Loading...
HomeMy WebLinkAbout2014-07-01 COUNCIL MEETINGAGENDA CITY COUNCIL MEETING CITY OF EDINA, MINNESOTA CITY COUNCIL CHAMBERS TUESDAY, JULY 1, 2014 7:00 P.M. I. CALL TO ORDER 11. ROLL CALL III. APPROVAL OF MEETING AGENDA IV. ADOPTION OF CONSENT AGENDA All agenda items listed on the consent agenda are considered routine and will be enacted by one motion. There will be no separate discussion of such items unless requested to be removed from the Consent Agenda by a Member of the City Council. In such cases the item will be removed from the Consent Agenda and considered immediately following the adoption of the Consent Agenda. (Favorable rollcall vote of majority of Council Members present to approve.) A. Approval Of Minutes — Regular Meeting Of June 17, 2014 And Work Session Of June 17, 2014 B. Receive Payment Of Claims As Per: Pre -List Dated, 6/19/2014 TOTAL $1,987,607.06 And Per Pre -List Dated, 6/26/2014 TOTAL $1,038,066.38 and Credit Card Purchases Dated 4/26/14 — 5/26/14 TOTAL $31,015.83 C. Resolution No. 2014 -71 Fiscal Year 2015 -2017 Joint Cooperation Agreement/Community Development Block Grant Renewal D. Resolution No. 2014 -72 Authorizing Join Powers Agreement With the State of Minnesota — Minnesota Financial Crimes Task Force E. Request For Purchase — Squad Light Bars F. Resolution No. 2014 -77 Approving Public Health Emergency Preparedness Grant Project Agreement 2014 -2015 G. Resolution No. 2014 -74 Appointing Election Judges For August 12, 2014 Primary H. Request For Purchase — Award of Bid Contract ENG 14 -10 2 -014 Watermain Improvements I. Approve Release of Public Improvement & Special Assessment Agreements J. Ordinance No. 2014 -07 Amending Chapter 26 Of The Edina City Code Concerning Petty Misdemeanors K. Change Order — Contract ENG 14 -4 Birchcrest B Neighborhood Roadway Improvements L. Resolution No. 2014 -75 Authorizing Minnesota Department of Employment and Economic Development Grant Application For Pentagon Park South AgendaJEdina City Council July I, 2014 Page 2 V. SPECIAL RECOGNITIONS AND PRESENTATIONS A. Hennepin County Sheriff Richard Stanek VI. COMMUNITY COMMENT During "Community Comment," the City Council will invite residents to share new issues or concerns that haven't been considered in the past 30 days by the Council or which aren't slated for future consideration. Individuals must limit their comments to three minutes. The Mayor may limit the number of speakers on the same issue in the interest of time and topic. Generally speaking, items that are elsewhere on tonight's agenda may not be addressed during Community Comment. Individuals should not expect the Mayor or Council to respond to their comments tonight. Instead the Council might refer the matter to staff for consideration at a future meeting. VII. REPORTS /RECOMMENDATIONS: (Favorable vote of majority of Council Members present to approve except where noted) A. Resolution No. 2014 -73 Authorizing The Sale and Issuance Of Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project) Series 2014 B. Request For Purchase — Award of Bid — Contract # 13 -7PK, Pamela Park Shelter Building C. Resolution No. 2014 -76 Accepting Various Grants & Donations VIII. CORRESPONDENCE AND PETITIONS A. Correspondence B. Advisory Communication — Human Rights & Relations Commission — Local Support For Human Rights Implementation And Monitoring C. Minutes I. Energy & Environment Commission, May 8, 2014 2. Edina Community Health Commission, May 6, 2014 3. Veteran's Memorial Committee, April 18, 2014 4. Edina Transportation Commission, May 15, 2014 S. Arts & Culture Commission Meeting / _�i7:7d�l� 411-- XI. MANAGER'S COMMENTS XII. ADJOURNMENT Agenda/Edina City Council July I, 2014 Page 3 The City of Edina wants all residents to be comfortable being part of the public process. If you need assistance in the way of hearing amplification, an interpreter, large -print documents or something else, please call 952- 927 -8861 72 hours in advance of the meeting. SCHEDULE OF UPCOMING MEETINGS /DATES /EVENTS Tues Jul I Work Session — Closed Meeting Possible Land Acquisition 5:00 P.M. COMMUNITY ROOM Tues Jul I Work Session — PACS Approval Process /Living Streets Implementation 5:30 P.M. COMMUNITY ROOM Tues Jul I Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Fri Jul 4 INDEPENDENCE DAY HOLIDAY OBSERVED — City Hall Closed Tues Jul 15 Work Session — Business Meeting/Art & Culture Donations 5:30 P.M. COMMUNITY ROOM Tues Jul 15 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Tues Jul 29 Filing Opens for Municipal Offices On November General Election CLERK'S OFFICE Mon Aug 4 Work Session —Fred Richards Redesign 5:00 P.M. COMMUNITY ROOM Joint Session With Human Rights & Relations Commission 6:00 P.M. COMMUNITY ROOM Mon Aug 4 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Tues Aug 5 Night To Unite Thur Aug 7 CANDIDATES INFORMATION SESSION 5:00 P.M. COUNCIL CHAMBERS Tues Aug 12 PRIMARY ELECTION DAY — Polls Open 7 A.M. Through 8:00 P.M. Tues Aug 12 Filing Closes for Municipal Offices On November General Election 5:00 P.M. CLERIC'S OFFICE Tues Aug 19 Work Session —Blake Road Corridor Study /Tree Ordinance 5:30 P.M. COMMUNITY ROOM Tues Aug 19 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Mon Sep I LABOR DAY HOLIDAY OBSERVED — City Hall Closed Tues Sep 2 Work Session — Grandview Development Partner Interviews 5:00 P.M. COMMUNITY ROOM Tues Sep 2 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS ues Sep 16 Work Session — TBD 5:30 P.M. COMMUNITY ROOM ies Sep 16 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS i ues Oct 7 Work Session — 2015 Boards /Commission Work Plans 5:30 P.M. COMMUNITY ROOM Tue Oct 7 Regular Meeting 7:00 P.M. COUNCIL CHAMBERS Tues Oct 21 Rep. Keith Ellison Update /Business Meeting 5:00 P.M. COMMUNITY ROOM J MINUTES OF THE REGULAR MEETING OF THE EDINA CITY COUNCIL HELD AT CITY HALL JUNE 17, 2014 7:00 P.M. 1. CALL TO ORDER Mayor Hovland called the meeting to order at 7:06 p.m. Il. ROLLCALL Answering rollcall were Members Bennett, Brindle, Sprague, Swenson and Mayor Hovland. 111. MEETING AGENDA APPROVED Member Brindle made a motion, seconded by Member Swenson approving the meeting agenda. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. IV. CONSENT AGENDA ADOPTED Member Swenson made a motion, seconded by Member Bennett approving the consent agenda as revised to remove Items IV.C. Cooperative Agreement for Emergency Communications Services; IV.D. Ancillary Agreement 01, Procurement of Shared /Hosted 9 -1 -1 Call Handling System; IV.E. Request for Purchase, Shared /Hosted 9 -1 -1 Call Handling System Solution; IV.I. Braemar Master Plan Task Force Appointments; IV.J. Traffic Safety Committee Report on May 7, 2014; and, IV.M. Resolution No. 2014 -68 Approving a Special Law Authorizing Tax Increments Financing Districts for Housing Purposes and Expenditures from the Southdale 2 Tax Increment Financing District, as follows: W.A. Approve regular and work session meeting minutes of June 3, 2014 IV.B. Receive payment of the following claims as shown in detail on the Check Register dated June 5, 2014, and consisting of 28 pages; General Fund $307,797.50; Police Special Revenue $5,729.06; Art and Culture Fund $104.00; Working Capital Fund $19,833.44; Equipment Replacement Fund $15,267.80; Art Center Fund $5,078.59; Golf Dome Fund $3,783.36; Aquatic Center Fund $90.95; Golf Course Fund $42,143.66; Ice Arena Fund $35,292.83; Edinborough Park Fund $12,025.95; Centennial Lakes Park Fund $9,628.09; Liquor Fund $182,558.71; Utility Fund $23,567.34; Storm Sewer Fund $157.35; PSTF Agency Fund $936.72; Payroll Fund $15,803.37; TOTAL $679,798.72 and for receipt of payment of claims dated June 12, 2014, and consisting of 34 pages; General Fund $196,031.03; Police Special Revenue $2,640.00; Arts and Culture Fund $978.00; General Debt Service Fund $1,390.00; PIR Debt Service Fund $3,000.00; Working Capital Fund $166,805.74; Equipment Replacement Fund $87,558.91; Art Center Fund $2,641.47; Golf Dome Fund $37.39; Aquatic Center Fund $556.96; Golf Course Fund $18,699.07; Ice Arena Fund $23,250.69; Centennial Lakes Park Fund $2,578.41; Liquor Fund $256,448.00; Utility Fund $440,721.60; Storm Sewer Fund $3,967.10; Recycling Fund $25.00; PSTF Agency Fund $2,612.46; TOTAL $1,209,941.83 IV.C. r„ +•, a Agreement for Em , Services IV.D. AnGiiiiaFy Agreement 01, PreGure.m.ent eaf-ShaFedl/Westedl 94-1- Call Handling System IV.& Reque-rtfe--r purchase, Shared/Hosted 9 1 '-1 Call Handling System Solution IV.F. Adopt Resolution No. 2014 -55, Establishing Precinct 5 and Precinct 10 Polling Locations for the 2014 Election Cycle IV.G. Approve Appointment of Steve Suckow to the vacancy on the Arts & Culture Commission for a term ending February 1, 2016 IV.H. Request for Purchase, Geographic Information System (GIS) Database Design for Park System, awarding the bid to the recommended low bidder, Geographic Technologies Group at $37,500 W.I. Master Plan Task Force Appointments IV,J: Tr -affic Safety Committee Ramer+ en May 7 -2014 Page 1 Minutes /Edina Citv Council /June 17. 2014 f It IV.K. Adopt Resolution No. 2014 -67, Public Improvement and Special Assessment Agreements IV.L. Request for Purchase, Professional Services Agreement, awarding the bid to the recommended low bidder, future iQ Partners at $75,000 1V RA Rpl;gh-togn hin Rollcall: Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. ITEMS REMOVED FROM THE CONSENT AGENDA IV.C. COOPERATIVE AGREEMENT FOR EMERGENCY COMMUNICATIONS SERVICES — APPROVED IV.D. ANCILLARY AGREEMENT 01, PROCUREMENT OF SHARED /HOSTED 9 -1 -1 CALL HANDLING SYSTEM — APPROVED IV.E. REQUEST FOR PURCHASE, SHARED /HOSTED 9 -1 -1 CALL HANDLING SYSTEM SOLUTION — AWARDED Civilian Services Manager Draper stated the City was undertaking a mutual project with Hennepin County. She explained this plan would enhance the City's service because its current analog equipment installed in 1999 does not have all of the same enhanced abilities as the new Hennepin County digital equipment. In the long term, it would save money for the City and allow sharing, when desired with other systems. It was noted the funds were within the City's budget. Ms. Draper answered questions of the Council related to enhanced functionality and benefit of built -in redundancy. Member Swenson made a motion, seconded by Member Sprague, approving Cooperative Agreement for Emergency Communications Services; Ancillary Agreement 01, Procurement of Shared /Hosted 9 -1 -1 Call Handling System; and, Request for Purchase, Shared /Hosted 9 -1 -1 Call Handling System Solution, awarding the bid to the recommended low bidder, Independent Emergency Services, LLC at $354,959. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. W.I. BRAEMAR MASTER PLAN TASK FORCE APPOINTMENT— RATIFIED The Council acknowledged that the Task Force would select its own chair. Member Sprague made a motion, seconded by Member Brindle, ratifying Braemar Master Plan Task Force Appointments: Brenda McCormick, Park Board; David Deeds, Park Board; Rick Ites; Pacy Erck; Joseph Hulbert; Dick Brozic; and, Paul Presthus. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. W.J. TRAFFIC SAFETY COMMITTEE REPORT ON MAY 7, 2014 —ACCEPTED The Council discussed Item A2, request to improve the signage for the No Left Turn sign from the exit from Edina Liquor to Gus Young Lane. Member Sprague made a motion, seconded by Member Bennett, to accept Traffic Safety Committee Report on May 7, 2014. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. IV.M. RESOLUTION NO. 2014 -70 — ADOPTED APPROVING A SPECIAL LAW AUTHORIZING TAX INCREMENTS FINANCING DISTRICTS FOR HOUSING PURPOSES AND EXPENDITURES FROM THE SOUTHDALE 2 TAX INCREMENT FINANCING DISTRICT Economic Development Manager Neuendorf described the City's lobbying effort for special legislation to authorize creation of new housing districts to fund affordably priced homes and enable additional options. He referenced a map depicting the Southeast Edina Redevelopment District in which a new district could be created to enable affordably priced housing. Mr. Neuendorf indicated this special legislation was restricted to affordably priced housing and would not enable additional TIF assistance to other types of projects. The legislation included a deadline of 2017 to create a new TIF District but once certified, that Page 2 Minutes /Edina City Council /June 17, 2014 District could last for 25 years. Mr. Neuendorf answered questions of the Council related to steps to create such a TIF District and level of increment that might be available. Member Bennett introduced and moved adoption of Resolution No. 2014 -70 Approving a Special Law Authorizing Tax Increments Financing Districts for Housing Purposes and Expenditures from the Southdale 2 Tax Increment Financing District. Member Sprague seconded the motion. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. V. SPECIAL RECOGNITIONS AND PRESENTATIONS V.A. COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR YEAR ENDED DECEMBER 31, 2013 — RECEIVED James Eichten of MMKR, Certified Public Accountant, presented the Comprehensive Annual Financial Report (CAFR) for year ended December 31, 2013. Mr. Eichten answered questions of the Council relating to the separation of accounting operations, tax classifications, and average tax rates by taxing entity. Mr. Eichten observed that the City was well managed. Member Swenson made a motion, seconded by Member Bennett, receiving the Comprehensive Annual Financial Report for year ended December 31, 2013. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. The Council commended Finance Director Wallin, Assistant Finance Director Roggeman, and the Finance Department for a job well done. V. B. MAY "SPEAK UP EDINA" REPORT PRESENTED — TOPIC: EDINA SENIOR CENTER Communications Coordinator Gilgenbach presented a summary of May opinions, both pros and cons, collected through "Speak Up, Edina," relating to the Edina Senior Center. Mr. Gilgenbach answered questions of the Council relating to respondents. It was noted the draw was from other communities, as well as Edina, but the number engaged in this conversation was not great at this point. Mr. Neal explained the goal was to establish more dialogue and outreach with the community. He stated staff would undertake a value analysis at the end of the year to determine if this was an effective tool. Vl. PUBLICHEARINGS HELD — Affidavits of Notice presented and ordered placed on file. VI.A. ISSUANCE OF HOUSING REVENUE BOND ON BEHALF OF YORKTOWN CONTINENTAL, LP, RESOLUTION NO. 2014 -65, CONDUIT DEBT — ADOPTED Finance Director Presentation Finance Director Wallin described the use of conduit financing and process to issue tax exempt revenue bonds, noting the City would hold no financial responsibility from these bonds. Proponent Presentation David Dye, Yorktown Continental Limited Partnership, presented the request of Yorktown Continental, LP, a limited - purpose entity, for the issuance of up to $26,500,000 in bonds to finance a portion of the cost to acquire and rehabilitate the existing 264 -unit Yorktown Continental apartment building located at 7151 York Avenue South to provide affordable housing. Frank Hogan, Dougherty & Company, described the anticipated financing and assured the Council that the City would not be FespeRsible, in any way financially responsible, for this project's debt. Mr. Dye answered questions of the Council relating to the timing of the rehabilitation that would be undertaken in increments of 12 units at a time, during which time those residents would be relocated to guest suites. These units were independent living units, every unit was affordable, and would remain so. Mr. Dye indicated the use agreement of 1996 signed for 50 years, was monitored by HUD and Minnesota Housing. Page 3 Minutes /Edina City Council /June 17, 2014 The Council asked how compliance and rent restrictions would be monitored. Senior Planner Repya responded this was the first time the City would be responsible to monitor rents and qualifications and those procedures would be worked out. Mr. Dye described the existing multi - jurisdictional monitoring. With regard to the City's risk with conduit financing, Mr. Neal explained that Edina had approved this type of financing for similar projects. He confirmed there was no liability for the City and it would not impact the City's borrowing capacity. It was noted the City would be reimbursed one -half of 1% of the principal for monitoring compliance. Mayor Hovland opened the public hearing at 8:18 p.m. Public Testimony No one appeared to comment. Member Sprague made a motion, seconded by Member Swenson, to close the public hearing. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. Member Swenson introduced and moved adoption of Resolution No. 2014 -65, Giving Preliminary Approval of Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014. Member Brindle seconded the motion. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. VI.B. COMPREHENSIVE PLAN AMENDMENT REGARDING RESIDENTIAL DENSITY FOR MIXED USE AREA, BUILDING HEIGHTS FLOOR AREA RATIO AND LAND USE, RESOLUTION NO. 2014 -68 — ADOPTED Community Development Director Presentation Community Development Director Teague explained that, as a result of the recent Comprehensive Plan Amendment for the Lennar project at 6725 York Avenue, the Metropolitan Council had requested the City establish new residential density ranges within the City's Comprehensive Plan to better align with the description of the uses allowed within each District. Mr. Teague presented the proposed density ranges for each zoning district, noting that by establishing new density ranges for these areas, the City would create the feasibility for mixed -use projects. In addition, changes to these density ranges would accommodate growth that had been anticipated and planned for in the City's future population projections. Mr. Teague stated the Planning Commission, at its June 11, 2014 meeting, unanimously recommended approval of the Comprehensive Plan Amendment. The Council asked questions of Mr. Teague relating to densities, sewer capacity, and transportation infrastructure, which have been of concern to the Council. Mr. Teague indicated the transportation infrastructure numbers, as proposed, were found to be somewhat less for residential versus office /retail. It was noted that of the five PUDs approved, -two eee had been built, twe were one was in process, and two ene -have not been developed at this time. Mr. Teague explained the transition in the density from 50th and France to the White Oaks and Country Club neighborhoods was mainly duplexes and single - family homes. Mr. Millner answered questions of the Council relating to the basis for sewer capacity studies, Metropolitan Council population estimates, and City modeling. It was noted that should the City consider a Comprehensive Plan Amendment to adjust the dwellings per acre number, the Metropolitan Council would consider both sewer capacity data and transportation system data. Mr. Millner confirmed the City's sewer system was adequate and WSB had indicated there was adequate roadway capacity to support the proposed residential density ranges in the mixed use districts and in the Southdale area. Mayor Hovland opened the public hearing at 8:47 p.m. Page 4 Minutes /Edina City Council /June 17, 2014 Public Testimo Kim Montgomery, 5300 Evanswood Lane, addressed the Council. Gene Persha, 6917 Cornelia Drive, addressed the Council. Hope Melton, 4825 Valley View Road, addressed the Council. Member Swenson made a motion, seconded by Member Brindle to close the public hearing. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. The Council acknowledged it had approved FAR as a way to control the amount of development compared to the size of lot, the City already had areas of high density, and this was not an unusual consideration. In addition, this proposal would match FAR to the acreage. Support was expressed for the proposed clarification and to revisit this issue during the next Comprehensive Plan update. It was noted the term "workforce housing" might be a better term than "affordable housing," as that defined people who presently worked in Edina yet cannot afford to live here due to the high real estate values. The Council indicated it was starting a Small Area Plan for Valley View and Wooddale and urged residents and business owners to attend the June 18, 2014, meeting to provide comment on what was wanted in their neighborhood. The Council discussed the proposed Amendment and need to correct the mixed use densities within the Comprehensive Plan. Concern was expressed relating to the upper density limit in the Community Activity Center and Mixed Use Center Districts and legislating based on a single project specific r s+ It was noted that the review had been triggered by a specific request, but actually showed that the city was out of compliance on density ranges in general. It was noted that the City was aGtually out ^f cempliance and thus Feview had "^^^ tFig,^ d by It was acknowledged that controls were in place, such as FAR, ate- height and lot size restrictions, that would control density. The Council agreed density was becoming more intense because people want different lifestyle options and this action was consistent with the Council's past actions. With regard to whether the City's infrastructure could handle higher densities, the Met Council would answer that question when it reviewed the requested amendment. Member Swenson introduced and moved adoption of Resolution No. 2014 -68, Approving Comprehensive Plan Amendments Regarding Residential Density for Mixed Use Areas, Building Height, Floor Area Ratio and Land Use. Member Brindle seconded the motion. Rollcall: Ayes: Brindle, Sprague, Swenson, Hovland Nays: Bennett Motion carried. VI.C. FINAL PUD REZONING, FINAL DEVELOPMENT PLAN, LENNAR CORPORATION, 6735 YORK AVENUE, AND 6712, 6708, 6704, 6700, AND 6628 XERXES AVENUE — RESOLUTION NO. 2014 -69 ADOPTED AND ORDINANCE NO. 2014 -6 MIXED USE AREA, BUILDING HEIGHTS FLOOR AREA RATIO AND LAND USE—ADOPTED Community Development Director Presentation Mr. Teague presented the request of Lennar Multifamily Communities, LLC, for approval of Final Rezoning to Planned Unit Development (PUD) and Final Development Plan to tear down the existing retail building at 6725 York Avenue and single - family homes at 6712, 6708, 6704, 6700, and 6628 Xerxes Avenue, and build a six - story, 240 -unit upscale apartment building with 11,500 square feet of retail on the first level. A Page 5 Minutes /Edina City Council /June 17, 2014 parking lot was proposed in front of the retail store on York Avenue with underground parking for residents under the apartments. Mr. Teague stated the Planning Commission, at its May 28, 2014 meeting, recommended approval of the Final Rezoning and Final Development Plan on a 5 -0 vote. Proponent Presentation Peter Chmielewski of Lennar and Aaron Roseth Russet of ESG Architects described minor changes to the Development Plan based on feedback from previous meetings. They have also worked closely with the City Engineer regarding other minor site changes. The exterior building materials exhibit was presented to the Council. It was indicated there had been no changes to the interior of the building since the last report. Erosion control and stormwater management issues were addressed by Mr. Roseth asset and Mr. Chmielewski, as well as landscape seeding to limit erosion of the soil, lighting during construction, bicycle amenities (racks /storage /servicing) inside of the building, energy code modeling to meet and exceed the State Energy Code, construction traffic route and parking, and shift in the sidewalk to create a larger landscaped buffer. The Council also discussed the Comprehensive Plan affordable housing goal of 212 new units and the fact that although the Council has extensively amended the Comprehensive Plan to approved PUDs, it has not yet required one new unit of affordable housing to be built." its a„ a dable ham. Mayor Hovland opened the public hearing at 9:52 p.m. Public Testimony No one appeared to comment. Member Swenson made a motion, seconded by Member Sprague to close the public hearing. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. Member Swenson introduced and moved adoption of Resolution No. 2014 -69, Approving Final Rezoning from PCD -3, Planned Commercial District, and R -1, Single Dwelling Unit District to PUD, Planned Unit Development and Final Development Plan for 6725 York Avenue and 6712, 6708, 6704, 6700, and 6628 Xerxes Avenue with additional conditions: 1. Subject to staff approval, the site must be developed and maintained in substantial conformance with the following plans, unless modified by the conditions below: • Site plan date stamped May 12, 2014 • Grading plan date stamped May 12, 2014 • Utility plan date stamped May 12, 2014 • Landscaping plan date stamped May 12, 2014 • Building elevations date stamped May 12, 2014 • Building materials board as presented at the Planning Commission and City Council meeting 2. Prior to issuance of a building permit, a final landscape plan must be submitted, subject to staff approval. The Final Landscape Plan must meet all minimum landscaping requirements per Section 36 -1436 through 36 -1462 of the City Code. The applicant must work with staff to develop a landscape plan for boulevard areas and if any existing trees are lost, they be replaced. Additionally, a performance bond, letter -of- credit, or cash deposit must be submitted for one and one -half times the cost amount for completing the required landscaping, screening, or erosion control measures. 3. Any plantings in the right -of -way of York Avenue must meet the requirements of Hennepin County. 4. The property owner is responsible for replacing any required landscaping that dies. 5. The Final Lighting Plan must meet all minimum requirements per Section 36 -1260 of the City Code. 6. Submit a copy of the Nine Mile Creek Watershed District permit. The City may require revisions to the approved plans to meet the District's requirements. Page 6 Minutes /Edina City Council /June 17, 2014 7. Sustainable design principles must be used per the applicant narrative. Attempts must be made to meet an energy savings goal of 10% over state energy code guidelines. 8. All signage for the site must meet the underlying PCD -3 Zoning District regulations. No signage shall be allowed on the Xerxes side of the project. 9. Compliance with all of the conditions outlined in the Director of Engineering's memo dated April 2, 2014; including that all public utility easements shall be dedicated to the City. 10. At the time of building permit application, compliance with all of the conditions outlined in the Chief Building Official's memo dated March 27, 2014 11. Continue to work with Hennepin County to secure a left turn in lane from south bound York Avenue 12. Approve a Zoning Ordinance Amendment regarding consideration of R -1 property within a PUD, prior to final rezoning 13. Final Rezoning is subject to a Zoning Ordinance Amendment creating the PUD, Planned Unit Development, for this site. 14. Metropolitan Council approval of the City Council approved Comprehensive Plan Amendment regarding land use, height, and density. 15. No construction traffic and construction parking shall be allowed on Xerxes Avenue. Member Brindle seconded the motion. Rollcall: Ayes: Brindle, Sprague, Swenson, Hovland Nays: Bennett Motion carried. Member Swenson made a motion to grant First and waive Second Reading adopting Ordinance No. 2014 -6, Amending the Zoning Ordinance to Establish the PUD -6, Planned Unit Development -6 District at 6725 York Avenue and 6712, 6708, 6704, 6700, and 6628 Xerxes Avenue. Member Sprague seconded the motion. Rollcall: Ayes: Brindle, Sprague, Swenson, Hovland Nays: Bennett Motion carried. Vll. COMMUNITY COMMENT Frank Lorenz, 7501 York Avenue South, Unit 720, commented regarding children and bicycling as discussed at the last City Council meeting. He felt that children, especially, were exposed to very dangerous conditions if they were forced to ride in the streets. VIII. REPORTS/ RECOMMENDATIONS VIII.A. REQUEST FOR PURCHASE— 2014 -2015 CITY INSURANCE CONTRACTS —APPROVED Human Resources Director Schaefer presented staff's recommendation to award the property casualty and worker's compensation insurance to LMCIT, including the optional volunteer coverage. Ms. Schaefer stated that they received bids from Travelers and LMCIT, and it was decided that LMCIT was more favorable. Despite higher deductibles, LMCIT provided broader property casualty coverage. Liam Biever, LMCIT, explained apportionment of dividends based on loss ratios and longevity in the program and available workers compensation coverage for volunteers with the passage of an ordinance. Ms. Schaefer answered questions of the Council relating to the difference in deductibles, aggregate cap, premiums, and dividends between Travelers and LMCIT. Attorney Knutson stated his recommendation for LMCIT. Member Sprague made a motion, seconded by Member Swenson, approving Request for Purchase, 2014 -2015 City Insurance Contracts, awarding the property casualty and worker's compensation insurance to LMCIT, including the optional volunteer coverage, for $1,232 and bond coverage for $2,176. Page 7 Minutes /Edina City Council /June 17, 2014 Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. VIII.B. ISSUING REQUEST FOR INTEREST FOR DEVELOPMENT PARTNER — 5146 EDEN AVENUE (FORMER EDINA PUBLIC WORKS SITE) —AUTHORIZED Mr. Neuendorf presented staff's recommendation, based on direction given at the Council's May 20, 2014 Work Session, to issue a Request for Interest (RFI) for development partner and conclude the work of the Grandview Community Advisory Team (CAT). He thanked the Grandview CAT and acknowledged their contribution. Manager Neal added the RFI methodology was flexible yet contained structure. The Council considered whether Phase 2, the School Bus Garage site, should be linked to this consideration to allow a broader vision. Manager Neal explained the School District owned that land and wanted a separate process to consider development proposals. The Council and Mr. Neuendorf discussed the development framework for this district. It was noted this area did not have a Small Area Plan and the CAT that drafted the RFI was not being asked to opine regarding selection of the developer .t. Mr. Neuendorf stated it seemed to be a good time to transition from the CAT to the Council. He recommended review of the responses by relevant internal staff and interview of those consultants by the Council. The Council discussed the RFI and selection process to consider the respondents for interview. It was noted the meeting would be open to the public and RFIs would be part of the public record. The Council supported the RFI promoting the notion of innovation and creativity with a mix of public and private uses. Member Swenson made a motion, seconded by Member Brindle, authorizing staff to issue a Request for Interest (RFI) for development partner and conclude the work of the Grandview Community Advisory Team. Ayes: Brindle, Swenson, Hovland Nays: Sprague, Bennett Motion carried. VIII.C. FLOOD PROTECTION AND CLEAN WATER IMPROVEMENT STUDY UPDATE— RECEIVED Environmental Engineer Bintner presented the findings of the 2014 Flood Protection and Clean Water Improvement Study, Part I and Part 2, noting it provided preliminary engineering and stormwater planning for six project areas to help solve flooding and water pollution issues designated in the City's 2011 Comprehensive Water Resources Management Plan (CWRMP). Mr. Bintner stated that one of the bigger issues was a change in floodwater risk factors in past years due to a 20 25% a4+-increase in the size of 50- and 100 -year storms the latter from 6 to 7.5 inches. Mr. Bintner described specific areas that have flood risk and potential next steps to address local flood risk. The Council asked questions of Mr. Bintner relating to Minnehaha Creek and other flood risk areas, flood protection options, and benefit of providing more on -site storage when considering redevelopment projects. Informational; no action required. WILD. EDINA ACTIVE ROUTES TO SCHOOL COMPREHENSIVE PLAN —APPROVED Katherine Bass, Edina Transportation Commission (ETC) Chair, presented the Active Routes to School Comprehensive Plan, noting the goals and updates since the last time the City Council reviewed this plan. She indicated there was great participation among the schools and the City and Bloomington Public Health. This was a national initiative to increase walking and biking to school. The two goals were getting more kids walking and bicycling to school and improving conditions where it was not safe for kids to do that. Ms. Bass noted the District required students within .7 miles not be bused to school, as they were in the walk zone (16% in Edina). The future vision was to allow youth to move independently and navigate in the community. Ms. Bass completed presentation of the Plan and short -, mid -, and long -term Page 8 Minutes /Edina City Council /June 17, 2014 recommendations. One additional short -term recommendation was to conduct a survey in southeast Edina to address the lack of safe routes for students. The Council and Ms. Bass discussed enforcement of school speed zones and signage. Ms. Bass indicated the School District's recommendations were much the same as in the past. The Council commended the ETC and Ms. Bass for this Plan and the positive results that have been seen with many more students biking /walking to school. Even when not considering the health benefits, it was noted that students tend to think bicycling was just more fun. The Council agreed that implementation of this campaign would enhance the quality of life in Edina. Member Brindle made a motion, seconded by Member Swenson, approving the Active Routes to School Comprehensive Plan. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. VIII.E. RESOLUTION NO. 2014 -63 —ADOPTED —SALE OF $5,680,000 G.O. UTILITY BOND, SERIES 2014A — AWARDED Mark Ruff, Ehlers & Associates, indicated that five bids had been received and the low bid was at 1.93% from BMO Capital Markets of Chicago, Illinois. The projection had been .25% higher, so this lower interest rate allowed the ability to reduce the issuance from $5,925,000 to $5,680,000. He explained the purpose of the bonds was to finance various water and stormwater projects. Mr. Ruff indicated the City's AAA rating was confirmed by rating agencies. Member Bennett introduced and moved adoption of Resolution No. 2014 -63, Relating to $5,680,000 General Obligation Utility Revenue Bonds, Series 2014A; Awarding the Sale, Fixing the Form and Details and Providing for the Execution and Delivery Thereof and Security Therefore. Member Sprague seconded the motion. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. VIILF. RESOLUTION 2014 -64 — ADOPTED — THE GROUND LEASE AND LEASE AGREEMENT PROVIDING FOR CONSTRUCTION OF THE EDINA SPORTS DOME, BRAEMAR OUTDOOR ICE RINK AND LEASE BY THE CITY AND IMPROVEMENTS TO BRAEMAR ARENA AND PAMELA PARK—AUTHORIZED Mr. Ruff presented the terms of the ground lease and lease agreement for the construction of the Edina Sports Dome, Braemar outdoor ice rink, and improvements to Braemar Arena, and Pamela Park. Manager Neal confirmed the revenue from the facilities would cover the operating costs and the lease payment would be made from a levy yet to be adopted. Member Sprague introduced and moved adoption of Resolution No. 2014 -64, Authorizing the Execution of a Ground Lease and a Lease Agreement Providing for the Construction of the Edina Sports Dome, Braemar Outdoor Ice Rink and the Lease Thereof by the City and Improvements to Braemar Arena and Pamela Park, and Approving the Form of a Resolution and an Official Statement. Member Brindle seconded the motion. Ayes: Brindle, Sprague, Swenson, Hovland Nay: Bennett Motion carried. VIII.G. ORDINANCE NO. 2014 -8 — ADOPTED — AMENDING CHAPTERS 4 AND 6 CONCERNING ON -SALE LIQUOR LICENSES WITH AMUSEMENT DEVICES Mr. Neuendorf stated that this was the second reading of this ordinance. He described the interest of Dave & Busters and reviewed the Council's concerns discussed with Dave & Busters and Simon Properties at the last meeting. To address the concern relating to the proximity to residential use, a minor change had been made to the ordinance to specify a minimum distance of 500 feet from a use of this type to the closest residential use. Mr. Neuendorf reference a letter from Dave & Busters that addressed the remaining concerns of the Council. Page 9 Minutes /Edina City Council /June 17, 2014 Jill Valachovic, Dave and Busters, addressed the Council's support for a more restrictive guardian policy on nights and weekends. She explained its guardian policy in Edina would be that anyone under 18 years of age must be accompanied by a parent /guardian at least 25 years or older, noting it would create a more family - friendly environment. The Council discussed container sizes for alcoholic beverages, i.e. pitchers of beer, beer tubes, etc. Ms. Valachovic stated the concern of Dave and Busters would be one of competitive disadvantage with similar facilities. The Council acknowledged that competitive disadvantage was a valid consideration and noted that Dave and Busters' had a good safety record at its other locations. Ms. Valachovic explained their house policy to address underage drinking and how that was prevented even with pitchers or tubes of beer. The Council discussed the request and indicated Dave and Busters should be treated the same as other like establishment. Member Sprague made a motion to grant Second Reading adopting Ordinance No. 2014 -8, Amending Chapters 4 and 6 of the Edina City Code Concerning Alcoholic Beverages and Amusement Devices, as revised to add a minimum distance setback from residential property. Member Brindle seconded the motion. Rollcall: Ayes: Brindle, Sprague, Hovland Nays: Bennett and Swenson Motion carried. VIII. H. RESOLUTION NO. 2014 -66 ADOPTED —ACCEPTING VARIOUS GRANTS AND DONATIONS Mayor Hovland explained that in order to comply with State Statutes, all donations to the City must be adopted by Resolution and approved by four favorable votes of the Council accepting the donations. Member Swenson introduced and moved adoption of Resolution No. 2014 -66 accepting various grants and donations. Member Bennett seconded the motion. Rollcall: Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. IX. CORRESPONDENCE AND PETITIONS IX.A. CORRESPONDENCE Mayor Hovland acknowledged the Council's receipt of various correspondence. IX. B. MINUTES: 1. HUMAN RIGHTS & RELATIONS COMMISSION, APRIL 29, 2014 2. PLANNING COMMISSION, MAY 14 AND MAY 28, 2014 3. PARK BOARD, MAY 13, 2014 4. HERITAGE PRESERVATION BOARD, MAY 13, 2014 Informational; no action required. X. AVIATION NOISE UPDATE— Received Xl. MAYOR AND COUNCIL COMMENTS — Received XI.A. CONSIDER PREPARATION OF AN AMENDMENT TO ORDINANCE —DIRECTED Member Sprague made a motion, seconded by Member Swenson, directing staff to prepare an ordinance amendment specifying that violation of Edina Code Chapter 26 was a petty misdemeanor. Ayes: Bennett, Brindle, Sprague, Swenson, Hovland Motion carried. Page 10 Minutes /Edina City Council /June 17, 2014 The Council asked the Police Department to coordinate the City's signage and informational campaign with Transportation Planner Nolan and the ETC's Communication Committee to ensure the public was clearly informed of the importance of respect for all transportation modes. XIL MANAGER'S COMMENTS — Received XIIL ADJOURNMENT There being no further business on the Council Agenda, Mayor Hovland declared the meeting adjourned at 12:34 a.m. Respectfully submitted, Debra A. Mangen, City Clerk Minutes approved by Edina City Council, July 1, 2014. James B. Hovland, Mayor Video Copy of the June 17, 2014, meeting available. Page 11 MINUTES OF THE WORK SESSION OF THE EDINA CITY COUNCIL HELD AT CITY HALL JUNE 17, 2014 5:30 P.M. Mayor Pro Tern Swenson called the meeting to order at 5:37 p.m. in the Community Room of City Hall. ROLLCALL Answering rollcall were Members Bennett, Brindle and Mayor Pro Tern Swenson. Mayor Hovland entered the meeting at 5:39 and Member Sprague entered the meeting at 5:41 p.m. Staff attending the meeting included: Annie Coyle, City Management Fellow; Lindy Crawford, City Management Fellow; Jordan Gilgenbach, Communications Coordinator; Karen Kurt, Assistant City Manager; Debra Mangen, City Clerk; Scott Neal, City Manager Mayor Pro Tern Swenson stated the purpose of the meeting was to receive a presentation from the City's consultant, David Beurle, future iQ Partners, on the upcoming visioning process. COMMUNITY VISION PROCESS INTRODUCTION — FUTURE IQ PARTNERS Assistant City Manager Kurt introduced, the City's consultant, David Beurle, future iQ Partners. Mr. Beurle gave background on his firm and the team that would be involved in the Edina Visioning Process. He then presented the proposed process for the City of Edina visioning project. The process would engage large numbers of stakeholders in data gathering. The process was based on data and research with high quality input, using a stratified approach, collecting qualitative and quantitative data. The final product would be an understandable visual representation of the future. Mr. Beurle outlined the six month process explaining each of the approximately eight steps involved in developing Edina's vision. The Council and staff discussed: expectations of the process, the Council's role, communications with the community, community mapping to engage the various stakeholders especially those with school aged children and diverse populations. Tentative dates of September 9 and 11, 2014 from 6:00 p.m. until 10:00 p.m. were set as the date for the initial workshops with the community. There being no further business, Mayor Hovland adjourned the meeting at 6:58 p.m. Respectfully submitted, Minutes approved by Edina City Council, July 1, 2014 Debra A. Mangen, City Clerk James B. Hovland, Mayor R55CKR2 LOGIS101 CITY OF EDINA 6/17/2014 12:38:21 Council Check Register by GL Page - 1 Council Check Register by Invoice & Summary 6119/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 49 6/19/2014 101355 BELLBOY CORPORATION 496.65 344606 43350000 5822.5512 COST OF GOODS SOLD LIQUOR 50TH ST SELLING 140.95 344608 6435500 58215515 COST OF GOODS SOLD MIX 50TH ST SELLING 249.76 345204 6439100 5862.5515 COST OF GOODS SOLD MIX VERNON SELLING 85.99 344607 90297000 5822.5515 COST OF GOODS SOLD MIX 50TH ST SELLING 95.23 345202 90339500 5862.5515 COST OF GOODS SOLD MIX VERNON SELLING 61.28 345203 90339700 5822.5512 COST OF GOODS SOLD LIQUOR 50TH ST SELLING 1,129.86 50 6/1912014 100648 BERTELSON OFFICE PRODUCTS 41.66 OFFICE SUPPLIES 345014 WO- 931287 -1 1170.6406 GENERALSUPPLIES HUMAN RESOURCES 175.96 OFFICE SUPPLIES 344681 WO- 937382 -1 7410.6513 OFFICE SUPPLIES PSTF ADMINISTRATION 127.12 OFFICE SUPPLIES 00002176 345011 WO- 938521 -1 5310.6513 OFFICE SUPPLIES POOL ADMINISTRATION 89.22 OFFICE SUPPLIES 00002176 345011 WO- 938521 -1 5710.6513 OFFICE SUPPLIES EDINBOROUGH ADMINISTRATION 56.58 CLIPBOARDS 00003058 344680 WO- 938975 -1 1490.6406 GENERALSUPPLIES PUBLIC HEALTH 236.29 OFFICE SUPPLIES / LINDMAN 00003059 344679 WO- 938981 -1 1400.6513 OFFICE SUPPLIES POLICE DEPT. GENERAL 10.80 OFFICE SUPPLIES 344678 WO- 939139 -1 1120.6406 GENERALSUPPLIES ADMINISTRATION 72.28 OFFICE SUPPLIES 344678 WO- 939139 -1 1170.6406 GENERALSUPPLIES HUMAN RESOURCES 42.60 CLIPBOARDS 345012 WO- 939935 -1 1600.6406 GENERALSUPPLIES PARKADMIN. GENERAL 70.19 SCISSORS, EASEL PADS 345013 WO- 940222 -1 1600.6406 GENERALSUPPLIES PARKADMIN. GENERAL 922.70 51 6/1912014 104020 DALCO 353.96 CUSTODIAL SUPPLIES 00001273 345022 2756544 1646.6406 GENERALSUPPLIES BUILDING MAINTENANCE 353.96 52 6/19/2014 106322 PROSOURCE SUPPLY 819.41 TISSUE, LINER ROLLS, TOWELS 00008066 344806 6769 5511.6511 CLEANING SUPPLIES ARENA BLDG /GROUNDS 518.35 CAN LINERS, TOWELS, GLOVES 00002157 345076 7059 5720.6511 CLEANING SUPPLIES EDINBOROUGH OPERATIONS 283.70 TISSUE, CAN LINERS 00002165 345075 7067 5720.6406 GENERALSUPPLIES EDINBOROUGH OPERATIONS 138.12 HOT CUPS, GLOVES 00002170 345074 7070 5730.6406 GENERALSUPPLIES EDINBOROUGH CONCESSIONS 596.40 SOAP, LINERS, TISSUE 00002058 344977 7076 5761.6511 CLEANING SUPPLIES CENTENNIAL LAKES OPERATING 929.45 TISSUE, TOWELS, LINERS 00002058 344976 7091 5761.6511 CLEANING SUPPLIES CENTENNIAL LAKES OPERATING 3,285.43 53 6119/2014 120627 VISTAR CORPORATION 46.68 CONCESSION PRODUCT 344774 39242977 5520.5510 COST OF GOODS SOLD ARENA CONCESSIONS 26.01 CONCESSION PRODUCT 345133 39324939 5520.5510 COST OF GOODS SOLD ARENA CONCESSIONS 118.37 CONCESSION PRODUCT 345134 39412766 5520.5510 COST OF GOODS SOLD ARENA CONCESSIONS 724.12 CONCESSION PRODUCT 345135 39731385 5520.5510 COST OF GOODS SOLD ARENA CONCESSIONS 915.18 R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 63 6/19/2014 120627 VISTAR CORPORATION Continued... 383703 6/1912014 133644 A DYNAMIC DOOR CO INC. 1,804.63 RAMP DOOR REPAIRS 345001 21406043 1375.6103 PROFESSIONAL SERVICES 1,804.63 383704 6/1912014 133622 AARP DRIVER SAFETY PROGRAM 280.00 DRIVING COURSE 344777 060514 1628.4392.09 SENIOR SPECIAL EVENTS 280.00 383705 6119/2014 124613 ABM JANITORIAL - NORTH CENTRAL INC. 2,753.75 MAY 2014 SERVICE 345196 6745736 1551.6103 PROFESSIONAL SERVICES 2,753.75 JUNE 2014 SERVICE 345197 6745738 1551.6103 PROFESSIONAL SERVICES 5,507.50 383706 6119/2014 102971 ACE ICE COMPANY 102.00 ICE FOR TASTE OF EDINA 344849 1785885 5842.6406 GENERAL SUPPLIES 48.40 344603 1793177 5822.5515 COST OF GOODS SOLD MIX 119.20 344604 1793647 5862.5515 COST OF GOODS SOLD MIX 99.60 344605 1793648 5842.5515 COST OF GOODS SOLD MIX 62.80 345201 1795132 5842.5515 COST OF GOODS SOLD MIX 104.40 345200 1795133 5862.5515 COST OF GOODS SOLD MIX 112.00 345199 1795467 5862.5515 COST OF GOODS SOLD MIX 92.10 345198 1795468 5842.5515 COST OF GOODS SOLD MIX 740.50 383707 611912014 129468 ACME TOOLS 99.00 BATTERIES 00001147 344948 2661155 5913.6406 GENERAL SUPPLIES 99.00 383708 6/1912014 100617 ADAM'S PEST CONTROL 26.00 PEST CONTROL 344989 885365 5421.6102 CONTRACTUAL SERVICES 28.00 383709 6/19/2014 131688 ADLER, LAURA 18.97 REFRESHMENTS 344949 052714 1263.6106 MEETING EXPENSE 32.48 MILEAGE REIMBURSEMENT 344949 052714 1263.6107 MILEAGE OR ALLOWANCE 51.45 383710 6/19/2014 132133 AFFILIATED MATERIEL SERVICES 179.94 AMBULANCE SUPPLIES 00003794 344667 734320 -00 1470.6510 FIRST AID SUPPLIES 6/17/2014 12:38:21 Page - 2 Business Unit PARKING RAMP SENIOR CITIZENS CITY HALL GENERAL CITY HALL GENERAL YORK SELLING 50TH ST SELLING VERNON SELLING YORK SELLING YORK SELLING VERNON SELLING VERNON SELLING YORK SELLING DISTRIBUTION GRILL ENVIRONMENT ENVIRONMENT FIRE DEPT. ' RAL R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 — 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383710 6/19/2014 132133 AFFILIATED MATERIEL SERVICES Continued... 179.94 383711 6119/2014 130792 AIRGAS NATIONAL CARBONATION 367.18 CO2 345002 31458465 5311.6545 CHEMICALS 367.18 383712 611912014 102715 ALLEGRA EDINA 409.27 CAFR PRINTING 344778 104700 1160.6575 PRINTING 409.27 383713 6/19/2014 106991 AL'S COFFEE COMPANY 70.15 COFFEE 345003 34223 5730.5510 COST OF GOODS SOLD 70.15 383714 611912014 100665 AMSAN 31.77 CUSTODIAL PARTS 00001198 344668 311936058 1646.6406 GENERAL SUPPLIES 31.77 383715 6/19/2014 133030 ANCHOR BLOCK COMPANY 108.75 8" MOD DOUBLE ENDS 344669 1- 396289 47083.6710 EQUIPMENT REPLACEMENT 108.75 383716 6/19/2014 134340 ANDERSON, JULIE 50.00 GROUP LESSON CANCELLATION 345138 REFUND 5401.4602 LESSONS 50.00 383717 6/19/2014 119976 AP LAWN 1,455.00 CLEANED OUT SHRUBS /FLOWER BB=2059 344950 CTYED -0514 5765.6103 PROFESSIONAL SERVICES 1,624.75 CLEANED OUT SHRUBS /FLOWER BB =2059 344950 CTYED -0514 5761.6103 PROFESSIONAL SERVICES 3,079.75 383718 6/19/2014 102172 APPERT'S FOODSERVICE 234.52 CONCESSION PRODUCT 345006 405300550 5730.5510 COST OF GOODS SOLD 2,214.18 CONCESSION PRODUCT 345004 406020143 5320.5510 COST OF GOODS SOLD 631.36 FOOD 344990 406060461 5421.5510 COST OF GOODS SOLD 422.40 CONCESSION PRODUCT 345005 406060483 5730.5510 COST OF GOODS SOLD 3,502.46 383719 611912014 102646 AQUA LOGIC INC. 743.27 START -UP CHEMICALS 345007 42213 5311.6545 CHEMICALS 6/17/2014 12:38:21 Page- 3 Business Unit POOL OPERATION FINANCE EDINBOROUGH CONCESSIONS BUILDING MAINTENANCE UTLEY PK BATHROOM RENOVATION GOLF REVENUES PROMENADE EXPENSES CENTENNIAL LAKES OPERATING EDINBOROUGH CONCESSIONS POOL CONCESSIONS GRILL EDINBOROUGH CONCESSIONS POOL OPERATION R55CKR2 LOGIS101 CITY OF EDINA 6/17/2014 12:38:21 Council Check Register by GL Page- 4 Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383719 6/19/2014 102646 AQUA LOGIC INC. Continued... 743.27 383720 6/1912014 123368 ARENA SERVICES AND PRODUCTS 1,656.56 DASHER BOARD CLEANING 344670 2476 5511.6136 PROFESSIONAL SVC - OTHER ARENA BLDG /GROUNDS 1,656.56 383721 6/19/2014 132031 ARTISAN BEER COMPANY 843.90 344853 53548 5822.5514 COST OF GOODS SOLD BEER 50TH ST SELLING 705.00 344852 54341 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 1,124.00 344851 54342 5862.5514 COST OF GOODS SOLD BEER VERNON SELLING 50.75 344850 54343 5862.5514 COST OF GOODS SOLD BEER VERNON SELLING 2,723.65 383722 6/19/2014 102774 ASPEN WASTE SYSTEMS 263.22 1- 14635V 4 WASTE SERVICE 344671 060114 7411.6182 RUBBISH REMOVAL PSTF OCCUPANCY 263.22 383723 6/19/2014 132408 AUTHENTIC EDGE LLC 1,308.00 COACHING 345139 AE1047 1556.6104 CONFERENCES & SCHOOLS EMPLOYEE SHARED SERVICES 1,308.00 COACHING FEE 344672 AE1051 1556.6104 CONFERENCES & SCHOOLS EMPLOYEE SHARED SERVICES 412.25 COACHING SESSION 344673 AE1055 1170.6104 CONFERENCES & SCHOOLS HUMAN RESOURCES 3,028.25 383724 6/19/2014 101195 AUTO ELECTRIC OF BLOOMINGTON INC. 220.00 ALTERNATOR 00005379 344674 155700 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 220.00 363725 6119/2014 100638 BACHMAN'S 171.91 PLANTS FOR STREETSCAPE 00005326 344675 513202 4091.6406 GENERAL SUPPLIES GRANDVIEW MAINTENANCE 330.91 MULCH 00006168 344991 514326 5422.6541 PLANTINGS & TREES MAINT OF COURSE & GROUNDS 113.62 PLANTS FOR STREETSCAPE 00005328 344676 515318 4091.6406 GENERAL SUPPLIES GRANDVIEW MAINTENANCE 616.44 383726 6/19/2014 129624 BARNA GUZY & STEFFEN LTD 448.00 MAY 2014 SERVICES 345140 132110 1170.61 D3 PROFESSIONAL SERVICES HUMAN RESOURCES 448.00 383727 6/1912014 100643 BARR ENGINEERING CO. 5,452.00 FEMA REVIEW 345104 23270354.00 -206 5960.6103 PROFESSIONAL SERVICES ENGINEER SERVICES - STORM 484.50 WATER RESOURCES MAPPING 345105 23271068.00 -1' "" 5924.6103 PROFESSIONAL SERVICES ENGINEER CES - WATER R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383727 6/19/2014 100643 BARR ENGINEERING CO. Continued... 5,936.50 383728 6/19/2014 102196 BATTERIES PLUS 60.95 BATTERY 344779 018- 339327 1553.6530 REPAIR PARTS 60.95 383729 6/19/2014 117379 BENIEK PROPERTY SERVICES INC. 618.19 LAWN CARE 344677 143011 7411.6136 SNOW & LAWN CARE 618.19 383730 6/19/2014 129208 BENJAMIN FRANKLIN PLUMBING 6,650.00 SEWER REPAIR - 6105 YORK 345106 A137685 03483.1705.21 CONSULTING INSPECTION 6,650.00 383731 6/19/2014 127986 BERGMAN, MARGE 55.44 MILEAGE REIMBURSEMENT 344780 061114 1280.6107 MILEAGE OR ALLOWANCE 55.44 383732 6/19/2014 131191 BERNATELLO'S PIZZA INC. 216.00 PIZZA 345010 D28IN2181 5730.5510 COST OF GOODS SOLD 504.00 PIZZA 345008 D28IN2214 5320.5510 COST OF GOODS SOLD 144.00 PIZZA 345009 D28IN2215 5730.5510 COST OF GOODS SOLD 864.00 363733 6/19/2014 125139 BERNICK'S 128.70 CONCESSION PRODUCT 345107 137064 5520.5510 COST OF GOODS SOLD 717.60 344855 140567 5842.5514 COST OF GOODS SOLD BEER 279.48 344854 140568 5822.5514 COST OF GOODS SOLD BEER 1,125.78 383734 6/19/2014 122688 BMK SOLUTIONS 23.55 OFFICE SUPPLIES 00001437 344682 98073 1552.6406 GENERAL SUPPLIES 23.55 383735 6/19/2014 105367 BOUND TREE MEDICAL LLC 238.80 ANTIMICROBIAL WIPES 345015 81401642 5710.6610 SAFETY EQUIPMENT 1,506.08 AMBULANCE SUPPLIES 00003788 344683 81423792 1470.6510 FIRSTAID SUPPLIES 27.24 00003777 344684 81423793 1470.6510 FIRSTAID SUPPLIES 159.45 00003768 344685 81426560 1470.6510 FIRSTAID SUPPLIES 410.90 00003792 344686 81433381 1470.6510 FIRSTAID SUPPLIES 6/17/2014 12:38:21 Page- 5 Business Unit EQUIPMENT OPERATION GEN PSTF OCCUPANCY EDINA TERRACE NHOOD RECON SUPERVISION & OVERHEAD EDINBOROUGH CONCESSIONS POOL CONCESSIONS EDINBOROUGH CONCESSIONS ARENA CONCESSIONS YORK SELLING BOTH ST SELLING CENT SVC PW BUILDING EDINBOROUGH ADMINISTRATION FIRE DEPT. GENERAL FIRE DEPT. GENERAL FIRE DEPT. GENERAL FIRE DEPT. GENERAL R55CKR2 LOGIS101 CITY OF EDINA 6/17/2014 12:38:21 Council Check Register by GL Page - 6 Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 363736 6/19/2014 105367 BOUND TREE MEDICAL LLC Continued... 703.10 00003793 344687 81435793 1470,6510 FIRSTAID SUPPLIES FIRE DEPT. GENERAL 2,108.73 00003795 344689 81451162 1470.6510 FIRSTAID SUPPLIES FIRE DEPT. GENERAL 122.99 00003795 344688 81451163 1470.6510 FIRSTAID SUPPLIES FIRE DEPT. GENERAL 5,277.29 383736 6/1912014 119351 BOURGET IMPORTS 294.50 344856 120154 5822.5513 COST OF GOODS SOLD WINE 50TH ST SELLING 1,008.98 344857 120186 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 814.50 344609 120188 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 348.50 345205 120273 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 2,466.48 383737 6/1912014 100659 BOYER TRUCK PARTS 78.96 COUPLERS 00005275 345141 847047 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 38.74 INDICATOR 00005372 344690 857806 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 29.88 DIODE 344781 860681 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 147.58 383738 6119/2014 122318 BRAEMAR GOLF COURSE 100.00 9/24 & 9/25 ROOM RENTAL 345142 DEPOSIT 5510.6136 PROFESSIONAL SVC - OTHER ARENAADMINISTRATION 100.00 383739 6/19/2014 100664 BRAUN INTERTEC 822.31 CONSTRUCTION MATERIALS TESTING 345109 B000322 01408.1705.21 CONSULTING INSPECTION WARDEN AVE 822.32 CONSTRUCTION MATERIALS TESTING 345109 B000322 01407.1705.21 CONSULTING INSPECTION HAWKES NHOOD RECON 1,644.62 CONSTRUCTION MATERIALS TESTING 345109 B000322 01409.1705.21 CONSULTING INSPECTION WALNUT RIDGE NHOOD RECON 1,860.50 OLINGER BLVD MILL & OVERLAY 345108 8000411 01423.1705.20 CONSULTING DESIGN OLINGER BLVD M &O 605.25 CONCRETE TESTING 345111 8000473 10098.1705.21 CONSULTING INSPECTION BR8 78TH STREET BRIDGE REHAB 605.25 CONCRETE TESTING 345111 8000473 10099.1705.21 CONSULTING INSPECTION BR9 GUS YOUNG BRIDGE REHAB 402.00 CONSTRUCTION MATERIALS TESTING 345110 8000633 01411.1705.21 CONSULTING INSPECTION EDINA TERRACE NHOOD RECON 455.25 CONCRETE TESTING 345016 8000750 47083.6710 EQUIPMENT REPLACEMENT UTLEY PK BATHROOM RENOVATION 7,217.50 383740 6/1912014 134344 BRAY, ALISON 289.00 ART CLASS REFUND 345143 REFUND 5101.4607 CLASS REGISTRATION ART CENTER REVENUES 289.00 383741 6/1912014 131337 BREMER BANK 880.66 REVENUE BOND SERIES 20128 344826 061114 3301.8220 INTEREST BONDS FIR DS REVENUES 880.66 R55CKR2 LOGIS101 CITY OF EDINA 100678 CARLSON PRINTING CO. 6/17/2014 12:38:21 Council Check Register by GL Page- 7 344951 00100886 Council Check Register by Invoice & Summary 271.00 6/19/2014 - 6/19/2014 383746 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383741 611912014 131337 BREMER BANK CEMENTTOOLS 00001074 Continued... 1352681 383742 6/19/2014 121118 BRUESKE, JEFF 200.00 CL PERFORMANCE 6/24/14 344943 060114 5760.6136 PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE 200.00 383743 6/19/2014 1,061.24 1,061.24 383744 6/19/2014 457.35 37.10 205.00 6,835.10 460.00 AV 7r 132114 BURNETT, JASON REVENUE BOND SERIES 2012A 119455 CAPITOL BEVERAGE SALES 344827 061114 344611 340832 344610 345075 344860 345210 344859 345211 344612 346072 344858 349579 345206 350720 383745 6119/2014 100678 CARLSON PRINTING CO. 271.00 CLUBHOUSE BROCHURES 344951 00100886 271.00 383746 6/19/2014 101616 CEMSTONE PRODUCTS CO. 128.58 CEMENTTOOLS 00001074 344691 1352681 128.58 383747 611912014 117433 CENTURY FENCE CO. 16,139.70 BIKE PATH RESTRIPING 00002549 345112 3334 -Z 16,139.70 383748 6119/2014 123898 CENTURYLINK 590.02 612 E01 -0426 345020 0426 -6/14 104.93 612 E23 -0652 GV -911 345144 0652 -6/14 58.82 952 835 -1161 345018 1161 -6/14 205.51 952 835 -6661 345017 6661 -6/14 590.02 612 E12 -6797 345019 6797 -6/14 1,549.30 383749 6119/2014 100685 CITY OF EDEN PRAIRIE 3301.8220 5822.5514 5822.5515 5822.5514 5842.5514 5842.5514 5842.5515 5822.5514 5760.6575 1301.6556 01254.1705.30 1554.6168 2310.6406 5720.6188 1552.6188 1554.6188 INTEREST BONDS PIR DS REVENUES COST OF GOODS SOLD BEER COST OF GOODS SOLD MIX COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD MIX COST OF GOODS SOLD BEER PRINTING TOOLS CONTRACTOR PAYMENTS TELEPHONE GENERAL SUPPLIES TELEPHONE TELEPHONE TELEPHONE 50TH ST SELLING 50TH ST SELLING 50TH ST SELLING YORK SELLING YORK SELLING YORK SELLING 50TH ST SELLING CENTENNIAL LAKES ADMIN EXPENSE GENERAL MAINTENANCE A254 W70THST & METRO BLVD BIKE CENT SERV GEN - MIS E911 EDINBOROUGH OPERATIONS CENT SVC PW BUILDING CENT SERV GEN - MIS R55CKR2 LOGIS101 CITY OFEDINA 6/17/201412:38:21 Council Check Register by GL Page - 8 Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383749 6/1912014 100685 CITY OF EDEN PRAIRIE Continued... 150.00 CL PERFORMANCE 6/25/14 344944 060114 5760.6136 PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE 150.00 383750 611912014 120433 COMCAST 18.06 8772 10 614 0161120 344782 161120 -5/14 5510.6103 PROFESSIONAL SERVICES ARENA ADMINISTRATION 29.01 8772 10 614 0220686 345021 220686 -6/14 5710.6105 DUES & SUBSCRIPTIONS EDIN BOROUGH ADMINISTRATION 47.07 383751 6/1912014 101329 CONSTRUCTION MATERIALS INC. 52.56 REBAR 00001162 344692 0110275 -IN 47083.6710 EQUIPMENT REPLACEMENT UTLEY PK BATHROOM RENOVATION 52.56 383752 6/19/2014 100695 CONTINENTAL CLAY CO. 753.73 CERAMIC SUPPLIES 00009334 344992 INV000088287 5110.6564 CRAFT SUPPLIES ART CENTER ADMINISTRATION 753.73 383753 6/19/2014 100699 CULLIGAN BOTTLED WATER 20.48 114 - 09855685 -4 344693 5/2014 7411.6406 GENERAL SUPPLIES PSTF OCCUPANCY 20.48 383754 6/19/2014 100701 CUSHMAN MOTOR CO. INC, 220.00 SPRING TINE REPLACEMENTS 00001269 344952 163312 1642.6103 PROFESSIONAL SERVICES FIELD MAINTENANCE 220.00 383755 6/19/2014 130169 CUSTOM BUSINESS FORMS 848.07 SR NEWSLETTER 344694 298050 1628.6575 PRINTING SENIOR CITIZENS 848.07 383756 6/1912014 133169 DAIKIN APPLIED 780.38 INSTALL VENT LIMITERS 344695 3009235 5511.6136 PROFESSIONAL SVC - OTHER ARENA BLDG /GROUNDS 780.38 383757 6/19/2014 102478 DAY DISTRIBUTING CO. 1,219.85 344614 754677 5822.5514 COST OF GOODS SOLD BEER 50TH ST SELLING 60.00 344613 754678 5822.5515 COST OF GOODS SOLD MIX 50TH ST SELLING 1,082.10 344861 755674 5862.5514 COST OF GOODS SOLD BEER VERNON SELLING 49.20 344862 755675 5822.5515 COST OF GOODS SOLD MIX 50TH ST SELLING 834.20 344863 755676 5822.5514 COST OF GOODS SOLD BEER 50TH ST SELLING 4,907.80 344864 755677 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 8,153.15 R55CKR2 LOGIS101 70.65 CITY OF EDINA 509183 5421.5510 222.71 Council Check Register by GL 383761 Council Check Register by Invoice & Summary 101349 DEPARTMENT OF NATURAL RESOURCES 6/19/2014 — 6/19/2014 375.00 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383767 6/1912014 102478 DAY DISTRIBUTING CO. Continued... 383758 6/19/2014 102531 DEX MEDIA EAST INC. 131661 DELANEY CONSULTING LLC 4,400.00 CONSULTING & TRAINING 344993 1303 5410.6103 PROFESSIONAL SERVICES 4,400.00 101.75 383759 6/19/2014 383763 100718 DELEGARD TOOL CO. 100571 DIAMOND VOGEL PAINTS 114.22 THERMOMETER, STYLUS 00005307 344783 909851 1553.6556 TOOLS 344696 802152852 82.95 MACHINIST SCRIBES 00005311 345024 911087 1553.6556 TOOLS 114.70 HAMERS 00005311 345023 911112 1553.6556 TOOLS 123162 DISH 311.87 383760 6/1912014 8255 7070 8142 2639 100720 DEN NYS 5TH AVE. BAKERY 060414 7411.6406 81.86 344995 508758 5421.5510 COST OF GOODS SOLD 383765 70.20 BAKERY 344994 508759 5421 5510 COST OF GOODS SOLD COST OF GOODS SOLD PROFESSIONAL SERVICES ADVERTISING OTHER SIGNS & POSTS GENERALSUPPLIES CONSULTING DESIGN 6/17/2014 12:38:21 Page- 9 Business Unit GOLF ADMINISTRATION EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN GRILL GRILL GRILL MILLPOND LK VEGETATION CONTROL CENTENNIAL LAKES ADMIN EXPENSE PAVEMENT MARKINGS PSTF OCCUPANCY P23 50TH &FR PARKING&WAYFI N DING PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT PROFESSIONAL SERV - LEGAL CENTENNIAL TIF DISTRICT 70.65 344996 509183 5421.5510 222.71 383761 6/1912014 101349 DEPARTMENT OF NATURAL RESOURCES 375.00 CONTROL AQUATIC PLANTS 344953 2014 PERMIT 5938.6103 375.00 383762 6119/2014 102531 DEX MEDIA EAST INC. 101.75 344954 651972955 -5/14 5760.6122 101.75 383763 6119/2014 100571 DIAMOND VOGEL PAINTS 1,558.50 ROAD PAINT 00001226 344696 802152852 1335.6531 1,558.50 383764 6119/2014 123162 DISH 53.47 8255 7070 8142 2639 344697 060414 7411.6406 53.47 383765 6119/2014 129167 DO- GOOD.BIZ INC 177.80 PARKING IMPROVEMENT FLYERS 345145 6386 -01 44012.1705.20 177.80 383766 6/19/2014 100730 DORSEY & WHITNEY LLP 16,145.25 TAX INCREMENT LEGISLATION 345146 1947325 9238.6131 1,040.00 HOOTER LEGAL - FINAL 345147 1949292 9232.6131 COST OF GOODS SOLD PROFESSIONAL SERVICES ADVERTISING OTHER SIGNS & POSTS GENERALSUPPLIES CONSULTING DESIGN 6/17/2014 12:38:21 Page- 9 Business Unit GOLF ADMINISTRATION EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN GRILL GRILL GRILL MILLPOND LK VEGETATION CONTROL CENTENNIAL LAKES ADMIN EXPENSE PAVEMENT MARKINGS PSTF OCCUPANCY P23 50TH &FR PARKING&WAYFI N DING PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT PROFESSIONAL SERV - LEGAL CENTENNIAL TIF DISTRICT R55CKR2 LOGIS101 CITY OF EDINA 6/17/2014 12:38:21 Council Check Register by GL Page- 10 Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383766 6/19/2014 100730 DORSEY & WHITNEY LLP Continued... 37,287.36 PENTAGON PK REDEVELOPMENT 345149 1949293 9240.6131 PROFESSIONAL SERV - LEGAL PENTAGON PARK DISTRICT 10,064.00 TAX INCREMENT LEGISLATION 345148 1949402 9238.6131 PROFESSIONAL SERV - LEGAL SOUTHDALE 2 TIF DISTRICT 64,536.61 383767 6/19/2014 100731 DPC INDUSTRIES INC. 437.38 CAUSTIC SODA 345113 827000848 -14 5311.6545 CHEMICALS POOL OPERATION 437.38 383768 6/19/2014 120696 DRAPER, LAURENE 63.26 DRY ERASE BOARD 345150 REIMBURSE 1400.6406 GENERAL SUPPLIES POLICE DEPT. GENERAL 63.26 383769 6/19/2014 100737 E. H. RENNER & SONS 10,928.00 EMERGENCY REPAIR -WELL 13 00001150 344955 137540000 5913.6103 PROFESSIONAL SERVICES DISTRIBUTION 10,928.00 383770 6/1912014 100740 EARL F. ANDERSEN INC. 339.00 SIGN POSTS 00001870 344956 0104468 -IN 1647.6103 PROFESSIONAL SERVICES PATHS & HARD SURFACE 444.50 SIGN POST STABILIZERS 00001045 344698 0104907 -IN 1325.6531 SIGNS & POSTS STREET NAME SIGNS 783.50 383771 6/19/2014 132810 ECM PUBLISHERS INC. 300.00 EDINA ART CENTER AD 344699 105818 5110.6122 ADVERTISING OTHER ART CENTER ADMINISTRATION 300.00 AQUATIC CENTER AD 345025 105819 5310.6122 ADVERTISING OTHER POOL ADMINISTRATION 320.00 AQUATIC SUMMER PASSES AD 345026 107964 5310.6122 ADVERTISING OTHER POOL ADMINISTRATION 53.20 PUBLISH NOTICE 344958 108864 1185.6120 ADVERTISING LEGAL LICENSING, PERMITS & RECORDS 320.00 AQUATIC SUMMER PASSES AD 345027 110154 5310.6122 ADVERTISING OTHER POOL ADMINISTRATION 929.86 EDINA LIQUOR AD 344957 110260 5862.6122 ADVERTISING OTHER VERNON SELLING 929.87 EDINA LIQUOR AD 344957 110260 5822.6122 ADVERTISING OTHER 50TH ST SELLING 929.87 EDINA LIQUOR AD 344957 110260 5842.6122 ADVERTISING OTHER YORK SELLING 4,082.80 383772 6/19/2014 122387 ECOLAB 1,163.92 CLEANING CADDY 345028 5251540 5311.6511 CLEANING SUPPLIES POOL OPERATION 1,163.92 383773 6/19/2014 124503 EDEN PRAIRIE WINLECTRIC CO. 93.84 UNDERGROUND WIRE 00001221 344700 10953800 1322.6406 GENERAL SUPPLIES STREET LIGHTING ORNAMENTAL 93.84 R55CKR2 LOGIS101 CITY OF EDINA 6/17/2014 12:38:21 Council Check Register by GL Page- 11 Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383774 6/19/2014 103594 EDINALARM INC. Continued.., 399.07 ALARM MONITORING 344998 88773 5210.6250 ALARM SERVICE GOLF DOME PROGRAM 436.05 ALARM MONITORING 344997 88866 5420.6250 ALARM SERVICE CLUB HOUSE 835.12 383775 6/19/2014 100049 EHLERS 410.00 50 1FRANCE P -23 IMPROVEMENT 345153 348283 9232.6136 PROFESSIONAL SVC - OTHER CENTENNIAL TIF DISTRICT 7,021.25 PENTAGON PK TIF PLANNING 345154 348284 9240.6131 PROFESSIONAL SERV - LEGAL PENTAGON PARK DISTRICT 307.50 TIF SPECIAL LEGISLATION 345152 348285 9238.6136 PROFESSIONAL SVC - OTHER SOUTHDALE 2 TIF DISTRICT 307.50 TIF CALCULATIONS 345151 348286 9232.6136 PROFESSIONAL SVC - OTHER CENTENNIAL TIF DISTRICT 6,046.25 383776 6119/2014 100747 ELSMORE SWIM SHOP 3,150.35 LIFEGUARD SUITS 345029 95838 5311.6201 LAUNDRY POOL OPERATION 3,150.35 383777 6/19/2014 100018 EXPERTTBILLING 6,837.00 MAY 2014 BILLINGS 344701 1407 1470.6103 PROFESSIONAL SERVICES FIRE DEPT. GENERAL 6,837.00 383778 6119/2014 104195 EXTREME BEVERAGE LLC. 33.50 344615 259 -1165 5822.5515 COST OF GOODS SOLD MIX 50TH ST SELLING 33.50 383779 6/19/2014 100146 FACTORY MOTOR PARTS COMPANY 102.88 ROTOR ASSEMBLIES 344786 1- 4458107 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 40.06 DEL 8 -2289 345030 1- 4462697 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 201.76 SUPER DUTY PADS, ROTORS 344785 69- 140525 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 152.32 SUPER DUTY PADS, ROTORS 344787 69- 141197 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 19.03 BEAM W SPOILER 345031 69- 141344 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 49.44 MTC MM929 344702 75- 127819 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 565.49 383780 6/19/2014 106035 FASTENAL COMPANY 7.83 BOLTS 00005103 344703 MNTC2123781 1301.6406 GENERAL SUPPLIES GENERAL MAINTENANCE 67.51 TRUBOLTS 00001043 344704 MNTC2123897 1375.6406 GENERAL SUPPLIES PARKING RAMP 270.04 TRUBOLTS 00001043 344705 MNTC2123979 1375.6406 GENERALSUPPLIES PARKING RAMP 26.52 NUTS, BOLTS 00001196 345032 MNTC2124373 5311.6406 GENERAL SUPPLIES POOL OPERATION 14.91 RAMSET 00001196 345033 MNTC2124392 5311.6406 GENERAL SUPPLIES POOL OPERATION 386.81 R55CKR2 LOGIS101 344865 9019 CITY OF EDINA 45.00 383788 6/19/2014 Council Check Register by GL 67.46 SHOES Council Check Register by Invoice & Summary 5440.5511 70.17 SHRITS 345157 5628777 5440.5511 6/19/2014 - 6/19/2014 SHOES Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383781 6/19/2014 126725 FORTNER, NOLA 102003 FASTSIGNS BLOOMINGTON Continued... ART WORK SOLD 344960 462.35 MENU BOARD MAGNETS 345034 190 -66200 5320.6406 GENERALSUPPLIES 462.35 134216 FRISCHE, HELENE 383782 6/19/2014 344828 100756 FEDEX 1600.4390.29 29.98 SHIPPING CHARGES 344706 2- 668 -45396 1170.6406 GENERAL SUPPLIES 29.98 383783 6/19/2014 126004 FERGUSON WATERWORKS 3,679.11 METERS 00001152 344959 0083823 5917.6530 REPAIR PARTS 3,679.11 383784 6/19/2014 120831 FIRST SCRIBE INC. 425.00 ROWAY 345114 2462902 1263.6103 PROFESSIONAL SERVICES 425.00 383785 6/1912014 133685 FISCHER MINING LLC 424.65 FILL SAND 00001203 344708 10914 5939.6406 GENERAL SUPPLIES 833.76 FILL SAND 00001215 344707 10942 5939.6406 GENERAL SUPPLIES 1,258.41 383786 6/1912014 132866 FLAGSHIP RECREATION LLC 561.95 PLAYGROUND PARTS 344709 F3089 1646.6530 REPAIR PARTS 561.95 383787 6119/2014 129500 FLAT EARTH BREWING CO. 45.00 344865 9019 5862.5514 45.00 383788 6/19/2014 101475 FOOTJOY 67.46 SHOES 345155 5625089 5440.5511 70.17 SHRITS 345157 5628777 5440.5511 80.68 SHOES 345156 5631933 5440.5511 218.31 383789 6119/2014 126725 FORTNER, NOLA 32.83 ART WORK SOLD 344960 060514 5101.4413 32.83 383790 6/19/2014 134216 FRISCHE, HELENE 190.00 PROGRAM CANCELLATION 344828 REFUND 1600.4390.29 6/17/2014 12:38:21 Page- 12 Business Unit POOL CONCESSIONS HUMAN RESOURCES METER REPAIR ENVIRONMENT STORM SEWER SPECIAL PROJECTS STORM SEWER SPECIAL PROJECTS BUILDING MAINTENANCE COST OF GOODS SOLD BEER VERNON SELLING COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES ART WORK SOLD HIGHLANDS EXPLORERS ART CENTER REVENUES PARKADMIN :RAL R55CKR2 LOGIS101 60.68 344829 CITY OF EDINA 761.77 Council Check Register by GL 100768 GARTNER REFRIGERATION & MFG INC Council Check Register by Invoice & Summary REPLACE MIST ELIMINATORS 344710 44883 4,358.00 6119/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383790 6119/2014 262.81 134216 FRISCHE, HELENE 345158 40617221 Continued... 262.81 190.00 383794 6/1912014 383791 6119/2014 100764 G & K SERVICES 161.85 PARTS 344788 053114 48.04 22.69 344829 053114 1646.6201 LAUNDRY 98.46 344829 053114 1646.6201 LAUNDRY 136.78 344829 053114 1552.6511 CLEANING SUPPLIES PAVEMENT CONDITION SURVEY 187.40 1801 344829 053114 1553.6201 LAUNDRY 210.90 383796 6/19/2014 344829 053114 1301.6201 LAUNDRY 1931 99.66 344829 053114 5511 6201 5893793 5913.6201 450002.6710 5440.5511 1553.6530 5422.6530 1261.6103 7413.6406 4090.6406 4090.6406 1375.6406 5913.6406 1646.6610 1552.6406 LAUNDRY LAUNDRY 6/17/2014 12:38:21 Page - 13 Business Unit BUILDING MAINTENANCE BUILDING MAINTENANCE CENT SVC PW BUILDING EQUIPMENT OPERATION GEN GENERAL MAINTENANCE ARENA BLDG /GROUNDS DISTRIBUTION EQUIPMENT REPLACEMENT SOUTH ARENA MIST ELIMINATORS COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES REPAIR PARTS REPAIR PARTS EQUIPMENT OPERATION GEN MAINT OF COURSE & GROUNDS PROFESSIONAL SERVICES CONSTRUCTION MANAGEMENT GENERALSUPPLIES GENERALSUPPLIES GENERALSUPPLIES GENERALSUPPLIES GENERALSUPPLIES SAFETY EQUIPMENT GENERALSUPPLIES PSTF FIRE TOWER 50TH &FRANCE MAINTENANCE 50TH &FRANCE MAINTENANCE PARKING RAMP DISTRIBUTION BUILDING MAINTENANCE CENT SVC PW BUILDING 60.68 344829 053114 761.77 383792 611912014 100768 GARTNER REFRIGERATION & MFG INC 4,358.00 REPLACE MIST ELIMINATORS 344710 44883 4,358.00 383793 6/19/2014 101931 GEAR FOR SPORTS 262.81 MERCHANDISE 345158 40617221 262.81 383794 6/1912014 100920 GENUINE PARTS COMPANY- MINNEAPOLIS 161.85 PARTS 344788 053114 22.69 PARTS 344788 053114 184.54 383796 6/1912014 124471 GOODPOINTE TECHNOLOGY INC. 3,993.20 PAVEMENT CONDITION SURVEY 345115 1801 3,993.20 383796 6/19/2014 134210 GOPHER BEARING 99.66 BALL BEARINGS 344711 5893793 99.66 383797 6/1912014 101103 GRAINGER 370.56 WARNING TAPE 00005115 344712 9435072567 743.54 CIGARETTE RECEPTACLES 00005316 344713 9442045598 120.10 HOSE CLAMPS 00001165 344714 9445801716 48.02 TARP, FITTINGS 00005323 344715 9454998114 47.52 GLOVES 00001222 344716 9455454034 197.70 PAPER PLATES 00005324 344721 9456135251 5913.6201 450002.6710 5440.5511 1553.6530 5422.6530 1261.6103 7413.6406 4090.6406 4090.6406 1375.6406 5913.6406 1646.6610 1552.6406 LAUNDRY LAUNDRY 6/17/2014 12:38:21 Page - 13 Business Unit BUILDING MAINTENANCE BUILDING MAINTENANCE CENT SVC PW BUILDING EQUIPMENT OPERATION GEN GENERAL MAINTENANCE ARENA BLDG /GROUNDS DISTRIBUTION EQUIPMENT REPLACEMENT SOUTH ARENA MIST ELIMINATORS COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES REPAIR PARTS REPAIR PARTS EQUIPMENT OPERATION GEN MAINT OF COURSE & GROUNDS PROFESSIONAL SERVICES CONSTRUCTION MANAGEMENT GENERALSUPPLIES GENERALSUPPLIES GENERALSUPPLIES GENERALSUPPLIES GENERALSUPPLIES SAFETY EQUIPMENT GENERALSUPPLIES PSTF FIRE TOWER 50TH &FRANCE MAINTENANCE 50TH &FRANCE MAINTENANCE PARKING RAMP DISTRIBUTION BUILDING MAINTENANCE CENT SVC PW BUILDING R55CKR2 LOGIS101 134215 HANSEN, MAHSA CITY OF EDINA PLAYGROUND PROGRAM REFUND 344830 REFUND 1600.4390.29 HIGHLANDS EXPLORERS Council Check Register by GL Council Check Register by Invoice & Summary 102618 HARDWOOD CREEK LUMBER INC 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No 383797 6/1912014 01415.1705.31 101103 GRAINGER 279.89 LATHS & HUBS 345116 9609 01413.1705.31 200.20 QUICK COUPLER BODIES 00005305 344717 9456638387 1553.6530 MATERIALS /SUPPLIES 98.40 COUPLERS, PLUGS 00005305 344718 9456889501 1553.6530 383802 6/19/2014 582.00 GLOVES 00001143 344719 9457565837 5921.6406 CHLORINE 732.92 SAFETY RAILS 5311.6545 344722 9457951060 7413.6406 345039 121.44 SAFETY GLASSES 00001222 344961 9457959071 1646.6610 3605019 54.16 DISCONNECTS, GLOVES, BATTERIESOO1236 8,839.10 344720 9457959089 1330.6530 72.30 SAFETY GLASSES 344723 9458799302 7414.6406 565.65 PUMP FOR PLUNGE POOL 00002150 345036 9459140837 5311.6406 56.49 CAPACITOR 00001242 344962 9459140845 5934.6406 193.24 COUPLER BODIES 00005305 344789 9459140852 1553.6530 200.20- CREDIT 00005305 345037 9459832649 1553.6530 11.04 ANCHOR SCREENS 345035 9460122436 1551.6406 4,015.08 383798 6/1912014 102217 GRAPE BEGINNINGS INC 98.25 344866 167351 5862.5513 573.50 344868 167967 5822.5513 493.50 344867 167969 5862.5513 Subledger Account Description Continued... REPAIR PARTS REPAIR PARTS GENERALSUPPLIES GENERALSUPPLIES SAFETY EQUIPMENT REPAIR PARTS GENERALSUPPLIES GENERALSUPPLIES GENERALSUPPLIES REPAIR PARTS REPAIR PARTS GENERALSUPPLIES COST OF GOODS SOLD WINE COST OF GOODS SOLD WINE COST OF GOODS SOLD WINE 1,165.25 383799 6/19/2014 101964 GUSTAVE A. LARSON CO. 46.16 COMPRESSOR PARTS 00001166 344724 BLM0168328 7411.6530 REPAIR PARTS 46.16 383800 6/1912014 134215 HANSEN, MAHSA 133.00 PLAYGROUND PROGRAM REFUND 344830 REFUND 1600.4390.29 HIGHLANDS EXPLORERS 133.00 383801 6/19/2014 102618 HARDWOOD CREEK LUMBER INC 138.95 LATHS & HUBS 345116 9609 01414.1705.31 MATERIALS /SUPPLIES 140.94 LATHS & HUBS 345116 9609 01415.1705.31 MATERIALS /SUPPLIES 279.89 LATHS & HUBS 345116 9609 01413.1705.31 MATERIALS /SUPPLIES 559.78 LATHS & HUBS 345116 9609 01412.1705.31 MATERIALS /SUPPLIES 1,119.56 383802 6/19/2014 100797 HAWKINS INC. 724.55 CHLORINE 345040 3599788 5311.6545 CHEMICALS 5,935.82 CHEMICALS 00001246 345039 3605014 5915.6586 WATER TREATMENT SUPPLIES 2,178.73 CHEMICALS 00001246 345038 3605019 5915.6586 WATER TREATMENT SUPPLIES 8,839.10 6/17/2014 12:38:21 Page - 14 Business Unit EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN SANITARY LIFT STATION MAINT PSTF FIRE TOWER BUILDING MAINTENANCE TRAFFIC SIGNALS PUBLIC PROGRAMS POOL OPERATION STORM LIFT STATION MAINT EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN CITY HALL GENERAL VERNON SELLING 50TH ST SELLING VERNON SELLING PSTF OCCUPANCY PARK ADMIN. GENERAL HOLLANDS NHOOD RECON HYDE PARK NHOOD RECON EDINA HIGHLANDS LAKESIDE RECON GLEN VIEWADDITION NHOOD RECON POOL OPERATION WATER TREATMENT WATER TREATMENT R55CKR2 LOGIS101 6/19/2014 COST OF GOODS SOLD BEER 116680 HEWLETT - PACKARD COMPANY CITY OF EDINA VERNON SELLING COST OF GOODS SOLD BEER 50TH ST SELLING COST OF GOODS SOLD BEER 4,388.09 REPLACEMENT PCS 00004324 Council Check Register by GL 54400717 1554.6710 4,388.09 Council Check Register by Invoice & Summary 383807 6/19/2014 103763 HILLYARD INC -MINNEAPOLIS 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383802 6/1912014 100797 HAWKINS INC. Continued... 383803 6/19/2014 6/1912014 116838 HAYES INSTRUMENT CO INC 101271 HINDING, CHRIS 187.79 SURVEY SUPPLIES 00002613 345117 672508 1261.6406 GENERAL SUPPLIES 5760.6136 187.79 150.00 383804 6/19/2014 6/19/2014 100012 HD SUPPLY WATERWORKS LTD 134345 HOFIUS, CLAIRE 79.76 GV TOP SECTION 00001206 344725 C470554 5913.6406 GENERAL SUPPLIES 1263.6406 545.22 CS PARTS 00001151 344963 C491174 5913.6406 GENERAL SUPPLIES 383810 624.98 104375 HOHENSTEINS INC. 383805 6/19/2014 101209 HEIMARK FOODS 344616 705423 5822.5514 177.12 MEAT PATTIES 344999 025184 5421.5510 COST OF GOODS SOLD 5862.5514 177.12 56.00 345000 025195 5421.5510 COST OF GOODS SOLD 383806 6/19/2014 COST OF GOODS SOLD BEER 116680 HEWLETT - PACKARD COMPANY COST OF GOODS SOLD MIX VERNON SELLING COST OF GOODS SOLD BEER 50TH ST SELLING COST OF GOODS SOLD BEER 4,388.09 REPLACEMENT PCS 00004324 344964 54400717 1554.6710 4,388.09 383807 6/19/2014 103763 HILLYARD INC -MINNEAPOLIS 233.22 SOAP, SANITIZER 00002174 345041 601172188 5720.6406 233.22 383808 6/1912014 101271 HINDING, CHRIS 150.00 CL PERFORMANCE 6/26/14 344942 060114 5760.6136 150.00 383809 6/19/2014 134345 HOFIUS, CLAIRE 19.97 STEEL TOE BOOTS 345159 REIMBURSE 1263.6406 19.97 383810 6/19/2014 104375 HOHENSTEINS INC. 434.00 344616 705423 5822.5514 529.00 344871 706605 5862.5514 56.00 344869 706606 5862.5515 490.00 344870 706610 5622.5514 947.75 344872 706987 5842.5514 2,456.75 383811 6119/2014 102044 HOISINGTON KOEGLER GROUP INC. 6/17/2014 12:38:21 Page- 15 Business Unit CONSTRUCTION MANAGEMENT DISTRIBUTION DISTRIBUTION GRILL GRILL EQUIPMENT REPLACEMENT CENT SERV GEN - MIS GENERAL SUPPLIES EDINBOROUGH OPERATIONS PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE GENERALSUPPLIES ENVIRONMENT COST OF GOODS SOLD BEER 50TH ST SELLING COST OF GOODS SOLD BEER VERNON SELLING COST OF GOODS SOLD MIX VERNON SELLING COST OF GOODS SOLD BEER 50TH ST SELLING COST OF GOODS SOLD BEER YORK SELLING R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383811 611912014 102044 HOISINGTON KOEGLER GROUP INC. Continued... 716.96 CONSTRUCTION ADMIN 344831 012- 042 -17 47078.6710 EQUIPMENT REPLACEMENT 716.96 383812 6/19/2014 126816 HOME DEPOT CREDIT SERVICES 21.50 PW / ENG SUPPLIES 344726 051314 1318.6406 GENERAL SUPPLIES 77.39 PW/ ENG SUPPLIES 344726 051314 1314.6406 GENERAL SUPPLIES 149.50 PW /ENG SUPPLIES 344726 051314 1261.6406 GENERALSUPPLIES 214.48 PW / ENG SUPPLIES 344726 051314 5932.6556 TOOLS 462.87 383813 6/1912014 103302 HONEYWELL CONCERT BAND 150.00 CL PERFORMANCE 6/29/14 344946 060114 5760.6136 PROFESSIONAL SVC - OTHER 150.00 383814 6/19/2014 134221 HONG, NGHY 45.00 SKATING LESSONS REFUND 344832 061014 5501.4607 CLASS REGISTRATION 45.00 383815 6119/2014 100417 HORIZON COMMERCIAL POOL SUPPLY 49.77 ALGAECIDE 00002169 345042 140520054 5720.6545 CHEMICALS 3,850.00 ZERO DEPTH POOL PAINTING 345043 J14050712 5311.6532 PAINT 3,899.77 383816 6/19/2014 100808 HORWATH, THOMAS 430.08 MILEAGE REIMBURSEMENT 344965 061214 1644.6107 MILEAGE OR ALLOWANCE 430.08 383817 6/19/2014 131544 INDEED BREWING COMPANY 345.00 345207 20241 5862.5514 COST OF GOODS SOLD BEER 360.00 344873 20285 5842.5514 COST OF GOODS SOLD BEER 705.00 383818 6/19/2014 104696 INT'L SECURITY PRODUCTS 54.00 FENCING TIES 00001279 345044 3042591 1642.6406 GENERAL SUPPLIES 54.00 383819 6/19/2014 126031 J.S. PALUCH COMPANY INC. 36.20 BRAEMAR GOLF COURSE AD 345045 1225394 -5/14 5410.6122 ADVERTISING OTHER 36.20 6/17/2014 12:38:21 Page - 16 Business Unit COUNTRYSIDE PK PLAYGROUND &PATE SNOW & ICE REMOVAL STREET RENOVATION CONSTRUCTION MANAGEMENT GENERAL STORM SEWER CENTENNIAL LAKES ADMIN EXPENSE ICE ARENA REVENUES EDINBOROUGH OPERATIONS POOL OPERATION TREES & MAINTENANCE VERNON SELLING YORK SELLING FIELD MAINTENANCE GOLF ADMINISTRATION R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 -- 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383820 6/1912014 100202 JAMAR TECHNOLOGIES INC. Continued... 55.11 MASTIC TAPE 345118 20399 1262.6406 GENERAL SUPPLIES 55.11 383821 6/1912014 102157 JEFF ELLIS & ASSOCIATES INC. 4,457.00 LIFEGUARD LICENSES 345046 20067976 5310.6104 CONFERENCES & SCHOOLS 875.00 SAFETYAUDIT 345047 20068014 5310.6103 PROFESSIONAL SERVICES 5,332.00 383822 6/19/2014 100830 JERRY'S PRINTING 171.64 HOTEL PASSES 345048 65053 5710.6575 PRINTING 171.64 6/17/2014 12:38:21 Page - 17 Business Unit TRANSPORTATION POOL ADMINISTRATION POOL ADMINISTRATION EDINBOROUGH ADMINISTRATION 383823 6/19/2014 100741 JJ TAYLOR DIST. OF MINN 3,607.73 344874 2225441 5822.5514 COST OF GOODS SOLD BEER 50TH ST SELLING 4,354.90 344875 2225470 5862.5514 COST OF GOODS SOLD BEER VERNON SELLING 35.00 344876 2225471 5862.5515 COST OF GOODS SOLD MIX VERNON SELLING 58.05 344877 2225473 5822.5515 COST OF GOODS SOLD MIX 50TH ST SELLING 123.71- 345209 2225479 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 10,672.95 345208 2225480 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 56.35 345210 2225481 5842.5515 COST OF GOODS SOLD MIX YORK SELLING 709.50 345049 2229192 5421.5514 COST OF GOODS SOLD BEER GRILL 19,370.77 383824 6/1912014 124104 JOHN DEERE LANDSCAPES INC. 42.73 IRRIGATION REPAIR PARTS 00001204 344790 68314641 1642.6406 GENERAL SUPPLIES FIELD MAINTENANCE 35.95 COUPLERS, ADAPTERS 00006159 345050 68331101 5422.6611 IRRIGATION EQUIPMENT MAINT OF COURSE & GROUNDS 223.97 WEED KILLERS 00005322 344791 68362082 4091.6406 GENERAL SUPPLIES GRANDVIEW MAINTENANCE 537.39 GARLON 00006252 345051 68387492 5422.6545 CHEMICALS MAINT OF COURSE & GROUNDS 80.87 BACKPACK SPRAYER 00005329 344792 68488088 4091.6406 GENERAL SUPPLIES GRANDVIEW MAINTENANCE 920.91 383826 6/19/2014 100835 JOHNSON BROTHERS LIQUOR CO. 1,103.71 344623 1867310 5822.5513 COST OF GOODS SOLD WINE 50TH ST SELLING 1,690.39 344622 1867311 5822.5513 COST OF GOODS SOLD WINE 50TH ST SELLING 169.96 344617 1867314 5822.5512 COST OF GOODS SOLD LIQUOR 50TH ST SELLING 1,135.82 344624 1867319 5822.5513 COST OF GOODS SOLD WINE 50TH ST SELLING 726.82 344618 1867320 5822.5512 COST OF GOODS SOLD LIQUOR 50TH ST SELLING 31.37 344619 1867321 5822.5515 COST OF GOODS SOLD MIX 50TH ST SELLING 2,565.81 344620 1867322 5822.5512 COST OF GOODS SOLD LIQUOR 50TH ST SELLING .65 344621 1867325 5822.5512 COST OF GOODS SOLD LIQUOR 50TH ST SELLING R55CKR2 LOGIS101 CITY OF EDINA 6/17/2014 12:38:21 Council Check Register by GL Page- 18 Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383826 6/19/2014 100836 JOHNSON BROTHERS LIQUOR CO. Continued... 49.50 344625 1867770 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 120.00 344626 1867771 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 2,673.91 345216 1872880 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 1,624.34 345217 1872884 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 293.58 344886 1872885 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 777.42 345221 1872886 5822.5512 COST OF GOODS SOLD LIQUOR 50TH ST SELLING 3,583.78 344884 1872888 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 886.23 344883 1872889 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 84.98 345222 1872891 5822.5512 COST OF GOODS SOLD LIQUOR 50TH ST SELLING 1,352.11 345212 1872892 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 2.05 344878 1872894 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 507.97 345223 1872895 5822.5512 COST OF GOODS SOLD LIQUOR 50TH ST SELLING 2.24 345219 1872899 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 2,421.11 345218 1872903 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 1,412.20 345211 1872904 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 4,851.31 345213 1672906 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 143.12 345215 1872907 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 3,499.42 345214 1872908 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 2.24 345220 1872909 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 3,940.77 344885 1872910 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 1,503.55 344881 1872911 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 1,066.20 344879 1872912 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 1,173.61 344882 1872913 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 3,370.70 344880 1872914 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 55.12- 344889 619901 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 10.00- 344628 620496 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 13.33- 344627 620497 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 6.90- 344629 620498 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 17.92- 344888 620500 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 67.12- 344887 620501 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 42,596.48 383827 6/1912014 134211 JOHNSON, LISKA 95.00 PLAYGROUND PROGRAM REFUND 344833 REFUND 1600.4390.29 HIGHLANDS EXPLORERS PARKADMIN. GENERAL 95.00 383828 6/19/2014 102113 JOHNSTONE SUPPLY 51.70 FILTERS 00001255 344727 055932 5913.6406 GENERALSUPPLIES DISTRIBUTION 51.70 R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 — 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383829 611912014 102603 JONAS, LENORE Continued... 67.16 SUPPLIES REIMBURSEMENT 345160 061314 5110.6406 GENERALSUPPLIES 67.16 383830 6/19/2014 118336 JONES AND BARTLETT LEARNING LLC 2,181.93 LIFEGUARD TRAINING BOOKS 345052 3001048 5310.6104 CONFERENCES & SCHOOLS 2,181.93 383831 6/19/2014 131616 KARKHOFF, NANCY 344.75 PETTY CASH 344966 061214 1400.6103 PROFESSIONAL SERVICES 358.07. PETTY CASH 344966 061214 1400.6106 MEETING EXPENSE 702.82 383832 6119/2014 102824 KAY PARK -REC CORP. 9,150.00 PADDLEBOATS 00002007 344967 00165986 5761.6406 GENERALSUPPLIES 9,150.00 383833 6/1912014 106990 KELLY GREEN IRRIGATION INC. 103.93 SPRINKLER REPAIR -6501 RYAN 345119 91469 01394.1705.21 CONSULTING INSPECTION 103.93 383834 6/19/2014 113212 KENDELL DOORS & HARDWARE INC. 8.68 KEYS 345053 S1010034 5311.6406 GENERALSUPPLIES 8.68 383835 6/19/2014 134342 KRAYNICK, STEPHANIE 83.00 ART CLASS REFUND 345161 REFUND 5101.4607 CLASS REGISTRATION 83.00 383836 6/19/2014 118660 LAKES AREA HOME IMPROVEMENT SERVICES 167.00 WATER SOFTENER REPAIR 345120 1598 05541.1705.21 CONSULTING INSPECTION 167.00 WATER SOFTENER REPAIR 345121 1599 05541.1705.21 CONSULTING INSPECTION 334.00 383837 6/19/2014 122700 LARSON, DAN 150.00 CL PERFORMANCE 6 130/14 344947 060114 5760.6136 PROFESSIONAL SVC - OTHER 150.00 383838 6/19/2014 100862 LAWSON PRODUCTS INC. 264.63 SCREWS, CAPS 00001040 344728 9302425218 1325.6406 GENERALSUPPLIES 432.03 BULBS, SCREWS, BITS 00005400 345054 .9302506260 1553.6530 REPAIR PARTS 6/17/2014 12:38:21 Page- 19 Business Unit ART CENTER ADMINISTRATION POOL ADMINISTRATION POLICE DEPT. GENERAL POLICE DEPT. GENERAL CENTENNIAL LAKES OPERATING NORMANDALE POOL OPERATION ART CENTER REVENUES EDINATERRACE NHOOD RECON EDINATERRACE NHOOD RECON CENTENNIAL LAKES ADMIN EXPENSE STREET NAME SIGNS EQUIPMENT OPERATION GEN R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383838 6/19/2014 100852 LAWSON PRODUCTS INC. Continued... 696.66 383839 6/19/2014 131841 LEA, DOROTHY 97.00 ART CENTER CLASS REFUND 344968 061014 5101.4607 CLASS REGISTRATION 97.00 383840 6/19/2014 100558 LIND ELECTRONIC DESIGN CO INC. 139.95 POWER ADAPTER FOR MOTORCYCLE 344969 293783 1400.6160 DATA PROCESSING 139.95 383841 6/19/2014 134222 LIND, STUART 80.00 CURB CUT PERMIT 344834 REIMBURSE 1260.4344 CURB CUT FEE 80.00 383842 6/19/2014 100858 LOGIS 5,969.53 SERVER - VOICEMAIL 344729 36619 1554.6710 EQUIPMENT REPLACEMENT 346.50 IT CONSULTING 345055 38629 1554.6103 PROFESSIONAL SERVICES 445.50 WIFI CONSULTING 345055 36629 4413.6103 PROFESSIONAL SERVICES 6,761.53 383843 6119/2014 134338 LYCHE, CHRISTOPHER 89.00 JR LEAGUE CANCELLATION 345162 REFUND 5401.4592 GREEN FEES NINE HOLES 89.00 383844 6119/2014 112577 M. AMUNDSON LLP 993.38 344890 174809 5822.5515 COST OF GOODS SOLD MIX 1,015.92 344630 175439 5862.5515 COST OF GOODS SOLD MIX 2,009.30 383845 6/19/2014 100864 MACQUEEN EQUIPMENT INC. 77.93 HOSE 00005373 344730 2144101 1553.6530 REPAIR PARTS 457.32 BRAKE PAD KITS 00005375 344732 2144158 1553.6530 REPAIR PARTS 977.46 CALIPER STATOR KIT SHOE 00005375 344731 2144196 1553.6530 REPAIR PARTS 16.49 HUBCAP 00005381 344793 2144269 1553.6530 REPAIR PARTS 57.24 ROLLER BEARING CONES /CUPS 00005382 344970 2144307 1553.6530 REPAIR PARTS 457.32- RETURN 344733 9489 1553.6530 REPAIR PARTS 1,129.12 383846 6119/2014 102414 MAINTENANCE ENGINEERING LTD 225.69 PARTS 344734 2959755 -01 1552.6406 GENERALSUPPLIES 6/17/2014 12:38:21 Page - 20 Business Unit ART CENTER REVENUES POLICE DEPT. GENERAL ENGINEERING GENERAL CENT SERV GEN - MIS CENT SERV GEN - MIS CITY WIFI PROJECT GOLF REVENUES 50TH ST SELLING VERNON SELLING EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN CENT SVC P! -` DING R55CKR2 LOGIS101 CITY OF EDINA 6/17/2014 12:38:21 Council Check Register by GL Page - 21 Council Check Register by Invoice & Summary 6/19/2014 — 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383846 6/19/2014 102414 MAINTENANCE ENGINEERING LTD Continued... 225.69 383847 6119/2014 134063 MANSFIELD OIL COMPANY 6,262.62 UNLEADED GAS 344795 646808 1553.6581 GASOLINE EQUIPMENT OPERATION GEN 12,371.08 DIESEL FUEL 344794 646810 1553.6561 GASOLINE EQUIPMENT OPERATION GEN 854.93 GAS 345057 648417 5423.6406 GENERALSUPPLIES GOLF CARS 1,122.08 GAS 345056 648419 5422.6581 GASOLINE MAINT OF COURSE & GROUNDS 1,328.03 DIESEL 345058 648429 5422.6581 GASOLINE MAINT OF COURSE & GROUNDS 21,938.74 383848 6/19/2014 130484 MARK'S CONCESSION REPAIR LLC 123.07 CLEANED POPCORN MACHINE 345122 1276 5520,6180 CONTRACTED REPAIRS ARENA CONCESSIONS 123.07 383849 6/19/2014 100869 MARTIN - MCALLISTER 900.00 PUBLIC SAFETY ASSESSMENT 344656 9086 1400.6103 PROFESSIONAL SERVICES POLICE DEPT. GENERAL 3,600.00 PUBLIC SAFETY ASSESSMENT 344657 9144 1400.6103 PROFESSIONAL SERVICES POLICE DEPT. GENERAL 1,800.00 PERSONNEL EVALUATIONS 344658 9145 1556.6121 ADVERTISING PERSONNEL EMPLOYEE SHARED SERVICES 6,300.00 383850 6/1912014 102560 MAXIMUM SOLUTIONS INC. 1,125.00 SOFTWARE ANNUAL SER AGREEMENT 344796 15611 5510.6136 PROFESSIONALSVC - OTHER ARENA ADMINISTRATION 1,125.00 383851 6/1912014 134336 MCNAMARA CONTRACTING INC. 5,320.00 PARTIAL PAYMENT NO. 1 345101 062714 07121.1705.30 CONTRACTOR PAYMENTS S121 STRACHAUERPARK B SIDEWALK 156,647.82 PARTIAL PAYMENT NO. 1 345101 062714 01411.1705.30 CONTRACTOR PAYMENTS EDINATERRACE NHOOD RECON 70,287.45 PARTIAL PAYMENT NO. 1 345101 062714 05541.1705.30 CONTRACTOR PAYMENTS EDINATERRACE NHOOD RECON 301,140.22 PARTIAL PAYMENT NO. 1 345101 062714 03483.1705.30 CONTRACTOR PAYMENTS EDINA TERRACE NHOOD RECON 64,246.22 PARTIAL PAYMENT NO. 1 345101 062714 04399.1705.30 CONTRACTOR PAYMENTS EDINATERRACE NHOOD RECON 597,641.71 383852 6/19/2014 101483 MENARDS 53.81 GATE HARDWARE 00001064 344735 55868 1552.6406 GENERALSUPPLIES CENT SVC PW BUILDING 13.97 GRASS (SEED) REPAIR JUG 00001068 344736 56377 1318.6406 GENERALSUPPLIES SNOW & ICE REMOVAL 112.32 SIDING, NAILS 00001103 344737 56846 5420.6406 GENERALSUPPLIES CLUB HOUSE 34.97 STEEL FOR MAILBOX 00001118 344799 56676 1318.6406 GENERALSUPPLIES SNOW & ICE REMOVAL 97.64 RATCHET, COOLFLOW VALVE 00008084 344797 57161 5511.6406 GENERALSUPPLIES ARENA BLDG /GROUNDS 41.49 PUTTY, SPAKLING KNIFE 00001199 344738 57673 5420.6406 GENERALSUPPLIES CLUB HOUSE 49.49 STUDS, EARPLUGS 00001205 344739 57760 1314.6406 GENERALSUPPLIES STREET RENOVATION R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 — 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383862 6/1912014 101483 MENARDS Continued... 47.57 FLASHLIGHTS,YORKSTONE 00008086 344798 57848 5511.6406 GENERALSUPPLIES 52.95 CEDAR SIDING PICKET 00001223 344740 58104 5420.6406 GENERALSUPPLIES 404.73 FENCE MATERIAL 00001228 344741 58172 1344.6406 GENERALSUPPLIES 3.97 HAMMER HANDLE 00001263 344742 58458 1552.6406 GENERAL SUPPLIES 912.91 383853 6119/2014 101987 MENARDS 46.88 DUST MASKS, BLEACH, DUCT TAPE06002173 345059 42769 5720.6406 GENERALSUPPLIES 23.70 MURIATICACID 00002150 345060 43542 5311.6545 CHEMICALS 130.89 TOOL SET, LATTICE 00002150 345061 43573 5311.6406 GENERALSUPPLIES 201.47 383854 6119/2014 100885 METRO SALES INC 3,073.00 RICOH -ART CENTER 344743 36114A 1554.6710 EQUIPMENT REPLACEMENT 3,073.00 383855 6/19/2014 134038 MIDWEST CIVIL CONSTRUCTORS INC. 185,134.20 PARTIAL PAYMENT NO. 2 345123 061314 01417.1705.30 CONTRACTOR PAYMENTS 185,134.20 383856 6/1912014 102007 MINNCOR INDUSTRIES 50.00 HAND SOAP 344744 SOI- 025410 1552.6406 GENERALSUPPLIES 100.00 HAND SOAP 00001209 344745 SOI- 025433 1552.6406 GENERAL SUPPLIES 150.00 383857 6119/2014 100913 MINNEAPOLIS & SUBURBAN SEWER & WATER 4,950.00 SEWER REPAIR 00002609 345124 34707 03480.1705.21 CONSULTING INSPECTION 1,786.75 REPLACE SERVICE LINE 00001145 344748 34710 5913.6180 CONTRACTED REPAIRS 3,150.00 SEWER REPAIR 00002593 345125 34711 03479.1705.21 CONSULTING INSPECTION 7,750.00 SEWER REPAIR 00002594 345127 34712 03479.1705.21 CONSULTING INSPECTION 4,940.00 SEWER REPAIR 00002607 345126 34716 03479.1705.21 CONSULTING INSPECTION 22,578.75 383858 6/19/2014 102174 MINNEAPOLIS OXYGEN COMPANY 44.39 CO2, METHAIR 344749 171099592 7413.6545 CHEMICALS 44.39 383859 6119/2014 101638 MINNESOTA DEPARTMENT OF HEALTH 35.00 HOSPITALITY FEE - #50011 344800 560580 5511.6103 PROFESSIONAL SERVICES 35.00 6/17/2014 12:38:21 Page - 22 Business Unit ARENA BLDG /GROUNDS CLUB HOUSE RETAINING WALL MAINTENANCE CENT SVC PW BUILDING EDINBOROUGH OPERATIONS POOL OPERATION POOL OPERATION CENT SERV GEN - MIS HAZELTON RD IMPROVEMENTS CENT SVC PW BUILDING CENT SVC PW BUILDING HAWKES NHOOD RECON DISTRIBUTION MORNINGSIDE NHOOD RECON MORNINGSIDE NHOOD RECON MORNINGSIDE NHOOD RECON PSTF FIRE TOWER ARENA BLDG /GROUNDS R55CKR2 LOGIS101 1,635.12 CITY OF EDINA 383865 Council Check Register by GL 101658 MPELRA Council Check Register by Invoice & Summary 235.00 REGISTRAION -JESSICA NIKUNEN 345164 6/19/2014 — 6/19/2014 1170.6104 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383859 6/1912014 CONFERENCES & SCHOOLS 101638 MINNESOTA DEPARTMENT OF HEALTH Continued... 383860 6119/2014 101537 MINNESOTA POLLUTION CONTROL AGENCY 383866 6/19/2014 23.00 RENEWAL- DAVID GOERGEN 344971 LICENSE 5919.6260 LICENSES & PERMITS 23.00 190.00 PROGRAM CANCELLATION 344835 383861 6119/2014 HIGHLANDS EXPLORERS 118144 MINNESOTA PREMIER PUBLICATIONS 190.00 400.00 P -23 IMPROVEMENT AD 345163 151694 44012.1705.20 CONSULTING DESIGN 6/19/2014 400.00 INC. 383862 6/19/2014 100908 MINNESOTA WANNER CO. AMBULANCE OVERPAYMENT REFUND 344836 BEVERLY PASHINA 1470.4329 39.60 WATERING JUGS 00001178 344746 0104662 -IN 1644.6541 PLANTINGS & TREES 198.23 PUMP 00005378 344747 0105039 -IN 1553.6530 REPAIR PARTS 6/19/2014 237.83 383863 6/19/2014 100898 MINVALCO TABLE COVERS 345062 285781 5720.5510 147.24 VALVE, SEALS 00001275 344972 948806 5913.6406 GENERAL SUPPLIES 147.24 383869 383864 6/1912014 163512 100912 MOTOROLA INC. SERVICEA 6/17/2014 12:38:21 Page - 23 Business Unit TRAINING P23 50TH &FR PARKING &WAYFINDING TREES & MAINTENANCE EQUIPMENT OPERATION GEN DISTRIBUTION GREEMENT 344659 78268136 2310.6230 SERVICE CONTRACTS EQUIPMENT E911 HUMAN RESOURCES HUMAN RESOURCES PARKADMIN. GENERAL FIRE DEPT. GENERAL EDINBOROUGH OPERATIONS 1,635.12 383865 6/1912014 101658 MPELRA 235.00 REGISTRAION -JESSICA NIKUNEN 345164 CONFERENCE 1170.6104 CONFERENCES & SCHOOLS 235.00 REGISTRAION - LISA SCHAEFER 345164 CONFERENCE 1170.6104 CONFERENCES & SCHOOLS 470.00 383866 6/19/2014 134212 NASCENE, SHANNON 190.00 PROGRAM CANCELLATION 344835 REFUND 1600.4390.29 HIGHLANDS EXPLORERS 190.00 383867 6/19/2014 133207 NATIONAL GOVERNMENT SERVICES INC. 355.55 AMBULANCE OVERPAYMENT REFUND 344836 BEVERLY PASHINA 1470.4329 AMBULANCE FEES 355.55 383868 6/19/2014 106662 NET LITIN DISTRIBUTORS 613.84 TABLE COVERS 345062 285781 5720.5510 COST OF GOODS SOLD 613.84 383869 6/19/2014 100076 NEW FRANCE WINE CO. HUMAN RESOURCES HUMAN RESOURCES PARKADMIN. GENERAL FIRE DEPT. GENERAL EDINBOROUGH OPERATIONS R55CKR2 LOGIS101 CITY OF EDINA 6/17/2014 12:38:21 Council Check Register by GL Page- 24 Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383869 6/19/2014 100076 NEW FRANCE WINE CO. Continued... 139.51 344891 91069 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 139.51 383870 611912014 100922 NEWMAN TRAFFIC SIGNS 1,298.30 SIGN SHEETING, TRANSFER TAPE 00001944 344660 TI- 0273268 1325.6531 SIGNS & POSTS STREET NAME SIGNS 2,084.21 SIGN SHEETING, TRANSFER TAPE 00001944 344660 TI- 0273268 1375.6406 GENERAL SUPPLIES PARKING RAMP 3,382.51 383871 6/19/2014 104350 NIKE USA INC. 31.12- CREDIT 345064 14258082 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 94.60 MERCHANDISE 345063 960886319 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 63.48 383872 6/19/2014 102199 NORTHERN SAFETY CO. INC. 421.25 SAFETY EYEWEAR, EARPLUGS 00003810 344802 900913823 1470.6510 FIRSTAID SUPPLIES FIRE DEPT. GENERAL 117.16 SAFETY EYEWEAR 00003810 344801 900913824 1470.6510 FIRSTAID SUPPLIES FIRE DEPT. GENERAL 538.41 383873 6/19/2014 104232 NORTHERN SAFETY TECHNOLOGY INC 523.23 MOUNTED LIGHTS 00005377 344750 36322 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 523.23 383874 6/1912014 102662 NORTHLAND CHEMICAL CORP. 350.00 HAND SOAP 00001210 344752 5054412 1646.6406 GENERAL SUPPLIES BUILDING MAINTENANCE 400.00 HAND SOAP 00001212 344751 5054413 1646.6406 GENERAL SUPPLIES BUILDING MAINTENANCE 750.00 383875 6/1912014 103578 OFFICE DEPOT 271.34 OFFICE SUPPLIES 344804 695362404001 5510.6406 GENERAL SUPPLIES ARENA ADMINISTRATION 6.73 BUSINESS CARD HOLDERS 344803 695362433001 5510.6406 GENERAL SUPPLIES ARENAADMINISTRATION 278.07 383876 6/1912014 100936 OLSEN COMPANIES 109.80 ZIP LINE ROPE 00001037 345065 537373 5311.6406 GENERAL SUPPLIES POOL OPERATION 109.80 383877 6/1912014 102265 OLSEN, TIM 288.94 UNIFORM PURCHASE 345165 061614 1400.6203 UNIFORM ALLOWANCE POLICE DEPT. GENERAL 288.94 R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 — 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383878 6/19/2014 115669 ON CALL SERVICES Continued... 654.20 PLAY STRUCTURE MAINTENANCE 345066 2439 5720.6530 REPAIR PARTS 654.20 383879 6/19/2014 101659 ORKIN COMMERCIAL SERVICES 142.22 PEST CONTROL 345067 93434253 1551.6103 PROFESSIONAL SERVICES 142.22 383880 6/19/2014 124519 OVERHOLT, JAMES 384.72 MILEAGE REIMBURSEMENT 344973 061214 1644.6107 MILEAGE OR ALLOWANCE 384.72 383881 6119/2014 121026 PALDA & SONS INC. 11,949.93 PARTIAL PAYMENT NO. 1 345102 062714 01408.1705.30 CONTRACTOR PAYMENTS 19,771.20 PARTIAL PAYMENT NO. 1 345102 062714 01407.1705.30 CONTRACTOR PAYMENTS 53,093.05 PARTIAL PAYMENT NO. 1 345102 062714 01409.1705.30 CONTRACTOR PAYMENTS 30,178.04 PARTIAL PAYMENT NO. 1 345102 062714 03480.1705.30 CONTRACTOR PAYMENTS 126,973.30 PARTIAL PAYMENT NO. 1 345102 062714 05538.1705.30 CONTRACTOR PAYMENTS 150,257.73 PARTIAL PAYMENT NO. 1 345102 062714 04396.1705.30 CONTRACTOR PAYMENTS 392,223.25 383882 6/19/2014 128863 PALLET SERVICE CORPORATION 297.50 RECYCLED BLOCKS 00001132 344754 93320 5939.6406 GENERALSUPPLIES 297.50 383883 6/19/2014 129486 PAPCO INC. 105.26 CAN LINERS, DUST MOPS 344753 85589 7411.6511 CLEANING SUPPLIES 105.26 383884 6/1912014 116603 PARKER, KATHLEEN 68.25 ART WORK SOLD 344974 060514 5101.4413 ART WORK SOLD 68.25 383885 6/19/2014 102440 PASS, GRACE 144.30 ART WORK SOLD 344975 060514 5101.4413 ART WORK SOLD 144.30 383886 6/19/2014 100347 PAUSTIS WINE COMPANY 3,458.25 344631 8451033 -IN 5822.5513 COST OF GOODS SOLD WINE 1,297.57 344632 8451330 -IN 5822.5513 COST OF GOODS SOLD WINE 401.25- 344896 8451616 -CM 5862.5513 COST OF GOODS SOLD WINE 6/17/2014 12:38:21 Page - 25 Business Unit EDINBOROUGH OPERATIONS CITY HALL GENERAL TREES & MAINTENANCE WARDEN AVE HAWKES NHOOD RECON WALNUT RIDGE NHOOD RECON HAWKES NHOOD RECON HAWKES NHOOD RECON HAWKES NHOOD RECON STORM SEWER SPECIAL PROJECTS PSTF OCCUPANCY ART CENTER REVENUES ART CENTER REVENUES 50TH ST SELLING 50TH ST SELLING VERNON SELLING R55CKR2 LOGIS101 134341 PETERSON, PATTY CITY OF EDINA 500.00 MUSIC IN EDINA 345166 Council Check Register by GL 2611.6103 500.00 Council Check Register by Invoice & Summary 383890 6/19/2014 134341 PETERSON, PATTY 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383886 6119/2014 100347 PAUSTIS WINE COMPANY Continued... 383891 6/1912014 403.75 PHILLIPS WINE & SPIRITS 344892 8451732 -IN 5862.5513 COST OF GOODS SOLD WINE 356.48 752.50 345224 8452215 -IN 5842.5513 COST OF GOODS SOLD WINE 894.38 2,102.52 344894 8452235 -IN 5842.5513 COST OF GOODS SOLD WINE 353.20 2,339.31 344895 8452241 -IN 5822.5513 COST OF GOODS SOLD WINE 292.96 6,956.36 344893 8452262 -IN 5862.5513 COST OF GOODS SOLD WINE 322.00 16,909.01 344640 2615656 5842.5512 383887 6/1912014 119008 PCI ROADS LLC 344639 2615657 5842.5513 109.12 14,148.83 PARTIAL PAYMENT NO. 1 345103 062714 10099.1705.30 CONTRACTOR PAYMENTS 162.87 91,852.65 PARTIAL PAYMENT NO. 1 345103 062714 10098.1705.30 CONTRACTOR PAYMENTS 1,722.75 106,001.48 345230 2619034 5842.5513 363888 6119/2014 100945 PEPSI -COLA COMPANY 345227 2619035 5842.5515 1,472.96 59.67 345068 00402123 5430.5510 COST OF GOODS SOLD 276.90 1,062.90 345069 00402125 5320.5510 COST OF GOODS SOLD 1,453.31 186.52 345128 00402170 5520.5510 COST OF GOODS SOLD 383889 6/19/2014 134341 PETERSON, PATTY 500.00 MUSIC IN EDINA 345166 061114 2611.6103 500.00 383890 6/19/2014 134341 PETERSON, PATTY 500.00 MUSIC IN EDINA 345167 061214 2611.6103 500.00 383891 6/1912014 100743 PHILLIPS WINE & SPIRITS 356.48 .344901 2600646 5822.5513 894.38 344634 2615303 5822.5513 353.20 344633 2615305 5822.5512 292.96 344635 2615306 5822.5513 322.00 344640 2615656 5842.5512 44.00 344639 2615657 5842.5513 109.12 345228 2619030 5842.5513 162.87 345225 2619031 5822.5512 1,722.75 345230 2619034 5842.5513 57.12 345227 2619035 5842.5515 1,472.96 345226 2619036 5842.5512 276.90 345229 2619037 5842.5513 1,453.31 344899 2619038 5862.5513 6/17/2014 12:38:21 Page - 26 Business Unit VERNON SELLING YORK SELLING YORK SELLING 50TH ST SELLING VERNON SELLING BR9 GUS YOUNG BRIDGE REHAB BR8 78TH STREET BRIDGE REHAB RICHARDS GOLF COURSE POOL CONCESSIONS ARENA CONCESSIONS PROFESSIONAL SERVICES MUSIC IN EDINA PROFESSIONAL SERVICES MUSIC IN EDINA COST OF GOODS SOLD WINE COST OF GOODS SOLD WINE COST OF GOODS SOLD LIQUOR COST OF GOODS SOLD WINE COST OF GOODS SOLD LIQUOR COST OF GOODS SOLD WINE COST OF GOODS SOLD WINE COST OF GOODS SOLD LIQUOR COST OF GOODS SOLD WINE COST OF GOODS SOLD MIX COST OF GOODS SOLD LIQUOR COST OF GOODS SOLD WINE COST OF GOODS SOLD WINE 50TH ST SELLING 50TH ST SELLING 50TH ST SELLING 50TH ST SELLING YORK SELLING YORK SELLING YORK SELLING 50TH ST SELLING YORK SELLING YORK SELLING YORK SELLING YORK SELLING VERNON SE R55CKR2 LOGIS101 CITY OF EDINA 6/17/2014 12:38:21 Council Check Register by GL Page- 27 Council Check Register by Invoice & Summary 6/19/2014 -- 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383891 6/1912014 100743 PHILLIPS WINE & SPIRITS Continued... 194.24 344898 2619039 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 373.10 344900 2619040 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 743.68 344897 2619041 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 12.41- 344638 3527935 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 5.33- 344637 3527936 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 5.33- 344636 3527937 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 8,806.00 383892 6/1912014 100119 PING 69.86 GOLF BAG 345168 12320258 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 69.86 383893 6/19/2014 130174 PIONEER MANUFACTURING COMPANY 79.00 PAINT WANDS 00001257 345071 INV517429 1642.6406 GENERALSUPPLIES FIELD MAINTENANCE 79.00 383894 6/19/2014 111779 PIONEER RESEARCH CORPORATION 2,072.27 SPRAY FOR ASPHALT 344755 238354 1314.6406 GENERALSUPPLIES STREET RENOVATION 2,072.27 383895 6/19/2014 102748 PIRTEK PLYMOUTH 181.34 HOSE REPAIR 00006161 345070 51922280.001 5422.6180 CONTRACTED REPAIRS MAINT OF COURSE & GROUNDS 181.34 383896 6/19/2014 100961 POSTMASTER - USPS 350.00 NEWSLETTER POSTAGE 344837 061114 1628.6235 POSTAGE SENIOR CITIZENS 350.00 383897 6/1912014 134343 POWLESS, VIVIAN 85.00 ART CLASS REFUND 345169 061114 5101.4607 CLASS REGISTRATION ART CENTER REVENUES 85.00 383898 6/19/2014 129706 PREMIUM WATERS INC. 3.21 609425 345072 609425 -5/14 5310.6406 GENERALSUPPLIES POOL ADMINISTRATION 19.55 622833 345073 622833 -5/14 5720.6406 GENERALSUPPLIES EDINBOROUGH OPERATIONS 22.76 383899 6119/2014 100966 PRINTERS SERVICE INC 144.00 BLADE SHARPENING 344805 270134 5521.6215 EQUIPMENT MAINTENANCE ARENA ICE MAINT 144.00 R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 — 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383899 6/19/2014 100966 PRINTERS SERVICE INC Continued... 383900 6/1912014 112097 PUMP & METER SERVICE INC. 133.00 TANK MONITER REPAIR 344756 315702 1553.6180 CONTRACTED REPAIRS 133.00 383901 6/1912014 100970 QUALITY REFRIGERATION INC 425.85 FREEZER REPAIR 344807 0003000 5520.6180 CONTRACTED REPAIRS 425.85 383902 6119/2014 100972 R &R SPECIALTIES OF WISCONSIN INC. 319.20 ZAMBONI REPAIRS 344808 0054815 -IN 5521.61130 CONTRACTED REPAIRS 396.70 STUDDED TIRE 344809 0054827 -IN 5521.6215 EQUIPMENT MAINTENANCE 465.55 ZAMBONI SERVICE 345129 0054836 -IN 5521.6180 CONTRACTED REPAIRS 1,183.45 383903 6/19/2014 131061 RAINDROP IRRIGATION SERVICES LLC 361.97 IRRIGATION START -UP 345077 306 5720.6180 CONTRACTED REPAIRS 361.97 383904 6/19/2014 100974 RAYMOND E. HAEG PLUMBING 190.50 PLUMBING REPAIR - 7619 GLEASOMOOD1146 344757 16649 5913.6180 CONTRACTED REPAIRS 4,851.00 RPZ TESTS 00001144 344661 16656 5913.6103 PROFESSIONAL SERVICES 5,041.50 383905 6/19/2014 132392 RED POWER DIESEL SERVICE 337.75 BELTS, AIR CLEANER 344759 10589 1553.6530 REPAIR PARTS 112.90 CAB LIFT MOUNT 00005205 344758 B10330 1553.6530 REPAIR PARTS 450.65 383906 6/19/2014 134214 REDDIN, KATIE 95.00 CHEERLEADING CAMP REFUND 344838 REFUND 1600.4390.25 CHEERLEADING CAMP 95.00 383907 6119/2014 125936 REINDERS INC. 1,250.26 HERBICIDE 00006157 345078 3026386 -00 5431.6545 CHEMICALS 1,153.55 FERTILIZER, HERBICIDE 00002060 344978 3026587 -00 5761.6540 FERTILIZER 609.32 FERTILIZER, FUNGICIDE 00002060 344979 3026643 -00 5761.6540 FERTILIZER 3,013.13 383908 6/191 134056 RENNEKE, LEE 6/17/2014 12:38:21 Page- 28 Business Unit EQUIPMENT OPERATION GEN ARENA CONCESSIONS ARENA ICE MAINT ARENA ICE MAINT ARENA ICE MAINT EDINBOROUGH OPERATIONS DISTRIBUTION DISTRIBUTION EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN PARKADMIN. GENERAL RICHARDS GC MAINTENANCE CENTENNIAL LAKES OPERATING CENTENNIAL LAKES OPERATING R55CKR2 LOGIS101 2,010.50 CITY OF EDINA 383911 Council Check Register by GL 102408 RIGID HITCH INCORPORATED Council Check Register by Invoice & Summary 65.91 WIRINGADAPTERS 344761 6/19/2014 — 6/1912014 1553.6530 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383908 6/19/2014 134056 RENNEKE, LEE 6/1912014 Continued... 101000 RJM PRINTING INC. 100.24 MILEAGE REIMBURSEMENT 345170 061614 1490.6107 MILEAGE OR ALLOWANCE 56.50 100.24 344762 61597 1550.6406 363909 611912014 133627 REPUBLIC SERVICES #894 ENVELOPES 345130 81614 1260.6406 35,190.09 RECYCLING 344662 3517227 5952.6183 RECYCLING CHARGES BUSINESS CARDS 344811 35,190.09 1550.6406 GENERALSUPPLIES 383910 6/19/2014 2 010 50 123757 RIECHMANN PEDERSON DESIGN INC ABOUT TOW 6117/2014 12:38:21 Page - 29 Business Unit PUBLIC HEALTH RECYCLING N AD SALES 344810 614151 -7 1130.6123 MAGAZINE /NEWSLETTER EXPENSE COMMUNICATIONS EQUIPMENT OPERATION GEN CENTRAL SERVICES GENERAL ENGINEERING GENERAL CENTRAL SERVICES GENERAL FIRE DEPT. GENERAL POLICE DEPT. GENERAL 344641 14 -12348 5822.5513 COST OF GOODS SOLD WINE 50TH ST SELLING 227.00 383916 6119/2014 131676 SAINT'S COMMERCIAL FOOD SERVICE 234.24 COOKIES 345079 0084175 -IN 5421.5510 COST OF GOODS SOLD 234.24 383917 6/19/2014 104788 SANDY'S PROMOTIONAL STUFF 3,686.20 COASTERS 345171 SH4231 44012.1705.20 CONSULTING DESIGN 3,686.20 GRILL P23 50TH &FR PARKING &WAYFINDING 2,010.50 383911 6/1912014 102408 RIGID HITCH INCORPORATED 65.91 WIRINGADAPTERS 344761 1927536843 1553.6530 REPAIR PARTS 65.91 383912 6/1912014 101000 RJM PRINTING INC. 56.50 BUSINESS CARDS 344762 61597 1550.6406 GENERALSUPPLIES 270.21 ENVELOPES 345130 81614 1260.6406 GENERALSUPPLIES 56.50 BUSINESS CARDS 344811 81655 1550.6406 GENERALSUPPLIES 383.21 383913 6/1912014 100980 ROBERT B. HILL CO. 134.60 SOFTENER SALT 00003648 344760 00300236 1470.6406 GENERALSUPPLIES 134.60 383914 6119/2014 101979 ROFIDAL, KEVIN 57.75 K9 ITEMS 344812 REIMBURSE 1400.6406 GENERALSUPPLIES 57.75 383915 6119/2014 227 00 127774 ROOTSTOCK WINE COMPANY EQUIPMENT OPERATION GEN CENTRAL SERVICES GENERAL ENGINEERING GENERAL CENTRAL SERVICES GENERAL FIRE DEPT. GENERAL POLICE DEPT. GENERAL 344641 14 -12348 5822.5513 COST OF GOODS SOLD WINE 50TH ST SELLING 227.00 383916 6119/2014 131676 SAINT'S COMMERCIAL FOOD SERVICE 234.24 COOKIES 345079 0084175 -IN 5421.5510 COST OF GOODS SOLD 234.24 383917 6/19/2014 104788 SANDY'S PROMOTIONAL STUFF 3,686.20 COASTERS 345171 SH4231 44012.1705.20 CONSULTING DESIGN 3,686.20 GRILL P23 50TH &FR PARKING &WAYFINDING R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 — 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383917 611912014 104788 SANDY'S PROMOTIONAL STUFF Continued... 383918 6/1912014 100990 SCHARBER & SONS 130.61 TIGHTENER 00005380 344981 P48437 1553.6530 REPAIR PARTS 46.42 GASKET 344980 P48674 1553.6530 REPAIR PARTS 177.03 383919 611912014 124780 SCHAUER, LAUREN 59.98 FIRSTAID SUPPLIES 344982 REIMBURSE 5110.6406 GENERALSUPPLIES 59.98 383920 6/19/2014 134339 SCHAUERMAN, ABBY 50.00 JR GOLF GROUP LESSONS 345172 REFUND 5401.4602 LESSONS 50.00 383921 6/19/2014 129726 SCHMITT, LYNN 95.00 PLAYGROUND PROGRAM REFUND 344839 REFUND 1600.4390.29 HIGHLANDS EXPLORERS 95.00 383922 6119/2014 100991 SCHWAB - VOLLHABER - LUBRATT 97.26 CRANK CASE HEATER 00001214 344763 INV093360 1551.6406 GENERAL SUPPLIES 97.26 383923 6/19/2014 134070 SHAW, MARY JANE 109.00 MINI HAWKS PROGRAM REFUND 344840 REFUND 1600.4390.22 MINI HAWKS 109.00 383924 6/19/2014 134217 SHEROD, LIZ 40.00 PLAYGROUND PROGRAM REFUND 344841 REFUND 1600.4390.01 PLAYGROUND 40.00 383925 6/19/2014 100998 SHERWIN WILLIAMS CO. 139.58 YELLOW SAFETY PAINT 00001086 344764 1582 -9 1552.6406 GENERAL SUPPLIES 139.58 383926 6/1912014 104098 SHI INTERNATIONAL CORP - 858.00 VSPHERE STANDARD LICENSE 344765 801775441 1554.6160 DATA PROCESSING 858.00 383927 6/19/2014 103237 SHIRLEY, TOM 153.33 MILEAGE REIMBURSEMENT 345173 060914 5760.6107 MILEAGE OR ALLOWANCE 6/17/2014 12:38:21 Page - 30 Business Unit EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN ART CENTER ADMINISTRATION GOLF REVENUES PARKADMIN. GENERAL CITY HALL GENERAL PARKADMIN. GENERAL PARKADMIN. GENERAL CENT SVC PW BUILDING CENT SERV GEN - MIS CENTENNIA SADMIN EXPENSE R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383927 6119/2014 103237 SHIRLEY, TOM Continued... 5310.6513 5310.6105 1644.6103 5210.6180 1470.6215 5720.6180 5520.5510 5520.5510 5410.6107 5822.5513 5822.5512 5862.5513 5822.5513 5822.5512 5822.5513 5842.5512 5842.5513 5842.5512 5842.5513 5862.5513 5862.5512 5862.5513 OFFICE SUPPLIES DUES & SUBSCRIPTIONS 6/17/2014 12:38:21 Page - 31 Business Unit POOL ADMINISTRATION POOL ADMINISTRATION PROFESSIONAL SERVICES TREES & MAINTENANCE CONTRACTED REPAIRS EQUIPMENT MAINTENANCE CONTRACTED REPAIRS COST OF GOODS SOLD COST OF GOODS SOLD MILEAGE OR ALLOWANCE GOLF DOME PROGRAM FIRE DEPT. GENERAL EDINBOROUGH OPERATIONS ARENA CONCESSIONS ARENA CONCESSIONS GOLF ADMINISTRATION COST OF GOODS SOLD WINE 153.33 COST OF GOODS SOLD LIQUOR 50TH ST SELLING COST OF GOODS SOLD WINE 383928 6/19/2014 COST OF GOODS SOLD WINE 100999 SIGNAL SYSTEMS INC. COST OF GOODS SOLD LIQUOR 50TH ST SELLING COST OF GOODS SOLD WINE 486.95 TIME CARD BADGES, RACK 345081 13065451 YORK SELLING 146.80 TIME CLOCK RENTAL 345080 13065469 COST OF GOODS SOLD WINE 633.75 COST OF GOODS SOLD LIQUOR VERNON SELLING COST OF GOODS SOLD WINE 383929 611912014 134346 SILVER FOX SERVICES 1,018.87 TREE REMOVAL -4808 SCHOOL RD 345174 821553 1,018.87 383930 6/19/2014 105654 SIMPLEX GRINNELL LP 683.00 FIRE ALARM REPAIRS 345175 69761078 507.50 ALARM MONITORING 00060214 344813 77010589 495.00 RESET BEAM DETECTOR 345082 80195097 1,685.50 383931 611912014 131885 SISINNI FOOD SERVICES INC. 219.28 HOT DOG BUNS 344842 233718 90.40 HOT DOG BUNS 344843 238615 309.68 383932 6119/2014 100629 SMITH, AMY 271.04 MILEAGE REIMBURSEMENT 345176 061314 271.04 383933 6/19/2014 127878 SOUTHERN WINE AND SPIRITS 2,986.50 344642 1167731 1,188.28 344643 1167732 1,827.50 344905 1169026 473.50 344909 1170048 615.44 344910 1170049 1,580.04 344908 1170051 .50 344914 1170052 707.50 344912 1170053 5,998.88 344913 1170054 3,024.63 344911 1170055 1,230.00 344903 1170056 1,740.36 344906 1170057 241.50 344904 1170058 5310.6513 5310.6105 1644.6103 5210.6180 1470.6215 5720.6180 5520.5510 5520.5510 5410.6107 5822.5513 5822.5512 5862.5513 5822.5513 5822.5512 5822.5513 5842.5512 5842.5513 5842.5512 5842.5513 5862.5513 5862.5512 5862.5513 OFFICE SUPPLIES DUES & SUBSCRIPTIONS 6/17/2014 12:38:21 Page - 31 Business Unit POOL ADMINISTRATION POOL ADMINISTRATION PROFESSIONAL SERVICES TREES & MAINTENANCE CONTRACTED REPAIRS EQUIPMENT MAINTENANCE CONTRACTED REPAIRS COST OF GOODS SOLD COST OF GOODS SOLD MILEAGE OR ALLOWANCE GOLF DOME PROGRAM FIRE DEPT. GENERAL EDINBOROUGH OPERATIONS ARENA CONCESSIONS ARENA CONCESSIONS GOLF ADMINISTRATION COST OF GOODS SOLD WINE 50TH ST SELLING COST OF GOODS SOLD LIQUOR 50TH ST SELLING COST OF GOODS SOLD WINE VERNON SELLING COST OF GOODS SOLD WINE 50TH ST SELLING COST OF GOODS SOLD LIQUOR 50TH ST SELLING COST OF GOODS SOLD WINE 50TH ST SELLING COST OF GOODS SOLD LIQUOR YORK SELLING COST OF GOODS SOLD WINE YORK SELLING COST OF GOODS SOLD LIQUOR YORK SELLING COST OF GOODS SOLD WINE YORK SELLING COST OF GOODS SOLD WINE VERNON SELLING COST OF GOODS SOLD LIQUOR VERNON SELLING COST OF GOODS SOLD WINE VERNON SELLING R55CKR2 LOGIS101 CITY OFEDINA 6/17/201412:38:21 Council Check Register by GL Page- 32 Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383933 6/19/2014 127878 SOUTHERN WINE AND SPIRITS Continued... 40.62 344907 1170059 5862.5515 COST OF GOODS SOLD MIX VERNON SELLING 5,528.25 344902 1170060 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 1,064.50 345232 1171430 5822.5513 COST OF GOODS SOLD WINE 50TH ST SELLING 96.50 344915 5005968 5822.5513 COST OF GOODS SOLD WINE 50TH ST SELLING 664.50 344644 5006004 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 29,009.00 383934 6/19/2014 134218 SPALDING, DAVID 662.52 AMBULANCE OVERPAYMENT REFUND 344844 D61014 1470.4329 AMBULANCE FEES FIRE DEPT. GENERAL 662.52 383935 6/19/2014 131956 SPECIALIZED ENVIRONMENTAL TECHNOLOGIES 230.00 COMPOST PROMOTION 00001701 344814 15419 1643.6543 SOD & BLACK DIRT GENERAL TURF CARE 230.00 383936 6/1912014 101004 SPS COMPANIES 179.44 SINK FAUCET 00001164 345083 S2908546.002 1552.6406 GENERAL SUPPLIES CENT SVC PW BUILDING 179.44 383937 6/19/2014 121383 ST LOUIS PARK POLICE DEPARTMENT 172.00 CONSORTIUM TRAINING 344815 MAY 22 1401.6104 CONFERENCES & SCHOOLS EMERGENCY RESPONSE TEAM 172.00 383938 6/19/2014 133068 STEEL TOE BREWING LLC 163.75 345231 3262 5862.5514 COST OF GOODS SOLD BEER VERNON SELLING 159.50 344916 3263 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 323.25 383939 6/19/2014 134072 STICKS & TONES 200.00 CL PERFORMANCE 6/26/14 344945 060114 5760.6136 PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE 200.00 383940 6/19/2014 121492 SUPERIOR TURF SERVICES INC. 1,512.62 LEGACY 00006166 345084 10084 5422.6545 CHEMICALS MAINT OF COURSE & GROUNDS 1,512.62 383941 6/1912014 132412 SURFACE SPECIALISTS METRO INC. 180.00 WATERSLIDE REPAIR 345085 97898 5311.6180 CONTRACTED REPAIRS POOL OPERATION 180.00 R55CKR2 LOGIS101 345177 22041810 5440.5511 CITY OF EDINA PRO SHOP RETAIL SALES 194.75 345178 22163591 5440.5511 COST OF GOODS - PRO SHOP Council Check Register by GL 1,541.91 345179 22238985 5440.5511 COST OF GOODS - PRO SHOP Council Check Register by Invoice & Summary 225.30 345180 22262051 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 6/19/2014 - 6/19/2014 345181 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383942 611912014 PRO SHOP RETAIL SALES 122611 SWANK MOTION PICTURES INC. 345183 22271043 Continued... COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 350.00 MOVIE IN THE PARK RENTAL 344983 DB1934987 5760.6136 PROFESSIONAL SVC - OTHER PRO SHOP RETAIL SALES 272.78 350.00 22315070 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 383943 6119/2014 22315071 111616 T.D. ANDERSON INC. COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 257.07 345190 22320143 40.00 BEER LINE SERVICE 345086 490248 5421.6102 CONTRACTUAL SERVICES 22512056 5440.5511 40.00 PRO SHOP RETAIL SALES 190.26- 345185 22512709 383944 6/19/2014 PRO SHOP RETAIL SALES 101025 TAMARACK MATERIALS INC. 345186 22512733 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 273.60 CEILING TILES 00002139 345087 7112234 -00 5720.6406 GENERAL SUPPLIES 273.60 383945 6/1912014 50274 104932 TAYLOR MADE MERCHANDISE 6/17/2014 12:38:21 Page- 33 Business Unit CENTENNIAL LAKES ADMIN EXPENSE GRILL EDINBOROUGH OPERATIONS 383946 6/19/2014 120602 TEAGUE, CARY 72.80 MILEAGE REIMBURSEMENT 345191 061314 1140.6107 72.80 383947 6/19/2014 101029 TESSMAN COMPANY, THE 101.61 TERRA POTS 00006325 345088 S195852 -IN 5422.6541 101.61 383948 6/1912014 121253 THAYER, LARRY 173.60 MILEAGE REIMBURSEMENT 345192 061314 1652.6107 173.60 MILEAGE OR ALLOWANCE PLANNING PLANTINGS & TREES MAINT OF COURSE & GROUNDS MILEAGE OR ALLOWANCE WEED MOWING 345177 22041810 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 194.75 345178 22163591 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 1,541.91 345179 22238985 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 225.30 345180 22262051 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 272.78 345181 22271041 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 1,227.21 345182 22271042 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 272.78 345183 22271043 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 101.40 345187 22302223 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 272.78 345189 22315070 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 225.30 345188 22315071 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 257.07 345190 22320143 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 2,774.15- 345184 22512056 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 190.26- 345185 22512709 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 1,477.14- 345186 22512733 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES 383946 6/19/2014 120602 TEAGUE, CARY 72.80 MILEAGE REIMBURSEMENT 345191 061314 1140.6107 72.80 383947 6/19/2014 101029 TESSMAN COMPANY, THE 101.61 TERRA POTS 00006325 345088 S195852 -IN 5422.6541 101.61 383948 6/1912014 121253 THAYER, LARRY 173.60 MILEAGE REIMBURSEMENT 345192 061314 1652.6107 173.60 MILEAGE OR ALLOWANCE PLANNING PLANTINGS & TREES MAINT OF COURSE & GROUNDS MILEAGE OR ALLOWANCE WEED MOWING R55CKR2 LOGIS101 CITY OF EDINA 6/17/2014 12:38:21 Council Check Register by GL Page- 34 Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383949 6/19/2014 102798 THOMSON REUTERS -WEST Continued... 803.95 MAY 2014 SERVICES 344818 829696950 1400.6105 DUES & SUBSCRIPTIONS POLICE DEPT. GENERAL 803.95 383950 6119/2014 101035 THORPE DISTRIBUTING COMPANY 428.00 345089 827543 5420.5514 COST OF GOODS SOLD BEER CLUB HOUSE 161.25 344918 828244 5862.5514 COST OF GOODS SOLD BEER VERNON SELLING 6,500.35 344917 828245 5862.5514 COST OF GOODS SOLD BEER VERNON SELLING 7,089.60 383951 6/19/2014 127318 TIGER ATHLETICS INC. 1,710.00 FIRE STATION MONITORING 344766 EFD MAY2014 1470.6104 CONFERENCES & SCHOOLS FIRE DEPT. GENERAL 1,710.00 383952 6/19/2014 102536 TIMEMARK INCORPORATED 67.09 BATTERIES 00002605 345131 114737 1262.6406 GENERALSUPPLIES TRANSPORTATION 168.32 BATTERIES, CLAMPS 00002612 345132 114753 1262.6406 GENERAL SUPPLIES TRANSPORTATION 235.41 383953 6/19/2014 103277 TITAN MACHINERY 11.80 BULBS 344817 3940671 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 121.00 LIGHTASSEMBLY 00005257 344816 3940676 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 132.80 383954 6/19/2014 128347 TKO WINES INC. 727.80 344920 907870 5822.5513 COST OF GOODS SOLD WINE 50TH ST SELLING 288.00 344919 907878 5822.5513 COST OF GOODS SOLD WINE 50TH ST SELLING 1,015.80 383955 6/19/2014 120695 T- MOBILE 32.59 ENGINEERING PHONE 344984 477067848 -5/14 1261.6188 TELEPHONE CONSTRUCTION MANAGEMENT 90.00 SQUADS SERVICE 344984 477067848 -5/14 1400.6160 DATA PROCESSING POLICE DEPT. GENERAL 122.59 383956 6/19/2014 101038 TOLL GAS & WELDING SUPPLY 52.55 WELDING GAS 344767 40009332 1553.6580 WELDING SUPPLIES EQUIPMENT OPERATION GEN 31.53 WELDING TANKS 344985 40009333 5761.6406 GENERAL SUPPLIES CENTENNIAL LAKES OPERATING 84.08 383957 6/19/2014 103218 TRI STATE BOBCAT 894.00 MULCH 345193 P33097 1314.6406 GENERAL SUPPLIES STREET R TION R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 — 6/1912014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383967 6/1912014 103218 TRI STATE BOBCAT Continued... 894.00 383958 6119/2014 101042 TRIARCO 623.19 ART SUPPLIES 00009338 344768 943269 5110.6564 CRAFT SUPPLIES 623.19 383959 6119/2014 134213 TUCKER, ANGELA 133.00 PARK & REC PROGRAM REFUND 344845 REFUND 1600.4390.03 FAB 4 & 5 133.00 383960 6/19/2014 118190 TURFWERKS LLC 85.95 ROCKER SWITCH 00005371 344769 T123482 1553.6530 REPAIR PARTS 85.95 383961 6/19/2014 101046 TWIN CITY FILTER SERVICE INC. 569.07 FILTERS OOOOB083 344770 0552730 -IN 5511.6406 GENERAL SUPPLIES 569.07 383962 611912014 102150 TWIN CITY SEED CO. 798.00 HYDRO SEED, FERTILIZER 344771 32385 47085.6710 EQUIPMENT REPLACEMENT 798.00 383963 6/19/2014 134220 U.S. DEPARTMENT OF AGRICULTURE 4,699.40 DEER MANAGEMENT 344846 3001270655 1509.6103 PROFESSIONAL SERVICES 4,699.40 383964 6119/2014 103973 ULINE 2,300.00 SAND BAGS 00001131 344664 59154225 5939.6406 GENERAL SUPPLIES 2,368.07 SAND BAGS 00001131 344663 59154226 5939.6406 GENERAL SUPPLIES 4,668.07 383965 6119/2014 126032 UNI- SELECT USA 263.90 PARTS 344819 053114 1553.6530 REPAIR PARTS 263.90 383966 6/1912014 131967 UNIVERSAL ATHLETIC SERVICE INC. 197.93 HOME PLATE, BASE ANCHORS 00001201 344986 1501 - 002127 1642.6406 GENERALSUPPLIES 309.98 BASE SET, HOME PLATE 00001264 344772 1501 - 002199 47085.6710 EQUIPMENT REPLACEMENT 74.97 BASEANCHORS 00001272 344987 1501 - 002209 47085.6710 EQUIPMENT REPLACEMENT 582.88 6/17/2014 12:38:21 Page- 35 Business Unit ART CENTER ADMINISTRATION PARKADMIN. GENERAL EQUIPMENT OPERATION GEN ARENA BLDG /GROUNDS GARDEN PK BASEBALL FIELD DEER CONTROL STORM SEWER SPECIAL PROJECTS STORM SEWER SPECIAL PROJECTS EQUIPMENT OPERATION GEN FIELD MAINTENANCE GARDEN PK BASEBALL FIELD GARDEN PK BASEBALL FIELD R55CKR2 LOGIS101 CITY OF EDINA 6/17/2014 12:38:21 Council Check Register by GL Page- 36 Council Check Register by Invoice & Summary 6/19/2014 — 6119/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383966 6/1912014 131967 UNIVERSAL ATHLETIC SERVICE INC. Continued... 383967 6119/2014 131382 US FOODS CULINARY EQUIPMENT & SUPPLIES 407.00 MICROWAVE 345091 8508301 5320.6406 GENERAL SUPPLIES POOL CONCESSIONS 628.00 HOT DOG GRILLER 345090 8508302 5320.6406 GENERAL SUPPLIES POOL CONCESSIONS 1,035.00 383968 6119/2014 100060 USPS 4,000.00 ACCT #03620836 344820 6/14 POSTAGE 1550.6235 POSTAGE CENTRAL SERVICES GENERAL 4,000.00 383969 6/19/2014 101058 VAN PAPER CO. 616.80 CAN LINERS 00001224 344773 313152 -00 1645.6182 RUBBISH REMOVAL LITTER REMOVAL 665.35 TOWELS, CAN LINERS, CUPS 345092 313170 -00 5421.6406 GENERAL SUPPLIES GRILL 1,282.15 383970 6/1912014 133470 VANGUARD CLEANING SYSTEMS OF MINNESOTA 1,980.00 JUNE 2014 SERVICE 344821 30272 5510.6103 PROFESSIONAL SERVICES ARENA ADMINISTRATION 1,980.00 383971 6/19/2014 101063 VERSATILE VEHICLES INC. 543.31 BRUSHES 00006105 345096 605140033 5423.6530 REPAIR PARTS GOLF CARS 1,050.00 CART LEASE 345095 606140009 5423.6216 LEASE LINES GOLF CARS 350.00 CART LEASE 345093 606140010 5423.6216 LEASE LINES GOLF CARS 315.28 CART LEASE 345094 606140011 5423.6216 LEASE LINES GOLF CARS 2,258.59 383972 6/19/2014 122050 VFW MID - WINTER CONFERENCE PROGRAM 150.00 BRAEMAR GOLF DOME AD 345098 061214 5410.6122 ADVERTISING OTHER GOLF ADMINISTRATION 150.00 383973 6/19/2014 102377 VIETNAM VETERANS ORGANIZATION BOOK 150.00 BRAEMAR GOLF DOME AD 345097 061214 5410.6122 ADVERTISING OTHER GOLF ADMINISTRATION 150.00 383974 6/19/2014 119454 VINOCOPIA 136.50 344645 0100085 -IN 5822.5512 COST OF GOODS SOLD LIQUOR 50TH ST SELLING 136.50 383975 6/19/2014 102218 VINTAGE ONE WINES INC. 293.25 344921 16566 5822.5513 COST OF GOODS SOLD WINE 50TH ST S:= R55CKR2 LOGIS101 CITY OF EDINA 6/17/2014 12:38:21 Council Check Register by GL Page - 37 Council Check Register by Invoice & Summary 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383976 611912014 102218 VINTAGE ONE WINES INC. Continued... 293.25 383976 6/19/2014 100023 VOGEL, ROBERT C. 2,875.00 CONSULTING SERVICES 345099 214019 1140.6103 PROFESSIONAL SERVICES PLANNING 2,875.00 383977 6119/2014 134219 WALSH, SHELBIE 38.87 STEEL TOE SHOES 344847 061014 1263.6406 GENERALSUPPLIES ENVIRONMENT 38.87 383978 6/19/2014 133515 WASHINGTON COUNTY COURT ADMIN 300.00 OUT OT COUNTY WARRANT 344848 061214 1000.2055 DUE TO OTHER GOVERNMENTS GENERAL FUND BALANCE SHEET 300.00 383979 6/1912014 103088 WASTE MANAGEMENT OF WI -MN 36.30 344665 5478- 2608 -7 1481.6182 RUBBISH REMOVAL YORK FIRE STATION 67.34 344665 5478 - 2808 -7 1470.6182 RUBBISH REMOVAL FIRE DEPT. GENERAL 199.96 344665 5478 - 2808 -7 1551.6182 RUBBISH REMOVAL CITY HALL GENERAL 210.40 344665 5478 - 2808 -7 1645.6182 RUBBISH REMOVAL LITTER REMOVAL 245.14 344665 5478- 2808 -7 1628.6182 RUBBISH REMOVAL SENIOR CITIZENS 294.32 344665 5478 - 2808 -7 1645.6182 RUBBISH REMOVAL LITTER REMOVAL 394.50 344665 5478 - 2808 -7 1645.6182 RUBBISH REMOVAL LITTER REMOVAL 406.70 344665 5478 - 2808 -7 1301.6182 RUBBISH REMOVAL GENERAL MAINTENANCE 406.70 344665 5478 - 2808 -7 1552.6182 RUBBISH REMOVAL CENT SVC PW BUILDING 47.34 344665 5478 - 2808 -7 5111.6182 RUBBISH REMOVAL ART CENTER BLDG /MAINT 55.34 344665 5478 - 2808 -7 5210.6182 RUBBISH REMOVAL GOLF DOME PROGRAM 240.40 344665 5478 - 2808 -7 5311.6182 RUBBISH REMOVAL POOL OPERATION 110.46 344665 5478 - 2808 -7 5430.6182 RUBBISH REMOVAL RICHARDS GOLF COURSE 275.79 344665 5478 - 2808 -7 5420.6182 RUBBISH REMOVAL CLUB HOUSE 613.86 344665 5478 - 2808 -7 5422.6182 RUBBISH REMOVAL MAINT OF COURSE & GROUNDS 333.57 344665 5478 - 2808 -7 5511.6182 RUBBISH REMOVAL ARENA BLDG /GROUNDS 945.81 344665 5478 - 2808 -7 5720.6182 RUBBISH REMOVAL EDINBOROUGH OPERATIONS 55.34 344665 5478- 2808 -7 5861.6182 RUBBISH REMOVAL VERNON OCCUPANCY 187.42 344665 5478 - 2808 -7 5841.6182 RUBBISH REMOVAL YORK OCCUPANCY 121.51 30 YD RENTAL 345100 6926008 5111.6182 RUBBISH REMOVAL ART CENTER BLDG /MAINT 5,248.20 383980 6/19/2014 102020 WELLS, GARY 128.70 ZIP TIES FOR SANDBAGS 344776 061014 5939.6406 GENERAL SUPPLIES STORM SEWER SPECIAL PROJECTS 128.70 R55CKR2 LOGIS101 111.84 CITY OF EDINA BOTH ST SELLING COST OF GOODS SOLD WINE 50TH ST SELLING Council Check Register by GL 383982 6119/2014 COST OF GOODS SOLD WINE 102133 WILSON SPORTING GOODS Council Check Register by Invoice & Summary VERNON SELLING COST OF GOODS SOLD LIQUOR VERNON SELLING 6/19/2014 - 6/19/2014 555.94 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 383980 611912014 102020 WELLS, GARY 555.94 Continued... 383981 6/19/2014 101079 WHEELER LUMBER 383983 6/19/2014 111.84 GUARD RAIL POST 00001191 344775 1220 - 032747 1343.6406 GENERAL SUPPLIES 6/17/2014 12:38:21 Page - 38 Business Unit BRIDGES GUARD RAILS COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES ADVERTISING OTHER GOLF ADMINISTRATION COST OF GOODS SOLD WINE 111.84 COST OF GOODS SOLD WINE BOTH ST SELLING COST OF GOODS SOLD WINE 50TH ST SELLING COST OF GOODS SOLD WINE 383982 6119/2014 COST OF GOODS SOLD WINE 102133 WILSON SPORTING GOODS COST OF GOODS SOLD WINE VERNON SELLING COST OF GOODS SOLD LIQUOR VERNON SELLING COST OF GOODS SOLD MIX 555.94 GOLF BALLS 345194 4515858194 5440.5511 COST OF GOODS SOLD LIQUOR 50TH ST S 555.94 383983 6/19/2014 132064 WINDFELDT, STEPHANIE 150.00 VIDEO RESHOOT 345195 060514 5410.6122 150.00 383984 6119/2014 101033 WINE COMPANY, THE 246.30 344647 363174 -00 5822.5513 88.00 344646 363294 -00 5822.5513 360.25 344924 363791 -00 5822.5513 1,181.45 344923 363792 -00 5842.5513 949.52 344922 363934 -00 5862.5513 2,825.52 383985 6/1912014 101312 WINE MERCHANTS 1,430.64 344648 505841 5822.5513 1,414.47 345233 506802 5842.5513 4,810.17 344925 506803 5862.5513 121.12- 344926 65345 5862.5513 7,534.16 383986 611912014 124291 WIRTZ BEVERAGE MINNESOTA 146.29 344649 1080184399 5822.5512 1,207.18 344650 1080184400 5822.5512 2,489.85 344651 1080187305 5822.5512 1,456.15 344652 1080187306 5822.5513 146.30 344931 1080190167 5862.5515 6,3$5.00 344930 1080190168 5862.5513 2,713.30 344929 1080190169 5862.5512 184.27 344928 1080190170 5862.5515 73.15 344937 10BO190171 5822.5515 795.50 344936 1060190172 5822.5513 1,171.03 344927 1080190173 , -' 5822.5512 6/17/2014 12:38:21 Page - 38 Business Unit BRIDGES GUARD RAILS COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES ADVERTISING OTHER GOLF ADMINISTRATION COST OF GOODS SOLD WINE 50TH ST SELLING COST OF GOODS SOLD WINE BOTH ST SELLING COST OF GOODS SOLD WINE 50TH ST SELLING COST OF GOODS SOLD WINE YORK SELLING COST OF GOODS SOLD WINE VERNON SELLING COST OF GOODS SOLD WINE 50TH ST SELLING COST OF GOODS SOLD WINE YORK SELLING COST OF GOODS SOLD WINE VERNON SELLING COST OF GOODS SOLD WINE VERNON SELLING COST OF GOODS SOLD LIQUOR 50TH ST SELLING COST OF GOODS SOLD LIQUOR 50TH ST SELLING COST OF GOODS SOLD LIQUOR 50TH ST SELLING COST OF GOODS SOLD WINE 50TH ST SELLING COST OF GOODS SOLD MIX VERNON SELLING COST OF GOODS SOLD WINE VERNON SELLING COST OF GOODS SOLD LIQUOR VERNON SELLING COST OF GOODS SOLD MIX VERNON SELLING COST OF GOODS SOLD MIX 50TH ST SELLING COST OF GOODS SOLD WINE 50TH ST SELLING COST OF GOODS SOLD LIQUOR 50TH ST S R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 383988 6/19/2014 105740 WSB & ASSOCIATES INC. 5,746.75 HAZELTON RD DESIGN 48,117.00 FRANCE AVE TE CONSTRUCTION 53,863.75 383989 611912014 4,999.08 2,001.12 458.74 4,455.13 359.45 12,273.52 101726 XCEL ENERGY 51- 6824328 -7 51- 6229265 -9 51- 5619094 -8 51- 5888961 -7 51- 4197645 -8 345137 11- 01686 -460 345136 6- 01686 -440 01417.1705.21 01404.1705.21 Subledger Account Description Continued... COST OF GOODS SOLD WINE COST OF GOODS SOLD MIX COST OF GOODS SOLD LIQUOR COST OF GOODS SOLD MIX COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD MIX COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD MIX COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD MIX COST OF GOODS SOLD BEER CONSULTING INSPECTION CONSULTING INSPECTION 6/17/2014 12:38:21 Page - 39 Business Unit YORK SELLING YORK SELLING YORK SELLING VERNON SELLING 50TH ST SELLING 50TH ST SELLING 50TH ST SELLING RICHARDS GOLF COURSE GRILL GRILL VERNON SELLING YORK SELLING YORK SELLING YORK SELLING VERNON SELLING 50TH ST SELLING 50TH ST SELLING YORK SELLING HAZELTON RD IMPROVEMENTS FRANCE AVE PEDESTRIAN CORRIDOR 344825 414897649 5420.6185 6/19/2014 - 6/19/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No 383986 6/19/2014 124291 WIRTZ BEVERAGE MINNESOTA LIGHT & POWER CENT SVC PW BUILDING 3,376.26 415055957 344935 1080190214 5842.5513 129.01 415205892 344933 1080190215 5842.5515 9,466.94 344934 1080190216 5842.5512 49.15 344932 1080190327 5862.5515 29,789.38 383987 6119/2014 124529 WIRTZ BEVERAGE MINNESOTA BEER INC 1,102.05 344655 1090236356 5822.5514 123.00 344654 1090236357 5822.5514 21.50 344653 1090236358 5822.5515 212.55 345240 1090236602 5430.5514 342.40 345239 1090237178 5421.5514 310.00 345238 1090237179 5421.5514 2,221.45 344938 1090237349 5862.5514 2,954.75 344941 1090238259 5842.5514 432.00 344939 1090238260 5842.5514 43.00 344940 1090238281 5842.5515 238.50 345236 1090240772 5862.5514 1,557.95 345235 1090240773 5822.5514 21.50 345234 1090240774 5822.5515 1,859.70 345237 1090240775 5842.5514 11,440.35 383988 6/19/2014 105740 WSB & ASSOCIATES INC. 5,746.75 HAZELTON RD DESIGN 48,117.00 FRANCE AVE TE CONSTRUCTION 53,863.75 383989 611912014 4,999.08 2,001.12 458.74 4,455.13 359.45 12,273.52 101726 XCEL ENERGY 51- 6824328 -7 51- 6229265 -9 51- 5619094 -8 51- 5888961 -7 51- 4197645 -8 345137 11- 01686 -460 345136 6- 01686 -440 01417.1705.21 01404.1705.21 Subledger Account Description Continued... COST OF GOODS SOLD WINE COST OF GOODS SOLD MIX COST OF GOODS SOLD LIQUOR COST OF GOODS SOLD MIX COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD MIX COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD MIX COST OF GOODS SOLD BEER COST OF GOODS SOLD BEER COST OF GOODS SOLD MIX COST OF GOODS SOLD BEER CONSULTING INSPECTION CONSULTING INSPECTION 6/17/2014 12:38:21 Page - 39 Business Unit YORK SELLING YORK SELLING YORK SELLING VERNON SELLING 50TH ST SELLING 50TH ST SELLING 50TH ST SELLING RICHARDS GOLF COURSE GRILL GRILL VERNON SELLING YORK SELLING YORK SELLING YORK SELLING VERNON SELLING 50TH ST SELLING 50TH ST SELLING YORK SELLING HAZELTON RD IMPROVEMENTS FRANCE AVE PEDESTRIAN CORRIDOR 344825 414897649 5420.6185 LIGHT & POWER CLUB HOUSE 344824 414951024 1470.6185 LIGHT & POWER FIRE DEPT. GENERAL 344822 415052273 1552.6185 LIGHT & POWER CENT SVC PW BUILDING 344666 415055957 1375.6185 LIGHT & POWER PARKING RAMP 344823 415205892 1322.6185 LIGHT & POWER STREET LIGHTING ORNAMENTAL 383990 6/19/2014 134330 ZOLLMAN, MARY 89.00 ART CENTER CLASS REFUND 344988 REIMBURSE 5101.4607 CLASS REGISTRATION ART CENTER REVENUES 89.00 R55CKR2 LOGIS101 Check # Date Amount Supplier / Explanation 1,987,607.06 Grand Total CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/19/2014 — 6/1912014 PO # Doc No Inv No Account No Subledger Account Description Payment Instrument Totals Checks A/PACH Payment Total Payments 1,980, 999.93 1,987,607.06 6/17/2014 12:38:21 Page - 40 Business Unit R55CKS2 LOGIS100 CITY OF EDINA Council Check Summary 6/19/2014 - 6/19/2014 Company Amount 01000 GENERAL FUND 126,452.58 02300 POLICE SPECIAL REVENUE 1,740.05 02500 PEDESTRIAN AND CYCLIST SAFETY 21,459.70 02600 ARTS AND CULTURE FUND 1,000.00 03300 FIR DEBT SERVICE FUND 1,941.90 04000 WORKING CAPITAL FUND 603,377.61 04500 CANDO FUND 4,358.00 05100 ART CENTER FUND 2,861.29 05200 GOLF DOME FUND 1,137.41 05300 AQUATIC CENTER FUND 26,233.64 05400 GOLF COURSE FUND 27,585.53 05500 ICE ARENA FUND 11,321.09 05700 EDINBOROUGH PARK FUND 6,308.57 05750 CENTENNIAL LAKES PARK FUND 17,426.08 05800 LIQUOR FUND 209,417.81 05900 UTILITY FUND 588,026.24 05930 STORM SEWER FUND 226,954.60 05950 RECYCLING FUND 35,190.09 07400 PSTF AGENCY FUND 2,232.01 09232 CENTENNIAL TIF DISTRICT 1,757.50 09238 SOUTHDALE 2 DISTRICT 26,516.75 09240 PENTAGON PARK DISTRICT 44,308.61 Report Totals 1,987,607.06 6/17/2014 12:38:34 Page- 1 We confirm to the best of our knowledge and belief, that these claims comply in all material respects with the requirements of the City of Edina purchasing polic' s procedures date-, to ICE?Ind t 4 anager t t eF! f[[[ � .. �- {�e` ,? 1 j t , 3. �' ., A �� R55CKR2 LOGIS101 CITY OF EDINA 6/24/2014 8:01:11 Council Check Register by GL Page- Council Check Register by Invoice & Summary 6/26/2014 - 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 54 6/2612014 101365 BELLBOY CORPORATION 1,140.70 345465 43460400 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 697.50 345464 43460500 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 112.50 345877 43460600 5842.5515 COST OF GOODS SOLD MIX YORK SELLING 627.75 345879 43479100 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 131.55 345878 43566100 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 1,783.89 345880 43566200 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 142.03 345466 90339600 5842.5515 COST OF GOODS SOLD MIX YORK SELLING 4,635.92 55 6/2612014 100648 BERTELSON OFFICE PRODUCTS 37.63 REFILL INK, FILE POCKETS 00004021 345273 WO- 940626 -1 1160.6513 OFFICE SUPPLIES FINANCE 5.55 HIGHLIGHTERS 00004021 345274 WO- 940710 -1 1160.6513 OFFICE SUPPLIES FINANCE 210.92 OFFICE SUPPLIES 00003061 345275 WO- 940774 -1 1400.6513 OFFICE SUPPLIES POLICE DEPT. GENERAL 158.62 OFFICE SUPPLIES 345562 WO- 941469 -1 1550.6406 GENERAL SUPPLIES CENTRAL SERVICES GENERAL 40.79 FILE JACKETS 345826 WO- 941557 -1 1600.6406 GENERALSUPPLIES PARK ADMIN. GENERAL 453.51 56 6/2612014 101518 GRAUSAM, STEVE 68.80 WATER FOR TASTE OF EDINA 345572 061114 5842.6406 GENERAL SUPPLIES YORK SELLING 114.24 MILEAGE REIMBURSEMENT 345573 061214 5840.6107 MILEAGE OR ALLOWANCE LIQUOR YORK GENERAL 183.04 57 6/2612014 100906 MTI DISTRIBUTING INC. 50.94 SWITCH 00006171 345433 961894 -00 5422.6530 REPAIR PARTS MAINT OF COURSE & GROUNDS 161.07 FILTERS 00006174 345434 962781 -00 5422.6530 REPAIR PARTS MAINT OF COURSE & GROUNDS 461.22 IRRIGATION REPAIRS 00001293 345336 963619 -00 1642.6406 GENERAL SUPPLIES FIELD MAINTENANCE 673.23 383991 6/26/2014 133644 A DYNAMIC DOOR CO INC. 651.80 GARAGE DOOR REPAIR 345264 21406042 1553.6585 ACCESSORIES EQUIPMENT OPERATION GEN 651.80 383992 6/26/2014 134411 ABRAHAM, ALVIN 47.28 UTILITY OVERPAYMENT REFUND 345848 7705 PONDWOOD 5900.2015 CUSTOMER REFUND UTILITY BALANCE SHEET 47.28 383993 6126/2014 102971 ACE ICE COMPANY 101.20 345875 1798651 5842.5515 COST OF GOODS SOLD MIX YORK SELLING 83.50 345876 1799154 5842.5515 COST OF GOODS SOLD MIX YORK SELLING 184.70 R55CKR2 LOGIS101 CITY OF EDINA 6/24/2014 8:01:11 Council Check Register by GL Page- 2 Council Check Register by Invoice & Summary 6/26/2014 — 6/26/2014 Check # Date Amount Supplier/ Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 383993 6/26/2014 102971 ACE ICE COMPANY Continued... 383994 6/2612014 129468 ACME TOOLS 222.00 SHOVELS 345265 2653047 1314.6406 GENERAL SUPPLIES STREET RENOVATION 222.00 383995 6/26/2014 132445 AM CRAFT SPIRITS INC. 138.00 345459 6816 5862.5515 COST OF GOODS SOLD MIX VERNON SELLING 138.00 383996 612612014 100665 AMSAN 7.57 GASKET 00001198 345266 312409790 1646.6530 REPAIR PARTS BUILDING MAINTENANCE 13.13 TANK COVER 00001198 345267 312515455 1646.6530 REPAIR PARTS BUILDING MAINTENANCE 20.70 383997 6/26/2014 129123 AMUNDSON, RONALD 100.00 AMBULANCE OVERPAYMENT REFUND 345387 061814 1470.4329 AMBULANCE FEES FIRE DEPT. GENERAL 100.00 383998 6/26/2014 100630 ANCHOR PAPER COMPANY 16,240.76 ABOUT TOWN PAPER 345268 10400321 -00 1130.6123 MAGAZINE /NEWSLETTER EXPENSE COMMUNICATIONS 16,240.76 383999 6126/2014 102172 APPERT'S FOODSERVICE 895.04 FOOD 345269 406130532 5421.5510 COST OF GOODS SOLD GRILL 895.04 384000 6126/2014 100632 AQUA ENGINEERING 5,362.00 REMAINING % IRRIGATION SYSTEM 345270 64798 47089.6710 EQUIPMENT REPLACEMENT ALDEN PARK IRRIGATION 5,362.00 384001 6/26/2014 103680 ARAMARK REFRESHMENT SRVCS 464.27 COFFEE 345271 1129457 1550.6406 GENERAL SUPPLIES CENTRAL SERVICES GENERAL 464.27 384002 6/2612014 101677 ARMCOM DISTRIBUTING CO. 93.60 CEILING TILES 00001258 345388 10064243 1470.6406 GENERAL SUPPLIES FIRE DEPT. GENERAL 93.60 384003 6/26/2014 132031 ARTISAN BEER COMPANY 7.00- 345463 13987 5842.5514 COST OF GOODS SOLD BEER YORK SELLING R55CKR2 LOGIS101 CITY OF EDINA 6/24/2014 8:01:11 Council Check Register by GL Page- 3 Council Check Register by Invoice & Summary 6/2612014 -- 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 384003 6/26/2014 132031 ARTISAN BEER COMPANY Continued... 7.84- 345462 16389 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 1,358.00 345461 55157 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 1,011.75 345460 55159 5862.5514 COST OF GOODS SOLD BEER VERNON SELLING 2,354.91 384004 6126/2014 100638 BACHMAN'S 522.81 SHRUBS 00001281 345272 515752 1643.6103 PROFESSIONAL SERVICES GENERAL TURF CARE 847.58 SHRUBS 00001281 345272 515752 1551.6180 CONTRACTED REPAIRS CITY HALL GENERAL 124.58 SHRUB REPLACEMENT 00001319 345561 518400 1644.6541 PLANTINGS & TREES TREES & MAINTENANCE 209.00 SHRUB REPLACEMENT 00001319 345561 518400 1551.6180 CONTRACTED REPAIRS CITY HALL GENERAL 1,703.97 384005 6/26/2014 103241 BALDINGER, WENDY 200.00 CL PERFORMANCE 7/08/14 345382 060114 5760.6136 PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE 200.00 384006 6/26/2014 102449 BATTERY WHOLESALE INC. 1,899.16 GOLF CART BATTERIES 345390 C38040 5423.6530 REPAIR PARTS GOLF CARS 1,899.16 GOLF CART BATTERIES 345389 C38977 5423.6530 REPAIR PARTS GOLF CARS 510.00- CORE RETURNS 345391 C39256 5423.6530 REPAIR PARTS GOLF CARS 3,288.32 384007 6/26/2014 103486 BEND IN THE RIVER BIG BAND 125.00 CL PERFORMANCE 7109/14 345384 060114 5760.6136 PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE 125.00 384008 6/26/2014 108670 BERNER, JIM 150.00 CL FARMERS MARKET 7 /10/14 345386 060114 5760.6136 PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE 150.00 384009 6/26/2014 101676 BIFFS INC 330.00 TOILET RENTAL 345849 W528445 2611.6151 EQUIPMENT RENTAL MUSIC IN EDINA 330.00 384010 6/26/2014 130569 BINTNER, ROSS 326626 REIMBURSEMENT 1260.6107 326626 REIMBURSEMENT 1260.6104 256.00 384011 6/26/2014 133925 BIX PRODUCE CO. MILEAGE OR ALLOWANCE CONFERENCES & SCHOOLS ENGINEERING GENERAL ENGINEERING GENERAL R55CKR2 LOGIS101 00003796 345393 81453838 CITY OF EDINA FIRSTAID SUPPLIES FIRE DEPT. GENERAL 73.14 AMBULANCE SUPPLIES 00003796 345392 81453839 Council Check Register by GL FIRSTAID SUPPLIES FIRE DEPT. GENERAL 279.19 2340:036448 Council Check Register by Invoice & Summary 388.98 384014 6/26/2014 119351 BOURGET IMPORTS 6/26/2014 - 6/26/2014 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 384011 6/2612014 345467 133926 SIX PRODUCE CO. 5842.5513 Continued... YORK SELLING 210.25 FOOD 345276 02901215 5421.5510 COST OF GOODS SOLD REFUND 210.25 250.00 384012 6126/2014 384017 125268 BLUE COMPACTOR SERVICES 130485 BRUESKE, TARA 366.00 COMPACTOR RENTAL 345277 JUNE2014 -1 4095.6103 PROFESSIONAL SERVICES CL PERFORMANCE 7 /08/14 366.00 060114 384013 6/2612014 105367 BOUND TREE MEDICAL LLC 384018 6/24/2014 8:01:11 Page- 4 Business Unit GRILL 50TH STREET RUBBISH 206.05 AMBULANCE SUPPLIES 00003796 345393 81453838 1470.6510 FIRSTAID SUPPLIES FIRE DEPT. GENERAL 73.14 AMBULANCE SUPPLIES 00003796 345392 81453839 1470.6510 FIRSTAID SUPPLIES FIRE DEPT. GENERAL 279.19 2340:036448 388.98 384014 6/26/2014 119351 BOURGET IMPORTS 384016 6/26/2014 3,191.98 345468 120378 5822.5513 COST OF GOODS SOLD WINE 50TH ST SELLING 169.54 345467 120384 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 384015 6/26/2014 122496 BREAKTIME BEVERAGE INC. 388.98 CANDY 345278 2340:036448 388.98 384016 6/26/2014 134392 BROWN, DAVID 16.95 RAINED OUT EVENT 345394 REFUND 233.05 RAINED OUT EVENT 345394 REFUND 250.00 384017 6/26/2014 130485 BRUESKE, TARA 125.00 CL PERFORMANCE 7 /08/14 345383 060114 125.00 384018 6/26/2014 134389 BRYANT, DANIEL 20.80 PERMIT REFUND 345395 ED131493 20.80 384019 6/26/2014 122074 BUIE, BARB 53.53 PETTY CASH 345827 061914 65.58 PETTY CASH 345827 061914 70.71 PETTY CASH 345827 061914 189.82 5421.5510 5750.2039 5751.4555 5760.6136 1495.4111 COST OF GOODS SOLD SALES & USE TAX PAYABLE CENTENNIAL LAKES PARK GRILL CENTENNIAL LAKES BALANCE SHEET CENTENNIAL LAKES REVENUE PROFESSIONAL SVC -OTHER CENTENNIAL LAKES ADMIN EXPENSE BUILDING PERMITS INSPECTIONS 5760.6513 OFFICE SUPPLIES CENTENNIAL LAKES ADMIN EXPENSE 5760.6406 GENERALSUPPLIES CENTENNIAL LAKES ADMIN EXPENSE 5761.6406 GENERAL SUPPLIES CENTENNIAL LAKES OPERATING R55CKR2 LOGIS101 150.00 CITY OF EDINA 345380 060114 5760.6136 Council Check Register by GL CENTENNIAL LAKES ADMIN EXPENSE 150.00 Council Check Register by Invoice & Summary 6/26/2014 - 6/2612014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 384020 6/26/2014 116346 CALHOUN BEACH FRAMING Continued... 251.11 INTERN PHOTO FRAME 345563 020005256 1120.6406 GENERAL SUPPLIES 251.11 2310.6406 GENERAL SUPPLIES E911 364021 6/2612014 120935 CAMPBELL KNUTSON 952 285 -2951 345280 6/24/2014 8:01:11 Page- 5 Business Unit ADMINISTRATION 13,803.61 LEGAL COUNSEL 345279 2851- OOOG87 1195.6131 PROFESSIONAL SERV - LEGAL LEGAL SERVICES 13,803.61 384022 612612014 119455 CAPITOL BEVERAGE SALES 5,028.75 345469 349799 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 5,028.75 384023 6/26/2014 124184 CC SEPTET 150.00 CL PERFORMANCE 7/06/14 345380 060114 5760.6136 PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE 150.00 384024 6/2612014 123898 CENTURYLINK 98.93 612 E77 -0056 RICHFIELD 911 345396 0056 -6/14 2310.6406 GENERAL SUPPLIES E911 155.02 952 285 -2951 345280 2951 -6/14 1470.6188 TELEPHONE FIRE DEPT. GENERAL 59.63 952944 -6522 345564 6522 -6/14 5511.6188 TELEPHONE ARENA BLDG /GROUNDS 313.58 384025 6126/2014 134417 CHANG, NATALIE 71.00 ART CLASS REFUND 345850 061914 5101.4607 CLASS REGISTRATION ART CENTER REVENUES 71.00 384026 6/2612014 100685 CITY OF EDEN PRAIRIE 150.00 CL PERFORMANCE 7 /07/14 345381 060114 5760.6136 PROFESSIONAL SVC -OTHER CENTENNIAL LAKES ADMIN EXPENSE 150.00 384027 6/2612014 122084 CITY OF EDINA - UTILITIES 89.78 00102561 - 0112920000 345565 112920000 -6/14 5841.6189 SEWER & WATER YORK OCCUPANCY 361.88 00113667- 0120835016 345851 120835016 -6/14 5111.6189 SEWER & WATER ART CENTER BLDG /MAINT 51.56 00103650 - 0155251008 345828 155251008 -6/14 7411.6189 SEWER & WATER PSTF OCCUPANCY 503.22 384028 6/26/2014 103040 CITY PAGES 291.66 MAGAZINE ADVERTISING 345397 D10073352 5862.6122 ADVERTISING OTHER VERNON SELLING 291.67 MAGAZINE ADVERTISING _ 345397 D10073352 5822.6122 ADVERTISING OTHER 50TH ST SELLING 291.67 MAGAZINE ADVERTISING 345397 D10073352 5842.6122 ADVERTISING OTHER YORK SELLING 875.00 R55CKR2 LOGIS101 115.77 CITY OF EDINA VERNON SELLING COST OF GOODS SOLD BEER YORK SELLING Council Check Register by GL 384030 6/26/2014 100692 COCA -COLA REFRESHMENTS Council Check Register by Invoice & Summary 6/26/2014 - 6/26/2014 433.82 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 384028 6/2612014 103040 CITY PAGES 433.82 Continued... 384029 6/26/2014 134403 CLAFLIN, CRAIG 384031 6126/2014 115.77 IRRIGATION REPAIRS 345399 REIMBURSEMENT 5913.6180 CONTRACTED REPAIRS 384035 6/26/2014 80.41 99.40 78.01 257.82 384036 6/26/2014 809.00 809.00 100720 DEN NYS 5TH AVE. BAKERY BAKERY BAKERY 101766 DISPLAY SALES PROMENADE FLAGS 6/24/2014 8:01:11 Page- 6 Business Unit DISTRIBUTION COST OF GOODS SOLD MIX YORK SELLING PROFESSIONAL SERVICES YORK OCCUPANCY PROFESSIONAL SERVICES CITY HALL GENERAL TELEPHONE GOLF DOME PROGRAM ADVERTISING OTHER VERNON SELLING ADVERTISING OTHER 50TH ST SELLING ADVERTISING OTHER YORK SELLING COST OF GOODS SOLD BEER 115.77 COST OF GOODS SOLD MIX VERNON SELLING COST OF GOODS SOLD BEER YORK SELLING COST OF GOODS SOLD MIX 384030 6/26/2014 100692 COCA -COLA REFRESHMENTS 433.82 345470 0198321921 5842.5515 433.82 384031 6126/2014 129820 COLLIERS INTERNATIONAL 825.99 JULY 2014 MAINTENANCE 345398 061914 5841.6103 825.99 384032 6/2612014 120433 COMCAST 24.83 8772 10 614 0023973 345566 23973 -6/14 1551.6103 170.14 8772 10 614 0496856 345281 496856 -6/14 5210.6188 194.97 384033 6/26/2014 120826 COMCAST SPOTLIGHT 816.61 CABLE TV ADVERTISING 345282 CUST 9630 -5/14 5862.6122 816.62 CABLE TV ADVERTISING 345282 CUST 9630 -5/14 5822.6122 816.62 CABLE TV ADVERTISING 345282 CUST 9630 -5/14 5842.6122 2,449.85 384034 6/26/2014 102478 DAY DISTRIBUTING CO. 1,160.93 345472 756721 5862.5514 70.70 345471 7567222 5862.5515 2,309.70 345473 756724 5842.5514 72.60 345474 756725 5842.5515 384035 6/26/2014 80.41 99.40 78.01 257.82 384036 6/26/2014 809.00 809.00 100720 DEN NYS 5TH AVE. BAKERY BAKERY BAKERY 101766 DISPLAY SALES PROMENADE FLAGS 6/24/2014 8:01:11 Page- 6 Business Unit DISTRIBUTION COST OF GOODS SOLD MIX YORK SELLING PROFESSIONAL SERVICES YORK OCCUPANCY PROFESSIONAL SERVICES CITY HALL GENERAL TELEPHONE GOLF DOME PROGRAM ADVERTISING OTHER VERNON SELLING ADVERTISING OTHER 50TH ST SELLING ADVERTISING OTHER YORK SELLING COST OF GOODS SOLD BEER VERNON SELLING COST OF GOODS SOLD MIX VERNON SELLING COST OF GOODS SOLD BEER YORK SELLING COST OF GOODS SOLD MIX YORK SELLING 345283 509386 5421.5510 COST OF GOODS SOLD 345284 509794 5421.5510 COST OF GOODS SOLD 345852 510195 5421,5510 COST OF GOODS SOLD 345285 INVO096339 5765.6406 GENERALSUPPLIES GRILL GRILL GRILL PROMENADE EXPENSES R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/26/2014 — 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 384036 6126/2014 101766 DISPLAY SALES Continued... 384037 612612014 101747 DRESSER TRAP ROCK INC. 6,493.96 FA2 345286 85872 1314.6517 SAND GRAVEL & ROCK 3,252.04 FA2 345287 85926 1314.6517 SAND GRAVEL & ROCK 9,746.00 384038 6/26/2014 124503 EDEN PRAIRIE WINLECTRIC CO. 338.15 LIGHTING PARTS 00001213 345288 10948300 5761.6530 REPAIR PARTS 338.15 384039 6/26/2014 100744 EDINA CHAMBER OF COMMERCE 360.00 TASTE OF EDINA 345289 TICKET SALES 5822.6122 ADVERTISING OTHER 2,040.00 TASTE OF EDINA 345289 TICKET SALES 5862.6122 ADVERTISING OTHER 3,090.00 TASTE OF EDINA 345289 TICKET SALES 5842.6122 ADVERTISING OTHER 5,490.00 384040 6/26/2014 101837 EDINA POLICE DEPARTMENT 302.00 MUSIC IN THE PARK EVENT 345853 EDP14 -20 2611.6102 CONTRACTUAL SERVICES 302.00 384041 6/26/2014 134409 EFRON, DORIS 109.08 UTILITY OVERPAYMENT REFUND 345854 6208 ORIOLE 5900.2015 CUSTOMER REFUND LANE 109.08 384042 6/26/2014 118010 EGAN, BILL 675.00 BEAVER REMOVAL 00001157 345400 061414 5932.6103 PROFESSIONAL SERVICES 675.00 384043 6/26/2014 134400 EGGEMEYER, MARIA 45.00 ART CENTER CLASS REFUND 345401 061714 5101.4607 CLASS REGISTRATION 45.00 384044 6/2612014 100049 EHLERS 150.00 TIF REPORTING PREP 345567 348287 9232.6103 PROFESSIONAL SERVICES 150.00 384045 6/26/2014 101956 EMERGENCY APPARATUS MAINTENANCE 265.00 E 81 PUMP TEST 345405 73640 1470.6215 EQUIPMENT MAINTENANCE 265.00 E 82 PUMP TEST 345404 73641 1470.6215 EQUIPMENT MAINTENANCE 6124/2014 8:01:11 Page- 7 Business Unit STREET RENOVATION STREET RENOVATION CENTENNIAL LAKES OPERATING 50TH ST SELLING VERNON SELLING YORK SELLING MUSIC IN EDINA UTILITY BALANCE SHEET GENERAL STORM SEWER ART CENTER REVENUES CENTENNIAL TIF DISTRICT FIRE DEPT. GENERAL FIRE DEPT. GENERAL R55CKR2 LOGIS101 CITY OF EDINA 6/24/2014 8:01:11 Council Check Register by GL Page - 8 Council Check Register by Invoice & Summary 6/26/2014 — 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 364046 6/26/2014 101966 EMERGENCY APPARATUS MAINTENANCE Continued... 265.00 E 83 PUMP TEST 345403 73642 1470.6215 EQUIPMENT MAINTENANCE FIRE DEPT. GENERAL 2,289.55 T -90 PUMP TEST 345402 73643 1470.6215 EQUIPMENT MAINTENANCE FIRE DEPT. GENERAL 3,084.55 384046 6/26/2014 104195 EXTREME BEVERAGE LLC. 335.00 345475 \1-975837 5842.5515 COST OF GOODS SOLD MIX YORK SELLING 335.00 384047 6/2612014 100146 FACTORY MOTOR PARTS COMPANY 49.44 SUPER DUTY PADS 345292 1- 4462145 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 24.03 RESISTOR ASSEMBLY 345293 69- 141292 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 120.32 ROTORS, PADS 345291 69- 141515 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 152.83 HUB ASSEMBLY 345290 69- 141531 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 346.62 384046 6/26/2014 100297 FAST FOTO & DIGITAL 6.44 T2- 336157 INTERN PHOTO 345568 8326063 1120.6406 GENERALSUPPLIES ADMINISTRATION 6.44 384049 6/26/2014 134398 FAULHABER, MELANIE 83.00 CLASS REFUND 345406 061314 5101.4607 CLASS REGISTRATION ART CENTER REVENUES 83.00 384050 6/2612014 126004 FERGUSON WATERWORKS 7,191.47 METERS, PARTS 00001152 345294 0064975 5917.6530 REPAIR PARTS METER REPAIR 7,191.47 384051 6/26/2014 133257 FILBIN, SUSAN 18.00 REIMBURSE CLASS SUPPLIES 345855 062014 5110.6103 PROFESSIONAL SERVICES ART CENTER ADMINISTRATION 18.00 384052 6/2612014 134405 FOSTER, TRISH 172.00 TENNIS PROGRAM REFUND 345569 REFUND 1600.4390.02 TENNIS PROGRAM PARK ADMIN. GENERAL 172.00 384053 6/2612014 134414 FREIBERG, KAYE 84.00 ART CLASS REFUND 345856 062014 5101.4607 CLASS REGISTRATION ART CENTER REVENUES 84.00 384054 61261^"14 134005 GEOGRAPHIC TECHNOLOGIES GROUP R55CKR2 LOGIS101 345476 168155 5842.5513 CITY OF EDINA YORK SELLING 714.00 6/24/2014 8:01:11 345477 168246 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING Council Check Register by GL Page- 9 Council Check Register by Invoice & Summary 157.35 TRAFFIC LOOP WIRE 00001267 6126/2014 - 6/26/2014 973053440 1330.6215 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 384064 6126/2014 134406 GREAT LAKES LLC 134006 GEOGRAPHIC TECHNOLOGIES GROUP Continued... PLAYGROUND STAFF SHIRTS 345574 7,000.00 GIS NEEDS ASSESSMENT GENERALSUPPLIES 345570 G20 -11119 1500.6103 PROFESSIONAL SERVICES CONTINGENCIES 7,000.00 384055 6/26/2014 103186 GERTENS 64.71 PLANTS 00001303 345295 316378/1 1644.6541 PLANTINGS & TREES TREES & MAINTENANCE 113.29 SHRUBS 00001317 345571 317092/1 1644.6541 PLANTINGS & TREES TREES & MAINTENANCE 178.00 384056 6/26/2014 101103 GRAINGER 31.78 V -BELTS 00001240 345411 9457565652 5421.6406 GENERALSUPPLIES GRILL 200.00 NITRILE GLOVES 00006253 345410 9458627891 5422.6406 GENERALSUPPLIES MAINT OF COURSE & GROUNDS 135.36 THERMOSTAT 00001244 345412 9459140829 5420.6530 REPAIR PARTS CLUB HOUSE 699.60 NITRILE GLOVES 00001261 345296 9459832615 1646.6406 GENERALSUPPLIES BUILDING MAINTENANCE 18.16 PRESSURE GAUGE 00006253 345409 9459832623 5422.6611 IRRIGATION EQUIPMENT MAINT OF COURSE & GROUNDS 135.84 EAR MUFFS 00001268 345297 9461360357 1646.6610 SAFETY EQUIPMENT BUILDING MAINTENANCE 11.67 SAFETY GLASSES 00005553 345302 9461504723 1301.6610 SAFETY EQUIPMENT GENERAL MAINTENANCE 65.60 COUPLER PLUGS 00005305 345300 9461786296 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 18.83 CAPACITOR 00001242 345303 9462440844 5932.6406 GENERALSUPPLIES GENERAL STORM SEWER 97.80 WELDING MASKS 00005330 345299 9462440851 1553.6580 WELDING SUPPLIES EQUIPMENT OPERATION GEN 482.15 OUTLET BOXES 00005309 345301 9463137407 1553.6406 GENERALSUPPLIES EQUIPMENT OPERATION GEN 51.30 LIGHT BULBS 00006327 345408 9463783259 5421.6406 GENERALSUPPLIES GRILL 50.24 EAR PLUGS, GLOVES 00005331 345298 9463945064 1553.6610 SAFETY EQUIPMENT EQUIPMENT OPERATION GEN 200.00 EAR PLUGS, GLOVES 00005331 345298 9463945064 1301.6610 SAFETY EQUIPMENT GENERAL MAINTENANCE 45.48 WHEELS FOR HAND CART 00001294 345407 9465572148 5841.6530 REPAIR PARTS YORK OCCUPANCY 45.84 TOOLS 345829 9469597836 7411.6406 GENERALSUPPLIES PSTF OCCUPANCY 2,289.65 384057 6/2612014 102217 GRAPE BEGINNINGS INC 180.50 345476 168155 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 714.00 345477 168246 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 894.50 384058 6126/2014 100783 GRAYBAR ELECTRIC CO. INC. 157.35 TRAFFIC LOOP WIRE 00001267 345304 973053440 1330.6215 EQUIPMENT MAINTENANCE TRAFFIC SIGNALS 157.35 384059 6/26/2014 134406 GREAT LAKES LLC 3,516.00 PLAYGROUND STAFF SHIRTS 345574 536524 1624.6406 GENERALSUPPLIES PLAYGROUND & THEATER 3,516.00 R55CKR2 LOGIS101 CITY OF EDINA 6/24/2014 8:01:11 Council Check Register by GL Page- 10 Council Check Register by Invoice & Summary 6/26/2014 — 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 384060 6/2612014 101360 GREEN ACRES SPRINKLER CO. Continued... 243.90 IRRIGATION REPAIRS 345413 141791 1470.6160 CONTRACTED REPAIRS FIRE DEPT. GENERAL 243.90 384061 6/26/2014 100785 GREUPNER, JOE 10,511.00 CREDIT CARD GROUP LESSONS 345857 061914 5401.4602 LESSONS GOLF REVENUES 4,433.00 CREDIT CARD GOLF LESSONS 345858 062014 5401.4602 LESSONS GOLF REVENUES 14,944.00 384062 6/2612014 106539 GREYSTONE CONSTRUCTION CO. 3,539.10 GRANDVIEW REMODEL 345575 24390 5862.6406 GENERAL SUPPLIES VERNON SELLING 3,539.10 384063 6/26/2014 134391 GRIMES, LAURYN 63.84 MILEAGE REIMBURSEMENT 345414 061614 1130.6107 MILEAGE OR ALLOWANCE COMMUNICATIONS 63.84 384064 6/26/2014 100788 H &L MESABI 8,701.80 PLOW BLADES 00005283 345576 91025 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 6,701.80 384065 6/26/2014 129108 HAAG COMPANIES INC. 81.00 345305 053114 1552.6406 GENERAL SUPPLIES CENT SVC PW BUILDING 129.46 345305 053114 1318.6406 GENERAL SUPPLIES SNOW & ICE REMOVAL 135.00 345305 053114 1643.6543 SOD & BLACK DIRT GENERAL TURF CARE 170.00- 345305 053114 5511.6406 GENERALSUPPLIES ARENA BLDG /GROUNDS 1,371.00 345305 053114 5765.6540 FERTILIZER PROMENADE EXPENSES 1,410.58 345305 053114 5761.6540 FERTILIZER CENTENNIAL LAKES OPERATING 413.64 345305 053114 5913.6543 SOD & BLACK DIRT DISTRIBUTION 3,370.68 384066 6/2612014 100797 HAWKINS INC. 148.91 CHEMICAL 00001246 345306 3605440 5915.6586 WATER TREATMENT SUPPLIES WATER TREATMENT 148.91 384067 6126/2014 100799 HEDBERG SUPPLY 303.96 PUMP 00006169 345415 362197 5422.6406 GENERAL SUPPLIES MAINT OF COURSE & GROUNDS 303.96 384068 6/2612014 101209 HEIMARK FOODS 177.12 BEEF PATTIES 345307 025199 5421.5510 COST OF GOODS SOLD GRILL R55CKR2 LOGIS101 CITY OF EDINA 6/24/2014 8:01:11 Council Check Register by GL Page - 11 Council Check Register by Invoice & Summary 6/26/2014 — 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 384068 6/26/2014 101209 HEIMARK FOODS Continued... 177.12 345308 025207 5421.5510 COST OF GOODS SOLD GRILL 354.24 384069 6/2612014 128208 HEINZMAN, DAN 12.21 MILEAGE REIMBURSEMENT 286742 042512 5919.6104 CONFERENCES & SCHOOLS TRAINING 12.21 384070 6/2612014 127071 HELMER PRINTING INC. 135.00 EMPLOYEE NEWSLETTER 345577 152500 1130.6575 PRINTING COMMUNICATIONS 135.00 384071 6/26/2014 100801 HENNEPIN COUNTY TREASURER 2,923.50 MAY 2014 ROOM & BOARD 345578 1000046547 1195.6225 BOARD & ROOM PRISONER LEGAL SERVICES 2,923.50 384072 6/26/2014 105436 HENNEPIN COUNTY TREASURER 1,272.00 RADIO FLEET FEE 345417 1000046304 1470.6151 EQUIPMENT RENTAL FIRE DEPT. GENERAL 1,796.70 RADIO FLEET FEE 345416 1000046305 1400.6230 SERVICE CONTRACTS EQUIPMENT POLICE DEPT. GENERAL 3,068.70 384073 6126/2014 116680 HEWLETT - PACKARD COMPANY 4,388.09 REPLACEMENT PCS 00004325 345309 54427145 1554.6710 EQUIPMENT REPLACEMENT CENT SERV GEN - MIS 4,388.09 384074 6126/2014 102484 HIRSHFIELD'S PAINT MANUFACTURING 892.50 STRIPING PAINT 00001934 345310 102174 1642.6544 LINE MARKING POWDER FIELD MAINTENANCE 892.50 384075 6/2612014 104375 HOHENSTEINS INC. 1,298.50 345478 707860 5862.5514 COST OF GOODS SOLD BEER VERNON SELLING 2,005.90 345479 708184 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 3,304.40 384076 6126/2014 132938 HOT DISH ADVERTISING LLC 1,395.72 BRANDING SIGNS 345418 21673 5862.6406 GENERAL SUPPLIES VERNON SELLING 1,395.73 BRANDING SIGNS 345418 21673 5842.6406 GENERAL SUPPLIES YORK SELLING 2,791.45 384077 6/26/2014 119808 INTEGRA 27.74 ISP BUNDLE 345830 12097542 7411.6406 GENERALSUPPLIES PSTF OCCUPANCY R55CKR2 LOGIS101 CITY OF EDINA 6/2412014 8:01:11 Council Check Register by GL Page- 12 Council Check Register by Invoice & Summary 6/26/2014 - 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 384077 6/26/2014 119808 INTEGRA Continued... 27.74 384078 6/26/2014 134408 JANCOURT, JAN 10.55 DUPLICATE SEASON PASS 345831 REFUND 5300.2039 SALES & USE TAX PAYABLE AQUATIC CENTER BALANCE SHEET 145.01 DUPLICATE SEASON PASS 345831 REFUND 5301.4532 SEASON TICKETS AQUATIC CENTER REVENUES 155.56 384079 6/26/2014 108618 JEFFERSON FIRE & SAFETY INC. 5,561.25 TURNOUT GEAR 00003765 345419 207311 1470.6552 PROTECTIVE CLOTHING FIRE DEPT. GENERAL 5,561.25 384080 6/26/2014 100828 JERRY'S FOODS 8.49 345311 053114 1628.6406 GENERALSUPPLIES SENIOR CITIZENS 10.02 345311 053114 1450.6406 GENERALSUPPLIES ANIMAL CONTROL 18.51 384081 6/2612014 100829 JERRY'S HARDWARE 8.46 345420 052514 1322.6406 GENERALSUPPLIES STREET LIGHTING ORNAMENTAL 11.97 345420 052514 1262.6406 GENERALSUPPLIES TRANSPORTATION 45.40 345420 052514 1645.6406 GENERALSUPPLIES LITTER REMOVAL 65.96 345420 052514 1470.6406 GENERALSUPPLIES FIRE DEPT. GENERAL 71.14 345420 052514 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 92.76 345420 052514 1400.6406 GENERALSUPPLIES POLICE DEPT. GENERAL 101.69 345420 052514 1553.6406 GENERALSUPPLIES EQUIPMENT OPERATION GEN 285.83 345420 052514 1646.6406 GENERALSUPPLIES BUILDING MAINTENANCE 415.13 345420 052514 1301.6406 GENERALSUPPLIES GENERAL MAINTENANCE 495.29 345420 052514 1646.6530 REPAIR PARTS BUILDING MAINTENANCE 1,201.11 345420 052514 1552.6406 GENERALSUPPLIES CENT SVC PW BUILDING 23.99 345420 052514 4090.6406 GENERALSUPPLIES 50TH &FRANCE MAINTENANCE 296.88 345420 052514 5311.6406 GENERALSUPPLIES POOL OPERATION 11.18 345420 052514 5430.6406 GENERALSUPPLIES RICHARDS GOLF COURSE 51.66 345420 052514 5511.6406 GENERALSUPPLIES ARENA BLDG /GROUNDS 80.12 345420 052514 5761.6406 GENERALSUPPLIES CENTENNIAL LAKES OPERATING 367.06 345420 052514 5913.6406 GENERALSUPPLIES DISTRIBUTION 3,625.63 384082 6/26/2014 129635 JESSE JAMES CREATIVE INC. 2,062.50 EDINET ON -CALL MODULE 345579 JJ5425 1130.6124 WEB DEVELOPMENT COMMUNICATIONS 3,000.00 EDINET LDAP INTEGRATION 345580 JJ5463 1130.6124 WEB DEVELOPMENT COMMUNICATIONS 5,062.50 R55CKR2 LOGIS101 Check # Date Amount Supplier / Explanation PO # 384082 6/26/2014 129636 JESSE JAMES CREATIVE INC. 384083 6126/2014 121076 JIMMY'S JOHNNYS INC. 51.50 TOILET RENTAL 51.50 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/26/2014 - 6/26/2014 Doc No Inv No Account No 345312 76417 1645.6182 Subledger Account Description Continued... RUBBISH REMOVAL 6/24/2014 8:01:11 Page- 13 Business Unit LITTER REMOVAL 384084 6/2612014 100741 JJ TAYLOR DIST. OF MINN 2,683.45 345484 2225472 5822.5514 COST OF GOODS SOLD BEER 50TH ST SELLING 17.55 345483 2225511 5822.5515 COST OF GOODS SOLD MIX 50TH ST SELLING 57.55- 345485 2225515 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 9,175.70 345482 2225516 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 95.40 345481 2225519 5842.5515 COST OF GOODS SOLD MIX YORK SELLING 90.00 345480 2225520 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 334.60 345859 2237669 5421.5514 COST OF GOODS SOLD BEER GRILL 12,339.15 384085 6/26/2014 124104 JOHN DEERE LANDSCAPES INC. 233.09 CLAMPS, BACKPACK, PITCHER 345313 68321325 1314.6406 GENERALSUPPLIES STREET RENOVATION 150.00 GYPSUM PELLETS 00001245 345315 68421577 1643.6540 FERTILIZER GENERAL TURF CARE 95.56 ROUNDUP 00001245 345314 68421680 1643.6406 GENERALSUPPLIES GENERAL TURF CARE 382.24 ROUNDUP 00001262 345316 68442648 1643.6406 GENERALSUPPLIES GENERAL TURF CARE 70.07 IRRIGATON REPAIR 00001265 345317 68445031 47085.6710 EQUIPMENT REPLACEMENT GARDEN PK BASEBALL FIELD 103.77 IRRIGATION REPAIR PARTS 00001271 345318 68471070 1642.6406 GENERALSUPPLIES FIELD MAINTENANCE 37.20 VALVES 00001283 345321 68504403 1642.6406 GENERALSUPPLIES FIELD MAINTENANCE 323.33 FERTILIZER 00006176 345421 68515786 5422.6540 FERTILIZER MAINT OF COURSE & GROUNDS 113.80 IRRIGATION REPAIR PARTS 00001290 345320 68516132 1642.6406 GENERALSUPPLIES FIELD MAINTENANCE 3.20 COUPLINGS 00001290 345319 68517899 1646.6406 GENERALSUPPLIES BUILDING MAINTENANCE 1,512.26 384087 6/26/2014 100835 JOHNSON BROTHERS LIQUOR CO. 203.39 345487 1872897 5822.5512 COST OF GOODS SOLD LIQUOR 50TH ST SELLING 2.80 345891 1872902 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 2,172.10 345489 1872905 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 203.39 345486 1872915 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 60.08 345488 1873460 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 358.85 345495 1878590 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 4,091.68 345886 1878591 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 3,253.42 345888 1878596 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 797.11 345881 1878597 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 2,752.27 345492 1878598 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 20.99 345493 1878599 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING R55CKR2 LOGIS101 CITY OF EDINA 6124/2014 8:01:11 Council Check Register by GL Page - 14 Council Check Register by Invoice & Summary 6/26/2014 - 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 384087 6/2612014 100835 JOHNSON BROTHERS LIQUOR CO. Continued... 263.35 345498 1878600 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 1.12 345491 1878601 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 2,722.13 345887 1878608 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 2,303.52 345882 1878609 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 3,279.61 345883 1878610 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 1,522.22 345889 1878611 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 123.00 345890 1878612 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 2,352.78 345884 1878613 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 98.11 345885 1878614 5842.5515 COST OF GOODS SOLD MIX YORK SELLING 4,584.60 345494 1878615 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 2,104.91 345497 1878616 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 1,094.86 345490 1878617 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 720.72 345496 1878619 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 130.60 345499 1878620 5862.5515 COST OF GOODS SOLD MIX VERNON SELLING 9.07- 345505 611092 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 65.84- 345503 614470 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 16.46- 345896 614471 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 69.84- 345504 615522 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 18.83- 345892 621383 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 10.67- 345501 621384 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 12.41- 345502 621385 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 67,79- 345895 622005 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 7.33- 345894 622006 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 14.81- 345500 622007 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 24.00- 345893 622555 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 34,900.56' 384088 6/2612014 102113 JOHNSTONE SUPPLY 269.00 REFRIGERANT 00001278 345322 056643 5912.6406 GENERAL SUPPLIES WELL HOUSES 13.17 SEALANT 00001289 345832 056965 1470.6530 REPAIR PARTS FIRE DEPT. GENERAL 282.17 384089 6/26/2014 102603 JONAS, LENORE 60.42 SUPPLIES REIMBURSEMENT 345846 062014 5110.6406 GENERALSUPPLIES ART CENTER ADMINISTRATION 60.42 384090 6/2612014 134410 KIRCHNER, CATHERINE 220.00 PROGRAM CANCELLATION 345860 REFUND 5401.4593 GREEN FEES EXEC COURSE GOLF REVENUES 220.00 R55CKR2 LOGIS101 CITY OF EDINA 6/24/2014 6:01:11 Council Check Register by GL Page- 15 Council Check Register by Invoice & Summary 6/26/2014 - 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 384091 6/26/2014 134396 KROHN, LISA Continued... 