Imp. Proj. #600
4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
TOO: 612-531-5109
City Hall Fax: 612-531-5136
Police Fax: 612-531-5174
Public Works Fax: 612-533-7650
Fire Dep't. Fax: 612-531-5175
NOTICE OF AMENDMENT TO HOUSING IMPROVEMENT
SPECIAL ASSESSMENT FEE FOR SANDPIPER COVE
HOUSING IMPROVEMENT AREA
(IMPROVEMENT PROJECT NO. 600)
Please take notice that on Monday, November 9, 1998, the New Hope City Council
adopted Resolution No. 98-170, "A Resolution Amending Resolution No. 98-50
Establishing Special Assessment Fee for the Sandpiper Cove Housing Improvement
Area". The said resolution has resulted in a reduction of the special assessment fee
from $16,667.00 per unit to $15,756.00 per unit. The revised annual fee per housing unit
is $1,604.82 based on a per annum interest rate of 8% with a 20 year term. The
reduction is based on final improvement costs of $567,228.00 which include a City
administrative fee.
The fee may be prepaid without interest until November 30, 1998. If only a portion of the.
fee is prepaid, the prepayment amount must be at least 25% of the total fee per unit, or
at least $3,939.00. If it is not prepaid, the fee will be payable as a special assessment in
equal installments over 20 years with the first installment payable in calendar year 1999.
In subsequent years, the principal balance remaining may be paid to the Finance
Director or Assessment Clerk at any time prior to November 15 of any year.
This notice is provided pursuant to Section 2.05 of Resolution No. 98-50.
Please call Gail Van Krevelen, Special Assessment Clerk, at 531-5132, if you have any
questions regarding prepayment of the fee.
Dated: November 10, 1998.
~~
Valerie Leone
City Clerk
Family Styled City" For Family living
AFFIDAVIT OF MAILING NOTICE
TO ROCKFORD OWNERS ASSOCIATION PROPERTY OWNERS
OF SANDPIPER COVE TOWNHOMES REGARDING
SANDPIPER COVE HOUSING IMPROVEMENT
FEE RESOLUTION NO. 98-50
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) ss
CITY OF NEW HOPE )
I, the undersigned being the duly qualified City Clerk of the City of New
Hope, Minnesota, hereby attest and certify that:
On March 30, 1998, acting on behalf of the said City, I deposited in the
United States mail at New Hope, Minnesota, copies of the attached notice regarding
the Sandpiper Cove Housing Improvement Fee. The notices were mailed first class
with postage thereon fully prepaid (mailing list attached).
There is a delivery service by United States mail between the place of
mailing and the places so addressed.
City Clerk
n/ ~. j)
~ct~
~tJbscribed and sworn to l:Yefore me
~is 30th day of March, 1998.
o' <0 JAYNE C. FERRY
l ~..\ NOTARY PUBLIC. MINNESOTA
:\..". . ':1 MY COMMISSION EXPIRES
$ " }~:?;:"~';i JANUARY 31, 2000
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NOTICE TO ROCKFORD OWNERS ASSOCIATION PROPERTY OWNERS
OF SANDPIPER COVE TOWNHOMESREGARDING
SANDPIPER COVE HOUSING IMPROVEMENT
FEE RESOLUTION NO. 98-50
...
On Monday, March 23, 1998, the City Council of the City of New Hope adopted
Resolution No. 98-50 imposing a housing improvement fee to finance housing
improvements within the Sandpiper Cove Townhome Housing Improvement
Area pursuant to Minn.Stat. SS 428A.11 through 428A.21 (the Housing
Improvement Act) and the Housing Improvement Ordinance No. 98-02 adopted
by the City Council at its January 12,1998 meeting.
Owners of more than 25 percent of the housing units in the Sandpiper Cove
Housing Improvement Area fiIed petitions with the City Clerk requesting a public
hearing regarding the fee resolution. The public hearing on this resolution was
held on March 23, 1998. The resolution was adopted after the close of the
public hearing on March 23, 1998.
Within 5 days after adoption of the resolution, the City is required under the
Housing Improvement Act to mail this notice to owners of each housing unit in
the affected area.
Following is a summary of Resolution No. 98-50 and some important information
about your rights as an owner of a housing unit in the Sandpiper Cove Housing
Improvement Area. This information is in addition to the notice previously mailed
to you regarding the summary of Ordinance No. 98-02.
SUMMARY OF RESOLUTION NO. 98-50
Fee Imposed: The resolution describes the total Housing Improvement Fee for
each housing unit, which is based on the total cost of the Improvements divided
by the number of housing units in the Sandpiper Cove Housing Improvement
Area as of the date the fee resolution was approved. The total cost of the
Housing Improvements is $600,000.00, including administrative costs. The total
fee per unit is $16,667.00.
Prepayment: The fee may be prepaid in whole or in part within 30 days after the
effective date of the resolution (see below for details). If only a portion of the fee
is prepaid, the prepayment amount must be at least 25% of the total fee per unit,
or at least $4,166.75.
Annual Payment: Housing unit owners who do not prepay the fee will be
required to pay the fee (or the balance after any partial prepayment) in equal
annual installments over 20 years, beginning in 1999. The fee will include simple
interest at an annual rate of 8%.
-
Reduction in Fee: The tot~l.fe.~ will not exceed the amount shown for each unit
in the resolution, but it may '66 reduced. Any reduction will be applied pro rata to
each unit, on the same basis that the original fee was determined. If the fee is
reduced after an owner has prepaid the fee, the owner will be reimbursed for the
amount of the reduction.
NOTICE OF RIGHT TO FILE OBJECTIONS
Housing unit owners subject to the Housing Improvement Fee have a right to
veto the fee resolution after it is adopted, if. owners of at least 35 percent of the
housing units within the Sandpiper Cove Housing Improvement Area file an
objection with the City Clerk before the effective date of the resolution. The key
dates are as follows:
Resolution adopted:
March 23, 1998
Effective date of Resolution:
(Deadline to file veto objections):
May 7, 1998
You will also receive a notice describing the total fee for your unit and details on
how to prepay the fee.
FURTHER INFORMATION
A copy of Resolution No. 98-50 is on file with the City Clerk for public inspection.
If you have questions about the Sandpiper Cove Housing Improvement Area,
contact the City Community Development Coordinator at 531-5119.
Dated: March 24, 1998.
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1 &-118-21 21 0087 18-118-2121 0088 18-118-21240116
JOYCE HOSKINS D. LEAF LIllY A BYKOV A
8953 42ND AVE N L. PENDZIMAS 8943 42ND AVE N
NEW HOPE MN 55427 8951 42ND AVE N NEW HOPE MN 55427
NEW HOPE MN 55427
18-118-21 240117 18-118-21240118 18-118-2124'0119
MARLENE STUDLlEN THOMAS BRAMWELL SHEILA RAWSKI-MARTIGNACCO
8941 42ND AVE N 8923 42ND AVE N 8921 42ND AVE N
NEW HOPE MN 55427 NEW HOPE MN 55427 NEW HOPE MN 55427
...
,- '0
18-118-21 240120 18-1'18-21 240121 18-118-21240122
E. JACOBSEN PEGGIE WHITE BRETT RIEWE
N. JACOBSEN RICHARD WHITE 8903 42ND AVE N
8913 42ND AVE N 8911 42ND AVE N NEW HOPE MN 55427
NEW HOPE MN 55427 NEW HOPE MN 55427
18-118-21 240123 18-118-21 240124 18-118-21 240125
SHERRY LAUMANN RAEANNE TILBURY LAMAR LAMBERT
8901 42ND AVE N 8931 42ND AVE N JULIANNE LAMBERT
NEW HOPE MN 55427 NEW HOPE MN 55427 8933 42ND AVE N
NEW HOPE MN 55427
18-118-21210089 18-118-21 21 0090 18-118-21240126
THERESA MILLER KAREN NUESSMEIER MAUREEN BROCHMAN
8963 42ND AVE N 8961 42ND AVE N 8819 42ND AVE N
NEW HOPE MN 55427 NEW HOPE MN 55427 NEW HOPE MN 55427
18-118-21240127 18-118-21 240128 18-118-21 240129
GERALDINE JENNINGS IRENE MAKI SHARYN HEDDING
8821 42ND AVE N 8823 42ND AVE N 8825 42ND AVE N
NEW HOPE MN 55427 NEW HOPE MN 55427 NEW HOPE MN 55427
18-118-21240130 18-118-21 240131 18-118-21240132
DONALD LACHMAN LINDA LUEDERS A. SMIRNOVA
LA VONNE LACHMAN 8855 42ND AVE N V. KORNILOV
8853 42ND AVE N NEW HOPE MN 55427 8857 42ND AVE N
NEW HOPE MN 55427 NEW HOPE MN 55427
18-118-21 240133 18-118-21 240134 18-118-21240135
GLORIA VUKMONICH ANN WALLIS KENNETH HABEL
8859 42ND AVE N 8883 42ND AVE N 8881 42ND AVE N
NEW HOPE MN 55427 NEW HOPE MN 55427 NEW HOPE MN 55427
18-118-21 240136 18-118-21240137 18-118-21 240138
LINDA SORENSEN JILL ROTSCHAFER PAMELA MEEHAN-KASTANOS
8879 42ND AVE N 8877 42ND AVE N 8869 42ND AVE N
NEW HOPE MN 55427 NEW HOPE MN 55427 NEW HOPE MN 55427
18-118-21 240139 18-118-21 240140 18-118-21240141
DAVID SCHULTE ANTHONY BALDA DIANE FAHERTY
KIM SCHUL TE 8845 42ND AVE N DIANE DENNY
8867 42ND AVE N NEW HOPE MN 55427 8843 42ND AVE N
NEW HOPE MN 55427 NEW HOPE MN 55427
1 &-118-21 240142
KNUTSON MORTGAGE CORP
LOAN #9761690
3001 METRO DR #400
BLOOMINGTON MN 55425
18-118-21 240143
JOSEPH DOLS
8833 42ND AVE N
NEW HOPE MN 55427
18-118-21210091
KIM KECKONEN
8811 42ND AVE N
NEW HOPE MN 55427
18-118-21 21 0092
SHARON GRABER
8809 42ND AVE N
NEW HOPE MN 55427
18-118-21210093
SCOTT TAYLOR
8807 42ND AVE N
NEW HOPE MN 55427
18-118-21210094
KIMBERLY JOHNSON
8805 42ND AVE N
NEW HOPE MN 55427
...
-,
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thereafter printed and published on every
to
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA)
ss.
CCJNTY OF HENNEPIN)
Dou~ Dance
, being duly sworn 011 an oath says that he/she is
the publisher or authorized agent and employee of the publisher of the newspaper known as
S n-Post
and has full knowledge of the facts which
are stated below.
(.A.) The newspaper has complied with all of the requirements constituting qualification as a
qualified newspaper, as provided by Minnesota Statute 331 A.02, 331 A.O?, and other
applicabie laws, as amended.
2,
(B) The
Notice of Publ.ic Hearine
3.
which is attached was cut from the columns of said newspaper, and was printed and
published once each \Neek. for
one
successive weeks; it was first published
on
"iednesday
the 11 day of
t~arch
, 19~, and was
,19_;
and
the
day of
Fee PerUnit:
and printed below is a copy of the lower case alphabet from ? to Z. both inclusive, which is
The
Accommodatio
large printed mate
5 working days in
to make arrangeme
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7.
hereby acknowledged as being the size and kind of type used in the composition and
5.
publication of the notice:
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Acknowledged before rr,e on this
VI~T;:IA H.;~';~U~L~E;E 1
NOTARY PUBLIC-MINNESOTA )
MY CCW.11SSI0N EXPIRES 1.31.2C-oO
RATE INFORMATION
(1) Lowest classified rate paid by commercial users
for comparable space
(2) Maximum rate allowed by law for the above matter
s
2.55 per line
s
6.20 Der line
(3) Rate actually charged ior the above matter
s
1.24 per line
AFFIDAVIT OF MAILING NOTICE
TO ROCKFORD OWNERS ASSOCIATION PROPERTY OWNERS
OF SANDPIPER COVE TOWNHOMES REGARDING
NOTICE OF PUBLIC HEARING
TO IMPOSE HOUSING IMPROVEMENT FEE
ON HOUSING UNITS WITHIN SANDPIPER COVE HOUSING IMPROVEMENT AREA
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) ss
CITY OF NEW HOPE )
I, the undersigned being the duly qualified City Clerk of the City of New
Hope, Minnesota, hereby attest and certify that:
On March 11, 1998, acting on behalf of the said City, I deposited in the
United States mail at New Hope, Minnesota, copies of the attached notice regarding
the Sandpiper Cove Housing Improvement Fee. The notices were mailed first class
with postage thereon fully prepaid (mailing list attached).
There is a delivery service by United States mail between the place of
mailing and the places so addressed.
City Clerk
>"}'1f'J 1 " C:, ~t.t.e.a-<)__e/!
Subscribed and sworn to bef re me
this 11 th day of March, 1998.
.f!&u1a C. dwza.~y
. NOTARY PUBLIC. MINNESOTA )
HENNEPIN COUNTY I
My commission expires 1-31-2000
NOTICE OF PUBLIC HEARING
TO IMPOSE HOUSING IMPROVEMENT FEE
ON HOUSING UNITS WITHIN SANDPIPER COVE
HOUSING IMPROVEMENT AREA AS REQUIRED
BY Minn.STAT. ~428A.14 AND NEW HOPE CODE ~1.805
City of New Hope. Minnesota
Notice is hereby given that the City Council of the City of New Hope, Minnesota,
will hold a public hearing on:
Monday, March 23, 1998 at 7:00 p.m.
in the City Council chambers in City Hall, 4401 Xylon Avenue North in the City of New
Hope, regarding adoption of a resolution imposing fees on housing units within the
Sandpiper Cove Housing Improvement Area for the Sandpiper Cove Townhome
Development under Minn.Stat. SS428A.11 through 428A.21 (Laws 1996) (the "Housing
Improvement Act").
Within the Sandpiper Cove Housing Improvement Area, the City proposes to facilitate
various improvements to the Sandpiper Cove Townhome Development. The
improvements will be financed by fees imposed on the owners of the units. Details
regarding the hearing, the improvements and the fees are described below.
1. Persons to be heard: All interested persons will be given an
opportunity to be heard at the hearing regarding the proposed housing
improvement fee.
2. Proposed Improvements: Replace windows, patio doors, overhead
garage doors, decks and stoops, roofs on two buildings, gutters and down
spouts, exterior lights, vinyl siding and accessories, garage mandoors, all in
accordance with the January 30, 1998 overview specifications prepared by
Construction Consulting & Inspections, Ltd.
3. Estimated Cost of Improvements to be paid in whole or in part
by housing improvement fee: $600,000.00, including administrative
costs and costs of issuing bonds to finance the improvements.
4. Amount to be charged against each housing unit: Following are
estimates of the fee to be imposed on housing units in the Sandpiper Cove
Housing Improvement Area:
Total Fee Per Unit:
Estimated Annual Fee Per Unit:
$16,667.00
$ 1,697.54
The total fee may be less, but will not be more, than the above amount. The fee
includes interest at an annual rate of 8%.
5. Owner's right to prepay: Housing unit owners may prepay all or a
portion of the Total Fee within 30 days after the effective date of the
resolution; provided that if only a portion is prepaid, the prepayment amount
must be at least 25% of the Total Fee. In the case of partial prepayment,
the unpaid balance will be imposed as an Annual Fee as described in
paragraph 6 below. After the 30 day period expires, the unpaid portion of
any Housing Improvement Fee and accrued interest shall be prepayable
only in the full amount.
6. Number of years the fee will be in effect: If owners do not prepay
the Total Fee, the Annual Fee including interest at 8% annually will be
imposed in equal installments over a 20-year period. The first installment
will be payable in 1999.
7. Compliance with Petition Requirement: Owners of more than 25
percent of the housing units that would be subject to the proposed fee in the
Sandpiper Cove Housing Improvement Area have filed a petition with the
City Clerk requesting a public hearing on the proposed fee, in accordance
with Minn.Stat. SS428A.12 and 428A.14 of the Housing Improvement Act.
8. The resolution imposing the proposed Housing Improvement Fee will
become effective 45 days after its adoption. If 35% or more of the unit
owners within the Sandpiper Cove Housing Improvement Area file a written
objection to the fee resolution with the City Clerk within said 45 day period,
the resolution imposing the fee will not become effective and the fee will not
be imposed.
For further information on the proposed housing improvement fee, contact the City
Community Development Director at City Hall, 531-5119.
Accommodations such as sign language interpreter or large printed materials are
available upon request at least 5 working days in advance. Please contact the City Clerk
to make arrangements (telephone 531-5117, TDD number 531-5109).
Dated the 5th day of March, 1998.
sf Valerie J. Leone
Valerie J. Leone
City Clerk
(Published in the New Hope-Golden Valley Sun-Post on the 11th day of March, 1998.)
Ow MINNESOTA
SUN
PUBUCA.llONS
Sun-<AJrrent Sun-Post Sun-Sailor
AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA)
ss.
COUNTY OF HENNEPIN)
Do u ~ Dan c e
, being duly sworn on an .oath says that he/she is
the publisher or authorized agent and employee of the publisher of the newspaper known as
Sun-post
, and has full knowledge of the facts which
are stated below.
(A) The newspaper has complied with all of the requirements constituting qualification as a
qualified newspaper, as provided by Minnesota Statute 331A.02, 331A.07, and other
applicable laws, as amended.
(B) The printed
Ordinance No. 98-02
which is attached was cut from the columns of said newspaper, and was printed and
published once each week, for
one
successive weeks; it was first published
on
wednesday
,19~ and was
the ~ day of
January
thereafter printed and published on every
to
and including
, the _ day of
,19_;
and printed below is a copy of the lower case alphabet from A to Z, both inclusive, which is
hereby acknowledged as being the size and kind of type used in the ,composition and
publication of the notice:
abcdefghijklmnopqrstuvwxyZ
BY:
/
-
~
;U~Sh~~
TITLE:
ACknotedged before me on this
- 21 dayO'{; Janu~rY .19~
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RATE INFORMATION
(1) Lowest classified rate paid by commercial users
for comparable space
(2) Maximum rate allowed by law for the above matter
s
2.55 per line
s
6.20 per line
(3) Rate actually charged for the above matter
s
1.24 per line
City of New Hope
(Official Publication)
ORDINANCE NO. 98-02
AN ORDINANCE ESTABUSHING
.A HOUSING IMPROVEMENT AREA
FOR THE SANDPIPER COVE TOWNHOME
DEVELOPMENT PURSUANT TO
MlNN STAT. CHAP. 428A
The City Council of the City of New Hope ordains
~. Section 1.80 "Sandniper Cove Hou,.;n" Im-
Ilrovement Ar<;:<!" of the New' Hope City Code is hereby
added to read as follows lows:
1,80 SandD,iDer Cove HOllsin", Improvement A~a
The C~ty of New Hope (hereafter City) hereby
establIshes pursuant to Minn Stat.; Chap.
428A a housing.improvement area over the
property commonly known as the Sandpiper
Cove Townhome development which is legally
described in Section 1.803 of this Code,
1.801 ~. The City hereby makes the follow.
ing recitals in support of its action to estab.
lish the herein housing improvement area;
1. The City is authorized under Minn, Stat.
**428A.1l through 428A,21 to establish
by ordinance housing improvement
areas within which housing improve-
ments are made or constructed and the
costs of ~heimprovements are paid in
whole or In part from fees imposed with-
in the area.
2. The City has detennined a need to es.
tablish the Sandpiper Cove Housing 1m.
provement Area as defined herein in
order to facilitate certain improvem~nts
to the property all in accordance with
the Housing Improvement Act.
3, The City has consulted with the Rock-
ford Owners Association and with resi-
dents in the Sandpiper Cove Housing
Improvement Area regarding the estab-
lishment of said housing improvement
area and the housing improvements to
be constructed and financed under this
ordinance. '
1:802 Eindin~. The City h8J'eby makes the follow-
ing findings in support of its action to estab-
lish the herein housing improvement area:
1. The City Council finds that, in accor-
dance with MJnn.. Stat. *428A,12, Own-
ers of at least 25 percent of the housing
units within the housing improvement
area have filed a petition with the City
Clerk requesting a public hearing re-
garding establishment of such housing
improvement area.
2. The City Council has on July 28, 1997
. and by adjournment thereafter conduct-
ed a public hearing, dulyn?ticed in ac-
cordance with Minn Stat. 1i428A:13,
subd. 2, regarding adoption ofthisordi.
nance at which all 'per~ons, including
owners of property within thj;.honci-;;
im>:rovement area were iitVen an .'lpoor-
tUnIty to be heard. /. ~
3. The Council finds'that, without estab.
lishment of the housing improvement
area, the Housing Improvements (as
hereinafter defined) could not be made by
the homeowners association for, or the
housing unit owners in, the Sandpiper
Cove Townhome development.
4. The Council further finds that designa-
tion of said housing improvement area is
needed to maintain and preserve the
housing units within such area.
~
1.803 HOllsin" Imnrovement Area Defined, The
Sandpiper Cove Housing Improvement
Area is hereby defined as that area of the
City legally deScribed as follows:
Lots 1 through 59, inclusive, Sandpiper
cove, all of which is according to the
plat(s) thereof on file and of record in the
office of the Registrar ofTi' :9S, Hennepin
County, Minnesota. Said housing ng im.
provement area consists l: 36 hOUSing
units as of the adoption of this section.
1.804 Housin'" Imnrovements Defined, For the pur-
poses of *H,110 through 1.809 of this Code, the
. term "Housing Improvements' shall mean
those improvements to the housi ng units,
garages, and common areas withi" Sandpiper
Cove Housine: Imnrovement Are;:! ~., ."Pt. out. in
I
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AFFIDAVIT OF MAILING NOTICE
TO ROCKFORD OWNERS ASSOCIATION PROPERTY OWNERS
OF SANDPIPER COVE TOWN HOMES REGARDING
SANDPIPER COVE HOUSING IMPROVEMENT
ORDINANCE NO. 98-02
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) ss
CITY OF NEW HOPE )
I, the undersigned being the duly qualified City Clerk of the City of New
Hope, Minnesota, hereby attest and certify that:
On January 15, 1998, acting on behalf of the said City, I deposited in the
United States mail at New Hope, Minnesota, copies of the attached notice regarding
the Sandpiper Cove Housing Improvement and a Summary of Ordinance No. 98-02.
The notices were mailed first class with postage thereon fully prepaid (mailing list
attached) .
There is a delivery service by United States mail between the place of
mailing and the places so addressed.
1(1JMLU~P ,
City Clerk
LV ~.
S scribed and sworn to before me
this 15th day of January, 1998.
NOTICE TO ROCKFORD OWNERS ASSOCIATION PROPERTY OWNERS
OFSANDPWERCOVETOWNHOMffiSREGARDWG
SANDPIPER COVE HOUSWG llv1PROVEMffiNT
ORDWANCE NO. 98-02
On Monday) January 12, 1998, the City Council of the City of New Hope adopted Ordinance No.
98-02 establishing Sandpiper Cove Townhome Housing Improvement Area pursuant to .Minn.
Stat. SS 428A.11 through 428A.21 (The Housing Improvement Act).
OVIIners of more than 25 percent of the housing units in the Sandpiper Cove Housing Improvement
Area fIled petitions with the City Clerk requesting a public hearing regarding the ordinance. The
public hearing on this ordinance was held on July 28, 1997 and January 12) 1998. The ordinance
was adopted after the close of the public hearing on January 12, 1998.
\Vithin 5 days after adoption of the ordinance, the City is required under the Housing
Improvement Act to mail this notice to owners of each housing unit in the affected area.
Following is a summary of Ordinance No. 98-02 and some important information about your rights
as an oVo,ner of a housing unit in the Sandpiper Cove Housing Improvement Area.
SlJMl\1ARY OF ORDINANCE NO. 98-02
Affected Area: The ordinance establishes the Sandpiper Cove Housing Improvement Area, which
is the area legally described as Lots 1 through 59, inclusive, Sandpiper Cove, according to the
recorded plat thereof, Hennepin County, 1vfinnesota.
Housin~ Imorovements: The ordinance specifies the "Housing Improvements" that will be
constructed in the Sandpiper Cove Housing Improvement Area and financed with the Housing
Improvement Fee. Those improvements are defmed as follows:
1. replacement of 234 window units;
2. replacement of 44 patio doors;
3. replacement of 36 overhead garage doors;
4. replacement of all rear decks and side entry stoops on 10 duplex buildings and
replacement of all rear decks and front entry stoops/decks on 4 fourplex
bUildings;
5. repair of all roofs and installation of new fiberglass reinforced shingles;
6. replacement of all gutters and downspouts;
7. replacement of all exterior lighting on the buildings;
8. replacement of all exterior siding, soffits and fascia including wrap of all windows and
doors, trim and ceilings in stoops;
9. replacement of 20 garage mandoors in the duplex buildings;
10. the above mentioned construction shall also include all incidental work and repairs to
finish the construction to industry standards and comply with all building codes
regardless of whether said incidental work is described in this Code or in the December
23) 1997 Construction Consulting & Inspections, Ltd. Overview Specifications.
Housine ImDrovement Fee: The ordinance provides that the City may impose a fee on housing
units in an amount sufficient to produce revenues required to provide the Housing hnprovements.
The fee will be set by a separate City Council resolution after a noticed public hearing which will
be held in the future, but the ordinance lays out the ground rules on how the fee will be determined.
Those rules are summarized as follows:
. The fee must be imposed based on the total cost of the Housing Improvements to be fmanced
with such fee, divided by the number of housing units in the Sandpiper Cove Housing
hnprovement Area as of the date of the fee resolution.
. The fee may be prepaid in whole or in part within 30 days after the effect~ve date of the
resolution setting the fee; provided that if only a portion is prepaid, the prepayment amount
must be at least 25% of the total fee for that unit.
. If the fee is not prepaid, it will be payable over a period of 20 years, with interest at a rate of 8%
per annum. However, the unpaid portion of the fee plus unpaid accrued interest is prepayable
any time after the 30 day period referred to above.
. The fee will be collected at the same time and in the same manner as property taxes.
. The total fee for each unit may not exceed the amount specified in the notice of public hearing
for the resolution imposing the fee.
Issuance of Bonds: The ordinance provides that the City may issue bonds under the Housing
hnprovement Act to fmance the Housing hnprovements. The Bonds may be issued any time after
the City has entered into a contract with Rockford Owners Association, Inc. for construction of the
improvements, and the 30-day period for prepayment of the Housing hnprovement Fee has elapsed.
Annual ReDort: The ordinance requires that Rockford Owners Association, Inc. submit audited
financial statements to the City each year while there are Bonds outstanding.
NOTICE OF RIGHT TO FILE OBJECTIONS
Housing unit owners subject to the Housing Improvement Fee have a right to veto the ordinance
and the fee resolution after it is adopted, if owners of at least 35 percent of the housing units within
the Sandpiper Cove Housing Improvement Area fIle an objection with the City Clerk before the
effective date of the ordinance or the resolution. The key dates are as follows:
Ordinance adopted:
January 12, 1998
Ordinance Published:
January 21, 1998
Effective date of Ordinance:
(Deadline to file veto objections):
lv1arch 9, 1998
If the ordinance is not vetoed, you will receive a notice indicating the public hearing date to
consider the resolution establishing the Housing Improvement fee against your housing unit. You
will also receive a notice describing the total fee for your unit, your right to veto the fee and
procedures for doing so and details on how to prepay the fee if the fee resolution is not vetoed.
FURTHER INFORMATION
A copy of Ordinance No. 98-02 is on file with the City Clerk for public inspection. If you
have questions about the Sandpiper Cove Housing Improvement Area, contact the City Community
Development Coordinator at 531-5119.
Dated: January 15
,1998.
c: \wordlcnh\sandoioer,not
Anthony Balda
8845 42nd Avenue North
New Hope, MN 55427
Thomas Bramwell
8923 42nd Avenue North
New Hope, MN 55427
Joe Dols
8833 42nd Avenue North
New Hope, MN 55427
Daniel Faherty
8843 42nd Avenue North
New Hope, MN 55427
L-?C,/L)~
Kenneth Habel
8881 42nd Avenue North
New Hope, MN 55427
1=an4~'
8877 42nd Avenue North
New Hope, MN 55427
Joyce Hoskins
8953 42nd Avenue North
New Hope, MN 55427
-Gflfisti11crraesers-~-
8819 42nd Avenue North
New Hope, MN 55427
Geri Jennings
8821 42nd Avenue North
New Hope, MN 55427
Kimberly Johnson
8805 42nd Avenue North
New Hope, MN 55427
Kim/Stephen Keckonen
8811 42nd Avenue North
New Hope, MN 55427
V. Kornilov/A. Smirnova
8857 42nd Avenue North
New Hope, MN 55427
Sherry Lee Laumann
8901 42nd Avenue North
New Hope, MN 55427
Daniel Leaf
8951 42nd Avenue North
New Hope, MN 55427
Linda/Dirk Lueders
8855 42nd Avenue North
New Hope, MN 55427
Dawn Lundmark
8835 42nd Avenue North
New Hope, MN 55427
Sheila/Peter Martignacco
8921 42nd Avenue North
New Hope, MN 55427
Theresa Miller
8963 42nd Avenue North
New Hope, MN 55427
Brett Riewe
8903 42nd Avenue North
New Hope, MN 55427
David/Kim Schulte
8867 42nd Avenue North
New Hope, MN 55427
Liliya Bykova
8943 42nd Avenue North
New Hope, MN 55427
Sharon Graber
8809 42nd Avenue North
New Hope, MN 55427
Sharyn Hedding
8825 42nd Avenue North
New Hope, MN 55427
Earl/Nelva Jacoqsen
8913 42nd Avenue North
New Hope, MN 55427
Pamela Kastanos
8869 42nd Avenue North
New Hope, MN 55427
Donald Lachman
8853 42nd Avenue North
New Hope, MN 55427
~
_"'/' "Ii
v"
_Kowentill
8933 42nd Avenue North
New Hope, MN 55427
Irene Maki
8823 42nd Avenue North
New Hope, MN 55427
Karen Nuessmeier
8961 42nd Avenue North
New Hope, MN 55427
Mar~Snyaer-
8807 42nd Avenue North
New Hope, MN 55427
Linda Sorensen
8879 42nd Avenue North
New HC!Je, MN 55427
Marlene'Studlien
8941 42nd Avenue North
New Hope, MN 55427
Raeanne Tilbury
8931 42nd Avenue North
New Hope, MN 55427
Gloria Vukmonich
8859 42nd Avenue North
New Hope, MN 55427
Ann M. Wallis
8883 42nd Avenue North
New Hope, MN 55427
Richard/Peggie White
8911 42nd Avenue North
New Hope, MN 55427
Ms. Jill Rotschafer
8877 42nd Avenue North
New Hope, MN 55427
Ms. Maureen Brochman
8819 42nd Avenue North
New Hope; MN 55427
LaMar and Julianne Lambert
893342nd Avenue North
New Hope, MN 55427
Mr. Scott Taylor
8807 42nd Avenue North
New Hope, ~~ 55427
STEVEN A. SONDRALL
MICHAEL R. LAFLEUR
MARTIN p, MALECHA
WILLIAM C, STRAIT
CORRICK & SONDRALL, P.A.
ATTORNEYS AT LAW
Edinburgh Executive Office Plaza
8525 Edinbrook Crossing
Suite #203
Brooklyn Park, Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 425-5867
January 14, 1998
Valerie Leone
New Hope City Clerk
4401 Xylon Avenue North
New Hope, MN 55428
~
RE: Sandpiper Cove Housing
Improvement Ordinance No,
Our File: 99.49802
9R-O?
Dear Valerie:
r -\ -:", (' !'\.(\" \f\ 'D r\eJ::::o.
\-. 'E' -/ ~t-~ ,,~\ \, \:-" /l"~
c~s:;< -rOP C\\~
LEGALASS:STAHT
SHARON D. DERBY
Please find enclosed the notice t.hat must be mailed to all home
m^mers in the Sandpi per Cove Hous i ng Improvement Ar-ea, As we
discussed, t.his notice must be mailed within 5 days from the
adoption of the ordinance. The ordinance was adopted on January
12th so the notice should be mailed on or before Friday January
16th,
Also, please prepare for me your usual affidavit. of mailing and
place it in my box, Cont.act me if you have any questions regarding
the enclosed notice or mailing procedure
Very truly yours,
Steven A, Sondrall
z1w
cc: Ki rk McDonald
AFFIDAVIT OF MAILING NOTICE
FOR PUBLIC HEARING ON ESTABLISHMENT OF A
HOUSING IMPROVEMENT AREA FOR THE
SANDPIPER COVE TOWNHOME DEVELOPMENT
STATE OF MINNESOTA)
)ss
COUNTY OF HENNEPIN)
Valerie J. Leone, first being duly sworn, on oath deposes and says that she is and
was on July 15, 1997, the duly qualified City Clerk of the City of New Hope,
Minnesota; that on said date she mailed a copy of the attached notice of hearing
authorizing the establishment of a housing improvement area for the Sandpiper Cove
town home development, to the owner of each parcel within the development by
enclosing a copy of said public hearing notice in each envelope addressed to each
such owner, and depositing such envelope in the United States mail with postage
fully prepaid thereon; that the names and addresses of such owners were those
appearing as such on the records of the County Treasurer of Hennepin as of the 30
days prior to adoption of the resolution providing for said hearing, except that the
names and addresses of owners of parcels not appearing on such records were
determined by reference to maps, plats, and other documents on file in the City Hall
of said City, and, to the extent found to be necessary, by reference to the records of
the City Assessor and the United States Post Office, the Minneapolis Suburban
Directory and the published listing of telephone service subscribers in the City.
IlLUW (1 ~~
Valerie J. Leone?!
City Clerk
NOTICE OF PUBLIC HEARING PER MINN. STAT.
g428A. 13 AUTHORIZING THE ESTABLISHMENT OF A
HOUSING IMPROVEMENT AREA FOR THE SANDPIPER
COVE TOWNHOME DEVELOPMENT
THE CITY OF NEW HOPE, MINNESOTA
Notice is hereby given that the City Council of the C~ty of
New Hope, Minnesota, will meet on the 28th day of July, 1997, at
7:00 o'clock p.m. at the City Hall, 4401 Xylon Avenue North, in
said City for the purpose of holding a pUblic hearing to consider
the establishment of a housing improvement area within the City of
New Hope as author i zed by M inn. Stat. 99 428A. 11 through 428A. 21
over the following described property (see map for boundaries of
improvement area):
Lots 1 through 59, Sandpiper Cove,
all of which is according to the plates) thereof on file
and of record in the office of the Registrar Of Titles,
Hennepin County, Minnesota.
A 11 persons own i ng hous i ng un its in the proposed area that
wou 1 d be subj ect to a fee for hous i ng imp rovements and other
interested persons will be given an opportunity to be heard and are
invited to appear at said hearing for the purpose of being heard
with respect to the establishment of the housing improvement area.
Accommodat ions such as sign 1 anguage interpreter or 1 arge
printed materials are available upon request at least 5 working
days in advance. Please contact the City Clerk to make
arrangements (telephone 531~5117, TOO number 531-5109).
Dated the 7th day of July, 1997.
sl Valerie J. Leone
Valerie J. Leone
City Clerk
(Published in the New Hope-Golden valley Sun-Post on the 16th day
of July, 1997.)
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STEVEN A. SONDRALL
MICHAEL R. LAFLEUR
MARTIN P. MALECHA
WILLIAM C. STRAIT*
*APPROVED ADR NEUTRAL
CORRICK & SONDRALL, P.A.
ATTORNEYS AT LAW
Edinburgh Executive Office Plaza
8525 Edinbrook Crossing
Suite #203
Brooklyn Park. Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 425-5867
,y
5
LEGAL ASSISTANT
SHARON D, DERBY
~ THIS COPY FOR
NOTICE OF PUBLIC HEARING PER MINN. STAT.
8428A.13 AUTHORIZING THE ESTABLISHMENT OF A
HOUSING IMPROVEMENT AREA FOR THE SANDPIPER
COVE TOWNHOME DEVELOPMENT
THE CITY OF NEW HOPE, MINNESOTA
Notice is hereby given that the City Council of the City of
New Hope, Minnesota, will meet on the 28th day of July, 1997, at
7:00 o'clock p.m. at the City Hall, 4401 Xylon Avenue North, in
said City for the purpose of holding a public hearing to consider
the establishment of a housing improvement area within the City of
New Hope as authorized by Minn. Stat. @s 428A.11 through 428A.21
over the following described property (see map for boundaries of
improvement area):
Lots 1 through 59, Sandpiper Cove,
all of which is according to the plates) thereof on file
and of record in the office of the Registrar Of Titles,
Hennepin County, Minnesota.
All pe rsons own i ng hous i ng un its in the proposed area that
wou 1 d be subj ect to a fee for hous i ng improvements and othe r
interested persons will be given an opportunity to be heard and are
invited to appear at said hearing for the purpose of being heard
with respect to the establishment of the housing improvement area.
Accommodat ions such as sign 1 anguage i nterp rete r
printed materials are avai lable upon request at least
days in advance. Please contact the City Clerk
arrangements (telephone 531-5117, TOO number 531-5109).
or 1 arge
5 working
to make
Dated the 7th day of Jul y, 1997.
sf Valerie J. Leone
Valerie J. Leone
City Clerk
(Published in the New Hope-Golden Valley Sun-Post on the 16th day
of July, 1997.)
Q~
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AFFIDAVIT OF PUBLICATION
STATE OF MINNESOTA)
ss.
COUNTY OF HENNEPIN)
Den i 5 L. M i n d a k . being duly sworn on an oath says that he/she is
the publisher or authorized agent and employee of the publisher of the newspaper known as
Sun - P 0 5 t . and has full knowledge of the facts
which are stated below.
(A) The newspaper has complied with all of the requirements constituting qualifICation as a
qualified newspaper, as provided by Minnesota Statue 331A.02, 331A.07, and other applicable
laws, as amended.
(B) The printed
Notice of Public HearinE
which is attached was cut from the columns of said newspaper, and was printed and published
once each week. for 0 n e successive weeks; it was first published
on Wed n e 5 day the ~ day of J u I y . 19-2.I, and was thereafter
printed and published on every
to and including
. the _ day of . 19~ and printed below is a copy of
the lower case alphabet from A to Z. both inclusive, which is hereby acknowledged as being the
. size and kind of type used in the composition and publication of the notice:
abcdefghijldmnopqrstuvwxy2:
BY:
TITLE:
Publi5her
Acknowledged before me on this /
16 day of J u ~ y
\\\ " {).
~ }, Q k_J- C~) '{ Ii "-
Notary Public (
. 19-2.L.
0/
/0J~ 0 U.JJ rr( )
RATE INFORMATION
(1) Lowest classified rate paid by commercial users
for comparable space
(2) Maximum rate allowed by law for the above matter
$
2.55 per line
$
6.20 per line
(3) Rate actually charged for the above matter
$
1.20 per line
f)=-::FF
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City of New Hope
<Offici,
NOTICE OF PUBLIC
~428A.13 AUTHORlZIN(
HOUSING IMPRO'
SANDPIPER COVE T'
THE CITY OF 1'.1
Notice is hereby given that the City Council of the eit
at 7:00 o'clock p.m, at the City Hall, 4401 Xylon Avenue
consider the establishment of a housing improvement '"
4281\.11 through 428A,21 over the following described pr
Lots 1 through 55, Sandpiper Cove,
all of which is according to the plat(s) thereof on file an
lvlinnesota.
