--- ## title: New North Neighborhood FAQ - St. Peter - 2026-08-14 ## author: Charles Burdick date: D:20260814174825Z --- ## C\'TY Oft- ## CITY OF SAINT PETER, MINNESOTA ## AGENDA AND NOTICE OF MEETING Regular City Council Meeting of Monday, August 24, 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. 7-11 ## VI. UNFINISHED BUSINESS ## None Scheduled ## VII. NEW BUSINESS ## A. CoNorth Development Agreement - p. 12-51 ## B. Wastewater Treatment Plant Switchgear Replacement - p. 52-54 ## C. Front Street Substation Switchgear Upgrade - p. 55-56 ## D. Library Flooring Replacement Project - p. 57-58 E. City Assistance Request: St. Peter Art Stroll - p. 59-60 ## VIII. REPORTS ## A. MAYOR ## B. COUNCILMEMBERS ## C. CITY ADMINISTRATOR ## IX. ADJOURNMENT ## Todd Prafke ## City Administrator ## C\T^ COUNCIL ## AGENDA MEMORANDUM 26-16 ## REGULAR MEETING OF August 24, 2026 ## 7:00 P.M. ## I. CALL TO ORDER Mayor Nowell will call the meeting to order and lead the Pledge of Allegiance. ## II. APPROVAL OF AGENDA A motion to approve the agenda, as posted in accordance with the Open Meeting Law, will be entertained. A MOTION is in order. ## III. APPROVAL OF MINUTES A copy of the minutes of the August 10, 2026 regular meeting is attached for approval. A MOTION is in order. ## IV. VISITORS ## A. SCHEDULING OF VISITOR COMMENTS ON AGENDA ITEMS Members of the audience wishing to address the Council concerning an agenda item later in the meeting should be noted at this time. ## B. GENERAL VISITOR COMMENTS Members of the Audience wishing to address the Council concerning items not on the agenda may do so at this time ## V. APPROVAL OF CONSENT AGENDA ITEMS The consent agenda including approval of the disbursements for August 7, 2026 through August 20, 2026 is recommended for approval. Please see the attached staff reports and ## RESOLUTION. ## VI. UNFINISHED BUSINESS None scheduled. ## VII. NEW BUSINESS ## A. CONORTH DEVELOPMENT AGREEMENT ## CIPf COUNCIL ## AGENDA MEMORANDUM 26-16 ## REGULAR MEETING OF August 24, 2026 ## 7:00 P.M. Action is requested to approve a RESOLUTION to enter into a Development Agreement with CoNorth. Please see the attached Staff Report and ## RESOLUTION. ## B. WASTEWATER TREATMENT PLANT SWITCHGEAR REPLACEMENT Action is requested to approve a RESOLUTION authorizing the emergency purchase and installation of a generator switchgear for the Wastewater Treatment Plant from Zeigler Cat Power Systems of Shakopee Minnesota. Please see the attached staff report and RESOLUTION. ## C. FRONT STREET SUBSTATION SWITCHGEAR UPGRADE Action is requested to approve a RESOLUTION accepting the 15kV switchgear improvements at the Front Street Substation as completed and authorize final payment to Harold K. Scholz Co. Please see the attached staff report and ## RESOLUTION. ## D. LIBRARY FLOORING REPLACEMENT PROJECT Action is requested to approve a RESOLUTION approve a bid from Berger Interiors for library flooring materials and installation. Please see the attached staff report and RESOLUTION. ## E. CITY ASSISTANCE REQUEST: ST. PETER ART STROLL Action is requested to approve a RESOLUTION approving a request for City Assistance from the organizers of the St. PeterArt Stroll. Please see the attached staff report and RESOLUTION. ## VIII. REPORTS ## A. MAYOR Any reports from the Mayor will be provided at this time. ## B. COUNCILMEMBERS Any reports by the Councilmembers will be provided at this time. ## C. CITY ADMINISTRATOR Any reports by the City Administrator will be provided at this time. cmf COUNCIL ## AGENDA MEMORANDUM 26-16 ## REGULAR MEETING OF August 24, 2026 ## 7:00 P.M. ## IX. ADJOURNMENT ## Todd Prafke ## City Administrator ## CITY OF SAINT PETER, MINNESOTA ## OFFICIAL PROCEEDINGS ## MINUTES OF THE CITY COUNCIL MEETING ## AUGUST 10, 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 7:02 p.m. The following Councilmembers were present: Keri Johnson, Josh Weisenfeld, and Dustin Sharstrom. Councilmembers Darrell Pettis, Ben Ranft, and Brad DeVos were absent. The following officials were also present: City Administrator Todd Prafke, City Attorney James Brandt, Public Works Director Pete Moulton, Recreation and Leisure Services Director Ryan Yunkers, Sustainability and Communication Coordinator Corree Johnson, and City Engineer Jeffrey Domras. Approval of Agenda – A motion was made by Sharstrom, seconded by Weisenfeld, to approve the agenda. With all in favor, the agenda was approved. Approval of Minutes – A motion was made by Johnson, seconded by Sharstrom, to approve the minutes of the July 27, 2026 regular City Council meeting. With all in favor, the minutes were approved. A complete copy of the minutes of the July 27, 2026 regular City Council meeting is contained in the City Administrator’s book entitled Council Proceedings 20. Visitors – MaryJo Knutson from Minnesota Recreation and Parks Association (MRPA) awarded the City of Saint Peter with two 2025 Awards of Excellence including one award in Marketing & Communications for the “An Evening With” Author Series, and one award in the Park & Facility category for Phase 1 of the Gorman Park Improvement Project. Consent Agenda – In motion by Sharstrom, seconded by Weisenfeld, Resolution No. 2026–132 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. 2026-132 is contained in the City Administrator’s book entitled Council Resolutions 26. McKinstry MOU Acceptance – Sustainability and Communications Coordinator Johnson reviewed the Memorandum of Understanding (MOU) as a no-cost Preliminary Energy and Sustainability Evaluation of City facilities and operations. John Neville, Regional Director of McKinstry, addressed the Council regarding the details of the evaluation. City Administrator Prafke shared that if approved McKinstry would report to the Council at a Workshop, to discuss before going to a regular meeting for final approval, next steps and bidding. In motion by Sharstrom, seconded by Johnson, Resolution No. 2026-133 entitled “Resolution Approving a Memorandum of Understanding Between the City of Saint Peter and McKinstry Essention LLC to Conduct a Preliminary Energy & Sustainability Evaluation“ was introduced. Upon roll call, with all in favor, the Resolution was declared passed and adopted. A complete copy of Resolution No. 2026-133 is contained in the City Administrator’s book entitled Council Resolutions 26. City Assistance Request – Rock Bend Folk Festival – City Administrator Prafke reviewed the request stating it was similar to requests from previous years. Prafke requested approval of the assistance request. 5 In motion by Weisenfeld, seconded by Sharstrom, the Resolution No. 2026-1 34 entitled “Resolution Authorizing City Assistance for Rock Bend Folk Festival” was introduced. Upon roll call, with all in favor, the Resolution was declared passed and adopted. A complete copy of Resolution No. 2026-134 is contained in the City Administrator’s book entitled Council Resolutions 26 . New License – City Administrator Prafke shared that the owners of the Flame Bar assumed business operations for the American Legion and due to taking over the operations have applied for a On-sale, Sunday, and Off-Sale Liquor Licenses. Prafke requested approval of the licenses. In motion by Johnson, seconded by Sharstrom, the Resolution No. 2026-135 entitled “Resolution Approving New Licenses” was introduced. Upon roll call, with all in favor, the Resolution was declared passed and adopted. A complete copy of Resolution No. 2026-135 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 residents for cooperation with the ongoing sealcoating project within the City. Recreation and Leisure Services Director Yunkers shared updates to electric hookups at the Riverside Park – Mill Pond Campground. There being no further business, a motion was made by Sharstrom, seconded by Johnson, to adjourn. With all in favor, the motion carried, and the meeting adjourned at 7:24 p.m. ___________________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 6 ## Memorandum ## TO: Todd Prafke DATE: 8/21/2026 ## City Administrator ## FROM: Pete Moulton ## Public Works Director ## RE: Maintenance Superintendent Appointment ## ACTION/RECOMMENDATION Approve the appointment of Amy Kamm to the position of Maintenance Superintendent within the Public Works Department. ## BACKGROUND Staff advertised, received applications, and interviewed seven candidates for the position of Maintenance Superintendent. This position became vacant when the Maintenance Superintendent resigned. Amy Kamm emerged as the top candidate and a contingent offer of employment has been made based on the following: • Starting salary of $100,000 (mid-range of advertised wage scale). • Step increase at 3-months of employment based on preset performance standards. • Wage increase at beginning of 2027. • Step increase at 6-months based on successful completion of the probationary period based on preset performance standards. • Step increase at 1-year of employment based on preset performance standards. • Start employment August 31, 2026 effective upon approval by City Council. • Cell phone stipend as provided for in the current administrative policies. I recommend Amy Kamm for the position of Maintenance Superintendent. Please feel free to contact me should you have any questions or concerns about this agenda item. ## PM 7 ## Police Department ## Memorandum ## TO: Todd Prafke DATE: 8/21/2026 ## City Administrator ## FROM: Matt Grochow ## Chief of Police ## RE: Police Patrol Officer Appointment ## ACTION/RECOMMENDATION Approve the appointment of Samuel Polito to the position of Police Patrol Officer at the wage rate of $50.15 per hour. ## BACKGROUND Due to a resignation, a Police Patrol Officer position became vacant. An external application process was initiated. The recruitment process included an external posting of the position, establishment of a scoring system based on the job description, development of an interview team and questions, interview, and a background check. Based on his 8 years of experience in law enforcement, the interview, his application materials, and a completed background check, Mr. Samuel Polito is an excellent candidate for the Police Patrol Officer Position. I recommend the appointment of Samuel Polito as Patrol Officer. Please feel free to contact me should you have any concerns or questions related to this agenda item. ## MG/mm 8 ## Memorandum ## TO: Todd Prafke DATE: 8/21/2026 ## City Administrator ## FROM: Pete Moulton ## Director of Public Works RE: 2026 North 4 th ## Street (Chatham to Skaro) Improvements – Construction Services ## ACTION/RECOMMENDATION Authorize Bolton and Menk, Inc. to provide construction services for the 2026 North 4 th ## Street (Chatham to Skaro) Improvements in an amount not to exceed $68,000.00. ## BACKGROUND Bids were received on April 23, 2026 for the improvement of North 4th Street between Chatham and Skaro Streets. The improvements include the replacement of sanitary sewer, watermain, storm sewer, services lines, curb & gutter, sidewalk and roadway pavement based on their age and condition. The project was awarded in April 2026 to the low bidder, Holtmeier Construction. Construction is proposed to begin after the community pool closes in August and is expected to be substantially completed by the end of November. City Staff will observe construction, and the following construction services are proposed at the fee noted. Construction administration includes a preconstruction meeting, weekly construction meetings, shop drawing review, pay estimate preparation and routing, construction administration, punch list preparation and routing, coordination with the Contractor on final turf establishment and punch list items. The cost of the proposed construction services for the 2026 North 4 th Street (Chatham to Skaro) improvements project is noted below: Review shop drawings for compliance with plan/spec $5,500.00 Construction staking (sanitary, water, storm, c & g, sidewalk) $14,000.00 Construction administration $48,500.00 Total (hourly not to exceed) $68,000.00 Funding for the project will be funded through assessments to benefit property owners and budgeted City Utility and General Funds. Please feel free to contact me should you have any questions or concerns. ## PM 9 ## Memorandum ## TO: Todd Prafke DATE: 8/21/2026 ## 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 August 7, 2026 to August 20, 2026 (totaling $2,246,130.37). ## FUND TOTALS ## 101 GENERAL FUND $478,993.65 ## 211 LIBRARY FUND $7,962.02 ## 213 PUBLIC ACCESS $769.43 ## 217 COMMUNITY CENTER $6,494.69 ## 219 AMERICAN RESUE PLAN $263,869.87 ## 373 2013 EQUIPMENT CERTIFICATE $850.00 ## 460 HOUSING DISTRICT #20 $1,237.50 ## 471 NEW CITY HALL CIP $237,259.12 ## 601 WATER $69,171,61 ## 602 WASTEWATER FUND $22,481.20 ## 603 ENVIRO SERVICES FUND $68,776.47 ## 604 ELECTRIC FUND $1,075,579.11 ## 606 STORMWATER FUND $3,249.70 ## 820 RESTRICTED CONTRIBUTIONS $4,810.74 ## 830 MN RIVER VALLEY TRANSIT $4,625.16 ## GRAND TOTAL: $2,246,130.27 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 10 ## 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 Wage Amy Kamm Maintenance Superintendent $100,000/yr salary Samuel Polito Police Patrol Officer $50.15 2. Bolton and Menk, Inc. are authorized to provide construction services for the 2026 North 4 th Street (Chatham to Skaro) Improvements in an amount not to exceed $68,000.00. 