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AGENDA
CITY COUNCIL REGULAR SESSION
December 9, 2025
7:00 PM
I. CALL TO ORDER AND ROLL CALL
II. CITIZEN COMMENTS
III. ADOPT AGENDA
III.A Adopt the Agenda for December 9, 2025
Summary Report
12-9-25 Agenda Council Meeting.docx
IV. CONSENT AGENDA
**All items listed with asterisks (**) are considered routine and non-controversial by the
Council and will be approved by one motion. There will be not separate discussion of these
items unless a Council member, City staff or citizen so requests, in which case the item will be
removed from the Consent Agenda and considered in its normal sequence on the agenda.
IV.A Approve the Consent Agenda Items Including:
1. Payment of Checks
2. Approval of Minutes
3. Resolution 2025-28: Accepting Kenyon Fire Relief Association Donations to the City of
Kenyon
4. City of Kenyon and Township 2026 Fire Contract
5. Jacobsen Law - Request for Increase to Fees for 2026 Criminal Prosecution
Contract
Summary Report
Resolution 2025-28 Accepting_Kenyon_Fire_Association_Donations.docx
township contract 2026.docx
JACOBSEN LAW.pdf
V. APPROVAL OF MINUTES and APPOINTMENTS
V.A
**APPROVAL OF MINUTES and APPOINTMENTS
1. City Council Meeting Minutes of November 12, 2025
2. City Council Special Meeting Minutes of December 2, 2025
Summary Report
11-12-25 Minutes.doc
12-2-25 Special Council Mtg minutes.doc
VI. PRESENTATIONS/PUBLIC HEARINGS
RECOGNITIONS/PROCLAMATIONS
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VII. ENGINEERING
VII.A 2025 Street & Utility Improvements
Summary Report
2025 Project_Pay Application No. 4.pdf
VIII. LEGAL
VIII.A Ordinance No. 113: Regulating the Discharge of Firearms, Bows, and Hunting Within
City Limits
1. Resolution 2025-25: Approving Publication of Ordinance No. 113 by Title and
Summary
Summary of Changes from the Original Ordinance – Hunting &
Weapon Discharge Ordinance
1. Bow Hunting on Private Property is Now Explicitly Allowed (with
Restrictions):
The amended ordinance allows limited bow hunting on private property within city
limits, provided:
The hunter has landowner permission;
All Minnesota DNR regulations and state safety laws are followed; and
All required safety setback distances from occupied buildings are met.
This was previously unclear or fully prohibited under the original ordinance.
2. All Hunting is Prohibited on City-Owned Property:
The amendment clearly prohibits all forms of hunting—firearms and archery—on
all City-owned property, including:
City parks
Trails
Public facilities
Public rights-of-way
This establishes a uniform, easily enforceable no-hunting policy for all public
land.
3. Firearms Discharge Remains Fully Prohibited in City Limits:
No change was made to the long-standing prohibition on firearm discharge anywhere
within the city.
4. State Law and DNR Restrictions are Now Incorporated by Reference:
The ordinance now directly incorporates Minnesota state law and DNR hunting
restrictions, including:
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Prohibitions near occupied buildings and livestock;
Road and right-of-way discharge bans;
Property permission requirements;
Public land restrictions;
Posted “No Hunting” and safety zones.
Summary Report
Ordinance_113_Regulating_the_Discharge_of_Firearms_Bows_and_Hunting_within_City_Limits.d
Resolution 2025-25
Approving_publication_of_Ordinance_No__113_by_title_and_summary.doc
VIII.B MN Paid Leave Policy
Summary Report
MINNESOTA_PAID_LEAVE_POLICY_-_State_Plan_template.DOCX
VIII.C Firebird LLC Contract
Summary Report
redlined Firebird Purchase and Development Agreement 12.5.2025 (II).pdf
DOCSOPEN-#1059954-v5-
Firebird_LLC_Purchase_and_Development_Agreement.DOC
VIII.D Power Sales Agreement
1. Resolution 2025-31 Authorizing the Execution of Bingham Lakes Facility
Wholesale Power Agreement
Summary Report
Bingham_Lakes_Member_Downstream_Power_Sales_Agreement.DOCX
Resolution 2025-31
Authorizing_execution_of_CMMPA_Agreement_re_Bingham_Lake.docx
IX. FINANCIAL
IX.A **FINANCIAL
Financial Reports and Checks for November
Summary Report
REVENUE.pdf
EXPENSES.pdf
CHECKS.pdf
X. OLD BUSINESS
X.A 2026 Budget and Levy
1. Resolution 2025-29: Adopting the 2026 Budget and Establishing the Tax Levy
for Payable 2026
Summary Report
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Resolution 2025-29 FinalLevyandBudgetAdoption.docx
X.B Approve Posting the Line Worker/Water Operator Position
Summary Report
KMU List.docx
LINE WORKER-WATER OPERATOR JAN 24 2008.docx
XI. NEW BUSINESS
XI.A CEDA 2025 Contract
The city council has annually contracted with "Community and Economic
Development Associates" (CEDA) to staff the EDA. Todd Kieffer is the CEDA
employee assigned to the city. The cost to have Todd continue to work two days a
week for the city would be $55,053.00. This contract would begin January 1, 2026 and
end December 31, 2026. The 2026 proposed contract is attached.
Summary Report
2026 CEDA Contract Kenyon.pdf
XI.B Resolution 2025-30: A Resolution Committing Capital Fund Balance
General accounting standard (GASB 54) requires all public entities to set year
end Capital fund balances. This action is required before the end of the
current year contingent on audited final numbers. Therefore, the resolution
included in the meeting packet should be adopted by the Council. The final
year-end capital fund amounts will not be known until the 2025 audit is
completed.
Summary Report
Resolution 2025-30 Committing Capital Fund Balances.docx
XI.C
2026 Tobacco License Renewals
1. Kenyon Market
2. River Country Co-Op (Circle K)
3. Kenyon Municipal Liquor Store
4. Dollar General
5. Kenyon Tobacco & Vape
This is the yearly renewal for the tobacco licenses in the city.
Summary Report
Tobacco Licenses.pdf
XI.D
Governance in Action Conference
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Summary Report
Governance in Action.pdf
XI.E Administrative Policy #39: Paid Time Off Cash-Out
Summary Report
ADMINPOLICY#39 Paid Time Off Cash-Out and Request Form.docx
12.31.25 Forcasted Time Off Balance and Liability.xlsx
XI.F Auditing Services RFP
1. BerganKDV
2. CliftonLarsonAllen
Summary Report
Bergan Proposal - FINAL.pdf
CLA Proposal 2025.pdf
CLA Dollar Cost Bid 2025 final.pdf
XI.G
Holiday Office Closings
1. City Office/Library Closed on Wednesday, December 24
2. City Office/Library Closed on Friday, December 26
Summary Report
XII. F.Y.I. - Department Updates
XII.A FYI for 12/9/25
Summary Report
FYI 12-9-25.pdf
XIII. COUNCIL AND STAFF GENERAL COMMENTS
XIV. ADJOURNMENT
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AGENDA ITEM NO. III.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Agenda
AGENDA SECTION: ADOPT AGENDA
SUBJECT: Adopt the Agenda for December 9, 2025
SUGGESTED ACTION: Motion Needed
ATTACHMENTS:
12-9-25 Agenda Council Meeting.docx
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AGENDA
CITY COUNCIL MEETING
December 9, 2025
Recite Pledge of Allegiance
7:00 I. CALL TO ORDER AND ROLL CALL
II. CITIZEN COMMENTS
III. ADOPT AGENDA
IV. CONSENT AGENDA
** All items listed with asterisks (**) are considered routine and non-controversial by the Council
and will be approved by one motion. There will be no separate discussion of these items unless a
Council member, City staff or citizen so requests, in which case the item will be removed from the
Consent Agenda and considered in its normal sequence on the agenda.
A. Resolution 2025-28: Accepting Kenyon Fire Relief Association Donations to the City of
Kenyon
B. City of Kenyon and Township 2026 Fire Contract
C. Jacobsen Law - Request for Increase to Fees for 2026 Criminal Prosecution Contract
V. **APPROVAL OF MINUTES and APPOINTMENTS
A. City Council Meeting Minutes of November 12, 2025
B. City Council Special Meeting Minutes of December 2, 2025
VI. PRESENTATIONS/PUBLIC HEARINGS RECOGNITIONS/PROCLAMATIONS
VII. ADMINISTRATOR UPDATE
VIII. ENGINEERING
A. 2025 Street and Utility Improvements
1. Fitzgerald Excavating and Trucking Change Order No. 1
2. Fitzgerald Excavating and Trucking Pay Application No. 4
IX. LEGAL
A. Ordinance No. 113: Regulating the Discharge of Firearms, Bows, and Hunting
Within City Limits
1. Resolution 2025-25: Approving Publication of Ordinance No. 113 by Title and
Summary
B. MN Paid Leave Policy
C. Firebird LLC Contract
D. Power Sales Agreement
1. Resolution 2025-31 Authorizing the Execution of Bingham Lakes Facility
Wholesale Power Agreement
X. FINANCIAL
**A. November 2025 Treasurer’s Report
**B. Payment of Claims
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XI. OLD BUSINESS
A. 2026 Budget and Levy
1. Resolution 2025-29: Adopting the 2026 Budget and Establishing the Tax Levy for
Payable 2026
B. Approve Posting the Line Worker/Water Operator Position
XII. NEW BUSINESS
A. CEDA 2025 Contract
B. Resolution 2025-30: A Resolution Committing Capital Fund Balance
C. 2026 Tobacco License Renewals
1. Kenyon Market
2. River Country Co-Op (Circle K)
3. Kenyon Municipal Liquor Store
4. Dollar General
5. Kenyon Tobacco and Vape
D. Governance in Action Conference
E. Administrative Policy #39: Paid Time Off Cash-Out
F. Auditing Services RFP
1. BerganKDV
2. CliftonLarsonAllen
G. Holiday Office Closings
1. City Office/Library Closed on Wednesday, December 24
2. City Office/Library Closed on Friday, December 26
XIII. OTHER BUSINESS
A. Schedule of Upcoming Meetings
1. KMU Meeting: Tuesday, December 16th @ 3:00 p.m.
2. EDA Meeting: Tuesday, December 16th @ 8 a.m.
3. City Council Meeting: Tuesday, January 13th @ 7 p.m.
XIV. COUNCIL AND STAFF GENERAL COMMENTS
XV. ADJOURNMENT
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AGENDA ITEM NO. IV.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Consent Agenda
AGENDA SECTION: CONSENT AGENDA
SUBJECT: Approve the Consent Agenda Items Including:
1. Payment of Checks
2. Approval of Minutes
3. Resolution 2025-28: Accepting Kenyon Fire Relief Association Donations
to the City of Kenyon
4. City of Kenyon and Township 2026 Fire Contract
5. Jacobsen Law - Request for Increase to Fees for 2026 Criminal
Prosecution Contract
SUGGESTED ACTION: Motion Needed
ATTACHMENTS:
Resolution 2025-28 Accepting_Kenyon_Fire_Association_Donations.docx
township contract 2026.docx
JACOBSEN LAW.pdf
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RESOLUTION NO. 2025-28
CITY OF KENYON
COUNTY OF GOODHUE
STATE OF MINNESOTA
RESOLUTION ACCEPTING KENYON FIRE RELIEF ASSOCIATION
DONATIONS TO THE CITY OF KENYON
WHEREAS, the City of Kenyon (“City”) has established the Kenyon Fire Department (“Fire
Department”) that is responsible for fire and life safety responses in the City; and
WHEREAS, the Kenyon Fire Relief Association recognizes the Fire Department’s commitment
to serving the City and would like to make a monetary donation to the Fire Department; and
WHEREAS, the Kenyon Fire Relief Association has offered to contribute the cash amounts set
forth below to the City:
Name of Donor Amount Use of Donation
Kenyon Fire Relief Association $2,500 Park & Rec – Depot Park Shelters
Kenyon Fire Relief Association $10,000 Kenyon Fire Department Truck Fund
TOTAL DONATIONS $12,500
WHEREAS, the City Council finds that it is appropriate to accept the donations offered.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF KENYON,
MINNESOTA, AS FOLLOWS:
1. The recitals stated above are hereby incorporated into this Resolution as if restated herein.
2. The Kenyon City Council accepts the donation for the Kenyon Fire Department and City
of Kenyon in the amount of $12,500 from the Kenyon Fire Relief Association to be used as listed above.
3. The donations contemplated in this Resolution are hereby accepted pursuant to Minnesota
Statutes, section 465.03.
4. City staff is hereby directed to issue receipts to the Kenyon Fire Relief Association
acknowledging the City’s receipt of the donor’s donations and to take all necessary actions contemplated
by this Resolution.
Adopted by the City Council of the City of Kenyon on December 9th, 2025.
Approved:
Donald Kirchmann, Mayor
Attest:
Scott Lehner, City Administrator
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CITY OF KENYON and TOWN
2026 FIRE CONTRACT
This contract is made and entered into this 1st day of April, 2026 (“Anniversary Date) between the City
of Kenyon, 709 2nd St., Goodhue County, Minnesota, a public Corporation (“City”), and Township, c/o
Clerk; in County, Minnesota, a public corporation (“Town”).
In consideration of the mutual promises and agreements hereinafter set forth the parties do hereby agree as
follows:
1. Fire Service. Town agrees to purchase from City, and City agrees to provide Town, the following fire
services: (Check all those that apply)
☒Structural Firefighting ☒ Emergency Medical Services
☒External Structural Firefighting ☒ Fire Scenes
☒ Interior Structural Firefighting ☒ Rescue Scenes
☒ Grass/Farmland/Forest Firefighting ☒ General Medicals
☒ General Firefighting Level of Emergency Medical Response
☒ Vehicles & Equipment ☒ First Responder
☒ Carbon Monoxide Calls □ Emergency Medical Technician
☒ Other Non-Structural Firefighting □ Paramedic
☒ Rescue □ Fire Code Enforcement
☒ Vehicle & Equipment Extrication ☒ Hazardous Materials Response
☒ General Search & Rescue Level of Hazardous Materials Response
☒ Confined Space Rescue ☒ First Responder, Awareness
☒ High Level Rescue ☒ First Responder, Operations
☒ Water Rescue □ HAZMAT Technician
☒ Diving/Recovery □ HAZMAT Specialist
☒ Disaster Response
The services indicated above are further explained, or limited, as follows:
a. Allocation of Resources. The parties understand the fire department officer in charge of the particular
scene shall exercise judgment to determine, in consideration of all the established policies, guidelines,
procedures, and practices, how best to allocate the available resources of the fire department under the
circumstances of a given situation. Failure to provide fire services because of poor weather conditions or
other conditions beyond the control of City shall not be deemed a breach of this contract.
b. No Guarantee. The parties understand and agree City will endeavor to provide the services indicated
above to the best of its ability given the circumstances, but City makes no guarantees that the services it actually
provides in a given situation will meet any particular criteria or standard.
2. Payment. Town agrees to pay City annually during the term of this contract the Payment Amount
determined annually according to the following formula:
The total cost of the fire department operational budget shall be divided between the City and the
Towns as follows:
For 2018 and subsequent years: City is responsible for 51%, Towns in aggregate for 49%.
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The following percentages relate specifically to Town in relation to the entire township territory to
which City provides fire services as the primary service provider (e.g., the Town’s Service Territory
and all or any portions of other cities, towns, or unorganized territories included in the City’s primary
service area).
Number of Wheeling Town sections covered by this agreement: 6
Total number of all Town sections covered by this agreement: 118.5
Total: 6 divided by 118.5 = % Town Cost Allocation
Sections covered Total Town Sections
Total Fire Department Annual Operational Budget for the upcoming year: $ 194,782.00
$ 95,443.19 x % =$
Operational Budget Town Cost Allocation Payment Amount
City shall provide Town a written claim for the Payment Amount by February 1, of each year, with
payment due in full by August 1, 2026.
a. Annual Meeting of Parties. Town and City shall hold at least one joint meeting annually during
term of this contract at least 60 days before February 1 to calculate the Payment Amount for the
upcoming year, discuss Town’s satisfaction with the service provided during the year, and to discuss
such other issues as either party deems relevant to this contract. The meeting shall be held separately
from any regular Town or City meeting and shall be attended by at least a quorum of each party’s
governing body.
3. Emergency Service Charge. City, in its sole discretion, may exercise its authority to impose and collect
an emergency service charge on those receiving emergency services, including fire services, within Town.
Town shall have no right to, or interest in, any service fees collected by City. Pursuant to Minn. Stat.
§366.011, §366.012, and City ordinance, the City agrees to send a written statement to the person(s) or
property owner(s) requesting or receiving service. Additionally, if the person or property owner receiving
fire services did not request services, but a fire or other situation exists which, at the discretion of the fire
department personnel in charge requires fire service, the person/property owner will be billed. Any billable
amount of the fire charge not covered by a person’s/property owner’s insurance remains a debt of the
person/property owner receiving the fire service. If the emergency service charge is not paid within 30 days
after a notice of delinquency is sent to the recipient of the services, the city council can authorize the
certification of the amount of the service charge to the county auditor, which will be collected along with
property taxes levied against the property. The service charge is subject to all penalties and interest
provided for the collection of property taxes.
4. Service Territory. City shall provide fire services as indicated in this contract to the area in Town
described below and/or as indicated on a map which is attached hereto and made part of this contract. The
identified area shall constitute the Town’s Service Territory for the purposes of this contract.
5. Term. This contract shall commence on the effective date indicated above and shall expire 1 year from that
date unless terminated earlier as provided herein.
6. Ownership. City owns the buildings and equipment associated with the Fire Department and the amounts
paid by Town do not give rise to any ownership interest in, or responsibility toward, those items.
7. City’s Responsibilities. In addition to any other obligations described herein, City shall:
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a. Authorize and direct the City fire department to provide the fire services described herein to Town’s
Service Territory;
b. Develop a detailed annual operational budget for the fire department for each year during the term of this
contract by the Anniversary Date and present it to Town along with sufficient information to explain the
items included in the budget figures. The annual operational budget may contain a capital fund amount
to be used for fire department tools and equipment upgrades and purchases. It shall not contain
amounts for purchase or upgrade of land or buildings. Town contributions to any capital purchase or
fund other than the stated shall be separate from this contract and shall be negotiated by the City with
each Town separately;
c. Upon Town’s request, provide Town access to financial and cost data related to the fire department for
five years prior to the current service year, including capital fund totals;
d. Disclose to Town any proposed action City or the fire department intends to take that can reasonably be
expected to affect the Insurance Services Office Fire Protection Grade in the Service Territory or City’s
ability to provide the fire services indicated above; and
e. Promptly disclose to Town any information City can reasonably anticipate will directly affect its
ability to perform its obligations under this contract.
8. Town’s Responsibilities. In addition to any other obligations described herein, Town shall:
a. Promptly pay City the Payment Amount as indicated above for the year of service, or a prorated
share of the Payment Amount for the length of service actually provided if the contract is terminated
early;
b. Present a budget and levy proposal to the town electors at each annual town meeting during the term
of this contract seeking authority to levy funds as needed to pay the “Payment Amount”; and
c. Promptly disclose to City any information Town can reasonably anticipate will directly affect its
ability to perform its obligations under this contract.
It is understood and agreed Town shall have no responsibility whatsoever toward the fighters or other emergency
personnel including any employment related issues such as training, supervision, performance reviews,
discipline, compensation, benefits, insurance coverages, compliance with any employment related federal, state,
and local laws and rules such as OSHA, ERISA, RLSA, FMLA, or any other employment related issues. It is
further agreed Town has no responsibility, beyond paying the agreed upon Payment Amount, for acquiring,
operating, maintaining, housing, or replacing equipment as needed to provide the fire services described herein.
9. Insurance Requirements. City shall maintain general liability insurance for its services and shall
include Town as an additional insured for the term of this contract and any extensions thereof. City shall
also maintain inland marine, automobile, and property insurance coverages. City shall provide Town proof
of such insurance coverages and the additional insured endorsement naming the Town annually by the
anniversary date of this contract.
10. Indemnification. City agrees to defend and indemnify Town against any claims brought or actions filed
against Town or any officer, employee, or volunteer of Town for injury to, death of, or damage to the property
of any third person or persons, arising from City’s performance under this contract for services. Under no
circumstances, however, shall City be required to pay on behalf of itself and Town, any amounts in excess of
the limits on liability established in Minnesota Statutes Chapter 466 applicable to any one party. The limits of
liability for Town and City may not be added together to determine the maximum amount of liability for City.
The intent of this subdivision is to impose on City a limited duty to defend and indemnify Town for claims
arising out of the performance of this contract subject to the limits of liability under Minnesota Statutes
Chapter 466. The purpose of creating this duty to defend and indemnify is to simplify the defense of claims by
eliminating conflicts between the parties and to permit liability claims against both parties from a single
occurrence to be defended by a single attorney.
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11. No Waiver. Nothing herein shall be construed to waive or limit any immunity from, or limitation on,
liability available to either party, whether set forth in Minnesota Statutes Chapter 466 or otherwise.
12. Modification. This writing contains the entire agreement between the parties and no alterations, variations,
modifications, or waivers of the provisions of this agreement are valid unless reduced to writing, signed by
both City and Town, and attached hereto.
13. Subcontracting & Assignment. City shall not subcontract or assign any portion of this contract to
another without prior written permission from Town. Services provided to Town pursuant to a mutual aid
agreement City has, or may enter into, with another entity does not constitute a subcontract or assignment
requiring prior approval of Town so long as City remains primarily responsible for providing fire services to
Town’s Service Territory.
14. Termination. This contract may be terminated at any time during its term by mutual agreement of the
parties. Either party may terminate this agreement by personally serving a 120-day written notice of
termination on the other party. This agreement shall terminate 120 days from the date of personal service of
the written termination notice unless the party serving the notice withdraws the notice in writing before it is
effective. If Town fails to pay for the service according to the schedule established herein, City may
terminate this agreement 60 days from the date of personal service of written termination notice. Notice to
City shall be served on the City administrator, or City clerk if there is no City administrator, and notice to
Town shall be served on the Town clerk.
15. Service Contract. This is a service contract. The parties do not intend to undertake or create, and nothing
herein shall be construed as creating a joint powers agreement, joint venture, or joint enterprise between the
parties.
16. Minnesota Law Governs. This contract shall be governed by and construed in accordance with the
internal laws of the State of Minnesota. All proceedings related to this contract shall be venued in the State
of Minnesota.
17. Severability. The provisions of this contract shall be deemed severable. If any part of this contract is
rendered void, invalid, or otherwise unenforceable, such rendering shall not affect the validity and
enforceability of the remainder of this contract.
IN WITNESS WHEREOF, the parties have executed this contract effective on the date indicated above.
Kenyon City Township
By its Mayor: By its Chairperson:
Signature Signature
Print Name Print Name
Date Date
City Administrator
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AGENDA ITEM NO. V.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: **Minutes and Appointments
AGENDA SECTION: APPROVAL OF MINUTES and APPOINTMENTS
SUBJECT:
**APPROVAL OF MINUTES and APPOINTMENTS
1. City Council Meeting Minutes of November 12, 2025
2. City Council Special Meeting Minutes of December 2, 2025
SUGGESTED ACTION: Approved as part of the Consent Agenda
ATTACHMENTS:
11-12-25 Minutes.doc
12-2-25 Special Council Mtg minutes.doc
18
Pursuant to due call and notice thereof, a City Council Meeting was duly held in the City Council chambers
at 7:00 p.m. on the 12th day of November 2025. The meeting was called to order by Mayor Donald
Kirchmann.
The following members were present: Mayor Donald Kirchmann, Council Members Lee Sjolander, Mary
Bailey, Elana Brunner, and Kim Helgeson
Via Zoom: Jessi Sturtz-Abdo
Also, present: City Administrator Scott Lehner, Administrative Assistant Holli Gudknecht, Attorney Scott
Riggs, John Lee, Doug Henke, Aaron Meyer, Angela Peterson, Bradley Johnson, Logan Meyers, Adrian
Mogren, Justin Mogren, Terry Campbell, Jim Gould, Tyler Eggert, Police Officer Armani Tucker, Police
Chief Jeff Sjoblom, Lynn Miller, Ricky Koester, Deanna Walker
The meeting opened with the Pledge of Allegiance.
CITIZEN COMMENT
Jim Gould, who lives at 103 Gates Avenue, requested that the city not ban bow hunting within city limits,
especially on private property.
ADOPT AGENDA
Motion by Bailey seconded by Lee to approve the agenda. Motion carried 4-0-0.
CONSENT AGENDA
Motion by Helgeson second by Bailey to approve the Consent Agenda, which includes:
City to Remain with BCBS Health Insurance for 2026
MN Family Leave Act - the city and the Employee will Each Pay Half of the Premium
Financials and Payment of check numbers, 77624 through 77665; 7027E through 7059E
Council Minutes of October 14, 2025
Motion carried 5-0-0.
PRESENTATIONS/PUBLIC HEARINGS/RECOGNITIONS/PROLAMATIONS
Kenyon/Wanamingo Messenger Bid to Publish Legal Notices for 2026-Terry Campbell
Terry Campbell of the Kenyon/Wanamingo Messenger stated that he would like to be considered for
appointment as the legal newspaper of the City of Kenyon starting in 2026. This designation is one of
the first items the Council approves in 2026.
ADMINISTRATOR UPDATE
Part-Time Hire
Administrator Lehner updated the council on the hire of a part-time administrative assistant. He worked with
Abdo on the details of the job description and the personnel committee reviewed it. The job posting is open
until November 17.
Motion by Kirchmann seconded by Helgeson to continue with the hiring process of the part-time
administrative assistant.
AYES: Councilmember Kirchmann, Councilmember Helgeson, Councilmember Brunner, Councilmember
Bailey — NAYS: Councilmember Sjolander — ABSTAIN: None. Motion carried 4-1-0.
ENGINEERING
6th Street Reconstruction – LRIP Funding Application
Administrator Lehner stated that the reconstruction of 6th Street project has been identified in the
infrastructure management plan as a project in 2028. The financial feasibility of this project is highly
dependent on outside funding. In 2023, a grant was applied for through the state's local road
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improvement program (LRIP). Although funding was not awarded in 2023, the project scored well. The
plan is to resubmit the application for the 2025 solicitation.
Resolution 2025-26: Authorizing the Pursuit of 2025 Local Road Improvement Program Funding for the
6th Street Reconstruction Project
Motion by Sjolander seconded by Helgeson to adopt Resolution 2025-26. Motion carried 5-0-0.
2025 Street and Utility Improvements
Fitzgerald Excavating has been paving on both 5th and 8th Streets and patching pavement within 2nd
Street and Forest Street. Pay application No. 3 includes work from October 4 to October 31 in the
amount of $494,533.51.
2025 Street and Utility Improvements – Fitzgerald Excavating & Trucking -Pay Application No. 3
Motion by Bailey seconded by Helgeson to approve pay application #3 to Fitzgerald Excavating in the
amount of $494,533.51. Motion carried 5-0-0.
LEGAL
FINANCIAL
OLD BUSINESS
2026 Final Budget
Jessi Sturtz from Abdo reviewed the final numbers for the 2026 budget. The final levy budget is down to
9.18%.
NEW BUSINESS
Ordinance No. 113: Prohibiting the Discharge of Firearms, Bows, and Other Projectile Devices
Within City Limits
Administrator Lehner stated that the city currently has no ordinance regulating the discharge of firearms
or bows within city limits. Every year this question comes up at hunting season. We currently adhere to
the DNR regulations. To enhance public safety and align with practices in surrounding Minnesota cities,
staff are presenting a draft ordinance that prohibits the discharge of firearms, bows, and other projectile
devices within the City of Kenyon. The ordinance includes limited exceptions for law enforcement,
defense of persons or property, approved ranges, ceremonial events, and authorized wildlife control
activities.
Doug Henke stated that firearms should be allowed for the colorguard and military funerals.
Mayor Kirchmann and Councilmember Sjolander replied that this is allowed per section 5 of the
ordinance.
Administrator Lehner clarified why this ordinance was drafted and the reasoning as to why bow hunting
was included in the ordinance.
Adrian Mogren would like the city to go along with what the DNR allows. Bow hunting is safer than
firearm hunting. He felt it was unreasonable to outlaw bow hunting in city limits.
Councilmember Bailey read a script concerning her opposition to restricting the bow hunting aspect of
the ordinance.
The council agreed that bow hunting should be allowed on private property, but not on city property.
Tabled for further clarification of the ordinance.
2026 Proposed Agreement for Continuation of our City-County Joint-Powers “Agreement for
State Building Code Administration”
Administrator Lehner stated that Goodhue County requires the City of Kenyon to approve a yearly
agreement to conduct residential and commercial building inspections. The County has done an
excellent job conducting inspections for the city. The term of the contract would be for one year starting
20
January 1, 2026.
Motion by Kirchmann seconded by Bailey to approve the 2026 agreement with Goodhue County for
State Building Code Administration. Motion carried 5-0-0.
Resolution 2025-27: Adopting Assessment for Grounds Maintenance/Delinquent Utility Bills
Administrator Lehner stated that this resolution would authorize grounds maintenance/delinquent utility
bill amounts to be certified on property taxes.
Motion by Helgeson second by Brunner to adopt Resolution 2025-27 adopting assessments for grounds
maintenance/delinquent utility bills. Motion carried 5-0-0.
Power Sales Agreement Between CMPAS and City of Kenyon
Administrator Lehner stated that the KMU Commission recommended approving the purchase of half a
megawatt of wind energy and up to another half a megawatt if it becomes available.
Motion by Sjolander seconded by Bailey to approve the power sales agreement between CMPAS and the
City of Kenyon subject to review and finalization by city staff and the city attorney.
Motion carried 5-0-0.
Approve posting the Line Worker/Water Operator Position
Administrator Lehner stated that the KMU Commission recommended approval to post the Line
Worker/Water Operator position to replace Austin Fitch who resigned in May. Per Mayor Kirchmann’s
request, John Lee clarified the need to rehire an additional line worker. Administrator Lehner stated that
this was not a new topic. At the last commission meeting, the commission voted to rehire this position,
but Operations Superintendent Eggert was asked to define “busy” in writing. This documentation has not
been received yet.
Motion by Sjolander seconded by Kirchmann to table posting the line worker/water operator position
until the needed documentation is received. Motion carried 5-0-0.
Handicap Parking Space-Main Street Dental
Administrator Lehner stated that Main Street Dental requested approval for the installation of
handicapped parking signage and pavement markings for one parking space in front of their business.
The business will pay for all installation costs.
Motion by Sjolander seconded by Kirchmann to allow a handicap parking space to be installed in front
of Main Street Dental at their cost. Motion carried 5-0-0.
Schedule for Upcoming Meetings
EDA Special Meeting: Thursday, November 13th @ 8:30 a.m.
KMU Meeting: Tuesday, November 18th @ 3:00 p.m.
EDA Meeting: Tuesday, November 28th @ 8 a.m.
Township Fire Contract Meeting: Tuesday, December 2nd @ 6:00 p.m.
Truth in Taxation Public Meeting: Tuesday, December 2nd @ 6:30 p.m.
City Council Meeting: Tuesday, December 9 @ 7 p.m.
COUNCIL AND STAFF GENERAL COMMENTS
Council Member Sjoblom thanked the fire department for their work at the recent barn fire and the police
department for working shorthanded. He also thanked all other staff for everything they do.
Motion by Brunner seconded by Helgeson to adjourn the meeting at 8:44 p.m. Motion carried 5-0-0.
21
Holli Gudknecht, Deputy City Clerk Donald Kirchmann, Mayor
22
Pursuant to due call and notice thereof, a special City Council meeting was duly held in the City
Council chambers at 6:00 p.m. on the 2nd day of December 2025. The following members were
present: Council members, Lee Sjolander, Kim Helgeson
Absent: Mayor Donald Kirchmann, Mary Bailey, Elana Brunner
Also present: City Administrator Scott Lehner, Administrative Assistant Holli Gudknecht, Fire
Chief Wayne Ehrich
Citizens: None
Township representatives: Matt Voxland, Sean Bauer, Jim Donkers, and Max Mattson
NO QUORUM
The special meeting began at 6:00 pm.
2026 Fire Contract Meeting with Townships
The purpose of the meeting was to review the proposed 2026 contracts for fire protection with the
six townships in the Kenyon Fire Department service area. The contracts were based on a
breakdown of 51% city and 49% township of the operating budget. Each township’s portion of the
budget was split based on the number of sections covered by the Fire Department.
Fire Chief Ehrich summarized what made up the 2026 budget and answered questions from the
Township board members. The 2026 budget increased from 2025 by $1,658.17. The increase was
mainly due to replacing pagers/radios and increased property insurance. The fire department took
possession of the new 520 Tender truck last week. In 2025, Fire Relief donated $27,000 to the truck
fund from gambling proceeds. The 1988 C70 Chevrolet Tanker will be sold on auction next week.
Public Budget and Levy discussion
The Truth in Taxation meeting was designed for citizens who had questions about the proposed
budget and levy for 2026. The maximum levy approved by the Council in September was 9.93%. In
November, Jessi Sturtz from Abdo reported that the final levy budget was down to 9.18%.
No citizen comments.
The meeting was closed at 6:36 pm.
Holli Gudknecht, Administrative Assistant Mary Bailey, Acting Mayor
23
AGENDA ITEM NO.
VII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Engineering
ITEM TYPE: Engineering
AGENDA SECTION: ENGINEERING
SUBJECT: 2025 Street & Utility Improvements
SUGGESTED ACTION:
Work for this year is now complete. Fitzgerald has not yet provided a
planned start date for the remainder of work on the project. This
information will be shared once available.
Pay Estimate #4 and Change Order #1 are not yet available, since we
are still working with the contractor to finalize those documents.
These will be uploaded to the packet prior to the meeting. A brief
summary of each is provided below:
Change Order #1 will contain contract revisions that align with the
contractors executed work plan through the end of the year. Our
primary goal with the project schedule was for the contractor to
complete a substantial (yet undefined) amount of work during 2025,
while making sure that all areas opened up were paved and finished
by the end of the 2025 construction season. In our opinion, Fitzgerald
achieved this goal. The change order will adjust 2025 completion
dates so liquidated damages would no longer apply to the 2025 work.
As discussed previously, we changed some construction methods for
the installation of watermain within 2nd Street, given some
unforeseen shallow bedrock. This change order will redefine the
payment for this change in work. No cost increase is expected.
Pay Estimate #4
This pay estimate covers work through the end of the construction
season. Since last month, work has included paving and turf
24
restoration. The pay estimate will also include an estimated amount
due for 2nd Street watermain changes (Future Change Order #1).
Requested Action: Motion Approving Pay Application #4. No
Action requested for Change Order #1.
ATTACHMENTS:
2025 Project_Pay Application No. 4.pdf
25
Contractor's Application for Payment
Owner: CITY OF KENYON Owner's Project No.: N/A
Engineer: BOLTON & MENK Engineer's Project No.: 24X.134934.000
Contractor: FITZGERALD EXCAVATING & TRUCKING INC Agency's Project No.: N/A
Project: 2025 STREET & UTILITY IMPROVEMENTS
Contract: N/A
Application No.: 4 Application Date: 12/9/2025
Application Period: From 11/1/2025 to 11/28/2025
1. Original Contract Price $ 2,294,629.25
2. Net change by Change Orders $ -
3. Current Contract Price (Line 1 + Line 2) $ 2,294,629.25
4. Total Work completed and materials stored to date
(Sum of Column G Lump Sum Total and Column J Unit Price Total) $ 1,098,616.97
5. Retainage
a. 5% X $ 1,098,616.97 Work Completed $ 54,930.85
b. X $ - Stored Materials $ -
c. Total Retainage (Line 5.a + Line 5.b) $ 54,930.85
6. Amount eligible to date (Line 4 - Line 5.c) $ 1,043,686.12
7. Less previous payments $ 822,884.75
8. Amount due this application $ 220,801.37
Contractor's Certification
The undersigned Contractor certifies, to the best of its knowledge, the following:
(1) All previous progress payments received from Owner on account of Work done under the Contract have been applied on account
to discharge Contractor's legitimate obligations incurred in connection with the Work covered by prior Applications for Payment;
(2) Title to all Work, materials and equipment incorporated in said Work, or otherwise listed in or covered by this Application for
Payment, will pass to Owner at time of payment free and clear of all liens, security interests, and encumbrances (except such as are
covered by a bond acceptable to Owner indemnifying Owner against any such liens, security interest, or encumbrances); and
(3) All the Work covered by this Application for Payment is in accordance with the Contract Documents and is not defective.
