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021207 EDA CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North February 12, 2007 EDA Meeting will commence upon adjournment of the City Council Meeting President Martin Open1 Sr. C0l11111issioner Andy Hoffe C0111111issioner Karen Nolte C0111111issioner Steve SOil1111er C0111111issioner Daniel Stauner 1. Call to order 2. Ro 11 call .") Approval of regular I11eeting 111inutes of January 8, 2007 J. 4. Update regarding the Northgate project, its financial feasibility and request to tern1inate interin1 agreen1ent (in1proven1ent project no. 811) :J. Adjournn1ent . CITY OF NEW HOPE 4401 XYLON A \lENUE NORTH NEvV HOPE, MINNESOTA 55428 EDA Mill.utes January 8, 2007 Regular Meeting City Hall CALL TO ORDER President Opem called the meeting of the Economic Development Authority to order at 8:05 p.m. ROLL CALL Presen t: Martin Opem Sr., President Andy Hoffe, Comnlissioner Karen Nolte, COl1lmissioner Steve S01l1rner, Commissioner Daniel Stauner, Commissioner Staff Present: Dan Donahue, City Manager Kim Berggren, Community Development Assistant Shari French, Director of Parks & Recreation Curtis Jacobsen, Con1n1unity Development Specialist Guy Johnson, Director of Public ,V orks \ialerie Leone, City Clerk I(irk McDonald, Director of Conlmunity Development Steve SOlldralt City Attorney Vi11ce VanderTop, Assistal1t City Enghleer APPROVE MINUTES 1\.1otion "vas lnade by COill111issioner Hoffe, seconded by Commissioner Nolte, to approve the Regular Meeting Minutes of December II, 2006. All present voted in favor. Motion carried. IMP. PROJECT 811 Presiderlt Open1 iIltroduced for discussion Item 4.. Update regarding the Item 4 Nortllgate market study and possible involvement/participation in the project by Northvvest Con1ffiunity Revitalization Corporatiorl (NCRC) (in1proven1ent project no. 811) Ivlr. Curtis Jacobsen, community development specialist, reported that the I' Nortllgate TO\VIlhornes Market A.11alysis vvas con1pleted on Decen1ber 15, 2006. He illustrated the market area that encolllpassed parts of BrooklYI1 Park, Brooklyn Center, Crystal, Robbinsdale, Maple Grove, and Plymouth. Mr. Jacobsen iI1dicated the study sho\ved that to\Vl1l1omes in Ne\v Hope are being offered in tlle price raJ1ge of $132 to $148 per square foot. He stated SaIne I1eigllboring communities have to\vnl1oll1es i11 the range of $111 to S125 per square foot, but there are also developments \vitll prices up to S170 per square foot. He stated the Northgate area is considered to be a slightly \veaker site than either \'^1innetka Greens or Winnetka TO\,\711l1on1es and pricing could be in the 5125 to $135 per square foot raI1ge. :MI. JacobseIl provided average and n1ediaI1 household incon1e data. EDA 1\1eetiIlg Page 1 January 8, 2007 Mr. Jacobsen reported that the Northvvest Community Revitalization Corporation (NCRC) may be interested in participating with the developer on th.e project. He stated Kris 1.1adson, executive director of NCRC, and An\,\Tar Abdel-I<arim, developer, will be in attendance to aJ1SVver questions. He commented that NCRC can be a valuable partner vVit1l their experience and fi11ancial contributions. :t\1r. Jacobsen indicated the participation of NCRC in the project may require a nlodification of the site design to iIlcorporate units \,vith ground floor living to accommodate accessibility issues. He illustrated the existing proposed building elevation and site plan. 1\1r. Jacobsen asked the EDA for comments regarding the market study and \'\Thether the EDA \'\Tould support the partnership between NCRC and the developer. He pointed out that tile importance of proceedhlg with the next step to obtain a financial analysis from Krass Monroe. It \,\Tas noted tl1at the 55,000 cost of the financial analysis vvould be shared 50/50 bet\'\Teen the developer and the city. President Openl recalled tllat the original proposal was for nlarket-rate 110using to dra\,\i average or above-average income level residents to Ne\v Hope. He