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HomeMy WebLinkAbout7.d. USPCI Development Commitment Discussion i � � ITEM 7 September 29, 1989 T0: Mayor Hoke Na e� , Councilmemberss ��borough Wa1sh Wipgermann FROM: Stephan Jilk, Administrator/Clerk RE: USFCI Development Commitment Trust Agreement Citp staff has c ontinned to discuss the gb°vthroughetheir lega�- documents with representatiee of USP�I bot couasel and corporate offices. tion of two items which we are yet discussing With the excep tters, we have reached con��'�eviewAandth \ regarding procedural ma ou for you documents and wish to present them to p consideration. ment" basicallp ��t� out those financial The 'tDevelopment Commit �hich USP�I ig �a�ing and which the commitments to the citeCt will trigger � The commitment does not permitting of the groj an citq action except to cooperate with USPCI in require p rocessing the permits. reviewing and P a ment of funds into ti�e - Rosemount Community Trust a�d �-�� s The commitmo�toratedre��rences the p Y +� "USPCI, Inc p standing as a separate document. how s ecificallp how it is created, The Trust then sets and howpfunds will be expended from it. it wiil be managed, ith ou here the basic concepts of the Commitment I would review W p would affect the city � Please refer to document and how thep specific section number for discussion• • ect �nd statements Sections 1-2. Are simplY ° v er viewing the proj I about it. rQ ect. 3. Is recognition of aPprovals needed for t�e p j Section ro ect. Sec tion 4. Is the statement on the "benefit" of` �h� p � _ _ - - - —�—,__ __ - -- - _ - -- ----_ ___ _ _----_ -- - __, _ __ __ . z - crrY oF �os�nvrrr � �te�c�. c�o��rr r. �EPT� 29, 1989 CITY CIT][ Z+O�AL TOTAL SERYIGS FEES SSRVICB t�G. AVAILABLE AVAII�IB�.S CHARGE QtSDTT AoAt1.�w.F W O TRUST �iITH TRt}5T ___ $121,500 ($45,000) $ 76,Sfl0 $ 93,50Q $16$,540 175,500 ( 5,000� 170,500 187,50� 252,500 202,500 - 202,500 219,500 296,500 202,500 - 202,500 219,500 296,500 • 202,50Q - 2�2,St� 219,500 296,500 ' 202,500 - 202,Sfl0 202,5� 303,7Q0 202,500 - 202,500 202,5� 327,700 202,5� - 202,500 202,5� 351,700 202,500 - 202,500 2Q2,500 375.700 2Q2,500 - 202,50Q 202,500 399,7p0 $ 1,867,0� $ 3,073,fl00 $ 2,879,50� � 5,114,930 $ 3,$92,000 $ 7,952,800 Lity does better the City will callect funds at a faster ra�e - conversely, a � � aot re�lect any assumed esc�latian in fees as set out in the documents relating to � i k�rn on the principal invested. At pear 10 that principle is estimated ta be �le is estimated to be $5,500,000. �roperty owner/developer for this pro,�ect with esti.m�te given by Dakota Cc�unty to r to be the City's share. � i � I i ` '' _ � , , D�VEL08M8�I' COkMIT�NT US�CI, iNC, (herein referred to as "tiSPCI"') a Delawa�e carperatio� wi�h its princigal affice at Fiaustor�, T�xas and its lacz�I office at Rosemount, Minneaota, makes the follow�ng repres�ntations and ao�itsnents to the CITY bF RD�EMOUNT, a Minnesdta mun�.��pal corpo�;�►tion ioc�ted in Dakota Caunty, Mirinasota (herain referr�ad to as "'Cit�r�') . WITNESSETH: l. Pro�ect - I�acility. USPCI prvposes to locat� in the City a nan-ha�ardaus indu�triaT waste c+�ntainment t'aGility ('"the Faci�ity or "the Project") as generally described in bath the Enviror�menta3 Assessment Report dated Novemb�r 28, 2988, prepared by Environmenta� Engine�rinq and Manag�ment, Ltd. , a copy of which Enviranmental Assessmen� F,eport {h�rein referred to as "'EAR'�} has been provided to the City as well as the Pre].irninary � � Permit Application d�ted Apri3, 1989 whiGh was a3so prepared by Environmenta2 Enginaering and Managem�nt, Ltd. The Facility wiil be located an approximately 240 acres of Zand (pthe Prop�rtyy) as is more spe�ifica2ly described on the attached Exhihit hA", which a.s incorporated herein by ref�r�nce. �he proposed Faci2ity is a Hstate of th� art� praject and will a2low containing of non- hazardous industria�. waste in a manner vastly superiox to the way these wastes axe presently being dispased of in Dakota County. 2. Environmental Impact S�.atement. USPCI has affirmatively request�d an Environmental Impact Stat�mer►t (yETS"j of th� Praj�Ct which study fs pr�sently underway. r9/29�89 � : R , . �. . � • . . . . . . . . . 3. � rovals. It is under�taod that variou� gavernmental appYova�� are required for the Pro�e�t including r�pprovals at the federt�i, stata, �nd ragiona]. as weli as local l�vel. 4. Economic B+anefits. The F�cility, in additian to provid;ing a "'stata af tha artx facility for the hans�linq o� non- hazardous industrial waste, wil� algo pro�r�d� economic benafit to the City, at� herein provid�d, in addition �o offering th� potent�.al Po� further encour�g�ment of industrf,al dev�Iopment in �he City. NOW, THEREFdRE, UBPCY her+eby represents and Commit� ta the city as fol2aws: 5. City Approval. Th� commi�:nents herein contained are subject to USPCI abtaining all governmentaZ approvals requir�d for the Project, including but not limited tv all germits, authorizations and approvals from the City required to a12ow construction, op�ration and maintenance af th� Facili,ty. The � co�mitments are further canditioned upon the issuance, existence and cc�ntinuance of a21 p�rmits, approvals and authorizations required to a21cw construction, operation and maintenance o� said Facility. 