--- title: November 10, 1997 author: user date: D:20260616135632-05'00' --- c\"TY o^. ## CITY OF SAINT PETER, MINNESOTA ## AGENDA AND NOTICE OF MEETING Regular City Council Meeting of Monday, June 22, 2026 - 7:00 p.m. ## Community Center - Governor's Room (600 South Fifth Street) ## I. CALL TO ORDER ## II. APPROVAL OF AGENDA ## III. APPROVAL OF MINUTES - p. 5-6 ## IV. VISITORS ## A. Scheduling of Visitor Comments on Agenda Items ## B. General Visitor Comments ## V. APPROVAL OF CONSENT AGENDA ITEMS - p. 7-12 ## VI. UNFINISHED BUSINESS ## None Scheduled ## VII. NEW BUSINESS A. 2026A General Obligation Bonds - p. 13-28 ## B. Unforeseen Circumstances Loans - p. 29-32 C. Southwest Minnesota Housing Partnership CLT Project Funds Designation - p. 33-37 ## D. 1225 S Washington Ave Development Update - p. 38-63 E. 2026 ADA Accessibility Grants - p. 64-68 F. CBD Renovation/Accessibility Enhancement Loan - 222/224 S MN Ave. - p. 69- 73 ## G. Revolving Loan Request Approval - p. 74-79 ## VIII. REPORTS ## A. MAYOR ## B. COUNCILMEMBERS ## C. CITY ADMINISTRATOR ## IX. ADJOURNMENT ## Todd Prafke ## City Administrator ## CITY OF SAINT PETER, MINNESOTA ## OFFICIAL PROCEEDINGS ## MINUTES OF THE CITY COUNCIL MEETING ## JUNE 8, 2026 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Saint Peter was conducted in the Governors’ Room of the Community Center. A quorum present, Mayor Nowell called the meeting to order at 7:05 p.m. The following Councilmembers were present: Keri Johnson, Darrell Pettis, Ben Ranft, Josh Weisenfeld, Dustin Sharstrom and Brad DeVos. The following officials w ere also present: City Administrator Todd Prafke, City Attorney James Brandt, Public Works Director Pete Moulton, and City Engineer Jeffrey Domras. Approval of Agenda – A motion was made by Ranft, seconded by Weisenfeld, to approve the agenda. With all in favor, the agenda was approved. Approval of Minutes – A motion was made by Ranft, seconded by Pettis, to approve the minutes of the May 26, 2026 regular City Council meeting. With all in favor, the minutes were approved. A complete copy of the minutes of the May 26, 2026 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 20. Public Hearing – A Public Hearing regarding the assessments to properties for the 2026 N. 4 th Street Improvement Project (Chatham to Skaro) was called to order at 7:07 p.m. Public Works Director Moulton and City Engineer Domras reviewed the project timeline and work to be completed. With no questions or comments, the hearing was adjourned at 7:09 p.m. Consent Agenda – City Administrator Prafke noted that members were provided with an additional memo regarding licenses and an amended Resolution for the Consent Agenda including the additional licenses and requested the amended Resolution be approved. In motion by Ranft, seconded by Sharstrom, Resolution No. 2026–107 entitled “Resolution Approving Consent Agenda”, was introduced. Upon roll call, with all in favor, the Resolution was declared passed and adopted. A complete copy of Resolution No. 2026-107 is contained in the City Administrator’s book entitled Council Resolutions 26. North Fourth Street Improvement (Chatham to Skaro) Assessment Approval – Public Works Director Moulton reminded members that the City will be assessed a portion of the project due to the City owning property on a portion of the block. In motion by Pettis, seconded by Sharstrom, Resolution No. 2026- 108 entitled “Resolution Adopting Assessments for 2026 North Fourth Street Improvements from Chatham to Skaro Street“ was introduced. Upon roll call, with all in favor, the Resolution was declared passed and adopted. A complete copy of Resolution No. 2026- 108 is contained in the City Administrator’s book entitled Council Resolutions 26. City Assistance: Minnesota Original Music Festival – City Administrator Prafke presented the request for city assistance for the Minnesota Original Music Festival, now in its fifth year. Approval was recommended contingent on the organizers meeting all conditions listed, including appropriate liability insurance. 5 In motion by Johnson, seconded by Ranft, the Resolution No. 2026-109 entitled “Resolution Approving Request for City Assistance for Minnesota Original Music Festival Event” was introduced. Upon roll call, with all in favor, the Resolution was declared passed and adopted. A complete copy of Resolution No. 2026-109 is contained in the City Administrator’s book entitled Council Resolutions 26. City Assistance Request: Experience St. Peter Street Market – City Administrator Prafke presented the request for city assistance for the Experience Saint Peter Street Market. The event features vendors on Minnesota Avenue sidewalks (north of Nassau Street) in front of participating businesses. Events are planned for Thursday evenings from 4:00-7:00 PM in July, August, and September. Accessibility requirements on public sidewalks and appropriate liability insurance are required. It was clarified that the event utilizes sidewalks only and does not close Highway 169. In motion by Ranft, seconded by Weisenfeld, Resolution No. 2026-110 entitled “Resolution Approving Request for City Assistance for Street Market Event” was introduced. Upon roll call, with all in favor, the Resolution was declared passed and adopted. A complete copy of Resolution No. 2026-110 is contained in the City Administrator’s book entitled Council Resolutions 26. New Licenses – City Administrator Prafke presented the peddler license and low potency hemp license applications. All applicants met ordinance requirements, including completion of required background checks. Approval was recommended. Councilmembers Weisenfeld shared concerns about the broader policy of issuing peddler licenses, particularly for door-to-door sales. In motion by Ranft, seconded by Pettis, Resolution No. 2026-111 entitled “Resolution Approving New Licenses” was introduced. Upon roll call, with Councilmembers Weisenfeld and DeVos voting against, and all others in favor, the Resolution was declared passed and adopted. A complete copy of Resolution No. 2026-111 is contained in the City Administrator’s book entitled Council Resolutions 26. ## Reports Mayor’s Report – Mayor Nowell had no reports. Councilmember Reports – Councilmembers had no reports. City Administrator Reports – City Administrator Prafke extended thanks to all who participated in the Kickoff to Summer event. Prafke also noted to keep an eye out for more events coming up by watching the HotSheet, Facebook and other social media sites as well as the City Website. There being no further business, a motion was made by Ranft, seconded by Weisenfeld, to adjourn. With all in favor, the motion carried, and the meeting adjourned at 7: 20 p.m. ___________________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 6 ## Memorandum ## TO: Todd Prafke DATE: 6/18/2026 ## City Administrator FROM: Sandi Owen Sherri Terhurne Operations Manager Compliance Manager ## RE: Transit Driver Appointments ## ACTION/RECOMMENDATION Authorize the appointment of Christian McCabe to the position of Part-t ime Transit Support Specialist at the wage of $21.34 per hour. ## BACKGROUND Transit has one Part-t ime Transit Support Specialist position open. After advertising, we received one application for part-time support specialist. Christian was interviewed, and we feel Christian will be a good asset to Minnesota River Valley Transit. At this time, we would like to add Christian to help fill the dispatcher schedule. We recommend Christian McCabe to be appointed to the position of Part-time Transit Support Specialist at the pay rate of $21.34 per hour. Please feel free to contact me should you have any questions or concerns on this agenda item. ## SO/ST 7 ## Memorandum ## TO: Todd Prafke DATE: 6/18/2026 ## City Administrator ## FROM: Kayla Campbell ## Interim Recreation and Leisure Services Director ## RE: Seasonal Pool Staff Appointment ## ACTION/RECOMMENDATION Appoint the candidate below to the seasonal position and wage listed. ## BACKGROUND The Recreation & Leisure Services Department needs additional help at the outdoor pool. I am seeking approval for the appointment of the following staff at the position and wage listed to begin work in June and continue throughout the duration of the seasonal programs. A background check was passed. All wages are provided according to the resolutions previously adopted by the City Council. ## Employee Name Position Wage ## Denzer, Olivia ## Lifeguard/WSI $19.50 Please feel free to contact me with any questions or concerns regarding this agenda item. ## KC/ 8 ## Memorandum ## TO: Todd Prafke DATE: 6/18/2026 ## City Administrator ## FROM: Hayden Lacher ## Community Development Specialist ## RE: Temporary Gambling ## ACTION/RECOMMENDATION Provide approval of a Temporary Gambling license. ## BACKGROUND Gustavus Adolphus College has submitted a Temporary Gambling License application to host raffles at 800 W. College Avenue on November 2 nd , 2026. Should you have any questions or concerns on these agenda items, please do not hesitate to contact me. ## HL/ 9 ## Memorandum ## TO: Todd Prafke DATE: 6/24/2026 ## City Administrator ## FROM: Hayden Lacher ## Community Development Specialist ## RE: Temporary Dance ## A ## CTION/RECOMMENDATION ## P rovide approval of a Temporary Dance license. ## BA ## CKGROUND The Red Men Club has submitted a Temporary Dance License application to hold a dance at 412 South 3rd Street on July 3rd, 2026. ## S hould you have any questions or concerns on these agenda items, please do not hesitate to contact me. ## HL / 10 ## Police Department ## Memorandum ## TO: Todd Prafke DATE: 06/11/2026 ## City Administrator ## FROM: Matt Grochow ## Chief of Police RE: Surplus Property ## ACTION/RECOMMENDATION Declare an item as surplus property and authorize disposal of the item as authorized in the City Code. ## BACKGROUND The Police Department seized a vehicle in 2023 during a felony driving while intoxicated incident. After the conclusion of the case, appropriate steps were taken to transfer the title into the City of Saint Peter’s name. The means of disposing of surplus property is outlined in the City Code based on the estimated value of the property. Options range from a public auction for the highest value, seizures or outright disposal of items with no little to no value. The item recommended for public online auction to the State of Minnesota’s MNBID website (https://mnbid.mn.gov) is listed below with the funds from the sale distributed per Minnesota State Statute. ## 2008 Jeep Grand Cherokee VIN:1J8HR58N58C213129 Please include a surplus declaration for this vehicle as part of the consent agenda. ## MG/mm 11 ## Memorandum ## TO: Todd Prafke DATE: 6/18/2026 ## City Administrator ## FROM: Perry Solheim ## Finance Director ## RE: Disbursements ## ACTION/RECOMMENDATION For your information, review, and approval. ## BACKGROUND Included in the consent agenda is a summary of the fund expenditures for disbursements made from June 5, 2026 to June 18, 2026 (totaling $1,857,421.99). ## FUND TOTALS ## 101 GENERAL FUND $99,085.63 ## 211 LIBRARY FUND $5,182.64 ## 217 COMMUNITY CENTER $3,283.27 ## 219 AMERICAN RESCUE PLAN $7,062.00 ## 230 REVOLVING LOAN FUND $184,000.00 ## 261 HOUSING REVOLVING LOANS $7,500.00 ## 471 NEW CITY HALL CIP $711,707.87 ## 601 WATER $16,593.28 ## 602 WASTEWATER FUND $39,438.81 ## 603 ENVIRO SERVICES FUND $69,237.68 ## 604 ELECTRIC FUND $700,088.39 ## 606 STORMWATER FUND $2,039.16 ## 820 RESTRICTED CONTRIBUTIONS $1,529.59 ## 830 MN RIVER VALLEY TRANSIT $10,673.67 ## GRAND TOTAL: $1,857,421.99 The City Council, department heads and select staff have received a list of the vendor details and amounts of these disbursements that total the amounts included in the main agenda packet. Please feel free to contact me if you have any questions or concerns about this agenda item. ## PS 12 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION APPROVING CONSENT AGENDA ## BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT PETER, NICOLLET ## COUNTY, MINNESOTA, THAT: 1. The following employee appointments shall be made: Name Position/Budget Wage ## Christian McCabe Part-time Transit Support Specialist $21.34 Olivia Denzer Lifeguard/WSI $19.50 2. The following licenses and permits are approved: ## Temporary Gambling Gustavus Adolphus College 800 W. College Ave. 11/2/26 ## Temporary Dance Red Men Club 412 S. 3rd Street 7/3/2026 3. The following item is declared surplus and staff is authorized to sell or dispose of it: ## • 2008 Jeep Grand Cherokee 4. The schedule of disbursements for June 5, 2026 through June 18, 2026 are approved. Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 22 th day of June, 2026. ___________________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 13 June 17, 2026 ## City of Saint Peter ## Todd Prafke, City Administrator ## Perry Solheim, Director of Finance ## 227 South Front Street ## Saint Peter, MN 56082 ## RE: 2026A General Obligation Bonds ## Honorable Mayor, Council Members, Administrator Prafke and Director Solheim: The purpose of this letter is to provide information regarding financing recommendations for the North Fourth Street, Gorman Park (Splash Pad), 2026 Equipment Certificate, and Public Works Roof Repair Project. The City has previously received bids for the proposed improvements and purchases which have been used to complete these recommendations. ## 2026A General Obligation Bonds: For the purpose of financing the projects and purchases outlined above, we would recommend the issuance of General Obligation Bonds through a competitive sale of bonds. Based on the proposed method of sale, the following costs are anticipated (not including costs paid by other funding sources): ## Gorman Park Project $1,932,985.00 ## North Fourth Street 927,220.00 ## Equipment Purchases 1,395,000.00 ## Public Works Roof 1,534,150.00 ## Underwriter’s Discount 83,930.00 Fiscal & Legal 79,250.00 ## Capitalized Interest 60,102.08 ## TOTAL PROJECT COSTS: $6,012,637.08 The funding sources to be utilized to fund project costs are summarized below: ## General Obligation Bonds $5,995,000.00 ## Construction Fund Earnings 17,637.08 ## TOTAL FUNDING SOURCES: $6,012,637.08 ## Payment and Revenue Requirements: The proposed issue initially has annual debt service payments of approximately $705,000 per year (see attached cash flow) which will be funded by a combination of tax levy, utility revenues, and special assessments. The attached cash flow presently assumes that all equipment purchases are funded with tax levy. Past practice for the City has included transfers from enterprise funds for those items purchased for the utilities. 