Contractor: Fitzgerald Excavating and Trucking, LLC
Signature: Date:
Name: Nick Dahle Title: Project Manager
Recommended by Engineer Approved by Owner
By: By:
Name: Derek Olinger, P.E. Name: Scott Lehner
Title: City Engineer Title: City Administrator
Date: Date:
EJCDC C-620 Contractor's Application for Payment
(c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved. 26
Progress Estimate - Unit Price Work Contractor's Application for Payment
Owner: CITY OF KENYON Owner's Project No.:
Engineer: BOLTON & MENK Engineer's Project No.: 24X.134934.000
Contractor: FITZGERALD EXCAVATING & TRUCKING INC Contractor's Project No.:
Project: 2025 STREET & UTILITY IMPROVEMENTS Agency's Project No.:
Contract:
Application No.: 4 Application Period: From 11/01/25 to 11/28/25 Application Date: 12/09/25
A B C D E F F1 F2 G H I J K L
Contract Information Previous Estimate Work Completed
Work Completed % of
Estimated Value of Work and Materials Value of
Value of Bid Item Quantity Completed to Date Materials Currently Stored Stored to Date Item Balance to Finish (F
Bid Item Unit Price (C X E) Quantity Previous Value Previous Incorporated in (E X G) (not in G) (H + I) (J / F) - J)
No. Description Item Quantity Units ($) ($) Estimate Estimate the Work ($) ($) ($) (%) ($)
Original Contract
1 MOBILIZATION 1.00 LS 37,500.00 37,500.00 0.32 12,000.00 0.50 18,750.00 18,750.00 50% 18,750.00
2 CLEARING 6.00 EACH 1,000.00 6,000.00 5.00 5,000.00 5.00 5,000.00 5,000.00 83% 1,000.00
3 GRUBBING 6.00 EACH 500.00 3,000.00 6.00 3,000.00 6.00 3,000.00 3,000.00 100% -
4 SALVAGE SIGN 5.00 EACH 50.00 250.00 2.00 100.00 2.00 100.00 100.00 40% 150.00
5 SAWING CONCRETE PAVEMENT (FULL DEPTH) 95.00 LF 7.00 665.00 88.00 616.00 88.00 616.00 616.00 93% 49.00
6 SAWING BITUMINOUS PAVEMENT (FULL DEPTH) 402.00 LF 5.00 2,010.00 198.00 990.00 198.00 990.00 990.00 49% 1,020.00
7 REMOVE CURB AND GUTTER 1,305.00 LF 5.00 6,525.00 1,164.00 5,820.00 1,164.00 5,820.00 5,820.00 89% 705.00
8 REMOVE CONCRETE DRIVEWAY PAVEMENT 128.00 SY 10.00 1,280.00 84.50 845.00 84.50 845.00 845.00 66% 435.00
9 REMOVE BITUMINOUS DRIVEWAY PAVEMENT 230.00 SY 7.00 1,610.00 - - - - - 1,610.00
10 REMOVE BITUMINOUS PAVEMENT 4,907.00 SY 4.00 19,628.00 2,059.60 8,238.40 2,059.60 8,238.40 8,238.40 42% 11,389.60
11 REMOVE CONCRETE WALK 480.00 SF 2.00 960.00 237.10 474.20 237.10 474.20 474.20 49% 485.80
12 EXCAVATION - COMMON (P) 2,857.00 CY 13.00 37,141.00 1,190.00 15,470.00 1,190.00 15,470.00 15,470.00 42% 21,671.00
13 EXCAVATION - SUBGRADE (P) 1,394.00 CY 13.00 18,122.00 682.00 8,866.00 682.00 8,866.00 8,866.00 49% 9,256.00
14 EXPLORATORY EXCAVATION 8.00 HR 300.00 2,400.00 4.00 1,200.00 4.00 1,200.00 1,200.00 50% 1,200.00
15 SELECT GRANULAR EMBANKMENT (CV) (P) 1,394.00 CY 25.00 34,850.00 682.00 17,050.00 682.00 17,050.00 17,050.00 49% 17,800.00
16 GEOTEXTILE FABRIC TYPE 9 5,574.00 SY 2.50 13,935.00 1,984.40 4,961.00 1,984.40 4,961.00 4,961.00 36% 8,974.00
17 AGGREGATE SURFACING CLASS 2 36.00 CY 30.00 1,080.00 - - - - - 1,080.00
18 AGGREGATE BASE (CV) CLASS 5 (P) 1,167.00 CY 25.00 29,175.00 455.00 11,375.00 455.00 11,375.00 11,375.00 39% 17,800.00
19 SURFACE RESTORATION (2ND ST) 1.00 LS 47,500.00 47,500.00 - - 1.00 47,500.00 47,500.00 100% -
20 PAVEMENT MARKINGS (2ND ST) 1.00 LS 4,860.00 4,860.00 - - - - - 4,860.00
21 SURFACE RESTORATION (SANITARY REPAIR) 3.00 EACH 4,500.00 13,500.00 - - 3.00 13,500.00 13,500.00 100% -
22 GRAVEL RESTORATION (SANITARY REPAIR) 1.00 EACH 1,000.00 1,000.00 1.00 1,000.00 1.00 1,000.00 1,000.00 100% -
23 TYPE SP 9.5 WEARING COURSE MIXTURE (3;C) 1.5" THICK 7,760.00 SY 9.00 69,840.00 - - - - - 69,840.00
24 TYPE SP 12.5 WEARING COURSE MIXTURE (3;C) 2.0" THICK 2,807.00 SY 11.75 32,982.25 - - - - - 32,982.25
25 TYPE SP 12.5 WEARING COURSE MIXTURE (3;C) 2.5" THICK 2,145.00 SY 14.50 31,102.50 - - 2,164.00 31,378.00 31,378.00 101% (275.50)
26 BITUMINOUS PATCH SPECIAL (DRIVEWAY) 70.00 SY 36.00 2,520.00 - - - - - 2,520.00
27 6" PERF PVC PIPE DRAIN 2,281.00 LF 15.25 34,785.25 1,079.30 16,459.33 1,079.30 16,459.33 16,459.33 47% 18,325.92
28 SUMP PUMP SERVICE 13.00 EACH 1,000.00 13,000.00 11.00 11,000.00 10.00 10,000.00 10,000.00 77% 3,000.00
29 DRAIN OUTLET DESIGN SPECIAL (END SECTION) 1.00 EACH 400.00 400.00 1.00 400.00 1.00 400.00 400.00 100% -
30 6" PVC PIPE DRAIN CLEANOUT 7.00 EACH 300.00 2,100.00 6.00 1,800.00 6.00 1,800.00 1,800.00 86% 300.00
31 CONCRETE STEP 170.00 SF 30.00 5,100.00 77.90 2,337.00 77.90 2,337.00 2,337.00 46% 2,763.00
32 4" CONCRETE WALK 355.00 SF 7.50 2,662.50 260.60 1,954.50 260.60 1,954.50 1,954.50 73% 708.00
33 6" CONCRETE WALK 70.00 SF 12.25 857.50 - - - - - 857.50
34 CONCRETE CURB AND GUTTER DESIGN B618 1,060.00 LF 25.80 27,348.00 1,102.00 28,431.60 1,102.00 28,431.60 28,431.60 104% (1,083.60)
35 CONCRETE CURB AND GUTTER DESIGN D DRIVEOVER 1,910.00 LF 23.75 45,362.50 - - - - - 45,362.50
36 6" CONCRETE DRIVEWAY PAVEMENT 175.00 SY 88.25 15,443.75 102.50 9,045.63 102.50 9,045.63 9,045.63 59% 6,398.12
37 7" CONCRETE DRIVEWAY PAVEMENT 420.00 SY 92.50 38,850.00 - - - - - 38,850.00
38 7" CONCRETE VALLEY GUTTER 71.00 SY 95.00 6,745.00 57.00 5,415.00 57.00 5,415.00 5,415.00 80% 1,330.00
39 TRUNCATED DOMES 10.00 SF 55.00 550.00 - - - - - 550.00
40 TRAFFIC CONTROL 1.00 LS 14,000.00 14,000.00 0.32 4,480.00 0.50 7,000.00 7,000.00 50% 7,000.00
41 INSTALL SIGN 6.00 EACH 350.00 2,100.00 - - 3.00 1,050.00 1,050.00 50% 1,050.00
42 STABILIZED CONSTRUCTION EXIT 2.00 LS 500.00 1,000.00 1.00 500.00 1.00 500.00 500.00 50% 500.00
43 EROSION CONTROL SUPERVISOR 1.00 LS 500.00 500.00 0.38 187.50 0.38 187.50 187.50 38% 312.50
44 STORM DRAIN INLET PROTECTION 30.00 EACH 200.00 6,000.00 3.00 600.00 3.00 600.00 600.00 10% 5,400.00
45 SILT FENCE; TYPE MS 235.00 LF 2.50 587.50 90.00 225.00 90.00 225.00 225.00 38% 362.50
46 SEDIMENT CONTROL LOG TYPE WOOD FIBER 240.00 LF 5.00 1,200.00 240.00 1,200.00 240.00 1,200.00 1,200.00 100% -
47 SEDIMENT CONTROL LOG TYPE ROCK 120.00 LF 5.00 600.00 - - - - - 600.00
48 COMPOST GRADE 2 140.00 CY 30.00 4,200.00 - - - - - 4,200.00
49 FERTILIZER TYPE 3 105.00 LB 2.50 262.50 - - - - - 262.50
50 SODDING 2,515.00 SY 7.00 17,605.00 - - 774.00 5,418.00 5,418.00 31% 12,187.00
EJCDC C-620 Contractor's Application for Payment
Unit Price 1 of 5
(c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved. 27
Progress Estimate - Unit Price Work Contractor's Application for Payment
Owner: CITY OF KENYON Owner's Project No.:
Engineer: BOLTON & MENK Engineer's Project No.: 24X.134934.000
Contractor: FITZGERALD EXCAVATING & TRUCKING INC Contractor's Project No.:
Project: 2025 STREET & UTILITY IMPROVEMENTS Agency's Project No.:
Contract:
Application No.: 4 Application Period: From 11/01/25 to 11/28/25 Application Date: 12/09/25
A B C D E F F1 F2 G H I J K L
Contract Information Previous Estimate Work Completed
Work Completed % of
Estimated Value of Work and Materials Value of
Value of Bid Item Quantity Completed to Date Materials Currently Stored Stored to Date Item Balance to Finish (F
Bid Item Unit Price (C X E) Quantity Previous Value Previous Incorporated in (E X G) (not in G) (H + I) (J / F) - J)
No. Description Item Quantity Units ($) ($) Estimate Estimate the Work ($) ($) ($) (%) ($)
51 RAPID STABILIZATION METHOD 2 1,258.00 SY 3.00 3,774.00 - - - - - 3,774.00
52 TOPSOIL PREPARATION 2,515.00 SY 2.50 6,287.50 - - 774.00 1,935.00 1,935.00 31% 4,352.50
53 TURF MAINTENANCE 60.00 DAY 75.00 4,500.00 - - 7.00 525.00 525.00 12% 3,975.00
54 TURF RESTORATION (2ND ST) 1.00 LS 2,500.00 2,500.00 - - - - - 2,500.00
55 CONSTRUCTION ALLOWANCE 74,000.00 UNIT 1.00 74,000.00 - - - - - 74,000.00
56 REMOVE MANHOLE (SANITARY) 2.00 EACH 400.00 800.00 2.00 800.00 2.00 800.00 800.00 100% -
57 REMOVE SEWER PIPE (SANITARY) 340.00 LF 5.00 1,700.00 339.00 1,695.00 339.00 1,695.00 1,695.00 100% 5.00
58 CONNECT TO EXISTING SANITARY SEWER 1.00 EACH 1,500.00 1,500.00 1.00 1,500.00 1.00 1,500.00 1,500.00 100% -
59 8"X6" PVC WYE 12.00 EACH 375.00 4,500.00 16.00 6,000.00 16.00 6,000.00 6,000.00 133% (1,500.00)
60 8" PVC PIPE SEWER 424.00 LF 65.00 27,560.00 391.00 25,415.00 411.00 26,715.00 26,715.00 97% 845.00
61 6" PVC SANITARY SERVICE PIPE 400.00 LF 40.00 16,000.00 276.00 11,040.00 276.00 11,040.00 11,040.00 69% 4,960.00
62 2" PE PRESSURE SEWER SERVICE 105.00 LF 40.00 4,200.00 108.00 4,320.00 108.00 4,320.00 4,320.00 103% (120.00)
63 LINING SEWER PIPE 8" 3,648.00 LF 41.50 151,392.00 - - - - - 151,392.00
64 CASTING ASSEMBLY (SANITARY) 2.00 EACH 1,300.00 2,600.00 - - - - - 2,600.00
65 FINAL CASTING ADJUSTMENT (DONUT CUT) 5.00 EACH 1,700.00 8,500.00 - - - - - 8,500.00
66 CONSTRUCT DRAINAGE STRUCTURE DESIGN 4007 14.70 LF 500.00 7,350.00 14.70 7,350.00 14.70 7,350.00 7,350.00 100% -
67 SANITARY LATERAL REINSTATEMENT 56.00 EACH 55.00 3,080.00 - - - - - 3,080.00
68 TRIMMING PROTRUDING TAPS 7.00 EACH 1,139.00 7,973.00 - - - - - 7,973.00
69 SANITARY LATERAL GROUTING 56.00 EACH 450.00 25,200.00 - - - - - 25,200.00
70 LATERAL CLEANING 28.00 EACH 500.00 14,000.00 - - - - - 14,000.00
71 ROOT CUTTING 1,200.00 LF 3.00 3,600.00 - - - - - 3,600.00
72 SANITARY MANHOLE REHABILITATION (SPRAY-ON) 9.00 EACH 5,320.00 47,880.00 - - - - - 47,880.00
73 SANITARY SEWER BYPASSING 1.00 LS 2,815.00 2,815.00 - - - - - 2,815.00
74 POINT REPAIR - SANITARY SEWER PIPE 4.00 EACH 4,500.00 18,000.00 4.00 18,000.00 4.00 18,000.00 18,000.00 100% -
75 INTERNAL POINT REPAIR (SHORT LINER) 3.00 EACH 2,000.00 6,000.00 - - - - - 6,000.00
76 INTERNAL CHIMNEY SEAL (REHAB) 7.00 EACH 1,550.00 10,850.00 - - - - - 10,850.00
77 REPLACE & ADJUST RING AND CASTING 3.00 EACH 1,400.00 4,200.00 1.50 2,100.00 1.50 2,100.00 2,100.00 50% 2,100.00
78 SANITARY SEWER TRACER SYSTEM 1.00 LS 2,600.00 2,600.00 1.00 2,600.00 1.00 2,600.00 2,600.00 100% -
79 REMOVE GATE VALVE AND BOX 16.00 EACH 300.00 4,800.00 11.00 3,300.00 11.00 3,300.00 3,300.00 69% 1,500.00
80 REMOVE CURB STOP AND BOX 22.00 EACH 150.00 3,300.00 19.00 2,850.00 19.00 2,850.00 2,850.00 86% 450.00
81 REMOVE HYDRANT 6.00 EACH 400.00 2,400.00 4.00 1,600.00 4.00 1,600.00 1,600.00 67% 800.00
82 REMOVE WATER MAIN 1,806.00 LF 5.00 9,030.00 1,216.00 6,080.00 1,216.00 6,080.00 6,080.00 67% 2,950.00
83 TEMPORARY WATER SERVICE 1.00 LS 20,000.00 20,000.00 0.86 17,200.00 0.86 17,200.00 17,200.00 86% 2,800.00
84 CONNECT TO EXISTING WATER MAIN 12.00 EACH 1,500.00 18,000.00 8.00 12,000.00 8.00 12,000.00 12,000.00 67% 6,000.00
85 DISCONNECT EXISTING WATER MAIN (P) 3.00 EACH 900.00 2,700.00 3.00 2,700.00 3.00 2,700.00 2,700.00 100% -
86 HYDRANT (8.0' BURY) 5.00 EACH 6,600.00 33,000.00 4.00 26,400.00 4.00 26,400.00 26,400.00 80% 6,600.00
87 HYDRANT (11' BURY) 1.00 EACH 8,000.00 8,000.00 - - - - - 8,000.00
88 ADJUST VALVE BOX 18.00 EACH 300.00 5,400.00 2.00 600.00 2.00 600.00 600.00 11% 4,800.00
89 1" CORPORATION STOP 27.00 EACH 450.00 12,150.00 20.00 9,000.00 20.00 9,000.00 9,000.00 74% 3,150.00
90 6" GATE VALVE AND BOX 16.00 EACH 2,675.00 42,800.00 9.00 24,075.00 9.00 24,075.00 24,075.00 56% 18,725.00
91 8" GATE VALVE AND BOX 2.00 EACH 3,500.00 7,000.00 2.00 7,000.00 2.00 7,000.00 7,000.00 100% -
92 10" GATE VALVE AND BOX 2.00 EACH 6,000.00 12,000.00 1.00 6,000.00 1.00 6,000.00 6,000.00 50% 6,000.00
93 1" CURB STOP AND BOX 27.00 EACH 500.00 13,500.00 20.00 10,000.00 20.00 10,000.00 10,000.00 74% 3,500.00
94 1" TYPE PE PIPE 765.00 LF 35.00 26,775.00 516.00 18,060.00 516.00 18,060.00 18,060.00 67% 8,715.00
95 DIRECTIONAL DRILL SERVICE BELOW CSAH 12 2.00 EACH 5,000.00 10,000.00 2.00 10,000.00 2.00 10,000.00 10,000.00 100% -
96 6" PVC WATERMAIN 65.00 LF 50.00 3,250.00 63.50 3,175.00 63.50 3,175.00 3,175.00 98% 75.00
97 8" PVC WATERMAIN 645.00 LF 57.00 36,765.00 645.00 36,765.00 645.00 36,765.00 36,765.00 100% -
98 10" PVC WATERMAIN 1,130.00 LF 75.00 84,750.00 140.00 10,500.00 140.00 10,500.00 10,500.00 12% 74,250.00
99 10" PVC WATERMAIN (DIRECTIONAL DRILLED) 780.00 LF 185.00 144,300.00 422.00 78,070.00 722.00 133,570.00 133,570.00 93% 10,730.00
100 4" INSULATION 99.00 SY 50.00 4,950.00 37.00 1,850.00 37.00 1,850.00 1,850.00 37% 3,100.00
101 WATERMAIN FITTINGS 2,992.00 LB 15.00 44,880.00 1,971.00 29,565.00 1,971.00 29,565.00 29,565.00 66% 15,315.00
EJCDC C-620 Contractor's Application for Payment
Unit Price (c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved. 2 of 5
28
Progress Estimate - Unit Price Work Contractor's Application for Payment
Owner: CITY OF KENYON Owner's Project No.:
Engineer: BOLTON & MENK Engineer's Project No.: 24X.134934.000
Contractor: FITZGERALD EXCAVATING & TRUCKING INC Contractor's Project No.:
Project: 2025 STREET & UTILITY IMPROVEMENTS Agency's Project No.:
Contract:
Application No.: 4 Application Period: From 11/01/25 to 11/28/25 Application Date: 12/09/25
A B C D E F F1 F2 G H I J K L
Contract Information Previous Estimate Work Completed
Work Completed % of
Estimated Value of Work and Materials Value of
Value of Bid Item Quantity Completed to Date Materials Currently Stored Stored to Date Item Balance to Finish (F
Bid Item Unit Price (C X E) Quantity Previous Value Previous Incorporated in (E X G) (not in G) (H + I) (J / F) - J)
No. Description Item Quantity Units ($) ($) Estimate Estimate the Work ($) ($) ($) (%) ($)
102 VALVE BOX TOP SECTION & CAP 1.00 EACH 250.00 250.00 - - - - - 250.00
103 WATERMAIN TRACER SYSTEM 1.00 LS 5,000.00 5,000.00 0.40 2,000.00 0.40 2,000.00 2,000.00 40% 3,000.00
104 REMOVE PIPE APRON 1.00 EACH 250.00 250.00 - - - - - 250.00
105 REMOVE MANHOLE OR CATCH BASIN 1.00 EACH 400.00 400.00 1.00 400.00 1.00 400.00 400.00 100% -
106 REMOVE SEWER PIPE (STORM) 118.00 LF 9.00 1,062.00 - - - - - 1,062.00
107 SALVAGE CASTING 1.00 EACH 100.00 100.00 1.00 100.00 1.00 100.00 100.00 100% -
108 24" RC PIPE APRON 1.00 EACH 1,500.00 1,500.00 - - - - - 1,500.00
109 TRASH GUARD FOR 24" PIPE APRON 1.00 EACH 1,600.00 1,600.00 - - - - - 1,600.00
110 24" RC PIPE SEWER DESIGN 3006 CLASS III 40.00 LF 110.00 4,400.00 - - - - - 4,400.00
111 CONNECT TO EXISTING STORM SEWER 1.00 EACH 1,000.00 1,000.00 - - - - - 1,000.00
112 CONNECT TO EXISTING DRAINAGE STRUCTURE 2.00 EACH 1,500.00 3,000.00 - - - - - 3,000.00
113 12" PIPE SEWER 81.00 LF 45.00 3,645.00 - - - - - 3,645.00
114 18" PIPE SEWER 732.00 LF 55.00 40,260.00 - - - - - 40,260.00
115 24" PIPE SEWER 219.00 LF 68.00 14,892.00 - - - - - 14,892.00
116 CASTING ASSEMBLY (STORM) 13.00 EACH 1,200.00 15,600.00 - - - - - 15,600.00
117 FINAL CASTING ADJUSTMENT (DONUT CUT) 4.00 EACH 1,700.00 6,800.00 - - - - - 6,800.00
118 CONSTRUCT DRAINAGE STRUCTURE DESIGN SPECIAL (R-1) 21.00 LF 450.00 9,450.00 - - - - - 9,450.00
119 CONSTRUCT DRAINAGE STRUCTURE DESIGN 48-4020 10.20 LF 600.00 6,120.00 - - - - - 6,120.00
120 CONSTRUCT DRAINAGE STRUCTURE DESIGN 54-4020 9.00 LF 950.00 8,550.00 - - - - - 8,550.00
121 CONSTRUCT DRAINAGE STRUCTURE DESIGN 48-4022 4.60 LF 500.00 2,300.00 - - - - - 2,300.00
122 CONSTRUCT DRAINAGE STRUCTURE DESIGN 60-4022 6.30 LF 1,000.00 6,300.00 - - - - - 6,300.00
123 RECONSTRUCT DRAINAGE STRUCTURE 9.90 LF 700.00 6,930.00 - - - - - 6,930.00
1001 MOBILIZATION (5TH ST) 1.00 LS 10,000.00 10,000.00 0.80 8,000.00 0.90 9,000.00 9,000.00 90% 1,000.00
1002 SALVAGE SIGN 1.00 EACH 50.00 50.00 1.00 50.00 1.00 50.00 50.00 100% -
1003 SAWING BITUMINOUS PAVEMENT (FULL DEPTH) 516.00 LF 5.00 2,580.00 476.00 2,380.00 567.00 2,835.00 2,835.00 110% (255.00)
1004 REMOVE CURB & GUTTER 315.00 LF 5.00 1,575.00 328.00 1,640.00 328.00 1,640.00 1,640.00 104% (65.00)
1005 REMOVE BITUMINOUS DRIVEWAY PAVEMENT 34.00 SY 7.00 238.00 44.00 308.00 44.00 308.00 308.00 129% (70.00)
1006 REMOVE BITUMINOUS PAVEMENT 1,541.00 SY 5.00 7,705.00 1,659.10 8,295.50 1,659.10 8,295.50 8,295.50 108% (590.50)
1007 EXCAVATION - COMMON (P) 1,216.00 CY 16.00 19,456.00 1,216.00 19,456.00 1,216.00 19,456.00 19,456.00 100% -
1008 EXCAVATION - SUBGRADE (P) 347.00 CY 16.00 5,552.00 347.00 5,552.00 347.00 5,552.00 5,552.00 100% -
1009 SELECT GRANULAR EMBANKMENT (CV) (P) 347.00 CY 25.00 8,675.00 347.00 8,675.00 347.00 8,675.00 8,675.00 100% -
1010 GEOTEXTILE FABRIC TYPE 9 2,847.00 SY 2.25 6,405.75 1,984.00 4,464.00 1,984.00 4,464.00 4,464.00 70% 1,941.75
1011 AGGREGATE BASE (CV) CLASS 5 (P) 526.00 CY 25.00 13,150.00 526.00 13,150.00 526.00 13,150.00 13,150.00 100% -
1012 TYPE SP 9.5 WEARING COURSE MIXTURE (3;C) 1.5" THICK 3,553.00 SY 9.00 31,977.00 - - 2,189.00 19,701.00 19,701.00 62% 12,276.00
1013 TYPE SP 12.5 WEARING COURSE MIXTURE (3;C) 2.0" THICK 1,777.00 SY 11.75 20,879.75 - - 1,773.00 20,832.75 20,832.75 100% 47.00
1014 BITUMINOUS PATCH SPECIAL (DRIVEWAY) 25.00 SY 38.25 956.25 - - 15.00 573.75 573.75 60% 382.50
1015 6" PERF PVC PIPE DRAIN 795.00 LF 15.00 11,925.00 822.00 12,330.00 822.00 12,330.00 12,330.00 103% (405.00)
1016 6" PVC PIPE DRAIN CLEANOUT 4.00 EACH 300.00 1,200.00 4.00 1,200.00 4.00 1,200.00 1,200.00 100% -
1017 4" CONCRETE WALK 3,535.00 SF 7.50 26,512.50 3,451.00 25,882.50 3,851.00 28,882.50 28,882.50 109% (2,370.00)
1018 6" CONCRETE WALK 335.00 SF 12.25 4,103.75 254.50 3,117.63 254.50 3,117.63 3,117.63 76% 986.12
1019 TRUNCATED DOMES 90.00 SF 55.00 4,950.00 90.00 4,950.00 90.00 4,950.00 4,950.00 100% -
1020 CONCRETE CURB AND GUTTER DESIGN B618 855.00 LF 25.75 22,016.25 888.40 22,876.30 888.40 22,876.30 22,876.30 104% (860.05)
1021 7" CONCRETE VALLEY GUTTER 117.00 SY 95.00 11,115.00 101.00 9,595.00 101.00 9,595.00 9,595.00 86% 1,520.00
1022 7" CONCRETE DRIVEWAY PAVEMENT (COMMERCIAL) 40.00 SY 92.50 3,700.00 32.80 3,034.00 32.80 3,034.00 3,034.00 82% 666.00
1023 CONCRETE SILL 420.00 LF 12.50 5,250.00 413.00 5,162.50 413.00 5,162.50 5,162.50 98% 87.50
1024 TRAFFIC CONTROL (5TH ST) 1.00 LS 1,525.00 1,525.00 0.80 1,220.00 0.90 1,372.50 1,372.50 90% 152.50
1025 INSTALL SIGN 1.00 EACH 350.00 350.00 - - 1.00 350.00 350.00 100% -
1026 STABILIZED CONSTRUCTION EXIT 1.00 LS 500.00 500.00 - - - - - 500.00
1027 STORM DRAIN INLET PROTECTION 9.00 EACH 200.00 1,800.00 - - - - - 1,800.00
1028 SILT FENCE; TYPE MS 523.00 LF 2.25 1,176.75 - - - - - 1,176.75
1029 SEDIMENT CONTROL LOG TYPE WOOD FIBER 60.00 LF 5.00 300.00 700.00 3,500.00 700.00 3,500.00 3,500.00 1167% (3,200.00)
EJCDC C-620 Contractor's Application for Payment
Unit Price (c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved. 3 of 5
29
Progress Estimate - Unit Price Work Contractor's Application for Payment
Owner: CITY OF KENYON Owner's Project No.:
Engineer: BOLTON & MENK Engineer's Project No.: 24X.134934.000
Contractor: FITZGERALD EXCAVATING & TRUCKING INC Contractor's Project No.:
Project: 2025 STREET & UTILITY IMPROVEMENTS Agency's Project No.:
Contract:
Application No.: 4 Application Period: From 11/01/25 to 11/28/25 Application Date: 12/09/25
A B C D E F F1 F2 G H I J K L
Contract Information Previous Estimate Work Completed
Work Completed % of
Estimated Value of Work and Materials Value of
Value of Bid Item Quantity Completed to Date Materials Currently Stored Stored to Date Item Balance to Finish (F
Bid Item Unit Price (C X E) Quantity Previous Value Previous Incorporated in (E X G) (not in G) (H + I) (J / F) - J)
No. Description Item Quantity Units ($) ($) Estimate Estimate the Work ($) ($) ($) (%) ($)
1030 SEDIMENT CONTROL LOG TYPE ROCK 40.00 LF 5.00 200.00 - - - - - 200.00
1031 COMPOST GRADE 2 39.00 CY 30.00 1,170.00 - - - - - 1,170.00
1032 FERTILIZER TYPE 3 29.00 LB 2.50 72.50 - - - - - 72.50
1033 SODDING 700.00 SY 7.00 4,900.00 - - 1,033.00 7,231.00 7,231.00 148% (2,331.00)
1034 RAPID STABILIZATION METHOD 2 350.00 SY 3.00 1,050.00 - - - - - 1,050.00
1035 TOPSOIL PREPARATION 700.00 SY 2.50 1,750.00 - - 1,033.00 2,582.50 2,582.50 148% (832.50)
1036 TURF MAINTENANCE (5TH ST) 30.00 DAY 100.00 3,000.00 - - 7.00 700.00 700.00 23% 2,300.00
1037 REMOVE HYDRANT 1.00 EACH 400.00 400.00 1.00 400.00 1.00 400.00 400.00 100% -
1038 REMOVE WATERMAIN PIPE 538.00 LF 5.00 2,690.00 553.00 2,765.00 553.00 2,765.00 2,765.00 103% (75.00)
1039 CONNECT TO EXIST WATERMAIN 2.00 EACH 1,500.00 3,000.00 2.00 3,000.00 2.00 3,000.00 3,000.00 100% -
1040 ADJUST VALVE BOX 2.00 EACH 300.00 600.00 2.00 600.00 2.00 600.00 600.00 100% -
1041 6" GATE VALVE & BOX 3.00 EACH 2,500.00 7,500.00 3.00 7,500.00 3.00 7,500.00 7,500.00 100% -
1042 6" PVC WATERMAIN 15.00 LF 3,500.00 52,500.00 0.40 1,400.00 0.40 1,400.00 1,400.00 3% 51,100.00
1043 8" PVC WATERMAIN 520.00 LF 55.00 28,600.00 494.80 27,214.00 494.80 27,214.00 27,214.00 95% 1,386.00
1044 HYDRANT (8' BURY) 1.00 EACH 6,500.00 6,500.00 1.00 6,500.00 1.00 6,500.00 6,500.00 100% -
1045 WATERMAIN FITTINGS 300.00 LB 15.25 4,575.00 457.90 6,982.98 457.90 6,982.98 6,982.98 153% (2,407.98)
1046 WATERMAIN TRACER SYSTEM (5TH ST) 1.00 LS 5,000.00 5,000.00 1.00 5,000.00 1.00 5,000.00 5,000.00 100% -
1047 REMOVE MANHOLE OR CATCH BASIN 1.00 EACH 500.00 500.00 1.00 500.00 1.00 500.00 500.00 100% -
1048 REMOVE SEWER PIPE (STORM) 85.00 LF 9.00 765.00 71.00 639.00 71.00 639.00 639.00 84% 126.00
1049 CONNECT TO EXISTING STORM 2.00 EACH 1,250.00 2,500.00 2.00 2,500.00 2.00 2,500.00 2,500.00 100% -
1050 CONNECT TO EXISTING DRAINAGE STRUCTURE 1.00 EACH 1,500.00 1,500.00 1.00 1,500.00 1.00 1,500.00 1,500.00 100% -
1051 18" PIPE SEWER 46.00 LF 55.00 2,530.00 72.20 3,971.00 72.20 3,971.00 3,971.00 157% (1,441.00)
1052 STORM SEWER CASTING ASSEMBLY 2.00 EACH 1,200.00 2,400.00 3.00 3,600.00 3.00 3,600.00 3,600.00 150% (1,200.00)
1053 CONSTRUCT DRAINAGE STRUCTURE DESIGN SPECIAL (R-1) 4.30 LF 450.00 1,935.00 4.30 1,935.00 4.30 1,935.00 1,935.00 100% -
1054 CONSTRUCT DRAINAGE STRUCTURE DESIGN 48-4022 5.20 LF 500.00 2,600.00 5.20 2,600.00 5.20 2,600.00 2,600.00 100% -
1055 CONSTRUCTION ALLOWANCE (5TH ST) 18,000.00 UNIT 1.00 18,000.00 20,846.40 20,846.40 20,846.40 20,846.40 20,846.40 116% (2,846.40)
2001 MOBILIZATION (FOREST M&O) 1.00 LS 5,000.00 5,000.00 - - - - - 5,000.00
2002 BITUMINOUS PATCH SPECIAL (PARTIAL DEPTH) 110.00 SY 38.25 4,207.50 - - - - - 4,207.50
2003 MILL BITUMINOUS PAVEMENT (2") 2,832.00 SY 3.00 8,496.00 - - - - - 8,496.00
2004 BITUMINOUS MATERIAL FOR TACK COAT 283.00 GAL 3.50 990.50 - - - - - 990.50
2005 TYPE SP 12.5 WEARING COURSE MIXTURE (3;B) 2.0" THICK 2,832.00 SY 11.00 31,152.00 - - - - - 31,152.00
2006 ADJUST VALVE BOX 2.00 EACH 300.00 600.00 - - - - - 600.00
2007 7" CONCRETE DRIVEWAY PAVEMENT (COMMERCIAL) 15.00 SY 92.50 1,387.50 - - - - - 1,387.50
2008 TRAFFIC CONTROL (FOREST ST M&O) 1.00 LS 700.00 700.00 - - - - - 700.00
2009 CONSTRUCTION ALLOWANCE (FOREST ST M&O) 1,000.00 UNIT 1.00 1,000.00 - - - - - 1,000.00
3001 MOBILIZATION (RED WING AVE) 1.00 LS 2,000.00 2,000.00 0.80 1,600.00 1.00 2,000.00 2,000.00 100% -
3002 TREE CLEARING 1.00 EACH 1,200.00 1,200.00 1.00 1,200.00 1.00 1,200.00 1,200.00 100% -
3003 TREE GRUBBING 1.00 EACH 500.00 500.00 1.00 500.00 1.00 500.00 500.00 100% -
3004 SALVAGE SIGN 1.00 EACH 50.00 50.00 - - 1.00 50.00 50.00 100% -
3005 REMOVE CURB & GUTTER 15.00 LF 5.00 75.00 15.00 75.00 15.00 75.00 75.00 100% -
3006 EXCAVATION - COMMON (P) 167.00 CY 16.00 2,672.00 167.00 2,672.00 167.00 2,672.00 2,672.00 100% -
3007 4" CONCRETE WALK 1,545.00 SF 7.50 11,587.50 1,540.00 11,550.00 1,540.00 11,550.00 11,550.00 100% 37.50
3008 6" CONCRETE WALK 85.00 SF 12.25 1,041.25 81.00 992.25 81.00 992.25 992.25 95% 49.00
3009 TRUNCATED DOMES 10.00 SF 55.00 550.00 - - - - - 550.00
3010 CONCRETE CURB AND GUTTER DESIGN B618 15.00 LF 25.75 386.25 15.00 386.25 15.00 386.25 386.25 100% -
3011 7" CONCRETE DRIVEWAY PAVEMENT (COMMERCIAL) 25.00 SY 92.50 2,312.50 19.20 1,776.00 19.20 1,776.00 1,776.00 77% 536.50
3012 STORM DRAIN INLET PROTECTION 2.00 EACH 200.00 400.00 - - - - - 400.00
3013 SEDIMENT CONTROL LOG TYPE ROCK 10.00 LF 5.00 50.00 - - - - - 50.00
3014 COMPOST GRADE 2 30.00 CY 30.00 900.00 - - - - - 900.00
3015 FERTILIZER TYPE 3 23.00 LB 2.50 57.50 - - - - - 57.50
3016 SODDING 535.00 SY 7.00 3,745.00 - - 544.00 3,808.00 3,808.00 (63.00)
EJCDC C-620 Contractor's Application for Payment
Unit Price (c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved. 4 of 5
30
Progress Estimate - Unit Price Work Contractor's Application for Payment
Owner: CITY OF KENYON Owner's Project No.:
Engineer: BOLTON & MENK Engineer's Project No.: 24X.134934.000
Contractor: FITZGERALD EXCAVATING & TRUCKING INC Contractor's Project No.:
Project: 2025 STREET & UTILITY IMPROVEMENTS Agency's Project No.:
Contract:
Application No.: 4 Application Period: From 11/01/25 to 11/28/25 Application Date: 12/09/25
A B C D E F F1 F2 G H I J K L
Contract Information Previous Estimate Work Completed
Work Completed % of
Estimated Value of Work and Materials Value of
Value of Bid Item Quantity Completed to Date Materials Currently Stored Stored to Date Item Balance to Finish (F
Bid Item Unit Price (C X E) Quantity Previous Value Previous Incorporated in (E X G) (not in G) (H + I) (J / F) - J)
No. Description Item Quantity Units ($) ($) Estimate Estimate the Work ($) ($) ($) (%) ($)
3017 RAPID STABILIZATION METHOD 2 268.00 SY 3.00 804.00 - - - - - 804.00
3018 INSTALL SIGN 1.00 EACH 350.00 350.00 - - 1.00 350.00 350.00 -
3019 TOPSOIL PREPARATION 535.00 SY 2.50 1,337.50 - - 544.00 1,360.00 1,360.00 (22.50)
3020 TURF MAINTENANCE (RED WING AVE WALK) 30.00 DAY 500.00 15,000.00 - - 7.00 3,500.00 3,500.00 11,500.00
3021 CONSTRUCTION ALLOWANCE (RED WING AVE WALK) 1,000.00 UNIT 1.00 1,000.00 - - - - - 1,000.00
Original Contract Totals $ 2,294,629.25 $ 866,194.47 $ 1,098,616.97 $ - $ 1,098,616.97 48% $ 1,196,012.28
EJCDC C-620 Contractor's Application for Payment
Unit Price (c) 2018 National Society of Professional Engineers for EJCDC. All rights reserved. 5 of 5
31
AGENDA ITEM NO.
VIII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Legal
AGENDA SECTION: LEGAL
SUBJECT: Ordinance No. 113: Regulating the Discharge of Firearms, Bows, and
Hunting Within City Limits
1. Resolution 2025-25: Approving Publication of Ordinance No.
113 by Title and Summary
Summary of Changes from the Original Ordinance –
Hunting & Weapon Discharge Ordinance
1. Bow Hunting on Private Property is Now Explicitly Allowed
(with Restrictions):
The amended ordinance allows limited bow hunting on private
property within city limits, provided:
The hunter has landowner permission;
All Minnesota DNR regulations and state safety laws are
followed; and
All required safety setback distances from occupied
buildings are met.
This was previously unclear or fully prohibited under the
original ordinance.
2. All Hunting is Prohibited on City-Owned Property:
The amendment clearly prohibits all forms of hunting—firearms
and archery—on all City-owned property, including:
City parks
Trails
Public facilities
32
Public rights-of-way
This establishes a uniform, easily enforceable no-hunting
policy for all public land.
3. Firearms Discharge Remains Fully Prohibited in City Limits:
No change was made to the long-standing prohibition on firearm
discharge anywhere within the city.
4. State Law and DNR Restrictions are Now Incorporated by
Reference:
The ordinance now directly incorporates Minnesota state law and
DNR hunting restrictions, including:
Prohibitions near occupied buildings and livestock;
Road and right-of-way discharge bans;
Property permission requirements;
Public land restrictions;
Posted “No Hunting” and safety zones.
SUGGESTED ACTION: MOTION NEEDED TO ADOPT ORDINANCE 113
MOTION NEEDED (ONLY IF ORDINANCE 113 IS ADOPTED)
TO ADOPT RESOLUTION 2025-25: APPROVING
PUBLICATION OF ORDINANCE NO. 113 BY TITLE AND
SUMMARY
ATTACHMENTS:
Ordinance_113_Regulating_the_Discharge_of_Firearms_Bows_and_Hunting_within_City_Limits.docx
Resolution 2025-25 Approving_publication_of_Ordinance_No__113_by_title_and_summary.doc
33
ORDINANCE NO. 113, THIRD SERIES
AN ORDINANCE AMENDING THE KENYON CITY CODE BY
ADDING A NEW SECTION 925 REGULATING THE DISCHARGE
OF FIREARMS, BOWS, AND HUNTING WITHIN CITY LIMITS
THE CITY COUNCIL OF THE CITY OF KENYON, MINNESOTA, ORDAINS:
Section 1. Chapter 9 of the Kenyon City Code is hereby amended by adding the following new
Section 925 Firearms, Bows and Hunting Within City Limits, as follows:
SECTION 925 – FIREARMS, BOWS AND HUNTING WITHIN CITY LIMITS
925.01. Findings and Purpose: The City of Kenyon makes the following legislative findings: The
purpose of this ordinance is to protect the public health, safety and welfare of the residents of the
City by regulating the discharge of firearms, the use of bows, and the location of hunting activities
within the corporate limits while maintaining consistency with Minnesota law and Minnesota
Department of Natural Resources (DNR) regulations.
925.03. Authority: This ordinance is adopted pursuant to the authority granted to the City of
Kenyon under the Minnesota Constitution, Minnesota Statutes §§ 412.221, 471.633, 97B.001,
and other applicable laws authorizing municipalities to regulate weapons, hunting activity and
public safety.
925.05. Definitions: For the purposes of this ordinance, the following terms shall have the
meanings given:
Subd. 1. City. The City of Kenyon, Minnesota.
Subd. 2. City limits or corporate limits. The geographic boundaries of the City of Kenyon.
Subd. 3. City-Owned Property. All parks, trails, road rights-of-way, public lands, buildings,
facilities, and any real property owned, leased, or controlled by the City of Kenyon.
Subd 4. Firearm. Any device designed to propel a projectile by the action of an explosive,
including, but not limited to, pistols, rifles, shotguns, and muzzleloaders.
Subd. 5. Bow. Any device designed to propel an arrow by elastic force, including but not
limited to longbows, recurve bows, compound bows, and crossbows.
Subd. 6. Discharge. The firing, shooting, releasing, launching, or otherwise allowing the
propelled projectile to leave the device.
Subd. 7. Hunting. Pursuing, shooting, killing, capturing, or attempting to take wild animals or
game.
Subd. 8. Person. Any natural person, firm, partnership, association or corporation.
925.07. Prohibition: The discharge of any firearm within the City of Kenyon is strictly
prohibited at all times, except as authorized in Section 8 of this ordinance.
925.09. Hunting on City-Owned Property Prohibited: No hunting of any kind is permitted on
City-owned property, including but not limited to:
(A) City parks and trails.
