121106 EDA
CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
December 11, 2006
EDA Meeting will commence upon
adjournment of the City Council Meeting
President Martin Opem Sr.
Commissioner Mary Gvvin-Lenth
Commissioner Andy Hoffe
Commissioner Karen Nolte
Commissioner Steve Sommer
1. Call to order
2. Ro 11 call
'""l Approval of regular n1eeting minutes of October 23, 2006
..).
4. Update regarding tIle potential redevelopment of the city-oily-ned parcels at 7601,
7621, alld 7641 62nd Avenue North and illation approvi11g First Amendment to
Illterim Agreement (improven1ent project 110.811)
:'. Adjournn1ent
CI1r OF NEW HOPE
4401 XYLON A VE~TUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes October 23, 2006
Regular Meeting City Hall
CALL TO ORDER President Opem called the meeting of the Economic Development Authority
to order at 8:55 p.m.
ROLL CALL Present: Martin Opem Sr., President
Andy Hoffe, Commissioner
Karen Nolte, Commissioner
Steve Sommer, Commissioner
Absent: Mary Gvvin-Lenth, Commissioner
Staff Present: Dan Donal1ue, City Manager
Kim Berggren, Comn1unity Development Assistant
Curtis Jacobsen, Community Development Specialist
Valerie Leon.e, City Clerk
Kirk McDonald, Director of Community Development
Steve Sondrall, City Attorne}T
Vince VanderTop, Assistant City Engineer
APPROVE MINUTES Motion I.,vas ll1ade by Commissioner Nolte, seconded by Con1nlissioner
Son1n1er, to approve the Regular Meeting Minutes of August 28, 2006.
V oting in favor: Openl, Hoffe, Nolte, Sommer; Voting Against: None;
Abstained: None; Absent: Gwin-Lenth. I\1otio11 carried.
IMP. PROJECT 811 President Open1 introduced for discussio11 Iten1 4, Update regarding the
Item 4 potential redeveloplnent of tl1e city-o\vned parcels at 7601, 7621, and 764162nd
Avenue North (improvement project no. 811).
Mr. Kirk 1\1cDonald, community development director, explai11ed that staff
requests to update tIle Economic Developn1ent Authority (EDA) on itenlS
related to the proposed redevelopment of the city-ovvl1ed parcels at 7601,
7621, a11d 7641 62nd Avenue. He explained that per tIle interin1 agreement
adopted on August 28, 2006, the currellt o\vner of the Sl.vift Gas Station,
located at t11e corner of 62nd Avenue and vVest Broad\vay (6113 West
Broadvlay), is \vorking on plans to incorporate tIle tlTIee vacant city-o\vned
lots and the five properties to the ,vest of the city-o\vned lots into the
redevelopnlent of the gas station site. He stated strategic goal number 3 in the
2006 City Plan is to encourage maintenance, redevelopme11t, and reinvestn1ent
of existing properties to iInprove the tax base.
Mr. McDonald relayed tllat at its August 28, 2006 meeting, the EDA
EDA Meeting
Page 1 October 23, 2006
authorized an exclusive negotiation period 'Yvith Delkar, LLC, for the
redevelopment of the city-owned vacant lots along 62nd Avenue, "\vhich
included a cost sharing agreement. He stated tile current o\vner of the Swift
Gas Station, located at the corner of 62nd Avenue and West Broad'Yvay (6113
West Broad'Yvay), has requested to incorporate the three vacant city-owned
lots (7601, 7621, and 7641 62nd Avenue) into the redevelopment of the gas
station site. He stated the city acquired the tluee properties in 1998 and land
banked the properties 1.Nith the intent of redeveloping the site with medium
density housing, possibly to\vnhomes.
Mr. McDonald stated at tIle July 24, 2006, City Council meeting, a general
concept proposal for a mixed-use development vvas presented to the City
Council and the redeveloper was present to provide comments. He reported
the Council indicated a willillgness to consider a proposal for the city's lots,
and suggested that staff continue to vvork with the redeveloper on an
agreement for preliminary negotiations. Mr. McDonald explained that staff
has contiIlued to "\rVork vvitll the redeveloper on the proposed project. He
stated the interim agreement listed six elements to be completed by October
16. He explained the developer has submitted brief information about other
projects; selected an architect and had discussion Vvith several development
firms; provided a demographic survey; provided a preliminary concept plan;
met vvith the ov~rner of EI Dorado Apartments; and submitted a 1999
environmental asseSSlllent for the S'\'vift Gas Station site.