149.00 JR LEAGUE GOLF CANCELLATION 345422 REFUND 5401.4592 GREEN FEES NINE HOLES GOLF REVENUES 149.00 384092 6/26/2014 120982 KROOG, RACHEL 200.00 CL PERFORMANCE 7/10/14 345385 060114 5760.6136 PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE 200.00 384093 6/26/2014 133469 KRUEGER, JASON 19.26 MILEAGE REIMBURSEMENT 345581 061614 1624.6107 MILEAGE OR ALLOWANCE PLAYGROUND & THEATER 19.26 384094 6126/2014 134402 LOEWEN, DANIELLE 64.37 PARKING PERMIT REFUND 345423 061714 4090.4751 PARKING PERMITS 50TH &FRANCE MAINTENANCE 64.37 384095 6126/2014 101792 LUBE -TECH 1,277.03 GREASE, OIL 00006163 345424 2383463 5422.6406 GENERAL SUPPLIES MAINT OF COURSE & GROUNDS 903.99 GREASE 00005038 345323 2364878 1553.6584 LUBRICANTS EQUIPMENT OPERATION GEN 2,181.02 384096 6/2612014 100443 LUCHT, PETE 112.89 UNIFORM PURCHASE 345582 061914 5913.6201 LAUNDRY DISTRIBUTION 112.89 384097 612612014 134395 MAHAJAN, ISHA 64.00 SPORTS OF ALL SORTS 345425 REFUNDS 1600.4390.03 FAB 4 & 5 PARKADMIN. GENERAL 90.00 FAB 4 & 5 345425 REFUNDS 1600.4390.03 FAB 4 & 5 PARK ADMIN. GENERAL 154.00 384098 612612014 134401 MAHLUM, KATIE 69.00 HIGHLAND EXPLORERS PROGRAM 345426 REFUND 1600.4390.29 HIGHLANDS EXPLORERS PARKADMIN. GENERAL 69.00 384099 6/26/2014 117804 MALLOY MONTAGUE KARNOWSKI 4,100.00 2013AUDIT 345427 35878 1160.6130 PROFESSIONALSERV -AUDIT FINANCE 500.00 2013AUDIT 345427 35878 5110.6130 PROFESSIONAL SERV -AUDIT ART CENTER ADMINISTRATION 500.00 2013AUDIT 345427 35878 5210.6130 PROFESSIONALSERV -AUDIT GOLF DOME PROGRAM 1,600.00 2013AUDIT 345427 35878 5410.6130 PROFESSIONAL SERV -AUDIT GOLF ADMINISTRATION 800.00 2013AUDIT 345427 35878 5710.6130 PROFESSIONALSERV -AUDIT EDINBOROUGH ADMINISTRATION 800.00 2013AUDIT 345427 35878 5760.6130 PROFESSIONALSERV -AUDIT CENTENNIAL LAKES ADMIN EXPENSE R55CKR2 LOGIS101 CITY OF EDINA 6/24/2014 8:01:11 Council Check Register by GL Page - 16 Council Check Register by Invoice & Summary 6/26/2014 - 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subiedger Account Description Business Unit 384099 6/2612014 117804 MALLOY MONTAGUE KARNOWSKI Continued... 6,300.00 384100 6/26/2014 134063 MANSFIELD OIL COMPANY 19,703.27 UNLEADED FUEL 00005306 345583 669239 1553.6581 GASOLINE EQUIPMENT OPERATION GEN 1 9,703.27 384101 6/26/2014 122554 MATHESON TRI -GAS INC. 315.37 OXYGEN 00003649 345833 09365903 1470.6510 FIRSTAID SUPPLIES FIRE DEPT. GENERAL 315.37 384102 6126/2014 101254 MCCORMICK, CAROL 150.00 CL PERFORMANCE 7/01/14 345376 060114 5760.6136 PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE 150.00 384103 6/26/2014 113941 MEDICA 1,302.16 AMBULANCE OVERPAYMENT REFUND 345428 ADYSON HACKEL 1470.4329 AMBULANCE FEES FIRE DEPT. GENERAL 1,302.16 384104 6/26/2014 101483 MENARDS 21.45 PATCH CEMENT, NITRILE GLOVES 00001011 345584 55102 1646.6530 REPAIR PARTS BUILDING MAINTENANCE 113.90- RETURN 00001202 345328 58684 1646.6406 GENERAL SUPPLIES BUILDING MAINTENANCE 19.72 GUTTER SCREEN, SHIFTER INSERTM)001286 345326 58903 1322.6406 GENERAL SUPPLIES STREET LIGHTING ORNAMENTAL 96.29 CEDAR, CONCRETE MIX 00001296 345324 59089 1646.6577 LUMBER BUILDING MAINTENANCE 20.37 BRASS SHUT OFF, NOZZLE 00001298 345430 59095 1301.6556 TOOLS GENERAL MAINTENANCE 74.68 SOCKET SET, WRENCH SET 00001298 345325 59100 1646.6556 TOOLS BUILDING MAINTENANCE 267.00 COPPER WIRE 00001302 345327 59197 1375.6406 GENERAL SUPPLIES PARKING RAMP 22.94 GUTTER INSERTS, FILTERS 00001306 345429 59345 1330.6406 GENERAL SUPPLIES TRAFFIC SIGNALS 122.71 PRUNERS, SHOVELS 00001303 345585 59431 1643.6556 TOOLS GENERAL TURF CARE 531.26 384105 6/2612014 100886 METROPOLITAN COUNCIL 38,595.25 MAY 2014 SAC 345329 061314 1495.4307 SAC CHARGES INSPECTIONS 38,595.25 384106 6/26/2014 102729 METROPOLITAN FORD OF EDEN PRAIRIE 12.72 PADS 00005406 345431 489490 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 12.72 384107 6/2612014 134387 MIDWEST MAILING SYSTEMS INC. 157.07 PAMELA PARK MAILING 345330 73578 1120.6575 PRINTING ADMINISTRATI -'' R55CKR2 LOGIS101 CITY OF EDINA 6/24/2014 8:01:11 Council Check Register by GL Page- 17 Council Check Register by Invoice & Summary 6/26/2014 — 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 384107 6/2612014 134387 MIDWEST MAILING SYSTEMS INC. Continued... 157.07 384108 612612014 100522 MINNESOTA AIR INC. 81.06 BLOWER WHEEL, V -BELTS 00001232 345331 1383180 -00 1646.6530 REPAIR PARTS BUILDING MAINTENANCE 81.06 384109 6/26/2014 120301 MINNESOTA MULCH & SOIL 865.69 MULCH 345432 D20155 5422.6541 PLANTINGS & TREES MAINT OF COURSE & GROUNDS 865.69 384110 6/26/2014 112908 MINNESOTA ROADWAYS CO. 917.00 ASPHALT EMULSION 345332 70741 1314.6519 ROAD OIL STREET RENOVATION 917.00 384111 6/26/2014 100908 MINNESOTA WANNER CO. 1.80 CAM GASKETS 00005386 345333 0105186 -IN 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 1.80 384112 612612014 128914 MINUTEMAN PRESS 131.00 BRAEMAR GOLF BROCHURES 345335 15622 5410.6575 PRINTING GOLF ADMINISTRATION 447.99 P -23 FLYERS 345334 15649 44012.1705.20 CONSULTING DESIGN P23 50TH &FR PARKING &WAYFINDING 578.99 384113 6/26/2014 122249 MN APA 25.00 JOB POSTING AD 345861 062014 1140.6103 PROFESSIONAL SERVICES PLANNING 25.00 384114 6/26/2014 108668 MORRIS, GRAYLYN 200.00 CL PERFORMANCE 7/03/14 345378 060114 5760.6136 PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE 200.00 384115 6/26/2014 103056 NELSON AUTO CENTER 14,825.88 2014 FORD FOCUS 00004041 345435 F4664 421190.6710 EQUIPMENT REPLACEMENT ASSESSING EQUIPMENT 14,825.88 384116 6/26/2014 131649 NEOPOST GREAT PLAINS 238.00 INK CARTRIDGES -POST MACHINE 345586 G[AR24211 1550.6235 POSTAGE CENTRAL SERVICES GENERAL 238.00 384117 6/26/2014 100076 NEW FRANCE WINE CO. R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/26/2014 - 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subiedger Account Description 384117 6/2612014 100076 NEW FRANCE WINE CO. Continued... 764.00 345506 91304 5862.5513 COST OF GOODS SOLD WINE 912.50 345507 91305 5842.5513 COST OF GOODS SOLD WINE 384118 6/26/2014 TELEPHONE 122449 NEW LIFE ENTERPRISES INC. TELEPHONE BUILDING MAINTENANCE TELEPHONE CENT SERV GEN - MIS TELEPHONE 25.20 FIREARMS TRAINING BOOKS 345834 6405 7414.6406 25.20 384119 6/26/2014 104350 NIKE USA INC. 759.14 MERCHANDISE 345862 960306101 5440.5511 759.14 384120 6/26/2014 134394 NORDLAND, LISA 62.00 SUPER 6 & 7 PROGRAM 345436 REFUND 1600.4390.27 62.00 384121 6126/2014 100933 NORTHWEST GRAPHIC SUPPLY CO. 188.73 AQUARIUS W/C PAPER 00009325 345863 45580801 5110.6564 298.75 ART SUPPLIES 00009340 345337 45997600 5110.6564 88.85 ART SUPPLIES 00009340 345338 46005100 5110.6564 576.33 384122 6126/2014 132050 NWHSU 275.00 CANCELLATION DUE TO FLOODING 345864 REUFND 5401.4553 275.00 384123 612612014 105901 OERTEL ARCHITECTS 3,845.00 CONSULTING SERVICES 345835 ARCHITECT 7410.6103 3,845.00 384124 6/2612014 103578 OFFICE DEPOT 162.88 THERMAL PAPER 345339 715681183001 5410.6513 162.88 384125 6/26/2014 102712 OFFICE OF ENTERPRISE TECHNOLOGY 24.69 345844 W14050652 1646.6188 24.69 345844 W14050652 1554.6188 49.38 345844 W14050662 1646.6188 74.07 345844 W14050652 1554.6188 74.07 345844 W14050652 1481.6188 GENERALSUPPLIES 6/24/2014 8:01:11 Page - 18 Business Unit VERNON SELLING YORK SELLING PUBLIC PROGRAMS COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES SUPER 6 & 7 PROGRAM PARKADMIN. GENERAL CRAFT SUPPLIES ART CENTER ADMINISTRATION CRAFT SUPPLIES ART CENTER ADMINISTRATION CRAFT SUPPLIES ART CENTER ADMINISTRATION CLUBHOUSE GOLF REVENUES PROFESSIONAL SERVICES PSTF ADMINISTRATION OFFICE SUPPLIES GOLF ADMINISTRATION TELEPHONE BUILDING MAINTENANCE TELEPHONE CENT SERV GEN - MIS TELEPHONE BUILDING MAINTENANCE TELEPHONE CENT SERV GEN - MIS TELEPHONE YORK FIRE ST -ON R55CKR2 LOGIS101 YORK SELLING COST OF GOODS SOLD LIQUOR YORK SELLING CITY OF EDINA VERNON SELLING COST OF GOODS SOLD WINE VERNON SELLING COST OF GOODS SOLD WINE Council Check Register by GL YORK SELLING COST OF GOODS SOLD LIQUOR VERNON SELLING Council Check Register by Invoice & Summary 6/26/2014 - 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No 384125 6/2612014 102712 OFFICE OF ENTERPRISE TECHNOLOGY 172.83 345844 W14050652 1646.6188 222.21 345844 W14050652 1622.6188 49.38 345844 W14050652 5111.6188 24.69 345844 W14050652 5311.6188 98.76 345844 W14050652 5410.6188 111.10 345844 W14050652 5710.6186 111.11 345844 W14050652 5760.6188 49.38 345844 W14050652 5821.6188 74.07 345844 W14060652 5841.6188 74.07 345844 W14050652 5861.6188 49.38 345844 W14050652 5913.6188 262.77 345845 W14050657 5420.6188 1,546.65 384126 6/26/2014 129485 PAPCO INC. 39.05 HAND TOWELS 345837 86416 7411.6511 119.25 TISSUE, RESTROOM CLEANER 345836 86471 7411.6511 158.30 384127 6/26/2014 133335 PASSAGES DESIGN & BUILD LLC 2,500.00 6204 HILLSIDE RD 345865 ED130968 1495.4109 2,500.00 384128 6126/2014 100347 PAUSTIS WINE COMPANY 166.25 345511 8452810 -IN 5842.5512 153.25 345512 8452837 -IN 5842.5512 153.25 345513 8452838 -IN 5862.5512 5,772.30 345509 6453453 -IN 5862.5513 2,232.97 345510 6453458 -IN 5822.5513 4,824.45 345508 8453462 -IN 5842.5513 134.25 345514 8453481 -IN 5862.5512 13,436.72 384129 6/2612014 100945 PEPSI -COLA COMPANY 1,066.32 345340 00402234 5421.5510 408.60 345897 00544636 5842.5515 1,474.92 384130 6/26/2014 134393 PERCY, SARAH 11.87 RENTAL OVERPAYMENT REFUND 345458 061614 5750.2039 Subledger Account Description Continued... TELEPHONE TELEPHONE TELEPHONE TELEPHONE TELEPHONE TELEPHONE TELEPHONE TELEPHONE TELEPHONE TELEPHONE TELEPHONE TELEPHONE CLEANING SUPPLIES CLEANING SUPPLIES 6/24/2014 8:01:11 Page - 19 Business Unit BUILDING MAINTENANCE SKATING & HOCKEY ART CENTER BLDG /MAINT POOL OPERATION GOLF ADMINISTRATION EDINBOROUGH ADMINISTRATION CENTENNIAL LAKES ADMIN EXPENSE 50TH ST OCCUPANCY YORK OCCUPANCY VERNON OCCUPANCY DISTRIBUTION CLUB HOUSE PSTF OCCUPANCY PSTF OCCUPANCY CONSTRUCTION DEPOSIT INSPECTIONS COST OF GOODS SOLD LIQUOR YORK SELLING COST OF GOODS SOLD LIQUOR YORK SELLING COST OF GOODS SOLD LIQUOR VERNON SELLING COST OF GOODS SOLD WINE VERNON SELLING COST OF GOODS SOLD WINE 50TH ST SELLING COST OF GOODS SOLD WINE YORK SELLING COST OF GOODS SOLD LIQUOR VERNON SELLING COST OF GOODS SOLD GRILL COST OF GOODS SOLD MIX YORK SELLING SALES & USE TAX PAYABLE CENTENNIAL LAKES BALANCE SHEET R55CKR2 LOGIS101 CITY OF EDINA 6/24/2014 8:01:11 Council Check Register by GL Page - 20 Council Check Register by Invoice & Summary 6/26/2014 - 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 384130 6/26/2014 134393 PERCY, SARAH Continued... 163.13 RENTAL OVERPAYMENT REFUND 345458 061614 5751.4555 CENTENNIAL LAKES PARK CENTENNIAL LAKES REVENUE 175.00 384131 6126/2014 134413 PETERSON, PAUL 36.31 EQUIPMENT RENTAL REFUND 345866 062014 2611.6151 EQUIPMENT RENTAL MUSIC IN EDINA 36.31 384132 6/26/2014 100743 PHILLIPS WINE & SPIRITS 1,589.57 345898 2622777 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 3,881.15 345901 2622778 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 825.29 345899 2622779 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 65.12 345900 2622780 5842.5515 COST OF GOODS SOLD MIX YORK SELLING 1,860.81 345517 2622781 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 57.12 345518 2622782 5862.5515 COST OF GOODS SOLD MIX VERNON SELLING 346.93 345516 2622783 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 1,512.28 345515 2622784 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 4.00- 345903 3524613 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 64.00- 345902 3525781 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 7.58- 345522 3526151 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 32.99- 345519 3528473 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 7.00- 345520 3528925 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 22.32- 345521 3528926 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 10,000.38 384133 612612014 134390 PINSONNEAULT, GRETCHEN 20.00 DEFENSIVE DRIVING CLASS 345437 REFUND 1628.4392.09 SENIOR SPECIAL EVENTS SENIOR CITIZENS 20.00 384134 6126/2014 130267 PLASTICS INTERNATIONAL 146.82 CLEAR PLEX GLASS 00002055 345341 250812 5761.6406 GENERAL SUPPLIES CENTENNIAL LAKES OPERATING 146.82 384135 6/26/2014 127773 PREMIER SPECIALTY VEHICLES INC. 276.00 AIR SPRINGS 00005360 345342 3634 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 276.00 384136 6/2612014 100466 R & R PRODUCTS INC. 528.80 ROTARY BLADES 00006172 345438 CD1800009 5431.6530 REPAIR PARTS RICHARDS GC MAINTENANCE 528.80 R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/26/2014 — 6/2612014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 384137 6126/2014 134416 RASMUSSEN, ANIKA Continued... 104.00 ART CLASS REFUND 345867 REFUND 5101.4607 CLASS REGISTRATION 104.00 384138 6/26/2014 104642 RCM SPECIALTIES INC. 965.34 EMULSION 345343 4236 1314.6519 ROAD OIL 965.34 384139 6/26/2014 125936 REINDERS INC. 556.96 HERITAGE 00006173 345439 1492052 -00 5422.6545 CHEMICALS 1,102.63 HERITAGE 00006173 345440 3026670 -00 5422.6545 CHEMICALS 1,659.59 384140 6/26/2014 132858 REUTER WALTON CONSTRUCTION 2,500.00 5121 INDIANOLAAVE 345441 ED131442REFUND 1495.4109 CONSTRUCTION DEPOSIT 2,500.00 384141 6/2612014 129562 RISCHMILLER, KEITH 15.00 UNIFORM PURCHASE 333112 010314 1301.6201 LAUNDRY 15.00 384142 6/26/2014 101000 RJM PRINTING INC. 146.50 BUSINESS CARDS 345344 81696 1550.6406 GENERAL SUPPLIES 146.50 384143 6126/2014 130823 ROTH, MAARJA 1,852.50 ART WORK SOLD 345868 061914 5101.4413 ART WORK SOLD 1,852.50 384144 6/26/2014 129315 ROY, MALLIKA 78.00 ART CENTER CLASS REFUND 345442 REFUND 5101.4607 CLASS REGISTRATION 78.00 384145 6/26/2014 100988 SAFETY KLEEN 421.83 RECYCLE PARTS WASHER 345345 63761747 1553.6530 REPAIR PARTS 421.83 384146 6/2612014 117807 SAM'S CLUB 133.68 7715 0903 0487 2906 345838 COFFEE, CUPS 7411.6406 GENERAL SUPPLIES 133.68 6/24/2014 8:01:11 Page - 21 Business Unit ART CENTER REVENUES STREET RENOVATION MAINT OF COURSE & GROUNDS MAINT OF COURSE & GROUNDS INSPECTIONS GENERAL MAINTENANCE CENTRAL SERVICES GENERAL ART CENTER REVENUES ART CENTER REVENUES EQUIPMENT OPERATION GEN PSTF OCCUPANCY R55CKR2 LOGIS101 CL PERFORMANCE 7/01/14 345375 061614 CITY OF EDINA PROFESSIONAL SVC - OTHER 6/24/2014 8:01:11 150.00 Council Check Register by GL Page - 22 101380 SHAUGHNESSY, SANDRA Council Check Register by Invoice & Summary 26.85 SUPPLIES REIMBURSEMENT 345847 062014 5110.6406 GENERALSUPPLIES 6/26/2014 - 6/26/2014 53.98 SUPPLIES REIMBURSEMENT Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 384147 6/26/2014 GENERAL SUPPLIES 101822 SAM'S CLUB DIRECT 269.54 Continued... 82.70 UTILITY CART 345443 0402373069350 1628.6406 GENERAL SUPPLIES SENIOR CITIZENS 82.70 ACROBAT 00004326 345346 802116866 1170.6160 DATA PROCESSING 384148 6/2612014 118168 SANSIO 384155 6/26/2014 120784 SIGN PRO 50.00 EMS FAXING 345839 INV -16619 -2014 1470.6160 DATA PROCESSING FIRE DEPT. GENERAL GOLF CART LOGOS 345348 772.00 EMS SUBSCRIPTION 345840 INV -16804 -2014 1470.6160 DATA PROCESSING FIRE DEPT. GENERAL 345347 7883 822.00 PRINTING 50TH ST SELLING 213.00 IN STORE MONTHLY SIGNS 345347 384149 6/26/2014 PRINTING 134412 SANTONI, HILARY 213.00 IN STORE MONTHLY SIGNS 345347 7883 5862.6575 PRINTING 275.00 MUSIC IN THE PARK 345869 062014 2611.6103 PROFESSIONAL SERVICES MUSIC IN EDINA 275.00 384150 6/2612014 100990 SCHARBER & SONS 102.84 BLADES, SHIELD 00005384 345588 P49190 1553.6530 REPAIR PARTS EQUIPMENT OPERATION GEN 102.84 384151 6/2612014 105817 SHAKESPEARE IN THE PARK 150.00 CL PERFORMANCE 7 /06/14 345379 060114 5760.6136 PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE 150.00 384152 6/26/2014 103249 SHANNON, JIM 150.00 CL PERFORMANCE 7/01/14 345375 061614 5760.6136 PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE 150.00 384153 6/2612014 101380 SHAUGHNESSY, SANDRA 26.85 SUPPLIES REIMBURSEMENT 345847 062014 5110.6406 GENERALSUPPLIES ART CENTER ADMINISTRATION 53.98 SUPPLIES REIMBURSEMENT 345847 062014 5111.6406 GENERAL SUPPLIES ART CENTER BLDG /MAINT 188.71 SUPPLIES REIMBURSEMENT 345847 062014 5120.6406 GENERAL SUPPLIES ART SUPPLY GIFT GALLERY SHOP 269.54 384154 6126/2014 104098 SHI INTERNATIONAL CORP 269.00 ACROBAT 00004326 345346 802116866 1170.6160 DATA PROCESSING HUMAN RESOURCES 269.00 384155 6/26/2014 120784 SIGN PRO 1,401.60 GOLF CART LOGOS 345348 7829 5410.6406 GENERAL SUPPLIES GOLF ADMINISTRATION 213.00 IN STORE MONTHLY SIGNS 345347 7883 5822.6575 PRINTING 50TH ST SELLING 213.00 IN STORE MONTHLY SIGNS 345347 7883 5842.6575 PRINTING YORK SELLING 213.00 IN STORE MONTHLY SIGNS 345347 7883 5862.6575 PRINTING VERNON SELLING 2,040.60 R55CKR2 LOGIS101 Check # Date Amount Supplier/ Explanation 384165 6/26/2014 120784 SIGN PRO 384156 6/26/2014 100999 SIGNAL SYSTEMS INC. 168.86 TIME CARDS 168.86 384157 6/26/2014 120292 SIGNATURE CONCEPTS 56.00 APPAREL 318.60 APPAREL 384158 612612014 132195 SMALL LOT MN CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/26/2014 - 6/26/2014 PO # Doc No Inv No Account No Subledger Account Description Continued... 345349 13065624 5410.6406 GENERALSUPPLIES 345841 594646/594647/5 7410.6406 94648 345841 594646/594647/5 7410.5510 94648 GENERAL SUPPLIES COST OF GOODS SOLD 6/24/2014 8:01:11 Page - 23 Business Unit GOLF ADMINISTRATION PSTF ADMINISTRATION PSTF ADMINISTRATION 631.50 345523 720 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 631.50 384159 612612014 103339 SMITH- SHARPE FIRE BRICK SUPPLY 525.24 KILN PARTS 345870 121162 5111.6530 REPAIR PARTS ART CENTER BLDG /MAINT 525.24 384160 612612014 127878 SOUTHERN WINE AND SPIRITS 217.00 345527 1172466 5822.5513 COST OF GOODS SOLD WINE 50TH ST SELLING 800.00 345526 1172467 5822.5513 COST OF GOODS SOLD WINE 50TH ST SELLING 2,899.50 345524 1172469 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 4,682.52 345525 1172470 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 2,528.66 345532 1172471 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 161.00 345904 1172472 5842.5513 COST OF GOODS SOLD WINE YORK SELLING 90.41 345531 1172473 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 3,472.50 345528 1172474 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 5,827.54 345530 1172475 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 1,672.84 345529 1172476 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 1,000.00- 345906 9035369 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 500.00- 345906 9035369 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 316.00- 345906 9035369 5822.5512 COST OF GOODS SOLD LIQUOR 50TH ST SELLING 250.00- 345905 9035708 5842.5512 COST OF GOODS SOLD LIQUOR YORK SELLING 20,285.97 384161 6126/2014 129891 SPACK CONSULTING 4,860.00 TRAFFIC /PARKING STUDY 345871 2408 1140.6103 PROFESSIONAL SERVICES PLANNING 4,860.00 R55CKR2 LOGIS101 CITY OF EDINA 6/24/2014 8:01 11 Council Check Register by GL Page- 24 Council Check Register by Invoice & Summary 6/26/2014 - 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 384161 6/2612014 129891 SPACK CONSULTING Continued... 384162 6/26/2014 104672 SPRINT 16.51 345587 873184124 -139 1190.6188 TELEPHONE ASSESSING 24.44 345587 873184124 -139 1553.6188 TELEPHONE EQUIPMENT OPERATION GEN 42.99 345587 873184124 -139 1260.6188 TELEPHONE ENGINEERING GENERAL 49.01 345587 873184124 -139 1140.6188 TELEPHONE PLANNING 63.31 345587 873184124 -139 1552.6188 TELEPHONE CENT SVC PW BUILDING 95.53 345587 873184124 -139 1322.6188 TELEPHONE STREET LIGHTING ORNAMENTAL 115.83 345587 873184124 -139 1280.6188 TELEPHONE SUPERVISION & OVERHEAD 125.97 345587 873184124 -139 1400.6188 TELEPHONE POLICE DEPT. GENERAL 216.80 345587 873184124 -139 1301.6188 TELEPHONE GENERAL MAINTENANCE 319.92 345587 873184124 -139 1470.6151 EQUIPMENT RENTAL FIRE DEPT. GENERAL 393.91 345587 873184124 -139 1640.6188 TELEPHONE PARK MAINTENANCE GENERAL 762.47 345587 873184124 -139 1400.6160 DATA PROCESSING POLICE DEPT. GENERAL 49.27 345587 873184124 -139 4090.6188 TELEPHONE 50TH &FRANCE MAINTENANCE 4.03 345587 873184124 -139 5511.6188 TELEPHONE ARENA BLDG /GROUNDS 521.37 345587 873184124 -139 5910.6188 TELEPHONE GENERAL (BILLING) 37.05 345587 873184124 -139 7411.6188 TELEPHONE PSTF OCCUPANCY 2,838.41 384163 6/26/2014 101004 SPS COMPANIES 6.29 PLUMBING PARTS 00001288 345350 S2919372.001 1646.6530 REPAIR PARTS BUILDING MAINTENANCE 6.29 384164 6126/2014 105136 STANDARD WATER CONTROL SYSTEMS INC. 82.53 PERMIT REFUND 345444 ED131104 1495.4111 BUILDING PERMITS INSPECTIONS 82.53 384165 6/2612014 102170 STAR OF THE NORTH CONCERT BAND 100.00 CL PERFORMANCE 7/02/14 345377 060114 5760.6136 PROFESSIONAL SVC - OTHER CENTENNIAL LAKES ADMIN EXPENSE 100.00 384166 6/26/2014 102390 STRAND MANUFACTURING CO INC 105.00 REPAIR IMPELLER PULLER 00001284 345351 28925 5923.6406 GENERAL SUPPLIES 105.00 384167 6/2612014 101017 SUBURBAN CHEVROLET 106.25 LOCK 00005404 345589 1562744 1553.6530 REPAIR PARTS 106.25 COLLECTION SYSTEMS EQUIPMENT OPERATION GEN R55CKR2 LOGIS101 145.20 CITY OF EDINA 384171 6126/2014 Council Check Register by GL Council Check Register by Invoice & Summary PARTIAL PAYMENT NO. 3 345874 062014 01404.1705.30 CONTRACTOR PAYMENTS 6/26/2014 — 6/26/2014 533,645.15 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 384168 6/26/2014 105874 SUBURBAN TIRE WHOLESALE INC. Continued... 132.00 71.50 TIRE DISPOSAL 00005321 345352 10125834 1553.6583 TIRES & TUBES 340.62 TIRES 00005374 345353 10125848 1553.6583 TIRES & TUBES 384173 196.00 TIRES 00005402 345354 10126086 1553.6583 TIRES & TUBES 608.12 116.00 345355 384169 6/26/2014 COST OF GOODS SOLD BEER 102925 SUPERIOR TECH PRODUCTS 511.90 345356 829210 2,187.46 FERTILIZER 345445 7394 -RGR 5422.6540 FERTILIZER 345533 2,187.46 5862.5515 COST OF GOODS SOLD MIX 384170 612612014 104932 TAYLOR MADE 384174 6/24/2014 8:01:11 Page- 25 Business Unit EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN EQUIPMENT OPERATION GEN MAINT OF COURSE & GROUNDS 145.20 DEMO 345872 22335542 5440.5511 COST OF GOODS - PRO SHOP PRO SHOP RETAIL SALES FRANCEAVE PEDESTRIAN CORRIDOR ART CENTER REVENUES CLUB HOUSE GRILL VERNON SELLING LICENSING, PERMITS & RECORDS EQUIPMENT OPERATION GEN PSTF ADMINISTRATION 145.20 384171 6126/2014 101930 THOMAS & SONS CONSTRUCTION INC 533,645.15 PARTIAL PAYMENT NO. 3 345874 062014 01404.1705.30 CONTRACTOR PAYMENTS 533,645.15 384172 6/26/2014 134416 THOMAS, LINDSEY 132.00 ART CLASS REFUND 345873 062014 5101.4607 CLASS REGISTRATION 132.00 384173 6/26/2014 101035 THORPE DISTRIBUTING COMPANY 116.00 345355 829141 5420.5514 COST OF GOODS SOLD BEER 511.90 345356 829210 5421.5514 COST OF GOODS SOLD BEER 112.00 345533 829784 5862.5515 COST OF GOODS SOLD MIX 739.90 384174 6126/2014 123129 TIMESAVER OFF SITE SECRETARIAL INC. 306.00 6/3/14 COUNCIL MEETING 345357 M20587 1185.6120 ADVERTISING LEGAL 306.00 384175 6/26/2014 101038 TOLL GAS & WELDING SUPPLY 542.94 WELDING SHIELD CAPS 00005304 345590 10028072 1553.6580 WELDING SUPPLIES 542.94 384176 6/26/2014 124763 TOSHIBA FINANCIAL SERVICES 254.70 COPIER USAGE 345842 255325847 7410.6575 PRINTING 254.70 384177 6/2612014 101693 TOTAL REGISTER SYSTEMS FRANCEAVE PEDESTRIAN CORRIDOR ART CENTER REVENUES CLUB HOUSE GRILL VERNON SELLING LICENSING, PERMITS & RECORDS EQUIPMENT OPERATION GEN PSTF ADMINISTRATION R55CKR2 LOGIS101 CITY OF EDINA Council Check Register by GL Council Check Register by Invoice & Summary 6/26/2014 - 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 384177 6/26/2014 101693 TOTAL REGISTER SYSTEMS Continued... 372.99 RECEIPT PRINTER 345591 51798 5842.6406 GENERALSUPPLIES 372.99 384178 6126/2014 116535 TRAVELERS 4,058.50 345359 000462470 1550.6200 INSURANCE 4,382.00 DEDUCTIBLE 345358 000462471 1550.6200 INSURANCE 1,592.50 345360 000462867 1550.6200 INSURANCE 105.00 345361 000462868 1550.6200 INSURANCE 10,138.00 384179 6126/2014 118190 TURFWERKS LLC 347.04 MOWER PARTS 00001310 345592 T123696 1641.6530 REPAIR PARTS 347.04 384180 6126/2014 105243 TUSHIE MONTGOMERY ARCHITECTS 394.65 50TH REMODEL 345363 214032A -2 5820.6103 PROFESSIONAL SERVICES 394.65 384181 6/26/2014 102150 TWIN CITY SEED CO. 564.00 SEED MIXTURE 00001190 345362 32524 1642.6547 SEED 676.25 SEED 00006175 345446 32554 5424.6543 SOD & BLACK DIRT 1,240.25 384182 6/26/2014 100410 USA MOBILITY WIRELESS INC. 128.74 PAGERS 345364 X0319246F 1400.6151 EQUIPMENT RENTAL 126.74 384183 6/26/2014 101058 VAN PAPER CO. 141.73 SOAP, CUP LIDS 345365 313170 -01 5421.6406 GENERAL SUPPLIES 314.47 LIQUOR BAGS 345447 314314 -00 5822.6512 PAPER SUPPLIES 456.20 384184 6/2612014 101063 VERSATILE VEHICLES INC. 117.19 WIRING ASSEMBLIES 00002054 345366 605140028 5761.6530 REPAIR PARTS 31.21 TIMING BELT 00006167 345448 610140019 5423.6530 REPAIR PARTS 148.40 384185 6/26/2014 101066 VIKING ELECTRIC SUPPLY 432.06 KNOCK OUT KIT 00001243 345369 8343132 1301.6556 TOOLS 136.54 TIME CLOCKS 00001243 345367 8343296 1322.6406 GENERAL SUPPLIES 6/24/2014 8:01:11 Page - 26 Business Unit YORK SELLING CENTRAL SERVICES GENERAL CENTRAL SERVICES GENERAL CENTRAL SERVICES GENERAL CENTRAL SERVICES GENERAL MOWING 50TH STREET GENERAL FIELD MAINTENANCE RANGE POLICE DEPT. GENERAL GRILL 50TH ST SELLING CENTENNIAL LAKES OPERATING GOLF CARS GENERAL MAINTENANCE STREET LIGHT -> 7 , ORNAMENTAL R55CKR2 LOGIS101 345535 0101037 -IN 5862.5515 COST OF GOODS SOLD MIX VERNON SELLING 374.38 CITY OF EDINA 97.50 345536 0101039 -IN 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 709.38 YORK SELLING Council Check Register by GL MAPS 00003818 345449 061314 Council Check Register by Invoice & Summary 505.00 6/26/2014 - 6/26/2014 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description 384186 6/2612014 OUT OF COUNTY WARRANT 101066 VIKING ELECTRIC SUPPLY 061914 Continued... 69.27 TIME CLOCKS 00001243 345367 8343296 5420.6406 GENERAL SUPPLIES 384190 37.83 3/4 INCH KO DIE 00001276 345368 8355473 1301.6556 TOOLS 677.70 110.00 JR GOLF PROGRAM CANCELLATION 384186 6/26/2014 REFUND 119454 VINOCOPIA 110.00 6/24/2014 8:01:11 Page - 27 Business Unit CLUB HOUSE GENERAL MAINTENANCE 237.50 345535 0101037 -IN 5862.5515 COST OF GOODS SOLD MIX VERNON SELLING 374.38 345534 0101038 -IN 5862.5512 COST OF GOODS SOLD LIQUOR VERNON SELLING 97.50 345536 0101039 -IN 5862.5513 COST OF GOODS SOLD WINE VERNON SELLING 709.38 YORK SELLING 384187 612612014 102218 VINTAGE ONE WINES INC. 384188 6/26/2014 COST OF GOODS SOLD WINE 105330 WAGNER, KIM COST OF GOODS SOLD WINE YORK SELLING COST OF GOODS SOLD WINE YORK SELLING 505.00 MAPS 00003818 345449 061314 505.00 384189 6/26/2014 133515 WASHINGTON COUNTY COURT ADMIN 32.00 OUT OF COUNTY WARRANT 345593 061914 32.00 384190 6/26/2014 134397 WEBER, MARTY 110.00 JR GOLF PROGRAM CANCELLATION 345450 REFUND 110.00 384191 6/26/2014 131421 WILLEMS, MATTHEW 267.95 BOOTS, SHOES 345451 061614 267.95 384192 612612014 101033 WINE COMPANY, THE 354.30 345539 364373 -00 746.85 345538 364538 -00 384193 6126/2014 101312 WINE MERCHANTS 1,987.91 345540 507761 350.72 345907 507763 2,398.08 345908 507765 965.60 345909 507990 5842.5513 1470.6406 1000.2055 5401.4593 1470.6558 5842.5513 5862.5513 5862.5513 5842.5513 5842.5513 5842.5513 COST OF GOODS SOLD WINE YORK SELLING GENERAL SUPPLIES FIRE DEPT. GENERAL DUE TO OTHER GOVERNMENTS GENERAL FUND BALANCE SHEET GREEN FEES EXEC COURSE GOLF REVENUES DEPT UNIFORMS FIRE DEPT. GENERAL COST OF GOODS SOLD WINE YORK SELLING COST OF GOODS SOLD WINE VERNON SELLING COST OF GOODS SOLD WINE VERNON SELLING COST OF GOODS SOLD WINE YORK SELLING COST OF GOODS SOLD WINE YORK SELLING COST OF GOODS SOLD WINE YORK SELLING R55CKR2 LOGIS101 CITY OF EDINA 6/24/2014 8:01:11 Council Check Register by GL Page- 28 Check # Date Amount Supplier / Explanation PO # 384193 6/26/2014 101312 WINE MERCHANTS 225.00 - 65.12- 5,345.63 384194 6/2612014 134407 WINSON, WILLAIM 3.78 AQUATIC CENTER SEASON PASS 52.00 AQUATIC CENTER SEASON PASS 55.78 384195 6/26/2014 124291 WIRTZ BEVERAGE MINNESOTA 438.45 94.30 3,355.70 6,837.56 179.15 2,540.80 72.54 8,587.61 28.00 - 2.00- 201.00- 270.00- 6.00- 48.00- 490.77- 20,520.22 Council Check Register by Invoice & Summary 124629 WIRTZ BEVERAGE MINNESOTA BEER INC 6/26/2014 - 6/26/2014 Doc No Inv No Account No 345910 64780 5862.5513 345541 65517 5842.5513 345911 65562 5862.5513 345843 REFUND 345843 REFUND 345543 1080178966 345549 1080192937 345544 1080192938 345542 1080192939 345545 1080192940 345546 1080192943 345547 1080193054 345548 1080193055 345553 2080041018 345552 2060041022 345555 2080041027 345551 2080041041 345550 2080041056 345554 2080041059 345556 2080043438 345912 2080044578 5300.2039 5301.4532 5842.5512 5862.5515 5862.5513 5862.5512 5862.5513 5842.5513 5842.5515 5842.5512 5862.5513 5842.5513 5862.5513 5842.5513 5842.5513 5862.5513 5842.5512 5842.5512 Subledger Account Description Continued... COST OF GOODS SOLD WINE COST OF GOODS SOLD WINE COST OF GOODS SOLD WINE SALES & USE TAX PAYABLE SEASON TICKETS COST OF GOODS SOLD LIQUOR COST OF GOODS SOLD MIX COST OF GOODS SOLD WINE COST OF GOODS SOLD LIQUOR COST OF GOODS SOLD WINE COST OF GOODS SOLD WINE COST OF GOODS SOLD MIX COST OF GOODS SOLD LIQUOR COST OF GOODS SOLD WINE COST OF GOODS SOLD WINE COST OF GOODS SOLD WINE COST OF GOODS SOLD WINE COST OF GOODS SOLD WINE COST OF GOODS SOLD WINE COST OF GOODS SOLD LIQUOR COST OF GOODS SOLD LIQUOR Business Unit VERNON SELLING YORK SELLING VERNON SELLING AQUATIC CENTER BALANCE SHEET AQUATIC CENTER REVENUES YORK SELLING VERNON SELLING VERNON SELLING VERNON SELLING VERNON SELLING YORK SELLING YORK SELLING YORK SELLING VERNON SELLING YORK SELLING VERNON SELLING YORK SELLING YORK SELLING VERNON SELLING YORK SELLING YORK SELLING 384196 6/26/2014 124629 WIRTZ BEVERAGE MINNESOTA BEER INC 4,951.15 345558 1090240771 5862.5514 COST OF GOODS SOLD BEER VERNON SELLING 196.00 345370 1090240776 5421.5514 COST OF GOODS SOLD BEER GRILL 310.00 345371 1090240777 5421.5514 COST OF GOODS SOLD BEER GRILL 1,652.50 345557 1090241103 5862.5514 COST OF GOODS SOLD BEER VERNON SELLING 3,659.55 345560 1090241899 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 43.00 345559 1090241900 5842.5515 COST OF GOODS SOLD MIX YORK SELLING 336.00 345372 1090241943 5421.5514 COST OF GOODS SOLD BEER GRILL 3,810.45 345913 1090244494 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 496.20 345914 1090244495 5842.5514 COST OF GOODS SOLD BEER YORK SELLING 15,454.85 R55CKR2 LOGIS101 CITY OF EDINA 6/24/2014 8:01:11 Council Check Register by GL Page - 29 Council Check Register by Invoice & Summary 6/26/2014 — 6/26/2014 Check # Date Amount Supplier / Explanation PO # Doc No Inv No Account No Subledger Account Description Business Unit 384196 6126/2014 124629 WIRTZ BEVERAGE MINNESOTA BEER INC Continued... 384197 6126/2014 101726 XCEL ENERGY 24,386.29 51- 5605640 -1 345373 415655512 5911.6185 LIGHT & POWER WELL PUMPS 1,906.38 51- 6227619 -3 345453 415667106 5761.6185 LIGHT & POWER CENTENNIAL LAKES OPERATING 51.07 51- 5276505 -8 345452 416082269 1330.6185 LIGHT & POWER TRAFFIC SIGNALS 6,811.23 51- 6955679 -8 345455 416135360 1551.6185 LIGHT & POWER CITY HALL GENERAL 112.34 51- 0010025256 -3 345454 416212097 1322.6185 LIGHT & POWER STREET LIGHTING ORNAMENTAL 33,267.31 384198 6/26/2014 106014 ZARLING, MARY 70.00 PLAYGROUND PROGRAM REFUND 345456 REFUND 1600.4390.01 PLAYGROUND PARKADMIN. GENERAL 70.00 384199 6/26/2014 101572 ZARNOTH BRUSH WORKS INC 1,415.00 BROOMS 345374 0149966 -IN 1310.6523 BROOMS STREET CLEANING 1,415.00 384200 6/26/2014 134399 ZIPSE, KIM 174.00 ART CENTER CLASS REFUND 345457 REFUND 5101.4607 CLASS REGISTRATION ART CENTER REVENUES 174.00 384203 6/26/2014 133821 BAEUMLER, CHRISTINE 1,050.00 PROMENADE ART CONSULTANT 341458 502 1600.6103 PROFESSIONAL SERVICES PARKADMIN. GENERAL 1,050.00 384204 6/26/2014 100961 POSTMASTER - USPS 6,550.77 ABOUT TOWN POSTAGE 3459,15 062014 1130.6123 MAGAZINE /NEWSLETTER EXPENSE COMMUNICATIONS 6,550.77 1,038,066.38 Grand Total Payment Instrument Totals Checks 1,032,120.68 A/PACH Payment 5,945.70 Total Payments 1,038,066.38 R55CKS2 LOGIS100 CITY OF EDINA 6/2412014 8:01:25 Company Amount 01000 GENERAL FUND 209,877.32 02300 POLICE SPECIAL REVENUE 98.93 02600 ARTS AND CULTURE FUND 943.31 04000 WORKING CAPITAL FUND 540,048.84 04200 EQUIPMENT REPLACEMENT FUND 14,825.88 05100 ART CENTER FUND 4,984.29 05200 GOLF DOME FUND 670.14 05300 AQUATIC CENTER FUND 532.91 05400 GOLF COURSE FUND 37,417.79 05500 ICE ARENA FUND 54.68- 05700 EDINBOROUGH PARK FUND 911.10 05750 CENTENNIAL LAKES PARK FUND 9,555.17 05800 LIQUOR FUND 178,608.53 05900 UTILITY FUND 33,849.35 D5930 STORM SEWER FUND 693.83 07400 PSTF AGENCY FUND 4,953.67 09232 CENTENNIAL TIF DISTRICT 150.00 Report Totals 1,038,066.38 Council Check Summary 6/26/2014 - 6/26/2014 We confirm to the best of our knowledge and belief, that these claims comply in all material respects with the requirements of the City of Edina purchasing policies and 1 /7 / i / Page - 1 Account Name Date * *6043 LISA SCHAEFER 2014/05/08 * *6043 LISA SCHAEFER 2014/05/14 * *0127 KAREN KURT 2014/04/29 * *0127 KAREN KURT 2014/05/14 * *0127 KAREN KURT 2014/05/16 * *0168 SCOTT NEAL 2014/05/01 * *0168 SCOTT NEAL 2014/05/02 * *0168 SCOTT NEAL 2014/05/05 * *0168 SCOTT NEAL 2014/05/07 * *0168 SCOTT NEAL 2014/05/09 * *0168 SCOTT NEAL 2014/05/15 * *0168 SCOTT NEAL 2014/05/21 * *2129 HEATHER BRANIGIN 2014/04/27 * *2129 HEATHER BRANIGIN 2014/05/02 * *2129 HEATHER BRANIGIN 2014/05/06 * *2129 HEATHER BRANIGIN 2014/05/07 * *2129 HEATHER BRANIGIN 2014/05/12 * *2129 HEATHER BRANIGIN 2014/05/12 * *2129 HEATHER BRANIGIN 2014/05/16 * *2129 HEATHER BRANIGIN 2014/05/20 * *2129 HEATHER BRANIGIN 2014/05/21 * *2129 HEATHER BRANIGIN 2014/05/22 * *2129 HEATHER BRANIGIN 2014/05/22 * *9159 CARY TEAGUE 2014/05/23 * *0176 JOHN WALLIN 2014/05/02 * *0176 JOHN WALLIN 2014/05/02 * *0176 JOHN WALLIN 2014/05/02 * *0176 JOHN WALLIN 2014/05/02 * *0143 DEB MANGEN 2014/05/18 * *0143 DEB MANGEN 2014/05/17 * *0143 DEB MANGEN 2014/05/22 * *0143 DEB MANGEN 2014/05/22 * *0184 ROBERT WILSON 2014/05/22 * *2522 BRIAN OLSON 2014/05/05 CITY OF EDINA CITY COUNCIL CREDIT CARD PAYMENT REGISTER 4/26/14- 05/26/14 Amount Description $120.00 Software $24.51 Supplies $149.00 Conference $30.75 Food $8.71 Food $35.42 Food $75.97 Food $30.94 Food $1,297.00 Training $33.36 Food $94.52 Data plan $5.00 Parking $32.00 Software $78.24 Food $189.98 Food $9.25 Model policy $357.31 Food $254.08 Food $403.56 Hotel $189.98 Food $50.00 Registration $29.93 Food $11.77 Food $56.13 Food $19.95 Transaction fees $19.95 Transaction fees -UB $18.25 Transaction fees $59.95 Transaction fees -UB $183.01 HOTELS $25.00 Baggage $50.00 Shuttle $25.00 Baggage $97.71 Hotel $25.70 Battery Merchant Name City State LESSMEETING.COM LESSMEETING.i GA OFFICE MAX EDINA MN ICMA INTERNET 800 - 745 -8780 DC BLACK BEAR LODGE AN BAXTER MN WENDY'S NISSWA MN ASTER CAFE MINNEAPOLIS MN EDINA GRILL EDINA MN EDINA GRILL EDINA MN ICMA 202 - 962 -3621 DC EDINA GRILL EDINA MN SPRINT *WIRELESS 800 - 639 -6111 KS IP JACKSON RAMP ST. PAUL MN VOLGISTICS INC 616 - 456 -5388 MI D BRIANS DELI - ECOMN 612 - 9617550 MN PINSTRIPES EDINA MN IACP 800 - 843 -4227 VA KOWALSKI'S MARKET EAGAN MN KOWALSKI'S MARKET EAGAN MN GRAND VIEW LODGE & ' NISSWA MN PINSTRIPES EDINA MN SENSIBLE LAND USE CC 612 - 7207667 MN STARBUCKS JERRY'S El EDINA MN JERRY'S FOODS OF ED EDINA MN EDINA GRILL EDINA MN PAYFLOW /PAYPAL 888 - 883 -9770 TX PAYFLOW /PAYPAL 888 - 883 -9770 TX PAYFLOW /PAYPAL 888 - 883 -9770 TX PAYFLOW /PAYPAL 888- 883 -9770 TX HYATT HOTELS MILWAL MILWAUKEE WI DELTA AIR 0068241253 MINN /ST PAUL MN GO RITEWAY TRANSPOI RICHFIELD WI DELTA AIR 0068241533 MILWAUKEE WI HOLIDAY INNS SAINT CLOUD MN BATTERIES PLUS #29 ROSEVILLE MN Account 1170.6105 1170.6406 1120.6104 1120.6104 1120.6104 1120.6106 1120.6106 1120.6106 1120.6104 1120.6106 1120.6188 1120.6106 1120.6160 1120.6106 1100.6106 1120.6405 1120.6106 1120.6106 1120.6104 1100.6106 1100.6104 1120.6106 1120.6106 1140.6103 1160.6155 5902.6155 1160.6155 5902.6155 1180.6104 1180.6104 1180.6104 1180.6104 1190.6104 1280.6406 G: \Purchasing cards \2014 purchasing card electronic files \2014 USB Purchasing Card Register.xlsx 6/13/2014 CITY OF EDINA CITY COUNCIL CREDIT CARD PAYMENT REGISTER 4/26/14- 05/26/14 Account Name Date Amount Description Merchant Name City State Account * *2522 BRIAN OLSON 2014/05/09 $190.45 Hotel GRAND VIEW LODGE & ' NISSWA MN 1280.6104 * *9180 MILLNER CHAD 2014/04/25 $24.50 Shipping USPS 266327043334099C MINNEAPOLIS MN 01406.1705.31 * *9180 MILLNER CHAD 2014/04/25 $24.50 Shipping USPS 266327043334099C MINNEAPOLIS MN 01411.1705.31 * *9180 MILLNER CHAD 2014/04/25 $195.00 Conference U OF M CCE NONCREDI' 612 - 625 -4259 MN 1262.6104 * *9180 MILLNER CHAD 2014/04/28 $9.48 Food JERRY'S FOODS OF ED EDINA MN 01407.1705.31 * *9180 MILLNER CHAD 2014/05/06 $7.78 Food JERRY'S FOODS OF ED EDINA MN 01409.1705.31 * *9180 MILLNER CHAD 2014/05/08 $50.00 Registration SENSIBLE LAND USE CC 612- 7207667 MN 1262.6104 * *9180 MILLNER CHAD 2014/05/09 $134.50 Certification BOARD OF AELSLAGID 651- 2962388 MN 1260.6104 * *6981 JOHN SCHEERER 2014/04/25 $134.09 Mailbox HOMEDEPOT.COM 800 - 430 -3376 CA 1318.6406 * *6981 JOHN SCHEERER 2014/04/29 $75.00 Training PENN FOSTER DOMEST 888 - 4271000 PA 1280.6104 * *6981 JOHN SCHEERER 2014/05/06 $150.00 Training U OF M CCE NONCREDI' 612 - 625 -4259 MN 1280.6104 * *6981 JOHN SCHEERER 2014/05/06 $150.00 Training U OF M CCE NONCREDI' 612- 625 -4259 MN 1280.6104 * *6981 JOHN SCHEERER 2014/05/06 $150.00 Training U OF M CCE NONCREDI'612- 625 -4259 MN 1280.6104 * *6981 JOHN SCHEERER 2014/05/06 $150.00 Training U OF M CCE NONCREDI' 612- 625 -4259 MN 1280.6104 * *6981 JOHN SCHEERER 2014/05/06 $150.00 Training U OF M CCE NONCREDI' 612 - 625 -4259 MN 1280.6104 * *6981 JOHN SCHEERER 2014/05/06 $150.00 Training U OF M CCE NONCREDI" 612- 625 -4259 MN 1280.6104 * *6981 JOHN SCHEERER 2014/05/20 $27.42 Tools 7 CORNERS ACE HARDY 651 - 2244859 MN 1301.6556 * *6999 DAN MCMAHON 2014/05/06 $343.91 PW VFD Boards DANFOSS 410 - 513 -1162 MD 1280.6406 * *6999 DAN MCMAHON 2014/05/15 $74.80 License DEPARTMENT OF LABOI651- 2845528 MN 1280.6406 * *6999 DAN MCMAHON 2014/05/19 $265.00 Registration MN ELECTRICAL ASSOC 612 - 827 -6117 MN 1281.6104 * *6999 DAN MCMAHON 2014/05/19 $245.00 Registration SPRUNG SERVICES INC 651 - 697 -0334 MN 1281.6104 * *6999 DAN MCMAHON 2014/05/19. $50.00 License DEPARTMENT OF LABOI651- 2845528 MN 1280.6105 * *7005 DAVE GOERGEN 2014/04/25 $69.06 Supplies MENARDS 3282 GOLDEN VALLE MN 5915.6406 * *7005 DAVE GOERGEN 2014/04/25 $183.00 Membership AMERICAN WATERWOR 800 - 926 -7337 CO 5913.6105 * *7005 DAVE GOERGEN 2014/05/14 $11.84 Supplies WALLY'S SERVICE STA MINNEAPOLIS MN 5932.6406 * *7013 GARY WELLS 2014/04/30 $94.61 Supplies TARGET 00023135 EDINA MN 5923.6530 * *7013 GARY WELLS 2014/04/30 $21.44 Cable BEST BUY MHT 0000611 EDEN PRAIRIE MN 5923.6530 * *7013 GARY WELLS 2014/05/07 $297.42 Supplies BEST BUY MHT 0000611 EDEN PRAIRIE MN 5923.6530 * *7013 GARY WELLS 2014/05/07 $42.37 Connector USA SECURITY INC. 952- 829 -5919 MN 5923.6530 * *7013 GARY WELLS 2014/05/15 $96.53 Battery ACME TOOLS #220 PLYMOUTH MN 5913.6530 * *7013 GARY WELLS 2014/05/22 $100.00 Disputed transaction SP * TRAPLORD WWW.TRAPLOI NY 5923.6530 * *7013 GARY WELLS 2014/05/22 $52.50 Parts AMAZON MKTPLACE PM AMZN.COM /BILL WA 5923.6530 * *7013 GARY WELLS 2014/05/23 $188.40 Disputed transaction MULTISAFEPAY AMSTERDAM 5923.6530 * *7013 GARY WELLS 2014/05/22 $34.58 Disputed transaction GALIBARDY 44791351519 5923.6530 G: \Purchasi ards \2014 purchasing card electronic files \2014 USB Purc ig Card Register.xlsx 6/13/2014 CITY OF EDINA CITY COUNCIL CREDIT CARD PAYMENT REGISTER 4/26/14- 05/26/14 Account * *2929 Name Date Amount Description Merchant Name City State Account DAVID NELSON 2014/04/27 $13.00 Parking LANIER PARKING 10460 ROCHESTER MN 1419.6104 * *2929 DAVID NELSON 2014/04/27 $149.00 Hotel HOLIDAY INN CITY CENT ROCHESTER MN 1419.6104 * *2929 DAVID NELSON 2014/04/27 $149.00 Hotel HOLIDAY INN CITY CENT ROCHESTER MN 1419.6104 * *2929 * *2929 DAVID NELSON 2014/05/02 $570.00 Goggles INNOCORP, LTD 608 - 8455558 WI 1400.6406 * DAVID NELSON 2014/05/09 $1,089.00 Hardware APPLE STORE #R054 EDINA MN 1400.6406 *2929 DAVID NELSON 2014/05/15 $59.29 Shoe shine KIWISHOESHINE 949 - 722 -0363 CA 1400.6406 * *2929 DAVID NELSON 2014/05/16 $6.36 Keys JERRY'S DO IT BEST HA EDINA MN 1400.6406 * *2929 DAVID NELSON 2014/05/23 $44.68 Food JERRY'S FOODS OF ED EDINA MN 1400.6406 * *4334 RYAN SCHULTZ 2014/04/29 $53.89 Squad equipment DAVSTAR SECURITY 334 - 722 -1542 AL 1400.6215 * *4334 RYAN SCHULTZ 2014/04/30 $247.49 Hotel ARROWWOOD RESORT ALEXANDRIA MN 1490.6104 * *4334 * RYAN SCHULTZ 2014/04/30 $247.49 Hotel ARROWWOOD RESORT ALEXANDRIA MN 1490.6104 *4334 RYAN SCHULTZ 2014/05/01 $11.46 Kick stand WILD PRAIRIE HARLEY4 EDEN PRAIRIE MN 1400.6215 * *4334 * RYAN SCHULTZ 2014/05/02 $15.23 Fuel HOLIDAY STNSTORE 41: BURNSVILLE MN 1400.6107 *4334 RYAN SCHULTZ 2014/05/01 $50.00 Certification NATIONAL ACADEMY OF 800 - 9606236 UT 2310.6104 * *4334 RYAN SCHULTZ 2014/05/06 $19.00 Fuel FORD PARKWAY BP SAINT PAUL MN 1400.6107 * *4334 * RYAN SCHULTZ 2014/05/05 $13.23 Fuel HOLIDAY STNSTORE 41: BURNSVILLE MN 1400.6107 *4334 * *4334 RYAN SCHULTZ 2014/05/08 $859.98 Vehicle equipment DAYSTAR SECURITY 334 - 722 -1542 AL 1400.6215 * *4334 RYAN SCHULTZ 2014/05/13 $196.27 Teen driving event DAVANNI'S #15 EDINA MN 1400.6406 * *4334 RYAN SCHULTZ 2014/05/12 $243.67 Hotel GRAND VIEW LODGE & ' NISSWA MN 1400.6104 RYAN SCHULTZ 2014/05/15 $395.97 Boots INTAPOL INDUSTRIES 201 - 432 -5555 NJ 1400.6203 * *8481 TOM SCHMITZ 2014/05/08 $21.46 Patch sewing EDEN TAILORS EDEN PRAIRIE MN 1470.6180 * *8481 * TOM SCHMITZ 2014/05/13 $4.25 Parking MN ST IAP ADM PMD PA SAINT PAUL MN 1470.6107 *8499 CRAIG ESSIG 2014/05/07 $50.00 PIO training BLK *HENNEPIN HEALTH 866- 992 -3374 CA 1470.6104 * *8499 CRAIG ESSIG 2014/05/16 $573.81 Tuition MNSCU 877 - 4666728 MN 1470.6104 * *0927 DARRELL TODD 2014/04/25 $58.72 Pelican case SWPS.COM /210- 590 - 936;210- 590 -9363 TX 1470.6406 * *0927 DARRELL TODD 2014/04/26 $20.00 Data plan VZWRLSS *PRPAY AUTO 888 - 294 -6804 CA 1470.6188 * *0927 * DARRELL TODD 2014/04/27 $40.00 Data plan VZWRLSS *PRPAY AUTO 888 - 294 -6804 CA 1470.6188 *0927 * DARRELL TODD 2014/05/01 $3.21 Chalk MENARDS 3268 EDEN PRAIRIE MN 1470.6406 *0927 DARRELL TODD 2014/05/13 $7.00 Parking TECH VILLAGE RAMP DULUTH MN 1470.6107 * *0927 * *0927 DARRELL TODD 2014/05/13 $33.62 Food PIZZA LUCE DULUTH III DULUTH MN 1470.6106 * *0927 DARRELL TODD 2014/05/20 $20.00 Data plan VZWRLSS *PRPAY AUTO 888 - 294 -6804 CA 1470.6188 * *2512 DARRELL TODD 2014/05/24 $20.00 Data plan VZWRLSS *PRPAY AUTO 888 - 294 -6804 CA 1470.6188 * DAVID FISHER 2014/04/25 $94.76 Training INT'L CODE COUNCIL IN, 888 - 422 -7233 IL 1495.6405 *2512 DAVID FISHER 2014/04/25 $125.00 ICC Membership INT'L CODE COUNCIL IN -888- 422 -7233 IL 1495.6105 GAPurchasing cards \2014 purchasing card electronic files \2014 USB Purchasing Card Register.xlsx 6/13/2014 CITY OF EDINA CITY COUNCIL CREDIT CARD PAYMENT REGISTER 4/26/14- 05/26/14 Account Name Date Amount Description Merchant Name City State Account * *2512 DAVID FISHER 2014/05/06 $105.00 Training - Schweitzer ACT *10KLAKES 877 - 551 -5560 CA 1495.6104 * *2512 DAVID FISHER 2014/05/12 $105.00 Training - Archer ACT *10KLAKES 877 - 551 -5560 CA 1495.6104 * *2512 DAVID FISHER 2014/05/14 $75.09 Office supplies MICRO CENTER #045 RE ST LOUIS PARK MN 1495.6406 * *1996 GUNNAR KAASA 2014/05/02 $454.38 Parts NPC *NEW PIG CORP 800 - 468 -4647 PA 1553.6585 * *1996 GUNNAR KAASA 2014/05/06 $268.90 Vehicle rental BUDGET TRUCK271060C BLOOMINGTON MN 1553.6585 * *1996 GUNNAR KAASA 2014/05/12 $146.76 Supplies MENARDS 3268 EDEN PRAIRIE MN 1553.6406 * *1996 GUNNAR KAASA 2014/05/13 $223.81 Degreaser PAYPAL *INTERSTATE 402 - 935 -7733 FL 1553.6406 * *1996 GUNNAR KAASA 2014/05/14 $33.70 Kerosene WM H MCCOY PETROLE MINNEAPOLIS MN 1553.6581 * *1996 GUNNAR KAASA 2014/05/17 $90.17 Parts NPC *NEW PIG CORP 800 - 468 -4647 PA 1553.6530 * *1996 GUNNAR KAASA 2014/05/19 $217.50 Membership AMERICAN PUBLIC WOF DAN.PAVLICHC MO 1553.6406 * *1996 GUNNAR KAASA 2014/05/21 $62.03 Parts ROSEDALE CHEVROLET 651- 636 -0340 MN 1553.6530 * *1996 GUNNAR KAASA 2014/05/22 $61.30 Parts ROSEDALE CHEVROLET 651- 636 -0340 MN 1553.6530 * *1996 GUNNAR KAASA 2014/05/23 $4.28 Supplies MICHAELS STORES 373 BLOOMINGTON MN 1553.6406 * *8753 RYAN BROWNING 2014/05/06 $20.00 iPad data - Gilgenbac VZWRLSS *PRPAY AUTO 888 - 294 -6804 CA 1130.6160 * *8753 RYAN BROWNING 2014/05/14 $65.98 Presentation remotes AMAZON MKTPLACE PM AMZN.COM /BILL WA 1554.6406 * *5587 DAWN BEITEL 2014/05/18 $64.32 Planter THE HOME DEPOT 2825 CHASKA MN 5720.6620 * *5587 DAWN BEITEL 2014/05/18 $38.38 Plant stand THE HOME DEPOT 2825 CHASKA MN 5720.6620 * *5587 DAWN BEITEL 2014/05/22 $65.70 Supplies THE HOME DEPOT 2812 EDEN PRAIRIE MN 5720.6620 * *6841 ANN KATTREH 2014/05/22 $20.00 Data plan VZWRLSS *PRPAY AUTO 888 - 294 -6804 CA 1600.6188 * *7279 DONNA TILSNER 2014/05/05 $1,375.00 Golf league FRED RICHARDS GOLF EDINA MN 1628.6103.02 * *7279 DONNA TILSNER 2014/05/05 $1,300.00 Golf league FRED RICHARDS GOLF EDINA MN 1628.6103.02 * *7279 DONNA TILSNER 2014/05/18 $35.37 Golf supplies TARGET 00002600 ST. LOUIS PAR MN 1628.6406 * *7130 ERIC BOETTCHER 2014/05/05 $217.21 Supplies STAPLES 00119180 BLOOMINGTON MN 4075.6406 * *7130 ERIC BOETTCHER 2014/05/11 $14.45 Supplies OFFICE DEPOT #2600 COON RAPIDS MN 4075.6406 * *6032 KRISTIN AARSVOLD 2014/05/12 $25.00 Workshop MN RECREATION AND P 763- 571 -1305 MN 1600.6104 * *6032 KRISTIN AARSVOLD 2014/05/13 $60.00 Workshop MN RECREATION AND P 763- 571 -1305 MN 1600.6104 * *0756 BOB PRESTRUD 2014/05/01 $150.00 MPSTMA membershi MPSTMA 952 - 473 -3722 MN 1642.6103 * *2293 JENNIFER BENNER0 2014/04/28 ($291.75) OFFICE SUPPLIES AMAZON MKTPLACE PM AMZN.COM /BILL WA 1130.6406 * *2293 JENNIFER BENNER0 2014/04/29 $79.00 Stock video footage STK *SHUTTERSTOCK, IP 866- 663 -3954 NY 1130.6408 * *2293 JENNIFER BENNER0 2014/05/01 $5.35 Commercial props TRADER JOE'S #724 QP; BLOOMINGTON MN 1130.6410 * *2293 JENNIFER BENNERO2014 /05/03 $10.72 Software ADOBE SYSTEMS, INC. 800 - 833 -6687 WA 1130.6103 * *2293 JENNIFER BENNER02014 /05/05 $20.73 WHOLESALE TRADE TARGET 00002204 EDEN PRAIRIE MN 1130.6406 * *2293 JENNIFER BENNERO2014 /05/05 $28.80 Groundbreaking PARTY CITY 1005 EDEN PRAIRIE MN 1600.6103 * *2293 JENNIFER BENNERO 2014/05/05 $20.00 Data plan - Bennerott VZWRLSS *PRPAY AUTO 888 - 294 -6804 CA 1130.6160 G: \Purchasi ards \2014 purchasing card electronic files \2014 USB Purc 'ng Card Register.xlsx 6/13/2014 Account Name Date * *2293 JENNIFER BENNERO 2014/05/05 * *2293 JENNIFER BENNERO 2014/05/06 * *2293 JENNIFER BENNER02014 /05/05 * *2293 JENNIFER BENNER02014 /05/06 * *2293 JENNIFER BENNERO 2014/05/06 * *2293 JENNIFER BENNERO 2014/05/06 * *2293 JENNIFER BENNERO 2014/05/06 * *2293 JENNIFER BENNER02014 /05/08 * *2293 JENNIFER BENNER02014 /05/11 * *2293 JENNIFER BENNER02014 /05/12 * *2293 JENNIFER BENNER02014 /05/14 * *2293 JENNIFER BENNER02014 /05/16 * *2293 JENNIFER BENNERO 2014/05/16 * *2293 JENNIFER BENNER0 201 4 /05/1 6 * *2293 JENNIFER BENNER02014/05/18 * *2293 JENNIFER BENNER02014 /05/18 * *2293 JENNIFER BENNER02014 /05/19 * *2293 JENNIFER BENNER02014 /05/22 * *2293 JENNIFER BENNERO 2014/05/19 * *8318 TOM SWENSON 2014/04/30 * *8318 TOM SWENSON 2014/05/14 * *8806 MARY WOOLDRIDGE 2014/04/26 * *8806 MARY WOOLDRIDGE 2014/04/28 * *8806 MARY WOOLDRIDGE 2014/05/13 * *8806 MARY WOOLDRIDGE 2014/05/13 * *8806 MARY WOOLDRIDGE 2014/05/15 * *8806 MARY WOOLDRIDGE 2014/05/15 * *8806 MARY WOOLDRIDGE 2014/05/15 * *8806 MARY WOOLDRIDGE 2014/05/20 * *7820 SUSIE MILLER 2014/04/25 *7820 SUSIE MILLER 2014/05/02 * *7820 SUSIE MILLER 2014/05/02 * *7820 SUSIE MILLER 2014/05/03 * *7820 SUSIE MILLER 2014/05/02 CITY OF EDINA CITY COUNCIL CREDIT CARD PAYMENT REGISTER 4/26/14- 05/26/14 Amount Description Merchant Name City State Account $20.00 Data plan - Martin VZWRLSS *PRPAY AUTO 888 - 294 -6804 CA 1130.6160 ($5.98) WHOLESALE TRADE TARGET 00023135 EDINA MN 1130.6406 $53.63 Software - Denfeld ADOBE SYSTEMS, INC. 800 - 833 -6687 WA 1130.6406 ($5.35) Office supplies OFFICE MAX ST. LOUIS PAR MN 01404.1705.31 $107.25 Groundbreaking food JIMMY JOHN'S # 517 MINNEAPOLIS MN 1600.6103 $53.63 Software - Denfeld ADOBE SYSTEMS, INC. 800 - 833 -6687 WA 1130.6406 $11.96 Online subscription THE STAR TRIBUNE CIR 612- 6734343 MN 1130.6105 $18.00 Tickets MAGC 651 - 6754434 MN 1130.6104 $20.00 Data plan - Denfeld VZWRLSS *PRPAY AUTO 888 - 294 -6804 CA 1130.6160 $32.17 Software ADOBE SYSTEMS, INC. 800 - 833 -6687 WA 1130.6103 $32.17 Software ADOBE SYSTEMS, INC. 800 - 833 -6687 WA 1130.6103 $268.94 Camera dolly kit SP * REVOLVE CAMERA REVOLVECAME CA 1130.6410 $50.00 BUSINESS EXPENS PAYPAL *NATASUMW 402 - 935 -7733 CA 1130.6406 $50.00 BUSINESS EXPENS PAYPAL *NATASUMW 402 - 935 -7733 CA 1130.6406 $29.95 Online software 2NDSITE FRESHBOOKS 416- 481 -6946 ON 1130.6124 $5.00 Spam blocker AKSMT.COM 877 - 273 -3049 CA 1130.6124 $200.00 MACTA Conference MACTA 651- 2906262 MN 1132.6104 $20.00 Data plan VZWRLSS *PRPAY AUTO 888 - 294 -6804 CA 1130.6406 $20.00 Stock photos 123RF.COM INTERNET 1130.6408 $160.26 Rope THE HOME DEPOT 2812 EDEN PRAIRIE MN 5210.6406 $63.00 Graph paper DICKSON 800 - 323 -2448 IL 5422.6406 ($26.81) Supplies HOMEGOODS #0581 EDINA MN 5421.6406 $20.00 Data plan VZWRLSS *PRPAY AUTO 888 - 294 -6804 CA 5440.6406 $200.00 Advertising COMCAST SPOTLIGHT C 847 - 384 -5000 MI 5210.6122 $121.53 Office supplies OFFICE MAX EDINA MN 5410.6513 $7.90 Shipping FEDEX 44838771004756( MEMPHIS TN 5440.6406 $13.25 Book AMAZON.COM AMZN.COM /BILL WA 5410.6406 $358.01 Glow supplies THE GLOW STORE VICTORIA BC 5424.6590 $28.92 Office supplies OFFICE DEPOT #415 EDEN PRAIRIE MN 5410.6513 $95.86 Food JERRY'S FOODS OF ED EDINA MN 5511.6406 $695.00 BUSINESS EXPENS SERVING THE AMERICA 719 - 5381149 CO 5510.6104 $40.56 Food TARGET 00000034 CRYSTAL MN 5511.6406 $203.82 Towing MATTS AUTO SERVICE 1952-9492900 MN 5521.6180 $635.00 AIRLINE DELTA AIR 00623587471 DELTA.COM CA 5510.6104 GAPurchasing cards \2014 purchasing card electronic files \2014 USB Purchasing Card Register.xlsx 6/13/2014 Account Name * *7820 * *7820 * *7820 * *7820 * *7820 * *7820 * *7820 * *7820 * *7820 * *7820 * *3792 * *3792 * *3792 * *3792 * *3792 * *5821 * *5821 * *5821 * *5821 * *9665 * *1282 * *1282 * *1282 * *0116 * *0116 * *0116 * *0116 * *0116 * *0116 * *0116 * *0116 * *0116 * *0116 * *0116 SUSIE MILLER SUSIE MILLER SUSIE MILLER SUSIE MILLER SUSIE MILLER SUSIE MILLER SUSIE MILLER SUSIE MILLER SUSIE MILLER SUSIE MILLER MICHAEL FREY MICHAEL FREY MICHAEL FREY MICHAEL FREY MICHAEL FREY Date 2014/05/12 2014/05/18 2014/05/19 2014/05/18 2014/05/19 2014/05/20 2014/05/20 2014/05/21 2014/05/21 2014/05/21 2014/04/25 2014/05/10 2014/05/14 2014/05/20 2014/05/22 AMY SMITH 2014/05/06 AMY SMITH 2014/05/09 AMY SMITH 2014/05/13 AMY SMITH 2014/05/19 SUSAN FAUS 2014/05/02 PATRICIA MCGRATH 2014/05/05 PATRICIA MCGRATH 2014/05/06 PATRICIA MCGRATH 2014/05/24 TOM SHIRLEY 2014/04/30 TOM SHIRLEY 2014/05/02 TOM SHIRLEY 2014/05/05 TOM SHIRLEY 2014/05/05 TOM SHIRLEY 2014/05/08 TOM SHIRLEY 2014/05/09 TOM SHIRLEY 2014/05/12 TOM SHIRLEY 2014/05/14 TOM SHIRLEY 2014/05/15 TOM SHIRLEY 2014/05/17 TOM SHIRLEY 2014/05/19 CITY OF EDINA CITY COUNCIL CREDIT CARD PAYMENT REGISTER 4/26/14- 05/26/14 Amount Description $304.90 Supplies $17.02 Food $18.00 Food $25.00 Baggage $13.00 Food $313.47 Hotel $5.11 Food $182.43 RENTAL CARS $16.00 Food $25.00 Baggage $202.35 Media $78.40 Printing $44.14 Food $36.91 Food $29.12 Food $60.75 Wine $1,453.58 Chairs $334.20 Wine $155.95 Clocks $30.00 iPad data - Faus $100.00 Postage $33.74 Meter rental $295.60 Lifeguard suits $287.74 Supplies $165.74 Supplies $121.90 Supplies $53.50 Pavillion supplies $141.70 Register paper $251.25 Seeds $137.40 Pavillion supplies $126.00 Supplies $128.83 Building repair $23.69 Fishing license $400.40 Clay pots Merchant Name City State Account RADIOSHACK COR0016C ST LOUIS PARK MN 5511.6406 NT - IKES MSP 20358776 ST PAUL MN 5510.6104 GORDON BIERSCH -CLM COLUMBUS OH 5510.6104 DELTA AIR 00682416741 MINN /ST PAUL MN 5510.6104 THREE - LEGGED MARE COLUMBUS OH DRURY COLUMBUS CV ( COLUMBUS OH SUBWAY 00150920 COLUMBUS OH NATIONAL CAR RENTAL COLUMBUS OH PF CHANGS #9205 ATLANTA GA DELTA AIR 0068241120! COLUMBUS OH MEDIA SUPPLY INC 610 - 884 -4400 PA OVERNIGHTPRINTS 888 - 677 -2000 NV DOMINO'S 1927 320 - 235 -8277 MN DOMINO'S 1927 320 - 235 -8277 MN DOMINO'S 1927 320 - 235 -8277 MN EDINA LIQUOR YORK EDINA MN BY THE YARD INC JORDAN MN EDINA LIQUOR YORK EDINA MN TARGET 00023135 EDINA MN VZWRLSS *PRPAY AUTO 888 - 294 -6804 CA POSTAGE REFILL 800 - 468 -8454 CT PITNEY BOWES* 800 - 228 -1071 CT THE LIFEGUARD STORE 309 - 451 -5858 IL MENARDS 3297 RICHFIELD MN MENARDS 3297 RICHFIELD MN MENARDS 3268 EDEN PRAIRIE MN MENARDS 3297 RICHFIELD MN U BI CON 630 - 660 -8917 IL TWIN CITY SEED CO EDINA MN MENARDS 3297 RICHFIELD MN TWIN CITY SEED CO EDINA MN MENARDS 3297 RICHFIELD MN ACT *MNHUNTFISH 888 - 773 -8450 CA HUMMERT INTERNAT101314- 506 -4511 MO 5510.6104 5510.6104 5510.6104 5510.6104 5510.6104 5510.6104 5125.5510 5110.6575 5110.6564 5110.6564 5110.6564 5420.5513 5424.6406 5421.5513 5410.6406 1600.6188 5710.6235 5710.6235 5311.6201 5761.6406 5761.6406 5761.6406 5761.6406 5760.6513 5761.6620 5761.6406 5761.6620 5761.6406 5760.6105 5761.6406 G: \Purchasi ards \2014 purchasing card electronic files \2014 USB Purc 'ng Card Register.xlsx 6/13/2014 CITY OF EDINA CITY COUNCIL CREDIT CARD PAYMENT REGISTER 4/26/14- 05/26/14 Account * *0116 Name Date Amount Description Merchant Name City State Account TOM SHIRLEY 2014/05/19 $96.52 Putting supplies MENARDS 3297 RICHFIELD MN 5761.6406 * *0116 TOM SHIRLEY 2014/05/24 $2,115.99 Refrigerator FOODSERVICEWAREHC877- 877 -4379 CO 5761.6406 * *0093 STEVEN GRAUSAM 2014/04/28 $17.15 Paper OFFICE MAX EDINA MN 5822.6512 * *0093 STEVEN GRAUSAM 2014/04/28 $17.15 Paper OFFICE MAX EDINA MN 5842.6512 * *0093 STEVEN GRAUSAM 2014/04/28 $17.16 Paper OFFICE MAX EDINA MN 5862.6512 * *0093 STEVEN GRAUSAM 2014/05/09 $5.99 Supplies JERRY'S DO IT BEST HA EDINA MN 5821.6406 * *0093 STEVEN GRAUSAM 2014/05/09 $399.00 Conference PAYPAL *MINNESOTAML402- 935 -7733 CA 5820.6106 * *0093 STEVEN GRAUSAM 2014/05/09 $399.00 Conference PAYPAL *MINNESOTAML402- 935 -7733 CA 5860.6106 * *0093 STEVEN GRAUSAM 2014/05/13 $30.00 Gift cards EDINA LIQUOR YORK EDINA MN 5822.6406 * *0093 STEVEN GRAUSAM 2014/05/13 $60.00 Gift cards EDINA LIQUOR YORK EDINA MN 5842.6406 * *0093 STEVEN GRAUSAM 2014/05/13 $30.00 Gift cards EDINA LIQUOR YORK EDINA MN 5862.6406 * *0025 GERALD KOPLOS 2014/04/26 $100.61 Ammo MILLS FLEET FARM #3,2, CARVER MN 7414.6406 * *0025 GERALD KOPLOS 2014/04/30 $11.07 Food CUB FOODS EDEN PRAI EDEN PRAIRIE MN 7410.6106 * *0025 GERALD KOPLOS 2014/05/01 $268.04 Wiring module DKC *DIGI KEY CORP 800 - 344 -4539 MN 7411.6406 * *0025 GERALD KOPLOS 2014/05/13 $10.91 Containers CUB FOODS EDEN PRAI EDEN PRAIRIE MN 7411.6406 * *0025 * *0025 GERALD KOPLOS 2014/05/13 $23.45 Supplies THE HOME DEPOT 2812 EDEN PRAIRIE MN 7411.6406 * *0025 GERALD KOPLOS 2014/05/16 $104.06 Supplies JERRY'S DO IT BEST HA EDINA MN 7411.6406 * GERALD KOPLOS 2014/05/16 $40.31 Supplies JERRY'S DO IT BEST HA EDINA MN 7411.6406 *2223 * *2223 GREG BRETSON 2014/05/05 $58.93 Tools THE HOME DEPOT 2812 EDEN PRAIRIE MN 7411.6530 GREG BRETSON 2014/05/06 $37.27 Supplies THE HOME DEPOT 2812 EDEN PRAIRIE MN 7411.6406 * *2223 GREG BRETSON 2014/05/19 $46.10 Supplies JERRY'S DO IT BEST HA EDINA MN 7411.6406 * *2223 * *2223 GREG BRETSON 2014/05/21 $43.05 Supplies THE HOME DEPOT 2812 EDEN PRAIRIE MN 7411.6406 * *9956 GREG BRETSON 2014/05/23 $39.45 Tools JERRY'S DO IT BEST HA EDINA MN 7411.6406 DEB FIELDS 2014/05/02 $18.54 Food DOMINO'S 1927 320 - 235 -8277 MN 7414.6104 * *9956 * *9956 DEB FIELDS 2014/05/01 $30.00 Email service EMA *EMMA EMAIL MARK 800 - 5954401 TN 7410.6122 * *9956 DEB FIELDS 2014/05/05 $19.80 Advertising GOOGLE *ADWS510766F CC @GOOGLE.0 CA 7410.6122 DEB FIELDS 2014/05/20 $32.16 Office supplies OFFICE DEPOT #415 EDEN PRAIRIE MN 7410.6513 CITY OF EDINA 2014/05/14 ($979.50) Rebate US Bank 1001.8070 $31,015.83 G: \Purchasing cards \2014 purchasing card electronic files \2014 USB Purchasing Card Register.xlsx 6/13/2014 We confirm to the best of our knowledge and belief, that these claims comply in all material respects with the requirements of the City of Edina purchasing poligies and procedu M To: Mayor & City Council oe`'� 0 • ��ooarot�A'�C/ �aaa Agenda Item #: IV. C. From: Joyce Repya, Senior Planner Action Cl Discussion ❑ Date: July 1, 2014 Information ❑ Subject: Fiscal Year 20 15-20 17 Joint Cooperation Agreernent/Community Development Block Grant (CDBG) Renewal - Resolution No. 2014 -71 Action Requested: Approve Fiscal Year 2015 -2017 Joint Cooperation Agreement/Community Development Block Grant (CDBG) Program Information / Background: Every three years a new agreement is required between the City of Edina and Hennepin County to govern the receipt and expenditure of Community Development Block Grant (CDBG) funds for the period of the agreement. The purpose of the agreement is to set forth broad shared powers for carrying out housing and community development activities. HUD requires this agreement in order for Hennepin County to qualify as an urban county and receive CDBG Program entitlement funds. The existing agreement pertaining to FY 2012 -2014 expires at the end of the year. Since FY 2009 -2011 the agreement has remained unchanged and participation has been automatically renewed without requiring the execution of another agreement and resolution. In fact, the city received a letter from Hennepin County dated April 1, 2014, reflecting the automatic renewal of the agreement for the Fiscal Year 2015 -2017. However since then, HUD released Notice CPD -13 -04 dated April 25, 2014 which requires changes to the Joint Cooperation Agreement for 2015 -2017. The attached 2015 -2017 Joint Cooperation Agreement reflects the following changes: 1) The addition of language stating that the agreement covers not only the CDBG Entitlement program and the HOME Investment Partnership (HOME), but also the Emergency Solutions Grants (ESG) programs. 2) The addition of a provision that a unit of general local government may not sell, trade, or otherwise transfer all or any portion of such funds to another such metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives CDBG funds in exchange for any other funds, credits or non - Federal considerations, but must use such funds for activities eligible under Title I of the Act. This new requirement is contained in the FY2014 HUD appropriation bill. City of Edina • 4801 W. 50th St. • Edina, MN 55424 REPORT & RECOMMENDATION FY 2015 -2017 Joint Cooperation Agreement Page 2 3) Clarification of Fair Housing language. Also, the County is taking this opportunity to move contract term language specific to the CDBG contract year from the Joint Cooperation Agreement, Section D to the annual CDBG Subrecipient contracts for awards starting in FY 2015. And lastly, the Planning and Administrative cost language has been expanded to reflect the County's growing costs associated with compliance and timeliness monitoring, and the potential need for future increases. The current 13% which has been in effect since 2002 will increase to 20% (the maximum allowed by HUD). Due to the aforementioned changes imposed by HUD, Hennepin County has asked the city to provide a resolution and sign the execution page of the amended Joint Cooperation Agreement for 2015 -2017, attesting to the city's approval of the revised Agreement. ATTACHMENTS: A. Resolution 2014 -71 B. Letter from Hennepin County C. Joint Cooperation Agreement - Contract No. 140805 D. Joint Cooperation Agreement - Reflecting Changes A1T ".A4 i, A tj RESOLUTION NO. 2014 -71 AUTHORIZING THE EXECUTION OF A JOINT COOPERATION AGREEMENT BETWEEN THE CITY OF EDINA AND HENNEPIN COUNTY FOR PARATICIPATION IN THE URBAN HENNEPIN COUNTY COOMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM IN FY 2015 - 2017 WHEREAS, the City of Edina, Minnesota and the County of Hennepin have in effect a Joint Cooperation Agreement for purposes of qualifying as an Urban County under the United States Department of Housing and Urban Development Community Development Block Grant (CDBG), Emergency Solutions Grants (ESG) Program, and HOME Investment Partnerships (HOME) Programs; and WHEREAS, The City and County wish to execute a new Joint Cooperation Agreement in order to continue to qualify as an Urban County for purposes of the Community Development Block Grant, ESG and HOME programs. BE IT THEREFORE RESOLVED that a new Joint Cooperation Agreement between the City and County be executed effective October 1, 2014 and that the Mayor and the City Manager be authorized and directed to sign the Agreement on behalf of the City. Passed and adopted this day of , 2014 Attest: Debra A Mangen, City Clerk James B. Hovland, Mayor STATE OF MINNESOTA ) COUNTY OF HENNEPIN )SS CITY OF EDINA ) CERTIFICATE OF CITY CLERK I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina City Council at its Regular Meeting of July 1, 2014, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this day of , 2014 City Clerk CITY OF EDINA 4801 West 50th Street • Edina, Minnesota 55424 wwwEdinaMN.gov • 952 - 927 -8861 • Fax 952 - 826 -0389 MW 4M Hennopofi County DDepaptfent of HougoRgo Cofmunfty Fvovks & Trransot 701 Fourth Avenue South, Suite 400 612 -348 -9260, Phone Minneapolis, Minnesota 55415 612- 348 -9710, Fax www.hennepin.us June 4, 2014 Mr. Scott Neal City Manager City of Edina 4801 West 50th Street Edina, MN 55424 Subject: Fiscal Year 2015 — 2017 Joint Cooperation Agreement /Community Development Block Grant (CDBG) Program —Action Needed Dear Mr. Neal: On April 1, 2014, we sent a letter regarding your participation in the Urban Hennepin County Community Development Block Grant (CDBG) Program (Urban County CDBG Program). Since then, HUD released Notice CPD -13 -04 dated April 25, 2014 which requires certain changes to the Joint Cooperation Agreement (JCA) for 2015 -2017. The attached revised 2015 -2017 JCA reflects the following changes: 1) The addition of language stating that the agreement covers not only the CDBG Entitlement program and the HOME Investment Partnership (HOME), but also the Emergency Solutions Grants (ESG) Programs. 2) The addition of a provision that a unit of general local government may not sell, trade, or otherwise transfer all or any portion of such funds to another such metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives CDBG funds in exchange for any other funds, credits or non - Federal considerations, but must use such funds for activities eligible under Title I of the Act. This new requirement is contained in the FY2014 HUD appropriation bill. 3) Clarification of Fair Housing language. In addition, we are taking this opportunity to move contract term language specific to the CDBG contract year from the JCA Section D to the annual CDBG subrecipient contracts for awards starting in FY 2015. Finally, Planning and Administrative cost language has been expanded to reflect the County's growing costs associated with compliance and timeliness monitoring and the potential need for ^nEot ;G••ao;EUnr'iyErn;tcy�r p2cyn"- dPo:; -r Mr. Neal June 4, 2014 Page 2 future increases (the County has retained 13 percent since 2002; the maximum allowed by HUD is 20 percent) within the term of the JCA. These changes require a certified City resolution approving the new /amended JCA. Attached is a sample resolution for your use. Please return three signed copies of page 9 of the 2015 -2017 JCA and two certified resolutions by July 18, 2014 to: Margo Geffen Manager, Housing Development and Finance Hennepin County Housing, Community Works and Transit 701 Fourth Avenue South, Suite 400 Minneapolis, MN 55415 Copies of these materials, including a red -lined version of the revised 2015 -2017 JCA, were also sent to you via email. Please don't hesitate to call me at 612 -543 -1965 or Abby Shafer at 612 - 348 -2205 with any questions. Thank you for your patience with respect to the timing of this request. Sincerely, Margo Geff Manager, Housing Development and Finance Enclosures cc: Joyce Repya Abby Shafer, Hennepin County A° h, c, h im &b Contract No. 140805 JOINT COOPERATION AGREEMENT URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT made and entered into by and between the COUNTY OF HENNEPIN, State of Minnesota, hereinafter referred to as "COUNTY," A -2400 Government Center, Minneapolis, Minnesota, 55487, and the cities executing this Master Agreement, each hereinafter respectively referred to as "COOPERATING UNIT," said parties to this Agreement each being governmental units of the State of Minnesota, and made pursuant to Minnesota Statutes, Section 471.59. WITNESSETH: COOPERATING UNIT and COUNTY agree that it is desirable and in the interests of their citizens that COOPERATING UNIT shares its authority to carry out essential community development and housing activities with COUNTY in order to permit COUNTY to secure and administer Community Development Block Grant and HOME Investment Partnership funds as an Urban County within the provisions of the Act as herein defined and, therefore, in consideration of the mutual covenants and promises contained in this Agreement, the parties mutually agree to the following terms and conditions. COOPERATING UNIT acknowledges that by the execution of this Agreement that it understands that it: May not also apply for grants under the State CDBG Program from appropriations for fiscal years during which it is participating in the Urban County Program; and 2. May not participate in a HOME Consortium except through the Urban County. 3. May not receive a formula allocation under the Emergency Solutions Grants (ESG) Program except through the Urban County. I. DEFINITIONS The definitions contained in 42 U.S.C. 5302 of the Act and 24 CFR §570.3 of the Regulations are incorporated herein by reference and made a part hereof, and the terms defined in this section have the meanings given them: A. "Act" means Title I ofthe Housing and Community Development Act of 1974, as amended, (42 U.S.C. 5301 et seq.). B. "Activity" means a CDBG - funded activity eligible under Title I of the Housing and Community Development Act of 1974, as amended. Example: single family rehab activity. C. "Annual Program" means those combined activities submitted by cooperating units to COUNTY for CDBG funding as part of the Consolidated Plan. D. "Consolidated Plan" means the document bearing that title or similarly required statements or documents submitted to HUD for authorization to expend the annual grant amount and which is developed by the COUNTY in conjunction with COOPERATING UNITS as part of the Community Development Block Grant Program. E. "Cooperating Unit(s)" means any city or town in Hennepin County that has entered into a cooperation agreement that is identical to this Agreement, as well as Hennepin County, which is a party to each Agreement. F. "HUD" means the United States Department of Housing and Urban Development. G. "Metropolitan City" means any city located in whole or in part in Hennepin County which is certified by HUD to have a population of 50,000 or more people. H. "Program" means the HUD Community Development Block Grant Program as defined under Title I of the Housing and Community Development Act of 1974, as amended. I. "Program Income" means gross income received by the recipient or a subrecipient directly generated from the use of CDB G. J. "Regulations" means the rules and regulations promulgated pursuant to the Act, including but not limited to 24 CFR Part 570. K. "Urban County" means the entitlement jurisdiction within the provisions of the Act and includes the suburban Hennepin County municipalities which are signatories to this Agreement. II. PURPOSE The purpose of this Agreement is to authorize COUNTY and COOPERATING UNIT to cooperate to undertake, or assist in undertaking, community renewal and lower income housing assistance activities and authorizes COUNTY to carry out these and other eligible activities for the benefit of eligible recipients who reside within the corporate limits of the COOPERATING UNIT which will be funded from annual Community Development Block Grant, Emergency Solutions Grants (ESG) Programs and HOME appropriations for the Federal Fiscal Years 2015, 2016 and 2017 and from any program income generated from the expenditure of such funds. III. AGREEMENT The initial term of this Agreement is for a period commencing on October 1, 2014 and terminating no sooner than the end of the program year covered by the Consolidated Plan for the basic grant amount for the Fiscal Year 2017, as authorized by HUD, and for such additional time as may be required for the expenditure of funds granted to the County for such period. Prior to the end of the initial term and the end of each subsequent qualification period, the COUNTY, as the lead agency of the URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, shall provide a written notice to the COOPERATING UNIT of their right not to participate in a subsequent qualification period. The written notice will provide the COOPERATING UNIT a minimum thirty (30) day period to submit a written withdrawal. If the COOPERATING UNIT does not submit to the COUNTY a written withdrawal during the notice period, this Agreement shall be automatically extended for a subsequent three -year qualifying period. This Agreement must be amended by written agreement of all parties to incorporate any future changes necessary to meet the requirements for cooperation agreements set forth in the Urban County Qualification Notice applicable for the year in which the next qualification of the County is scheduled. Failure by either party to adopt such an amendment to the Agreement shall automatically terminate the Agreement following the expenditure of all CDBG and HOME funds allocated for use in the COOPERATING UNIT's jurisdiction. This Agreement shall remain in effect until the CDBG, HOME and ESG funds and program income received (with respect to activities carried out during the three -year qualification period, and any successive qualification periods under agreements that provide for automatic renewals) are expended and the funded activities completed. COUNTY and COOPERATING UNIT cannot terminate or withdraw form this Agreement while it remains in effect. Notwithstanding any other provision of this Agreement, this Agreement may be terminated at the end of the program period during which HUD withdraws its designation ofthe COUNTY as an Urban County under the Act. This Agreement shall be executed by the appropriate officers of COOPERATING UNIT and COUNTY pursuant to authority granted them by their respective governing bodies, and a copy of the authorizing resolution and executed Agreement shall be filed promptly by the COOPERATING UNIT in the Hennepin County Department of Housing, Community Works and Transit so that the Agreement can be submitted to HUD by July 25, 2014. COOPERATING UNIT and COUNTY shall take all actions necessary to assure compliance with the urban county's certifications required by Section 104(b) of the Title I of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964; the Fair Housing Act, and affirmatively furthering fair housing. COOPERATING UNIT and COUNTY shall also take all actions necessary to assure compliance with Section 109 of Title I of the Housing and Community Development Act of 1974 (which incorporates Section 504 of the Rehabilitation Act Of 1973 and the Age Discrimination Act of 1975), and other applicable laws. IV. ACTIVITIES COOPERATING UNIT agrees that awarded grant funds will be used to undertake and carry out, within the terms of this Agreement, certain activities eligible for funding under the Act. The COUNTY agrees and will assist COOPERATING UNIT in the undertaking of such essential activities by providing the services specified in this Agreement. The parties mutually agree to comply with all applicable requirements of the Act and the Regulations and other relevant Federal and/or Minnesota statutes or regulations in the use of basic grant amounts. Nothing in this Article shall be construed to lessen or abrogate the COUNTY's responsibility to assume all obligations of an applicant under the Act, including the development of the Consolidated Plan, pursuant to 24 CFR Part 91. COOPERATING UNIT further specifically agrees as follows: A. COOPERATING UNIT will, in accord with a COUNTY- established schedule, prepare and provide to the COUNTY, in a prescribed form, requests for the use of Community Development Block Grant Funds consistent with this Agreement, program regulations and the Urban Hennepin County Consolidated Plan. B. COOPERATING UNIT acknowledges that, pursuant to 24 CFR §570.501(b), it is subject to the same requirements applicable to subrecipients, including the requirement for a written Subrecipient Agreement set forth in 24 CFR §570.503. The Subrecipient Agreement will cover the implementation requirements for each activity funded pursuant to this Agreement and shall be duly executed with and in a form prescribed by the COUNTY. C. COOPERATING UNIT acknowledges that it is subject to the same subrecipient requirements stated in paragraph B above in instances where an agency other than itself is undertaking an activity pursuant to this Agreement on behalf of COOPERATING UNIT. In such instances, a written Third Party Agreement shall be duly executed between the agency and COOPERATING UNIT in a form prescribed by COUNTY. D. COOPERATING UNITS shall expend all funds annually allocated to activities pursuant to the Subrecipient Agreement. All funds not expended pursuant to the terms of the Subrecipient Agreement will be relinquished to the COUNTY and will be transferred to a separate account for reallocation on a competitive request for proposal basis at the discretion of the COUNTY where total of such funds is $100,000 or greater. Amounts less than $100,000 shall be allocated by COUNTY to other existing activities consistent with timeliness requirements and Consolidated Plan goals. E. COUNTY and COOPERATING UNITS shall expend all program income pursuant to this Agreement as provided below: Program income from housing rehabilitation activities administered by the COUNTY will be incorporated into a pool at the discretion of the COUNTY. The pool will be administered by COUNTY and will be used for housing rehabilitation projects located throughout the entire Urban County. When possible, COUNTY will give priority to funding housing rehabilitation projects within the COOPERATING UNIT where the program income was generated. Funds expended in this manner would be secured by a Repayment Agreement/Mortgage running in favor of the COUNTY. Program income generated by certain COOPERATING UNITS that administer their own housing rehabilitation activities may be retained by the COOPERATING UNIT at its discretion; however, such COOPERATING UNITS will be bound by the conditions of D.2., above. Only COOPERATING UNITS that were administering their own activities pursuant to the Joint Cooperation Agreement pertaining to the HUD fiscal years 2012 -2014 will be eligible to retain their program income. 2. COUNTY reserves the option to recapture program income generated by non - housing rehabilitation activities if said funds have not been expended within twelve (12) months of being generated. These funds shall be transferred to a separate account for reallocation on a competitive request for proposal basis administered by COUNTY or, where the total of such funds does not exceed $100,000, shall be reallocated by COUNTY to other existing activities consistent with timeliness requirements and Consolidated Plan goals. F. COOPERATING UNITS are encouraged to undertake joint activities involving the sharing of funding when such action furthers the goals of the Consolidated Plan and meets the expenditure goals. G. If COUNTY is notified by HUD that it has not met the performance standard for the timely expenditure of funds at 24 CFR 570.902(a) and the COUNTY entitlement grant is reduced by HUD according to its policy on corrective actions, then the basic grant amount to any COOPERATING UNIT that has not met its expenditure goal shall be reduced accordingly. H. COOPERATING UNIT will take actions necessary to assist in accomplishing the community development program and housing goals, as contained in the Urban Hennepin County Consolidated Plan. I. COOPERATING UNIT shall ensure that all activities funded, in part or in full by grant funds received pursuant to this Agreement, shall be undertaken affirmatively with regard to fair housing, employment and business opportunities for minorities and women. It shall, in implementing all programs and/or activities funded by the basic grant amount, comply with all applicable Federal and Minnesota Laws, statutes, rules and regulations with regard to civil rights, affirmative action and equal employment opportunities and Administrative Rule issued by the COUNTY. J. COOPERATING UNIT that does not affirmatively further fair housing within its own jurisdiction or that impedes action by COUNTY to comply with its fair housing certification shall be prohibited from receiving CDBG funding for any activities. K. COOPERATING UNIT shall participate in the citizen participation process, as established by COUNTY, in compliance with the requirements of the Housing and Community Development Act of 1974, as amended. L. COOPERATING UNIT shall reimburse COUNTY for any expenditure determined by HUD or COUNTY to be ineligible. M. COOPERATING UNIT shall prepare, execute, and cause to be filed all documents protecting the interests of the parties hereto or any other party of interest as may be designated by the COUNTY. N. COOPERATING UNIT has adopted and is enforcing: 1. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and 2. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such nonviolent civil rights demonstrations within its jurisdiction. O. COOPERATING UNIT shall not sell, trade, or otherwise transfer all or any portion of grant funds to another metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives CDBG funds in exchange for any other funds, credits or non- Federal considerations, but must use such funds for activities eligible under Title I of the Act. COUNTY further specifically agrees as follows: A. COUNTY shall prepare and submit to HUD and appropriate reviewing agencies, on an annual basis, all plans, statements and program documents necessary for receipt of a basic grant amount under the Act. B. COUNTY shall provide, to the maximum extent feasible, technical assistance and coordinating services to COOPERATING UNIT in the preparation and submission of a request for funding. C. COUNTY shall provide ongoing technical assistance to COOPERATING UNIT to aid COUNTY in fulfilling its responsibility to HUD for accomplishment of the community development program and housing goals. D. COUNTY shall, upon official request by COOPERATING UNIT, agree to administer local housing rehabilitation activities funded pursuant to the Agreement, provided that COUNTY shall receive Twelve percent (12 %) ofthe allocation by COOPERATING UNIT to the activity as reimbursement for costs associated with the administration of COOPERATING UNIT activity. E. COUNTY may, at its discretion and upon official request by COOPERATING UNIT, agree to administer, for a possible fee, other activities funded pursuant to this Agreement on behalf of COOPERATING UNIT. F. COUNTY may, as necessary for clarification and coordination of program administration, develop and implement Administrative Rules consistent with the Act, Regulations, HUD administrative directives, and administrative requirements of COUNTY. V. ALLOCATION OF BASIC GRANT AMOUNTS Basic grant amounts received by the COUNTY under Section 106 of the Act shall be allocated as follows: A. Planning and administration costs are capped to 20 percent of the sum of grant plus program income that is received during the program year. During the term of this Agreement the COUNTY anticipates planning and administrative retainage of thirteen to fifteen percent (13 -15 %);included in this administrative amount is funding for annual county -wide Fair Housing activities. B. The balance of the basic grant amount shall be made available by COUNTY to COOPERATING UNITS in accordance with the formula stated in part C and the procedure stated in part D of this section utilizing U.S. Census Bureau data. The allocation is for planning purposes only and is not a guarantee of funding. C. Allocation of funding will be based upon a formula using U.S. Census Bureau data that bears the same ratio to the balance of the basic grant amount as the average of the ratios between: 1. The population of COOPERATING UNIT and the population of all COOPERATING UNITS. The extent of poverty in COOPERATING UNIT and the extent of poverty in all COOPERATING UNITS. The extent of overcrowded housing by units in COOPERATING UNIT and the extent of overcrowded housing by units in all COOPERATING UNITS. 4. In determining the average of the above ratios, the ratio involving the extent of poverty shall be counted twice. D. Funds will be made available to communities utilizing the formula specified in C of this Section in the following manner: All COOPERATING UNITS with aggregate formula percentages of greater than three and one half percent (3.5 %) of the total using the procedure in part C. of this section will receive funding allocations in accordance with the COUNTY formula allocations. 2. COOPERATING UNITS with aggregate formula percentages of three and one half percent (3.5 %) or less of the total using the procedure in part C. of this section will have their funds consolidated into a pool for award in a manner determined by COUNTY on a competitive request for proposal basis. Only the COUNTY and COOPERATING UNITS whose funding has been pooled will be eligible to compete for these funds. E. The COUNTY shall develop these ratios based upon data to be furnished by HUD. The COUNTY assumes no duty to gather such data independently and assumes no liability for any errors in the data furnished by HUD. F. In the event COOPERATING UNIT does not request a funding allocation, or a portion thereof, the amount not requested shall be made available to other participating communities, in a manner determined by COUNTY. VI. METROPOLITAN CITIES Any metropolitan city executing this Agreement shall defer their entitlement status and become part of Urban Hennepin County. This agreement can be voided ifthe COOPERATING UNIT is advised by HUD, prior to the completion of the re- qualification process for fiscal years 2015 -2017, that it is eligible to become a metropolitan city and the COOPERATING UNIT elects to take its entitlement status. If the agreement is not voided on the basis of the COOPERATING UNIT's eligibility as a metropolitan city prior to June 20, 2014, the COOPERATING UNIT must remain a part of the COUNTY program for the entire three -year period of the COUNTY qualification. VII. OPINION OF COUNSEL The undersigned, on behalf of the Hennepin County Attorney, having reviewed this Agreement, hereby opines that the terms and provisions of the Agreement are fully authorized under State and local law and that the COOPERATING UNIT has full legal authority to undertake or assist in undertaking essential community development and housing assistance activities, specifically urban renewal and publicly- assisted housing. Assistant County Attorney VIII. HENNEPIN COUNTY EXECUTION The Hennepin County Board of Commissioners having duly approved this Agreement on , 2014, and pursuant to such approval and the proper County official having signed this Agreement, the COUNTY agrees to be bound by the provisions herein set forth. COUNTY OF HENNEPIN, STATE OF MINNESOTA APPROVED AS TO FORM: By: Chair of its County Board Assistant County Attorney And: Date: Assistant/Deputy /County Administrator Attest: Deputy /Clerk of the County Board RECOMMENDED FOR APPROVAL Assistant County Administrator - Public Works Date: Department, Housing, Community Works and Transit Date: 8 IX. COOPERATING UNIT EXECUTION COOPERATING UNIT, having signed this Agreement, and the COOPERATING UNIT'S governing body having duly approved this Agreement on , 2014, and pursuant to such approval and the proper city official having signed this Agreement, COOPERATING UNIT agrees to be bound by the provisions of this Joint Cooperation Agreement. CITY OF By: Its Mayor And: Its City Manager ATTEST: CITY MUST CHECK ONE: The City is organized pursuant to: Plan A _ Plan B Charter i11) i/ Contract No. ^ ^ �541140805X-XXX JOINT COOPERATION AGREEMENT URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM THIS AGREEMENT made and entered into by and between the COUNTY OF HENNEPIN, State of Minnesota, hereinafter referred to as "COUNTY," A -2400 Government Center, Minneapolis, Minnesota, 55487, and the cities executing this Master Agreement, each hereinafter respectively referred to as "COOPERATING UNIT," said parties to this Agreement each being governmental units ofthe State of Minnesota, and made pursuant to Minnesota Statutes, Section 471.59:_ WITNESSETH: COOPERATING UNIT and COUNTY agree that it is desirable and in the interests of their citizens that COOPERATING UNIT shares its authority to carry out essential community development and housing activities with COUNTY in order to permit COUNTY to secure and administer Community Development Block Grant and HOME Investment Partnership funds as an Urban County within the provisions of the Act as herein defined and, therefore, in consideration ofthe mutual covenants and promises contained in this Agreement, the parties mutually agree to the following terms and conditions. COOPERATING UNIT acknowledges that by the execution of this Agreement that it understands that it: 1. May not also apply for grants under the State CDBG Program from appropriations for fiscal years during which it is participating in the Urban County Program; and 2. May not participate in a HOME Consortium except through the Urban County. 3. May not receive a formula allocation under the Emergency Solutions Grants (ESG) Program except through the Urban County. I. DEFINITIONS The definitions contained in 42 U&GU.S.C. 5302 of the Act and 24 CFR §570.3 of the Regulations are incorporated herein by reference and made a part hereof, and the terms defined in this section have the meanings given them: A. "Act" means Title I ofthe Housing and Community Development Act of 1974, as amended, (42 U.S.C. 5301 et seq.). B. "Activity" means a CDBG - funded activity eligible under Title I of the Housing and Community Development Act of 1974, as amended. Example: single family rehab activity. C. "Annual Program" means those combined activities submitted by cooperating units to COUNTY for CDBG funding as part of the Consolidated Plan. D. "Consolidated Plan" means the document bearing that title or similarly required statements or documents submitted to HUD for authorization to expend the annual grant amount and which is developed by the COUNTY in conjunction with COOPERATING UNITS as part of the Community Development Block Grant Program. E. "Cooperating Unit(s)" means any city or town in Hennepin County that has entered into a cooperation agreement that is identical to this Agreement, as well as Hennepin County, which is a party to each Agreement. F. "HUD" means the United States Department of Housing and Urban Development. G. "Metropolitan City" means any city located in whole or in part in Hennepin County which is certified by HUD to have a population of 50,000 or more people. H. "Program" means the HUD Community Development Block Grant Program as defined under Title I of the Housing and Community Development Act of 1974, as amended. I. "Program Income" means gross income received by the recipient or a subrecipient directly generated from the use of CDBG. J. 'Regulations" means the rules and regulations promulgated pursuant to the Act, including but not limited to 24 CFR Part 570. K. "Urban County" means the entitlement jurisdiction within the provisions of the Act and includes the suburban Hennepin County municipalities which are signatories to this Agreement. 11. PURPOSE The purpose of this Agreement is to authorize COUNTY and COOPERATING UNIT to cooperate to undertake, or assist in undertaking, community renewal and lower income housing assistance activities and authorizes COUNTY to carry out these and other eligible activities for the benefit of eligible recipients who reside within the corporate limits of the COOPERATING UNIT which will be funded from annual Community Development Block Grant Emergency Solutions Grants (ESG) Programs and HOME appropriations for the Federal Fiscal Years 2009,, z_.v^-�r^v2015. 2016 and 24"2017 and from any program income generated from the expenditure of such funds. III. AGREEMENT The initial term of this Agreement is for a period commencing on October 1, 248$2014 and terminating no sooner than the end of the program year covered by the Consolidated Plan for the basic grant amount for the Fiscal Year 28442017, as authorized by HUD, and for such additional time as may be required for the expenditure of funds granted to the County for such period. Prior to the end of the initial term and the end of each subsequent qualification period, the COUNTY, as the lead agency of the URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, shall provide a written notice to the COOPERATING UNIT of their right not to participate in a subsequent qualification period. The written notice will provide the COOPERATING UNIT a minimum thirty (30) day period to submit a written withdrawal. If the COOPERATING UNIT does not submit to the COUNTY a written withdrawal during the notice period, this Agreement shall be automatically extended for a subsequent three -year qualifying period. This Agreement must be amended by written agreement of all parties to incorporate any future changes necessary to meet the requirements for cooperation agreements set forth in the Urban County Qualification Notice applicable for the year in which the next qualification of the County is scheduled. Failure by either party to adopt such an amendment to the Agreement shall automatically terminate the Agreement following the expenditure of all CDBG and HOME funds allocated for use in the COOPERATING UNIT's jurisdiction. This Agreement shall remain in effect until the CDBG. HOME and ESG funds and prog am income received (with respect to activities carried out during the three -year qualification period, and any successive qualification periods under agreements that provide for automatic renewals are expended and the funded activities completed. COUNTY and COOPERATING UNIT cannot terminate or withdraw form this Agreement while it remains in effect. Notwithstanding any other provision of this Agreement, this Agreement may be terminated at the end ofthe program period during which HUD withdraws its designation ofthe COUNTY as an Urban County under the Act. This Agreement shall be executed by the appropriate officers of COOPERATING UNIT and COUNTY pursuant to authority granted them by their respective governing bodies, and a copy of the authorizing resolution and executed Agreement shall be filed promptly by the COOPERATING UNIT in the Hennepin County Department of Housing, Community Works and Transit, and in ne even+ shall, so that the Agreement can be €fled late f than i.me 30 2008 ubmitted to HUD by July 25, 2014. COOPERATING UNIT and COUNTY shall. take all actions necessary to assure compliance with the applieapXs, rban county's certifications required by Section 104(b) of the Title I of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964; the Fair Housing Act, and affirmatively furthering fair housing. COOPERATING UNIT and COUNTY shall also take all actions necessary to assure compliance with Section 109 of Title I of the Housing and Community Development Act of 1974; (which incorporates Section 504 ofthe Rehabilitation Act Of 1973 and the Age Discrimination Act of 1975) and other applicable laws. IV. ACTIVITIES COOPERATING UNIT agrees that awarded grant funds will be used to undertake and carry out, within the terms of this Agreement, certain activities eligible for funding under the Act. The COUNTY agrees and will assist COOPERATING UNIT in the undertaking of such essential activities by providing the services specified in this Agreement. The parties mutually agree to comply with all applicable requirements ofthe Act and the Regulations and other relevant Federal and/or Minnesota statutes or regulations in the use of basic grant amounts. Nothing in this Article shall be construed to lessen or abrogate the COUNTY's responsibility to assume all obligations of an applicant under the Act, including the development of the Consolidated Plan, pursuant to 24 CFR Part 91. COOPERATING UNIT further specifically agrees as follows: A. COOPERATING UNIT will, in accord with a COUNTY- established schedule, prepare and provide to the COUNTY, in a prescribed form, requests for the use of Community Development Block Grant Funds consistent with this Agreement, program regulations and the Urban Hennepin County Consolidated Plan. B. COOPERATING UNIT acknowledges that, pursuant to 24 CFR §570.501(b), it is subject to the same requirements applicable to subrecipients, including the requirement for a written Subrecipient Agreement set forth in 24 CFR §570.503. The Subrecipient Agreement will cover the implementation requirements for each activity funded pursuant to this Agreement and shall be duly executed with and in a form prescribed by the COUNTY. C. COOPERATING UNIT acknowledges that it is subject to the same subrecipient requirements stated in paragraph B above in instances where an agency other than itself is undertaking an activity pursuant to this Agreement on behalf of COOPERATING UNIT. In such instances, a written Third Party Agreement shall be duly executed between the agency and COOPERATING UNIT in a form prescribed by COUNTY. D. COOPERATING UNITS shall expend all funds annually allocated to activities pursuant to " A • 'tl.: eighteen (1 O) at s of the „tho ..t: by 14UD te expend the basie grant ametmt—.the Subrecipient Agreement. 1. With eaeb annual pfeg....m COOPERATING TiATiT_Ssshall ....1... it tto the Cv:,n`:TY aefi :t.. L. .1 1 for- the «let: and wEpenditur-e of funds within eighteen (1 Q) ffienths. t:..:t:es .1' a`he -e - RGLTf7C2LTAfC- rJI'�GGGRZI'ig Ol'fS Funds fer- aefivities not expended within eighteen (18) nienths may be r-eeaptufed at t • .1' fi ftl. GO NTV .....1 dist.ibeted by COUNTY as p .ided r ..:« D. A Limited ited written r-equest enly where the auther-ized aefivity has been initiated and/or- i� subjeet to ft 3. A d t t an aiintial by GOOPE A T-Pi - UNITS may be appr-eved 13.. pregr-afn COUNTY NTV t fifteen (1 G) ..t1.s after- initial ffindina has been a ed enly ...L.en the appfevah Funds net expended within the six (6) men4h ex4ensien per-ied may be r-eeaptur-ed 4-1_A 1l founds Meeaptur -ea by GOUn` All funds not expended pursuant to the terms of the Subrecipient Agreement will be relinquished to the COUNTY and will be transferred to a separate account for reallocation on a competitive request for proposal basis at the discretion of the COUNTY where total of such funds is $100,000 or greater. Amounts less than $100,000 shall be allocated by COUNTY to other existing activities consistent with timeliness requirements and Consolidated Plan goals. E. COUNTY and COOPERATING UNITS shall expend all program income pursuant to this Agreement as provided below: 1. Program income from housing rehabilitation activities administered by the COUNTY will be incorporated into a pool at the discretion of the COUNTY. The pool will be administered by COUNTY and will be used for housing rehabilitation projects located throughout the entire Urban County. When possible, COUNTY will give priority to funding housing rehabilitation projects within the COOPERATING UNIT where the program income was generated. Funds expended in this manner would be secured by a Repayment Agreement/Mortgage running in favor of the COUNTY. Program income generated by certain COOPERATING UNITS that administer their own housing rehabilitation activities may be retained by the COOPERATING UNIT at its discretion; however, such COOPERATING UNITS will be bound by the conditions of D.2., above. Only COOPERATING UNITS that were administering their own activities pursuant to the Joint Cooperation Agreement pertaining to the HUD fiscal years 2086- 2M2012 -2014 will be eligible to retain their program income. COUNTY reserves the option to recapture program income generated by non - housing rehabilitation activities if said funds have not been expended within twelve (12) months of being generated. These funds shall be transferred to a separate account for reallocation on a competitive request for proposal basis administered by COUNTY or, where the total of such funds does not exceed $100,000, shall be reallocated by COUNTY to other existing activities consistent with timeliness requirements and Consolidated Plan goals. F. COOPERATING UNITS are encouraged to undertake joint activities involving the sharing of funding when such action furthers the goals of the Consolidated Plan and meets the expenditure goals. G. If COUNTY is notified by HUD that it has not met the performance standard for the timely expenditure of funds at 24 CFR 570.902(a) and the COUNTY entitlement grant is reduced by HUD according to its policy on corrective actions, then the basic grant amount to any COOPERATING UNIT that has not met its expenditure goal shall be reduced accordingly. H. COOPERATING UNIT will take actions necessary to assist in accomplishing the community development program and housing goals, as contained in the Urban Hennepin County Consolidated Plan. I. COOPERATING UNIT shall ensure that all activities funded, in part or in full by grant funds received pursuant to this Agreement, shall be undertaken affirmatively with regard to fair housing, employment and business opportunities for minorities and women. It shall, in implementing all programs and/or activities funded by the basic grant amount, comply with all applicable Federal and Minnesota Laws, statutes, rules and regulations with regard to civil rights, affirmative action and equal employment opportunities and Administrative Rule issued by the COUNTY. J. COOPERATING UNIT that does not affirmatively further fair housing within its own jurisdiction or that impedes action by COUNTY to comply with its fair housing certification shall be prohibited from receiving CDBG funding for any activities. K. COOPERATING UNIT shall participate in the citizen participation process, as established by COUNTY, in compliance with the requirements of the Housing and Community Development Act of 1974, as amended. L. COOPERATING UNIT shall reimburse COUNTY for any expenditure determined by HUD or COUNTY to be ineligible. M. COOPERATING UNIT shall prepare, execute, and cause to be filed all documents protecting the interests of the parties hereto or any other party of interest as may be designated by the COUNTY. N. COOPERATING UNIT has adopted and is enforcing: A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and 2. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such nonviolent civil rights demonstrations within its jurisdiction. O. COOPERATING UNIT shall not sell, trade, or otherwise transfer all or any portion of grant funds to another metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives CDBG funds in exchange for any other funds. credits or non - Federal considerations, but must use such funds for activities eligible under Title I of the Act. COUNTY further specifically agrees as follows: A. COUNTY shall prepare and submit to HUD and appropriate reviewing agencies, on an annual basis, all plans, statements and program documents necessary for receipt of a basic grant amount under the Act. B. COUNTY shall provide, to the maximum extent feasible, technical assistance and coordinating services to COOPERATING UNIT in the preparation and submission of a request for funding. C. COUNTY shall provide ongoing technical assistance to COOPERATING UNIT to aid COUNTY in fulfilling its responsibility to HUD for accomplishment of the community development program and housing goals. D. COUNTY shall, upon official request by COOPERATING UNIT, agree to administer local housing rehabilitation activities funded pursuant to the Agreement, provided that COUNTY shall receive Twelve percent (12 %) of the allocation by COOPERATING UNIT to the activity as reimbursement for costs associated with the administration of COOPERATING UNIT activity. E. COUNTY may, at its discretion and upon official request by COOPERATING UNIT, agree to administer, for a possible fee, other activities funded pursuant to this Agreement on behalf of COOPERATING UNIT. F. COUNTY may, as necessary for clarification and coordination ofprogram administration, develop and implement Administrative Rules consistent with the Act, Regulations, HUD administrative directives, and administrative requirements of COUNTY. V. ALLOCATION OF BASIC GRANT AMOUNTS Basic grant amounts received by the COUNTY under Section 106 of the Act shall be allocated as follows: A. ° Planning and administration costs are capped to 20 percent of the sum of grant plus program income that is received during the program year. During the term of this Agreement the COUNTY anticipates planning and administrative retainage of thirteen to fifteen percent (13 -15 %• ):included in this administrative amount is funding for annual county -wide Fair Housing activities. B. The balance of the basic grant amount shall be made available by COUNTY to COOPERATING UNITS in accordance with the formula stated in part C and the procedure stated in part D of this section utilizing U.S. Census Bureau data pfevided by HUD. The allocation is for planning purposes only and is not a guarantee of funding. C. Allocation of funding will be based upon a formula using U.S. Census Bureau data supplied D that bears the same ratio to the balance of the basic grant amount as the average of the ratios between: 1. The population of COOPERATING UNIT and the population of all COOPERATING UNITS. 2. The extent of poverty in COOPERATING UNIT and the extent of poverty in all COOPERATING UNITS. The extent of overcrowded housing by units in COOPERATING UNIT and the extent of overcrowded housing by units in all COOPERATING UNITS. 4. In determining the average of the above ratios, the ratio involving the extent of poverty shall be counted twice. D. Funds will be made available to communities utilizing the formula specified in C of this Section in the following manner: 1. All COOPERATING UNITS with aggregate formula percentages of greater than three and one half percent (3.5 %) of the total using the procedure in part C. of this section will receive funding allocations in accordance with the COUNTY formula allocations. 2. COOPERATING UNITS with aggregate formula percentages of three and one half percent (3.5 %) or less of the total using the procedure in part C. of this section will have their funds consolidated into a pool for award in a manner determined by COUNTY on a competitive request for proposal basis. Only the COUNTY and COOPERATING UNITS whose funding has been pooled will be eligible to compete for these funds. E. The COUNTY shall develop these ratios based upon data to be furnished by HUD. The COUNTY assumes no duty to gather such data independently and assumes no liability for any errors in the data furnished by HUD. F. In the event COOPERATING UNIT does not request a funding allocation, or a portion thereof, the amount not requested shall be made available to other participating communities, in a manner determined by COUNTY. VI. METROPOLITAN CITIES Any metropolitan city executing this Agreement shall defer their entitlement status and become part of Urban Hennepin County. This agreement can be voided if the COOPERATING UNIT is advised by HUD, prior to the completion of the re- qualification process for fiscal years 2009 '04+2015 -2017, that it is eligible to become a metropolitan city and the COOPERATING UNIT elects to take its entitlement status. If the agreement is not voided on the basis of the COOPERATING UNIT's eligibility as a metropolitan city prior to july 8, 2008June 20, 2014, the COOPERATING UNIT must remain a part of the COUNTY program for the entire three -year period of the COUNTY qualification. VII. OPINION OF COUNSEL The undersigned, on behalf of the Hennepin County Attorney, having reviewed this Agreement, hereby opines that the terms and provisions of the Agreement are fully authorized under State and local law and that the COOPERATING UNIT has full legal authority to undertake or assist in undertaking essential community development and housing assistance activities, specifically urban renewal and publicly - assisted housing. Assistant County Attorney VIII. HENNEPIN COUNTY EXECUTION The Hennepin County Board of Commissioners having duly approved this Agreement on Miry —6, 2-GN 2014 and pursuant to such approval and the proper County official having signed this Agreement, the COUNTY agrees to be bound by the provisions herein set forth. COUNTY OF HENNEPIN, STATE OF MINNESOTA By: APPROVED AS TO FORM: Chair of its County Board And: Assistant County Attorney Date: Assistant/Deputy /County Administrator Attest: DeputyL Clerk of the County Board RECOMMENDED FOR APPROVAL Assistant County Administrator - Public Works APPROVED AS TO FORM--. Date: Department, Housing, Community Works and Transit Date: M IX. COOPERATING UNIT EXECUTION COOPERATING UNIT, having signed this Agreement, and the COOPERATING UNIT'S governing body having duly approved this Agreement on , 2ON2014, and pursuant to such approval and the proper city official having signed this Agreement, COOPERATING UNIT agrees to be bound by the provisions of this Joint Cooperation Agreement, eentraet A0805 CITY OF By: Its Mayor And: Its City Manager ATTEST: CITY MUST CHECK ONE: The City is organized pursuant to: Plan A Plan B Charter To: Mayor and City Council CoRPO�%`� 1688 Agenda Item #: IV. D. From: David Nelson, Chief of Police Action ❑X Discussion ❑ Date: July 01, 2014 Information ❑ Subject: Resolution No. 2014 -72. Authorizing Joint Powers Agreement With The State of Minnesota - Minnesota Financial Crimes Task Force Action Requested: That the Edina Police Department be authorized to continue its participation with the Minnesota Financial Crimes Task Force (MNFCTF), which is administered by the State of Minnesota. The goal of MNFCTF is to investigate and prosecute identity theft and related financial crimes. INFORMATION /BACKGROUND: The Edina Police Department first partnered with the MNFCTF in 2001. The partnership with the MNFCTF partners Edina officers with local, county, state, and federal law enforcement personnel. Many financial cases involving identity theft and organized criminal groups are seldom restricted to city borders. The MNFCTF has a positive record of prosecuting cases that start locally and become federal cases with national connections. The partnership allows us to work our local cases and also cases discovered anywhere in the United States that lead back to Edina. This Joint Powers Agreement (JPA) allows the Edina Police Department to work these local, regional, and national cases and get financial investigative training funded by the State of Minnesota and Federal Government. The State of Minnesota is the administrator of the Minnesota Financial Crimes Task Force (MNFCTF). ATTACHMENTS: Resolution 2014 -72 City of Edina • 4801 W. 50th St. • Edina, MN 55424 RESOLUTION NO. 2014 -72 AUTHORIZING EXECUTION OF JOINT POWERS AGREEMENT CITY OF EDINA AND STATE OF MINNESOTA WHEREAS, the Edina Police Department has been a member of the Minnesota Financial Crimes Task Force (MNFCTF) since 2001 and worked to investigate and combat financial crimes locally, regionally, and nationally. WHEREAS, this partnership with the State of Minnesota allows the Edina Police Department to work with State and Federal authorities. WHEREAS, as a requirement to continue in this program, the City of Edina must authorize a Joint Powers Agreement between the City of Edina and the State of Minnesota acting through its Department of Public Safety, Bureau of Criminal Apprehension. NOW THEREFORE, BE IT RESOLVED that this Joint Powers Agreement will cover from date of adoption, 2014 — June 30, 2016. BE IT FURTHER RESOLVED that the City Council is now hereby authorizing the City of Edina Mayor, City Manager, and Chief of Police to execute this Joint Powers Agreement on behalf of the Edina Police Department. Adopted this 1st day of July, 2014. Attest: Debra A. Mangen, City Clerk STATE OF MINNESOTA) COUNTY OF HENNEPIN) SS CITY OF EDINA ) CERTIFICATE OF CITY CLERK James B. Hovland, Mayor I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina City Council at its Regular Meeting of QGt9 ,er , 2013 July 1, 2014, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this day of City Clerk From: Dave Nelson, Chief of Police Date: July I, 2014 Subject: Request for Purchase — Legacy Light bars Date Bid Opened or Quote Received: Company: Emergency Automotive Technologies 2755 Geneva Avenue North Oakdale MN 55128 Recommended Quote or Bid: Sole source for this light bar with preemption installed. General Information: • ,`�URPORf'�F9 � 18PP Agenda Item M IV. E The Recommended Bid is Within Budget ❑ Not Within Budget Bid or Expiration Date: Amount of Quote or Bid: $38,018.80 The Edina Police Department's current light bars are ten years old and are at the end of their useful cycle. Replacement of fifteen light bars for marked police vehicles will improve officer visibility and safety. State forfeiture funds will be used for this purchase. City of Edina 4801 W. 50th St. • Edina, MN 55424 �9Zr1A, o e F. 'Lit IHHti To: Mayor and Council Agenda Item #: Revised IV. F. From: Jeff Brown Action ❑X Community Health Administrator Discussion ❑ Date: July 1, 2014 Information ❑ Subject: Resolution No. 2014 -77 Approving Public Health Emergency Preparedness Grant Project Agreement 2014 -2015. Action Requested: Adopt Resolution No. 2014 -77 authorizing the City of Edina to amend the current Public Health Emergency Preparedness Grant Project Agreement with the Minnesota Department of Health (MDH) and receive additional grant funding of $39,198. Information / Background: The City of Edina receives funding from the Minnesota Department of Health for Public Health Emergency Preparedness to continue preparing for response to bioterrorism, infectious diseases, mass dispensing, and other threats to public health. This amendment is the funding mechanism for the July 2014 through June 2015 budget period. The total amount of funding for the budget period is $39,198. This amendment builds upon the activities completed in the previous budget periods, and will address ongoing changes in federal requirements. Funding will be used to carry on progress in achieving operational capacity and implementation of preparedness capabilities in Edina's Public Health operations. As in the past, the grant money will be used specifically to cover costs of the Public Health Emergency Preparedness contract with the City of Bloomington, Edina Health Division staff training, emergency preparedness supplies, and administration of the grant. The City Attorney has reviewed and approved the Amendment. Additional Information / Background: Resolution No. 2014 -77 Minnesota Department of Health Grant Project Agreement Amendment City of Edina • 4801 W. 50,h St. • Edina, MN 55424 RESOLUTION NO 2014 -77 AUTHORIZING THE CITY OF EDINA TO ENTER INTO A PUBLIC HEALTH EMERGENCY PREPAREDNESS GRANT PROJECT AGREEMENT WITH THE MINNESOTA DEPARTMENT OF HEALTH WHEREAS, the STATE, pursuant to Minnesota Statutes 144.0742, is empowered to enter into a contractual agreement for the provision of statutorily prescribed public health services, and WHEREAS, the STATE and the City of Edina have entered into a master grant contract effective January 1, 2009, and WHEREAS, the STATE has entered into an agreement with the Centers of Disease Control and Prevention (CDC) to assist local health departments in demonstrating measurable and sustainable progress toward achieving public health preparedness capabilities and other activities that promote safer and more resilient communities, and implement and carry out the CDC's Public Health Preparedness Capabilities: National Standards for State and Local Planning, and WHEREAS, the City of Edina represents that it is duly qualified and willing to perform the services set forth herein. NOW, THEREFORE, BE IT RESOLVED, by the Edina City Council that the Mayor and the City Manager enter into Public Health Emergency Response Grant Agreement Amendment with the Minnesota Department of Health to successfully complete administrative and programmatic duties contained within this grant agreement. Passed and adopted this 1st day of July 2014. ATTEST: Debra A. Mangen, City Clerk James B. Hovland, Mayor STATE OF MINNESOTA ) COUNTY OF HENNEPIN )SS CITY OF EDINA ) CERTIFICATE OF CITY CLERK I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina City Council at its Regular Meeting of July 1, 2014, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this day of 2014. City Clerk Minnesota Department of Health Grant Project Agreement Amendment Public Health Emergency Preparedness (PHEP) Award (BP3) Purchase Order #: 65467 1 3000015843 +Current Amendment Amount: $39,198 Grant Agreement Start Date: 7/1/2013 +Ori inal Grant Agreement: $ 38,277 Original Grant Agreement Expiration Date:6 /30/2017 +Previous Amendments Total: $ -0- Revised Grant Agreement Expiration Date: Not Applicable =New Total Grant Agreement Amount: $77,475 This GRANT PROJECT AGREEMENT AMENDMENT is by and between the State of Minnesota, through its Commissioner of Minnesota Department of Health (hereinafter "STATE ") and City of Edina Community Health Board 4801 W. 50th St. Edina, MN 55424(hereinafter "GRANTEE "). Recitals The STATE has a grant project agreement with the GRANTEE identified as SWIFT Contract # 65467 1 SWIFT Original PO # 3000015843 ( "Original Grant Project Agreement ") to demonstrate measurable and sustainable progress in the implementation and execution of the CDC's Public Health Preparedness Capabilities: National Standards for State and Local Planning. (hereafter, Preparedness Capabilities). Funding and activities for this agreement authorized under Section 319C of the Public Health Service (PHS) Act as amended by the Pandemic and All- Hazards Preparedness Act of 2006 (PAPHA). If applicable, contingent supplemental emergency response awards are authorized under 317 (a) and 317 (d) of the Public Health Services Act subject to available funding and appropriation requirements and limitations. On March 13, 2013, the President signed into law the Pandemic and All Hazards Preparedness Reauthorization Act (PAPRA) of 2013, this was a critical step in making our nation more resilient to public health emergencies and disasters. The reauthorization recognizes the importance of supporting state and local public health and health care preparedness. PAHPRA continues to emphasize the development of a coordinated national Health Security Strategy and the implementation plan for public health emergency preparedness. PAHPRA modified existing provisions and mandated new activities; accordingly this grant is being amended to provide additional funds for Budget Period 3 (BP3) to continue and enhance the public health preparedness work of the grantee in accordance with federal changes. This Amendment builds upon the activities completed in Budget Period 1 (BPI) and Budget Period 2 (BP2) which were designed to provide a systematic approach to develop, sustain and demonstrate progress toward achieving CDC's Public Health Emergency Preparedness Capabilities. This amendment provides additional federal funding for Budget Period 3 (BP3) based on continuing funding from CDC to address ongoing changes in federal requirements and to carry on progress in achieving the operational capacity and implementation of the preparedness capabilities into the GRANTEE's on -going agency operations. 2. The STATE and the GRANTEE are willing to amend the Original Grant Project Agreement as stated below. Grant Project Agreement Amendment In this Amendment deleted grant project agreement terms will be struck out and the added grant project agreement terms will be underlined. REVISION 1. Clause III CONSIDERATION AND TERMS OF PAYMENT is amended as follows: HE- 01603 -04 (07/09) Project Agreement Amendment Number 2014 -2015 PHEP Budget Period 3 (BP3) To Project Agreement Number SWIFT Contract #65467 1 SWIFT Original PO # 3000015843 Between the Minnesota Department of Health and City of Edina Community Health Board A. Consideration for all services performed by GRANTEE pursuant to this project agreement shall be paid by the STATE as follows: 1. Compensation. The total obligation of the STATE for all compensation and reimbursement to GRANTEE shall not exceed seventy - seven thousand four hundred seven . -five dollars $(387-77,475). Budget Period Award Amounts Each specific Budget Period award is available only for the specific Budget Period in for which it was awarded. Funds remaining and not fully liquidated at the end of each Budget Period will be cancelled and will not be available to the GRANTEE in any subsequent Budget Period. Award Name Budget Period Award Amount Budget Period 2 Budget Period 2 $28,592 PHEP July 1, 2013 -June 30, 2014 Budget Period 2 Budget Period 2 $9,685 CRI July 1, 2013 -June 30, 2014 Budget Period 3 Budget Period 3 $29,198 PHEP July 1, 2014 -June 30, 2015 Funding Cg1pZory 1 Budget Period 3 Budget Period 3 $10,000 CRI July 1, 2014 -June 30, 2015 Budget Period 4 Budget Period 2 4 $ To Be Determined PHEP July 1, 2015 -June 30, 2016 Budget Period 4 Budget Period 2 4 $ To Be Determined CRI July 1, 2015 -June 30, 2016 Budget Period 5 Budget Period 2-5 $ To Be Determined PHEP July 1, 2016 -June 30, 2017 Budget Period 5 Budget Period 2-5 $ To Be Determined CRI I July 1, 2016 -June 30, 2017 B. Terms of Payment is amended as follows: 1. Payments are to be made from federal funds obtained by the State through Section 319C of the PHS Act, as amended by the PAPHA Act amendments thereto. CFDA # 93.974. 069. 2. All financial transactions will be on a reimbursement basis only. 3. Payments shall be made by the STATE promptly after GRANTEE'S presentation of invoices for services performed and acceptance of such services by the STATE'S Authorized Representative pursuant to Clause V, except that the STATE reserves the right not to honor invoices that are submitted more than 30 days after the submission date specified below. 4. Invoices shall be submitted in a form prescribed by the STATE and according to the following schedule: HE- 01603 -04 (07/09) Grant Project Agreement Amendment Page 1 Project Agreement Amendment Number 2014 -2015 PHEP Budget Period 3 (BP3) To Project Agreement Number SWIFT Contract #654671 SWIFT Original PO # 3000015843 Between the Minnesota Department of Health and City of Edina Community Health Board Each Budget Period of this Grant Agreement is subject to the following invoice submission schedule. Invoices and supporting documentation are required to be received at OEP on or before the deadline listed below. Invoice Submission Schedule Invoice Due Invoice Activity Period Deadline for receipt at OEP 1 st Quarter Jul 1 -30 September 30 30- October 31 2nd Quarter October 1- December 31 34-January 31 3rd Quarter January 1- March 31 30 April 30 4th Quarter/ BP Final Invoice April 1- June 30 30 July 31 Except as amended herein, the terms and conditions of the Original Grant Agreement and all previous amendments remain in full force and effect. IN WITNESS WHEREOF, the parties have caused this grant project agreement amendment to be duly executed intending to be bound thereby. APPROVED: 1. GRANTEE 2. STATE AGENCY The Grantee certifies that the appropriate persons(s) have executed the Project Agreement amendment approval and certification that STATE project agreement amendment on behalf of the Grantee as required by funds have been encumbered as required by Minn. Slat. §§ 164.15 and applicable articles, bylaws, resolutions, or ordinances. 16C.05. IM Title: Date: By: Title: Date: Distribution: Agency — Original (fully executed) Grant Project Agreement Amendment Grantee State Authorized Representative I0 Title: Date: (with delegated authority) HE- 01603 -04 (07/09) Grant Project Agreement Amendment Page 2 4 To: MAYOR & COUNCIL From: Debra Mangen City Clerk A, O e` Cn 1888 Agenda Item #: Revised IV. G. Action Discussion ❑ Date: July 1, 2014 Information ❑ Subject: Resolution No. 2014 -74 Appointing Election Judges For August 12, 2014 Primary Action Requested: Adopt Resolution. Information / Background: Minnesota Election Law 204B.21 requires that the governing body of the municipality appoint election judges to administer the polling places at least 25 days before each election. Due to legislative changes the Primary Election will be held August 12, 2014 with Absentee Balloting opened June 27, 2014. In order for Absentee Judges to begin their work in a timely manner we must appoint them at this time. The attached Resolution 2014 -74 lists the persons intended to serve Election Judges and Absentee Judges in alphabetical order. We will be placing five to seven persons in each polling location at the Primary, plus running an Absentee Ballot Board. In addition, we will train alternates to substitute in case others cannot serve. When assigning the judges to a precinct we will maintain the party balance in each precinct and on our absentee board as required by statutes. In addition, this year, Hennepin County will be acting on behalf of the City of Edina as a part of our Absentee Ballot Board so they are named in our appointing resolution. I also ask for the authority to replace or substitute judges as necessary before Election Day. Attachments: Resolution No. 2014 -74 City of Edina • 4801 W. 50th St. • Edina, MN 55424 RESOLUTION NO 2014 -74 APPOINTING PRIMARY ELECTION JUDGES FOR THE AUGUST 12, 2014 PRIMARY WHEREAS, Minnesota Election Law 20413.21 requires that persons serving as election judges be appointed by the Council at least 25 days before the election. BE IT RESOLVED by the Edina City Council that the individuals named on Exhibit A, and on file in the office of the City Clerk be appointed as the City of Edina Primary Election Judges for the August 12, 2014 Primary Election; and BE IT FURTHER RESOLVED the Edina City Council also appoints other individuals and all members appointed to the Hennepin County Absentee Ballot Board as authorized under Minn. Stat. 20413.2 1, subd. 2 under the direction of the Election Manager to serve as members of the Edina Absentee Ballot Board; and BE IT FURTHER RESOLVED that the City Clerk is with this, authorized to make any substitutions or additions as deemed necessary. Passed and adopted by the Edina City Council this I st day of July 2014. Attest Debra A. Mangen, City Clerk James B. Hovland, Mayor EXHIBIT A PRIMARY ELECTION JUDGES 2014 Rita Acker Mary Jo Hasnudeen Beth Montgomery John Alt Cheryl Heley Jon Moon Lisa Batdorf Mary Henderson Gregory Murphy Mary Becker James Higgins Susan Niefeld Sheryl Bertrand Sandra Hoglin Patti Olander Juliet Boemer Alan Hoist Ordell O'Neill Katherine Bradbury Nancy Hopf Norman Owens ZoeAnne Brandberg Judy Hoppe Darla Paulson Adele Brellenthin Terri Hudoba Wain Pearce David Briscoe Myra Hykes Ronald Pfannenstein Kathy Bronner Cecilia Jaisle Betty Pollitt James Burnett Rosemary Jellen Linda Presthus Robert Calgren Suzanne Jiwani Teresa Razidlo Christine Campion Allen Johnson Eric Rehm Linda Cardwell Shirley Johnson Julie Risser Nancy Carlson Grant Johnson Jennifer Roach Cathy Cella Mary Kachan William Rodgers Julie Ann Chatleain Ann R Kapaun Judith Rodgers Marilyn Christiansen Dalia Katz Robert Rohlf Judy Cipolla Katie Kay Luann Rosenthal- Erickson Eileen Cooke Paul Keck Carol Rothe Jack Cracraft Louise Kellams Milagros Rush Marian Cracraft Jessica Kingston Connie Schramm Colleen Crew Mavis Klefsaas Aundria Schreiner Judie Dale Marcia Koester Carol Schultz Byron Dale Janet Kopp Nancy Schwappach Daniel Dauth Julia Kosters Sara Schwiebert Gloria DeBerg Martha Kouatli Marty Sedoff Amy Demarest Hana Koudsi Marion Selid Delpha DeZellar Judy Labonne Michael Skelly Patricia Dill James Landberg Mary Skoy John Dimmock Mary Landberg Joann Skumatz Lisa Domke Karen Lanz Ruth Smith Wendy Donovan Gertrude Lappin Del Smith Frank Drake Karen Leon Cathy Snyder Sheila Duhn Susan Lindsay Mary Stanton Sontrud Duke Bob Lindsey Vivian Steblay Kim Dulas Ellen Loewenberg Jan Stone Emma Eberlein Francis Lorenz, Jr. Philothea Sweet Erika Eberlein Cynthia Loveland Kathryn Thorndyke Bob Fiedler William Lucas Andrea Tiggas Paul Fink Barbara Maeder Donna Tilsner Lisa Flint Linda Maetzold Julie Turnbull John Fossum Robert Mallon Janet Ulvin Suzanne Fuluvaka Boyd Mast Deb Waldin Valerie Geurts Patti Mazzara Donna Wallander Devorah Goldstein Barb McFarlane Jini Washburn George Griffiths Frank McGoldrick Jenny Weber Muza Habeck Susan McKusick Paul Wehrmeister Eugene Haman Joan McMillan Mary Jean Weigel Judith Hansen Marvin Menzel John Weiser Brian Hansen Patricia Merritt Murphy Wayne Wenger Mary Hartupee Nancy Miller George Wu Buddy Hasnudeen Pat Montez Mary Yee To: MAYOR AND CITY COUNCIL From: Chad A. Millner, PE, Director of Engineering Date: July 1, 2014 o �4 N ` YCORPORp`l j IAAA Agenda Item #: IV. H. The Recommended Bid is OX Within Budget ❑ Not Within Budget Subject: Award of Bid - Contract ENG 14 -10 2014 Watermain Improvements Date Bid Opened or Quote Received: Bid or Expiration Date: June 24, 2014 August 25, 2014 Company: Northdale Construction Company, Inc. Recommended Quote or Bid: Northdale Construction Company, Inc. General Information: Amount of Quote or Bid: $933,680.12 $933,680.12 This project will construct a raw water main from Well #15 across Highlands Park to an existing raw water main at Ayrshire Boulevard and Doncaster Way. A second raw water main from Well #9 along Hanson Road to the existing raw watermain at Hansen Road and Vernon Avenue will complete the raw watermain system to water treatment plant #6. These raw water connections are a component of the City of Edina comprehensive water plan. They were originally bid out in 2012 but were delayed at that time due to inadequate funding appropriations. Also included with the 2014 Watermain Improvements project are the 69th Street and York Avenue Watermain Loop, the repair of the Concord Avenue crossing beneath Highway 62, and the installation of a City watermain within Prescott Circle, an area presently serviced by individual well systems. Funding for the projects will be utilized from ENG -13 -05 and UT -10 -01 1 projects from the 2013 though 2017 City of Edina Capital Improvement Plan. A portion of ENG -13 -05 was constructed in 2013 in conjunction with Hennepin County's pavement rehabilitation of Vernon Avenue. UT -10 -01 1 was developed to accomplish the 69th Street and York Avenue Watermain Loop. This project component creates redundancy in the watermain system. It also enhances fire flow availability. The Concord Avenue crossing at Highway 62 and the Prescott Circle watermain were unbudgeted projects. The watermain under TH62 broke this spring. The watermain systems north and south of the highway are back feeding those areas. The repair is needed this year. This was not considered an immediate emergency fix. Prescott Circle was added to the watermain improvements for three reasons. No watermain exists in City of Edina • 4801 W. 50th St. • Edina, MN 55424 REQUEST FOR PURCHASE IN EXCESS OF $20,000 /CHANGE ORDER Page 2 this cul -de -sac today, the fire department has concerns about fire protection at the north end of Prescott Circle, and public works has a pavement rehabilitation project scheduled for later this year. Any residential connections to this watermain will require a water service REC fee of $1,000 per unit. It had been planned to utilize Water Utility General Funds for these two projects but the submitted bid allows these projects to be constructed within available budgeted watermain project funding. The table below shows available funding from the CIP and appropriations for each project component. CIP Project Number CIP Budget Amount Project Components Appropriations ENG- 13 -05 $1,100,000 2013 ENG 13 -9 $188,600 UT -1 -01 1 $150,000 Raw WM Portion of ENG 14 -10 $581,000 Total Budget Amount $1,250,000 69th Street & York Ave WM Loop $145,000 TH62 Crossing $107,000 Prescott Circle WM $102,000 Total Budget Appropriations $1,123,600 Remaining Budget $126,400 Staff recommends awarding the project to Northdale Construction Company, Inc. GAMCENTRAL SVCS \ENG DMPROJECTS \CONTRACTS\2014\ENG 14 -10 2014 Watermain Impr\NDMIN\MISC \Item W.H. ENG 14 -10 RFP.docx City of Edina • 4801 W. 50th St. • Edina, MN 55424 ow e �y •'MGRS f 1w9 • To: MAYOR AND COUNCIL Agenda Item #: IV. I. From: Chad A. Millner, PE, Director of Engineering Action FX Discussion ❑ Date: July 1, 2014 Information ❑ Subject: Release of Public Improvements and Special Assessment Agreements Action Requested: Authorize Mayor and City Clerk to approve attached Release of Public Improvement and Special Assessment Agreements for sanitary sewer and water services for the 2012 Richmond Hills Neighborhood Roadway Reconstruction. Information / Background: For the 2012 Richmond Hills Neighborhood Roadway Reconstruction, residents were required to upgrade their sanitary sewer service line from the mainline to the right -of -way line, and were encouraged to upgrade their water service line. The costs were added to their special assessment by signing a Public Improvement and Special Assessment Agreement. Each agreement was recorded with Hennepin County as a lien against each property. Since the Richmond Hills special assessment was levied in 2013, there is no need to continue with the lien against each property. By removing all the liens now, we avoid delaying the closing on of one of these properties when buyers discover the lien and request a lien release. As stated this past May, we've changed the process and are now approving special assessment agreements by resolution because it allows us to add the costs immediately as pending assessments. Attachments: Release of Public Improvement and Special Assessment Agreements City of Edina • 4801 W. 501h St. • Edina, MN 55424 (Reserved for Recording Data) RELEASE OF PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENTS RECITALS: A. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Richard D. Borland and Lynda L. Lorenz, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated April 14, 2013, and filed for record with the Hennepin County Registrar of Titles on May 20, 2013, as Document No. T05078292 over property legally described as Lot 1 and 2, Stow's Yvonne Terrace, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); B. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Ryan E. Ballinger and Angie E. Ballinger, f /k/a Angie E. McConnell, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated April 23, 2013, and filed for record with the Hennepin County Registrar of Titles on May 20, 2013, as Document No. T05078293 over property legally 171816v1 1 described as Lot 6, Stow's Yvonne Terrace, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement'); C. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Robert E. Fitzsimmons Jr. and Adelyne Fitzsimmons, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated May 7, 2013, and filed for record with the Hennepin County Registrar of Titles on May 20, 2013, as Document No. T05072894 over property legally described as Lot 18, Stow's Yvonne Terrace, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); D. The City has received payment of the special assessments in full for the Special Assessment Agreements identified in Recitals A through C. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: The Special Assessment Agreements fled for record with the Hennepin County Registrar of Titles as listed in Recitals A through C are hereby released. Dated: CITY OF EDINA :• James Hovland, Mayor AND Debra Mangen, City Clerk 171816v1 2 STATE OF MINNESOTA ) )Ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this 1 st day of July, 2014, by James Hovland and Debra Mangen, respectively the Mayor and City Clerk of the City of Edina, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Campbell Knutson Professional Association 1380 Corporate Center Curve, Suite #317 Eagan, Minnesota 55121 (651) 452 -5000 AMP /cjh 171816A 3 (Reserved for Recording Data) RELEASE OF PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENTS RECITALS: A. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and James Ostlund; a single person, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated January 5, 2013, and filed for record with the Hennepin County Registrar of Titles on April 10, 2013, as Document No. T05065258 over property legally described as Lot 6, Block 2, Normandale Court, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); B. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Janice Joshua, a single person, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated October 10, 2012, and filed for record with the Hennepin County Registrar of Titles on April 10, 2013, as Document No. T05065319 over property legally described as Lot 14, Block 2, Richmond Hills, 171816v1 1 Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); C. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Ray Nelson and Sally Dunn, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated July 27, 2012, and filed for record with the Hennepin County Registrar of Titles on April 8, 2013, as Document No. T05064917 over property legally described as Lot 10, Block 2, Richmond Hills, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); D. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Christopher Jones and Kathryn Jones, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated July 2, 2012, and filed for record with the Hennepin County Registrar of Titles on April 3, 2013, as Document No. T05063396 over property legally described as Lot 19, and the West % of Lot 20, Block 1, Richmond Hills, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); E. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Kraig Knutson and Bridget Towey, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated December 13, 2012, and filed for record with the Hennepin County Registrar of Titles on April 3, 2013, as Document No. T05063534 over property legally described as Lot 10, Stow's Yvonne Terrace, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement'); F. The City has received payment of the special assessments in full for the Special Assessment Agreements identified in Recitals A through E. 171816A 2 NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: The Special Assessment Agreements filed for record with the Hennepin County Registrar of Titles as listed in Recitals A through E are hereby released. Dated: CITY OF EDINA. IC _• I.wp STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) James Hovland, Mayor Debra Mangen, City Clerk The foregoing instrument was acknowledged before me this 1 st day of July, 2014, by James Hovland and Debra Mangen, respectively the Mayor and City Clerk of the City of Edina, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Campbell Knutson Professional Association 1380 Corporate Center Curve, Suite #317 Eagan, Minnesota 55121 (651) 452 -5000 AMP /cjh 171816v1 3 (Reserved for Recording Data) RELEASE OF PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENTS RECITALS: A. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Steven Mayer and Susan Meyer, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated July 17, 2012, and filed for record with the Hennepin County Recorder on April 10, 2013, as Document No. A09938061 over property legally described as Lots 1 and 2, Block 2, Westchester Knolls, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement"); B. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Dorene Just and William Just, Jr., husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated May 14, 2012, and filed for record with the Hennepin County Recorder on May 16, 2013, as Document No. A09953935 over property legally described as Lot 7, Nylunds Place, Hennepin 171s16vl 1 County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); C. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and William D. Buss and Shawn M. Buss, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated 1. March 20, 2013, and filed for record with the Hennepin County Recorder on May 20, 2013, as Document No. A09955463 over property legally described as Lot 12, Block 1, Westchester Knolls, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); D. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Mark L. Van Sloun and Janice E. Van Sloun, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated April 27, 2013, and filed for record with the Hennepin County Recorder on May 20, 2013, as Document No. A09955467 over property legally described as Lot 7, Block 1, Westchester Knolls, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); E. The City has received payment of the special assessments in full for the Special Assessment Agreements identified in Recitals A through D. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: The Special Assessment Agreements filed for record with the Hennepin County Recorder as listed in Recitals A through D are hereby released. Dated: CITY OF EDINA IG James Hovland, Mayor 171s16A 2 " , E STATE OF MINNESOTA ) )SS. COUNTY OF HENNEPIN ) Debra Mangen, City Clerk The foregoing instrument was acknowledged before me this l st day of July, 2014, by James Hovland and Debra Mangen, respectively the Mayor and City Clerk of the City of Edina, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Campbell Knutson Professional Association 1380 Corporate Center Curve, Suite #317 Eagan, Minnesota 55121 (651) 452 -5000 AMP /cjh 171816v1 3 (Reserved for Recording Data) RELEASE OF PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENTS RECITALS: A. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Warren D. Snyder and Joann G. Snyder, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated May 12, 2012, and filed for record with the Hennepin County Registrar of Titles on March 28, 2013, as Document No. T05061998 over property legally described as Exhibit A (hereinafter referred to as the "Special Assessment Agreement "); B. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and James Ankeny and Lucinda Winter, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated June 18, 2012, and filed for record with the Hennepin County Registrar of Titles on April 1, 2013, as Document No. T05062561 over property legally described as Exhibit B (hereinafter referred to as the "Special Assessment Agreement "); 171816vl C. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Kurt Knutson and Clara Case, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated June 19, 2012, and filed for record with the Hennepin County Registrar of Titles on April 2, 2013, as Document No. T05063116 over property legally described as Lot 3, Stow's Yvonne Terrace, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement"); D. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Colin Rooney and Abigail Rooney, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated August 9, 2012, and filed for record with the Hennepin County Registrar of Titles on March 18, 2013, as Document No. T05067993 over property legally described as Lot 15, Block 2, Richmond Hills, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); E. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and John Willard Haw II a/k/a John Haw and Beverly H. Haw, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated October 18, 2012, and filed for record with the Hennepin County Registrar of Titles on April 10, 2013, as Document No. T05065314 over property legally described as Lot 16, Block 1, Richmond Hills, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); F. The City has received payment of the special assessments in full for the Special Assessment Agreements identified in Recitals A through E. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 171816v1 2 The Special Assessment Agreements filed for record with the Hennepin County Registrar of Titles as listed in Recitals A through E are hereby released. Dated: CITY OF EDINA IM ►1 STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) James Hovland, Mayor Debra Mangen, City Clerk The foregoing instrument was acknowledged before me this 1 st day of July, 2014, by James Hovland and Debra Mangen, respectively the Mayor and City Clerk of the City of Edina, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Campbell Knutson Professional Association 1380 Corporate Center Curve, Suite #317 Eagan, Minnesota 55121 (651) 452 -5000 AMP /cjh 171816v1 3 EXHIBIT A Lot 12, Stow's Yvonne Terrace, and also that part of the platted lane adjoining said lot now vacated, described as follows; Beginning at the Northeast corner of Lot 12, Stow's Yvonne Terrace, thence Westerly along the Northerly boundary line of said Lot 12, to the Northwest corner thereof, thence Northerly 25 feet measured at right angles to the said Northerly boundary line of said Lot 12, thence Easterly at right angles to the point of intersection with the Westerly boundary line with the street named Yvonne Terrace, thence Southerly against the Westerly boundary line of said street to point of beginning. EXHIBIT B The South 104.75 feet of the East 150 feet of the South %4 Government Lot 2, Section 33, Township 117, Range 21, Hennepin County, Minnesota except the East 30 feet and the South 30 feet thereof, said 104.75 feet being measured along a line parallel with the East line of said Lot 2 and said 150 feet being measured along a line parallel with the South line thereof. 171s16vl 4 (Reserved for Recording Data) RELEASE OF PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENTS RECITALS: A. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and DeEtta Goodmanson, a single person, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated October 8, 2012, and filed for record with the Hennepin County Recorder on March 14, 2013, as Document No. A09929367 over property legally described as Lot 2, Block 2, Edina Park, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); B. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Gregory H. Keane and Susan M. Keane, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated January 28, 2013, and filed for record with the Hennepin County Recorder on April 2, 2013, as Document No. A09934981over property legally described as Lot 13, Nylunds Place, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); 171816v1 C. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Peter S. Bils and Tiffany G. Bils, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated May 25, 2012, and filed for record with the Hennepin County Recorder on April 2, 2013, as Document No. A09935043 over property legally described as Lot 12, except the Westerly 1 and % feet thereof, and the Westerly 1 and % feet of Lot 11, Block 1, Edina Park, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); D. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Patrick Huber and Margaret Huber, husband and wife, (hereinafter referred to as "Property Owners ") entered'into a Public Improvement and Special Assessment Agreement dated July 18, 2012, and filed for record with the Hennepin County Recorder on April 2, 2013, as Document No. A09935044 over property legally described as East 50 feet of Lot 21 and the West 50 feet of Lot 22, Block 1, Edina Park, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); E. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Judith Forker and Thomas Forker, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated June 25, 2012, and filed for record with the Hennepin County Recorder on April 2, 2013, as Document No. A09935045 over property legally described as Lot 14, Nylund's Place, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); F. The City has received payment of the special assessments in full for the Special Assessment Agreements identified in Recitals A through E. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: The Special Assessment Agreements filed for record with the Hennepin County Recorder 171816v1 2 as listed in Recitals A through E are hereby released. Dated: CITY OF EDINA AND STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) James Hovland, Mayor Debra Mangen, City Clerk The foregoing instrument was acknowledged before me this 1 st day of July, 2014, by James Hovland and Debra Mangen, respectively the Mayor and City Clerk of the City of Edina, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Campbell Knutson Professional Association 1380 Corporate Center Curve, Suite #317 Eagan, Minnesota 55121 (651) 452 -5000 AMP /cjh 171s16vl 3 (Reserved for Recording Data) RELEASE OF PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENTS RECITALS: A. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Renn eta Barr and Frank Barr, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated July 11, 2012, and filed for record with the Hennepin County Registrar of Titles on March 19, 2013, as Document No. T0509212 over property legally described as Lot 7, Block 2, Richmond Hills, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); B. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Christopher M. Johnson and Christine J. Johnson f/k/a Christine J. Frank, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated June 17, 2012, and filed for record with the Hennepin County Registrar of Titles on July 29, 2013, as Document No. 705101357 over 171816A property legally described as Lot 12, Block 1, Richmond Hills, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); C. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Morgan S. Brown & Susan M. Brown, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated February 5, 2013, and filed for record with the Hennepin County Registrar of Titles on March 14, 2013, as Document No. T05058653 over property legally described as Lot 4, Block 1, Normandale Court, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); D. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Jeffrey T. Mayer & Barbara A. Meyer, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated May 4, 2012, and filed for record with the Hennepin County Registrar of Titles on March 18, 2013, as Document No. T05058881 over property legally described as Lot 11, Stows Yvonne Terrace, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); E. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Loretta G. Knab, a single person, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated July 10, 2012, and filed for record with the Hennepin County Registrar of Titles on March 28, 2013, as Document No. T05061912 over property legally described as Lot: 21 and the East V2 of Lot 20, Bloch 1, Richmond Hills, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); F. The City has received payment of the special assessments in full for the Special 171816v1 2 Assessment Agreements identified in Recitals A through E. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: The Special Assessment Agreements filed for record with the Hennepin County Registrar of Titles as listed in Recitals A through E are hereby released. Dated: CITY OF EDINA AND STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) James Hovland, Mayor Debra Mangen, City Clerk The foregoing instrument was acknowledged before me this 1 st day of July, 2014, by James Hovland and Debra Mangen, respectively the Mayor and City Clerk of the City of Edina, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Campbell Knutson Professional Association 1380 Corporate Center Curve, Suite 4317 Eagan, Minnesota 55121 (651) 452 -5000 AMP /cjh 171816vl 3 (Reserved for Recording Data) RELEASE OF PUBLIC IMPROVEMENT AND SPECIAL ASSESSMENT AGREEMENTS RECITALS: A. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Sumner Adam Musolf and Jennifer Irene Musolf, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated July 2, 2012, and filed for record with the Hennepin County Recorder on March 19, 2013, as Document No. A09930208 over property legally described as Lot 25, Block 1, Edina Park, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); B. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Lori A. Sandvig, a single person, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated May 3, 2012, and filed for record with the Hennepin County Recorder on March 19, 2013, as Document No. A09930209 over property legally described as Lot 8, Nylunds Place Edina, Hennepin County, 171816A Minnesota (hereinafter referred to as the "Special Assessment Agreement "); C. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Alissa Movern and Matthew Movern, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated May 11, 2012, and filed for record with the Hennepin County Recorder on March 19, 2013, as Document No. A09930210 over property legally described as West 45 feet of Lot 1 and the East 41.44 feet of Lot 2, "Nylunds Place ", Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); D. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Todd Peterson and Mary Peterson, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated October 10, 2012, and filed for record with the Hennepin County Recorder on March 14, 2013, as Document No. A09929377 over property legally described as Lot 5, Block 2, Westchester Knolls, Hennepin County, Minnesota (hereinafter referred to as the "Special Assessment Agreement "); E. The City of Edina, a Minnesota municipal corporation (hereinafter referred to as "City "), and Kristin Moquist and Christopher Moquist, husband and wife, (hereinafter referred to as "Property Owners ") entered into a Public Improvement and Special Assessment Agreement dated July 12, 2012, and filed for record with the Hennepin County Recorder on March 14, 2013, as Document No. A09929464 over property legally described as Exhibit A (hereinafter referred to as the "Special Assessment Agreement "); F. The City has received payment of the special assessments in full for the Special Assessment Agreements identified in Recitals A through E. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: 171816v1 2 The Special Assessment Agreements filed for record with the Hennepin County Recorder as listed in Recitals A through E are hereby released. Dated: CITY OF EDINA C. AND STATE OF MINNESOTA ) )ss. COUNTY OF HENNEPIN ) James Hovland, Mayor Debra Mangen, City Clerk The foregoing instrument was acknowledged before me. this 1 st day of July, 2014, by James Hovland and Debra Mangen, respectively the Mayor and City Clerk of the City of Edina, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public THIS INSTRUMENT WAS DRAFTED BY: Campbell Knutson Professional Association 1380 Corporate Center Curve, Suite #317 Eagan, Minnesota 55121 (651) 452 -5000 AMP /cjh 171816v1 3 EXHIBIT A The West twenty -five (25) feet of Lot Ten (10), Block One (1), and Lot Eleven (11), except the West One and a half (1 '/2) feet thereof, Block One (1) Edina Park, according to the map or plat thereof on file and of record in the office of the County Recorder in and for said County of Hennepin, State of Minnesota. 171816v 4 A, �1 oeh U) 0 • ,��RPORI`'TgO • 1968 To: MAYOR & COUNCIL Agenda Item #: IV. J From: Debra Mangen Action Z City Clerk Discussion ❑ Date: July 1, 2014 Information ❑ Subject: Ordinance No. 2014 -07 Amending Chapter 26 Of The Edina City Code Concerning Petty Misdemeanors Action Requested: Adopt Ordinance No. 2014 -07 including waiver of second reading. Information / Background: At the last City Council meeting, Council directed staff to prepare an ordinance amendment that would make a violation of Edina City Code Chapter 26 a petty misdemeanor. The attached ordinance has been prepared for consideration. Attachments: Ordinance No. 2014 -07 City of Edina • 4801 W. 50th St. • Edina, MN 55424 ORDINANCE NO. 2014 -07 AN ORDINANCE AMENDING CHAPTER 26 OF THE EDINA CITY CODE CONCERNING PETTY MISDEMEANORS THE CITY OF EDINA ORDAINS: Section 1. Chapter 26, Article 10 of the Edina City Code is amended by adding Section 26 -284 to read as follows: Sec. 26 -284. Petty Misdemeanor. Any violation of Section 26 -283 shall be a petty misdemeanor punishable as provided in Section 1 -18. Section 2. This ordinance is effective immediately upon its passage and publication. First Reading: July 1, 2014 Second Reading: Waived Published: July 10, 2014 Attest Debra A. Mangen, City Clerk James B. Hovland, Mayor To: MAYOR AND CITY COUNCIL From: Chad A. Millner, PE, Director of Engineering Date: July I, 2014 w9�A11� o e �N.. VJ �-A ;�A� > �0 • CORPOR -" -FO • 1888 Agenda Item #: IV. K. The Recommended Bid is x❑ Within Budget ❑ Not Within Budget Subject: Change Order - Contract ENG 14 -4 Birchcrest B Neighborhood Roadway Improvements Date Bid Opened or Quote Received: Company: Palda & Sons, Inc. Recommended Quote or Bid: Approval of Change Order Bid or Expiration Date: Amount of Quote or Bid: Completion Date Change General Information: Please recall the City awarded this contract to Palda and Sons on April 22, 2014. This project includes the roadways of Birchcrest Drive, Clover Ridge, Normandale Road, Porter Lane, Roberts Place, Rolf Avenue, Tingdale Avenue, Valley View Road, Wilryan Avenue, West 60th Street, and West 62nd Street. Also note Palda and Sons is the same contractor completing the Bredesen Park D & Countryside F Neighborhood Roadway Improvements where watermain issues were discovered that substantially increased the scope of that project. CenterPoint Energy began gas main and service line replacements last fall in the neighborhood. Those installations are nearing completion right now. CenterPoint's work delayed Palda and Sons from starting construction right away this summer. The record level precipitation thus far in 2014 has made construction operations difficult. Contractors and subcontractors are concerned about completing work due to the continued wet weather. Palda and Sons is a reputable contractor that has met contract obligations in the past with the City. They have concerns about meeting the City's expectations for this specific street reconstruction project. Due to the additional work in the Bredesen Park D & Countryside F Neighborhood Project, the wet weather, and the delay associated with CenterPoint Energy work, we recommend delaying completion of this project until 2015. All work will occur in 2015 associated with the City's project. All assessments will be levied one year later than previous stated. This would occur in the fall of 2016. CenterPoint is required to restore boulevard areas this year and install bituminous patches in the street where they excavated for gas main replacement work. City of Edina • 4801 W. 50th St. • Edina, MN 55424 REQUEST FOR PURCHASE IN EXCESS OF $20,000 /CHANGE ORDER Page 2 • Staff recommends approval of this change order to change the completion date to October 16, 2015 from October 15, 2014. Attachments: GAPMCENTRAL SVCS \ENG DIV\PROJECTS \CONTRACTS\2014 \ENG 14 -4 Birchcrest B\ADMIN\MISC \Item IV. K. Change Order - Contract ENG 14 -4 City of Edina • 4801 W. 501h St. • Edina, MN 55424 4,9�N�,j� 0 �• •,�'C�Ii pt7R �•"CY`, feet, Item #: IV. L. Action Discussion ❑ Date: July 1, 2014 Information ❑ Subject: Resolution No. 2014 -75, Authorizing Minnesota Department of Employment and Economic Development Grant Application For Pentagon Park South Action Requested: Adopt Resolution. Information / Background: The developer of the Pentagon Park sites continues to seek support from redevelopment agencies to fill in funding gaps associated with complete redevelopment of the 43 -acre site. The costs of redevelopment are very high and participation by local, regional and state agencies will be necessary to make this ambitious and transformative project feasible. It is anticipated that the developer will apply to the Department of Employment and Economic Development (DEED) for a Redevelopment Grant to fund approximately $1,000,000 of demolition and related site work. This grant application is necessary to initiate demolition of the mostly- vacant six -story office building with single story wings on the south side of West 77 Street. As with most grant applications, the City serves as the applicant and conduit between the State of Minnesota and the developer. All out -of- pocket costs related to the grant application are borne by the developer. The City granted preliminary zoning approval for the site in March 2014 and executed a TIF Redevelopment Agreement in May 2014. The TIF agreement authorizes up to $54 million in TIF Notes to support the entire site, including the South Parcels. This DEED program provides incentive funding to encourage job creation through the redevelopment of sites that suffer from obsolescence and high vacancy. This competitive grant program will accept applications on August 1, 2014. A resolution of support from the City is required as part of the application package. The strong potential for job growth and tax base enhancement coupled with the recent approvals and agreements with the City make this grant application highly competitive for DEED funding. Attachments: Resolution No. 2014 -75 City of Edina • 4801 W. 50th St. • Edina, MN 55424 RESOLUTION NO. 2014 -7S AUTHORIZING MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT GRANT APPLICATION FOR PENTAGON PARK SOUTH BE IT RESOLVED by the City Council of the City of Edina, Minnesota, as follows: WHEREAS, the City of Edina is a statutory city eligible to apply for grant funding; and WHEREAS, the State of Minnesota Department of Employment and Economic Development is soliciting requests for grant applications to further redevelopment and employment goals; and WHEREAS, the City of Edina has identified Pentagon Park South as a project that satisfies the Redevelopment Grant purpose and criteria; and WHEREAS, the Pentagon Park South site suffers from a lack of investment by previous ownership and an exceptionally high vacancy rate; and WHEREAS, it is apparent that the property's condition and value will continue to decline until it is properly repositioned and that the site appears unable to be returned to a highest and best use without grant assistance; and WHEREAS, the City of Edina, the Edina Housing and Redevelopment Authority and Pentagon Revival, LLC have entered into a Redevelopment Agreement dated May 20, 2014 whereby the City and Authority have agreed to issue TIF Notes to provide gap financing for certain eligible expenses necessary to return the site to productive use. BE IT RESOLVED that the City of Edina act as the legal sponsor for project contained in the Redevelopment Grant Program to be submitted on August I, 2014 and that Mayor James B. Hovland is hereby authorized to apply to the Department of Employment and Economic Development for funding of this project on behalf of the City of Edina. BE IT FURTHER RESOLVED that the City of Edina has the legal authority to apply for financial assistance, and the institutional, managerial, and financial capability to ensure adequate project administration. BE IT FURTHER RESOLVED that the sources and amounts of the local match identified in the application are committed to the project per the terms of the May 20, 2014 Redevelopment Agreement. BE IT FURTHER RESOLVED that if the Pentagon Park South project fails to substantially provide the public benefits listed in the application within five years from the date of the grant award, the City of Edina may be required to repay 100 percent of the awarded grant per Minn. Stat. 1 16J.575 Subd. 4. BE IT FURTHER RESOLVED that the City of Edina has not violated any Federal, State or local laws pertaining to fraud, bribery, graft, kickbacks, collusion, conflict of interest or other unlawful or corrupt practice. BE IT FURTHER RESOLVED that upon approval of its application by the state, the City of Edina may enter into an agreement with the State of Minnesota for the above referenced project(s), and that the City of Edina certifies that it will comply with all applicable laws and regulation as stated in all contract agreements. NOW, THEREFORE BE IT FINALLY RESOLVED that the Mayor and the Clerk are hereby authorized to execute such agreements as are necessary to implement the project on behalf of the applicant. Adopted by the Edina City Council this I st day of July, 2014. Attest: Debra A. Mangen, City Clerk James B. Hovland, Mayor STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) SS CITY OF EDINA ) CERTIFICATE OF CITY CLERK I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby certify that the attached and foregoing City Council Minutes is a true and correct copy of the Resolution duly adopted by the Edina City Council at its regular meeting of July I, 2014, and as recorded in the Minutes of said regular meeting. WITNESS, my hand and seal of said City this day of 2014. Debra A. Manger, City Clerk 5UII.UOJ UOI.}pI.UJOfU/ uoi4a4uasaad Iaap VN a4np 4aNDad ON ❑ Naua4S PaaqDi8 ff!.Iaqs A4unoD uldauuaH 'b"/1 W311 VQN3DV 1� k I From: John Wallin, Finance Director J tcl �n , E � yO '� J• 11 �Y1RF'OLiA��� • 18811 i Item #: VII. A. Action Discussion ❑ Date: July 1, 2014 Information ❑ Subject: Resolution No. 2014 -73 Authorizing The Sale and Issuance Of Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project) Series 2014 Action Requested: Adopt Resolution No. 2014 -73 Authorizing The Sale and Issuance Of Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project) Series 2014 Information / Background: Yorktown Continental, LP (the "Borrower "), a limited - purpose entity, proposes to acquire and rehabilitate the existing 264 -unit Yorktown Continental apartment building located at 7151 York Avenue South. The Borrower is requesting that the City give approval to the issuance of up to $26,500,000 in bonds to finance a portion of the cost of the project. Other sources of financing for the approximately $64,000,000 project include various sources of taxable financing and low- income housing tax credit equity. Final approval of the project and bond issuance by the City following the public hearing at the City Council's last meeting requires the review of documents and the passage of Resolution 2014 -73. Representatives from Yorktown Continental will be at the Council meeting to discuss the project and the financing. The attached resolution and various documents as drafted by Dorsey & Whitney gives authorization for the issuance of Housing Revenue Bonds on behalf of Yorktown Continental, LP for the proposed project at 7151 York Avenue South. The Bonds will be special, limited obligations of the City and will be payable solely from the revenues pledged to the payment thereof. No holder of any Bond will ever have the right to compel any exercise of the taxing power of the City to pay the Bonds, or the interest thereon, nor to enforce payment thereon against any property of the City, except money payable by the Borrower to the City and pledged to the payment of the Bonds. The City is authorized by Minnesota Statutes, Chapter 462C, to issue the Bonds to finance multifamily housing developments such as the Development. ATTACHMENT: Resolution 2014 -73 Assignment of Mortgage Loan Agreement Between the City of Edina and Yorktown Continental, LP Series 2014A Loan Agreement Between the City of Edina and Yorktown Continental, LP Series 2014B Combination Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement Regulatory Agreement Between the City of Edina, U. S. Bank National Assn., and Yorktown Continental, LP Trust Indenture Between the City of Edina and U.S. Bank National Assoc., Series 2014A Indenture of Trust Between the City of Edina and U.S. Bank National Assoc., Series 2014B City of Edina • 4801 W. 50th St. • Edina, MN 55424 CERTIFICATION OF MINUTES RELATING TO TO THE ISSUANCE OF HOUSING REVENUE BONDS PURSUANT TO MINNESOTA STATUTES, CHAPTERS 462A AND 462C ON BEHALF OF YORKTOWN CONTINENTAL, LP Issuer: City of Edina, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting held on July 1, 2014, at 7:00 o'clock P.M., at the City Hall. Councilmembers present: Councilmembers absent: Documents Attached: Minutes of said meeting (pages): 1 through RESOLUTION NO. 2014-73 RESOLUTION AUTHORIZING THE SALE AND ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS ( YORKTOWN CONTINENTAL, LP PROJECT), SERIES 2014; ESTABLISHING THE SECURITY THEREFOR AND AUTHORIZING THE EXECUTION OF DOCUMENTS I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certifying that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. 2014. WITNESS my hand officially as such recording officer this day of , Debra Mangen, City Clerk RESOLUTION AUTHORIZING THE SALE AND ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS (YORKTOWN CONTINENTAL, LP PROJECT), SERIES 2014; ESTABLISHING THE SECURITY THEREFOR AND AUTHORIZING THE EXECUTION OF DOCUMENTS BE IT RESOLVED by the City Council of the City of Edina, Minnesota (the "City "), as follows: Section 1. Recitals. 