3. The schedule of disbursements for August 7, 2026 through August 20, 2026 are approved. Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 24 th day of August, 2026. ___________________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 11 ## Memorandum ## TO: Mayor Nowell DATE: 8/21/2026 ## Members of the City Council FROM: Todd Prafke Benjamin Baker City Administrator Community Development Director ## RE: Development Agreement with CoNorth - New Residential Development New North Neighborhood Located at Klein Street & (Future) N Washington Ave ## ACTION/RECOMMENDATION Approve the attached resolution entering into a Development Agreement with CoNorth, a Minnesota nonprofit organization. ## BACKGROUND On February 3, 2025, CoNorth (a nonprofit formerly known as the North Country Foundation) presented a new residential cooperative neighborhood concept to the City Council. The design proposed 55 facility‑built homes and a community center that aligned with the City’s goals for expanding affordable housing. CoNorth’s mission is to create facility‑built home communities managed through a cooperative model, support residents with low incomes, and promote lasting, affordable, self‑governing neighborhoods. While CoNorth’s past work has focused on acquiring and assisting manufactured‑housing cooperatives, this will be its first full new‑development project. On June 23, 2026, the City approved an Exclusive Right to Negotiate Purchase agreement identifying two potential sites for the project. Although an initial resolution on November 24, 2025, to locate the project at Klein Street did not pass, subsequent discussion, evaluation of alternative sites, and clarification of community benefits led to renewed Council support following the March 29, 2026, Council Goal Session. Since then, staff and CoNorth have worked together to develop a mutually agreed‑upon Development Agreement. The attached agreement has been reviewed by your attorney and the attorney for CoNorth. The substantive issues covered in the agreement include: ## 1. Assignment and Exclusivity 2. Parkland Dedication ## 3. Location and Land Transfer 4. Home Ownership Product Offering ## 5. Zoning/Land Use 6. Funding, Assessments, and Fees ## 7. Engineering, Const Plans, and Phasing 8. Liability and Notice ## 9. Improvements 10. Conveyancing Provisions 12 At your last workshop the Council reviewed a draft of the Development Agreement, timelines, actions needed and funding. The nuts and bolts of the agreement are based on the items you have discussed previously with one additional item based on discussion and verbal agreement with the developer related to carbon reduction. We believe all items are covered appropriately in the documents. Those issues are: • Fees and payments as outlined in the attached schedule, including a $30,000 payment at signing • Transfer of land to CoNorth and City support for the MHF infrastructure grant • Unilateral cancellation option for either party at the 50% engineering milestone and again at 90% design completion • Assessments to repay all development costs • City ownership of all infrastructure, consistent with other subdivisions, to ensure long‑term maintenance control • CoNorth to provide financing and mortgage products as described in the agreement • Collaborative design process meeting City standards; City to lead infrastructure design, bidding, and construction • Requiring all stoves, clothes dryers and water heater be electric in an effort to reduce carbon footprint. The development will include the following design considerations on subdivision layout, infrastructure development and lot development: • Approximately 60 facility‑built homes • Three phases of ~20 homes each • Mix of home types: 11% Cross‑Mod (6 units), 28% Single‑Wide (17 units), 61% Double‑Wide (37 units) • Homes with enhanced façade design • Two off‑street parking stalls per unit • Full sidewalk network • Tree‑lined streets • Neighborhood park/play area: playground, basketball court, open space • Community center/storm shelter • On‑site storage options (garages, sheds, storage units) We believe some of the goals the Council has discussed that can be achieved through the project include but are not limited to: • Expanded affordable and workforce housing options • New mortgage products created through NeighborWorks Home Partners or similar partners • Increased population and school enrollment • Activation of long‑vacant North Industrial Park land • Additional property‑tax generation and elimination of current City tax expense on this parcel • Increased public‑utility usage 13 • Progress toward northwest enhancing opportunity to have road and trail connections to Co Rd 20 via the future Washington Avenue extension. • Progress toward a regional stormwater pond • Creation of a new neighborhood park and additional park funding ## FISCAL IMPACT: The development is expected to generate approximately $15,000–$30,000 annually in property taxes, benefiting the City, School District, and County. The City currently pays $15,000 annually on the vacant land; transferring the property will eliminate this cost. Approximately 60 new homes will connect to City utilities, generating monthly utility revenue and hook‑up fees. The City plans to issue a bond and apply with CoNorth for Minnesota Housing Agency (MHF) grant funds to support project infrastructure. Any uncovered costs will be assessed back to the developer. Grant funding is expected to reduce infrastructure costs and ultimately lower home and lot prices increasing affordability. The property (Outlot B; Parcel 19.671.002; 9.6 acres) is currently valued at $483,700. Under the agreement, it will be transferred to CoNorth at no cost—similar to past transactions with other affordable‑housing partners. No additional City financial incentives will be provided. This type of dense, facility‑built, cooperatively financed development is new and untested in Minnesota. Financial and risk‑mitigation strategies mirror some of those used successfully in other City‑led subdivisions, such as Traverse Green. Key risk‑management components include: • City‑led design to City standards • City ownership of infrastructure • Cooperative ownership model • Use of assessment‑waiver agreements previously applied in other housing projects which pay for cost of the infrastructure ## ALTERNATIVES AND VARIATIONS: Do not act: Staff will wait for additional direction however a significant delay can mean an inability to submit grant application and meet engineering and construction timelines we have previously discussed. Negative vote: Staff will inform CoNorth. Modification of the resolution: This is always an option of the Council. Please feel free to contact me if you have any questions or concerns about this agenda item. ## BB/TP 14 ## CI ## TY ## OF SAINT PETER & ## CONORTH ## DEVELOPMENT ## AGREEMENT This Agreement, Made and entered into this ____ day of ____, 2026 (the “Effective Date”), by and between the City of Saint Peter, a municipal corporation organized under the laws of the State of Minnesota, hereinafter referred to as “City” and CoNorth, a Minnesota Nonprofit Corporation, hereinafter referred to as “CoNorth”. Witnesseth that: Whereas, the City currently owns the Subject Property (described below): ## Outlot B, Block 1, North Industrial Park Subdivision No. 3 Parcel 19.671.0002 (~9.58 acres) ## Outlot E, North Industrial Park Subdivision Parcel 19.666.0350 (~1.73 acres) and the Klein Street Right-of-Way (~1.45 acres) Whereas, one of the City’s main goals is to provide additional housing opportunities at various affordability levels; and Whereas, CoNorth’s mission is to transform lives and communities by: 1) focusing on facility- built home communities managed through a cooperative enterprise model, 2) providing direct support to residents with low-income to take control of their futures, and 3) promoting affordable, self-governing communities that will last for generations; and Whereas, CoNorth is seeking approximately 15 acres to develop a cooperative housing neighborhood that could support up to 60 affordable facility-built housing units with accessory storage units, a community center, and a neighborhood park; and Whereas, the City has researched and evaluated over a dozen properties within City Limits and along the edge of town, that could potentially host such a development; and Whereas, the City owns 15 acres of land in the North Industrial Park, including Klein Street and North Washington Avenue Right-of-Way, referred to as the “Klein Street Site”; and 15 ## W hereas, the City has determined that the Klein Site provides the best opportunity for the CoNorth development to be successful. Now, Therefore, in consideration of the premises and mutual promises and conditions hereinafter contained, it is hereby agreed as follows: 1. Assignment. CoNorth may, at its sole option, assign its rights under this Agreement, in whole or in part, to a nonprofit or cooperative corporation (the “Cooperative”) to be formed for the purpose of purchasing the Subject Property, and upon such assignment CoNorth shall provide to City written notice of such assignment (including the name and address of assignee) together with a copy of the executed assignment and assumption document. No assignment shall release or discharge CoNorth from any obligations of CoNorth under this Agreement. 2. Term. The term of this Agreement shall commence on the Effective Date and shall continue for a period of three (3) years, unless (a) earlier terminated pursuant to the provisions of this Agreement or (b) the Closing of the conveyance of the initial Phase of the Property has occurred prior to said three years, in which case this Agreement shall be automatically extended until all obligations arising hereunder are fulfilled. 3. Land. The City agrees to transfer landownership of the Subject Property to CoNorth, subject to the terms and conditions of this Agreement. Closing on the land shall be contingent on and subject to financing requirements as set forth in this Agreement. a. Development. The proposed project will include homes, common areas, and amenities as well as public roads and utilities. The parties anticipate that some portions of the development, including public roads and utilities, will be constructed by the City (the “City Improvements”), and other portions may be constructed by CoNorth or the Cooperative (the “Private Improvements”). Further, the determination of which party performs which parts of construction may be determined by financing constraints. The City and CoNorth will jointly work together on planning, platting, and approvals for the Subject Property, as contemplated by this Agreement. b. Infrastructure Plans. Within one year following the Effective Date, CoNorth and the City will agree, in writing, on the plans for the City Improvements, Private Improvements, and all other infrastructure work for the Project (as approved, the “Infrastructure Plans”), including specifically (i) final plans and specifications for such work, (ii) obligations for construction of such work (i.e., by the City, CoNorth or the Cooperative), (iii) funding and financing for such work, (iv) plans for Phasing and platting of the Property, and (v) timeline for completion of all infrastructure (road and utility) work and for conveyance of the Subject Property to CoNorth. Thereafter, all construction and development of the City Improvements will be completed in accordance with the Infrastructure Plans. c. Financing. The parties anticipate the possibility of one or more grants funding, ## including through the Cooperative Manufactured Housing Infrastructure Grant Program (the “CMHI Grant”) in favor of the City in an amount that will cover a portion of the City Improvements for the Subject Property, as well as potential grants funding from other local, state and/or federal sources, which may be made in favor of the City, CoNorth and/or the Cooperative. All proceeds of the CMHI Grant will be applied to the City Improvements. Concurrent with approval of the Infrastructure Plans pursuant to Section 3.b above, the parties will agree in writing as to all sources 16 and us es of grants or other funding related to the development of the Subject Property. Any costs of the City Improvements that are not fully reimbursed by the Grant or other public financing or grants will be assessed against the Subject Property, for a term not less than thirty years. d. Pre-Closing Approvals. Prior to and as a condition of the conveyance of the first Phase of the Subject Property to CoNorth, the City and CoNorth will agree in writing on the Infrastructure Plans, the costs of the City Improvements (including all sources and uses, including a reasonable contingency), the construction schedule for City Improvements and Private Improvements, and the assessment terms for the City ## Improvements. Thereafter, any changes to the Infrastructure Plans, City Improvements, schedule, or cost allocations and assessments therefore shall be subject to approval of both parties. e. Construction. The City will promptly commence construction of the City Improvements following approval of all matters required by the preceding subsections of this Section 3. The parties anticipate that construction of the City Improvements for the first Phase will occur in summer 2027. 