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3. SHA Letter to City Council - Arts Heritage Center Project - 26Feb2021 PO Box 159 | Scandia, Minnesota 55073 ScandiaHeritageAlliance@gmail.com | 651.233.0267 www.ScandiaHeritage.org February 26, 2021 Mayor and Members of the City Council City of Scandia 14727 209th St. N. Scandia, MN 55073 Regarding: Scandia Heritage Alliance, Finding of Site Suitability and Proposed Minimum Redevelopment Plan and Request for Extended Exclusive Development Period Dear Mayor and Members of the City Council: As provided in Section 5.1 of the Redevelopment Agreement between the Scandia Heritage Alliance (the “SHA”) and the City of Scandia (the “City”), SHA hereby advises the City that its various site investigations (soil borings, preliminary soil infiltration investigation, survey, wetland delineation, civil engineer feasibility study and preliminary grading plan, and master plan development) have shown the site to be a suitable for the reconstruction/rehabilitation of the Water Tower Barn, the construction of an amphitheater, and all necessary site improvements (the “Project” and “Minimum Improvements”). SHA hereby requests approval by the City of its site suitability analysis and its Minimum Preliminary Project Plans, in accordance with Section 5.2 of the Redevelopment Agreement, and the approval of the 5-year extended Exclusive Development Period (All capitalized terms not otherwise defined shall be as defined in the Redevelopment Agreement). First, as contemplated in Section 4.3, SHA has provided to the City final copies of its soil borings, survey, wetland delineation, and various site engineering and investigation reports. In addition, SHA and its architect and other consultants have met with the City staff and the Washington Conservation District (wetland advisor to the City) and the Carnelian Big Marine Lake Watershed District regarding the site suitability. Based on this work, pursuant to Section 5.1, SHA has determined the site to be suitable, not only for the initial Project, but also for later additional development beyond the initially contemplated Minimum Improvements. The City staff have voiced agreement in this finding of the Property suitability in our meetings. SHA requests the City Council formally accept this determination. Second, as contemplated in Section 5.2, the SHA has provided the City with the Minimum Preliminary Phase 1 Project Plans (copies of which are attached hereto) showing the architectural plans, location and elevations of uses, including buildings, parking, trails/driveways, and the amphitheater. SHA requests the City’s approval of these Minimum Preliminary Phase 1 Project Plans and the extension of the Exclusive Development Period for an additional five (5) years. PO Box 159 | Scandia, Minnesota 55073 ScandiaHeritageAlliance@gmail.com | 651.233.0267 www.ScandiaHeritage.org Third, SHA has been working with the area’s legislators, Rep. Bob Dettmer and Sen. Karin Housley, in preparation of legislation requesting State Bond Financing for the Project. This legislation has been introduced in the House by Rep. Dettmer and in the Senate by Sen. Housley. SHA believes the Project will have excellent prospects for inclusion in the 2022 bonding bill. In accordance with Section 6.1 (a), SHA requests the Council approve the submission of a bonding request pursuant to Minn. Stat. §16A.695 for 2022 bonding for the Project in the amount of $1.5 Million. Further, SHA requests the Council authorize and direct City staff (i) to prepare such submissions as required by Minnesota Management and Budget for the bonding request and (ii) to work with SHA in support of the bonding legislation as appropriate and consistent with other City staff obligations. SHA is extremely excited and pleased to submit these requests to the City. We have made extraordinary progress in spite of the COVID-19 pandemic restrictions to bring the Project to this level of feasibility. We eagerly anticipate working with the City on the next steps to bring the Project to the point of full funding and construction. We have assembled a very strong advisory group to help us launch our next phase financial efforts, and we are well along in our efforts on State bonding, with the able legislative assistance of local resident Bill Strusinski. Thank you for your attention to this request. Sincerely, SCANDIA HERITAGE ALLIANCE _________________________________________________________________ Susan Rodsjo, Scandia Heritage Alliance President and Board Chair Scandia Heritage Alliance Board of Directors: Leila Denecke, Scandia Artist |John Herman, Esquire | Pamela Plowman Smith, Business Owner | Christine Maefsky, Scandia Mayor | Sarah Porubcansky, Scandia Tourism Committee Chair | Susan Rodsjo, Marketing Communications Consultant Enclosures: -Minimum Preliminary Project Plans, including proposed area for the land lease -Signed Redevelopment Agreement between City of Scandia and SHA