BUFFALO CITY COUNCIL...sewer/sewer truck that is scheduled for purchase in 2020 for the Street Department and Wastewater Department. MacQueen Equipment has provided a quotation through

BUFFALO CITY COUNCIL AGENDA

Meeting: Monday, September 16, 2019 Place: Buffalo City Center Time: 7:00 p.m. 1. ANNOUNCEMENTS. At the onset of each meeting the Mayor and Council will make announcements. 2. OPEN FORUM.

The purpose of the open forum section of the meeting is to allow citizens to express any needs or concerns that they have to the City Council. We allocate this time toward non-agenda items only. The City Council can then act on the concern or put the item on a future agenda.

3. AGENDA ADDITIONS OR DELETIONS. Most often additions are noted at this time and then heard at the end of

the regular agenda. 4. COUNCIL REPORTS AND RECOGNITION. This is the time the Mayor and Council give reports and recognize people

or organizations. 5. APPROVAL OF SEPTEMBER 3 MINUTES, CLAIMS AND PAYROLLS. The Council will review claims and payrolls as well as the prior meeting

minutes. A. Approval of Minutes B. Approval of Claims and Payrolls

Please Click Here For More Information.

Buffalo City Council Agenda

6. PLANNING COMMISSION MATTERS. Summary:

• Greenbriar Hills 4TH Addition Final Plat, PID 103-257-000100 • First Avenue Lofts TIF Comp Plan Resolution, 204 1ST Avenue NW, PIDS

103-026-002020, 103-026-009062 & 103-026-009030 • Solar Power Zoning Ordinance Amendment – Residential, Business and

Industrial Zoning Districts • Housing Plan-Comprehensive Plan Amendment Recommended Action: Act on Planning Commission Recommendations. Responsible Person for Report: Council Member Steve Downer

Please Click Here For More Information. 7. PUBLIC HEARING – FIRST AVENUE LOFTS TAX INCREMENT

FINANCING, 204 1ST AVE NW, PIDS 103-026-002020, 103-026-

009062 & 103-026-009030. Summary: First Avenue Lofts by Roers Development proposes a 60-unit

workforce housing project on property located at 204 First Avenue Northwest. The Housing & Redevelopment Authority recommends adoption of the TIF modification and plan as proposed. Recommended Action: It is recommended that the City Council receive public comments. It will be necessary to adopt a resolution finding the proposed plan consistent with the City’s Comprehensive Plan should the Council choose to approve the Tax Increment Financing Plan. After the hearing the Council may choose to approve the TIF modification and plan, or not. Responsible Persons for Report: Nick Anhut from Ehlers and Associates and Assistant Administrator Laureen Bodin

Please Click Here For More Information.


8. BUFFALO APARTMENTS FINAL PLAT FOR FIRST AVENUE LOFTS. Summary: Roers Development requested approval of their final plat in

their application for PUD, preliminary and final plat in June. PUD and preliminary plat have been approved. The City Council is now asked to act on approval or denial of the final approval of the Buffalo Apartments final plat. There is a final action for vacation of the platted alley within the parcel. Based upon approved site plans for the Fire Station and First Avenue Lofts the City Council should consider a petition for vacating the alley. Recommended Action: It is recommended that the City Council take final action on the final plat for Buffalo Apartments. It is also recommended that the Council call for a public hearing on Monday, October 21, at 7:00 p.m. to consider vacating the alley within the plat. Responsible Persons for Report: Assistant Administrator Laureen Bodin

Please Click Here For More Information. 9. PUBLIC HEARING – PAST DUE ACCOUNTS TO BE CERTIFIED TO THE

TAX ROLLS. Summary: This is the time to hold a hearing to consider the certification of

past due accounts against properties. If certified, these costs will be sent to the County Auditor who will place them against the tax rolls for the specific parcels. The attached list shows the past due accounts at the time notice was sent and we will also provide the Council with the most current past due list at the meeting should any accounts be reduced or paid in full.

Recommended Action: After public comments are heard it is recommended the Council adopt a resolution certifying the accounts against the tax rolls.

Responsible Person for Report: Assistant Administrator Laureen Bodin Please Click Here For More Information.


10. BENTFIELD MILLS RECREATION AREA AND CIVIC CENTER

IMPROVEMENTS FINANCING.Summary: At the City Council meeting of September 3rd the Councildirected the Administrator to prepare recommendations for financing forimprovements to Bentfield Mills Recreation Area. Staff has alsocontemplated the needed improvements to the Civic Center forrefrigeration and floor replacement.Recommended Action: At this time the City Council is asked to considerthe future scope of financing for these projects in 2020.Responsible Person for Report: Administrator Merton Auger and Nick Anhutof Ehlers and Associates.Please Click Here For More Information.

11. COMMUNITY CENTER ADVISORY BOARD APPLICATIONS.Summary: Geri Bokusky, Veronica Varner and Bernie Lachermeier haveapplied to the Community Center Advisory Board.Recommended Action: The Council may appoint the above applicants toserve on the Community Center Board if they choose to do so.Responsible Person for Report: Assistant Administrator Laureen BodinPlease Click Here For More Information.

12. ACCEPTANCE OF DONATIONS.Summary: The following donation has been received:

• $50 to the Community Center from an Anonymous DonorRecommended Action: Accept Donation With Gratitude.Responsible Person for Report: Assistant Administrator Laureen Bodin


13. AUTHORIZATION TO PURCHASE COMBO SEWER TRUCK.

Summary: There is a long lead time for building a combo storm sewer/sewer truck that is scheduled for purchase in 2020 for the Street Department and Wastewater Department. MacQueen Equipment has provided a quotation through the state contract to provide a new 2020 Vactor 2100I Combo Sewer Truck for jetter/sewer vacuum and hydro for the total price of $403,881.00 split between the two departments. This would be programmed as a lease purchase.

Recommended Action: It is recommended that the Council authorize the purchase of the truck to be delivered in 2020.

Responsible Person for Report: Administrator Merton Auger Please Click Here For More Information. 14. APPROVAL OF WASTEWATER CLARIFIER COATING.

Summary: During the heavy snowfalls in February the City’s Clarifier #4 building at the Wastewater Treatment Plant collapsed. Bolton & Menk has overseen the project to replace damaged equipment and the building. The existing coatings of the mechanism are in fair condition but they are 20 years old and the life expectancy is typically 20 to 30 years so they would likely need to be addressed in the near-term future. It would be most cost effective to address the re-coating with the project repairs at this time. The City would need to cover the cost of the coating. The City Engineer’s estimate for this project is as follows: Replacement of clarifier components due to collapse (Insurance Portion) - $250,000 to $300,000 Recoating of Mechanism or Replacement with Stainless Steel (City Cost) - $150,000 to $225,000 Recommended Action: It is recommended that the City Council approve the recoating at the estimated City costs of $150,000 to $225,000 be approved.

Responsible Person for Report: Administrator Merton Auger and Engineer Justin Kannas

15. ADJOURN.

Planning Commission Minutes September 9, 2019

The Planning Commission of the City of Buffalo held a regular meeting in the City Center on the 9th day of September 2019 at 7:00 p.m. with the following members present: Jameson Wakefield, Tom Salkowski, Ann Vars, Steve Downer, Diane Bjorgum and Paul Olson. Also in attendance were Planner Stephen Grittman, Planning and Development Coordinator Jennifer Nash and Videographer Quincy Kabe. Absent was Linnea LeBaron.

OPEN FORUM No one spoke at this opportunity. APPROVAL OF AUGUST 12 PLANNING COMMISSION MINUTES A motion was made by Bjorgum and seconded to approve the minutes as presented. All in favor; motion carried. AGENDA ADDITIONS OR DELETIONS There were no additions or deletions. COUNCIL REVIEW Council member Downer noted approval of Spraungel and Aurentz CUPs, and the Whirltronics TIF plan resolution as recommended by the Planning Commission. PUBLIC HEARING – GREENBRIAR HILLS 4TH ADDITION FINAL PLAT, PID 103-257-000100 Planner Grittman introduced this item. TSM Greenbrier LLC has applied for final plat and PUD review for a proposed new residential subdivision to be called Greenbriar Hills 4th Addition. Prior approvals occurred in 2018 and 2019 for the first three phases of the proposed 213 lots in the full Greenbriar Hills plan. The current application is for consideration of final plat and PUD approvals for the fourth phase of 12 detached townhome lots fronting on Lilac Cove to match PUD Master Plan. Two of these lots are being replatted from the 3rd addition. Grittman noted that parking spaces that had been planned for the center island within Lilac Cove have been recommended for removal due to staff concerns about fire truck navigability and ease of snow removal. He also noted the developer would like flexibility to have 5 foot or 6 foot side setback for

September 9, 2019

different building styles that may be desired by builders. Olson asked if there is a plan for clearing snow from the cul-de-sac. Grittman noted this would be a private street so the association would be responsible for removing snow. Olson asked if wetlands will be marked with signs. Grittman noted that the City has required this in some cases, and the Planning Commission could include this as a recommendation if they would like. Don Jensen spoke representing the developer. He noted they are okay with the change in the cul-de-sac recommended. He also noted that signs marking wetlands are planned. Downer stated he believes this development is an example of how Planned Unit Developments can work well. Wakefield asked if an amendment to the recommendation is needed due to remaining questions of overflow parking layout. Grittman noted the recommendation gives staff the flexibility between parallel and angled parking for this overflow. A motion was made by Wakefield and seconded to recommend approval of the final plat and PUD as recommended in the NAC Memorandum, File No: 137.03-19.10 dated September 3, 2019 and BMI Memorandum, Project No: W13.116296 dated September 4, 2019 with the additional item of including flexibility down to 5 foot side setbacks. All in favor; motion carried. FIRST AVENUE LOFTS TIF COMP PLAN RESOLUTION, 204 1ST AVE NW, PIDS 103-026-002020, 103-026-009062 & 103-026-009030 Planner Grittman introduced this item. A tax increment financing (TIF) plan is proposed for the First Avenue Lofts. The Planning Commission is being asked to review this plan for consistency with the Comprehensive Plan. Grittman noted the City Council has previously approved the land use actions required for the proposed 60-unit housing project. Planning Commission’s task is now to make a recommendation, and the City Council are the ultimate decision makers regarding TIF. Chair Salkowski noted that this is not an official public hearing and the discussion is not about whether TIF is appropriate, as that is a decision of the City Council. He noted the Planning Commission did not recommend approval of the land use, but the City Council did approve the development and has that authority.

September 9, 2019

Downer noted that he has previously stated and still believes that this development does not fit within the Comprehensive Plan. Nash noted that there will be a presentation and public hearing at the September 16th Council meeting relating to the proposed Tax Increment Financing plan. Olson asked if the Council’s materials could include park dedication

contributions. Downer noted he would like to see this information. Olson and Bjorgum noted they do not believe the proposed development meets with the Comprehensive Plan. Salkowski asked if additional requirements such as contributions for parks, traffic safety or community facilities can be included with a development agreement or TIF agreement. A motion was made by Salkowski and seconded that the Planning Commission finds that the proposed First Avenue Lofts development does not meet the Comprehensive Plan. All in favor; motion carried. PUBLIC HEARING - HOUSING PLAN-COMPREHENSIVE PLAN AMENDMENT Planner Grittman introduced this item which was carried over from the August 12 meeting. In 2017-2018 the City Council held joint meetings with the Planning Commission and Housing & Redevelopment Authority Board to update its Housing Policy as a part of the City’s Comprehensive Plan. On April 1, 2019 the City Council

reviewed the final draft of the Housing Policy Update and directed that the Planning Commission call for a public hearing to consider making a recommendation for adoption of the Housing Policy Update to the City Council. On May 13, 2019 the Planning Commission reviewed the Housing Policy Update. A public hearing is scheduled to discuss a proposed housing plan for the City of Buffalo as an amendment/addendum to the City’s Comprehensive Plan.

September 9, 2019

Process:

• Joint meetings with Council, Planning Commission, HRA, and others • Focus group meetings with community development interests –

developers, realtors, business leaders • Research related to housing market data in Buffalo, Wright County, and

greater Twin Cities area • Presentation of preliminary findings to Council in March 2019 • Initial presentation to Planning Commission in May 2019 • Public hearing – August/September 2019 to consider amendment to

Comprehensive Plan Summary of Findings:

• There is a strong demand for all housing types and markets, from starter single family homes and townhomes, to move-up housing, to empty nester housing, to multiple family of all ages and markets.

• The most underserved markets are entry level and senior housing. • The restricted market has accelerated price inflation, with sale prices

commonly exceeding County market levels by 10% - 15%. • Zoning regulation changes can benefit facilitating the demand for new

housing by better addressing current housing market trends. Goals and Policies: Primary Goal: Support both short- and long-term housing investment to:

• Address all market segments; • Maintain flexible approach to support a healthy private housing market; • Support housing that both retains current residents as their life

circumstances change and attracts new residents to the community. • Utilize City participation in the housing maintenance and construction

process to encourage attractive neighborhoods over the long term.

Recommendations and Implementation: • Disperse concentrations of high-density housing • Continue the policy of mixing small areas of medium density development

into the overall single-family residential • Consider re-guiding areas for multi-family • Consider re-guiding areas for small-lot single family • Continue to monitor existing housing stock for signs of aging, and

opportunities for improvements and maintenance. • Zoning and Subdivision Ordinance changes

September 9, 2019

Salkowski suggested more ideas for maintaining and improving existing housing stock could be included in the plan as older areas provide great opportunities for affordable housing and opportunities for first-time home buyers to make a home in a neighborhood community. He also noted that the study results show that about 60% of households are currently affordable to those earning 50% or less of the Area Median Income. Downer stated he would consider this as more of a study than as a plan. The change in language would make a clear distinction from the Comprehensive Plan. Olson noted he also sees this as more of a study that could be a resource rather than an amendment to the Comprehensive Plan. Wakefield noted he would like to see more information about actionable plan steps. Carey Thompson, 503 Central Ave, stated the study has some ambiguity. She noted the word “framework” means different things in different areas and would like more clarity on the City’s approach. Leslie Walz, 701 4th Ave NW, expressed concerns about flexibility and specifically lack of requirement for park land to be contributed rather than a monetary contribution for developments. She stated she would like a park required at least every 2 blocks and would like more park land in general. Meredith Johanson, 508 4th Ave NW, thanked the Planning Commission for their work and asked what the purpose of the housing study is. She is wondering if the study is in preparation for changes to zoning ordinances. Sue Mattson, 917 Circle Drive, said that the study should be a resource rather than an amendment to the Comprehensive Plan. She noted that the Downtown Visions Study included additional housing in the area where County offices currently are in the downtown area. Ross Miller, 408 4th Ave NW, is bothered by the word “flexible” as it would give

too much power to the people in charge. Carey Thompson shared a picture of a small home surrounded by a large building and warned this could happen if decisions aren’t made carefully.

