciah Indus trial What is the present employment of your firm? 54 What will the employment be at completion of project? 68 Est/mated Project Cost? $3,700,000 What is the principal bushness or product of the company? This division makes and steel blocks. 3. 4. 5. 6. aluminum 7. Potential other use of proposed development? Other activities will accounting, sales, research and design. 8. Will this development attract other related industries? Yes X How? Suppliers Will be needed to complete __No ~ operations such as coatings and raw material purchas~.s. 9. What are the proposed £mancing orrangements?_ CompAny fSnanced.. various secondary. 05/18/01 13:03 FAX 612 937 5739 CITY OF CHAN}LASSEN ~008 INFORMATION CONCERNING APPLICANT'S PROPOSED HOUSING PROJECT Is the proposed housing project a new facility or rehabilitation and/or expansion of existing facility? N/A 2 Housing Type(single family, multi-family, apartments, condominiums, etc.): 3. Number of units: 4. Number of bedrooms in each unit: 5. Sale price of the units: or 6. Rental price of the units: 7. Estimated total project cost and breakdown of overall development cosls? 8. Who are you principally marketing your product to? 9. How long do you think it will take to sell or rent your product? 11. Do you have linkages/contacts with Chanhassen businesses? Please explain(Reason: To see ffyou are meeting the local business needs.) · 12. Wtmt are ihe proposed financing arrangements? 13. How are you proposing to meet alternate transportation needs? CITY "'iDATE: June 5, 2001 CC DATE: June 25, 2001 REVIEW DEADLINE: 7/3/01 CASE #: SPR #2001-6 By: RG, JS, ST, ML, MS STAFF REPORT PROPOSAL: Request for site plan review for a 32,000 sq. ft. office/manufacturing building (Phase I) Parker Hannifin Corporation. LOCATION: 2860 Water Tower Place - Lot 2, Block 1, Arboretum Business Park 2nd Addition APPLICANT: Parker Hannifin Corporation 7850 Park Drive Chanhassen, MN 55317 (952) 474.-0909 Steiner Development 3610 South County Road 101 Wayzata, MN 55391 (952) 473-5650 PRESENT ZONING: 2020 LAND USE PLAN: Planned Unit Development, PUD (office industrial park) Office/Industrial ACREAGE: 5.4 acre parcel DENSITY: 0.136 F.A.R. SUMMARY OF REQUEST: The applicant, Parker Hannifin is requesting site plan review approval for the first phase of a corporate building within the Arboretum Business Park. This phase of the building is 32,000 square feet. The second phase of the building would add another 32,000 square feet of area. Notice of this public heating has been mailed to all property owners within 500 feet. LEVEL OF CITY DISCRETION IN DECISION-MAKING: The City's discretion in approving or denying a site plan is limited to whether or not the proposed project complies with Zoning Ordinance requirements. If it meets those standards, the City must then approve the site plan. This is a quasi-judicial decision. i / [ / // I / / / W 82nd St. ArboretumBou leva Future Street / ;' / ,. I /" 5A 6 A~ Parker Hannifin Corporatio,. June 5, 2001 Page 2 PROPOSAL/SUMMARY The developer is requesting site plan approval to build a 32,000 square foot one story office - manufacturing building within the Arboretum Business Park. This building represents the first phase of development on this site and the building is designed to permit a 32,000 square foot expansion to the west. The main entrance is located to the south and has an anodized aluminum entrance awning over k. The loading docks are located to the north, have a metal canopy over them, and will be screer.ed from public views by berming and landscaping. The primary building material is burnish, scored brick in a Buffstone (sandy-beige) color. Horizontal accent bands consisting of'a soldier course; of dark mod (brownish-red) brick are run on the south, east and part of the north and west sides of the building. The building base consists of walnut colored (brown), rock face block. The buildi:ag materials are a high quality. The proposed development should be a welcome addition to the community. The plans show an alternate of using flush architectural metal panels on the west expansion wall area. Staff is unfamiliar with this material, however, we believe that the use of this material would be incompatible with the development design standards which state that "metal siding will not.be appro~ed except as support material to one of the above materials or curtain wall on office components or, as lrim or as HVAC screen." Additionally, this side has a minimal amount of articulation and Should incorporate the three primary materials along its length. The si':e plan, as submitted, was deficient on landsCaping quantities. However, as part of the review, staff has provided the required numbers of plants and can easily verify that the revised landscaping plans -compl.