082619 EDA Meeting Packet
EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday, August 26, 2019
President Kathi Hemken
Commissioner John Elder
Commissioner Cedrick Frazier
Commissioner Andy Hoffe
Commissioner Jonathan London
1. Call to order – EDA Meeting of August 26, 2019
2. Roll call
3. Approval of Minutes:
August 12, 2019
4. Resolution approving purchase agreement for the acquisition of 6027 West Broadway
(improvement project no. 1038)
5. Adjournment
EDA Meeting
Page 1 August 12, 2019
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes August 12, 2019
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 7:52 p.m.
ROLL CALL Present:
Kathi Hemken, President
John Elder, Commissioner
Cedrick Frazier, Commissioner
Andy Hoffe, Commissioner
Jonathan London, Commissioner
Staff Present:
Kirk McDonald, City Manager
Jeff Alger, Community Development Specialist
Tim Fournier, Police Chief
Valerie Leone, City Clerk
Jeff Sargent, Director of Community Development
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner Elder, seconded by Commissioner Frazier, to
approve the minutes of June 10, 2019. All present voted in favor. Motion carried.
IMP. PROJECT
1025
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution approving
purchase and redevelopment agreement with Novak-Fleck Incorporated for the
sale of 5212 Pennsylvania Avenue North (Improvement Project No. 1025).
Mr. Jeff Alger, Community Development Specialist, requested the EDA to conduct
a public hearing to consider the sale of the city-owned property at 5212
Pennsylvania Avenue North to Novak-Fleck, Inc.
He explained that Requests for Proposals marketing the lot were sent to a number
of builders and the city received four proposals from three builders. The city
manager and staff reviewed the proposals and selected Novak-Fleck as the
preferred proposal as the proposal contained more finished square footage and a
higher lot purchase price. He reviewed the proposals submitted by Novak-Fleck,
Houston Homes, and Great Buy Homes. He stated the RFP criteria included a non-
negotiable minimum sales price of $60,000 and that the new home be owner-
occupied for at least two years.
Mr. Alger stated Novak-Fleck’s projected sales price is $401,600. He noted the city
has worked with Novak-Fleck on five past projects and the builder has
demonstrated they can meet their targeted sales price. He reviewed financial
details including the project budget and tax revenue. He pointed out the primary
focus of the scattered site program is to target distressed single-family properties
throughout the city, with the goal of improving residential neighborhoods. It is
EDA Meeting
Page 2 August 12, 2019
understood that potential losses are incurred on each project, as the cost to acquire
the distressed properties and redevelop often exceeds the value of the new vacant
lot or rehabilitated home. Mr. Alger stated staff is working with AEM on a
template that can be used to calculate internal rate of return for future scattered
site housing projects and the topic will be discussed at the August 19 work session.
Mr. Alger stated a purchase and redevelopment agreement has been prepared
with a lot sales price of $65,000 and assurance that the provisions set forth in the
RFP will be met. Staff anticipates that closing of the lot sale will take place in
September, 2019.
Mr. Dale Anderson, Novak-Fleck’s realtor, was recognized. He responded to
questions from the EDA and indicated there is no pre-arranged buyer for the home
but he does not anticipate any difficulty in selling the property.
President Hemken thanked Mr. Anderson and asked him to relay the EDA’s
appreciation to Novak-Fleck.
CLOSE HEARING
Item 4
Motion was made by Commissioner Elder, seconded by Commissioner Frazier, to
close the public hearing. All present voted in favor. Motion carried.
RESOLUTION 2019-03
Item 4
Commissioner Elder introduced the following resolution and moved its adoption
“RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT
AGREEMENT WITH NOVAK-FLECK INCORPORATED FOR THE SALE OF
5212 PENNSYLVANIA AVENUE NORTH (IMPROVEMENT PROJECT NO.
1025)”. The motion for the adoption of the foregoing resolution was seconded by
Commissioner Frazier, and upon vote being taken thereon, the following voted in
favor thereof: Hemken, Elder, Frazier, Hoffe, London; and the following voted
against the same: None; Abstained: None; Absent: None; whereupon the
resolution was declared duly passed and adopted, signed by the president which
was attested to by the executive director.
IMP. PROJECT
1020
Item 5
President Hemken introduced for discussion EDA Item 5, Resolution awarding
the contract for rehabilitation work in association with the EDA-owned property
located at 3924 Utah Avenue North (Improvement Project No. 1020).
Mr. Jeff Alger, Community Development Specialist, explained the EDA purchased
the property for $190,100 as part of the city’s scattered site housing program. He
stated the house is in disrepair and substantial exterior and interior work is
needed in order to make it habitable and desirable.
Mr. Alger illustrated the condition of the property and reviewed the proposed scope of
work (interior and exterior). He stated bids were sought for the rehab work and only
one contractor, Day Construction, submitted a bid for the work. The base bid is
$158,794 and there were two alternate bids. Staff recommends awarding the base bid
and alternate number 1 for $14,877 for a master suite to increase marketability. He
stated alternate number 2 was $7,128 for cultured stone accent wall on the front of the
home.
He stated the total cost (base bid and alternate 1) is $173,671. He stated the proceeds
from the sale of the property will cover the majority of the costs and funding for the
EDA Meeting
Page 3 August 12, 2019
gap would be covered by the EDA budget. Factors include the housing market, any
unforeseen expenses, and whether the property can be sold without realtor fees. It was
noted the city will benefit from an increased property value and corresponding taxes.
The EDA discussed the fact that Day Construction completed a very nice rehab at 3984
Zealand Avenue North which sold quickly.
Mr. Matthew Day of Day Construction was recognized. He addressed questions from
the EDA. He noted the cost of the project is approximately 50 percent materials and 50
percent labor.
The EDA expressed support for the project.
RESOLUTION 2019-04
Item 5
Commissioner Frazier introduced the following resolution and moved its
adoption “RESOLUTION AWARDING THE CONTRACT FOR
REHABILITATION WORK IN ASSOCIATION WITH THE EDA-OWNED
PROPERTY LOCATED AT 3924 UTAH AVENUE NORTH (IMPROVEMENT
PROJECT NO. 1020)”. The motion for the adoption of the foregoing resolution
was seconded by Commissioner Elder, and upon vote being taken thereon, the
following voted in favor thereof: Hemken, Elder, Frazier, Hoffe; and the following
voted against the same: None; Abstained: London; Absent: None; whereupon the
resolution was declared duly passed and adopted, signed by the president which
was attested to by the executive director.
ADJOURNMENT Motion was made by Commissioner Frazier, seconded by Commissioner Elder, to
adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 8:27 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
I:\RFA\COMM DEV\2019\EDA\Scattered Site Housing\Q - 6027 West Broadway Acquisition 08-26-19.docx
Request for Action
August 26, 2019
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Jeff Alger, Community Development Specialist;
Jeff Sargent, Director of Community Development
Agenda Title
Resolution approving purchase agreement for the acquisition of 6027 West Broadway (improvement project
no. 1038)
Requested Action
Staff requests that the Economic Development Authority authorize entering into a Purchase Agreement for the
acquisition of 6027 West Broadway for a purchase price of $141,000. The city and seller would split the closing
costs associated with the sale evenly (estimated total closing costs $2,623).
Policy/Past Practice
The Economic Development Authority has acquired vacant distressed properties in the past as part of the city’s
scattered site housing program.
Background
The Economic Development Authority (EDA) has directed community development staff to pursue the
acquisition of distressed and functionally obsolete single-family homes as part of the city’s scattered site
housing program. The property at 6027 West Broadway is located in a priority redevelopment neighborhood
and is the lowest valued single-family home in the city. The 2018 assessed value of the property was $93,000
and the 2019 assessed value of the property was $115,000. The home includes less than 800 square feet of
living space above grade, two bedrooms, and one bathroom. It is located on a 0.25-acre parcel of land. Staff
believes the property is a good candidate for a demolition and rebuild project.
Since 2014, the city has acquired and demolished five homes in the neighborhood where the subject property
is located. One of the lots was split and six new homes have been constructed:
Address Year City Purchase Price Lot Sale Price New Home Sale Price
6059 West Broadway 2014 $115,000 $40,000 $226,150
6065 Louisiana Ave N 2015 $130,000 (lot split) $55,000 $325,000
6067 Louisiana Ave N 2015 $55,000 $323,900
7303 62nd Ave N 2017 $132,900 $55,000 $311,000
7311 62nd Ave N 2018 $130,000 $55,000 $319,900
7215 62nd Ave N 2018 $138,000 $61,000 $350,821
After learning that the property owner was interested in selling, staff ordered an appraisal that was
completed on June 11, 2019. The appraisal indicated the property is valued at $145,000. Staff proceeded to
meet with the property owner on multiple occasions. Several offers and counter offers were exchanged and
both parties eventually reached an agreement for the purchase of the home, contingent upon approval by the
EDA. The city would purchase the home for $141,000 and split closing costs evenly with the owner. The
assistant city attorney estimated the total closing costs to be $2,623, or $1,311.50 per party.
Agenda Section
EDA
Item Number
4
Request for Action, Page 2
Return on Investment
It is anticipated that expenses associated with the project will be approximately $163,512. Revenue from the
sale of the lot is estimated at $60,000, resulting in a loss of $103,512.
The proposed improvements would result in an increase in the taxable property value for the subject property.
If the property were to be valued at $315,000 in 2020, it is estimated that taxes allocated and payable to the city
in 2021 would represent an increase of $1,611.66, or 377.54%, as compared to those that were payable in 2019.
Estimated Market Value 2018, Payable 2019 Projected Market Value 2020, Payable 2021
$93,000 $315,000
Taxable Market Value 2018, Payable 2019 Projected Taxable Value 2020, Payable 2021
$64,130 $306,110
Net Taxes 2018, Payable 2019 Projected Net Taxes 2020, Payable 2021
$1,200.96 $5,406.96
Taxes Allocated to City 2018, Payable 2019 Taxes Allocated to City 2020, Payable 2021
$426.89 $2,038.55
The following table demonstrates the tax benefit to the city associated with the projected increase in taxable
market value for the property in the future:
Additional Taxes Collected By City Year # of Years
$1,611.66 2021 1
$3,223.32 2022 2
$4,834.98 2023 3
$6,446.64 2024 4
$8,058.30 2025 5
$16,116.60 2030 10
$24,174.90 2035 15
$32,233.20 2040 20
$40,291.50 2045 25
$48,349.80 2050 30
$104,757.90 2085 65
The increase in property taxes allocated to the city would not cover the shortfall for 65 years, unless other
substantial improvements were made to the property. The primary focus of the scattered site program is to
target distressed single-family properties throughout the city, with the goal of improving residential
neighborhoods. It is understood that potential losses are incurred on each project, as the cost to acquire the
distressed properties and redevelop often exceeds the value of the new vacant lot or rehabilitated home.