4. Exclusivity. CoNorth shall have exclusive development rights during the term of this agreement. In the event the City breaches this exclusivity provision, the City shall reimburse CoNorth for all reasonable and documented third-party predevelopment expenses incurred in connection with the proposed development, including but not limited to engineering, surveying, environmental review, legal, planning, financing, grant- writing, and consulting costs, within sixty (60) days of receipt of documentation supporting such expenses. 5. Zoning. CoNorth shall prepare and submit and the City shall authorize (as landowner) and otherwise support an application for a Residential Planned Unit Development (RPUD) with appropriate base zoning, such as: Mobile Home Park (MHP), Multiple Family Dwelling (R-3), or Limited Industrial (I-1). NOTE: This agreement shall become null and void by written notice from either party to the other, if the proper zoning approvals do not allow for the proposed residential project to take place on the Subject Property or if the parties fail to reach agreement as contemplated by Section 3 above. 6. Density. The proposed development shall contain no more than sixty (60) homes within the neighborhood. 7. House construction. Houses placed or constructed within the development shall have electric stoves, electric clothes dryers and electric water heaters if those appliances are provided as amenities in the home. 8. Subdivision Plat. Prior to the sale of the Subject Property, the City shall create and process a preliminary and final plat for the Subject Property appropriate to the approved Infrastructure Plans and phasing consistent with the phasing contemplated by Section 37. The costs of such platting shall be paid pursuant to Section 10. Unless required for property title reasons, it is not the intention of CoNorth to subdivide the property into a single lot/parcel for each residential home unit. Instead CoNorth’s intent is to have all the future homes located on a limited number of lots/parcels. 17 ## 9. S treets and Easements. The final plat shall dedicate streets, alleys, drainage and utility easements to the City for public purposes. 10. Plans. Prior to development of the site, the following plans shall be prepared by the City’s contracted engineer (likely Bolton & Menk), at the joint direction of CoNorth and the City, and subject to payment and/or reimbursement pursuant to Section 3 and Section 10. All plans are subject to the standard approval process of the City, including ## the Public Works Department, Community Development Department, and City Engineer: ## a. Existing Conditions Survey ## b. Site / Development Plan ## c. Building Pad/Envelope and Setback Plan ## d. Street/Utility Cross Section Plan e. Utility Plan (water, sewer, electric, stormwater) ## f. Grading Plan ## g. Road & Curb Plan ## h. Sidewalk & Trail Plan ## i. Hardscape Plan ## j. Landscaping Plan ## k. Community Center Plan ## l. Neighborhood Park Plan ## m. Accessory Storage Plan ## n. Phasing Plan Any architectural or other plans for vertical improvements, such as the Community Center, will be generally prepared at the direction of CoNorth. 11. Initial Engineering Work. CoNorth shall provide the City with a $35,000 retainer (“Retainer”) to cover a portion of the cost for initial design, engineering, land surveying, and platting work. Said payment shall be made within thirty (30) days after the execution of this Agreement. As said design, engineering, land surveying and platting costs are incurred, 50% will be charged against the Retainer, and the remaining 50% paid by the City until the Retainer is exhausted. , Thereafter the City shall be responsible for all amounts incurred in excess of said Retainer. If this agreement is terminated at any time, any portion of Retainer not yet incurred will be refunded to CoNorth. 12. Neighborhood Roads. All internal roads within the development shall be dedicated as public roads and constructed to the approved City standards. 13. Road Access. The CoNorth development shall be allowed no more than (2) ingress/ egress accesses to/from Klein Street. 14. Klein Street. Klein Street may be realigned by the City (with plans and costs therefor to be agreed upon pursuant to Section 3), to make additional development room for the project. The realigned Klein Street right-of-way and road shall gradually curve from its current termination point to the eastern property line of the Subject Property. Construction of the road and utilities along Klein Street may be completed in phases. 15. Klein Street Vacation. A portion of the existing Klein Street right-of-way, that was dedicated with the North Industrial Park Subdivision plat, shall be vacated by the City at the same time as the new plat is approved. 18 ## 16. W ashington Avenue. The existing Washington Avenue platted right-of-way, located north of the neighborhood project area, may be used as a temporary stormwater pond location and/or be developed into an urban section with paved roadway, curb, sidewalk/trail, and utilities. The City shall determine the timing and extent to which Washington Avenue will be constructed. The City Improvements, including any construction of Washington Avenue, shall include adequate stormwater drainage for the Subject Property, which shall be subject to approval by CoNorth. 17. Utility Connection. Any water or wastewater utility services, located in Klein Street and adjacent to the Subject Property, that are not intended to be used to serve the site, shall be completely removed and capped off within Klein Street per City standards. Said removal along with any associated pavement patching and restoration work shall be included in the City Improvements. 18. Regional Stormwater Improvements. CoNorth agrees to pay standard City and/or watershed district fees for assessments associated with the development of a regional stormwater pond benefiting the development property. 19. Sidewalk. A 6 ft. wide concrete sidewalk shall be installed within the adjacent Klein Street right-of-way boulevard, as part of the City Improvements. The Klein Street sidewalk shall be constructed by the City along with each development phase. Sidewalks shall also be constructed along the internal neighborhood streets according to the City approved plan, as part of the City Improvements. The City shall be responsible for designing, installing and paying for all costs associated with said sidewalks, which shall be included in the Infrastructure Plans. 20. Off-Street Parking. Each residential unit shall be required to have two (2) off-street parking stalls. Retaining larger, usable green space areas near homes and throughout the neighborhood shall be considered when locating parking areas. 21. Improvements. The City shall be responsible for constructing and obtaining standard construction warranties for all infrastructure improvements associated with the City Improvements, including but not limited to roadway, curbing, sidewalks, utilities, and stormwater basins. CoNorth shall be responsible for constructing and obtaining warranties for the Private Improvements. The responsibility for construction, as well as sources and uses of funds, for all City Improvements and Private Improvements, shall be determined and agreed upon in the Infrastructure Plans, pursuant to Section 3. 22. Ownership of Improvements. Upon completion of the work and construction required by this agreement, and following the City’s acceptance of the project, public improvements lying within the public right-of-way and easements shall become City property without further notice or action. 23. Construction. The construction, installation, materials, and equipment shall be in accordance with the approved plans, City standards and specifications, and current City policy. 24. Construction Observation. The cost of City Improvements to be assessed may include costs for observation fees consistent with City policy and standards. 19 25. Fai thful Performance of Construction and Bond. The City may include the cost of a two-year warranty or performance bond for the workmanship and materials following the City Council’s final acceptance of said public improvements in the total cost of the City Improvements to be assessed to CoNorth. 26. Erosion Control. Each party conducting grading and construction shall take erosion control measures during grading of the site and construction of the improvements, as indicated on the Infrastructure Plans and/or on the grading plan and erosion control plan submitted to the City, and shall provide a Stormwater Pollution Prevention Plan and obtain all proper permits for land disturbing activities through the City and Minnesota Pollution Control Agency that assures local and State compliance. 27. Assessments. CoNorth or the Cooperative (i.e., the owner of the Subject Property at the time such assessments become due) shall be responsible for paying the City for all associated and related improvement costs documented within the City approved assessment agreement, as the same are approved pursuant to Section 3. 28. Lighting. The City shall be responsible for installing all the streetlights throughout the neighborhood, and for installing any lighting associated with the neighborhood park, or community center building, the costs of which shall be paid pursuant to Section 3. CoNorth will be responsible for construction and payment for any ancillary lighting associated with neighborhood storage units and neighborhood signage. 29. Community Center Design. The neighborhood community center shall be constructed and furnished by the City or CoNorth (as agreed upon in the Infrastructure Plans pursuant to Section 3), and then continually maintained by the Cooperative. The design of the Community Center building shall be approved by the City through administrative review within 30 days of submitted plans. 30. Home Design Standards. Prior to conveyance of the Subject Property to CoNorth or placement of any home on the Subject Property, a list of home design standards shall be approved by the City through administrative review within 30 days of submitted plans, and shall remain in effect unless otherwise expressly approved by CoNorth and the City. 31. Accessory Storage. Each residential unit shall have at least 25 square feet of accessory storage (garage, shed, storage unit) provided within the neighborhood for each unit. 32. Parkland Dedication. 1.8 acres (12%) parkland dedication is required for the residential project. Since a semi-public neighborhood park (1 acre) is proposed, half- credit (1/2 acre) will be counted towards the parkland dedication requirement. Therefore, CoNorth will be required to provide payment-in-lieu-of-parkland funds to the City in the amount of $19,500 (1.3 acres x $15,000 land value). 33. Neighborhood Park. The neighborhood park (approximately 1 acre) shall be constructed and equipped by the City or CoNorth, as agreed in the Infrastructure Plans pursuant to Section 3, and then continually maintained by the Cooperative. 34. Completion Date. All grading, infrastructure construction, and restoration work for Phase I shall be completed by the City within 36 months from the Effective Date, unless modified by mutual agreement. 20 ## 35. H ome Ownership Product Offering. CoNorth shall not offer homes for sale without identifying at least one qualified lender partner to provide home loan products tailored to the affordability and accessibility goals for the project at the time of sale. CoNorth will use commercially reasonable efforts to identify financing products that are appropriate for this ownership structure and accessible to the households the development is intended to serve, which may include personal property loans, specialized manufactured home loan products, down payment assistance, interest-rate assistance, credit enhancements, or other public or private financing resources. CoNorth anticipates these products to be originated by a combination of NeighborWorks Home Partners, First Alliance Credit Union, and banks and credit unions local to St. Peter as well as additional partners to be determined. 36. City Attorney Fees. CoNorth shall be responsible for paying to the City associated attorney fees, in an amount not-to-exceed $2,000. ## 37. INTENTIONALLY OMITTED 38. Phasing and Conveyance. The Subject Property will be conveyed to CoNorth (or the Cooperative, as assignee) in up to three Phases, each containing approximately twenty manufactured home sites. The City and CoNorth will agree on the specific timeline for conveyancing at such time as the parties agree on the Infrastructure Plans and related agreements pursuant to Section 3. As of the Effective Date, the parties anticipate that the initial Phase will be conveyed within thirty days after completion of all City Infrastructure related to or necessary for occupancy of the initial Phase. Thereafter, each subsequent Phase shall be conveyed within twelve months following the preceding conveyance (but not earlier than the date on which all City Infrastructure is complete for such Phase); provided, however, that CoNorth may, at its option, delay any subsequent conveyance until such time as 90% of the manufactured home sites within the preceding Phase are occupied. Conveyancing shall be completed pursuant to Exhibit B attached hereto. 