091018 EDA Meeting Packet
EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday, September 10, 2018
President Kathi Hemken
Commissioner John Elder
Commissioner Cedrick Frazier
Commissioner Andy Hoffe
Commissioner Jonathan London
1. Call to order – EDA Meeting of September 10, 2018
2. Roll call
3. Approval of Minutes:
August 13, 2018
4. Resolution authorizing the proposed levy of a special levy benefit pursuant to
Minnesota Statutes, Section 469.033, subdivision 6 and approval of a preliminary
budget for fiscal year 2019
5. Resolution approving contract with Robinson Environmental, Inc. for hazardous
material abatement at 5355 Oregon Avenue (Improvement Project No. 1018)
6. Resolution approving purchase agreement for the acquisition of 5212 Pennsylvania
Avenue North (Improvement Project No. 1025)
7. Resolution approving purchase and redevelopment agreement with Houston
Homes, Inc. for the sale of 7311 62nd Avenue North (Improvement Project No. 1022)
7. Adjournment
EDA Meeting
Page 1 August 13, 2018
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes August 13, 2018
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 8:00 p.m.
ROLL CALL Present:
Kathi Hemken, President
John Elder, Commissioner
Andy Hoffe, Commissioner
Eric Lammle, Commissioner
Jonathan London, Commissioner
Staff Present:
Kirk McDonald, City Manager
Aaron Chirpich, Community Development Specialist
Tim Fournier, Police Chief
Valerie Leone, City Clerk
Jeff Sargent, Director of Community Development
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner London, seconded by Commissioner Hoffe,
to approve the minutes of July 23, 2018. All present voted in favor. Motion
carried.
IMP. PROJECT 1022
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
contract with Nitti Rolloff Services, Inc. for hazardous material abatement,
demolition of site improvements, utility work, tree removal, well sealing, and site
grading of 7311 62nd Avenue North (improvement project no. 1022).
Mr. Aaron Chirpich, community development specialist, stated the EDA recently
acquired the single-family home located at 7311 62nd Avenue North as part of the city’s
scattered site housing program. He stated the EDA directed staff to take necessary steps
in preparing the home for demolition to facilitate redevelopment of the property. He
explained this item approves a contract with Nitti Rolloff Services for $28,000 for
hazardous material abatement, demolition of site improvements, utility work, tree
removal, well sealing, and site grading. He stated after the home is demolished, the
vacant lot will be sold to a developer for construction of a new home. He stated the
project will be funded upfront by EDA funds and will be reimbursed with CDBG funds
after the lot is sold.
Mr. Chirpich reported two bids were received for the work and the low bid was
submitted by Nitti Rolloff Services. He indicated the city has utilized the services of
Nitti Rolloff Services in the past with good results.
RESOLUTION 2018-12
Item 4
Commissioner Elder introduced the following resolution and moved its adoption
“RESOLUTION APPROVING CONTRACT WITH NITTI ROLLOFF
SERVICES, INC. FOR HAZARDOUS MATERIAL ABATEMENT,
EDA Meeting
Page 2 August 13, 2018
DEMOLITION OF SITE IMPROVEMENTS, UTILITY WORK, TREE
REMOVAL, WELL SEALING, AND SITE GRADING OF 7311 62ND AVENUE
NORTH (IMPROVEMENT PROJECT NO. 1022).” The motion for the adoption
of the foregoing resolution was seconded by Commissioner London, and upon
vote being taken thereon, the following voted in favor thereof: Hemken, Elder,
Hoffe, Lammle, London; and the following voted against the same: None;
Abstained: None; Absent: None; whereupon the resolution was declared duly
passed and adopted, signed by the president which was attested to by the
executive director.
ADJOURNMENT Motion was made by Commissioner London, seconded by Commissioner Hoffe,
to adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 8:04 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
I:\RFA\FINANCE\Budget\2019\q-EDA property tax levy 9.10.18.docx
Request for Action
September 10, 2018
Approved by: Kirk McDonald, City Manager
Originating Department: City Manager
By: Kirk McDonald, City Manager
Agenda Title
Resolution authorizing the proposed levy of a special benefit levy pursuant to Minnesota Statutes, Section
469.033, subdivision 6 and approval of a preliminary budget for fiscal year 2019
Requested Action
Staff requests the EDA to adopt the attached resolution establishing the EDA levy for the 2019 budget.