(B) Public rights-of-way.
1
DOCSOPEN\KE200\5\1064681.v2-12/8/25
34
(C) Public buildings and grounds.
(D) Public recreation areas.
(E) Any land owned, leased, or maintained by the City.
This prohibition applies to both firearm and bow hunting, without exception, except as
authorized under 925.15.
925.11. Bow Hunting on Private Property Permitted With Restrictions: Bow hunting on private
property within the City is permitted, provided that all of the following conditions are met:
(A) Landowner Permission Required. The hunter must have the express permission of the
property owner.
(B) State Law 500-Foot Safety Zone Applies. In accordance with Minnesota Statutes §
97B.001, no discharge may occur within 500 feet of any occupied building, livestock, or
corral, unless the owner of that structure or livestock gives permission.
(C) Minnesota DNR Rules Must Be Followed. All hunting must comply with:
a. Licensed hunting requirements.
b. Legal seasons.
c. Bag limits.
d. Legal equipment restrictions.
e. Shooting hour limitations.
f. Safety clothing and blaze orange/pink requirements when applicable.
(D) Trespassing Prohibited. No person may enter another’s land for hunting without
permission pursuant to Minnesota trespass law.
(E) Public Road Restrictions Apply. No person may shoot from, across, or along any public
road or right-of-way.
(F) No Reckless Endangerment. Any discharge that creates a risk to persons or property is
prohibited.
925.13. Prohibited Hunting Locations Under State and DNR Rules: Hunting is not permitted,
regardless of weapon type, in the following locations pursuant to Minnesota law and DNR
regulation:
(A) Within 500 feet of occupied buildings or livestock without owner permission
(B) From, across, or along public roadways
(C) On posted “No Hunting” land or established safety zones
(D) Within State Parks except during special DNR-authorized hunts
(E) Within Scientific & Natural Areas (SNAs) unless expressly posted as open
(F) On City-owned property as stated in Section 5
(G) In any location where discharge would violate state, federal, county, or local law
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925.15. Authorized Exceptions: This ordinance shall not apply to:
(A) Law enforcement officers of the City, county, state or federal government acting in the
scope of their duties.
(B) Persons acting in defense of persons or property where use of force is otherwise
permitted by Minnesota law.
(C) Discharge of a firearm or other projectile device at an officially designated and permitted
shooting range, archery range, or training facility located within the City and approved by the
City Council. (No such range shall be established without prior City Council approval and
review.)
(D) Legally authorized activities carried out by the U.S. Fish & Wildlife Service, Minnesota
Department of Natural Resources, or other governmental agencies when acting in an official
capacity (for example, depredation control) and only when such activity has been coordinated
with and approved by the City.
(E) Use of antique firearms or similar devices for ceremonial purposes if conducted under a
City permit or with prior City approval and with safety precautions required by the City.
925.17. Temporary Special Permits: The City Council may, by resolution, authorize temporary
permits allowing discharge for specific events or uses (e.g., ceremonial salutes, special training)
subject to conditions designed to protect public safety. Applications for permits must: (1) be
made in writing; (2) identify the applicant, purpose, location, date(s) and times; (3) show proof
of insurance and safety plan; and (4) comply with any conditions imposed by the City.
925.19. Enforcement and Penalties:
(A) Any person who violates any provision of this ordinance shall be subject to enforcement
and penalties as provided in the City Code. Violations may be prosecuted as a misdemeanor or as
municipal ordinance violations, at the City’s option, and may be subject to: (i) a civil fine not to
exceed $1,000 for each offense; (ii) criminal penalties permitted under Minnesota law; and (iii)
restitution for any damage caused. Each separate discharge constitutes a separate offense.
(B) The City may seek injunctive or other equitable relief to prevent ongoing or threatened
violations.
(C) Officers of the Kenyon Police Department are authorized to issue citations for violations
of this ordinance.
925.21. Civil Liability: Nothing in this ordinance shall limit the civil liability of any person
whose negligent or willful discharge of a firearm, bow, or other projectile device causes injury,
death, or property damage. The liability provisions of applicable law remain in effect.
925.23. Severability: If any section, subsection, sentence, clause, phrase or portion of this
ordinance is for any reason held invalid or unconstitutional by a court of competent jurisdiction,
such decision shall not affect the validity of the remaining portions of this ordinance.
Section 2. Effective Date. This ordinance shall be in full force and effect upon its passage and
publication.
Adopted by the City Council of the City of Kenyon, Minnesota, this 9th day of December, 2025.
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______________________________
ATTEST: Donald Kirchmann, Mayor
_________________________________
Scott Lehner, City Administrator
(Published in the Kenyon Leader on December 17, 2025)
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RESOLUTION NO. 2025-25
CITY OF KENYON
COUNTY OF GOODHUE
STATE OF MINNESOTA
A RESOLUTION APPROVING PUBLICATION OF
ORDINANCE NO. 113 BY TITLE AND SUMMARY
WHEREAS, on November 12, 2025, the City Council of the City of Kenyon adopted
Ordinance No. 113 entitled “AN ORDINANCE OF THE CITY OF KENYON REGULATING
FIREARMS, BOWS, AND HUNTING WITHIN CITY LIMITS”; and
WHEREAS, the ordinance is approximately three pages in length; and
WHEREAS, Minnesota Statutes, section 412.191, subd. 4 allows publication by title and
summary in the case of lengthy ordinances; and
WHEREAS, the City Council believes that the following summary would clearly inform the
public of the intent and effect of the ordinance.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of
Kenyon that the following summary is hereby approved for official publication:
SUMMARY PUBLICATION
ORDINANCE NO. 113
AN ORDINANCE OF THE CITY OF KENYON REGULATING FIREARMS, BOWS,
AND HUNTING WITHIN CITY LIMITS
On December 9, 2025, the City Council of the City of Kenyon adopted Ordinance No. 113,
the title of which is stated above. The Ordinance regulates firearms, bows, and hunting
within the City of Kenyon. The Ordinance allows limited bow hunting on private property
with landowner permission and full compliance with Minnesota DNR and state safety
laws. The ordinance prohibits all hunting on City-owned property, including parks, trails,
and public facilities. The existing ban on firearm discharge within city limits remains
unchanged. The Ordinance sets forth exceptions for law enforcement, persons acting in
self-defense permitted by Minnesota law, officially designated and permitted shooting
range or training facility approved by city council, legally authorized activities caried out
by governmental agencies, and other circumstances permitted and approved by the city.
The ordinance also establishes enforcement and penalties for violations. The full text of
Ordinance No. 113 is available for inspection at Kenyon City Hall during regular business
hours.
NOW, THEREFORE, IT IS HEREBY FURTHER RESOLVED by the City Council of
the City of Kenyon that the Deputy City Clerk is directed to publish the above summary in lieu of
publication of the entire ordinance, and is further directed to post a copy of the entire text of the
ordinance at the Kenyon Library and on the bulletin board at Kenyon City Hall for a period of not
1
38
less than 30 days. In addition, a printed copy of the ordinance is available for inspection by any
person during regular office hours at Kenyon City Hall.
Adopted by the Kenyon City Council on this 9th day of December, 2025.
____________________________________
Donald Kirchmann
Mayor
ATTEST:
___________________________________________
Scott Lehner
City Administrator
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AGENDA ITEM NO.
VIII.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Legal
ITEM TYPE: New Business
AGENDA SECTION: LEGAL
SUBJECT: MN Paid Leave Policy
SUGGESTED ACTION: Attorney Riggs and his staff put together this policy for the new MN
Paid Leave.
MOTION NEEDED to adopt this policy with any final revisions by
staff to follow.
ATTACHMENTS:
MINNESOTA_PAID_LEAVE_POLICY_-_State_Plan_template.DOCX
40
MINNESOTA PAID LEAVE POLICY
(State Plan)
Background
Employees are entitled to leaves of absence for various reasons, including reasons protected
by law. Depending upon an employee’s situation, more than one form of leave may apply during
the same period. There are many laws that address and/or otherwise relate to leave, and these
laws are continually changing and being addressed by state and/or federal courts, agencies,
and other decision makers. These laws include the Family Medical Leave Act (FMLA),
Americans with Disabilities Act (ADA), Pregnant Workers Fairness Act (PWFA), Minnesota
Human Rights Act (MHRA), Minnesota Paid Family and Medical Leave (MNPL, also referred to
as PFML or paid leave), Earned Sick and Safe Time (ESST), Minnesota Pregnancy and Parental
Leave Law, workers’ compensation, public safety duty disability law, and other laws. An
employee will need to meet the requirements of each form of leave separately. Leave requests
will be evaluated on a case-by-case basis. In addition, collective bargaining agreements and
other employment contracts may have additional provisions related to leaves. If there is any
inconsistency between city policy and the law, the city will follow the law.
Except as otherwise stated, all paid time off, taken under any of the City’s leave programs, must
be taken concurrently (avoiding stacking of leave if possible) as well as to avoid any intervening
unpaid leave between periods of paid leave. The City will provide employees with time away
from work as required by state or federal statutes or contracts, if there are requirements for such
time off that are not described in and/or inconsistent with the City’s personnel policies.
Overview
Effective January 1, 2026, the City will provide time off to eligible employees who qualify for
Minnesota Paid Leave (MNPL) benefits under Minnesota law. The City of _______ is a
participant in the State of Minnesota’s Paid Leave program. MNPL benefits are funded through
premium contributions payable to the State of Minnesota. The premium cost will be split between
the City and employees as follows: The City of ___________ will pay 50% of the required
premium and employees will pay 50% of the premium cost through payroll deductions starting
January 1, 2026.
Eligibility
Eligibility determinations for MNPL benefits are made by the State of Minnesota. Generally, to
be eligible for MNPL, you must meet both of the following requirements:
1. Work 50% or more during the calendar year at a location in Minnesota**; and
2. Meet the financial eligibility requirements by having earned over a specific amount of
wages as defined by Minnesota law at the time of your requested leave.
**(If you work less than 50% of the time in a calendar year in Minnesota, another state, or U.S.
territory or foreign nation, but you live in Minnesota during 50% or more of the calendar year,
your employment is also covered by paid leave.)
Benefit Amount
An employee's weekly MNPL benefits are calculated and determined by the Minnesota
Department of Employment and Economic Development (DEED).
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Definitions (Please note that these definitions are or may be different than definitions
used in other leave-related laws, and therefore, eligibility and other provisions may differ.)
“Family member” includes:
o Spouse or partner
o Child (including biological, adopted, step, or foster children, or a child you raise
even if you are not legally related)
o Parent or person who raised you
o Sibling
o Grandchild or grandparent
o In-laws (including son, daughter, father, or mother)
o Anyone close to you who depends on you like family, even if not related by blood
A “serious health condition” means a physical or mental illness, injury, impairment,
condition, or substance use disorder. Taking care of yourself for this serious condition
may involve evaluation, treatment, inpatient care, recovery, or not being able to perform
regular work, attend school, or do regular daily activities. This includes childbirth,
conditions related to pregnancy, or surgery.
Leave Entitlement and Usage
The State of Minnesota may approve MNPL leave for the following conditions in a benefit year:
Up to 12 weeks of medical leave (for yourself) to take care of yourself for a serious health
condition, including pregnancy, childbirth, recovery, or surgery.
Up to 12 weeks of family leave to:
o Bond with a child through birth, adoption, or foster placement
o Care for a family member with a serious health condition
o Support a military family member called to active duty
o Receive covered types of care for yourself or a family member because of
domestic abuse, sexual assault, or stalking
You can take both types of leave in the same year, but you cannot exceed 20 weeks total within
a single benefit year. For example, an employee may be entitled to 12 weeks of family leave to
bond with a child and another 8 weeks of medical leave for their serious health condition. Your
benefit year starts the first day you take Paid Leave, which may be different than the benefit year
for leave taken under other laws. There is no waiting period for MNPL if you are granted the
benefit, but there is a seven-day qualifying event requirement for some types of leave.
MNPL Intermittent Leave
Employees may apply for intermittent leave in most cases, provided the leave is reasonable and
appropriate to the needs of the individual requiring care.
A) Eligibility
In addition to the other eligibility requirements under the MN Paid Leave law, employees seeking
intermittent leave must have at least eight hours of accumulated leave (unless more than 30
days have lapsed since taking the initial leave).
B) Notice
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In situations where employees seek MNPL on an intermittent basis, employees must make a
reasonable effort to provide written notice to ______________of the need for intermittent leave
before applying for MNPL benefits through the State program. As part of the notice, employees
must provide the City with the following: 1) proposed intermittent leave schedule; and 2) a
completed certification from a health care provider identifying the leave as necessary and a
reasonable estimate of the frequency and duration and treatment schedule for the leave.
The City may dispute an employee’s eligibility and/or benefits with DEED if an employee fails to
provide notice and a proposed leave schedule to the city before applying for MNPL benefits.
C) Increments of Leave & Maximum Number of Hours
Consistent with other forms of leave provided by the City, employees may take intermittent leave
in increments of 15 minutes. If eligible for intermittent leave, the City allows a maximum of 480
hours of intermittent leave in any 12-month period. After reaching the maximum amount of
allowed intermittent leave, employees may request continuous MNPL provided the continuous
leave does not exceed the maximum amount of MNPL allowed by law.
Notice
Prior to starting a claim with the State, employees should reach out to _______________to notify
them of the intention to take leave. If the need is foreseeable, we ask that you provide at least
two weeks’ notice prior to taking leave. If the leave is not foreseeable you will still be able to take
leave under MNPL, and we ask that you provide as much notice as possible.
How to Apply for Minnesota Paid Leave
After your leave has been discussed you may apply for MNPL through
____________________________. Contact ________________if you need assistance.
Interaction with Other Laws and Benefits
MNPL will run concurrently with any leave and/or wage supplement for which you may be eligible
for under local, state, or federal law which may include: Family and Medical Leave Act (FMLA)
and/or Minnesota Pregnancy and Parenting Leave.
The City offers a short-term disability (STD) policy that may run concurrently and require its own
filing requirement pursuant to the terms of the STD policy. Contact the City for more information.
STD payments may be offset, pursuant to the terms of the STD policy, by MNPL benefits paid
to the employee.
Supplementing MNPL Benefits with Accrued Paid Leave
If you are receiving MNPL benefits, the City allows you to supplement, or "top off," your MNPL
benefits with any accrued but unused paid leave. If you choose to supplement your MNPL
benefits in this way, the combined weekly sum of MNPL benefits and City-provided paid leave
benefits cannot exceed your Individual Average Weekly Wage (IAWW). In other words, you
cannot receive more income (from all sources including paid leave) while on leave than you
would if you were working. For more information, contact _________________. (Paid leave
(i.e., PTO, vacation) does not accrue during the time an employee is on MNPL.
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Maintaining Health Coverage During Leave
Unless the employee revokes coverage while on MNPL, the City will continue to provide group
health insurance coverage for an employee on MNPL under the same conditions as the
coverage was provided before the employee took leave. You must continue to make timely
payments of your share of the premiums for such coverage. If you are not using paid time off to
cover part or all of the leave, you will be responsible for remitting your portion of health premiums
to the City to ensure continuation of benefits.
Group health insurance may be cancelled if an employee’s premium payment is 30 days late.
Before terminating coverage, the City will provide written notice to the employee at least 15 days
before the coverage is terminated listing the final date payment is due (30 days past the due
date) to avoid cancellation and the date coverage will end if payment is not received.
An employee's share of premium payments for their group health insurance coverage may, at
the employee's option, be:
1. prepaid at or before the start of the leave in which your health deductions may be modified
to accept the agreed upon amounts and cadence of premium deductions;
2. arranged to write a check every 2 weeks for the duration that the employee may be out;
3. postpaid after the leave has ended in which your health deductions may be modified to
accept the agreed upon amounts and cadence of premium deductions.
For any payments requiring deductions other than through normal payroll procedures, the City
will obtain a written authorization for such deduction(s). There may be tax advantages and/or
consequences for these various options, and it is the employee’s obligation to understand these
and decide accordingly. Coverage that lapses due to nonpayment of premiums will be reinstated
immediately upon return to work without a waiting period.
Reinstatement
Upon return from covered MNPL, you will be reinstated to your previous position or to an
equivalent position, with the same status, pay, employment benefits, length-of-service credit,
and seniority credit as of the date of leave as long as you have worked for the City for a minimum
of 90 calendar days.
Upon return to work, if it becomes evident that the employee is unable to perform the key
essential functions of their position (with or without reasonable accommodation), the City may
engage in an interactive process, consistent with the American with Disability Act (ADA) and/or
Minnesota Human Rights Act (MHRA) and other applicable laws and workplace policies,
including workplace safety protocols, to determine appropriate next steps.
Retaliation
The City will not interfere or retaliate against employees who request or take leave in accordance
with the Minnesota Paid Leave law.
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AGENDA ITEM NO.
VIII.C
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Legal
AGENDA SECTION: LEGAL
SUBJECT: Firebird LLC Contract
SUGGESTED ACTION: MOTION NEEDED
ATTACHMENTS:
redlined Firebird Purchase and Development Agreement 12.5.2025 (II).pdf
DOCSOPEN-#1059954-v5-Firebird_LLC_Purchase_and_Development_Agreement.DOC
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PURCHASE AND DEVELOPMENT AGREEMENT
By and Between
KENYON ECONOMIC DEVELOPMENT AUTHORITY
and
FIREBIRD LLC
This document drafted by:
KENNEDY & GRAVEN, CHARTERED (SJR)
150 South Fifth Street, Suite 700
Minneapolis, MN 55402
(612) 337-9300
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TABLE OF CONTENTS
PAGE
PREAMBLE 1
ARTICLE I
Definitions
Section 1.1. Definitions 1
Section 1.2. Exhibits 3
Section 1.3. Rules of Interpretation 3
Section 1.4. Incorporation of Recitals and Exhibits 3
ARTICLE II
Representations and Warranties
Section 2.1. Representations by the Authority 3
Section 2.2. Representations and Warranties by the Developer 4
Section 2.3 Representations Ongoing 4
ARTICLE III
Conveyance of Development Property
Section 3.1. Conveyance of the Development Property 5
Section 3.2. Condition of Title 5
Section 3.3. Financing 6
Section 3.4. Representations 6
Section 3.5. Conditions Precedent to Conveyance 7
Section 3.6. Developer Contingencies 8
Section 3.7. Closing; Delivery and Recording 8
Section 3.8 Attorney Costs……………………………………………………………………...9
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements 9
Section 4.2. Construction Plans 9
Section 4.3. Commencement and Completion of Construction 10
Section 4.4. Certificate of Completion and Release of Forfeiture 10
Section 4.5. Reconstruction of Improvements 11
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PAGE
ARTICLE V
Insurance
Section 5.1. Required Insurance 11
Section 5.2 Evidence of Insurance 12
ARTICLE VI
Collection of Taxes
Section 6.1. Taxes 12
Section 6.2. Right to Collect Delinquent Taxes 13
ARTICLE VII
Prohibition Against Sale; Encumbrances; Indemnification
Section 7.1. Prohibition Against Sale of Minimum Improvements 14
Section 7.2. Limitation Upon Encumbrance of Development Property 14
Section 7.3. Release and Indemnification Covenants 14
ARTICLE VIII
Events of Default
Section 8.1. Events of Default Defined 15
Section 8.2. Remedies on Default 16
Section 8.3. Revesting Interest in the Authority Upon Happening of Event of Default
Subsequent to Conveyance to Developer 16
Section 8.4 Resale of Reacquired Development Property; Disposition of Proceeds 17
Section 8.5. No Remedy Exclusive 18
Section 8.6. No Additional Waiver Implied by One Waiver 18
ARTICLE IX
Additional Provisions
Section 9.1. Conflict of Interests; Representatives Not Individually Liable 19
Section 9.2. Equal Employment Opportunity 19
Section 9.3. Restrictions on Use 19
Section 9.4. Provisions Not Merged With Deed; No Merger of Representations, Warranties 19
Section 9.5. Notices and Demands 19
Section 9.6. Counterparts 20
Section 9.7. Disclaimer of Relationships 20
Section 9.8. Release of Claims 20
Section 9.9. Modification and Waiver 20
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PAGE
Section 9.10. Restrictions on Use 20
Section 9.11. Titles of Articles and Sections 20
Section 9.12. Attorney Fees 21
Section 9.13. Choice of Law and Venue; Interpretation 21
Section 9.14. Entire Agreement 21
Section 9.15. No Broker 21
Section 9.16. Specific Performance 21
Section 9.17. Additional Documents. 21
TESTIMONIUM 22
SIGNATURES 22-23
EXHIBIT A LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY
EXHIBIT B FORM OF QUIT CLAIM DEED
EXHIBIT C LIST OF PRELIMINARY PLAN DOCUMENTS
EXHIBIT D FORM OF CERTIFICATE OF COMPLETION AND RELEASE OF
FORFEITURE
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PURCHASE AND DEVELOPMENT AGREEMENT
THIS AGREEMENT, made this _______ day of November, 2025, by and between the
Kenyon Economic Development Authority, a public body corporate and politic under the laws of
Minnesota, having its principal office at 709 Second Street, Kenyon, MN 55946 (the
“Authority”) and Firebird LLC, a Minnesota limited liability company, having its principal offices
at 202 North Cedar Avenue, Suite 1, Owatonna, MN 55060 (the “Developer”).
WITNESSETH:
WHEREAS, the Authority believes that the sale and development of land pursuant to this
Agreement and the fulfillment generally of this Agreement are in the vital and best interests of
Kenyon and the health, safety, morals, and welfare of its residents, and in accord with the public
purposes and provisions of the applicable state and local laws and requirements has been
undertaken.
NOW, THEREFORE, in consideration of the covenants and the mutual obligations
contained herein, the Authority and the Developer hereby covenant and agree with the other as
follows:
ARTICLE I
Definitions
Section 1.1. Definitions. In this Agreement, the following terms shall have the meanings
given unless a different meaning clearly appears from the context:
“Act” means the Authority Development Districts Act, Minnesota Statutes, sections
469.124 through 469.134, as amended.
“Agreement” means this Agreement, as the same may be from time to time modified,
amended, or supplemented.
“Authority” means the Kenyon Economic Development Authority.
“Certificate of Completion and Release of Forfeiture” means the certificate, in the form
contained in Exhibit D attached hereto, which will be provided to the Developer pursuant to
Article IV of this Agreement.
“City” means the city of Kenyon, a municipal corporation under the laws of Minnesota.
“Construction Plans” means the final plans for construction of the Minimum Improvements
to be submitted by the Developer and approved by the Authority.
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“County” means Goodhue County, Minnesota.
“Date of Closing” means the date set forth in Section 3.7 of this Agreement or the actual
date upon which the conveyance of the Development Property closes.
“Developer” means Firebird LLC, a Minnesota limited liability company.
“Development Property” means the real property upon which the Minimum Improvements
will be constructed, which property is legally described in Exhibit A attached hereto.
“Development Property Deed” means the quit claim deed in the form attached hereto as
Exhibit B, by which the Authority will convey the Development Property to the Developer.
“EDA Act” or “Economic Development Authority Act” means Minnesota Statutes,
sections 469.090 through 469.1081, as amended.
“Event of Default” means an action by the Developer or the Authority listed in Article IX
of this Agreement.
“Minimum Improvements” means devoting the Development Property to its intended Use
and construction of approximately a _________20,000 square foot building and facilities for use as
a cannabis cultivation microbusiness and cannabis transportation business as identified and set
forth in Exhibit C and constructed in accordance with the Construction Plans submitted to and
approved by the Authority. After completion of the Minimum Improvements, the term shall mean
the Development Property as improved by the Minimum Improvements.
“Minimum Market Value” means a market value for real estate tax purposes of at least
$_______________1,000,000 with respect to the Development Property and Minimum
Improvements as of ____________, 2026, for taxes payable beginning in 2027.
“Preliminary Plans” means, collectively, the plans, drawings and specifications for the
construction of the Minimum Improvements which are listed on Exhibit C attached hereto.
“Sale” means any sale, conveyance, lease, exchange, forfeiture, or other transfer of the
Developer's interest in the Minimum Improvements or the Development Property, whether
voluntary or involuntary. A mortgage used to finance the purchase of the Development Property is
excluded as a Sale.
“State” means the state of Minnesota.
“Termination Date” means one year from the Date of Closing or the date of the Certificate
of Completion issued by the Authority, whichever comes first.
“Unavoidable Delays” means delays which are the direct result of unanticipated adverse
weather conditions; strikes or other labor troubles; fire or other casualty to the Minimum
Improvements; litigation commenced by third parties which, by injunction or other similar judicial
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action, directly results in delays; or, except those of the Authority reasonably contemplated by this
Agreement, any acts or omissions of any federal, State or local governmental unit which directly
result in delays in construction of the Minimum Improvements.
“Use” means the Developer devoting the Development Property to its intended use, with
such use including, but not limited to, a cannabis cultivation microbusiness and cannabis
transportation business, or to any or all lawful business operations, with applicable or appropriate
licenses obtained, if needed.
Section 1.2. Exhibits. The following exhibits are attached to and by reference made a part
of this Agreement:
Exhibit A. Legal description of the Development Property
Exhibit B. Form of Quit Claim Deed
Exhibit C. List of Preliminary Plan Documents
Exhibit D. Form of Certificate of Completion and Release of Forfeiture
Section 1.3. Rules of Interpretation. (a) This Agreement shall be interpreted in accordance
with and governed by the laws of Minnesota.
(b) The words “herein” and “hereof” and words of similar import, without reference to
any particular section or subdivision, refer to this Agreement as a whole rather than any particular
section or subdivision hereof.
(c) References herein to any particular section or subdivision hereof are to the section
or subdivision of this Agreement as originally executed.
(d) Any titles of the several parts, articles and sections of this Agreement are inserted
for convenience and reference only and shall be disregarded in construing or interpreting any of its
provisions.
Section 1.4. Incorporation of Recitals and Exhibits. The Recitals set forth in the
preamble to this Agreement and the Exhibits attached to this Agreement are incorporated into
this Agreement as if fully set forth herein.
ARTICLE II
Representations and Warranties
Section 2.1. Representations by the Authority. The Authority makes the following
representations as the basis for the undertakings on its part herein contained:
(a) The Authority is a public body corporate and politic under the laws of Minnesota.
The Authority has the power to enter into this Agreement and carry out its obligations hereunder.
3
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(b) The persons executing this Agreement and related agreements and documents on
behalf of the Authority have the authority to do so and to bind the Authority by their actions.
(c) The Authority has received no notice or communication from any local, State or
federal official that the activities of the Developer or the Authority in the Development District
may be or will be in violation of any environmental law or regulation. The Authority is aware of
no facts the existence of which would cause it to be in violation of any local, State or federal
environmental law, regulation or review procedure.
Section 2.2. Representations and Warranties by the Developer. The Developer makes the
following representations as the basis for the undertakings on its part herein contained:
(a) The Developer is a limited liability company, duly organized and in good standing
under the laws of Minnesota and is not in violation of any provisions of its articles of incorporation
or by-laws. The Developer has the power to enter into this Agreement and carry out its obligations
hereunder. The persons executing this Agreement and related agreements and documents on
behalf of the Developer have the authority to do so and to bind the Developer by their actions.
(b) In the event the Development Property is conveyed to the Developer, the
Developer, or assigns, will construct, operate and maintain the Minimum Improvements on the
Development Property in substantial accordance with the terms of this Agreement, the
Construction Plans and all local, State and federal laws and regulations, including, but not limited
to, environmental, zoning, building code and public health laws regulations.
(c) The Developer will apply for and use its best efforts to obtain, in a timely manner,
all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of
all applicable local, State and federal laws and regulations which must be obtained or met before
the Minimum Improvements may be lawfully constructed or used for their intended purpose.
(d) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the
terms, conditions or provisions or any restriction or any evidence of indebtedness, agreement or
instrument of whatever nature to which the Developer is now a party or by which it is bound, or
constitutes a default under any of the foregoing.
(e) The Developer represents that there is no business subsidy provided by the
Authority because the Developer is purchasing the Development Property at fair market value.
Section 2.3. Representations Ongoing. The representations and warranties set forth in this
Article II shall be continuing and shall be true and correct as of the Date of Closing with the same
force and effect as if made at that time. All such representations and warranties shall survive
closing and shall not be merged in the delivery and execution of the deed or other instruments of
conveyance called for in this Agreement.
ARTICLE III
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Conveyance of Development Property
Section 3.1. Conveyance of the Development Property. In order to facilitate the financial
feasibility of the development of the Development Property and in consideration of the Developer's
fulfillment of its covenants and obligations under this Agreement to construct the Minimum
Improvements, and subject to the conditions precedent to closing outlined in Section 3.5 and the
contingencies to Closing outlined in Section 3.6 of this Agreement, the Authority agrees to sell the
Development Property to the Developer for Two Hundred Twelve Thousand Dollars and 00/100
($212,000.00).
The Developer has paidwill pay to the Authority on or before ________, __________, 2025,within
ten (10) days of execution of this Agreement earnest money in the amount of $20,000.00 which
shall be credited to the Developer at the time of closing. The Authority agrees to convey title and
possession of the Development Property to the Developer by quit claim deed in the form attached
hereto as Exhibit B. The conveyance of the Development Property and the Developer's use of the
Development Property shall be subject to all of the conditions, covenants, restrictions and
limitations imposed by this Agreement and the Development Property Deed. The conveyance of
title to the Development Property and the Developer's use of the Development Property shall also
be subject to the building and zoning laws and ordinances and all other City, State and federal laws
and regulation, easements and rights of way.
Section 3.2. Condition of Title. Within fourteen (14) days of the date of this Agreement,
the Authority agrees to submit to the Developer a commitment for title insurance regarding the
Development Property. The Developer shall have twenty (20) days after delivery of the
commitment to examine same and to make any objections concerning the condition of title
regarding the Development Property. Objections to the condition of title shall be made in writing
and addressed to the Authority. Failure on the part of the Developer to make objections within
twenty (20) days shall constitute a waiver of same and of the Developer’s right to object to the
condition of title. If the Developer provides written objections to title, the Authority shall have
forty-five (45) days thereafter to cure the defects cited by the Developer or to inform the Developer
in writing that the Authority cannot or will not cure said defects. If there are no defects in title to
which the Developer objects in writing or the Developer fails to object in a timely manner or if the
Authority cures the defects within the prescribed period, the parties will proceed to closing. If
there are defects in title to which the Developer has objected in a timely manner and which the
Authority cannot or will not cure, the Developer may terminate this Agreement at its option within
ten (10) days of notice from the Authority of its inability or unwillingness to cure. The Authority
shall have no obligation to cure any defects in the title of the Development Property. If the
Developer chooses to terminate this Agreement pursuant to this Section 3.2, the Developer agrees
to execute a quit claim deed regarding the Development Property in favor of the Authority and the
Authority shall refund to the Developer all earnest money and deposits received. Thereafter the
parties shall have no further obligation towards one another with regard to this Agreement or the
Development Property. The Developer may also choose to proceed to closing on the Development
Property and take title subject to the defect. Notwithstanding any other provision herein to the
contrary, if the Developer proceeds to closing within less than the time periods set forth herein for
receipt of a commitment for title insurance and objection to title defects, such action shall be
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deemed to be a waiver by the Developer of its right to examine and object to the condition of title
of the Development Property.
Section. 3.3. Financing. Before conveyance of the Development Property by the
Authority, the Developer agrees to submit to the Authority evidence of a commitment for financing
which is adequate, in the Authority’s sole opinion, for the construction of the Minimum
Improvements. If the Authority finds that the financing complies with the terms of this Section 3.3
and is sufficiently committed and adequate in amount to provide for the construction of the
Minimum Improvements, the Authority shall notify the Developer in writing of its approval. Such
approval shall not be unreasonably withheld. If the Authority rejects the evidence of financing as
inadequate, it shall do so in writing specifying the basis for the rejection and the Developer shall
have 30 days thereafter to submit a commitment for additional or alternate financing acceptable to
the Authority. If the Developer fails to submit a commitment for financing acceptable to the
Authority within said period of time or any additional period to which the Authority may agree, the
Authority may notify the Developer of its failure to comply with the requirement of this Section 3.3
and may terminate this Agreement at its sole discretion.
Section 3.4. Representations.
(a) The Authority makes the following representations and disclosures regarding the
Development Property:
1. The Authority represents that water and sanitary sewer hook-ups exist or are
available to the Development Property.
2. The Authority represents that primary electric distribution infrastructure is installed
and is available to the Development Property.
3. The Authority represents that it has surveyed and platted the Development Property.
The plat of KENYON BUSINESS PARK identifying the property lines for the
Development Property is available to the Developer upon request.
The Developer has thirty (30) days to review the documents noted above in this
Section 3.4(a) and to make any objections, or any objections shall be deemed waived.
(b) Other than as represented herein by the Authority, the Developer acknowledges that
the Authority makes no representations or warranties as to the condition of the soils on the
Development Property or its fitness for its intended use and for construction of the Minimum
Improvements or any other purpose for which the Developer may make use of such property.
(c) After execution of this Agreement and within thirtysixty (3060) days thereafter, the
Developer may notify the Authority of its desire to undertake tests and inspections of the
Development Property regarding the presence of pollution, contamination or hazardous substances
on the Development Property and the suitability of the soils for the Developer’s intended purposes.
The Developer, and person or persons selected by Developer shall be permitted access to the
Development Property for the purpose of conducting such studies and investigations of the
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Development Property as Developer deems appropriate, which studies and investigations shall be
conducted at Developer's sole expense and pursuant to any other terms and conditions of this
Agreement. Developer agrees to indemnify the Authority against any liability, cost or expense
incurred by the Authority as a result of Developer's actions, including but not limited to fines, court
costs, reasonable attorneys' fees and remedial costs. Such studies may include without limitation,
physically inspecting the Development Property, conducting soil tests, and reviewing the
Authority's records concerning the Development Property which records shall be made reasonably
available to Developer within ten (10) days after execution of this Agreement, including prior
studies, investigations and surveys, if any, in the Authority’s possession.
(d) Other than as represented herein by the Authority, the Developer acquires the
Development Property "as is." After execution of this Agreement and within thirtysixty (3060)
days thereafter, the Developer may notify the Authority of its desire to undertake tests and
inspections of the Development Property regarding the presence of pollution, contamination or
hazardous substances on the Development Property and the suitability of the soils for the
Developer’s intended purposes, which studies and investigations shall be conducted at Developer's
sole expense and pursuant to any other terms and conditions of this Agreement. In the event that
the Developer, following such tests and inspections, determines in its sole judgment that the
condition of the Development Property is unsuitable for its intended use and for construction of the
Minimum Improvements, the Developer may terminate this Agreement and return the
Development Property to its condition prior to undertaking such tests and inspections. Regardless
of whether the Developer avails itself of the right to conduct tests and inspections on the
Development Property pursuant to this Section 3.4, after closing the Authority shall have no
obligation or liability to the Developer for any unsuitability with respect to the soil conditions or
the presence of any pollution, contamination or hazardous substances on the Development
Property. Notwithstanding any other provision herein to the contrary, if the Developer proceeds to
closing within less than the period of time allowed in this Section 3.4 for testing, such action shall
be deemed to be a waiver by the Developer of its right to test on the Development Property. If
before sixty (60) days the Developer does not choose to proceed to closing, all earnest monies will
be returned.
(e) The Authority does not know of any wells on the Development Property, and will
so certify in the deed conveying the Development Property to the Developer.
Section 3.5. Conditions Precedent to Conveyance. Notwithstanding anything herein to the
contrary, the Authority shall not be obligated to convey the Development Property to the Developer
until the following conditions precedent have been satisfied:
(a) The Developer has submitted a commitment or other evidence of financing which is
adequate, in the Authority’s sole discretion, to fully finance construction of the Minimum
Improvements;
(b) The Developer has submitted and the Authority has approved the Construction
Plans;
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(c) The Authority has held a public hearing and fulfilled all requirements of Minnesota
Statutes, Section 469.105;
(d) There has been no Event of Default on the part of the Developer which has not been
cured;
(e) All of the above condition precedents shall occur within the time frame established
in Section 3.7 of this Agreement, unless extended by the Developer and the Authority. If such
extension is not obtained, all earnest money and deposits shall be returned to the Developer within
ten (10) days thereafter.
Section 3.6. Intentionally Omitted.
Section 3.7. Closing; Delivery and Recording. (a) Subject to the substantial satisfaction of
all of the terms and conditions contained in this Agreement which must be satisfied prior to the
Authority's conveyance of the Development Property to the Developer, the Authority shall execute
and deliver the Development Property Deed to the Developer at closing. Closing shall occur on the
Date of Closing which shall be the earlier of _________________, 2025occur within sixty (60)
days of execution of this Agreement, or as soon thereafter as reasonably practicable, or as
determined by the parties. The Developer shall have possession of the Development Property upon
the Date of Closing. Closing shall be at the offices of the City, 709 Second Street, Kenyon, MN
55946 or such other location to which the parties may agree. Prior to closing, the Authority shall
submit to the Developer a copy of the Development Property Deed and other closing documents
for review. The Development Property Deed shall be in recordable form and shall be recorded
among the County land records.
(b) On the Date of Closing, the Developer shall be responsible for and pay:
(1) the cost of recording the Development Property Deed and this Agreement;
(2) all fees associated with obtaining the commitment for title insurance and the
policy of title insurance;
(3) the cost of copies of all additional title documents necessary for the
examination of title;
(4) for any documents related to or in connection with the financing of the
Development Property, including but not limited to, recording fees and
mortgage registration tax;
(5) one-half of the title company closing fees, if any; and
(6) all of the Developers’ attorney’s fees.
(c) On the Date of Closing, the Authority shall be responsible for and pay:
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(1) transfer taxes, including State deed tax, to allow the Developer to record the
Development Property Deed;
(2) costs of recording any instruments used to clear title encumbrances;
(3) one-half of the title company closing fees, if any; and
(4) all of the Authority’s attorney’s fees.
(d) On the Date of Closing, the following costs will be paid on a pro rata basis in the
year of closing between the Authority and the Developer:
(1) utilities furnished to the Development Property, if any; and
(2) real estate taxes and special assessments, if any.
Section 3.8. Attorney Costs. The Developer shall pay its own costs to prepare and review
this Agreement and any other legal fees associated with the Development Property that are the
responsibility of the Developer. The Authority shall pay its own costs to prepare and review this
Agreement and any other legal fees associated with the Development Property that are the
responsibility of the Authority.
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will
construct the Minimum Improvements on the Development Property in accordance with the
Construction Plans and at all times prior to the Termination Date will devote the Development
Property to its intended Use and maintain, preserve and keep the Minimum Improvements or cause
the Minimum Improvements to be maintained, preserved and kept in good repair and condition.
The Developer recognizes that it is because the Developer has agreed to devote the Development
Property to its intended Use and to construct the Minimum Improvements that the Authority is
willing to sell the Development Property to the Developer. The Developer acknowledges that, in
addition to the requirements of this Agreement, construction of the Minimum Improvements will
necessitate compliance with other reviews and approvals by the Authority and possibly other
governmental agencies and review board of the Business Park and agrees to submit all applications
for and pursue to their conclusion all other approvals needed prior to constructing the Minimum
Improvements.
Section 4.2. Construction Plans. (a) Within sevensixty (760) days after execution of this
Agreement, the Developer shall submit dated Construction Plans to the Authority. The
Construction Plans shall provide for the construction of the Minimum Improvements and shall be
in substantial conformity with the Preliminary Plans and this Agreement. The Authority will
approve the Construction Plans if they (1) conform to the Preliminary Plans listed in Exhibit C
attached hereto; (2) conform to all applicable federal, State and local laws, ordinances, rules and
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regulations; (3) are adequate to provide for the construction of the Minimum Improvements; (4)
conform to the State building code; (5) if there has occurred no uncured Event of Default on the
part of the Developer. No approval by the Authority shall relieve the Developer of the obligation
to comply with the terms of this Agreement, the terms of any applicable federal, State and local
laws, ordinances, rules and regulations in the construction of the Minimum Improvements. No
approval by the Authority shall constitute a waiver of an Event of Default.
