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2012_01_24 CC PKT
Brookings City Council Tuesday, January 24, 2012 5:00 p.m. Work Session 6:00 p.m. Regular Meeting City Hall Council Chambers 311 Third Avenue The City of Brookings is committed to providing a high quality of life for its citizens and fostering a diverse economic base through innovative thinking, strategic planning, and proactive, fiscally responsible municipal management. 5:00 p.m. WORK SESSION Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. Update on BEDC Resolution pertaining to the NW Quadrant Project. 2. Review of Liquor Store draft Request for Proposal. 3. City Council Member Ex-Officio Reports. 4. Joint Powers Board members’ Report. 5. City Council member introduction of topics for future discussion. * 6. Review of Council Agenda, Invites and Obligations. *Any Council member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required stating the issue, requested outcome, and time. A majority vote is required. 6:00 p.m. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. Record of Council Attendance. 4. Action to approve the following Consent Agenda Items:* A. Action to approve the agenda. B. Action on Resolution No. 12-12, a Resolution fixing time and place for Hearing Upon Assessment Roll for Sidewalk Assessment Project No. 2010-01SWR (2010 Sidewalk Repair Sites). C. Action on Resolution No. 13-12, a Resolution fixing time and place for Hearing Upon Assessment Roll for Sidewalk Assessment Project No. 2011-01SWR (2011 Sidewalk Repair Sites). D. Action on Resolution No. 14-12, a Resolution authorizing Change Order No. 2 (CCO#2 Final) for 2011-02BLD City of Brookings Garage Project, Clark Drew Construction. E. Action on Resolution No. 15-12, a Resolution authorizing Change Order No. 1 (CCO#1 Final) for 2011-06STI Chip Seal Project, Bituminous Paving, Inc. F. Action on Resolution No. 16-12, Federal Aid Surface Transportation Program Resolution for County and Urban Projects. G. Action on Resolution No. 17-12, a Resolution authorizing the City Manager of the City of Brookings, South Dakota to sign the Cooperative Fire Agreement with the State of South Dakota. H. Action on Resolution No. 28-12, A Resolution Authorizing the Mayor to Sign Documents for P-3301(10) PCN 01D6, Medary Avenue from 6th Street to 15th Street South, Brookings, SD. I. Action to cancel the March 13, 2012 city council meeting. J. Action on Resolution No. 18-12, A Resolution Authorizing the Mayor to Sign Documents for P-PH 0014(172)418 PCN 01TJ, US Highway 14 Project, Brookings, SD. K. Action on Resolution No. 19-12, a Resolution authorizing Change Order No. 1 for 2011-01 Gateway Project, Clark Drew, Inc. L. Action on an Abatement request from Brookings Health Systems to abate a portion of the 2011 taxes in the amount of $8,481.10 for part of Lot 1, Block 4, Mayland’s First Addition, also known as 100 22nd Avenue. M. Action on an abatement request from Brookings Health Systems to abate a portion of 2011 taxes in the amount of $844.56 for Block 8, Mayland’s First Addition, Bare Land. N. Action on an appointment to the Board of Adjustment. O. Action on Resolution No. 27–12, Resolution Authorizing Change Order No. 2 (CCO#2 Final) for 2011‐03BLD Airport Building Addition Project, Clark Drew Construction. Motion to Approve, Request Public Comment, Roll Call 5. Items removed from Consent Agenda. *Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. Open Forum/Presentations/Reports 6. Presentation of Annual Dr. Martin Luther King Day Awards. 7. Open Forum. 8. SDSU Student Senate Report. Contracts and Change Orders 9. Action on Resolution No. 20-12, a Resolution awarding bids for the Brookings Nature Park Phase I, Fisheries Improvements. Action: Motion to approve, request public comment, roll call First Readings** 10. Ordinance No. 01-12: An Ordinance amending the Zoning Ordinance pertaining to banners and temporary signs. Public Hearing: February 14th **No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. Alcohol Licenses 11. Action on Resolution No. 21-12, a Resolution establishing the fee for issuance of Operating Agreements in the City of Brookings. (This Resolution would rescind Resolution No. 128- 11, adopted on 8/23/11.) Action: Motion to approve, request public comment, roll call 12. Action authorizing the City Manager to sign Operating Agreements for on-sale liquor at the following locations for a term of ten years with a five year renewal: A. Resolution No. 22-12: Brownstone Restaurant and Bar, Brennan and Lori Sullivan, owners, located at Lot 7, Block 3, Original Plat Addition, City of Brookings, also known as 313 Main Avenue. B. Resolution No. 23-12: BraVo’s, Kip and Michelle Pharis, Owners, 610 Medary Avenue, Brookings, South Dakota, legal description: Lots 3-4-5, Randi Peterson Addition. Action: Motion to approve, request public comment, roll call 13. Public hearing and action on Resolution No. 24-12, a Resolution authorizing the City Manager to sign a new Operating Agreement for On-Sale Liquor at one of the following locations for a term of ten years, with a five year renewal: A. Gonz Productions, Inc., dba Main Street Pub & Grill, 408 Main Avenue, Lot 5, Block 7, Original Plat Addition, Garner Hansen, owner. B. Old Market, LLC, dba Old Market Eatery, 424 5th Avenue, Lots 15-18, Block 7, Original Plat Addition, Katie Knutson and Jael Thorpe, owners. Action: Open and close public hearing, motion to approve, roll call Other Business 14. Action on Resolution No. 25-12, a Resolution providing for the Creation of Tax Incremental District Number Six (#6), City of Brookings. Action: Motion to approve, request public comment, roll call 15. Action on Resolution No. 26-12, a Resolution of Intent to create Business Improvement District Number One. Action: Motion to approve, request public comment, roll call 16. Market Analysis and letter of support for Haan Development Housing Project. Action: Motion to approve, request public comment, roll call 17. Adjourn. Brookings City Council Tim Reed, Mayor, Jael Thorpe, Deputy Mayor & Council Member Council Members Tom Bezdichek, John Kubal, Mike McClemans, Keith Corbett, Ope Niemeyer Council Staff: Jeffrey W. Weldon, City Manager Steven Britzman, City Attorney Shari Thornes, City Clerk View the City Council Meeting Live on the City Government Access Channel 9. Rebroadcast Schedule: Wednesday 1:00pm / Thursday 7:00pm Friday 9:00pm / Saturday 1:00pm The complete City Council agenda packet is available on the city website: www.cityofbrookings.org If you require assistance, alternative formats, and/or accessible locations consistent with the Americans with Disabilities Act, please contact Shari Thornes, City ADA Coordinator, at 692-6281 at least three working days prior to the meeting. City of Brookings January 24, 2012 5 5:00 P.M. WORK SESSION Work Sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 1. Update on BEDC Resolution pertaining to the NW Quadrant Project. At the request of Council, Al Heuton, BEDC Executive Director, will provide an update on the BEDC Resolution pertaining to the NW Quadrant project. The resolution was provided to the City Council on April 5, 2011. Brookings Economic Development Corporation Northwest Campus Task Force Position Recommendation In April, 2010 a task force of BEDC members was created and charged with the following task: To determine if the BEDC Board of Directors should consider taking a position on the NW Campus 300 bed apartment building project, and if so, what should that position include. Task Force should consider: The need for housing Housing alternatives Appropriate locations Impact on SDSU Impact on the community Factors related to fair competition Prior to providing a recommendation to the BEDC Board of Directors for consideration, it may be useful to provide first, a brief overview of events leading to this recommendation, and second, a brief summary of the complexities involved in considering a position on this topic. Overview of Events In September 2009 South Dakota State University unveiled a concept plan for the northwest corner of the SDSU campus. This plan document represents one component of a master plan development concept for SDSU. The concept plan is depicted in the “Northwest Quadrant Mixed-Use Development Feasibility Study Final Report” prepared by Brailsford and Dunlavey. The report suggests a market exists for the establishment of an “upper-class and graduate private-style upscale apartment including complementary retail space.” Although the feasibility study introduces additional recommendations for student apartments, retail, active adult City of Brookings January 24, 2012 6 housing, and a hotel conference center; the task force considered only that portion of the student housing currently in question, the 300 bed upper-class and graduate facility. During the month of November 2009, BEDC conducted two meetings with local developers to listen to their thoughts on the Northwest Quadrant study. The initial meeting was a “developer only” meeting intended to provide developers with a forum to express their support or concerns for the proposed project. The second meeting was organized to provide President Chicoine, SDSU personnel and developers an opportunity to engage in discussion and questions related to the project, process and timing. Developer concerns addressed during the sessions included topics such as the potential for unfair competition with a public entity involved, market vacancy rates, a changing role and mission for SDSU, tax loss concerns, the bond financing process and potential inability of local developers to bid, project ownership, and more. Additional presentations and discussions were held at BEDC board meetings during which the BEDC Board of Directors decided to form the BEDC Northwest Campus Task Force. A Complex Issue BEDC’s mission is “To build an economy that supports the community’s vision of a quality place to live, work and play.” A primary role, or responsibility, of the BEDC in the process of economy building is to undertake efforts that expand, create, or recruit primary industry to the area. South Dakota State University is the community’s major employer and is considered a primary industry. Accordingly, an evaluation of the proposed 300 bed apartment project and SDSU’s role in the provision of student housing should be undertaken within the context of SDSU’s function as a primary industry benefiting the Brookings area. An evaluation of this nature presents numerous questions for consideration which may be derived from factual and projected data, perceptions and skepticism, economic growth theory, and interpretation of appropriate roles and responsibilities of public bodies. Although this type of analysis is well beyond the scope of the committee’s intended role and budget, it is important that a sampling of questions and viewpoints raised by the committee be noted for illustrative purposes. These questions and viewpoints are posed from the various perspectives represented in the discussion, as follows: Local Developer Perspective Does a market exist for the number of upper-class and graduate private-style upscale apartments proposed? Will the project be publicly or privately owned and operated? Will the project pay property taxes on structures and some form of payment in lieu of taxes on land that results in a level playing field with private developments? Can the project be structured to ensure that private ownership is feasible? Could enhanced public transportation negate the desire of students to live close to campus? The private sector has been a primary partner in the growth of SDSU by providing housing for students. City of Brookings January 24, 2012 7 SDSU Perspective Upper-division housing close to campus is needed to be competitive in the market place. Graduate students need housing in close proximity to laboratory space. Some upper class students and transfer students desire to be close to, and participate in, the campus experience. Revenue generation is important to operation and maintenance programming at the university. Growth in upper-class and graduate students is imperative to SDSU’s desire for increased research activity and long term university success. Community Perspective Brookings recognizes that most new economic growth will come from within. SDSU is a major Brookings employer and industry. New and emerging technologies emanating from SDSU will create new growth opportunities. What percentage of new student growth will SDSU capture, and what remaining opportunity can be captured by the local development community? The private sector has responded to the need for student housing alternatives. Some projects should be upheld as models (in their respective day) while the quality, location, design and safety of others are, at times, questionable. The community is interested in retaining and building upon the current town/gown relationship. However, it is also important for the community to grow the tax base, protect private sector investments that contribute to the overall vision/goals of the community, and ensure, when possible, the use of local investors and resources in public/private development opportunities. To what extent can SDSU’s growth potential create beneficial economic impacts for the community and private sector that offset potential losses that may be created by SDSU ownership of the proposed 300 bed apartment complex. The questions stated above demonstrate the complexity of the issues that should be investigated to properly develop a position statement based upon the merits of the proposed project and its impact on the Brookings community. This type of analysis is beyond the scope of the task forces mission and resources. Therefore, a recommendation by the task force should be cognizant of, and reflect the desires of, the primary stakeholders impacted by the proposal. These stakeholders include SDSU students, SDSU, private developers, and the community. Conclusions that may be drawn from the task force discussions include the following: The task force supports the provision of quality upper-class and graduate student housing located both near campus and throughout the community. The task force supports future growth of SDSU as a primary employer and industry in the community recognizing this growth will positively impact the community and area economy. City of Brookings January 24, 2012 8 The task force is cognizant of the dilemma facing SDSU resulting from state level policy actions and budget limitations. The task force supports the inclusion of mechanisms that promote, encourage and facilitate private sector involvement in the concept development, planning and implementation phases of the future growth and development of SDSU as both a public institution and primary industry in Brookings County. The task force recognizes the desire and willingness of the private sector to continue to be meaningfully engaged in the process of growing SDSU. First and foremost, the task force recognizes that Brookings and SDSU have developed a positive town-gown relationship that must be protected and continually improved to ensure the best future for the greater community. BEDC Board Approved Statement November 17, 2010 The BEDC Board of Directors supports South Dakota State University’s desire for the development of additional beds accommodating “upper-class and graduate private-style upscale apartments, including complementary retail space”. The BEDC Board of Directors prefers that such developments incorporate the following: 1. The design and implementation of projects that will result in private sector ownership and management of the proposed housing in a configuration befitting a Division 1 collegiate campus, and 2. Private sector involvement in future development concepts. City of Brookings January 24, 2012 9 The following is a summary of previous City Council review of the Northwest Quadrant issue to include final minutes of each meeting and corresponding City Council agenda packet support. Previous City Council review of the Northwest Quadrant Issue: December 8, 2009: Presentation by SDSU officials November 9, 2010: Council request for an update December 14, 2010: Update provided by Mayor Reed March 8, 2011: Citizen Presentation April 5, 2011: Item was removed from the agenda Handout provided by BEDC December 8, 2009 Agenda Packet: Item #9. SDSU Northwest Quadrant Presentation. Representatives of South Dakota State University have requested an opportunity to update the City Council and public on University's future plans for the Northwest area of campus. MINUTES - December 8, 2009 - The Brookings City Council held a meeting on Tuesday, December 8, 2009 at 5:30 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members Julie Whaley, John Kubal, Mike McClemans, Mike Bartley, Jael Thorpe, and Tom Bezdichek. City Manager Jeff Weldon, City Attorney Steve Britzman, and City Clerk Shari Thornes were also present. SDSU Northwest Quadrant Presentation. South Dakota State University officials updated the City Council and public on the University’s future plans for the Northwest area of SDSU’s Campus. The following is a summary of their presentation: University Rationale: Northwest Neighborhood Feasibility Study follows through on Phases I & II of Residential Life and Dining Services Master Plan. It aligns with the University’s Strategic Plan by enhancing student success by engaging students in campus experience, improving retention and graduation rates, increasing graduate student enrollment, and by providing contemporary living environments. Northwest Neighborhood Strategic Objectives: 1) sustainable development, 2) fill gaps in current facilities and services for campus and community, 3) create opportunities for partnerships, 4) develop fair and equitable transaction structures, and 5) adopt consistent architectural guidelines. Feasibility Study -- Timeline and Milestones - Brailsford & Dunlavey (B&D), retained to complete study January 2009. B&D Site Visit - March 2009: Conducted student, faculty, staff and community stakeholder focus groups; toured SDSU and Brookings facilities; and met with developers & banking leadership B&D Site Visit - June 2009: Toured Agricultural Heritage Museum; Toured recently opened apartment complexes; Met with civic/business leaders & developers City of Brookings January 24, 2012 10 B&D Site Visit - August 2009: Reviewed preliminary report with SDSU and Brookings leadership and developers SDSU Participation March-August 2009: Edited and implemented student surveys; maintained on-going communication with campus and Brookings stakeholders B&D completes study and recommends potential development opportunities, October 2009. Conclusions - University-Based Projects: 1) Campus Gateway - Mature trees, curved masonry entry piers, gateway parks, 2) Historic Equine Stable - Integrate with Agricultural Heritage Museum function, and 3) Agricultural Heritage Museum - Proposed 40,000 sq. ft. building Conclusion – Partnerships: 1) Active Adult Community: Embraces national and regional trends leveraging university as an asset (e.g. Dickinson State), integrates with City efforts to build capacity for attracting this demographic, and 2) Hotel / Conference Center: Supports identified, on-campus needs, opportunity to collaborate with community and Innovation Campus B&D Conclusion: The above concepts require additional detailed analysis Apartment Complex: Analyzed data from 2008 Residential Life and Dining Services Master Plan. Site visits to SUNY-Buffalo, Drake, UND and NDSU. Interviews with Mankato State, USD, and the University of Illinois. On-campus, upper-division apartment complex would improve graduation rates. Distributed student surveys concerning apartment configuration, features and price points. Conducted seven focus groups with faculty, staff, students, administrators and community stakeholders. Reviewed rents of 102 properties; including rental houses. Target Market: Full-time juniors, seniors, graduate students, paying $300 - $399 per mo./person excluding utilities (Survey Responses = 1,455). Analysis shows target market lives 1.3 miles on avg. from campus (102 units). Relevant comparable units analyzed – 6 new high-end complexes averaging 1.7 miles from campus with rents at about: $1,060 per unit/per month (3 bedroom) or $353 per person/per month, $860 per unit/month (2 bedroom) or $430 per person/month, All rates exclude utilities Conclusion: Demand for 88 unit (300 bed) private apartment with near campus location and rents at about: $2,000 per unit/per month (4 bedroom) or $500 per person/month, $1,176 per unit/month (2 bedroom) or $588 per person/per month. Rents express in 2009 dollars and exclude utilities and charges for parking and other amenities Conclusion: Include 4,000 sq. ft. of retail to serve residential apartment. Pro forma cost estimate = $16.9 million. City of Brookings January 24, 2012 11 What is Next?: 1) Ongoing broad discussions on feasibility study conclusions, potential partnerships and implementation options for each program element, 2) Draft Request for Proposals (RFP), for review & comment for apartments that will market test the consultants’ conclusion. RFP -- A mechanism for prospective private partners to submit statements of interest or proposals following terms established in the RFP document, and 3) Anticipated RFP process for apartments: Submit to BOR request to proceed with RFP. Upon BOR approval continue development of RFP process or processes. Hold pre-issue conference to refine RFP document and process. Name review and selection advisory panel. Develop and finalize selection criteria for RFP review. Issue RFP following Board of Regents capital project policy. Collect and evaluate responses to RFP with input from advisory panel. Follow BOR policies to implement if RFP process is successful. Continue investigating interest in and options for other program elements. Discussion: Reed asked if the trend was to have students closer to campus. Yes, having the students closer to campus and a providing a mix of housing types is more desirable. He also asked, with the current campus boundaries if some redevelopment of neighborhoods was being considered. Yes. Whaley asked if the 300 unit apartment was for students only. Yes, the tenants would be upper class and graduate students. Whaley commented she serves on the adult/assisted living board task force and their recommendation was that the number of assisted living beds was adequate until 2021 and questioned why the University’s statistics cited a need in 2012-13. They responded that the 2012-13 date would just be for apartment needs. The adult community work information was less detailed and the recommendation was to continue to work with the community to determine that need. Whaley asked how much in property taxes and other incentives would be generated by these units, or would they be considered university owned and exempt? They responded the master developer would be the builder/operator/owner of the apartment facility which would be subject to taxable improvement rates. The private entity would have a ground lease with the Board of Regents. Whaley noted many developers are building apartments and the rates and occupancy numbers are down. She questioned if this was the right time for SDSU to get into this area or if this was just a major plan to start with. She commented some citizens are questioning SDSU’s involvement in this complex as well as retail uses on campus. SDSU officials said they can’t answer specifically, but it depends on responses to the RFP. The developer would do their own market tests to determine if the area could support this facility. McClemans said the concept is intriguing, but his largest concern is that 53% of housing in Brookings are rentals, which is a major cottage industry in town. These rental owners pay property taxes and make investments. He questioned if the proposed facility would be 9 or 12 month leases? He said 9 month leases greatly affect the entire community. He noted Brookings was fortunate to have a robust market through the mid 2000’s and 5% vacancy was normal. However, if overbuilding occurs and rentals don’t fill, it’s a huge problem for the entire community. University representatives clarified the proposed facility would be 88 units housing 300 people owned by a private developer. The University would evaluate and accept submissions based on predetermined criteria and it will be important to have a community-based panel in the criteria development. City of Brookings January 24, 2012 12 November 9, 2010. Minutes – November 9, 2010. The Brookings City Council held a meeting on Tuesday, November 9, 2010 at 5:00 p.m., at City Hall with the following members present: Mayor Tim Reed (arrived at 5:43), Council Members John Kubal, Keith Corbett, Mike McClemans, Tom Bezdichek, Mike Bartley and Jael Thorpe. City Manager Jeff Weldon, City Attorney Steve Britzman and City Clerk Shari Thornes were also present. Topics for future discussion. A motion was made by McClemans, seconded by Thorpe, to request a report from the Mayor about the Northwest Quadrant project in the immediate future (within two meetings). All present voted yes; motion carried. December 14, 2010. Agenda Packet: Item #1 - Update on Northwest Quadrant Mayor Reed will provide an update on South Dakota State University’s “Northwest Quadrant” project. The update is in response to Council action at the November 9th meeting. Overview and Status Report: SDSU Residential Life and Dining Services Master Plan Reissued December 7, 2010 Overview of Master Plan The SDSU Residential Life and Dining Services Master Plan was approved by the Board of Regents in October 2008. Since the baseline primary data underlying the plan is from 2007, these data are being refreshed. The Master Plan’s central theme is to create two student neighborhoods — a traditional freshmen/sophomore area on the southeast side of campus and an upper-division (junior, senior, graduate, and transfer students) on the northwest corner. Appropriate dining operations to meet the unique needs of each neighborhood are also elements of the plan. To create this planning framework, a housing self-study was conducted, main campus enrollment trends were analyzed, two consultants with unique domain expertise in university housing and associated services were engaged, and multiple market analyses using a plethora of methods including student surveys and focus groups were completed. Plan implementation calls for three phases. The campus map identifies the southeast and northwest neighborhoods. The planning process clearly demonstrated the ―one-size-fits-all approach‖ to student housing is obsolete. Student housing demand is best met by offering choices differentiated by amenity and service levels and associated price points. Thus, the plan identified a need for differential rates associated with variation in characteristics of the housing (put another way, differential costs driven by the level of amenities) to provide students with choices in both City of Brookings January 24, 2012 13 neighborhoods. Market analyses conducted as part of the planning process identified amenities preferred by freshmen and sophomores for the southeast neighborhood. Those preferred amenities on each floor include: a full kitchen, study space, laundry, social space, natural light, and privacy in bathrooms. Another attribute strongly preferred by freshmen and sophomores is proximity to academic buildings and other core facilities such as the Wellness Center and Union. An emerging demand identified during the planning process was on- or near-campus housing for upper- division and graduate students, an underserved population in today’s residence life model. A survey of upper-division students showed 79% of the respondents (970 of 1,277) wanted an opportunity to spend their entire undergraduate careers in residence on-campus in a neighborhood that met their needs. While convenience to campus was the most preferred attribute, older students preferred a more private lifestyle experience and had little interest in the socially-focused routines characteristic of their undergraduate on- campus residential life experience. The plan calls for establishing an upper-division neighborhood in the northwest corner of campus to meet the demands of juniors, seniors, and graduate students for on-campus housing. Market analyses identified this segment generally having strong preferences for independent lifestyle, a private kitchen, larger bedrooms, and private or semi-private bathroom. A small sub-segment of the upper-division student market indicated an interest in a low-cost, minimal- amenity, single-room housing option. Upper-division and graduate students expressing the strongest preference for this option can be described as intently focused on academics. The dining component of the Master Plan highlights the importance of aligning appropriate dining services in each student neighborhood for the respective market segments. The plan identified a need for additional food-service capacity on the southeast side of campus to accommodate the growth planned for this freshman and sophomore neighborhood. In the northwest neighborhood, food services need to be configured and reconfigured responding to the demands of upper-division students. The market analyses and the specialized food-service consultant emphasized the importance of location, recommending food services be conveniently located within each of the respective neighborhoods to best serve the market segments. Market surveys showed a preference for upscale convenience stores, national brands and menu choice, including lighter healthy items. Enrollment Update Total enrollment growth at South Dakota State University has averaged 3.7% per year 2000 to 2010, reaching a total of 12,816 in 2010. Enrollment and enrollment growth on the Brookings campus has to be the base for residential life and dining services planning. In the spring of 2008, as part of the University’s ongoing strategic planning process, Brookings campus enrollment modeling was initiated. The model developed is the Comfort Enrollment Model. The baseline for the model is fall 2007 enrollment. The model is used to forecast Brookings campus and total enrollment through fall 2012. The model was developed from enrollment trends for the past five years, an evaluation of markets and market share, current and projected retention and graduation rates, and an assessment of academic program capacity. This model yields an City of Brookings January 24, 2012 14 enrollment increase of 18.85%, or an increase of 1,827 students, on the Brookings campus from fall 2007 to fall 2012. Undergraduate and graduate enrollments are predicted to increase by 16.8% (1,416 students) and 32.5% (411), respectively. The following chart shows the Brookings campus actual enrollment for 2007, 2008, and 2009, an estimate for 2010, and projections from the model for 2011 and 2012. To support the planning process, Brookings campus enrollment is divided into freshman/sophomore students required by policy to live on-campus, and freshmen/sophomores, transfers, juniors, seniors, and graduate students who are eligible to live off-campus. This information is provided in Table 1. Table 1: Total Brookings Campus Enrollment On- and Off-Campus Housing Arrangements by Student Class Level 2008, 2009 Actuals; 2010 Estimate; and 2011 & 2012 Projections ACTUALS ESTIMATE PROJECTIONS CLASSIFICATION 2008 2009 2010 2011 2012 Required to live on-campus Freshmen/Sophomores Subtotal 3,418 3,229 3,680 3,784 3,896 Eligible to live off-campus Freshmen/Sophomores* 736 959 742 810 835 Transfer Students 788 772 826 827 827 Juniors 1,674 1,680 1,744 1,836 1,929 Seniors 2,045 2,053 2,132 2,245 2,357 Graduate Students 1,347 1,579 1,604 1,643 1,674 Subtotal 6,590 7,043 7,048 7,361 7,622 Total 10,008 10,272 10,728 11,145 11,518 *Includes freshmen/sophomores released from on-campus living requirement by policy & by waiver and non-degree students. Brookings campus enrollment projections support implementing the University’s Residential Life and Dining Services Master Plan. Research has shown that the availability of appropriate living environments is significantly and positively related to student success. A strategic goal of the University is to increase the retention rate to above 80% and the graduation rate to 60% or higher. Implementing the Master Plan is a key to enhancing student success, increasing the retention rate, and driving the graduation rate above 60%. The number of transfer students enrolled on the Brookings campus averaged 766 over the five years, 2006 to 2010, and topped at 826 in fall 2010. Research has shown that on-campus housing is a powerful tool to help transfer students engage in campus life and achieve a higher level of academic success. Implementing the Master Plan provides an on-campus option for transfer students. A strategic goal of the University is to foster science- and technology-based economic development. This requires faculty to continue to compete successfully for external grants and contracts to fund research programs and to successfully recruit graduate students into graduate assistantships. Researchers attracted more than $66 million in awards in 2009-2010, City of Brookings January 24, 2012 15 and total research spending was approximately $67 million during the same time. In fall 2010, 580 graduate students were on assistantships, 360 of those on research assistantships. The number of Ph.D. students grew 24%, to 286, from 2008 to 2010. Convenient housing is an important factor considered by graduate students when selecting an institution. Implementing the Master Plan provides another on-campus option for graduate students and makes the University more competitive. Implementation of Phase I The completion of Phase I of the Residential Life and Dining Services Master Plan in 2010-2011 included the construction of the Jackrabbit Village, reprogramming Waneta Hall for upper- division students and expanding dining services in the southeast neighborhood. The 411-bed Jackrabbit Village for freshmen/sophomores filled in three days. To provide students with a choice in housing prices based on the amenities offered, the following differential rate structure was implemented in 2010-2011: a base-hall rate ($1,287), an upgraded-hall rate ($1,418), and a premium-hall rate ($1,926 to $1,957). The differential rate structure was very positively received. Waneta Hall was reprogrammed for single-occupancy rooms for upper-division students for fall 2010. Unfortunately, demand from freshmen forced the discontinuation of single- occupancy rooms. For fall 2010, 52 juniors, seniors and graduate students selected single- occupancy rooms before the discontinuation. A waiting list of 105 students was established. Because of the large freshman demand, the 105 students on the waiting list were notified in early May 2010 that single-occupancy rooms would not be available to them. As the two neighborhoods began to be established for 2010, evidence from housing applications for 2010-2011 showed the strong preference of freshmen/sophomores for the southeast neighborhood and the strong preference of upper-division students for the northwest neighborhood. Freshmen/sophomores were more than three times as likely to request housing in the southeast neighborhood. Conversely, upper- division students expressed a preference for the northwest neighborhood. Table 2 shows the fall 2010 occupancy in each residential facility compared to the capacity of each. The table shows Waneta Hall with 160 sophomores in double-occupancy rooms and 52 single-occupancy rooms for upper division/graduate students. The Annex has been programmed for single occupancy by sophomores for some time. In 2010, total number of residents (demand) exceeds capacity (supply) by 8.97% (303 beds). Not considering any enrollment growth, additional on-campus supply is needed to accommodate current demand to achieve equilibrium. Table 2: Residential Facilities Capacity and Fall, 2010 Occupancy Required to live on-campus (Freshmen/Sophomores) Facility Tenants Capacity % of Capacity Annex (singles sophomores) 49 52 94.23 City of Brookings January 24, 2012 16 Berg/Bailey (apartments sophomores) 55 0 NA** Binnewies 512 496 103.23 Brown 404 390 103.58 Caldwell 300 300 100 Hansen 451 436 101.57 Jackrabbit Village 425 411 103.4 Mathews 370 358 103.35 Pierson 458 446 102.69 Waneta 1 6 16 0 100.00 Young 4 9 48 8 101.63 TOTAL 3,680* 3,537 104.04 Eligible to live off-campus (Upper-class/Grad Students) Facility Tenants Capacity % of Capacity Berg/Bailey (apartments) 279 279 100.00 Family Student Housing (apartments) 107 88 121.59 Waneta (singles) 52 52 100.00 TOTAL 438 419 104.53 *This includes a dayroom occupancy of 143; Waneta partially reverted to double occupancy w/160 freshmen/sophomores; Occupancy 303 > Capacity. Implementation of Phase II Completion of Phase I of the Residential Life and Dinning Services Master Plan began to establish two neighborhoods focused on two distinct market segments – freshmen/sophomores and upper- division/graduate students, respectively, in a southeast neighborhood and a northwest neighborhood. Phase II calls for transferring the freshman and sophomore housing capacity to the southeast neighborhood and adding to this capacity at this location so supply meets current demand. In the northwest neighborhood, additional single-occupancy rooms and an upscale contemporary-style apartment option will address the demands from upper-division/graduate students. Based on fall 2010 enrollment, an additional supply of 739 new beds is needed to meet the current demand from freshmen and sophomores in the southeast neighborhood and establish equilibrium. To mitigate the risk of an unforeseen decline in enrollment, the recommendation for Phase II is an increase of 500 new beds in the southeast neighborhood for freshmen and sophomores. To implement Phase II in the northwest neighborhood, 350 single-occupancy rooms will be available for upper-division students — 218 and 80 rooms in Hansen and Waneta Halls, respectively, will be added to the 52 rooms in Waneta Hall deployed in 2010 as single- occupancy rooms for upper-division students. The 52 rooms in the Annex occupied by City of Brookings January 24, 2012 17 sophomores will continue. Of the 350 single-occupancy rooms, 187 would be reserved for academically strong sophomores (taking demand pressure off of the southeast neighborhood) and 163 would be allocated to upper-division/graduate students. The Berg/Bailey apartments would accommodate 320 upper-division students with no sophomores in these facilities as in 2010. (In 2010, 55 sophomores are in the apartments because of capacity limitations in other halls.) The proposed upscale, private, contemporary-style apartment would be configured and sized to meet market demand via a request for proposal (RFP) process. When completed, this apartment would provide an additional on-campus option for the upper-division/graduate student market segment. Minutes – December 14, 2010 - The Brookings City Council held a meeting on Tuesday, December 14, 2010 at 5:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members John Kubal, Keith Corbett, Mike McClemans, Tom Bezdichek, Mike Bartley and Jael Thorpe. City Manager Jeff Weldon, City Attorney Steve Britzman and Deputy City Clerk Bonnie Foster were also present. Update on Northwest Quadrant. Mayor Reed provided an update on SDSU’s Northwest Quadrant project. He has also invited SDSU staff to February Council Retreat to provide additional updates. March 8, 2011 Agenda Packet Item #17. Citizen presentation on proposed SDSU Northwest Quadrant Project. Per the enclosed letter, John Mills and Jim Flippin have requested time on the meeting agenda to discuss this issue with the City Council. Minutes - March 8, 2011. The Brookings City Council held a meeting on Tuesday, March 8, 2011 at 5:30 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members John Kubal, Mike McClemans, Tom