IP #993Request for Action
August 14, 2017
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Aaron Chirpich, CD Specialist
Agenda Section
EDA
Item Number
6
Agenda Title
Resolution approving purchase and redevelopment agreement with Regal Homes, LLC for the sale of 3751
Louisiana Avenue North (improvement project no. 993)
Requested Action
Staff requests that the EDA approve a resolution approving the purchase and redevelopment agreement for
the sale of the EDA -owned property located at 3751 Louisiana Avenue North. Staff request that the EDA receive
the staff presentation, open the public hearing for comments, pass a motion closing the public hearing and then
pass a motion approving the resolution.
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 selected builder.
Background
RFPs were sent to 20 builders marketing the lot located at 3751 Louisiana Avenue. The non-negotiable sales
price was set at $55,000. The EDA received three proposals from the following builders:
Regal Homes, LLC
Novak -Fleck Incorporated
Tollberg Homes, LLC
Staff reviewed the proposals with the City Manager, and designated Regal Homes as the "preferred by staff"
builder, as they have put forward the proposal with the highest anticipated home value and staff are impressed
with their recent work in New Hope. Regal Homes purchased two side-by-side scattered site lots from the EDA
in June 2016, and they have completed and sold the first home for $364,000. Their second home is under
construction with a contract price of $384,000. Regal has proposed the same home for 3751 Louisiana Avenue
that was built on their first lot. To ensure that all proposals are reviewed by the EDA, staff will cover the
primary attributes of each proposal during the EDA meeting. An overview of each proposal is given below.
Regal Homes Proposal Overview
• Two-story home design over full basement
• Above-average curb appeal with prominent front porch
• Mid/high-end trim package, cabinets, flooring, doors and fixtures
• Main floor fireplace
• Master suite with soaker tub and tiled shower
• Four finished bedrooms
• Three finished bathrooms, two full, one half
• Three -car garage
• 2,326 finished square feet, 3,229 total (900 sq./ft. unfinished basement)
I:\RFA\COMM DEV \ Development \ Q & R - Sale of Lot at 3751 Louisiana 8-14-17 Project 993.docx
Request for Action, Page 2
• Typical exterior finishes, vinyl siding with cultured stone accents
• Anticipated sales price $363,000
Novak -Fleck Proposal Overview
• Split -entry home design over garden view basement
• Above-average curb appeal
• Mid/high-level trim package, cabinets, flooring, doors, and fixtures
• Master suite
• Five finished bedrooms
• Three finished bathrooms, one full, two 3/4
• Three -car garage
• 2,430 finished square feet (both floors finished)
• Typical exterior finishes, vinyl siding with cultured stone accents
• Anticipated sales price $310,000
Tollberg Homes Proposal Overview
• Four -level home design
• Above-average curb appeal with prominent front porch
• Mid-level trim package, cabinets, flooring, doors, and fixtures
• Master suite
• Three finished bedrooms
• Two finished bathrooms, one full, one 3/4
• Three -car garage
• 1,460 finished square feet, 2,900 total (1,460sq./ft. unfinished basement)
• Typical exterior finishes, vinyl siding with cultured stone accents
• Anticipated sales price $299,900
Development Agreement and Next Steps
Statt has worked with the City Attorney to draft a purchase and redevelopment agreement for the sale of the
lot. The agreement ensures that the provisions set forth in the RFP will be met and sets the purchase price of
the lot at $55,000. The agreement included in the attachments is considered complete by staff and the City
Attorney. However, some minor revisions may be necessary once fully reviewed by the buyer. Any substantial
changes to the agreement would be brought to the EDA for approval.
Soil Investigation
The home that was torn down at 3751 Louisiana Avenue was built in 1960. Staff were able to review aerial
photographs of the site dating back to 1956. The historical photographs show no sign of previous structures on
the site. Therefore, staff have no reason to believe that unknown debris is buried on the site.
Recommendation
Staff recommends that the EDA approve the resolution approving the purchase and redevelopment agreement
for the sale of 3751 Louisiana Avenue North to Regal Homes, LLC.
Request for Action, Page 3
Attachments
• Resolution
• Builder Proposals
• Draft Purchase and Redevelopment Agreement
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 17-13
RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT
AGREEMENT WITH REGAL HOMES, LLC FOR THE
SALE OF 3751 LOUISIANA AVENUE NORTH
(IMPROVEMENT PROJECT 993)
BE IT RESOLVED by the Economic Development Authority in and for the City of New
Hope ("EDA") as follows:
WHEREAS, the City of New Hope initially acquired that certain real property located at
3751 Louisiana Avenue North and is deeding it to the EDA 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 City received an offer from Regal Homes, LLC, a Minnesota limited
liability company ("Regal Homes") regarding the sale and redevelopment of the real property lot
located at 3751 Louisiana Avenue North, New Hope, MN, and legally described as:
Lot 5, Block 3, Wonderland 1 st Addition, Hennepin County, Minnesota.
(the "Property").
WHEREAS, the EDA arrived at an agreement with Regal Homes, to sell the Property for
the purchase price of $55,000.00 upon all of the terms set forth in the RFP; and
WHEREAS, the EDA has accepted Regal Homes' offer and has presented a draft of the
Purchase and Redevelopment Agreement to Regal Homes, for its review, a copy of which is
attached hereto as Exhibit A ("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 Regal Homes for
the sum of $55,000.00, in order for Regal 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 Regal Homes, for the purchase price of
$55,000.00, with other terms and conditions as set forth in the Purchase and
Redevelopment Agreement attached hereto as Exhibit A, 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 Regal 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 14th day of August 2017.
Attest: � `►�'"���\ `� �\�
Kirk McDonald, Executive Director
Kathi kemken, Pr sl nt
PURCHASE AND REDEVELOPMENT AGREEMENT
This Purchase and Redevelopment Agreement ("Agreement") is made by and between
REGAL HOMES, LLC 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 August 2017. 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 3751 Louisiana Avenue North, New Hope, Minnesota, and legally described as "Lot 5, Block
3, Wonderland 1 st Addition, Hennepin County, Minnesota" (the "Property").
1. Purchase Price. The purchase price for the Property is Fifty -Five Thousand and No/100
Dollars ($55,000.00) (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 -
Three Thousand and No/100 Dollars ($53,000.00) 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 A 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.
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.
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 B and C, 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 B.
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C. Within one (1) year of Closing, Buyer shall complete the construction of the
single family home on the Property (the Improvements). The Improvements must
be consistent with all building and zoning requirements and the restrictive
covenants applicable to the Property.
The representations set forth in this paragraph shall be incorporated into appropriate documents
to be recorded against the Property (whether by declaration, restrictive covenants, or
development agreement as hereinafter defined) subject to approval by Seller and Buyer as a
condition of Closing.
5. Title Commitment and Policy.
a. Seller shall deliver to Buyer a Commitment for an ALTA Form B owner's policy
of title insurance (the "Commitment") issued by a title insurance company of
Buyer's choice ("Title Company") and covering title to the Property, in the amount
of the Purchase Price. Buyer agrees to pay the costs associated with the preparation
and issuance of the Commitment; Buyer shall pay the premium for the owner's
policy, if any, and the lender's policy, if any, along with the price for any
endorsements requested by Buyer or Buyer's lender.
b. Buyer shall have fifteen (15) days after receipt of the Commitment to review and
approve the title to the Property and to object to any exception to title that is
disclosed in the Commitment or which is otherwise discovered by Buyer. In the
event that Buyer does not within such fifteen (15) day period give notice to Seller
objecting to any such exceptions, then all such exceptions shall be deemed
approved and shall be considered a part of the Permitted Encumbrances. If Buyer
timely objects to an exception to title, then on or before the tenth (10) day following
Buyer's notice of exception, Seller shall remove the exception or notify Buyer that
Seller is unwilling or unable to remove the exception. Within five (5) days of any
notice by Seller that Seller it is unable to remove an exception to title, Buyer may
elect by notice to Seller to either:
(i) terminate this Agreement, whereupon all of the Earnest Money shall be
returned to Buyer and the parties shall be released from all further
obligations hereunder except obligations under this Agreement which
provide for continued exercise following the cancellation or other
termination of this Agreement; or
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.
6. Closing.
a. Closing shall occur on or before September 30, 2017 (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;
affidavit(s) in industry -standard form(s) stating that possession of the
Property is being delivered free of any mechan'ic's or statutory liens in
connection with work performed prior to closing; Seller is not a foreign
person or entity; and addressing such other matters as Buyer may reasonably
require.
7. Payments/Prorations. At Closing, Seller shall pay the cost of recording any instrument
(other than the Deed) necessary to place title in the condition required under this
Agreement, State deed tax, and all special assessments levied, pending or constituting a
lien against the Property as of the Date of Closing, including without limitation any
installments of special assessments and interest payable with general real estate taxes in
the year of closing. Seller will pay general real estate taxes payable in the year prior to the
year of closing and all prior years. Buyer shall pay at Closing the cost of the owner's policy
or lender's policy of title insurance (if any), sales tax (if any) resulting from the Closing,
the fees required for recording the Deed, the Purchase and Redevelopment Agreement, the
assessment agreement and restrictive covenants and all customary closing fees charged by
the Title Company or other closing agent, if any, utilized to close the transaction
contemplated by this Agreement. General real estate taxes payable in the year of closing
shall be prorated by Seller and Buyer as of the closing date based upon a calendar year.
Each party shall pay its own attorney's fees.
8. Condemnation. If, prior to the Date of Closing, all or any part of the Property shall be
condemned by governmental or other lawful authority, Buyer shall have the option of (a)
completing the purchase contemplated by this Agreement, in which event all condemnation
proceeds or claims thereof shall be assigned to Buyer, or (b) canceling this Agreement, in
which event the Earnest Money shall be refunded and this Agreement shall be terminated
with neither party having any rights against or obligations to the other except rights or
obligations under this Agreement which provide for continued exercise following closing
or cancellation or other termination of this Agreement, and Seller shall be entitled to any
and all condemnation proceeds.
9. Construction of Homes. Buyer agrees that it will construct a new single family home on
the Property. This covenant shall survive the delivery of the Deed.
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a. The single family home described in this paragraph is referred to as the
"Minimum Improvements."
b. The Minimum Improvements shall consist of one new single family home, and
shall be constructed substantially in accordance with the RFP Guidelines attached
as Exhibit D and the proposal approved by Seller on August 14, 2017 attached
as Exhibit D.
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 (3 0) 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
permanent financing necessary to enable Buyer or any successor in interest
to the Property, or any part thereof, to construct the Minimum
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
Property governed by this subparagraph shall be in a form
reasonably satisfactory to Seller.
(iii) If the conditions described above are satisfied then the Transfer will be
approved and Buyer shall be released from its obligation under this
Agreement, as to the portion of the Property that is transferred, assigned,
or otherwise conveyed. The provisions of this paragraph (iii) apply to all
subsequent transferors.
