111318 EDA Meeting Packet
EDA MEETING
City Hall, 4401 Xylon Avenue North
Tuesday, November 13, 2018
President Kathi Hemken
Commissioner John Elder
Commissioner Cedrick Frazier
Commissioner Andy Hoffe
Commissioner Jonathan London
1. Call to order – EDA Meeting of November 13, 2018
2. Roll call
3. Approval of Minutes:
October 22, 2018
4. Resolution approving contract with Leadens Excavating, Inc. for demolition of site
improvements, tree removal, and site grading of 5355 Oregon Avenue North
(improvement project no. 1018)
5. Resolution approving purchase agreement for the acquisition of 7227 62nd Avenue
North (improvement project no. 1028)
6. Resolution approving purchase and redevelopment agreement with Great Buy
Homes, Inc. for the sale of 7215 62nd Avenue North (improvement project no. 1023)
7. Adjournment
EDA Meeting
Page 1 October 22, 2018
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes October 22, 2018
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 7:51 p.m.
ROLL CALL Present:
Kathi Hemken, President
John Elder, Commissioner
Cedrick Frazier, Commissioner
Andy Hoffe, Commissioner
Jonathan London, Commissioner
Staff Present:
Kirk McDonald, City Manager
Aaron Chirpich, Community Development Specialist
Tim Fournier, Police Chief
Valerie Leone, City Clerk
Chris Long, City Engineer
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 Frazier,
to approve the minutes of September 10, 2018. All present voted in favor. Motion
carried.
IMP. PROJECT 1023
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
contract with JACON, LLC for hazardous material abatement, demolition of site
improvements, utility work, tree removal, well sealing, and site grading of 7215
62nd Avenue North (improvement project no. 1023).
Mr. Aaron Chirpich, community development specialist, explained the EDA
recently acquired the single-family home located at 7215 62nd Avenue North as
part of the scattered site housing program. He asked the EDA to consider
awarding a contract with JACON, LLC for work related to preparing the home for
demolition in order to facilitate redevelopment of the property. He stated the
contractor performed well on a past project, and staff recommends approving the
bid of $17,900.
RESOLUTION 2018-17
Item 4
Commissioner Frazier introduced the following resolution and moved its
adoption “RESOLUTION APPROVING CONTRACT WITH JACON, LLC FOR
HAZARDOUS MATERIAL ABATEMENT, DEMOLITION OF SITE
IMPROVEMENTS, UTILITY WORK, TREE REMOVAL, WELL SEALING,
AND SITE GRADING OF 7215 62ND AVENUE NORTH (IMPROVEMENT
PROJECT NO. 1023).” The motion for the adoption of the foregoing resolution
was seconded by Commissioner Hoffe, and upon vote being taken thereon, the
following voted in favor thereof: Hemken, Elder, Frazier, Hoffe, London; and the
following voted against the same: None; Abstained: None; Absent: None;
EDA Meeting
Page 2 October 22, 2018
whereupon the resolution was declared duly passed and adopted , signed by the
president which was attested to by the executive director.
KENLAWN CO.
SNOW REMOVAL
AND
MAINTENANCE
CONTRACT
Item 5
President Hemken introduced for discussion EDA Item 5, Resolution approving
contract for snow removal and maintenance services with Kenlawn Co.
Mr. Jeff Sargent, community development director, stated this item relates to a
one-year contract for snow removal and landscaping/maintenance services along
Xylon Avenue North between 42nd and 45th avenues and landscaping services
along 45th Avenue North between Xylon and Winnetka avenues with Kenlawn
Lawn & Landscape for $32,412.
Mr. Sargent explained the Xylon Avenue streetscape improvement project was
approved in conjunction with the construction of the Hy-Vee grocery store, the
first new development in the City Center zoning district. The streetscape project
included many elements that were new to the city, including a civic plaza, arbors,
raised planters, hanging plants, trash receptacles, and passive seating areas. Due
to other priorities and the level of service required to manage and maintain the
City Center area throughout all seasons, the public works department was unable
to maintain the area, and the city utilized an independent contractor for
maintenance. Mr. Sargent also explained the plants, shrubs, and trees that were
originally installed as part of the Xylon Avenue streetscape improvements by the
Margolis Company were under warranty through the summer of 2018. The
warranty included the trimming, pruning, and replacement of dead plants,
shrubs, and trees, and the installation of wood chips annually. With the expiration
of that warranty, the scope of work required for the area has increased
substantially. As a result, staff requested bids from ten landscaping/snow removal
contractors for 2019, and two bids were received. He stated staff recommends
awarding the contract to Kenlawn Co. for $32,412 per year. Mr. Sargent explained
that the cost for services is higher than the 2018 contract but the scope of work has
increased substantially. He reported that Kenlawn Co. is a well-established
business based in New Hope. He also noted staff has received positive feedback
from Kenlawn’s customers.
President Hemken questioned the need to outsource the work. Mr. Sargent
explained that it is less expensive to hire a contractor than to hire additional staff
for the public works department.
Commissioner London stated a $32,000 maintenance contract seems excessive. He
noted that the snow removal portion of the contract is quoted at $1,458/month
year-round instead of the winter months only. He agreed the current company is
not providing adequate maintenance and noted Kenlawn is a good company.