Background
Historically the amount of the EDA levy was included in the city’s proposed levy. At AEM’s
recommendation, beginning with the 2015 budget year, a separate resolution has been adopted by the EDA
for the EDA levy. The amount of the EDA levy was at $85,000 for several years and was increased in 2014 and
2017. An increase of $100,000 is recommended for 2019 to support the scattered site housing program due to a
decrease in CDBG funding.
2013 - $85,000
2014 - $150,000 (an increase of $65,000 to fund the CD assistant position)
2015 - $150,000
2016 - $150,000
2017 - $200,000 (an increase of $50,000 for increased funding to scattered site housing program)
2018 - $200,000
2019 - $300,000 (an increase of $100,000 to support scattered site housing program)
Attachments
•EDA Resolution
Agenda Section
EDA
Item Number
4
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2018-
RESOLUTION AUTHORIZING THE PROPOSED LEVY OF
A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES,
SECTION 469.033, SUBDIVISION 6 AND APPROVAL
OF A PRELIMINARY BUDGET FOR FISCAL YEAR 2019
WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the City Council of
the City of New Hope created the City of New Hope Economic Development Authority (the “Authority”); and
WHEREAS, pursuant to the EDA Act, the City Council granted to the Authority all of the powers and duties
of a housing and redevelopment authority under the provisions of the Minnesota Statues, Sections 469.001 to
469.047 (the “HRA Act”); and
WHEREAS, Section 469.033, subdivision 6, of the HRA Act permits the Authority to levy and collect a special
benefit levy of up to .0185 percent of estimated market value in the City upon all taxable real property within
the City; and
WHEREAS, the Authority desires to levy a special benefit levy in the amount of up to .0185 percent estimated
market value of the City for taxes payable in 201 9; and
WHEREAS, pursuant to Minnesota Statues, Section 275.065, the Authority is required to adopt a proposed
budget and a proposed tax levy and submit the same to the County Auditor by September 30; and
WHEREAS, the Authority has before it the amount of the proposed levy for collection in 2019, subject to any
adjustments in the final levy.
NOW THEREFORE BE IT RESOLVED by the members of the New Hope Economic Development Authority:
1. The proposed budget of $300,000 for the operations of the Authority in fiscal year 2019, as presented for
consideration by the City Council, is hereby in all respects approved, subject to final approval by the
Authority before certification of the tax levy under Minnesota Statutes, Section 275.07.
2. Staff of the Authority are hereby authorized and directed to file the proposed budget with the City in
accordance with Minnesota Statues, Section 469.033, Subdivision 6.
3. The proposed special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, is
hereby approved in maximum amount equal to .01813 percent of estimated market value in the City of
New Hope, currently estimated to be $1,792,927,900 with respect to taxes payable in calendar year 2018,
subject to final approval by the Authority before certification of the special be nefit levy pursuant to
Minnesota Statues, Section 275.07.
4. Staff of the Authority are hereby authorized and directed to seek the approval by resolution of the City
Council of the levy of special benefit taxes payable in 201 9 and to take such other actions as are necessary
to bring before the Board the final budget and levy to be sent to the county auditor by December 28, 2018
(five working days after December 20, 2018).
Adopted by the Economic Development Authority on September 10, 2018.
___________________________________________
President
Attest:
Executive Director
I:\RFA\COMM DEV\2018\EDA\9-10-18\5355 Oregon\EDA 5355 Oregon Approve Asbestos Removal Contract Project 1018.docx
Request for Action
September 10, 2018
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Aaron Chirpich, CD Specialist
Agenda Title
Resolution approving contract with Robinson Environmental, Inc. for hazardous material abatement at 5355
Oregon Avenue North (improvement project no. 1018)
Requested Action
Staff requests approval of a resolution awarding a contract for the abatement of hazardous materials at
5355 Oregon Avenue North, to the low and responsible bidder, Robinson Environmental, Inc. in the
amount of $3,149.20.
Policy/Past Practice
When public bidding is required as part of the Scattered Site Housing Program, it is practice of staff to
present contracts to the EDA for consideration.