(iv) Upon issuance of the Certificate of Completion, Buyer may transfer or
assign the Minimum Improvements and/or Buyer's rights and obligations
under this Agreement with respect to such Property without the prior
written consent of Seller.
f. Buyer agrees that (a) it will use the Minimum Improvements as only a single family,
owner -occupied homes, (b) it will not seek exemption from real estate taxes on the
Property under State law, and (c) it will not transfer or permit transfer of the Property
to any entity whose ownership or operation of the property would result in the Property
being exempt from real estate taxes under State law (other than any portion thereof
dedicated or conveyed to the City of New Hope or Seller in accordance with this
Agreement). The covenants in this paragraph run with the land, survive both delivery
of the Deed and issuance of the Certificate of Completion for the Minimum
Improvements, and shall remain in effect for at least 30 years after the Date of Closing.
g. Buyer shall comply with all recommendations of the City Engineer.
h. Buyer's construction plans shall be approved by the City Building Official.
10. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer.
In the event that subsequent to conveyance of the Property or any part thereof to Buyer and
prior to receipt by Buyer of the Certificate of Completion of the Minimum Improvements,
Buyer fails to carry out its obligations with respect to the construction of the Minimum
Improvements (including the nature and the date for the completion thereof), or abandons or
substantially suspends construction work, and any such failure, abandonment, or suspension
shall not be cured, ended, or remedied within thirty (30) days after written demand from
Seller to Buyer to do so, then Seller shall have the right to re-enter and take possession of the
Property and to terminate (and revert in Seller) the estate conveyed by the Deed to Buyer, it
being the intent of this provision, together with other provisions of the Agreement, that the
conveyance of the Property to Buyer shall be made upon, and that the Deed shall contain a
condition subsequent to the effect that in the event of any default on the part of Buyer and
failure on the part of Buyer to remedy, end, or abrogate such default within the period and in
the manner stated in such subdivisions, Seller at its option may declare a termination in favor
of Seller of the title, and of all the rights and interests in and to the Property conveyed to
Buyer, and that such title and all rights and interests of Buyer, and any assigns or successors
in interest to and in the Property, shall revert to Seller, but only if the events stated in this
paragraph have not been cured within the time periods provided above.
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Notwithstanding anything to the contrary contained in this paragraph, Seller shall have no right
to reenter or retake title to and possession of a portion of the Property for which a Certificate of
Completion has been issued.
11. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in Seller
of title to and/or possession of the Property or any part thereof as provided in paragraph
10, Seller shall apply the Purchase Price paid by Buyer under paragraph 1 of this
Agreement as follows:
a. First, to reimburse Seller for all costs and expenses incurred by Seller, including but
not limited to proportionate salaries of personnel, in connection with the recapture,
management, and resale of the Property or part thereof (but less any income derived
by Seller from the Property or part thereof in connection with such management); all
taxes, assessments, and water and sewer charges with respect to the Property or part
thereof (or, in the event the Property is exempt from taxation or assessment or such
charge during the period of ownership thereof by Seller, an amount, if paid, equal to
such taxes, assessments, or charges (as determined by Seller assessing official) as
would have been payable if the Property were not so exempt); any payments made
or necessary to be made to discharge any encumbrances or liens existing on the
Property or part thereof at the time of revesting of title thereto in Seller or to discharge
or prevent from attaching or being made any subsequent encumbrances or liens due
to obligations, defaults or acts of the Buyer, its successors or transferees; any
expenditures made or obligations incurred with respect to the making or completion
of the Minimum Improvements or any part thereof on the Property or part thereof,
and any amounts otherwise owing Seller by the Buyer and its successor or transferee;
and
b. Second, to reimburse Buyer for the balance of the Purchase Price remaining after
the reimbursements specified in paragraph (a) above. Such reimbursement shall be
paid to Buyer upon delivery of executed, recordable warranty deed to the Property
by Buyer to Seller.
12. Notices. All notices required hereunder shall be in writing and shall be deemed to have
been duly given and received (a) two (2) business days after depositing of the same in the
mail if sent by regular, registered or certified mail, postage prepaid, to the party to whom
directed, at such party's address herein set forth; or (b) upon delivery, or attempted delivery
if delivered by overnight courier service or hand delivery. Any party shall have the right
to designate any other address for notice purposes by written notice to the other party in
the manner aforesaid. The addresses of the parties are as follows:
SELLER: Economic Development Authority in and for the City of New Hope
Kirk McDonald, Executive Director
4401 Xylon Avenue North
New Hope, MN 55428-4898
with copy to: Stacy A. Woods, New Hope Assistant City Attorney
Jensen Sondrall Persellin & Woods, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
BUYER: REGAL HOMES, LLC.
6216 Baker Road, Suite 200
Eden Prairie, MN 55346
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.
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: BUYER:
ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF NEW HOPE
By:
Kathi Hemken
Its: President
Dated: August , 2017
By:
Kirk McDonald
Its: Executive Director
Dated: August , 2017
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
REGAL HOMES, LLC
WE
1V11,+1V111IV. VV1V lJlUVV11
Its: President
Dated: August , 2017
The foregoing instrument was acknowledged before me this day of August 2017, 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
10
STATE OF MINNESOTA
ss.
COUNTY OF
The foregoing instrument was acknowledged before me this day of August 2017, by Melvin
Moore Brown, the President of REGAL HOMES, LLC, a Minnesota corporation, on behalf of said
corporation.
DRAFTED BY.•
Jensen Sondrall Persellin & Woods, P.A.
8525 Edinbrook Crossing, #201
Brooklyn Park, MN 55443
(763) 424-8811
11
Notary Public
Exhibit A
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.
12
Exhibit B
Restrie Ilve Covenants
See attached.
13
RESTRICTIVE COVENANTS
THESE RESTRICTIVE COVENANTS ("Agreement") dated effective the day of
, 2017, by and between 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 ("EDA") and REGAL HOMES, LLC, a Minnesota corporation ("Regal Homes").
RECITALS
WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between
the EDA and Regal Homes dated effective , 2017 ("Purchase Agreement"),
Regal Homes purchased the real property located at 3751 Louisiana Avenue North in the City of
New Hope from the EDA, which property is legally described as Lot 5, Block 3, Wonderland 1 st
Addition, Hennepin County, Minnesota, ("Property") which purchase closed on April 30, 2017;
and
WHEREAS, Regal Homes has committed to constructing a new residential home on the
Property pursuant to the terms of the Purchase Agreement; and
WHEREAS, the EDA and Regal Homes have agreed Regal Homes shall complete the
construction of the home as described in the Purchase Agreement within one (1) year of the date
of closing on the purchase of the Property; and
WHEREAS, the EDA and Regal Homes have agreed the EDA may levy a $20,000.00
assessment against the Property prior to Regal Homes sale of the Property with the completed
home if it is not being sold to an owner -occupant. Further, said assessment may be certified to
Hennepin County for collection with real estate taxes payable in a single installment; and
WHEREAS, compliance with the restrictions imposed by this Agreement are additional
consideration for the sale of the Property to Regal Homes.
NOW THEREFORE, for good and valuable consideration the receipt and sufficiency of
which is hereby acknowledged, Regal Homes agrees as follows:
AGREEMENT
1. Restrictive Covenants. Regal Homes hereby covenants and agrees with the EDA that the
Property is restricted by the following covenants:
a) The initial conveyance of the residential dwelling ("Dwelling") constructed upon
the Property will be only to "Owner-occupant(s)". "Owner -occupant" is defined as
an individual that purchases the Property from Regal Homes with a bona fide intent
to reside in the Dwelling as a primary residence; and
b) The Dwelling constructed on the Property shall be occupied only by the Owner -
occupant, and/or by the "Immediate Family Member(s)" of the Owner -occupant for
a period of twelve (12) consecutive months commencing on the date of initial
conveyance to an Owner -occupant. "Immediate Family Member" shall only mean
a parent, step-parent, child, step -child, grandparent, grandchild, brother, sister,
uncle, aunt, nephew or niece. Relationship may be by blood or marriage.
2. Release of Restrictions. The Property will be released from the restrictions imposed by
this Agreement as follows:
a) Upon the issuance of a Certificate of Occupancy for a Dwelling constructed upon
the Property and receipt by the EDA of an Affidavit signed by Regal Homes and
the Owner -occupant verifying the Owner -occupant's intent to occupy the Dwelling
as a primary residence the Property shall be released from the restriction stated in
paragraph 1(a) above.
b) The Property shall be released from the restriction of paragraph 1(b) above on the
one (1) year anniversary of the date the Property was conveyed in compliance with
paragraph 1(a).
3. Waiver by EDA. Notwithstanding the restrictions stated above, the EDA may waive the
restrictions stated above upon a finding of hardship or other extenuating circumstances
sufficient to justify the waiver in its sole discretion.
4. Agreement to Assessment. Regal Homes acknowledges and agrees the EDA may levy a
$20,000.00 assessment against the Property if: (a) the Property is not improved with a
single family house on or before , 2018; and/or (b) if Regal Homes sells the
Property with the completed home to a non -owner -occupant in violation of paragraph 1(a)
above. Further, Regal Homes agrees the assessment provided by this paragraph may be
certified to Hennepin County as a special assessment and collected with the real estate
taxes against the Property in a single installment.
5. Waiver by Regal Homes. Regal Homes expressly waives objection to any irregularity
with regard to any assessment levied against the Property per this Agreement or any claim
2
that the amount thereof levied against the Property is excessive, together with all rights to
appeal the assessment in the courts.
6. Additional Remedies. It is further understood that if Regal Homes or an Owner -occupant
should breach their respective obligations under this Agreement, the EDA will suffer
irrevocable harm from which a recovery of money damages would be an inadequate
remedy. It is therefore agreed that the EDA shall be entitled, as a matter of right, in any
Court of competent jurisdiction to a mandatory injunction restraining and enjoining
pending litigation, as well as upon final determination thereof, from attempting to violate
or violating this Agreement. It is further agreed that the EDA's rights to such injunctive
relief shall be cumulative with and in addition to any other rights, remedies or actions which
the EDA may have.
7. Regal Homes' Successors. This Agreement shall not be terminated by:
a) The voluntary dissolution of Regal Homes or any parent subsidiary or successor of
Regal Homes;
b) Merger whereby Regal Homes (or such parent subsidiary or successor of Regal
Homes) is not the surviving or resulting entity; or
C) Any transfer of all or substantially all of the assets of Regal Homes. In the event
of any such merger or consolidation or transfer of assets, the provisions of this
Agreement shall inure to the benefit of and shall be binding upon the surviving or
resulting entity to which such assets shall be transferred.
8. Running of Benefits and Burdens. All provisions of this Agreement, including the
benefits and burdens run with the land and are binding upon and shall inure to the benefit
of the assigns and successors of the parties to this Agreement, such that the provisions of
this Agreement shall restrict the Property, and subdivision thereof, notwithstanding any
sale or transfer of the Property or any subdivision thereof to a third party.
9. Notices. Any notice to be given by a party to this Agreement shall be personally delivered,
sent by registered or certified mail, sent by confirmed electronic transmission, or sent by a
nationally recognized overnight courier that issues a receipt to the address set forth for the
other party in this section (or to such other address as may be designated by notice to the
other parties), and shall be deemed given upon the earlier of personal delivery, the date
postmarked, confirmation of electronic transmission, delivery to such courier or the refusal
to accept such service.
If to the EDA: EDA in and for the City of New Hope
Attn: Kirk McDonald
4401 Xylon Avenue North
New Hope, MN 55428
kmcdonald&ci.new-hope.mn.us
3
If to Regal Homes: REGAL HOMES, INC.