39. Grant Funding. Any State of Minnesota grant funding awarded to the City related to the Subject Property and this project shall be used to pay down the total project assessment, including engineering work, as contemplated by Section 3. 40. Assessment Project. If the project is financed as a Minnesota Statute Section 429 Assessment Project (429), then CoNorth shall provide the City with a waiver of right to contest the assessment. Closing on the property shall take place to coincide with the 429 process. City to provide CoNorth with documentation supporting the assessment amount, and all assessments shall be agreed upon pursuant to Section 3, ahead of filing for the assessment. 41. Notices. Any notices permitted or required to be given or made pursuant to this Agreement shall be delivered by email, FedEx, personally, or mailed by the United States Postal Service to the addresses hereinafter set forth by certified or registered mail. Such notices, demand or payment shall be deemed timely given or made (a) when delivered personally or by email, (b) one business day after deposit with FedEx for overnight next-business day delivery, or (c) five business days after deposit in the United States Postal Service in accordance with the above. Addresses of the parties hereto are as follows: 21 ## If to the City: City of Saint Peter ## ATTN: City Administrator ## 1441 Civic Way ## Saint Peter, MN 56082 and: ## City Attorney ## 1441 Civic Way ## Saint Peter, MN 56082 If to the Developer (CoNorth): CoNorth ## ATTN: Victoria Clark-West 2300 Myrtle Avenue – Suite 190 ## Saint Paul, MN 55114 42. Liability. Each party is solely responsible for its own acts or omissions associated with the tasks and deliverables covered by this Agreement. The liability of the City is governed by Minn. Stat. Chapter 466 and other applicable law. 43. Miscellaneous. A. Third parties shall have no recourse against the City or CoNorth under this Agreement. B. If any portion, section, subsection, sentence, clause, paragraph or phrase of this agreement is for any reason held invalid, such decision shall not affect the validity of the remaining portion of this Agreement. C. The action or inaction of the either party shall not constitute a waiver or amendment to the provisions of this Agreement. To be binding, amendments or waivers shall be in writing, signed by the parties and as against the City, approved by written resolution of the City Council. Either party’s failure to promptly take legal action to enforce this Agreement shall not be a waiver or release. D. Each right, power or remedy herein conferred upon either party is cumulative and in addition to every other right, power or remedy, express or implied, now or hereafter arising, available to such party. Any such right, power or remedy may be exercised from time to time as often and in such order as may be deemed expedient at any time thereafter any other right, power or remedy. E. Neither party may assign nor transfer any rights or obligations under this Agreement without the prior written consent of the other party except as provided in Section 1. F. Minnesota Law governs the validity, interpretation and enforcement of this Agreement. Venue for all legal proceedings arising out of this Agreement, or its breach, must be in Nicollet County, Minnesota. G. The parties must comply with the Minnesota Government Data Practices Act, Minn. Stat. Ch. 13, as it applies to all data provided by under this Contract, and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the 22 par ties under this Agreement. The civil remedies of Minn. Stat. § 13.08 apply to the release of the data referred to in this clause by either of the parties. H. This Agreement may be terminated (i) at any time by mutual agreement of the parties, or (ii) by written notice from either party in the event the parties are unable to reach agreement as required by Section 3. I. No party will be responsible to the other for a failure to perform under this Agreement (or a delay in performance), if such failure or delay is due to a force majeure event. A force majeure event is an event beyond a party's reasonable control, including but not limited to, unusually severe weather, fire, floods, other acts of God, labor disputes, acts of war or terrorism, government “shutdowns” or public health emergencies. J. Under Minnesota Statutes §16C.05, subdivision 5, the books, records, documents and accounting procedures and practices of the City relevant to this Agreement are subject to examination by the Legislative Auditor for a minimum of six years. ## Signatures Appear on Following Page 23 ## SI ## GNATURE PAGE TO ## DEVELOPMENT AGREEMENT IN WITNESS WHEREOF, the City and CoNorth have caused this agreement to be duly executed on the day and year first above written. ## CITY OF SAINT PETER (CITY): _______________________________ ## Shanon A. Nowell, Mayor ____________________________ ## Todd Prafke, City Administrator ## CoNorth ## By ## Victoria Clark-West ## Title Executive Director 24 ## E ## XHIBIT A ## DEVELOPMENT PLAN DEPICTION 25 ## E ## XHIBIT B ## CONVEYANCING PROVISIONS 1. Property. At each conveyance, the City will convey to CoNorth (or the Cooperative, as assignee) the applicable Phase of the Subject Property, together with all improvements constructed or located thereon (other than public infrastructure improvements), and all easements and rights benefiting or appurtenant to such Phase. 2. Due Diligence. Conveyancing shall be subject to CoNorth having completed all due diligence that CoNorth deems appropriate, including but not limited to title, survey, environmental and geotechnical investigations. From and after the Effective Date, CoNorth and its agents shall have the right to enter upon the Subject Property to conduct such due diligence. If due diligence indicates any concerns, CoNorth and the City shall work together to resolve such concerns to the satisfaction of both parties. In the event CoNorth is not satisfied with the results of its due diligence, in its sole discretion, CoNorth may terminate this Agreement and receive a refund of any Retainer funds not yet used in pursuit of development of the Subject Property. 3. Closing. The closing of the conveyance of each Phase (each, a “Closing”) shall occur at the office of the title company to be selected by CoNorth. The City shall deliver possession of the applicable Phase to CoNorth on the applicable Closing date. At each Closing, the City shall execute and deliver to CoNorth the following (collectively, “Closing Deliveries”), all in form and content reasonably satisfactory to CoNorth: a. Deed. A Limited Warranty Deed conveying the applicable Phase to CoNorth, free and clear of all encumbrances. b. Affidavit of Seller. A standard form seller’s affidavit. c. Bring Down Certificate. A certificate from the City reaffirming, as of the Closing, the truth and accuracy of the representations and warranties contained in this Agreement. d. Other Documents. All other customary and reasonable documents reasonably determined by CoNorth or the Title Company to be necessary to transfer the Subject Property as required hereunder. 4. Costs. All costs relating to the Closing shall be allocated as between the City and CoNorth in accordance with custom in the county in which the Subject Property is located, as determined by the title company. All income and expenses attributable to the applicable Phase, including real estate taxes but excluding special assessments, shall be prorated between the parties as of the applicable Closing date. 5. City Representations. The City represents and warrants the following to CoNorth (collectively, the “Representations”): a. Title. The City has and will convey to CoNorth marketable, fee simple title to the Subject Property. b. Unrecorded Agreements. There are no unrecorded leases, agreements, undertakings or restrictions which affect the Subject Property. The City shall not enter into any leases, agreements, undertakings or restrictions without the prior written approval of CoNorth. 26 c. O perations. The City has received no notice of actual or threatened cancellation or suspension of any utility services at or on the Subject Property, nor has the City received any notice of any violation of any applicable regulations, codes or statutes. Except as may be approved pursuant to Section 3, the City has no knowledge of any actual or threatened special assessments or reassessments with respect to the Subject Property. d. Environmental Laws. Except as disclosed in writing to CoNorth, to the actual knowledge of the City: (i) no hazardous or toxic substances (“Hazardous Substances”) have been generated, treated, stored, transferred from, released or disposed of, or otherwise placed, deposited in or located on the Subject Property in quantities or concentrations which would violate any applicable statute, ordinance, regulation or other law relating to protection of the environment (collectively, “Environmental Laws”), relating to the protection of the environment; (ii) there are no Hazardous Substances in, under or on the Subject Property that may support a claim or cause of action under any Environmental Law relating to the protection of the environment; and (iii) the Subject Property is not now, and never has been, listed on any list of sites contaminated with Hazardous Substances, nor used as landfill, dump, disposal or storage site for Hazardous Substances. e. No Proceedings. To the actual knowledge of the City, no legal or administrative proceeding is pending or t hreatened (i) which would adversely affect its right to convey the Subject Property to CoNorth as contemplated in this Agreement, or (ii) affecting the Subject Property, including, but not limited to any condemnation or eminent domain proceedings with respect to the Subject Property. f. Private Sewage Systems; Wells. To the actual knowledge of the City, there are no private sewage systems or wells located on the Property. 27 ## Ne w North Neighborhood FAQ: 8/ 2026 1 ## New North Neighborhood Overview ## Frequently Asked Questions ## Th is information is current as of August, 2 026. The answers below reflect the goals, intentions and plans based on details currently available. Details, numbers and timelines will be finalized when the work moves forward. ## Ho me Costs and the Neighborhood ...................................................................................................... 4 How much will the homes cost? ..................................................................................................... 4 What will the homes be like? ......................................................................................................... 4 How many people will live in the neighborhood? ........................................................................... 4 Are there existing communities like this? ....................................................................................... 4 Why does the plan for the neighborhood include its own community center? ............................... 4 What happens in case of severe weather? .................................................................................... 5 What are the provisions for parking, garages, and exterior storage? ............................................ 5 What streetscape and architectural design options are available? ................................................ 5 Does the neighborhood plan provide diverse building appearances and curb appeal? ................ 5 Are there other parcels of land for this project? ............................................................................. 6 Cooperative Homeowners’ Association Make-up and Purpose ............................................................ 7 Cooperative track record of success .............................................................................................. 7 Cooperative HOAs Keep Homes Affordable .................................................................................. 7 Why is a co-op necessary for this project? Why couldn't this just be a typical neighborhood without the coop? ........................................................................................................................... 8 What prevents investors from renting out these homes? ............................................................... 8 What’s included in the monthly co-op dues? ................................................................................. 8 What will a homeowner own? ........................................................................................................ 8 Does everyone in the co-op pay the same amount in dues? ......................................................... 9 If people buying the homes owned the land, wouldn't their home appreciate more? .................... 9 CoNorth: Northcountry Cooperative Foundation ................................................................................. 10 28 ## Ne w North Neighborhood FAQ: 8/ 2026 2 How does the New North project align with housing needs in St. Peter? ................................... 