Staff is working with AEM on a template that can be used for future scattered site housing projects to calculate
the Internal Rate of Return for potential projects. Upon completion, it will be included in future reports to the
City Council.
Request for Action, Page 3
Funding
Funding for this project would come from the EDA budget.
Recommendation
Staff recommends that the EDA approve a resolution approving a purchase agreement for the acquisition of
6027 West Broadway at a purchase price of $141,000 with closing costs split evenly with the owner.
Attachments
Resolution
Purchase Agreement
Property summary
Sample layout
Budget & Return on Investment
Appraisal
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 19-___
RESOLUTION APPROVING PURCHASE AGREEMENT
FOR THE ACQUISITION OF 6027 WEST BROADWAY
(IMPROVEMENT PROJECT NO. 1038)
BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope
(“EDA”) as follows:
WHEREAS, on September 22, 2014, the City Council adopted Resolution No.14-126 at the City
Council meeting authorizing City community development staff to actively pursue the acquisition of
distressed single family homes for potential purchase by the EDA, as part of the City’s scattered site housing
program;
WHEREAS, the City Council has directed City staff to negotiate for the terms most favorable to
the City and EDA, and the execution of purchase agreements so as to secure purchase rights for these real
properties, contingent on the review and approval of the EDA to the terms of the purchase agreements;
WHEREAS, City staff have identified the opportunity to purchase certain real property located at
6027 West Broadway, New Hope, MN, 55428, P.I.D. 05-118-21-21-0033, and legally described as “Tract
D, Registered Land Survey No. 21, Hennepin County, Minnesota” (the “Property”) from Thomas R.
Manke (“Seller”);
WHEREAS, the house located on the Property was built in 1952 and has a functionally obsolete
floor plan and is in need of substantial rehabilitation and renovation due to deferred maintenance and
general lack of upgrades;
WHEREAS, City staff believes that the best use of the Property is demolition in order to maximize
the tax base by making the lot available for the development of a new residential housing unit;
WHEREAS, the Property will be acquired with EDA funds;
WHEREAS, the EDA has reviewed the proposed acquisition of Property and has determined that
it has no effect or relationship with the New Hope Comprehensive Plan. The Property is, and will remain
zoned as R-1 single family residential district following the EDA’s purchase of the Property and ultimate
re-sale of the Property;
WHEREAS, it is in the best interest of the EDA to purchase the Property from Thomas R.
Manke, in order to redevelop the Property in accordance with the City’s scattered site housing program
and policy; and
WHEREAS, City staff is hereby seeking approval from the EDA of the Purchase Agreement,
subject to the review and approval by the City Attorney of proper title evidence and other terms relating to
the closing on the sale of the Property.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for
the City of New Hope as follows:
1. That the above recitals are incorporated herein by reference.
2. It is in the best interest of the EDA to purchase the Property for demolition and
redevelopment in accordance with the City’s scattered site housing program and policy.
3. That the purchase of the Property by EDA from Seller, for a sum of $141,000.00, plus
equally dividing the closing costs between EDA and Seller, with other terms and conditions
as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved subject
to the review and approval by the City Attorney of proper title evidence and other terms
relating to the closing on the purchase of the Property.
4. The proposed acquisition of Property is consistent with the New Hope Comprehensive
Plan.
5. The City and EDA shall use due diligence for demolishing the structure located on the
Property and conducting any necessary cleanup of the Property to pursue redevelopment
and return the Property to the tax rolls for the benefit of all taxing jurisdictions.
6. The President and Executive Director and the New Hope City staff are authorized and
directed to sign all appropriate documents, and to take whatever additional actions are
necessary or desirable, to complete the purchase of the Property in accordance with the
Purchase Agreement.
Dated the 26th day of August, 2019.
____________________________________
Kathi Hemken, President
Attest: _____________________________
Kirk McDonald, Executive Director
P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11435 6027 West Broadway\Resolution approving purchase of 6027 West
Broadway.docx
Exhibit A
Purchase Agreement
See attached.
1
PURCHASE AGREEMENT
Date: August____, 2019
BUYER(S): 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
Seller agrees to sell and Buyer agrees to purchase the real property located at:
Street Address: 6027 West Broadway
City of New Hope, County of Hennepin, State of Minnesota, 55428 legally described as “Tract D, Registered Land Survey
No. 21, Hennepin County, Minnesota” and PID 05-118-21-21-0033. Said purchase shall include all improvements, fixtures,
and appurtenances on the property, if any, including but not limited to, the following (collectively the "Property"): garden
bulbs, plants, shrubs, trees, and lawn watering system; shed; storm sash, s torm doors, screens and awnings; window
shades, blinds; traverse, curtain, and drapery rods, valances, drapes, curtains, window coverings and treatments; towel
rods; attached lighting and bulbs; fan fixtures; plumbing fixtures; garbage disposals; water sof tener; water treatment system;
water heating systems, heating systems; air exchange system; radon mitigation system; sump pump; TV antenna/cable TV
jacks and wiring/TV wall mounts; wall/ceiling-mounted speakers and mounts; carpeting; mirrors; garage door o peners and
all controls; smoke detectors; fireplace screens, door and heatilators; BUILT-INS: dishwashers; refrigerators; wine/beverage
refrigerators; trash compactors; ovens; cook -top stoves; warming drawers; microwave ovens; hood fans; shelving; work
benches; intercoms; speakers; air conditioning equipment; electronic air filter; humidifier/dehumidifier; liquid fuel tanks (and
controls); pool/spa equipment; propane tank (and controls); security system equipment; TV satellite dish; AND the following
personal property shall be transferred with no additional monetary value, and free and clear of all liens and encumbrances:
______________________________________________
Notwithstanding the foregoing, leased fixtures are not included.
Notwithstanding the foregoing, the following item(s) are excluded from the purchase:
_________________________________________________________________________
Seller has agreed to sell the Property to Buyer for the sum of One Hundred Forty One Thousand and 00/100 Dollars
($141,000.00), which Buyer agrees to pay in the following manner:
1. CASH of 100 percent (100%) of the sale price.
The date of closing shall be on or before January 31, 2020, and shall occur at Midland Title, 7760 France Avenue South
#140, Bloomington, MN 55435 or at the offices of the City Attorney for City of New Hope: Jensen, Sondrall, Persellin &
Woods, P.A., 8525 Edinbrook Crossing, Suite 201, Brooklyn Park, MN 55443.
SALE OF BUYER'S PROPERTY CONTINGENCY: This Purchase Agreement IS NOT subject to an Addendum to Purchase
Agreement: Sale of Buyer's Property Contingency . (If answer is IS, see attached Addendum.) (If answer is IS NOT, the
closing of Buyer's property, if any, may still affect Buyer's ability to obtain financing, if financing is applicable.)
This Purchase Agreement IS NOT subject to cancellation of a previously written purchase agreement dated
_______________________, 20__. (If answer is IS, said cancellation shall be obtained no later than _____________,
20__. If said cancellation is not obtained by said date, this Purchase Agreement is canceled. Buyer and Seller shall
immediately sign a Cancellation of Purchase Agreement confirming said cancellation.)
Buyer has been made aware of the availability of Property inspections. Buyer does not elect to have a Property inspection
performed at Buyer's expense.
INSPECTION CONTINGENCY: This Purchase Agreement IS NOT subject to an Addendum to Purchase Agreement:
Inspection Contingency. (If answer is IS, see attached Addendum.)
DEED/MARKETABLE TITLE: Upon performance by Buyer, Seller shall deliver a (check one):
Warranty Deed joined in by spouse, if any, conveying marketable title, subject to
(a) building and zoning laws, ordinances, and state and federal regulations;
2
(b) restrictions relating to use or improvement of the Property without effective forfeiture provisions;
(c) reservation of any mineral rights by the State of Minnesota;
(d) utility and drainage easements which do not interfere with existing improvements;
(e) rights of tenants as follows (unless specified, not subject to tenancies) _____________; and
(f) others (must be specified in writing): ___________________________________________
REAL ESTATE TAXES: Seller shall pay on the date of closing all real estate taxes due and payab le in all prior years
including all penalties and interest.
Buyer shall pay PRORATED FROM DAY OF CLOSING real estate taxes due and payable in the year 2019.
Seller shall pay PRORATED TO DAY OF CLOSING real estate taxes due and payable in the year 2019. If the closing date
is changed, the real estate taxes paid shall, if prorated, be adjusted to the new closing date. If the Property tax status is a
part- or non-homestead classification in the year of closing, Seller SHALL NOT pay the difference between the homestead
and non-homestead.
Buyer shall pay real estate taxes due and payable in the year following closing and thereafter, the payment of which is not
otherwise herein provided. No representations are made concerning the amount of subsequent real esta te taxes.
DEFERRED TAXES/SPECIAL ASSESSMENTS:
SELLER SHALL PAY on date of closing any deferred real estate taxes (e.g., Green Acres) or special assessments,
payment of which is required as a result of the closing of this sale.
SELLER SHALL PAY on date of closing all installments of special assessments certified for payment, with the real estate
taxes due and payable in the year of closing.
SELLER SHALL PAY on date of closing all other special assessments levied as of the date of this Purchase Agreement.
SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as of the date of this Purchase Agreement
for improvements that have been ordered by any assessing authorities. (Seller's provision for payment shall be by payment
into escrow of two (2) times the estimated amount of the assessments or less, as required by Buyer's lender.)
Buyer shall pay any unpaid special assessments payable in the year following closing and thereafter, the payment of
which is not otherwise herein provided.
As of the date of this Purchase Agreement, Seller represents that Seller HAS NOT received a notice regarding any new
improvement project from any assessing authorities, the costs of which project may be assessed against the Property. Any
such notice received by Seller after the date of this Purchase Agreement and before closing shall be provided to Buyer
immediately. If such notice is issued after the date of this Purchase Agreement and on or before the date of closing, then
the parties may agree in writing, on or befo re the date of closing, to pay, provide for the payment of or assume the special
assessments. In the absence of such agreement, either party may declare this Purchase Agreement canceled by written
notice to the other party, or licensee representing or assisting the other party, in which case this Purchase Agreement is
canceled. If either party declares this Purchase Agreement canceled, Buyer and Seller shall immediately sign a Cancellation
of Purchase Agreement confirming said cancellation.
POSSESSION: Seller shall deliver possession of the Property no later than date of closing. Seller agrees to remove ALL
DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED HEREIN from the Property by possession date.
LINKED DEVICES: Seller warrants that Seller shall permanently disconnect or discontinue Seller's access or service to any
device or system on or serving the property that is connected or controlled wirelessly, via internet protocol ("IP") to a rou ter
or gateway or directly to the cloud no later than delivery of possession as specified in this Purchase Agreement.
PRORATIONS: All interest; unit owners' association dues; rents; and charges for city water, city sewer, electricity and
natural gas shall be prorated between the parties as of date of closing. Buyer sha ll pay Seller for remaining gallons of fuel
oil or liquid petroleum gas on the day of closing, at the rate of the last fill by Seller.