~t with the requirements. The building will be connected to the street via a concrete sidewalk providing pedestrian and bicycle access to the property. The developer shall provide areas for bicycle parking and storage. The si:e appears within the Bluff Creek Overlay District secondary zone. However, staff believes this is an error based on conditions before the approval of the business park and the wetland alteration permit. Staff will be revising this line to more accurately depict the areas within Arboretum Business Park which are within the primary and secondary zones (specifically, the lands east of Century Boulevard). (The Site plan appears to comply with most of the proposed design criteria being developed and review'ed by the city. Building components appear to have good proportions. There is sufficient architectural detail on all elevations except for the proposed expansion elevation which will have, at a minimum, two building materials. The entrance is located to the primary street and is covered by a metal awning. The south elevation has over 50 percent transparent windows. Staff is concerned that the east elevation of the building does not have additional articulation. While the developer proposes windows and a patio area in the southeast comer of the building, the remainder of the wall has little articulation. Staff believes that this elevation could be improved through any of the following methods: add o, terhead windows, incorporate column elements, incorporate patterns with the accent bricks, or install tall, narrow trees adjacent to the building. Staff would also recommend that a smaller canopy or trellis be installed over the patio area.) Parker Hannifin Corporatiol~ June 5, 2001 Page 3 Staff is recommending approval of the site plan for Parker Hannifin subject to the conditions of the staff report. BACKGROUND On July 12, 1999, the City Council approved Site Plan #99-13, for a 59,990 sq. ft. office warehouse building (Building m) on Lot 2, Block 2, Arboretum Business Park 2nd Addition. On March 8, 1999, the City Council approved PUD #92-6 granting final plat approval for Arboretum Business Park 3~t Addition creating two lots and right-of-way for TH 41. On February 8, 1999, the City Council approved site plan #99-1 for a 5,737 square foot Kwik Trip convenience store and gas station with a drive through car wash. This project was later taken over by Citgo and revised to a 6,309 square foot building. On June 22, 1998, the city approved a site plan for a 55,911 square foot building (All About Lights) and a 52,956 square foot building (On The Level) within Arboretum Business Park 2nd Addition. On May 11, 1998, the City Council approved Arboretum Business Park 2nd Addition consisting of six lots and the right-of-way for Water Tower Place, formerly known as Coulter Boulevard, and a site plan for a 113,600 square feet office-industrial-warehouse buildings (Steiner Building 2).- On July 28, 1997, the City Council approved the following: the ordinance for PUD g92-6 rezoning approximately 154 acres from Agricultural Estate, A2, to Planned Unit Development, PUD, and the PUD ~92-6 granting final plat approval for Arboretum Business Park. On June 9, 1997, the City Council approved site plan #97-6 for Heartland America, a 101,600 square foot office industrial building (Steiner Building 1) on Lot 3, Block 1, Arboretum Business Park. APPLICABLE REGULATIONS Section 20-106 through 20-122, Site Plan Review Arboretum Business Park Development Standards GENERAL SITE PLAN/ARCHITECTURE This property is zoned PUD light industrial/office park. The use of the PUD zone is to allow for more flexible design standards while creating a higher quality and more sensitive proposal. The development must comply with the Development Design Standards for Arboretum Business Park. The PUD requires that the development demonstrate a higher quality of architectural standards and site design. The entrance is oriented toward Water Tower Place is covered by a metal awning. The loading dock is located to the rear of the building. The elevation of the site, the use of berming and landscaping on the north elevation should adequately screen the loading docks, with just the upper elevations of the building visible. The north elevation of the building is visible from Highway 5. In the future, the two lots at Century Boulevard and Highway 5 will develop with commercial uses. The large 20 plus acre Parker Hannifin Corporatio. June 5, 2001 Page 4 parcel immediately to the north