10 Will New North require ongoing subsidy to remain affordable? ................................................... 11 Homes and Foundation Types ............................................................................................................ 12 Are these mobile or trailer homes? .............................................................................................. 12 How are these homes different from the homes in existing manufactured home communities? . 12 Why a mix of modular and manufactured homes? ...................................................................... 12 How do the homes connect to the land? ...................................................................................... 12 What would it take to make many/any of these homes accessible from the outside? Can we get close to zero entry for at least some of them? ............................................................................. 13 How much will the foundation cost? ............................................................................................. 13 Does the foundation type impact the ongoing costs of utilities and home maintenance? ........... 13 Are these homes safe in severe weather? ................................................................................... 13 Can you get rid of the chassis? .................................................................................................... 13 Does the chassis interfere with attaching the home to a permanent foundation? ....................... 14 Do these homes have an energy rating? How can carbon goals of the climate action plan be met? How do the long-term costs of energy factor into the homeowner costs? .......................... 14 Miscellaneous ..................................................................................................................................... 15 What’s the anticipated timeline? ................................................................................................. 15 How will CoNorth use local builders and contractors? ............................................................... 15 How would this neighborhood compare to a mobile home park, a land trust, or a “traditional” single-family neighborhood subdivision with a Homeowners’ Association? ................................ 15 Homebuyer Financing & Resources ................................................................................................... 16 What lenders will provide a mortgage for the homeowner? ......................................................... 16 Will the home be titled as real property or as personal property? ................................................ 16 How do community members without a social security number qualify? ..................................... 16 What examples or evidence is there that manufactured homes will appreciate in value like traditional site-built single-family homes and offer the chance for families to build generational wealth? ......................................................................................................................................... 16 Project Financing ................................................................................................................................ 18 Can you share a draft pro forma? What are the sources and uses for the project? .................... 18 Who will finance the construction costs and how? ....................................................................... 18 How does CoNorth make money? Is there a financial incentive for CoNorth in doing this project? ..................................................................................................................................................... 18 29 ## New North Neighborhood FAQ: 8/ 2026 3 What financial support is expected from the St. Peter City Council? ........................................... 19 What is the City's contribution to the project? Land, site improvements for roads and utilities, etc.? ............................................................................................................................................. 19 What can the City of St. Peter do to make this project happen? ................................................. 19 Definitions ........................................................................................................................................... 20 30 ## New North Neighborhood FAQ: 8/2026 4 ## Home Costs and the Neighborhood How much will the homes cost? Homebuyers will have three choices. The prices are projected to be between $115,000 to $250,000. The goal is to keep a family’s total housing cost each month to 25% of their monthly income or less. That total cost includes the mortgage on the home, utility costs and dues owners will pay each month for common expenses. For example: ● One family makes about $71, 400 per year or $5,950 a month. The goal cost for their mortgage, dues, and utilities would be $1,488 or less. ● Another family’s income is $95, 200 per year or $7,933 a month. The goal cost for their mortgage, dues, and utilities would be $1,983 or less. In St. Peter today, people with these incomes are teachers, utility workers, hourly workers at the college, hospitals, schools, and core businesses like Alumacraft Boat Co. and Creation Technologies. The rooms are all on one level which makes the neighborhood attractive for seniors and retirees as well. What will the homes be like? All homes will have three bedrooms and two baths. They will be built in a facility and moved to the neighborhood. The size of the home and its finishings will determine the price. The most expensive homes will have a garage and basement. How many people will live in the neighborhood? There are 60 homes in the current design. We expect about 150 people to live in these homes. Are there existing communities like this? This development combines elements that exist in many communities around the country but have not been implemented here. There are new construction neighborhoods that use homes built in facilities all over the country. There are cooperative neighborhoods in Minnesota and around the country. Why does the plan for the neighborhood include its own community center? CoNorth has helped many cooperatives build community centers. The standard design features an office, bathrooms, full kitchen, storage, and a central gathering space. 31 ## New North Neighborhood FAQ: 8/2026 5 The center becomes the heart of the community. It provides a place for the cooperative board to hold its monthly meetings and annual membership meeting. Most communities use the center for tutoring programs and classes, summer activities for school-aged children, a lending library and fresh food distribution center, and of course graduation parties, birthdays, holidays and other family events. Often, in partnership with other organizations, the space is used to help teens and adults prepare for job interviews, find financial and legal information, or simply sit and read a book. What happens in case of severe weather? We understand the concerns about safety; most of them stem from communities built in the 1960s and 1970s before the HUD Code improvements that make facility-built homes as safe as other homes. That said, families in New North have options during severe weather. ● People can shelter in an interior room such as a closet or bathroom without windows. ● Homeowners can choose to include a storm cellar in their home. ● The community center includes a storm shelter. Homes built to modern HUD code meet wind performance standards in line with the weather in this region. What are the provisions for parking, garages, and exterior storage? All homes will have a two-car driveway. Some homes will have an attached garage. Those without a garage will have a storage shed. The neighborhood plan also includes exterior storage units that homeowners may rent from the cooperative for storage and vehicles. What streetscape and architectural design options are available? The project will meet City of St. Peter requirements for street design. In addition, the project has a variety of street widths, and each street includes sidewalks to encourage walkability. CoNorth anticipates the homes to have a select number of architectural design options, including the color of siding and home features like garages. Does the neighborhood plan provide diverse building appearances and curb appeal? As you’ve seen, most modern subdivisions offer very little visual variety. That’s why a strong priority in the New North plan features great community and street-facing appeal. Three home styles provide physical variety. A selection of colors ensures that every home is different from its neighbor. In addition, the homes all have front porch features to provide neighborhood engagement and a walkable feel. 32 ## New North Neighborhood FAQ: 8/2026 6 CoNorth’s experience shows that homeowners in cooperatives love gardening and place a high value on trees, landscaping, and flowers to have a beautiful surrounding environment. CoNorth will work with co- op members to put in place landscaping and beautification projects they identify. Are there other parcels of land for this project? The Klein Street site is ideal for this neighborhood. It’s connection to surrounding neighborhoods, trails and walking paths, and proximity to schools and outdoor recreation. The New North neighborhood compliments surrounding housing options, which include affordable (subsidized) rental homes and site- built homes. 33 ## New North Neighborhood FAQ: 8/2026 7 ## Cooperative Homeowners’ Association Make-up and Purpose All homeowners in the New North neighborhood will be part of a cooperative homeowners’ association. Owners will elect a board of directors and officers. This group sets the rules, goals, and governance standards for the community. Setting up the community as a cooperative from the start means: ● Bringing homeowners together makes it more affordable to own the land ● Self- determination on the use of shared resources ● Membership rules and eligibility criteria that respect fair housing requirements ● No profit motive for outside investors ● Economy of scale to get discounts on common maintenance services as a group rather than each homeowner by themselves ● Ready-made organization to address community needs (after school programming, senior walking group, yard work for those that can’t physically perform, etc.) CoNorth brings its decades of experience to the community to support the work of homeowners. Ongoing support from CoNorth includes board member recruiting, education, budget planning, best practices, and leadership development. Cooperative track record of success Cooperatives have a proven track record of success in Minnesota and across the country, including in St. Peter. ● Like the other cooperatives that CoNorth supports, New North will remain affordable. ● CoNorth helps communities get lower interest rates to buy land under their homes. ● There are no shareholders to pay. The people voting on the membership dues are the people who will have to pay them. ## Cooperative HOAs Keep Homes Affordable Cooperative homeowners associations create affordable housing, good neighborhoods and build wealth for people. With “starter” homes no longer profitable for builders, cooperatives provide the American dream of homeownership. The New North Cooperative is structured as a “limited equity cooperative” (see definitions section). That structure allows funding to be directly connected to cooperative ownership. Limited equity maintains affordability over generations of housing sales. Homes appreciate in value and homeowners build equity. When a homeowner sells, they receive the equity from the sale of their home. The homeowner also gets their money back for their share of the cooperative. That share does not appreciate. If the homeowner paid $1000, they will get $1000. The new homeowner will only pay $1000 for a share of the 34 ## New North Neighborhood FAQ: 8/2026 8 cooperative, just like the seller did. This is another way cooperatives keep homes affordable into the future. Once the co-op has paid off the financing for the underlying land, the co-op can choose to reduce the monthly dues to its members. Why is a co-op necessary for this project? Why couldn't this just be a typical neighborhood without the coop? It could, but the financing of the land would need to be added to the mortgage sizing of each homeowner. The neighborhood would not have a community center. The homeowners would lose the benefits of maintenance and purchasing power support over time. The neighborhood would have less of a sense of shared mission and community. What prevents investors from renting out these homes? The co-op bylaws for the community require the homes to be owner-occupied. What’s included in the monthly co-op dues? Most of the dues go to pay for the land which the co- op will own. Dues also pay for property management services, maintenance and care of commonly owned property. Co- op members decide if they want to buy additional services together and pay for them through dues. What will a homeowner own? Homeowners in a limited equity manufactured home community like New North: • Own their home • Own their share in the corporation that owns the land and common areas. • Will have a lease that forever ties the home to the lot in the community. See the table on the following page for more information. 