14 The payment schedule is not level due to the various terms assigned and the availability of revenue streams for different portions of the proposed projects/purchases. The repayment terms assigned include the following: Equipment Certificate 5-yr term ## Gorman Park Project 15-yr term ## North Fourth Street 15-yr term ## Public Works Roof 15-yr term $5,995,000 General Obligation Bonds – 2026A: If the Council chooses to fund the projects/purchases in the manner proposed, David Drown Associates, Inc. recommends the costs be financed through the issuance of $5,995,000 of General Obligation Bonds through a competitive sale process. Key elements of the proposed issue include: • 16-year term overall (uneven payment schedule based on terms outlined above) • Callable 2/1/2033 • Sale of bonds utilizing a competitive sale process • We do recommend purchasing a credit rating from Standard & Poor’s ## Schedule and Issuance: The proposed schedule for putting the project financing in place is as follows: ## June 22, 2026 Initiate the Competitive Sale Process July 27, 2026 Receive Bids & Award Sale August 11, 2026 Closing (funds wired to City’s account) If the Council determines that it is appropriate to proceed with the proposed project financing it would be appropriate to act upon the enclosed resolution initiating the competitive sale process, and the resolution calling for the public hearing on the proposed tax abatement pledge for the purpose of authorizing the tax levy for the Gorman Park Project. A public hearing is required for the implementation of a tax abatement levy for debt service, and as a part of this process the public hearing notice and tax abatement resolution must list parcel identification numbers from parcels that benefit from the proposed project. Additionally, the parcels listed must pay sufficient city tax to cover the principal payments on the proposed tax abatement bonds. The parcels identified in the public hearing notice and the draft abatement resolution will include residential parcels located in proximity to Gorman Park. The issuance of tax abatement bonds does not impact the identified parcels any differently than other like properties within the community other than the City would not be able to abate the taxes on those parcels for other purposes, or create a tax increment financing district that would include those parcels during the term of the obligation. Similar authority was used for financing the Minnesota Square Park Pavilion in 2019. 15 Thank you for your time and consideration of this material. Please feel free to contact me if you would like to discuss this information in additional detail. ## Sincerely, ## Shannon Sweeney, Associate ## David Drown Associates, Inc. 16 ## City of Saint Peter, Minnesota ## Proposed for Competitive Sale ## General Obligation Improvement & Utility Revenue Bonds, Series 2026A ## Uses of Funds ## Bond Details ## Improvement Bond 433,180.00 7% ## Utility Revenue Bond 2,028,190.00 35% ## Abatement Bond 1,932,985.00 33% ## Set Sale Date 6/22/2026 ## Equipment Certificate 1,395,000.00 24% ## Sale Date 7/27/2026 ## Total Project Costs 5,789,355.00 ## Dated Date 8/11/2026 ## Underwriter's Discount Allowance 1.400% 83,930.00 ## Closing Date 8/11/2026 ## Unused Underwriter's Discount Allowance - ## 1st Interest Payment 2/1/2027 ## Fiscal Fee 32,000.00 Proceeds spent by: 12/31/2027 ## Bond Counsel 23,000.00 ## to Dated Date ## Printing & Misc 2,000.00 ## Purchase Price 5,911,070.00 ## Paying Agent 850.00 ## Net Interest Cost 1,818,100.21 ## Rating Agency 21,400.00 ## Net Effective Rate 3.7829% ## Capitalized Interest 60,102.08 ## Average Coupon 3.6083% ## Accrued Interest - ## Yield ## TBD ## Rounding - ## Average Life 8.017 6,012,637.08 ## Call Option 2/1/2033 ## Purchaser ## Proposed for Competitive Sale ## Sources of Funds ## Bond Counsel ## Taft ## Bond Issue 5,995,000.00 ## Pay Agent US Bank, N.A. ## Construction Fund Earnings 17,637.08 ## Tax Status ## Tax Exempt - Bank Qualified ## Cash Contribution - ## Continuing Disclosure ## Full 6,012,637.08 ## Rebate ## Subject to Rebate ## Statutory Authority ## M.S. 412, 429, 444, 469 & 475 ## Payment Schedule & Cashflow ## Account Balances 12-Month ## Interest ## Payment plus 5% ## Collection ## Tax ## Water ## Wastewater ## Storm Sewer ## Special ## Surplus ## Account ## P eriod endin g ## Principal ## Rate ## Interest ## Total ## Coverage ## Year ## Levy ## Revenues ## Revenues ## Revenues ## Assmts (deficit) ## Balance 8/ 11 /2026 - - - Capitalized & accrued interest > 60,102 2/1/2027 - 2.75% 94,495 94,495 96,215 2026 - 3,611 15,167 17,334 - (60,102) - 2/1/2028 490,000 2.75% 200,108 690,108 724,613 2027 543,139 18,147 76,219 87,108 - - - 2/1/2029 520,000 2.85% 186,633 706,633 741,964 2028 546,994 18,384 77,211 88,242 11,133 - - 2/1/2030 535,000 2.90% 171,813 706,813 742,153 2029 550,325 18,069 75,892 86,733 11,133 - - 2/1/2031 555,000 3.00% 156,298 711,298 746,862 2030 552,982 18,275 76,754 87,719 11,133 - - 2/1/2032 565,000 3.00% 139,648 704,648 739,880 2031 544,214 18,453 77,504 88,575 11,133 - - 2/1/2033 265,000 3.10% 122,698 387,698 407,082 2032 215,039 18,091 75,982 86,837 11,133 - - 2/1/2034 275,000 3.20% 114,483 389,483 408,957 2033 215,407 18,242 76,615 87,560 11,133 - - 2/1/2035 280,000 3.25% 105,683 385,683 404,967 2034 210,199 18,363 77,126 88,145 11,133 - - 2/1/2036 295,000 3.35% 96,583 391,583 411,162 2035 215,409 18,462 77,540 88,617 11,133 - - 2/1/2037 305,000 3.75% 86,700 391,700 411,285 2036 214,856 18,530 77,824 88,942 11,133 - - 2/1/2038 315,000 3.75% 75,263 390,263 409,776 2037 213,412 18,523 77,797 88,911 11,133 - - 2/1/2039 325,000 3.90% 63,450 388,450 407,873 2038 211,771 18,497 77,687 88,785 11,133 - - 2/1/2040 340,000 3.90% 50,775 390,775 410,314 2039 214,900 18,428 77,398 88,455 11,133 - - 2/1/2041 355,000 4.00% 37,515 392,515 412,141 2040 217,620 18,339 77,023 88,026 11,133 - - 2/1/2042 365,000 4.00% 23,315 388,315 407,731 2041 214,470 18,213 76,494 87,421 11,133 - - 2/1/2043 210,000 4.15% 8,715 218,715 229,651 2042 32,610 18,591 78,081 89,236 11,133 - - 5,995,000 1,734,170 7,729,170 8,112,624 4,913,346 297,218 1,248,314 1,426,644 167,001 - $5,995,000 ## Payment Schedule ## Pledged Revenues David Drown Associates, Inc. ## Cash Flow ~ Prelim 17 ## City of St. Peter, MN ## 2026A Combined Debt Issue 211 ## Library 217 ## Com Ctr 601 ## Water 602 ## Wastewater 604 ## Electric 606 ## Stormwater ## Property ## Assessments ## Parks Streets Fire PW Admin Assessment Gorman Park1,932,985 1,932,985 N. 4th Street927,220 233,299 314,700 107,408 51,955 106,908 112,950 ## EQC (2025)682,000 225,000 147,000 310,000 EQC (2026)713,000 140,000 280,000 120,000 23,000 150,000 Public Works Roof1,534,150 177,961 744,063 434,164 177,961 Total Exp.5,789,355 2,297,985 838,261 120,000 767,063 314,700 150,000 310,000 541,572 51,955 177,961 106,908 112,950 % Share39.7%14.5%2.1%13.2%5.4%2.6%5.4%9.4%0.9%3.1%1.8%2.0% ## Underwriter's Discount83,930 ## Fiscal & Legal79,250 ## Capitalized Interest60,102 ## Debt Balance6,012,637$ 211 ## Library 217 ## Com Ctr 601 ## Water 602 ## Wastewater 604 ## Electric 606 ## Stormwater ## Property ## Assessments ## Debt Service ## Parks Streets Fire PW Admin Assessment 39.7%14.5%2.1%13.2%5.4%2.6%5.4%9.4%0.9%3.1%1.8%2.0% Capitalized Interest60,102 23,856$ 8,702$ 1,246$ 7,963$ 3,267$ 1,557$ 3,218$ 5,622$ 539$ 1,848$ 1,110$ 1,173$ 2028490,000 194,497 70,949 10,157 64,923 26,636 12,696 26,238 45,838 4,397 15,062 9,048 9,560 2029520,000 206,405 75,293 10,778 68,898 28,266 13,473 27,844 48,644 4,667 15,984 9,602 10,145 2030535,000 212,359 77,464 11,089 70,885 29,082 13,862 28,647 50,047 4,801 16,446 9,879 10,438 2031555,000 220,298 80,360 11,504 73,535 30,169 14,380 29,718 51,918 4,981 17,060 10,249 10,828 2032565,000 224,267 81,808 11,711 74,860 30,712 1 4,639 30,254 52,854 5,070 17,368 10,433 11,023 2033265,000 105,187 38,370 5,493 35,111 14,405 6,866 14,190 24,790 2,378 8,146 4,894 5,170 2034275,000 109,157 39,818 5,700 36,436 14,949 7,125 14,725 25,725 2,468 8,453 5,078 5,365 2035280,000 111,141 40,542 5,804 37,099 15,220 7,255 14,993 26,193 2, 513 8,607 5,171 5,463 2036295,000 117,095 42,714 6,115 39,086 16,036 7,643 15,796 27,596 2,647 9,068 5,448 5,755 2037305,000 121,065 44,162 6,322 40,411 16,579 7,902 16,332 28,532 2,737 9,376 5,632 5,951 2038315,000 125,034 45,610 6,529 41,736 1 7,123 8,162 16,867 29,467 2,827 9,683 5,817 6,146 2039325,000 129,003 47,058 6,737 43,061 17,666 8,421 17,403 30,403 2,917 9,990 6,002 6,341 2040340,000 134,957 49,230 7,047 45,048 18,482 8,809 18,206 31,806 3,051 10,451 6,279 6,633 2041355,000 140,911 51,402 7,358 47,036 19,297 9,198 19,009 33,209 3,186 10,912 6,556 6,926 2042365,000 144,880 52,850 7,566 48,361 19,841 9,457 19,544 34,144 3,276 11,220 6,740 7,121 2043210,000 83,356 30,407 4,353 27,824 11,415 5,441 11,245 19,645 1,885 6,455 3,878 4,097 6,055,102 2,403,469 876,739 125,508 802,273 329,146 156,885 324,230 566,432 54,340 1 86,130 111,815 118,135 ## 101 General Fund ## 101 General Fund 18 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION CALLING A PUBLIC HEARING ON PROPERTY TAX ABATEMENT AND THE ## ISSUANCE OF BONDS ## NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT ## PETER, NICOLLET COUNTY, MINNESOTA, THAT: Section 1. Background. 1.01. The City intends to undertake certain improvements in the community to construct a splash pad in Gorman Park (the “Project”) within the jurisdiction of the City. 1.02. In order to finance the Project, the City is considering authorizing a property tax abatement (the “Abatement”) and issuing general obligation tax abatement bonds, pursuant to Minnesota Statutes, Sections 469.1812 through 469.1815, as amended (the “Abatement Act”). 1.03. Under Section 469.1813, Subdivision 5 of the Abatement Act, the City must hold a public hearing prior to approval of the Abatement and issuance of bonds. 1.04. The Council has determined to hold the required public hearing and consider the terms of the Abatement and the issuance of bonds. Section 2. Public Hearing. 2.01. The Council directs City staff and consultants to determine the terms of the Abatement and to prepare an Abatement resolution for consideration by the Council at a public hearing on July 27, 2026. The total estimated amount of the Abatement is $2,030,000, to be collected over a term of up to 15-years. 2.02. The City Administrator is authorized and directed to publish a notice in a newspaper of general circulation in the City announcing a public hearing on the Abatement before the Council on July 27, 2025, at or after 7:00 p.m. The notice shall be published at least once, more than 10 days but less than 30 days before the public hearing, and shall be in substantially the form attached as Exhibit A to this Resolution. Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 22nd day of June, 2026. ___________________________________ ## Shanon A. Nowell ## Mayor 19 ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 20 ## EXHIBIT A ## ABATEMENT PROPERTY ## NOTICE OF PUBLIC HEARING ON TAX ## ABATEMENT AND ISSUANCE OF BONDS NOTICE IS HEREBY GIVEN that the City Council of the City of Saint Peter, Minnesota (the “City”) will meet at or after 7:00 p.m. on Monday, July 27, 2026 at the Saint Peter Community Center, 600 South Fifth Street, Saint Peter, Minnesota, to conduct a public hearing to consider granting a property tax abatement (the “Abatement”) under Minnesota Statutes, Sections 469.1812 through 469.1815, as amended, to finance the costs of improving the Gorman Park Splash Pad located in the City, the (“Project”), which improvements will benefit certain property in the City (the “Property”). The Property is described as follows: ## INSERT PARCEL ID#s HERE The total amount of the proposed Abatement is estimated to be $2,030,000, collected over a period of up to 15-years. The City proposes to issue General Obligation Tax Abatement Bonds in the amount not to exceed $2,030,000 to finance the Project. A draft copy of the Abatement resolution containing the terms of the Abatement will be on file at City Hall and available for public inspection on and after the date of this notice. Any person wishing to express an opinion on the matters to be considered at the public hearing will be heard orally or in writing. Dated: June 22, 2026. ## CITY OF SAINT PETER, MINNESOTA /s/Todd Prafke ___________________ ## City Administrator 21 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $5,995,000 ## GENERAL OBLIGATION BONDS, SERIES 2026A WHEREAS, the City Council of the City of Saint Peter, Minnesota, has heretofore determined that it is necessary and expedient to issue the City's $5,995,000 General Obligation Bonds, Series 2026A (the "Bonds"), to finance the North Fourth Street Project, 2026 Equipment Certificate, Gorman Park Splash Pad, and the Public Works Roof Project; and WHEREAS, the City has retained David Drown Associates, in Minneapolis, Minnesota ("David Drown"), as its independent municipal advisor for the Bonds and David Drown therefore is authorized to sell the Bonds by a competitive negotiated sale in accordance with Minnesota ## Statutes, Section 475.60, Subdivision 2(9): ## NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT ## PETER, NICOLLET COUNTY, MINNESOTA, THAT: Authorization. The Council hereby authorizes David Drown to solicit bids for the competitive negotiated sale of the Bonds. Meeting; Bid Opening. The Council shall meet at the time and place specified in the Terms of Offering attached hereto as Exhibit A for the purpose of considering sealed bids for, and awarding the sale of, the Bonds. The City Administrator, or designee, shall open bids at the time and place specified in such Terms of Offering. Terms of Offering. The terms and conditions of the Bonds and the negotiation thereof are fully set forth in the "Terms of Offering" attached hereto as Exhibit A and hereby approved and made a part hereof. Official Statement. In connection with said competitive negotiated sale, the officers or employees of the City are hereby authorized to cooperate with David Drown and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 22nd day of June, 2026. ___________________________________ ## Shanon A. Nowell ## Mayor 22 ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 23 ## APPENDIX A ## City of Saint Peter, Minnesota $5,995,000 ## General Obligation Bonds, Series 2026A ## (BOOK ENTRY ONLY) ## Terms of Proposal Proposals for the Bonds will be received on Monday, July 27, 2026 at 11:00 a.m. Central Time, at the offices of David Drown Associates, Inc., 5029 Upton Avenue South, Minneapolis, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, on that same date. ## SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (612) 605-2375 to David Drown Associates, Inc. Signed Proposals, without final price or coupons, may be submitted to David Drown Associates, Inc. prior to the time of sale. The bidder shall be responsible for submitting to David Drown Associates, Inc. the final Proposal price and coupons, by telephone (612) 920-3320 or fax (612) 605-2375 for inclusion in the submitted Proposal. David Drown Associates, Inc. will assume no liability for the inability of the bidder to reach David Drown Associates, Inc. prior to the time of sale specified above. Notice is hereby given that electronic proposals will be received via PARITY ® , in the manner described below, until 11:00 A.M., Central Time on July 27, 2026. Bids may be submitted electronically via PARITY ® pursuant to this Notice until 11:00 A.M., Central Time, but no bid will be received after the time for receiving bids specified above. To the extent any instructions or directions set forth in PARITY ® conflict with this Notice, the terms of this Notice shall control. For further information about PARITY ® , potential bidders may contact David Drown Associates, Inc. or PARITY ® a t (212) 806-8304. Neither the City of Saint Peter nor David Drown Associates, Inc. assumes any liability if there is a malfunction of PARITY. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner of the Proposal submitted. ## DETAILS OF THE BONDS The Bonds will be dated August 11, 2026, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2027. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature February 1 in the years and amounts as follows: ## Year Amount ## Year Amount 2028 $ 490,000 2036 $ 295,000 2029 $520,000 2037 $305,000 24 2030 $535,000 2038 $315,000 2031 $555,000 2039 $325,000 2032 $565,000 2040 $340,000 2033 $265,000 2041 $355,000 2034 $275,000 2042 $365,000 2035 $280,000 2043 $210,000 ## TERM BOND OPTION Bids for the bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption and must conform to the maturity schedule set forth above at a price of par plus accrued interest to the date of redemption. In order to designate term bonds, the bid must specify as provided on the Proposal Form. ## BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. ## REGISTRAR The City will name U.S. Bank Trust Company, National Association., St. Paul, MN, as registrar for the Bonds. U.S. Bank Trust Company, National Association shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. ## OPTIONAL REDEMPTION The City may elect on February 1, 2033 and on any day thereafter, to prepay Bonds due on or after February 1, 2034. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. 25 ## SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge tax levies, revenues from its water, wastewater, and storm sewer utilities, and special assessments to benefitted properties. The proceeds will be used to finance the North Fourth Street Project, 2026 Equipment Certificate, Gorman Park Splash Pad, and the Public Works Roof Project. ## TYPE OF PROPOSALS Proposals shall be for not less than $5,911,070.00 (98.6%) and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $119,900.00 payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and pre-approved by the City. Such bond must be submitted to David Drown Associates, Inc. Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to David Drown Associates, Inc. in the form of a certified or cashier's check or wire transfer as instructed by David Drown Associates, Inc. not later than 3:00 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. ## AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a net interest cost (NIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, reject all proposals without cause, and reject any proposal which the City determines to have failed to comply with the terms herein. ## MATURITY ADJUSTMENTS The City reserves the right to increase or decrease the principal amount of the Bonds on the day of sale, in increments of $5,000 each. Increases or decreases may be made in any maturity. If any principal amounts are adjusted, the purchase price proposed will be adjusted to maintain the same gross spread per $1,000. 26 ## ISSUE PRICE DETERMINATION In order to provide the City with information necessary for compliance with Section 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder (collectively, the “Code”), the Purchaser will be required to assist the City in establishing the issue price of the Bonds and shall complete, execute, and deliver to the City prior to the closing date, a written certification in a form acceptable to the Purchaser, the City, and Bond Counsel (the “Issue Price Certificate”) containing the following for each maturity of the Bonds (and, if different interest rates apply within a maturity, to each separate CUSIP number within that maturity): (i) the interest rate; (ii) the reasonably expected initial offering price to the “public” (as said term is defined in Treasury Regulation Section 1.148-1(f) (the “Regulation”)) or the sale price; and (iii) pricing wires or equivalent communications supporting such offering or sale price. However, such Issue Price Certificate may indicate that the Purchaser has purchased the Bonds for its own account in a capacity other than as an underwriter or wholesaler, and currently has no intent to reoffer the Bonds for sale to the public. Any action to be taken or documentation to be received by the City pursuant hereto may be taken or received on behalf of the City by David Drown Associates, Inc. The City intends that the sale of the Bonds pursuant to this Terms of Offering shall constitute a “competitive sale” as defined in the Regulation based on the following: i. the City shall cause this Terms of Offering to be disseminated to potential bidders in a manner that is reasonably designed to reach potential bidders; ii. all bidders shall have an equal opportunity to submit a bid; iii. the City reasonably expects that it will receive bids from at least three bidders that have established industry reputations for underwriting municipal bonds such as the Bonds; and iv. the City anticipates awarding the sale of the Bonds to the bidder who provides a proposal with the lowest net interest cost, as set forth in this Terms of Offering (See “AWARD” herein). Any bid submitted pursuant to this Terms of Offering shall be considered a firm offer for the purchase of the Bonds, as specified in the proposal. The Purchaser shall constitute an “underwriter” as said term is defined in the Regulation. By submitting its proposal, the Purchaser confirms that it shall require any agreement among underwriters, a selling group agreement, or other agreement to which it is a party relating to the initial sale of the Bonds, to include provisions requiring compliance with the provisions of the Code and the Regulation regarding the initial sale of the Bonds. If all requirements of a “competitive sale” are not satisfied, the City shall advise the Purchaser of such fact prior to the time of award of the sale of the Bonds to the Purchaser. In such event, any proposal submitted will not be subject to cancellation or withdrawal. Within twenty-four (24) hours of the notice of award of the sale of the Bonds, the Purchaser shall advise the City and David Drown Associates, Inc. if a “substantial amount” (as defined in the Regulation) of any maturity of the Bonds (and, if different interest rates apply within a maturity, to each separate CUSIP number within that maturity) has been sold to the public and the price at which such substantial amount was sold. The City will treat such sale price as the “issue price” for such maturity, applied on a maturity-by-maturity basis. The City will not require the Purchaser to comply with that portion of the Regulation commonly described as the “hold-the-offering-price” requirement for the remaining maturities, but the Purchaser may elect such option. If the Purchaser exercises such option, the City will apply the initial offering price to the public provided 27 in the proposal as the issue price for such maturities. If the Purchaser does not exercise that option, it shall thereafter promptly provide the City and David Drown Associates, Inc. the prices at which a substantial amount of such maturities are sold to the public; provided such determination shall be made and the City and David Drown Associates, Inc. notified of such prices not later than three (3) business days prior to the closing date. ## BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. ## CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The purchaser shall pay the CUSIP Service Bureau charge for the assignment of CUSIP identification numbers. ## SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of bond counsel, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. ## FULL CONTINUING DISCLOSURE On the date of the actual issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure Undertaking where under the City will covenant to provide, or cause to be provided, annual financial and operating information, including audited financial statements of the City, and notices of certain material events, as specified in and required by SEC Rule 15c2- 12(b)(5). ## OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of 28 the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, David Drown Associates, Inc., 5029 Upton Avenue South, Minneapolis, Minnesota 55410, and telephone (612) 920-3320. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 90 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated: June 22, 2026 BY ORDER OF THE CITY COUNCIL ## /s/ Todd Prafke ## City Administrator 29 ## Memorandum ## TO: Todd Prafke DATE: 6/18/2026 ## City Administrator ## FROM: Benjamin Baker ## Community Development Director ## RE: Unforeseen Circumstances Micro Loan Program Applications ## ACTION / RECOMMENDATION Approve a Resolution, providing for three (3) Unforeseen Circumstances Micro Loan Program loans from El Agave Restaurant, River Rock Kitchen & Baking Co., and Paddlefish Brewing Company. ## BACKGROUND On April 13, 2026, the City Council approved the “Unforeseen Circumstances Loan Program”, and they allocated $100,000 to support the newly created program. The new program was advertised and talked about with local businesses. To date, the City has received three (3) applications from the following businesses: ## Loan Request Financials Provided ## 1. El Agave $10,000 Yes ## 2. River Rock Baking Co $10,000 Yes ## 3. Paddlefish Brewing Co $10,000 Yes Although there has been interest from other businesses, no other applications have been received. ## Recommendation Application and financial information was provided to both the EDA Loan Review Committee and to the EDA Members. At their meeting on June 4, 2026, the EDA recommended approval of the three (3) applications, each for $10,000. ## FISCIAL IMPACT If all three (3) no-interest loan applications are approved ($10,000 x 3), there will be $70,000 remaining in the program budget. Similar to the COVID-19 Hospitality Loan Program, applicants will be required to make monthly payments of $100 until the loan is retired in a little over 8 years. 30 ## ALTERATIVES / VARIATIONS Do not act: Staff will await further direction from the City Council. Negative Vote: The applicants will be notified of the City Council’s decision. Modification of the Resolution: This is always an option of the City Council. Please feel free to contact me if you have any questions or concerns about this agenda item. ## BB 31 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 – ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION APPROVING APPLICATIONS FOR THE UNFORESEEN ## CIRCUMSTANCES MICRO LOAN PROGRAM WHEREAS, the Economic Development Authority (EDA) administers the City’s Revolving Loan Programs; and WHEREAS, the City of Saint Peter recognized the need to assist Saint Peter businesses with immediate cash flow needs resulting from the loss of business revenues due to unforeseen circumstances, such as natural disasters, infrastructure failures, public health crises, sudden regulatory or legal changes, localized emergencies, and other similar events directly impacting businesses within the community; and WHEREAS, the EDA and City Council agreed that it is advantageous to create a new loan program titled: “Unforeseen Circumstances Micro Loan Program”, to help provide prompt relief to local businesses experiencing an unexpected financial hardship related to the aforementioned unforeseen circumstances; and WHEREAS, program guidelines have been established to clarify loan eligibility, loan terms, loan security, and ensure fairness and avoid discrimination in the application of loan procedures; and WHEREAS, the EDA and City Council seeded the new loan program with an initial $100,000 budget from the Revolving Loan Fund, and they plan to monitor the utilization and demand for the program; and WHEREAS, on March 26, 2026, the EDA reviewed and recommended approval of a Resolution, establishing a new loan program titled: “Unforeseen Circumstances Micro Loan Program”, and WHEREAS, on April 13, 2026, the City Council reviewed and approved a Resolution, establishing a new loan program titled: “Unforeseen Circumstances Micro Loan Program”; and WHEREAS, the City advertised and talked with local businesses about the new program; and WHEREAS, the City received three (3) complete applications; and WHEREAS, the EDA Loan Review Committee reviewed all three (3) applications and associated financial documents; and WHEREAS, the EDA recommended approval of all three (3) loan applications at their June 4, 2026 meeting. ## NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT ## PETER, NICOLLET COUNTY, MINNESOTA, THAT: 32 The following businesses shall be awarded an Unforeseen Circumstances Micro Loan: 1. El Agave $10,000 ## 2. River Rock Kitchen & Baking Company $10,000 ## 3. Paddlefish Brewing Company $10,000 Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 22 nd day of June, 2026. ___________________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 33 ## Memorandum ## TO: Todd Prafke DATE: 6/18/2026 ## City Administrator ## FROM: Benjamin Baker ## Community Development Director RE: Financial Support Request for Community Land Trust Housing Projects – SWMHP ## ACTION / RECOMMENDATION Approve a Resolution committing new financial support in the amount of $57,200 to Southwest Minnesota Housing Partnership (SWMHP) for two (2) new CLT homes in Traverse Green. ## BACKGROUND The City previously approved the following nine (9) SWMHP housing projects: ## CLT - New Homes ## Address Status Land Cash Total 1 2103 Lunden Street Constructed $31,400 $13,600 $45,000 2 2115 Lunden Street Constructed $31,400 $13,600 $45,000 3 2114 Nelson Street Constructed $31,400 $13,600 $45,000 4 2109 Lunden Street Not Funded by State $31,400 $13,600 $45,000 5 2108 Nelson Street Not Funded by State $31,400 $13,600 $45,000 ## CLT – Acquisition/Rehab ## Address Status Land Cash Total 6 In-Process $0 $50,000 $50,000 7 In-Process $0 $50,000 $50,000 ## New Market Rate Homes ## Address Status Land Cash Total 8 2105 Lunden Street Constructed $31,400 $0 $31,400 9 2113 Lunden Street Constructed $31,400 $0 $31,000 On February 9, 2026, the City Council approved a Resolution: 1) continuing its commitment to the $387,800 in financial help (land/cash) to SWMHP for the nine (9) housing projects, and 2) providing flexibility to move the cash over to the two (2) new market rate homes. 