is slated to be developed for a corporate headquarter type use (see attached PUD Plan for Arboretum Business Park). This future development should also act to screen this area from views from Highway 5. Arboretum Business Park was designed to have building pads terraced to preserve some of the original topography of the site. The building pad for this site (993) is approximately 29 feet above the finished floor elevation (964) of the 113,600 square feet office-industrial-warehouse buildings (Steiner Building 2) located on the property to the east. The Heartland America building (finish floor elevation 980), a 101,600 square foot office industrial building (Steiner Building 1) located south and east of the site, is approximately 13 feet below the floor elevation of this building. The building is approximately 22 feet lower than the finished floor elevation (1015) for a 59,990 sq. ft. office warehouse building (Steiner Building m) and the 55,911 square foot office/showroom building (All About Lights) located south and west across Water Tower Place from this site. The proposed building pad to the west is approximately 12 feet higher (1005) than the finished floor elevation for this building. The proposed site plan, subject to the modifications contained in the staff report, appears to meet or exceed the development design standards for Arboretum Business Park. COMPLIANCE TABLE PUD Parker Hannifin Building Height 3 stories 1 story Building Setback N-0' E-0' W-0' S-30'/Max 100' N- 130' E-96' W-35' S-93' Parking stalls 82 108 stalls Parking Setback N-0' E-0' N-45' E-48' W-0' S-20' W-26' S-20' Hard surface 70%* 75.1% Coverage Lot Area 1 acre 5.4 acres * The development may average 70% impervious surface over the entire projeCt. Individual lots may exceed the 70% coverage. Variances Required - none Parking Standards: Office - 4.5 spaces per 1,000 square feet; Manufacturing - 1 parking space for each employee on the major shift and 1 space for each motor vehicle when customarily kept on the premises. Staff has estimated the required parking at 82 spaces. The applicant has provided 108 spaces. At least three of these spaces will be lost with the additional landscape peninsulas. Parker Hannifin CorporatiO,, June 5, 2001 Page 5 LANDSCAPING Minimum requirements for landscaping include 3,874 sq. ft. of landscaped area around the parking lot, 16 trees for the parking lot, and buffer yard plantings along the property lines. Applicant's proposed as compared to the requirements for landscape area and parking lot trees is shown in the following table. Vehicular use landscape area Trees/parking lot North prop. line - buffer yard B, 540' South prop. Line - buffer yard B, 380' East prop. line - buffer yard B, 480' West prop. Line- buffer yard B, 450' Required Proposed 3,874 sq. ft. >3,874 sq. ft. 16 overstory 5 overstory 8 islands/peninsulas 5 islands/peninsulas 5 overstory 0 overstory 11 understory 13 understory 22 shrubs' 0 shrubs 4 overstory 2 overstory 8 understory 4 understory 15 shrubs 0 shrubs 5 overstory trees 3 overstory 10 understory trees., 5 understory 19 shrubs 5 shrubs 5 overstory 0 overstory 9 understory 3 understory 18 shrubs 9 shrubs Proposed landscaping does not meet minimum ordinance requirements. Staff recommends that a revised landscape plan that meets minimum requirements be submitted to the city prior to City Council approval. Additional landscape peninsulas shall be located in the northern parking lot (two additional) and at the north end of the parking spaces on the east side of the building. Trees shall be added in each of the landscaping peninsulas and in the southeast corner of the building. If these landscape peninsulas are less than 10 feet in width, then aeration tubing shall be installed. -All new landscaped areas shall have irrigation system installed pursuant to city ordinance. BLUFF CREEK NATURAL RESOURCE MANAGEMENT PLAN This site appears within the secondary corridor of the Bluff Creek Overlay District (BCO). These boundaries were based on wetland fingers that were in place prior to the development of Arboretum Business Park. However, staff now believes that the boundary for the BCO is for all purposes limited to the east side of Century Boulevard, which acts as a delineator for the district. The development of Arboretum Business Park (formerly known as Gateway) was reviewed under an Alternate Urban Areawide Review (AUAR) to determine the development's impacts on natural systems. The development of this site is consistent with the AUAR. Parker Hannifin Corporation: June 5, 2001 Page 6 While the development impacted 2.93 acres of wetland, they created 6.65 acre