Mr. Kirk McDonald, city manager, emphasized the importance of maintaining the
City Center area. He recommended awarding the contract to determine the
performance of Kenlawn Co. He commented that next July the campus area will
expand to include landscaping maintenance of the new police/city hall facility.
Mr. Sargent mentioned several of the plantings in the City Center area are
overgrown and the entire area requires improved oversight by a professional lawn
maintenance company.
EDA Meeting
Page 3 October 22, 2018
RESOLUTION 2018-18
Item 5
Commissioner Elder introduced the following resolution and moved its adoption
“RESOLUTION APPROVING CONTRACT FOR SNOW REMOVAL AND
MAINTENANCE SERVICES WITH KENLAWN CO.” The motion for the
adoption of the foregoing resolution was seconded by Commissioner Hoffe, and
upon vote being taken thereon, the following voted in favor thereof: Hemken,
Elder, Frazier, Hoffe; and the following voted against the same: London;
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.
AMENDMENT 1 TO
CEE LOAN
ORIGINATION
AGREEMENT
Item 6
President Hemken introduced for discussion E DA Item 6, Resolution approving
Amendment 1 to Loan Origination Agreement between Center for Energy and
Environment and EDA.
Mr. Jeff Sargent, community development director, explained the current
agreement with the Center for Energy and Environment (CEE) for housing
loan/grant programs to New Hope residents expires on December 31, 2018. He
stated at the September 17 work session staff discussed proposed changes to the
Revolving Loan Program, Emergency Deferred Loan Program, and Interest
Subside Grant Program. He recommended renewing the revised three-year
contract with CEE, from January 1, 2019, to December 31, 2021 ; allocating $80,000
to the program for the three-year duration of the contract; allocating any
remaining funds from the previous contract ($21,000 available as of October 8,
2018) towards the $80,000.; and as payments and interest are received from the
Revolving Loan Program and Emergency Deferred Loan Program, the funds be
revolved back into the CEE loan fund to be made available to the public; rather
than allocating a certain amount of money to each individual program, allowing
residents to utilize the $80,000 available for any of the programs that are offered.
Commissioner London encouraged staff to find ways to promote the program to
the community.
Mr. Kirk McDonald, city manager, pointed out that community development staff
is reviewing financial assistance programs offered by other cities and will report
at a later date.
RESOLUTION 2018-19
Item 6
Commissioner Frazier introduced the following resolution and moved its
adoption “RESOLUTION APPROVING AMENDMENT 1 TO LOAN
ORIGINATION AGREEMENT BETWEEN CENTER FOR ENERGY AND
ENVIRONMENT AND EDA.” The motion for the adoption of the foregoing
resolution was seconded by Commissioner Elder, and upon vote being taken
thereon, the following voted in favor thereof: Hemken, Elder, Frazier, Hoffe,
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 Frazier, seconded by Commissioner Hoffe, to
adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 8:10 p.m.
EDA Meeting
Page 4 October 22, 2018
Respectfully submitted,
Valerie Leone, City Clerk
I:\RFA\COMM DEV\2018\EDA\11-13-18\5355 Oregon\Q & R Award Demolition Contract for 5355 Oregon Avenue 11-13-18.docx
Request for Action
November 13, 2018
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Aaron Chirpich, CD Specialist
Agenda Title
Resolution approving contract with Leadens Excavating, Inc. for demolition of site improvements, tree
removal, and site grading of 5355 Oregon Avenue North (improvement project no. 1018).
Requested Action
Staff requests approval of a resolution awarding a contract for demolition of all site improvements, tree
removal, and site grading for the property located at 5355 Oregon Avenue North, to the lowest
responsible bidder, Leadens Excavating, Inc. in the amount of $8,275.
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 Economic Development Authority (EDA) for consideration.
Background
The EDA has recently acquired the single-family home located at 5355 Oregon Avenue North 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. This contract award includes
demolition of all site improvements, tree removal, and limited site grading. Requests for quotes were sent to
five contractors. Staff received three bids and the results are as follows:
Nitti Rolloff Services, Inc. $11,975
Leadens Excavating, Inc. $8,275
All Metro Excavating, Inc. $7,450
Although All Metro Excavating has submitted the lowest bid for this project, staff recommends awarding the
contract to Leadens Excavating. The EDA has not worked with All Metro Excavating in the past, and staff
does not consider All Metro Excavating to be a responsible bidder, as their Better Business Bureau (BBB)
accreditation has recently been revoked, and the company has a rating of C+ by the BBB. All Metro
Excavating also has a history of missing bid deadlines for past EDA demolition projects. For these reasons,
staff believes it is not prudent to consider All Metro Excavating for this project and subsequent contract
award.
Funding
EDA funds will be used to pay for this contract award.
Experience with Recommended Contractor
The EDA has worked with the recommended contractor on two previous scattered site housing projects.
Leadens Excavating, Inc. was the selected contractor for demolition and site grading work at 6065 Louisiana
Agenda Section
EDA
Item Number
4
Request for Action, Page 2
Avenue, and 4511 Boone Avenue. Staff had a good experience working with the contractor, and has no
concerns with hiring them for this project.
Attachments
Resolution
Bids Received
BBB Summary of All Metro Excavating Violations
RFQ and Bid Specifications
EDA RESOLUTION NO. 18-___
RESOLUTION APPROVING CONTRACT WITH LEADENS EXCAVATING, INC.