34 SWMHP has decided to move $27,200 ($13,600 x 2) from the future CLT Homes (not funded by state) to help lower the price on the two (2) market rate homes. ## CLT – New Homes – Previous Request ## Address Status Land Cash Total 4 2109 Lunden Street Not Funded by State $31,400 $13,600 $45,000 5 2108 Nelson Street Not Funded by State $31,400 $13,600 $45,000 ## TOTAL $62,800 $27,200 NOTE: The original $27,200 is being moved over to the two (2) market rate homes to help assist in lowering the home purchase price and affordability. ## CLT – New Homes – New Request ## Address Status Land Cash Total 4 2109 Lunden Street - $31,400 $28,600 $60,000 5 2108 Nelson Street - $31,400 $28,600 $60,000 ## TOTAL $62,800 $57,200 $120,000 The housing fund has approximately over $900,000 accrued for current and future housing projects, including but not limited to: • CLT, Market Rate Homes, and Prosperity Homes - SWMHP ## • New Homes - Habitat for Humanity • Mobile Home Buy Out Program and Green Valley & Marwey Improvements ## • Older Home Rehab - MVAC Financial commitments from the State of Minnesota and Nicollet County are also being sought by SWMHP. Additional funding is not guaranteed, but a $60,000 commitment from the City will make for a competitive application. City Staff Recommends: 1) recommitting $62,800 in Land (previously approved), and committing $57,200 in Cash, to SWMHP for the new CLT homes to be built at 2109 Lunden Street and 2108 Nelson Street located within the Traverse Green Subdivision. The City Council reviewed and discussed this request at their June 1, 2026 Workshop Meeting. ## FISCAL IMPACT: There are resources available in the City’s Housing Fund (see above). This represents a $57,200 ($28,600 per lot/home) total increase over the originally committed amount to SWMHP, in 2023- 2024, for their nine (9) home projects, including: 5 new CLT homes, 2 acquisition/rehab CLT homes, and 2 market rate homes. An additional $57,200 will be directed from the City’s Housing Fund to help fund the construction of (2) new CLT homes by SWMHP. ## ALTERNATIVES & VARIATIONS: Do not act: City Staff will wait for additional direction. Negative vote: No further action will be taken. Modification of the Resolutions: The Council may choose to modify the resolution at any time. Please feel free to contact me if you have any questions or concerns about this agenda item. ## BB 35 ## CURRENT HOMES 4 ## PRICE $201,000-$241,000 ## FAMILIES 3 ## First Application ## St. Peter Commitment: $45,000 for 1 New Construction Home ## Nicollet County: $10,000 ## MN Housing: $141,900 ## Total Additional Funds: $151,900 ## St. Peter Commitment: $100,000 for 2 Acquisition/Rehab Homes ## Nicollet County: $10,000 ## MN Housing: $146,000 ## Total Additional Funds: $156,000 ## Second Application ## St. Peter Commitment: $90,000 for 2 New Construction Homes ## Nicollet County: $20,000 ## MN Housing: $290,900 ## Total Additional Funding: $310,900 ## Saint Peter’s Total Investment: $225,000 ## Additional Fund Brought to the Community: $618,800 ## UPDATES ## PCLT IN ST. PETER ## Expanding Community Investment ## 2026 APPLICATION ## 2 NEW CONSTRUCTION HOMES ## PCLT Communities ## $60,000 IN LOCAL SUPPORT ## ANTICIPATED NEED PER HOME FOR ## A COMPETATIVE APPLICAITON Creating permanent affordability through one-time public investment 36 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## DESIGNATION OF FUNDS FOR COMMUNITY LAND TRUST HOUSING PROJECTS ## BY SOUTHWEST MINNESOTA HOUSING PARTNERHSIP WHEREAS, for the last two decades, the City of Saint Peter (City) has partnered with Southwest Minnesota Housing Partnership (SWMHP) on multiple housing projects around town; and WHEREAS, over the years, the City has accumulated and set aside over $900,000 in housing funds; and WHEREAS, in 2023 and 2024 the City committed initial funding for the new Community Land Trust (CLT) Program managed by SWMHP; and WHEREAS, SWMHP did not receive funding from the State of Minnesota for two (2) of the proposed CLT homes, in which the City committed $90,000 ($45,000 per lot/home); and WHEREAS, on February 9, 2026, the City Council provided SWMHP the option of moving $27,200 from the unfunded CLT homes to help lower the price on recently constructed SWMHP homes, and WHEREAS, in preparation for an upcoming proposal submittal, SWMHP has requested additional financial support, in the amount of $120,000 ($60,000 per lot/home) from the City for the construction of two (2) new CLT homes in Traverse Green; and WHEREAS, at their June 1, 2026 Workshop Meeting, the City Council reviewed and discussed the proposed request from SWMHP; and WHEREAS, based on the City’s goal of creating affordable housing and more housing options, all the Council Members agreed with request by SWMHP to construct two (2) new CLT homes. ## NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT ## PETER, NICOLLET COUNTY, MINNESOTA, THAT: 1. The City commits to helping construct two (2) new homes in Traverse Green by providing a total commitment of funds of $57,000 for additional CLT homes located at 2109 Lunden Street and 2108 Nelson Street. 2. The City Administrator and Finance Director are authorized to release the housing funds. Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 22 nd day of June, 2026. 37 ___________________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 38 ## Memorandum ## TO: Todd Prafke DATE: 6/18/2026 ## City Administrator ## FROM: Benjamin Baker ## Community Development Director ## RE: 1225 S Washington Ave Development Update ## ACTION/RECOMMENDATION Approve an updated Purchase agreement and provide a grant with ALH Land Company for the sale of property located at 1225 S Washington Ave. (Presidents Corner). ## BACKGROUND In 1854, the Original Plat of St. Peter was filed which dedicated three (3) public squares to the public use including Minnesota Square, Washington Square (Community Center), and Jefferson Square. An Amended Plat of Saint Peter was filed in 1859 since the Original Plat failed to establish section line or corner posts. The Amended Plat also established the same three (3) public squares. In the 1800s, a railroad was built which ran through the eastern portion of Jefferson Square. When the railroad terminated its service in the 1900s, the railroad sold its abandoned line/land, which once included a train depot, to H.W. Komatz. In 1965 H.W. Komatz sought a Quiet Title Action in District Court to declare H.W. Komatz to be the owner of all of Jefferson Square except for the westerly 122 ft. The westerly 122 ft. of the square was used as a municipal well/water filtration plant. After 1965, the easterly 208 ft. of Jefferson Square was developed into multiple residential structures, including two (2) single-family homes, a duplex/apartment, and four (4) townhome units. In 2010, the City of Saint Peter replaced the Jefferson Avenue Water Filtration Plant, at 1225 S Washington Avenue, with a new state-of-the-art reverse-osmosis water treatment plant, constructed just north of Gustavus Adolphus College at 1801 Broadway Avenue. Therefore, in 2011, the old water filtration plant was demolished, and the on-site wells were sealed. For the past 15 years, the land has been left vacant (maintained grass) and turned into a seldom used public property. In May 2024, Adam Huiras, ALH Land Company, submitted an offer on the subject property, proposing: 1) duplexes/townhomes up to eleven (11) units, or 2) multi-family residential up to fourteen (14) units. Due to construction timing issues, the project was put on hold by Huiras. 39 In March 2025, Huiras submitted a revised offer for the subject property. That offer showed the site developing into four (4) residential twin-homes (8-units) with walk-out basement/garages, taking advantage of the sloping hillside. On May 12, 2025, the City Council approved a Purchase agreement. On December 8, 2025, the City Council reviewed an alternative design, submitted by Huiras, showing two (2) townhome buildings, that would hold up to eleven (11) units. Although the City Council was favorable moving forward with either development proposal, the developers decided to proceed with the original idea due to construction costs. In January 2026, the City signed an updated purchase agreement with ALH Land Company and Fox Valley Property’s, extending the closing date deadline to May 31, 2026. Closing did not take place because of 2009 financing obligation with the State of Minnesota. ## Proposed Development The proposed development site will contain four (4) separate buildings/twin-homes (8 total units). Each building will host two (2) homes, including the following items: 1 front porch 1 kitchen 3 bathrooms 1 living room 3 bedrooms 1 utility/storage room 1 dining room 1 office (or bedroom) 2-stall garage (attached) Staff has worked through a number of issues on this site. The remaining barrier to a potential sale is that, without further action, the City is prohibited from selling this property for 40 years unless it obtains consent from the Minnesota Management & Budget Department, due to the State loan and grant funds previously used for a project on this site. That project was for the removal of a water treatment building and closure of the well on the property t hat was funded in 2009. At that time the City of Saint Peter was awarded $19.7 million in bond and grant funds for the Clean Water/Drinking Water Revolving Fund Program from the Minnesota Public Facilities Authority (PFA) to help finance the following: • New Broadway WTP - $16.7 million (20-year loan at 2.7%) • Old Jefferson WTP and Watermain - $2 million (principal forgiveness) • St Julien Plant - $0.9 million (principal forgiveness) To be able to meet the requirements, sell the land, put it into a property tax and utility paying status, and receive approval from the State of Minnesota, t he City must follow and submit applicable items listed in the General Obligation Compliance Checklist for Sale of G.O. Bond Financed Properties. These items include: 1) a signed Resolution stating “that the Subject Property is no longer usable or needed to carry out the governmental purpose for which it was originally acquired, constructed, or bettered”, and 2) a sale of the property at fair market value, based on an appraisal by a certified appraiser. The sale price agreed to was slightly over $64,000. That means that a grant of about $36,000 would be provided for the sale and title to be cleared for closing. The proposed resolutions do all these things. Once submitted to the Capital Bonding Coordinator, it can take up to 60 days for the State to process the information for release. Along with the Compliance Checklist, the City will need to pay the State $100,000, which is the appraised value of the Subject Property. 40 ## Timeline for Issue Resolution June 2026 o City Council approves a Resolution, declaring the property is not needed o City Council approves a modified Purchase Agreement providing for the $100,000 sale amount as set by the appraiser o Grant approval with funds from the Water Fund to the developer to provide the agreed upon resources which meet the State requirements, namely meeting the $100,000 sale appraisal threshold o Compliance Checklist and documents submitted to State of Minnesota o City sends $100,000 to the State of Minnesota August 2026 o Commissioner of Minnesota Management & Budget consents to the property sale o Closing on property ## Project Timeline June-July 2026 o Building Permit and Civil Plans Submitted to City for review August-September 2026 o Closing on property o Grading and utility work o Footing and foundation work on new homes October-November 2026 o Enclosed new homes before winter weather arrives December 2026 – April 2027 o Complete construction of new homes The City Council reviewed and discussed this matter at their 6/16/26 City Council Workshop. ## FISCAL IMPACT: The City will pay the State of Minnesota $100,000, the appraised value of the subject property, as required by the Public Finance Agency (PFA) when applicable property is sold. The City will provide a grant of $35,954 (difference between the appraised value and approved purchase agreement) to the developer pay for up-front costs and engineering work already incurred. ## ALTERNATIVES & VARIATIONS: Do not act: Staff will wait for additional direction. Negative vote: No further action will be taken. Modification of the Resolutions: The Council may choose to modify the resolution at any time. Please feel free to contact me should you have any questions or concerns on this agenda item. ## BB 41 ## CITY OF ST. PETER ## PRESIDENTS CORNER DEVELOPMENT GRANT ## DEFERRED LOAN REPAYMENT AND MORTGAGE __________________________________________________________________ THIS AGREEMENT, made and entered into this _____ day of __________, 2020, by and between ALH Land Company, LLC, a Minnesota Limited Liability Company and Fox Vallery Property’s Limited Liability Company, a Minnesota Limited Liability Company (hereinafter collectively referred to as “Developer”), and the City of St. Peter, a public body corporate and politic of the State of Minnesota, having its principal office at 227 South Front Street, St. Peter, Minnesota 56082- 2538 (hereinafter referred to as “City”); WHEREAS, City has paid Thirty Five Thousand Nine Hundred Fifty Four and no/100ths Dollars ($35,954.00) on