6. USPCI to Prviceed. USPCI agrees to construct, op�ra�e and maintain the Facility on all or a portion af the Praperty, as outlined in tha EA.R, subject t� abtaining all necessary approvals and subject to such modifica�ion, if �ny, as may be required, and agr�ed to by USPC2 resulting fram the EIS or reasonable mandates from other approving authorities. . . . - . � � 2 w . . . . . . . . . . : `{ • i ?. Tax Tncrement Financinv. USPCI understands the capabilitiss of the City or ite HRA to establish and operate �AX INCREMENT IIISTRICT3 in th�ir pxoqram to expand indumtrial �nd commercial dev�lapment in ths City. =n art effart ta a�ai�t in this e=fort USPCI will not ohject to the City or its HRA in establishment of such � dis�rict to i»clude the property. 8. F�rk Dedication Fees. USPCI reco5nizes the City of Ros�mount's Park and Recreation developmer.t program and the method�t the City us�ea trx �und thia progr�m by cvll�ctic►n of "Park DediC�ttion F'eesa. USPCI also recognizes the �quivalant payntent which woe�Id be requir�d to }ae pai� i� thefr Prc�ject would be required to go thrQugh a p2atting pxaeess. Because the Ci�y � could r�quire this platting and a speca.fic park dedication fee wou?d be rec�uired, although the Gity is not requiring that the Property be pZatted, USFCI ai�? voluntarily make a nan-refundabl� payment of $85,000 in lieu of the park dedicatior� fee. This is- � the am�unt of ten (1a) acres equivalent dedicativn or �en (10) times the current ger acre value for this purpose. (2.989 value af $8, 500 per �cre � $85,000) . The payment may b� made in five (5} equal annual installments of $17,000 each. The �"irst installment shall be due on the date the City issues a permit for the Pro�ect and subsequent installm�nts shail be due annually th�reaftsr on th� sa�e day each year for the next four (4) years. If USPCx decides to pay the fee in installments, it agre�� to furnish tha City an irrevocable letter of credit to guarant�e •. 3 _ `' ;, � • payment of the unpaid portion o� the �ee. The b�nk iesuing t�e letter of credit and the form of the letter of credit shall be apProvsd by the City. 9. option to Purchaee. At 5uch ti.m� as the storag� ce1.1s are complefi�d and c2osed, and the Faeility w�.11 no �.onger be ' accepting waste, th� Cfty will h�tve an optio� for a period of 12 months immediately subsequen� tc c1csing of th� �.ast cell, to purchase that portton of th� Pxdperty no� requixed �or closura and maintenance of the Faci�,ity. Sa3,d option right w�Il terminate, if not exerci�ed prior therato, 12 month� Qfter alasura vf the 1�st Cali. Tha purohase price wi3� be an amaunt equal ta SS percen� of ths value af the gropezty being purchased, as said value is d�termined by appraisal. USPCI sh�Il se2�ct ane appraiser �amil#,ar with rea3 estate values in Dakotia County and the city shall seleet one apprafser famiZiar w�th real e�ta�� values in Dakota County, Th� two appraisers shall select a third \ appraiser and the three appraisers shalZ proceed to determine the fair market value of the Prop�rty. If the two agpr�tisers � seZected by the Ci�y and UsPCI are unable to agr�e on the third appraiser, they shall agply ta the chief Judge of the District Caurt in Dakota County, Minnesota and the Chief Judge sha12 select the third appraiser. Any valuation agreed upon by a majority of th� appraisers shalZ be accepted as Einal by both USPCI and the City. Pa�rment shall be in cash, at closing, unless otherwise agreed by the parties with the Prapezty being sold in an "as is"' condition, free of al2 encumbrances and with seal esLat� taxes due in the year of closing pro-rafied to date of � 4 _ �' •� • � ciceing. USPC= shali provide to fi.he City an Ab�tract af Title or Rsg:stered Property Certificata, +avidencing 'mazketabl� titla, or title insurance fram a, title insurance company acoep�abl� to the City. USPC2 �hail have the right �o determ�n� which aareage is �ot required for clo�ur� and m�int�nanGe a,nd i� theze�'ox� �ub�ect to th�a terms of th3.s� option, which det�rmination sh�.11 be mad� at th� tim� o� closure of the l,sst ce1.1, Upan �lo�ure of the la�t ce�,1, USPCI shall notify �he City in writing of thi�s even�, areceipt of which notice shall ebainence the 12 month option period. Hotice of exsrcise of the opt�.c�n, durfng the optian tarm, sh�?l ba in writing d�livered to USPCZ. Clo�ing shall be within 94 days of notice of exercise o� the option. The City may, during the term of th� option, exercise same and purchase th�. Praperty, but �ha2l� �ot be under any obliga�fon to do sa. Tf priQr to closure of t�he fina3 ce1.l, a pvrtion of the Praperty has been conveyed to the Metropolitan Wast�� ControZ Facility foz its � use and purposes, a� is presently contemplated wzth referenc� to approximately ten {�,Oj " acres af the suhj�c� Property, said Property shall be excluded from tha Property to which the option rights sha1.1 apply. If requested by the City, USpGI will �xecute and deiiver to the City a reaZ esta�e opt:�on in standard rQcordable farm, setting forth the terms of this option. 