Bezdichek, Mike Bartley, Jael Thorpe and Keith Corbett. City Manager Jeff Weldon, City Attorney Steve Britzman and City Clerk Shari Thornes were also present. Citizen presentation on proposed SDSU Northwest Quadrant Project. A number of individuals presented information and expressed concern regarding the proposed impact the SDSU NW Quadrant will have on the private business sector in Brookings. City of Brookings January 24, 2012 18 April 5, 2011 Agenda Packet (This item was removed from the agenda – no action was taken.) Other Business Item #17. Action on Resolution No. 47-11, a public request for position on SDSU Northwest Quadrant. The City has received a draft resolution from developers in the community requesting the Council’s adoption of said resolution in opposition to the Northwest Quadrant project. Resolution No. 47-11 - Resolution pertaining to the SDSU Northwest Quadrant Project Whereas, the City of Brookings encourage the South Dakota Board of Regents, as they review and oversee the activities of South Dakota colleges and universities, to work with the university system to avoid unwarranted expansion into activities that compete with the private enterprise, business commerce, and economic development efforts of South Dakota’s communities; and Whereas, the City of Brookings encourage the Board of Regents to be mindful of the potential property tax revenue losses, so critical to support our K-12 schools, as well as local governance revenue needs, that these intrusions represent and to override any expansions into these areas that have not had significant local review/input and do not finally carry broad local and non-institutional support. Now, Therefore, Be It Resolved that the City of Brookings opposes the SDSU Northwest Quadrant Project due to the potential effects it would have on the Brookings Community. Handout from BEDC. Brookings Economic Development Corporation - Northwest Campus Task Force Position Recommendation: In April, 2010 a task force of BEDC members was created and charged with the following task: To determine if the BEDC Board of Directors should consider taking a position on the NW Campus 300 bed apartment building project, and if so, what should that position include. Task Force should consider: The need for housing Housing alternatives Appropriate locations Impact on SDSU Impact on the community Factors related to fair competition Prior to providing a recommendation to the BEDC Board of Directors for consideration, it may be useful to provide first, a brief overview of events leading to this recommendation, and second, a brief summary of the complexities involved in considering a position on this topic. City of Brookings January 24, 2012 19 Overview of Events In September 2009 South Dakota State University unveiled a concept plan for the northwest corner of the SDSU campus. This plan document represents one component of a master plan development concept for SDSU. The concept plan is depicted in the "Northwest Quadrant Mixed-Use Development Feasibility Study Final Report" prepared by Brailsford and Dunlavey. The report suggests a market exists for the establishment of an "upper-class and graduate private-style upscale apartment including complementary retail space." Although the feasibility study introduces additional recommendations for student apartments, retail, active adult housing, and a hotel conference center; the task force considered only that portion of the student housing currently In question, the 300 bed upper-class and graduate facility. During the month of November 2009, BEDC conducted two meetings with local developers to listen to their thoughts on the Northwest Quadrant study. The initial meeting was a "developer only" meeting intended to provide developers with a forum to express their support or concerns for the proposed project. The second meeting was organized to provide President Chicoine, SDSU personnel and developers an opportunity to engage in discussion and questions related to the project, process and timing. Developer concerns addressed during the sessions included topics such as the potential for unfair competition with a public entity involved, market vacancy rates, a changing role and mission for SDSU, tax loss concerns, the bond financing process and potential inability of local developers to bid, project ownership, and more. Additional presentations and discussions were held at BEDC board meetings during which the BEDC Board of Directors decided to form the BEDC Northwest Campus Task Force. A Complex Issue BEDC's mission is "To build an economy that supports the community's vision of a quality place to live, work and play." A primary role, or responsibility, of the BEDC in the process of economy building is to undertake efforts that expand, create, or recruit primary industry to the area. South Dakota State University is the community's major employer and is considered a primary industry. Accordingly, an evaluation of the proposed 300 bed apartment project and SDSU's role in the provision of student housing should be undertaken within the context of SDSU's function as a primary industry benefiting the Brookings area. An evaluation of this nature presents numerous questions for consideration which may be derived from factual and projected data, perceptions and skepticism, economic growth theory, and interpretation of appropriate roles and responsibilities of public bodies. Although this type of analysis is well beyond the scope of the committee's intended role and budget, it is important that a sampling of questions and viewpoints raised by the committee be noted for illustrative purposes. These questions and viewpoints are posed from the various perspectives represented in the discussion, as follows: City of Brookings January 24, 2012 20 Local Developer Perspective Does a market exist for the number of upper-class and graduate private-style upscale apartments proposed? Will the project be publicly or privately owned and operated? Will the project pay property taxes on structures and some form of payment in lieu of taxes on land that results in a level playing field with private developments? Can the project be structured to ensure that private ownership is feasible? Could enhanced public transportation negate the desire of students to live close to campus? The private sector has been a primary partner in the growth of SDSU by providing housing for students. SDSU Perspective Upper-division housing close to campus is needed to be competitive in the market place. Graduate students need housing in close proximity to laboratory space. Some upper class students and transfer students desire to be close to, and participate in, the campus experience. Revenue generation is important to operation and maintenance programming at the university. Growth in upper-class and graduate students is imperative to SDSU's desire for increased research activity and long term university success. Community Perspective Brookings recognizes that most new economic growth will come from within. SDSU is a major Brookings employer and industry. New and emerging technologies emanating from SDSU will create new growth opportunities. What percentage of new student growth will SDSU capture, and what remaining opportunity can be captured by the local development community? The private sector has responded to the need for student housing alternatives. Some projects should be upheld as models (in their respective day) while the quality, location, design and safety of others are, at times, questionable. The community is interested in retaining and building upon the current town/gown relationship. However, it is also important for the community to grow the tax base, protect private sector investments that contribute to the overall vision/goals of the community, and ensure, when possible, the use of local investors and resources in public/private development opportunities. To what extent can SDSU's growth potential create beneficial economic impacts for the community and private sector that offset potential losses that may be created by SDSU ownership of the proposed 300 bed apartment complex. The questions stated above demonstrate the complexity of the issues that should be investigated to properly develop a position statement based upon the merits of the City of Brookings January 24, 2012 21 proposed project and its impact on the Brookings community. This type of analysis is beyond the scope of the task forces mission and resources. Therefore, a recommendation by the task force should be cognizant of, and reflect the desires of, the primary stakeholders impacted by the proposal. These stakeholders Include SDSU students, SDSU, private developers, and the community. Conclusions that may be drawn from the task force discussions include the following: The task force supports the provision of quality upper-class and graduate student housing located both near campus and throughout the community. The task force supports future growth of SDSU as a primary employer and industry in the community recognizing this growth will positively impact the community and area economy. The task force is cognizant of the dilemma facing SDSU resulting from state level policy actions and budget limitations. The task force supports the inclusion of mechanisms that promote, encourage and facilitate private sector involvement in the concept development, planning and implementation phases of the future growth and development of SDSU as both a public institution and primary industry in Brookings County. The task force recognizes the desire and willingness of the private sector to continue to be meaningfully engaged in the process of growing SDSU. First and foremost, the task force recognizes that Brookings and SDSU have developed a positive town-gown relationship that must be protected and continually improved to ensure the best future for the greater community. BEDC Board Approved Statement November 17, 2010 The BEDC Board of Directors supports South Dakota State University's desire for the development of additional beds accommodating "upper-class and graduate private-style upscale apartments, including complementary retail space". The BEDC Board of Directors prefers that such developments incorporate the following: 1. the design and implementation of projects that will result in private sector ownership and management of the proposed housing in a configuration befitting a Division I c ollegiate campus, and 2. private sector involvement in future development concepts. Minutes - April 5, 2011. The Brookings City Council held a meeting on Tuesday, April 5, 2011 at 5:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members John Kubal, Mike McClemans, Tom Bezdichek, Mike Bartley, Jael Thorpe and Keith Corbett. City Manager Jeff Weldon, City Attorney Steve Britzman, and City Clerk Shari Thornes were also present. REMOVED FROM AGENDA: #17. Action on Resolution No. 47-11, a public request for position on SDSU Northwest Quadrant. City of Brookings January 24, 2012 22 5:00 P.M. WORK SESSION Work Sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 2. Review of Liquor Store draft Request for Proposal. TO: Mayor and City Council Members FROM: Jeff Weldon, City Manager RE: Continued discussion about the Municipal Liquor Store Pursuant to Council direction of December 20, 2011, you wanted to return to discussion about governance issues pertaining to the future of the Brookings Municipal Liquor Store. Your last official action was to direct staff to develop contents of a potential Request for Proposal (RFP) for alternative governance models. Those items were listed in the Council meeting packet from November 15, 2011. For the benefit of continued discussion, I have enclosed the packet items from previous Council discussions on this topic. In order to proceed with further examination of this issue, I suggest we must specifically decide what model of governance, as an option, we want to examine. Then, we need to analyze that model for its financial feasibility to determine whether or not that model puts the City in a favorable or unfavorable financial position relative to our current operation. That is the only quantitative and purely objective manner in which to proceed. If we are not willing to undertake this exercise, there appears nothing more to do on the subject. In addition to a financial position, we discussed somewhat the issue of customer convenience in terms of additional locations around the community. Without question, any private license-holder is going to prefer an exclusive license, which reduces the number of locations. For multiple license-holders, the product line and shelf space for each retailer is likely to be significantly smaller, meaning product selection will be minimal. This fact would appear to be contrary to the goal of customer convenience when you compromise product line for additional locations. In essence, one goal is sacrificed for the other; not a very favorable solution, in my opinion. Given Brookings’ current size, I believe additional stores will compromise the profitability of all of them. Perhaps in the future, if we experience sufficient growth, additional stores would be profitable. This is my speculation and a detailed market study would be needed to conclusively make a determination of this question. City of Brookings January 24, 2012 23 11/15/2011 Council Packet Information TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Information pertaining to Brookings Municipal Liquor Store During the September 27th Council meeting work session, you directed staff to assemble some information pertaining to options for management and operations. Attached are the minutes from that work session discussion as a reminder. Models of Operation A central theme which seemed to be the genesis of this issue has to do with the various governance and management options of an off-sale liquor enterprise in the community. Also attached is the report commissioned by the City Council in 2003 “Review of Brookings Municipal Liquor Store” by Lyndon M. Griffin. Section IV, Options and Recommendations (C) Privatization on pages 11-14 provide information and analysis pertaining to the various options other than municipal operations. Generally, the various options of governance are as follows: 1) Sell the operation and issue an exclusive off-sale license to one private operator. 2) Sell the operation and issue multiple off-sale licenses to as many operators as the Council deems appropriate. 3) Retain ownership of the operation and turn over operations through a management agreement to a private operator with a payment to the City prescribed through a manner, method, or formula specified in the contract. 4) If the Council wishes to increase the number of locations, additional municipal off- sale stores could be developed. 5) When the current lease expires, do not renew the lease but instead build/own a new municipal store at a different location. 6) Continue to operate our own municipal off-sale, but also issue private off-sale licenses. 7) Change nothing; maintain the status quo. Page 19 provided a recommendation of retaining the municipal operation model and suggested a new location and operational changes to increase profitability by adjusting gross profit margins. “. . . The operation is very stable and well managed regarding all operating expenses. Substantial additional profits can be attained by adjusting gross profit margins and/or relocating to an expanded facility in a high traffic flow site and consumer visibility. There appears to be no significant financial reason to sell the business or subrogate to a management contract. The City would greatly benefit from maximizing the success of the current operation. Continuing city operation of the store appears to be the best way to insure the City’s ‘control’ responsibility of avoiding sales to minors and/or intoxicated persons.” City of Brookings January 24, 2012 24 If the City Council wishes to return to the consideration of the options of ownership/operation models, the descriptions in Section IV are instructive. The strength of a chain liquor store, such as Surdyk’s or MGM Liquor Warehouse, provides higher name recognition, and I am unaware if they would look at a market this small. Typically, such chains will require larger, metropolitan areas. Even so, such chains typically send their profits to their headquarters and are not reinvested where they are earned. Cost of owning property for a municipal liquor store Following the Griffin report, the City Council subsequently entered into a lease at the Brookings Mall for 12,500 square feet of retail space and moved the store. The 10-year lease expires in 2016 with an option to renew for a five-year term with the identical terms and conditions. The first year lease cost was $76,000, and it contains an escalator of two percent per year. By the end of the initial 10-year term, the lease will cost $744,412 after some rebate adjustments. We pay our own utilities, but the parking lot is included in the rent. We also have common area maintenance (CAM) costs in addition to the rent which can vary slightly from year to year and are standard for retail rental in malls. We used the net sales proceeds from the sale of the old store to generate approximately $300,000 to invest in leasehold improvements, furnishings, fixtures, and equipment outfitting the new store. The assertion was also previously raised that as much as $500,000 of General Fund was used for improvements to the new store. This is not correct. No General Fund revenue has been used to pay for any portion of the new store. Alternatively, if we were to replace the rental store with an owned facility, we can expect to have approximately $100 per square foot in construction costs for commercial space. To duplicate an owned facility with 12,500 square feet would cost just over $2 million for basic construction, fees, contingency, furnishings, fixtures, and equipment but excluding land, utilities, and site work. Cost Accounting Charge to Override Operation The liquor budget contains a line-item cost charged against the override part of the operation in the amount of $40,000 per year. This is the only cost charged against this revenue stream. The purpose is to charge to the override revenue the cost of financial administration of the override by the various staff who process the override. Managing the override is a detailed financial and time-consuming process and true cost accounting practices dictate that costs incurred as a result of managing this service be charged against that service. This amount was established several years ago as a result of an estimated time management study, and the amount has never been adjusted. This charge means the override pays its fair share and is not unduly subsidized by the Retail side of the liquor operation. As a result of this issue being questioned, staff has undertaken another time management study. The following are salary/benefit costs of various employees associated with accounting for the override: 1. Liquor store clerks per week $ 84.35 2. Finance Accounting Clerk per week $ 55.44 City of Brookings January 24, 2012 25 3. Liquor Store Accountant per week $666.88 4. Liquor Store Manager per week $ 81.88 TOTAL $888.55 X 52 weeks $46,204.60 per year In order to have an accounting system with sufficient internal controls, several employees are utilized for cross-checking and verification of the process. In order to effectively account for the true cost of processing the override, the retail should be charging the override an additional $6,204 per year beyond what is currently charged. Operational Transfers The attached chart indicates the history of the transfers from the liquor operation to other funds. The transfers have greatly helped supplement the General Fund with an alternative revenue stream aiding in general operations of the City. The transfer has also assisted with providing capital loans to the golf course for new mowers and the Street Department for a grader replacement. The transfer also helps with cash flow for the golf course operations; a subsidy which otherwise would be necessary from the General Fund. Liquor store transfers can be viewed as a ‘shareholder dividend’ being paid back to the owners since it is a reinvestment in other City operations and services. The transfer comes from both the Override and Retail sides of the operation. For 2012, the total net profit from the override and retail operation was $828,326 of which 43 percent was generated from the retail operation and 57 percent was generated from the override; and made a combined transfer of $500,000. For 2011 and 2012, the transfers are $700,000 and $725,000 respectively. If we do not have a municipal retail operation, we lose that 43 percent transfer, or $215,000, $301,000, and $311,750 respectively. If we change our governance structure in favor of a private arrangement, we need to determine a method to replace this revenue stream as the General Fund is heavily dependent upon it. Wholesale purchases by a private off-sale store would also pay the override, so there would be a revenue increase from this. Whether or not the replacement override from private off-sale stores would be more or less than the net profit from a municipal off-sale is speculative, at best. Profit Goal Established and Attained The City Council established a profit goal of eight percent on net sales from the retail operation. Historically, profitability at this level had been sluggish at the old store, which was one of the reasons the Council re-evaluated the operation which precipitated the Griffin Study. After the re-location, profitability began to improve with the new location, but marketing, customer acclimation to a new location, and ‘ramp-up’ to a certain degree, suppressed profitability as is to be expected with such changes. Upon immediately being given this profitability goal from the City Council, we instituted some operational changes to reduce expenditures and increase revenue. Within three quarters, the goal of eight percent net profit was realized and has been there ever since. Our highest quarter was 2009 fourth quarter when our net profit was 12.63 percent. This goal was met in the face of increased wine licenses issued to other retailers thus increasing competition. I am convinced our net profit would be even higher if we had not approved private wine licenses. Some of those operational changes City of Brookings January 24, 2012 26 included: increased and more aggressive marketing and advertising; reducing staffing by downgrading the Assistant Manager position to a Head Sales Clerk position; not filling a vacant sales clerk position via attrition; more efficient staffing and scheduling; increasing store hours on Sundays; more effective promotion of sales and specials; and perhaps most importantly, implementing industry standards for inventory pricing. Because of these operational changes, we now have more net sales revenue from the retail operation than we would likely have if we were to charge the same level of purchases to a private store through the override. Industry Standards for Certain Operational Benchmarks In addition to net profit, there are other metrics that should be examined. The Griffin Study suggests the industry standard for gross profit of retail stores should be at 25 percent (p.3). At the old store, the gross profit was 19 percent as noted in the study. For 2010, the current store was at 25.28 percent. The Griffin Study also suggests advertising be budgeted at one percent of gross sales (p.4). For 2010, we spent $25,000 on $3,626,713 of gross sales which is exactly one percent. For 2011, we budgeted $30,000 in advertising. The Griffin Study further suggests employee cost ratio as a percentage of sales should not exceed 10 percent (p.4). For 2010, our personnel costs exceeded this target level at only nine percent. For year-to-date 2011, we are running at exactly 10 percent. Customer Satisfaction Survey Previously, the Council briefly discussed the possibility of undertaking a customer service / satisfaction survey; and that our website could be used to do that. Unfortunately, use of websites for public opinion surveys are not very scientific, and therefore do not provide much usefulness for such information in this process. We would need to undertake a process that was scientifically valid and statistically reliable for such an exercise to be of any value, and the Council has not yet authorized such a project. Consideration of Additional Off-Sale Retail Outlets As Brookings continues to grow, the question can be asked as to whether or not we are large enough to support additional retail outlets at different locations around the community. Obviously, communities much smaller than Brookings have more than one retail outlet for spirits. We already have numerous retail outlets for beer and wine. This becomes an issue of market size and demographics. The answer to this question is beyond the scope of this memo, but the question should probably be pursued. If the City were to consider additional off-sale locations, or any partnership with a management contract for additional locations, commissioning another study would probably be advisable. Without the benefit of quantifiable data from a study, my speculation is that additional municipal off-sales would not be profitable as operating and capital expenses would likely exceed revenue. If the City were to get out of the municipal operation and opt for private liquor stores by City of Brookings January 24, 2012 27 issuing multiple off-sale licenses to the private sector, that will be for the market and the private sector to determine. If we chose the latter, we would then have to face the issue of establishing a liquor license fee for an off-sale liquor license. City of Brookings January 24, 2012 29 Excerpt from the Brookings City Council Meeting, September 27, 2011 The Brookings City Council held a meeting on Tuesday, September 27, 2011 at 5:00 p.m., at City Hall with the following members present: Mayor Tim Reed, Council Members John Kubal, Mike McClemans, Tom Bezdichek, Ope Niemeyer, Jael Thorpe (left at 6:00 p.m. and returned at 6:30 p.m.) and Keith Corbett. City Attorney Steve Britzman, City Manager Jeff Weldon and City Clerk Shari Thornes were also present. Brookings Municipal Liquor Store. The City Council discussed the continued operation of the Municipal Liquor Store. McClemans presented options previously considered before the Liquor Store moved to its current location. Other topics/issues discussed included the following: Are there reasons to do something different; consideration of additional locations; review of current location lease terms; and ways to improve the override. There was consensus to hold a special two-hour retreat on the BMLS issue only. Meeting to be held in the City Council chambers on an “off” Tuesday commencing at 5:00 p.m. The following background information was requested: public input options--satisfaction survey options (website); estimated replacement costs for land and building; standard industry margins; consultant reports and labor costs. City of Brookings January 24, 2012 50 5:00 P.M. WORK SESSION Work Sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 3. City Council Member Ex-Officio Reports. Pursuant to council direction, “City Council Member Ex-Officio Reports” will be a standing agenda item at all Council Work Sessions. The Council Members that serve as Ex-Officio members on the Brookings Health System Board of Trustees and Utility Board will provide verbal reports regarding recent meetings they have attended. Brookings Municipal Utility Board: 1. Council Member Niemeyer 2. Council Member Corbett Brookings Health Systems Board: 1. Council Member Kubal 2. Council Member McClemans City of Brookings January 24, 2012 51 5:00 P.M. WORK SESSION Work Sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 4. Joint Powers Board Council Members’ Report. Pursuant to council direction, “Joint Powers Board City Member Updates” will be a standing agenda item at all Council Work Sessions. The Council Members serving on the Joint Powers Board will provide verbal updates regarding recent meetings they have attended. Mayor Tim Reed & Council Member Kubal City of Brookings January 24, 2012 52 5:00 P.M. WORK SESSION Work Sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 5. City Council member introduction of topics for future discussion. Any Council member may request discussion of any issue at a future meeting only. Items cannot be added for action at this meeting. A motion and second is required stating the issue, requested outcome, and time frame. A majority vote is required. City of Brookings January 24, 2012 53 5:00 P.M. WORK SESSION Work sessions are open to the public. During the work session the city staff would brief the council on items for that particular meeting, introduce future topics, and provide a time for Council members to introduce topics. 6. Review of Council Agenda, Invites and Obligations. Date Day Event & Brief Description Time Location / Town / Address / Directions February 7 Tuesday Rib Dinner with your Legislator Kings Inn, Pierre February 8 Wednesday Municipal Government Day Pierre February 9 Thursday Leadership Brookings 8:30 – 12:00 noon City Hall February 13 Monday Brookings/SDSU Day at the Capitol Pierre February 14 Tuesday Council Meeting 5:00 p.m. Council Chambers February 15 Wednesday Goal Setting Reception & Dinner with Leadership Team 4:00 p.m. – 6:30 p.m. McCrory Gardens Educational Visitors Center February 16 Thursday Goal Setting Retreat 8:00 a.m. – 5:00 p.m. McCrory Gardens Educational Visitors Center February 28 Tuesday Council Meeting 5:00 p.m. Council Chambers March 10-14 NLC – Congressional City Conference Washington, DC March 19-23 Board of Equalization Meeting Room March 27 Tuesday Council Meeting 5:00 p.m. Council Chambers April 12 Thursday Council Meeting / Election Canvass 5:00 p.m. April 24 Tuesday Council Meeting 5:00 p.m. Council Chambers May 8 Tuesday Council Meeting 5:00 p.m. Council Chambers May 22 Tuesday Council Meeting 5:00 p.m. Council Chambers June 12 Tuesday Council Meeting 5:00 p.m. Council Chambers June 26 Tuesday Council Meeting 5:00 p.m. Council Chambers 54 6:00 p.m. REGULAR MEETING 1. Call to order. 2. Pledge of Allegiance. 3. Record of Council Attendance. 4. Action to approve the following Consent Agenda Items: A. Action to approve the agenda. B. Action on Resolution No. 12-12, a Resolution fixing time and place for Hearing Upon Assessment Roll for Sidewalk Assessment Project No. 2010-01SWR (2010 Sidewalk Repair Sites). C. Action on Resolution No. 13-12, a Resolution fixing time and place for Hearing Upon Assessment Roll for Sidewalk Assessment Project No. 2011-01SWR (2011 Sidewalk Repair Sites). D. Action on Resolution No. 14-12, a Resolution authorizing Change Order No. 2 (CCO#2 Final) for 2011-02BLD City of Brookings Garage Project, Clark Drew Construction. E. Action on Resolution No. 15-12, a Resolution authorizing Change Order No. 1 (CCO#1 Final) for 2011-06STI Chip Seal Project, Bituminous Paving, Inc. F. Action on Resolution No. 16-12, Federal Aid Surface Transportation Program Resolution for County and Urban Projects. G. Action on Resolution No. 17-12, a Resolution authorizing the City Manager of the City of Brookings, South Dakota to sign the Cooperative Fire Agreement with the State of South Dakota. H. Action on Resolution No. 28-12, A Resolution Authorizing the Mayor to Sign Documents for P-3301(10) PCN 01D6, Medary Avenue from 6th Street to 15th Street South, Brookings, SD. I. Action to cancel the March 13, 2012 city council meeting. J. Action on Resolution No. 18-12, A Resolution Authorizing the Mayor to Sign Documents for P-PH 0014(172)418 PCN 01TJ, US Highway 14 Project, Brookings, SD. K. Action on Resolution No. 19-12, a Resolution authorizing Change Order No. 1 for 2011-01 Gateway Project, Clark Drew, Inc. L. Action on an Abatement request from Brookings Health Systems to abate a portion of the 2011 taxes in the amount of $8,481.10 for part of Lot 1, Block 4, Mayland’s First Addition, also known as 100 22nd Avenue. M. Action on an abatement request from Brookings Health Systems to abate a portion of 2011 taxes in the amount of $844.56 for Block 8, Mayland’s First Addition, Bare Land. N. Action on an appointment to the Board of Adjustment. O. Action on Resolution No. 27–12, Resolution Authorizing Change Order No. 2 (CCO#2 Final) for 2011-03BLD Airport Building Addition Project, Clark Drew Construction. Motion to Approve, Request Public Comment, Roll Call 5. Items removed from Consent Agenda. Open Forum/Presentations/Reports 6. Presentation of Annual Dr. Martin Luther King Day Awards. 7. Open Forum. 8. SDSU Student Senate Report. 55 Contracts and Change Orders 9. Action on Resolution No. 20-12, a Resolution awarding bids for the Brookings Nature Park Phase I, Fisheries Improvements. Action: Motion to approve, request public comment, roll call First Readings 10. Ordinance No. 01-12: An Ordinance amending the Zoning Ordinance pertaining to banners and temporary signs. Public Hearing: February 14th Alcohol Licenses 11. Action on Resolution No. 21-12, a Resolution establishing the fee for issuance of Operating Agreements in the City of Brookings. (This Resolution would rescind Resolution No. 128-11, adopted on 8/23/11.) Action: Motion to approve, request public comment, roll call 12. Action authorizing the City Manager to sign Operating Agreements for on-sale liquor at the following locations for a term of ten years with a five year renewal: A. Resolution No. 22-12: Brownstone Restaurant and Bar, Brennan and Lori Sullivan, owners, located at Lot 7, Block 3, Original Plat Addition, City of Brookings, also known as 313 Main Avenue. B. Resolution No. 23-12: BraVo’s, Kip and Michelle Pharis, Owners, 610 Medary Avenue, Brookings, South Dakota, legal description: Lots 3-4-5, Randi Peterson Addition. Action: Motion to approve, request public comment, roll call 13. Public hearing and action on Resolution No. 24-12, a Resolution authorizing the City Manager to sign a new Operating Agreement for On-Sale Liquor at one of the following locations for a term of ten years, with a five year renewal: A. Gonz Productions, Inc., dba Main Street Pub & Grill, 408 Main Avenue, Lot 5, Block 7, Original Plat Addition, Garner Hansen, owner. B. Old Market, LLC, dba Old Market Eatery, 424 5th Avenue, Lots 15-18, Block 7, Original Plat Addition, Katie Knutson and Jael Thorpe, owners. Action: Open and close public hearing, motion to approve, roll call Other Business 14. Action on Resolution No. 25-12, a Resolution providing for the Creation of Tax Incremental District Number Six (#6), City of Brookings. Action: Motion to approve, request public comment, roll call 15. Action on Resolution No. 26-12, a Resolution of Intent to create Business Improvement District Number One. Action: Motion to approve, request public comment, roll call 16. Market Analysis and letter of support for Haan Development Housing Project. Action: Motion to approve, request public comment, roll call 17. Adjourn. City of Brookings January 24, 2012 56 CONSENT AGENDA #4 4. Action to approve the following Consent Agenda Items: * A. Action to approve the agenda. B. Action on Resolution No. 12-12, a Resolution fixing time and place for Hearing Upon Assessment Roll for Sidewalk Assessment Project No. 2010- 01SWR (2010 Sidewalk Repair Sites). C. Action on Resolution No. 13-12, a Resolution fixing time and place for Hearing Upon Assessment Roll for Sidewalk Assessment Project No. 2011- 01SWR (2011 Sidewalk Repair Sites). D. Action on Resolution No. 14-12, a Resolution authorizing Change Order No. 2 (CCO#2 Final) for 2011-02BLD City of Brookings Garage Project, Clark Drew Construction. E. Action on Resolution No. 15-12, a Resolution authorizing Change Order No. 1 (CCO#1 Final) for 2011-06STI Chip Seal Project, Bituminous Paving, Inc. F. Action on Resolution No. 16-12, Federal Aid Surface Transportation Program Resolution for County and Urban Projects. G. Action on Resolution No. 17-12, a Resolution authorizing the City Manager of the City of Brookings, South Dakota to sign the Cooperative Fire Agreement with the State of South Dakota. H. Action on Resolution No. 28-12, A Resolution Authorizing the Mayor to Sign Documents for P-3301(10) PCN 01D6, Medary Avenue from 6th Street to 15th Street South, Brookings, SD. I. Action to cancel the March 13, 2012 city council meeting. J. Action on Resolution No. 18-12, A Resolution Authorizing the Mayor to Sign Documents for P-PH 0014(172)418 PCN 01TJ, US Highway 14 Project, Brookings, SD. K. Action on Resolution No. 19-12, a Resolution authorizing Change Order No. 1 for 2011-01 Gateway Project, Clark Drew, Inc. L. Action on an Abatement request from Brookings Health Systems to abate a portion of the 2011 taxes in the amount of $8,481.10 for part of Lot 1, Block 4, Mayland’s First Addition, also known as 100 22nd Avenue. M. Action on an abatement request from Brookings Health Systems to abate a portion of 2011 taxes in the amount of $844.56 for Block 8, Mayland’s First Addition, Bare Land. N. Action on an appointment to the Board of Adjustment. O. Action on Resolution No. 27–12, Resolution Authorizing Change Order No. 2 (CCO#2 Final) for 2011-03BLD Airport Building Addition Project, Clark Drew Construction. *Matters appearing on the Consent Agenda are expected to be non-controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. ACTION: Motion to Approve, Request Public Comment, Roll Call City of Brookings January 24, 2012 57 CONSENT AGENDA #4 B. Action on Resolution No. 12-12, a Resolution fixing time and place for Hearing Upon Assessment Roll for Sidewalk Assessment Project No. 2010-01SWR (2010 Sidewalk Repair Sites). The 2010-01SWR is the annual concrete replacement project which entailed construction of miscellaneous concrete work in the 2010 sidewalk area and also included repair of curb and gutter, fillets, valley gutters, curb ramps and homeowner trip hazard sidewalks. Also included with this project was concrete pavement repair on Railroad Street and new sidewalks along the City-owned lots on 15th Street South west of Camelot Intermediate School. The project has been completed and the City Engineer is proceeding with the assessment process to bill the property owners for their sidewalk construction costs. The assessment cost for each landowner is calculated by using their specific sidewalk bid cost plus the 6% engineering and administration fee. Resolution No. 65-10 authorized the sidewalk assessment project. The City will mail each property owner a notice of the hearing and a copy of the assessment roll which details the cost of the sidewalk repairs. This resolution will set the time and place for the public hearing, which will be held on February 28, 2012 at the 6:00 PM City Council Meeting. City of Brookings January 24, 2012 58 Resolution No. 12-12 Resolution Fixing Time and Place for Hearing Upon Assessment Roll for Sidewalk Assessment Project No. 2010-01SWR (2010 Sidewalk Repair Sites) Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows: 1. The assessment roll for Sidewalk Assessment Project No. 2010-01SWR having been filed in the office of the City Clerk on the 20th day of January, 2012, the City Council shall meet in the Council Chambers, City Hall, in said City on Tuesday, the 28th day of February, 2012, at 6:00 o'clock PM, the said date being not less than twenty (20) days from the filing of said assessment roll for hearing thereon. 2. The City Engineer is authorized and directed to prepare a notice describing, in general terms Sidewalk Assessment Project No. 2010-01SWR, the date of filing the assessment roll, the time and place of hearing thereon, stating that the assessment roll will be open for public inspection at the office of the City Engineer and referring to the assessment roll for further particulars. 