September 9, 2019

Salkowski stated he sees value in the information the study provides, and he may see it perhaps as an addendum. Downer stated that the word “flexibility” may not have caused concern two

years ago, but now it may. He asked that folks take a look at the proposed map of where additional multi-family housing could be located. Olson stated he could agree with the document being an addendum or appendix as it allows some flexibility in how it is used. He is hesitant about adopting rules with too much flexibility. Leslie Walz asked that the City define where multi-family housing will go rather than waiting to react to proposals from developers. Wakefield asked how it would be decided whether multi-family housing maps are created. Grittman noted the Commission could choose to adopt a map, and if there isn’t a map, developers may make proposals. Even if a map is adopted, Grittman noted there may be good reasons to consider other possible locations. Salkowski asked if a possible multi-family map would amend the land use map in the Comprehensive Plan. Grittman noted the map was intended to show areas that would have attributes matching qualities noted as desirable for sites in the study. Nancy Loberg, 209 3rd St NW, requested that plans for zoning be followed in the future and provide green space and land use as laid out in the ordinances. Downer suggested a sub-committee come together to come up with an actionable plan. Salkowski asked if it is possible the community should look at a new comprehensive plan. Olson suggested this question be brought to the Council for consideration. Bjorgum also suggested an updated comprehensive plan should be considered. A motion was made by Salkowski and seconded to continue further action to a future meeting. All in favor; motion carried. INTERMISSION Chair Salkowski called a recess at 9:04 p.m. The meeting was reconvened at 9:09 p.m.

September 9, 2019

PUBLIC HEARING - SOLAR POWER ZONING ORDINANCE AMENDMENT - RESIDENTIAL, BUSINESS AND INDUSTRIAL ZONING DISTRICTS Planner Grittman introduced this item that was carried over from the July 8 and August 12 meetings. Grittman noted that without a solar-specific ordinance, solar equipment is currently seen as mechanical equipment or accessory structures depending on the type of installation. A draft ordinance was provided based off of language that is common in some suburban communities. The proposed ordinance would place limitations on ground-mounted solar installations and set parameters for roof-mounted equipment. Olson asked if language should be included in the ordinance about connecting to the electrical utility. Grittman noted electrical code regulates this so the language is not needed within the zoning ordinance. Downer suggested specific height and setback restrictions from another model ordinance be included in this ordinance. Andrew Burgdorf, 1812 Highway 25 S, stated he would like the ordinance to allow for installations that are not connected to the grid. He requested that distance from the edge of the roof not be required as one-level installations as it would then be restricted unnecessarily. Salkowski asked if state statute considers solar as a criteria for variance. Grittman noted statutes do allow for solar to be a consideration. Downer suggested the Fire Chief speak to clearance on roofs. Commissioner Wakefield noted he would be comfortable forwarding a draft ordinance with changes suggested by Downer to the Council. A motion was made by Bjorgum and seconded to recommend approval of a solar ordinance as amended to the City Council. All in favor; motion carried.

September 9, 2019

OTHER A motion was made by Wakefield and seconded to adjourn the meeting at 9:30 p.m. All in favor; motion carried.

Chairperson

Planning and Development Coordinator

Return to Agenda

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EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF

BUFFALO, MINNESOTA

HELD: SEPTEMBER 16, 2019

Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Buffalo, Wright County, Minnesota, was duly called and held at City Hall on September 16, 2019, at 7:00 P.M.

The following members of the Council were present:

and the following were absent:

Member ____________________ introduced the following resolution and moved its adoption.

RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREA NO. 2; MODIFYING THE

TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICT NOS. 14, 15, 20, 21 AND 22; AND ESTABLISHING TAX

INCREMENT FINANCING DISTRICT NO. 24 THEREIN AND ADOPTING A TAX INCREMENT FINANCING PLAN THEREFOR.

A. WHEREAS, the City Council of the City of Buffalo (the City") and the Board of Commissioners of the Buffalo Housing and Redevelopment Authority (the "HRA") have heretofore established Redevelopment Project Area No. 2 and adopted the Redevelopment Plan therefor. It has been proposed by the HRA and the City that the City (1) adopt a modification to the Redevelopment Plan (the "Redevelopment Plan Modification") for Redevelopment Project Area No. 2 (the "Project Area"); (2) expand the Project Area; (3) establish Tax Increment Financing District No. 24 (the "TIF District") therein; (4) approve and adopt the Tax Increment Financing Plan (the "TIF Plan") therefor; and (5) adopt a modification to the Tax Increment Financing Plans for Tax Increment Financing District Nos. 14, 15, 20, 21, 22, and 23 (the "TIF Plan Modifications") (the Redevelopment Plan Modification, the TIF Plan and the TIF Plan Modifications are referred to collectively herein as the "Plans"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 through 469.047, Sections 469.090 through 469.1082, and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act") all as reflected in the Plans, and presented for the Council's consideration.

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B. WHEREAS, the HRA and City have investigated the facts relating to the Plans and have caused the Plans to be prepared.

C. WHEREAS, the HRA and City have performed all actions required by law to be performed prior to the approval of the Plans, including, but not limited to, a review of the Planning Commission of the proposed Plans, notification of Wright County and Independent School District No. 877 having taxing jurisdiction over the property included in the Plans, and the holding of a public hearing upon published and mailed notice as required by law; and

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Buffalo:

1. Project Area and Redevelopment Plan Modification. The City is modifying the boundaries of the Project Area to include the TIF District. The Council approves the Redevelopment Plan Modification, and specifically finds that: (a) the land within the Project Area as expanded would not be available for redevelopment without the financial aid to be sought under the Redevelopment Plan; (b) the Redevelopment Plan Modification will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project by private enterprise; and (c) that the Redevelopment Plan Modification conforms to the general plan for the development of the City as a whole.

2. The TIF District. There is hereby established in the City within the Project Area, Tax Increment Financing District No. 24, a housing tax increment financing district, the initial boundaries of which are fixed and determined as described in the TIF Plan.

3. The TIF Plan. The TIF Plan is adopted as the tax increment financing plan for TIF District, and the City Council makes the following findings:

a. The TIF District is a housing district as defined in Minnesota Statutes, Section 469.174, Subd. 11, the specific basis for such determination is set forth in Appendix C of the TIF Plan.

b. The proposed development in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The reasons for such determination are set forth in Appendix C of the TIF Plan.

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c. The TIF Plan for the TIF District conforms to the general plan for development or redevelopment of the City as a whole. The reasons for supporting this finding are set forth in Appendix C of the TIF Plan.

d. The TIF Plan for the TIF District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Project Area by private enterprise. The reasons supporting this finding are set forth in Appendix C of the TIF Plan.

e. Appendix C of the TIF Plan is incorporated herein by reference.

4. Modification to the Tax Increment Financing Plans for Tax Increment Financing District Nos. 14, 15, 20, 21, 22, and 23.

a. The HRA and the City have previously established Tax Increment Financing District Nos. 14, 15, 20, 21, 22, and 23 within the Project Area.

b. Pursuant to Minnesota Statutes, Section 469.175, Subd. 4(b)(1), the expansion of the Project Area is deemed to be a modification to the Tax Increment Financing Plans for Tax Increment Financing District Nos. 14, 15, 20, 21, 22, and 23 therein.

c. Pursuant to Minnesota Statutes, Section 469.028, Subd. 2, the Council hereby finds that the land in the Project Area as expanded would not be made available for redevelopment without the financial aid to be sought; the Redevelopment Plan Modification will afford maximum opportunity consistent with the needs of the City as a whole, for the redevelopment by private enterprise; and the Redevelopment Plan Modification conforms to the general plan for the development of the City as a whole.

5. Public Purpose. The adoption of the Plans within the Project Area conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State which is already built up to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose.

6. Approval of the Plans. The Plans, as presented to the Council on this date, including without limitation the findings and statements of objectives

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contained therein, are hereby approved and adopted and shall be placed on file in the office of the City Administrator.

7. Certification. The Auditor of Wright County is requested to certify the original net tax capacity of the TIF District as described in TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased in accordance with the Act; and the City Administrator is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution.

8. Filing. The City Administrator is further authorized and directed to file a copy of the Plans with the Commissioner of Revenue and the Office of the State Auditor, pursuant to Minnesota Statutes 469.174, Subdivision 4a.

9. Administration. The administration of the Project Area is assigned to the City Administrator who shall from time to time be granted such powers and duties pursuant to Minnesota Statutes, Sections 469.130 and 469.131 as the City Council may deem appropriate.

10. Interfund Loan. The City has determined that it may pay for certain costs (the "Qualified Costs") identified in the TIF Plan which costs may be financed on a temporary basis from the City's general fund or any other fund from which such advances may be legally made (the "Fund"). Under Minnesota Statutes, Section 469.178, Subd. 7, the City is authorized to advance or loan money from the Fund in order to finance the Qualified Costs. The City intends to reimburse itself for the payment of the Qualified Costs, plus interest thereon, from tax increments derived from the TIF District in accordance with the following terms (which terms are referred to collectively as the "Interfund Loan"):

a. The City shall repay to the Fund from which the Qualified Costs are initially paid, the principal amount of $179,097 (or, if less, the amount actually paid from such fund) together with interest at 5.00% per annum (which is not more than the greater of (i) the rate specified under Minnesota Statutes, Section 270C.40, or (ii) the rate specified under Minnesota Statutes, Section 549.09) from the date of the payment.

b. Principal and interest on the Interfund Loan ("Payments") shall be paid annually on each December 31 commencing with the date the

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tax increments from the TIF District are available and not otherwise pledged to and including the earlier of (a) the date the principal and accrued interest of the Interfund Loan is paid in full, or (b) the date of last receipt of tax increment from the TIF District ("Payment Dates") which Payments will be made in the amount and only to the extent of available tax increments. Payments shall be applied first to accrued interest, and then to unpaid principal.

c. Payments on the Interfund Loan are payable solely from the tax increment generated in the preceding twelve (12) months with respect to the TIF District and remitted to the City by Wright County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1794, as amended. Payments on this Interfund Loan are subordinate to any outstanding or future bonds, notes or contracts secured in whole or in part with tax increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with tax increments.

d. The principal sum and all accrued interest payable under this Interfund Loan are pre-payable in whole or in part at any time by the City without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan.

e. The Interfund Loan is evidence of an internal borrowing by the City in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from tax increment pledged to the payment hereof under this resolution. The Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on the Interfund Loan or other costs incident hereto except out of tax increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on the Interfund Loan or other costs incident hereto. The City shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the termination of the TIF District.

f. The City may amend the terms of the Interfund Loan at any time by resolution of the City Council, including a determination to forgive

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the outstanding principal amount and accrued interest to the extent permissible under law.

The motion for the adoption of the foregoing resolution was duly seconded by member _________________ and upon vote being taken thereon, the following voted in favor thereof:

and the following voted against the same:

Whereupon said resolution was declared duly passed and adopted.

___________________________________ Mayor

ATTEST:

________________________ Administrator

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STATE OF MINNESOTA COUNTY OF WRIGHT CITY OF BUFFALO

I, the undersigned, being the duly qualified and acting Administrator of

the City of Buffalo, Minnesota, DO HEREBY CERTIFY that I have compared the

attached and foregoing extract of minutes with the original thereof on file in my

office, and that the same is a full, true and complete transcript of the minutes of

a meeting of the City Council of said City, duly called and held on the date

therein indicated, insofar as such minutes relate to tax increment financing in

the City.

WITNESS my hand as such City Administrator of the City Council of the City

of St. Michael, Minnesota this 19th day of September, 2019.

___________________________________ City Administrator

CITY COUNCIL CITY OF BUFFALO

WRIGHT COUNTY, MINNESOTA

RESOLUTION OF THE CITY OF BUFFALO CITY COUNCIL FINDING THAT A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREA NO. 2 AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 24 CONFORMS TO THE GENERAL PLANS FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY.

WHEREAS, the Buffalo Housing and Redevelopment Authority (the "HRA") and the City of Buffalo (the "City") have proposed to adopt a Modification to the Redevelopment Plan for Redevelopment Project Area No. 2 (the "Redevelopment Plan Modification") and a Tax Increment Financing Plan for Tax Increment Financing District No. 24 (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Plans") and have submitted the Plans to the City Council (the "Council") pursuant to Minnesota Statutes, Section 469.175, Subd. 3, and WHEREAS, the Council has reviewed the Plans to determine their conformity with the general plans for the development and redevelopment of the City as described in the comprehensive plan for the City. NOW, THEREFORE, BE IT RESOLVED by the Council that the Plans conforms to the general plans for the development and redevelopment of the City as a whole.

Dated: September 16, 2019

_______________________________________ Mayor ATTEST: ___________________________________ City Administrator

MODIFICATION TO THE REDEVELOPMENT PROGRAM

Redevelopment Project Area No. 2

- AND -

TAX INCREMENT FINANCING PLAN Establishment of Tax Increment Financing District No. 24

(a housing district)

Buffalo Housing and Redevelopment Authority City of Buffalo, Wright County, Minnesota

Public Hearing: September 16, 2019

Buffalo Housing and Redevelopment Authority Tax Increment Financing District No. 24 2

Table of Contents Modification to the Development Program for Redevelopment Project Area No. 2 ..................... 3

Foreword ................................................................................................................................ 3

Boundaries of Redevelopment Project Area No. 2 ................................................................. 3

Tax Increment Financing Plan for Tax Increment Financing District No. 24 ................................ 4

Foreword ................................................................................................................................ 4

Statutory Authority .................................................................................................................. 4

Statement of Objectives ......................................................................................................... 4

Development Program Overview ............................................................................................ 4

Description of Property in the District and Property to be Acquired......................................... 5

Classification of the District .................................................................................................... 5

Duration and First Year of Tax Increment of the District ......................................................... 5

Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements ..................................................................... 6

Sources of Revenue/Bonds to be Issued ............................................................................... 7

Uses of Funds ........................................................................................................................ 8

Estimated Impact on Other Taxing Jurisdictions ..................................................................... 8

Supporting Documentation ....................................................................................................10

Administration of the District ..................................................................................................10

Appendix A: Map of Modification to Redevelopment Project.................................................11

Appendix B: Estimated Cash Flow for the District .................................................................12

Appendix C: DRAFT Findings Including But/For Qualifications .............................................13


Modification to the Development Program for Redevelopment Project Area No. 2 Foreword The following text represents a Modification to the Redevelopment Program for Redevelopment Project Area No. 2. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Program for Redevelopment Project Area No. 2. Generally, the substantive changes include enlarging the project area to include the property identified within Appendix A and include the establishment of Tax Increment Financing District No. 24. For further information, a review of the Redevelopment Program for Redevelopment Project Area No. 2, is recommended. It is available from the HRA Executive Director at the City of Buffalo. Other relevant information is contained in the Tax Increment Financing Plans for the Tax Increment Financing Districts located within Redevelopment Project Area No. 2.

Boundaries of Redevelopment Project Area No. 2 The boundaries of Redevelopment Project Area No. 2 are being expanded to include the property proposed to be included within Tax Increment Financing District No. 24 and additional areas adjacent to downtown Buffalo intended for future development and redevelopment. Please see Appendix A for a map of the expanded area.