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TITLE AND EXAMINATION: As quickly as reasonably possible after Final Acceptance Date of this Purchase Agreement:
a. Seller shall deliver to Buyer a Commitment for an ALTA Form B owner's policy of title insurance (the
“Commitment”) issued by Midland Title (“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, th en 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 the parties shall be released from all further obligations
hereunder except obligations under this Agreement which provide for continued exer cise following
the cancellation or other termination of this Agreement; or
(ii) elect to have this Agreement remain in effect, in which event Buyer will be deemed to have
approved the previously-cited exception and the same shall be considered part of the Perm itted
Encumbrances.
Seller shall use Seller's best efforts to provide marketable title by the date of closing. Seller agrees to pay all costs and
fees necessary to convey marketable title including obtaining and recording all required documents, subject t o the
following:
In the event Seller has not provided marketable title by the date of closing, Seller shall have an additional 30 days
to make title marketable, or in the alternative, Buyer may waive title defects by written notice to Seller. In addition
to the 30-day extension, Buyer and Seller may, by mutual agreement, further extend the closing date. Lacking such
extension, either party may declare this Purchase Agreement canceled by written notice to the other party, or
licensee representing or assisting the other party, in which case this Purchase Agreement is canceled. If either party
declares this Purchase Agreement canceled, Buyer and Seller shall immediately sign a Cancellation of Purchase
Agreement confirming said cancellation.
SUBDIVISION OF LAND, BOUNDARIES, AND ACCESS: If this sale constitutes or requires a subdivision of land owned
by Seller, Seller shall pay all subdivision expenses and obtain all necessary governmental approvals. Seller warrants that
the legal description of the real property to be conveyed has been or shall be approved for recording as of the date of
closing. Seller warrants that the buildings are or shall be constructed entirely within the boundary lines of the Property. S eller
warrants that there is a right of access to the Property from a public right-of-way.
MECHANIC'S LIENS: Seller warrants that prior to the closing, payment in full will have been made for all labor, materials,
machinery, fixtures or tools furnished within the 120 days immediately preceding the closi ng in connection with construction,
alteration or repair of any structure on, or improvement to, the Property.
NOTICES: Seller warrants that Seller has not received any notice from any governmental authority as to condemnation
proceedings, or violation of any law, ordinance or regulation. If the Property is subject to restrictive covenants, Seller
warrants that Seller has not received any notice from any person or authority as to a breach of the covenants. Any such
notices received by Seller shall be provided to Buyer immediately.
DIMENSIONS: Buyer acknowledges any dimensions, square footage or acreage of land or improvements provided by
Seller, third party, or broker representing or assisting Seller are approximate. Buyer shall verify the accuracy of info rmation
to Buyer's satisfaction, if material, at Buyer's sole cost and expense.
ACCESS AGREEMENT: Seller agrees to allow reasonable access to the Property for performance of any surveys or
inspections agreed to herein.
4
RISK OF LOSS: If there is any loss or damage to the Property between the date hereof and the date of closing for any
reason, including fire, vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller. If the Property is
destroyed or substantially damaged before the closing date, this Purchase Agreement is canceled, at Buyer's option, by
written notice to Seller or licensee representing or assisting Seller. If Buyer cancels this Purchase Agreement, Buyer and
Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation.
TIME OF ESSENCE: Time is of the essence in this Purchase Agreement.
CALCULATION OF DAYS: Any calculation of days begins on the first day (calendar or Business Days as specified)
following the occurrence of the event specified and includes subsequent days (calendar or Business Days as specified)
ending at 11:59 P.M. on the last day.
BUSINESS DAYS: "Business Days" are days which are not Saturdays, Sundays or state or federal holidays unless stated
elsewhere by the parties in writing.
DEFAULT: If Buyer defaults in any of the agreements herein, Seller may cancel this Purchase Agreement, and Buyer and
Seller shall affirm the same by a written cancellation agreement.
If Buyer defaults in any of the agreements hereunder, S eller may terminate this Purchase Agreement under the provisions
of either MN Statute 559.21 or MN Statute 559.217, whichever is applicable. If either Buyer or Seller defaults in any of the
agreements hereunder or there exists an unfulfilled condition afte r the date specified for fulfillment, either party may cancel
this Purchase Agreement under MN Statute 559.217, Subd. 3. Whenever it is provided herein that this Purchase Agreement
is canceled, said language shall be deemed a provision authorizing a Declar atory Cancellation under MN Statute 559.217,
Subd. 4.
If this Purchase Agreement is not canceled or terminated as provided hereunder, Buyer or Seller may seek actual damages
for breach of this Purchase Agreement or specific performance of this Purchase Agreement; and, as to specific performance,
such action must be commenced within six (6) months after such right of action arises.
DESCRIPTION OF PROPERTY CONDITION: Buyer and Seller hereby waive the written disclosure requirements set forth
in Minnesota Statutes §§513.52 - 513.60.
BUYER HAS RECEIVED THE INSPECTION REPORTS, IF REQUIRED BY MUNICIPALITY.
BUYER IS NOT RELYING ON ANY ORAL REPRESENTATIONS REGARDING THE CONDITION OF THE PROPERTY
AND ITS CONTENTS.
SELLER WARRANTS THAT THE PROPERTY IS EITHER DIRECTLY OR INDIRECTLY CONNECTED TO:
CITY SEWER-YES / CITY WATER-YES
SUBSURFACE SEWAGE TREATMENT SYSTEM
SELLER DOES NOT KNOW OF A SUBSURFACE SEWAGE TREATMENT SYSTEM ON OR SERVING THE PROPERTY.
(If answer is DOES, and the system does not require a state permit, see Disclosure. Statement: Subsurface Sewage
Treatment System.)
PRIVATE WELL
SELLER DOES NOT KNOW OF A WELL ON OR SERVING THE PROPERTY. (If answer is DOES and well is located on
the Property, see Disclosure Statement: Well.)
THIS PURCHASE AGREEMENT IS NOT SUBJECT TO AN ADDENDUM TO PURCHASE AGREEMENT: SUBSURFACE
SEWAGE TREATMENT SYSTEM AND WELL INSPECTION CONTINGENCY. (If answer is IS, see attached Addendum.)
IF A WELL OR SUBSURFACE SEWAGE TREATMENT SYSTEM EXISTS ON THE PROPERTY, BUYER HAS RECEIVED
A DISCLOSURE STATEMENT: WELL AND/OR A DISCLOSURE STATEMENT: SUBSURFACE SEWAGE TREATMENT
SYSTEM.
5
NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory offender registry
and persons registered with the predatory offender registry under MN Statute 243.166 may be obtained by contacting the
local law enforcement offices in the community where the Property is located or t he Minnesota Department of Corrections
at (651) 361-7200, or from the Department of Corrections web site at www.corr.state.mn.us.
HOME PROTECTION/WARRANTY PLAN: Buyer and Seller are advised to investigate the various home protection/
warranty plans available for purchase. Different home protection/warranty plans have different coverage options, exclusions,
limitations and service fees. Most plans exclude pre-existing conditions. (Check one.)
A Home Protection/Warranty Plan will be obtained by BUYER SELLER and paid for by BUYER SELLER to be issued
by _____________________________________ at a cost not to exceed $________.
No Home Protection/Warranty Plan is negotiated as part of this Purchase Agreement. However, Buyer may elect to
purchase a Home Protection/Warranty Plan.
NOTICE
is Seller’s Agent Buyer’s Agent Dual Agent Facilitator
(Licensee)
(Real Estate Company Name)
is Seller’s Agent Buyer’s Agent Dual Agent Facilitator
(Licensee)
(Real Estate Company Name)
THIS NOTICE DOES NOT SATISFY MINNESOTA STATUTORY AGENCY DISCLOSURE REQUIREMENTS.
DUAL AGENCY REPRESENTATION
Dual Agency representation DOES NOT apply in this transaction.
Broker represents both the Seller(s) and the Buyer(s) of the Property involved in this transaction, which creates a dual
agency. This means that Broker and its salespersons owe fiduciary duties to both Seller(s) and Buyer(s). Because the
parties may have conflicting interests, Broker and its salespersons are prohibited from advocating exclusively for either
party. Broker cannot act as a dual agent in this transaction without the consent of both Seller(s) and Buyer(s).
Seller(s) and Buyer(s) acknowledge that
(1) confidential information communicated to Broker which regards price, terms, or motivation to buy or sell will remain
confidential unless Seller(s) or Buyer(s) instructs Broker in writing to disclose this information. Other information will
be shared;
(2) Broker and its salespersons will not represent the interest of either party to the detriment of the other; and
(3) within the limits of dual agency, Broker and its salespersons will work diligently to facilitate the mechanics of the
sale.
With the knowledge and understanding of the explanation above, Seller(s) and Buyer(s) authorize and instruct Broker and
its salesperson to act as dual agents in this transaction.
Seller Buyer
Date Date
CLOSING COSTS: Buyer and Seller agree to each be responsible for paying for ½ of the closing costs incurred in this sale,
which may effectively increase the cash outlay at closing or reduce the proceeds from the sale.
6
FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT ("FIRPTA"): Section 1445 of the Internal Revenue Code
provides that a transferee ("Buyer") of a United States real property interest must be notified in writing and must withhold
tax if the transferor ("Seller") is a foreign person and no exceptions from FIRPTA withholding apply. Buyer and Seller agree
to comply with FIRPTA requirements under Section 1445 of the Internal Revenue Code.
Seller shall represent and warrant, under the penalties of perjury, whether Seller is a "foreign person" (as the same is defined
within FIRPTA), prior to closing. Any representations made by Seller with respect to this issue shall survive the closing and
delivery of the deed.
Buyer and Seller shall complete, execute, and deliver, on or before closing, any instrument, affidavit, or statement
reasonably necessary to comply with the FIRPTA requirements, including delivery of their respective federal taxpayer
identification numbers or Social Security numbers.
Due to the complexity and potential risks of failing to comply with FIRPTA, including the Buyer 's responsibility for withholding
the applicable tax, Buyer and Seller should seek appropriate legal and tax advice regarding FIRPTA compliance, as
the respective licensee's representing or assisting either party will be unable to assure either party wheth er the
transaction is exempt from FIRPTA withholding requirements.
ENTIRE AGREEMENT: This Purchase Agreement and any addenda or amendments signed by the parties shall constitute
the entire agreement between Buyer and Seller. Any other written or oral comm unication between Buyer and Seller,
including, but not limited to, e-mails, text messages, or other electronic communications are not part of this Purchase
Agreement. This Purchase Agreement can be modified or canceled only in writing signed by Seller and Buyer or by operation
of law. All monetary sums are deemed to be United States currency for purposes of this Purchase Agreement.
ELECTRONIC SIGNATURES: The parties agree the electronic signature of any party on any document related to this
transaction constitute valid, binding signatures.
FINAL ACCEPTANCE: To be binding, this Purchase Agreement must be fully executed by both parties and a copy must
be delivered.