(b) If the Developer desires to make any change in the Construction Plans after their
approval by the Authority, including any change to the design or materials of the Minimum
Improvements or any other change which would also require review or reapproval under any
applicable code, ordinance or regulation, the Developer shall submit the proposed change to the
Authority for its approval. If the proposed change conforms to the requirements of this section 4.2
with respect to the original Construction Plans or is otherwise acceptable to the Authority, the
Authority shall approve the proposed change. Such change in the Construction Plans shall be
deemed approved by the Authority unless rejected, in whole or in part, by written notice by the
Authority to the Developer, setting forth in detail the reasons therefor. Such rejection shall be
made within ten (10) days after receipt of the written notice of such change from the Developer.
Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Developer shall commence construction of the Minimum Improvements no later than
thirtysixty (3060) days from the Date of Closing. Subject to Unavoidable Delays, the Developer
shall have substantially completed the construction of the Minimum Improvements no later than
twelve (12) months from the Date of Closing. All work with respect to the Minimum
Improvements to be constructed or provided by the Developer on the Development Property shall
be in conformity with the Construction Plans. The Developer shall make such reports to the
Authority regarding construction of the Minimum Improvements as the Authority deems necessary
or helpful in order to monitor progress on construction of the Minimum Improvements.
Section 4.4. Certificate of Completion and Release of Forfeiture. (a) After substantial
completion of the Minimum Improvements in accordance with the Construction Plans and all
terms of this Agreement, the Authority will furnish the Developer with a Certificate of Completion
and Release of Forfeiture in the form of Exhibit D hereto. Such certification by the Authority shall
be a conclusive determination of satisfaction and termination of the agreements and covenants in
this Agreement and in the Development Property Deed with respect to the obligations of the
Developer to construct the Minimum Improvements and the dates for the beginning and
completion thereof. The Certificate of Completion and Release of Forfeiture shall only be issued
after issuance of a certificate of occupancy by the City.
(b) The Certificate of Completion and Release of Forfeiture provided for in this
section 4.4 shall be in such form as will enable it to be recorded in the proper County office for the
recordation of deeds and other instruments pertaining to the Development Property. If the
Authority shall refuse or fail to provide such certification in accordance with the provisions of this
section 4.4, the Authority shall, within thirty (30) days after written request by the Developer,
provide the Developer with a written statement, indicating in adequate detail in what respects the
Developer has failed to complete the Minimum Improvements in accordance with the provisions of
the Agreement, or is otherwise in default of a material term of this Agreement, and what measures
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or acts will be necessary, in the opinion of the Authority, for the Developer to take or perform in
order to obtain such certification.
Section 4.5. Reconstruction of Improvements. If the Minimum Improvements are
damaged or destroyed before or after completion thereof and issuance of a Certificate of
Completion and Release of Forfeiture, but before the Termination Date, the Developer agrees, for
itself and its successors and assigns, to reconstruct the Minimum Improvements to a value at least
equal to the Minimum Market Value within one year of the date of the damage or destruction. No
delay or failure by the Developer or any successor or assign to reconstruct the Minimum
Improvements as required by this Section 4.5 shall alter or limit the Developer’s obligations under
this Agreement, which shall remain in full force and effect until the Termination Date. The
Minimum Improvements shall be reconstructed in accordance with the approved Construction
Plans, or such modifications thereto as may be requested by the Developer and approved by the
Authority in accordance with Section 4.2 of this Agreement. The Developer’s obligation to
reconstruct the Minimum Improvements pursuant to this Section 4.5 shall end on the Termination
Date.
ARTICLE V
Insurance
Section 5.1. Required Insurance. (a) The Developer agrees to provide and maintain at all
times during the process of constructing the Minimum Improvements and, from time to time at the
request of the Authority, furnish the Authority with proof of payment of premiums on:
(i) Builder's risk insurance, written on the so-called “Builder's Risk -- Completed
Value Basis,” in an amount equal to one hundred percent (100%) of the insurable value of
the Minimum Improvements at the date of completion, and with coverage available in
non-reporting form on the so-called “all risk” form of policy;
(ii) Comprehensive general liability insurance (including operations, contingent
liability, operations of subcontractors, completed operations and contractual liability
insurance) together with an Owner's Contractor's Policy with limits against bodily injury
and property damage of not less than $1,000,000 for each occurrence (to accomplish the
above required limits, an umbrella excess liability policy may be used); and
(iii) Workers' compensation insurance, with statutory coverage.
The policies of insurance required pursuant to clauses (i) and (ii) above shall be in form and
content reasonably satisfactory to the Authority and shall be placed with financially sound and
reputable insurers licensed to transact business in Minnesota. The policy of insurance delivered
pursuant to clause (i) above shall contain an agreement of the insurer to give not less than sixty
(60) days' advance written notice to the Authority in the event of cancellation of such policy or
change affecting the coverage thereunder.
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(b) Upon completion of construction of the Minimum Improvements, and prior to the
Termination Date, the Developer shall maintain, or cause to be maintained, at its cost and expense,
and from time to time at the request of the Authority shall furnish proof of the payment of
premiums on, insurance as follows:
(i) Insurance against loss and/or damage to the Minimum Improvements under a policy
or policies covering such risks as are ordinarily insured against by similar businesses,
including (without limiting the generality of the foregoing) fire, extended coverage,
vandalism and malicious mischief, heating system explosion, water damage, demolition
cost, debris removal, collapse and flood, in an amount not less than the full insurable
replacement value of the Minimum Improvements or the Minimum Market Value,
whichever is greater. No policy of insurance shall be so written that the proceeds thereof
will produce less than the minimum coverage required by the preceding sentence, by reason
of coinsurance provisions or otherwise, without the prior consent thereto in writing by the
Authority. The term “full insurable replacement value” shall mean the actual replacement
cost of the Minimum Improvements and shall be determined from time to time at the
request of the Authority, but not more frequently than once every three years, by an
insurance consultant or insurer, selected and paid for by the Developer and approved by the
Authority; and
(ii) Such other insurance, including worker's compensation insurance respecting all
employees of the Developer, in such amount as is customarily carried by like organizations
engaged in like activities of comparable size and liability exposure; provided that the
Developer may be self-insured with respect to all or any part of its liability for worker's
compensation.
Section 5.2. Evidence of Insurance. All insurance required in this Article V shall be taken
out and maintained in responsible insurance companies selected by the Developer which are
authorized under the laws of Minnesota to assume the risks covered thereby. The Developer agrees
to deposit annually with the Authority copies of policies evidencing all such insurance, or a
certificate or certificates or binders of the respective insurers stating that such insurance is in force
and effect. Unless otherwise provided in this Article V, each policy shall contain a provision that
the insurer shall not cancel nor materially modify it without giving written notice to the Developer
and the Authority at least sixty (60) days before the cancellation or modification becomes effective
(ten (10) days for non-payment of premium). Not less than fifteen (15) days prior to the expiration
of any policy, the Developer shall furnish the Authority evidence satisfactory to the Authority that
the policy has been renewed or replaced by another policy conforming to the provisions of this
Article V, or that there is no necessity therefor under the terms of this Agreement. In lieu of
separate policies, the Developer may maintain a single policy, blanket or umbrella policies, or a
combination thereof, having the coverage required herein, in which event the Developer shall
deposit with the Authority a certificate or certificates of the respective insurers as to the amount of
coverage in force upon the Minimum Improvements.
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ARTICLE VI
Collection of Taxes
Section 6.1. Taxes. The Developer agrees that prior to the Termination Date: (1) it will not
seek administrative or judicial review of the applicability of any tax statute determined by any Tax
Official to be applicable to the Minimum Improvements or the Development Property or raise the
inapplicability of any such tax statute as a defense in any proceedings, including delinquent tax
proceedings; (2) it will not seek administrative or judicial review of the constitutionality of any tax
statute determined by any Tax Official to be applicable to the Minimum Improvements or the
Development Property or raise the unconstitutionality of any such tax statute as a defense in any
proceedings, including delinquent tax proceedings; (3) it will not cause a reduction in the
Minimum Market Value paid in respect of the Minimum Improvements through:
(a) willful destruction of the Minimum Improvements or any part thereof;
(b) willful refusal to reconstruct damaged or destroyed property pursuant to section 4.5
of this Agreement;
(c) a request to the County assessor to reduce the Minimum Market Value of all or any
portion of the Minimum Improvements;
(d) a petition to the board of equalization of the County to reduce the Minimum Market
Value of all or any portion of the Development Property;
(e) a petition to the board of equalization of the State or the commissioner of revenue
of the State to reduce the Minimum Market Value of all or any portion of the Development
Property;
(f) an action in a district court of the State or the tax court of the State seeking a
reduction in the Minimum Market Value of the Development Property;
(g) an application to the commissioner of revenue of the State or to any local taxing
jurisdiction requesting an abatement of real property taxes;
(h) any other proceedings, whether administrative, legal or equitable, with any
administrative body within the County or the State or with any court of the State or the federal
government; or
(i) a transfer of the Development Property or Minimum Improvements, or any part
thereof, to an entity exempt from the payment of real property taxes under State law.
The Developer shall not, prior to the Termination Date, apply for a deferral of property tax on the
Development Property or the Minimum Improvements.
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Section 6.2. Right to Collect Delinquent Taxes. The Developer understands that the real
estate taxes on the Development Property and the Minimum Improvements must be promptly and
timely paid. To that end, the Developer agrees for itself, its successors and assigns, in addition to
the obligation pursuant to statute to pay real estate taxes, that the Developer is also obligated at all
times prior to the Termination Date by reason of this Agreement to pay before delinquency all real
estate taxes assessed against the Development Property and the Minimum Improvements. The
Developer acknowledges that at all times prior to the Termination Date this obligation creates a
contractual right on behalf of the Authority to sue the Developer or its successors and assigns to
collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a
tax payment to the County auditor. In any such suit, the Authority shall also be entitled to recover
its reasonable out-of-pocket costs, expenses and attorney fees.
ARTICLE VII
Prohibition Against Sale; Encumbrances; Indemnification
Section 7.1. Prohibition Against Sale of Minimum Improvements. The Developer
represents and agrees that its use of the Development Property and its other undertakings pursuant
to the Agreement, are, and will be, for the purpose of development of the Development Property
and not for speculation in land holding. The Developer further recognizes that in view of the
importance of the construction of the Minimum Improvements on the Development Property to the
general welfare of Kenyon, the fact that any act or transaction involving or resulting in a significant
change in the identity of the Developer is of particular concern to the Authority. The Developer
further recognizes that it is because of such qualifications and identity that the Authority is entering
into the Agreement with the Developer, and, in so doing, is further willing to accept and rely on the
obligations of the Developer for the faithful performance of all undertakings and covenants hereby
by it to be performed. For the foregoing reasons, the Developer represents and agrees that, prior to
the issuance of the Certificate of Completion and Release of Forfeiture, there shall be no Sale of
the Development Property or the Minimum Improvements by the Developer nor shall the
Developer suffer any such Sale to be made, without the prior written approval of the Authority.
Section 7.2. Limitation Upon Encumbrance of Development Property. Prior to the
issuance of the Certificate of Completion and Release of Forfeiture, the Developer agrees not to
engage in any financing creating any mortgage or other encumbrance or lien upon the Development
Property or the Minimum Improvements, whether by express agreement or operation of law, or
suffer any encumbrance or lien to be made on or attached to the Development Property or the
Minimum Improvements, other than the liens or encumbrances directly and solely related to the
purchase of the Development Property and the construction of the Minimum Improvements and
approved by the Authority, which approval shall not be withheld or delayed unreasonably if the
Authority determines that such lien or encumbrance will not threaten its security in the
Development Property or the Minimum Improvements.
Section 7.3. Release and Indemnification Covenants. (a) Except for any
misrepresentation or any willful or wanton misconduct or negligence of the Authority or the
governing body members, officers, agents, servants, consultants and employees thereof (the
“Indemnified Parties”), and except for any breach by the Indemnified Parties of their
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representative’s obligations under this Agreement, the Indemnified Parties shall not be liable for
and the Developer shall indemnify and hold harmless the Indemnified Parties against any loss or
damage to property or any injury to or death of any person (collectively, the “Claim”) occurring
at or about or resulting from any defect in the portion of the Development Property or the
Minimum Improvements owned by Developer at the time the Claim occurred.
(b) Except for any misrepresentation or any willful or wanton misconduct or
negligence of the Indemnified Parties, and except for any breach by any of the Indemnified
Parties of their representative’s obligations under this Agreement, the Developer agrees to
protect and defend the Indemnified Parties, now and forever, and further agrees to hold the
aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any
person or entity whatsoever arising from the acquisition, construction, installation, ownership,
maintenance and operation of the Development Property or the Minimum Improvements
(collectively, the “Claim”); provided, however, notwithstanding the foregoing, the Developer’s
indemnification and hold harmless shall apply only with regard to the portion of the
Development Property or Minimum Improvements owned by the Developer at the time the
Claim occurred.
(c) Except for any misrepresentation or any willful or wanton misconduct or
negligence of the Indemnified Parties, and except for any breach by any of the Indemnified
Parties of their representations and obligations under this Agreement, the Indemnified Parties
shall not be liable for any damage or injury to the persons or property of the Developer or its
officers, agents, servants or employees or any other person who may be about the Development
Property or Minimum Improvements (collectively, the “Claims”) owned by the Developer at
the time of the Claim.
(d) All covenants, stipulations, promises, agreements and obligations of the Authority
contained herein shall be deemed to be the covenants, stipulations, promises, agreements and
obligations of such entities and not of any governing body member, officer, agent, servant or
employee of such entities in the individual capacity thereof.
ARTICLE VIII
Events of Default
Section 8.1. Events of Default Defined. Each and every one of the following shall be an
Event of Default under this Agreement:
(a) Failure by the Authority or the Developer to proceed to closing on the Development
Property after compliance with or the occurrence of all conditions precedent to closing;
(b) Failure by the Developer to commence and complete construction of the Minimum
Improvements pursuant to the terms, conditions and limitations of Article IV of this Agreement,
including the timing thereof, unless such failure is caused by an Unavoidable Delay;
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(c) Failure by the Developer to pay real estate taxes or special assessments on the
Development Property and Minimum Improvements as they become due;
(d) Appeal or challenge by the Developer or any party on its behalf of the Minimum
Market Value prior to the Termination Date;
(e) Use by the Developer or others of the Minimum Improvements for purposes other
than those contemplated and permitted by this Agreement, including failure to comply with
Sections 9.3 and 9.10 of this Agreement.
(f) Transfer or Sale of the Development Property or the Minimum Improvements or
any part thereof by the Developer in violation of Sections 6.1 or 7.1 of this Agreement and without
the prior written permission by the Authority;
(g) If the Developer shall file a petition in bankruptcy, or shall make an assignment for
the benefit of its creditors or shall consent to the appointment of a receiver; or
(h) Failure by either party to observe or perform any material covenant, condition,
obligation or agreement on its part to be observed or performed under this Agreement or the
Assessment Agreement;
Section 8.2. Remedies on Default. Whenever any Event of Default referred to in
Section 8.1 of this Agreement occurs, the non-defaulting party may take any one or more of the
following actions after providing 30 days written notice to the defaulting party of the Event of
Default, but only if the Event of Default has not been cured within said thirty days or, if the Event
of Default is by its nature incurable within 30 days, the defaulting party does not provide
assurances to the non-defaulting party reasonably satisfactory to the non-defaulting party that the
Event of Default will be cured and will be cured as soon as reasonably possible:
(a) Suspend its performance under this Agreement, including refusing to close on the
Development Property, until it receives assurances from the defaulting party, deemed adequate by
the non-defaulting party, that the defaulting party will cure its default and continue its performance
under this Agreement;
(b) Terminate or rescind this Agreement;
(c) If the default occurs prior to completion of the Minimum Improvements, the
Authority may withhold the Certificate of Completion and Release of Forfeiture;
(d) If the default occurs prior to issuance of the Certificate of Completion and Release
of Forfeiture, revest title in the name of the Authority pursuant to Section 8.3 of this Agreement;
(e) Take whatever action, including legal or administrative action, which may appear
necessary or desirable to the non-defaulting party to collect any payments due under this
Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of
the defaulting party under this Agreement; and
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(f) If the Developer’s default occurs prior to the Date of Closing, the Authority may
retain any and all earnest money paid by the Developer pursuant to Section 3.1 of this Agreement.
Section 8.3. Revesting Interest in the Authority Upon Happening of Event of Default
Subsequent to Conveyance to Developer. Pursuant to the requirements of Minnesota Statutes,
Section 469.105, subd. 6, in the event that subsequent to conveyance of the Development Property
to the Developer and prior to the issuance of a Certificate of Completion and Release of Forfeiture
for the Minimum Improvements:
(a) the Developer, subject to Unavoidable Delays, fails to begin construction of the
Minimum Improvements in conformity with this Agreement and such failure to begin construction
is not cured within 30 days after written notice from the Authority to the Developer to do so; or
(b) subject to Unavoidable Delays, the Developer, after commencement of the
construction of the Minimum Improvements, fails to carry out its obligations with respect to the
completion of construction of the Minimum Improvements (including the nature and the date for
the completion thereof), or abandons or substantially suspends construction work, and any such
failure, abandonment, or suspension shall not be cured, ended, or remedied within 30 days after
written demand from the Authority to the Developer to do so; or
(c) the Developer shall fail to pay real estate taxes or assessments on the Development
Property when due, or shall place thereon any encumbrance or lien unauthorized by this
Agreement, or shall suffer any levy or attachment to be made, or any materialmen's or mechanics'
lien, or any other unauthorized encumbrance or lien to attach, and such taxes or assessments shall
not have been paid, or the encumbrance or lien removed or discharged or provision satisfactory to
the Authority made for such payment, removal, or discharge, within 30 days after written demand
by the Authority to do so or such longer period, not to exceed 60 days, as may reasonably be
necessary to remove said lien or encumbrance; provided, that if the Developer shall first notify the
Authority of its intention to do so, it may in good faith contest any mechanics' or other lien to
remain undischarged and unsatisfied during the period of such contest and any appeal, but only if
the Developer provides the Authority with a bank letter of credit or other security in the amount of
the lien, in a form satisfactory to the Authority, pursuant to which the bank will pay to the
Authority the amount of any lien in the event the lien is finally determined to be valid or, as an
alternative to such forms of security, has made a deposit with the district court in the manner
provided in Minnesota Statutes, section 514.10. During the course of such contest, the Developer
shall keep the Authority informed respecting the status of such defense; or
(d) there is, in violation of Sections 6.1 or 7.1 of this Agreement, any transfer of the
Development Property to an entity exempt from payment of real estate taxes or any Sale of the
Development Property or the Minimum Improvements or any part thereof, and such violation shall
not be cured within 30 days after written demand by the Authority to the Developer;
Then the Authority shall have the right to re-enter and take possession of the Development
Property and to terminate and revest in the Authority the interest of the Developer in the
Development Property; provided, however, that any exercise by the Authority of its rights or
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remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or
limit in any way the lien of any mortgage or other encumbrance specifically and previously
authorized by the Authority in writing under this Agreement or any rights or interests provided in
this Agreement for the protection of the holders of an approved encumbrance.
Section 8.4. Resale of Reacquired Development Property; Disposition of Proceeds.
Upon the revesting in the Authority of title to and/or possession of the Development Property or
any part thereof as provided herein, the Authority shall, pursuant to its responsibilities under law,
use its best efforts to sell the Development Property or part thereof as soon and in such manner as
the Authority shall find feasible and consistent with the objectives of such law to a qualified and
responsible party or parties (as determined by the Authority) who will assume the obligation of
making or completing the Minimum Improvements or such other improvements in their stead as
shall be satisfactory to the Authority in accordance with the uses specified for such Development
Property or part thereof. During any time while the Authority has title to and/or possession of a
parcel obtained by reverter, the Authority will not disturb the rights of any owner of any housing
unit on such parcel. Upon resale of the Development Property, the proceeds thereof shall be
applied:
(a) First, to reimburse the Authority for all costs and expenses incurred by them,
including but not limited to salaries of personnel, in connection with the recapture, management,
and resale of the Development Property (but less any income derived by the Authority from the
property or part thereof in connection with such management); all taxes, assessments, and water
and sewer charges with respect to the Development Property or part thereof (or, in the event the
Development Property is exempt from taxation or assessment or such charge during the period of
ownership thereof by the Authority, an amount, if paid, equal to such taxes, assessments, or
charges (as determined by the Authority assessing official) as would have been payable if the
Development Property were not so exempt); any payments made or necessary to be made to
discharge any encumbrances or liens existing on the Development Property or part thereof at the
time of revesting of title thereto in the Authority or to discharge or prevent from attaching or being
made any subsequent encumbrances or liens due to obligations, defaults or acts of the Developer,
its successors or transferees; any expenditures made or obligations incurred with respect to the
making or completion of the subject improvements or any part thereof on the Development
Property or part thereof; and any amounts otherwise owing the Authority by the Developer and its
successor or transferee; and
(b) Second, to reimburse the Developer, its successor or transferee, up to the amount
equal to the amount actually invested by it in making any of the subject improvements on the
Development Property or part thereof.
(c) Any balance remaining after such reimbursements shall be retained by the Authority
as its property.
Section 8.5. No Remedy Exclusive. No remedy herein conferred upon or reserved to the
parties is intended to be exclusive of any other available remedy or remedies, but each and every
such remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to
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exercise any right or power accruing upon any default shall impair any such right or power or shall
be construed to be a waiver thereof, but any such right and power may be exercised from time to
time and as often as may be deemed expedient. In order to entitle the Authority or the Developer
to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice
as may be required in Article IX of this Agreement.
Section 8.6. No Additional Waiver Implied by One Waiver. In the event any covenant or
agreement contained in this Agreement should be breached by either party and thereafter waived by
the other party, such waiver shall be limited to the particular breach so waived and shall not be
deemed to waive any other concurrent, previous or subsequent breach hereunder.
ARTICLE IX
Additional Provisions
Section 9.1. Conflict of Interests; Representatives Not Individually Liable. No officer,
official, or employee of the Authority shall have any personal financial interest, direct or indirect,
in this Agreement, nor shall any such officer, official, or employee participate in any decision
relating to the Agreement which affects his or her personal financial interests, directly or indirectly.
No officer, official, or employee of the Authority shall be personally liable to the Developer, or any
successor in interest, in the event of any default or breach or for any amount which may become
due or on any obligation under the terms of this Agreement.
Section 9.2. Equal Employment Opportunity. The Developer, for itself and its successors
and assigns, agrees that during the construction of the Minimum Improvements provided for in this
Agreement, it will comply with all applicable equal employment and nondiscrimination laws and
regulations.
Section 9.3. Restrictions on Use. The Developer, for itself and its successors and assigns,
agrees to devote the Property and Minimum Improvements only to such land use or uses as may be
permissible under the City’s land use regulations. The Developer, for itself, its successors and
assigns, acknowledges the limitations on use of the Property and the Minimum Improvements
imposed by Section 469.105 of the EDA Act and agrees to comply with such restrictions.
Section 9.4. Provisions Not Merged With Deed; No Merger of Representations,
Warranties. None of the provisions, representations or warranties contained in this Agreement
are intended to be merged into any instruments of conveyance delivered at closing or shall be
merged by reason of delivery of the Development Property Deed, but instead shall survive closing,
and the parties shall be bound accordingly. The Development Property Deed shall not be deemed
to affect or impair the provisions and covenants of this Agreement.
Section 9.5. Notices and Demands. Except as otherwise expressly provided in this
Agreement, any notice, demand, or other communication under the Agreement or any related
document by either party to the other shall be sufficiently given or delivered if it is dispatched by
registered or certified United States mail, postage prepaid, return receipt requested, or delivered
personally to:
19
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(a) in the case of the Authority: 709 Second Street
Kenyon, MN 55946
Attn: Executive Director
(b) in the case of the Developer: Firebird LLC
202 North Cedar Avenue, Suite 1
Owatonna, MN 55060
Attn: Mark Jaurnek
or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section 9.5.
Section 9.6. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 9.7. Disclaimer of Relationships. The Developer acknowledges that nothing
contained in this Agreement nor any act by the Authority or the Developer shall be deemed or
construed by the Developer or by any third person to create any relationship of third-party
beneficiary, principal and agent, limited or general partner, or joint venture between the Authority
and the Developer.
Section 9.8. Release of Claims. The Developer and the Developer’s attorneys, agents,
employees, former employees, insurers, heirs, administrators, representatives, successors and
assigns, hereby releases and forever discharges the Authority, and its attorneys, agents,
representatives, employees, former employees, insurers, heirs, executors and assigns of and from
any and all past, present or future claims, demands, obligations, actions or causes of action, at
law or in equity, whether arising by statute, common law or otherwise, and for all claims for
damages, of whatever kind or nature, and for all claims for attorneys' fees, and costs and
expenses, including but not limited to all claims of any kind arising out of the negotiation,
Developer consideration, execution and performance of this Agreement between the parties.
Nothing contained in this paragraph 9.8. is intended to prevent the exercise of any rights
available pursuant to this Agreement.
Section 9.9. Modification and Waiver. No purported amendment, modification or waiver
of any provision of this Agreement shall be binding unless set forth in a written document signed
by both the Authority and the Developer (in the case of amendments or modifications) or by the
party to be charged thereby (in the case of waivers). Any waiver shall be limited to the
circumstance or event specifically referenced in the written waiver document and shall not be
deemed a waiver of any other term of this Agreement or of the same circumstance or event upon
any recurrence thereof.
Section 9.10. Restrictions on Use. The Developer agrees that prior to the issuance of the
Certificate of Completion and Release of Forfeiture, the Developer and its successors and
assigns: (a) shall use the Development Property solely for the purpose of constructing and
operating the Minimum Improvements pursuant to the terms of this Agreement and as defined by
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the definition of Use as set forth in this Agreement; (b) shall not discriminate upon the basis of
race, color, creed, sex, national origin, or any other classification prohibited by law in the lease,
rental, use or occupancy of any portion of the Minimum Improvements on the Development
Property or any improvements erected or to be erected thereon, or any part thereof; and (c) shall
otherwise comply with the restrictions on use set forth in this Agreement.
Section 9.11. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of this Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 9.12. Attorney Fees. Whenever any Event of Default occurs and if the Authority
shall employ attorneys or incur other expenses for the collection of payments due or to become
due, or for the enforcement of performance or observance of any obligation or agreement on the
part of the Developer under this Agreement, the Developer agrees that it shall, within ten days of
written demand by the Authority, pay to the Authority the reasonable fees of such attorneys and
such other expenses so incurred by the Authority.
Section 9.13. Choice of Law and Venue; Interpretation. This Agreement shall be
governed by, enforced and construed in accordance with the laws of the State of Minnesota. Any
disputes, controversies, or claims arising out of this Agreement shall be heard in the state or
federal courts of Minnesota, and all parties to this Agreement waive any objection to the
jurisdiction of these courts, whether based on convenience or otherwise.
Section 9.14. Entire Agreement. This Agreement constitutes the entire agreement
between the parties pertaining to its subject matter and it supersedes all prior contemporaneous
agreements, representations, and understandings of the parties pertaining to the subject matter of
this Agreement. This Agreement may be modified, amended, terminated, or waived, in whole or
in part, only by a writing signed by all of the parties.
Section 9.15. Broker. The Authority has engaged the services of a broker in connection
with the sale of the Development Property and the Authority will be solely responsible for the
costs of such broker and shall defend, indemnify and hold the Developer harmless from any
claims of such broker. The Developer represents that it has not engaged any real estate broker in
connection with the sale of the Development Property.
Section 9.16. Specific Performance. This Agreement may be specifically enforced by
the parties, provided that any action for specific enforcement is brought within six months after
the date of the alleged breach. This paragraph is not intended to create an exclusive remedy for
breach of this Agreement; the parties reserve all other remedies available at law or in equity.
Section 9.17. Additional Documents. The Authority and the Developer agree to
cooperate with the other and their representatives regarding any reasonable requests made
subsequent to the execution of this Agreement to correct any clerical errors in this Agreement
and to provide any and all additional documentation deemed necessary by either party to
effectuate the transaction contemplated by this Agreement.
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IN WITNESS WHEREOF, the Authority and the Developer have caused this Agreement to
be duly executed in their names and behalves on or as of the date first above written.
AUTHORITY:
KENYON ECONOMIC
DEVELOPMENT AUTHORITY
By: _________________________________
John Mortensen
President
By: _________________________________
Scott Lehner
Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF GOODHUE )
The foregoing instrument as acknowledged before me this _____ day of _________, 2025,
by John Mortensen and Scott Lehner, president and executive director, respectively, of the Kenyon
Economic Development Authority, a public body corporate and politic under the laws of
Minnesota, on behalf of the Kenyon Economic Development Authority.
____________________________________
Notary Public
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DEVELOPER:
Firebird LLC
By: ___________________________________
Mark Jaurnek
Its: ___________________________________
STATE OF MINNESOTAMICHIGAN )
) ss.
COUNTY OF _________ KALAMAZOO)
The foregoing instrument was executed this ____ day of _________, 2025, by Mark
Jaurnek, Developer.
__________________________________
Notary Public
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EXHIBIT A
LEGAL DESCRIPTION
The Development Property is located in Goodhue County, Minnesota, and is legally described as:
Lot 1, Block 3, KENYON BUSINESS PARK, Goodhue County, Minnesota.
PID No.: 66.435.0040
A-1
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EXHIBIT B
FORM OF QUIT CLAIM DEED
STATE DEED TAX DUE HEREON: $_______________699.60
Date: ________________, 2025.
THIS INDENTURE, between the Kenyon Economic Development Authority, a public
body corporate and politic, under the laws of the State of Minnesota, Grantor, and Firebird LLC,
a Minnesota limited liability company, Grantee.
WITNESSETH, that the Grantor, in consideration of the sum of Two Hundred Twelve
Thousand Dollars and 00/100 ($212,000.00) and other good and valuable consideration, the
receipt whereof is hereby acknowledged, does hereby grant, bargain, quit claim and convey to
the Grantee, its successors and assigns, forever, all of the tract or parcel of land lying and being
in the County of Scott and State of Minnesota described as follows:
Lot 1, Block 3, KENYON BUSINESS PARK, Goodhue County, Minnesota.
To have and to hold the same, together with all hereditaments and appurtenances
thereunto belonging or in any way appertaining, to the Grantee, its successors and assigns,
forever. Subject to and together with, however, the provisions of the Permitted Encumbrances
described and referred to in Exhibit A attached hereto and incorporated herein by reference,
including, without limitation, the right of the Grantor upon the happening of an Event of Default
under that certain Purchase and Development Agreement between Grantor and Grantee dated as
of _____________, 2025, to re-enter and take possession of the Development Property and the
improvements thereon and terminate the estate and all right, title and interest of the Grantee in
and to the Development Property and improvements thereon, and revest in the Grantor all right,
title, estate and interest of the Grantee in the Development Property and improvements thereon,
free of any lien of any mortgage and other liens, except as permitted pursuant to the provisions of
the Purchase and Development Agreement.
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IN WITNESS WHEREOF, the Grantor has caused this deed to be duly executed in its
behalf by its chairman and its executive director on _______________, 2025.
■ The Seller certifies that the seller does not know of any wells on the described real property.
A well disclosure certificate accompanies this document.
I am familiar with the property described in this instrument and I certify that the status and
number of wells on the described real property have not changed since the last previously
filed well disclosure certificate.
KENYON ECONOMIC DEVELOPMENT
AUTHORITY
By:
John Mortensen
President
By:
Scott Lehner
Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ______ day of
____________, 2025, by John Mortensen and Scott Lehner, the president and executive director,
respectively, of the Kenyon Economic Development Authority, a public body corporate and
politic under the laws of Minnesota, on behalf of the Kenyon Economic Development Authority.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Kennedy & Graven, Chartered (SJR)
150 South Fifth Stret, Suite 700
Minneapolis MN 55402
(612) 337-9300
Property Tax Statements for the Property described in this instrument should be sent to:
Firebird LLC
202 North Cedar Avenue, Suite 1
Owatonna, MN 55060
B-2
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EXHIBIT A TO
QUIT CLAIM DEED
Permitted Encumbrances
1. Taxes and installments of special assessments payable in 2026 and in subsequent years.
2. Building and zoning laws; federal, state and local laws, ordinances and regulations.
3. Easements for public streets, drainage, utilities, highways and roads now existing.
4. The terms, conditions, covenants and agreements set forth in the Purchase and
Development Agreement between the Grantor and Grantee named in the Deed to which
this Exhibit is attached, which Purchase and Development Agreement is hereby made a
part hereof by reference thereto.
5. Mortgage used to finance the purchase of the Development Property.
B-3
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EXHIBIT C
LIST OF PRELIMINARY PLAN DOCUMENTS
The Minimum Improvements shall be constructed in accordance with the following preliminary
plan documents:
The Preliminary Plan Documents are on file in the office of the Kenyon City Administrator at City
Hall.
[To Be Submitted]
C-1
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EXHIBIT D
FORM OF
CERTIFICATE OF COMPLETION
AND RELEASE OF FORFEITURE
WHEREAS, the Kenyon Economic Development Authority (the “Grantor”), by a deed
recorded in the office of the County Recorder in Goodhue County, Minnesota, as Document No.
__________, has conveyed to Firebird LLC, a Minnesota limited liability company (the
“Grantee”), the following described land in County of Goodhue and State of Minnesota, to-wit:
Lot 1, Block 3 KENYON BUSINESS PARK, Goodhue County, Minnesota
and
WHEREAS, said deed was executed pursuant to that certain Purchase and Development
Agreement by and between the Grantor and the Grantee dated the ____ day of _______, 2025, and
recorded in the office of the County Recorder in Goodhue County, Minnesota, as Document No.
__________, which Purchase and Development Agreement contained certain covenants and
restrictions regarding completion of the Minimum Improvements; and
WHEREAS, said Grantee has performed said covenants and conditions in a manner
deemed sufficient by the Grantor to permit the execution and recording of this certification.
NOW, THEREFORE, this is to certify that all construction of the Minimum Improvements
specified to be done and made by the Grantee has been completed and the covenants and
conditions in the Purchase and Development Agreement have been performed by the Grantee
therein and that the provisions for forfeiture of title and right to re-entry for breach of condition
subsequent by Grantor is hereby released absolutely and forever, and the County Recorder in
ScottGoodhue County, Minnesota, is hereby authorized to accept for recording and to record the
filing of this instrument, to be a conclusive determination of the satisfactory termination of the
covenants and conditions relating to completion of the Minimum Improvements.
Dated: _______________, 202__. KENYON ECONOMIC DEVELOPMENT
AUTHORITY
By:
John Mortensen
President
By: ______________________________
Scott Lehner
Executive Director
D-1
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STATE OF MINNESOTA )
) ss.
COUNTY OF GOODHUE )
The foregoing instrument as acknowledged before me this _____ day of _________,
202__, by John Mortensen and Scott Lehner, the president and executive director, respectively, of
the Kenyon Economic Development Authority, a public body corporate and politic, on behalf of
the Kenyon Economic Development Authority.
____________________________________
Notary Public
D-2
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80
PURCHASE AND DEVELOPMENT AGREEMENT
By and Between
KENYON ECONOMIC DEVELOPMENT AUTHORITY
and
FIREBIRD LLC
This document drafted by:
KENNEDY & GRAVEN, CHARTERED (SJR)
150 South Fifth Street, Suite 700
Minneapolis, MN 55402
(612) 337-9300
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TABLE OF CONTENTS
PAGE
PREAMBLE .......................................................................................................................................... 1
ARTICLE I
Definitions
Section 1.1. Definitions .................................................................................................................... 1
Section 1.2. Exhibits ........................................................................................................................ 3
Section 1.3. Rules of Interpretation ................................................................................................. 3
Section 1.4. Incorporation of Recitals and Exhibits ....................................................................3
ARTICLE II
Representations and Warranties
Section 2.1. Representations by the Authority ................................................................................. 3
Section 2.2. Representations and Warranties by the Developer ...................................................... 4
Section 2.3 Representations Ongoing ............................................................................................. 4
ARTICLE III
Conveyance of Development Property
Section 3.1. Conveyance of the Development Property .................................................................. 5
Section 3.2. Condition of Title ......................................................................................................... 5
Section 3.3. Financing ...................................................................................................................... 6
Section 3.4. Representations............................................................................................................. 6
Section 3.5. Conditions Precedent to Conveyance........................................................................... 7
Section 3.6. Developer Contingencies ............................................................................................. 8
Section 3.7. Closing; Delivery and Recording ................................................................................ 8
Section 3.8 Attorney Costs……………………………………………………………………...9
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements.................................................................... 9
Section 4.2. Construction Plans ........................................................................................................ 9
Section 4.3. Commencement and Completion of Construction..................................................... 10
Section 4.4. Certificate of Completion and Release of Forfeiture ................................................. 10
Section 4.5. Reconstruction of Improvements ............................................................................... 11
i
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PAGE
ARTICLE V
Insurance
Section 5.1. Required Insurance ..................................................................................................... 11
Section 5.2 Evidence of Insurance ................................................................................................ 12
ARTICLE VI
Collection of Taxes
Section 6.1. Taxes ........................................................................................................................... 12
Section 6.2. Right to Collect Delinquent Taxes ............................................................................. 13
ARTICLE VII
Prohibition Against Sale; Encumbrances; Indemnification
Section 7.1. Prohibition Against Sale of Minimum Improvements ............................................... 14
Section 7.2. Limitation Upon Encumbrance of Development Property ........................................ 14
Section 7.3. Release and Indemnification Covenants .................................................................... 14
ARTICLE VIII
Events of Default
Section 8.1. Events of Default Defined .......................................................................................... 15
Section 8.2. Remedies on Default .................................................................................................. 16
Section 8.3. Revesting Interest in the Authority Upon Happening of Event of Default
Subsequent to Conveyance to Developer................................................................... 16
Section 8.4 Resale of Reacquired Development Property; Disposition of Proceeds ................... 17
Section 8.5. No Remedy Exclusive ................................................................................................ 18
Section 8.6. No Additional Waiver Implied by One Waiver ......................................................... 18
ARTICLE IX
Additional Provisions
Section 9.1. Conflict of Interests; Representatives Not Individually Liable ................................. 19
Section 9.2. Equal Employment Opportunity ................................................................................ 19
Section 9.3. Restrictions on Use ..................................................................................................... 19
Section 9.4. Provisions Not Merged With Deed; No Merger of Representations, Warranties ... 19
Section 9.5. Notices and Demands ................................................................................................. 19
Section 9.6. Counterparts................................................................................................................ 20
Section 9.7. Disclaimer of Relationships ....................................................................................... 20
Section 9.8. Release of Claims ....................................................................................................... 20
Section 9.9. Modification and Waiver............................................................................................ 20
ii
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PAGE
Section 9.10. Restrictions on Use ..................................................................................................... 20
Section 9.11. Titles of Articles and Sections.................................................................................... 20
Section 9.12. Attorney Fees .............................................................................................................. 21
Section 9.13. Choice of Law and Venue; Interpretation .................................................................. 21
Section 9.14. Entire Agreement........................................................................................................ 21
Section 9.15. No Broker ................................................................................................................... 21
Section 9.16. Specific Performance.................................................................................................. 21
Section 9.17. Additional Documents. ............................................................................................... 21
TESTIMONIUM ................................................................................................................................. 22
SIGNATURES ...............................................................................................................................22-23
EXHIBIT A LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY
EXHIBIT B FORM OF QUIT CLAIM DEED
EXHIBIT C LIST OF PRELIMINARY PLAN DOCUMENTS
EXHIBIT D FORM OF CERTIFICATE OF COMPLETION AND RELEASE OF
FORFEITURE
iii
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PURCHASE AND DEVELOPMENT AGREEMENT
THIS AGREEMENT, made this _______ day of November, 2025, by and between the
Kenyon Economic Development Authority, a public body corporate and politic under the laws of
Minnesota, having its principal office at 709 Second Street, Kenyon, MN 55946 (the
“Authority”) and Firebird LLC, a Minnesota limited liability company, having its principal offices
at 202 North Cedar Avenue, Suite 1, Owatonna, MN 55060 (the “Developer”).