All persons owning housing units in the proposed al
other interested persons will be given an opportunity to I
of being heard with respect to the establishment of the h
Accommodations such as sign language interpreter
working days in advance, Please contact the City Clerk to
Dated the 7th day of July, 1997.
ZONING DISTRICT MAP
erN of NEW '"'OPE
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COUNCIL
REQUEST FOR ACTION
Originating Department
Finance/Admin.
Approved for Agenda
Agenda Section
Consent
Larry Watts
By:
By:
6.11
1 2 - 1 4- 9 8
Item No.
RESOLUTION AMENDING RESOLU ION NO. 98-50 SECTION 2.03 REGARDING
SANDPIPER COVE HOUSING IMPROVEMENT AREA (IMPROVEMENT PROJECT NO.
600)
Resolution No. 98-50 was approved on March 23, 1998. In that resolution Section 2.03
dealt with the payments of the improvement, but did not specifically state the City's
intention of allowing property owners to pay the principal balance of the assessment
prior to expiration of the 20 year term. This issue, however, was properly addressed in
the notice that was mailed to the property owners.
Hennepin County requires that the resolution state very clearly whether early payoffs are
allowed. To comply with Hennepin County's directive, the City Attorney has expanded
Section 2.03 in the resolution to state "The property owner may at any time prior to
November 15 of any year pay to the County Auditor, City Finance Director or City
Assessment Clerk the entire principal amount of the assessment remaining due with
interest accrued to December 31 of the year in which said payment is made".
Staff recommends approval of the resolution.
MOTION BY
TO: (/!j;fJv(Jf, /Lb.J, 7,1- /! I
I
(aN;? /Y^'-____
SECOND BY
''i.JiyJ~A-
, U
RFA-OOl
CITY OF NEW HOPE
RESOLUTION NO. 98-181
RESOLUTION AMENDING RESOLUTION NO. 98-50 SECTION 2.03
REGARDING SANDPIPER COVE HOUSING IMPROVEMENT AREA
(IMPROVEMENT PROJECT NO. 600)
WHEREAS, on March 23, 1998, the New Hope City Council adopted Resolution No.
98-50 approving a housing improvement special assessment fee for the
Sandpiper Cove housing improvement area; and
WHEREAS, Section 2.03 of the resolution addressed prepayments of the improvement
fee but did not specifically address the fact that property owners could pay
the remaining principal balance prior to the 20-year term; and
WHEREAS, the City's intention is to accept payments of the improvement fee in a
manner similar to special assessments; and has advised affected property
owners of same.
NOW, THEREFORE, BE IT RESOLVED that the City Council approves amending
Resolution No. 98-50 by adding the following language to Section 2.03:
"The property owner may at any time prior to November 1 5 of any year pay
to the County Auditor, City Finance Director or City Assessment Clerk the
entire principal amount of the assessment remaining due with interest
accrued to December 31 of the year in which said payment is made".
Adopted by the City Council of the City of New Hope this 14th day of December, 1998.
91~
Mayor
Attest:
'tLuil~
City Clerk
CITY OF NEW HOPE
Memorandum
To: Hennepin County
From: Valerie Leone, City Clerk
Date: December 15, 1998
Subject: Amended Resolution - Sandpiper Cove Housing Improvement
On December 14,1998, the New Hope City Council authorized amending Resolution No. 98-50
by adding the following language to Section 2.03 of the resolution:
"The property owner may at any time prior to November 15 of any year pay to the County
Auditor, City Finance Director or City Assessment Clerk the entire principal amount of the
assessment remaining due with interest accrued to December 31 of the year in which said
payment is made".
Enclosed is a certified copy of the amended Resolution No. 98-50.
4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
TOO: 612-531-5109
City Hall Fax: 612-531-5136
Police Fax: 612-531-5174
Public Works Fax: 612-533-7650
Fire Dep't. Fax: 612-531-5175
STATE OF MINNESOT Al
COUNTY OF HENNEPIN) ss
CITY OF NEW HOPE )
1/ the undersigned/ being the duly qualified City Clerk of the City of New Hope/
Minnesota, hereby attest and certify that:
1. As such officer/ I have the legal custody of the original record from
which the attached resolution was transcribed.
2. I have carefully compared the attached resolution with the original
record of the meeting at which the resolution was acted upon.
3. I find the attached resolution to be a true, correct and complete copy of the
original:
RESOLUTION NO. 98-50
RESOLUTION APPROVING A HOUSING IMPROVEMENT
SPECIAL ASSESSMENT FEE FOR THE
SANDPIPER COVE HOUSING IMPROVEMENT AREA
PURSUANT TO MINN. STAT. !3428A.11 THROUGH 428A.21
(IMPROVEMENT PROJECT NO. 600)
4. I further certify that the affirmative vote on said resolution was 4 ayes/
o nayes/ and 1 absent/abstention.
5. Said meeting was duly held/ pursuant to call and notice thereof/ as
required by law / and a quorum was present.
WITNESS my hand officially as such Clerk and the seal of said City/ this 15th day of
December/ 1998.
ilrJ.A1/-IJt-m .
Valerie Leone/ City Clerk
Family Styled City~ For Family living
RESOLUTION NO. 98-50
RESOLUTION APPROVING A HOUSING IMPROVEMENT
SPECIAL ASSESSMENT FEE FOR THE SANDPIPER
COVE HOUSING IMPROVEMENT AREA PURSUANT
TO MINN.STAT. ~~428A.11 THROUGH 428A.21
City of New Hope, Minnesota
BE IT RESOLVED by the City of New Hope, Minnesota as follows:
Section 1. Recitals.
1.01 The City of New Hope ("City") is authorized under Minn.Stat.
SS428A.11 through 428A.21 (the "Housing Improvement Act") to establish by
ordinance a housing improvement area within which housing improvements are
made or constructed and the costs of the improvements are paid in whole or in part
from fees imposed within the area.
1.02 By Ordinance No. 98-02 adopted January 12, 1998 (the "Enabling
Ordinance"), the Council established the Sandpiper Cove Housing Improvement
Area in orderto facilitate certain improvements to property known as the "Sandpiper
Cove Townhome Development", all in accordance with the Housing Improvement
Act.
1.03 In accordance with Minn.Stat. S428A.12 ofthe Housing Improvement
Act, owners of at least 25 percent of the housing units within the Sandpiper Cove
Housing Improvement Area have filed a petition with the City Clerk requesting a
public hearing regarding imposition of a special assessment housing improvement
fee for the Sandpiper Cove Housing Improvement Area.
1.04 The Council has on March 23, 1998 conducted a public hearing, duly
notice in accordance with the Housing I mprovement Act, regarding adoption of this
resolution at which all persons, including owners of property within the Sandpiper
Cove Housing Improvement Area, were given an opportunity to be heard.
Prior to the date hereof, the Rockford Owners Association (the "Association") has
submitted to the City a financial plan prepared by Reserve Data Analysis, an
independent third party, acceptable to the City and the Association, that provides
for the Association to finance maintenance and operation of the common
elements in the Sandpiper Cove Townhome Development and a long-range plan
to conduct and finance capital improvements therein, all in accordance with
Minn.Stat. S428A.14 of the Housing Improvement Act.
1.06 For the purposes of this Resolution, the terms "Sandpiper Cove
Housing Improvement Area" and "Housing Improvements" have the meanings
provided in the Enabling Ordinance set out in New Hope Code SS1.803 and 1.804.
Section 2. Housing Improvement Fee Imposed.
2.01 The City hereby imposes a fee on each housing unit within the
Sandpiper Cove Housing Improvement Area (the "Housing Improvement Fee"), as
specified in Exhibit A attached hereto, which Housing Improvement Fee is imposed
on the basis of the total cost of the Housing Improvements to be financed by the
Housing I mprovement Fee divided by the number of housing units in the Sandpiper
Cove Housing Improvement Area as of the date of this Resolution.
2.02 The owner of any housing unit against which the Housing
Improvement Fee is imposed may, at any time within 30 days after the effective
date of this Resolution, pay all or a portion of the total Housing Improvement Fee
imposed against such housing unit as specified in Exhibit A hereto to the City
without interest thereon; provided that if only a portion is prepaid the prepayment
amount must be at least 25% of the total fee for that unit. Any Housing
Improvement Fee (or a portion thereof) not prepaid in accordance with this Section
shall be payable solely in accordance with Section 2.03 hereof.
2.03 If not prepaid in accordance with Section 2.02 hereof, the Housing
Improvement Fee (or a portion thereof) shall be payable in equal annual
installments extending over a period of 20 years, the first of the installments to be
payable in calendar year 1999, which annual payment shall be deemed to include
interest on unpaid Housing Improvement Fee from the date ofthis Resolution at an
8% annual interest rate to finance the Housing Improvements in accordance with
the Enabling Ordinance and the Housing Improvement Act. The annual payment
for each housing unit for which the Housing Improvement Fee has not been prepaid
is also stated on the attached Exhibit A to this Resolution in the City's official
records. The property owner may at any time prior to November 15 of any year pay
to the County Auditor, City Finance Director or City Assessment Clerk the entire
principal amount of the assessment remaining due with interest accrued to
December 31 of the year in which said payment is made.
2.04 The Housing Improvement Fee, unless prepaid in accordance with
Section 2.02 hereof, shall be payable at the same time and in the same manner as
provided for payment and collection of ad valorem taxes, as provided in Minn.Stat.
S428A.15 of the Housing Improvement Act.
2
2.05 The Housing Improvement Fee imposed against each housing unit
shall not exceed the amount specified in Exhibit A hereto; provided, however, that
the Housing Improvement Fee may be reduced at any time before issuance of the
Bonds, which reduction shall be applied pro rata to each housing unit's Housing
Improvement Fee on the basis described in Section 2.01 hereto, and further
provided that if any housing unit owners have prepaid the Housing Improvement
Fee prior to any reduction in that fee, the City shall promptly reimburse such
housing unit owner in the amount of the Fee, the City Clerk shall cause to be
prepared a revised copy of Exhibit A hereto, which shall be attached to the
Resolution in the City's official records and shall be promptly mailed to all housing
unit owners within the Sandpiper Cove Housing Improvement Area.
Section 3. Notice of Right to File Obiections.
3.01 Within five days after the adoption of this Resolution, the City Clerk is
authorized and directed to mail to the owner of each housing unit in the Sandpiper
Cove Housing Improvement Area a summary of this Resolution; notice that owners
subject to the Housing Improvement Fee have a right to veto this Resolution if
owners of at least 35% of the housing units within the Sandpiper Cove Housing
Improvement Area file an objection with the City Clerk before the effective date of
this Resolution, and notice that a copy ofthis Resolution is on file with the City Clerk
for public inspection.
Section 4. Effective Date.
2. This Resolution shall be effective 45 days after adoption hereof.
Section 5. Filing of Housing Improvement Fee.
5.01 By November 15, 1998, the City Clerk shall file a certified copy of this
Resolution together with a final update of Exhibit A hereto to the Hennepin County
Director of Taxation to be recorded on the property tax lists of the county.
Approved by the City Council of the City of New Hope this 23rd day of March,
1998.
#~
Attest: ~-'A/~L
Valerie Leone, City Clerk
W. Peter Enck, Mayor
~~......c::-.._
3
(REVISED)EXlllBIT A TO RESOLUTION 98-50
Total Fee Per Housing Unit:
Annual Fee Per Housing Unit:
$15,756.00
$ 1,604.82
-4-
GORDON L. JENSEN*
WILLIAM G. SWANSON
STEVEN A, SONDRALL
MARTIN p, MALECHA
C. ALDEN PEARSONt
OF COUNSEL
LORENS Q. BRYNESTAD
-Real Prop~I1Y Law Sptcialist
Cmilied By The
~finne50L1 Sr;lle Bar
Association
tQualilied ADR Neutral
JENSEN SWANSON & SONDRALL, P.A.
Attorneys At Law
8525 EDINBROOK CROSSING, STE. 201
BROOKL YN P ARK, MINNESOTA 55443-1999
TELEPHONE (612) 424-8811 . TELEFA,X (612) 493-5193
December 10, 1998
Larry Watts
Finance Director
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re: Revised Resolution 98-50/Sandpiper Cove Housing Improvement Assessment
Fee
Our File No.: 99.11155
Dear Larry:
Please find enclosed a revised copy of Resolution 98-50 entitled "A Resolution Approving
a Housing Improvement Special Assessment Fee for the Sandpiper Cove Housing
Improvement Area Pursuant to Minn. Stat. S 428A.11 through 428A.21." I have revised
Section 2.03 of the resolution to incorporate language allowing for prepayment of the
assessment in accordance with our telephone conversation on December 9, 1998.
Basically, the additional language in Section 2.03 is identical to the prepayment language
we use for special assessments under Chapter 429.
Also, I don't believe this revision needs to be approved by the Council. Basically, the
Council has already indicated its approval of its language in this Notice of Public Hearing
pursuant to which Resolution 98-50 was adopted. In that notice, there is a clear intent that
prepayment of these housing fees are acceptable.
Please contact me if you have any other questions or comments regarding this revision.
Very truly yours,
Steven A. Sondrall
New Hope City Attorney
JENSEN SWANSON & SONDRALL. P,A.
Enclosure
cc: Valerie Leone
P:\Altonley\SAS\L:I~rs\C.'1HIII.55.W3tt.sOI.llt.wpd
4401 Xylon Avenue North
New Hope,:Minnesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
TOO: 612-531-5109
City Hall Fax: 612-531-5136
Police Fax: 612-531-5174
Public Works Fax: 612-533-7650
Fire Dep't. Fax: 612-531-5175
November 13, 1998
Mr. Dan Leaf
Rockford Homeowners Association
8951 42nd Avenue North
New Hope, MN 55427
Subject:
Reduction of Assessment Fee for Sandpiper Cove Housing Improvement Area
Dear Dan:
This letter is to inform you that at the November 9 City Council meeting, the City Council approved a
Resolution Amending Resolution No. 98-50 Establishing Special Assessment Fee for the Sandpiper
Cove Housing Improvement Area. As you are aware, the original resolution established an annual
special assessment fee of $1,697.54 against each townhome unit within the complex or a total of
$16,667.00 per unit. The revised resolution reduces the annual special assessment fee to $1,604.82 per
townhome unit or a total of $15,756.00 per unit. The City has sent letters to all property owners with
details about the new assessment amount and pre-payment information.
If you have any questions, please contact me at 531-5119. Thanks again for your cooperation on this
project.
Sincerely,
~~\\\(~~t\
Kirk McDonald
Director of Community Development
Enclosure:
Revised Resolution
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Larry Watts, Director of Finance & Administration
Valerie Leone, City Clerk (Improvement Project No. 600)
Family Styled City. For Family living
COUNCIL
REQUEST FOR ACTION
Originating Department
Approved for Agenda
Agenda Section
Community Development
Consent
Item No.
n
Vi 11-09-98
By: " .
/
I
RESOLUTION AMENDING RESOLUTION NO. 98-50 ESTABLISHING SPECIAL ASSESSMENT FEE
FOR THE SANDPIPER COVE HOUSING IMPROVEMENT AREA (IMPROVEMENT PROJECT NO.
600)
ByKirk McDonald
6.10
The Sandpiper Cove townhome unit improvements have now been completed and all appropriate
approvals have been given by the Building Official. In March, the City Council adopted Resolution No.
98-50 establishing an annual special assessment fee of $1,697.54 against each townhome unit within
the complex ($16,667.00 total per unit). The assessment was based on estimated project cost of
$600,000.00. The resolution provides that the City shall reduce the special assessment fee if the total
actual cost of the project is less than $600,000.00, including a 15 percent administrative charge payable
to the City. The total project cost of the home improvements, including the 15 percent administrative
charge, was completed at a cost of $567,228.00. Therefore, the total assessment per housing unit
should be reduced to $15,756.00 per unit and the annual fee per housing unit should be $1,604.82
based on a per annum interest rate of eight percent with a 20-year term.
The City Attorney has prepared the enclosed resolution, which amends the previous resolution and
reduces the assessment. The Townhome Association has extended its appreciation to the City Council
for its support of this project. The project made significant improvements to the townhome complex and
the owners are very pleased with the results.
Staff recommends approval of the resolution.
MOTION BY fOl[ifv
v
TO: II f1IJ7"Yt /lJl!J CJX - 1'70
SECOND BY (~U)()}!.Jf0
RFA-OOl
GORDON L. JENSEN*
WILLIAM G, SWANSON
STEVEN A, SONDRALL
MICHAEL R. LAFLEUR
MARTIN p, MALECHA
BRETT A, PERRY*
C. ALDEN PEARSONt
OF COUNSEL
LORENS Q. BRYNESTAD
'R.a1 Proporty Law Specialist
C.rtified By The
Minnesota State Bar
Association
tQualitie1:i ADR Neutral
JENSEN SWANSON & SONDRALL, P.A.
Attorneys At Law
8525 EDINBROOK CROSSL"IG, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1999
TELEPHONE (612) 424-8811 . TELEFAX (612) 493-5193
November 5, 1998
Kirk McDonald
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE: Sandpiper Cove\ Resolution
Reducing Housing Improvement
Special Assessment Fee
Our File: 99.11155
Dear Kirk:
Please find enclosed proposed Resolution Amending Resolution No. 98-50
Establishing Special Assessment Fee For the Sandpiper Cove Housing Improvement
Area for consideration at the November 9, 1998 Council Meeting. Based on our
recent meeting with Rockford Owners Association we now have the final costs for
the housing improvements constructed at Sandpiper Cove. As you know, said costs
were less than we estimated, and as a result, the actual assessment to be certified to
the County should be reduced.
y
The enclosed resolution effects the reduction to the special assessment. The City
Clerk should attach a copy of the revised exhibit A to Resolution No. 98-50 and file
said Resolution with the County. Contact me if you have any other questions or
comments about the enclosed resolution.
Very......tl;llly yours,
( :
,-<:r
.__-f- <......~
Steven A. Sondrall
z: sast2
attachments
cc:
Valerie Leone /
Larry Watts
RESOLUTION NO. 98- 170
RESOLUTION AMENDING RESOLUTION
NO. 98-50 EST ABLISmNG SPECIAL
ASSESSMENT FEE FOR THE SANDPIPER
COVE HOUSING IMPROVEMENT AREA
BE IT RESOLVED by the City of New Hope, Minnesota as follows:
WHEREAS, The New Hope City Council at its March 23, 1998 meeting adopted
Resolution No. 98-50 establishing an annual special assessment fee of $1,697.54 against each
townhome unit within the Sandpiper Cove Townhome Development, a copy of which is attached
as Exhibit A; and
WHEREAS, Section 2.05 of Resolution No. 98-50 provides that the City shall reduce the
special assessment fee if the total actual cost of the housing improvement is less than $600,000.00
including a 15 % administrative charge payable to the City; and
WHEREAS, the actual cost of the home improvements including the City's 15%
administrative charge is $567,228.00, for the Sandpiper Cove Townhome Development; and
WHEREAS, based on said actual costs as referenced above, the total assessment per
housing unit should be $15,756.00 and the annual fee per housing unit should be $1,604.82 based
on a per annum interest rate of 8 % with a 20 year term and Exhibit A to Resolution No. 98-50
should be amended to indicate these amounts.
NOW, THEREFORE, BE IT FURTHERRESOL VED by the City Council ofthe City of New Hope,
that:
1. That Exhibit A to Resolution No. 98-50 shall be amended to indicate the total fee per
housing unit within the Sandpiper Cove Townhome Development shall be $15,756.00 and
the annual fee per housing unit shall be $1,604.82.
2. That the City Clerk shall within 5 days after the adoption of this resolution mail to the
owner of each housing unit within the Sandpiper Cove Townhome Development written
notice of the reduction of said fee and the owner's right to prepay said fee without interest
until November 30, 1998.
3. That the City Clerk shall file by November 15, 1998 a Certified Copy of Resolution No.
98-50 with a revised Exhibit A with the Hennepin County Recorder of Taxation to be
recorded on the property tax lists of the County.
-1-
Adopted by the City Council this 9thclay of November , 1998.
.-
:#~-A
W. Peter Enck, Mayor
Attest; ~~
Valerie Leone, City Clerk
P:\Anomey\Cnb Resolutions\resolution.amd.98.SQ. wpd
-2-
11/05/98 21:50
JS&S,ATTORNEYS 7 5315136
NO. 441 P006
..
~
RESO~UTION NO. 98-50
RESOLUTION APPROVING A HOUSING IMPROVEMENT
SPECIAL ~SSESSMENT FEE FOR THE SANDPIPER
COVE HOUSING IMPROVEMENT AREA PURSUANT
TO MINN.STAL ii428A.11 THROUGH 428A.21
City of New HODe, Minnesota
BE IT RESOLVED by the City of New Hope, Minnesota as follows:
Section 1. Recitals.
1.01 The City of New Hope CCity") is authorized under Minn.Stat.
gg428A.11 through 428A.21 (the "Housing Improvement Act") to establish by
ordinance a housing improvement area within which housing improvements are
made or constructed and the costs of the improvements are paid in whole or in
part from fees imposed within the area.
1.02 By Ordinance No, 98-02 adopted January 12, 1998 (the "Enabling
Ordinance"), the Council established the Sandpiper Cove Housing Improvement
Area in order to facilitate certain improvements to property known as the
"Sandpiper Cove Townhome Development", all in accordance with the Housing
Improvement Act.
,.
I
,
1,03 In accordance with Minn.Stat. g428A.12 of the Housing
Improvement Act, owners of at least 25 percent of the housing units within the
Sandpiper Cove Housing Improvement Area have flied a petition with the City
Clerk requesting a public hearing regarding imposition of a special assessment
housing improvement fee for the Sandpiper Cove Housing Improvement Area.
1.04 The Council has on March 23, 1998 conducted a public hearing,
' duly notice in accordance with the Housing Improvement Act, regarding adoption
of this resolution at which all persons, including owners of property within the
Sandpiper Cove Housing Improvement Area, were given an opportunity to be
heard.
Prior to the date hereof, the Rockford Owners Association (the wAssociation")
has submitted to the City a financial plan prepared by Reserve Data Analysis, an
independent third party, acceptable to the City and the Association, that provides
for the Association to finance maintenance and operation of the common
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JS&S,ATTORNEYS 7 5315136
NO.441 P007
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elements in the Sandpiper Cove Townhome Development and a long-range plan
to conduct and finance capital improvements therein, all in accordance with
Minn.Stat. S428A 14 of the Housing Improvement Act.
1_06 For the purposes of this Resolution, the terms "Sandpiper Cove
Housing Improvement Area" and "Housing Improvements" have the meanings
provided in the Enabling Ordinance set out in New HODe Code SS1.803 and
1.804.
Section 2. Housina Improvement Fee Imoosed.
2.01 The City hereby imposes a fee on each housing unit within the
Sandpiper Cove Housing Improvement Area (the "Housing Improvement Fee").
as specified in Exhibit A attached hereto, which Housing Improvement Fee is
imposed on the basis of the total cost of the Housing Improvements to be
financed by the Housing Improvement Fee divided by the number of housing
units in the Sandpiper Cove Housing Improvement Area as of the date of this
Resolution.
2_02 The owner of any housing unit against which the Housing
Improvement Fee is imposed may. at any time within 30 days after the effective
date of this Resolution, pay all or a portion of the total Housing Improvement Fee
imposed against such housing unit as specified in Exhibit A hereto to the City
without interest thereon; provided that if only a portion is prepaid the prepayment
amount must be at least 25% of the total fee for that unit. Any Housing
Improvement Fee (or a portion thereof) not prepaid in accordance with this
Section shall be payable solely in accordance with Section 2.03 hereof. '
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2.03 If not prepaid in accordance with Section 2.02 hereof, the Housing
Improvement Fee (or a portion thereof) shall be payable in equal annual
installments extending over a period of 20 years, the first of the installments to be
payable in calendar year 1999. which annual payment shall be deemed to
include interest on unpaid, Housing Improvement Fee from the date of this
Resolution at an 8% annual interest rate to finance the Housing Improvements in
accordance with the Enabling Ordinance and the Housing Improvement Act. The
annual payment for each housing unit for which the Housing Improvement Fee
has not been prepaid is also stated on the attached Exhibit A to this Resolution in
the City's official records.
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2.04. The Housing Improvement Fee, unless prepaId in accordance with
Section 2.02 hereof, shall be payable at the same time and in the same manner
as provided for payment and col/ection of ad valorem taxes, as provided in
Minn.Stat. S428A.15 of the Housing Improvement Act.
2
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11/05/98 21:51
JS&S,ATTORNEYS ~ 5315136
NO.441 P008
1
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2.-05' The Housing Improvement Fee imposed against each housing unit
shall not exceed the amount specified in Exhibit A hereto; provided, however.
that the Housing Improvement Fee may be reduced at any time before issuance
of the Bonds, which reduction shall be applied pro rata to each housing unit's
Housing Improvement Fee on the basis described in Section 2.01 hereto, and
further provided that if any housing unit owners have prepaid the Housing
Improvement Fee prior to any reduction in that feel the City shall promptly
reimburse such housing unit owner in the amount of the Fee. the City Clerk shall
cause to be prepared a revised copy of Exhibit A hereto, which shall be attached
to the Resolution in the City's official records and shall be promptly mailed to all
housing unit owners within the Sandpiper Cove Housing Improvement Area.
Section 3_ Notice of Right to File Objections.
3.01 Within fIVe days after the adoption of this Resolution, the City Clerk
is authorized and directed to mail to the owner of each housing unit in the
Sandpiper Cove Housing Improvement Area a summary of this Resolution:
notice that owners subject to the Housing Improvement Fee have a right to veto
this Resolution if owners of at least 35% of the housing units within the
Sandpiper Cove Housing Improvement Area file an objection with the City Clerk
before the effective date of this Resolution. and notice that a copy of this
Resolution is on file with the City Clerk for public inspection.
Section 4. Effective Date.
2.02 This Resolution shall be effective 45 days after adoption hereof.
Section 5. Filino of Housing Imorovement Fee.
5.01 By November 15. 1998, the City Clerk shall file a certified copy of
this Resolution together with a final update of Exhibit A hereto to the Hennepin
County Director of Taxation to be recorded on the property tax lists of the county.
Approved by the City Council of the City of New Hope this 23nj day of
March. 1998.
Allest: ~..~
Valerie Leone, City Clerk
_ ;7i.~__d
W. Peter Enck, Mayor
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11/05/98 21: 51
JS&S,RTTORNEYS ~ 5315136
NO.441 P009
EXHIBIT A TO RESOLUTION 98-JQ..
Total Fee Per Housing Unit:
$16,667.00
Annual fee per Housing Unit:
$ 1,697.54
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City of New Hope
Expenditure Report
Improvement Project No. 600-Sandpiper Cove
October 31, 1998
Expenditures
Columbus Exteriors
Construction Consulting
Final Coat Painting
Garage Door Store
Construct-All Corp
Gregory Construction
City Labor Pool Costs
Hause Construction
J errys Signs
Total Construction Costs
Administration Costs
Total Cost
Assessment
Assessment Per Unit Based
on 36 Units
Term
Interest Rate
Equal Payments
Total cost
$ 421,829.07
22,300.00
10,540.00
20,140.00
6,950.00
1,890.00
56.27
9,000.00
536.00
$ 493,241.34
73,986.20
$ 567,227.54
$ 567,228.00
15756.33333
$ 15,756
20 Years
8%
$ 1,604.82
$ 32,096.35
November 6, 1998
TO: New Hope City Council and Staff
FROM: Rockford Owners Association
We wish to thank you for all your help and support in helping us get our
much needed project done. This has been a six year long process from start to
finish. The city has been very helpful in arranging all the necessary steps to
get the financing for the project. Without your support the project would not
have been done. As anyone can see this project has turned a area of the city
from old to new looking and that is a benefit to everyone in the community.
The council and staff deserve a round of applause for taking an idea and
turning it into reality.
Thank You,
Rockford Owners Association
Daniel P Leaf, President
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05/15/98 16: 08
GoRDON L. leNSEN*
WlU.IAM G. SWANSON
S'nWEN A. SONDRAU.
MfOfAEL R.. LAFl.sUR
MAATII'I P. MAu3;HA
BIlE'IT A. PaRY*
C. ALDEN P1lAR$ONt
OF COUNSEL
LottENS Q. SRYN'ESTAIl
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JENSEN & SWANSON 7 612 531 5136
NO.383 P002
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JENSEN SWANSON & SONDRALL, P.A..
Attorneys At Law
8525 EDINBllOOK CROSSING, STE. 201
BROOla.YN PARK, MINNEsoTA 55443.1999
TELEPaoNE (6U) 424-8811 . TELEFAX (612) 493-5193
May 15, 1998
C{J)lPy
Mr. Dan Leaf
Rockford Homeowners Association
8951 4200. Avenue North
New Hope. Minnesota 55427
and
Mr. Peter Rawski
Rockford Homeowners Association
8921 42nd Avenue North
New Hope, Minnesota 55427
RE: Development Agreement between City of New Hope
and Rockford Owners Association
Our Fne No. 99.11155
Dear Dan and Peter:
This letter is in follow-up to the meeting we recently had concerning the Development
Agreement for the constmction improvements at Sandpiper Cove. The City will need the
following information from the Homeowners Association before any monies can be
disbursed for construction improvements:
1. A copy of all construction plans accepta~le to the City building official.
2. A copy of yOUX' contract with Construction Consulting and Inspections Limited,
and copies of any other construction contracts or subcootracts entered into by the
Association as requested by the City.
3. A Sworn Construction Statement executed by the Association and your consulting
engineer for all housing improvements showing esthnates of all anticipated
contractor's contracts or subcontracts for the housing improvements and the
anticipated amounts for each contract.
4. A total Project Cost Statement.
s.
Copies of any licenses or permits necessary to construct the housing
Unptovements .
135/15/98 16: 08
JENSEN & SWANSON ~ 612 531 5136
NO.383 P1303
May 15. 1998
Page 2
6. An accord 25 certificate indicating that all insurance coverages required by Article 5 of the
Development Agreement have been acquired by the Association.
7. A copy of your proposed Repair and Replacement Policy as required by Section 6.11 of the
Agreement.
8. Verification that you have retained and continue to retain an e:q>erienced professional property
manager as required by Section 6.15 of the Development Agreement.
9. Signed copies of the Development Agreement.
If you have any questions concerning these items, please do not hesitate to contact me.
Very truly yours,
Steven A. Sondrall
New Hope City Attorney
JENSEN SWANSON & SONDRALL, P.A.
SAS:sr
cc: Kirk McDonald, New Hope Community Development Coordinator
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COUNCIL
REQUEST FOR ACTION
Originating Department
Community Development
Approved for Agenda
.A1!enda Section
Publf6 Hearing
By: Kirk McDonald By:n-98 It~~l No.
PUBLIC HEARING: RESOLUTION APIROVING A HOUSING IMPROVEMENT SPECIAL
ASSESSMENT FEE FOR THE SANDPIPER COVE HOUSING IMPROVEMENT AREA PURSUANT TO
MINN. STAT. ~~428A.11 THROUGH 428A.21 (IMPROVEMENT PROJECT NO. 600)
At the January 12 Council meeting, the Council approved an Ordinance Establishing a Housing
Improvement Area for the Sandpiper Cove Townhome Development to provide financial assistance to
upgrade the exterior of the properties. Sandpiper Cove is a townhouse development located at 8101-
8953 42nd Avenue North that contains 36 owner-occupied townhomes. The complex is 20 years old and
there are significant exterior deterioration problems. The association approached the City for financial
assistance and the City Attorney assisted by introducing staff to new legislation that allows the City to
loan funds to the development and to assess benefiting properties for improvements. The ordinance was
subject to several conditions, including:
1. Association must provide the City with a financial plan indicating the Association will be able to
finance the construction, maintenance and operation of the improvements made to the common
elements of the property and a long-range plan for capital improvements;
2. The association must enter into a Development Agreement with the City;
3. A final determination regarding special assessment costs to each unit needs to be made and a
second public hearing held on the special assessment against each housing unit; and
4. The adoption of the January ordinance and any resolution imposing special assessments are both
subject to a veto by 35 percent of the homeowners within the Association within 45 days after the
adoption of the ordinance or resolution.
The 45-day period for the veto from homeowners expired on March 9 and no objections were received,
therefore, the ordinance establishing the Housing Improvement Area is effective.
This is the second public hearing in the process, the intent of which is to consider a Resolution
Approving a Housing Improvement Special Assessment Fee for the Sandpiper Cove Housing
Improvement Area Pursuant to Minn. Stat. ~~428A.11 Through 428A.21. The City Attorney has indicated
that prior to the adoption of this resolution, the City needs the following documents form the Rockford
Owners Association:
MOTION BY
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Administration:
Finance:
RFA-OOl
~quest for Action
Page 2
3-23-98
1. A Financial Plan prepared by Reserve Data Analysis indicating how the Association will finance
maintenance and operation of the common elements and its long-range plan to conduct and finance
capital improvements within the housing area; and
2. A signed Petition from at least 25 percent of the unit owners within the housing improvement area
requesting imposition of the housing improvement special assessment fee made reference to in the
proposed resolution enclosed.
Both of these documents have been received. Excerpts from the Financial Plan are attached to this
request and the entire document is available for review at the City Hall.
Per the correspondence from the City Attorney, this resolution will commit the City to assist the Rockford
Owners Association with its proposed improvements in the Sandpiper Cove Townhome Development.
The total cost of the project and loan will be $600,000. Basically, the City will be making a loan to each
unit owner within the development to facilitate construction of the proposed improvements as set out in
the overview specifications prepared by Construction Consulting and Inspections ltd. The City is
intending to finance approximately $500,000 of construction costs. The additional $100,000 is for
administrative costs associated with the project including legal and engineering costs and bond issuance
costs. At some future date, the City will issue bonds pursuant to the authority provided by the Housing
Improvement Act to reimburse itself for the construction improvements costs of this project. The City will
then be reimbursed for these costs by payment of an annual fee from each housing unit owner collected
along with real estate taxes. Therefore, the City's investment in this project will be secured by the equity
of the individual housing units. Per Exhibit A of the resolution, the total fee per housing unit will be
$16,667 ($600,000 + 36 units) and the annual fee will be $1,697.54 per unit.
Per the City Attorney, the Rockford Owners Association will be required to enter into a Development
Agreement which sets forth the terms and responsibilities of the Rockford Owners Association relative to
this project and the disbursement of funds by the City to finance the improvements. Enclosed is a draft
copy of this agreement for City Council review. This agreement will need to be entered into prior to
expiration of the 45-day veto period on the fee resolution by owners of the property units within the
improvement area. No funds will be disbursed until this agreement is signed and all conditions of the
agreement for disbursement of funds are met by the Association. Article III of the Development
Agreement sets forth the conditions which must be met by the Association before any funds are
provided to finance the improvements. Specifically, the Association will need to provide to the City (1) a
copy of approved Construction Plans; (2) copies of all contracts with consultants and contractors
retained by the Association to make the improvements; (3) a sworn construction statement; (4) a total
project cost statement; (5) copies of all necessary licenses and permits necessary to make the
improvements; (6) appropriate certifications that any request for payment relates only to performed work
or materials stored on site for which payment has not been previously made and that said work and
materials are necessary to complete the improvements; and (7) certifications by the Association that
there is sufficient money on deposit in all funds with the City to complete the project as proposed and
that the Association is not in default on any of the terms related to the project or this agreement.
The Development Agreement also requires the Association to indemnify and hold the City harmless for
any claims, damages or causes of action in any way connected with the project including reimbursement
of the City's attorney's fees and costs incurred by the City in defense of any claim or cause of action
against the City resulting from this project.
After the adoption of the enclosed resolution at the March 23, 1998, meeting, the City must prepare and
mail to all of the unit owners within the improvement area a summary of this resolution including the
following information;
1. A legal description of the property and units affected by the resolution;
2. The amount of the fee imposed on each housing unit by the resolution;
3. The right of the unit owners to prepay the fee and the procedure for doing so;
4. The annual payments imposed against each unit if not prepaid by the unit owners;
3. The right of the unit owners to prepay the fee and the procedure for doing so;
4. The annual payments imposed against each unit if not prepaid by the unit owners;
Request for Action Page 3
3-23-98
5. The fact that the improvement fee will not exceed the amount shown in the resolution, but it may be
reduced, and any reduction will be applied to each unit on a pro-rata basis in the same amount as
the original fee was determined; and
6. The effective date of the resolution and the right of the unit owners to file objections and veto the fee
prior to its effective date.
The City Attorney will be responsible for the preparation of the summary and will provide it to the City
Clerk in sufficient time so that it may be mailed to the appropriate unit owners within five days after the
adoption of this resolution.
Representatives from the Rockford Owners Association will be present at the meeting to further discuss
this project with and answer questions from the Council.
Staff recommend approval of the resolution.
Attachments: Public Hearing Notice
Resolution
City Attorney Correspondence
Petition from Property Owners
Specifications
Draft Development Agreement
Excerpts from Financial Plan
RESOl,.UTION NO. 98-50
RESOLUTION APPROVING A HOUSING IMPROVEMENT
SPECIAL ASSESSMENT FEE FOR THE SANDPIPER
COVE HOUSING IMPROVEMENT AREA PURSUANT
TO MINN.STAT. ~~428A.11 THROUGH 428A.21
City of New Hope. Minnesota
BE IT RESOLVED by the City of New Hope, Minnesota as follows:
Section 1. Recitals.
1.01 The City of New Hope ("City") is authorized under Minn.Stat.
SS428A.11 through 428A.21 (the "Housing Improvement Act") to establish by
ordinance a housing improvement area within which housing improvements are
made or constructed and the costs of the improvements are paid in whole or in
part from fees imposed within the area.
1.02 By Ordinance No. 98-02 adopted January 12, 1998 (the "Enabling
Ordinance"), the Council established the Sandpiper Cove Housing Improvement
Area in order to facilitate certain improvements to property known as the
"Sandpiper Cove Townhome Development", all in accordance with the Housing
Improvement Act.
1.03 In accordance with Minn.Stat. S428A.12 of the Housing
Improvement Act, owners of at least 25 percent of the housing units within the
Sandpiper Cove Housing Improvement Area have filed a petition with the City
Clerk requesting a public hearing regarding imposition of a special assessment
housing improvement fee for the Sandpiper Cove Housing Improvement Area.
1.04 The Council has on March 23, 1998 conducted a public hearing,
duly notice in accordance with the Housing Improvement Act, regarding adoption
of this resolution at which all persons, including owners of property within the
Sandpiper Cove Housing Improvement Area, were given an opportunity to be
heard.
Prior to the date hereof, the Rockford Owners Association (the "Association")
has submitted to the City a financial plan prepared by Reserve Data Analysis, an
independent third party, acceptable to the City and the Association, that provides
for the Association to finance maintenance and operation of the common
elements in the Sandpiper Cove Townhome Development and a long-range plan
to conduct and finance capital improvements therein, all in accordance with
Minn.Stat. S428A.14 of the Housing Improvement Act.