Mr. McDonald indicated the developer 11as made a major modification to the
initial concept plan and is novv proposing a to"\vnllome project '\vithout a
conl11lercial element. He stated tIle o'\'vner of tIle apartment cODlplex aJ.ld the
owner of the four-unit building have both expressed a "\villingness to sell their
properties for a fair price. lvIr. 11cDonald also relayed that the developer does
not feel a ne,<\' market study is llecessary si1lce the city has two fairly recent
l1larket studies for Winnetka Green and City Center.
He illustrated the concept dra'\ving and elevation for a 36-unit owner-
occupied town}10111e development to be knovvll as Nev\T Hope's "Northgate".
He stated the units 'Vvould each 11ave a ty\ro-car garage and deck, and the units
vvould be placed in U shaped c01lfigurations "\Vitll landscaped court yards
facing 62nd A venue. He reported the site previously contained 44 apartment
units plus the gas station. Mr. McDonald indicated the city's planner ,'Vas
consulted aJld recomn1ended no nlore than 32 units for the site. He indicated
the developer's selected arcJlitect is Gene Nicolelli v{ho "\vas the architect for
the NCRC Sitns Park Project. He stated no builder has been iden.tified yet. He
indicated flexibility by tlle city through the use of a PUD, rezoning and
comprehensive plaIl alnendment "\'\Tould all be required for the current concept
to proceed.
IvIr. McDo11ald stated if the EDA continues to support tl1e project, staff y\rill
,vork vvith tIle redeveloper to meet the next tirneline in tlle iIlterin1 agreenlent
for subnlission of a COllstruction pro forma and other financial documents. He
lloted the 55,000 deposit has not been dravvn upon and reC011111lended
EDA Meeting
Page 2 October 23, 2006
involving Krass Monroe In the financial review process. He also
recommended the financial information be submitted to the EDA prior to
conducting a neighborhood meeting.
Jv1r. Gene Nicolelli, architect, was recognized. He explained the approach for
the development 'Vvith attractive U shaped structures rather than one long
building facing the street. He indicated tlle site concept consist of three II-unit
buildings and one 3-Ullit building vvith one, tvvo and three bedroom units
ranging from 1,100 to 1,800 square feet. He stated the impact of the
construction \vill be softened by setting the buildings farther back from 62nd
A venue and adding green space. He stated the majority of the units would
have private decks facing the courtyard.
Commissioner Sommer inquired \.vIlether the proposed development
contained any single-level living spaces. Mr. Nicolelli indicated there are no
ground level units because t11e garages are beneath the units. He explained
that some of the units contain living space on one level after entering the one
flight of stairs from t11e garage.
Discussion ensued regarding the need for a market study. Commissioner
Nolte emphasized the need for market study for the site. She also expressed
the need for assurance that the development will be owner-occupied not
leased or rented. Other EOA members concurred.
President Open1 expressed tlle in1portance of utilizing the entire area and
reaching an agreement with the property owner of EI Dorado Apartments. He
also pointed out the need to prevent the gas station property from being a
financial burden to the city if soil cleallup is necessary. He questioned the
feasibiU ty of constructing tIle proj ect 111 tl1e t\vo-pl1ase approach and
recommended the first phase include t11e El Dorado Apartments and the
second phase include the city-oVvlled property and the developer's gas station
site. He suggested reducing tl1e developn1ent to 29 U11its to maintain setbacks
and alIo\.'\! roan1 in the rear for sno"v storage and sufficient green space to
separate the development from the homes to tIle south. President Opern
requested assurance within the hon1eo"v11er association bylaws that the units
are o\vner-occupied.
Commissioner Son1nler concurred "vith President Gpern that the housing
density discussion can be o11-going. He suggested that the developer reach an
agreement vvith tIle o\vner of the apartmellts before financial consultant
expenses are incurred. He also pointed out the city does not intend to offer tax
increlnent financiIlg and the city's involven1ent s110uld be contribution of the
land only.
Mr. Allwar Abdel-Karin1, developer, vvas recognized. He reported that he has
been l1egotiating the purchase of the EI Dorado Apartn1ents and indicated he
recently gave a verbal offer. He expressed concern t11at reducing the density
\.vould diminish the feasibility of the project.