1.01. The City has by resolutions adopted May 20, 2014 and June 17, 2014, given preliminary approval to the issuance of its Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014 in a principal amount not to exceed $26,500,000 (the "Bonds ") for the purpose of making a loan to Yorktown Continental, LP, a Minnesota limited partnership (the `Borrower "). 1.02. Draft forms of the following documents relating to the Bonds have been prepared and submitted to this Council and are hereby directed to be filed with the City Manager: (a) a Loan Agreement with respect to each series of the Bonds proposed to be entered into by the City and the Borrower; (b) an Indenture of Trust with respect to each series of the Bonds (together, the "Indenture ") proposed to be entered into with respect to the Bonds by the City and the trustee thereunder (the "Trustee "); (c) a Bond Purchase Agreement proposed to be entered into with respect to the Bonds by the City, the Borrower and Dougherty & Company LLC (the "Underwriter "); (d) a Regulatory Agreement between the City, the Borrower and the Trustee; (e) a Combination Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement from the Borrower to the City; (f) an Assignment of Mortgage from the City to the Trustee (g) an Official Statement or other offering document (the "Official Statement ") to be used in connection with the offer and sale of the Bonds by the Underwriter. Section 2. Findings. It is hereby found, determined and declared that: -2- (a) It is desirable that the Bonds be issued by the City upon the terms set forth in this resolution and the Indenture, under the provisions of which the City grants to the Trustee under the Indenture a security interest in certain revenues and payments to be received by the City under the Loan Agreement as security for the payment of the principal of, premium, if any, and interest on the Bonds. (b) The payments required to be made to the Trustee pursuant to the Loan Agreement are fixed, and are required to be revised from time to time as necessary, so as to produce income and revenue sufficient to provide for prompt payment of principal of and interest on all Bonds issued under the Indenture when due, and the Loan Agreement also provides that the Borrower is required to continue to pay all expenses of the operation and maintenance of the Project, including, but without limitation, adequate insurance thereon and insurance against all liability for injury to persons or property arising from the operation thereof, and all taxes and special assessments levied upon or with respect to the site of the Project and payable during the term of the Loan Agreement. (c) The execution and delivery of the documents referred to in Section 1.02 (together with all such other documents as are necessary in connection with the Bonds, the "Bond Documents ") and all other acts and things required under the Constitution and laws of the State of Minnesota to make the Bond Documents and the Bonds valid and binding special, limited obligations in accordance with their terms, are authorized by Minnesota Statutes, Chapters 462A and 462C. Section 3. Authorization and Approval of Bond Documents. The City is hereby authorized to issue the Bonds to provide funds, to be used, with other available funds, to finance the Project and pay costs of issuance of the Bonds, and to pledge and assign the Loan Agreement and the loan repayments due thereunder, all as provided in the Documents. It is acknowledged that the purchase price of the Bonds, the principal amount of the Bonds, the initial reoffering prices of the Bonds, the maturity schedule of the Bonds, the provisions for redemption of the Bonds and the initial interest rate on the Bonds have not been determined as of the date of adoption of this resolution and are not reflected in the Indenture, the Loan Agreement or the Bond Purchase Agreement. The Mayor and the City Manager are hereby authorized to approve: (1) the purchase price of the Bonds; (2) the principal amount of the Bonds (as hereinafter defined); provided that the aggregate principal amount of the Bonds is not in excess of $26,500,000; (3) the reoffering prices of the Bonds; (4) the maturity schedule of the Bonds; (5) the provisions for redemption of the Bonds; and (6) the interest rates on the Bonds. The approval of such officers of the terms of the Bonds shall be conclusively presumed by the execution of the Bond Purchase Agreement by said officers. The forms of the Bond Documents and the Bonds are approved, subject to such modifications as are deemed appropriate and approved by the Mayor and City Manager, within the limitations provided in the immediately preceding paragraph, which approval shall be conclusively evidenced by execution of the Bond Documents by the Mayor and the City -3- Manager. Copies of all the documents shall be delivered, filed or recorded as provided therein. The Mayor and the City Manager are also authorized and directed to execute such other instruments as may be required to give effect to the transactions herein contemplated. Section 4. Official Statement. The City hereby consents to the use of the Official Statement by the Underwriter in connection with the offer and sale of the Bonds to potential investors. The City has consented to the distribution of the Official Statement, but did not prepare the Official Statement, and has not reviewed the financial disclosures of the Borrower or approved any information or statements contained in the Official Statement or the Appendices thereto and assumes no responsibility for the sufficiency, completeness or accuracy of the same. The City Manager is authorized to deem the Official Statement "final" as of its date for purposes of SEC Rule 15c2 -12. Section 5. The Bonds. 5.01. In anticipation of the receipt of the loan repayments from the Borrower, the City shall proceed forthwith to issue the Bonds in the form and upon the terms set forth in the Indenture or established pursuant to this resolution. 5.02. The Mayor and the City Manager are authorized and directed to prepare and execute the Bonds as prescribed herein and in the Indenture and to deliver them to the Trustee, together with a certified copy of this resolution, the other documents required in the Indenture, and such other certificates, documents and instruments as may be appropriate to effect the transactions herein contemplated. The Trustee is hereby appointed authenticating agent for the Bonds pursuant to Minnesota Statutes, Section 475.55, Subdivision 1. Section 6. Absence of Officers. In the absence or disability of the Mayor, any of the documents authorized by this resolution to be approved and executed by the Mayor may be so approved and executed by the acting Mayor. In the absence or disability of the City Manager, any of the documents authorized by this resolution to be approved and executed by the City Manager may be so approved and executed by the person designated as acting City Manager or by such other officer of the City who, in the opinion of the City Attorney, may execute such documents. Section 7. Authentication of Proceedings. The Mayor, the City Manager and other officers of the City are authorized and directed to furnish to the Underwriter and bond counsel certified copies of all proceedings and records of the City relating to the Bonds, and such other affidavits and certificates as may be required to show the facts relating to the legality and marketability of the Bonds as such facts appear from the books and records in the officers' custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements of fact contained therein. -4- Section 8. Limitations of the Ci 's Obligations. Notwithstanding anything contained in the Bonds or the Bond Documents, the Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation, and shall not be payable from nor shall constitute a charge, lien or encumbrance, legal or equitable, upon any funds or any property of the City other than the revenues specifically pledged to the payment thereof pursuant to the Bond Documents, and no holder of the Bonds shall ever have the right to compel any exercise of the taxing power of the City to pay the Bonds or the premium, if any, or interest thereon, or to enforce payment thereof against any property of the City other than those rights and interests of the City which have been pledged to the payment thereof pursuant to the Bond Documents. The agreement of the City to perform the covenants and other provisions contained in this resolution or the Bonds or the Bond Documents shall be subject at all times to the availability of the revenues furnished by the Borrower sufficient to pay all costs of such performance or the enforcement thereof, and the City shall not be subject to any personal or pecuniary liability thereon. Adopted this 1 st day of July, 2014. Mayor City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Councilmember voted in favor thereof: and the following voted against the same: and upon vote being taken thereon, the following whereupon said resolution was declared duly passed and adopted. -5- Draft 6/20/14 ASSIGNMENT OF MORTGAGE Date: July 1, 2014 FOR VALUABLE CONSIDERATION, the City of Edina, Minnesota, a political subdivision under the laws of Minnesota, Assignor, hereby sells, assigns and transfers to, without recourse or warranty, [U.S. Bank National Association, Assignee], the Assignor's interest in the Combination Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement, dated as of July 1, 2014 (the "Mortgage "), executed by Yorktown Continental, LP, a Minnesota limited partnership, as Mortgagor, to the City of Edina, Minnesota, as Mortgagee, and filed for record July _, 2014, as Document Number in the office of the County Recorder of Hennepin County, Minnesota, together with all right and interest in the obligations therein specified and the debt thereby secured. Assignor covenants with Assignee, its successors and assigns, that there is still due and unpaid of the debt secured by the Mortgage the sum of thereon from the date hereof and that Assignor has good right to sell, assign and transfer the same. THIS INSTRUMENT WAS DRAFTED BY Dorsey & Whitney LLP 50 South Sixth Street Minneapolis, Minnesota 55402 (612) 492 -6959 Dollars ($ ), with interest ASSIGNOR THE CITY OF EDINA, MINNESOTA By Mayor By City Manager STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of July, 2014, by Jim Hovland, the Mayor, and Scott Neal, the City Manager, of the City of Edina, Minnesota, on behalf of the City. Notary Public Assignment of Mortgage DRAFT 6/20/14 LOAN AGREEMENT between THE CITY OF EDINA, MINNESOTA as Issuer and YORKTOWN CONTINENTAL, LP as Borrower RELATING TO City of Edina, Minnesota Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014A Dated as of July 1, 2014 With the exception of certain reserved rights, the interest of the City of Edina, Minnesota in this Loan Agreement has been assigned to U.S. Bank National Association, as trustee for the above - referenced bonds. ILIM. (This Index is not a part of the Agreement, but rather is for convenience of reference only.) Page Preamble............................................................................................................ ..............................1 ARTICLE I DEFINITIONS Section 1.1 Use of Defined Terms ........................................................... ..............................2 Section 1.2 Interpretation ......................................................................... ..............................2 Section 1.3 Captions and Headings .......................................................... ..............................2 ARTICLE II REPRESENTATIONS AND COVENANTS Section 2.1 Representations of the Issuer ................................................ ..............................3 Section 2.2 Representations and Covenants of the Borrower .................. ..............................3 ARTICLE III COMPLETION OF THE PROJECT; ISSUANCE OF THE BONDS Section 3.1 Acquisition, Construction, Installation, Equipment and Improvement ...............7 Section 3.2 Plans and Specifications ........................................................ ..............................7 Section 3.3 Issuance of the Bonds; Application of Proceeds ................... ..............................7 Section 3.4 Disbursements from the Project Fund ................................... ..............................8 Section3.5 [HUD Funds .......................................................................... ..............................9 Section 3.6 Borrower Required to Pay Costs in Event Project Fund Insufficient ...............10 Section 3.7 Completion Date .................................................................. .............................10 Section 3.8 Investment of Fund Moneys ................................................ .............................10 Section3.9 Rebate Fund ......................................................................... .............................10 ARTICLE IV LOAN BY ISSUER; REPAYMENT OF THE LOAN; LOAN PAYMENTS AND ADDITIONAL PAYMENTS Section 4.1 Loan Repayment; Delivery of Note ..................................... .............................12 Section 4.2 Additional Payments ............................................................ .............................12 Section 4.3 Place of Payments ................................................................ .............................13 Section 4.4 Obligations Unconditional ................................................... .............................13 Section 4.5 Assignment of Agreement and Issuer Revenues .................. .............................14 ARTICLE V ADDITIONAL AGREEMENTS AND COVENANTS Section 5.1 Right of Inspection ............................................................... .............................15 ii Section 5.2 Borrower to Maintain its Existence; Sales of Assets or Mergers ......................15 Section 5.3 Indemnification .................................................................... .............................15 BindingEffect ...................................................................... .............................28 Section 5.4 Borrower Not to Adversely Affect Exclusion from Gross Income of Execution Counterparts ........................................................ .............................28 Intereston Bonds ................................................................. .............................17 Severability.......................................................................... .............................28 Section 5.5 Affirmative Covenants ......................................................... .............................17 Section 5.6 Additional Indebtedness ....................................................... .............................19 HUD - Required Provisions ................................................... .............................29 Section 5.7 Nature of Business ............................................................... .............................19 Section 5.8 Cooperation in Enforcement of Regulatory Agreement ...... .............................20 Delivery of Reports, Etc ....................................................... .............................30 Section 5.9 Tax Exempt Status of the Bonds .......................................... .............................20 Section5.10 Useful Life ........................................................................... .............................21 Section 5.11 Federal Guarantee Prohibition ............................................. .............................21 Section 5.12 Prohibited Facilities ............................................................. .............................21 Optional Prepayment ................. Section 7.1 Section 7.2 Section 7.3 Section 7.4 Section 7.5 Section 7.6 Section 7.7 Section 8.1 Section 8.2 Section 8.3 Section 8.4 Section 8.5 Section 8.6 Section 8.7 Section 8.8 Section 8.9 Section 8.10 Section 8.11 Section 8.12 Section 8.13 Section 8.14 ARTICLE VI PREPAYMENT ........... .............................22 ARTICLE VII EVENTS OF DEFAULT AND REMEDIES Events of Default ................................ ............................... Remedies on Default .................... ............................... No Remedy Exclusive .................. ............................... Agreement to Pay Attorneys' Fees and Expenses....... NoWaiver .................................... ............................... Notice of Default .......................... ............................... Investor Limited Partner's Cure Rights ...................... ARTICLE VIII MISCELLANEOUS .......................23 ......... .............................24 ......... .............................25 ......... .............................25 ......... .............................25 ......... .............................26 ......... .............................26 Termof Agreement .............................................................. .............................27 Amounts Remaining in Funds .............................................. .............................27 Notices................................................................................. .............................27 Extent of Covenants of the Issuer; No Personal Liability .... .............................27 BindingEffect ...................................................................... .............................28 Amendments and Supplements ............................................ .............................28 Execution Counterparts ........................................................ .............................28 Severability.......................................................................... .............................28 GoverningLaw ..................................................................... .............................28 Non - Recourse Obligations ................................................... .............................28 HUD - Required Provisions ................................................... .............................29 [Limitation on Liability of the Issuer ................................... .............................29 Waiver of Personal Liability ................................................ .............................30 Delivery of Reports, Etc ....................................................... .............................30 iii Signatures...................................................................................................... ............................... S -1 Exhibit A - FORM OF SERIES 2014A NOTE ........................................... ............................... A -1 Exhibit B - BORROWER'S CERTIFICATE TO FHA LENDER AND TRUSTEE .................B -1 Exhibit C - FORM OF COMPLETION CERTIFICATE ............................ ............................0 -1 Exhibit D - FHA LENDER'S CERTIFICATE TO TRUSTEE ........... ............................D -1 Exhibit E— BORROWER'S CERTIFICATE TO TRUSTEE ......................... ............................E -1 iv LOAN AGREEMENT THIS LOAN AGREEMENT (the "Loan Agreement" or "Agreement") is made and entered into as of July 1, 2014 between the City of Edina, Minnesota, a body corporate and politic of the State of Minnesota (the "Issuer "), and Yorktown Continental, LP, a Minnesota limited partnership (the "Borrower "), under the circumstances summarized in the following recitals (the capitalized terms not defined in the recitals and granting clauses being used therein are defined as per Article I hereof). RECITALS WHEREAS, pursuant to and in accordance with the laws of the State of Minnesota (the "State "), including without limitation, Minnesota Statutes, Chapters 462A, 462C and 474A, as amended (the "Act "), the Issuer has determined to issue and sell its Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project) Series 2014A in the aggregate principal amount of $ (the "Bonds ") and to loan the proceeds to be derived from the sale thereof to the Borrower to assist in the financing of the acquisition, rehabilitation, and equipping by Borrower of an existing 264 -unit building containing 262 one - bedroom units and two two - bedroom units as a senior low- income housing project located at 7151 York Avenue South, in Edina, Minnesota (the "Project"); and WHEREAS, the Borrower and the Issuer each have full right and lawful authority to enter into this Agreement and to perform and observe the provisions hereof on their respective parts to be performed and observed. NOW THEREFORE, in consideration of the premises and the mutual representations and agreements hereinafter contained, the Issuer and the Borrower agree as follows (provided that any obligation of the Issuer created by or arising out of this Agreement shall never constitute a general debt of the Issuer or give rise to any pecuniary liability of the Issuer but shall be payable solely out of Issuer Revenues): ARTICLE I DEFINITIONS Section 1.1 Use of Defined Terms In addition to the words and terms defined elsewhere in this Agreement, the words and terms in this Agreement shall have the meanings set forth in the Trust Indenture (the "Indenture "), dated as of the date of this Agreement between the Issuer and U.S. Bank National Association, as Trustee. Section 1.2 Interpretation Any reference herein to the Issuer, to its governing body or to any member or officer of either includes entities or officials succeeding to their respective functions, duties or responsibilities pursuant to or by operation of law or lawfully performing their functions. Any reference to a section or provision of the Constitution of the State or the Act, or to a section, provision or chapter of the Minnesota Statutes or to any statute of the United States of America, includes that section, provision or chapter as amended, modified, revised, supplemented or superseded from time to time, provided that no amendment, modification, revision, supplement or superseding section, provision or chapter shall be applicable solely by reason of this provision, if it constitutes in any way an impairment of the rights or obligations of the Issuer, the Holders, the Trustee or the Borrower under this Agreement. Unless the context indicates otherwise, words importing the singular number include the plural number, and vice versa; the terms "hereof," "hereby," "herein," "hereto," "hereunder" and similar terms refer to this Agreement; and the term "hereafter" means after, and the term "heretofore" means before, the date of delivery of the Bonds. Words of any gender include the correlative words of the other genders, unless the sense indicates otherwise. Section 1.3 Captions and Headings The captions and headings in this Agreement are solely for convenience of reference and in no way define, limit or describe the scope or intent of any Articles, Sections, subsections, paragraphs, subparagraphs or clauses hereof. END OF ARTICLE I PA ARTICLE II REPRESENTATIONS AND COVENANTS Section 2.1 Representations of the Issuer The Issuer represents that (a) it is a body corporate and politic organized and existing under the laws of the State and is authorized to issue the Bonds to finance the Project pursuant to the Act; (b) in authorizing the Project, its purpose is, and in its judgment, the effect thereof will be, to promote the public welfare by providing a multifamily rental housing development within the meaning of the Act and assisting persons within the Issuer to obtain decent, safe and sanitary housing at rentals they can afford, and facilitating the development of rental housing opportunities for residents of the Issuer; (c) it has duly accomplished all conditions necessary to be accomplished by it prior to the issuance and delivery of the Bonds and the execution and delivery of this Agreement, the Indenture and the Regulatory Agreement; (d) it is not in violation of or in conflict with any provisions of the laws of the State that would impair its ability to carry out its obligations contained in this Agreement, the Indenture and the Regulatory Agreement; (e) it has the legal right and is empowered to enter into the transactions contemplated by this Agreement, the Indenture and the Regulatory Agreement; (f) it has duly authorized the execution, delivery and performance of this Agreement, the Indenture and the Regulatory Agreement; and (g) it will do all things in its power in order to maintain its existence or assure the assumption of its obligations under this Agreement, the Indenture and the Regulatory Agreement by any successor public body. The Issuer makes no representation or warranty that the Project will be adequate or sufficient for the purposes of the Borrower. Nothing in this Agreement shall be construed as requiring the Issuer to provide any financing for the Project other than the proceeds of the Loan or to provide sufficient moneys for all of the costs of the Project. Section 2.2 Representations and Covenants of the Borrower The Borrower represents, warrants and covenants that (a) it is a limited partnership duly organized under the laws of the State, duly authorized to conduct its business in the State; 3 (b) it has full power and authority to execute, deliver and perform this Agreement, the Note and the Regulatory Agreement (collectively, the `Borrower Documents ") and to enter into and carry out the transactions on its part contemplated by those documents. The execution, delivery and performance by it of the Borrower Documents do not, and will not, violate any provision of law applicable to the Borrower and do not, and will not, conflict with or result in a default under any agreement or instrument to which the Borrower is a party or by which it is bound. The Borrower Documents have, by proper action, been duly authorized, executed and delivered by the Borrower and all steps necessary have been taken to constitute the Borrower Documents valid and binding obligations of the Borrower; (c) the provision of financial assistance to be made available to it under this Agreement and the commitments therefor made by the Issuer have induced the Borrower to undertake the transactions contemplated by this Agreement; (d) it presently intends to use or operate the Project in a manner consistent with the Act and in accordance with the Regulatory Agreement and knows of no reason why the Project will not be so operated. If, in the future, there is a cessation of that operation, it will use its best efforts to resume that operation or accomplish an alternate use by the Borrower or others approved in writing by the Issuer which will be consistent with the Act and the Regulatory Agreement; •(e) the acquisition and rehabilitation of the Project will be completed in accordance with the Plans and Specifications and the portion of the Project funded with the proceeds of the Combined Bonds will constitute a qualified residential rental project within the meaning of Section 142(d) of the Code and will be operated and maintained in such manner as to conform in all material respects with all applicable zoning, planning, building, environmental and other applicable Governmental regulations and as to be consistent with the Act; (f) the Project will be located entirely within the boundaries of the Issuer; (g) at least 95% of the net proceeds of the Combined Bonds (as defined in Section 150 of the Code) will be used to provide a "qualified residential rental project" (as defined in Section 142(d) of the Code), and the Borrower will not request or authorize any disbursement from the Project Fund pursuant to Section 3.4 hereof, which, if paid, would result in less than 95% of the net proceeds of the Combined Bonds being so used; (h) the costs of issuance financed by the Combined Bonds will not exceed 2% of the proceeds of the Combined Bonds (within the meaning of Section 147(g) of the Code), and the Borrower will not request or authorize any disbursement from the Project Fund pursuant to Section 3.4 hereof or otherwise, which, if paid, would result in more than 2% of the proceeds of the Combined Bonds being so used. Except as permitted by Treasury Regulations 1.148- 6(d)(3)(ii), none of the proceeds of the Combined Bonds will be used for working capital purposes; 4 (i) the proceeds of the Combined Bonds shall be used exclusively to pay costs that (i) are (A) capital expenditures (as defined in Section 1.150 -1(a) of the Code's regulations) and (B) not made for the acquisition of existing property, to the extent prohibited in Section 147(d) of the Code, and (ii) are made exclusively with respect to a "qualified residential rental project" within the meaning of Section 142(d) of the Code so that the Project and the land on which it is located will have been financed fifty percent (50 %) or more by the proceeds of the Combined Bonds for the purpose of complying with Section 42(h)(4)(B) of the Code; 0) upon the execution and delivery thereof by the other parties thereto, each of the Borrower Documents will constitute valid and binding obligations of the Borrower, enforceable against the Borrower in accordance with their respective terms, except as limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws or judicial decisions affecting creditors' rights generally and by judicial discretion in the exercise of equitable remedies; (k) it understands the nature and structure of the Project; that it is familiar with the provisions of all of the documents and instruments relating to the financing of the Project to which it is a party; that it understands the risks inherent* in such transactions, including without limitation the risk of loss of the Project; and that it has not relied on the Issuer for any guidance or expertise in analyzing the financial or other consequences of such financing transactions or otherwise relied on the Issuer in any manner except to issue the Bonds in order to provide funds for the Loan; (1) it intends to hold the Project for its own account, has no current plans to sell and has not entered into any agreement to sell any of the units that comprise the Project. [It is hereby acknowledged, however, that the Borrower's partnership agreement does provide for certain rights of one or more of its partners to acquire the Project, and for the possible acquisition of the Project following the fifteen year tax credit compliance period as identified in the Borrower's partnership agreement, and those provisions shall not result in a breach of this Section 2.2(1);] (m) it shall use its best efforts to cause there to be deposited from time to time in the Collateral Fund, Available Moneys in such amount and at such times as may be necessary to allow the Trustee to disburse funds from the Project Fund pursuant to Section 5.03 of the Indenture upon the Trustee's receipt of a Disbursement Request from the Borrower to pay costs of the Project; (n) in the event the Loan proceeds are not sufficient to complete the acquisition and rehabilitation of the Project and the payment of all costs of issuance of the Bonds, the Borrower will furnish any additional moneys from any source determined by the Borrower as necessary to complete the acquisition and rehabilitation of the Project and pay all cost of issuance of the Bonds; (o) less than 25% of the proceeds of the Combined Bonds will be used to pay or reimburse the Borrower for the cost of land or any interest therein; (p) it has not knowingly taken or permitted to be taken and will not knowingly take or permit to be taken any action which would have the effect, directly or indirectly, of causing interest on any of the Bonds to be included in the gross income of the owners thereof for purposes of federal income taxation; and (q) it shall not take, or knowingly permit or suffer to be taken by the Trustee or any party acting on its behalf, any action with respect to the proceeds of the Combined Bonds which if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the Combined Bonds would have caused the Combined Bonds to be "arbitrage bonds" within the meaning of Section 148(a) of the Code. The Borrower acknowledges that the representations and covenants herein made by the Borrower have been expressly and specifically relied upon by the Issuer in determining to make the Loan to the Borrower and the Loan would not have been made but for such representations and covenants. END OF ARTICLE II 0 ARTICLE III COMPLETION OF THE PROJECT; ISSUANCE OF THE BONDS Section 3.1 Acquisition, Construction, Installation, Equipment and Improvement The Borrower (a) has acquired or is in the process of acquiring the Project site and shall rehabilitate, install, improve and equip the Project with all reasonable dispatch and in substantial accordance with the Plans and Specifications, (b) shall pay when due all fees, costs and expenses incurred in connection with that acquisition, construction, installation, equipping and improving from funds made available therefor in accordance with this Agreement or otherwise, except to the extent being contested in good faith, and (c) shall ask, demand, sue for, levy, recover and receive all those sums of money, debts and other demands whatsoever which may be due, owing and payable under the terms of any contract, order, receipt, writing and instruction in connection with the acquisition, rehabilitation, improvement and equipping of the Project, and shall enforce the provisions of any contract, agreement, obligation, bond or other performance security with respect thereto. It is understood that the Project is that of the Borrower and any contracts made by the Borrower with respect thereto, whether acquisition contracts, construction contracts or otherwise, or any work to be done by the Borrower on the Project are made or done by the Borrower in its own behalf and not as agent or contractor for the Issuer. The Borrower agrees that it will compensate all workers employed in the construction and improvement of the Project as required by law. Section 3.2 Plans and Specifications The Borrower may revise the Plans and Specifications from time to time, provided that no revision shall be made which would change the Project Purposes to purposes other than those permitted by the Act and the Regulatory Agreement. At or prior to the execution and delivery of this Agreement, the Borrower shall provide to the Underwriter evidence acceptable to the Underwriter, in its sole discretion, of the availability of all financing contemplated by the plan of financing for the Project including, without limitation (and without regard to whether the immediate availability of such financing is a condition to undertaking the Project), the equity portion of the financing and all other public and private financing and any interim or bridge financing to be provided in anticipation of the closing of any of the foregoing aspects of the financing therefor. Any material changes in the plan of financing shall be communicated promptly to the Underwriter. Copies of all documents evidencing that financing, and the security therefor, all in form reasonably acceptable to the Underwriter, shall have been provided to the Underwriter. Section 3.3 Issuance of the Bonds; Application of Proceeds To provide funds to make the Loan for purposes of assisting in paying the Project Costs, the Issuer will issue, sell and deliver the Bonds to the Underwriter. The Bonds will be issued pursuant to the Indenture in the aggregate principal amount, will bear interest and will mature as set forth therein. The Borrower hereby approves the terms and conditions of the Indenture and the Bonds, and of the terms and conditions under which the Bonds will be issued, sold and delivered. The proceeds from the sale of the Bonds in the amount of $ shall be loaned to the Borrower and paid over to the Trustee for the benefit of the Borrower and the Holders of the Bonds and deposited as follows: [(a) a sum equal to any accrued interest paid by the Holder shall be deposited in the Bond Fund, and (b) the balance of the proceeds of the Bonds shall be deposited in the Project Fund.] Pending disbursement pursuant to Section 3.4 hereof, the proceeds of the Bonds deposited in the Project Fund, together with any investment earnings thereon, shall constitute a part of the Issuer Revenues assigned by the Issuer to the Trustee as security for the payment of Bond Debt Service Charges as provided in the Indenture. Section 3.4 Disbursements from the Project Fund Subject to the provisions below and so long as no Event of Default hereunder has occurred and is continuing for which the Loan Payments and principal amount of the Bonds has been declared to be immediately due and payable pursuant to Section 7.2 hereof and Section 7.03 of the Indenture, respectively, disbursements from the Project Fund shall be made only to pay any of the following Project Costs: (a) Costs incurred directly or indirectly for or in connection with the acquisition and rehabilitation of the Project, including costs incurred in respect of the Project for preliminary planning and studies; architectural, legal, engineering, accounting, consulting, supervisory and other services; labor, services and materials; and recording of documents and title work. (b) Premiums attributable to any surety bonds and insurance required to be taken out and maintained during the Construction Period with respect to the Project. (c) Taxes, assessments and other governmental charges in respect of the Project that may become due and payable during the Construction Period. (d) Costs incurred directly or indirectly in seeking to enforce any remedy against any contractor or subcontractor in respect of any actual or claimed default under any contract relating to the Project. (e) Subject to Section 2.2(h) hereof, financial, legal, accounting, printing and engraving fees, charges and expenses, and all other such fees, charges and expenses incurred in connection with the authorization, sale, issuance and delivery of the Bonds, including, without limitation, the fees and expenses of the Trustee, the Registrar and any Paying Agent properly incurred under the Indenture that may become due and payable during the Construction Period. (f) Any other costs, expenses, fees and charges properly chargeable to the cost of acquisition and rehabilitation of the Project. (g) Payment of interest on the Bonds during the Construction Period. 8 (h) Payments to the Rebate Fund. Any disbursements from the Project Fund shall be made by the Trustee only as permitted pursuant to Section 5.03 of the Indenture and upon the written request of the Borrower executed by an Authorized Borrower Representative substantially in the form attached hereto as Exhibit B, which requests shall be consecutively numbered and accompanied by invoices or other appropriate documentation supporting the payments or reimbursements requested. No disbursement shall be made by the Trustee upon the basis of any such disbursement request except upon satisfaction of the following conditions and pursuant to the following procedures: (i) An executed Certificate of the FHA Lender substantially in the form attached hereto as Exhibit D, or an executed Certificate of the Borrower substantially in the form attached hereto as Exhibit E, in each case related to the deposit of Available Moneys in to the Collateral Fund for the applicable disbursement request. (ii) An executed Certificate of the Borrower substantially in the form attached hereto as Exhibit B accompanied by a disbursement schedule listing the items for which the disbursement is sought and the total cost of each such item, together with invoices or other appropriate documentation (which may be a copy of an escrow agreement if a disbursement is to be made to an escrow account) for each such item. (iii) All Loan Payments that are then due shall have been paid. Any moneys in the Project Fund remaining after the Completion Date and payment, or provision for payment, in full of the Project Costs, at the direction of the Authorized Borrower Representative, promptly shall be paid into the Bond Fund for payment of Bond Debt Service Charges. Section 3.5 [HUD Funds (a) The Borrower hereby acknowledges that the FHA Lender has determined to fund the FHA Insured Mortgage Loan, on the condition that the FHA Lender originate and service the FHA Insured Mortgage Loan in accordance with the FHA Loan Documents, the FHA Insurance Regulations and the GNMA Regulations, and the FHA Lender has further agreed pursuant to the related FHA Loan Documents to issue the GNMA Securities in accordance with the GNMA Regulations, based on and backed by the FHA Insured Mortgage Loan. (b) The Borrower hereby assigns all right, title and interest of the Borrower in and to the proceeds of the FHA Insured Mortgage Loan to the Trustee. (c) The FHA Lender has agreed to deliver or cause to be delivered to the Trustee the HUD Funds upon its receipt and approval of a requisition from the Borrower requesting an advance under the FHA Insured Mortgage Loan for payments of Project Costs. (d) The amount of the HUD Funds hereby assigned by the Borrower to the Trustee is hereby expressly limited to $ and the Borrower shall have no further interest therein. (e) The Borrower agrees to pay to the FHA Lender all amounts when due under the FHA Insured Mortgage Note and the FHA Insured Mortgage Note and to abide by the provisions of the FHA Loan Documents and the GNMA Documents. (f) The Trustee agrees upon receipt from the FHA Lender of (i) the HUD Funds, and (ii) an approved requisition, from time to time, to disburse amounts from the Project Fund, in the exact same amount of the HUD Funds received by the Trustee from the FHA Lender, to the Borrower for application to the payment of the Project Costs set forth in the approved requisition. (g) The Borrower acknowledges that all HUD Funds requested by the Borrower shall be wired from the FHA Lender directly to the Trustee and disbursed and invested and applied by the Trustee in accordance with the provisions of Section 5.03 of the Indenture.] Section 3.6 Borrower Required to Pay Costs in Event Project Fund Insufficient If moneys in the Project Fund are not sufficient to pay all Project Costs, the Borrower, nonetheless, will complete the Project in substantial accordance with the Plans and Specifications and shall pay all such additional Project Costs from its own funds (or from other public or private financing sources available to the Borrower). The Borrower shall pay all costs of issuing the Bonds. The Borrower shall not be entitled to any reimbursement for any such additional Project Costs or payment of issuance costs from the Issuer, the Trustee or any Holder; nor shall it be entitled to any abatement, diminution or postponement of the Loan Payments. Section 3.7 Completion Date The Borrower shall notify the Issuer and the Trustee of the Completion Date by the delivery of a Completion Certificate signed by the Authorized Borrower Representative substantially in the form of Exhibit C attached hereto. The Completion Certificate shall be delivered as promptly as practicable after the occurrence of the events and conditions referred to in paragraphs (a) through (d) of the Completion Certificate. Section 3.8 Investment of Fund Moneys At the written request of the Borrower, any moneys held as part of the Bond Fund, the Project Fund, the Collateral Fund and the Rebate Fund shall be invested or reinvested by the Trustee in Eligible Investments as provided in Section 5.05 of the Indenture. The Borrower covenants that it will restrict that investment and reinvestment and the use of the proceeds of the Bonds in such manner and to such extent, if any, as may be necessary, after taking into account reasonable expectations at the time of delivery of and payment for the Bonds or subsequent intentional acts, so that the Bonds will not constitute arbitrage bonds under Section 148 of the Code. No provision of this Agreement shall be construed to impose upon the Trustee any obligation or responsibility for compliance with arbitrage regulations. Section 3.9 Rebate Fund The Borrower agrees to make such payments to the Trustee as are required of it under Section 5.09 of the Indenture as well as the expenses of any Independent certified public 10 accounting firm or qualified rebate analyst engaged in accordance with that Section. The obligation of the Borrower to make such payments shall remain in effect and be binding upon the Borrower notwithstanding the release and discharge of the Indenture. END OF ARTICLE III 11 ARTICLE IV LOAN BY ISSUER; REPAYMENT OF THE LOAN; LOAN PAYMENTS AND ADDITIONAL PAYMENTS Section 4.1 Loan Repayment; Delivery of Note Upon the terms and conditions of this Agreement and the Note, the Issuer will make the Loan to the Borrower. In consideration of and in repayment of the Loan, the Borrower shall deliver or cause to be delivered to the Trustee on or before each Loan Payment Date, Loan Payments, equal to the amount necessary to pay Bond Debt Service Charges due on the next Bond Payment Date for each of the Series 2014A Bonds and the Series 2014B Bonds. All such Loan Payments shall be paid to the Trustee in accordance with the terms of the Note for the account of the Issuer and shall be held and disbursed in accordance with the provisions of the Indenture and this Agreement. The Borrower shall be entitled to a credit against the Loan Payments required to be made hereunder, on any date, equal to the amounts, if any, transferred by the Trustee from the Initial Deposit Account, the Project Fund or the Collateral Fund on such date for the payment of Bond Debt Service Charges. To secure the Borrower's performance of its obligations under this Agreement, the Borrower shall execute and deliver, concurrently with the issuance and delivery of the Bonds, the Note and the Regulatory Agreement. Upon payment in full of the Bond Debt Service Charges on any or all of the Bonds, in accordance with the Indenture, whether at maturity, upon acceleration or otherwise, or upon provision for the payment of all other obligations herein and therein having been made in accordance with the provisions of the Indenture, (i) if with respect to less than all of the Bonds then outstanding, an appropriate notation shall be endorsed on the Note evidencing the date and amount of the principal payment (or prepayment) equal to the Bonds so paid, or with respect to which provision for payment has been made, and (ii) with respect to all of the Bonds then outstanding, the Note shall be deemed fully paid, the obligations of the Borrower shall be terminated, and the Note shall be surrendered by the Trustee to the Borrower for cancellation. Unless the Borrower is entitled to a credit under express terms of this Agreement or the Note, all payments on the Note shall be in the full amount required thereunder. The Borrower and the Issuer each acknowledge that neither the Borrower nor the Issuer has any interest in the Bond Fund or the Collateral Fund and any moneys deposited therein shall be in the custody of and held by the Trustee in trust for the benefit of the Holders. Section 4.2 Additional Payments The Borrower shall pay to the Issuer or the Trustee, as the case may be, as Additional Payments hereunder the following: (a) To the Issuer, on the Closing Date, an administrative fee equal to of one percent (_%) of the principal amount of the Bonds. 12 (b) To the Issuer or the Trustee, as the case may be, whether or not an Event of Default has occurred hereunder, as payment for or reimbursement or prepayment of any and all costs, expenses, and liabilities (i) incurred or paid by the Issuer or the Trustee, as the case may be, in satisfaction of any obligations of the Borrower hereunder not performed by the Borrower in accordance with the provisions hereof, or (ii) incurred as a result of a request by the Borrower or of a requirement of any Borrower Document or the Indenture and not otherwise required to be paid by the Borrower under this Agreement, or (iii) incurred in the defense of any action or proceeding with respect to the Project or any Borrower Document, or in enforcing any Borrower Document, or arising out of or based upon any other document related to the issuance of the Bonds; and (c) To the applicable party, as payment for or reimbursement or prepayment of any Ordinary Services and Ordinary Expenses and Extraordinary Services and Extraordinary Expenses of the Trustee as trustee, registrar, authenticating agent and paying agent, and of any other paying agent, authenticating agent, and registrar on the Bonds under the Indenture, all as provided in the Indenture, as and when the same become due, provided that the Borrower may, without creating an Event of Default hereunder, contest in good faith the necessity for any Extraordinary Services and Extraordinary Expenses and the amount of any such Ordinary Services, Ordinary Expenses, Extraordinary Services or Extraordinary Expenses, provided that fees for Ordinary Services provided for by the respective letter agreements agreed to by the Borrower and the Trustee, the Registrar, and any Paying Agents and Authenticating Agents, respectively, shall be considered to be customary. Upon the payment, prepayment, or incurrence of any such cost, expense, or liability described in this Section by any such party, the Additional Payments in respect thereof shall be payable upon written demand to the Borrower, which demand shall be accompanied by invoices or other appropriate documentation concerning the nature, amount and incurrence of such cost, expense or liability. If the Additional Payments payable under this Section are not paid by the Borrower within ten (10) days of the Borrower's receipt of such demand, such Additional Payments shall bear interest from such tenth (10th) date at the Interest Rate for Advances until the amount due shall have been fully paid. Section 4.3 Place of Pavments The Borrower shall make all Loan Payments directly to the Trustee at its designated corporate trust office. Additional Payments shall be made directly to the person or entity to whom or to which they are due. Section 4.4 Obligations Unconditional The obligations of the Borrower to make Loan Payments, Additional Payments and any payments required of the Borrower under Sections 5.09 and 6.03 of the Indenture shall be absolute and unconditional, and the Borrower shall make such payments without abatement, diminution or deduction regardless of any cause or circumstances whatsoever including, without limitation, any defense, set -off, recoupment or counterclaim which the Borrower may have or assert against the Issuer, the Trustee or any other Person, provided that the Borrower may contest 13 in good faith the necessity for any Extraordinary Services and Extraordinary Expenses and the amount of any Ordinary Services, Ordinary Expenses, Extraordinary Services or Extraordinary Expenses. Section 4.5 Assignment of Agreement and Issuer Revenues To secure the payment of Bond Debt Service Charges, the Issuer shall assign to the Trustee, by the Indenture, its rights under and interest in this Agreement (except for the Unassigned Issuer's Rights) and the Note. The Borrower hereby agrees and consents to those assignments. The Issuer shall not attempt to further assign, transfer or convey its interest in the Issuer Revenues or this Agreement or create any pledge or Lien of any form or nature with respect to the Issuer Revenues or Loan Payments hereunder. END OF ARTICLE IV 14 ARTICLE V ADDITIONAL AGREEMENTS AND COVENANTS Section 5.1 Right of Inspection At all reasonable times and upon reasonable notice, the Borrower shall allow any duly authorized representative of the Issuer or the Trustee to visit and inspect the Project, to examine and make copies of and from its books of record and account, and to discuss its affairs, finances, and accounts with its officers, and shall furnish to the Issuer and the Trustee any information reasonably required regarding its business affairs and financial condition within a reasonable time after receipt of written request therefor. Section 5.2 Borrower to Maintain its Existence; Sales of Assets or Mergers The Borrower shall maintain its existence, not dissolve or sell, transfer or otherwise dispose of all or substantially all of its assets and not consolidate with or merge into another entity or permit one or more other entities to consolidate with or merge into it, provided that it may do so if the surviving, resulting or transferee entity is other than the Borrower, it assumes in writing all of the obligations of the Borrower under this Agreement and the Regulatory Agreement and it has a net worth equal to or greater than that of the Borrower immediately prior to such consolidation, merger, sale or transfer. Nothing herein contained shall limit the rights of (i) any direct or indirect owners of interests in the Borrower to (a) transfer, convey, sell or otherwise dispose (a "Transfer ") their ownership interests to any Affiliate, or in connection with any estate planning, or by operation of law, or (b) make Transfers among and between themselves, or (ii) Borrower to make Transfers as otherwise permitted by (or subject to the terms and conditions set forth in) the Regulatory Agreement. Notwithstanding anything to the contrary contained herein or in any other Subordinate Bond Document (as defined in Section 13.14 of the Indenture), and subject to the consent of HUD (as defined in Section 13.14 of the Indenture) prior to each occurrence in accordance with the FHA Loan Documents (as defined in Section 13.14 of the Indenture), the following shall be permitted and shall not require the prior written approval of Issuer, FHA Lender or Trustee, (a) the transfer by the Investor Member of its interest in Borrower in accordance with the terms of Borrower's [Amended and Restated] Operating Agreement, as it may be amended from time to time (the "Partnership Agreement "), (b) the removal of the managing member of Borrower in accordance with the Partnership Agreement and the replacement thereof with the Investor Member, or any of its affiliates, (c) the transfer of ownership interests in the Investor Member or the Special Member, (d) the transfer of the interests of the Investor Member in Borrower to Borrower's managing member or any of its affiliates, and (e) any amendment to the Partnership Agreement to memorialize the transfers or removal described above. The parties agree that this section shall control to the extent of any conflict in any [Subordinate Bond Documents]. Section 5.3 Indemnification 15 The Borrower releases the Issuer and the Trustee from, agrees that the Issuer and the Trustee shall not be liable for, and indemnifies, defends and holds the Issuer and the Trustee harmless from and against, all liabilities, claims, costs and expenses and attorneys' fees imposed upon, incurred or asserted against the Issuer or the Trustee on account of (i) any loss or damage to property or injury to or death of or loss by any person that may be occasioned by any cause whatsoever pertaining to the acquisition, financing, construction, occupation, possession, management, equipping, furnishing, maintenance, operation and use of the Project or from any work or thing done in or about the Project site, or any sidewalks, passageways, driveways, curbs, vaults and vault space, streets or parking areas on the Project site or adjacent thereto; (ii) any breach or default on the part of the Borrower in the performance of any covenant or agreement of the Borrower under this Agreement, the Regulatory Agreement, the Note or any related document, or arising from any act or failure to act by the Borrower, or any of its agents, contractors, servants, employees or licensees; (iii) the Borrower's failure to comply with any requirement of this Agreement including the covenant in Section 5.4 hereof; (iv) any action taken or omitted to be taken by the Issuer or the Trustee under this Loan Agreement, the Indenture or the Regulatory Agreement; (v) the issuance of the Bonds; and (vi) any claim, action or proceeding brought with respect to any matter set forth in clause (i), (ii), (iii), (iv) or (v) above, provided, however, that the indemnification provided in this Section shall not apply to any matter arising or resulting from the gross negligence or willful misconduct of the party proposed to be indemnified hereunder. The Borrower agrees to indemnify the Trustee for and to hold it harmless against all liabilities, claims, costs and expenses incurred without negligence or willful misconduct on the part of the Trustee, on account of any action taken or omitted to be taken by the Trustee in accordance with the terms of this Agreement, the Bonds, the Regulatory Agreement, the Note or the Indenture or any action taken at the request of or with the consent of the Borrower, including the costs and expenses of the Trustee in defending itself against any such claim, action or proceeding brought in connection with the exercise or performance of any of its powers or duties under this Agreement, the Bonds, the Indenture, the Regulatory Agreement or the Note. In case any action or proceeding is brought against the Issuer or the Trustee in respect of which indemnity may be sought hereunder, the party seeking indemnity promptly shall give notice of that action or proceeding to the Borrower, and the Borrower upon receipt of that notice shall have the obligation and the right to assume the defense of the action or proceeding, provided that failure of a party to give that notice shall not relieve the Borrower from any of its obligations under this Section unless that failure prejudices the defense of the action or proceeding by the Borrower. The indemnified party shall have the right to employ separate counsel in any such action or proceedings and to participate in the defense thereof, but, unless such separate counsel is employed with the approval and consent of the Borrower, or because the indemnified party has been advised by counsel that there may be a conflict of interest between the Borrower and the indemnified party, the Borrower shall not be required to pay the fees and expenses of such separate counsel. The Borrower shall not be liable for any settlement made without its consent, which consent shall not be unreasonably withheld, conditioned or delayed. The indemnification set forth above is intended to and shall include the indemnification of all affected officials, directors, officers, agents and employees of the Issuer and the Trustee, 16 respectively. That indemnification is intended to and shall be enforceable by the Issuer and the Trustee, respectively, to the full extent permitted by law. Section 5.4 Borrower Not to Adversely Affect Exclusion from Gross Income of Interest on Bonds The Borrower hereby represents that it has taken and caused to be taken, and covenants that it will take and cause to be taken, all actions that may be required of it, alone or in conjunction with the Issuer, for the interest on the Bonds to be and to remain excluded from gross income for federal income tax purposes, and represents that it has not taken or permitted to be taken on its behalf, and covenants that it will not take or permit to be taken on its behalf, any actions that would adversely affect such exclusion under the provisions of the Code. Section 5.5 Affirmative Covenants Unless the Issuer or the FHA Lender shall otherwise consent in writing: (a) Maintenance of Properties. The Borrower shall maintain and preserve in good working order and condition, ordinary wear and tear and casualty loss excepted, all of its properties which are necessary or useful in the proper conduct of its business, and shall from time to time make all necessary repairs, renewals, replacements, additions and improvements to said properties. All damage to apartment units shall be repaired promptly and apartment units shall be maintained so as to be available at all times for habitation. (b) Keeping of Records and Books of Account. The Borrower shall keep adequate records and books of account in which complete entries will be made in accordance with GAAP or indicating deviations therefrom, reflecting all financial transactions. The Borrower shall deliver to the Trustee annually its year end financial statements accompanied by a written statement of the Borrower's independent public accountants that in making the examination necessary for certification of such financial statements, nothing has come to their attention that would lead them to believe that the Borrower has violated any of the terms, covenants or provisions of this Agreement insofar as it relates to accounting matters. (c) Payment of Taxes. Etc. The Borrower shall promptly pay and discharge: all taxes, assessments, fees, and other government charges or levies imposed upon it or upon any of its properties, income or profits, before the same shall become delinquent; all lawful claims of materialmen, mechanics, carriers, warehousemen, landlords and other similar Persons for labor, materials, supplies and rentals, which if unpaid might by law become a Lien upon its properties; any Indebtedness heretofore or hereafter incurred by it when due, and discharge, perform and observe covenants, provisions and conditions to be discharged, performed and observed by it in connection therewith, or in connection with any agreement or other instrument relating thereto or in connection with any Lien existing at any time upon any of its properties, provided, however, that the Borrower shall not be required to pay any of the foregoing if (a) the amount, applicability or validity thereof shall currently be contested in good faith by appropriate proceedings, (b) 17 the Borrower shall have set aside on its books adequate reserves with respect thereto and (c) the title of the Borrower to, and its right to use, its properties is not materially and adversely affected thereby. The Borrower hereby agrees that, in the event it fails to pay or cause to be paid taxes, assessments, fees and other government charges or levies or the premium on any required insurance and such failure constitutes a default under the FHA Loan Documents, the Trustee may make such payment, but is not obligated to do so, and the Trustee shall be reimbursed by the Borrower therefor with interest on the amount so advanced at the Interest Rate for Advances as provided in Section 4.2 hereof. (d) Insurance. The Borrower shall at all times maintain, or cause to be maintained, insurance of such types and in such amounts as required by the FHA Loan Documents. (e) Notice of Material Litigation. The Borrower shall promptly notify the Issuer and the Trustee in writing of any litigation, arbitration proceeding or administrative investigation, inquiry or other proceeding to which it may hereafter become a parry or be subject to which may result in a change in the business or assets or in the condition, financial or otherwise, of the Borrower which would materially impair the ability of the Borrower to perform this Agreement, the Regulatory Agreement, the Borrower guaranties or the Note, or any other agreement or instrument herein or therein contemplated. (f) Notice of Default. In the event that any Event of Default occurs under this Agreement, the Borrower shall give prompt notice in writing of such happening to the Trustee. (g) Performance of Contracts, Etc. Except to the extent contested in good faith, the Borrower shall perform according to and shall comply with all of its Contractual Obligations and all Requirements of Law if nonperformance thereof would result in a change in the business or assets or in the condition, financial or otherwise, of the Borrower which would materially impair the ability of the Borrower to perform this Agreement, the Regulatory Agreement or the Note or any other agreement or instrument herein or therein contemplated. (h) Notice of Other Matters. The Borrower shall promptly notify the Trustee in writing of any of the following events: (i) Any event with respect to the business or assets or in the condition, financial or otherwise, of the Borrower which would materially impair the ability of the Borrower to perform its obligations under this Agreement, the Regulatory Agreement or the Note or any other agreement or instrument herein or therein contemplated. (ii) A default by the Borrower in any material respect under any material agreement to which the Borrower is a party or by which the Borrower or its properties or assets may be bound, giving in each case the details thereof and specifying the action proposed to be taken with respect thereto. 18 (i) Cooperation in Perfecting Security Interests, Etc. The Borrower shall promptly perform such acts as may be necessary or advisable to perfect and maintain any Lien provided for in this Agreement or in any agreement or document contemplated herein or therein, or otherwise to carry out the intent of this Agreement. The Borrower shall, and shall promptly execute, deliver and perform or cause to be done, executed, delivered and performed all such documents, instruments, agreements, things and acts, including, without limitation, financing statements, continuation statements and mortgages as may be necessary or advisable to perfect or maintain a Lien on any and all assets or rights owned by the Borrower, or any interest of the Borrower therein. 0) Environmental Matters. The Borrower will take and continue to take prompt action to remedy all environmental pollution and contamination, hazardous waste disposal and other environmental cleanup problems, if any, whether or not such cleanup problems have resulted from the order or request of a municipal, state, federal, administrative or judicial authority, or otherwise. The foregoing covenant shall not constitute or create a waiver of any rights the Borrower may have to pursue any legal rights or remedies against any third party for any environmental claims. (k) Non - discrimination. The Borrower will not discriminate, and will require each contractor, subcontractor and commercial tenant of the Project to covenant that it will not discriminate by reason of race, creed, color, handicap, national origin or sex in the employment of any Person employed by it in connection with the Project or working in or on the Project. The Borrower will require each manager of the Project to covenant that in the leasing of the Project it will not discriminate by reason of race, creed, color, handicap, national origin or sex. (1) Patriot Act. The Borrower covenants and agrees to provide documentation as reasonably requested or required by the Trustee to enable the Trustee to comply with the requirements of the USA Patriot Act as described in Section 13.13 of the Indenture. Section 5.6 Additional Indebtedness So long as no Event of Default or default hereunder shall have occurred and be continuing, the Borrower shall be permitted to incur any Indebtedness for any Project Cost or other obligation or payment due under this Agreement, the Indenture or the Regulatory Agreement. Section 5.7 Nature of Business The Borrower will not change the general character of its business as conducted at the date hereof, or engage in any type of business not reasonably related to its business as normally conducted. 19 Section 5.8 Cooperation in Enforcement of Regulatory Agreement In order to maintain the exclusion from gross income under federal tax law of interest on the Bonds and to assure compliance with the laws of the State (including the Act), the Borrower hereby agrees that it shall, concurrently with or before the execution and delivery of the Bonds, execute and deliver and cause to be recorded the agreement defined in the Indenture as the "Regulatory Agreement." The Borrower hereby covenants and agrees as follows: (a) to comply with all provisions of the Regulatory Agreement; (b) to advise the Issuer in writing promptly upon learning of any default with respect to the covenants, obligations and agreements of the Borrower set forth in the Regulatory Agreement; (c) upon written direction by the Issuer, to cooperate fully and promptly with the Issuer in enforcing the terms and provisions of the Regulatory Agreement; and (d) to file in accordance with the time limits established by the Regulatory Agreement all reports and certificates required thereunder, and the annual certification to the Secretary of the Treasury required by the Regulatory Agreement. The Issuer shall not incur any liability in the event of any breach or violation of a Regulatory Agreement by the Borrower, and the Borrower agrees to indemnify the Issuer from any claim or liability for such breach pursuant to Section 5.3 hereof. Section 5.9 Tax Exempt Status of the Bonds (a) It is the intention of the Issuer and the Borrower that interest on the Bonds shall be and remain excludable from gross income for federal income taxation purposes, and to that end the covenants and agreements of the Borrower in this Section 5.9 are for the benefit of the owners of the Bonds and the Issuer. (b) The Borrower covenants and agrees that it will not (i) use or permit the use of any of the funds provided by the Issuer hereunder or any other funds of the Borrower, directly or indirectly, in such manner as would, or (ii) enter into, or allow any "related person" (as defined in Section 147(a)(2) of the Code) to enter into, any arrangement, formal or informal, for the purchase of the Bonds that would, or (iii) take or omit to take any other action that would, in each case cause the Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code. (c) In the event that at any time the Borrower is of the opinion or becomes otherwise aware that for purposes of this Section 5.9 it is necessary to restrict or to limit the yield on the investment of any moneys held under the Indenture or otherwise by the Trustee, the Borrower shall determine the limitations and so instruct the Trustee in writing and cause the Trustee to comply with those limitations under the Indenture. (d) The Borrower will take such action or actions as may be necessary to fully comply with the Tax Agreement and with Section 148 of the Code as applicable to the Bonds. 20 (e) The Borrower further agrees that it shall not discriminate on the basis of race, creed, color, sex, sexual preference, source of income (e.g. AFDC, SSI), physical disability, national origin or marital status in the lease, use or occupancy of the Project or in connection with the employment or application for employment of persons for the operation and management of the Project, to the extent required by applicable State or federal law. (f) The Borrower further warrants and covenants that it has not executed and will not execute any other agreement, or any amendment or supplement to any other agreement, with provisions contradictory to, or in opposition to, the provisions, of this Loan Agreement and of the Regulatory Agreement, and that in any event, the requirements of this Loan Agreement and the Regulatory Agreement are paramount and controlling as to the rights and obligations herein set forth and supersede any other requirements in conflict herewith and therewith. (g) The Borrower will use due diligence to complete the acquisition and rehabilitation of all of the units comprising the Project and reasonably expects to fully expend the entire $ principal amount of the Loan by the earlier of 1, 20_ or the day before the Maturity Date. (h) The Borrower will take such action or actions as necessary to ensure compliance with Sections 2.2(e), (g), (h), (i), (1), (n), (o) and (p) hereof. Section 5.10 Useful Life The Borrower hereby represents and warrants that, within the meaning of Section 147(a)(14) of the Code, the average maturity of the Combined Bonds does not exceed 120 percent of the average reasonably expected economic life of the facilities being financed with the proceeds of the Bonds. Section 5.11 Federal Guarantee Prohibition The Borrower shall take no action, nor permit nor suffer any action to be taken if the result of the same would be to cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code. Section 5.12 Prohibited Facilities The Borrower represents and warrants that no portion of the proceeds of the Loan shall be used to provide any airplane, skybox or other private luxury box, health club facility, facility primarily used for gambling, or store the principal business of which is the sale of alcoholic beverages for consumption off premises, and no portion of the proceeds of the Loan shall be used for an office unless (a) the office is located on the premises of facilities constituting a portion of the Project and (b) not more than a de minimis amount of the functions to be performed at such office is not related to the day -to -day operations of the Project. END OF ARTICLE V 21 ARTICLE VI PREPAYMENT Optional Prepayment The Note may be prepaid by the Borrower in whole or in part any Business Day occurring on or after 1, , without penalty at a prepayment price equal to the outstanding principal amount plus any unpaid accrued interest on the Note. In order to prepay Note, the Borrower shall give the Trustee written notice at least thirty-five (35) days prior to the prepayment date to effect an optional redemption of the Bonds pursuant to Section 4.01 of the Indenture. END OF ARTICLE VI 22 ARTICLE VII EVENTS OF DEFAULT AND REMEDIES Section 7.1 Events of Default Each of the following shall be an Event of Default: (a) The Borrower shall fail to pay any Loan Payment on or prior to the date on which that Loan Payment is due and payable or within the Loan Payment Cure Period; (b) The Borrower shall fail to observe and perform any other agreement, term or condition contained in this Agreement and the continuation of such failure for a period of thirty (30) days after written notice thereof shall have been given to the Borrower and the Investor Limited Partner by the Issuer or the Trustee, or for such longer period as the Issuer and the Trustee may agree to in writing, provided that if the failure is other than the payment of money and is of such nature that it can be corrected but not within the applicable period, that failure shall not constitute an Event of Default so long as the Borrower institutes curative action within the applicable period and diligently pursues that action to completion, which must be resolved within one hundred eighty (180) days after the aforementioned notice; (c) The Borrower shall: (i) admit in writing its inability to pay its debts generally as they become due; (ii) have an order for relief entered in any case commenced by or against it under the federal bankruptcy laws, as now or hereafter in effect, which is not dismissed within ninety (90) days; (iii) voluntarily commence a proceeding under any other federal or state bankruptcy, insolvency, reorganization or similar law, or have such a proceeding commenced against it and either have an order of insolvency or reorganization entered against it or have the proceeding remain undismissed and unstayed for ninety (90) days; (iv) make an assignment for the benefit of creditors; or (v) have a receiver or trustee appointed for it or for the whole or any substantial part of its property which appointment is not vacated within a period of ninety (90) days; (d) Any representation or warranty made by the Borrower herein or any statement in any report, certificate, financial statement or other instrument furnished in connection with this Agreement or with the purchase of the Bonds shall at any time prove to have been false or misleading in any adverse material respect when made or given; and (e) There shall occur an "Event of Default" as defined in the Indenture or the Regulatory Agreement. Notwithstanding the foregoing, if, by reason of Force Majeure, the Borrower is unable to perform or observe any agreement, term or condition hereof which would give rise to an Event of Default under subsection (b) hereof, the Borrower shall not be deemed in default during the continuance of such inability. However, the Borrower shall promptly give notice to the Trustee and the Issuer of the existence of an event of Force Majeure and shall use commercially 23 reasonable efforts to remove the effects thereof, provided that the settlement of strikes or other industrial disturbances shall be entirely within its discretion. The term "Force Majeure" shall mean, without limitation, the following: (i) acts of God; strikes, lockouts or other industrial disturbances; acts of terrorism or of public enemies; orders or restraints of any kind of the government of the United States of America or of the State or any of their departments, agencies, political subdivisions or officials, or any civil or military authority; insurrections; civil disturbances; riots; epidemics; landslides; lightning; earthquakes; fires; hurricanes; tornados; storms; droughts; floods; arrests; restraint of government and people; explosions; breakage, malfunction or accident to facilities, machinery, transmission pipes or canals; partial or entire failure of utilities; shortages of labor, materials, supplies or transportation; or (ii) any cause, circumstance or event not reasonably within the control of the Borrower. The declaration of an Event of Default under subsection (c) above, and the exercise of remedies upon any such declaration, shall be subject to any applicable limitations of federal bankruptcy law affecting or precluding that declaration or exercise during the pendency of or immediately following any bankruptcy, liquidation or reorganization proceedings. Section 7.2 Remedies on Default Whenever an Event of Default shall have happened and be subsisting, any one or more of the following remedial steps may be taken: (a) If acceleration of the principal amount of the Bonds has been declared pursuant to Section 7.03 of the Indenture, the Trustee shall declare all Loan Payments to be immediately due and payable together with any other amounts payable by the Borrower under this Agreement and the Note whereupon the same shall become immediately due and payable; (b) The Trustee may exercise any or all or any combination of the remedies specified in this Agreement; (c) The Issuer or the Trustee may have access to, inspect, examine and make copies of the books, records, accounts and financial data of the Borrower pertaining to the Project; or (d) The Issuer or the Trustee may pursue all remedies now or hereafter existing at law or in equity to collect all amounts then due and thereafter to become due under this Agreement, the Regulatory Agreement and the Note or to enforce the performance and observance of any other obligation or agreement of the Borrower under those instruments. 24 Notwithstanding the foregoing, neither the Issuer nor the Trustee, as assignee of the Issuer, shall be obligated to take any step which in its respective opinion will or might cause it to expend time or money or otherwise incur liability unless and until a satisfactory indemnity bond has been furnished to the Issuer or the Trustee, as applicable, at no cost or expense to the Issuer or the Trustee. Any amounts collected as Loan Payments or applicable to Loan Payments and any other amounts which would be applicable to payment of Bond Debt Service Charges collected pursuant to action taken under this Section shall be paid into the Bond Fund and applied in accordance with the provisions of the Indenture or, if the Outstanding Bonds have been paid and discharged in accordance with the provisions of the Indenture, shall be paid as provided in Section 5.08 of the Indenture for transfers of remaining amounts in the Bond Fund. The provisions of this Section are subject to the further limitation that the rescission by the Trustee of its declaration that all of the Bonds are immediately due and payable also shall constitute an annulment of any corresponding declaration made pursuant to paragraph (a) of this Section and a waiver and rescission of the consequences of that declaration and of the Event of Default with respect to which that declaration has been made, provided that no such waiver or rescission shall extend to or affect any subsequent or other default or impair any right consequent thereon. Section 7.3 No Remedy Exclusive No remedy conferred upon or reserved to the Issuer or the Trustee by this Agreement is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement, the Regulatory Agreement or the Note, or now or hereafter existing at law, in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair that right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Issuer or the Trustee to exercise any remedy reserved to it in this Article, it shall not be necessary to give any notice, other than any notice required by law or for which express provision is made herein. Section 7.4 Agreement to Pay Attorneys' Fees and Expenses If the Issuer or the Trustee should incur expenses, including attorneys' fees, in connection with the enforcement of this Agreement, the Regulatory Agreement or the Note or the collection of sums due thereunder, the Borrower shall reimburse the Issuer and the Trustee, as applicable, for the expenses so incurred upon demand. Section 7.5 No Waiver No failure by the Issuer or the Trustee to insist upon the strict performance by the Borrower of any provision hereof shall constitute a waiver of their right to strict performance and no express waiver shall be deemed to apply to any other existing or subsequent right to remedy the failure by the Borrower to observe or comply with any provision hereof. 25 Section 7.6 Notice of Default The Borrower shall notify the Trustee immediately if it becomes aware of the occurrence of any Event of Default hereunder or of any fact, condition or event which, with the giving of notice or passage of time or both, would become an Event of Default. Section 7.7 Investor Limited Partner's Cure Rights The Issuer hereby agrees that any cure of any Event of Default hereunder made or tendered by the Investor Limited Partner shall be deemed to be cured by the Borrower, and shall be accepted or rejected by the Issuer on the same basis as if made or tendered by the Borrower. END OF ARTICLE VII 26 ARTICLE VIII MISCELLANEOUS Section 8.1 Term of Agreement This Agreement shall be and remain in full force and effect from the date of delivery of the Bonds to the Holder until such time as all of the Bonds shall have been fully paid (or provision made for such payment) pursuant to the Indenture and all other sums payable by the Borrower under this Agreement and the Note shall have been paid, except for obligations of the Borrower under Sections 3.9, 4.2 and 5.3 hereof, which shall survive any termination of this Agreement. Section 8.2 Amounts RemaininE in Funds Any amounts in the Bond Fund remaining unclaimed by the Holders of Bonds for two years after the due date thereof (whether at stated maturity or otherwise), at the option of the Borrower, shall be deemed to belong to and shall be paid, at the written request of the Borrower, to the Borrower by the Trustee as overpayment of Loan Payments. With respect to that principal of and interest on the Bonds to be paid from moneys paid to the Borrower pursuant to the preceding sentence, the Holders of the Bonds entitled to those moneys shall look solely to the Borrower for the payment of those moneys. Further, any amounts remaining in the Bond Fund, the Project Fund and any other special funds or accounts created under this Agreement, the Regulatory Agreement or the Indenture after all of the Outstanding Bonds shall be deemed to have been paid and discharged under the provisions of the Indenture and all other amounts required to be paid under this Agreement, the Note, Regulatory Agreement and the Indenture have been paid, shall be paid to the Borrower to the extent that those moneys are in excess of the amounts necessary to effect the payment and discharge of the outstanding Bonds. Section 8.3 Notices All notices, certificates, requests or other communications hereunder shall be given in the same manner as notices, certificates, requests and other communications are to be given under Section 13.03 of the Indenture. Section 8.4 Extent of Covenants of the Issuer; No Personal Liability All covenants, obligations and agreements of the Issuer contained in this Agreement and the Indenture shall be effective to the extent authorized and permitted by applicable law. No such covenant, obligation or agreement shall be deemed to be a covenant, obligation or agreement of any present or future member, officer, agent or employee of the Issuer or the Council in other than his official capacity, and neither the members of the Council nor any official executing the Bonds shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof or by reason of the covenants, obligations or agreements of the Issuer contained in this Agreement or in the Indenture. 27 Section 8.5 Binding Effect This Agreement shall inure to the benefit of and shall be binding in accordance with its terms upon the Issuer, the Borrower and their respective permitted successors and assigns provided that this Agreement may not be assigned by the Borrower (except in connection with a sale or transfer of assets pursuant to Section 5.2 hereof) and may not be assigned by the Issuer except to the Trustee pursuant to the Indenture or as otherwise may be necessary to enforce or secure payment of Bond Debt Service Charges. This Agreement may be enforced only by the parties, their assignees and others who may, by law, stand in their respective places. Section 8.6 Amendments and Supplements Except as otherwise expressly provided in this Agreement or the Indenture, subsequent to the issuance of the Bonds and prior to all conditions provided for in the Indenture for release of the Indenture having been met, this Agreement, the Regulatory Agreement and the Note may not be effectively amended, changed, modified, altered or terminated except in accordance with the provisions of Article XI of the Indenture, as applicable. Section 8.7 Execution Counterparts This Agreement may be executed in any number of counterparts, each of which shall be regarded as an original and all of which shall constitute but one and the same instrument. Section 8.8 Severability If any provision of this Agreement, or any covenant, obligation or agreement contained herein is determined by a court to be invalid or unenforceable, that determination shall not affect any other provision, covenant, obligation or agreement, each of which shall be construed and enforced as if the invalid or unenforceable portion were not contained herein. That invalidity or unenforceability shall not affect any valid and enforceable application thereof, and each such provision, covenant, obligation or agreement shall be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law. Section 8.9 Governing Law This Agreement shall be deemed to be a contract made under the laws of the State and for all purposes shall be governed by and construed in accordance with the laws of the State. Section 8.10 Non - Recourse Obligations Notwithstanding anything to the contrary set forth herein, in the Note and in any other document delivered in connection herewith, it is hereby expressly agreed and understood that the obligations of Borrower hereunder, under the Note and under every document executed and delivered in connection herewith, are non - recourse. Neither the Borrower nor any member, partner, officer, director or employee of the Borrower (each, a "Related Party") shall have any personal liability for the repayment of the Loan. In furtherance thereof, the Issuer and the Trustee shall be entitled to look solely and exclusively to the Issuer Revenues, the Project and any income derived therefrom for the payment and other obligations of Borrower hereunder, 28 under the Note and all evidences of indebtedness secured hereby, and shall not seek a personal judgment against any member, partner, officer, director, member or stockholder of the Borrower, provided that nothing herein shall relieve any such Related Party from liability for any of the following: (a) rent collected for more than one month in advance and received by a Related Party and not applied to the reasonable operating requirements of the Project; (b) misappropriation or misapplication by a Related Party of insurance or eminent domain proceeds; (c) fraud or material misrepresentation by a Related Party against the Issuer or the Holder; (d) conversion by a Related Party of all or a material portion of the Project; or (e) gross negligence, willful misconduct or intentional torts of a Related Party relating to the Project or the revenues therefrom. Section 8.11 HUD - Required Provisions Borrower and Issuer acknowledge that this Agreement, and all Borrower's obligations hereunder, are subject and subordinate to the FHA Loan Documents. Notwithstanding any provisions of this Agreement to the contrary, no obligations of the Borrower hereunder shall be payable except from (A) Surplus Cash (as defined in the FHA Regulatory Agreement) or (B) funds that are not derived from revenues of the Project (as defined in the FHA Mortgage), any proceeds of the FHA Note, any reserve or deposit made with the FHA Lender or any other parry as required by HUD in connection with the FHA Loan Documents (collectively, "Non- Project Sources "). No claims or actions shall be made (or payable) under this Agreement against the Project, the FHA Lender, the proceeds of the FHA Note, or the assets of the Borrower, except for Surplus Cash of the Borrower. In addition, the rights and obligations of the parties under this Agreement and all other documents evidencing, implementing, or securing this Agreement (collectively, the "Subordinate Bond Documents ") are and shall be subordinated in all respects rights and obligations of the parties to and under the FHA Loan Documents. In the event of any conflict between the provisions of (i) this Agreement or the Subordinate Bond Documents and (ii) the provisions of the FHA Loan Documents or the Program Obligations (as defined in the FHA Mortgage), the provisions of the FHA Loan Documents or the Program Obligations shall control. The provisions of this Section 8.11 shall control over any inconsistent provisions in this Agreement or the Subordinate Bond Documents. This Agreement shall not be amended or modified without the prior written consent of HUD. Section 8.12 Limitation on Liability of the Issuer The Issuer shall not be obligated to pay the principal of or interest on the Bonds, except from moneys and assets received by the Trustee on behalf of the Issuer pursuant to this Loan Agreement, or from amounts held by the Trustee under the Indenture. Neither the faith and credit nor the taxing power of the State, or any political subdivision thereof, nor the faith and credit of the Issuer is pledged to the payment of the principal of or interest on the Bonds. The 29 Issuer shall not be liable for any costs, expenses, losses, damages, claims or actions, of any conceivable kind on any conceivable theory, under or by reason of or in connection with this Loan Agreement, the Note, the Bonds, the Indenture or the Regulatory Agreement except only to the extent amounts are received for the payment thereof from the Borrower under this Loan Agreement, or from amounts held by the Trustee under the Indenture. The Borrower hereby acknowledges that the Issuer's sole source of moneys to repay the Bonds will be provided by the payments made by the Borrower pursuant to this Loan Agreement, and amounts in certain funds and accounts held by the Trustee under the Indenture, and hereby agrees that if the payments to be made hereunder shall ever prove insufficient to pay all principal of and interest on the Bonds as the same shall become due (whether by maturity, redemption, acceleration or otherwise), then upon notice from the Trustee, the Borrower shall pay such amounts as are required from time to time to prevent any deficiency or default in the payment of such principal of or interest on the Bonds, including, but not limited to, any deficiency caused by acts, omissions, nonfeasance or malfeasance on the part of the Trustee, the Borrower, the Issuer or any third party, subject to any right of reimbursement from the Trustee, the Issuer or any such third party, as the case may be, therefor. Section 8.13 Waiver of Personal Liability No Commissioner, officer, agent or employee of the Issuer shall be individually or personally liable for the payment of any principal of or interest on the Bonds or any other sum hereunder or be subject to any personal liability or accountability by reason of the execution and delivery of this Loan Agreement; but nothing herein contained shall relieve any such Commissioner, director, officer, agent or employee from the performance of any official duty provided by law or by this Loan Agreement. Section 8.14 Delivery of Reports, Etc. The delivery of reports, information and documents to the Issuer as provided herein is for informational purposes only and the Issuer's receipt of such shall not constitute constructive knowledge of any information contained therein or determinable from information contained therein. The Issuer shall have no duties or responsibilities except those that are specifically set forth herein, and no other duties or obligations shall be implied in this Loan Agreement against the Issuer. Section 8.15 Audit Expenses. The Borrower agrees to pay any costs incurred by the Issuer, including fees of Issuer's counsel, as a result of the Issuer's compliance with an audit or inquiry of any kind, random or otherwise, by the Internal Revenue Service, the Minnesota Department of Revenue, the Minnesota Office of the State Auditor, or any other governmental agency with respect to the Combined Bonds or the Project. END OF ARTICLE VIII 30 YORKTOWN CONTINENTAL, LP By: General Partner By: [TITLE] [BORROWER SIGNATURE PAGE TO LOAN AGREEMENT] S -1 CITY OF EDINA, MINNESOTA By: Mayor By: City Manager [ISSUER SIGNATURE PAGE TO LOAN AGREEMENT] S -2 EXHIBIT A FORM OF SERIES 2014A NOTE This Note has not been registered under the Securities Act of 1933. Its transferability is restricted by the Trust Indenture and the Loan Agreement referred to herein. $ , 20 Yorktown Continental, LP, a Minnesota limited partnership (the "Borrower "), for value received, promises to pay in installments to the City of Edina, Minnesota, as Issuer (the "Issuer ") under the Indenture hereinafter referred to, the principal sum of MILLION THOUSAND DOLLARS. and to pay interest on the unpaid balance of such principal sum from and after the date hereof at the rate of _% per annum, until the payment of such principal sum has been made or provided for. The principal amount stated above shall be paid on or before the fifth Business Day (as defined in the Indenture defined herein) immediately preceding the Maturity Date (as defined in the Indenture defined herein). Interest shall be calculated on the basis of a 360 -day year of 12 equal months. Interest on this Note shall be paid in Federal Reserve funds on the fifth Business Day next preceding each 1 and 1, commencing 1, 20_ (the "Interest Payment Dates "). This Note has been executed and delivered by the Borrower to the Issuer pursuant to a certain Loan Agreement (the "Agreement ") dated as of July 1, 2014, between the Issuer and the Borrower. Terms used but not defined herein shall have the meanings ascribed to such terms in the Agreement and the Indenture, as defined below. Under the Agreement, the Issuer has loaned the Borrower a portion of the principal proceeds received from the sale of the Issuer's $ Multifamily Housing Revenue Bonds (Yorktown Continental, LP), Series 2014A dated, as originally issued, as of July _, 2014 (the "Bonds ") to assist in the financing of the Project, and the Borrower has agreed to repay such loan by making payments ( "Loan Payments ") at the times and in the amounts set forth in this Note for application to the payment of Bond Debt Service Charges on the Bonds as and when due. The Bonds have been issued, concurrently with the execution and delivery of this Note, pursuant to, and are secured by, the Trust Indenture (the "Indenture "), dated as of July 1, 2014, between the Issuer and U.S. Bank National Association, as Trustee (the "Trustee ") and in the Indenture has been assigned by the Issuer to the Trustee to secure the repayment of principal and interest on the Bonds and other amounts under the Indenture. To provide funds to pay the principal of and interest on the Bonds as and when due as specified herein, the Borrower hereby agrees to and shall make Loan Payments in Federal Reserve funds on the 5th Business Day immediately preceding each Interest Payment Date in an amount equal to the Bond Debt Service Charges on the Bonds payable on the next succeeding Interest Payment Date related thereto. In addition, to provide funds to pay the Bond Debt Service Charges on the Bonds as and when due at any other time, the Borrower hereby agrees to and shall make Loan Payments in United States Federal Reserve funds on the fifth Business Day A -1 immediately preceding any other date on which any Bond Debt Service Charges on the Bonds shall be due and payable, whether at maturity, upon acceleration or otherwise, in an amount equal to those Bond Debt Service Charges. If payment or provision for payment in accordance with the Indenture is made in respect of the Bond Debt Service Charges on the Bonds from moneys other than Loan Payments, this Note shall be deemed paid to the extent such payments or provision for payment of Bonds has been made. Consistent with the provisions of the immediately preceding sentence, the Borrower shall have credited against its obligation to make Loan Payments any amounts transferred from the Project Fund or the Collateral Fund to the Bond Fund. Subject to the foregoing, all Loan Payments shall be in the full amount required hereunder. All Loan Payments shall be made to the Trustee at its designated corporate trust office for the account of the Issuer and deposited in the Bond Fund created by the Indenture. Except as otherwise provided in the Indenture, the Loan Payments shall be used by the Trustee to pay the Bond Debt Service Charges on the Bonds as and when due. The obligation of the Borrower to make the payments required hereunder shall be absolute and unconditional and the Borrower shall make such payments without abatement, diminution or deduction regardless of any cause or circumstances whatsoever including, without limitation, any defense, set -off, recoupment or counterclaim which the Borrower may have or assert against the Issuer, the Trustee or any other person. This Note is subject to optional prepayment by the Borrower on the terms stated in the Agreement. Whenever an Event of Default under Section 7.01 of the Indenture shall have occurred and, as a result thereof, the principal of and any premium on all Bonds then outstanding, and interest accrued thereon, shall have been declared to be immediately due and payable pursuant to Section 7.03 of the Indenture, the unpaid principal amount of and any premium and accrued interest on this Note shall also be due and payable in Federal Reserve funds on the date on which the principal of and premium and interest on the Bonds shall have been declared due and payable, provided that the annulment of a declaration of acceleration with respect to the Bonds shall also constitute an annulment of any corresponding declaration with respect to this Note. The payment obligations of this Note are non - recourse to the Borrower to the extent set forth in Section 8.10 of the Agreement. Borrower, Trustee and Issuer acknowledge that this Note, and all Borrower's obligations hereunder, are subject and subordinate to the FHA Loan Documents (i) FHA - Insured Note (Multistate) dated as of 1, 20_ from Borrower to FHA Lender, initially endorsed for mortgage insurance by the Secretary of Housing and Urban Development ( "HUD ") pursuant to Section 221(d)(4) of the National Housing Act, as amended (the "FHA Note "); (ii) Multifamily Mortgage, Assignment of Leases and Rents, and Security Agreement ([State]) dated as of [Dated Date] from Borrower for the benefit of FHA Lender to secure the FHA Note (the "FHA Mortgage "); (iii) Regulatory Agreement dated as of [Dated Date] between Borrower and HUD (the "HUD Regulatory Agreement "); and (iv) any and all other documents, agreements, or A -2 instruments which evidence or secure the indebtedness evidenced by the FHA Note. Notwithstanding any provision in this Note to the contrary, this Note shall not be due and payable prior to the maturity date of the FHA Note, provided that it may be prepaid at any time from (A) Surplus Cash (as defined in the HUD Regulatory Agreement) or (B) funds that are not derived from revenues of the Project (as defined in the FHA Mortgage), any proceeds of the FHA Note, any reserve or deposit made with the FHA Lender or any other party as required by HUD in connection with the FHA Loan Documents (collectively, "Non- Project Sources "), but provided further that no prepayment of this Note is permitted prior to the "final endorsement" of the FHA Note for mortgage insurance by HUD. Payments due under this Note may only be paid from Surplus Cash (but in no event greater than 75% of the total amount of Surplus Cash) or from Non - Project Sources, provided that this restriction on payment shall not excuse any default caused by the failure of the Borrower to pay the indebtedness evidenced by this Note. In addition, (1) the indebtedness evidenced by this Note and all other documents evidencing or securing this Note (collectively, the "Subordinate Loan Documents ") are and shall be subordinated in right of payment, to the prior payment in full of the indebtedness evidenced by the FHA Loan Documents, and (2) the Subordinate Loan Documents are and shall be subject and subordinate in all respects to the liens, terms, covenants and conditions of the FHA Mortgage and the other FHA Loan Documents and to all advances heretofore made or which may hereafter be made pursuant to the FHA Mortgage and the other FHA Loan Documents (including but not limited to, all sums advanced for the purposes of (a) protecting or further securing the lien of the FHA Mortgage, curing defaults by Borrower under the FHA Loan Documents or for any other purpose expressly permitted by the FHA Mortgage, or (b) constructing, renovating, repairing, furnishing, fixturing or equipping the Project). In the event of any conflict between the provisions of (i) this Note [or the Subordinate Loan Documents] and (ii) the provisions of the FHA Loan Documents or the Program Obligations (as defined in the FHA Mortgage), the provisions of the FHA Loan Documents or the Program Obligations shall control. A -3 IN WITNESS WHEREOF, the Borrower has caused this Note to be executed in its name as of the date first above written. YORKTOWN CONTINENTAL, LP By: General Partner By: [TITLE] A -4 EXHIBIT B BORROWER'S CERTIFICATE TO FHA LENDER AND TRUSTEE STATEMENT NO. REQUESTING DISBURSEMENT OF FUNDS FROM PROJECT FUND PURSUANT TO SECTION 3.4 OF THE LOAN AGREEMENT DATED AS OF JULY 1, 2014 BETWEEN THE CITY OF EDINA, MINNESOTA AND YORKTOWN CONTINENTAL, LP Pursuant to Section 3.4 of the Loan Agreement (the "Agreement ") between the City of Edina, Minnesota (the "Issuer ") and Yorktown Continental, LP, a Minnesota limited partnership (the "Borrower "), dated as of July 1, 2014, the undersigned Authorized Borrower Representative hereby requests and authorizes U.S. Bank National Assocation, as trustee (the "Trustee "), as depository of the Project Fund created by the Indenture, to disburse out of the moneys deposited in the Project Fund in the amount(s) and to the person(s) set forth in this certificate immediately upon a corresponding amount of HUD Funds or other Available Moneys being deposited by the FHA Lender or the Borrower into the Collateral Fund. Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Indenture referenced in the Agreement. To induce the Trustee to release moneys deposited in the Project Fund pursuant to the terms of the Indenture and the Agreement in the amounts(s) and to the person(s) set forth herein and in the Disbursement Schedule attached hereto, the undersigned Borrower represents, warrants and certifies to the Issuer and the Trustee: (a) Each item for which disbursement is requested hereunder either (i) are presently due and payable, constitute Project Costs properly incurred by the Borrower in connection with the Project being financed with the proceeds of the Loan, or are reimbursable Project Costs properly chargeable against the Loan; or (ii) are to be deposited to an escrow fund to be disbursed therefrom solely for Project Costs properly incurred by the Borrower in connection with the Project; and in each case none of the items for which disbursement is requested has formed the basis for any disbursement heretofore made from said Project Fund. The amount or amounts and the party or parties to whom the disbursements shall be made are specified in the Disbursement Schedule attached hereto (and may be the undersigned in the case of reimbursement for advances and payments made or cost incurred for work done by the undersigned). (b) Each such item is or was necessary in connection with the acquisition and rehabilitation of the Units of the Project. (c) The costs specified in the Disbursement Schedule attached hereto, when added to all previous disbursements under the Loan, will result in at least 95% of the aggregate amount of all disbursements having been used to pay or reimburse the Borrower for amounts which are Qualified Project Costs (as defined in the Regulatory Agreement referred to in the Agreement). (d) To the knowledge of the undersigned, there is no current or existing event of default pursuant to the terms of the Agreement or the Regulatory Agreement and no event exists which by notice or passage of time or both would constitute an event of default under any of the foregoing documents. (e) No representation or warranty of the Borrower contained in the Agreement or the Regulatory Agreement is materially incorrect or inaccurate, except as the Borrower has set forth in writing, and there has been no event of default under the terms of any of those documents and which is continuing and no event shall exist which by notice, passage of time or both would constitute an event of default under any of those documents. (f) This statement and all exhibits hereto, including the Disbursement Schedule attached hereto, shall be conclusive evidence of the facts and statements set forth herein and shall constitute full warrant, protection and authority to the Trustee for its actions taken pursuant hereto. This statement constitutes the approval of the Borrower of the disbursement hereby requested and authorized. This day of , 20_. By: Authorized Borrower Representative [Name /Title] Schedule 1 Approved by Authorized Lender Representative: : [Name /Title] IM DISBURSEMENT SCHEDULE 1 TO STATEMENT NO. REQUESTING AND AUTHORIZING DISBURSEMENT OF FUNDS FROM PROJECT FUND PURSUANT TO SECTION 3.4 OF THE LOAN AGREEMENT DATED AS OF JULY 1, 2014 BETWEEN THE CITY OF EDINA, MINNESOTA AND YORKTOWN CONTINENTAL, LP PAYEE AMOUNT PURPOSE ME EXHIBIT C City of Edina, Minnesota Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014A COMPLETION CERTIFICATE U.S. Bank National Association [Trustee Address] Attention: Pursuant to Section 3.7 of the Loan Agreement (the "Agreement ") between the City of Edina, Minnesota (the "Issuer ") and Yorktown Continental, LP, a Minnesota limited parternship (the "Borrower "), dated as of July 1, 2014, and relating to the captioned Bonds, the undersigned Authorized Borrower Representative hereby certifies to that (with capitalized words and terms used and not defined in this Certificate having the meanings assigned in the Agreement): (a) The Project was substantially completed and available and suitable for use as multifamily housing on (b) All other facilities necessary in connection with the Project have been acquired, constructed, equipped and improved. (c) The acquisition, rehabilitating, equipping and improvement of the Project and those other facilities have been accomplished in such a manner as to conform in all material respects with all applicable zoning, planning, building, environmental and other similar governmental regulations. (d) Except as provided in subsection (e) of this Certificate, all costs of that acquisition and installation due on or after the date of this Certificate and now payable have been paid. (e) The Trustee shall retain $ in the Project Fund for the payment of costs of the Project not yet due or for liabilities which the Borrower is contesting or which otherwise should be retained, for the following reasons: (f) This Certificate is given without prejudice to any rights against third parties that now exist or subsequently may come into being. IN WITNESS WHEREOF, the Authorized Borrower Representative has set his or her hand as of the day of 20_. C -1 Authorized Borrower Representative By: [Name /Title] C -2 EXHIBIT D FHA LENDER'S CERTIFICATE TO TRUSTEE Pursuant to Section 3.4 of the Loan Agreement (the "Agreement ") between the City of Edina, Minnesota (the "Issuer ") and Yorktown Continental, LP, a Minnesota limited partnership (the "Borrower "), dated as of July 1, 2014, the undersigned Authorized Lender Representative hereby certifies that the deposit of $ into the Collateral Fund on , 20 was fully derived from HUD Funds or other Available Moneys. Capitalized terms used herein and not otherwise defined herein shall have the meanings given them in the Indenture referenced in the Agreement. This day of , 20_. By: Authorized Lender Representative [Name /Title] E -1 EXHIBIT E BORROWER'S CERTIFICATE TO TRUSTEE Pursuant to Section 3.4 of the Loan Agreement (the "Agreement ") between the City of Edina, Minnesota (the "Issuer ") and Yorktown Continental, LP, a Minnesota limited partnership (the "Borrower "), dated as of July 1, 2014, the undersigned Authorized Borrower Representative hereby certifies that the deposit of $ into the Collateral Fund on , 20 was fully derived from Available Moneys. Capitalized terms used herein and not otherwise defined herein shall have the meanings given them in the Indenture referenced in the Agreement. This day of 320 By: Authorized Borrower Representative [Name /Title] E -1 Draft 6/20/14 LOAN AGREEMENT BY AND BETWEEN THE CITY OF EDINA, MINNESOTA as Issuer F\_ ►117 YORKTOWN CONTINENTAL, LP, as Borrower Dated as of July 1, 2014 RELATING TO CITY OF EDINA, MINNESOTA MULTIFAMILY HOUSING REVENUE BONDS (YORKTOWN CONTINENTAL, LP PROJECT) SERIES 2014B With the exception of certain reserved rights, the interest of the City of Edina, Minnesota in this Loan Agreement has been assigned to U.S. Bank National Association, as trustee for the above - referenced bonds. This instrument drafted by: Dorsey & Whitney LLP 50 South Sixth Street Minneapolis, Minnesota 55402 TABLE OF CONTENTS PAGE ARTICLE 1 Definitions, Exhibits and Miscellaneous Section1.1 Definitions ........................................................................................... ..............................1 Section1.2 Exhibits ................................................................................................ ..............................4 Section1.3 Borrower's Acts ................................................................................... ..............................4 Section 1.4 Rules of Interpretation ......................................................................... ..............................4 ARTICLE 2 Representations of Issuer and Borrower Section 2.1 Representations of the Issuer ......................................................... ............................... Section 2.2 Representations of the Borrower ................................................... ............................... ARTICLE 3 Completion of Project Section 3.1 Acquisition, Rehabilitation and Equipping of Project by Borrower .... ..............................9 Section 3.2 Payment of Costs by Borrower ............................................................ ..............................9 Basic Payments ................................................................................... .............................14 Section 3.3 Authorization by Issuer ....................................................................... .............................10 Intentionally Omitted .......................................................................... .............................15 Section 3.4 Issuance of Bonds ............................................................................... .............................11 Additional Charges ............................................................................. .............................15 Section 3.5 Disbursements from Project Fund ...................................................... .............................11 Borrower's Obligations unconditional ................................................ .............................16 Section 3.6 Establishment of Completion Date ..................................................... .............................12 Assignment of Issuer's Rights ............................................................ .............................16 Section 3.7 Payment and Performance Bond ......................................................... .............................12 Borrower's Remedies ......................................................................... .............................17 Section 3.8 Enforcement of Contract ..................................................................... .............................12 Section 3.8 Title Insurance .................................................................................... .............................13 ARTICLE 4 The Loan, Basic Payments, Additional Charges and Additional Financings Section4.1 The Loan ............................................................................................. .............................14 Section4.2 Basic Payments ................................................................................... .............................14 Section 4.3 Intentionally Omitted .......................................................................... .............................15 Section 4.4 Additional Charges ............................................................................. .............................15 Section 4.5 Borrower's Obligations unconditional ................................................ .............................16 Section 4.6 Assignment of Issuer's Rights ............................................................ .............................16 Section 4.7 Borrower's Remedies ......................................................................... .............................17 ARTICLE 5 Project Covenants Section 5.1 Project Operation and Maintenance .................................................... .............................18 Section 5.2 Sale or Lease of Project ...................................................................... .............................18 Section5.3 Mortgage ............................................................................................. .............................18 Section5.4 Advances ............................................................................................. .............................18 Section 5.5 Alterations to the Project and Removal of Project Equipment ........... .............................18 Section5.6 Insurance ............................................................................................. .............................18 Section 5.7 Damage or Destruction ....................................................................... .............................20 Section 5.8 Condemnation ..................................................................................... .............................21 Remedies ............................................................................................. .............................33 Section 5.9 Intentionally Omitted .......................................................................... .............................22 ........................26 Section 5.10 Hazardous Materials ........................................................................... .............................22 Nonexclusive Remedies ...................................................................... .............................34 Section 5.11 Release of Real Property ..................................................................... .............................23 Attorneys' Fees and Expenses ............................................................ .............................34 ARTICLE 6 Damage, Destruction and Condemnation Section 6.1 Damage and Destruction ..................................................................... .............................25 Section6.2 Condemnation ..................................................................................... .............................25 ARTICLE 7 Borrower's Covenants Section 7.1 Covenant for the Benefit of the Trustee and Bondholders .................. .............................26 Section 7.2 Inspection and Access ......................................................................... .............................26 Remedies ............................................................................................. .............................33 Section 7.3 Annual Statement, Audit, Certificate of Compliance and Other Reports ........................26 Section 7.4 Indemnity by Borrower ....................................................................... .............................27 Nonexclusive Remedies ...................................................................... .............................34 Section7.5 Status of Borrower .............................................................................. .............................28 Attorneys' Fees and Expenses ............................................................ .............................34 Section 7.6 Filing of Financing Statement ............................................................. .............................28 Effect of Waiver .................................................................................. .............................34 Section 7.7 Assurance of Tax Exemption .............................................................. .............................29 Waiver of Stay or Extension ............................................................... .............................34 Section 7.8 Determination of Taxability ................................................................ .............................31 Issuer May File Proofs of Claim ......................................................... .............................34 Section 7.9 Subordination of Management Fees ................................................... .............................31 Restoration of Positions ...................................................................... .............................35 ARTICLE 8 Borrower's Options Section 8.1 Assignment and Transfer .................................................................... .............................32 Section8.2 Prepayment ......................................................................................... .............................32 Section 8.3 Direction of Investments ..................................................................... .............................32 ARTICLE 9 Events of Default and Remedies Section 9.1 Events of Default ................................................................................ .............................33 Section9.2 Remedies ............................................................................................. .............................33 Section 9.3 Disposition of Funds ........................................................................... .............................34 Section 9.4 Nonexclusive Remedies ...................................................................... .............................34 Section 9.5 Attorneys' Fees and Expenses ............................................................ .............................34 Section9.6 Effect of Waiver .................................................................................. .............................34 Section 9.7 Waiver of Stay or Extension ............................................................... .............................34 Section 9.8 Issuer May File Proofs of Claim ......................................................... .............................34 Section 9.9 Restoration of Positions ...................................................................... .............................35 Section 9.10 Suits to Protect the Project .................................................................. .............................35 Section 9.11 Performance by Third Parties ............................................................. .............................35 Section 9.12 Exercise of the Issuer's Remedies by Trustee .................................... .............................35 Section 9.13 Limited Recourse ................................................................................ .............................35 ARTICLE 10 11 General Provisions Section 10.1 Amounts Remaining in Funds ............................................................ .............................37 Section10.2 Notices ................................................................................................ .............................37 Section10.3 Binding Effect ..................................................................................... .............................38 Section10.4 Severability ......................................................................................... .............................38 Section 10.5 Amendments, Changes, and Modifications ........................................ .............................38 Section 10.6 Execution Counterparts ....................................................................... .............................38 Section 10.7 Required Approvals ............................................................................ .............................38 Section 10.8 Limitation on Issuer's Liability .......................................................... .............................38 Section 10.9 Representations' of Borrower ............................................................. .............................38 Section10.10 Termination ......................................................................................... .............................38 Section 10.11 Administrative Fees, Attorneys' Fees and Costs ................................ .............................38 Section10.12 Release ................................................................................................ .............................39 Section10.13 Audit Expenses ................................................................................... .............................39 EXHIBITS Exhibit A: Legal Description of the Project Premises ..................................... ............................... A -1 in LOAN AGREEMENT THIS LOAN AGREEMENT is made and entered into as of the 1st day of July, 2014, by and between the City of Edina, Minnesota, a body corporate and politic and a political subdivision of the State of Minnesota (the "Issuer "), and Yorktown Continental, LP, a Minnesota limited partnership (the `Borrower "). The Issuer and Borrower, each in consideration of the representations, covenants and agreements of the other as set forth herein, mutually represent, covenant and agree as follows: ARTICLE 1 DEFINITIONS, EXHIBITS AND MISCELLANEOUS Section 1.1 Definitions. In this Agreement, the following terms have the following meanings, unless the context clearly requires otherwise, and any other capitalized terms defined in Section 1.1 of the Indenture (incorporated herein by reference) shall have the same meanings when used herein as assigned them in the Indenture unless the context or use thereof indicates another or different meaning or intent: Agreement or Loan Agreement: this Loan Agreement by and between the Issuer and Borrower, as the same may from time to time be amended or supplemented as provided herein and in the Indenture; Bond Purchase Agreement: the Bond Purchase Agreement dated July _, 2014, by and among the Issuer, the Borrower and the Underwriter pursuant to which the Underwriter agreed to purchase the Bonds; Completion Date: the date the Borrower certifies that the rehabilitation of the Project has been completed; Date of this Agreement: July 1, 2014; [Disbursing Agreement: the Disbursing Agreement, dated as of July 1, 2014, entered into by the Borrower, the Trustee and Title, specifying the conditions for the disbursement of Bond proceeds to pay Project Costs;] Event of Default: any of the events set forth in Section 9.1 hereof; Issuer: the City of Edina, Minnesota, or any successor thereto; Indenture: the Indenture of Trust, dated as of July 1, 2014, by and between the Issuer and Trustee, as the same may from time to time be amended or supplemented as therein provided; Independent: when used with reference to an attorney, engineer, architect, certified public accountant, consultant or other professional person, means a person who (a) is in fact independent, (b) does not have any material financial interest in the Borrower or the transaction to which his certificate or opinion relates (other than payment to be received for professional services rendered), and (c) is not connected with the Issuer or the Borrower as an officer, director or employee; Independent Counsel: means an Independent attorney duly admitted to practice law before the highest court of any state; Independent Engineer: means an Independent engineer or engineering firm or an Independent architect or architectural firm qualified to practice the profession of engineering or architecture under the laws of Minnesota; Issuance Expenses: any and all costs and expenses relating to the issuance, sale and delivery of the Bonds incurred or payable by the Borrower, including, but not limited to, Underwriter's discount, all fees and expenses of legal counsel, the Trustee, financial consultants, feasibility consultants and accountants, any fee to be paid to the Issuer, the preparation and printing of this Loan Agreement, the Indenture, the Disbursing Agreement, the Regulatory Agreement, the Mortgage, the Security Documents, any preliminary and final official statement or offering memorandum, the Bonds and all other related closing documents, the costs of rating the Bonds, and all other expenses relating to the issuance, sale and delivery of the Bonds and any other costs which are treated as "issuance costs" within the meaning of Section 147(g) of the Code; Loan: the loan of Bond proceeds by the Issuer to the Borrower pursuant to Section 4.1 hereof, Net Bond Proceeds: proceeds of the Bonds, including interest earnings thereon, less such proceeds of the Bonds, including interest earnings thereon, used to fund any reserve fund; Net Proceeds: means, when used with respect to proceeds of insurance or a condemnation award, moneys received or receivable by the Borrower as owner or the Trustee as secured party of the Project, less the cost of recovery (including attorneys' fees) of such moneys from the insuring company or the condemning authority; Net Revenues: the excess of revenues over expenses of the Borrower before depreciation, interest and amortization of financing expenses, as determined in accordance with generally accepted accounting principles; for purposes of this Agreement, Net Revenues shall exclude (i) any items properly classified as extraordinary in accordance with generally accepted accounting principles, and (ii) any gain arising from the sale or other disposition of any assets of the Borrower other than current assets; Permitted Encumbrances: shall have the meaning specified in [Section 5] of the Mortgage; Project Costs: the cost items enumerated in Section 3.2 hereof; Series A Bonds: the Issuer's Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014A, in the original aggregate principal amount of $ ; Single Purpose Entity: a Person, other than an individual, which is formed or organized solely for the purpose of directly holding an ownership interest in the Project, does not engage in any business unrelated to the Project, does not have any assets other than those related to its interest in such Project, has its own separate books and records and has its own accounts, in each case which are separate and apart from the books and records and accounts of any other Person, and holds itself out as being a Person, separate and apart from any other Person. In addition to the foregoing, with respect to the Borrower, a Single - Purpose Entity shall also be as follows: (i) a Person which is and at all times since its formation has been (a) a duly formed and existing Person which is either not treated as a taxpayer under the tax laws of any governmental authority or (I) treated as a taxpayer under any tax law of any governmental 2 authority and (I1) has tax liability which is adequately provided for, and, (b) duly qualified as a foreign Person in each jurisdiction in which such qualification was or may be necessary for the conduct of its business; (ii) a Person which is in compliance with, and at all times since its formation has complied with, the provisions of its organizational documents and the laws of its jurisdiction of formation; (iii) a Person which has at all times since its formation observed all customary formalities regarding its existence; (iv) a Person which (a) has at all times since its formation accurately maintained its financial statements, accounting records and other books and records separate from those of any Person, (b) has not at any time since its formation commingled its assets with those of any Person and (c) has at all times since its formation accurately maintained its own bank accounts, payroll and separate books of account; (v) a Person which has at all times since its formation paid its own liabilities from its own separate assets; (vi) a Person which (a) has at all times since its formation identified itself in all dealings with the public, under its own name or under any "doing business as" name (provided such "doing business as" name is used exclusively by such Person) and as a separate and distinct entity and (b) has not at any time since its formation identified itself as being a division or a part of any other entity and (c) has not at any time since its formation identified any other Person as being a division or part of such Person; (vii) a Person which has been at all times since its formation adequately capitalized in light of the nature of its business; (viii) a Person which, except with respect to obligations and liabilities set forth in this Agreement and in the Collateral Documents, and except with respect to the Series A Bonds, has not at any time since its formation incurred, assumed or guaranteed any indebtedness (contingent or otherwise) or the liabilities of any Person or has not at any time since its formation acquired obligations or securities of any Person or has not at any time since its formation made loans or advances to any Person; and (ix) a Person which has not at any time since its formation entered into and was not a party to any transaction with any affiliate, except in the ordinary course of business of such Person on terms which are no less favorable to such Person than would be obtained in a comparable arm's - length transaction with an unrelated third party. Term of this Agreement: the period of time commencing on the Date of this Agreement and terminating on the date set forth in Section 10.10 or such earlier date as provided by Sections 7.8 or 8.2, whichever date occurs sooner; Title: [Commercial Partners Title, LLCJ Working Capital Expense: any cost that is not properly chargeable to the Project's capital account within the meaning of the Code. Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: (1) Exhibit A: legal description of the Project Premises Section 1.3 Borrower's Acts. Where the Borrower is permitted or required to do or accomplish any act or thing hereunder, the Borrower may cause the same to be done or accomplished by a third party selected by the Borrower with the same force and effect as if done or accomplished by the Borrower. Section 1.4 Rules of Interpretation. (1) This Agreement shall be interpreted in accordance with and governed by the laws of the State. (2) The words "herein ", "hereof' and "hereunder" and words of similar import, without reference to any particular section or subdivision, refer to this Agreement as a whole rather than to any particular section or subdivision of this Agreement. (3) References in this instrument to any particular article, section or subdivision hereof are to the designated article, section or subdivision of this instrument as originally executed. (4) All accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles; and all computations provided for herein shall be made in accordance with generally accepted accounting principles consistently applied and applied on the same basis as in prior years. (5) The Table of Contents and titles of articles and sections herein are for convenience of reference only and are not a part of this Agreement, and shall not define or limit the provisions hereof. (6) Unless the context hereof clearly requires otherwise, the singular shall include the plural and vice versa and the masculine shall include the feminine and vice versa. (7) Articles, sections, subsections and clauses mentioned by number only are those so numbered which are contained in this Agreement. (8) For purposes of this Agreement and the Indenture, an Act of Bankruptcy shall be deemed no longer in effect if either (a) the petition initiating the Act of Bankruptcy is dismissed by order of a court of competent jurisdiction and no further appeal rights exist from such order or (b) the Borrower notifies the Trustee that such a dismissal has occurred. (9) Any opinion of counsel required hereunder shall be a written opinion of such counsel. (10) References to the Bonds as "tax exempt" or to the "tax exempt status of the Bonds" are to the exclusion of interest on the Bonds from gross income pursuant to Section 103(a) of the Code, irrespective of such forms of taxation as the alternative minimum tax or branch profits tax on foreign corporations, as is consistent with the approach taken in Section 59(i) of the Code. ARTICLE 2 REPRESENTATIONS OF ISSUER AND BORROWER Section 2.1 Representations of the Issuer. The Issuer makes the following representations and warranties as the basis for its covenants herein: (1) The Issuer is a body corporate and politic organized and existing under the laws of the State of Minnesota and is authorized to issue the Bonds to finance the Project pursuant to the Act; (2) In authorizing the Project, the Issuer's purpose is, and in its judgment the effect thereof will be, to promote the public welfare by continuing to provide a multifamily rental housing development within the meaning of the Act and assisting persons within the Issuer to obtain decent, safe and sanitary housing at rentals they can afford; and facilitating the development of rental housing opportunities for residents of the Issuer; (3) A public hearing on the proposal to finance the Project was called and held on June 17, 2014, at which time all persons who appeared were given an opportunity to express their views with respect to the proposal to undertake and finance the Project; (4) The issuance and sale of the Bonds, the execution and delivery of this Agreement, the Indenture, the Regulatory Agreement, the Bond Purchase Agreement and the Assignment of Mortgage, and the performance of all covenants and agreements of the Issuer contained in this Agreement, the Regulatory Agreement, the Bond Purchase Agreement, the Assignment of Mortgage and the Indenture and of all other acts and things required under the Constitution and laws of the State to make this Agreement, the Indenture and the Bonds valid and binding obligations of the Issuer in accordance with their terms, are authorized by the Act and have been duly authorized by resolutions of the governing body of the Issuer adopted at a meeting thereof duly called and held on July _, 2014, by the affirmative vote of not less than a majority of the governing body's members; (5) Under the provisions of the Indenture, the Issuer's interest in this Agreement (except for certain reserved or unassigned rights) and certain payments due hereunder are pledged and assigned to the Trustee as security for the payment of the principal and purchase price of, interest, and premium, if any, on the Bonds; and Section 2.2 Representations of the Borrower. The Borrower makes the following representations and warranties as the basis for its covenants herein: (1) The Borrower is a limited partnership duly organized under the laws of the State of Minnesota, is duly authorized to conduct its business in the State of Minnesota, has power to enter into this Agreement, the Bond Purchase Agreement, the Mortgage, the Disbursing Agreement, the Security Documents and the Regulatory Agreement, and to use the Project for the purpose set forth in this Agreement and by proper action has authorized the execution and delivery of this Agreement, the Regulatory Agreement, the Mortgage, the Disbursing Agreement, the Security Documents and the Bond Purchase Agreement, and has approved the Indenture; (2) The execution and delivery of this Agreement, the Regulatory Agreement, the Mortgage, the Disbursing Agreement, the Security Documents and the Bond Purchase Agreement, and the consummation of the transactions contemplated thereby, and the fulfillment of the terms and conditions thereof do not and will not conflict with or result in a breach of any of the terms or conditions of the Partnership Agreement of the Borrower, any restriction or any agreement or instrument to which the Borrower is now a party or by which it is bound or to which any property of the Borrower is subject, and do not and will not constitute a default under any of the foregoing, or cause the Borrower to be in violation of any order, decree, statute, rule or regulation of any court or any state or federal regulatory body having jurisdiction over the Borrower or its properties, including the Project, and do not and will not result in the creation or imposition of any lien, charge or encumbrance of any nature upon any of the property or assets of the Borrower contrary to the terms of any instrument or agreement to which the Borrower is a party or by which it is bound; (3) The design and plan of the Project comprise a multifamily rental housing development as contemplated by the Act; and subject to the other provisions of this Agreement, it is presently intended and reasonably expected that the equipment purchased from the proceeds of the Bonds will be permanently located and exclusively used on the Project Premises and that the Borrower will own and operate the Project on the Project Premises throughout the Term of this Agreement in the normal conduct of the Borrower's business; (4) There is public access to the Project Premises; and, as of the date hereof, the use of the Project complies, in all material respects, with all presently applicable development, pollution control, water conservation and other laws, regulations, rules and ordinances of the federal government and the State of Minnesota and the respective agencies thereof and the political subdivisions in which the Project is located; the Borrower has obtained or will obtain all necessary and material approvals of and licenses, permits, consents and franchises from federal, state, county, municipal or other governmental authorities having jurisdiction over the Project to acquire, rehabilitate, install, and operate the Project and to enter into, execute and perform its obligations under this Agreement, the Bond Purchase Agreement, and the Regulatory Agreement; (5) The proceeds of the Bonds, together with any other funds to be contributed to the Project by the Borrower or otherwise in accordance with this Agreement, will be sufficient to pay the cost of acquiring and renovating the Project in a manner suitable for operation as a multifamily housing development as required in Article 3; (6) The Bonds are issued within the exemption provided under Section 142(d) of the Code with respect to residential rental property; and "substantially all" of the proceeds of the Bonds will be used for expenditures chargeable to the capital account of the Project; (7) A major inducement to the Borrower to acquire, rehabilitate and equip the Project was the source of financing provided under the Act and the assurance the Borrower received from the Issuer that such financing would be made available to the Borrower; all Project Costs heretofore incurred by the Borrower for which the Borrower will seek reimbursement from the proceeds of the Bonds were incurred in anticipation of reimbursement from the proceeds of the Bonds of the Issuer if such proceeds should become available on terms acceptable to the Borrower; and the Borrower investigated the possibility of such financing prior to incurring such Project Costs; and the Borrower did not commence acquisition or renovation of the Project prior to March 21, 2014, which is 60 days prior to the date on which the Issuer gave preliminary approval of the Project and the financing thereof in whole or part through the Bonds; (8) The Borrower is not in the trade or business of selling properties such as the Project and the Borrower is acquiring the Project for investment purposes only or otherwise for use by the Borrower in its trade or business, and therefore the Borrower has no intention, now or in the foreseeable future to voluntarily sell, surrender or otherwise transfer, in whole or part, its interest in the Project; (9) There are no actions, suits, or proceedings pending or, to the knowledge of the Borrower, threatened against the Borrower or any property of the Borrower in any court or before any federal, state, el municipal or other governmental agency, which, if decided adversely to the Borrower, would have a material adverse effect upon the Borrower or upon the business or properties of the Borrower or upon the validity or enforceability of the instruments referred to in clause (1), or the ability of the Borrower to perform its obligations thereunder; and the Borrower is not in default with respect to any order of any court or governmental agency; (10) The Borrower is not in default in the payment of the principal of or interest on any indebtedness for borrowed money nor in default under any instrument or agreement under and subject to which any indebtedness for borrowed money has been issued; (11) The Borrower has filed all federal and state income tax returns which, to the knowledge of the Borrower, are required to be filed and has paid all taxes shown on said returns and all assessments and governmental charges received by it to the extent that they have become due; (12) To the best of the Borrower's knowledge, no public official of the Issuer has either a direct or indirect financial interest in this Agreement nor will any public official either directly or indirectly benefit financially from this Agreement within the meaning of Minnesota Statutes, Sections 412.311 and 471.87, as amended; (13) Except for the Series A Bonds, no other obligations have been or will be issued under Section 103 of the Code which are sold at substantially the same time as the Bonds, pursuant to the same plan of financing, which are reasonably expected to be paid out of substantially the same source of funds as the Bonds. (14) The Project is and will continue to be eligible for low income housing tax credits under Section 42 of the Code. (The remainder of this page is intentionally left blank.) ARTICLE 3 COMPLETION OF PROJECT Section 3.1 Acquisition, Rehabilitation and Equipping of Project by Borrower. In connection with the acquisition, rehabilitation, equipping and completion of the Project, the Borrower represents and covenants as follows: (1) Installation and Construction. The Borrower will acquire the Project and construct any improvements to the Project within the boundary lines of the Project Premises and will provide all other improvements, access roads, utilities, parking facilities, and other items required for a facility fully operable for use as a multifamily residential rental property. (2) Completion. The Borrower will acquire and rehabilitate the Project as promptly as practicable with all reasonable dispatch and in any event no later than , 20_, except only as completion may be delayed by strikes, riots or acts of God or the public enemy, shortages of materials or supplies or any other reason beyond the reasonable control of the Borrower for which a reasonable extension of the time of completion shall be granted as determined by the Trustee, provided that if the Project is not completed by that date there shall be no resulting liability on the part of the Issuer and no abatement or diminution in the payments required to be made by the Borrower under Article 4. Section 3.2 Payment of Costs by Borrower. The Borrower agrees that it will provide any and all money required for the prompt and full payment of all sums required to complete the Project, including all of the following items which the Issuer agrees will be reimbursable from Bond proceeds from and to the extent and in the manner provided in Sections 3.5 and 3.6 and subject to the provisions of the Act and the Code: (1) all expenses incurred and to be incurred in connection with the acquisition, renovation and installation of the Project, including but not limited to the cost of acquiring the Project, the contract price of all labor, services, materials, supplies and equipment furnished under any contract for renovation and installation of the Project, any developer fee or construction management fee or other amounts incurred in connection therewith, provided that such fee is not paid to the Borrower or an affiliate thereof, including the cost of all Project Equipment and all appurtenances thereto, and of all rights -of -way for access and utility connections to and from the Project, and all fees required for recording all financing statements and any real estate documents; (2) the expense of preparation of the plans and specifications for the Project, including utilities, and all other facilities necessary or desirable in connection therewith, and all other architectural, engineering and supervisory services incurred and to be incurred in the planning, rehabilitation and completion of the Facility; (3) all legal (including Bond Counsel and counsel to the Issuer, Borrower, Original Purchaser, and Trustee), abstractors', financial and accounting fees and expenses, administrative and rating agency fees (if any), printing and engraving costs and other expenses incurred and to be incurred on or before or in connection with the Completion Date with respect to (i) the establishment of title to the Project Premises, (ii) the authorization, sale and issuance of the Bonds, (iii) the preparation of this Agreement, the Indenture, the Regulatory Agreement, and all other documents necessary to the Bond Closing or required by this Agreement or the Indenture, (iv) the establishment of the Completion Date, including compliance with any governmental or administrative rules or regulations on or before such date, or (v) the administrative charges imposed by the Issuer pursuant to Section 4.4(2) in connection with the issuance of the Bonds; (4) premiums on all insurance (including any title insurance) required to be taken out and maintained during the period before the Completion Date; (5) all expenses incurred in seeking to enforce any remedy against any contractor, or any subcontractor or any supplier in respect of any default under any contract with such Person; (6) all deed taxes, mortgage registry taxes, recording fees and other taxes, charges and assessments and license and registration fees of every nature whatsoever incurred and to be incurred in connection with acquisition or completion of the Project including the financing thereof; (7) the cost of all other labor, services, materials, supplies and equipment necessary to complete the rehabilitation, acquisition and installation of the Project, including but not limited to the Project Equipment; (8) all fees and expenses of the Trustee and Paying Agent under the Indenture that become due on or before the Completion Date or in connection with the establishment of the Completion Date; and (9) without limitation by the foregoing, all other expenses which under accepted accounting practice constitute necessary capital expenditures for the completion of the Project or issuance of the Bonds, not including Working Capital Expenses (all of which, in excess of 3% of the Net Bond Proceeds, are nevertheless to be supplied by the Borrower from its own funds without reimbursement). All Project Costs may be paid or reimbursed from available moneys in the Project Fund to the extent and in the manner permitted in Sections 3.5 and 3.6. If, however, such moneys are insufficient to pay in full Project Costs payable therefrom or are otherwise unavailable to pay any Project Costs, the Borrower shall nevertheless promptly pay so much of such Project Costs as may be in excess of such available moneys in the Project Fund or shall, at the request of the Trustee, forthwith pay over to the Trustee such moneys as are necessary to pay such Project Costs. The Borrower shall not by reason of the payment of such excess Project Costs be entitled to any reimbursement from the Issuer in excess of any moneys available therefor in the Project Fund or for any abatement or diminution of the Basic Payments or Additional Charges. Section 3.3 Authorization by Issuer. In accordance with the Act, the Borrower is authorized by the Issuer, and the Borrower, pursuant to such authorization, agrees: (1) to acquire and renovate the Project and install the Project Equipment as provided in Section 3.1, upon the Project Premises; (2) to make, execute, acknowledge and deliver any contracts, orders, receipts, writings and instructions, with any other Persons, and in general to do all things which may be requisite or proper for acquiring, renovation and installing the Project; (3) pursuant to the provisions of this Agreement, to pay all fees, costs and expenses incurred in the acquisition, construction and installation of the Project from funds made available therefor in accordance with this Agreement or otherwise subject to the right to contest such fees, costs and expenses; (4) so long as the Borrower is not in default under any of the provisions of this Agreement to exercise all authority hereby conferred, which is granted and conferred irrevocably to the Completion Date and thereafter until all activities in connection with the acquisition, renovation and installation of the Project shall have been completed. Neither the authorization granted in this Section nor any other provision of this Agreement shall be construed as making the Borrower an agent or joint venturer with the Issuer. Section 3.4 Issuance of Bonds. The Issuer and Borrower have contracted for the sale of the Bonds authorized by the Indenture, and the Borrower has approved and does approve the terms of the Indenture. Forthwith upon execution of this Agreement, the Bond Purchase Agreement, the Indenture, the Regulatory Agreement and all other documents required to be executed by the aforementioned documents, or as soon thereafter as practicable, the Issuer will execute the Bonds and cause them to be authenticated by the Trustee and delivered to the Original Purchaser upon payment of the purchase price of the Bonds and filing with the Trustee of the opinion of Bond Counsel as to the legality of the Bonds and the furnishing of all other documents required by this Agreement, the Mortgage, the Disbursing Agreement, the Bond Purchase Agreement, the Security Documents and the Indenture to be furnished before delivery. The Issuer will cause the proceeds of the Bonds to be transmitted to the Trustee, who is required by the Indenture to deposit the same in the following trust funds in the following amounts: (1) [in the Capitalized Interest Fund, the sum of $ ; and] (2) [in the Project Fund, the remainder of the Bond proceeds.] If for any reason such documents are not furnished and the approving opinion of Bond Counsel in customary form cannot be obtained, then this Agreement shall be terminated and be void and of no effect and the Borrower shall be obligated to pay all costs and expenses enumerated in Section 3.2 and incurred on or before the date of such termination. Section 3.5 Disbursements from Project Fund. (1) The Issuer has in the Indenture authorized and directed the Trustee to disburse money from the Project Fund, subject to the Disbursing Agreement (except the disbursement of Issuance Expenses of the Bonds shall not be subject to the provisions of the Disbursing Agreement), to or upon the order of the Borrower, in payment or reimbursement of Project Costs enumerated in Section 3.2 and certified, in writing by the Borrower Representative, provided that in no event shall: (a) any Net Bond Proceeds be used to pay or reimburse for the payment of the acquisition of any property other than land (or an interest therein) unless the first use of such property is pursuant to such acquisition (except for certain rehabilitations where rehabilitation expenditures equal at least 15% of the cost of acquiring such property); (b) 25% or more of Net Bond Proceeds to be used to pay or reimburse for the payment of the acquisition of land; (c) any Net Bond Proceeds, including earnings thereon, be used to pay or reimburse for the payment of any Working Capital Expenses in excess of 3% of the Net Bond Proceeds. (2) The cost of acquiring the Project Premises and the Project Costs described in Section 3.2(3), (4), (5), (6) and (8) may be paid or reimbursed in full upon receipt by the Trustee of any statement of the payee covering such expenses endorsed by the payee and approved by the Borrower Representative 10 or, with respect to fees of Bond Counsel, Issuer's Counsel or other fees of the Trustee or Issuer or printing expenses, of the Issuer. With respect to all other Project Costs, each certificate of the Borrower Representative shall contain the following additional information: (a) the amount and nature of each item of Project Costs and the name and address of the payee, with the payee's statement and if reimbursement is requested, evidence of payment thereof attached; (b) a statement that each item for which payment or reimbursement is requested is or was necessary in connection with the Project, qualifies as a Project Cost under this Agreement and, if for the rehabilitation or equipping of the Project, was made or incurred in accordance with the plans and specifications for the Project and that none of such items has formed the basis for any previous payment from the Project Fund; (c) a statement that there is no outstanding indebtedness known, after due inquiry, for labor, wages, materials or supplies which, if unpaid, might become the basis of a vendor's lien, or a mechanics' materialmen's, statutory or other similar lien upon the Project or any part thereof, other than indebtedness then certified for payment or diligently being contested in good faith by the Borrower and that each contractor, subcontractor and materialman has filed with the Borrower receipts or waivers of liens for all amounts theretofore certified for payment, or any amount therein certified for reimbursement to the Borrower for payment, for work, materials and equipment furnished by him or that there is on file with the construction manager a cancelled check endorsed by the contractor, subcontractor or materialman evidencing such payment; (d) a statement that no Working Capital Expenses are being certified for payment from the Project Fund. (3) If Title shall request it, each Borrower Representative's certificate shall be approved by Title before the Borrower shall be entitled to payment from the Project Fund, and if requested by Title the lien waivers, receipts or cancelled checks specified above or copies thereof (if acceptable to such insurer) shall be filed with Title instead of the Trustee. Section 3.6 Establishment of Completion Date. On the Completion Date any balance remaining in the Project Fund in excess of the amount retained therein pursuant to the Disbursing Agreement shall be disbursed by the Trustee to the Borrower or its order in such amount as may be necessary (and all thereof shall be disbursed if necessary) to pay, or to reimburse to the Borrower for the payment of, any part of the Project Costs which have not theretofore been paid by the Borrower or has not theretofore been reimbursed to the Borrower, as the case may be, in accordance with the provisions of Section 3.5. Any balance remaining in the Project Fund in excess of any amount retained therein to secure completion by any contractor shall be transferred by the Trustee to the Bond Fund and used to redeem the Bonds in accordance with Section 3.1(2) of the Indenture. Section 3.7 Payment and Performance Bond. The requirement for any payment and performance bond is hereby waived. Section 3.8 Enforcement of Contract. In the event of default of any contractor or subcontractor under any construction contract or in the event of a breach of warranty with respect to any materials, workmanship or performance, the Borrower will promptly proceed, either separately or in conjunction with others, to exhaust its remedies against the contractor, subcontractor or vendor in default and against any surety on a bond securing the performance of such contract, provided, however, that the Borrower may on the advice of its counsel and with the Trustee's consent refrain from exhausting such 11 remedies if determined by the Borrower not to be in its best interests and not necessary to complete the Project. The Borrower will promptly advise the Trustee of the steps it intends to take in connection with any such default. Any amounts recovered pursuant to any bond or by way of damages, refunds, adjustments or otherwise in connection with the foregoing, after deduction of expenses incurred in such recovery, other than any amounts resulting from the loss of income, shall be paid into the Project Fund if received before the Completion Date, and otherwise shall be paid into the Bond Fund, provided that the Borrower may obtain reimbursement for any payments made by the Borrower in connection with such action as an item of Project Cost as provided in Section 3.5. Section 3.9 Title Insurance. In connection with the Bond Closing, the Borrower agrees to furnish to the Trustee a commitment for a mortgagee's policy of title insurance issued by Title in an amount not less than the original principal amount of the Bonds, insuring: (1) that fee title to the Project Premises is in the Borrower; (2) that the Mortgage is a [second mortgage lien] upon the Project Premises subject only to Permitted Encumbrances; and (3) that the Project and its use do not violate any zoning or other use restrictions covering the Project Premises and provides the coverage included within the standard zoning endorsement; and (4) waiving and insuring over the following standard exceptions: (a) facts which would be disclosed by a comprehensive survey of the premises, (b) mechanics', contractors or materialmen's liens and lien claims and (c) rights of parties in possession. (The remainder of this page is intentionally left blank.) 