1.06 For the purposes of this Resolution, the terms "Sandpiper Cove
Housing Improvement Area" and "Housing Improvements" have the meanings
provided in the Enabling Ordinance set out in New Hope Code SS1.803 and
1.804.
Section 2. Housing Improvement Fee Imposed.
2.01 The City hereby imposes a fee on each housing unit within the
Sandpiper Cove Housing Improvement Area (the "Housing Improvement Fee"),
as specified in Exhibit A attached hereto, which Housing Improvement Fee is
imposed on the basis of the total cost of the Housing Improvements to be
financed by the Housing Improvement Fee divided by the number of housing
units in the Sandpiper Cove Housing Improvement Area as of the date of this
Resolution.
2.02 The owner of any housing unit against which the Housing
Improvement Fee is imposed may, at any time within 30 days after the effective
date of this Resolution, pay all or a portion of the total Housing Improvement Fee
imposed against such housing unit as specified in Exhibit A hereto to the City
without interest thereon; provided that if only a portion is prepaid the prepayment
amount must be at least 25% of the total fee for that unit. Any Housing
Improvement Fee (or a portion thereof) not prepaid in accordance with this
Section shall be payable solely in accordance with Section 2.03 hereof.
2.03 If not prepaid in accordance with Section 2.02 hereof, the Housing
Improvement Fee (or a portion thereof) shall be payable in equal annual
installments extending over a period of 20 years, the first of the installments to be
payable in calendar year 1999, which annual payment shall be deemed to
include interest on unpaid Housing Improvement Fee from the date of this
Resolution at an 8% annual interest rate to finance the Housing Improvements in
accordance with the Enabling Ordinance and the Housing Improvement Act. The
annual payment for each housing unit for which the Housing Improvement Fee
has not been prepaid is also stated on the attached Exhibit A to this Resolution in
the City's official records.
2.04 The Housing Improvement Fee, unless prepaid in accordance with
Section 2.02 hereof, shall be payable at the same time and in the same manner
as provided for payment and collection of ad valorem taxes, as provided in
Minn.Stat. S428A.15 of the Housing Improvement Act.
2
2.05 The Housing Improvement Fee imposed against each housing unit
shall not exceed the amount specified in Exhibit A hereto; provided, however,
that the Housing Improvement Fee may be reduced at any time before issuance
of the Bonds, which reduction shall be applied pro rata to each housing unit's
Housing Improvement Fee on the basis described in Section 2.01 hereto, and
further provided that if any housing unit owners have prepaid the Housing
Improvement Fee prior to any reduction in that fee, the City shall promptly
reimburse such housing unit owner in the amount of the Fee, the City Clerk shall
cause to be prepared a revised copy of Exhibit A hereto, which shall be attached
to the Resolution in the City's official records and shall be promptly mailed to all
housing unit owners within the Sandpiper Cove Housing Improvement Area.
Section 3. Notice of Right to File Objections.
3.01 Within five days after the adoption of this Resolution, the City Clerk
is authorized and directed to mail to the owner of each housing unit in the
Sandpiper Cove Housing Improvement Area a summary of this Resolution;
notice that owners subject to the Housing Improvement Fee have a right to veto
this Resolution if owners of at least 35% of the housing units within the
Sandpiper Cove Housing Improvement Area file an objection with the City Clerk
before the effective date of this Resolution, and notice that a copy of this
Resolution is on file with the City Clerk for public inspection.
Section 4. Effective Date.
2.02 This Resolution shall be effective 45 days after adoption hereof.
Section 5. Filing of Housing Improvement Fee.
5.01 By November 15, 1998, the City Clerk shall file a certified copy of
this Resolution together with a final update of Exhibit A hereto to the Hennepin
County Director of Taxation to be recorded on the property tax lists of the county.
Approved by the City Council of the City of New Hope this 23rd day of
March, 1998.
'7
Attest ~A{!;.~
Valerie Leone, City Clerk
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W. Peter Enck, Mayor
c:lword\cnhlreso.sc
3
EXHIBIT A TO RESOLUTION 98-.22..
Total Fee Per Housing Unit:
$16,667.00
$ 1,697.54
Annual fee per Housing Unit:
4
NOTICE OF PUBLIC HEARING
TO IMPOSE HOUSING IMPROVEMENT FEE
ON HOUSING UNITS WITHIN SANDPIPER COVE
HOUSING IMPROVEMENT AREA AS REQUIRED
BY Minn.STAT. ~428A.14 AND NEW HOPE CODE ~1.805
City of New Hope, Minnesota
Notice is hereby given that the City Councif of the City of New Hope, Minnesota,
will hold a public hearing on:
Monday, March 23,1998 at 7:00 p.m.
in the City Council chambers in City Hall, 4401 Xylon Avenue North in the City of New
Hope, regarding adoption of a resolution imposing fees on housing units within the
Sandpiper Cove Housing Improvement Area for the Sandpiper Cove Townhome
Development under Minn.Stat. SS428A.11 through 428A.21 (Laws 1996) (the "Housing
Improvement Act").
Within the Sandpiper Cove Housing Improvement Area, the City proposes to facilitate
various improvements to the Sandpiper Cove Townhome Development. The
improvements will be financed by fees imposed on the owners of the units. Details
regarding the hearing, the improvements and the fees are described below.
1. Persons to be heard: All interested persons will be given an
opportunity to be heard at the hearing regarding the proposed housing
improvement fee.
2. Proposed Improvements: Replace windows, patio doors, overhead
garage doors, decks and stoops, roofs on two buildings, gutters and down
spouts, exterior lights, vinyl siding and accessories, garage mandoors, all in
accordance with the January 30, 1998 overview specifications prepared by
Construction Consulting & Inspections, Ltd.
3. Estimated Cost of Improvements to be paid in whole or in part
by housing improvement fee: $600,000.00, including administrative
costs and costs of issuing bonds to finance the improvements.
4. Amount to be charged against each housing unit: Following are
estimates of the fee to be imposed on housing units in the Sandpiper Cove
Housing Improvement Area:
Total Fee Per Unit:
Estimated Annual Fee Per Unit:
$16,667.00
$ 1,697.54
...
The total fee may be less, but will not be more, than the above amount. The fee
includes interest at an annual rate of 8%.
5. Owner's right to prepay: Housing unit owners may prepay all or a
portion of the Total Fee within 30 days after the effective date of the
resolution; provided that if only a portion is prepaid, the prepayment amount
must be at least 25% of the Total Fee. In the case of partial prepayment,
the unpaid balance will be imposeq as an Annual Fee as described in
paragraph 6 below. After the 30 day period expires, the unpaid portion of
any Housing Improvement Fee and accrued interest shall be prepayable
only in the full amount.
6. Number of years the fee will be in effect: If owners do not prepay
the Total Fee, the Annual Fee including interest at 8% annually will be
imposed in equal installments over a 20-year period. The first installment
will be payable in 1999.
7. Compliance with Petition Requirement: Owners of more than 25
percent of the housing units that would be subject to the proposed fee in thE:
Sandpiper Cove Housing Improvement Area have filed a petition with the
City Clerk requesting a public hearing on the proposed fee, in accordance
with Minn.Stat. SS428A.12 and 428A.14 of the Housing Improvement Act.
8. The resolution imposing the proposed Housing Improvement Fee will
become effective 45 days after its adoption. If 35% or more of the unit
owners within the Sandpiper Cove Housing Improvement Area file a written
objection to the fee resolution with the City Clerk within said 45 day period,
the resolution imposing the fee will not become effective and the fee will not
be imposed.
For further information on the proposed housing improvement fee, contact the City
Community Development Director at City Hall, 531-5119.
Accommodations such as sign language interpreter or large printed materials are
available upon request at least 5 working days in advance. Please contact the City Clerk
to make arrangements (telephone 531-5117, TDD number 531-5109).
Dated the 5th day of March, 1998.
sf Valerie J. Leone
Valerie J. Leone
City Clerk
(Published in the New Hope-Golden Valley Sun-Post on the 11th day of March, 1998.)
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STEVEN A. SONDHALL
MICHAEL R. LAFLEUR
MARTIN p, MALECHA
WILLIAM C. STRAIT*
CORRICK & SONDRALL, P.A.
ATTORNEYS AT LAW
Edinburgh Executive Office Plaza
8525 Edinbrook Crossing
Suite #203
Brooklyn Park. Minnesota 55443
TELEPHONE (612) 425-5671
Ftu<(612)425-5867
LEGAL ASSISTANT
SHARON D. DERBY
*OUAUFIED ADA NEUTRAL
March 13, 1998
Kirk McDonald
Director of Community Development
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE: Fee Resolution for Sandpiper Cove Housing Improvement Area
Our File No: 99.11155
Dear Kirk:
Please find enclosed for consideration at the March 23, 1998 Council meeting a
proposed Resolution Approving a Housing Improvement Special Assessment
Fee for the Sandpiper Cove Housing Improvement Area pursuant to Minn.Stat.
S9428A.11 through 428A.21.
Prior to the adoption of this Resolution, we need. the following documents from
the Rockford Owners Association:
1 . A Financial Plan prepared by Reserve Data Analysis indicating how
the Association will finance maintenance and operation of the
common elements and its long range plan to conduct and finance
capital improvements within the housing area; and
2. A signed Petition from at least 25% of the unit owners within the
housing improvement area requesting imposition of the housing
improvement special assessment fee made reference to in the
proposed Resolution enclosed.
Without these documents, the Council will not be able to adopt the proposed
Resolution, therefore it is imperative for the Rockford Owners Association to
provide these documents if it wishes to maintain its time schedule for the
construction of the improvements.
As we discussed, this Resolution will commit the City to assist the Rockford
Owners Association with its proposed improvements in the Sandpiper Cove
Townhome Development. Basically, the City will be making a loan to each unit
Kirk McDonald
March 13, 1998
Page 2
owner within the development to facilitate construction of the proposed
improvements as set out in the overview specifications prepared by Construction
Consulting and Inspections, Ltd. We are intending to finance approximately
$500,000 of construction costs. The additional $100,000 is for administrative
costs associated with the project including legal and engineering costs and bond
issuance costs. It is my understanding that at some future date the City will issue
bonds, pursuant to the authority provided by the Housing Improvement Act, to
reimburse itself for the construction improvement costs of this project. The City
will then be reimbursed for these costs by payment of an annual fee from each
housing unit owner collected along with real estate taxes. Therefore, the City's
investment in this project will be secured by the equity, if any, of the individual
housing units. Please be advised that there has been no analysis done bv our
office with respect to whether there is sufficient eauity in any of the units to .
secure payment of the proposed housing improvement fees in the event of a
default bv an individual unit owner.
Also, the Rockford Owners Association will be required to enter into a
Development Agreement which sets forth the terms and responsibilities of the
Rockford Owners Association relative to this project and the disbursement of
funds by the City to finance the improvements. Please find enclosed a draft copy
of this agreement for staff and City Council review as well. This agreement will
need to be entered into prior to expiration of the 45-day veto period on the fee
resolution by owners of the property units within the improvement area. No funds
will be disbursed until this agreement is signed and all conditions of the
agreement for disbursement of funds are met by the Association. Basically,
Article 11\ of the Development Agreement sets forth the conditions which must be
met by the Association before any funds are provided to finance the
improvements. Specifically, the Association will need to provide to the City (1) a
copy of approved Construction Plans; (2) copies of all contracts with consultants
and contractors retained by the Association to make the improvements; (3) a
sworn construction statement; (4) a total project cost statement; (5) copies of all
necessary licenses and permits necessary to make the improvements; (6)
appropriate certifications that any request for payment relates only to performed
work or materials stored on site for which payment has not been previously made
and that said work and materials is necessary to complete the improvements;
and (7) certifications by the Association that there is sufficient money on deposit
in all funds with the City to complete the project as proposed and that the
Association is not in default on any of the terms related to the project or this
agreement.
".
Kirk McDonald
March 13, 1998
Page 3
The Development Agreement also requires the Association to indemnify and hold
the City harmless for any claims, damages or causes of action in any way
connected with the project including reimbursement of the City's attorney's fees
and costs incurred by the City in defense of any claim or cause of action against
the City resulting from this project.
Also note that after the adoption of the enclosed Resolution at the March 23,
1998 meeting, the City must prepare and mail to all of the unit owners within the
improvement area a summary of this Resolution including the following
information:
1 . A legal description of the property and units affected by the
Resolution;
2. The amount of the fee imposed on each housing unit by the '
Resolution;
3. The right of the unit owners to prepay the fee and the procedure for
doing so;
4. The annual payments imposed against each unit if not prepaid by
the unit owners;
5. The fact that that improvement fee will not exceed the amount
shown in the Resolution, but it may be reduced, and any reduction
will be applied to each unit on a pro-rata basis in the same amount
as the original fee was determined; and
6. The effective date of the Resolution and the right of the unit owners
to file objections and veto the fee prior to its effective date.
I will be responsible for the preparation of the summary and will provide it to the
City Clerk in sufficient time so it may be mailed to the appropriate unit owners
within 5 days after the adoption of this Resolution.
If you have any further questions or comments regarding this matter, please do
not hesitate to contact me.
V~t~ly yours,
'~
-...-. ,- '.-..-
Steven A. Sondrall
s1f3
Enclosure
cc: Daniel J. Donahue, City Manager
Valerie Leone, City Clerk
...
4'
::,
"
PETITION REQUESTING IMPOSITION OF
HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE
PURSUANT TO MINN. STAT. 99428A.12 AND 428A.14
We, the undersigned members of the Rockford Homeowners Association and fee owners of the
following units with the Sandpiper Cove Townhome Improvement Area, hereby petition the City of New
Hope for a public hearing to consider our request and hereby request the City to impose a housing
improvement special assessment fee against the individual units within the housing improvement area to
finance construction for housing improvements as described in the January 30, 1998, report from
Construction Consulting and Inspections, Ltd. We understand the City cannot issue bonds to assist in
the financing of these improvements to our property unless this petition is submitted by the undersigned
requesting that this housing improvement fee be imposed per Minn. Stat. 99428A.12 and 428A.14 after
a public hearing to consider the fee. We further understand a housing improvement area has already
been established over our units by New Hope City Ordinance pursuant to a previous petition we signed
requesting the creation of a housing improvement area to make the described improvements in the
Construction Consulting and Inspections. Ltd. report referred to above/]
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A IT ACHMENT 1
ROCKFORD OWNERS ASSOCIATION
1998 CAPITAL IMPROVEMENT PROJECT
OVERVIEW SPECIFICATIONS
(PRELIMINARY)
Construction Consulting & Inspections, Ltd.
January 30, 1998
...
2
General Overview
The intention of this document is to describe nec.essary activities and projected
professional fees for accompanying various improvements at Rockford Owners Association.
A general description of the improvements are generally as outlined in the Attachment 1,
"Rockford Owners Association, 1998 Capital Improvement Project, Overview Specification
(Preliminary). "
CC&I Activities
It is CC&I's intention to provide engineering and construction services for all activities
throughout the project, within the general scope that is understood and agreed upon.
Additional requested services or scope would be at additional mutually agreed upon fees (at
$120/hour), as would extensive redesigning or unforeseen requirements by the Association or
an authority such as the City or the State.
Segment One (Specifications, Bidding, Negotiations, Contracts)
1. Prepare complete Specifications (and drawings or sketches, as necessary) for all
improvement items (see Attachment I).
2. Interact with Association representatives and up to one meeting with Association board or
membership. Maintain weekly update with Association manager.
3. . Interact with City officials as necessary to establish additional requirements.
4. Prepare construction schedule.
5. Negotiate or bid each improvement item (group) to establish contractors and contract
pnces,
6. Present all contractors and prices to Association.
7, Prepare and process (A 1 A-A 1 07) contracts for Association signatures.
8. Gain final approvals and assist contractors with permit acquisitions.
9. Interact with Association to assist in set up of budget tracking and invoice payment
process.
..
3
10. Establish and prepare for start of work estimated at April 15 to May 1, 1998.
Segment Two (Construction Activity)
1. Verify all contractors and vendors as to contract requirements and permit acquisition
requirements (pre-construction meeting with contractors).
2. Overview contractor layouts of all work.
3. Prepare/maintain simple schedule for all work.
4. On-site inspections, problem solving, coordination on a daily basis for all work segments
(see Appendix A). CC&1 will not have a full time on-site inspection, but will inspect work
at least four times per week when primary work activity is going on. '
5. Weekly update meetings with Association representative and CC&I project executive.
Monthly update meetings with Association executive and CC&I project manager. Up to .
one final meeting with Association board.
6. Review and approval of contractor draw requests to Association.
7. Final inspection and punch list for final completion. Final completion verification to
Association.
Note that the following are currently known specifically not included services in this
phase that will be done only at additional mutually agreed upon fees: invoice payments,
permit acquisition (by contractors), budget tracking.
Schedule (approximate)
Segment One January 30 - May 1, 1998
Segment Two May 1 - October I, 1998
Fees and Terms
CC&I, Ltd. fees for the work outlined in this document will be approximately 3.5 to 4.0%
of the total construction estimate (Appendix A) dated 1/30/98. This will result in a fee of
approximately $22,000 to be split into Segment One ($8,250) and Segment Two ($13,750).
Payments to CC&I, Ltd. to be monthly at a rate of $2750/month for 8 months starting
February 28 (end of first month) and ending September 30 (end of eighth month). Association
will pay CC&I, Ltd. invoices within thirty days of invoice submission date.
~~
4
The Association may terminate the agreement and work by CC&I, Ltd. at any time for a
reasonable cause, but will pay CC&I, Ltd. the fees due up to that point plus a $5,000
severance fee. Any extensive scope changes, as well as change orders in excess of three (3),
due to scope changes, will require an additional fee, t9 be negotiated at the CC&I, Ltd.
$120Ihour rate. Any increases in scope that total $10,000 in cumulative amount will be
charged at 5% of the total amount of change.
Personnel
The CC&I, Ltd. project manager and executive will be John G. Russo, president and
principal of CC&I, Ltd, Mr. Russo will be directing the project for its duration. Another of
CC&I's engineers may be involved in either segment of the project.
""
~CONSTRucrJON
CONSULTING"
,~ INSPEcnONS, LTD.
Rockford Owners Association
New Hope, Minnesota
APPENDIX A
1998 CAPITAL PROJECT
BUDGET ESTIMATE - CONSTRUCTION (1/30/98)
6. GutterslDowns (Selected Buildings)
- Two buildings (240')
- 5" gutters, 3 x 4 downs, aluminum,
all eaves $1,700
7. Exterior Lights
- Duplexes (20 units)
· 4 lights/unit (80 total) @ $50 $4,000.00
- Four Plexes (16 units)
. 3 lights/unit (48 total) @ $50 2.400.00
$6,400
8. Vinyl Siding and Accessories (All Buildings)
- Siding, gable fascia, wrap windows/doors trim,
ceiling in stoops (no eave fascia/soffit) $186,000
9. Garage Mandoors (Duplexes Only)
- 14 steel doors, frames, hardware,
painted @ $225 $3.150
Subtotal $448,550
10. Other Construction Costs
- Project Management Fees @ 4.9% :i: $22,000.00
- Building Permit 2,500.00
- Contingencies and Inflation 16.500.00 $41.000
(Without City Costs) Total $489.500
...
2
APPENDIX B
CONSTRUCTION CONSULTING
SERVICES DESCRIPTION
FOR: ROCKFORD OWNERS ASSOCIATION
NEW HOPE, MINNESOTA
By: Construction Consulting
& Inspections, Ltd.
P. O. Box 390053
Minneapolis, Minnesota 55439
January, 1998
<>
3
1. WINDOWS
A. Remove all existing window units and dispose of properly.
B. Repair any evident rotting at frames and sills. This work to be on a T&M basis, with
$/hour to be determined in advance. Any bric~ mold or sill replacement to be with #2
pine stock sufficient to accept aluminum cladding.
C. Prepare openings to accept new windows.
D. Install new windows. Windows to be (or approved equal): Alside U1tra'Maxx fusion
welded, solid vinyl double hung windows with screens.
E. Seal entire perimeter of windows to sheathing with 6 inch wide strip of ice/water
shield.
F. Install drip edge "eyebrow" over windows. Drip to be aluminum (matching siding
color) and extend 2 inches past siding.
G. All colors to be determined by Association.
.iiIo
4
2. PATIO DOORS
A. Remove all existing patio doors and dispose of properly.
B. Repair any existing rotting at frames and sills.. This work to be on a T &M basis, with
$/hour to be determined in advance. Any brick mold replacement to be with #2 pine
stock sufficient to accept aluminum cladding.
C. Prepare opening to accept new doors.
D. Install new doors. Doors to be (or approved equal): Alside 6100 series v.inyl clad
wood patio doors with screens.
E. Seal top and both sides of doors to sheathing with 6 inch wide strip ice/water shield.
F. Install drip edge "eyebrow" over doors unless directly under roof overhang. Drip to be.
aluminum (matching siding color) and extend 2 inches past siding.
G. All colors to be determined by Association.
..
5
3. OVERHEAD GARAGE DOORS
A. Remove 36 existing garage doors, wood door stops, rails, and springs and dispose of
properly.
B. Remove and properly dispose of garage door openers if they do not meet current code.
If they do meet current code, disconnect, reconnect, and adjust after work is
completed.
C. Install thirty-six new sets of rails and springs appropriate for doors installed.
D. Install thirty-six new 24 gauge steel, prefinished, insulated, raised panel, 'V' rubber
astragal 16' wide garage doors.
E. Install thirty-six vinyl stops with (rubber seals) around doors.
F. Adj ust all doors, hardware, springs, stops for proper operation.
G. Door and stop colors to be determined by Association.
..
6
4. DECKS and ENTRY STOOPS
A. DUPLEX BUILDINGS
1. Rear Decks
a. Remove all existing footings and dispose of properly. Decks to be removed by
others.
b. All decks to be lowered such that the distance from the bottom of the patio
door sill to the top of the deck boards is 2 inches.
c. Cut and remove sidings at rim joist area.
d. Install..4 PCF treated wood rim joists on sheathings (cover sheathing with
ice/water shield strip first). Attach with minimum one lag bolt per joist space;
lag to penetrate into secure attachment substrate minimum two inches.
e, Install aluminum flashings over rim and under (new) siding. Install three inch
minimum strip of ice/water shield over top edge of flashings. '
f. Install (2) new 8 inch diameter footings with 16 inch bell-out at bottom for
each deck. Use sonotube forms for footings. Extend footings to 48 inch depth.
Imbed Simpson EPB #44 Post Base (or equivalent) into footing concrete to
accept 4 x 4 posts.
g. Build decks "between" footings and rim joists:
· 4 x 4 redwood posts.
· 2 x 8 (.4 PCF treated) joists with joist hangers.
. Double (.4 PCF treated) 2 x 8 beams covered with "deck seal" products or
equal.
. 5/4 (.4 PCF treated) deck top boards.
. All connectors to be "Deck Zipper" drywall screws with exterior grey
"Stalgard" coating (by Fastenrite: 612-646-9095) except nails to be used for
joist hangers, and other metal connectors.
· Install cross brace diagonally under decks.
h. Build rail system above decks:
· 2 x 2 cedar pickets (4" spacing).
. 2 x 4 cedar top horizontal rails with vertical 2 x 6 cedar support boards
below rails.
· All connectors as in 'hI above,
l. Build privacy fences above and below decks:
. Outer 4 x 4 vertical to be continuation of deck structure support 4 x 4.
. Privacy fence to be board on board (cedar) with 4 x 4 (.4 PCF treated) top
horizontal and 2 x 4 (.4 PCF) treated bottom horizontal.
· All connectors as in 'g' above.
2. Side Entry Stoops
a. Remove all existing footings and dispose of properly. Decks will be removed
by others.
..
7
b, Save all vertical posts and upper roof areas (all above the deck/rail level).
Remove and properly dispose of all other materials.
c. Replace post footings as needed with 12 inch diameter footings (with 16 inch
bell-out). Use sonotube forms for footings and extend to 48 inch depth. Use
above footing Simpson (or equal) conn.ector to connect post to footings.
d. Rebuild decks with equal sized materials (but .4 PCF treated) and screwed
together (except metal hangers and metal plates). See 4 Al.g above for screw
connectors. Save frames on all decks with block buttresses below.
e. Build rails same as noted for deck rails in 4 AI, above.
f. Build stairs of straight .4 PCF treated 2 x 12 (not cut outs) stringers. Attach (.4
PCF treated) 2x treads to side of stringers with steel L brackets screw
connected from the bottom. Rails to be the same as for decks.
B. FOUR PLEX BUILDINGS
1. Rear Decks
a. Remove garage interior ceiling drywall in all areas where rotted joists exist.
b. Remove and properly dispose of decks, saving all cantilever joists that are not
rotted.
c. Repair any rotting at building rim.
d. Install new .4 PCF treated joists into garage ceiling and attach (splice) to
existing joists -- cantilever new joists for deck supports. Splices to be 8 - 10
feet into garage roofs.
e. All deck details to be the same as for duplex buildings decks 4 AI, except:
o No privacy walls.
o No posts.
2. Front Entry Stoops/Decks
a. All details to be the same as for duplex building decks 4 A 1 except:
o No privacy walls.
b. Stair details to be the same as 4 A2.e.
...
8
5. ROOFS
A. Remove and properly dispose of all roofing materials down to the wood decks.
B. Remove and properly dispose of all existing guttering (but not downspouts).
C. Remove all roof vents and stack flashings.
D. Inspect roof deck sheathing. Any badly deteriorated sheathing to be replaced with
same thickness (as existing) CDX plywood, fully nailed in place (no staples).
This sheathing replacement to be on a T&M or unit price basis with $/S.F.
and $/hour determined in advance, including all proper disposal of old
sheathing. Contractor to nail existing plywood sheathing when necessary to make it
secure (as part of base price).
E. Install aluminum drip edge/gutter back flashings along all eaves. Drip edge/flashings tb
extend far enough up roof to be on sheathing at least one inch -- and down fascia so
as to be at least 2Yz inches into (commercial size) gutter. Face of drip edge/flashings to
be same color as gutters.
F. Install ice/water shield per code requirement. Ice/water to be sealed over drip edge
flashings.
G. Install one payer of reinforced (U.S. manufactured) 15 lb. felt underlayment (approved
by Association) throughout entire roof(s), properly lapped, and extending properly to
all edges. Felt not to be installed under ice/water shield. No felt to be left exposed
overnight or allowed to get wet such that it wrinkles. Any wrinkled felt to be removed
and replaced.
H. Install new Mid America Ridge Master 11.2 (or approved equal) ridge vents onto all
top ridges.
1. Install all new metal dryer or exhaust vents. Vent products to be approved by
Association. All connectors to be rubber grommet screws (colored heads).
1. Install all new flashings on plumbing vent stacks. Flashing products to be approved by
Association.
K. Install CertainTeed XT25 (or approved equal) fiberglass reinforced shingles, using
only roofing nails, on all roofs. Care must be taken so that nails are driven flush (not
over or under driven).
B-
9
L. Install a continuous bead of tar/roof cement under outside edge of shingles along all
rake edges.
M. On 4 plex buildings, replace all step flashings where roofs step up. Also install
ice/water shield on step up side walls (remove siding first).
N. All colors to be determined by Association.
.";
10
6. GUTTERS AND DOWNSPOUTS
1. All existing gutters will be removed by the roofing contractor and disposed of
properly.
2. All existing downspouts will be removed by the siding contractor and disposed of
properly.
3. Install premium quality 5 inch seamless prefinished aluminum (.032 aluminum)
guttering along all eaves. Back pan of gutter to be installed under drip edge/gutter
flashing (already installed by roofer). Spacer/supports to be installed as appropriate
(approved by Association).
4. Any seams or inserts to be sealed with "gutter seal" product or equal in the seams or
laps as the gutters are being installed.
5. Install 3 x 4 aluminum downspouts with minimum elbows. Downspouts to be
connected with square brackets (hidden screws behind downspouts into building and
two side screws into downspouts), not straps.
6. Install (.032 gutter grade) 3 x 4 bottom extenders as appropriate to flow water 3 feet
away from foundation or to appropriate hard surfaces.
7. All colors to be determined by Association.
".
11
7. EXTERIOR LIGHTS
A. Duplexes Buildings
1. All four exterior lights to be removed and wires capped with wire nuts by siding
contractor. Sider to properly dispose of lig~ts.
2. Siding contractor to install light (mounting) block for all lights.
3. Association will purchase and arrange for installation of all lights:
. Front: at garage, motion sensored; at entry, non sensored.
. Rear: lower, motion sensored; upper, non sensored.
B. Four Plexes Buildings
1. All three exterior lights to be removed and wires capped with wire nuts by siding
contractor. Sider to properly dispose of lights.
2. Siding contractor to install light (mounting) blocks for all lights.
3. Association will purchase and arrange for installation of all lights:
· Front: one, motion sensored.
. Rear: lower, motion sensored; upper, non sensored.
~
12
8. VINYL SIDING AND ACCESSORlES
A. Remove all existing sidings, shutters, wood 1 x comer trim boards (including on
chimney housings), window/door surround trim boards and dispose of properly. Nail
clean up to be continuous.
B. Repair any damaged sheathing or framing on a T &M basis ($/hour to be determined
in advance).
C. Remove all existing soffits and dispose of properly. Replace any fascia' boards (with
#2 pine) that are not in good enough condition to accept fascia aluminum cladding.
Fascia repair/replace will be a T &M item.
D. Remove all existing downspouts and accessories and dispose of properly.
E. Remove and properly dispose of all decks and entry porches/stoop. These items will .
be replaced by others, but siding contractor will install rim joist, properly flashed as
siding progresses. Do not remove footings (they will be removed by others).
F. Remove and properly dispose of all lights and wire nut all wires.
G. All lights and electrical outlets to be properly vinyl blocked. Hose bibs to have vinyl
surrounds installed,
H. Remove and properly dispose of all vents on the face of buildings (not roofs). Install
new quality, heavy viny I vents. Products to be approved by Association.
1. Install Dupont TYVEK housewrap over all building walls to be sided, seams
overlapped minimum 6 inches.
J. All TYVEK to be 100% taped at all joints, seams, tears; and around all windows,
doors, vent openings, and all other openings or penetrations.
K. Install a (.4 PCF treated) 2 x 6 kick plate at the bottoms of all sidings where hard
surfaces or cut grass exists below. Screw kick plate in place and install flashing over
top edge. No painting of plates.
L. Coordinate and make arrangements with cable TV company to get as much coax cable
off walls as possible, Remaining cable to be tucked under siding as much as possible.
M. Address numbers to be removed and properly disposed of. Contractor to install
number plates (one per unit for duplexes, two per unit for four plexes) provided by
Association. All number plates to be located as directed by Association.
;;.
13
N. Install premium quality .019 minimum aluminum soffit system under all eaves, as
specifically indicated. This will include the narrow band around all duplex porches (all
50-50 vented).
-
O. Install.O 19 minimum fascia cladding on all gable fascia boards and all eave fascia
boards specifically indicated. Install 2x over rake fascias before cladding.
p, Install. 019 minimum cladding at the following areas:
1. All windows and doors (mandoors at garage and patio doors) brick. molds.
All window sills.
2. Entry doors brick molds and side lights (to the glass). Tuck cladding under storm
frame edges where storms exist. If no storm, clad to first inside corner.
3. Garage overhead doors surrounds. Note that vinyl stop at overhead doors will be
by garage door contractor.
4. Under chimney housings top flashings (caps) and over the top edges of siding and.
covers in a "skirt" fashion.
Q. Install new premium quality vinyl shutters in all locations where shutters now exist.
Shutter configuration, quality l and colors to be approved by Association.
R. Caulk all interface areas (siding to cladding) with top quality one part urethane or
butyl rubber caulk. Also caulk open top separations at the corners of all windows
and doors -- and any other open areas in the siding or accessories that may allow
water penetration. All caulk to be hidden but detectable with knife. If cladding flashes
behind J channel and/or siding at least one and one-half inch and a tight seam exists,
no caulking at these ioints is required.
S. Install premium quality nominal 0.044 triple 3 or double 4 or 4.5 vinyl siding and
accessories on all walls where siding currently exists. Installation must be 100%
according to manufacturer's instructions (as a minimum)and those instructions must be
provided prior to start of work. All storage on-site must be in contractor provided
truck or trailer. Manufacturer to be approved by Association prior to bid/quote.
T. All colors/textures for all products to be determined/approved by Association.
U. All removed materials to be placed in a dumpster (by contractors) or hauled from site
daily, If materials are not hauled daily l the Association will have a dumpster placed on
site and charged the contractor.
""
9. GARAGE MANDOORS
(Duplexes Only)
A. Remove all twenty garage mandoors at duplexes and dispose of properly.
B. Do necessary repairs in surrounds (on T&M basis).
C. Install twenty new steel doors and frames; paint doors.
D. Colors to be determined by Association.
~
14
::-
DRAFT
DEVELOPMENT AGREEMENT
Between
CITY OF NEW HOPE, MINNESOTA
and
ROCKFORD OWNERS ASSOCIATION
Dated as of:
, 1998
p.
TABLE OF' CONTENTS
PtG::
ARTICLE I - DEFINITION. . . . . . . . . . . . . . '.' . . . . . . . . . . . . . . . . . . . . . . . ;. . . .2
Section 1.1.
De fin i t ion s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
ARTICLE II - REPRESENTATIONS AND WARRANTIES....................... 6
Section
Section
2. 1 .
') ?
'- . '- .
Re pre s en tat i on s by the C i t y. . . . . . . . . . . . . . . . . . . 6
Represent at ions and War rant i es by. the
As so c i at ion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
ART I CLE I I I - I SSUANCE OF BONDS; 0 I SBURSEMENT OF PROCEEDS. . . . . . . . .8
Section 3.1.
Section 3.2.
Section 3.3.
Section 3.4.
Section 3.5.
Section 3.6.
Section 3.7.
Section 3.8.
Section 3.9.
Section 3.10.
Section 3.11.
Section 3.12.
Issuance of Bonds. . . . . .. . . . . .. . . . . .. . . . . .. . .. .8
Conditions Precedent to Initia1
Di sbursement.. . . . . .. . . .. . .. . .. . .. . .. . .. . .. . .. .9
Further Conditions Precedent to A';
Di sbursement s. . . .. ...... ... . .. . .. . .. . .. . .. . ..10
Re que s t s for D i s bu r s em en t s . . . . . . . . . . . . . . . . . . . 1 1
Conditions Precedent to the Final
Di sbursement................... ...... .. . .... .12
Wa i ve r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ; 3
DeDosit of Funds by Association............. .13
Appl ication of Proiect Fund Balance......... .13
ApDlication of Fee Revenues Balance......... .14-
Sp e cia 1 Res e r v e Fun d . . . . . . . . . . . . . . . . . . . . . . . . . 1 5
Investment of Soeci al Reserve Fund. . '" .. ....; 5
Re 00 r t by Ci t y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 5
S.:::,,:~ ~on 4.1.
ART I C LE I V ..........'.............................................' e,
Sec'cion 4.2.
Section 4.3.
Section 4.4.
ARTICLE V - INSURANCE
Sect~on 5.1.
Section 5.2.
Const ruct i on of Housi nq Improvements. . . . .. . . . - e
Co n s t r uc t ion P 1 a ns . . . . . . . . . . . . . . . . . . . . . . . . . , . 1 6
Com men c em e n tan d C om ole t ion 0 f Con s t :- 'J :;.. t '') r' . . 1 7
Ce r t i f i cat e 0 f Can ole t ion. . . . . . . . . . . . . . . . . . . . " 7
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. :?,
Insurance.. . .. . . . . .. . . .. . .. . ... .. . .. . .. . .. . ..;.s
Su b 0 r din at ion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :2 C
ARTICLE VI - SPECIAL COVENANTS. . . . . . . . . . . . . . . . . . . . . . . . . .
:::eCl:,on 6.1.
No Warre.nty of Condition or Suitab~'c..l..:L..,.
Indemnification............................ ..2"
..
Section 6.2.
Section 6.3.
Section 6.4.
Section 6.5.
Section 6.6.
Section 6.7.
Section 6.8.
Section 6.9.
Section 6.10.
Sect ion 6.11.
Section 6.12.
Section 6.14.
Section 6.15.
Financial Statement_~........................ .21
Financial Plan~Annuq_L8.soor~.............. .22
Re cor d san dIn spec t ion. . . . . . . . . . . . . . . . . . . . . . . 23
Ma i n t e na n ceo f Pro p e U..y. . . . . . . . . . . . . . . . . . . . . . 23
Covenant to Ma i nt a~_N~L.Revenues Ava i 1 ab 1 e
for Debt Servi c~.... .. .... ...... . ..... .......23
Assignment of Association Assets............ .24
Association toMaintain Its Existence....... .26
Prohibition Against Assignment of Agreement. .26
Notice of Fee Uoon Transfer of HOUSing UnitS.26
Repair and Replacement Policy................26
Increases in Assessments.................... .27
FH A / H U 0 I n su I' an c e. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 7
Ex 0 e r i en c e d Pro pert y M an ~ . . . . . . . . . . . . . . . . . 27
ARTICLE VI I - EVENTS OF DEFAULT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
Sect ion 7.1.
Section 7.2.
Section 7.3.
Section 7.4.
Events of Default Defined................... .28
Remedi es on Defaul t. . . .. . . . ...... . .. .... .. ...23
No R eme d y Ex c 1 us i v e . . . . . . . . . . . . . . . . . . . . . . . . .. 29
No Additional Waiver Imp' ied by One Waiver-.. ..29
ARTICLE VIII -ADDITIONAL PROVISIONS. ........................... .29
Section 8. 1
Section 8.2.
Section R ')
:...J.-.J.
Section 8.4.
Section 8.5.
Section 8.6.
Secti.on 8.7.
Section 8.8.
Section 8.9.
Schedule A
Conflict of Interests; City Representatives
No t I nd i vi d ua 1 1 y L i a b 1 ~. . . . . . . . . . . . . . . . . . . . . . 29
Equal Employment Opportunity................ .29
Provisions Not Merged With Deed............. .29
Titles of Articles and Sections............. .30
Not ices and Demands. . . .. . . . . .. . . . . .. . . . . .. . . .30
Co u n t e rp art s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Re cor din 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3:]
Bi nd i ng Ef feet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30
AJTI end m en t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3:]
SCHEDULES
Schedule B
Property
Housing Improvements
SChedule C
Schedule D
D i s bur s em e n t R e q u 1 S , t i on c f ASSOCi at 1 on ' sA u t h::::. " , 2: e::::
Representative
i i
ii>
DEVEL.OPMENT AGREEMENT
THIS AGREEMENT, made on the day of
1998, by and between the CITY OF NEW HOPE, a M nnesota municipal
corporation (the "City") and ROCKFORD OWNERS ASSOCIATION, a
Minnesota nonprofit corporation (th-e "Association").