Attn: Melvin Moore Brown
6216 Baker Rd, Suite 200
Eden Prairie, MN 55346
10. Governing Law. All matters relating to the interpretation, construction, validity and
enforcement of this Agreement shall be governed by the internal laws of the State of
Minnesota.
11. Cumulative Rights. Each and all of the various rights, power and remedies of the EDA
in this Agreement shall be considered as cumulative with and in addition to any other rights,
powers, or remedies of EDA, and no one of them is exclusive to the others, or is exclusive
to any other rights, powers and remedies allowed by law. The exercise or partial exercise
of any right, power or remedy shall neither constitute the election thereof, nor the waiver
of any other power or remedy.
12. Amendment. This Agreement may be modified or amended only by a written instrument
executed by Regal Homes and the EDA.
IN AGREEMENT, the parties have executed these Restrictive Covenants effective the day and
year first above -written.
ECONOMIC DEVELOPMENT REGAL HOMES, INC.
AUTHORITY IN AND FOR THE
CITY OF NEW HOPE
By: By:
Dated:
0
Kathi Hemken
Its: President
Kirk McDonald
Its: Executive Director
2017
Dated: .2017
2
Melvin Moore Brown
Its: President
Dated: 92017
STATE OF MINNESOTA }ss.
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me this day of
, 20175 by Kathi Hemken and Kirk McDonald, the President and Executive
Director 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 Seal)
Notary Public
STATE OF MINNESOTA } ss.
COUNTY OF
The foregoing instrument was acknowledged before me this day of ,
20175 by Melvin Moore Brown, the President of REGAL HOMES, INC., a Minnesota corporation,
on behalf of said corporation.
(Notary Public Seal)
Notary Public
Drafted By:
JENSEN SONDRALL PERSELLIN & WOODS, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424-8811
P:\Attomey\SAS\l Client Files\2 City of New Hope\99-11403 Purchase of 5400 Yukon Ave. N\Restrictive Covenant - 5400 Yukon Ave. N..docx
5
Exhibit C
Assessment Agreement
See attached.
14
ASSESSMENT AGREEMENT
THIS AGREEMENT dated as of the day of , 20171 by and
between 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 ("EDA") and REGAL
HOMES, LLC, a Minnesota corporation ("Regal Homes").
RECITALS
WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between
EDA and Regal Homes dated effective August , 2017 ("Purchase Agreement") Regal
Homes purchased the real property located at 3751 Louisiana Avenue North in the City of New
Hope from EDA, which property is legally described as Lot 5, Block 3, Wonderland 1 st Addition,
Hennepin County, Minnesota, ("Property") with a closing on ,2017; and
WHEREAS, Regal Homes has committed to constructing a new residential home on the
Property pursuant to the terms of the Purchase Agreement; and
WHEREAS, the EDA and Regal Homes have agreed Regal Homes shall complete the
construction of the home as described in the Purchase Agreement within one (1) year of the date
of closing on the purchase of the Property; and
WHEREAS, the EDA and Regal Homes have further agreed the EDA may levy a
$20,000.00 assessment against the Property prior to Regal Homes sale of the Property with the
completed home if it is not being sold to an owner -occupant. Further, said assessment may be
certified to Hennepin County for collection with real estate taxes payable in a single installment.
AGREEMENT
1. Completion of Project. Regal Homes hereby covenants and agrees with the EDA that the
new home on the Property shall be fully completed on or before , 2018. Fully
completed shall mean the Property shall be improved with a new single-family house.
2. Agreement to Assessment. Regal Homes acknowledges and agrees the EDA may levy a
$20,000.00 assessment against the Property if. (a) the Property is not improved with a
single-family house on or before , 2018; and/or (b) if Regal Homes sells the
Property with the completed home to a non -owner -occupant. Further, Regal Homes agrees
the assessment provided by this paragraph may be certified to Hennepin County as a special
assessment and collected with the real estate taxes against the Property in a single
installment.
3. Waiver by Regal Homes. Regal Homes expressly waives objection to any irregularity
with regard to any assessment levied against the Property per this Assessment Agreement
or any claim that the amount thereof levied against the Property is excessive, together with
all rights to appeal the assessment in the courts.
4. Regal Homes' Successors. This Agreement shall not be terminated by:
a) The voluntary dissolution of Regal Homes or any parent subsidiary or successor of
Regal Homes;
b) Merger whereby Regal Homes (or such parent subsidiary or successor Regal
Homes) is not the surviving or resulting entity; or
C) Any transfer of all or substantially all of the assets of Regal Homes. In the event
of any such merger or consolidation or transfer of assets, the provisions of this
Agreement shall be binding upon the surviving or resulting entity to which such
assets shall be transferred.
5. Notices. Any notice to be given by a party to this Agreement shall be personally delivered,
sent by registered or certified mail, sent by confirmed electronic transmission, or sent by a
nationally recognized overnight courier that issues a receipt to the address set forth for the
other party in this section (or to such other address as may be designated by notice to the
other parties), and shall be deemed given upon the earlier of personal delivery, the date
postmarked, confirmation of electronic transmission, delivery to such courier or the refusal
to accept such service.
If to the EDA: EDA in and for the City of New Hope
Attn: Kirk McDonald
4401 Xylon Avenue North
New Hope, MN 55428-4898
kmcdonald@,ci.new-hope.mn.us
If to Regal Homes: REGAL HOMES, LLC
Attn: Melvin Moore Brown
6216 Baker Rd, Suite 200
Eden Prairie, MN 55346
2
6. Governing Law. All matters relating to the interpretation, construction, validity and
enforcement of this Agreement shall be governed by the internal laws of the State of
Minnesota.
7. Cumulative Rights. Each and all of the various rights, power and remedies of the EDA
in this Agreement shall be considered as cumulative with and in addition to any other rights,
powers, or remedies of the EDA, and no one of them is exclusive to the others, or is
exclusive to any other rights, powers and remedies allowed by law. The exercise or partial
exercise of any right, power or remedy shall neither constitute the election thereof, nor the
waiver of any other power or remedy.
8. Amendment. This Agreement may be modified or amended only by a written instrument
executed by Regal Homes and the EDA.
IN AGREEMENT, the parties have executed this Restrictive Covenant effective the day and year
first above -written.
ECONOMIC DEVELOPMENT REGAL HOMES, LLC
AUTHORITY IN AND FOR THE
CITY OF NEW HOPE
By: By:
_ Melvin Moore Brown
Kathi Hemken Its: President
Its: President
Dated: , 2017
Dated: , 2017
0
Kirk McDonald
Its: Executive Director
Dated: , 2017
STATE OF MINNESOTA }ss.
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me this day of ,
2017, by Kathi Hemken and Kirk McDonald, the President and Executive Director 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.
3
(Notary Public Seal)
Notary Public
STATE OF MINNESOTA } ss.
COUNTY OF
The foregoing instrument was acknowledged before me this day of ,
20175 by Melvin Moore Brown, the President of REGAL HOMES, INC., a Minnesota corporation,
on behalf of said corporation.
(Notary Public Seal)
Notary Public
Drafted By:
JENSEN SONDRALL PERSELLIN & WOODS, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424-8811
P:\Attorney\SAS\l Client Files\2 City of New Hope\99-11403 Purchase of 5400 Yukon Ave. N\Assessment Agreement - 5400 Yukon Ave. N.docx
2
Exll ibft D
Request for Proposal ("RFP") GuideUnes
See attached.
15
City of New Hope
4401 Xylon Ave N I New Hope, MN 55428
Office: 763-531-5114 1 Fax: 763-531-5136
ci.new-hoe.mn.us
The City of New Hope Economic Development Authority (EDA) is requesting proposals from builders to
purchase the vacant lot located at 3751 Louisiana Avenue North, for the construction of a new single family
home. The lot is being offered as part of the City's Scattered Site Housing Program that focuses on the
removal or rehabilitation of distressed properties. The site is the former location of a vacant home that was
razed by the EDA. Enclosed, please find the Proposal Form and Guidelines for making a proposal.
To receive consideration, proposals must be submitted on a completed Proposal Form and the required
attachments and additional information must be included. Incomplete proposals will not be considered.
Proposals are due by 12:00 Noon on July 18th 2017.
If you have questions about the RFP process or the enclosed Guidelines, please contact Aaron Chirpich in the
Community Development Department at the City of New Hope, 763-531-5114 or
achirpich@ci.new-hope.mn.us
Thank you for your interest!
Regards,
Aaron Chirpich
Community Development Specialist
General Notes:
1. Only complete proposals will be considered. The City retains absolute discretion in deciding whether to
accept any particular proposal.
2. Proposals must be submitted by state -licensed builders who have built at least three houses in Minnesota
in the last five years, or have equivalent experience acceptable to the City. The house may be built
speculatively or for a specific buyer.
3. The City is interested in proposals that will generate the highest valued home possible. The new house
must be an owner -occupied, single family home. Owner occupancy restrictions will be documented in the
development agreement and secured with a recorded restrictive covenant. The occupancy requirement
shall apply to the first buyer only and shall last for a period of one year. Full details regarding the legal
language of this requirement are available upon request.
4. No preferred home style has been determined. However, preference will be given to concept plans that
propose to finish the most square footage and those that include high quality exterior materials and
upgraded interior amenities. Copies of previously approved proposals are available upon request.
5. Following proposal approval by the City Council, selected builders will be asked to enter into a purchase
and development agreement. This agreement will address the sale of the lot and secure all applicable
development and performance standards outlined in the proposal guidelines. At the time of this
agreement the builder must submit a $2,000 nonrefundable earnest money deposit. Once the purchase
and development agreement have been completed, final approval by resolution will take place at the next
regularly scheduled City Council meeting.
6. Construction of the new house must be completed within one year of closing on the purchase of the lot.
Specifications:
1. Utilities
a) All utility service lines shall be underground. Utilities may locate necessary facilities such as pedestals
or boxes in the street right-of-way or utility and drainage easements.
b) Any expenses for connection of the house to private utilities shall be the responsibility of the builder.
c) Municipal water is available into the lot, and the location of the service is marked onsite. The EDA
installed a new curb stop and box in conjunction with the demolition of the home.
d) Municipal sanitary sewer is available into the lot, and the location of the service is marked onsite. The
EDA slip -lined the existing service from the termination point on the property all the way to the main
line in conjunction with the demolition of the home.
2. Building Standards and Design Guidelines
a) All site improvements shall comply with the New Hope City Code.
b) The house shall have at least three (3) finished bedrooms and two (2) finished bathrooms.
c) The house shall have an attached garage that will accommodate a minimum of two vehicles. Three stall
garages are preferred.
d) The design should emphasize the front door as the focal point for the front of the house. A large and
usable front porch is desired. Garage door dominance in design should be minimized as much as
possible.
e) The driveway for the new home must be completely new and fully paved from the street to the garage.
The City has left a portion of the old driveway as a construction entrance. The remaining section of
the old driveway must be fully removed.
Specifications:
e) Plans should present a balanced and pleasing distribution of wall and window areas from all views.