10. City Service Charge. a. Basis for Char�e, USPC2 recognia�s certain aspects . af the priar-apprava]. review, placement and op�ration af a Facility of the nature proposed in a residential/rura]. type city has required and wil2 furth�r require the City to expend funds _ � _ �' /� � � �� � . . . . � for the Pr�-approval revf�w $nd the ongoi�q monitoring of the operation of the FacilitY, the admi�istration of t.he ps�i�, ��,r the Fac�.lity and ihteracti.on with USPCI artd atate, Cour�ty and �ed�ra�, agencies. The Gity m�ty incur other oosts ��BoCiat�d with tha Facility and i�ts �,�pact an �h� City. b. Base Sary�,ce Char e. To off�et thase costs, USPCI wi31, for e�ch ton o� waste deposited into the Facility, pay t,he Czty a �ity Serv�ce Charge. The City Service Charge wh�ch shall. initiallY be 1,mposed� cammencing wi�h the first day the Fa�ilft Y a�cepts wasta, �shall be computed at th� rate of $2.75 per ton, t'or each ton �coeptad and diaposad o� in tha Facility. Tonnaq� camputatien for th� ci�y Servfce charge shall be the same as for the waste Generation charge. mhis City Service Charg� shall be sub�eGt to adjust�ent, from tim� to time, and offset, as hereinafter pravzded, Paym�nts sk��a21 be made monthly to the City at 2875 - 145th Street West, Rosemount, Minnesot� 55058, or such other �ocation designated in writ�.ng by the City. Payments for each montx: shal� be due by the 25th day of the followzng month. c. Generator Char e Ad�'ustment. At the pr�sent time it is anticipated that �he initia.2 per ton fee charged by USPCI to waste qenerators (�Waste Generata� Charge") wi1� be $75.4(� per ton, and the City Service Charge payable to the City, is predicated o� that anticzpat�d waste Generator Charge. If the Waste Generator Charge is �.ncreased or decreased by USPCI (oth�r than as a resu�,t of an increase in amc�unts due governrnental entities after the Facility commences aperation, such as �pecia� taxes, perrnit fees, etc. , which governme.ntally required �ncreases _ 6 _ ' ' � � �h�11 not �.mpact tha p�r tdn aharge due the C�ty pur�uant to t2iis paragraph} then the City Sezvice Charge eh�l1. be ad�us�ted pro- r�ta. Accordingly �rid by way af oxampl�, if th�re _is a ten �10} perCent increa�e iri the Waste Generatvr Charge (othar than governmenta2ly mandated) �then the City 5er+✓i�,a Charge� shal� Zikewise b� increased by �en (ZO) percenfi. Adlustment based on this subparagraph (a) $hall be applied ta the praviaus3.y existinq City Service charga, befcre the follcwing adjustments or offsat�, d. A�justme` n�r Futur� Rsquired, Lec�ir�lativeZy z_ mposed�ar Neaatiated Pa�ments. If there aze future re irad - ,_�. . � , negotiated or legisl�tf.ve].y mandatecl p$yments due to �he City by uSPCI (other t:�an �s grovided herein) the inten� o� which is ta respand to impacts rasulti.ng �'rom the Facility, such payntents sha1.I be an oPfset agains� and a reduction o� the amounts du� the ei'�l pursuant to this paragraph. Accordzngly and by way of exampl�+ ff the Minnesota Legislature or oth�r governmental �ntity With authority to do so mandates that USPCI sha].I pay the City a tax, or other imposition, the amount at said tax oz imposition shaZl reduce the City Service Charg�, doZlar for dollar, due : pursuant ta this paragraph. e. Consultant Of�se�. Ta assist the City in avaZuating the App?ication of t�SPCI for necassary r�zoning and permit issuance, the Ci�y has, and wi11 hereaf�Er retain cutside consul�ants (e.g. Iegal, envizonmental, etc. ) to assist it. USPCI has agreed to reimburse the City for these outside consultant expenses, pursuant tv a letter agreement dat�d in August i989. pursuant to said letter agreement, USPCX has _ � .. , ' � . deposited funds with the G�ty ahd �ay here�fter d+aposit additionaZ funds with the City, t� r�imburs�e the Gity �or outside censu2tant expene�es. At the tim� o� City issuanae of �he Iast p�rmit required by USPCI to oonstruat the Factlity, the amaunt of the outside con$ultant expens�e incurred by tho City will be d�tex�mined and wiz2 be paid by USPCI to the City urt�.es� these funds advanced by 173pCI to the City exceed said amount, in which case s�id exGass shall be returned ta USPG2. The �ct�t2 amount expended or incurred by the City up to the time of 3�sudnce a� the �,ast pex�mit (tha "Consult�nt O�fa�at^' amount) will be �n offset agt�inrrt tha City Saxvic� Charga du� the C#.ty by USPC= pursuant to the precedi.nq pravisions of this paragraph, said Consult�nt Offset amount wiZl seduce the per ton City Servi�e � Charge at tihe rate af 25. cents per ton, until th� total Consultant offset amount has been eli�inated, Accordingly and by way of exampl� if the total consu?tant eharge amoun�k i� $50, 004, , the amount due by USPCZ to the City far fi�h� first 7.00, 00o tons deposited in �he Facility, determined in accordanc� wxth �he forego.�.ng subparagxaphs, shaZl be reduced by 25 cents per ton. f. The City agre�s that the funds ravide P d ursua � p nt to this paragraph wi17, not be used in any manner directly competitive to the business operations of UsPCI at the Facility. Nothing in this provi.sion shall be censtrued to limit the City af Rasemount's partzcipatian in recycZing ��forts. �?. Cit� a� Rosemount - USP�Z Communit Trust Fund. a. Establishment. USPCI in conjunction with the City - 8 - ` ' � � will estab�ish a CommunitY Tzvst Fur�d which �hall b� known as th� City oP Ro�emount - USPC2 Community Trust Fund. The trtis� fund w�21 be a�ninistered bx at board af trustse� ��d� up pf Piye (5) persans, thzee {3) of whom wi21 be des►ig»ated by the C�,ty and two (2) by USpCI, The trust w�11 be funded by USpC2 with a payment ef $4. 