WITNESSETH:
WHEREAS, the City is autho,ized under Minn. Stat. Chapter 428A
(the "Act") to establish by ordinance a housing improvement area
within which housing improvements are made or constructed and the
costs of t~e improvements are paid in whole or in part by special
assessments imposed against the benefiting properties within the
area; and
WHEREAS, by Ord i nance r~o. 98-02 adopt ed January 12, 1998 (t he
"Enab1ins Ordinance"), the Council established a Housi'ng
Improvementt..rea for the Sandpiper Cove Townhome development in
order to facilitate certain improvements to 36 individual townhome
units within said development, which property is legally described
in Schedule A hereto and is hereafter referred to as the
("Property"); and
WHEREAS, by Resolution No. 98- adopted
1998 (the "Fee Resolution") the City Council imposed a special
assessment fee on Housing Units (as hereinafter defined) in the
Sandpiper Cove Townhome Housing Improvement Area in order to
finance certa~n housing improvements in that area; and
WHEREAS, the Act authorizes the City to issue bonds in the
amount necessary to defray the expenses to be incurred in making
the housing improvements, which bonds are payable primarily from
proceeds of the special assessment fee imposed under the Fee
Resolution and may be f~rther secured by the pledge of the City's
full faith, credit and taxing power; and
WHEREAS, prior to adopt'on of the Fee Resolution by the City
Council, the Association subnntted to the City a financial plan in
accor'dance with the /J.,ct that orovides for the ,~ssQcjation to
fir-ance maintenance and i)peration of the common elements in thE;
Sar;doioer Cove Townhome developrner,t ana a long-range plan tc
conduct and finance capital improvements therein; and
WHEREAS, the:;t; bel ieves that
irnpt""ovements to t'i€ Property pursuant to
ru1 f'i' lment gener-any of this Agreement: are
development of ~he
this Agreement, anc
in the vital and bes:
...
interests of the City and health, safety, morals and welfare of its
residents, and in accord with the public purposes and provisions of
the applicable State and local laws and requirements under which
the Sandpiper Cove Townhome Housing Impr:ovement Area has been
undertaken.
WHEREAS, the Association intends to complete the housing
lmprovements as further described in this Agreement.
NOW, THEREFORE, in consideration of the premises and the
mutual obligations of the parties hereto, each of them does hereby
covenant and agree with the other as follows:
ARTICLE 1
Definitions
Sect~on 1.1 Definitions. In this Agreement,
d,fferent meaning clearly appears from the context:
unless a
'Act" means Minn. Stat. 88428A.l1 through 428A.21 (Laws 1996).
,
",t,dministrative Fund" means the fund established by the City
into which interest earnings will be deposited pursuant to Section
3.1(c) hereof.
"Annual Debt Set-vice" means the amount of principal and
interest payable on the Bonds on February and August 1 of each
)/ear.
"t..ssociation" means Rockford .owners Association or itS
permitted successors and assigns.
"L,ssociation's Author-ized Representative" means the property
manager retained by the Association to manage the Property.
"~.gl-eement" means this Agreement, as the same may be from +l,n,:::.
to time ~odified, amended or supplemented.
"Bends" means the general obligation bonds or obligatlons
lsswed by the City in connection with the Housing Improvemen. Area
p u ;- sua n t tot h e Act, and any bon d s 0 1- 0 b 1 i gat ion s i s sue ,] Lor e Tun 0
any Bonds.
'30(1d Fund" means the debt service
es-.:ab'-shecJ under the Bond Resolution.
.;: '.t:
,una lor
the Bonds 1:0 be
, 8:::. ,;] Res 0 1 u t i:J n" ir, e a n s t he res 0 1 uti on to be approved by t he
C 0 :/:: ; ::,', a ,- :j . n 9 the :3 a 'e and est a b 1 ish i n 9 t Ii e t e 1- m s :::;. f -.: h e Bon d ~~ ,
,..,
c.
;>
"City" means the City of New Hope, Minnesota.
"Certificate of Completion" means the certification provided
to the Association, pursuant to Section 4.4 of this Agreement.
"Common Area" means the common area as defined in the
Declaration.
"Completion Date" means the date of actual completion of the
Housing Improvements as certified "by the City Building Official
pursuant to Section 4.4 hereof.
"Construction Contacts" means the contract(s) between the
Contractor(s) and the Association to complete the Housing
:mprovements in accordance with the Construction Plans.
"Construction Plans" means the plans, specifications, drawings
and related documents on the construction work to be performed by
the Association on the Property which shall be as detailed as the
City may reasonably request to allow it to ascertain the nature and
qual ity of the proposed construction work.
"Contractor" means any person, including subcontractors, who
shall be engaged to work on, or to furnish materials and supplies
for the Housing Improvements.
"Counci 1" means the City Counci 1 of the City.
"County" means the County of Hennepin, Minnesota.
"Declaration" means the Declaration of Covenants, Conditions
and Restrictions for Rockford Owners Association dated
as amended.
" D raw R e que s t" mea n s the f 0 1- m, sub s tan t i all y i nth e for m 0 f
Schedule 0 attached hereto, which is submitted to the City when a
disbursement is requested and which is referred to in Section 3.~
hereof.
t: n a 0 I 1 n g 0 I'" din an c e" mea n s (; 1- din an c e No. 9 8 - 0 2 ado p t e d b y the
Ccuncil on January 12, 1998, which establishes the Housing
Improvement Area.
"Engineer" means
lmited, the engineers
c.ause to be prepared
Imp'-o/ements.
Construction Consulting and Inspections,
selected by the Association to prepare or
the Construction Plans for the Housing
"Er;gineers Contract" means the agl-eement by and between the
to., s So cia T ion and the E n gin e e r p e ,- ": a i n ~ n 9 top r e par at ion 0 f the
Const'-uction Plans and supervision of construction.
'"
..)
'"
"Event of Default" means an action by the Association listed
1n Article VIr of this Agreement
"Fee" means the special assessment fee in connection with the
Housing Improvements imposed on all Housing Units in the Housing
Improvement Area pursuant to the Fee Resolution.
"i=ee Resolution" means Resolution No. 98-_, adopted by the
Council on 1998, which imposes the Fee.
"Fee Revenues" means all proceeds of the Fee payable to the
City.
"Financial Advisors" means or
any successor Independent financ a advisory firm retained by the
{:;;ty.
"Financial Plan" means the Financial
Association dated
Plan prepared by the
, 1998.
"Fiscal Year" means any year commencing January 1 and ending
Decembe r 31.
"Housing Improvements" means the improvements to the Property
as set forth in Schedule 8 hereof.
"Housing Improvement Area" means the real property located
within the Sandpiper Cove Townhome Housing Improvement Area.
"Housing Unit" means real property and improvements thereon
within the Housing Improvement Area, consisting of one lot on which
a dwelling unit is located that is occupied by a person or persons
for use as a residence.
"Independent", when used with reference to an attorney,
en 9 ; nee r , arc hit e c t , c e r- t i fie d pub 1 i c a c co un tan t ,or 0 the r
professional person, means a person who (i) is in fact independent,
(i i) does not have any material financial interest in the
Association or the transaction to which his or her certificate or
opinion relates (other than the payment to be received for
professional set-vices rendered), and (iii) is not connected win 1'.,,,,
City or the Association as an officer, director or employee.
"Inspecting Engineer" means the Engineer-.
"Management Consultant" means a person or entity, experienced
in the study and management of multi-unit rental housing and naving
a favorable reputation throughout the United States or the State o~
Minnesota for skill and experience in such work and, unless
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otherwise specified herein, retained or employed by the Association
and acceptable to the City whose acceptance shall not be
unreasonably withheld.
"Maturity Date" means the date the Bonds have been fully paid,
defeased or redeemed in accordance with their terms.
"Mortgage" means
secured, in whole or
permitted encumbrance
this Agreement.
any mortgage made by the Association which is
in part, with the Property and which is a
pursuant to the provisions of Section 6.9 of
"i'Jet Revenues Available for Debt Service" means, as of the
date of calculation, the balance in the Bond Fund and any other
fund into which Fee Revenues have been deposited as of the date of
calculation, less the amount of fees, as estimated by the City's
Financial Advisor, that are anticipated to be payable by the City
in connection with the Bonds on or before the next Payment Date to
the City's Financial Advisor-, the registrar for the Bonds, and the
paying agent for the Bonds,
"Payment Date" means any date on which the principal, interE;st
and premium, if any, is due and payable on the Bonds.
"Permitted Investments" means investment legally permitted for
the City's funds.
"Project Fund" means the Project Fund to be created by the
Bond Resolution.
"Property" means the real property described in Schedule A. of
this Agreement.
"Special Reserve Fund" means the special reserve fun,j to be
created and distributed pursuant to Section 3.10 of this .A.greemen!,
"State" means the State of Minnesota.
"Unavoidable Delays" means delays beyond the reasona:J'e
con: 1'"01 of the party seeking to be ex'cused as a result theree,f
which are the direct result of strikes, other labor troubles, f ~e
o ,- 0 the rea sua 1 t Y tot h e H 0 u sin g Imp r 0 v em e n t s 0 r the P ,- 0 p e :- t j ,
l;tigation commenced by third parties which, by injunction or ,:)the'-
similar judicial action, directly results in delays, or acts of anI
federal, state or local governmental unit (other than the City in
exercising its rights under this Agreement) which directly res~lt
in celaY3. 'Jnavoidable Delays shall not include delays c" tr:e
Assoc;at1on's obtaining of permits or governmental approvals
G8Cessary to enable construction of the Sandpiper Cove Townhome
tj e '.; e 1 ,] pm e r1 t b y the d ate s sue h con s t rue t ion i s r e qui ,- e dun d e ,-
Section ~.3 of this Agreement.
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ARTICLE II
Representations and Warranties
Section 2.1. Representations by the Cit~. The City makes the
following representations as the basis for the undertakings on its
part herein contained:
(a) The City is a municipal corporation under the laws of the
State and has the power to enter info this Agreement and carry out
its obligations hereunder.
( b )
issuance
Act.
The undertaking 'of the Housing Improvements and
by the Municipality of the Bonds are authorized by
the
the
(c) On January 12, 1998, after receipt of petitions by owners
of at 1 east 25 percent of the Hous i ng Un its in the Hous i ng
Improvement Area and after due publication and mailing of notice of
heal-ing, the Council held a public heal-ing on the adoption of the
Enabling Ordinance and adopted said Enabling Ordinance.
(d) On after receipt of petitions by
owners of at least 25 percent of the Housing Units in the Housing
Improvement Area and after due publication and mailing of notice of
hearing, the Council held a public hearing on the adoption of the
Fee Resolution and adopted the Fee Resolution.
(e) The periods for veto of both the Enabling Ordinance and
the Fee Resolution have expired without objection by owners of at
least 35 percent of the Housing Units in the Housing Improvement
Areas all in accordance with the Act.
(f) To finance costs of the Housing Improvements, the City
proposes to issue the Bonds as provided in the Act, and to disburse
the pt-oceeds thereof to the Association pursuant to this Agreement.
The City will initially issue Bonds in the aggregate principal
amount as described in Section 3.1 hereof and the Bonds shall be in
the form and shall be subject to the terms and provisions set forth
.~ the Bond Resolution and the terms of this Agreement
(g) There is no litigation oending or to the best of ',c:
~nowledge, threatened against the City relating to the Housi"9
Improvements or to the Bonds or questioning the powers or authority
o~ the City under the Act, or questioning the corporate existence
0:- boundar~es of the City or the title of any of the present
officers of the City to their respective of~ices.
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(h) The execution, del ivery and performance of this Agreement
does not violate any agreement or any court order or judgment in
any litigation to which the City is a pa.rty or by which it is
bound.
Section
Association.
.2.2. Representations and Warranties by
The Association represents and warrants that:
the
(a) The Association is a nonpro~it corporation, duly organized
and in good standing under the laws of the State of Minnesota, is
not in violation of any provisions of its articles of
incorporation, bylaws or the laws of the State, is dUly authorized
to transact business within the State, has power to enter into this
Agreement and has duly authorized the execution, 'delivery and
performance of this Agreement by proper action of its board of
directors.
(b) The Association will construct, operate and maintain the
Housing Improvements in accordance with the terms of this
Agreement, the Financial P'an, and all local, state and federal
1 a w san d reg u 1 at ion s (i n c 1 u din g, but not 1 i m.i t e d to, en vir 0 n men t Ell ,
zoning, building code and public health laws and regulations).
(c) The Housing Improvements constitute a permitted use under
applicable zoning laws.
(d) The Association has received no notice or communication
from any 'ocal, state or federal official that the activities of
the Association or the City in the Housing Improvement Area may be
or will be in violation of any envir'onmental law or regulation
(other than those notices or communications of which the City is
aware). The Association is not aware of any facts the existence of
which would cause it to be in violation of or give any person a
valid claim under any local, state or federal environmental law,
regulation or review procedure,
(e) The Association will constr-uct the Housing Improvements in
accordance^,ith all local, state or federal energy-conservation
laws or regulations.
(f) The Association w,l' obtain, in a timely
r-equ i r-ed permi t s, 1 i censes and approval s, and wi 11 meet
man n e '-, a I 1 r- e qui 1- em e n t s 0 f all a p p 1 i cab 1 e 1 0 c ai, s tat e
laws and regulations wnlcn must be obtained or met
Houslng Improvements may be lawfully constructed.
miner, a'l
in a timely
and federal
before the
(g) Neither the e7..ecu:ion and delivery of this Agreement, the
c:) n s u mm a t 1 0 n 0 f the t ,- an sac t 1 0 n s con t em pia t e d her e by, nor the
fulfillment of or compliance wi~h the terms and conditions of this
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MAR-20-98 FRI 08:53
P. 02/02
Agreement is prevent~d, limited by or conflicts with or results in
a breach of. the terms, conditions or provisions of any corporate
restriction or any evidences of indebtedness' agreement or
instrument of whatever nature to whioh the Association is now a
party or by which it is bound, or constitutes a default under any
of the foregoing.
(h) Whenever any Event of Default occurs and if the City shall
employ attorneys or incur other expenses for the collection of
payments due or to become due or for the enforcement of performance
or observance of any obligation or agreement on the part of the
Association under this Agreement, the Association agrees that it
shall, within ten days of written demand by the City pay to the
City the reasonable fees of such attorneys and such other expenses
so incurred by the City.
ARTICLE III
Issuance of Bonds; Disbursement of Proceeds
Section 3.1. rssuanc~...of a~mds.
(a) I n order to prov; de funds to def ray the cost s of the
Housing Improvements, the City will issue the Bonds in the maximum
principal amount that is supported by the Fee Revenues and will
produce total funds in the amounts of $600,000.00 (the "Net project
Amount"), inCluding: (i) proceeds of the Bonds. net of costs of
issuance, administrative costs. the Special Reserve ~und and
capitalized interest through ; and (;1) all
Fee Revenues prepaid by owners of Housing units in accordance with
the Fee Resolution; prOVided that the Net Project Amount may be
such lesser amount mutually agread by the Association and the City
in the event the cost of the Housing Improvements and the total Fee
is reduced in accordance with the Fee Resolution.
At clos;ng on issuance of the Bonds, proceeds (net of
capitalized interest, costs of issuance, administrative costs and
t he amount depos it ad ; n t he Spec i a 1 Reserve Fund under Sect; on
3.10) together with prepaid Fee RGYenues, shall be deposited by the
City into the Project Fund for disbursement to the Association in
accordance with the terms of this Agreement_ Moneys in the Projsct
Fund shall be subject to withdrawal from time to time only for the
purposes of paying the costs of the Housing Improvements
establishing the Special Reserve Fund or subject to any applicab1e
provision of law. for payments theretofore mada by the ASSOCiation
for such cost $. None of t he Funds ; n the Proj act Fund sha 11 be
used for any purposes other than payment or reimbursement of such
8
costs Of the Housing Improvements, except as otherwise provided in
Section 3.9 or Section 3.10 hereof. The City will issue the Bonds
by , subject to Unavoidable Delays, the City's
ability to issUe the Bonds under existing laws and market
conditions, and provided there are no outstanding Events of Default
under this Agreement.
(b) Under the Bond Resolution,-the City will deposit into the
Bond Fund capitalized interest through
together with Fee Revenues in the amount necessary to pay when due
the pr'incipal, interest and premium, if any, on the Bonds. All
other Fee Revenues in excess of the amount necessary to pay when
due the principal and interest on the Bonds will be deposited into
a separate '-evenue account to be establ Tshed unqer the Bond
Resolution and maintained by the City until the Maturity Date.
Subject to the prior pledge of Fee Revenues to payment of principal
and interest 011 the Bonds, the City may at its sole discretion
apply funds in such revenue account: (i) to pay registrar and
paying agent fees, if any, in connection with the Bonds; n';) to
pay other administrative costs in connection with the Bonds or the
Housing Improvement Area; (iii) to pay costs in connection with
enforcement by the City of the Association's obligations under this
Agreement (provided that any such payment is subject to
reimbursement by the Association pursuant to Section 2.2(h) hereof,
and nothing in this Section 3. l(b) shall be construed to require
the City to pay costs of enforcement in the first instance as
provided herein); and (iv) in accordance with Section 3.9 hereof.
(c) The City and Association agree, and the Bond Resolution
shall so provide, that interest earnings on funds in the Project
~und, the Special Reserve Fund and any other revenue fund
established under the Bond Resolution, shall be deposited in and
credited to the Administrative Fund. Interest earnings on the Bond
Fund will be credited to the Bond Fund.
(d) The Administrative Fund shall be disbursed by the City in
its discr-etion for any purpose in connection with the Housing
Improvement Area.
Section 3.2. Conditions Precedent to Initial Disbursement.
The obligation of the City to make the initial disbursement
r,ereunder shall be subject to the c.ondition precedent that the
Association shall be in complianc~ with the conditions contained ir
Section 3.3 hereof and the furt'her condition precedent that the
C i t Y s h all h a v ere c e i v ed, 0 nor b e f 0 1- e the d ate 0 f s u c h j n " t i 3 1
disbursement hereunder, the following:
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(a) A copy of the Construction Plans, approved by the City
Building Official in accordance with Section 4.2 hereof and in
detail sufficient to enable the Association to authorize
commencement of construction of the Housing Improvements, certified
by the Engineer and the Association;
(b) Copies of the Engineers Contact, the Construction Contract
and such subcontracts as may be reasonably requested from time to
time by the City;
(c) A sworn construction statement duly executed by the
Assoc'iation and the Engineer for the Housing Improvements showing
estimates of all anticipated Contractors' contract or subcontracts
for specific portions of the work on the Housing Improvements and
the amounts anticipated to become due each such Contractor,
including all costs and e.x:penses of any kind incurred and to be
incurred in construction of the Housing Improvements;
(d) A total project cost statement, incorporating estimates of
the construction costs as shown on the sworn construction statem~nt
described in paragraph (c) above and setting forth all other costs
and expenses of any kind anticipated to be incurred in completion
of the Housing Improvements and sworn to by the Association to be
a true, complete and accurate account of all costs actually
incurred and a reasonably accurate estimate of all costs to be
incurred in the future,
(e) Copies of any licenses and permits which the Inspecting
Engineer certifies as necessary and sufficient to construct the
Housing Improvements, including all foundation and grading permits
and building permits from time to time necessary for such
construction.
Section 3.3. Further Conditions Precedent to All
Disbursements. The obligation of the City to make the initia;
disbursement hereunder and each subsequent disbursement hereunder
s h all b e sub j e c t tot h e con d i t ion pre C; e den t t hat the Ass 0 cia t i 0 I',
S h all be i n com p 1 i an c e wit h ail con d 1 t ion sse t for t h inS e c t ion
3.2. hereof, and the further conditions precedent that on the date
of such disbursement:
(a) The City has ,-eceived a written statement from the
Assoclation's Authorized Representative certifying with respect to
each payment: (I) that none of the items for which the payment is
p;'oposed to be made has formed the basi s for any payment
theretofore made from the Project Fund; (II) that each item fOr"
wh i ch t he payment ~ s pr-oposed to be made is or was necessary in
connection with the Housing Improvements; and (III) that following
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such proposed payment sufficient moneys will remain on deposit in
the Project Fund to providE?for payment in full of all remaining
costs estimated to be incurred in order to complete the Housing
Imp t- 0 v em en t s . I nth e cas e 0 fan y con t r act pro v i d i ri 9 for the
retention of a portion of the contract price, there shall be paid
from the Project Fund only the net amount remaining after deduction
of any such portion.
(b) No Event of Default under"this Agreement or event which
would constitute such an Event of Default but for the requirement
that notice be given or that a period of grace or time elapse,
shall have occurred and be" continuing.
(c) No determination shall have been made by the Inspecting
Engineer that the amount of undisbursed moneys, together with
expected earnings thereon and any amount of other funds deposited
in the Project Fund by the Association or to be deposited under
Section 3.7 hereof, are insufficient to pay expenses of any kind
which reasonably may be anticipated in connection with the
completion of the Housing Imp~ovements; or if such a determination
has been made and notice thereof sent to the Association, t;he
Association has deposited the necessary funds with the City in
accordance with Section 3.7 hereof.
(d) The disbursement requirements set forth in Section 3.4
hereof have been satisfied.
(e) If requested by the City, the City shall be furnished with
a statement of the Association and of any Contractor, in form and
substance satisfactory to the City setting forth the names,
addresses and amount due or to become due as well as the amounts
previously paid to every Contractor, subcontractor, person, firm or
corporation furnishing materials or performing labor entering into
the construction of any part of the Housing Improvement.
(f) No license or permit necessary for the construction of the
H 0 u sing Imp r 0 v em e n t s s h all h a v e bee n rev 0 ked 0 r the i s sua nee
thereof subJected to challenge before any court or other
governmental authority having or asserting jurisdiction thereover.
Section 3.4. Requests for Disbursement.
(a) Whenever the Associat~on desires a disbursement to be made
'1ereunder, which shall be no more often than monthly, t!",e
.~ssociation shall submit to the City a Draw Request, duly executed
or behalf of the Association, setting forth the infor-mat'on
!-equested th9r-ein. Disbursements will be made the Wednesday"
f::. 1 1 'J W ' "g the s e con d ~}, 0 n day 0 f e a c h m 0 nth , pro v ide d the D t- a w
Reouest lS received by the 20th day of the preceding month. ~ach
1 1
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Dt'aw Request shall be 1 imited to amounts equal to (i) the total of
such costs actually incurred and owing (or previously paid by the
Association to the date of such Draw Reque.st for work performed'bn
and materials used if! the Housing Improvements, plus (ii) the cost
of materials and equipment not incorporated in the Property, but
delivered to and suitably stored at the Property; less, (iii) (a)
a minimum of five percent, and (b) at all times less prior
disbursements. Notwithstanding anything herein to the contrary, no
disbursements for materials stored at the Property will be
authorized unless the Association shall provide adequate security
f 0 t' S U c h s tor age . E a c h D raw R e que s t s h all con s tit ute a
r e pre S e n tat ion and wa ,- ran t y by the Ass 0 cia t ion t hat all
/-epresentations and warranties set form in this Agreement are true
and correct as of the date of such Draw Request.
(b) At the
Association shall
time of submission of each Draw
submit the following to the City:
Request,
the
(i) A written lien waiver from each Contractor for work
done and materials supplied by it which were paid for pursuant
to the next preceding Draw Request.
(ii) Such other supporting evidence as may be requested
by the City to substantiate all payments which are to be made
out of the relevant Draw Request and/or to substantiate all
payments then made with respect to the Housing Improvements.
(c) If on the date a disbursement is desired, the Association
that performed all of its agreements and complied with all
requirements theretofore to be performed or complied with
hereunder, including satisfaction of all applicable conditions
precedent contained in Article III hereof, upon approval by the
Council the City shall make a disbursement to the .A.ssociation in
the amount of the requested disbursement, or such lesser amount as
shall be approved.
Section 3.5. Conditions Precedent to the Final Disbursement.
The making of the final disbursement by the City from the Project
Fund shall be subject to the condition precedent that the
Association shall be in compliance with al' conditions set forth in
See t 1 0 n s 3. 2 t h r 0 ugh 3. 4 her e 0 fan d, f u /- the r-: t hat the f 0 1 1 0 'II i n 9
conditions shall have been satisfied prior to the Completion Date:
(a) The Housing Improvements nave been subs'Car.tially completed
'., ace 0 r- d a nee 'II i t h the Con s t rue t ion P 1 a n san d Art i c 1 e I V her e 0 f :
and the City shall have received a certificate of completion frOT
": h e A, S so cia t ' 0 n and the Ins p e c tin 9 En gin e e r, c e 1- t i f Y i n 9 t hat tot h e
b est 0 f the irk now led 9 e (i) 'II 0 r k 0 nth e H 0 u sin 9 I rn pro \I e me', t s h 213
~een completed in accordance with the Const~uction Plans and a'-
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other labor, services, materials and supplies used in such work
have been paid for; (ii) the completed Housing Improvements conform
with all applicaqle .building laws and regulations of the
governmental authorities having jurisdiction over the Housing
Improvements; and (iii) lien waivers submitted to the City under
Section 3.5(c) cover all labor, services, materials and supplies in
connection with the Housing Improvements.
(b) The City shall have received satisfactory evidence that
all work requiring inspection by municipal or other governmental
authorities having jurisdiction has been duly inspected and
approved by such authorities and by the bureau, corporation or
office having jurisdiction, and that all requisite certificates of
occupancy and other approvals have been issued.
(c) The City shall have received a lien waiver from each
Contractor for all work done end for all materials furnished by it
for the Housing Improvements.
Section 3.6. Waiver. The City may, in its sole discretiqn,
without notice to or consent from any other party, waive any or all
conditions for disbursement set forth in this Article. However,
the making of any disbursement prior to fulfillment of any
condition therefor shall not be construed as a waiver of such
condition, and the City shall have the right to require fulfillment
of any and all such conditions prior to authorizing any subsequent
disbursement
Section 3.7. Deposit of Funds by Association. If the City
shall at any time in good faith determine that the amount of funds
then on deposit in the Project Fund, together with expected
earnings thereon, is less than the amount required to pay all costs
and expenses of any kind which reasonably may be anticipated in
connection with the complet'on of the Housing Improvements and
shall thereupon send written notice thereof to the Association
specifying the additional amount required to be deposited by the
Association to provide sufficient funds to complete the Housing
Imp r 0 v em e n t s) the Ass 0 cia t ion a 9 r- e est hat i t w ill, wit h i n ten (1 0 )
calendar days of receipt of any such notice, deposit with the C,tj
the amount of funds specified in the notice and shall authorize the
City and to disburse such -Funds prior to disbursement of any
additional proceeds of the Bonds
Section 3.8. Application of ?roiect Fund Balance. Any amounts
remain'ng in the Project >="und upon completion of the Housing
Improvements shall be applied '" accordance with Section 3.9
her-eof.
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Section 3.9. ,A,pplication of Fee Revenues Balance. In the event
that, (i) any balance remains in the Project Fund upon the final
disbursement therefrom for costs of the Housing Improvements, or
(i i) at any time before the Maturity Date the City has avai lable to
it Fee Revenues (excluding the proceeds of any refunding Bonds) in
the amount sufficient to redeem or defease the Bonds in advance of
their maturity, as determined by the City's Financial Advisor~ the
City may, in its sole discretion: .
(a) apply such excess Fee Revenues or Project Fund balance to
redeem or defease all or any portion of the Bonds; or
(b) by resolution of the Council, specify additional housing
improvements (as defined in the Enabling Ordinance) .and transfer
all or any port ion of such excess Fee Revenues or Project Fund
ba 1 ance, as t he case may be, in t he amount of t he cost of such
improvements into a project fund (the "Supplemental Project Fund").
Amounts in the Supplemental Project Fund shall be disbursed to the
Association to pay the cost of the housing improvements speiif~ed
by the City, in accordance with all the disbursement procedures 5et
forth in Sections 3.2. through 3 6 hereof; or
(c) by resolution of the Council, disburse all or any portion
of such excess Fee Revenues or Project Fund balance, as the case
may be, to the Association for deposit into the replacement fund
maintained by the Association (the "Replacement Reserve Fund"). The
Association shall establish and maintain a separate subaccount in
the Replacement Reserve Fund (the "Excess Revenue Subaccount") in
which excess Fee Revenues or any Project Fund balance deposited
h e r- e u n d e r , tog e the r wit h i n t ere s tea r n i n g s the reo n , s h a lib e
maintained. Amounts in the Excess Revenue Subaccount of the
Replacement Reser-ve Fund shall be expended only for housin':::J
improvements (as defined in the Enabling Ordinance) that ars
selected by the Association; provided that before making any
disbursement of fund's from the Excess Revenue Subaccount, tne
Association shall submit written plans and cost estimates for such
housing improvements tCl the City Building Official, which pians
shall be deemed approved unless rejected in writing by the City
8u~:ding Official within 30 days after receipt thereof;
i~ d )
by resolution of the Council,
or Project Fund balance into He
deposit such e;.:cess
Administrative cund,
,.ee
Reser\/es
, \
~ e j
any combination Oi paragraphs
( a ) ,
( b ) l
(e), and
, ,..... i
\ '...... /
above.
Any ba1ance remaining 1r' the Supplemental Pr-oject f:'und ; 'i an,
aft e ( 0 a, :IH:: ,', t C f a I I Sup ole men t a 1 H 0 U sin g Imp t- 0 v em e n t s, and any
; 4.
"..
balance remaining after the Maturity Date in the Bond Fund, the
Pro j e c t Fun d 0 t- any 0 the r fun din tow h i c h Fee Rev e n u e s h a v e bee n
deposited shall be transferred by the City to the Association for
deposit into the Excess Revenue Subaccount of the Replacement
Reserve Fund. Expenditures from the Excess Revenue Subaccount
shall be subject to the conditions described in clause (b) above.
All covenants and obligations of the Association under this Section
shall survive the Maturity Date. -
Section 3.10. Special Reserve Fund. Bond proceeds 111 the
amount of shall be deposited in a Special
Reserve Fund maintained by the City. The Special Reserve Fund shall
be invested as directed by the City and disbursed in accordance
with this Sectlon 3.10 for the following uses:
(a) To transfer to the Bond Fund the amount of any deficiency
described in Section 6.6(a) in the event the Association fails to
timely pay such deficiency, provided that such transfer shall not
COil S tit ute a cur e 0 f s u c h Eve n t 0 f De f a u I tan d the Ass 0 cia t j 0 n
remains obligated to pay such amount to the City within the cure
period described in Section 7.2 ~ereof;
(b) To make any payment necessary to cure any Event of Default
as provided in Section 7.2, provided that such payment shall not
constitute a cure of any Event of Default and the Association
t-emains obl igated to pay such amount to the City within the cure
period described in Section 7.2 hereof;
(c) To disburse to the City the cost of the City's consultant
described in Section 6.3(a) in the event the Association fails to
timely pay such cost, provided that such disbursement shall not
constitute a cure of such Event of Default and the Association
remains obligated to pay such amount to the City within the cure
period described in Section 7.2 hereof.
Sect ion 3.11. Investment of Speci a1 Reserve Fund. Moneys
the S pee i a 1 Res e r v e Fun d s h all be i n v ~ ,s t e d and rei n v est e d by
City in Permitted Investments.
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S e c t ion 3. 1 2. R e po r t B y C i t y . i n e C i t y s h all ann u all yon 0 "
before each June 30 provide the Association with a written
st at ement regard i ng the st at us of t he Bond f='und, Admi n i st rat i ve
Fund and Special Reserve Fund and any other funds related to the
Housing Improvement, including but not limited to the principal
balance, interest earned during the prior twelve (12) months and
t ~; e tot a 1 b a 1 a Ii C e all a S 0 f the p r i 0 r D e c em b e r 3 1 .
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ARTICLE IV
, .
Construction of Housing Improvement
Section 4.1. Construction of Housing Improvements. The
Association agrees that it will construct the Housing Improvements
on. the Property in accordance with the approved Construction Plans
and at all times prior to the Maturity Date will operate and
maintain, preserve and keep the H00sing Improvements or cause the
Housing Improvements to be maintained, preserved and kept with the
a p pur ten an c e san d eve r y p a " tan d par c e 1 the reo f, i n goo d r e p air and
condition, all in accordance with Article VI hereof.
Section 4.2. Construction Plans.
(a) Before issuance of the Bonds, the Association shall submit
the Construction Plans to the City Building Official, who shall
review such plans on behalf of the City. The Construction Plans
shall provide for the construction of the Housing Improvements, and
shall be in conformity with this Agreement, and all applicable
State and local laws and regulations. The City Building Official
will approve the Construction Plans in writing if: (i) the
Construction Plans conform to the terms and conditions of this
Agreement; (ii) the Construction Plans conform to all applicable
federal, state and local laws, ordinances, rules and regulations;
(iii) the Construction Plans are adequate to provide for
construction of the Housing Improvement; and (iv) no Event of
Default has occurred. No approval by the City Building Official
shall relieve the ,A.ssociation of the obligation to comply with the
terms of this Agreement, applicable federal, state and local laws,
ordinances, rules and regulations, or to construct the Housing
Improvements in accordance therewith. No approval by the City
Building Official shall constitute a waiver of an Event of Default.
If approval of the Construction Plans is requested by the
Association in writing at the time of submission, such Construction
Plans shall be deemed approved unless rejected in writing by the
City Building Official, in whole or in part. Such t-ejections shall
set forth in detail the reasons therefore, and shall be made within
30 days after the date of their receipt by the City Building
Official. If the City Building Official rejects any Construction
Plans in whole or in par;:, the ,4.ssociation shall submit new or
corrected Construction Plans within 30 days after written
notification to the Association of the rejection. The provisions
of this Section relating to aoor-oval, rejection and resubmission of
co ,- 1- e c t e d Con s t r u c t ion P 1 an s s h all con tin u e t 0 a p ply un t i I the
Con s t ,'U c t ion P I an s h a v e bee nap pro v e d b y the C i t Y B u i I din 9
Official. The City Building Official's approval shall not be
ut!reasonably withheld, Said 2pproval shall constitute a conclusive
determination that the Construction Plans (and the Housing
1 6
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Improvements, constructed in accordance with said plans) comply to
the City Building Official's satisfaction with the provisions of
this Agreement relating thereto. '-
(b) If the Association desires to make any material change in
the Construction Plans after their approval by the City Building
Official, the Association shall submit the proposed change to the
City Bui lding Official for approval. For the purposes of this
Section, a "material change" means any change that (i) increases or
decreases the total cost of the Housing Improvements by more than
$10,000, or (~i) involves any change in construction materials or
design that reasonably requires review for compliance with state
and local law and regulations. If the Construction Plans, as
modified by the proposed change, conform to the re-Quirements of
this Section 4.2 of this Agreement with respect to such previously
approved Construction Plans, the City Building Official shall
approve the proposed change and notify the Association in writing
o fit sap pro val, S u c h c h an g e i nth e Con s t r u c t i on P 1 an s s h all, i n
any event, be deemed approved by the City Building Official unless
rejected, in whole or in part by written notice by the City
Building Official to the Association, sett,ing forth in detail the
reasons therefol-. Such rejection shall be made within ten (10)
days after receipt of the notice of such change. The City Building
Official's approval of any such change in the Construction Plans
will not be unreasonably withheld.
Section 4.3. Commencement and Completion of Construction.
Subject to Unavoidable Delays, the Association shall complete the
con s t r u c t ion 0 f the H 0 u sin g Imp r 0 v em e n t b y \5:-1, S. \
1998. All work with respect to the-Housing Improvements to be
constructed or provided by the Association on the Property shall be
substantially in conformity with the Construction Plans as
submitted by the Association and approved by the City.
The Association agrees for itself, its successors and assigns
and every successor in interest to the Property, or any part
the " eo f, t hat the Ass 0 cia t ion, and s u c h s u c c e s so ran d ass i 9 n s ,
shan promptly begin and diligently prosecute to completion 7'hi='
construction of the Housing Improvements thereon, and that suer
construction shall in any event be commenced and completed within
the period specified in this Section 4.3 of this Agreement. Unt"
conStruction of the Housing Improvements has been completed, :ne
4ssociation shall make reports, in such detai' and at such times as
~ay ~easonably be requested by the City as to the actual orcaress
of the Association with respect to such construction.
Sect~cr: L.~.
Certification of Completion.
(a) D~-ornp~:.I/ after substantial completion of the Hous~~"'19
I~pr'ovements in accordance with those provisions of the Agreement
17
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relating solely to the obligations of the Association to construct
the Housing Improvements (including the dates for beginning and
completion thereof).:th~ City will furnish the Association with an
appropriate instrument so certifying. Such certification by the
City shall be a conclusive determination of satisfaction and
termination of the agreements and covenants in the Agreement with
respect to the obligations of the Association, and its successors
and assigns, to construct the Housing Improvements and the dates
for the beginning and completion thereof. Such cert:;~ation and
such determination shall not constitute ev';cJence of compliance with
or satisfaction of any obligatic' sf the Association under Article
VI hereof.
(b) the certificate ,:;ovided for in this Section 4.4 of this
Agreement ~-;:::.' 1 be in such form as wi 11 enable it to be recorded in
the prop~- office for the recordation of deeds and other
instruments pertaining to the Property. If the City shall refuse
o 1- f ail top r 0 v ide any c e r t i f i cat ion i n a c cor d a n c e wit h the
provisions of this Section 4.4 of this Agreement, the City shall,
within thirty (30) days after written request by the Associati~n,
provide the Association with a written statement, indicating in
adequate detail in what respects the Association has failed to
complete the Housing Improvements in accordance with the provisions
of the Agreement, or is otherwise in default, and what measures or
acts it will be necessary, in the opinion of the City, for the
Association to take or perform in order to obtain such
certification.
(c) The construction of the Housing Improvements shall be
deemed to be substantially completed as determined by the City
8 u i 1 din g 0 f f i cia 1, who m a-y ex e cut e the c e r t i f i cat e 0 f com p let ion 0 n
behalf of the City.
ARTICLE V
Insurance
Sect ion 5. 1 . Insurance.
(a) The Association will provide and ma1nta.n or cause to be
provided and maintained at all times during the process of
con s t 1- U c tin 9 the H 0 us i n g Imp r 0 v em en t san All R i s k 8 r 0 ad For m 8 as i s
Insurance Policy and, from time to time during that period, at the
request of the City, furnish the City with proof of payment ~-
premiums on policies covering the following:
(i) At any time that constl-uction is ta';,ing place at the
Property, Builder's risk insurance, written on the so-called
"Buildel-'s Risk - Completed Value Basis," in an amount equa1
18
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to One hundred percent (100%) of the insurable value of the
Housing Improvements at the date of completion, and with
coverage available in nonreporting form on the so-called "all
risk" form of policy provided that the Association need not
provide such insurance at any time that the Association's
existing hazard insurance pol icy provides coverage equivalent
to the builders risk insurance coverage. The interest of the
City shall be protected in aC'cordance with a clause in form
and content satisfactory to the City;
(ii) Comprehensive general liability insurance (including
Operations, contingent liabil ity, operations of
subcontractors, completed opet-ations and contractual liability
insurance) together with an Owner's Contractor',~ Policy with
limits against bodily injury and property damage of not less
than $1,000,000 for each occurrence and $2,000,000 in the
aggregate (to accomplish the above required limits, an
umbrella excess liability policy may be used); and
(iii) Workers'
Contractors.
compensation
insurance provided by
all
.