expressed concern vvith the recommendation for lo\ver per square foot price ranges. He noted NCRC ,vas recently involved vvith a to\vnhome developnlent in Ne\'\T Hope (Sims Park) that is attractive but is 110t conlpletely sold. He pointed out tllat NCRC's il1volvenlellt sllould be disbursed througllout the nortlT\vest area iIlcluding Maple Grove alld Plymouth rather thall being concelltrated in one city. He 110ted '\vhile the developer nlay see a benefit of parhlering vvith NCRC" he questioned the concept of reduced housing density and the feasibility of produci11g a market-rate 110using project. Council1\1enlber Hoffe inquired of the projected cllanges to the plans in order to accoD1modate single-level Ullits. lvIr. Jacobsen stated he is not certain but suggested the EDA alIoY\; the developer or a representative of NCRC to address tIle EDA. He noted some issues '\vill not be kno\vn until con1pletion of tlle fillancial feasibility. COD111lissioner Nolte questioned potential environlnental concerns of the gas station property. 1\1r. Jacobsen indicated the city has copies of an . envirollmental inlpact study that \vas done previously on the site, and t11e soil problenls vvere considered il1inin1al. He noted the in teriIn agreen1ent addressed tIle soil contanlination issue alld removed the city from any potential liability for cleall up costs. Conllllissiorler Nolte pointed out that additional clean up costs could negatively impact tIle feasibility of the project no n1atter "\"1ho is responsible for the costs. The EDA shared concerns regarding otller to'\'\Tnll0ille conlpetition, the city's reluctance to provide financial assistallce other than the three lots, the market demand for ground-level Ul1its, uncertainty of finallcial feasibility \vith less than 36-unit hOUSirlg density project, the desire for nlarl<et-rate housing, and EDA 1vIeeti11g Page 2 January 8, 2007 tlle need to have a revised proposal before expending funds for the fina11cial analysis bv Krass Monroe. .I .I 1\1r. Jacobsen questioned \^lhether the EDA supported the involvement of NCRC with the project. President Opem noted NCRC must decide \"lhether they 'Vvish to proceed \vith some type of proposal. The EDA advised the developer of its desire to revieV\T the revised proposal of reduced housing units (to include modifications to accommodate NCRC's criteria) prior to expending funds for a financial analysis by Krass Ivlonroe. ADJOURNMENT Ivlotion \'\Tas made by Commissioner Hoffe, seconded by President Opern, to adjourn the meeting. All present voted in favor. Motion carried. The Ne\v Hope EDA adjourrled at 8:30 p.m. Respectfully submitted, ~~ Valerie Leone City Clerk 4 EDA MeetiIlg Page 3 J aJ.1uary 8, 2007 EDA Request for Action OrigiIlating Department Appro.ved for Agenda Agenda Section Community Development February 12, 2007 EDA (J' Item No. By: Kirk McDonald, Director CD \ ~. Curtis Jacobsen, CD Specialist By: .'i #4 Kim Berggren, CD Assistant f( Update regarding the Northgate project, its financial feasibility and recommendation to terminate interim agreement (Improvement Project No. 811) Requested Action Staff requests to update tile ECOll0miC Development Autllority (EDA) on the developer's progress related to tile proposed rede"velopment of the city-o\^ined parcels at 7601, 7621, and 7641 62nd A venue and the financial feasibility! of proceedulg vVitll tlle development under the currellt parameters established for the project. Should the EDA concur tllat the project is 110t feasible, staff recommends that the interim agreement for tllis development project be terminated. Tile developer "vill be presellt at the meeting and is a\vare of aJ.1d in agreement vvith staff's recomme11dation. Policy/Past Practice Strategic goal number 3 ill the 2006 City! PlaIl is to ellCQUrage maintenance, redevelopme11t, aI1d relllvestmellt of existll1g properties to improve the tax base. Background T11e EDA e11tered into aIL lllterim agreement regardi11g the potential rede'velopment of the properties