EDA 11eeting
Page 3 October 23, 2006
President Opern noted Mr. Nicolelli is a good architect and has done nice
work in the city. He suggested exploring creative solutions.
Mr. Kirk McDonald, director of comnlunity development, indicated staff will
try to address tIle issues and V\Till provide tI1e EDA vvith another update near
the end of November or early December. He explained that the agreement
and tirneliIle could be amended accordingly.
ADJOURNMENT Motion was made by Commissioner Nolte, seconded by Commissioner
Sommer, to adjourn the meeting. All present voted in favor. Motion carried.
The NeV\T Hope EDA adjourned at 9:34 p.m.
Respectfully submitted,
~~
Valerie Leone
City Clerk
EDA ivleetiIlg
Page 4 October 23, 2006
EDA
Request for Action
Originating Department Approved for Agenda Agenda Section
EDA
Community Development December 11, 2006
Item No.
By: Kirk McDo11ald, Director CD
Curtis Jacobsen, CD Specialist By: 4
Kim Berggren, CD Assistant
Update regardiJ.1g the potential redevelopment of the city-ovvned parcels at 7601, 7621, and 7641 62nd A venue
aJ.1d motion approv:ing First Amendment to Interim Agreement (ImprO\Tement Project No. 811)
Requested Action
Staff requests to update tl1e Economic Developmel1t Authority (EDA) 011 the developer's progress related to
tl1e proposed redevelopme11t of tlle city-ovvned parcels at 7601, 7621, and 7641 6211d A venue and recommends
approval of a motion approving the First Amelldment to Interim Agreement. Per the interim agreement
adopted on. August 28, 2006, the current O\Jvner of the S\Jvift Gas Station, located at the corner of 6211d A venue
and West Broadvvay (6113 West Broadvvay), is workirtg on plans to incorporate tile tluee \Tacant cit)T-o\vned
lots and the five properties to the V\Test of tile city-ovvlled lots :into tile redevelopmellt of tile gas station site.
Policy/Past Practice
Strategic goalllumber 3 III tIle 2006 City PI all is to el1courage lnallltenance, redevelopmellt, and rell1\Testmellt
of existing properties to improve the tax base.
Background
At tile October 23, 2006, EC0110miC Development Authority (EDA) meeting an update 011 tile project was gi\Ten
and tlle EDA gellerally supported the COlltinUlllg effort by the developer and the city staff to \\Tork through
the itelTIS in the interim agreemellt \\Tith Delkar, LLC, for tlle redevelopment of tile city-ovmed vacant lots
along 62nd Avellue, aI1d to ame11d the interim agreement 81ld timeline accordi11g1y. Staff 11as c011tinued to
'vvork \Vitll the rede'veloper on tile proposed project.
TIle project llltent is to rede\Telop t11e area from 6113 West Broadvvay to 7761 62nd Avenue into a tOvvnhorne
project. TIle EDA directed tIle developer to include the EI Dorado Aparhnents aJ.ld tl1e additiolla14-plex ill tile
redevelo mellt roject area.
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I:\RFA\PLANNING\PLANNING\Q - 62nd Ave Swift Station-Anwar Karim-update Dee 11.doc
Request for Action, Page 2 of 2
December 11, 2006
Per the EDA meeting on October 23, 2006, the developer has been asked to obtain a professional market study
and to work tovvard agreement vvith the ovvner of El Dorado Apartmel1.ts on the sale of that property and also
the adjacent 4-plex.
The developer has met with two marketing firms. The developer has reached agreement \vith the McComb
Group, Ltd. to conduct a site specific market study for tlle site on 62nd A'venue. The 1\1cComb Group has told
the developer that they vvould have a completed market study by December 15/ 2006.
The developer has continued to meet with the o\vner of El Dorado Apartments and the ovvner of the four-plex
regardmg acquisition of their property and both have expressed a willingness to sell their property if offered
a fair price. Both of the rental property o\vners are currently experiellclllg vacancies at unacceptable levels.
Therefore, \vhile some of the steps outlined in the agreement that are required of the developer are taking
longer than anticipated to accomplish, the developer is following through on their commitments aJ.ld staff
recommends that the cit~y contll1ue to work with the developer.