SURVIVAL: All warranties specified in this Purchase Agreement shall survive the delivery of the deed or contract for deed.
OTHER: Buyer’s obligation to purchase the Property under this Purchase Agreement is contingent on the following:
(1) Review and approval of the terms of the Purchase Agreement by the Economic Development Authority in and
for the City of New Hope to the terms of the Purchase Agreement.
If the above contingenc y is not met, Buyer may declare this Purchase Agreement cancele d by written notice to Seller in
which case this Purchase Agreement is canceled. If Buyer declares this Purchase Agreement canceled due to the failure
of one of the above contingencies, Buyer and Seller shall immediately sign a Cancellation of Purchase Ag reement
confirming said cancellation.
Seller will not be required to complete the City of New Hope Point of Sale inspection.
ADDENDA AND PAGE NUMBERING: Attached addenda are a part of this Purchase Agreement.
Enter total number of pages of this Purchase Agreement, including addenda: __ pages.
7
NOTE: Disclosures and optional Arbitration Agreement are not part of this Purchase Agreement and should not
be part of the page numbering.
I, the owner of the Property, accept this Purchase Agreement
and authorize the listing broker to withdraw said Property from
the market, unless instructed otherwise in writing.
I have reviewed all pages of this Purchase Agreement.
If checked, this Agreement is subject to attached
Addendum to Purchase Agreement: Counteroffer.
FIRPTA: Seller represents and warrants, under penalty of
perjury, that Seller IS NOT a foreign person (i.e., a non-resident
alien individual, foreign corporation, foreign partnership, foreign
trust, or foreign estate for purposes of income taxation. This
representation and warranty shall survive the closing of the
transaction and the delivery of the deed.
I agree to purchase the Property for the price and on the terms
and conditions set forth above.
I have reviewed all pages of this Purchase Agreement
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
Thomas R. Manke
By: ______________
(Seller’s Signature) (Date) (Buyer’s Signature) (Date)
__Thomas R. Manke______________________ EDA in and for the City of New Hope
(Seller’s Printed Name) (Buyer’s Printed Name)
(Marital Status) Single Kirk McDonald
Its: Executive Director
THIS IS A LEGALLY BINDING CONTRACT BETWEEN BUYER(S) AND SELLER(S).
IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL.
P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11435 6027 West Broadway\Purchase Agreement.docx
6027 West Broadway
Owner: Thomas Manke
Size: 0.25 acres Sale Date: July 1993 Sale Price: $51,900
Assessed 2018, Payable 2019 Assessed 2019, Payable 2020
Market Value: $93,000 (lowest in city) Market Value: $115,000
Total Tax: $1,201
Combined size of subject parcel, parcel to north, and parcel to south: 0.86 acres
Previous correspondence: Letter from Aaron Chirpich December 20, 2017, expressing interest
in property, offering contract for an appraisal to be completed to establish fair market value.
6027 West Broadway
Recent scattered site housing project (since 2014)
6027 West Broadway
R-1, Single-family residential
Side setback = 10’/5’ for garage
150’
Potential Home
R
e
a
r
s
e
t
b
a
c
k
=
2
5
’
110.8’
8
8
.
6
8
1
0
6
.
8
3
F
r
o
n
t
s
e
t
b
a
c
k
=
3
0
’
Side setback = 10’/5’ for garage
Budget & Return on Investment for 6027 West Broadway
EXPENSES AMOUNT
Appraisal (350.00)$
Acquisition (including closing costs)(142,312.00)$
Legal costs for purchase (estimated)(1,500.00)$
Demolition survey (650.00)$
Demolition and site prep (estimated)(13,000.00)$
Well sealing (estimated)(2,000.00)$
Real estate taxes (estimated)(700.00)$
Lawn services (estimated)(200.00)$
Utility billing (estimated)(150.00)$
Public hearing notice (estimated)(150.00)$
Closing costs for sale (estimated)(1,500.00)$
Legal costs for sale (estimated)(1,000.00)$
TOTAL (163,512.00)$
REVENUE AMOUNT
EDA (estimated lot sale proceeds) 60,000.00$
TOTAL 60,000.00$
RETURN ON INVESTMENT
TOTAL COST/REVENUE (103,512.00)$ ‐63.31%
PROJECTED ADDITIONAL TAX REVENUE AMOUNT TOTAL COST/REVENUE
Year 1 (2021) 1,611.66$ (101,900.34)$ ‐62.32%
Year 2 (2022) 3,223.32$ (100,288.68)$ ‐61.33%
Year 3 (2023) 4,834.98$ (98,677.02)$ ‐60.35%
Year 4 (2024) 6,446.64$ (97,065.36)$ ‐59.36%
Year 5 (2025) 8,058.30$ (95,453.70)$ ‐58.38%
Year 10 (2030) 16,116.60$ (87,395.40)$ ‐53.45%
Year 15 (2035) 24,174.90$ (79,337.10)$ ‐48.52%
Year 20 (2040) 32,233.20$ (71,278.80)$ ‐43.59%
Year 25 (2045) 40,291.50$ (63,220.50)$ ‐38.66%
Year 30 (2050) 48,349.80$ (55,162.20)$ ‐33.74%
Year 65 (2085) 104,757.90$ 1,245.90$ 0.76%
*Based on new home valued at $315,000
Appraisal Professionals of MN LLC
Jayne Preusse
Minneapolis, MN 55431
(612)267-5269
06/18/2019
Jeff Alger
City of New Hope
4401 Xylon Ave N
New Hope, MN 55428
Re:Property:6027 W Broadway Ave
New Hope, MN 55428
Borrower:N/A
File No.:AP90224
Opinion of Value: $145,000
Effective Date:06/11/2019
In accordance with your request, we have appraised the above referenced property. The report of that appraisal is
attached.
The purpose of the appraisal is to develop an opinion of market value for the property described in this appraisal
report, as improved, in unencumbered fee simple title of ownership.
This report is based on a physical analysis of the site and improvements, a locational analysis of the neighborhood and
city, and an economic analysis of the market for properties such as the subject. The appraisal was developed and the
report was prepared in accordance with the Uniform Standards of Professional Appraisal Practice.
The opinion of value reported above is as of the stated effective date and is contingent upon the certification and
limiting conditions attached.
It has been a pleasure to assist you. Please do not hesitate to contact me, if we can be of additional service to you.
Sincerely,
Jayne Preusse
License or Certification #: 20559939
State: MN Expires: 08/31/2019
jstrikos@msn.com
APPRAISAL OF REAL PROPERTY
6027 W Broadway Ave
New Hope, MN 55428
REGISTERED LAND SURVEY NO. 0021 HENNEPIN COUNTY, MINNESOTA
City of New Hope
4401 Xylon Ave N
New Hope, MN 55428
$145,000
06/11/2019
Jayne Preusse
Appraisal Professionals of MN LLC
Certified Residential Appraiser
Minneapolis, MN 55431
(612)267-5269
jstrikos@msn.com
Form GA1V - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
LOCATED AT
FOR
OPINION OF VALUE
AS OF
BY
Form UA2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
6027 W Broadway
AP90224
6027 W Broadway Ave New Hope MN 55428
REGISTERED LAND SURVEY NO. 0021 HENNEPIN COUNTY, MINNESOTA Hennepin
05-118-21-21-0033 2019 1,201 0
N/A Thomas R Manke
N/A
New Hope 33460 0215.01
N/A N/A N/A
City of New Hope 4401 Xylon Ave N, New Hope, MN 55428
Jayne Preusse Eden Prairie MN 55344
80
20
140
420
235
0
119
59
70
3
3
12
Other 12
Int 694 to the north, CR 81 to the east, CR 9 to the south, and State Highway 169 to the west.
Market trends analysis was from a 1 mile radius from the subject property, not crossing major boundaries.
Under present land use, 12% indicates "Other". The primary portion of this amount includes parks, miscellaneous, water and undeveloped
land. This does not indicate any negative impact on the Subject's value & marketability at this time.
Market data indicates overall property values have been increasing for the previous 12 month period prior to the effective date of this
appraisal. Market times are deemed to be in the "0-3 months" range at this time.
107x150x89x111
11,038 sf
R1 - Single Family
Asphalt
None
None
Yes
None
Generally Level
Average
Irregular
Average
A;Com/Con/PL
Average
Dirt
Typical Easements
X 11/04/2016
27053C0203F
Subject is located with
a busier street of W Broadway to the front, commercial to the front and condominiums to the one side and rear. External is considered from the noise and view of the
traffic and any external associated from the commercial, condominiums and apartments. External is considered in the Sales Comparison Grid.
1
1
Detached
Rambler
Existing
67
45
Concrete/Avg
Stuc/W/Avg
Asphalt/Avg
Aluminum/Avg
DH/Hg/GB/Avg
Yes/Avg
N/A
N/A
N/A
Yes/Full
None
None
Yes/See Attach
None
793
50
Finished
SR/Wd/A
Cpt/Con/A
None
Unkn
Unkn
Unkn
Unkn
1 1 793
1 1 1 1 2 1 793
5 2 1.0 793
Cp/Wd/Vyl/Avg
SR/Pl/W/Avg
Wood/Avg
Tile/Avg
Tile/Avg
Wood/Avg
Yes
FWA
Gas
Avg
None
N/A
N/A
N/A
None
None
None
None
CL
None
Yes
0
1
0
0
6
Typical energy efficient items circa 1952. Unable to determine continued upkeep, however
furnace was observed to be in average condition. See attached addendum.
The subject is
a "rambler" detached single family home reflecting overall average condition as compared to competing properties of a similar age and
design. The subject property does not exhibit any functional obsolescence. See attached addendum and photo addendum. External is
observed from the busier street of West Broadway and commercial to the front, along with condos/parking lot to the rear.
None known.
Jayne Strikos
Property Description File No.UNIFORM RESIDENTIAL APPRAISAL REPORT
S U B J E C T
Property Address
Legal Description
Assessor's Parcel No.
Borrower
Property rights appraised
Neighborhood or Project Name
Sale Price $
Lender/Client
Appraiser
Location
Built up
Growth rate
Property values
Demand/supply
Marketing time
City State Zip Code
County
Tax Year R.E. Taxes $Special Assessments $
Current Owner Occupant:Owner Tenant Vacant
Fee Simple Leasehold Project Type PUD Condominium (HUD/VA only)HOA $/Mo.
Map Reference Census Tract
Date of Sale Description and $ amount of loan charges/concessions to be paid by seller
Address
Address
N E I G H B O R H O O D
Predominant
occupancy
Single family housing Present land use %Land use change
Note: Race and the racial composition of the neighborhood are not appraisal factors.
Predominant
Urban
Over 75%
Rapid
Increasing
Shortage
Under 3 mos.
Suburban
25-75%
Stable
Stable
In balance
3-6 mos.
Rural
Under 25%
Slow
Declining
Over supply
Over 6 mos.