of new wetland and storm water ponds. The city approved a wetland alteration permit as well as wetland mitigation plan as part of the development approval. This approval, in essence, altered the area that should be included in the BCO. The secondary zone boundary shall be realigned east of Century Boulevard. The primary zone boundary shall be determined as part of any development approvals for the two parcels east of Century Boulevard. Staff will, as permitted by the ordinance, be reevaluating these boundaries as developments are reviewed. LIGHTING/SIGNAGE Lighting for the interior of the business center should be consistent throughout the development. A decorative, shoe box fixture 20 foot tall 400 watt metal Halide lot light with a square ornamental pole shall be used for area lighting. All light fixtures shall be shielded with a 90 degree light cut-off. Any wall mounted lighting shall be shielded from direct off-site view. Light level for site lighting shall be no more than 92 candle at the property line. All freestanding signs be limited to one monument sign per street frontage. The sign shall not exceed eighty (80) square feet in sign display area nor be greater than eight (8) feet in height. The sign treatment is an element of the architecture and thus should refl~t the quality of the development. The signs should be consistent in color, size, and material throughout the development. The developer has shown a monument sign at the entrance to the site. Wall signage shall be permitted per city ordinance for industrial office park site. The applicant has shown wall signage on either the north or east elevations. City ordinance permits wall signage on street frontage only, however, we have in the past permitted wall signage on other elevations provided that wall signage is only permitted on the number of building elevations for which signage would be permissible. In this instance, wall signage would be permitted on only one building elevation. All signs shall require a separate sign permit. PARKS AND OPEN SPACE Arboretum Business Park dedicated sufficient park land to meet the park land dedication requirement. However, the developer is responsible for trail fees. As required by ordinance, the developer shall pay trail fees pursuant to city ordinance at the time of building permit approval. GRADING/DRAINAGE/EROSION CONTROL The proposed drainage plan is consistent with the approved drainage plan for the development. Storm water from the building and adjacent parking lot will be conveyed via storm sewer to an existing catch basin in Water Tower Place. Storm sewer sizing calculations for a 10-year, 24-hour storm event must be submitted for review and approval. In addition, grading on the west side of the proposed building needs to be revised to avoid ponding water on the future building site. Parker Hannifin Corporation, June 5, 2001 Page 7 Proposed erosion control consists of silt fence along all sides except the west side of the site. A rock construction entrance is proposed at the entrance to the site; however, the length needs to be increased to 7.5 feet as per City Detail Plate No. 5301. UTILITIES Municipal sewer and water is available to the site from Water Tower Place. A sewer and water service is proposed to be extended from the existing Service stubs. Installation of the private utilities for the site will require permits and inspections through the City's Building Department. The location and number of fire hydrants should be reviewed and approved by the City's Fire Marshal. STREETS The proposed driveway entrance to the site from Water Tower Place must be a minimum of 26 feet in width per City Code. Staff is recommending that the proposed 5-foot wide sidewalk, which is shown on the site plan along the east side of the driveway, be moved to the west side of the driveway. This would eliminate the need for pedestrians to cross the truck entrance when entering/leaving the building. SITE PLAN FINDINGS In evaluating a site plan and building plan, the city shall consider the development's compliance with the following: Consistency with the elements and objectives of the city's development guides, including the comprehensive plan, official road mapping, and other plans that may be adopted; (2) Consistency with this division; (3) Preservation of the site in its natural state to the extent practicable by minimizing tree and soil remoVal and designing grade changes to be in keeping with the general appearance of the neighboring developed or developing or developing areas; (4) Creation of a harmonious relationship of building and open space with natural site features and with