Developer’s behalf as a Grant for the development of property purchased from the City, owned and occupied by Developer (hereinafter referred to as “the Grant”), the receipt and sufficiency of which is hereby acknowledged by Developer primarily to develop said real estate, as set forth in the Development Agreement between the parties, being legally described below; and WHEREAS, Developer and City desire to set forth herein the provisions for Developer’s repayment of the Grant, and to provide for securing said repayment with a mortgage on the property described below (hereinafter referred to as “the Mortgage”). NOW, THEREFORE, in consideration of said Grant, the parties hereto do hereby agree as follows: 42 1. Developer covenants and agrees with City to pay to the order of the City the principal sum of the Grant, at the office of the City in St. Peter, Minnesota, or at such other place as City may designate in writing delivered or mailed to the Developer, upon the occurrence of any of the following events within the period of two (2) years after the date of the Grant as set forth above: a. Unless assumed as provided in paragraph 7, if the real estate hereinafter described is sold, transferred or otherwise conveyed (whether by deed, contract for deed, or otherwise); or b. If the development is not completed as approved by the City and all applicable building codes, standards or regulations established by any municipal, state or federal ordinance, statute or rule within two (2) years. Absent the occurrence of the events set forth in paragraph 1(a)-(d) above, within two (2) years after the date of the Grant as set forth above, upon the commencement of the third (3 rd ) year after the said date of the Grant, Developer, at that time and at any time thereafter, shall have no obligation to repay the Grant or any part thereof to City. Repayment of the Grant as required under the terms of this paragraph 1 shall be made to City not later than the date of the sale, transfer or other conveyance referred to in paragraph 1(a), above which day is hereby designated for the purposes of this Agreement as the Maturity Date of the Grant. Repayment of the Grant as required under the terms of this paragraph 1 shall be made to City not later than the thirtieth (30 th ) day after the date of the Notice to the Developer of a violation referred to in paragraph 1(b) which violation is not cured within the 30 day notice period, said day is hereby designated for the purposes of this Agreement as the Maturity Date of the Grant. 2. Developer covenants with City that Developer is eligible for the Grant under the provisions of the City Resolution No.______________, in that: 43 a. The proceeds of the Grant will be used only for development of the property described below, primarily to create residential use for the property; and b. Developer has made no material misstatement of fact in connection with Developer’s application for the Grant. c. Developer further specifically covenants and agrees with City that Developer’s default under the provisions of this paragraph 2 constitutes an event requiring repayment of the Grant in the manner provided in paragraph 1, above, and in an event of default under the provisions of the Mortgage, as referred to in paragraph 4, below. 3. As security for the Developer’s personal covenant and obligation for repayment as herein provided, and subject to the terms and conditions of this Agreement, Developer hereby grants, and the City shall and hereby does have, a Mortgage lien on the real estate hereinafter described, together with all hereditaments and appurtenances thereto, in the full amount necessary to satisfy such repayment obligation and the cost, including reasonable attorney’s fees of collecting the same. The said real estate subject to said Mortgage lien is situated in Nicollet County, Minnesota, and is legally described as follows: The westerly 122 feet of Jefferson Square, in the Town (now City) of St. Peter, Minnesota, according to the Original and Amended Plats thereof on file and of record in the office of the County Recorder within and for Nicollet County, Minnesota. 4. In the event Developer or its assigns, employees or representatives are in default under the terms and conditions of this Agreement, the Developer confers upon the City the option of declaring all sums then owing by the Developer immediately due and payable without notice, and hereby authorizes and empowers the City to foreclose this Mortgage by judicial proceedings or to sell the mortgaged premises at public auction and convey the same to the purchases in fee simple in accordance with the statute, and out of the money arising from such sale to retain all sums secured hereby, with interest and all legal costs and charges of such foreclosure and the maximum 44 attorney’s fees permitted by Law, which costs, charges and fees the Developer herein agrees to pay. The Developer and City further covenant and agree as follows: a. Developer shall be furnished a conformed copy of this Agreement at the time of execution or after recordation. b. Upon default of the any covenant or agreement by Developer under the terms of this Agreement, City prior to foreclosure shall mail notice to Developer as provided herein specifying (i) the nature of the default by the Developer, (ii) the action required to cure such default, (iii) a date, if such default is capable of being cured by Developer, not less than thirty (30) days from the date the notice is mailed to Developer by which such default, if capable of being cured, must be cured; and (iv) that failure to cure such default on or before the date specified in the notice may result in acceleration of the sum secured by this Mortgage and sale of the mortgaged premises. The notice shall further inform Developer of the right, if any, to reinstate after acceleration and the right to bring to court action to assert the nonexistence of a default or any other defense of the Developer to acceleration and sale. c. In addition to any notice required under applicable law to be given in another manner, (i) any notice of the Developer provided for in this Agreement shall be given by mailing such notice by certified mail addressed to the Developer at the address of the mortgaged premises, or at such other address as the Developer may designate by notice in writing to the City as provided herein; and (ii) any notice to the City shall be given by certified mail, return receipt requested, to City at the following address: City of St. Peter, 227 South Front Street, St. Peter, Minnesota 56082-2538, or to such other address as City may designate by notice in writing to the Developer as provided herein. Any notice provided for in this Agreement shall be deemed to have been given to Developer or City when given in the manner designated herein. 5. The Mortgage lien created by this Agreement shall terminate and shall be of no further force or effect in the event Developer or his/her heirs, executors or 45 representatives are not in default of any of the covenants or agreements contained herein, and City has not, on or before _______________________ (two (2) years after signature date) (a) commenced an action in the manner provided by statute for the foreclosure of the Mortgage and (b) filed for record a notice of said action, or a power of attorney to foreclose mortgage or a lis pendens referring to the same, in the office of the County Recorder case may be, in the County where said real estate is situated. City may, in its sole discretion, extend said termination date of said lien by filing for record, on or before said termination date, an agreement with Developer or his/her heirs, executors or representatives evidencing such extension. 6. This Agreement shall run with the aforementioned real estate and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, representatives, successors and assigns. Wherever used, the singular number shall include the plural, and the plural the singular. All covenants and agreements of the Developer shall be joint and several. 7. In the event that any provision or clause of this Agreement shall conflict with applicable law, such conflict shall not affect the other provisions of this Agreement which can be given effect without the conflicting provision, and to this end the provisions of this Agreement are declared to be severable. IN TESTIMONY WHEREOF, the parties hereto have executed this agreement. ## DEVELOPERS: ## ALH LAND COMPANY, LLC ## By____________________________ ## Adam Huiras, Chief Manager ## FOX VALLEY PROPERTIES ## LIMITED LIABILITY COMPANY ## By____________________________ ## Erik Dunker, Chief Manager 46 ## STATE OF MINNESOTA ) ) ss ## COUNTY OF NICOLLET ) On this _____ day of __________, 2026, before me, a Notary Public within and for said County, personally appeared Adam Huiras, Chief Manager of ALH Land Company, LLC, a Minnesota Limited Liability Company, to me known to be the person described in, and who executed the foregoing instrument, and acknowledged that they executed the same as their free act and deed. ______________________________ ## Notary Public ## STATE OF MINNESOTA ) ) ss ## COUNTY OF NICOLLET ) On this _____ day of __________, 2026, before me, a Notary Public within and for said County, personally appeared Erik Dunker, Chief Manager of Fox Valley ## Property’s Limited Liability Company, a Minnesota Limited Liability Company, to me known to be the person described in, and who executed the foregoing instrument, and acknowledged that they executed the same as their free act and deed. ______________________________ ## Notary Public This instrument was drafted by: ## James W. Brandt Brandt Law Office, P.A. ## 219 W. Nassau, P.O. Box 57 ## St. Peter, MN 56082 47 ## CITY OF ST. PETER ## PRESIDENTS CORNER DEVELOPMENT ## ACKNOWLEDGMENT OF RECEIPT OF GRANT FUNDS ## AMOUNT: $ 35,954.00 In connection with the no-interest Grant for historic preservation work to restore the property at the address listed as 1225 South Washington Avenue, St. Peter. MN, the property owners: ALH Land Company, LLC and Fox Valley Property’s Limited Liability Company do hereby acknowledge receipt of a grant from the City of St. Peter in the amount of $35,954.00, such grant to cover up to 100% of the total amount for which the owners are eligible for under the Central Business District Accessibility Improvement Grant Program. Signed this ____ day of __________, 2026. ## ALH LAND COMPANY, LLC ## By____________________________ ## Adam Huiras, Chief Manager ## FOX VALLEY PROPERTIES ## LIMITED LIABILITY COMPANY ## By____________________________ ## Erik Dunker, Chief Manager 48 ## PURCHASE AGREEMENT This Purchase Agreement is made as of the _______ day of _______________, 2025, by and between City of Saint Peter, a municipal corporation, hereinafter referred to as CITY, and ALH Land Company, LLC and Fox Valley Property’s Limited Liability Company, hereinafter referred to as DEVELOPERS. 1. Purchase. CITY agrees to sell and DEVELOPERS agrees to purchase the real property located in Nicollet County, Minnesota, legally described as follows: The westerly 122 feet of Jefferson Square, in the Town (now City) of St. Peter, Minnesota, according to the Amended Plat thereof on file and of record in the office of the County Recorder within and for ## Nicollet County, Minnesota; Containing 34,160 square feet, more or less. (hereinafter the “Property”). 2. Purchase Price. The total purchase price (“Purchase Price”) to be paid by DEVELOPERS to the CITY for the property is One Hundred Thousand and no/hundred Dollars ($100,000.00. The Purchase Price shall be paid as follows: 2.1. Earnest Money. $2,000.00 by check which shall be payable to the CITY Attorney’s trust account pending closing. 2.2. Balance of Purchase Price. The balance of the Purchase Price, the sum of $98,000.00, shall be paid at closing by cashier’s check or wire transfer. 3. Closing. Unless extended or sooner terminated as provided herein, the closing of the purchase and sale of the Property (“Closing”) shall occur on or before _________, 2026, (“Closing Date”). The Closing shall take place at such place and time as may be mutually agreed. 4. Title. At the Closing and subject to performance by DEVELOPERS, CITY agrees to execute and deliver to DEVELOPERS a General Warranty Deed (“Deed”) conveying marketable title to the Property, subject only to the following exceptions (“Permitted Exceptions”): 4.1. Laws. Building and zoning laws, ordinances, State and Federal regulations; 4.2. Easements. Easements of record and utility or drainage easements. 49 4.3. Design Approval. This agreement is contingent upon the CITY’S approval of DEVELOPERS’ building design. The CITY reserves the right to deny any building permit which does not comply with the building design to be approved by the CITY. 4.4. Development Covenants. Site development and building construction will be in accordance with the Uniform Building Code and Zoning Ordinance of the City of Saint Peter. These requirements will apply to all new construction as well as reconstruction and remodeling. These requirements are in addition to any applicable law or ordinance and shall govern in case of differences. 4.5. Exterior Building Materials. Exterior building materials and finishes shall be as approved by the CITY. 4.6. Landscaping: 4.6.1 Landscape materials shall be maintained in a neat and satisfactory manner. DEVELOPERS is responsible for maintenance of all plant materials in the public right-of-way abutting their properties. 4.6.2. DEVELOPERS will be responsible for the complete sodding or seeding and maintenance of their parcels including all undeveloped areas. 4.6.3. No exterior fences, cribs, walls or other enclosure will be permitted without the approval of the CITY. 4.6.4. Flag poles will be limited to a maximum height of 30 feet. 4.7. Snow Removal. DEVELOPERS shall be responsible for prompt snow removal from all private, paved areas such as walkways, driveways, parking lots and loading areas. Use of the front yard setback for snow piling will not be permitted. 5. Title Examination. 5.1 DEVELOPERS acknowledges that DEVELOPERS may obtain a Commitment for Title Insurance. DEVELOPERS shall have ten (10) business days after the date hereof to have DEVELOPERS’ attorney examine the title and provide CITY with written objections. DEVELOPERS shall be deemed to have waived any title objections not made within the applicable 50 ten (10) day period provided for above, except that this shall not operate as a waiver of CITY’S covenant to deliver a General Warranty Deed. 5.2 CITY shall have 180 days from receipt of DEVELOPERS’ written title objections to make title marketable. Upon receipt of DEVELOPERS’ title objections, CITY shall, within ten (10) business days, notify DEVELOPERS of CITY’S intention to make title marketable within the 180-day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by CITY shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. 