FOR DEMOLITION OF SITE IMPROVEMENTS, TREE REMOVAL,
AND SITE GRADING OF 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 that certain real property located at 5355 Oregon Avenue North, New Hope,
MN (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 to be followed by the
demolition of all buildings on the Property, tree removal, and site grading of the Property; and
WHEREAS, Leadens Excavating, Inc. submitted a proposal for demolition of site
improvements, tree removal, and site grading (“Work”) that meets all of the Project Specifications
and is the low and responsible bid; and
WHEREAS, it is in the best interests of the EDA to enter into a contract with Leadens
Excavating, Inc. for the purpose of performing the Work; and
WHEREAS, City staff is hereby seeking approval from the EDA of the selection of
Leadens Excavating, 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 Leadens Excavating, Inc. as the Contractor to perform the
demolition of all building and site improvements located at the Property, tree
removal, and site grading of the Property pursuant to the Project Specifications is
approved, it being in the best interest of the EDA and City to prepare the Property
for redevelopment in accordance with the City’s scattered site housing program and
policy.
3. That the payment of $8,275 to Leadens Excavating, 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 demolition, tree removal, and the re-
grading of the Property in accordance with the contract to be prepared by the City
Attorney.
Dated the 13th day of November, 2018.
____________________________________
Kathi Hemken, President
Attest: _____________________________
Kirk McDonald, Executive Director
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Oregon.docx
I:\RFA\COMM DEV\2018\EDA\11-13-18\7227 62nd\Q & R - 7227 62nd Ave Acquisition 11-13-18.docx
Request for Action
November 13, 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 7227 62nd Avenue North (improvement
project no. 1028)
Requested Action
Staff requests the Economic Development Authority (EDA) to authorize entering into a Purchase Agreement
for the acquisition of 7227 62nd Avenue North, for $150,000 (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.
Background
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. 7227 62nd Avenue is
located in one of the city’s priority redevelopment areas, and the property sits in-between two properties
recently acquired for redevelopment as part of the Scattered Site Housing Program.
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 onto 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 7227 62nd Avenue when working on other scattered site projects in the area . The
home appeared to be vacant, and staff reached out to the owners to see if they would be interested in selling
the property. When staff contacted the owners, they confirmed the vacant status of the home and expressed a
willingness to work with the city for the sale of the property. Therefore, staff ordered an appraisal of the
home to determine a starting point for negotiations. The appraised value came in at $150,000. Following a
review of the appraisal and an assessment of the prices paid by the EDA for other homes in the area, staff
offered $140,000 to purchase the property. The owners countered the city’s initial offer with a request for
$159,000. Following the counteroffer, staff met with the city manager and decided to make a “best and final”
offer of $150,000. The offer was accepted by the seller’s 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 Community Development Block Grant (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
Agenda Section
EDA
Item Number
5
Request for Action, Page 2
area. The lack of CDBG resources will require that the projected value gap of $116,750 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 7227 62nd 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 7227 62ND AVENUE NORTH
(IMPROVEMENT PROJECT NO. 1028)
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
7227 62nd Avenue North, New Hope, MN, P.I.D. 05-118-21-21-0009, and legally described on the
attached Exhibit A (the “Property”) from the Estates of Warren and Shirley Pramann (“Seller”);
WHEREAS, the house located on the Property was built in 1952 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 the Seller, 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 $150,000.00, 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 13th day of November, 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
S:\111318 City Council Packet\EDA6 RFA - Sale of Lot at 7215 62nd 11-13-18 Project 1023.docx
Request for Action
November 13, 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 Great Buy Homes, Inc. for the sale of
7215 62nd Avenue North (improvement project no. 1023).
Requested Action
This is a public hearing, and after receiving public comments, staff is requesting that the Economic
Development Authority (EDA) approve the attached resolution approving the purchase and redevelopment
agreement for the sale of the EDA-owned property located at 7215 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 7215 62nd
Avenue. The non-negotiable minimum lot sales price was set at $60,000, and builders were offered the chance
to submit a higher offer to make their proposal more competitive. The EDA received proposals from the
following three builders:
Tollberg Homes, LLC
Novak-Fleck, Inc.
Great Buy Homes, Inc.
Staff reviewed the proposals with the city manager and designated Great Buy 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.