00 pez ton (sub�ect to ad�ustment as here3,naft�r prov�.ded) for e�ch ton of waste accepted ar�d d�c�posed of in th� Faci2lty during the ye�rs that tha Facility is accepting w�tste. Tonna e 5 computation for the ci�y sery3ce Charge shall be th� �am� $B fo� the Wa�te Generator Charga, p�yments ta th� true�t �hall be m$de monthly at such pZacs design�ted in writing by th� trustees. Payr��nfis for eaGh manth shall, be due by ths ].5th day of the foll.awing ma;�th. b• Use. The principal o� the trust may on].y be used at the determ.ina�ian of �he trustees as set out in the trust agreeme��. �Detai�ed actzvity of th� trust �und shall be as s�t ` forth on the trust document", a copy of which is attached hereto as Exhibit "'BN and incorporated herein by reference. C• Ad ustmer�t Bas�d on Waste Generator Char �. At the present time it is anticipated that the i.nit�.az per ton fe� charged to was�e generators �Nwast� Generato� chargey} wiZl be $75•�0 p�r ton, and the Community ��St �rid Charge payable to the Trust, is pzedicated on that anticipated Waste Generator Charge. If the Waste Generator Charge is increased or decreased by USPCI (other than as a result of an increase in amounts due governmental. entities after the Facility com2nences operation, such as permit fees, etc., which governmental].y required - 9 - jVi ��{, ` '�{, i� `�I 1 1 : :� �ti� ._�;1 � ;at:. �!'1 l..,d � L , ,. �v r 1 r. :i 1 . .' � • increai�es sha�.l r�ot impact the per ton chart�e due the City pursudnt to this paragraph) than t�:e Cammuni�y Trust Fund Charge ghall be ad�usted pro-rata. Accordingly and by way oP example i� thgre is a ten {l0} p�rcent increase ir► t�.he Wa�t�e Generatar Charg� tot�er than qovernm�ntal�y mandated} then the Ccmmunity Trust Fun� Charge shal2 lYkewise be increased by tan (10) parcent. Adjustment bas�d on this� subpa�agra�h (c} shall be applied to the pravi.ously existing Community �rust Fund Char�e, before the following ad�ustments or offsets. d. TM� Gity agrees th�t the funds provided pursuant to this paragx�ph will not be used in any manner dir�ct2y competi�ive to the business operatians cf USPCI at the �acility. Nothinq zn this provisican �ha�i �e construed to lim3t the City of Rosemaunt�� participation xn recycling efforts. 12 . Misaellaneous. � a. The City will be given access ta operating reeords of USPCI for the purposa oF verifyi:�g the accuracy of the amaunts reported to have b�en accepted at the Facility. b. USPCI �grees that any parmzt i�su�d by the City for the Project may incorporate th� provisians of this Commitment. � c. USPCZ agrees not to sell, assign, or trans�er its interest zn the Facility or Property �aithout the prior consent of the City. It is further understoad that the City �ay not assign r�ghts or obligations of the City here�:nder without prior written cons�nt of USPCI. - 10 - �... ��. �.. - . i�i _ y . � _ ���.,ry i .7 1' .i.. v .. . �. . .. i .. .._yvi i � �. - � e' , .� � � . . � 13. Summa . USPCI feelg it is 3n the best interest af the City as weil as �he regf.on and the �tate that �► Facility b� � canstructed consistent with �state of the axt� technical knawled�� to accommodate non-haaardous indus*rial waste. The prcpesed Facility is a p�tata of the art"' projact and will allow contztinment a£ said non-hazardous waste in a �tann�:r vastly superiar to tha :��nner in which said wastes are presently being dispased of in Dakota County. Pcrtfons of the Prdperty have been desiqnated by the Minnesots po2lution Control Ag�ncy as Nintrinsica3.ly sv.itab�.e"' for such a Facility. Thus, USPCI �grees to use th�ir best efforts to accomplish all necessary steps to al�.aw the canstructian and operation of the Facility fvr the good ot a13 persons concerned. This Develapment commitment is ex�cuted by USPCI, INc. this day of , 198�, LTSPCI, INC. By: Its: � 11 - l.I J. �. �. '�' '_,� �. � • L� 'v� :SrlS?� '�"' ���± �l�"..l� �tt� � �.r i�.i�1't1 1 1 �`.1tiV1 r � ,� . . � • `r� � � � . � 3ubjact to th� above proviaion�s, th� City will coop�rata with USPGS in the permit appiicatian proces� and prov�,de rea�ohable �seistanoe to USPCI in �eekinq ali necessary approvals. Accept�a ana agraaa ta thi� day og - � z4as. CITY OF ROSEMOUNT By. �to lx►n Hoke, Mayor By: St�e an s 3k, Adm n �tratar/ Cl�rk _ 12 - ., . � � ; � USPCS , INCORP4RATED ROSEMOUNT COMMUNITY TRUST ` This Trust Agreement made this day of ____, 1989, by and between USPCI , INCORPORATED, a carporation organized under the laws of the State of Delaware (hereinafter referred to as "Donor" ) , and . ___ � , , � an �"""+ ~ ^�here ni a�`ter+co ecti eTy referred to as�"Truste�j. M� 1 . Purpose of Trust. This trust i5 created and shall be operated ex�'ic..usiv�eiy-- or the benefit of the citizens of Rc3semount and the City of Rosemount, including, but not limited to, the following purposes: (a) To provide for the construction and maintenance of facilities for public recreation; ( b) To further community, industrial, governmental and physical planning in the City of Rosemount; (c) To improve living and working conditions within the City af Rosemount for the general welfare af the citizens of Rosemount. (d) To further public educational opportunities, whether by establi�hing programs