WITNESSETH:
WHEREAS, the Authority believes that the sale and development of land pursuant to this
Agreement and the fulfillment generally of this Agreement are in the vital and best interests of
Kenyon and the health, safety, morals, and welfare of its residents, and in accord with the public
purposes and provisions of the applicable state and local laws and requirements has been
undertaken.
NOW, THEREFORE, in consideration of the covenants and the mutual obligations
contained herein, the Authority and the Developer hereby covenant and agree with the other as
follows:
ARTICLE I
Definitions
Section 1.1. Definitions. In this Agreement, the following terms shall have the meanings
given unless a different meaning clearly appears from the context:
“Act” means the Authority Development Districts Act, Minnesota Statutes, sections 469.124
through 469.134, as amended.
“Agreement” means this Agreement, as the same may be from time to time modified,
amended, or supplemented.
“Authority” means the Kenyon Economic Development Authority.
“Certificate of Completion and Release of Forfeiture” means the certificate, in the form
contained in Exhibit D attached hereto, which will be provided to the Developer pursuant to
Article IV of this Agreement.
“City” means the city of Kenyon, a municipal corporation under the laws of Minnesota.
“Construction Plans” means the final plans for construction of the Minimum Improvements
to be submitted by the Developer and approved by the Authority.
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“County” means Goodhue County, Minnesota.
“Date of Closing” means the date set forth in Section 3.7 of this Agreement or the actual
date upon which the conveyance of the Development Property closes.
“Developer” means Firebird LLC, a Minnesota limited liability company.
“Development Property” means the real property upon which the Minimum Improvements
will be constructed, which property is legally described in Exhibit A attached hereto.
“Development Property Deed” means the quit claim deed in the form attached hereto as
Exhibit B, by which the Authority will convey the Development Property to the Developer.
“EDA Act” or “Economic Development Authority Act” means Minnesota Statutes, sections
469.090 through 469.1081, as amended.
“Event of Default” means an action by the Developer or the Authority listed in Article IX of
this Agreement.
“Minimum Improvements” means devoting the Development Property to its intended Use
and construction of approximately a 20,000 square foot building and facilities for use as a cannabis
cultivation microbusiness and cannabis transportation business as identified and set forth in
Exhibit C and constructed in accordance with the Construction Plans submitted to and approved by
the Authority. After completion of the Minimum Improvements, the term shall mean the
Development Property as improved by the Minimum Improvements.
“Minimum Market Value” means a market value for real estate tax purposes of at least
$1,000,000 with respect to the Development Property and Minimum Improvements as of
____________, 2026, for taxes payable beginning in 2027.
“Preliminary Plans” means, collectively, the plans, drawings and specifications for the
construction of the Minimum Improvements which are listed on Exhibit C attached hereto.
“Sale” means any sale, conveyance, lease, exchange, forfeiture, or other transfer of the
Developer's interest in the Minimum Improvements or the Development Property, whether
voluntary or involuntary. A mortgage used to finance the purchase of the Development Property is
excluded as a Sale.
“State” means the state of Minnesota.
“Termination Date” means one year from the Date of Closing or the date of the Certificate
of Completion issued by the Authority, whichever comes first.
“Unavoidable Delays” means delays which are the direct result of unanticipated adverse
weather conditions; strikes or other labor troubles; fire or other casualty to the Minimum
Improvements; litigation commenced by third parties which, by injunction or other similar judicial
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action, directly results in delays; or, except those of the Authority reasonably contemplated by this
Agreement, any acts or omissions of any federal, State or local governmental unit which directly
result in delays in construction of the Minimum Improvements.
“Use” means the Developer devoting the Development Property to its intended use, with
such use including, but not limited to, a cannabis cultivation microbusiness and cannabis
transportation business, or to any or all lawful business operations, with applicable or appropriate
licenses obtained, if needed.
Section 1.2. Exhibits. The following exhibits are attached to and by reference made a part
of this Agreement:
Exhibit A. Legal description of the Development Property
Exhibit B. Form of Quit Claim Deed
Exhibit C. List of Preliminary Plan Documents
Exhibit D. Form of Certificate of Completion and Release of Forfeiture
Section 1.3. Rules of Interpretation. (a) This Agreement shall be interpreted in accordance
with and governed by the laws of Minnesota.
(b) The words “herein” and “hereof” and words of similar import, without reference to
any particular section or subdivision, refer to this Agreement as a whole rather than any particular
section or subdivision hereof.
(c) References herein to any particular section or subdivision hereof are to the section or
subdivision of this Agreement as originally executed.
(d) Any titles of the several parts, articles and sections of this Agreement are inserted for
convenience and reference only and shall be disregarded in construing or interpreting any of its
provisions.
Section 1.4. Incorporation of Recitals and Exhibits. The Recitals set forth in the
preamble to this Agreement and the Exhibits attached to this Agreement are incorporated into
this Agreement as if fully set forth herein.
ARTICLE II
Representations and Warranties
Section 2.1. Representations by the Authority. The Authority makes the following
representations as the basis for the undertakings on its part herein contained:
(a) The Authority is a public body corporate and politic under the laws of Minnesota.
The Authority has the power to enter into this Agreement and carry out its obligations hereunder.
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(b) The persons executing this Agreement and related agreements and documents on
behalf of the Authority have the authority to do so and to bind the Authority by their actions.
(c) The Authority has received no notice or communication from any local, State or
federal official that the activities of the Developer or the Authority in the Development District may
be or will be in violation of any environmental law or regulation. The Authority is aware of no facts
the existence of which would cause it to be in violation of any local, State or federal environmental
law, regulation or review procedure.
Section 2.2. Representations and Warranties by the Developer. The Developer makes the
following representations as the basis for the undertakings on its part herein contained:
(a) The Developer is a limited liability company, duly organized and in good standing
under the laws of Minnesota and is not in violation of any provisions of its articles of incorporation
or by-laws. The Developer has the power to enter into this Agreement and carry out its obligations
hereunder. The persons executing this Agreement and related agreements and documents on behalf
of the Developer have the authority to do so and to bind the Developer by their actions.
(b) In the event the Development Property is conveyed to the Developer, the Developer,
or assigns, will construct, operate and maintain the Minimum Improvements on the Development
Property in substantial accordance with the terms of this Agreement, the Construction Plans and all
local, State and federal laws and regulations, including, but not limited to, environmental, zoning,
building code and public health laws regulations.
(c) The Developer will apply for and use its best efforts to obtain, in a timely manner,
all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of
all applicable local, State and federal laws and regulations which must be obtained or met before the
Minimum Improvements may be lawfully constructed or used for their intended purpose.
(d) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the
terms, conditions or provisions or any restriction or any evidence of indebtedness, agreement or
instrument of whatever nature to which the Developer is now a party or by which it is bound, or
constitutes a default under any of the foregoing.
(e) The Developer represents that there is no business subsidy provided by the Authority
because the Developer is purchasing the Development Property at fair market value.
Section 2.3. Representations Ongoing. The representations and warranties set forth in this
Article II shall be continuing and shall be true and correct as of the Date of Closing with the same
force and effect as if made at that time. All such representations and warranties shall survive
closing and shall not be merged in the delivery and execution of the deed or other instruments of
conveyance called for in this Agreement.
ARTICLE III
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Conveyance of Development Property
Section 3.1. Conveyance of the Development Property. In order to facilitate the financial
feasibility of the development of the Development Property and in consideration of the Developer's
fulfillment of its covenants and obligations under this Agreement to construct the Minimum
Improvements, and subject to the conditions precedent to closing outlined in Section 3.5 and the
contingencies to Closing outlined in Section 3.6 of this Agreement, the Authority agrees to sell the
Development Property to the Developer for Two Hundred Twelve Thousand Dollars and 00/100
($212,000.00).
The Developer will pay to the Authority within ten (10) days of execution of this Agreement earnest
money in the amount of $20,000.00 which shall be credited to the Developer at the time of closing.
The Authority agrees to convey title and possession of the Development Property to the Developer
by quit claim deed in the form attached hereto as Exhibit B. The conveyance of the Development
Property and the Developer's use of the Development Property shall be subject to all of the
conditions, covenants, restrictions and limitations imposed by this Agreement and the Development
Property Deed. The conveyance of title to the Development Property and the Developer's use of the
Development Property shall also be subject to the building and zoning laws and ordinances and all
other City, State and federal laws and regulation, easements and rights of way.
Section 3.2. Condition of Title. Within fourteen (14) days of the date of this Agreement,
the Authority agrees to submit to the Developer a commitment for title insurance regarding the
Development Property. The Developer shall have twenty (20) days after delivery of the
commitment to examine same and to make any objections concerning the condition of title
regarding the Development Property. Objections to the condition of title shall be made in writing
and addressed to the Authority. Failure on the part of the Developer to make objections within
twenty (20) days shall constitute a waiver of same and of the Developer’s right to object to the
condition of title. If the Developer provides written objections to title, the Authority shall have
forty-five (45) days thereafter to cure the defects cited by the Developer or to inform the Developer
in writing that the Authority cannot or will not cure said defects. If there are no defects in title to
which the Developer objects in writing or the Developer fails to object in a timely manner or if the
Authority cures the defects within the prescribed period, the parties will proceed to closing. If there
are defects in title to which the Developer has objected in a timely manner and which the Authority
cannot or will not cure, the Developer may terminate this Agreement at its option within ten (10)
days of notice from the Authority of its inability or unwillingness to cure. The Authority shall have
no obligation to cure any defects in the title of the Development Property. If the Developer chooses
to terminate this Agreement pursuant to this Section 3.2, the Developer agrees to execute a quit
claim deed regarding the Development Property in favor of the Authority and the Authority shall
refund to the Developer all earnest money and deposits received. Thereafter the parties shall have
no further obligation towards one another with regard to this Agreement or the Development
Property. The Developer may also choose to proceed to closing on the Development Property and
take title subject to the defect. Notwithstanding any other provision herein to the contrary, if the
Developer proceeds to closing within less than the time periods set forth herein for receipt of a
commitment for title insurance and objection to title defects, such action shall be deemed to be a
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waiver by the Developer of its right to examine and object to the condition of title of the
Development Property.
Section. 3.3. Financing. Before conveyance of the Development Property by the Authority,
the Developer agrees to submit to the Authority evidence of a commitment for financing which is
adequate, in the Authority’s sole opinion, for the construction of the Minimum Improvements. If the
Authority finds that the financing complies with the terms of this Section 3.3 and is sufficiently
committed and adequate in amount to provide for the construction of the Minimum Improvements,
the Authority shall notify the Developer in writing of its approval. Such approval shall not be
unreasonably withheld. If the Authority rejects the evidence of financing as inadequate, it shall do
so in writing specifying the basis for the rejection and the Developer shall have 30 days thereafter to
submit a commitment for additional or alternate financing acceptable to the Authority. If the
Developer fails to submit a commitment for financing acceptable to the Authority within said period
of time or any additional period to which the Authority may agree, the Authority may notify the
Developer of its failure to comply with the requirement of this Section 3.3 and may terminate this
Agreement at its sole discretion.
Section 3.4. Representations.
(a) The Authority makes the following representations and disclosures regarding the
Development Property:
1. The Authority represents that water and sanitary sewer hook-ups exist or are
available to the Development Property.
2. The Authority represents that primary electric distribution infrastructure is installed
and is available to the Development Property.
3. The Authority represents that it has surveyed and platted the Development Property.
The plat of KENYON BUSINESS PARK identifying the property lines for the
Development Property is available to the Developer upon request.
The Developer has thirty (30) days to review the documents noted above in this
Section 3.4(a) and to make any objections, or any objections shall be deemed waived.
(b) Other than as represented herein by the Authority, the Developer acknowledges that
the Authority makes no representations or warranties as to the condition of the soils on the
Development Property or its fitness for its intended use and for construction of the Minimum
Improvements or any other purpose for which the Developer may make use of such property.
(c) After execution of this Agreement and within sixty (60) days thereafter, the
Developer may notify the Authority of its desire to undertake tests and inspections of the
Development Property regarding the presence of pollution, contamination or hazardous substances
on the Development Property and the suitability of the soils for the Developer’s intended purposes.
The Developer, and person or persons selected by Developer shall be permitted access to the
Development Property for the purpose of conducting such studies and investigations of the
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Development Property as Developer deems appropriate, which studies and investigations shall be
conducted at Developer's sole expense and pursuant to any other terms and conditions of this
Agreement. Developer agrees to indemnify the Authority against any liability, cost or expense
incurred by the Authority as a result of Developer's actions, including but not limited to fines, court
costs, reasonable attorneys' fees and remedial costs. Such studies may include without limitation,
physically inspecting the Development Property, conducting soil tests, and reviewing the
Authority's records concerning the Development Property which records shall be made reasonably
available to Developer within ten (10) days after execution of this Agreement, including prior
studies, investigations and surveys, if any, in the Authority’s possession.
(d) Other than as represented herein by the Authority, the Developer acquires the
Development Property "as is." After execution of this Agreement and within sixty (60) days
thereafter, the Developer may notify the Authority of its desire to undertake tests and inspections of
the Development Property regarding the presence of pollution, contamination or hazardous
substances on the Development Property and the suitability of the soils for the Developer’s intended
purposes, which studies and investigations shall be conducted at Developer's sole expense and
pursuant to any other terms and conditions of this Agreement. In the event that the Developer,
following such tests and inspections, determines in its sole judgment that the condition of the
Development Property is unsuitable for its intended use and for construction of the Minimum
Improvements, the Developer may terminate this Agreement and return the Development Property
to its condition prior to undertaking such tests and inspections. Regardless of whether the
Developer avails itself of the right to conduct tests and inspections on the Development Property
pursuant to this Section 3.4, after closing the Authority shall have no obligation or liability to the
Developer for any unsuitability with respect to the soil conditions or the presence of any pollution,
contamination or hazardous substances on the Development Property. Notwithstanding any other
provision herein to the contrary, if the Developer proceeds to closing within less than the period of
time allowed in this Section 3.4 for testing, such action shall be deemed to be a waiver by the
Developer of its right to test on the Development Property. If before sixty (60) days the Developer
does not choose to proceed to closing, all earnest monies will be returned.
(e) The Authority does not know of any wells on the Development Property, and will so
certify in the deed conveying the Development Property to the Developer.
Section 3.5. Conditions Precedent to Conveyance. Notwithstanding anything herein to the
contrary, the Authority shall not be obligated to convey the Development Property to the Developer
until the following conditions precedent have been satisfied:
(a) The Developer has submitted a commitment or other evidence of financing which is
adequate, in the Authority’s sole discretion, to fully finance construction of the Minimum
Improvements;
(b) The Developer has submitted and the Authority has approved the Construction
Plans;
(c) The Authority has held a public hearing and fulfilled all requirements of Minnesota
Statutes, Section 469.105;
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(d) There has been no Event of Default on the part of the Developer which has not been
cured;
(e) All of the above condition precedents shall occur within the time frame established
in Section 3.7 of this Agreement, unless extended by the Developer and the Authority. If such
extension is not obtained, all earnest money and deposits shall be returned to the Developer within
ten (10) days thereafter.
Section 3.6. Intentionally Omitted.
Section 3.7. Closing; Delivery and Recording. (a) Subject to the substantial satisfaction of
all of the terms and conditions contained in this Agreement which must be satisfied prior to the
Authority's conveyance of the Development Property to the Developer, the Authority shall execute
and deliver the Development Property Deed to the Developer at closing. Closing shall occur on the
Date of Closing which shall occur within sixty (60) days of execution of this Agreement, or as soon
thereafter as reasonably practicable, or as determined by the parties. The Developer shall have
possession of the Development Property upon the Date of Closing. Closing shall be at the offices of
the City, 709 Second Street, Kenyon, MN 55946 or such other location to which the parties may
agree. Prior to closing, the Authority shall submit to the Developer a copy of the Development
Property Deed and other closing documents for review. The Development Property Deed shall be
in recordable form and shall be recorded among the County land records.
(b) On the Date of Closing, the Developer shall be responsible for and pay:
(1) the cost of recording the Development Property Deed and this Agreement;
(2) all fees associated with obtaining the commitment for title insurance and the
policy of title insurance;
(3) the cost of copies of all additional title documents necessary for the
examination of title;
(4) for any documents related to or in connection with the financing of the
Development Property, including but not limited to, recording fees and
mortgage registration tax;
(5) one-half of the title company closing fees, if any; and
(6) all of the Developers’ attorney’s fees.
(c) On the Date of Closing, the Authority shall be responsible for and pay:
(1) transfer taxes, including State deed tax, to allow the Developer to record the
Development Property Deed;
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(2) costs of recording any instruments used to clear title encumbrances;
(3) one-half of the title company closing fees, if any; and
(4) all of the Authority’s attorney’s fees.
(d) On the Date of Closing, the following costs will be paid on a pro rata basis in the
year of closing between the Authority and the Developer:
(1) utilities furnished to the Development Property, if any; and
(2) real estate taxes and special assessments, if any.
Section 3.8. Attorney Costs. The Developer shall pay its own costs to prepare and review
this Agreement and any other legal fees associated with the Development Property that are the
responsibility of the Developer. The Authority shall pay its own costs to prepare and review this
Agreement and any other legal fees associated with the Development Property that are the
responsibility of the Authority.
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will
construct the Minimum Improvements on the Development Property in accordance with the
Construction Plans and at all times prior to the Termination Date will devote the Development
Property to its intended Use and maintain, preserve and keep the Minimum Improvements or cause
the Minimum Improvements to be maintained, preserved and kept in good repair and condition.
The Developer recognizes that it is because the Developer has agreed to devote the Development
Property to its intended Use and to construct the Minimum Improvements that the Authority is
willing to sell the Development Property to the Developer. The Developer acknowledges that, in
addition to the requirements of this Agreement, construction of the Minimum Improvements will
necessitate compliance with other reviews and approvals by the Authority and possibly other
governmental agencies and review board of the Business Park and agrees to submit all applications
for and pursue to their conclusion all other approvals needed prior to constructing the Minimum
Improvements.
Section 4.2. Construction Plans. (a) Within sixty (60) days after execution of this
Agreement, the Developer shall submit dated Construction Plans to the Authority. The
Construction Plans shall provide for the construction of the Minimum Improvements and shall be in
substantial conformity with the Preliminary Plans and this Agreement. The Authority will approve
the Construction Plans if they (1) conform to the Preliminary Plans listed in Exhibit C attached
hereto; (2) conform to all applicable federal, State and local laws, ordinances, rules and regulations;
(3) are adequate to provide for the construction of the Minimum Improvements; (4) conform to the
State building code; (5) if there has occurred no uncured Event of Default on the part of the
Developer. No approval by the Authority shall relieve the Developer of the obligation to comply
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with the terms of this Agreement, the terms of any applicable federal, State and local laws,
ordinances, rules and regulations in the construction of the Minimum Improvements. No approval
by the Authority shall constitute a waiver of an Event of Default.
(b) If the Developer desires to make any change in the Construction Plans after their
approval by the Authority, including any change to the design or materials of the Minimum
Improvements or any other change which would also require review or reapproval under any
applicable code, ordinance or regulation, the Developer shall submit the proposed change to the
Authority for its approval. If the proposed change conforms to the requirements of this section 4.2
with respect to the original Construction Plans or is otherwise acceptable to the Authority, the
Authority shall approve the proposed change. Such change in the Construction Plans shall be
deemed approved by the Authority unless rejected, in whole or in part, by written notice by the
Authority to the Developer, setting forth in detail the reasons therefor. Such rejection shall be made
within ten (10) days after receipt of the written notice of such change from the Developer.
Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Developer shall commence construction of the Minimum Improvements no later than
sixty (60) days from the Date of Closing. Subject to Unavoidable Delays, the Developer shall have
substantially completed the construction of the Minimum Improvements no later than twelve (12)
months from the Date of Closing. All work with respect to the Minimum Improvements to be
constructed or provided by the Developer on the Development Property shall be in conformity with
the Construction Plans. The Developer shall make such reports to the Authority regarding
construction of the Minimum Improvements as the Authority deems necessary or helpful in order to
monitor progress on construction of the Minimum Improvements.
Section 4.4. Certificate of Completion and Release of Forfeiture. (a) After substantial
completion of the Minimum Improvements in accordance with the Construction Plans and all terms
of this Agreement, the Authority will furnish the Developer with a Certificate of Completion and
Release of Forfeiture in the form of Exhibit D hereto. Such certification by the Authority shall be a
conclusive determination of satisfaction and termination of the agreements and covenants in this
Agreement and in the Development Property Deed with respect to the obligations of the Developer
to construct the Minimum Improvements and the dates for the beginning and completion thereof.
The Certificate of Completion and Release of Forfeiture shall only be issued after issuance of a
certificate of occupancy by the City.
(b) The Certificate of Completion and Release of Forfeiture provided for in this
section 4.4 shall be in such form as will enable it to be recorded in the proper County office for the
recordation of deeds and other instruments pertaining to the Development Property. If the Authority
shall refuse or fail to provide such certification in accordance with the provisions of this section 4.4,
the Authority shall, within thirty (30) days after written request by the Developer, provide the
Developer with a written statement, indicating in adequate detail in what respects the Developer has
failed to complete the Minimum Improvements in accordance with the provisions of the Agreement,
or is otherwise in default of a material term of this Agreement, and what measures or acts will be
necessary, in the opinion of the Authority, for the Developer to take or perform in order to obtain
such certification.
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Section 4.5. Reconstruction of Improvements. If the Minimum Improvements are damaged
or destroyed before or after completion thereof and issuance of a Certificate of Completion and
Release of Forfeiture, but before the Termination Date, the Developer agrees, for itself and its
successors and assigns, to reconstruct the Minimum Improvements to a value at least equal to the
Minimum Market Value within one year of the date of the damage or destruction. No delay or
failure by the Developer or any successor or assign to reconstruct the Minimum Improvements as
required by this Section 4.5 shall alter or limit the Developer’s obligations under this Agreement,
which shall remain in full force and effect until the Termination Date. The Minimum
Improvements shall be reconstructed in accordance with the approved Construction Plans, or such
modifications thereto as may be requested by the Developer and approved by the Authority in
accordance with Section 4.2 of this Agreement. The Developer’s obligation to reconstruct the
Minimum Improvements pursuant to this Section 4.5 shall end on the Termination Date.
ARTICLE V
Insurance
Section 5.1. Required Insurance. (a) The Developer agrees to provide and maintain at all
times during the process of constructing the Minimum Improvements and, from time to time at the
request of the Authority, furnish the Authority with proof of payment of premiums on:
(i) Builder's risk insurance, written on the so-called “Builder's Risk --
Completed Value Basis,” in an amount equal to one hundred percent (100%) of the
insurable value of the Minimum Improvements at the date of completion, and with coverage
available in non-reporting form on the so-called “all risk” form of policy;
(ii) Comprehensive general liability insurance (including operations, contingent
liability, operations of subcontractors, completed operations and contractual liability
insurance) together with an Owner's Contractor's Policy with limits against bodily injury and
property damage of not less than $1,000,000 for each occurrence (to accomplish the above -
required limits, an umbrella excess liability policy may be used); and
(iii) Workers' compensation insurance, with statutory coverage.
The policies of insurance required pursuant to clauses (i) and (ii) above shall be in form and content
reasonably satisfactory to the Authority and shall be placed with financially sound and reputable
insurers licensed to transact business in Minnesota. The policy of insurance delivered pursuant to
clause (i) above shall contain an agreement of the insurer to give not less than sixty (60) days'
advance written notice to the Authority in the event of cancellation of such policy or change
affecting the coverage thereunder.
(b) Upon completion of construction of the Minimum Improvements, and prior to the
Termination Date, the Developer shall maintain, or cause to be maintained, at its cost and expense,
and from time to time at the request of the Authority shall furnish proof of the payment of premiums
on, insurance as follows:
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(i) Insurance against loss and/or damage to the Minimum Improvements under
a policy or policies covering such risks as are ordinarily insured against by similar
businesses, including (without limiting the generality of the foregoing) fire, extended
coverage, vandalism and malicious mischief, heating system explosion, water damage,
demolition cost, debris removal, collapse and flood, in an amount not less than the full
insurable replacement value of the Minimum Improvements or the Minimum Market Value,
whichever is greater. No policy of insurance shall be so written that the proceeds thereof
will produce less than the minimum coverage required by the preceding sentence, by reason
of coinsurance provisions or otherwise, without the prior consent thereto in writing by the
Authority. The term “full insurable replacement value” shall mean the actual replacement
cost of the Minimum Improvements and shall be determined from time to time at the request
of the Authority, but not more frequently than once every three years, by an insurance
consultant or insurer, selected and paid for by the Developer and approved by the Authority;
and
(ii) Such other insurance, including worker's compensation insurance respecting
all employees of the Developer, in such amount as is customarily carried by like
organizations engaged in like activities of comparable size and liability exposure; provided
that the Developer may be self-insured with respect to all or any part of its liability for
worker's compensation.
Section 5.2. Evidence of Insurance. All insurance required in this Article V shall be taken
out and maintained in responsible insurance companies selected by the Developer which are
authorized under the laws of Minnesota to assume the risks covered thereby. The Developer agrees
to deposit annually with the Authority copies of policies evidencing all such insurance, or a
certificate or certificates or binders of the respective insurers stating that such insurance is in force
and effect. Unless otherwise provided in this Article V, each policy shall contain a provision that
the insurer shall not cancel nor materially modify it without giving written notice to the Developer
and the Authority at least sixty (60) days before the cancellation or modification becomes effective
(ten (10) days for non-payment of premium). Not less than fifteen (15) days prior to the expiration
of any policy, the Developer shall furnish the Authority evidence satisfactory to the Authority that
the policy has been renewed or replaced by another policy conforming to the provisions of this
Article V, or that there is no necessity therefor under the terms of this Agreement. In lieu of
separate policies, the Developer may maintain a single policy, blanket or umbrella policies, or a
combination thereof, having the coverage required herein, in which event the Developer shall
deposit with the Authority a certificate or certificates of the respective insurers as to the amount of
coverage in force upon the Minimum Improvements.
ARTICLE VI
Collection of Taxes
Section 6.1. Taxes. The Developer agrees that prior to the Termination Date: (1) it will not
seek administrative or judicial review of the applicability of any tax statute determined by any Tax
Official to be applicable to the Minimum Improvements or the Development Property or raise the
inapplicability of any such tax statute as a defense in any proceedings, including delinquent tax
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proceedings; (2) it will not seek administrative or judicial review of the constitutionality of any tax
statute determined by any Tax Official to be applicable to the Minimum Improvements or the
Development Property or raise the unconstitutionality of any such tax statute as a defense in any
proceedings, including delinquent tax proceedings; (3) it will not cause a reduction in the Minimum
Market Value paid in respect of the Minimum Improvements through:
(a) willful destruction of the Minimum Improvements or any part thereof;
(b) willful refusal to reconstruct damaged or destroyed property pursuant to section 4.5
of this Agreement;
(c) a request to the County assessor to reduce the Minimum Market Value of all or any
portion of the Minimum Improvements;
(d) a petition to the board of equalization of the County to reduce the Minimum Market
Value of all or any portion of the Development Property;
(e) a petition to the board of equalization of the State or the commissioner of revenue of
the State to reduce the Minimum Market Value of all or any portion of the Development Property;
(f) an action in a district court of the State or the tax court of the State seeking a
reduction in the Minimum Market Value of the Development Property;
(g) an application to the commissioner of revenue of the State or to any local taxing
jurisdiction requesting an abatement of real property taxes;
(h) any other proceedings, whether administrative, legal or equitable, with any
administrative body within the County or the State or with any court of the State or the federal
government; or
(i) a transfer of the Development Property or Minimum Improvements, or any part
thereof, to an entity exempt from the payment of real property taxes under State law.
The Developer shall not, prior to the Termination Date, apply for a deferral of property tax on the
Development Property or the Minimum Improvements.
Section 6.2. Right to Collect Delinquent Taxes. The Developer understands that the real
estate taxes on the Development Property and the Minimum Improvements must be promptly and
timely paid. To that end, the Developer agrees for itself, its successors and assigns, in addition to
the obligation pursuant to statute to pay real estate taxes, that the Developer is also obligated at all
times prior to the Termination Date by reason of this Agreement to pay before delinquency all real
estate taxes assessed against the Development Property and the Minimum Improvements. The
Developer acknowledges that at all times prior to the Termination Date this obligation creates a
contractual right on behalf of the Authority to sue the Developer or its successors and assigns to
collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a
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tax payment to the County auditor. In any such suit, the Authority shall also be entitled to recover
its reasonable out-of-pocket costs, expenses and attorney fees.
ARTICLE VII
Prohibition Against Sale; Encumbrances; Indemnification
Section 7.1. Prohibition Against Sale of Minimum Improvements. The Developer
represents and agrees that its use of the Development Property and its other undertakings pursuant
to the Agreement, are, and will be, for the purpose of development of the Development Property
and not for speculation in land holding. The Developer further recognizes that in view of the
importance of the construction of the Minimum Improvements on the Development Property to the
general welfare of Kenyon, the fact that any act or transaction involving or resulting in a significant
change in the identity of the Developer is of particular concern to the Authority. The Developer
further recognizes that it is because of such qualifications and identity that the Authority is entering
into the Agreement with the Developer, and, in so doing, is further willing to accept and rely on the
obligations of the Developer for the faithful performance of all undertakings and covenants hereby
by it to be performed. For the foregoing reasons, the Developer represents and agrees that, prior to
the issuance of the Certificate of Completion and Release of Forfeiture, there shall be no Sale of the
Development Property or the Minimum Improvements by the Developer nor shall the Developer
suffer any such Sale to be made, without the prior written approval of the Authority.
Section 7.2. Limitation Upon Encumbrance of Development Property. Prior to the issuance
of the Certificate of Completion and Release of Forfeiture, the Developer agrees not to engage in
any financing creating any mortgage or other encumbrance or lien upon the Development Property
or the Minimum Improvements, whether by express agreement or operation of law, or suffer any
encumbrance or lien to be made on or attached to the Development Property or the Minimum
Improvements, other than the liens or encumbrances directly and solely related to the purchase of
the Development Property and the construction of the Minimum Improvements and approved by the
Authority, which approval shall not be withheld or delayed unreasonably if the Authority
determines that such lien or encumbrance will not threaten its security in the Development Property
or the Minimum Improvements.
Section 7.3. Release and Indemnification Covenants. (a) Except for any
misrepresentation or any willful or wanton misconduct or negligence of the Authority or the
governing body members, officers, agents, servants, consultants and employees thereof (the
“Indemnified Parties”), and except for any breach by the Indemnified Parties of their
representative’s obligations under this Agreement, the Indemnified Parties shall not be liable for
and the Developer shall indemnify and hold harmless the Indemnified Parties against any loss or
damage to property or any injury to or death of any person (collectively, the “Claim”) occurring
at or about or resulting from any defect in the portion of the Development Property or the
Minimum Improvements owned by Developer at the time the Claim occurred.
(b) Except for any misrepresentation or any willful or wanton misconduct or
negligence of the Indemnified Parties, and except for any breach by any of the Indemnified
Parties of their representative’s obligations under this Agreement, the Developer agrees to
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protect and defend the Indemnified Parties, now and forever, and further agrees to hold the
aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any
person or entity whatsoever arising from the acquisition, construction, installation, ownership,
maintenance and operation of the Development Property or the Minimum Improvements
(collectively, the “Claim”); provided, however, notwithstanding the foregoing, the Developer’s
indemnification and hold harmless shall apply only with regard to the portion of the
Development Property or Minimum Improvements owned by the Developer at the time the
Claim occurred.
(c) Except for any misrepresentation or any willful or wanton misconduct or
negligence of the Indemnified Parties, and except for any breach by any of the Indemnified
Parties of their representations and obligations under this Agreement, the Indemnified Parties
shall not be liable for any damage or injury to the persons or property of the Developer or its
officers, agents, servants or employees or any other person who may be about the Development
Property or Minimum Improvements (collectively, the “Claims”) owned by the Developer at
the time of the Claim.
(d) All covenants, stipulations, promises, agreements and obligations of the Authority
contained herein shall be deemed to be the covenants, stipulations, promises, agreements and
obligations of such entities and not of any governing body member, officer, agent, servant or
employee of such entities in the individual capacity thereof.
ARTICLE VIII
Events of Default
Section 8.1. Events of Default Defined. Each and every one of the following shall be an
Event of Default under this Agreement:
(a) Failure by the Authority or the Developer to proceed to closing on the Development
Property after compliance with or the occurrence of all conditions precedent to closing;
(b) Failure by the Developer to commence and complete construction of the Minimum
Improvements pursuant to the terms, conditions and limitations of Article IV of this Agreement,
including the timing thereof, unless such failure is caused by an Unavoidable Delay;
(c) Failure by the Developer to pay real estate taxes or special assessments on the
Development Property and Minimum Improvements as they become due;
(d) Appeal or challenge by the Developer or any party on its behalf of the Minimum
Market Value prior to the Termination Date;
(e) Use by the Developer or others of the Minimum Improvements for purposes other
than those contemplated and permitted by this Agreement, including failure to comply with
Sections 9.3 and 9.10 of this Agreement.
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(f) Transfer or Sale of the Development Property or the Minimum Improvements or any
part thereof by the Developer in violation of Sections 6.1 or 7.1 of this Agreement and without the
prior written permission by the Authority;
(g) If the Developer shall file a petition in bankruptcy, or shall make an assignment for
the benefit of its creditors or shall consent to the appointment of a receiver; or
(h) Failure by either party to observe or perform any material covenant, condition,
obligation or agreement on its part to be observed or performed under this Agreement or the
Assessment Agreement;
Section 8.2. Remedies on Default. Whenever any Event of Default referred to in
Section 8.1 of this Agreement occurs, the non-defaulting party may take any one or more of the
following actions after providing 30 days written notice to the defaulting party of the Event of
Default, but only if the Event of Default has not been cured within said thirty days or, if the Event of
Default is by its nature incurable within 30 days, the defaulting party does not provide assurances to
the non-defaulting party reasonably satisfactory to the non-defaulting party that the Event of Default
will be cured and will be cured as soon as reasonably possible:
(a) Suspend its performance under this Agreement, including refusing to close on the
Development Property, until it receives assurances from the defaulting party, deemed adequate by
the non-defaulting party, that the defaulting party will cure its default and continue its performance
under this Agreement;
(b) Terminate or rescind this Agreement;
(c) If the default occurs prior to completion of the Minimum Improvements, the
Authority may withhold the Certificate of Completion and Release of Forfeiture;
(d) If the default occurs prior to issuance of the Certificate of Completion and Release
of Forfeiture, revest title in the name of the Authority pursuant to Section 8.3 of this Agreement;
(e) Take whatever action, including legal or administrative action, which may appear
necessary or desirable to the non-defaulting party to collect any payments due under this
Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of
the defaulting party under this Agreement; and
(f) If the Developer’s default occurs prior to the Date of Closing, the Authority may
retain any and all earnest money paid by the Developer pursuant to Section 3.1 of this Agreement.
Section 8.3. Revesting Interest in the Authority Upon Happening of Event of Default
Subsequent to Conveyance to Developer. Pursuant to the requirements of Minnesota Statutes,
Section 469.105, subd. 6, in the event that subsequent to conveyance of the Development Property
to the Developer and prior to the issuance of a Certificate of Completion and Release of Forfeiture
for the Minimum Improvements:
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(a) the Developer, subject to Unavoidable Delays, fails to begin construction of the
Minimum Improvements in conformity with this Agreement and such failure to begin construction
is not cured within 30 days after written notice from the Authority to the Developer to do so; or
(b) subject to Unavoidable Delays, the Developer, after commencement of the
construction of the Minimum Improvements, fails to carry out its obligations with respect to the
completion of construction of the Minimum Improvements (including the nature and the date for the
completion thereof), or abandons or substantially suspends construction work, and any such failure,
abandonment, or suspension shall not be cured, ended, or remedied within 30 days after written
demand from the Authority to the Developer to do so; or
(c) the Developer shall fail to pay real estate taxes or assessments on the Development
Property when due, or shall place thereon any encumbrance or lien unauthorized by this Agreement,
or shall suffer any levy or attachment to be made, or any materialmen's or mechanics' lien, or any
other unauthorized encumbrance or lien to attach, and such taxes or assessments shall not have been
paid, or the encumbrance or lien removed or discharged or provision satisfactory to the Authority
made for such payment, removal, or discharge, within 30 days after written demand by the
Authority to do so or such longer period, not to exceed 60 days, as may reasonably be necessary to
remove said lien or encumbrance; provided, that if the Developer shall first notify the Authority of
its intention to do so, it may in good faith contest any mechanics' or other lien to remain
undischarged and unsatisfied during the period of such contest and any appeal, but only if the
Developer provides the Authority with a bank letter of credit or other security in the amount of the
lien, in a form satisfactory to the Authority, pursuant to which the bank will pay to the Authority the
amount of any lien in the event the lien is finally determined to be valid or, as an alternative to such
forms of security, has made a deposit with the district court in the manner provided in Minnesota
Statutes, section 514.10. During the course of such contest, the Developer shall keep the Authority
informed respecting the status of such defense; or
(d) there is, in violation of Sections 6.1 or 7.1 of this Agreement, any transfer of the
Development Property to an entity exempt from payment of real estate taxes or any Sale of the
Development Property or the Minimum Improvements or any part thereof, and such violation shall
not be cured within 30 days after written demand by the Authority to the Developer;
Then the Authority shall have the right to re-enter and take possession of the Development Property
and to terminate and revest in the Authority the interest of the Developer in the Development
Property; provided, however, that any exercise by the Authority of its rights or remedies hereunder
shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way the
lien of any mortgage or other encumbrance specifically and previously authorized by the Authority
in writing under this Agreement or any rights or interests provided in this Agreement for the
protection of the holders of an approved encumbrance.
Section 8.4. Resale of Reacquired Development Property; Disposition of Proceeds.
Upon the revesting in the Authority of title to and/or possession of the Development Property or any
part thereof as provided herein, the Authority shall, pursuant to its responsibilities under law, use its
best efforts to sell the Development Property or part thereof as soon and in such manner as the
Authority shall find feasible and consistent with the objectives of such law to a qualified and
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responsible party or parties (as determined by the Authority) who will assume the obligation of
making or completing the Minimum Improvements or such other improvements in their stead as
shall be satisfactory to the Authority in accordance with the uses specified for such Development
Property or part thereof. During any time while the Authority has title to and/or possession of a
parcel obtained by reverter, the Authority will not disturb the rights of any owner of any housing
unit on such parcel. Upon resale of the Development Property, the proceeds thereof shall be
applied:
(a) First, to reimburse the Authority for all costs and expenses incurred by them,
including but not limited to salaries of personnel, in connection with the recapture, management,
and resale of the Development Property (but less any income derived by the Authority from the
property or part thereof in connection with such management); all taxes, assessments, and water and
sewer charges with respect to the Development Property or part thereof (or, in the event the
Development Property is exempt from taxation or assessment or such charge during the period of
ownership thereof by the Authority, an amount, if paid, equal to such taxes, assessments, or charges
(as determined by the Authority assessing official) as would have been payable if the Development
Property were not so exempt); any payments made or necessary to be made to discharge any
encumbrances or liens existing on the Development Property or part thereof at the time of revesting
of title thereto in the Authority or to discharge or prevent from attaching or being made any
subsequent encumbrances or liens due to obligations, defaults or acts of the Developer, its
successors or transferees; any expenditures made or obligations incurred with respect to the making
or completion of the subject improvements or any part thereof on the Development Property or part
thereof; and any amounts otherwise owing the Authority by the Developer and its successor or
transferee; and
(b) Second, to reimburse the Developer, its successor or transferee, up to the amount
equal to the amount actually invested by it in making any of the subject improvements on the
Development Property or part thereof.