Background
The EDA has recently acquired the single-family home located at 5355 Oregon Ave N, as part of the Scattered
Site Housing Program. The EDA has directed staff to take the necessary steps in preparing the home for
demolition in order to facilitate redevelopment of the property. Recently, a demolition survey was completed
on the home in order to identify any hazardous materials located on the property. Before the home can be
torn down, all hazardous materials identified in the demolition survey must be removed. Requests for
hazardous material abatement quotes were sent to four contractors, and the EDA received two quotes. The
bid results are as follows:
Twin Cities Abatement Technologies, Inc. $5,980
Robinson Environmental, Inc. $3,149.20
Experience with Recommended Contractor
The EDA has worked with Robinson Environmental on three previous scattered site housing projects.
Robinson Environmental was selected by the EDA for hazardous material abatement work at 6065 Louisiana
Avenue North, 5400 Yukon Avenue North, and 4511 Boone Avenue North. Staff had a good experience
working with the contractor and has no concerns with hiring them for this project.
Funding
EDA funds will be used to pay for all work associated with this contract award.
Attachments
Resolution
Bids Received
Demolition Survey (specifications)
Agenda Section
EDA
Item Number
5
EDA RESOLUTION NO. 18-___
RESOLUTION APPROVING CONTRACT WITH ROBINSON ENVIRONMENTAL,
INC. FOR HAZARDOUS MATERIAL ABATEMENT
AT 5355 OREGON AVENUE NORTH
(IMPROVEMENT PROJECT NO. 1018)
BE IT RESOLVED by the Economic Development Authority in and for the City of New
Hope as follows:
WHEREAS, the Economic Development Authority in and for the City of New Hope
(“EDA”) purchased certain real property located at 5355 Oregon Avenue North, New Hope, MN
and legally described as “Lot 1, Block 2, Sunset Heights, Hennepin County, Minnesota” (the
“Property”) with the intentions of redeveloping the Property; and
WHEREAS, City staff intends to redevelop the Property in accordance with the City’s
scattered site housing program and policy and return the Property to the tax rolls for the benefit of
all taxing jurisdictions; and
WHEREAS, City staff is exercising due diligence to correct the Property’s blighted
condition by performing an environmental cleanup of the Property (the “Work”) to be followed by
the demolition of the buildings on the Property and site grading of the Property; and
WHEREAS, Robinson Environmental, Inc. submitted a proposal that meets all of the
Project Specifications as set forth on the attached Exhibit A and is the low bid; and
WHEREAS, it is in the best interests of the EDA to enter into a contract with Robinson
Environmental, Inc. for the purpose of performing the Work; and
WHEREAS, City staff is hereby seeking approval from the EDA of the selection of
Robinson Environmental, Inc. as the duly qualified contractor to perform the Work.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of New Hope as follows:
1. That the above recitals are incorporated herein by reference.
2. That selection of Robinson Environmental, Inc. as the Contractor to complete the
abatement of all hazardous materials pursuant to the Project Specifications is
approved, it being in the best interest of the EDA and the City to prepare the
Property for redevelopment in accordance with the City’s scattered site housing
program and policy.
3. That the payment of $3,149.20 to Robinson Environmental, Inc. to perform the
Work is hereby approved.
4. The President, Executive Director and New Hope City staff are authorized and
directed to sign all appropriate documents, and to take whatever additional actions
are necessary or desirable, to complete the abatement of hazardous materials
located at the Propert y in accordance with the contract to be prepared by the City
Attorney.
Dated the ____ day of September, 2018.
____________________________________
Kathi Hemken, President
Attest: _____________________________
Kirk McDonald, Executive Director
1
From:Tim Robinson <robinsonenviro@aol.com>
Sent:Friday, August 31, 2018 11:30 AM
To:Chirpich Aaron
Subject:Asbestos
Robinson Environmental, Inc.
4716 67th Ave. N.
Brooklyn Center, MN 55429
Ph: 763-566-4242 - Fax: 763-566-4681
Date: 08/31/2018
Proposal For: City of New Hope
ATTN: Aaron
Robinson Environmental Inc. will perform asbestos removal at 5355 Oregon Ave N New Hope, MN. Using licensed asbestos
workers, following all Minnesota OSHA, MDH and MPCA rules and regulations for the removal of asbestos. Robinson
Environmental Inc. will furnish all labor, materials, equipment disposal and Insurance for project.
SCOPE OF Work: Removal of asbestos floor tile, mastic & sub floor.