located 011 tIle sout11 side of 62nd A ve1lue with Delkar, LLC 011 August 28, 2006, and agreed to exclusively 11egotiate \rvitl1 tl1em provided that certalll milesto11es ll1 the agreelnent vvere met. The origi11al agreemellt extended up to December 15, 2006, aJ.ld was the11 extended tllrough all alne11dmellt to May 15, 2007. The EDA, staff aIld tile developer 11ave been. coordinatiI1g on tllis pote11tial project for tl1e past six m011tl1s. BOtll staff and tile de.veloper agree tl1at it is either tilne to lnove for\vard on tile project ill. some fashio11 or to llUllif)T the agreement. MOtiOIl by ( S2;;;jjIII1A./ Secolld by 7)(;~tL ft - , at? It.f!./Yl€-vtL To: ~.. ? /t~'/'.')/Lllta~,t{/ ./ {/ 1:\RFA\PLANNING\PLANNING\Q - 62nd Ave Swift Station-Anwar Karim-update Feb 12.07.doc Request for ACti011, Page 2 of 2 February 12, 2007 At the J a11uary 8, 2007, EDA meeting, an update on the project \J\Tas presented including the results of tl1e market stud)T by the McComb Group, Ltd., for Delkar, LLC. The market study suggested that this particular location \>vas slightly vveaker than either the Winnetka Green or the Winnetka To\vnhome sites. As such, pricing in this area vvas anticipated to be in the $125 to $135 per square foot range. The EDA shared concerns regarding other to\vnhome competitioll, the cityr's reluctance to provide other fulancial assistance to the project, the market demand for tlle type of unit proposed, the uncertali1. financial feasibility, the desire for a project "vith less than 36-units, the desire for market-rate housing and the need to see a revised proposal prior to expending funds for a financial analysis by Krass Monroe. The developer was advised by the EDA of its desire to revie\v the re\Tised proposal of reduced housing units prior to proceeding vvith Krass Monroe's analysis. Staff met \>vitll the developer on January 31, at vvhicll time the developer provided information related to the land costs 011 the site (see attachmel1.t). The preliminary i1uormation pro"vided sho\ved tl1.at there \,vas little potential for success of the larger project in either the 36-unit or 27-unit configuration without additio11al assistance from tl1.e city or some other governmental elltit)r. The 36-unit development sho\ved a $415,166 shortfall in land costs. VVhile the 27-unit development sho\ved a shortfall of over $992,000. In looking at tile project furtller the de"veloper also considered just the eastern four lots, the old gas statioll site aJ1d tl1e city's tll.ree lots. This scel1.ario also shoy\Ted a sllortfall regarding land costs for a 12-unit development. A 13-unit development on the smaller developmel1.t site vvould SllovV a profit of $54,121. Staff informed the developer that it did 110t feel tile EDA would support either additional funding or a smaller project and that perhaps the best option was to termiI1.ate tl1e agreement. Next steps TIle EDA vvilllla\Te to COllsider \vhether tl1ey vvisI1 to consider an additional subsidy! to tl1e project be)T011d tIle contributiol1. of land and/or if they vvish to proceed \J\Titl1 a smaller project vvhich may be financially feasible. If 11eitI1er alternative is acceptable, tIle EDA sllould determine if tlle interim agreemel1t sllould be terminated by mutual COl1sellt of both parties. If tl1e agreement is terminated, the owner of tlle gas statio11 propertyT vvill place tl1.e property back on tlle market for sale. TIle OWl1er l1as indicated that he 1J\Tould be \J\Tilli11g to sell tlle property to anotl1er de\Teloper for a rede"veloplne11t tl1at could include all properties. Recommendation Staff recommends that if the EDA y\iants to continue to \'York \Vitll the developer 011 tile project and eitller C011sider a smaller project or cOIlsider additio11al subsidies to the project, that tIle city proceed vvitl1 a f:il1.ancial aJ1.alysis with Krass Monroe, including a calculation of the mll1.imum amount of said potential subsidy to Inake the project successful. If fuese considerations are ll0t acceptable to tile EOA, staff recommends that the EDA approve a matio11 to termi11ate tIle interim agreement. Staff appreciates tl1e developer's cooperatioll tllroug11out tllis process, but does 110t 'lievv the project as being feasible at tlus mne. Attachment(s) Developer's Estllnate Cost per Lot Original Interim Agreement First Amendment to Interim Agreement Site Plan and Maps Northgate New Hope Project Estimated Cost of Lot COST Description I 36 Units ! 