or facilities devoted to educational purposes, or the furnishing of educationai I scholarships; and (e) To provide for the eharitable needs of the citizens of Rosemount and the City of Rosemount, within the meaning of Seetion 501 (c) (3) of the Internal Revenue Code of 1986, and amendments supplementary thereto. This trust is formed for and shall be operated exclusively for such purposes and in such a manner as shall make this trust tax exempt and the donations to it deductible from taxable income to the extent allowed by the provisions of the Internal Revenue Code of 1986 and such other applicable legislation and regulations as they now exist or as they may be amended. Na part of the trust fund shall inure to the benefit of any private shareholder or individual, and no part of the activities of this trust shall consist of carrying on propaganda, or otherwise attempting, to influence legislation, or of participating in, or intervening in ( including the publication or distribution of statements) , any political campaign on behalf of any candidate for public offi�ce . Aiotwithstanding any other provisions, this trust shall not conduct or carry on any activities not permitted to be conducted or carried on by any arganization which is tax exempt or by an organization to which donatiQns are deductible from taxabie income to the extent aTlowed by the provisions of the Internal Revenue Code and other applicable legislation and requlations as they now exist or may hereafter be amended. i .. . i .� � � • . . . 2. Name of Trust. The name of this trust shall be the USPCI, Incorporated Rosemount Cummunity Trust, and so far as practicable the Trustees shall conduct the activities of the trust in that name. 3. Trust Fund. The Trustees shall accept only donations made in cash from the Donor pursuant to the terms and provisions of that certain Permit dated issued by the City of Rosemount to Donor. A onations so received, toqether with the income derived therefrom, herein referred to as the trust fund, shall be held, managed, administered and paid out by the Trustees pursuant to the terms of this Trust Agreement. 4. Use of Trust Fund. The Trustees shall apply the trust f und, at suc times, in such manner, and in such amounts as they may determine, to the uses and purposes set forth in Paragraph 1 , or they may make contributions to other charitable organizations to be used within the City of Rosemount. For this purpose, the term "charitable organizations" shall mean a corporation, trust or community chest, fund or foundatian, created or organized in the United States or under the law of the United States or any state, organized and operated exclusively for charitable and educational purposes, no part of the net earnings of which inures to the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, and which does nat participate in, or intervene in (including the publisha.ng or distributing of statements) , any political campaign on behalf of any candidate for public office. Subject to the foregoing, during the first five (5) years after the establishment of the trust, the Trustees may annually distribute the sum of , Seventy-five Thousand DoTlars ($75,000) or the income of the trust, whichever is greater. Thereafter, the Trustees may annually distribute an amount not to exceed the income of the trust. In no event shall the Trustees be required to distribute sums in excess of the trust principal. Furthermore, in the event of a catastrophic occurence as the result of an act of god adversely affecting the welfare of the City of Rosemount or its citizens, the Trustees may, in their discretion, distribute the sum of One Million Dollars ($1 ,000,000) or one-third ( 1/3) of the trust fund, whichever is less, for the uses and purposes set forth in Paragraph 1 hereof. Any other provisions of this Trust Agreement notwithstanding, the Trustees shail distribute the trust income for each taxable year at such time and in such manner as not to become subject to the tax on undistributed income imposed by Section 4942 �of the Intern�l Revenue Code of 1986, or corresponding provisions of any subsequent federal tax laws. 5. Action of Trustees. The Trustees shall meet at least three (3) times during each calendar year at such times and places as they may from to time designate. Thirty (30) days written notice of all meetings of the Trustees shall be given to each Trustee, except where the meeting is an adjourned meeting and the date, time and place of the meeting are decided at the time of adjournment. Written notice shall contain the time and place of the meeting and shall be signed by at least two (2) Trustees. Three (3) Trustees must be present at a duly noticed meeting to constitute a quorum for the transaction of trust business. All -2- t' •� �f . . . . . . . � � . . . • . . . . actions a� �he Traste�� �hsS�, ba t�ken by r�rec�iuti r�o�l��d meatfr�g �,r b�r a w��,tt�r, r�corQ wiCho�� a m����,n � �u'��` unan.fmou� e�an��n� o� a11 Tr�aste�$. g wi�h th� froc� among them�el,v�s a� �earet�ry, w�:a�sh�Z.I�kesp���raaord af � a�tions �� the �S�ust,ees. ., �P�fnt but na� �,imited �o d,i�tx�;tbutio�Lof�fneam�,��ha1.