(c) Any balance remaining after such reimbursements shall be retained by the Authority
as its property.
Section 8.5. No Remedy Exclusive. No remedy herein conferred upon or reserved to the
parties is intended to be exclusive of any other available remedy or remedies, but each and every
such remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or power or shall
be construed to be a waiver thereof, but any such right and power may be exercised from time to
time and as often as may be deemed expedient. In order to entitle the Authority or the Developer to
exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as
may be required in Article IX of this Agreement.
Section 8.6. No Additional Waiver Implied by One Waiver. In the event any covenant or
agreement contained in this Agreement should be breached by either party and thereafter waived by
the other party, such waiver shall be limited to the particular breach so waived and shall not be
deemed to waive any other concurrent, previous or subsequent breach hereunder.
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ARTICLE IX
Additional Provisions
Section 9.1. Conflict of Interests; Representatives Not Individually Liable. No officer,
official, or employee of the Authority shall have any personal financial interest, direct or indirect, in
this Agreement, nor shall any such officer, official, or employee participate in any decision relating
to the Agreement which affects his or her personal financial interests, directly or indirectly. No
officer, official, or employee of the Authority shall be personally liable to the Developer, or any
successor in interest, in the event of any default or breach or for any amount which may become due
or on any obligation under the terms of this Agreement.
Section 9.2. Equal Employment Opportunity. The Developer, for itself and its successors
and assigns, agrees that during the construction of the Minimum Improvements provided for in this
Agreement, it will comply with all applicable equal employment and nondiscrimination laws and
regulations.
Section 9.3. Restrictions on Use. The Developer, for itself and its successors and assigns,
agrees to devote the Property and Minimum Improvements only to such land use or uses as may be
permissible under the City’s land use regulations. The Developer, for itself, its successors and
assigns, acknowledges the limitations on use of the Property and the Minimum Improvements
imposed by Section 469.105 of the EDA Act and agrees to comply with such restrictions.
Section 9.4. Provisions Not Merged With Deed; No Merger of Representations,
Warranties. None of the provisions, representations or warranties contained in this Agreement are
intended to be merged into any instruments of conveyance delivered at closing or shall be merged
by reason of delivery of the Development Property Deed, but instead shall survive closing, and the
parties shall be bound accordingly. The Development Property Deed shall not be deemed to affect
or impair the provisions and covenants of this Agreement.
Section 9.5. Notices and Demands. Except as otherwise expressly provided in this
Agreement, any notice, demand, or other communication under the Agreement or any related
document by either party to the other shall be sufficiently given or delivered if it is dispatched by
registered or certified United States mail, postage prepaid, return receipt requested, or delivered
personally to:
(a) in the case of the Authority: 709 Second Street
Kenyon, MN 55946
Attn: Executive Director
(b) in the case of the Developer: Firebird LLC
202 North Cedar Avenue, Suite 1
Owatonna, MN 55060
Attn: Mark Jaurnek
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or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section 9.5.
Section 9.6. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 9.7. Disclaimer of Relationships. The Developer acknowledges that nothing
contained in this Agreement nor any act by the Authority or the Developer shall be deemed or
construed by the Developer or by any third person to create any relationship of third-party
beneficiary, principal and agent, limited or general partner, or joint venture between the Authority
and the Developer.
Section 9.8. Release of Claims. The Developer and the Developer’s attorneys, agents,
employees, former employees, insurers, heirs, administrators, representatives, successors and
assigns, hereby releases and forever discharges the Authority, and its attorneys, agents,
representatives, employees, former employees, insurers, heirs, executors and assigns of and from
any and all past, present or future claims, demands, obligations, actions or causes of action, at
law or in equity, whether arising by statute, common law or otherwise, and for all claims for
damages, of whatever kind or nature, and for all claims for attorneys' fees, and costs and
expenses, including but not limited to all claims of any kind arising out of the negotiation,
Developer consideration, execution and performance of this Agreement between the parties.
Nothing contained in this paragraph 9.8. is intended to prevent the exercise of any rights
available pursuant to this Agreement.
Section 9.9. Modification and Waiver. No purported amendment, modification or waiver
of any provision of this Agreement shall be binding unless set forth in a written document signed
by both the Authority and the Developer (in the case of amendments or modifications) or by the
party to be charged thereby (in the case of waivers). Any waiver shall be limited to the
circumstance or event specifically referenced in the written waiver document and shall not be
deemed a waiver of any other term of this Agreement or of the same circumstance or event upon
any recurrence thereof.
Section 9.10. Restrictions on Use. The Developer agrees that prior to the issuance of the
Certificate of Completion and Release of Forfeiture, the Developer and its successors and
assigns: (a) shall use the Development Property solely for the purpose of constructing and
operating the Minimum Improvements pursuant to the terms of this Agreement and as defined by
the definition of Use as set forth in this Agreement; (b) shall not discriminate upon the basis of
race, color, creed, sex, national origin, or any other classification prohibited by law in the lease,
rental, use or occupancy of any portion of the Minimum Improvements on the Development
Property or any improvements erected or to be erected thereon, or any part thereof; and (c) shall
otherwise comply with the restrictions on use set forth in this Agreement.
Section 9.11. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of this Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
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Section 9.12. Attorney Fees. Whenever any Event of Default occurs and if the Authority
shall employ attorneys or incur other expenses for the collection of payments due or to become
due, or for the enforcement of performance or observance of any obligation or agreement on the
part of the Developer under this Agreement, the Developer agrees that it shall, within ten days of
written demand by the Authority, pay to the Authority the reasonable fees of such attorneys and
such other expenses so incurred by the Authority.
Section 9.13. Choice of Law and Venue; Interpretation. This Agreement shall be
governed by, enforced and construed in accordance with the laws of the State of Minnesota. Any
disputes, controversies, or claims arising out of this Agreement shall be heard in the state or
federal courts of Minnesota, and all parties to this Agreement waive any objection to the
jurisdiction of these courts, whether based on convenience or otherwise.
Section 9.14. Entire Agreement. This Agreement constitutes the entire agreement
between the parties pertaining to its subject matter and it supersedes all prior contemporaneous
agreements, representations, and understandings of the parties pertaining to the subject matter of
this Agreement. This Agreement may be modified, amended, terminated, or waived, in whole or
in part, only by a writing signed by all of the parties.
Section 9.15. Broker. The Authority has engaged the services of a broker in connection
with the sale of the Development Property and the Authority will be solely responsible for the
costs of such broker and shall defend, indemnify and hold the Developer harmless from any
claims of such broker. The Developer represents that it has not engaged any real estate broker in
connection with the sale of the Development Property.
Section 9.16. Specific Performance. This Agreement may be specifically enforced by
the parties, provided that any action for specific enforcement is brought within six months after
the date of the alleged breach. This paragraph is not intended to create an exclusive remedy for
breach of this Agreement; the parties reserve all other remedies available at law or in equity.
Section 9.17. Additional Documents. The Authority and the Developer agree to
cooperate with the other and their representatives regarding any reasonable requests made
subsequent to the execution of this Agreement to correct any clerical errors in this Agreement
and to provide any and all additional documentation deemed necessary by either party to
effectuate the transaction contemplated by this Agreement.
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IN WITNESS WHEREOF, the Authority and the Developer have caused this Agreement to
be duly executed in their names and behalves on or as of the date first above written.
AUTHORITY:
KENYON ECONOMIC
DEVELOPMENT AUTHORITY
By: _________________________________
John Mortensen
President
By: _________________________________
Scott Lehner
Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF GOODHUE )
The foregoing instrument as acknowledged before me this _____ day of _________, 2025,
by John Mortensen and Scott Lehner, president and executive director, respectively, of the Kenyon
Economic Development Authority, a public body corporate and politic under the laws of Minnesota,
on behalf of the Kenyon Economic Development Authority.
____________________________________
Notary Public
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DEVELOPER:
Firebird LLC
By: ___________________________________
Mark Jaurnek
Its: ___________________________________
STATE OF MICHIGAN )
) ss.
COUNTY OF KALAMAZOO)
The foregoing instrument was executed this ____ day of _________, 2025, by Mark
Jaurnek, Developer.
__________________________________
Notary Public
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EXHIBIT A
LEGAL DESCRIPTION
The Development Property is located in Goodhue County, Minnesota, and is legally described as:
Lot 1, Block 3, KENYON BUSINESS PARK, Goodhue County, Minnesota.
PID No.: 66.435.0040
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EXHIBIT B
FORM OF QUIT CLAIM DEED
STATE DEED TAX DUE HEREON: $699.60
Date: ________________, 2025.
THIS INDENTURE, between the Kenyon Economic Development Authority, a public
body corporate and politic, under the laws of the State of Minnesota, Grantor, and Firebird LLC,
a Minnesota limited liability company, Grantee.
WITNESSETH, that the Grantor, in consideration of the sum of Two Hundred Twelve
Thousand Dollars and 00/100 ($212,000.00) and other good and valuable consideration, the
receipt whereof is hereby acknowledged, does hereby grant, bargain, quit claim and convey to
the Grantee, its successors and assigns, forever, all of the tract or parcel of land lying and being
in the County of Scott and State of Minnesota described as follows:
Lot 1, Block 3, KENYON BUSINESS PARK, Goodhue County, Minnesota.
To have and to hold the same, together with all hereditaments and appurtenances
thereunto belonging or in any way appertaining, to the Grantee, its successors and assigns,
forever. Subject to and together with, however, the provisions of the Permitted Encumbrances
described and referred to in Exhibit A attached hereto and incorporated herein by reference,
including, without limitation, the right of the Grantor upon the happening of an Event of Default
under that certain Purchase and Development Agreement between Grantor and Grantee dated as
of _____________, 2025, to re-enter and take possession of the Development Property and the
improvements thereon and terminate the estate and all right, title and interest of the Grantee in
and to the Development Property and improvements thereon, and revest in the Grantor all right,
title, estate and interest of the Grantee in the Development Property and improvements thereon,
free of any lien of any mortgage and other liens, except as permitted pursuant to the provisions of
the Purchase and Development Agreement.
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IN WITNESS WHEREOF, the Grantor has caused this deed to be duly executed in its
behalf by its chairman and its executive director on _______________, 2025.
■ The Seller certifies that the seller does not know of any wells on the described real property.
A well disclosure certificate accompanies this document.
I am familiar with the property described in this instrument and I certify that the status and
number of wells on the described real property have not changed since the last previously
filed well disclosure certificate.
KENYON ECONOMIC DEVELOPMENT
AUTHORITY
By:
John Mortensen
President
By:
Scott Lehner
Executive Director
STATE OF MINNESOTA )
) ss.
COUNTY OF GOODHUE )
The foregoing instrument was acknowledged before me this ______ day of
____________, 2025, by John Mortensen and Scott Lehner, the president and executive director,
respectively, of the Kenyon Economic Development Authority, a public body corporate and
politic under the laws of Minnesota, on behalf of the Kenyon Economic Development Authority.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Kennedy & Graven, Chartered (SJR)
150 South Fifth Stret, Suite 700
Minneapolis MN 55402
(612) 337-9300
Property Tax Statements for the Property described in this instrument should be sent to:
Firebird LLC
202 North Cedar Avenue, Suite 1
Owatonna, MN 55060
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EXHIBIT A TO
QUIT CLAIM DEED
Permitted Encumbrances
1. Taxes and installments of special assessments payable in 2026 and in subsequent years.
2. Building and zoning laws; federal, state and local laws, ordinances and regulations.
3. Easements for public streets, drainage, utilities, highways and roads now existing.
4. The terms, conditions, covenants and agreements set forth in the Purchase and
Development Agreement between the Grantor and Grantee named in the Deed to which
this Exhibit is attached, which Purchase and Development Agreement is hereby made a
part hereof by reference thereto.
5. Mortgage used to finance the purchase of the Development Property.
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EXHIBIT C
LIST OF PRELIMINARY PLAN DOCUMENTS
The Minimum Improvements shall be constructed in accordance with the following preliminary
plan documents:
The Preliminary Plan Documents are on file in the office of the Kenyon City Administrator at City
Hall.
[To Be Submitted]
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EXHIBIT D
FORM OF
CERTIFICATE OF COMPLETION
AND RELEASE OF FORFEITURE
WHEREAS, the Kenyon Economic Development Authority (the “Grantor”), by a deed
recorded in the office of the County Recorder in Goodhue County, Minnesota, as Document No.
__________, has conveyed to Firebird LLC, a Minnesota limited liability company (the “Grantee”),
the following described land in County of Goodhue and State of Minnesota, to-wit:
Lot 1, Block 3 KENYON BUSINESS PARK, Goodhue County, Minnesota
and
WHEREAS, said deed was executed pursuant to that certain Purchase and Development
Agreement by and between the Grantor and the Grantee dated the ____ day of _______, 2025, and
recorded in the office of the County Recorder in Goodhue County, Minnesota, as Document No.
__________, which Purchase and Development Agreement contained certain covenants and
restrictions regarding completion of the Minimum Improvements; and
WHEREAS, said Grantee has performed said covenants and conditions in a manner deemed
sufficient by the Grantor to permit the execution and recording of this certification.
NOW, THEREFORE, this is to certify that all construction of the Minimum Improvements
specified to be done and made by the Grantee has been completed and the covenants and conditions
in the Purchase and Development Agreement have been performed by the Grantee therein and that
the provisions for forfeiture of title and right to re-entry for breach of condition subsequent by
Grantor is hereby released absolutely and forever, and the County Recorder in Goodhue County,
Minnesota, is hereby authorized to accept for recording and to record the filing of this instrument, to
be a conclusive determination of the satisfactory termination of the covenants and conditions
relating to completion of the Minimum Improvements.
Dated: _______________, 202__. KENYON ECONOMIC DEVELOPMENT
AUTHORITY
By:
John Mortensen
President
By: ______________________________
Scott Lehner
Executive Director
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STATE OF MINNESOTA )
) ss.
COUNTY OF GOODHUE )
The foregoing instrument as acknowledged before me this _____ day of _________, 202__,
by John Mortensen and Scott Lehner, the president and executive director, respectively, of the
Kenyon Economic Development Authority, a public body corporate and politic, on behalf of the
Kenyon Economic Development Authority.
____________________________________
Notary Public
D-2
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AGENDA ITEM NO.
VIII.D
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Legal
AGENDA SECTION: LEGAL
SUBJECT: Power Sales Agreement
1. Resolution 2025-31 Authorizing the Execution of Bingham
Lakes Facility Wholesale Power Agreement
SUGGESTED ACTION:
In November, the KMU Commission recommended approving the
purchase of half a megawatt of wind energy and up to another half a
megawatt if it becomes available.
The council approved the power sales agreement between CMPAS
and the City of Kenyon subject to review and finalization by city
staff and the city attorney.
Attorney Riggs reviewed the agreement. The final agreement is
attached.
Resolution 2025-31 needs to be adopted to execute the Power Sales
Agreement.
MOTION NEEDED TO ADOPT RESOLUTION 2025-31
ATTACHMENTS:
Bingham_Lakes_Member_Downstream_Power_Sales_Agreement.DOCX
Resolution 2025-31 Authorizing_execution_of_CMMPA_Agreement_re_Bingham_Lake.docx
115
POWER SALES AGREEMENT
BETWEEN THE
CENTRAL MINNESOTA MUNICIPAL POWER AGENCY AND
CITY OF KENYON, MN
FOR A PURCHASE OF WIND ENERGY
January 1, 2026
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THIS AGREEMENT (" Agreement ") is executed by and between the Central
Minnesota Municipal Power Agency, a municipal corporation and political
subdivision of the State of Minnesota created under Minnesota law ("CMMPA"
or "Agency"), and the Board of Kenyon Municipal Utilities Commission of the City
of Kenyon, and the City of Kenyon, a Minnesota municipal corporation that
collectively own and operate a municipal electric utility under Minnesota law
(collectively, the "Participant").
RECITALS
1. CMMPA has entered into a power purchase agreement with Midwest Power
Partners (“MPP”) for the long-term purchase of wind energy ("PPA") from what
is commonly known as the “Bingham Lakes facility”. Energy, capacity and
renewable attributes purchased by CMMPA under the PPA will be delivered at a
designated point of delivery within the area governed by the Midcontinent
Independent System Operator, hereinafter "MISO" ("Transaction").
2. Participant is a member of CMMPA and has authorized purchase of an
entitlement share of the Transaction and desires to enter an agreement with
CMMPA to purchase such an entitlement share.
3. CMMPA proposes to sell, and the Participant proposes to purchase, the
Participant's entitlement share, as defined below.
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AGREEMENT
1. Term of Agreement. This Agreement shall be effective immediately upon
execution and delivery of the power sales agreements between CMMPA and the Project
Participants listed on Appendix A ("Participants"), and shall remain in effect until
December 31, 2045, inclusive ("Term").
2. Sale and Purchase. CMMPA shall sell and deliver and Participant shall purchase
and receive a quantity of the energy product equivalent to Participant's entitlement share
of the Transaction, as designated on Appendix A ("Entitlement Share"), all in accordance
with the terms of this Agreement. Delivery of Participant's Entitlement Share shall
commence immediately upon such energy product becoming available to CMMPA in
accordance with the Transaction. Participant’s Entitlement Share shall also include all
other renewable and carbon free energy and capacity-related attributes. If other MPP wind
facilities are added to this Agreement, Participant’s entitlement share of such additional
facilities will be identified in an agreement that is separate and distinct from this
Agreement.
3. Rates for Purchase and Sale. The purchase and sale of Participant's Entitlement
Share shall be at the rate of $34.00/MWH during the first full five (5) years of operation.
In year six (6), the rate shall increase by 5% to $35.70/MWH, with an additional 1%
increase after each subsequent full year. For avoidance of doubt, these values are listed
explicitly in Table 1 of Appendix A. Participant will not be billed for curtailment, nor
will CMMPA pay MPP for curtailment. In the event this status changes, CMMPA will
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discuss with Participant.
4. Delivery. CMMPA shall be solely responsible for the delivery of Participant's
Entitlement Share. Such delivery shall be at pricing node ALTW.W_BINGHAM and shall
be accomplished by CMMPA in accordance with MISO procedures, protocols and
applicable business practices for settlement of energy products (“Settlements”). In the
delivery of Participant's Entitlement Share, CMMPA shall undertake the Market
Participant function for the Bingham Lakes Facility. CMMPA shall facilitate the receipt
of Bingham Lakes’ accredited capacity and perform the "Day Ahead" scheduling and
Settlements to ensure the wind energy is timely sold into the MISO market at the
appropriate node.
All scheduling arrangements provided for in this paragraph are subject to actual
availability and operating levels of the Bingham Lakes facility from day to day and hour to
hour. Participant acknowledges and agrees that delivery of output allocable to its
Entitlement Share are not firm and are contingent upon the operation of the Bingham Lakes
facility, the availability of transmission and other factors over which CMMPA does not
have control. Participant also acknowledges it understands that CMMPA’s upstream purchase
agreement with MPP does not require any minimum level of wind output, does not require MPP
to provide replacement energy, and does not require MPP to pay liquidated damages, provide
a letter of credit, cash, or escrow fund if the Bingham Lakes facility fails to perform or
experiences a substantial casualty, or if MPP goes bankrupt.
5. Project Decisions. CMMPA shall have responsibility for decisions on behalf of
the Participants with respect to all matters related to the Transaction, consistent with the
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overall best interests of the Participants and CMMPA's requirements, obligations or
covenants relative to the Transaction, other applicable agreements, or other legal
requirements.
6. Billing. CMMPA shall bill Participant for Participant's Entitlement Share of the
Transaction on a calendar-month basis. Bills shall be issued by CMMPA as soon as
practicable in each month following the calendar month in which the Entitlement Share is
delivered. All bills shall show separately all charges, including any administrative
charges. Bills shall be payable to CMMPA within thirty (30) days of receipt of the
invoice. Any amounts due and not paid by the Participant within the thirty (30) days
allotted for payment, may, at CMMPA's sole discretion, accrue interest until paid at the
rate of one and one-half percent (1½%) per month, or the standard interest rate of the
Federal Energy Regulatory Commission, whichever is less.
7. Billing Disputes. Except as set forth below, Participant shall not have the right to
challenge any billing statement rendered by CMMPA in relation to the Transaction, invoke
arbitration of the same or bring any court or administrative action of any kind
questioning the propriety of the same after a period of twenty-four months from the date
of rendering.
If Participant disputes any portion of any bill issued by CMMPA under this
Agreement, Participant shall pay the full amount of the disputed charges when due, and
shall give written notice of the dispute (unless the dispute is based upon information not
reasonably available to the Participant at the time required to give notice under this
paragraph) to CMMPA not later than ninety (90) days after the date such payment is due.
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Such notice shall identify the amount in dispute and set forth a full statement of grounds
on which such dispute is based. No adjustment shall be considered or made for disputed
charges unless notice is given, as provided above. CMMPA shall review such notice in
good faith and provide Participant with a determination within thirty (30) days following
receipt of such notice. If the matter is not resolved in such manner, the matter may be
submitted to dispute resolution, as provided below. Upon final determination (whether
by agreement, arbitration, adjudication or otherwise) of the correct amount, any difference
shall be appropriately reflected as a debit or credit on the next monthly bill.
8. Nature of the Obligation to Pay. Participant shall have no right to terminate its
purchase of its Entitlement Share of the Transaction under this Agreement, nor any right
to withhold from CMMPA any payments due or to become due under this Agreement.
Participant may recover from CMMPA any amounts previously paid under this
Agreement if such amounts were paid in error or contrary to the provisions of this Agreement
or law. The obligation of Participant to pay all rates and charges established by CMMPA
under this Agreement shall not be subject to any reduction, whether by offset, counterclaim,
recoupment or otherwise and shall not be otherwise conditioned upon performance by
CMMPA of its obligations under this Agreement, or by the other Participants of their
obligations, or any other instrument or agreement.
9. Rate Sufficiency Obligation. Participant shall establish, maintain and collect
rates and charges for electric service so as to provide revenues sufficient, together with
available electric system reserves, to enable the Participant to pay CMMPA (i) all amounts
payable under this Agreement; (ii) all other operating expenses of Participant's electric
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system; and (iii) all other obligations of Participant payable from, or constituting a lien on,
the revenues of its electric system.
10. Electric System Operations. Participant covenants to operate and maintain
its electric system in a sound, businesslike manner in accordance with Prudent Utility
Practice, as defined below.
"Prudent Utility Practice" shall mean any of the practices, methods and acts (including
but not limited to the practices, methods and acts engaged in or approved by a significant
portion of the electrical utility industry at a given time) which, in the exercise of reasonable
judgment in the light of the facts known at the time the decision was made, could have
been expected to accomplish the desired result at the lowest reasonable cost consistent
with good business practices, reliability, safety and expedition. Prudent Utility Practice
is not intended to be limited to the optimum practice, method or act, to the exclusion
of all others, but rather to be a spectrum of possible practices, methods or acts. In
evaluating whether any matter conforms to Prudent Utility Practice, the parties shall take
into account (i) the fact that both the Participant and CMMPA are political subdivisions
under the laws of the State of Minnesota, with the statutory duties and responsibilities
thereof, and (ii) the terms and conditions of the PPA and other applicable Project-related
agreements.
11. Source of Payments. Participant shall not be required to make any payments to
CMMPA under this Agreement except from the revenues and other moneys derived by the
Participant from its electric department or system. Participant hereby agrees that amounts
payable by the Participant under this Agreement shall be paid by the Participant as an
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operating expense of the Participant's electric system. In no event shall CMMPA, or any
other person or entity, including any person or entity to which revenues under this
Agreement have been assigned or pledged, be entitled to look to, or seek to recover from,
any other revenues, monies or property of Participant for payment of any amounts due
under this Agreement. The obligation of Participant to make payments for services under
this Agreement shall not constitute a general obligation of Participant and Participant shall
not be required to make such payments from any source other than the revenues and funds
referred to in this paragraph. In no event shall Participant be required to make payments
under this Agreement from tax revenues or to impose any new tax or adjust any existing
tax for such purpose.
12. Default. Upon failure of Participant to make any payment in full when due under this
Agreement or to perform any obligation herein, CMMPA shall make demand upon the
Participant, and, subject to the dispute provisions of this Agreement, if said failure is not
cured within 20 days from the date of such demand it shall constitute a default at the
expiration of such period ("Default"). Notice of such demand and any subsequent Default
shall be provided to the other Participants by CMMPA.
If Participant in good faith disputes the legal validity of said demand, it shall make such
payment or perform such obligation within said 20-day period under protest directed to
CMMPA. Such protest shall specify the reasons upon which the protest is based. The
parties shall then implement the dispute resolution process provided below.
Upon occurrence of a Default, CMMPA shall use its best efforts to sell and transfer all or a
portion of such Participant’s Entitlement Share for all or a portion of the remainder of the term
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of this Agreement. The other Participants shall be given the first right to accept such portion
of the defaulting Participant's Entitlement Share on a pro rata basis in accordance with the
Participants' entitlement shares as depicted on Appendix A. Any remaining portion of the
Participant's Entitlement Share may then be made available for sale or transfer to non-
participating electric utilities. If all or any portion of Participant's Entitlement Share is
transferred pursuant to this paragraph, the Participant's Entitlement Share shall not be reduced,
and the Participant shall remain liable to CMMPA to pay the full amount owed for its
Participant Entitlement Share as if such sale had not been made, except that Participant's
liability shall be discharged to the extent that CMMPA receives payment from the purchaser
or purchasers thereof.
13. Other Participants' Payment Default. Upon a Default of any other Participants, and
except as all or a portion of such other Participants' entitlement shares may be
transferred in accordance with Paragraph 12, above, Participant's Entitlement Share shall be
automatically increased for the remaining term of this Agreement on a pro rata basis with the
entitlement shares of the other non-defaulting Participants, and the entitlement shares of such
other defaulting Participants shall be reduced correspondingly; provided, that no such
reduction shall reduce the defaulting Participants' obligations under their respective power
sales agreements; and further provided, that the sum of such step-up increases for Participant
pursuant to this paragraph shall not exceed, without consent of the Participant, an
Accumulated Maximum Step-Up Percentage, as defined and set forth in Appendix A.
Failure of Participant to make payments (or any amounts due to CMMPA for step-up
increases to Participant's Entitlement Share under the previous paragraph shall constitute a
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Default, and the fact that other Participants may have assumed the obligation to make such
payments shall not relieve Participant of its liability for such step-up payments. Any
other Participants assuming such obligation, either individually or as a member of a group,
shall have a right to enforce Participant's obligation to make step-up payments, diminished
to the extent such Participants have received value from the absorption of Participant's
increased Entitlement Share under the step-up provisions of this Agreement. To enforce
these rights, CMMPA or the other Participants, either jointly or severally, may initiate any
lawsuit, action or proceeding, at law or in equity, including suits for specific performance,
against Participant. CMMPA shall be entitled to recover from the defaulting Participant
any and all legal fees and other costs incurred by CMMPA as a result of Participant's
Default.
14. Default events other than Nonpayment. Failure of either party to adhere to any
covenant, agreement or obligation of this Agreement, other than a failure to make required
payments, shall be deemed a "Nonpayment Default". The non-defaulting party may bring
any suit, action, or proceeding in law or in equity, including for damages, mandamus,
injunction, specific performance, declaratory judgment, or any combination thereof, to
enforce such covenant, agreement or obligation against the defaulting party. Such remedies
shall be in addition to all other remedies provided for herein.
15. Records and Audit. CMMPA shall maintain adequate records to substantiate the
charges provided under this Agreement. Participant shall have the right to audit those
records, at any time during regular business hours upon reasonable advance notice. In the
event an audit shows a refund due Participant or underpayment to CMMPA, the next
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month's billing shall be adjusted accordingly. CMMPA shall be responsible for making
facility output information available to the Participant.
16. Default events other than Nonpayment. Failure of either party to adhere to any
covenant, agreement or obligation of this Agreement, other than a failure to make required
payments, shall be deemed a “Nonpayment Default”. The non-defaulting party may bring
any suit, action, or proceeding in law or in equity, including for damages, mandamus,
injunction, specific performance, declaratory judgment, or any combination thereof, to
enforce such covenant, agreement or obligation against the defaulting party. Such remedies
shall be in addition to all other remedies provided for herein.
17. Records and Audit. CMMPA shall maintain adequate records to substantiate the
charges provided under this Agreement. Participant shall have the right to audit those
records, at any time during regular business hours upon reasonable advance notice. In the
event an audit shows a refund due Participant or underpayment to CMMPA, the next
month’s billing shall be adjusted accordingly. CMMPA shall be responsible for making
facility output information available to the Participant.
18. Participant Information. Participant agrees to supply CMMPA, upon request,
with such information and documentation as may be required, including financial statements
and other information reasonably available to Participant, in order to allow CMMPA to
respond to requests for such information from any federal, state or local regulatory body, or
as may be required by the Transaction.
19. Enforcement of Obligations. CMMPA shall at all times maintain and promptly
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and vigorously enforce its rights under the Transaction against the appropriate
counterparties. In addition, CMMPA shall diligently enforce all other provisions of the
Transaction to the benefit of the Project Participants.
20. Force Majeure. Neither Participant, nor CMMPA, shall be considered in default
as to any obligation under this Agreement if prevented from fulfilling such obligations by
reason of uncontrollable forces, the term “uncontrollable forces” being deemed for purposes
of this Agreement to mean any cause beyond the control of the party affected, including but
not limited to, failure of facilities, flood, earthquake, storm, lightning, fire, epidemic, war,
riot, civil disturbance, labor disturbance, sabotage, terrorism, unavailability of fuel, and
restraint of court or public authority, which by due diligence and foresight such party could
not reasonably have been expected to avoid. Either party rendered unable to fulfill any
obligation by reason of uncontrollable forces shall exercise due diligence to remove such
inability with all reasonable dispatch.
21. Modification and Uniformity of Agreements. This Agreement shall not be subject
to termination by any party under any circumstances, whether based up on the default of any
other party under this Agreement, or any other instrument, or otherwise, except as
specifically provided in this Agreement. This Agreement shall not be amended, modified,
or otherwise changed by agreement of parties in any manner that will materially and
adversely affect the security afforded by provisions of this Agreement for the payment of
all charges associated with Participant’s Entitlement Share.
22. Notices. Any notice, demand, approval, proposal, protest, direction or request
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provided for in this Agreement to be delivered, given or made to Participant shall be deemed
delivered, given or made if delivered in writing in person or mailed by registered or certified
mail, postage prepaid, return receipt requested, addressed to the person and at the address
designated in writing filed with CMMPA by the Participant. The Participant may change
such designation, at any time and from time to time, by giving notice to CMMPA as below
provided. Any such notice, demand or request to be delivered, given or made if delivered
in writing, in person, mail, or email as above provided to the following address:
Chief Executive Officer
Central Minnesota Municipal Power Agency
7550 Corporate Way, Suite 100
Eden Prairie, Minnesota 55344
jaya@cmpas.org
billing@cmpas.org
Or such other address designated by CMMPA, as provided above.
23. Dispute Resolution. The Parties agree to use commercially reasonable efforts to
settle promptly any disputes or claims arising out of or relating to this Agreement through
negotiation conducted in good faith between senior executives or management personnel
having authority to reach such a settlement. The negotiations shall take place as soon as
practicable after, but in no event more than thirty (30) days after, a dispute arises. If after
these negotiations the dispute is not resolved, then either or both Parties may pursue any
legal remedies to the dispute at law or in equity, or pursue arbitration, as provided below.
If either party elects to pursue arbitration, copies of any such request shall be given
to all other Participants and it shall specify the issue or issues in dispute. Within ten days after
receipt of such a request CMMPA and the Participant shall confer and attempt to agree
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upon appointment of a single arbitrator. If such agreement is not accomplished, CMMPA or
the Participant may request the American Arbitration Association to appoint an arbitrator.
The arbitrator so selected or appointed shall conduct a hearing within thirty days thereafter,
unless such time is extended by agreement of CMMPA and the Participant. The
arbitrator shall notify the parties of his or her decision, stating his or her decision, stating his or
her reasons for such decision and separately listing his or her findings of fact and conclusions
of law. The arbitrator shall not have the power to amend or add to this Agreement. Subject to
such limitation, the decision of the arbitrator shall be final and binding on CMMPA and the
Participant except that either party may petition a court of competent jurisdiction for review of
errors of law. The pendency of arbitration or legal action shall affect neither the obligation of
the Participant to make any payment in full when due under this Agreement nor the obligations
of CMMPA to provide power to the Participant. The prevailing party of a disputed matter shall
be entitled to recover from the other party.
24. Applicable Law. This Agreement is made under and shall be governed by the law of the
State of Minnesota.
25. Severability. If any section, paragraph, clause or provision of this Agreement shall be
finally adjudicated by a court of competent jurisdiction to be invalid, the remainder of the
Agreement shall be unaffected by such adjudication and all of the remaining provisions of this
Agreement shall remain in full force and effect as though such section, paragraph, clause or
provision or any part thereof so adjudicated to be invalid had not been included herein.
26. Assignment of Agreement. This Agreement shall inure to the benefit of, and shall be
binding upon, the respective successors and assigns of the parties to this Agreement; provided,
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that neither this Agreement, nor any interest herein, shall be assigned or transferred or sold by
the Participant, including in connection with any sale, transfer or other disposition of
Participant’s system, except as provided herein, without the written consent of CMMPA. No
such assignment or transfer or sale shall relieve the Participant of any obligation hereunder.
27. Duly Authorized Signatories; Binding Effect of Execution. CMMPA as to its signatory
and the Participant as to its signatory each hereby represents and warrants that the person
executing this Agreement on its respective behalf is duly authorized to do so, and that, by such
execution set forth on the following page of this Agreement, such party is hereby duly and
lawfully bound by this Agreement.
28. Right of First Offer in Event of Additional Capacity at Bingham Lakes. If additional
resources such as additional wind capacity or a battery energy storage system (“BESS”), are
installed at Bingham Lakes during the term of this PPA, CMMPA shall first provide Participant
with an opportunity to receive a share of the energy, capacity, and environmental attributes
proportional to Participant’s Entitlement Share of this PPA, as recorded in Appendix A, before
offering it to other parties.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
____ day of __________, 2025.
CENTRAL MINNESOTA MUNICIPAL POWER
AGENCY
By __________________________________________________
David Meyer, President
By __________________________________________
Tim Ibisch, Secretary
KENYON MUNICIPAL UTILITIES COMMISSION
OF THE CITY OF KENYON
By: ___________________________________________
Title: Chair
By: ___________________________________________
Title: Superintendent
THE CITY COUNCIL OF THE CITY OF KENYON,
MINNESOTA
By: ___________________________________________
Title: Mayor
By: ___________________________________________
Title: City Administrator
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131
APPENDIX A
GUARANTEED PRICE, PARTICIPANTS AND PARTICIPANT ENTITLEMENT
SHARES
TABLE 1. GUARANTEED PRICE
Contract Years 1-5 $34.00/MWH
Contract Year 6 5% increase to $35.70/MWH
Contract Years 7-20 1% annual increase, rounded to the nearest
hundredth, as follows:
Year 7 $36.06/MWH
Year 8 $36.42/MWH
Year 9 $36.78/MWH
Year 10 $37.15/MWH
Year 11 $37.52/MWH
Year 12 $37.90/MWH
Year 13 $38.28/MWH
Year 14 $38.66/MWH
Year 15 $39.05/MWH
Year 16 $39.44/MWH
Year 17 $39.83/MWH
Year 18 $40.23/MWH
Year 19 $40.63/MWH
Year 20 $41.04/MWH
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132
The Participants that have entered into Power Sales Agreements with CMMPA for the Transaction
are:
1. Blue Earth Participant Entitlement and Step-Up Share: 15.3%
Nameplate Wind Equivalent = 2.3 MW
2. Fairfax Participant Entitlement and Step-Up Share: 2.0%
Nameplate Wind Equivalent = 0.3 MW
3. Glencoe Participant Entitlement and Step-Up Share: 26.7%
Nameplate Wind Equivalent = 4.0 MW
4. Granite Falls Participant Entitlement and Step-Up Share: 8.7%
Nameplate Wind Equivalent = 1.3 MW
5. Janesville Participant Entitlement and Step-Up Share: 4.7%
Nameplate Wind Equivalent = 0.7 MW
6. Kasson Participant Entitlement and Step-Up Share: 10.7%
Nameplate Wind Equivalent = 1.6 MW
7. Kenyon Participant Entitlement and Step-Up Share: 3.3%
Nameplate Wind Equivalent = 0.5 MW
8. Mountain Lake Participant Entitlement and Step-Up Share: 6.7%
Nameplate Wind Equivalent = 1.0 MW
9. Sleepy Eye Participant Entitlement and Step-Up Share: 8.7%
Nameplate Wind Equivalent = 1.3 MW
10. Springfield Participant Entitlement and Step-Up Share: 6.7%
Nameplate Wind Equivalent = 1.0 MW
11. Windom Participant Entitlement and Step-Up Share: 6.7%
Nameplate Wind Equivalent = 1.0 MW
Notes
Maximum volume (in MW) is shown above.
Because wind is an intermittent resource and all output comes from the same delivery
point, the Step-Up Percentage is calculated as a percent of the total MW subscription.
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RESOLUTION NO. 2025-31
CITY OF KENYON
COUNTY OF GOODHUE
STATE OF MINNESOTA
RESOLUTION AUTHORIZING THE EXECUTION OF
BINGHAM LAKES FACILITY WHOLESALE POWER AGREEMENT
BE IT RESOLVED by the City of Kenyon, Minnesota (hereinafter referred to as “City”) as follows:
Section 1. The City and Kenyon Municipal Utilities (“KMU”) own and operate an electric utility
system under Minnesota law and through such utility distributes and sells electric power and energy at retail;
Section 2. The City and KMU are a member of the Central Minnesota Municipal Power Agency, a
joint electric power agency formed under Minnesota Statutes Section 453.51 through 453.62 (“CMMPA”);
Section 3. The City and KMU have determined that it is in the best interests of its electric ratepayers
for the Commission to enter into a power sales agreement with CMMPA for the purchase of an entitlement
share of a long-term wind energy product between CMMPA and KMU and the City. Said contract begins
on January 1, 2026 and will continue through December 31, 2045.
WHEREAS, the City and KMU have examined all other matters it deems relevant:
NOW, THEREFORE, be it resolved that the “Power Sales Agreement Between Central Minnesota
Municipal Power Agency and the City of Kenyon, Minnesota for Purchase of Wind Energy” be hereby
approved in substantially the form presented to the City for this meeting and that the Mayor and City
Administrator are authorized to execute and deliver the Agreement to the counterparties on behalf of the City,
with such changes therein as shall be approved by the City Attorney and/or other designative representatives
of the City, the execution thereof to constitute conclusive evidence of the City’s approval of any and all
changes or revisions therein from the form of the Agreement hereby approved.
THIS RESOLUTION SHALL BE IN FULL FORCE AND EFFECT IMMEDIATELY AFTER ITS
PASSAGE AND APPROVAL AS PROVIDED BY LAW.
Adopted by the City Council of the City of Kenyon on this 9th day of December, 2025.