Great Buy Homes Overview
Split-entry home design
Above-average curb appeal
Mid-to-high-level trim package for the cabinets, flooring, doors, and fixtures
Five bedrooms
Master suite with walk-in closet
Three-car garage
Two full baths, and one ¾ bath
2,345 finished square feet
Typical exterior finishes, vinyl siding with cultured stone accents
Land offer = $61,000
Agenda Section
EDA
Item Number
6
Request for Action, Page 2
Anticipated sales price = $325,000
Tollberg Homes Overview
Split-entry home design
Above-average curb appeal
Mid-level trim package for cabinets, flooring, doors, and fixtures
Five bedrooms
Master suite
Three-car garage
One full bath, two ¾ baths
2,244 finished square feet
Typical exterior finishes, vinyl siding with cultured stone accents
Land offer = $65,000
Anticipated sales price = $329,900
Novak-Fleck Overview
Split-entry home design
Above-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
1,836 finished square feet
Typical exterior finishes, vinyl siding with cultured stone accents
Land offer = $62,000
Anticipated sales price = $289,316
Summary Rationale for Selecting Great Buy Homes
The RFP guidelines state that preference will be given to plans that propose to finish the largest amount
square footage, and plans that include high quality exterior materials and upgraded interior amenities. The
RFP also states that submitting the highest land offer will not guarantee proposal selection by the EDA. In
the opinion of staff, all three proposals are very similar, and it was difficult to select a clear leader from the
group. However, when considering the RFP guidelines, staff believes that the following characteristics of the
Great Buy Homes proposal set it apart from the others:
Largest amount of finished square feet (101 square feet more than next highest)
Higher-level trim package that includes granite counter tops in the kitchen
Superior bathroom arrangement, including two full baths with double vanities
Master suite that includes a walk-in closet
Competitive anticipated sales price of $325,000
Experience with Recommended Builder
Great Buy Homes is a moderate-sized custom home builder based out of Anoka, and the EDA has sold three
lots to Great Buy over the past two years. The lots purchased by the builder have been located at 5400 Yukon
Request for Action, Page 3
Avenue, 6065 Louisiana Avenue, and 6067 Louisiana Avenue. Overall, staff has been impressed by the
quality of work completed by Great Buy Homes thus far. However, the EDA may recall that Great Buy
Homes struggled to sell the home located at 6067 Louisiana Avenue, and requested a change to their plans
for their lot next door at 6065 Louisiana Avenue as a result. The EDA granted the request for plan changes,
and following approval of the contract amendment, Great Buy Homes has fulfilled its obligation to complete
the redevelopment of the 6065 Louisiana Avenue property. Staff believes that Great Buy Homes remains a
valued partner of the EDA, and has no issues with selecting the builder for this project.
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 $61,000. 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 by the end of
November.
Recommendation
Staff recommends that the EDA approve the resolution approving the purchase and redevelopment
agreement for the sale of 7215 62nd Avenue North to Great Buy Homes, Inc.
Attachments
Resolution
Public Hearing Notice
Comparison Sheet
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 GREAT BUY HOMES, INC. FOR THE
SALE OF 7215 62ND AVENUE NORTH
(IMPROVEMENT PROJECT NO. 1023)
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 7215 62nd Avenue
North, New Hope, MN, and legally described in the attached Exhibit A (the “Property”) on August
13, 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 Great Buy Homes, Inc. a Minnesota
corporation (“Great Buy Homes”) regarding the sale and redevelopment of the Property; and
WHEREAS, the EDA arrived at an agreement with Great Buy Homes, to sell the Property
for the purchase price of $61,000.00 upon all of the terms set forth in the RFP; and
WHEREAS, the EDA has accepted Great Buy Homes’ offer and has presented a draft of
the Purchase and Redevelopment Agreement to Great Buy 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 Great Buy Homes
for the sum of $61,000.00, in order for Great Buy 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 Great Buy Homes, for the purchase
price of $61,000.00, 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 Great Buy 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 13th day of November 2018.
____________________________________
Kathi Hemken, President
Attest: _____________________________
Kirk McDonald, Executive Director
Exhibit A
Legal Description
See attached.
Exhibit B
Purchase and Redevelopment Agreement
See attached.
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PURCHASE AND REDEVELOPMENT AGREEMENT
This Purchase and Redevelopment Agreement ("Agreement") is made by and between
GREAT BUY HOMES, INC. a Minnesota corporation (“Buyer") and the ECONOMIC
DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE,
MINNESOTA, a public body corporate and politic created pursuant to the laws of the State of
Minnesota ("Seller") effective November ______, 2018. In consideration of the covenants and
agreements of the respective parties as hereinafter set forth, Seller shall sell and Buyer shall
purchase the vacant parcel of real property located in the City of New Hope at the property address
of 7215 62nd Avenue North, New Hope, Minnesota, and legally described in the attached Exhibit
A (the “Property”).
1. Purchase Price. The purchase price for the Property is Sixty-One Thousand and No/100
Dollars ($61,000.00) (the “Purchase Price”), which Buyer shall pay as follows: an initial
payment of Two Thousand and No/100 Dollars ($2,000.00) (the “Earnest Money”), which
sum shall be paid to Seller upon Buyer and Seller’s execution of this Agreement and Fifty-
Nine Thousand and No/100 Dollars ($59,000.00) payable by wire, cashier’s check or cash
on the “Date of Closing”, as that term is defined in paragraph 6 below. There are no items
of personal property or fixtures included in this sale.
2. Title Conveyed. On the Date of Closing, Seller shall deliver a Quit Claim Deed (the
"Deed") to Buyer conveying marketable title of record, free and clear of liens,
encumbrances, assessments, and restrictions, except for the “Permitted Encumbrances” set
forth on Exhibit B and the restrictive covenants referenced below in paragraph 4.b.
3. Representations of Seller. Seller represents and agrees as follows:
a. Seller owns the Property and has the right to sell the same, and that there are no
unrecorded contracts, leases, easements or other agreements or claims of any third
party affecting the use, title, occupancy or development of the Property, there are
no parties other than Seller in possession of any portion of the Property, and no
person, firm or entity has any right of refusal, option or other right to acquire all or
any part of the Property.
b. Seller has not received any notice from any governmental authority concerning any
eminent domain, condemnation, special taxing district, or rezoning proceedings.
c. To the best of Seller’s knowledge without inquiry there are no septic systems or
wells on the Property other than a well that was sealed by Seller as shown on the
attached Exhibit C.
d. Seller represents that it has the requisite power and authority to enter into and
perform this Agreement and any Seller’s Closing Documents signed by it.
e. Seller is not a “foreign person,” “foreign partnership,” “foreign trust” or “foreign
estate” as those terms are defined in Section 1445 of the Internal Revenue Code.