Tax Increment Financing Plan for Tax Increment Financing District No. 24 Foreword The Buffalo Housing and Redevelopment Authority (the "HRA"), the City of Buffalo (the "City"), staff and consultants have prepared the following information to expedite the establishment of Tax Increment Financing District No. 24 (the "District"), a housing tax increment financing district, located in Redevelopment Project Area No. 2.

Statutory Authority Within the City, there exist areas where public involvement is necessary to cause development or redevelopment to occur. To this end, the HRA and City have certain statutory powers pursuant to Minnesota Statutes ("M.S."), Sections 469.001 - 469.047, inclusive, as amended (the “HRA Act”), and M.S., Sections 469.174 to 469.1794, inclusive, as amended (the "Tax Increment Financing Act" or "TIF Act"), to assist in financing public costs related to this project. This section contains the Tax Increment Financing Plan (the "TIF Plan") for the District. Other relevant information is contained in the Modification to the Redevelopment Program for Redevelopment Project Area No. 2.

Statement of Objectives The District currently consists of three parcels of land and adjacent and internal rights-of-way. The District is being created to facilitate development of 60 units of rental housing in the City. The project under consideration is named the First Avenue Lofts and includes a four-story building with underground parking. The HRA proposes to enter into an agreement with Roers Investments, LLC. as the developer. Development is anticipated to begin in late 2019. This TIF Plan is expected to achieve many of the objectives outlined in the Redevelopment Program for Redevelopment Project Area No. 2. The activities contemplated in the modification to the Redevelopment Program and the TIF Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of Redevelopment Project Area No. 2 and the District.

Development Program Overview Pursuant to the Development Program and authorizing state statutes, the HRA or City is authorized to undertake the following activities in the District: 1. Property to be Acquired - The City currently owns the property within the District. 2. Relocation - Relocation services, to the extent required by law, are available

pursuant to M.S., Chapter 117 and other relevant state and federal laws.


3. Upon approval of a developer's plan relating to the project and completion of the necessary legal requirements, the HRA or City may sell to a developer selected properties that it may acquire within the District or may lease land or facilities to a developer.

4. The HRA or City may perform or provide for some or all necessary acquisition,

construction, relocation, demolition, and required utilities and public street work within the District.

Description of Property in the District and Property to be Acquired The District encompasses all property and adjacent rights-of-way and abutting roadways identified by the parcels listed below.

The area to be included within the TIF District is proposed to be platted as Lot 1, Block 1 Drake’s Addition to Buffalo. Please also see the map in Appendix A for further information on the location of the District. The City currently owns the property to be included in the District.

Classification of the District The HRA and City, in determining the need to create a tax increment financing district in accordance with the TIF Act, find that the District, to be established, is a housing district pursuant to M.S., Section 469.174, Subd. 11 and M.S., Section 469.1761. $ The District consists of three parcels. $ The development will consist of 60 units of multi-family rental housing $ At least 40% of the units will be occupied by person with incomes less than 60% of median

income $ No more that 20 percent of the square footage of the building that is receiving assistance from

tax increment consists of commercial, retail or other non-residential uses. Pursuant to M.S., Section 469.176, Subd. 7, the District does not contain any parcel or part of a parcel that qualified under the provisions of M.S., Sections 273.111, 273.112, or 273.114 or Chapter 473H for taxes payable in any of the five calendar years before the filing of the request for certification of the District.

Duration and First Year of Tax Increment of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration and first year of tax increment of the District must be indicated within the TIF Plan. Pursuant to M.S., Section 469.176, Subd. 1b., the duration of the District will be 25 years after receipt of the first

Parcel number Owner103026002020 City of Buffalo103026009030 City of Buffalo103026009062 City of Buffalo


increment by the HRA or City (a total of 26 years of tax increment). The HRA or City elects to receive the first tax increment in 2022, which is no later than four years following the year of approval of the District. Thus, it is estimated that the District, including any modifications of the TIF Plan for subsequent phases or other changes, would terminate after 2047, or when the TIF Plan is satisfied. The HRA or City reserves the right to decertify the District prior to the legally required date.

Original Tax Capacity, Tax Rate and Estimated Captured Net Tax Capacity Value/Increment and Notification of Prior Planned Improvements Pursuant to M.S., Section 469.174, Subd. 7 and M.S., Section 469.177, Subd. 1, the Original Net Tax Capacity (ONTC) as certified for the District will be based on the market values placed on the property by the assessor in 2019 for taxes payable 2020. Pursuant to M.S., Section 469.177, Subds. 1 and 2, the County Auditor shall certify in each year (beginning in the payment year 2021) the amount by which the original value has increased or decreased as a result of: 1. Change in tax exempt status of property; 2. Reduction or enlargement of the geographic boundaries of the district; 3. Change due to adjustments, negotiated or court-ordered abatements; 4. Change in the use of the property and classification; 5. Change in state law governing class rates; or 6. Change in previously issued building permits. In any year in which the current Net Tax Capacity (NTC) value of the District declines below the ONTC, no value will be captured and no tax increment will be payable to the HRA or City. The original local tax rate for the District will be the local tax rate for taxes payable 2020, assuming the request for certification is made before June 30, 2020. Estimates of the ONTC and the Original Local Tax Rate for the District appear in the table below. Pursuant to M.S., Section 469.174 Subd. 4 and M.S., Section 469.177, Subd. 1, 2, and 4, the estimated Captured Net Tax Capacity (CTC) of the District, within Redevelopment Project Area No. 2, upon completion of the projects within the District, will annually approximate tax increment revenues as shown in the table below. The HRA and City request 100 percent of the available increase in tax capacity for repayment of its obligations and current expenditures, beginning in the tax year payable 2022. The Project Tax Capacity listed is an estimate of values when the projects within the District are completed.


Note: Tax capacity includes a 1.0% inflation factor for the duration of the District. The tax capacity

included in this chart is the estimated tax capacity of the District in year 25. The tax capacity of the District in year one is estimated to be $47,208.

Pursuant to M.S., Section 469.177, Subd. 4, the HRA shall, after a due and diligent search, accompany its request for certification to the County Auditor or its notice of the District enlargement pursuant to M.S., Section 469.175, Subd. 4, with a listing of all properties within the District or area of enlargement for which building permits have been issued during the eighteen (18) months immediately preceding approval of the TIF Plan by the municipality pursuant to M.S., Section 469.175, Subd. 3. The County Auditor shall increase the original net tax capacity of the District by the net tax capacity of improvements for which a building permit was issued. The City is reviewing the area to be included in the District to determine if any building permits have been issued during the 18 months immediately preceding approval of the TIF Plan by the City.

Sources of Revenue/Bonds to be Issued The total estimated tax increment revenues for the District are shown in the table below:

The costs outlined in the Uses of Funds will be financed primarily through the annual collection of tax increments. The HRA or City reserves the right to incur bonds or other indebtedness as a result of the TIF Plan. As presently proposed, the projects within the District will be financed by pay-as-you-go notes and interfund loans. Any refunding amounts will be deemed a budgeted cost without a formal TIF Plan Modification. This provision does not obligate the HRA or City to incur debt. The HRA or City will issue bonds or incur other debt only upon the determination that such action is in the best interest of the City. The HRA or City may issue bonds (as defined in the TIF Act) secured in whole or in part with tax increments from the District in a maximum principal amount of $1,078,803. Such bonds may be in the form of pay-as-you-go notes, revenue bonds or notes, general obligation bonds, or interfund loans. This estimate of total bonded indebtedness is a cumulative statement of authority under this TIF Plan as of the date of approval.

Project estimated Tax Capacity upon completion $60,541

Original estimated Net Tax Capacity $2,077Estimated Captured Tax Capacity $58,465

Original Local Tax Rate 134.1520% Pay 2019

Estimated Annual Tax Increment $78,431

Percent Retained by the City 100%

Project Tax Capacity

SOURCESTax Increment 1,790,974 Interest 89,549

TOTAL 1,880,523


Uses of Funds Currently under consideration for the District is a proposal to facilitate development of 60 units of rental housing. The HRA and City have determined that it will be necessary to provide assistance to the project(s) for certain District costs, as described. The HRA has studied the feasibility of the development or redevelopment of property in and around the District. To facilitate the establishment and development or redevelopment of the District, this TIF Plan authorizes the use of tax increment financing to pay for the cost of certain eligible expenses. The estimate of public costs and uses of funds associated with the District is outlined in the following table.

The total project cost, including financing costs (interest) listed in the table above does not exceed the total projected tax increments for the District as shown in the Sources of Revenue section. Estimated costs associated with the District are subject to change among categories without a modification to this TIF Plan. The cost of all activities to be considered for tax increment financing will not exceed, without formal modification, the budget above pursuant to the applicable statutory requirements. The HRA may expend funds for qualified housing activities outside of the District boundaries.

Estimated Impact on Other Taxing Jurisdictions The estimated impact on other taxing jurisdictions assumes that the redevelopment contemplated by the TIF Plan would occur without the creation of the District. However, the HRA or City has determined that such development or redevelopment would not occur "but for" tax increment financing and that, therefore, the fiscal impact on other taxing jurisdictions is $0. The estimated fiscal impact of the District would be as follows if the "but for" test was not met:

USESLand/Building Acquisition - Site Improvements/Preparation - Affordable Housing 899,706 Utilities - Other Qualifying Improvements - Administrative Costs (up to 10%) 179,097

PROJECT AND INTEREST COSTS TOTAL 1,078,803 Interest 801,720

PROJECT AND INTEREST COSTS TOTAL 1,880,523


The estimates listed above display the captured tax capacity when all construction is completed. The tax rate used for calculations is the Pay 2019 rate. The total net capacity for the entities listed above are based on Pay 2019 figures. The District will be certified under the Pay 2020 rates, which were unavailable at the time this TIF Plan was prepared. Pursuant to M.S. Section 469.175 Subd. 2(b):

(1) Estimate of total tax increment. It is estimated that the total amount of tax increment that will be generated over the life of the District is $1,790,974;

(2) Probable impact of the District on city provided services and ability to issue debt. An

impact of the District on police protection is expected. With any addition of new residents or businesses, police calls for service will be increased. New developments add an increase in traffic, and additional overall demands to the call load. The City does not expect that the proposed development, in and of itself, will necessitate new capital investment in vehicles or facilities.

The probable impact of the District on fire protection is not expected to be significant. Typically, new buildings generate few calls, if any, and are of superior construction. The impact of the District on public infrastructure is expected to be minimal. The development is not expected to significantly impact any traffic movements in the area. The current infrastructure for sanitary sewer and water will be able to handle the additional volume generated from the proposed development. The developer will install adequate underground stormwater retention for its site. Based on the development plans, there are no additional public costs associated with street maintenance, sweeping, plowing, lighting and sidewalks. The development in the

Entity2018/Pay 2019 Total Net Tax

Capacity

Estimated Captured Tax

Capacity (CTC) upon completion

Percent of CTC to Entity Total

Wright County 165,818,717 58,465 0.0353%City of Buffalo 14,034,447 58,465 0.4166%

ISD #877 35,757,211 58,465 0.1635%

Impact on Tax Base

EntityPay 2019

Extension Rate

Percent of Total CTC Potential Taxes

Wright County 39.9700% 30.51% 58,465 23,368City of Buffalo 54.8380% 41.85% 58,465 32,061

ISD #877 34.4890% 26.32% 58,465 20,164Other 1.7270% 1.32% 58,465 1,010Total 131.0240% 100.00% 76,603

Impact on Tax Rates


District is expected to contribute an estimated $400,000 in sanitary sewer (SAC) and water (WAC) connection fees. The probable impact of any District general obligation tax increment bonds on the ability to issue debt for general fund purposes is expected to be minimal. It is not anticipated that there will be any general obligation debt issued in relation to this project, therefore there will be no impact on the City's ability to issue future debt or on the City's debt limit.

(3) Estimated amount of tax increment attributable to school district levies. It is estimated

that the amount of tax increments over the life of the District that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is $471,432;

(4) Estimated amount of tax increment attributable to county levies. It is estimated that the

amount of tax increments over the life of the District that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same, is $546,352;

(5) Additional information requested by the county or school district. The City is not aware

of any standard questions in a county or school district written policy regarding tax increment districts and impact on county or school district services. The county or school district must request additional information pursuant to M.S. Section 469.175 Subd. 2(b) within 15 days after receipt of the tax increment financing plan.

No requests for additional information from the county or school district regarding the proposed development for the District have been received.

Supporting Documentation Pursuant to M.S. Section 469.175, Subd. 1 (a), clause 7 the TIF Plan must contain identification and description of studies and analyses used to make the determination set forth in M.S. Section 469.175, Subd. 3, clause (b)(2) and the findings are required in the resolution approving the District. In making said determination, reliance has been placed upon (1) written representation made by the developer to such effects, (2) review of the developer’s proforma and Housing Tax Credit Financing Application; and (3) City staff awareness of the feasibility of developing the project site within the District, which is further outlined in the City Council resolution approving the establishment of the TIF District and Appendix C.

Administration of the District Administration of the District will be handled by the HRA Executive Director.


Appendix A: Map of Modification to Redevelopment Project Area No. 2 and the TIF District

COM

MER

CE C

IR

BIG

WO

OD

S CT

MILLS WOODS TRL

CEDAR ST E CEDAR ST W

DOUGLAS ST E DOUGLAS ST W

ARLA

ND

AC

IR

HA

ZE

LW

OOD CT

GR

A ND

VIE

WA

VE

NW

GOLDEN

POND CT

GRAN D VIEWCT

14TH NW

WIL

LOW

CR

EEK

CT

LAKE BLVD S

BUFFALOHILLSCIR

HAZELWOODCIR

7TH STCT NW

4TH ST NE

2 ND

AVE

S

5TH

AV

E N

E

Hac

kber

ry

3RD

AVE

NE

1ST STNE NE

1ST ST NE

DIVISION

ST

6TH ST S

2NDST

S

Market Place

OR

R AVE

5TH

AV

E N

W

2ND

AVE NW 1S

TAV

EN

W

Cty Rd12

KENSINGTO

N

WAY

TIM

BER

LN

12TH STNW

CSAH NO 34

CSAH NO 35

Willems Way

Willems Way

3R

D A

VE N

E

8TH

AVE

NE

7TH

AV

E N

E

3RD

AVE

NE

5TH ST NE

MUSTANG BLVD

LAKEVIEW

PKWY

CSA

H N

O 1

2M

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IAN

AVE

CSAH

NO 35

CSAH

NO

35

7TH AVE NW

CSA

HN

O12

7TH

AV

E N

W

Settler's

Parkway

Inga

llsD

rive

Wilde r

Way

Harvest TrailIng

alls

Dr iv

e

MOBILE HOME PARK

(Private)

(Private)

7TH

AV

E N

W

(M.S.A

.

127)

CharlesCourt

(M.S.A. 101)

(M.S

.A.