35 ## New North Neighborhood FAQ: 8/2026 9 ## What You Own Proof of Ownership ## Upfront ## Costs ## Ongoing ## Costs Rights & Responsibilities of ## Ownership ## Resale & Appreciation ## Home ## Deed Down Payment & ## Closing ## Costs ## Monthly mortgage payment, taxes, insurance, and utilities Take care of your home Abide by co-op rules (including any resale restrictions when you sell your home Outgoing homeowner provides co-op notice when they intend to sell their home. Homeowner sells home and retains all equity from the sale. ## Co-op ## Membership ## Share ## Proprietary Lease (gives homeowner exclusive right to the land underneath their home) ## Membership ## Agreement (governs member’s participation and interest in the cooperative) ## Membership share (one -time fee; the goal is to keep the share price as low as feasible) ## Monthly membership dues (covers the costs to operate the cooperative) Pay monthly dues Participate in the co-op (attend membership meetings, serve on the board and committees) Co-op returns share to outgoing homeowner when home is sold. Share does not appreciate. Does everyone in the co-op pay the same amount in dues? Often co-ops choose to charge the same for every home. The New North co- op will set dues that are fair for the services each home gets. This is a detail that will be finalized as the work moves forward. If people buying the homes owned the land, wouldn't their home appreciate more? The homebuyers do own the land as members of the cooperative. The co-op structure strikes a balance to help ensure homes remain affordable and at the same time appreciate in value. 36 ## New North Neighborhood FAQ: 8/2026 10 ## CoNorth: Northcountry Cooperative Foundation How does the New North project align with housing needs in St. Peter? CoNorth's New North Cooperative project aligns with the recommendations identified in St. Peter's 2024 Housing Study related to affordable homeownership: ## 1. Meeting Demand for Owner-Occupied Housing • The New North Cooperative contributes directly to the projected need for 110 to 120 owner-occupancy housing units over the five-year period by creating opportunities for cooperative homeownership. • This initiative focuses on St. Peter as the primary location for future construction activity, aligning with the study's emphasis on serving household growth in the city. ## 2. Promoting Affordable Homeownership Programs • Affordability Focus: The New North Cooperative offers an alternative to rising home prices (median sale price of $255,000 in 2023) by providing lower-cost cooperative housing options that enable homeownership for income-eligible households. • Continued Assistance: Like the city's efforts with affordable lot subdivisions and Community Land Trust (CLT) units, New North Cooperative integrates affordability into its structure, ensuring long-term accessibility for low- and moderate-income residents. ## 3. Supporting the Development of Very Affordable Homes • The project aligns with the recommendation to produce 2 to 3 very affordable homes annually by expanding housing options for those unable to purchase traditional homes, addressing demand from marginal homebuyers. • By utilizing efficient construction methods and cost-conscious strategies, New North Cooperative helps to bridge affordability gaps for households that may not qualify for Habitat for Humanity homes or other ownership options. ## 4. Promoting Entry-Level Home Construction • New North Cooperative helps create housing opportunities that fall below the $350,000 threshold, appealing to the growing 35-44 age group seeking entry-level homes. • By prioritizing affordability and sustainability, the cooperative expands access to homeownership, contributing to the 27% to 38% of future new construction targeted at affordable market segments. ## 5. Leveraging Suitable Lots • The project may utilize or complement available lots in areas such as Traverse Green or other infill locations, maximizing the city's land use for affordable housing development. ## 6. Expanding Ownership Models 37 ## New North Neighborhood FAQ: 8/2026 11 • New North Cooperative introduces an innovative homeownership model that adds diversity to the housing market, complementing existing strategies like Habitat for Humanity and CLT homes. • By offering shared equity and cooperative governance, the project provides an additional pathway to stability and community ownership for households unable to access traditional single-family homes. ## 7. Long- Term Community Impact • Like the city's prior initiatives, the cooperative model ensures lasting affordability, contributing to a sustainable and inclusive housing market in St. Peter. • The project addresses both immediate and future needs, helping the city achieve its goals for affordable and entry-level housing over the next five years. Will New North require ongoing subsidy to remain affordable? No, the plan is for the community to no longer need subsidy after the initial development. Today CoNorth supports more than 1,200 households in 18 communities across Minnesota and Wisconsin. It’s part of a national network of similar nonprofits providing financial, organizational and practical advice to cooperative boards and residents. They educate homeowners, share what works— and doesn’t—to create successful communities. Cooperative homeowners associations create affordable housing, good neighborhoods and build wealth for people. With “starter” homes no longer profitable for builders, cooperatives provide the American dream of homeownership. 38 ## New North Neighborhood FAQ: 8/2026 12 ## Homes and Foundation Types Are these typical mobile or trailer homes? No. They are drastically different from the old mobile or trailer homes built in the 1960s and 1970s. These homes are modern and built in a facility under strict quality and safety standards. Federal regulations and materials used to build the homes have changed dramatically over the years. The January 2021 federal HUD code for homes built in a facility has requirements beyond those for any other home. How are these homes different from the homes in existing manufactured home communities? New North homes requirements go beyond today’s HUD requirements. ● Built to a High-Performing Code. The code that manufactured homes are built to have come a long way since the HUD Code was first established in 1976. The building code for today’s modern manufactured homes is virtually indistinguishable from the building code of other facility-built homes, including modular. ● Sustainable and Energy Efficient. The homes will be insulated and include central heating and cooling from an electric heat pump or high efficiency gas furnace. They are reviewed by an approved quality assurance provider to ensure the facility meets certification and maintenance standards. ● Accessible. All the homes are single-level. Access ramps at the entries are available features for residents that need additional accessibility. Why a mix of modular and manufactured homes? The New North plan includes some modular homes. Modular homes are built in the same facilities with the same materials as New North homes. The modular homes offer larger floor plans with more options for cosmetic upgrades. However, the added cost for the modular home options makes the home unaffordable for many people in St. Peter who earn hourly wages. How do the homes connect to the land? CoNorth worked with Tekton Engineers, a local structural engineering firm, to design a permanent foundation. The system they designed installs the home near ground level. It includes frost footings, poured concrete walls, and a crawl space that is recessed into the ground. The home is attached to the 39 ## New North Neighborhood FAQ: 8/2026 13 permanent foundation with through-bolts just like site-built homes are attached with through-bolts to their foundations. The final design for each home is matched to the soil conditions for long term stability. ## Figure 1 Foundation diagram by Tekton Engineers Does the foundation type impact the ongoing costs of utilities and home maintenance? The crawlspace foundation is designed to minimize ongoing utility and maintenance costs compared to other less expensive foundation designs. The crawl space is insulated so that the utility connections withstand Minnesota’s extreme temperatures. The 36-inc h crawl space allows the underside of the home to be well-maintained. The homes offer an internal access hatch to enter the crawl space. Are these homes safe in severe weather? We understand the concerns about safety. The image many people have is homes built before the extensive requirements found in the new HUD Code. The fact is, when today’s modern homes are installed correctly, the facility-built home is as safe as any other home. Homes in St. Peter’s New North neighborhood will be to a standard beyond the rules specific to weather in this region. Can you get rid of the chassis? Almost. You won’t even know it’s there once the home is installed in the neighborhood. The hitch is removed and the chassis will recess into the crawl space. In addition, HUD requirements include a chassis. And it’s the most cost-efficient way to move the home from the facility where it is built to the neighborhood. 40 ## New North Neighborhood FAQ: 8/2026 14 Does the chassis interfere with attaching the home to a permanent foundation? No. The chassis is recessed within the foundation walls. Just like a home that’s built on site is attached to its foundation using sill plates and through-bolts, these homes will be attached in a similar way with through-bolts through its bottom-facing framing. 41 ## New North Neighborhood FAQ: 8/2026 15 ## Miscellaneous What’s the anticipated timeline? The project is in the planning and pre-development phase. After groundbreaking, the site work, streets, and utilities will likely take about six months. Home sales for the first phase will also take about six months. Building and installing the homes will take another six months. Once CoNorth has secured the land and financing, the physical development phase can begin. It will likely take 18 months from groundbreaking to getting all residents in the first phase moved in. How will CoNorth use local builders and contractors? CoNorth and our partners will work with city officials to meet or exceed all local policies, rules, and expectations regarding the use of local builders and contractors. How would this neighborhood compare to a mobile home park, a land trust, or a “traditional” single-family neighborhood subdivision with a Homeowners’ Association? In a “traditional” subdivision with an HOA the homeowners must pay for the land. This makes ownership unaffordable for too many families. Resident homeowners set the rules and the fees in cooperatives. Fees typically cover expenses and sound fiscal management responsibilities. The dues do not include profit for landowners or shareholders. 1970s Mobile ## Home Park ## New North ## Neighborhood ## Land ## Trust ## Other Single Family ## Homes Little up-front cost to homeowner    Real Property home title    Stable annual expenses    Home appreciates, owner builds wealth  ()  Cooperative homeowners association  Ongoing expert advice, education  42 ## New North Neighborhood FAQ: 8/2026 16 ## Homebuyer Financing & Resources What lenders will provide a mortgage for the homeowner? CoNorth is working to bring forward several lending options for homebuyers to have choices that match their family’s needs. To do that, CoNorth will seek a combination of national and local lenders. CoNorth partnered with NeighborWorks Home Partners to create a lending product similar to those offered in New Hampshire, Vermont, and Maine. NeighborWorks created these products specifically for resident-owned communities like the New North neighborhood. Key features include fixed rates, low down payments, and terms up to 30 years. In addition, CoNorth has started outreach to local banks to understand their existing lending programs for manufactured housing and adapt them for this purpose. Once the project moves forward, these options will be finalized. Will the home be titled as real property or as personal property? Lenders currently view these homes as personal property instead of real property. An effort is underway for Minnesota law to allow cooperatively-owned homes to be titled as real property. This has not happened yet, however. CoNorth is working with title companies and legal experts to ensure this is an option for New North homes. How do community members without a social security number qualify? Cooperative memberships don’t require a social security number. The goal is to have multiple financing options for New North homeowners. These options will include a home financing product that allows buyers with an Individual Taxpayer Identification Number (ITIN) to qualify. An Individual Taxpayer Identification Number (ITIN) is a 9-digit number the Internal Revenue Service (IRS) issues to people filing a tax return who are not U.S. citizens and who do not have or are not eligible for a Social Security number. What examples or evidence is there that manufactured homes will appreciate in value like traditional site-built single-family homes and offer the chance for families to build generational wealth? A New York Times report found that manufactured homes actually appreciated at a higher percentage over a period of time than traditional site-built homes (From 2014-19, U.S. Census data found 43 ## New North Neighborhood FAQ: 8/2026 17 manufactured homes rose 39% over their median value, as compared to 33% for traditional homes). 