(b) Upon completion of construction of the Housing
Improvements and prior to tho Maturity Due, the Association shall
maintain, or cause to be maintained, at its cost and expense, and
from time to time at the request of the City, shall furnish proof
of the payment of premiums on, insurance as follows:
(i) Insurance against loss and/or damage to the Property
and the Housing Improvements under a policy or policies
covering such risks as are ordinarily insured against by
similar businesses.
(ii) Comprehensive genet-al public liability insurance,
including personal injury liability (with employee exclusion
deleted), against liability for injuries to persons and/or
property, in the amount for each occurrence and for each year
of $1,000,000, and shall be endorsed to show the City as
additional insured.
( i i i ) S u c hot her ins u ,- a n c e , i n c 1 u din g w 0 r k e r s '
compensation insurance respecting all employees of the
Association, in such amount as is customarily carried by like
organizations engaged in '~~e activities of comparable size
and liability exposure; p'-o'/ided that the Association may be
s elf - ins u red '/I i t h t- e s pee t t 0 all 0 r- any par t 0 fit s 1 i a b i 1 i t Y
for- wOI-ket-s' compensat: i.Jri.
< a
, -
'"
(c) All insurance required in Article V of this Agreement
shall be taken out and maintained in responsible insurance
companies selected by the Association which are authorized under
the laws of the State to assume the risks covered thereby. Upon
1- e que s t, the Ass 0 cia t ion w ill de po sit ann u all y wit h the C i t y
policies evidencing all such insurance, or a certificate or
ce~tificates or binders of the respective insurers stating that
such insurance is in force and effect. Unless otherwise provided
in this Article V of this Agreement each policy shall contain a
provision that the insurer shall not cancel nor modify it in such
a way as to reduce the coverage provided below the amounts required
herein without giving written notice to the Association and the
City at least thirty (30) days before the cancellation or
modification becomes effective. In lieu of separate policies, the
Association may maintain a single policy, blanket or umbrella
policies, or a combination thereof, having the coverage ~equired
hel-ein, in which event the ,ussociation shall deposit with the City
ace i- t i f i cat e 0 ~ ::. e r t i fie ate s 0 f the res p e c t i ve ins u r e r S as tot he
amount of coverage ill force upon the Housing Improvements.
(d) The Association agrees to notify the City immediately in
the case of damage exceeding $100,000 in amount to, or destruction
of, the Property, the Housing Improvements or any portion thereof
resulting from fire or other casualty. In such event the
Association will forthwith repair, reconstruct and restore the
Housing Improvements to substantially the same or an improved
condition or value as it existed prior to the event causing such
damage and, to the extent necessary to accomplish such repair,
reconstruction and restorations the Association will apply the Net
Proceeds of any insurance relating to such damage received by the
Association to the payment or reimbursement of the costs thereof.
The Association shall complete the repair, reconstruction and
restoration of the Housing Improvements and the Property, whether
or not the Net Proceeds of insurance received by the Association
f 0 1- sue }~ pur po s e s are s u f f i c i e n t top a y for the sam e . Any ~'~ e t
cl-oceeds remaining after completion of ' such repairs, construction
and restoration shall be the property of the Association.
(e) The Association
"nsurance p~ovisions set
upon the ear-liel- of the
':'9 (sement .
and the City agree that all ~, the
forth in this Article V shall ter~inate
MatlH"ity Date or termination 01' 1''''''-
Sect10n 5,2. Subordination. Notwithstanding anything to the
contrary contained in this Article V, the rights of the City wi:~
I-espect to the ,-ec.eipt and application of any proceeds of ii'sUJ-anc2
shall, in all respects; be subject and subordinate to the r-~chts --
any 1 end e,- h old i n g a m 0 r t gag eon a H 0 u sin gUn it.
20
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ARTICLE VI
Special Covenants
Section 6.1
Indemnification.
No Warranty of Condition or Suitability
(a) The City does not make any warranty, either express or
implied, as to the design or capacity of the Housing Improvements,
as to the suitability for Operation of the Housing Improvements or
that they will be suitable for the Associations purposes or needs.
The Association releases the City from, agrees that the City shall
not be liable for, and agrees to hold the City, its Council and its
respective officers and employees, harmless against any claim,
c au s e 0 f act ion, sui tor 1 i a b i lit y for any I 0 s S 0 r d am age to
p'-operty or any injury to or death of any person that may be
o c cas ion e d b y any c au sew hat so eve I' per' t a i n i n g tot h e H 0 u sin g
Improvements or the P t- 0 per t yo r the use thereof.
.
(b) The Association further agrees to indemnify and hold
harmless the City its officers and employees, against any and all
'osses, claims, damages or liability to which the City its officers
and employees, may become subject under any law arising out of any
act, omission, representation or misrepresentation of the
Association in connection with the issuance and sale of the Bonds
and the carrying out of the transactions contemplated by this
Agreement, and to reimburse the City, its officers and employees,
for any out-of pocket legal and other expenses (inclUding
reasonable attorney fees) incurred by the City, its officers and
employees, in connection with investigation of any such losses,
claims, damages or liabilities or in connection with defending any
actions relating thereto. The City agrees, at the request and
e ?: pen s e 0 f the Ass 0 cia t ion, t 0 coo per ate i nth e m a kin g 0 fan y
investigation in defense of any such claim and promptly to assert
any or 2'111 of the rights and privileges and defenses which may be
a '. all a b 1 e tot h e C i t Y . The pro vis ion s 0 f t his S e c t ion s h all
3,; ,'v, 'v' e t he payment and red em p t i on of t he Bonds.
(e) All covenants, stipulations, promises, agreements and
obligations of the City contained herein shall be deemed to be the
c 0 'y' e n 3. n t s, s tip u I a t ion s, pro m i s e s, a g r e em e n t san d 0 b 1 i gat ion s 0 f
-::":e City and not of any governing body member, officer, agent,
S 8r van t or em p 1 0 Y e e of t he C i t y i n t he i n d i v i dual cap a c i t Y t he reo f .
Section 6.2. ~inancial Statements. The Association agrees to
;: u ,- ,! ish tot he C i t y, by no 1 ate r t h an 1 20 day s aft e r the end 0 f
8 a (~i :::- i s c a lYe a", beg inn i n g wit h F i s c a lYe a r 1 9 9 7, u n t i I the 1 ate ,-
of the Maturity Date and the date an excess Fee Revenues and
21
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Project Fund balance, if any, have been expended in accordance with
Section 3.9 hereof; a copy of the annual audited financial
statements of the Association for the preceding Fiscal Year,
including a balance sheet and operating statements, audited by an
Independent certified public accountant. Such financial statements
shall be accompanied by a separate written statement from such
Independent certified public accountant preparing such report that
such I ndependent account ant has obt a i ned no knowl edge of any
default by the Association in the fulfillment of any of the terms,
covenants, provisions or conditions of this Agreement or if such
accountant shall have obtained knowledge of any such default the
ac.countant shall disclose in such statement the default and the
nature thereof, but such accountant shall not be liable directly or
indirectly to any party for failure to obtain knowledge of any
default the Association and the City agree and understand that
compliance with this Section constitutes compliance with Section
1.807 of the Enabling Ordinance,
Section 6. 3 . Financial Plan: Annual Reports. The Ass 0 cia ti, 0 n
agrees to fur n ish to t he C i t Y , by no 1 at e r than 1 2 0 days aft e r t he
end of each Fiscal Year until the later of the Maturity Date and
the date all excess Fee Revenues and Project Fund balance, if any,
have been expended in accordance math Section 3.9 hereof:
(a) an updated Financial Plan for the Property prepared by a
Management Consultant acceptable to the City, in substantially the
form of the Financial Plan dated , 1998, and
p t- 0 v i din g p 1 an s for cap ita 1 imp r 0 v em e n t s tot h e Pro per t y and
projected Association dues through the Maturity Date. The updated
Financial Dlan shall include a schedule for the replacement
reserves required to maintain the Common Areas and the other
portions of the Property which the Association is obligated to
maintain pursuant to the Declaration. The Financial Plan shall
also include the proposed increases in assessments payable by
Owners of the Housing Units. The City shall have thirty (30) days
after receipt to approve or- reject the updated Financial Plan,
w h i c hap pro val s h all not b e u n t- e a son a b 1 y wit h h e 1 d 0 r den i e d . I f
the City rejects the updated Financial Plan the City shall give
'II :" i t ten rea son s for the ( e J e c t ion tot he Ass 0 cia t ion and the
Association shall submit a '-evised updated Financial Plan to the
City which the City shall review and approve or reject within ten
(10) days. The above procedu'-e shall be followed until the City
approves the updated Financia; Plan, provided that if the City
reasonably withholds its approval and does not approve a updated
:=:inancia1 Plan within Sil (6) months the Citj may engage a
~onsultant to prepare an updated :::inancial Plan and the Association
~; h all rei m b u t- set h e C i t Y f n ,- r 0:: a s c nab 1 e c 0 S t sin cur red b y the
"~o n '; U 1 tan till the pre par at ion 0:: the up d ate d Fin an cia 1 P 1 an.
22
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(b) a written report by an Independent engineer describing the
physical condition of the Property and the Housing Improvements as
of the end of the preceding Fiscal Year, with detail sufficient to
enable the City to evaluate compliance with the Financial Plan, the
Reserve Plan and the Association's obligations under this
Agreement.
(c) a written report regarding the status of qualifying for
FHA/HUD insurance for the Housing Units in accordance with Section
6.14 hereof, the expected date for approval, if known, and any
known impediment to obtaining such qualification.
(d) Evidence of compliance with Section 6.15 including a copy
of the written contract or agreement with the property manager and
the property manager's resume.
Section 6.4. Records and Inspection. The Association shall
maintain (i) copies of federal, state, municipal and other licenses
and permits obtained by the Association relating to the operatjon
of the Property and the Housing Improvements, (ii) financial books
and r e cor d S t- e fie c tin g the 0 per at ion s 0 f the Pro per t y and the
Housing Improvements, and (iii) all other documents, instruments,
reports and records required by any provision of this Agreement or
the Financial Plan or by law relating to the Property or the
affairs of the Association. The City shall have the right to
inspect all such materials, except any materials made private or
confidential by federal or state law or regulation, and the
?roperty at all reasonable times and to make such copies and
extracts as it may desire. At the request of the City the
Association shall furnish to the City, at the Association's
e/pense, a copy of any such materials which are t-equired by the
City in the performance of its duties under this Agreement, the
En a b 1 i n 9 0 t- din an c e, the Fee Res 0 1 uti 0 nor the Act.
Section 6.5. Maintenance of ?rooerty. The Association agrees
that so long as the Bonds a,-e outstanding, the Association will
keep or cause to be kept the Property and the Housing Improvements
il' good repair and good operating condition at its own cost. The
":'ssociation shall make all repairs, replacement, and improvements
to the Property specified in the Financial Plan, as such plan may
be amended in accordance with Section 6.3 hereof.
S e c t ion 6. 6. Co v e n ant toM a i n t a inN e t Rev e n u e s A va i lab 1 e ;- C ,.
Cebt Se'-vice.
(a) In the event that third (30) business days befo;-e (1"/
Payment Date, the Net Revenues Available For Debt Service are c~
wil' be less than 100 percent of the total principal and inter-es:
~...,
c:..::;
.i>
due on the Bonds on such Payment Date, the City will provide
written notice to the Association of such fact and the amount of
the def~ciency. Within 10 days after receipt of such notice of
deficiency in Net Revenue Available for Debt Service, the
Association shall be liable for and shall pay the City such
deficiency. Failure on the part of the City to provide the notice
of the deficiency at the time specified herein shall not relieve
the Association of its obligation to make the required payment 10
days after the actual notice of the deficiency is provided by the
City to the Association. Failure on the part of the Association to
make the required payment under this Section within 10 days after
receipt of notice thereof shall entitle the City to exercise its
t-emedies undet. this Agreement, notwithstanding any cure period
provided in Article VII hereof.
(b) In the event that the Association makes any payment to the
City under Section 6.6(a) and, 10 business days before any Payment
Date thereafter the City determines that Net Revenues available for
Debt Service, excluding the amount of all prior payments by the
Association under Section 6.6(a), are at least 100 percent of ~he
total principal and interest due on the Bonds on such Payment Date,
the City shall promptly return to the Association the amount of the
prior payment, without interest thereon provided that the
Association has reimbursed the City for any disbursements made out
of the Special Reserve Fund pursuant to Section 3.10(a), (b) or
(e). Nothing in this Section 6.6(b) shall be construed to relieve
the obligation of the Association to make any payment required
under Section 6.6(a) hereof.
Section 6.7. Assignment of Association Assets.
(a) As security for the Association's obligations under
Section 6.6 hereof, the Association does hereby bargain, sell,
assign and set other unto the City, all the dues, fees and
assessments and over "income of any type (the "Dues") owing to the
Association from owners of Housing Units in the Property, together
with all cash, investments and securities of any type held by the
Association now or hereafter in any operating or reserve accounts
~ the " A c co u n t s" ) . The Due san d A c co u n t s are ,- e fer red t 0
(;ol~ectively as the "Association Assets". This assignment shall
constitute a perfected, absolute and present assignment, provided
-r:nat the Association may, so long as no Event of Default with
respect to Section 6.6 here,of occurs, collect and retain all
Association Assets.
'he provisions
i cen:=.'e in favor of
':-ty's exercise of
hereunder, and shall
thereof.
of this Section 6.7 are intended to be a mere
the Ass 0 cia t ion and a mer e d e fe" :' a ~ 0 f t n e
its per f e c t ed, a b sol ute a n G p " e s e n t ,- i 9 h t s
not be construed to be a futL:re assignment
2.1
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(b) The Association hereby covenants and warrants to the City
that the Association has not executed any prior assignments of any
Association Assets, nor has it performed any act or executed any
other instrument that might prevent the Association from operating
under any of the terms and conditions of this assignment or that
would 1 imit the Association in such operation.
(c) The Association hereby -agrees that, so long as the
Association's obligations under Section 6.6 hereof remain
outstanding the Association will not, without the written consent
of the City, make any other assignment, pledge or other disposition
of any of the Association Assets, or consent in any assignment of
same; and any such acts, if done without the written consent of the
City, shall be null and void.
(d) Upon the occurrence of an Event of Default with respect to
Section 6.6 hereof, the City shall have the right to withdraw funds
from, and liquidate any securities in any Accounts, and collect the
Dues from the owners of Hou'Sing Units, and apply the same for
deposit in the Bond Fund. This assignment shall be binding u~on
the occupants of Housing Units ;.n the Property from the date of
filing by the City in the office or offices where this Agreement is
filed that an Event of Default under Section 6.6 hereof has
occurred and is continuing and service of a copy of the notice upon
the occupants of the Housing Units. The expenses, including any
attorney's fees, reasonably incurred pursuant to the powers herein
contained shall be deemed to be immediately due and payable by the
Association to the City and shall be secured hereby. The City
shall not be liable to account to the Association for any action
taken pursuant hereto other then to account for any Association
Assets actually received by the City.
(e) The City shall not be obligated to perform or dischal-ge,
;lOr does it undertake to perform or discharge, any obligation, duty
or- liability under any agreement between the Association and or
owners of Housing Units in the Property, and the Association hereby
a g t- e est 0 de fen d and i n d em n i f y the C i t, y and h 0 1 d i t h arm 1 e s s f 0 r-
any and all liability, loss or damage'which it mayor might incur
under or by reason of this assignment and from any and all claims
and demands whatsoever which may be asserted against it by reason
of any alleged obligation or undertaking on its part to perform or
discharge any of the terms or covenants contained in any agreement
by and among the Association and the owners of Housing Units in the
Oroperty, except such claims and demands that arise out of the
,0 e 9 1 i g e n ceo r w ill f u 1 m i s con d u c t 0 f the C i t Y , its 0 f fie e 1- s ,
employees and agents. Should the City incur any such liability,
10ss or damage under or by reason of this assignment, or in the
defense against any such claims or demands arising cut of this
2:
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assignment, the amount the,reof, including costs, expenses and
reasonable attorneys' fees; together with interest thereon at the
rat e 0 fin t ere s ton' t he Bon d s, s h all be s e cur e d her e bY' I and the
As so c i at i on s hall rei m bur set he C i t y t he r e fore i mm e d i at e 1 y upon
demand.
(f) In order to facilitate the Association obtaining short-
term financing for the Housing Impr8vements before issuance of the
Bonds, the City agrees to subordinate its rights under this Section
during the period of such short-term financing, subject to such
reasonable terms and cond'itions as the City and the short-term
lender mutually agree in writing.
Section 6.8. Association to Maintain its Existence. The
Association agrees that, so long as the Bonds are outstanding, it
will maintain its existence as a nonprofit corporation under the
laws of Minnesota; will not dissolve or overwise dispose of all or
substantially all of its assets; and will not consolidate with or
merge into another corporation or permit one or more other
corporations to consolidate with or merge into it.
Section 6.9. Prohibition Aqainst Assignment of Agreement. The
Association represents and agrees that prior to the Maturity Date
the Association has not made or created and will not make or create
or suffer to be made Ot- created any total or partial sale,
assignment, conveyance, or any trust or power, or transfer in any
o the t' mod e 0 r f 0 r- m 0 for wit h res p e c t tot he Ass 0 cia t ion's rig h t s ,
interests or obligations under this Agreement or any part thereof,
ora n y con t r- act 0 rag r e em e n t t 0 do any 0 f the sam e, wit h 0 u t the
prior written approval of the City.
Section 6.10. Notice of Fee Upon Transfer of Housinq Units.
The Association agrees that it will use its best efforts to ensure
that ownet-S of each Housing Unit upon which a Fee is imposed under
the Fee Resolution provide notice of the Fee to prospective buyers
or transferees upon any sale or transfer of the Housing Unit. Such
efforts by the Association shall include, but are not limited to
ensuring that Housing Unit owners include a description of the Fee
in a disclosure certificate provided to the purchaser substantially
in the form required by ~.1innesota Statutes, Section 5158.4107
regardless of whether such statute applies to the Housing Unit.
The Ass 0 cia t ion s h a I I am end the De c 1 a rat ion as n e c e s s a r y tor e qui ,- e
the owners of each Housing Unit to provide such disclosure,
Section
6.11. Repair' and Replacement Policy. On or before
: 1998 the Association must adopt a detailed
r'ep1acernent poiicy f",- the Common Area and other
the 8,' 0 P e :- t J 11 Ii i c h t h eD., s so cia t ion i sob I i gat e d t 0
r-epa i rand
port~ons of
26
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maintain pursuant to the Declaration. The repair and replacement
pol icy m u s t b e con s i s ten t wit h the t e r m s 0 f, the De c 1 a rat ion and t 'h e
Declaration must be amended prior to the date set forth above, if
necessary, to conform to the repair and replacement policy. The
repair and replacement policy must detail the division for repairs
and t- e p 1 ace men t bet wee nth e Ass 0 cia t ion and the 0 w n e r s 0 f the
Housing Units.
Section 6.12. Increases in Assessments. The Association agrees
to increase the assessments payable pursuant to the Declaration by
owners of Housing Units by at least ten percent (10%) per year as
permitted by the Declaration until the Assessments are sufficient
in accordance with the Financial Plan to pay the Proiect's current
operating expenses' replacement reserves in accordance with the
approved Financial Plan and any deferred maintenance not otherwise
scheduled to be completed as part of the Housing Improvements. The
Association shall give the City written notice the first time that
the Association intends to increase the assessments by less than
ten percent (10%). Such notice shall be submitted with the updated
;:: i n an cia 1 Plan ill a c cor d an c e wit h S e c t ion 6. 3 ( a) her eo fan dt he
City shall apPt-ove or reject the proposal to reduce or eliminate
the assessments increase in the same manner that the City approves
or rejects the updated Financial Plan provided that the City shall
not unreasonably withhold approval of the Association's decision
regarding assessments.
Section 6.13. Intentionally Omitted.
Section 6.14. FHA/HUD Insurance. ,The Association agrees to use
a : I 1- e a son a b 1 e e f for t s t 0 qua 1 i f y for FHA / H U D m 0 r t gag e ins u ran c e
for the Housings Units. In determining whether to take the steps
necessary to qualify for such insurance the Association may take
into consideration the out-of-pocket costs and administrative costs
that would be incurred in qualifying for such insurance. In no
event shall the Association be required to incur any environmental
testing or remediation costs or to construct any improvements,
c,ther- than the Housing Improvements, to qualify for FHA/HUD
mortgage insurance.
Section 6.15 Experienced Property Manager. So long as the
Bonds are outstanding, the Association agrees to maintain
.. e /, pel. i en c e d p t- 0 f e s s ion alp r 0 per t y man age men t" for the Pro per t y .
= G" P '.Jr' po s e s 0 f t his sub s e c t ion .. e x per i en c e d pro f e s s ion alp r 0 per t y
rn a 'I age men t" s h all mea n a f u 1 1 t; me pro per t y man age r who me e t s the
f () ., 1 01,'j -1 n 9 c r i t e ria :
(i) has at least
m a;1 age men t e ,~ per i en C e s
residential housing;
five years o~ executive property
including experience with multi-unit
27
~
(ii) has experience working with boards and memberShip
organizations;
( i i i) has,' de m 0 n s t rat e d k now led g e 0 f m a i n ten an c e and
construction issues;
(iv) has rlemonstrated knowledge of accounting, financial
reporting, budgeting and related issues; and
(v) does not have an ownership interest in any Housing
Unit and is not the spouse, child, parent or sibling of anyone
who has an ownership interest.
ARTICLE VII
Events of Default
Sect ion 7.1. Events of Default Defined. The following shall_ be
"Events of Default" under this Agreement and the term "Event ,of
Default" shall mean, whenever it is used in this Agreement (unless
the context otherwise provides), any failure by any party to
observe or perform any other covenant, condition, obligation or
agreement on its part to be observed or performed hereunder.
Section 7.2. Remedies on Default. Whenever any Event of
Default ,-eferred to in Section 7.1 of this Agreement occurs, the
non-defaulting party may exercise its rights under this Section 7.2
after providing thirty (30) days written notice to the defaulting
party of the Event of Default, but only if the Event of Default has
not been cur-ed within sa'id thirty days or, if the Event of Default
is by its nature incurable within thirty days, the defaulting party
does not provide assurances reasonably satisfactory to the non-
defaulting party that the Event of Default will be cured and will
be cured as soon as reasonably possible:
(a) Suspend its performance under the Agreement until it
receives assurances that the defaulting party will cure its default
and continue its performance under the Agreement.
(b~ Use any balance in the Special Reserve Fund to cure the
event of Default.
(c) Take whatever- action,
administrative action, which may
collect any payments due under
performance and observance Q~
covenant under this Agreement,
including legal, equitable or
appear necessary or desirable to
this Agreement, or to enforce
any obligation, agreement, or
~'""
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Section 7.3. No Remedy Exclusive. No remedy herein conferred
up 0 nor ,- e s e r v e d tot he C i t y 0 r Ass 0 cia t ion i sin ten d e d t 0 be
exclusive of any oth~r available remedy or remedies, but each and
every such remed~ shall be cumulative and shall be in addition to
every other remedy given under this Agreement or now or hereafter
existing at law or in equity or by statute. No delay or omission to
exercise any right or power accruing upon any default shall impair
any such right or power or shall" be construed to be a waiver
thereof, but any such right and power may be exercised from time to
time and as often as may be deemed expedient. In order to entitle
the City to exercise any remedy reserved to it, it shall not be
necessary to give notice, other than such notice as may be required
in this Article VII.
Section 7.4. No Additional Waiver Implied by One Waiver. In
t he event any ag reement cont a i ned in t his Ag reement shou 1 d be
breached by eith~r party and thereafter waived by the other party,
such waiver shall be limited to the particular breach so waived and
shall not be deemed to waive any other concurrent, previous_ or
subsequent breach hereunder.
ARTICLE VIII
Additional Provisions
Section 8.1. Conflict of Interests: City Representatives Not
Individually Liable. The City and the Association, to the best of
their respective knowledge, represent and agree that no member or
official of the City shall have any personal interest, direct or
indirect in the Agreement, nor shall any such member or official
participate in any decision relating to the Agreement which affects
his pet-sonal interests or the interests of any corporation,
partnership, or association in which be is, directly or indirectly,
interested. No member or official of the City shall be personally
liable to the Association, or any successor in interest, in the
event of any default or breach by the City or for any amount which
may become due to the Association or successor or on any
obligations under the terms of the Agreement.
Se€tion 8.2. Equal Emplovment Ooportunity. The Association,
for itself and its successors and assigns, agrees that during the
con s t r u c t ion 0 f the H 0 us i n g Imp r 0 v em en t s pro v ide d for i nth "'-
Agr-eement it will comply with a'll applicable federal, state and
local equal employment and non-discrimination laws and regulations.
Section 8,3, ol-oviSlons Not Merqed With Deed. None of thp
p,-ovisior':s 0-:' th":3 ~greement are intended to or shall be merged by
29
..
reason of any deed transferring any interest in the Property and
any such deed shall not be deemed to affect or impai r the
provisions and covenants of this Agreement.
Section 8.4. Titles of Articles and Sections. Any titles of
the several parts, Articles, and Sections of the Agreement are
ins e t- t e cJ for con v e n i e n ceo f ref ere n ceo n 1 y and s h all bed i s reg a r d e d
in construing or interpreting any crf its provisions.
Section 8.5. Notices and Demands. Except as otherwise
expressly provided in this Agreement, a notice, demand or other
communication under the Agreement by either party to the other
shall be sufficiently given Ot- delivered if it is dispatched by
registered or certified mail, postage prepaid, return receipt
requested, or delivered personally; and
(a) in the case of the Association, is addr-essed to or
del ivered personally to the Association at
, Attention: an.d
(b) in the case of the City, is addressed to or delivered
personally to the City at 4401 Xylon Avenue North, New Hope,
Minnesota 55428, Attention: Daniel J. Donahue, City Manager,
or at such other address with respect to either such party as that
party may, from time to time designate in writing and forward to
the other as provided in this Section.
Section 8.6. Counterparts. This Agreement may be executed in
any number- of counterparts, each of which shall constitute one and
the sane instrument.
Section 8.7. Recording, The City shall r-ecord this Agt-eement
and any amendments thereto with the Hennepin County Recorder or
Reg i s t t- a r 0 f Tit 1 e s . The Ass 0 cia t ion s h all pay all c 0 s t s for
r-ecording.
Section 8.8. Binding Act. This Agreement sha11 inure to the
benefit of and shall be binding upon the City and the Association
and their respective successors, heirs and assigns.
Section 8.9. Amendment. This Agr-eement may be arnended only by
written agreement of he parties hereto.
IN WITNESS WHEREOF, the City has caused this Agreement to be
au ! y ex e cut e din its name and t he Ass 0 c i at i on has caused t h i3
tl,greement to be duly executed in its name on or as of the date
f i ;- S tab 0 v e w r i t ten ,
30
1/1>
CITY OF NEW HOPE, MINNESOTA
By
Its Mayor
By
Its City Manager
STATE OP MINNESOTA
ss.
COUNTY OF HENNEPIN
The foregoi ng
day of
Daniel J. Donahue,
City of New Hope,
the City.
instrument was acknowledged before me this
, 1998, by W. Peter Enck and
the Mayor and City Manager, respectively, of the
Minnesota, a municipal corporation on behalf of
Notary c
ROCKFORD OWNERS ASSOCIATION
By
Its
By
Its
STATE OP MINNESOTA
ss.
COUNTY OF HENNEPIN
The
foregoing
day of
instrument was aCknowledged b,efore me this
1998, by
and ,
Owners Association, a Minnesota nonprofit
the corporation.
and
, t h,e
respectively, of Rockford
corporation on behalf of
Notary Public
31
I>
SCHEDULE D
DISBURSEMENT REQUISITION OF
ASSOCIATION'S AUTHORIZED REPRESENTATIVE
TO: City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
DISBURSEMENT DIRECTION
The undersigned Authorized Representative of Rockford Owners
Association, a Minnesota nonprofit corporation (the "Association"),
hereby authorizes and request you to disburse from the Project Fund
held by you pursuant to the Development Agreement between the City
of New Hope, Minnesota and Rockford Owners Association, dated as.of
, 1998 (the "'Agreement"), the following amount
to the following person and for the following proper Housing
Improvement cost and purpose:
1 . Amount:
2. Payee:
3. Purpose:
all as defined and provided in said Agreement. The undersigned
further certifies that (i) none of the items for which payment is
proposed to be made has formed the basis for any payment
theretofore made from the Project Fund, and (ii) each item for
which the payment is proposed to be ~ade is or was necessary in
connection with the Housing Improvements, and (iii) the amount of
funds to remain on deposit in the Project Fund following this
disbursement is currently estimated to be sufficient to pay all
future costs of the Housing Improvements.
Dated:
Association's Authorized
Representative
./I>
/- D r -L
~~f\~~~~\~\ \ \{\~ .ti(f-'~~\~
_..~----
HELLMUTH ~ JOHNSON. PA.
ATTORNEYS AT I-"'W
300 CABRIOl-E: CE:NTE:F1
9531 weST 7$...... STREET
EOEN PRAIRIE:, MINNeSOTA 5534~-8006
C.HAO A. ..,.iQHNSON4'
TeLEPHONE
(I!-IZ)S...'-....oos
OAV,O C, H~LLMUTH
BLAKE 1':. Nt!lSON
R, T.....VI$ el'lUNSON
KEVIN W,OE:VO!'lC
WRITER'S E-MAIL ADDRESS
caj@hJliwf1rm,com
FACSIMILE:
(612) 9....1-2337
March 17,1998
Mr. Richard Lilja
All Services Management Company
P.O. Box 16433
Minneapolis, MN 55416-0433
VIA FACSIMILE AND
FIRST CLASS MAIL
Re: Rockford Owners Association
Our File No.: 6209001
Dear Mr. Lilja:
Attached please find the requested opinion letter regarding the Association's intent to
enter into a development agreement with the City of New Hope for improvements in the amount
of $500,000.00, if an opinion letter is necessary for the City of New Hope, I must be provided
with a copy of the intended development agreement and minutes of the Association's Board of
Directors' meeting authorizing its President to enter into said agreement. However, a separate
letter should not be necessary, because the attached opinion letter clearly states that the
Association is a non-profit corporation with authority to sign such a development agreement.
If you have any questions Or comments with regard to the above referenced matter, please
do not hesitate to contact me,
Very truly yours,
CAJ/mss
Ene.
s:c:assn\ltrs\rockfordliljaJ .Itr
"!'lEAL P~O"E:RTY LAW SPECIALIST, CERTIFI{i;C BY TME REAL "'"lO"EI'lTY LAW SE:CTION 01' THE "'"NNo;SOTA STATE: eAR ASSOCIATION
.
HELLMUTH co JOHNSON. PA.
"'TTO~Ne:YS AT I.AW
.300 C~BI'lIOL~ CENTER
~531 WEST 76™ STRe:lO;T
EDEN PI'lAI~IE, MINNESOTA $534....-aooe
c::......O"", .JOHN$ON.
O"'VIO Q, He:~l.MUTH
B~"''''E Fl, NE~!i>ON
~ T"lAVI5 BRUNSON
KEVIN W OEVORe;
TE;Lr:::PHONI;;
(EH2) 941- ....005
WRITER'S E.MAIL AOORESS
caj@hjlawf1rm.coe
F""'CSIMI~e:
(512) 941-2337
March 17,1998
Mr. Richard Lilja
All Services Management Company
P.O. Box 16433
Minneapolis, MN 55416-0433
VIA FACSIMILE AND
FIRST CLASS MAIL
Re: Rockford Owners Association
Our File No.: 6209001
Dear Mr. Lilja:
As you are well aware, the above captioned law firm represents Rockford Owners
Association, a Minnesota non-profit corporation (the "Association"), in connection with various
matters, including the execution of a development agreement with the City of New Hope for
$500,000.00 in improvements to the Association. At your request, r have examined the Articles
of Incorporation for Rockford Owners Association dated May 25, 1997, the Certificate of
Incorporation issued by the Minnesota Secretary of State dated June 7, 1997, the Amendment to
the Articles of Incorporation dated March 10, 1997, the By-Laws of Rockford Owners
Association dated Apli! 10, 1978, and the Declaration of Covenants, Conditions and Restrictions
dated April 10, 1978 (herein referred to collectively as the "Governing Documents"). Based on
my examination of the Governing Documents, it is my opinion that:
1. The Association is a non-profit corporation, which is duly organized, validly
existing and in good standing under the laws of the State of Minnesota and has all
reqlLisite authority to execute, deliver and pcrfonn the intended agreement with
the City of New Hope, and such execution, delivery and p~rfonnance are within
the corporate powers of the Association, acting by and through its Board of
Directors.
2. This opinion is subject to the following qualifications:
a. Enforcement of the rights and remedies set forth in the above mentioned
documents may be limited by bankruptcy, liquidation, insolvency,
arrangement, moratorium, reorganization, or other similar laws of general
application relating to or affecting creditors' rights and remedies
thereunder.
'RE:A~ P~OPE~TY ~...w S"E:eIA~IST. ceRTIFIEO e.... THE OlE..... PROPERTY l....W SE:CTION Of' ....HE MINNE50,.... STATE liI...R ASSOCI",TION
Mr. Richard Lilja
March 17, 1998
Page 2
b. Enforcement of the rights and remedies under the above mentioned
documents will be subject to general principles of equity regardless of
whether they are considered in a legal or equitable form.
c, This opinion is limited to the laws of the State of Minnesota and of the
United States of America, as enacted and in effect as of the date hereof.
d. This opinion is rendered to the addressee hereof on behalf of the
Association for its sole and exclusive benefit. This opinion may not be
relied upon by any other person or entity without our specific prior written
consent.
Very truly yours,
CAJ/mss
s: c: assn \1 tIs\rockfordli b a.1 tr
RESERVE ANALYSIS STUDY
Rockford Owners Association
New Hope, Minnesota
Account 102 - Version 004
March 17, 1998
Report Prepared By
Resrve Data Analysis
1409 Osborne Road NE
Spring Lake Park, Minnesota 55432
(612) 780-7943
--
RESERVE DATA ANAlysis ..- MiNNEApolis
-ltll~1
1409 Osborne Road Northeast - Spring Lake Park, Minnesota 55432
Office (612) 780-7943 Cellular (612) 616-4817
Ernail: pettersen@prodigy,corn
-
March 17, 1998
Dear Rockford Owners Association Board:
Enclosed is the completed RDA REPORT for the year beginning Oct. 1 1998. This report
has been calculated using two different computational processes: RDA Segregated Calculation
Process, and Cash Flow Analysis.
Pages 2-1 through 2-22 provide a summary based on the RDA Segregated Calculation Process
and accompanying 30 year projections. The monthly 'per unit' contribution to reserves required.
under this method is $114.07. This calculation process is the most conservative of the two
methods and assures that the association will achieve and maintain an ideal level of reserves over
time. This method also allows for computations on individual components in the analysis, and
provides for a contingency factor. Graphs precede page 2-1.
Pages 2-23 and 2-24 provide a summary based on a Cash Flow Analysis and accompanying 30
year projections. The initial monthly 'per unit' contribution to reserves suggested under this
method is $59.50. This method sets up a "window" in which all future anticipated replacement
costs are computed, based on the individual lives of the components under consideration. The 30
year projections illustrate the association's progress under this analysis. This cash flow analysis
is generally recommended over the other method in cases where an association is severely
underfunded. Graphs precede page 2-23.
The four graphs following this page show a comparison of the two methods over a 30 year period.
We hope that you find our report format both informative and useful. Should you desire, any or all
of the parameters and data used in your reserve study may be changed and a revised study
prepared. All of us at RDA have enjoyed serving you and providing with the most detailed,
comprehensive and useful reserve analysis study available. If you have any additional questions
or comments, please feel free to call us.
Thank you.
~,IY'~, .~
~7U ,~
Gregory L. Pettersen
President
~ RESERVE ANAlYSiS STudiES ~ SETTlEMENT SOlUTiON SERViCES lM~
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TABLE OF CONTENTS
PART I - INTRODUCTION
THE RESERVE BUDGET
preparing the Budget ............................ 1-1
Determining Expenses.....~...................... 1-1
Preparing the Reserve Study ..................... 1-3
Methods for Allocating Reserves ................. 1-4
Distribution of Accumulated Reserves............ 1-4
USING YOUR RESERVE ANALYSIS STUDY
User's Guide to Your Reserve Analysis Study..... 1-6
Definitions ..................................... 1-7
A Multi-Purpose Tool ............................ 1-10
PART II - RESERVE ANALYSIS STUDY
Report Summary ....................................... 2-1
Distribution of Accumulated Reserves ................. 2-2
Asset Listing/Summary by Category.................... 2-3
RDA Standard Projections ............................. 2-4
Annual Expenditure Detail ............................ 2-5
Detail Report by Category ............................ 2-9
Detail Report Index .................................. 2-22
Cash Flow Specific Summary of Calculations ........... 2-23
Cash Flow Specific Projections ....................... 2-24
PART III - APPENDIX
NOTES ................................................ 3 -1
PART I
INTRODUCTION
preparing the annual budget and overseeing the
association's finances are perhaps the most important
responsibilities of board members. The annual operating
and reserve budgets reflect the planning and goals of
the association and set the level and quality of service
for all of the association's activities.
A. The Reserve Budget
1. preparing the Budget
The association's budget consists of two basic parts, income and
expenses. In our personal lives, most of us usually start by
considering income. We take our income, pay our bills, and spend
or save the remainder. While this may work well for personal
finances, budget planning for a community association needs to
take other factors into consideration as well.
When preparing the association's budget it is wise to begin with
expenses. This allows for an objective statement of needs before
determining the sources of income. After the expenses are
identified and quantified, ideal expectations may then be weighed
against practical considerations and a balanced budget may be
prepared.
2. Determining Expenses
The budget process begins with an accurate inventory of all the
major components for which the association is responsible. The
determination of whether an expense should be labeled an
operational expense, a reserve expense, or excluded altogether is
sometimes subjective. Since this labeling may have a major
impact on the financial plans of the association, subjective
determinations should be minimized. We suggest the following
considerations when labeling an expense:
PAGE 1 - 1
OPERATIONAL EXPENSES occur at least annually, no matter how large
the expense, and can be effectively budgeted for each year. They
are characterized as being reasonably predictable both in terms
of frequency and cost. Operational expenses include all minor
expenses which would not otherwise adversely affect an
operational budget from one year to the next. Examples of
Operational Expenses include:
Utilities:
Services:
Electricity
Gas
Water
Telephone
Cable TV
Landscaping
Pool Maintenance
Street Sweeping
Accounting
Reserve Study
Administrative:
Repair Expenses:
Supplies
Bank Service Charges
Dues & Publications
Licenses, Permits & Fees
Tile Roof Repairs
Equipment Repairs
Minor Concrete Repairs
operating Contingency
RESERVE EXPENSES are major expenses that occur other than
annually and which must be budgeted for in advance in order to
provide the necessary funds in time for their occurrence.