108)

(M.S.A. 110) 7

TH A

VE

NE

2ND

AVE

NE

2ND

AVE

NW

5TH ST NE

1S

T AV

E N

W

12THST

NE

4TH

AVE

NW

AAD

LAN

D A

VE N

E

(3R

D AVE

NE)

1ST ST NE

2ND STS

DIVISION ST

1ST

AVE

NE

1ST ST S

8TH ST NW6T

HAV

EN

E SUNSET ST

VENDELL ST

6TH

AVE

S

K ENS

ING

TON

WAY

CATLIN

ST

12THST

NW

BUFFALO HILLS

ST

5TH ST S

7TH ST S

CO

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IAL

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8TH

AVE

S

PINE ST

CE

NTE

NN

IAL

DR

TIMBER

LN

10TH AVE S

3RD

AVE

NW

CSAH

NO

12

Willow Glen Ct. (private)

Will

ow G

len

Dr (

priv

ate)

MAN

OR

AVE

ABE

RT

AVE

NE

5TH

AV

E N

W

CROSSROADS CAMPUS DR

13TH

AVE

NE

14TH ST

NE

ARLANDA

AVE

4TH ST NW

UPPLANDA ST

PARK LN

15TH ST NW

WILLOW ST

12THA V

ES

B ISO

NC

RO

SSI

NG

SO

O L

ANE

MONTROSE

BLVD

LAKE BLVD NW

PULASKI RD

BRADSHAW AVE NE

7TH AV

E NW

CR

EEKSID

E DR

1ST ST

SCHUBERTDR

7TH

AV

E S

SPR

UC

E A

VE N

E

LEKSAND

LN

ASP

EN A

VE N

E

J UN

IPE

RLN

4TH

AVE

NE

5TH

AVE

NE

WALNUT ST NE

NORDIC LN

6TH ST NE

LAKEVIEW PKWY

WO

OD

S C

IR

7TH ST NW

IVY RIDGE LN

FR

ON

TAG

E R

D E

POPLAR ST

FRO

NTAG

E RD

W

GRIFFIN G WAY

4TH ST S

WILLOW CREEK LN

GRIFFING PARK RD

4TH

AV

E S

BRIG

HTON

AVES

E

6TH

AV

E N

E

UPPLANDA ST

3RD ST NW

11TH ST NW

2N

D A

VE S

3RD

AVE

NE

6TH

AVE

NW

(Pri v

ate)

GRANDVIEWCIR

(Private)

HAWTHORNAVE

FIR ST E FIR ST W

9TH ST NW

ASH ST E

8TH ST NE

ELM ST E

ASH ST W

BISON CT

LILACC

IR

ELM ST W

CR

EEKSID

E CIR

CAPITA

L DR NE

TIMBER CIR

MILLS C

T

BIRCH ST E BIRCH ST W

MAR

TY D

R

JUN

IPER

L N

STATE HIGHWAY 55 NE

STA

TE H

IGH

WA

Y 25

S

LAKE BLVD S

ST H

WY

25

(CSAH 35)

STATE HIGHWAY 55 W

STATEHIGHW

AY55

E

LAKE BLVD S

CE

NTR

AL

AVE

MIN

NE

SOT A

S TAT

E

HIGH

WAY

25

AN

DER

SON

AVE

IVY RIDGE TER

G AG NEF PL

HEM

LOC

KC

IR

RAT

TVIK

CIR

WILLOW

CIR

3RDST

S

3RD ST NE

3RD ST S

9TH ST NW

7TH

AVE

NE

8TH ST NE

2N

D A

VE S

3RD ST NE

RYAN'S W

AY

5TH ST NE

3RD

AVE

S

9TH ST NE

4TH ST S

2ND ST NE

6TH

AV

E S

8TH ST NE

Car oline Path

7TH ST NE

7TH ST NE

5THST

S

3R

D A

VE N

E

1ST

AVE

S

VENDELL ST

2ND

ST

NW

12TH ST NE

6TH ST NW

GRIFFINGPARK RD

3RD

AVE

NW

6TH

AV

E N

W

5TH

AV

E S

4TH

AV

E N

E

30TH ST NE

PulaskiLake

Redevelopment ProjectArea No. 2

PROPOSEDTIF DISTRICT #24

TIF DISTRICT #23

TIF DISTRICT #21

PROPOSED MODIFICATION OFTIF DISTRICT #22

TIF DISTRICT #14

TIF DISTRICT #15

TIF DISTRICT #20

BuffaloLake

Proposed TIF District #24City of Buffalo

Wright County, Minnesota

0 0.50.25 MilesData Sou rce: Cit y o f B u f f a lo Wright C oun t y , M NDate Cre ated: 1 1 / 0 5 / 2 0 0 9Copyrigh t 2 0 0 9

Aug 1, 2019

ÜRedevelopment Project Area No. 2

LEGEND

Corporate Limits

Buffalo Parcels

Active TIF District

Redevelopment Project Area No. 2Proposed Boundary Addition


Appendix B: Estimated Cash Flow for the District

8/14/2019 Base Value Assumptions - Page 1

First Avenue FlatsCity of Buffalo, MN

60-unit Mixed Income Apartments

ASSUMPTIONS AND RATES

DistrictType: HousingDistrict Name/Number:County District #: Exempt Class Rate (Exempt) 0.00%First Year Construction or Inflation on Value 2020 Commercial Industrial Preferred Class Rate (C/I Pref.)Existing District - Specify No. Years Remaining First $150,000 1.50%Inflation Rate - Every Year: 1.00% Over $150,000 2.00%Interest Rate: 4.80% Commercial Industrial Class Rate (C/I) 2.00%Present Value Date: 1-Feb-20 Rental Housing Class Rate (Rental) 1.25%First Period Ending 1-Aug-20 Affordable Rental Housing Class Rate (Aff. Rental)Tax Year District was Certified: Pay 2020 First $150,000 0.75%Cashflow Assumes First Tax Increment For Development: 2022 Over $150,000 0.25%Years of Tax Increment 26 Non-Homestead Residential (Non-H Res. 1 Unit)Assumes Last Year of Tax Increment 2047 First $500,000 1.00%Fiscal Disparities Election [Outside (A), Inside (B), or NA] NA Over $500,000 1.25%Incremental or Total Fiscal Disparities Incremental Homestead Residential Class Rate (Hmstd. Res.)Fiscal Disparities Contribution Ratio 33.4802% Pay 2019 First $500,000 1.00%Fiscal Disparities Metro-Wide Tax Rate 143.9920% Pay 2019 Over $500,000 1.25%Maximum/Frozen Local Tax Rate: 134.152% Pay 2019 Agricultural Non-Homestead 1.00%Current Local Tax Rate: (Use lesser of Current or Max.) 134.152% Pay 2019 State-wide Tax Rate (Comm./Ind. only used for total taxes) 42.4160% Pay 2019Market Value Tax Rate (Used for total taxes) 0.12807% Pay 2019

Building Total Percentage Tax Year Property Current Class AfterLand Market Market Of Value Used Original Original Tax Original After Conversion

Map ID PID Owner Address Market Value Value Value for District Market Value Market Value Class Tax Capacity Conversion Orig. Tax Cap.1 103026002020 Buffalo 80,100 0 80,100 100% 80,100 Pay 2020 Exempt - Rental 1,001 2 103026009030 Buffalo 172,100 0 172,100 50% 86,050 Pay 2020 Exempt - Rental 1,076 3 103026009062 Buffalo 37,000 0 37,000 0% 0 Pay 2020 Exempt - Rental -

289,200 0 289,200 166,150 0 2,077

Note:1. Base values are for pay 2019 based upon review of County website on 8.14.2019.2. Located in SD # 877.

Area/ Phase

Tax Rates

BASE VALUE INFORMATION (Original Tax Capacity)

Prepared by Ehlers & Associates, Inc. - Estimates Only

8/14/2019 Base Value Assumptions - Page 2



Estimated Taxable Total Taxable Property Percentage Percentage Percentage Percentage First YearMarket Value Market Value Total Market Tax Project Project Tax Completed Completed Completed Completed Full Taxes

Area/Phase New Use Per Sq. Ft./Unit Per Sq. Ft./Unit Sq. Ft./Units Value Class Tax Capacity Capacity/Unit 2020 2021 2022 2023 PayableApartments 91,667 91,667 13 1,191,667 Rental 14,896 1,146 100% 100% 100% 100% 2022Apartments 91,667 91,667 47 4,308,333 Aff. Rental 32,313 688 100% 100% 100% 100% 2022

TOTAL 5,500,000 47,208 Subtotal Residential 60 5,500,000 47,208

Note:1. Market values are based upon County Assessor's estimate on 7.12.2019.

Total Fiscal Local Local Fiscal State-wide MarketTax Disparities Tax Property Disparities Property Value Total Taxes Per

New Use Capacity Tax Capacity Capacity Taxes Taxes Taxes Taxes Taxes Sq. Ft./UnitApartments 14,896 0 14,896 19,983 0 0 1,526 21,509 1,654.56Apartments 32,313 0 32,313 43,348 0 0 5,518 48,866 1,039.69

TOTAL 47,208 0 47,208 63,331 0 0 7,044 70,375Note: 1. Taxes and tax increment will vary significantly from year to year depending upon values, rates, state law, fiscal disparities and other factors which cannot be predicted.

Total Property Taxes 70,375less State-wide Taxes 0less Fiscal Disp. Adj. 0less Market Value Taxes (7,044)less Base Value Taxes (2,786)Annual Gross TIF 60,545

WHAT IS EXCLUDED FROM TIF?

TAX CALCULATIONS

PROJECT INFORMATION (Project Tax Capacity)


8/14/2019 Tax Increment Cashflow - Page 3



TAX INCREMENT CASH FLOWProject Original Fiscal Captured Local Annual Semi-Annual State Admin. Semi-Annual Semi-Annual PERIOD

% of Tax Tax Disparities Tax Tax Gross Tax Gross Tax Auditor at Net Tax Present ENDING Tax PaymentOTC Capacity Capacity Incremental Capacity Rate Increment Increment 0.36% 10% Increment Value Yrs. Year Date

- - - - 08/01/20- - - - 02/01/21- - - - 08/01/21- - - - 02/01/22

100% 47,208 (2,077) - 45,131 134.152% 60,545 30,272 (109) (3,016) 27,147 24,111 0.5 2022 08/01/22100% 47,208 (2,077) - 45,131 134.152% 60,545 30,272 (109) (3,016) 27,147 47,658 1 2022 02/01/23100% 47,680 (2,077) - 45,604 134.152% 61,178 30,589 (110) (3,048) 27,431 70,893 1.5 2023 08/01/23100% 47,680 (2,077) - 45,604 134.152% 61,178 30,589 (110) (3,048) 27,431 93,583 2 2023 02/01/24100% 48,157 (2,077) - 46,080 134.152% 61,818 30,909 (111) (3,080) 27,718 115,973 2.5 2024 08/01/24100% 48,157 (2,077) - 46,080 134.152% 61,818 30,909 (111) (3,080) 27,718 137,839 3 2024 02/01/25100% 48,639 (2,077) - 46,562 134.152% 62,464 31,232 (112) (3,112) 28,007 159,415 3.5 2025 08/01/25100% 48,639 (2,077) - 46,562 134.152% 62,464 31,232 (112) (3,112) 28,007 180,486 4 2025 02/01/26100% 49,125 (2,077) - 47,048 134.152% 63,116 31,558 (114) (3,144) 28,300 201,277 4.5 2026 08/01/26100% 49,125 (2,077) - 47,048 134.152% 63,116 31,558 (114) (3,144) 28,300 221,582 5 2026 02/01/27100% 49,616 (2,077) - 47,540 134.152% 63,775 31,888 (115) (3,177) 28,596 241,617 5.5 2027 08/01/27100% 49,616 (2,077) - 47,540 134.152% 63,775 31,888 (115) (3,177) 28,596 261,183 6 2027 02/01/28100% 50,113 (2,077) - 48,036 134.152% 64,441 32,220 (116) (3,210) 28,894 280,490 6.5 2028 08/01/28100% 50,113 (2,077) - 48,036 134.152% 64,441 32,220 (116) (3,210) 28,894 299,344 7 2028 02/01/29100% 50,614 (2,077) - 48,537 134.152% 65,113 32,557 (117) (3,244) 29,195 317,948 7.5 2029 08/01/29100% 50,614 (2,077) - 48,537 134.152% 65,113 32,557 (117) (3,244) 29,195 336,117 8 2029 02/01/30100% 51,120 (2,077) - 49,043 134.152% 65,792 32,896 (118) (3,278) 29,500 354,044 8.5 2030 08/01/30100% 51,120 (2,077) - 49,043 134.152% 65,792 32,896 (118) (3,278) 29,500 371,551 9 2030 02/01/31100% 51,631 (2,077) - 49,554 134.152% 66,478 33,239 (120) (3,312) 29,807 388,827 9.5 2031 08/01/31100% 51,631 (2,077) - 49,554 134.152% 66,478 33,239 (120) (3,312) 29,807 405,697 10 2031 02/01/32100% 52,147 (2,077) - 50,070 134.152% 67,171 33,585 (121) (3,346) 30,118 422,344 10.5 2032 08/01/32100% 52,147 (2,077) - 50,070 134.152% 67,171 33,585 (121) (3,346) 30,118 438,600 11 2032 02/01/33100% 52,669 (2,077) - 50,592 134.152% 67,870 33,935 (122) (3,381) 30,432 454,641 11.5 2033 08/01/33100% 52,669 (2,077) - 50,592 134.152% 67,870 33,935 (122) (3,381) 30,432 470,306 12 2033 02/01/34100% 53,196 (2,077) - 51,119 134.152% 68,577 34,288 (123) (3,416) 30,748 485,763 12.5 2034 08/01/34100% 53,196 (2,077) - 51,119 134.152% 68,577 34,288 (123) (3,416) 30,748 500,858 13 2034 02/01/35100% 53,727 (2,077) - 51,651 134.152% 69,290 34,645 (125) (3,452) 31,068 515,752 13.5 2035 08/01/35100% 53,727 (2,077) - 51,651 134.152% 69,290 34,645 (125) (3,452) 31,068 530,297 14 2035 02/01/36100% 54,265 (2,077) - 52,188 134.152% 70,011 35,006 (126) (3,488) 31,392 544,649 14.5 2036 08/01/36100% 54,265 (2,077) - 52,188 134.152% 70,011 35,006 (126) (3,488) 31,392 558,665 15 2036 02/01/37100% 54,807 (2,077) - 52,731 134.152% 70,739 35,370 (127) (3,524) 31,718 572,494 15.5 2037 08/01/37100% 54,807 (2,077) - 52,731 134.152% 70,739 35,370 (127) (3,524) 31,718 586,000 16 2037 02/01/38100% 55,355 (2,077) - 53,279 134.152% 71,474 35,737 (129) (3,561) 32,048 599,326 16.5 2038 08/01/38100% 55,355 (2,077) - 53,279 134.152% 71,474 35,737 (129) (3,561) 32,048 612,339 17 2038 02/01/39100% 55,909 (2,077) - 53,832 134.152% 72,217 36,108 (130) (3,598) 32,381 625,180 17.5 2039 08/01/39100% 55,909 (2,077) - 53,832 134.152% 72,217 36,108 (130) (3,598) 32,381 637,720 18 2039 02/01/40100% 56,468 (2,077) - 54,391 134.152% 72,967 36,483 (131) (3,635) 32,717 650,093 18.5 2040 08/01/40100% 56,468 (2,077) - 54,391 134.152% 72,967 36,483 (131) (3,635) 32,717 662,176 19 2040 02/01/41100% 57,033 (2,077) - 54,956 134.152% 73,724 36,862 (133) (3,673) 33,057 674,098 19.5 2041 08/01/41100% 57,033 (2,077) - 54,956 134.152% 73,724 36,862 (133) (3,673) 33,057 685,741 20 2041 02/01/42100% 57,603 (2,077) - 55,526 134.152% 74,490 37,245 (134) (3,711) 33,400 697,229 20.5 2042 08/01/42100% 57,603 (2,077) - 55,526 134.152% 74,490 37,245 (134) (3,711) 33,400 708,447 21 2042 02/01/43100% 58,179 (2,077) - 56,102 134.152% 75,262 37,631 (135) (3,750) 33,746 719,517 21.5 2043 08/01/43100% 58,179 (2,077) - 56,102 134.152% 75,262 37,631 (135) (3,750) 33,746 730,327 22 2043 02/01/44100% 58,761 (2,077) - 56,684 134.152% 76,043 38,021 (137) (3,788) 34,096 740,993 22.5 2044 08/01/44100% 58,761 (2,077) - 56,684 134.152% 76,043 38,021 (137) (3,788) 34,096 751,409 23 2044 02/01/45100% 59,349 (2,077) - 57,272 134.152% 76,831 38,416 (138) (3,828) 34,450 761,687 23.5 2045 08/01/45100% 59,349 (2,077) - 57,272 134.152% 76,831 38,416 (138) (3,828) 34,450 771,723 24 2045 02/01/46100% 59,942 (2,077) - 57,865 134.152% 77,627 38,814 (140) (3,867) 34,807 781,626 24.5 2046 08/01/46100% 59,942 (2,077) - 57,865 134.152% 77,627 38,814 (140) (3,867) 34,807 791,297 25 2046 02/01/47100% 60,541 (2,077) - 58,465 134.152% 78,431 39,216 (141) (3,907) 35,167 800,839 25.5 2047 08/01/47100% 60,541 (2,077) - 58,465 134.152% 78,431 39,216 (141) (3,907) 35,167 810,157 26 2047 02/01/48