12 ARTICLE 4 THE LOAN, BASIC PAYMENTS, ADDITIONAL CHARGES AND ADDITIONAL FINANCING Section 4.1 The Loan. The Issuer agrees, upon the terms and conditions herein specified, to lend to the Borrower the proceeds received by the Issuer from the sale of the Bonds, by causing such proceeds to be deposited with the Trustee for disposition as provided herein and in the Indenture. The amount of the Loan shall be deemed to include any "discount" or any other amount by which the aggregate price at which the Issuer sells the Bonds to the Underwriter is less than the aggregate principal amount of the Bonds; and the obligation of the Issuer to make the Loan shall be deemed fully discharged upon so depositing the proceeds of the Bonds with the Trustee. Section 4.2 Basic Payments. Subject to the Borrower's right of prepayment granted in Section 8.2, the Borrower agrees to repay the Loan in installments of Basic Payments as follows: (1) During the term of this Agreement, the Borrower shall make Basic Payments in immediately available funds as follows: (a) On or before each Interest Payment Date, an amount which, together with any balance on hand in the Bond Fund or the Capitalized Interest Fund and available for that purpose, will equal the total interest due on all Outstanding Bonds on such Interest Payment Date. (b) On 1, 20_, an amount which is not less than the principal amount due on the Outstanding Bonds on the maturity date of the Bonds. (c) [The Borrower will promptly deposit the proceeds of the Assigned Capital Contributions, the HOME Loan Proceeds loaned by the Issuer to the Borrower, the GP Capital Contributions contributed by the General Partner to the Borrower, and the Sponsor Loan Proceeds loaned by the Sponsor to the Borrower (or such lesser amounts as the Trustee shall advise are necessary to provide funds sufficient to redeem the Bonds in full pursuant to Section 3.1(3) of the Indenture), when and if received, with the Trustee with written instructions to deposit the amounts in the Bond Fund for application to the mandatory redemption of the Bonds pursuant to Section 3.1(3) of the Indenture. The Borrower and the Issuer acknowledge that (1) the aggregate proceeds of the Assigned Capital Contributions, the HOME Loan Proceeds loaned by the Issuer to the Borrower, the GP Capital Contributions and the Sponsor Loan Proceeds are expected to exceed the amount necessary to redeem the Bonds in full, and (2) the Borrower will only be required to deposit with the Trustee that portion of the Sponsor Loan Proceeds as is necessary to redeem the Bonds in full pursuant to Section 3.1(3) of the Indenture, as determined and advised by the Trustee, and the remainder of such Sponsor Loan Proceeds may be retained by the Borrower. The Investor Limited Partner has agreed with the General Partner in the Partnership Agreement to deposit the Assigned Capital Contributions directly to the Trustee on behalf of the Borrower, to be disbursed pursuant to the terms of the Indenture, provided, however, that notwithstanding anything contained herein to the contrary, the obligations of the Investor Limited Partner to make any equity contributions to the Borrower are governed solely by, and subject to the conditions, terms and provisions of, the Partnership Agreement. The Issuer has agreed to deposit the HOME Loan Proceeds directly to the Trustee on behalf of the Borrower, to be disbursed pursuant to the terms of the Indenture, provided, however, that notwithstanding anything contained herein to the contrary, the obligations of the Issuer to advance any HOME Loan Proceeds to the Borrower are governed solely by, and subject to the conditions, terms and 13 provisions of, the HOME Loan Repayment Agreement The General Partner has agreed in the Partnership Agreement to deposit the GP Capital Contributions directly to the Trustee on behalf of the Borrower, to be disbursed pursuant to the terms of the Indenture, and to be contributed in accordance with the conditions, terms and provisions of, the Partnership Agreement. The Sponsor has agreed to deposit the Sponsor Loan Proceeds (or such lesser amount as the Trustee shall advise is necessary to provide funds sufficient to redeem the Bonds in full pursuant to Section 3.1(3) of the Indenture) directly to the Trustee on behalf of the Borrower.] (d) In any event the sum of the Basic Payments payable under this Section shall be sufficient to pay all principal, interest and premium, if any, on the Bonds as such principal, interest and premiums become due, at maturity, upon redemption, acceleration or otherwise. (2) All payments of Basic Payments shall be made directly to the Trustee at its corporate trust office, for the account of the Issuer and shall be deposited by the Trustee in the Bond Fund. In the event the Borrower should fail to make any of the payments required in this Section 4.2, the item so in default shall continue as an obligation of the Borrower until the amount in default shall have been fully paid, and the Borrower agrees to pay the same with interest thereon (including to the extent permitted by law, interest on overdue installments of interest) at the rate borne by the respective Bonds as to which such default exists. (3) As provided in Internal Revenue Service Revenue Procedure 79 -5, Revenue Procedure 81 -22 and 26 CFR 601.201 (and any subsequent amendments, modifications or replacements thereof) Restricted Project Funds in the Bond Fund shall be used only to prepay Bonds which are subject to redemption at their earliest call date without penalty or premium or to pay a pro rata portion of the principal of the Bonds as provided in Section 5.3(2) of the Indenture. (4) Except during the continuance of an Event of Default, all available remaining sums on deposit in the Bond Fund not credited against currently payable installments of Basic Payments or applied as provided in Sections 7.8 or 8.2 shall be credited against the last installments of Basic Payments. (5) In no event shall any purchase of any Bonds made by or on behalf of the Borrower result in the discharge of either (a) the Bonds so purchased, (b) the obligations under this Section 4.2 to make Basic Payments relating to the Bonds so purchased, or (c) the Loan made hereunder to the extent of the Bonds so purchased, unless and to the extent the Bonds so purchased are surrendered to the Trustee and canceled. (6) [So long as the Series A Bonds are Outstanding, the Borrower shall repay this Loan Agreement solely from the Assigned Capital Contributions, the HOME Loan Proceeds, the GP Capital Contributions, the Sponsor Loan Proceeds and certain other property that may be received by the Trustee pursuant to the Security Documents.] Section 4.3 Intentionally Omitted. Section 4.4 Additional Charges. The Borrower agrees to pay, when due, each and all of the following: (1) to or upon the order of the Trustee, when due, all reasonable fees of the Trustee for services rendered under the Indenture and all reasonable fees and charges of the Paying Agent, registrars, legal counsel, accountants, engineers, public agencies and others incurred in the performance on request of the Trustee of services required under the Indenture for which the Trustee and such other Persons are 14 entitled to payment or reimbursement, provided that the Borrower may, without creating a default hereunder, contest in good faith the necessity or reasonableness of any such services, fees or expenses; (2) the reasonable fees and expenses of counsel for the Issuer and an administrative fee equal to ; (3) to the Trustee, the amount of all advances made by the Trustee, with interest thereon, as provided in Section 5.4; (4) to the Issuer or Trustee, as the case may be, interest at the rate equal to I% over the prime rate on each payment commencing on the date when due and required in this Section to be made to the Issuer or Trustee, if not made when due and if not advanced by the Trustee under the Indenture; and (5) any costs incurred by the Trustee or Original Purchaser in the preparation of printed bonds. Section 4.5 Borrower's Obligations Unconditional. All Basic Payments and Additional Charges and all other payments required of the Borrower hereunder shall be paid without notice or demand and without setoff, counterclaim, or defense for any reason and without abatement or deduction or defense (except as provided in Sections 8.2 and 9.13). The Borrower will not suspend or discontinue any such payments, and will perform and observe all of its other agreements in this Agreement, and, except as expressly permitted in Sections 7.8 and 8.2, will not terminate this Agreement for any cause, including but not limited to any acts or circumstances that may constitute failure of consideration, destruction or damage to the Project or the Borrower's business, the taking of the Project or the Borrower's business by Condemnation or otherwise, the lawful prohibition of the Borrower's use of the Project or the Borrower's business, the interference with such use by any Person, the invalidity or unenforceability or lack of due authorization or other infirmity of this Agreement, the lack of right, power or authority of the Issuer to enter into this Agreement, eviction by paramount title, commercial frustration of purpose, bankruptcy or insolvency of the Issuer or Trustee, change in the tax or other laws or administrative rulings or actions of the United States of America or of the State or any political subdivision thereof, or failure of the Issuer to perform and observe any agreement, whether express or implied, or any duty, liability or obligation arising out of or connected with this Agreement, or for any other cause whether similar or dissimilar to the foregoing, any present or future law to the contrary notwithstanding, it being the intention of the parties hereto that the Basic Payments and other amounts payable by the Borrower hereunder shall be paid in full when due without any delay or diminution whatever. Section 4.6 Assignment of Issuer's Rights. As security for the payment of the Bonds, the Issuer will pledge the amounts payable hereunder and assign, without recourse or liability, to the Trustee, the Issuer's rights under this Agreement, including the right to receive payments hereunder (except the right to receive payments, if any, under Sections 3.2, 4.4, 7.4, 9.5, 10.8, 10.11, 10.12, and 10.13 hereof) and hereby directs the Borrower to make said payments directly to the Trustee. The Borrower herewith assents to such assignment and will make payments under this Agreement directly to the Trustee without defense or setoff by reason of any dispute between the Borrower and the Trustee. Section 4.7 Borrower's Remedies. Nothing contained in this Article shall be construed to release the Issuer from the performance of any of its agreements herein, and if the Issuer should fail to perform any such agreements, the Borrower may institute such action against the Issuer as the Borrower may deem necessary to compel such performance so long as such action shall not violate the Borrower's agreements in Section 4.4 or diminish or delay the amounts required to be paid by the Borrower pursuant to Section 4.2. The Borrower acknowledges, however, and agrees that any pecuniary obligation of the 15 Issuer created by or arising out of this Agreement shall be payable solely out of the proceeds derived from this Agreement and the sale of the Bonds. 16 ARTICLE 5 PROJECT COVENANTS Section 5.1 Project Operation and Maintenance. The Borrower shall pay all expenses of the operation and maintenance of the Project including, but without limitation, adequate insurance thereon and insurance against all liability for injury to Persons or property arising from the operation thereof, and all taxes and special assessments levied upon or with respect to the Project and payable during the Term of this Agreement and further described in this Article 5. Section 5.2 Sale or Lease of Project. So long as any Bonds are Outstanding, the Borrower will not lease the Project (except leases in the normal course of business), in whole or in part, nor sell, mortgage or otherwise encumber its interests in the Project, in whole or part, except for Permitted Encumbrances and except as provided in Sections 8.1 and 7.5, provided that in no event shall such lease, assignment or sale be permitted if (1) the effect thereof would be to impair the validity or the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, or (2) if any such transaction should release the Borrower of any of its obligations under this Agreement (except as otherwise provided in Section 8.1). Before any such lease, sale or assignment, the Borrower shall deliver to the Trustee an opinion of Bond Counsel, addressed to the Trustee and in form and substance satisfactory to it, stating in effect that such lease, sale or assignment will not cause interest on the Bonds to be included in gross income for purposes of federal income taxation. The Borrower shall give at least 30 days notice to the Trustee and Issuer of any such sale, assignment or lease, unless such 30 day notice is waived by the Trustee and the Issuer. Section 5.3 Mortgage and the Security Documents. In consideration of the Loan, and as security for the Basic Payments to be made by the Borrower for the payment of the Bonds, and as security for the performance of all of the other obligations, agreements and covenants of the Borrower to be performed and observed hereunder, the Borrower shall execute and cause the Security Documents to be delivered and, with respect to the Mortgage, recorded and shall keep, perform and observe each of its obligations thereunder. Section 5.4 Advances. The Borrower acknowledges and agrees that under the Indenture the Trustee may take certain action and make certain advances relating to the Project or to certain other matters as expressly provided therein, and the Borrower shall be obligated to repay all such advances on demand, with interest from the date of each such advance, at the rate and under the conditions set forth in the Indenture. Section 5.5 Alterations to the Project and Removal of Project Equipment. The Borrower shall have the right from time to time, at its cost and expense, to remodel and make such additions, modifications, alterations, improvements and changes (collectively referred to as "alterations ") in or to the Project or to remove any equipment therefrom as the Borrower, in its discretion, may deem to be desirable for its uses and purposes, provided such alterations or removal do not impair the character of the Project as a "project' within the meaning of the Act or otherwise impair the exclusion from gross income under Section 103 of the Code of the interest on the Bonds. Section 5.6 Insurance. The Borrower shall maintain, or cause to be maintained, at its cost and expense, insurance as follows: (1) Insurance against loss and/or damage to the Project under a policy or policies covering such risks as are ordinarily insured against by similar businesses, including (without limiting the 17 generality of the foregoing) fire and extended coverage in an amount not less than 100% of the full insurable replacement cost of the Project but any such policy may have a deductible amount of not more than $100,000. No policy of insurance shall be so written that the proceeds thereof will produce less than the minimum coverage required by the preceding sentence, by reason of co- insurance provisions or otherwise, without the prior consent thereto in writing by the Trustee. The term "full insurable replacement cost" shall mean the actual replacement cost of the Project (excluding foundation and excavation costs and costs of underground flues, pipes, drains and other uninsurable items) and equipment. All policies evidencing insurance required by this subparagraph (1) with respect to the Project shall be carried in the names of the Borrower and the Trustee as their respective interests may appear and shall contain standard mortgage clauses which provide for Net Proceeds of insurance resulting from claims per casualty thereunder to the Project which are less than $100,000 for loss or damage covered thereby to be made payable directly to the Borrower, and Net Proceeds from such claims which are equal to or in excess of $100,000 to be made payable directly to the Trustee. The Net Proceeds of such insurance required by this paragraph (1) with respect to the Project shall be applied as provided in Sections 5.7 and 5.8 hereof. (2) Comprehensive general public liability insurance, including personal injury liability, and, if the Borrower owns or leases any automobiles, automobile insurance, including owned, non -owned and hired automobiles, against liability for injuries to persons and /or property, in the minimum amount for each occurrence and for each year of $1,000,000, for public liability not arising from ownership or operation of automobiles (or other motor vehicles), and in the minimum amount of $500,000 for each occurrence and for each year for liability arising out of ownership or operation of automobiles (or other motor vehicles) and shall be endorsed to show the Trustee and Issuer as an additional insured. (3) Business interruption insurance or rental loss insurance covering actual losses in gross operating earnings of the Borrower resulting directly from necessary interruption of business caused by damage to or destruction (resulting from fire and lightning; accident to a fired - pressure vessel or machinery; and other perils, including windstorm and hail, explosion, civil commotion, aircraft and vehicles, sprinkler leakage, smoke, vandalism and malicious mischief, and accident) to real or personal property constituting part of the Project, less charges and expenses which do not necessarily continue during the interruption of business, for such length of time as may be required with the exercise of due diligence and dispatch to rebuild, repair or replace such properties as have been damaged or destroyed, with limits equal to at least the sum of 12 months' operating expenses of the Project, plus the maximum amount of principal of (other than the principal amount due on the maturity date of the Bonds) and interest payable on the Outstanding Bonds in the current or any future calendar year. (4) Such other insurance, including workers' compensation insurance respecting all employees of the Borrower, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure, provided that the Borrower may be self - insured with respect to all or any part of its liability for workers' compensation. All insurance required in this Section shall be taken out and maintained in responsible insurance companies selected by the Borrower which are authorized under the laws of Minnesota to assume the risks covered thereby. The Borrower will deposit annually with the Trustee copies of policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Each policy shall contain a provision that the insurer shall not cancel nor modify it without giving written notice to the Borrower and the Trustee at least 30 days before the cancellation or modification becomes effective. Not less than 30 days prior to the expiration of any policy, the Borrower shall furnish the Trustee evidence satisfactory to the Trustee that the policy has been renewed or replaced by another policy conforming to the provisions of this Section, or that there is no necessity therefor under the terms hereof. In lieu of separate policies, the Borrower may maintain a single 18 policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Borrower shall deposit with the Trustee a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Project Facilities. The provisions of this Article relating to application of insurance proceeds are subject to the requirement of Section 13.14(h) of the Trust Indenture for the Series A Bonds providing that proceeds from any condemnation award or from the payment of a claim under any hazard insurance policy relating to the Project will not be payable to the Trustee, but will be payable in accordance with the FHA Loan Documents. Section 5.7 Damage or Destruction. The Borrower agrees to notify the Trustee immediately in the case of damage exceeding $50,000 in amount to, or destruction of, the Project or any portion thereof resulting from fire or other casualty. In the event that any such damage or destruction does not exceed $50,000, the Borrower shall forthwith repair, reconstruct and restore the Project to substantially the same or an improved condition or value as existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, the Borrower will apply the Net Proceeds of any insurance relating to such damage received by the Borrower to the payment or reimbursement of the costs thereof. Net Proceeds of any insurance relating to such damage up to $50,000 shall be paid directly to the Borrower. In the event the Project or any portion thereof is destroyed by fire or other casualty and the damage or destruction is estimated to exceed $50,000, then the Borrower shall within 120 days after such damage or destruction elect one of the following two options by written notice of such election to the Trustee: (1) Option A - Repair and Restoration. The Borrower may elect to repair, reconstruct and restore the damaged Project. In such event, the Borrower shall proceed forthwith to repair, reconstruct and restore the damaged or destroyed Project to substantially the same condition or value as existed prior to the event causing such damage or destruction and, to the extent necessary to accomplish such repair, reconstruction and restoration, the Borrower will apply the Net Proceeds of any insurance relating to such damage or destruction received by the Borrower from the Trustee to the payment or reimbursement of the costs thereof. So long as no Event of Default exists, any Net Proceeds of insurance relating to such damage or destruction received by the Trustee shall be released from time to time by the Trustee to the Borrower upon the receipt of- (a) A Certificate of the Borrower Representative specifying the expenditures made or to be made or the indebtedness incurred in connection with such repair, reconstruction and restoration and stating that such Net Proceeds, together with any other moneys legally available for such purposes, will be sufficient to complete such repair, reconstruction and restoration; and (b) The written approval of such certificate by an Independent Engineer. In the event the Borrower shall elect this Option A, the Borrower shall complete the repair, reconstruction and restoration of the Project, whether or not the Net Proceeds of insurance received by the Borrower for such purposes are sufficient to pay for the same. Net Proceeds not required for the repair, reconstruction and restoration of the Project shall be applied to the prepayment of the Bonds or used for such other purpose as the Trustee, based upon an opinion of Bond Counsel, determines will not cause interest on the Bonds to be included in gross income for purposes of federal income taxation. (2) Option B - Redemption of the Bonds. In the event that the Borrower shall determine that it is not practical or desirable to rebuild, repair or restore the Project, or, in case the Borrower is unable to 19 deliver the certificates or reports necessary under Option A of this Section, the Bonds shall be redeemed on the earliest date for which notice may be given for redemption in accordance with Section 3.1(1) of the Indenture. If the Net Proceeds of insurance, together with all amounts then held by the Trustee under the Indenture available to redeem or retire the Bonds, shall be insufficient to so redeem the Bonds (including the expenses of redemption), the Borrower shall pay such deficiency to the Trustee as a Basic Payment and the Net Proceeds of insurance, together with such Basic Payment and amounts held by the Trustee under the Indenture, shall be applied to such redemption of the Bonds in accordance with Section 8.2 hereof and Section 3.1 of the Indenture. If the Bonds have been fully paid and all obligations of the Borrower hereunder have been paid or provided for, all Net Proceeds shall be paid to the Borrower. Section 5.8 Condemnation. If the Project or any material portion thereof is condemned or taken for any public or quasi - public use and title thereto vests in the party condemning or taking the same, the Borrower hereby irrevocably assigns to the Trustee all its right, title and interest in and to any Net Proceeds of any award, compensation or damages (hereinafter referred to as an "award "), payable in connection with any such condemnation or taking. The Trustee shall cooperate fully with the Borrower in the handling and conduct of any prospective or pending condemnation proceedings with respect to the Project or any material part thereof. In the event of any condemnation or taking where title shall have been taken to all or substantially all of the Project or Project Premises, the Borrower shall, within 120 days after the date on which the Net Proceeds are finally determined, elect one of the two following options by written notice of such election to the Trustee. (1) Option A - Repairs and Improvements. The Borrower may elect to use the Net Proceeds of the award made in connection with such condemnation or taking for additions, repairs and improvements to the Project. In such event, so long as no Event of Default exists, the Borrower shall have the right to receive such Net Proceeds from the Trustee from time to time upon receipt by the Trustee of. (a) A Certificate of the Borrower Representative specifying the expenditures made or to be made or the indebtedness incurred in connection with such repairs and improvements and stating that such Net Proceeds, together with any of the moneys legally available for such purposes, will be sufficient to complete such repairs and improvements; and (b) If such Net Proceeds equal or exceed $500,000 in amount, the written approval of such Certificate by an Independent Engineer. The Borrower agrees to apply any such Net Proceeds so received solely to the purposes specified in such Certificate. Net Proceeds not required for the repairs and improvements shall be applied to the prepayment of the Bonds or in such other manner as the Trustee, based upon an opinion of Bond Counsel, determines will not cause interest on the Bonds to be included in gross income for purposes of federal income taxation. (2) Option B - Redemption of the Bonds. In the event that any material part of the Project is condemned, or such use or control thereof is taken by eminent domain, to the extent described above, or, in case the Borrower is unable to deliver the certificates or reports necessary under Option A of this Section, and, in the reasonable judgment of the Borrower the Project cannot be restored within six (6) months following completion of the proceedings by which such title is taken to a condition permitting conduct of the normal operations of the Borrower and at a cost not exceeding the Net Proceeds of the award in such condemnation proceedings the Bonds shall be redeemed on the earliest date for which notice may be given for redemption in accordance with Section 3.1(1) of the Indenture. If the Net 20 Proceeds of condemnation, together with the amount then held by the Trustee under the Indenture available to redeem the Bonds shall be insufficient to redeem the Bonds (including principal, accrued interest, and expenses of redemption), the Borrower shall pay such deficiency to the Trustee as a Basic Payment, and the Net Proceeds of condemnation, together with such Basic Payment and amounts held by the Trustee under the Indenture shall be applied to such redemption of the Bonds in accordance with Section 8.2 hereof and Section 3.1 of the Indenture. If the Bonds have been duly paid and all other obligations of the Borrower hereunder have been paid or provided for, any remaining Net Proceeds shall be paid to the Borrower. Section 5.9 Intentionally Omitted. Section 5.10 Hazardous Materials. The Borrower shall not use the Project in any manner so as to violate in any material respect any applicable law, rule, regulation or ordinance of any governmental body or in such manner as to vitiate insurance upon the Project. The Borrower shall not commit or permit any waste upon the Project which would materially decrease the value of the Project. The Borrower shall comply in all material respects with all regulations concerning the environment, health and safety relating to the generation, use, handling, production, disposal, discharge and storage of Hazardous Materials, as defined herein, in, on, under, or about the Project. The Borrower shall promptly take any and all necessary action in response to the presence, storage, use, disposal, transportation or discharge of any Hazardous Materials in, on, under or about the Project by the Borrower or Persons acting on behalf of or at the direction of the Borrower as all applicable laws, rules, regulations, or ordinances may require, provided, however, that the Borrower shall not, without the Trustee's prior written consent, which consent shall not be unreasonably withheld, take any remedial action in response to the presence of any Hazardous Materials in, on, under or about the Project, nor enter into any settlement agreement, consent decree, or other compromise in respect to any claims, proceedings, lawsuits or actions, completed or threatened pursuant to any Hazardous Materials laws or in connection with any third party, if such remedial action, settlement, consent or compromise might, in the Trustee's sole determination, impair the value of the Project; the Trustee's prior consent shall not, however, be necessary in the event that the presence of Hazardous Materials in, on, under, or about the Project either (1) poses an immediate threat to the health, safety, welfare or property right of any individual, or (2) is of such a nature that an immediate remedial response is necessary under applicable laws, rules, regulations, or ordinances, and it is not possible to obtain the Trustee's consent prior to undertaking such action. In the event the Borrower undertakes any remedial action with respect to any Hazardous Materials on, under or about the Project, the Borrower shall immediately notify the Trustee of any such remedial action, and shall conduct and complete such remedial action (1) in compliance with all applicable federal, state and local laws, regulations, rules, ordinances and policies, (2) to the reasonable satisfaction of the Trustee and (3) in accordance with the orders and directives of all federal, state and local governmental authorities. As used herein, the term "Hazardous Materials" shall mean (unless, and only to the extent that, being used in compliance with all applicable federal, state and local laws, regulations, rules, ordinances and policies): (1) oil, flammable substances, explosives, radioactive materials, hazardous wastes or substances, toxic wastes or substances or any other substances, materials or pollutants which (A) pose a hazard to the Project, to adjacent premises or to Persons on or about the Project or adjacent premises, (B) cause the Project to be in violation of any local, state or federal law, rule, regulation, ordinance, or policy, or (C) are defined as or included in the definition of "hazardous substances," "hazardous wastes," "hazardous materials," or "toxic substances" or words of similar import under any applicable local, state or federal law or under the regulations, policy guidelines or other publications adopted or promulgated pursuant thereto, including, but not limited to: (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. § 9601, et sue; (ii) the Hazardous Materials Transportation Act, as amended, 49 U.S.C. § 1601, et seq.; (iii) the Resource Conservation and Recovery Act, as amended, 42 U.S.C. § 6901, et sec..; (iv) the Clean Air Act, 42 U.S.C. § 7412; (v) the Toxic Substance Control Act, 15 U.S.C. § 2601 et sue; (vi) the Clean Water Act, 33 U.S.C. § 1317 and 1321(b)(2)A and 21 (vii) rules, regulations, ordinances and other publications adopted or promulgated pursuant to the aforesaid laws; (2) asbestos in any form which is or could become friable, (3) urea formaldehyde foam insulation, and (4) any other chemical, material or substance, exposure to which is prohibited, limited or regulated by any governmental authority or may or could pose a hazard to the health and safety or property interests of the Borrower or its employees, the occupants of the Project or the owners or occupants of property adjacent to or surrounding the Project. Section 5.11 Release of Real Property. The Borrower shall have the right, at any time and from time to time, to a release of any portion of the Project Premises from the Mortgage, but only as follows: (1) Project Premises not containing any permanent structure necessary for the total operating unity and efficiency of the Project may be released for the purpose of selling the same to a third person or to facilitate the construction or financing of additions to the Project Buildings or additional structures not related to the Project on such portion of the Project Premises, but only upon receipt by the Trustee of the following: (a) Certificate of a Borrower Representative setting forth in substance as follows: (i) The address and legal description of the portion of the Project to be released; (ii) The number of square feet of the property to be released, (iii) A certification that (a) the portion of the Project to be released is not needed for the operation of the Facility and is not necessary for the total operating unity and efficiency of the Facility, and the release will not cause a reduction in the Net Revenues of the Facility; (b) the release will not impair the structural integrity of the Facility or the usefulness of the Facility; and (c) the release will not inhibit adequate means of ingress to or egress from the Facility; (iv) No Default exists under this Loan Agreement, and (v) All conditions precedent herein provided for relating to such release have been complied with; (b) An ALTA survey prepared by a registered land surveyor describing and showing the Project Premises, after giving effect to such release; (c) An Opinion of Counsel stating that the certificates, opinions and other instruments which have been or are therewith delivered to and deposited with the Trustee conform to the requirements of this Loan Agreement and that, upon the basis of such application, the property may be released from the lien of the Mortgage, and that all conditions precedent herein provided for relating to such release have been complied with and (d) A Favorable Opinion of Bond Counsel. (2) The Borrower may at any time or times grant to itself or others easements, licenses, rights of way and other rights or privileges in the nature of easements with respect to the Project Premises, free from the lien of the Mortgage, or the Borrower may release existing easements, licenses, rights of way and other rights or privileges with or without consideration, and the Trustee will execute and deliver any 22 instrument necessary or appropriate to confirm and grant or release any such easement, license, right of way or privilege, provided, however, that prior to any such grant or release, there shall have been supplied to the Trustee a Certificate of the Borrower Representative and, if requested by the Trustee, of an Independent Engineer to the effect (i) that such grant or release is not detrimental to the proper operation of the Facility and (ii) such grant or release will not impair the operating unity or the efficiency of the Facility on such Project Premises or materially and adversely affect the character thereof. (The remainder of this page is intentionally left blank.) 23 ARTICLE 6 "M N� '� (The remainder of this page is intentionally left blank.) 24 ARTICLE 7 BORROWER'S COVENANTS Section 7.1 Covenant for the Benefit of the Trustee and Bondholders. The Borrower recognizes the authority of the Issuer to assign its interest in and pledge moneys receivable under this Agreement (other than certain payments required to be made to the Issuer under Sections 3.2, 4.4, 7.4, 9.5, 10.8, 10.11, 10.12, and 10.13) to the Trustee as security for the payment of the principal and purchase price of and interest and redemption premiums, if any, on the Bonds, and the payment of all fees and expenses of the Trustee; and hereby agrees to be bound by, and joins with the Issuer in the grant of, a security interest to the Trustee in any right and interest the Borrower may have in sums held in the Funds described in Article 5 of the Indenture, pursuant to the terms and conditions thereof, to secure payment of the Bonds. Each of the terms and provisions of this Agreement is a covenant for the use and benefit of the Trustee and Holders of the Bonds, so long as any thereof shall remain Outstanding; but upon payment in full of the Bonds in accordance with Article 7 of the Indenture and of all fees and charges of the Trustee and Paying Agent, all references in this Agreement to the Bonds, the Holders thereof and the Trustee shall be ineffective, and neither the Trustee nor the Holders of any of the Bonds shall thereafter have any rights hereunder, save and except those that shall have theretofore vested or that arise from provisions hereunder which survive termination of this Agreement. Section 7.2. Inspection and Access. The Borrower agrees that the Trustee and its duly authorized agents shall have the right at all reasonable times to examine and inspect, and for that purpose to enter upon, the Project Premises, and shall also have such right of access thereto as may be reasonably necessary to cause the Project to be properly maintained in accordance with Article 5 and the applicable provisions of the Mortgage in the event of failure by the Borrower to perform these obligations. Section 7.3 Annual Statement, Audit, Certificate of Compliance and Other Reports. (1) Commencing in 20_ for the fiscal year ending , 20 , the Borrower shall furnish to the Trustee and the Original Purchaser by no later than 120 days after the close of each fiscal year of the Borrower during the term hereof, a copy of annual audited financial statements of the Borrower for the preceding fiscal year, including a balance sheet and operating statements, audited by an Independent Accountant. The Borrower also agrees to furnish to the Trustee and the Original Purchaser of the Bonds by no later than 45 days after the close of each of its fiscal quarters commencing with the fiscal quarter ending , 20_, a copy of unaudited, internally - prepared financial statements of the Borrower presented in a manner similar to the annual audited financial statements, as well as physical and economic occupancy statistics for such quarter. (2) At the time the Borrower causes to be furnished the annual financial statements, the Borrower shall also furnish the Trustee a certificate executed by Borrower Representative, declaring that during the same fiscal year covered by the statements and continuing to the date of execution of the certificate, the Borrower has fully complied with the terms and conditions of this Agreement. (3) The Borrower will furnish the Issuer and the Trustee all reports required pursuant to law and regulations of the Act. (4) The Borrower will, and at the request of the Issuer or Trustee at the Borrower's expense, furnish to the Trustee and Issuer at such times and in such form as the Issuer and Trustee, may reasonably require (A) a copy of such other reports containing such information as is necessary to comply with any lawful reporting or continuing registration requirements imposed by any agency of the State under the 25 Act, the Minnesota Blue Sky Laws or any other applicable state law as it now exists or may hereafter be amended or by any agency of any other state in which the Bonds have been sold, or (B) such information as is necessary to comply with federal securities law. Section 7.4 Indemnity by Borrower. The Borrower releases the Issuer and the Trustee from, agrees that the Issuer and the Trustee shall not be liable for, and indemnifies, defends and holds the Issuer and the Trustee harmless from and against, all liabilities, claims, costs and expenses and attorneys' fees imposed upon, incurred or asserted against the Issuer or the Trustee on account o£ (i) any loss or damage to property or injury to or death of or loss by any person that may be occasioned by any cause whatsoever pertaining to the acquisition, financing, construction, occupation, possession, management, equipping, furnishing, maintenance, operation and use of the Project or from any work or thing done in or about the Project site, or any sidewalks, passageways, driveways, curbs, vaults and vault space, streets or parking areas on the Project site or adjacent thereto; (ii) any breach or default on the part of the Borrower in the performance of any covenant or agreement of the Borrower under this Agreement, the Regulatory Agreement, the Note or any related document, or arising from any act or failure to act by the Borrower, or any of its agents, contractors, servants, employees or licensees; (iii) the Borrower's failure to comply with any requirement of this Agreement including the covenant in Section 5.4 hereof; (iv) any action taken or omitted to be taken by the Issuer or the Trustee under this Loan Agreement, the Indenture or the Regulatory Agreement; (v) the issuance of the Bonds; and (vi) any claim, action or proceeding brought with respect to any matter set forth in clause (i), (ii), (iii), (iv) or (v) above, provided, however, that the indemnification provided in this Section shall not apply to any matter arising or resulting from the gross negligence or willful misconduct of the party proposed to be indemnified hereunder. The Borrower agrees to indemnify the Trustee for and to hold it harmless against all liabilities, claims, costs and expenses incurred without negligence or willful misconduct on the part of the Trustee, on account of any action taken or omitted to be taken by the Trustee in accordance with the terms of this Agreement, the Bonds, the Regulatory Agreement, the Note or the Indenture or any action taken at the request of or with the consent of the Borrower, including the costs and expenses of the Trustee in defending itself against any such claim, action or proceeding brought in connection with the exercise or performance of any of its powers or duties under this Agreement, the Bonds, the Indenture, the Regulatory Agreement or the Note. In case any action or proceeding is brought against the Issuer or the Trustee in respect of which indemnity may be sought hereunder, the party seeking indemnity promptly shall give notice of that action or proceeding to the Borrower, and the Borrower upon receipt of that notice shall have the obligation and the right to assume the defense of the action or proceeding, provided that failure of a party to give that notice shall not relieve the Borrower from any of its obligations under this Section unless that failure prejudices the defense of the action or proceeding by the Borrower. The indemnified party shall have the right to employ separate counsel in any such action or proceedings and to participate in the defense thereof, but, unless such separate counsel is employed with the approval and consent of the Borrower, or because the indemnified party has been advised by counsel that there may be a conflict of interest between the Borrower and the indemnified party, the Borrower shall not be required to pay the fees and expenses of such separate counsel. The Borrower shall not be liable for any settlement made without its consent, which consent shall not be unreasonably withheld, conditioned or delayed. The indemnification set forth above is intended to and shall include the indemnification of all affected officials, directors, officers, agents and employees of the Issuer and the Trustee, respectively. That indemnification is intended to and shall be enforceable by the Issuer and the Trustee, respectively, to the full extent permitted by law. The provisions of this Section 7.4 shall survive the payment and discharge of the Bonds. 26 Section 7.5 Status of Borrower. Throughout the Term of this Agreement, the Borrower will maintain its existence as a limited partnership organized under the laws of the State of Minnesota and a Single Purpose Entity and will not wind up or otherwise dispose of all or substantially all of its assets, provided that subject to the sale restrictions in Section 5.2 and the assignment and transfer conditions in Section 8.1, the Borrower may, sell or otherwise transfer to another Person all or substantially all of its assets in its entirety and thereafter wind up if the transferee Person assumes all of the obligations of the Borrower under this Agreement, the Security Documents, the Mortgage and the Regulatory Agreement by written instrument delivered to the Issuer and the Trustee. Every such transferee shall be bound by all of the covenants and agreements of the Borrower herein with respect to any further sale or transfer. Upon any change in the identity of its general partner by way of substitution, sale or otherwise of the Borrower, the Trustee shall be promptly informed and, if requested, each and every general partner of the Borrower as newly constituted shall deliver to the Trustee for the benefit of the Issuer and Bondholders an instrument in form satisfactory to the Trustee affirming the joint and several liability of all then existing general partners for the obligations of the Borrower hereunder for which the general partners are liable (subject, in all instances, to Section 9.13 of this Agreement). The Issuer and Borrower agree that, upon any change in the status of the Borrower, including a change in the identity of its general partner, so long as the requirements, restrictions and conditions of Section 5.2, Section 8. 1, and the Regulatory Agreement with respect to such change have been satisfied as provided therein, the general partner involved shall be discharged from liability hereunder. The Trustee by execution of the Indenture shall be deemed to have agreed to execute such documents as may be necessary or desirable to indicate such discharge upon receipt of evidence satisfactory to said parties that the requirements for this Section, Section 5.2, Section 8.1 and the Regulatory Agreement have been satisfied, and provided that no Event of Default under this Agreement shall have happened and be continuing on the date of the discharge. The Borrower shall not effect such transfer or change if the result thereof would be to violate any sale restrictions set forth in Section 5.2 of this Agreement, or to subject the interest payable on the Bonds (in the hands of any Person who is not a "substantial user" of the Project or a "related person ") to federal income taxes under Section 103 of the Code. Notwithstanding anything to the contrary contained herein or in any other loan document (1) the assignment of Special Limited Partner or Investor Limited Partner interests in the Borrower to an entity controlled, directly or indirectly, by or (2) the removal of the general partner pursuant to the terms of the Partnership Agreement, shall not be deemed an Event of Default hereunder or under any other loan document and shall not require the consent of the Issuer or the Trustee. Section 7.6 Filing of Financing Statements. The Borrower agrees that it will, at its sole expense, file or cause to be filed any financing statements and continuation statements required or requested by the Trustee to perfect the security interest granted to the Trustee under the Security Documents and under the Indenture in this Agreement and the payments to be made hereunder. Section 7.7 Assurance of Tax Exemption. In order to assure that the interest on the Bonds shall at all times be excluded from gross income for the purposes of federal income taxation, the Borrower represents and covenants with the Issuer, Trustee and all Holders of the Bonds as follows: (1) the Borrower will fulfill all continuing conditions specified in Section 142 of the Code and Regulation 1.103 -8(b) promulgated thereunder, to qualify the Bonds as residential rental property bonds thereunder, and the Borrower shall fulfill its obligations under the Regulatory Agreement; 27 (2) the Borrower will not use (or permit to be used) the Project or use or invest (or permit to be used or invested) the proceeds of the Bonds or any other sums treated as "bond proceeds" under Section 148 of the Code and applicable federal income tax regulations, including "investment proceeds ", "invested sinking funds" and "replacement proceeds ", in such a manner as to cause the Bonds to be classified "arbitrage bonds" under Section 148 of the Code or "federally guaranteed obligations" under Section 149(b) of the Code; (3) at least 95% of Net Bond Proceeds will be used to finance costs properly chargeable to the capital account of a qualified residential rental project within the meaning of Section 142(d) and functionally related and subordinate property thereto; (4) the Borrower has not permitted and will not permit any obligation or obligations other than the Series A Bonds to be issued within the meaning of Section 103(b) of the Code so as to cause such obligations to become part of the same "issue of obligations" as the Bonds; (5) no portion of the proceeds of the Bonds is to be used to provide any airplanes, skybox, or other private luxury box, health club facility, facility primarily used for gambling or liquor store; (6) no portion of the proceeds of the Bonds will be used to acquire (a) property to be leased to the government of the United States of America or to any department, agency or instrumentality of the government of the United States of America, (b) any property not part of the residential rental housing portion of the Project, or (c) any private or commercial golf course, country club, massage parlor, tennis club, skating facility (including roller skating, skateboard and ice - skating), racquet sports facility (including any handball or racquetball court), hot tub facility, suntan facility or racetrack; (7) no portion of the proceeds of the Bonds (including investment earnings thereon) shall be used (directly or indirectly) for the acquisition of land (or an interest therein) to be used for farming purposes, and less than 25% of the Bond proceeds (including investment earnings thereon) shall be used (directly or indirectly) for the acquisition of land to be used for purposes other than farming purposes; (8) the Borrower understands that the Code imposes a penalty for failure to file with the Secretary of the Treasury an annual certification of compliance with low income occupancy requirements, and if the requirements for a "qualified residential rental project" are not met, does not allow deduction for interest paid on the Bonds which accrues during the period beginning on the first day of the taxable year in which the Project ceases to meet such requirements and ending on the date the Project again meets such requirements; (9) the average maturity of the Bonds and the Series A Bonds years) does not and will not exceed 120% of the average reasonably expected remaining economic life of the Project years) within the meaning of Section 147(b) of the Code; (10) the Borrower shall provide the Issuer at Bond Closing with all information required to satisfy the informational requirements set forth in Section 149(e) of the Code including the information necessary to complete IRS Form 8038; (11) no money in the Bond Fund, Capitalized Interest Fund or Project Fund shall be invested in investments which cause the Bonds to be federally guaranteed within the meaning of Section 149(b) of the Code. If at any time the moneys in such funds exceed, within the meaning of Section 149(b), (i) amounts invested for an initial temporary period until the moneys are needed for the purpose for which the Bonds were issued, (ii) investments of a bona fide debt service fund, and (iii) investments of a reserve 28 which meet the requirement of Section 148(c) and (d) of the Code, such excess moneys shall be invested in only those Permitted Investments or Government Obligations, as otherwise appropriate, which are (a) obligations issued by the United States Treasury, (b) other investments permitted under regulations, or (c) obligations which are (a) not issued by, or guaranteed by, or insured by, the United States or any agency or instrumentality thereof or (b) not federally insured deposits or accounts, all within the meaning of Section 149(b)(3)(B) of the Code; (12) the Borrower shall expend at least $ in rehabilitating the Project (15% of the acquisition cost less land value as determined by an independent appraisal) on or before 1, 20_; (13) the Borrower on behalf of the Issuer shall pay to the United States, as a rebate, an amount equal to the sum of (a) the excess of (i) the aggregate amount earned on all nonpurpose investments (other than investments attributable to an excess described in this clause), over (ii) the amount which would have been earned if all nonpurpose investments were invested at a rate equal to the yield on the Bonds, plus (b) any income attributable to the excess described in clause (a), at the times and in the amounts required by Section 148(f) of the Code, all within the meaning of Section 148(f) of the Code. The Borrower and the Trustee shall maintain detailed records of the interest rate borne by the Bonds and the investments of the Project Fund, Capitalized Interest Fund and Bond Fund (and any other fund created under the Indenture) and earnings thereon. The Borrower shall engage a qualified firm selected by the Borrower (the "Rebate Consultant ") to calculate the amount of any rebate required to be made to the United States at times and in installments which satisfy Section 148(f) of the Code and the Regulations, at least once every 5 years and within 60 days after the day on which the last of the Bonds is redeemed, and the Trustee shall be immediately furnished with such calculations. If the Trustee is not furnished with such calculations, the Trustee may undertake to have such calculations made by the Rebate Consultant at the expense of the Borrower. Such calculations shall be retained until 6 years after the retirement of the last Bond. The rebate shall be calculated as provided in Section 148(f) of the Code and Sections 1.148 -0 through 1.148 -9 of the Treasury Regulations, including taking into account the gain or loss on the disposition of nonpurpose investments but not gross earnings of up to $100,000 on the portion, if any, of the Bond Fund constituting a bona fide debt service fund. The Borrower shall acquire, and shall cause the Trustee to acquire all nonpurpose investments at their fair market value in arm's length transactions; (14) the Borrower will not permit more than 2.00% of the proceeds of the Bonds and the Series A Bonds ($ to be expended (or to be used to reimburse any person for an expenditure) to pay Issuance Expenses as provided by Section 147(g) of the Code; (15) In order to qualify the Bonds and this Agreement under the "program investment" provisions of Section 1.148- 2(d)(2)(iii) of the Treasury Regulations, the Borrower (and any "related person" thereto) will take no action the effect of which would be to disqualify this Agreement as a "program investment" as defined in Section 1.148 -1(b) of the Treasury Regulations, including but not limited to entering into any arrangement, formal or informal, for the Borrower to purchase bonds or notes of the Issuer in an amount related to the amount of the Bonds; and (16) the Borrower will not otherwise use Bond proceeds, including expenses, earnings thereon, or take, or permit or cause to be taken, any action that would adversely affect the exclusion from gross income of the interest on the Bonds, nor otherwise omit to take or cause to be taken any action necessary to maintain such exclusion from gross income; and, if it should take or permit, or omit to take or cause to be taken, as appropriate, any such action, the Borrower shall take all lawful actions necessary to rescind or correct such actions or omissions promptly upon having knowledge thereof. Section 7.8 Determination of Taxability. 29 (1) Promptly after the occurrence of a Determination of Taxability, the Borrower shall give written notice to the Issuer and Trustee of the Determination of Taxability. (2) Neither the Borrower nor any Holder shall be required to contest or appeal any notice of deficiency, ruling, decision or legislative enactment which may give rise to a Determination of Taxability; and the expenses of any such contest or appeal shall be paid by the party initiating the contest or appeal. Section 7.9 Subordination of Management Fees. If, and during any period that, an affiliate of the Borrower or the Sponsor is the manager of the Project, any management fees payable by the Borrower with respect to the Project will be wholly subordinate and junior in right of payment to all sums payable under this Agreement. Without limiting the foregoing, during the continuance of an Event of Default hereunder, no payment of such management fees shall be made by the Borrower. Further, the Borrower will not pay any such management fees if such payment will cause an Event of Default hereunder. (The remainder of this page is intentionally left blank.) 30 ARTICLE 8 BORROWER'S OPTIONS Section 8.1 Assignment and Transfer. The Borrower may assign its rights and obligations under this Agreement and, as an incident thereto, transfer its interest in the Project without prior consent of the Issuer or the Trustee, but subject to the provisions of Sections 5.2 and 7.5 hereof. Section 8.2 Prepayment. (1) The Borrower shall have the option to direct the Trustee to call for redemption and prepayment of the Outstanding Bonds in whole or in part as provided in Section 3.1 of the Indenture. The Bonds to be redeemed shall be redeemed at a price equal to their principal amount plus accrued interest set forth in Section 3.1 of the Indenture. In the event the Bonds are called for redemption in whole or in part, the Borrower shall make a Basic Payment as provided in Section 4.2 hereof on such Redemption Date. (2) The Borrower shall prepay the Loan in whole or in part to the extent of the mandatory redemption of the Bonds under Article III of the Indenture and will at any time transmit directly to the Trustee, for deposit in the Bond Fund, funds in the required amount in addition to any other amounts required to be paid at that time pursuant to this Loan Agreement. The principal amount of the Loan to be prepaid from moneys remaining on deposit in the Project Fund following the Completion Date will be determined in accordance with Section 3.1(2) of the Indenture. [The principal amount of the Loan to be prepaid upon the Borrower's receipt of the proceeds of the Assigned Capital Contributions, the HOME Loan Proceeds, the GP Capital Contributions, and the Sponsor Loan Proceeds will be determined in accordance with Section 3.1(3) of the Indenture.] (3) If, after the Borrower exercises its option to redeem all Bonds, no Bonds remain Outstanding, the Indenture is discharged, and the Borrower has satisfied all of its obligations hereunder, the Trustee and the Issuer shall execute and deliver to the Borrower such release and other instruments as the Borrower reasonably determines are necessary to terminate this Agreement. All further obligations of the Borrower hereunder, except as set forth in Section 10. 10, shall thereupon terminate. Section 8.3 Direction of Investments. Except during the continuance of an Event of Default, the Borrower shall have the right during the Term of this Agreement to direct the Trustee to invest or reinvest all money held for the credit of Funds established by Article 5 of the Indenture in such securities as are authorized by law for such funds, subject, however, to the further conditions of Article 6 of the Indenture and Section 7.7 hereof. 31 ARTICLE 9 EVENTS OF DEFAULT AND REMEDIES Section 9.1 Events of Default. Any one or more of the following events is an Event of Default under this Agreement, and the term "Event of Default," wherever used herein, means any one of the following events, whatever the reason for such default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body: (1) if the Borrower shall fail to pay any Basic Payments on the date due under this Agreement, and such failure continues for five days after mailing of a notice to it by the Trustee; (2) if the Borrower shall fail to pay any Additional Charges on or before the date that the payment is due, and shall continue to be in arrears for 30 days after mailing of a notice to it by the Issuer or the Trustee that said Additional Charges have not been received on the due date; (3) if the Borrower shall fail to observe and perform or shall breach any other covenant, condition or agreement on its part under this Agreement for a period of 60 days after mailing of a notice to it by the Issuer or the Trustee, stating that it is a "Notice of Default" hereunder and specifying such default or breach and requesting that it be remedied; (4) if the Borrower shall be dissolved or liquidated (other than when a new entity assumes the obligations of the Borrower under the conditions permitting such action contained in Section 7.5) or the Partnership Agreement shall expire or be annulled; (5) if any representation or warranty made by the Borrower herein, or by a general partner or Representative of the Borrower in any document or certificate furnished the Trustee or the Issuer or the Underwriter in connection herewith or therewith or pursuant hereto or thereto, shall prove at any time to be, in any material respect, incorrect or misleading as of the date made; or (6) if an event of default occurs and is continuing under the Indenture or any Related Document, subject to applicable notice and cure periods. The Investor Limited Partner or Special Limited Partner in the Borrower shall have the right, but not the obligation, to cure Events of Default on behalf of the Borrower. Section 9.2 Remedies. (1) Whenever any Event of Default shall have happened and be subsisting the Trustee may, by written notice to the Borrower, declare all the Basic Payments payable for the remainder of the Term of this Agreement (an amount equal to that necessary to pay in full all Outstanding Bonds and the interest thereon assuming acceleration of the Bonds under the Indenture and to pay all other indebtedness thereunder) to be immediately due and payable whereupon the same shall become immediately due and payable by the Borrower. (2) Upon the occurrence of an Event of Default, the Trustee may also take whatever action at law or in equity may appear necessary or appropriate to collect all sums then due and thereafter to become due, or to enforce performance and observance of any obligation, agreement, covenant, representation or 32 warranty of the Borrower, under this Agreement, or any Collateral Documents; or to otherwise compensate the Issuer, Trustee or Bondholders for any damages on account of such Event of Default. (3) The Issuer (without the prior written consent of the Trustee if the Trustee is not enforcing the Issuer's right in a manner to protect the Issuer or is otherwise taking action that brings adverse consequences to the Issuer) may take whatever action at law or in equity may appear necessary or appropriate to enforce its rights of indemnification under Section 7.4 and to collect all sums then due and thereafter to become due to the Issuer under Sections 3.2, 4.4, 7.4, 9.5, 10.11, 10.12, and 10.13 of this Agreement. Notwithstanding the foregoing, the Issuer is not precluded from exercising any of its rights reserved to it as set forth in this Section, even if the Trustee is exercising the rights of the Issuer hereunder. Section 9.3 Disposition of Funds. Any amounts collected pursuant to action taken under Section 9.2 (other than sums collected for the Issuer on account of its rights to indemnification and certain direct payments to be made to the Issuer under Sections 3.2, 4.4, 7.4, 9.5, 10.8, 10.11, 10.12, and 10.13 which sums shall be paid directly to the Issuer) shall be applied in accordance with the provisions of the Indenture. Section 9.4 Nonexclusive Remedies. No remedy herein conferred upon or reserved to the Issuer or Trustee is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any Event of Default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Issuer (or Trustee) to exercise any remedy reserved to it in this Article, it shall not be necessary to give any notice, other than such notice as may be herein expressly required or as may be required by law. Section 9.5 Attorneys' Fees and Expenses. If an Event of Default shall exist under this Agreement and the Issuer or Trustee should employ attorneys or incur other expenses for the collection of any amounts due hereunder, or for the enforcement of performance of any obligation or agreement on the part of the Borrower, the Borrower will upon demand pay to the Issuer or Trustee the reasonable fees of such attorneys and such other expenses so incurred. Section 9.6 Effect of Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder. Section 9.7 Waiver of Stay or Extension. The Borrower covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any appraisement, valuation, stay, or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants in, or the performance of, this Agreement; and the Borrower (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Issuer or Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. Section 9.8 Issuer May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Borrower or the property of the Borrower, the Trustee, or the Issuer 33 with the prior consent of the Trustee, shall be entitled and empowered, by intervention in such proceeding or otherwise, (1) to file and prove a claim and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Issuer and Trustee (for themselves and on behalf of Bondholders) (including any claim for the reasonable compensation, expenses, disbursements and advances of the Issuer and Trustee, their agents and counsel) allowed in such judicial proceeding, and (2) to collect and receive any moneys or other property payable or deliverable on any such claims, and to distribute the same. Section 9.9 Restoration of Positions. If the Issuer or Trustee have instituted any proceeding to enforce any right or remedy under this Agreement, and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Issuer or Trustee, then and in every such case the Borrower, Trustee and Issuer shall, subject to any determination in the proceeding, be restored to the positions they held prior to commencement of such proceedings, and thereafter all rights and remedies of the Issuer shall continue as though no such proceeding had been instituted. Section 9.10 Suits to Protect the Project. If the Borrower shall fail to do so after thirty (30) days prior written notice from the Issuer or Trustee, the Issuer shall have power to institute and to maintain such proceedings as it may deem expedient to prevent any impairment of the Project or any portion thereof, by any acts which may be unlawful or in violation of this Agreement, and such suits and proceedings as the Issuer may deem expedient to protect its interests in the Project or any portion thereof, including power to institute and maintain proceedings to restrain the enforcement of or compliance with any governmental enactment, rule or order that may be unconstitutional or otherwise invalid, if the enforcement of, or compliance with, such enactment, rule or order would impair or adversely affect the Project or be prejudicial to the interests of the Bondholders. Section 9.11 Performance by Third Parties. The Issuer may permit third parties to perform any and all acts or take such action as may be necessary for and on behalf of the Borrower to cure any Event of Default hereunder. The acceptance by the Issuer or the Trustee of any such performance by third parties shall not in any way diminish or absolve the Borrower of primary liability hereunder. Section 9.12 Exercise of the Issuer's Remedies by Trustee. Whenever any Event of Default shall have happened and be subsisting the Trustee may, but except as otherwise provided in the Indenture shall not be obliged to, exercise any or all of the rights of the Issuer under this Article 9, without notice to the Issuer. Section 9.13 Limited Recourse. Notwithstanding any provision or obligation to the contrary set forth in this Agreement, (1) the liability of the Borrower and any partner, trustee, director, officer, employee, or agent thereof (collectively, "Borrower Parties ") under this Agreement, the Security Documents or the Mortgage shall be limited to the property subject to the Mortgage, the Security Documents or to such other security as may from time to time be given or have been given for payment of the Borrower's obligations under this Agreement and Bonds, and any judgment rendered against the Borrower Parties under this Agreement, the Security Documents or the Mortgage and the Bonds shall be limited to the property subject to the Mortgage, the Security Documents and any other security so given for satisfaction thereof; and (2) no deficiency or other personal judgment nor any order or decree of specific performance shall be sought or rendered against the Borrower Parties, their successors, transferees or assigns, in any action or proceeding arising out of the Mortgage, the Security Documents, this Agreement, the Bonds, or any judgment, order or decree rendered pursuant to any such action or proceeding, provided, however, that nothing in this Agreement, the Security Documents, the Mortgage or 34 the Bonds shall limit the Issuer's or Trustee's ability to exercise any right or remedy that it may have with respect to any property pledged or granted to the Issuer or the Trustee, or both of them, or to exercise any right against the Borrower Parties or any other person or entity on account of any damage caused by fraud or intentional misrepresentation by the Borrower or any intentional damage of the property subject to the Mortgage. Furthermore, the Borrower shall be fully liable for the misapplication of (1) proceeds paid prior to any foreclosure under any and all insurance policies, under which the Trustee and/or the Issuer is named as insured, by reason of damage, loss or destruction to any portion of the property subject to the Mortgage, to the full extent of such misapplied proceeds and awards, (2) proceeds or awards resulting from the condemnation, or other taking in lieu of condemnation, prior to any foreclosure of the property subject to the Mortgage, to the full extent of such misapplied proceeds and awards (3) rents, issues, profits and revenues received or applicable to a period subsequent to the occurrence of a default under this Agreement, the Mortgage, the Security Documents and the Bonds but prior to foreclosure, and (4) proceeds from the sale of all or any part of the property subject to the Mortgage, the Security Documents and any other proceeds that, under the terms hereof, should have been paid to the Issuer or the Trustee. Furthermore, the Borrower shall be fully liable for the breach of the Borrower's covenants contained in Sections 3.2, 4.4(1), (2) and (3), 7.4, 9.5, 10.8, 10.11, 10.12, and 10.13 of this Agreement, provided, however, that in no event shall the Borrower or any Borrower Parties be personally liable for payment of the principal of, premium, if any, or interest on the Bonds. The limit on the Borrower's liability set forth in this paragraph shall not, however, be construed, and is not intended in any way, to constitute a release, in whole or in part, of the Borrower's obligations under this Agreement or a release, in whole or in part, or an impairment of the lien and security interest of the Mortgage, the Security Documents, this Agreement and the Bonds upon the properties described therein, or to preclude the Issuer or the Trustee from foreclosing the Mortgage in case of any default or enforcing any other right of the Issuer or the Trustee, or to alter, limit or affect the liability of any person or party who may now or hereafter or prior hereto guarantee, or pledge, grant or assign its assets or collateral as security for, the obligations of the Borrower under the Mortgage, the Security Documents, this Agreement and the Bonds. (The remainder of this page is intentionally left blank.) 35 ARTICLE 10 GENERAL PROVISIONS Section 10.1 Amounts Remaining in Funds. Except during the continuance of an Event of Default, any amounts remaining in the funds created under Article 5 of the Indenture upon expiration or earlier termination of this Agreement, as provided herein, and after adequate provision has been made for payment in full of the Bonds, in accordance with Article 7 of the Indenture, any Additional Charges payable to the Trustee and Issuer, including Paying Agent's fees and expenses, and all other amounts required to be paid under this Agreement and the Indenture, shall forthwith be paid to the Borrower. Section 10.2 Notices. All notices, certificates or other communications hereunder shall be in writing (except as otherwise expressly provided herein) and shall be sufficiently given and shall be deemed given when mailed by first class mail, postage prepaid, with proper address as indicated below. The Issuer, the Borrower, and Trustee may, by written notice given by each of them to the others, designate any address or addresses to which notices, certificates or other communications to them shall be sent when required as contemplated by this Agreement. Until otherwise provided by the respective parties, all notices, certificates and communications to each of them shall be addressed as follows: To the Issuer: City of Edina 4801 West 50t` Street Edina, MN 55424 Attn: Finance Director To the Borrower: Attn: With a copy to: Winthrop & Weinstine P.A. 222 South Sixth Street, Suite 3500 Minneapolis, MN 55402 -4629 Attn: Norman Jones, Esq. And: Attn: To the Trustee: Attn: Section 10.3 Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon the Issuer and Borrower and their respective successors and assigns. 36 Section 10.4 Severability. In the event any provisions of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 10.5 Amendments, Changes, and Modifications. Except as otherwise provided in this Agreement or in the Indenture, subsequent to the issuance of the Bonds and before the lien of the Indenture is satisfied and discharged in accordance with its terms, this Agreement may not be effectively amended, changed, modified, altered or terminated without the written consent of the Trustee. Section 10.6 Execution Counterparts. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 10.7 Required Approvals. Consents and approvals required by this Agreement to be obtained from the Borrower, the Issuer or the Trustee shall be in writing and shall not be unreasonably withheld or delayed. Section 10.8 Limitation on Issuer's Liability. No agreements or provisions contained in this Agreement nor any agreement, covenant or undertaking by the Issuer contained in any document executed by the Issuer in connection with the Project shall give rise to any pecuniary liability of the Issuer or a charge against their general credit or taxing powers, or shall obligate the Issuer financially in any way except with respect to the Project and the application of revenues therefrom and the proceeds of the Bonds. No failure of the Issuer to comply with any term, condition, covenant or agreement herein shall subject the Issuer to liability for any claim for damages, costs or other financial or pecuniary charge except to the extent that the same can be paid or recovered from the Project or revenues therefrom or from proceeds of the Bonds; and no execution of any claim, demand, cause of action or judgment shall be levied upon or collected from the general credit, general funds or taxing powers of the Issuer. Nothing herein shall preclude a proper party in interest from seeking and obtaining specific performance against the Issuer for any failure to comply with any term, condition, covenant or agreement herein, provided that no costs, expenses or other monetary relief shall be recoverable from the Issuer except as may be payable from the Project or its revenues. Section 10.9 Representations of Borrower. All representations made in this Agreement by the Borrower are based on the best of the Borrower's knowledge of the facts and law, and no such representations are made in reliance upon any representations made or legal advice given by the Issuer, its Bond Counsel, or any of its agents, officers or employees. Section 10.10 Termination. At any time when no Bonds remain Outstanding and arrangements satisfactory to the Issuer and Trustee have been made for the discharge of all liabilities under this Agreement, this Agreement shall terminate. All obligations of the Borrower under Sections 7.4, 7.7, 7.8, 10.11 and 10.12 shall survive termination of this Agreement. Section 10.11 Administrative Fees, Attorneys' Fees and Costs. The Borrower shall reimburse the Issuer, upon demand, for all costs and expenses, including without limitation attorneys' fees, paid or incurred by the Issuer in connection with (i) the discussion, negotiation, preparation, approval, execution and delivery of the Bonds, the Indenture, this Agreement, and the documents and instruments related hereto or thereto; (ii) any amendments or modifications to any of the foregoing documents, instruments or agreements and the discussion, negotiation, preparation, approval, execution and delivery of any and all documents necessary or desirable to effect such amendments or modifications; (iii) the servicing and administration of the Loan during the Term of this Agreement or thereafter; and (iv) the enforcement by the Issuer during the term hereof or thereafter of any of the rights or remedies of the Issuer hereunder or 37 under the foregoing documents, or any document, instrument or agreement related hereto or thereto, including, without limitation, costs and expenses of collection in the Event of Default, whether or not suit is filed with respect thereto. Section 10.12 Release. The Borrower hereby acknowledges and agrees that the Issuer, its officers, employees and agents shall not be liable to the Borrower, and hereby releases and discharges the Issuer, its officers, employees and agents from any liability, for any and all losses, costs, expenses (including attorneys' fees), damages, judgments, claims and causes of action, paid, incurred or sustained by the Borrower as a result of or relating to any action, or failure or refusal to act, on the part of the Trustee or any other party with respect to the Bonds, the Indenture, this Agreement, or the documents and transactions related hereto or thereto or contemplated hereby or thereby, including, without limitation, the exercise by the Trustee or any third party (other than the Trustee) of any of its rights or remedies pursuant to any of such documents. Section 10.13 Audit Expenses. The Borrower agrees to pay any costs incurred by the Issuer, including fees of Issuer's counsel, as a result of the Issuer's compliance with an audit or inquiry of any kind, random or otherwise, by the Internal Revenue Service, the Minnesota Department of Revenue, the Minnesota Office of the State Auditor, or any other governmental agency with respect to the Bonds, the Series A Bonds, or the Project. (The remainder of this page is intentionally left blank.) 38 IN WITNESS WHEREOF, the Issuer and the Borrower have caused this Loan Agreement to be executed by their duly authorized officers. CITY OF EDINA, MINNESOTA By Its Mayor By Its City Administrator Loan Agreement between the the City of Edina, Minnesota and Yorktown Continental, LP. 39 YORKTOWN CONTINENTAL, LP, a Minnesota limited partnership By: , a Minnesota limited liability company Its: General Partner By: Its: Vice President Loan Agreement between the City of Edina, Minnesota and Yorktown Continental, LP 40 EXHIBIT A Legal Description Im Draft 6/20/14 COMBINATION MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND RENTS AND FIXTURE FINANCING STATEMENT MADE BY YORKTOWN CONTINENTAL, LP, as Mortgagor IN FAVOR OF THE CITY OF EDINA, MINNESOTA, as Mortgagee Dated as of July 1, 2014 Relating to: CITY OF EDINA, MINNESOTA MULTIFAMILY HOUSING REVENUE BONDS ( YORKTOWN CONTINENTAL, LP PROJECT) SERIES 2014B The maximum principal indebtedness secured by this Combination Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement (the "Mortgage ") is $ and the debt secured by this Mortgage matures no later than 1, 20_. This Mortgage contains after - acquired property provisions and constitutes a fixture financing statement under Minnesota Statutes, Section 336.9 -502. This Mortgage Is Exempt from Registry Tax Pursuant to Minnesota Statutes, Section 287.04(f). This instrument drafted by: Dorsey & Whitney LLP (J. Hanson) 50 South Sixth Street Minneapolis, Minnesota 55402 COMBINATION MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND RENTS AND FIXTURE FINANCING STATEMENT This COMBINATION MORTGAGE, SECURITY AGREEMENT, ASSIGNMENT OF LEASES AND RENTS AND FIXTURE FINANCING STATEMENT dated as of July 1, 2014 (the "Mortgage" or "Assignment "), is executed and delivered by YORKTOWN CONTINENTAL, LP, a Minnesota limited partnership (the "Mortgagor" or the "Assignor ") to the CITY OF EDINA, MINNESOTA, a political subdivision of the State of Minnesota (the "Issuer," and together with its successors and assigns as mortgagee hereunder, the "Mortgagee" or the "Assignee "). WHEREAS, the Mortgagor and the Mortgagee are entering into a Loan Agreement, dated as of July 1, 2014 (the "Loan Agreement "), pursuant to which the Mortgagee will lend to the Mortgagor the gross proceeds of its Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014B (the "Bonds "), in the original aggregate principal amount of $ ; and WHEREAS, the Mortgagee and [U.S. Bank National Association, as trustee] (the "Trustee ") are entering into an Indenture of Trust, dated as of July 1, 2014 (the "Indenture "), pursuant to which the Mortgagee will assign to the Trustee, as security for the owners of the Bonds, the Basic Payments and covenants and all other rights and interests of the Mortgagee in the Loan Agreement (except for the rights of the Mortgagee thereunder relating to expenses, indemnity and advances of the Mortgagee); and WHEREAS, the Trustee is authorized by the Indenture to receive as part of the Trust Estate any and all other property conveyed, mortgaged, assigned or transferred, or in which a security interest is granted, by (among others) the Mortgagor, and to hold and apply the Trust Estate pursuant to the provisions of the Indenture; and WHEREAS, the Mortgagor has agreed to mortgage and grant a security interest in the Mortgaged Property, as defined herein and as further described in Exhibit A hereto, to secure its obligations under the Loan Agreement, including its obligation to make Basic Payments at times and in amounts sufficient to pay when due the principal of, premium (if any) on and interest on the Bonds. NOW, THEREFORE, in consideration of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged; in consideration of the purchase and acceptance of the Bonds by the persons who, from time to time, may become the owners thereof; and to secure the due and punctual payment of any and all liabilities of the Mortgagor under the Loan Agreement and all covenants and agreements of the Mortgagor therein, including (without limitation) all Basic Payments payable thereunder in respect of the Bonds, and the payment of all fees and expenses and advances of the Issuer and the Trustee under the Loan Agreement, the Indenture and this Mortgage, the Mortgagor does hereby grant, bargain, sell, convey, and warrant and assign to the Mortgagee, its permitted successors and assigns a lien on and security interest in, and does hereby mortgage and pledge unto the Mortgagee, its successors and assigns, forever, with power of sale, the following: I. All of its right, title and interest in and to the tracts, parcels and interests in land described in Exhibit A hereto (the "Land ") and the buildings, structures and other improvements now standing or at any time hereafter constructed or placed upon the Land (the "Buildings "), including but not limited to (i) all building materials, supplies and equipment now or hereafter located on the Land and suitable or intended to be incorporated in any building, structure, or other improvement located or to be erected on the Land, (ii) all heating, plumbing and lighting apparatus, motors, engines and machinery, electrical equipment, incinerator apparatus, air conditioning equipment, water and gas apparatus, pipes, faucets, and all building service equipment and other fixtures of every description which are now or may hereafter be placed or used upon the Land or in any building or improvement now or hereafter located thereon, (iii) all additions, accessions, increases, parts, fittings, accessories, replacements, substitutions, betterments, repairs and proceeds to and of any and all of the foregoing, and (iv) all hereditaments, easements, appurtenances, estates, and other rights and interests now or hereafter belonging to or in any way pertaining to the Land or to any building or improvement now or hereafter located thereon. II. All furnishings, furniture, equipment and all other tangible personal property of any nature whatever now or hereafter located in the Buildings or elsewhere on the Land (the "Equipment "), including all additions, accessions, increases, parts, fittings, accessories, replacements, substitutions, betterments, repairs and proceeds to and of any and all such property, excluding any items released or disposed of in accordance with the Loan Agreement and excluding personal property owned by tenants occupying rental units in the Buildings. III. All rents, issues, condemnation awards, insurance proceeds, and similar revenues and income arising from the ownership of the Land, the Buildings and the Equipment and all proceeds and products thereof (collectively, the "Revenues and Income "). To have and to hold, the Land, Buildings and Equipment (the "Mortgaged Property"), and the Revenues and Income thereof, together with all privileges, hereditaments and appurtenances thereunto now or hereafter belonging, or in anyway appertaining, and the proceeds thereof, unto the Mortgagee, its successors and assigns forever, In trust nevertheless, upon the terms and trust as part of the Trust Estate set forth in the Indenture, for the equal and proportionate benefit, security and protection of all owners of the Bonds, without preference, priority or distinction as to lien or otherwise of any of the Bonds over any of the others, Provided, nevertheless, that these presents are upon the express condition that if the Mortgagor shall pay all Basic Payments under the Loan Agreement and cause to be paid the principal of, premium (if any) on and interest on the Bonds, and if the Mortgagor shall strictly observe and perform all of the terms, covenants and conditions contained in the Loan Agreement and this Mortgage, then this Mortgage and the estate, right and interest of the Mortgagee in and to the Mortgaged Property, and the Revenues and Income thereof, shall cease and be and become void and of no force and effect, and shall be satisfied at the Mortgagor's expense, otherwise to remain in full force and effect. The Mortgagor and the Mortgagee further agree as follows: 2 1. Definitions. Terms used in this Mortgage not otherwise defined in this Mortgage, but defined in the Loan Agreement or the Indenture, shall have the same meaning as in the Loan Agreement or Indenture unless the context clearly indicates a contrary meaning. follows: 2. Amount and Maturity of Bonds; Basic Payments. The parties represent and agree as (a) The Bonds shall be in the aggregate principal amount of $ and the final maturity thereof shall be 1, 20___, subject to the optional or mandatory redemption of the Bonds, including mandatory sinking fund redemption, all as further set forth in the Indenture. (b) Basic Payments are required to be made monthly by the Mortgagor in order to pay principal of, premium (if any) and interest on the Bonds when and as the same shall become due, or when required to be redeemed, as more fully provided in the Loan Agreement and Indenture. 3. Additional Pam. Under the Loan Agreement, the Mortgagor will be obligated, in addition to the Basic Payments described above, to pay all required rebate payments to the United States in respect of the Bonds, the reasonable fees and expenses of the Trustee and any paying agent of the Bonds, fees and expenses of the Issuer and any advances by the Issuer or the Trustee to meet obligations of the Mortgagor for (among other things) taxes, special assessments, utility charges, insurance premiums, and liens in connection with the Mortgaged Property and also to provide indemnity to the Issuer, all as more fully provided in the Loan Agreement, which obligations are additional indebtedness intended to be secured by this Mortgage. 4. Release of Property. Property included in the Mortgaged Property may be released from the lien of this Mortgage as provided in the Loan Agreement and Indenture. 5. Warranty of Title; Permitted Encumbrances. The Mortgagor does hereby covenant, represent and warrant that it is the lawful owner of and has good right and lawful authority to grant, bargain, sell, convey, warrant, mortgage, assign and pledge the Mortgaged Property and Revenues and Income thereof as provided herein; that the Mortgagor is and will continue to be well and truly seized of good and marketable title to the Mortgaged Property; that the Mortgaged Property and Revenues and Income thereof are and shall remain free and clear of all mortgages, liens, pledges, charges and encumbrances, excepting, with respect to the Land, Permitted Encumbrances, and excepting, with respect to any equipment, furnishings or other personal property, liens or security interests existing on the date hereof or hereafter arising with respect to any security interest granted in connection with purchase money acquisitions of such personal property the lien of which extends only to such purchased personal property; and that the Mortgagor does warrant and will defend the title to the Mortgaged Property and Revenues and Income thereof against all claims and demands whatsoever not permitted hereunder or under the Loan Agreement. "Permitted Encumbrances" shall mean the following: (a) liens for taxes and special assessments which are not then delinquent; (b) utility, access and other easements and rights -of -way, restrictions, restrictive covenants and exceptions that the Mortgagor certifies to the Mortgagee will not interfere with or impair the operation of the Mortgaged Property, or, if it is not being operated, the operation for which it was designed or last modified; (c) any mechanic's, laborer's, materialman's, supplier's, or vendor's lien or right in respect thereof if payment is not yet due under the contract in question; (d) such minor defects, irregularities, encumbrances, easements, rights -of -way and clouds on title as normally exist with respect to properties similar in character to the Land and which the Mortgagor certifies to the Mortgagee do not materially impair the property affected thereby for the purpose for which it was intended; (e) zoning laws; (f) liens arising in connection with workers' compensation, unemployment insurance, taxes, assessments, statutory obligations or liens, social security legislation, undetermined liens and charges incidental to construction, or other similar charges arising in the ordinary course of operation and not overdue, and such other liens and charges at the time required by law as a condition precedent to the transaction of the multifamily housing activities of the Mortgagor or the exercise of any privileges or licenses necessary to the Mortgagor; (g) purchase money liens on personalty as provided above in this Section 5; and (h) exceptions, easements, restrictions and encumbrances shown as of the date of this Mortgage on Exhibit B hereto. 6. Events of Default; Remedies. If any Event of Default as defined in the Loan Agreement shall occur and be continuing, or if any Event of Default as defined in the Indenture shall occur and be continuing, the Mortgagee shall have authority (i) to accelerate the Basic Payments and to declare the Bonds immediately due and payable as provided in the Loan Agreement and Indenture, and (ii) to pursue one or more of the remedies provided for in the Loan Agreement and Indenture respectively, and in lieu thereof or addition thereto, one or more of the following remedies and provisions for foreclosure or enforcement of this Mortgage: (a) The Mortgagee may proceed to protect and enforce its rights by a suit or suits in equity or at law, either for the specific performance of any covenant or agreement contained herein or in aid of the execution of any power herein granted, or for the foreclosure of this Mortgage, or for the enforcement of any other appropriate legal or equitable remedy. (b) The Mortgagee shall have and may exercise with respect to all personal property and fixtures which are part of the Mortgaged Property all the rights and remedies accorded upon default to a secured party under the Uniform Commercial Code, as in effect in the State of Minnesota. If notice to the Mortgagor of intended disposition of such property is required by law in a particular instance, such notice shall be deemed commercially reasonable if given (in the manner specified in the Loan Agreement and Indenture) at least 10 calendar days prior to the date of intended disposition. (c) The Mortgagee shall be entitled, without notice, except that which is required by law, and without any showing of waste of the Mortgaged Property, inadequacy of the Mortgaged Property as security, or insolvency of the Mortgagor, to the appointment of a receiver of the rents and profits of the Mortgaged Property including those past due, as permitted by Minnesota Statutes, Section 576.01. The Mortgagee or any receiver shall be entitled to receive and dispose of the Revenues and Income of the Mortgaged Property and to sue for and recover any account or other item of Revenues and Income from the Mortgagor or any account debtor or other third person. Subject to any order of a court appointing a receiver or otherwise having jurisdiction of the Trust Estate, the Mortgagee in its discretion may apply the Revenues and Income received by it as provided in Minnesota Statutes, Section 576.01, Subdivision 2, as follows: (i) to the 4 application of tenant security deposits as required by Minnesota Statutes Section 504.20, (ii) to the payment when due of prior or current real estate taxes or special assessments with respect to the Mortgaged Property, or the periodic escrow for the payment of the taxes or special assessments, (iii) to the payment when due of premiums for insurance of the types required by the Loan Agreement or this Mortgage, or the periodic escrow for the payment of the premiums, (iv) to the just and reasonable compensation of the Mortgagee for its own services and for the services of counsel, agents and employees by it properly engaged and employed, (v) to the reimbursement of advances made by the Mortgagee pursuant to the provisions of the Loan Agreement or this Mortgage, (vi) to the payment of the indebtedness secured hereby, (vii) to the expenses of operating the Mortgaged Property and conducting the business thereof, and (viii) to the repair, maintenance, renewal, replacement or alteration of the Mortgaged Property. (d) The Mortgagee may (and is hereby authorized and empowered to) foreclose this Mortgage by action or advertisement, pursuant to the statutes of the State of Minnesota in such case made and provided, power being expressly granted to sell the Mortgaged Property at public auction and convey the same to the purchaser in fee simple and to apply the proceeds arising from such sale, first, as provided in the Indenture, to the payment of the indebtedness secured thereby and hereby, including all reasonable expenses, liabilities and advances of the Mortgagee and the Bonds and interest thereon and Basic Payments relating thereto, and all legal costs and charges of such foreclosure, which costs, charges and fees the Mortgagor agrees to pay, and, second, to the payment of any obligations of the Mortgagor to the Issuer under the Loan Agreement, and, third, to return any surplus to the Mortgagor or such other person as may be entitled thereto. Such sale shall be made at public auction and at such place or places and at such time or times and upon such notice as the Mortgagee may be advised by counsel to be consistent with the laws applicable thereto, and upon such terms as the Mortgagee or the public officer conducting such sale may fix. Any such sale made pursuant to judicial proceedings or advertisement shall be made either as an entirety or in such parcels as may be directed by the court or as the Mortgagee in its sole discretion may determine. The Mortgagor, for it and all persons and corporations hereafter claiming through or under it, does hereby expressly waive and release all right to have the properties and rights comprised in the Mortgaged Property or in the Trust Estate marshaled upon any foreclosure or other enforcement hereof. The Mortgagee or public officer conducting such sale from time to time may adjourn any such sale to be made by it by announcement at the time and place appointed for such sale or for such adjourned sale or sales, and without further notice or publication it may make such sale at the time to which the same shall be so adjourned, but in the event of such adjournment or adjournments, sale shall be made within any limitation of time or number of adjournments prescribed by law and, in any event, within six months from the date of sale fixed in the advertisement or court order, unless notice of sale on some later date shall be given again in the manner provided by law. (e) Upon any foreclosure sale, the owners of any Bonds outstanding, or the Trustee, may bid for and purchase the Trust Estate or any part thereof and upon compliance with the terms of sale may hold, retain and possess and dispose of such property in their or its own absolute right without further accountability, and any purchaser at any such sale may, in paying the purchase money, turn in any of such Bonds or claims for interest in lieu of cash to the amount which shall, upon distribution of the net proceeds of such sale, be payable thereon. (f) Upon the completion of any sale or sales made under or by virtue of this Mortgage and the Indenture, the Mortgagee shall execute and deliver, or cause to be executed and delivered, to the accepted purchaser or purchasers the property sold with good and sufficient transfers, assigning and transferring all its right, title and interest in and to the properties sold. The Mortgagee and its successor or successors are hereby appointed the true and lawful attorney or attorneys irrevocable of the Mortgagor in its name and stead or in the name of the Mortgagee to make all necessary assignments, transfers and deliveries of the property thus sold, and for that purpose, the Mortgagee and its successors may execute all necessary instruments of assignment and transfer, and may substitute one or more persons with like power, the Mortgagor hereby ratifying and confirming all that said attorney or attorneys or such substitute or substitutes shall lawfully do by virtue hereof. Nevertheless, the Mortgagor, if so requested in writing by the Mortgagee, shall ratify and confirm any such sale or sales by executing and delivering to the Mortgagee or to such purchaser or purchasers all such instruments as may be advisable, in the judgment of the Mortgagee, for the purpose and as may be designated in such request. (g) Upon any sale made under the power of sale hereby granted or under judgment or decree in any judicial proceedings for the foreclosure or otherwise for the enforcement of this Mortgage or the Indenture, the receipt of the Mortgagee or of the officer making such sale shall be a sufficient discharge to the purchaser or purchasers at any sale for the purchase money, and such purchaser or purchasers, their assigns or personal representatives shall not, after paying such purchase money and receiving such receipt of the Mortgagee or of such officer therefor, be obliged to see to the application of such purchase money, or be in anyway answerable for any loss, misapplication, or nonapplication thereof. (h) The Mortgagor does hereby expressly consent to sale of the Mortgaged Property by advertisement pursuant to Minnesota Statutes, Chapter 580, which provides for sale after service of notice thereof upon the occupant of the Mortgaged Property and publication of said notice for six weeks in the county in which the Mortgaged Property is located, notwithstanding that service might not be made upon the Mortgagor personally, and that no hearing of any type is required in connection with the sale. Except as required by the aforesaid statutory provision, the Mortgagor hereby expressly waives any and all rights to notice of sale of the Mortgaged Property and any and all rights to a hearing of any type in connection with the sale of the Mortgaged Property. (i) In case of any Event of Default as aforesaid, to the extent that such rights may then lawfully be waived, neither the Mortgagor nor anyone claiming through or under it shall or will set up, claim, or seek to take advantage of any appraisement, valuation, stay, extension or redemption laws now or hereafter in force in any locality where any of the Mortgaged Property may be situated, in order to prevent or hinder the enforcement or foreclosure of this Mortgage or the Indenture, or the absolute sale of the Mortgaged Property, or the final and absolute putting into possession thereof, immediately after such sale, of the purchaser or purchasers thereat. 0) Any sale made under the power of sale granted hereby or under judgment or decree in any judicial proceedings for foreclosure or otherwise for the enforcement of this Mortgage or the Indenture shall, if and to the extent then permitted by law, operate to divest all right, title, interest, claims and demand whatsoever, either at law or in equity, of the Mortgagor of, in and to the property so sold, and be a perpetual bar both at law and in equity against the Mortgagor and against any and all persons, firms or corporations claiming or who may claim the property sold, or any part thereof, from, through or under the Mortgagor. 7. Possession of Mortgagor. Unless a default on the part of the Mortgagor shall exist under the Loan Agreement or an Event of Default shall exist under the Indenture, the Mortgagor shall be entitled to the possession and disposition of the Mortgaged Property and the Revenues and Income thereof subject, however, to the rights of the Trustee to the possession and disposition of the funds and accounts provided for in the Loan Agreement and Indenture. 0 8. Further Assurances. As provided in the Loan Agreement, the Mortgagor shall execute, deliver, file and record at its expense such supplements to this Mortgage, financing statements or other documents as may be required in the opinion of counsel, including (without limitation) any supplement to this Mortgage to particularly describe any properties which have been or are intended to become subject to the lien hereof. 9. Amendments. This Mortgage may be amended only as provided in the Loan Agreement and Indenture. 10. Loan Agreement and Indenture Control. Any provision in this Mortgage which is inconsistent with the Loan Agreement or the Indenture or any provision thereof shall be interpreted as if such provision were not contained herein and as if the provisions of the Loan Agreement and Indenture had been fully incorporated herein. In all cases of inconsistency, and in case of any amendment of or supplement to the Loan Agreement or Indenture, entered into in accordance with the provisions thereof, the provisions of the Loan Agreement (as amended and supplemented) and Indenture (as amended and supplemented) shall control. Reference is hereby made to copies of the Loan Agreement and Indenture to be placed on file at the offices of the Mortgagor and the Trustee and at the office of the Executive Director of the Issuer. 11. Fixture Filing. From the date of its recording, this Mortgage shall be effective as a financing statement filed as a fixture filing with respect to all goods constituting part of the Mortgaged Property which are or are to become fixtures related to the real estate described herein on Exhibit A. For this purpose, the following information is set forth: (a) Name and Address of Debtor: Yorktown Continental, LP Attn: David Dye Organization Identification No. (b) Name and Main Office Address of Secured Party: City of Edina, Minnesota 4801 West 50th Street Edina, Minnesota 55424 Attn: City Manager (c) Name and Main Office Address of Assignee of Secured Party: [U.S. Bank National Association 60 Livingston Avenue St. Paul, MN 55107 -2292 Attn: Corporate Trust Department] (d) This document covers goods which are or are to become fixtures. 12. Assignment of Leases and Rents. The Assignor does hereby grant, transfer and assign to the Assignee (the "Assignment ") all of the right, title and interest of the Assignor in and to (i) any and all present or future leases or tenancies, whether written or oral, covering or affecting any or all of the Mortgaged Property (all of which, together with any and all extensions, modifications and renewals thereof, are hereinafter collectively referred to as the "Leases" and each of which is referred to as a "Lease "), and (ii) all rents, profits and other income or payments of any kind due or payable or to become due or payable to or by the Assignor as the result of any use, possession or occupancy of all or any portion of the Mortgaged Property or as the result of the use of or lease of any personal property constituting a part of the Mortgaged Property (all of which are hereinafter collectively referred to as "Rents "), but not including any general revenues, income or accounts receivable of the Assignor, and whether the Rents accrue before or after foreclosure of the Mortgage or during the periods of redemption thereof, all for the purpose of securing: (a) All indebtedness under the Loan Agreement and all other sums secured by this Mortgage and Assignment pertaining to the Bonds; and (b) Performance and discharge of each and every obligation, covenant and agreement of the Assignor contained herein and in the Loan Agreement. 13. Covenant. The Assignor warrants and covenants that it is and will remain the absolute owner of the Rents and Leases free and clear of all liens and encumbrances other than the lien granted herein and Permitted Encumbrances; that it has not heretofore assigned or otherwise encumbered its interest in any of the Rents or Leases to any person other than as set forth in the Permitted Encumbrances; that it has the right under applicable law, under the Leases, and otherwise to execute and deliver this Assignment and keep and perform all of its obligations hereunder; that it will warrant and defend the Leases and Rents against all adverse claims, whether now existing or hereafter arising. 14. Performance of Leases. The Assignor will faithfully abide by, perform and discharge each and every obligation, covenant and agreement which it is now or hereafter becomes liable to observe or perform under any present or future Lease, and, at its sole cost and expense, enforce or secure the performance of each and every obligation, covenant, condition and agreement to be performed by the tenant under each and every Lease, subject to such waivers or extensions of time as may be granted by Assignee, provided that Assignee shall have the right, at any time, to rescind any such waiver or extension of time. The Assignor will observe and comply with all provisions of law applicable to the operation and ownership of the Mortgaged Property. The Assignor will at its sole cost and expense, appear in and defend any action or proceeding arising under, growing out of or in any manner connected with any Lease or the obligations, duties or liabilities of the Assignor or any tenant thereunder. 15. Collection of Rents. Unless permitted by the Mortgagee, the Assignor will not collect or accept any Rents for the use or occupancy of the Mortgaged Property for more than one month in advance. Security deposits shall not be deemed Rents for purposes of this paragraph. 16. Protecting the Security of This Assignment. Should the Assignor fail to perform or observe any covenant or agreement contained in this Assignment, then the Assignee, but without obligation to do so and without releasing the Assignor from any obligation hereunder, may make or do the same in such manner and to such extent as the Assignee may deem appropriate to protect the security hereof, including, specifically, without limiting its general powers, the right to appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of the Assignee, and also the right to perform and discharge each and every obligation, covenant and agreement of the Assignor contained in the Leases and in exercising any such powers to pay necessary costs and expenses, employ counsel and pay reasonable attorneys' fees. The Assignor will pay immediately upon demand all sums expended by the Assignee under the authority of this Assignment, together with interest thereon, and the same shall be added to said indebtedness and shall be secured hereby. 17. Present Assignment. This Assignment shall constitute a perfected, absolute and present assignment, provided that the Assignor shall have the right to collect, but not prior to accrual (except as permitted by paragraph 15 above), all of the Rents, and to retain, use and enjoy the same unless and until an Event of Default shall occur under the Loan Agreement, this Mortgage or the Indenture or the Assignor shall have breached any warranty or covenant in this Assignment. Any Rents which accrue prior to an Event of Default under the Loan Agreement or this Mortgage or the Indenture but are paid thereafter shall be paid to the Assignee. 18. Survival of Obligation to Comply with Mortgage and This Assignment. All of the Assignor's obligations under this Mortgage and Assignment shall survive foreclosure of this Mortgage and the Assignor covenants and agrees to observe and comply with all terms and conditions of this Mortgage and Assignment and to preclude any Event of Default from occurring under the Loan Agreement, this Mortgage or Indenture throughout any period of redemption after foreclosure of the Mortgage. 19. Additional Remedies. Upon the occurrence of any Event of Default specified in the Loan Agreement, the Indenture or herein, the Assignee may, at its option, in addition to any remedies set forth in Section 6, at any time: (a) in the name, place and stead of the Assignor and without becoming a mortgagee in possession (i) enter upon, manage and operate the Mortgaged Property or retain the services of one or more independent contractors to manage and operate all or any part of the Mortgaged Property; (ii) make, enforce, modify and accept surrender of the Leases; (iii) obtain or evict tenants, collect, sue for, fix or modify the Rents and enforce all rights of the Assignor under the Leases; and (iv) perform any and all other acts that may be necessary or proper to protect the security of this Assignment. (b) with or without exercising the rights set forth in subparagraph (a) above, give or require the Assignor to give, notice to any or all tenants under the Leases authorizing and directing the tenants to pay all Rents under the Leases directly to the Assignee. (c) without regard to waste, adequacy of the security or solvency of the Assignor, apply for, and the Assignor hereby consents to, the appointment of a receiver of the Mortgaged Property, whether or not foreclosure proceedings have been commenced under the Mortgage, and if such proceedings have been commenced, whether or not a foreclosure sale has occurred. The exercise of any of the foregoing rights or remedies and the application of the rents, profits and income pursuant to paragraph 20 shall not cure or waive any Event of Default (or notice of default) under the Mortgage or invalidate any act done pursuant to such notice. 20. Application of Rents, Profits and Income. All Rents collected by the Assignee or the receiver each month pursuant to subsection (b) of Section 19 above shall be applied for the purposes referred to in subsection (a) of Section 19 hereinabove. The rights and powers of the Assignee under this Assignment and the application of Rents under this paragraph 20 shall continue until expiration of the redemption period from any foreclosure sale, whether or not any deficiency remains after a foreclosure sale. 21. No Liability for Assignee. The Assignee shall not be obligated to perform or discharge, nor does it hereby undertake to perform or discharge, any obligation, duty or liability of the Assignor under the Leases. This Assignment shall not operate to place upon the Assignee responsibility for the control, care, management or repair of the Mortgaged Property or for the carrying out of any of the terms and conditions of the Leases. The Assignee shall not be responsible or liable for any waste committed on the Mortgaged Property, for any dangerous or defective condition of the Mortgaged Property, for any negligence in the management, upkeep, repair or control of said Mortgaged Property or for failure to collect the Rents. 22. Assignor's Indemnification. The Assignor shall and does hereby agree to indemnify and to hold the Assignee harmless of and from any and all claims, demands, liability, loss or damage (including all costs, expenses, and reasonable attorney's fees in the defense thereof) asserted against, imposed on or incurred by the Assignee in connection with or as a result of this Assignment or the exercise of any rights or remedies under this Assignment or under the Leases or by reason of any alleged obligations or undertakings of the Assignee to perform or discharge any of the terms, covenants or agreements contained in the Leases which do not result from Assignee's own gross negligence or willful misconduct. Should the Assignee incur any such liability, the amount thereof, together with interest thereon, shall be secured hereby and the Assignor shall reimburse the Assignee therefor immediately upon demand. 23. Authorization to Tenants. Upon notice from the Assignee that it is exercising the remedy set forth in paragraph 19(b) of this Assignment, the tenants under the Leases are hereby irrevocably authorized and directed to pay to the Assignee all sums due under the Leases, and the Assignor hereby consents and directs that said sums shall be paid to the Assignee without the necessity for a judicial determination that an Event of Default has occurred hereunder or that the Assignee is entitled to exercise its rights hereunder, and to the extent such sums are paid to the Assignee, the Assignor agrees that the tenant shall have no further liability to the Assignor for the same. The signature of the Assignee alone shall be sufficient for the exercise of any rights under this Assignment and the receipt of the Assignee alone for any sums received shall be a full discharge and release therefor to any such tenant or occupant of the Mortgaged Property. Checks for all or any part of the Rents collected under this Assignment shall upon notice from the Assignee be drawn to the exclusive order of the Assignee. 24. Assignee an Attorney -In -Fact. The Assignor hereby irrevocably appoints the Assignee, and its successors and assigns, as its agent and attorney -in -fact, which appointment is coupled with an interest, with the right but not the duty to exercise any rights or remedies hereunder and to execute and deliver during the term of this Assignment such instruments as the Assignee may deem appropriate to make this Assignment and any further assignment effective, including without limiting the generality of the foregoing, the right to endorse on behalf and in the name of the Assignor all checks from tenants in payment of Rents that are made payable to the Assignor. 25. Assignee Not a Mortp-agee in Possession. Nothing herein contained and no actions taken pursuant to this Assignment shall be construed as constituting the Assignee a mortgagee in possession. 26. Specific Assignment of Leases. The Assignor will transfer and assign to the Assignee, upon written notice by Assignee, any and all specific Leases that the Assignee requests. Such transfer or assignment by the Assignor shall be upon the same or substantially the same terms and conditions as are herein contained, and the Assignor will properly file or record such assignments, at the Assignor's expense, if requested by the Assignee. 27. Unenforceable Provisions Severable. All rights, powers and remedies provided herein may be exercised only to the extent that the exercise thereof does not violate any applicable law, and are intended to be limited to the extent necessary so that they will not render this Assignment invalid, unenforceable or not entitled to be recorded, registered or filed under any applicable law. If any term of this Assignment shall be held to be invalid, illegal or unenforceable, the validity of other terms hereof shall in no way be affected thereby. It is the intention of the parties hereto, however, that this Assignment 10 shall confer upon the Assignee the fullest rights, remedies and benefits available pursuant to Minnesota Statutes, Section 559.17 and Section 576.01, Subdivision 2. 28. Limited Recourse. Notwithstanding any provision or obligation to the contrary set forth in this Mortgage, (a) the liability of the Mortgagor and any partner, trustee, director, officer, employee, or agent thereof (collectively, "Mortgagor Parties ") under this Mortgage or the Loan Agreement shall be limited to the property subject to this Mortgage or to such other security as may from time to time be given or have been given for payment of the Mortgagor's obligations under the Loan Agreement and Bonds, and any judgment rendered against the Mortgagor Parties under this Mortgage or the Loan Agreement and Bonds shall be limited to the property subject to this Mortgage and any other security so given for satisfaction thereof; and (b) no deficiency or other personal judgment nor any order or decree of specific performance shall be sought or rendered against the Mortgagor Parties, their successors, transferees or assigns, in any action or proceeding arising out of this Mortgage, the Loan Agreement, the Bonds, or any judgment, order or decree rendered pursuant to any such action or proceeding; provided, however, that nothing in this Mortgage, the Loan Agreement or the Bonds shall limit the Issuer's or Trustee's ability to exercise any right or remedy that it may have with respect to any property pledged or granted to the Issuer or the Trustee, or both of them, or to exercise any right against the Mortgagor or any other person or entity on account of any damage caused by fraud or intentional misrepresentation by the Mortgagor or any intentional damage of the property subject to the Mortgage. Furthermore, the Mortgagor shall be fully liable for the misapplication of (i) proceeds paid prior to any foreclosure under any and all insurance policies, under which the Trustee and/or the Issuer is named as insured, by reason of damage, loss or destruction to any portion of the property subject to this Mortgage, to the full extent of such misapplied proceeds and awards, (ii) proceeds or awards resulting from the condemnation, or other taking in lieu of condemnation, prior to any foreclosure of the property subject to this Mortgage, to the full extent of such misapplied proceeds and awards (iii) rents, issues, profits and revenues received or applicable to a period subsequent to the occurrence of a default under this Mortgage, the Loan Agreement and the Bonds but prior to foreclosure, and (iv) proceeds from the sale of all or any part of the property subject to this Mortgage and any other proceeds that, under the terms hereof, should have been paid to the Issuer or the Trustee. Furthermore, the Mortgagor shall be fully liable for the breach of the Mortgagor's covenants contained in Sections 3.2, 4.4 (1), (2) and (3), 7.4, 9.5, 10.11 and 10.12 of the Loan Agreement; provided, however in no event shall the Mortgagor Parties be personally liable for payment of the principal of, premium, if any, or interest on the Bonds. The limit on the Mortgagor's liability set forth in this paragraph shall not, however, be construed, and is not intended in any way, to constitute a release, in whole or in part, of the Mortgagor's obligations under the Loan Agreement or a release, in whole or in part, or an impairment of the lien and security interest of this Mortgage, the Loan Agreement and the Bonds upon the properties described therein, or to preclude the Issuer or the Trustee from foreclosing this Mortgage in case of any default or enforcing any other right of the Issuer or the Trustee, or to alter, limit or affect the liability of any person or party who may now or hereafter or prior hereto guarantee, or pledge, grant or assign its assets or collateral as security for, the obligations of the Mortgagor under this Mortgage, the Loan Agreement and the Bonds. 29. Extended Use Agreement. The Mortgagor and Mortgagee agree that the lien of this Mortgage shall be subordinate to the portion of an extended low- income housing commitment (as such term is defined in Section 42(h)(6)(B) of the Internal Revenue Code of 1986, as amended) (the "Extended Use Agreement ") to be recorded against the Land that restricts the operation of the Buildings for a period of three years following foreclosure or transfer by instrument in lieu of foreclosure. All other provisions of such Extended Use Agreement may terminate upon foreclosure under this Mortgage or transfer of the Mortgaged Property by instrument in lieu of foreclosure (or comparable conversion of the Bonds, in accordance with Section 42(h)(6)(E) of the Internal Revenue Code of 1986, as amended). 11 30. Successors and Assigns. The covenants and agreements herein contained shall bind, and the rights hereunder shall inure to the respective successors and assigns of the Assignor and the Assignee, including any purchaser at a foreclosure sale. 31. Captions. The captions and headings of the paragraphs of this Mortgage are for convenience only and shall not be used to interpret or define the provisions of this Mortgage. (The remainder of this page is intentionally left blank.) 12 YORKTOWN CONTINENTAL, LP, Minnesota limited partnership By: Its: General Partner go STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN ) Its The foregoing instrument was acknowledged before me this day of July, 2014, by , the of a Minnesota limited liability company, the general partner of Yorktown Continental, LP, a Minnesota limited partnership, for and on behalf of the limited partnership. Notary Public [Signature Page - Combination Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement] S -1 EXHIBIT A to Combination Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement LEGAL DESCRIPTION A -1 EXHIBIT B to Combination Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement (Permitted Encumbrances) Those encumbrances shown on Schedule B of Commitment No. with respect to the mortgaged property. IM DRAFT 6/20/14 REGULATORY AGREEMENT between THE CITY OF EDINA, MINNESOTA as City U.S. BANK NATIONAL ASSOCIATION, as Trustee and YORKTOWN CONTINENTAL, LP as Borrower Dated as of July 1, 2014 This Instrument Drafted by: Dorsey & Whitney LLP 50 South Sixth Street Minneapolis, Minnesota 55402 TABLE OF CONTENTS Page Section 1. Federal Tax Covenants Relating to the Project .......................... ..............................3 Section 2. State Law Covenants of Borrower Relating to the Project; Maximum Rent ........... 4 Section 3. Occupancy Restrictions ............................................................. ..............................5 Section4. [ Reserved] .................................................................................. ..............................6 Section 5. Term of Restrictions .................................................................. ..............................6 Section 6. Transfer Restrictions .................................................................. ..............................7 Section7. Enforcement ............................................................................... ..............................8 Section 8. Indemnification .......................................................................... ..............................9 Section9. Amendment ................................................................................ ..............................9 Section10. Severability ................................................................................ ..............................9 Section11. Notices ....................................................................................... ..............................9 Section12. Governing Law ......................................................................... .............................10 Section13. Attorneys' Fees .......................................................................... .............................10 Section 14. Regulatory Agreement Binding; Covenants Run with the Land ...........................10 EXHIBIT A Legal Description ................................................................. ............................... A -1 EXHIBIT B Form of Income Certification .................................................. ............................B -1 i REGULATORY AGREEMENT THIS REGULATORY AGREEMENT, dated as of July 1, 2014 (this "Regulatory Agreement "), is made and entered into between the City of Edina, Minnesota, a body corporate and politic of the State of Minnesota (the "City "), U.S. Bank National Association, a national banking association, as trustee (the "Trustee ") under that certain Trust Indenture, dated as of July 1 (the "Indenture "), and Yorktown Continental, LP, a Minnesota limited partnership (the "Borrower "), as the owner of the property described in EXHIBIT A hereto. RECITALS WHEREAS, the City is authorized to issue bonds to provide financing for multifamily housing developments in accordance with the terms of Minnesota Statutes, Chapter 462C, as amended. WHEREAS, for the purpose of financing the acquisition, rehabilitation, and equipping by Borrower of an existing 264 -unit building containing 262 one - bedroom units and two two - bedroom units as a senior low- income housing project located at 7151 York Avenue South in the City (the "Project"), the City will issue its $ Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014A (the "Series 2014A Bonds ") and its Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014B (the "Series 2014B Bonds "; together with the Series 2014A Bonds, the "Bonds "), in the original aggregate principal amount of $ pursuant to the Indenture. WHEREAS, the City will loan the proceeds derived from the sale of the Bonds to the Borrower pursuant to a Loan Agreement dated as of July 1, 2014 (the "Loan Agreement ") between the Borrower and the City. WHEREAS, for good and valuable consideration, the City, the Trustee and the Borrower have determined to enter into this Regulatory Agreement in order to impose on the Project certain requirements of the Code (as hereinafter defined) and of the Act (as hereinafter defined) applicable to thereto. NOW, THEREFORE, the City, the Trustee and the Borrower do hereby impose upon the Project the following covenants, restrictions, charges, and easements, which shall run with the land and shall be binding and a burden upon the Project and all portions thereof, and upon any purchaser, grantee, owner, or lessee of any portion of the Project and any other person or entity having any right, title, or interest therein and upon the respective heirs, executors, administrators, devisees, successors, and assigns of any purchaser, grantee, owner, or lessee of any portion of the Project and any other person or entity having any right, title, or interest therein, for the length of time that this Regulatory Agreement shall be in full force and effect. 2 Section 1. Federal Tax Covenants Relating to the Project The Borrower represents, warrants and covenants with respect to the Project as follows: a) The Project will be acquired, rehabilitated and equipped for the purpose of providing multifamily residential rental property, and the Project constitutes and will constitute a "qualified residential rental project," as such term is used in Section 142(a)(7) of the Code. b) At no time will either the Borrower or any related party occupy a unit in the Project other than units occupied or to be occupied by agents, employees or representatives of the Borrower and reasonably required for the proper maintenance or management of the Project. In the event a unit within the Project is occupied by the Borrower, the Project must include no fewer than four units not occupied by the Borrower. C) The Project consists of one "development" and, for this purpose, proximate buildings or structures are part of the same development only if owned for federal income tax purposes by the same person and if the buildings are financed pursuant to a common plan. Buildings or structures are proximate if they are all located on a single parcel of land or several parcels of land which are contiguous except for the interposition of a road, street, stream or similar property. d) All of the units in the Project will contain complete living, sleeping, eating, cooking, and sanitation facilities for a single person or a family. e) None of the units in the Project will at any time be utilized on a transient basis, or used as a hotel, motel, dormitory, fraternity house, sorority house, rooming house, hospital, sanitarium or rest home. f) The Borrower shall not restrict Qualifying Tenants (as defined in Section 3(a) hereof) from the enjoyment of unrestricted access to all common facilities and common areas of the Project. g) The Borrower shall not discriminate on the basis of race, creed, color, sex, or national origin in the lease, use or occupancy of the Project or in connection with the employment or application for employment of persons for the operation and management of the Project. h) No part of the Project constitutes commercial property, and no health care services will be furnished by the Borrower to residents of the Project. i) All records of the Borrower relating to the Project, including all tenant lists and applications, shall be maintained in the State of Minnesota (the "State ") in a reasonable condition for proper audit and subject to examination during business hours by representatives of the City or Trustee, upon reasonable notice provided to the Borrower. j) The proceeds of the Bonds will be used in accordance with the representations, warranties and covenants of Section _ of the Loan Agreement. k) All tenant leases shall be expressly subordinate to any mortgage on the Project, with the exception of any restrictions imposed under Section 42(h)(6) of the Code, and all leases of units to Qualifying Tenants shall contain clauses, among others, wherein each individual lessee 1. certifies the accuracy of the statements made in its application and Certification of Tenant Eligibility (as defined in Section 3(b) hereof); 2. agrees that the family income, family composition and other eligibility requirements at the time the lease is executed shall be deemed substantial and material obligations of his or her tenancy; that he or she will comply promptly with all requests for income, family composition and other information relevant to determining low- or moderate - income status from the Borrower or Trustee; and that his or her failure or refusal to comply with a request for information with respect thereto shall be deemed a violation of a substantial obligation of his or her tenancy; and 3. agrees that his or her lease may be terminated on thirty (30) days' notice after any noncompliance by such tenant if such noncompliance would adversely affect the federal tax- exempt status of interest on the Bonds. Section 2. State Law Covenants of Borrower Relating to the Project; Maximum Rent The Borrower represents, warrants and covenants with respect to the Project as follows: a) The Borrower understands that the City is authorized to issue the Bonds to finance the Project only if the Project complies with the restrictions set forth in Minnesota Statutes, Section 474A.047, and that the Project is a "project" as described in Subdivision 1(a) of such Section. b) Consistent with the requirements of Minnesota Statutes, Section 474A.047, Subdivision 2, for fifteen (15) years after the date hereof, the maximum rental rates of at least twenty percent (20 %) of the units in the Project will not exceed the area fair market rent or exception fair market rents for existing housing, if applicable, as established by the federal Department of Housing and Urban Development. The Borrower shall annually certify for said fifteen (15) years that the rental rates are within these limitations and provide a copy of the annual certification to the State Commissioner of Finance, the City and the Trustee. C) The Borrower understands that Minnesota Statutes, Section 474A.047, Subdivision 3, requires that the Borrower's compliance with the rental rate requirements of the Section be monitored. The City, the Trustee or one or more agents acting on its or their behalf (the "Monitor ") may monitor such compliance and issue an order of noncompliance if the Project is found to be out of compliance with these requirements. If the Monitor issues an order of noncompliance, the Borrower shall pay an initial penalty to the City equal to one -half of one percent (0.5 %) of the total amount of bonds issued for the Project under Minnesota Statutes, Chapter 474A. For each additional year the Project is out of compliance, as evidenced by an order of noncompliance issued by the Monitor, the Borrower shall pay an additional penalty, which penalty must be increased in each instance by one -half of one percent (0.5 %) of the total amount of such bonds. Insubstantial violations may be waived. No order of noncompliance shall become final and effective until thirty (30) days after its dated date, or longer if the Borrower, in good faith, contests the validity or accuracy of the order. 4 This Section 2 is limited in its entirety to applicable provisions of Minnesota Statutes, Chapters 462C and 474A, but does not limit any other obligations of the Borrower under this Regulatory Agreement. Section 3. Occupancy Restrictions For the period specified in Section 5 hereof, the Borrower represents, warrants and covenants as follows: a) Federal Tax Requirements. "Qualifying Tenants" means those persons and families (treating all occupants of a unit as a single family) who shall be determined from time to time by the Borrower to be eligible as "...individuals whose income is sixty percent (60 %) or less of area median gross income..." within the meaning of Section 142(d)(2)(A) of the Code. For purposes of this definition, the occupants of a residential unit shall not be deemed to be Qualifying Tenants if all the occupants of such residential unit at any time are "students," as defined in Section 151(c)(4) of the Code, no one of whom is entitled to file a joint return under Section 6013 of the Code. At least forty percent (40 %) of the completed units in the Project shall be occupied (or treated as occupied as provided herein) by Qualifying Tenants and such units will be of comparable quality and will be a range of sizes and numbers of bedrooms comparable to those units which are available to other tenants. In determining the applicable income limit, the Borrower shall apply the provisions of Revenue Ruling 89 -24. "Income" shall be determined in a manner consistent with determinations of lower- income families under Section 8 of the United States Housing Act of 1937 (and as presently set forth in 24 CFR 813.106). The determination of whether an individual or family is of low- or moderate - income shall be made at the time the tenancy commences and on an ongoing basis thereafter, determined at least annually. Any unit occupied by an individual or family who is a Qualifying Tenant at the commencement of occupancy shall not continue to be treated as if occupied by a Qualifying Tenant during their tenancy in such unit if such individual or family subsequently ceases to be of low- or moderate - income unless such individual's or family's income does not exceed 140% of the maximum income qualifying as low- or moderate - income for a family of its size. In the event that a unit does cease to be treated as occupied by a Qualifying Tenant for such reason, and thereupon less than forty percent (40 %) of the completed units in the Project would not be occupied (or treated as occupied) by Qualifying Tenants, the next vacant unit of comparable or smaller size not previously occupied by a Qualifying Tenant must be rented to a Qualifying Tenant. Any completed unit vacated by a Qualifying Tenant shall be treated as occupied by a Qualifying Tenant until reoccupied (on other than a temporary basis not in excess of 31 days), at which time a redetermination shall be made as to whether the unit is occupied by a Qualifying Tenant. The Borrower shall make reasonable efforts to rent the vacated unit, or the next available unit of comparable or smaller size, to a Qualifying Tenant before any similar units in the Project are rented to tenants not constituting Qualifying Tenants. b) Certification of Tenant Eligibility. As a condition to initial and continuing occupancy, each person who is intended to be a Qualifying Tenant on and after the date of this Regulatory Agreement shall be required annually to sign and deliver to the Borrower a Certification of Tenant Eligibility in the general form attached hereto as Exhibit B (the "Certification of Tenant Eligibility "), in which the prospective Qualifying Tenant certifies that he or she or his or her family qualifies as being of low- or moderate - income. In addition, such person shall be required to provide whatever other information, documents or certifications are deemed necessary by the Trustee to substantiate the eligibility certification, on an ongoing annual basis. C) Lease. The form of lease to be utilized by the Borrower in renting any units in the Project on and after the date of this Regulatory Agreement to any person who is intended to be a Qualifying Tenant shall provide for termination of the lease and consent by such person to immediate eviction in accordance with applicable law for failure to qualify as a Qualifying Tenant as a result of any material misrepresentation made by such person with respect to the Certification of Tenant Eligibility. d) Retention. Certifications of Tenant Eligibility will be maintained on file by the Borrower with respect to each Qualifying Tenant who resides in a Project unit or resided therein during the immediately preceding calendar year, commencing with the calendar year ending December 31, 2014, and the Borrower will file a copy thereof with the Trustee. e) Annual Certification to United States Treasury Department. During the term of this Regulatory Agreement, on or before June 30 of each calendar year (or on or before such other date as may hereafter be prescribed by the Code), the Borrower shall 1. certify to the United States Treasury Department (on Form 8703 or such other form as may hereafter be prescribed by the Code or the Treasury Department) that the Project continues to meet the requirements of Section 142(d) of the Code, and 2. provide a copy of such annual certification to the Trustee. The Borrower shall provide a similar certification to the Trustee more frequently than annually (but not more frequently than quarterly), upon request by the Trustee. Section 4. [Reserved] Section 5. Term of Restrictions a) Occupancy Restrictions. The Occupancy Restrictions set forth in Section 3 hereof take effect on the first day on which ten percent (10 %) of the residential units in the Project are occupied and end on the latest of the following: 1. the date which is 15 years after the date on which at least 50% of the units in the Project were first occupied; 2. the first day on which none of the Bonds are Outstanding; or 3. the date on which any assistance provided with respect to the Project under Section 8 of the United States Housing Act of 1937 terminates. b) Reserved . CI C) Earlier Termination of Restrictions. Notwithstanding the provisions of (a) and (b) of this Section 5, this Regulatory Agreement and all other restrictions hereunder shall terminate upon foreclosure of a mortgage or transfer of title to the Project by deed in lieu of foreclosure and retirement of the Bonds; provided, however, that the restrictions pursuant to Section 42(h)(6) of the Code shall survive foreclosure for three (3) years. In addition, this Regulatory Agreement and the restrictions hereunder shall also cease to apply in the event of an involuntary noncompliance caused by unforeseen events such as fire, seizure, requisition, a change in federal law or an action of a federal agency after the date of issue of the Bonds which prevents the Trustee from enforcing the requirements of this Regulatory Agreement or condemnation or similar event; provided in all such cases that the Bonds are retired as soon as reasonably practicable, or 2. any insurance proceeds or condemnation award or other amounts received as a result of such loss or destruction are used to provide a project which meets the requirements of Section 142(d) or any successor provision of the Code and applicable Treasury Regulations, or any successor law or regulation, in which case this Regulatory Agreement shall be automatically reinstated as to such successor project. However, the foregoing provisions of this paragraph shall cease to apply in the event of foreclosure, transfer of title by deed in lieu of foreclosure or similar event if, at any time subsequent to such event and during the period set forth in paragraph (a) of this Section 5, the Borrower or a related person obtains an ownership interest in the Project for federal tax purposes. d) Termination of Regulatory Agreement. Unless earlier terminated pursuant to the provisions of paragraph (c) of this Section 5, this Regulatory Agreement shall terminate upon the later of the termination of the Occupancy Restrictions as provided in paragraph (a) of this Section 5. e) Removal from Real Estate Records. Upon delivery by the Borrower to the Trustee of an opinion of independent counsel that the conditions to termination of this Regulatory Agreement have been met, the Trustee shall, upon request by the Borrower or its assigns, file any documentation prepared by the Borrower and approved by independent counsel as necessary to remove this Regulatory Agreement from the real estate records of Hennepin County, Minnesota. Section 6. Transfer Restrictions The Borrower shall cause or require as a condition precedent to any conveyance, transfer, assignment or any other disposition of the Project prior to the termination of the [Rental Restrictions and] Occupancy Restrictions provided herein (the "Transfer ") that the transferee of the Project, pursuant to the Transfer, will assume in writing, in a form acceptable to Dorsey & Whitney LLP, or any other attorney at law or firm of attorneys, of nationally- recognized standing in matters pertaining to the federal tax exemption of interest on bonds and other obligations issued by states and political subdivisions thereof, duly admitted to practice law before the highest court of any state of the United States of America ( "Bond Counsel "), all duties and obligations of the Borrower under this Regulatory Agreement, including this Section 6. 7 Section 7. Enforcement a) The Borrower shall, upon reasonable notice and during normal business hours, permit any duly authorized representative of the Trustee to inspect any books and records of the Borrower regarding the Project and the operation thereof, including the incomes of Qualifying Tenants. b) The Borrower shall submit upon request any information, documents or certificates which the Trustee or City deem reasonably necessary to substantiate the Borrower's continuing compliance with the provisions of this Regulatory Agreement or the Code. C) The Borrower covenants that it will not knowingly take or permit any action that would adversely affect the exclusion of interest on the Bonds from gross income of the owners thereof for purposes of federal income taxation. Moreover, the Borrower covenants to take any lawful action (including amendment of this Regulatory Agreement as may be necessary, in the opinion of bond counsel reasonably acceptable to the Trustee) to comply fully with all applicable rules, rulings, policies, procedures, regulations or other official statements promulgated or proposed by the Department of the Treasury or the Internal Revenue Service from time to time pertaining to obligations the interest on which is tax- exempt under Section 142(d) or any successor provision of the Code and affecting the Project. d) If the Borrower defaults in the performance or observance of any covenant, agreement or obligation of the Borrower set forth in this Regulatory Agreement and such default remains uncured for a period of 30 days after written notice thereof is given by the Trustee to the Borrower, or within such further time as Bond Counsel determines is necessary to correct the violation without loss of tax exemption of interest on the Bonds, but not to exceed any limitations set by applicable regulations, then the Trustee may 1. institute and prosecute any proceeding at law or in equity to abate, prevent or enjoin such default, or to recover money damages caused by such default (including, without limitation, issuing an order of noncompliance for substantial violations pursuant to Minnesota Statutes, Section 474A.047, Subdivision 3, and assessing the annual penalty authorized thereby, but not to accelerate repayment of amounts due under the Loan Agreement except as may be permitted by the Loan Agreement), and 2. exercise any remedies available pursuant to the Loan Agreement, Indenture or any mortgage on the Project. Any default may be cured by the Borrower's limited partners, and any such cure shall be accepted or rejected on the same basis as any cure by the Borrower. The Borrower agrees that an action to recover money damages for default will not be an adequate remedy at law, and the Trustee shall have the right to institute an action for and seek specific performance by the Borrower to remedy such default. The Monitor agrees, before issuing a notice of noncompliance pursuant to Minnesota Statutes, Section 474A.047, Subdivision 3, to give the Borrower a draft of the notice and to give the Borrower 90 days to respond to said draft. The provisions hereof are imposed upon and made applicable to the Project and shall run with the Project and shall be enforceable against the Borrower, each purchaser, grantee, owner or lessee of the Project, and the respective heirs, legal representatives, successors and assigns of the Borrower and each such purchaser, grantee, owner or lessee. No delay in enforcing the provisions hereof as to any breach or violation shall impair, damage or waive the right of any party entitled to enforce the same or to obtain relief against or recover for the continuation or repetition of such breach or violation or any similar breach or violation thereof at any later time or time. e) The Borrower acknowledges that the primary purpose for requiring compliance by the Borrower with the restrictions provided in this Regulatory Agreement is to comply with the Code and to preserve the federal income tax exemption of interest on the Bonds to the owners thereof, and that the Trustee, on behalf of the owners of the Bonds, who are declared to be third -party beneficiaries of this Regulatory Agreement, shall be entitled, for any breach of the provisions hereof, to all remedies both at law and in equity in the event of any default hereunder. Section 8. Indemnification The Borrower hereby indemnifies, and agrees to defend and hold harmless, the Trustee from and against all liabilities, losses, damages, costs, expenses (including attorneys' fees and expenses), causes of action, suits, allegations, claims, demands and judgments of any nature arising from the consequences of a legal or administrative proceeding or action brought against it, on account of any failure by the Borrower to comply with the terms of this Regulatory Agreement, or on account of any representation or warranty of the Borrower contained herein being untrue, including, without limitation, any action for damages, or for payment or reimbursement of taxes, penalties and interest, brought by the owners of the Bonds or state or federal taxing authorities as a result of the interest on the Bonds becoming includable in gross income of the owners thereof for federal and State income tax purposes; provided, however, that the Borrower shall not be required to indemnify the Trustee for any claims which arise from the negligence or malfeasance of the Trustee. These provisions shall survive payment of the Bonds and termination of this Regulatory Agreement and the Indenture. Section 9. Amendment It is agreed that the parties hereto shall promptly amend this Regulatory Agreement (in a form suitable for recording) a) to the extent and when necessary or advisable, in the opinion of bond counsel reasonably acceptable to the Trustee, to preserve the exclusion of interest on the Bonds from gross income of the owners thereof for purposes of federal income taxation, and b) to the extent requested by either party if, in the opinion of such bond counsel, such amendment will not adversely affect the federal tax exemption of interest on the Bonds and is in compliance with the Act. Section 10. Severability The invalidity of any clause, part or provision of this Regulatory Agreement shall not affect the validity of the remaining portions thereof. Section 11. Notices All notices to be given pursuant to this Regulatory Agreement shall be in writing and shall be deemed given when mailed by certified or registered mail, return receipt requested, or 9 hand - delivered, to the parties hereto at their respective addresses set forth below. Each notice, certificate or other communication given hereunder by the Borrower shall be given to the Trustee at the address set forth below. The Borrower and Trustee may, by notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent. The initial addresses for notices and other communications are as follows: To the Borrower: Yorktown Continental, LP [ADDRESS] [CITY, STATE] Attn: [CONTACT NAME] With a copy to: Winthrop & Weinstine, P.A. Capella Tower, Suite 3500 225 South Sixth Street Minneapolis, Minnesota 55402 -4629 Attn: Norm Jones To the Trustee: U.S. Bank National Association 60 Livingston Avenue, 3rd Floor EP- MN -WS3C St. Paul, MN 55107 -2292 Attention: Corporate Trust Services To the City: City of Edina, Minnesota 4801 W. 50th St. Edina, Minnesota 55424 Attn: City Manager Section 12. Governing Law This Regulatory Agreement shall be governed by the laws of the State and, where applicable, the laws of the United States of America. Section 13. Attorneys' Fees In case of any action at law or in equity, including an action for declaratory relief, brought against the Borrower to enforce the provisions of this Regulatory Agreement, the Borrower agrees to pay reasonable attorneys' fees and other reasonable expenses incurred by the Trustee in connection with such action. Section 14. Regulatory Agreement Binding; Covenants Run with the Land This Regulatory Agreement and the covenants contained herein shall run with the land and shall bind the Borrower (including each general, special or limited partner of the Borrower, each of whom the Borrower hereby represents to have authorized the Borrower to bind by this Regulatory Agreement, and, to the extent controlled by the Borrower or any of the foregoing, each person who is "related" to any of the foregoing within the meaning of Section 147(a) of the Code), its heirs, legal representatives, executors, administrators, successors in office or interest, 10 and assigns, and all subsequent owners of the Project or any interest therein, and the benefits hereof shall inure to the Trustee and its successors and assigns, for the term of this Regulatory Agreement as provided in Section 5 hereof. 11 IN WITNESS WHEREOF, the parties have caused this Regulatory Agreement to be signed by their respective duly authorized representatives as of the day and year first written above. CITY OF EDINA, MINNESOTA By: Mayor By: City Manager STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of , 2014, by James Hovland, the Mayor, and Scott Neal, the City Manager, of the City of Edina, Minnesota, on behalf of the City. Notary Public [SIGNATURE PAGE OF THE BORROWER TO THE REGULATORY AGREEMENT] YORKTOWN CONTINENTAL, LP By: General Partner By: [TITLE] STATE OF MINNESOTA ) ss COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 2014, by the of , a Minnesota , the general partner of Yorktown Continental, LP, a Minnesota limited partnership, for and on behalf of the limited partnership. Notary Public [EXECUTION PAGE OF THE TRUSTEE TO THE REGULATORY AGREEMENT] U.S. BANK NATIONAL ASSOCIATION STATE OF MINNESOTA ) ss. COUNTY OF RAMSEY ) [TITLE] The foregoing instrument was acknowledged before me this _ , 2014, by , the National Association, a national association, on behalf of the banking association. Notary Public _ day of of U.S. Bank EXHIBIT A Legal Description A -1 EXHIBIT B Form of Income Certification TENANT INCOME CERTIFICATION Effective Date: Last Name Move -in Date: ❑ Initial Certification ❑ Recertification ❑ Other (MM/DD/YY): PART I. DEVELOPMENT DATA Property Name: County: BIN #: Address: Unit Number: # Bedrooms: PART H. HOUSEHOLD COMPOSITION HH Br # Last Name First Name & Middle Initial Relationship to Head of Household Date of Birth (MM/DD/YY) F/T Student (Y or N) Social Security or Alien Reg. No. 1 HEAD 2 3 TOTALS $ $ 4 $ Add totals from (A) through (D) above TOTAL INCOME (E): $ $ 5 Enter Column (H) Total Passbook Rate if over $5,000 $ x 2.00% _ (J) Imputed Income Enter the greater of the total column I, or J: imputed income TOTAL INCOME FROM ASSETS (K) $ $ (L) Total Annual Household Income from all sources [Add (E) + (K)] $ 6 PART III. GROSS ANNUAL INCOME (USE ANNUAL AMOUNTS) HH Br # (A) Employment or Wages (B) Soc. Security / Pensions (C) Public Assistance (D) Other Income (G) C/I (H) Cash Value of Asset (I) Annual Income from Asset TOTALS $ $ $ $ Add totals from (A) through (D) above TOTAL INCOME (E): $ IM PART IV. INCOME FROM ASSETS HH Mbr# (F) Type of Asset (G) C/I (H) Cash Value of Asset (I) Annual Income from Asset TOTALS: $ $ Enter Column (H) Total Passbook Rate if over $5,000 $ x 2.00% _ (J) Imputed Income Enter the greater of the total column I, or J: imputed income TOTAL INCOME FROM ASSETS (K) $ $ (L) Total Annual Household Income from all sources [Add (E) + (K)] $ IM HOUSEHOLD CERTIFICATION & SIGNATURES The information on this form will be used to determine maximum income eligibility. Uwe have provided for each person(s) set forth in Part II acceptable verification of current anticipated annual income. I /we agree to notify the landlord immediately upon any member of the household moving out of the unit or any new member moving in. I /we agree to notify the landlord immediately upon any member becoming a full -time student. Under penalties of perjury, Uwe certify that the information presented in this Certification is true and accurate to the best of my /our knowledge and belief. The undersigned further understands that providing false representations herein constitutes an act of fraud. False, misleading or incomplete information may result in the termination of the lease agreement. Signature (Date) Signature (Date) Signature (Date) Signature (Date) PART V. DETERMINATION OF INCOME ELIGIBILITY TOTAL ANNUAL HOUSEHOLD Household Meets RECERTIFICATION ONLY: INCOME FROM ALL SOURCES $ Income Restriction From Item (L) on page 1 at: Current Income Limit x 140% ❑ 60% ❑ 50% ❑ 40% ❑ 30% $ Current Income Limit per Family Size: $ ❑ % Household income exceeds 140% at recertification: Household Income at Move -in $ ❑ Yes ❑ No Household Size at Move -in: PART VI. RENT Tenant Paid Rent $ Rent Assistance: $ Utility Allowance $ Other non - optional charges: $ GROSS RENT FOR UNIT: Tenant paid rent plus Utility Unit Meets Rent Restriction at: Allowance and other non - optional $ charges) ❑ 60% [150% ❑ 40% ❑ 30% ❑ _% Maximum Rent Limit for this unit: $ PART VII. STUDENT STATUS ARE ALL OCCUPANTS FULL -TIME If yes, enter student explanation" Student explanation: STUDENTS? (also attach documentation) 1. TANF assistance 2. Job training program ❑ yes ❑ no Enter 3. Single parent/dependent child *Exception 4 for marr6e&joint return eq the only exception 1 -4 4. Married/joint return_*_ av2olable for units necessgry to qualffify tax - exempt honds PART VIII. PROGRAM TYPE Mark the program(s) listed below (a. through e.) for which this household's unit will be counted toward the property's occupancy requirements. Under each program marked, indicate the household's income status as established by this certification/recertification a. Tax Credit ❑ b. HOME ❑ c. Tax Exempt ❑ d. AHDP ❑ e. ❑ (Name of Program) See Part V above. Income Status Income Status Income Status Income Status ❑ < 50% AMGI ❑ 50% AMGI ❑ <_ 50% AMGI ❑ i ❑ < 60% AMGI ❑ 60% AMGI ❑ < 80% AMGI ❑ ❑ <_ 80% AMGI ❑ 80% AMGI ❑ < OI ** ❑ < OI ** ❑ < OI ** ❑ OI ** ** Upon recertification, household was determined over income (OI) according to eligibility requirements of the program(s) marked above. SIGNATURE OF OWNER / REPRESENTATIVE Based on the representations herein and upon the proofs and documentation required to be submitted, the individual(s) named in Part II of this Tenant Income Certification is /are eligible under the provisions of Section 42 of the Internal Revenue Code, as amended, and the Land Use Restriction Agreement (if applicable), to live in a unit in this Project. SIGNATURE OF OWNER / REPRESENTATIVE DATE IC INSTRUCTIONS FOR COMPLETING TENANT INCOME CERTIFICATION This form is to be completed by the owner or an authorized representative. Part I — Development Data Check the appropriate box for Initial Certification (move -in), Recertification (annual recertification), or Other. If Other, designate the purpose of the recertification (i.e., a unit transfer, a change in household composition, or other state- required recertification). Move -in Date Enter the date the tenant has or will take occupancy of the unit. Effective Date Enter the effective date of the certification. For move -in, this should be the move -in date. For annual recertification, this effective date should be no later than one year from the effective date of the previous (re)certification. Property Name Enter the name of the development. County Enter the county (or equivalent) in which the building is located. BIN # Enter the Building Identification Number (BIN) assigned to the building (from IRS Form 8609). Address Enter the unit number. Unit Number Enter the unit number. # Bedrooms Enter the number of bedrooms in the unit. Part II — Household Composition List all occupants of the unit. State each household member's relationship to the head of the household by using one of the following coded definitions: H Head of household S Spouse A Adult co- tenant O Other family member C Child F Foster child L Live -in caretaker N None of the above Enter the date of birth, student status, and Social Security number or alien registration number for each occupant. I: If there are more than seven occupants, use an additional sheet of paper to list the remaining household members and attach it to the certification. Part III — Annual Income See HUD Handbook 4350.3 for complete instructions on verifying and calculating income, including acceptable forms of verification. From the third party verification forms obtained from each income source, enter the gross amount anticipated to be received for the 12 months from the effective date of the (re)certification. Complete a separate line for each income - earning member. List the respective household member number from Part II. Column (A) Enter the annual amount of wages, salaries, tips, commissions, bonuses, and other income from employment; distributed profits and /or net income from a business. Column (B) Enter the annual amount of Social Security, Supplemental Security Income, pensions, military retirement, etc. Column (C) Enter the annual amount of income received from public assistance (i.e., TANF, general assistance, disability, etc.) Column (D) Enter the annual amount of alimony, child support, unemployment benefits, or any other income regularly received by the household. Row (E) Add the totals from columns (A) through (D) above. Enter this amount. Part IV — Income from Assets See HUD Handbook 4350.3 for complete instructions on verifying and calculating income from assets, including acceptable forms of verification. From the third party verification forms obtained from each asset source, list the gross amount anticipated to be received during the 12 months from the effective date of the certification. List the respective household member number from Part II and complete a separate line for each member. Column (F) List the type of asset (i.e., checking account, savings account, etc.) Column (G) Enter C (for current, if the family currently owns or holds the asset), or I (for imputed, if the family has disposed of the asset for less than fair market value within two years of the effective date of ( re)certification). Column (H) Enter the cash value of the respective asset. Column (I) Enter the anticipated annual income from the asset (i.e., savings account balance multiplied by the annual interest rate). I: N TOTALS Add the total of Column (H) and Column (I), respectively. If the total in Column (H) is greater than $5,000, you must do an imputed calculation of asset income. Enter the Total Cash Value, multiply by 2 % and enter the amount in (J), Imputed Income. Row (K) Enter the Greater of the total in Column (I) or (J) Row (L) Total Annual Household Income from All Sources Add (E) and (K) and enter the total HOUSEHOLD CERTIFICATION AND SIGNATURES After all verifications of income and/or assets have been received and calculated, each household member age 18 or older must sign and date the Tenant Income Certification. For move -in, it is recommended that the Tenant Income Certification be signed no earlier than five days prior to the effective date of the certification. Part V — Determination of Income Eligibility Total Annual Household Enter the number from item (L). Income from all sources Current Income Limit per Enter the Current Move -in Income Limit for the household size. Family Size Household income at move -in For recertifications only. Enter the household income from the Household size at move -in move -in certification. On the adjacent line, enter the number of household members from the move -in certification. Household Meets Income Check the appropriate box for the income restriction that the Restriction household meets according to what is required by the set - aside(s) for the project. Current Income Limit x 140% For recertification only. Multiply the Current Maximum Move -in Income Limit by 140% and enter the total. Below, indicate whether the household income exceeds that total. If the Gross Annual Income at recertification is greater than 140% of the current income limit, then the available unit rule must be followed. O Part VI — Rent Tenant Paid Re Enter the amount the tenant pays toward rent (not including rent assistance payments such as Section 8). Rent Assistance Enter the amount of rent assistance, if any. Utility Allowance Enter the utility allowance. If the owner pays all utilities, enter zero. Other non - optional Enter the amount of non - optional charges, such as mandatory garage rent, charges storage lockers, charges for services provided by the development, etc. Gross Rent for Unit Enter the total of Tenant Paid Rent plus Utility Allowance and other non - optional charges. Maximum Rent Enter the maximum allowable gross rent for the unit. Limit for this unit Unit Meets Rent Check the appropriate rent restriction that the unit meets according to what is Restriction at ?? required by the set - aside(s) for the project. Part VII — Student Status If all household members are full -time* students, check "yes." If at least one household member is not a full -time student, check "no." If "yes" is checked, the appropriate exemption must be listed in the box to the right. If none of the exemptions apply, the household is ineligible to rent the unit. * Full time is determined by the school the student attends. Part VIII — Program Type Mark the program(s) for which this unit will be counted toward the property's occupancy requirements. Under each program marked, indicate the household's income status as established by this certification/recertification. If the property does not participate in the HOME, Tax - Exempt Bond, Affordable Housing Disposition, or other housing program, leave those sections blank. Tax Credit See Part V above. HOME If the property participates in the HOME program and the unit this household will occupy will count towards the HOME program set - asides, mark the appropriate box indicating the household's designation. Tax Exempt If the property participates in the Tax Exempt Bond program, mark the appropriate box indicating the household's designation. IM AHDP If the property participates in the Affordable Housing Disposition Program (AHDP), and this household's unit will count towards the set -aside requirements, mark the appropriate box indicating the household's designation. Other If the property participates in any other affordable housing program, complete the information as appropriate. SIGNATURE OF OWNER / REPRESENTATIVE It is the responsibility of the owner or the owner's representative to sign and date this document immediately following execution by the resident(s). The responsibility of documenting and determining eligibility (including completing and signing the Tenant Income Certification form) and ensuring such documentation is kept in the tenant file is extremely important and should be conducted by someone well- trained in tax credit compliance. These instructions should not be considered a complete guide on tax credit compliance. The responsibility for compliance with federal program regulations lies with the owner of the buildings) for which the credit is allowable. • DRAFT 6/20/14 TRUST INDENTURE between THE CITY OF EDINA, MINNESOTA as Issuer and U.S. BANK NATIONAL ASSOCIATION, as Trustee RELATING TO City of Edina, Minnesota $ Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014A Dated as of July 1, 2014 INDEX (This Index is not a part of the Indenture, but rather is for convenience of reference only) Page Preambles........................................................................................................... ..............................1 GrantingClauses ......................................................... ............................... . ... . .1 ARTICLE I DEFINITIONS Section1.01 Definitions ............................................................................. ..............................4 Section 1.02 Interpretation ........................................................................ .............................15 Section 1.03 Captions and Headings ......................................................... .............................16 ARTICLE II AUTHORIZATION AND TERMS OF BONDS Section 2.01 Authorized Amount of Bonds .............................................. .............................17 Section 2.02 Issuance of Bonds ................................................................ .............................17 Section 2.03 Authorization of Bonds; Sale and Delivery of the Bonds .... .............................17 Section 2.04 Special Obligations .............................................................. .............................18 ARTICLE III Section3.01 Form of Bonds ..................................................................... .............................19 Section 3.02 Execution and Authentication of Bonds .............................. .............................19 Section 3.03 Source of Payment of Bonds ................................................ .............................19 Section 3.04 Payment and Ownership of Bonds ....................................... .............................20 Section 3.05 Registration, Transfer and Exchange of Bonds .................... .............................20 Section 3.06 Mutilated, Lost, Wrongfully Taken or Destroyed Bonds .... .............................21 Section 3.07 Cancellation of Bonds .......................................................... .............................22 Section 3.08 Special Agreement with Holders ......................................... .............................22 Section 3.09 Book -Entry Only System ..................................................... .............................22 ARTICLE IV REDEMPTION OF BONDS Section 4.01 Redemption of Bonds ........................................................... .............................25 Section 4.02 Notice of Redemption .......................................................... .............................25 ARTICLE V PROVISIONS AS TO FUNDS, PAYMENTS, PROJECT AND AGREEMENT ii Section 5.01 Creation of Funds; Allocation of Bond Proceeds ................ .............................28 Section 6.02 Section 5.02 Application of Loan Payments ............................................. .............................28 Section 6.03 Section 5.03 Disbursements from the Project Fund .................................. .............................29 Section5.04 Bond Fund ............................................................................ .............................30 Section 6.04 Section 5.05 Investment of Special Funds ................................................ .............................30 Section 6.05 Section 5.06 Moneys to be Held in Trust .................................................. .............................31 Section 6.06 Section 5.07 Nonpresentment of Bonds .................................................... .............................32 Section 6.07 Section 5.08 Repayment to the Borrower from the Bond Fund ................ .............................32 Section 6.08 Section5.09 Rebate Fund ......................................................................... .............................32 Section 6.09 Section5.10 Valuation .............................................................................. .............................32 Section 6.10 Section 5.11 Completion of the Project .................................................... .............................33 Section 5.12 Collateral Fund ..................................................................... .............................33 Section 5.13 Costs of Issuance Fund ........................................................ .............................33 ARTICLE VI THE TRUSTEE, REGISTRAR, PAYING AGENTS AND AUTHENTICATING AGENTS Section 6.01 Trustee's Acceptance and Responsibilities .......................... .............................34 Section 6.02 Certain Rights and Obligations of the Trustee ..................... .............................35 Section 6.03 Fees, Charges and Expenses of Trustee, Registrar, Paying Agents and Authenticating Agents .......................................................... .............................38 Section 6.04 Intervention by Trustee ........................................................ .............................39 Section 6.05 Successor Trustee ................................................................. .............................39 Section 6.06 Appointment of Co- Trustee ................................................. .............................40 Section 6.07 Resignation by the Trustee ................ ............................... Section 6.08 Removal of the Trustee ........................................................ .............................41 Section 6.09 Appointment of Successor Trustee ...................................... .............................41 Section 6.10 Adoption of Authentication ................................................. .............................42 Section 6.11 Section 6.12 Section 6.13 Section 6.14 Section 6.15 Section 6.16 Section 6.17 Section 6.18 Section 7.01 Section 7.02 Section 7.03 Section 7.04 Section 7.05 Registrars.............................................. ............................... Designation and Succession of Paying Agents .................... Designation and Succession of Authenticating Agents ....... Dealingin Bonds ................................... ............................... Representations, Agreement and Covenants of Trustee ...... Right of Trustee to Pa Taxes and Other Char es ..................42 ..................44 ..................44 ..................45 ..................45 Yg ....... ............................... Interpleader.................................................................. ............................... Survival of Certain Provisions ..................................... ............................... ARTICLE VII DEFAULT PROVISIONS AND REMEDIES OF TRUSTEE AND HOLDERS ......46 ......46 ......46 Defaults; Events of Default .................................................. .............................48 Noticeof Default .................................................................. .............................48 Acceleration......................................................................... .............................49 Other Remedies; Rights of Holders ..................................... .............................49 Right of Holders to Direct Proceedings ............................... .............................50 iii Section 7.06 Application of Moneys ......................................................... .............................50 Section 7.07 Remedies Vested in Trustee ................................................. .............................52 Section 7.08 Rights and Remedies of Holders .......................................... .............................52 Section 7.09 Termination of Proceedings ................................................. .............................53 Section 7.10 Waivers of Events of Default ............................................... .............................53 ARTICLE VIII SUPPLEMENTAL INDENTURES Section 8.01 Supplemental Indentures Generally ..................................... .............................55 Section 8.02 Supplemental Indentures Not Requiring Consent of Holders ...........................55 Section 8.03 Supplemental Indentures Requiring Consent of Holders ..... .............................56 Section 8.04 Consent of Borrower ............................................................ .............................57 Section 8.05 Authorization to Trustee; Effect of Supplement .................. .............................58 Section 8.06 Opinion of Counsel .............................................................. .............................58 Section 8.07 Modification by Unanimous Consent .................................. .............................58 ARTICLE IX DEFEASANCE Section 9.01 Release of Indenture ............................................................. .............................60 Section 9.02 Payment and Discharge of Bonds ........................................ .............................60 Section 9.03 Survival of Certain Provisions ............................................. .............................61 ARTICLE X COVENANTS AND AGREEMENTS OF THE ISSUER Section 10.01 Covenants and Agreements of the Issuer ............................. .............................62 Section 10.02 Observance and Performance of Covenants, Agreements, Authority and Actions................................................................................. .............................62 Section 10.03 Trustee May Enforce Issuer's Rights ................................... .............................63 ARTICLE XI AMENDMENTS TO AGREEMENT, REGULATORY AGREEMENT AND NOTE Section 11.01 Amendments Not Requiring Consent of Holders ................ .............................64 Section 11.02 Amendments Requiring Consent of Holders ....................... .............................64 ARTICLE XII MEETINGS OF HOLDERS Section 12.01 Purposes of Meetings ........................................................... .............................66 Section 12.02 Call of Meetings ................................................................... .............................66 Section12.03 Voting ................................................................................... .............................66 Section12.04 Meetings ............................................................................... .............................67 1V Section 12.05 Miscellaneous ARTICLE XIII MISCELLANEOUS .............................67 Section 13.01 Limitation of Rights ............................................................. .............................68 Section13.02 Severability .......................................................................... .............................68 Section13.03 Notices ................................................................................. .............................68 Section 13.04 Suspension of Mail and Courier Service .............................. .............................69 Section 13.05 Payments Due on Saturdays, Sundays and Holidays ........... .............................69 Section 13.06 Instruments of Holders ......................................................... .............................70 Section 13.07 Priority of this Indenture ...................................................... .............................70 Section 13.08 Extent of Covenants; No Personal Liability ......................... .............................70 Section 13.09 Binding Effect ...................................................................... .............................71 Section 13.10 Counterparts ......................................................................... .............................71 Section 13.11 Governing Law ..................................................................... .............................71 Section 13.12 Security Advice Waiver ....................................................... .............................71 Section13.13 Patriot Act ............................................................................ .............................71 Section 13.14 FHA Federal Laws and Requirements Control .................... .............................71 Signatures ................ ............................... Exhibit A — Series 2014A Bond Form ... v ....... ............................... S -1 ...... ............................... A -1 TRUST INDENTURE THIS TRUST INDENTURE (the "Indenture "), dated as of July 1, 2014, is made by and between the City of Edina, Minnesota, a body corporate and politic of the State of Minnesota (the "Issuer "), and U.S. Bank National Association, a national banking association, with its designated corporate trust office located in St. Paul, Minnesota, as Trustee (the "Trustee "), under the circumstances summarized in the following recitals (the capitalized terms not defined in the recitals and granting clauses being used therein are defined in Article I hereof). RECITALS WHEREAS, pursuant to and in accordance with the laws of the State of Minnesota (the "State "), including without limitation, Minnesota Statutes, Chapters 462A, 462C and 474A, as amended (the "Act "), the Issuer has determined to issue and sell its $ Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014A (the "Bonds ") and to loan the proceeds to be derived from the sale thereof to the Borrower to assist in the financing of the acquisition of an existing 264 -unit building located at 7151 York Avenue South in the City containing 262 one - bedroom units and two two- bedroom units and the rehabilitation and equipping thereof as a senior low - income housing project (the "Project "); WHEREAS, the Bonds will be secured by this Indenture, and the Issuer is authorized to execute and deliver this Indenture and to do or cause to be done all acts provided or required herein to be performed on its part; WHEREAS, pursuant to its lawful authority under the Act, the Issuer and the Borrower have executed that certain Loan Agreement, by the terms of which the Issuer agrees to loan the proceeds of the Bonds to the Borrower for the Project; WHEREAS, the Loan will be evidenced by the Note executed by the Borrower in the form attached as Exhibit A to the Loan Agreement and delivered to the Issuer, and assigned by the Issuer to the Trustee; WHEREAS, all acts and conditions required to happen, exist and be performed precedent to and in the issuance of the Bonds and the execution and delivery of this Indenture have happened, exist and have been performed, or at the delivery of the Bonds will exist, will have happened and will have been performed (i) to make the Bonds, when issued, delivered and authenticated, valid obligations of the Issuer in accordance with the terms thereof and hereof and (ii) to make this Indenture a valid, binding and legal trust agreement for the security of the Bonds in accordance with its terms; and WHEREAS, the Trustee has accepted the trusts created by this Indenture, and in evidence thereof has joined in the execution hereof. NOW, THEREFORE, THIS INDENTURE WITNESSETH, that to secure the payment of Bond Debt Service Charges on the Bonds according to their true intent and meaning, to secure the performance and observance of all of the covenants, agreements, obligations and conditions contained therein and herein, and to declare the terms and conditions upon and subject to which the Bonds are and are intended to be issued, held, secured and enforced, and in consideration of the premises and the acceptance by the Trustee of the trusts created herein and of the purchase and acceptance of the Bonds by the Holders, and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Issuer has executed and delivered this Indenture and absolutely assigns hereby to the Trustee, and to its successors in trust, and its and their assigns, all right, title and interest of the Issuer in and to (i) the Issuer Revenues, including, without limitation, all Loan Payments and other amounts receivable by or on behalf of the Issuer under the Loan Agreement in respect of repayment of the Loan, (ii) the Special Funds, including all accounts in those funds and all moneys deposited therein and the investment earnings on such moneys, (iii) all right, title and interest of the Issuer in the proceeds derived from the sale of the Bonds, and any securities in which moneys in the Special Funds are invested, and (except for moneys in the Rebate Fund and otherwise required to be rebated to the United States of America under the Code) the proceeds derived therefrom, and any and all other real or personal property of every name and nature from time to time hereafter by delivery or by writing of any kind pledged, assigned or transferred, as and for additional security hereunder by the Issuer or by anyone in its behalf, or with its written consent, to the Trustee, which is hereby authorized to receive any and all such property at any and all times and to hold and apply the same subject to the terms of this Indenture, and (iv) the Loan Agreement, except for the Unassigned Issuer's Rights (the foregoing collectively referred to as the "Trust Estate "), TO HAVE AND TO HOLD unto the Trustee and its successors in that trust and its and their assigns forever; BUT IN TRUST, NEVERTHELESS, and subject to the provisions hereof, (a) except as provided otherwise herein, for the equal and proportionate benefit, security and protection of all present and future Holders of the Bonds issued or to be issued under and secured by this Indenture, (b) for the enforcement of the payment of the principal of and interest on the Bonds, when payable, according to the true intent and meaning thereof and of this Indenture, and (c) to secure the performance and observance of and compliance with the covenants, agreements, obligations, terms and conditions of this Indenture, in each case, without preference, priority or distinction, as to lien or otherwise, of any one Bond over any other by reason of designation, number, date of the Bonds or of authorization, issuance, sale, execution, authentication, delivery or maturity thereof, or otherwise, so that each Bond and all Bonds shall have the same right, lien and privilege under this Indenture and shall be secured equally and ratably hereby, provided, however, that (i) if the principal of the Bonds and the interest due or to become due thereon shall be well and truly paid, at the times and in the manner to which reference is made in the Bonds, according to the true intent and meaning thereof, or the outstanding Bonds shall have been paid and discharged in accordance with Article IX hereof, and 2 (ii) if all of the covenants, agreements, obligations, terms and conditions of the Issuer under this Indenture shall have been kept, performed and observed and there shall have been paid to the Trustee, the Registrar and the Paying Agents all sums of money due or to become due to them in accordance with the terms and provisions hereof, then this Indenture and the rights assigned hereby shall cease, determine and be void, except as provided in Section 9.03 hereof with respect to the survival of certain provisions hereof; otherwise, this Indenture shall be and remain in full force and effect. It is declared that all Bonds issued hereunder and secured hereby are to be issued, authenticated and delivered, and that all Issuer Revenues assigned hereby are to be dealt with and disposed of under, upon and subject to, the terms, conditions, stipulations, covenants, agreements, obligations, trusts, uses and purposes provided in this Indenture. The Issuer has agreed and covenanted, and agrees and covenants with the Trustee and with each and all Holders, as follows: THIS SPACE INTENTIONALLY LEFT BLANK 3 ARTICLE I DEFINITIONS Section 1.01 Definitions In addition to the words and terms defined elsewhere in this Indenture or by reference to the Loan Agreement, unless the context or use clearly indicates another meaning or intent: "Act" means Minnesota Statutes, Chapters 462A, 462C and 474A, as amended. "Additional Payments" means the amounts required to be paid by the Borrower pursuant to the provisions of Section 4.2 of the Loan Agreement. "Affiliate" of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, "control" when used with respect to any specified Person means the power to direct the policies of such Person, directly or indirectly, whether through the power to appoint and remove its directors, the ownership of voting securities, by contract, or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing. "Authorized Attesting Officer" means the City Clerk of the Issuer who, in accordance with the laws of the State, the bylaws or other governing documents of the Issuer, or practice or custom, regularly attests or certifies official acts and records of the Issuer, and includes any assistant or deputy officer to the principal officer or officers exercising such responsibilities. "Authorized Borrower Representative" means the person or persons designated to act on behalf of the Borrower by written certificate furnished to the Issuer and the Trustee containing the specimen signature of such person and signed on behalf of the Borrower by an officer of the manager of either of the general partners of the Borrower, which certificate may designate an alternate or alternates. "Authorized Denomination" means (a) so long as the Bonds are rated "A," without regard to a modifier (or the equivalent) or higher by a Rating Agency, $5,000 or any integral multiple of $5,000 in excess thereof, or (b) at any other time, $100,000, or any integral multiple of $0.01 in excess thereof, except that in each case one Bond may be in a principal amount equal to the then Outstanding principal amount of the Bonds. "Authorized Official" means the Mayor, City Manager or Finance Director of the Issuer, and any other officer of the Issuer designated by certificate of any of the foregoing as authorized by the Issuer to perform a specified act, sign a specified document or otherwise take action with respect to the Bonds. The Trustee may conclusively presume that a person designated in a written certificate filed with it as an Authorized Official is an Authorized Official until such time as such provider files with it a written certificate identifying a different person or persons to act in such capacity. 4 "Available Moneys" means, as of any date of determination, any of the following, as applicable: (a) the proceeds of the Bonds; (b) proceeds from the sale of GNMA Securities; (c) proceeds from advances on the FHA Insured Mortgage Loan deposited directly with the Trustee by the FHA Lender; [(d) proceeds from advances on the Subordinate Loan deposited directly by the Subordinate Lender with the Trustee;] (e) any other amounts, including the proceeds of refunding bonds, for which the Trustee has received an opinion of counsel to the effect that the use of such amounts to make payments on the Bonds would not violate Section 362(a) of the Bankruptcy Code (or that relief from the automatic stay provisions of such Section 362(a) would be available from the bankruptcy court) or be avoidable as preferential payments under Section 547 of the Bankruptcy Code should the Issuer or the Borrower become a debtor in proceedings commenced under the Bankruptcy Code; (f) the proceeds of any letter of credit; or (g) investment earnings derived from the investment of moneys described in (a), (b), (c), (d), (e) or (f). "Bankruptcy Code" means Title 11 of the United States Code entitled "Bankruptcy," as in effect now and in the future, or any successor statute. "Bond Counsel" shall mean, collectively, Dorsey & Whitney LLP or any other attorney or firm of attorneys designated by the Issuer who has a national reputation for skill in connection with the authorization and issuance of municipal obligations under Sections 103 and 141 through 150 (or any successor provisions) of the Code. "Bond Debt Service Charges" means, for any period or payable at any time, the principal of and interest on the Bonds for that period or payable at that time whether due at maturity or upon redemption or acceleration. "Bond Fund" means the Bond Fund created in Section 5.01 of this Indenture. "Bond Payment Date" means each Interest Payment Date and any other date Bond Debt Service Charges on the Bonds are due, whether at maturity, upon acceleration or otherwise. "Bond Resolution" means that certain Bond Resolution relating to the Project, adopted by the governing body of the Issuer on July _, 2014. "Bond Year" means each annual period of twelve months the first of which commences on the date of the original issuance and delivery of the Bonds and the last of which ends on the maturity of the Bonds, except that the first and last Bond Year may be less than twelve months. "Bonds" means the Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project) Series 2014A of the Issuer, authorized in the Bond Resolution and Section 2.02 hereof in an aggregate amount of $ "Book Entry Form" or "Book Entry System" means, with respect to the Bonds, a form or system, as applicable, under which (i) physical Bond certificates in fully registered form are issued only to a Depository or its nominee, with the physical Bond certificates "immobilized" in the custody of the Depository and (ii) the ownership of book entry interests in Bonds and Bond Debt Service Charges thereon may be transferred only through a book entry made by Persons other than the Issuer or the Trustee. The records maintained by Persons other than the Issuer or the Trustee constitute the written record that identifies the owners, and records the transfer, of book entry interests in the Bonds and Bond Debt Service Charges thereon. "Borrower" means Yorktown Continental, LP, a Minnesota limited partnership, and its lawful successors and assigns to the extent permitted by the Loan Agreement. "Borrower Documents " means the Loan Agreement, Note and Regulatory Agreement. "Business Day" means a day of the week, other than a Saturday or a Sunday, on which commercial banks located in the city in which the principal corporate trust office of the Trustee are not required or authorized to remain closed. "Closing Date" means July _, 2014. "Code" means the Internal Revenue Code of 1986, as amended, and all applicable regulations (whether proposed, temporary or final) under the Code and the statutory predecessor of the Code, and any official rulings and judicial determinations under the foregoing applicable to the Bonds. "Collateral Fund" means the Collateral Fund created pursuant to Section 5.01 of this Indenture. "Combined Bonds" means the Bonds and the Issuer's Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014B. "Completion Date" means the date of substantial completion of the Project evidenced in accordance with the requirements of Section 3.7 of the Loan Agreement. "Construction Period" means the period between the beginning of the acquisition, rehabilitation, remodeling, improving and equipping of the Project and the Completion Date. "Continuing Disclosure Agreement" means the Continuing Disclosure Agreement, dated as of July _, 2014, between the Borrower and [U.S. Bank National Association], as Dissemination Agent. R "Contractual Obligation" means for any Person any obligation, covenant, or condition contained in any evidence of Indebtedness or any agreement or instrument under or pursuant to which any evidence of Indebtedness has been issued, or any other material agreement, instrument or guaranty, to which such Person is a party or by which such Person or any of its assets or properties are bound. "Costs of Issuance Fund" means the Costs of Issuance Fund created pursuant to Section 5.01 of this Indenture. "Depository" means, with respect to the Bonds, DTC, until a successor Depository shall have become such pursuant to the applicable provisions of this Indenture, and thereafter, Depository shall mean the successor Depository. Any Depository shall be a securities depository that is a clearing agency under federal law operating and maintaining, with its participants or otherwise, a Book Entry System to record ownership of book entry interests in the Bonds or Bond Debt Service Charges thereon, and to effect transfers of book entry interests in the Bonds. "Disbursement Request" shall have the meaning set forth in Section 5.03(a) hereof. "DTC" means The Depository Trust Company (a limited purpose trust company), New York, New York, and its successors or assigns. "DTC Participant" means any participant contracting with DTC under its book entry system and includes securities brokers and dealers, banks and trust companies and clearing corporations. "Eligible Investments" means non -AMT tax exempt obligations rated in the highest short term category by S &P, which shall mature or be subject to tender or redemption at par on or prior to the earlier of (A) 35 days from the date of investment or (B) the date such moneys are needed for the purposes thereof. "Event of Default" means any of the events described as an Event of Default in Section 7.01 hereof or Section 7.1 of the Loan Agreement. "Extraordinary Services" and "Extraordinary Expenses" mean all services rendered and all reasonable expenses properly incurred by the Trustee under this Indenture, other than Ordinary Services and Ordinary Expenses. Extraordinary Services and Extraordinary Expenses shall specifically include services rendered or expenses incurred by the Trustee in connection with, or in contemplation of, an Event of Default. [ "Fair Market Value" means the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm's length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an established securities market (within the meaning of Section 1273 of the Code) and, otherwise, the term "Fair Market Value" means the acquisition price in a bona fide, arm's - length transaction (as referenced above) if (i) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Code, (ii) the investment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other 7 investment agreement) that is acquired in accordance with applicable regulations under the Code, (iii) the investment is a United States Treasury Security —State and Local Government Series that is acquired in accordance with applicable regulations of the United States Bureau of Public Debt, or (iv) the investment is a commingled investment fund in which the Issuer and related parties do not own more than a 10% beneficial interest therein if the return paid by the fund is without regard to the source of the investment. To the extent required by .applicable regulations under the Code, the term "investment" will include a "hedge. "] "Favorable Opinion of Bond Counsel" means an opinion of Bond Counsel that the action proposed will not, in and of itself, cause interest on the Bonds to become includable in gross income of the holders thereof. "FHA " means the Federal Housing Administration. "FHA Insurance Commitment" means the commitment for insurance of advances issued by the Federal Housing Commissioner of HUD with respect to the Project, dated "FHA Insurance Regulations" means the FHA Regulations promulgated under the National Housing Act. "FHA Insured Mortgage Loan " means the mortgage loan in the original principal amount of $ to be advanced by the FHA Lender to the Borrower and insured by FHA under Section [223V221(d)(4)] of the National Housing Act, as amended. "FHA Lender " means , a , its successors and assigns. "FHA Loan Documents" means the documents related to the FHA Insured Mortgage Loan, including the FHA Insurance Commitment, the FHA Note, the FHA Mortgage, the HUD Regulatory Agreement and any and all other documents, agreements, or instruments which evidence or secure the indebtedness evidenced by the FHA Note. "FHA Mortgage" means the first -lien priority [Name of FHA Mortgage: Multifamily Mortgage, Assignment of Leases and Rents, and Security Agreement] dated as of [Dated Date] from Borrower for the benefit of FHA Lender to secure the repayment of the FHA Note. "FHA Note" means the $[FHA Loan Amount] FHA- Insured Note (Multistate) dated as of [Dated Date] from Borrower to FHA Lender to evidence its indebtedness under the FHA Insured Mortgage Loan. "Fiscal Year" means, with respect to a Person, that period beginning on January 1 of each year and ending on December 31 of that year or such other fiscal year as shall be designated by such Person as its annual accounting period. "Force Majeure" means any of the causes, circumstances or events described as constituting Force Majeure in Section 7.1 of the Loan Agreement. 8 "GAAP" means generally accepted accounting principles applied on a consistent basis. "GNMA" means the Government National Mortgage Association, a corporate instrumentality of the United States within the United States Department of Housing and Urban Development organized and existing under the National Housing Act. "GNMA Documents" means the GNMA Guaranty and the documents related to the GNMA Guaranty. "GNAM Guaranty" means the guaranty made by GNMA pursuant to the provisions of Section 306(g) of Title III of the National Housing Act, as amended, and the regulations promulgated under the National Housing Act. "GNMA Mortgage - Backed Securities Guide" means the GNMA Handbook 5500.3, as it may be amended or modified from time to time, which describes and provides instruction to the participants in the GNMA Mortgage- Backed Securities program. "GNMA Regulations" means the GNMA Regulations promulgated under the National Housing Act. "GNMA Security" or "GNMA Securities" means a fully modified pass through security in the form of a CLC or a PLC issued by an approved FHA lender and guaranteed by GNMA as to timely payment of principal of and interest on a PLC and as to timely payment of interest only until maturity and timely payment of principal at maturity on a CLC, pursuant to Section 306(g) of the National Housing Act of 1934, as amended, and the regulations promulgated thereunder. "Government" shall mean the government of the United States of America, the government of any other nation, any political subdivision of the United States of America or any other nation (including, without limitation, any state, territory, federal district, municipality or possession) and any department, agency or instrumentality thereof; and "Governmental" shall mean of, by, or pertaining to any Government. "HUD" means the United States Department of Housing and Urban Development. "HUD Funds " means, collectively (a) proceeds of the FHA Insured Mortgage Loan, which proceeds have been assigned by the Borrower to the Trustee pursuant to Section 3.5 of the Loan Agreement, and (b) proceeds, if any, received from the sale by the FHA Lender of GNMA Securities with respect to the FHA Insured Mortgage Loan. "HUD Regulatory Agreement" means the Regulatory Agreement dated as of [Dated Date] between the Borrower and HUD, related to the FHA Insured Mortgage Loan. "Holder," "Holders, " or "Holder of a Bond" means the Person in whose name a Bond is registered on the Register. "Indebtedness" shall mean for any Person (a) all indebtedness or other obligations of such Person for borrowed money or for the deferred purchase price of property or services, (b) all indebtedness or other obligations of any other Person for borrowed money or for the 2 deferred purchase price of property or services, the payment or collection of which such Person has guaranteed (except by reason of endorsement for deposit or collection in the ordinary course of business) or in respect of which such Person is liable, contingently or otherwise, including, without limitation, by way of agreement to purchase, to provide funds for payment, to supply funds to or otherwise to invest in such other Person, or otherwise to assure a creditor against loss, (c) all indebtedness or other obligations of any other Person for borrowed money or for the deferred purchase price of property or services secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien, upon or in property (including, without limitation, accounts and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of such indebtedness or other obligations, (d) all direct or contingent obligations of such Person in respect of letters of credit, (e) all lease obligations which have been or should be, in accordance with GAAP, capitalized on the books of such Person as lessee, and (f) guaranties of any of the foregoing, provided that Indebtedness does not include accounts payable and accrued expenses incurred in the ordinary course of business. "Indenture" means this Trust Indenture, dated as of July 1, 2014, between the Issuer and the Trustee, as amended or supplemented from time to time in accordance with Article VIII hereof. "Independent" when used with respect to a specified Person means such Person has no specific financial interest direct or indirect in the Borrower or any Affiliate of the Borrower and in the case of an individual is not a director, trustee, officer, partner or employee of the Borrower or any Affiliate of the Borrower and in the case of an entity, does not have a partner, director, trustee, officer, partner or employee who is a director, trustee, officer or employee of any partner of the Borrower or any Affiliate of the Borrower. "Information Services" means in accordance with then - current guidelines of the Securities and Exchange Commission, the Municipal Securities Rulemaking Board established pursuant to Section 1513(b)(1) of the Securities Exchange Act of 1934, or any successor entity or entities designated by the Securities and Exchange Commission. "Initial Deposit" means the deposit of Available Moneys in the amount of $ which the Borrower shall cause to be made from Available Moneys other than the proceeds of the Bonds to the Initial Deposit Account of the Bond Fund on the Closing Date. "Initial Deposit Account" means the Initial Deposit Account within the Bond Fund created in Section 5.01 hereof. "Interest Payment Date" means each 1 and 1, commencing _ 1, 20_, and on any date the Bonds are called for redemption prior to maturity. "Interest Rate" means % per annum. "Interest Rate for Advances" means the rate of percent per annum (__%) or the rate per annum which is two percent plus that interest rate announced by the Trustee in its 10 lending capacity as a bank as its "Prime Rate" or its "Base Rate," whichever is greater and lawfully chargeable, in whole or in part. "Investor Member" means [Limited Partner], [Limited Partner Org. Type], its permitted successors and assigns. "Issuer" means the City of Edina, Minnesota, a body corporate and politic of the State. "Issuer Revenues" means (a) the Loan Payments, (b) all other moneys received or to be received by the Issuer or the Trustee in respect of repayment of the Loan, including without limitation, all moneys and investments in the Bond Fund, (c) any moneys and investments in the Project Fund and the Collateral Fund, and (d) all income and profit from the investment of the foregoing moneys. The term "Issuer Revenues" does not include any moneys or investments in the Rebate Fund. "Lien" means any mortgage, deed of trust, lien, charge, security interest or encumbrance of any kind upon, or pledge of, any property, whether now owned or hereafter acquired, and includes the acquisition of, or agreement to acquire, any property subject to any conditional sale agreement or other title retention agreement, including a lease on terms tantamount thereto or on terms otherwise substantially equivalent to a purchase. "Loan" means the loan by the Issuer to the Borrower of a portion of the proceeds received from the sale of the Bonds. "Loan Agreement" means the Loan Agreement dated as of even date with this Indenture, between the Issuer and the Borrower and assigned by the Issuer, except for Unassigned Issuer's Rights, to the Trustee, as amended or supplemented from time to time. "Loan Payment Cure Period" means a period of four Business Days following any Loan Payment Date. "Loan Payment Date" means the fifth Business Day preceding each Bond Payment Date. "Loan Payments" means the amounts required to be paid by the Borrower in repayment of the Loan pursuant to the provisions of the Note and Section 4.1 of the Loan Agreement. "Majority of the Holders of the Bonds" means Holders of more than fifty percent (50 %) of the principal amount of the then Outstanding Bonds. "Maturity Dates" means "Minimum Trustee Rating" means a long term rating of the Trustee's unsecured obligations with maturities in excess of one year of not less than "A" by S &P, or, if the Trustee does not have such a rating from S &P, it must have a minimum rating of its unsecured obligations with maturities of one year or less of "A -1" from S &P. 11 "Note" means the Series 2014A Promissory Note in the original principal amount of $ , dated as of the Closing Date, in the form attached to the Loan Agreement as Exhibit A, evidencing the obligation of the Borrower to make Loan Payments. "Notice Address" means: To the Issuer: City of Edina, Minnesota 4801 W. 50th St. Edina, Minnesota 55424 Attention: City Manager To the Trustee: U.S. Bank National Association St. Paul, Minnesota Attention: To the Borrower: Yorktown Continental, LP Attention: With a copy to: Winthrop & Weinstine 225 South Sixth Street, Suite 3500 Minneapolis, Minnesota 55402 Attention: Norm Jones To the Rating Agency: Standard & Poor's Rating Services 55 Water Street, 38th Floor New York, NY 10041 Attention: Public Finance Surveillance Group Email: pubfin structured (a�standardandpoors.com If to Investor Member: With a copy to: [Limited Partner] Attention: [Limited Partner's Counsel] Attention: or such additional or different address, notice of which is given under Section 13.03 hereof. "Opinion of Bond Counsel" means an opinion of Bond Counsel. 12 "Ordinary Services" and "Ordinary Expenses" mean those services normally rendered, and those expenses normally incurred, by a trustee under instruments similar to this Indenture. Without limiting the generality of this definition, Ordinary Services and Ordinary Expenses shall include, without limitation, services provided by the Trustee in connection with the redemption of Bonds as provided in Article IV of this Indenture and in connection with any meetings of Holders of the Bonds as provided in Article XII of this Indenture. "Outstanding Bonds," "Bonds outstanding" or "outstanding" as applied to Bonds mean, as of the applicable date, all Bonds which have been authenticated and delivered, or which are being delivered by the Trustee under this Indenture, except: (a) Bonds cancelled upon surrender, exchange or transfer, or cancelled because of payment on or prior to that date; (b) Bonds, or the portion thereof, for the payment or purchase for cancellation of which sufficient money has been deposited and credited with the Trustee or the Paying Agents on or prior to that date for that purpose (whether upon or prior to the maturity of those Bonds); (c) Bonds, or the portion thereof, which are deemed to have been paid and discharged or caused to have been paid and discharged pursuant to the provisions of this Indenture; and (d) Bonds in lieu of which others have been authenticated under Section 3.06 of this Indenture. "Paying Agent" means the Trustee acting as such, or any other bank or trust company designated as a Paying Agent by or in accordance with this Indenture. "Person" or words importing persons mean firms, associations, partnerships (including without limitation, general and limited partnerships), joint ventures, societies, estates, trusts, corporations, limited liability companies, public or governmental bodies, other legal entities and natural persons. "Plans and Specifications" means the plans and specifications describing the Project as now prepared and as they may be changed as herein provided from time to time. "Predecessor Bond" of any particular Bond means every previous Bond evidencing all or a portion of the same debt as that evidenced by the particular Bond. For the purposes of this definition, any Bond authenticated and delivered under Section 3.06 of this Indenture in lieu of a lost, stolen or destroyed Bond shall, except as otherwise provided in Section 3.06, be deemed to evidence the same debt as the lost, stolen or destroyed Bond. "Project" means the acquisition, rehabilitation and equipping of an existing 264 -unit building containing 262 one - bedroom units and two two- bedroom units as a senior low income housing project located at 7151 York Avenue South in Edina, Minnesota. 13 "Project Costs" means the costs of the Project specified in Section 3.4 of the Loan Agreement. "Project Fund" means the Project Fund created in Section 5.01 of this Indenture. "Project Purposes" means the operation of the Project in accordance with the Act, the Code and the Regulatory Agreement. "Qualified Project Costs " means "Rating Agency" means Standard & Poor's Ratings Services ( "S &P "), Moody's Investors Service, Inc. ( "Moody's ") or any other nationally recognized municipal securities rating agency acceptable to the Holders and the Trustee. "Rebate Fund" means the Rebate Fund created in Section 5.01 of this Indenture. "Register" means the books kept and maintained by the Registrar for registration and transfer of Bonds pursuant to Section 3.05 hereof. "Registrar" means the Trustee, until a successor Registrar shall have become such pursuant to applicable provisions of this Indenture; each Registrar shall be a transfer agent registered in accordance with Section 17A(c) of the Securities Exchange Act of 1934. "Regular Record Date" means, the fifteenth day of the calendar month next preceding an Interest Payment Date applicable to that Bond. "Regulatory Agreement" means the Regulatory Agreement, dated as of even date with this Indenture, among the Issuer, the Trustee and the Borrower. "Securities Act" means the United States Securities Act of 1933, as in effect on the Closing Date. "Securities Depositories" means The Depository Trust Company, 711 Stewart Avenue, Garden City, New York 11530, Fax (516) 227 4039 or 4191; Midwest Securities Trust Company, Capital Structures — Call Notification, 440 South LaSalle Street, Chicago, Illinois 60605, Fax (312) 663 2343; Pacific Securities Depository Trust Company, Pacific and Company, P.O. Box 7041, San Francisco, California 94120, Fax (415) 393 4128; Philadelphia Depository Trust Company, Reorganization Division, 1900 Market Street, Philadelphia, Pennsylvania 19103, Attention: Bond Department, Fax (215) 496 5058; or, in accordance with the then current guidelines of the Securities and Exchange Commission to such other addresses and /or such other securities depositories or, as the Issuer may designate in a request of the Issuer delivered to the Trustee, to no such depositories. "S &P" means Standard & Poor's Ratings Services. "Special Funds" means, collectively, the Bond Fund, the Collateral Fund and the Project Fund, and any accounts therein, all as created in this Indenture. 14 "Special Record Date" means, with respect to any Bond, the date established by the Trustee in connection with the payment of overdue interest or principal on that Bond. "State" means the State of Minnesota. [ "Subordinate Lender" means or any of its Affiliates.] [ "Subordinate Loan" means a loan by the Subordinate Lender in an original principal amount equal to the amount of the Initial Deposit.] "Supplemental Indenture" means any indenture supplemental to this Indenture entered into between the Issuer and the Trustee in accordance with Article VIII hereof. "Tax Agreement" means the [Company Tax Certificate dated as of the Closing Date]. "Trustee" means [U.S. Bank National Association], until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter, "Trustee" shall mean the successor Trustee. "Unassigned Issuer's Rights" means all of the rights of the Issuer to receive Additional Payments under Section 4.2 of the Loan Agreement, to be held harmless and indemnified under Section 5.3 of the Loan Agreement, to be an insured under Section 5.5 of the Loan Agreement, to be reimbursed for attorney's fees and expenses under Section 7.4 of the Loan Agreement, to receive notices pursuant to Section 8.3 of the Loan Agreement and to give or withhold consent to amendments, changes, modifications, alterations and termination of the Loan Agreement under Section 8.6 of the Loan Agreement. "Underwriter" means Dougherty & Company LLC. Section 1.02 Interpretation Any reference herein to the Issuer, to the governing body of the Issuer or to any member or officer of either includes entities or officials succeeding to their respective functions, duties or responsibilities pursuant to or by operation of law or lawfully performing their functions. Any reference to a section or provision of the Constitution of the State or the Act, or to a section, provision or chapter of the Minnesota Statutes, or to any statute of the United States of America, includes that section, provision or chapter as amended, modified, revised, supplemented or superseded from time to time, provided that no amendment, modification, revision, supplement or superseding section, provision or chapter shall be applicable solely by reason of this paragraph, if it constitutes in any way an impairment of the rights or obligations of the Issuer, the Holders, the Trustee, the Registrar, the Paying Agent, any Authenticating Agent or the Borrower under this Indenture, the Bond Resolution, the Bonds, the Loan Agreement, the Note, the Regulatory Agreement or any other instrument or document entered into in connection with any of the foregoing, including without limitation, any alteration of the obligation to pay Bond Debt Service Charges in the amount and manner, at the times, and from the sources provided in the Bond Resolution and this Indenture, except as permitted herein. 15 Unless the context indicates otherwise, words importing the singular number include the plural number, and vice versa. The terms "hereof," "hereby," "herein," "hereto," "hereunder," "hereinafter" and similar terms refer to this Indenture; and the term "hereafter" means after, and the term "heretofore" means before, the date of this Indenture. Words of any gender include the correlative words of the other genders, unless the sense indicates otherwise. Section 1.03 Captions and Headings The captions and headings in this Indenture are solely for convenience of reference and in no way define, limit or describe the scope or intent of any Articles, Sections, subsections, paragraphs, subparagraphs or clauses hereof. END OF ARTICLE I 16 ARTICLE II AUTHORIZATION AND TERMS OF BONDS Section 2.01 Authorized Amount of Bonds No Bonds may be issued under the provisions of this Indenture except in accordance with this Article. The total authorized principal amount of Bonds which shall be issued under the provisions of this Indenture is $ Section 2.02 Issuance of Bonds It is determined to be necessary to, and the Issuer shall, issue, sell and deliver $ principal amount of Bonds and shall loan the proceeds thereof to the Borrower to finance the Project. The Bonds shall be designated "Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014A." The Bonds shall be issuable only in fully registered form, substantially as set forth in Exhibit A to this Indenture, and shall be numbered in such manner as determined by the Trustee in order to distinguish each Bond from any other Bond; shall be in Authorized Denominations; shall be dated the Closing Date; and shall bear interest from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid or duly provided for, from their date of delivery. The Bonds shall mature on their respective Maturity Dates and shall bear interest from their dates on the principal amount outstanding at their respective Interest Rates, payable on each Interest Payment Date, calculated on the basis of a 360 -day year consisting of twelve 30 -day months. Section 2.03 Authorization of Bonds; Sale and Delivery of the Bonds Upon the execution and delivery hereof, the Issuer shall execute the Bonds and deliver them to the Trustee, and the Trustee shall authenticate or cause the authentication of the Bonds and deliver them to such purchaser or purchasers as shall be directed by the Issuer, provided, that there shall be previous thereto or simultaneous therewith filed with the Trustee the following: (a) copies, certified by the City Clerk of the Issuer, of all resolutions adopted and proceedings had by the Issuer authorizing the issuance and delivery of the Bonds, including the Bond Resolution; (b) a letter of instructions of the Issuer directing the Trustee to authenticate and deliver the Bonds against receipt of the purchase price therefor, (c) original executed counterparts of this Indenture, the Loan Agreement, the Regulatory Agreement and the Note; (d) an approving opinion of Bond Counsel in form and content acceptable to the Issuer and the Underwriter; 17 (e) an opinion of counsel for the Borrower in form and content acceptable to the Issuer, Bond Counsel and the Underwriter; (f) an executed Tax Agreement; and (g) payment to the Trustee, for the account of the Issuer, of the purchase price for the Bonds of $ (h) payment to the Trustee, for the account of the Issuer, of the Initial Deposit. Section 2.04 Special Obligations The Bonds are special obligations of the Issuer payable solely from the Trust Estate and any other revenues, funds and assets pledged under this Indenture and not from any other revenues, funds or assets of the Issuer. The Bonds are not general obligations, debt or bonded indebtedness of the Issuer or of the State or any political subdivision thereof (other than of the Issuer to the limited extent set forth in this Indenture) and the Holders of the Bonds do not have the right to have any excises or taxes levied by the Issuer or by the State or any political subdivision thereof for the payment of the principal of and any premium and interest on the Bonds. Neither the Issuer nor the State nor any political subdivision of the State will be obligated to pay the principal of and the interest on the Bonds or other costs incident thereto except from the Issuer Revenues pledged under this Indenture. END OF ARTICLE II 18 ARTICLE III TERMS OF BONDS GENERALLY Section 3.01 Form of Bonds The Bonds, the certificate of authentication and the form of assignment shall be in the form thereof set forth in Exhibit A to this Indenture. All Bonds, unless a Supplemental Indenture shall have been executed and delivered pursuant to Section 8.02 hereof, shall be in fully registered form, and, except as provided in Section 3.05 hereof, the Holder of a Bond shall be regarded as the absolute owner thereof for all purposes of this Indenture. The Bonds shall be negotiable instruments in accordance with the Act, and shall express the purpose for which they are issued and any other statements or legends which may be required by law. Each Bond shall be of a single maturity, unless the Trustee shall approve the authentication and delivery of a Bond of more than one maturity. Section 3.02 Execution and Authentication of Bonds Each Bond shall be signed by the Mayor and City Manager in their official capacities (provided that any or all of those signatures may be facsimiles). In case any officer whose signature or a facsimile of whose signature shall appear on any Bond shall cease to be that officer before the issuance of the Bond, his signature or the facsimile thereof nevertheless shall be valid and sufficient for all purposes, the same as if he had remained in office until that time. Any Bond may be executed on behalf of the Issuer by an officer who, on the date of execution is the proper officer, although on the date of the Bond that person was not the proper officer. No Bond shall be valid or become obligatory for any purpose or shall be entitled to any security or benefit under this Indenture unless and until a certificate of authentication, substantially in the form set forth in Exhibit A to this Indenture, has been signed by the Trustee. The authentication by the Trustee upon any Bond shall be conclusive evidence that the Bond so authenticated has been duly authenticated and delivered hereunder and is entitled to the security and benefit of this Indenture. The certificate of the Trustee may be executed by any person authorized by the Trustee, but it shall not be necessary that the same authorized person sign the certificates of authentication on all of the Bonds. Section 3.03 Source of Payment of Bonds To the extent provided in and except as otherwise permitted by this Indenture, (i) the Bonds shall be special limited obligations of the Issuer and the Bond Debt Service Charges thereon shall be payable equally and ratably solely from the Issuer Revenues, including but not limited to moneys and investments in the Special Funds, (ii) the payment of Bond Debt Service Charges on the Bonds shall be secured by the assignment of Issuer Revenues hereunder and by this Indenture, and (iii) payments due on the Bonds also shall be secured by the Note. Notwithstanding anything to the contrary in the Bond Resolution, the Bonds or this Indenture, the Bonds do not and shall not represent or constitute a debt or pledge of the faith and credit or 19 the taxing power of the Issuer or of the State or of any political subdivision, municipality or other local agency thereof. Section 3.04 Payment and Ownership of Bonds Bond Debt Service Charges shall be payable in lawful money of the United States of America without deduction for the services of the Trustee or the Paying Agent. Subject to the provisions of Section 3.09 hereof, (i) the principal of any Bond shall be payable when due to a Holder upon presentation and surrender of such Bond at the designated corporate trust office of the Trustee or at the office, designated by the Trustee, of the Paying Agent, and (ii) interest on any Bond shall be paid on the applicable Interest Payment Date by check or draft which the Trustee shall cause to be mailed on that date to the Person in whose name the Bond is registered on the Register at the close of business on the Regular Record Date applicable to that Interest Payment Date, at such Holder's address appearing therein. If and to the extent, however, that the Issuer shall fail to make payment or provision for payment of interest on any Bond on any Interest Payment Date, that interest shall cease to be payable to the Person who was the Holder of that Bond as of the applicable Regular Record Date. In that event, except as provided below in this Section, when moneys become available for payment of the interest, (x) the Trustee shall, pursuant to Section 7.06(d), establish a Special Record Date for the payment of that interest which shall be not more than 15 nor fewer than 10 days prior to the date of the proposed payment, and (y) the Trustee shall cause notice of the proposed payment and of the Special Record Date to be mailed by first -class mail, postage prepaid, to each Holder at its address as it appears on the Register not fewer than 10 days prior to the Special Record Date and, thereafter, the interest shall be payable to the Persons who are the Holders of the Bonds at the close of business on the Special Record Date. Subject to the foregoing, each Bond delivered under this Indenture upon transfer thereof, or in exchange for or in replacement of any other Bond, shall carry the rights to interest accrued and unpaid, and to accrue on that Bond, or which were carried by that Bond. Except as provided in this Section and the first paragraph of Section 3.06 hereof, (i) the Holder of any Bond shall be deemed and regarded as the absolute owner thereof for all purposes of this Indenture, (ii) payment of or on account of the Bond Debt Service Charges on any Bond shall be made only to or upon the order of that Holder or its duly authorized attorney in the manner permitted by this Indenture, and (iii) none of the Issuer, the Trustee, the Registrar nor the Paying Agent shall, to the extent permitted by law, be affected by notice to the contrary. All of those payments shall be valid and effective to satisfy and discharge the liability upon that Bond, including without limitation, the interest thereon, to the extent of the amount or amounts so paid. Section 3.05 Registration, Transfer and Exchange of Bonds The Trustee shall cause the Bond Register to be kept for the registration of Bonds and the registration of transfers of Bonds. The registration of any Bond may be transferred only upon an assignment duly executed by the registered holder or his duly authorized representative in such form as shall be satisfactory to the Trustee, and upon surrender of such Bond to the Trustee for cancellation. Whenever any Bond or Bonds shall be surrendered for registration of transfer, the 20 Issuer shall execute and the Trustee shall authenticate and deliver to the transferee a new Bond or Bonds of Authorized Denomination or Denominations and for the amount of such Bond or Bonds so surrendered. Any Bond may be exchanged at the designated office of the Trustee, for a new Bond or Bonds of an Authorized Denomination and for the aggregate amount of such Bond then remaining Outstanding. In all cases in which the registration of Bonds shall be transferred or Bonds shall be exchanged hereunder, the Trustee may make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange, and all such taxes, fees or charges shall be Ordinary Expenses payable as scheduled pursuant to Section 6.03 hereof. The Trustee shall not be required to transfer or exchange any Bond after notice calling such Bond for redemption has been mailed. The person in whose name any Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal of and premium and interest on any such Bond shall be made only to or upon the order of the holder thereof, or its legal representative, and neither the Issuer nor the Trustee shall be affected by any notice to the contrary. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums to be paid. Section 3.06 Mutilated, Lost, Wronefully Taken or Destroyed Bonds If any Bond is mutilated, lost, wrongfully taken or destroyed, in the absence of written notice to the Issuer or the Registrar that a lost, wrongfully taken or destroyed Bond has been acquired by a bona fide purchaser, the Issuer shall execute, and the Registrar shall authenticate and deliver, a new Bond of like date, maturity and denomination as the Bond mutilated, lost, wrongfully taken or destroyed, provided that (a) in the case of any mutilated Bond, the mutilated Bond first shall be surrendered to the Registrar, and (b) in the case of any lost, wrongfully taken or destroyed Bond, there first shall be furnished to the Registrar evidence of the loss, wrongful taking or destruction satisfactory to the Registrar, together with indemnity satisfactory to the Registrar for the Trustee, the Registrar and the Issuer. If any lost, wrongfully taken or destroyed Bond shall have matured, instead of issuing a new Bond, the Trustee may pay that Bond without surrender thereof upon the furnishing of satisfactory evidence and indemnity as the Registrar may require, as in the case of issuance of a new Bond. The Issuer, the Registrar and the Trustee may charge the Holder of a mutilated, lost, wrongfully taken or destroyed Bond their reasonable fees and expenses in connection with their actions pursuant to this Section. Every new Bond issued pursuant to this Section by reason of any Bond being mutilated, lost, wrongfully taken or destroyed (i) shall constitute, to the extent of the outstanding principal amount of the Bond lost, mutilated, taken or destroyed, an additional contractual obligation of the Issuer, regardless of whether the mutilated, lost, wrongfully taken or destroyed Bond shall be enforceable at any time by anyone and (ii) shall be entitled to all of the benefits of this Indenture equally and proportionately with any and all other Bonds issued and outstanding hereunder. 21 All Bonds shall be held and owned on the express condition that the foregoing provisions of this Section are exclusive with respect to the replacement or payment of mutilated, lost, wrongfully taken or destroyed Bonds and, to the extent permitted by law, shall preclude any and all other rights and remedies with respect to the replacement or payment of negotiable instruments or other investment securities without their surrender, notwithstanding any law or statute to the contrary now existing or enacted hereafter. Section 3.07 Cancellation of Bonds Any Bond surrendered pursuant to this Article for the purpose of payment or retirement or for exchange, replacement or transfer shall be cancelled upon presentation and surrender thereof to the Registrar, the Trustee or the Paying Agent. Any Bond cancelled by the Trustee or the Paying Agent shall be transmitted promptly to the Registrar by the Trustee or Paying Agent. The Issuer, or the Borrower on behalf of the Issuer, may deliver at any time to the Registrar for cancellation any Bonds previously authenticated and delivered hereunder, which the Issuer or the Borrower may have acquired in any manner whatsoever. All Bonds so delivered shall be cancelled promptly by the Registrar. Certification of the surrender and cancellation shall be made to the Issuer and the Trustee by the Registrar upon written request to the Registrar. Unless otherwise directed by the Issuer, cancelled Bonds shall be retained and stored by the Registrar for a period of two years after their cancellation. Those cancelled Bonds shall be destroyed by the Registrar by shredding or incineration at that time or at any earlier time directed by the Issuer. The Registrar shall provide certificates describing the destruction of cancelled Bonds to the Issuer and the Trustee upon written request to the Registrar. The costs of such storage, shredding, incineration and certification shall constitute Ordinary Expenses payable as scheduled pursuant to Section 6.03 hereof. Section 3.08 Special Agreement with Holders Notwithstanding any provision of this Indenture or of any Bond to the contrary, with the written approval of the Borrower, the Trustee may enter into an agreement with any Holder providing for making all payments to that Holder of principal of and interest on that Bond or any part thereof (other than any payment of the entire unpaid principal amount thereof) at a place and in a manner other than as provided in this Indenture and in the Bond, without presentation or surrender of the Bond, upon any conditions which shall be satisfactory to the Trustee and the Borrower, provided that payment in any event shall be made to the Person in whose name a Bond shall be registered on the Register, with respect to payment of principal, on the date such principal is due, and, with respect to the payment of interest, as of the applicable Regular Record Date or Special Record Date, as the case may be. The Trustee will furnish a copy of each of those agreements, certified to be correct by an officer of the Trustee, to the Registrar, the Issuer and the Borrower. Any payment of principal or interest pursuant to such an agreement shall constitute payment thereof pursuant to, and for all purposes of, this Indenture. Section 3.09 Book -Entry Only System 22 Notwithstanding any provision of this Indenture to the contrary, the Issuer may direct that all Bonds issued hereunder shall be initially issued in a Book Entry System, registered in the name of a Depository or its nominee as registered owner of the Bonds, and held in the custody of that Depository. Unless otherwise requested by a Depository, a single certificate will be issued and delivered to the Depository for each maturity of Bonds. Beneficial owners of Bonds in a Book Entry System will not receive physical delivery of Bond certificates except as provided hereinafter. For so long as a Depository shall continue to serve as securities depository for the Bonds as provided herein, all transfers of beneficial ownership interests will be made by book - entry only, and no investor or other party purchasing, selling or otherwise transferring beneficial ownership of Bonds is to receive, hold or deliver any Bond certificate, provided that if a Depository fails or refuses to act as securities depository for the Bonds, the Issuer shall take the actions necessary to provide for the issuance of Bond certificates to the Holders of such Bonds. With respect to Bonds registered in the name of a Depository, the Issuer, the Borrower and the Trustee shall have no responsibility or obligation to any participant therein or to any Person on whose behalf any participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, neither the Issuer, the Borrower nor the Trustee shall have any responsibility or obligation with respect to (i) the accuracy of the records of the Depository or any participant therein or any other Person, other than a registered owner of the Bonds, as shown on the registration books, or (ii) any notice with respect to the Bonds or (iii) the payment to any participant in the Depository or any other Person, other than a registered owner of the Bonds, as shown in the registration books, of any amount with respect to principal of or interest on or purchase price of the Bonds. Replacement Bonds may be issued directly to beneficial owners of Bonds other than a Depository, or its nominee, but only in the event that (i) the Depository determines not to continue to act as securities depository for the Bonds (which determination shall become effective no less than 90 days after written notice to such effect to the Issuer and the Trustee); or (ii) the Issuer has advised a Depository of its determination (which determination is conclusive as to the Depository and beneficial owners of the Bonds) that the Depository is incapable of discharging its duties as securities depository for the Bonds; or (iii) the Issuer has determined (which determination is conclusive as to the Depository and the beneficial owners of the Bonds) that the interests of the beneficial owners of the Bonds might be adversely affected if such book - entry only system of transfer is continued. Upon occurrence of any of the foregoing events, the Issuer and the Borrower shall use commercially reasonable efforts to attempt to locate another qualified securities depository. If the Issuer and the Borrower fail to locate another qualified securities depository to replace the Depository, the Issuer and the Borrower, at the Borrower's expense, shall cause to be authenticated and delivered replacement Bonds, in certificate form, to the beneficial owners of the Bonds. In the event that the Issuer makes the determination noted in (ii) or (iii) above (provided that the Issuer undertakes no obligation to make any investigation to determine the occurrence of any events that would permit the Issuer to make any such determination), and has made provisions to notify the beneficial owners of Bonds of such determination by mailing an appropriate notice to the Depository, it and the Borrower shall cause to be issued replacement Bonds in certificate form to beneficial owners of the Bonds as shown on the records of the Depository provided to the Issuer. 23 Upon the written consent of one hundred percent (100 %) of the beneficial owners of the Bonds, the Trustee shall withdraw the Bonds from any Depository and authenticate and deliver Bonds fully registered to the assignees of that Depository or its nominee. If the request for such withdrawal is not the result of any Issuer action or inaction, such withdrawal, authentication and delivery shall be at the cost and expense (including costs of printing, preparing and delivering such Bonds) of the persons requesting such withdrawal, authentication and delivery; otherwise such withdrawal, authentication and delivery shall be at the cost and expense of the Borrower. Whenever, during the term of the Bonds, the beneficial ownership thereof is determined by a book entry at a Depository, (i) the requirements in this Indenture of holding, delivering or transferring Bonds shall be deemed modified to require the appropriate Person or entity to meet the requirements of the Depository as to registering or transferring the book entry to produce the same effect and (ii) delivery of the Bonds will be in accordance with arrangements among the Issuer, the Trustee and the Depository notwithstanding any provision of this Indenture to the contrary. The Trustee and the Issuer shall enter into any letter of representation with a Depository to implement the Book Entry System of bond registration described above. END OF ARTICLE III 24 ARTICLE IV REDEMPTION OF BONDS Section 4.01 Redemption of Bonds The Bonds are subject to redemption prior to maturity as provided in this section. For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Bonds shall relate, in the case of any Bond redeemed or to be redeemed only in part, to the portion of the principal of such Bond that has been or is to be redeemed, provided, however, that Bonds shall be redeemed in part only in such amounts that the Bonds remaining outstanding after a redemption shall in all events be in Authorized Denominations. On each redemption date the Trustee shall transfer to the Registrar, but only from and to the extent of funds held by the Trustee hereunder available for such purpose, an amount sufficient to pay the redemption price of all Bonds or portions thereof to be redeemed on such redemption date. The Bonds shall be redeemed, in whole or in part, at a price equal to the principal amount thereof plus accrued interest to the date fixed for redemption, on any Business Day on and after in the event the Borrower exercises any option to prepay the Note and amounts are paid from the proceeds of refunding bonds or otherwise from Available Moneys upon the written direction of the Borrower delivered to the Issuer and the Trustee. Section 4.02 Notice of Redemption (a) Not less than 30 days prior to the redemption date, the Trustee shall give written notice of redemption to the Holders (with a copy to the Borrower and the Investor Member) by first class mail, postage prepaid, at their respective addresses appearing on the Bond Register. The notice shall state: (1) the redemption date; (2) the redemption price; (3) if less than all Outstanding Bonds are to be redeemed, the identification by designation, letters, numbers or other distinguishing marks (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed; (4) that on the redemption date the redemption price of each such Bond will become due and payable to the extent of funds on deposit with the Trustee for that purpose, and that interest on the principal amount of each such Bond to be redeemed shall cease to accrue on such date; 25 (5) the place where such Bonds are to be surrendered for payment of the redemption price, which place of payment shall be the office of the Trustee designated in such notice; and (6) such additional information as the Trustee or the Issuer shall deem appropriate. (b) In addition to the foregoing notice, further notice shall be given by the Trustee as set out below, but no defect in such further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if notice thereof is given as above prescribed. Each further notice of redemption given hereunder shall contain the information required above for an official notice of redemption and in addition (i) the complete official title, including series designation, delivery date, interest rate and maturity date of each Bond being redeemed, (ii) the certificate and CUSIP number of each such Bond, and, in the case of a partial redemption, the amount of the principal represented by each such certificate that is being redeemed, (iii) the date of mailing of official notice of redemption, and (iv) any other descriptive information needed to identify accurately the Bonds being redeemed. Further notices of redemption shall be sent by first class mail. (c) Further notices of redemption shall be sent by first -class mail or overnight delivery service to any Holder owning, on the date such notice is sent, Bonds in the aggregate principal amount of $1,000,000 or more. (d) If the Bonds are not then being held under a book entry system, each further notice of redemption shall be sent at least 30 days before the redemption date by first class mail or overnight delivery service to the Securities Depositories and to the Information Services. This further notice of redemption sent to the Securities Depositories pursuant to the preceding sentence shall be sent at such time as shall insure that such notice is received at least two Business Days before official notice of such redemption is received. (e) A second notice of redemption shall be sent by the same means as the first such notice not later than 60 days after the redemption date to any Holder who shall not have presented for payment the Bond or Bonds called for redemption within 30 days after such date. (f) In the event the Bonds are called for redemption under circumstances resulting in discharge of this Indenture under Section 9.02 hereof more than 90 days before the redemption date, additional official and further notice of redemption satisfying the requirements of this Section shall be given not less than 30 nor more than 60 days prior to such redemption date. (g) Failure to give any official or further notice or any defect therein shall not affect the validity of the proceedings for redemption of any Bond with respect to which no such failure or defect has occurred or exists. Any notice of the redemption of Bonds may state that such notice is conditional and that if the conditions for redemption of such Bonds on the scheduled redemption date are not satisfied (including the availability of funds sufficient to redeem such Bonds), such Bonds will not be redeemed on such date and any Bonds tendered for payment on such date will be returned to the Holders thereof. 26 Notice of redemption having been given as aforesaid, except as provided below, the principal amount of the Bonds so to be redeemed shall become due and payable on the redemption date at the redemption price specified, and on and after such date (unless the Issuer shall default in the payment of the redemption price) such principal amount of the Bonds shall cease to bear interest. Upon surrender of any such Bond for redemption in accordance with such notice, such Bond shall be paid at the redemption price thereof to the extent that money is on deposit with the Registrar for that purpose. Neither the failure of a Holder to receive such notice nor any defect in any notice shall affect the sufficiency of the proceedings for such redemption. If any Bond called for redemption shall not be so paid on the redemption date upon proper surrender of the Bond for redemption, the redemption price and, to the extent lawful, interest thereon shall, until paid, bear interest from the redemption date at the rate borne by the Bond immediately before the redemption date. If any Bond is to be redeemed only in part, it shall be surrendered to the Registrar (with, if the Registrar so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Registrar duly executed by, the Holder thereof or its attorney duly authorized in writing) and the appropriate officers of the Issuer shall execute and the Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same interest rate and of any Authorized Denomination or Authorized Denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond surrendered. END OF ARTICLE IV 27 ARTICLE V PROVISIONS AS TO FUNDS, PAYMENTS, PROJECT AND AGREEMENT Section 5.01 Creation of Funds; Allocation of Bond Proceeds (a) The funds and accounts described in this Section, designated as indicated are created by this Section 5.01 in this Indenture. Each fund is to be maintained in the custody of the Trustee as a separate bank account (except when invested in Eligible Investments). The funds and accounts are: (1) the Bond Fund designated "Bond Fund," and the "Initial Deposit Account" therein; (2) the Project Fund designated the "Project Fund "; (3) the Collateral Fund designated "Collateral Fund "; (4) the Costs of Issuance Fund; and (5) the Rebate Fund designated "Rebate Fund." (b) The proceeds of the sale of the Bonds (including without limitation, premium, if any, and interest accrued thereon) in the amount of $ shall be deposited by the Trustee on the Closing Date to the Project Fund. [On the Closing Date, the Trustee shall deposit $ received by or on behalf of the Borrower, from money other than the proceeds of the Bonds, in the Costs of Issuance Fund.] In addition, the Trustee shall cause the Initial Deposit to be deposited by the provider thereof to the Initial Deposit Account of the Bond Fund. Section 5.02 Application of Loan Payments So long as there are any Outstanding Bonds, any payments made by the Borrower pursuant to the Note and the Loan Agreement shall be paid on each Loan Payment Date directly to the Trustee and deposited into the Bond Fund, to be used to pay the interest and principal (if any) on the Bonds on the next succeeding Interest Payment Date, provided that so long as there are amounts available therefor, for purposes of paying interest on the Loan when due the Trustee shall debit the Initial Deposit Account in the amount of interest due on the Bonds on each Interest Payment Date and transfer the same to the Bond Fund to pay interest due on the Bonds on each Interest Payment Date, and provided further that so long as there are amounts available therefor, for purposes of making principal payments on the Loan when due the Trustee shall debit the Collateral Fund and transfer the same to the Bond Fund to pay the principal of the Bonds on the date set for redemption of the Bonds or payment of the Bonds on the Maturity Date. 28 Section 5.03 Disbursements from the Proiect Fund (a) Requisitions. Subject to the provisions of this Section 5.03(a) and Section 5.03(b) below, the Trustee shall make disbursements from the Project Fund to pay Project Costs only upon the receipt of a written request of the Borrower signed by an Authorized Borrower Representative, which request shall be in the form attached as Exhibit B to the Loan Agreement (a "Disbursement Request "). (b) Project Fund. When the Trustee receives a Disbursement Request for a disbursement from the Project Fund in accordance with the provisions of Section 5.03(a) above and Sections 3.4 and 3.5 of the Loan Agreement, subject to the following paragraph, the Trustee shall confirm that Available Moneys equal to or greater than the sum of (a) the amount set forth in the Disbursement Request and (b) all prior disbursements made, are on deposit in the Collateral Fund. Upon confirmation of the items above, the Trustee shall thereafter disburse the funds from the Project Fund to pay Project Costs in the amount pursuant to the Disbursement Request. Any interest earnings on the Project Fund shall be credited to the Bond Fund. No proceeds of the Bonds may be disbursed for costs paid by the Borrower prior to the date of issuance of the Bonds. There shall be deposited from time to time in the Collateral Fund Available Moneys in such amounts and at such times as may be necessary to allow the Trustee to disburse funds from the Project Fund, pursuant to Section 5.03 hereof, upon the Trustee's receipt of a Disbursement Request from the Borrower to pay Project Costs. (c) Records. The Trustee shall cause to be kept and maintained adequate records pertaining to the Project Fund and all disbursements therefrom as herein provided. If requested by the Issuer or the Borrower, or the Investor Member, the Trustee shall file copies of the records pertaining to the Project Fund and disbursements therefrom with the Issuer and the Borrower and the Investor Member. The proceeds of the Bonds shall be used exclusively to pay costs that (i) are (A) capital expenditures (as defined in Section 1.150 -1(a) of the Code's regulations) and (B) not made for the acquisition of existing property, to the extent prohibited in Section 147(d) of the Code, and (ii) are made exclusively with respect to a "qualified residential rental project" within the meaning of Section 142(d) of the Code so that the Project and the land on which it is located will have been financed fifty percent (50 %) or more by the proceeds of the Bonds for the purpose of complying with Section 42(h)(4)(B) of the Code, provided, however, the foregoing representation, covenant and warranty is made for the benefit of the Borrower and its partners and neither the Trustee nor the Issuer shall have any obligation to enforce this covenant nor shall they incur any liability to any person, including without limitation, the Borrower, the partners of the Borrower, any other affiliate of the Borrower or the holders of the Bonds for any failure to meet the intent expressed in the foregoing representation, covenant and warranty, and provided further that failure to comply with this representation, covenant and warranty shall not constitute a default or Event of Default under this Indenture. Upon the occurrence and continuance of an Event of Default hereunder because of which the principal amount of the Bonds has been declared to be due and immediately payable pursuant 29 to Section 7.03 hereof, any moneys remaining in the Project Fund shall be promptly transferred by the Trustee to the Bond Fund. Section 5.04 Bond Fund There shall be deposited in the Bond Fund (1) the amounts set forth in Section 5.01, if any, (2) interest earnings on the Project Fund and the Collateral Fund and (3) amounts set forth under this Section 5.04. The Bond Fund (and the Initial Deposit Account therein) and the moneys and Eligible Investments therein shall be used solely and exclusively for the payment of Bond Debt Service Charges as they become due and at stated maturity, or upon redemption or acceleration, all as provided herein and in the Loan Agreement. The Trustee shall transmit to the Paying Agent, as appropriate, from moneys on deposit in the Bond Fund, amounts sufficient to make timely payments of Bond Debt Service Charges on the Bonds. To the extent that the amount needed by the Paying Agent is not sufficiently predictable, the Trustee may make any credit arrangements with the Paying Agent which will permit those payments to be made. The Issuer authorizes and directs the Trustee to cause withdrawal of moneys from the Bond Fund which are available for the purpose of paying, and are sufficient to pay, Bond Debt Service Charges on the Bonds as they become due and payable, for the purposes of paying or transferring moneys to the Paying Agent which are necessary to pay such Bond Debt Service Charges. Amounts credited to or on deposit in the Initial Deposit Account shall be transferred to the Bond Fund on each Loan Payment Date in order to provide for the payment of Bond Debt Service Charges on the next succeeding Bond Payment Date. In the event that amounts on deposit in the Bond Fund on any Loan Payment Date are insufficient to make the payment of Bond Debt Service Charges due on the next succeeding Bond Payment Date, the Trustee shall transfer funds in the following order to the Bond Fund and use such funds, together with amounts then on deposit in the Bond Fund, to pay the Bond Debt Service Charges due on the next succeeding Bond Payment Date: (1) first, from amounts on deposit in the Initial Deposit Account of the Bond Fund; (2) second, from amounts on deposit in the Collateral Fund; and (3) third, from amounts on deposit in the Project Fund. Section 5.05 Investment of Special Funds (a) Any money held as part of the funds and accounts created under this Indenture shall be invested or reinvested by the Trustee solely in Eligible Investments pursuant to written direction from the Borrower consistent with the terms of this Indenture. All such Eligible Investments shall mature or be subject to withdrawal or redemption without discount or penalty prior to the next Interest Payment Date. In addition, following receipt of written notice of an Event of Default of the Borrower, the Trustee shall invest and reinvest the money it holds as part of the funds and accounts in Eligible Investments consistent with the terms of this Indenture. 30 Except as described below, any investment made with money on deposit in a fund or account shall be held by or under control of the Trustee and shall be deemed at all times a part of the fund or account where such money was on deposit, and the interest and profits realized from such investment shall be credited to such fund or account and any loss resulting from such investment shall be charged to such fund or account. In the absence of the receipt of any investment instructions as provided herein, the Trustee is hereby directed authorized to invest all money under its control in money market mutual funds described in clause (ii) of the definition of Eligible Investments. (b) The Trustee may make any investment through its own bond department, investment department or other commercial banking department or Affiliate of the Trustee providing investment services. The Trustee, any such department or the Trustee's Affiliates may receive reasonable and customary compensation in connection with any investment made under this Indenture. (c) The Trustee shall have no liability or responsibility for any depreciation of the value of any investment made in accordance with the provisions of this Indenture or for any loss resulting from such investment or redemption, sale or maturity thereof made in accordance with the provisions of this Indenture. (d) Unless otherwise confirmed in writing, an account statement delivered by the Trustee to the Borrower shall be deemed written confirmation by said party that the investment transactions identified therein accurately reflect the investment directions given to the Trustee by said party, unless said party notifies the Trustee in writing to the contrary within 30 days of the date of receipt of such statement. (e) The Issuer (and the Borrower by its execution of the Loan Agreement) acknowledges that to the extent regulations of the Office of the Comptroller of the Currency or other applicable regulatory entity grant the Issuer or the Borrower the right to receive brokerage confirmations of security transactions as they occur, the Issuer and the Borrower specifically waive receipt of such confirmations to the extent permitted by law. The Trustee will furnish to the Issuer, the Borrower and the Investor Limited Partner periodic cash transaction statements that include detail for all investment transactions made by the Trustee hereunder. (f) Except as otherwise provided in subsection (g), the Trustee and Borrower covenant that all investments of amounts deposited in any fund or account created by or pursuant to this Indenture, or otherwise containing gross proceeds of the Bonds (within the meaning of Section 148 of the Code) shall be acquired, disposed of, and valued (as of the date that valuation is required by this Indenture or the Code) at Fair Market Value. Section 5.06 Moneys to be Held in Trust Except where moneys have been deposited with or paid to the Trustee pursuant to an instrument restricting their application to particular Bonds, all moneys required or permitted to be deposited with or paid to the Trustee or the Paying Agent under any provision of this Indenture or the Note, and any investments thereof, shall be held by the Trustee or the Paying Agent in trust. Except for moneys held by the Trustee pursuant to Section 5.09 hereof, all 31 moneys described in the preceding sentence held by the Trustee or the Paying Agent shall be subject to the lien hereof while so held. Section 5.07 Nonpresentment of Bonds In the event that any Bond shall not be presented for payment when the principal thereof becomes due, or a check or draft for interest is uncashed, if moneys sufficient to pay the principal then due of that Bond or of such check or draft shall have been made available to the Trustee for the benefit of its Holder, all liability of the Issuer to that Holder for such payment of the principal then due of the Bond or of such check or draft thereupon shall cease and be discharged completely. Thereupon, it shall be the duty of the Trustee to hold those moneys, without liability for interest thereon, in a separate account in the Bond Fund for the exclusive benefit of the Holder, who shall be restricted thereafter exclusively to those moneys for any claim of whatever nature on its part under this Indenture or on, or with respect to, the principal then due of that Bond or of such check or draft. The Trustee shall notify the Borrower in writing of any Bond that has not been presented for payment when the principal thereof becomes due. Any of those moneys which shall be so held by the Trustee, and which remain unclaimed by the Holder of a Bond not presented for payment or check or draft not cashed for a period of two years after the due date thereof, shall be paid to the Borrower free of any trust or lien, upon a request of the Borrower in writing executed by an Authorized Borrower Representative. Thereafter, the Holder of that Bond shall look only to the Borrower for payment and then only to the amounts so received by the Borrower without any interest thereon, and the Trustee shall not have any responsibility with respect to those moneys. Section 5.08 Repayment to the Borrower from the Bond Fund Except as provided in Section 5.09 hereof, any amounts remaining in the Bond Fund (i) after all of the outstanding Bonds shall be deemed paid and discharged under the provisions of this Indenture, and (ii) after payment of all fees, charges and expenses of the Trustee, the Registrar, the Paying Agents and the Issuer, and of all other amounts required to be paid under this Indenture, the Loan Agreement, the Regulatory Agreement and the Note, shall be paid to the Borrower to the extent that those amounts are in excess of those necessary to effect the payment and discharge of the outstanding Bonds. Section 5.09 Rebate Fund Any provision hereof to the contrary notwithstanding, amounts credited to the Rebate Fund shall be free and clear of any lien hereunder. The Trustee shall furnish to the Borrower all information reasonably requested by the Borrower with respect to the Bonds and investments of the funds and accounts maintained by the Trustee hereunder. The Trustee shall make deposits to and disbursements from the Rebate Fund (including rebate payments to the United States required to be made by the Tax Agreement), as well as investments of the amounts therein, in accordance with the written directions received from the Borrower and the Investor Member pursuant to the Tax Agreement. Section 5.10 Valuation 32 For the purpose of determining the amount on deposit to the credit of any fund or account, the value of obligations in which money in such fund or account shall have been invested shall be computed at the then market value thereof. The Eligible Investments shall be valued by the Trustee at any time requested by the Borrower on reasonable notice to the Trustee (which period of notice may be waived or reduced by the Trustee), provided, however, that the Trustee shall not be required to value the Eligible Investments more than once in any calendar month. Section 5.11 Completion of the Project The completion of the Project and payment of all costs and expenses incident thereto shall be evidenced by the filing with the Trustee of the Completion Certificate required by Section 3.7 of the Loan Agreement. As soon as practicable after the fling with the Trustee of the Completion Certificate, any balance remaining in the Project Fund (other than the amounts retained by the Trustee as described in the Completion Certificate) shall be deposited or applied in accordance with the direction of the Borrower executed by an Authorized Borrower Representative pursuant to Section 3.4 of the Loan Agreement. Section 5.12 Collateral Fund There shall be deposited from time to time in the Collateral Fund, Available Moneys in such amounts and at such times as may be necessary to allow the Trustee to transfer funds from the Project Fund, pursuant to Section 5.03 hereof, upon the Trustee's receipt of a disbursement request from the Borrower. Moneys in the Collateral Fund shall be invested in Eligible Investments. The Collateral Fund shall only be used and applied for, and irrevocably committed to, the payment of (i) the Bond Debt Service Charges on the Bonds which are due and payable on any Interest Payment Date or Maturity Date and (ii) the Bond Debt Service Charges on the Bonds as and when due at any other Bond Payment Date. Any interest earnings on the Collateral Fund shall be credited to the Bond Fund. Section 5.13 Costs of Issuance Fund The Trustee shall use money on deposit to the credit of the Costs of Issuance Fund to pay the costs of issuance on the Closing Date or as soon as practicable thereafter in accordance with written instructions to be given to the Trustee by the Issuer, as set forth in a certificate of the Issuer delivered to the Trustee on the Closing Date or as otherwise directed by the Issuer, upon delivery to the Trustee of appropriate invoices for such expenses. Investment earnings on amounts on deposit in the Costs of Issuance Fund shall be retained in such fund. Amounts remaining on deposit in the Costs of Issuance Fund sixty (60) days after the Closing Date shall be remitted by the Trustee to the Borrower. Upon such final disbursement, the Trustee shall close the Costs of Issuance Fund. END OF ARTICLE V 33 ARTICLE VI THE TRUSTEE, REGISTRAR, PAYING AGENTS AND AUTHENTICATING AGENTS Section 6.01 Trustee's Acceptance and Responsibilities The Trustee accepts the trusts imposed upon it by this Indenture, and agrees to observe and perform those trusts, but only upon and subject to the terms and conditions set forth in this Article, to all of which the parties hereto and the Holders agree. (a) Prior to the occurrence of a default or an Event of Default (as defined in Section 7.01 hereof) of which the Trustee has been notified, as provided in paragraph (f) of Section 6.02 hereof, or of which by that paragraph the Trustee is deemed to have notice, and after the cure or waiver of all defaults or Events of Default which may have occurred, (i) the Trustee undertakes to perform only those duties and obligations which are set forth specifically in this Indenture, and no duties or obligations shall be implied to the Trustee; (ii) in the absence of bad faith, wilful misconduct or gross negligence on its part, the Trustee may rely conclusively, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions which by any provision hereof are required specifically to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture. (b) In case a default or an Event of Default has occurred and is continuing hereunder (of which the Trustee has been notified, or is deemed to have notice), the Trustee shall exercise those rights and powers vested in it by this Indenture and shall use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs. (c) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that (i) this Subsection shall not be construed to affect the limitation of the Trustee's duties and obligations provided in subparagraph (a)(i) of this Section or the Trustee's right to rely on the truth of statements and the correctness of opinions as provided in subparagraph (a)(ii) of this Section; (ii) the Trustee shall not be liable for any error of judgment made in good faith by any one of its officers, unless it shall be established that the Trustee was grossly negligent in ascertaining the pertinent facts; 34 (iii) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of not less than a majority in principal amount of the Bonds then outstanding relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture; and (iv) no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers if it shall have reasonable grounds in its sole discretion for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. (d) Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section 6.01. Section 6.02 Certain Rights and Obligations of the Trustee Except as otherwise provided in Section 6.01 hereof: (a) The Trustee (i) may execute any of the trusts or powers hereof and perform any of its duties by or through attorneys, agents, receivers or employees (but shall be answerable therefor only in accordance with the standard specified above), (ii) shall be entitled to the advice of counsel concerning all matters of trusts hereof and duties hereunder, and (iii) may pay reasonable compensation in all cases to all of those attorneys, agents, receivers and employees reasonably employed by it in connection with the trusts hereof (at its own expense or, if such attorneys, agents and receivers are reasonably employed by the Trustee to perform Extraordinary Services, at the expense of the Borrower as provided in Section 6.03 hereof). The Trustee may act upon the opinion or advice of any attorney (who may be the attorney or attorneys for the Issuer or the Borrower) approved by the Trustee in the exercise of reasonable care. The Trustee shall not be responsible for any loss or damage resulting from any action taken or omitted to be taken in good faith in reliance upon that opinion or advice. (b) The Trustee shall not be responsible for: (i) the validity, priority, recording, re- recording, filing or re -filing of this Indenture or any Supplemental Indenture or the Regulatory Agreement, (ii) any instrument or document of further assurance or collateral assignment, (iii) insurance of the Project, (iv) the validity of the execution by the Issuer of this Indenture, any Supplemental Indenture or instruments or documents of further assurance, 35 (v) the sufficiency of the security for the Bonds issued hereunder or intended to be secured hereby, (vi) the value of or title to the Project, except that, in the event that the Trustee enters into possession of a part or all of the Project pursuant to any provision of the Regulatory Agreement or any other instrument or document collateral thereto, the Trustee shall use due diligence in preserving that property. The Trustee shall not be bound to ascertain or inquire as to the observance or performance of any covenants, agreements or obligations on the part of the Issuer or the Borrower under the Loan Agreement except as set forth hereinafter; but the Trustee may require of the Issuer or the Borrower full information and advice as to the observance or performance of those covenants, agreements and obligations. Except as otherwise provided in Section 7.04 hereof, the Trustee shall have no obligation to observe or perform any of the duties of the Issuer under the Loan Agreement. (c) The Trustee shall not be accountable for the application by the Borrower or any other Person of the proceeds of any Bonds authenticated or delivered hereunder. (d) The Trustee shall be protected, in the absence of bad faith on its part, in acting upon any notice, request, consent, certificate, order, affidavit, letter, telegram or other paper or document reasonably believed by it to be genuine and correct and to have been signed or sent by the proper Person or Persons. Any action taken by the Trustee pursuant to this Indenture upon the request, authority or consent of any Person who is the Holder of any Bonds at the time of making the request or giving the authority or consent, shall be conclusive and binding upon all future Holders of the same Bond and of Bonds issued in exchange therefor or in place thereof. (e) As to the existence or nonexistence of any fact for which the Issuer or the Borrower may be responsible or as to the sufficiency or validity of any instrument, document, report, paper or proceeding, the Trustee, in the absence of bad faith on its part, shall be entitled to rely upon a certificate signed on behalf of the Issuer or Borrower, as appropriate, by an authorized officer or representative thereof as sufficient evidence of the facts recited therein. Prior to the occurrence of a default or Event of Default hereunder of which the Trustee has been notified, as provided in paragraph (f) of this Section, or of which by that paragraph the Trustee is deemed to have notice, the Trustee may accept a similar certificate to the effect that any particular dealing, transaction or action is necessary or expedient, provided that the Trustee in its discretion may require and obtain any further evidence which it deems to be necessary or advisable; and, provided further, that the Trustee shall not be bound to secure any such further evidence. (f) The Trustee shall not be required to take notice, and shall not be deemed to have notice, of any default or Event of Default hereunder, except Events of Default described in paragraphs (a), (b) and (d) (but only with respect to paragraph (a) of Section 7.1 of the Loan Agreement) of Section 7.01 hereof, unless the Trustee shall be U1 notified specifically of the default or Event of Default in a written instrument or document delivered to it by the Issuer or by the Holders of at least 10% of the aggregate principal amount of Bonds then outstanding. In the absence of delivery of a notice satisfying those requirements, the Trustee may assume conclusively that there is no default or Event of Default, except as noted above. (g) The Trustee shall not be required to give any bond or surety with respect to the execution of these trusts and powers or otherwise in respect of the premises. (h) Notwithstanding anything contained elsewhere in this Indenture, the Trustee may demand any showings, certificates, reports, opinions, appraisals and other information, and any corporate action and evidence thereof, in addition to that required by the terms hereof, as a condition to the authentication of any Bonds or the taking of any action whatsoever within the purview of this Indenture, if the Trustee deems it to be desirable for the purpose of establishing the right of any Person to the taking of any other action by the Trustee, provided that the Trustee shall not be required to make that demand. (i) Before taking action hereunder pursuant to Section 6.04 or Article VII hereof (with the exception of any action required to be taken under Section 7.02 hereof), the Trustee may require that a satisfactory indemnity bond be furnished to it for the reimbursement of all expenses which it may incur and to protect it against all liability by reason of any action so taken, except liability which is adjudicated to have resulted from its negligence or willful misconduct. The Trustee may take action without that indemnity, and in that case, the Borrower shall reimburse the Trustee for all of the Trustee's expenses pursuant to Section 6.03 hereof. 0) Unless otherwise provided herein, all moneys received by the Trustee under this Indenture shall be held in trust for the purposes for which those moneys were received, until those moneys are used, applied or invested as provided herein, provided that those moneys need not be segregated from other moneys, except to the extent required by this Indenture or by law. Absent written direction provided to the Trustee pursuant to Section 5.05 hereof, the Trustee shall not be responsible or liable for keeping moneys held by it hereunder invested in any particular investment, and the Trustee shall not have any liability for interest on any moneys received hereunder, except to the extent expressly provided herein. (k) Any resolution by the governing body of the Issuer, and any opinions, certificates and other instruments and documents for which provision is made in this Indenture, may be accepted by the Trustee, in the absence of bad faith on its part, as conclusive evidence of the facts and conclusions stated therein and shall be full warrant, protection and authority to the Trustee for its actions taken hereunder. (1) The Trustee shall be entitled to file proofs of claim in bankruptcy at the direction of the Holders of at least 25% in aggregate principal amount of Bonds outstanding. Trustee fees and expenses are intended to constitute administrative expenses in bankruptcy. 37 (n) The duties and obligations of the Trustee shall be determined solely by the express provisions of this Indenture, and the Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Indenture. No implied covenants or obligations shall be read into this Indenture against the Trustee. Notwithstanding any provision herein, the Trustee shall have no duty or obligation to the Borrower except as may be expressly set forth in this Indenture. (o) The Trustee shall not be responsible or liable for any failure or delay in the performance of its obligations under this Indenture arising or caused, directly or indirectly by circumstances beyond its reasonable control including, without limitation, acts of God; earthquakes; fire; flood; hurricanes or other storms wars; terrorism; similar military disturbances; sabotage; epidemic; pandemic; riots; interruptions; loss or malfunctions of utilities, communications services; accidents; labor disputes; acts of civil or military authority or governmental action; it being understood that the Trustee shall use commercially reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as reasonably practicable under any such circumstances. (p) Notwithstanding anything contained herein to the contrary, upon the occurrence and continuance of an Event of Default, before taking any action which may subject the Trustee to liability under any environmental law, statute, regulation or similar requirement relating to the environment, the Trustee may require that a satisfactory indemnity bond, indemnity or environmental impairment insurance be furnished for the payment or reimbursement of all costs and expenses to which it may be put (including reasonable attorney's fees, costs and expenses) and to protect it against all liability resulting from any claims, judgments, damages, losses, penalties, fines, liabilities (including strict liability) and costs and expenses which may result from such foreclosure or other action (including reasonable attorney's fees, costs and expenses). Section 6.03 Fees, Charges and Expenses of Trustee, Registrar, Paving Agents and Authenticating Agents The Trustee, Registrar, Paying Agents and Authenticating Agents shall be entitled to payment or reimbursement by the Borrower, as provided in the Loan Agreement, for customary fees for their respective Ordinary Services rendered hereunder and for all advances, counsel fees and other Ordinary Expenses reasonably and necessarily paid or incurred by them in connection with the provision of Ordinary Services. For purposes hereof, fees for Ordinary Services provided for by their respective standard fee schedule shall be considered customary. Notwithstanding anything in this Indenture or the other Loan Documents to the contrary, fees of the Trustee, Registrar, Paying Agents and Authenticating Agents for Ordinary Services and any fees for services of the Dissemination Agent under the Continuing Disclosure Agreement shall be paid directly by the Borrower to the Trustee as provided in Section 4.2(c) of the Loan Agreement. In the event that it should become necessary for any of them to perform Extraordinary Services, they shall be entitled to customary extra compensation therefor and to reimbursement for reasonable and necessary Extraordinary Expenses incurred in connection therewith. Unless and until such time as the Trustee resigns or is replaced, and a successor 38 Trustee is appointed pursuant to Section 6.09 hereunder, the Trustee shall continue to perform its duties hereunder notwithstanding the Borrower's failure to timely pay such fees. Without creating a default or an Event of Default hereunder, however, the Borrower may contest in good faith the necessity for any Extraordinary Service and Extraordinary Expense and the amount of any fee, charge or expense except Ordinary Expenses. The Trustee, Registrar, Paying Agents and Authenticating Agents shall not be entitled to compensation or reimbursement for Extraordinary Services or Extraordinary Expenses occasioned by their negligence or willful misconduct. The customary fees for their respective Ordinary Services and charges of the foregoing shall be entitled to payment and reimbursement only from (i) the Additional Payments made by the Borrower pursuant to the Loan Agreement, or (ii) from other moneys available therefor. Any amounts payable to the Trustee, the Registrar, the Paying Agents or the Authenticating Agents pursuant to this Section 6.03 shall be payable upon receipt of a detailed invoice from the Trustee, Registrar, Paying Agents or Authenticating Agents, as applicable, and shall bear interest beginning thirty (30) days following the provision of the respective invoice to the Borrower at the Interest Rate for Advances. Section 6.04 Intervention by Trustee The Trustee may intervene on behalf of the Holders, and shall intervene if requested to do so in writing by the Holders of at least 25% of the aggregate principal amount of Bonds then outstanding, in any judicial proceeding to which the Issuer or the Borrower is a party and which in the opinion of the Trustee and its counsel has a substantial bearing on the interests of Holders of the Bonds. The rights and obligations of the Trustee under this Section are subject to the approval of that intervention by a court of competent jurisdiction. The Trustee may require that a satisfactory indemnity bond be provided to it in accordance with Sections 6.01 and 6.02 hereof before it takes action hereunder. Section 6.05 Successor Trustee Anything herein to the contrary notwithstanding, (a) any corporation or association (i) into which the Trustee may be converted or merged, (ii) with which the Trustee or any successor to it may be consolidated, or (iii) to which it may sell or transfer its corporate trust assets and corporate trust business as a whole or substantially as a whole, or any corporation or association resulting from any such conversion, merger, consolidation, sale or transfer, ipso facto, shall be and become successor Trustee hereunder and shall be vested with all of the title to the whole property or Trust Estate hereunder; and (b) that corporation or association shall be vested further, as was its predecessor, with each and every trust, property, remedy, power, right, duty, obligation, discretion, privilege, claim, demand, cause of action, immunity, estate, title, interest and lien expressed or intended by this Indenture to be exercised by, vested in or conveyed to 39 the Trustee, without the execution or filing of any instrument or document or any further act on the part of any of the parties hereto. Any successor Trustee, however, (i) shall be a trust company or a bank having the powers of a trust company, (ii) shall be in good standing within the State, (iii) shall be duly authorized to exercise trust powers within the State, (iv) shall have a reported capital, surplus and retained earnings of not less than $100,000,000, and (v) shall have at least a Minimum Trustee Rating. Section 6.06 Appointment of Co- Trustee It is the purpose of this Indenture that there shall be no violation of any law of any jurisdiction (including without limitation, the laws of the State) denying or restricting the right of banks or trust companies to transact business as trustees in that jurisdiction. It is recognized that, (a) if there is litigation under this Indenture or other instruments or documents relating to the Bonds and the Project, and in particular, in case of the enforcement hereof or thereof upon a default or an Event of Default, or (b) if the Trustee should deem that, by reason of any present or future law of any jurisdiction, it may not (i) exercise any of the powers, rights or remedies granted herein to the Trustee, (ii) hold title to the properties, in trust, as granted herein, or (iii) take any action which may be desirable or necessary in connection therewith, it may be necessary that the Trustee appoint an individual or additional institution as a co- Trustee. The following provisions of this Section are adapted to these ends. In the event that the Trustee appoints an individual or additional institution as a co- Trustee, each and every trust, property, remedy, power, right, duty, obligation, discretion, privilege, claim, demand, cause of action, immunity, estate, title, interest and lien expressed or intended by this Indenture to be exercised by, vested in or conveyed to the Trustee shall be exercisable by, vest in and be conveyed to that co- Trustee, but only to the extent necessary for it to be so vested and conveyed and to enable that co- Trustee to exercise it. Every covenant, agreement and obligation necessary to the exercise thereof by that co- Trustee shall run to and be enforceable by it. Should any instrument or document in writing from the Issuer reasonably be required by the co- Trustee so appointed by the Trustee for vesting and conveying more fully and certainly in and to that co- Trustee those trusts, properties, remedies, powers, rights, duties, obligations, discretions, privileges, claims, demands, causes of action, immunities, estates, titles, interests and liens, that instrument or document shall be executed, acknowledged and delivered, but not prepared, by the Issuer. In case any co- Trustee or a successor to it shall die, become incapable of acting, resign or be removed, all of the trusts, properties, remedies, powers, rights, duties, obligations, discretions, privileges, claims, demands, causes of action, immunities, estates, titles, interests and liens of the co- Trustee shall be exercised by, vest in and be conveyed to the Trustee, to the extent permitted by law, until the appointment of a successor to the co- Trustee. The total compensation of the Trustee and any co- Trustee or separate trustee shall be as, and may not exceed the amounts, provided in Section 6.03 hereof. 40 Section 6.07 Resignation by the Trustee The Trustee may resign at any time from the trusts created hereby by giving written notice of the resignation to the Issuer, the Borrower, the Investor Member, the Registrar, the Paying Agents and Authenticating Agents, and by mailing written notice of the resignation to the Holders as their names and addresses appear on the Register at the close of business fifteen days prior to the mailing. Notwithstanding the foregoing, if the Trustee no longer has a Minimum Trustee Rating, it shall resign within sixty (60) calendar days of the withdrawal or suspension of a former Minimum Trustee Rating or other event giving rise to its failure to maintain a Minimum Trustee Rating. The resignation shall take effect upon the appointment of a successor Trustee as provided for in Section 6.09 of this Indenture or an order of a court of competent jurisdiction allowing the Trustee to resign. Section 6.08 Removal of the Trustee The Trustee may be removed at any time by an instrument or document or concurrent instruments or documents in writing delivered to the Trustee, with copies thereof mailed to the Issuer, the Registrar, the Paying Agents and Authenticating Agents and the Borrower, and signed by or on behalf of the Majority of the Holders of the Bonds. The Trustee also may be removed at any time for any breach of trust or for acting or proceeding in violation of, or for failing to act or proceed in accordance with, any provision of this Indenture with respect to the duties and obligations of the Trustee by any court of competent jurisdiction upon the application of the Issuer or the Holders of not less than 25% in aggregate principal amount of the Bonds then outstanding under this Indenture. The removal of the Trustee under this Section 6.08 shall take effect upon the appointment of a successor Trustee as provided for in Section 6.09 of this Indenture. Section 6.09 Appointment of Successor Trustee If (i) the Trustee shall resign, shall be removed, shall be dissolved, or shall become otherwise incapable of acting hereunder, (ii) the Trustee shall be taken under the control of any public officer or officers, or (iii) a receiver shall be appointed for the Trustee by a court, then a successor Trustee shall be appointed by the Issuer, provided that if a successor Trustee is not so appointed within thirty days after (a) a notice of resignation or an instrument or document of removal is received by the Issuer, as provided in Sections 6.07 and 6.08 hereof, respectively, or (b) the Trustee is dissolved, taken under control, becomes otherwise incapable of acting or a receiver is appointed, in each case, as provided above, then, but only so long as the Issuer shall not have appointed a successor Trustee, the Holders of a majority in aggregate principal amount of Bonds then outstanding may designate a successor Trustee by an instrument or document or concurrent instruments or documents in writing signed by or on behalf of those Holders. If no appointment of a successor Trustee shall be made pursuant to the foregoing provisions of this Section, the Holder of any Bond outstanding hereunder or any retiring Trustee may apply to any court of competent jurisdiction to appoint a successor Trustee. Such court may thereupon, after such notice, if any, as such court may deem proper and prescribe, appoint a successor Trustee. 41 Every successor Trustee appointed pursuant to this Section (i) shall be a trust company or a bank having the powers of a trust company (ii) shall be in good standing within the State, (iii) shall be duly authorized to exercise trust powers within the State, (iv) shall have a reported capital, surplus and retained earnings of not less than $100,000,000, (v) shall be willing to accept the trusteeship under the terms and conditions of this Indenture, and (vi) shall have a Minimum Trustee Rating. Every successor Trustee appointed hereunder shall execute and acknowledge, and shall deliver to its predecessor, the Issuer and the Borrower an instrument or document in writing accepting the appointment. Thereupon, without any further act, the successor shall become vested with all of the trusts, properties, remedies, powers, rights, duties, obligations, discretions, privileges, claims, demands, causes of action, immunities, estates, titles, interests and liens of its predecessor. Upon the written request of its successor, the Issuer or the Borrower, and payment of all fees and expenses owed to it, the predecessor Trustee (i) shall execute and deliver an instrument or document transferring to its successor all of the trusts, properties, remedies, powers, rights, duties, obligations, discretions, privileges, claims, demands, causes of action, immunities, estates, titles, interests and liens of the predecessor Trustee hereunder, and (ii) shall take any other action necessary to duly assign, transfer and deliver to its successor all property (including without limitation, all securities and moneys) held by it as Trustee. Should any instrument or document in writing from the Issuer be requested by any successor Trustee for vesting and conveying more fully and certainly in and to that successor the trusts, properties, remedies, powers, rights, duties, obligations, discretions, privileges, claims, demands, causes of action, immunities, estates, titles, interests and liens vested or conveyed or intended to be vested or conveyed hereby in or to the predecessor Trustee, the Issuer shall execute, acknowledge and deliver that instrument or document. In the event of a change in the Trustee, the predecessor Trustee shall cease to be custodian of any moneys which it may hold pursuant to this Indenture and shall cease to be Registrar, Authenticating Agent and a Paying Agent for any of the Bonds, to the extent it served in any of those capacities. Section 6.10 Adoption of Authentication In case any of the Bonds shall have been authenticated, but shall not have been delivered, any successor Trustee, Registrar or Authenticating Agent may adopt the certificate of authentication of any predecessor Trustee, Registrar or Authenticating Agent and may deliver those Bonds so authenticated as provided herein. In case any Bonds shall not have been authenticated, any successor Trustee, Registrar or Authenticating Agent may authenticate those Bonds in its own name as successor Trustee. In all cases, the certificate of authentication shall have the same force and effect as provided in the Bonds or in this Indenture with respect to the certificate of authentication of the predecessor Trustee, Registrar or Authenticating Agent. Section 6.11 Reizistrars (a) Succession. Anything herein to the contrary notwithstanding, any corporation or association (i) into which a Registrar may be converted or merged, (ii) with which a Registrar or any successor to it may be consolidated, or (iii) to which it may sell or transfer its assets as a 42 whole or substantially as a whole, or any corporation or association resulting from any such conversion, merger, consolidation, sale or transfer, ipso facto, shall be and become successor Registrar to that Registrar hereunder and shall be vested with each and every power, right, duty, obligation, discretion and privilege expressed or intended by this Indenture to be exercised by or vested in the predecessor Registrar, without the execution or filing of any instrument or document or any further act on the part of any of the parties hereto. (b) Resignation. A Registrar may resign at any time by giving written notice of its resignation to the Issuer, the Borrower, the Trustee and to each Paying Agent and Authenticating Agent for the Bonds, at least 60 days before the resignation is to take effect. The resignation shall take effect immediately, however, upon the appointment of a successor Registrar, if the successor Registrar is appointed and accepts that appointment before the time stated in the notice. (c) Removal. The Registrar may be removed at any time by an instrument or document or concurrent instruments or documents in writing delivered to the Registrar, with copies thereof mailed to the Issuer, the Trustee and the Borrower, and signed by or on behalf of the Holders of not less than a majority in aggregate principal amount of the Bonds then outstanding. (d) Appointment of Successors. If (i) a Registrar shall resign, shall be removed, shall be dissolved, or shall become otherwise completely incapable of acting hereunder, (ii) a Registrar shall be taken under the control of any public officer or officers, (iii) a receiver shall be appointed for a Registrar by a court, or (iv) a Registrar shall have an order for relief entered in any case commenced by or against it under the federal bankruptcy laws or commence a proceeding under any federal or state bankruptcy, insolvency, reorganization or similar law, or have such a proceeding commenced against it and either have an order of insolvency or reorganization entered against it or have the proceeding remain undismissed and unstayed for ninety days, then a successor Registrar shall be appointed by the Trustee, with the written consent of the Borrower, provided that if a successor Registrar is not so appointed within ten days after (a) a notice of resignation or an instrument or document of removal is received by the Trustee, as provided above, or (b) the Registrar is dissolved, taken under control, becomes otherwise incapable of acting or a receiver is appointed, in each case, as provided above, then, if the Trustee shall not have appointed a successor Registrar, the Trustee shall be and become the Registrar. Every successor Registrar appointed hereunder shall execute and acknowledge, and shall deliver to its predecessor, the Issuer, the Trustee and the Borrower, an instrument or document in writing accepting the appointment. Thereupon, without any further act, the successor shall become vested with all of the properties, remedies, powers, rights, duties, obligations, discretions, privileges, claims, demands, causes of action, immunities, titles and interests of its predecessor. Upon the written request of its successor, the Issuer or the Borrower, a predecessor Registrar (i) shall execute and deliver an instrument or document transferring to its successor all of the properties, remedies, powers, rights, duties, obligations, discretions, privileges, claims, demands, causes of action, immunities, titles and interests of it as predecessor Registrar hereunder, and (ii) shall take any other action necessary to duly assign, transfer and deliver to its successor all property and records (including without limitation, the Register and any cancelled 43 Bonds) held by it as Registrar. Should any instrument or document in writing from the Issuer be requested by any successor Registrar for vesting and conveying more fully and certainly in and to that successor the properties, remedies, powers, rights, duties, obligations, discretions, privileges, claims, demands, causes of action, immunities, titles and interests vested or conveyed or intended to be vested or conveyed hereby in or to a predecessor Registrar, the Issuer shall execute, acknowledge and deliver that instrument or document. The Trustee shall cause the Borrower to pay pursuant to Section 4.2 of the Loan Agreement, to any Registrar customary compensation for its services from time to time, as authorized, but subject to the limitations set forth, in Section 6.03 hereof. The provisions of Sections 3.05, 3.06, 3.07 and 6.02(d) hereof shall be applicable to the Registrar. Section 6.12 Designation and Succession of Paving Agents The Trustee shall be a Paying Agent for the Bonds, and, with the consent of the Issuer, the Trustee may appoint a Paying Agent or Agents with power to act on its behalf and subject to its direction in the payment of Bond Debt Service Charges on the Bonds. It is the responsibility of the Trustee to establish the duties and responsibilities of the Paying Agent for the purposes of this Indenture, to the extent not specified herein. Any corporation or association with or into which the Paying Agent may be merged or converted or with which it may be consolidated, or any corporation or association resulting from any merger, consolidation or conversion to which the Paying Agent shall be a party, or any corporation or association succeeding to the trust business of the Paying Agent, shall be the successor of that Paying Agent hereunder, if that successor corporation or association is otherwise eligible hereunder, without the execution or filing of any paper or any further act on the part of the parties hereto or the Paying Agent or that successor corporation or association. The Paying Agent may at any time resign by giving written notice of resignation to the Trustee, to the Registrar and to the Borrower. The Trustee may at any time terminate the agency of the Paying Agent by giving written notice of termination to such Paying Agent, to the Registrar and to the Borrower. Upon receiving such a notice of resignation or upon such a termination, or in case at any time the Paying Agent shall cease to be eligible under this Section, the Trustee may appoint a successor Paying Agent. The Trustee shall give written notice of appointment of a successor Paying Agent to the Borrower, the Issuer and the Registrar and shall mail, within ten days after that appointment, notice thereof to all Holders as their names and addresses appear on the Register on the date of that appointment. The Trustee shall cause the Borrower to pay pursuant to Section 4.2 of the Loan Agreement, to the Paying Agent from time to time customary compensation as authorized, but subject to the limitations set forth, in Section 6.03 hereof for its services. The provisions of Section 3.05, 3.07 and Subsection 6.02(d) shall be applicable to the Paying Agent. Section 6.13 Designation and Succession of Authenticating Agents 44 The Trustee may appoint an authenticating agent or agents (each referred to herein as an "Authenticating Agent "), in addition to the Registrar, with power to act on its behalf and subject to its direction in the authentication and delivery of Bonds in connection with transfers and exchanges under Sections 3.06 and 4.02 hereof. For all purposes of this Indenture, the authentication and delivery of Bonds by an Authenticating Agent pursuant to this Section shall be deemed to be authentication and delivery of those Bonds "by the Trustee ". Any corporation or association with or into which any Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation or association resulting from any merger, consolidation or conversion to which any Authenticating Agent shall be a party, or any corporation or association succeeding to the trust business of any Authenticating Agent, shall be the successor of that Authenticating Agent hereunder, if that successor corporation or association is otherwise eligible hereunder, without the execution or filing of any paper or any further act on the part of the parties hereto or the Authenticating Agent or such successor corporation. Any Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee, to the Registrar and to the Borrower. The Trustee may at any time terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent, to the Registrar and to the Borrower. Upon receiving such a notice of resignation or upon such a termination, or in case at any time any Authenticating Agent shall cease to be eligible under this Section, the Trustee may appoint a successor Authenticating Agent. The Trustee shall give written notice of appointment of a successor Authenticating Agent to the Borrower, the Issuer and the Registrar and shall mail, within ten days after that appointment, notice thereof to all Holders as their names and addresses appear on the Register on the date of that appointment. The Trustee shall cause the Borrower to pay pursuant to Section 4.2 of the Loan Agreement, to any Authenticating Agent from time to time customary compensation for its services. The provisions of Section 3.05 and Subsections 6.02(b), (c), (d), (h) and (i) shall be applicable to any Authenticating Agent. Section 6.14 Dealing in Bonds The Trustee, a Registrar, a Paying Agent and an Authenticating Agent, their Affiliates, and any directors, officers, employees or agents thereof, in good faith, may become the owners of Bonds secured hereby with the same rights which it or they would have hereunder if the Trustee, the Registrar, Paying Agents and Authenticating Agents did not serve in those capacities. Section 6.15 Representations, Agreement and Covenants of Trustee The Trustee hereby represents that it is a national banking association duly organized and validly existing under the laws of the United States of America, in good standing and duly authorized to exercise corporate trust powers in the State, and that it has an unimpaired reported capital, surplus and retained earnings of not less than $100,000,000. The Trustee covenants that 45 it will take such action, if any, as is necessary to remain in good standing and duly authorized to exercise corporate trust powers in the State, and that it will maintain an unimpaired reported capital, surplus and retained earnings of not less than $100,000,000. The Trustee accepts and agrees to observe and perform the duties and obligations of the Trustee to which reference is made in any other instrument or document providing security for any of the Bonds. Section 6.16 Right of Trustee to Pay Taxes and Other Charges The Trustee is hereby authorized (i) to pay taxes, assessments and other governmental charges with respect to the Project, (ii) to make payments for the discharge of mechanics' and other liens relating to the Project, (iii) to obtain and maintain insurance for the Project and pay premiums therefor, and (iv) generally, to make payments and incur expenses, all in the event that the Borrower fails to do so as required by the Loan Agreement, but only to the extent that it has received funds necessary for the purpose of making any such payments, and in any event without prejudice to any rights of the Trustee or the Holders against the Borrower for failure of the Borrower to do so. Any amount so paid at any time, with interest thereon at the Interest Rate for Advances from the date of payment, (i) shall be an additional obligation secured by this Indenture, (ii) shall be given a preference in payment over any Bond Debt Service Charges, and (iii) shall be paid out of the Issuer Revenues, if not caused otherwise to be paid. The Trustee shall only make such payments if it shall have been requested to do so by the Holders of at least 25% of the aggregate principal amount of Bonds then outstanding and shall have been provided with adequate funds for the purpose of making such payment. Section 6.17 Internleader In the event of a dispute between any of the parties hereto with respect to the disposition of any funds held by the Trustee hereunder, or the Trustee receives conflicting demands made upon the Trustee with respect to the Trustee's duties hereunder or any other document related to the Bonds, the Trustee shall be entitled to file a suit in interpleader in a court of competent jurisdiction seeking to require the parties to interplead and litigate in such court their several claims and rights among themselves. Upon the filing of such a suit and the deposit of the applicable funds to such court, the Trustee will ipso facto be fully released and discharged from all obligations to further perform any and all duties imposed hereunder or any other document related to the Bonds regarding such matter and/or such funds that are the subject of such interpleader suit. In the event that the Trustee remains as Trustee under this Indenture and receives a court order, directive or other request regarding the interpleader suit, the Trustee shall be entitled to rely upon such instruction without incurring any obligation or liability and the parties hereto release, hold harmless and indemnify the Trustee for any obligation or liability for so relying on such court instruction. Section 6.18 Survival of Certain Provisions The provisions of Sections 6.01 through 6.18 of this Indenture shall survive the release, discharge and satisfaction of this Indenture. END OF ARTICLE VI 47 ARTICLE VII DEFAULT PROVISIONS AND REMEDIES OF TRUSTEE AND HOLDERS Section 7.01 Defaults; Events of Default The occurrence of any of the following events is defined as and declared to be and to constitute an Event of Default hereunder: (a) Payment of any interest on any Bond shall not be made when and as that interest shall become due and payable; (b) Payment of the principal of any Bond shall not be made when and as that principal shall become due and payable, whether at stated maturity, upon acceleration or otherwise; (c) Failure by the Issuer to observe or perform any other covenant, agreement or obligation on its part to be observed or performed contained in this Indenture or in the Bonds, which failure shall have continued for a period of 30 days after written notice, by registered or certified mail, to the Issuer and the Borrower specifying the failure and requiring that it be remedied, which notice may be given by the Trustee in its discretion and shall be given by the Trustee at the written request of the Holders of not less than 25% in aggregate principal amount of Bonds then outstanding, provided that if the failure is other than the payment of money and is of such nature that it can be corrected but not within the applicable period, that failure shall not constitute an Event of Default so long as the Issuer or the Borrower institutes curative action within the applicable period and diligently pursues that action to completion, which must be resolved within one hundred eighty (180) days after the aforementioned notice; and (d) The occurrence and continuance of an Event of Default as defined in Section 7.1 of the Loan Agreement The term "default" or "failure" as used in this Article means (i) a default or failure by the Issuer in the observance or performance of any of the covenants, agreements or obligations on its part to be observed or performed contained in this Indenture or in the Bonds, or (ii) a default or failure by the Borrower under the Loan Agreement, exclusive of any period of grace or notice required to constitute an Event of Default, as provided above or in the Loan Agreement. Section 7.02 Notice of Default If an Event of Default shall occur, the Trustee shall give written notice of the Event of Default, by registered or certified mail, to the Issuer, the Borrower, the Investor Member, the Registrar or the Paying Agent and Authenticating Agent, within five days after the Trustee has notice of the Event of Default pursuant to Section 6.02(f) of this Indenture. If an Event of Default occurs of which the Trustee has notice pursuant to this Indenture, the Trustee shall give written notice thereof, within thirty days after the Trustee's receipt of notice of its occurrence, to 48 the Holders of all Bonds then outstanding as shown by the Register at the close of business fifteen days prior to the mailing of that notice. The Investor Member shall be entitled to cure any Event of Default hereunder within the time frame provided to the Borrower hereunder. The Issuer and Trustee agree that cure of any default or Event of Default made or tendered by the Investor Member shall be deemed to be a cure by the Borrower and shall be accepted or rejected on the same basis as if made or tendered by the Borrower. Section 7.03 Acceleration Upon the occurrence of an Event of Default described in Section 7.01(a) and (b), the Trustee may declare, and upon the written request of the Holders of not less than 25% in aggregate principal amount of Bonds then outstanding the Trustee shall declare, by a notice in writing delivered to the Issuer and the Borrower, the principal of all Bonds then outstanding (if not then due and payable), and the interest accrued thereon, to be due and payable immediately. Upon the occurrence of any Event of Default other than those described in Section 7.01(a) and (b), the Trustee, with the written consent of all Holders of Bonds then outstanding, may declare by a notice in writing delivered to the Issuer and Borrower, the principal of all Bonds then outstanding (if not then due and payable), and the interest accrued thereon, to be due and payable immediately. Upon such declaration, the principal and interest on the Bonds shall become and be due and payable immediately. Interest on the Bonds shall accrue to the date determined by the Trustee for the tender of payment to the Holders pursuant to that declaration, provided that interest on any unpaid principal of Bonds outstanding shall continue to accrue from the date determined by the Trustee for the tender of payment to the Holders of those Bonds. The provisions of the preceding paragraph are subject, however, to the condition that if, at any time after declaration of acceleration and prior to the entry of a judgment in a court for enforcement hereunder (after an opportunity for hearing by the Issuer and the Borrower), (a) all sums payable hereunder (except the principal of and interest on Bonds which have not reached their stated maturity dates but which are due and payable solely by reason of that declaration of acceleration), plus interest to the extent permitted by law on any overdue installments of interest at the rate borne by the Bonds in respect of which the default shall have occurred, shall have been duly paid or provision shall have been duly made therefor by deposit with the Trustee or Paying Agents, and (b) all existing Events of Default shall have been cured, then and in every case, the Trustee shall waive the Event of Default and its consequences and shall rescind and annul that declaration. No waiver or rescission and annulment shall extend to or affect any subsequent Event of Default or shall impair any rights consequent thereon. Section 7.04 Other Remedies; Rights of Holders With or without taking action under Section 7.03 hereof, upon the occurrence and continuance of an Event of Default, the Trustee may pursue any available remedy, including 49 without limitation actions at law or equity to enforce the payment of Bond Debt Service Charges or the observance and performance of any other covenant, agreement or obligation under this Indenture, the Loan Agreement, the Regulatory Agreement or the Note or any other instrument providing security, directly or indirectly, for the Bonds. If, upon the occurrence and continuance of an Event of Default, the Trustee is requested so to do by the Holders of at least 25% in aggregate principal amount of Bonds outstanding, the Trustee (subject to the provisions of Sections 6.01 and 6.02 and particularly subparagraph 6.01(c)(iv) and Subsection 6.02 0) of those Sections), shall exercise any rights and powers conferred by this Section and by Section 7.03 hereof. No remedy conferred upon or reserved to the Trustee (or to the Holders) by this Indenture is intended to be exclusive of any other remedy. Each remedy shall be cumulative and shall be in addition to every other remedy given hereunder or otherwise to the Trustee or to the Holders now or hereafter existing. No delay in exercising or omission to exercise any remedy, right or power accruing upon any default or Event of Default shall impair that remedy, right or power or shall be construed to be a waiver of any default or Event of Default or acquiescence therein. Every remedy, right and power may be exercised from time to time and as often as may be deemed to be expedient. No waiver of any default or Event of Default hereunder, whether by the Trustee or by the Holders, shall extend to or shall affect any subsequent default or Event of Default or shall impair any remedy, right or power consequent thereon. As the assignee of all right, title and interest of the Issuer in and to the Loan Agreement (except for the Unassigned Issuer's Rights), the Trustee is empowered to enforce each remedy, right and power granted to the Issuer under the Loan Agreement. In exercising any remedy, right or power thereunder or hereunder, the Trustee shall take such action as may be directed by the requisite percentage of the Holders of the Bonds then outstanding, applying the standards described in Sections 6.01 and 6.02 hereof. Section 7.05 Right of Holders to Direct Proceedings Anything to the contrary in this Indenture notwithstanding, the Holders of a majority in aggregate principal amount of Bonds then outstanding shall have the right at any time to direct, by an instrument or document in writing executed and delivered to the Trustee, the method and place of conducting all proceedings to be taken in connection with the enforcement of the terms and conditions of this Indenture or any other proceedings hereunder, provided that (i) any direction shall not be other than in accordance with the provisions of law and of this Indenture, and (ii) the Trustee shall be indemnified as provided in Sections 6.01 and 6.02. Section 7.06 Application of Moneys After payment of any costs, expenses, liabilities and advances paid, incurred or made by the Trustee in the collection of moneys and to all fees of the Trustee for Ordinary and Extraordinary Expenses pursuant to any right given or action taken under the provisions of this Article or the provisions of the Loan Agreement, the Regulatory Agreement or the Note 50 (including without limitation, reasonable attorneys' fees and expenses, except as limited by law or judicial order or decision entered in any action taken under this Article VII), all moneys received by the Trustee, shall be applied as follows, subject to Section 3.04 hereof: (a) Unless the principal of all of the Bonds shall have become, or shall have been declared to be, due and payable, all of those moneys shall be deposited in the Bond Fund and shall be applied: First -- To the payment to the Holders entitled thereto of all installments of interest then due on the Bonds, in the order of the dates of maturity of the installments of that interest, beginning with the earliest date of maturity and, if the amount available is not sufficient to pay in full any particular installment, then to the payment thereof ratably, according to the amounts due on that installment, to the Holders entitled thereto, without any discrimination or privilege, except as to any difference in the respective rates of interest specified in the Bonds; and Second -- To the payment to the Holders entitled thereto of the unpaid principal of any of the Bonds which shall have become due, in the order of their due dates, beginning with the earliest due date, with interest on those Bonds from the respective dates upon which they became due at the rates specified in those Bonds, and if the amount available is not sufficient to pay in full all Bonds due on any particular date, together with that interest, then to the payment thereof ratably, according to the amounts of principal due on that date, to the Holders entitled thereto, without any discrimination or privilege, except as to any difference in the respective rates of interest specified in the Bonds. (b) If the principal of all of the Bonds shall have become due or shall have been declared to be due and payable pursuant to this Article, all of those moneys shall be deposited into the Bond Fund and shall be applied to the payment of the principal and interest then due and unpaid upon the Bonds, without preference or priority of principal over interest, of interest over principal, of any installment of interest over any other installment of interest, or of any Bond over any other Bond, ratably, according to the amounts due respectively for principal and interest, to the Holders entitled thereto, without any discrimination or privilege, except as to any difference in the respective rates of interest specified in the Bonds. (c) If the principal of all of the Bonds shall have been declared to be due and payable pursuant to this Article, and if that declaration thereafter shall have been rescinded and annulled under the provisions of Section 7.03 or 7.10 hereof, subject to the provisions of paragraph (b) of this Section in the event that the principal of all of the Bonds shall become due and payable later, the moneys shall be deposited in the Bond Fund and shall be applied in accordance with the provisions of Article III. (d) Whenever moneys are to be applied pursuant to the provisions of this Section, those moneys shall be applied at such times, and from time to time, 51 as the Trustee shall determine, having due regard to the amount of moneys available for application and the likelihood of additional moneys becoming available for application in the future. Whenever the Trustee shall direct the application of those moneys, it shall fix the date upon which the application is to be made, and upon that date, interest shall cease to accrue on the amounts of principal, if any, to be paid on that date, provided the moneys are available therefor. The Trustee shall give notice of the deposit with it of any moneys and of the fixing of that date, all consistent with the requirements of Section 3.04 hereof for the establishment of, and for giving notice with respect to, a Special Record Date for the payment of overdue interest. The Trustee shall not be required to make payment of principal of a Bond to the Holder thereof, until the Bond shall be presented to the Trustee for appropriate endorsement or for cancellation if it is paid fully. Section 7.07 Remedies Vested in Trustee All rights of action (including without limitation, the right to appear on behalf of the Issuer and the Holders of the Bonds in any bankruptcy or insolvency proceeding and to file proof of claims in any such proceeding) under this Indenture or under any of the Bonds may be enforced by the Trustee without the possession of any of the Bonds or the production thereof in any trial or other proceeding relating thereto. Any suit or proceeding instituted by the Trustee shall be brought in its name as Trustee without the necessity of joining any Holders as plaintiffs or defendants. Any recovery of judgment shall be for the benefit of the Holders of the Outstanding Bonds, subject to the provisions of this Indenture. Section 7.08 Rights and Remedies of Holders A Holder shall not have any right to institute any suit, action or proceeding for the enforcement of this Indenture, for the execution of any trust hereof, or for the exercise of any other remedy hereunder, unless: (a) there has occurred and is continuing an Event of Default of which the Trustee has been notified, as provided in paragraph (f) of Section 6.02 hereof, or of which it is deemed to have notice under that paragraph, (b) the Holders of at least 25% in aggregate principal amount of Bonds then outstanding shall have made written request to the Trustee and shall have afforded the Trustee reasonable opportunity to proceed to exercise the remedies, rights and powers granted herein or to institute the suit, action or proceeding in its own name, and shall have offered indemnity to the Trustee as provided in Sections 6.01 and 6.02 hereof, and (c) the Trustee thereafter shall have failed or refused to exercise the remedies, rights and powers granted herein or to institute the suit, action or proceeding in its own name. 52 At the option of the Trustee, that notification (or notice), request, opportunity and offer of indemnity are conditions precedent in every case, to the institution of any suit, action or proceeding described above. No one or more Holders of the Bonds shall have any right to affect, disturb or prejudice in any manner whatsoever the security or benefit of this Indenture by its or their action, or to enforce, except in the manner provided herein, any remedy, right or power hereunder. Any suit, action or proceedings shall be instituted, had and maintained in the manner provided herein for the benefit of the Holders of all Bonds then outstanding. Nothing in this Indenture shall affect or impair, however, the right of any Holder to enforce the payment of the Bond Debt Service Charges on any Bond owned by that Holder at and after the maturity thereof, at the place, from the sources and in the manner expressed in that Bond. Section 7.09 Termination of Proceedings In case the Trustee shall have proceeded to enforce any remedy, right or power under this Indenture in any suit, action or proceedings, and the suit, action or proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Trustee, the Issuer, the Trustee and the Holders shall be restored to their former positions and rights hereunder, respectively, and all rights, remedies and powers of the Trustee shall continue as if no suit, action or proceedings had been taken. Section 7.10 Waivers of Events of Default The Trustee shall waive any Event of Default hereunder and its consequences and may rescind and annul any declaration of maturity of principal of or interest on, the Bonds upon the written request of the Holders of (a) at least a majority in aggregate principal amount of all Bonds then outstanding in respect of which an Event of Default in the payment of Bond Debt Service Charges exists, or (b) at least 25% in aggregate principal amount of all Bonds then outstanding, in the case of any other Event of Default. There shall not be so waived, however, any Event of Default described in paragraph (a) or (b) of Section 7.01 hereof, nor shall any declaration of acceleration in connection therewith be rescinded or annulled, unless at the time of that waiver or rescission and annulment payments of the amounts provided in Section 7.03 hereof for waiver and rescission and annulment in connection with acceleration of maturity have been made or provision has been made therefor. In the case of the waiver or rescission and annulment, or in case any suit, action or proceedings taken by the Trustee on account of any Event of Default shall have been discontinued, abandoned or determined adversely to it, the Issuer, the Trustee and the Holders shall be restored to their former positions and rights hereunder, respectively. No waiver or rescission shall extend to any subsequent or other Event of Default or impair any right consequent thereon. 