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f. To the best of Seller’s knowledge without inquiry, no above ground or underground
tanks are located in or about the Property.
g. Seller makes no other warranties as to the condition of the Property.
Seller agrees that any breach of Seller’s foregoing representations shall be grounds for Buyer to
terminate this Agreement. In the event of such termination, the Earnest Money shall be returned.
Wherever herein a representation is made “to the best of Seller’s knowledge,” such
representation is limited to the actual knowledge of the President and/or Executive Director of
Seller.
4. Representations of Buyer. As an essential part of this Agreement and in order to
induce Seller to enter into this Agreement and sell the Property, Buyer hereby represents
to Seller:
a. SUBJECT TO THE FOREGOING REPRESENTATIONS BY SELLER,
BUYER HEREBY ACKNOWLEDGES THAT BUYER IS PURCHASING
THE PROPERTY IN “AS IS” CONDITION AS TO THE USE OF THE
PROPERTY. Buyer understands and agrees that the Purchase Price is the fair
market value of the Property in its “AS IS” condition. Buyer acknowledges that
they have inspected or have had the opportunity to inspect the Property and agree to
accept the Property "AS IS." Buyer has the right, at its own expense to take soil
samples for the purpose of determining if the soil is suitable for construction of the
homes described in paragraph 10 below. If the soil is determined to be unacceptable
Buyer may rescind this Agreement by written notice to Seller, in which case the
Agreement shall be null and void and all earnest money paid hereunder shall be
refunded to Buyer.
b. Buyer agrees the first sale of the separate homes on the Property will be sold to
owner-occupants. An “owner-occupant” shall be defined as an individual(s) that
purchases the home from Buyer by warranty deed or a contract for deed and
intending to reside in the home as a primary residence. To insure the intent of the
parties that the home constructed on the Property is purchased by an owner-
occupant, Buyer will record restrictive covenants and assessment agreement
against the Property prohibiting the leasing of the home for a period of twelve
(12) months after the sale of such home by Buyer to an owner-occupant of the
home. The restrictive covenants and assessment agreement shall be substantially
in the form of the documents attached hereto as Exhibits D and E, respectively.
Further, the restrictive covenants and assessment agreement shall provide that the
EDA may levy a $20,000.00 assessment on the Property prior to the sale if the lot
is not being sold to an owner-occupant. The EDA shall release the Property from
these restrictive covenants and assessment agreement upon the issuance of a
certificate of occupancy for the construction of the home on the Property and
upon the receipt by the EDA of an affidavit signed by Buyer and the owner-
occupants verifying owner-occupants’ intent to reside in the homes as their
primary residence in compliance with the restrictive covenants described herein in
the form attached as Exhibit D.
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c. Within one (1) year of Closing, Buyer shall complete the construction of the
single family home on the Property (the Improvements). The Improvements must
be consistent with all building and zoning requirements and the restrictive
covenants applicable to the Property.
The representations set forth in this paragraph shall be incorporated into appropriate documents
to be recorded against the Property (whether by declaration, restrictive covenants, or
development agreement as hereinafter defined) subject to approval by Seller and Buyer as a
condition of Closing.
5. Title Commitment and Policy.
a. Seller shall deliver to Buyer a Commitment for an ALTA Form B owner's policy
of title insurance (the “Commitment”) issued by a title insurance company of
Buyer’s choice (“Title Company”) and covering title to the Property, in the amount
of the Purchase Price. Buyer agrees to pay the costs associated with the preparation
and issuance of the Commitment; Buyer shall pay the premium for the owner’s
policy, if any, and the lender’s policy, if any, along with the price for any
endorsements requested by Buyer or Buyer’s lender.
b. Buyer shall have fifteen (15) days after receipt of the Commitment to review and
approve the title to the Property and to object to any exception to title that is
disclosed in the Commitment or which is otherwise discovered by Buyer. In the
event that Buyer does not within such fifteen (15) day period give notice to Seller
objecting to any such exceptions, then all such exceptions shall be deemed
approved and shall be considered a part of the Permitted Encumbrances. If Buyer
timely objects to an exception to title, then on or before the tenth (10) day following
Buyer’s notice of exception, Seller shall remove the exception or notify Buyer that
Seller is unwilling or unable to remove the exception. Within five (5) days of any
notice by Seller that Seller it is unable to remove an exception to title, Buyer may
elect by notice to Seller to either:
(i) terminate this Agreement, whereupon all of the Earnest Money shall be
returned to Buyer and the parties shall be released from all further
obligations hereunder except obligations under this Agreement which
provide for continued exercise following the cancellation or other
termination of this Agreement; or
(ii) elect to have this Agreement remain in effect, in which event Buyer will be
deemed to have approved the previously-cited exception and the same shall
be considered part of the Permitted Encumbrances.
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6. Closing.
a. Closing shall occur on or before ____________, 2018 (the “Date of Closing” or
“Closing”), unless both parties agree, in writing, to an earlier or later time.
b. Closing shall occur at the office of the Title Company.
c. Seller shall deliver at closing the following executed and acknowledged documents:
(i) the Deed;
(ii) affidavit(s) in industry-standard form(s) stating that possession of the
Property is being delivered free of any mechanic's or statutory liens in
connection with work performed prior to closing; Seller is not a foreign
person or entity; and addressing such other matters as Buyer may reasonably
require.