Reserve expenses are reasonably predictable both in terms of
frequency and cost. However, they may include significant assets
which have an indeterminable but potential liability which may be
demonstrated as a likely occurrence. They are expenses that when
incurred would have a significant effect on the smooth operation
of the budgetary process from one year to the next if they were
not reserved for in advance. Examples of Reserve Expenses
include:
Roof Replacements
Painting
Deck Resurfacing
Fencing Replacement
Street Slurry Coating
Asphalt Overlays
Pool Re-plastering
Pool Equipment Replacemnt
Pool Furniture Replacemnt
Tennis Court Resurfacing
Park & Play Equipment
Equipment Replacement
Interior Furnishings
Lighting Replacement
PAGE 1 - 2
BUDGETING IS NORMALLY EXCLUDED FOR repairs or replacements of
assets which are deemed to have an estimated useful life equal to
or exceeding the estimated useful life of the facility or
community itself, or exceeding the legal life of the community as
defined in an association's governing documents. Examples
include the complete replacement of elevators, tile roofs, wiring
and plumbing. Also excluded are insignificant expenses which may
be covered either by an operating or reserve contingency, or
otherwise in a general maintenance fund. Costs which are caused
by acts of God, accidents or other occurrences which are more
properly insured for, rather than reserved for, are also
excluded.
3. Preparing the Reserve Study
Once the reserve assets have been identified and quantified,
their respective replacement costs, useful lives and remaining'
lives must be assigned so that a funding schedule can be
constructed. Replacement costs and useful lives can be found in
published manuals such as construction estimators, appraisal
handbooks, and valuation guides. Remaining lives are calculated
from the useful lives and ages of assets and adjusted according
to conditions such as design, manufacture quality, usage,
exposure to the elements and maintenance history.
Certain calculations must be performed on the compiled data in
order for the study to take on a practical meaning. Several
methods have been developed, ranging from simple to complex. The
least complicated method is the straight-line approach in which
the replacement cost in today's dollars, less accumulated
reserves, is divided by the estimated remaining life of the
components. The most precise calculations, determine the
replacement cost in future dollars and include provisions for
interest on invested funds, net of taxes, and planned
contribution increases each year in line with cost of living
changes in addition to efficient distribution of the accumulated
reserves.
By following the recommendations of an effective reserve study
the association should avoid any major shortfalls. However, to
remain accurate, the report should be updated on an annual basis
to reflect such changes as shifts in economic parameters,
additions of phases or assets, or expenditures of reserve funds.
The association can assist in simplifying the reserve analysis
update process by keeping accurate records of these changes
throughout the year.
PAGE 1 - 3
4. Methods for Allocating Reserves
There are two methods that are suggested for allocating reserves.
The first method is to allocate the Monthly Membership
Contribution to reserves each month~ When interest is earned on
the reserves, that interest must be left in reserves and only
amounts set aside for taxes should be removed.
The second method is to allocate the Net Monthly Allocation to
reserves (this is the member contribution plus the anticipated
interest earned for the fiscal year). This method assumes that
all interest earned will be assigned directly as operating
income. This allocation takes into consideration the anticipated
interest earned on accumulated reserves regardless of whether or
not it is actually earned. When taxes are paid the amount due
will be taken directly from the association's operating accounts
as the reserve accounts are allocated only those moneys net of
taxes.
5. Distribution of Accumulated Reserves
The methods used to determine the ideal level of reserves and
actual distributions for each asset, prior to completing
calculations, are as follows:
The first step is to subtract from the total accumulated reserves
the association has on hand any amounts for assets which have
predetermined (fixed) reserve balances. If by error these
amounts total more than the amount of funds available, then the
remaining assets are adjusted accordingly. A provision for a
contingency reserve is then deducted by the determined
percentage.
The second step is to identify the ideal level of reserves for
each asset. This is accomplished by evaluating the component's
age proportionate to its estimated useful life and current
replacement cost. The equation is
IDEAL LEVEL OF RESERVES = AGE / USEFUL LIFE x CURRENT COST
For example, an asset which is 3 years old, has a useful life of
5 years and current replacement cost of $500, should have
accumulated approximately $300 in reserves.
PAGE 1 - 4
This method of calculating the ideal level of reserves does not
consider future replacement cost, nor interest earned on the
accumulated reserves, as the reports do when calculating the
monthly allocation requirements for future replacements.
However, it is a reliable indicator of the adequacy of the
Client's current reserves, based on current conditions and
replacement cost.
If any assets are assigned a zero remaining life (schedule for
replacement this fiscal year), then the amount assigned equals
the current replacement cost and funding begins for the next
cycle of replacement. If there are insufficient funds available
to accomplish this, then the software automatically adjust the
remaining life to 1 year. '
The next step in this process is to arrange all of the assets
used in the study in ascending order by remaining life. These
assets are then assigned their respective ideal level of reserves
until the amount of funds available are depleted, or until all.
assets are appropriately funded. If at the completion of this
task there are additional monies which have not been distributed,
the remaining reserves are then assigned in ascending order at a
level equal to, but not exceeding, the current replacement cost
for each component. If there are sufficient monies available to
fund all assets at their current replacement cost levels, then
any excess funds are designated as such and are not factored into
any of the report computations.
Assigning the reserves in this manner defers the make-up period
for any underfunding over the longest remaining life of all the
assets under consideration, thereby minimizing the impact of
deficiency.
If at the end of this process there are designated excess funds,
they can be used to offset the monthly contribution requirements
recommended, or used in any other manner the Client may desire.
If the reserves are underfunded, the monthly contribution
requirements as outlined in this report can be expected to be
higher than normal. In future years, as individual assets are
replaced, the funding requirements will return to their normal
levels. In the case of a large deficiency, a special assessment
may be considered. We can easily generate revised reports
outlining how the monthly contributions would be affected by such
an adjustment, or by any other changes which may be under
consideration.
PAGE 1 - 5
B. Your Reserve Analysis Study
1. Users' Guide to Your Reserve Analysis Study
Part II of your report contains the-reserve analysis study for
your association. There are seven types of pages in the study as
described below.
REPORT SUMMARY
The Report Summary lists all of the parameters which were
used in calculating the report as well as the summary of your
reserve analysis study.
INDEX REPORTS
The Distribution of Accumulated Reserves report lists all
assets in remaining life order. It also identifies the ideal
level of reserves which should have accumulated for the
association as well as the actual reserves available.
The Asset Listing/Summary lists all assets by category (i.e.
roofing, painting, lighting, etc.) together with their remaining
life, current cost, monthly reserve contribution, and net monthly
allocation.
DETAIL REPORTS
The Detail Report itemizes each asset and lists all
measurements, current and future costs and calculations for that
asset. provisions for percentage replacements, salvage values
and one-time replacements can also be utilized.
The numerical listings for each asset are enhanced by extensive
narrative detailing factors such as design, manufacture quality,
usage, exposure to elements and maintenance history.
The Detail Report Index is an alphabetical listing of all assets
together with the page number of the asset's detail report and
asset number.
PROJECTIONS AND CHARTS
Thirty-year projections as well as Charts and Graphs of
projected data add to the usefulness of your reserve analysis
study.
PAGE 1 - 6
2. Definitions
REPORT I.D. Includes the REPORT DATE (ex. November 15, 1992),
VERSION (ex. 001), and ACCOUNT NUMBER (ex. 9773). Please use
this information when referencing your report. (Displayed on the
summary page.)
BUDGET YEAR BEGINNING/ENDING The budgetary year for which the
report is prepared. For associations with fiscal years ending
December 31, the monthly contribution figures indicated are for
the 12 month period beginning 1/1/9X and ending 12/31/9X.
NUMBER OF UNITS/PHASES If applicable, the number of units
and/or phases included in this version of the report.
INFLATION This figure is used to approximate the future cost
to repair or replace each component in the report. The current
cost for each component is compounded on an annual basis by the
number of remaining years to replacement and the total is used .in
calculating the monthly reserve contribution which will be
necessary in order to accumulate the required funds in time for
replacement.
ANNUAL CONTRIBUTION INCREASE The percentage rate at which the
association will increase its contribution to reserves at the end
of each year until the year in which the asset is replaced. For
example, in order to accumulate $10,000 in 10 years, you could
set aside $1,000 per year. As an alternative, you could set
aside $795 the first year and increase that amount by 5% each
year until the year of replacement. In either case you arrive at
the same amount. The idea is that you start setting aside a
lower amount and increase that number each year in accordance
with the planned percentage. Ideally this figure should be equal
to the rate of inflation. It can, however, be used to aid those
associations who have not set aside appropriate reserves in the
past by making the initial year's allocation less formidable.
INVESTMENT YIELD The average interest rate anticipated by the
association based upon their current investment practices.
TAXES ON YIELD The estimated percentage of interest income
which will be set aside for taxes.
ACCUMULATED RESERVE BALANCE The anticipated reserve balance
on the first day of the fiscal year for which this report has
been prepared.
PAGE 1 - 7
PHASE INCREMENT DETAIL/AGE Comments regarding aging of the '
components on the basis of construction date or date of
acceptance by the association.
MONTHLY CONTRIBUTION The contribution to reserves required by
the association each month.
INTEREST CONTRIBUTION The interest that should be earned on
the reserves, net of taxes, based upon their beginning reserve
balance and monthly contributions for one year. This figure is
averaged for budgeting purposes.
NET MONTHLY ALLOCATION The sum of the monthly contribution
and interest contribution figures.
GROUP OR FACILITY NUMBER/CATEGORY NUMBER The report may be
prepared and sorted either by group or facility (location,
building, phase, etc.) or by category (roofing, painting, etc.).
Standard report printing format is by category.
PERCENTAGE OF REPLACEMENT In some cases, an asset may not be
replaced in its entirety or the cost may be shared with a second
party. Examples are budgeting for a percentage of replacement of
streets over a period of time, or sharing the expense to replace
a common wall with a neighboring party.
PLACED IN SERVICE The month and year that the asset was
placed in service. This may be the construction date, the first
escrow closure date in a given phase, or the date of the last
servicing or replacement.
ESTIMATED USEFUL LIFE The estimated useful life of an asset
based upon industry standards, manufacturer specifications,
visual inspection, location, usage, association standards and
prior history. All of these factors are taken into consideration
when tailoring the estimated useful life to the particular asset.
For example, the carpeting in a hallway or elevator (a heavy
traffic area) will not have the same life as the identical
carpeting in a seldom used meeting room or office.
ADJUSTMENT TO USEFUL LIFE Once the useful life is determined
it may be adjusted +/- by this separate figure for the current
cycle of replacement. This will allow for a current period
adjustment without affecting the estimated replacement cycles for
future replacements.
ESTIMATED REMAINING LIFE This calculation is completed
internally based upon the report's fiscal year date and the date
the asset was placed in service.
PAGE 1 - 8
REPLACEMENT YEAR The year that the asset is scheduled to be
replaced. The appropriate funds will be available by the first
day of the fiscal year for which replacement is anticipated.
FIXED ACCUMULATED RESERVES An optional figure which, if used,
will override the normal process of allocating reserves to each
asset.
FIXED MONTHLY CONTRIBUTION An optional figure which, if used,
will override all calculations and set the contribution at this
amount.
SALVAGE VALUE The salvage value of the asset at the time of
replacement, if applicable.
ONE-TIME REPLACEMENT
on a one-time basis.
Notation if the asset is to be replaced
CURRENT REPLACEMENT COST The estimated replacement cost
effective as of the beginning of the fiscal year for which the
report is being prepared.
FUTURE REPLACEMENT COST The estimated cost to repair or
replace the asset at the end of its estimated useful life based
upon the current replacement cost and inflation.
PAGE 1 - 9
3. A Multi-purpose Tool
Your reserve study is an important part your association's
budgetary process. Following its recommendations should ensure
the association's smooth budgetary transitions from one fiscal
year to the next, and either decrease or eliminate the need for
"special assessments".
In addition, your reserve study serves a variety of useful
purposes:
Following the recommendations of a reserve study performed by
a professional consultant can protect the Board of Directors in a
community from personal liability concerning reserve components
and reserve funding. '
A reserve analysis study is required by your accountant
during the preparation of the association's annual audit.
A reserve study is often requested by lending institutions
during the process of loan applications, both for the community
and, in many cases, the individual owners.
Your report is also a detailed inventory of the association's
major assets and serves as a management tool for scheduling,
coordinating and planning future repairs and replacements.
Your report is a tool which can assist the Board in
fulfilling its legal and fiduciary obligations for maintaining
the community in a state of good repair. If a community is
operating on a special assessment basis, it cannot guarantee that
an assessment, when needed, will be passed. Therefore, it cannot
guarantee its ability to perform the required repairs or
replacements to those major components which the association is
obligated to maintain.
Since the reserve analysis study includes precise
measurements and cost estimates of the client's assets, the
detail reports may be used to ev~luate the accuracy and price of
contractor bids when assets are due to be repaired or replaced.
The reserve study is an annual disclosure to the membership
concerning the financial condition of the association, and may be
used as a "consumers' guide" by prospective purchasers.
PAGE 1 - 10
Rockford Owners Association
New Hope, Minnesota
Reserve Analysis Report Summary
Report Date
version
March 17, 1998
004
Parameters:
Account Number
102
Inflation
Annual Contribution Increase
Investment Yield
Taxes on Yield
Contingency
3.50%
3.50%
6.00%
0.00%
5.00%
Budget Year Beginning
Ending
11/ 1/98
10/31/99
Total Units Included
Phase Development
36
1 of 1
Reserve Fund Balance as of
11/ 1/98: $15,000.00
Phase Increment Detail/Age
36 unit townhome community consisting of 10 duplexes and 4 fourplexes.
Wherever possible we have used cost figures provided by client.
Field study of 3/16/98 was performed in advance of major renovations.
Reserve plan begins following completion of scheduled 1998 replacements
RDASummary of Calculations
Monthly Contribution to Reserves Required:
( $114.07 per unit per month)
Average Net Monthly Interest Contribution This Year:
$4,106.61
176.52
Net Monthly Allocation to Reserves 11/ 1/98 to 10/31/99:
( $118.98 per unit per month)
$4,283.13
Page 2 - 1
PC GRAPHICS & PUBLISHING
Rockford Owners Association
New Hope, Minnesota
Reserve Analysis Report Summary
Report Date
version
March 17, 1998
004
Parameters:
Account Number
102
Inflation
Annual Contribution Increase
Inve~tment Yield
Taxes on Yield
Contingency
3.50%
3.50%
6.00%
0.00%
5.00%
Budget Year Beginning
Ending
11/ 1/98
10/31/99
Total Units Included
Phase Development
36
1 of 1
Reserve Fund Balance as of
11/ 1/98: $15,000.00
Phase Increment Detail/Age
.
36 unit townhome community consisting of 10 duplexes and 4 fourplexes.
Wherever possible we have used cost figures provided by client.
Field study of 3/16/98 was performed in advance of major renovations.
Reserve plan begins following completion of scheduled 1998 replacements
Cash Flow Specific Summary of Calculations
Monthly Contribution to Reserves Required:
( $59.50 per unit per month)
Average Net Monthly Interest Contribution This Year:
$2,142.00
121.58
Net Monthly Allocation to Reserves 11/ 1/98 to 10/31/99:
( $62.88 per unit per month)
$2,263.58
Page 2 - 23
PC GRAPHICS & PUBLISHING
4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
TOO: ' 612-531-5109
City Hall Fax: 612-531-5136
Police Fax: 612-531-5174
Public Works Fax: 612-533-7650
Fire Oep't, Fax: 612-531-5175
February 25, 1998
Mr. Jim Graham
Hennepin County Office of Planning & Development
Development Planning Unit
10709 Wayzata Boulevard, Suite 260
Minnetonka, MN 55305
Subject:
Sandpiper Cove Rehab Loans
Dear Jim:
Per our phone conversation, the City of New Hope is working with Sandpiper Cove/Rockford
Homeowners Association on proposed significant rehabilitation to the property. Sandpiper Cove is a
townhouse development located at 8101-8953 42nd Avenue that contains 36 owner-occupied
town homes. The complex is 20 years old and there are significant exterior deterioration problems, The
owners have approached the City for assistance because, as a townhouse association consisting of
individual owners, they have been rejected by several banks for loans to make the needed
improvements. The City is in the process of creating a Housing Improvement Area for the Sandpiper
Cove town home development where the City could finance the improvements and access the benefiting
properties similar to a special assessment project.
A question that we have received from several of the owners with modest incomes is "are there any
programs or funds that could assist them with their individual assessment." The estimated cost of the
project has fluctuated up and down, but I believe it will be about $500,000, with an individual assessment
of about $16,000 to each of the 36 owners, The assessment would probably be spread over a 20-year
period. The project is similar to one recently completed or still in process in Hopkins, My question to you
is "if individual owners meet the specified income guidelines, is there a way that the City can use some
of its single family rehab funds for certain units?"
I have enclosed background information on this project, the preliminary overview specification and
budget, and income information (several years old) from the owners, Would you please review this
information and let me know if there is a way the City can assist some of these owners with CDBG
funds, It is definitely in the City's best interest to support the rehabilitation of these units, I am meeting
with representatives of the Homeowners Association again on March 4 and would appreciate it if you
could give me some indication on your feelings on this by that time,
Family Styled City ~~l'<~ For Family living
i iV" Ij II
Mr. Jim Graham
Page 2
February 25, 1998
Thank you for your assistance.
Sincerely,
, ~~\\~~~
Kirk McDonald
Director of Community Development
Enclosures: Background Information
Overview Specifications/Budget
Income Information
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Sue Henry, Community Development Specialist
Improvement Project #600
HELLMUTH t3 JOHNSON. P:A.
ATTO R N EYS AT L.....W
300 CABRIOL.E CENT~R
9531 WO::ST 7$"'''' $TREET
EDEN PRAIRIE, MINNE:SOTA 55344-8006
CHAD A....JOHNSON.
TE:LEPHONE
(';>-12) S>41- ....005
OAV'D (;, HeLLMUTH
BL....KE ~. N~LSON
R, TRAV'S el'lUNSQN
KEVIN W, oe;VQI'IC
WRITER'S E.MAIL ADDRESS
caj@hjlawfirm.com
F'AC5IMIL;;
(612) 9...., ~23.37
March 17,1998
Me Richard Lilja
All Services Management Company
P,O. Box 16433
Minneapolis, MN 55416-0433
VIA FACSIMILE AND
FIRST CLASS MAIL
Rc: Rockford O\\'llers Association
Our File No.: 6209001
Dear Mr. Lilja:
Attached please find the requested opinion letter regarding the Association's intent to
enter into a development agreement with the City of New Hope for improvements in the amolUlt
of $500,000,00. If an opinion letter is necessary for the City of New Hope, 1 must be provided
with a copy of the intended development agreement and minutes of the Association's Board of
Directors' meeting authorizing its President to enter into said agreement. However, a separate
letter should not be necessary, because the attached opinion letter clearly states that the
Association is a non-profit cQrporation with authority to sign such a development agreement.
If you have any questions Or comments with regard to the above referenced matter, please
do not hesitate to contact me.
Very tmly yours,
CAJ/mss
Ene.
s:c:assn\!trs\rockfordliljal.ltr
>REAL PI'lOPE:RTY LAW SPECIALIST, CE:RTIFI;;D BY THE REAL ""'OPERTY LAW SECTION 01' THE MINNE;;SOTA STATE eAR ASSOCIATION
HE L L M U T H to J 0 H N SON, P A.
....TTORN EYS AT "'AW
300 CABRIOLE;: CENTER
9531 WEST 7e~'" STRE:!;;T
EDEN PI'lAIFlIE, MINNESOTA 55344-B006
CHAO":"'. ..}OHNSON.
OAVID Q, HELI.MUTH
TELG:PHONE;;
(6'2)941-"'005
BLAKE ~. NEL~ON
WRITER'S E.MAIL ADDRESS
caj@hjlawf1rm.com
'" TRAVIS Ell'lu NSON
KEVIN W OEVORE
FACSIMILE
(SI2) 941 - 2337
March 17, 1998
Mr. Richard Lilja
All Services Management Company
P.O. Box 16433
Minneapolis, MN 55416-0433
VIA FACSIMILE Al"lD
FIRST CLASS MAIL
Re: Rockford Owners Association
Our File No.: 6209001
Dear Mr. Lilja:
As you are well aware, the above captioned law firm represents Rockford O'v\'Ilers
Association, a Minnesota non-profit corporation (the "Association"), in COlUlection with various
matters, including the execution of a development agreement with the City of New Hope for
$500,000.00 in improvements to the Association. At your request, I have exanlined the Articles
of Incorporation for Rockford Owners Association dated May 25, 1997, the Certificate of
Incorporation issued by the Minnesota Secretary of S tate dated June 7, 1997, the Amendment to
the Articles of Incorporation dated March 10, 1997, the By-Laws of Rockford Owners
Association dated ApIil 10, 1978, and the Declaration of Covenants, Conditions and Restrictions
dated April 10, 1978 (herein referred to collectively as the "Governing Documents"). Based on
my examination of the Governing Documents, it is my opinion that:
1. The Association is a non-profit corporation, which is duly organized, validly
existing and in good standing under the laws oflhe State of Minnesota and has all
requisite authority to execute, deliver and pcrfonn the intended agreement with
the City of New Hope, and such execution, delivery and performance are within
the corporate powers of the Association, acting by and through its Board of
Directors.
2. This opinion is subject to the following qualifications:
a. Enforcement of the rights and remedies set forth in the above mentioned
documents may be limited by bankruptcy, liquidation, insolvency,
arrangement, moratorium, reorganization, or other similar laws of general
application relating to or affecting creditors' rights and remedies
thereunder.
-REAL. P~OPe.FlT'Y LAW SPECIAL'ST~ ceRTIFIED By T....E REAl.. ~ROPERTY l.AW SECTION OF 't'HE: MINNE50"'rA STATE FJAR ASSOCIATIO....
Mr. Richard Lilja
March 17, 1998
Page 2
b. Enforcement of the rights and remedies under the above mentioned
documents will be subject to general principles of equity regardless of
whether they are considered in a legal or equitable form.
c. This opinion is limited to the laws of the State of Minnesota and of the
United States of America, as enacted and in effect as ofthe date hereof.
d. This opinion is rendered to the addressee hereof on behalf of the
Association for its sole and exclusive benefit. This opinion may not be
relied upon by any other person or entity without our specific prior written
consent.
V cry truly yours,
CAJ/mss
s: c: assn \1 trs\rockford 1 ilJ ij,j tr
STEVEN A. SONDRALL
MICHAEL R, LAFLEUR
MARTIN p, MALECHA
WILLIAM C, STRAIT*
CORRICK & SONDRALL, P.A.
ATTORNEYS AT LAW
Edinburgh Executive Office Plaza
8525 Edinbrook CrOSSing
Suite #203
Brooklyn Park. Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 425-5867
LEGAL ASSISTANT
SHARON D, DERBY
*OUAUFIED ADR NEUTRAL
March 13, 1998
Kirk McDenald
Directer ef Cemmunity Develepment
City ef New Hepe
4401 Xylen Avenue Nerth
New Hepe, MN 55428
RE: Fee Reselutien fer Sandpiper Ceve Heusing Imprevement Area
Our File No.: 99.11155
Dear Kirk:
Please find enclesed fer censideratien at the March 23, 1998 Ceuncil meeting a
prepesed Reselutien Appreving a Heusing Imprevement Special Assessment
Fee fer the Sandpiper Ceve Heusing Imprevement Area pursuant to. Minn.Stat.
ss428A.11 threugh 428A.21.
Prier to. the adeptien ef this Reselutien, we need the fellewing decuments frem
the Reckferd Owners Asseciatien:
1. A Financial Plan prepared by Reserve Data Analysis indicating hew
the Asseciatien will finance maintenance and eperatien ef the
cemmen elements and its leng range plan to. cenduct and finance
capitalimprevements within the heusing area; and
2. A signed Petitien frem at least 25% ef the unit ewners within the
heusing imprevement area requesting impesitien ef the heusing
imprevement special assessment fee made reference to. in the
prepesed Reselutien enclesed.
Witheut these decuments, the Ceuncil will net be able to. adept the prepesed
Reselutien, therefereit is imperative fer the Reckferd Owners Asseciatien to.
previde these decuments if it wishes to. maintain its time schedule for the
censtructien ef the improvements.
As we discussed, this Reselutien will cemmit the City to. assist the Roc kfe rd
Owners Asseciatien with its prepesed imprevements in the Sandpiper Ceve
Townheme Develepment. Basically, the City will be making a lean to. each unit
Kirk McDenald
March 13, 1998
Page 2
ewner within the develepment to. facilitate censtructien ef the prepesed
imprevements as set eut in the everview specificatiens prepared by Censtructien
Censulting and Inspectiens, Ltd. We are intending to. finance appreximately
$500,000 ef censtructien cests. The additienal $1 00,000 is fer administrative
cests asseciated with the preject including legal and engineering cests and bend
issuance cests. It is my understanding that at seme future date the City will issue
bends, pursuant to. the autherity previded by the Heusing Imprevement Act, to.
reimburse itself fer the censtructienimprevement cests ef this preject. The City
will then be reimbursed fer these cests by payment ef an annual fee frem each
heusing unit ewner cellected aleng with real estate taxes. Therefere, the City's
investment in this preject will be secured by the equity, if any, ef the individual
heusing units. Please be advised that there has been no. analysis dene bv eur
effice with respect to. whether there is sufficient equity in any ef the units to.
secure payment ef the prepesed heusingimprevement fees in the event ef a
default bv an individual unit ewner.
Also., the Reckferd Owners Asseciatien will be required to. enter into. a
Develepment Agreement which sets ferth the terms and respensibilities ef the
Reckferd Owners Asseciatien relative to. this preject and the disbursement ef
funds by the City to. finance the imprevements. Please find enclesed a draft cepy
ef this agreement fer staff and City Ceuncil review as well. This agreement will
need to. be entered into. prier to. expiratien ef the 45-day veto. peried en the fee
reselution by ewners ef the preperty units within the imprevement area. No. funds
will be disbursed until this agreement is signed and all cenditiensef the
.agreement fer disbursement ef funds are met by the Asseciatien. Basically,
Article III ef the Develepment Agreement sets ferth the cenditiens which must be
met by the Asseciatien befere any funds are previded to. finance the
imprevements. Specifically, the Asseciatien will need to. previde to. the City (1) a
cepy ef appreved Censtructien Plans; (2) cepies ef all centracts with censultants
and centracters retained by the Asseciatien to. make theimprevements; (3) a
swern censtructien statement; (4) a tetal preject cest statement; (5) cepies ef all
necessary licenses and permits necessary to. make the imprevements; (6)
apprepriate certificatiens that any request fer payment relates enly to. perfermed
werk er materials stered en site fer which payment has net been previeusly made
and that said werk and materials is necessary to. cemplete the imprevements;
and (7) certificatiens by the Asseciatien that there is sufficient meney en depesit
in all funds with the City to. cemplete the preject as prepesed and that the
Asseciatien is net in default en any ef the terms related to. the preject er this
agreement.
Kirk McDonald
March 13, 1998
Page 3
The Development Agreement also requires the Association to indemnify and hold
the City harmless for any claims, damages or causes of action in any way
connected with the project including reimbursement of the City's attorney's fees
and costs incurred by the City in defense of any claim or cause of action against
the City resulting from this project.
Also note that after the adoption of the enclosed Resolution at the March 23,
1998 meeting, the City must prepare and mail to all of the unit owners within the
improvement area a summary of this Resolution including the following
information:
1 . A legal description of the property and units affected by the
Resolution;
2. The amount of the fee imposed on each housing unit by the
Resolution;
3. The right of the unit owners to prepay the fee and the procedure ror
doing so;
4. The annual payments imposed against each unit if not prepaid by
the unit owners;
5. The fact that that improvement fee will not exceed the amount
shown in the Resolution, but it may be reduced, and any reduction
will be applied to each unit on a pro-rata basis in the same amount
as the original fee was determined; and
6. The effective date of the Resolution and the right of the unit owners
to file objections and veto the fee prior to its effective date.
I will be responsible for the preparation of the summary and will provide it to the
City Clerkin sufficient time so it may be mailed to the appropriate unit owners
within 5 days after the adoption of this Resolution.
If you have any further questions or comments regarding this matter, please do
not hesitate to contact me.
yours,
Steven A. Sondrall
s1f3
Enclosure
cc: Daniel J. Donahue, City Manager
Valerie Leone, City Clerk
RESOLUTION NO. 98-
RESOLUTION APPROVING A HOUSING IMPROVEMENT
SPECIAL ASSESSMENT FEE FOR THE SANDPIPER
COVE HOUSING IMPROVEMENT AREA PURSUANT
TO MINN.STAT. 99428A.11 THROUGH 428A.21
City of New Hope, Minnesota
BE IT RESOLVED by the City of New Hope, Minnesota as follows:
Section 1, Recitals,
1.01 The City of New Hope ("City") is authorized under Minn,Stat.
SS428A.11 through 428A.21 (the "Housing Improvement Act") to establish by
ordinance a housing improvement area within which housing improvements are
made or constructed and the costs of the improvements are paid in whole or in
part from fees imposed within the area,
1,02 By Ordinance No. 98-02 adopted January 12, 1998 (the "Enabling
Ordinance"), the Council established the Sandpiper Cove Housing Improvement
Area in order to facilitate certain improvements to property known as the
"Sandpiper Cove Townhome Development", all in accordance with the Housing
Improvement Act.
1,03 In accordance with Minn.Stat. S428A.12 of the Housing
Improvement Act, owners of at least 25 percent of the housing units within the
Sandpiper Cove Housing Improvement Area have filed a petition with the City
Clerk requesting a public hearing regarding imposition of a special assessment
housing improvement fee for the Sandpiper Cove Housing Improvement Area.
1.04 The Council has on March 23, 1998 conducted a public hearing,
duly notice in accordance with the Housing Improvement Act, regarding adoption
of this resolution at which all persons, including owners of property within the
Sandpiper Cove Housing Improvement Area, were given an opportunity to be
heard,
Prior to the date hereof, the Rockford Owners Association (the "Association")
has submitted to the City a financial plan prepared by Reserve Data Analysis, an
independent third party, acceptable to the City and the Association, that provides
for the Association to finance maintenance and operation of the common
elements in the Sandpiper Cove Townhome Development and a long-range plan
to conduct and finance capital improvements therein, all in accordance with
Minn,Stat. S428A.14 of the Housing Improvement Act.
1.06 For the purposes of this Resolution, the terms "Sandpiper Cove
Housing Improvement Area" and "Housing Improvements" have the meanings
provided in the Enabling Ordinance set out in New Hope Code SS 1,803 and
1,804,
Section 2, Housing Improvement Fee Imposed,
2,01 The City hereby imposes a fee on each housing unit within the
Sandpiper Cove Housing Improvement Area (the "Housing Improvement Fee"),
as specified in Exhibit A attached hereto, which Housing Improvement Fee is
imposed on the basis of the total cost of the Housing Improvements to be
financed by the Housing Improvement Fee divided by the number of housing
units in the Sandpiper Cove Housing Improvement Area as of the date of this
Resolution,
2,02 The owner of any housing unit against which the Housing
Improvement Fee is imposed may, at any time within 30 days after the effective
date of this Resolution, pay all or a portion of the total Housing Improvement Fee
imposed against such housing unit as specified in Exhibit A hereto to the City
without interest thereon; provided that if only a portion is prepaid the prepayment
amount must be at least 25% of the total fee for that unit. Any Housing
Improvement Fee (or a portion thereof) not prepaid in accordance with this
Section shall be payable solely in accordance with Section 2.03 hereof.
2.03 If not prepaid in accordance with Section 2.02 hereof, the Housing
Improvement Fee (or a portion thereof) shall be payable in equal annual
installments extending over a period of 20 years, the first of the installments to be
payable in calendar year 1999, which annual payment shall be deemed to
include interest on unpaid Housing Improvement Fee from the date of this
Resolution at an 8% annual interest rate to finance the Housing Improvements in
accordance with the Enabling Ordinance and the Housing Improvement Act. The
annual payment for each housing unit for which the Housing Improvement Fee
has not been prepaid is also stated on the attached Exhibit A to this Resolution in
the City's official records,
2.04 The Housing Improvement Fee, unless prepaid in accordance with
Section 2,02 hereof, shall be payable at the same time and in the same manner
as provided for payment and collection of ad valorem taxes, as provided in
Minn,Stat. S428A.15 of the Housing Improvement Act.
2
2,05 The Housing Improvement Fee imposed against each housing unit
shall not exceed the amount specified in Exhibit A hereto; provided, however,
that the Housing Improvement Fee may be reduced at any time before issuance
of the Bonds, which reduction shall be applied pro rata to each housing unit's
Housing Improvement Fee on the basis described in Section 2.01 hereto, and
further provided that if any housing unit owners have prepaid the Housing
Improvement Fee prior to any reduction in that fee, the City shall promptly
reimburse such housing unit owner in the amount of the Fee, the City Clerk shall
cause to be prepared a revised copy of Exhibit A hereto, which shall be attached
to the Resolution in the City's official records and shall be promptly mailed to all
housing unit owners within the Sandpiper Cove Housing Improvement Area,
Section 3, Notice of Right to File Objections,
3,01 Within five days after the adoption of this Resolution, the City Clerk
is authorized and directed to mail to the owner of each housing unit in the
Sandpiper Cove Housing Improvement Area a summary of this Resolution;
notice that owners subject to the Housing Improvement Fee have a right to veto
this Resolution if owners of at least 35% of the housing units within the
Sandpiper Cove Housing Improvement Area file an objection with the City Clerk
before the effective date of this Resolution, and notice that a copy of this
Resolution is on file with the City Clerk for public inspection,
Section 4, Effective Date,
2.02 This Resolution shall be effective 45 days after adoption hereof,
Section 5, Filinq of Housinq Improvement Fee,
5.01 By November 15, 1998, the City Clerk shall file a certified copy of
this Resolution together with a final update of Exhibit A hereto to the Hennepin
County Director of Taxation to be recorded on the property tax lists of the county,
Approved by the City Council of the City of New Hope this 23rd day of
March, 1998,
W, Peter Enck, Mayor
Attest:
Valerie Leone, City Clerk
c:\word\cnh\reso,sc
3
EXHIBIT A TO RESOLUTION 98-_
Total Fee Per Housing Unit:
$16,667.00
$ 1,697.54
Annual fee per Housing Unit:
4
Hennepin County
An Equal Opportunity Employer
March 4, 1998
Mr, Kirk McDonald
Director of Community Development
City of New Hope
4401 Xylon Avenue North
New Hope,"MN 55428-4898
Subject: Sandpiper Cove Rehab Loans
Dear Kirk:
Following is a response to the questions in your February 25 letter to Jim Graham,
regarding the use of federal funds for rehabilitation loans at Sandpiper Cove,
Townhomes and condominiums are eligible properties under our Community
Development Block Grant (CDBG) and Minnesota Housing Finance Agency (MHF A)
rehabilitation loan programs; however, because of the unique characteristics of this type
of housing not all general improvements are eligible,
The single-family loan programs are designed to assist income-eligible owners and can
not be used for common areas or shared systems, A lien, securing the loan, is filed
against the homeowner's property, CDBG or MHF A rehabilitation loans can only be
used to improve the interior of the dwelling unit or improvements, which are appurtenant
to the dwelling unit.
Other Possible Funding
Hennepin County administers two federal programs to assist cities with housing issues,
Community Development Block Grant Funds (CDBG) and HOJ\1E Investment
Partnership Program (HOJ\1E), These funds could be used to assist in exterior
improvements provided the following conditions are met:
. Environmental assessment would need to be completed,
. Assisted homeowners must meet income guidelines,
Office Of Planning & Development
Development Planning Unit
10709 Wayzata Boulevard, Suite 260
Minnetonka, Minnesota 55305
(612) 541-7080 FAX:(612) 541-7090 TDDfITY:(612) 541-7981
Recycled Paper
Mr, Kirk McDonald
Page 2
· Assistance would be provided in the form of a deferred loan, payable at the point of
sale,
. CDBG funding would require all construction work to comply with Federal Labor
Standards,
. HOME funding would require construction work to comply with Federal Labor
Standards if 12 or more units are assisted,
. HOME funding would require that the after rehabilitation value of the unit not exceed
$116,800,
· Home funding would require that the entire unit be inspected and meet Section 8
Housing Quality Standards,
Based on our telephone conversation, the HOME funding would probably best meet the
city's needs for this project. The program should be targeted to families at 50 percent of
area median income, HOME funding is awarded on a competitive basis and 1998
proposals are due March 13, 1998,
If you need assistance with the HOME application, please contact me at 541-7083 or
Sarah Bellefuil at 541-7089,
Sincerely,
1i3~~
Barbara Hayden
Administrative Manager
cc: Sarah Bellefuil
Mark Hendrickson
Jim Graham
.~
~Memo
~p~
DATE: January 12, 1998
TO: Urban Hennepin County Subrecipients and HOrvtE Participants
FROM: Office ofPianning & Development
SUBJECT: 1998 Section 8 Income Limits (Effective January 7, 1998)
Below are the current Section 8 income limits for low-income (80% of median) and very low income (50% of median)
households. In addition, income for households at 60% and 30% of median income are provided. These income limits are
based on HUD estimates of 1998 median household income. U ,S. median family income increased to $45,300. Minneapolis!
St.Paul MSAmedian income increased from $57,300 to $60,800. U.S. median family income is used as a cap in calculating
income for households at 80% of median income.
These income limits must be used in calculating household income eligibility for all HUD funded activities that need to
document low/moderate income benefit. These income limits are effective until further notice.
1 Person 31,700 25.560 21.300 12.750 \
2 Person 36,250 29.160 . 24,300 14.600 I,
3 Person 40,750 32.820 27.350 16.400 \
4 Person 45,300 36.480 30.400 18_250 \
5 Person 48.900 39,420 32.850 19,700
6 Person 52.550 42.300 35.250 21,150
7 Person 56_150 45.240 22.600
8 Person 59,800 48,180 24,100
. Three person- S13,330, Four
- $26,930,
o 1-12-98 section 8 ine guideline.doe
For reference only, the FY97 Federal PovertY Guidelines: One person- S7,890, Two
person- S16,050, Five person- $18,770, Six person- S21,490, Seven person- $24210,
U:\FO
Hennepin County Office of planning & Development, Development Planning Unit, 10709 Wayzata Boulevard,
Suite 260, Minnetonk, MN 55305
Mail Code: 604 phone: (612) 541-7080 Fax: (612) 541-7090 TDDfTIY (612) 541-7981
4401 Xylon A venue North
New Hope, Minnesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
City Hall Fax: 612-531-5136
Police Fax: 612-531-5174
Public Works Fax: 612-533-7650
Dep't, Fax: 612-531-5175
February 25, 1998
c~ p-10r.-
kf4 /j;~95/
~i /J-/!j~'~
~A" "..~1 ',i' J ,11, t5
","! /{IIL-C"v-..... ~:,
L-;''''-'0~--<J
Mr, Jim Graham
Hennepin County Office of Planning & Development
Development Planning Unit
10709 Wayzata Boulevard, Suite 260
Minnetonka, MN 55305
Subject:
Sandpiper Cove Rehab Loans
Dear Jim:
Per our phone conversation, the City of New Hope is working with Sandpiper Cove/Rockford
Homeowners Association on proposed significant rehabilitation to the property, Sandpiper Cove is a
townhouse development located at 8101-8953 42nd Avenue that contains 36 owner-occupied
townhomes. The complex is 20 years old and there are significant exterior deterioration problems, The
owners have approached the City for assistance because, as a townhouse association consisting of
individual owners, they have been rejected by several banks for loans to make the needed
improvements, The City is in the process of creating a Housing Improvement Area for the Sandpiper
Cove town home development where the City could finance the improvements and access the benefiting
properties similar to a special assessment project.