Recommendation/N ext Steps
As described in the alnended ll1terim agreeme11t, by April 15, 2007, the Redeveloper is to complete tile
following:
1. By December 15, 2006, tl1e Redeveloper "vill complete th"e follo\,\Ting:
. Provide a curre11t site specific market study related to the proposed l1ousll1g products; aI1d
2. By February 15, 2007, tl1e Rede\Teloper shall:
II Indicate abilityT to acquire additional properties voluntarily; and
II Submit a construction pro forma, revievvof market 'values and such other financial
information as the Authority may request in order to assess the feasibility of the project and
determine the price to be paid byT the Redeveloper to the Authority for the land.
t") By March 15, 2007, the Redeveloper shall:
o.
f) Complete fu1ancial analysis with Krass Monroe and Authority
4. By April 15, 2007, t11e Redeveloper s11all:
e Host a cOlnmunity ope11 110use to presel1t project plaI1s and solicit feedback frOIn the
11eighborhood; alld
s Obtain Autllority approval of a term sheet or letter of intent.
5. During tl1e term of tllis agreemellt, tlle redeveloper s11all also:
Request for Action, Page 3 of 2
December 11, 2006
. Present mOllthly progress reports to EDA, if requested; and
. If the Redeveloper determines tllat the Site is not economically feasible to develop,
the Redeveloper shall deliver to tile Autllority for its trnrestricted use at no cost to
the Authority all ,vork product, market analysis, architectural and engiI1eering
reports, construction budget, research materials and other documentation produced
for the Site.
Undertakings of the Authority.
1. The Autllorityr agrees to cooperate vvith the Redeveloper in the Redeveloper's undertakulgs, aJ.ld
agrees that during the term of this Agreement the Authority vvill not negotiate \'\lith any third
party in connection with rede"velopmellt of the site.
2. TIle Authority vvill take the follo\vmg actions:
m By March 15, 2007, deterlnine the Autllority's and the City's wi1fu1g11ess to ameIld its
comprehensive plan and ZOlllllg to accommodate tile proposed project, if necessary; al1d
12 TllIougll April 15, 2007, negotiate the Term Sheet \vitl1. tlle Redeveloper.
Summary
No funds have yet been expellded with Krass Monroe on a finallcial analysis. It is staffs intent tllat tlle
foIlovvlllg EDA updates would be presented the first part of 2007:
8 February EDA meetlllg - presel1t results of market study a.Ild discuss agreements with
property OWl1ers.
0 April EDA meeting - present results of fi11ancial feasibility.
& May EDA meeting - present results of commwuty open 11ollse.
Attachment(s)
e Interiln agreement
0 Adde11dumfamended timeli11e
8 Engagement Letter McComb Group, Ltd.
. Map
. Proposed site plall
First Amendment
INTERIM AGREEMENT
This INTERllvI AGREEMENT first e11tered into and effective tlle 28tl1 day of August,
2006, by and between the EC0110miC De\Telopment Authority in and for the City of Nevv Hope,
Mirmesota, a Mirmesota public body corporate and politic (tl1e "Authority") and Delkar, LLC
(the "Redeveloper").
WHEREAS, The 62nd A \Tenue Redevelopment site (the "Site") COllSists of approximately
0.86 acres of land vvith three tax parcels at 7601, 7621, and 7641 62nd Avellue North. The Site is
vacant land oW11ed by the city of N e,,\T Hope.
V\THEREAS, tl1e Authorit~y desires for the vacant Site to be developed as market-rate far-
sale hOUSlllg or mixed use de\ielopment.
VVHEREAS, the Redeveloper is proposlllg to 111clude tl1e Site in the redevelopment of
6113 West Broadvvay Avenue (tl1e "Project") and has requested tllat the Authority 11egotiate
exclusively ,'\rith tlle Redeveloper wIllie the Project is being studied.
WHEREAS, tile Autl10rity at the October 23, 2006, EDA lneetlll.g was gellerally
sllpportive of the concept presented by tl1e Redeveloper and directed that staff update the
Authorit)T ill. December and amend the current agreement and timeline; and
WHEREAS, tIle Autl10rity is willing to negotiate exclusively Witll the Rede~veloper lU1til
May 15, 2007, provided tl1at amended deadlines for certain lnilesto11es described belo\v are met.