7. Payments/Prorations. At Closing, Seller shall pay the cost of recording any instrument
(other than the Deed) necessary to place title in the condition required under this
Agreement, State deed tax, and all special assessments levied, pending or constituting a
lien against the Property as of the Date of Closing, including without limitation any
installments of special assessments and interest payable with general real estate taxes in
the year of closing. Seller will pay general real estate taxes payable in the year prior to the
year of closing and all prior years. Buyer shall pay at Closing the cost of the owner’s policy
or lender’s policy of title insurance (if any), sales tax (if any) resulting from the Closing,
the fees required for recording the Deed, the Purchase and Redevelopment Agreement, the
assessment agreement and restrictive covenants and all customary closing fees charged by
the Title Company or other closing agent, if any, utilized to close the transaction
contemplated by this Agreement. General real estate taxes payable in the year of closing
shall be prorated by Seller and Buyer as of the closing date based upon a calendar year.
Each party shall pay its own attorney’s fees.
8. Condemnation. If, prior to the Date of Closing, all or any part of the Property shall be
condemned by governmental or other lawful authority, Buyer shall have the option of (a)
completing the purchase contemplated by this Agreement, in which event all condemnation
proceeds or claims thereof shall be assigned to Buyer, or (b) canceling this Agreement, in
which event the Earnest Money shall be refunded and this Agreement shall be terminated
with neither party having any rights against or obligations to the other except rights or
obligations under this Agreement which provide for continued exercise following closing
or cancellation or other termination of this Agreement, and Seller shall be entitled to any
and all condemnation proceeds.
9. Construction of Homes. Buyer agrees that it will construct a new single family home on
the Property. This covenant shall survive the delivery of the Deed.
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a. The single family home described in this paragraph is referred to as the
"Minimum Improvements.”
b. The Minimum Improvements shall consist of one new single family home, and
shall be constructed substantially in accordance with the RFP Guidelines attached
as Exhibit F and the proposal approved by Seller on ______________, 2018
attached as Exhibit G.
c. Construction of the Minimum Improvements must be substantially completed
within one (1) year following Closing. Construction will be considered
substantially complete when the final certificate of occupancy has been issued by
the City of New Hope building inspector.
d. Promptly after substantial completion of the Minimum Improvements in
accordance with those provisions of the Agreement relating solely to the
obligations of Buyer to construct such Minimum Improvements (including the
date for completion thereof), Seller will furnish Buyer with a Certificate of
Completion for such improvements. Such certification by Seller shall be (and it
shall be so provided in the Deed and in the certification itself) a conclusive
determination of satisfaction and termination of the agreements and covenants in
the Agreement and in the Deed with respect to the obligations of Buyer and its
successors and assigns, to construct the Minimum Improvements and the dates for
completion thereof.
The certificate provided for in this paragraph of this Agreement shall be in such
form as will enable it to be recorded in the Hennepin County Recorder’s Office and
other instruments pertaining to the Property. If Seller shall refuse or fail to provide
any certification in accordance with the provisions of this paragraph, Seller shall,
within thirty (30) days after written request by Buyer, provide Buyer with a written
statement, indicating in adequate detail in what respects Buyer has failed to
complete the Minimum Improvements in accordance with the provisions of the
Agreement, or is otherwise in default, and what measures or acts it will be
necessary, in the opinion of Seller for Buyer to take or perform in order to obtain
such certification.
e. Buyer represents and agrees that until issuance of the Certificate of Completion
for the Minimum Improvements:
(i) Buyer has not made or created and will not make or create or suffer to be
made or created any total or partial sale, assignment, conveyance, or lease,
or any trust or power, or transfer in any other mode or form of or with respect
to this Agreement or the Property or any part thereof or any interest therein,
or any contract or agreement to do any of the same, to any person or entity
(collectively, a “Transfer”), without the prior written approval of Seller. The
term "Transfer" does not include encumbrances made or granted by way of
security for, and only for, the purpose of obtaining construction, interim or
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permanent financing necessary to enable Buyer or any successor in interest
to the Property, or any part thereof, to construct the Mini mum
Improvements or component thereof.
(ii) If Buyer seeks to effect a Transfer prior to issuance of the Certificate of
Completion, Seller shall be entitled to require as conditions to such
Transfer that:
(1) any proposed transferee shall have the qualifications and financial
responsibility, in the reasonable judgment of Seller, necessary and
adequate to fulfill the obligations undertaken in this Agreement by
Buyer as to the portion of the Property to be transferred; and
(2) Any proposed transferee, by instrument in writing satisfactory to
Seller and in form recordable in the public land records of Hennepin
County, Minnesota, shall, for itself and its successors and assigns, and
expressly for the benefit of Seller, have expressly assumed all of the
obligations of Buyer under this Agreement as to the portion of the
Property to be transferred and agreed to be subject to all the conditions
and restrictions to which Buyer is subject as to such portion; provided,
however, that the fact that any transferee of, or any other successor in
interest whatsoever to, the Property, or any part thereof, shall not, for
whatever reason, have assumed such obligations or so agreed, and
shall not (unless and only to the extent otherwise specifically
provided in this Agreement or agreed to in writing by Seller) deprive
Seller of any rights or remedies or controls with respect to the
Property, the Minimum Improvements or any part thereof or the
construction of the Minimum Improvements; it being the intent of the
parties as expressed in this Agreement that (to the fullest extent
permitted at law and in equity and excepting only in the manner and
to the extent specifically provided otherwise in this Agreement) no
transfer of, or change with respect to, ownership in the Property or
any part thereof, or any interest therein, however consummated or
occurring, and whether voluntary or involuntary, shall operate,
legally, or practically, to deprive or limit Seller of or with respect to
any rights or remedies on controls provided in or resulting from this
Agreement with respect to the Property that Seller would have had,
had there been no such transfer or change. In the absence of specific
written agreement by Seller to the contrary, no such transfer or
approval by Seller thereof shall be deemed to relieve Buyer, or any
other party bound in any way by this Agreement or otherwise with
respect to the Property, from any of its obligations with respect
thereto.