Total 1,797,445 (6,471) (179,097) 1,611,877 Present Value From 02/01/2020 Present Value Rate 4.80% 903,427 (3,252) (90,017) 810,157



Appendix C: DRAFT Findings Including But/For Qualifications

The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Tax Increment Financing District No. 24, as required pursuant to Minnesota Statutes, Section 469.175, Subdivision 3 are as follows: 1. Finding that Tax Increment Financing District No. 24 is a housing district as defined in

M.S., Section 469.174, Subd. 11.

TIF District No. 24 consists of three parcels. The development will consist of 60 units of mixed-income rental housing, all or a portion of which will receive tax increment assistance and will meet income restrictions described in M.S. 469.1761. At least 40 percent of the units receiving assistance will have incomes at or below 60 percent of area median income.

2. Finding that the proposed development, in the opinion of the City Council, would not

reasonably be expected to occur solely through private investment within the reasonably foreseeable future.

This finding is supported by the fact that the development proposed in this plan is a housing district that meets the City's objectives for development and redevelopment and is intended for occupancy, in part, by low- and moderate-income persons. 47 of the units will be both rent and income restricted, with seven of the same receiving operating subsidies, which means that rental revenues are insufficient to make the project economically feasible without public assistance. The necessity of public assistance is true for most affordable rental housing developments in Minnesota. Land acquisition and construction costs are the same for affordable housing as they are for market rate projects. Due to the costs of building affordable new housing in the City, this project is feasible only though assistance, in part, from tax increment financing. The affordable project also requires public assistance beyond tax increment. The developer has applied for, and received, an allocation of federal Low-Income Housing Tax Credits (LIHTC) and other assistance from the Minnesota Housing Finance Agency (MHFA). The City’s expectation of providing assistance allowed this project to score high enough among other MHFA applicants to be awarded the tax credits. Therefore, the tax increment assistance is also necessary in order to leverage additional funding resources and the federal subsidy provided. The developer has provided its project budget and financial projections that demonstrate the need for tax increment assistance as described in the TIF Plan.

3. Finding that the TIF Plan for Tax Increment Financing District No. 24 conforms to the general plan for the development or redevelopment of the municipality as a whole.

The Planning Commission will review the TIF Plan and provide the City written opinion whether the TIF Plan conforms to the general development plan of the City.

4. Finding that the TIF Plan for Tax Increment Financing District No. 24 will afford maximum

opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Redevelopment Project Area No. 2 by private enterprise.


Through the implementation of the TIF Plan, the City will provide an impetus for residential development which is desirable or necessary for meeting housing needs of people with a variety of incomes, increased population demands, and an increased need for life-cycle housing within the City.

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LOUCKS

SHEET 1 OF 2 SHEETS

KNOW ALL PERSONS BY THESE PRESENTS: That City of Buffalo, a Minnesota municipal corporation, fee owner of the following

described property situated in the County of Hennepin, State of Minnesota, to wit:

North Half of Lot 1, all of Lots 2, 3 and 4, and the South 54.00 feet of Lot 5, Block 2; Lots 1 and 2 and the South 54.00 feet of

Lot 3, Block 9; and also the West Half of the vacated alley lying East of the North Half of Lot 1, all of Lots 2, 3, 4 and the South

54.00 feet of Lot 5, Block 2; and the East Half of the vacated alley lying West of Lots 1 and 2 and the South 54.00 feet of Lot

3, Block 9; all in Drake's Addition to Buffalo, Wright County, Minnesota.

Has caused the same to be surveyed and platted as BUFFALO APARTMENTS, and does hereby dedicate to the public for public

use the public way(s) and the drainage and utility easements as created by this plat.

In witness whereof said City of Buffalo, a Minnesota municipal corporation, has caused these presents to be signed by its proper

officer this _______ day of _________________________, 20______.

CITY OF BUFFALO

By: __________________________________________ __________________________________________

Signature Printed Name, Title

STATE OF ______________________

COUNTY OF ____________________

This instrument was acknowledged before me on this ________ day of _________________________, 20______, by

________________________, as_________________________ of City of Buffalo, a Minnesota municipal corporation, on behalf of the

corporation.

______________________________________________ ______________________________________________

Signature Printed Name, Notary

Notary Public, _______________________ County, ______________________

My Commission Expires _________________________

SURVEYORS CERTIFICATION

I, Henry D. Nelson, do hereby certify that this plat was prepared by me or under my direct supervision; that I am a duly Licensed

Land Surveyor in the State of Minnesota; that this plat is a correct representation of the boundary survey; that all mathematical data

and labels are correctly designated on this plat; that all monuments depicted on this plat have been, or will be correctly set within

one year; that all water boundaries and wet lands, as defined in Minnesota Statutes, Section 505.01, Subd. 3, as of the date of this

certificate are shown and labeled on this Plat; and all public ways are shown and labeled on this plat.

Dated this ________ day of _________________________, 20______.

______________________________________________

Henry D. Nelson, Licensed Land Surveyor,

Minnesota License No. 17255

STATE OF MINNESOTA

COUNTY OF HENNEPIN

The foregoing Surveyor's Certificate was acknowledged before me this ________ day of _________________________, 20______, by

Henry D. Nelson, Land Surveyor, Minnesota License No. 17255.

______________________________________________ ______________________________________________

Signature Printed Name, Notary

Notary Public, Hennepin County, Minnesota

My Commission Expires January 31, 2020

CITY COUNCIL, CITY OF BUFFALO, MINNESOTA

This plat of BUFFALO APARTMENTS was approved and accepted by the City Council of the City of Buffalo, Minnesota, at a regular

meeting thereof held this ________ day of _________________________, 20______, and said plat is in compliance with the provisions

of Minnesota Statutes, Section 505.03, Subdivision 2.

City Council, Buffalo, Minnesota

By: ________________________________________, Mayor By: _________________________________________, Clerk

WRIGHT COUNTY SURVEYOR

I hereby certofy that in accordance with Minnesota Statutes, Section 505.021, Subd. 11, this plat has been reviewed and approved

this ________ day of _________________________, 20______.

By: ________________________________________

Wright County Surveyor

WRIGHT COUNTY AUDITOR/TREASURER

Pursuant to Minnesota Statutes, Section 505.021, Subd. 9, taxes payable in the year 20______, on the land hereinbefore described

have been paid. Also pursuant to Minnesota Statutes, Section 272.12, there are no delinquent taxes and transfer entered this

________ day of _________________________, 20______.

By: ________________________________________ By: _________________________________________

Wright County Auditor/Treasurer Deputy

WRIGHT COUNTY RECORDER

I hereby certify that this instrument was filed in the office of the County Recorder for record on this ________ day of

_________________________, 20______, at ______ o'clock _____.M., and was duly recorded in Cabinet No. ______________, Sleeve

________________, as Document No. ____________________.

By: ________________________________________ By: _________________________________________

Wright County Recorder Deputy

WRIGHT COUNTY REGISTRAR OF TITLES

Certificate No. ________________, __________________

I hereby certify that this instrument was filed in the office of the Registrar of Titles for record on this ________ day of

_________________________, 20______, at ______ o'clock _____.M., and was duly recorded in Cabinet No. ______________, Sleeve

________________, as Document No. ____________________.

By: ________________________________________ By: _________________________________________

Wright County Registrar of Titles Deputy

N

LOUCKS

SECTION 30, TOWNSHIP 120, RANGE 25,

WRIGHT COUNTY, MINNESOTA

VICINITY MAP

N

NOT TO SCALE

SHEET 2 OF 2 SHEETS

BEING 5 FEET IN WIDTH, UNLESS OTHERWISE

INDICATED AND ADJOINING LOT LINES, AND

BEING 10 FEET IN WIDTH, UNLESS OTHERWISE

INDICATED, AND ADJOINING RIGHT-OF-WAY

LINES, AS SHOWN ON THE PLAT.

DRAINAGE AND UTILITY EASEMENTS ARE

SHOWN THUS: (NOT TO SCALE)

BEARINGS ARE BASED ON THE NORTH-SOUTH

QUARTER LINE OF SEC 30, TWP 120, RNG 25

HAVING A BEARING OF SOUTH 0°04'09 WEST.

DENOTES FOUND 1/2 INCH OPEN IRON

MONUMENT, UNLESS OTHERWISE SHOWN

DENOTES FOUND WRIGHT COUNTY

CAST IRON MONUMENT

DENOTES 1/2 INCH X 14 INCH IRON

MONUMENT SET, MARKED "LS 17255"

SCALE IN FEET

0 20

1 INCH = 20 FEET

DENOTES PLAT OF DRAKE'S ADDITION TO

BUFFALO

"DAB"

CE

NT

RA

L A

VE

SITE

H

W

Y

5

5

5TH ST

L

A

K

E

B

L

V

D

3RD ST

4T

H A

VE

B U F F A L O

L A K E

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To: Merton Auger, City of Buffalo From: Nick Anhut, Ehlers and Associates Date: September 11, 2019 Re: 2020 Recreational Facility Financing Options 2020 Recreational Facility Financing The City of Buffalo is contemplating improvements to its Ice Arena and construction of a new baseball facility. In discussions with staff, the preference is to finance these projects with bonds to be repaid from a tax levy. This approach is consistent with city practices for the existing ice arena debt and other large capital projects for streets and facilities. As the projects are in preliminary planning stages, we have not included any cost assumptions. Bonding – Statutory Authority The ability of a City to undertake projects, issue bonds and levy taxes is governed by state law. When a city issues bonds, the repayment is usually through user fees, property taxes, special assessments, or any combination of these. To secure the repayment, the City may choose to offer its highest security through a general obligation pledge of its full faith and credit, or restrict the source of repayment through a limited or special obligation. Backed by an unconditional tax levy, the City’s general obligation pledge has carried its highest credit rating (S&P “A+”) and access to lower interest costs and favorable bond terms including: 100% financing, flexible amortization structures, and no need for debt service reserves. Even if the repayment source is strong, a limited or special obligation generally carries higher interest costs as the certainty of repayment is lower without the unconditional levy pledge to back it up. Below is a brief outline of the typical financing options for municipal recreational facility projects like the ones under consideration. The property taxes needed to support repayment for these options are based on levies applied to the net tax capacity of the City. General Legal Authority; Financing All Municipal Projects 1. Issuance of General Obligation Bonds pursuant to Minnesota Statutes, Chapter 475. Without a determination to proceed through one of several statutory exceptions, an election is required to be held on the issuance of general obligation bonds.

• The longest part of the election process is the allowance of a forty-nine-day notification to the County Auditor.

• The required ballot language assumes that the entire debt service is paid from ad valorem taxes on all taxable property within the City.

• If the City chooses on an annual basis, a portion of the bonds could be paid from other sources and the City-wide ad valorem tax levy could be reduced.

• The bonds are subject to the statutory net debt limit, with few exceptions. Below is a calculation of the City’s current Net Debt Limit.

A s s e s s o r 's E s t im a te d M a rk e t V a lu e 1 ,3 1 4 ,4 3 5 ,4 0 0

M u lt ip ly b y 3 % 0 .0 3

S ta tu to ry D e b t L im it 3 9 ,4 3 3 ,0 6 2

L e s s : D e b t P a id S o le ly f ro m T a xe s 2 2 ,8 0 0 ,0 0 0

U n u s e d D e b t L im it 1 6 ,6 3 3 ,0 6 2

C ity o f B u ffa lo N e t D e b t L im it

• The Net Debt Limit generally applies solely to 100% tax supported debt of which most of the City’s debt is excluded as portions of those bonds are paid by a pledge of non-property tax revenues (water fees, sewer fees, abatements, etc.).

Specific Legal Authority; Financing Public Facilities 2. Issuance of General Obligation Abatement Bonds pursuant to Minnesota Statutes, Sections 469.1812 to 469.1815. If the City determines to proceed under the Abatement Authority, an election is not required when issuing bonds. Tax abatement is a tool a local government can use to finance public improvements or public facilities, as well as a form of assistance for new development or redevelopment. Municipalities can issue general obligation bonds to finance public improvements without a referendum if at least principal on those bonds is repaid with a tax abatement levy. Various examples of projects Minnesota cities have financed under this statutory authority include: land acquisition for parks, swimming pools and recreation facilities, parking infrastructure, civic centers, expansion of major intersections, and stoplights. The city has used abatement authority to finance the Trailblazer facility, golf course, and downtown public improvements. To meet the requirements for the referendum exemption, the following qualifications must be met:

• The city must identify property within its taxing jurisdiction whose city taxes add up to at least the proposed abatement bond principal amount over a period of up to 20 years.

• A public hearing is held with at least ten days published notice. • The total amount of the abatement must be designated in the public hearing notice and adopting

resolution, but it is not subject to periodic review by the City afterward. This item is included in the statute to allow for unforeseen fluctuations in the tax base or tax revenues.