________________________
Donald Kirchmann
Mayor
ATTEST:
__________________________________
Scott Lehner
City Administrator
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AGENDA ITEM NO. IX.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: **Financial
AGENDA SECTION: FINANCIAL
SUBJECT: **FINANCIAL
Financial Reports and Checks for November
SUGGESTED ACTION: Approved as part of the Consent Agenda
ATTACHMENTS:
REVENUE.pdf
EXPENSES.pdf
CHECKS.pdf
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AGENDA ITEM NO. X.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Old Business
AGENDA SECTION: OLD BUSINESS
SUBJECT: 2026 Budget and Levy
1. Resolution 2025-29: Adopting the 2026 Budget and
Establishing the Tax Levy for Payable 2026
SUGGESTED ACTION: Motion Needed to adopt Resolution 2025-29
ATTACHMENTS:
Resolution 2025-29 FinalLevyandBudgetAdoption.docx
172
RESOLUTION NO. 2025-29
CITY OF KENYON
COUNTY OF GOODHUE
STATE OF MINNESOTA
RESOLUTION ADOPTING THE 2026 BUDGET AND ESTABLISHING
THE TAX LEVY FOR PAYABLE 2026
BE IT RESOLVED by the Council of the City of Kenyon, Minnesota, Goodhue County,
that the 2026 budget is adopted as presented; and
BE IT FURTHER RESOLVED, that the following sums be certified to the Goodhue
County Auditor as the amounts to be levied upon the taxable property in the City of Kenyon,
County of Goodhue County, State of Minnesota, for the year payable 2026 for the following
purposes to wit:
Net Levy
General Purpose $1,144,617
Bond Indebtedness $383,924
Total Levy $1,528,541
Adopted by the City Council of the City of Kenyon on this 9th day of December, 2025.
Donald Kirchmann
Mayor
ATTEST:
Scott Lehner
City Administrator
173
AGENDA ITEM NO. X.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Old Business
AGENDA SECTION: OLD BUSINESS
SUBJECT: Approve Posting the Line Worker/Water Operator Position
SUGGESTED ACTION: The KMU Commission is recommending approval to post the Line
Worker/Water Operator position to replace Austin Fitch who
resigned in May.
Attached is a list to justify rehiring this position that was prepared by
the Operations Superintendent.
MOTION NEEDED
ATTACHMENTS:
KMU List.docx
LINE WORKER-WATER OPERATOR JAN 24 2008.docx
174
Scott Lehner and City Council
Subject: List from KMU Supt. for reasons to replace Employee who left to go another Job.
KMU can do a lot of the work needed to keep the electric system and water system in good
working order. To do this KMU needs to have four outside employees to keep up with new and
old maintenance on the city of Kenyon's electric and water systems . When you have four
qualified employees it frees up how much time employees are on call per month or a year after
regular worked hours. At least one employee is on call after regular work hours and weekends,
with limits on response time. Every year for several reasons, a number of poles and cross arms
need changing to put in wire be it overhead and underground. Most of these change outs or work
are done without killing power or keep energized, which means that we need one line worker and
one ground person for each bucket truck, and a lot of the jobs need two trucks to do the jobs. The
water department, on a daily basis, has one employee busy with well checks and circulating
water in both tanks for freeze ups and stagette water and checking on the generation and circuit
breakers in the generation plant . KMU employees read electric and water meters monthly, which
the sewer bills are also based on water usage . The meter readings, delivering cut-offs, and doing
cut-offs, and turning back on for non-payments take 2 to 3 days per month for two people.
A few things on the list of work that needs to be done:
I need to get power into EDA property, and loop feed power into EDA property because of load
growth. Batteries on ERT reading water meters need to be changed about every month some are
not reading batteries are close to 20 years old. When they were put in the life expectancy was 15
to 20 years . Streetlights on main street need work on them, salt has been hard on them .KMU
employees are getting more and more locates each year . We also try to help homes and
businesses do locates on their wires and lines as it is hard for them to get someone to do locates
for them.
The city and KMU have a locater and GIS system, so we are trying to get everything on GIS.
The water system has yearly maintenance on fire hydrants, main breaks, and service line
problems. This is a very small list of things that need to be done yearly and daily.
Thanks,
Operation Supt. Kenyon Municipal Utilities
Randy Eggert
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KENYON MUNICIPAL UTILITIES LINE WORKER/
WATER-PLANT OPERATOR
Position Title: Apprentice Line Worker/Water Operator
Department: Electrical and Water
Immediate Supervisor's Title: Operations Superintendent
Purpose
Performs non-supervisory technical, skilled, and manual work to maintain the municipal electrical and water systems and
components; repairs and upgrades power lines, troubleshoots power outages and other problems and performs repairs, and
performs some construction; and operates a variety of specialized equipment. Work is typically accomplished through teamwork
and occurs on energized lines.
ORGANIZATIONAL RELATIONSHIPS
Reports to: Operations Superintendent
Receives work direction from: Operations Superintendent
Communicates with: Internally - Office staff, City public works employees;
Externally – Other utility departments and City residents.
Supervises: None. (Shares in responsibility for work place safety.)
ESSENTIAL FUNCTIONS
Performs Line Worker duties
Participates in meetings to discuss daily assignments and work tasks.
Performs repairs and upgrades to power lines
Constructs power lines including setting and framing poles, stringing wire, hanging and connecting transformer banks. Hooks up
new services and disconnects services. Removes old poles, lines, and transformers.
Operates a variety of specialized tools; operates vehicles requiring Class B commercial driver’s license; operates large equipment
including bucket truck, digger truck, dump truck, front-end loader and trencher, in congested areas and near energized high
voltage lines.
Performs tree trimming by high voltage lines and switching on distribution/transmission lines.
Enters and works in confined spaces with high voltage.
Performs connects and reconnects residential and commercial services; repairs broken or worn-out electrical equipment; installs
3-phase and single phase electrical meters; lifts energized conductors for pole change outs and building moves; trouble shoots
electrical problems, blinking lights, radio noise, high or low voltage.
Maintains vehicles, tools, and other equipment including doing oil changes, vehicle washing, and application of decals; follows
lock-out/tag-out procedure when needed.
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ESSENTIAL FUNCTIONS (cont.)
Uses digger/pole-setting truck; load and unload line materials.
Carries out terminations: prepares high voltage cables to operate in a limited space following listed procedures and ensuring
proper measurements and operation of specific tools such as crimpers, strippers, cutters and cleaners are followed.
Works from aerial devices during outages; locates faults and repairs failed electrical equipment after storms or other events;
operates high voltage switches; operates energized conductors in high voltage cabinets.
Performs maintenance activities on electrical system; repairs property and cleans up work site; repairs streetlights within the City.
Conducts underground utility locates.
Digs up underground utilities before trencher.
Performs water-related duties
Maintains municipal water system and components: conduct daily and weekly system and component checks, monitors City
wells and water tower and determines repair work needed making minor repairs as appropriate or scheduling/overseeing work
done by contractors; and collects and provides water flow data.
Reads water meters and installs/repairs as necessary, bills for new meters and collects outstanding water bills; and carries out
water shut-offs and turn-ons as needed.
Participates in routine cleaning and maintenance tasks such as repairing/flushing hydrants, flushing lines, back washing filter
beds, and maintaining a variety of equipment.
Tap water mains for new services.
Operates power plant
Maintains generation units: performs required maintenance, a variety of tests, inspections and cleaning for plant components and
equipment. Maintains plant facility buildings.
Operates generation units when directed: prepares engines and performs visual inspections for start-up; starts engines making
manual and other adjustments and monitors for normal operation; keeps necessary logs and paperwork; and takes engine off-line
or shutdowns when appropriate.
Monitors electrical loads: takes readings and calculates totals; responds to abnormalities; implement load control methods and
informs large industrial users of load status; operates switchgear and monitors high voltage transformers.
Keeps up-to-date on topics such as safety and hazardous materials through meetings, seminars, and workshops.
OTHER DUTIES AND RESPONSIBILITIES
Assists City’s public works department as workload and time allows. Duties include plowing snow, tree trimming, heavy
equipment assistance, and sewer line repairs.
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Works with outside contractors and may provide some direction to seasonal help.
Performs other related duties as assigned by Supervisor or as apparent.
REQUIRED KNOWLEDGE, SKILLS, AND ABILITIES
Knowledge of electricity, municipal electrical system and components
Knowledge of municipal water distribution system and components.
Knowledge of water technology, chemistry, and treatment.
Knowledge of procedures, rules and regulations of electrical industry.
Skill to operate a wide variety of high voltage tools and equipment and maneuver them around
high voltage lines.
Skill in operating a variety of equipment, tools, and machines.
Ability to read and understand maps and symbols.
Ability to work in adverse conditions and exert moderate to considerable physical effort.
Ability to organize, plan and carry out assignments.
Ability to work safely as a team.
Ability to recognize and repair problems within the distribution (electric and water) systems.
Ability to perform CPR/first aid and conduct a bucket rescue.
Ability to respond to emergencies and perform work at night and during inclement weather.
Machines, tools and equipment used: bucket trucks, digger truck, pick-up truck, front-end loader and trenchers, reel and pole
trailers, crimping/stripping/splicing tools, jack hammer, cover up and rubber equipment, chain saws, water pumps, chemical
instruments, switch gear, transformers, snow plows, street sweeper, lawn mower, fresh air pumps, gas detectors, dump trucks,
tractors, skid steers, cement tools, and numerous hand and power tools.
MINIMUM QUALIFICATIONS
Completion of vocational line worker course and two years of experience working on an electrical distribution system. Class D
water license. Ability to perform work requiring considerable physical effort. Mechanical background and some related
experience. Valid MN Class B commercial driver’s license.
WORKING CONDITIONS
Work involves regular exposure to energized power lines and routine exposure irritant/fumes, hazardous chemicals (such as
chlorine, fluoride, polyphosphates, and oils/lubricants), temperature extremes, and noise. Considerable physical effort is required
involving many types of movement such as lifting, bending/stooping, twisting/turning, pushing/pulling, and crouching/kneeling.
Large and fine motor skills are necessary as well as the full range of senses, except taste, are used depending on task. Performs
manual digging. Works in confined spaces. Works at heights and climbs in/out of bucket truck (infrequent climbing of poles)
with a number of work tasks carried out overhead. Position requires weekend work, work beyond normal hours, as well as work
during call outs.
Effective January 23, 2008
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AGENDA ITEM NO. XI.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: CEDA 2025 Contract
The city council has annually contracted with "Community and
Economic Development Associates" (CEDA) to staff the EDA. Todd
Kieffer is the CEDA employee assigned to the city. The cost to have
Todd continue to work two days a week for the city would be
$55,053.00. This contract would begin January 1, 2026 and end
December 31, 2026. The 2026 proposed contract is attached.
SUGGESTED ACTION: Motion Needed to Approve the Contract.
ATTACHMENTS:
2026 CEDA Contract Kenyon.pdf
179
1500 South Hwy 52
PO Box 483
Chatfield, MN 55923
Phone - 507.867.3164
www.cedausa.com
Contract for Professional Services
This contract is made and entered into by Community and Economic Development Associates, a Minnesota
nonprofit corporation exempt from income tax as an organization operated for charitable purposes within
the meaning of Internal Revenue Code section 501(c)(3), hereafter “CEDA”, and the Economic
Development Authority of the City of Kenyon, an agency or affiliate of a political subdivision of the State
of Minnesota, hereafter “the Authority”, to define the terms by which CEDA shall provide technical and
management expertise services to the Authority.
I. Agreement scope and purpose. The Authority hereby retains CEDA to perform to its benefit the
services described in paragraph II, to the end of the Authority more effectively accomplishing:
* Prevention and/or combat of community and neighborhood deterioration and revitalization of
deteriorated neighborhoods;
* Attraction and/or retention of businesses that would not, but for the assistance provided,
choose to locate/remain in the area;
* The securing of businesses who will be required to provide jobs for unemployed and
underemployed residents of the community; and
* The expansion of business opportunities for minority entrepreneurs and other entrepreneurs
that are viable business opportunities to enhance the well-being of the community and/or for
businesses who are unable to obtain financing from conventional sources
II. Services to be provided by CEDA. CEDA agrees to provide technical and management expertise in
the form of staff and materials to the Authority. Staff’s services, and associated materials, will be
provided in order to facilitate and support the accomplishment of the Authority’s undertakings to the ends
described in the preceding paragraph. CEDA’s staff and materials shall be made available toward efforts
in the following specific arenas of the Authority’s needs and operations:
* Accessing of grantor funding for the Authority’s economic development programming
* Providing loan packaging services for the Authority’s business assistance programs
* Administering local, regional and state revolving loan funds, if appropriate
* Implementing and/or drafting the Authority’s Economic Development Annual Work Plan(s)
* Planning, facilitating, and/or directly conducting the Authority’s community and business
development projects, including as necessary, staffing those projects as directed by the
Authority in consultation with CEDA. These efforts shall include (but are not limited to),
the following:
* seeking city and county involvement
* developing relationships and partnerships to enhance the Authority’s goals
* preparing economic development guidelines
* promoting the use of local assets to support and promote value-added processes and
unique based businesses
* Assisting with local surveys related to business and industry, community, and land and
buildings
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1500 South Hwy 52
PO Box 483
Chatfield, MN 55923
Phone - 507.867.3164
www.cedausa.com
* Assisting with the Authority’s economic development marketing, business outreach, and
business expansion and retention efforts
* Coordinating and hosting forums in which the Authority’s economic development
programming are open for the public’s review
III. Obligations of the Authority.
A. The Authority shall reimburse CEDA for staff time provided at the not to exceed rate of $55,053.
This is based on an average of sixteen hours per week. This rate will be prorated accordingly if the
start date of this Agreement is modified by mutual agreement of CEDA and the Authority.
B. Materials, conferences, meetings and the like shall be paid for on a unit basis agreed to by the
Authority in writing prior to the provision of the materials.
C. The Authority shall be responsible to provide payment to CEDA within 30 days of the submission
of each invoice provided by CEDA.
IV. Obligations of CEDA.
A. CEDA is performing services as an independent contractor. Accordingly, the provision of staff by
CEDA to provide technical and management expertise to the Authority under this Agreement neither
creates a release of CEDA staff to employment at the Authority nor makes such staff subject to
supervision by the Authority.
B. CEDA has no authority or right, express or implied, to assume or create any obligation or
responsibility on behalf of the Authority or to bind the Authority in any manner. CEDA will not
represent the contrary, either expressly or implicitly, to anyone.
C. CEDA is solely responsible for payroll tax responsibilities related to each of its staff persons
whose time is provided under this Agreement and shall acquire and maintain necessary insurance
related to their efforts under this Agreement, including carrying workers’ compensation insurance
coverage at all times. CEDA shall supply the Authority with certification of such coverage.
D. CEDA shall be responsible to invoice the Authority for staff time and materials provided under
this Agreement on a periodic basis, no less frequently than quarterly.
E. CEDA shall perform all services under this Agreement in compliance with applicable state and
federal requirements.
V. Period/Termination. The term of this Agreement is yearly, commencing January 1, 2026 and ending
December 31, 2026. The Agreement may be terminated earlier in its term upon 30 days’ written notice by
CEDA to the Authority or by the Authority to CEDA. Upon termination, the Authority shall be liable to
pay CEDA for services performed up to $55,053 plus materials and any discounts provided under this
Agreement prior to and through the effective date of termination, unless otherwise specifically agreed by
the parties in writing.
VI. Construction of Agreement. This Agreement is to be performed and construed under Minnesota
law, and supersedes any and all prior agreements and contains the entire agreement of the parties.
181
1500 South Hwy 52
PO Box 483
Chatfield, MN 55923
Phone - 507.867.3164
www.cedausa.com
CITY OF KENYON
By __________________________
Its _________________________
Date _______________________
By __________________________
Its City Administrator
Date ________________________
COMMUNITY AND ECONOMIC DEVELOPMENT ASSOCIATES
By
Its CEO/President
Date October 23, 2025
182
AGENDA ITEM NO. XI.B
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: Resolution 2025-30: A Resolution Committing Capital Fund
Balance
General accounting standard (GASB 54) requires all public entities to
set year
end Capital fund balances. This action is required before the end of
the
current year contingent on audited final numbers. Therefore, the
resolution
included in the meeting packet should be adopted by the Council.
The final
year-end capital fund amounts will not be known until the 2025 audit
is
completed.
SUGGESTED ACTION: Motion Needed
ATTACHMENTS:
Resolution 2025-30 Committing Capital Fund Balances.docx
183
RESOLUTION NO. 2025-30
CITY OF KENYON
COUNTY OF GOODHUE
STATE OF MINNESOTA
RESOLUTION COMMITTING CAPITAL FUND BALANCES
WHEREAS, The Governmental Accounting Standards Board’s Statement #54 definition
of revenue funds states that special revenue funds are used to account for and report the proceeds
of specific revenue sources that are restricted or committed to expenditures for specific purposes
other than debt service or capital projects; and,
WHEREAS, the City of Kenyon has previously adopted Administraive Policy #23
acknowledging its authority to commit, assign, or evaluate existing fund-balance classifications
and identify the intended uses of committed or assigned funds; and
WHEREAS, the term “proceeds of specific revenue sources” establishes that one or more
specific restricted or committed revenues should be the foundation for a special revenue fund and
comprise a substantial portion of the fund’s revenues; and,
WHEREAS, investments earnings and transfers from other funds do not meet the
definition of a specific revenue source; and,
WHEREAS, the City will provide additional amounts to the Council following the annual
audit and, has determined to commit capital fund balances for the City in the amount determined
annually by the audit, and,
NOW, THEREFORE, BE IT RESOLVED, that the City of Kenyon, hereby commits to
utilizing portions of its capital fund balance, as indicated by the committed fund classification in
its financial statements, for the following purposes, as shown in appendix A:
Adopted by the City Council of the City of Kenyon on this 9th day of December, 2025.
Donald Kirchmann
Mayor
ATTEST:
Scott Lehner
City Administrator
184
EXHIBIT A
FUND SPECIFIC REVENUE SOURCES COMMITTED FOR
203 Fire/First Tax Levy, Township Fire Contracts, County, Fire Department and
Responders State and Federal aid, grants and First Responder
reimbursements, fire suppression operations, maintenance,
reimbursements, donations specific to the Fire and improvements.
Department or First Responders, and training
reimbursements.
204 Library Tax Levy, county contract through SELCO, Library operations,
donations specific to the library, and fines maintenance, and
improvements.
205 Economic Tax Levy, EDA loan repayments, donations Activities to promote
Development specific to the EDA, and City property lease economic development
Authority payments,
185
AGENDA ITEM NO. XI.C
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT:
2026 Tobacco License Renewals
1. Kenyon Market
2. River Country Co-Op (Circle K)
3. Kenyon Municipal Liquor Store
4. Dollar General
5. Kenyon Tobacco & Vape
This is the yearly renewal for the tobacco licenses in the city.
SUGGESTED ACTION: Motion Needed
ATTACHMENTS:
Tobacco Licenses.pdf
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188
189
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AGENDA ITEM NO. XI.D
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT:
Governance in Action Conference
SUGGESTED ACTION:
ATTACHMENTS:
Governance in Action.pdf
192
193
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AGENDA ITEM NO. XI.E
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: Administrative Policy #39: Paid Time Off Cash-Out
SUGGESTED ACTION: MOTION NEEDED
ATTACHMENTS:
ADMINPOLICY#39 Paid Time Off Cash-Out and Request Form.docx
12.31.25 Forcasted Time Off Balance and Liability.xlsx
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CITY OF KENYON
ADMINISTRATIVE POLICY #39
PAID TIME OFF CASH-OUT
1. Purpose:
The City of Kenyon will allow employees to annually cash out any accrued, unused Paid
Time Off (PTO) that exceeds 80 hours. This policy will outline the process for employees to
cash out accrued, unused PTO while still employed.
2. Eligibility:
Employee Type: This policy applies to all employees who are eligible for paid time
off benefits.
Minimum Balance: Employees must retain a minimum of 80 hours of PTO in their
balance after the cash-out.
Employment Status: Employees must be in good standing with no disciplinary
actions in the past 12 months.
3. Cash-out Limits
Accrual Requirement: Employees can only cash out PTO that has been accrued, and
only hours above the minimum required balance are eligible.
Payment: PTO will be paid out at the employee’s current rate of pay for the year it is
being cashed out. For example, if an employee cashes out PTO in December 2025, it
will be paid at their 2025 rate. Cash-out payments will be subject to all applicable
taxes and withholdings. PTO payout is not PERA eligible and will be paid on a
separate check in the last payroll of the year.
Frequency: Cash-out requests will only be processed on the last payroll in December
each year. The request form must be submitted to payroll by December 1 each year.
4. Record Keeping
City Administration will maintain records of all cash-out requests and approvals. Employees
are responsible for tracking their accrued PTO balances and ensuring compliance with the
minimum balance requirement before initiating a cashout request.
196
Employee Authorization to Cash Out Paid Time Off
I, _______________________, authorize my employer, _________________, to cash
out _______ hours of my accrued paid time off balance on the last payroll in December.
I understand that these hours will no longer be available to me to use and that I may be
required to take unpaid leave in the event that I cannot work and don’t have any vacation
or PTO remaining for the calendar year.
Employee Signature _______________________________
Date __________________________________
City Administrator/HR Signature __________________________________
Date ___________________________________
197
Position ID Home Department
Position
Code
Status Policy Name [Time
Carryover
Off Transaction
Earned/Adjusted
Summary]
NF9000101 609609 Active Vacation 102.00 50.00
NF9000112 602602 Active Vacation 118.00 72.00
NF9000181 603603 Active Vacation 48.60 53.20
NF9000106 602602 Active Vacation 150.75 70.00
NF9000111 100100 Active Vacation 176.00 48.00
NF9000132 101101 Active Vacation 152.50 32.00
NF9000182 603603 Active Vacation 78.66 8.00
NF9000183 603603 Active Vacation 109.95 79.80
NF9000169 100100 Active Vacation 165.60 0.00
NF9000118 602602 Active Vacation 50.50 24.00
NF9000102 204204 Active Vacation 90.00 10.00
NF9000133 101101 Active Vacation 76.00 40.00
NF9000187 101101 Active Vacation 0.00 24.00
198
Allowed Transferred Taken Expired Carryover Hourly Rate Balance Liability
0.00 0.00 (33.00) 0.00 33.35 119.00 3,968.65
0.00 0.00 (45.00) 0.00 32.06 145.00 4,648.70
0.00 0.00 0.00 0.00 51.92 101.80 5,285.46
0.00 0.00 (97.50) 0.00 51.55 123.25 6,353.54
0.00 0.00 (42.50) 0.00 36.64 181.50 6,650.16
0.00 0.00 (24.00) 0.00 38.43 160.50 6,168.02
0.00 0.00 0.00 0.00 32.09 86.66 2,780.92
0.00 0.00 (98.00) 0.00 41.37 91.75 3,795.70
0.00 0.00 0.00 0.00 63.34 165.60 10,489.10
0.00 0.00 0.00 0.00 29.67 74.50 2,210.42
0.00 0.00 0.00 0.00 33.91 100.00 3,391.00
0.00 0.00 (8.00) 0.00 50.30 108.00 5,432.40
0.00 0.00 0.00 0.00 32.56 24.00 781.44
199
Difference from 80 Potential Payout
39.00 1300.65
65.00 2083.9
21.80 1131.856
43.25 2229.5375
101.50 3718.96
80.50 3093.615
6.66 213.7194
11.75 486.0975
85.60 5421.904
(5.50) -163.185
20.00 678.2
28.00 1408.4
(56.00) -1823.36
$21,766.86
200
AGENDA ITEM NO. XI.F
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT: Auditing Services RFP
1. BerganKDV
2. CliftonLarsonAllen
SUGGESTED ACTION: Two quotes for auditing services are attached.
MOTION NEEDED
ATTACHMENTS:
Bergan Proposal - FINAL.pdf
CLA Proposal 2025.pdf
CLA Dollar Cost Bid 2025 final.pdf
201
PROPOSAL FOR AUDIT SERVICES
City of Kenyon, MN
November 17, 2025
202
PROPOSAL PREPARED ESPECIALLY FOR CITY OF KENYON, MINNESOTA
Table of Contents
Profile of Firm Proposing:
Transmittal Letter ............................................................................................ 1
Executive Summary .......................................................................................... 3
Firm Profile ................................................................................................... 5
Value-Added Services Beyond the Audit .................................................................. 9
Certifications and Independence .......................................................................... 10
Proposal for Audit Services:
Dedicated Service Team .................................................................................... 11
Audit Approach and Timeline .............................................................................. 14
Fee Information.............................................................................................. 18
Client References ........................................................................................... 19
PlainSight ..................................................................................................... 21
Peer Review .................................................................................................. 22
Client Requested Documents:
Proposer Guarantees and Warranties ..................................................................... 24
Schedule of Professional Fees and Expenses for the Audit ............................................ 25
CREATIVEPLANNING.COM
203
PROPOSAL PREPARED ESPECIALLY FOR CITY OF KENYON, MINNESOTA
Transmittal Letter
Scott Lehner, City Administrator
City of Kenyon
709 Second Street
Kenyon, MN 55946
Dear Scott,
On behalf of BerganKDV, I am pleased to submit this proposal for audit services for the City of Kenyon,
Minnesota. We appreciate the opportunity to bid these services.
The attached proposal addresses the information you requested, including the unique qualifications of
BerganKDV, the depth and breadth of the services we will provide your City, and our commitment to
providing the highest-quality work through a process that is both efficient and effective.
Our services would include, but not be limited to, the following for the fiscal years ending
December 31, 2025, 2026 and 2027.
1. Performing an audit of the City in accordance with auditing standards generally accepted in the
United States of America, Government Auditing Standards, and other federal, state, and local
requirements, as applicable.
2. Providing an opinion on the City's basic financial statements and an "in-relation to" report on the
supporting schedules.
3. Providing an in-relation-to opinion on the City’s schedule of federal expenditures, if applicable.
4. Preparing the City's financial statements and the related note disclosures and supplemental
schedules.
5. Reviewing, documenting, and providing recommendations on improving the City's internal control
and financial operations.
6. Providing verbal and written guidance on new and ongoing Governmental Accounting Standards
Board (GASB) Statements.
7. Meeting with City finance personnel and administration to review the financial statements and a
draft of our Communications Letter.
8. Presenting the financial statements and Communications Letter to the City Council.
9. Providing bound copies of the report to the City, including a searchable pdf of the report, and the
communications letter.
10. Being available during the year to provide a wide range of consulting services and answer your
questions as they arise.
Our Government Market team is located throughout BerganKDV offices. These individuals work only on our
governmental entity clients. We have outlined your upper management team in the “Qualifications”
section. In addition to these individuals, we will utilize associate level individuals. We will determine a mix
of on-site and remote auditing based on preferences of your team. As further discussed in the Audit
Approach section, we utilize Suralink, a workflow management software that improves efficiency by
streamlining our audit request process.
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We will work with your representatives to schedule specific fieldwork dates to ensure we are meeting your
deadlines. The undersigned is a partner and is authorized to make representations for the firm. This
proposal is a firm and irrevocable offer for 60 days.
Sincerely,
Andrew Grice, CPA
Bloomington, MN // 952.563.6862 // andy.grice@creativeplanning.com
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Executive Summary
Here are a few benefits of working with BerganKDV:
A Responsive Firm Who is there for You. We believe we are your auditors not just at year-end but
throughout the year. This means being there for you when issues arise, available when you need us
and being responsive to your requests. We demonstrate this through same-day callbacks and in-
depth research to get to the heart of your questions. We take a collaborative approach in all our
interactions with you.
Respect Your Time. We have the resources to perform your audit and meet with your board to
ensure you receive information in a timely manner. We are clear with you on things we need for
the audit including timing and deadlines. In addition, at BerganKDV, we strive for a three-week
turnaround, from fieldwork to meeting-ready documents. You will have a draft copy of your
financial statements and communication letter within this timeframe.
Effective Communication. BerganKDV has set high internal standards for responding and
communicating with our clients. Providing support exactly when and where you need it is the value
our team brings. Your time is valuable; we will be clear and efficient in our communications, work to
eliminate surprises and meet agreed-upon deadlines. We have a proven track record of performing
client’s requests based on their preferred timetable and delivering reports to our clients in advance
of deadlines. Our staff will work patiently with your team for effective results.
A Personalized Approach to the Audit. Our audit process includes an annual planning meeting with
you to discuss any challenges and changes in the City over the past year, and to build future
strategies. We enjoy learning about your City and will work to understand your City from an overall
operational standpoint. We are not afraid to "roll up our sleeves" and delve into the details of your
operations. This allows us to personalize our audit approach each year, bring best practices, and
be a resource for you when it comes to GASB and other reporting standards.
Value for Time and Fees Invested. Receiving value for your fee investment is critical in local
government. In addition to offering highly competitive fees, we work diligently to not incur fee
surprises. We encourage frequent calls throughout the year, always at no cost to you. Our goal is
to be your first call when you experience organizational challenges, and our current clients report
that this has helped them save time, reduce costs, and build confidence when solving issues.
Government Finance Expertise. Your audit firm needs to understand how municipalities operate
and how the environment in which they function is regulated. Your audit firm also needs to
understand the intricacies of these entities and how decisions that are made and affect the
community. BerganKDV audit professionals are dedicated to your industry beyond the audit; we
strive to be your trusted resource in all areas.
Innovative thinking and solutions driven. When working with BerganKDV, clients find that we focus
on earning their trust by being actively involved and focused on helping them be successful in all they
do. We solve problems. Whether that problem is technology, financial or operations related, we will
find a way to help.
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If there are any matters not adequately covered in this proposal, please feel free to contact us. Thank you for
the opportunity to respond to your proposal request.
Sincerely,
Andrew Grice, CPA
Bloomington, MN // 952.563.6862 // andy.grice@creativeplanning.com
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Firm Profile
Who is bergankdv? We’re glad you asked!
We have an extensive background in working with clients through a strategic approach in all aspects; we don’t just keep
pace with the trends; we stay ahead of the curve. We explore new ways to reduce costs and operate more efficiently.
THE BACKSTORY
The history of our firm began in 1945, and since the beginning, BerganKDV has been firmly rooted in
community. Today we are a Top 100 Firm, we operate in multiple states in nine different offices, employ
over 450 experts, and service clients across the country. As we continue to grow, we acknowledge that we
are not in the business to provide one-size-fits-all solutions. Every client is different – from business problems
to personal preferences. We invest the time to understand your needs and customize our services and
solutions to meet them. Our playbook consists of business advisory, tax, assurance and accounting, workforce
management, technology, wealth management and turnaround management services. Sure, we offer a robust
and competitive service portfolio and notable processes but what really makes us different?
As of July 1, 2023, BerganKDV has joined forces with Creative Planning, LLC, one of the largest and most
highly respected independent wealth management firms in the country. BerganKDV will continue to provide
audit and other attest services to clients, while creative planning business services entities will provide tax
advisory and consulting services to clients. We remain committed to serving governments with our renowned
industry expertise, all while having greater resources and expanded connections to further achieve our
client's unique goals. From tax and audit to payroll and strategic planning, we offer an array of business
services to transform organizations with a long, tenured understanding of governments.
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OUR PEOPLE
Relationships are at the core of everything we do, and our products and services are designed to meet the
specific needs of our clients. When working with BerganKDV, clients find that we focus on earning their trust
by being actively involved and focused on helping them be successful in all they do.
PERSONALIZED SERVICE
Our philosophy is to provide timely, quality services that exceed the expectations of our clients. Outstanding
client service requires a successful team effort within our firm and with our clients. Providing outstanding
service involves enthusiastic, dependable and knowledgeable personnel who are responsible for knowing,
understanding and caring about our clients. Our firm believes that outstanding service is a continual process
that is refined and enhanced with each client contact.
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ENGAGE© | Our Proven Value Creation Process
We have aligned our team around our core values and are driven in our commitment to help clients and team
members achieve their potential. We help clients reach their goals by utilizing our value creation process.
Results of this process have led to more robust client relationships – deeper trust, enhanced communication
and minimization of time for all. This process is a key component of our strategy in supporting and helping
our clients further their organizations.
Our Business Lines
BerganKDV has a strong bench of resources and expertise available based on needs of the client. This ensures
the most effective and efficient results are delivered!
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Community Support
At BerganKDV, we believe in giving back. We support the organizations our people and clients are actively
involved with. On average, we support multiple events a week in our communities. This year we supported
over 35 civic, 15 health and wellness, 10 youth and four arts organizations. BerganKDV's culture promotes
community involvement by providing employees with paid volunteer time off.
Vision And Values
We are powered by people who do business the Midwest way delivering comprehensive business, financial
and technology solutions. Our firm consists of highly talented individuals that put relationships before
business deals and clients before profits. Our values drive our decisions.
Our Focus and Our Promise
Empowering people and creating a wow experience for our clients.
We go beyond so you can DO MORE.
We continue to align BerganKDV team member core values and sense of purpose with our firm core values
and mission. We hire towards our core values and manage performance through real time feedback
corresponding to our core values. We’ve found that this work results in more open conversations at
BerganKDV which impacts employee engagement and client care.
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Value Added Services
Our goal is to be your first call when you experience organizational challenges. We believe this can occur
only when a relationship is developed and nurtured through strong communication and a thorough
understanding of your mission, programs, and operations. We are unwavering in our commitment to our
clients and make it our mission to ask the right questions, listen actively, understand your expectations, and
deliver results. You can expect a partnership with professionals who value trust, integrity, and relationships.
Extensive Governmental Auditing and Consulting Experience
With over 50 years of experience serving the government community, we have a great appreciation for the
unique issues and complexities that you face. We currently work with over 150 governmental entities,
including cities, charter schools, school districts, colleges and universities, and other governmental entities,
providing a wide array of services including accounting, auditing, and consulting services.
We are dedicated to keeping informed of significant developments in the government community and the
impact of those developments on our clients. We accomplish this through formal training, including annual
seminars, workshops and professional sponsored classes on governmental accounting, auditing, and reporting
requirements. We are a member of the Governmental Audit Quality Center of the American Institute of
Certified Public Accountants. The Center maintains standards for quality control in governmental audits for
CPA firms nationwide.
In addition, many employees of our firm are members and have participated as instructors and speakers at
seminars. These presentations have included GASB implementations, auditing standards updates, levy
process and related accounting, property taxes and general fund budget, budget issues related to the state
budget deficit, accounting and finance policies and procedures and fraud.
Peer Review
Our firm is a member of the Private Companies Section of the AICPA Division for CPA Firms. This Division was
founded in 1977 by the AICPA to promote CPA excellence and to provide a voluntary, objective means of
monitoring adherence to professional standards. Each member firm is required to periodically subject its
audit and accounting practice to a comprehensive quality review by specially trained outside CPAs. Our last
such review was just performed recently, and we received a clean report on our practices and methods. A
copy of our last peer review report is included on page 23.
Assistance with Certificate of Achievement
Our firm is very familiar with the requirements necessary to obtain the Certificate of Achievement. We
currently assist several of our clients with preparation of their annual comprehensive financial report to
meet the criteria for GFOA’s Certificate of Achievement for Excellence in Financial Reporting. We assisted
several of these clients with their initial application, and all were successful on their initial and all
subsequent submissions.
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Certifications and
Independence
We recognize when we audit a governmental entity, we are required to be familiar with certain rules,
regulations, and requirements and, as a firm we are required to meet certain requirements. In that regard,
we make the following affirmations:
Our firm meets the independence requirements relating to the City defined by auditing standards
generally accepted in the United States of America and Government Auditing Standards issued by
the Comptroller General of the United States.
Our firm and all assigned key professional staff are properly licensed to practice in the State of
Minnesota.
Our firm is a member of the American Institute of Certified Public Accountants and the Minnesota
CPA Society.
Our firm has never had a report rejected or classified as substandard by any state or federal agency,
or by the Government Finance Officers Association.
Our firm has never had and currently does not have any pending disciplinary actions or investigations
for alleged improper, fraudulent, disreputable, or unfair activities against our firm with state
regulatory bodies or professional organizations.
We accept the professional obligation concerning the American Institute of Certified Public
Accountants Interpretation 501-3 “Failure to Follow Standards and/or Procedures or Other
Requirements in Governmental Audits.”
Our professional personnel have received adequate continuing education to follow Government
Auditing Standards and have received adequate continuing professional education over the past
three years.
Our firm is an equal opportunity employer and does not discriminate in employment of persons upon
the basis of race, color, creed, national origin, sex, age, or physical handicap, and have an
affirmative action plan in place.
We do not expect any potential audit problems and are not aware of any conflicts of interest about
any work performed by the firm for the City.
We acknowledge and have adequate personnel to comply with the audit schedule provided in the
request for proposals.
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Proposal for Audit Services
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Dedicated Service Team
Andrew Grice, CPA, Partner
Education: Bachelor of Science in Accounting from St. Cloud State
University, graduated Cum Laude
Experience, Professional and Civic Activities:
Eighteen years of experience with financial reporting in accordance with GAAP, ACFR
requirements, analysis of internal control, performing audits of financial statements and single
audits in accordance with OMB Circulars and Uniform Guidance.
Responsible for the planning, fieldwork and reports for numerous audits of cities, school districts,
utilities, charter schools, and other government entities.
Attends continuing education, workshops and conferences on city and school district accounting
and reporting requirements on an annual basis that qualifies as “yellow book” continuing
professional education and on governmental and single audit accounting, auditing, and reporting.
Extensive use of computer and software applications to assist in the preparation and performance
of the audit process.
Presents audit reports, financial statements, and communications letters to management, school
boards and city councils.
Instructor for the Minnesota Municipal Clerks Institute Fund Accounting and Budgeting course.
Instructor for the Government Finance Officers Association Intermediate Governmental
Accounting course.
Presenter of the annual ACFR Comment Review for the Minnesota Government Finance Officers
Association.
Presenter at the Minnesota Society of CPAs Audit Conference in 2023 and 2024.
Develops internal training for BerganKDV government auditors.
Certified Public Accountant, licensed to practice in the State of Minnesota.
Minnesota Society of Certified Public Accountants.
American Society of Certified Public Accountants.
Minnesota Association of School Business Officials.
Minnesota Government Finance Officers Association.
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Dedicated Service Team
Dustin Opatz, CPA, Director
Education: Bachelor of Science in Accounting from St. Cloud State University
Experience, Professional and Civic Activities:
Ten+ years of experience with financial reporting in accordance with GAAP, ACFR requirements,
analysis of internal control, performing audits of financial statements and single audits in
accordance with OMB Circulars and Uniform Guidance
Responsible for the planning, fieldwork and reports for numerous audits of cities, school districts,
charter schools, and other government entities
Attends continuing education, workshops and conferences on city and school district accounting
and reporting requirements on an annual basis that qualifies as "yellow book" continuing
professional education
Attends workshops on governmental and single audit accounting, auditing and reporting on an
annual basis
Financial statement and communication letter preparation
Extensive use of computer and software applications to assist in the preparation and performance
of the audit process
Certified Public Accountant, licensed to practice in the State of Iowa
Presenter at the Government Finance Officers Association Annual ACFR Review,
and BerganKDV sponsored seminars
Professional and Civic Activities
Iowa Society of Certified Public Accountants
American Institute of Certified Public Accountants
Minnesota Government Finance Officers Association
Minnesota Association of School Business Officials
Iowa Association of School Business Officials
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Dedicated Service Team
Office Performing Audit
As mentioned earlier in the Letter of Transmittal, our governmental team is located throughout BerganKDV’s
offices. This team consists of 6 audit partners, 2 audit directors, 6 audit managers/supervisors, 7 audit
seniors and 17 audit associates, all that primarily focus on governmental entities. In addition, we have
another partner, a manager, and 8 associates that all have experience working on governmental audits. This
team will allow us to meet your reporting deadline.