Owner
Tenant
Vacant (0-5%)
Vac.(over 5%)
PRICE AGE
$(000)(yrs)
Low
High
One family
2-4 family
Multi-family
Commercial
Not likely
In process
Likely
To:
Neighborhood boundaries and characteristics:
Factors that affect the marketability of the properties in the neighborhood (proximity to employment and amenities, employment stability, appeal to market, etc.):
Market conditions in the subject neighborhood (including support for the above conclusions related to the trend of property values, demand/supply, and marketing time
-- such as data on competitive properties for sale in the neighborhood, description of the prevalence of sales and financing concessions, etc.):
P U D
Project Information for PUDs (If applicable) - - Is the developer/builder in control of the Home Owners' Association (HOA)?Yes No
Approximate total number of units in the subject project Approximate total number of units for sale in the subject project
Describe common elements and recreational facilities:
S I T E
Dimensions
Site area
Specific zoning classification and description
Zoning compliance
Highest & best use as improved:
Corner Lot Yes No
Legal Legal nonconforming (Grandfathered use)Illegal No zoning
Present use Other use (explain)
Utilities Off-site Improvements
Electricity
Gas
Water
Sanitary sewer
Storm sewer
Public Other Type Public Private
Street
Curb/gutter
Sidewalk
Street lights
Alley
Topography
Size
Shape
Drainage
View
Landscaping
Driveway Surface
Apparent easements
FEMA Special Flood Hazard Area
FEMA Zone
FEMA Map No.
Map Date
Yes No
Comments (apparent adverse easements, encroachments, special assessments, slide areas, illegal or legal nonconforming zoning use, etc.):
D E S C R I P T I O N O F I M P R O V E M E N T S
GENERAL DESCRIPTION
No. of Units
No. of Stories
Type (Det./Att.)
Design (Style)
Existing/Proposed
Age (Yrs.)
Effective Age (Yrs.)
EXTERIOR DESCRIPTION
Foundation
Exterior Walls
Roof Surface
Gutters & Dwnspts.
Window Type
Storm/Screens
Manufactured House
FOUNDATION
Slab
Crawl Space
Basement
Sump Pump
Dampness
Settlement
Infestation
BASEMENT
Area Sq. Ft.
% Finished
Ceiling
Walls
Floor
Outside Entry
INSULATION
Roof
Ceiling
Walls
Floor
None
Unknown
ROOMS
Basement
Level 1
Level 2
Finished area above grade contains:Rooms;Bedroom(s);Bath(s);Square Feet of Gross Living Area
Foyer Living Dining Kitchen Den Family Rm.Rec. Rm.Bedrooms # Baths Laundry Other Area Sq. Ft.
INTERIOR Materials/Condition
Floors
Walls
Trim/Finish
Bath Floor
Bath Wainscot
Doors
HEATING
Type
Fuel
Condition
COOLING
Central
Other
Condition
KITCHEN EQUIP.
Refrigerator
Range/Oven
Disposal
Dishwasher
Fan/Hood
Microwave
Washer/Dryer
ATTIC
None
Stairs
Drop Stair
Scuttle
Floor
Heated
Finished
AMENITIES
Fireplace(s) #
Patio
Deck
Porch
Fence
Pool
CAR STORAGE:
None
Garage
Attached
Detached
Built-In
Carport
Driveway
# of cars
C O M M E N T S
Additional features (special energy efficient items, etc.):
Condition of the improvements, depreciation (physical, functional, and external), repairs needed, quality of construction, remodeling/additions, etc.:
Adverse environmental conditions (such as, but not limited to, hazardous wastes, toxic substances, etc.) present in the improvements, on the site, or in the
immediate vicinity of the subject property.:
Freddie Mac Form 70 6/93 Fannie Mae Form 1004 6/93PAGE 1 OF 2
Form UA2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
35,000
793
793
213
35,000
6027 W Broadway
AP90224
Estimated economic life based on 100
total years. The most recent and similar land sales to the
subject per RMLS include the following: RMLS #4816981
$32,000, #4779014 $55,000 and #4780925 $75,000.
Estimated Remaining Economic Life: 55
6027 W Broadway Ave
New Hope, MN 55428
N/A
RMLS/HennCA
Inspect/Owner
A;BS/Com/Con/PL
Fee Simple
11,038 sf
A;Com/Con/PL
Rambler
Q5
67
C4
5 2 1.0
793
780sf390sfwu
1rr0br0ba1o
Average
FWA
None
1gd6dw
None
None
CL
Notable Extras None
9/93-51,900
RMLS/HenneCA
06/11/2019
7911 59th Ave N
New Hope, MN 55428
0.38 miles SW
167,500
168.34
RMLS#4970742/29DOM
RMLS/HenneAssessWeb/Dr-B
ArmLth
Cash;0 0
s07/18;Unk +5,583
B;Res/GC -5,000
Fee Simple
10125 sf 0
B;Res/GC -4,000
Rambler
Q5
63 0
C4
4 2 1.0 0
995 -5,050
995sf692sfwo -7,040
1rr1br1ba1o 0
Average
FWA C/Air -2,000
None
1ga4dw 0
Deck -1,000
2 FP -2,000
None 0
None
-20,507
Net 12.2 %
Gross 18.9 %146,993
RMLS/HenneCtyAssesWeb
06/11/2019
5900 Elmhurst Ave
Crystal, MN 55428
0.57 miles E
146,500
196.38
RMLS#4979463/406DOM
RMLS/HenneAssessWeb/Dr-B
REO
Conv;4395 0
s08/18;Unk +3,906
A;Airport/BsR 0
Fee Simple
12353 sf 0
A;BsR/Eql 0
Rambler
Q5
66 0
C4
4 2 1.0 0
746 0
0sf +7,800
0
Average
FWA C/Air -2,000
None
2gd6dw -4,000
None
None
CL
None
5,706
Net 3.9 %
Gross 12.1 %152,206
RMLS/HenneCtyAssesWeb
06/11/2019
6817 52nd Ave N
Crystal, MN 55428
1.12 miles SE
192,000
213.33
RMLS#5206292/25DOM
RMLS/HenneAssessWeb/Dr-B
ArmLth
FHA;5760 0
s06/19;Unk 0
A;RR -2,000
Fee Simple
6023 sf 0
B;Woods -4,000
Rambler
Q5 -6,000
65 0
C4 -4,000
4 2 1.0 0
900 -2,675
0sf +7,800
0
Average
FWA C/Air -2,000
None
1gd6dw
Dk/OPor -2,000
None
Wd 0
None
-14,875
Net 7.7 %
Gross 15.9 %177,125
RMLS/HenneCtyAssesWeb
06/11/2019
See attached addendum.
No other sales of the subject were noted within the last three years. There were no other previous sales within the past 12 months for the comparables, except for
Comparable #1 which was transferred for an affidavit $0, on 09/15/2017 and Comparable #2 transferred on 06/06/2017 $0 for a quit claim deed.
145,000
N/A
See Attached Addendum.
Most emphasis was placed on the Sales Comparison Approach to Value. The Income (GRM) Approach and Cost Approach
were both considered with the Sales Comparison Approach weighing in as the most viable approach to value/opinion of value.
06/2019
06/11/2019
145,000
Jayne Preusse
06/18/2019
20559939 MN
Valuation Section File No.UNIFORM RESIDENTIAL APPRAISAL REPORT
C O S T A P P R O A C H
ESTIMATED SITE VALUE
ESTIMATED REPRODUCTION COST-NEW-OF IMPROVEMENTS:
Dwelling
Garage/Carport
Total Estimated Cost New
Less
Depreciation
Depreciated Value of Improvements
"As-is" Value of Site Improvements
INDICATED VALUE BY COST APPROACH
Sq. Ft.
Sq. Ft.
Sq. Ft.
@
@
@
$
$
$
Physical Functional External
=
=
=
=
=
$
$
=
=
=
=
=
$
$
$
$
$
Comments on Cost Approach (such as, source of cost estimate, site value,
square foot calculation and for HUD, VA and FmHA, the estimated remaining
economic life of the property):
S A L E S C O M P A R I S O N A N A L Y S I S
////
ITEM SUBJECT COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3
ITEM SUBJECT COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3
DESCRIPTION DESCRIPTION +( )$ Adjust.–DESCRIPTION +( )$ Adjust.–DESCRIPTION +( )$ Adjust.–
Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths
Sq. Ft.Sq. Ft.Sq. Ft.Sq. Ft.
+–+–+–
$
$$
$
$
$
$
$
$
$
$
$
$
$
$
$$
Address
Proximity to Subject
Sales Price
Price/Gross Living Area
Data and/or
Verification Source
VALUE ADJUSTMENTS
Sales or Financing
Concessions
Date of Sale/Time
Location
Leasehold/Fee Simple
Site
View
Design and Appeal
Quality of Construction
Age
Condition
Above Grade
Room Count
Gross Living Area
Basement & Finished
Rooms Below Grade
Functional Utility
Heating/Cooling
Energy Efficient Items
Garage/Carport
Porch, Patio, Deck,
Fireplace(s), etc.
Fence, Pool, etc.
Net Adj. (total)
Adjusted Sales Price
of Comparable
Comments on Sales Comparison (including the subject property's compatibility to the neighborhood, etc.):
Date, Price and Data
Source, for prior sales
within year of appraisal
Analysis of any current agreement of sale, option, or listing of subject property and analysis of any prior sales of subject and comparables within one year of the date of appraisal:
INDICATED VALUE BY SALES COMPARISON APPROACH
INDICATED VALUE BY INCOME APPROACH (if Applicable) Estimated Market Rent /Mo.x Gross Rent Multiplier =
R E C O N C I L I A T I O N
This appraisal is made "as is"subject to the repairs, alterations, inspections or conditions listed below subject to completion per plans & specifications.
Conditions of Appraisal:
Final Reconciliation:
The purpose of this appraisal is to estimate the market value of the real property that is the subject of this report, based on the above conditions and the certification, contingent
and limiting conditions, and market value definition that are stated in the attached Freddie Mac Form 439/FNMA form 1004B (Revised ).