53 END OF ARTICLE VII 54 ARTICLE VIII SUPPLEMENTAL INDENTURES Section 8.01 Supplemental Indentures Generally The Issuer and the Trustee may enter into indentures supplemental to this Indenture, as provided in this Article and pursuant to the other provisions therefor in this Indenture. Trustee shall deliver copies of all Supplemental Indentures to Borrower and Investor Member. Any subsequent amendment to this Indenture or the Loan Agreement is subject to prior written approval of HUD (so long as the Project is subject to a mortgage insured or held by HUD). No amendment to this Indenture or the Loan Agreement shall conflict with the provisions of the Program Obligations. Section 8.02 Supplemental Indentures Not Requiring Consent of Holders Without the consent of, or notice to, any of the Holders, the Issuer and the Trustee may enter into indentures supplemental to this Indenture for any one or more of the following purposes: (a) To cure any ambiguity, inconsistency or formal defect or omission in this Indenture; (b) To grant to or confer upon the Trustee for the benefit of the Holders any additional rights, remedies, powers or authority that lawfully may be granted to or conferred upon the Holders or the Trustee; (c) To assign additional revenues under this Indenture; (d) To accept additional security and instruments and docurnents of further assurance with respect to the Project; (e) To add to the covenants, agreements and obligations of the Issuer under this Indenture, other covenants, agreements and obligations to be observed for the protection of the Holders, or to surrender or limit any right, power or authority reserved to or conferred upon the Issuer in this Indenture; (f) To evidence any succession to the Issuer and the assumption by its successor of the covenants, agreements and obligations of the Issuer under this Indenture, the Loan Agreement and the Bonds; (g) To permit the Trustee to comply with any obligations imposed upon it by law; (h) To specify further the duties and responsibilities of, and to define further the relationship among, the Trustee, the Registrar and any Authenticating Agents or Paying Agents; 55 (i) To achieve compliance of this Indenture with any applicable federal securities or tax law; 0) To make amendments to the provisions hereof relating to arbitrage matters under Section 148 of the Code, if, in the Opinion of Bond Counsel, those amendments would not cause the interest on the Bonds outstanding to be included in gross income of the Holders for federal income tax purposes, which amendments may, among other things, change the responsibility for making the relevant calculations, provided that in no event shall such amendment delegate to the Trustee, without its consent, in its sole discretion the obligation to make or perform the calculations required under Section 148 of the Code; and (k) To permit any other amendment which, in the judgment of the Trustee, is not materially adverse to the Trustee or the Holders. The provisions of Subsections 8.02(h) and 0) shall not be deemed to constitute a waiver by the Trustee, the Registrar, the Issuer or any Holder of any right which it may have in the absence of those provisions to contest the application of any change in law to this Indenture or the Bonds. Section 8.03 Supplemental Indentures Requiring Consent of Holders Exclusive of Supplemental Indentures to which reference is made in Section 8.02 hereof and subject to the terms, provisions and limitations contained in this Section, and not otherwise, with the consent of the Holders of not less than a majority in aggregate principal amount of the Bonds at the time outstanding, evidenced as provided in this Indenture, and with the consent of the Borrower if required by Section 8.04 hereof, the Issuer and the Trustee may execute and deliver Supplemental Indentures adding any provisions to, changing in any manner or eliminating any of the provisions of this Indenture or any Supplemental Indenture or restricting in any manner the rights of the Holders. Nothing in this Section or Section 8.02 hereof shall permit, however, or be construed as permitting: (a) without the consent of the Holder of each Bond so affected, (i) an extension of the maturity of the principal of or the interest on any Bond or (ii) a reduction in the principal amount of any Bond or the rate of interest thereon, or (b) without the consent of the Holders of all Bonds then outstanding, (i) the creation of a privilege or priority of any Bond or Bonds over any other Bond or Bonds, or (ii) a reduction in the aggregate principal amount of the Bonds required for consent to a Supplemental Indenture. If the Issuer shall request that the Trustee execute and deliver any Supplemental Indenture for any of the purposes of this Section, upon (i) being satisfactorily indemnified with respect to its expenses in connection therewith, and (ii) if required by Section 8.04 hereof, receipt of the Borrower's consent to the proposed execution and delivery of the Supplemental Indenture, the Trustee shall cause notice of the proposed execution and delivery of the Supplemental Indenture to be mailed by first -class mail, postage prepaid, to all Holders of Bonds then 56 outstanding at their addresses as they appear on the Register at the close of business on the fifteenth day preceding that mailing. The Trustee shall not be subject to any liability to any Holder by reason of the Trustee's failure to mail, or the failure of any Holder to receive, the notice required by this Section. Any failure of that nature shall not affect the validity of the Supplemental Indenture when there has been consent thereto as provided in this Section. The notice shall set forth briefly the nature of the proposed Supplemental Indenture and shall state that copies thereof are on file at the designated corporate trust office of the Trustee for inspection by all Holders. If the Trustee shall receive, within a period prescribed by the Borrower, of not less than 60 days, but not exceeding one year, following the mailing of the notice, an instrument or document or instruments or documents, in form to which the Trustee does not reasonably object, purporting to be executed by the Holders of not less than a majority in aggregate principal amount of the Bonds then outstanding (which instrument or document or instruments or documents shall refer to the proposed Supplemental Indenture in the form described in the notice and specifically shall consent to the Supplemental Indenture in substantially that form), the Trustee shall, but shall not otherwise, execute and deliver the Supplemental Indenture in substantially the form to which reference is made in the notice as being on file with the Trustee, without liability or responsibility to any Holder, regardless of whether that Holder shall have consented thereto. Any consent shall be binding upon the Holder of the Bond giving the consent and, anything herein to the contrary notwithstanding, upon any subsequent Holder of that Bond and of any Bond issued in exchange therefor (regardless of whether the subsequent Holder has notice of the consent to the Supplemental Indenture). At any time after the Holders of the required percentage of Bonds shall have filed their consents to the Supplemental Indenture, the Trustee shall make and file with the Issuer a written statement that the Holders of the required percentage of Bonds have filed those consents. That written statement shall be conclusive evidence that the consents have been so filed. If the Holders of the required percentage in aggregate principal amount of Bonds outstanding shall have consented to the Supplemental Indenture, as provided in this Section, no Holder shall have any right (a) to object to (i) the execution or delivery of the Supplemental Indenture, (ii) any of the terms and provisions contained therein, or (iii) the operation thereof, (b) to question the propriety of the execution and delivery thereof, or (c) to enjoin or restrain the Trustee or the Issuer from that execution or delivery or from taking any action pursuant to the provisions thereof. Section 8.04 Consent of Borrower Anything contained herein to the contrary notwithstanding, a Supplemental Indenture executed and delivered in accordance with this Article VIII which affects any rights or obligations of the Borrower shall not become effective unless and until the Borrower shall have consented in writing to the execution and delivery of that Supplemental Indenture. The Trustee shall cause notice of the proposed execution and delivery of any Supplemental Indenture and a copy of the proposed Supplemental Indenture to be mailed to the Borrower, as provided in 57 Section 13.03 hereof, (i) at least 30 days (unless waived by the Borrower) before the date of the proposed execution and delivery in the case of a Supplemental Indenture to which reference is made in Section 8.02 hereof, and (ii) at least 30 days (unless waived by the Borrower) before the giving of the notice of the proposed execution and delivery in the case of a Supplemental Indenture for which provision is made in Section 8.03 hereof. Section 8.05 Authorization to Trustee; Effect of Supplement The Trustee is authorized to join with the Issuer in the execution and delivery of any Supplemental Indenture in accordance with this Article and to make the further agreements and stipulations which may be contained therein. Thereafter, (a) that Supplemental Indenture shall form a part of this Indenture; (b) all terms and conditions contained in that Supplemental Indenture as to any provision authorized to be contained therein shall be deemed to be a part of the terms and conditions of this Indenture for any and all purposes; (c) this Indenture shall be deemed to be modified and amended in accordance with the Supplemental Indenture; and (d) the respective rights, duties and obligations under this Indenture of the Issuer, the Borrower, the Trustee, the Registrar, the Paying Agents, the Authenticating Agents and all Holders of Bonds then outstanding shall be determined, exercised and enforced hereunder in a manner which is subject in all respects to those modifications and amendments made by the Supplemental Indenture. Express reference to any executed and delivered Supplemental Indenture may be made in the text of any Bonds issued thereafter, if that reference is deemed necessary or desirable by the Trustee or the Issuer. A copy of any Supplemental Indenture for which provision is made in this Article, except a Supplemental Indenture described in clause (g) of Section 8.02 hereof, shall be mailed by the Trustee to the Registrar, each Authenticating Agent and Paying Agent. The Trustee shall not be required to execute any supplemental indenture containing provisions adverse to the Trustee. Section 8.06 Opinion of Counsel The Trustee shall be entitled to receive, and shall be fully protected in relying upon, the opinion of any counsel approved by it as conclusive evidence that (i) any proposed Supplemental Indenture complies with the provisions of this Indenture, and (ii) it is proper for the Trustee to join in the execution of that Supplemental Indenture under the provisions of this Article. That counsel may be counsel for the Issuer or the Borrower. Section 8.07 Modification by Unanimous Consent Notwithstanding anything contained elsewhere in this Indenture, the rights and obligations of the Issuer and of the Holders, and the terms and provisions of the Bonds and this 58 Indenture or any Supplemental Indenture, may be modified or altered in any respect with the consent of (i) the Issuer, (ii) the Holders of all of the Bonds then outstanding, (iii) the Borrower; and (iv) if such modification or alteration contains provisions adverse to the Trustee, the Trustee. END OF ARTICLE VIII GE ARTICLE IX DEFEASANCE Section 9.01 Release of Indenture If (i) the Issuer shall pay all of the Outstanding Bonds, or shall cause them to be paid and discharged, or if there otherwise shall be paid to the Holders of the Outstanding Bonds, all Bond Debt Service Charges due or to become due thereon, and (ii) provision also shall be made for the payment of all other sums payable hereunder or under the Loan Agreement, the Regulatory Agreement and the Note, then this Indenture shall cease, determine and become null and void (except for those provisions surviving by reason of Section 9.03 hereof in the event the Bonds are deemed paid and discharged pursuant to Section 9.02 hereof), and the covenants, agreements and obligations of the Issuer hereunder shall be released, discharged and satisfied. Thereupon, and subject to the provisions of Section 9.03 hereof if applicable, (a) the Trustee shall release this Indenture (except for those provisions surviving by reason of Section 9.03 hereof in the event the Bonds are deemed paid and discharged pursuant to Section 9.02 hereof), and shall execute and deliver to the Issuer any instruments or documents in writing as shall be requisite to evidence that release and discharge or as reasonably may be requested by the Issuer, and (b) the Trustee and any other Paying Agents shall assign and deliver to the Issuer any property subject at the time to the lien of this Indenture which then may be in their possession, except amounts in the Bond Fund required (a) to be paid to the Borrower under Section 5.08 hereof, or (b) to be held by the Trustee and the Paying Agents under Section 5.09 hereof or otherwise for the payment of Bond Debt Service Charges. Section 9.02 Payment and Discharge of Bonds All or any part of the Bonds shall be deemed to have been paid and discharged within the meaning of this Indenture, including without limitation, Section 9.01 hereof, if: (a) the Trustee as paying agent and the Paying Agents shall have received, in trust for and irrevocably committed thereto, sufficient moneys, or (b) the Trustee shall have received, in trust for and irrevocably committed thereto, noncallable direct obligations of or obligations guaranteed as to full and timely payment by the United States of America which are certified by an Independent public accounting firm or such other firm experienced with such certifications of national reputation to be of such maturities or redemption dates and interest payment dates, and to bear such interest, as will be sufficient together with any moneys to which reference is made in subparagraph (a) above, without further investment or reinvestment of either the principal amount thereof or the •1 interest earnings therefrom (which earnings are to be held likewise in trust and so irrevocably committed, except as provided herein), for the payment of all Bond Debt Service Charges on those Bonds at their maturity. Any moneys held by the Trustee in accordance with the provisions of this Section may be invested by the Trustee only in noncallable direct obligations of or obligations guaranteed as to full and timely payment by the United States of America having maturity dates, or having redemption dates which, at the option of the Holder of those obligations, shall be not later than the date or dates at which moneys will be required for the purposes described above. To the extent that any income or interest earned by, or increment to, the investments held under this Section is determined from time to time by the Trustee to be in excess of the amount required to be held by the Trustee for the purposes of this Section, that income, interest or increment shall be transferred at the time of that determination in the manner provided in Section 5.08 hereof for transfers of amounts remaining in the Bond Fund. If any Bonds shall be deemed paid and discharged pursuant to this Section 9.02, then within 15 days after such Bonds are so deemed paid and discharged the Trustee shall cause a written notice to be given to each Holder as shown on the Register on the date on which such Bonds are deemed paid and discharged. Such notice shall state the numbers of the Bonds deemed paid and discharged or state that all Bonds are deemed paid and discharged and shall set forth a description of the obligations held pursuant to subparagraph (b) of the first paragraph of this Section 9.02. Section 9.03 Survival of Certain Provisions Notwithstanding the foregoing, any provisions of the Bond Resolution and this Indenture which relate to the maturity of Bonds, interest payments and dates thereof, exchange, transfer and registration of Bonds, replacement of mutilated, destroyed, lost or stolen Bonds, the safekeeping and cancellation of Bonds, the storage and shredding of cancelled Bonds, non - presentment of Bonds, the holding of moneys in trust, and repayments to the Borrower from the Bond Fund, the rebate of moneys to the United States in accordance with Section 5.09 hereof, and the rights and duties of the Trustee and the Registrar in connection with all of the foregoing, shall remain in effect and be binding upon the Trustee, the Registrar, the Authenticating Agents, Paying Agents and the Holders notwithstanding the release and discharge of this Indenture. The provisions of this Article shall survive the release, discharge and satisfaction of this Indenture. The obligations of the Borrower to pay the Trustee its fees and expenses hereunder shall survive the release, discharge and satisfaction of this Indenture. END OF ARTICLE IX 61 ARTICLE X COVENANTS AND AGREEMENTS OF THE ISSUER Section 10.01 Covenants and Agreements of the Issuer In addition to any other covenants and agreements of the Issuer contained in the Loan Agreement, this Indenture or the Bond Resolution, the Issuer further covenants and agrees with the Holders and the Trustee as follows: (a) Payment of Bond Debt Service Charges. The Issuer will pay all Bond Debt Service Charges, or cause them to be paid, solely from the sources provided herein, on the dates, at the places and in the manner provided in this Indenture. (b) Issuer Revenues and Assignment of Issuer Revenues. The Issuer will not assign the Issuer Revenues or create or authorize to be created any debt, lien or charge thereon, other than the assignment thereof under this Indenture. (c) Issuer Not to Adversely Affect Exclusion From Gross Income of Interest on Bonds. The Issuer covenants that it (i) will take, or require to be taken, at the written direction of any Holder or the Trustee, and at the expense of the Borrower, all actions that may be required of the Issuer for the interest on the Bonds to be and remain excluded from gross income for federal income tax purposes, and (ii) will not take or authorize to be taken any actions that would, to its actual knowledge, adversely affect that exclusion under the provisions of the Code. (d) Patriot Act. The Issuer covenants and agrees to provide documentation as reasonably requested or required by the Trustee to enable the Trustee to satisfy the requirements of the USA Patriot Act as described in Section 13.13 of this Indenture. Section 10.02 Observance and Performance of Covenants, Agreements, Authority and Actions The Issuer will observe and perform faithfully at all times all covenants, agreements, authority, actions, undertakings, stipulations and provisions to be observed or performed on its part under the Loan Agreement, this Indenture, the Bond Resolution, the Regulatory Agreement and the Bonds which are executed, authenticated and delivered under this Indenture, and under all proceedings of its governing body pertaining thereto. The Issuer represents and warrants that (a) It is duly authorized by the Constitution and laws of the State, including particularly and without limitation the Act, to issue the Bonds, to execute and deliver this Indenture, the Loan Agreement and the Regulatory 62 Agreement and to provide the security for payment of the Bond Debt Service Charges in the manner and to the extent set forth in this Indenture. (b) All actions required on its part to be performed for the issuance, sale and delivery of the Bonds and for the execution and delivery of this Indenture and the Loan Agreement have been taken duly and effectively. (c) The Bonds will be valid and enforceable special obligations of the Issuer according to their terms. Section 10.03 Trustee May Enforce Issuer's Rights The Trustee may enforce, in its name or in the name of the Issuer, all rights of the Issuer for and on behalf of the Holders, except for Unassigned Issuer's Rights, and may enforce all covenants, agreements and obligations of the Borrower under and pursuant to the Loan Agreement, regardless of whether the Issuer is in default in the pursuit or enforcement of those rights, covenants, agreements or obligations. The Issuer, however, will do all things and take all actions on its part necessary to comply with covenants, agreements, obligations, duties and responsibilities on its part to be observed or performed under the Loan Agreement, and will take all actions within its authority to keep the Loan Agreement in effect in accordance with the terms thereof. END OF ARTICLE X 63 ARTICLE XI AMENDMENTS TO AGREEMENT, REGULATORY AGREEMENT AND NOTE Section 11.01 Amendments Not Requiring Consent of Holders Without the consent of or notice to the Holders, the Issuer, the Borrower and the Trustee may consent to any amendment, change or modification of the Loan Agreement, the Regulatory Agreement or the Note as may be required (i) by the provisions of the Loan Agreement, the Regulatory Agreement or this Indenture, (ii) for the purpose of curing any ambiguity, inconsistency or formal defect or omission in the Loan Agreement, the Regulatory Agreement or the Note, (iii) in connection with an amendment or to effect any purpose for which there could be an amendment of this Indenture pursuant to Section 8.02 hereof, or (iv) in connection with any other change therein which is not materially adverse to the Trustee or the Holders of the Bonds, in the judgment of the Trustee, applying the standards described in Sections 6.01 and 6.02 hereof. Any subsequent amendment to this Indenture or the Loan Agreement is subject to prior written approval of HUD (so long as the Project is subject to a mortgage insured or held by HUD). No amendment to this Indenture or the Loan Agreement shall conflict with the provisions of the Program Obligations. Section 11.02 Amendments Requiring Consent of Holders Except for the amendments, changes or modifications contemplated in Section 11.01 hereof, neither the Issuer nor the Trustee shall consent to (a) any amendment, change or modification of the Loan Agreement or the Note which would change the amount or time as of which Loan Payments are required to be paid, without the giving of notice as provided in this Section of the proposed amendment, change or modification and receipt of the written consent thereto of the Holders of all of the then Outstanding Bonds affected by such amendment, change or modification, or (b) any other amendment, change or modification of the Loan Agreement, the Regulatory Agreement or the Note without the giving of notice as provided in this Section of the proposed amendment, change or modification and receipt of the written consent thereto of the Holders of not less than a majority in aggregate principal amount of the Bonds then Outstanding affected by such amendment, change or modification. The consent of the Holders shall be obtained as provided in Section 8.03 hereof with respect to Supplemental Indentures. If the Issuer or the Authorized Borrower Representative shall request at any time the consent of the Trustee to any proposed amendment, change or modification of the Loan Agreement, the Regulatory Agreement or the Note contemplated in subparagraphs (a) or (b) of 64 this Section, upon being indemnified satisfactorily with respect to expenses, the Trustee shall cause notice of the proposed amendment, change or modification to be provided in the manner which is required by Section 8.03 hereof with respect to notice of Supplemental Indentures. The notice shall set forth briefly the nature of the proposed amendment, change or modification and shall state that copies of the instrument or document embodying it are on file at the designated corporate trust office of the Trustee for inspection by all Holders. END OF ARTICLE XI 65 ARTICLE XII MEETINGS OF HOLDERS Section 12.01 Purposes of Meetings A meeting of Holders may be called at any time and from time to time pursuant to the provisions of this Article XII, to take any action (i) authorized to be taken by or on behalf of the Holders of any specified aggregate principal amount of the Bonds, (ii) under any provision of this Indenture or (iii) authorized or permitted by law. Section 12.02 Call of Meetings The Trustee may (but shall not be obligated to) call at any time a meeting of Holders pursuant to Section 12.01 to be held at any reasonable time and place the Trustee shall determine. Notice of such meeting, setting forth the time, place and generally the subject thereof, shall be mailed by first -class mail, postage prepaid, not fewer than 15 nor more than 90 days prior to the date of the meeting to the Holders at their addresses as they appear on the Register on the fifteenth day preceding such mailing, which fifteenth day, preceding the mailing, shall be the record date for the meeting. At any time, the Issuer or the Borrower, or the Holders of at least 25% in aggregate principal amount of the Bonds then outstanding, shall have requested the Trustee to call a meeting of Holders, by written request setting forth the purpose of the meeting, and the Trustee shall not have mailed the notice of the meeting within 20 days after receipt of the request, then the Issuer, the Borrower, the Investor Member or the Holders of Bonds in the amount above specified may determine the time and the place of the meeting and may call the meeting to take any action authorized in Section 12.01, by mailing notice thereof as provided above. Any meetings of Holders shall be valid without notice, if the Holders of all Bonds then outstanding are present in person or by proxy, or if notice is waived before or after the meeting by the Holders of all Bonds outstanding who were not so present at the meeting, and if the Issuer, the Borrower and the Trustee are either present by duly authorized representatives or have waived notice, before or after the meeting. Section 12.03 Voting To be entitled to vote at any meeting of Holders, a Person shall (a) be a Holder of one or more outstanding Bonds as of the record date for the meeting as determined above, or (b) be a person appointed by an instrument or document in writing as proxy by a Person who is a Holder as of the record date for the meeting, of one or more outstanding Bonds. Each Holder or proxy shall be entitled to one vote for each $100,000 principal amount of Bonds held or represented by it. The vote upon any resolution submitted to any meeting of Holders shall be by written ballots on which shall be subscribed the signatures of the Holders of Bonds or of their representatives by proxy and the identifying number or numbers of the Bonds held or represented by them. :: Section 12.04 Meetings Notwithstanding any other provisions of this Indenture, the Trustee may make any reasonable regulations which it may deem to be advisable for meetings of Holders, with regard to (a) proof of the holding of Bonds and of the appointment of proxies, (b) the appointment and duties of inspectors of votes, (c) recordation of the proceedings of those meetings, (d) the execution, submission and examination of proxies and other evidence of the right to vote, and (e) any other matters concerning the conduct, adjournment or reconvening of meetings which it may think fit. The Trustee shall appoint a temporary chair of the meeting by an instrument or document in writing, unless the meeting shall have been called by the Issuer, the Borrower or by the Holders, as provided in Section 12.02, in which case the Issuer, the Borrower or the Holders calling the meeting, as the case may be, shall appoint a temporary chair in like manner. A permanent chair and a permanent secretary of the meeting shall be elected by vote of the Holders of a majority in principal amount of the Bonds represented at the meeting and entitled to vote. The only Persons who shall be entitled to be present or to speak at any meeting of Holders shall be the Persons entitled to vote at the meeting and their counsel, any representatives of the Trustee or Registrar and their counsel, any representatives of the Issuer and its counsel and any representatives of the Borrower and its counsel. Section 12.05 Miscellaneous Nothing contained in this Article XII shall be deemed or construed to authorize or permit any hindrance or delay in the exercise of any right or rights conferred upon or reserved to the Trustee or to the Holders under any of the provisions of this Indenture or of the Bonds by reason of any call of a meeting of Holders or any rights conferred expressly or impliedly hereunder to make a call. END OF ARTICLE XII 67 ARTICLE XIII MISCELLANEOUS Section 13.01 Limitation of Riots With the exception of rights conferred expressly in this Indenture, nothing expressed or mentioned in or to be implied from this Indenture or the Bonds is intended or shall be construed to give to any Person other than the parties hereto, the Registrar, the Authenticating Agents, the Paying Agents, the Borrower, the Investor Member and the Holders of the Bonds any legal or equitable right, remedy, power or claim under or with respect to this Indenture or any covenants, agreements, conditions and provisions contained herein. This Indenture and all of those covenants, agreements, conditions and provisions are intended to be, and are, for the sole and exclusive benefit of the parties hereto, the Registrar, the Paying Agent, the Authenticating Agent, the Borrower, the Investor Member and the Holders of the Bonds, as provided herein. Section 13.02 Severability In case any section or provision of this Indenture, or any covenant, agreement, stipulation, obligation, act or action, or part thereof, made, assumed, entered into or taken under this Indenture, or any application thereof, is held to be illegal or invalid for any reason, or is inoperable at any time, that illegality, invalidity or inoperability shall not affect the remainder thereof or any other section or provision of this Indenture or any other covenant, agreement, stipulation, obligation, act or action, or part thereof, made, assumed, entered into or taken under this Indenture, all of which shall be construed and enforced at the time as if the illegal, invalid or inoperable portion were not contained therein. Any illegality, invalidity or inoperability shall not affect any legal, valid and operable section, provision, covenant, agreement, stipulation, obligation, act, action, part or application, all of which shall be deemed to be effective, operative, made, assumed, entered into or taken in the manner and to the full extent permitted by law from time to time. Section 13.03 Notices It shall be sufficient service or giving of any notice, request, complaint, demand or other instrument or document, if mailed by registered or certified mail, postage prepaid, or forwarded by overnight courier service, delivery charges prepaid (receipt of which to be evidenced by a signed receipt from such overnight delivery service), or sent by facsimile which produces evidence of transmission, addressed to the appropriate party at its Notice Address. Such notice or other communication shall be deemed given on (i) the third (3rd) Business Day following deposit thereof in the mail when mailed by registered or certified mail, (ii) the Business Day immediately following deposit thereof with the overnight courier service when forwarded by an overnight courier service, and (iii) the Business Day immediately following the date specified in the written evidence of electronic transmission. The Issuer, Trustee, the Borrower, the Investor Limited Partner may, by notice given as provided in this paragraph, designate any further or different address to which subsequent notices or other communication shall be sent. 68 Any notice given pursuant to Sections 6.09, 6.13, 7.02, 7.03, 8.02, 8.03, 9.02 and 11.02 shall be simultaneously given to the Rating Agency, if and so long as the Bonds are rated. The foregoing parties may designate, by written notice given hereunder, any further or different addresses to which any subsequent notice, request, complaint, demand or other instrument or document shall be sent. The Trustee shall designate, by written notice to the Issuer, the Borrower and the Investor Limited Partner, the addresses to which notices or copies thereof shall be sent to the Registrar, the Authenticating Agents and the Paying Agents. In addition to the foregoing, the Trustee hereby agrees to send written notice to the Rating Agency, if and so long as the Bonds are rated, upon the occurrence of any of the following events: (1) any change in the Trustee; (2) any amendment to the documents; (3) a payment of all principal and interest on all of the Bonds; or (4) any defeasance or acceleration of the Bonds. In connection with any notice mailed pursuant to the provisions of this Indenture, a certificate of the Trustee, the Issuer, the Registrar, the Authenticating Agents, the Borrower, the Investor Member or the Holders of the Bonds, whichever or whoever mailed that notice, that the notice was so mailed shall be conclusive evidence of the proper mailing of the notice. Section 13.04 Suspension of Mail and Courier Service If because of the suspension of delivery of registered or certified mail or delivery by overnight courier services, the Trustee shall be unable to mail by registered or certified mail or forward by overnight courier service any notice required to be given by the provisions of this Indenture, the Trustee shall use its best efforts to give such notice in such other manner as in the judgment of the Trustee shall most effectively approximate the required mailing or forwarding thereof, and the giving of that notice in that manner for all purposes of this Indenture shall be deemed to be in compliance with the requirements of Section 13.03 hereof. Except as otherwise provided herein, the mailing of any notice by first class mail, postage prepaid, shall be deemed given on the third (3`d) Business Day after upon deposit of that notice in the mail and the giving of any notice by any other means of delivery shall be deemed complete upon receipt of the notice by the delivery service. Section 13.05 Payments Due on Saturdays, Sundays and Holidays If any Interest Payment Date or a date of maturity of the principal of any Bonds is a Saturday, Sunday or a day on which (i) the Trustee is required, or authorized or not prohibited, by law (including without limitation, executive orders) to close and is closed, then payment of interest and principal need not be made by the Trustee or the Paying Agent on that date, but that payment may be made on the next succeeding business day on which the Trustee and the Paying Agent are open for business with the same force and effect as if that payment were made on the Interest Payment Date or date of maturity, and no interest shall accrue for the period after that date, or (ii) a Paying Agent is required, or authorized or not prohibited, by law (including without limitation, executive orders) to close and is closed, then payment of interest and principal need not be made by that Paying Agent on that date, but that payment may be made on the next succeeding business day on which that Paying Agent is open for business with the same force and effect as if that payment were made on the Interest Payment Date or date of maturity and no interest shall accrue for the period after that date, provided that if the Trustee is open for business on the applicable Interest Payment Date or date of maturity, it shall make any payment required hereunder with respect to payment of interest on outstanding Bonds and payment of principal of the Bonds presented to it for payment, regardless of whether the Paying Agent shall be open for business or closed on the applicable Interest Payment Date or date of maturity. Section 13.06 Instruments of Holders Any writing, including without limitation, any consent, request, direction, approval, objection or other instrument or document, required under this Indenture to be executed by any Holder may be in any number of concurrent writings of similar tenor and may be executed by that Holder in person or by an agent or attorney appointed in writing. Proof of (i) the execution of any writing, including without limitation, any consent, request, direction, approval, objection or other instrument or document, (ii) the execution of any writing appointing any agent or attorney, and (iii) the ownership of Bonds, shall be sufficient for any of the purposes of this Indenture, if made in the following manner, and if so made, shall be conclusive in favor of the Trustee with regard to any action taken thereunder, namely: (a) The fact and date of the execution by any person of any writing may be proved by the certificate of any officer in any jurisdiction, who has power by law to take acknowledgments within that jurisdiction, that the person signing the writing acknowledged that execution before that officer, or by affidavit of any witness to that execution; and (b) The fact of ownership of Bonds shall be proved by the Register maintained by the Registrar. Nothing contained herein shall be construed to limit the Trustee to the foregoing proof, and the Trustee may accept any other evidence of the matters stated therein which it deems to be sufficient. Any writing, including without limitation, any consent, request, direction, approval, objection or other instrument or document, of the Holder of any Bond shall bind every future Holder of the same Bond, with respect to anything done or suffered to be done by the Issuer, the Borrower, the Trustee, the Registrar or the Paying Agent or Authenticating Agent pursuant to that writing. Section 13.07 Priority of this Indenture This Indenture shall be superior to any liens which may be placed upon the Issuer Revenues or any other funds or accounts created pursuant to this Indenture. Section 13.08 Extent of Covenants; No Personal Liability All covenants, stipulations, obligations and agreements of the Issuer contained in this Indenture are and shall be deemed to be covenants, stipulations, obligations and agreements of the Issuer to the full extent authorized by the Act and permitted by the Constitution of the State. No covenant, stipulation, obligation or agreement of the Issuer contained in this Indenture shall be deemed to be a covenant, stipulation, obligation or agreement of any present or future member, officer, agent or employee of the Issuer or the governing body of the Issuer in other than that person's official capacity. Neither the members of the governing body of the Issuer nor any official executing the Bonds, this Indenture, the Loan Agreement or any amendment or 70 supplement hereto or thereto shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance or execution hereof or thereof. Section 13.09 Binding Effect This Indenture shall inure to the benefit of and shall be binding upon the Issuer and the Trustee and their respective successors and assigns, subject, however, to the limitations contained herein. Section 13.10 Counterparts This Indenture may be executed in any number of counterparts, each of which shall be regarded as an original and all of which shall constitute but one and the same instrument. Section 13.11 Governing Law This Indenture and the Bonds shall be deemed to be contracts made under the laws of the State and for all purposes shall be governed by and construed in accordance with the laws of the State. Section 13.12 Security Advice Waiver The Issuer acknowledges that regulations of the Comptroller of the Currency grant the Borrower the right to receive brokerage confirmations of the security transactions as they occur. The Borrower specifically waives such notification to the extent permitted by law and will receive periodic cash transaction statements that will detail all investment transactions. Section 13.13 Patriot Act To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. For a non - individual person such as a business entity, a charity, a trust or other legal entity the Trustee will request documentation to verify its formation and existence as a legal entity. Furthermore, if required by the Patriot Act, Trustee may request financial statements, licenses, identification and authorization documents from individuals claiming authority to represent the entity or other relevant documentation. Section 13.14 FHA Federal Laws and Requirements Control Notwithstanding anything in this Indenture or the Loan Agreement to the contrary: (a) Borrower, Trustee and Issuer acknowledge that this Indenture, and any obligations of Borrower hereunder, are subject and subordinate to the FHA Loan Documents. Notwithstanding any provision in this Indenture to the contrary, no obligations of the Borrower or hereunder shall be payable except from (A) Surplus Cash (as defined in the HUD Regulatory Agreement) or (B) funds that are not derived from (i) revenues of the Project (as defined in the FHA Mortgage), or (ii) any reserve or deposit made with the FHA Lender or any other 71 party as required by HUD in connection with the FHA Loan Documents, or (C) any proceeds of the FHA Note (collectively, "Non- Project Sources "). No claims or actions shall be made (or payable) under this Indenture against the Project, the FHA Lender, the proceeds of the FHA Note, or the assets of the Borrower, except for Surplus Cash of the Borrower. In addition, the rights and obligations of the parties under this Indenture and all other documents evidencing, implementing, or securing this Indenture (collectively, the "Subordinate Bond Documents ") are and shall be subordinated in all respects rights and obligations of the parties to and under the FHA Loan Documents. In the event of any conflict between the provisions of (i) this Indenture or the Subordinate Bond Documents and (ii) the provisions of the FHA Loan Documents or the Program Obligations (as defined in the FHA Mortgage), the provisions of the FHA Loan Documents or the Program Obligations shall control. The provisions of this Section 13.14 shall control over any inconsistent provisions in this Indenture or the Subordinate Bond Documents. (b) Any subsequent amendment to this Indenture or the Loan Agreement is subject to prior written approval of HUD (so long as the Project is subject to a mortgage insured or held by HUD). No amendment to this Indenture or the Loan Agreement shall conflict with the provisions of the Program Obligations. (c) The Bonds are not a debt of the United States of America, HUD, FHA, GNMA or any other agency or instrumentality of the federal government, and are not guaranteed by the full faith and credit of the United States or any agency or instrumentality thereof. (d) There is no pledge hereunder or under the Loan Agreement of the gross revenues or any of the assets of the Project. (e) Neither a default under this Indenture nor under the Loan Agreement shall constitute a default under the FHA Loan Documents related to the Project. (f) Nothing contained herein or in the Loan Agreement shall inhibit or impair the right of FHA to require or agree to any amendment, change or modification of any FHA Loan Documents related to the Project for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective or inconsistent provision contained therein, or in regard to matters or questions arising under said FHA Loan Documents so long as any such amendment, change or modification shall not adversely affect the payment terms of the Bonds. (g) Neither the Issuer, the Trustee, nor any of the Holders has or shall be entitled to assert any claim against the Project, any reserves or deposits required by HUD in connection with the Project, or the rents or deposits or other income of the Project. 72 (h) Proceeds from any condemnation award or from the payment of a claim under any hazard insurance policy relating to the Project will not be payable to the Trustee, but will be payable in accordance with the FHA Loan Documents. END OF ARTICLE XIII 73 IN WITNESS WHEREOF, the Issuer and the Trustee have caused this Trust Indenture to be executed and delivered by duly authorized officers thereof as of the day and year first written above. CITY OF EDINA, MINNESOTA By: Mayor By: City Manager [ISSUER SIGNATURE PAGE TO TRUST INDENTURE] S -1 U.S. BANK NATIONAL ASSOCIATION, as Trustee and Registrar of the Bonds Authorized Officer [TRUSTEE SIGNATURE PAGE TO TRUST INDENTURE] S -2 NO. R- EXHIBIT A SERIES 2014A BOND FORM UNITED STATES OF AMERICA STATE OF MINNESOTA CITY OF EDINA MULTIFAMILY HOUSING REVENUE BOND (YORKTOWN CONTINENTAL, LP PROJECT), SERIES 2014A INTEREST RATE: MATURITY DATE: DATED AS OF: CUSIP: % 1, 20 REGISTERED OWNER: CEDE & CO. PRINCIPAL AMOUNT: AND 00 /100 DOLLARS The City of Edina, Minnesota (the "Issuer "), a body corporate and politic of the State of Minnesota, for value received, promises to pay to the Registered Owner specified above or registered assigns, but solely from the sources and in the manner referred to herein, the principal amount on the maturity date specified above (subject to optional redemption set forth herein), which shall be equal to $ , and to pay from those sources interest thereon at the aforesaid interest rate on each 1 and 1 (each an "Interest Payment Date "), commencing — 1,20 _ until the principal amount is paid or duly provided for. This Bond will bear interest from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid or duly provided for, from its date of delivery. The principal of this Bond is payable upon presentation and surrender hereof at the designated corporate trust office of the trustee, presently U.S. Bank National Association, in St. Paul, Minnesota (the "Trustee "). Interest is payable on each Interest Payment Date by check or draft mailed to the person in whose name this Bond (or one or more predecessor bonds) is registered (the "Holder ") at the close of business on the 15th day of the calendar month next preceding that Interest Payment Date (the "Regular Record Date ") on the registration books for this issue maintained by the Trustee, as Registrar, at the address appearing therein. Any interest which is not timely paid or duly provided for shall cease to be payable to the Holder hereof (or of one or more predecessor bonds) as of the Regular Record Date, and shall be payable to the Holder hereof (or of one or more predecessor bonds) at the close of business on a Special Record Date to be fixed by the Trustee for the payment of that overdue interest. Notice of the Special Record Date shall be mailed to Holders not less than ten days prior thereto. The principal of and A -1 interest on this Bond are payable in lawful money of the United States of America, without deduction for the services of the paying agent. While the Bonds are held in a book -entry system and in certain other circumstances, all as provided in the Indenture, principal of and interest on this Bond is required to be paid by wire transfer or other arrangement, other than any payment of the entire unpaid principal amount hereof. THE BONDS ARE SPECIAL, LIMITED OBLIGATIONS OF THE ISSUER, PAYABLE SOLELY OUT OF THE REVENUES, RECEIPTS AND OTHER MONEYS PLEDGED THEREFOR UNDER THE INDENTURE. THE BONDS ARE NOT A DEBT OR BONDED INDEBTEDNESS OF THE STATE, THE ISSUER OR OF ANY OTHER POLITICAL SUBDIVISION OF THE STATE, AND NEITHER THE STATE, THE ISSUER NOR ANY OTHER POLITICAL SUBDIVISION OF THE STATE IS LIABLE FOR THE PAYMENT OF THE BONDS. NEITHER THE FAITH AND CREDIT OF THE STATE, THE ISSUER NOR OF ANY OTHER POLITICAL SUBDIVISION OF THE STATE ARE PLEDGED TO THE PAYMENT OF THE PRINCIPAL OR OF INTEREST ON THE BONDS. This Bond is one of a duly authorized issue of Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project) Series 2014A (the "Bonds "), issuable under the Trust Indenture dated as of July 1, 2014 (the "Indenture "), between the Issuer and the Trustee, aggregating in principal amount [$16,500,000.00] and issued for the purpose of making a loan (the "Loan ") to the Borrower described therein (the "Borrower ") to pay a portion of the costs of acquiring, rehabilitating, equipping and improving the Project, as defined in the Indenture and the Loan Agreement dated as of even date with the Indenture (the "Loan Agreement "), between the Issuer and the Borrower. The Bonds are special obligations of the Issuer, issued or to be issued under and are to be secured and entitled equally and ratably to the protection given by the Indenture. The Bonds are issued pursuant to, under authority of and in compliance with the laws of the State of Minnesota, and including without limitation, Minnesota Statutes, Chapters 462A, 462C and 474A as amended (the "Act "), and a resolution duly enacted by the governing body of the Issuer. The Bonds are subject to optional redemption prior to their stated maturity on or after , at par as set forth in the Indenture. Upon presentation and surrender of the Bonds by the Holder on the date fixed for redemption, the Holder shall be paid the principal amount of the Bonds to be redeemed, plus accrued interest on such Bonds to the redemption date. Reference is made to the Indenture for a more complete description of the Project, the provisions, among others, with respect to the nature and extent of the security for the Bonds, the rights, duties and obligations of the Issuer, the Trustee and the Holders of the Bonds, and the terms and conditions upon which the Bonds are issued and secured. Each Holder assents, by its acceptance hereof, to all of the provisions of the Indenture. Pursuant to the Loan Agreement, the Borrower has executed and delivered to the Trustee the Borrower's promissory note dated of even date herewith (the "Series 2014A Note "), in the principal amount up to $ . The Borrower is required by the Loan Agreement and the Series 2014A Note to make payments to the Trustee in the amounts and at the times necessary to pay the principal of and interest (the "Bond Debt Service Charges ") on the Bonds. A -2 In the Indenture, the Issuer has assigned to the Trustee, to provide for the payment of the Bond Debt Service Charges on the Bonds, the Issuer's right, title and interest in and to the Loan Agreement, except for Unassigned Issuer's Rights as defined in the Loan Agreement. To secure its compliance with certain covenants in the Loan Agreement, the Borrower has executed and delivered the Declaration of Restrictive Covenants (the "Regulatory Agreement ") between itself, the Issuer and the Trustee dated as of even date with the Indenture. Copies of the Indenture, the Loan Agreement, the Regulatory Agreement and the Series 2014A Note are on file in the principal corporate trust office of the Trustee. The Bond Debt Service Charges on the Bonds are payable solely from the Issuer Revenues, as defined and as provided in the Indenture (being, generally, the amounts payable under the Loan Agreement and the Series 2014A Note in repayment of the loan, deposits to the Collateral Fund and any unexpended proceeds of the Bonds), and are an obligation of the Issuer only to the extent of the Issuer Revenues. The Bonds are not secured by an obligation or pledge of any moneys raised by taxation and do not represent or constitute a debt or pledge of the faith and credit of the Issuer. The Bonds are issuable only as fully registered bonds and, except as hereinafter provided, in printed or typewritten form, registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York ( "DTC "), which shall be considered to be the Holder for all purposes of the Indenture, including, without limitation, payment by the Issuer of Bond Debt Service Charges, and receipt of notices to, giving of consents by and exercise of rights of, Holders. There shall be a single Bond representing each maturity, and all Bonds shall be immobilized in the custody of DTC with the owners of beneficial interests in those Bonds (the "book entry interests ") having no right to receive from the Issuer Bonds in the form of physical securities or certificates. Ownership of book entry interests in the Bonds shall be shown by book entry on the system maintained and operated by DTC, its participants (the "Participants ") and certain persons acting through the Participants, and transfers of ownership of book entry interests shall be made only by that book entry system, the Issuer and the Trustee having no responsibility therefor. DTC is to maintain records of the positions of Participants in the Bonds, and the Participants and persons acting through Participants are to maintain records of the purchasers and owners of book entry interests in the Bonds. The Bonds as such shall not be transferable or exchangeable, except for transfer to another Depository (as defined in the Indenture) or to another nominee of a Depository, without further action by the Issuer and otherwise at the expense of the Borrower. If any Depository determines not to continue to act as a Depository for the Bonds for use in a book entry system, the Issuer may attempt to have established a securities depository/book entry system relationship with another qualified Depository under the Indenture. If the Issuer does not or is unable to do so, the Issuer and the Trustee, after the Trustee has made provision for notification of the owners of book entry interests by the then Depository, shall permit withdrawal of the Bonds from the Depository, and authenticate and deliver Bond certificates in fully registered form (in denominations of $5,000, or any integral multiple thereof) to the assignees of the Depository or its nominee, all at the cost and expense (including costs of printing or otherwise preparing and delivering replacement Bond certificates) of those persons requesting A -3 such authentication and delivery, if the event is not the result of Issuer action or inaction (including action at the request of the Borrower). The Indenture permits certain amendments or supplements to the Indenture, the Loan Agreement, the Regulatory Agreement and the Series 2014A Note not prejudicial to the Holders to be made without the consent of or notice to the Holders, and certain other amendments or supplements thereto to be made with the consent of the Holders of not less than a majority in aggregate principal amount of the Bonds then outstanding. The Holder of each Bond has only those remedies provided in the Indenture. The Bonds shall not constitute the personal obligation, either jointly or severally, of the members of the governing body of the Issuer or of any other officer of the Issuer. This Bond shall not be entitled to any security or benefit under the Indenture or be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed. It is certified and recited that there have been performed and have happened in regular and due form, as required by law, all acts and conditions necessary to be done or performed by the Issuer or to have happened (i) precedent to and in the issuing of the Bonds in order to make them legal, valid and binding special obligations of the Issuer, and (ii) precedent to and in the execution and delivery of the Indenture and the Loan Agreement; that payment in full for the Bonds has been received; and that the Bonds do not exceed or violate any constitutional or statutory limitation. This Bond shall not be entitled to any security or benefit under the Indenture or be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been signed. IN WITNESS OF THE ABOVE, the Issuer has caused this Bond to be to be executed and delivered by duly authorized officers thereof as of the day and year first written above. A -4 IN WITNESS WHEREOF, the City of Edina, Minnesota has caused this Bond to be executed with the manual or facsimile signature of its Mayor and City Manager. CITY OF EDINA, MINNESOTA By: Mayor By: City Manager A -5 CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within - mentioned Indenture. Date of Registration and Authentication: July _, 2014. U.S. BANK NATIONAL ASSOCIATION, Trustee Authorized Officer M ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and irrevocably constitutes and appoints attorney to transfer that Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature Guaranteed: Signature guarantee shall be made by a guarantor institution participating in the Securities Transfer Agent Medallion Program or in such other guarantee program acceptable to the Registrar. Please insert social security number or other tax identification number of transferee Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. . Unless this certificate is presented by an authorized representative of The Depository Trust Company (55 Water Street, New York, New York) to the Issuer or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of The Depository Trust Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein. A -7 Draft 6/20/14 INDENTURE OF TRUST BY AND BETWEEN CITY OF EDINA, MINNESOTA, as Issuer ner17 U.S. BANK NATIONAL ASSOCIATION, as Trustee Dated as of July 1, 2014 Relating to: CITY OF EDINA, MINNESOTA MULTIFAMILY HOUSING REVENUE BONDS (YORKTOWN CONTINENTAL, LP PROJECT), SERIES 2014B This instrument drafted by: Dorsey & Whitney LLP 50 South Sixth Street Minneapolis, Minnesota 55402 TABLE OF CONTENTS PAGE ARTICLE 1 Definitions, Exhibits and General Provisions Section1.1 Definitions ........................................................................................... ..............................4 Section 1.2 Rules of Interpretation ........................................................................ .............................13 ARTICLE 2 The Bonds Section 2.1 Authorized Amount and Form of Bonds ............................................ .............................14 Section2.2 Initial Issue .......................................................................................... .............................14 Section2.3 Execution ............................................................................................ .............................15 Section 2.4 Authentication ..................................................................................... .............................15 Section 2.5 Delivery of Initial Issue ...................................................................... .............................15 Section 2.6 Mutilated, Lost, Stolen or Destroyed Bonds ....................................... .............................16 Section 2.7 Ownership of Bonds ........................................................................... .............................16 Section 2.8 Preparation of Bonds .......................................................................... .............................16 Section 2.9 Registration, Transfer and Exchange of Bonds .................................. .............................16 Section 2.10 Interest Rights Preserved .................................................................... .............................18 Section 2.11 Cancellation of Bonds ......................................................................... .............................18 Section 2.12 Book -Entry System ............................................................................. .............................18 Section 2.13 Termination of Book -Entry Only System ......................................... ............................... 19 ARTICLE 3 Redemption of Bonds Before Maturity Section 3.1 Redemption Provisions ....................................................................... .............................20 Section 3.2 Partial Redemption of Bonds .............................................................. .............................20 Section 3.3 Procedure for Redemption .................................................................. .............................21 Section 3.4 Payment of Bonds Upon Redemption ................................................. .............................22 Section 3.5 No Partial Redemption After Default ................................................. .............................22 Section3.6 Cancellation ........................................................................................ .............................22 ARTICLE 4 General Covenants Section 4.1 Payment of Principal, Premium and Interest ...................................... .............................23 Section 4.2 Performance of and Authority for Covenants ..................................... .............................23 Section 4.3 Instruments of Further Assurance ....................................................... .............................23 Section 4.4 Recording and Filing .......................................................................... .............................23 Section 4.5 Books and Records ............................................................................. .............................23 Section 4.6 Bondholders' Access to Bond Register ............................................ .............................23 Section 4.7 Rights Under Loan Agreement ........................................................... .............................23 ARTICLE 5 Funds and Accounts Section 5.1 "Trust Money„ Defined ...................................................................... .............................25 Section5.2 Project Fund ........................................................................................ .............................25 Section5.3 Bond Fund ........................................................................................... .............................25 Section 5.4 Capitalized Interest Fund .................................................................... .............................27 Section5.5 Rebate Fund ........................................................................................ .............................27 Section 5.6 Deposit of Funds with Paying Agent .................................................. .............................27 ARTICLE 6 Investments Section 6.1 Investments by Trustee ....................................................................... .............................29 Section 6.2 Return on Investments ........................................................................ .............................29 Section 6.3 Computation of Balances in Funds ..................................................... .............................30 Section 6.4 Rebate to United States ....................................................................... .............................30 ARTICLE 7 Discharge of Lien Section 7.1 Payment of Bonds; Satisfaction and Discharge of Bonds and Obligation to Bondholders .................................................................. .............................31 Section 7.2 Discharge of the Indenture .................................................................. .............................32 ARTICLE 8 Default Provisions and Remedies Section 8.1 Events of Default ................................................................................ .............................33 Section8.2 Acceleration ........................................................................................ .............................33 Section8.3 Remedies ............................................................................................. .............................34 Section 8.4 Direction of Proceedings By Bondholders ......................................... .............................34 Section 8.5 Waiver of Stay or Extension Laws ..................................................... .............................34 Section 8.6 Priority of Payment and Application of Money .................................. .............................35 Section 8.7 Remedies Vested in Trustee ................................................................ .............................36 Section 8.8 Rights and Remedies of Holders ......................................................... .............................36 Section 8.9 Termination of Proceedings ................................................................ .............................36 Section 8.10 Waiver of an Event of Default ............................................................ .............................36 Section 8.11 Borrower as Agent of Issuer ............................................................... .............................37 ARTICLE 9 The Trustee Section 9.1 Acceptance of the Trustee ................................................................... .............................38 Section 9.2 Trustee's Fees, Charges and Expenses ............................................... .............................40 Section 9.3 Notice to Holders of Default ............................................................... .............................40 Section 9.4 Intervention by Trustee ....................................................................... .............................40 Section 9.5 Successor Trustee ............................................................................... .............................40 Section 9.6 Resignation by Trustee ....................................................................... .............................41 Section 9.7 Removal of Trustee ............................................................................. .............................41 Section 9.8 Appointment of Successor Trustee ..................................................... .............................41 ii Section 9.9 Acceptance by Successor Trustees ..................................................... .............................41 Section 9.10 Right of Trustee to Pay Taxes and Other Charges .............................. .............................41 Rights Under Indenture ....................................................................... .............................49 Section 9.11 Trustee Protected in Relying Upon Resolutions ................................. .............................42 Meetings of Bondholders .................................................................... .............................49 Section 9.12 Successor Trustee as Custodian of Bond Fund and Paying Agent ..... .............................42 Severability ......................................................................................... .............................51 Section9.13 Co- Trustee .......................................................................................... .............................42 Notices ................................................................................................ .............................51 Section 9.14 Obligation to Trustee as to Reporting ................................................. .............................43 Required Approvals ............................................................................ .............................52 Section 9.15 Successor Paying Agent ...................................................................... .............................44 Counterparts ........................................................................................ .............................52 Section 9.16 Confirmation of the Trustee ................................................................ .............................44 Limitation of Liability of Issuer and its Officers, Employees and Agents ......................53 ARTICLE 10 Supplemental Indentures Section 10.1 Supplemental Indentures Not Requiring Consent of Bondholders ..... .............................46 Section 10.2 Supplemental Indentures Requiring Consent of Holders .................... .............................46 Section 10.3 Rights of Trustee ................................................................................. .............................47 ARTICLE 11 Amendments to Agreement and Related Documents Section 11.1 Amendments Not Requiring Bondholder Consent ............................. .............................48 Section 11.2 Amendments Requiring Bondholder Consent .................................... .............................48 ARTICLE 12 Miscellaneous Provisions Section 12.1 Consent of Holders ............................................................................. .............................49 Section 12.2 Rights Under Indenture ....................................................................... .............................49 Section 12.3 Meetings of Bondholders .................................................................... .............................49 Section12.4 Severability ......................................................................................... .............................51 Section12.5 Notices ................................................................................................ .............................51 Section 12.6 Required Approvals ............................................................................ .............................52 Section12.7 Counterparts ........................................................................................ .............................52 Section 12.8 Limitation of Liability of Issuer and its Officers, Employees and Agents ......................53 Section 12.9 Amounts Remaining in Funds ............................................................ .............................53 iii INDENTURE OF TRUST THIS INDENTURE OF TRUST (the "Indenture ") dated as of July 1, 2014, by and between the City of Edina, Minnesota, a Minnesota body corporate and politic (the "Issuer "), and U.S. Bank National Association, a national banking association, authorized to accept and execute trusts of the character herein set out, with a principal corporate trust office in St. Paul, Minnesota (the "Trustee "): WITNES SETH 1./� The Issuer is authorized by Minnesota Statutes, Chapters 462C and 474A, as amended (the "Act "), to issue revenue bonds to finance or refinance in whole or in part the cost of a "Project" (as hereinafter defined) for the public purposes expressed in the Act; and The Issuer has made the necessary arrangements with Yorktown Continental, LP, a Minnesota limited partnership (the "Borrower "), for the acquisition and rehabilitation, and equipping of an existing 264 -unit building containing 262 one - bedroom units and two two- bedroom units as a senior low- income housing project located at 7151 York Avenue South in the Issuer (the "Project "), which will be of the character and accomplish the purposes provided by the Act, and the Issuer has entered into a revenue agreement with the Borrower (in the form of the Loan Agreement as hereinafter defined) which specifies the terms and conditions of such acquisition and renovation and provides for the Issuer to finance a portion of the costs of the Project by making a loan (the "Loan") to the Borrower to be funded through the issuance of Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014B (the "Bonds "), in the original aggregate principal amount of $ ; and As security for the payment of the Bonds, the Issuer has agreed to assign and pledge to the Trustee, among other things, all right, title and interest of the Issuer in and to the Loan Agreement (except certain rights reserved to the Issuer under the terms of this Indenture), including the Basic Payments (as hereinafter defined); and As additional security for the Bonds, the Borrower has entered into a [Combination Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement, dated as of July 1, 2014] (the "Mortgage "), in favor of the Issuer, which Mortgage the Issuer has assigned to the Trustee pursuant to an assignment of mortgage, and the Borrower has delivered the [Assignment of Capital Contributions, Collateral Assignment of HOME Loan Proceeds, the Assignment of Partnership Interest, and the Guaranty] (all as defined below); and In connection with the issuance of the Bonds, the Borrower will enter into a Regulatory Agreement dated as of July 1, 2014 (the "Regulatory Agreement "), with the Issuer and Trustee relating to compliance with certain federal and state requirements applicable to the Project; and All things necessary to make the Bonds, when authenticated by the Trustee and issued as in this Indenture provided, valid, binding and legal limited obligations of the Issuer according to the import thereof, and to constitute this Indenture a valid contract for the security of the Bonds, have been done and performed; and the creation, execution and delivery of this Indenture, and the creation, execution and issuance of said Bonds, subject to the terms hereof, have in all respects been duly authorized; NOW THEREFORE, KNOW ALL PERSONS BY THESE PRESENTS, THIS INDENTURE WITNESSETH: The Issuer, in consideration of the premises and the acceptance by the Trustee of the trusts hereby created and of the purchase and acceptance of the Bonds by the Holders (as herein defined) thereof, in order to secure the payment of the principal of and interest and premium, if any, on the Bonds according to their tenor and effect and the performance and observance by the Issuer of all the covenants expressed or implied herein and in the Bonds, does hereby grant a security interest in, assign, transfer in trust, and pledge to the Trustee, and to its successors in trust, and to them and their assigns forever, the following: FIRST All rights, title, interest and privileges of the Issuer in, to and under the Loan Agreement, including, but not limited to, all sums which the Issuer is entitled to receive from the Borrower pursuant to the Loan Agreement and in particular the Basic Payments (but excluding the rights of the Issuer to indemnification and certain direct payments to be made to it pursuant to Sections 3.2, 4.4, 7.4, 9.5, 10.8, 10. 11, 10. 12, and 10.13 of the Loan Agreement), and all other sums (including Bond proceeds) which are required to be deposited in the trust accounts in accordance with Article 5 hereof, except for the Rebate Fund which is not a part of the Trust Estate; and the earnings derived from the investment of any of the foregoing sums as provided herein; and SECOND Any and all other property of every name and nature which may from time to time hereafter by delivery or by writing of any kind be subjected to the lien hereof by the Issuer or by anyone on its behalf or with its written consent, including, but not limited to, the interests of the Issuer, if any, under the Collateral Documents [(including the proceeds of the Assigned Capital Contributions, the GP Capital Contributions, the HOME Loan Proceeds and the Sponsor Loan Proceeds)], and the Trustee is hereby authorized to receive any and all such property at any and all times and to hold and apply the same as additional security hereunder subject to the terms hereof; and • 11.11 All property mortgaged, pledged and assigned under the Mortgage and any and all other property of every name and nature which may from time to time hereafter by delivery or by writing of any kind be subjected to the lien hereof by the Issuer or by anyone on its behalf or with its written consent, and the Trustee is hereby authorized to hold and apply the same as additional security hereunder subject to the terms hereof. TO HAVE AND TO HOLD all the same (herein called the "Trust Estate ") with all privileges and appurtenances hereby granted and assigned, or agreed or intended so to be, to the Trustee and its successors in trust and to them and their assigns forever; SUBJECT TO the rights of the Borrower under the Loan Agreement and the Mortgage; IN TRUST NEVERTHELESS, upon the terms and trusts herein set forth for the equal and proportionate benefit, security and protection of all Holders from time to time of the Bonds issued under and secured by this Indenture, without privilege, priority or distinction as to lien or otherwise of any of the Bonds over any of the others except as otherwise provided herein; PROVIDED, HOWEVER, that if the Issuer, its successors or assigns, shall well and truly pay, or cause to be paid, or provide fully for payment as herein provided of the principal of the Bonds and the interest due or to become due thereon (together with premium, if any), at the time and in the manner set forth in the Bonds according to the true intent and meaning thereof, and shall make the payments into the Bond Fund as required under Article 5 or shall provide, as permitted hereby, for the payment thereof by depositing with the Trustee sums sufficient for payment of the entire amount due or to become due thereon as herein provided, and shall well and truly keep, perform and observe all the covenants and conditions pursuant to the terms of this Indenture to be kept, performed and observed by it, and shall pay to the Trustee all sums of money due or to become due to it in accordance with the terms and provisions hereof, then this Indenture and the rights hereby granted shall cease, terminate and be void except as otherwise provided herein; otherwise, this Indenture shall be and remain in full force and effect. UNDER THE PROVISIONS OF THE ACT the Bonds may not be payable from or be a charge upon any funds of the Issuer other than the revenue pledged to the payment thereof nor shall the Issuer be subject to any pecuniary liability thereon and no Holder or Holders of the Bonds shall ever have the right to compel any exercise of the taxing power of the Issuer to pay any Bonds or the interest and premium, if any, thereon, or to enforce payment thereof against any property of the Issuer, except as above provided; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Issuer, except as above provided; and no Bond shall constitute a debt of the Issuer within the meaning of any constitutional or statutory limitation, but nothing in the Act impairs the rights of the Holders of Bonds issued under this Indenture to enforce the covenants made for the security thereof as provided in this Indenture and in the Act, and by authority of the Act the Issuer and the Trustee mutually covenant and agree, to the extent specifically provided herein, for the equal and proportionate benefit of all Holders of the Bonds, as follows: ARTICLE 1 DEFINITIONS, EXHIBITS AND GENERAL PROVISIONS Section 1.1 Definitions. In this Indenture the following terms have the following meanings unless the context hereof clearly requires otherwise, and any other terms defined in the Loan Agreement shall have the same meanings when used herein as assigned them in the Loan Agreement unless the context or use thereof indicates another or different meaning or intent: Act: Minnesota Statutes, Chapters 462C and 474A, as amended; Act of Bankruptcy: any of the following events: (i) If the Borrower shall (a) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee, liquidator or the like, or of all or a substantial part of their property, (b) commence a voluntary case under the Federal Bankruptcy Code (as now or hereafter in effect), or (c) file a petition seeking to take advantage of any other law relating to bankruptcy, insolvency, reorganization, winding -up or composition or adjustment of debts; or (ii) A proceeding or case shall be commenced, without the application or consent of the Borrower, in any court of competent jurisdiction, and shall not be dismissed, vacated, or stayed within 60 days after commencement, seeking (a) the liquidation, reorganization, dissolution, winding -up, or the composition or adjustment of its debts, (b) the appointment of a trustee, receiver, custodian, liquidator or the like of the Borrower, or of all or any substantial part of its assets, or (c) similar relief in respect of the Borrower under any law relating to bankruptcy, insolvency, reorganization, winding -up or composition or adjustment of debts; Additional Charges: the payments required by Section 4.4 of the Loan Agreement; Affiliated Party: as to a particular Person, any Person directly and, indirectly controlling or controlled by or under direct or indirect common control with such specified Person. "Control ", when used with respect to a particular Person, means the possession, directly or indirectly, of the power to direct management and policies of such Person whether through the ownership of voting stock, by contract or otherwise, and the terms "controlling" and "controlled" have meanings correlative to the foregoing; [Assigned Capital Contributions: the second installment, which is in the expected amount of $ , and the third installment, which is in the expected amount of $ , of the equity contribution to be made by the Investor Limited Partner to the Borrower, pursuant to Section 7.2 of the Partnership Agreement, and subject to the conditions, terms and provisions of the Partnership Agreement;] [Assignment of Capital Contributions: the Assignment of Capital Contributions dated as of 1, 20_, from the Borrower and the General Partner to the Trustee, acknowledged by the Investor Limited Partner;] [Assignment of HOME Loan Proceeds: the Collateral Assignment of HOME Loan Proceeds dated as of 1, 20_, between the Borrower and the Trustee;] 4 Assignment of Mortgage: the Assignment of Mortgage, dated as of July 1, 2014, executed by the Issuer in favor of the Trustee; [Assignment of Partnership Interest: that Assignment of Partnership Interest, dated as of 1, 20_, from the Borrower and the General Partner to the Trustee, whereby the Borrower and the General Partner assign to the Trustee all right, title and interest of the General Partner in the Borrower, including all ownership and general partner rights of the General Partner as a partner under the Partnership Agreement, and all right, title and interest of the Borrower in the GP Capital Contributions;] Authorized Denominations: $100,000 or any integral multiple of $5,000 in excess thereof; Basic Payments: the payments required by Section 4.2 of the Loan Agreement; Beneficial Owner: the Person for which a DTC Participant holds an interest in the Bonds as shown on the books and records of the DTC Participant; Bond Closing: July _, 2014, the date on which there is delivery by the Issuer of and payment by the Underwriter for the Bonds; Bond Counsel: Dorsey & Whitney LLP and any other firm of nationally recognized bond counsel experienced in tax exempt bond financing selected by the Issuer and acceptable to the Trustee and the Borrower; Bond Fund: the fund so designated in Section 5.3 from which the principal of and interest on the Bonds are payable; Bond Register: the register maintained by the Trustee pursuant to Section 2.9; Bondholder or Holder: a Person in whose name a Bond is registered in the Bond Register; Bond Year: any 12 month period ending on the anniversary of the Bond Closing; Bonds: the Issuer's Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014B, in the original aggregate principal amount of $ ; Borrower: Yorktown Continental, LP, a Minnesota limited partnership, and its successors and assigns or other Person which may assume its obligations under the Loan Agreement; Business Day: any day on which the Trustee or the Federal Reserve Bank of New York are not authorized by law to close; Capitalized Interest Fund. the fund so designated in Section 5.4 from which interest on the Bonds is payable; Cede & Co.: initially, Cede & Co., as nominee of DTC, and any successor or subsequent such nominee designated by DTC respecting DTC's functions as book -entry depository for any Bond or Bonds; Code or Internal Revenue Code: the Internal Revenue Code of 1986, as amended, and all applicable Treasury Regulations; Collateral Documents: the Mortgage, the Security Documents and any other written instrument other than the Loan Agreement and this Indenture, whereby any property or interest in property of any kind is granted, pledged, conveyed, assigned, or transferred to the Issuer or Trustee, or both, as security for payment of the Bonds or performance by the Borrower of its obligations under the Loan Agreement; Completion Date: the date the Borrower certifies the renovation of the Project is complete pursuant to Section 3.6 of the Loan Agreement; Condemnation: the word "Condemnation" or phrase "eminent domain" as used herein shall include the taking or requisition by governmental authority or by a Person, acting under governmental authority and a conveyance made under threat of Condemnation, and "Condemnation award" shall mean payment for property condemned or conveyed under threat of Condemnation; Defaulted Interest: shall have the meaning stated in Section 2.2 hereof, Determination of Taxability: a determination that the interest income on any Bond is included in gross income for federal income tax purposes under Section 103 of the Code for any reason, other than that the Holder is a Substantial User of the Project or a Related Person thereto, which determination shall be deemed to have been made upon the occurrence of the first to occur of the following: (i) the date on which any change in law or regulation becomes effective or on which the Internal Revenue Service has issued any private ruling, technical advice or any other written communication to the effect that the interest income on any of the Bonds is included in gross income for federal income tax purposes; or (ii) the date on which the Borrower shall receive notice from the Trustee or the Issuer in writing that the Trustee has been advised by any Holder that the Internal Revenue Service has issued a 30 -day letter or other notice which asserts that the interest on such Bond is included in gross income for federal income tax purposes; [Disbursing Agreement: the Disbursing Agreement, dated as of July 1, 2014, among the Trustee, the Borrower and Commercial Partners Title, LLC;] Discharge Date: the date on which all Outstanding Bonds are discharged under Article 7; DTC: The Depository Trust Company, New York, New York, a limited purpose trust company organized under the laws of the State of New York, or any successor book -entry securities depository for the Bonds appointed pursuant to Section 2.13; DTC Participants: those broker - dealers, banks and other financial institutions from time to time for which DTC holds bonds or securities as depository; Event of Default: any of the events set forth in Section 8.1 hereof; Facility: the existing building located at 7151 York Avenue South, in Edina, Minnesota on the Project Premises, and all related improvements and equipment, together with all additions to, replacements of and substitutions for any of the foregoing; Federal Bankruptcy Code: the United States Bankruptcy Reform Act of 1978, as amended, or any similar or succeeding federal bankruptcy law; Final Maturity Date: the Stated Maturity, Discharge Date or Redemption Date on which all Outstanding Bonds either mature, are redeemed or discharged, whichever is earlier; General Partner: , a , and its successors and assigns; Government Obligations: direct general obligations of, or obligations the prompt payment of the principal of and the interest on which are fully and unconditionally guaranteed by, the United States of America; [GP Capital Contributions: the equity contribution to be made by the General Partner to the Borrower, pursuant to Section 6.1 of the Partnership Agreement in the amount of $ , and subject to the conditions, terms and provisions of the Partnership Agreement;] [Guaranty: the Guaranty Agreement dated as of July 1, 2014, from , a Minnesota nonprofit corporation, to the Trustee, as amended, modified, supplemented or restated from time to time or any agreement entered into in substitution therefor;] [HOME Loan Proceeds: the proceeds to be loaned by the Issuer to the Borrower in the amount of $500,000 pursuant to a HOME Repayment Loan Agreement, dated as of _, 20_;] Holder or Bondholder: the Person in whose name a Bond is registered in the Bond Register; Indenture: this Indenture of Trust, dated as of July 1, 2014, by and between the Issuer and the Trustee, as the same may from time to time be amended or supplemented as herein provided; Independent Accountant: a certified public accountant or firm of certified public accountants registered and qualified to practice as such under the laws of the State, who does not have any direct financial interest in the Borrower, other than the payment to be received under contract for services performed and who is not connected with the Borrower as an officer, employee, underwriter, partner, affiliate, subsidiary, or person performing similar functions and is not a trustee or director of the Borrower; Independent Counsel: any attorney duly admitted to practice law before the highest court of any state, who may be counsel to the Borrower or the Issuer but who may not be an officer or a full time employee of the Borrower or the Issuer; Interest Payment Date: each 1 and 1, commencing 1, 20_ and continuing until payment in full of the Bonds; Internal Revenue Code or Code: the Internal Revenue Code of 1986, as amended, and all applicable Treasury Regulations; Investor Limited Partner: , a , and its successors and assigns; Issuer: the City of Edina, Minnesota, or any successor thereto; Loan: the loan of Bond proceeds by the Issuer to the Borrower described in Section 4.1 of the Loan Agreement; 7 Loan Agreement: the Loan Agreement dated as of July 1, 2014, by and between the Issuer and the Borrower, as the same may from time to time be amended or supplemented as provided therein and in this Indenture; Mortgage: the [Combination Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement] dated as of July 1, 2014 from the Borrower to the Issuer and assigned by the Issuer to the Trustee, to secure the Bonds; Moody's: Moody's Investors Service, Inc., a corporation organized and existing under the laws of the State of New York, and its successors and assigns, and, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a municipal securities rating agency, " Moody's" shall be deemed to refer to any other nationally recognized municipal securities rating agency designated by the Issuer (other than Standard & Poor's); Notice by Mail: notice of any action or condition by mail shall mean a written notice.meeting the requirements of this Indenture mailed by first -class mail, postage prepaid, to the Holders of specified Bonds at the addresses shown in the Bond Register; Original Purchaser: the Underwriter; Outstanding Bonds: as of the date of determination, all Bonds theretofore issued and delivered under this Indenture except: (i) Bonds theretofore cancelled by the Trustee or Paying Agent or delivered to the Trustee or Paying Agent cancelled or for cancellation; (ii) Bonds for which payment or redemption money or securities (as provided in Article 7) shall have been theretofore deposited with the Trustee in trust for the Holders of such Bonds; provided, however, that if such Bonds are to be redeemed, notice of such redemption shall have been duly given pursuant to this Indenture or irrevocable action shall have been taken to call such Bonds for redemption at a stated Redemption Date; and (iii) Bonds in exchange for or in lieu of which other Bonds shall have been issued and delivered pursuant to this Indenture; provided, however, that in determining whether the Holders of the requisite principal amount of Outstanding Bonds have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Bonds owned by the Borrower shall be disregarded and deemed not to be Outstanding Bonds, except that in determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent, or waiver, only Bonds which the Trustee knows to be owned by the Borrower shall be disregarded; Paying Agent: the Trustee or any other entity designated pursuant to this Indenture as the agent of the Issuer and the Trustee to receive and disburse the principal of and premium, if any, and interest on the Bonds; Payment Date: any Interest Payment Date, any Stated Maturity, the Discharge Date or any Redemption Date; [Partnership Agreement: the Amended and Restated Agreement of Limited Partnership of the Borrower, dated as of , 20 , as amended, modified, supplemented or restated from time to time, or any agreement entered into in substitution therefor;] Permitted Investments: (i) Government Obligations; (ii) obligations of any of the following federal agencies which obligations represent full faith and credit of the United States of America, including: - Export-Import Bank - Farmers Home Administration - General Services Administration - U.S. Maritime Administration - Small Business Administration - Government National Mortgage Association (GNMA) - U.S. Department of Housing & Urban Development (PHA's) - Federal Housing Administration; (iii) bonds, notes or other evidences of indebtedness rated "AAA" by Standard & Poor's and "Aaa" by Moody's issued by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation with remaining maturities not exceeding three years; (iv) U.S. dollar denominated deposit accounts, federal funds and banker's acceptances with domestic commercial banks which have a rating on their short term certificates of deposit on the date of purchase of "A -1" or "A -1 +" by Standard & Poor's and "P -1" by Moody's and maturing no more than 360 days after the date of purchase (ratings on holding companies are not considered as the rating of the bank); (v) commercial paper which is rated at the time of purchase in the single highest classification, "A -I +" by Standard & Poor's and "P -1" by Moody's and which matures not more than 270 days after the date of purchase; (vi) investments in amoney market fund rated "AAAm" or "AAAm -G" or better by Standard & Poor's; (vii) Pre - refunded municipal obligations defined as follows: Any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local governmental unit of any such state which are not callable at the option of the obligor prior to maturity or as to which irrevocable instructions have been given by the obligor to call on the date specified in the notice; and (a) which are rated, based on an irrevocable escrow account or fund (the "escrow "), in the highest rating category of Standard & Poor's and Moody's; or (b) (1) which are fully secured as to principal and interest and redemption premium, if any, by an escrow consisting only of cash or obligations described in paragraph (i) above, which escrow may be applied only to the payment of such principal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates pursuant to such irrevocable instructions, as appropriate, and (2) which escrow is sufficient, as verified by a nationally recognized independent certified public accountant, to pay principal of and interest and redemption premium, if any, on the bonds or other obligations described in this paragraph on the maturity date or dates specified in the irrevocable instructions referred to above, as appropriate; (viii) investment agreements issued by any financial institution maintaining a rating of "A" or better by Standard & Poor's or "A2" or better by Moody's; or (ix) fixed income securities issued by any state of the United States of America or any agency, instrumentality or political subdivision thereof which are rated not less than "A" by Standard & Poor's or "A2" by Moody's; Person: any natural person, corporation, limited liability company, joint venture, cooperative, partnership, trust or unincorporated organization, government or governmental body or agency, political subdivision or other legal entity, as in the context may be appropriate; Project: the Project Premises and the Facility including all Project Equipment, as they may at any time exist; Project Equipment: any and all (i) fixtures or tangible personal property now or hereafter attached or affixed to the Project Premises, (ii) other tangible personal property now or hereafter located within or used in connection with the Project Premises or the Facility and (iii) any additions to, replacements of and substitutions for any of the foregoing; Project Fund: the fund so designated in Section 5.2 hereof; Project Premises: the real estate legally described in Exhibit A attached to the Loan Agreement, together with all additions to, replacements of and substitutions for the foregoing; Rating Agency: Standard & Poor's or Moody's; Rating Category: one of the generic rating categories of a Rating Agency, without regard to any refinement or gradation of such Rating Category by a numerical or other modifier; Rebate Amounts: the amount determined pursuant to Section 7.7(13) of the Loan Agreement to be rebated to the United States; Rebate Fund: the fund so designated in Section 5.5 hereof; Record Date: the 15th day of the calendar month next preceding an Interest Payment Date, whether or not such day is a Business Day; Redemption Date: when used with respect to any Bond to be redeemed shall mean the date on which it is to be redeemed pursuant hereto; Redemption Price: when used with respect to any Bond to be redeemed shall mean the price at which it is to be redeemed pursuant hereto; Regular Interest Payments: all interest payments on the Bonds, other than Special Interest Payments; 10 Regulatory Agreement: the Regulatory Agreement dated as of July 1, 2014, by and between the Trustee, the Issuer and the Borrower, as the same may be amended from time to time; Related Documents: the Loan Agreement, the Regulatory Agreement, the Mortgage, the Security Documents and the Disbursing Agreement; Related Person: with reference to any Substantial User, means a "related person" within the meaning of Section 147(a)(2) of the Code; Representation Letter: such Letter of Representations to DTC or other documentation required by DTC as a condition to its acting as book -entry depository for any bond or bonds together with any replacement thereof or amendment or supplement thereto (and including any standard procedures or policies referenced therein or applicable thereto) respecting the procedures and other matters relating to DTC's role as book -entry depository for the Bonds; Representative: the City Manager of the Issuer or a general partner of the Borrower, or any other person at any time designated to act on behalf of the Issuer or the Borrower, as the case may be, as evidenced by a written certificate furnished to the other party and the Trustee containing the specimen signature of such person and signed for the Issuer by its City Manager or for the Borrower by a general partner of the Borrower; Responsible Agent: any Person duly authorized and designated by the Trustee to act on its behalf in carrying out the applicable duties and powers of the Trustee as set forth in this Indenture (any action required by the Trustee under this Indenture may be taken by a Responsible Agent); Restricted Project Funds: any Bond proceeds, including interest thereon, which are required to be transferred on the Completion Date from the Project Fund to the Bond Fund and which the Trustee is required under Section 5.3(2) to apply towards the prepayment or pro rata payment of Bonds; [Security Documents: the Assignment of Capital Contributions, the Assignment of HOME Loan Proceeds, the Assignment of Partnership Interest, and the Guaranty;] Series A Bonds: the Issuer's Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project), Series 2014A in the original aggregate principal amount of $ ; SLGS: United States Treasury Certificates of Indebtedness, Notes and Bonds State and Local Government Series; Special Interest Payments: all payments of (or with respect to) interest on the Bonds made upon the acceleration of the Bonds pursuant to Section 8.2 hereof; Special Limited Partner: , a and its successors and assigns; Special Record Date: the date fixed by the Trustee pursuant to Section 2.2 hereof relating to the payment of any Defaulted Interest; [Sponsor: , a , and its successors and assigns;] [Sponsor Loan Documents: the Sponsor Note and the Sponsor Mortgage;] 11 [Sponsor Mortgage: the mortgage, dated as of 1, 20_, from the Borrower to Sponsor, securing the Sponsor Notej [Sponsor Note: the promissory note, dated as of 1, 20_, from the Borrower to Sponsor, evidencing the obligation of the Borrower to repay the loan of the Sponsor Loan Proceeds to the Sponsor;] Standard & Poor's: Standard & Poor's Ratings Group, a division of the McGraw Hill Companies, and its successors and their assigns, and if such entity shall be dissolved or liquidated or shall no longer perform the functions of a municipal securities rating agency, "Standard & Poor's" shall be deemed to refer to any other nationally recognized municipal securities rating agency designated by the Issuer (other than Moody's); State: the State of Minnesota; Stated Maturity: when used with respect to any Bond or any installment of interest thereon shall mean the date specified in such Bond as the fixed date on which principal of such Bond or such installment of interest is due and payable; Substantial User: a "Substantial User" within the meaning of Section 147(a)(1) of the Code; Trust Estate: the Trust Estate as defined and set forth in the Granting Clauses hereof; Trustee: Wells Fargo Bank, National Association, and any co- trustee or successor trustee appointed, qualified and then acting as such under the provisions of this Indenture; Underwriter: Dougherty & Company LLC; Unpaid Bonds: all Outstanding Bonds and any other Bonds which have neither matured nor been redeemed or purchased and cancelled under this Indenture. Section 1.2 Rules of Interpretation. This Indenture shall be interpreted in accordance with and governed by the laws of the State of Minnesota. The words "herein" and "hereof' and "hereunder" and words of similar import, without reference to any particular section or subdivision, refer to this Indenture as a whole rather than to any particular section or subdivision of this Indenture. References in this Indenture to any particular article, section or subdivision hereof are to the designated article, section or subdivision of this Indenture as originally executed. All accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles; and all computations provided for herein shall be made in accordance with generally accepted accounting principles consistently applied and applied on the same basis as in prior years. The Table of Contents and titles of articles and sections herein are for convenience only and are not a part of this Indenture. 12 Unless the context hereof clearly requires otherwise, the singular shall include the plural and vice versa and the masculine shall include the feminine and vice versa. Articles, sections, subsections and clauses mentioned by number only are those so numbered which are contained in this Indenture. For purposes of this Indenture and the Loan Agreement, an Act of Bankruptcy shall be deemed no longer pending if either (a) the petition is dismissed by order of a court of competent jurisdiction and no further appeal rights exist from such order or (b) the Borrower notifies the Trustee that such a dismissal has occurred. Any opinion of counsel called for herein shall be a written opinion of such counsel. References to the Bonds as "tax- exempt" or to the "tax- exempt status of the Bonds" are to the exclusion of interest from gross income pursuant to Section 103(a) of the Code, irrespective of such forms of taxation as the alternative minimum tax or branch profits tax on foreign corporations, as is consistent with the approach taken in Section 59(i) of the Code. (The remainder of this page is intentionally left blank.) 13 ARTICLE 2 THE BONDS Section 2.1 Authorized Amount and Form of Bonds. Bonds secured by this Indenture shall be issued in fully registered form, without coupons, in any Authorized Denominations, in substantially the forms set forth in Exhibit A hereto with such appropriate variations, omissions and insertions as are permitted or required by this Indenture, and in accordance with the further provisions of this Article 2. The total principal amount of the Bonds that may be outstanding hereunder is expressly limited to $ . Portions of the text of the Bonds may be printed on the back of the Bonds to permit the printing of Bonds of a size which can be registered by machine. If a portion of the text of the Bond is to be printed on the back of the Bond, the face of the Bond shall contain a provision in substantially the following form: "REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND WHICH ARE SET FORTH ON THE REVERSE HEREOF, AND SUCH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE." Section 2.2 Initial Issue. The Bonds shall be initially issued in the original aggregate principal amount of $ and shall: (1) be dated as of their date of nominal original issuance, or the date of their registration as provided in Section 2.9; (2) be issued and delivered to the Original Purchaser as fully registered bonds without coupons in any Authorized Denomination and shall be numbered R -1 upward; (3) subject to the provisions of Section 3.1 and 3.7 hereof, mature in the principal amount and bear interest as provided below until paid or discharged as herein provided, with interest computed on the basis of a 360 -day year composed of twelve 30 -day months; Stated Maturity Principal ( 1) Amount Interest Rate 20 $ % (4) bear interest payable semiannually on each Interest Payment Date and continuing until payment in full of the Bonds; (5) be subject to redemption upon the terms and conditions and at the prices specified in Article 3 hereof, (6) be payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts, at the principal trust office of the Trustee acting as the Paying Agent, or a duly appointed successor Paying Agent, except that interest on the Bonds will be payable by check or draft mailed by the Trustee to the Holders of such Bonds on the applicable Record Date (the "Record Date Holders" as defined in the Bond) at the last addresses thereof as shown in the Bond Register on the applicable Record Date, and principal of and any premium on any Bonds shall be payable at the principal office of the Trustee; provided that any interest on any Bond which is payable but which is not punctually paid or duly provided ( "Defaulted Interest ") shall be payable, on a date 14 selected by the Trustee, to the Person in whose name such Bond is registered in the Bond Register at the close of business on a Special Record Date selected by the Trustee and which shall be at least 10 days but not more than 30 days before the date selected by the Trustee for payment of such Defaulted Interest. The Trustee shall give Notice by Mail of the Special Record Date and date for payment of Defaulted Interest at least 10 days before the Special Record Date; and (7) Notwithstanding the foregoing, if the date for payment of the principal of, premium, if any, or interest on any Bond shall be a day which is not a Business Day, then the date for such payment shall be the next succeeding day which is a Business Day, and payment on such later date shall have the same force and effect as if made on the nominal date of payment. Notwithstanding the foregoing, any Record Holder of at least $1,000,000 in principal amount of the Outstanding Bonds may file with the Trustee an instrument satisfactory to the Trustee requesting the interest payable by the Trustee to such Holder be paid by transferring by wire transfer in immediately available funds, on the day such payment is due, the amount to be distributed to such Holder to a designated account maintained by such Holder at any bank in the United States. The Trustee shall pay all amounts payable by the Trustee hereunder to such Holder by transfer directly to said designated bank in accordance with the provisions of any such instrument, provided that if such amount represents a payment of the principal of any Bond, such Bond shall have been presented to the Trustee. All payments so made shall be valid and effectual to satisfy and discharge the liability upon such Bonds. Section 2.3 Execution. The Bonds shall be executed on behalf of the Issuer by the signatures of the officers of the Issuer designated to sign the Bonds in a resolution of the Issuer and be sealed with the seal of the Issuer; provided, however, that the seal of the Issuer may be a printed facsimile or may be omitted; provided further that all of such signatures may be printed or photocopied facsimiles, in which event the Bonds shall also be executed manually by the Trustee as authenticating agent as provided in Section 2.4 and Minnesota Statutes, Section 475.55, as amended. In the event of disability or resignation or other absence of either such officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on behalf of such absent or disabled officer. In case either such officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he had remained in office until delivery. The Bonds may be issued and delivered as typewritten bonds or as printed bonds, provided that if the typewritten bonds are delivered, the facsimile signatures of the Issuer may be conformed signatures. Section 2.4 Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this Indenture unless a Certificate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed manually by a Responsible Agent. Certificates of Authentication on different Bonds need not be signed by the same person. The Trustee shall authenticate the signatures of officers of the Issuer on each Bond by execution of the Certificate of Authentication on the Bond; and the executed Certificate of Authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this Indenture. Section 2.5 Delivery of Initial Issue. Upon the execution and delivery of this Indenture the Issuer shall execute and deliver to the Trustee, and the Trustee shall authenticate, the Bonds in the original aggregate amount of $ and the Trustee shall deliver the Bonds to the Original Purchaser as hereinafter provided after filing with the Trustee the following: (1) original executed counterparts of the Loan Agreement, Regulatory Agreement, Disbursing Agreement, Mortgage, Assignment of Mortgage, the Security Documents, and this Indenture; 15 (2) a copy, duly certified by the Issuer's appropriate recording officer, of the resolutions adopted and approved by the governing body of the Issuer, authorizing the execution and delivery of this Indenture and the documents described in subparagraph (1) above; (3) a request and authorization (which may be part of a certificate of the Issuer) to the Trustee on behalf of the Issuer, signed by the officers of the Issuer designated to sign the Bonds in a resolution of the Issuer, to deliver the Bonds to the Original Purchaser therein identified upon payment to the Trustee for the account of the Issuer of a specified sum plus accrued interest; (4) the opinion of the Borrower's counsel in the form required by Bond Counsel and counsel to the Original Purchaser; (5) the opinion of Bond Counsel approving the legality and tax- exempt status of the Bonds issued pursuant to this Indenture; (6) any other documents or opinions as Bond Counsel may require for purposes of rendering its opinion required under subsection (5) of this Section; and (7) evidence that the Series A Bonds have been authenticated and delivered. Section 2.6 Mutilated, Lost, Stolen or Destroyed Bonds. (1) In case any Bond issued hereunder shall become mutilated or be destroyed or lost, the Issuer shall, if not then prohibited by law, cause to be executed, and the Trustee shall authenticate and deliver, a new Bond of like series, amount, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond, or in lieu of and in substitution for any such Bond destroyed or lost, upon the Holder's paying the reasonable expenses and charges of the Trustee and Issuer and, in the case of a Bond destroyed or lost, the filing with the Trustee evidence satisfactory to the Trustee that such Bond was destroyed or lost, and of the ownership thereof, and furnishing the Issuer and the Trustee with indemnity satisfactory to them. If the mutilated, destroyed or lost Bond has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior to payment. (2) In executing a new Bond and in furnishing the Trustee with the written authorization to authenticate and deliver a new Bond as provided for in this Section, the Issuer may rely conclusively on a representation of the Trustee that the Trustee is satisfied with the adequacy of the evidence presented concerning the mutilation, loss, theft or destruction of any Bond. Section 2.7 Ownership of Bonds. The Issuer, Trustee and Paying Agent may deem and treat the Holder of any Bond, whether or not such Bond shall be overdue, as the absolute owner of such Bond for the purpose of receiving payment thereof and for all other purposes whatsoever, and the Issuer (or any agent thereof), Trustee and Paying Agent shall not be affected by any notice to the contrary. Section 2.8 Preparation of Bonds. The Bonds shall be printed or typewritten bonds substantially in the form attached hereto as Exhibit A. Section 2.9 Reaistration. Transfer and Exchange of Bonds. (1) The Issuer will cause to be kept at the principal corporate trust office of the Trustee a Bond Register in which, subject to such reasonable regulations as the Trustee may prescribe, the Issuer shall provide for the registration of Bonds and the registration of transfers of Bonds; and the Trustee is 16 hereby appointed "Bond Registrar" for the purpose of registering the Bonds and transfers of the Bonds as herein provided. The Bond Register shall contain a record of every Bond at any time authenticated hereunder, together with the name and address of the Holder thereof, the date of authentication, the date of transfer or payment, and such other matters as are appropriate for the Bond Register in the estimation of the Trustee. (2) Upon surrender for transfer of any Bond at the principal corporate trust office of the Trustee, the Issuer shall execute (if necessary), and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees (but not registered in blank or to "bearer" or a similar designation), one or more new Bonds of any Authorized Denomination, having the same Stated Maturity and interest rate, as requested by the transferor. The execution by the Issuer of any Bond of any denomination shall constitute full and due authorization of such denomination and the Trustee shall thereby be authorized to authenticate and deliver such Bond. (3) At the option of the Holder, Bonds may be exchanged for other Bonds of the same series of any Authorized Denomination of a like aggregate principal amount and Stated Maturity, upon surrender of the Bonds to be exchanged at the principal corporate trust office of the Trustee, and upon payment, if the Issuer shall so require, of the taxes, if any, hereinafter referred to. Whenever any Bonds are so surrendered for exchange, the Issuer shall execute, and the Trustee shall authenticate and deliver, the Bonds which the Holder making the exchange is entitled to receive. (4) All Bonds surrendered upon any exchange or transfer provided for in this Indenture shall be promptly cancelled by the Trustee and thereafter disposed of as directed by the Issuer. (5) All Bonds delivered in exchange for or upon transfer of Bonds shall be valid special obligations of the Issuer evidencing the same debt, and entitled to the same benefits under this Indenture, as the Bonds surrendered for such exchange or transfer. (6) Transfer of a Bond may be made on the Issuer's books by the registered owner in person or by the registered owner's attorney duly authorized in writing. Every Bond presented or surrendered for transfer or exchange shall (if so required by the Issuer or the Trustee) be duly endorsed or be accompanied by 'a written instrument or instruments of transfer, in the form printed on the Bond or in another form satisfactory to the Trustee, duly executed and with guaranty of signature of the Holder thereof or his attorney duly authorized in writing and shall include written instructions as to the details of the transfer of the Bond. (7) No service charge shall be made to the Holder for any registration, transfer or exchange, but the Trustee may require payment of a sum sufficient to cover any tax, fee or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds, other than exchanges expressly provided in this Indenture to be made without expense or without charge to Bondholders. (8) Subject to the provisions of subsection (9) below, the Trustee as Bond Registrar shall endeavor to comply with rules applicable to transfer agents registered with the Securities and Exchange Commission as to the 72 -hour "turnaround" standard established for the transfer of registered corporate securities. (9) The Trustee shall not be required (i) to transfer or exchange any Bond during a period beginning at the opening of business 10 days before the day of the first publication or the mailing (if there is no publication) of a notice of redemption of Bonds under this Indenture and ending at the close of business on the day of such publication or mailing, or (ii) to transfer or exchange any Bond so selected for redemption in whole or in part. 17 (10) The Bond Registrar shall insert in each Bond the date of registration which, for purposes of delivering the original Bonds to the Original Purchaser, shall be the date of original issue, and which for all other events shall be the last Interest Payment Date preceding the date of authentication to which interest on the Bond has been paid or made available for payment, unless the date of authentication is an interest payment date to which interest has been paid or made available for payment, in which case the Bond shall be dated as of the date of authentication. Each Bond shall be so dated that neither gain nor loss in interest shall result from any transfers, exchange or substitution provided for herein. Section 2.10 Interest Rights Preserved. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. Section 2.11 Cancellation of Bonds. Whenever any Outstanding Bond shall be delivered to the Trustee for cancellation pursuant to this Indenture, upon payment of the principal amount and interest represented thereby or for replacement pursuant to Section 2.6 or transfer pursuant to Section 2.9, such Bond shall be cancelled and, subject to the Trustee's business practices, destroyed by the Trustee. Section 2.12 Book -Entry System. Upon request of a Holder any Bond may be registered in the Bond Register in the name of Cede & Co., as the nominee of DTC, who will thereafter act as securities depository for such Bond or Bonds. With respect to Bonds registered in the Bond Register in the name of Cede & Co., as nominee of DTC, neither the Issuer, the Borrower nor the Trustee shall have any responsibility or obligation to any DTC Participant or to any Beneficial Owner. Without limiting the immediately preceding sentence, neither the Issuer, the Borrower, nor the Trustee shall have any responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co., or any DTC Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any DTC Participant, any Beneficial Owner or any other Person, other than DTC, of any notice with respect to the Bonds, including any notice of redemption, (iii) the payment to any DTC Participant, any Beneficial Owner or any other Person, other than DTC, of any amount with respect to the principal of or premium, if any, or interest on the Bonds, or (iv) the failure of DTC to provide any information or notification on behalf of any DTC Participant or Beneficial Owner. The Issuer, the Borrower and the Trustee may treat as and deem DTC to be the absolute owner of each Bond for the purpose of payment of the principal of and premium and interest on such Bond, for the purpose of giving notices of redemption and other matters with respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes whatsoever (except for the giving of certain Bondholder consents). The Trustee shall pay all principal of and premium, if any, and interest on the Bonds to the Bondholders as shown on the Bond Register, and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to the principal of and premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. Upon delivery by DTC to the Trustee of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the transfer provisions in Section 2.9, references to "Cede & Co." in this Section shall refer to such new nominee of DTC. Notwithstanding the provisions of this Indenture to the contrary (including without limitation surrender of Bonds, registration thereof, and Authorized Denominations), as long as the Bonds are in book -entry form, full effect shall be given to the Representation Letter and the procedures and practices of DTC thereunder. 18 Section 2.13 Termination of Book -Entry Only System. DTC may determine to discontinue providing its services with respect to any Bonds registered in the name of Cede & Co. at any time by giving written notice to the Trustee and discharging its responsibilities with respect thereto under applicable law. Upon the termination of the services of DTC as provided above, the Bonds may be registered in whatever name or names the Bondholders shall designate at that time, in accordance with Section 2.9. To the extent that the Beneficial Owners are designated as the transferee by the Bondholders, in accordance with Section 2.9 the Bonds will be delivered in appropriate form, content and Authorized Denomination to the Beneficial Owners. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, all payments with respect to the principal of and premium, if any, and interest on such Bond and all notices with respect to such Bond shall be made and given, respectively, to DTC as provided in the Representation Letter. 19 ARTICLE 3 REDEMPTION OF BONDS BEFORE MATURITY Section 3.1 Redemption Provisions. The Bonds are subject to redemption and prepayment as follows: (1) Optional Prepayment. The Bonds are subject to redemption and prepayment upon request by the Borrower to the Trustee on any Business Day, in whole or in part, and if in part, in inverse order of their maturity dates in principal increments of $5,000, so long as no Bond is Outstanding in an amount less than $100,000, and by lot within any Stated Maturity, at a Redemption Price equal to the principal amount of the Bonds to be redeemed plus accrued interest thereon. (2) Redemption from Moneys Remaining in Project Fund. The Bonds are subject to mandatory redemption in part, at a redemption price equal to the principal amount thereof, without premium, plus accrued interest thereon to the date fixed for redemption, on the earliest practicable date for which notice can be given pursuant to Section 3.3, to the extent of moneys remaining on deposit in the Project Fund that are transferred to the Bond Fund upon completion of the Project and payment of all Costs of the Project as provided in Section 5.2(2). (3) Mandatory Redemption from Certain Moneys. The Bonds are subject to mandatory redemption in part, at a redemption price equal to the principal amount thereof, without premium, plus accrued interest thereon to the date fixed for redemption, on the earliest practicable date for which notice can be given pursuant to Section 3.3, in amounts equal to the proceeds of [(i) the Assigned Capital Contributions, (ii) the HOME Loan Proceeds, (iii) the GP Capital Contributions, and (iv) the Sponsor Loan Proceeds]; redemption of the Bonds in part to occur upon each receipt by the Borrower or its designee and deposit with the Trustee in accordance with Section 4.2(1)(c) of the Loan Agreement. If the mandatory redemption pursuant to this subsection (3) occurs resulting in the redemption of all Outstanding Bonds, remaining moneys on deposit in the Capitalized Interest Fund will be used to pay first the portion of the redemption price attributable to accrued interest on the Outstanding Bonds, and second the portion of the redemption price attributable to principal of the Outstanding Bonds. (4) No Redemption Prior to Placed in Service Date. Notwithstanding anything to the contrary contained herein, the Bonds shall not be redeemed on or prior to the date upon which the Project has been placed in service for purposes of Section 42 of the Code. Section 3.2 Partial Redemption of Bonds. In the case of any partial redemption of Bonds of the same maturity pursuant to any provision of this Indenture, the particular Bonds or portions thereof to be redeemed shall be selected by the Trustee in such manner as the Trustee shall deem fair and equitable. Notwithstanding the foregoing, DTC shall select the Bonds with respect to any Bonds registered in the name of Cede & Co. for redemption within particular maturities according to its stated procedures. In the case of any partial redemption of a Bond in a denomination greater than $5,000 then for all purposes in connection with such redemption, the first $5,000 of face value of such Bond shall be treated as though it were a separate Bond in the denomination of $5,000 and each remaining $5,000 of face value of such Bond shall be treated as though it were a separate Bond in the denomination of $5,000, and such Bond shall be redeemed only in a principal amount sufficient to redeem one or more of such separate Bonds in full and so long as no Bond is Outstanding in an amount less than $100,000. Any Bond which is to be redeemed only in part shall be surrendered to the Trustee (i) for payment of the Redemption Price (including accrued interest thereon to the Redemption Date) of the portion thereof called for redemption and (ii) for exchange for Bonds in any Authorized Denomination in aggregate principal amount equal to 20 the unredeemed portion of such Bond without charge therefor. For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Bonds shall relate, in the case of any Bond redeemed or to be redeemed only in part, to the portion of the principal of such Bond which has been or is to be redeemed. Section 3.3 Procedure for Redemption. (1) Notice of the intended redemption of Bonds shall be given by the Trustee not less than 15 nor more than 60 days prior to the date fixed for redemption by first class mail, to the registered owner of each Bond to be redeemed, at the address of such owner shown on the Bond Register; and a second notice of redemption shall be sent by first class mail, at such address to the registered owner of any Bond who has not submitted his Bond to the Trustee for payment on or before the date 60 days following the date fixed for redemption of such Bond in each case stating: (a) the complete official caption of which the Bonds being redeemed are a part; (b) the date of mailing of the notice of redemption; (c) the date fixed for redemption; (d) the redemption price or prices; (e) with respect to the redemption of the Bonds in part, the numbers of the Bonds to be redeemed, by giving the individual certificate number of each Bond to be redeemed (or stating that all Bonds between two stated certificate numbers, both inclusive, are to be redeemed or that all of the Bonds of one or more maturities have been called for redemption); (f) the CUSIP numbers of all Bonds being redeemed (provided that such notice may contain a disclaimer as to the accuracy of the CUSIP numbers); (g) in the case of a partial redemption of Bonds, the principal amount and maturity date of each Bond being redeemed; (h) the date of issue of the Bonds as originally issued; (i) the rate or rates of interest borne by each Bond being redeemed; 0) the maturity date of each Bond being redeemed; and (k) the place or places where amounts due upon such redemption will be payable. The notice will state that Bonds must be surrendered at the payment office of the Trustee for redemption at the redemption price and shall state that further interest on such Bond will not accrue from and after the redemption date provided the Trustee has on deposit sufficient funds to redeem the Bonds on such date. CUSIP number identification with appropriate dollar amounts for each CUSIP number also shall accompany all redemption payments made by check or draft. With respect to optional redemptions, such notice may be conditioned upon moneys being on deposit with the Trustee on or prior to the redemption date in an amount sufficient to pay the redemption price on the redemption date. If such notice is conditional and either the Trustee receives written notice from the Borrower that moneys sufficient to pay the redemption price will not be on 21 deposit on the redemption date, or such moneys are not received on or prior to the redemption date, then such notice shall be of no force and effect, the Trustee shall not redeem such Bonds and the Trustee shall give notice, in the same manner in which the notice of redemption was given, that such moneys were not or will not be so received and that such Bonds will not be redeemed. (2) Notice of such redemption also shall be sent by certified mail, return receipt requested, overnight delivery service or other secure means (including electronic transmission), postage prepaid, to any registered owner of $1,000,000 or more in aggregate principal amount of Bonds to be redeemed, to certain municipal registered securities depositories which are known to the Trustee to be holding Bonds and to at least two of the national information services that disseminate securities redemption notices, when possible, at least two days prior to the mailing of notices required by the first paragraph above, but in any event at least 15 days, but not more than 60 days, prior to the redemption date; provided that neither failure to receive such notice nor any defect in any notice so delivered shall affect the sufficiency of the proceedings for the redemption of such Bonds. (3) Failure to give notice by mailing to the registered owner of any Bond designated for redemption or any defect in such notice shall not affect the validity of the proceedings for the redemption of such Bond. (4) As long as DTC is effecting book -entry transfers of the Bonds or is acting as a registered securities depository with respect to any Bonds, the Trustee shall provide the notices specified in this Section 3.3 to the Securities Depository by overnight delivery service, facsimile transmission or by certified mail, return receipt requested at least one day prior to the mailing of the notice to Bondowners required pursuant to Section 3.3(1). It is expected that DTC shall, in turn, notify the DTC Participants and that the DTC Participants, in turn, will notify or cause to be notified the Beneficial Owners. Any failure on the part of DTC or a DTC Participant, or failure on the part of a nominee of a Beneficial Owner of a Bond (having been mailed notice from the Trustee, a DTC Participant or otherwise) to notify the Beneficial Owner of the Bond so affected, shall not affect the validity of the redemption of such Bond. (5) Notice of redemption having been given in the manner provided above, and money sufficient for the redemption being held by the Trustee or Paying Agent for that purpose, thereupon the Bonds so called for redemption shall become due and payable on the redemption date, and interest thereon shall cease to accrue; and the owners of the Bonds so called for redemption shall thereafter no longer have any security or benefit under this Indenture except to receive payment of the redemption price for such Bonds. Section 3.4 Payment of Bonds Upon Redemption. The Redemption Price of Bonds or portions thereof called for redemption in accordance with Section 3.3 shall be payable on the date of redemption upon presentation and surrender of such Bonds at the place or places of payment. If, on the Redemption Date, sufficient money shall have been deposited with the Trustee to effect such redemption in accordance with this Indenture, then interest shall cease to accrue on all Bonds or portions thereof so called for redemption. Section 3.5 No Partial Redemption After Default. Anything in this Indenture to the contrary notwithstanding, if there shall have occurred and be continuing an Event of Default, there shall be no redemption of less than all of the Bonds at the time Outstanding. Section 3.6 Cancellation. All Bonds which have been redeemed shall be cancelled by the Trustee as provided in Section 2.11 and shall not be reissued. 22 ARTICLE 4 GENERAL COVENANTS Section 4.1 Payment of Principal, Premium and Interest. Solely from the money derived from the Loan Agreement (other than to the extent payable from proceeds of the Bonds or temporary investments), the Issuer will duly and punctually pay the principal of, premium, if any, and interest on the Bonds in accordance with the terms of the Bonds and this Indenture. Money derived from the Loan Agreement include all money derived from the Granting Clauses set forth herein, including, but not limited to, Basic Payments under the Loan Agreement and trust funds deposited in the funds and accounts established under Article 5 herein to the extent and in the manner provided in said Article. Nothing in the Bonds or in this Indenture shall be considered as assigning or pledging funds or assets of the Issuer other than those covered by the Granting Clauses set forth herein. Section 4.2 Performance of and Authority for Covenants. The Issuer covenants that it is duly authorized under the Act to issue the Bonds authorized hereby, to execute this Indenture, to loan the Bond proceeds to the Borrower and to assign and pledge the payments from the Loan Agreement in the manner and to the extent herein set forth; that all action on its part for the issuance of the Bonds and the execution and delivery of this Indenture has been duly and effectively taken. Section 4.3 Instruments of Further Assurance. The Issuer covenants that it has not made, done, executed or suffered, and will not make, do, execute or suffer, any act or thing whereby its interest in the Loan Agreement or any part thereof is now or at any time hereafter impaired, changed or encumbered in any manner whatsoever, except as may be expressly permitted herein; and that it will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, such instruments supplemental hereto and such further acts, instruments and transfers as the Trustee may reasonably require for the better assuring, transferring, pledging, assigning and confirming unto the Trustee all and singular the sums assigned and pledged hereby to the payment of the principal of and interest on the Bonds. Section 4.4 Recording and Filing. The Trustee covenants that solely from available Additional Charges it will require the Borrower to cause this Indenture, the Mortgage, the Security Documents and all supplements thereto, to be kept, recorded and filed in such manner and in such places as may be required by law in order to preserve and protect fully the security of the Holders of the Bonds and the rights of the Trustee hereunder and under any other instruments aforesaid. Section 4.5 Books and Records. The Trustee covenants that so long as any Outstanding Bonds issued hereunder and secured by this Indenture shall be unpaid, the Trustee will keep proper books or records and accounts, in which full, true and correct entries will be made of all its financial dealings or transactions in relation to the Project and the payments derived from the Loan Agreement and this Indenture. At reasonable times and under reasonable regulations established by the Trustee, such books shall be open to the inspection of Holders and such accountants or other agencies as the Trustee may from time to time designate. Section 4.6 Bondholders' Access to Bond Re g sue. Except as otherwise may be provided by law, the Bond Register shall not be deemed a public record and shall not be made available for inspection by the public, unless and until notice to the contrary is given to the Trustee by the Issuer. Section 4.7 Rights Under Loan Agreement. The Loan Agreement sets forth covenants and obligations of the Issuer and the Borrower, and reference is hereby made to the same for a detailed 23 statement of said covenants and obligations. The Issuer agrees to cooperate in the enforcement of all covenants and obligations of the Borrower under the Loan Agreement and agrees that the Trustee in its name or in the name of the Issuer may enforce all rights of the Issuer and all obligations of the Borrower under and pursuant to the Loan Agreement and on behalf of the Holders, whether or not the Issuer has undertaken to enforce such rights and obligations. (The remainder of this page is intentionally left blank.) 24 ARTICLE 5 FUNDS AND ACCOUNTS Section 5.1 "Trust Money" Defined. All money received by the Trustee: (1) as elsewhere herein provided to be held and applied under this Article 5, or required to be paid to the Trustee and whose disposition is not elsewhere herein otherwise specifically provided for, including, but not limited to the investment income of all Trust Funds held by the Trustee under this Indenture; or (2) as proceeds from the sale of the Bonds; or (3) as Basic Payments, or as otherwise payable under the Loan Agreement; (all such money being herein sometimes called "Trust Money ") shall be held by the Trustee as a part of the Trust Estate, and, upon the exercise by the Trustee of any remedy specified in Article 8 hereof, such Trust Money shall be applied in accordance with Section 8.6 hereof, except to the extent that the Trustee is holding in Trust Money or Government Obligations, as the case may be, for the payment of any specified Bonds which are no longer deemed to be Outstanding under the provisions of Article 7 hereof, which money or Government Obligations shall be applied only as provided in said Article 7. Prior to the exercise of any such remedy, all or any part of the Trust Money shall be held, invested, withdrawn, paid or applied by the Trustee, from time to time, as provided in this Article 5, in Article 6 and Article 7 hereof. Section 5.2 Project Fund. (1) There is hereby created a Project Fund. Proceeds of the Bonds deposited in the Project Fund shall be disbursed by the Trustee in accordance with the applicable provisions of Article 3 of the Loan Agreement and the Disbursing Agreement. The Issuance Expenses of the Bonds may be disbursed by the Trustee from the Project Fund, upon a written request of the Borrower, without having to comply with the provisions of the Disbursing Agreement or the Loan Agreement regarding disbursement of Bond proceeds for the payment of Project Costs. (2) Any sums in the Project Fund in excess of any amount required to pay Project Costs shall be transferred to the Bond Fund at the time or times and in the manner provided in Article 3 of the Loan Agreement. (3) Any funds deposited in the Project Fund by the Borrower shall be disbursed before any proceeds of the Bonds, including any earnings thereon, shall be disbursed. (4) Any interest earned on sums held in the Project Fund prior to the Completion Date shall remain a part of the Project Fund. Section 5.3 Bond Fund. (1) There is hereby created a Bond Fund. (a) There shall be credited to the Bond Fund, as and when received: 25 (i) each payment received by the Trustee under and pursuant to any of the provisions of this Indenture or the Loan Agreement which is required to be paid into the Bond Fund, or which is accompanied by directions that such payment is to be credited to the Bond Fund; (ii) funds transferred from the Capitalized Interest Fund pursuant to Section 5.4(1); (iii) all income derived from the investment of amounts described in clause (i), as realized. (b) The Trustee shall disburse, from time to time, sufficient money from the Bond Fund as specified below to pay the principal of, premium, if any, and the interest on, the Bonds as the same become due and payable. (c) If any Bond shall not be presented for payment at maturity, provided money sufficient to pay such Bond shall have been made available to the Trustee and are held by the Trustee for the benefit of the Holder thereof, all liability of the Issuer to the Holder thereof for the payment of such Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Trustee to hold such money, without liability for interest thereon, for the benefit of the Holder of such Bond, who shall thereafter be restricted exclusively to such money for any claim of whatever nature on his part hereunder or on, or with respect to, such Bond. (d) Any money remaining in the Bond Fund after payment in full of all Bonds, and payment of the fees, charges and expenses of the Trustee, the Paying Agent, the Issuer and any Co- Paying Agent which have accrued and which will accrue and all other items required to be paid hereunder shall be paid to the Borrower. (e) Money in the Bond Fund shall be invested as provided in Section 6.1 hereof. (f) At any time upon request, the Trustee shall advise the Borrower and the Investor Limited Partner of the amount of funds determined by the Trustee to be necessary to redeem the Bonds in full pursuant to Section 3.1(3) of the Indenture, which determination shall take into account any moneys on deposit in the Capitalized Interest Fund that may be applied to the redemption price of the Bonds pursuant to this Indenture. (2) Any surplus money in the Project Fund at the Completion Date which are transferred to the Bond Fund as provided in Section 5.2(2) (and interest earned thereon) shall be used by the Trustee (a) to redeem the largest number of Bonds callable, without premium or penalty, under the terms of this Indenture at the first opportunity or (b) to pay that portion of the annual principal due on the Bonds in an amount that bears the same ratio to the annual principal due that the total of such surplus funds bears to the face amount of the Bonds; and such funds transferred to the Bond Fund shall not be invested in by the Trustee to produce a yield greater than the yield on the Bonds, as required by Internal Revenue Service Revenue Procedure 79 -5, Revenue Procedure 81 -22 and 26 CFR 601.201 (and any subsequent amendments, modifications or replacements thereof), provided that, if the Trustee receives a Favorable Opinion of Bond Counsel, the funds may be invested at a yield greater than the yield on the Bonds or the balance may be applied to meet current debt service requirements and accordingly become a part of the balance in the Bond Fund which may be credited against current installments of Basic Payments. Section 5.4 Capitalized Interest Fund. 26 (1) There is hereby created a Capitalized Interest Fund. The Trustee shall credit to the Capitalized Interest Fund the amounts set forth in the Issuer Request to be delivered pursuant to Section 2.5 hereof. Funds in the Capitalized Interest Fund shall be transferred automatically by the Trustee to the Bond Fund on the last Business Day of the month prior to a month in which an Interest Payment Date occurs in full or partial satisfaction of the interest payment payable by the Borrower with respect to the Bonds until the Capitalized Interest Fund is fully depleted. (2) Any interest earned on sums held in the Capitalized Interest Fund prior to the Completion Date shall remain a part of the Capitalized Interest Fund. (3) Any funds remaining in the Capitalized Interest Fund following the Completion Date of the Project shall be transferred to the Bond Fund. Section 5.5 Rebate Fund. (1) There is hereby created a Rebate Fund. The Trustee shall deposit in the Rebate Fund, upon receipt, all rebate amounts deposited with the Trustee in accordance with Section 7.7(13) of the Loan Agreement; and for purposes of making such deposits the Trustee shall, at the direction of the Borrower, transfer from the appropriate fund to the Rebate Fund a sum equal to any rebate amounts attributable to sums held in the Project Fund. (2) The Trustee shall cooperate with the Borrower in making the determinations for each computation required pursuant to 7.7(13) of the Loan Agreement; and to that end, the Trustee shall, within 30 days after the end of the fifth Bond Year, prepare and file with the Borrower a report with respect to the Project Fund setting forth the total amount invested during the preceding five Bond Years, the investments made with the money in the Project Fund and the investment earnings (and losses) resulting from such investments, together with such additional information concerning the Bond Fund and the investments therein as the Rebate Consultant (as defined in 7.7(13) of the Loan Agreement) or the Borrower shall reasonably request. (3) The Trustee shall remit sums in the Rebate Fund to the United States as provided in Section 7.7(13) of the Loan Agreement. (4) Upon written direction of the Borrower, the Trustee shall remit to the Borrower, or transfer to the Bond Fund, any surplus rebate sums held in the Rebate Fund as provided in Section 7.7(13) of the Loan Agreement. Section 5.6 Deposit of Funds with Paving Agent. (1) The Trustee shall transfer and remit sums from the Bond Fund to the Paying Agent in advance of each interest and principal due date and redemption date, from the balance then on hand in the Bond Fund, sufficient to pay all principal, interest and redemption premiums then due on the Bonds. The Paying Agent shall hold in trust for the Holders of such Bonds all sums so transferred to it until paid to such Holders or otherwise disposed of as herein provided. (2) Interest on each Bond including accrued interest to the date of deposit and interest, to the extent permitted by law, on overdue installments of interest at the rate borne by such Bond, (a) shall cease on its Stated Maturity, or on any prior date on which it shall have been duly called for redemption as herein provided, provided that funds sufficient for the payment thereof with accrued interest and any redemption premium have been deposited with the Paying Agent on or before the Stated Maturity or 27 Redemption Date, as the case may be, and in the case of redemption, that the requirements of Article 3 have been complied with, or (b) shall cease on any date after Stated Maturity on which such deposit has been made, and the Holder shall have no further rights with respect to the Bonds or under this Indenture except to receive the payment so deposited. (3) If any Bond is not presented for payment when due and funds sufficient to pay such Bond shall have been paid to the Trustee (or other Paying Agent, if any): (a) all liability of the Issuer for payment of such Bond shall forthwith cease, (b) such Bond shall forthwith cease to be entitled to any lien, benefit or security under this Indenture, and the Holder of such Bond shall forthwith have no rights in respect thereof except to receive payment thereof, and (c) the Trustee (or other Paying Agent, if any) shall hold such funds, without liability for interest thereon, for the benefit of the Holder of such Bond. Any money still held by the Trustee (or other Paying Agent, if any) after two years and eleven months from the date on which the Bond with respect to such amount was paid to the Trustee (or other Paying Agent, if any), shall, if and to the extent permitted by law, be paid by the Trustee (or other Paying Agent, if any) to the Borrower and shall be discharged from the trust and all liability of the Paying Agent or the Trustee with respect to such trust money shall cease; and the Bondholders shall thereafter be entitled to look only to the Borrower for payment, and the Borrower shall not be liable for any interest thereon. (4) If there is any Paying Agent who is not the Trustee, the Trustee will cause such Paying Agent to execute and deliver to it an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section 5.7, that such Paying Agent will: (a) hold all sums held by it for the payment of principal of (and premium, if any) or interest on Bonds in trust for the benefit of the Holders of such Bonds until such sums shall be paid to such Holders or otherwise disposed of as herein provided; and (b) at any time during the continuance of any default in the making of any such payment of principal (and premium, if any) or interest, upon the written request of the Trustee forthwith pay to the Trustee all sums so held in trust by such Paying Agent. The Trustee, acting as Paying Agent, shall also be bound by the terms of the foregoing requirements. 28 ARTICLE 6 INVESTMENTS Section 6.1 Investments by Trustee. (1) Except during the continuance of an Event of Default, and subject to the provisions of Section 8.2, money held for the credit of the funds established by Article 5 shall be held by the Trustee as required by law and shall at the written request of the Representative of the Borrower, to the extent practicable and permitted by the Act, and except as provided below with respect to the moneys in the Bond Fund be invested as received and reinvested by the Trustee in Permitted Investments (including investments in securities authorized by the Act, through a common trust fund or similar fund maintained by a bank exclusively for the collective investment and reinvestment of moneys contributed thereto by the bank in its capacity as trustee, certificates of deposit, and repurchase agreements). Subject to Minnesota Statutes, as to the investment of sums (other than Bond proceeds) held in the Bond Fund, the type, amount and maturity of such investments shall be as specified by the Representative of the Borrower, provided that sums in the Bond Fund may in any event only be invested in securities which mature or are subject to redemption or repurchase at the option of the Trustee on or prior to the date or dates on which the Trustee anticipates that cash funds will be required. (2) The Trustee shall sell and reduce to cash funds a sufficient portion of investments under the provisions of this Section whenever the cash balance in the fund for which the investment was made is insufficient for its current requirements. Securities so purchased as an investment of money shall be held by the Trustee, shall be registered in the name of the Trustee if registration is required, and shall be deemed at all times a part of the applicable fund, and the interest accruing thereon and any profit realized from such investments shall be credited to the fund from which the investment was made, subject to any transfer to another fund as herein provided. Any loss resulting from such investment shall be charged to the fund from which the investment was made. (3) The Trustee may purchase from or sell to itself, or through any affiliated company, as principal or agent, securities herein authorized so long as such purchase or sale is at fair market value. Section 6.2 Return on Investments. (1) In directing investments pursuant to Section 8.3 of the Loan Agreement, the Borrower will not instruct the Trustee to use the proceeds of the Bonds or other sums pledged to the payment of the Bonds, directly or indirectly, to acquire any securities or obligations the acquisition of which would cause any of the Bonds to be an "arbitrage bond" as defined in Section 148 of the Code, and for this purpose the Trustee, in order to restrict yield on investments, may invest in SLGS (and accordingly is hereby authorized to act as agent of the Issuer for such purpose). The Trustee shall be fully protected in relying on an opinion of Bond Counsel with respect to whether the acquisition of any securities or obligations would have the effect prohibited by this Section. (2) No money in any fund or account shall be invested in investments which cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code. If at any time the money in all funds and accounts relating to the Bonds exceed, within the meaning of Section 149(b) of the Code, (a) amounts invested for an initial temporary period until the money is needed for the purpose for which the Bonds were issued, (b) investments of a bona fide debt service fund, and (c) investments of a reserve which meet the requirement of Section 148(d) of the Code, then money in excess of such amounts shall 29 be invested at the direction of the Borrower pursuant to Section 8.3 of the Loan Agreement in (i) obligations issued by the United States Treasury, (ii) other investments permitted under regulations, or (iii) obligations which are (a) not issued by, or guaranteed by, or insured by, the United States or any agency or instrumentality thereof or (b) not federally insured deposits or accounts, all within the meaning of Section 149(b) of the Code. The Trustee shall not take any action or do anything the effect of which shall be to cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code. (3) The provisions of this Section 6.2 shall survive discharge and release of the Indenture. Section 6.3 Computation of Balances in Funds. In computing the assets of any fund established hereunder, investments and accrued but unpaid interest thereon shall be deemed a part thereof, and such investments shall be valued at par value, or at the Redemption Price thereof, if then redeemable at the option of the holder; provided that in any event for purposes of determining whether any balance in a fund may only be invested at a restricted yield to comply with Section 148 of the Code and the federal arbitrage regulations, any investments in the fund shall be valued at their par value or the price (less accrued interest) at which they were purchased, whichever is the greater. Section 6.4 Rebate to United States. The Bonds are subject to the rebate to the United States of earnings in excess of the yield on the Bonds imposed by Section 148 of the Code and Section 1.148 -3 of the Treasury Regulations. The Trustee shall have no obligation to calculate the amount of, or make, any required rebate as provided in Section 5.5. The Trustee shall cooperate with the Borrower in determining the amount of any rebate. (The remainder of this page is intentionally left blank.) 30 ARTICLE 7 DISCHARGE OF LIEN Section 7.1 Payment of Bonds; Satisfaction and Discharge of Bonds and Obligation to Bondholders. Whenever the conditions specified in either clause (a) or clause (b) of the following subsection (1) and the conditions specified in the following subsections (2) and (3) to the extent applicable, shall exist, namely: (1) either (a) all Bonds have been cancelled by the Trustee or delivered to the Trustee for cancellation, excluding, however, (i) Bonds for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Paying Agent or Trustee and thereafter repaid to the Borrower or discharged from such trust, and (ii) Bonds alleged to have been destroyed, lost or stolen which have been replaced or paid as provided in Section 2.6 hereof, and (a) which, prior to the satisfaction and discharge of this Indenture as hereinafter provided, have not been presented to the Paying Agent or the Trustee with a claim of ownership and enforceability by the Holder thereof, or (b) whose enforceability by the Holder thereof has been determined adversely to the Holder by a court of competent jurisdiction or other competent tribunal; or (b) the Issuer or the Borrower has deposited or caused to be deposited as trust funds: (i) with the Paying Agent, cash which shall be sufficient, or (ii) with the Trustee cash and/or Government Obligations, which do not permit the redemption thereof at the option of the issuer thereof, the principal of, premium, if any, and interest on which when due (or upon the redemption thereof at the option of the holder), will, without reinvestment, provide cash which together with the cash, if any, deposited with the Trustee at the same time, shall be sufficient, to pay and discharge the entire indebtedness on Bonds not theretofore cancelled by the Trustee or delivered to the Trustee for cancellation by the payment of interest on and principal (and premium, if any) of the Bonds which have become due and payable or which shall become due at their Stated Maturity or Redemption Date, as the case may be, and which are to be discharged under the provisions hereof, and has made arrangements satisfactory to the Trustee for the giving of notice of redemption, if any, by the Trustee in the name, and at the expense, of the Borrower in the same manner as is provided by Section 3.2 hereof; and (2) the Borrower has paid, caused to be paid or made arrangements satisfactory to the Trustee for the payment of all other sums payable hereunder and under the Loan Agreement, and the Related Documents by the Trustee or the Borrower until the Bonds are so paid; and (3) the Borrower has delivered to the Trustee a report of an Independent Accountant stating that the payments to be made on the security referred to in clause (b)(ii) of subsection (1) above will be sufficient to pay when due the principal of, premium, if any, and interest on the Bonds to be defeased; and 31 (4) if discharge is to be effected under clause (b) of subsection (1), an opinion of Bond Counsel is delivered to the Trustee stating in effect that such discharge will not impair the tax exempt status of the Bonds; then, except as otherwise provided in Article 7 and Sections 8.2 and 9.3, the rights of the Bondholders shall be limited to the cash or cash and securities deposited as provided in paragraph 1, clauses (a) or (b) above, and upon the Borrower's request the rights and interest hereby granted or granted by the Loan Agreement and the Collateral Documents to or for the benefit of the Trustee or Bondholders shall cease, terminate and become null and void, and the Issuer and the Trustee shall, at the expense of the Borrower, execute and deliver such instruments of satisfaction and transfer as may be necessary, and forthwith the estate, right, title and interest of the Trustee in and to all of the Project and in and to all rights under the Loan Agreement and this Indenture (except the money or securities or both deposited as required above and except as may otherwise be provided in Article 7 and Sections 8.2 and 9.3 shall thereupon be discharge and satisfied); except that in any event the obligations of the Borrower under Sections 7.4, 7.7, 7.8, 10.10, 10.11, 10.12, and 10.13 of the Loan Agreement shall survive. Section 7.2 Discharge of the Indenture. Notwithstanding the fact that the lien of this Indenture upon the Trust Estate may have been discharged and cancelled in accordance with Section 7.1 hereof, this Indenture and the rights granted and duties imposed hereby, to the extent not inconsistent with the fact that the lien upon the Trust Estate may have been discharged and cancelled, shall nevertheless continue and subsist until the principal of and the interest on, all of the Bonds shall have actually been paid in full and the Trustee shall have applied all funds theretofore held by the Trustee for payment of any Bonds not theretofore presented for payment or purchase, as the case may be, which funds shall be held in trust solely for the Holders of such Bonds pending their application in accordance herewith. (The remainder of this page is intentionally left blank.) 32 ARTICLE 8 DEFAULT PROVISIONS AND REMEDIES Section 8.1 Events of Default. Each of the following events is hereby defined as, and declared to be and to constitute, an "Event of Default" hereunder: (1) default in the due and punctual payment of any interest on any Bond; or (2) default in the due and punctual payment of the principal of any Bond at its Stated Maturity; or (3) if default shall be made in the due and punctual payment of any other money required to be paid to the Trustee under the provisions hereof and such default shall have continued for a period of 30 days after written notice thereof, specifying such default, shall have been given by the Trustee to the Issuer and the Borrower, or to the Issuer, the Borrower and the Trustee by the Holders of not less than 25% in aggregate principal amount of the then Outstanding Bonds; or (4) if default shall be made in the performance or observance of any other of the covenants, agreements or conditions on the part of the Issuer contained in this Indenture or in the Bonds, and such default shall have continued for a period of 30 days after written notice thereof given in the manner provided in clause (3) above. Notwithstanding the foregoing, if the default reasonably requires more than 30 days to cure, such default shall not constitute an Event of Default, provided that the curing of the default is promptly commenced upon receipt by the Issuer of the notice of the default, and with due diligence is thereafter continuously prosecuted to completion and is completed within a reasonable period of time, and provided that Issuer keeps the Trustee well informed at all times of its progress in curing the default; provided in no event shall such additional cure period extend beyond 60 days; or (5) the occurrence of an Act of Bankruptcy; or (6) the occurrence of an "Event of Default" under the Loan Agreement, the Security Documents or the Mortgage. The Investor Limited Partner or the Special Limited Partner in the Borrower shall have the right, but not the obligation, to cure Events of Default on behalf of the Borrower. Section 8.2 Acceleration. (1) Upon the occurrence of an Event of Default referred to in Section 8.1 hereof, the Trustee may, and at the written request of the Holders of not less than 25% in aggregate principal amount of the Outstanding Bonds shall, by notice in writing delivered to the Issuer and the Borrower declare the principal of all Bonds immediately due and payable, whereupon the same shall become immediately due and payable any time herein or in the Bonds to the contrary notwithstanding. (2) Upon any declaration of acceleration, or occurrence resulting in acceleration under this Section 8.2, the Trustee shall immediately declare the Basic Payments required to be made by the Borrower under the Loan Agreement to be immediately due and payable in accordance with Section 9.2 of the Loan Agreement. 33 (3) Upon any acceleration required under this Section 8.2, interest shall cease to accrue on the Bonds as of the date of declaration of such acceleration. (4) Except as provided in this Section 8.2, under no other circumstances may the Trustee accelerate the payment of the Bonds. Section 8.3. Remedies. (1) Subject to the provisions of Section 8.2, upon the occurrence of an Event of Default and acceleration of the Bonds, the Trustee may proceed to pursue any available remedy by suit at law or in equity to enforce all rights of the Bondholders, including without limitation the right to the payment of the principal or premium, if any, and interest on the then Outstanding Bonds. Upon the occurrence of an Event of Default under the Loan Agreement, the Trustee may also enforce any and all rights, if any, of the Issuer thereunder. The Issuer may also exercise any of its rights as provided in Section 9.12 of the Loan Agreement. (2) If any Event of Default shall have occurred, and if it shall have been requested to do so by the Holders of 75% in aggregate principal amount of the then Outstanding Bonds, and if it shall have received an indemnity bond as provided in Section 9.1 hereof, the Trustee shall be obliged to exercise such rights and powers conferred on the Trustee by this Section and Section 8.2 as the Trustee (being advised by Independent Counsel), shall deem most expedient in the interests of the Bondholders; provided, however, that the Trustee shall have the right to decline to comply with any such request if the Trustee shall be advised by Independent Counsel that the action so requested may not lawfully be taken or if the Trustee in good faith shall determine that such action would be unjustly prejudicial to the Bondholders not parties to such request. (3) No remedy by the terms of this Indenture conferred upon or reserved to the Trustee (or to the Bondholders) is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to any other remedy (i) given to the Trustee or to the Holders hereunder or (ii) now or hereafter existing at law or in equity or by statute. (4) No delay or omission to exercise any right or power accruing upon any Event of Default shall impair any such right or power or shall be construed to be a waiver of any such Event of Default, or acquiescence therein; and every such right and power may be exercised from time to time and as often as may be deemed expedient. (5) No waiver of any Event of Default hereunder, whether by the Trustee or by the Holders, shall extend to or shall affect any subsequent Event of Default or impair any rights or remedies consequent thereon. Section 8.4 Direction of Proceedings By Bondholders. The Holders of a majority in aggregate principal amount of the then Outstanding Bonds shall have the right, at any time, by an instrument or instruments in writing executed and delivered to the Trustee, to direct the method and place of conducting all proceedings to be taken in connection with the enforcement of the terms and conditions of this Indenture, the Loan Agreement, the Collateral Documents or for the appointment of a receiver or any other proceedings hereunder; provided, that such direction shall not be otherwise than in accordance with the provisions of law and of this Indenture. Section 8.5 Waiver of Stay or Extension Laws. Upon the occurrence of an Event of Default, to the extent that such rights may then lawfully be waived, neither the Issuer nor anyone claiming through it or under it shall or will set up, claim, or seek to take advantage of any appraisement, valuation, stay, 34 extension or redemption laws now or hereafter in force, in order to prevent or hinder the enforcement of this Indenture, but the Issuer, for itself and all who may claim through or under it, hereby waives to the extent that it lawfully may do so the benefit of all such laws and all right of appraisement and redemption to which it may be entitled under the laws of the State of Minnesota. Section 8.6 Priority of Payment and Application of Money. All money received by the Trustee pursuant to any right given or action taken under the provisions of this Article shall, after payment of the costs and expenses of the proceedings resulting in the collection of such other money and of the related expenses, liabilities and advances incurred or made by the Issuer or the Trustee, be deposited in the Bond Fund. All money in the Bond Fund shall be applied, subject to the provisions of Article 5, as follows: (1) Unless the principal of all the Bonds shall have become or shall have been declared due and payable, all such money shall be applied: FIRST: To the payment to the Persons entitled thereto of all installments of interest then due on the Bonds, in the order of the maturity of the installments of such interest and, if the amount available shall not be sufficient to pay in full any particular installment, then to the payment ratably, according to the amounts due on such installment, to the Persons entitled thereto, without any discrimination or privilege; SECOND: To the payment to the Persons entitled thereto the unpaid principal of any of the Bonds which shall have become due in the order of their due dates with interest on such Bonds at the applicable rate and, if the amount available shall not be sufficient to pay in full the unpaid principal on Bonds due on any particular due date, then to the payment ratably, according to the amount of principal and premium, if any, due on such date, to the Persons entitled thereto, without any discrimination or privilege; and (2) If the principal of all Bonds shall have become due or shall have been declared due and payable, all such money shall be applied to the payment of the principal and interest then due and unpaid upon the Bonds, without preference or priority of principal or any redemption premium over interest or of interest over principal or any redemption premium, or of any installment of interest over any other installment of interest, or of any Bond over any other Bond, ratably, according to the amounts due respectively for principal and interest, to the Persons entitled thereto, without any discrimination or privilege. (3) If the principal of all the Bonds shall have been declared due and payable, and if such declaration shall thereafter have been rescinded and annulled under the provisions of this Article, then, subject to the provisions of paragraph (2) of this Section in the event that the principal of all the Bonds shall later become due or be declared due and payable, the money shall be applied in accordance with the provisions of paragraph (1) of this Section. Whenever money is to be applied by the Trustee pursuant to the provisions of this Section, such money shall be applied by it at such times, and from time to time, as the Trustee shall determine, having due regard to the amount of such money available for application and the likelihood of additional money becoming available for such application in the future. Whenever the Trustee shall apply such funds, it shall (i) fix the date (which shall be an Interest Payment Date unless it shall deem another date more suitable) upon which such application is to be made and upon such date interest on the amounts of principal to be paid on such dates shall cease to accrue and (ii) on or before such date set aside the money necessary to effect such application. The Trustee shall give to the Bondholders mailed notice of the deposit with it of any such money and of the fixing of any such date. Neither the Trustee nor any Paying 35 Agent shall be required to make payment to the Holder of any Bond until such Bond shall be presented to the Trustee for appropriate endorsement or for cancellation if fully paid. Whenever all Bonds and interest thereon have been paid under the provisions of this Section 8.6, and all expenses and charges of the Trustee and the Issuer have been paid, any balance remaining shall be paid to the person entitled to receive the same pursuant to Section 12.9. Section 8.7 Remedies Vested in Trustee. All rights of action (including the right to file proof of claims) under this Indenture or under any of the Bonds may be enforced by the Trustee without the possession of any of the Bonds or the production thereof in any trial or other proceedings relating thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its name as Trustee without the necessity of joining as plaintiffs or defendants any Holders of the Bonds, and any recovery or judgment shall be for the equal benefit of the Holders of the Outstanding Bonds to the extent and in the manner provided herein. The Issuer and the Trustee hereby agree, without in any way limiting the effect and scope thereof, that the pledge and assignment hereunder to the Trustee of all rights included within the Trust Estate shall constitute an agency appointment coupled with an interest on the part of the Trustee which, for all purposes of this Indenture, shall be irrevocable and shall survive and continue in full force and effect notwithstanding the bankruptcy or insolvency of the Issuer or its default hereunder or on the Bonds. Section 8.8 Rights and Remedies of Holders. No Holder of any Bond shall have any right to institute any suit, action or proceeding in equity or at law for the enforcement of this Indenture, the Loan Agreement, or for the execution of any trust hereof or any remedy hereunder or thereunder or for the appointment of a receiver, unless: (1) a default thereunder shall have become an Event of Default and the Holders of 75% in aggregate principal amount of the Bonds then Outstanding shall have made written request to the Trustee and shall have offered it reasonable opportunity either to proceed to exercise the powers hereunder granted or to institute such action, suit or proceeding in its own name; (2) such Holders shall have offered to indemnify the Trustee as provided in Section 11.1(11); and (3) the Trustee shall thereafter fail or refuse to exercise within a reasonable period of time the remedies hereunder granted, or to institute such action, suit or proceeding in its own name. Such notification, request and offer of indemnity are hereby declared in every such case at the option of the Trustee to be conditions precedent to the execution of the powers and trusts of this Indenture, and to any action or cause of action for the enforcement of this Indenture, the Loan Agreement, or for the appointment of a receiver or for any other remedy hereunder; it being understood and intended that no one or more Holders of the Bonds shall have any right in any manner whatsoever to affect, disturb or prejudice the lien of this Indenture, by its, his or their action or to enforce any right thereunder except in the manner herein provided, and that all proceedings at law or in equity shall be instituted, had and maintained in the manner herein provided and for the equal benefit of the Holders of all Bonds then Outstanding, provided, however, that nothing herein shall be construed to preclude any Bondholder from enforcing, or impair the right of any Bondholder to enforce, the payment by the Trustee of principal of, and interest and premium, if any, on any Bond of such Bondholder at or after its date of maturity, if and to the extent that such payment is required to be made to such Bondholder by the Trustee from available funds in accordance with the terms hereof. Section 8.9 Termination of Proceedings. In case the Trustee shall have proceeded to enforce any right under this Indenture or the Loan Agreement by the appointment of a receiver, by entry and possession or otherwise, and such proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Trustee, then and in every such case the Issuer and the Trustee shall be restored to their former positions and rights hereunder with respect to the property herein conveyed, and all rights, remedies and powers of the Trustee shall continue as if no such proceedings had been taken. 