��te�s, tn�ludingz �f�irrnatfve vo�e c� a m��arfty o� the Tru�t��,� tt�sn�ir��a�g�c� ex�apt for t;�e �ot:cawing �c�iortse f�} Distri.but�ons� of prin�ip�;, �rom th� �r�st �und $h ,� r��uire th� af�irm�fi�ve vote af two-thirds (�/3} afzthe '�ru��ae� th�n ,in OL'g�,C�t� exoep� ��r di�tr3but�Qn� of prira�ip�I m�de witihfn t�� �,irst �ive (5? years �fter esta�b�l,si�m�n�. o� the rru�tt and {b? �He a��►p��,Qn of 4p��`dt�.hc� ru1�s and r��.es artd �rocedures shaP�, b� in fur�heranae��f,��r�d�r�ot fr� eantrr�vent�on a�, the terms and p�c�visfons o� t��,� tru�t, sh�I.1 requ�xe �.h+� vot� c£ two�-��,ird� j2/3} of the Trustees tnen a.r� off.f��. � Arty inst�ument r$qufr�d to be �xe�uted by thi� tr��t �ha�1,l be v�Iid if �xecu�ec3 ir� th� nam� oE tl��a tru,�t by �hre� {3j c�£ th� Trust$es, A copY o� any resolu��fc�n or ae�ian t�ker, by the �'rust�es, cez�ti�ied �Y $�Y- th��� (3) o�' �M� Tru�t�e�� %��y be r��ied upon by �tny p�rson c�ealzng wi�h t:�ia �ru�t. Nt� sha].1 b� r�q�ixed to s�� to the apr�licatiQn oF any maney�r�an �secu�it,��� c�� ot}�er r� ��t r� ta inqu�,�,� �nto any �cti�n,yaec.is�o� 4��ai���a�ity a��the���e�s, a� _ Trugt�es. 6• Tru�tee� ' Pow�rs. Yri �.he administrc�tit�n of this tr�s�t , �r�d o� th� t at"�n�;"t�'� ��us�ees shall have alI gawers a�d a�st�r�ri�y tae�e$sary ar av�ilab,I� to Carry Qut rhe pu�pQse� o� tihi� trust �nd, withqut limi�ing th� ger.���2�ty of the f���g�1r,g, $hall h��/+' �h� t�oll�►wir�g pQwers �tYd at�tht��ityr �I1 s��b�eC� , howev9�'� tv the co;�ciftfon that no pawer ar �utho�ity sh�i.� be exerCised b� �h� Truste�s in any mann¢r or tc�r a��y pu�rpo�� which may no� be exe�ci�ed by an argr�r�i�a�ian which fs tax ex��pt or b� �n org�nization ta wh�.Ch 8o�t�t�.dns are deduc�ible f�^am �$:cab3e income to the extent a3.iowe�3 by the p���visions c�� t�e Interr�a�I Revenrae Cad� and o��er applfcai��.e Zegisl���.on and regul��ians es they now ex�st or m�y her�af��r b� �m�nded: C�) To re�eiv� ��,e fnca�;e, praf+�s, ��nrs dnd proceeda o� the tru�t £und; tb) To purchasa, subs�ribe for, retain, invegt �r�d reinvea� in �ecuri�ies or ather pr�perty whez�v�r �itua�ted, �nd wheth�r or no� prodra�tfve or r�f a wa��ir�g �ature, �:,d afthout any reqcairement �c�� diversificatio:� as to kir�d or amaun�. The words "se�u�itie8 oY o�he� proper�y" �s used irt tha,s �gre�m�nG �hal]. be deem�d to includ� real or persona�. prop�rty, cc�zpor�tie sl�����, �ammon or prefer�ed, ar any athez interest a.n �,n� co��aoxat#�sn, as�acie�tion, #.nvestment trust or #.�v�stnz�n�c company, bon��, rtotes, deben�e�ze� or vther avid�nc�s of indebtadness or own�rship� secured o� unsec��red, evr_n i • � though the same may not be legal investrnents tor a trustee under the applicabl laws; but securities and other� property sha11 not be deemed to include shares or , indPbtedness of the Donor unless the same is donated to this trust; (c) To sell for cash or on credit, convert, redeem, exchange for other securities or other praperty, or otherwise dispose of any securities or other property at any time held by them; (d) To alter, repair, improve, erect buidings upon, demolish, manage, partitian, mortgage, lease, exchange , grant options to lease or to buy, and sell or dispose of, at public or private sale, and upon such conditions and such terms as to cash and credit as they may deem advisable, real property; (e) To pay all administration expenses of this trust and any taxes imposed upon it, and to settle, compromise or submit to arbitration, any claims, mortgages, debts or damages, due or owinq to or from this trust, to commence or defend suits or legal proceedings, and to represnt this trust in all suits or legal proceedings; ( f) To exercise any- conversion privilege or subscription right available in connection with any securities or other property; to consent to the reorganization, consolidation, merger or readjustment of the finances of any corporation, company or association or to the sale, mortgage, pledge or lease of the property of any � corporation, company or association any of the securities of which may at any time be held by them and to do any act, including the exercise of options, the making of agreements or subscriptions, and the payment of expenses, assessments or subscriptions which may be deemed necessary or advi.sable, and to hold and retain any securities or other property which they may so acquire; tg) To vote personally, or by general or limited proxy, any shares of stock, and similarly to exercise personally, or by general or by limited power of attorney, any right appurtenant to any securities or other property; (h) To borrow money in such amounts and upon such terms and conditions as shall be deemed advisable or proper to carry out the purpose of this trust and to pledge any securities or other property for the repayment of any such laan; ( i) Ta hold part or all of the trust f und uninvested; -4- ' � ,'� � • (j ) To employ suitable accountants, agents, counsel and custodians and to pay their reasonable expenses and compensation; • (k) To register any securities held by them in their own name, or, to the extent permitted by law, in the name of a nomi.nee with or without the addition of words indicating that such securities are held in a fiduciary capacity and to hold any securities unregistered or in bearer form; ( 1) To make, execute and deliver a1I instruments necessary or proper �or the accomplishment of the purpose of this trust or of any of the foregoing