• The benefited project or infrastructure does not need to be on or adjacent to the parcel for which taxes are being abated. The City must make a finding that the public benefits at least equal the costs of the proposed improvement, and that the abatement is in the public interest for at least one of the following reasons:

1. Increase or preserve tax base 2. Provide employment opportunities 3. Provide or help acquire or construct public facilities 4. Redevelop or renew blighted areas 5. Provide access to services for residents 6. Provide public infrastructure 7. Phase in a property tax increase, in specific circumstances 8. Stabilize the tax base

• The annual abatement levy for all GO Abatement bonds and Economic Development projects must not exceed 10% of the City’s Net Tax Capacity. Below is a calculation of the City’s current Annual Abatement Limit:

C ity N e t T a x C a p a c ity 1 4 ,1 1 6 ,0 9 8

M u lt ip ly b y 1 0 % 0 .1 0 0 0

A n n u a l A b a te m e n t L im it 1 ,4 1 1 ,6 1 0

L e s s : E x is t in g A b a te m e n t O b lig a t io n s (6 7 0 ,0 0 0 )

U n u s e d A n n u a l L im it 7 4 1 ,6 1 0

A n n u a l A b a te m e n t L im it

To provide some perspective: for a 20 year general obligation bond this annual limit could support over $10 million in new project costs at conservative estimates of today’s market

interest rates. Tax abatement bonds are excluded from the calculation of the City’s statutory Net Debt Limit. Despite its name, tax abatement for public improvements is simply an allocation of property tax revenue rather than an exemption from paying taxes. The property included within the abatement area continues to pay its taxes in full just as any other property within the City. The amount is collected by the County and remitted to the City along with its annual tax settlements. The amount attributed to the abatement, however, is redirected to a specific project rather than general funds. For bonds issued to finance public improvements or public facilities, the abatement is used to repay principal and/or interest just like the city’s other debt levies. The abatement will not show up as a separate line item on a tax notice. A final consideration is that taxes on a parcel may not be abated while the parcel is located within a tax increment district. 3. HRA or City lease arrangement under Minnesota Statutes, Section 465.71. If the City determines to proceed under Section 465.71, an election is not required. The City or its Housing and Redevelopment Authority could provide financing through a direct lease arrangement securing the issuance of lease-revenue bonds negotiated with a financing partner. The lease revenue bonds are not a general obligation but a special obligation payable solely from lease revenues annually appropriated by the City. This means that the City has the ability to annually levy for lease payments while reserving the right to annually terminate the lease, without penalty. Rating agencies typically rate lease revenue bonds for essential purpose municipal facilities like a fire station one notch lower than the City’s general obligation rating, but two notches below for “non-essential” facilities like ice arenas or other recreational facilities. Because of the termination risk and rating, the City could see interest rates at least .15% to as much as .50% above a general obligation bond rates with this type of financing. The HRA has used this form of financing for the City’s ice arena. If the City determines to proceed under the direct lease financing method, the following points should be noted:

• Leases purchase obligations in excess of $1,000,000 are subject to the statutory net debt limit. • Lease Revenue Bondholders will typically require establishing a Trust for the life of the bond

issue, as well as requiring a ground lease or mortgage interest in the designated property. • A public hearing may be required for approval of a redevelopment plan.

Considerations Tax-Exempt Financing Reimbursement Regulations Under federal law, a municipality is allowed to use money from its general fund to pay for certain project costs before tax-exempt bonds are issued only after passing what is called a “reimbursement resolution” and then making a declaration of intent to reimburse itself from future bonds. The City should consider whether it intends to reimburse funds for preliminary expenditures for acquisition or construction and include a declaration when identifying project costs, feasibility, or preliminary design. Refinancing Existing Debt The City also has several outstanding bond issues which may provide savings or restructuring opportunities in 2020. Each set of bonds carries a “call date” when the city has the option to either prepay the existing balance without penalty or refund it (for interest savings or to change the payment structure). Refundings may be issued alongside other bonds with similar security to avoid duplicating some issuance costs or separately if market conditions prove more favorable. Savings on the HRA 2011 Lease Revenue Bonds may be maximized through conversion to a general obligation bond after a Tax Abatement public hearing process. Or, could be pursued alongside a new lease revenue financing for the ice arena. As current interest

rates are below 3%, refunding any of the issues identified in the following chart may potentiallyoffer the opportunity to reduce the City’s debt service expenses.

Bonds Call Date Refunding Balance Rates

Series 2010C 2/1/2020 $1,515,000 3.00% - 3.80%

Series 2011A 2/1/2021 $3,245,000 2.60% - 3.15%

Series 2011B 8/1/2021 $2,565,000 3.05% - 4.30%

HRA Series 2011 2/1/2019 $1,590,000 3.65% - 4.60%

Series 2012C 2/1/2022 $1,525,000 2.20% - 3.20%

We look forward to discussing the City’s new financing and refunding opportunities with youfurther.

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City Council Minutes September 3, 2019

Pursuant to due call and notice thereof, the City Council of the City of Buffalo, Minnesota, held a regular meeting in the City Center on the 3rd day of September 2019 at 7:00 p.m. The following members were present: Teri Lachermeier, Scott Enter, Eric Anderson, Steve Downer and Linda Kittock. Also in attendance were Administrator Merton Auger, Assistant Administrator Laureen Bodin, Planning and Development Coordinator Jennifer Nash, Chief of Police Pat Budke, Engineer/Project Manager Justin Kannas of Bolton and Menk, Nick Anhut of Ehlers and Associates and Videographer Quincy Kabe. ANNOUNCEMENTS Mayor Lachermeier announced the quiet zone has been established and implemented with training of the railroad engineers. There will be inadvertent horns at times but process for railroad quiet zones has been completed. She thanked volunteers involved with the Blessing Closet distribution at Zion Lutheran Church which was a big success. The Street Party of Hope will be Thursday, September 12th in downtown Buffalo. Council Member Kittock announced that the ISD #877 operating referendum begins with voting by absentee at Discovery School on Friday, September 20. Questions may be directed to Anita Underberg at 763-682-8706. Information is available on their website at www.bhmschools.org. Election day voting will be at Buffalo High School, Hanover City Hall and Montrose Community Center on November 5. Council Member Enter said school busses are out so watch for stop arms, children and let’s keep everyone safe. Classics by the Lake is this Saturday, September 7 from 10:00 a.m.-2:00 p.m. at Sturges Park. OPEN FORUM There was no one in attendance for the open forum portion of the meeting.

http://www.bhmschools.org/

September 3, 2019 City of Buffalo Council Minutes COUNCIL REPORTS AND RECOGNITION Parks Advisory Board Council Member Kittock said that absent for the last meeting were Chairman Martyn Dibben, Co-Chair Bridgette Lindeman-Bernstrom, as well as back up for both the chair and co-chair Jud Goerss and Victor Florell. Five members were present, enough for a quorum. Board Member Dan Ackmann volunteered to run the meeting. She reported that during the open forum Sue Mattson shared her opinion on a new rotation schedule for all Park Advisory Board Members. Years of past and present members, months of board members’ attendance

recorded by Mattson. Mattson also stated certain board member should be rotated out, herself included. First Avenue Lofts Park Dedication discussion on this was for the Park Advisory Board members only. She said that a group of people took this to the next level and that was clearly a strategic attempt to manipulate and influence all Park Advisory Board Members with their issues that surround the First Avenue Lofts project. All questions and complaints were answered by her to the best of her knowledge. Acting Chair Dan Ackmann did his very best to control the situation. Acting Chair Ackmann, Member Volk and Kittock basically stated to this group that this doesn’t

have anything to do with the First Avenue Lofts park dedication. She made a motion to vote on the park dedication. The vote was four to one in favor to give credit for public use and no credit to be given for private use. On the park survey discussion, no decision was made. Information has been gathered but not completed yet. Gary Mattson Park improvements were discussed. Curb was removed and more work is to be done to the park. She said she will be continuing her work as a Council Liaison for the Park Advisory Board and suggested to stop spreading rumors that she resigned. APPROVAL OF AUGUST 19 MINUTES, CLAIMS AND PAYROLLS Upon motion by Council Member Enter, motion seconded by Council Member Kittock to approve of the August 19 minutes, Council Members Anderson and Downer abstained, motion carried on three votes to approve of the August 19 minutes.

City of Buffalo Council Minutes September 3, 2019 Upon motion by Council Member Anderson, motion seconded by Council Member Downer to approve of the following claims and payrolls, all members voted in favor.

BENTFIELD MILLS RECREATION AREA IMPROVEMENTS Seth James of the Buffalo Baseball Association spoke to the City Council of the recent successes of local teams as well as appreciation for earlier work done with the Bolton & Menk feasibility study. A few groups have provided financial aid and/or commitment including Curt Miller of Buffalo Mini Storage for audio equipment totaling $2 800, $15,000 ($1,000 per year for 15 years) from Randy Haskins of Old National Bank for the new scoreboard signage. Rick Briggs of Buffalo Bail Bonds has committed $5,000. James spoke of the success of the Buffalo teams this past season and of the Town Ball series experience produced by Fox Sports. He thanked several people for their partnership including the Buffalo Ball Association, the Legion and the Buffalo Bulldogs, three local non-profits. He said it will take a lot to make this plan work. The sub-state 15 tournament has been awarded to Buffalo next July 2020 if it can be pulled off. Grindstone Construction has committed that it is possible to make this work. Council Member Downer asked what needs to be done to make this happen next year. A concession stand, fully functioning restrooms, press box, lights and a preliminary fence/gates to control people are the required components. Can the fence and lights be installed later he

Council Meeting ~09-02-2019

Payroll Dates Paid Date

08/11-08/24/2019 PAYROLL 8/29/2019 Payroll = $283,197.45

Paid Date

Payroll =

A/P Check Runs EFT/DRAFTS Checks Total Check Numbers

8/15/2019 244,807.30 244,807.30 117204-1172058/20/2019 12,799.09 12,799.09 1172078/29/2019 116,480.97 2,751.43 119,232.40 117208-1172128/28/2018 4,154.67 811,132.78 815,287.45 117213-117408

Grand Total 1,192,126.24

Payroll Witholding ~ Incl in Payroll

Payroll Witholding ~ Incl in Payroll

September 3, 2019 City of Buffalo Council Minutes questioned. Engineer Kannas responded that with proper planning it could be done. The total cost would be $814,000 per the report of Bolton & Menk. Mayor Lachermeier said the City needs to meet the criteria for improving public facilities and explore the feasibility of the project. The City must bid out any costs over certain dollar amounts and evaluate their financing mechanism. The first step with the timeline of a commitment by October 1st will be challenging. Administrator Auger committed to work on this for consideration by the Council at their next meeting on September 16. Phase two is the phase in which the baseball group is advocating of the three-phase proposal. Auger said he will look at a two-pronged approach one with and the other without grant funding but to review the project in totality of the phases. Council Member Anderson said a lot of other groups will benefit by the improvements. James said the proceeds from the tournament in Delano totaled somewhere around $75,000 to $100,000 and they could donate the proceeds back to the project. He stated they could donate proceeds from future tournaments for the improvements. The Council supports furthering the study for further consideration at the Council meeting of September 16th. PUBLIC HEARING - TAX INCREMENT FINANCING PLAN, WHIRLTRONICS Whirltronics proposes to add an additional 20,000 square feet production area to their lawn-mower blade manufacturing company at 208 Centennial Drive. They have applied for a modification of the existing TIF district to add the additional parcel that they have acquired from the adjoining property owner. The Housing & Redevelopment Authority recommends adoption of the TIF modification and plan as proposed. Nick Anhut from Ehlers and Associates reviewed the TIF plan for Whirltronics.

City of Buffalo Council Minutes September 3, 2019 What is Tax Increment Financing?

• The ability to capture and utilize most of the increased local property tax revenue from new development within a defined geography

• Ex) Taxes derived from a school operating referendum are not captured

• Authorized by Minnesota Statutes 469.174 to 469.1794 • Used to encourage certain types of development or

redevelopment that would not reasonably occur without assistance (“But For” test)

• Ex) Site Acquisition or Improvements for Manufacturing Expansion

• Annual Reporting to the Office of State Auditor • Requires Council public hearing and adoption of a Tax Increment

Financing Plan within a Redevelopment Project Area • Redevelopment Plan and TIF Plan declare policy objectives

and set budget for TIF revenues and expenditures • Fiscal Impact analysis sent to County and School District for

comment • TIF Plan originally adopted in 2015 • Modification to the TIF Plan is being presented for review by

the HRA prior to City Council’s September 3rd public hearing • Actual terms and use of TIF governed by a contract between City

and Developer • “TIF Assistance Agreement” (for consideration in September)

Economic Development TIF District • Buffalo has one active for the Whirltronics Facility

• TIF No. 22 - established in 2015 for initial expansion. • Maximum term – 8 years after first TIF revenue received (2017) • Primary purpose of TIF assisted costs must be to enable new

development of manufacturing, warehouse or distribution • TIF used to finance site preparation and/or infrastructure costs • Business subsidy – required job/wage goals

Tax Increment Request • Expand the boundary for the TIF District to encompass expansion

o Parcels 103-089-002013 and 103-089-002017 o Keep Maximum term: up to 2025 as long as qualifications are

met • Increase Budget for the TIF District

o Assessor’s estimated value of $3.76 million total ($1 million

increase)

September 3, 2019 City of Buffalo Council Minutes

o TIF revenue estimate supports financing up to $100,000 of site costs (includes 1% inflator)

• Form of Financing - Pay-As-You-Go TIF Note issued for expansion o Payable only from 90% of annual TIF received semi-

annually o Equates to additional $24,450 annually (based on

Assessors estimate of increase to market value) o 10% retained to offset City Administrative costs

($2,718) TIF In Buffalo-Six existing TIF Districts: (max term)

• TIF 14 Village Place (2002 to 2027) • TIF 15 Loberg; decertifies by 2028 or until satisfied • TIF 20 Grandview – (2012 to 2037) • TIF 21 Pfeiffer Redevelopment; (2016 to 2041) • TIF 22 Whirltronics – modification; (2017 to 2025) • TIF 23 Havenwood – under development

2019 total captured tax capacity = $81,651 (0.58% of City tax base) No statutory limitation, but cities typically have 2-5% of tax base Additional Considerations

In total, represents: 2.2x growth in property value and local taxes at

completion of TIF District in 2025 Captured Tax Capacity represent 0.29%

of local tax base “But For” Test

• The development is only possible but for the use of tax increment assistance

• Whirltronics has stated the expansion will not proceed solely through private investment in the reasonably foreseeable future

• $2.5 million total development cost ($394,500 site costs) • Seeking other public grant sources in addition to TIF

TIF Assistance Agreement • City Requirements

• Amend TIF District No. 22; re-certify it with the County • Second PAYGO TIF Note reimburses certain development

costs

Property Tax City County Misc School School Op State-wideValue Capacity Portion Portion Districts District Referendum Taxes

57.1990% 44.2730% 1.7270% 30.9530% 0.1281% 42.4160%

Existing $30,678 $23,745 $926 $16,601 $3,482 $22,113 $97,547Expansion $1,040,800 20,816 $11,907 $9,216 $359 $6,443 $1,333 $8,829 $38,087

Gross Taxes $3,760,000 74,450 $42,585 $32,961 $1,286 $23,045 $4,815 $30,942 $135,634Base Taxes $1,708,400 33,418 $19,115 $14,795 $577 $10,344 $4,815 $30,942 $80,589Potential TIF $2,051,600 $41,032 $23,470 $18,167 $709 $12,701 $0 $0 $55,045

TAX BREAKDOWN - City of Buffalo - Whirltronics TIF No. 22

TOTAL

$2,719,200 53,634

City of Buffalo Council Minutes September 3, 2019

• Risk placed on developer to fund and construct project; pay taxes

• No up-front funding required • New TIF Note’s payments only until TIF District No. 22

expires (2025) • Developer Requirements

• Develop site and prove up anticipated costs • Meet requirements of City’s land Use or site restrictions • Annual business subsidy reporting compliance

• Create 4 new jobs of at least $17.11 wage Additional Considerations – Alternatives

• Do not approve TIF • Facility expansion does not occur in the near-term • Existing property taxes payoff TIF Note 1 through 2025 term

• Approve TIF • TIF Assistance Agreement executed • Developer begins construction to be completed in 2019 • 20,000 new manufacturing expansion and at least 4-6 new

jobs • New increment captured within TIF District until both 1

st and

2nd

PAYGO TIF Notes are serviced Anhut noted the HRA’s recommendation will be forwarded to the City

Council for action at an upcoming meeting. A motion was made by Member Anderson and seconded to approve the TIF plan for Whirltronics expansion as presented. All in favor. Motion carried. Mayor Lachermeier called for public comment. No comments or questions were heard and she closed the public hearing.