(3) Any and all instruments and other legal documents involved in
effecting the transfer of any interest in this Agreement or the
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Property governed by this subparagraph shall be in a form
reasonably satisfactory to Seller.
(iii) If the conditions described above are satisfied then the Transfer will be
approved and Buyer shall be released from its obligation under this
Agreement, as to the portion of the Property that is transferred, assigned,
or otherwise conveyed. The provisions of this paragraph (iii) apply to all
subsequent transferors.
(iv) Upon issuance of the Certificate of Completion, Buyer may transfer or
assign the Minimum Improvements and/or Buyer's rights and obligations
under this Agreement with respect to such Property without the prior
written consent of Seller.
f. Buyer agrees that (a) it will use the Minimum Improvements as only a single family,
owner-occupied homes, (b) it will not seek exemption from real estate taxes on the
Property under State law, and (c) it will not transfer or permit transfer of the Property
to any entity whose ownership or operation of the property would result in the Property
being exempt from real estate taxes under State law (other than any portion thereof
dedicated or conveyed to the City of New Hope or Seller in accordance with this
Agreement). The covenants in this paragraph run with the land, survive both delivery
of the Deed and issuance of the Certificate of Completion for the Minimum
Improvements, and shall remain in effect for at least 30 years after the Date of Closing.
g. Buyer shall comply with all recommendations of the City Engineer.
h. Buyer’s construction plans shall be approved by the City Building Official.
10. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer.
In the event that subsequent to conveyance of the Property or any part thereof to Buyer and
prior to receipt by Buyer of the Certificate of Completion of the Minimum Improvements,
Buyer fails to carry out its obligations with respect to the construction of the Minimum
Improvements (including the nature and the date for the completion thereof), or abandons or
substantially suspends construction work, and any such failure, abandonment, or suspension
shall not be cured, ended, or remedied within thirty (30) days after written demand from
Seller to Buyer to do so, then Seller shall have the right to re-enter and take possession of the
Property and to terminate (and revert in Seller) the estate conveyed by the Deed to Buyer, it
being the intent of this provision, together with other provisions of the Agreement, that the
conveyance of the Property to Buyer shall be made upon, and that the Deed shall contain a
condition subsequent to the effect that in the event of any default on the part of Buyer and
failure on the part of Buyer to remedy, end, or abrogate such default within the period and in
the manner stated in such subdivisions, Seller at its option may declare a termination in favor
of Seller of the title, and of all the rights and interests in and to the Property conveyed to
Buyer, and that such title and all rights and interests of Buyer, and any assigns or successors
in interest to and in the Property, shall revert to Seller, but only if the events stated in this
paragraph have not been cured within the time periods provided above.
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Notwithstanding anything to the contrary contained in this paragraph, Seller shall have no right
to reenter or retake title to and possession of a portion of the Property for which a Certificate of
Completion has been issued.
11. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in Seller
of title to and/or possession of the Property or any part thereof as provided in paragraph
10, Seller shall apply the Purchase Price paid by Buyer under paragraph 1 of this
Agreement as follows:
a. First, to reimburse Seller for all costs and expenses incurred by Seller, including but
not limited to proportionate salaries of personnel, in connection with the recapture,
management, and resale of the Property or part thereof (but less any income derived
by Seller from the Property or part thereof in connection with such management); all
taxes, assessments, and water and sewer charges with respect to the Property or part
thereof (or, in the event the Property is exempt from taxation or assessment or such
charge during the period of ownership thereof by Seller, an amount, if paid, equal to
such taxes, assessments, or charges (as determined by Seller assessing official) as
would have been payable if the Property were not so exempt); any payments made
or necessary to be made to discharge any encumbrances or liens existing on the
Property or part thereof at the time of revesting of title thereto in Seller or to discharge
or prevent from attaching or being made any subsequent encumbrances or liens due
to obligations, defaults or acts of the Buyer, its successors or transferees; any
expenditures made or obligations incurred with respect to the making or completion
of the Minimum Improvements or any part thereof on the Property or part thereof;
and any amounts otherwise owing Seller by the Buyer and its successor or transferee;
and
b. Second, to reimburse Buyer for the balance of the Purchase Price remaining after
the reimbursements specified in paragraph (a) above. Such reimbursement shall be
paid to Buyer upon delivery of executed, recordable warranty deed to the Property
by Buyer to Seller.