3. The City Clerk is authorized and directed to publish said notice in the official newspaper at least one (1) week prior to the date set for hearing and to mail a copy thereof, by first class mail addressed to the owner or owners of any property to be assessed at his, her or their last mailing address as shown by the records of the Director of Equalization at least one (1) week prior to the date set for said hearing. Passed and approved this 24th day of January 2012. CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: ___________________________ Shari Thornes, City Clerk City of Brookings January 24, 2012 59 CONSENT AGENDA #4 C. Action on Resolution No. 13-12, a Resolution fixing time and place for Hearing Upon Assessment Roll for Sidewalk Assessment Project No. 2011-01SWR (2011 Sidewalk Repair Sites). The 2011-01SWR is the annual concrete replacement project which entailed construction of miscellaneous concrete work in the 2011 sidewalk area and also included repair of curb and gutter, fillets, valley gutters, curb ramps and homeowner trip hazard sidewalks. Also included with this project was concrete pavement repair on Railroad Street and new valley gutter on City park property west of Indian Hills Road. The project has been completed and the City Engineer is proceeding with the assessment process to bill the property owners for their sidewalk construction costs. The assessment cost is for each landowner is calculated by using their specific sidewalk bid cost plus the 6% engineering and administration fee. Resolution No. 78-11 authorized the sidewalk assessment project. The City will mail each property owner a notice of the hearing and a copy of the assessment roll which details the cost of the sidewalk repairs. This resolution will set the time and place for the public hearing, which will be held on February 28, 2012 at the 6:00 PM City Council Meeting. City of Brookings January 24, 2012 60 Resolution No. 13-12 Resolution Fixing Time and Place for Hearing Upon Assessment Roll for Sidewalk Assessment Project No. 2011-01SWR (2011 Sidewalk Repair Sites) Be It Resolved by the City Council of the City of Brookings, South Dakota, as follows: 1. The assessment roll for Sidewalk Assessment Project No. 2011-01SWR having been filed in the office of the City Clerk on the 20th day of January, 2012, the City Council shall meet in the Council Chambers, City Hall, in said City on Tuesday, the 28th day of February, 2012, at 6:00 o'clock PM, the said date being not less than twenty (20) days from the filing of said assessment roll for hearing thereon. 2. The City Engineer is authorized and directed to prepare a notice describing, in general terms Sidewalk Assessment Project No. 2011-01SWR, the date of filing the assessment roll, the time and place of hearing thereon, stating that the assessment roll will be open for public inspection at the office of the City Engineer and referring to the assessment roll for further particulars. 3. The City Clerk is authorized and directed to publish said notice in the official newspaper at least one (1) week prior to the date set for hearing and to mail a copy thereof, by first class mail addressed to the owner or owners of any property to be assessed at his, her or their last mailing address as shown by the records of the Director of Equalization at least one (1) week prior to the date set for said hearing. Passed and approved this 24th day of January 2012. CITY OF BROOKINGS ____________________________ Tim Reed, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk City of Brookings January 24, 2012 61 CONSENT AGENDA #4 D. Action on Resolution No. 14-12, a Resolution authorizing Change Order No. 2 (CCO#2 Final) for 2011-02BLD City of Brookings Garage Project, Clark Drew Construction. This project entails work for the general construction of a new 73’ x 26’ vehicle storage garage at the new City-County Governmental site. The garage is located on the City lot on the south side of Front Street between 5th Avenue and 6 th Avenue, which is the previous substation site. The new garage will house vehicles from the Motor Pool, Engineering and Community Development departments. This project was bid as a lump sum project and the project includes earthwork, cast in place concrete, masonry, rough carpentry, gypsum board, thermal insulation, overhead metal doors, asphalt shingles, floor drains, and electrical work. This project has been completed and the contract is ready to be closed out. Even though there have been no additional changes to the contract price since Change Order No. 1, a final change order is required by our auditors to signify the project is complete. The contract which is summarized as follows: Original Contract Price: $102,500.00 Increase from Previously Approved Change Orders (No. 1): $588.53 Contract Price Prior to this Change Order: $103,088.53 Increase of this Change Order (No. 2 Final): $0.00 Contract Price incorporating this Change Order: $103,088.53 This resolution will approve Change Order No. 2 (CCO #2 Final) for no change to the contract price to close out the project. Resolution No. 14–12 Resolution Authorizing Change Order No. 2 (CCO#2 Final) for 2011-02BLD City of Brookings Garage Project Clark Drew Construction Be it Resolved by the City Council that the following change order be allowed for 2011-02BLD City of Brookings Garage Project: Construction Change Order Number 2 Final Close out the project with no change to the current contract price. Passed and approved this 24th day of January 2012. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings January 24, 2012 62 CONSENT AGENDA #4 E. Action on Resolution No. 15-12, a Resolution authorizing Change Order No. 1 (CCO#1 Final) for 2011-06STI Chip Seal Project, Bituminous Paving, Inc. This project is the chip seal project for the 2011 Project Area, which is located between 8th Street South and 20th Street South and between Medary Avenue and 22nd Avenue. This is an annual project, where the contractor places applies oil and city-furnished pea rock chips to the streets. The City then sweeps up the excess chips a few days afterward. This project is complete and is ready to be closed out. The final project cost was $136,426.42, which was a decrease of $60,898.58 to the contract due to chip sealing fewer streets than anticipated, and spending more on overlays and street patching. The summary is as follows: Original Contract Price: $197,325.00 Change from Previously Approved Change Orders: $0.00 Contract Price Prior to this Change Order: $197,325.00 Decrease of this Change Order (No. 1 Final): $60,898.58 Contract Price incorporating this Change Order: $136,426.42 This resolution will approve Change Order No. 1 (CCO #1 Final) for a decrease of $60,898.58 to the contract amount and to close out the project. The project was completed by the completion date and no adjustment to the contract time is needed. Resolution No. 15-12 A Resolution Authorizing Change Order No. 1 (CCO#1 Final) for 2011-06STI Chip Seal Project Bituminous Paving, Inc. Be It Resolved by the City Council that the following change order be allowed for 2011-06STI Chip Seal Project: - Construction Change Order Number 1 Final - Adjust bid quantities to final as-built quantities for a decrease of $60,898.58 to close out the project. Passed and approved this 24th day of January, 2012. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings January 24, 2012 63 CONSENT AGENDA #4 F. Action on Resolution No. 16-12, Federal Aid Surface Transportation Program Resolution for County and Urban Projects. The South Dakota Department of Transportation (SDDOT) is currently programming their projects for the Statewide Transportation Improvement Plan (STIP) for Federal Fiscal Years 2013-2017. The SDDOT allocates funding for urban systems projects using 81.95% federal funds and 18.05% state funds. SDDOT requires each city to submit a resolution outlining the projects for the next 5-years based on our best estimate of future needs. The current Statewide Transportation Improvement Plan (STIP) for Brookings has several projects listed on the attached resolution. These streets are eligible for DOT funding for the projects provided there is sufficient fund balance. The fund balance is a condition of the amount of federal funds allocated to Brookings and the cost of the project bids. If the fund balance is not sufficient to cover all of the projects listed, it is possible a project bid letting would be delayed until there is sufficient fund balance. This resolution will authorize the projects to be placed on the Statewide Transportation Improvement Plan for future improvements. City of Brookings January 24, 2012 64 Resolution No. 16-12 Federal Aid Surface Transportation Program Resolution for County and Urban Projects Whereas, the City of Brookings has desires the construction and improvement of the road and/or bridge as hereinafter described including revised costs due to additional scope for curb ramps and local material pricing: Year Project Location Type of Work Length Cost 2013 12th St. S. from Main Av. S. Milling & Asphalt Overlay .02 $1,000,000 to 22nd Ave. S. & Pavement Markings 2013 Intersection of 12th St.S. New Traffic Signal & .02 $180,000 and 17th Ave. S. Pavement Markings 2013 Intersection of Main Av. S New Traffic Signal & .02 $180,000 and 20th St. S. Pavement Markings 2013 Medary Ave. from Milling & Asphalt Overlay 0.8 $400,000 N. Campus Dr to NCL & Pavement Markings 2014 Sunrise Ridge Rd. from 6th Milling & Asphalt Overlay .63 $350,000 St. to Eastbrook Dr. & Pavement Markings 2014 17th Ave. S. from 6th St. Milling & Asphalt Overlay 1.0 $375,000 to 8th St. S. & Pavement Markings 2014 Eastbrook Dr. from Milling & Asphalt Overlay .33 $230,000 Sunrise Ridge Rd. to & Pavement Markings 22nd Ave. S. 2015 Main Ave. S. from 1st St. S. Milling & Asphalt Overlay .34 $200,000 to 4th St. S & Pavement Markings 2017 Main Ave. S. 8th St. S. Milling & Asphalt Overlay 1.0 $650,000 to 20th St. S & Pavement Markings Whereas, the City of Brookings is obligated and hereby agrees to provide proper maintenance as required by the Federal Highway Act as amended and supplemented thereto for the project after construction is completed and to regulate or cause to be regulated the installation of utility facilities within the limits of the right of way of the proposed project in accordance with State and Federal requirements. Whereas, the City of Brookings is obligated and hereby agrees to reimburse the State for all costs not reimbursable with Surface Transportation Program (STP) Funds and associated State matching funds. City of Brookings January 24, 2012 65 Whereas, the City of Brookings will utilize STP funds for 100% of the project. Now, Therefore Be It Resolved that the South Dakota Department of Transportation be and hereby is authorized and requested to program for construction, in accordance with the “Secondary Road Plan” and the State’s “Standard Specifications for Roads and Bridges,” the project described. Vote of the City Council: Yes ______ No______ Dated at Brookings, SD, this 24th day of January, 2012. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: City Clerk (SEAL) City of Brookings January 24, 2012 66 CONSENT AGENDA #4 G. Action on Resolution No. 17-12, a Resolution authorizing the City Manager of the City of Brookings, South Dakota to sign the Cooperative Fire Agreement with the State of South Dakota. TO: City Manager Jeff Weldon FROM: Fire Chief Darrell Hartmann RE: Cooperative Fire Agreement I am requesting the City of Brookings to authorize the signing of both copies of the Cooperative Fire Agreement with the South Dakota Department of Agriculture, Division of Wildland Fire Suppression. This contract is utilized to activate the City of Brookings Fire Department for deployment on wildland fires typically in the western part of the state. This is a standard contract which has been utilized for a number of years. There is one change as it applies to the City; the reimbursement rates were based on an hourly rate combination of use of the apparatus and the required personnel to operate it. The new contract has separated the two segments. The City will be reimbursed for the apparatus at a set rate, and personnel will be paid at a set rate, depending on their qualifications. The following is a summary of the process in which the events occur, which will not change. The Fire Department is activated to respond to an incident. At the conclusion of the event, the Fire Department submits a bill to the State of South Dakota, which is then paid directly to the City of Brookings. The Brookings Fire Department bills the City of Brookings for personnel costs and distributes the amount to the firefighters whom worked the fire. The Brookings Fire Department completes an IRS 10-99 form for each individual being paid with those funds. City of Brookings January 24, 2012 67 Resolution No. 17-12 Resolution authorizing the City Manager of the City of Brookings, South Dakota to sign the Cooperative Fire Agreement with the State of South Dakota. Be It Resolved by the City Council of the City of Brookings, South Dakota (the “City”), as follows: The City Manager of the City of Brookings is hereby authorized to sign the Cooperative Fire Agreement between the State of South Dakota, by and through the South Dakota Department of Agriculture, Division of Wildland Fire Suppression, and the City of Brookings, South Dakota, and This Resolution shall constitute Proof of Authority of the City Manager of the City Brookings to sign the above-described Agreement on behalf of the City of Brookings, South Dakota. Passed and approved this 24th day of January, 2012. City of Brookings, SD Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings January 24, 2012 90 CONSENT AGENDA #4 H. Action on Resolution No. 28-12, a Resolution Authorizing the Mayor to Sign Documents for P-3301(10) PCN 01D6, Medary Avenue from 6th Street to 15th Street South, Brookings, SD. The South Dakota Department of Transportation has programmed the street project P3301(10) PCN 01D6, which is Medary Avenue from 6th Street to 15th Street South. This project is being designed by the City Engineering staff and will include milling the top 2” of the asphalt surface and paving with a 2” asphalt overlay including striping. The project will also include upgrading each intersection with new ADA compliant curb ramps, and several of the ramp locations have required temporary construction easements to slope and seed the topsoil to the new ramp elevations. The funding for this project is being provided through the South Dakota Department of Transportation (SDDOT) through the Urban Surface Transportation Program. The SDDOT staff performs the plan review, bid letting and inspection for the project. Since this is a federal aid project, the process is lengthier from design to construction. It is anticipated the project will be let for bids in April or May of 2012, although SDDOT will stipulate when the bid letting will occur. If there are issues with the paperwork or approvals, the bid letting could be delayed. At the time of this memo, the City has not received some of the certificates from the DOT, however, this resolution will authorize the Mayor to sign the documents once they are issued for P3301(10) PCN 01D6, Medary Avenue from 6th Street to 15th Street South in Brookings, South Dakota. City of Brookings January 24, 2012 91 Resolution No. 28-12 A Resolution Authorizing the Mayor to Sign Documents for P3301(10) PCN 01D6; Medary Avenue from 6th Street to 15th Street South, Brookings, SD Whereas, the Brookings City Council desires the construction of Project P3301(10) PCN 01D6, Medary Avenue from 6th Street to 15th Street South in Brookings, SD; Whereas, the City of Brookings is obligated and hereby agrees to provide proper maintenance as required for the project after construction is completed in accordance with State and Federal requirements; Whereas, the City of Brookings certifies that all work involved in the project will take place within the City’s right-of-way and easements, and that no additional right-of-way is required. Now, Therefore, Be It Resolved that the Mayor of the City of Brookings is authorized to sign the Right-of-Way Certificate, Utility Certificate, Bid Letting Authorization, and Agreements for Voluntary Right of Way Donations and Right of Way Agreements for Project P3301(10) PCN 01D6 for Medary Avenue from 6th Street to 15th Street South, Brookings, SD Dated this 24th day of January, 2012. CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk City of Brookings January 24, 2012 92 CONSENT AGENDA #4 I. Action to cancel the March 13, 2012 City Council Meeting. The City Council meeting scheduled for March 13, 2012 is being cancelled due to several council members attending the National League of Cities Conference. State Law requires official Council action to schedule or cancel a meeting. City of Brookings January 24, 2012 93 CONSENT AGENDA #4 J. Action on Resolution No. 18-12, a Resolution authorizing the Mayor to Sign Documents for P-PH 0014(172)418 PCN 01TJ, US Highway 14 Project, Brookings, SD. The South Dakota Department of Transportation (SDDOT) has been designing the 6th Street reconstruction project between Highway 14 Diagonal and Main Avenue, which is scheduled for construction in 2013. City staff has been involved in a number of design meetings with SDDOT to coordinate issues with the project. The design of 6th Street will be slightly wider than the existing roadway to accommodate wide outside lanes for shared vehicle and bicycle use. The widening has caused the SDDOT to require the purchase of approximately 0.41 acres (18,036 square feet more or less) of additional property along Pioneer Park to be used for right-of- way. The SDDOT also has requested a temporary construction easement along the City’s property at Pioneer Park to be able to backfill and slope topsoil to the new sidewalk elevation. The SDDOT proposes the compensation amount of $1.00 for the purchase of property and the temporary easement. It is important to note that the SDDOT accommodated the City’s request to allow the stone signs for Pioneer Park to remain in place. This resolution will authorize the Mayor to sign the Offer and Statement of Compensation, Right of Way Agreement, Warranty Deed and Temporary Easement Agreement for this project. City of Brookings January 24, 2012 94 Resolution No. 18-12 A Resolution Authorizing the Mayor to Sign Documents for P-PH 0014(172)418 PCN 01TJ US Highway 14 Project, Brookings, SD Whereas, the Brookings City Council desires the construction improvement of 6th Street from Main Avenue to Highway 14 Diagonal, approximately 500 feet west of Western Avenue in Brookings, SD; Whereas, the State of South Dakota is acquiring the following property from the City of Brookings: Lot H1 in the South 40 Rods of the North 42 Rods of the W ½ NW ¼ of Section 26, Township 110 North, Range 50 West of the 5th P.M., Brookings County, South Dakota, which is 0.41 acres (18,036 sq. ft.) more or less; Whereas, the State of South Dakota is acquiring a temporary easement from the City of Brookings in the South 40 rods of the North 42 rods of the W ½ NW ¼ of Section 26, Township 110 North, Range 50 West of the 5th P.M., Brookings County, South Dakota and in the N ½ NE ¼ of Section 27, Township 110 North, Range 50 West of the 5th P.M., Brookings South Dakota; Whereas, the State of South Dakota is compensating the City of Brookings for the amount of $1.00 for the property purchase and temporary easement. Now, Therefore Be It Resolved that the Mayor of the City of Brookings is authorized to sign the Offer and Statement of Compensation, Right of Way Agreement, Warranty Deed and Temporary Easement Agreement, and other related documents for Project P-PH 0014(172)418 PCN 01TJ, US Highway 14 Project, Brookings, SD Dated this 24th day of January, 2012. CITY OF BROOKINGS _________________________ Tim Reed, Mayor ATTEST: ____________________________ Shari Thornes, City Clerk City of Brookings January 24, 2012 105 CONSENT AGENDA #4 K. Action on Resolution No. 19-12, a Resolution authorizing Change Order No. 1 for 2011-01 Gateway Project, Clark Drew, Inc. The general contractor, Clark Drew Construction, Inc., has submitted a change order addressing items related to the first phase of the Gateway Project. The change order is a deduct of $18,830.00 from the original contract, primarily related to delaying the installation of the ‘Welcome to Brookings’ sign at Pioneer Park and electrical revisions. The SDDOT is planning to reconstruct 6th Street along Pioneer Park in 2013. Due to the extensive storm sewer infrastructure work to be performed in conjunction with this project, it would be in the best interests of the City to delay the sign installation until the storm sewer and associated grading be completed. A separate contract will be initiated addressing the installation of this sign. The materials for this sign have been purchased as part of the original contract and will be stored at the contractor’s storage site. The change order will remove the sign installation costs from this project. The original completion date of June 30, 2012 will remain intact for the rest of the 2011-01 Gateway Project. Original Contract Price: $588,100.00 Change Order CCO #1 Amount (Decrease): ($18,830.00) Final Contract Price: $569,270.00 Resolution No. 19-12 Resolution Authorizing Change Order No. 1 for 2011-01 Gateway Project; Clark Drew Construction, Inc. Be It Resolved by the City Council that the following change order be allowed for 2011-01 Gateway Project: Construction Change Order Number 1 Adjust the contract price for a decrease of $18,830.00 to the contract. Passed and approved this 24th day of January, 2012. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor ____________________________ Shari Thornes, City Clerk City of Brookings January 24, 2012 106 CONSENT AGENDA #4 L. Action on an Abatement request from Brookings Health Systems to abate a portion of the 2011 taxes in the amount of $8,481.10 for part of Lot 1, Block 4, Mayland’s First Addition, also known as 100 22nd Avenue. Brookings Health Systems has submitted a request to abate a portion of the 2011 property taxes on the above referenced property in the amount of $8,481.10. A copy of the application is enclosed. The County Director of Equalization recommends approval. City of Brookings January 24, 2012 112 CONSENT AGENDA #4 M. Action on an abatement request from Brookings Health Systems to abate a portion of 2011 taxes in the amount of $844.56 for Block 8, Mayland’s First Addition, Bare Land. Brookings Health Systems has submitted a request to abate a portion of the 2011 property taxes on the above referenced property in the amount of $844.56. A copy of the application is enclosed. The County Director of Equalization recommends approval. City of Brookings January 24, 2012 118 CONSENT AGENDA #4 N. Action on an appointment to the Board of Adjustment. Mayor Reed has submitted the following appointment recommendation for Council consideration: Board of Adjustment Number of positions: 1 (2nd Alternate) Position currently held by: vacant Term Length: 3 years Residency Requirement: Required or reside within the Joint Jurisdictional Area Purpose: The Board of Adjustment has the authority to act on variances or special exceptions to the zoning ordinance. Four of the five members must vote in the affirmative for a motion to pass. Mayor’s Appointment Recommendation 1. Seth Hansen City of Brookings January 24, 2012 119 CONSENT AGENDA #4 O. Action on Resolution No. 27–12, a Resolution authorizing Change Order No. 2 (CCO#2 Final) for 2011-03BLD Airport Building Addition Project, Clark Drew Construction. The 2011-03BLD Airport Building Addition Project with Clark Drew Construction entails work for the general construction of a 30’ x 46’ addition to the west side of the City of Brookings Airport Rescue & Fire Fighting building located at 509 West 2nd Street South. This project was bid as a lump sum project and involves earthwork, cast in place concrete, rough carpentry, overhead metal doors, asphalt shingles, siding, floor drains, and electrical work. The new garage bay will house the airport snow removal equipment, which is currently being stored in the Airport’s storage shed located outside of airport property on the north side of 2nd Street South. This project has been completed and the contract is ready to be closed out. Even though there have been no additional changes to the contract price since Change Order No. 1, a final change order is required by our auditors to signify the project is complete. The contract which is summarized as follows: Original Contract Price: $93,000.00 Decrease of from Previously Approved Change Orders (No. 1): $4,423.00 Contract Price Prior to this Change Order: $88,577.00 Increase of this Change Order (No. 2 Final): $0.00 Contract Price incorporating this Change Order: $88,577.00 This resolution will approve Change Order No. 2 (CCO #2 Final) for no change to the contract price to close out the project. Resolution No. 27–12 Resolution Authorizing Change Order No. 2 (CCO#2 Final) for 2011-03BLD Airport Building Addition Project Clark Drew Construction Be it Resolved by the City Council that the following change order be allowed for 2011-03BLD Airport Building Addition Project: Construction Change Order Number 2 Final Close out the project with no change to the current contract price. Passed and approved this 24th day of January 2012. CITY OF BROOKINGS ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings January 24, 2012 120 5. Items removed from Consent Agenda. Matters appearing on the Consent Agenda are expected to be non- controversial and will be acted upon by the Council at one time, without discussion, unless a member of the Council or City Manager requests an opportunity to address any given item. Items removed from the Consent Agenda will be discussed at the beginning of the formal items. Approval by the Council of the Consent Agenda items means that the recommendation of the City Manager is approved along with the terms and conditions described in the agenda supporting documentation. City of Brookings January 24, 2012 121 Presentations 6. Presentation of Annual Dr. Martin Luther King, Jr. Day Awards. In celebration of Dr. King’s birthday, the Brookings Human Rights Committee sponsored a poster contest for elementary students and an essay contest for middle school and high school grades to help students reflect on Dr. King’s ideas and their impact on the community. This year’s theme for the poster contest was “Living Together as Brothers” and the theme for the essay contest was “Significance of the MLK Memorial in Washington.” Mayor Tim Reed will present the winners with cash awards at the City Council meeting on Tuesday, January 24, 2012, at 6:00 p.m. All poster entries and the winning essays will be on display at the Swiftel Center and on the city website (www.cityofbrookings.org) through January 31st. Grades K-1 - Poster Hope Zink – 1st Place - $25.00 Hillcrest Elementary – 1st Grade Teacher – Mrs. Broksieck Parents – Scott and Gina Zink Ivy Gunn – 2nd Place - $10.00 Medary Elementary – 1st Grade Teacher – Mrs. Neuman Parents – Todd and Miyuki Gunn Alivia Smart – Honorable Mention Medary Elementary – 1st Grade Teacher – Mrs. Neuman Parents – Alexander & Diane Smart Matthew Simmons – Honorable Mention Medary Elementary – 1st Grade Teacher – Mrs. Neuman Parents – Matthew & Melissa Simmons Grades 2-3 - Poster Trinity Kindt – 1st Place - $25.00 Hillcrest Elementary – 3rd Grade Teacher – Mr. Diercks Parents – Cory and Melanie Kindt Jocelyn Zerr – 2nd Place - $10.00 Hillcrest Elementary – 2nd Grade Teacher – Ms. Ballis City of Brookings January 24, 2012 122 Parents – Brian and Cody Zerr Nathan Cole-Dai – Honorable Mention Hillcrest Elementary – 3rd Grade Teacher – Mrs. LeFebvre Parents – JiHong and Phyllis Cole-Dai Grades 4-5 - Poster Maci Law – 1st Place (tie) - $25.00 Camelot Intermediate School – 5th Grade Teacher – Ms. Miles Parents – Dave and Carrie Law Jadyn Perry – 1st Place (tie) - $25.00 Camelot Intermediate School – 5th Grade Teacher – Ms. Hofer Parents – Bryan and Diane Perry Kaden Vugteveen – Honorable Mention Camelot Intermediate School – 5th Grade Teacher – Ms. Miles Parents – Paul and Allison Vugteveen Middle School – Essay Kashfia Rahman – 1st Place - $100.00 Mickelson Middle School – 6th Grade Teacher – Mrs. Meyer Parents – Shafiqur and Moursheda Rahman Rachel Smart – 2nd Place - $50.00 Mickelson Middle School – 6th Grade Teacher – Mrs. Moore Parents – Alexander & Diane Smart Jeanna Feldhus – Honorable Mention Mickelson Middle School – 8th Grade Teacher – Mr. Ruane Parents – Kenneth & Holly Feldhus High School – Essay Zarin Rahman – 1st Place - $100.00 High School – 10th Grade Teacher – Mrs. Ekeland Parents – Shafiqur and Moursheda Rahman City of Brookings January 24, 2012 133 Kashfia Rahman, 6th Grade Mickelson Middle School Essay – 1st Place Teacher – Mrs. Meyer Parents – Shafiqur and Moursheda Rahman A Dream Came True We can all remember a great leader through books and historical documents, but a memorial is more than those things. A memorial resembles, symbolizes, and honors the memory of a person. It makes the person come alive and also helps people visualize what that person was like and what legacy they left behind. The Martin Luther King Jr. National Memorial is built to honor and preserve the memory of the legendary person, Dr. Martin Luther King Jr., who fought for human rights and justice. It is the first major memorial on the National Mall in Washington D.C. dedicated to an African-American, and to a non-president. The memorial is important, because it reminds us of his actions and sacrifices that have made a difference to this day, and also reminds us of what Dr. King has left for our world. Dr. Martin Luther King, Jr. is one of history's most influential and significant individuals. He believed in fairness and equality for all. When Dr. King thought that blacks were being racially discriminated, he felt he should take a stand to end this segregation. But in order to achieve success, he knew he would have to fight in a non-violent way or peacefully. During the period from 1950s to 1960s, he marched thousands of miles and made many courageous speeches to make his point clear and spread his messages throughout America. His well-known "I Have a Dream" speech helped all people work peacefully to win equal rights. Without the movement, he and his next generation might still be riding on the back of the bus, still be segregated, and still be deprived of their right to vote. King’s quotes have inspired millions of people to look for justice and equality, even decades after his death in 1968. Dr. King has become a symbol of protest in the struggles for racial justice. The Martin Luther King Jr. Memorial signifies and strengthens his message that without basic rights, nothing else can be done, because every justice comes from this solid foundation. The Martin Luther King Jr. Memorial opened to the public on August 22, 2011. On the National Mall in Washington, D.C., the 30-foot-tall statue of Dr. King is standing high with his spiritual message, the future hope for humanity and justice. It is built from a block of granite, and is laid in between the Jefferson and Lincoln Memorials. This is the site where Dr. King delivered his most famous “I Have a Dream” speech 48 years ago. The statue is called “The Stone of Hope” and it comes out from two huge stones called "Mountain of Despair". Both “The Stone of Hope” and “The Mountain of Despair” are taken from a phrase King used at the Lincoln Memorial during his famous speech in 1963. The two quotes written on ‘The Stone of Hope’, "Out of the mountain of despair, a stone of hope", and "I was a drum major for justice, peace and righteousness,” have strong significance. The first one represents his hope for ending the discrimination through mountain of struggles and barriers. The second one portrays his belief in justice, peace and righteousness. There is also a 450-foot inscription wall, made from granite panels, decorated with 14 famous quotes of King which serve the legacy of what he dreamed for America and what we should do to fulfill his dream. City of Brookings January 24, 2012 134 The memorial will help keep King’s message strong, clear, and alive, because it is still true today. We have to realize that issues with rights and justice are still happening in America and the other parts of the world. Around the world, people still experience the same difficulties as the black people did during the 50’s and 60’s. The treatment of children’s and women’s rights, voting rights, prisoners’ rights, religious rights, and other human rights are still violated. The world will be a better place to live in if everyone has equal rights and these rights are not denied. For this, we have to follow his dream and stand against injustice and discrimination. The Martin Luther King Memorial is not just a statue; it is a reminder and wake up call for everyone to keep his dream alive, to carry out his dream, to take his message, and to spread it to the other parts of the world. It’s a motivation for us and also for the next generation to stand up to world peace through justice for all. City of Brookings January 24, 2012 135 Rachel Smart, 6th Grade Mickelson Middle School Essay – 2nd Place Teacher – Mrs. Moore Parents – Alexander & Diane Smart How the World Was Meant to Be On August 28, 1963 Martin Luther King gave his famous “I Have a Dream” speech. Thirty-eight years later we still remember this incredible man. Why? It all depends upon what you believe. Are blacks really the same as whites? That was the major question back then. A common person couldn’t look anywhere without seeing even just a glimpse of discrimination. Hatred, violence, prejudice was everywhere. Black and white, colors like crayons in a box. How had we come to this? Signs on doors read whites only. Was the world this blind? We were all wrapped up in some misty illusion unable to see the truth-even if we thought we already had. The fairness we thought we lived in as Americans wasn’t really there. We weren’t treating each other equal! In fact we were far from it! Yet on and on we kept going, blind as bats. Then justice came. It came in the form of Martin Luther King Jr. It screamed at us and yelled, “What are you doing?!?”, but we wouldn’t listen. It screamed, “Don’t you see this is wrong?”, and we ignored it. We refused to see the truth, so we fought it. We locked it up and kept it far from us like a disease. We tried to wipe it from existence. Every time we did something more violent, but every time it came back, because justice doesn’t go down without a fight-never. Justice fought us much stronger than we’d ever imagined. Martin Luther King wouldn’t ever give in. Millions of voices echoed in our minds from the marches and speeches he lead. The words were strong, urgent, and never giving in. They cried out with the misery and the pain, the words we fought hard to keep out of our heads. Then one day we somehow let our guard down. White flags of surrender came into our minds, and it all came flooding in. With shock we realized what we’d become, ruthless, killing monsters devouring the souls of the weak and the weary. Shame flooded our souls and pain came like never before. This was the pain of truth. Even today we feel this way. It wasn’t our fault, yet it was we who caused such suffering. We did none of it, but we still felt the weight. Thank goodness the world is forgiving sometimes. Thank goodness people can change. Today we all live in together just the way Martin Luther King wanted it. Little black boys and girls play with little white children. In time we realized this was how the world was meant to be. We are all made to be equal and live as one country. We are all made to unite. To be one nation under God, and Martin Luther King’s memorial reminds us of this. When we look at it we are reminded of the man who believed in the impossible. We are reminded of the things we forget, because the world can be forgetful. We are reminded that everyone is really the same from the inside. That it doesn’t matter what you look like, if you are black or white. It never matters if you are a man or a woman. Everyone is a person, and everyone deserves to live a good life. This is why we need Martin Luther King Junior’s memorial, because when we look at it we remember how the world was meant to be. Who would want to forget that? City of Brookings January 24, 2012 136 Jeanna Feldhus, 8th Grade Mickelson Middle School Essay – Honorable Mention Teacher – Mr. Ruane Parents – Kenneth and Holly Feldhus Martin Luther King Jr. “I have a dream that one day every valley shall be exalted, every hill and mountain shall be made low, the rough places will be made plain, and the crooked places will be made straight, “and the glory of the Lord shall be revealed and all flesh shall see it together.” Martin Luther King Jr. is my inspiration, not only because he did what is right, but because he knew he was going to die and he kept on doing what he knew was worth dying for. He also proved he was loyal to all colored by protesting with them. When people think about Martin Luther King Jr., they think about the “I Have a Dream” speech, but when I think about him, I think about what world would be without him. The world would be terrible because I wouldn’t be friends with at least half of my friend that are my friends right now. I believe that without Martin Luther King Jr., my family would not exist, because I have a few cousins that are colored, but I really don’t care about their color, instead I care about their heart, feelings and individuality. On August 28, 1963 Martin Luther King Jr. had given his speech in front of millions that supported him. If he had, had stage fright he would still fight for what’s right. I believe that he was the most important figure to all colored, but hey, I’m not colored and he’s still my hero. I believe in him like he was my father and he was telling me stories about when he was young. He is the best guy I have never known. I wish that I could have met him, because he is my hero. He used powerful, but non-violent protest. I think of him, every time I need to do something. I am entirely happy that he has made us equals. Otherwise, I may not have many friends. I wish that I would have had the guts to do what he did. In conclusion, I am extremely overwhelmed when our teacher told us about this paragraph because I want people to read this and think that they could also change the world, and I hope we all believe in ourselves. I am hoping that someone reads this and it inspires them to write. City of Brookings January 24, 2012 137 Zarin Rahman, 10th Grade High School Essay – 1st Place Teacher – Mrs. Ekelund Parents – Shafiqur and Moursheda Rahman "Out of the Mountain of Despair, a Stone of Hope" “In this place, he [Martin Luther King, Jr.] will stand for all time, among monuments to those who fathered this nation and those who defended it; a black preacher with no official rank or title who somehow gave voice to our deepest dreams and our most lasting ideals, a man who stirred our conscience and thereby helped make our union more perfect.” -Barack Obama. On August 22, 2011, in the United States of America, a long cherished dream came true; an American hero became an American legend. The glorious and unforgettable history of Dr. Martin Luther King, Jr. was repeated, remembered, and memorialized in stone for the entire world to behold. A 30-foot statue of the Civil Rights martyr was sculpted in granite and placed on the National Mall in Washington, D.C. The significance of this sculpture stretches far beyond the smooth edges of this stone memorial. It encompasses the lives of African- Americans of the past, of the present and of the future, and captures the essence of everything he and the Civil Rights Movement of the 1960’s stood for. It’s the first memorial on the National Mall to honor a man of peace, and a man of color. It represents the history of those who were discriminated, killed and looked down upon because