3 ## A more recent National Public Radio report confirmed no significant difference in the appreciation rate of manufactured homes versus site-built homes, showing manufactured home values rose 34.6% from 2016-21, compared to 35.4% for traditional homes. 4 Simply put, facility-built homes appreciate in value equal to site-built homes. Further, the academic research from New Hampshire shows that manufactured homes in cooperatives (like New North) appreciate in-line with site-built homes. 5 However, this body of work indicates that the most important aspect of appreciation is homeowner control of the land and access to affordable financing. With the cooperative model and the financing options that will be available for this project, the New North neighborhood will incorporate those two essential components. 3 Kolomatsky. M. (2021, September 12). Mobile home values have been migrating upward at breakneck speed. New York Times. https://www.nytimes.com/2021/12/09/realestate/mobile-home-values-have-been-migrating- upward-at-breakneck-speed.html 4 Yang, M. (2022, October 27). Mobile homes are rising in value but current residents can't cash out. National Public Radio. https://www.npr.org/2022/10/27/1129699328/mobile-homes-housing-prices-value-inflation-houses- rent 5 Ward, French, Giraud. (2006). Building Value and Security for Homeowners in “Mobile Home Parks:” A Report on Economic Outcomes. Carsey Institute at the University of New Hampshire. https://static1.squarespace.com/static/51149157e4b00dcd7b6e0e8a/t/5114d505e4b0f297c4870bfc/13603197493 04/Building_value_and_security_2006.pdf 44 ## New North Neighborhood FAQ: 8/2026 18 ## Project Financing Can you share a draft pro forma? What are the sources and uses for the project? Please see below for preliminary sources and uses as of August, 2026. Who will finance the construction costs and how? CoNorth will take out a construction loan just like any other subdivision developer. The construction loan gets paid off as homes are sold and title transferred to the new owners. How does CoNorth make money? Is there a financial incentive for CoNorth in doing this project? CoNorth is a non-profit organization whose mission is to provide affordable housing solutions, just like other nonprofits you may be familiar with like Habitat for Humanity, Southwest Minnesota Housing Partnership, Beacon Interfaith Housing Collaborative, or CommonBond. CoNorth’s primary income comes from philanthropic supporters such as the McKnight Foundation, the Otto Bremer Trust, and the Bush Foundation. This public support greatly reduces the cost of CoNorth’s 45 ## New North Neighborhood FAQ: 8/2026 19 services that it provides to the communities it supports. CoNorth charges modest annual fees to each cooperative it supports as well as a modest placement fee for each home it supplies. What financial support is expected from the St. Peter City Council? CoNorth has asked the community to contribute the land and for an infrastructure loan from the city to pay back the costs of city-owned road, water, and sewer lines over time. Like in any other development, ongoing operations and maintenance of the streets, water and wastewater infrastructure, etc. will be part of city operations. What is the City's contribution to the project? Land, site improvements for roads and utilities, etc.? The City of St. Peter owns land located near Klein Street, which CoNorth would ask to be donated for the site of the new neighborhood. CoNorth would construct the neighborhood to St. Peter municipal specifications, covering the construction costs of roads, utilities, etc. What can the City of St. Peter do to make this project happen? ● Enter into a development agreement with CoNorth. ● Donate the land in support of affordable housing. ● Consider other options that would help make the homes more affordable. This could include streamlining or lowering permitting costs and inspection fees, sewer and water access charges, etc.. 46 ## New North Neighborhood FAQ: 8/2026 20 ## Definitions Area Median Income | Area median income — often referred to as simply “AMI” — is a key metric in affordable housing. Area median income is defined as the midpoint of a specific area's income distribution and is calculated on an annual basis by the Department of Housing and Urban Development (HUD). Affordable Housing | Affordable housing is generally defined as housing on which the occupant is paying no more than 30 percent of their gross income for housing. Blanket Mortgage | A loan taken out by a cooperative that covers all the property’s debt. Comprehensive Plan | The comprehensive plan, sometimes also referred to as a master plan or a general plan, is the foundational document of long-term planning and zoning in the United States. A comprehensive plan is an essential feature of long-term planning for cities and counties all over the United States, as both the process and the documentation for creating a broad, long-term vision for future land uses and the built environment of communities. Cost -Burdened | According to the Department of Housing and Urban Development (HUD), a household is considered cost-burdened when it spends more than 30% of its income on rent and utilities and severely cost-burdened when it spends more than 50% of its income on these expenses. Debt Service | The amount of money paid to a lender for a loan, including both interest and repayment of the loan itself. Equity | The difference between the market value of property and the total amount of all mortgages and liens against the property, which reflects the dollar value of the owner’s interests. In accounting terms, equity equals assets less liabilities. Expenses | The costs of operating the co-op, which usually fall into a few main areas: loan payments, administration, taxes, insurance, utilities, maintenance, and reserves. Facility-built or Factory-built home | “Facility-built” or “Factory-Built Home” is a generic term that refers to any home that has been predominantly designed and constructed in a controlled factory or plant environment. Homeowners Association (HOA) | A Homeowners Association (HOA) is a legal entity created within a residential community, such as a neighborhood, condominium complex, or planned development, to manage and govern the common areas and shared amenities of the community. Homeowners who purchase property within the community automatically become members of the HOA and are typically required to pay dues or fees to cover the costs of maintaining and managing the common areas and services. 47 ## New North Neighborhood FAQ: 8/2026 21 Housing Cooperative | A housing cooperative forms when people come together to own and control the buildings in which they live. Residents form a cooperative corporation, to which they pay a monthly amount to cover operating expenses. The cooperative owns the land, the buildings, and any common areas. Members buy shares in the cooperative. HUD Manufactured Home Building Code (aka: HUD Code) | The HUD Manufactured Home Building Code, also known as the HUD Code, is a set of construction and safety standards established by the U.S. Department of Housing and Urban Development (HUD) for manufactured homes. This code regulates the design, construction, performance, and quality of manufactured homes to ensure they meet specific safety, durability, and energy efficiency requirements. The HUD Code was enacted in 1976 as part of the National Manufactured Housing Construction and Safety Standards Act in response to concerns about the quality and safety of manufactured homes. Prior to the HUD Code, manufactured homes were commonly referred to as mobile homes and were subject to varying state and local building codes, resulting in inconsistencies and potential safety hazards. The HUD Code establishes uniform standards for manufactured homes across the country, covering aspects such as structural integrity, fire safety, electrical systems, plumbing, thermal insulation, and overall construction quality. Homes that comply with the HUD Code receive a certification label indicating their compliance, which is required for financing, insurance, and resale purposes. The HUD Code has evolved over the years to incorporate technological advancements, energy efficiency standards, and improved construction practices, ensuring that manufactured homes continue to provide safe and affordable housing options for millions of Americans. Homes are installed to local building code requirements, which vary from state to state and are codified in the appropriate building code. In Minnesota, the current standard is the 1997 Uniform Building Code and all homes must follow that standard. Limited Equity Housing Cooperative | A limited equity housing cooperative (often referred to as an “LEC” or “LEHC”) puts restrictions on a unit’s sale price, with the restrictions outlined in the cooperative’s bylaws. This type of cooperative is designed to maintain long-term housing affordability. While most public sector programs have limited timelines—after which affordability disappears—a limited equity cooperative can continue offering benefits forever. Limited equity cooperatives ensure long-term affordability in a number of creative ways, including limits on resale price. Condos and single-family homes, on the other hand, are always priced at market rate, and may lose affordability over time. Transaction costs for buying or selling are also much lower for cooperative members, since separate title searches and title insurance are unnecessary. Finally, cooperatives can borrow collectively for major improvements, pledging the building as collateral, and avoiding large special assessments common to condo ownership. 48 ## New North Neighborhood FAQ: 8/2026 22 Limited Equity Formula | The formula describing how member equity may appreciate, and which affects the price at which the member may attempt to sell their co-op unit. Market Rate Housing Cooperative | A market rate housing cooperative sells shares at full market value in the original sale and permits future unit sales at market value. Much like conventional real estate, a unit’s sale price is determined by the market, allowing for potential accumulation (or loss) of equity by the members. Membership Joining Fee (aka: Subscription Funds) | Money paid along with a Membership Agreement. ## Membership Agreement (aka: Subscription Agreement) | The Membership Agreement (sometimes referred to as a “Subscription Agreement”) is a written agreement between a person and the cooperative (in a form approved by the board of directors, and as specified in the co-op’s bylaws) in which such person agrees to execute an Occupancy Agreement, make the required down payment, assume monthly carrying charges, and become a member of the cooperative. Membership Dues | The monthly fee paid by each member of the cooperative. The money goes to cover the operating expenses of the cooperative. Proprietary Lease | The lease signed by a cooperative and a co-op member, which gives the member the right to occupy a specific lot or unit within the co-op. Resale | The process of transferring co-op shares from a member who is selling their share(s) in the co- op to a member who is purchasing share(s) in the co-op. Reserves | Money set aside from net income to meet expected or unexpected expenses; usually kept in a form (like a savings account) that is easily converted to cash. Reserves are commonly set up in housing cooperatives to cover maintenance and operating expenses. Share | Sometimes called a certificate, a share represents an individual’s right to occupy a specific space in the housing co-op. Workforce Housing | Workforce housing is generally understood to mean affordable housing for households with earned income that is insufficient to secure quality housing in reasonable proximity to the workplace. 