existing and future buildings having a visual relationship to the development; (5) Creation of functional and harmonious design for structures and site features, with special attention to the following: ao An internal sense of order for the buildings and use on the site and provision of a desirable environment for occupants, visitors and general community; b. The amount and location of open space and landscaping; Parker Hannifin Corporatio. June 5, 2001 Page 8 Co Materials, textures, colors and details of construction as an expression of the design concept and the compatibility of the same with adjacent and neighboring structures and uses; and do Vehicular and pedestrian circulation, including walkways, interior drives and parking in terms of location and number of access points to the public streets, width of interior drives and access points, general interior circulation, separation of pedestrian and vehicular traffic and arrangement and amount of parking. (6) Protection of adjacent and neighboring properties through reasonable provision for surface water drainage, sound and sight buffers, preservation of views, light and air and those aspects of design not adequately covered by other regulations which may have substantial effects on neighboring land uses. Finding: Subject to the revisions contained in the staff report, the proposed site plan is consistent with all plans and specifications and development design standards for the Arboretum Business Park Planned Unit Development. PLANNING COMMISSION UPDATE The Planning Commission held a public hearing on June 5, 2001 to review the proposed development. The Planning Commission voted unanimously to recommend approval of the site plan subject to the conditions of the staff report with modification to condition 15 that the development shall comply with State guidelines regarding handicapped accessible parking spaces, and the addition of the following conditions: 34. 35. 36. The west elevation of the building shall incorporate two of the primary materials along its length. Any future building expansion shall incorporate the three primary building materials that are the same as used on the first phase. The use of metal as a primary building material shall be prohibited per the PUD agreement. The Planning Commission was concerned with the status of impervious surface within the development. Staff has reviewed the impervious surface of approved projects within the development as well as the ultimate development of this lot and calculated impervious surface coverage of approximately 64 percent. A maximum of 70 percent impervious surface is permitted. RECOMMENDATION Staff recommends that the City Council adopt the following motion: "The City Council approves Site Plan//2001-6, as shown on the plans prepared by Steiner Development, Inc., dated May 4, 2001, based on the findings of fact and subject to the following conditions: Parker Hannifin Corporatio,, June 5,2001 Page 9 The applicant shall enter into a site plan agreement with the City and provide the necessary security to guarantee erosion control, site restoration and landscaping. o The developer shall work with staff to provide additional articulation to the eastern building elevation. A revised landscape plan that meets minimum requirements shall be submitted to the city prior to City Council approval. Additional landscape peninsulas shall be located in the northern parking lot (two additional) and at the north end of the parking spaces on the east side of the building. Trees shall be added in each of the landscaping peninsulas. If these landscape peninsulas are less than 10 feet in width, then aeration tubing shall be installed. 5. All new landscaped areas shall have irrigation system installed pursuant to city ordinance. 6. The developer'shall provide areas for bicycle parking and storage. 7~ A decorative, shoe box fixture 20 foot tall 400 watt metal Halide lot light with a square ornamental pole shall be used for area lighting. All light fixtures shall be shielded with a 90 degree light cut-off. Any wall mounted lighting shall be shielded from direct off-site view. 1 A 10-foot clear space must be maintained around fire hydrants, i.e. street lamps, trees, shrubs, bushes, Xcel Energy, US West, Cable TV and transformer boxes. This is to ensure that the fire hydrants can be quickly located and safely operated by firefighters. Pursuant to Chanhassen City Ordinance #9-1~ Fire lane signs and yellow curbing will be required. Contact Chanhassen Fire Marshal for exact curbs to be painted and exact location of fire lane signs. Pursuant to Chanhassen Fire Department/Fire Prevention Division Policy #6-1991 and Section 904-1 1997 Uniform Fire Code. 10. Comply with water service installation policy for commercial and industrial buildings. Pursuant to Inspection Division Water Service Installation Policy #34-1993. Copy enclosed. 