Council Member Downer introduced the following resolution and moved its adoption.

RESOLUTION APPROVING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT AREA NO. 2; EXPANDING TAX INCREMENT FINANCING DISTRICT NO. 22 AND APPROVING A MODIFICATION TO THE

TAX INCREMENT FINANCING PLAN THEREFOR


A. WHEREAS, the City Council of the City of Buffalo (the City") and the Board of Commissioners of the Buffalo Housing and Redevelopment Authority (the "HRA") have heretofore established Redevelopment Project Area No. 2 and adopted the Redevelopment Plan therefor. It has been proposed by the HRA and the City that the City adopt a modification to the Redevelopment Plan (the "Redevelopment Plan Modification") for Redevelopment Project Area No. 2 (the "Project Area") and expand Tax Increment Financing District No. 22 (the "TIF District") therein and adopt a modification to the Tax Increment Financing Plan (the "TIF Plan") therefor (the Redevelopment Plan Modification and the TIF Plan are referred to collectively herein as the "Modifications"); all pursuant to and in conformity with applicable law, including Minnesota Statutes, Sections 469.001 through 469.047, Sections 469.090 through 469.1082, and Sections 469.174 to 469.1794, all inclusive, as amended, (the "Act") all as reflected in the Modifications, and presented for the Council's consideration.

B. WHEREAS, the HRA and City have investigated the facts relating to the Modifications and have caused the Modifications to be prepared.

C. WHEREAS, the HRA and City have performed all actions required by law to be performed prior to the approval of the Modifications, including, but not limited to, a review of the Planning Commission of the proposed Modifications, a review of the HRA of the proposed Modifications, notification of Wright County and Independent School District No. 877 having taxing jurisdiction over the property to be included in the TIF District, and the holding of a public hearing upon published and mailed notice as required by law; and

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Buffalo:

1. Project Area and Redevelopment Plan Modification. The City is not modifying the boundaries of the Project Area, however it is modifying the Redevelopment Plan therefor.

2. The TIF District. The City has heretofore established the TIF District within the Project Area on June 1, 2015. The TIF District is hereby enlarged to include parcels 103-089-002013 and 103-089-002017.


3. The TIF Plan. The TIF Plan is adopted as the tax increment financing plan for TIF District, as enlarged, and the City Council makes the following findings:

a. The TIF District remains an economic development district as defined in Minnesota Statutes, Section 469.174, Subd. 12, the specific basis for such determination is set forth in Appendix C of the TIF Plan.

b. The proposed development in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The reasons for such determination are set forth in Appendix C of the TIF Plan.

c. The TIF Plan for the TIF District, as enlarged, conforms to the general plan for development or redevelopment of the City as a whole. The reasons for supporting this finding are set forth in Appendix C of the TIF Plan.

d. The TIF Plan for the TIF District, as enlarged, will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Project Area by private enterprise. The reasons supporting this finding are set forth in Appendix C of the TIF Plan.

e. Appendix C of the TIF Plan is incorporated herein by reference.

4. Public Purpose. The adoption of the TIF Plan for the TIF District, as enlarged, within the Project Area conforms in all respects to the requirements of the Act and will help fulfill a need to develop an area of the State which is already built up to provide employment opportunities, to improve the tax base and to improve the general economy of the State and thereby serves a public purpose.

5. Approval of the Modifications. The Modifications, as presented to the Council on this date, including without limitation the findings and statements of objectives contained therein, are hereby approved and adopted and shall be placed on file in the office of the City Administrator.


6. Certification. The Auditor of Wright County is requested to certify the original net tax capacity of the property added to the TIF District as described in TIF Plan, and to certify in each year thereafter the amount by which the original net tax capacity has increased or decreased in accordance with the Act; and the City Administrator is authorized and directed to forthwith transmit this request to the County Auditor in such form and content as the Auditor may specify, together with a list of all properties to be added to the TIF District for which building permits have been issued during the 18 months immediately preceding the adoption of this Resolution.

7. Filing. The City Administrator is further authorized and directed to file a copy of the Modifications with the Commissioner of Revenue and the Office of the State Auditor, pursuant to Minnesota Statutes 469.174, Subdivision 4a.

The motion for the adoption of the foregoing resolution was duly seconded by Council Member Kittock and upon vote being taken thereon, the following voted in favor thereof:

and the following voted against the same: None Whereupon said resolution is declared duly passed and adopted.

Teri Lachermeier Mayor ATTEST: Merton T. Auger Administrator CALL FOR HEARING ON PAST DUE ACCOUNTS Upon motion by Council Member Anderson, motion seconded by Council Member Enter to call for a hearing on Monday, September 16, 2019 to certify the following past due accounts to the tax rolls, all members voted in favor.


Past Due Accounts Hearing September 16, 2019

PID ADDRESS AMOUNT DESCRIPTION 103-139-001060 308 Creekside Dr $581.84 Utilities

103-500-203313 713 8th St NE $1,044.46

Utilities

103-500-203313 713 8th St NE $629.68 Utilities Different Account Holders

103-500-203313 707 8th St NE $495.67 Utilities

103-148-003030 333 Creekside Dr $920.04 Utilities 103-024-002060 504 5th St S $577.16 Utilities 103-184-001060 405 12th St NW $208.54 Utilities 103-122-007290 1812 Hawk Trail $376.47 Utilities 103-500-193300 405 8th St NW; #3 $410.00 Utilities 103-500-304416 402 Lake Blvd S $349.99 Utilities 103-044-001080 601 Division St E $325.26 Utilities 103-500-311306 720 2nd Ave S $933.31 Utilities

103-055-001080 202 5th St NE; 2 $104.60

Utilities

Different Account Holders

103-055-001080 202 5th St NE; 2 $152.98 Utilities

103-040-000060 506 8th St NE $199.60 Utilities 103-039-001010 114 7th St S $610.28 Utilities 103-044-002020 610 Division St E $246.86 Utilities 103-057-003190 512 6th Ave S $441.46 Utilities 103-193-001030 1139 Ridgestone Pl $564.50 Utilities 103-192-001140 803 Ivy Ridge Ln $173.59 Utilities 103-019-001040 304 4th Ave S $247.96 Utilities

*Amount plus Interest at 6%.

ACCEPTANCE OF DONATIONS Upon motion by Council Member Kittock, motion seconded by Council Member Downer to accept with gratitude $100 for the Community Center from an anonymous donor, all members voted in favor.

September 3, 2019 City of Buffalo Council Minutes ADOPTION OF 2020 PRELIMINARY LEVIES AND CALL FOR HEARING Administrator Auger spoke of the anticipated market value increase that will reduce the overall taxes based upon the preliminary levy. While the proposed budget increase totaling a little over 5% is planned, the actual increase should be less. The City Council may reduce the final levies as the budget and CIP are formally adopted, but the levies may not be increased from the preliminary amounts. Upon motion by Council Member Enter, motion seconded by Council Member Downer to approve of the preliminary levies and memorandum, and to call for hearing on budget/levies for Monday, December 2, 2019. all members voted in favor.

Proposed Levy CertificationSTATE of MINNESOTA Return by: September 30, 2019COUNTY of WRIGHT District Taxes VotedBuffalo HRA

To the AUDITOR of Wright County: I hereby certify that the Board for the Buffalo HRA, County of Wright, Minnesota, did at a meeting on_________________________ levy the following amount to be raised by taxation for the Buffalo HRA the payable year 2020.

2019 Final 2020 Proposed

2019 2019 2019 2019 2020 2020 2020 2020Budget Other Tax Budget Other Certified

Requirement LGA Resources Levy # Fund Requirement LGA Resources Levy242,326 242,326 1 Administration 261,735 261,735

242,326 0 0 242,326 Total 261,735 261,735

* Do not include any Disparity Reduction Aid or Fiscal Disparity taxes.


A resolution is required to be submitted to the County with the proposed levy for any additions or reductions in the debt service levy. Below is the list of additions and reductions to the 2020 debt levy, along with explanations.

Additions and Reductions of Debt Levies: • Series 2008D G.O. Street Reconstruction Bonds – Decrease by $241,395.

The last payment on this bond was made in 2019. The full levy scheduled for 2020 in the bond resolution as recorded with Wright County is not needed.

• Series 2009D G.O. Bonds – Decrease by $510,024. This bond series was

refunded with Series 2019C, which has its own debt levy.

• Series 2010A G.O. Bonds – Decrease by $54,206. The governmental portion which carried a debt levy was redeemed in full when the water and sewer portion of this bond was refunded with Series 2019C.

• Series 2013A G.O. Bonds – Decrease by $175,035. This issue included

Electric Equipment Certificates. A levy for the Electric portion of the principal and interest is not needed as the Electric Fund can pay with operating revenue.

Proposed Levy CertificationSTATE of MINNESOTA Return by: September 30, 2019COUNTY of WRIGHT City Taxes VotedCITY of BUFFALO

To the AUDITOR of Wright County: I hereby certify that the Council for the City of Buffalo, County of Wright, Minnesota, did at a meeting on________________levy the following amount to be raised by taxation for the City of Buffalo for the payable year 2020.

2019 Final 2020 ProposedA B C D A B C D

(A-B-C=D) (A-B-C=D)2019 2019 2019 2019 2020 2020 2020 2020

Budget Other Tax Budget Other CertifiedRequirement LGA Resources Levy # Fund Requirement LGA Resources Levy

5,391,168 853,732 4,537,436 5 Revenue 5,577,291 974,339 4,602,9523,109,647 3,109,647 19 Debt Service 3,592,038 3,592,038

80,628 80,628 24 Library 80,628 80,628278,606 278,606 31 Lease Purchase 143,756 143,756

21,147 21,147 32 EDA 19,791 19,791

8,881,196 853,732 8,027,464 Total 9,413,504 974,339 8,439,165

* Do not include any Disparity Reduction Aid or Fiscal Disparity taxes.

September 3, 2019 City of Buffalo Council Minutes • Series 2014A G.O. W&S Revenue Bonds – Increase by $500,000. The

bond was sold as a revenue bond; however, W&S revenue is not able to cover all of the W&S bond debt.

• Series 2015C G.O. Tax Abatement Bonds – Decrease by $235,266. This

bond was sold to finance the Trailblazer Facility. A levy was included in the bond documents, but the payments received under the lease agreement will cover all principal and interest due.

• Series 2016A G.O. Tax Abatement Bonds – Increase by $235,625. This is

the WM Refunding Bond. The golf fund is unable to cover the bond payments with operating revenue. A levy was not included in the bond resolution, so a resolution is needed now.

• Series 2019B G.O. W&S Revenue Bonds – Decrease by $105,000.

Proceeds from an installment sale of a permanent communication easement have been committed towards payment of the fire station debt.

CALL FOR BIDS ON LEASE PURCHASE FINANCING Administrator Auger reviewed the lease purchase financing. Lease items proposed are already within the City’s 2019 budget and are annual

leases. There are additional implements and equipment that could be financed through a lease purchase financing plan. The total amount for the various equipment for Police, Street/Parks and Wild Marsh Golf Course is $424,539.78.

City of Buffalo

Lease Purchase Listing ~ Fall 2019

Department Item Description Amount

Police Ford Explorer Hybrid Police Interceptor 56,565.56 Public Works - Street 2019 Western Star Plow Truck 204,839.13 Public Works - Street 1 Ton Truck ~ 8' Box 34,000.00 Public Works - Park 5115M John Deere Tractor & Blower 80,290.20 Wild Marsh Golf Foley 653 Reel Grinder 48,844.89

$424,539.78

City of Buffalo Council Minutes September 3, 2019 Upon motion by Council Member Downer, motion seconded by Council Member Anderson to call for bids on the lease purchase financing, all members voted in favor. APPOINT AIRPORT ADVISORY BOARD MEMBER Upon motion by Council Member Enter, motion seconded by Council Member Downer to appoint Jeff Anderson to fill the remainder of Terry Morrow’s term that ends in 2020, all members voted in favor. TEMPORARY LIQUOR LICENSE Upon motion by Council Member Anderson, motion seconded by Council Member Kittock to approve of a Temporary Liquor License for Derek Lieder for a wedding reception at the Civic Center on September 28, 2019 from 4:00 p.m. until midnight, all members voted in favor. APPROVAL OF SALE OF CITY-OWNED ITEMS Assistant Administrator Bodin said the Street/Parks staff has been cleaning storage areas at the Street/Parks Department. The following list of items in storage are recommended to be approved for sale at auction. Old Buffalo Lake Fountain Homemade Fan

Doors (2) with Frames from Wild Marsh 8 - 10 Spring Toys from Parks Old Tandem Plow Parts 4 x 2 Gator

Old Wire Baskets (Flower Holders) Old Sander for Box of a Truck 2 Lawn Sprinklers for Garden Hose Attachments Old Chain Link Fence and Parts Aluminum Bench Sections Paddle Boat(s) (Non-Functional) Police MPH Monitor (Radar Trailer) 2 Docks

Park Grills

100-Gallon Plastic Tank Buffalo Wine & Spirits Vintage Sign Fire Truck 1980 Ford Tanker

Upon motion by Council Member Enter, motion seconded by Council


Member Kittock to approve of the sale of the above-listed items at auction, all members voted in favor.