of their skin color, religion and or their ethnicity. The Martin Luther King Jr. National Memorial conveys three themes that were central throughout Dr. King’s life - democracy, justice, and hope. It tells us the history of King’s career - from the Montgomery bus boycotts in Alabama in 1955 to the last sermon at the National Cathedral in Washington D. C., just four days before his assassination in 1968. Dr. King became the face and voice of the civil rights movement in this country; he challenged America’s conscience by bringing light to the violent oppression of African Americans; he implemented the principles of non-violence and civil disobedience, gathered from India’s Mohatma Gandhi, for his own revolutionary U.S. movement; he ultimately sacrificed his life to fulfill his dream, an America without discrimination. His dream lives on at the MLK Memorial in Washington. The location itself of the MLK memorial helps emphasize its importance. Located on axis with the Jefferson and Lincoln memorials and just feet away from the place where Dr. King delivered his renowned “I Have a Dream” speech forty-eight years ago, the memorial stands for the future hope for humanity, “for justice, peace and righteousness." The statue faces southeast to the Jefferson Memorial where that president’s words about the equality of men are engraved. The Lincoln Memorial with its legacy of the great emancipation and of major civil rights’ events is standing behind it. This entire plan strengthens the relationship between Dr. King, Jefferson and Lincoln and the evolving message of democracy, from the Declaration of Independence to the Gettysburg Address to Dr. King's Civil Rights Speech delivered in 1963. The memorial’s address, 1964 Independence Ave., also has strong connotation that refers to the Civil Rights Act of 1964. City of Brookings January 24, 2012 138 The concept of the design for the memorial is deeply rooted in a line from Dr. King’s famous “I Have a Dream” speech: "Out of the mountain of despair, a stone of hope.” The likeness of Dr. King is carved into the “Stone of Hope” emerging impressively from two large rocks, which represent the “Mountain of Despair”. The symbolic meaning behind that is to give the visitors the experience of going through struggles that Dr. King faced during his life, while they enter through the “Mountain of Despair” and then be released into the open freedom, his hope for humanity. On the visible side of the stone, the theme of hope is presented through the quote: "Out of the mountain of despair, a stone of hope.” The quote on the other side reads: "I was a drum major for justice, peace and righteousness,” a proclamation left by Dr. King describing how he would like to be remembered. There is also a 450-foot long, crescent-shaped granite inscription wall containing fourteen of Dr. King’s most notable quotes on justice, democracy, hope and love to portray living proofs of his vision of America. Hence, this is more than a stone sculptor; it is a statement, a moral statement of justice, equality and hope. These works of art will continue to signify the importance of equality and forever encourage all people to strive for justice and peace. The memorial does not only honor a man of extreme principles, but the movement of freedom that mobilized around him, and the many lives, Black, White, Hispanic, Asian, that he touched. America has moved a great distance from its shameful past of slavery, and officially sanctioned policies of segregation. But the long march towards the ideals did not end with Dr. King's speech. The quest for justice, better race relation, religious tolerance, social justice, education, and economic equality continues as there are people who still promote inequality and prejudice, and judge people based on stereotypes. “Silence is not an option.” “Injustice anywhere is a threat to justice everywhere”. The King Memorial will have transitory meaning if most of us stay away and continue to ignore the injustice, prejudice, discrimination, and inequality that occur in a daily basis in many aspects of contemporary society. Most recently, The Occupy Movement against the structural inequalities and California state Senator Ted Lieu’s leading protest against Lowe’s bigotry against a major religious group and many other protests in our daily life would not have been happened without the teaching of Dr. King. The goals he set have not been reached, but we have a memorial that allows us to defend his message, so that we don't forget to pick up where he left off in trying to make the world prejudice free. Martin Luther King Memorial will forever serve as testaments of his ideas and dreams for which Dr. King stood and fought and sacrificed his life for. His memorial stands here for teaching and practicing the principles of his life. Following his dream, we can do it anytime and anywhere; we can do it today, or tomorrow, or the next year or the next century. His statue will encourage and remind us to continue a movement from generation to generation when it is needed, when human rights are violated, and when humanity starts to disappear. As a symbol of change, it signifies that there's still hope out there to make the world peaceful. If Dr. King were alive today, I'm certain this is the message that he would deliver to the people around the world. We as a nation should hold his values up as high as his monument stands in Washington D. C. City of Brookings January 24, 2012 139 Open Forum 7. Invitation for a Citizen to schedule time on the Council Agenda for an issue not listed. At this time, any member of the public may request time on the agenda for an item not listed. Items are typically scheduled for the end of the meeting; however, very brief announcements or invitations will be allowed at this time. 8. SDSU Student Senate Report. President – Mark York Vice-President – Anthony Sutton Administrative Assistant – Brooke Reiner Finance Chair – Brian Gottlob State & Local Chair – Jameson Berreth SDSU Senate Website: http://www.wix.com/sdsu_sa/sa City of Brookings January 24, 2012 140 Contracts and Change Orders 9. Action on Resolution No. 20-12, a Resolution awarding bids for the Brookings Nature Park Phase I, Fisheries Improvements. The Dakota Nature Park is located on 22nd Ave. South on the site of the previous city landfill. This project entails the grading and surfacing of approximately 3,300 LF of hiking trails; construction of a canoe/kayak launch; pick-up, delivery, and installation of two floating fishing piers; grading and surfacing of two entrance roads and parking lots. Surfacing to be recycled concrete aggregate. This is the first of several phases under which the park will be developed. This first phase is funded through a matching Grant with the South Dakota Department of Game, Fish and Parks, with the City of Brookings providing a 25% match. The total funding available for this phase is $300,000.00, of which approximately $80,000.00 will be spent by the City to purchase two floating piers from the Springfield State Penitentiary. The remaining funds will provide for the work previously described and contingencies. The bid letting was held on January 5, 2012, with the following bids received: Company Bid Price Rounds Construction $180,000.00 Bowes Construction $182,000.00 Duininck Bros. Inc. $293,500.00 The engineering estimate for this project was $206,128.00 by Banner Associates, Inc. Banner Associates, Inc. and the Brookings Parks, Recreation and Forestry Department recommend awarding the contract to Rounds Construction, Inc. of Brookings, SD for the low bid of $180,000.00. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings January 24, 2012 141 Resolution No. 20-12 Resolution Awarding Bid for the Dakota Nature Park (formerly Brookings/SouthBrook Nature Park), Phase I Fisheries Improvements Whereas, the City of Brookings held a bid letting at 1:30 p.m. on Thursday, Jan. 5, 2012; and Whereas, the City of Brookings has received the following bid(s) for Dakota Nature Park (formerly Brookings/SouthBrook Nature Park), Phase I Fisheries Improvements: Company Bid Price Rounds Construction $180,000.00 Bowes Construction $182,000.00 Duininck Bros. Inc. $293,500.00 Now Therefore, Be it Resolved that the bid from Rounds Construction of Brookings in the amount of $180,000.00 be accepted. Passed and approved this 24th day of January, 2012. CITY OF BROOKINGS ________________________________ Tim Reed, Mayor ATTEST: _________________________ Shari Thornes, City Clerk City of Brookings January 24, 2012 142 First Readings** 10. Ordinance No. 01-12: An Ordinance amending the Zoning Ordinance pertaining to banners and temporary signs. Public Hearing: February 14, 2012 **No vote is taken on the first reading of an Ordinance. The title of the Ordinance is read and the date for the public hearing is announced. Proposal: Create specific regulations for temporary signs regarding their use during special events. Background: Recent court cases regarding First Amendment rights pertaining to the freedom of speech were the catalyst for these amendments. Courts have generally agreed that non-commercial speech is protected to a higher degree than commercial speech. Some courts have viewed that political speech should receive the highest protection within the realm of non commercial speech. Therefore, they have sided, in some cases, with municipalities that permit additional temporary signs to be erected before and after an election. They have allowed this even though there appears to be a loss of content neutrality which our sign ordinance is based upon. Specifics: Signs that are considered “temporary” in our ordinance are garage/yard sale, political, real estate, construction, portable, inflatable and pennant signs. Some require a permit and some are allowed for up to 6 months without a permit. The proposed changes are similar to regulations in other municipal ordinances that passed muster with the courts. The allowance of 6 to 8 signs per lot or parcel would provide citizens the opportunity to show their support for several candidates or causes without being too restrictive (courts have struck down ordinances that were too restrictive in the number of signs allowed). Recommendation: The Planning Commission voted 7 yes and 0 no to recommend that these zoning amendments be approved. City of Brookings January 24, 2012 143 NOTICE OF HEARING UPON A CHANGE IN ZONE REGULATIONS NOTICE IS HEREBY GIVEN That the City of Brookings has submitted amendments to Chapter 94, Zoning, pertaining to banner and temporary signs NOTICE IS FURTHER GIVEN That said request will be acted on by the City Planning Commission at 7:00 PM on Tuesday, January 3, 2012, in the Council Chamber in the lower level of City Hall, Brookings, South Dakota. Any action taken by the City Planning Commission is a recommendation to the City Council. Any person interested may appear and be heard in this matter. Dated this 23rd day of December, 2011. ____________________________ Dan Hanson Planning & Zoning Administrator City of Brookings January 24, 2012 144 Ordinance No. 01-12 An ordinance amending the zoning ordinance of the City of Brookings and pertaining to Temporary and Banner signs for the purposes of administration of the zoning ordinance Be it ordained by the Council of the City of Brookings, State of South Dakota: that Article VI. Supplemental Regulations of Chapter 94, Zoning shall be amended as follows: Division 5 - SIGNS Section 1. Section 94-461 Definitions Election: A special event where individuals campaign for a local, state, or national political office Special event: An occurrence or happening or a particular occasion that may be of community, state, or national interest such as an election, celebration, or city- sponsored event Section 2. Section 94-470 Regulations for all districts (g) Banner Signs. Banner signs shall be regulated as follows: 3. A banner sign shall not exceed 40 square feet in size. (h) Temporary Signs. 1.Generally a. No temporary sign shall be illuminated in any manner b. No temporary sign shall interfere with the required clear sight triangle at an intersection c. Temporary signs shall be kept in good repair. Faded, torn, damaged or otherwise unsightly signs shall be repaired or removed d. Temporary signs shall not be attached to trees, shrubs, or other organic matter e. No temporary sign shall exceed a total height of 6 feet f. A temporary sign may be posted for a period of up to 180 days in a calendar year at which time the sign shall be removed or replaced. Temporary signs erected solely for a special event/election shall be removed within 7 days of the expiration date of the event 2. Residential Districts a. The total square footage allowed for temporary signs on a residential lot shall not exceed 8 square feet with no individual sign exceeding 6 square feet and no more than 2 signs displayed at any one time. b. The total square footage allowed for temporary signs on a residential lot during a special event/election shall not exceed 24 square feet with City of Brookings January 24, 2012 145 no individual sign exceeding 6 square feet and no more than 6 signs displayed at any one time. 3. Business and Industrial Districts a. The total square footage allowed for temporary signs on a business or industrial lot shall not exceed 32 square feet with no individual sign exceeding 16 square feet and no more than 2 signs displayed at any one time. b. The total square footage allowed for temporary signs on a business or industrial lot during a special event/election shall not exceed 64 square feet with no individual sign exceeding 16 square feet and no more than 8 signs displayed at any one time. Section 3. Section 94-473 Tables TABLE 4 NUMBER AND DIMENSIONS OF CERTAIN SIGNS BY SIGN TYPE SIGN TYPE NUMBER ALLOWED MAXIMUM SIGN AREA (SF) VERTICAL CLEARANCE FROM SIDEWALK (Ft) HORIZONTAL CLEARANCE FROM CURB (Ft) MISCELLANEOUS Banner (c) 2 40 (each) 8 2 Banner, Pole 8 2 Flag 8 2 Inflatable (c) 1 100 Pennant (c) Portable (c) 1 32(d) Temporary (e) 2 16 a) Sign area for this sign shall be applied to the maximum allowable wall area from Table 3. b) One sign shall be permitted for each building face fronting a public street. c) Allowed as per section 94-470 (e, f, & g). d) Exception allowed as per section 94-470 (e, f, & g). e) See section 94-470(h). Section 4. Any or all ordinances in conflict herewith are hereby repealed. First Reading: January 24, 2012 Second Reading: February 14, 2012 Published: CITY OF BROOKINGS, SD Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings January 24, 2012 146 Planning Commission Brookings, South Dakota January 3, 2012 OFFICIAL MINUTES Chairperson Wayne Avery called the regular meeting of the City Planning Commission to order on January 3, 2012, at 7:00 PM in the Council Chamber at City Hall. Members present were Mike Cameron, Donna DeKraai, Greg Fargen, Alan Gregg, Al Heuton, John Sydow, and Avery. Hal Bailey and John Gustafson were absent. Also present were Richard Halstead, Mark York, City Engineer Jackie Lanning, Community Development Director Mike Struck, City Manager Jeff Weldon, Planning and Zoning Administrator Dan Hanson and others. Item #4 – The City of Brookings has submitted amendments to Chapter 94, Zoning, pertaining to banner and temporary signs. (DeKraai/Cameron) Motion to approve the amendments. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Item #4 – The amendments included two (2) definitions, new regulations for temporary signs, and a limit to the size of a banner sign. Recent case law indicated that certain non-commercial speech such as political signs or “for cause” signs should be regulated to a lesser degree than other non-commercial speech and certainly commercial speech. The amendments allow for the placement of additional temporary signs on private property only during a special event or election. Heuton asked if a garage or yard sale sign could be a special event. Hanson replied that the special event definition pertained more to a city wide type event and not a local residence. Fargen asked for clarification on the remove and replace language in the ordinance. Hanson remarked that this provision was added to allow real estate signs, in particular, to be replaced on a lot after the 180 day term was up. Fargen asked about restrictions on the location of temporary signs. Hanson responded that no signs are allowed in the public right-of-way. City of Brookings January 24, 2012 147 Alcohol Licenses 11. Action on Resolution No. 21-12, a Resolution establishing the fee for issuance of Operating Agreements in the City of Brookings (This Resolution would rescind Resolution No. 128-11, adopted on 10/25/11.) Enclosed Resolution No. 21-12 readjusts the fee for issuance of operating agreements from $100,000, set on October 25, 2011, to $25,000; pursuant to council direction from January 10, 2012. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings January 24, 2012 148 Resolution No. 21-12 Resolution Establishing the License Fee for the Issuance of Operating Agreements in the City of Brookings Be It Resolved by the City Council of the City of Brookings, South Dakota as follows: Whereas, SDCL 35-4-2(4) provides the minimum fee for the initial issuance of on-sale alcoholic beverage liquor licenses, and this statute is also applicable to municipalities under local option, and Whereas, State law requires a municipality to set the fee for the initial issuance of an Operating Agreement at not less than one dollar for each person residing within the municipality, as measured by the last preceding Federal Census, and the Federal Census having recently determined the population of Brookings to be 22,056, and Whereas, SDCL 35-4-2(4) does not establish a maximum fee for the issuance of Operating Agreements, and accordingly, the fee may be set by the City Council provided the fee equals or exceeds the minimum fee, Now, Therefore, Be It Resolved that the fee for the issuance of initial on-sale Operating Agreements is $25,000.00, which is payable at or prior to the execution of the Operating Agreement. Be It Further Resolved that the definition of an initial on-sale Operating Agreement includes the following: 1. Operating Agreements made available by increases in population which have never been issued; and 2. Operating Agreements made available by the termination of a previously issued Operating Agreement. Be It Further Resolved that transfers of an Operating Agreement from a current Manager to a proposed Manager, whether to be operated at the same location or at a new location, will not be subject to the fee for the initial issuance of an Operating Agreement because the Operating Agreement has been previously issued and has not been terminated. This Resolution rescinds Resolution No. 128-11, which previously set the issuance fee for Operating Agreements. Passed and approved on the 24th day of January, 2012. CITY OF BROOKINGS: Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings January 24, 2012 150 Alcohol Licenses 12. Action authorizing the City Manager to sign Operating Agreements for on-sale liquor at the following locations for a term of ten years with a five year renewal. A. Resolution No. 22-12: Brownstone Restaurant and Bar, Brennan and Lori Sullivan, owners, located at Lot 7, Block 3, Original Plat Addition, City of Brookings, also known as 313 Main Avenue. B. Resolution No. 23-12: BraVo’s, Kip and Michelle Pharis, Owners, 610 Medary Avenue, Brookings, South Dakota, legal description: Lots 3-4-5, Randi Peterson Addition. Enclosed are two resolutions and operating agreements that address: A. The Brownstone The operating agreement promulgated by Resolution No. 22-12 would replace, if enacted, the previously issued Brownstone agreement with a standardized agreement eliminates the one-year trial period. The agreement would be retroactively dated to their original operating agreement date, at which time they paid the full $25,000 fee. B. BraVo’s The operating agreement promulgated by Resolution No. 23-12 addresses the current temporary operating agreement issued to BraVo’s. This new operating agreement eliminates the one-year extension previously awarded to BraVo’s and replaces it with a standardized operating agreement, which would be effective March 1, 2012. In order for the operating agreement to be effective on that date, the applicant would need to pay the amount established in Agenda Item #11 with a prorated credit of his pre-payment on the extension. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings January 24, 2012 151 A. Resolution No. 22-12: Brownstone Restaurant and Bar, Brennan and Lori Sullivan, owners, located at Lot 7, Block 3, Original Plat Addition, City of Brookings, also known as 313 Main Avenue. Resolution No. 22-12 Liquor Operating Agreement: Brownstone Restaurant & Bar Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement between the City of Brookings and Brennan and Lori Sullivan, owners, Brownstone Restaurant & Bar, for the purpose of a liquor manager to operate the On-Sale Establishment or business for and on behalf of the City of Brookings at 313 Main Ave., also known as the Brownstone Restaurant & Bar. BE IT FURTHER RESOLVED That the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of 10 years, with a five year renewal, commencing July 26, 2011. Passed and approved this 12th day of January 2012. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings January 24, 2012 152 LIQUOR OPERATING AGREEMENT Brownstone Restaurant & Bar THIS AGREEMENT made and entered into by and between the CITY OF BROOKINGS, a municipal corporation of the State of South Dakota, hereinafter referred to as the “City” and Brennan and Lori Sullivan, owners, Brownstone Restaurant & Bar, hereinafter referred to as “Manager.” WITNESSETH; WHEREAS, the City has been issued an on-sale alcoholic beverage license and is engaged in the sale of alcoholic beverages, and WHEREAS, the City desires to enter into an Operating Agreement on a limited basis with the Manager for the purpose of operating an on-sale establishment or business for and on behalf of the City pursuant to law, and WHEREAS, the Manager has offered to have facilities in which to operate said on-sale establishment solely upon the premises hereinafter described. NOW, THEREFORE IT IS MUTUALLY AGREED AS FOLLOWS: 1. This Agreement is made and entered into on a limited basis between the parties hereto allow the Manager to operate a retail on-sale premises, pursuant to and in accordance with all of the terms and conditions of this Agreement in accordance with all State laws and City Ordinances now in effect and as may be enacted in the future. 2. The Manager shall be individually responsible for all operating expenses of said on-sale establishment, including but not limited to utilities, taxes, insurance, and license fees, if any. The Manager shall furnish all equipment and fixtures necessary to operate the establishment. 3. The on-sale establishment shall be located upon real estate in the City of Brookings, South Dakota, described as: Lot 7, Block 3, Original Plat Addition, City of Brookings, Brookings County, South Dakota 4. The Manager shall dispense only alcoholic beverages supplied by the Municipal off-sale establishment. 5. City of Brookings January 24, 2012 153 This Agreement shall be in full force and effect for a period of five (5) years with the Manager having the option and privilege of a five (5) year extension, subject to the approval of the governing body of the City of Brookings. 6. Either the Manager or the City may terminate this Agreement without cause upon ninety (90) days written notice served by either party upon the other. The City reserves the right to immediately suspend or revoke this Agreement without ninety (90) days written notice for alcohol related violations in accordance with the provisions of Resolution No. 25-88 or any amendments thereto or for any late payments for alcoholic beverages supplied by the Municipal off-sale establishment to be sold on the premises of Manager. 7. The Manager shall receive as full compensation for its services rendered, the net profit from the on-sale establishment under its management, and the sole profit to be derived by the City shall be the markup hereinafter set forth on alcoholic beverages furnished by the municipality to the Manager for the purposes of resale on the premises as above described. 8. The Manager shall pay to the City for all alcoholic beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of distilled spirits and wine supplied by the City, plus eleven percent (11%) in excess of such cost; the Manager shall pay to the City for all malt beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of malt beverages, plus ten percent (10%) in excess of such cost. The actual cost shall include cost price and transportation charges. The markup percentages provided in this Agreement are subject to change by the City of Brookings. In the event markup percentages are changed by Ordinance, then the markup percentages provided by City Ordinance shall supercede the markup percentages provided herein. The Manager further agrees that if either of the markup percentages shall be increased at any time by the City, the Manager shall pay the markup as so increased. 9. A complete and detailed record shall be maintained by the City of all alcoholic beverages supplied to the on-sale Manager and such alcoholic beverages so supplied shall be evidenced by pre-numbered invoices prepared in triplicate showing the date, quality, brand, size, and actual cost of such item, and such invoice shall bear the signature of the authorized representative of the on-sale Manager or its authorized representative. One copy thereof shall be retained by the Municipal off-sale establishment, one copy shall be retained by the on-sale establishment, and one copy shall be filed with the City Clerk. All copies shall be kept as permanent records and made available for reference and audit purposes. The Manager also agrees to maintain a complete record of all alcoholic beverages received from the City. 10. The Manager agrees to pay the CITY OF BROOKINGS an Operating Agreement Fee of Twenty-five Thousand and no/100 Dollars ($25,000) at or prior to the execution of this Agreement. City of Brookings January 24, 2012 154 The Manager agrees to pay the CITY OF BROOKINGS, an Annual Renewal License Fee of One Thousand Five Hundred, and no/100 Dollars ($1,500.00), which is due on or by January 1, 2013. The payment of the Annual Renewal License Fee will not extend the term of this Operating Agreement beyond the term provided herein. 11. The Manager agrees to keep the premises in a neat, clean and attractive appearance, and Manager further agrees to operate said on-sale establishment only on such days and at such hours as permitted by state law and city ordinances. 12. The Manager shall have the right to return, at any time, alcoholic beverages received from the City and to receive in return any deposit made for such alcoholic beverages; in the event of termination of the business, all unused alcoholic beverages, which may be resold without discount may be returned to the City and the Manager shall be reimbursed for the of such alcoholic beverages. 13. The Manager agrees to abide by the credit policies of the City and acknowledges, by execution of this Agreement, receipt of a copy of the credit policies of the City. The City reserves the right to change or terminate its credit policies at any time, but shall be required to provide written notice to Manager prior to the effective date of the change or termination date of the credit policies. 14. The Manager agrees to furnish the City upon demand, evidence of payment of the following: A. All salaries of on-sale employees; B. Social Security and withholding taxes on said employees; C. Worker’s Compensation insurance premiums covering said employees; D. Unemployment taxes on the payrolls of said employees; E. General liability insurance protecting both the City and the Manager against claims for injury or damages to persons or property, said policy to have general liability limits of at least Five Hundred Thousand Dollars ($500,000.00) single limit, and One Million Dollars ($1,000,000.00) aggregate, and a limitation of Fifty Thousand Dollars ($50,000.00) for damage to property. The general liability insurance limits are subject to change and Manager agrees to change limits of insurance if required by the City; F. Rent and utility bills; and G. Any and all miscellaneous expenses, including taxes. 15. The Manager agrees to observe all Federal and State laws and ordinances of the City of Brookings. City of Brookings January 24, 2012 155 16. The City covenants and agrees to furnish the on-sale license to Manager pursuant to the terms and conditions of this Operating Agreement and the terms and conditions of the on-sale license. 17. The City shall have the right to make inspections and investigations of the premises during the hours of operation, and make audits and examinations of the records of the Manager relating to the on-sale establishment. 18. It is further specifically understood and agreed that the waiver of the rights of the City under this Agreement shall not constitute a continuous waiver, and any violation or breach of the terms of this Agreement by the Manager shall constitute a separate and distinct offense and grounds for immediate termination and revocation of this Agreement. 19. This agreement shall not be assignable to another person or location without the written consent of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement this 24th day of January, 2012. CITY OF BROOKINGS, South Dakota A Municipal Corporation By: Jeffrey W. Weldon, City Manager ATTEST: Shari Thornes, City Clerk MANAGER By: Business Owner By: Business Owner City of Brookings January 24, 2012 156 B. Resolution No. 23-12: BraVo’s, Kip and Michelle Pharis, Owners, 610 Medary Avenue, Brookings, South Dakota, legal description: Lots 3-4-5, Randi Peterson Addition. Resolution No. 23-12 Liquor Operating Agreement: BraVo’s Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement between the City of Brookings and Kip and Michelle Pharis, owners, BraVo’s, for the purpose of a liquor manager to operate the On-Sale Establishment or business for and on behalf of the City of Brookings at 610 Medary Ave., also known as the BraVo’s. BE IT FURTHER RESOLVED That the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of 10 years, with a five year renewal, commencing on March 1, 2012. Passed and approved this 12th day of January 2012. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings January 24, 2012 157 LIQUOR OPERATING AGREEMENT BraVo’s THIS AGREEMENT made and entered into by and between the CITY OF BROOKINGS, a municipal corporation of the State of South Dakota, hereinafter referred to as the “City” and Kip and Michelle Pharis, owners, BraVo’s, hereinafter referred to as “Manager.” WITNESSETH; WHEREAS, the City has been issued an on-sale alcoholic beverage license and is engaged in the sale of alcoholic beverages, and WHEREAS, the City desires to enter into an Operating Agreement on a limited basis with the Manager for the purpose of operating an on-sale establishment or business for and on behalf of the City pursuant to law, and WHEREAS, the Manager has offered to have facilities in which to operate said on-sale establishment solely upon the premises hereinafter described. NOW, THEREFORE IT IS MUTUALLY AGREED AS FOLLOWS: 1. This Agreement is made and entered into on a limited basis between the parties hereto allow the Manager to operate a retail on-sale premises, pursuant to and in accordance with all of the terms and conditions of this Agreement in accordance with all State laws and City Ordinances now in effect and as may be enacted in the future. 2. The Manager shall be individually responsible for all operating expenses of said on-sale establishment, including but not limited to utilities, taxes, insurance, and license fees, if any. The Manager shall furnish all equipment and fixtures necessary to operate the establishment. 3. The on-sale establishment shall be located upon real estate in the City of Brookings, South Dakota, described as: Lots 3-4-5, Randi Peterson Addition, City of Brookings, Brookings County, South Dakota 4. The Manager shall dispense only alcoholic beverages supplied by the Municipal off-sale establishment. 5. City of Brookings January 24, 2012 158 This Agreement shall be in full force and effect for a period of five (5) years with the Manager having the option and privilege of a five (5) year extension, subject to the approval of the governing body of the City of Brookings. 6. Either the Manager or the City may terminate this Agreement without cause upon ninety (90) days written notice served by either party upon the other. The City reserves the right to immediately suspend or revoke this Agreement without ninety (90) days written notice for alcohol related violations in accordance with the provisions of Resolution No. 25-88 or any amendments thereto or for any late payments for alcoholic beverages supplied by the Municipal off-sale establishment to be sold on the premises of Manager. 7. The Manager shall receive as full compensation for its services rendered, the net profit from the on-sale establishment under its management, and the sole profit to be derived by the City shall be the markup hereinafter set forth on alcoholic beverages furnished by the municipality to the Manager for the purposes of resale on the premises as above described. 8. The Manager shall pay to the City for all alcoholic beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of distilled spirits and wine supplied by the City, plus eleven percent (11%) in excess of such cost; the Manager shall pay to the City for all malt beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of malt beverages, plus ten percent (10%) in excess of such cost. The actual cost shall include cost price and transportation charges. The markup percentages provided in this Agreement are subject to change by the City of Brookings. In the event markup percentages are changed by Ordinance, then the markup percentages provided by City Ordinance shall supercede the markup percentages provided herein. The Manager further agrees that if either of the markup percentages shall be increased at any time by the City, the Manager shall pay the markup as so increased. 9. A complete and detailed record shall be maintained by the City of all alcoholic beverages supplied to the on-sale Manager and such alcoholic beverages so supplied shall be evidenced by pre-numbered invoices prepared in triplicate showing the date, quality, brand, size, and actual cost of such item, and such invoice shall bear the signature of the authorized representative of the on-sale Manager or its authorized representative. One copy thereof shall be retained by the Municipal off-sale establishment, one copy shall be retained by the on-sale establishment, and one copy shall be filed with the City Clerk. All copies shall be kept as permanent records and made available for reference and audit purposes. The Manager also agrees to maintain a complete record of all alcoholic beverages received from the City. 10. The Manager agrees to pay the CITY OF BROOKINGS an Operating Agreement Fee of Twenty-five Thousand and no/100 Dollars ($25,000) at or prior to the execution of this Agreement. City of Brookings January 24, 2012 159 The Manager agrees to pay the CITY OF BROOKINGS, an Annual Renewal License Fee of One Thousand Five Hundred, and no/100 Dollars ($1,500.00), which is due on or by January 1, 2013. The payment of the Annual Renewal License Fee will not extend the term of this Operating Agreement beyond the term provided herein. 11. The Manager agrees to keep the premises in a neat, clean and attractive appearance, and Manager further agrees to operate said on-sale establishment only on such days and at such hours as permitted by state law and city ordinances. 12. The Manager shall have the right to return, at any time, alcoholic beverages received from the City and to receive in return any deposit made for such alcoholic beverages; in the event of termination of the business, all unused alcoholic beverages, which may be resold without discount may be returned to the City and the Manager shall be reimbursed for the of such alcoholic beverages. 13. The Manager agrees to abide by the credit policies of the City and acknowledges, by execution of this Agreement, receipt of a copy of the credit policies of the City. The City reserves the right to change or terminate its credit policies at any time, but shall be required to provide written notice to Manager prior to the effective date of the change or termination date of the credit policies. 14. The Manager agrees to furnish the City upon demand, evidence of payment of the following: A. All salaries of on-sale employees; B. Social Security and withholding taxes on said employees; C. Worker’s Compensation insurance premiums covering said employees; D. Unemployment taxes on the payrolls of said employees; E. General liability insurance protecting both the City and the Manager against claims for injury or damages to persons or property, said policy to have general liability limits of at least Five Hundred Thousand Dollars ($500,000.00) single limit, and One Million Dollars ($1,000,000.00) aggregate, and a limitation of Fifty Thousand Dollars ($50,000.00) for damage to property. The general liability insurance limits are subject to change and Manager agrees to change limits of insurance if required by the City; F. Rent and utility bills; and G. Any and all miscellaneous expenses, including taxes. 15. The Manager agrees to observe all Federal and State laws and ordinances of the City of Brookings. City of Brookings January 24, 2012 160 16. The City covenants and agrees to furnish the on-sale license to Manager pursuant to the terms and conditions of this Operating Agreement and the terms and conditions of the on-sale license. 17. The City shall have the right to make inspections and investigations of the premises during the hours of operation, and make audits and examinations of the records of the Manager relating to the on-sale establishment. 18. It is further specifically understood and agreed that the waiver of the rights of the City under this Agreement shall not constitute a continuous waiver, and any violation or breach of the terms of this Agreement by the Manager shall constitute a separate and distinct offense and grounds for immediate termination and revocation of this Agreement. 19. This agreement shall not be assignable to another person or location without the written consent of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement this 24th day of January, 2012. CITY OF BROOKINGS, South Dakota A Municipal Corporation By: Jeffrey W. Weldon, City Manager ATTEST: Shari Thornes, City Clerk MANAGER By: Business Owner By: Business Owner City of Brookings January 24, 2012 161 Alcohol Licenses 13. Public hearing and action on Resolution No. 24-12, a Resolution authorizing the City Manager to sign a new Operating Agreement for On-Sale Liquor at one of the following locations for a term of ten years, with a five year renewal: A. Gonz Productions, Inc., dba Main Street Pub & Grill, 408 Main Avenue, Lot 5, Block 7, Original Plat Addition, Garner Hansen, owner. B. Old Market, LLC, dba Old Market Eatery, 424 5th Avenue, Lots 15-18, Block 7, Original Plat Addition, Katie Knutson and Jael Thorpe, owners. This agenda item contemplates issuing a standardized operating agreement to one of the two remaining original applicants. This operating agreement was previously issued to the Shamrock. If the City Council desires to issue the operating agreement to Gonz Productions, the fee would be the amount established in Agenda Item #11 with a standardized operating agreement effective March 1, 2012. The Old Market is currently operating under the temporary use of the operating agreement previously issued to Buffalo Wild Wings and prepaid $2,500 for that temporary use. If the City Council decides to issue the operating agreement to Old Market, LLC, the fee would be the amount established in Agenda Item #11, effective March 1, 2012 with prorated credit of amount prepaid. City Manager Introduction Action: Open and Close Public Hearing, Motion to Approve, Roll Call City of Brookings January 24, 2012 162 A. Gonz Productions, Inc., dba Main Street Pub & Grill, 408 Main Avenue, Lot 5, Block 7, Original Plat Addition, Garner Hansen, owner. Resolution No. 24-12 A Liquor Operating Agreement: Gonz Productions, Inc., dba Main Street Pub & Grill Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement between the City of Brookings and Garner Hansen, owner, Gonz Productions, Inc., dba Main Street Pub & Grill, for the purpose of a liquor manager to operate the On-Sale Establishment or business for and on behalf of the City of Brookings at 408 Main Ave., also known as the Main Street Pub & Grill. BE IT FURTHER RESOLVED That the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of 10 years, with a five year renewal, commencing March 1, 2012. Passed and approved this 12th day of January 2012. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings January 24, 2012 163 LIQUOR OPERATING AGREEMENT Gonz Productions, Inc. (dba Main Street Pub & Grill) THIS AGREEMENT made and entered into by and between the CITY OF BROOKINGS, a municipal corporation of the State of South Dakota, hereinafter referred to as the “City” and Garner Hansen, owner, Gonz Productions, Inc., dba Main Street Pub & Grill, hereinafter referred to as “Manager.” WITNESSETH; WHEREAS, the City has been issued an on-sale alcoholic beverage license and is engaged in the sale of alcoholic beverages, and WHEREAS, the City desires to enter into an Operating Agreement on a limited basis with the Manager for the purpose of operating an on-sale establishment or business for and on behalf of the City pursuant to law, and WHEREAS, the Manager has offered to have facilities in which to operate said on-sale establishment solely upon the premises hereinafter described. NOW, THEREFORE IT IS MUTUALLY AGREED AS FOLLOWS: 1. This Agreement is made and entered into on a limited basis between the parties hereto allow the Manager to operate a retail on-sale premises, pursuant to and in accordance with all of the terms and conditions of this Agreement in accordance with all State laws and City Ordinances now in effect and as may be enacted in the future. 2. The Manager shall be individually responsible for all operating expenses of said on-sale establishment, including but not limited to utilities, taxes, insurance, and license fees, if any. The Manager shall furnish all equipment and fixtures necessary to operate the establishment. 3. The on-sale establishment shall be located upon real estate in the City of Brookings, South Dakota, described as: Lot 5, Block 7, Original Plat Addition, City of Brookings, Brookings County, South Dakota 4. The Manager shall dispense only alcoholic beverages supplied by the Municipal off-sale establishment. City of Brookings January 24, 2012 164 5. This Agreement shall be in full force and effect for a period of five (5) years with the Manager having the option and privilege of a five (5) year extension, subject to the approval of the governing body of the City of Brookings. 6. Either the Manager or the City may terminate this Agreement without cause upon ninety (90) days written notice served by either party upon the other. The City reserves the right to immediately suspend or revoke this Agreement without ninety (90) days written notice for alcohol related violations in accordance with the provisions of Resolution No. 25-88 or any amendments thereto or for any late payments for alcoholic beverages supplied by the Municipal off-sale establishment to be sold on the premises of Manager. 7. The Manager shall receive as full compensation for its services rendered, the net profit from the on-sale establishment under its management, and the sole profit to be derived by the City shall be the markup hereinafter set forth on alcoholic beverages furnished by the municipality to the Manager for the purposes of resale on the premises as above described. 8. The Manager shall pay to the City for all alcoholic beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of distilled spirits and wine supplied by the City, plus eleven percent (11%) in excess of such cost; the Manager shall pay to the City for all malt beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of malt beverages, plus ten percent (10%) in excess of such cost. The actual cost shall include cost price and transportation charges. The markup percentages provided in this Agreement are subject to change by the City of Brookings. In the event markup percentages are changed by Ordinance, then the markup percentages provided by City Ordinance shall supercede the markup percentages provided herein. The Manager further agrees that if either of the markup percentages shall be increased at any time by the City, the Manager shall pay the markup as so increased. 9. A complete and detailed record shall be maintained by the City of all alcoholic beverages supplied to the on-sale Manager and such alcoholic beverages so supplied shall be evidenced by pre-numbered invoices prepared in triplicate showing the date, quality, brand, size, and actual cost of such item, and such invoice shall bear the signature of the authorized representative of the on-sale Manager or its authorized representative. One copy thereof shall be retained by the Municipal off-sale establishment, one copy shall be retained by the on-sale establishment, and one copy shall be filed with the City Clerk. All copies shall be kept as permanent records and made available for reference and audit purposes. The Manager also agrees to maintain a complete record of all alcoholic beverages received from the City. 10. The Manager agrees to pay the CITY OF BROKINGS an Operating Agreement Fee of Twenty- five Thousand and no/100 Dollars ($25,000) at or prior to the execution of this Agreement. City of Brookings January 24, 2012 165 The Manager agrees to pay the CITY OF BROOKINGS, an Annual Renewal License Fee of One Thousand Five Hundred, and no/100 Dollars ($1,500.00), which is due on or by January 1, 2013. The payment of the Annual Renewal License Fee will not extend the term of this Operating Agreement beyond the term provided herein. 11. The Manager agrees to keep the premises in a neat, clean and attractive appearance, and Manager further agrees to operate said on-sale establishment only on such days and at such hours as permitted by state law and city ordinances. 12. The Manager shall have the right to return, at any time, alcoholic beverages received from the City and to receive in return any deposit made for such alcoholic beverages; in the event of termination of the business, all unused alcoholic beverages, which may be resold without discount may be returned to the City and the Manager shall be reimbursed for the of such alcoholic beverages. 13. The Manager agrees to abide by the credit policies of the City and acknowledges, by execution of this Agreement, receipt of a copy of the credit policies of the City. The City reserves the right to change or terminate its credit policies at any time, but shall be required to provide written notice to Manager prior to the effective date of the change or termination date of the credit policies. 14. The Manager agrees to furnish the City upon demand, evidence of payment of the following: A. All salaries of on-sale employees; B. Social Security and withholding taxes on said employees; C. Worker’s Compensation insurance premiums covering said employees; D. Unemployment taxes on the payrolls of said employees; E. General liability insurance protecting both the City and the Manager against claims for injury or damages to persons or property, said policy to have general liability limits of at least Five Hundred Thousand Dollars ($500,000.00) single limit, and One Million Dollars ($1,000,000.00) aggregate, and a limitation of Fifty Thousand Dollars ($50,000.00) for damage to property. The general liability insurance limits are subject to change and Manager agrees to change limits of insurance if required by the City; F. Rent and utility bills; and G. Any and all miscellaneous expenses, including taxes. 15. The Manager agrees to observe all Federal and State laws and ordinances of the City of Brookings. City of Brookings January 24, 2012 166 16. The City covenants and agrees to furnish the on-sale license to Manager pursuant to the terms and conditions of this Operating Agreement and the terms and conditions of the on-sale license. 17. The City shall have the right to make inspections and investigations of the premises during the hours of operation, and make audits and examinations of the records of the Manager relating to the on-sale establishment. 18. It is further specifically understood and agreed that the waiver of the rights of the City under this Agreement shall not constitute a continuous waiver, and any violation or breach of the terms of this Agreement by the Manager shall constitute a separate and distinct offense and grounds for immediate termination and revocation of this Agreement. 19. This agreement shall not be assignable to another person or location without the written consent of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement this 24th day of January, 2012. CITY OF BROOKINGS, South Dakota A Municipal Corporation By: Jeffrey W. Weldon, City Manager ATTEST: Shari Thornes, City Clerk MANAGER By: Business Owner City of Brookings January 24, 2012 167 B. Old Market, LLC, dba Old Market Eatery, 424 5th Avenue, Lots 15-18, Block 7, Original Plat Addition, Katie Knutson and Jael Thorpe, owners. Resolution No. 24-12 B Liquor Operating Agreement: Old Market LLC, dba Old Market Eatery Be It Resolved by the City of Brookings, South Dakota, that the City Council hereby approves a Lease Agreement for the Operating Liquor Management Agreement between the City of Brookings and Katie Knutson and Jael Thorpe, owners, Old Market LLC, dba Old Market Eatery, for the purpose of a liquor manager to operate the On-Sale Establishment or business for and on behalf of the City of Brookings at 424 5th Ave., also known as the Old Market Eatery. BE IT FURTHER RESOLVED That the City Manager be authorized to execute the Agreement on behalf of the City, which shall be for a period of 10 years, with a five year renewal, commencing March 1, 2012. Passed and approved this 12th day of January 2012. CITY OF BROOKINGS Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings January 24, 2012 168 LIQUOR OPERATING AGREEMENT Old Market LLC (dba Old Market Eatery) THIS AGREEMENT made and entered into by and between the CITY OF BROOKINGS, a municipal corporation of the State of South Dakota, hereinafter referred to as the “City” and Katie Knutson and Jael Thorpe, owners, Old Market LLC, dba Old Market Eatery, hereinafter referred to as “Manager.” WITNESSETH; WHEREAS, the City has been issued an on-sale alcoholic beverage license and is engaged in the sale of alcoholic beverages, and WHEREAS, the City desires to enter into an Operating Agreement on a limited basis with the Manager for the purpose of operating an on-sale establishment or business for and on behalf of the City pursuant to law, and WHEREAS, the Manager has offered to have facilities in which to operate said on-sale establishment solely upon the premises hereinafter described. NOW, THEREFORE IT IS MUTUALLY AGREED AS FOLLOWS: 1. This Agreement is made and entered into on a limited basis between the parties hereto allow the Manager to operate a retail on-sale premises, pursuant to and in accordance with all of the terms and conditions of this Agreement in accordance with all State laws and City Ordinances now in effect and as may be enacted in the future. 2. The Manager shall be individually responsible for all operating expenses of said on-sale establishment, including but not limited to utilities, taxes, insurance, and license fees, if any. The Manager shall furnish all equipment and fixtures necessary to operate the establishment. 3. The on-sale establishment shall be located upon real estate in the City of Brookings, South Dakota, described as: Condo Unit 201 in 5th Street Condos, located at 424 5th Street. All Lots 15-16-17-18, Block 7, Original Plat, City of Brookings, Brookings County, South Dakota. (See Exhibit A – Map depicting interior (Old Market Eatery only) and exterior spaces (parking lots and patio) licensed to serve and consume alcohol. City of Brookings January 24, 2012 169 4. The Manager shall dispense only alcoholic beverages supplied by the Municipal off-sale establishment. 5. This Agreement shall be in full force and effect for a period of five (5) years with the Manager having the option and privilege of a five (5) year extension, subject to the approval of the governing body of the City of Brookings. 6. Either the Manager or the City may terminate this Agreement without cause upon ninety (90) days written notice served by either party upon the other. The City reserves the right to immediately suspend or revoke this Agreement without ninety (90) days written notice for alcohol related violations in accordance with the provisions of Resolution No. 25-88 or any amendments thereto or for any late payments for alcoholic beverages supplied by the Municipal off-sale establishment to be sold on the premises of Manager. 7. The Manager shall receive as full compensation for its services rendered, the net profit from the on-sale establishment under its management, and the sole profit to be derived by the City shall be the markup hereinafter set forth on alcoholic beverages furnished by the municipality to the Manager for the purposes of resale on the premises as above described. 8. The Manager shall pay to the City for all alcoholic beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of distilled spirits and wine supplied by the City, plus eleven percent (11%) in excess of such cost; the Manager shall pay to the City for all malt beverages sold by the City to the Manager for resale on the above-described premises, the actual cost of malt beverages, plus ten percent (10%) in excess of such cost. The actual cost shall include cost price and transportation charges. The markup percentages provided in this Agreement are subject to change by the City of Brookings. In the event markup percentages are changed by Ordinance, then the markup percentages provided by City Ordinance shall supercede the markup percentages provided herein. The Manager further agrees that if either of the markup percentages shall be increased at any time by the City, the Manager shall pay the markup as so increased. 9. A complete and detailed record shall be maintained by the City of all alcoholic beverages supplied to the on-sale Manager and such alcoholic beverages so supplied shall be evidenced by pre-numbered invoices prepared in triplicate showing the date, quality, brand, size, and actual cost of such item, and such invoice shall bear the signature of the authorized representative of the on-sale Manager or its authorized representative. One copy thereof shall be retained by the Municipal off-sale establishment, one copy shall be retained by the on-sale establishment, and one copy shall be filed with the City Clerk. All copies shall be kept as permanent records and made available for reference and audit purposes. The Manager also agrees to maintain a complete record of all alcoholic beverages received from the City. City of Brookings January 24, 2012 170 10. The Manager agrees to pay the CITY OF BROOKINGS an Operating Agreement Fee of Twenty-five Thousand and no/100 Dollars ($25,000) at or prior to the execution of this Agreement. The Manager agrees to pay the CITY OF BROOKINGS, an Annual Renewal License Fee of One Thousand Five Hundred, and no/100 Dollars ($1,500.00), which is due on or by January 1, 2013. The payment of the Annual Renewal License Fee will not extend the term of this Operating Agreement beyond the term provided herein. 11. The Manager agrees to keep the premises in a neat, clean and attractive appearance, and Manager further agrees to operate said on-sale establishment only on such days and at such hours as permitted by state law and city ordinances. 12. The Manager shall have the right to return, at any time, alcoholic beverages received from the City and to receive in return any deposit made for such alcoholic beverages; in the event of termination of the business, all unused alcoholic beverages, which may be resold without discount may be returned to the City and the Manager shall be reimbursed for the of such alcoholic beverages. 13. The Manager agrees to abide by the credit policies of the City and acknowledges, by execution of this Agreement, receipt of a copy of the credit policies of the City. The City reserves the right to change or terminate its credit policies at any time, but shall be required to provide written notice to Manager prior to the effective date of the change or termination date of the credit policies. 14. The Manager agrees to furnish the City upon demand, evidence of payment of the following: A. All salaries of on-sale employees; B. Social Security and withholding taxes on said employees; C. Worker’s Compensation insurance premiums covering said employees; D. Unemployment taxes on the payrolls of said employees; E. General liability insurance protecting both the City and the Manager against claims for injury or damages to persons or property, said policy to have general liability limits of at least Five Hundred Thousand Dollars ($500,000.00) single limit, and One Million Dollars ($1,000,000.00) aggregate, and a limitation of Fifty Thousand Dollars ($50,000.00) for damage to property. The general liability insurance limits are subject to change and Manager agrees to change limits of insurance if required by the City; F. Rent and utility bills; and G. Any and all miscellaneous expenses, including taxes. City of Brookings January 24, 2012 171 15. The Manager agrees to observe all Federal and State laws and ordinances of the City of Brookings. 16. The City covenants and agrees to furnish the on-sale license to Manager pursuant to the terms and conditions of this Operating Agreement and the terms and conditions of the on-sale license. 17. The City shall have the right to make inspections and investigations of the premises during the hours of operation, and make audits and examinations of the records of the Manager relating to the on-sale establishment. 18. It is further specifically understood and agreed that the waiver of the rights of the City under this Agreement shall not constitute a continuous waiver, and any violation or breach of the terms of this Agreement by the Manager shall constitute a separate and distinct offense and grounds for immediate termination and revocation of this Agreement. 19. This agreement shall not be assignable to another person or location without the written consent of the City. IN WITNESS WHEREOF, the parties hereto have executed this Agreement this 24th day of January, 2012. CITY OF BROOKINGS, South Dakota A Municipal Corporation By: Jeffrey W. Weldon, City Manager ATTEST: Shari Thornes, City Clerk MANAGER By: Business Owner By: Business Owner City of Brookings January 24, 2012 173 Other Business 14. Action on Resolution No. 25-12, a Resolution providing for the Creation of Tax Incremental District Number Six (#6), City of Brookings. Applicant: City of Brookings The City of Brookings proposes to create a Tax Increment District Number Six in the northeast portion of the city. The legal boundaries of the proposed district are as follows: Block 2 of Foster Addition in the NE¼ of Section 19-T110N- R49W of the 5th P.M., City of Brookings, Brookings County, State of South Dakota The property is currently owned by the City of Brookings and is planned for future industrial park development. The tax increment generated will be utilized to further enhance economic development within the district area. Recommendation: The Planning Commission voted 7 yes and 0 no to recommend that the creation of TID # 6 and the boundaries of the district be approved. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings January 24, 2012 174 Resolution No. 25-12 Resolution Providing for the Creation of Tax Incremental District Number Six, City Of Brookings Whereas, the Planning Commission has recommended the District Boundaries for Tax Incremental District Number Six, City of Brookings, and has recommended its creation; and Whereas, the City of Brookings has the powers, pursuant to SDCL 11-9-2, to create Tax Incremental District Number Six, City of Brookings, and to define its boundaries. Now, Therefore, It Is Hereby Resolved: 1. Authority and Declaration of Necessity. The City of Brookings declares the necessity for the creation of Tax Incremental District Number Six, City of Brookings (hereinafter sometimes referred to as the “District”), pursuant to SDCL Chapter 11-9. Further, the City finds that the improvement of the area within the District is likely to enhance significantly the value of substantially all of the other real property in the District and is necessary for economic development within the city. 2. Findings of Blight. The City Council makes the following findings with regard to blight: a. More than 25% of the property in the District is a blighted area; b. Improvements to the District are likely to add millions of dollars of assessed valuation to the District and will significantly and substantially enhance the value of all property within the District; c. There is a reasonable likelihood that there will be industrial development built within the District. d. The aggregate assessed value of the District plus the tax incremental base of all other existing Districts in the city does not exceed Ten (10%) percent of the total assessed valuation in the City. e. The District is predominantly open bare land void of site improvements, that impairs the sound growth of the City. f. There exist inadequate infrastructure which retard the provision of industrial accommodations. g. The District constitutes a blighted area as defined in SDCL Chapter 11-9. 3. Findings of Maximum Percentage of Tax Incremental Districts. The aggregate assessed value of the taxable property in the District, plus all other tax incremental districts, does not exceed Ten (10%) percent of the total assessed valuation of the City of Brookings. 4. Creation of District. There is hereby created, pursuant to SDCL Chapter 11-9, Tax Incremental District Number Six, City of Brookings. The District is hereby created on the day this Resolution becomes effective, which shall be twenty days after publication of this Resolution. City of Brookings January 24, 2012 175 5. Designation of District boundaries. The District shall be located with the northern, southern, western and eastern boundaries of the following described real property: Block 2 of Foster Addition located in the NE ¼ of Section 19-T110N-R49W of the 5th P.M., City of Brookings, Brookings County, State of South Dakota 6. Creation of Tax Incremental Fund. There is hereby created, pursuant to SDCL 11-9-31, a City of Brookings Tax Incremental District Number Six Fund, which shall be a segregated asset account. All tax increments collected pursuant to Tax Incremental District Number Six shall be deposited into the Tax Incremental District Number Six Fund. All funds in the Tax Incremental District Number Six Fund shall be used solely for those purposes expressly stated and reasonably inferred in SDCL Chapter 11-9. Passed and approved this 24th day of January 2012. CITY OF BROOKINGS ____________________________________ ATTEST: Tim Reed, Mayor Shari Thornes, City Clerk City of Brookings January 24, 2012 176 NOTICE OF PUBLIC HEARING OF THE CITY OF BROOKINGS PLANNING COMMISSION ON THE CREATION OF CITY OF BROOKINGS TAX INCREMENTAL DISTRICT NUMBER SIX Notice is hereby given pursuant to Section 11-9-3 of the South Dakota Codified Laws, that a public hearing shall be conducted at 311 3rd Avenue in the Brookings City Council Chamber in the City of Brookings, on January 17, 2012, at 5:30 PM or as soon thereafter as can be heard by the City Planning Commission of the City of Brookings, on the question of whether to recommend the formation of a Tax Incremental District to be located in the City of Brookings in the following location: Description: Block 2 of Foster Addition in the NE ¼ of Section 19-T110N-R49W of the 5th P.M., City of Brookings, Brookings County, State of South Dakota The Tax Increment District would be created to assist in the development of public improvements in the District. At said time and place, the City Planning Commission shall give all parties who appear or submit written comments an opportunity to express their views with respect to the proposed creation of the District and its proposed location. ____________________________ Dan Hanson Planning & Zoning Administrator City of Brookings January 24, 2012 177 Planning Commission Brookings, South Dakota January 17, 2012 OFFICIAL MINUTES Chairperson Wayne Avery called the special meeting of the City Planning Commission to order on January 17, 2012, at 5:30 PM in the Council Chamber at City Hall. Members present were Hal Bailey, Mike Cameron, Donna DeKraai, Greg Fargen, Al Heuton, John Sydow, and Avery. Alan Gregg and John Gustafson were absent. Others present were Community Development Director Mike Struck, City Manager Jeff Weldon, and Planning and Zoning Administrator Dan Hanson. Item #4 – Pursuant to Section 11-9-3 of the SDCL, a public hearing was held on the question of whether to recommend the formation of a Tax Incremental District on Block 2, Foster Addition in the NE ¼ of Section 19-T110N-R49W. (Fargen/Sydow) Motion to approve the creation of TID #6 and the boundaries of said district. All present voted aye. MOTION CARRIED. SUMMARY OF DISCUSSION Item #4 – Community Development Director Mike Struck stated the land was owned by the city and was in the Industrial I-1 District. The tax increment from future developments would be used to finance improvements on the lot. The requested action would certify the district and a project plan would be developed and submitted to the Planning Commission at a later date. Cameron noted that if no development was proposed, the district could be dissolved. Struck remarked that there was a five (5) year time frame in which to fund project costs. TID #2 was dissolved since no project was identified after the district was created. Fargen clarified that the requested action was simply to create the district boundaries. Struck added that a project plan would be developed after the TID was created. Both the Planning Commission and the City Council would have to approve the project plan. Tax Increment Finance District #6 ¯ 0 150 300 450 600 Feet32nd Avenue34th Avenue City of Brookings January 24, 2012 180 Other Business 15. Action on Resolution No. 26-12, a Resolution of Intent to create Business Improvement District Number One. To: Mayor & City Council Members Jeff Weldon, City Manager From: Mike Struck, Community Development Director RE: Business Improvement District #1 – Resolution of Intent Business Improvement District #1 is the means provided by State Law which allows municipalities to implement the Occupational Tax on occupied hotel rooms. At the January 10, 2012 City Council meeting, the Business Improvement District #1 Board of Directors presented their recommendation on a plan for improvements within the district. The next step in the process is to adopt a Resolution of Intent to establish Business Improvement District #1. The Resolution of Intent describes the boundaries of the proposed district, sets the time and place of the public hearing, identifies the proposed improvements, and provides estimated costs for the improvements. In addition, the Resolution of Intent identifies the method of raising the revenue is fair and equitable as every hotel within the district is responsible for charging the $2.00 Occupational Tax to transient guests. The attached resolution satisfies the requirements of SDCL 9-55-7. A timeline of the steps to create a Business Improvement District are provided for your reference. The action items in black have been completed and items in red are proposed dates for action items. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings January 24, 2012 181 STEPS FOR CREATING A BUSINESS IMPROVEMENT DISTRICT Date May 10, 2011 City Council adopts resolution designating boundaries of business improvement district. SDCL 9-55-4 &9-55-5. (Resolution Designating Boundaries of District) May 10, 2011 City Council adopts resolution establishing a business improvement district board of directors. SDCL 9-55-5 & 9-55-6. (Resolution Establishing Business Improvement Board) June 28, 2011 Mayor with approval of City Council appoints business improvement district board of directors. SDCL 9-55-5. January 10, 2012 Board of Directors recommends plan for improvements in the district to City Council. SDCL 9-55-5. January 24, 2012 City Council adopts resolution of intent to create business improvement district. SDCL 9-55-7. (Resolution of Intent to Establish BID) January 25, 2012 Notice of Hearing is mailed 30 days prior to the hearing to each owner of taxable property for the proposed district as well as to the occupant of the property along with a copy of the resolution of intent to create the business improvement district. SDCL 9-55-8. February 28, 2012 Public Hearing and adoption of ordinance establishing the business improvement district. SDCL 9-55-10 – 9-55-12. (Brookings Business Improvement District Ordinance) March 2, 2012 Publish Notice of Adoption of Ordinance March 23, 2012 Effective Date of Ordinance City of Brookings January 24, 2012 182 Resolution No. 26-12 Resolution of Intent to establish Brookings Business Improvement District #1 Whereas, pursuant to SDCL Ch. 9-55, the City of Brookings is authorized to create a business improvement district; and Whereas, the City of Brookings, on June 28, 2011 approved a Business Improvement Board; and Whereas, the Business Improvement Board made its recommendation to the City of Brookings on January 10, 2012 pursuant to SDCL 9-55-3; 9-55-7; and Whereas, upon receipt of that recommendation, the City of Brookings is required to adopt a Resolution of Intent to establish the Brookings Business Improvement District #1 pursuant to SDCL 9-55-7; and Whereas, if approved by the City Council, the proposed Brookings Business Improvement District #1 will be created for the purposes allowed by SDCL 9-55-3; and Whereas, the method for raising revenue for the Brookings Business Improvement District #1 will be fair and equitable. Now, Therefore, Be it Resolved by the City of Brookings, SD: 1. Proposed District. The City Council hereby expresses its intent to create the Brookings Business Improvement District #1 within the city of Brookings. The boundaries of the proposed district will include all hotels/motels with 25 or more rooms situated within the incorporated limits of the City of Brookings and further described as: Comfort Inn 514 Sunrise Ridge Road, Brookings, SD 57006 Days Inn 2500 E 6th Street, Brookings, SD 57006 Fairfield Inn & Suites by Marriot 3000 LeFevre Drive, Brookings, SD 57006 Hampton Inn & Suites 3017 LeFevre Drive, Brookings, SD 57006 Holiday Inn Express 3020 LeFevre Drive, Brookings, SD 57006 Sonshine Inn 108 6th Street, Brookings, SD 57006 Staurolite Inn & Suites 2515 E 6th Street, Brookings, SD 57006 Super 8 3034 LeFevre Drive, Brookings, SD 57006 2. Public Hearing. The city shall hold a public hearing on the proposed establishment of the Brookings Business Improvement District #1 on Tuesday, February 28, 2012, at 6 p.m., in the Council Chambers in City Hall, 311 3rd Avenue, Brookings, South Dakota. The City Clerk is hereby authorized and directed to (A) publish notice of the hearing in the official newspaper of the city not less than 30 days prior to the hearing date, and (B) mail a complete copy of the resolution of intent and the notice of hearing not less than 30 days prior to the hearing date to (i) each owner of taxable property as shown on the property tax roll for the proposed district, City of Brookings January 24, 2012 183 and (ii) the occupant of each address located in the proposed district. Such notice shall be substantially in the form attached hereto. 3. Proposed Use of Funds. In accordance with SDCL Ch. 9-55 of the South Dakota Codified Laws, it is proposed that the proposed Business Improvement District #1 would impose an occupational tax of two dollars ($2.00) per night per rented room for all lodging rooms within the Brookings Business Improvement District #1, and that the proceeds of such occupation tax would be remitted to the City of Brookings for any use allowed pursuant to SDCL 9-55-3. 4. Estimated Costs of Activities. The activities described in Paragraph 3 above will be ongoing, and will be outlined in the annual budget developed each year by the Brookings Business Improvement District #1 Board of Directors, subject to the approval of the Brookings City Council. It is estimated that the cost of such activities will be $400,000 for calendar year 2012. Be It Further Resolved that the boundaries of the Brookings Business Improvement District #1 shall be congruent with the corporate limits of the City of Brookings, SD. Passed and approved this 24th day of January, 2012. City of Brookings, SD Tim Reed, Mayor ATTEST: Shari Thornes, City Clerk City of Brookings January 24, 2012 184 Other Business 16. Market Analysis and letter of support for Haan Development Housing Project. TO: Mayor and City Council Members FROM: City Manager Jeff Weldon RE: Housing study and request for letter of support We recently were informed by a developer of interest in constructing a multi-family apartment project targeted for income-qualified families in Brookings. The project is proposed to be located on Twelfth Street across from Mickelson Middle School on a site approximately three acres in size. The project is proposed to be privately constructed, but utilizing low- income housing tax credits to generate capital from privately-placed investment tax credits. In order for the developer to process their application to the State of South Dakota for such credits, the developers need a letter of support from the host community. Attached is the market study recently completed on Brookings on behalf of the developer for this specific project. The Executive Summary is located on pages A34-36. The developer is requesting such a letter of support from the City of Brookings for this housing project. City Manager Introduction Action: Motion to Approve, Request Public Comment, Roll Call City of Brookings January 24, 2012 187 Tim Reed Mayor January 25, 2012 TO WHOM IT MAY CONCERN: The City of Brookings, South Dakota is pleased to lend its support to an income-qualified housing project in our community proposed by Phoenix Holding/G.A. Haan Development. The proposed project consists of 40-48 rental units on the southwest corner of 17th Avenue South and 12th Street South in Brookings. The development will be targeted to families. At their regular meeting of January 24, 2012 the Brookings City Council reviewed the rental project market study provided by the applicant, which was undertaken by Property Dynamics, and is in concurrence with the need identified therein. In addition, the project is in accordance with the City’s long-range housing plan and will be a welcome amenity for many families in our community. The following is the Council’s official action evidencing approval of the City for the project and authorization for my signature to this letter. INSERT MOTION Sincerely, CITY OF BROOKINGS Tim Reed Mayor PRAIRIE VIEW APARTMENTS BROOKINGS, SOUTH DAKOTA A 40 UNIT TAX CREDIT RENTAL COMMUNITY MARKET STUDY JANUARY 2012 PREPARED BY: PROPERTY DYNAMICS - WOODINVILLE, WASHINGTON PROJECT SPONSOR: BROOKINGS PRAIRIE VIEW APARTMENTS, LLC HARBOR SPRINGS, MICHIGAN TABLE OF CONTENTS ********************************************************************************** Table of Contents...............................................................................................................1 - 2 Disclaimer..........................................................................................................................3 SECTION A - ANALYSIS AND RECOMMENDATIONS 1. Site Information with Market Area Description........................................................ A1 - 7 2. Proposed Development - Project Information........................................................... A8 - 9 3. Community Services ................................................................................................. A10 - 11 4. Comparable Developments........................................................................................ A12 - 14 5. Income Eligible Households....................................................................................... A15 - 20 6. Projects in Planning.................................................................................................... A21 7. Market Area Demographics........................................................................................ A22 - 26 8. Economic Overview.................................................................................................... A27 - 29 9. Existing & Projected Households............................................................................... A30 10. Existing Housing Condition....................................................................................... A31 - 32 11. Housing Authority - Section 8 Vouchers.................................................................... A33 12. Meeting Correspondences........................................................................................... A33 13. Executive Summary.................................................................................................... A34 - 36 SECTION B - POPULATION AND HOUSING A. South Dakota Counties Population 1990 - 2010.......................................................... B2 - 3 B. Brookings County Population 1990 - 2010.................................................................. B4 C. South Dakota Population - Cities Over 3,000 Population 1990 - 2010........................ B5 D. City of Brookings Population 1990 - 2010................................................................... B6 E. City of Brookings Housing Characteristics................................................................... B7 - 8 SECTION C - APARTMENT RENTAL SURVEY A. Summary of Apartments Surveyed............................................................................ C1 - 3 B. Details of Apartments Surveyed................................................................................ C4 - 17 _______________________________________________________ Property Dynamics Page 1 ______________________________________________ January 2012 SECTION D - ECONOMIC DATA A. Unemployment Rate Comparisons............................................................................ D1 B. Annual Changes for Employment............................................................................. D2 C. Employment by Industry........................................................................................... D3 D. Major Employers....................................................................................................... D4 SECTION E - APPENDIX A. Sources of Information.............................................................................................. E1 B. Census Profiles........................................................................................................... E2 - 9 C. Claritas / Ribbon Demographics - Demographic Profiles.......................................... E10 - 17 D. Property Dynamics General Information - Statement of Experience......................... E18 - 20 _______________________________________________________ Property Dynamics Page 2 ______________________________________________ January 2012 Property Dynamics 15625 NE 191 51 Street. Woodinville, WA 98072 Phone (425) 489-9780 • Fax (425) 806-0760 This is to certify that this market study, dated January 2012, is true and correct to the best of our knowledge and belief, and that neither Property Dynamics nor any of its employees or associates have any interest of any kind, financial or otherwise, in Prairie View Apartments, located in Brookings, South Dakota. This study was prepared on a prearranged fixed price and no consideration has been given as to whether or not this project will proceed. We have no interest of any kind with Brookings Prairie View Apartments, LLC, the sponsor of this project or any other projects on which they have worked. As a matter of policy, we have never had any interest of any kind in any project on which we have prepared the Market Study. Gregory M. ahey Property Dynamics Owner & Market Analyst MARKET SURVEYS AND FEASIBILITY STUDIES _______________________________________________________ Property Dynamics Page 3 ______________________________________________ January 2012 SECTION A ANALYSIS AND RECOMMENDATION 1. DESCRIPTION OF PROPOSED SITE PRAIRIE VIEW APARTMENTS - BROOKINGS, SOUTH DAKOTA Client: Brookings Prairie View Apartments LP Haan Development Harbor Springs, Michigan Summary of Subject Property The proposed Prairie View family apartments to be located in Brookings, South Dakota, will include thirty-one (31) two and three bedroom LIHTC units for households at 40, 50 & 60 % of the area median income, as well as eight (8) units at market and one manager’s unit. The subject parcel is located on the south side of 12th Street S., just east of 17th Avenue S., in the southeast part of the City of Brookings, Brookings County, State of South Dakota. The City of Brookings is the State’s 4th most populous city and is located about 60 miles north of Sioux Falls, the State’s largest city. All major services are available in Brookings including a regional hospital, several large grocery stores, banks, most big box retailers including Wal- Mart & Home Depot, all public schools and higher education (South Dakota State University). Site Description:The subject site is square in shape and is level and cleared of most trees. There are fir trees lining 12th Street South. Surrounding Uses Mickelson Middle School is located to the north of the proposed site across 12th St., with an assisted living facility to the east. A single family sub-division is located to the south with new good quality single family homes. Vacant R-3 zoned land is to the west, with a new single family sub-division farther to the west across 17th Avenue W. Zoning:The site is zoned R-3 Property Address:Vacant Land - No address assigned Legal Description Portion of Block 12 in Moriarty - Fourth Addition in the NE 1/4 of Section 36 Township 110 N, Range 50W Lot Size:The site is approximately 3+/- acres Inspection Date:The site was personally visited on Tuesday, December 20, 2011 _______________________________________________________ Property Dynamics Page A-1 ______________________________________________ January 2012 _______________________________________________________ Property Dynamics Page A-2 ______________________________________________ January 2012 _______________________________________________________ Property Dynamics Page A-3 ______________________________________________ January 2012 SUBJECT PARCEL SITE LOOKING WEST ALONG 12TH STREET S. SITE LOOKING SOUTH ALONG EAST BORDER _______________________________________________________ Property Dynamics Page A-4 ______________________________________________ January 2012 SITE LOOKING SOUTH ALONG WEST BORDER SITE LOOKING EAST ALONG SOUTH BORDER_______________________________________________________ Property Dynamics Page A-5 ______________________________________________ January 2012 SITE LOOKING NORTH ALONG WEST BORDER ASSISTED LIVING FACILITY TO THE EAST_______________________________________________________ Property Dynamics Page A-6 ______________________________________________ January 2012 Market Area After discussions with local sources including the managers of the three existing family tax credit projects, as well as Nyla Smith, the Program Specialist with the Brookings County Housing and Redevelopment Commission, we have determined the primary market area to be the entire City of Brookings. We have chosen not to use a secondary market area for this project. A market area profile and map are located on page A23-26. Site Accessibility The proposed site will have very good accessibility and visibility off of 12th Street South, a two-lane east/west arterial which includes sidewalks on either side. Just to the west of the subject property is 17th Ave. S, a two-lane arterial with connections to the northern part of the City. Both of these streets are in good condition and will pose no access problems. We noted no issues with access or visibility that would affect the project’s success. _______________________________________________________ Property Dynamics Page A-7 ______________________________________________ January 2012 2. DESCRIPTION OF PROPOSED PROJECT The Prairie View Apartments will be a forty (40) unit new construction apartment community with thirty-one (31) of the units being tax credit and nine (9) market rate. Unit Mix:Tax Credit Market Rate Total Unit Sizes Two bdrm two bath 15 5 20 900 - 1,000 S.F. Three bdrm two bath 16 4 20 1,100 - 1,200 S.F. Total 31 9 40 Unit Amenities: Refrigerator Range (oven/stove) Dishwasher Disposal Microwave Washer/dryer Air conditioning patio/balcony Carpets Blinds Common Area Amenities: 900 Sq. Ft. Community Space with: Community room w/kitchen Manager’s office Exercise area Children’s play area Garages (1 per unit) Parking spaces: 40 + 40 garages Utilities: Heat Source: Gas Tenant Paid: Gas/ electric/ phone/ cable Owner Paid Utilities: Water/ sewer/ trash Expected Date of Market Entry: October 2013 _______________________________________________________ Property Dynamics Page A-8 ______________________________________________ January 2012 Proposed Rents / Income Limits for Tax Credit Units: Utility Gross Rent Allowance Net Rent 2 - Two bedroom HOME/FMR @ 40 % of Median $ 548.00 $ 116.00 $ 432.00 2 - Two bedroom units FMR @ 50 % of Median $ 568.00 $ 116.00 $ 452.00 2 - Two bedroom units @ 50 % of Median $ 716.00 $ 116.00 $ 637.00 9 - Two bedroom units @ 60 % of Median $ 716.00 $ 116.00 $ 650.00 2 - Three bedroom HOME/FMR @ 40 % of Median $ 697.00 $ 139.00 $ 558.00 2 - Three bedroom units FMR @ 50 % of Median $ 801.00 $ 139.00 $ 662.00 2 - Three bedroom units @ 50 % of Median $ 839.00 $ 139.00 $ 732.00 10 - Three bedroom units @ 60 % of Median $ 839.00 $ 139.00 $ 750.00 31 Projected Income: 2 - Two bedroom units @ $ 432.00 = $ 864.00 x 12 months = $ 10,368.00 2 - Two bedroom units @ $ 452.00 = $ 904.00 x 12 months = $ 10,848.00 2 - Two bedroom units @ $ 637.00 = $ 1,274.00 x 12 months = $ 15,288.00 9 - Two bedroom units @ $ 650.00 = $ 5,850.00 x 12 months = $ 70,200.00 2 - Three bedroom units @ $ 558.00 = $ 1,116.00 x 12 months = $ 13,392.00 2 - Three bedroom units @ $ 662.00 = $ 1,324.00 x 12 months = $ 15,888.00 2 - Three bedroom units @ $ 732.00 = $ 1,464.00 x 12 months = $ 17,568.00 10 - Three bedroom units @ $ 750.00 = $ 7,500.00 x 12 months = $ 90,000.00 31 Total $ 20,296.00 x 12 months = $ 243,552.00 Less 7 % Vacancy & Collection Loss $ ( 17,049.00) Annual Gross Income $ 226,503.00 Note, the project will also include nine market rate units not included in the figures above _______________________________________________________ Property Dynamics Page A-9 ______________________________________________ January 2012 3. COMMUNITY SERVICES Distances to Site: 1. 0.1 Middle School 2. 0.1 Boys & Girls Club 3. 0.3 City Park - Ballfields - Children’s play area 4. 0.3 Intermediate School 5. 0.4 University Mall - J.C. Penney’s, Dollar Tree etc. 6. 0.5 Lewis Pharmacy 7. 0.5 HyVee Super Market/Pharmacy 8. 0.5 First Bank & Trust (in HyVee) 9. 0.7 Fire Station 10. 0.7 High School 11. 1.2 Elementary School 12. 1.4 Hospital 13. 1.8 Wal-Mart 14. 1.9 Library 15. 2.3 Post Office Site Distractions A 0.7 Railroad Tracks B. 0.8 Interstate 29 C. 1.5 Airport Distances to services calculated along dedicated roads Distances to site distractions are “as the crow flies” All distances calculated by Property Dynamics _______________________________________________________ Property Dynamics Page A-10 ______________________________________________ January 2012 Brookings Services 0 mi 0.2 0.4 0.6 0.8 1 _______________________________________________________ Property Dynamics Page A-11 ______________________________________________ January 2012 4. COMPARABLE DEVELOPMENTS IN MARKET AREA Note: Specific information on each project surveyed is located in the “Apartment Rental Survey” section of this report. Pages C1 - C17 Rental Vacancy Survey Vacancy Rate On Tuesday, December 20, 2011 we personally surveyed nineteen (19) apartment projects in the City of Brookings with 1,051 total units. Ten of the projects surveyed with 782 units were market rate, with three projects and 84 units being family tax credit communities. The remaining five projects and 185 units are low income family communities (HUD). We should note that we have not included specific information on those properties in this study. While one of the project managers gave us vacancy and wait list information, the property manager from Mills Property Management did not return any of our calls or messages. In total, including all of the projects surveyed (including the low income communities), we found just eight (8) total vacancies for a 0.76 % vacancy rate. As mentioned, our survey included eleven (11) market rate projects with 782 total units. The projects surveyed were a mix of older communities, to newly built apartments and ranged in size from 4 to 200 units. The eleven communities averaged 71 units and compared to 40 at the subject. The projects were mostly 1 - 3 story garden style, although one, Innovation Village is a three story hotel style building. In general, unit amenities at these eleven projects would be considered as slightly inferior to the subject on average with the exception of the units at Innovation Village, which would be about equal. We should note that rents at Innovation Village run about 30 - 60 % higher than the subject. The subject will include all kitchen appliances including a refrigerator, range, dishwasher, disposal, microwave, washer/dryer in the unit, a patio/balcony and carpets and blinds. As noted, only the Innovation Village project would come close. That project includes all of the amenities listed for the subject. At the eleven projects, all included all basic kitchen appliances with eight including a dishwasher and/or disposal. All of the projects also include carpets and blinds, with seven including a patio or balcony and six included walk-in closets. Three included washer/dryers in the units with one including washer/dryer hookups. We should note that seven reported including air conditioning, although we would assume that all do. As for project based amenities, in general, amenities at these market rate projects are sparse, again _______________________________________________________ Property Dynamics Page A-12 ______________________________________________ January 2012 with the exception of Innovation Village which would be superior to the subject. That project includes a fitness center (additional $ 20/mo), business center, pool, spa and a BBQ/picnic area. The other nine projects included very little community features with seven including laundry facilities, four including garages (all at an additional cost), one had security entrance and two including no project amenities. The subject will include a community area w/kitchen, fitness center and manager’s office, as well as a children’s play area and one garage per unit. As we have noted, the closest comparable to the subject in terms of unit amenities is Innovation Village and includes rents that run about 30 - 60 % above the proposed rents at Prairie View. Of the 782 market rate units surveyed, we found just eight (8) vacancies for a 1.0 % vacancy rate. While the majority of vacancies are two bedroom one bath, the majority of units surveyed were that bedroom size. In addition, while a few of the projects would not comment on vacancy by bedroom size, it did not appear that any size was experiencing any unusual problems. While we were not able to find any historical vacancy information, several of the project managers noted that the current rate is about the same as last year at this time. As noted, we also surveyed three family tax credit communities in the City of Brookings with 84 total units. All three of the projects were 100 % occupied with all including wait lists of 5 - 6 names. We should note that two fo the projects, Green Briar and South Briar, share the same list. The project manager noted that over the past year or so they have been able to keep fully occupied and have been able to fill a vacated unit immediately. They also noted that in addition to their wait list, they receive daily phone calls from persons who are looking for a unit, but are in immediate need and choose not to get on the list. All of the units at Green Briar and South Briar at the 50 & 60 % level, while the units at Three Oaks are all the 60 % AMI level. Finally, we talked to at Mills Property Management regarding five low income family complexes they manage in the City. Those five projects include 185 units with all being fully occupied. In addition, each project maintains a wait list of 4 - 5 names. Again as noted, we have not included any specific information on those projects in this study as the actual property manager of those projects did not return our calls. _______________________________________________________ Property Dynamics Page A-13 ______________________________________________ January 2012 Rental Rates As noted, ten of the eleven projects surveyed included very little in the way of project based amenities, with the exception of Innovation Village which would be considered as superior to the subject. The other ten projects would be slightly inferior in terms of project amenities. In addition, we would rate the subject as again superior to nine of the ten projects surveyed in terms of unit amenities. The only exceptions would again be Innovation Village. We have included below a summary of rents in the area as well as our opinion of the “net adjusted market rents” for the subject project. This figure takes into account the age, condition, amenities offered and unit sizes at the market rate projects surveyed. Average Net Adjusted Rent Market Rent Prairie View (net rents) One bdrm one bath $ 547.00 $ 630.00 $ NA Two bdrm one bath $ 654.00 $ 784.00 $ NA Two bdrm two bath $ 904.00 $ 927.00 $ 432.00 - 650.00 Three bdrm two bath $ 953.00 $ 1,048.00 $ 558.00 - 750.00 Rent Gap The two bedroom two bath units at Prairie View will run from $ 277.00 to $ 495.00 or 30 % to 53 % below the net adjusted market rate for the Brookings area. The three bedroom two bath units will run from $ 298.00 to $ 490.00 or 28 % to 47 % under. Keep in mind that with these below market rents, the subject will include unit amenities that are superior to the majority of market rate projects in the area and in fact, are equal to the newer higher quality projects in Brookings. In addition, in general the project amenities at the subject, with the one exception (Innovation Village), are equal to existing projects in the area. _______________________________________________________ Property Dynamics Page A-14 ______________________________________________ January 2012 5. INCOME ELIGIBLE HOUSEHOLDS Calculation of Eligible Households For the purposes of this report we will calculate the number of eligible households based on income of 40, 50 & 60 % AMI. The proposed Prairie View apartment project to be located in Brookings, South Dakota will include thirty-one (31) tax credit units. The project will include the following unit mix. Rents listed are net: 2 - Two bedroom HOME/FMR @ 40 % of Median $ 432.00 2 - Two bedroom units FMR @ 50 % of Median $ 452.00 2 - Two bedroom units @ 50 % of Median $ 637.00 9 - Two bedroom units @ 60 % of Median $ 650.00 2 - Three bedroom HOME/FMR @ 40 % of Median $ 558.00 2 - Three bedroom units FMR @ 50 % of Median $ 662.00 2 - Three bedroom units @ 50 % of Median $ 732.00 10 - Three bedroom units @ 60 % of Median $ 750.00 31 - Total units 2012 - Income Limits Brookings County: Three Persons $ 24,120 - 40 % $ 30,150 - 50 % $ 36,180 - 60 % Five Persons $ 28,960 - 40 % $ 36,200 - 50 % $ 43,440 - 60 % Source: HUD - Effective 12-01 2011 Minimum For the calculation of the number of eligible households, we will consider that prospective residents will spend no more than 30 % of their income on housing. Two bedroom units @ 40 % = $ 432.00 divided by .30 x 12 months = $ 17,280 Two bedroom units @ 50 % = $ 452.00 divided by .30 x 12 months = $ 18,080 Two bedroom units @ 50 % = $ 637.00 divided by .30 x 12 months = $ 25,480 Two bedroom units @ 60 % = $ 650.00 divided by .30 x 12 months = $ 26,000 _______________________________________________________ Property Dynamics Page A-15 ______________________________________________ January 2012 Three bedroom units @ 40 % = $ 558.00 divided by .30 x 12 months = $ 22,320 Three bedroom units @ 50 % = $ 662.00 divided by .30 x 12 months = $ 26,480 Three bedroom units @ 50 % = $ 732.00 divided by .30 x 12 months = $ 29,280 Three bedroom units @ 60 % = $ 750.00 divided by .30 x 12 months = $ 30,000 Qualifying Ranges Technically, the only income limits established are maximums, however based on the proposed rents we have established our opinion about a minimum. As a result, our calculation of demand will be based on these ranges: We will adjust the range so calculate demand for the units with full rental assistance and those without. Two bedroom units @ 40 % = $ 17,280 to $ 24,120 (based on 3 persons @ 40 %) Two bedroom units @ 50 % = $ 18,080 to $ 30,150 (based on 3 persons @ 50 %) Two bedroom units @ 50 % = $ 25,480 to $ 30,150 (based on 3 persons @ 50 %) Two bedroom units @ 60 % = $ 26,000 to $ 36,180 (based on 3 persons @ 60 %) Three bedroom units @ 40 % = $ 22,320 to $ 28,960 (based on 5 persons @ 40 %) Three bedroom units @ 50 % = $ 26,480 to $ 36,200 (based on 5 persons @ 50 %) Three bedroom units @ 50 % = $ 29,280 to $ 36,200 (based on 5 persons @ 50 %) Three bedroom units @ 60 % = $ 30,000 to $ 43,440 (based on 5 persons @ 60 %) Determining the Number of Eligible Households Although some of the potential residents will come from outside the primary market area, we have asked Claritas/Ribbon Demographics to provide us with the number of households, for the primary market area, which we have previously mentioned, will be the City of Brookings. The data we have received is based on 2011 figures, with rents and income limits from 2012. Market Area Eligibility for Tax Credit Units: Step One - According to Claritas/Ribbon, in 2011 the total number of households in the primary market area was 7,716. Of the total households, 6,239 or 80.9 % were non-senior households with the remaining 1,477 or 19.1 % being senior (62+). Because this project includes only two and three bedroom units, we will calculate the number of eligible households using only non-seniors. _______________________________________________________ Property Dynamics Page A-16 ______________________________________________ January 2012 For the calculation of the two bedroom units at the subject, we will use only 2 & 3 person renter tenure households. According to Claritas/Ribbon, there are currently 1,422 non-senior renter tenure households with 2 - 3 persons. For the three bedroom units at the subject, we will use only 4 - 5 person households. In 2011, there were 412 households with 4 - 5 persons. So in total, there are currently 1,834, 2 to 5 renter tenure non-senior households in the market area. Note, for our calculations we have narrowed the income ranges so as to not double count households. Eligible Households By Bedroom Type: Eligibility for 2 - Two Bedroom HOME/FMR Units @ 40 % of Median: Monthly rent: $ 432.00 Income range: $ 17,280 - $ 24,120 Targeted group: Non-Senior Households Total 2 - 3 person renter tenure non-senior households in 2011: 1,422 Financially eligible: 15.333 % x 1,422 = 218 income eligible households So, 218 eligible non-senior households for the two (2) proposed two bedroom 40 % units at Prairies View Apartments *************************************************************************** Eligibility for 2 - Two Bedroom FMR Units @ 50 % of Median: Monthly rent: $ 452.00 Income range: $ 24,120 - $ 30,150 Targeted group: Non-Senior Households Total 2 - 3 person renter tenure non-senior households in 2011: 1,422 Financially eligible: 11.88 % x 1,422 = 169 income eligible households So, 169 eligible households for the two (2) proposed two bedroom FMR/50 % units at the Prairie View Apartments *************************************************************************** Eligibility for 2 - Two Bedroom Units @ 50 % of Median: Monthly rent: $ 637.00 Income range: $ 25,480 - $ 30,150 Targeted group: Non-Senior Households Total 2 - 3 person renter tenure non-senior households in 2011: 1.422 Financially eligible: 9.21 % x 1,422 = 131 income eligible households So, 131 eligible households for the two (2) proposed two bedroom 50 % units at Prairie View Apartments _______________________________________________________ Property Dynamics Page A-17 ______________________________________________ January 2012 Eligibility for 9 - Two Bedroom Units @ 60 % of Median: Monthly rent: $ 650.00 Income range: $ 30,150 - $ 36,180 Targeted group: Non-Senior Households Total 2 - 3 person renter tenure non-senior households in 2011: 1,422 Financially eligible: 9.35 % x 1,422 = 145 income eligible households So, 145 eligible households for the nine (9) proposed two bedroom 60 % units at Prairie View Apartments *************************************************************************** Eligibility for 2 - Three Bedroom HOME/FMR Units @ 40 % of Median: Monthly rent: $ 558.00 Income range: $ 22,320 - $ 28,960 Targeted group: Non-Senior Households Total 4-5 person renter tenure non-senior households in 2011: 412 Financially eligible: 10.68 % x 412 = 44 income eligible households So, 44 eligible households for the two (2) proposed three bedroom 40 % units at Prairie View Apartments *************************************************************************** Eligibility for 2 - Three Bedroom FMR 50 % units of Median: Monthly rent: $ 662.00 Income range: $ 28,960 - $ 36,200 Targeted group: Non-Senior Households Total 4 - 5 person renter tenure non-senior households in 2011: 412 Financially eligible: 21.60 % x 412 = 89 income eligible households So, 89 eligible non-senior households for the two (2) proposed FMR/50 % three bedroom units at Prairie View Apartments _______________________________________________________ Property Dynamics Page A-18 ______________________________________________ January 2012 Eligibility for 2 - Three Bedroom Units @ 50 % of Median: Monthly rent: $ 732.00 Income range: $ 29,280 - $ 36,200 Targeted group: Non-Senior Households Total 4 - 5 person renter tenure non-senior households in 2011: 412 Financially eligible: 21.11 % x 412 = 87 income eligible households So, 87 eligible non-senior households for the two (2) proposed three bedroom 50 % units at Prairie View Apartments *************************************************************************** Eligibility for 10 - Three Bedroom Units @ 60 % of Median: Monthly rent: $ 750.00 Income range: $ 36,200 - $ 43,440 Targeted group: Non-Senior Households Total 4 - 5 person renter tenure non-senior households in 2011: 412 Financially eligible: 14.81 % x 412 = 61 income eligible households So, 61 eligible non-senior households for the nine (9) proposed three bedroom 60 % units at Prairie View Apartments *************************************************************************** Summary of Eligible Households: Proposed Eligible Units Households Capture Rate Two bedroom units @ 40 % 2 191 1.05 % Two bedroom units @ 50 % 2 169 1.18 % Two bedroom units @ 50 % 2 131 1.53 % Two bedroom units @ 60 % 9 145 6.21 % Two bedroom total 15 505 2.97 % Three bedroom units @ 40 % 2 44 4.55 % Three bedroom units @ 50 % 2 89 2.25 % Three bedroom units @ 50 % 2 87 2.30 % Three bedroom units @ 60 % 10 61 16.39 % Total three bedroom units 16 194 8.25 % Total 31 699 4.33 % _______________________________________________________ Property Dynamics Page A-19 ______________________________________________ January 2012 Note about capture rate. When looking at the three bedroom capture rates, it is important to note that while we have used 4 - 5 households for our calculations, in many cases three person households would look at a three bedroom unit. That would be true of a single parent with a boy and a girl needing separate bedrooms. Household Projection Between 2011 and 2013 (estimated time of lease up), Ribbon has projected that the number of 2-5 renter households in the market area will increase by 16. Of those, they are projecting that 15 will be 4 - 5 person households with 1 being 2 - 3 person households. Market Rate Units For these units we have not made any calculations of eligible households as there is technically no minimum or maximum income levels. However, we do need to point out again that the vacancy rate at existing market rate projects is 1 % with very few rentals available in the City. That points to a very strong need in the community for additional units. As we have noted, the subject will include a very strong amenity package that will certainly be attractive to potential renters. In addition, its strong location near area services will also be another selling point. According to Brookings Community Development Director Mike Struck, there is currently just one apartment project in planning. That project is the second phase of Innovation Village and will include 64 new units. Although the project manager at phase I of this project mentioned that new rents have not yet been set, they will most likely be close to those at the existing project. It is our opinion that the subject’s eight market rate units would have no problem in leasing and will help fill a strong need in the Brookings area. We have listed below our estimates of market rents in the Brookings area. These rents take into account amenities, unit sizes and conditions at comparable projects. Net Adjusted Market Rent Two bdrm two bath $ 927.00 Three bdrm two bath $ 1,048.00 _______________________________________________________ Property Dynamics Page A-20 ______________________________________________ January 2012 6.PROJECTS IN PLANNING Projects in Planning According to the City of Brookings Community Development Director Mike Struck, there is currently just one project in planning, phase II of the Innovation Village apartments. This project will include 128 units and is located directly south of phase I across 10th Street. Ground work has started at the site with completion expected in early 2013. This project will include studio, one, two and three bedroom units. Mr. Struck noted that there are a “couple” projects which received approval from the City, but have had no activity in some time. Those may or may not be revived in the future when economic conditions improve. Building Permits Over the past ten years (2001 - 2010), the City of Brookings has issued permits for 1,629 new residential units, an annual average of 163. Of the total permits issued, 886 or 54 % were single family with the remaining 743 or 46 % being multi-family units. Since 2001 the City has averaged 74 new multi-family units built per year, but just 6 were built in 2010. The number of single family homes permitted in the City dropped in 2010 with 75, down from the decade high of 114 in 2009. Through November 2011, the City has permitted another 61 single family homes and 34 multi-family units, for a total of 75 residential units permitted. _______________________________________________________ Property Dynamics Page A-21 ______________________________________________ January 2012 7. MARKET AREA DEMOGRAPHICS Market Area - City of Brookings We have asked Claritas/Ribbon Demographics to provide us with the latest demographic data on the defined market area, which we have previously mentioned is the City of Brookings. In 2011, Claritas has estimated the market area population at 20,184, an increase of 1,680 or 9.1 % or 0.8 % annually from the 2000 Census figure of 18,504. By comparison, between 1990 and 2000 the market area population increased by 2,179 or 13.3 % or 1.3 % per year on average. We should note that the Claritas 2011 estimates area not based on 2010 Census data. In fact, their 2011 estimated population for the City is 1,872 or 8.5 % under the 2010 Census figure of 22,056. Because of that, the Claritas figures will be conservative. Claritas has projected that between 2011 and 2016, the population of the market area will continue to increase, although at a slightly lower annual average than occurred between 2000 and 2011. They are projecting a 2016 population of 20,826, an increase of 642 or 3.2 %, a 0.6 % annual average rate of growth. In the market area in 2011, 17.6 % of the population were under age of 18, while 36.7 % were age 18 - 24 (not unusual for a college town), 19.7 % were 55 years of age or older and 12.3 % were age 65+. The median age for the market area in 2011 was a young 24.1. By race, 93.2 % were White, 1.2 % American Indian, 0.3 % were listed as Other Race, 1.1 % were of Two or More Races and 1.1 % were of Hispanic origin. We have included later in this report a “Market Area Profile” with more detailed information, as well as a map showing the market area. Brookings County Brookings County is located in the extreme east-central part of South Dakota and in 2010 was the State’s 5th most populous county. In 2010, the U.S. Census Bureau population for the County was 31,965, an increase of 6,758 or 26.8 % from the 1990 Census total of 25,207. During the 1990's, the annual rate growth in the County was 1.2 %, with its population increasing by 3,013 or 12.0 %. Growth in the County has increased over the past ten years with its population growing by 3,745 or 13.3, a 1.3 % annual average increase. _______________________________________________________ Property Dynamics Page A-22 ______________________________________________ January 2012 MARKET AREA PROFILE - CITY OF BROOKINGS Population: Change % Change 1990 (Census) 16,325 2000 (Census) 18,504 2,179 13.3 % 2011 (Estimate) 20,184 1,680 9.1 % 2016 (Projection) 20,826 642 3.2 % Population by Race: 2000 2011 2016 White 95.5 % 93.2 % 92.1 % Black 0.4 % 0.8 % 1.0 % American Indian 1.0 % 1.2 % 1.3 % Asian 1.9 % 3.3 % 3.9 % Native Hawaiian & Pacific Isl. 0.1 % 0.1 % 0.1 % Other Race 2.6 % 0.3 % 0.4 % Two or More Races 0.9 % 1.1 % 1.2 % Hispanic Ancestry 0.8 % 1.1 % 1.2 % Population by Age: 0 - 17 17.4 % 17.6 % 18.2 % 18 - 24 36.6 % 36.7 % 34.1 % 25 - 34 11.9 % 12.1 % 13.5 % 35 - 44 10.1 % 8.4 % 8.8 % 45 - 54 8.8 % 8.3 % 7.9 % 55 - 64 5.3 % 7.4 % 7.9 % 65 - 74 4.0 % 7.1 % 4.9 % 75 & Older 5.9 % 5.2 % 4.9 % Total 100.0 % 100.0 % 100.0 % Median Age 24.2 24.1 24.5 Average Age 32.1 32.2 32.5 Households: Change % of Change 1990 (Census)5,705 2000 (Census)6,971 1,266 22.2 % 2011 (Estimate)7,716 745 10.7 % 2016 (Projection)7,955 239 3.1 % 2000 2011 2016 Average Household Size - 2.26 2.21 2.20 2011 2016 Non-Senior Households - 6,239 80.9 % 6,368 80.1 % Senior (62+) Households - 1,477 19.1 % 1,587 19.9 % 7,716 100.0 % 7,955 100.0 %_______________________________________________________ Property Dynamics Page A-23 ______________________________________________ January 2012 2011 % Households With 1 person 35.4 % With 2 persons 32.6 % With 3 persons 15.5 % With 4 persons 11.1 % With 5 persons 3.9 % With 6 persons 1.2 % With 7+ persons 0.3 % 2011 Housing Units: Total Housing Units 8,346 -100.0 % Occupied Housing Units 7,716 - 92.5 % Owner Occupied 3,728 - 48.3 % Renter Occupied 3,988 - 51.7 % Vacant units 630 - 7.5 % 2011 - Units in Structure: One unit detached 43.6 % One unit attached 6.6 % Two units 3.9 % Three - Four 3.6 % Five - Nineteen 22.6 % Twenty - Forty-nine 9.4 % Fifty or more 0.8 % Mobile Homes 10.2 % Other 0.0 % Household Income: 2000 2011 2016 $ 0 - $ 14,999 1,648 23.7 % 1,392 18.0 % 1,394 17.5 % $ 15,000 - $ 24,999 1,119 16.1 % 1,142 14.8 % 1,158 14.6 % $ 25,000 - $ 34,999 1,046 15.0 % 1,053 13.7 % 1,062 13.4 % $ 35,000 - $ 49,999 1,107 15.9 % 1,150 14.9 % 1,188 14.9 % $ 50,000 - $ 74,999 1,083 15.5 % 1,453 18.8 % 1,502 18.9 % $ 75,000 - $ 99,999 582 8.4 % 730 9.5 % 767 9.6 % $ 100,000 + 383 5.5 % 796 10.3 % 884 11.1 % 6,968 100.0 % 7,716 100.0 % 7,955 100.0 % Median Household Income $ 31,855 $ 38,535 $ 39,590 Average Household Income $ 42,936 $ 50,981 $ 52,353 Source: Claritas 12/19/11 _______________________________________________________ Property Dynamics Page A-24 ______________________________________________ January 2012 Market Area Renter Households by Household Size - 2011 Under 62 Households 2-Persons 3 -Persons 4 Persons 5 Persons $ 0 - 10,000 166 30 23 5 $ 10,000 - 20,000 250 130 23 14 $ 20,000 - 30,000 172 108 57 10 $ 30,000 - 40,000 168 72 111 21 $ 40,000 - 50,000 86 53 31 1 $ 50,000 - 60,000 7 25 0 27 $ 60,000+ 52 103 39 50 Totals 901 521 284 128 Renter Households by Household Size - 2013* Under 62 Households 2-Persons 3-Persons 4-Person 5 Persons $ 0 - 10,000 163 30 24 5 $ 10,000 - 20,000 245 130 23 14 $ 20,000 - 30,000 170 111 58 10 $ 30,000 - 40,000 167 73 114 21 $ 40,000 - 50,000 87 55 32 1 $ 50,000 - 60,000 7 25 0 27 $ 60,000+ 52 108 42 55 Totals 891 532 294 133 For the 2013 figures, we have simply pro-rated the difference between the 2011 and 2016 Renter Households by Household Size - 2016 Under 62 Households 2-Persons 3 -Persons 4 Persons 5 Persons $ 0 - 10,000 158 31 26 6 $ 10,000 - 20,000 238 130 24 14 $ 20,000 - 30,000 167 115 59 9 $ 30,000 - 40,000 165 75 119 22 $ 40,000 - 50,000 88 58 33 2 $ 50,000 - 60,000 8 26 0 28 $ 60,000+ 53 116 47 59 Totals 877 547 308 140 Ribbon Demographics only has a breakdown to 5+ person households. For the 5 person households, we used the percentage (62.9%) from the 2000 Census (Summary Tape 3- Table H17 - Tenure by Household Size) with the Ribbon 5+ figures. Source: Ribbon Demographics _______________________________________________________ Property Dynamics Page A-25 ______________________________________________ January 2012 Brookings, SDArea MapPlace See Appendix for Geographiesof© 2006-2011 TomTomPrepared By: © 2011 The Nielsen Company. All rights reserved.Nielsen Solution Center 1 800 866 651121PageMon Dec 19, 2011Prepared For: Property DynamicsProject Code: Brookings, SDPrepared on:_______________________________________________________ Property Dynamics Page A-26 ______________________________________________ January 2012 8. ECONOMIC OVERVIEW Major employers in the Brookings area include the South Dakota State University, Daktronics, 3M, Larson Manufacturing, Fishback Financial Corp., Hy-vee, Wal-Mart, Brookings Health System and Brookings School District. Overall, with major employers like the University & Daktronics, economic conditions in the area have, and should continue to remain fairly stable into the future. According to the South Dakota Department of Labor, total employment in Brookings County (Brookings MiSA) increased by 1,495 or 16.8 % over the past ten years, from 16,515 in 2001 to 18,010 in 2010 (all annual averages), an annual average increase of 0.9 %. Employment in the County increased every year between 2002 and 2007, before a small drop of 0.8 % in 2008, and then a much larger decrease of 4.5 % in 2009. Between 2009 and 2010, employment again decreased, although by a much small rate of 1.2 %. For the City of Brookings, employment increased between 2006 to 2007, before dropping by 5.5 % from 2007 to 2010, although again the loss between 2009 and 2010 was much smaller than in the previous year (2008 - 2009). The latest monthly figure available for Brookings County employment is from November 2011, which showed total employment at 18,875, an increase of 215 or 1.2 % when compared to the November 2010 figure of 18,660. For the City, employment was also up when comparing the latest monthly figures, increasing by 150 or 1.2 %. Those are very good signs of improving economic conditions in the City. The unemployment rate in the County remained very steady between 2001 and 2008, ranging from a low of 2.2 % to a high of 3.0 %. However, the rate did climb to 3.8 % in 2009 and to 4.1 in 2010. Between 2001 and 2010 the County unemployment rate averaged a very low 3.0 %, and compared to 3.6 % for the State over the same period. In the City of Brookings, the 2010 annual average unemployment rate was at 4.2 %, up from 3.8 % in 2009. Again, the latest figure available is from November 2011, which showed a rate of 3.2 % for the City, down from 3.6 % in November 2010. In the County, the rate dropped from 3.6 % in November 2010, to 3.1 % in November 2011 The largest sector employer in the County in 2010 was Accommodation and Food Services which made up 23 % of all employment in the County. Government was second at 15 % followed by Retail Trade at 12 %. Together those three made up 50 % of total employment. _______________________________________________________ Property Dynamics Page A-27 ______________________________________________ January 2012 We should also note that the largest, Accommodation and Food Services, is among the lowest paying sectors and would include incomes that would fit the subject’s pre-determined levels. Since 2001, the largest increase in sector employment was again Accommodation and Food Services, which increased by 884 or 51.5 %, followed by Financial and Insurance with an increase of 275 and Health Care/Social services with an increase of 217. Overall, we would rate economic conditions in the County as fair but improving. While total employment in both the County & City dropped over the past three years, it was up by 1.2 % between November 2010 and November 2011. In addition, over the past 12 months (November 2010 to November 2011), the unemployment rate was down after three years of increases’s. _______________________________________________________ Property Dynamics Page A-28 ______________________________________________ January 2012 9. EXISTING & PROJECTED HOUSEHOLDS Households According to Ribbon Demographics, in 2011 there were a total of 7,716 households in the market area, an increase of 745 or 10.7 % from the 2000 Census total of 6,971, an annual average increase of 68 households or 1.0 %. By comparison, between 1990 and 2000 the number of households increased by 127 or 2.2 % households per year on average. Of the total households in the market area in 2011, 6,239 or 80.9 % were non-senior, with the remaining 1,477 or 19.1 % being senior (62+). In 2011 renter tenure for the market area was 51.7 %, but for non-senior households was 54.1 %. So: 54.1 % x 6,239 (total non-senior households) = 3,375 total existing non-senior households with renter tenure. Ribbon has projected that by the year 2016 the total number of households will grow to 7,955, an increase of 239 or 3.1 % from the 2011 estimate, or an annual average increase of 48 new households. Of those new households, Ribbon is projecting that 129 or 26 annually will be non-senior. Of those, 40 or 8 per year on average will be renter tenure. That would mean an increase of 16 age eligible renter tenure households entering the market area between 2011 and 2013 (project opening). Persons per Household Brookings County - 2.36 (from 2010 - Census) Brookings - 2.29 (from 2010 - Census) Sub-standard and Rent Overburden Housing Units - Census City of Brookings Renter units lacking complete plumbing facilities - 15 or 0.4 % Renter units lacking complete kitchen facilities - 66 or 1.7 % Renter Over Crowded - More than 1.01 persons per room - 34or 0.9 % Rent Overburden - paying more than 30 % of Household income to rent - 1,273 or 34.2 % Source: U.S. Census - American Community Survey (3 year & 5 year estimates) _______________________________________________________ Property Dynamics Page A-29 ______________________________________________ January 2012 10. EXISTING HOUSING CONDITION Housing Units According to the U.S. Census Bureau, the City of Brookings had 8,715 total housing units as of April 2010, an increase of 1,344 housing units or 18.2 % from the 2000 total of 7,371. Using building permit data from the City/Census, we have determined that as of November 2011, there are approximately 8,854 total housing units in the City. The average age of housing in Brookings is mixed, with almost 66 % of all units being built after 1970, with 35 % being built after 1990 and 17 % since 2000. Conversely, 24 % were built prior 1960, with 11.6 % prior to 1940. In the primary market area in 2011 there were 8,346 total housing units, an increase of 987 or 13.4 % from the 2000 total. Of the total housing units, 7,716 or 92.5 % units are occupied, with 48.3 % owner occupied, and with 51.7 % being renter tenure. Additionally, 630 or 7.5 % of housing units are “vacant”. These include seasonal units. Of the total housing units in the City, 4,137 or 50.2 % were single family (one unit attached or detached), 321 units or 3.9 % of the total were duplexes, with 3,039 units or 36.4 % with 3 or more units and 849 units or 10.2 % were mobile homes. As noted earlier, the current vacancy rate in the Brookings area is very low, at 0.76 % (all projects surveyed - market rate, tax credit and low income), with a 5 % vacancy rate considered “average”. The vacancy rate for eleven market rate apartments was at 1.0 % with just eight total vacancies found out of 782 units surveyed. For the three family tax credit projects the rate is at 0.0 % with all three of the existing project being fully occupied. Again, while we have not included specific information of the five government subsidized projects with 185 unit, all were fully occupied. Since 2001, the City has added 743 new multi-family units with just 60 of those being income restricted. With a growing student enrollment at the College, the area could definitely use additional market rate or student housing. As for affordable rentals we have projected a need for 133 units to meet the needs of 2 - 5 person households with incomes at 40 - 60 % of the area median income. _______________________________________________________ Property Dynamics Page A-30 ______________________________________________ January 2012 DEMAND ESTIMATE 31 - ALL TAX CREDIT UNITS Rents $ 362.00 - 706.00 DEMAND FROM EXISTING HOUSEHOLDS: 1. Number of existing non-senior households for 2011 in market area 6,239 2. Number of renters - 54.10 % x 6,239 = 3,375 3. Number of appropriate sized households: 54.34 % (2- person) x 3,375 = 1,834 4. Number of income qualified renters 38.11 % x 1,834 = 699 ($ 17,280 - $ 43,440) 5. Movership or turnover rate - 31.1 % (Geographic Mobility 217 for South Dakota for renter tenure households- U.S. Bureau of Census) 6. Estimated annual demand from existing rental households 217 DEMAND FROM NEW HOUSEHOLDS: The figures above represent the total number of existing qualified households. If we look only at new demand from growth, we will use projected new households who will move into the market area by 2013. Demand from New Households for Tax Credit Units: 1. Estimate the number of new, additional non-senior renter households by the time the project enters the market 16 2. Estimate the annual growth. This is the number of new households divided by the number of years between the current household number and the market entry number. 