NOVV, THEREFORE, in consideration of tl1e premises all.d mutual obligations of the
parties COl1tained 11erein, eacll of tl1em does hereby agree as follows:
1. Internn Nature of Agreelne11t. The Authority alld the Redeveloper agree that
this Agreement is intellded to be preliminary in nature. Before tll.e Authority and the
Redeveloper can make a decisio11 011 \,vhetl1er to proceed "vitll tll.e Project, it \"rill be 11ecessary to
assemble and consider i1uorlnatio11 relating to tl1e economics, site assembly, p11asll1g,
e11virolunental relnediatio11 and otl1er aspects of the Project. TIle purpose of this Agreement is
to allow tile Redeveloper all opportmlity to asselnble such informatioll, to prepaxe a
prelimll1ary cOllcept plall. and to negotiate ,,\rith the Authority C011Cen1.lllg tile appro.val of a term
s11eet (tl1e "Term S11eet") 1,,yith a vieV\T to e\lentual execution of a contract for private
redevelopment (tl1e "Redevelopme11t Agreemellt") \vlLic11 will set forth the rights aIld
respollsibilities of the Authority alld the Redeveloper \vith respect to the Project.
2. U11dertaku1gs of tlle Rede"veloper.
G: \ CommDev \ Curtis \ Mise Housing \ amended Interim Agree for city O'vvned parcels at 62nd A ve.doe
(a) By December 15, 2006, the Redeveloper will complete tIle follo\ving:
. Provide a current site specific market stud}! related to the proposed
hOUSlllg products; and
(b) By February 15, 2007, the Redeveloper shall:
. Indicate alJility to acquire additional properties voluntarily; a.lld
. Submit a construction pro forma, revieV\T of market values and such
other financial information as the Authorit)T may request in order to
assess the feasibility of tile project and determine tlle price to be paid
by the Rede'veloper to the Autllority for the land.
(c) By March 15, 2007, the Rede\Teloper shall:
B Complete f:i11ancial analysis vvith Krass Monroe and Authorit,y.
(d) By April 15, 2007, the Redeveloper shall:
B Host a community opell house to present project plans and solicit
feedback from the neighborhood; and
II Obtain Authority approval of a term sheet or letter of llltellt.
(e) During tIle term of this agreelnellt, tlle rede\Teloper shall also:
B Presellt mOllthly progress reports to City COUllCil, if requested; and
II If tl1e Redeveloper determines that tlle Site is not eco11omically
feasible to develop, tlle Redeveloper shall deliver to tl1e Authority for
its UllI'estricted use at no cost to tile Authorit~y all work product,
market analysis, architectural a11d ellgineering reports, construction
budget, researc11 materials and other documentatioll produced for tlle
Site.
3. Undertakings of the Authority!.
(a) T11e Autl10rity agrees to cooperate with tl1e Redeveloper in the
Redeveloper's undertakings, and agrees that during the term of this Agreeme11t
tIle Authority will 110t negotiate "vith any third party III calu1ectioll vvith
redeveloplnent of tl1e site.
(b) Tl1e Autl10rity ,,,rill take the follo\,\rll1g actions:
G: \ CommDev \ Curtis \ Misc Housing \ amended Interim J\gree for city ovvned parcels at 62nd A ve.doc
. By March 15, 2007, detern:tine the Authority's and the City's
"\tvillingness to amend its comprellensive plan and zoning to
accommodate tile proposed project, if necessary; and
. Through April 15, 2007, negotiate the Term Slleet with the
Redeveloper.
4. Responsibility for Costs and Redeveloper Deposit.
(a) During the term of this agreeme11t, the Authority and the Redeveloper
agree to split equally fees incurred by the Authority's redevelopment
Council, Krass Monroe. The budget for these costs is not to exceed $5,000.
If the Authority and the Redeveloper agree, the budget for these costs can
be increased vvith an addendum to this Agreement.
(b) The city shall be responsible for the fees and costs of city consultants as a
result of tllis agreement including the city' engineer, Bonestroo Rosene
Anderlik & Associates; the city attorney, Jensen & Sondrall, P.A.; aIld tile
city planner, Northvvest Associated Consultants.
(c) The Redeveloper 511a11 be responsible for:
(1) fees and costs of its counsel and consultants such as fiIla11Cial,
ellgineerlllg, and arcl1.itectural ser\Tices; aI1d
(2) the cost of allY predeveloplne11t activities such as enviromnental
analyses, soil borings, market studies, or surveys performed by tile
Redeveloper.
6. City alld Authoritv Use of Work ProdllCt. If the Rede"veloper decides 110t to
proceed \'vith redeveloplnent of the Site, the Redeveloper shall 111 alee the luarlcet analyses aIld soil
and engineering reports available at no cost to tIle City and the Authority for their unrestricted
use.