Signature
Name
Date Report Signed
State Certification #State
Or State License #State
Signature
Name
Date Report Signed
State Certification #State
Or State License #State
Inspect Property
Did Did Not
I (WE) ESTIMATE THE MARKET VALUE, AS DEFINED, OF THE REAL PROPERTY THAT IS THE SUBJECT OF THIS REPORT, AS OF
(WHICH IS THE DATE OF INSPECTION AND THE EFFECTIVE DATE OF THIS REPORT) TO BE $
APPRAISER:SUPERVISORY APPRAISER (ONLY IF REQUIRED):
Freddie Mac Form 70 6/93 Fannie Mae Form 1004 6-93PAGE 2 OF 2
Form UA2.(AC) - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
6027 W Broadway Ave
New Hope, MN 55428
N/A
RMLS/HennCA
Inspect/Owner
A;BS/Com/Con/PL
Fee Simple
11,038 sf
A;Com/Con/PL
Rambler
Q5
67
C4
5 2 1.0
793
780sf390sfwu
1rr0br0ba1o
Average
FWA
None
1gd6dw
None
None
CL
Notable Extras None
9/93-51,900
RMLS/HenneCA
06/11/2019
6714 58th Ave N
Crystal, MN 55428
0.51 miles SE
140,000
148.46
RMLS#4972116/3DOM
RMLS/HenneAssessWeb/Dr-B
ArmLth
Conv;0 0
s07/18;Unk +4,666
N;Res -4,000
Fee Simple
9382 sf 0
N;Res -2,000
Rambler
Q5
64 0
C4 +2,000
-2,000
6 3 1.0 0
943 -3,750
0sf +7,800
0
Average
FWA
None
1ga4dw 0
Patio -1,000
None
Wd/Wire 0
None
1,716
Net 1.2 %
Gross 19.4 %141,716
RMLS/HenneCtyAssesWeb
06/11/2019
7105 Cartisian Ave
Brooklyn Park, MN 55428
0.55 miles NE
195,000
202.70
RMLS#5236441/10DOM
RMLS/HenneAssessWeb/Dr-B
Listing
O;L/S Ratio 0
Active/Pending 0
B;Comm/BsR 0
Fee Simple
19602 sf -4,000
N;Res -2,000
Rambler
Q5 -6,000
61 0
C3 -4,000
-2,000
5 3 1.0 0
962 -4,225
962sf863sfwu -9,460
0rr1br1ba1o 0
Average
FWA C/Air -2,000
None
1gd6dw
None
None
None 0
None
-33,685
Net 17.3 %
Gross 17.3 %161,315
RMLS/HenneCtyAssesWeb
06/11/2019
7624 59th Pl N
Crystal, MN 55428
0.13 miles SW
179,000
204.57
RMLS#5226207/39DOM
RMLS/HenneAssessWeb/Dr-B
Listing
O;L/S Ratio 0
Active 0
N;Res -4,000
Fee Simple
10489 sf 0
N;Res -2,000
Rambler
Q5 +2,000
68 0
C4 +2,000
-2,000
5 3 1 0
875 0
875sf270sfwu +2,400
1rr0br0.1ba1o 0
Average
FWA C/Air -2,000
None
1gd6dw
Deck -1,000
None
CL
Lender Owned +2,000
-2,600
Net 1.5 %
Gross 10.8 %176,400
RMLS/HenneCtyAssesWeb
06/11/2019
4 5 6
S A L E S C O M P A R I S O N A N A L Y S I S
UNIFORM RESIDENTIAL APPRAISAL REPORT
MARKET DATA ANALYSIS
These recent sales of properties are most similar and proximate to subject and have been considered in the market analysis. The description includes a dollar adjustment, reflecting
market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparable property is superior to, or more
favorable than, the subject property, a minus (-) adjustment is made, thus reducing the indicated value of the subject. If a significant item in the comparable is inferior to, or less
favorable than, the subject property, a plus (+) adjustment is made, thus increasing the indicated value of the subject.
////
ITEM SUBJECT COMPARABLE NO. COMPARABLE NO. COMPARABLE NO.
DESCRIPTION DESCRIPTION +( )$ Adjust.–DESCRIPTION +( )$ Adjust.–DESCRIPTION +( )$ Adjust.–
Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths Total Bdrms Baths
Sq. Ft.Sq. Ft.Sq. Ft.Sq. Ft.
+–+–+–
$
$$
$
$
$
$
$
$
$
$
$
$
$
Address
Proximity to Subject
Sales Price
Price/Gross Living Area
Data and/or
Verification Sources
VALUE ADJUSTMENTS
Sales or Financing
Concessions
Date of Sale/Time
Location
Leasehold/Fee Simple
Site
View
Design and Appeal
Quality of Construction
Age
Condition
Above Grade
Room Count
Gross Living Area
Basement & Finished
Rooms Below Grade
Functional Utility
Heating/Cooling
Energy Efficient Items
Garage/Carport
Porch, Patio, Deck,
Fireplace(s), etc.
Fence, Pool, etc.
Net Adj. (total)
Adjusted Sales Price
of Comparable
Date, Price and Data
Source for prior sales
within year of appraisal
C O M M E N T S
Comments:
Market Data Analysis 6-93
6027 W Broadway
AP90224
Form UADDEFINE1A - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
File No.
UNIFORM APPRAISAL DATASET (UAD) DEFINITIONS ADDENDUM
(Source: Fannie Mae UAD Appendix D: UAD Field-Specific Standardization Requirements)
Condition Ratings and Definitions
C1
The improvements have been recently constructed and have not been previously occupied. The entire structure and all components are new
and the dwelling features no physical depreciation.
Note: Newly constructed improvements that feature recycled or previously used materials and/or components can be considered new dwellings
provided that the dwelling is placed on a 100 percent new foundation and the recycled materials and the recycled components have been
rehabilitated/remanufactured into like-new condition. Improvements that have not been previously occupied are not considered “new” if they
have any significant physical depreciation (that is, newly constructed dwellings that have been vacant for an extended period of time without
adequate maintenance or upkeep).
C2
The improvements feature no deferred maintenance, little or no physical depreciation, and require no repairs. Virtually all building components
are new or have been recently repaired, refinished, or rehabilitated. All outdated components and finishes have been updated and/or replaced
with components that meet current standards. Dwellings in this category are either almost new or have been recently completely renovated and
are similar in condition to new construction.
Note: The improvements represent a relatively new property that is well maintained with no deferred maintenance and little or no physical
depreciation, or an older property that has been recently completely renovated.
C3
The improvements are well maintained and feature limited physical depreciation due to normal wear and tear. Some components, but not every
major building component, may be updated or recently rehabilitated. The structure has been well maintained.
Note: The improvement is in its first-cycle of replacing short-lived building components (appliances, floor coverings, HVAC, etc.) and is
being well maintained. Its estimated effective age is less than its actual age. It also may reflect a property in which the majority of
short-lived building components have been replaced but not to the level of a complete renovation.
C4
The improvements feature some minor deferred maintenance and physical deterioration due to normal wear and tear. The dwelling has been
adequately maintained and requires only minimal repairs to building components/mechanical systems and cosmetic repairs. All major building
components have been adequately maintained and are functionally adequate.
Note: The estimated effective age may be close to or equal to its actual age. It reflects a property in which some of the short-lived building
components have been replaced, and some short-lived building components are at or near the end of their physical life expectancy; however,
they still function adequately. Most minor repairs have been addressed on an ongoing basis resulting in an adequately maintained property.
C5
The improvements feature obvious deferred maintenance and are in need of some significant repairs. Some building components need repairs,
rehabilitation, or updating. The functional utility and overall livability is somewhat diminished due to condition, but the dwelling remains
useable and functional as a residence.
Note: Some significant repairs are needed to the improvements due to the lack of adequate maintenance. It reflects a property in which many
of its short-lived building components are at the end of or have exceeded their physical life expectancy but remain functional.
C6
The improvements have substantial damage or deferred maintenance with deficiencies or defects that are severe enough to affect the safety,
soundness, or structural integrity of the improvements. The improvements are in need of substantial repairs and rehabilitation, including many
or most major components.
Note: Substantial repairs are needed to the improvements due to the lack of adequate maintenance or property damage. It reflects a property
with conditions severe enough to affect the safety, soundness, or structural integrity of the improvements.
Quality Ratings and Definitions
Q1
Dwellings with this quality rating are usually unique structures that are individually designed by an architect for a specified user. Such
residences typically are constructed from detailed architectural plans and specifications and feature an exceptionally high level of workmanship
and exceptionally high-grade materials throughout the interior and exterior of the structure. The design features exceptionally high-quality
exterior refinements and ornamentation, and exceptionally high-quality interior refinements. The workmanship, materials, and finishes
throughout the dwelling are of exceptionally high quality.
Q2
Dwellings with this quality rating are often custom designed for construction on an individual property owner’s site. However, dwellings in
this quality grade are also found in high-quality tract developments featuring residence constructed from individual plans or from highly
modified or upgraded plans. The design features detailed, high quality exterior ornamentation, high-quality interior refinements, and detail. The
workmanship, materials, and finishes throughout the dwelling are generally of high or very high quality.
UAD Version 9/2011 (Updated 1/2014)
Form UADDEFINE1A - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
UNIFORM APPRAISAL DATASET (UAD) DEFINITIONS ADDENDUM
(Source: Fannie Mae UAD Appendix D: UAD Field-Specific Standardization Requirements)
Quality Ratings and Definitions (continued)
Q3
Dwellings with this quality rating are residences of higher quality built from individual or readily available designer plans in above-standard
residential tract developments or on an individual property owner’s site. The design includes significant exterior ornamentation and interiors
that are well finished. The workmanship exceeds acceptable standards and many materials and finishes throughout the dwelling have been
upgraded from “stock” standards.
Q4
Dwellings with this quality rating meet or exceed the requirements of applicable building codes. Standard or modified standard building plans
are utilized and the design includes adequate fenestration and some exterior ornamentation and interior refinements. Materials, workmanship,
finish, and equipment are of stock or builder grade and may feature some upgrades.
Q5
Dwellings with this quality rating feature economy of construction and basic functionality as main considerations. Such dwellings feature a
plain design using readily available or basic floor plans featuring minimal fenestration and basic finishes with minimal exterior ornamentation
and limited interior detail. These dwellings meet minimum building codes and are constructed with inexpensive, stock materials
with limited refinements and upgrades.
Q6
Dwellings with this quality rating are of basic quality and lower cost; some may not be suitable for year-round occupancy. Such dwellings
are often built with simple plans or without plans, often utilizing the lowest quality building materials. Such dwellings are often built or
expanded by persons who are professionally unskilled or possess only minimal construction skills. Electrical, plumbing, and other mechanical
systems and equipment may be minimal or non-existent. Older dwellings may feature one or more substandard or non-conforming additions
to the original structure
Definitions of Not Updated, Updated, and Remodeled
Not Updated
Little or no updating or modernization. This description includes, but is not limited to, new homes.
Residential properties of fifteen years of age or less often reflect an original condition with no updating, if no major
components have been replaced or updated. Those over fifteen years of age are also considered not updated if the
appliances, fixtures, and finishes are predominantly dated. An area that is ‘Not Updated’ may still be well maintained
and fully functional, and this rating does not necessarily imply deferred maintenance or physical/functional deterioration.
Updated
The area of the home has been modified to meet current market expectations. These modifications
are limited in terms of both scope and cost.
An updated area of the home should have an improved look and feel, or functional utility. Changes that constitute
updates include refurbishment and/or replacing components to meet existing market expectations. Updates do not
include significant alterations to the existing structure.
Remodeled
Significant finish and/or structural changes have been made that increase utility and appeal through
complete replacement and/or expansion.