36 Section 8.10 Waiver of an Event of Default. The Trustee may waive any Event of Default and its consequences and shall do so upon written request of the Holders of a majority in aggregate principal amount of the Bonds then Outstanding. No Event of Default giving rise to mandatory acceleration may be waived. No such waiver or rescission shall extend to any subsequent or other Events of Default, or impair any right consequent thereon. Section 8.11 Borrower as Agent of Issuer. (1) No default under Section 8.1(4) of this Indenture shall constitute an Event of Default until actual notice of such default by registered or certified mail shall be given by the Trustee to the Issuer, the Borrower, and the Issuer and the Borrower shall have had the time permitted by the applicable subsection after receipt of such notice to correct said default or cause said default to be corrected and the Issuer or Borrower shall not have corrected said default or caused said default to be corrected within said time. (2) With regard to any alleged default concerning which notice is given to the Borrower under the provisions of this Section 8.11, the Issuer hereby names and appoints the Borrower as its attorney -in -fact and agent with full authority to perform any covenant or obligation of the Issuer alleged in said notice to constitute a default, in the name and stead of the Issuer with full power to do any and all things and acts to the same extent that the Issuer could do and perform any such things and acts and with power of substitution; provided that the Borrower shall give the Issuer notice of its intention so to perform on behalf of the Issuer, and provided further that the Issuer may at any time, by a writing addressed to the Borrower withdraw, limit or modify the appointment hereby made. (The remainder of this page is intentionally left blank.) 37 ARTICLE 9 THE TRUSTEE Section 9.1 Acceptance of the Trustee. The Trustee, prior to the occurrence of an Event of Default, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture; and no implied covenants or obligations should be read into this Indenture against the Trustee. In case an Event of Default has occurred, the Trustee agrees to perform such trusts as an ordinarily prudent trustee under a corporate indenture, but in any such event, only upon and subject to the following express terms and conditions: (1) The Trustee may execute any of the trusts or powers hereof and perform any of its duties by or through attorneys, agents, receivers, or employees, but shall be answerable for the conduct of the same in accordance with the standard specified above, and shall be entitled to advice of counsel concerning all matters of trusts hereof and duties hereunder, and may in all cases pay such reasonable compensation to any attorney, agent, receiver or employee retained or employed by it in connection herewith. The Trustee may act upon the written opinion or written advice of any attorney, surveyor, engineer or accountant selected by it in the exercise of reasonable care or, if selected or retained by the Issuer, approved by the Trustee in the exercise of such care, provided that the only legal advice or opinion that the Trustee may rely upon for purposes of securing advice or an opinion relating to the tax exempt status of the Bonds is given by Bond Counsel. The Trustee shall not be responsible for any loss or damage resulting from any action or nonaction in good faith in reliance upon such opinion or advice. (2) The Trustee shall not be responsible for any recital herein, or in the Bonds (except with respect to the certificate of the Trustee endorsed on the Bonds) or for the investment of money as herein provided, except as may be provided in Section 6.1, or for the validity of the execution by the Issuer of this Indenture, or of any supplemental indentures or instruments of further assurance, or for the sufficiency of any security for the Bonds issued hereunder or intended to be secured hereby, or for the value of title of the property herein conveyed, if any, or otherwise as to the maintenance of the security hereof; except as otherwise provided in Section 4.4 and except that in the event the Trustee enters into possession of a part or all of the property conveyed pursuant to any provisions of this Indenture, it shall use due diligence in preserving such property. The Trustee may, but shall be under no duty to, require of the Borrower full information and advice as to the performance of the covenants, conditions and agreements in the Loan Agreement as to the condition of the Project and the performance of all other obligations thereunder and shall use its best efforts, but without any obligation, to advise the Issuer and the Borrower of any impending Event of Default known to the Trustee. (3) The Trustee shall not be accountable for the use or application by the Issuer or the Borrower of any of the Bonds or the proceeds thereof (except as herein expressly provided) or for the use or application of any money paid over by the Trustee in accordance with the provisions of this Indenture or for the use and application of money received by any Paying Agent. The Trustee may become the owner of Bonds secured hereby with the same rights it would have if not Trustee. (4) The Trustee shall be protected in acting upon any written notice, order, requisition, request, consent, certificate, opinion (including an opinion of Independent Counsel or Bond Counsel), affidavit, letter, telegram or other paper or document reasonably believed by it to be genuine and correct and to have been signed or sent by the proper person or persons. Any action taken by the Trustee pursuant to this Indenture upon the request or authority or consent of any person who at the time of making such request or giving such authority or consent is the Holder of any Bond, shall be conclusive 38 and binding upon all future Holders of the same Bond and upon Bonds issued in exchange therefor, upon transfer thereof, or in place thereof. (5) As to the existence or non - existence of any fact or as to the sufficiency or authenticity of any instrument, paper or proceeding, the Trustee shall be entitled to rely upon a certificate of the Issuer signed by the Issuer Representative as sufficient evidence of the facts stated therein as the same appear from the books and records under the Issuer Representative's custody or control or are otherwise known to him. The Trustee may accept a certificate of the Issuer Representative under the seal of the Issuer to the effect that a motion, resolution or ordinance in the form therein set forth has been adopted by the governing body of the Issuer as conclusive evidence that such motion, resolution or ordinance has been duly adopted, and is in full force and effect, and may accept such motion, resolution or ordinance as sufficient evidence of the facts stated therein and the necessity or expediency of any particular dealing, transaction or action authorized or approved thereby, but may at its discretion, secure such further evidence deemed necessary or advisable, but shall in no case be bound to secure the same. (6) The Trustee shall not be answerable except for its own negligence, willful misconduct or willful default. (7) The Trustee shall not be personally liable for any debts contracted or for damages to persons or to personal property injured or damaged, or for salaries or nonfulfillment of contracts during any period in which they may be in possession of or managing the real and tangible personal property as in this Indenture provided. (8) At any and all reasonable times, the Trustee, and its duly authorized agents, attorneys, experts, engineers, accountants and representatives, shall have the right fully to inspect any and all of the property comprising the Project, including all books, papers and records of the Issuer pertaining to the Project and the Bonds, and to take such memoranda from and with regard thereto as may be desired. (9) The Trustee shall not be required to give any bond or surety with respect to the execution of said trusts and powers or otherwise in respect to the premises. (10) Notwithstanding anything elsewhere in this Indenture contained, the Trustee shall have the right, but shall not be required, to demand, with respect to the authentication of any Bonds, the withdrawal of any cash, the release of any property or any action whatsoever within the purview of this Indenture, any showings, certificates, opinions (including opinions of Independent Counsel), appraisals or other information, or corporate action or evidence thereof, in addition to that by the terms hereof required as a condition of such action by the Trustee, deemed desirable for the purpose of establishing the right of the Issuer to the authentication of any Bonds, the withdrawal of any cash, the release of any property, or the taking of any other action by the Trustee. (11) Before taking any action under this Indenture, the Trustee may require that they be furnished an indemnity bond satisfactory to them for the reimbursement of all expenses to which they may be put and to protect them against all liability except liability which is adjudicated to have resulted from the negligence, willful misconduct or willful default of the Trustee, by reason of any action so taken by the Trustee. (12) All money received by the Trustee, the Paying Agent or any Co- Paying Agent for the Bonds shall, until used or applied or invested as herein provided, be held in trust for the purposes for which they were received but need not be segregated from other funds except to the extent required herein or by law. Neither the Trustee, the Paying Agent, nor any Co- Paying Agent shall be under any liability for interest on any money received hereunder except such as may be agreed upon. 39 (13) No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of their duties hereunder, or in the exercise of any of their rights or powers, if they shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to them. (14) The Trustee shall make no representation as to the validity or adequacy of this Indenture or the Bonds, it shall not be accountable for the Issuer's use of the proceeds of the Bonds or any money paid to the Issuer or upon the Issuer's direction under any provision hereof, it shall not be responsible for the use or application of any money received by any Paying Agent other than the Trustee and it shall not be responsible for any statement or recital herein or any statement in the Bonds or any other document in connection with the sale of the Bonds or pursuant to this Indenture other than its certificate of authentication. Section 9.2 Trustee's Fees, Charges and Expenses. The Trustee and any Paying Agent shall be entitled to payment and /or reimbursement for reasonable fees for services rendered hereunder and all advances, counsel fees and other expenses reasonably and necessarily made or incurred by the Trustee in and about the execution of the trusts created by this Indenture and in and about the exercise and performance of the powers and duties of the Trustee hereunder and for the reasonable and necessary costs and expenses incurred in defending any liability in the premises of any character whatsoever (unless such liability is adjudicated to have resulted from the negligence, willful misconduct or willful default of the Trustee). In this regard the Issuer has made provisions in Section 4.4 of the Loan Agreement for the payment of said fees, advances, counsel fees, costs and expenses and reference is hereby made to the Loan Agreement for the provisions so made; and the Issuer shall not otherwise be liable for the payment of such sums. Upon an Event of Default, but only upon an Event of Default, the Trustee shall have a first lien with right of payment prior to payment on account of interest on or principal or premium, if any, of any Bond and upon the money received by it hereunder, for said fees, advances, counsel fees, costs and expenses incurred by it. Section 9.3 Notice to Holders of Default. The Trustee shall give to the Bondholders written notice of all Events of Default known to the Trustee, within 90 days after the occurrence of an Event of Default; provided that, except in the case of an Event of Default in the payment of the principal of or interest on any of the Bonds, the Trustee shall be protected in withholding such notice if and so long as the Board of Directors, the executive committee or a trust committee of directors or chief executive officer of the Trustee in good faith determine that the withholding of such notice is in the interest of the Holders. Section 9.4 Intervention by Trustee. In any judicial proceeding to which the Issuer is a party and which in the opinion of the Trustee and its counsel has a substantial bearing on the interests of Holders of Bonds, the Trustee may intervene on behalf of Holders and shall do so if requested in writing by the Holders of at least 25% of the aggregate principal amount of Outstanding Bonds. The rights and obligations of the Trustee under this Section are subject to the approval of a court of competent jurisdiction in the premises. Section 9.5 Successor Trustee. Any corporation, association or agency into which the Trustee may be converted or merged, or with which it may be consolidated, or to which it may sell or transfer its trust business and assets as a whole or substantially as a whole, or any corporation or association resulting from any such conversion, sale, merger, consolidation or transfer to which it is a party, ipso facto, shall be and become successor trustee and paying agent under this Indenture and vested with all of the title to the Trust Estate, and all the trusts, powers, discretions, immunities, privileges and El all other matters as was its predecessor, without the execution or filing of any instrument or any further act, deed or conveyance on the part of any of the parties hereto, anything herein to the contrary notwithstanding. Section 9.6 Resignation by Trustee. The Trustee and any successor trustee may at any time resign from the trusts hereby created by giving 30 days written notice to the Issuer and to the Borrower and by first class mail to each Holder of Bonds as shown on the Bond Register, and such resignation shall take effect upon the appointment of a successor trustee by the Holders or by the Issuer. Such notice to the Issuer and the Borrower may be served personally or sent by registered mail. Section 9.7 Removal of Trustee. The Trustee may be removed at any time by an instrument or concurrent instruments in writing delivered to the Trustee, to the Borrower and to the Issuer, and signed by the Holders of a majority in aggregate principal amount of then Outstanding Bonds. Such removal shall only take effect upon the appointment of a successor trustee. Section 9.8 Appointment of Successor Trustee. In case the Trustee shall resign or be removed, or be dissolved or shall be in course of dissolution or liquidation, or otherwise become incapable of acting hereunder, or in case it shall be taken under the control of any public officer or officers, or of a receiver appointed by a court, a successor may be appointed by the Holders of a majority in aggregate principal amount of the then Outstanding Bonds, by an instrument or concurrent instruments in writing signed by such Holders, or by their attorney -in -fact, duly authorized. Nevertheless, in case of such vacancy the Issuer by resolution of its governing body may appoint a temporary trustee to fill such vacancy until a successor trustee shall be appointed by the Holders in the manner above provided; and any such temporary trustee so appointed by the Issuer shall immediately and without further act be superseded by the trustee so appointed by such Holders. Every such Trustee appointed pursuant to the provisions of this Section 9.8 shall be a trust company or bank having trust powers and having a reported capital and surplus not less than $25,000,000, if there be such an institution willing, qualified and able to accept the trust upon reasonable or customary terms. Section 9.9 Acceptance by Successor Trustees. Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to its predecessor, to the Borrower and also to the Issuer, an instrument in writing accepting such appointment hereunder, and thereupon such successor, without any further act, deed or conveyance shall become fully vested with all the estates, properties, rights, powers, trusts, duties and obligations of its predecessors as Trustee and Paying Agent; but such predecessor shall, nevertheless, on the written request of the Issuer, or of its successor Trustee, execute and deliver an instrument transferring to such successor Trustee all the estates, properties, rights, powers and trusts of such predecessor hereunder, and every predecessor Trustee shall deliver all securities and money held by it as Trustee hereunder to its successor. Should any instrument in writing from the Issuer be required by any successor Trustee for more fully and certainly vesting in such successor the estates, rights, powers and duties hereby vested or intended to be vested in the predecessor trustee, any and all such instruments in writing shall, on request, be executed, acknowledged and delivered by the Issuer. The resignation of any Trustee and the instrument or instruments removing any Trustee and appointing a successor hereunder, together with all other instruments provided for in this Article, shall be forthwith filed or recorded or both by the successor Trustee in each recording office where the Indenture shall have been filed or recorded or both. Section 9.10 Right of Trustee to Pay Taxes and Other Charges. If any tax, assessment or governmental or other charge upon any part of the Trust Estate is not paid as required herein, the Trustee may pay such tax, assessment or charge, without prejudice, however, to any rights of the Trustee or the Bondholders hereunder arising in consequence of such failure; and any amount at any time so paid under this Section, or under the Loan Agreement, with interest thereon (to the extent permitted by law) from the 41 date of such payment until paid to the Trustee in full at a rate per annum equal to the prime rate, shall become so much additional indebtedness secured hereby, and the same shall be given a preference in payment over the principal of and the interest on, the Bonds and shall be paid out of the revenues and receipts from the Trust Estate, if not otherwise caused to be paid. The Trustee shall not be under an obligation to make any such payment unless it shall have been requested to do so by the Holders of at least 25% in principal amount of the Bonds then Outstanding and shall have been provided with sufficient money for the purpose of making such payment. Section 9.11 Trustee Protected in Relying Upon Resolutions. The resolutions, orders, requisitions, opinions, certificates and other instruments provided for in this Indenture may be accepted by the Trustee as conclusive evidence of the facts and conclusions stated therein and shall be full warrant, protection and authority to the Trustee. Section 9.12 Successor Trustee as Custodian of Bond Fund and Paying_ Age nt. In the event of a change in the office of the Trustee the predecessor trustee which has resigned or been removed shall cease to be custodian of the funds described in Article 5 and shall cease to act as the Paying Agent for principal and interest on the Bonds, and the successor trustee shall be and become such custodian and Paying Agent. Section 9.13 Co- Trustee. At any time or times, for the purpose of meeting any legal requirements of any jurisdiction in which any, part of the Trust Estate may at the time be located, the Issuer and the Trustee shall have the power to appoint, and, upon the request of the Trustee or of the Holders of at least 51% in aggregate principal amount of the then Outstanding Bonds, the Issuer shall for such purpose join with the Trustee in the execution, delivery and performance of all instruments and agreements necessary or proper to appoint one or more persons approved by the Trustee either to act as co- trustee or co- trustees, jointly with the Trustee, of all or any part of the Trust Estate, or to act as separate trustee or separate trustees of all or any part of the Trust Estate, and to vest in such person or persons, in such capacity, such right to the Trust Estate or any part thereof, and such rights, powers, duties, trusts or obligations as the Issuer and the Trustee may consider necessary or desirable subject to the remaining provisions of this Section 9.13. If the Issuer shall not have joined in such appointment within 15 days after the receipt by it of a request so to do, or in case an Event of Default shall have occurred and be continuing, the Trustee alone shall have power to make such appointment. The Issuer shall execute, acknowledge and deliver all such instruments as may be required by any such co- trustee or separate trustee for more fully confirming such title, rights, powers, trusts, duties and obligations to such co- trustee or separate trustee. Every co- trustee or separate trustee shall, to the extent permitted by law but to such extent only, be appointed subject to the following terms, namely: (1) The Bonds shall be authenticated and delivered, and all rights, powers, trusts, duties and obligations by this Indenture conferred upon the Trustee in respect of the custody, control or management of money, papers, securities and other personal property shall be exercised solely by the Trustee. (2) All rights, powers, trusts, duties and obligations conferred or imposed upon the trustees shall be conferred or imposed upon and exercised or performed by the Trustee, or by the Trustee and such co- trustee or co- trustees or separate trustee or separate trustees jointly, as shall be provided in the instrument appointing such co- trustee or co- trustees or separate trustee or separate trustees, except to the extent that, under the law of any jurisdiction in which any particular act or acts are to be performed, the 42 Trustee shall be incompetent or unqualified to perform such act or acts, in which event such act or acts shall be performed by such co- trustee or co- trustees or separate trustee or separate trustees. (3) Any request in writing by the Trustee to any co- trustee or separate trustee to take or to refrain from taking any action hereunder shall be sufficient warrant for the taking, or the refraining from taking, of such action by such co- trustee or separate trustee. (4) Any co- trustee or separate trustee may delegate to the Trustee the exercise of any right, power, trust, duty or obligation, discretionary or otherwise. (5) The Trustee at any time, by an instrument in writing, with the concurrence of the Issuer, may accept the resignation of or remove any co- trustee or separate trustee appointed under this Section 9.13, and, in case of a continuing Event of Default the Trustee shall have power to accept the resignation of, or remove, any such co- trustee or separate trustee without the concurrence of the Issuer. Upon the request of the Trustee, the Issuer shall join with the Trustee in the execution, delivery and performance of all instruments and agreements necessary or proper to effectuate such resignation or removal. A successor to any co- trustee or separate trustee so resigned or removed may be appointed in the manner provided in this Section 9.13. (6) No trustee hereunder shall be personally liable by reason of any act or omission of any other trustee hereunder. (7) Any demand, request, direction, appointment, removal, notice, consent, waiver or other action in writing delivered to the Trustee shall be deemed to have been delivered to each co- trustee or separate trustee. (8) Any money, papers, securities or other items of personal property received by any such co- trustee or separate trustee hereunder shall forthwith, so far as may be permitted by law, be turned over to the Trustee. Upon the acceptance in writing of such appointment by any such co- trustee or separate trustee, it or he shall be vested with such interest in and to the Trust Estate or any part thereof, and with such rights, powers, duties or obligations, as shall be specified in the instrument of appointment jointly with the Trustee (except insofar as local law makes it necessary for any such co- trustee or separate trustee to act alone) subject to all the terms of this Indenture. Every such acceptance shall be filed with the Trustee. Any co- trustee or separate trustee may, at any time by an instrument in writing, constitute the Trustee its or his attorney -in -fact and agent, with full power and authority to do all acts and things and to exercise all discretion on its or his behalf and in its or his name. In case any co- trustee or separate trustee shall die, become incapable of acting, resign or be removed, the title to the Trust Estate and all rights, powers, trusts, duties and obligations of said co- trustee or separate trustee shall, so far as permitted by law, vest in and be exercised by the Trustee unless and until a successor co- trustee or separate trustee shall be appointed in the manner herein provided. Section 9.14 Obligation to Trustee as to Reporting. The Trustee shall, at the request of the Borrower, cause to be filed any reports lawfully required by any public agency to be filed under any applicable security laws and any other reports lawfully required by any public agency to be filed under the Act or any other applicable state law. For this purpose the Trustee is entitled to require the Borrower to cause to be furnished to the Trustee whatever information is necessary to comply with such reporting requirements at the Borrower's sole expense. 43 Section 9.15 Successor Paying Agent. The provisions of Sections 9.5 through 9.9 with respect to removal, resignation and appointment of a successor trustee shall be equally applicable to resignation, removal and appointment of a successor to the Paying Agent. The Trustee shall be eligible for appointment as successor to the Paying Agent. Section 9.16 Confirmation of the Trustee. (1) At any time while Bonds remain Outstanding under this Indenture and in any of the following circumstances, to the extent permitted by law, to -wit: (a) The Trustee is in doubt as to whether or not the Indenture or any Related Document or instrument requires Bondholders' consent or the consent of the Borrower, any guarantor, or the Issuer in connection with any proposed action; (b) The Trustee has substantial doubt as to whether its consent to a proposed action, although authorized, should in the particular circumstances be given; (c) The Trustee's consent is sought or deemed necessary in connection with a proposed action which is not specifically dealt with or contemplated by the Indenture or any other Related Document, or it is unclear whether the Indenture or other Related Document is intended to deal with the proposed action; (d) There is a disagreement between any of the parties to the Indenture or any other Related Document as to whether a proposed action may be taken or is required to be taken; (e) There appears to be a conflict, ambiguity or inconsistency between or among the provisions of the Indenture and any other Related Document other than as provided for in Sections 10.1 and 11.1 hereof; (g) There is doubt as to whether or not a proposed action falls within one of the provisions of Sections 10.1 and 11.1 hereof authorizing such action without Bondholders' consent; (g) Bondholders' consent is required by this Indenture or Related Document but consent cannot be obtained because: (i) it is not possible to comply with requirements of this Indenture or any other Related Document as to the notice to be given to Bondholders with respect to the proposed matter requiring consent, or (ii) if action is to be taken at a meeting of Bondholders, the requisite number of Bondholders (the quorum) necessary to be present at a meeting in order for a proposed action to be taken was not present at such meeting or any adjourned meeting; (h) The Trustee wishes to depart from the procedures set forth in Section 12.3 for purposes of calling or conducting a meeting of the Bondholders; or in any other eventuality in which it shall be necessary to determine a question arising under or to construe this Indenture or any other Related Document, the Trustee may, and upon request of the Issuer, the Borrower or the Holders of 25% or more in principal amount of Outstanding Bonds shall, proceed in accordance with the provisions of Minnesota Statutes, Section 501.33 through 501.38, as amended. 44 If Bondholder's consent cannot be obtained because of the circumstances described in (1)(g) above a court of competent jurisdiction may amend or supplement the Loan Agreement or Indenture or any Related Document upon a proper showing of the necessity therefor. (2) In construing and interpreting the Indenture and any other Related Document, the objective shall always be to ascertain and effectuate the intention of the parties. So far as possible and appropriate, and to the extent that it does not conflict with the provisions of the Indenture or the other Related Documents, the principles of statutory construction enunciated in Minnesota Statutes, Sections 645.16, 645.17, 645.18, 645.19 and 645.20, as amended, shall be applied in the interpretation and construction of the Indenture and other Related Documents. (3) The Trustee or successor Trustee shall not be answerable for actions taken in compliance with any final order of the court. The Trustee or successor Trustee shall not be entitled to require an indemnity bond pursuant to Section 9. 1, Subdivision (I1), prior to taking any action directed by final order of the court. (The remainder of this page is intentionally left blank.) 45 ARTICLE 10 SUPPLEMENTAL INDENTURES Section 10.1 Supplemental Indentures Not Requiring Consent of Bondholders. The Issuer and the Trustee may, from time to time and at any time, without the consent of, or notice to, any of the Holders, and when so required by this Indenture shall, enter into an indenture or indentures supplemental to this Indenture as shall not be inconsistent with the terms and provisions hereof (which supplemental indenture or indentures shall thereafter form a part hereof), so as to thereby (1) cure any ambiguity or formal defect or omission in this Indenture or in any supplemental indenture, (2) grant to or confer upon the Trustee for the benefit of the Holders any additional rights, remedies, powers, authority or security that may lawfully be granted to or conferred upon the Holders or the Trustee, (3) more precisely identify the Trust Estate, or any other property which may become a part of the Trust Estate, (4) subject to the lien and pledge of this Indenture additional revenues, properties or collateral, (5) evidence the appointment of a separate trustee or a co- trustee or the succession of a new Trustee and/or Paying Agent hereunder, (6) modify, eliminate and/or add to the provisions of this Indenture to such extent as shall be necessary to prevent any interest on the Bonds from becoming taxable under the Federal income tax laws or to effect the qualification of this Indenture under the Trust Indenture Act of 1939, as then amended, or under any similar Federal statute hereafter enacted, and to add to this Indenture such other provisions as may be expressly permitted by said Trust Indenture Act of 1939, excluding however the provisions referred to in Section 316(a)(2) of said Trust Indenture Act of 1939, (7) make any other change which is required by any provision of this Indenture or which is deemed by the Trustee necessary to reconcile the Indenture with the Related Documents, or any amendments thereto, or (8) make any other change which in the judgment of the Trustee is necessary or desirable and will not materially prejudice any non - consenting Holder of a Bond. Section 10.2 Supplemental Indentures Requiring Consent of Holders. Exclusive of supplemental indentures covered by Section 10.1 hereof and subject to the terms and provisions contained in this Section, and not otherwise, the Trustee, upon receipt of an instrument evidencing the consent to the below- mentioned supplemental indenture by the Holders of not less than 51 % of the aggregate principal amount of the then Outstanding Bonds of the series affected thereby, shall join with the Issuer in the execution of such other indenture or indentures supplemental hereto as shall be deemed necessary and desirable for the purpose of modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or provisions contained in this Indenture or in any supplemental indenture; provided, however, that nothing herein contained shall permit or be construed as permitting (1) an extension of the maturity of the principal or of the interest on any Bond issued hereunder, or (2) a reduction in the principal amount of any Bond or the rate of interest thereon or any premium thereon, or (3) a privilege or priority of any Bond or Bonds over any other Bond or Bonds except as may be otherwise expressly provided herein, or (4) a reduction in the aggregate principal amount of the Bonds required for consent to such supplemental indenture, or (5) modifying any of the provisions of this Section without the consent of the Holders of 100% of the principal amount of all Bonds adversely affected thereby ( "100% Bondholders' Consent "). If at any time the Issuer shall request the Trustee to enter into any such supplemental indenture for any of the purposes of this Section which does not require 100% Bondholders' Consent, the Trustee shall, upon being satisfactorily indemnified with respect to expenses, cause notice of the proposed execution of such supplemental indenture to be mailed by first class mail, postage prepaid, to the Holders of the Bonds at the addresses shown on the Bond Register. Such notice shall briefly set forth the nature of the proposed supplemental indenture and shall state that copies thereof are on file at the principal office of the Trustee for inspection by all Bondholders. The Trustee shall not, however, be subject to any 46 liability to any Bondholder by reason of its failure to mail such notice to any particular Bondholder if notice was generally mailed to Bondholders, and any such failure shall not affect the validity of such supplemental indenture when consented to and approved as provided in this Section. If the Holders of not less than 51 % in aggregate principal amount of the then Outstanding Bonds at the time of the execution of any such supplemental indenture shall have consented to and approved the execution thereof as herein provided, no Holder of any Bond shall have any right to object to any of the terms and provisions contained herein or the operation thereof, or in any manner to question the propriety of the execution thereof, or to enjoin or restrain the Trustee or the Issuer from executing the same or from taking any action pursuant to the provisions thereof. Upon the execution of any such supplemental indenture as in this Section permitted and provided, this Indenture shall be and is deemed to be modified and amended in accordance herewith. Anything herein to the contrary notwithstanding, a supplemental indenture under this Article 10 which adversely affects the right of the Borrower under the Loan Agreement shall not become effective unless and until the Borrower shall have consented in writing to the execution and delivery of such supplemental indenture. In this regard, the Trustee shall cause notice of the proposed execution and delivery of any such supplemental indenture, together with a copy of the proposed supplemental indenture, to be mailed by certified or registered mail to the Borrower, the Investor Limited Partner and the Special Limited Partner at least 30 days prior to the proposed date of execution and delivery of any such supplemental indenture. Section 10.3 Rialits of Trustee. If, in the opinion of the Trustee, any supplemental indenture provided for in this Article affects the rights, duties or immunities of the Trustee under this Indenture or otherwise, the Trustee may, in its discretion, decline to execute such supplemental indenture, except to the extent that this may be required in the case of a supplemental indenture entered into under Section 10.1. The Trustee shall be entitled to receive, and shall be fully protected in relying upon, an opinion of Independent Counsel as conclusive evidence that any such supplemental indenture conforms to the requirements of this Indenture. 47 ARTICLE 11 AMENDMENTS TO AGREEMENT AND RELATED DOCUMENTS Section 11.1 Amendments Not Requiring Bondholder Consent. The Issuer and /or the Trustee may, without the consent of or notice to the Bondholders, consent to any amendment, change or modification of the Related Documents: (1) which may be required or permitted without Bondholder consent by the provisions of the Related Documents or this Indenture; (2) for the purpose of curing any ambiguity or formal defect or omission; (3) to reconcile the Related Documents with any amendment or supplement to the Indenture; or (4) to effect any other change to the Related Documents which, in the judgment of the Trustee, will not materially prejudice any non - consenting Holder of a Bond. Section 11.2 Amendments Requiring Bondholder Consent. Except for amendments, changes or modifications as provided in Section 11. 1, neither the Issuer nor the Trustee shall consent to any other amendment, change or modification of the Related Documents, without the giving of notice and the written approval or consent of the Holders of not less than 51 % in aggregate principal amount of the Bonds of the series affected thereby, then Outstanding given and procured as provided in this Section; provided that in no event shall such amendment, change or modification relieve the Borrower of the obligation under the Related Documents to make when and as due any payments required for the payment of principal, interest and any premium due or to become due on the Bonds unless the consent of the Holders of all Bonds adversely affected thereby is first secured. If at any time the Issuer and the Borrower shall request the consent of the Trustee to any such proposed amendment, change or modification any Related Documents the Borrower shall request consent of the Trustee to any such proposed amendment, change or modification, the Trustee shall, upon being satisfactorily indemnified with respect to expenses, cause notice of such proposed amendment, change or modification to be given in the same manner as provided in Section 10.2 hereof with respect to supplemental indentures. Such notice shall briefly set forth the nature of such proposed amendment, change or modification and shall state that copies of the instrument embodying the same are on file at the principal office of the Trustee for inspection by all Holders. The Trustee shall not, however, be subject to any liability to any Holder by reason of its failure to mail such notice to any particular Bondholder if notice was generally mailed to Bondholders, and any such failure shall not affect the validity of such amendment, change or modification when consented to and approved as provided in this Section. If the Holders of not less than 51% in aggregate principal amount of the Bonds then Outstanding at the time of the execution of any such amendment shall consent to the execution thereof as herein provided, no Holder of any Bond shall have any right to object to any of the terms and provisions contained therein, or the operation thereof, or in any manner to question the propriety of the execution thereof, or to enjoin or restrain the Trustee or the Issuer from executing the same or from taking any action pursuant to the provisions thereof. Upon the execution of any such amendment, the affected Related Document shall be deemed to be modified and amended in accordance therewith. Nothing in this Section contained shall permit or be construed as permitting any reduction in the payments required to be made (i) by Section 4.2 of the Loan Agreement or (ii) permitting a reduction or change in the Stated Maturities of the Bonds. 48 ARTICLE 12 MISCELLANEOUS PROVISIONS Section 12.1 Consent of Holders. Any consent, request, direction, approval, objection or other instrument required by this Indenture to be signed and executed by the Holders may be in any number of concurrent writings of similar tenor and must be signed or executed by such Holders in person or by agent appointed in writing. Proof of the execution of any such consent, request, direction, approval, objection or other instrument or of the writing appointing any such agent and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the purposes of this Indenture, and shall be conclusive in favor of the Trustee with regard to any action taken by it under such request or other instrument, namely: (1) The fact and date of the execution by any Person of any such writing may be proved by the certificate of any officer in any jurisdiction who by law has power to take acknowledgments within such jurisdiction that the Person signing such writing acknowledged before him the execution thereof, or by an affidavit of any witness to such execution. (2) The fact of the ownership by any Person of Bonds and the amounts and numbers of such Bonds, and the date of the holding of the same, may be proved only by reference to the Bond Register. Section 12.2 Rights Under Indenture. With the exception of rights herein expressly conferred, nothing expressed or mentioned in or to be implied from this Indenture or the Bonds is intended or shall be construed to give any person or company other than the parties hereto, and the Bondholders, any legal or equitable right, remedy, or claim under or in respect to this Indenture or any covenants, conditions and provisions herein contained; this Indenture and all of the covenants, conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of the parties hereto and the Holders of the Bonds hereby secured as herein provided. Section 12.3 Meetings of Bondholders. (1) A meeting of Bondholders may be called at any time and from time to time pursuant to this Section to facilitate any of the following purposes: (a) to give any notice to the Issuer, the Borrower or the Trustee, or to give any directions to the Trustee, or to consent to the waiving of any default under this Indenture, or to take any other action authorized to be taken by the Bondholders under this Indenture; (b) to remove the Trustee or to appoint a successor trustee pursuant to Sections 9.7 and 9.8 of this Indenture; (c) to consent to the execution of a supplemental indenture pursuant to Section 10.2 hereof, or to consent to the execution of an amendment, change or modification of any Related Document pursuant to Section 11.2 hereof; or (d) to take any other action authorized to be taken by or on behalf of the Holders of any specified aggregate principal amount of the Bonds under any other provision of this Indenture or under applicable law. 49 (2) Meetings of Bondholders may be held at such place or places as the Trustee or, in case of its failure to act, the Bondholders calling the meeting, shall from time to time determine. (3) The Trustee may at any time call a meeting of Bondholders to be held at such time and at such place as the Trustee shall determine. Notice of every meeting of Bondholders setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be mailed by first class mail, postage prepaid, to the Holders of the Bonds at the address shown on the Bond Register. Any failure of the Trustee to mail such notice to a particular Bondholder, or any defect therein shall not, however, in any way impair or affect the validity of any such meeting if notice was generally mailed to Bondholders. In the event that the Holders of at least 10% in aggregate principal amount of the Outstanding series of Bonds affected shall have requested the Trustee to call a meeting of the Bondholders by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have accomplished the mailing of notice of such meeting within 20 days after receipt of such request, then such Bondholders may determine the time and the place for such meeting and may call such meeting to take any action authorized in paragraph (1) of this Section by giving notice of such meeting in accordance with the provisions of this paragraph (3). (4) To be entitled to vote at any meeting of Bondholders, a person shall be a Holder of one or more Bonds Outstanding, or a person appointed by an instrument in writing as proxy for a Bondholder by such Bondholder. The only persons who shall be entitled to be present or to speak at any meeting of Bondholders shall be the persons entitled to vote at such meeting and their counsel and any representatives of the Trustee, Borrower, and Issuer and their counsel. (5) Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Bondholders in regard to proof of the ownership of Bonds and of the appointment of proxies and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate. Except as otherwise permitted or required by any such regulations, the ownership of Bonds shall be proved in the manner specified in Section 12.1 of this Indenture and the appointment of any proxy shall be proved in the manner specified in said Section or by having the signature of the person executing the proxy witnessed or guaranteed by any bank, banker or trust company authorized by said Section to certify to the ownership of Bonds: (a) The Trustee or, if the Bondholders have called the meeting, the Bondholders shall, by an instrument in writing, appoint a temporary chairperson of the meeting. A permanent chairperson and a permanent secretary of the meeting shall be elected by vote of the Holders of a majority of the Bonds represented at the meeting and entitled to vote. (b) At any meeting such Bondholder or proxy shall be entitled to one vote for each $5,000 of principal amount of Outstanding Bonds owned or represented by him or her; provided, however, that no vote shall be cast or counted at any meeting in respect of any Bond challenged as not Outstanding and ruled by the chairperson of the meeting to be not Outstanding. The chairperson of the meeting shall have no right to vote, except as a Bondholder or proxy. (c) At any meeting of Bondholders, the presence of persons owning or representing Bonds in an aggregate principal amount sufficient under the appropriate provision of this Indenture to take action upon the business for the transaction of which such meeting was called shall constitute a quorum. Any meeting of Bondholders duly called pursuant to this Section may be adjourned from time to time by vote of the Holders (or proxies for the Holders) of a majority 50 of the Bonds represented at the meeting and entitled to vote, whether or not a quorum shall be present; and the meeting may be held as so adjourned without further notice. (6) The vote upon any resolution submitted to any meeting of Bondholders shall be by written ballots on which shall be subscribed the signatures of the Bondholders or of their proxies and the number or numbers of the Bonds Outstanding held or represented by them. The permanent chairperson of the meeting shall appoint two inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in triplicate of all votes cast at the meeting. A record, at least in triplicate, of the proceedings of each meeting of Bondholders shall be prepared by the secretary of the meeting. The original reports of the inspectors of votes on any vote by ballot taken at such meeting, and affidavits by one or more persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was published or mailed as provided in this Section shall be attached to such record. Each copy shall be signed and verified by the affidavits of the permanent chairperson and secretary of the meeting and one such copy shall be delivered to the Issuer, another to the Borrower and another to the Trustee to be preserved by the Trustee, which copy shall have attached thereto the ballots voted at the meeting. Any record so signed and verified shall be conclusive evidence of the matters therein stated. (7) At any time prior to the preparation of the record of the meeting in accordance with the terms of this Section for delivery to the Trustee evidencing the taking of any action by the Holders of the percentage in aggregate principal amount of the Bonds specified in this Indenture in connection with such action, any Holder of a Bond the number of which is included in the Bonds, the Holders of which have consented to such action, may, by filing written notice with the Trustee at its principal corporate trust office and upon proof of holding as provided in Section 12.1 of this Indenture, revoke such consent so far as it concerns such Bond. Except as aforesaid, any such consent given by the Holder of any Bond shall be conclusive and binding upon such Holder and upon all future Holders and owners of such Bond and of any Bond issued in exchange therefor, upon transfer thereof, or in lieu thereof, irrespective of whether or not any notation in regard thereto is made upon such Bond. Any action taken by the Holders of the percentage in aggregate principal amount of the Bonds specified in this Indenture in connection with such action shall be conclusively binding upon the Issuer, the Borrower, the Trustee and the Holders of all the Bonds. (8) Nothing in this Section 12.3 is intended to limit or prevent the Trustee from taking any action permitted under Section 9.16 of this Indenture, including but not limited to the Trustee's right to apply to a court of competent jurisdiction for confirmation of appointment, or for instructions in accordance with the provisions of Minnesota Statutes, Sections 501.33 through 501.38, as amended. Section 12.4 Severability. If any provision of this Indenture shall be held or deemed to be or shall, in fact, be inoperative or unenforceable as applied in any particular case in any jurisdiction or jurisdictions or in all jurisdictions or in all cases because it conflicts with any provisions of any constitution or statute or rule of public policy, or for any other reason, such circumstances shall not have the effect of rendering the provision in question inoperative or unenforceable in any other case or circumstance, or of rendering any other provisions herein contained invalid, inoperative or unenforceable to any extent whatever. The invalidity of any one or more phrases, sentences, clauses or paragraphs in this Indenture contained shall not affect the remaining portions of this Indenture or any part thereof. Section 12.5 Notices. All notices, certificates or other communications hereunder shall be in writing (except as otherwise expressly provided herein) and shall be sufficiently given and shall be deemed given when mailed by first class mail, postage prepaid, with proper address as indicated below. 51 The Issuer, the Borrower, the Bondholders and the Trustee may, by written notice given by each to the others, designate any address or addresses to which notices, certificates or other communications to them shall be sent when required as contemplated by this Indenture. Until otherwise provided by the respective parties, all notices, certificates and communications to each of them shall be addressed as follows: To the Issuer: City of Edina, Minnesota 4801 West 50`x' Street Edina, Minnesota 55424 Attn: City Finance Director To the Borrower: Yorktown Continental, LP Attn: With a copy to: Winthrop & Weinstine P.A. 222 South Sixth Street, Suite 3500 Minneapolis, MN 55402 -4629 Attn: Norman Jones, Esq. And: Attn: To the Trustee: U.S. Bank National Association St. Paul, MN Attn: Corporate Trust Services To the Original Purchaser of Dougherty & Company LLC the Bonds: 90 South 7t', Suite 4300 Minneapolis, MN 55402 -4108 Attn: Frank J. Hogan, Senior Vice President Section 12.6 Required Approvals. Consents and approvals required by this Indenture to be obtained from the Borrower, the Issuer or the Trustee shall be in writing and shall not be unreasonably withheld or delayed. Section 12.7 Counterparts. This Indenture may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. Section 12.8 Limitation of Liability of Issuer and its Officers, Employees and Agents. No covenant, provision or agreement of the Issuer herein or in the Bonds or in any other document executed by the Issuer in connection with the issuance, sale and delivery of the Bonds, or any obligation herein or 52 therein imposed upon the Issuer or breach thereof, shall give rise to a pecuniary liability of the Issuer or a charge against their general credit or taxing powers or shall obligate the Issuer financially in any way except with respect to this Indenture and the application of revenues therefrom and the proceeds of the Bonds. No failure of the Issuer to comply with any term, condition, covenant or agreement therein shall subject the Issuer to liability for any claim for damages, costs or other financial or pecuniary charges except to the extent that the same can be paid or recovered from this Indenture or revenues therefrom or proceeds of the Bonds. No execution on any claim, demand, cause of action or judgment shall be levied upon or collected from the general credit, general funds or taxing powers of the Issuer. In making the agreements, provisions and covenants set forth herein, the Issuer has not obligated itself except with respect to this Indenture and the application of revenues hereunder as hereinabove provided. The Bonds constitute special obligations of the Issuer, payable solely from the revenues pledged to the payment thereof pursuant to this Indenture, and does not now and shall never constitute an indebtedness or a loan of the credit of the Issuer, or the State of Minnesota or any political subdivision thereof or a charge against general taxing powers within the meaning of any constitutional or statutory provision whatsoever. It is further understood and agreed by the Borrower and the Holders that the Issuer shall not incur any pecuniary liability hereunder nor shall it be liable for any expenses related hereto, all of which the Borrower agrees to pay. If, notwithstanding the provisions of this Section, the Issuer incurs any expense, or suffers any losses, claims or damages or incurs any liabilities, the Borrower will indemnify and hold harmless the Issuer from the same and will reimburse the Issuer for any legal or other expenses incurred by the Issuer in relation thereto, and this covenant to indemnify, hold harmless and reimburse the Issuer shall survive delivery of and payment for the Bonds. The liability of the Issuer is further restricted as provided in the Act. Section 12.9 Amounts Remaining in Funds. Upon expiration or sooner termination of the Loan Agreement as provided therein and after adequate provision has been made to discharge the Bonds in accordance with Article 7 hereof and make all other payments required hereunder and under the Loan Agreement, the Trustee forthwith shall, pay all remaining amounts in the funds established in Article 5 hereof to the Borrower. (The remainder of this page is intentionally left blank.) 53 IN WITNESS WHEREOF, the Issuer has caused this Indenture of Trust to be signed in its name on its behalf by its duly authorized officials, and to evidence its acceptance of the trusts hereby created the Trustee has caused these presents to be signed in its name and behalf by its duly authorized officers, all as of 1 s` day of July, 2014. CITY OF EDINA, MINNESOTA By Its Mayor By Its City Clerk Indenture of Trust by and between the City of Edina, Minnesota and U.S. Bank National Association. S -1 U.S. BANK NATIONAL ASSOCIATION As Trustee By: Its: Vice President Indenture of Trust by and between the City of Edina, Minnesota and U.S. Bank National Association. S -2 No. R -1 EXHIBIT A Form of Bond UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF EDINA, MINNESOTA MULTIFAMILY HOUSING REVENUE BOND (YORKTOWN CONTINENTAL, LP PROJECT) SERIES 2014B Interest Stated Maturity Date of Original CUSIP Rate Issue Number 1, 20_ July _, 2014 REGISTERED HOLDER: CEDE & CO. PRINCIPAL AMOUNT: MILLION THOUSAND AND 00 /100 DOLLARS (1) KNOW ALL PERSONS BY THESE PRESENTS that the City of Edina, Minnesota, in the County of Hennepin and the State of Minnesota (the "Issuer "), for value received, promises to pay to the registered holder named above, or registered assigns, but only from the Bond Fund (as defined in the Indenture described below), and upon presentation and surrender hereof at the principal corporate trust office of the Trustee named below, the principal sum specified above, on the maturity date specified above, or, if this Bond is prepayable as stated below, or a prior date on which it shall have been duly called for redemption, and to pay interest on said principal sum to the Record Date Holder hereof, as defined below, semiannually on 1 and 1 of each year (each, an "Interest Payment Date ") commencing 1, 20_, solely from the Bond Fund, until the principal sum is paid or discharged at the rates per annum specified above on the basis of a 360 -day year. This Bond shall bear interest from the date of original issue set forth above, or in the case of transfer or exchange, from the most recent Interest Payment Date (hereinafter defined) to which interest has been paid or provided for. The "Record Date Holder" is the person in whose name this Bond is registered in the Bond Register maintained by the Trustee named below or its successor in trust (the "Registered Holder" or "Holder" hereof) on the fifteenth day of the calendar month next preceding an Interest Payment Date, whether or not such day is a Business Day. Interest shall be payable by check or draft mailed to the Registered Holder at his or her address as it appears on the Bond Register on the Record Date, except as otherwise provided in the Indenture. The principal of and interest and premium, if any, on this Bond are payable in lawful money of the United States of America. Upon notice to the Trustee accompanied by proper wire instructions, any Holder of Bonds in an aggregate principal amount equal to or greater than $1,000,000 may elect to be paid the interest on such Bonds payable on any Interest Payment Date by Federal Reserve wire transfer in immediately available funds to any bank in the United States specified by such Holder. A -1 Interest not timely paid or duly provided for will be paid by check mailed to the person in whose name this Bond is registered on the Bond Register at the close of business on a date (the "Special Record Date ") fixed by the Trustee, notice of which is to be mailed to all Bondholders. (2) This Bond is one of an issue in the original aggregate principal amount of $ , all of like nominal date of original issue and tenor, except as to number and amount, issued in accordance with an Indenture of Trust, dated as of July 1, 2014 (the "Indenture "), duly executed and delivered by the Issuer to U.S. Bank National Association (the "Trustee "), setting forth the terms upon which the Bonds are issued. The Bonds are equally and ratably secured and entitled to the protection of the Indenture. The Bonds are issued for the purpose of financing the acquisition and renovation of a multifamily rental housing project (the "Project ") within the meaning of Minnesota Statutes, Chapter 462C and 474A, as amended, to be owned by Yorktown Continental, LP, a Minnesota limited partnership (the `Borrower "). The Borrower has agreed under a Loan Agreement dated as of July 1, 2014 (the "Loan Agreement "), between the Issuer and the Borrower to repay all amounts necessary to repay the Bonds, together with interest thereon, in amounts and at times sufficient to pay the principal of, premium, if any, and interest on the Bonds as the same shall become due and payable (the "Basic Payments "). The Borrower, the Issuer and the Trustee have entered into a Regulatory Agreement dated as of July 1, 2014 (the "Regulatory Agreement "), requiring compliance with certain requirements of federal and state law relating to the operation of the Project as a multifamily rental housing project. Pursuant to the Indenture, the Issuer has assigned and pledged to the Trustee, for the equal and ratable benefit of the Holders of the Bonds, the Basic Payments due under the Loan Agreement. Pursuant to a Combination Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Financing Statement dated as of July 1, 2014 (the "Mortgage "), executed by the Borrower in favor of the Issuer and assigned by the Issuer to the Trustee, the Borrower has granted an equal and ratable benefit of the Holders of the Bonds, a second mortgage lien on and a security interest in the Project to secure repayment of the Bonds. [As additional security for the Bonds, the Borrower has delivered an Assignment of Capital Contributions, from the Borrower to the Trustee, acknowledged by the Investor Limited Partner, an Assignment of Partnership Interest, from the Borrower and (the "General Partner ") to the Trustee, whereby the General Partner and the Borrower assign to the Trustee the General Partner's interest in the Borrower and the Borrower's interest in the capital contributions of the General Partner, an Assignment of HOME Loan Proceeds, between the Borrower and the Trustee and a Guaranty Agreement from (all dated as of 1, 20_) (collectively, the "Security Documents "). Proceeds of the Bonds will be disbursed to or for the benefit of the Borrower pursuant to the Disbursing Agreement, dated as of July 1, 2014 (the "Disbursing Agreement "), among the Borrower, the Trustee and [Commercial Partners Title, LLC.] (3) Reference is hereby made to the Loan Agreement, the Regulatory Agreement, the Mortgage, the Disbursing Agreement, the Security Documents and the Indenture, including all indentures supplemental thereto, for a description of the property encumbered and assigned, the provisions, among others, with respect to the nature and extent of the security, the rights of the Issuer, and the rights, duties and obligations of the Borrower, the Trustee and the Holders of the Bonds and the terms upon which the Bonds are issued and secured. (4) The term "Business Day" shall mean any day on which the Trustee or the Federal Reserve Bank of New York are not authorized by law to close. If the date for making any payment or the last date for performance of any act or the exercising of any right, as provided in this Bond, is not a Business Day, such payment may be made or act performed or right exercised on the next succeeding Business Day. follows: (5) The Bonds are subject to redemption prior to maturity as provided in the Indenture as A -2 (a) Optional Prepayment. The Bonds are subject to redemption and prepayment upon request by the Borrower to the Trustee on any Business Day, in whole or in part, and if in part, in inverse order of maturity date, in principal increments of $5,000, so long as no Bond is Outstanding in an amount less than $100,000, and by lot within a maturity, at a Redemption Price equal to the principal amount of the Bonds to be redeemed, plus accrued interest thereon. (b) Mandatory Redemption from Moneys Remaining in Fund. The Bonds are subject to mandatory redemption in part, at a redemption price equal to the principal amount thereof, without premium, plus accrued interest thereon to the date fixed for redemption, on the earliest practicable date for which notice can be given pursuant to the Indenture, to the extent of moneys remaining on deposit in the Project Fund that are transferred to the Bond Fund upon completion of the Project and payment of all Costs of the Project as provided in Indenture. (c) Mandatory Redemption from Certain Moneys. The Bonds are subject to mandatory redemption in part, at a redemption price equal to the principal amount thereof, without premium, plus accrued interest thereon to the date fixed for redemption, on the earliest practicable date for which notice can be given pursuant to the Indenture, [from the Assigned Capital Contributions, the GP Capital Contributions, the HOME Loan Proceeds and the Sponsor Loan Proceeds] described in the Indenture, redemption of the Bonds in part to occur upon each receipt by the Borrower or its designee and deposit with the Trustee in accordance with the Loan Agreement. (d) No Redemption Prior to Placed in Service Date. Notwithstanding anything to the contrary contained herein, the Bonds shall not be redeemed prior to the date upon which the Project has been placed in service for purposes of Section 42 of the Code. (6) In the case of any partial redemption of the Bonds of the same maturity, the particular Bonds to be redeemed shall be selected by the Trustee in such manner as the Trustee shall deem fair and equitable and the Bonds shall be redeemed in the principal amounts specified in the Indenture. Any Bond which is to be redeemed only in part shall be surrendered to the Trustee (i) for payment of the Redemption Price (including accrued interest thereon to the Redemption Date) of the portion thereof called for redemption and (ii) for exchange for Bonds in any authorized denomination or denominations in aggregate principal amount equal to the unredeemed portion of such Bond. (7) Notice of the intended redemption of Bonds shall be given by first class mail, to the registered owner of each Bond to be redeemed, at the address of such owner shown on the Bond Register. Notice by publication shall not be required. All such redemption notices shall be given not less than 15 days nor more than 60 days prior to the date fixed for redemption. Each notice with respect to a partial redemption of Bonds shall specify the numbers of the Bonds being called, the redemption date, and the place or places where amounts due upon such redemption will be payable. Such notice shall further state that payment of the applicable redemption price plus accrued interest (if not previously paid) to the date fixed for redemption will be made upon presentation and surrender of the Bonds. Failure to give notice by mailing to the registered owners of any Bonds designated for redemption or any defect in such notice shall not affect the validity of the proceedings for the redemption of such Bonds. With respect to optional redemptions, such notice may be conditioned upon moneys being on deposit with the Trustee on or prior to the redemption date in an amount sufficient to pay the redemption price on the redemption date. If such notice is conditional and either the Trustee receives written notice from the Borrower that moneys sufficient to pay the redemption price will not be on deposit on the redemption date, or such moneys are not received on or prior to the redemption date, then A -3 such notice shall be of no force and effect, the Trustee shall not redeem such Bonds and the Trustee shall give notice, in the same manner in which the notice of redemption was given, that such moneys were not or will not be so received and that such Bonds will not be redeemed. Notice of redemption having been given in the manner provided above, and money sufficient for the redemption being held by the Trustee for that purpose, thereupon the Bonds so called for redemption shall become due and payable on the redemption date, and interest thereon shall cease to accrue; and the owners of the Bonds so called for redemption shall thereafter no longer have any security or benefit under the Indenture except to receive payment of the redemption price for such Bonds. (8) In addition to the foregoing, if under certain circumstances an Event of Default, as defined in the Indenture, shall occur, the principal of all the Bonds and all interest accrued thereon may, without prior notice to the Bondholders, be declared due and payable in the manner and with the effect provided in the Loan Agreement and Indenture. (9) This Bond and the series of which it forms a part are issued pursuant to and in full compliance with the Constitution and laws of the State, particularly Minnesota Statutes, Chapters 462C and 474A, and pursuant to a resolution adopted and approved by the governing body of the Issuer on July 2014], which resolution authorized the financing of the Project and the execution and delivery of the Indenture, and the issuance of the Bonds as special, limited obligations payable solely from revenues derived from the Loan Agreement, the Security Documents and the Mortgage except that under certain circumstances the Bonds may be payable from Bond proceeds. The loan repayments under the Loan Agreement are scheduled to be sufficient to pay the principal of, premium, if any, and interest on the Bonds as the same become due and payable and are to be paid to the Trustee for the account of the Issuer and credited to the Bond Fund as a special trust fund account created by the Issuer and have been and are hereby pledged for that purpose. (10) The Bonds, including principal, premium and any other payments however designated, and the interest due thereon do not and shall never constitute a general indebtedness of the Issuer within the meaning of any state constitutional or statutory provision and do not and shall not constitute or give rise to a pecuniary liability or moral obligation of the Issuer, the State or any of its political subdivisions, or a charge against its general credit or taxing powers, or to the extent permitted by law, any pecuniary liability of any officer, employee or agent of the Issuer. The provisions of this paragraph are controlling notwithstanding anything herein to the contrary. (11) The Registered Holder of this Bond shall have no right to enforce the provisions of the Indenture or to institute action to enforce the covenants therein, or to take any action with respect to any Event of Default under the Indenture, or to institute, appear in or defend any suit or other proceedings with respect thereto, except as provided in the Indenture. Modifications or alterations of the Indenture, or of any indenture supplemental thereto, may be made only to the extent and in the circumstances permitted by the Indenture. (12) With the consent of the Issuer, the Borrower and the Trustee, as appropriate, and to the extent permitted by and as provided in the Indenture, the terms and provisions of the Indenture, the Loan Agreement, or of any instrument supplemental thereto relating to the Bonds, may be modified or altered by the consent of the Registered Holders of at least 51% in aggregate principal amount of the Bonds then Outstanding thereunder. (13) The Indenture also contains provisions permitting Holders of a majority in aggregate principal amount of the Bonds at the time Outstanding, on behalf of all the Holders of all the Bonds, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under A -4 the Indenture and their consequences. Any such consent or waiver by the Registered Holder of this Bond shall be conclusive and binding upon such Registered Holder and on all future Registered Holders of this Bond and of any Bond issued in lieu hereof whether or not notation of such consent or waiver is made upon this Bond. (14) The Bonds are issued as fully registered Bonds without coupons in the Authorized Denominations. No single Beneficial Owner of Bonds is authorized to own a Bond in an amount less than an Authorized Denomination. The Bonds are interchangeable for one or more Bonds in Authorized Denominations and of the same series, aggregate principal amount, interest rate and maturity date, upon surrender thereof by the Holder at the principal office of the Trustee, in the manner and subject to the limitations provided in the Indenture. The Issuer, the Trustee and any additional paying agents may deem and treat the Registered Holder hereof as the absolute owner hereof (whether or not this Bond shall be overdue) for the purpose of receiving payment of or on account of principal hereof and interest (except as otherwise hereinabove provided with respect to the Record Date) due hereon and for all other purposes, and the Issuer, the Trustee and any additional paying agents shall not be affected by any notice to the contrary. (15) Subject to the limitations provided in the Indenture, this Bond is only transferable by the Registered Holder hereof upon surrender of this Bond for transfer at the principal corporate trust office of the Trustee, duly endorsed or accompanied by a written instrument or instruments of transfer in the form printed on this Bond or in another form satisfactory to the Trustee and executed and with guaranty of signature by the Registered Holder hereof or his attorney duly authorized in writing, containing written instructions as to the details of the transfer of the Bond. Thereupon the Issuer shall execute (if necessary) and the Trustee shall authenticate and deliver, in exchange for this Bond, one or more new Bonds in the name of the transferee (but not registered in blank or to "bearer" or a similar designation), of an authorized denomination, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity, and bearing interest at the same rate. (16) No service charge shall be made to the Registered Holder for any registration, transfer or exchange hereinbefore referred to, but the Trustee may require payment of a sum sufficient to cover any tax, fee or other governmental charge that may be imposed in connection with any transfer or exchange of Bonds, other than exchanges expressly provided in the Indenture to be made without charge to Bondholders. (17) IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts, conditions and things required to exist, to happen and to be performed precedent to and in the execution and delivery of the Indenture and the issuance of this Bond do exist, have happened and have been performed in due time, form and manner, as required by law, and that the issuance of this Bond and the series of which it forms a part, together with all other obligations of the Issuer, does not exceed or violate any constitutional or statutory limitation. (18) This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Indenture unless the Certificate of Authentication hereon shall have been executed by the Trustee. A -5 IN WITNESS WHEREOF, the City of Edina, Minnesota, by its governing body, has caused this Bond to be executed in its name by the facsimile signatures of its duly authorized officials and by the manual signature of a Responsible Agent of the Trustee acting as authenticating agent. CITY OF EDINA, MINNESOTA By Its Mayor By Its City Clerk UP TRUSTEE'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within mentioned Indenture and is one of the Multifamily Housing Revenue Bonds (Yorktown Continental, LP Project) Series 2014B of the City of Edina, Minnesota. Date of Authentication: July _, 2014 U.S. BANK NATIONAL ASSOCIATION, Trustee By Responsible Agent A -7 ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed: Signature(s) must be guaranteed by a member of a Medallion Signature Program. The Trustee will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: Insert social security or other identifying number of Transferee (Include information for all joint owners if the Bond is held by joint account) A -8 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full: TEN COM - as tenants in common TEN ENT - as tenants by entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - as custodian for under the (cust) (minor) Uniform Transfers to Minors Act. (state) Additional abbreviations may also be used though not in the above list. A -9 To: Mayor and City Council From: Ann Kattreh Parks & Recreation Director Date: July 1, 2014 w9�,1� 0 e : =i 0 v �y • ���oortro���9 • lase Agenda Item #: VII.B. The Recommended Bid is ❑ Within Budget 0 Not Within Budget Subject: Request for Purchase - Award of Bid — Contract #I 3-7PK, Pamela Park Shelter Building Date Bid Opened or Quote Received: Bid or Expiration Date: June 24, 2014 August 24, 2014 Company: Amount of Quote or Bid: Multiple Vendors In Multiple Bid and Quote Categories $622,363 - $804,638Total Quotes Recommended Quote or Bid: Please see Attachment C. General Information: Please see the attached Recommendations for Award of Contract Letters from RJM Construction regarding the details of the Pamela Park shelter building quotes. RJM Construction prepared two recommendation letters for this project. Attachment D is for the base bid gable roof design shelter building. Attachment D provides the details for the addition of project alternates including a shed roof, parking lot work and a fireplace. The Pamela Park shelter building quote packages include all materials and construction of the Pamela Park shelter building. This completes the bidding process for the Pamela Park renovation project. The Pamela Park shelter building has two design options. The base bid option will cost $622,363 and has a gable roof design. The shed roof design (Bid Alternate AI Building — Shed Roof Change) adds $75,739 to the base bid for a total building cost of $698,102. The renderings for both versions of the Pamela Park shelter are attached (Attachment F). The gable roof version (base bid) includes LED lights, a high - efficiency HVAC system, full sprinkler system and commercial - grade fixtures and finishes selected for ease of maintenance and durability. Large windows at the Great Room allow an abundance of natural light into the space as well as views out. Solatube daylighting devices were included in the bathrooms, mechanical room and storage area to provide daylight to these spaces without windows in order to minimize the usage of lights. Recladding and reroofing of the well portion of the building increases the insulation value of the existing space and ties it in visually with the new portion of the building. City of Edina • 4801 W. 501h St. • Edina, MN 55424 REQUEST FOR PURCHASE IN EXCESS OF $20,000 /CHANGE ORDER Page 2 The shed roof version of the park shelter includes all items listed above. In addition, even more daylight will enter the Great Room with the added clerestory windows, significantly reducing the hours the lights will need to be utilized. The Structural Insulated Panels (SIPS) that form the shed roof offer a greater insulation value than that of the gable roof. The shed roof also eliminates the attic space created by the base bid gable roof and thus simplifies the sprinkler system (base bid requires sprinkler both at the ceiling level and within the enclosed attic space.) The Council has three alternates for consideration. Bid Alternate #1 is to reclaim and resurface the entire west parking lot - $77,088. Bid Alternate #2 is for a shed roof for the building - $75,739. Bid Alternate #3 is for the fireplace - $29,448. Attachment E, page 2 shows the cost of the base bid plus alternates. Alternate Scenario Description Alternate #I adds the west parking lot to the gable roof design. Project Budget: $3,293,587 Alternate #2 adds the shed roof. Project Budget: $3,290,322 Alternate #3 adds the fireplace to the gable roof design. Project Budget: $3,245,662 Alternate #4 adds the west parking lot and shed roof. Project Budget: $3,367,409 Alternate #5 adds the west parking lot and fireplace to the gable roof design. Project Budget: $3,322,709 Alternate #6 adds the west parking lot, shed roof and fireplace. Project Budget: $3,396,532 Alternate #7 adds the shed roof and fireplace. Project Budget: $3,319,444 The project budget approved by the City Council for the Pamela Park renovation was $3,377,000. Alternate #6 is over budget and is not recommended. Staff requests that the City Council decides which roof design is preferred for the building and if a fireplace should be added. The fireplace was requested by the neighborhood working group. No other shelter buildings have fireplaces. The cost to operate the fireplace is minimal. The fireplace would be cool to the touch. The gas cost would be approximately $150 for 5 months. The parking lot in the west parking lot is in poor condition. The Pamela Project budget includes a $1 17,987 contingency. This agenda item is marked "not within budget" because it will be paid for by a bond issue and not by funds from the City Council approved City of Edina budget. Attachments: A. RJM Letter B. Alternates C. Construction Costs D. Recommendation Letter for Base Bid Award Only E. Recommendation Letter for Base Bid Plus Project Alternates F. Renderings City of Edina 4801 W. 50th St. Edina, MN 55424 Attachment A t!1' MINNEAPOLIS / PHOENIX / DENVER CONSTRUCTION May 28, 2014 Ann Kattreh City of Edina Parks and Recreation 4801 West 50th Street Edina, MN 55424 RE: Pamela Park — Bid Package #1 and #2 Letters Recommendations for Award of Contract Dear Ann, Attached you will find two letters of recommendation for the Pamela Park Bid Package #1 and #2. The first letter, marked as BASE BID, provides the contractor recommendations should the projects base bid, no alternates, be accepted. The second letter, marked as PROJECT ALTERNATES, provides the contractor recommendations should certain or all project alternates are selected. Along with this information is our estimate summary outlining bid packages for the complete project. If you should have any questions, please feel free to contact me. Sincerely, Paul Kolias Project Executive cc: Brian Recker, RJM Construction Doug Hawkinson, RJM Construction CONSTRUCTION ESTIMATE DATE: June 24, 2014 PROJECT: Pamela Park - Bid Package #1. & #2 ARCHITECT: Wendel DRAWING DATE: April 1, 2014 ALTERNATES: Attachment B ALTERNATES Bid Package #1: $1,608,398 Bid Package #2: $622,363 Fee's, Insurance, General Conditions and Owner Costs: $985,738 Total Base Estimate: $3,216,499 Alt 41 Site West Parking Lot - Reclaim and New Pavement Alt #1 Bldg Shed Roof Change Alt #2 Bldg Fireplace TOTAL PAGE 1 OF 1 VALUE Y N M - M] $ 77, 08" $ 73, 823 $29,123 $3,216,499 Attachment C ESTIMATE DATE: June 24, 2014 Ct3NSTRdlCTI0 PROJECT: Pamela Park - Bid Package #1 & #2 ARCHITECT: Wendel DRAWING DATE: April 1, 2014 DESCRIPTION Sub Contractors Base Estimate 111A onstruction Costs id Package #1 and 11B - Athletic Field Equipment Upper Midwest Athletic $50,045 11B - Sports Netting Action Fence $48,320 31A - Earthwork Rachel $974,880 32A - Asphalt Bituminous Roadways Inc $210,770 32B - Retaining Walls Urban Companies $126,000 32C - Landscaping and Irrigation Greenscape Companies $119,800 32D - Exterior Concrete Work 32E - Chain Link Fence Stapf Concrete Action Fence . $67,103 $11,480 Bid Package #2 1A- Final Cleaning RJM Allowance $2,955 3A - Concrete and Masonry Donald R. Frantz $78,650 5A- Metal Fab National Steel $3,210 6A - Rough Carpentry - Labor Braxton $78,510 613 - Rough Carpentry - Material Scherer Bros $43,460 6C - Structural Insul. Panels (Alt) Extreme Panels $0 6D - Finish Carpentry - Labor Tekton $31,645 6E - Finish Carpentry - Material Southern MN Woodcraft $21,096 7A - Asphalt Shingles & Flashings RJM Allowance $36,065 7B - Thermal Insulation Expert Insulation $9,987 8A - Doors, Frames and Hardware - Material Commercial Door $15,260 813 -Aluminum Framed Entrances /Glazing 8C - Tubular Skylights Inglas Solar Midwest $21,580 $3,120 9A - Gypsum Board Systems & FRP Quality $19,175 913 - Tiling Division 9 Tile $9,760 9C - Carpeting Mars $9,725 9D - Painting Gustafson Decorating $9,795 10A - Fire Places (Alt) Fireside Hearth & Home $0 21A - Fire Protection Frontier $33,650 22A - Plumbing API $47,800 23B - HVAC Centraire $59,500 26A - Electrical Muska Electric $87,320 General Conditions RJM Construction $94,800 General Liability Insurance Builders Risk Insurance Building Permit Bond RJM Construction RJM Construction $25,636 $3,534 $0 Subtotal Construction Costs Contingency _ $117,987 Contractors Fee RJM Construction $70,615 Total Project Estimate I I $2,548,333 1 Li CONSTRUCTION BASE BID June 24, 2014 Ann Kattreh City of Edina Parks and Recreation 4801 West 50th Street Edina, MN 55424 RE: Pamela Park — Bid Package #2 Recommendations for Award of Contract — BASE BID Dear Ann, Attachment D MINNEAPOLIS / PHOENIX / DENVER On June 17, 2014 bids were received by RJM Construction for Pamela Park — Bid Package #2. A total of 56 bids were received for twenty two (22) bid categories. Attached is a bid summary by trade for each quote category. Bid Package #2 includes complete construction of the new park shelter building, utility hook ups, and surrounding site concrete. Note all quote categories for Bid Package #2 were less than the $100,000 threshold requiring a public bid notice thus no public bid notice was required for Bid Package #2. All the site earthwork, site utilities, retaining walls, site concrete, asphalt, fencing, selective building demolition, footing/foundation excavation and athletic equipment have been bid and awarded under Bid Package #1, received May 21, 2014. Unique features included in Bid Package 2 which provide added energy efficiency are: HVAC equipment: two stage compressor; high efficiency furnance; energy recovery unit with a value of $17,119.00. LED light fixtures through -out the building interior and exterior with a value of $21,470.00. One other unique feature to this project which adds to it cost is the work required to keep the existing well house functioning while the new shelter building is being constructed, which include new storage room, selective building demolition, temporary exterior enclosure, new exterior building finishes, new tie -in along with new asphalt shingle roof the value of these items is $39,570.00. Again these values are part of the Park Shelter Building construction budget listed below. RJM has completed its review of the quotes for Bid Package #2 and in addition to the bid review; we have also conducted a scope review with the apparent low bidder for each quote category. Based on the Bid Package #2 results we recommend to the City Council to approve the packages as follows: Bid Package #1 (approved June 3, 2014) Site Construction construction budget is $2,594,136 Bid Package #2 Park Shelter Building construction budget of $622,363 (base bid) Total Project Budget of $3,216,499. E During the bidding process, three bid alternates were received for consideration by the City Staff. Of these bid alternates, it has been recommended that none of three additive alternates be accepted. The bid values of these alternates Al site, Al bldg and A2 bldg are outlined below. Note the bid alternates are not included in contract award amounts listed below or above in the total project budget. Bid Alternate Al site — Reclaim West Parking Lot ADD $77,088 Bid Alternate Al bldg —Shed Roof Change ADD $75,739 Bid Alternate A2 bldg— Fire Place ADD $29,448 We recommend to the City Council that they award the contracts as follows: QUOTE CATEGORY AWARD AMOUNT lA — Final Cleaning RJM Allowance $2,955.00 3A— Concrete and Masonry Donald R. Frantz $78,650.00 595 Randolph Ave St. Paul, MN 55102 5A — Metal Fabrications National Steel Fabricators, Inc. $3,210.00 4779 Mustang Circle Mounds View, MN 55112 6A — Rough Carpentry and Specialties Braxton and Sons, Inc. $78,510.00 90013 1't Street West St. Louis Park, MN 55426 613 — Rough Cparpentry and Specialties Scherer Bros. Lumber Co. $43,460.00 3253 East 4th Ave Shakopee, Mn 55379 6D — Finish Carpentry Specialties Texton Construction Company $31,645.00 5755 Wayzata Blvd St. Louis Park, MN 55416 6E — Finish Carpentry Specialties Southern Minnesota Woodcraft, Inc. $21,096.00 1051 Faribault Road Faribault, MN 55021 7A— Asphalt Shingles &. Flashings RJM Allowance $36,065.00 7B —Thermal Insulation Expert Insulation $9,987.00 6894 10th Ave SW Rocherster, MN 55902 8A— Doors, Frames, and Hardware Commercial Door Systems, Inc. $15,260.00 7670 Commerce Street, PO Box277 Corcoran, MN 55340 8B— Aluminum- Frames Entrances /Glazing Inglas LLP $21,680.00 1418 Carroll Avenue St. Paul, MN 55104 8C— Tubular Skylights Solar Midwest, Inc. $3,120.00 5001 Drew Ave North Brooklyn Center, MN 55429 9A — Gypsum Board Skystems & FRP Qualtiy Drywall Inc. $19,175.00 8620 Monticello Lane, Suite 100 Maple Grove, MN 55369 9B — Tiling Division 9 Tile, Inc. $9,760.00 845 HWY 169 North Plymouth, MN 55441 9C — Carpeting Mars Carpet Sale $9,725.00 9201 Penn Ave South, Suite 28 Bloomington, MN 55431 9 D — Painting Gustafson Decorating Services, Inc. $9,795.00 20600 Rush Meadow Lane Corcoran, MN 55374 21A — Fire Protection Frontier Fire Protection, Inc. $33,650.00 75 County Road B East Little Canada, MN 55117 22A — Plumbing API Companies $47,800.00 307 Jackson Ave, Suite #4 Elk River, MN 55330 23A — HVAC Centraire Heating & Air Conditioning, Inc. $59,500.00 7402 Washington Ave Eden Prairie, MN 55344 26A — Electrical Muska Electric $87,320.00 1985 Oakcrest Ave Roseville, MN 55113 If you should have any questions, please feel free to contact me. cerel , Paul Kolias Project Executive cc: Brian Recker, RJM Construction Doug Hawkinson, RJM Construction PROJECT ALTERNATES June 24, 2014 Ann Kattreh City of Edina Parks and Recreation 4801 West 50th Street Edina, MN 55424 RE: Pamela Park— Bid Package #2 Attachment E MINNEAPOLIS / PHOENIX / DENVER Recommendations for Award of Contract — PROJECT ALTERNATES Dear Ann, On June 17, 2014 bids were received by RJM Construction for Pamela Park — Bid Package #2. A total of (56) bids were received for twenty two (22) bid categories. Attached is a bid summary by trade for each quote category. Bid Package #2 includes complete construction of the new park shelter building, utility hook ups, and surrounding site concrete. Note all quote categories for Bid Package #2 were less than the $100,000 threshold requiring a public bid notice thus no public bid notice was required for Bid Package #2. All the site earthwork, site utilities, retaining walls, site concrete, asphalt, fencing, selective building demolition, footing /foundation excavation and athletic equipment have been bid and awarded under Bid Package #1, received May 21, 2014. Unique features included in Bid Package 2 which provide added energy efficiency are: HVAC equipment: two stage compressor; high efficiency furnance; energy recovery unit with a value of $17,119.00. LED light fixtures through -out the building interior and exterior with a value of $21,470.00. One other unique feature to this project which adds to it cost is the work required to keep the existing well house functioning while the new shelter building is being constructed, which includes new storage room, selective building demolition, temporary exterior enclosure, new exterior building finishes, new tie -in along with new asphalt shingle roof the value of these items is $39,570.00. Again these values are part of the Park Shelter Building construction budget listed below. RJM has completed its review of the quotes for Bid Package #2 and in addition to the bid review; we have also conducted a scope review with the apparent low bidder for each quote category. Based on the Bid Package #2 results we recommend to the City Council to approve the packages as follows: Bid Package #1 (approved June 3, 2014) Site Construction construction budget is $2,594,136 Bid Package #2 Park Shelter Building construction budget of $622,363 Total Project Budget of $3,216,499 (BASE BID) III During the bidding process, three bid alternates were received for consideration by the City Staff. The bid values of these alternates Al site, Al bldg and A2 bldg are outlined below: Bid Alternate Al site — Reclaim West Parking Lot ADD $77,088 Bid Alternate Al bldg — Shed Roof Change ADD $75,739 Bid Alternate A2 bldg — Fire Place ADD $29,448 The following alternate scenarios have been put together for evaluation by the Mayor, City Council and City Staff: #1 ALTERNATE Al SITE ONLY TOTAL PROJECT BUDGET: $3,293,587 #2 ALTERNATE Al BLDG ONLY TOTAL PROJECT BUDGET: $3,290,322 #3 ALTERNATE A2 BLDG ONLY TOTAL PROJECT BUDGET: $3,245,662 #4 ALTERNATE Al SITE & Al BLDG TOTAL PROJECT BUDGET: $3,367,409 #5 ALTERNATE Al SITE & A2 BLDG TOTAL PROJECT BUDEGT: $3,322,709 #6 ALTERNATE Al SITE, Al BLDG & A2 BLDG TOTAL PROJECT BUDGET: $3,396,532 #7 ALTERNATE Al BLDG & A2 BLDG TOTAL PROJECT BUDGET: $3,319,444 We recommend to the City Council that they award the contracts as follows: BID CATEGORY 31A — Earthwork Rachel Contracting, Inc. 4125 Napier Court NE St Michael, MN 55376 32A—Asphalt Bituminous Roadways 1520 Commerce Drive Mendota Heights, MN 55110 AWARD AMOUNT $974,880.00 Base bid $979,380.00 if awarded alternate scenarios 1,4,5,6 $210,770.00 Base bid $276,770.00 if awarded alternate scenarios 1,4,5,6 C QUOTE CATEGORY AWARD AMOUNT 1A — Final Cleaning RJM Allowance $2,955.00 3A —Concrete and Masonry Donald R. Frantz $78,650.00 595 Randolph Ave Base bid St. Paul, MN 55102 $79,400 If awarded alternate scenarios 5A— Metal Fabrications 2,4,6,7 National Steel Fabricators, Inc. $3,210.00 4779 Mustang Circle $33,889.00 Mounds View, MN 55112 If awarded alternate scenarios 6A— Rough Carpentry and Specialties Braxton and Sons, Inc. $78,510.00 900131" Street West Base bid St. Louis Park, MN 55426 $95,410.00 If awarded alternate scenarios 2,4 $79,010.00 If awarded alternate scenarios 3,5 $95,910.00 If awarded alternate scenarios 6,7 613 — Rough Cparpentry and Specialties Scherer Bros. Lumber Co. $43,460.00 3253 East 4th Ave Base bid Shakopee, Mn 55379 $42,053.00 If awarded alternate scenarios 2,4, 6, 7 6C— Structural Insulated Panels Extreme Panels $33,889.00 475 East 4th Street North If awarded alternate scenarios Cottonwood, MN 56229 2,4,6,7 J 6D — Finish Carpentry Specialties Texton Construction Company $31,645.00 5755 Wayzata Blvd Base bid 5t. Louis Park, MN 55416 $34,079.00 if awarded alternate scenarios 3,5,6,7 6E —Finish Carpentry Specialties $9,987.00 Southern Minnesota Woodcraft, Inc. $21,096.00 1051 Faribault Road Base bid Faribault, MN 55021 $23,121.00 8A — Doors, Frames, and Hardware Ifawarded alternate scenarios Commercial Door Systems, Inc. 2,4 7670 Commerce Street, PO Box277 $29,471.00 Corcoran, MN 55340 if awarded alternate scenarios 3,5 $31,469.00 if awarded alternate scenarios 6,7 7A — Asphalt Shingles & Flashings RJM Allowance $36,065.00 Base bid $39,028.00 If awarded alternate scenarios 2,4,6,7 7B —Thermal Insulation Expert Insulation $9,987.00 689410th Ave SW Base bid Rocherster, MN 55902 $9,000.00 If awarded alternate scenarios 8A — Doors, Frames, and Hardware 2,4, 6, 7 Commercial Door Systems, Inc. $15,260.00 7670 Commerce Street, PO Box277 Corcoran, MN 55340 8B — Aluminum- Frames Entrances /Glazing Inglas LLP $21,680.00 1418 Carroll Avenue Base bid St. Paul, MN 55104 $24,640.00 If awarded alternate scenarios 2,4, 6, 7 8C— Tubular Skylights Solar Midwest, Inc. $3,120.00 5001 Drew Ave North Brooklyn Center, MN 55429 9A — Gypsum Board Systems & FRP Qualtiy Drywall Inc. $19,175.00 8620 Monticello Lane, Suite 100 Base bid Maple Grove, MN 55369 $26,825.00 Ifawarded alternate scenarios 2,4 $19,325.00 If awarded alternate scenarios 3,5 $26,975.00 If awarded alternate scenarios 9B — Tiling 6,7 Division 9 Tile, Inc. $9,760.00 845 HWY 169 North Plymouth, MN 55441 9C — Carpeting Mars Carpet Sale $9,725.00 9201 Penn Ave South, Suite 28 Bloomington, MN 55431 9D — Painting Gustafson Decorating Services, Inc. $9,795.00 20600 Rush Meadow Lane 10A — Fire Place Fireside Hearth & Home $10,000.00 2700 N Fairview Avenue If awarded alternate scenarios Roseville, MN 55113 5,3,6,7 22A — Plumbing API Companies 307 Jackson Ave, Suite #4 Elk River, MN 55330 23A — HVAC Centraire Heating & Air Conditioning, Inc. 7402 Washington Ave Eden Prairie, MN 55344 26A — Electrical Muska Electric 1985 Cakcrest Ave Roseville, MN 55113 If you should have any questions, please feel free to contact me. ereiy, Paul Kolias Project Executive cc: Brian Recker, RJM Construction Doug Hawkinson, RJM Construction $47,800.00 Base bid $48,775.00 If awarded alternate scenarios 3,5,6,7 $59,500.00 Base bid $61,870.00 If awarded alternate scenarios 2,4 $63,450.00 Ifawarded alternate scenarios 3,5 $65,820.00 If awarded alternate scenarios 6,7 $87,320.00 Base bid $87,720.00 If awarded alternate scenarios 2,5 $87,570.00 If awarded alternate scenarios 3,5 $87,970.00 If awarded alternate scenarios 6,7 Exterior — Gable Roof Interior— Gable Roof with fireplace Gable Roof — No Fireplace Shed Roof Shed Roof - Interior with fireplace Shed Roof Interior— No Fireplace To: MAYOR & COUNCIL From: Debra Mangen City Clerk Date: July I, 2014 w91Ni�'1r� 0 o • ,,��1HPOliA��, • 1868 Agenda Item #: VII. C. Subject: Resolution No. 2014 -76 Accepting Various Grants & Donations Action Requested: Adopt Resolution. Information / Background: Action M Discussion ❑ Information ❑ In order to comply with State Statutes, all donations to the City must be adopted by a resolution approved by four favorable votes of the Council accepting the donation. I have prepared the attached resolution detailing the various donors, their gifts and the departments receiving donations for your consideration. Attachments: Resolution No. 2014 -76 City of Edina • 4801 W. 50th St. • Edina, MN 55424 RESOLUTION NO. 2014 -76 ACCEPTING DONATIONS ON BEHALF OF THE CITY OF EDINA WHEREAS, Minnesota Statute 465.03 allows cities to accept grants and donations of real or personal property for the benefit of its citizens; WHEREAS, said donations must be accepted via a resolution of the Council adopted by a two thirds majority of its members. NOW, THEREFORE, BE IT RESOLVED, that the Edina City Council accepts with sincere appreciation the following listed grants and donations on behalf of its citizens. Edina Art Center: Susan Prosher Norma Christopher Jody Winger Ken Johnson, Eden Avenue Bar & Grill Grandview Tire & Auto, Rick Murphy Dated: July 1, 2014 Box of Acrylic Paint & Sculpture Book Drawing Pad, Paper, Colored Pencils 15 Ceramic Books Gift Card Eden Avenue Grill For $20.00 Three Oil Change Gift Cards Attest: Debra A. Mangen, City Clerk James B. Hovland, Mayor STATE OF MINNESOTA) COUNTY OF HENNEPIN) SS CITY OF EDINA ) CERTIFICATE OF CITY CLERK I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina City Council at its Regular Meeting of July 1, 2014, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this day of City Clerk To: MAYOR & COUNCIL From: Debra Mangen City Clerk Date: July I, 2014 Subject: Correspondence Action Requested: No action is necessary. Agenda Item #: VIII. A. Action x❑ Discussion ❑ Information ❑ Attachment: Attached is correspondence received since the last Council meeting. City of Edina • 4801 W. 50th St. • Edina, MN 55424 ,l'� o Hennepin County Public Works Transportation Department Public Works Facility 1600 Prairie Drive Medina, MN 55340 -5421 June 17, 2014 Dear Resident: Phone: 612 - 596 -0300 Web: www.co.hennepin.mn.us During neighborhood meetings on April 23 and 28, neighbors along the 5400 through 6100 blocks of Xerxes Avenue met to discuss the desirability of installing bumpouts along Xerxes Avenue between 54th Street and the Crosstown Highway as part of the county's 2014 resurfacing project. During the meeting, which was attended by staff from both Edina and Minneapolis, the general opinion was that bumpout installation was desirable. In response to the general support of the concept, both cities have expressed their support for the installations. Accordingly, county staff will now contact neighbors where bumpout installation appears feasible. All are advised both cities prefer the bumpouts be placed at the corners. Thus, the county will investigate the feasibility of such placements. Neighbors are advised county staff will begin contacting those where bumpouts may be placed beginning the week of June 23`a During one of the neighborhood meetings, some Edina residents expressed displeasure with the configuration of the Xerxes Avenue /Crosstown Highway interchange. Both cities considered the configuration and continue to support the layout. Thus, county staff has engaged Minnesota Department of Transportation staff to make improvements to the interchange area as part of the Xerxes Avenue bridge redecking project. While it is anticipated the Crosstown Highway interchange will reopen in July, it is anticipated the overlay/bumpout may not begin until September. Questions regarding the bumpout installations may be directed to my office. Sincerely; James N. Grube, P.E. Director of Transportation and County Engineer cc: Council Member Linea Palmisano, Minneapolis Council Mayor James Hovland, Edina Jan Callison, Hennepin County Commissioner, 6a' District Marion Greene, Hennepin County Commissioner, 3 d District Mark K. Nolan, Edina Jon Wertjes, Minneapolis Debra Brisk, Hennepin County Christopher Sagsveen, Hennepin County Jason Staebell, Hennepin County An Equal Opportunity Employer Heather Branigin From: Dan Mueller <dan.mueller04 @gmail.com> Sent: Friday, June 20, 2014 1:20 PM To: Edina Mail Subject: Future Use of Fred Richards Golf Course Mayor James Hovland, Since I was unable to attend the last council meeting where ideas were presented for the future use of the Fred Richards Golf course, I am writing you to give some of my thoughts. I have just recently heard about the plan to turn the property over to We Can Ride MN for therapeutic horse riding and other events. I strongly urge the council to oppose this plan. This proposal would have very limited . use for Edina citizens and only hopes to bring potential few visitors to Edina businesses. I do not want my property tax dollars supporting this plan. If the council thinks this is a good use for the golf course, they should sell the land to a non -profit and use the revenue to lower our property taxes. I support a plan that would provide multiple outdoor activities for mainly Edina residents of ALL ages, and other visitors from surrounding communities. This would be a great opportunity to have a park that would have activities like: mountain biking, snow shoeing, cross country skiing, fitness /obstacle course, another Frisbee golf course, and maybe archery. I would also support a modest fee structure to create and support the infrastructure for these activities. The Three Rivers Park District has some great examples of how to get maximum use out of it's parks for all ages. We could do the same with this property and have it at place that is close to it's citizens. We don't need another park with kid soccer fields, outdoor hockey rinks and playground equipment. Or a park that has a very specific limited use and is not entirely accessible to it's citizens. The city should pursue a use for the property that will encourage it's citizens to continue fitness activities as a lifelong endeavor. Thanks for considering my thoughts. Dan Mueller 5614 Sherwood Ave. TO: THE EDINA FIRE DEPARTMENT A NOTE TO THANK YOU FOR YOUR KINDNESS AND PROFESSIONALISM IN YOUR HANDELING OF MY DILEMMA ON THE AFTERNOON OF SATURDAY JUNE 14T" THE CUT OVER MY EYE WAS BLEEDNG PROFUSELY WHICH MADE QUITE A MESS. EVERYONE CLEANED UP OUR HOME BEAUTIFULLY AND THEN BROUGHT ME SAFELY TO FAIRVIEW SOUTHDALE HOSPITAL. IN APPRECIATION OF YOUR HELP I AM GIVING YOU THESE COOKIESN AS A RESIDENT OF EDINA, I AM VERY PROUD OF OUR FIRE DEPARTMENT AND THE PARAMEDICS. r4--Z PHILIP H. BROAT 4820 ROLLING GREEN PARKWAY - EDINA, MN. 55436 U C41 � 'VITA THANKS! 12 i-t r cTF7xf7lvrr-#-s fr-oUro, cL apercx�m;tx- V\I,\ 4-p- votun hoer sc #-I/ - 0 � ��al3S ,C2 '7J C, "c"te Heather Branigin From: Bernie Beaver <bbeaver44 @gmail.com> Sent: Thursday, June 19, 2014 10:26 AM To: Edina Mail Subject: 66 West Apartments Attachments: Licoln Place 2012.pdf; ATT00001.htm; Licoln Place 2013.pdf; ATT00002.htm Mayor Jim Hovland and Members of the Edina City Council City of Edina 4801 W. 50th Street Edina, MN 55424 RE: 66 West Apartments Dear Mayor Hovland and Council Members, I am a member of a Task Force at Edina Community Lutheran Church (ECLC) (4113 W. 54th Street) partnering with Beacon Interfaith Housing Cooperative in an effort to develop an affordable housing project for homeless youth at 3330 West 66th Street in Edina. I have been provided with a copy of the letter dated June 6, 2014 addressed to the Mayor and Council Members from Rose Minor, President of Step by Step Montessori Schools located at 6419 Barrie Road, which is in the vicinity of the proposed Beacon project. I am writing to offer additional information, which, I hope, will allay concerns raised in this letter. While we have had several meetings with community groups, businesses and individuals, we obviously have not made contact with all that we should. We are continuing to reach out to our neighbors and members of the broader community with the hope of establishing a better understanding of our goals and the proposed project. There will be a presentation to the public at the Hennepin County Library on York Avenue on June 26. It is my understanding that Beacon representatives will be seeking a meeting with Ms. Minor. In the third paragraph of her letter, Ms. Minor expressed her concern about potential crime in the neighborhood and cites police reports related to the Nicollet Square property in Minneapolis. First, I think it is important to understand that these police reports are not limited to issues involving Nicollet Square residents but include incidents from outside the Nicollet Square facility that may be reported by Nicollet Square staff or by others who simply report that address. Further, I suggest that using statistics from an urban location is not a good source for predicting what may happen at a suburban location such as the proposed 66 West Apartments. The experience at Lincoln Place, located in Eagan, is a better source for predicting crime potential in a suburban location. It is my understanding that Lincoln Place is the only suburban facility in Minnesota serving a population similar to that which we expect to serve at 66 West Apartments. On May 2 of this year I visited Lincoln Place for a tour and conversation with the property manager. Lincoln Place (not developed by or managed by Beacon) has 25 units serving youth who have recently experiencing homelessness, is located near a commercial area and a regional transit center. It is also located adjacent to apartment buildings, and in close proximity to single - family homes. Following my visit at Lincoln Place, I contacted the Eagan police officer responsible for liaison with the facility and received police reports (copies are attached to this message). From these reports I learned that during all of calendar years 2012 and 2013 there were a total of 37 police calls at Lincoln Place (22 and 15, respectively). I suggest that it is important to understand the nature of those calls: 13 involved fire alarms or medical issues, 12 involved administrative matters (follow up on previous calls, traffic stops or parking violations and background checks), 4 involved theft or fraud and 8 involved potentially threatening issues such as disturbing the peace, harassment or domestic matters. I have not investigated further to determine which of those calls may have involved a Lincoln Place resident as either a victim or an alleged perpetrator. The police officer that I spoke with indicated that these calls were no different in number or nature than the calls they might expect from any other apartment building. Our ECLC task force and Beacon are attempting to find a suitable housing location for youth in our suburban community who are no different than other members of that community but only lack a suitable housing alternative. It is our belief that 66 West Apartments will fill that need. It is regrettable that Ms. Minor feels that some parents have declined to enroll their children at her school. I can only conclude that if the 66 West Apartments proposal was a factor in those parents' decisions that it was based on some combination of misunderstanding, misinformation and a bias about what to expect from an unknown population. Let us not perpetuate those misunderstandings by accepting unfounded assertions. There is a small part of our community in need of housing at an affordable cost and with services that will help to propel them to be contributing members of our community. Please support the efforts of Beacon and the others in our community who want this project to succeed by allowing the necessary zoning variances. Sincerely, Bernie H. Beaver 6225 Fox Meadow Lane Edina, MN 55436 Fzgan Police - Gaunt of CAD Incidents Between: 1/1/2012 12:00:00 AM And: 12/31/2012 11:59:59 PM Total: 221 Total: 22 End of Report 5 May 2014 Page 1 Eagan 1997 Gold Tr Police - Gaunt of CAD Incidents Between: 1/112013 12:00:00 AM And: 12131/2013 11:59:59 PM Total: 15 UALARM -FIRE 3 L /BKGROUND /PRINTSIGU 1. L /DISTURBING,PEACE/D 1! UDOMESTIC FAMILYiNE 2 UFOLLOW -UP - 2 L/MEDICAL 2 LIMENTAL HEALTH -CRIB 1 UPARKING COMPLAINTS 1 L /REPO- PRIVATE TOW 1 USUSPICIOUS PERSON! 1 Total: 15 End of Report 5 May 2014 Page 1 Heather Braniain From: Meg Mannix <megmannix @comcast.net> Sent: Friday, June 20, 2014 3:43 PM To: Edina Mail Subject: Support for 66 West Dear Mayor Hovland, I write to express my support for the Beacon Housing project, 66 West. I hope that the City Council approves this much - needed housing for homeless youth. Meg Mannix 4511 Arden Ave. Edina, MN 55424 952- 927 -0648 i Heather Branigin From: Winnie And Steve <martins6012 @gmail,com> Sent: Sunday, June 22, 2014 10:43 PM To: Edina Mail Subject: Sat walk Mayor Hovland, Thanks for the walk on Sat. I apologize for leaving early, but flooding basement called. can't stress to you enough the importance of getting The Fred Repurpose Process "right. ". From all interested parties in Edina everyone can agree the "process" is wrong. Get this right. The Schoenbauer's shouldn't be the ones to decide our 43 acres in a span of 3 months. That land belongs to the community and the opportunity to do something great is upon us. Wetlands, walking paths .... all been done. Look further and deeper. Please be our voice - show the community we can get this right. Be transparent and put ALL ideas on the table. Thanks. Winnie Martin Martins 6012@gmail.com C). 952 - 484 -5575 1 Heather Branigin From: Sent: To: Subject: Attachments: Dear Mayor Hovland: Hieb, Mary (MHFA) <Mary.Hieb @state.mn.us> Monday, June 23, 2014 10:27 AM Edina Mail Minnesota Housing - Notification of Local Official D7720 M16787 66 West_Edina.pdf Minnesota Housing and its funding partners have received a request for multifamily funding referenced on the attached Notification of Local Official form. We provide selected applicants financing for the development, construction, acquisition and rehabilitation of decent, safe and affordable rental housing. As part of the review process, Minnesota Housing is interested in receiving your community's comments regarding the proposed development(s). Please provide any comments you may have on the proposal(s) to Minnesota Housing by July 21, 2014. If you have previously submitted comments on the following proposal(s), it is not necessary to do so again, unless you wish to add new or additional information. Please address your comments to: Minnesota Housing Mary Hieb 400 Sibley Street, Suite 300 St. Paul, MN 55101 -1998 Mary.Hieb@state.mn.us If you have any questions, please call Mary Hieb at (651) 296 -8185, or toll free at 1- 800 -657- 3701. Thank you in advance for your time and consideration. Sincerely, Diana Lund Multifamily Production Manager Mary Hieb I Minnesota Housing 1 400 Sibley Street, Suite 300 1 Saint Paul, MN 55101 651.296.81851 800.657.3647 1 tty: 651.297.23611 www.mnhousing.gov Minnesota Housing finances and advances affordable housing opportunities for low and moderate income Minnesotans to enhance quality of life and fosterstrong communities. iY if1 WO BY Minnesota Housing 1-inerice Agency Notification of Local Official 1. Please provide the following information in typewritten form and submit electronically. 2. Please provide the name of the local official jurisdiction and name and address of the political jurisdiction's chief executive officer (in most cases Mayor) in which the proposed project will be located. Name of Political Jurisdiction:City of Edina James Hovland Mayor 612- 874 -8550 Name of Chief Executive Officer Title Telephone 4801 W. 50`h Street Edina MN 55424 Address City State Zip mail @EdinaMN.gov E -mail address: Notification of Housing Proposal 66 West Apartments Edina Development Name City Beacon Interfaith Housing Collaborative Developer 1 ❑ # of Buildings New Construction 333066 th Street W Street Address ❑ z ❑ Substantial Adaptive Historic Rehabilitation Reuse Building Brief description of proposal: Through an adaptive reuse of an existing building, Beacon Interfaith Housing Collaborative, in colloboration with Edina Community Lutheran Church proposes to create 39 units of housing serving unaccompanied Vouth in Edina. The progect will provide on -site services for the young adults, ages 18 -21. Notification of Local Official - HTC Form 18 1 of 1 4/2014 Heather Branigin From: Sara Schwiebert < sschwiebert @ScholarshipAmerica.org> Sent: Monday, June 23, 2014 12:17 PM To: Edina Mail Subject: FW: 66 West Housing Project Follow Up Flag: Follow up Flag Status: Completed Dear Mayor Hovland and Members of the Edina City Council, I am writing to support the proposed affordable housing project for the former TCF site on 66th street. As a long -time Edina resident and a member of the housing task force at Edina Community Lutheran Church, I see the need for this kind of facility in the western suburbs. Statistics show that we have over 300 homeless youth in the western suburbs every night. Although this facility won't address the whole problem, it will definitely be a great first step to provide some of that population a path to economic stability. I realize that there are some area businesses and individuals that might have some reservations about this kind of facility. I would urge them to visit Nicollet Square (at 37th and Nicollet) that is the model forthe proposed 66th street development. Although some neighbors were initially concerned about that building, they have now become strong advocates for the facility— actually doing fundraisers! With an attractive, well- maintained building and residents able to take on entry -level jobs for nearby businesses, the area has realized that the facility is a great addition to their neighborhood. I am confident that the neighbors of the Edina facility would come to the same conclusion. I thank you for your consideration of this proposal and look forward to moving ahead with this project that will demonstrate Edina's commitment to young adults who might otherwise fall through the cracks. Sara Schwiebert 5909 Beard Avenue South Edina, MN 55410 June 20, 2014 Mayor Jim Hovland Members of Edina City Council 4801 W. 50th Street Edina, MN 55424 Dear Mayor Hovland and Members of City Council, Shepherd of.the Hills Lutheran Church in Edina wants to show our support for the development of 3300 West 66th Street. This development will provide affordable housing and support for homeless youth and young adults in the southwest suburbs. Homeless youth are the fastest growing subset of homeless people in the state of Minnesota and yet it is an invisible population. Most of us don't see homeless minors because they find different ways of finding shelter, living in friends homes and tent cities for instance. The Gospel calls us to love one another as God has loved us and love our neighbors as ourselves. This is also the mission of Shepherd of the Hills: "To love God and neighbor in the Spirit of Jesus." Jesus consistently opened the eyes of people in order to help them see more clearly the brokenness in our world and to see the needs of the people. He reached out to people and cared for those who were most in need by feeding them, or connecting them to a community. Jesus called us to action. Our community cares about homeless youth and young adults. We are working to ensure that all people have their essential needs met by partnering with other non - profits in our local community. We believe that 66 West Housing Development is an important part of the solution to a big problem facing too many people today. The work of Beacon is already making a difference in the lives of young people at Nicollet Square. It is skilled at developing supportive housing that will be an asset to people it serves and the community. The location near Southdale Shopping Center allows residents at 66 West to find local work and also live on a bus line. All of these are important reasons why this location is a good place for this housing development. Shepherd of the Hills opened its doors on November 29, 1954. 60 years later, we are still a strong, vibrant, and welcoming congregation that doesn't shy away from difficult conversations about faith and doesn't restrain from helping out the community both locally and globally. Our congregation continues to ask the question of how can we help others in order to make individuals lives and our community stronger. One of the ways we believe we can do this is through our support of 66 West. Than ou! Re rend Joanna Mitchell Pastor of Shepherd of the Hills Lutheran Church Kathy iemer Church Council President 500 Blake Road South + Edina MN 55343 -8598 • (952) 935 -3457 • Fax (952) 935 -6127 www,sothchurch.com { i l 1 I ! i i i i✓�..tr�f.._ � � i t s :I .t 1 �`.•.0 r1�t , t � R 'r ..�'.�„ .4�t �t r Q wrm CJIl I e-1 ?d6(1- Heather Branigin From: Bobby Jackson <thenewyorkjets @yahoo.com> Sent: Tuesday, June 24, 2014 6:30 PM To: info @ci.apple- valley.mn.us; Edina Mail; jacobsjeffrey @comcast.net; ea nderson @city. mankato. mn. us; Nora.Slawik @ci.maplewood.mn.us Subject: Bobby Jackson New York Jets Hall Of Fame Attachments: Maury Show jpg; President's Letter jpg; Hopatcong2013.pdf; SchoolNo23Elizabeth.pdf Dear Honorable Mayor: Respectfully, I would like to speak with you and, or to your assistant regarding two national celebrity community enrichment tours that we are facilitating this summer. We have a Youth Leadership, Stop Bullying Tour and a Get Fit America - Change Your Eating, Change Your Life Wellness Tour. You can view both programs, feedback letters, and references on nbctelevision.org. NBC, CBS, ABC, and Fox News interviewed us last year during our national youth tour. The Fox News interview is on the home page of our nbctelevision.org site. We are going the distance with Mayors and communities nationwide to ensure good health and successful outcomes for our children. This is a proactive leadership initiative. Share this with your leadership team, the City Manager, Police Chief, Library Manager, Parks & Recreations Director and schools. Duane West is traveling nationwide to help children and adults eat healthy and to get fit for life. The goal of our summer celebrity Get Fit America, Change Your Eating, Change Your Life Wellness Tour is to help business professionals, senior citizens, children and communities improve the quality of their health and lives and to help everyone in the community maximize performance in the work place and schools. The primary goals of the youth leadership, stop bullying tour are to keep children safe, stop bullying, and to help children become future leaders. The tour is from July 15 - August 30, 2014. The duration of the workshops are 30 minutes, 1 hour, half -day, and full -day. There is Q & A, an inspirational "Dream It, See It, Live It" inspirational motivational presentation, one -on -one advice, autograph signing, and a celebrity book signing. Generally, when people feel good about themselves they are more excited about their lives. They are energized and productive in more areas than one. Most importantly, a healthy, efficient workforce and parents create stronger communities. A productive community, the village, is what our children need with urgency to become future leaders. We are aiming high, success starts with a plan and action. We would love to add your city to our tour list this summer. If you need a fee schedule, please e- mail me at thenewyorlcjets ,yahoo.com or from our nbctelevision.org website. I look forward to speaking with you. I can be reached at (404) 399 -8805. You can call me and D. West anytime, our leadership programs are year round. And our discounted community enrichment program rate is applicable for the entire year for all Mayors nationwide. Have an amazing day. Best regards, Bobby Jackson New York Jets Hall Of Fame Florida State University Hall of Fame President of National Leadership Program maury February 7, 2007 Dear D. West: 1 sm proud of you. Your work on our show has been incredible over the past nine seasons. Same of the programs.you have appeared on. were the highest rated in daytime television. You arc truly it huge asset to the Maury Show. Your words of encouragement and professfonal support create positive oaaomes fer countless guest on the show and sends masaga of hope to millions of our viewers. In addition, the show receives numerous calls and lamrs from parems and concerned citizens regarding your help and support with their children, relationships and family issues. This is a true reflection ofthe'outstanding job you are doing and have done for years . Every year, you have grown as an on -air expert television, personality. Communities, families, battered women and- childmu are allbed¢61ing globally front your motivation, leadership advice and life strategics on T1w Maury Show. I value your commitment, honor your expertise; a most importantly, cherish your friendship. If there is anything that I can do to help you in anyway, please let me know. Friends for life! Sincerely,. P F�au.{huP.heC'" O Fv%cutivc Produce, r # THE PRESIDENT'S COUNCIL PHYSICAL FITNESS AND SPORTS December2,1994 Mr. Duane West 303 Park Place Irvington, NJ Of 11 Dear Mr. West On behalf of the President's Council on Physical Fitness and Sports (PCPFS), It Is a pleasure to congratulate you on your many accomplish= ments In the field of sports and fitness. As athletes, we credit much of our success In life to the benefits of exer- cise.and being ft and the many rewards associated with a healthy life- style. You obviously have become a legend in your community. You have positively influenced the fives of countless children through your work in was schools, teaching them the importance of physical activity and fines. You are to be commended for your guidance; patience and love of youth sports and fitness. We extend best wishes for continued success In all you do. Sincerely, Florence Griffith Joyner Tom McMillen Co -Chair Co -Chair 74I I6NNSYLVANIA AVENUE. N.W. -.SUITE 23. - WASUINGTON. O.C. IOTEI -IEEE (NONE, ii f.]1] -•]!]S rwY, lES•E01] /11 Hopatcong Elementary Parent Teacher Organization PO Box 57 Hopatcong NJ 07843 October 15, 2013 Dear Pro Athletes, I wanted to thank you once again for the amazing program D. West performed for our students. It was engaging, entertaining and very educational. The way he presented his anti - bullying message was outstanding. As he told his personal bullying story, there was not a dry eye amongst the adults in the room. To think that a grown man actually wore shoes too small for his feet to his NFL tryouts due to being bullied as a child, is heartbreaking. Because Dee had the courage to share that with our students, I know it has made a lasting impression. Dee's method of inspiration has motivated and enriched our students, and for that, I cannot thank you enough! Sincerely, Sondra Kiss PTO Coordinator Hopatcong Elementary Schools NICHOLAS MURRAY BUTLER SCHOOL NO. 23 501 Union Avenue, Elizabeth, New Jersey 07208 (908)436-5900 March 31, 2014 Pro Athletes, Inc. Duane West, National On -Air TV Personality Bobby Jackson, New York Jets Hall of Fame Dear Mr. Jackson, It is with great pleasure that I share my feedback with you regarding the presentation given by Mr. Duane "D" West on March 25, 2014. On a Friday morning, in a gymnasium filled with teachers and students in grade 5 -8, Mr. West commanded the attention of all for over an hour with his engaging, inspiring and thought- provoking message of hope. This was notably accomplished without the assistance of a microphone, as he preferred to be able to move around and just `speak from his heart'. Throughout my years as a school principal who regularly invites speakers in to address our students, Mr. West by far has been one of the most energetic and passionate speakers that I have witnessed within a school. Not only did he challenge our students to believe that anything is possible, "D. West" challenged every adult to be that source of hope and support each day. His personal story of perseverance in the midst of seemingly impossible circumstances connected with my students' emotions as evident by their conversations after the assembly both with Mr. West as well as faculty and peers. Like others have said, their connection with Mr. West, prompted students to surround him after the assembly for pictures, autographs or simply just to talk. As I stood close by, my heart was warmed as I watched him speak a word of life to each child as if that child was the only one in the room. This experience was not limited to our students as Mr. West also took the time to impart words of encouragement to the faculty, especially school administration and as promised sent a packet to our school with autographed photos for our entire student body. His ability to make every person feel uniquely special is without a doubt a gift that needs to be shared for years to come. Without reservation, I would recommend Mr. Duane "D" West to any school team that is seeking a motivational speaker to spread the message of HOPE. I know that your school will never be the same. Sincerely, Berthenia Harmon Carolina Principal Heather Branigin From: KDahlheimer @comcast.net Sent: Wednesday, June 25, 2014 8:12 AM To: Edina Mail Subject: Ken Potts Hello ... A number of weeks ago I watched the meeting where Ken Potts and his wife spoke during "community comment" about a situation at their home and also about their concerns that ordinances are drafted and passed but there is some question as to the effectiveness of staff in implementing them. I found the comments concerning and the mayor seemed rather blindsided but said they would follow up. I then watch a planning commission where I listen to Kevin Staunton reading a resignation letter from Ken Potts from the planning commission. His reasons are similar to the concerns expressed at the council meeting. In driving around Edina and living pretty close to the "epi- center" of tear downs at the moment, I can clearly see that either ordinances do not address many important aspects of new construction or more probably they do, but are not enforced. I think Ken Potts made some very valid points. While certainly not required, I (and I'll bet other residents) would like to know what follow up was taken after his comments at the council meeting. I have listened to Ken Potts at the meetings and regard him as a fair and very valuable member of the planning commission. He seems like the kind of person that if he felt his comments were taken seriously and procedures reviewed would not have resigned. Of course I only know what I see at the meetings but would appreciate City Staff or the mayor at least making some comments on their review process. His complaints were pretty serious and not just relevant to his property and clearly he should know well what should happen vs. what is happening. Thank you in advance for any clarification on this matter. Kathleen Dahlheimer 4801 West 60th St. Heather Branigin From: WinnieandSteve Martin <martins6012 @gmail.com> Sent: Wednesday, June 25, 2014 10:33 AM To: Edina Mail Subject: Community input, Speak up Edina feedback Dear Mayor and Council Members, I have a grave concern with the lack of communication and information that is currently being made available to residents of Edina about the Fred Repurpose Project. To date, there has been minimal information provided and no recent updates as to information after the Open Forum, 6/12, and Walk this past Sat.,6 /21. At the Open Forum there were 100 people in attendance and all names /emails were taken. To date, there has been no correspondence, or follow up. The Repurpose website link currently contains no new updates although there has been "talk" that this topic will be discussed at Council 7/1, and "maybe" another potential walk - through sometime early July. http:/ /edinamli.gov /index.php ?section = fred - richards- repMose I spoke with Mary Brindle, 6/6, about my concerns at the Art Fair Booth about the lack of communication by the City, and Park and Rec. which I believe correlates to the lack of feedback you are receiving from residents. I know Council Member Sprague has urged people to reach out via the website and I know Mr. Gilgenbach and Council Member Bennett had dialogue regarding the poor number of hits /input given via Speak Up Edina, http: / /speakppedina.org/ discussions / fred- richards- repurpose- process.To date, only 8 have responded and 1 blog was posted by Park Board Member Steele. I bring this to your attention with the hope that there will be more of an effort to make residents aware of not only impending changes, but also options. Residents need to be given an opportunity to rank their preferences with all options weighed. A continuous theme in this community, specific to Council /City decisions, is a lack of transparency. Any efforts that can be made to provide more information, more media blitzes and more transparency will only help the process to run smoother. Residents want a better process. 42+ acres is an absolute gem. The Repurpose Project deserves more attention, due diligence and creativity than what is currently on the docket. This could be so many things..... meeting the needs of many residents ...... if only those residents were notified that they actually had a voice and could weigh in on the options. Thank you. Winnie Martin martins6012 gg,mai l . com 6012 Ewing Ave. S. 55410 Heather Branigin From: tpaulson @1992ventures.com Sent: Wednesday, June 25, 2014 11:31 AM To: Edina Mail; jonibennettl2 @comcast.net; Mary Brindle (Comcast); joshsprague @edinarealty.com; swensonannl @gmail.com Subject: Arden Park D Neighborhood Roadway Reconstruction Dear Mayor and Council Members, I am writing today regarding the roadway reconstruction project proposed for Arden Park D Neighborhood. More specifically, my questions relate to Juanita Avenue. In August 2013, residents on Juanita Avenue received a letter from the City highlighting aspects of the project. The letter also included the following statement, "A future questionnaire will help us evaluate the need for sidewalks and streetlights." In June 2014, residents on Juanita Avenue received another letter from the City and a questionnaire regarding the project. The questionnaire included questions about streetlights, but no questions about sidewalks. Buried in the questionnaire instructions was the statement, "As part of the questionnaire, staff would like to know which side of the street a proposed sidewalk would be best served along..." Keep in mind, this was not a question on the questionnaire, nor was it a question on whether or not residents want a sidewalk. In subsequent conversations, Chad Millner indicated the City's, and Council's plan to add a sidewalk to Juanita Avenue. Here are my questions: 1) What evaluation took place between August 2013 and June 2014 that led to the City and Council determining that Juanita Avenue needs a sidewalk? 2) Were the residents of Juanita Avenue part of the evaluation? I look forward to each of your individual responses to these straightforward questions. Respectfully, Troy Paulson 5116 Juanita Avenue Heather Branigin From: Jackie Bezos ( Bezos Family Foundation) <jackie @bezosfamilyfoundation.org> Sent: Wednesday, June 25, 2014 1:20 PM Subject: Thank you for supporting a National Commitment to an Early Learning Nation Dear Mayor: This past Monday, June 23, many of you voted Yes on a historic vote —you voted Yes for children, parents, caregivers and families across America. By unanimously passing Resolution 8 at the U.S. Conference of Mayors in Dallas, supporting a commitment to build an Early Learn Nation by 2025, you have — without any reservation — made our youngest children a national priority. Scientific research clearly shows engaged parenting and caregiving in early childhood — starting at birth — is a key contributor to lifelong health and productivity. To support you in your efforts to build an Early Learning Community, I want to make you aware of an Early Learning Nation website which is being launched today. You can link to it here. On this site you can access a variety of resources that will help guide your Early Learning Community effort. The case study examples provide links to the highlighted initiatives that are underway. You can see, firsthand, how other cities and communities are using their individual and collective assets. Although we are pleased to support the launch of this website and to disseminate the latest scientific research, the goal is to also crowd- source the efforts in individual communities rapidly, to learn from one another. As additional mayors and community leaders commit, through this site, to building an Early Learning Community and an Early Learning Nation by 2025, it will be your examples populating a website intended for wide and frequent use by all, that will lead change. And we will celebrate every effort, every step. As mayors and community leaders, you are on the frontline of this movement. The position you hold in your city and community provides a unique leadership opportunity to make a lasting difference for children, parents and families. We are grateful for your commitment and we are pleased to support you by providing this online resource. Thank you for all you do in your city and community. It is only by walking shoulder to shoulder that we will truly become an EarIV Learning Nation. With deep gratitude, Jackie Bezos P.S. And please make sure to like the ELN 2025 Facebook page: face book,com /eIn2025 and also follow us on Twitter @eIn2025 Name: O'he r So rum Address: 5R q 4 ikm rn'iN b rd Trad 'H-;or Lake J 1V1,V 56-37(;?-, Congregation: , Jo- k -s Lukhema 6hako Dear Edina City Councilmemlier, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults Please help suburban youth experiencing homelessness by supporting this project. Sincerely, Name: ALx-e L, x* AJ ` G Address: Congregation: Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults Please help suburban youth experiencing homelessness by supporting this project. Sincerely/ SS® r ®VCJ Edina City Council 4801 West 50th Street Edina, MN 55424 I TO " T V RI-1 t IS.)UP4 20-14 PHI L Edina City Council 4801 West 50th Street Edina, MN 55424 Name: �,4 � Address: V-" Congregation: o �, L���^ Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, 5_4244 39:i 49 Name: f �Yd JI-6 h Address:��� j Congregation: Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults Please help suburban youth experiencing homelessness by supporting this project. Sincerely, G MT4 563T, IS 3LA 20 4 PI 1_ Edina City Council 4801 West 50th Street Edina, MN 55424 lt��:!tl!!tl�tia��tra�t: tail tl�l' ��1�1 '!!llttlllli���t�l!,��j'tt' IM INAMEATTOLISS IN N. 150531 17 JUN1,2011 PH '­P L � •r�+u:�. w`'`n,+:,�m�'° g'd's d � 1 Edina City Council 4801 West 50th Street Edina, MN 55424 j°! ji'! !`l?jtt7 ? fttl f.i {{'jlh !!!i 1 ijt'i ! I I i 'i j USA I forever Administrative Office 2610 University Avenue West Suite 100 St. Paul, MN 55114 T. 651. 789 6260 Beacon INTERFAITH HOUSING COLLABORATIVE Qti��,k 2 31 Zb l 4 -Iva o'W o s w (-V- Ike www.beaconinterfaith.org . Dear Edina City Councihnember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, Name -M Address � f ���'� 6 & g-5 le v n1C. Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, Name Address Edina City Council 4801 West 50th Street Edina, MN 55424 Edina City Council 4801 West 50th Street Edina, MN 55424 5.49 postage required 5.49 postage required Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, Name Address , Dear Edina City Councilmember, Edina City Council 4801 West 50th Street Edina, MN 55424 The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, Name x,41 t 7�'�,�cSorl Address 7/q E, Edina City Council 4801 West 50th Street Edina, MN 55424 s.qg postage required s_qg postage required Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, U Name Address 01 Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, rC% Named Address � L g n ts�f�vr2e (1) f k'L Edina City Council 4801 West 50th Street Edina, MN 55424 Edina City Council 4801 West 50th Street Edina, MN 55424 S.as postage required =.as postage required s.49 Dear Edina City Councilmember, postage required The city of Edina can help young people find stable housing and end homelessness. s.qg postage required On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, "J,itl1 Edina City Council 4801 West 50th Street Name Q v. =t �T €�� ( Ja N S s ►J Edina, MN 55424 Address 14 t-N W S i �� � DR U)";>3 �����3 -fc, OhAJ SS RAMC McAa- Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, Edina City Council 4801 West 50th Street Name MARK D) C R A U 6 R Edina, MN 55424 Address (a"')) 7 2 W k `•-Cc>e- Ave Miv3n e4- v:nNcL� MtV Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, Name 4.1 t S. L h a � 4t �C u rjp At, Address u �. !a / 3 /� L/ * Dear Edina City Councihmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, Name '10�a-t Address F/ euMC `y , Edina City Council 4801 West 50th Street Edina, MN 55424 Edina City Council 4801 West 50th Street Edina, MN 55424 5.49 postage required 5.49 postage required Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, Name I . Address ,� g -)-7 & -� Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, Name Address w4 Edina City Council 4801 West 50th Street Edina, MN 55424 Edina City Council 4801 West 50th Street Edina, MN 55424 6.49 postage required 5.49 postage required Heather Branigin From: dmiller <deanne.miller @gmail.com> Sent: Wednesday, June 25, 2014 2:38 PM To: Edina Mail Subject: Fred Rogers ideas I know this is a long list of links but I think each is important in describing out opportunity to make the Fred something really special - not just for the people who live near it - but to make it a destination for people - htip: / /www. governing. com /generations /government -mana eg mentlgov- senior - playgrounds- popping- up.html http://www.activeoutdoors.info/theoutdoorblog/Axticle66.html http: / /earthplay. net/ http: / /thetimes- tribune. com/newslhealth- science /benefits -of- outdoor- exercise -go- bevond- fitness -1.915 657 http : / /www.travelinp-thought. com/2012 /071friday -fun- local - splash -p ads. html and beautiful - so residents love it --- http://upload.wikimedia.or wikipedia/commons /6/66 /Gramercy Park interior W_ agte.jpg https://www.planning.org/cityparksibriefing-papers/tourism.htin June 25, 2014 Mayor Jim Hovland and Members of the Edina City Council 4801 West 50th Street Edina, MN 55424 Mayor Hovland and Edina City Council Members; As an Edina resident of more than 40 years, I'm writing in support of the proposed 66 West Apartments for homeless youth in Edina, Bloomington, St Louis Park, Richfield and southwest Minneapolis. Sponsored by Beacon Interfaith Housing Collaborative, the purpose of 66 West is to provide a safe, supportive living place for homeless youth ages 18 -22. The proposed location near Southdale is ideal in that it offers access to transportation and the possibility of employment from the many nearby retail, healthcare and service establishments. There is such a need in our southwest suburban area for housing and support for homeless youth. Often we don't see them as they drift from one temporary arrangement to another, but they exist Can you imagine what it would be like to live, believing no one cares about you, your safety, your future? What a gift could be given, both to the individual as well as society if Edina would agree to support Beacon's 66 West Apartments. By providing a safe place to live, education, training and a chance to get a firm footing from which to grow, there's no telling what these youth might accomplish in the future. I'm sure there are some who believe the proposed site should be used for retail, healthcare or housing, but do we really need more of these? I strongly urge each of you to step forward and be a leader in addressing this urgent need by giving 66 West your full support and backing —the youth who benefits may be someone you know. Sincerely, _ Mar aret S. Ke t t g rseer 4613 West 62nd Street Edina, MN 55424 Heather Branigin From: Sally Schmidt <sallyschmidt @schmidt- marketing.com> Sent: Thursday, June 26, 2014 4:33 PM To: Edina Mail; joni ben nettl2 @comcast.net; Mary Brindle; joshsprague @edinarealty.com; swensonannl @gmail.com Subject: Transportation Issues My husband and I moved to Edina almost four years ago and live on Wooddale Avenue. I cannot tell you how disappointed we are with the decisions you have made regarding bicyclists. Living on Wooddale, we witness the bikers' behaviors daily. For example: • The group of men riding their bikes North on Wooddale from the parking line to the center stripe —four across — preventing cars behind them from passing. • The businessman riding his bike South on Wooddale hands free, drifting frequently from the bike lane into the car lane. • The scores (hundreds ?) of bikers who fail to stop at the stop signs at the intersections of Wooddale and 54th and 58th. Here is the reality: Motorists, bikers and pedestrians need to coexist. Here is the other reality: You are playing favorites with bikes. Your motivation is unclear to me. Is it to garner more awards? To obtain more grants? Whatever the goal, it is clouding your judgment and causing unsafe conditions. You should work toward being "citizen friendly," not just "bike friendly." When I read in our local paper that law enforcement doesn't want to ticket bikers because it will go on their records, I nearly fell off my chair. I have news for you: If I blew through a stop sign in a car, I would get a ticket and rightly so. Bikers who share the road need to share the laws. Right now, your actions have created an environment where bikers ride with arrogance, lawlessness and no consequences. When we have complained before about the lack of enforcement, we were told the City was planning to focus instead on education. Then a dozen signs were posted on Wooddale and Valley View for a few weeks (as if that would make a difference). Well, since the signs are no longer up, I assume you feel every biker who passes through town has been adequately educated and you can now move into the enforcement mode. If you were to position an officer on the two corners I mentioned above, I imagine the tickets would cover the cost. In addition, word will spread quickly through the biking community that Edina enforces its laws. We came to Edina because of the reputation for a great quality of life. But that needs to be enjoyed by everyone, not a select few (many of whom don't even live in the City). Someday, a bicyclist will be badly hurt or killed, and it will be the result of your inaction. Sally J. Schmidt, president Schmidt Marketing, Inc. Southdale Centre 6600 France Avenue South Suite 672 Edina, MN 55435 E: aa-l-lyschmidtgschmidt- marketing.com T: 952.767.0115 W: www.schmidt- marketing.com F: 952.767.0378 Follow me on Twitter: httg: / /twitter.com /sM!yschmidt "Bringing the client perspective to the legal profession" Heather Branigin From: ICLEI World Congress <world.congress @iclei.org> Sent: Thursday, June 26, 2014 10:37 AM To: James Hovland Cc: Karen M. Kurt Subject: Invitation to the ICLEI World Congress 2015 in Seoul Attachments: ICLEI_WC2015_invitation_City of Edina.pdf, ICLEI WC 2015 Program Structure.pdf Dear Mayor Hovland, Please find attached a joint invitation to the ICLEI World Congress 2015 sent on behalf of Mayor Won Soon Park of Seoul Metropolitan Government; David Cadman, President of ICLEI — Local Governments for Sustainability; and myself. We look forward to welcoming you to Seoul in April 2015. Kind regards, Gino Van Begin Secretary General ICLEI — Local Governments for Sustainability Kaiser - Friedrich -Str. 7 D -53113 Bonn Germany tel +49 (0)228 976299 00 / +49 (0)228 97 62 99 -93 fax +49 (0)228 976299 01 email: world. cong-ress@iclei.org www.iclei.ora ICLEI is the world's leading network of 12 mega - cities, 100 super - cities, 450 large cities and urban regions as well as 450 small and medium sized cities and towns in 84 countries. ICEI World Congress 2015 S( ISDUNAB .ESOi.-UTONS FOR ANUF:RANFkAi RE 8 - 12 April 2015. Seoul, pepublic of Korea "i tit hosed" j I FSCAI n�4 [ C�k'rtxtxi� #n0. >:.taa �u:�lains "ttF �. C`' L .* i ICLEI World Congress 2015 'SUSTAINABLE SOLUMNS FOR AN URBAN hl! ?Ui2F �'' �� .�� Local Governments for Sustainability 13 -• 12 April 201�i • S;ritai, RetluE3ilc of Kt?rcaa . IGLEI's mission Is to build and serve a worldwide movement of local governments to achieve tangible improvements in global James B. Hovland sustainability with special focus on environmental conditions through City of Edina cumulative local actions. 4801 W. 50th Street Edina, MN, 55424 President United States World Secretariat ICLEI World Secretariat Kai ser- Fri edri ch-S tr. 7 53113 Bonn Germany 25 June 2014 Phone: +49- 2281976299 -00 Fax: +49-228/976 299 -01 Email: lelei@iclel.org Special Mayoral Invitation to the ICLEI World Congress 2015 Legally represented by ICLEI e.V., Bonn Dear Mayor Hovland, It is our sincere pleasure to invite you to the ICLEI World Congress 2015, taking World Wide Web www.iclei.org place from 8 —12 April 2015, in Seoul, Republic of Korea, under the subtitle: "Sustainable Solutions for an Urban Future ". Seoul is a long -term Member of ICLEI, and one of the sustainability leaders in both East Asia and the world. the leading global network or 12 mega - titles, 100 super -cities and Top performing ICLEI Members and other local governments will assemble in urban regions, 450 large cities and 450 small and medium -sized Seoul, alongside partners from international agencies, national governments, cities and towns academia, and the private sector. You are invited to share the most successful policies and exceptional results from your local sustainability actions with Mayors, and other local government leaders, from around the world. We are pleased to invite your engagement in a number of Mayor- focused speaking and networking opportunities at the ICLEI World Congress 2015. Following a Mayors' welcome reception, hosted by Mayor Park Won Soon of Seoul Metropolitan Government, you will have the opportunity to: • Share advanced urban projects through interactive roundtable plenary discussions with city, business and finance leaders. • Take advantage of high -level networking opportunities and city-to -city exchanges in a dedicated networking lounge. • Meet and network with the newly elected ICLEI Global and Regional Executive Committee Members, holding their inaugural meetings in Seoul. • Tour one ofthe most high- profile sustainability projects of Seoul Metropolitan Area in a Mayors' Mobile Workshop. • Connect with national and international media representatives in attendance. Marking 25 years since ICLEI's founding, the ICLEI World Congress 2015 will take place immediately prior to the World Water Forma 2015 in Daegu; five months before the intended adoption of the Sustainable Development Goals by the UN General Assembly, hopefully with a stand -alone urban Sustainable Development Goal; eight months before nations aim to conclude a global climate agreement through the United Nations Framework Convention on Climate Change; and a year before Habitat III. The ICLEI World Congress 2015 will build towards these momenta and reinforce the integral position of local governments towards achieving urgently required global sustainability targets. LEI Local Governments for Sustainability We strongly encourage you to mobilize a delegation of senior staff, young leaders, and civil society representatives to attend the ICLEI World Congress 2015, in order to maximize the take -home benefits for your local government. At this early stage in the ICLEI World Congress 2015 development, we will be especially pleased to discuss innovative and interactive methods of profiling your local government. We want to hear what accomplishments you would be proud to share with your peers, both prior to and during the event. In addition, please tell us which type of initiatives you want to learn about to best advance your local sustainable development. We firmly believe that local governments have never before commanded such a strong representation in the various international sustainability and climate change debates. Our sincere hope is that you will be able to join us in Seoul to represent, on the world stage, the outstanding work that ICLEI Members are achieving through local action across the globe. We hope to remain in close contact with you, providing further program updates and opportunities for participation as your availability becomes clearer in the coming months. PIease let us know to whom we should best address this correspondence within your local government. The ICLEI World Congress 2015 team will be happy to liaise with your office through worid.congress @iclei.org regarding your participation. Please find the preliminary program structure attached overleaf. Further information and updates are available at www .iclei.org/worldcongress20l5. In anticipation of a positive reply, we look forward to providing you a warm welcome to Seoul in 2015! Yours sincerely, �ha� David Cadman Gino Van Begin Park Won Soon President Secretary General Mayor, Seoul Metropolitan Government; ICLEI — Local Governments ICLEI — Local Governments Member, ICLEI Global Executive for Sustainability for Sustainability Committee; Chair, World Mayors Council on Climate Change. ICLEI World Congress 2015 SIUSVONA� E .50LUfl0NF> FOR AN UP6.4iNt rUTURI 12 April 2015 • Seoul,Republic of Korea (----- - --- -1 E 0 1 CL 1 0 1 1 > 0- ii 1 Core Congress M W eo 2 31 . tn U) to- Ub Congress En o Outlook C3 0 Plenary R 1- 11 Preliminary Program Overview As of 26 June 2014 Subject to change M? 9171 Sessions & round tables Mobile Workshops U) ----------- Training Sessions I 1 Side-event opportunities 1 0 UJ' CL I 0. 0 1 > 10.00 0 11:00 1 12:00 0 CL CL 0 1 1a:00 > 15:00 Aaoo. 7:00 — — — — — — — — - -1 (----- - --- -1 E 0 1 CL 1 0 1 1 > 0- ii 1 Core Congress M W eo 2 31 . tn U) to- Ub Congress En o Outlook C3 0 Plenary R 1- 11 Preliminary Program Overview As of 26 June 2014 Subject to change M? Legend Plenary sessions Sessions & round tables Mobile Workshops U) Evening programs Training Sessions Side-event opportunities 1 0 UJ' CL I 0. 0 1 > 0 Legend Plenary sessions Sessions & round tables Mobile Workshops Evening programs Training Sessions Side-event opportunities ICLEI World Secretariat • Kaiser-Friedrich-Str. 7, 53113 Bonn, Germany Tel. +49-228 / 97 62 99-00 • Fax +49-228 / 97 62 99-01 a Email: world.congress@iclei.org www.iclei.org/worldcongress20l5 ]PREMME PR 1A' .,1 Post Office Box 390195 Edina, Minnesota r June 26, 2014 Chad N illner City of Edina 4801 West 501 Street Edina, MN 55424 Re: Major Sewer Problem! Gentlemen: Background-Problem Description: The Premier Properties Group purchased the 16 -unit apartment at 4000 Hazleton Road in January of 2014. On Thursday, June 19th at 9:30 a.m., the sewer backed up into four units on the lower level causing major damage. The "staff involved" made a decision to use apartment units as the "bounce area" rather than pumping into the storm system. Perhaps there should be a thought out policy to follow when this happens in the future. We secured plumbing help and then found the sewer clean out trap with the intent of plugging the reverse flowing sewer. To our surprise there already was a large industrial valve in place that: (1) allowed shut -off; and (2) made it clear that this had happened previously. We had to shut off water in the building, provide satellite toilets, and have discussion on how to compensate the extremely inconvenienced residents that lived without water and sewer until Saturday, June 21St. The city staff involved were supposed to monitor the flow situation and tell us when to turn the sewer back on. Apparently there were other priorities as the promised call never came. On Saturday we could see in the outside manhole the flow had changed and we went back on line. Action Required 1. The sewer in the Southdale area is obviously not adequate. 2. It would seem that the sewer system was sized for shopping and industrial area land usage that might involve five or ten seldom used toilets per acre. 3. We need a well thought out solution fast. Perhaps before new apartments now planned begin construction. 4. Do we now measure the percent capacity utilized in the main pipe exiting our local sewer system? June 26, 2014 Page Two 5. Since this has happened more than one time in the past, it is reasonable to assume it will happen again especially as new residential units are added. 6. Without a prompt solution from the city, Hazelton will need some type of septic tank system that can be switched on, hopefully automatically, when the back -up occurs. 7. In as much as growth will continue, the best solution would be for the city to somehow monitor sewer flow and have some type of provision to handle overflow. ,. Please advise Premier on the course of action we should take. Will the city provide back- up for an inadequate system or are we "on our own" in adding a necessary private back -up system? Please advise Premier if the city has financial responsibility for current losses plus our costs if we are forced to add the needed private back -up system. Thank you in advance for your consideration, analysis, and hopefully timely response to this matter. Sincerely, &44. Q�� Dean M. Akins cc: James Hovland, Mayor City Council & Attorney, City of Edina ✓ Planning Department, City of Edina 4000 Hazelton Residents, Edina 2 To: MAYOR & COUNCIL From: Debra Mangen City Clerk Date: July I, 2014 Subject: Correspondence Action Requested: No action is necessary. • r�00RPOR/`�f'9 • 1888 Agenda Item #: VIII. A. Action ❑x Discussion ❑ Information ❑ Attachment: Attached is correspondence received since the last packet was delivered to Council Members. City of Edina • 4801 W. 50th St. • Edina, MN 55424 r. Heather Branigin From: Ken Potts <potts003 @gmail.com> Sent: Friday, June 27, 2014 2:04 PM To: Scott Neal; Edina Mail; David Fisher; jhovland @krausehovland.com Cc: Heather Beal Subject: 4238 Final CofO Attachments: Final Permit Violations 2014.pdf Scott, I still hold out hope that you (and City Staff) will fulfill your quote from the front page of the Sun Current last April 17: City Manager Scott Neal told the Sun Current, "The home that Mr. Potts is concerned about is not complete. It should be complete soon. When it is complete, it will comply with city code." After all, you told our son Karsten in January: "I have to enforce the code; that's my job." Based on the attached annotated photo, revisions need to be made. Otherwise the City will have granted variances to code provisions without following proper procedure at both the City and State level. And you will have granted them with full knowledge as I have pointed these out numerous times over the past many months. Interior Yard Setback. The required interior side yard setback shall be increased by 6 inches for each foot the building height exceeds 15 feet. For the purposes of this subparagraph, building height shall be the height of that side of the building adjoining the side lot line and shall be measured from the average proposed elevation of the ground along and on the side of the building adjoining the side lot line to the ... top of a cornice of a hip roof. Drainage. Surface water runoff shall be properly channeled into storm sewers, watercourses, ponding areas or other public facilities. Thank you, Ken Potts Approved site plan calls for this gutter to drain to the storm sewer system in Crocker Ave. That meets the code definition of "properly channeled." The configuration shown here sends drainage toward our property and does not meet either the code or the approved plan. Final grade needs to be at least up to elevation 880 for the sideyard setback/wall height requirement to be met. City of Edina City Code Section 850 850.07 Subd. 7 (A) 3. Interior Yard Setback. The required interior side yard setback shall be increased by 6 inches for each foot the building height exceeds 15 feet. For the purposes of this subparagraph, building height shall be the height of that side of the building adjoining the side lot line and shall be measured from the average proposed elevation of the ground along and on the side of the building adjoining the side lot line to the ... top of a cornice of a hip roof. on an slop d rec ticn. of Wait w be Ens 5AL.ES REPJo5h Koller %SST:Sem Nicholas 12.013 o � U � N .p Gj 'cl a°a �U•9' U p C4 M U U td ,'° i,,* � `q.." a ;:�3i z t 115 Heather Branigin From: Ken Potts <potts003 @gmail.com> Sent: Friday, June 27, 2014 2:13 PM To: Lynette Biunno Subject: Fwd: 4238 Final CofO Attachments: Final Permit Violations 2014.pdf Please include this message and its attachment in the next Council Correspondence packet. Thanks, Ken ---- - - - - -- Forwarded message ---- - - - - -- From: Ken Potts <potts003@,gmail.com> Date: Fri, Jun 27, 2014 at 12:04 PM Subject: 4238 Final CofO To: Scott Neal <sneal - ,�edinamn. ov >, Edina Minnesota <mail(abedinamn.gov >, David Fisher <dfishergedinamn.gov >, ihovland ,krausehovland.com Cc: Heather Beal < constellationcreate @comcast.net> Scott, I still hold out hope that you (and City Staff) will fulfill your quote from the front page of the Sun Current last April 17: City Manager Scott Neal told the Sun Current, "The home that Mr. Potts is concerned about is not complete. It should be complete soon. When it is complete, it will comply with city code." After all, you told our son Karsten in January: "I have to enforce the code; that's my job." Based on the attached annotated photo, revisions need to be made. Otherwise the City will have granted variances to code provisions without following proper procedure at both the City and State level. And you will have granted them with full knowledge as I have pointed these out numerous times over the past many months. Interior Yard Setback. The required interior side yard setback shall be increased by 6 inches for each foot the building height exceeds 15 feet. For the purposes of this subparagraph, building height shall be the height of that side of the building adjoining the side lot line and shall be measured from the average proposed elevation of the ground along and on the side of the building adjoining the side lot line to the ... top of a cornice of a hip roof. Drainage. Surface water runoff shall be properly channeled into storm sewers, watercourses, ponding areas or other public facilities. Thank you, Ken Potts Approved site plan calls for this gutter to drain to the storm sewer system in Crocker Ave. That meets the code definition of "properly channeled." The configuration shown here sends drainage toward our property and does not meet either the code or the approved plan. Final grade needs to be at least up to elevation 880 for the sideyard setback/wall height requirement to be met. City of Edina City Code Section 850 850.07 Subd. 7 (A) 3. Interior Yard Setback. The required interior side yard setback shall be increased by 6 inches for each foot the building height exceeds 15 feet. For the purposes of this subparagraph, building height shall be the height of that side of the building adjoining the side lot line and shall be measured from the average proposed elevation of the ground along and on the side of the building adjoining the side lot line to the ... top of a cornice of a hip roof. TALES RERksh Koller %$ST,5eon Mchokz /20[3 Fx)t 08w.66j?U � 2 O O .0 J1 0 0 0 0 U cd w 0 4-4 ?igy stop direction- 0 C4 1'. 