49 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION APPROVING A DEVELOPMENT AGREEMENT WITH CONORTH ## FOR THE “NEW NORTH” DEVELOPMENT (15-ACRE RESIDENTIAL NEIGHBORHOOD) ## AT THE INTERSECTION OF KLIEN STREET AND (FUTURE) N. WASHINGTON AVENUE WHEREAS, one of the City’s main goals is to provide additional housing opportunities, including workforce housing and affordable housing, at various price levels; and WHEREAS, CoNorth’s mission is to transform lives and communities by: 1) focusing on facility- built home communities managed through a cooperative enterprise model, 2) providing direct support to residents with low-incomes and help them take control of their futures, and 3) promoting affordable, self-governing, communities that will last for generations. WHEREAS, CoNorth is seeking approximately 15-acres of land to develop a cooperative housing neighborhood that could support up to 60 affordable facility-built housing units with accessory storage units, a community center, and a neighborhood park; and WHEREAS, the City has researched and evaluated over a dozen properties within City Limits and along the edge of town, that could potentially host such a development; and WHEREAS, the City owns 15-acres of land within the North Industrial Park, including the Klein Street and (Future) North Washington Avenue right-of-way, referred to as the “Klein Street Site”; and WHEREAS, the City and CoNorth have determined that the Klein Street Site provides the best opportunity for CoNorth’s new residential development, titled “New North”, to be successful; and WHEREAS, the City and CoNorth have negotiated and worked together to create a Development Agreement, based on the goals and vision of both parties; and WHEREAS, the Development Agreement addresses a number of items, including, but not limited to: 1) assignment and exclusivity, 2) parkland dedication, 3) location and land transfer, 4) home ownership product offering, 5) zoning/land use, 6) funding, assessments, and fees, 7) engineering, construction plans, and phasing, 8) liability and notice), 9) improvements, and 10) conveyancing provisions. ## NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT ## PETER, NICOLLET COUNTY, MINNESOTA, THAT: 1. The Development Agreement between the City of Saint Peter and CoNorth, attached hereto, is hereby approved. 50 2. The Mayor and City Administrator are authorized to execute the Development Agreement. Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 24 th day of August 2026. _____________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: ___________________________________ ## Todd Prafke ## City Administrator 51 ## Memorandum ## TO: Todd Prafke DATE: 8/21/2026 ## City Administrator FROM: Pete Moulton Curtis Thompson Public Works Director Water Utilities Superintendent ## RE: Wastewater Treatment Plant Switchgear Emergency Replacement ## ACTION/RECOMMENDATION Authorize the emergency purchase and installation of the generator switchgear for the Wastewater Treatment Plant from Zeigler Cat Power Systems of Shakopee, Minnesota for the amount of $283,251.76. ## BACKGROUND The generator and controls at the Wastewater Treatment Plant were installed during construction of the plant and went online in 2003. The generator is used for emergency backup power as well as load management to help the City control our yearly peak demand, saving us money on the electricity we purchase. The generator is controlled by a switch gear that automatically starts the generator during a power outage or is manually turned-on during load management events. On June 30, 2026 staff attempted to start the generator during a load management event and the unit failed to work. Staff investigated the issue and our service representative determined that the control panel had failed. Due to the age of the equipment, the panel is now obsolete and cannot be repaired. The switchgear is currently still functioning in the event of a power outage but cannot be utilized for load management. The service tech is unsure of how long the unit will function under these conditions. Staff requested a replacement quote for the panel and all related obsolete components which was received on July 21, 2026. This quote is for the replacement of all components of the unit and includes a Sourcewell competitive bid purchasing discount. Making the repairs at this time will allow continued use of this piece of equipment and provide the City with essential backup power generation to our wastewater plant as well as the ability to load manage the plant to keep the City’s peak electricity demand down. With this in mind I recommend authorizing the purchase and installation of the equipment to provide reliable operation of our wastewater plant. ## FISCAL IMPACT: Funding for the emergency replacement of the Switchgear would come from the 2026 Wastewater reserves or would be financed based on the funds available. 52 ## ALTERNATIVES/VARIATIONS Do not act: Staff will seek additional Council input. Negative vote: Staff will seek City Council direction. Modification of the Resolution: This is always an option of the City Council. Please feel free to contact me should you have any questions or concerns. ## PM/CT 53 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION AUTHORIZING EMERGENCY REPLACEMENT OF ## WASTEWATER TREATMENT PLANT SWITCHGEAR WHEREAS, the generator and controls at the Wastewater Treatment Plant are 23 years old and have failed; and WHEREAS, replacement parts are difficult to find with the supplier not able to support the necessary repairs; and WHEREAS, dependable backup power is necessary for the plant to stay operational and meet compliance standards as set by the Minnesota Pollution Control Agency (MPCA); and WHEREAS, Zeigler Cat Power Systems is the sole provider of the equipment necessary to replace the failed components of the unit which includes a Sourcewell competitive bid purchasing discount; and WHEREAS, completing repairs at this time will allow continued use of this piece of equipment and provide the City with essential backup power generation to our wastewater plant. ## NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT ## PETER, NICOLLET COUNTY, MINNESOTA, THAT: 1. Authorize the emergency purchase and installation of the generator switchgear for the Wastewater Treatment Plant from Zeigler Cat Power Systems of Shakopee, Minnesota. 2. Funding for the emergency replacement of the switchgear in the amount of $283,251.76 will come from the 2026 Wastewater reserves or would be financed based on the funds available. Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 24 th day of August 2026. ___________________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 54 ## Memorandum ## TO: Todd Prafke DATE: 8/21/2026 ## City Administrator FROM: Pete Moulton Jason Lee Public Works Director Electric Superintendent RE: Final Acceptance and Closeout of 15kV Switchgear for the Front Street Substation ## Improvements ## ACTION/RECOMMENDATION Accept the 15kV switchgear improvements at the Front Street Substation as complete and authorize final payment to Harold K. Scholz Co. in the amount of $12,545.00. ## BACKGROUND In the Spring of 2024, Council authorized Harold K. Scholz Co. to move forward with the Front Street Substation improvements. The Front Street Substation is located just east of the old City Hall. In the Electric Master Plan, the Front Street Substation required improvements consisting of modifying the existing 69/13.8kV substation. Phase 1 of the project was completed in 2018. Phase 2 included removing and replacing the remaining older power transformer, the 13.8kV outdoor reclosers, and the voltage regulators. Additional work included uprating and reconfiguring all six electrical circuits served by the substation. All work in Phase 2 is now complete. The Contractor’s original bid amount was $250,900.00 and the final construction cost was $250,900.00. I recommend accepting the project as completed to City specifications and that final payment be authorized. ## FISCAL IMPACT: Funding will come from the Electric Utility budget as a bonded expenditure. ## ALTERNATIVES/VARIATIONS Do not act: Staff will seek additional Council input. Negative vote: Staff will seek City Council direction. Modification of the Resolution: This is always an option of the City Council. Please feel free to contact me should you have any questions or concerns on this agenda item. ## PM/JL 55 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION ACCEPTING THE 15KV SWITCHGEAR IMPROVEMENTS AT THE FRONT ## STREET SUBSTATION AS COMPLETE AND AUTHORIZING FINAL PAYMENT WHEREAS, the City Council authorized improvements for the Front Street Substation in the spring of 2024; and WHEREAS, improvements consist of modifying an existing 69/13.8 kV substation by removing and replacing the T1 power transformer, the 13.8kV outdoor reclosers, and voltage regulators; and WHEREAS, the contractor was responsible for supplying all labor and some materials; including conduit, control cable, power cable, terminators, elbows, hardware, etc. to complete the project, and WHEREAS, plans and specifications for this improvement project were completed per City standards. ## NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT PETER, NICOLLET COUNTY, MINNESOTA, THAT: the City Council accepts the work and authorizes final payment to Harold K. Scholz Co. of Ralston, Nebraska in the amount of $12,545.00. Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 24 th day of August 2026. ___________________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 56 ## Memorandum ## TO: Honorable Mayor Nowell DATE: 8/21/2026 ## Members of the City Council ## FROM: Todd Prafke ## City Administrator ## RE: Library Flooring Replacement Project Bid Acceptance ## ACTION/RECOMMENDATION Approve a resolution awarding one bid and one proposal for the 2026 Library Flooring ## Replacement Project: • A bid from Berger Interiors of Saint Peter, Minnesota, in the amount of $100,189.85 for flooring materials and installation. ## BACKGROUND This project was included in the adopted Library Fund budget for 2026. The work consists of removing and replacing original carpet, tile, and vinyl flooring throughout the library building. The existing flooring has reached the end of its useful life, and replacement will improve durability and appearance for patrons and staff. In accordance with the City’s purchasing policy, formal bids were solicited. One complete bid was received for the flooring installation work. After review, staff recommends awarding the materials and installation contract to Berger Interiors of Saint Peter, Minnesota. ## FISCAL IMPACT: Funding for the project was budgeted as part of the Library fund budget and is less than the $150,000 that was budgeted.. ## ALTERNATIVES/VARIATIONS: Do not act: No further action will be provided without additional Council direction. Negative Vote: Work will not take place unless further action is taken by the Council. Modification of the Resolution: This is always an option of the Council. Please feel free to contact me should you have any questions or concerns on this agenda item. ## TP/ks 57 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 – ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION AWARDING THE BID FOR 2026 LIBRARY FLOORING REPLACEMENT ## PROJECT TO BERGER INTERIORS WHEREAS, formal bids were solicited following the City’s purchasing policy for removing and replacing original carpet, tile, and vinyl flooring throughout the library building; and WHEREAS, one formal bid was received from Berger Interiors of Saint Peter, Minnesota; and WHEREAS, one proposal was received for the moving the library shelves; and ## NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT ## PETER, NICOLLET COUNTY, MINNESOTA, THAT: 1. The bid for the 2026 Library Flooring Replacement Project shall be awarded to Berger Interiors of Saint Peter, Minnesota in the amount of $100,189.85. 2. Funding is provided in the Library fund. Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 24 th day of August, 2026. ## Shanon A. Nowell ## ATTEST Mayor ## Todd Prafke ## City Administrator 58 ## Memorandum ## TO: Honorable Mayor Nowell DATE: 8/21/2026 ## Members of the City Council ## FROM: Todd Prafke ## City Administrator ## RE: Request for Assistance: Saint Peter Art Stroll ## ACTION/RECOMMENDATION Approve a request for City assistance for the Saint Peter Art Stroll. ## BACKGROUND Organizers of the Saint Peter Art Stroll have requested City assistance in installing approximately a dozen light pole banners for their event that takes place on September 26 -27, 2026. They will be installed in the downtown area along Hwy 169. The organizers are requesting the banners be installed by September 7 th and removed after the event. ## FISCAL IMPACT: The expected cost for the requested assistance will be $500.00. ## ALTERNATIVES/VARIATIONS: No vote: No further action will be provided without City Council approval. Negative Vote: No City assistance will be provided without additional direction from the Council. Modification of the Resolution: This is always an option of the Council. Please feel free to contact me should you have any questions or concerns on this agenda item. ## TP/ks 59 ## CITY OF SAINT PETER, MINNESOTA ## RESOLUTION NO. 2026 - ## STATE OF MINNESOTA) ## COUNTY OF NICOLLET) ## CITY OF SAINT PETER) ## RESOLUTION AUTHORIZING CITY ASSISTANCE FOR SAINT PETER ART STROLL WHEREAS, Saint Peter Art Stroll is a community event held on September 26-27, 2026; and WHEREAS, the organizers have requested City assistance in setting up and removing light pole banners in the downtown area along Highway 169; and WHEREAS, the City Council recognizes the community benefit this event provides. ## NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAINT ## PETER, NICOLLET COUNTY, MINNESOTA, THAT: 1. City Staff shall install light pole banners prior to September 7 th and remove the banners after September 27 th . Adopted by the City Council of the City of Saint Peter, Nicollet County, Minnesota, this 24th day of August, 2026. ___________________________________ ## Shanon A. Nowell ## Mayor ## ATTEST: _________________________________ ## Todd Prafke ## City Administrator 60