powers, including deeds, bills of sale, transfers, leases, mortgages, security agreements, assignments, conveyances, contracts, purchase agreements, waivers, releases and settlements; (mj To exercise any and all powers granted to Trustees under Minnesota Statutes �501 .66, as it exists at the date of execution of this Trust Agreement; and � (n) Any other provisions of this agreement notwithstanding, the Trustees shall not engage in any act of self-dealing as defined in Section 4941 (d) of the Internal Revenue Code of 1986, or corresponding provisions of any subsequent federal tax laws; nor retain any excess business holdings as defined in Section 4943(c) of the Internal Revenue Code of 1986, or corresponding provisions of any subseguent federal tax laws; nor make , any investments in such manner as to incur tax liability under Section 4944 of the Internal Revenue Code of 1986, or corresponding provisions of any subsequent federal tax laws; nor make any taxable expenditures as defined in Section 4945(d) of the Internal Revenue Code of 1986, or correspanding provisions of any subseguent federal tax laws. 7. Trustees Designation and Succession. The trust shall be managed and administered by five (5) Trustees. Class I Trustees shall be nominated and appointed by the Mayor of the City of Rosemount, with the approval of the City Council of Rasemount at the first City Council meeting in January of each year. Class I shall consist of three (3) Trustees, selected for their knowledge of the needs of the citizens of Rosemount and the City of Rosemount, and shall always include one member from the business community of Rosemount. Class I Trustees shall serve for three ( 3) year terms and may not serve for more than two (2) consecutive three (3) year terms. Upon the initial appointment and designation of Class I Trustees, the Mayor shall designate and staqger the terms of the initial. Trustees such that in January of each year a Trustee must be designated and appointed by the Mayor -5- , , . ' � of the City of Rosemount, with the approval of the City Council ot Rosemount. Class II Trustees, consisting of two (2) Trustees, shall be designated and appointed by the Donor. C1ass Ii Trustees shal�l serve at the pleasure af the Donor. Any Trustee may resign his office at any time without leave of Court by written notice to all Trustees then in office. The resignation shall be effective as of the time set forth in said notice of resignation. Vacancies existing in the office of C1ass I Trustees, for whatever cause, shall be filled by appointment by the Mayor of the City of Rosemount, subject to approval by the City Council of Rosemount. Vacancies existing in the otfice of Class II Trustees, for whatever cause, sha11 be filled by the Donar. The Trustees may act notwithstanding the existence of any vacancies so long as there shall continue to be at least three (3) Trustees in office. The appointment of Trustees and successor Trustees shall be made by an instrument in writing. In the case of Class I Trustees, the writing shail contain a certified copy of the resolution of the City Council of Rosemount appointing the Trustee or successor Trustee. In the case of Class ZI Trustees, the writing shall be signed by an executive oFficer of the Donor and appoint the Trustee or successor Trustee. Trustees shall assume office immediately upon their appointment, unless the notice of appointment provides otherwise. Every successor Trustee shall have the same powers and duties as those conferred upon the Trustees named in this Trust Agreement. 8. Bond and Compensation. No Trustee shall be required to , furnish any bond or surety. Each Trustee shall serve without compensation for services, but all expenses of this trust or of any Trustee shall be paid by tne Trustees from the trust fund. 9. Accounting b�►�Trustees. The Trustees shall render accounts of t�f'ieir transactions to the Donor and the City of Rosemount at least annually, and the Donor and the City of Rosemount shall approve such accounts by an instrument in writing delivered to the Trustees. In the absence of the filing in writing with the Trustees by the Donor or the City of Rosemount of exceptions or objections to any such account within sixty {60) days, the Donor and the City of Rosemount shall be de�med to have approved such accaunt; and in such case or upon the written approval of the Donor and the City of Rosemount of any such account, the Trustees shall be released with respect to all matters and things set forth in such account as though such account had been settled by the decree of a court of competent jurisdiction. In the event either the Donor or the City of Rosemount do not �pprove such account, both the Donor and the City of Rosemount shall have such rights as are granted by law to the beneficiaries and trustees of the trust to require an accounting. No persons other than the Donor and the City of Rosemount may xequire an accounting or bring any action against the Trustees with respect to this trust, The Trustees may at any time initiate leqal action or proceedings £or the settlement of their accounts -6- • . � � and, except as otherwise required by law, the only necessary parties defendant to such action or proceeding shall be the Donor and the City of Rosemount. j 10. Liability of Trustees. No Trustee shall be answerable for loss in investments made in good faith. No Trustee shall be liable for the acts or omissions of any other Trustee, or of any accountant, agent, counsel or custodian selected with reasonable care. Each Trustee shall be fully protected in acting upon any instrument, certificate or paper, believed by him to be genuine and to be signed or presented by the proper person or pesons, and no Trustee shall be under any duty to make any investigation or inquiry as to any statement contained in any such writing but may accept the $ame as conclusive evidence of the truth and accuracy of the statements. 