Blank walls are not permitted. To the extent that southern exposures are present, house designs are
expected to enhance wintertime natural light and passive solar heating.
f ) No equipment such as air-conditioning cooling structures or condensers that generate noise shall be
located within a side setback, drainage and utility easement.
g) Exterior materials (siding, soffit, doors and windows) shall be low maintenance. The use of brick or
stucco is preferred. Vinyl or other low maintenance siding materials are generally acceptable and can
be made more desirable through the use of shakes, fish scales or other styles to break up the pattern.
3. Landscaping
a) The lot shall be landscaped to be aesthetically pleasing in all seasons. Land forms and plant materials
shall be used to define the site and blend neatly with adjoining property. The lot area remaining after
providing for off-street parking, sidewalks, driveways, buildings, and other requirements shall be
landscaped using ornamental grass, shrubs, trees or other acceptable vegetation or treatment generally
used in landscaping. The use of grass seed or hydro -seed is not acceptable. All grass that is planted
must be sod. Additionally, all lawn areas must be irrigated with underground irrigation systems.
Builder is responsible for the completion of all landscaping items.
b) A minimum of one (1) large -species deciduous shade trees shall be planted in the front yard.
A minimum of two (2) large -species deciduous shade trees shall be planted in the rear yard. Trees
should be a minimum of 2" in diameter. A list of prohibited trees is attached.
4. Setbacks
Front Yard (east)
Rear Yard (west)
Interior Side Yard
Attached Garage
Interior Side Yard
House
25 feet
25 feet
5 feet
10 feet
Approximate maximum home width = 64 feet
r.
�6�P• �g
_ 1
Specifications:
5. Builder Selection Criteria
a) Builder must be licensed in the State of Minnesota as a Residential Building Contractor.
b) Builder shall provide the addresses of three houses they have built in Minnesota within the last five
years, or evidence of qualification acceptable to the EDA.
c) Builder must provide proof of builders risk, comprehensive general liability, and worker's
compensation coverage.
d) Builder must be capable of completing the house within one year of closing on the purchase of the lot.
6. Required Attachments by Builder
a) Site plan showing the layout of the home on the lot. Please include dimensions and setbacks.
b) Floor plans with dimensions. Clearly indicate square footages of each floor.
c) List overall square footage.
d) List total finished square feet.
e) Elevations, must indicate types of exterior materials (color elevations preferred).
f) Narrative description of the interior trim package. Include description of flooring.
g) Estimated sales price of the home.
h) Pictures of similar homes (if available).
7. Attachments Provided by City
Location map
Sample lot layout (with approximate dimensions)
Prohibited tree list
This lot is being offered at a price of $55,000. The EDA does not negotiate on lot price.
This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a
proposal to purchase this lot for $55,000 and build a new single family house in accordance with the RFP
guidelines.
If a builders proposal is accepted by the EDA, builder will be asked to enter into a purchase and
development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is
signed would a binding contract exist between the EDA and the builder.
Company Name: State License Number:
Telephone: E-mail
Address: City/State/Zip:
Signature: Date:
Print Name and Title:
Proposals are due by 12:00 Noon on July 18th 2017
Submit this proposal form and required attachments to:
Aaron Chirpich
City of New Hope I Community Development Specialist
4401 Xylon Ave N l New Hope, MN 55428
Office: 763-531-5114 1 Fax: 763-531-5136
achirpich@chnew-hope.mn.us
Proposals may be submitted by hand delivery, U.S. Mail, Fax or E-mail
Exhibit E
Buyer's Proposed Plans
See attached.
P:\Attomey\SAS\1 Client Files\2 City of New Hope\99-11403 Purchase of 5400 Yukon Ave. N\Purchase and Redevelopment
Agreement 5400 Yukon Ave. N..docx
16
i 4
IThis lot is being offered at a price of $55,000. The EDA does not negotiate on lot price.
This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a
proposal -to purchase this lot for $55,000 and build a new single family house* in accordance with•the RFP
guidermes.
If a builders proposal is accepted' by the EDA, builder wiU be asked to enter into. a purchase and
development agreement an&provide $2,000 earnest money fog the. lbbt. OAIY after sem. an agreement is
-sighed would a binding contract exist between the EDA and the o der
Company Name: .Oai.fiornes Ltt; Mate License .>r umiberjjCB79071
T°eep%ne: 335=877
Address: -6216 BakeT Rd
9ignattire:
Print Name- anef"Fitle: MeWhWore&qwn
E, -Mg .= brnQ�fier2fandigg. m
'City/State/Zip: 'Eden Prairie-MN°55348
are due by 12!00 Noon on July I.S 017
Submit t% -is proposal form and required attachments -to:
Aaron Chirpich
City of New Mope I Community Development Specialist
4401 Xylon Ax --e N 1 New Hope, ?JN 55428
Office: 753-531-5114 1 Fax: 763-531-5136
�chirp�citneu7-Lio,�e�ir r� us
D;ite: 7117)17
Proposals may be sub ed. by hmd.:delivery,.U.S.. _Eax..or E-mail,
Proposal -Specifications
3751 Louisiana Ave., New Hope
Regal Homes
6216 Baker Rd
Suite 200
Eden Prairie MN 55346
Submitted to: 3751 Louisiana Ave
2326 Sqft 2 story, with a 3 car garage
Unfinished basement
Date: July 11, 2017
Specifications and plans to be built.
All work and materials to meet applicable building codes
Structural and Envelope
1. Poured 8' concrete foundation walls
2. Nine foot tall ceilings on the main floor
3. Eight foot ceilings on the bedroom level
4. Watchdog waterproofing system with 2" exterior foundation insulation
5. Drain tile with radon vented and sump pump
6. 2x6 framed exterior walls
7. 2x4 framed interior walls
8. Roof trusses & floor trusses
9. 1/2" OSB exterior wall sheathing
10. 3/a" tongue and groove OSB sub floor
11. Tamko architectural roof shingles
12. Fiberglass insulation in framed exterior house walls and attic
13. Closed cell spray foam rims
14. Foam exterior foundation walls
15. Exterior house wrap
16. Sierra Pacific vinyl windows
17. Sierra Pacific patio door
18. GP Vinyl siding
19. GP Aluminum soffit, fascia
20. LP trim boards on the front per plan
21. 16'x 8' and a 9'x8' Raised panel steel overhead garage door
22. Exterior stone per plan with an address Stone
Floor Coverings
1. Laminate floors in foyer, kitchen, dining room, V2 bath and pantry
2. Vinyl floors in the upper hall bath and master bath
3. Vinyl flooring in laundry room
4. Carpet in the balance of the finished areas and stairs
Plumbing
1. Stainless kitchen sink
2. Bath fixtures to be white
3. Brushed nickel faucets
4. Fiberglass tub shower surrounds in both the upper hall bath
5. Fiberglas tub shower surround in the master bath
6. 50 gallon electric water heater
7. 1 basement floor drain
8. Lower level bath rough -in, in the basement
9. Two exterior water taps
10. Water supply box for the kitchen refrigerator
11. Stub out and install the irrigation system
12. Rough in wet bar adjacent to lower level bath room rough in
Heating
1. 90% + efficient direct vent furnace or equal
2. Central air conditioning
3. Air exchanger
4. Install ducting for dryer venting to the outside
5. Vented bath fan
Electric
1. 100 Amp electric service
2. Smoke detectors, CO2 per code
3. Wire house to code, outlet spacing to code.
4. Two exterior outlets
5. Sealed Lesco Boxes for the exterior electrical
6. Low voltage package allowance
7. 8 recessed cans locations to be selected
Appliances
1. Appliances package allowance includes an upgraded dishwasher with hidden
controls
Cabinets, Countertops, Doors and Trim
1. Birch or maple standard stain cabinets with an allowance
2. Cultured marble vanity tops in the bathrooms with integral bowls
3. Granite kitchen counter tops
4. Stained poplar 1 x4 headers and sills casing
5. Stained 3-3/4" poplar base
6. 3 panel painted interior doors
7. Brushed nickel hinges and hardware
8. Brushed nickel levered door knobs
9. Newel post and rail from main floor up to first landing
Allowances
1. Appliances $ 25500
2. Low Voltage $ 450 Prewire package
3. Light Fixtures $ 1, 5 5 0
Miscellaneous
1. Paint includes up to two wall colors light to medium colors of Sherwin Williams
flat paint, ceilings painted white
2. Knock down textured ceilings
3. Mulch and edging around the house and sod front sides and rear as required by the
city, irrigation and 2 rear yard trees and 2 front yard trees
Options NOT included in the BASE package price
1.
12' x 14' Cedar Deck
$
300
2.
Rough in wet bar lower level
$
475
3.
Master Bath separate tub, ceramic shower
Ceramic bath floor, ceramic tub surround
$
7,300
4.
Tile floor upper hall bath
$
750
5.
Hardwood instead of laminate Flooring
$
29000
6.
Transom Window Dinette
$
600
7.
Belt Drive Garage Door Opener
$
300
8.
Vented hood Fan
$
350
Base Package Price $363,264.00
Regal Homes LLC
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This lot is being offered at a price of $55,000. The EDA does not negotiate on lot price.
This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a
proposal to purchase this lot for $55,000 and build a new single family house in accordance with the RFP
guidelines.
If a builders proposal is accepted by the EDA, builder will be asked to enter into a purchase and
development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is
signed would a binding contract exist between the EDA and the builder.
Company Name:—� State License Number: C?1
Telephone: �� � "' L4 a 57 5 E-mail [ Q dtrso n e mom P -E a
Address: 'P A -VC: OLCity/State/Zip: dAy cp eg, h 5.51'4y
L Al I I Plg 1A I
Signature:_VV Date: � 1 1 7
Print Name and Title: 1,44 peyvrw- pesionev
Proposals are due by 12:00 Noon on July 18th 2017
Submit this proposal form and required attachments to:
Aaron Chirpich
City of New Hope I Community Development Specialist
4401 Xylon Ave N 1 New Hope, MN 55428
Office: 763-531-5114 1 Fax: 763-531-5136
achiEVich@d.new-hope.mn.us
Proposals may be submitted by hand delivery, U.S. Mail, Fax or E-mail
Woodridge
base +
$165,245.00
lot
$55,000.00
Permit
$4,775.00
Lot acquisition/Carrying costs
$2,200.00
gutters
AC
Model Fee
Upgraded Kitchen Faucet
3 recessed lights in kitchen
Wi e Trim Package
Upgraded Handrail
1 additional pendant over island (2 total)
1 ceiling fan
knock down ceilings
2 dead bolts
442 inch uppers
Recycle bins
Prairie Grids
granite allowance
Allowance For wood floors/tile flooring
1400 total lighting allowance
$4100 appliance allowance plus crasher/dryer
landscape allowance
Eyelash/brow upgrades
28 sf canted sq ft
Dbl Rod & Shelf in Master
S' Shower in Master
Upgrade tub on main level bath (Deeper)
Long Transom 6020
Additional Stone on Front of Home
Iron Rails
Additional Sidelite
Hip Roof
963 Post
8' Garage Doors w/inserts
Large Crown in Kitchen
Finished Lower Level
ov- $309,766.00
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This lot is being offered at a price. of $55,000. The EDA does not negotiate on lot price.
This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a
proposal to purchase this lot for $55,000 and build a new single family house in accordance with the RFP
guidelines.
If a builders proposal is accepted by the EDA, builder will be asked to enter into a purchase and
development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is
signed would a binding contract exist between the EDA and the builder.
