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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 P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11423 5355 Oregon Ave N\Resolution approving Demolition contract for 5355 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. C:\Users\saw\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\IAZTM8X0\Resolution Approving Sale of 7215 62nd Avenue.docx 1 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. 2 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. 3 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. 4 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. 5 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 6 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 7 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. 8 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 9 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. 10 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 11 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 12 Exhibit A Legal Description See attached. 13 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. 14 Exhibit C Well Sealing Certificate See attached. 15 Exhibit D Restrictive Covenants See attached. 16 Exhibit E Assessment Agreement See attached. 17 Exhibit F Request for Proposal (“RFP”) Guidelines See attached. 18 Exhibit G Buyer’s Proposed Plans See attached. P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11425 7215 62nd Ave. N\Purchase and Redevelopment Agreement 7215 62nd.docx