27 Units 12 Units I 13 Units I i i I i i Development Fees i $1 31, 1661 $98,375 $43,7221 $47,366 ] City Fees i $4,0001 $4,000 $4,000 i $4,000 I Land Acquisition Cost $2,200,0001 $2,200,000 $600,003 ! $600,003 Demolition Cost $350,000 I $350,000 $50,000 I $50,000 Clean up Cost $75,000 ! $75,000 $75,000 I $75,000 Streets / Curbs / Utilities I $175,000 i $155,000 $75,000 $75,000 i i TOTAL $2,935,1661 $2,882,375 $847,725 $851,369 i i Cost of Each Lot $81,5321 $106,755 $70,644 i $65,490 ! I .j i Acceptable Lot Cost $70,000 $70,000 $70,000 i $70,000 ! i I I I Profit (LOSS) Per Lot I -$11,532 -$36,755 -$6441 $4,510 TOTAL Profit (LOSS) i -$415,166 -$992,374.50 -$7,725 $54,121 Architect i i Engineering I I Grading I I Storm Water Landscaping i Legal i i J ! ; I ! ! Attachment A INTERIl\f AGREE:MENT This WTERIM AGREEI\1ENT entered into effective the 28th day of August, 2006 by and betvveen the Economic Development Authority in and for the City of New Hope, I\111mesota, a Minnesota public body corporate and politic (the "Authority") and Deleari, LLC (the "Redeveloper"). WHEREAS, The 62nd Avenue Redevelopment site (the "Site") consists of approximately 0.86 acres of land \vith three tax parcels at 7601,7621, and 7641 62nd A.venue North. The Site is vacant land owned by tIle city of New Hope. WHEREAS, the Authority desires for tIle vacant Site to be developed as market-rate for- sale housing or mixed use development. WHEREAS, the Redeveloper is proposing to include tile Site in the rede\Telopment of 6113 West Broadway Avenue (tIle "Project") and has requested that the Authorit)T negotiate exclusively with the Rede.veloper \vhile the Project is being studied. WHEREAS, the Autll0rity is \\Tilling to l1egotiate exclusi\Tely with the Redeveloper Ul1til Decenlber 15,2006, provided that deadlines for certain milestones described beloyv are met. NOW, THEREFORE, in consideration of tile premises and mutual obligatiol1s of the palties contained hereill, each ofthelll does hereby agree as follo\vs: 1. 11lterim Nature of Agreeluellt. TIle AutIlority and tile Redeveloper agree tIlat this Agreell1ent is il1tended to be prelimillary il11lature. Before the Authority and the Redeveloper can mal(e a decision on \vhether to proceed \vith the Project, it \vilI be necessary to assenlble and consider infolmatioll relatillg to tile economICS, site assembly, pllasing, environnlental remediatioll and otller aspects of the Project. The purpose of this Agreemel1t is to allo\v the Redeveloper an opportunity to asselnble suell infolmation, to prepare a preliminary cOllcept plall and to negotiate \vitIl the Authority concerning the approval of a tenn sIleet (the "Tenn Sheet") \~vitll a vie\\' to evelltual execution of a contract for private redevelopmellt (tile "Redevelopll1ellt Agreement") \vhich \vill set forth the rigllts and responsibilities of tile Autll0rity alld the Redeveloper vlitll respect to tIle Project. 2. UlldertakinQs of tIle Redeveloper. (a) By October 16, 2006, tIle Rede\ieloper \vill cOlnplete tIle foIIO\\Tillg: II SUbluit to the city lllfol1nati 011 about its qualifications and documentation sho\ving exanlples of invol\Tement ill other Sill1ilar redeveloplnent proj ects; alld B Identify melubers of developnlent teanl inclllding the arcllitect, ellgineer, and builder; and II Provide a timely market study related to the proposed housing, retail, and/or office products; and II In COllsultation with the Authority, the Cit)T, and City residents, develop a preliminary concept plan that includes the follo\ving properties: 7761, 7741, 