CLOSED MEETING TO DISCUSS LITIGATION Mayor Lachermeier stated that The City Council is authorized to close a public meeting for attorney-client communications under Minn. Stat. § 13D.05, subd. 3(B); the City is a party to litigation involving NGH-Wild Marsh, LLC and currently pending before the courts, and the discussion during the closed meeting will be limited to issues relating to the case; the purpose of the closed meeting is to have a candid discussion with the City’s Attorney; there is a need for this discussion to occur in a confidential setting. Mayor called for a motion for the Council to go into closed session pursuant to the exception in Minn. Stat. § 13D.05, subd. 3(B) to discuss the pending litigation.

Upon motion by Council Member Kittock, motion seconded by Council Member Downer, the Council moved to close the meeting based on the above criteria, all members voted in favor.

Mayor reopened the meeting.

ADJOURN Upon motion by Council Member Enter, motion seconded by Council Member Downer to adjourn the meeting at 9:10 p.m., all members voted in favor.

Mayor

City Administrator

Return to AgendaClaims Follow Below

9-11-2019 10:09 AM A/P PAYMENT REGISTER PAGE: 1

PACKET: 06030 09/12/2019 PY AP EFT

VENDOR SET: 01

VENDOR SEQUENCE

VENDOR ITEM NO# DESCRIPTION BANK CHECK STAT DUE DT GROSS PAYMENT OUTSTANDING

DISC DT BALANCE DISCOUNT

------------------------------------------------------------------------------------------------------------------------------------

01-B0006 BUFFALO POLICE EMPLOYEE ASS

I BPE201909108648 BPEA DUES CITY E 9/12/2019 85.00 85.00CR

85.00

EFT 85.00 85.00CR 0.00

85.00 0.00

------------------------------------------------------------------------------------------------------------------------------------

01-C0032 COFFEE FUND

I COF201909108648 COFFEE FUND CITY E 9/12/2019 42.00 42.00CR

42.00

EFT 42.00 42.00CR 0.00

42.00 0.00

------------------------------------------------------------------------------------------------------------------------------------


PACKET: 06030 09/12/2019 PY AP EFT

VENDOR SET: 01

=================================================== R E P O R T T O T A L S ===================================================

F U N D D I S T R I B U T I O N

FUND NO# FUND NAME AMOUNT

----------------------------------------------------------

100 GENERAL FUND 106.47CR

600 ELECTRIC 19.74CR

610 WATER & SEWER 0.59CR

640 WILD MARSH GOLF COURSE 0.20CR

** TOTALS ** 127.00CR

====================================================================================================================================

---- TYPE OF CHECK TOTALS ----

GROSS PAYMENT OUTSTANDING

NUMBER BALANCE DISCOUNT

HAND CHECKS 0.00 0.00 0.00

0.00 0.00

DRAFTS 0.00 0.00 0.00

0.00 0.00

REG-CHECKS 0.00 0.00 0.00

0.00 0.00

EFT 127.00 127.00CR 0.00

127.00 0.00

NON-CHECKS 0.00 0.00 0.00

0.00 0.00

ALL CHECKS 127.00 127.00CR 0.00

127.00 0.00

TOTAL CHECKS TO PRINT: 0

------------------------------------------------------------------------------------------------------------------------------------

ERRORS: 0 WARNINGS: 0


PACKET: 06031 09/12/2019 PY AP

VENDOR SET: 01

VENDOR SEQUENCE



------------------------------------------------------------------------------------------------------------------------------------

01-A0001 AFLAC ADMINISTRATIVE SERV

I AFA201909108648 AFLAC - ACCIDENT CITY 9/12/2019 D 9/12/2019 54.78 54.78CR

54.78

I AFC201909108648 AFLAC CANCER CITY 9/12/2019 D 9/12/2019 35.70 35.70CR

35.70

I AFH201909108648 AFLAC-SPECIFIED HEALTH EVEN CITY 9/12/2019 D 9/12/2019 18.18 18.18CR

18.18

I AFS201909108648 AFLAC STD CITY 9/12/2019 D 9/12/2019 139.35 139.35CR

139.35

DRAFTS 1 248.01 248.01CR 0.00

248.01 0.00

------------------------------------------------------------------------------------------------------------------------------------

01-C0089 CITY OF BUFFALO

I LIF201909108648 LIFE INSURANCE CITY R 9/12/2019 569.16 569.16CR

569.16

REG. CHECK 569.16 569.16CR 0.00

569.16 0.00

------------------------------------------------------------------------------------------------------------------------------------


I SE1201909108648 EMPLOYEE INS CITY R 9/12/2019 10,612.79 10,612.79CR

10,612.79

REG. CHECK 10,612.79 10,612.79CR 0.00

10,612.79 0.00

------------------------------------------------------------------------------------------------------------------------------------


I SE3201909108648 SELECT 3 DAYCARE CITY R 9/12/2019 961.55 961.55CR

961.55

REG. CHECK 961.55 961.55CR 0.00

961.55 0.00

------------------------------------------------------------------------------------------------------------------------------------


PACKET: 06031 09/12/2019 PY AP

VENDOR SET: 01

VENDOR SEQUENCE



------------------------------------------------------------------------------------------------------------------------------------


I SE4201909108648 MEDICAL REIMBURSE CITY R 9/12/2019 890.64 890.64CR

890.64

REG. CHECK 890.64 890.64CR 0.00

890.64 0.00

------------------------------------------------------------------------------------------------------------------------------------


I SE5201909108648 DENTAL INSURANCE CITY R 9/12/2019 1,948.02 1,948.02CR

1,948.02

REG. CHECK 1,948.02 1,948.02CR 0.00

1,948.02 0.00

------------------------------------------------------------------------------------------------------------------------------------


I VIS201909108648 EMPLOYEE INS CITY R 9/12/2019 179.85 179.85CR

179.85

REG. CHECK 179.85 179.85CR 0.00

179.85 0.00

------------------------------------------------------------------------------------------------------------------------------------

01-D0070 MG TRUST CO

I DEL201909108648 TPA 000111 DELAWARE 07C65Z8 CITY 9/12/2019 D 9/12/2019 95.00 95.00CR

95.00

DRAFTS 1 95.00 95.00CR 0.00

95.00 0.00

------------------------------------------------------------------------------------------------------------------------------------

01-E0067 EFTPS

C T3 201909108655 FICA WITHHOLDING CITY 9/12/2019 D 8/29/2019 285.80CR 285.80

285.80CR

I T1 201909108648 FEDERAL WITHHOLDING CITY 9/12/2019 D 9/12/2019 24,476.19 24,476.19CR

24,476.19

I T3 201909108648 FICA WITHHOLDING CITY 9/12/2019 D 9/12/2019 25,583.00 25,583.00CR

25,583.00

I T4 201909108648 MEDICARE WITHHOLDING CITY 9/12/2019 D 9/12/2019 7,629.76 7,629.76CR

7,629.76

DRAFTS 1 57,403.15 57,403.15CR 0.00

57,403.15 0.00

------------------------------------------------------------------------------------------------------------------------------------


PACKET: 06031 09/12/2019 PY AP

VENDOR SET: 01

VENDOR SEQUENCE



------------------------------------------------------------------------------------------------------------------------------------

01-KHSA OLD NATIONAL HSA ACCOUNT

I SE6201909108648 HSA CONTRIBUTIONS CITY 9/12/2019 D 9/12/2019 5,596.08 5,596.08CR

5,596.08

I SE7201909108648 HSA CONTRIBUTIONS CITY 9/12/2019 D 9/12/2019 1,169.58 1,169.58CR

1,169.58

I SE8201909108648 HSA CONTRIBUTIONS CITY 9/12/2019 D 9/12/2019 818.76 818.76CR

818.76

DRAFTS 1 7,584.42 7,584.42CR 0.00

7,584.42 0.00

------------------------------------------------------------------------------------------------------------------------------------

01-M0005 MN CHILD SUPPORT PAYMENT

I SUP201909108648 CHILD SUPPORT CITY 9/12/2019 D 9/12/2019 190.58 190.58CR

190.58

DRAFTS 1 190.58 190.58CR 0.00

190.58 0.00

------------------------------------------------------------------------------------------------------------------------------------

01-M0056 MINNESOTA DEPT REVENUE (EFT

I T2 201909108648 STATE WITHHOLDIN G CITY 9/12/2019 D 9/12/2019 11,359.27 11,359.27CR

11,359.27

DRAFTS 1 11,359.27 11,359.27CR 0.00

11,359.27 0.00

------------------------------------------------------------------------------------------------------------------------------------

01-N0022 NATIONWIDE RETIREMENT SOL

I NRS201909108648 DEF COMP CITY R 9/12/2019 1,049.00 1,049.00CR

1,049.00

REG. CHECK 1,049.00 1,049.00CR 0.00

1,049.00 0.00

------------------------------------------------------------------------------------------------------------------------------------

01-O0035 ING/MN STATE RETIREMENT SYS

I MDC201909108648 DEF COMP - PERCENTAG CITY 9/12/2019 D 9/12/2019 197.76 197.76CR

197.76

I MNR201909108648 DEFERRED COMP - ROTH CITY 9/12/2019 D 9/12/2019 100.00 100.00CR

100.00


PACKET: 06031 09/12/2019 PY AP

VENDOR SET: 01

VENDOR SEQUENCE



------------------------------------------------------------------------------------------------------------------------------------

01-O0035 ING/MN STATE RETIREMENT SYS(CONT)

I MSD201909108648 DEF COMP CITY 9/12/2019 D 9/12/2019 830.00 830.00CR

830.00

DRAFTS 1 1,127.76 1,127.76CR 0.00

1,127.76 0.00

------------------------------------------------------------------------------------------------------------------------------------

01-P0028 PUBLIC EMPLOYEES

I P&F201909108648 POLICE PERA CITY 9/12/2019 D 9/12/2019 15,576.02 15,576.02CR

15,576.02

I PER201909108648 PERA CITY 9/12/2019 D 9/12/2019 27,882.35 27,882.35CR

27,882.35

DRAFTS 1 43,458.37 43,458.37CR 0.00

43,458.37 0.00

------------------------------------------------------------------------------------------------------------------------------------


PACKET: 06031 09/12/2019 PY AP

VENDOR SET: 01

=================================================== R E P O R T T O T A L S ===================================================

F U N D D I S T R I B U T I O N

FUND NO# FUND NAME AMOUNT

----------------------------------------------------------

100 GENERAL FUND 58,278.76CR

200 PARK 7,892.03CR

230 AIRPORT 582.69CR

260 COMMUNITY CENTER FUND 1,240.02CR

600 ELECTRIC 29,529.60CR

610 WATER & SEWER 16,752.06CR

620 LIQUOR-HIGHWAY 5,461.25CR

621 LIQUOR - DOWNTOWN 2,329.11CR

630 CIVIC CENTER 2,476.66CR

640 WILD MARSH GOLF COURSE 13,135.39CR

** TOTALS ** 137,677.57CR

====================================================================================================================================

---- TYPE OF CHECK TOTALS ----

GROSS PAYMENT OUTSTANDING

NUMBER BALANCE DISCOUNT

HAND CHECKS 0.00 0.00 0.00

0.00 0.00

DRAFTS 8 121,466.56 121,466.56CR 0.00

121,466.56 0.00

REG-CHECKS 16,211.01 16,211.01CR 0.00

16,211.01 0.00

EFT 0.00 0.00 0.00

0.00 0.00

NON-CHECKS 0.00 0.00 0.00

0.00 0.00

ALL CHECKS 8 137,677.57 137,677.57CR 0.00

137,677.57 0.00

TOTAL CHECKS TO PRINT: 7

------------------------------------------------------------------------------------------------------------------------------------

ERRORS: 0 WARNINGS: 0

9/10/2019 4:12 PM A/P Refund Item Register PAGE: 1

PACKET: 06020 US - Refund

VENDOR SET: 01 City of Buffalo, MN

SEQUENCE : ALPHABETIC

DUE TO/FROM ACCOUNTS SUPPRESSED

ITM DATE GROSS P.O. #

-------ID------- BANK CODE ---------DESCRIPTION--------- DISCOUNT G/L ACCOUNT --ACCOUNT NAME-- DISTRIBUTION

====================================================================================================================================

01-1 MISCELLANEOUS VENDOR

____________________________________________________________________________________________________________________________________

I-000201909058616 9/05/2019 AUSEN, MARY 10.60

CITY DUE: DISC: 1099:

01-066050-21 600 11503-0000 ACCOUNTS RECEIV 10.60

____________________________________________________________________________________________________________________________________

I-000201909058617 9/05/2019 ASHBY, MICHAEL 496.18


06-028010-01 600 11503-0000 ACCOUNTS RECEIV 496.18

____________________________________________________________________________________________________________________________________

I-000201909058618 9/05/2019 MILLER, RICHARD & KIM 3.19


08-008300-00 600 11503-0000 ACCOUNTS RECEIV 3.19

____________________________________________________________________________________________________________________________________

I-000201909058619 9/05/2019 STRAND, ROBERT & HEATHE 155.02


08-045110-00 600 11503-0000 ACCOUNTS RECEIV 155.02

____________________________________________________________________________________________________________________________________

I-000201909058620 9/05/2019 CRANBERRY, ENTERPRISES 9.25


13-110110-13 600 11503-0000 ACCOUNTS RECEIV 9.25

____________________________________________________________________________________________________________________________________

I-000201909058621 9/05/2019 LARSEN, KOREY 398.95


14-015500-00 600 11503-0000 ACCOUNTS RECEIV 398.95

____________________________________________________________________________________________________________________________________

I-000201909058622 9/05/2019 RANDALL, RYAN/ANGELA 55.74


16-003110-04 600 11503-0000 ACCOUNTS RECEIV 55.74

____________________________________________________________________________________________________________________________________

I-000201909058623 9/05/2019 PELLATON, LINDSEY 134.50


23-031600-02 600 11503-0000 ACCOUNTS RECEIV 134.50

=== VENDOR TOTALS === 1,263.43

=== PACKET TOTALS === 1,263.43

9/10/2019 4:12 PM A/P Refund Item Register PAGE: 2

PACKET: 06020 US - Refund

VENDOR SET: 01 City of Buffalo, MN

SEQUENCE : ALPHABETIC

DUE TO/FROM ACCOUNTS SUPPRESSED

** T O T A L S **

INVOICE TOTALS 1,263.43

DEBIT MEMO TOTALS 0.00

CREDIT MEMO TOTALS 0.00

________________________________________________________________________________

BATCH TOTALS 1,263.43

____________________________________________________________________________________________________________________________________

** G/L ACCOUNT TOTALS **

=========LINE ITEM========= ========GROUP BUDGET======

ANNUAL BUDGET OVER ANNUAL BUDGET OVER

BANK YEAR ACCOUNT NAME AMOUNT BUDGET AVAILABLE BUDG BUDGET AVAILABLE BUDG

2019 600-11503-0000 ACCOUNTS RECEIVABLE - EL 1,263.43

600-20200-0000 ACCOUNTS PAYABLE 1,263.43-*

999-12600-0000 DUE FROM ELECTRIC 1,263.43 *

** 2019 YEAR TOTALS 1,263.43

TOTAL ERRORS: 0 TOTAL WARNINGS: 0

** END OF REPORT **

Return to Agenda

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