A question that we have received from several of the owners with modest incomes is "are there any
programs or funds that could assist them with their individual assessment." The estimated cost of the
project has fluctuated up and down, but I believe it will be about $500,000, with an individual assessment
of about $16,000 to each of the 36 owners. The assessment would probably be spread over a 20-year
period, The project is similar to one recently completed or still fn process in Hopkins. My question to you
is "if individual owners meet the specified income guidelines. is there a way that the City can use some
of its single family rehab funds for certain units?"
I have enclosed background information on this project, the preliminary overview specification and
budget, and income information (several years old) from the owners, Would you please review this
information and let me know if there is a way the City can assist some of these owners with CDBG
funds, It is definitely in the City's best interest to support the rehabilitation of these units, I am meeting
with representatives of the Homeowners Association again on March 4 and would appreciate it if you
could give me some indication on your feelings on this by that time,
F 'I Sid C' )~YM~ F F 'I L' ,
ami y ty e Ity -i\j'n!\, Vji{. or ami y Ivmg
Mr, Jim Graham
Page 2
February 25, 1998
Thank you for your assistance,
Sincerely,
,~~\\~~~
Kirk McDonald
Director of Community Development
Enclosures: Background Information
Overview Specifications/Budget
Income Information
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Sue Henry, Community Development Specialist
Improvement Project #600
l'>..\ ~ i~ C
,"U..~ i '\\.\' '
September, 1996
Members of New Hope City Council
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Dear City Council Members:
We are writing to you as an association to request your assistance in a matter which is of
great importance to us. As residents of the City of New Hope, Sandpiper Cove
Community and members of the Rockford Townhouse Association, we want to take pride
in where we live. However, the condition of our townhomes is deterioratinR at a rate with
which we cannot keep up. We understand the City of New Hope takes pride in the
condition of its residential properties. We want to be proud of our townhomes and to
have them be an attractive and pleasant enhancement to. iliis city.
Weare living with a problem that began when our homes were built. Gleason
Construction, the contractor who constructed our townhomes, used materials of poor
quality and whose construction techniques were questionable. The materials have lasted
approximately fifteen years but are now deteriorating and are in desperate need of repair.
At various levels of urgency, our homes need to be sided, gutters and downspouts
applied, roofs, windows, patio doors and decks.
The founders of the Association felt, with the newly built homes, there was no need to put
money aside in a maintenance fund for future repairs. A majority of the current residents
are relatively new to the complex and had no control over or voice in the decisions made
so many years ago. We have just recently started such a maintenance fund; however, it
will take some time before assets are built up.
We are doing all that is within our means to correct this problem ourselves. Even with
the majority of our residents living below New Hope's median income level, we have
voted and passed a $20 per month increase from $115 to $135 in our association dues
with an additional $20 increase effective January, 1997 from $135 to $155. Within the
past five years, the monthly fee has increased from $75 to $135. Unfortunately, this will
only make a small impact on the property's overall need.
Page 2.
The work to be performed is not superficial improvements that we desire. Some residents
can no longer walk on th~ir decks due to the structural weakness, some have water
leaking through their light fixtures and others have siding that is rotting right off their
home. The improvements we are requesting your assistance with are vital and would
benefit us as well as the City of New Hope. Aesthetically, the property would be much
more attractive and pleasing with new vinyl siding, roofs, windows, patio doors and
stable decks.
Being located right off the major intersection of 42nd and Boone Avenues, positions our
townhomes in the direct view of the public. We do not want our property to nullify the
improvements that have been made along 42nd Avenue over the past years. We want to
be considered an asset rather than a drawback.
We hope that by receiving this letter you will see our serious concern and - dedication to
this subject.
Once again we ask you to carefully consider the possibility of assisting us with the
special funding so improvements can be made.
Respectfully,
Residents of the Rockford Homeowners Association
RESOLUTION 98-04
Item 6.9
RESOLUTION ~5
Item 6.10
RESOLUTION 98-06
Item 6.11
RESOLUTION 98-07
Item 6.12
IMP. PROJECT 486
Item 6.14
IMP. PROJECT 583
Item 6.15
IMP. PROJECTS 586
AND 589
Item 6.16
IMP. PROJECT 592
Item 6.17
BID/TURNOUT GEAR
Item 6.18
BID/VEmCLE
Ite .~
IMP. PROJECT 600
Item 7.1
New Hope City Council
Page 2
Resolution Approving Specifications and Authorizing Bidding for the 1998 Street
Sweeping Project.
Resolution Accepting Resignation of Richard Stulberg from the New Hope
Planning Commission and Extending Appreciation for His Service.
Resolution Accepting Resignation of James Damiani from the New Hope Planning
Commission and Extending Appreciation for His Service.
Resolution Approving Agreement with Events of Distinction to Assist with
Coordination of 1998 Northwest Suburban Remodeling Fair (Improvement Project
No. 514).
Motion Approving Final Pay Request to C.S. McCrossan Construction, Inc, in the
Amount of $66,250.92 for 36th Avenue Between Winnetka and Louisiana Avenues
- Project No. 486.
Motion Approving Final Pay Request to Jay Bros., Inc. in the Amount of
$4,386.08 for 1997 Backyard Drainage Projects (Improvement,Project No, 583),
Motion Approving Final Pay Request to Dave Perkins Contracting, Inc, in the
Amount of $846.50 for the Gettysburg Watermain Repair, Construction of the
Wetland Access Path, and Drainage Improvements at 9116 31'1 Avenue North
(Project Nos. 586 and 589).
Motion Approving Final Pay Request to Allied Blacktop in the Amount of
$12,229.95 for the 1997 Crack Repair and Sealcoat Project (Project No, 592),
Approval of Bid Submitted by Danko Emergency Equipment for 6 sets of Turnout
Gear for $5,094.
Approval of Bid from Superior Ford Fleet and Government Sales Department for
One (1) 1998 Crown Victoria Four Door Vehicle in the Amount of $20,652,
\ Mayor Enck introduced for discussion Item 7.1, Public Hearing/Ordinance No, 98-
) 02, An Ordinance Establishing a Housing Improvement Area for the Sandpiper
Cove Townhome D..evelopment Pursuant to Minn. Stat. Chap. 428A (Improvement
Project N~~ -'>
Mr. Kiik McDonald, Director of Community Development, explained that this is a
public hearing continued from previous meetings to consider the adoption of an
ordinance establishing a Housing Improvement Area for the Sandpiper Cove
Townhome Development (Improvement Project no. 600). He stated at the June 9,
1997, CouncillEDA meeting, staff discussed the option of the City establishing a
Housing Improvement Area to provide fmancial assistance to upgrade the exterior
of these propenies. Sandpiper Cove is a townhouse development located at 8101-
8953 420d Avenue that contains 36 owner-occupied townhomes. The complex is 20
years old and there are significant exterior deterioration problems. The association
has sought preliminary bids from contractors who estimated that at least $350,000
is needed to make siding, deck, window, and other improvements. They
approached the City for assistance because, as a townhouse association consisting
of individual owners, they have been rejected by several banks for loans to make
the needed improvements. At that meeting, the City Anorney outlined new
legislation and procedures to initiate a program where the City could assess the
benefiting properties similar to a special assessment project. The EDA was
January 12, 1998
/
(
New Hope City Council
Page 3
~nera1lY receptive to this idea and directed s~ proceed with the preparation of
an ordinance.
Mr. McDonald continued by explaining that a public hearing was opened at the
July 28 Council meeting to consider this ordinance and the public hearing was
tabled because the association had not yet had an engineering analysis completed to
determine the specific improvements that need to be made to the properties. A
description of the necessary improvements must be identified in the ordinance. The
public hearing was tabled until August 25, October 13, November 10, December 8
and January 12 because the hiring of a consultant and the completion of the
engineering analysis was taking longer than anticipated by the association. The
townhouse association conducted a meeting in November where approximately 70
percent of the homeowners were present and there was a unanimous vote to
proceed with the project and to contract with an engineer to prepare detailed cost
estimates.
He stated the Overview Specifications and budget estimates for the project were
provided by the Association in December and are presently being reviewed by city
staff. He noted that the total estimated costs of the improvements have increased
to almost $600,000 and does not include the 15 percent that the City would add on
for legal, fmancial and administrative costs. Mr, McDonald emphasized that
approval of the ordinance establishing' the Housing Improvement Area does not
constitute approval of the specifications, as staff wants to have the opportunity to
recommend changes before the specifications are finalized. The association also
met with staff in December to discuss the assessment process and several options,
The association may consider"reducing the scope of the project due to the increased
costs. They have also requested that information be made available to them on
potential rehabilitation grant programs for low/moderate income persons that own
units in the complex.
Mr. McDonald explained that the following steps must occur before the City would
commit to the project:
1. The Condominium Association must provide the City with a fmancial plan
prepared by an independent third party, acceptable to the City and the
Association, indicating the Association will be able to fmance the construction,
mainrenance and operation of the proposed improvements made to the
common elements of the property. The plan should also indicate the
Association's long range plan to conduct and finance other capital
improvements that will be necessary to the property.
2. The Association will need to enter into a Development Agreement with the
City for the purpose of implementing the construction of the proposed
improvements.
3, A final determination will need to be made regarding the special assessments
for costs to each unit within the Association for the proposed improvements,
Once this cost is determined, the City will then need to hold a second public
hearing in connection with the special assessment of these costs against each
housing unit. As part of this public hearing for imposition of special
assessments, the City will need to indicate the assessable amount against each
unit.
4, The adoption of proposed Ordinance 98-02 and any resolution imposing
special assessments for cost of the improvement project are also subject to a
veto by 35 percent of the homeowners within the Association within 45 days
January 12, 1998
,
(
CLOSE HEARING
ORDINANCE 98-02
Item 7.1
New Hope City Council
Page 4
e e
after the adoption of either the ordinance or the resolution. As a result,
proposed Ordinance No. 98-02 will not be effective until 45 days after its
publication. The ordinance will not be effective until March 9, 1998.
Likewise, a fee resolution is subject to a veto by 35 percent or more of the
homeowners within the improvement area. Therefore, the City could not fund
any construction related costs until the veto time period has expired after
adoption of the fee resolution. Before the City can adopt the ~ fee resolution,
items 1, 2 and 3 above must be completed.
Even if both veto time periods expire, homeowners within the improvement
area may file objections to the special assessments against their housing units.
However, to affect appeal rights a property owner would need to file a written
objection to the ordinance or the resolution on or before the public hearing at
which the ordinance or resolution is adopted. Therefore, if the City receives
no flied objections to the ordinance on or before January 12, no property
owner will be able to object to the inclusion of his or her unit within the
improvement area. However, since we have not yet noticed a public hearing to
adopt a special assessment fee resolution, all property owners within the
improvement area will still be able to object to a fee levied against their units.
Mr. McDonald concluded by summarizing that adoption of th~ proposed ordinance
simply initiates the process to implement a housing improvement project financed
by the City and funded by special assessments against the individual housing units.
The Homeowner's Association, as well as the City, still have a significant amount
of work to do prior to the actual commitment of funds or the sale of bonds for
actual improvement costs.
The City Council reiterated their suppon for the project and their desire to have all
necessary construction included in the initial project rather than separate phases.
The Council expressed concern if the Association desires to substantially reduce
the scope of the project.
Mr. McDonald stated the Association may choose to fund part of the project with
association funds in order to reduce assessments.
Discussion ensued regarding prepayments of special assessments. The City Council
directed the City Attorney to amend section 1.085(3) of the proposed ordinance
relating to prepayments. A partial payment of the housing fee will be accepted
within 30 days after adoption of the fee ordinance provided the partial payment is
equal to 25% of the total fee. After the 30-day period is expired, no further partial
payments will be accepted except a prepayment of the full amount of the unpaid
ponion of the fee and accrued interest.
Mr. Peter Rawski, Vice President of the Rockford Association Board of Directors,
was recognized. He spoke regarding the project and noted that the project cannot
proceed without the approval of the majority of owners.
Motion was made by Councilmember Collier, seconded by Councilmember Norby.
to close the hearing. All present voted in favor. Motion carried.
Councilmember Collier introduced the following ordinance and moved its
adoption: "ORDINANCE 98-02, AN ORDINANCE ESTABLISHING A
HOUSING IMPROVEMENT AREA FOR THE SANDPIPER COVE
TOWNHOME DEVELOPMENT PURSUANT TO MINN STAT. CHAPTER
428A (IMPROVEMENT PROJECT 600)". The motion for the adoption of the
January 12, 1998
/
IMP. PROJECT 617
Item 8.1
MOTION
Item 8.1
HEAL TIl BENEFITS
Item 10.1
New Hope City Council
Page 5
,
~.
ttregoing ordinance was seconded by counc~ber Cassen, and upon vote being
taken thereon, the following voted in favor thereof: Enck, Cassen, Collier,
Norby, Otten; and the following voted against the same: None; Abstained: None;
Absent: None; whereupon the ordinance was declared dulv passed and adOPted,
signed by the mayor which was attested to by the city clerk.
Mayor Enck introduced for discussion Item 8.1, Presentation Regarding Bike Lane
Evaluation, Project No. 617; Motion Authorizing Citizen Advisory Commission to
Conduct Public Meeting.
Mr. Dan Donahue, City Manager, explained that the City's Transponation Plan
was revised in 1995 and provided provisions for bike pathways. During this year's
sealcoating process, the City has the opportunity to reconfigure the street striping
on some MSA streets to accommodate the bikeway system. Mr. Donahue stated if
the Council is interested in providing bike lanes, staff recommends that the City
Council direct the Citizens Advisory Commission to hold a public meeting to
discuss the proposed designation of bike paths on Boone A venue and Quebec
Avenue.
Mr. Mark Hanson, City Engineer, described the differences between bike lanes
and bike pathways and identified both on the transportation P.1an.
Mr. Hanson stated bike lane design requires bike traffic to follow motorized travel.
Therefore, a bike lane is required for each direction of traffic flow. He illustrated
proposed bike lane designs for Boone Avenue., Quebec Avenue, and 49Eh Avenue.
Some of the issues mentioned included:
1. One of the two parking lanes must be removed to accommodate bike lanes on
Boone Avenue. In certain locations such as Northridge and the schools, on-
street parking is extremely important. The 49th and Quebec A venue parking
lane width reductions from lO-feet wide to 8-feet wide are insignificant.
2. The street cross-section is not designed to accommodate bike lanes. Therefore,
one lane of traffic will straddle the centerline/crown of the roadway. As a
result, in the winter the snowplow may not completely remove the snow since
it will straddle the crown of the road.
3. The existing concrete gutters and pavement along Boone A venue are in poor
condition in many places. It is anticipated that within the next five years,
ponions of Boone Avenue will warrant reconstruction. In the interim. bike
travel in some locations may be difficult if minimal gutter and street repairs
are included in the sealcoat project.
Mr. Hanson reponed that the cost to provide bike lane striping and signage is
approximately $8,550.
Motion was made by Councilmember Norby, seconded by Councilmember Collier.
authorizing the Citizens Advisory Commission to conduct a public meeting
regarding bike lanes. Voting in favor: All. Motion carried.
Mayor Enck introduced for discussion Item 10.1, Resolution Establishing City's
Monthly Contribution for Health Benefits Program.
Ms. Sherry Draper, Human Resources Manager, explained that for the past several
years the City's monthly contribution amount has been set at 65% of the average
cost of family medical and dental insurance premiums. In 1997, the City
contributed 65 % of the lowest cost of family medical and dental plans or $302.
January 12, 1998
ROCKFORD HOMEOWNERS ASSOCIATION
Sandpiper Cove Townhomes
The following information was compiled to help establish the demographics of our
community. A copy of the survey used to compile the information was sent to each
household in the complex in November and December 1995.
SAMPLE SIZE: 36 homes/homeowners
Number of Responses: 20
Percentage Responding: 55 0/0
.
QUESTION #1: Do you own or rent your home?
All respondents were owners - 1 000/0
QUESTION #2: If you rent, who owns your home?
Cannot determine / no renters responded.
QUESTION #3: If you own, how long have you lived in your home?
Average length of.ownership: 6.37 years
Median length of ownership: 4.5 years
(High / 17 years - Low / 2 months)
QUESTION #4: What was the purchase price of your home?
Average purchase price: $58,900.00
Median purchase price: $57,500.00
(High / $80,000 in 1981 - Low / $49,500 in 1.990)
CITY OF NEW HOPE
Memorandum
FROM:
DATE:
SUBJECT:
Doug Sandstad, Building Official
Jean Coone, General Inspector
Randy Kurtz, Fire Inspector
Kirk McDonald, Director of Community Development
February 24, 1998
Revised Specifications for Sandpiper Cove (Rockford Owners Association)
Rehabilitation Project
TO:
Enclosed are revised overview specifications for the Sandpiper Cove Condo rehabilitation project. I
believe the major change is that most of the roof replacements have been deleted from this project
(except for two of the duplexes), as they hope to accomplish this out of their own funds (association
dues). The original specifications totaled about $650,000, which would have met about a $20,000
assessment per unit. The revised specs reduce the cost to about $500,000 which equals an assessment
of about $16,000 per unit.
Please review the overview specifications and let me know if there is anything you do not agree with or if
there are other important items that should be included. I will be meeting with them again on March 4, so
would appreciate your responses by Monday, March 2.
Thanks for your assistance.
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Sue Henry, Community Development Specialist
CONSTRUCTION
CONSULTING &
INSPECTIONS, LTD.
Rockford Ownel's Association
New Hope, Minnesota
APPENDIX A
1998 CAPITAL PROJECT
BUDGET ESTIMATE - CONSTRUCTION (1/30/98)
1. Windows (234)
- Double Hung; vinyl, Low E, argon $65,200.00
- Frame repair (est.) 5,000.00
- Reframe 8833-8931 1.000.00
$71,200
2. Patio Doors (44)
- Vinyl, Low E, argon $39,600.00
- Frame repair (est.) 3.500.00
$43,100
3. Overhead Garage Doors (36)
- 24 g. steel, including new springs and
rails, insulated
- Does NOT include new openers
$22,500
4. Decks and Stoops
- Duplexes (10)
. Decks $30,000.00
. Stoops/stairs 20.000.00
$50,000
- Four Plexes (4)
. Decks $32,000.00
. Stoops/stairs 16.500.00
$48,500
5. Roofs (Two Buildings)
- Duplexes (2)
· Includes soffits and eave fascia
$16,000
Pentagon Towers, Box 36 I 84
Minneapolis, Minnesota 55435
(612) 944-7137
FAX (612) 944-7018
6. Gutters/Downs (Selected Buildings)
- Two buildings (240')
- 5" gutters, 3 x 4 downs, aluminum,
all eaves
7. Exterior Lights
- Duplexes (20 units)
· 4 lights/unit (80 total) @ $50
- Four Plexes (16 units)
· 3 lights/unit (48 total) @ $50
$1,700
$4,000.00
2AOO.00
$6,400
8. Vinyl Siding and Accessories (All Buildings)
- Siding, gable fascia, wrap windows/doors trim,
ceiling in stoops (no eave fascia/soffit)
9. Garage Mandoors (Duplexes Only)
- 14 steel doors, frames, hardware,
painted @ $225
10. Other Construction Costs
- Project Management Fees @ 4.9% :l:
- Building Permit
- Contingencies and Inflation
$186,000
Subtotal
$3.150
$448,550
$22,000.00
2,500.00
16,500.00
$41.000
(Without City Costs) Total $489.500
2
A TT ACHMENT 1
ROCKFORD OWNERS ASSOCIATION
1998 CAPITAL IMPROVEMENT PROJECT
OVERVIEW SPECIFICATIONS
(PRELIMINARY)
Construction Consulting & Inspections, Ltd.
January 30, 1998
3
1. WINDOWS
A. Remove all existing window units and dispose of properly.
B. Repair any evident rotting at frames and sills. This work to be on a T &M basis, with
$/hour to be determined in advance. Any brick mold or sill replacement to be with #2
pine stock sufficient to accept aluminum cladding.
C. Prepare openings to accept new windows.
D. Install new windows. Windows to be (or approved equal): Alside Ultra Maxx fusion
welded, solid vinyl double hung windows with screens.
E. Seal entire perimeter of windows to sheathing with 6 inch wide strip of ice/water
shield.
F. Install drip edge "eyebrow" over windows. Drip to be aluminum (matching siding
color) and extend 2 inches past siding.
G. All colors to be determined by Association.
4
2. PATIO DOORS
A. Remove all existing patio doors and dispose of properly.
B. Repair any existing rotting at frames and sills. This work to be on a T&M basis, with
$/hour to be determined in advance. Any brick mold replacement to be with #2 pine
stock sufficient to accept aluminum cladding.
C. Prepare opening to accept new doors.
D. Install new doors. Doors to be (or approved equal): Alside 6100 series vinyl clad
wood patio doors with screens.
E. Seal top and both sides of doors to sheathing with 6 inch wide strip ice/water shield.
F. Install drip edge "eyebrow" over doors unless directly under roof overhang. Drip to be
aluminum (matching siding color) and extend 2 inches past siding.
G. All colors to be determined by Association.
5
3. OVERHEAD GARAGE DOORS
A. Remove 36 existing garage doors, wood door stops, rails, and springs and dispose of
properly.
B. Remove and properly dispose of garage door openers if they do not meet current code.
If they do meet current code, disconnect, reconnect, and adj ust after work is
completed.
C. Install thirty-six new sets of rails and springs appropriate for doors installed.
D. Install thirty-six new 24 gauge steel, prefinished, insulated, raised panel, 'V' rubber
astragal 16' wide garage doors.
E. Install thirty-six vinyl stops with (rubber seals) around doors.
F. Adjust all doors, hardware, springs, stops for proper operation.
G. Door and stop colors to be determined by Association.
6
4. DECKS and ENTRY STOOPS
A. DUPLEX BUILDINGS
1. Rear Decks
a. Remove all existing footings and dispose of properly. Decks to be removed by
others.
b. All decks to be lowered such that the distance from the bottom of the patio
door sill to the top of the deck boards is 2 inches.
c. Cut and remove sidings at rim joist area.
d. Install..4 PCF treated wood rim joists on sheathings (cover sheathing with
ice/water shield strip first). Attach with minimum one lag bolt per joist space;
lag to penetrate into secure attachment substrate minimum two inches.
e. Install aluminum flashings over rim and under (new) siding. Install three inch
minimum strip of ice/water shield over top edge of flashings.
f. Install (2) new 8 inch diameter footings with 16 inch bell-out at bottom for
each deck. Use sonotube forms for footings. Extend footings to 48 inch depth.
Imbed Simpson EPB #44 Post Base (or equivalent) into footing concrete to
accept 4 x 4 posts.
g. Build decks "between" footings and rim joists:
· 4 x 4 redwood posts.
· 2 x 8 (.4 PCF treated) joists with joist hangers.
. Double (.4 PCF treated) 2 x 8 beams covered with "deck seal" products or
equal.
· 5/4 (.4 PCF treated) deck top boards.
. All connectors to be "Deck Zipper" drywall screws with exterior grey
"Stalgard" coating (by Fastenrite: 612-646-9095) except nails to be used for
joist hangers, and other metal connectors.
· Install cross brace diagonally under decks.
h. Build rail system above decks:
· 2 x 2 cedar pickets (4" spacing).
. 2 x 4 cedar top horizontal rails with vertical 2 x 6 cedar support boards
below rails.
· All connectors as in 'h' above.
1. Build privacy fences above and below decks:
. Outer 4 x 4 vertical to be continuation of deck structure support 4 x 4.
. Privacy fence to be board on board (cedar) with 4 x 4 (.4 PCF treated) top
horizontal and 2 x 4 (.4 PC F) treated bottom horizontal.
· All connectors as in 'g' above.
2. Side Entry Stoops
a. Remove all existing footings and dispose of properly. Decks will be removed
by others.
7
b. Save all vertical posts and upper roof areas (all above the deck/rail level).
Remove and properly dispose of all other materials.
c. Replace post footings as needed with 12 inch diameter footings (with 16 inch
bell-out). Use sonotube forms for footings and extend to 48 inch depth. Use
above footing Simpson (or equal) connector to connect post to footings.
d. Rebuild decks with equal sized materials (but .4 PCF treated) and screwed
together (except metal hangers and metal plates). See 4 A1.g above for screw
connectors. Save frames on all decks with block buttresses below.
e. Build rails same as noted for deck rails in 4 AI, above.
f. Build stairs of straight .4 PCF treated 2 x 12 (not cut outs) stringers. Attach (.4
PCF treated) 2x treads to side of stringers with steel L brackets screw
connected from the bottom. Rails to be the same as for decks.
B. FOUR PLEX BUILDINGS
1. Rear Decks
a. Remove garage interior ceiling drywall in all areas where rotted joists exist.
b. Remove and properly dispose of decks, saving all cantilever joists that are not
rotted.
c. Repair any rotting at building rim.
d. Install new .4 PCF treated joists into garage ceiling and attach (splice) to
existing joists -- cantilever new joists for deck supports. Splices to be 8 - 10
feet into garage roofs.
e. All deck details to be the same as for duplex buildings decks 4 AI, except:
o No privacy walls.
o No posts.
2. Front Entry Stoops/Decks
a. All details to be the same as for duplex building decks 4 A 1 except:
o No privacy walls.
b. Stair details to be the same as 4 A2.e.
8
5. ROOFS
A. Remove and properly dispose of all roofing materials down to the wood decks.
B. Remove and properly dispose of all existing guttering (but not downspouts).
C. Remove all roof vents and stack flashings.
D. Inspect roof deck sheathing. Any badly deteriorated sheathing to be replaced with
same thickness (as existing) CDX plywood, fully nailed in place (no staples).
This sheathing replacement to be on a T&M or unit price basis with $/S.F.
and $/hour determined in advance, including all proper disposal of old
sheathing. Contractor to nail existing plywood sheathing when necessary to make it
secure (as part of base price).
E. Install aluminum drip edge/gutter back flashings along all eaves. Drip edge/flashings to
extend far enough up roof to be on sheathing at least one inch -- and down fascia so
as to be at least 21;2 inches into (commercial size) gutter. Face of drip edge/flashings to
be same color as gutters.
F. Install ice/water shield per code requirement. Ice/water to be sealed over drip edge
flashings.
G. Install one payer of reinforced (U.S. manufactured) 15 lb. felt underlayment (approved
by Association) throughout entire roof(s), properly lapped, and extending properly to
all edges. Felt not to be installed under ice/water shield. No felt to be left exposed
overnight or allowed to get wet such that it wrinkles. Any wrinkled felt to be removed
and replaced.
H. Install new Mid America Ridge Master 11.2 (or approved equal) ridge vents onto all
top ridges.
I. Install all new metal dryer or exhaust vents. Vent products to be approved by
Association. All connectors to be rubber grommet screws (colored heads).
J. Install all new flashings on plumbing vent stacks. Flashing products to be approved by
Association.
K. Install CertainTeed XT25 (or approved equal) fiberglass reinforced shingles, using
only roofing nails, on all roofs. Care must be taken so that nails are driven flush (not
over or under driven).
9
L. Install a continuous bead of tar/roof cement under outside edge of shingles along all
rake edges.
M. On 4 plex buildings, replace all step flashings where roofs step up. Also install
ice/water shield on step up side walls (remove siding first).
N. All colors to be determined by Association.
10
6. GUTTERS AND DOWNSPOUTS
1. All existing gutters will be removed by the roofing contractor and disposed of
properly.
2. All existing downspouts will be removed by the siding contractor and disposed of
properly.
3. Install premium quality 5 inch seamless prefinished aluminum (.032 aluminum)
guttering along all eaves. Back pan of gutter to be installed under drip edge/gutter
flashing (already installed by roofer). Spacer/supports to be installed as appropriate
(approved by Association).
4. Any seams or inserts to be sealed with "gutter seal" product or equal in the seams or
laps as the gutters are being installed.
5. Install 3 x 4 aluminum downspouts with minimum elbows. Downspouts to be
connected with square brackets (hidden screws behind downspouts into building and
two side screws into downspouts), not straps.
6. Install (.032 gutter grade) 3 x 4 bottom extenders as appropriate to flow water 3 feet
away from foundation or to appropriate hard surfaces.
7. All colors to be determined by Association.
11
7. EXTERIOR LIGHTS
A. Duplexes Buildings
1. All four exterior lights to be removed and wires capped with wire nuts by siding
contractor. Sider to properly dispose of lights.
2. Siding contractor to install light (mounting) block for all lights.
3. Association will purchase and arrange for installation of all lights:
· Front: at garage, motion sensored; at entry, non sensored.
· Rear: lower, motion sensored; upper, non sensored.
B. Four Plexes Buildings
1. All three exterior lights to be removed and wires capped with wire nuts by siding
contractor. Sider to properly dispose of lights.
2. Siding contractor to install light (mounting) blocks for all lights.
3. Association will purchase and arrange for installation of all lights:
· Front: one, motion sensored.
· Rear: lower, motion sensored; upper, non sensored.
12
8. VINYL SIDING AND ACCESSORIES
A. Remove all existing sidings, shutters, wood 1 x corner trim boards (including on
chimney housings), window/door surround trim boards and dispose of properly. Nail
clean up to be continuous.
B. Repair any damaged sheathing or framing on a T &M basis ($/hour to be determined
in advance).
C. Remove all existing soffits and dispose of properly. Replace any fascia boards (with
#2 pine) that are not in good enough condition to accept fascia aluminum cladding.
Fascia repair/replace will be a T &M item.
D. Remove all existing downspouts and accessories and dispose of properly.
E. Remove and properly dispose of all decks and entry porches/stoop. These items will
be replaced by others, but siding contractor will install rim joist, properly flashed as
siding progresses. Do not remove footings (they will be removed by others).
F. Remove and properly dispose of all lights and wire nut all wires.
G. All lights and electrical outlets to be properly vinyl blocked. Hose bibs to have vinyl
surrounds installed.
H. Remove and properly dispose of all vents on the face of buildings (not roofs). Install
new quality, heavy vinyl vents. Products to be approved by Association.
I. Install Dupont TYVEK housewrap over all building walls to be sided, seams
overlapped minimum 6 inches.
J. All TYVEK to be 100% taped at all joints, seams, tears; and around all windows,
doors, vent openings, and all other openings or penetrations.
K. Install a (.4 PCF treated) 2 x 6 kick plate at the bottoms of all sidings where hard
surfaces or cut grass exists below. Screw kick plate in place and install flashing over
top edge. No painting of plates.
L. Coordinate and make arrangements with cable TV company to get as much coax cable
off walls as possible. Remaining cable to be tucked under siding as much as possible.
M. Address numbers to be removed and properly disposed of. Contractor to install
number plates (one per unit for duplexes, two per unit for four plexes) provided by
Association. All number plates to be located as directed by Association.
13
N. Install premium quality .019 minimum aluminum soffit system under all eaves, as
specifically indicated. This will include the narrow band around all duplex porches (all
50-50 vented).
O. Install .019 minimum fascia cladding on all gable fascia boards and all eave fascia
boards specifically indicated. Install 2x over rake fascias before cladding.
P. Install .019 minimum cladding at the following areas:
1. All windows and doors (mandoors at garage and patio doors) brick molds.
All window sills.
2. Entry doors brick molds and side lights (to the glass). Tuck cladding under storm
frame edges where storms exist. If no storm, clad to first inside comer.
3. Garage overhead doors surrounds. Note that vinyl stop at overhead doors will be
by garage door contractor.
4. Under chimney housings top flashings (caps) and over the top edges of siding and
covers in a "skirt" fashion.
Q. Install new premium quality vinyl shutters in all locations where shutters now exist.
Shutter configuration, quality, and colors to be approved by Association.
R. Caulk all interface areas (siding to cladding) with top quality one part urethane or
butyl rubber caulk. Also caulk open top separations at the comers of all windows
and doors -- and any other open areas in the siding or accessories that may allow
water penetration. All caulk to be hidden but detectable with knife. If cladding flashes
behind J channel and/or siding at least one and one-half inch and a tight seam exists,
no caulking at these ioints is required.
S. Install premium quality nominal 0.044 triple 3 or double 4 or 4.5 vinyl siding and
accessories on all walls where siding currently exists. Installation must be 100%
according to manufacturer's instructions (as a minimum)and those instructions must be
provided prior to start of work. All storage on-site must be in contractor provided
truck or trailer. Manufacturer to be approved by Association prior to bid/quote.
T. All colors/textures for all products to be determined/approved by Association.
U. All removed materials to be placed in a dumpster (by contractors) or hauled from site
daily. If materials are not hauled daily, the Association will have a dumpster placed on
site and charged the contractor.
9. GARAGE MANDOORS
(Duplexes Only)
A. Remove all twenty garage mandoors at duplexes and dispose of properly.
B. Do necessary repairs in surrounds (on T&M basis).
C. Install twenty new steel doors and frames; paint doors.
D. Colors to be determined by Association.
14
APPENDIX B
CONSTRUCTION CONSULTING
SERVICES DESCRIPTION
FOR: ROCKFORD OWNERS ASSOCIATION
NEW HOPE, MINNESOTA
By: Construction Consulting
& Inspections, Ltd.
P. O. Box 390053
Minneapolis, Minnesota 55439
January, 1998
2
General Overview
The intention of this document is to describe necessary activities and projected
professional fees for accompanying various improvements at Rockford Owners Association.
A general description of the improvements are generally as outlined in the Attachment 1,
"Rockford Owners Association, 1998 Capital Improvement Project, Overview Specification
(Preliminary). "
CC&I Activities
It is CC&I's intention to provide engineering and construction services for all activities
throughout the project, within the general scope that is understood and agreed upon.
Additional requested services or scope would be at additional mutually agreed upon fees (at
$120/hour), as would extensive redesigning or unforeseen requirements by the Association or
an authority such as the City or the State.
Segment One (Specifications, Bidding, Negotiations, Contracts)
1. Prepare complete Specifications (and drawings or sketches, as necessary) for all
improvement items (see Attachment I).
2. Interact with Association representatives and up to one meeting with Association board or
membership. Maintain weekly update with Association manager.
3. Interact with City officials as necessary to establish additional requirements.
4. Prepare construction schedule.
5. Negotiate or bid each improvement item (group) to establish contractors and contract
pnces.
6. Present all contractors and prices to Association.
7. Prepare and process (AIA-AI07) contracts for Association signatures.
8. Gain final approvals and assist contractors with permit acquisitions.
9. Interact with Association to assist in set up of budget tracking and invoice payment
process.
3
10. Establish and prepare for start of work estimated at April 15 to May 1, 1998.
Segment Two (Construction Activity)
1. Verify all contractors and vendors as to contract requirements and permit acquisition
requirements (pre-construction meeting with contractors).
2. Overview contractor layouts of all work.
3. Prepare/maintain simple schedule for all work.
4. On-site inspections, problem solving, coordination on a daily basis for all work segments
(see Appendix A). CC&1 will not have a full time on-site inspection, but will inspect work
at least four times per week when primary work activity is going on.
5. Weekly update meetings with Association representative and CC&I project executive.
Monthly update meetings with Association executive and CC&I project manager. Up to
one final meeting with Association board.
6. Review and approval of contractor draw requests to Association.
7. Final inspection and punch list for final completion. Final completion verification to
Association.
Note that the following are currently known specifically not included services in this
phase that will be done only at additional mutually agreed upon fees: invoice payments,
permit acquisition (by contractors), budget tracking.
Schedule (approximate)
Segment One January 30 - May 1, 1998
Segment Two May 1 - October I, 1998
Fees and Terms
CC&I, Ltd. fees for the work outlined in this document will be approximately 3.5 to 4.0%
of the total construction estimate (Appendix A) dated 1/30/98. This will result in a fee of
approximately $22,000 to be split into Segment One ($8,250) and Segment Two ($13,750).
Payments to CC&I, Ltd. to be monthly at a rate of $2750/month for 8 months starting
February 28 (end of first month) and ending September 30 (end of eighth month). Association
will pay CC&I, Ltd. invoices within thirty days of invoice submission date.
4
The Association may terminate the agreement and work by CC&I, Ltd. at any time for a
reasonable cause, but will pay CC&I, Ltd. the fees due up to that point plus a $5,000
severance fee. Any extensive scope changes, as well as change orders in excess of three (3),
due to scope changes, will require an additional fee, to be negotiated at the CC&I, Ltd.
$120/hour rate. Any increases in scope that total $10,000 in cumulative amount will be
charged at 5% of the total amount of change.
Personnel
The CC&I, Ltd. project manager and executive will be John G. Russo, president and
principal of CC&I, Ltd. Mr. Russo will be directing the project for its duration. Another of
CC&I's engineers may be involved in either segment of the project.
'.,",~
"
PETITION REQUESTING IMPOSITION OF
HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE
PURSUANT TO MINN. STAT. SS428A.12 AND 428A.14
We, the undersigned members of the Rockford Homeowners Association and fee owners of the
following units with the Sandpiper Cove Townhome Improvement Area, hereby petition the City of New
Hope for a public hearing to consider our request and hereby request the City to impose a housing
improvement special assessment fee against the individual units within the housing improvement area to
finance construction for housing improvements as described in the January 30, 1998, report from
Construction Consulting and Inspections, Ltd. We understand the City cannot issue bonds to assist in
the financing of these improvements to our property unless this petition is submitted by the undersigned
requesting that this housing improvement fee be imposed per Minn. Stat. SS428A.12 and 428A.14 after
a public hearing to consider the fee. We further understand a housing improvement area has already
been established over our units by New Hope City Ordinance pursuant to a previous petition we signed
requesting the creation of a housing improvement area to make the described improvements in the
Construction Consulting and Inspections. Ltd. report referred to
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4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
TOO: 612-531-5109
City Hall Fax: 612-531-5136
Police Fax: 612-531-5174
Public Works Fax: 612-533-7650
Fire pep't. Fax: 612-531-5175
January 21, 1998
Mr. Jim Girard
Commissioner of Revenue
8th Floor of Revenue Building
10 River Park Plaza
St. Paul, MN 55146
Dear Mr. Girard:
In accordance with Minnesota Statute 428A.13(1), enclosed is a certified copy of
Ordinance No. 98-02, An Ordinance Establishing a Housing Improvement Area for the
Sandpiper Cove Townhome Development Pursuant to Minn. Stat. Chap. 428A. The New
Hope City Council adopted the ordinance at its meeting of January 12, 1998.
Please call me if you have any questions.
Sincerely,
idLULt 4~u
Valerie Leone, CMC
City Clerk
enc.
cc: Steve Sondrall, City Attorney (file no. 99.49802)
Family Styled City
For Family Living
Valerie Leone
From:
To:
Cc:
Subject:
Date:
Steven A. Sondrall
Valerie Leone
Kirk McDonald
Sandpiper Cove Ordinance No. 98-02
Tuesday, January 13, 1998 6:00PM
Minnesota Statutes 428A.13(1) also require that we mail the Minnesota
Commissioner of Revenue a copy of the ordinance within 30 days after its
adoption. Can you please handle this Val and send a certified copy of the
Ordinance to the Commissioner of Revenue. Please copy me on the letter.