Thermostat, water heater, furnace, washer/dryer, smoke detectors
PRICE: 3,149.20
-
Timothy Robinson
I:\RFA\COMM DEV\2018\EDA\9-10-18\5212 Pennsylvania\Q & R - 5212 Pennsylvania Ave Acquisition 9-10-18.docx
Request for Action
September 10, 2018
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Aaron Chirpich, CD Specialist
Agenda Title
Resolution approving purchase agreement for the acquisition of 5212 Pennsylvania Avenue North
(improvement project no. 1025)
Requested Action
Staff requests the EDA to authorize entering into a Purchase Agree ment for the acquisition of 5212
Pennsylvania Avenue North, for $145,500 (purchase price) plus any associated fees.
Policy/Past Practice
In the past, the EDA has successfully acquired vacant distressed properties as part of the city’s scattered site
housing program.
5212 Pennsylvania Avenue North
The EDA has directed community development staff to pursue the acquisition of distressed and functionally
obsolete single-family homes as part of the city’s scattered site housing program. 5212 Pennsylvania Avenue
is located in one of the EDA’s priority redevelopment neighborhoods, just north of the city’s vacant single-
family development site known as the Railroad property.
The home has not seen many upgrades since built, and does not meet the expectations of many buyers in the
market. Rehabilitation of the home does not make economic sense, as adding on to the home would prove
cost prohibitive. Staff feels that the best use of the home and site would be demolition to facilitate the
construction of a new single-family home.
Staff became aware of the opportunity to purchase 5212 Pennsylvania Avenue following the completion of a
recent Point-of-Sale inspection for the property. When staff contacted the owner, she expressed an interest in
working with the city for the sale of the property and requested staff to work with her real estate agent who
was in the process of preparing the home to be listed. Staff was able to arrange a showing of the home before
it was offered on the open market. Following the showing, the seller conveyed an asking price of $145,500.
The 2018 tax assessed value has been set at $154,000 by Hennepin County. Staff discussed the project budget
with the city manager and offered to purchase the home for the asking price. The offer was accepted by the
seller contingent upon EDA review and approval.
Funding
Funding for the acquisition and all costs associated with demolition of this home will come from EDA
reserves. The house would likely qualify for the use of CDBG grant funds. However, the entire 2018 CDBG
allocation for scattered site redevelopment has already been dedicated to other projects within the Scattered
Site Housing program. Despite the unavailability of grant funds, staff believes that the project is worth
pursuing, as the home is located in a priority redevelopment area, and in close proximity to the city’s
Railroad development site. The lack of CDBG resources will require that the projected value gap of $112,850
Agenda Section
EDA
Item Number
6
Request for Action, Page 2
be covered by EDA reserve funds. However, the increased taxable value of a new home on the site would
help recover the financial loss over a period of years. A copy of the full project budget is attached for review.
Recommendation
Staff is seeking approval of the acquisition of 5212 Pennsylvania Avenue. Staff recommends the EDA approve
the attached resolution prepared by the City Attorney and terms of the attached purchase agreement.
Attachments
Resolution
Location Map
Project Budget
County Tax Information
Pictures of Home
Sample Lot Layout
Purchase Agreement
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 18-___
RESOLUTION APPROVING PURCHASE AGREEMENT
FOR THE ACQUISITION OF 5212 PENNSYLVANIA AVENUE NORTH
(IMPROVEMENT PROJECT NO. 1025)
BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope
(“EDA”) as follows:
WHEREAS, on September 22, 2014, the City Council adopted Resolution No.14-126 at the City
Council meeting authorizing City community development staff to actively pursue the acquisition of
distressed single family homes for potential purchase by the EDA, as part of the City’s scattered site housing
program;
WHEREAS, the City Council has directed City staff to negotiate for the terms most favorable to
the City and EDA, and the execution of purchase agreements so as to secure purchase rights for these real
properties, contingent on the review and approval of the EDA to the terms of the purchase agreements;
WHEREAS, City staff have identified the opportunity to purchase certain real property located at
5212 Pennsylvania Avenue North, New Hope, MN, P.I.D. 08-118-21-21-0052, and legally described as
Lot 7, Block 5, Sunset Heights Addition, Hennepin County, Minnesota (the “Property”) from Alice A.