5.2.1. If notice is given and CITY makes title marketable, then upon presentation to DEVELOPERS and proposed lender of documentation establishing that title has been made marketable, and if not objected to in the same time and manner as the original title objections, the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. 5.2.2. If notice is given and CITY proceeds in good faith to make title marketable but the 180-day period expires without title being made marketable, DEVELOPERS may declare this Agreement null and void by notice to CITY, neither party shall be liable for damages hereunder to the other, and earnest money shall be refunded to ## DEVELOPERS. 5.2.3. If title is marketable, or is made marketable as provided herein, and DEVELOPERS defaults in any of the agreements herein, CITY may elect the following option, as permitted by law: 5.2.3.1 Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation. 5.3 Contingency. In the 1859 Amended Plat of the City of St. Peter, Jefferson Square was dedicated to the public for public purposes. In order for the City to obtain marketable title, it must obtain a District Court Order approving the vacation of Jefferson Square and granting the City the authority to sell the land. This sale is contingent upon the City obtaining a Court Order granting it the ability to sell this tract. 51 6. Taxes and Insurance. CITY shall pay on the date of Closing any and all prior years and deferred real estate taxes (including deferred taxes which become payable because of the loss of so-called “Green Acres” or other reduced or exempt tax classification) and attributable to the Property. CITY shall also pay at Closing all special assessments that have been levied or are pending against the Property at the time of Closing. DEVELOPERS and the CITY shall prorate general real estate taxes attributable to the Property which are due and payable in the year of Closing, except for payment of all deferred taxes which are CITY’S responsibility. 7. Buyer’s Inspection. 7.1. Inspection. So long as this Agreement remains in force, DEVELOPERS and DEVELOPERS’ employees, agents and contractors shall have the right to inspect the Property and conduct such soil and geologic tests, environmental assessments, surveys and other tests and inspections as DEVELOPERS may reasonably require, all at the sole cost and expense of ## DEVELOPERS. 7.1.1. Mechanics Liens; Indemnity. Under no circumstances shall DEVELOPERS allow any lien to be filed against the Property for any labor or materials furnished to or for DEVELOPERS prior to Closing. DEVELOPERS shall repair any damage and return the Property to substantially its condition existing prior to DEVELOPERS’ entry upon the Property. DEVELOPERS shall defend, indemnify and hold the CITY harmless from any damages, liens, claims, liability, injuries or costs (including attorneys’ fees) as may be incurred by the CITY as a result of, or relating to such tests and inspections of the Property. This obligation to defend, indemnify and hold harmless shall survive expiration or termination of this Agreement. 8. Representations and Warranties by CITY. 8.1 The CITY warrants and represents to DEVELOPERS that the following statements are true accurate as of the date of this Agreement and the Closing ## Date: 8.1.1. Title. The CITY is the record owner of good and marketable title to the Property. So long as this Agreement remains in force, the CITY shall not make or suffer any mortgage, lease, conveyance or other transfer, lien or encumbrance of all or any portion of the 52 Property in a manner which will not be released at or prior to Closing. 8.1.2. Capacity. The CITY has the full capacity, right, power and authority to execute, deliver and perform this Agreement and all documents to be executed by the CITY pursuant hereto. 8.1.3. Hazardous Substances. The CITY has no knowledge of, nor has the CITY used, generated, stored, treated, released, dumped or disposed of any Hazardous Substances (as defined below), toxic substances or waste in or about the Property, or into the sewage or other waste disposal or draining system serving the Property. The CITY understands and agrees that, as between the CITY and DEVELOPERS, the CITY is solely responsible for liability under any Environmental Laws, including any requisite clean-up of any Hazardous Substance, which arise as a result of use of the Property during the period of the CITY’S ownership. To the CITY’S knowledge, the CITY has not received any written notice from any governmental authority concerning the presence of any Hazardous Substance located on, in or under the Property. 8.1.3.1. “Environmental Law” means the Comprehensive ## Environmental Response, Comparison and Liability Act (“CERCLA”), 42 U.S.C. §9601 et seq., the Resource Conversation and Recovery Act, 42 U.S.C. ## §9601 et seq., the Federal Water Pollution Control Act, 33 U.S.C. §1201 et seq., the Clean Water Act, 33 U.S.C. §1321 et seq., the Clean Air Act, 42 U.S.C. §7401 et seq., the Toxic Substances Control Act, 33 U.S.C. §1251 et seq., all as amended from time to time, and any other federal, DEVELOPERS, local or other governmental statute, regulation, rule, law or ordinance dealing with the protection of human health, safety, natural resources or the environment now existing and hereafter enacted; and 8.1.3.2. “Hazardous Substance” means any pollutant, contaminant, hazardous substance or waste, sold waste, petroleum product, distillate, or fraction, radioactive material, chemical known to cause cancer or reproductive toxicity, polychlorinated biphenyl or any other chemical, substance or material listed or identified in or regulated by any Environmental Law. 53 8.1.4. Violations. Neither the entering into this Agreement nor the consummation of the transaction contemplated hereby will constitute or result in a violation or breach by the CITY of any judgment, order, writ, injunction or decree issued against or imposed upon it, or, to the CITY’S knowledge, will result in a violation of any applicable law, order, rule or regulation of any governmental authority. 8.1.5. Proceedings. To the CITY’S knowledge there is no threatened or pending action, litigation, or proceeding by any organization, person, individual or governmental agency (including governmental actions under condemnation authority or proceedings similar thereto or Environmental Laws) against the Property or against the CITY with respect to the CITY’S interest in the Property. 8.1.6. Governmental Notices. To the CITY’S knowledge the CITY has received no notices from municipal or regulatory bodies that the Property is in violation of the provisions of any federal, DEVELOPERS, local or other government building, zoning, environmental, health, fire, safety, platting, subdivision or other law, ordinance or regulation. 8.1.7. Wells; Private Sewage. The CITY certifies and warrants that to the CITY’S knowledge there are no “wells” on the Property within the meaning of Minn. Stat. 103I. This representation is intended to satisfy the requirements of that statute. The CITY certifies that (I) sewage which will be generated at the Property does go to a facility permitted by the Minnesota Pollution Control Agency, and (ii) to the CITY’S knowledge there are no existing or abandoned individual sewage treatment system on the Property. 8.1.8. Storage Tanks. Other than those which have been disclosed by the CITY to DEVELOPERS, to the CITY’S knowledge no above ground or underground tanks are located in or about the Property, in use or abandoned, and no such tanks have been removed during the CITY’S ownership of the Property except in compliance with applicable Federal, DEVELOPERS and local statutes, regulations, ordinances and other regulatory requirements regarding such removal. 54 8.1.9. Mechanics Liens. The CITY has paid for, or will pay for on or before Closing, all work, supplies and materials, performed upon and supplied to the Property by or on behalf of the CITY. 8.1.10. Foreign Person. The CITY is not a “foreign person” as contemplated by Section 1445 of the Internal Revenue Code. 8.2. Breach of the CITY’S Representations or Warranties. If any representation or warranty of the CITY is determined not to be true in any material respect as of the Closing Date, DEVELOPERS may, in DEVELOPERS’ sole discretion, at its option and by notice to the CITY, either (I) terminate this Agreement, or (ii) close on the Property. DEVELOPERS’ election to close with knowledge of a breach of a representation or warranty by the CITY will constitute a waiver or release by DEVELOPERS of any claims due to such breach. 8.3. Survival of the CITY’S Representation and Warranties. Each of the CITY’S representations and warranties herein contained shall survive the Closing and delivery and recordation of the Deed. 8.4. The CITY’S Knowledge. For all purposes of this Agreement, any representation or warranty which is made on the basis of “the CITY’S knowledge” is limited to the actual knowledge of the persons who execute this Agreement on behalf of the CITY, without conducting any inquiry, analysis, evaluation or other due and diligence investigation. 9. Closing Documents. At the Closing, the CITY shall execute and deliver the following: 9.1. Deed. The Deed subject to any Permitted Exceptions and Certificate of ## Real Estate Value; 9.2. Seller’s Affidavit. A standard Seller’s Affidavit with respect to judgments, bankruptcies, tax liens, mechanics liens, parties in possession, unrecorded interests, encroachment or boundary line questions, and related matters; 9.3. Non-foreign Affidavit. An affidavit of the CITY which states that the CITY is not a “foreign person” within the meaning of Section 1445 of the ## Internal Revenue Code; and 9.4. Miscellaneous. Such other instruments and documents as are reasonably required by the Title Insurer. 55 10. Closing Costs. 10.1 The following costs shall be paid by CITY: 10.1.1. Costs or expenses associated with making title marketable; 10.1.2. Preparation of Warranty deed; ## 10.1.3. State Deed Tax; 10.2 The following costs shall be paid by DEVELOPERS: 10.2.1. Preparation of Mortgage or Deed of Trust; 10.2.2 Recording fees; 10.2.3 Any closing fee incurred by DEVELOPERS; 10.2.4 Title Insurance Premium, if any. 11. Risk of Loss. The CITY shall keep the Property in its current condition until closing and assume all risk of destruction, loss or damage to the Property due to fire, storm or other casualty up to the date of closing. In the event of any adverse change in the condition of the Property, DEVELOPERS, in DEVELOPERS’ sole discretion, at his option and by notice to the CITY, may either (I) terminate this Agreement, and the Option Payment shall be promptly refunded to DEVELOPERS, or (ii) close on the Property, in which case there may be an equitable adjustment of the purchase price based on the change in circumstances. 12. Assignment; Successors and Assigns. This Agreement may be assigned by DEVELOPERS upon the written consent of the CITY and this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their heirs or respective successors and assigns. 13. Survival of Covenants. All of the terms, conditions, covenants and agreements contained in this Agreement shall survive the Closing. 14. Default. If DEVELOPERS defaults under this Agreement, the CITY shall have the right to terminate this Agreement by giving written notice to DEVELOPERS according to Minn. Stat. §559.21, and upon such termination, the CITY shall retain the Option Payment as liquidated damages. The termination of this Agreement and retention of the Option Payment will be the sole remedy available to the CITY for such default by DEVELOPERS, and DEVELOPERS will not be liable for damages 56 for specific performance. If the CITY defaults under this Agreement, this provision does not preclude DEVELOPERS from seeking and recovering from the CITY’S damages for nonperformance or specific performance of this Agreement. Any action by DEVELOPERS for specific performance of this Agreement shall be commenced within one year after such right of action by DEVELOPERS arises, time being of the essence. 15. Notices. Any notice, payment, demand or communication required or permitted to be given by any provision of this Agreement will be in writing and will be deemed to have been given when delivered personally, or on the date following the date sent by overnight courier or on the second (2 nd ) business day after the same is sent by certified mail, postage and charges prepaid, directly to the party entitled thereto, in each case addressed as follows (or to such other address as the parties may designate in the manner set forth herein: ## To CITY: City of St. Peter ## 227 S. Front Street ## St. Peter, MN 56082 ## Copy to: James W. Brandt Brandt & Winkler, P.A. ## 219 W. Nassau, P.O. Box 57 ## St. Peter, MN 56082 ## To DEVELOPERS: ALH Land Company, LLC %Adam Huiras ## 22 Balsam Court ## North Mankato, MN 56003 ## Fox Valley Property’s Limited Liability ## Company %Erik Dunker 1000 S. Front St. ## St. Peter, MN 56082 16. Entire Agreement. This Agreement embodies the entire agreement between the CITY and DEVELOPERS regarding the transaction contemplated hereby. This Agreement supersedes in all respects all prior written or oral agreements, if any, between the parties relating to the Agreement and the sale of the Property and there are no covenants, agreements, representations, warranties or undertakings of any sort or kind with respect thereto between the CITY and DEVELOPERS other than those specifically set forth in this Agreement. This Agreement may be amended only by a written instrument signed by both the CITY and DEVELOPERS. 57 17. Interpretation of Agreement. The parties acknowledge that this Agreement was prepared by the CITY solely as a convenience and that all parties and their counsel, hereto have read and fully negotiated all the language used in this Agreement. The parties acknowledge that because all parties and their counsel, if so desired, participated in negotiating and drafting this Agreement, no rule of construction shall apply to this Agreement which construes ambiguous or unclear language in favor of or against any party by reason of that party’s role in drafting this Agreement. 