16 ÷ 2 = 8 3. Number of income qualified households - 38.11 % (percentage of households that fall into the predetermined income range - see Calculation of Eligible Households). So 38.11 % x 8 = 3 4. Estimated annual demand from new households 3 Total annual demand from existing and new renter households: 217 + 3 = 220 _______________________________________________________ Property Dynamics Page A-31 ______________________________________________ January 2012 So by 2013 we have determined that will be a need for 217 units to meet the needs of households at 40, 50 & 60 % of the area median income. At the present time, there are 84 units serving that population. If we deduct those units from the demand (217-84= 133), we have determined that the area could use 133 additional units to adequately serve that population (2 - 5 person households with incomes between $ 17,280 and $ 43,440). _______________________________________________________ Property Dynamics Page A-32 ______________________________________________ January 2012 11. HOUSING AUTHORITY - SECTION 8 VOUCHERS According to Nyla Smith, Program Specialist with the Brookings County Housing and Redevelopment, they currently have 342 Section 8 Vouchers with 80 currently available with no wait list. Ms. Smith felt that there was a strong need in the County, and in Brookings, for affordable rental units and commented that she was very supportive of this new project. Note: There are no public housing units in Brookings County 12. MEETING CORRESPONDENCES We contacted by phone several persons in the area to determination of the overall need for the proposed project. Brookings City Community Development Director Mike Struck, Nyla Smith with the Brookings County Housing and Redevelopment Commission, Ryan Brunner, project Coordinator with the Brookings Economic Development Corporation and managers of the three existing family tax credit apartment projects in Brookings. All of these individuals expressed support for a new affordable project in the area. The managers at existing projects all commented that in addition to their wait lists, they receive inquiries on a daily basis from persons who are looking for a unit, but who are typically in immediate need and in most cases choose not to be put on a wait list. None of these managers felt a new project would have any real affect and all expressed support for this new development. As noted above, Ms. Smith with the Housing Authority also was supportive of a new project and commented that one of the reasons they have vouchers available was due to the lack of housing. Mr. Brunner with Economic Development also felt that there was a severe shortage of housing in the area, especially affordable rentals. He felt that there was a strong need in the Brookings area for the type of units that will be available at Prairie View. Overall, all of these individuals expressed their support for a new family project in Brookings. _______________________________________________________ Property Dynamics Page A-33 ______________________________________________ January 2012 13. EXECUTIVE SUMMARY We have looked at several factors in determining the success of the proposed forty (40) unit Prairie View apartment project located in Brookings South Dakota. 1. Project Site - We would rate the proposed site as very good as it relates to a low income family apartment project. Most essential services are located within one mile of the site, including schools (middle and intermediate), a large grocery store with a pharmacy & bank, a small shopping mall including a J.C. Penney store and the Boys and Girls Club. 2. Between 2000 and 2010 the population of Brookings County has increased by 3,745 or 13.3 %, ranking the County 4th in the State in overall population increase and 5th by percentage increase. Keep in mind that the County ranks 5th in overall population in 2010. 3. The 2010 Census population for Brookings was 22,056 making it the State’s fourth largest City. Between 2000 and 2010, the City of Brookings population increased by 5,786 or 35.6 % since 1990, with the majority of that growth occurring between 2000 and 2010 (3,552 or 19.2 %). The annual average increase over the past decade was 1.92 % and compared to 1.37 % between 1990 and 2000. Between 2000 and 2010, Brookings was the State’s 4th fastest growing city (in overall population growth)and ranked 9th by percentage increase among cities in the State with a population of over 3,000. 4. The market area, which we have determined to be the entire City of Brookings, had a 2011 estimated population of 20,184 (from Claritas), an increase of 1,680 or 9.1 % or 0.8 % annually from the 2000 Census figure. That increase came after growth of 1.3 % annually between 1990 and 2000. Claritas has projected that the population of the market area will continue to increase through 2016, although at a slightly slower annual rate of 0.6 %. We should again note that the 2011 estimate from Claritas was 8.5 % under the official 2010 Census population for the City. 5. At the present time in the market area there are 7,716 total households of which, 6,239 or 80.9 % are non-senior. Renter tenure for non-seniors in the market area in 2011 was 54.10 %. So, 54.10 % x 6,239 = 3,375 renter tenure non-senior households in the market area in 2011. Claritas has projected that an additional 129 non-senior households will enter the market area between 2011 and 2016 of which 40 will be renter tenure, an annual average increase of 8. _______________________________________________________ Property Dynamics Page A-34 ______________________________________________ January 2012 6. The average age of housing in Brookings is newer on average with 66 % of the units being built after 1970 and 35 % since to 1990. Overcrowded housing of renter units (more than 1.01 persons per room) made up just 0.9 % of the total, while just 15 units lacked complete plumbing and 66 lacked complete kitchen facilities. In addition, a high 34.2 % of renter households in Brookings paid more than 30 % of their income towards rent, according to the U.S. Census Bureau. 7. In our (Property Dynamics) apartment survey of nineteen (19) projects and 1,051 units, we found eight vacancies for a 0.76 % vacancy rate. As noted, we were not able to find any historical vacancy information for the City. The three family tax credit projects surveyed was 100 % occupied as were the five low income government subsidized communities. The vacancy rate for the ten market rate projects surveyed was 1.0 %. 8. Market rents for two bedroom two bath units in Brookings are $ 927.00 and $ 1,048.00 for three bedroom units. Those figures range from 28 - 53 % above the proposed rents at Prairie View Apartments. 9. Overall, we would rate economic conditions in the County as fair but improving. While total employment in both the County & City dropped over the past three years, it was up by 1.2 % between November 2010 and November 2011. In addition, over the past 12 months (November 2010 to November 2011), the unemployment rate was down after three years of increases. 10. We have determined that in 2011, there are 699 households in the market area that meet income and tenure eligibility for the project’s 31 tax credit units, a good capture rate of 4.43 %. In our “Annual Demand Estimate” we have determined that there is an annual need for 217 units in the market area to serve the need of non-senior households between 40 & 60 % AMI and 2 & 3 bedroom units. With 84 existing units to serve that market, there would be a need for an additional 133 two & three bedroom units in the market area. 11. Target Population - The proposed project will target non-senior households in the market area with incomes at 40, 50 & 60 % of the area median income. _______________________________________________________ Property Dynamics Page A-35 ______________________________________________ January 2012 As for rehabilitation of existing housing, we do not feel that is a viable option. One of the biggest needs in the area is for larger three bedroom units, of which there are very few in the market area. With all of the growth in the area, a new project is warranted, and we feel that the subject will fill a strong need in the community, as a new construction apartment project. Also as we have noted, with a vacancy rate at 1 %, there is a strong need for additional market rate apartments. While an additional 128 units have just started construction, those units are the second phase of an existing project which includes the highest rents in the City. Absorption We unfortunately do not have the luxury of comparing the subject to the lease-up of a similar project in the market area. The last, and only family tax credit project to open, were the 60 units South Briar and Green Briar Apartments which opened in 2000. However, in looking at all of the factors in this report, it is our opinion that the subject will lease at a rate of 18 - 20 units per month and should reach stable occupancy within two months after opening. Effect on Existing Market In our discussions with area managers of income restricted projects, and taking into account its location, we do not feel that the subject will have any real effect on existing competitive projects in the market area. The subject may have a small effect on older market rate projects with lower rent levels, as persons living in those communities may choose to move to this newly built complex, as it will include amenities that would be far superior to those projects. In addition, just over 34 % of renter households in the City are rent over-burdened. Those households would be a prime target for this proposed project. _______________________________________________________ Property Dynamics Page A-36 ______________________________________________ January 2012 SECTION B POPULATION AND HOUSING STATE OF SOUTH DAKOTA COUNTIES POPULATION 1990, 2000 & 2010 1990 2000 2010 County Population Population Population Change % Change Change % Change Aurora County 3,135 3,058 2,710 (77) -2.5% (348) -11.4% Beadle County 18,253 17,023 17,398 (1,230) -6.7% 375 2.2% Bennett County 3,206 3,574 3,431 368 11.5% (143) -4.0% Bon Homme County 7,089 7,260 7,070 171 2.4% (190) -2.6% Brookings County 25,207 28,220 31,965 3,013 12.0% 3,745 13.3% Brown County 35,580 35,460 36,531 (120) -0.3% 1,071 3.0% Brule County 5,485 5,364 5,255 (121) -2.2% (109) -2.0% Buffalo County 1,759 2,032 1,912 273 15.5% (120) -5.9% Butte County 7,914 9,094 10,110 1,180 14.9% 1,016 11.2% Campbell County 1,965 1,782 1,466 (183) -9.3% (316) -17.7% Charles Mix County 9,131 9,350 9,129 219 2.4% (221) -2.4% Clark County 4,403 4,143 3,691 (260) -5.9% (452) -10.9% Clay County 13,186 13,537 13,864 351 2.7% 327 2.4% Codington County 22,698 25,897 27,227 3,199 14.1% 1,330 5.1% Corson County 4,195 4,181 4,050 (14) -0.3% (131) -3.1% Custer County 9,176 7,275 8,216 (1,901) -20.7% 941 12.9% Davison County 17,503 18,741 19,504 1,238 7.1% 763 4.1% Day County 6,978 6,267 5,710 (711) -10.2% (557) -8.9% Deuel County 4,522 4,498 4,364 (24) -0.5% (134) -3.0% Dewey County 5,523 5,972 5,301 449 8.1% (671) -11.2% Douglas County 3,746 3,458 3,002 (288) -7.7% (456) -13.2% Edmunds County 4,356 4,367 4,071 11 0.3% (296) -6.8% Fall River County 7,353 7,453 794 100 1.4% (6,659) -89.3% Faulk County 2,744 2,640 2,364 (104) -3.8% (276) -10.5% Grant County 8,372 7,847 7,356 (525) -6.3% (491) -6.3% Gregory County 5,359 4,792 4,271 (567) -10.6% (521) -10.9% Haakon County 2,624 2,196 1,937 (428) -16.3% (259) -11.8% Hamlin County 4,974 5,540 5,903 566 11.4% 363 6.6% Hand County 4,272 3,741 3,431 (531) -12.4% (310) -8.3% Hanson County 2,994 3,139 3,331 145 4.8% 192 6.1% Harding County 169 1,353 1,255 1,184 700.6% (98) -7.2% Hughes County 14,817 16,481 17,022 1,664 11.2% 541 3.3% Hutchinson County 8,262 8,075 7,343 (187) -2.3% (732) -9.1% Hyde County 1,696 1,671 1,420 (25) -1.5% (251) -15.0% Jackson County 2,811 2,930 3,031 119 4.2% 101 3.4% Jerauld County 2,425 2,295 2,071 (130) -5.4% (224) -9.8% Jones County 1,324 1,193 1,006 (131) -9.9% (187) -15.7% Kingsbury County 5,925 5,815 5,148 (110) -1.9% (667) -11.5% Lake County 10,550 11,276 11,200 726 6.9% (76) -0.7% 2000 - 20101990 - 2000 _______________________________________________________ Property Dynamics Page B-1 ______________________________________________ January 2012 1990 2000 2010 County Population Population Population Change % Change Change % Change Lawrence County 20,655 21,802 24,097 1,147 5.6% 2,295 10.5% Lincoln County 15,427 24,131 44,828 8,704 56.4% 20,697 85.8% Lyman County 3,638 3,895 3,755 257 7.1% (140) -3.6% McCook County 5,688 5,832 5,618 144 2.5% (214) -3.7% McPherson County 3,228 2,904 2,459 (324) -10.0% (445) -15.3% Marshall County 4,844 4,576 4,656 (268) -5.5% 80 1.7% Meade County 21,878 24,253 25,434 2,375 10.9% 1,181 4.9% Mellette County 2,137 2,083 2,048 (54) -2.5% (35) -1.7% Miner County 3,272 2,884 2,389 (388) -11.9% (495) -17.2% Minnehaha County 123,809 148,281 169,468 24,472 19.8% 21,187 14.3% Moody County 6,507 6,595 6,486 88 1.4% (109) -1.7% Pennington County 81,343 88,565 100,948 7,222 8.9% 12,383 14.0% Perkins County 3,923 3,363 2,982 (560) -14.3% (381) -11.3% Potter County 3,190 2,693 2,329 (497) -15.6% (364) -13.5% Roberts County 9,914 10,016 10,149 102 1.0% 133 1.3% Sanborn County 2,833 2,675 2,355 (158) -5.6% (320) -12.0% Shannon County 9,902 12,466 13,586 2,564 25.9% 1,120 9.0% Spink County 7,981 7,454 6,415 (527) -6.6% (1,039) -13.9% Stanley County 2,453 2,772 2,966 319 13.0% 194 7.0% Sully County 1,589 1,556 1,373 (33) -2.1% (183) -11.8% Todd County 8,352 9,050 9,612 698 8.4%562 6.2% Tripp County 6,924 6,430 5,644 -494 -7.1% (786) -12.2% Turner County 8,576 8,849 8,347 273 3.2% (502) -5.7% Union County 10,189 12,584 14,399 2395 23.5% 1,815 14.4% Walworth County 6,087 5,974 5,438 -113 -1.9% (536) -9.0% Yankton County 19,252 21,652 22,438 2400 12.5% 786 3.6% Ziebach County 2,220 2,519 2,801 299 13.5% 282 11.2% South Dakota 696,004 754,844 814,180 58,840 8.5% 59,336 7.9% 1990 - 2000 2000 - 2010 _______________________________________________________ Property Dynamics Page B-2 ______________________________________________ January 2012 22000 24000 26000 28000 30000 32000 POPULATION1990 2000 2010 YEAR BROOKINGS COUNTY POPULATION 1990 - 2010 BROOKINGS COUNTY HISTORICAL POPULATION 1990 - 2010 Year Population 1990 (Census)25,207 2000 (Census)28,220 2010 (Census)31,965 Between 1990 and 2000 the population increased by 3,013 or 12.0 % Between 2000 and 2009 the population increased by 3,745 or 13.3 % Source: U.S. Census Bureau _______________________________________________________ Property Dynamics Page B-3 ______________________________________________ January 2012 STATE OF SOUTH DAKOTA CITIES OVER 3,000 POPULATION 1990, 2000 & 2010 1990 2000 2010 County Population Population Population Change % Change Change % Change Sioux Falls 100,814 123,975 153,888 23,161 23.0% 29,913 24.1% Rapid City 54,523 59,607 67,956 5,084 9.3% 8,349 14.0% Aberdeen 24,927 24,658 26,091 (269) -1.1% 1,433 5.8% Brookings 16,270 18,504 22,056 2,234 13.7% 3,552 19.2% Watertown 17,592 20,237 21,482 2,645 15.0% 1,245 6.2% Mitchell 13,798 14,558 15,254 760 5.5% 696 4.8% Yankton 12,703 13,528 14,454 825 6.5% 926 6.8% Pierre 12,906 13,876 13,646 970 7.5% (230) -1.7% Huron 12,448 11,893 12,592 (555) -4.5% 699 5.9% Vermillion 10,034 9,765 10,571 (269) -2.7% 806 8.3% Spearfish 6,966 8,606 10,494 1,640 23.5% 1,888 21.9% Brandon 3,543 5,693 8,785 2,150 60.7% 3,092 54.3% Box Elder 2,680 2,811 7,800 131 4.9% 4,989 177.5% Sturgis 5,330 6,442 6,627 1,112 20.9% 185 2.9% Madison 6,257 6,540 6,474 283 4.5% (66) -1.0% Belle Fourche 4,335 4,565 5,594 230 5.3% 1,029 22.5% Harrisburg 727 958 4,089 231 31.8% 3,131 326.8% Tea 786 1,742 3,806 956 121.6% 2,064 118.5% Hot Springs 4,325 4,129 3,711 (196) -4.5% (418) -10.1% Dell Rapids 2,484 2,980 3,633 496 20.0% 653 21.9% Mobridge 3,768 3,574 3,465 (194) -5.1% (109) -3.0% Milbank 3,879 3,640 3,353 (239) -6.2% (287) -7.9% Lead 3,632 3,027 3,124 (605) -16.7% 97 3.2% Canton 2,787 3,110 3,057 323 11.6% (53) -1.7% 2000 - 20101990 - 2000 _______________________________________________________ Property Dynamics Page B-4 ______________________________________________ January 2012 14000 16000 18000 20000 22000 24000 POPULATION1990 2000 2010 YEAR CITY OF BROOKINGS POPULATION 1990 - 2010 CITY OF BROOKINGS HISTORICAL POPULATION 1990 - 2010 Year Population 1990 (Census)16,270 2000 (Census)18,504 2010 (Census)22,056 Between 1990 and 2000 the population increased by 2,234 or 13.7 % Between 2000 and 2010 the population increased by 3,552 or 19.2 % Source: U.S. Census Bureau _______________________________________________________ Property Dynamics Page B-5 ______________________________________________ January 2012 0 50 100 150 200 250 300 350 PERMITS2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YEAR SINGLE FAMILY MULTI-FAMILY TOTAL CITY OF BROOKINGS BUILDING PERMITS 2001 - NOV. 2011 CITY OF BROOKINGS BUILDING PERMITS 2001 - 2011 Year Single Family Multi-Family Total 2001 56 6 62 2002 77 52 129 2003 50 68 118 2004 102 36 138 2005 104 88 192 2006 106 34 140 2007 113 111 224 2008 89 141 230 2009 114 201 315 2010 75 6 81 Total 886 743 1,629 2011 *61 34 75 * Through November Permits by Type 2001-2010 Single Family 886 - 54.4 % Multi-Family 743 - 45.6 % 1,629 - 100.0 % Source: 2001-2010 from City of Brookings Building Department, 2011 from Census _______________________________________________________ Property Dynamics Page B-6 ______________________________________________ January 2012 HOUSING CHARACTERISTICS - CITY OF BROOKINGS, SOUTH DAKOTA AGE OF STRUCTURES: Year Structure Built Units % of Total 04/10 - 11/2011 139 1.6 % 04/00 - 03/2010 1,344 15.2 % 1990 - 03/00 1,628 18.4 % 1980 - 1989 1,088 12.3 % 1970 - 1979 1,624 18.3 % 1960 - 1969 904 10.2 % 1940 - 1959 1,098 12.4 % 1939 or earlier 1,029 11.6 % 8,854 100.0 % Source: 2000 U.S. Census Bureau - Table DP-4, 04/00 - 03/10 housing units: 2010 Census 04/10 - 11/11 Housing Units: Building Permits from City of Brookings, Census RENTER SELECTED CHARACTERISTICS: Lacking complete plumbing facilities - 15 Lacking complete kitchen facilities - 66 RENTER OCCUPANTS PER ROOM: 1.00 or less 3,856 - 99.1 % 1.01 to 1.50 34 - 0.9 % 1.51 or more 0 - 0.0 % Occupied Housing Units 3,890 - 100.0 % U.S. Census Bureau - 2006-2010 American Community Survey (5-Year Estimates) GROSS RENT AS A PERCENTAGE OF HOUSEHOLD INCOME: Percent Paid Units % Total Less than 20 percent 1,368 36.7 % 20 - 24.9 percent 613 16.4 % 25 - 29.9 percent 348 9.3 % 30 - 34.9 percent 282 7.6 % 35 percent or more 991 26.6 % Not computed 127 3.4 % Total 3,729 100.0 % U.S. Census Bureau - 2009-2010 American Community Survey (3-Year Estimates) _______________________________________________________ Property Dynamics Page B-7 ______________________________________________ January 2012 HOUSING CHARACTERISTICS - CITY OF BROOKINGS CONTINUED RENTER TENURE BY HOUSEHOLD SIZE Bedroom Type Number % of Total One Person 2,034 54.6 % Two Person 897 24.1 % Three Person 387 10.4 % Four Person 325 8.7 % Five Person 0 0.0 % Six Person 82 2.2 % Seven or More 0 0.0 % Total 3,725 100.0 % RENTER TENURE BY NUMBER OF BEDROOMS Bedroom Type Number % of Total No Bedroom 161 4.3 % One Bedroom 781 21.0 % Two Bedroom 1,639 44.0 % Three Bedroom 748 20.1 % Four Bedroom 342 9.2 % Five or More 54 1.4 % Total 3,725 100.0 % Source: U.S. Census Bureau 2009-2010 American Community Survey (3-Year Estimates) _______________________________________________________ Property Dynamics Page B-8 ______________________________________________ January 2012 SECTION C APARTMENT RENTAL SURVEY SUMMARY OF BROOKINGS AREA APARTMENTS SURVEYED - DECEMBER 2011Market Rate Projects: Two Bdrm Two Bdrm Three Bdrm UnitsVacOne BdrmOne BathTwo BathTwo Bath1. Campus View 88 0$ 630.00$ 855.002. Cedar West 40 2$ 620.00 $ 620.003. Garden Village 18 0$ 765-855 4. Gatzkes 9th Ave. 4 0$ 1,005.005. Green Estates 48 0 $ 410.00 $ 460.006. Innovation Village 126 2 $ 875.00 $ 975.00 $ 1,000-1,205 $ 1,290.007. Mill Ridge 36 0$ 900-944 $ 1,080.008. Onaka Village 36 0 $ 450.00 $ 550.00$ 705.009. The Pines 78 2$ 695.00 $ 735.0010. Southland Court 200 2 $ 600 - 650 $ 700.00 $ 925.00 $ 900-1,12511. Village Square 108 0$ 372-470$ 600-650 Totals/Average 782 8 $ 547.00 $ 668.00 $ 904.00 $ 953.00Tax Credit Units Vac Wait List Two Bdrm Three Bdrm Program12. Green Briar* 30 0 6 names $ 520-540 $ 575.00 50 & 60 % - Family13. South Briar* 30 0 6 names $ 520-540 $ 575.00 50 & 60 % - Family14. Three Oaks 24 0 5 names $ 465.00 $ 680.00 60 % - FamilyTotals 84 0* Wait lists at these two projects are shared_______________________________________________________ Property Dynamics Page C-1 ______________________________________________ January 2012 Vacancy RatesMarket Rate 1.02 %Tax Credit 0.00 %Low Income 0.00 %Family 0.00 %Senior NA Total 0.76 %Total Units Surveyed - 1,051Total units surveyed includes the 185 low income family units managed by Mills Property ManagementDisclaimer: The information listed above was obtained from the individual project owner, manager or property manager andalthough we believe the information to be correct we cannot guarantee its accuracy._______________________________________________________ Property Dynamics Page C-2 ______________________________________________ January 2012 Brookings Apartments 0 mi 0.2 0.4 0.6 0.8 _______________________________________________________ Property Dynamics Page C-3 ______________________________________________ January 2012 Campus View 2225 - 9th St Brookings, South Dakota 605-697-3183 Units: 88 Type: Market Rate Vacant: 0 Year Built: NA Two bedroom one bath 816 S.F. $ 630.00 $ .77 P.S.F. Three bedroom two bath 930 S.F. $ 855.00 $ .92 P.S.F. Four bedroom two bath 1,224 S.F. $ 995.00 $ .81 P.S.F. All one year leases, June - May Community Features None Unit Features All basic appliances including dishwasher/disposal/microwave - washer/dryer - walk-in closets carpets/blinds - AC Tenant paid utilities: Electric/phone/cable/water Landlord paid: Trash/cable Heat source: Electric Rent specials: None _______________________________________________________ Property Dynamics Page C-4 ______________________________________________ January 2012 Cedar West 703 - 8th St. S Brookings, South Dakota 605-695-2475 Moriarty PM Units: 40 Type: Market Rate Vacant: 2 Year Built:1970 Two bedroom two bath NA S.F. $ 620.00 Community Features Laundry facilities on site Unit Features All appliances including dishwasher - washer/dryer - walk-in closets - carpets/blinds - balcony Tenant paid utilities: Electric/phone/cable Landlord paid: Water/sewer/trash Heat source: Electric Rent specials: None _______________________________________________________ Property Dynamics Page C-5 ______________________________________________ January 2012 Garden Village 1821 - 8th St. Brookings, South Dakota 605-692-6310 Units: 18 Type: Market Rate Vacant: 0 Year Built: 1993 18 - Three bedroom two bath 904 - 1,032 S.F. $ 765.00 - 855.00 $ .83 - 85 P.S.F. Community Features Laundry facilities Unit Features All appliances including dishwasher/disposal - walk-in closets - carpets/blinds - balcony Tenant paid utilities: Electric/phone/cable Landlord paid: Water/sewer/trash/cable Heat source: Electric Rent specials: None _______________________________________________________ Property Dynamics Page C-6 ______________________________________________ January 2012 Gatzke’s # 9 103 - 9th Ave Brookings, South Dakota 605-697-3183 Mills Property Management Units: 4 Type: Market Rate Vacant: 0 Year Built: 2009 4 - Three bedroom two bath NA S.F. $ 1,005.00 Community Features None Unit Features All appliances including dishwasher - washer/dryer hookups - carpets/blinds - patio Tenant paid utilities: Electric/phone/cable Landlord paid: Water/sewer/trash Heat source: Electric Rent specials: None _______________________________________________________ Property Dynamics Page C-7 ______________________________________________ January 2012 Green Estates 815 Roberts Brookings, South Dakota 605-691-3003 Contact: Candy Units: 48 Type: Market Rate Vacant: 1 Year Built: NA One bedroom one bath 450 S.F. $ 410.00 $ .91P.S.F. Two bedroom one bath 600 S.F. $ 460.00 $ .77 P.S.F. Community Features Laundry facilities on site - garages available ($ 35/mo.) Unit Features All appliances including dishwasher/disposal - carpets/blinds - balcony Tenant paid utilities: Electric/phone/cable Landlord paid: Water/sewer/trash Heat source: Electric Rent specials: None _______________________________________________________ Property Dynamics Page C-8 ______________________________________________ January 2012 Innovation Village 2405 - 10th St. Brookings, South Dakota 605-692-4700 Mills Property Management - Pam Units: 126 Type: Market Rate Vacant: 2 Year Built: 2010 Vac One bedroom one bath NA S.F. $ 875.00 $ P.S.F. 1 One bedroom + Den NA S.F. $ 955.00 - 975. $ P.S.F. 1 Two bedroom one bath NA S.F. $ 1,000 - 1,205. $ P.S.F. 0 Two bedroom + Den NA S.F. $ 1,290.00 $ P.S.F. 0 Community Features Indoor pool/spa - fitness center (additional $ 20/mo). Underground parking - terrace bar and grilling area - business center - community room - suites for guests - security entry Unit Features All appliances including dishwasher/disposal - washer/dryer - walk-in closets - carpets/blinds patio/balcony - maple cabinets Tenant paid utilities: Electric/phone/cable Landlord paid: Water/sewer/trash Heat source: Electric Rent specials: None _______________________________________________________ Property Dynamics Page C-9 ______________________________________________ January 2012 Mills Ridge 2410 Sunrise Ridge Circle Brookings, South Dakota 605-692-6310 Mills Property Management Units: 36 Type: Market Rate Vacant: 0 Year Built: 2005 30 - Two bedroom two bath 1,240 S.F. $ 900.00 - 944.00 $ .73 P.S.F. 6 - Three bedroom two bath 1,340 S.F. $ 1,080.00 $ .81 P.S.F. Community Features Controlled entry - underground parking Unit Features All appliances including dishwasher - washer/dryer - walk-in closets - carpets/blinds - balcony Tenant paid utilities: Electric/phone/cable/water Landlord paid: Trash/cable/internet Heat source: Gas Rent specials: None _______________________________________________________ Property Dynamics Page C-10 ______________________________________________ January 2012 Onaka Village 812 Onaka Trail Brookings, South Dakota 605-692-6310 - Mills PM Units: 36 Type: Market Rate Vacant: 0 Year Built: 1978 One bedroom one bath 625 S.F. $ 450.00 Two bedroom two bath 785 S.F. $ 550.00 Three bedroom two bath 825 S.F. $ 705.00 Community Features Laundry facilities on site - children’s play area Unit Features All basic kitchen appliances - carpets/blinds - balcony Tenant paid utilities: Electric/phone/cable/water Landlord paid: Trash Heat source: Electric Rent specials: None _______________________________________________________ Property Dynamics Page C-11 ______________________________________________ January 2012 The Pines 840 Park Ave. Brookings, South Dakota 605-695-2475 Moriarty PM Units: 78 Type: Market Rate Vacant: 2 Year Built: 1990 Two bedroom one bath 785 S.F. $ 695.00 $ .89 P.S.F. Two bedroom two bath 830 S.F. $ 735.00 $ .93 P.S.F. Community Features Laundry facilities Unit Features All appliances including dishwasher/disposal - carpets/blinds - air conditioning Tenant paid utilities: Electric/phone/cable Landlord paid: Water/sewer/trash Heat source: Electric Rent specials: None _______________________________________________________ Property Dynamics Page C-12 ______________________________________________ January 2012 Southland Court 920 Southland Dr. Brookings, South Dakota 605-695-6140 Units: 200 Type: Market Rate Vacant: 2 Year Built: 2009 (newest building) One bedroom one bath 650 S.F. $ 600.00 - 650.00 $ .92 - 1.00 P.S.F. Two bedroom one bath 850 S.F. $ 700.00 $ .82 P.S.F. Two bedroom two bath 1,200 S.F. $ 875 - 925.00 $ .77 P.S.F. Three bedroom two bath 1,000 - 1,500 S.F. $ 900 - 1,125.00 $ .72 - .90 P.S.F. Community Features Laundry facilities on site - garages available (at additional cost) Unit Features All appliances including dishwasher - carpets/blinds - balcony - AC Tenant paid utilities: Electric/phone Landlord paid: Water/sewer/trash/cable/internet Heat source: Gas (new bldg) - Electric Rent specials: None _______________________________________________________ Property Dynamics Page C-13 ______________________________________________ January 2012 Village Square 1821 - 8th St. Brookings, South Dakota 605-692-6310 Mills Property Management - Pam Units: 108 Type: Market Rate Vacant: 2 Year Built: NA One bedroom one bath 406 S.F. $ 372.00 - 470.00 $ .92 - 1.16 P.S.F. Two bedroom one bath 809 S.F. $ 500.00 - 600.00 $ .62 - .74 P.S.F. Community Features Laundry facilities on site - garages available Unit Features All appliances including dishwasher - walk-in closets - carpets/blinds - balcony Tenant paid utilities: Electric/phone/cable/water Landlord paid: Trash/cable/internet Heat source: Electric Rent specials: None _______________________________________________________ Property Dynamics Page C-14 ______________________________________________ January 2012 Green Briar 500 - 15th St. S Brookings, South Dakota 605-692-9551 Units: 30 Type: Tax Credit - Family Vacant: 0 Wait List: 6 names (shared with South Briar) Year Built: 1998 - 2000 50 % Units 60 % Units 28 - Two bedroom one bath 860 S.F. $ 520.00 $ 540.00 2 - Three bedroom two bath 1020 S.F. $ 575.00 Community Features Laundry facilities - children’s play area - one parking spot w/plug in Unit Features All basic kitchen appliances including dishwasher/disposal - carpets/blinds - walk-in closets AC Tenant paid utilities: Electric/phone/cable Landlord paid: Water/sewer/trash/heat Heat source: Gas Rent specials: None _______________________________________________________ Property Dynamics Page C-15 ______________________________________________ January 2012 South Briar 500 - 15th St. S Brookings, South Dakota 605-692-9551 Contact: Jackie Units: 30 Type: Tax Credit - Family Vacant: 0 Wait List: 6 names (shared with Green Briar) Year Built: 1998 - 2000 50 % Units 60 % Units 28 - Two bedroom one bath 860 S.F. $ 520.00 $ 540.00 2 - Three bedroom two bath 1,020 S.F. $ 575.00 Community Features Laundry facilities - children’s play area - one parking spot w/plug in Unit Features All basic kitchen appliances including dishwasher/disposal - carpets/blinds - walk-in closets - AC Tenant paid utilities: Electric/phone/cable Landlord paid: Water/sewer/trash/heat Heat source: Gas Rent specials: None _______________________________________________________ Property Dynamics Page C-16 ______________________________________________ January 2012 Three Oaks 705 - 6th Ave S Brookings, South Dakota 605-692-6310 Mills PM Units: 24 Type: Tax Credit - Family Vacant: 0 Wait List: 5 names Year Built: NA 60 % Two bedroom one bath 896 S.F. $ 465.00 $ .52 P.S.F. Three bedroom one bath 1080 S.F. $ 680.00 $ .63 P.S.F. Community Features Laundry facilities - children’s play area Unit Features All basic kitchen appliances - washer/dryer hookups - carpets/blinds - balcony Tenant paid utilities: Electric/phone/cable/water Landlord paid: Water/sewer/trash Heat source: Electric Rent specials: None _______________________________________________________ Property Dynamics Page C-17 ______________________________________________ January 2012 SECTION D ECONOMIC DATA 2 4 6 8 10 UNEMPLOYMENT RATE2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YEAR U.S.SOUTH DAKOTA BROOKINGS COUNTY UNEMPLOYMENT RATE COMPARISON 2001 - 2010 COMPARISON OF UNEMPLOYMENT RATES 2001 - 2011 Year United States South Dakota Brookings County 2001 4.7 %3.1 %2.8 % 2002 5.8 % 3.3 % 2.9 % 2003 6.0 %3.5 %3.0 % 2004 5.5 %3.7 %2.9 % 2005 5.1 %3.7 %3.0 % 2006 4.6 %3.1 %2.4 % 2007 4.6 %2.9 %2.2 % 2008 5.8 %3.1 % 2.5 % 2009 9.3 %5.0 %3.8 % 2010 9.6 %4.8 %4.1 % 2011*8.2 %3.9 %3.1 % * November Only Lawrence County = Brookings MiSA 2001 - 2010 are Annual Averages - Not Seasonally Adjusted Source: South Dakota Department of Labor _______________________________________________________ Property Dynamics Page D-1 ______________________________________________ January 2012 ANNUAL CHANGE FOR EMPLOYMENT & UNEMPLOYMENT 2001 - 2011 BROOKINGS COUNTY (BROOKINGS MiSA) Unemployment Year Employment Change % Change Rate 2001 16,515 2.8 % 2002 16,450 (65) (0.4)% 2.9 % 2003 17,005 555 3.4 % 3.0 % 2004 17,535 530 3.1 % 2.9 % 2005 17,705 170 1.0 % 3.0 % 2006 18,505 800 4.5 % 2.4 % 2007 19,225 720 3.9 % 2.2 % 2008 19,080 (145) (0.8)% 2.5 % 2009 18,225 (855) (4.5)% 3.8 % 2010 18,010 (215) (1.2)% 4.1 % 2001 - 2010 Change 1,495 9.1 % 2001 - 2010 Annual Averages - Not Seasonally Adjusted November 2010 18,660 3.6 % November 2011 18,875 215 1.2 % 3.1 % Source: South Dakota Department of Labor _______________________________________________________ Property Dynamics Page D-2 ______________________________________________ January 2012 ANNUAL CHANGE FOR EMPLOYMENT & UNEMPLOYMENT 2006 - 2011 CITY OF BROOKINGS Unemployment Year Employment Change % Change Rate 2006 12,525 2.4 % 2007 12,990 465 3.7 % 2.3 % 2008 12,850 (140) (1.1)% 2.5 % 2009 12,450 (400) (3.1)% 3.8 % 2010 12,270 (180) (1.4)% 4.2 % 2006 - 2010 Change (255) (2.0)% 2006 - 2010 Annual Averages - Not Seasonally Adjusted November 2010 12,715 3.6 % November 2011 12,865 150 1.2 % 3.2 % Source: South Dakota Department of Labor _______________________________________________________ Property Dynamics Page D-3 ______________________________________________ January 2012 EMPLOYMENT BY INDUSTRY Brookings County 2010 Annual 2001 2010 Change % Change Wage Agriculture, Forestry, 46 57 (11) (23.9)% $ 31,039 Fishing & Hunting Mining 450 188 (263) (58.4)% $ 56,794 Construction 506 645 139 27.5 % $ 38,806 Manufacturing 522 555 33 6.3 % $ 35,827 Wholesale Trade 70 142 72 102.9 % $ 26,448 Retail Trade 1,236 1,396 160 12.9 % $ 24,420 Transportation & Warehousing 113 178 65 57.5 % $ 23,909 Utilities 47 33 (14) (29.8)% $ 64,172 Information 109 149 40 36.7 % $ 29,352 Financial & Insurance 395 670 275 69.6 % $ 36,118 Real Estate, Rental & Leasing 133 107 (26) (19.5)% $ 24,389 Professional & Business Services 315 526 211 67.0 % $ 37,876 Management of Companies/Enterprises 5 63 58 1160.0 % $ 48,134 Educational Services 5 50 45 900.0 % $ 13,803 Health Care / Social Assistance 1,083 1,300 217 20.0 % $ 38,680 Arts, Entertainment & Recreation 1,188 987 (201) (16.9)% $ 20,850 Accommodation and Food Service 1,718 2,602 884 51.5 % $ 16,457 Other Services, except 257 250 (7) (2.7)% $ 23,796 Public Administration Total Government 1,527 1,712 185 12.1 % $ 35,634 Total All Industries 9,721 11,547 1,826 18.8 % $ 29,038 Source: South Dakota Department of Labor _______________________________________________________ Property Dynamics Page D-4 ______________________________________________ January 2012 BROOKINGS MAJOR EMPLOYERS Employer # of Employees South Dakota State University 2,121 Daktronics 1,655 3M 796 Larson Manufacturing 551 Fishback Financial Corp. 455 Hy-Vee 443 Wal-Mart 425 Brookings Health System 405 Brookings School District 316 Twin City Fan 257 City of Brookings 217 ADVANCE 213 Brookings Municipal Utilities 205 Aramark Food Service 170 United Retirement Center 166 Swiftel Communications 162 Rainbow Play Systems 150 Avera Brookings Medical Clinic 140 Falcon Plastics 134 Capital Card 102 South Dakota Soybean Processors 99 Source: Brookings Economic Development Corp. _______________________________________________________ Property Dynamics Page D-5 ______________________________________________ January 2012 SECTION E APPENDIX SOURCES OF INFORMATION U.S. Census Bureau State, County & City - population, households & housing units Claritas / Ribbon Demographics Market area and city information - population, household, household incomes, housing units, maps State of South Dakota - Department Employment & Labor Force information, of Labor major employers City of Brookings Projects in planning, building permits & Mike Struck - Comm. Dev. Director zoning Brookings Economic Development Corp. Economic Conditions Ryan Brunner - Project Coordinator Brookings County Housing & Section 8 