Company Name: / /Nc i f State License Number.
Telephone: E-mail 4
Address: ILI a *;-- S1111411C City/State/Zip: 1� 4 , ST3 d 3
Signature: Date: 7-/7
-/7
Print Name and Title: /a �� lb
Proposals are due by 12:00 Noon on July 18th 2017
Submit this proposal form and required attachments to:
Aaron Chirpich
City of New Hope I Community Development Specialist
4401 Xylon Ave N I New Hope, MN 55428
Office: 763-531-5114 1 Fax: 763-531-5136
achirpich@ci.new-hope.mn.us
Proposals may be submitted by hand delivery, U.S. Mail, Fax or E-mail
40.1.1"
1428 51h Ave I Anoka, MN 55304
p: 763-205-2037 If: 763-421-5616 1 www.tollberghomes.com
July 17, 2017
Aaron Chirpich
New Hope Community Development Dept.
4401 Xylon Ave N
New Hope, MN 55428
Dear Mr. Chirpich,
Thank you for your recent correspondence regarding scattered site lots in the City of New Hope.
Tollberg Homes, LLC is a local builder out of Anoka that builds single family homes in a variety of communities and price
range. We were recently recognized as a Top 25 Builder by the Builders Association of the Twin Cities. Current MN
communities that we are active in include Lino Lakes, Blaine, Stillwater, Crystal, and Little Canada. Addresses of specific
homes that we've built are included at the end and we can certainly provide access to the inside of any or our model
homes at your convenience. We have the financial strength to purchase the lots and complete the construction. A
commitment letter can be provided upon request.
Tollberg Homes has significant experience building in first ring suburbs and in -fill neighborhoods. We have purchased
lots from EDA's of Crystal, Columbia Heights, Coon Rapids, and Anoka in the past several years. Our clients who bought
these homes have been appreciative of the quality and value delivered by Tollberg Homes. Our warranty also exceeds
industry standard as we perform a 4 week and 1 year walk through with all of our clients after closing to address any
concerns.
TOLLaaG
1428 51h Ave { Anoka, MN 55304
p: 763-205-2037 If: 763-421-5616 1 www.toliberghomes.com
We would anticipate that the Avalon model would be a good fit with the Louisiana Ave neighborhood. The Avalon
model is a 1460 sq ft four level plan with an unfinished basement. Exterior materials would include stone, shakes, and
vinyl siding. Interior finishes would include granite kitchen countertops and laminate wood flooring on the main level.
Entry bathrooms would be vinyl and the bedrooms and hallways would be carpeted. The anticipated sales price would
be $299,900. It would be our intent to construct the homes as quickly as time and weather permit. Our typical
construction time frame is about 100 days. Tollberg Homes hopes to have a long term presence in New Hope that
would be beneficial to all of the parties involved. Please feel free to contact us with any questions.
Very truly yours,
/�/t�er
Nathan Jones
Chief Operating Officer
Tollberg Homes
651-208-0500 cell
Current and Previous EDA lots:
5715 Regent Ave, Crystal
5626 Vera Cruz Ave, Crystal
3122 Douglas Ave, Crystal
1607103 rd Ave, Coon Rapids
2260 Coon Rapids Blvd, Coon Rapids
1038 and 1044 Madison St, Anoka
1045 and 1051 Jefferson St, Anoka
4600, 4606, 4636, and 4648 Polk St, Columbia Heights
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New Home Spec Sheet
Job Address: 3751 Louisiana Ave, New Hope
Legal: [Legal Description]
Buyer Information:
MODEL HOME
[Buyer 2 Name]
[Buyer 1 Phone]
[Buyer 2 Phone]
[Buyer 1 Email]
[Buyer 2 Email]
Buyer Agent Info:
Plan Info:
4 -Level
Est. 1460 sqft
❑Basement Finished
Basement: XLookout ❑Walkout ❑X Full
Garage: ❑X Right ❑ Left
Utilities:
❑X City Water/Sewer ❑Well/Septic
El Rural Water/Septic
By signing below (or by electronic approval on BuilderTrend), Buyer approves and accepts specifications
as written. These specifications supersede finish notes on the house plans UNLESS Tollberg Homes has
specifically added red line notes to the plan. Any change to these specifications is subject to $150
Change Order fee in addition to the cost of the change. A requested change is not guaranteed until a
signed Change Order is on file. Buyer is aware that any item discussed between Buyer and Builder, or
representative of the Builder, that has not been detailed on the approved House plans, Spec Sheet, or
Change Order will not be included in construction. It is the responsibility of the Buyer to check and
confirm that all desired changes have been detailed on the House plans, Spec Sheet, or Change Order.
Buyer: Date:
Buyer: Date:
Exterior Finish:
Windows: ®Vinyl ❑Other [detail]
Color: ®White ❑Tan
®Grids in glass (front only)
Humidifier: El Yes IK No
Front Door: ®Six panel steel, painted El Fiberglass, Craftsman style, stained
Garage Service Door: ❑Yes ®No
Exterior Hardware Color: ®Satin Nickel ❑Other [detail]
Garage Doors: ®Standard Panel ❑Other: [detail]
Insulated with Liner: ❑Yes ®No
®One Opener (double stall) ❑Wireless keypad
Shingles: ®Architectural ❑3 Tab
Gutters: ❑Yes ❑No
Siding: ®Vinyl ❑Fiber Cement []Front Only
Shakes: ®Vinyl ❑Fiber Cement
Soffit/Fascia: ®Aluminum
Columns: ❑Miratec Wrap ®Cedar El Stone Base/Miratec
Stone: ®Front, per plan
Deck: ❑Yes ®No
Notes:
[Notes]
[Notes]
Fireplace: ❑Yes ®No
❑SL550 ❑SL750 ❑End Wall ❑Corner ❑Interior []Dog House ❑Flush hearth ❑Raised hearth
❑Blower ❑Remote El Ceramic tile face ❑Stone to mantel []Stone to ceiling ❑Wood mantle
Notes: [Notes]
HVAC:
Gas Lines: ❑Dryer ❑Range ❑Cooktop ®Furnace ❑Fireplace ❑Garage Heater ❑Water Heater
Venting: ®Dryer ® Bath fans ❑ Range Hood ❑ Micro
Air Exchanger: ®Yes ❑ No
Humidifier: El Yes IK No
Gas Service: ® Natural Gas ❑ LP
Notes: [Notes]
Plumbing:
Fixtures: ®Standard Package ❑Allowance [detail] Master Shower: ®Fiberglass El Ceramic Tile
Water Heater: ®50 Gal Electric ❑50 Gal Powervent Garage Floor Drain: ❑ Yes ® No
®Garbage Disposal ®Ice Maker line ®Sprinkler line ❑Wet Bar ®LaundryTub ®Sump Pump ®Sump Basket
Notes: [Notes]
Electrical:
Service: ®150
Plate Covers: ®White ❑Almond
Recessed Lights: 4
Lighting: ®Standard Package
®Door Chime ❑Whirlpool Tub ®Central Air
®Sump Pump ®Air Exchanger ®Hot Water Heater ❑Well
0 I floor heat ❑Humidifier ❑Zone controls
®Microwave circuit ®Range ❑Range Hood ❑Cooktop
®Garbage Disposal ®Dishwasher ®Refrigerator ❑Wall Oven ®Dryer ❑Ceiling Fan ([ # ]) ® Bath Fan (3)
®Phone (2) ®Cable (2 )
Notes: [Notes]
Drywall/Insulation:
Interior: ®Square Corners ❑Rounded Corners
Garage: ❑Sheetrock firewall only ❑Sheetrock complete ®Fire tape only ❑Finished (tape/paint)
❑Walls insulated ❑Ceiling insulated
Notes: [Notes]
Interior Finish:
Trim Type: ®White MDF NPrefinished Poplar
Casing Style: N2-1/4" Princeton ❑3-1/4" Princeton
❑Other: [details]
Base Style: 02-5/8" Princeton ❑4-1/4" Princeton
Rail System: ®Poplar ®6010 Handrail NSkirtboard
NCap Board (for half wall)
❑Square Poplar Baluster ❑Matte Black Aluminum Baluster ❑Square Poplar Newel El Poplar Box Newel
Interior Doors: [9 Hollow core, White ❑Other: [details]
N3 panel, flat N6 panel, raised ❑Other: [details]
Hardware: ❑Satin Nickel El Other [details]
Shelving: NWhite wire ❑White melamine w/ wood rod
Cabinets: ❑Poplar ❑Knotty Alder ❑Other Koch
0Flat panel NRaisedpanel
Kitchen Countertop: Ell -aminate ❑Granite ❑Standard Backsplash (to match) NCeramicTile Backsplash
Bath Countertop: NWhite Marble 01 -aminate ❑Granite Laundry Countertop: ❑Laminate ❑Granite
Paint: ❑Standard Flat ❑ Eggshell/Satin (1) Colors
Mirrors: N40" Height X Vanity Width
Carpet: NTollberg Standard ❑Allowance ([ $ ])
❑Bedrooms ❑Living Room ❑Hallway ❑Study ❑Stairs
Ceramic Tile: ❑Tollberg Standard ❑Allowance ([ $ ])
❑Foyer ❑MST Bath ❑Other Baths ❑Mud ❑Laundry
Vinyl: NTollberg Standard ❑Allowance ([ $ ])
❑Kitchen ❑Dining ❑Foyer ❑Baths ❑Laundry ❑Mud
Wood: ❑Laminate ❑Hardwood
NTollberg Standard ❑Allowance ([ $ ])
❑Kitchen ❑Dining Room ❑Living Room ❑Mud ❑Foyer
Notes: [Notes]
[Notes]
[Notes]
Appliances:
❑Standard Package ❑Allowance: [ $ ]
Notes: Package C
Site Finish:
Driveway: ❑Concrete ❑Asphalt Landscape: ❑Machine Grade ❑Allowance: [ $ ]
City Sidewalks: ❑Yes N No
Notes: [Notes]
[Notes]
[Notes]
[Notes]
[Notes]
[Notes]
[Notes]
[Notes]
� a /d
Request for Action
May 22, 2017
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Aaron Chirpich, CD Specialist
Agenda Section
EDA
Item Number
4
Agenda Title
Resolution approving contract with J & J Contracting, LLC for hazardous material abatement, and debris
removal at 3751 Louisiana Avenue North (project 993)
Requested Action
Staff requests approval of a resolution awarding a contract for the abatement of hazardous materials and
bulk debris removal at 3751 Louisiana Avenue North, to the low and responsible bidder, J & J
Contracting, LLC in the amount of $5,835. This contract was previously reviewed, and authorized by the
Council at the May 15 Work Session. Approval of the attached resolution will formally permit the
expenditure of funds for the project.
Policy/Past Practice
When public bidding is required as part of the Scattered Site Housing Program, it is practice of staff to
present contracts to the EDA for consideration.