7721, 7701, 7661, 7641, 7621, 7601 62nd Avenue and 6113 West Broadway. Indicate ability to acquire included prope1iies \lolUlltarily; and Ii Demonstrate that elements of the proposed proj ect, such as building heigllts, materials, landscaping alld setbacks, are appropriate for the site, and that the site plan adequately addresses parking, traffic circulation, and screeni11g; and II T'he Rede\Teloper, at its o\vn expense, shall conduct any aIlalysis it deems necessary of the env~irorunental and geoteclmical condition of the Site and the economic feasibility of the proposed rede\Telopment. (b) By November 20,2006 the Redeveloper shall: II Host a cormnunity opell 110use to present project plans and solicit feedback from the 11eighborhood; a11d s Submit a constluction pro forma, re\Tie\v of market \Talues and such other finaJ.lcial informatio11 as tIle Authority may request in order to assess tIle feasibility of tile project alld detemli11e tIle price to be paid by tile Rede\Teloper to the Authority for tIle land. (c) By December 15, 2006 the Redeveloper s11all: EI Obtaill Authority approval of a tenn sheet or letter of illtent. (d) DUrillg the te11ll of this agreelnent, the rede\Teloper sIla!l also: EI Present 1TI01ltll1y progress repo1is to City Council, if requested; aJ.ld EI If tIle Redeveloper detenni1les tllat the Site is not ecollo1nically feasible to develop, tIle Redeveloper sIlal1 deli,rer to the Authority for its um"estricted use at 110 cost to tile Autllority all work product, market analysis, arcIlitectural and engineering reports, COllstruction budget, researcll materials and other documentation produced for tIle Site. "'I Ullde1ialcings of the Autl1Ority. .). (a) TIle Aut110rity agrees to cooperate \vi t11 the Rede\ieloper ill the Redeveloper's undelialdngs, and agrees that during the te1m of tllis Agreell1ent 2 the Authori(y \vill not l1egotiate ,vith any third party in connection 'Vvith redeveloplllent of the site. (b) Tile Autholity \vill take the follo\\Ting actions: e By November 20, 2006, detelmille tIle Authority's and the City's willingness to amend its comprehensive plan and zoning to accormnodate tIle proposed proj ect, if necessary; and . Through December 15, 2006, l1egotiate the Term Sheet with the Redeveloper. 4. Responsibilitv for Costs and Redeveloper Deposit. (a) During the term of this agreemellt, the Autllority aJ.ld 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. lfthe Authority and the Rede\Teloper agree, the budget for these costs can be increased with an addendum to tllis Agreenlent. (b) TIle city shall be responsible for the fees and costs of city consult31lts as a result of this agreement including the city engineer, Bonestroo Rosene A1lderlik & Associates; tIle city attorney, Jensen & Sandrall, P.A.; and the city plarmer, Northvvest Associated COllsultants. (c) Tile Rede\ieloper sIlall be responsible for: (1) fees and costs of its counsel aIld conSllltants suell as fillaneial, ellgi11eering, alld architectural services; a1ld (2) the cost of any predeveloplnent acti\Tities suell as ellvirOlllilental anal)Tses, soil borillgs, marlcet studies, or surveys perfornled by tile Redeveloper. (d) Upon execution of tllis Agreement, the Redeveloper shall pay a n011- refundable fee of $500.00 to the Authority. The Rede.veloper shall also make all initial deposit of $2,500.00 to be applied by tIle Authority to reimburse costs aJ.ld fees incurred by the Authority for \vhicll the Rede'velaper is responsible Ullder this ParagrapIl 4. TIle Redeveloper sllall replenisll tIlis deposit ,'vheIl the balance falls belo\\' $500.00 UpOll request by the Autholity. (e) ill accordance \vitIl City polic~y, the Rede\Teloper \\Till pay allllormal and custol1lary City fees associated \\iith the plall revie\v and appro\Tal process. 5. TeITIl of Agreelnel1t. I-his Agreeluellt for exclusive l1egotiatiollS sllall be billding UpOll the parties Ulltil Decenlber 15, 2006, unless terminated SOOller by tIle Authority for tile Rede'veloper's failure to timely comply with any of the deadlines set forth in tI1is agreelnent or by ll1utual agreemellt of the paliies. 