11 . Amendment. This Trust Agreement may be amended or modified from time to time by the unanimous consent of the Trustees, together with the approval of the City of Rosemount and the Danor, whenever necessary or advisable for the more convenient or efficient administration of this trust or to enable the Trustees to carry out the purpose of this trust more effectively, but no such amendment or modification shall alter the intention of the Donor that this trust be operated exclusively for the purposes set forth in Section 1 hereof, and in a manner which shall make this trust tax exempt and� the donations to it deductible from taxable income to the extent allowed by the provisions of the Internal Revenue Code of 1986 and other applicable legislation and regulations as they now exist or as they may be amended. Every amendment or modification of this agreement shall be made in writing, and shall be signed by the City of Rosemount, by two (2) officers of the Donor pursuant to authority of its Board of Directors, and by a11 Trustees, and shall be delivered to each of the Trustees then in office. 12. Irrevocability and Termination. This trust shall be irrevocable, but may be terminated at any time by unanimous action of the Trustees, with the approval of the City of Rosemount and the Donor. Upon any such termination, the Trustees shall promptly distribute the entire trust Fund to qualified recipients under the terms of this trust. 13. Situs. This agreement is executed and delivered in the State of Minnesota, the situs of the trust shall be in the State of Minnesota, and all terms and provisions of this trust shall be governed by the laws of the State of Minnesota. 14. Acceptance of Trust. The Trustees accept this trust, and hol�, manage and administer the trust fund in accordance with the terms oF this agreement. -7- _ • ! IN WITNESS WHEREOF, this agreement has been executed in Rosemount, Minnesota, by the Donor and each of the named Trustees. Attest: UNITED STATES POLLUTION CONTROL INCORPORATED By: _ BY� _ Its: Secretary - Its: President UNITED STATES POLLUTION CONTROL iNCORPORATED ROSEMOUNT COMMUNITY T.RUST FUND Trustee Trustee �.� __ Trustee -----_�-___�--- . Trustee �� Trustee STATE OF MINNESOTA) )ss. COUNTY OF DAKnTA ) On this day of , 19$9, before me, a Notary Public,wit'`Fiin and for sa� Count personally appeared and , the President an�Secretary,respect�.vely, o UNITED STATES POLLUTION CONTROL INCORPORP,TED, to me known to be the persans named in and who executed the foregoing instrument and acknowledged that they executed the same on behalf of the corporation. Notary Puk�i 'icl -8- . � # • STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) �On this day of , 1989, before me, a �lotary Public,wit�iin and for sai� County, personally appeared , Trustee for the USPCI , INCORPORATED ROSEMOUNT OMMUNITY TRUST FUND, to me known to be the person named in and who executecl the foreqoing instrument and acknowledged that he executed the same on behalf of the trust fund. Notary Public STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) On this day of , 1989, before me, a Notary Public, withi.n and for sai�d County, personally appeared , Trustee for the USPCI , INCORPORATED R�3( S�EMOUNT COMMUNITY TRUST FUND, to me known to be the person named in and who executed the faregoing instrument and acknowledged that he executed the same on behalf of the trust £und. Notary Pub ic � � STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) On this day of , 1989, before me, a I �lotary Public, wik�iin and for said County, personally appeared �_._...�_�._.�...�...� , Trustee for the USPCI , INCORPORATED ROSEMOUNT COMMUNITY TRUST FUND, to me known to be the person named in and who executed the foregoing instrument and acknowledged that he executed the same on behalf of the trust £und. Notary Public -9- + . _ s � , .� STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) On this day of , 1989, before me, a Notary Public, wit'—f�iin and for said County, personally appeared , Trustee for the USPCI , INCORPORATED ROSEMOUNT COMMUNITY TRUST FUND, to me known ta be the person namec3 in and who executed the foreqoing instrument and acknowledged that he ,executed the same on behalf of the trust fund. Notary Public STATE OF MINNESOTA) )ss. COUNTY OF DAKOTA ) - On this r� day of - �_ , 1989, before me, a Notary Public, within and for said County, personally appeared , Trustee for the USPCI , INCORPORATED ROSE'MOUNT COMMUNITY TRUST FUND, to me known to be the person named in and who executed the foregaing instrument and acknowledged that he executed the same on behalf of the trust fund. Notary'Public �"' 091989 -10-