Voucher information Redevelopment Commission General housing information Nyla Smith - Program Specialist Apartment Managers Rental information on existing projects _______________________________________________________ Property Dynamics Page E-1 ______________________________________________ January 2012 DP-1 Profile of General Population and Housing Characteristics: 2010 2010 Demographic Profile Data NOTE: For more information on confidentiality protection, nonsampling error, and definitions, see http://www.census.gov/prod/cen2010/doc/dpsf.pdf. Geography: Brookings County, South Dakota Subject Number Percent SEX AND AGE Total population 31,965 100.0 Under 5 years 1,907 6.0 5 to 9 years 1,697 5.3 10 to 14 years 1,562 4.9 15 to 19 years 3,643 11.4 20 to 24 years 6,358 19.9 25 to 29 years 2,647 8.3 30 to 34 years 1,774 5.5 35 to 39 years 1,526 4.8 40 to 44 years 1,469 4.6 45 to 49 years 1,622 5.1 50 to 54 years 1,736 5.4 55 to 59 years 1,650 5.2 60 to 64 years 1,204 3.8 65 to 69 years 917 2.9 70 to 74 years 698 2.2 75 to 79 years 543 1.7 80 to 84 years 465 1.5 85 years and over 547 1.7 Median age (years)26.3 ( X ) 16 years and over 26,512 82.9 18 years and over 25,927 81.1 21 years and over 21,388 66.9 62 years and over 3,872 12.1 65 years and over 3,170 9.9 Male population 16,382 51.2 Under 5 years 949 3.0 5 to 9 years 840 2.6 10 to 14 years 783 2.4 15 to 19 years 1,818 5.7 20 to 24 years 3,435 10.7 25 to 29 years 1,499 4.7 30 to 34 years 949 3.0 35 to 39 years 817 2.6 40 to 44 years 763 2.4 45 to 49 years 832 2.6 50 to 54 years 865 2.7 55 to 59 years 826 2.6 60 to 64 years 607 1.9 65 to 69 years 456 1.4 70 to 74 years 332 1.0 75 to 79 years 231 0.7 80 to 84 years 202 0.6 85 years and over 178 0.6 1 of4 01/01/2012_______________________________________________________ Property Dynamics Page E-2 ______________________________________________ January 2012 Subject Number Percent Median age (years)25.9 ( X ) 16 years and over 13,657 42.7 18 years and over 13,334 41.7 21 years and over 11,083 34.7 62 years and over 1,747 5.5 65 years and over 1,399 4.4 Female population 15,583 48.8 Under 5 years 958 3.0 5 to 9 years 857 2.7 10 to 14 years 779 2.4 15 to 19 years 1,825 5.7 20 to 24 years 2,923 9.1 25 to 29 years 1,148 3.6 30 to 34 years 825 2.6 35 to 39 years 709 2.2 40 to 44 years 706 2.2 45 to 49 years 790 2.5 50 to 54 years 871 2.7 55 to 59 years 824 2.6 60 to 64 years 597 1.9 65 to 69 years 461 1.4 70 to 74 years 366 1.1 75 to 79 years 312 1.0 80 to 84 years 263 0.8 85 years and over 369 1.2 Median age (years)26.8 ( X ) 16 years and over 12,855 40.2 18 years and over 12,593 39.4 21 years and over 10,305 32.2 62 years and over 2,125 6.6 65 years and over 1,771 5.5 RACE Total population 31,965 100.0 One Race 31,511 98.6 White 29,802 93.2 Black or African American 254 0.8 American Indian and Alaska Native 282 0.9 Asian 869 2.7 Asian Indian 228 0.7 Chinese 290 0.9 Filipino 41 0.1 Japanese 21 0.1 Korean 109 0.3 Vietnamese 27 0.1 Other Asian [1]153 0.5 Native Hawaiian and Other Pacific Islander 9 0.0 Native Hawaiian 4 0.0 Guamanian or Chamorro 2 0.0 Samoan 1 0.0 Other Pacific Islander [2]2 0.0 Some Other Race 295 0.9 Two or More Races 454 1.4 White; American Indian and Alaska Native [3]158 0.5 White; Asian [3]125 0.4 White; Black or African American [3]78 0.2 White; Some Other Race [3]28 0.1 Race alone or in combination with one or more other races: [4] White 30,228 94.6 Black or African American 377 1.2 American Indian and Alaska Native 483 1.5 2 of4 01/01/2012_______________________________________________________ Property Dynamics Page E-3 ______________________________________________ January 2012 Subject Number Percent Asian 1,017 3.2 Native Hawaiian and Other Pacific Islander 19 0.1 Some Other Race 330 1.0 HISPANIC OR LATINO Total population 31,965 100.0 Hispanic or Latino (of any race)636 2.0 Mexican 431 1.3 Puerto Rican 16 0.1 Cuban 4 0.0 Other Hispanic or Latino [5]185 0.6 Not Hispanic or Latino 31,329 98.0 HISPANIC OR LATINO AND RACE Total population 31,965 100.0 Hispanic or Latino 636 2.0 White alone 289 0.9 Black or African American alone 8 0.0 American Indian and Alaska Native alone 10 0.0 Asian alone 3 0.0 Native Hawaiian and Other Pacific Islander alone 0 0.0 Some Other Race alone 273 0.9 Two or More Races 53 0.2 Not Hispanic or Latino 31,329 98.0 White alone 29,513 92.3 Black or African American alone 246 0.8 American Indian and Alaska Native alone 272 0.9 Asian alone 866 2.7 Native Hawaiian and Other Pacific Islander alone 9 0.0 Some Other Race alone 22 0.1 Two or More Races 401 1.3 RELATIONSHIP Total population 31,965 100.0 In households 28,377 88.8 Householder 12,029 37.6 Spouse [6]5,489 17.2 Child 6,688 20.9 Own child under 18 years 5,685 17.8 Other relatives 635 2.0 Under 18 years 200 0.6 65 years and over 63 0.2 Nonrelatives 3,536 11.1 Under 18 years 60 0.2 65 years and over 25 0.1 Unmarried partner 633 2.0 In group quarters 3,588 11.2 Institutionalized population 127 0.4 Male 41 0.1 Female 86 0.3 Noninstitutionalized population 3,461 10.8 Male 1,694 5.3 Female 1,767 5.5 HOUSEHOLDS BY TYPE Total households 12,029 100.0 Family households (families) [7]6,623 55.1 With own children under 18 years 2,982 24.8 Husband-wife family 5,489 45.6 With own children under 18 years 2,313 19.2 Male householder, no wife present 399 3.3 With own children under 18 years 204 1.7 Female householder, no husband present 735 6.1 With own children under 18 years 465 3.9 3 of4 01/01/2012_______________________________________________________ Property Dynamics Page E-4 ______________________________________________ January 2012 Subject Number Percent Nonfamily households [7]5,406 44.9 Householder living alone 3,557 29.6 Male 1,818 15.1 65 years and over 252 2.1 Female 1,739 14.5 65 years and over 693 5.8 Households with individuals under 18 years 3,116 25.9 Households with individuals 65 years and over 2,205 18.3 Average household size 2.36 ( X ) Average family size [7]2.93 ( X ) HOUSING OCCUPANCY Total housing units 13,137 100.0 Occupied housing units 12,029 91.6 Vacant housing units 1,108 8.4 For rent 367 2.8 Rented, not occupied 26 0.2 For sale only 147 1.1 Sold, not occupied 47 0.4 For seasonal, recreational, or occasional use 305 2.3 All other vacants 216 1.6 Homeowner vacancy rate (percent) [8]2.1 ( X ) Rental vacancy rate (percent) [9]6.7 ( X ) HOUSING TENURE Occupied housing units 12,029 100.0 Owner-occupied housing units 6,920 57.5 Population in owner-occupied housing units 17,686 ( X ) Average household size of owner-occupied units 2.56 ( X ) Renter-occupied housing units 5,109 42.5 Population in renter-occupied housing units 10,691 ( X ) Average household size of renter-occupied units 2.09 ( X ) X Not applicable. [1] Other Asian alone, or two or more Asian categories. [2] Other Pacific Islander alone, or two or more Native Hawaiian and Other Pacific Islander categories. [3] One of the four most commonly reported multiple-race combinations nationwide in Census 2000. [4] In combination with one or more of the other races listed. The six numbers may add to more than the total population, and the six percentages may add to more than 100 percent because individuals may report more than one race. [5] This category is composed of people whose origins are from the Dominican Republic, Spain, and Spanish-speaking Central or South American countries. It also includes general origin responses such as "Latino" or "Hispanic." [6] "Spouse" represents spouse of the householder. It does not reflect all spouses in a household. Responses of "same-sex spouse" were edited during processing to "unmarried partner." [7] "Family households" consist of a householder and one or more other people related to the householder by birth, marriage, or adoption. They do not include same-sex married couples even if the marriage was performed in a state issuing marriage certificates for same-sex couples. Same-sex couple households are included in the family households category if there is at least one additional person related to the householder by birth or adoption. Same-sex couple households with no relatives of the householder present are tabulated in nonfamily households. "Nonfamily households" consist of people living alone and households which do not have any members related to the householder. [8] The homeowner vacancy rate is the proportion of the homeowner inventory that is vacant "for sale." It is computed by dividing the total number of vacant units "for sale only" by the sum of owner-occupied units, vacant units that are "for sale only," and vacant units that have been sold but not yet occupied; and then multiplying by 100. [9] The rental vacancy rate is the proportion of the rental inventory that is vacant "for rent." It is computed by dividing the total number of vacant units "for rent" by the sum of the renter-occupied units, vacant units that are "for rent," and vacant units that have been rented but not yet occupied; and then multiplying by 100. Source: U.S. Census Bureau, 2010 Census. 4 of4 01/01/2012_______________________________________________________ Property Dynamics Page E-5 ______________________________________________ January 2012 DP-1 Profile of General Population and Housing Characteristics: 2010 2010 Demographic Profile Data NOTE: For more information on confidentiality protection, nonsampling error, and definitions, see http://www.census.gov/prod/cen2010/doc/dpsf.pdf. Geography: Brookings city, South Dakota Subject Number Percent SEX AND AGE Total population 22,056 100.0 Under 5 years 1,153 5.2 5 to 9 years 1,040 4.7 10 to 14 years 875 4.0 15 to 19 years 3,028 13.7 20 to 24 years 5,848 26.5 25 to 29 years 1,929 8.7 30 to 34 years 1,162 5.3 35 to 39 years 961 4.4 40 to 44 years 858 3.9 45 to 49 years 909 4.1 50 to 54 years 925 4.2 55 to 59 years 907 4.1 60 to 64 years 618 2.8 65 to 69 years 496 2.2 70 to 74 years 361 1.6 75 to 79 years 307 1.4 80 to 84 years 305 1.4 85 years and over 374 1.7 Median age (years)23.5 ( X ) 16 years and over 18,821 85.3 18 years and over 18,516 83.9 21 years and over 14,287 64.8 62 years and over 2,203 10.0 65 years and over 1,843 8.4 Male population 11,263 51.1 Under 5 years 582 2.6 5 to 9 years 506 2.3 10 to 14 years 430 1.9 15 to 19 years 1,500 6.8 20 to 24 years 3,147 14.3 25 to 29 years 1,110 5.0 30 to 34 years 631 2.9 35 to 39 years 512 2.3 40 to 44 years 446 2.0 45 to 49 years 463 2.1 50 to 54 years 447 2.0 55 to 59 years 439 2.0 60 to 64 years 298 1.4 65 to 69 years 244 1.1 70 to 74 years 153 0.7 75 to 79 years 122 0.6 80 to 84 years 118 0.5 85 years and over 115 0.5 1 of4 01/01/2012_______________________________________________________ Property Dynamics Page E-6 ______________________________________________ January 2012 Subject Number Percent Median age (years)23.5 ( X ) 16 years and over 9,650 43.8 18 years and over 9,481 43.0 21 years and over 7,393 33.5 62 years and over 923 4.2 65 years and over 752 3.4 Female population 10,793 48.9 Under 5 years 571 2.6 5 to 9 years 534 2.4 10 to 14 years 445 2.0 15 to 19 years 1,528 6.9 20 to 24 years 2,701 12.2 25 to 29 years 819 3.7 30 to 34 years 531 2.4 35 to 39 years 449 2.0 40 to 44 years 412 1.9 45 to 49 years 446 2.0 50 to 54 years 478 2.2 55 to 59 years 468 2.1 60 to 64 years 320 1.5 65 to 69 years 252 1.1 70 to 74 years 208 0.9 75 to 79 years 185 0.8 80 to 84 years 187 0.8 85 years and over 259 1.2 Median age (years)23.5 ( X ) 16 years and over 9,171 41.6 18 years and over 9,035 41.0 21 years and over 6,894 31.3 62 years and over 1,280 5.8 65 years and over 1,091 4.9 RACE Total population 22,056 100.0 One Race 21,703 98.4 White 20,305 92.1 Black or African American 234 1.1 American Indian and Alaska Native 217 1.0 Asian 821 3.7 Asian Indian 223 1.0 Chinese 279 1.3 Filipino 33 0.1 Japanese 20 0.1 Korean 101 0.5 Vietnamese 25 0.1 Other Asian [1]140 0.6 Native Hawaiian and Other Pacific Islander 8 0.0 Native Hawaiian 4 0.0 Guamanian or Chamorro 1 0.0 Samoan 1 0.0 Other Pacific Islander [2]2 0.0 Some Other Race 118 0.5 Two or More Races 353 1.6 White; American Indian and Alaska Native [3]124 0.6 White; Asian [3]90 0.4 White; Black or African American [3]66 0.3 White; Some Other Race [3]17 0.1 Race alone or in combination with one or more other races: [4] White 20,638 93.6 Black or African American 340 1.5 American Indian and Alaska Native 379 1.7 2 of4 01/01/2012_______________________________________________________ Property Dynamics Page E-7 ______________________________________________ January 2012 Subject Number Percent Asian 931 4.2 Native Hawaiian and Other Pacific Islander 16 0.1 Some Other Race 139 0.6 HISPANIC OR LATINO Total population 22,056 100.0 Hispanic or Latino (of any race)335 1.5 Mexican 207 0.9 Puerto Rican 12 0.1 Cuban 4 0.0 Other Hispanic or Latino [5]112 0.5 Not Hispanic or Latino 21,721 98.5 HISPANIC OR LATINO AND RACE Total population 22,056 100.0 Hispanic or Latino 335 1.5 White alone 182 0.8 Black or African American alone 2 0.0 American Indian and Alaska Native alone 9 0.0 Asian alone 3 0.0 Native Hawaiian and Other Pacific Islander alone 0 0.0 Some Other Race alone 106 0.5 Two or More Races 33 0.1 Not Hispanic or Latino 21,721 98.5 White alone 20,123 91.2 Black or African American alone 232 1.1 American Indian and Alaska Native alone 208 0.9 Asian alone 818 3.7 Native Hawaiian and Other Pacific Islander alone 8 0.0 Some Other Race alone 12 0.1 Two or More Races 320 1.5 RELATIONSHIP Total population 22,056 100.0 In households 18,699 84.8 Householder 8,159 37.0 Spouse [6]3,060 13.9 Child 3,939 17.9 Own child under 18 years 3,374 15.3 Other relatives 395 1.8 Under 18 years 121 0.5 65 years and over 31 0.1 Nonrelatives 3,146 14.3 Under 18 years 37 0.2 65 years and over 16 0.1 Unmarried partner 451 2.0 In group quarters 3,357 15.2 Institutionalized population 92 0.4 Male 27 0.1 Female 65 0.3 Noninstitutionalized population 3,265 14.8 Male 1,599 7.2 Female 1,666 7.6 HOUSEHOLDS BY TYPE Total households 8,159 100.0 Family households (families) [7]3,836 47.0 With own children under 18 years 1,813 22.2 Husband-wife family 3,060 37.5 With own children under 18 years 1,352 16.6 Male householder, no wife present 246 3.0 With own children under 18 years 123 1.5 Female householder, no husband present 530 6.5 With own children under 18 years 338 4.1 3 of4 01/01/2012_______________________________________________________ Property Dynamics Page E-8 ______________________________________________ January 2012 Subject Number Percent Nonfamily households [7]4,323 53.0 Householder living alone 2,663 32.6 Male 1,296 15.9 65 years and over 150 1.8 Female 1,367 16.8 65 years and over 489 6.0 Households with individuals under 18 years 1,894 23.2 Households with individuals 65 years and over 1,310 16.1 Average household size 2.29 ( X ) Average family size [7]2.93 ( X ) HOUSING OCCUPANCY Total housing units 8,715 100.0 Occupied housing units 8,159 93.6 Vacant housing units 556 6.4 For rent 293 3.4 Rented, not occupied 17 0.2 For sale only 88 1.0 Sold, not occupied 26 0.3 For seasonal, recreational, or occasional use 36 0.4 All other vacants 96 1.1 Homeowner vacancy rate (percent) [8]2.2 ( X ) Rental vacancy rate (percent) [9]6.3 ( X ) HOUSING TENURE Occupied housing units 8,159 100.0 Owner-occupied housing units 3,843 47.1 Population in owner-occupied housing units 9,778 ( X ) Average household size of owner-occupied units 2.54 ( X ) Renter-occupied housing units 4,316 52.9 Population in renter-occupied housing units 8,921 ( X ) Average household size of renter-occupied units 2.07 ( X ) X Not applicable. [1] Other Asian alone, or two or more Asian categories. [2] Other Pacific Islander alone, or two or more Native Hawaiian and Other Pacific Islander categories. [3] One of the four most commonly reported multiple-race combinations nationwide in Census 2000. [4] In combination with one or more of the other races listed. The six numbers may add to more than the total population, and the six percentages may add to more than 100 percent because individuals may report more than one race. [5] This category is composed of people whose origins are from the Dominican Republic, Spain, and Spanish-speaking Central or South American countries. It also includes general origin responses such as "Latino" or "Hispanic." [6] "Spouse" represents spouse of the householder. It does not reflect all spouses in a household. Responses of "same-sex spouse" were edited during processing to "unmarried partner." [7] "Family households" consist of a householder and one or more other people related to the householder by birth, marriage, or adoption. They do not include same-sex married couples even if the marriage was performed in a state issuing marriage certificates for same-sex couples. Same-sex couple households are included in the family households category if there is at least one additional person related to the householder by birth or adoption. Same-sex couple households with no relatives of the householder present are tabulated in nonfamily households. "Nonfamily households" consist of people living alone and households which do not have any members related to the householder. [8] The homeowner vacancy rate is the proportion of the homeowner inventory that is vacant "for sale." It is computed by dividing the total number of vacant units "for sale only" by the sum of owner-occupied units, vacant units that are "for sale only," and vacant units that have been sold but not yet occupied; and then multiplying by 100. [9] The rental vacancy rate is the proportion of the rental inventory that is vacant "for rent." It is computed by dividing the total number of vacant units "for rent" by the sum of the renter-occupied units, vacant units that are "for rent," and vacant units that have been rented but not yet occupied; and then multiplying by 100. Source: U.S. Census Bureau, 2010 Census. 4 of4 01/01/2012_______________________________________________________ Property Dynamics Page E-9 ______________________________________________ January 2012 Brookings, SD Pop-Facts: Demographic Quick Facts 2011 Report Place, (see appendix for geographies), aggregate Place Total %Description Population 20,826 2016 Projection 20,184 2011 Estimate 18,504 2000 Census 16,325 1990 Census 13.35% Growth 1990 - 2000 Households 7,955 2016 Projection 7,716 2011 Estimate 6,971 2000 Census 5,705 1990 Census 22.19% Growth 1990 - 2000 2011 Est. Population by Single Classification Race 20,184 18,810 93.19 White Alone 167 0.83 Black or African American Alone 249 1.23 American Indian and Alaska Native Alone 660 3.27 Asian Alone 18 0.09 Native Hawaiian and Other Pacific Islander Alone 65 0.32 Some Other Race Alone 215 1.07 Two or More Races 2011 Est. Population Hispanic or Latino 20,184 211 1.05 Hispanic or Latino 19,973 98.95 Not Hispanic or Latino 2011 Tenure of Occupied Housing Units 7,716 3,728 48.32 Owner Occupied 3,988 51.68 Renter Occupied 2011 Average Household Size 2.21 Nielsen Solution Center 1 800 866 6511 Prepared By: Prepared For: Property Dynamics Project Code: Brookings, SD 31OfPage © 2011 The Nielsen Company. All rights reserved. Mon Dec 19, 2011Prepared On: _______________________________________________________ Property Dynamics Page E-10 ______________________________________________ January 2012 Brookings, SD Household Trend 2011 Place (see appendix for geographies), Total 2011-20162000-2011 %Change Description Census Estimate Projection 2000 2011 2016%Change Universe Totals Population 20,826 3.18%18,504 20,184 9.08% Households 7,955 3.10%6,971 7,716 10.69% Families 4,012 3.46%3,420 3,878 13.39% Housing Units 8,603 3.08%7,359 8,346 13.41% Group Quarters Population 3,321 6.51%2,775 3,118 12.36% Average Household Size 2.202.26 2.21 Income Totals Aggregate($MM) Household Income 416.46 5.87%299.18 393.37 31.49% Per Capita($)21,112 2.66%17,080 20,565 20.40% %% 201620112000 %ProjectionEstimateCensusDescription Total Household Income 7,9556,968 7,716 23.65% 18.04% 17.52% Income Less than $15,000 1,3941,648 1,392 16.06% 14.80% 14.56% Income $15,000 - $24,999 1,1581,119 1,142 15.01% 13.65% 13.35% Income $25,000 - $34,999 1,0621,046 1,053 15.89% 14.90% 14.93% Income $35,000 - $49,999 1,1881,107 1,150 15.54% 18.83% 18.88% Income $50,000 - $74,999 1,5021,083 1,453 8.35% 9.46% 9.64% Income $75,000 - $99,999 767582 730 5.47% 5.68% Income $100,000 - $124,999 452422 3.43% Income $100,000 - $149,999 239 1.88% 2.23% Income $125,000 - $149,999 177145 1.44% 1.57% Income $150,000 - $199,999 125111 1.45% Income $150,000 - $249,999 101 1.28% 1.36% Income $200,000 - $499,999 10899 0.43% Income $250,000 - $499,999 30 0.19% 0.25% 0.28% Income $500,000 or more 2213 19 Average Household Income $52,353$42,936 $50,981 Median Household Income $39,590$31,855 $38,535 Nielsen Solution Center 1 800 866 6511 Prepared By: Prepared For: Property Dynamics Project Code: Brookings, SD 31OfPage © 2011 The Nielsen Company. All rights reserved. Mon Dec 19, 2011Prepared On: _______________________________________________________ Property Dynamics Page E-11 ______________________________________________ January 2012 Brookings, SD Pop-Facts: Demographic Trend 2011 Place (see appendix for geographies), Total %%Description Census Estimate Projection% 2000 2011 2016 20,82620,18418,504Population by Age 5.18%5.44%5.61% Age 0 - 4 959 1,099 1,169 4.51%4.88%5.26% Age 5 - 9 835 984 1,096 4.80%4.39%4.71% Age 10 - 14 888 887 981 2.93%2.91%2.59% Age 15 - 17 543 587 539 17.26%16.63%16.43% Age 18 - 20 3,194 3,357 3,422 19.37%20.11%17.68% Age 21 - 24 3,584 4,060 3,683 11.91%12.11%13.47% Age 25 - 34 2,204 2,445 2,805 10.10%8.40%8.78% Age 35 - 44 1,869 1,695 1,829 8.75%8.33%7.85% Age 45 - 54 1,619 1,682 1,635 5.27%7.42%7.85% Age 55 - 64 975 1,497 1,634 4.04%4.14%4.88% Age 65 - 74 748 836 1,016 3.86%2.86%2.61% Age 75 - 84 714 577 544 2.01%2.37%2.27% Age 85 and over 372 478 473 84.58%84.37%83.60% Age 16 and over 15,650 17,029 17,410 82.57%82.38%81.83% Age 18 and over 15,279 16,627 17,041 65.31%65.75%65.39% Age 21 and over 12,085 13,270 13,619 9.91%9.37%9.76% Age 65 and over 1,834 1,891 2,033 24.4824.1324.16Median Age 32.5032.2032.10Average Age 20,82620,18418,504Population by Sex 49.94%50.51%50.47% Male 9,240 10,195 10,511 50.06%49.49%49.53% Female 9,264 9,989 10,315 Male/Female Ratio 1.00 1.02 1.02 Prepared By: © 2011 The Nielsen Company. All rights reserved. Nielsen Solution Center 1 800 866 6511 4Of1Page Prepared For: Property Dynamics Project Code: Brookings, SD Mon Dec 19, 2011Prepared On: _______________________________________________________ Property Dynamics Page E-12 ______________________________________________ January 2012 Brookings, SD Pop-Facts: Demographic Trend 2011 Place (see appendix for geographies), Total %%Description Census Estimate Projection% 2000 2011 2016 Pop. by Single Race Class. and Hispanic or Latino 243211139Hispanic or Latino: 51.80%52.13%52.26% White Alone 72 110 127 1.44%1.42%1.23% Black or African American Alone 2 3 3 5.04%4.74%4.53% American Indian and Alaska Native Alone 7 10 11 0.72%1.42%1.65% Asian Alone 1 3 4 0.72%1.42%1.23% Native Hawaiian and Other Pacific Islander Alone 1 3 3 25.18%23.70%23.87% Some Other Race Alone 35 50 58 15.11%15.17%15.23% Two or More Races 21 32 37 20,58319,97318,365Not Hispanic or Latino: 95.82%93.63%92.62% White Alone 17,598 18,700 19,063 0.43%0.82%0.99% Black or African American Alone 79 164 203 0.96%1.20%1.31% American Indian and Alaska Native Alone 177 239 270 1.89%3.29%3.92% Asian Alone 347 657 806 0.05%0.08%0.09% Native Hawaiian and Other Pacific Islander Alone 9 15 19 0.08%0.08%0.07% Some Other Race Alone 14 15 15 0.77%0.92%1.01% Two or More Races 141 183 207 7,9557,7166,971Households by Age of Householder 27.07% 26.37% 23.28% Householder Under 25 Years 1,887 2,035 1,852 18.19% 18.66% 20.58% Householder 25 to 34 Years 1,268 1,440 1,637 15.89% 13.69% 14.31% Householder 35 to 44 Years 1,108 1,056 1,138 13.74% 13.48% 12.76% Householder 45 to 54 Years 958 1,040 1,015 8.26% 11.82% 12.48% Householder 55 to 64 Years 576 912 993 7.01% 7.39% 8.64% Householder 65 to 74 Years 489 570 687 6.90% 5.17% 4.71% Householder 75 to 84 Years 481 399 375 2.93% 3.42% 3.24% Householder 85 Years and over 204 264 258 39.2938.6337.98Median Age of Householder Prepared By: © 2011 The Nielsen Company. All rights reserved. Nielsen Solution Center 1 800 866 6511 4Of2Page Prepared For: Property Dynamics Project Code: Brookings, SD Mon Dec 19, 2011Prepared On: _______________________________________________________ Property Dynamics Page E-13 ______________________________________________ January 2012 Brookings, SD © 2011 All rights reserved Nielsen Claritas 1‐Person 2‐Person 3‐Person 4‐Person 5+‐Person Household Household Household Household Household Total $0-10,000 407 148 30 25 8 618 $10,000-20,000 420 238 130 24 23 835 $20,000-30,000 312 160 103 59 15 649 $30,000-40,000 114 165 75 119 35 508 $40,000-50,000 48 64 58 33 3 206 $50,000-60,000 69 6 26 0 44 145 $60,000+ 20 42 116 47 94 319 Total 1,390 823 538 307 222 3,280 1‐Person 2‐Person 3‐Person 4‐Person 5+‐Person Household Household Household Household Household Total $0-10,000 1 10 1 1 1 14 $10,000-20,000 22 0 0 0 0 22 $20,000-30,000 10 7 8 0 0 25 $30,000-40,000 28 0 0 0 0 28 $40,000-50,000 0 24 0 0 0 24 $50,000-60,000 9200 011 $60,000+ 0 11 0 0 0 11 Total 70 54 9 1 1 135 1‐Person 2‐Person 3‐Person 4‐Person 5+‐Person Household Household Household Household Household Total $0-10,000 130 0 0 0 0 130 $10,000-20,000 125 42 0 0 0 167 $20,000-30,000 130 33 0 0 0 163 $30,000-40,000 62 6 0 0 0 68 $40,000-50,000 8 14 0 0 0 22 $50,000-60,000 0000 00 $60,000+ 107 0 32 0 0 139 Total 562 95 32 0 0 689 Under Age 55 Years Five Year Projections ‐ 2016 Renter Households Aged 55‐61 Years Five Year Projections ‐ 2016 Aged 62+ Years www.ribbondata.com HISTA DATA Five Year Projections ‐ 2016 Renter Households Renter Households 12/19/2011_______________________________________________________ Property Dynamics Page E-14 ______________________________________________ January 2012 Brookings, SD © 2011 All rights reserved Nielsen Claritas 1‐Person 2‐Person 3‐Person 4‐Person 5+‐Person Household Household Household Household Household Total $0-10,000 14 5 0 0 0 19 $10,000-20,000 34 13 14 0 0 61 $20,000-30,000 49 15 21 4 8 97 $30,000-40,000 139 22 58 31 13 263 $40,000-50,000 34 67 99 79 30 309 $50,000-60,000 22 104 75 116 71 388 $60,000+ 25 213 289 433 218 1,178 Total 317 439 556 663 340 2,315 1‐Person 2‐Person 3‐Person 4‐Person 5+‐Person Household Household Household Household Household Total $0-10,000 1000 01 $10,000-20,000 0000 00 $20,000-30,000 15 17 0 0 0 32 $30,000-40,000 9 22 9 0 0 40 $40,000-50,000 0 46 17 0 0 63 $50,000-60,000 0 53 5 0 0 58 $60,000+ 0 281 63 11 0 355 Total 25 419 94 11 0 549 1‐Person 2‐Person 3‐Person 4‐Person 5+‐Person Household Household Household Household Household Total $0-10,000 24 0 0 0 0 24 $10,000-20,000 93 14 3 0 0 110 $20,000-30,000 25 58 3 0 0 86 $30,000-40,000 29 62 0 0 0 91 $40,000-50,000 16 95 0 0 0 111 $50,000-60,000 27 99 20 0 0 146 $60,000+ 105 161 6 27 0 299 Total 319 489 32 27 0 867 www.ribbondata.com HISTA DATA Owner Households Under Age 55 Years Current Year Estimates ‐ 2011 Owner Households Current Year Estimates ‐ 2011 Owner Households Aged 55‐61 Years Current Year Estimates ‐ 2011 Aged 62+ Years 12/19/2011_______________________________________________________ Property Dynamics Page E-15 ______________________________________________ January 2012 Brookings, SD © 2011 All rights reserved Nielsen Claritas 1‐Person 2‐Person 3‐Person 4‐Person 5+‐Person Household Household Household Household Household Total $0-10,000 418 158 29 22 7 634 $10,000-20,000 428 250 130 23 22 853 $20,000-30,000 314 166 101 57 16 654 $30,000-40,000 112 168 72 111 33 496 $40,000-50,000 46 67 53 31 2 199 $50,000-60,000 67 5 25 0 43 140 $60,000+ 17 41 103 39 80 280 Total 1,402 855 513 283 203 3,256 1‐Person 2‐Person 3‐Person 4‐Person 5+‐Person Household Household Household Household Household Total $0-10,000 0811 111 $10,000-20,000 21 0 0 0 0 21 $20,000-30,000 9670 022 $30,000-40,000 25 0 0 0 0 25 $40,000-50,000 0 19 0 0 0 19 $50,000-60,000 8200 010 $60,000+ 0 11 0 0 0 11 Total 63 46 8 1 1 119 1‐Person 2‐Person 3‐Person 4‐Person 5+‐Person Household Household Household Household Household Total $0-10,000 119 0 0 0 0 119 $10,000-20,000 116 41 0 0 0 157 $20,000-30,000 112 31 0 0 0 143 $30,000-40,000 52 5 0 0 0 57 $40,000-50,000 7 13 0 0 0 20 $50,000-60,000 0000 00 $60,000+ 90 0 24 0 0 114 Total 496 90 24 0 0 610 www.ribbondata.com HISTA DATA Renter Households Under Age 55 Years Current Year Estimates ‐ 2011 Renter Households Current Year Estimates ‐ 2011 Renter Households Aged 55‐61 Years Current Year Estimates ‐ 2011 Aged 62+ Years 12/19/2011_______________________________________________________ Property Dynamics Page E-16 ______________________________________________ January 2012 Brookings, SD © 2011 All rights reserved Nielsen Claritas 1‐Person 2‐Person 3‐Person 4‐Person 5+‐Person Household Household Household Household Household Total $0-10,000 18 6 0 0 0 24 $10,000-20,000 37 14 15 0 0 66 $20,000-30,000 47 15 21 5 9 97 $30,000-40,000 133 21 55 31 13 253 $40,000-50,000 34 67 99 83 29 312 $50,000-60,000 20 92 72 115 73 372 $60,000+ 27 210 305 463 233 1,238 Total 316 425 567 697 357 2,362 1‐Person 2‐Person 3‐Person 4‐Person 5+‐Person Household Household Household Household Household Total $0-10,000 0000 00 $10,000-20,000 0000 00 $20,000-30,000 17 16 0 0 0 33 $30,000-40,000 8 23 12 0 0 43 $40,000-50,000 0 47 18 0 0 65 $50,000-60,000 0 57 5 0 0 62 $60,000+ 0 305 69 14 0 388 Total 25 448 104 14 0 591 1‐Person 2‐Person 3‐Person 4‐Person 5+‐Person Household Household Household Household Household Total $0-10,000 27 0 0 0 0 27 $10,000-20,000 95 13 3 0 0 111 $20,000-30,000 28 57 3 0 0 88 $30,000-40,000 32 62 0 0 0 94 $40,000-50,000 16 94 0 0 0 110 $50,000-60,000 30 105 22 0 0 157 $60,000+ 109 167 6 29 0 311 Total 337 498 34 29 0 898 Under Age 55 Years Five Year Projections ‐ 2016 Owner Households Aged 55‐61 Years Five Year Projections ‐ 2016 Aged 62+ Years www.ribbondata.com HISTA DATA Five Year Projections ‐ 2016 Owner Households Owner Households 12/19/2011_______________________________________________________ Property Dynamics Page E-17 ______________________________________________ January 2012 Property Dynamics 15625 NE 191st Street ! Woodinville, WA 98072 Phone (425) 489-9780 ! Fax (425) 806-0760 MARKET SURVEYS AND FEASIBILITY STUDIES COMPANY GENERAL INFORMATION Property Dynamics is a sole proprietorship family business that was founded in 1971 by Timothy Fahey. Since then, the company has prepared market and feasibility studies for apartments, condominiums, retirement centers, assisted living care, paraplegic centers, condominium conversions, shopping centers, industrial parks, single family sub-divisions, P.U.D.’s, tax-credit (LIHTC) projects, and Rural Development (FmHA RRH 515/514) projects. Currently, the company is primarily engaged in the preparation of Market Studies for Tax Credit and Rural Development affordable housing projects. Greg Fahey, Market Consultant, has worked with Property Dynamics for 34 years. The company is owned by Greg and Diane Fahey. As of August 31, 2011, studies have been prepared for 1,073 projects in Washington; 181 in Oregon; 100 in California; 94 in Montana; 89 in Arizona; 86 in Wyoming; 83 in Idaho; 39 in Utah; 29 in Colorado; 26 in Alaska; 24 in Nevada; 16 in Nebraska; 10 in New Mexico; 9 in Texas; 8 in North Dakota; 7 each in North Carolina and South Carolina; 6 in Michigan; 4 each in Illinois, Minnesota, and Wisconsin; 3 each in Oklahoma and Kansas; 2 each in Hawaii, Missouri, and West Virginia; 1 each in Alabama and Indiana, for a total of 1,917. By Classification of study, there were 1,162 apartment, including 504 Rural Development & 448 Tax Credit studies; 166 condominiums; 97 condominium conversions; 80 retirement centers; 72 assisted living care; 51 single family sub-divisions; 41 office/warehouses; 27 shopping centers; 18 P.U.D.’s; 14 motels; and 189 special or not classified. From 1973 - 2004, we published a newsletter covering general information about the construction and real estate industries in the state of Washington. It was published six (6) times a year and included issues encompassing rental and vacancy surveys, new condominiums, building permits, population movements, and special studies. The company has provided statistical data and information about the Pacific Northwest for the “U.S. Housing Reports” publication. We also provided condominium information for the “Central Puget Sound Real Estate Report”. _______________________________________________________ Property Dynamics Page E-18 ______________________________________________ January 2012 TAX CREDIT (LIHTC) PROJECTS ON WHICH WE HAVE PREPARED MARKET STUDIES THROUGH AUGUST 2011 ALABAMA: Prichard, Total - 1 ARIZONA: Benson; Buckeye; Bullhead City; Casa Grande; Chino Valley; Cottonwood (2); Douglas (2); Flagstaff; Globe (2); Huachuca City; Mesa; Nogales; Safford; Sierra Vista (5); Taylor; Tucson (5); Winslow, Total - 28 CALIFORNIA: Anderson (3); Arcata (2); Armona; Arvin; Bakersfield (2); Chico (2); Chowchilla; Dixon; Elk Grove; Eureka; Farmersville (4); Fresno(3); Greenfield (4); Hanford; Hesperia (4); Huron; Kerman; Lakeport; Lindsay; Lompoc; Madera; Mendota (3); Mojave; Orange Cove; Oxnard; Parlier; Porterville; Red Bluff; Ridgecrest; Riverbank (2); San Joaquin; Sanger; Sonoma County; Tehachapi; Tulare; Victorville (6); Wasco; Watsonville; Williams; Willow Creek (2); Woodlake, Total - 66 COLORADO: Bayfield; Cortez; Fort Collins (4); Grand Junction; Pagosa Springs (3); Pueblo (4); Rifle, Total - 15 IDAHO: American Falls; Ammon; Blackfoot (3); Buhl; Caldwell; Chubbuck (2); Driggs; Emmett (2); Nampa; Payette (2); Rexburg (2); Rigby; St. Anthony; Salmon(2); Shelley; Twin Falls (4), Total - 26 KANSAS: Chanute; Kansas City; Olathe, Total - 3 MONTANA: Belgrade; Big Fork; Billings (10); Bozeman (4); Butte; Corvallis (2); Darby (3); Dillon; Glendive; Great Falls; Hamilton (5); Helena; Kalispell (3); Lewistown (2); Libby; Lolo; Miles City; Missoula (13); Pablo; Plains; Polson (2); Ronan; Shelby; Somers; St. Regis; Stevensville (3); Superior; White Sulphur; Whitefish; Whitehall, Total - 69 MICHIGAN: Battle Creek; Harrison; Hayes Township; Kalamazoo (3), Total - 6 MISSOURI: St. Ann; Hazelwood , Total - 2 NEBRASKA: Aurora (2); Columbus; Dawson County; Gering (2); Kearney (6); North Platte (2); Omaha; Papillion; Sidney; Waverly, Total - 17 NEVADA: Douglas County; Elko; Jackpot (2); Minden; Pahrump (2); Reno; Winnemucca; West Wendover, Total - 10 NEW MEXICO: Albuquerque (3); Rio Rancho (2), Total - 5 NORTH CAROLINA: Charlotte, Total - 1 NORTH DAKOTA: Bismark; Casselton (3); Dickinson; Grafton; Mayville; Williston, Total - 8 OKLAHOMA Lawton (2); Perkins; Shawnee; Stillwater, Total - 5 OREGON: Astoria; Bend; Brookings (2); Coos Bay; Florence; Grants Pass; Joseph (2); Klammath Falls; Lebanon (2); Lincoln City (2); Medford; Newport (2); Redmond; Sandy; Tillamook; Umatilla (2), Total - 22 UTAH: Brigham City; Cedar City (2); Grantsville; Ogden (3); Salt Lake City; Tooele; West Valley City, Total - 10 SOUTH DAKOTA: Canistota; Huron; Salem; Spearfish, Total - 4 WASHINGTON: Auburn; Bainbridge Island (3); Belfair (2); Bellevue (3); Bremerton; Burien; Cashmere; Centralia; Ephrata (3); Elma; Enumclaw (2); Everett; Federal Way (3); Friday Harbor; Graham; Grandview; Hoquiam; Kingston (2); Leavenworth; Marysville; Mount Vernon (4); Moses Lake (2); Oak Harbor (2); Omak (2); Pasco; Port Hadlock (2); Poulsbo (2); SeaTac; Seattle (3); Selah; Sequim (3); Shoreline; South Bend; Spokane Valley; Tacoma; Tukwila; Vancouver (3); Washougal; White Center; Yakima; Yelm (3), Total - 69 WEST VIRGINIA: Oak Hill; Philippi, Total - 2 WYOMING: Buffalo (2); Casper (11); Cheyenne (8); Cody (2); Douglas (4); Evanston (4); Gillette (10); Green River; Guersney; Jackson (4); Lander (2); Laramie (3); Marbleton; Powell; Sheridan (9); Rawlins; Riverton (3); Rock Springs (7); Thermopolis; Torrington; Worland, Total - 80 SUMMARY OF TAX CREDIT MARKET STUDIES: STATES:21 CITIES: 241 STUDIES: 448_______________________________________________________ Property Dynamics Page E-19 ______________________________________________ January 2012 RURAL DEVELOPMENT (FmHA RRH 515) PROJECTS ON WHICH WE HAVE PREPARED MARKET STUDIES THROUGH 08/11 ALASKA: Haines; Ketchikan (2); Palmer; Sitka; Soldotna; Wasilla (3) Total - 9 ARIZONA: Avondale (2); Arizona City; Buckeye (2); Bullhead City (5); Casa Grande (2); Chino Valley (2); Coolidge (2); Cottonwood (3); Eloy; Florence; Fort Mohave; Goodyear (2); Globe; Green Valley (2); Holbrock; Kingman (3); Lake Havasu City; Miami; Page; Parker; Payson; Pinetop; Prescott Valley (2); Quartzsize; Show Low (2); Snowflake; Thacher. Total - 44 CALIFORNIA: Arcata; Arvin; Burney; Clearlake; Dixon; Dunsmuir; Farmersville; Grass Valley; Healdsburg; Hollister; Ione; Lakeport; Nice; Oakley; Oxnard; Patterson; Polluck Pines; Red Bluff; St. Helena; Watsonville; West Point; Williams. Total - 24 COLORADO: Brighton; Cortez; Delta; Durango; Fort Morgan; Silverthorn. Total - 6 FLORIDA: Ferdindina Beach; Flagler Beach; Orange City (2); Sun City Center; Winter Garden; Zephyrhills. Total - 7 HAWAII: Kaloa, Kauai; Kehei, Maui. Total - 2 IDAHO: Bonners Ferry (2); Burley; Caldwell (3); Emmett; Grangeville; Heyburn; Jerome; Kellogg; New Plymouth; Payette; Pinehurst; Post Falls (2); Priest River (2); Rexburg (3); Rigby; Salmon; Sandpoint (3); St. Maries (2); Sugar City; Wallace; Weiser (2); Wendell. Total - 33 MONTANA: Big Fork; Columbia Falls (2); Hamilton; Kalispell (3); Polson; White Fish. Total - 9 NEVADA: Boulder City (2); Carlin; Douglas County; Minden; Pahrump; Winnemucca. Total - 7 NEW MEXICO: Belen Total - 1 OREGON: Ashland; Astoria (3); Baker; Bandon (3); Boardman (2); Brookings (3); Burns; Canby (2); Cannon Beach (2); Canyonville; Cave Junction (2); Central Point; Cottage Grove; Creswell; Dallas; The Dalles; Eagle Point (2); Florence (3); Gold Beach (2); Grants Pass (4); Hood River (3); Independence; Jacksonville; Jon Day; LaGrande (2); Lebanon; Lincoln City (3); Madras (3); McMinnville (4); Mollalla; Monmouth; Mosier; Newberg (3); Newport (2); North Bend; Oak Ridge; Ontario (4); Phoenix (2); Philomath; Port Orford; Prineville (2); Rainier; Redmond (4); Rogue River (5); Sandy (2); Scappoose; Seaside (3); Shady Cove; Sheridan; Silverton; Sisters; St. Helens (2); Sweet Home (3); Talent (3); Tillamook (5); Umatilla; Union (2); Vale; Wheeler; Wilsonville (2). Total - 116 UTAH: Blanding (3); Brigham City; Cedar City (4); Gunnison; Hurricane (2); LaVerkin; Manti; Moab; Payson (4) Richfield (2); Smithfield; St. George; Tooele. Total - 23 WASHINGTON: Anacortes (5); Arlington (3); Battle Ground (5); Belfair (3); Brewster; Buckley (3); Burlington (3); Carnation; Cashmere; Centralia (7); Chelan (3); Chehalis (4); Cheney; Cle Ellum (2); Colville (7); Connell; Coupeville (2); Darrington; Duvall; Eatonville; Enumclaw (3); Elma (2); Everson (2); Ellensburg (6); Ephrata (2); Ferndale (3); Forks; Friday Harbor (4); Frontier Village (2); Grandview (6); Graham; Granger; Gig Harbor (3); Goldendale (2); Illwaco (3); Langley (3); LaCenter; LaConner (2); Leavenworth (3); Lopez; Lynden (4); Lake Stevens (2); Marysville (4); McCleary (2); Monroe (2); Morton (2); Montesano; Moses Lake (4); Mount Vernon (3); Moxee; Napavine; Newport (3); North Bend (3); Oak Harbor (8); Ocean Shores; Okanogan (3); Omak (7); Oroville; Orting; Othello; Prosser; Port Angeles (5); Port Orchard (3); Port Townsend (4); Poulsbo (4); Quilcene; Quincy (4); Raymond; Rainier; Ridgefield; Rochester; Roslyn; Republic (2); Stillaquamish; Selah (4); Sequim (8); Sedrow Wooley (5); Shelton (4); Stanwood (3); South Bend; Sunnyside (9); Sumas; Sultan (2); Tanasket; Tenino (2); Toppenish (3); Twisp (2); Vashon Island (2); Westport; Winslow (3); Wapato (2); West Sound; Winthrop; Woodland; Yelm (3); Zillah. Total - 226 SUMMARY OF RURAL DEVELOPMENT (FmHA RRH 515) MARKET STUDIES: STATES: 13 CITIES:272 STUDIES:505_______________________________________________________ Property Dynamics Page E-20 ______________________________________________ January 2012 City of Brookings January 24, 2012 283 17. Adjourn