IN 'VITNESS WHEREOF, the parties l1a\Te caused this Agreeluellt to be duly executed in
each of their 11illnes as of the date first above w1ittell.
G:\CommDev\Curtis\1\1isc Housing \ amended Interim A:gree for city o\vned parcels at 62nd Ave.doc
ECONOI\1IC DEVELOPMENT AUTHORITY
IN Al\TD FOR THE CITY OF 1\TEW HOPE, MIJ\T1\TESOT A
B)T: Date:
President (Date of Amendment)
By:
Executive Director
Dellear, LLC
By: Date:
Its: (Date of A111endmellt)
G: \ CornmDev \ Curtis \Misc Housing \ amended Interim Atree for city o\."Vned parcels at 62nd A ve.doc
November 28, 2006
Mr. An\var Abdel-Karim
5400 Matterhorn Drive
Fridley, Minnesota 55432
Dear Mr. Abdel-Karim:
In response to a request from Franl( Dralce, \ve have prepared an engagen1ent letter to conduct
market research for a 36-unit to\vnhouse development at 62nd and \Vest Broadvvay in Ne\v Hope,
Minnesota.
WORK PROGRAl\1
The vvork progralTI described below contains descriptions of the worl( tasles to determine market
potential for to\vnhomes at the proposed site. Specific \vork taslcs include:
. Site Evaluation
The proposed development site \viII be inspected to evaluate its physical characteristics
and suitability for residential developlnent. Factors to be considered include, but are not
liInited to: location, size, physical characteristics, and relatiol1ship to other uses in the
area.
.. Market Area
The 111arket area for the proposed townhOlne development \vill be identified. The lnarket
area \viII be deterlnined based 'on comlTIunity size, geography, and MCC0111b Group
experience. Demographic characteristics and trends in the market area will be analyzed
to determine housing demand including population, household gro\vth, household
income, building permits, and other factors that support housing delnand.
. Residential Homes Sales
Residential h0111eS sales in the Inarket area \viII be evaluated including average and
Inedia11 sales prices, nUlnber of units sold, and other pertinent data.
The results of our work \vill be documented in a final report designed to lneet client needs. The
report \vill contain appropriate graphics, tabular inforlnation, and SUlnmary of principal findings,
conclusions and recomlnendations.
1\1r. Anwar Abdel-Karim
November 28, 2006
Page 2
QUALIFICATIONS AND EXPERIENCE
McComb Group, Ltd. is a full-service retail and real estate consulting firm specializing in market
research and financial feasibility. The firm has extensive experience in the retail industry and
has conducted market research for retail stores and shopping centers of all types including
regional malls, community centers and specialty centers.
McComb Group, Ltd. has a team that is qualified to conduct the research described in this
proposaL McComb Group's professional staff associated with this engagen1ent includes the
following:
. James B. 1.1cComb, President, founded the predecessor of McComb Group in 1974
following six years as a Inember of the corporate staff with Dayton Hudson Corporation.
His experiences at Dayton Hudson and daily association with merchants and shopping
center developers provided the impetus for McComb Group's approach to shopping
center and retail market research and financial feasibility, wI1ich includes strong elements
of design and merchandise sensitivities. The firm's approach to shopping ce11ter research
and marketing has undergolle continuous development and refinement over the past 20
years.
+ William A. Gorton, Executive Associate, has over 25 years experience developing
superlnarkets and retail shopping centers, representing supermarket chains as \vell as
prolninent independent supermarket o\vners. Mr. Gorton provides advice and assistance
related to real estate development, leasing and contract negotiations, business
acquisitions, project InanageInent, sales forecasting, site evaluation and l11arket analysis,
financing, capital planning, financial forecasting, business planning, strategy
developlnent, business develoPlnent and the marketing of pro graIns and services.
Mr. Gorton has provided these services \vhile eInployed by Fair\\iay Foods, Inc.,
subsidiary of Holiday Stationstores, Inc.; Kohl's Food Stores, Inc., subsidiary of the
Great Atlantic & Pacific Tea Company; SuperValu, Inc.; Loblaw's, Inc.; and Stearns
Banl( N.A. 81. Cloud,:MN. He received a JD from WiIlialn Mitchell College of Law and
is a melnber of the Minnesota State Bar Association.
. Linda Oie, Senior Associate, conducts 111arket researc11, demographic and consumer
analysis for client engagelnents. Ms. Oie manages the firm's geographic information
systems (GIS) and demographic databases using a variety of computer platforms and
proprietary software.