Commitment to Staff Continuity and Training
To keep continuity and efficiencies high, we believe that consistent team members are advantageous for
both our firm and your organization. We pride ourselves on maintaining the right balance of continuity on
each of our engagements to ensure a “fresh” look at the annual audit process. Rotation of senior level staff
only occurs after the merits of such rotation have been discussed and approved by your organization.
Independence
Our firm has no conflict of interest regarding any other work performed by our firm for your organization.
Our firm meets the independence requirements relating to your organization as defined by auditing standards
generally accepted in the United States of America. We annually review independence related to all our
client relationships as part of our internal control compliance process.
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Audit Approach and Timeline
Our goal for you is to create value and to minimize surprises. We do this through a
specific, well planned audit. What makes BerganKDV unique from other firms is that we continually
improve our audit process beyond what is expected by our profession. A few of the BerganKDV advantages:
♦ Collaborative Audit Process. We see the audit process as a joint effort
with you and BerganKDV. We want to work together to make it as
painless as possible. Beyond Expectations
BerganKDV takes a four-phased
A comprehensive view of the City’s financial health. Through our audit approach that gets results by:
extensive government experiences, we understand a City’s health
is not only about the finances. The vision, mission and ♦ Leveraging what is working well.
programming provide the blueprint for the City’s direction. We
♦ Focusing on pre audit planning,
review this information in relation to the financial statements and
provide our observations based on a comprehensive view of the collaboration, and
City’s health. communication.
♦ Staying accountable to a
Technology resource on internal controls. Technology experts schedule.
from the BerganKDV Technology Group can assist in evaluating your
technology controls. Their expert advice has proven to be a ♦ Meeting with you and your
valuable resource as they answer technical questions and offer team to ensure every detail has
specific recommendations. been finalized and the audit is
complete.
Supervisors, managers and partners on-site. The involvement of
our supervisors, managers and partners in the field is essential to ♦ Exchanging information
being a trusted partner and delivering an exceptional client regarding our performance,
experience. We believe it is important to be on-site and available opportunities to enhance
to answer questions. This also allows our managers and partners to experiences and future strategic
review documentation throughout the process. opportunities.
Meeting communications. Our presentations are designed to
capture information that is useful and meaningful. Our
presentations are focused on audit results, trends, and other information relevant to your City and
related entities, not details of the financial statement amounts.
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Our audits are designed to focus our energy and our audit tests on the areas of your operations that contain
the most risk. This equates to a better product for the City.
Phase One – Initial Planning and Program Development (January/February)
Our main objective is to get to know the City as a resident or employee would. We want to understand not
only your finances, but also your operational goals and objectives. What makes you City unique? How can
that knowledge help us perform the best audit possible? When those questions are answered, we know we
achieved our goal for Phase One.
During this phase, we gather the information we need to create an effective audit program and make
preliminary judgments of materiality. Highlights include:
Reviewing your internal control documents and interviewing your key employees and
representatives to gain operational information.
Discussing your goals, objectives, and the current challenges facing your operations; those are
then shared across your BerganKDV team and incorporated into our audit plan.
Obtaining population sizes ranging from 25-60 for certain transactions-based finance systems and
selecting which transactions we will test for internal control and compliance testing. Selections
will be based on our data analysis results, analyzing transactions on a risk-based level.
Obtaining your current financial reports and budgets and perform overall analytical review
procedures.
Obtaining applicable City organizational charts, policies, bond documents, leases, and other legal
contracts.
Reviewing with your staff our audit documentation requests. We audit and request information
that is used internally by your staff to manage operations, we do not require specific
templates to be used.
We will work with the management team to determine the preferred means of communication, whether
phone or email. In addition, we utilize Suralink, a workflow management software that improves efficiency
by streamlining our audit request process. The simple interface includes team assignments and deadlines, so
there are no misunderstandings on expectations.
Our audit process incorporates automated audit tools (Knowledge Coach) and work papers to provide our
clients with timely information and effective and efficient audits. In addition, we use CCH's TeamMate
Analytics, an Excel add-on used to extract and analyze data quickly and efficiently. We also subscribe to
various benchmarking and data analysis providers.
Your Expected Role: Provide BerganKDV with policies, internal control documents and a preliminary trial
balance; provide contact information for all board members and staff so we may set up
appointments/interviews with selected representatives; begin to gather documentation for fieldwork.
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Phase Two – Audit Program Execution (April)
Project execution is performing the procedures outlined in your audit plan as developed in Phase One. Our
audit procedures will include examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. We will discuss potential ideas and best practices with your personnel relating
to our recommendations for improving internal control, procedures and compliance with laws and
regulations. Any issues identified, proposed audit adjustments, or other recommendations will be discussed
with management throughout the execution of our audit procedures. We perform test work with as little
disruption as possible to City staff’s regular duties.
Highlights of this phase include:
Auditing year-end account balances, testing internal control, assessing compliance to determine if
your systems and controls are functioning as designed.
Using sampling techniques to test areas including transactions, internal controls and legal compliance
using the scope mandated by the Office of the State Auditor. Sample sizes range from 25-60 based
on our risk assessment.
Using IDEAS data mining software, we look for trends and anomalies in your payroll, vendor payment,
and cash receipts process.
Your Expected Role: Be available to answer questions during scheduled audit fieldwork, provide audit
workpapers or reconciliations with documentation that is reasonable and reviewed during Phase One.
Phase Three – Post-Audit Critique and Exit Conference (May)
This phase of the audit includes reviewing all the components of the financial statements and prepare the
communications letter and relevant financial trend data for the Board presentation. Finally, opinions on
the financial statements, Government Auditing Standards and Single Audit, if required, will be prepared.
We will then present this information to management allowing you time to review the financial statement
reporting package including the draft financial statements and any internal control findings or
recommendations that arise during the audit. This phase allows you time to assess, discuss and develop a
corrective action plan, if needed.
Your Expected Role: Provide preliminary financial statements and review our reports to provide
BerganKDV with input and feedback.
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Phase Four – Presentation of Audit Report (by June 15th)
The final phase of the process is the presentation of the reports to the City Council. The presentation
provides the governing body with information about the year’s financial activity compared to past trends
and expected results. We also provide other relevant and interesting observations relating to your financial
statistics that will help provide the governing board with a deeper understanding of your operations. We
understand all organizations have individual needs and we look forward to getting your feedback on graphs
and statistics.
Professional standards require that we provide you with information regarding the auditor’s responsibility
under generally accepted auditing standards, significant accounting policies, accounting estimates and
management judgments, significant audit adjustments, other information in documents containing audited
financial statements, disagreements with management, consultation with other auditors, major issues
discussed with management prior to retention as auditors and difficulties encountered in performing the
audit. We will provide this information in written form via the communications letter and will discuss with
administration during the review of the preliminary audit report.
Your Expected Role: Provide BerganKDV with information and feedback for presentation preferences.
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Fees
Our fees for the services are based on the amount of time and the level of experience of the individuals who
perform the services. In addition, we assume that the City's accounting personnel will provide the appropriate
workpapers, documents, schedules, and clerical assistance and will prepare the financial statements, notes
and other annual comprehensive financial report sections, and that we will not encounter any significant or
unusual circumstances which will affect the scope of our engagement, and no significant changes to the
City’s operations will occur. However, if situations arise, including the implementation of new accounting
standards, which affect the scope of the engagement, we will discuss them with you prior to incurring the
additional cost. At no time will we bill the City for extra time or charges unless we have verbal
communication regarding the issues, your options, and an agreement for additional fees.
Billing and Collection Expectations
Our fees are due as services progress and are generally billed at the completion of each phase of the audit.
These invoices are payable on presentation. Invoices are delinquent if not paid within 60 days.
Off-season Communication
We encourage questions throughout the year and ask our clients to submit to us their monthly financial
statements and board of director minutes, so we can stay abreast of their operations, and identify/resolve
any issues prior to year-end. We will not invoice additional amounts unless substantial research or work is
required, in which case, we will discuss the scope of any additional work and proceed only after we have
reached a mutually agreeable fee arrangement.
Out of Scope Professional Services
We do not surprise bill. If during our engagement you request additional services which require more than a
minimum amount of time, we will provide an engagement letter with the fees and services specified, only
after we have verbal communication and agreement. Additional special projects and consulting requested
during the year will be billed at an hourly rate commensurate with the level of experience required.
December 31, 2025 - $27,540 plus $4,000-$6,000 per single audit major program
December 31, 2026 - $28,500 plus $4,000-$6,000 per single audit major program
December 31, 2027 - $29,500 plus $4,000-$6,000 per single audit major program
Extended
Staff Classification Hourly Rate Hours Cost
Partner $ 420 12 $ 5,040
Manager 300 20 6,000
Senior 200 40 8,000
Staff 100 80 8,000
Out of Pocket Costs $ 500
Total $ 27,540
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Client References
A few of our municipality clients serviced by your team are listed below and we encourage you to contact
them.
Darin Nelson Gina Foschi
City of Minnetonka City of New Brighton
952.939.8253 651.638.2105
Joe Rueb
City of Maplewood
651.249.2903
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Below is a list of our city audit clients.
Recipients of a certificate of Achievement for Excellence in Financial Reporting are marked with an asterisk
(*).
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Peer Review
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Client Requested Documents
227
ATTACHMENT A
PROPOSER GUARANTEES AND WARRANTIES
I. Proposer warrants that it is willing and able to comply with State of Minnesota laws with
respect to foreign (non-state) corporations.
II. Proposer warrants that it is willing and able to obtain an errors and omissions insurance
policy providing a prudent amount of coverage for the willful or negligent acts, or
omissions of any officers, employees or agents thereof.
III. Proposer warrants that it will not delegate or subcontract its responsibilities under an
agreement without the prior written permission of the City.
IV. Proposer warrants that all information provided by it in connection with this proposal
is true and accurate.
Signature of Official:
Name (typed): Andrew Grice, CPA
Title: Partner
Firm: BerganKDV
Date: November 17, 2025
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ATTACHMENT B AND ATTACHMENT C
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE DECEMBER 31, 2025 FINANCIAL STATEMENTS
Standard Quotes Not-to-Exceed
Hourly Hourly Cost
Position Hours Rates Rates Total
Partners 12 $ 440 $ 420 $ 5,040
Manager 20 300 300 6,000
Senior 40 200 200 8,000
Staff 80 100 100 8,000
Subtotal 152
Total all-inclusive maximum price for 2025 City Audit $ 27,540
Total all-inclusive maximum price for 2026 City Audit $ 28,500
Total all-inclusive maximum price for 2027 City Audit $ 29,500
Single Audit Fee per Major Federal Program $4,000 - $6,000
Includes Single Audit Report, SEFA Preparation, and Preparation of Form SF-SAC
Fees include the preparation of the basic financial statements and printing of
reports.
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THANK YOU.
952.563.6862 | Andy.grice@creativeplanning.com
This presentation is provided for general information purposes only and should not be construed as investment, tax, or legal advice, and
does not constitute an attorney/client relationship. Past performance of any market results is no assurance of future performance. The
information contained herein has been obtained from sources deemed reliable but is not guaranteed.
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November 17, 2025
Proposal to provide professional
services to:
City of Kenyon
Prepared by:
Craig W. Popenhagen, CPA, Principal
Craig.popenhagen@claconnect.com
Direct 507-280-2327
CLAconnect.com
CPAS | CONSULTANTS | WEALTH ADVISORS
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.
©2025 CliftonLarsonAllen LLP
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CliftonLarsonAllen LLP
CLAconnect.com
November 17, 2025
Scott Lehner, City Administrator
City of Kenyon
709 2nd Street
Kenyon, MN 55946
Thank you for inviting us to propose. We look forward to the opportunity to provide services to City of Kenyon
(the City).
We are confident that our extensive experience serving similar governmental entities, bolstered by our client-
oriented philosophy and depth of resources, will make CLA a top qualified candidate to fulfill the scope of your
engagement. The following differentiators are offered for the City’s consideration:
• Industry-specialized insight and resources – As one of the nation’s leading professional services firms, and
one of the largest firms who specialize in regulated industries, CLA has the experience and resources to
assist the City with their audit needs. In addition to your experienced local engagement team, the City will
have access to one of the country’s largest and most knowledgeable pools of regulated industry resources.
• Communication and proactive leadership – the City will benefit from a high level of hands-on service from
our team’s senior professionals. We can provide this level of service because, unlike other national firms,
our principal-to-staff ratio is similar to smaller firms – allowing our senior level professionals to be involved
and immediately available throughout the entire engagement process. Our approach helps members of the
engagement team stay abreast of key issues at the City and take an active role in addressing them.
• A focus on providing consistent, dependable service – CLA is organized into industry teams, affording our
clients with specialized industry-specific knowledge supplemented by valuable local service and insight.
Therefore, the City will enjoy the service of members of our state and local government and our nonprofit
services teams who understand the issues and environment critical to governmental entities.
Verification statements
I, Craig Popenhagen, your engagement principal-in-charge, will serve as the City’s primary contact person for
this engagement. Furthermore, as a principal of CLA, I am authorized to sign, bind, and commit the firm to the
obligations contained in this proposal and the City’s RFP. Please contact me if I can provide additional
information on our firm or our proposal.
Sincerely,
CliftonLarsonAllen LLP
Craig W. Popenhagen, CPA
Principal
507-280-2327
Craig.popenhagen@claconnect.com
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Table of Contents
Independence.......................................................................................................................... 4
Prior Engagements with the City ............................................................................................. 4
License to Practice in Minnesota ............................................................................................. 4
Firm Qualifications and Experience ......................................................................................... 5
Location from Which Work will be Performed .......................................................................... 5
Number and Nature of Staff to be Employed ............................................................................ 5
Federal or state desk or field reviews ....................................................................................... 5
Peer Review .............................................................................................................................. 5
State and local government experience .................................................................................... 6
Deep industry connections........................................................................................................ 7
Insight to strengthen your organization .................................................................................... 7
Support at every turn ................................................................................................................ 8
Digital strategies ....................................................................................................................... 9
Partner, Supervisory, and Staff Qualifications and Experience............................................... 10
Similar Engagements with Other Governmental Entities ....................................................... 11
Specific Audit Approach......................................................................................................... 12
The CLA seamless assurance advantage (SAA) ........................................................................ 12
Financial statement audit approach ........................................................................................ 13
Approach to be taken in determining laws and regulations that are subject to audit test work
................................................................................................................................................ 16
Use of technology in the audit ................................................................................................ 16
Engagement Timeline ............................................................................................................ 17
Proposed work plan ................................................................................................................ 17
Proposed Segmentation of the Audit ...................................................................................... 17
Identification of Anticipated Potential Audit Problems ......................................................... 18
Appendix ............................................................................................................................... 19
A. Your service team ............................................................................................................... 20
B. Quality control procedures and peer review report............................................................ 23
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Independence
CLA hereby certifies that it is independent with respect to the City as defined by Government Auditing Standards
and U.S. generally accepted auditing standards. There are no other obligations or interests that might conflict with
the best interests of the City.
Prior Engagements with the City
CLA has previously served as auditors for the City and its component unit for the year ended December 31, 2020.
License to Practice in Minnesota
CLA is a properly licensed certified public accounting firm, able to practice in Minnesota. In addition, all key
professional staff assigned to these engagements are properly licensed to practice as certified public accountants
in Minnesota. CLA is a limited liability partnership and is duly licensed to practice public accounting in the State of
Minnesota and other states in which it chooses to practice.
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Firm Qualifications and Experience
Location from Which Work will be Performed
Your engagement will be managed from our Austin, Minnesota location. The location of the office is as follows:
CliftonLarsonAllen LLP
109 North Main Street
Suite 200
Austin, Minnesota 55912
Number and Nature of Staff to be Employed
A breakdown of the personnel to be employed in this engagement is included in the chart below:
Level Number on Engagement Full Time or Part Time
Principal 1 1 full time
Manager/Director 1 1 full time
Senior 1 1 full time
Staff 2 2 full time
Federal or state desk or field reviews
From time to time, individuals in the firm are parties to an inquiry from a regulatory or ethics body. In all cases
the individual, with the firm's backing, shall cooperate in providing the information required to respond
appropriately to the inquiry. The firm and professionals within the firm presently do not have any regulatory or
ethics inquiries outside the normal course of our practice.
Peer Review
We have included a copy of CliftonLarsonAllen’s most recent peer review report - see Appendix B: Quality Control
Procedures and Peer Review Report.
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State and local government experience
You can benefit from a close personal connection with a team of professionals devoted to governments. Our
goal is to become familiar with all aspects of your operations — not just the information needed for the year-
end audit, so that we can offer proactive approaches in the areas that matter most to you:
• Finding new ways to operate more effectively and efficiently
• Responding to regulatory pressures and complexities
• Maintaining quality services in the face of revenue reductions
• Providing transparent, accurate, and meaningful financial information to stakeholders, decision-makers, and
your constituents
We understand the legislative changes, funding challenges, compliance responsibilities, and risk management
duties that impact you. Our experienced government services team can help you navigate the challenges of
today, all while seamlessly strategizing for the future.
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Deep industry connections
CLA actively supports industry education as a
thought leader and industry speaker. We focus on
supporting the educational needs of the industry
through nationally sponsored trade events. Our
team of professionals is sought after, both as
educators and as experienced speakers who are
invited to speak and teach at major professional
events by leading trade associations, including those
shown here.
We are also actively involved in and/or are members
of the following professional organizations:
• American Institute of Certified Public Accountants (AICPA)
• AICPA’s State and Local Government Expert Panel
• AICPA’s Government Audit Quality Center (GAQC)
• Government Finance Officers Association (GFOA)
• Special Review Committee for the GFOA’s Certificate of Achievement for Excellence in Financial Reporting
(Certificate) Program
• AICPA Single Audit Quality Task Force
• Association of Government Accountants
Our involvement in these professional organizations, combined with various technical services we subscribe to,
allows use to be at the forefront of change in the constantly changing government environment. We take our
responsibility for staying current with new accounting pronouncements, auditing standards, other professional
standards and laws and regulations seriously.
Insight to strengthen your organization
When you’re ready to go beyond the numbers to find value-added strategies, we offer resources to help you
respond to challenges and opportunities including:
• National webinars — Access complimentary professional development opportunities for your team.
• Articles and white papers — Stay current on industry information as issues arise.
Curious: We care, we listen, we get to know you.
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Support at every turn
With dedicated services specific to state and local
governments, you have access to guidance on all
aspects of your operations.
• Affordable Care Act (ACA) reporting and
compliance
• Audit, review, and compilation of financial
statements
• Compliance audits (HUD, OMB Single Audits)
• COVID-19 funding support
• Cybersecurity
• Enterprise risk management
• Forensic accounting, auditing, and fraud
investigation
• Fraud risk management
• Grant compliance
• Implementation assistance for complex
Governmental Accounting Standards Board
(GASB) statements
• Internal audit
• Outsourced business operations
• Performance auditing
• Purchase card (p-card) monitoring and analytics
• Risk assessments
• Strategic, financial, and operational consulting
• Telecom management services
Independence can easily become impaired when providing consulting services; therefore, we do not provide any
services to our audit clients beyond those allowed. If additional work is requested by the City outside of the
scope of the audit, we will discuss with you our proposed fee for additional services prior to beginning the new
services.
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Digital strategies
Leverage data and automation to help you power success. Digital strategy provides a
road map for tomorrow and identifies actionable opportunities for your organization.
Properly harnessed, technology and data reveal deep insight into your organization. We can help you develop
digital strategies to leverage trends, overcome challenges, and innovate for the future.
We help our clients put data to work on:
Improve revenue
Reduce time to market
and expense forecasting
Improve strategic Reduce client
decision making acquisition costs
Improve jobsite Reduce
and production line safety equipment downtime
Improve Reduce
cash flow client churn
Streamline Reduce fraud through automated anomaly
operational processes detection
Increase employee retention
Reduce pricing volatility
and engagement
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Partner, Supervisory, and Staff Qualifications and
Experience
The true value in working with our team is developing a personal and professional
relationship with leaders who understand your industry, challenges, and opportunities
— with the full support of an entire CLA family behind them.
Meet your service team below.
Years’
Engagement Team Member Role
Experience
Engagement principal – Craig will have
overall engagement responsibility including
planning the engagement, developing the
audit approach, supervising staff, and
maintaining client contact throughout the
Craig Popenhagen, CPA engagement and throughout the year. Craig 30
is responsible for total client satisfaction
through the deployment of all required
resources and continuous communication
with management and the engagement
team.
Senior – Sterling will be responsible for the
Sterling Shatek, CPA day-to-day activities for this engagement, 9
including the supervision of all staff assigned.
Additional staff – We will assign additional staff to your engagement based on your needs and their
experience providing services to state and local governments.
Biographies of the above team members are included in Appendix—A: Engagement Team Biographies. Additional
staffing may be added depending on the needs of the engagement.
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Similar Engagements with Other Governmental
Entities
CLA offers its clients the best of two worlds — a firm with national governmental and nonprofit experience,
complemented by a local team dedicated to accessibility and responsiveness. We are pleased to provide you with
the following references, who can describe their experience in greater detail.
City of Austin, Minnesota, including Austin Port Authority and Austin/Mower County Home Ownership
Fund
Financial statement audit, audit of federal program compliance under
Scope of Work Uniform Grant Guidance (single audit) and audit of compliance with the
Minnesota Legal Compliance Audit Guide for Cities.
Date Services Performed Year ended December 31, 1993, to present
CLA Engagement Principal Craig Popenhagen
Total Hours 330
Tom Dankert, General Manager at Austin Utilities (previously Director of
Client Contact
Administrative Services at City of Austin). Ph. 507-433-1289
City of Windom, Minnesota
Financial statement audit, audit of federal program compliance under
Scope of Work Uniform Grant Guidance (single audit) and audit of compliance with the
Minnesota Legal Compliance Audit Guide for Cities.
Date Services Performed Year ended December 31, 2024, to present
CLA Engagement Principal Craig Popenhagen
Total Hours 500
Client Contact Donna Torkelson, Finance Director/Controller. 507-832-8651
City of Glencoe, Minnesota
Financial statement audit and audit of compliance with the Minnesota
Scope of Work
Legal Compliance Audit Guide for Cities.
Date Services Performed 1993 to present
CLA Engagement Principal Craig Popenhagen
Total Hours 350
Todd Trippel, Finance Director. 320-864-5586
Client Contact
Amy Halquist, Finance Assistant. 320-864-5586
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Specific Audit Approach
The CLA seamless assurance advantage (SAA)
SAA is an innovative approach to auditing that utilizes leading technologies, analytics, and audit methods to help
solve client problems and create a seamless experience.
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Financial statement audit approach
Phase 1: Planning and strategy
The main objective of the planning phase is to identify significant areas and design efficient audit procedures.
Conduct an entrance meeting –meet with the City personnel to agree on an outline of responsibilities and
time frames
Establish audit approach and timing schedule
Determine assistance to be provided by the City personnel
Discuss application of generally accepted accounting principles
Address initial audit concerns
Establish report parameters and timetables
Progress reporting process
Establish principal contacts
Gain an understanding of your operations, including any changes in organization, management style, and
internal and external factors influencing the operating environment
Identify significant accounts and accounting applications, critical audit areas, significant provisions of laws
and regulations, and relevant controls over operations
Determine the likelihood of effective Information Systems (IS) - related controls
Perform a preliminary overall risk assessment
Confirm protocol for meeting with and requesting information from relevant staff
Establish a timetable for the fieldwork phase of the audit
Determine a protocol for using TeamMate Analytics and Expert Analyzer (TeamMate), our data extraction
and analysis software, to facilitate timely receipt and analysis of reports from management
Compile an initial comprehensive list of items to be prepared by the City, and establish deadlines
We will document our planning through:
Entity profile — This profile will help us understand the City's activities, organizational structure, services,
management, key employees, and regulatory requirements.
Preliminary analytical procedures — These procedures will assist in planning the nature, timing, and extent
of auditing procedures that will be used to obtain evidential matter. They will focus on enhancing our
understanding of the financial results and will be used to identify any significant transactions and events
that have occurred since the last audit date, as well as to identify any areas that may represent specific risks
relevant to the audit.
General risk analysis — This will contain our overall audit plan, including materiality calculations, fraud risk
assessments, overall audit risk assessments, effects of our IS assessment, timing, staffing, client assistance, a
listing of significant provisions of laws and regulations, and other key planning considerations.
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Account risk analysis — This document will contain the audit plan for the financial statements, including risk
assessment and the extent and nature of testing by assertion.
Prepared by client listing — This document will contain a listing of schedules and reports to be prepared by
the City personnel with due dates for each item.
Assurance Information Exchange (AIE) — CLA uses a secure web-based application to request and obtain
documents. This application allows clients to view detailed information, including due dates for all items CLA
is requesting. Clients can attach electronic files and add commentary directly on the application.
A key element in planning this audit engagement will be the heavy involvement of principals and
directors/managers. We will clearly communicate any issues in a timely manner and will be in constant contact
as to what we are finding and where we expect it will lead.
Using the information we have gathered, and the risks identified, we will produce an audit program specifically
tailored to the City that will detail the nature and types of tests to be performed. We view our programs as living
documents, subject to change as conditions warrant.
Phase 2: Systems evaluation
We will gain an understanding of the internal control structure of the City for financial accounting and relevant
operations. Next, we will identify control objectives for each type of control material to the financial statements
and then identify and gain an understanding of the relevant control policies and procedures that effectively
achieve the control objectives. Finally, we will determine the nature, timing, and extent of our control testing
and perform tests of controls. This phase of the audit will include testing certain key internal controls:
Electronic data, including general and application controls reviews and various user controls
Financial reporting and compliance with laws and regulations
We will test controls over certain key cycles, not only to gather evidence about the existence and effectiveness
of internal control for purposes of assessing control risk, but also to gather evidence about the reasonableness
of an account balance. Our use of multi-purpose tests allows us to provide a more efficient audit without
sacrificing quality.
Our assessment of internal controls will determine whether the City has established and maintained internal
controls to provide reasonable assurance that the following objectives are met:
Transactions are properly recorded, processed, and summarized to permit the preparation of reliable
financial statements and to maintain accountability over assets
Assets are safeguarded against loss from unauthorized acquisition, use, or disposition
Transactions are executed in accordance with laws and regulations that could have a direct and material
effect on the financial statements
We will finalize our audit programs during this phase. We will also provide an updated prepared by client listing
based on our test results and anticipated substantive testing.
During the internal control phase, we will also perform a review of general, and application IS controls for
applications significant to financial statements to conclude whether IS general controls are properly designed
and operating effectively.
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Based on our preliminary review, we will perform an initial risk assessment of each critical element in each
general control category, as well as an overall assessment of each control category. We will then assess the
significant computer-related controls.
For IS-related controls we deem to be ineffectively designed or not operating as intended, we will gather
sufficient evidence to support findings and will provide recommendations for improvement. For IS controls we
deem to be effectively designed, we will perform testing to determine if they are operating as intended through
a combination of procedures, including observation, inquiry, inspection, and re-performance.
Phase 3: Testing and analysis
The extent of our substantive testing will be based on results of our internal control tests. Audit sampling will be
used only in those situations where it is the most effective method of testing.
After identifying individually significant or unusual items, we will decide the audit approach for the remaining
balance of items by considering tolerable error and audit risk. This may include (1) testing a sample of the
remaining balance; (2) lowering the previously determined threshold for individually significant items to increase
the percentage of coverage of the account balance; or (3) applying analytical procedures to the remaining
balance.
Our workpapers during this phase will clearly document our work as outlined in our audit programs. We will
provide the City with status reports and be in constant communication with the City to determine that all
identified issues are resolved in a timely manner. We will hold a final exit conference with the City to summarize
the results of our fieldwork and review significant findings.
Phase 4: Reporting and follow-up
Reports to management will include oral and/or written reports regarding:
Independent Auditors' Report
Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other
Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing
Standards
Independent Auditors' Report on Compliance for Each Major Federal Program, Report on Internal Control
Over Compliance, and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform
Guidance
Management Letter
Written Communication to Those Charged with Governance, which includes the following areas:
Our responsibility under auditing standards generally accepted in the United States of America
Changes in significant accounting policies or their application
Unusual transactions
Management judgments and accounting estimates
Significant audit adjustments
Other information in documents containing the audited financial statements
Disagreements with the City
the City’s consultations with other accountants
Major issues discussed with management prior to retention
Difficulties encountered in performing the audit
Fraud or illegal acts
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Once the final reviews of working papers and financial statements are completed, our opinion, the financial
statements, and management letter will be issued.
The City will be given a draft of any comments we propose to include in the management letter. Items not
considered major may be discussed verbally with management instead of in the management letter. Our
management letter will include items noted during our analysis of your operations.
Approach to be taken in determining laws and regulations that are subject to audit
test work
We obtain an understanding of the laws and regulations that have an impact on the City’s operations by
reviewing council minutes to identify any ordinances or resolutions that might have an impact on operations and
reporting by the City, as well as interview key personnel and management of the City.
Use of technology in the audit
We’re reimagining the audit process through technology to elevate your experience!
Assurance Information Exchange – CLA offers a secure web-based application to request and obtain documents
necessary to complete client engagements. This application allows clients to view detailed information, including
due dates for items that CLA requests. Additionally, the application allows clients to attach electronic files and
add commentary related to the document requests directly on the application. AIE is provided at no additional
cost, subject to the terms of the Assurance Information Exchange Portal Agreement.
TeamMate Analytics and Expert Analyzer (TeamMate) – To analyze and understand large data sets, we use
TeamMate Analytics and Expert Analyzer. We customize the application by industry to perform the most
applicable procedures. This allows us to go beyond sampling and instead analyze the entire general ledger for
targeted anomalies. Far beyond the audit application, our six-phase process of Risk Assessment, Data Analytics
and Review (RADAR) can also provide actionable insights to help you understand your entity better.
Microsoft® Teams – Our services approach focuses on impactful interactions. We’ve said goodbye to the days of
setting up camp in our clients’ conference rooms for weeks on end. We know our clients have organizations to
run, so our interactions have purpose. To assist with communications when we are not onsite, we utilize tools
such as Microsoft Teams, which allow for two-way screen sharing and video. We’ve found this helps minimize
disruptions in our clients’ environments while continuing to effectively communicate with each other.
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Engagement Timeline
Count on clear communication and regular updates.
Proposed work plan
Per our discussions we have designed a plan that meets your needs and key deadlines. In our planning meeting,
we will discuss this timeline with you in greater detail and adjust as appropriate.
January List of audit requests released
January Interim work
April Complete audit fieldwork
May Draft reports by end of May
June Presentation to city council
Ongoing Planning and update meetings
Reliable: Look for us to respond in hours, not days. We strive to deliver service that exceeds
your expectations.
Proposed Segmentation of the Audit
The breakdown of the level of staff and the approximate number of hours are as follows:
Annual Audit Task Principal Senior Hours Associate Paraprofessional Total
Hours Hours Hours Hours
Planning & Strategy 5 20 -- -- 25
Internal Controls 5 20 -- -- 25
Substantive Testing 20 140 155 -- 315
& Analysis
Reporting 10 20 -- 30
Administrative -- -- -- 12 12
Support
Total Hours 40 200 155 12 400
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Identification of Anticipated Potential Audit Problems
CLA uses a collaborative approach to resolving questions and issues through open communication and
involvement of appropriate levels of management from our side and yours. We regularly consult with our
service line quality leadership and our general counsel on technical matters and make those resources available
to you. This includes the exchange of ideas and advice as changes are considered or implemented by the entity
or the accounting profession. Our commitment to this practice encourages open lines of communication and
often prevents or mitigates service issues.
At this time, we do not foresee any audit problems.
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Appendix
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A. Your service team
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Craig Popenhagen, CPA
CLA (CliftonLarsonAllen LLP)
Principal 507-280-2327
Austin, Minnesota craig.popenhagen@CLAconnect.com
Profile
Craig has 30 years of experience in performing audits of local governments,
electrical utility agencies, and municipal utilities.
Craig also has significant experience in audits of federal grant programs. His experience with federal grant and
loan programs includes energy, education, child nutrition, economic development and housing assistance,
development, and rehabilitation.
A sampling of his current and past clients include:
City of Austin, MN (GFOA Certificate Program – ACFR)
City of Mahtomedi, MN (GFOA Certificate Program – ACFR)
Southeast Minnesota Violent Crime Enforcement Team
Several rural electrical cooperatives.
Education and professional involvement
Bachelor of arts, accounting from University of Northern Iowa
American Institute of Certified Public Accountants
Certified Public Accountant in the States of Iowa, Minnesota, Wisconsin
Continuing Professional Education
Craig is in full compliance with continuing education requirements established by Government Auditing
Standards.
CLAconnect.com
WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING
Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC,
an SEC-registered investment advisor.
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Sterling Shatek, CPA
CLA (CliftonLarsonAllen LLP)
Senior 507-434-7001
Austin, Minnesota sterling.shatek@CLAconnect.com
Profile
Sterling has eight years of accounting experience-four years in public accounting
and four years in industry. He currently performs assurance services for various State and local government
organizations. Sterling’s clients include Cities, Counties, Housing & Redevelopment Authorities, and School
Districts.
Technical experience
State and local government
School districts
Clients served
City of Austin, Minnesota
City of Owatonna, Minnesota
City of Adams, Minnesota
Blue Earth County, Minnesota
Fillmore County, Minnesota
Education and professional involvement
Bachelor of Arts, accounting – University of Northern Iowa
American Institute of Certified Public Accountants
Certified Public Accountant in the states of Minnesota
Minnesota Society of Certified Public Accountants
Continuing professional education
Sterling is in full compliance with continuing education requirements established by Government Auditing
Standards.
.
CLAconnect.com
WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING
Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC,
an SEC-registered investment advisor.
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B. Quality control procedures and peer review report
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In the most recent peer review report, dated November 2022, we received a rating of pass, which is the most
positive report a firm can receive. We are proud of this accomplishment and its strong evidence of our
commitment to technical excellence and quality service. The full report is provided on the following page.
In addition to an external peer review, we have implemented an intensive internal quality control system to
provide reasonable assurance that the firm and our personnel comply with professional standards and
applicable legal and regulatory requirements. Our quality control system includes the following:
• A quality control document that dictates the quality control policies of our firm. In many cases, these
policies exceed the requirements of standard setters and regulatory bodies. Firm leadership promotes and
demonstrates a culture of quality that is pervasive throughout the firm’s operations. To monitor our
adherence to our policies and procedures, and to foster quality and accuracy in our services, internal
inspections are performed annually.
• Quality control standards as prescribed by the AICPA. The engagement principal is involved in the planning,
fieldwork, and post-fieldwork review. In addition, an appropriately experienced professional performs a risk-
based second review of the engagement prior to issuance of the reports.
• Hiring decisions and professional development programs designed so personnel possess the competence,
capabilities, and commitment to ethical principles, including independence, integrity, and objectivity, to
perform our services with due professional care.
• An annual internal inspection program to monitor compliance with CLA’s quality control policies.
Workpapers from a representative sample of engagements are reviewed and improvements to our practices
and processes are made, if necessary, based on the results of the internal inspection.
• Strict adherence to the AICPA’s rules of professional conduct, which specifically require maintaining the
confidentiality of client records and information. Privacy and trust are implicit in the accounting profession,
and CLA strives to act in a way that will honor the public trust.
• A requirement that all single audit engagements be reviewed by a designated single audit reviewer, thereby
confirming we are in compliance with the standards set forth in the Uniform Guidance.
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November 17, 2025
Proposal to provide professional
services to:
City of Kenyon
Dollar Cost Bid
Prepared by:
Craig W. Popenhagen, CPA, Principal
Craig.popenhagen@claconnect.com
Direct 507-280-2327
CLAconnect.com
CPAS | CONSULTANTS | WEALTH ADVISORS
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.
Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.
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Fee Proposal for City of Kenyon
Name of firm
CLA (CliftonLarsonAllen LLP)
Verification statement
I, Craig Popenhagen, your engagement principal, will serve as the City’s primary contact person for this
engagement. As a principal of CLA, I am authorized to sign, bind, and commit the firm to the obligations
contained in this proposal and the City’s RFP. My contact information is:
Craig W. Popenhagen, CPA, Principal
Office: 507-280-2327
Email: craig.popenhagen@claconnect.com
Our fixed-fee quote is designed with an understanding that:
the City’s personnel will provide documents and information requested in a timely fashion.
The operations of your organization do not change significantly and do not include any future acquisitions or
significant changes in your business operations.
There are no significant changes to the scope, including no significant changes in auditing, accounting, or
reporting requirements.
Accounting standards for leases, technology subscriptions and compensated absences have been correctly
implemented prior to 2025.
The City does not receive funding from federal sources in an amounts that would trigger a federal
compliance audit under Uniform Grant Guidance.
The 5% technology and client support fee supports our continuous investment in technology and innovation to
enhance your experience and protect your data.
No surprises
Our clients don’t like fee surprises. Neither do we. If changes occur, we will discuss a revised fee proposal with
you before beginning any work. For any “out-of-scope” work, we will provide an estimate for your approval.
We’re invested in our relationships and strongly encourage intentional and frequent communication. Contact us
year-round as changes or questions arise — we do not bill for routine inquiries or advice.
We are committed to creating a long-standing relationship. If you have concerns about the fee structure, give
us a call and let’s discuss.
Transparent: Clear, authentic communication and market-based fees.
Terms of payment
Our invoices for these fees will be in thirds and are payable on presentation – one third billed upon signing the
annual agreements, one-third at start of fieldwork, and one-third upon completion of each audit or tax return. In
accordance with our firm policies, work may be suspended if your account becomes 60 days or more overdue
and will not be resumed until your account is paid in full.
©2025 CliftonLarsonAllen LLP | 2
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ATTACHMENT B
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR
THE COMPILATION AND AUDIT OF THE FINANCIAL STATEMENTS
STANDARD QUOTED
HOURLY HOURLY
HOURS RATES RATES TOTAL
PARTNERS ____40_____ _525________ __375_______ ____15,000_
MANAGERS _________ _240________ __170_______ _________
SUPERVISORY STAFF ___200______ _185________ __130_______ __26,000_
STAFF ___155______ _155________ __120_______ ____18,600_
OTHER (SPECIFY) para ____12_____ _120________ __100_______ _____1,200_
Technology Fee 3,040
Expenses not-to-exceed 800
SUBTOTAL ___407______ ___________64,640_
TOTAL NOT-TO-EXCEED COST FOR THE 2025 AUDIT _________64,640_
TOTAL NOT-TO-EXCEED COST FOR THE 2026 AUDIT _________69,890_
TOTAL NOT-TO-EXCEED COST FOR THE 2027 AUDIT 70,940
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ATTACHMENT C
2025 Audit
Audit 407 $64,640
2026 Audit
Audit 425 $69,890
2027 Audit
Audit 407 $70,940
Audit Hours - Should include basic audit and fieldwork procedures.
1
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AGENDA ITEM NO. XI.G
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: New Business
AGENDA SECTION: NEW BUSINESS
SUBJECT:
Holiday Office Closings
1. City Office/Library Closed on Wednesday, December 24
2. City Office/Library Closed on Friday, December 26
SUGGESTED ACTION: Since Christmas Day is on a Thursday, city staff are asking to be
closed on Wednesday, December 24 and Friday, December 26.
The office and library would be closed, but staff would have the
option of working or using vacation for this day.
MOTION NEEDED
ATTACHMENTS:
261
AGENDA ITEM NO.
XII.A
Agenda Item Summary
CITY COUNCIL AGENDA ITEM REPORT
DATE: December 9, 2025
SUBMITTED BY: Holli Gudknecht, Administration
ITEM TYPE: Miscellaneous
AGENDA SECTION: F.Y.I. - Department Updates
SUBJECT: FYI for 12/9/25
SUGGESTED ACTION: For information only.
ATTACHMENTS:
FYI 12-9-25.pdf
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