12. Notices. All notices required hereunder shall be in writing and shall be deemed to have
been duly given and received (a) two (2) business days after depositing of the same in the
mail if sent by regular, registered or certified mail, postage prepaid, to the party to whom
directed, at such party's address herein set forth; or (b) upon delivery, or attempted delivery
if delivered by overnight courier service or hand delivery. Any party shall have the right
to designate any other address for notice purposes by written notice to the other party in
the manner aforesaid. The addresses of the parties are as follows:
SELLER: Economic Development Authority in and for the City of New Hope
Kirk McDonald, Executive Director
4401 Xylon Avenue North
New Hope, MN 55428-4898
with copy to: Stacy A. Woods, New Hope Assistant City Attorney
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Jensen Sondrall Persellin & Woods, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
BUYER: GREAT BUY HOMES, INC.
5790 195th Ave NW
Anoka, MN 55303
with copy to: _______________________________
_______________________________
_______________________________
________________________________
13. No Broker Involved. Seller and Buyer represent and warrant to each other that there is no
broker involved in this transaction with whom it has negotiated or to whom it has agreed to
pay a broker commission. Buyer agrees to indemnify Seller for any and all claims for
brokerage commissions or finders' fees in connection with negotiations for purchase of the
Property arising out of any alleged agreement or commitment or negotiation by Buyer, and
Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or finders'
fees in connection with negotiations for purchase of the Property arising out of any alleged
agreement or commitment or negotiation by Seller.
14. Remedies. If Buyer defaults under this Agreement, Seller shall have the right to terminate
this Agreement by giving written notice to Buyer as provided by law. If Buyer fails to cure
such default as provided by law, this Agreement will terminate, and upon such termination
Seller will retain the Earnest Money and neither party shall have any rights or obligations
against the other except rights or obligations under this Agreement which provide for
continued exercise following the cancellation or other termination of this Agreement. If
Seller defaults under this Agreement, Buyer’s only remedy shall be to terminate the
Agreement and recover the Earnest Money paid to Seller. Buyer shall not have any right
to the remedy of specific performance
15. Assignment/Prohibition Against Transfer of Property. Buyer may not assign its rights
and obligations hereunder without the prior written consent of Seller, which consent may
be granted or withheld by Seller in its sole discretion.
16. Miscellaneous. This Agreement shall be governed by the laws of the State of Minnesota.
No amendment of this Agreement shall be valid or binding unless executed by authorized
representatives of both Seller and Buyer. The headings and captions of this Agreement are
for the convenience of the parties only and shall not be looked to in the interpretation or
enforcement of this Agreement. Seller and Buyer acknowledge and agree that each has
had opportunity to participate in the drafting of this Agreement and accordingly
acknowledge and agree that this Agreement as a whole and each of is clauses are not to be
interpreted in favor of or against either party. This Agreement may be signed in
counterpart, with each copy of the Agreement binding upon the signing party at the time
of signing and together which shall constitute a single document.
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17. Survival. The Parties representations contained herein shall survive the delivery of the
Deed.
IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the above
date (“Effective Date”).
SELLER:
ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF NEW HOPE
By: _______________________________
Kathi Hemken
Its: President
Dated: November____, 2018
By: _______________________________
Kirk McDonald
Its: Executive Director
Dated: November____, 2018
BUYER:
GREAT BUY HOMES, INC.
By: ________________________________
Glenn Hammer
Its: President
Dated: November____, 2018
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _____ day of November, 2018,
by Kathi Hemken and Kirk McDonald, the President and Executive Director, respectively, of the
Economic Development Authority in and for the City of New Hope, a public body corporate and
politic created pursuant to the laws of the State of Minnesota.
_______________________________
Notary Public
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STATE OF MINNESOTA )
) ss.
COUNTY OF _______________ )
The foregoing instrument was acknowledged before me this ___ day of November, 2018, by Glenn
Hammer, the President of GREAT BUY HOMES, INC., a Minnesota corporation, on behalf of said
corporation.
_______________________________
Notary Public
DRAFTED BY:
Jensen Sondrall Persellin & Woods, P.A.
8525 Edinbrook Crossing, #201
Brooklyn Park, MN 55443
(763) 424-8811
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Exhibit A
Legal Description
See attached.
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Exhibit B
Permitted Encumbrances
1. Restrictions, reservations, covenants and easements relating to use or
improvement of the Property without effective forfeiture provisions of record on
the Effective Date;
2. Building and zoning laws, ordinances, city, state and federal regulations;
3. Governmental regulations, if any, affecting the use and occupancy of the
Property;
4. All rights in public highways upon the land;
5. Easements for public rights-of-way and public and private utilities, which do not
interfere with present improvements;
6. Reservations to the State, in trust for the taxing districts concerned, of minerals
and mineral rights in those portions of the Property the title to which may have at
any time heretofore been forfeited to the State for nonpayment of real estate taxes.
7. The lien of unpaid special assessments, if any, not presently payable but to be
paid as a part of the annual taxes to become due;
8. The lien of unpaid real estate taxes, if any, not presently payable but to be paid as
part of the annual taxes to become due.
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Exhibit C
Well Sealing Certificate
See attached.
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Exhibit D
Restrictive Covenants
See attached.
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Exhibit E
Assessment Agreement
See attached.
17
Exhibit F
Request for Proposal (“RFP”) Guidelines
See attached.
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Exhibit G
Buyer’s Proposed Plans
See attached.
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