Smith (“Seller”);
WHEREAS, the house located on the Property was built in 1953 and has a functionally obsolete
floor plan and is in need of substantial rehabilitation and renovation due to deferred maintenance and
general lack of upgrades;
WHEREAS, City staff believes that the best use of the Property is demolition in order to maximize
the tax base by making the lot available for the development of a new residential housing unit;
WHEREAS, the Property will be acquired with EDA funds;
WHEREAS, it is in the best interest of the EDA to purchase the Property from Alice A. Smith, in
order to redevelop the Property in accordance with the City’s scattered site housing program and policy;
and
WHEREAS, City staff is hereby seeking approval from the EDA of the Purchase Agreement,
subject to the review and approval by the City Attorney of proper title evidence and other terms relating to
the closing on the sale of the Property.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for
the City of New Hope as follows:
1. That the above recitals are incorporated herein by reference.
2. It is in the best interest of the EDA to purchase the Property for demolition and
redevelopment in accordance with the City’s scattered site housing program and policy.
3. That the purchase of the Property by EDA from Seller, for a sum of $145,500.00, with
other terms and conditions as set forth in the Purchase Agreement attached hereto as
Exhibit A, is approved subject to the review and approval by the City Attorney of proper
title evidence and other terms relating to the closing on the sale of the Property.
4. The City and EDA shall use due diligence for demolishing the structure located on the
Property and conducting any necessary cleanup of the Property to pursue redevelopment
and return the Property to the tax rolls for the benefit of all taxing jurisdictions.
5. The President and Executive Director and the New Hope City staff are authorized and
directed to sign all appropriate documents, and to take whatever additional actions are
necessary or desirable, to complete the purchase of the Property in accordance with the
Purchase Agreement.
Dated the 10th day of September, 2018.
____________________________________
Kathi Hemken, President
Attest: _____________________________
Kirk McDonald, Executive Director
Exhibit A
Purchase Agreement
See attached.
P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11429 5212 Pennsylvania Ave N\Resolution approving purchase by EDA.docx
I:\RFA\COMM DEV\2018\EDA\9-10-18\7311 62nd\RFA - Sale of Lot at 7311 62nd 9-10-18 Project 1022.docx
Request for Action
September 10, 2018
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Aaron Chirpich, CD Specialist
Agenda Title
Resolution approving purchase and redevelopment agreement with Houston Homes, Inc. for the sale of 7311
62nd Avenue North (improvement project no. 1022).
Requested Action
Staff requests that the EDA approve a resolution approving the purchase and redevelopment agreement for
the sale of the EDA-owned property located at 7311 62nd Avenue North.
Policy/Past Practice
Proposals for the redevelopment of EDA-owned scattered site lots are reviewed by the EDA prior to
executing a contract with the preferred buyer/builder.
Background
Staff sent Request for Proposals (RFPs) to more than 20 builders marketing the lot located at 7311 62nd
Avenue. The non-negotiable sales price was set at $55,000. The EDA received proposals from the following
three builders:
Tollberg Homes, LLC
Novak-Fleck, Inc. (submitted two separate proposals)
Houston Homes, Inc.
Staff reviewed the proposals with the city manager and designated Houston Homes as the “preferred by
staff” builder. However, staff would like to review the base characteristics and attributes of each proposed
home to ensure that all proposals are considered by the EDA. The base criteria listed below were used by
staff to assess each proposal.
Houston Homes Overview
Split-entry home design
Above-average curb appeal
High-level trim package for the cabinets, flooring, doors, and fixtures
Gas fireplace on lower level
Four bedrooms
Three-car garage
Two full bathrooms
2,000 finished square feet
Typical exterior finishes, vinyl siding with cultured stone accents
Anticipated sales price = $299,900
Agenda Section
EDA
Item Number
7
Request for Action, Page 2
Tollberg Homes Overview
Split-entry home design
Above-average curb appeal
Mid-level trim package for cabinets, flooring, doors, and fixtures
Four bedrooms
Two-car garage
Two full bathrooms
1,850 finished square feet
Typical exterior finishes, vinyl siding with cultured stone accents
Anticipated sales price = $300,000
Novak-Fleck Overview (Option 1)
Split-entry home design
Above-average curb appeal
Mid-level trim package for cabinets, flooring, doors, and fixtures
Three bedrooms
Two-car garage
One full bath, and one ¾ bath
1,745 finished square feet
Typical exterior finishes, vinyl siding with cultured stone accents
Anticipated sales price = $285,000
Novak-Fleck Overview (Option 2)
Split-entry home design
Average curb appeal
Mid-level trim package for cabinets, flooring, doors, and fixtures
Three bedrooms
Three car garage
One full bath, and one ¾ bath
1,963 finished square feet
Typical exterior finishes, vinyl siding with cultured stone accents
Anticipated sales price = $299,500
Summary Rationale for Selecting Houston Homes
In the opinion of staff, all four proposals are very similar, and it was difficult to select a clear leader from the
group. However, staff believes that the following characteristics of the Houston Homes proposal set it apart
from the others:
Largest amount of finished square feet
Three-car garage
Four bedrooms
High-level trim package for the cabinets, flooring, doors, and fixtures
Unique amenities, such as the gas fireplace
Request for Action, Page 3
A very competitive anticipated sales price of $299,000
Experience with Recommended Builder
The EDA has not previously sold a scattered site lot to Houston Homes. Houston Homes is a moderate sized
builder/developer that has recently built several high-end homes in the cities of Monticello, Maple Grove,
and Hanover.