0 7� 00 Hall to be Engl U ma $67 so Option V4011 Pei on Ikk 1, t h 8,09ins A" in Q Tile Drive Upturned 0 U O w h:�v, 0 cd 0 CdD cgyo". Al TALES RERksh Koller %$ST,5eon Mchokz /20[3 Fx)t 08w.66j?U Heather Branigin From: Parks, Terri L <Terri,Parks @allina.com> Sent: Sunday, June 29, 2014 11:00 AM To: Edina Mail Subject: Resident of Edina to turn 100 Years Old Hello Mayor Hovland, I am writing on behalf of a very dear friend of mine. Her name is Vivian Gens, and she is a resident of Edina, MN for many years. Coming up on August 14th, 2014, Vivian will be turning 100 Years Old. What an achievement. We are planning a large birthday party for August 16th, 2014. We have contacted some of our representatives and the Governor and President Obama, and have received letters or cards of congratulations for this major achievement. Which Vivian is not aware of yet. We thought since she lives in your great City of Edina, it would be wonderful to receive a letter from the Mayor's Office of Edina also. At 99 years old now, you would never believe she is going to be 100 years old. She still drives, in January she debated if she should continue leasing her car, instead she decided to purchase it. Some grandchildren someday is going to receive a very nice care. Back in April, Vivian received a letter in the mail, informing her that her Life Insurance Policy was expiring in 5 months, Vivian was furious. She said, I thought the policy lasts until you die, because I plan on being around for a while. How many of us have that accomplishment. Vivian is very active in her senior housing community in Edina, her church, with her family and grandchildren, and friends. Sometimes we have trouble keeping up with her. She is such an extraordinary woman. A number of years ago she adopted me into her family. I don't know if this is something your office would send out. If you have any questions, feel free to contact me at my email address: parksterrilea @vahoo.com or Cell: 612 - 559 -2867 Sincerely, Terri Parks 01 This message contains information that is confidential and may be privileged. Unless you are the addressee (or authorized to receive for the addressee), you may not use, copy or disclose to anyone the message or any information contained in the message. If you have received the message in error, please advise the sender by reply e -mail and delete the message. Heather Branigin From: Jim Cousins <jcousins @wingnutinc.com> Sent: Sunday, June 29, 2014 3:53 PM To: Edina Mail Subject: Attn: City Council and Engineering I'm writing regarding 2014 Alley Improvements from 54th -56th Street West between Xerxes and York Avenues. I live at 5413 York Ave South and wanted to file my opinion on this matter. I don't feel it necessary to replace and upgrade the alley at this time. It is very usable and could easily be delated a number of years in my mind. If it's not too late, please register one more "no vote" (or two with both us owners) on this matter. Thank you, Jim & Angie Cousins Heather Branigin From: erika7777777 @gmail.com on behalf of Erika Ding <erikad792 @gmail.com> Sent: Sunday, June 29, 2014 7:40 PM To: Edina Mail Subject: Robotics Team Meeting Dear Mayor Hovland, I'm a student on the Edina High School FIRST Robotics team, and we (along with other FIRST teams) recently sent student ambassadors to Washington, D.C. to discuss STEM in education with members of Minnesota's Congressional delegation. During our meeting with Congressman Keith Ellison, he mentioned how much he enjoys working with you, and we'd like to share more about these conversations with you. In short, we would very much like to arrange a meeting with you or to appear before the City Council about our findings in Washington. Many thanks, Erika Ding Outreach Lead Edina Robotics FIRST Team 1816 - The Green Machine Heather Braniain From: Tricia Budke <tricia.budke @gmail.com> Sent: Sunday, June 29, 2014 10:30 PM To: Edina Mail Subject: Fred Richards Golf Course I wanted to send a note to the Edina City Council to let them know I completely agree with the recent letter to the editor about the Fred Richards golf course. Apparently there was no plan when the Council decided to close the golf course. Until you have a better plan for the space you should leave it as it is. The idea of making it into a promenade or park makes no sense, unless you intend to charge admission. The space needs to be self - sufficient, whether that means the equestrian idea or the garden idea or some other revenue generating idea. I personally use the Fred golf course on a regular basis so I would like it to stay as it is. Not sure if it is poor management or lack of marketing, but I understand it is in the red and something needs to be done. Hopefully more analysis will be done before closing Fred. Thank you, Tricia Budke 404 Coventry Lane Edina, MN 55435 612 - 669 -6584 Heather Branigin From: Jeff Brown Sent: Monday, June 30, 2014 3:21 PM To: Heather Branigin Subject: FW: Community Health Commission Attendance Requirements Per Karen's request. Jeff Brown, Community Health Administrator 952 - 826 -0466 ; Fax 952- 826 -0390 ` ibrown(cDEdinaMN.gov I www.EdinaMN.gov Disclaimer: Information in this message or an attachment may be government data and thereby subject to the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13, may be subject to attorney - client or work product privilege, may be confidential, privileged, proprietary, or otherwise protected, and the unauthorized review, copying, retransmission, or other use or disclosure of the information is strictly prohibited. If you are not the intended recipient of this message, please immediately notify the sender of the transmission error and then prarr�tly delete this message from your com})uter system From: Kumar [mailto:kumarbelani @dmail.com] Sent: Friday, June 27, 2014 4:39 PM To: Jeff Brown Subject: Re: Community Health Commission Attendance Requirements Thank you - it has been fun serving but I was overseas and out of town or with cases in the operating room that I could not leave. Let me know if there is any other way I can serve. Best, Kumar Belani, MD Sent from my Whone On Jun 27, 2014, at 3:46 PM, Jeff Brown <ibrown @ Edina MN.aov> wrote: Kumar, I am emailing to give you some advance notice of a letter you will be receiving from M1 Lamon, the City staff member who manages Edina's Boards and Commissions. After June's CHC /City Council work session, and the CHC meeting afterward, the attendance sheets for the CHC show that you have missed 3 consecutive CHC meetings, which is in violation of the attendance requirements (May CHC meeting, June work session, June CHC meeting). To clarify, the work session and the CHC meeting after the work session actually count as 2 meetings. So, the letter you receive will accept your resignation from the CHC for attendance reasons. I left you a voicemail at the number provided from MJ, but wanted to make sure you got the message before the next CHC meeting. I understand that you are very busy, but please feel free to give me a call if you have questions. Thanks, Jeff Brown, Community Health Administrator 952- 826 -0466 j Fax 952 -826 -0390 ibrown(Q) Edina MN qov I www.EdinaMN qov Heather Branigin From: Maura Schnorbach <mschnorbach @stpatrick - edina.org> Sent: Monday, June 30, 2014 1:39 PM To: Edina Mail Cc: Timothy Rudolphi; Allison Johnson; Betsey Violante (beviola @aol.com); Bob Hobbins; glas5716 @stthomas.edu; Jane Wyatt (Wiz); Mary Schad; Nancy Jurkovich; Steve Yanda; Sue Stenbeck (sstenbeck @comcast.net) Subject: 66 West Apartment Project Hello Mayor Hovland and Edina City Council Members, I work in the Social Justice at Saint Patrick's Catholic Church in Edina. Our Social Justice Commission and Office of Social Justice have written a Letter of Endorsement for the proposed affordable project, 66 West Apartments. We did so after careful consideration. Members of our Social Justice Commission and I attended a public meeting sponsored by Colonial Church. It featured Beacon Interfaith Ministries and Edina Community Lutheran Church. We were very impressed with the research, speakers and architectural drawings of the project. We were also impressed with the proposed wrap around services. After the meeting, we invited Beacon Interfaith Ministries and Edina Community Lutheran Church to attend our Social Justice Commission meeting. Our Pastor, Fr. Tim Rudolphi attended too! Our Social Justice Commissioners asked lots of tough questions. All of our Social Justice Commissioners live in Edina. I do too! I have lived in Edina for over 20 years! There was a lively conversation. Beacon and Edina Community Lutheran impressed us again with their knowledge, candor, experience and passion. We are aware that, "Edina has been to the dance on affordable housing at least five times "... What separates this project from the ones that were proposed previously? When I have spoken with members of our parish, I have shared that there are strong players at the table with a proven track record! Beacon has built over 500 units of affordable housing in the Twin Cities. Two Social Justice Commissioners and I also visited the model for the project, Nicollet Avenue Apartments. After an excellent tour, we went to the Butter Bakery for a delicious lunch. As luck would have it, we met one of the neighbors, Katherine Harter who had also been on the tour. She said initially, she was unconvinced about affordable housing in her neighborhood. But, she has changed her mind, because she said they are an excellent neighbor. Katherine asked us why we were on the tour and we explained that we were from Edina and there was project proposed by Southdale. She said that she is proud of her neighborhood for supporting this project. She recently attended a 400 person fundraiser called the, "Empty Bowl" to raise money for the project. She also said her daughter who is a member of the Student Council at Washburn, has 50 classmates who are homeless! This is shocking! Washburn is only about 10 minutes from Edina High School! When we also discussed the, "NIMBY" challenge. She reminded us that these are someone's children. We all had to catch our breath after she shared that with us. It is a reminder of what is at stake. Building a home, builds a life... Everything that we hold true about ourselves comes from being grounded in a place. Whether it is grand or modest. It is the place from which we are launched into the world. St. Patrick's Church is standing side by side with Beacon Interfaith Ministries, Edina Community Lutheran Church, St. Stephen's Episcopal Church, Colonial Church, Our Lady of Grace and Catholic Charities Minnesota in asking you to answer the call! The young adults that we propose to serve with this project need a home. We are asking you today to be courageous and do something big for young adults in the Southwest Metro Area. They aren't asking for a, "hand out, they are asking for a hand up!" Best, Maura Schnorbach Social Justice Coordinator Saint Patrick's Catholic Church (952)941 -3164, ext.142 mschnorbach@stpatrick- edina.org uc P Robert J. Christianson, Jr. 23 Woodland Road Edina, Minnesota 55424 952- 920 -6107 9600 South Ocean Drive, #805 (winter) Jensen Beach, Florida 34957 772- 229 -3631 RJC23(a-),AOL_Com June 29, 2014 Mr. Scott Neal, City Manager City of Edina 4801 West 50`b Street Edina, MN 55424 Dear Mr. Neal: Thank you for your reply to my letter of June 13, 2014. Unfortunately it does not address the issue at hand. We are not interested in a short-term fix. That has been done in the past to no avail. Resurfacing without remediating the underlying design flaws is a waste of time and our taxes. It has been done before and has not solved the problem. The pothole fixer is a joke. Its annual appearance does nothing; often it doesn't even fix all of the potholes that then increase in width, depth and length. Repairing the potholes is a stopgap measure better than nothing but not at the expense of dealing with the underlying issue. The street, at least in front of our houses, needs to be rebuilt from the bottom up. That means re- grading it to handle water, the installation of curbs and gutters to funnel the water to new storm sewers, which need to be installed in appropriate low spots. If that means replacing sanitary sewers, storm sewers, waterlines etc., so be it. I am hard pressed to know of any area in Edina where there is a greater need for action than where we live. You refer to the grouping of streets in neighborhoods as a means of prioritizing needed repairs. We are an island surrounded by streets in our area that have been done. For better or worse our neighborhood consists of the addresses referred to in my previous letter. It is time for the City's engineering department to implement the reconstruction of Woodland Road. Yours truly, Robert J. Christianson, Jr. / Cc: Mayor James Hoveland, Dr. Stephen Sundberg, Mr. Thomas Halvorson, Mr. Richard Jensen, Mr. William Goldenberg, Dr. Donald Lewin, Mr. B.J. Turner and Mr. Carl Geisz Name: �� G&-Ls Yn cr- 1 Address: l� ��� I� RA Congregation: E6 1101 c0m, in 1 Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night; it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Edina City Council 4801 West 50th Street Please help suburban youth experiencing Edina, MN 55424 homelessness by supporting this project. Sincerely, 0'6c""� Name: f %f $A9 S� 3 postage Address: 5 1 required Congregation: C CL C Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Edina City Council 4801 West 50th Street Please help suburban youth experiencing Edina, MN 55424 homelessness by supporting this project. Sincerely, �'� ote_CT e } Name P A4oft4j • 6.49 postage required Address: WI R �- Congregation: F'CA�, l ��� iY1 oM vi � i � V Zcavl Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Edina City Council 4801 West 50th Street Please help suburban youth experiencing Edina, MN 55424 homelessness by supporting this project. Sincerely, Name: ` 6.49 postage Address: Address: �� ��GY- k AV S. required " �11 S5 y (CD Congregation: \ C LC— Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Edina City Council 4801 West 50th Street Please help suburban youth experiencing Edina, MN 55424 homelessness by supporting this project. Sincerely, r Name: � Address: ti 5� Congregation: Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, Address: 65 ,G'v 'r Congregation: Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homel sness by supporting this project. 1 Sincer Edina City Council 4801 West 50th Street Edina, MN 55424 Edina City Council 4801 West 50th Street Edina, MN 55424 =.as postage required S.as postage required Name: Address: `-�S0 (1c Q I � -CE. HILLS 0 2X%Jt Congregation: Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, i --T-11- FAo — Name: Address: Congregation: Dear Edina City Councilmember, f`> Ptis2gEcTT bs.� Lnj i'h.ra� ;t The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, B 17 U4 Edina City Council 4801 West 50th Street Edina, MN 55424 Edina City Council 4801 West 50th Street Edina, MN 55424 S.as postage required 5.49 postage required Name: 'J W -f q ,i 4 '6 (t Address: 6'07 # ilk t �,� � M tj Congregation: L(M v'GL �f� -y,� Lu- c 4&r - � , Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, Name: Address: -��� -5 % /X G�il�s 17 ve S U Congregation: ALI Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincer Edina City Council 4801 West 50th Street Edina, MN 55424 Edina City Council 4801 West 50th Street Edina, MN 55424 5.49 postage required 5.49 postage required Name: ,,,&V,) /� �✓ Address: 0'Sk f 0 5 y I" Yi /Vv^" Congregation: Dear Edina City Councilmember, The city of Edina can help young people find stable housing and end homelessness. On any given night, it is estimated that between 200 and 300 youth are homeless in the suburbs of Hennepin County. 66 West is affordable and supportive housing which will serve approximately 39 youth and young adults. Please help suburban youth experiencing homelessness by supporting this project. Sincerely, �� M Edina City Council 4801 West 50th Street Edina, MN 55424 5.49 postage required To: City Council Item No. VIII. B. From: MJ Lamon, Liaison Human Rights and Relations Commission Date: July I, 2014 w91��r U Cl) 0 Y�Jll+i. Hy (HH0 Subject: Human Rights and Relations Commission — Local Support for Human Rights Implementation and Monitoring Attachments: I. Email from the Advocates for Human Rights 2. Letter drafted to Assistant Secretary, Bureau of Democracy, Human Rights and Labor, U.S. Department of State 3. Background information on the U.S. and Human Rights Reviews Action Requested: City Council sign the open letter to Assistant Secretary, Bureau of Democracy, Human Rights and Labor, U.S. Department of State. Situation: The Advocates for Human Rights, an organization holding all trainings for the Human Rights and Relations Commission's Community Conversations Working Group, is encouraging the City of Edina to sign on to an open letter initiated by the Human Rights at Home Campaign. The Edina Human Rights and Relations Commission reviewed and discussed the letter and all correspondence received at the June 24 regular meeting. Background: A number of significant opportunities exist for the United States to improve human rights conditions domestically. Many opportunities exist for state and local jurisdictions specifically to address human rights violations in employment, housing, and criminal justice. However, there is not currently adequate coordination between federal, state, and local governmental agencies to effectively implement current treaty recommendations or communicate best practices. In addition, state and local officials are not included in treaty reviews and often decisions are not communicated down to the local level. Additionally, although the United States has ratified a number of international treaties relating to human rights, there are still various conventions that have not been ratified. Assessment: It is the mission of the Human Rights and Relations Commission to advocate for basic human rights and needs and to collaborate with other communities and governmental organizations. The City of Edina's signature on this open letter is an excellent opportunity to advance Human Rights advocacy and awareness and encourage cooperation between all levels of government. Recommendation: 4 r Page 2 >4 • O lee The Human Rights and Relations Commission, at the June 24, 2014 regular meeting, voted to recommend that the Edina City Council sign on to the attached letter and additionally cc: the Minnesota Political Delegation, President Obama, NY Times, and local press agencies. Annie Coyle From: Lohman, Madeline <MLohman @advrights.org> Sent: Wednesday, June 18, 2014 11:39 AM Subject: Request for sign -on Attachments: INFO on US and Human Rights Reviews.pdf; State and local sign on letter to DOS- - Federal Support.pdf I writing on behalf of the Human Rights at Home Campaign, which seeks to build human rights principles into the way government operates. The Campaign is calling for improved human rights implementation and monitoring including through increased coordination between federal, state and local actors and federal resource support for state and local government agencies and officials' efforts to promote and protect human rights. To ensure meaningful human rights implementation, the Campaign is also calling for new federal human rights mechanisms to facilitate this coordination. As part of this effort, the Campaign's State and Local Subcommittee has drafted a letter to Tom Malinowski, Assistant Secretary of State for Democracy, Human Rights and Labor, calling on the federal government to: include "state and local agencies and officials in all future treaty reviews, including the upcoming reviews of compliance with the International Convention on the Elimination of All Forms of Discrimination and the Convention Against Torture, as well as the Universal Periodic Review process." "widely disseminate treaty body recommendations, communicate how they relate to state and local policy, and provide guidance on practices that can address areas of concern "; and provide "dedicated staff, education, training, and funding to help state, county and municipal governments fully comprehend and engage with the United States' human rights obligations." I hope that you will sign -on to this letter and demonstrate your support for federal guidance and support for local implementation of human rights. I have attached the letter to this email, as well as a backgrounder on treaty review. The deadline for sign -on is July 3. Just reply to me if you are interested in signing on to the letter and I will pass that information on to the campaign coordinators. Sincerely, Madeline Madeline Lohman Research, Education and Advocacy Program Associate The Advocates for Human Rights 330 Second Avenue South, Suite 800 Minneapolis, MN 55401 USA Office: 612.341.3302 1 Direct: 612.746.4696 1 Fax: 612.341.2971 mlohman@advrights.org www .theadvocatesforhumanrights.org I www.EnergvofaNation.org Tom Malinowski Assistant Secretary, Bureau of Democracy, Human Rights and Labor, U.S. Department of State 2201 C Street NW Washington, DC 20520 July [ #], 2014 Dear Assistant Secretary Malinowski, We write, as representatives of state and local government, to commend the U.S. government on its robust engagement with the U.N Human Rights Committee during its recent review of U.S. compliance with the International Covenant on Civil and Political Rights (ICCPR) and to share recommendations on how the federal government can support state and local actors working to promote and protect human rights. The U.S. government's inclusion of three state and local officials in its delegation for the ICCPR review recognized the important role that state and local officials play in implementing the United States' human rights commitments. State and local participation enriched the conversation during the U.S. consultation with civil society and during the interactive dialogue with the Human Rights Committee, adding a breadth and depth of expertise to the discussions, including on issues of homelessness, domestic violence and LGBT discrimination. The Human Rights Committee's Concluding Observations reflect that strengthening the U.S. human rights record requires cooperation and collaboration between all levels of government. They highlight numerous gaps between the protections afforded by the ICCPR and the reality in local communities. Addressing these gaps requires broad state and local awareness of human rights principles and their application to subnational entities. During the interactive dialogue Deputy Assistant Secretary Scott Busby made the laudable commitment to disseminate the Human Rights Committee's Concluding Observation to state and local actors. This commitment is in line with the Human Rights Committee's recommendations to "engage with stakeholders ... to give greater effect to the Covenant" and, "strengthen and expand [federal, state and local] mechanisms mandated to monitor the implementation of human rights... [and] provide them with adequate human and financial resources. "' Today, we write to seek your support and guidance so we can do this to the best of our ability. ' Concluding Observations of the Human Rights Committee: United States of America, para. 4(b);(d), U.N. Doc. CCPR/C/USA/CO /4 (Apr. 23, 2014), available at http:// justsecurity. org /wp- content/uploads /2014/03/UN- ICCPR- Concluding- Observations- USA.pd£ Page 1 of 3 An important step towards complying with the U.S. government's commitments and obligations is to widely disseminate treaty body recommendations, communicate how they relate to state and local policy, and provide guidance on practices that can address areas of concern. This type of proactive engagement will educate state and local officials on human rights standards and enhance our capacity to engage in activities that bolster human rights compliance. A number of federal agencies and officials are well - placed to effectively communicate the Committee's recommendations and give them meaning at the state and local level, including agencies with which state and local governments have prior relationships, such as the Department of Justice and others within the Equality Working Group. We further urge the United States to include a diverse delegation of state and local agencies and officials in all future treaty reviews, including the upcoming reviews of compliance with the International Convention on the Elimination of All Forms of Discrimination and the Convention Against Torture, as well as the Universal Periodic Review process. This will both strengthen the reviews and help to ensure that the resulting recommendations translate into positive domestic practice at the local level. In 2013, both the IAOHRA — the umbrella organization of state and local human rights agencies with a membership of approximately 160 agencies from across the country — and the U.S. Conference of Mayors, an organization representing cities of 30,000 or more, passed resolutions committing to promote and protect human rights locally. Yet, to implement human rights, the members of these organizations require federal support and guidance. By taking the steps outlined above, the United States will make important strides towards improving human rights implementation across the country, at every level of government. The federal government should further provide dedicated staff, education, training, and funding to help state, county and municipal governments fully comprehend and engage with the United States' human rights obligations. We stand ready to work in partnership with the federal government to help the U.S. meet its obligations to respect, protect and fulfill human rights for all. We look forward to working with you in these efforts and welcome the opportunity to discuss these recommendations further. Sincerely, [SIGN ONs] cc: Mary Mcleod, Principal Deputy Legal Adviser, Office of Legal Adviser, U.S. Department of State Page 2 of 3 1 Scott Busby, Deputy Assistant Secretary, Bureau of Democracy, Human Rights, and Labor, U.S. Department of State David Sullivan, Legal Adviser to U.S. Mission to the United Nations, U.S. Department of State Kathleen Hooke, Assistant Legal Advisor for Human Rights and Refugees, Office of the Legal Advisor, U.S. Department of State Dean Pittman, Assistant Secretary, International Organization Affairs, Department of State Jesse Tampio, Attorney- Adviser, Office of Human Rights & Refugees, U.S. Department of State Sue Biniaz, Deputy Legal Adviser, Office of the Legal Adviser Karen Stevens, Senior Counsel, Civil Rights Division, Department of Justice Page 3 of 3 tCOLUMBIA LAW SCHOOL HUMAN RIGHTS at HOME HUMAN R(GfITS INSTITUTE __ BACKGROUND INFORMATION ON THE U.S. AND HUMAN RIGHTS REVIEWS I. TREATY REVIEWS OF THE UNITED STATES The United States has ratified several major international human rights treaties: The International Covenant on Civil and Political Rights ( ICCPR), ratified in 1992, protects most traditional civil rights, including voting, speech, and religion; ■ The ICCPR includes protections for basic human rights such as the right to life and to human dignity, freedom of speech and association, freedom from torture and arbitrary detention, fair trial and minority rights. The ICCPR prohibits discrimination and guarantees equality before the law and equality between women and men. The Convention on the Elimination of All Forms of Racial Discrimination CERD ratified in 1994, protects against racial discrimination. ■ CERD prohibits discrimination in the areas including voting, education, health, housing, property, social security, and employment. It defines discrimination broadly to include laws with "the purpose or effect" of impairing enjoyment of human rights. It also calls on governments to take appropriate measures to review and eliminate laws that create or perpetuate discrimination. The Convention Against Torture (CAT)1 ratified in 1994. ■ The CAT requires measures to end acts of torture and criminalize them. It also calls for governments to prevent acts of cruel, inhuman and degrading treatment, and to investigate allegations of such treatment. Two Optional Protocols to the Convention on the Rights of Child, ratified in 2002: • The Optional Protocol on the Sale of Children, Child Prostitution and Child Pornography. This Protocol provides detailed requirements aimed at ending the sexual exploitation and abuse of children, as well as other forms of forced labor and illegal adoption. It further calls for legal and support services for children and international cooperation in efforts to end these abuses • The Optional Protocol on the Involvement of Children in Armed Conflict. This Protocol aims to limit the participation of those under 18 in recruitment and deployment and to provide basic protections to former child soldiers. For each treaty, there is a permanent United Nations body of experts charged with monitoring countries' compliance with human rights obligations in that treaty. Ratifying countries are required to periodically report to these monitoring bodies on their progress in meeting their human rights commitments under the treaty. Civil society also has an opportunity to provide an assessment of compliance with treaty obligations. Ultimately, the treaty body issues Concluding Observations, summarizing concerns and recommendations that the country under review should address. The U.S. will be reviewed for its progress implementing the CERD in August, 2014 and CAT in November, 2014. COLUMBIA LAW SCHOOL HUMAN RIGHTS at HOME AblIUMANRIGIITS INSTITUTE THE 2014 ICCPR REVIEW In March of 2014, the U.S. underwent a formal review of its compliance with the ICCPR. A delegation of U.S. federal agency representatives, as well as a mayor, state attorney general and local human rights agency representative traveled to Geneva to participate in the review and represent the United States. At the conclusion of the review, the U.N. expert Committee issued a number of conclusions and recommendations regarding the United States. These Concluding Observations touch on issues of federal, state and local concern, including racial profiling, gun violence, domestic violence, voting and homelessness. II. THE UNIVERSAL PERIODIC REVIEW ( "UPR") The United Nations Human Rights Council reviews the human rights records of all 193 United Nations Member States once every four years through the Universal Periodic Review ("UPR") process. This peer review process provides an opportunity for each country to discuss what actions it has taken to fulfill its human rights obligations and presents non - governmental organizations with an opportunity to advocate for greater protection or publicize human rights violations. The United States underwent its first UPR review in 2010 and will be reviewed again in 2015. The 2010 UPR resulted in 228 recommendations for ways in which the United States can improve human rights conditions domestically. Like recommendations from the ICCPR review, many of these recommendations relate to issues within state and local government jurisdiction, including employment, housing and criminal justice. The second review, next year, will focus on U.S. progress in implementing the recommendations from the 2010. For more information on ways that state and local governments can use human rights to advance local policy, visit the website for Columbia Law School's Human Rights Institute: http:/ /web. law.columbia.edu/ human - rights - institute /human- rights- us/treaty- im plementation /state- and - local -work MINUTES CITY OF EDINA MINNESOTA ENERGY & ENVIRONMENT COMMISSION EDINA CITY HALL COMMUNITY ROOM Thursday May 8, 2014 7:04 PM I. CALL TO ORDER 7:04p.m. II. ROLL CALL Answering Roll Call was Bale, Glahn, Gubrud, Kostuch, Latham, Rudnicki, Sokol, Thompson, Waddick, Zarrin, and Chair Heer. Absent: Howard Late Arrival: Sierks Staff Present: Ross Bintner and Rebecca Foster III. APPROVAL OF MEETING AGENDA Motion made by Member Latham and seconded by Member Gubrud to approve the Meeting Agenda. Motion carried unanimously. IV. ADOPTION OF CONSENT AGENDA A. Minutes. Member Latham on VI. E. fourth sentence from bottom add 'Based on the doctrine of sovereign immunity Commissioner Latham believes that, the City would not be liable, absent negligence on the City's part, " Member Latham removed "the" in VI. F. first sentence. Motion made by Member Thompson and seconded by Member Kostuch to approve the amended Minutes. Motion carried unanimously. B. Attendance report and roster. No Comment. C. Workgroup list and minutes. Chair Heer and Member Sokol suggested changing the Student Subcommittee to a Working Group to invite students attending secondary schools in Edina in environmental and energy clubs. By doing this the monthly reports will be more informative and help promote EEC event better. Motion made by Chair Heer and seconded by Member Thompson to form the Student Working Group. Motion carried unanimously. Motion made by Member Latham and seconded by Member Kostuch to approve the remaining Consent Agenda. Motion carried unanimously. V. COMMUNITY COMMENT. No Comment. VI. REPORTS AND RECOMMENDATIONS A. Minneapolis Sustainability Efforts. Gayle Prest, Sustainability Director for Minneapolis, gave an update on what they do. Minneapolis uses the St Paul Port Authority to approve Solar Panel projects. She reviewed the City's Climate Action Plan on how to reduce the City's citywide greenhouse gas emissions. They are tracking their greenhouse gas reduction through National Protocol for City's with ICLE. Gayle is proposing on how we can work better with Hennepin County due to lots of grants available. Member Sierks arrived at 7:34p.m. B. Burnsville Sustainability Efforts. Sue Bast, Environmental Specialist, for Burnsville. The City adopted Green Steps in 2009. A consultant was hired to educate the Burnsville Council members and City staff and devised a plan for the city that included educating staff, selecting a sustainability coordinator (part time role for existing employee) and a sustainability council with members from all City departments. The City has a sustainability checklist in the Planning Dept. Their Council has all staff working on goals. Burnsville said they are on track to meet 15% CO2 reduction in City Operations by 2015. C. Preparation and prioritization for June 3 CC /EEC Meeting. Chair Heer reviewed the draft Agenda for the City Council Work Session on June 3`d. The topics will be proposed ordinance changes to permit Bee and chicken - keeping, discuss EEC role in City's efforts to realize Comprehensive Plan Chapter 10 environmental commitments in the City's operation and an update on the Business Recycling. D. PACE Advisory. Member Sierks explained that St. Paul Port Authority will administer the PACE program instead of the EEC liaison. The City would need to enter a joint powers agreement with them. The only action required of the City would be to place a lien on the property, collect the money every six months and remit to SPPA. This will only be for Commercial property owners. Motion made by Member Sierks and seconded by Member Gubrud to send the PACE Advisory to Council. Motion carried unanimously. E. Local Food Working Group. Member Latham gave an update on the edits from the Police Dept. for the proposed ordinance changes to permit Bee and chicken- keeping. The Police Dept. need an annual renewal for safety in case an owner wants to discontinue the hive. Speak Up Edina had 32 residents participated in the bee and chicken keeping discussion with 100% support. The Police Dept. would like a $20 fee for bee keeping for mailings. The Police Dept. said there should be a better appeal process. VII. CORRESPONDENCE & PETITIONS A. Open Meeting Law Violation. Mr. Bintner reminded Commissioners that they can't email a majority due to the Open Meeting Law standards. Members Rudnicki excused himself from the meeting at 8:45p.m. VIII. CHAIR AND COMMISSION MEMBER COMMENTS A. Building Energy Efficiency Subcommittee. Member Sierks said the group learned how the City plans and designs energy projects. Each City building has different owners and budgets. Mr. Barnes has no authority or budget he can only make suggestions. There is a State program to help review the facilities on energy use. B. Business Recycling Working Group. Member Zarrin said there are five restaurants at 501h & France doing organic recycling. There is a passcode on the dumpster so that garbage won't be mixed with it. The Galleria and Southdale Shopping Center are the next goals to achieve. C. City Environmental Considerations Subcommittee. Members Kostuch and Heer meet with Eric Roggeman, Asst. Finance Director, and said Eric talked to City staff about adding the new sustainability form to the CIP by the end of May. Member Kostuch said City vehicles are not in CIP process as vehicles are replaced as needed by City departments via their individual budgets. D. Community Solar Subcommittee. Member Sierks said the next meeting will be a scoping meeting. The topics will be looking for potential sites for a solar project, for community solar do you want to contract the program and maintenance of the panels, discuss bidding requirements and does the City want more than one site. E. Education Outreach Working Group. Member Thompson thanked all the volunteers that helped with the April 28th event. There were 110 attendees. The movie "Bag It" will be held on May 16th. The July 4th parade theme is "Deeper Shade of Green ". F. Home Energy Squad Subcommittee. Member Gubrud said there are nine discounted visits left. G. Recycling and Solid Waste Working Group. No update. H. Student Subcommittee. Member Sokol said Project Earth raised $700 of the $6200 needed for the solar charging station. There was a charging station installed at the Media Center, but it's not solar, so maybe the cost will be lower through a conversion. I. Water Quality Working Group. Member Waddick said the group is trying to figure out what they are doing. She hopes to focus on Storm Drains and runoff. She visited the City of Minneapolis to review their Storm stenciling kits. Nine Mile Creek Watershed will let the group know what areas of the city are left to stencil or be refreshed. Water Bottle Advisory. Member Zarrin gave an update on the profit of the City's water bottle sales. The EEC is encouraging the City to reduce its water bottle sales and install hydrations stations. The high school has five hydration stations. Motion made by Member Latham and seconded by Member Waddick to accept two changes and forward the advisory to Council. Roll Call was taken: Ayes: Gubrud, Latham, Sierks, Thompson, Waddick, Zarrin and Chair Heer. Nays: Glahn, Kostuch Absent: Howard, Rudnicki Motion Carried. K. 2014 EEC Summary and Schedule. Mr. Bintner said he'll plan an August infrastructure tour again. IX. STAFF COMMENTS A. Council Communications. Mr. Bintner reviewed the "Communications with the City Council" for Boards and Commissions. B. EEC Budget Summary. Mr. Bintner will bring EEC Budget Summary to June meeting. C. City Projects, No Comments. There being no further business on the Commission Agenda, Chair Heer declared the meeting adjourned at 9:46 p.m. Motion made by Member Thompson and seconded by Member Zarrin to adjourn meeting. Motion carried unanimously. Respectfully submitted, Rebecca Foster GIS Administrator 4 EDINA COMMUNITY HEALTH COMMISSION CITY OF EDINA MAYOR'S CONFERENCE ROOM, EDINA CITY HALL TUESDAY, MAY 6, 2014 6:30 PM CALL TO ORDER The meeting was called to order at 6:31 p.m. II. ROLL CALL Answering roll call members were Melinda Bothun - Hurley, Kristen Connor, Tone Deinema, Nadia Martyn, Ginny Ogle, Alison Pence, Michael Sackett, Joel Stegner, Staff Liaison Jeff Brown and guest MJ Lamon. Absent were members Kumar Belani, Matt Doscotch and Student Member Aditya Mittal. New member, Ginny Ogle, introduced herself to the Commission members. MJ Lamon explained her role with the City. Vice Chair Stegner (acting as Chair) reviewed the attendance policy. The June Meeting will count as two meetings since there is a Council work session with a regular meeting to follow. Guest Lamon explained that a total of 4 nonconsecutive meetings per year or 3 consecutive meetings missed will result in the member being removed from the Commission. III. APPROVAL OF MEETING AGENDA The motion to approve the Agenda was made by Member Pence. The motion was seconded by Member Connor. All voted aye. Motion carried. IV. ADOPTION OF CONSENT AGENDA A. Approval of March Minutes The motion to approve the March Minutes was made by Member Martyn. The motion was seconded by Member Pence. All said aye. The motion carried. IV. COMMUNITY COMMENT None. VI. REPORTS /RECOMMNDATIONS A. Annual Election of Officers (Terms beginning at June meeting) Elections were discussed as Chair Doscotch's term has come to an end. Member Sackett nominated Member Stegner for Chair. Member Pence volunteered for Chair. Member Bothun - Hurley volunteered for Vice Chair. Member Stegner withdrew his nomination. Member Stegner motioned to approve the appointment of Member Pence as Chair and Member Bothun - Hurley as Vice Chair. Member Sackett seconded the motion. All said aye. The motion carried. New appointments will be effective at the June meeting. B. Electronic Cigarettes /Vapor Lounges (Member Conner, Legislation Update; Consider Adoption of the City Clean Air Ordinance; Discuss Status of Scientific Literature; Recommendation to Council) Member Conner explained legislation in the House and Senate is moving forward with voting taking place at the end of the week. The Senate bill has language to include e- cigarettes, sales to minor users and inclusion in the Clean Air Act. The less restrictive House bill does not include the Clean Air Act piece but does address sales to minors. The bill regarding sales to minors is likely to pass but inclusion in the Clean Air Act may not. This puts the Commission in a position to make recommendations to the Council regarding the City Ordinance. Member Martyn recently attended an Edina Chemical Health Partners meeting and heard a presentation about e- cigarettes organized by ANSR, the Association for Nonsmokers - Minnesota. ANSR is available to attend a Commission meeting. Member Conner proposed that an ordinance be drafted but not presented until legislative session ends so that it can be adjusted if necessary. Member Bothun - Hurley suggested that draft resolutions be put in order to get something to the council right away as the session ends May 19. The Commission should be proactive and bring something to the Council before being asked. Acting Chair Stegner inquired about whether the group agreed with Member Connor. Member Sackett suggested it be less restrictive so that business could make its own decision. Member Pence suggested it be restrictive as it might get loosened with revisions. Member Bothun - Hurley said from the health perspective, the bar should be set high. Staff Liaison Brown said that Bloomington's Advisory committee is presenting their proposal on June 6. Member Bothun- Hurley motioned that Member Connor take the lead and the Adult Subcommittee work on the draft. Member Sackett seconded the motion. All said aye. The motion carried. A draft will be circulated before the next meeting. It was suggested that a list of cities that have already taken action be included. C. Minnesota Anti - Bullying Legislation (Member Sackett) Safe and Supportive Schools Act 2014 -2015 Bullying includes off campus electronic posts. Smaller districts are not in favor as they consider it to be an unfunded mandate. The Chemical Health Group has been dealing with the bullying issue. Member Martyn will ask Chair Doscotch to get information from that group about how big of an issue this is in Edina. D. Status Update on Grandview Development (Staff Brown) The Development Group is struggling to agree on how to decide how the property is to be used. There is still time for the Commission to have input on the land use. Member Bothun - Hurley shared an e-mail from Chair Doscotch. "The CHC has voiced its concern that, and expectation for, the City to consider the Health of the community in making decisions on the use of the site. The CHC believes consideration should be given to the use of the site that promotes the physical, mental, and social well -being of those that live and work in Edina. A Health in All Policies approach. One possible site use is something that supports fitness and also has a multi -use component such as rooms to rent for events or space dedicated the arts (may support any one of the physical, mental, and social - wellbeing of residents). With regard to Seniors, The Senior Center is a block away and provides easier access to fitness activities (particularly during the winter, when activity levels can be influenced by weather) rather than the sites located throughout the City that require additional travel (e.g., traveling to Edinborough Park for swimming activities at a facility that is not comparable to other City run pools). Also, access can be hampered by cost. Other city fitness centers appear to offer fitness opportunities at a lower cost, particularly for seniors, than private clubs. The goal is to get this information into the minutes so the City Council understands our request that Health be considered and potentially relevant points regarding the same." Member Conner recommended that the Commission work to be involved in the planning process. A plan will be formulated at a future time. E. 2014 Work Plan and Subgroup Health Improvement Opportunities (HIOs) Progress Update i. Communications: Member Stegner Subgroup members are Member Stegner and Chair Doscotch. They have been reviewing the website for accuracy. Currently the Commission Chair is not listed correctly. The member photo is out of date. It was suggested that a new group photo be taken at the June meeting and again in September. Each Subgroup should think about what to resources to include on the site. ii. Youth: Member Martyn (includes Edina Chemical Health Partners Update). Subgroup members are Martyn, Ogle, Sackett. Chair Doscotch has also been attending the meetings. It should be noted that the students should attend depending upon availability. Chemical Health Partners update — Life of the Athlete student group approached the Boosters for funding. The Boosters will be voting on it. Good Samaritan Law —the group was responsive to it being positive. Social Host Ordinance— if parents are not physically in the home, it is difficult to include them in the current statute. See what other comparable cities have done for their ordinance and sent the information to Member Martyn. Chaska, Shakopee, Lakeville have statutes that work. Do we need stricter penalties? Edina ordinance is from 1970. It is still used to enforce. Get permission in June from the Council to work on it. Law enforcement support is important. Possibility is to invite the Chief to a meeting. It seems that the best way to approach binge drinking is through the parents. Communication in a parent newsletter — write an article about student health and student survey — positive and negative — in September. r iii. General /Senior: Member Hurley Subgroup members are Connor, Bothun - Hurley, Pence and Belani. The group has a brainstorming session on ways to address adult /senior health. F. City Mission and Vision Update (Member Pence: update and discuss potential approaches to health in all policies (as applicable, inclusion of health concepts in each City vision objective), consider alternatives of creating a separate vision statement on health or incorporation of concepts of health throughout the document to further health in all policies objective). Member Pence discussed how the Commission was tasked with updating the Mission /Vision Statement to incorporate Health in All Policies for Vision 20/20. It is a working document. The Council received the proposal from the CHC on August 9, 2013 but has not yet adopted any of the recommendations. It can be addressed at the June Council meeting. G. Develop Agenda of Items to Discuss with Council at June Work Session (potential topics to address, assignment of responsibilities, and preparation for meeting) Council Meeting Agenda Items — Shift toward public education Student survey Social Host Ordinance E- cigarettes Grandview Health in All Policies VII. CORRESPONDENCE None. VIII. CHAIR AND COMMISSION MEMBER COMMENTS Member Pence shared that Bloomington SHIP has hired a new coordinator. Bloomington Health Department's new director starts at the end of the month. The SHIP RFP is to work on sugar sweetened beverages with different ethnic communities. Edina Community Ed received a grant for Act on Alzheimer's. The goal is to set up dementia friendly community. Staff Liaison Brown shared that a new field inspector (Environmental Health Specialist) has been hired for the Health Department. Guest Lamon spoke about the Heritage Preservation Board's Advisor blog. The Commission could assist with responsibilities. There is a requirement of one post per week but split among four or five boards, it would only be about every 6 weeks. Commissions are required to have a contact person. A staff person (Staff Liaison Brown) needs to vet it for content and then it goes to communications. The Commission has expressed an interest in being included. The Commission needs to decide on a topic for the first post as soon as possible. Staff Liaison Brown will be responsible for making sure it meets guidelines. Guidelines for the blog are being developed and will be distributed by Staff Liaison Brown. First blog could be an introduction to the group. Regarding anti - bullying, Guest Lamon shared that the HRC has anti - bullying on their work plan. This is a cross -over area. It is possible for groups to partner for events, etc. Subgroups should meet before the next meeting if possible. X. Adjournment Motion to adjourn was made by Member Martyn. Member Pence seconded the motion. All voted aye. The meeting was adjourned at 8:14 p.m. COMMUNITY HEALTH COMMITTEE NAME TERM IJI F M A M J I J I A I S 1 O 1 N I D I Work Session Work Session # of Mtgs. Attendance % Meetings/Work Sessions : 1 1 1 1 1 1 1 7 Bothun - Hurley, Melinda 2/1/2017 1 1 1 1 1 61312014 1 (enter date) 6 86% Belani, Kumar 2/1/2016 1 1 1 3 43% Doscotch, Matt 2/1/2016 1 1 1 1 1 1 6 86% Martyn, Nadia 2/1/2015 1 1 1 1 1 1 1 7 100% Conner, Kristen 2/1/20151 1 1 1 1 1 1 1 1 1 7 100% Ogle, Virginia 2/1/20171 1 1 1 1 1 4 57% Sackett, Michael 2/1/20171 1 1 1 1 1 1 5 71% Stegner, Joel 2/1/2016 1 1 1 1 1 1 1 7 100% Pence, Alison 2/1/2017 1 1 1 1 1 1 6 86% Deinema, Tone Student 1 1 1 1 1 5 71% Mittal, Aditya Student 1 1 1 1 1 1 1 1 6 86% Liaisons: Report attendance monthly and attach this report to the Commission minutes for the packet. Do not enter numbers into the last two columns. Meeting numbers & attendance percentages will calculate automatically. INSTRUCTIONS: Counted as Meeting Held (ON MEETINGS' LINE) Attendance Recorded (ON MEMBER'S LINE) ular Meeting w /Quorum Type "l " under the month on the meetings' line. Type "1" under the month for each attending member. Regular Meeting w/o Quorum Type "1" under the month on the meetings' line. Type "1" under the month for each attending member. Joint Work Session Type "1" under "Work Session" on the meetings' line. Type "I" under "Work Session" for each attending member. Rescheduled Meeting` Type "1" under the month on the meetings' line. Type "l under the month for each attending member. Cancelled Meeting Type "1" under the month on the meetings' line. Type "1" under the month for ALL members. Special Meeting There is no number typed on the meetings' line. There is no number typed on the members' lines. 'A rescheduled meeting occurs when members are notified of a new meeting date /time at a prior meeting. If shorter notice is given, the previously - scheduled meeting is considered to have been cancelled and replaced with a special meeting. MINUTES OF THE REGULAR MEETING OF THE VETERANS MEMORIAL COMMITTEE HELD AT CITY HALL APRIL 18, 2014 7:30 AM 1. CALL TO ORDER Chairman Olson called the meeting to order at 7:35 am 11. ROLLCALL Answering roll call were Members Benson, Cardarelle, Christiaansen, Crain, Currie, Elliott, Olson, Reed, and Schwartz. Members Absent: Member Kojetin. Staff in attendance: Kristin Aarsvold, Edina Park and Recreation Department Supervisor. Others in attendance: None. Ill. APPROVAL OF MEETING AGENDA The agenda was approved as presented. IV. ADOPTION OF CONSENT AGENDA A. Approval of the March 21, 2014 Veterans Memorial Committee Meeting Minutes. Schwartz referenced a motion that he made and advised that Member Kojetin was the second for that motion. Motion by Member Reed and seconded by Member Cardarelle to approve the meeting minutes from the March 21, 2014 meeting as amended. Ayes: Benson, Cardarelle, Christiaansen, Crain, Currie, Elliott, Olson, Reed, and Schwartz. Motion carried. V. COMMUNITY COMMENT There were no members of the general public present at the meeting. Vl. UPDATE ON MEMORIAL SCULPTURE Member Benson advised of an upcoming date for the local Edina television station to shoot footage that could be used for publicity purposes. Member Reed explained that the sculpture will be completed in phases and the television station is willing to shoot the different stages. Chair Olson noted that perhaps when the Members are at the sculptor they could take some still photos as well. V/l. OVERALL DESIGN DISCUSSION Member Elliott referenced the bonding bill and advised that the City Council has to see proof of full funding available before approval to move forward will be given. He reviewed the proposed timeline for construction to begin, should all the items fall into line for the funding. Chairman Olson confirmed that $225,000 was requested in the bonding bill. He stated that the Committee will either get the funds or will not through the bonding but advised that he has heard positive comments and the request is moving along. He reviewed the funds raised thus far. Member Elliott noted that if the bonding is not received the Committee would need to raise an additional $125,000 before construction could begin. He also referred to the design elements and noted that originally the Committee had planned specific types of recognition for large donors but advised that only one large donor has come forward. He questioned the type of recognition that smaller donors would receive. He wanted to ensure that the recognition of donors was well thought out and planned in order to be fair and consistent. Member Reed noted that there is sufficient space on the pillars that could be used to engrave names of donors and advised that larger donors could be identified with different types, and /or size, of font. He did not want to see engraving on too many items as he believed that would take away from the aesthetic. Member Crain stated that one pillar could have company names, as in those that provide in -kind services, and another pillar could be used to recognize resident donors. He stated that if someone wished to sponsor a bench, engraving could occur on the bench for that donor. Member Elliott explained that he would just want to ensure fairness for those that donated. Member Currie stated that perhaps an online living book could be created to recognize the donors. He advised that the donors could be recognized on gold, silver, and bronze levels. Chairman Olson stated that prior to the next meeting he will draft a proposed policy for the naming rights and donor recognition. Member Elliott believed that the Committee should further consider the criteria of the donations that will provide the naming rights. He advised that currently the naming right for a bench is set at $50,000, which may be too high. Member Crain did not believe that the cost should be lowered less than $10,000 for the naming rights for the bench. Member Christiaansen stated that perhaps the donors on the list should be contacted to determine if they would be interested in naming rights. Member Elliott referenced the design for the medallions and advised that at the previous meeting, five services were proposed for recognition, there was discussion on whether to include the Merchant Marine. Member Elliott asked for clarification. Member Schwartz stated that he initially pushed to include the Merchant Marine but explained that during WWII that section became a part of the Navy and therefore are recognized. He advised that the Committee did vote not to include the Merchant Marine separately as they become a part of the Navy during times of war. Motion by Member Reed and seconded by Member Benson to reconfirm inclusion of five service insignia including the Army, Navy, Marines, Cost Guard, and Air Force. Ayes: Benson, Cardarelle, Christiaansen, Crain, Currie, Elliott, Olson, Reed, and Schwartz. Motion carried. Member Elliott stated that he has been working with the Watershed and believed that a site visit will occur the following week, weather permitting. He advised that notification of residents within 600 feet of the project site will need to occur. Member Cardarelle noted that he has been providing contact information for Member Elliott to the in -kind vendors. M. FUNDRAISING Chairman Olson provided an update on recent fundraising contacts and efforts. He noted that once the in -kind donations are determined the final amount needed for fundraising will be better known. Member Currie again referenced the idea of a website that could be used to create a living website that could recognize donors. He explained that donors could have the ability to post a story about their loved one they donated in memory of. Member Benson questioned the cost to create and manage a website. Ms. Aarsvold stated that perhaps this would be the time to speak with the Edina Community Foundation to determine how they could help with a website. She noted that she could also speak with the City Communications Department. The Committee also discussed possible fundraising leads. Member Elliott confirmed that if the construction begins in July there should not be a problem completing the project this year. He explained that construction cannot begin before the funds are secured. He also advised that Dick Crockett would like to speak about the project at the July 3 d Veteran's dinner. IX. MARKETING No report. X. ADJOURNMENT Meeting adjourned at 8:30 a.m. MINUTES OF CITY OF EDINA, MINNESOTA TRANSPORTATION COMMISSION COMMUNITY ROOM MAY 15, 2014 6:00 P.M. ROLL CALL Answering roll call were members Bass, Boettge, lyer, Janovy, La Force, Nelson, Olson, Sierks, Spanhake, and Whited. ABSENT Member Van Dyke. APPROVAL OF MEETING AGENDA Motion was made by member LaForce and seconded by member Nelson to approve the meeting agenda. All voted aye. Motion carried. APPROVAL OF MEETING MIN REGULAR MEETING OF APRIL 17, 2014 — Approved as corrected. Motion was made by member Nelson and seconded by member Boettge to approve the amended minutes of April 17, 2014. All voted aye. Motion carried. COMMUNITY COMMENT Mr. Art Thelemann, 5132 Valley View Road, said he had crash analysis that indicated that the proposed Birchcrest B sidewalk would send pedestrians through three crash zones. Instead of this sidewalk, he proposed the Birchcrest Multi -Use Trail from Benton Avenue to Tracy Avenue connecting to Nine Mile Creek Trail when constructed and connecting to the Wyman Avenue Bridge over TH -62 to W. 63`d Street. Along Normandale Road between Benton Avenue and the church, he suggested constructing the sidewalk along the east side instead of the west side. Suggested construction schedule is 2017 in conjunction with the Birchcrest C Neighorhood Reconstruction and financing would be from PACS fund reserves over 2015, 2016 and 2017. Mr. Thelemann said city engineer Millner has some concerns with the multi -use trail. REPORTS /RECOMMENDATIONS Discussion with Edina Police Department Chair Bass thanked Chief Nelson for meeting with them. She said the ETC have always talked about the importance of a partnership with the Police Department and asked what the department's priorities are for 2014. Chief Nelson introduced himself as a 23 -year employee who has held various positions. He said in his most recent position as deputy- chief, his primary focus was staffing needs and since becoming chief, this continued to be his primary focus as he worked to fill the position he vacated, plus hiring seven officers because of retirements. He said he is learning about the various boards and commissions and have met with a couple of them so far. As it relates to transportation and traffic, Chief Nelson said they are working on the following: 1. Teaching bike safety to students; 2. Bike patrol at the Promenade, Centennial Lakes and other parks beginning Memorial weekend (sponsored by the Crime Funds); 3. Teaching teen driving rules at the high school (sponsored by AAA); 4. Sending an officer for Q &A session at the AAA driving school (partnership with St. Louis Park); 5. Focus -In topic for May is Bike Safety; VW 6. Focus -In topic for June will be Share - the -Road campaign (flyers /brochures will be distributed throughout the community). Chief Nelson said he's heard about the Active Routes to School (ARTS) plan but is not yet familiar with it. Chair Bass said as part of the ETC's work plan, they are working to develop a culture and respect for all modes of transportation and the ARTS plan include an educational campaign component with funds from a grant. She noted that the ETC's and Police's efforts were very similar and asked how they could work together to deliver these messages. She asked about the curriculum that they are using the in the schools and their share - the -road campaign. Chief Nelson said the school curriculum was prepared by Sgt. Olson and he is not sure where it came from. Chair Bass said the school district has a new curriculum from MNDOT that will be piloted through Community Education (Walk! Bike! Fun!). She also noted that Bike Edina has a history of doing Bike Rodeos and that it would be good to team up. Member Olson said the Police are usually involved with the rodeos. Continuing, chair Bass said the Traffic Safety Reports shows recurring issues of speeding and stop sign violations and these were reinforced in the most recent Quality of Life survey. She said the ETC would like to develop a more satisfactory response like traffic calming, for example, and asked if there are other tools that might be helpful like administrative citations. Chief Nelson said they've discussed the use of administrative citations and the City would benefit because it would keep more of the revenue but Hennepin County does not support this because it would reduce their budget. He said City Code could allow this but there is a strong recommendation against it. In reference to speeding and writing tickets, Chief Nelson said they do not write tickets for 5 mph over the speed limit for various reasons — the volume of traffic; it is not considered a safety hazard on most streets; there is a margin of error on their radar guns and contesting these tickets in court is time consuming and expensive. Member Whited said the intersection at 60th & Chowen has been a problem for some time now and there was a police presence in the mornings but she has not seen one for a while. She asked what can be done to calm the situation and prevent people from yelling at each other. Chief Nelson said when they receive complaints they assign off -duty officers to the locations and data is collected. 601h & Chowen will be added to the complaint list and the data will be available. Chair Bass said they could provide a more satisfactory response if they could coordinate a cohesive process of enforcement, engineering, etc. Member Janovy asked if the data that they collect is transferred to the Engineering Department and the Chief said no; he said it is only a snapshot and may not be justified. Member Janovy said the information could be valuable for planning and effecting changes. Chief Nelson explained that they have a $20,000 budget specifically for complaint areas where they assign off -duty officers (begins in the spring until funds are gone) and asked if the data they collect would benefit Engineering. Planner Nolan said oftentimes residents are requesting assistance from both Engineering and Police for the same issue so having the data would be helpful. Member Boettge said the Police was responsive to her call for traffic calming at 70th but hearing the frustration and fear and knowing that up to 5 mph over the speed limit is okay, she wondered if they are attacking the problem at the wrong level and asked if there was anything the ETC could do. Member Janovy said MNDOT tried reducing the speed limit to 25 mph but it would have been a burden on small communities to replace their signs so they were not successful. Member lyer asked if they were using technology that could replace posting officers. Chief Nelson said they are not using technology that would replace posting officers in part because of the experiences of City of Minneapolis and others not being able to prove their case in court when violations are captured by cameras. Additionally, he said mounted speed cameras are not calibrated regularly like radar guns in squad cars that are calibrated at the beginning of each shift. Member lyer said it could be used as a deterrent. Chief Nelson said they have one radar trailer that cost approximately $11,000 and it is placed based on complaints. Planner Nolan was asked if the PACS fund could buy another trailer and he said it is possible but this would not be on his short list of priorities. 2 Chair Bass explained that they are working on developing implementation strategies for the Living Street Policy which directs the City to consider the needs of all users and better manage the environment. They are also working on the ARTS plan and the primary focus is encouraging walking and biking to school where it is safe and making it safe where it is not. She said the biking on sidewalk ordinance re- emerged because of the ARTS plan and feedback from the high school student council was that they would bike to school but they knew it was illegal to bike on the sidewalk and their parents would not allow them to bike in the street. Additionally, she said a parent survey showed school speed zone and enforcement as a concern and parents' perception was that enforcement was irregular. Chief Nelson said their regular enforcements are at the beginning of the school year and again in the spring after the snow melts; otherwise enforcement is complaint driven. Chair Bass said they are developing a pedestrian plan and prioritizing where sidewalks are built and said this would also be a good opportunity for them to collaborate. Member Janovy asked if is pedestrians is a theme in their monthly Focus -In program. She said oftentimes pedestrians walking /running at nights without reflectors, not using sidewalk, etc. and asked if these behaviors are enforced. Chief Nelson said no and he said as an officer on patrol probably would not be looking for a pedestrian running /walking in the street and this would not cross his mind as being dangerous. Member Whited suggested using the "Friendly Reminder" section in About Town to remind everyone how to behave as pedestrians. Regarding enforcement, Chief Nelson said if they cite someone for operating their bike carelessly on the sidewalk, it is a misdemeanor, jail -able offense with a $1,000 fine and it impacts their driver's license, even if they are not yet old enough to drive, and their insurance rate. He said one year they cracked down on bikers not stopping at stop signs and received numerous complaints because of the impact and possibly losing their driver's license while biking and, it was time consuming going to court. After realizing the impact, they decided to write citations under a different statute that allows them to enforce the behavior but not impact their driver's license and insurance rate. Chair Bass said this underscored the need to modify behavior and teaming up to reinforce messages through multiple channels. Chief Nelson asked how would the ETC get their messages out and chair Bass said they are still working on this but there are several models around the country. She said it could leverage many city communications channels, including social media, website, publications, the signboard outside city hall, cable access and working with community partners. The ETC thanked Chief Nelson for visiting with them and he likewise thanked them for the invitation. Citywide Crosswalk Standards Planner Nolan said the ARTS plan recommended creating standards for crosswalks and the City Council directed staff to create the standards. He said staff is recommending the enhanced, high visibility Continental pattern that the City currently uses most often for regular crosswalks and in school zones the Ladder -type for more emphasis. There are also specialty crosswalks like the ones in the 50th & France District and Duratherm next to City Hall on W. 50th which is being phased out. The recommended crosswalk marking materials are latex paint and thermoplastic. Thermoplastic application requires specialty equipment that would be purchased using PACS fund and Public Works staff would do annual maintenance. Chair Bass asked whether staff had considered evaluating other types of specialty sidewalks or if staff had discussed a plan for phasing them out or replacing them as -is. During discussion, planner Nolan said when to use latex vs. thermoplastic is still to be determined and he is not sure if they would change out specialty crosswalks like the ones at 50th & France for another design. Motion was made by member LaForce and seconded by member Whited to accept staff's recommendation. All voted aye. Motion carried. 3 Olinger Boulevard Mill and Overlay Project Planner Nolan said Olinger Boulevard from Vernon Avenue to Tracy Avenue is scheduled for a mill and overlay this summer and staff is planning on adding bike treatment as it is listed as a primary bike route. Residents were invited to a meeting and they were generally supportive of bike treatment (i.e. sharrows) but would like to keep the existing on- street parking. The existing width of the roadway will not accommodate dedicated bike lanes on both sides with parking, so to maintain parking staff is proposing a combination of treatments that will include dedicated bike lanes and shared -lane (sharrow) markings. A variance would be required from MNDOT's Municipal State Aid for a 13 -ft lane instead of the required 14 -ft lane. Member Nelson expressed concerns with the combined treatments and said the road does not seem to have a lot of traffic and drivers are probably not going fast because of the configuration of the road. He suggested striping a fog line for parking, adding a centerline and eliminating the dedicated bike lanes to reduce the combination of treatments. Another suggestion by member Nelson was to use the park's path and planner Nolan said staff discussed this but decided against it because the users of the park path are different than those using on- street facilities (and recently, the Park Board voted to change the path to two -way in anticipation of the Nine Mile Creek trail). Member Janovy asked about ADT data and if the centerline is necessary. Planner Nolan said they are currently collecting data because they wanted to include the traffic associated with the new senior housing complex and he estimated the traffic count to be 1,500- 2,000. Member Janovy said she is becoming more in favor of a naked street where everyone figures out their own space based partially on her observation of W. 44th Street which is functioning well. Without knowing traffic volume, she does not believe the bike lane is needed and does not like mixing treatments. Member lyer concurred on the mixing of treatments and member La Force added that he too is in more in favor of a naked street. Member Spanhake suggested sharrows the entire length of the roadway. She said adding markings will help the community to recognize biking and she supports the continued use of Edina's Comprehensive Bicycle Plan. Member Olson agreed that the markings reinforce the message and prefers staff's recommended bike lanes. Chair Bass added that it would be helpful to communicate to bikers that there is a place for them and that it is not only about traffic volume but also bike volume, with Bredesen Park being right there. Motion was made by member Nelson and seconded by member Janovy recommending use of consistent sharrow markings and /or signs the entire length of the roadway and parking bay as recommended by staff. Aye: Bass, Boettge, lyer, Janovy, La Force, Nelson, Spanhake, and Whited. Naye: Olson. Motion carried. Member lyer asked for clarification on the variance and planner Nolan said the ETC's motion does not require a variance. Xerxes Avenue Bump- Outs /Lane Configuration — Minnehaha Creek to TH62 Planner Nolan said Hennepin County has proposed installing permanent bump -outs when they do their mill and overlay project. The bump -outs would be from the creek to TH62 and lane configuration over the bridge would remain as is. He said area residents and City of Minneapolis are supportive while commuters prefer a 4 -lane roadway. Area residents wanted something more aesthetically pleasing but it could not be done at this time because it is not a reconstruction project. Staff recommended approval and after discussion, the ETC concurred. Traffic Safety Committee Report of May 7, 2014 A -1: Planner Nolan was asked if they have the authority to say "no truck traffic" and he said it is a fuzzy area but they can ask SuperValu to direct their drivers to a certain route; the illustration will be rotated. On page 7, the report does not say who failed to yield because the information is not available. Motion was made by member Janovy and seconded by member Whited to forward the corrected May 7, 2014 report to the City Council. All voted aye. Motion carried. Updates Student Members - None Bike Edina Working Group — Minutes of April 10, 2014 Member Janovy said Edina received a Bicycle Friendly Community bronze award from The League of American Bicyclists for its Bike Plan (only Minnesota community to be awarded) and on June 3 there will be an official presentation at the City Council meeting. Living Streets Working Group The working group met May 7 and revised the design guideline chapter, discussed how to communicate the benefits of Living Streets and reviewed the revised pedestrian plan. Communications Committee Member LaForce said they are regrouping and revisiting past and current recommendations were made that they've made for the ETC, transportation, bike resource, City's website, etc. CORRESPONDENCE AND PETITIONS - Letter from resident Marena Arbelig The ETC discussed Ms. Arbelig's letter and the consensus was that it was nice to receive positive feedback and confirmation that the issues that they are working on matter to residents. A suggestion was to feature residents talking about getting around the community similar to the Hometown Heroes that are featured on the City's website. Member Whited will draft a response to Ms. Arbelig and member Boettge will review. Chair Bass asked for feedback regarding what to do with Mr. Thelemann's proposal. Planner Nolan was asked for staff's feedback since the proposal was shared with staff and he said staff did not see the issues in the same way as Mr. Thelemann. He said it seemed more like residents are wanting a sidewalk but not along their property. In reference to the crash data, planner Nolan said which side the sidewalk is on did not matter and other issues such as MNDOT land, and redesigning the roadway makes it not feasible, and there are funding issues. Member Janovy wondered if there was a gap in the ETC's, Engineering's and Mr. Thelemann's communication. Member LaForce said he liked the connections in the proposal but would prefer not to walk along the freeway and he wondered what the motivation was because Mr. Thelemann was not in favor of the Birchcrest B sidewalk. Member Nelson said there is logic in his proposal with the connections. Planner Nolan said it was too late to fit this in because construction is starting next month. They discussed how to respond and if they should respond directly to Mr. Thelemann and decided that thanking him directly for his comments and their feedback in the minutes would suffice. CHAIR AND COMMISSION MEMBER COMMENTS Member Spanhake invited the ETC to attend the Center for Transportation Study Research Conference next week and planner Nolan said he is scheduled to attend. She said she is interested in identifying a consistent protocol for using signs vs. and using data to decide which one to use. Member lyer said similar to standardizing crosswalks, they need to do the same for bike signs and have one or three at the most, for uniformity. He asked if Bike Edina would be interested in working on this. Member Nelson said member Janovy was acknowledged by the City Council recently for her volunteer work and he and member Whited presented her with a plaque and a gift card on behalf of the ETC. 5 Member Janovy thanked the ETC for the recognition and gift. She said she was glad to have Chief Nelson and would like to follow up with him on the following: 1. Bike Safety Training Curriculum; 2. Share - The -Road Campaign (What is their handout? Why isn't it coordinated with the Communications and Engineering Departments); 3. Administrative Citations (see why Hennepin County is against this); 4. , Writing citations. She said it is City policy to make the city friendly to all transportation modes and this will require everyone participating. Member Whited asked what work was being done at 60th & France. Planner Nolan was not sure but will check and follow up. Member Nelson said the street in front of his property has been coned off since the winter melt because there was about 1 %2 -ft. of standing water and asked when it would be repaired. Planner Nolan will check with Public Works. Chair Bass asked if the Police was involved with the Living Streets staff advisory group and planner Nolan said yes. She said they should continue to think about ways to engage with the Police. She said she met recently with Sgt. Olson and discussed the biking on sidewalk ordinance. She said there are some opportunity to talk about agreement such as children riding on the sidewalk (did not discuss an age limit) and certain roadways where everyone feels uncomfortable riding in the road. She said they may be revisiting the ordinance again and given other areas of interest that are common to the ETC and Police, it would be worthwhile to meet again. STAFF COMMENTS • 2014 Project Update — Bredesen Park D, Countryside F and Strachauer Park B Neighborhood Roadway Reconstruction projects have all started. Morningside B and Todd Park F are scheduled for later start dates; although the contractor may start on the sidewalk that is outside of the roadway project in Morningside B sooner. • 2015 Projects — project maps were distributed for discussion at a future date and also meet new assistant city engineer Patrick Wrase. • France Avenue — curb and gutter is almost complete; temporary traffic signal is set up at 70th; • Hazelton Road round -about construction started this week; the intersection will be completed the same as the others on France Avenue. • iLegislate — allows members to access meeting reports online using an iPad and reduce paper copies; two members are currently using it; feedback was some still like to receive paper copies; reports are posted on City's website and suggestion was to email the link so members could get use to accessing the reports electronically, continue to send paper copies and revisit this at a later date. • Boards and Commissions blog was started and five are currently participating; blogging would be weekly by one group; communications committee agreed to discuss ETC's involvement. ADJOURNMENT Meeting adjourned. Cei ATTENDANCE TRANSPORTATION COMMISSION ATTENDANCE - 2014 NAME TERM J F * M A M J J A S O N D SM S M s0 W # of 3/S18 Mtgs Attendance % Meetings/Work Sessions 1 1 1 1 1 0 0 1 6 Bass, Katherine 2/1/2014 1 1 1 1 1 5 83% Boett e, Emil 2/1/2014 1 1 1 1 1 1 6 100% I er, Su rya 2/1/2015 1 1 1 1 1 1 6 100 %e Janov , Jennifer 2/1/2014 1 1 1 1 1 1 6 100% LaForce, Tom 2/1/2015 1 1 1 1 1 1 6 100% Nelson, Paul 2/1/2016 1 1 1 1 1 1 6 100% Olson, Larry 2/1/2016 1 1 1 1 4 100% Sierks, Caroline student 1 1 1 3 50% S anhake, Dawn 2/1/2016 1 1 1 3 75% Van Dyke, Jackson student 1 1 2 33% Whited, Courtney 2/1/2015 1 1 1 1 4 67% "Cancelled due to weather submitted, iSroCison, Secretary Edina Arts and Culture Commission Meeting Meeting Minutes City of Edina, Minnesota Edina City Hall Community Room April 24, 2014 4:30 P.M. I. Call to Order Mr. Bouassida called the meeting to order at 4:32 p.m. II. Roll Call Commissioners Present: Hafed Bouassida, Kandace Ellis, Dana Lappin, Barbara La Valleur, Ray Meifert, Anne Miller, Kitty O'Dea, Paul Peterson, and Thomas Raeuchle. Commissioners Absent: None. Staff Present: Michael Frey, General Manager, Edina Art Center. Student Commissioners Present: Sophia Munic Student Commissioners Absent: lack Ready III. Election of Officers Chair Bouassida stated that according to the bylaws, the election of officers must be held in April as the current terms are expiring. He asked for nominations for the position of Chair. Commissioner Peterson nominated Commissioner Raeuchle for the position of Chair. :ommissioner La Valleur nominated Commissioner Meifert for the position of Chair. The Commissioners conducted a written vote for the position of Chair. Mr. Frey reported that Commissioner Meifert was elected to the position of Chair with a vote of 5 -4. Chair Bouassida opened the floor for nominations for the position of Vice Chair. Motion by Commissioner Peterson and seconded by Commissioner Meifert that the Arts and Culture Commission elect Thomas Raeuchle as Vice Chairperson of the Arts and Culture Commission. Ayes: Hafed Bouassida, Kandace Ellis, Dana Lappin, Barbara La Valleur, Ray Meifert, Anne Miller, Kitty O'Dea, Paul Peterson, and Thomas Raeuchle. Motion carried. Chair Meifert assumed leadership of the meeting. IV. Approval of Meeting Agenda Chair Meifert noted the meeting agenda had been circulated and asked if there were requests for additions or changes. No additions to the agenda voiced. Motion by Commissioner Peterson and seconded by Commissioner O'Dea that the Arts and Culture Commission approve the agenda as presented. Ayes: Hafed Bouassida, Kandace Ellis, Dana Lappin, Barbara La Valleur, Ray Meifert, Anne Miller, Kitty O'Dea, Paul Peterson, and Thomas Raeuchle. Motion carried. V. Adoption of Consent Agenda A. Approval of Minutes Chair Meifert asked if there were changes or corrections to the minutes of the Regular Meeting of March 27, 2014. Commissioner O'Dea referenced the March 27, 2014 minutes and noted on page five, the third paragraph, it should state, "....funds could assist with I I fA, nd nA thp projects of the Commission." Motion by Commissioner O'Dea and seconded by Commissioner La Valleur that the Arts and Culture Commission approve the March 27, 2014 meeting minutes as amended. Ayes: Hafed Bouassida, Kandace Ellis, Dana Lappin, Barbara La Valleur, Ray Meifert, Anne Miller, Kitty O'Dea, Paul Peterson, and Thomas Raeuchle. Motion carried. B. Art Center Working Group Report C. General Manager's Report The consent agenda was approved as presented. VI. Community Comment There was none. VII. Reports /Recommendations A. Music in Edina Working Group Commissioner Peterson reported that the group met the previous night to amend the summer music series events as discussed at the last Commission meeting. He reviewed the amended schedule including a possible all -star event as the last event of the season. He mentioned the location of Rosland Park and stated that the parking concerns did not seem to be a concern to City staff. Commissioner Ellis stated that she spoke with a lieutenant at the Edina Police Department and noted that she received positive input and also believed that there would be a possibility for the Police Chief to be at the first event with volunteer units available for the series as well. Commissioner O'Dea stated that the pool usually clears out that late in the evening on Fridays. Commissioner Ellis stated that she also obtained contacts for vendors in the case that the Commission would like to pursue vendors. She confirmed that the Fire Department is also in agreement but needs to double check the date for the event. Commissioner Peterson noted that the group will continue to discuss vendors and whether or not to do an all -star event. He asked for any input from the Commission in regard to publicity. Commissioner O'Dea stated that she could assist as she is familiar with the process. Commissioner Peterson stated that he would like approval to move forward on fundraising and questioned whether that would fall under the Ways and Means Committee. Chair Meifert did not believe the Ways and Means Committee would be ready to gather funds for an event and believed that the group should be allowed to pursue fundraising. Commissioner Raeuchle believed that the Ways and Means Committee could begin with fundraising solely for the Music in Edina events. Commissioner Ellis stated that it was her understanding that the Ways and Means Committee would be used for fundraising and believed that the fundraising should be done by that group in order to better promote the Arts and Culture Commission. Commissioner Raeuchle stated that he believed that the group should be allowed to fundraise under the umbrella of the Arts and Culture Commission. Chair Meifert agreed that the Ways and Means Committee is not ready as the policies and recognition has not yet been determined and agreed that the Music in Edina group should be allowed to fundraise. Commissioner O'Dea stated that the Film Festival will occur in the fall and was concerned that if fundraising was not coordinated there could be some issues with fundraising for both events in such a short period of time. Commissioner Bouassida stated that the issue is not just about Music in Edina or the Film Festival but all of the events that will need fundraising. Chair Meifert stated that perhaps the Ways and Means Committee should come together faster in order to fundraise under the bigger umbrella. Commissioner Ellis noted that any donations would be placed into the Arts and Culture fund and the funds would be used for the event that is most near. She confirmed that there may be sponsors that wish to sponsor specific events as well. She stated that fundraising could be done on a large level for the Commission that mentions all of the events throughout the year. The Commission further discussed fundraising and how that should move forward as a whole and specific to the Music in Edina event. The concept of sponsorship versus fundraising was also discussed. Commissioner Peterson summarized the method that would be followed for fundraising and sponsorship as the model in regard to fundraising; confirming that each event will attempt to gain sponsorships while the bigger umbrella of the Ways and Means Committee will fundraise for donations. Mr. Frey stated that his concern is that the Commission has struggled with presenting a cohesive message and he did not see the Committee working on that message at this time. He believed that the community should hear about the Arts and Culture Commission first, supporting the specific event. Commissioner Raeuchle stated that it is his interpretation that the Ways and Means Committee would set policy and set coordination to ensure that sponsors are not contacted multiple times throughout the year but believed that specific fundraising and sponsorship would be gained through the specific event. Motion by Commissioner Raeuchle and seconded by Commissioner La Valleur that the Arts and Culture Commission authorize the Music in Edina Working Group to raise sponsorships in the name of the Arts and Culture Commission. Ayes: Hafed Bouassida, Kandace Ellis, Dana Lappin, Barbara La Valleur, Ray Meifert, Anne Miller, Kitty O'Dea, Paul Peterson, and Thomas Raeuchle. Motion carried. Commissioner Peterson stated that he would love Commissioners to come to the music events and make their presence known and /or assist. He also requested volunteer contacts that could be provided for traffic direction and clean up. B. Ways and Means Committee It was reported that the group has not yet met. Chair Meifert believed the Committee should meet as soon as possible to discuss the issue of umbrella fundraising. The members of the Committee were confirmed as Commissioners Peterson, Lappin, La Valleur, and Bouassida. It was confirmed that a Chair for the Committee will be elected at the next meeting and that the listed Commissioners will coordinate to set the next meeting date. C. Percentage for Arts Ordinance Commissioner Bouassida believed that the presentation to the Council was too late and scattered to be effective. He believed that an official Committee should be formed in order to develop a more thorough presentation. Commissioner La Valleur stated that the City Manager volunteered to attend a meeting to provide input on what could and could not be done in order to ensure that time is not wasted on something that could not be done. Commissioner O'Dea stated that at least the idea had been brought forward and agreed that the group could work to identify key points and summary. Commissioner Bouassida stated that he would prefer that the group be formalized to a Committee, which could provide a concrete recommendation and then meet with the City Manager. Mr. Frey stated that perhaps those individuals could work on their presentation and then the City Manager could be invited to the May meeting in order to provide input. He also provided another reference that could provide assistance as they drafted the Ordinance used by the city of Saint Paul. lotion by Commissioner Bouassida and seconded by Commissioner O'Dea that the Art and Culture Commission _reate a Percentage for the Arts Ordinance Committee composed of Commissioners O'Dea, Ellis and La Valleur. Ayes: Hafed Bouassida, Kandace Ellis, Dana Lappin, Barbara La Valleur, Ray Meifert, Anne Miller, Kitty O'Dea, Paul Peterson, and Thomas Raeuchle. Motion carried. D. Public Art Working Group Commissioner La Valleur provided a summary of her report and advised that Mr. Frey will be recognized for the Mayor's Commendation Award, as nominated by the Commission. She also advised of a possible partnership with the Minnesota Wild regarding a sculpture possibility at Braemar Arena. She noted that a member of the Public Art group has been working to develop a new logo and expressed interest in having that member come to the next Commission meeting to gain input. Commissioner Ellis questioned if there would be a charge for his services. Commissioner La Valleur stated that the template for the Public Art Working Group was created at no charge, but believed that if he was to create logos for each group, or the Commission as a whole, there would be a charge. Mr. Frey noted that the official name change would need to be approved and then submit to the City Council. It was determined that this would be done at a later time. VIII. Correspondence and Petitions Chair Meifert asked if there was any correspondence or petitions. None voiced. IX. Chair and Board Member Comments Commissioner Raeuchle referenced the issue of Grandview and noted that the City Council will be meeting prior to the next meeting of the Commission to discuss the matter. He noted that he has been working with others to develop draft programming and requirements for a public building at Grandview and summarized the information. Commissioner Lappin questioned if this information had been given to the Community Advisory Team (CAT). She noted that she has been attending the meetings on behalf of the Commission. Commissioner Raeuchle stated that he drafted this information, in conjunction with ideas that were discussed two years ago, and would like the support of the Commission to present this information to the City Council. Commissioner La Valleur questioned why Commissioner Raeuchle did not speak with Commissioner Lappin regarding this matter as she has been the representative. Commissioner Raeuchle stated that this was a last minute thing that he created in order to present to the City Council. Chair Meifert stated that he was unsure that all the activities mentioned have a link to the arts and was unsure that the Commission should be recommending those activities. Commissioner Raeuchle stated that he would not be speaking on behalf of the Commission but as a resident. Commissioner Lappin believed that the information should have been presented to the CAT team so they could have incorporated that information into the RFP. Motion by Ellis and seconded by Commissioner Bouassida that the Arts and Culture Commission recommend to the City Council that the content and the building concepts, specific to arts and culture, for the Grandview development be defined before a developer is hired. Further discussion: Mr. Frey stated that it was his understanding that Commissioner Lappin would be the eyes and ears of the Commission specific to the CAT team. He was unsure that specific input was directed or provided. Commissioner Lappin stated that she believed Commissioner Raeuchle should have come to a CAT meeting and present the information rather than going around to the City Council. Commissioner La Valleur noted that if this information is not brought forward to the City Council, the Commission will not have a voice. Commissioner Bouassida explained that the two issues are separate and the information from Commissioner Raeuchle is his own personal presentation to the Council as a resident while the motion before the Commission is the request that the content and building concepts be flushed out before a developer is hired. Ayes: Hafed Bouassida, Kandace Ellis, Barbara La Valleur, Ray Meifert, Anne Miller, Kitty O'Dea, Paul Peterson, and Thomas Raeuchle. Nays: Dana Lappin. Motion carried. Chair Meifert stated that he would like to meet with Commissioners individually in order to gather information on how the Commission can work better as a team. X. Staff Comments No comments made. XI. Adjournment The meeting was adjourned by the Chair at 6:18 p.m. My name is Lori Grotz and I have lived at 5513 Park Place for 35 years. Could you please help us understand the implications of Mr. Knutson's decision that the owner of 5508 Dever Drive does not need a Conditional Use Permit to elevate their front entry more than 4.5 feet above the existing front entry elevation on their split level house ? I understand there will be 3 front entries: the garage entry, a sliding glass door entry (to get around code requirements) and the main entry at an elevation more than 4.5 feet higher than the old entrance elevation. With a garage that will hold 5 vehicles and a house with 3 front entries, in the future, is this property going to be turned into a duplex or a triplex which would not be in the character of the neighborhood. Does the homeowner plan to operate his manufacturing business out of this home ? (He based his business out of his previous home at 5301 Humboldt) With Mr. Knutson's interpretation of Zoning Code 36 -439 subpart 7, 1 could say the garage entry is from where you could measure the existing front entry elevation. We ask that the ambiguous Zoning Code 36 -439 be reviewed and corrected immediately by the Council. We believe the code as written does not reflect the intention of the City Council. Homeowners and builders will continue to circumvent the code. Mr. Knutson also over ruled the Planning Department and stated that 5508 Dever Drive does not require a front yard setback variance. With the plans as submitted, we believe Mr. Knutson is in error. We would like to see his calculations. We would like to appeal Mr. Knutson's decision that a CUP and front yard setback variance are not needed at 5508 Dever Drive. To whom and how do we appeal? We also request that no building permit be issued until these issues in Section 36 -439 and our appeals have been addressed. Not every home fits on every lot. Please respond in writing to our requests; thank you in advance for your time service. 5508 Dever Height question W a a� Y ° i I,. Ng" - '�.... _�._� � •._ ::... _ — — i ('iLIH LEVEL 9,1GFh�L __'�' . Location of new split level entrance. On stairs, half way between basement and first floor: Split level entrance elevation = (895.35ft. +885.3ft.)/2 = 890.33ft. Old entrance elevation = 890.8 ft. 9 ax- .fie Ln wL G it GRAOG �y AK�K'� r�t1•iNG��'E. � � N GXIBiING Np'iE 7b�LUw OA + • L --1. F' t fl or entrance 895 35ft i i rs o - Jo i / ^��� � �» ` �¥ ��. { 4. \� \� may: d �§ > x .. > � � w. 9 6/30/2014 Municode 1\1 Sec. 36 -439. Special requirements. / In addition to the general requirements described in article XII, division 2 of this chapter, the following special requirements shall apply in the Single Dwelling Unit District (R -1): (1) Special setback requirements for single dwelling unit lots. a. Established front street setback. When more than 25 percent of the lots on one side of a street between street intersections, on one side of a street that ends in a cul -de -sac, or on one side of a dead -end street, are occupied by dwelling units, the front street setback for any lot shall be determined as follows: 1 If there is an existing dwelling unit on an abutting lot on only one side of the lot, the front street setback requirement shall be the same as the front street setback of the dwelling unit on the abutting lot. 2• If there are existing dwelling units on abutting lots on both sides of the lot, the front street setback shall be the average of the front street setbacks of the dwelling units on the two abutting lots. 3. In all other cases, the front street setback shall be the average front street setback of all dwelling units on the same side of that street. b• Side street setback. The required side street setback shall be increased to that required for a front street setback where there is an adjoining interior lot facing on the same street. The required side street setback for a garage shall be increased to 20 feet if the garage opening faces the side street. C. Interior side yard setback. The required interior side yard setback shall be increased by six inches for each foot the building height exceeds 15 feet. For purposes of this subsection, building height shall be the height of that side of the building adjoining the side lot line and shall be measured from the average proposed elevation of the ground along and on the side of the building adjoining the side lot line to the top of the cornice of a flat roof, to the deck line of a Mansard roof, to a point on the roof directly above the highest wall of a shed roof, to the uppermost point on a round or other arch -type roof, to the average distance of the highest gable on a pitched roof, or to the top of a cornice of a hip roof. d• Rear yard setback, interior lots. If the rear lot line is less than 30 feet in length, or if the lot forms a point at the rear and there is no rear lot line, then, for setback purposes, the rear lot line shall be deemed to be a straight line segment within the lot not less than 30 feet in length, perpendicular to a line drawn from the midpoint of the front lot line to the junction of the interior lot lines, and at the maximum distance from the front lot line. e• Rear yard setback, corner lots required to maintain two front street setbacks. The owner of a corner lot required to maintain two front street setbacks may designate any interior lot line measuring 30 feet or more in length as the rear lot line for setback purposes. In the alternative, the owner of a corner lot required to maintain two front street setbacks may deem the rear lot line to be a straight line segment within the lot not less than 30 feet in length, perpendicular to a line drawn from the junction of the street frontages to the junction of the interior lot lines, the line segment being the maximum distance from the junction of the street frontages. https: //I i brary.muni code.corrypri nt.aspx?h = &cl i ent[D= 15157 &H TM Req uest= https %3a %2f %2Fl i brary. muni code.com %2fHTM L %2f15157 %2flevel4 %2fSPBLAD E... 1/3 6/30/2014 M unicode f. Through lots. For a through lot, the required setback for all buildings and structures from the street upon which the single dwelling unit building does not front shall be not less than 25 feet. 9• Accessory buildings and structures used for dwelling purposes. Subject to the requirements of subsection (2) of this section, if any accessory building or structure (including, without limitation, garages), or if any addition to, or expansion of, (including, without limitation, an additional story) an accessory building or structure (including, without limitation, garages), is used or intended for use, in whole or in part, for residential occupancy, then such accessory building or structure or such addition or expansion shall comply with all of the minimum setback requirements for a single dwelling unit building. (2) One dwelling unit per single dwelling unit lot. No more than one dwelling unit shall be erected, placed or used on any lot unless the lot is subdivided into two or more lots pursuant to chapter 32. (3) Basements. All single dwelling unit buildings shall be constructed with a basement having a gross floor area equal to at least 50 percent of the gross floor area of the story next above. The floor area of accessory uses shall not be included for purposes of this subsection. (4) Minimum building width. No more than 30 percent of the length, in the aggregate, of a single dwelling unit building shall measure less than 18 feet in width, as measured from the exterior of the exterior walls. (5) Parking ramps prohibited. No parking ramp shall be constructed in the R -1 district. (6) Temporary retail sales of evergreen products from conditional use properties. The city manager may grant a permit for temporary retail sales of evergreen products, if: a. The owner of the property or other nonprofit group approved by the owner conducts the sale. b. The duration of the sale does not exceed 45 consecutive days and does not start before November 15 in any year. C. The sale area is located in a suitable off - street location that does not interfere with traffic circulation on the site or obstruct parking spaces needed by the principal use on the site. d. The sale area is not located within 200 feet of a property zoned and used for residential occupancy. e. The hours of operation do not extend beyond 10:00 p.m. f• Signage is limited to one sign per street frontage with an aggregate sign area not exceeding 100 square feet. (7) Additions to, or replacement of, single dwelling unit buildings and buildings containing two dwelling units. For additions, alterations and changes to, or rebuilds of, existing single dwelling unit buildings and buildings containing two dwellings, the first floor elevation may not be more than one foot above the existing first floor elevation. If a split level dwelling is torn down and a new home is built, the new first floor or entry level elevation may not be more than one foot above the front entry elevation of the home that was torn down. Subject to section 36- 434(9), the first floor elevation may be increased more than one foot. The provisions of this subsection shall apply to all single ,ENV dwelling unit buildings and buildings containing two dwelling units, including units in the this shall Floodplain Overlay District. Any deviation from the requirements of subsection require a variance. *. = 9Q? 8.5 .11( "7); Ord. No, 1) �_7 Q 4 - .F_2(1 https: // library. municode .conVprint.aspx?h= &clientlD= 15157& HTMRequest= https% 3a% 2f% 2flibrary. municode. com% 2fHTML %2fl5l57 %2flevel4 %2fSPBLADE._ 2/3 Lori Grotz From: Jackie Hoogenakker <1Hoogenakker @EdinaMN.gov> Sent: Wednesday, June 25, 2014 2:52 PM To: lori @lorigrotz.com Subject: FW: 5508 Dever, elevation two front entrances Jackie Hoogenakker, Administrative Support Specialist - -"� 952 - 826 -0465 i Fax 952 - 826 -0389 4801 W. 50th St. I Edina, MN 55424 JHoogenakker @EdinaMN.gov I www.EdinaMN.gov ...For Living, Learning, Raising Families & Doing Business From: Roger Knutson [mailto:RKnutson @ck- law.com] Sent: Friday, June 20, 2014 12:16 PM To: Kris Aaker Subject: RE: 5508 Dever, elevation two front entrances Kris - please call me to discuss, 651- 234 -6215. IV I assume, based upon the material I was given: (1) the front entry elevation of the tear down was 890.8, and (2) the home was a "split level dwelling." City Code section 36 -439 provides "...the new first floor or entry level elevation may not be more than one foot above the front entry elevation of the home that was torn down." The term "entry level" is not defined in the City Code. The plain meaning of the term is that it is the level or elevation at which you can enter the dwelling. The term "first floor" is not defined in the City Code but the terms "story" and "half story" are defined terms. The Code also provides that "floors not meeting the definition [of half story] shall be deemed a story." The City Code defines "story" to mean "Story means that portion of a building included between the surface of any floor and the surface of the floor next above, or if there is not a floor above, the space between the floor and the ceiling above. A basement with more than 50 percent of its exterior wall area located entirely below the proposed ground elevation adjoining the basement shall not be counted as a story." The term "split level dwelling" is defined in the City Code as "a dwelling that has two or three short sets of stairs, and two to four levels. The front entry is on a middle floor between two floors. The front door opens in a foyer or entry area located in a wing off the main house. From the front entry, a short flight of stairs leads up to the top floor and another short flight leads down." City Code Section 36 -439 requires that the first floor "or" entry level elevation, not both, be more than one foot above the entry level elevation of the home that was removed. The proposed home has an "entry level elevation" at 890.33 which is lower than the elevation of the tear down. Any ambiguity in the meaning of the zoning ordinance is resolved in favor of what the property owner proposed to do. Frank's Nursery Sales Inc. v. City of Roseville, 295 N.W.2d 604, 608 (Minn. 1980). To be effective, any restriction on land use must be clearly expressed. Chanhassen Estates Residents Ass'n v. City of Chanhassen, 342 N.W.2d 335, 340 (Minn. 1984). Based upon the facts which I assuming, my conclusion is that a variance or CUP is not required. From: Kris Aaker [mailto:KAaker @EdinaMN.gov] Sent: Thursday, June 19, 2014 3:17 PM To: Roger Knutson Subject: FW: 5508 Dever, elevation two front entrances Roger, Would you please comment on this proposal? Thank you, Kris _ Kris Aaker, Assistant City Planner r 952 - 826 -0461 1 Fax 952 - 826 -0389 4801 W. 50th St. I Edina, MN 55424 KAakerCcDEdinaMN.gov I www.EdinaMN.gov/Planning ...For Living, Learning, Raising Families & Doing Business ... ...... ......... . From: Richard Sahara [ma i Ito: rsahara clearstonetech.com] Sent: Thursday, June 05, 2014 8:30 PM To: Cary Teague Cc: Kris Aaker; Lydia Ong Subject: 5508 Dever, elevation two front entrances SON" 'ob, P� Hi Cary and Kris, During the meeting on Wednesday, one idea that was floated up is to have two entrances to 5508 Dever to address elevation issue. The attached file describes the proposal. We will be preparing the CUP /Variance also. Thanks, Richard 2 iRy.cp or# lev, ,I `arc `� `ARD W. S�. 1 0 IN 12 INK01 1 The Hennepin County Sheriff's Office Criminal Information Sharing and Analysis Unit (CISA) is staffed with crime analysts who work to prevent crime and solve cases. CISA provides analysis of crime trends and criminal activity to the Sheriff's Office and to law enforcement throughout the county. At the CISA offices, monitors update information about emergent events in the Real Time Analysis Center (R -TAC). Among its many uses, the R-TAC acts as a virtual command post by providing critical information in support of law enforcement personnel in the field. 0 As your Sheriff, it is my privilege to serve all the citizens of Hennepin County. The Hennepin County Sheriff's Office (HCSO) is dedicated to reducing crime and improving public safety. I believe our work contributed to an impressive achievement: since 2006, violent crime in our county has been reduced by approximately 36 percent. Among our accomplishments in 2013: • The HCSO Crime Lab cut its DNA testing turnaround time by half. This achievement was the result of work process improvements that were developed over a three -year period. • Violent criminals, narcotics operations, and gangs have been targeted. Large amounts of illegal narcotics have been confiscated. HCSO organized multi- agency warrant sweeps and we satisfied nearly 8,000 felony warrants. Approximately seven tons of unwanted medi- cine was collected for proper disposal. HCSO urges residents to use our disposal boxes to help reduce the risk that prescription pain- killers will be abused. HCSO continued a safety campaign to warn residents that opiate painkillers are a gateway to heroin addiction. • HCSO led the effort to add weapons screen- ing at more county courthouses. 2013 was the first full year for the additional screenings and more than 800 prohibited items were kept out of courtrooms. In response to the increasing number of ac- tive shooting incidents nationwide, HCSO continued its multi -year, comprehensive initiative to prepare and train to respond to mass casualty incidents and threats. In 2013, we trained more than 1,000 people from the community and law enforcement agencies during multiple exercises and events. HENNEPIN COUNTY SHERIFF'S OFFICE • 2012 ANNUAL REPORT • 1 HCSO advocated for legislation at the state and federal levels to address issues of ex- treme gun violence by those with untreated mental illness. We worked with Minnesota legislators to improve the state's participation in the National Instant Criminal Background System (NICS), ensuring people committed by a court for mental health treatment do not have access to firearms. HCSO made progress on the construction of the HCSO 911 Emergency Communica- tions Facility in Plymouth. The facility, which opens in 2014, will allow us to keep pace with current 911 call demand and it will provide the ability to enhance emergency communications capabilities with new tech- nologies. Our entire community — families, businesses, and government — continue to face economic challenges. HCSO demonstrates that we are good stewards of taxpayer dollars by pursuing cost - savings such as consolidating internal departments and seeking grants for equipment purchases and new programs. Approximately 300 residents volunteer at HCSO and they provide community outreach and emergency response. As I look forward to the year ahead, I am committed to continuing our policy of innovative resource management. This report highlights our 2013 achievements — achievements that were made possible because of the hard work of our personnel and the exceptional partnerships with law enforcement and the community. I am proud to serve in a community that recognizes that public safety is essential to maintaining our quality of life. I am honored to lead the men and women of HCSO who are dedicated to serve with leadership, integrity, and strong partnership. Adult Detention Division The Hennepin County Sheriff's Office (HCSO) operates the largest jail in Minnesota and the only jail in the state that is accredited by the American Correctional Association. The Sheriff's Office has achieved this distinction because it maintains the highest stan- dards of inmate custody and care. Many units and divisions within the Sheriff's Office have responsibilities and work assignments at the jail. The Sheriff's Office Adult Detention Division leads the overall management of the facility. The Sheriff's Office, as well as city, state, and federal law enforcement agencies, book arrestees into the jail. In 2013, there were 35,910 inmates booked into the facility. The Hennepin County Jail is located in Minneapolis and occupies space in both the Hennepin County Public Safety Facility (PSF) and in Minneapolis City Hall. Within the PSF there is a booking unit and 330 inmate housing beds. Across the street in City Hall, there are an additional 509 inmate housing beds on the upper floors of the building. Programs to assist inmates In 2013, the Sheriff's Office continued its participation in the Transition from jail to Community (TJC) project. The goal is to provide assistance to inmates so that they don't re- offend and return to jail. The Sheriff's Office Adult Detention Division created an assessment tool to identify risk factors for inmates. This will help Hennepin County service providers to address factors such as homelessness, unemployment, substance abuse and addiction, and management of mental health issues. For more than a decade, the Sheriff's Office has maintained a comprehensive volunteer program in the jail to provide mentoring and counseling opportunities for inmates. Approximately 100 citizen volunteers provide optional education classes for inmates. Topics include Alcoholics Anonymous, domestic violence prevention, and religious instruction. Inmates with mental health issues The Sheriff's Office continues to be a leader in addressing the issue of mentally ill inmates in jail. Based on national estimates, as many as 30 percent of jail inmates suffer from mental illness. In 2013, the Sheriff's Office worked with partners in the criminal justice system and the community to initiate important legislation. As a result, a new state law was enacted that ensures individuals in the civil commitment process are trans- ferred out of jail and brought to an appropriate psychiatric treatment facility in a timely manner. In 2013, Deputy Haissan Hussein became the first Somali- American to be sworn -in as a Deputy Sheriff in Hennepin County. He works in the jail where his assignments include the supervision and control of inmates, enforcement of security procedures, and providing services and information to visitors and inmates in the facility. Court Services Division The Court Services Division provides law enforcement services to the Fourth judicial District Court. The division helps to ensure that the judicial system operates safely, in an orderly manner, and without disruption. In 2013, the Court Services Division escorted 33,552 defendants to court and escorted 1,667 patients to mental health court. The Court Services Division is responsible for enforcing the District Court rules of decorum while maintaining safety and security in the courtrooms. This impor- tant work is conducted in approximately 96 courtrooms, located in eight court- houses and facilities throughout Hennepin County. Deputies provide security for judges, juries, court personnel, witnesses and all citizens. They escort defendants to and from courtrooms for appearances, as well as monitor, direct and control the movement of defendants throughout court proceedings. HENNEPIN COUNTY SHERIFF'S OFFICE • 2012 ANNUAL REPORT • 3 The Court Services Division makes arrests of persons who violate court orders or those who have an active warrant. Depu- ties assist all judges and court personnel with security concerns. They conduct patrols and security checks. At many court facilities, deputies assist with screening for weapons. In 2013, there were 186,561 persons screened and 837 prohibited items confiscated at suburban weapons screening locations. Items confiscated included knives, box cutters, razors, scissors, mace, and a replica gun. In 2013, temporary weapons screening stations at Brookdale and Ridgedale Court facilities became permanent. The Sheriff's Office recommended permanent weapons screening stations due to violent incidents and threats that have occurred in court- houses in Minnesota and nationwide. Information Technology Division The IT Division provides project man- agement services, technology leadership and consulting to the Hennepin County Sheriff's Office as well as other criminal justice agencies in Hennepin County and Minnesota. Primary responsibilities include the research, procurement, installation, and ongoing support of computer infrastruc- ture and specialized vendor systems. The division provides emergency support for applications 24 hours a day. The division also collaborates with law enforcement and criminal justice partners throughout the county and develops technology so- lutions that will assist in crime reduction and case resolution. In 2013, major IT projects included: • Increased use of virtual server technol- ogy to reduce hardware and energy costs while increasing the availability of critical systems. Launched the start of the movement to Microsoft Windows 7 and Office 2010 on all Sheriff's Office computers, which increases security and productivity while decreasing support costs by us- ing automated support and configura- tion technologies. Professional Standards Division The Professional Standards Division consists of the Administrative Unit, the Employee Development Unit, the Personnel Unit, the Internal Affairs Unit, the Central Records Unit and the Community Engagement Team (CET) (See page 9 for CET information.) Employee Development Unit The unit coordinates training activities for all Sheriff's Office personnel. Among its responsibilities, the unit conducts orientation sessions for new employees, coordinates emergency vehicle operation training, and publishes e- learning courses. The unit also provides special- ized training opportunities to other local, state, and federal law enforcement agencies. For example, citizens who volunteer as Reserve Officers at police departments throughout the county receive their training at the Sheriff's Office. This past year there were 4,000 hours of training provided to approxi- mately 100 law enforcement volunteers. In 2013, the unit conducted or coordi- nated more than two dozen active shooter training events that were attended by approximately 1,000 participants. (See page 5) In addition, the unit distributed new active shooter response bags with first aid supplies to Sheriff's Office personnel. Personnel Unit The primary mission of the unit is to recruit, select, manage and retain our Sheriff's Leadership Series In 2013, the Sheriff's Leadership Series was launched. The new program brings national and international experts to Hennepin County to discuss public safety topics. Newtown, Connecticut Police Chief Michael Kehoe spoke about his agency's response to the tragic shooting at Sandy Hook Elementary School. He was among the speakers to discuss recent active shooter incidents. most important resource: the employees of the Hennepin County Sheriff's Of- fice. The unit maintains the office policy manual to ensure compliance with state statute and office rules, and unit person- nel research emerging trends and look for innovative ways to improve services provided by the Sheriff's Office. The Sheriff's Office Citizen Law Enforce- ment Academy is conducted by the unit. Twice each year, the 10 -week program teaches citizens about public safety and the Sheriff's Office. The Sheriff's Office has several initiatives in place to recruit diverse employees so that our personnel more closely represent the community we serve. One example is the Law Enforcement and Diversity (LEAD) Program. Participants are known as "cadets" and they work at the Sheriff's Office while they are pursuing their law enforcement education requirements. There are 14 employees who work at the Sheriff's Office after successfully complet- ing the LEAD program. Internal Affairs Unit The Internal Affairs Unit provides citizens with a fair and effective avenue to voice their legitimate concerns about the actions of the Sheriff's Office. It also protects employees from false allegations of misconduct and wrongdoing. It is the responsibility of the Internal Affairs Unit to ensure that the integrity of the Sheriff's Office is maintained. Active shooter training Despite a decrease in violent crime, active shooter incidents are occurring with greater frequency nationwide. Through- out 2013, HCSO organized several training exercises to improve response capabilities during an active shooter incident. The exercises involved HCSO deputies, hundreds of officers from police departments across the county, and community representatives from schools, hospitals, faith communities, and busi- nesses. The training took a regional approach to planning. It was also valuable for coordi- nating a multi- agency response to homeland security incidents or other mass casualty events (photo 1). Topics addressed included response tactics, incident command, and the coordination and communication that are required to successfully manage these types of incidents. HENNEPIN COUNTY SHERIFF'S OFFICE • 2012 ANNUAL REPORT • 5 Extreme gun violence & mental illness In 2013, the Sheriff's Office led efforts at the state and federal levels to address issues of extreme gun violence by those with untreated mental illness. As presi- dent of the Major County Sheriff's Association, Sheriff Stanek met with President Barack Obama and his admin- istration (photo 2) on this issue to emphasize that people with untreated mental illness should not have access to firearms. Sheriff Stanek and a coalition of law enforcement also worked with Minnesota legislators to improve Minnesota's participation in the National Instant Criminal Background System (NICS) (photo 3). 11 AI , d R 2 R Enforcement Services Division The Enforcement Services Division includes the following units: Patrol, Special Operations, Water Patrol, K -9, and Transport. Patrol Unit The Patrol Unit provides emergency response, patrol services, service of civil papers, and warrant service to communi- ties throughout the county. In addition, the Sheriff's Office is the primary law enforcement service provider to Green- field, Hanover, Medicine Lake, Rockford, the Hennepin County Home School, the Hennepin County Adult Corrections Facility, Fort Snelling, the 133rd Minne- sota Air National Guard, 934th U.S. Air Force Air Wing, and U.S. Marine Corp/ Naval Reserves. The Patrol Unit responds to in- progress crimes and emergencies. In addition, it provides proactive enforcement efforts aimed at preventing crime. In partnership with local law enforcement agencies, the unit conducts directed patrols in areas of higher criminal activity. The result has been arrests in the affected areas, im- proved response times and the deterrence of criminal activity. Each year, the Patrol Unit conducts several Towards Zero Death enforcement efforts aimed at removing impaired drivers from the road. The Minnesota Department of Public Safety coordinates these details statewide. The Patrol Unit collaborates with the court system to con- duct home compliance visits to defen- dants who are under the jurisdiction of the DWI Court. Deputies also provide D.A.R.E. education to schools. Service of civil process A significant responsibility of the Sheriff's Office is the service of civil process. Deputies in the Patrol Unit handle 31 types of civil process, including subpoe- nas, summonses, and domestic abuse orders for protection. In 2013, the Patrol Unit received 21,735 processes for service. Of the papers received, persons were located and successfully served in 15,723 cases. In 2013, there were 2,596 foreclosure sales, which is a 37.2 percent decrease from 2012. In 2012, there was an average of 345 foreclosure sales per month, while in 2013, there was an average of 216 sales per month. The Sheriff's Office has contributed to implementation of Hennepin County's Foreclosure Prevention and Response Program. It provides assistance to homeowners and renters. For informa- tion, visit www.hennepin.us, or call the Minnesota Home Ownership Center at 651- 659 -9336. 1A 2013 Life Saving Award While serving civil papers in Minneapolis, Deputy Barry Heikkinen was monitoring police radio channels and heard of a shooting nearby. Deputy Heikkinen located a man with a gunshot wound to his chest and provided emergency care to the victim. Deputy Heikkinen is highly trained to respond to medical emergencies, in part, due to his service as a field medic in Iraq and Afghanistan for the U.S. Army Reserves. The victim underwent surgery and has recovered. Deputy Heikkinen has received the 2013 Life Saving Award from the Minnesota Sheriffs' Association. HENNEPIN COUNTY SHERIFF'S OFFICE • 2012 ANNUAL REPORT • 7 l r � � 275 Service of arrest warrants The Sheriff's Office is responsible for the administration and execution of service of arrest warrants, commitments and other court orders issued for persons who are wanted in Hennepin County and /or other jurisdictions. Responsibility for the execution of warrants also involves extraditing wanted individuals back to Hennepin County who are captured in other counties or states. The focus of this work is tracking down the county's most violent offenders. In 2013, there were 7,922 felony warrants satisfied. Every day, the Sheriff's Office and local law enforcement agencies pursue and arrest wanted individuals. In addition, the Sheriff's Office conducts special warrant sweeps that provide additional resources and personnel to executing warrants. In 2013, the Sheriff's Office completed two warrant sweeps in partnership with more than a dozen local police departments and federal agencies. A summer warrant sweep targeted offenders wanted on violations related to domestic abuse. A winter warrant sweep focused on arresting DWI offenders. The sweeps resulted in more than 1,000 warrants being satisfied, which includes arrests and voluntary surrenders. The Sheriff's Office, through the Patrol Unit, continued several important warrant initiatives. The Hennepin County Sheriff's Office Suburban Juvenile Initiative (SJI) focuses on juveniles with arrest warrants. SJI tracks down juvenile offenders, makes arrests, and encourages offenders to turn themselves in. The goal is to hold juveniles accountable for their actions. Another effective initiative is the Sheriff's Joint Warrant Initiative. Deputies partner with the Department of Community Corrections and Rehabilitation, probation officers and police officers throughout Hennepin County to work together in an effort to target and arrest high level offenders that are wanted and have had a history of violence. The BEAR In 2013, the Hennepin County Sheriffs Office announced the arrival of the Ballistic Engineered Armored Response vehicle, known as the BEAR. This is a rescue vehicle designed to help safely resolve high -risk incidents. The Sheriff's Office frequently uses the BEAR when conducting high - risk warrants. It may also be used in response to a variety of emergencies, such as active shooter incidents, hostage situations, or evacuating residents during a natural disaster. The vehicle was purchased with a grant from the U.S Department of Homeland Security. It is a regional resource for tactical officers in Hennepin County and law enforcement throughout the Upper Midwest. Enforcement Services Division Transport Unit The Transport Unit transports people under the jurisdiction of the county and state, including inmates bound for hearings in outer - division courthouses, convicted inmates bound for correctional facilities, and mental health patients bound for court hearings or being transferred from treatment facilities. In 2013, the Transport Unit logged 353,675 miles by safely transporting 7,677 inmates and 3,365 mental health patients pursuant to court orders. The unit served 1,096 court - ordered sum- monses. In addition, it completed 89 transports for local police departments by providing transport services to detention and detoxification centers. The unit also completed 1,306 writ transports (court- ordered appearances for prisoners held at Department of Correc- tions facilities throughout the state). K -9 Unit The K -9 Unit provides professionally - trained and highly- motivated K -9 teams to respond to critical incidents through- out Hennepin County and the region. The K -9 teams are an additional tool to enhance the capabilities of patrol or other units at a crime scene. In 2013, HCSO purchased three addi- tional German Shepards and designated a deputy as lead K -9 trainer. The canines and their deputy handlers completed rigorous training and certification, and the unit now has 12 K -9 teams available to provide service 24 -hours a day. The K -9 teams conduct sweeps for dignitary protection, conduct narcotics and explosives detection, track and apprehend fleeing suspects, and track and locate missing persons. In 2013, they completed 717 searches and 672 deploy- ments, which include arresting suspects wanted for violent crimes or felonies. The Sheriff's Office partners with the Federal Bureau of Alcohol, Tobacco and Firearms (ATF) Explosive Detection Canine Program. A Sheriff's Office K -9 team works with the ATF, which may include working details for other federal agencies nationwide. Sheriff's Office Community Advisory Board The Community Advisory Board (CAB) visited the firearms range to learn about law enforcement training. The board is a group of approximately 40 residents who come from all walks of life. Throughout the year, they meet and learn about public safety initiatives and provide feedback. The group also provides input concerning Sheriff's Office strategic planning. This is an effective way for the Sheriff's Office to receive direction directly from the residents of Hennepin County. Community outreach In 2013, the Sheriff's Office expanded ongoing outreach efforts to diverse communities in order to better address public safety concerns and to build trust. The Sheriff's Office Community Engage- ment Team (CET) met with residents at businesses, schools, and community events to discuss safety messages and crime prevention. Community involve- ment has many benefits including an opportunity for positive interaction with youth. HENNEPIN COUNTY SHERIFF'S OFFICE • 2012 ANNUAL REPORT • 9 Residents also enjoyed touring Sheriff's Office facilities to learn about the work of law enforcement. Discussions were organized with a wide variety of commu- nity leaders and groups, such as the Somali Women's Round Table. Special events included a holiday donation drive that assisted a domestic abuse shelter. Throughout the year, team members met with residents to identify public safety concerns and collaborate on proactive solutions. Special Operations Unit The Special Operations Unit (SOU) provides operational support to HCSO as well as local, state and federal law enforcement partners by coordinating planning and operations for special events and initiatives. SOU oversees the Booking Team, Command Post Team, Critical Infrastructure Patrols, Crisis Negotiation Team, and also the following teams and units: Emergency Management Team The Emergency Management Team coordinates public safety resources and personnel to plan for large community events and also to respond to public safety incidents such as natural disasters and emergencies. The team includes specialists from multiple disciplines including tactical operations, logistics, and technology. Hennepin County WMD Tactical Response Team The Sheriffs Office is the lead law enforce- ment agency for the Hennepin County WMD (Weapons of Mass Destruction) Tactical Response Team. The team is trained and equipped to respond to incidents involving weapons of mass destruction or hazardous materials. This team includes officers from the following law enforcement agencies: HCSO, Minneapolis -St. Paul International Airport, Brooklyn Center, Brooklyn Park, Eden Prairie, Golden Valley, Maple Grove, Metro Transit, Orono, Mounds View, Plymouth, St. Anthony, Ramsey County Sheriff's Office, Rogers, Champlin and the Minnesota State Patrol. Emergency Services Unit The Emergency Services Unit (ESU) responds to emergency incidents including hostage rescue, barricaded suspects, and high -risk warrant service. The team uses special training and equipment with the goal of achieving peaceful resolutions to dangerous situations. In 2013, the ESU executed 57 high -risk warrants for local, state and federal investigative agencies. Special Response Force The Special Response Force provides HCSO and local law enforcement agencies with personnel and equipment to support law- enforcement operations at events where there is a potential for civil unrest or criminal activity. The Special Response Force provides public safety services at emergency incidents, special events, and demonstrations. In 2013, the Special Operations Unit (SOU) coordinated SafeZone patrols in downtown Minneapolis. In partnership with several law enforcement agencies, Sheriff's Office deputies walked the downtown beat in a proactive effort to prevent crime and respond to public safety issues during the summer months. Li Learn more about the Hennepin County Sheriff's Office For invitations to these events and other information, subscribe to our email or text alerts at www.hennepinsherifforg. Sheriff Foundation Kids from the Boys & Girls Club of the Twin Cities go fishing with deputies during the annual Hooked on Fishing event. The Sheriff awards prizes for the biggest catch. The Hennepin County Sheriff Foundation is anon -profit group that organizes this event and other opportunities for at -risk youth. Open House The Sheriff's Office Open House takes place at the Sheriff's Patrol Enforcement Services Division in Brooklyn Park. School groups and all residents are welcomed to see more than a dozen safety displays and equipment demonstrations. Citizen Law Enforcement Academies When residents participate in the Sheriff's Office Citizen Law Enforcement Academy, they tour the jail, the Sheriff's Crime Lab, Sheriff's Water Patrol and several other facilities. The Academy is a series of weekly classes that give participants an up -close view of how law enforcement works. National Night Out and Night to Unite Neighbors organize their own gatherings for National Night Out and Night to Unite. Every August, there are hundreds of neighborhood events across Hennepin County. The Sheriff and deputies bring law enforcement vehicles and personnel to neighborhoods to share crime preven- tion information. HENNEPIN COUNTY SHERIFF'S OFFICE • 2012 ANNUAL REPORT • 11 Sheriff's Office Water Patrol Water Patrol Unit The Sheriff's Office Water Patrol en- courages residents to enjoy the county's waterways in a manner that is courteous and safe. Every day throughout Hennepin County, deputies patrol the county's 104 lakes and three major rivers. The Water Patrol conducted more than 750 hours of search, rescue, and recovery operations in 2013. This highly- trained unit routine- ly conducts training in partnership with other first responders in order to be prepared for a wide range of emer- gencies. The Sheriff's Water Patrol is trained to conduct swift -water rescues. In 2013, the Sheriff's Water Patrol participated in a nationwide campaign called Operation Dry Water. During the stepped -up enforcement effort, additional personnel were available to make arrests of intoxicated boaters and to remind all boaters about the importance of designat- ing a sober boat operator prior to their day on the water. During the winter months, this unit pa- trols frozen waterways with snowmobiles and airboats (shown in photo.) In 2013, the Water Patrol began an enhanced ice awareness detail. Special deputy volun- teers went to public boat launches to provide safety information to residents about thin ice. On Lake Minnetonka, channels and other known danger areas were marked with orange fencing and areas were patrolled more frequently. Remote Operating Vehicle In 2013 the Sheriff's Water Patrol began using its new Remote Operating Vehicle (ROV). Just as the name implies, the ROV is operated by remote control. As it explores the bottom of a lake or river, it sends back real -time SONAR images to a laptop computer screen. Using the ROV reduces the time needed to locate drowning victims and it has improved safety conditions for Sheriff's Office divers. The device confirms the location of a drowning victim prior to our divers entering deep, murky water that often contains debris. The ROV is also used to locate evidence underwater. Finance Division The Finance Division serves the entire Sheriff's Office, providing accounting support and financial reporting for the Sheriff's Office. The division developed the operating budget of $87.0 million for 2013, the five -year capital improvement plan, and it provides fiscal analysis. The division also develops a variety of reports that provide a basis to assess the financial impact of operations conducted within the Sheriff's Office. Trend analy- sis and year -end projections are provided on a regular basis to assess financial op- erations, and to provide a basis for timely and effective decision making. The Sheriff's Office acts as a good steward of taxpayer dollars by aggres- sively seeking federal and state grants to supplement local property tax funding and by enhancing partnerships in law enforcement and the community. HENNEPIN COUNTY SHERIFF'S OFFICE • 2012 ANNUAL REPORT • 13 Volunteer Services Division The Sheriff's Office is proud of our civil- ian volunteers who donate their time to provide valuable public safety duties, and in 2013, we created the new Volunteer Services Division. The Special Deputy Unit is included in the division. Volunteers are sworn in as "special deputies" after completing months of rigorous training, including training to be first responders. Special deputies are ready to assist with a wide variety of public safety incidents, and have responded to emergency scenes and have performed life- saving rescues. Most often, their dedicated service enhances our community outreach. Special depu- ties provide safety education to citizens and complete patrol work — on land and water. Examples of duties include: • Search, rescue and recovery of injured or missing persons • Patrol of lakes and rivers • Community events and parades • Emergency call outs • Traffic and crowd control • Interoperable communications • Medical emergencies • Underwater Rescue Team There are additional volunteer opportu- nities at the Sheriff's Office. Youth may volunteer in the Explorer Unit and adults may volunteer to teach classes to inmates in the jail. For more information, visit www.hennepinsheriff.org or email sher- iff@hennepin.us. Communications Division The Sheriff's Office Communications Division operates the largest consolidated public safety answering point in the Upper Midwest, dispatching for 21 fire departments and 24 police agencies in 37 communities. The 911 center operates 24 hours a day, seven days a week. Emergency 911 Dispatch Unit When you call 911 from many cities in Hennepin County, you will speak with the Hennepin County Sheriff's Office Emergency 911 Dispatch Unit. This is often the first point of contact for the caller to request assistance from the public safety community. Sheriff's Office telecommunicators (also known as 911 dispatchers) identify the particular needs of the caller by gathering critical information and using this to determine an appropriate level of re- sponse by law enforcement, fire, or emergency medical responders. This process involves the telecommunicators using three computerized emergency telephone, dispatch, and radio systems. Telecommunicators provide ongoing updates to the officers in the field through a sophisticated computer aided dispatch (CAD) system and 800 -MHz public safety radios. Radio Systems Management & Tactical Interoperable Communications Unit This unit operates the county's portion of a field - deployable communications system to enhance the statewide Strategic Technology Reserve (STR). The STR provides supplemental voice and data communications capabilities to incidents involving either a loss or lack of commu- nications infrastructure. The centerpiece of the Sheriff's Office STR is a self - contained deployable voice and data radio system installed on a trailer called a SATCOW (satellite equipped communications site on wheels.) The STR includes a radio tower trailer, and an electrical generator trailer with portable radios, laptop computers and other equipment. The STR also includes a mobile Incident Communications Center. The center is staffed by the Sheriff's Communications Response Team, consisting of Sheriff's Office engineering and technical staff from the Volunteer Services Division. Radio Technical Support Unit The Radio Technical Support Unit helps make interoperable communication possible by maintaining more than 7,000 portable and mobile radios on the 800 - MHz infrastructure in which the Sheriff's Office provides dispatch services. Mobile radios and the 800 -MHz system are used daily and the system has been proven to be essential to saving lives during major mass casualty incidents. The unit's technicians create and program radio templates, and they repair, diagnose and install public safety communications in police, fire, emergency medical, and public works vehicles for agencies throughout the county. Computer Aided Dispatch (CAD) management Seventeen dispatch consoles are equipped with a computer -aided dispatch software system that incorporate mapping, public safety unit recommendations, location hazards and appropriate data tables along with mobile computer access to officers in the field. The CAD computers interface with the 911 emergency phone system to provide caller location information to dispatchers and first responders. Communications Response Team (CRT) The CRT operation is staffed with highly - trained volunteers who have earned the title of "special deputy." MARC special deputies each hold an Amateur Radio Technician Class or higher license. They also serve on the Communications Response Team (CRT), a group within the Volunteer Services division. HENNEPIN COUNTY SHERIFF'S OFFICE • 2012 ANNUAL REPORT • 15 Update on the Sheriff's Office 911 Emergency Communications Facility On February 25, 2013, the Sheriff's Office marked the start of construction on our new 911 Emergency Communica- tions Facility. Throughout the year, extensive planning took place to ensure a seamless transition into the new high - tech facility. Among the accomplishments in 2013 were: Worked with the Metropolitan Emer- gency Services Board on a new shared/ hosted Next Generation 9 -1 -1 Tele- phone Answering System that will service multiple dispatch operations. It will be hosted at the Sheriff's 911 facility. • Constructed a redundant fiber path to connect the 911 facility with the ARMER radio backbone housed in the previous 911 facility in Golden Valley. • Planned for the transition of dispatch, technical services and engineering operations to the new 911 facility by creating several work groups. The new facility is located in Plymouth, adjacent to the Adult Corrections Facility. It is needed to ensure uninterrupted 911 services and to accommodate future advancements in communications technology such as capturing voice, data, photos and video for 911 calls and emergency communications. The total projected budget for the new facility is $33.7 million. Many cost - saving measures have been incorporated into construction plans. For example, the facility is being built on property that was already owned by the county. An existing communications tower is on the property so a new tower is not needed. The facility will improve operational efficiencies and optimize operating expenses by collocating three principal functions — the 911 Public Safety Answer- ing Point, Critical Infrastructure Radio and Data Network Center, and Radio Systems Operations and Technical Services. Construction is scheduled to be complet- ed in late July 2014 and the facility will begin operations at the end of 2014. Forensic Sciences The Forensic Sciences Division provides forensic services to suburban Hennepin County law enforcement agencies and several state and federal agencies. In 2013, the Hennepin County Sheriff's Office Crime Lab reduced its DNA testing turnaround time. For DNA recovered at the scenes of violent crimes, the turn- around time to analyze DNA evidence was reduced by 52 percent from 2010- 2013. During that same time period, in cases involving property crimes, the time required for DNA analysis was reduced by 68 percent. Studies have shown that when DNA analysis is used to investigate property crimes, a reduction in violent crime is seen as well. Crime Scene Unit Crime Scene Investigators (CSIs) collect evidence at crime scenes, disaster scenes, and other public safety incidents county- wide. CSIs are licensed sheriff's deputies dedicated exclusively to processing crime scenes 24 hours a day, seven days a week. In 2013, the CSIs responded to 2,966 requests for crime scenes to be processed. Crime Laboratory Unit The Crime Laboratory Unit includes: Administration and Support, Biology/ DNA, Evidence Management, Firearm and Tool Mark, Latent Print, and Multi- media Evidence. The Sheriff's Office Crime Laboratory is one of only three accredited crime laboratory systems in Minnesota and has earned International Program accreditation from the American Society of Crime Laboratory Directors/ Laboratory Accreditation Board (ASCLD/ LAB). The lab has developed a firearms reference library and has obtained more than 1,300 guns that can be used to assist Sheriff's firearm examiners in case work. Firearms evidence and analysis has tied criminals and crimes together. This is important in the prosecution of offenders. The Latent Print Section recovers latent fingerprints and palm prints from evidence submitted for processing and compares and identifies the latent prints to those of known persons. This work resulted in the comparison of more than 3,100 prints resulting in 890 identifications. Investigative Division The Investigative Division includes the Hennepin County Violent Offender Task Force, Narcotics Task Forces, Detective Unit, and Criminal Information Sharing 8z Analysis (CISA). Hennepin County Violent Offender Task Force (HC VOTF) HC VOTF conducts proactive, focused investigations on the county's most violent offenders. These offenders are engaging in suspected illegal activity and have a violent history based on arrests or convic- tions for homicides, weapons, aggravated robberies, narcotics and assaults. The task force includes personnel from the Sheriff's Office, the Drug Enforcement Administration (DEA) and the following police departments: Brooklyn Park, Brooklyn Center, Golden Valley, and Richfield. HC VOTF also works as a force multiplier — if crime increases in a certain community or area of the county, HC- VOTF may provide additional personnel to work with local law enforcement. Detective Unit The Sheriff's Office Detective Unit con- ducts investigations in communities where the Sheriff's Office is the primary provider of law- enforcement services, in communi- ties where the local police department lacks the resources to provide full -time investigators, and in county facilities including the Hennepin County Medical Center, Adult Corrections Facility and the County Home School. Detectives conduct hundreds of investigations into criminal activity ranging from property crimes to violent crimes, including homicides. Detectives are assigned to several specialty assignments, including the Minnesota Joint Terrorism Task Force, the Internet Crimes Against Children Task Force, the Northwest Collaboration (Brooklyn Park, Brooklyn Center, and Hennepin County Sheriff's Office), the Hennepin County Attorney's Office and the CODIS team which identifies suspects using CODIS, the Combined DNA Index System. HENNEPIN COUNTY SHERIFF'S OFFICE • 2012 ANNUAL REPORT • 17 Criminal Information Sharing & Analysis Unit (CISA) This unit provides timely analysis of criminal information to area law enforce- ment agencies, provides a platform for agencies to share information on criminal activity, and provides crime pattern and trend analysis. This helps identify suspects more quickly and it helps in crime prevention. CISA has assisted with organizing several effective partnerships that are grouped by geographic region. This unit organizes the information that is shared among investi- gators, adds further analysis and redistrib- utes the information back out to law enforcement. West Hennepin County Crime Collabo- ration: Hennepin County Sheriff's Office, Hennepin County Attorney's Office, Hennepin County Department of Com- munity Corrections and Rehabilitation, Carver County Sheriff's Office, Three Rivers Park District, West Hennepin Public Safety and police departments from: Corcoran, Deephaven, Medina, Minnetrista, Orono, Rogers, Wayzata, and South Lake Minnetonka Police. Northwest Hennepin County Crime Collaboration: Hennepin County Sheriff's Office, Hennepin County Attorney's Office, Hennepin County Department of Community Corrections and Rehabilita- tion and police departments from: Brook- lyn Park, Brooklyn Center, Champlin, Maple Grove, Minneapolis, Plymouth, Robbinsdale, Crystal, New Hope, and Metro Transit. Southwest Hennepin County Crime Collaboration: Hennepin County Sheriff's Office, Hennepin County Attorney's Office, Hennepin County Department of Community Corrections and Rehabilita- tion and police departments from: Bloom- ington, Eden Prairie, St. Louis Park, Edina, Golden Valley, Minnetonka, Minneapolis, Richfield, and Hopkins. Metro Regional Information Collabora- tion: Hennepin County Sheriff's Office and sheriff's offices from the following counties: Ramsey, Washington, Anoka, Dakota, Carver, Sherburne and McLeod. Want to fight crime? Send your crime tips anonymously to the Sheriff's Office. Select one of the options below. In case of emergency, call 911. Install a cell phone app. Free apps are available for Phones and androids. Search for the word Hennepin in the app store. Text HCSOtip to 847 411. Begin your message with the keyword HCSOtip. Use our QR code. Scanning the code allows easy access to an online tip form. ❑' ;: i❑ qr Or Narcotics task forces HCSO is committed to strong investiga- tive partnerships with federal, state and local law enforcement. Narcotics task forces include officers from different agencies to promote collaboration and to provide geographic coverage for narcotic investigations. HCSO assigns a deputy to work with the Northwest Metro Drug Task Force which includes officers from the following police departments: Plymouth, Crystal, Robbin- sdale, New Hope, and Brooklyn Center. In addition, two HCSO deputies work with the Drug Enforcement Administra- tion (DEA) to combat narcotics traffick- ing across state lines. Medicine Disposal w�' Combatting heroin and painkiller abuse In 2013, HCSO continued its efforts to fight the opiate crisis — which includes heroin and prescription medication abuse. HCSO and our personnel working on narcotics task forces confiscated a large amount of heroin and targeted illegal drug operations. For each task force listed below, HCSO contributes a deputy and a sergeant to oversee daily operations. West Metro Drug Task Force: HCSO, Medina Police Department, Orono Police Department, and West Hennepin Public Safety. In 2013, the task force made 54 arrests and completed 81 search war- rants. Southwest Hennepin Drug Task Force: HCSO, Hopkins, Eden Prairie, St. Louis Park, Edina, and Minnetonka. In 2013, the task force made 270 arrests and completed 120 search warrants. To reduce the risk of prescription medication abuse, residents are urged to properly dispose of unwanted medications in disposal boxes (center). HCSO collected nearly seven tons of medications in 2013. For disposal box locations, visit www.hennepinsheriff.org. In addition, Sheriff Stanek and Minnesota Senator Chris Eaton At community events throughout the year, HCSO and counselors announced a proposal for new law that would allow law provided information to parents about drug prevention for enforcement officers to administer a heroin antidote (left). teens (right). This would provide quicker access to lifesaving treatment for people who overdose. Sheriff Richard W. Stanek is the 27th Sheriff of Hennepin County and is serving his second term in Minnesota's largest county with 1.2 million residents. He was first elected in November of 2006, and was re- elected in 2010. HENNEPIN COUNTY SHERIFF'S OFFICE • 2012 ANNUAL REPORT • 19 Leadership A 30 -year veteran of law enforcement, Sheriff Stanek began his career in the Minneapolis Police Department; he rose through the ranks from patrol officer, detective, precinct commander, to commander of criminal investigations. While a police officer, Sheriff Stanek was elected five times to the Minnesota State Legislature where he chaired the House Crime Policy & Finance Committee and authored Minnesota's Felony DWI law, Minnesota's standard for DNA collection for predatory offenders, and Minnesota's Homeland Security Act of 2002. In 2003, he was appointed by the governor as Commissioner of Public Safety & Direc- tor of Homeland Security for Minnesota. Sheriff Stanek currently serves in leader- ship positions with several national organizations and on several national boards. He is on the executive committee for the National Sheriffs' Association, serving as chair of the Homeland Secu- rity Committee, and vice -chair of the Global Affairs Committee. Chief Deputy Mike Carlson He is the immediate past president of the Major County Sheriffs' Association. In that role, Sheriff Stanek participated in the President Obama's national law enforcement working group that was convened by the White House to address gun violence and mental health. Sheriff Stanek serves on both the Director of National Intelligence's Joint Counter - terrorims Assessment Team and the Homeland Security /Law Enforcement Advisory Board. He is a member of the Criminal Intelligence Coordinating Council which advises the U.S. Attorney General on national and international issues of public safety. Sheriff Stanek earned a Criminal Justice Degree from the University of Minnesota, and a Master's Degree in Public Adminis- tration from Hamline University. Major Kip Carver Investigations Bureau Major Tracey Martin Administrative Services Bureau Major Darrell Huggett Enforcement Services Bureau Major Jeff Storms Detention /Court Services Bureau Volunteers: Promotions Years of The following personnel were promoted to the ranks and positions listed below: Service Awards Captain: ... ............................................................................................. Ken Crouch Lieutenant: ..................................... Dan Antisdel, Shawn Maloney, Robert Staupe Jail Volunteers Telecommunications Sergeant: .... ......................................................... Rita Feucht Sergeant: .... .......... Erik Fleck, Shawn Gullickson, Nabil Gottwaldt, Daniel Koski, 10 years of service: ............................................................................... ............................... Jeffrey Biebl Mary Lind Detention Sergeant: .... ..................................... ............................... Chris Douglas Deputy: ......... ... Haissan Hussein, Eric Olson, Jeffrey Grates, Michael Hendricks, Special Deputies ........................................................................................ ...................EricAnderson 5 years of service: Principal Office Specialist: ............................................................. Elizabeth Sharp Noah Barton Forensic Science Supervisor: ... ............................ .........................Angela Erickson David Cartwright Custody Records Coordinator ....................... Eugene Lyons, Michaela Christensen Forrest Deering Custody Records Supervisor ............................... ............................... Nan Terlisner Daniel Fesler James Frederickson Jeffery Kleven Retirements Mary McCarthy David Ratz Employee retirements Position Years of service Lisa Reinhart Richard Rindal Kathy Schleif, Deputy 20 years Kathleen Sautter Michelle Scheidemantle Brenda Opheim, Deputy 25 years Amanda Schuman Joe Sherohman Det. Sgt. Vern McIntyre, Detention Sergeant 21 years Sheldon Smith Andrew Talatinick Jakki Schultz, Administrative Secretary 32 years John Warren Brendan Williams James Anderson, Deputy 22 years Jared Zochert Terry Thompson, Deputy 28 years 10 years of service: Richard Siakel Sherry Ramin, Accountant 22 years 15 years of service: Jason Stahlberg, Deputy 30 years Arthur Hart Craig Petersen 35 years of service: Stephen Hartman Roald Knutson 45 years of service: John Thill Sheriff's Office awards Unit Citation Award HCSO Communication Division Sheriffs Award of Merit Mound Fire Department Sergeant Clayton Sedesky Deputy John Cramble Commendation Award Telcommunications Sgt. Liane Yanta Telcommunications Sgt. Lou Menton Telcommunications Sgt. Russ Hanes Deputy Andy Gelbmann Deputy Craig Canny Deputy Jeff Marshall Deputy Joe Seffens Deputy Matt Hagen Deputy Grant Breems Detective Bernie Bogenreif Sergeant Matt Steffens Warrant Clerk Elizabeth Sharp HENNEPIN COUNTY SHERIFF'S OFFICE • 2012 ANNUAL REPORT • 21 Citizen awards Sheriff's Award of Merit Bill Wilen Bob VanDenBroeke Chief Justice Paul Anderson Sheriff's Distinguished Service Award Joe Boston Greg Ovik Susan Adams Loyd Imam Sheikh Sa'ad Roble Bishop Richard Howell Katey Taylor Tom Siegert Gloria Belmer Special Deputy David Cartwright Connect with us! Visit www.hennepinsheriff.org to access our social media channels. Like us on facebook www .facebook.com /hennepinsheriff Follow us on Twitter www.twitter.com /hennepinsheriff Watch our safety videos www.youtube.com /hennepinsheriff Subscribe to email messages www.hennepinsheriff.org f The icons represent the eight lines of business for the Sheriff's Office: Jail, 911 /Dispatch, Patrol, Crime Lab, Investigations, Warrants, Court Security, Civil Process. HENNEPIN COUNTY SHERIFF'S OFFICE 350 South Fifth Street, Room 6 Minneapolis, Minnesota 55415 612.348.3744 www.hennepinsherifforg Text tips to hcsotip at 847411 WATCH your kids when they are in —or near —the water In 70 percent of cases where young children drowned, one or both parents were nearby. Being nearby isn't enough. Adults must focus on their kids who are in —or near —the water. For preschool children, use "touch supervision" — parents should be close enough to reach the child at all times. Designate one adult as a "Water Watcher" who will focus on the kids and avoid distractions such cell phones or even talking with others. Remain near the water until you pass the responsibility to another adult. Parents must give careful, constant and active supervision to their kids —even when there are lifeguards on duty. WEAR an approved life jacket Weak swimmers or non - swimmers should wear U.S. Coast Guard - approved life jackets in or near swimming pools or other bodies of water. Adult supervision is still needed. Do not rely on water wings or other inflatable devices. State law requires that children under age 10 must wear a life jacket while boating. Life jackets must be readily accessible for all boaters. It is highly recommended that all children and adults wear life jackets during boating. LEARN to swim and learn more about water safety Adults and children must know how to swim. Teach children how to tread water, float and stay by the shore. For a safe rescue of a submerged person, use a shepherd's hook to pull them to the water's edge. For a safe rescue of a conscious person, throw them a life preserver or use a shepherd's hook —so they may reach for it and then be pulled to safety. Learn CPR. This should be a priority for parents! Stay away from swimming pool /spa drains and other pool openings to avoid entrapment. Report damaged or non - compliant drains and covers. Do not enter a pool or spa with a broken, loose or non - compliant drain cover. Keep swimming, boating, and water recreation fun —by keeping these activities safe! Drowning is the leading cause of accidental death for children 1 to 4 years old. Among children 1 to 14 years old, it is the second leading cause of accidental death. Drowning is QUIET. Someone who is struggling will not yell for help and will not wave their arms. Often, they slip silently underwater. Drowning is QUICK. It takes only a few minutes for a drowning or serious brain injury to occur. "Drowning prevention requires more than one safety measure. If one safety measure fails, another safety measure might save your life —or the life of your child." Sheriff Rich Stanek Hennepin County Sheriff's Office Hennepin County Sheriff's Office Dedicated to increasing public safety through leadership, integrity, and strong partnerships In case of emergency, call 9 -1 -1 To learn more, visit www.hennepinsherifforg and www.thinkdontsink.org. Hennepin County Sheriff's Office 350 South Fifth Street, Room 6 Minneapolis, Minnesota 55415 612 - 348 -3744 www.hennepinsheriff.org HENNEPIN COUNTY SHERIFF'S OFFICE Our 2014 goals 1. Build upon innovative uses of social media, communications, citizen input, and public education to fight crime. 2. Maintain international accreditation of the Crime Lab to continue to provide forensic services using the highest industry standards. 3. Continue to provide excellent training opportunities to our current employees and recruit and hire a highly - skilled, diverse workforce to meet the needs of the future. 4. Continue to focus on public — private partnerships. 5. Increase public safety awareness and build strong relationships between diverse communities and HCSO. The Sheriff's Community Engagement Team will lead our community policing efforts. 6. Complete the successful transition to the new HCSO 911 Emergency Communications facility, ensuring the implementation of state -of -the art technology and seamless interoperability between HCSO and local jurisdictions. 7. Contribute to the multi- agency Jail to Community initiative that will provide services to inmates with the goal of reducing the risk that they will re- offend and return to jail. 8. Provide law enforcement services in a cost - effective manner and continue to implement innovative efficiencies in operations. 9. Optimize IT assets and strategically incorporate future generation law enforcement technology projects in a cost - effective manner. 10. Continue efforts at the Minnesota Legislature to address issues of those suffering with mental illness and the criminal justice system. The jail should not be a holding place for the mentally ill. In Hennepin County Sheriff's Office - �( � 350 South 5th Street Room 6 - Minneapolis, MN 55415 s_ 612 - 348 -3740 www.HennepinSherifforg =�- Text tips to: HCSOtip at 847411 Mission F r Dedicated to increasing public safety through leadership, integrity & strong partnerships I a M Outstanding public safety through exemplary leadership, dynamic, collaborative partnerships & innovative resource management. I,4coUNT\ The icons represent the eight lines of business for the Sheriff's Office: Jail, 911 /Dispatch, Patrol, Crime Lab, Investigations, Warrants, Court Security, Civil Process. 2/2014 STRATEGIC PLAN 2014 I am extremely proud of the accomplishments of the Hennepin County Sheriff's Office (HCSO) in fighting crime and planning for the future needs of public safety. Our list of achieve- ments along with our new 2014 goals demonstrate our commit- ment to improving public safety throughout the county. In an effort to respond to the needs of the people we serve, we received input on our strategic plan from residents who represent businesses, schools, places of worship and community groups. I invite you to review our public safety goals and provide your feedback by emailing me at sheriff @hennepin.us. J. - .. W Richard W. Stanek Hennepin County Sheriff Strategic focus priorities • Fight violent crime and the lethal combination of guns, gangs, kids and drugs. • Advance capabilities and best practices in criminal information sharing & analysis throughout Hennepin County and the region to reduce and prevent crime. • Serve as good stewards of taxpayer dollars through innovative and prioritized management of resources. • Leverage innovative technology and forensic sciences to efficiently solve crime and reduce victimization across the county. • Lead in the preparation, training and response to emergencies, disasters and threats, including Homeland Security. • In service to the residents, provide leadership and education on issues of public safety. • Value the contribution of employees and volunteers of the Sheriff's Office and provide opportunities needed for skills enhancement and leadership development. 2013 Accomplishments 1. Continued crime reduction across Hennepin County: Since 2006, violent crime in the county has dropped 36 %. Information -led policing identified crime trends, criminal enterprises operating in multiple jurisdictions, and high -risk offenders. Sharing data across the region and leveraging partnerships through the Hennepin County Violent Offender Task Force and the Metropolitan Regional Information Collaborative have been vital to the success in reducing violent crime. 2. Reduced Forensic DNA analysis turnaround time by half at the HCSO Crime Lab: Created efficiencies in workflow to reduce the time required for DNA analysis compared to turnaround times three years ago. In 2013, there were increased requests completed for biology /DNA evidence and an increased caseload for the analysis of firearms evidence. The Crime Lab maintained international accreditation. 3. Advocated for public safety legislation at the state and federal levels: Led efforts at the state and federal level to address issues of extreme gun violence by those with untreated mental illness. We also worked with Minnesota legislators to improve Minnesota's participation in the National Instant Criminal Background System (NICS), ensuring people committed by a court for mental health treatment do not have access to firearms. 4. Focused on strong partnerships: Used a collaborative approach to law enforcement at the local, state and federal levels, including the coordinated efforts of SafeZone and countywide warrant sweeps. The HCSO Community Advisory Board provided input from residents concerning strategic planning and new initiatives. 5. Disposed of seven tons of unwanted medications: Collected unwanted medications in six disposal boxes and conducted environmentally -safe destruction of the medicine to reduce the risk of addiction and abuse of prescription painkillers. HCSO worked with partners from the private sector to conduct town hall meetings concerning painkiller and heroin abuse prevention. 6. Provided crime prevention messaging and outreach: Partnered with community organizations through our Community Engagement Team to share crime prevention information with residents and to discuss their public safety concerns at many events including National Night Out, Hooked on Fishing and One Day Citizens' Academies. 7. Conducted multi- agency Active Shooter Training: Organized and conducted a year -long schedule of training exercises for HCSO and multiple law enforcement agencies to prepare, prevent and respond to active shooter incidents. Training took a regional approach to emergency response and included representatives from schools, places of worship, hospitals, and businesses. 8. Launched the Sheriff's Leadership Series: Created a program that brought national and international experts to HCSO to provide information to residents and law enforcement personnel about public safety topics including homeland security and active shooter incidents. 9. Acted as good stewards of taxpayer dollars: By careful planning, cost - saving measures were taken and efficiencies were realized by consolidating and relocating internal departments within HCSO. 10. Established the new Volunteer Services Division: Recognizing the tremendous value of our civilian volunteers, HCSO created a new division that consists of Special Deputies, Jail volunteers, and our youth Explorer Post. Approximately 300 residents donate their time to provide public safety services.