A remodeled area reflects fundamental changes that include multiple alterations. These alterations may include
some or all of the following: replacement of a major component (cabinet(s), bathtub, or bathroom tile), relocation
of plumbing/gas fixtures/appliances, significant structural alterations (relocating walls, and/or the addition of)
square footage). This would include a complete gutting and rebuild.
Explanation of Bathroom Count
Three-quarter baths are counted as a full bath in all cases. Quarter baths (baths that feature only a toilet) are not
included in the bathroom count. The number of full and half baths is reported by separating the two values using a
period, where the full bath count is represented to the left of the period and the half bath count is represented to the
right of the period.
Example:
3.2 indicates three full baths and two half baths.
UAD Version 9/2011 (Updated 1/2014)
Form UADDEFINE1A - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
UNIFORM APPRAISAL DATASET (UAD) DEFINITIONS ADDENDUM
(Source: Fannie Mae UAD Appendix D: UAD Field-Specific Standardization Requirements)
Abbreviations Used in Data Standardization Text
Abbreviation Full Name Fields Where This Abbreviation May Appear
A Adverse Location & View
ac Acres Area, Site
AdjPrk Adjacent to Park Location
AdjPwr Adjacent to Power Lines Location
ArmLth Arms Length Sale Sale or Financing Concessions
AT Attached Structure Design (Style)
B Beneficial Location & View
ba Bathroom(s)Basement & Finished Rooms Below Grade
br Bedroom Basement & Finished Rooms Below Grade
BsyRd Busy Road Location
c Contracted Date Date of Sale/Time
Cash Cash Sale or Financing Concessions
Comm Commercial Influence Location
Conv Conventional Sale or Financing Concessions
cp Carport Garage/Carport
CrtOrd Court Ordered Sale Sale or Financing Concessions
CtySky City View Skyline View View
CtyStr City Street View View
cv Covered Garage/Carport
DOM Days On Market Data Sources
DT Detached Structure Design (Style)
dw Driveway Garage/Carport
e Expiration Date Date of Sale/Time
Estate Estate Sale Sale or Financing Concessions
FHA Federal Housing Authority Sale or Financing Concessions
g Garage Garage/Carport
ga Attached Garage Garage/Carport
gbi Built-in Garage Garage/Carport
gd Detached Garage Garage/Carport
GlfCse Golf Course Location
Glfvw Golf Course View View
GR Garden Design (Style)
HR High Rise Design (Style)
in Interior Only Stairs Basement & Finished Rooms Below Grade
Ind Industrial Location & View
Listing Listing Sale or Financing Concessions
Lndfl Landfill Location
LtdSght Limited Sight View
MR Mid-rise Design (Style)
Mtn Mountain View View
N Neutral Location & View
NonArm Non-Arms Length Sale Sale or Financing Concessions
o Other Basement & Finished Rooms Below Grade
O Other Design (Style)
op Open Garage/Carport
Prk Park View View
Pstrl Pastoral View View
PwrLn Power Lines View
PubTrn Public Transportation Location
Relo Relocation Sale Sale or Financing Concessions
REO REO Sale Sale or Financing Concessions
Res Residential Location & View
RH USDA - Rural Housing Sale or Financing Concessions
rr Recreational (Rec) Room Basement & Finished Rooms Below Grade
RT Row or Townhouse Design (Style)
s Settlement Date Date of Sale/Time
SD Semi-detached Structure Design (Style)
Short Short Sale Sale or Financing Concessions
sf Square Feet Area, Site, Basement
sqm Square Meters Area, Site
Unk Unknown Date of Sale/Time
VA Veterans Administration Sale or Financing Concessions
w Withdrawn Date Date of Sale/Time
wo Walk Out Basement Basement & Finished Rooms Below Grade
Woods Woods View View
Wtr Water View View
WtrFr Water Frontage Location
wu Walk Up Basement Basement & Finished Rooms Below Grade
UAD Version 9/2011 (Updated 1/2014)
Twelve Month Listing History of Subject Property
An extensive search of the subject property was completed and there were no listings of the subject in the previous
twelve months.
Sources used were Hennepin County Records and Northstar Multiple Listing Service.
Neighborhood Description
The subject property is located in the north section of the City of New Hope MN within the County of Hennepin. The
immediate neighborhood consists primarily of detached single family homes all that generally conform with one
another in style, size and price range. Along with commercial, condominiums and apartment buildings.
All neighborhood conveniences including shopping public schools, parks and highway access are within reasonable
distances. There has traditionally been an average demand for housing in this neighborhood. The City of Brooklyn
Park is adjacent to the subject neighborhood to the north and the City of Crystal is adjacent to the subject
neighborhood to the east.
Subjects neighborhood is mainly a residential neighborhood with easy access to other suburban areas via State
Highway 169/Interstate 694, CR 9/Hwy 100 and connecting to other main arteries.
No adverse conditions were observed other than typical external commercial and busy roads.
Subject Site
The subject is an interior site that is typical in parcel size of the neighborhood. The subject is located on a busier
street to its front of W Broadway Avenue, commercial to its front and a condominium complex to the rear with a
parking lot associated. The topography is generally level from the front to the rear and does not allow for a walkout
basement. There is a dirt driveway that is entered from the busier street of W Broadway Avenue at the front to the
detached garage. The subject views commercial to the front, the condominium complex/parking lot/garage to the
rear beyond a fence with some mature trees, and detached single family homes on both sides.
There are no apparent easements or encroachments, other than typical utility easements.
In making this appraisal report, we are not aware of any testing for the existence of presence of radon, asbestos,
toxic substances, or other environmental pollutants in the building, land, or other surrounding areas, and that the
value assigned herein to the land and buildings assume that no such contaminants exist. We further recommend
that if you have knowledge of or reason to subject the existence of such pollutants, that you obtain an environmental
assessment of the property. To the best of our knowledge, there are no environmental risk factors which may affect
the real estate being appraised.
Additional Features
Exterior features include a chain link fence around much of the backyard.
The first level consists of a foyer, living room, kitchen, kitchen dining, full bath, and two bedrooms.
The basement is full, partially finished and is not a walkout. The basement consists of a family room, and a
laundry/utility room.
The appraiser manually measured the subject with 793 GLA. The most recent RMLS listing for the subject indicates
GLA of 840.
"This assignment was completed in full compliance with the appraisal independence regulations".
Highest and Best Use
The subject property is currently being utilized as a residential single family home and is being appraised as a
residential single family home.
Highest and best use for the subject property due to the commercial, and other external uncommon in a residential
single family home setting, may be of other uses unknown to the appraiser. This would require other market
analysis which was not part of the scope of work for this assignment and may require a higher appraiser designation
for commercial or other potential uses. Overall, highest and best use is present use.
Comments on Sale Comparison
Your appraiser has performed a detailed search for comparables to the subject in location, design, utility and appeal.
After extensive research, the comparable sales chosen were deemed the best available. The appraiser has
researched, reviewed, analyzed and documented the sales. The appraiser has made peer acceptable, unbiased,
and impartial adjustments for items of significant variation.
Search parameters included the following:
- location of being in the City of New Hope and within one mile from the subject property
- similar design style, age, condition and amenities
Supplemental Addendum
Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
AP90224
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Borrower
Lender/Client
Property Address
City County State Zip Code
File No.
- similar design style, age, condition and amenities
- similar parcel size and view.
The subject is a rambler designed style detached single family home. The subject is considered to be in overall
average condition with potential evidence of microbial in the basement concrete foundation. Four sold comparables
were utilized for the overall opinion of value and two active/pending listings were utilized for the current market
conditions. The overall values vary by more than 15% from the lowest to the highest comparable. This was due to
locating inferior and superior comparables for the grid. The additional fourth sold comparable was added to support
the opinion of value. Locating other comparables with external obsolescence was necessary to measure the overall
external for adjustments in the Sales Comparison Grid for the subject.
Recommended guidelines were exceeded and unavoidable considering net adjustments, GLA and distance from the
subject. Comparables #2, #3, #4 and #6 are from the neighboring City of Crystal and Comparable #5 is from the
neighboring City of Brooklyn Park. All comparables are within the same school district as the subject -
#281-Robbinsdale.
Comparables #1-3 were observed to be the most viable comparables to the subject, many of the search parameters,
and being close in proximity to the subject. These comparables are considered to be equal in weighing of the
comparables and in being most similar to the subject. Comparables #1 and #2 appear to be the most similar to the
subject with location/external, design style, GLA, and condition. All four sold comparables combined contributed to
the overall opinion of value.
Adjustments
TIME ADJUSTMENTS:
Comparables #1, #2 and #4 have been adjusted to current market conditions.
LOCATION:
The location adjustments, if any, considered accessibility, degree of conformity to adjoining properties, and the
overall appeal and marketability of the respective neighborhoods in relation to the subject. Comparable #1 is
slightly superior in location being located with a slight portion of the parcel adjacent to a golf course at its rear.
Comparable #3 is close in proximity of railroad tracks to the rear with some external associated but less than the
subject's. Comparables #4 and #6 both are located within residential neighborhoods and with no external.
SITE/VIEW:
Adjustments for site/view were made on the basis of lot value and the availability of public utilities rather than size
alone. Comparable #5 has a slightly larger parcel size to the subject. Comparable #1 has a superior golf course
view to the rear. Comparable #3 has superior wooded views. Comparables #4, #5 and #6 all have superior
residential views with no external.
DESIGN/STYLE:
Adjustments are made on the basis of interior and exterior appeal characteristics.
QUALITY/CONDITION:
Adjustments are made on the basis of MLS photos, an inspection from the street and the appraiser's experience and
judgment. Comparables #3 and #5 are observed to be superior in overall quality updates and condition per the
RMLS description and photos to the subject. Comparable #6 is observed to be inferior in quality updates and
condition per the RMLS description and photos. Comparable #4 is observed to be overall inferior in condition to the
subject per the RMLS description and photos.
ROOM COUNT/PROPERTY FEATURES:
Adjustment were made based on the price-point of the residence and on the appraiser's experience and judgment.
GLA 25.00, Finished basement sf 20.00, Walk-out 1000.00
ACTIVE LISTINGS:
The active listing were not adjusted based on the List to Sale Ratio estimated at 100%.
Assessed Market Value for Tax Purposes
According to Hennepin County Assessor Website records the subjects 2019 estimated assessed value is as follows:
Land $26,000, Building $67,000 with a total of $93,000.
Cost Approach
The cost approach has not been developed by the appraiser as an analysis to support the opinion of the property's
market value. The cost approach may not be a reliable indication of replacement or reproduction cost due to
changing costs of labor and materials, due to changing building codes, governmental regulations and requirements,
age of the subject and speculative depreciation.
Intended Used of Appraisal
The Intended User of this appraisal report is the Client only. The Intended Use is to evaluate the property that is the
subject of this appraisal for a full appraisal per the client request for market value only, subject to the stated Scope of
Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value.
No additional Intended Users are identified by the appraiser.