3 6. City and Authoritv Use of Work Product. If the Redeveloper decides 110t to proceed \\lith redevelopment of the Site, the Redeveloper shall mak.e the market analyses and soil and engineering reports available at 110 cost to the City and the Authority for their unrestricted use. IN WITl\TESS "'HEREOF, the parties ha'le caused this Agreement to be duly executed in each of their names as oft11e date first abo\'e \vritten. (signature pages fo 110 1V) 4 ECONOMIC DEVELOPMENT AUTHORITY ill MTD FOR THE CITY OF J\TE\V HOPE, MIN1\TESOTA By: Presidellt B)r: Executi\re Director Authority Signature Page - Interiln Agreenzent 5 Delcari, LLC By: Its: Redeveloper Signature Page -Interinz Agreenlent 6 First Amendment INTERIM AGREEMENT This INTERIM AGREEMENT first elltered into and effective the 28th day of August 2006, by and betvveen the Economic De\!elopment Autllori1:)! in and for the City of Ne\,\T Hope, 1\1innesota, a JvIinnesota public body corporate and politic (tile" Authority") and Delkar, LLC (tlle "Redeveloper"). WHEREAS, The 62nd Avellue Rede\Telopment site (the "Site") COllsists of approximately! 0.86 acres of land with three tax parcels at 7601, 7621, and 7641 62nd A venue North. The Site is \racant laJ.ld owned by the ci1:)r of Nevv Hope. VVHEREAS, the Autllority desires for the VaCa11t Site to be de\Teloped as market-rate far- sale housing or mixed use de"velopment VVHEREAS, tlle Redeveloper is proposlllg to include tile Site in tile redevelapme11t of 6113 "\^lest Broadway A\TellUe (tlle "Project") and has requested tllat the Autllorit}T negotiate exclusi\Tel)T \/\Titll tile Redeveloper vvhile tlle Project is be:ing studied. \^lHEREAS, tlle Au tll0rit)T at tlle October 23, 2006, EDA meeting \vas generall)T supportive of tile concept presellted by the Redeveloper aJ.ld directed tllat staff update the Authorit)T ill December aIld amend tile currellt agreement aJ.ld timellile; aJ.ld VVHEREAS, tIle Autllority is \tV~illing to 11egotiate exclusively \lVitll tlle Redeveloper until Ma}T 15, 2007, provided tllat amended deadlines for certain lnilesto11es described belo\,,' are met. NO\V, THEREFORE, ill COllsideratioll of tlle preluises aJ.ld mutual obligatiolls of tlle parties cOlltained herein, eacll of tllem does hereby agree as follows: 1. 111terim Nature of Agreemellt. The Authority aJ.ld the Redeveloper agree tllat tllis Agreement is intellded to be preliminar)! :in nature. Before tlle Autllority aJ.1d tile Redeveloper can make a decision on \Vhetller to proceed Wit11 the Project, it will be llecessary to asselnble and COIlsider information relating to tlle economics, site assembly, phaslllg, e11"VITOrUnel1tal remediatiol1 8l1d ot11er aspects of tlle Project. TIle purpose of tIus Agreement is to alloV\T the Redeveloper an opportunity to assemble such lllformation, to prepare a prelirnirlary cOllcept plan aIld to l1egotiate \~ritll tile .i\utllorit)T C011cenl11lg tIle approval of a term sl1eet (tl1e "Term Slleet") \\Titl1 a vie\\T to e\Tentual execution of a C011tract for private redevelopmellt (the "Redevelopment Agreemellt") wllich vv-ill set fortl1 tile rigIlts aJ.ld respollsibilities of tile Authority and tile Rede"veloper \vith respect to the Project. 2. Ul1dertakings of the Redeveloper. G:\ConunDev\COi\1l\1DEV\HOLiSING\62nd Avenue North Properties \ Interirn Agree Amended.doc (a) By December 15, 2006, the Rede\Teloper will complete the follo\ving: II Provide a current site specific market study related to the proposed housing products; and (b) By! February 15, 2007, tl1e Redeveloper shall: II Indicate ability to acquire additional properties \Toluntarily; and II Submit a construction pro forma, review of market values and such other financial informatio11 as the Authorit)' may' request in order to assess the feasibility of the project and determine the price to be paid by the Redeveloper to the Autl10rity for the land. (c) By