Development Agreement and Next Steps
Staff has worked with the city attorney and the buyer to draft a purchase and redevelopment agreement for
the sale of the lot. The agreement ensures that the provisions set forth in the RFP will be met and sets the
purchase price of the lot at $55,000. The agreement included in the attachments is considered complete by
staff and the city attorney. However, some minor revisions may be necessary once fully reviewed by the
buyer. Any substantial changes to the agreement would be brought to the EDA for approval. Once the
agreement is fully executed, staff anticipates that the closing of the lot sale will take place in October, 2018.
Recommendation
Staff recommends that the EDA approve the resolution approving the purchase and redevelopment
agreement for the sale of 7311 62nd Avenue North to Houston Homes, Inc.
Attachments
Resolution
Proposals
RFP for Lot Sale
Draft Purchase and Redevelopment Agreement
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 18-___
RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT
AGREEMENT WITH HOUSTON HOMES, INC. FOR THE
SALE OF 7311 62ND AVENUE NORTH
(IMPROVEMENT PROJECT NO. 1022)
BE IT RESOLVED by the Economic Development Authority in and for the City of New
Hope (“EDA”) as follows:
WHEREAS, the EDA purchased that certain real property located at 7311 62nd Avenue
North, New Hope, MN, and legally described in the attached Exhibit A (the “Property”) on May
31, 2018, with the intention of razing the existing house and all site improvements in preparation
of the sale of the lot for the construction of a new single family home; and
WHEREAS, in response to a Request for Proposal (“RFP”) sent by New Hope City staff
to various builders, the EDA received an offer from Houston Homes, Inc. a Minnesota corporation
(“Houston Homes”) regarding the sale and redevelopment of the Property; and
WHEREAS, the EDA arrived at an agreement with Houston Homes, to sell the Property
for the purchase price of $55,000.00 upon all of the terms set forth in the RFP; and
WHEREAS, the EDA has accepted Houston Homes’ offer and has presented a draft of the
Purchase and Redevelopment Agreement to Houston Homes, for its review, a copy of which is
attached hereto as Exhibit B (“Purchase and Redevelopment Agreement”) and incorporated herein
by reference; and
WHEREAS, it is in the best interest of the EDA to sell the Property to Houston Homes
for the sum of $55,000.00, in order for Houston Homes to redevelop and build a new single
family home on the Property in accordance with the City’s scattered site housing program and
policy; and
WHEREAS, the City staff is hereby seeking approval from the EDA of the Purchase and
Redevelopment Agreement, subject to other terms relating to the closing on the sale of the
Property.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of New Hope as follows:
1. That the above recitals are incorporated herein by reference.
2. That the sale of the Property by the EDA to Houston Homes, for the purchase price
of $55,000.00, with other terms and conditions as set forth in the Purchase and
Redevelopment Agreement attached hereto as Exhibit B, is approved subject to the
review and approval by the City Attorney of the final language and exhibits to the
Purchase and Redevelopment Agreement relating to the closing on the sale of the
Property, it being in the best interest of the EDA to sell the Property for
redevelopment and construction of a single-family home in accordance with the
City’s scattered site housing program and policy.
3. The EDA shall use due diligence for selling the Property to Houston Homes, for
the construction of a single-family home, so as to return the Property to the tax rolls
for the benefit of all taxing jurisdictions.
4. The President, Executive Director and New Hope City staff are authorized and
directed to sign all appropriate documents, and to take whatever additional actions
are necessary or desirable, to complete the sale of the Property in accordance with
the Purchase and Redevelopment Agreement.
Dated the 10th day of September 2018.
____________________________________
Kathi Hemken, President
Attest: _____________________________
Kirk McDonald, Executive Director