Background
The city has just acquired the single family -home located at 3751 Louisiana Ave, as part of the Scattered Site
Housing Program. The Council has directed staff to take the necessary steps in preparing the home for
demolition in order to facilitate the development of a new single-family home. Recently, a demolition survey
was completed at the home that identified asbestos, miscellaneous hazardous materials and bulk household
debris. Before the home can be torn down, these items must be removed. Requests for hazardous material
abatement and debris removal quotes were sent to three contractors. The bid results are as follows:
• J & J Contracting, LLC $5,835
• Robinson Environmental, Inc. $6,500
• Aztec Asbestos Removal, LLC $8,140
Experience with Recommended Contractor
The city has not worked with J & J Contracting within the scattered site housing program. J & J Contracting
was recommended to staff by Nitti Rolloff Services, Inc. Nitti Rolloff has recently completed three scattered
site demolitions for the city and become a trusted partner for demolition related work. Therefore, staff
considers their endorsement of J & J Contracting as credible.
Funding
EDA funds will be used to pay for this project on the front end. The city will be reimbursed by Hennepin
County with Community Development Block Grant funds for all costs associated with the contract.
Attachments
• Resolution
• Bids Received
• Demolition Survey
I: \ RFA \ COMM DEV \ Development \ Q-3751 Louisiana Selection of Debris and Asbestos Removal Contractor Project 993.docx
EDA RESOLUTION NO. 17-7
RESOLUTION APPROVING CONTRACT WITH J & J CONTRACTING, LLC FOR
HAZARDOUS MATERIAL ABATEMENT, AND DEBRIS REMOVAL
AT 3751 LOUISIANA AVENUE NORTH
(IMPROVEMENT PROJECT NO. 993)
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 City of New Hope
("EDA") acquired certain real property located at 3751 Louisiana 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 including abatement of all
hazardous materials and debris removal ("Work") to be followed by the demolition of the
buildings on the Property and site grading of the Property; and
WHEREAS, J & J Contracting, LLC submitted a proposal that meets all of the project
specifications, and is the low bid; and
WHEREAS, it is in the best interests of the EDA to enter into a contract with J & J
Contracting, LLC for the purpose of performing the Work; and
WHEREAS, City staff is hereby seeking approval from the EDA of the selection of J &
J Contracting, LLC 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 J & J Contracting, LLC as the Contractor to complete the
abatement of all hazardous materials, and debris removal pursuant to the project
specifications is approved, it being in the best interest of the City to prepare the
Property for redevelopment in accordance with the City's scattered site housing
program and policy.
3. That the payment of $5,835 to J & J Contracting, LLC to perform the Work is
hereby approved.
4. The President, Executive Director, and New Hope City staff are authorized and
directed to sign all appropriate documents, and to take whatever additional actions
are necessary or desirable, to complete the abatement of hazardous materials and
debris removal located at the Property in accordance with the contract to be
prepared by the City Attorney.
Dated the 22nd day of May, 2017.
Attest: \
Kirk N►c,DonaJd, Executive Director
Kathi H en, P esi ent
,W J & J Contracting, LLC -MN=
573 Shoreview Park Road
Shoreview M o'
N 55126
}{ Phone 651-379-2791 Fax 651-287-2373
PROPOSAL
Proposal Submitted To: Project:
City of New Hope City of New Hope House & Garage
Aaron Chirpich 3751 Louisiana Ave North
4401 Xylon Ave N New Hope, MN.
New Hope, MN. 55428 Asbestos, Haz Mat & MSW
WE PROPOSE to remove and recycle/dispose of fluorescent lamps, ballasts, mercury switches, smoke
detectors, electronics, fire extinguishers, MSW from garage and house for the lump sum of:
Universal Waste and Freon
MSW Removal and Disposal
Asbestos Abatement (By Envirobate)
Board up windows
Total: ................ $500.00
Total: ................ $3,300.00
Total: ................. $935.00
Total: ................. $15100.00
Grand Total........ $59835.00
Includes: Labor, Supplies, Recycling/Disposal, Transportation, and Documentation
* Labor is non Prevailing Wage and Non Union*
Note: Work to be done by 40 hour haz mat certified personnel.
Signature:
Date: 5/8/2017
Title:
J & J Contracting, LLC -MN
573 Shoreview Park Road
Shoreview, MN 55126
ACCEPTANCE OF PROPOSAL - The above specifications and conditions are satisfactory and hereby
accepted. J & J Coracting is aut orized to do the work specified above.
• • • • r • .
r �/ _ D
Signature: Date: a- /
Title: ,k
Chirpich Aaron
From:
Usertim695@aol.com
Sent:
Tuesday, May 09, 2017 6:43 AM
To:
Chirpich Aaron
Subject:
3751 Louisiana Ave N.
Robinson EnvironmentalInc
4716671hAve N. Brooklyn Center
Phone: (763)566-4242 Fax:566-4681
Date: 05-09-17
Proposal for: City of New Hope
ATTN: Aaron
Robinson Environmental Inc. will perform hazardous waste removal at 3751 Louisiana Ave. New Hope, MN.
Robinson Environmental will furnish all labor, materials equipment, disposal and Insurance for the project
Scope of work: Hazardous Waste removal, all household & trash, asbestos from Angstrom survey.
PRICE: 6,500.00
Tim Robinson
Aztec Asbestos Removal LLC
3633 2" Ave S.
Minneapolis MN 55409
aztecasbestos@vahoo.com
www.aztecasbestos.com
612-408-5595
Name: City of New Hope / Aaron Chirpich
Address: 3751 Lousiana Ave N.
New Hope, MN 55427.
Phone: 763.531.5114
Email: Achirpich@ci.new-hope.mn.us
5/8/17
We at Aztec Asbestos Removal are pleased to furnish you with this proposal for your upcoming asbestos
related project.
My price is $ 8,140.00 for the removal of the following asbestos related material at the above listed
address.
• 15 square ft. of 9x9 asbestos tile & mastic in front entrance landing on main level. $ 750.00
® 14 exterior windows with asbestos containing glazing compound throughout main level.
$1,400.00
® MERCURY
1 Fluor light fixture $ 30.00
2 fluorescent bulbs $ 30.00
1 thermostat $ 20.00
0 APPLIANCE
1 water heater $ 100.00
1 fridge $ 100.00
1 microwave $ 50.00
1 oven $ 100.00
1 furnace $ 150.00
1 dishwasher $ 70.00
® CHEMICALS
20 gals M isc & 40.00
® PCB'S
2 ballasts $ 30.00
® MISC. MATERIALS
6 smoke/Co2 det. $ 60.00
1 N $ 100.00
1 washer/dryer $ 60.00
3 lawn mowers $ 300.00
1 snow blower $ 200.00
1 auto battery $ 50.00
® HOUSEHOLD ITEMS
: Removal of all household items & miscellaneous debris inside the house and detached garage.
$ 4,500.00
All prices include permit (if necessary), all labor, materials, disposal and all debris and third party
analysis of air clearance samples. Payment is due when work is completed.
If you have any questions or concerns, please do not hesitate to call us back thank you for your time.
This price is valid for (6) months from the date listed above. Clean the work area before the start date or cleaning will be performed at the rate
of $60/hour.
Contractor/Owner Signature Date
A
gstrom
nalytical
Inc.
Aaron Chirpich
City of New Hope
4401 Xylon Ave N
New Hope, MN 55428
April 27, 2017
3751 Louisiana Ave
New Hope
Dear Aaron:
E-IkO 14 r"®
V
5001 Cedar Lake Rd.
St. Louis Park, MN 55416
952-252-0405 office
952-252-0407 fax
Kevin Hagen #2652, a representative of Angstrom Analytical, Inc., visited the above referenced
property on April 27, 2017 for the purpose of conducting an asbestos demolition inspection. We are
prepared to state that there are category I and category II non -friable asbestos containing building
materials contained in or on the fabric of the structure.
The following materials tested positive for the presence of asbestos:
Floor Tile & Mastic Window glazing
The non -friable materials are:
Category I:
1. Approximately 10-15 square feet of asbestos containing 9x9 floor tile and mastic in the front
entrance.
Category II:
5. Approximately 12-14 windows with asbestos containing glazing compound throughout.
No samples other than from the fabric of the building that is planned for demolition were taken or analyzed
and this report only relates only to 3751 Louisiana Ave. Twenty -Seven samples of suspect building
materials were collected and analyzed in our laboratory by Polarized Light Microscopy.
Please see attached notes.
During the course of the survey the following hazardous materials were noted:
Mercury
1 fluor.lite fixture
2 fluorescent bulbs
1 thermostat
Appliances
1 water heater
1 fridge
1 microwave
1 oven
1 furnace
1 dishwasher
f hamirnic
15-20 gals misc
PCB's
2 ballasts
Misc. Materials
4-6 smoke/Co2 det.
1 TV
1 washer/dryer
3 lawn mowers
1 snow blower
1 auto batt.
CFC's
2 A/C units
QMM %A/recta
50-60 cu yds of trash
All friable and category II non -friable materials need to be removed, per applicable regulations, prior to
and demolition efforts. Category I non -friable materials are allowed to be left in place for the demolition.
However, the landfill must be made aware that the demolition debris will contain (minimal amounts of)
category I non -friable asbestos containing material and is subject to the MPCA's rules and regulations
pertinent to the demolition efforts (notifications, etc.). This survey should not be interpreted as a bidding
document or as an asbestos project design. It is incumbent upon the contractor to verify quantities.
Quantification of materials identified in this inspection report are approximations and based on observed
quantities. Additional amounts of material may be present under floor, above ceilings and inside wall
cavities and not fully quantified. For example, thermal system insulation indentified in a basement may
also exist inside wall cavities.
If you have any questions, please call us at the number above.
Sincerely,
evi/
Angstrom Analyt Inc.
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A
gstrom
nalytical
inc.
Analysis of Bulk Samples for Asbestos Using Polarized Light Microscopy (PLM)
Aaron Chirpich
City of New Hope
4401 Xylon Ave N
New Hope, MN 55428
Re: 3751 Louisiana Ave
Number of Samples: 27
5001 Cedar Lake Rd.
St. Louis Park, MN 55416
952-252-0405 office
952-252-0407 fax
Methods and Definitions
The submitted samples were analyzed using the EPA Interim Method #600/M4-82-020
(polarized light microscopy with dispersion staining). The method defines an asbestos containing material
as one that contains grater than 1% asbestos by weight and asbestos is defined as the fibrous forms of serpentine
and certain amphiboles. While the fibrous and non-fibrous forms of minerals are discernible microscopically
in hand specimens, the distinction between them is not clear on a microscopic level, especially after processing or
manufacturing. Fibrous amphiboles are generally those whose mean aspect ratios (length over width)
under the microscope are approximately >10; non-fibrous amphiboles are generally those whose mean
aspect ratios are approximately <6. During analysis, morphology and an estimate of mean aspect ratio
are used to assign a given mineral fiber population to fibrous and non-fibrous categories.
That non-fibrous amphiboles are not reported as asbestos is consistent with mineralogical definitions,
but does not imply that non-fibrous amphiboles are not hazardous. Airborne concentrations of them
may be regulated by OSHA under certain circumstances. The type of dispersion staining
used is generally phase contrast, although central stop dispersion staining may also be used.
Percentage Reporting
The percentage of each fiber type present was determined using volume percents
estimated from stereoscopic examination, projected area percents from mounted slide
examination and percents from comparison to weight percent standards. Such estimations are suitable
for most samples, but do have large error ranges. Errors are estimated to be 100 relative percent uncertainty
for percentage estimates under 10% ranging down to as little as 10 relative percent uncertainty for
percentage estimates greater than 50%. Friable samples which have been estimated by the above methods to
contain less than 10% asbestos can be point -counted, according to the EPA Interim Methods, as required by NESHAPS.