Prior to joining McComb Group, Ms. Oie was elnployed as Marl(etplace Il1foflnation
Manager at SuperValu, Inc. Her responsibilities included conducting strategic consumer-
based analysis of existing and prospective supermarkets, profiling SuperValu customers,
and delineating trade areas for existing and proposed stores.
. Susan N ache, Consultant, performs Inarl(et research, demographic analysis, and
Mr. Anwar Abdel-Karim
November 28, 2006
Page 3
consumer research tasks. Ms. Nache conducts consumer research analysis and cross-
tabulation on McComb Group's survey processing software; and is familiar with software
programs used by McComb Group for financial feasibility and statistical analysis.
Mr. McComb will be responsible for managing and directing the overall research program and
will participate directly in findings and conclusions. Individual \\rork tasks will be assigned to
personnel within the firm based on qualifications and experience.
BUDGET
The professional fees for the services and expenses outlined in this proposal total $3,800 and \vill
be performed at a price not-to-exceed that amount. The budget is based on the amount of time
required to perform the work tasks and our normal hourly billing rates of $250 for principals,
$190 for executive associates, $150 for senior associates, $100 for associates, and $75-$100 for
consultants.
Company policy requires a retainer of approximately one half the estimated budget for the
project or $1,900. The retainer \vill be applied to the final invoice as a credit for billing of
professional services and expenses. The remaining $1,900 will be due upon delivery of the final
report.
Standard billing terms are net ten days. A finance charge of 1.5 percent will be charged on all
ul1paid balances outstanding more than 30 days.
REPORT PURPOSE
This proposal was prepared with the understanding that the results of our \\tor!( will be sublnitted
to the City of New Hope in support of its development application. Our report \vill be prepared
for that purpose and will be subject to the foIlo\ving qualifications:
. Our analysis will not ascertain the legal and regulatory requirelnents applicable to this
project, including zonit1g, other state and local goverl1ffient regulations, permits and
licenses. No effort \vilI be made to determine the possible effect on theproPQsed project
of present or future federal, state or local legislation, or an)' environmental or ecological
matters.
. Our report and analysis will be based on estimates, assumptions and other inforluation
developed from research of the market, knowledge of the industry and discussions \vith
the client. Some assumptions inevitably will not materialize and unanticipated events
and circumstances may occur; therefore, actual results ac11ieved will vary from the
analysis.
. Our analysis will not evaluate management's effectiveness or be responsible for future
Inarketing efforts and other managelnent actions upon vvhich actual results are dependent.
. Our report will be intended solely for the purpose described above and should not be used
for any other purpose without our prior vvritten perlnission. Permission for other use of
the report vvill be granted GIlly upon Ineeting company standards for the proposed use.
Mr. An\\Tar Abdel-Karim
November 28, 2006
Page 4
These qualifications will be included in our final report. If the report is used for purposes other
than specified above, we reserve the right to review the lnaterials for proper use of our work.
ACCEPTANCE PROCEDURES
To indicate acceptance of the proposal, please sign a copy of the proposal and return it to us
together \vith your check for the retainer as authorization to proceed with tllis engagement.
"V\T e appreciate the opportunity to submit this proposal and look forward to hearing from you
soon. If you have any questions concerning the proposal, please call me at (612) 339-7000.
Accepted By: McComb Group, Ltd.
Company:
T i tl e :
James B. McComb
Date: President
Page 1 of 1
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62nd Avenue North, New -Hope, Minnesota
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READ IHPORTANT DISCLAH..1ER INFORHATION
Property 1D .~ppt'oxjiliate Piopeity Perimeter Approximate Property ,A,rea
05-118-21-22-0032 442 ft. 12,206 sq.ft. = 0.28 acres
PrODertv Address r"'iar"ket Va] ue Totai Tax (2006)
6073 QUEBEC AVE N NEW HOPE, fYlN 55428 $214,000 $2,739.34
,The data contained on this page is derived from a compilation of records and maps and may contain discrepancies that can only
be disclosed by an accurate survey performed by a licensed land surveyor. The perimeter and area (square footage and acres)
are approximates and may contain discrepancies_ The Information on this page should be used for reference purposes only.
Hennepin County does not guarantee the accuracy of material herein contained and is not responsible for any misuse or
nlisrepresentation of this information or its derivatives.
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