18. Governing Law. The validity, construction and performance of this Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 19. Headings. The headings in the sections of this Agreement are inserted for convenience only and shall not constitute a part hereof. 20. Severability. If any clause or provision of this Agreement is illegal, invalid or unenforceable under any present or future law, the remainder of this Agreement will not be affected thereby. It is the intention that if any such provision is held to be illegal, invalid or unenforceable, there will be added in lieu thereof a provision as similar in terms to such provision as is possible and legal, valid and enforceable. 21. Time. Time is of the essence of each and every provision of this Agreement where time is a factor. Except as otherwise expressly provided, references to intervals of time shall mean consecutive calendar days, months or years, as applicable. If the date for giving notice or taking action under this Agreement falls on a weekend or Federal or State holiday, the date for the giving of such notice or taking such action shall be extended to the next business day. 22. Recording. Neither this Agreement nor a memorandum of this Agreement shall be recorded. 23. Condition of Property. 23.1 CITY shall remove all debris and all personal property not included in this sale from the property before possession date. CITY has not received any notice from any governmental authority as to the existence of any Dutch elm disease, oak wilt, or other disease of any trees on the property. 23.2 CITY knows of no wetlands, flood plain, or shoreland on or affecting the property. 58 24. Disclaimer. CITY does not warrant that the soil is suitable for DEVELOPERS’ purposes. DEVELOPERS may at DEVELOPERS’ expense complete soil testing. In the event the soil tests indicate that the property may only be improved with incurring extraordinary building methods or expense, at DEVELOPERS’ option, this Purchase Agreement shall become null and void and all option money shall be refunded to DEVELOPERS. DEVELOPERS and CITY agree to sign a Cancellation of Purchase Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first written above. ## CITY OF SAINT PETER ALH LAND COMPANY, LLC _______________________________ By______________________________ Shanon A. Nowell, Mayor Adam Huiras, President ## _______________________________ FOX VALLEY PROPERTY’S Todd Prafke, City Administrator LIMITED LIABILITY COMPANY ## By______________________________ ## Erik Dunker 59 ## W Pine St ## W Jefferson Ave ## W Elm St ## W College Ave ## Valley View Rd ## S Washington Ave ## S 7th St ## S 5th St ## Presidents Corner 1225 S Washington Ave ## Street Names ## City Limits Parcels (5-28-2025) ## 6/17/2026, 8:42:53 AM 00.040.080.02mi 00.070.130.03km 1:3,343 ## City of Saint Peter Web GIS ## Source: City of Saint Peter, Nicollet County, Esri 60 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 – ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION APPROVING THE SALE OF THE OLD WATER TREATMENT PLANT ## PROPERTY LOCATED AT 1225 SOUTH WASHINGTON AVENUE TO ALH LAND ## COMPANY LLC & FOX VALLEY PROPERTY’S LIMITED LIABILITY COMPANY HAVING ## FOUND THAT THE PROPERTY IS NO LONGER USABLE OR NEEDED TO CARRY OUT ## THE GOVERNMENTAL PURPOSE FOR WHICH IT WAS ORIGINALLY ACQUIRED, ## CONSTRUCTED, OR BETTERED WHEREAS, the Old Water Treatment Plant Property is located at 1225 South Washington Avenue (Parcel 19.412.0615) and referred to as Presidents Corner, due to its location directly northeast of Washington Avenue & Jefferson Avenue, and legally described as “the westerly 122 feet of Jefferson Square, in the Town (now City) of St. Peter, Minnesota”, according to the Original Plat thereof on file and of record in the office of the County Recorder within and for Nicollet County, Minnesota (Subject Property); and WHEREAS, the City Council approved Resolution 2025-69 on May 12, 2025, resolving that: 1) the Subject Property no longer serves as a public purpose, and 2) the City was in need of more housing opportunities; and WHEREAS, the City Council approved a Purchase Agreement on May 12, 2025, with ALH Land Company LLC and Fox Valley Property’s Limited Liability Company for the sale of the Subject Property and future development of a residential housing project; and WHEREAS, on September 29, 2025, the State of Minnesota District Court found that the Plaintiff (City of Saint Peter) has title to the Subject Property and has the authority to sell said property (Court File No. 52-CV-25-437, Findings of Fact, Conclusion of Law, and Order for Judgment Document No. 355557, 10/7/25). ## NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT ## PETER, NICOLLET COUNTY, MINNESOTA, THAT: 1. Pursuant to Minnesota Statue §16A.695 Subd. 3 and §§ 5.02(a) and 5.02(d) of the Fourth Order Amending Order of Commissioner of Finance Relating to Use and Sale of State Bond Financed Property, dated July 30, 2012 (Commissioner’s Order), the City of Saint Peter has determined that the Subject Property is no longer usable or needed to carry out the governmental purpose for which it was originally acquired, constructed, or bettered. 2. The City of Saint Peter is authorized to sell the Subject Property to ALH Land Company LLC & Fox Valley Property’s Limited Liability Company pursuant to the terms of the Purchase Agreement, subject to approval by Minnesota Management & Budget. 61 Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 22 nd day of June, 2026. ___________________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 62 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET ## CITY OF SAINT PETER) ## RESOLUTION PROVIDING A DEVELOPMENT GRANT AND ENTERING INTO A ## PURCHASE AGREEMENT WITH ALH LAND COMPANY LLC (ADAM HUIRAS) & ## FOX VALLEY PROPERTY’S LLC (ERIK DUNKER) FOR THE CITY OWNED LAND AT ## 1225 SOUTH WASHINGTON AVENUE (PRESIDENTS CORNER) WHEREAS, in 2011, the City of Saint Peter (City) decommissioned and demolished the Old Water Treatment Plant, located at 1225 South Washington Avenue (Subject Property); and WHEREAS, the Subject Property has been sitting vacant for over 15 years; and WHEREAS, the City desires that the Subject Property be developed for residential use to help fill the housing need within the community; and WHEREAS, in March 2025, ALH Land Company (Adam Huiras) submitted an offer for the Subject Property, proposing to construct four (4) twin-homes (8 total units, each designed to house up to 4- bedrooms and 3-bathrooms); and WHEREAS, ALH Land Company is partnering with Fox Valley Property’s LLC (Erik Dunker) (Developers) to complete the project over the next year; and WHEREAS, once the project is fully constructed, the Subject Property will: 1) create new housing opportunities, 2) generate new property tax revenue (helping the City, County, and School District), and 3) will pay monthly utility fees to the City for each unit; and WHEREAS, the two parties have agreed to terms and details of the Purchase Agreement created by the City Attorney; and WHEREAS, the City Council previously approved Resolution 2025-70, on May 12, 2025, for a purchase price of $64,046; and WHEREAS, the City has agreed to provide a development grant of $35,954, the difference between the updated appraisal value ($100,000) and original Purchase Agreement price, to the developers to help pay for upfront costs and incurred engineering work; and WHEREAS, the City is required to pay $100,000, value of the subject property, to the State of Minnesota at the time of sale, to satisfy the Public Facilities Authority (PFA) loan/grant that was provided to the City in 2009 for construction of the new water treatment plant (Broadway) and demolition of the old Jefferson (Presidents Corner) Water Treat Plant. 63 ## NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT ## PETER, NICOLLET COUNTY, MINNESOTA, THAT: 1. The Mayor and City Administrator are hereby authorized to enter into a Purchase Agreement for the property at 1225 South Washington Avenue. 2. The City Administrator and Finance Director are authorized to reimburse the State of Minnesota $100,000 to satisfy the requirements of the 2009 loan/grant from PFA. 3. The City Administrator and Finance Director are authorized to provide a grant of $35,954 to the Developers of the Subject Property to help pay for costs already incurred. Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 22 nd day of June, 2026. ___________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: ____________________________ ## Todd Prafke ## City Administrator 64 ## Memorandum ## TO: Todd Prafke DATE: 6/18/2026 ## City Administrator ## FROM: Benjamin Baker ## Community Development Director ## RE: 2026 Accessibility Improvement Grant Program – Project Awards ## ACTION/RECOMMENDATION Approve a Resolution granting awards for the 2026 Accessibility Improvement Grant Program. ## BACKGROUND In 2019, the EDA recommended, and the City Council adopted guidelines for the ADA Accessibility Improvement Grant Program. The program was developed to encourage commercial properties/businesses to enhance accessibility for those with mobility impairments. Previously, under the terms of the loan program, the City financed improvements in the form of a forgivable loan (forgiven at a rate of 1/15 per year) at 0% interest. However, in 2025, the Program switched to a “grant” from a “forgivable loan”. Grant payment is provided to grant awardees once all the improvements are complete and inspected by the City. The building owner is responsible for maintaining and repairing the improvements over time to preserve accessibility. A budget of $50,000 was established by the City Council for the 2026 ADA Accessibility Improvement Program. The budgeted funds are mostly generated by annual interest from the City’s Revolving Loan Programs and fluctuate annually. Commercial businesses and property owners were notified of the program by direct mailing and the City’s website. Businesses were given a few months to prepare their applications, which were due April 30, 2026, at 4:30 pm. Seven (7) applications, totaling $50,910 in funding requests, were submitted by the deadline and reviewed by the Application Review Committee. The 2026 Application Review Committee was comprised of the following members: ## 2026 Application Review Committee: ## Julie Fredrickson, EDA President Dr Steven Moore, Cornerstone Wellness Ben Baker, Community Development Director Bob Southworth, EDA & Hometown Bank Corree Johnson, Previous EDA Vice President Scott Zarn, Planning Commission Chair 65 The Review Committee used the following criteria to help determine project rank: • Application completeness and accuracy • Current customer traffic in/out of the building • Exterior access into building • Use (restaurant, retail, community/social services, finance) • Businesses frequented by users that are disabled, elderly, or mobility impaired • Existing improvements and equipment already installed on-site • Existing site and building hardship • Cost of the improvement project • Project type and location • Approval by Public Works/Engineering (for sidewalk ramps) On May 14, 2026, the Application Review Committee met at the Community Center, discussed each application, provided comments, and they recommended that the following projects be considered by the EDA. On June 4, 2026, the EDA recommended approval of the following: ## No. Business Address ## Project ## Amount ## 1 Red Men Club 412 S 3rd St ## (1) Auto Door $2,000 ## 2 El Agave 814 N Minn Ave ## (2) Auto Doors $8,000 ## 3 Reflections 222 S Minn Ave ## (1) Auto Door & Ramp $10,000 ## 4 Four Seasons / HT ## 208/212 S Minn Ave ## (2) Auto Doors $8,000 ## 5 Sweet Alice 214 S Minn Ave ## Sidewalk & Ramp $7,000 ## 6 Hulsebus Chiro 206 W Walnut St ## Handicap Parking Stalls $8,000 ## 7 Shady Ridge 101 W Pine St ## (1) Auto Door & Ramp $7,000 ## TOTAL $50,000 ## Grant Award History Applications 2020 ## (CBD ## Only) 2021 ## (CBD ## Only) 2022 2023 2024 2025 Received 3 9 12 18 9 11 Funded 3 5 5 6 5 7 ## Commercial ## Buildings/ ## Business ## Kind Vet ## Clinic ## Swedish ## Kontur ## Riley- Tanis & ## Associates ## Nutter’s Cooks & Co. ## Arrow Hardware & ## Paint ## Red Man ## Club ## Nicollet Hotel (withdrawn) ## St. Peter ## Foot & Ankle ## Jakes Pizza ## American ## Legion Post #37 ## Subway ## Nicollet ## County ## Ag Society (Fairgrounds) ## St. Peter ## Eyecare ## Center ## River Rock ## Coffee & Tea ## First Lutheran ## Church ## Saint Peter ## Family Dental ## Cornerstone ## Wellness ## The Capitol Room ## St Peter ## Chiropractic & Acupuncture ## Personal ## Hearing ## Care ## Hulsebus ## Chiropractic ## Counseling Services of ## Southern ## MN ## Nelson ## Printing ## Estate ## Apartments ## Sunrise ## Church ## Dairy ## Queen ## Flame Bar ## KAVO ## Third Street ## Tavern ## Patrick’s ## On Third ## Timeless 66 ## Budget vs. Approved vs. Actual 2020 (CBD Only) 2021 (CBD Only) 2022 2023 2024 2025 Budget $28,750 $25,400 $55,000 $45,000 $55,000 Approved $12,225 $35,765 $34,195 $53,132 $35,150 $56,439 Actual $11,863 $35,599 $33,663 $51,591 $35,150 $52,927 NOTE: The approved Budget is a guide only. The actual 2026 total grant award amount may be lower or higher than the budget target. ## FISCAL IMPACT: $50,000 was the approved budget for 2026 Accessibility Improvement Grant Program. Project funding comes from the interest income generated by the Revolving Loan Fund (RLF) and its fund balance. Sufficient funding is available for the seven (7) proposed projects. ## ALTERATIVES / VARIATIONS Do not act: Staff will await further direction from the City Council. Denial: The applicants will be notified of the City Council’s decision. Modification: This is always an option of the City Council. Please feel free to contact me if you have any questions or concerns about this agenda item. ## BB 67 ## CIT ## Y OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 – ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION APPROVING THE 2026 ACCESSIBILITY IMPROVEMENT GRANTS ## FOR COMMERCIAL PROPERTIES/BUSINESSES WHEREAS, the Economic Development Authority (EDA) administers the City’s Revolving Loan Funds; and WHEREAS, the City has established the Americans with Disabilities Act (ADA) Accessibility Improvement Grant Program to make interest free forgivable loans and improve accessibility for commercial properties/businesses; and WHEREAS, guidelines have been