In low percentage samples, point counting may produce false negatives or positives, due to the small number
of points counted. For samples consisting of more than one apparent type of material or layer, the percentage
of each fiber type in each type of material of layer is determined and reported separately; an overall average for the
sample of each fiber type is then calculated. The reported friability of a sample refers to that friability observed in the
condition analyzed (broken, crushed, etc.), and is not to be substituted for an on-site assessment of friability.
Each Angstrom Analytical lab report relates only to the sample tested and may not, due to the sampling process be
representative of�the material sampled.
April 27, 2017
Kevih Hagen,I An, Analytical, Inc.
Full Service Laboratory and on-site Industrial Hygiene Services for the Hazardous Materials Abatement Industry
Agenda Title
Request for Action
May 8, 2017
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Aaron Chirpich, CD Specialist
Agenda Section
EDA
Item Number
4
Resolution approving contract with Nitti Rolloff Services, Inc. for demolition of site improvements, utility
work, tree removal, and site grading of 3751 Louisiana Avenue North (improvement project no. 993).
Requested Action
Staff requests approval of a resolution awarding a contract for the demolition of all site improvements,
utility work, tree removal and site grading for the property located at 3751 Louisiana Avenue North, to
the low and responsible bidder, Nitti Rolloff Services, Inc. in the amount of $21,457.
Policy/Past Practice
When public bidding is required as part of the Scattered Site Housing Program, it is practice of staff to
present contracts to the EDA for consideration.
Background
The EDA has recently acquired the single-family home located at 3751 Louisiana 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 the creation of a new buildable lot. This contract award includes the
demolition of all site improvements, replacement of the water service valve, lining of the sanitary sewer
service, tree removal, and limited site grading. Requests for quotes were sent to four contractors. Staff
received two bids and the results are as follows:
• Leadens Excavating, Inc. $23,850
• Nitti Rolloff Services, Inc. $21,457
Funding
EDA funds will be used to pay for this project on the front end. Following the sale of the vacant lot, the EDA
will be reimbursed by Hennepin County with Community Development Block Grant funds.
Experience with Recommended Contractor
The EDA has worked with the recommended contractor on three previous scattered site housing projects.
Nitti Rolloff Services, Inc. was the selected contractor for demolition and site grading work at 9121 62nd
Avenue North, 4415 Nevada Avenue North and 5400 Yukon Avenue North. Staff had a good experience
working the contractor and has no concerns with hiring them for this project.
Attachments
• Resolution
• Bids Received
• RFQ and Bid Specifications
I:\RFA\COMM DEV\ Development\ Q & R Award Demolition Contract for 3751 Louisiana Avenue Improvement Project 993 5-8-17.docx
EDA RESOLUTION NO. 17-06
RESOLUTION APPROVING CONTRACT WITH NITTI ROLLOFF SERVICES, INC.
FOR DEMOLITION OF SITE IMPROVEMENTS,
UTILITY WORK, TREE REMOVAL
AND SITE GRADING OF 3751 LOUISIANA AVENUE NORTH
(IMPROVEMENT PROJECT NO. 993)
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") acquired that certain real property located at 3751 Louisiana 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, utility work, tree removal and site grading of the
Property; and
WHEREAS, Nitti Rolloff Services, Inc submitted a proposal for demolition of site
improvements, utility work, tree removal and site grading ("Work") that meets all of the Project
Specifications and is the low bid; and
WHEREAS, it is in the best interests of the EDA to enter into a contract with Nitti
Rolloff Services, Inc. for the purpose of performing the Work; and
WHEREAS, City staff is hereby seeking approval from the EDA of the selection of Nitti
Rolloff Services, 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 Nitti Rolloff Services, Inc. as the Contractor to perform the
demolition of all building and site improvements located at the Property, utility
work, 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 $21,457 to Nitti Rolloff Services, 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, utility work, tree removal,
well sealing and the re -grading of the Property in accordance with the contract to
be prepared by the City Attorney.
Dated the 8th day of May 2017.
Attest: N\ k-
Kirk McDonald, Executive Director
. - I - - i
Kathi He en, re ' t
Property Owner: City of New Hope
Property Address: 3751 Louisiana Avenue North P.I.D. (17-118-21-34-0051)
For a price of $ 07 `` the contractor named below proposes to fully complete the work
in accordance with the attached specifications for demolition, site grading, tree removal and utility
work at 3751 Louisiana Avenue North, no later than June 9th, 2017.
Name of Contractor: - 6 0 � t _Q �' -s -`'' C
License Number:
Address: 1• C I o u d Or, lMA _5- Y LI ({q
Telephone: 76, 3 — cP30'p- - /U 1 y E-mail Address: da ne, PrI�-' � �� S. C&&n
Contractor Signature: Date:
Tale.
t -P. .�'
Property Owner: City of New Hope
Property Address: 3751 Louisiana Avenue North P.T.D. (17-118-21-34-0051)
For a price of $' , the contractor named below proposes to fully complete the work
in accordance with the attached specifications for demolition, site grading, tree removal and utility
work at 3751 Louisiana Avenue North, no later than June 9th, 2017.
Name of Contractor: V
License Number: M V) �3 D C.1
Address: ` 0 �a --� `- a �� 11,
a- \\-
Telephone:
L
Telephone:E-mail Address:
Contractor Signature: Date:
Title:
From: City of New Hope
Subject: Request for quotes for demolition, site grading, utility work and tree removal at 3751 Louisiana
Avenue North.
Overview:
The City of New Hope is the owner of the property addressed as 3751 Louisiana Avenue North,
(P.I.D. # 17-118-21-34-0051 ). The City is requesting quotes for demolition of all building and site
improvements at this location followed by re -grading of the primary excavation area, tree removal, and
installation of utility improvements. If you are interested in submitting a quote for this project, please
review the enclosed specifications and inspect the site. To gain entry into the home, use the lock box on
the back door, code 4401. Please call Aaron Chirpich in the Community Development Department with
any questions, 763-531-5114.
Proposals must be completed on the enclosed bid form and submitted by 1:00 p.m. on May 2nd, 2017.
Proposals may be submitted by U.S. Mail, e-mail or in person; please note the enclosed bid form must
be used. City staff will review the submitted proposals and forward them to the City Council. City staff
expect the Council to select a demolition contractor at their May 8th meeting. The selected contractor
would be required to complete the work in accordance with the attached specifications no later than
Tune 9th 2017.
Submit proposals to the following: Attn: Aaron Chirpich
City of New Hope Community Development Department
4401 Xylon Ave, North
New Hope MN, 55428
achirpich@ci.new-hope.mn.us
Property Owner: City of New Hope
Property Address: 3751 Louisiana Avenue North P.I.D. (17-118-21-34-0051)
For a price of $ , the contractor named below proposes to fully complete the work
in accordance with the attached specifications for demolition, site grading, tree removal and utility
work at 3751 Louisiana Avenue North, no later than June 9th, 2017.
Name of Contractor:
License Number:
Address:
Telephone:
E-mail Address:
Contractor Signature:
Title:
Date:
A. Scope of Work
I. General
a. Contractor shall furnish all labor, materials and equipment, and shall perform all service
and work required to remove the buildings, structures and improvements from the site, and
post demolition grading of the site, in strict accordance with these specifications and in
accordance with all applicable ordinances and laws pertaining to removal of
buildings, structures, grading and erosion control. Following demolition, contractor is to
install silt fencing around the entire perimeter of the site
b. Contractor shall thoroughly review these specifications and examine the site to evaluate
existing and proposed conditions prior to making a quote. Failure to do so shall in no way
relieve contractor from performing the work as required or be grounds for a claim for extra
payment.
2. Demolition and Disposal of Buildings and Site Improvements
a. All buildings and site improvements on the site shall be removed and properly disposed.
Demolition to include, but not limited to stairs, ramps, floor slabs, equipment bases,
driveways, aprons, foundation walls and footings, and other structure components,
appurtenances and contents associated with each structure, unless noted otherwise. Include
removal of all out -buildings and landscaping timbers.
b. All demolition materials, substrates, debris, waste, or other materials shall be collected,
stored, handled, managed, and disposed in accordance with currently accepted practices at
an approved, licensed, or permitted facility in accordance with applicable federal, state, and
local ordinances, rules, and regulations.
3. Backfill, Compaction and Grading
a. No demolition material shall be left in, or placed in any excavation. All excavations unless
otherwise noted, shall be back filled with clean imported granular material. Imported
material shall be placed in 1 foot lifts and compacted to no less than 95% standard proctor
density. Contactor shall provide the City with third party sampling, analysis and reports
to demonstrate that 95% compaction has been achieved.
b. The finished grade shall be determined by matching the existing average grade of the
excavation areas prior to demolition. The final grade shall maintain pre demolition
drainage patterns. No imported topsoil is required.
c. Upon completion of the finished grade, contractor shall immediately hydroseed all
disturbed areas of the site.
4. Tree and Vegetation Removal
a. City staff have marked all trees (1) for removal with green paint. The stump shall be pulled
from the ground and hauled away. Stump pits shall be back-filled. Contractor is to include
removal of the marked tree in the demolition bid.
5. Abandonment of Wells
a. The city does not know of any wells on the property. Discovery of any wells shall require
contractor to halt the demolition work until well sealing can be completed. Contractor is
not entitled to additional compensation for any delays resulting from the necessity to halt
demolition work for such well sealing, except that the completion deadline shall be
extended in proportion to the delay.
6. Utilities
a. Contractor shall be responsible for calling Gopher State One Call for the location of any
underground utilities prior to commencement of demolition and site grading work.
b. The city has ordered the disconnection of electricity (Excel Energy) and natural gas
(Centerpoint Energy) services for the property. Contractor shall field verify disconnections
prior to demolition. Other private communication utilities such as telephone and cable may
still be connected; if so, contractor shall roll them back and secure them at the pole prior to
demolition.
c. Contractor is to coordinate the shut off of water with Public Works to ensure that the water
is off before termination of the water service. Contractor is to remove the water line all the
way to the curb stop. Contractor is to install new curb stop and box asyart of the water
disconnection. Document and mark on-site, the location of the service termination.
Inspection by the City will be required prior to backfilling of the trench.
d. Contractor is to coordinate the termination of the private sewer line with Public Works. The
sewer line should be removed to within 3 feet of the property line and the remaining
service stub shall be lined with CIPP lining all the way to the main. Once lined, cap the
end in preparation of connection to the new home. Document and mark on-site, the location
of the service termination. Inspection by the City will be required prior to backfilling of the
trench.
7. Asbestos, Hazardous Materials and Household Goods
a. The City has contracted with Angstrom Analytical for the completion of a demolition
survey for the property. All asbestos, hazardous materials and household goods identified
by Angstrom, will be removed from the property by a licensed abatement contractor
hired by the cit.
Discovery of any additional apparent asbestos containing or other hazardous materials by
the demolition contractor during demolition shall require contractor to halt the demolition
work until testing and abatement (if applicable) is completed at the City's expense.
Contractor is not entitled to additional compensation for any delays resulting from the
necessity to halt demolition work for such testing and abatement, except that the
completion deadline shall be extended to accommodate the delay. Do not include asbestos,
hazardous materials and household goods removal in your bid.