March 15, 2007, the Redeveloper shall: IliI Complete financial analysis 1vith Krass Monroe and Authorityr. (d) By April 15, 2007, tl1e Redeveloper sl1all: EI Host a community open house to present project plans and solicit feedback from tl1e neighborhood; and III Obtall1 Authority appro\ral of a term s11eet or letter of inte11t. (e) During the terrn of this agreeme11t, the redeveloper sl1all also: EI Present monthly progress reports to City Councit if requested; and iii If the Redeveloper determines that tI1.e Site is 110t ecollomically feasible to develop, tile Redeveloper sllall deliver to t11e Authorit)l for its mu~estricted use at 110 cost to tl1e Autllority all vvork product market analysis, architectural aI1d engineering reports, construction budget, researcll materials and otller documentation produced for tile Site. 3. Undertakll1gs of the Autl1orityr. (a) The Autllority agrees to cooperate with the Redeveloper in tl1e Redeveloper's i111dertaku1gs, and agrees that during tl1e term of tllis Agreeme11t tl1e Authority Y\Till not negotiate Witll any tllird party ill cOlmection \vitl1 reclevelopme11t of t1le site. (b) TI1e Autllority \vill take tl1e follovvll1g actions: G: \ CommDev \ COMMDEV\ HOUSING \ 62nd A venue N~th Properties \ Interim Agree Amended.doc . Byl Marcil 15, 2007, determine tlle Aut11ority's and the City's \/villingr1ess to amend its compre11ensi\le plan and zoning to accommodate the proposed project, if necessary; and . Through April 15, 2007, negotiate the Term Sheet vvith the Rede"veloper. 4. Responsibility for Costs and Rede\Teloper Deposit. (a) During the term of tlus agreement, the Authorit}r and the Redeveloper agree to split equally fees incurred by the Autl1ority's redevelopment Council, Krass MOlTIOe. The budget for tllese costs is not to exceed $5,000. If the Authority and the Redeveloper agree, the budget for these costs CaJ.l be increased vvith an addendum to this Agreement. (b) The city' shall be responsible for the fees al1d costs of city consultants as a result of this agreement including the city engineer, BOllestroo Rosene Anderlik & Associates; the city attorne)T, Jellsen & Sondrall P.A.; and tlle city planner, Nortll\~est Associated C011sultants. (c) TIle Redeveloper shall be responsible for: (1) fees alld costs of its counsel aJ.1d COllsultants suell as financiat engi11eering, and architectural seT"vices; and (2) tIle cost of any prede\Telopment acti"vities suell as ell\iiro11l11 ental analyses, soil bOrillgS, market studies, or surveys perfonned by the Rede"veloper. 6. City and Allthoritv Use of Worle Product. If tIle Redeveloper decides not to proceed \vith redeveloplnent of tIle Site, tIle Redeveloper shall make the market analyses and soil al1d engineering reports available at 110 cost to the City and the Autll0rity for their unrestricted use. IN WITl\TESS \VHEREOF, tIle parties l1ave caused this Agree1l1ellt to be duly executed ill eacl1 of tlleir names as of the date first abO\ie \\flitten. G: \CommDev\COMMDEV\ HOUSING\62nd Avenue N6rth Properties \ Interim Agree Amended.doc ECONOMIC DE\TELOPMENT AUTHORlTY IN MTD FOR THE CITY OF NEW HOPE, MIl\Tl\TESOTA By: Date: President (Date of Anlendment) By: Executi\Te Director Delkar, LLC B)r: Date: Its: (Date of Anlendment) G: \ CommDev \ COMMDEV \ HOUSING \ 62nd A venue N Wth Properties \ Interim Agree Anlended.doc .:. c... =. '--' ;.. ~. ~ .:. .~.~.:.:~~~ i,~;n~h .so:;. ~?i~~~.~HENN~P-~~ .-- - ..' -' . - .... ~~,~-~f1\.\ii A~~. .~rl r'iOVICeCl eN: HenneDJn Count:')' J aX;Jayer ~ervlces "'<'k,::.L Y .JLUY V~ .' . . ., _ ,,,, ="'~ "_-" ="."..=-~~",c===.o."",,,,,,=,,,=,,=c=~==-=~_"'~-"=:=="=-"-'""''::'"..:;''''''''''''''''':::;:;:= 62nd .Avenue North, New Hope, fviinnesota : , ! i, I. i \ ! I , , ' ., I I : G2CIC ,~~ \ .,., , I 1 __ _ I 7"" .- i If ...... I , '" _lJ i ! 5 ,0.... I' o...:.o.:;;,l! . ...._0 '~H:; I t::~~..!O l. I I i ;::=:?:,,"!~....'l Vt~~ =- 1.:.::"'...... 1 11 'I I ;----- 1 ,I. i ~.._~,,-... 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