established which govern and determine the criteria of the ## Revolving Loan Program; and WHEREAS, a 2026 approximate budget of $50,000 was established by the City Council; and WHEREAS, a total of seven (7) applications were received; and WHEREAS, an Application Review Committee was formed to review the applications, including ## representatives from the Community Development Department, Economic Development Authority (EDA), Historic Preservation Commission (HPC), Planning Commission, and Downtown businesses; and WHEREAS, following the recommendation by the Application Review Committee on May 14, 2026, the EDA recommended funding seven (7) eligible projects, totaling $50,000.00, at their meeting on June 4, 2026. ## NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT ## PETER, NICOLLET COUNTY, MINNESOTA, THAT: The following commercial properties/businesses for the 2026 Accessibility Improvement Grant Program are awarded grants up to the amounts listed as follows: ## No. Business Address Project Amount 1 Red Men Club 412 S 3rd St (1) Auto Door $2,000 2 El Agave 814 N Minn Ave (2) Auto Doors $8,000 3 Reflections 222 S Minn Ave (1) Auto Door & Ramp $10,000 ## 4 Four Seasons / HT ## 208/212 S Minn Ave (2) Auto Doors $8,000 5 Sweet Alice 214 S Minn Ave Sidewalk & Ramp $7,000 68 6 Hulsebus Chiro 206 W Walnut St Handicap Parking Stalls $8,000 7 Shady Ridge 101 W Pine St (1) Auto Door & Ramp $7,000 ## TOTAL $50,000 Adopted by the City Council of the City of Saint Peter on this 22 nd day of June, 2026. ___________________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 69 ## Memorandum ## TO: Todd Prafke DATE: 6/18/2026 ## City Administrator ## FROM: Ben Baker ## Community Development Director RE: CBD Renovation / Accessibility Enhancement Loan – 222/224 South Minnesota Ave ## ACTION/RECOMMENDATION Approve a Resolution providing a Central Business District (CBD) Renovation / Accessibility Enhancement Loan request in the amount of $25,000 for exterior improvements to the building(s)/property at 222/224 South Minnesota Avenue. ## BACKGROUND Maria O’Connell, Cornerstone LLC, purchased the property at 224 South Minnesota Avenue (Parcel 19.412.3810) in December 2025 (6 months ago). The subject property contains two buildings: 1. 222 S Minnesota Ave (Reflections Salon) – 1,260 sf (2-story building) 2. 224 S Minnesota Ave (Erbert & Gerberts) – 2,200 sf (2-story building) In an effort to help restore the historic building(s), O’Connell plans to make the following exterior improvements, including pressuring washing, acid washing, painting, and tuck-pointing work. The landmark structure was originally constructed in 1856. ## Loan Request The applicant is planning to inject up to $60,010 into this historic building located within the Central Business District. To help fund the significant financial investment, O’Connell has requested that the City/EDA consider approval of the following loan request: ## Improvements PHASE I - Masonry restoration, brick work, washing, painting, equip rental $42,500 PHASE II - Tiling work and entrance restoration $7,000 PHASE III – Ramp, New Door, and Automatic Opener – Reflections Salon $10,510 ## TOTAL $60,010 70 ## Funding Sources Personal 41% $24,500 City - CBD Reno Enhance (up to 90% / max $25,000/building) 42% $25,000 ## City – ADA Accessibility Improvement Grant 1 17% $10,510 ## TOTAL 100% $60,010 ## 1 – Separate Application Submitted by Applicant ## CBD Renovation / Accessibility Enhancement Loan ## Loan Program Purpose The purpose of the CBD Renovation / Accessibility Enhancement Loan Program is to promote reinvestment in the properties within the Downtown area. Specifically, the program is designed to fund exterior historical enhancements and/or handicapped accessibility improvements to commercial structures within the historic downtown. Furthermore, the loan program helps to provide a financial incentive for reinvestment in the Downtown / Central Business District buildings and create a visually appealing place to shop and conduct business. ## Eligible Project Expenses The proposed exterior improvements at the subject property are eligible expenses for the loan funds. ## Loan Terms Based on the loan guidelines, the proposed loan would receive the following terms: ## Loan Amount Interest Amortization Monthly Payment Loan Funds Released $25,000.00 0% 10 Years $208.33 Upon Completion of Work The loan guidelines suggest a 10-year amortization for loan amounts ranging from $10,000- $25,000. ## Partial Loan Forgiveness According to the loan guidelines, at such time that the outstanding principal of the loan is reduced to $5,0000 or less, the balance of the principal may be forgiven and the note considered repaid in full. To qualify for partial loan forgiveness, the applicants must have an acceptable repayment history, where every payment is made on time, and the loan does not fall into default. ## Loan Security A personal guarantee and mortgage (filed against the subject property) will be required. ## Fees According to the program guidelines, no loan origination fees are required. However, the applicant is responsible for paying any fees associated with recording the mortgage. The EDA Loan Review Committee, EDA and Heritage Preservation Commission have reviewed and recommended approval. ## FISCIAL IMPACT If approved the requested loan funds ($25,000) would be provided to the borrower from the established revolving loan fund account. The note would be repaid in full upon receipt of the required monthly payments, and then a Satisfaction of Mortgage would be issued. 71 ## ALTERATIVES / VARIATIONS Do not act: Staff will await further direction from the City Council. Denial: The applicants will be notified of the City Council’s decision. Modification of the Resolution: This is always an option of the City Council. Please feel free to contact me if you have any questions or concerns about this agenda item. ## BB 72 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION APPROVING A CENTRAL BUSINESS DISTRICT RENOVATION ## ENHANCMENT LOAN IN THE AMOUNT OF $25,000 TO CORNERSTONE LLC TO ## PARTIALLY FINANCE IMPROVEMENTS AT 222/224 SOUTH MINNESOTA AVENUE ## (ERBERT & GERBERTS / REFLECTIONS SALON BUILDING) WHEREAS, the Economic Development Authority (EDA) administers the City’s Revolving Loan (RL) Programs; and WHEREAS, the “Central Business District - Renovation / Accessibility Enhancement (CBD-R/AE)” Loan Program, was established in August 2016, replacing the “Historic Preservation / Facade Renovation / Enhancement” Loan Program within the RL fund; and WHEREAS, the EDA was granted the power to administer the RL Programs and to make recommendations to the City Council for disbursement of new loans; and WHEREAS, guidelines have been established which govern and determine the criteria of the ## CBD-R/AE Loan Program; and WHEREAS, Maria O’Connell, Cornerstone LLC, submitted a Loan Request Application in the amount of $ 25,000 to partially finance improvements at the Erbert & Gerberts / Reflections Salon building (222/224 S Minnesota Ave); and WHEREAS, the proposed improvement projects are listed as an eligible activity of the CBD-R/AE Loan Program, and it also meets the criteria of the Loan Program; and WHEREAS, on June 4, 2026, the EDA reviewed the loan application, and they recommended approval of a $25,000 loan request to the City Council. ## NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT ## PETER, NICOLLET COUNTY, MINNESOTA, THAT: 1. A Central Business District Renovation / Accessibility Enhancement Loan, in the amount of $25,000, is hereby approved to help partially finance the eligible improvements at 222/224 South Minnesota Avenue. 2. The loan shall have an interest rate of 0% and be amortized over 10 years. 3. Loan forgiveness shall be provided by the EDA/City to the borrowers according to Section 8 of the Central Business District Renovation / Accessibility Enhancement Loan Program Guidelines, if all monthly payments are paid in full and on time. 4. The loan shall be secured with a personal guarantee and mortgage. 73 Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 22 nd day of June, 2026. ___________________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 74 ## Memorandum ## TO: Todd Prafke DATE: 6/18/2026 ## City Administrator ## FROM: Benjamin Baker ## Community Development Director RE: Revolving Loan Request – River Rock Coffee & Tea – 301/303 S. Minnesota Ave ## AC ## TION/RECOMMENDATION ## Appr ove a Resolution approving a $129,000 revolving loan to Azure Skye, LLC for improvements to the historic building at 301 South Minnesota Avenue (River Rock Coffee & Tea). ## BACKG ## ROUND ## Az ure Skye LLC is the property owner and applicant. Azure Skye, LLC (Co-Owners: Tamika Bertram, Katie Aho, Helena Shanks/Juffer), purchased the property at 301 South Minnesota Avenue in January 2017 (9 years ago), however, River Rock Coffee was founded in 2002 (24 years ago) in Saint Peter by Tamika Bertram. The subject property contains one two-story building (2,080 sf x 2 floors). Azure Skye also owns the 303 S Minnesota Ave property/building directly to the south. The property owners have been working with Goodrich Construction to stabilize the building (foundation, framing, and steel beam work) and fixing/replacing the corner façade (windows and brick work). Goodrich Construction specializes in restoring historic buildings, such as the 1890s building, which is a contributing structure in the Historic District. ## Loan Request The appl icants plan to inject over a half-million dollars into the historic building located within the Central Business District. To help fund the significant financial investment, Azure Skye has requested that the City/EDA consider approval of a Revolving Loan request in the amount of $129,000 for exterior and interior improvements to the building/property at 301 South Minnesota Avenue. ## Funding S ources Loan – Pioneer Bank 52% $341,500 ## Loan – Southern Minnesota Initiative Foundation 24% $159,000 Loan – City of Saint Peter 20% $129,000 Loan / Grant – City of Saint Peter CBD Reno / Enhancement 4% $25,000 ## TOTAL $654,500 75 Based on a December-2025 Appraisal, the Azure Skye properties are valued as follows: ## Last Sale As-Is As Proposed 301 S Minn Ave $493,000 (Jan ’17) $380,000 $565,000 1 303 S Minn Ave $493,000 (Jan ’17) $190,000 $190,000 ## TOTAL $755,000 1 – additional improvements (project scope and value) completed since appraisal date One of the main purposes of the Revolving Loan Program is to stimulate private sector investment in facilities and provide affordable loans for the rehabilitation of commercial buildings to help maintain historic buildings and commercial viability. Investment in Downtown buildings helps to create a visually appealing place to gather, eat/drink, shop, and conduct business. The proposed improvements at the River Rock building are listed as eligible expenses for the loan funds. ## Loan Terms Based on the loan guidelines, the proposed loan would receive the following terms: ## Loan Amount Interest Amortization Monthly ## Payment ## Balloon Extension $129,000.00 4.75% 20 Years $833.63 5 Years 5 Years • The loan guidelines suggest a 20-year amortization for remodeling/construction loans. • Total Interest (over 20 years): $71,071 If approved, and as required by policy, the loan would continue to be secured with a mortgage (recorded against the property). The City/EDA would be in a position behind Pioneer Bank and SMIF. A signed personal guarantee will be required by all three owners. The EDA Loan Review Committee reviewed the loan request submitted by the applicant, along with associated financial documents and information. The EDA Loan Review Committee reviewed Azure Skye’s financial documents and information to make sure the applicant would have the ability to honor the note. The group recommend approving the loan request based on the loan terms as stated above. The Review Committee recommended setting the interest rate at 4.75% (2% Under Prime) per the City’s guideless for secured loans. On June 4, 2026 the EDA recommended approval of the loan request. ## FISCAL IMPACT: New loan funds will be issued in the applicant in the amount of $129,000. Monthly payments (+$833.63/mo.) would be paid by the applicant over twenty (20) years until the note is retired. If the loan is not refinanced or paid off early, the City will receive interest payments at a rate of 4.75% over the life of the loan, totaling up to $71,071. ## ALTERNATIVES/VARIATIONS: Do Not Act: Staff will await further instructions. Denial: The applicant will be notified of the denial. Modification of the Resolution: This is always an option; however, alternative loan terms and conditions would need to be acceptable to the applicant. Please feel free to contact me if you have any questions or concerns about this agenda item. ## BB 76 77 78 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION APPROVING A REVOLVING LOAN IN THE AMOUNT OF $129,000 ## FOR IMPROVEMENTS TO THE BUILDING AT 301 SOUTH MINNESOTA AVENUE ## (RIVER ROCK COFFEE & TEA) WHEREAS, the Economic Development Authority (EDA) administers the City’s Revolving Loan Programs; and WHEREAS, the EDA was granted the power to administer the Revolving Loan Programs and to make recommendations to the City Council for disbursement of new loans and extension of existing loans; and WHEREAS, guidelines have been established which govern and determine the criteria of the ## Loan Program; and WHEREAS, Azure Skye submitted a revolving loan request, in the amount of $129,000, for improvements to the River Rock Coffee & Tea building, located at 301 South Minnesota Avenue; and WHEREAS, the EDA Loan Review Subcommittee reviewed the Azure Skye’s f inancial documents and information, and they recommended approval of the loan based on the established City’s ## Revolving Loan Program Guidelines; and WHEREAS, on June 4, 2026, the EDA reviewed the loan application, and they recommended approval of the loan request to the City Council. ## NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT ## PETER, NICOLLET COUNTY, MINNESOTA, THAT: 1. A revolving loan in the amount of $129,000 is hereby approved for building improvements. 2. The loan shall have an interest rate of 4.75% (2% under the Prime Rate). 3. The loan shall continue to be secured with a mortgage. Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 22 nd day of June, 2026. ___________________________________ ## Shanon A. Nowell ## Mayor 79 ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 80