8. Permits and Inspections
a. Contractor will complete and submit the City of New Hope demolition permit application.
Permit fees for the demolition permit will be waived, however the State surcharge will still
be collected as the City can not waive that portion. Contractor shall have the work
inspected prior to backfilling the primary excavation. The private water and sewer service
terminations will also be inspected by City Public Works staff. A separate water and sewer
disconnection permit must be secured from the City. The same fees will be waived for this
permit.
b. If any permits from other governmental agencies are required, contractor shall, at
contractor's own expense, secure such permits, pay any fees and complete any inspections
required by same, and provide a copy of the permit to the City.
c. Contractor shall submit "Notification of Intent to Perform a Demolition" Form to the
MPCA.
r
9. Miscellaneous Provisions, and Notices
a. Contractor shall erect and maintain all necessary barricades and warnings to adequately
safeguard workers, adjacent property, and the public.
b. The demolition and clearing of the site shall be carried out in such a manner to preclude
damage to adjacent property or public right-of-way.
c. Contractor is to provide dust control durin& demolition by watering the home. Water is
available at no cost from the City by accessing adjacent hydrants. Please notify New Hope
Public Works one week in advance to coordinate hydrant connection.
d. Submission of a proposal will constitute an incontrovertible representation by contractor
that contractor has complied with every requirement of these specifications and
attachments thereto; that without exception the proposal is premised upon performing and
furnishing the work including but not limited to the specific means, methods, techniques,
sequences, procedures or precautions expressly required by these specifications and
attachments thereto; that contractor has received from City satisfactory written resolution
of any conflicts, errors, ambiguities, and discrepancies; and that these specifications and
attachments thereto are generally sufficient to indicate and convey understanding of the
terms and conditions for performing and furnishing the work.
Request for Action
March 13, 2017
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Aaron Chirpich, CD Specialist
Agenda Section
Development &
Planning
Item Number
8.5
Agenda Title
Resolution authorizing the acquisition of 3751 Louisiana Avenue North by the city through redemption as a
junior creditor (improvement project No. 993).
Requested Action
Staff requests the Council authorize the acquisition of the vacant and distressed property located at 3751
Louisiana Avenue North by redemption as a junior creditor. The acquisition cost is estimated at $12,300 plus
legal fees associated with processing the transaction.
Policy/Past Practice
In the past, the city has successfully acquired distressed properties as part of the city's scattered site housing
program.
Background
3751 Louisiana Avenue North has been on the city's radar since November of 2014, when New Hope police
officers completed a welfare check at the property. Following the welfare check, the home was deemed
uninhabitable by the city's building official and subsequently left vacant. The inhabitants living in the home
at the time of the welfare check were the adult disabled children of the former owner that had passed away in
2004. Following the visit by New Hope police, the children were moved into supervised care and the house
fell into limbo. Staff was able to track down a representative for the family and expressed the city's interest in
purchasing the home as part of the scattered site housing program. The representative indicated that the
home was encumbered by a large lien that was placed on the property by the MN Department of Health and
Human Services (DHHS). The lien was placed on the property because of medical assistance that was
received by the former owner. Once the lien was discovered, the family lost interest in doing anything with
the home, as there was insufficient equity in the property to pay off the lien.
This property is also unique because the city holds two mortgages on the home that are part of the owner
occupied rehabilitation program that is administered by Hennepin County. When Hennepin County makes a
loan in New Hope that is part of the CDBG program, the mortgage is recorded in favor of the city without the
city having to front any money. After several months of getting nowhere in working with the family and
DHHS, staff began to explore the possibility of foreclosing on one of the city's mortgages as a way to expedite
the transfer of the property. Foreclosure of the city's mortgage would allow the city to bypass the DHHS lien,
as the city's loans were senior to all other debt on the property. Following a conversation with the Council at
the October 17, 2016 work session meeting, it was decided that foreclosure was the preferred course of action.
Therefore, the city attorney completed the necessary steps in foreclosing on one of the city's mortgages.
Unfortunately, at the Sheriff's sale for the city's lien, an investor purchased the certificate in an attempt to
acquire the property. As a result, the city received payment for the lien in the amount of $12,300. Despite the
certificate being purchased by an investor, the city still has an interest in the property in the form of the other
mortgage. Therefore, the city can use its second lien to redeem the property from the investor as a junior
I:\RFA\COMM DEV\ Development\ Q &R-3751 Louisiana Acquisition 3-13-17.docx
Request for Action, Page 2
creditor. In practice, this will require the city to pay the investor back the money that he recently paid the
city, plus any applicable legal fees as part of the transaction. In an effort to expedite the redemption process,
the city attorney has filed a motion with Hennepin County Courts to reduce the redemption period to five
weeks. The hearing for this motion is scheduled for March 16th. If the request for a shortened redemption
period is granted, the city could redeem the property by the end of April. Because the mortgages are in the
name of the city, the city has to be the redeeming entity. The city will transfer the title to the EDA once the
property is redeemed.
Funding
Funding for the project will come from EDA resources. The city has been paid $12,300 by the investor that
bought out the city's first loan. This money will be used to pay the investor back upon redemption. However,
any additional legal fees that are due at the time of redemption will be paid with EDA reserves. Following
acquisition of the home, EDA funds will be used for all demolition -related costs. The EDA will be reimbursed
for all costs associated with this transaction upon sale of the vacant lot. There will be sufficient proceeds to
cover all costs. Therefore, the use of CDBG grant funding is not necessary.
Recommendation
Staff is seeking approval of the acquisition of 3751 Louisiana Avenue. Staff recommends the City Council
approve the attached resolution prepared by the City Attorney that will authorize the acquisition of the
property and subsequent transfer of title to the EDA.
Attachments
• Resolution
• Budget
City of New Hope Single -Family Acquisition and Demolition-- Scattered Site Housing Program
Total Project Cost and Total Funding Sources
USES
Total 55,000
C*OUII MI
Amount
EDA 42,700
Proceeds from Sheriffs Sale 12,300
Total 55,000
Sales Price "vacant lot" 55,000
3751 Louisiana Avenue
New Hope MN, 55428
Amount
Acquisition
12,300
Demolition and Clean Up
20,000
Real Estate Taxes
1,100
Closing Costs (purchase)
Legal (purchase)
7,000
Asbestos Abatement
5,500
Utility Bills
Tree Removal
3,500
Demo Survey
600
Contingency
Closing Costs for Sale of Lot (legal)
2,000
Sewer and Water Repair
3,000
Total 55,000
C*OUII MI
Amount
EDA 42,700
Proceeds from Sheriffs Sale 12,300
Total 55,000
Sales Price "vacant lot" 55,000
3751 Louisiana Avenue
New Hope MN, 55428
RESOLUTION NO. 17 -
AMENDED RESOLUTION AUTHORIZING THE ACQUISITION OF 3751 LOUISIANA
AVENUE NORTH BY THE CITY THROUGH REDEMPTION AS A JUNIOR
CREDITOR
(IMPROVEMENT PROJECT NO. 993)
BE IT RESOLVED by the City Council of the City of New Hope, County of Hennepin,
State of Minnesota, 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, functionally obsolete single family homes for potential purchase by the
EDA as part of the City's scattered site housing program;
WHEREAS, New Hope City staff have identified the opportunity to acquire certain real
property located at 3751 Louisiana Avenue North, New Hope, MN and legally described as: Lot
5, Block 3, Wonderland 111 Addition, Hennepin County, Minnesota (the "Property");
WHEREAS, the previous owner of the Property is deceased and the Property was
conveyed to her seven children ("Owners") through a probate proceeding in 2004;
WHEREAS, on November 5, 2014, the City secured and locked the house located on the
Property as it had fallen into severe disrepair and deterioration and the Property has been vacant
since that date;
WHEREAS, the Property is currently unoccupied and is in the redemption period
following a mortgage foreclosure commenced by the City of New Hope, foreclosing its mortgage
recorded on the Property and Sheriff's Sale of the Property that occurred on February 2, 2017;
WHEREAS, the Sheriff's Certificate of Sale was awarded to the high bidder, OIS, LLC;
WHEREAS, the City holds a junior mortgage on the Property that will allow the City to
redeem from OIS, LLC as a junior creditor following the end of the Owners' redemption period,
and then convey the Property to the EDA;
WHEREAS, the City has commenced an action to reduce the redemption period to five
(5) weeks under Minnesota Statutes in light of its unoccupied status;
WHEREAS, there has been unusually high interest in the Property by potential investors who have
been contacting the Owners of the Property;
WHEREAS, if a junior investor obtains a junior mortgage and exercises its right of redemption
following the City's redemption, it is possible that the City will not be able to obtain title to the Property;
WHEREAS, in an effort to ensure that the City obtains the Property through the creditor
redemption process and the City's desire to fairly compensate the Owners for their cooperation, it has come
to the attention of City staff that it must negotiate with the Owners to pay a certain amount of compensation
to the Owners;
WHEREAS, the City desires to treat all seven of the Owners equally and provide reasonable
compensation for the Owners' willingness to cooperate with the City and forego other potential investors'
offers to obtain junior liens on the Property which would enable an investor to potentially acquire the
Property as a junior creditor; ,
WHEREAS, the City has invested substantial time and money into the acquisition of the Property
in an effort to revitalize the neighborhood;
WHEREAS, City staff is seeking authority from the City Council to enable the City to
redeem as a junior creditor following the termination of the mortgagor's redemption period for the
amount of $12,300 plus any statutory attorney's fees, costs and interest incurred by OIS, LLC,
plus negotiate with the Owners to fairly compensate them up to a maximum collective amount of
$50,000, to enable the City to acquire the Property and then convey it to the EDA;
WHEREAS, the City is required to record a Notice of Intention to Redeem and pay the
required amount to redeem the Sheriff's Certificate and generally follow Minnesota Statutes
regarding a junior creditor redemption following a mortgage foreclosure sale;
WHEREAS, the estimated amount to redeem as a junior creditor and obtain the Sheriff's
Certificate will be $12,300 plus any statutory attorney's fees, costs and expenses required to
redeem, which shall be accomplished using EDA funds;
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, it is in the best interest of the City to acquire the Property through a
creditor's redemption, in order to redevelop 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 City Council for the City
to acquire the Property through a junior creditor redemption.
NOW, THEREFORE, BE IT RESOLVED by the City Council of 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 City to acquire the Property for redevelopment in
accordance with the City's scattered site housing program and policy.
3. That the acquisition of the Property by the City through a creditor's redemption
following mortgage foreclosure sale, for a sum of $12,300 plus all additional
statutory attorney's fees, costs and interest, plus authorization to pay the Owners
up to a maximum collective amount of $50,000 is approved.
4. The City shall use due diligence for correcting the Property's blighted condition
and conducting any necessary environmental cleanup of the Property to pursue this
redevelopment purpose and return the Property to the tax rolls for the benefit of all
taxing jurisdictions.
5. The Mayor and City Manager of the City 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 successful redemption
of the Property by the City as a junior creditor following the mortgage foreclosure
sale.
Dated the 13th day of March, 2017. .�
Kathi He or
Attest:_
Valerie Leone, City Clerk
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Louisiana Ave N.docx