11. Comply with the Chanhassen Fire Department/Fire Prevention Division Policy regarding maximum allowed size of domestic water on a combination domestic/fire sprinkler supply line. Pursuant to Chanhassen Fire Department/Fire Prevention Division Policy #36-1994. 12. Comply with the Chanhassen Fire Department/Fire Prevention Division Policy regarding notes to be included on all site plans. Pursuant to Chanhassen Fire Department/Fire Prevention Division Policy #4-1991. 13. The building is required to have an automatic fire extinguishing system. Parker Hannifin Corporation, · June 5, 2001 Page 10 14. The building plans must be prepared and signed by design professionals licensed in the State of Minnesota. 15. The development shall comply with State guidelines regarding handicapped accessible parking spaces. 16. Detailed occupancy retailed requirements cannot be reviewed until complete plans are submitted. (It does appear however that exiting from the office area does not comply with the code.) 17. Utility Plan: If the addition is built MH 1 would have to be relocated and piping materials must comply with the code. 18. The owner and or their representative shall meet with the Inspections Division as soon as possible to discuss plan review and permit procedures. 19. The developer shall pay trail fees pursuant to city ordinance at the time of building permit- approval. 20. 21. 22. Grading on the west side of the proposed building needs to be revised to avoid ponding water on the future building site. ~ -. Move the proposed sidewalk to the west side of the driveway. Also, show this sidewalk on the grading plan. The developer shall apply for and obtain a permit from the Watershed District. 23. The applicant shall report to the City Engineer the location of any drain tiles found during construction and shall relocate or abandon the drain tile as directed by the City Engineer. 24. Revise the site plan and grading plan to comply with the minimum driveway entrance width of 26 feet. 25. The applicant shall provide detailed storm sewer sizing calculations for a 10-year, 24-hour storm event prior to building permit approval. 6e The rock construction entrance shall be increased to a minimum of 75 feet in length as per City Detail Plate No. 5301. 27. On the detail sheet, show the revised 2001 City detail plates for Nos. 1004 and 5207. 28. Prior to building permit issuance, all plans must be signed by a professional civil engineer registered in the state of Minnesota. 29. Show the location of the existing street lights along Water Tower Place. Also, show the location of the existing catch basins in Water Tower Place, west of the sanitary sewer stub to Parker Hannifin Corporatio,, June 5,2001 Page 11 the site. 30. Show a benchmark on the grading plan. 31. The site plan needs to be revised to show a proposed 5-foot concrete sidewalk following the main entrance out to the southeasterly comer of the site. 32. The existing water stub to the site is an 8-inch service. As such, an 8" x 6" reducer will be needed. 33. On the site plan, label the drive aisle and entrance widths. Also, show the proposed curb radius at the entrance drive. 34. The west elevation of the building shall incorporate two of the primary materials along its length. 35. Any future building expansion shall incorporate the three primary building materials that are used on the first phase. 36. The primary metal building material shall be prohibited per the PUD Agreement." ATTACHMENTS 1. Findings of Fact and Recommendation 2. Development Review Application 3. Reduced Copy Site Plan 4. Reduced Copy Building Elevations 5. Reduced Copy Overall Floor Plan 6. Memo from Mark Littfin to Robert Generous dated 5/11/01 7. PUD Plan Arboretum Business Park 8. Gateway West Overlay 9. 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Nal613~JONI XVl ~Llnoa June 19, 2001 DEVELOPMENT PROPOSAL FOR PARKER HANNIFIN CORPORATION 32,000 Square Feet Office Warehouse Facility Lot 2, Block 1, Arboretum Business Park 2nd Addition Chanhassen, Minnesota - Carver County New Minimum Market Value: $1,120,000.00 - 150,000.00 $ 97O,OOO.OO x 3.4% $ 32,980.00 x 3,600.00 (150,000 x 2.4% = 3,675) $ 36,580.00 x 153.820% Local tax rate $ 56,267.00 Total property taxes + 2 School aid/Fiscal disparities contribution $ 28,133.00 Total Annual Incentives Payments 2003 2004 2005 $28,133.00 $28,133.00 $28,133.00 Total Incentives $84,399.00