Scope of the Appraisal
Supplemental Addendum
Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
AP90224
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Borrower
Lender/Client
Property Address
City County State Zip Code
File No.
Scope of the Appraisal
The appraiser has viewed all readily accessible areas of the dwelling (and any other building structure located on the
property). This complete visual inspection is not intended to be the same depth or for the same purpose as a home
inspection. The appraiser has viewed the property solely for the valuation purposes and to observe property
characteristics that a typical purchaser would consider in their decision making process, as well as those items
outlined in the assumptions and limited conditions and certifications to this appraisal. Personal property or chattel
was not included in the appraised value.
Zoning
Comments about the zoning compliance of the subject property are intended by the appraiser to be in general terms.
A detailed analysis about every aspect of the subject property's improvements and the site characteristic with
respect to current zoning and building codes are beyond the scope of this assignment and was not performed. The
subject is considered to be in compliance with current zoning requirements in a general sense. It is a Single family
residential improvement in an area zoned for single family residential use.
Site Conditions
No obvious adverse site conditions or external factors were observed. Unless otherwise stated, typical drainage,
utility and right of way easements do not adversely impact value. However, the discovery of many site related issues
often require special expertise or data sources not customary or available in the performance of an appraisal. A
fundamental site analysis such as this is beyond the scope of this assignment. A detailed site or location survey,
which may reveal adverse easements, encroachments, zoning violations, environmental issues or other matters that
could impact the analysis or opinions, was not available to the appraiser.
Sketch
The subject's sketch is used for representational purposes only. The subject's sketch is to comply with The
American National Standard Institute process for calculating gross living area; however, due to the complexity of the
subject property and the limitations of the appraisal software it is not possible to develop a blue print of the subject
property. The subject's sketch is not intended to be used for any other purpose. The subject's sketch and actual
dimensions will very. The appraiser is not a structural engineer. If the lender requires a precise blue print of the
subject property it is the lenders responsibility to have the building surveyed by a structural engineer. See Statement
Of Assumptions And Limiting Conditions.
At the time of inspection, the appraiser physically measured the exterior/interior of the improvement. The appraiser's
measurements may differ from that of the assessor's and/or builder's documentation for the subject's gross living
area. The appraiser has no knowledge as to if the assessor physically measured the subject property or used
blueprint documentation for the gross living area. Since the appraiser physically measured the subject property on
the effective date of this report, the appraiser deems their calculations to be accurate and reliable. The subject's
sketch is used for representational purposes only. The subject's sketch is to comply with The American National
Standard Institute process for calculating gross living area; however, due to the complexity of the subject property,
and the limitations of the appraisal software, it is not possible to develop a blue print of the subject property. The
subject's sketch is not intended to be used for any other purpose. The subject's sketch and actual dimensions will
vary. The appraiser is not a structural engineer. If the lender requires a precise blue print of the subject property it is
the lenders responsibility to have the building surveyed by a structural engineer. See Statement Of Assumptions And
Limiting Conditions.
Land Value
Development of a land value has been attempted by the appraiser . The use of this data, in whole or in part, for other
purposes is not intended by the appraiser. Nothing set forth in the appraisal should be relied upon for the purpose of
determining the amount or type of insurance coverage to be placed on the subject property. The appraiser assumes
no liability for and does not guarantee that any insurable value estimate inferred from this report will result in the
subject property being fully insured for any loss that may be sustained. Further, the land value may not be reliable
indication of replacement or reproduction cost for any date other than the effective date of this appraisal due to
changing costs of labor and materials and due to changing building codes and governmental regulations and
requirements.
Supplemental Addendum
Form TADD - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
AP90224
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Borrower
Lender/Client
Property Address
City County State Zip Code
File No.
Form PICPIX.SR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Subject Photo Page
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Subject Front
Sales Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
6027 W Broadway Ave
N/A
793
5
2
1.0
A;BS/Com/Con/PL
A;Com/Con/PL
11,038 sf
Q5
67
Subject Rear
Subject Street
Borrower
Lender/Client
Property Address
City County State Zip Code
Form PICSIX2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Photograph Addendum
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Living Room Kitchen
Foyer Bathroom
Bedroom Bedroom
Borrower
Lender/Client
Property Address
City County State Zip Code
Form PICSIX2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Photograph Addendum
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Dining Basement Family
Basement Laundry HVAC
Electrical Panel Garage
Borrower
Lender/Client
Property Address
City County State Zip Code
Form PICSIX2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Photograph Addendum
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Rear Entrance Backyard
View to the Rear Beyond Fence of
Condominium Buildings/Parking Lot
Front/Side
Potential Microbial in Basement Concrete
Foundation
Potential Microbial in Basement Concrete
Foundation
Borrower
Lender/Client
Property Address
City County State Zip Code
Form PICSIX2 - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Photograph Addendum
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Commercial at Front
Borrower
Lender/Client
Property Address
City County State Zip Code
Form PICPIX.CR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Comparable Photo Page
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Comparable 1
Prox. to Subject
Sale Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
7911 59th Ave N
0.38 miles SW
167,500
995
4
2
1.0
B;Res/GC
B;Res/GC
10125 sf
Q5
63
Comparable 2
Prox. to Subject
Sale Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
5900 Elmhurst Ave
0.57 miles E
146,500
746
4
2
1.0
A;Airport/BsR
A;BsR/Eql
12353 sf
Q5
66
Comparable 3
Prox. to Subject
Sale Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
6817 52nd Ave N
1.12 miles SE
192,000
900
4
2
1.0
A;RR
B;Woods
6023 sf
Q5
65
Borrower
Lender/Client
Property Address
City County State Zip Code
Form PICPIX.CR - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Comparable Photo Page
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Comparable 4
Prox. to Subject
Sale Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
6714 58th Ave N
0.51 miles SE
140,000
943
6
3
1.0
N;Res
N;Res
9382 sf
Q5
64
Comparable 5
Prox. to Subject
Sale Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
7105 Cartisian Ave
0.55 miles NE
195,000
962
5
3
1.0
B;Comm/BsR
N;Res
19602 sf
Q5
61
Comparable 6
Prox. to Subject
Sale Price
Gross Living Area
Total Rooms
Total Bedrooms
Total Bathrooms
Location
View
Site
Quality
Age
7624 59th Pl N
0.13 miles SW
179,000
875
5
3
1
N;Res
N;Res
10489 sf
Q5
68
Borrower
Lender/Client
Property Address
City County State Zip Code
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Location Map
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Borrower
Lender/Client
Property Address
City County State Zip Code
Form SKT.BLDSKI - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Building Sketch
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Borrower
Lender/Client
2
6
'
30.5'
2 6 '
30.5'
2
6
'
30.5'
2 6 '
30.5'
12.5'
1
7
'
12.5'
1 7 '
First Floor
Living
Foyer
Kitchen
Dining
Bath
Bedroom
Bedroom
Garage
Basement
Family
Unfinished
Utility
TOTAL Sketch by a la mode, inc.Area Calculations Summary
Living Area Calculation Details
First Floor 793 Sq ft 30.5 × 26 = 793
Total Living Area (Rounded):793 Sq ft
Non-living Area
1 Car Detached 212.5 Sq ft 17 × 12.5 = 212.5
Basement 793 Sq ft 30.5 × 26 = 793
Property Address
City County State Zip Code
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Aerial
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Borrower
Lender/Client
Property Address
City County State Zip Code
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Aerial
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Borrower
Lender/Client
Property Address
City County State Zip Code
zoning map
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Form MAP.LOC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Location Map
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
Borrower
Lender/Client
Property Address
City County State Zip Code
6027 W Broadway
AP90224
N/A
6027 W Broadway Ave
New Hope Hennepin MN 55428
City of New Hope
None.
None. Sources for data were from RMLS and Hennepin County
Assessor Website.
0-90
0-90
Jayne Preusse
06/18/2019
20559939
MN
08/31/2019
06/11/2019
Form ID14EC - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
Borrower
Lender/Client
USPAP Compliance Addendum
Loan #
File #
Property Address
City County State Zip Code
APPRAISAL AND REPORT IDENTIFICATION
This Appraisal Report is one of the following types:
Appraisal Report This report was prepared in accordance with the requirements of the Appraisal Report option of USPAP Standards Rule 2-2(a).
Restricted Appraisal Report This report was prepared in accordance with the requirements of the Restricted Appraisal Report option of USPAP Standards Rule 2-2(b). The
intended user of this report is limited to the identified client. This is a Restricted Appraisal Report and the rationale for how the appraiser arrived
at the opinions and conclusions set forth in the report may not be understood properly without the additional information in the appraiser's workfile.
ADDITIONAL CERTIFICATIONS
I certify that, to the best of my knowledge and belief:
The statements of fact contained in this report are true and correct.
The report analyses, opinions, and conclusions are limited only by the reported assumptions and are my personal, impartial, and unbiased professional analyses,
opinions, and conclusions.
I have no (or the specified) present or prospective interest in the property that is the subject of this report and no (or specified) personal interest with respect to the
parties involved.
I have no bias with respect to the property that is the subject of this report or the parties involved with this assignment.
My engagement in this assignment was not contingent upon developing or reporting predetermined results.
My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause
of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of
this appraisal.
My analyses, opinions, and conclusions were developed and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.
This appraisal report was prepared in accordance with the requirements of Title XI of FIRREA and any implementing regulations.
PRIOR SERVICES
I have NOT performed services, as an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-year period
immediately preceding acceptance of this assignment.
I HAVE performed services, as an appraiser or in another capacity, regarding the property that is the subject of this report within the three-year period immediately
preceding acceptance of this assignment. Those services are described in the comments below.
PROPERTY INSPECTION
I have NOT made a personal inspection of the property that is the subject of this report.
I HAVE made a personal inspection of the property that is the subject of this report.
APPRAISAL ASSISTANCE
Unless otherwise noted, no one provided significant real property appraisal assistance to the person signing this certification. If anyone did provide significant assistance, they
are hereby identified along with a summary of the extent of the assistance provided in the report.
ADDITIONAL COMMENTS
Additional USPAP related issues requiring disclosure and/or any state mandated requirements:
MARKETING TIME AND EXPOSURE TIME FOR THE SUBJECT PROPERTY
A reasonable marketing time for the subject property is day(s)utilizing market conditions pertinent to the appraisal assignment.
A reasonable exposure time for the subject property is day(s).
APPRAISER SUPERVISORY APPRAISER (ONLY IF REQUIRED)
Signature
Name
Date of Signature
State Certification #
or State License #
State
Expiration Date of Certification or License
Effective Date of Appraisal
Signature
Name
Date of Signature
State Certification #
or State License #
State
Expiration Date of Certification or License
Supervisory Appraiser Inspection of Subject Property
Did Not Exterior-only from Street Interior and Exterior
USPAP Compliance Addendum 2014 Page 1 of 1
Appraisal License
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE
E & O Insurance
Form SCNLGL - "TOTAL" appraisal software by a la mode, inc. - 1-800-ALAMODE