Thanks!
'A~
/) ,t./V'-'
~ ' ~I' q t
Page 1
4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
January 15, 1998
Mr. Dan Leaf
Rockford Homeowners Association
8951 42nd Avenue North
New Hope, MN 55427
Subject:
Public Hearing on January 12
Dear Dan and Peter:
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
TOO: 612-531-5109
Mr. Peter Rawski
Rockford Homeowners Association
8921 42nd Avenue North
New Hope, MN 55427
City Hall Fax: 612-531-5136
Police Fax: 612-531-5174
Public Works Fax: ~12-533-7650
Fire oep't. Fax: 612-531-5175
As you are aware, the New Hope City Council approved the ordinance establishing a Housing
Improvement Area at the January 12 Council meeting and notices of the ordinance are being mailed to
all property owners this week. Please keep me updated on the status of possibly reducing the scope of
the project and on your financial plan. Once you have reached some decisions on these issues, I would
suggest that we schedule another meeting. As I indicated, the City may want to make some revisions to
the specifications, and we will continue to inquire about potential financial assistance for low/moderate
income persons.
Please contact me at 531-5119 if you have any questions.
Sincerely,
-~\~~,
Kirk McDonald
Director of Community Development
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Doug Sandstad, Building Official
Jean Coone, General Inspector
Randy Kurtz, Fire Inspector
Improvement Project File No. 600
Family Styled City
For Family living
STEVEN A. SONDRALL
CORRICK & SONDRALL, P.A.
ATTORNEYS AT LAW
Edinburgh Executive Office Plaza
8525 Edinbrook Crossing
Suite #203
Brooklyn Park, Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 425-5867
LEGAL ASSISTANT
MICHAEL R. LAFLEUR
SHARON D. DERBY
MARTIN P. MALECHA
WILLIAM C. STRAIT*
*DUALlFIEO ADA NEUTRAL
January 14, 1998
Valerie Leone
New Hope City Clerk
4401 Xylon Avenue North
New Hope, MN 55428
RE: Sandpiper Cove Housing hnprovement Ordinance
Our File No: 99.49802
Dear Val:
Please find enclosed a revised page 4 to the Sandpiper Cove Housing hnprovement
Ordinance which was considered at the January 12, 1998 Council meeting. The revision
was made to Section 1.805(3). Specifically, the new language permits a partial pay1.nent
of the housing fee within 30 days after adoption of the fee ordinance provided the partial
payment is equal to 25% of the total fee. After the 30-day period is expired, no further
partial payments will be accepted, however the ordinance does permit a prepayment of
the full amount of the unpaid portion of the fee and accrued interest. This was the
direction provided by the City Council at the meeting in connection with this item. Also,
the minutes of that meeting should reflect this fact as well.
Contact me if you have any questions or comments regarding this letter.
Very truly yours,
Steven A. Sondrall
slw
Enclosure
cc: Daniel J. Donahue, City Manager
Kirk Iv1cDonald, rvianagement .Asst.
COUNCIL
REQUEST FOR ACTION
Originating Department
Approved for Agenda
Agenda Section
Public
Hearina
Item No.
By:
n 1-12-98
By:/ /
PUBLIC HEARING/ORDINANCE NO. J02: AN ORDINANCE ESTABLISHING A HOUSING
IMPROVEMENT AREA FOR THE SAND~~PER COVE TOWNHOME DEVELOPMENT, PURSUANT TO
MINN. STAT. S428A (IMPROVEMENT PROJECT NO. 600)
Kirk McDonald
Management Assistant
7.1
City Manager
BACKGROUND
This is a public hearing continued from previous meetings to consider the adoption of an ordinance
establishing a Housing Improvement Area for the Sandpiper Cove Townhome Development
(Improvement Project no. 600). At the June 9, 1997, Council/EDA meeting, staff discussed the option of
the City establishing a Housing Improvement Area to provide financial assistance to upgrade the exterior
of these properties. Sandpiper Cove is a townhouse development located at 8101-8953 42nd Avenue that
contains 36 owner-occupied townhomes. The complex is 20 years old and there are significant exterior
deterioration problems. The association has sought preliminary bids from contractors who estimated that
at least $350,000 is needed to make siding, deck, window, and other improvements. They approached
the City for assistance because, as a townhouse association consisting of individual owners, they have
been rejected by several banks for loans to make the needed improvements. At that meeting, the City
Attorney outlined new legislation and procedures to initiate a program where the City could assess the
benefiting properties similar to a special assessment project. The EDA was generally receptive to this
idea and directed staff to proceed with the preparation of an ordinance.
A public hearing was opened at the July 28 Council meeting to consider this ordinance and the public
hearing was tabled because the association had not yet had an engineering analysis completed to
determine the specific improvements that need to be made to the properties. A description of the
necessary improvements must be identified in the ordinance. The public hearing was tabled until August
25, October 13, November 10, December 8 and January 12 because the hiring of a consultant and the
completion of the engineering analysis was taking longer than anticipated by the association. The
townhouse association conducted a meeting in November where approximately 70 percent of the home-
owners were present and there was a unanimous vote to proceed with the project and to contract with
an engineer to prepare detailed cost estimates. (cont'd.)
MOTION BY
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SECOND ~ f {/jjV-tU/l,; / {iIU...k.)f(j/(J
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i];)ltJJll1 % (( nd ,da1,I/ (t1Jj15 ')
.. / Ii ,.
TO:
Review:
Administration:
Finance:
RFA-OOl
Request for A(~~ion
Page 2
1-12-98
UPDATE
The enclosed Overview Specification and budget estimates were submitted to the City in December and
are in the process of being reviewed by the appropriate inspection personnel. Note that the total
estimated costs of the improvements has increased to almost $600,000 and does not include the 15
percent that the City would add on for legal, financial and administrative costs. The approval of the
ordinance establishing the Housing Improvement Area does not constitute approval of the
specifications, as staff wants to have the opportunity to recommend changes before the specifications
are finalized. The association also met with staff in December to discuss the assessment process and
several options are outlined in the attached correspondence. The association may consider reducing the
scope of the project due to the increased costs. They have also requested that information be made
available to them on potential rehabilitation grant programs for low/moderate income persons that own
units in the complex.
PROCESS
Per the attached correspondence from the City Attorney, the adoption of this Ordinance does not
commit the City to go forward with the housing improvement project. Before the City would be obligated,
a number of things must happen, as follows:
1. The Condominium Association must provide the City with a financial plan prepared by an
independent third party, acceptable to the City and the Association, indicating the Association will be
able to finance the construction, maintenance and operation of the proposed improvements made to
the common elements of the property. The plan should also indicate the Association's long range
plan to conduct and finance other capital improvements that will be necessary to the property.
2. The Association will need to enter into a Development Agreement with the City for the purpose of
implementing the construction of the proposed improvements.
3. A final determination will need to be made regarding the special assessments for costs to each unit
within the Association for the proposed improvements. Once this cost is determined, the City will
then need to hold a second public hearing in connection with the special assessment of these costs
against each housing unit. As part of this public hearing for imposition of special assessments, the
City will need to indicate the assessable amount against each unit.
4. The adoption of proposed Ordinance 98-02 and any resolution imposing special assessments for
cost of the improvement project are also subject to a veto by 35 percent of the homeowners within
the Association within 45 days after the adoption of either the Ordinance or the resolution. As a
result, proposed Ordinance No. 98-02 will not be effective until 45 days after its publication on
January 21, assuming the Ordinance is adopted by the City Council at its January 12, 1998, meeting.
In other words, this Ordinance will not be effective until March 9, 1998. Likewise, a fee resolution is
subject to a veto by 35 percent or more of the homeowners within the improvement area. Therefore,
the City could not fund any construction related costs until the veto time period has expired after
adoption of the fee resolution. Before we can adopt the fee resolution, items 1, 2 and 3 above must
be completed.
5. Even if both veto time periods expire, homeowners within the improvement area may file objections
to the special assessments against their housing units. However, to affect appeal rights a property
owner would need to file a written objection to the Ordinance or the resolution on or before the public
hearing at which the Ordinance or resolution is adopted. Therefore, if we receive no filed objections
to the Ordinance on or before January 12, no property owner will be able to object to the inclusion of
his or her unit within the improvement area. However, since we have not yet noticed a public hearing
Request for A<:.tion
Page 3
1-12-98
to adopt a special assessment fee resolution, all property owners within the improvement area will
still be able to object to a fee levied against their units.
SUMMARY
Adoption of the proposed Ordinance simply initiates the process to implement a housing improvement
project financed by the City and funded by special assessments against the individual housing unit. The
Homeowner's Association, as well as the City, still have a significant amount of work to do prior to the
actual commitment of funds or the sale of bonds for actual improvement costs. It is anticipated that
representatives from Sandpiper Cove will be present at the meeting.
Staff recommends approval of the ordinance.
ORDINANCE NO. 98-02
AN ORDINANCE ESTABLISHING
A HOUSING IMPROVEMENT AREA
FOR THE SANDPIPER COVE TOWNHOME
DEVELOPMENT PURSUANT TO MINN. STAT. CHAP. 428A
The City Council of the City of New Hope ordains:
Sect ion 1. Sect ion 1.80 .. Sandp i pe r Cove Hous i n~ Imp rovement
Area" of the New Hope City Code is hereby added to read as follows:
1.80 Sandpiper Cove Housin~ Improvement Area. The City of New Hope
(hereafter City) hereby establishes pursuant to Minn. Stat.
Chap. 428A a housing improvement area over the property
common 1 y known as the Sandp i pe r Cove Townhome deve 1 opment
which is legally described in Section 1.803 of this Code.
1 .801
Recitals. The City hereby makes the following
recitals in support of its action to establish the
herein housing improvement area:
1. The City is authorized under Minn. Stat.
88428A.11 through 428A.21 to establish by
ordinance housing improvement areas within
which housing improvements are made or
constructed and the costs of the improvements
are paid in whole or in part from fees imposed
within the area.
2 . The. City has de t e r m i n e d a nee d toe s tab 1 ish
the Sandpiper Cove Housing Improvement Area as
defined herein, in order to facilitate certain
improvements to the property all in accordance
with the Housing Improvement Act.
3. The City has consulted with the Rockford
Owners Association and with residents in the
Sandpi per Cov~ Housi ng Improvement Area
regarding the establishment of said housing
improvement area and the housing improvements
to be constructed and financed under this
ordinance.
1 .802
Findin~s. The City hereby makes the following
findings in support of its action to establish the
herein housing improvement area:
1 .803
1 .804
1. The City Council finds that, in accordance
with Minn. Stat. g428A.12, owners of at least
25 percent of the housing units within the
housing improvement area have filed a petition
with the City Clerk requesting a public
hear i ng regard i ng est ab 1 i shment of such
housing improvement area.
2. The City Counci 1 has on July 28, 1997 and by
adjournment thereafter conducted a public
hearing, duly noticed in accordance with Minn.
Stat. 9428A.13, subd. 2, regarding adoption of
this ordinance at which all persons, including
owners of property within the housing
improvement area were given an opportunity to
be heard.
3. The Council finds that, without establishment
of the housing improvement area, the Housing
Improvements (as hereinafter defined) could
not be made by the homeowners association for,
or the housing unit owners in, the Sandpiper
Cove Townhome development.
4. The Council further finds that designation of
sa i d hous i ng imp rovement area is needed to
maintain and preserve the housing units within
such area.
Housing Improvement Area Defined. The Sandpiper
Cove Housing Improvement Area is hereby defined as
that area of the City legally described as follows:
Lots 1 through 59, inclusive, Sandpiper Cove,
all of which is according to the plat(s)
thereof on file and of record in the office of
the Registrar of T~tles, Hennepin County,
Minnesota. Said housing improvement area
consists of 36 housing units as of the
adoption of this section.
Housinq Improvements Defined. For the purposes of
991.80 through 1.809 of this Code, the term
"Housing Improvements" shall mean those
improvements to the housing units, garages, and
common areas within Sandpiper Cove Housing
Improvement Area as set out in t he December 23,
1997 Overview Specifications (Preliminary) prepared
by Construction Consulting & Inspections, Ltd. for
the Rockford Owners Association as follows:
2
1. replacement of 234 window units;
2. replacement of 44 patio doors;
3. replacement of 36 overhead garage doors;
4. rep 1 acement of a 11 rear decks and side ent ry
stoops on 10 duplex buildings and replacement
of all rear decks and front entry stoops/decks
on 4 fourplex buildings;
5. repair of all roofs and installation of new
fiberglass reinforced shingles;
6. replacement of all gutters and downspouts;
7. replacement of all exterior lighting on the
buildings;
8. replacement of all exterior siding, soffits
and fascia including wrap of all windows and
doors, trim and ceilings in stoops;
9. replacement of 20 garage mandoors in the
duplex buildings;
10. t he above ment i oned const ruct ion sha 11 a 1 so
include all incidental work and repairs to
finish the construction to industry standards
and comply with all building codes regardless
of whether said incidental work is described
in this Code or in the December 23, 1997
Const ruct ion Consu It i ng & Inspect ions, Lt d.
Overview Specifications.
11. Hous i ng Improvement s sha 11 a 1 so be deemed to
include the following costs incurred by either
the Rockford Owners Association or the City:
a. All costs of architectural and
engineering services in connection with
the activities described in this Section.
b. All administration, legal and consultant
costs in connection with the housing
improvement area.
c.
Cost s of issuance of bonds, if any,
finance hous i ng imp rovement sunde r
Hous i ng Imp rovement Act, sub j ect to
terms of Section 1.805 of this Code.
to
the
the
3
1 .805
Housing Improvement Fee. The City may, by
resolution adopted in accordance with the petition,
hearing and notice procedures required under Minn.
Stat. Chap. 428A known as the Housing Improvement
Act, impose a fee on the housing units within the
Sandpiper Cove Housing Improvement Area, at a rate,
term or amount sufficient to produce revenues
required to provide the Housing Improvements
(hereinafter referred to as the "Housing
Improvement Fee"), subject to the terms and
conditions set forth in this Section.
1 . Any Hous i ng Imp rovement Fee sha 11 be imposed
on the basis of the total cost of.the Housing
Improvements to be financed by the Housing
Improvement Fee, divided by the number of
housing units in the housing improvement area
as of the date of any fee resolution.
2. Any Housing Improvement Fee shall be imposed
and payable for a period no greater than 20
years after the first installment is due and
payable.
3. Any Housing Improvement Fee shall be
prepayable in full or in part by any housing
unit owners within 30 days after the effective
date of the resolution setting the Housing
Improvement Fee, provided that a partial
prepayment must be. at least 25% of the total
fee for that unit. After such 30-day period
the unpaid portion of any Housing Improvement
Fee and accrued interest shall be prepayable
only in the full amount.
4. The resolution imposing any Housing
Improvement Fee shall provide that any fee (or
portion thereof) not prepaid by the housing
unit owner shall be deemed to include simple
interest on unpaid housing improvement costs
at a rate of 8% per annum.
5. Any Housing Improvement Fee shall be collected
at the same time and in the same manner as
provided for payment and collection of ad
valorem taxes, in accordance with Minn. Stat.
S428A.05. As set forth in Minn. Stat.
e428A. 14, the Hous i ng Improvement Fee is not
included in the calculation of levies or
limits on levies imposed under any law or
charter.
4
1 .806
1 .807
1 .808
6. Any Housing Improvement Fee shall not exceed
the amount specified in the notice of public
hearing regarding the approval of such fee;
provided, however, that the Housing
Improvement Fee may be reduced after approval
of the resolution setting the Housing
Imp rovement Fee, in the manne r spec if i ed in
such resolution.
Issuance of Bonds. At any time after a contract
with Rockford Owners Association, Inc. for
construction of all or part of the housing
improvements has been entered into or the work has
been ordered, and the 30-day period for prepayment
of the Housing Improvement Fee has expired as
described in 81.805 hereof, the Council may issue
bonds in the principal amount necessary to finance
the cost of the housing improvements that have not
been prepaid together with costs of issuance of the
bonds. Such bonds shall be issued pursuant to and
in accordance with Minn. Stat. 8428A.16 of the
Housing Improvement Act.
Annual Reports.
1 . On August 15, 1998 and each August 15
thereafter until all housing improvement fees
derived in the housing improvement area are
fully paid, the Rockford Owners Association,
Inc. (and any successor in interest) shall
submit to the City Clerk a copy of the
association's audited financial statements.
2. Rockford Owners Association, Inc. (and any
successor in interest) shall also submit to
the City any other reports or information at
the times and as requ i red by any cont ract
entered into between that entity and the City.
Notice of Right to File Obiections. Within five
days after the adoption of 891.80 through 1.809 of
this Code, the City Clerk is authorized and
directed to mail to the owner of each housing unit
in the Sandpiper Cove Housing Improvement Area: a
summary of these Code sections; notice that owners
sub j ect tot he proposed Hous i ng Improvement Fee
have a right to veto this.ordinance if owners of at
least 35 percent of the housing units within the
5
Sandp i pe r Cove Hous i ng Improvement Area f i 1 e an
objection with the City Clerk before the effective
date of this ordinance; and notice that a copy of
this ordinance is on file with the City Clerk for
public inspection. Sections 1.80 through 1.809 of
this Code shall be effective 45 days after their
passage and publication.
1 .809
Amendment. Th is ord i nance may be amended by the
Council upon compliance with the public hearing and
notice requirements set forth in Minn. Stat.
9428A.13, subd. 2 of the Housing Improvement Act.
Section 2. Effective Date. This Ordinance shall be effective
45 days after its passage and publication.
Dated the
12th
day of
January
, 1998.
5f~A
W. Peter Enck, Mayor
Attest: YLtW.uC~.R-
Valerie Leone, City Clerk
Pub 1 i shed in t he New Hope-Go 1 den Va 11 ey Sun-Post the 21st
January , 1998.)
day of
6
STEV;::N A. SONDRALL
MICHAEL R. LAFLEUR
CORRICK & SONDRALL, P.A.
ArrOfu'lEYS AT LAW
Edinburgh Executive Office Plaza
8525 Edinbrook Crossing
Suite #203
Brooklyn Park. Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 425-5867
LEGAL ASSISTANT
SHARON D. DERBY
MARTIN P. MALECHA
WILLIAM C. STRAIT*
*'OUALlFIED ADR NEUTRAL
January 6, 1998
Kirk McDonald
Management Asst.
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE: Sandpiper Cove Housing Improvement Area/Ord. No. 98-02
Our File No: 99.49802
Dear Kirk:
Please find enc 1 osed proposed Ord i nance No. 98-02 ent it 1 ed An
Ordinance Establishing a Housing Improvement Area for the Sandpiper
Cover Townhome Development Pursuant to Minn. Stat. Chap. 428A.
This Ordinance is for consideration at the January 12, 1998 Council
meeting.
Please note this Ordinance was originally numbered 97-23. Since
the Ordinance was not adopted in 1997, it has been assigned a new
number to indicate its adoption in 1998.
Further, the adoption of this Ordinance does not commit the City to
go forward with the housing improvement project set out in the
Ord i nance and in the Decembe r 23, 1997 repo rt from Const ruct ion
Consulting & Inspections, Ltd. Before the City would be obligated
to fund the improvement project as proposed in the Consultant's
report, a number of things must happen as follows:
1. The Condominium Association must provide the City with a
financial plan prepared by a independent third party,
acceptable to the City and the Association, indicating
the Association will be able to finance the construction,
maintenance and operation of the proposed improvements
made to the common elements of the property. The plan
should also indicate the Association's long range plan to
conduct and finance other capital improvements that will
be necessary to the property. I mentioned this
requirement in my July 30, 1997 letter concerning this
project, however, I do not believe the Association has
yet to address this issue or indicate who they will use
to prepare this financial plan.
Kirk McDonald
January 6, 1998
Page 2
2. The Association will need to enter into a Development
Agreement with the City for the purpose of implementing
the const ruct i on of t he proposed improvement s as out 1 i ned
in the Consultant's report.
3. A final determination will need to be made regarding the
special assessments for costs to each unit within the
Association for the proposed improvements._ Once this
cost is determined, the City will -then need to hold a
second public hearing in connection witn the special
assessment of these costs against each housing unit. As
part of this public hearing for imposition of special
assessment s, we wi 11 need to i nd i cat e the assessab 1 e
amount against each unit. We will not be able to
increase the assessable amount after the public hearing,
however, we will be able to decrease the amount. As a
resul t, we wi 11 need to bui 1 din a cont i ngency for
improvement cost overruns to insure the project can be
fully funded by special assessments against units within
the Association. Otherwise, we will be left with an
uncompleted project or the homeowners in the Association
will need to privately raise additional funds to complete
the project if its costs exceed our estimate as set out
in the public hearing notices for imposition of the
special assessments.
4. The adoption of proposed Ordinance 98-02 and any
resolution imposing special assessments for cost of the
improvement project are also subject to a veto by 35% of
the homeowners within the Association within 45 days
after the adoption of either the Ordinance or the
resolution. As a result, proposed Ordinance No. 98-02
will not be effective until 45 days after its publication
on January 21st, assuming the Ordinance is adopted by the
City Council at its January 12,1998 meeting. In other
words, this Ordinance will not be effective until March
9, 1998. Likewise, a fee resolution is subject to a veto
by 35% or more of the homeowners within the improvement
area. Therefore, the City could not fund any
construction related costs until the veto time period has
expired after adoption of the fee resolution. Before we
can adopt the fee resolution, items 1, 2 and 3 above must
be completed.
,
Kirk McDonald
January 6, 1998
Page 3
5. Even if both veto time periods expire, homeowners within
the improvement area may file objections to the special
assessments against their housing units. However, to
affect appeal rights a property owner would need to file
a written objection to the Ordinance or the resolution on
or before the public hearing at which the Ordinance or
resolution is adopted. Therefore, if we receive no filed
objections to the Ordinance on or before January 12th, no
property owner will be able to object to the inclusion of
his or her unit within the improvement area. However,
since we have not yet noticed a public hearing to adopt
a special assessment fee resolution, all property owners
within the improvement area will still be able to object
to a fee levied against their units.
I n summary, adopt i on of the proposed Ord i nance enc 1 osed simp 1 y
initiates the process to implement a housing improvement project
financed by the City and funded by special assessments against the
individual housing unit. The Homeowner's Association, as well as
the City, still have a significant amount of work to do prior to
t he act ua 1 commitment of funds or t he sale of bonds fo r act ua 1
improvement costs. Please contact me if you have any questions or
comment s about the enc 1 osed Ord i nance or cont i nu i ng process and
procedures towards implementing a housing improvement project at
the Sandpiper Cove Development.
Very truly yours,
~
Steven A. Sondrall
s1t3
Enclosure
cc: Daniel J. Donahue, City Manager
Valerie Leone, City Clerk (w/enc)
CONSTRUCTION
CONSULTING &
INSPECTIONS, LTD.
December 23, 1997
To: Peter Martignacco - Rockford Association
Dan Leak - Rockford Association
Kirk McDonald - City of New Hope
Steven Sondrall - Corrick and Sondrall
From: John Russo, Ph.D.
CC&1, Ltd.
Re: Rockford Association
New Hope
Enclosed are the final preliminary Overview Specification (dated 12/23/97) and Budget
Estimates (dated 12/23/97). Unless one of the parties changes the scope of the project, these
documents can be used for the 1/12/97 bond actions.
Please call (944-7137) if you have questions.
Pentagon Towers, Box 36184
Minneapolis, Minnesota 55435
(612}944-7137
FAX (612) 944-7018
CONSTRUCTION
CONSULTING &
INSPECTIONS, LTD.
Rockford Owners Association
New Hope, Minnesota
1998 CAPITAL PROJECT
BUDGET ESTIMATE - CONSTRUCTION (12/23/97)
1. Windows (234)
- Double Hung; vinyl, Low E, argon $65,200.00
- Frame repair (est.) 5,000.00
- Reframe 8833-8931 1.000.00
$71,200
2. Patio Doors (44)
- Vinyl, Low E, argon $39,600.00
- Frame repair (est.) 3.500.00
$43,100
3. Overhead Garage Doors (36)
- 24 g. steel, including new springs and
rails, insulated
- Does NOT include new openers
$22,500
4. Decks and Stoops
- Duplexes (10)
. Decks $30,000.00
. Stoops/stairs 20.000.00
$50,000
- Four Plexes (4)
. Decks $32,000.00
. Stoops/stairs 16.500.00
$48,500
5. Roofs (All Buildings)
- Duplexes (10) $65,000.00
- Four Plexes (4) 35,000.00
- Repairs to sheathing (est.) 1.600.00
$101,600
Pentagon Towers, Box 36184
Minneapolis, Minnesota 55435
(612) 944-7137
FAX (612) 944-7018
6. Gutters/Downs (All Buildings)
- 5" gutters, 3 x 4 downs, aluminum,
all eaves
7. Exterior Lights
- Duplexes (20 units)
· 4 lights/unit (80 total) @ $50
- Four Plexes (16 units)
· 3 lights/unit (48 total) @ $50
8. Vinyl Siding and Accessories
- Siding, soffits, fascia, wrap windows/doors
trim, ceiling in stoops
9. Garage Mandoors (Duplexes Only)
- 14 steel doors, frames, hardware,
painted @ $225
10. Other Construction Costs
- Project Management Fees @ 4.25% :i:
- Building Permit
- Contingencies and Inflation @ 3%
$11,500
$4,000.00
2,400.00
$6,400
$199,000
Subtotal
$3.150
$556,950
$23,875.00
2,600.00
16.500.00
$42.975
(Without City Costs) Total $599.925
2
ROCKFORD OWNERS ASSOCIATION
OVERVIEW SPECIFICATIONS
(PRELIMINARY)
Construction Consulting & Inspections, Ltd.
December 23, 1997
3
1. WINDOWS
A. Remove all existing window units and dispose of properly.
B. Repair any evident rotting at frames and sills. This work to be on a T&M basis, with
$/hour to be determined in advance. Any brick mold or sill replacement to be with #2
pine stock sufficient to accept aluminum cladding.
C. Prepare openings to accept new windows.
D. Install new windows. Windows to be (or approved equal): Alside Ultra Maxx fusion
welded, solid vinyl double hung windows with screens.
E. Seal entire perimeter of windows to sheathing with 6 inch wide strip of ice/water
shield.
F. Install drip edge "eyebrow" over windows. Drip to be aluminum (matching siding
color) and extend 2 inches past siding.
G. All colors to be determined by Association.
4
2. PATIO DOORS
A. Remove all existing patio doors and dispose of properly.
B. Repair any existing rotting at frames and sills. This work to be on a T&M basis, with
$/hour to be determined in advance. Any brick mold replacement to be with #2 pine
stock sufficient to accept aluminum cladding.
C. Prepare opening to accept new doors.
D. Install new doors. Doors to be (or approved equal): Alside 6100 series vinyl clad
wood patio doors with screens.
E. Seal top and both sides of doors to sheathing with 6 inch wide strip ice/water shield.
F. Install drip edge "eyebrow" over doors unless directly under roof overhang. Drip to be
aluminum (matching siding color) and extend 2 inches past siding.
G. All colors to be determined by Association.
5
3. OVERHEAD GARAGE DOORS
A. Remove 36 existing garage doors, wood door stops, rails, and springs and dispose of
properly.
B. Remove and properly dispose of garage door openers if they do not meet current code.
If they do meet current code, disconnect, reconnect, and adjust after work is
completed.
C. Install thirty-six new sets of rails and springs appropriate for doors installed.
D. Install thirty-six new 24 gauge steel, prefinished, insulated, raised panel, 'V' rubber
astragal 16' wide garage doors.
E. Install thirty-six vinyl stops with (rubber seals) around doors.
F. Adjust all doors, hardware, springs, stops for proper operation.
G. Door and stop colors to be determined by Association.
6
4. DECKS and ENTRY STOOPS
A. DUPLEX BUILDINGS
1. Rear Decks
a. Remove all existing footings and dispose of properly. Decks to be removed by
others.
b. All decks to be lowered such that the distance from the bottom of the patio
door sill to the top of the deck boards is 2 inches.
c. Cut and remove sidings at rim joist area.
d. Install..4 PCF treated wood rim joists on sheathings (cover sheathing with
ice/water shield strip first). Attach with minimum one lag bolt per joist space;
lag to penetrate into secure attachment substrate minimum two inches.
e. Install aluminum flashings over rim and under (new) siding. Install three inch
minimum strip of ice/water shield over top edge of flashings.
f. Install (2) new 8 inch diameter footings with 16 inch bell-out at bottom for
each deck. Use sonotube forms for footings. Extend footings to 48 inch depth.
Imbed Simpson EPB #44 Post Base (or equivalent) into footing concrete to
accept 4 x 4 posts.
g. Build decks "between" footings and rim joists:
· 4 x 4 redwood posts.
· 2 x 8 (.4 PCF treated) joists with joist hangers.
· Double (.4 PCF treated) 2 x 8 beams covered with "deck seal" products or
equal.
· 5/4 (.4 PCF treated) deck top boards.
· All connectors to be "Deck Zipper" drywall screws with exterior grey
"Stalgard" coating (by Fastenrite: 612-646-9095) except nails to be used for
joist hangers, and other metal connectors.
· Install cross brace diagonally under decks.
h. Build rail system above decks:
· 2 x 2 cedar pickets (4" spacing).
· 2 x 4 cedar top horizontal rails with vertical 2 x 6 cedar support boards
below rails.
· All connectors as in 'h' above.
1. Build privacy fences above and below decks:
· Outer 4 x 4 vertical to be continuation of deck structure support 4 x 4.
· Privacy fence to be board on board (cedar) with 4 x 4 (.4 PCF treated) top
horizontal and 2 x 4 (.4 PCF) treated bottom horizontal.
. All connectors as in 'g' above.
2. Side Entry Stoops
a. Remove all existing footings and dispose of properly. Decks will be removed
by others.
7
b. Save all vertical posts and upper roof areas (all above the deck/raillevel).
Remove and properly dispose of all other materials.
c. Replace post footings as needed with 12 inch diameter footings (with 16 inch
bell-out). Use sonotube forms for footings and extend to 48 inch depth. Use
above footing Simpson (or equal) connector to connect post to footings.
d. Rebuild decks with equal sized materials (but .4 PCF treated) and screwed
together (except metal hangers and metal plates). See 4 A1.g above for screw
connectors. Save frames on all decks with block buttresses below.
e. Build rails same as noted for deck rails in 4 AI, above.
f. Build stairs of straight .4 PCF treated 2 x 12 (not cut outs) stringers. Attach (.4
PCF treated) 2x treads to side of stringers with steel L brackets screw
connected from the bottom. Rails to be the same as for decks.
B. FOUR PLEX BUILDINGS
1. Rear Decks
a. Remove garage interior ceiling drywall in all areas where rotted joists exist.
b. Remove and properly dispose of decks, saving all cantilever joists that are not
rotted.
c. Repair any rotting at building rim.
d. Install new .4 PCF treated joists into garage ceiling and attach (splice) to
existing joists -- cantilever new joists for ~eck supports. Splices to be 8 - 10
feet into garage roofs.
e. All deck details to be the same as for duplex buildings decks 4 AI, except:
· No privacy walls.
· No posts.
2. Front Entry StoopslDecks
a. All details to be the same as for duplex building decks 4 A 1 except:
· No privacy walls.
b. Stair details to be the same as 4 A2.e.
8
5. ROOFS
A. Remove and properly dispose of all roofing materials down to the wood decks.
B. Remove and properly dispose of all existing guttering (but not downspouts).
C. Remove all roof vents and stack flashings.
D. Inspect roof deck sheathing. Any badly deteriorated sheathing to be replaced with
same thickness (as existing) COX plywood, fully nailed in place (no staples).
This sheathing replacement to be on a T &M or unit price basis with $/S.F.
and $/hour determined in advance, including all proper disposal of old
sheathing. Contractor to nail existing plywood sheathing when necessary to make it
secure (as part of base price).
E. Install aluminum drip edge/gutter back flashings along all eaves. Drip edge/flashings to
extend far enough up roof to be on sheathing at least one inch -- and down fascia so
as to be at least 2Yz inches into (commercial size) gutter. Face of drip edge/flashings to
be same color as gutters.
F. Install ice/water shield per code requirement. Ice/water to be sealed over drip edge
flashings.
G. Install one payer of reinforced (U.S. manufactured) 15 lb. felt underlayment (approved
by Association) throughout entire roof(s), properly lapped, and extending properly to
all edges. Felt not to be installed under ice/water shield. No felt to be left exposed
overnight or allowed to get wet such that it wrinkles. Any wrinkled felt to be removed
and replaced.
H. Install new Mid America Ridge Master 11.2 (or approved equal) ridge vents onto all
top ridges.
I. Install all new metal dryer or exhaust vents. Vent products to be approved by
Association. All connectors to be rubber grommet screws (colored heads).
J. Install all new flashings on plumbing vent stacks. Flashing products to be approved by
Association.
K. Install CertainTeed XT25 (or approved equal) fiberglass reinforced shingles, using
only roofing nails, on all roofs. Care must be taken so that nails are driven flush (not
over or under driven).
9
L. Install a continuous bead of tar/roof cement under outside edge of shingles along all
rake edges.
M. On 4 plex buildings, replace all step flashings where roofs step up. Also install
ice/water shield on step up side walls (remove siding first).
N. All colors to be determined by Association.
10
6. GUTTERS AND DOWNSPOUTS
1. All existing gutters will be removed by the roofing contractor and disposed of
properly.
2. All existing downspouts will be removed by the siding contractor and disposed of
properly.
3. Install premium quality 5 inch seamless prefinished aluminum guttering along all
eaves. Back pan of gutter to be installed under drip edge/gutter flashing (already
installed by roofer). Spacer/supports to be installed as appropriate (approved by
Association).
4. Any seams or inserts to be sealed with "gutter seal" product or equal in the seams or
laps as the gutters are being installed.
5. Install 3 x 4 aluminum downspouts with minimum elbows. Downspouts to be
connected with square brackets (hidden screws behind downspouts into building and
two side screws into downspouts), not straps.
6. Install (.032 gutter grade) 3 x 4 bottom extenders as appropriate to flow water 3 feet
away from foundation or to appropriate hard surfaces.
7. All colors to be determined by Association.
11
7. EXTERIOR LIGHTS
A. Duplexes Buildings
1. All four exterior lights to be removed and wires capped with wire nuts by siding
contractor. Sider to properly dispose of lights.
2. Siding contractor to install light (mounting) block for all lights.
3. Association will purchase and arrange for installation of all lights:
· Front: at garage, motion sensored; at entry, non sensored.
· Rear: lower, motion sensored; upper, non sensored.
B. Four Plexes Buildings
1. All three exterior lights to be removed and wires capped with wire nuts by siding
contractor. Sider to properly dispose of lights.
2. Siding contractor to install light (mounting) blocks for all lights.
3. Association will purchase and arrange for installation of all lights:
· Front: one, motion sensored.
· Rear: lower, motion sensored; upper, non sensored.
12
8. VINYL SIDING AND ACCESSORIES
A. Remove all existing sidings, shutters, wood 1 x corner trim boards (including on
chimney housings), window/door surround trim boards and dispose of properly. Nail
clean up to be continuous.
B. Repair any damaged sheathing or framing on a T &M basis ($/hour to be determined
in advance).
C. Remove all existing soffits and dispose of properly. Replace any fascia boards (with
#2 pine) that are not in good enough condition to accept fascia aluminum cladding.
Fascia repair/replace will be a T &M item.
D. Remove all existing downspouts and accessories and dispose of properly.
E. Remove and properly dispose of all decks and entry porches/stoop. These items will
be replaced by others, but siding contractor will install rim joist, properly flashed as
siding progresses. Do not remove footings (they will be removed by others).
F. Remove and properly dispose of all lights and wire nut all wires.
G. All lights and electrical outlets to be properly vinyl blocked. Hose bibs to have vinyl
surrounds installed.
H. Remove and properly dispose of all vents on the face of buildings (not roofs). Install
new quality, heavy vinyl vents. Products to be approved by Association.
1. Install Dupont TYVEK housewrap over all building walls to be sided, seams
overlapped minimum 6 inches.
1. All TYVEK to be 100% taped at all joints, seams, tears; and around all windows,
doors, vent openings, and all other openings or penetrations.
K. Install a (.4 PCF treated) 2 x 6 kick plate at the bottoms of all sidings where hard
surfaces or cut grass exists below. Screw kick plate in place and install flashing over
top edge. No painting of plates.
L. Coordinate and make arrangements with cable TV company to get as much coax cable
off walls as possible. Remaining cable to be tucked under siding as much as possible.
M. Address numbers to be removed and properly disposed of. Contractor to install
number plates (one per unit for duplexes, two per unit for four plexes) provided by
Association. All number plates to be located as directed by Association.
13
N. Install premium quality .019 minimum aluminum soffit system under all eaves,
including narrow band around all duplex porches (all 50-50 vented).
O. Install.O 19 minimum fascia cladding on all fascia boards including up rakes. Install
2x over all rake fascias before cladding.
P. Install .019 minimum cladding at the following areas:
1. All windows and doors (mandoors at garage and patio doors) brick molds.
All window sills.
2. Entry doors brick molds and side lights (to the glass). Tuck cladding under storm
frame edges where storms exist. If no storm, clad to first inside corner.
3. Garage overhead doors surrounds. Note that vinyl stop at overhead doors will be
by garage door contractor.
4. Under chimney housings top flashings (caps) and over the top edges of siding and
covers in a "skirt" fashion.
Q. Install new premium quality vinyl shutters in all locations where shutters now exist.
Shutter configuration, quality, and colors to be approved by Association.
R. Caulk all interface areas (siding to cladding) with top quality one part urethane or
butyl rubber caulk. Also caulk open top separations at the corners of all windows
and doors -- and any other open areas in the siding or accessories that may allow
water penetration. All caulk to be hidden but detectable with knife. If cladding flashes
behind J channel and/or siding at least one and one-half inch and a tight seam exists,
no caulking at these ioints is required.
S. Install premium quality nominal 0.044 triple 3 or double 4 or 4.5 vinyl siding and
accessories on all walls where siding currently exists. Installation must be 100%
according to manufacturer's instructions (as a minimum)and those instructions must be
provided prior to start of work. All storage on-site must be in contractor provided
truck or trailer. Manufacturer to be approved by Association prior to bid/quote.
...
T. All colors/textures for all products to be determined/approved by Association.
U. All removed materials to be placed in a dumpster (by contractors) or hauled from site
daily. If materials are not hauled daily, the Association will have a dumpster placed on
site and charged the contractor.
9. GARAGE MANDOORS
(Duplexes Only)
A. Remove all twenty garage mandoors at duplexes and dispose of properly.
B. Do necessary repairs in surrounds (on T&M basis).
C. Install twenty new steel doors and frames; paint doors.
D. Colors to be determined by Association.
14
/ --
01~1/
4401 Xylon Avenue North
New Hope. /v1innesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
TOO: 612-531-5109
City i-4al! Pax: 512.53".5':6
Police Pax: 612-53t-51-J
Public Works ,=ax: 612-533-7550
Fire Oep't. Fax: 612-531-5175
December 29, 1997
Mr. Dan Leaf
Rockford Homeowners Association
8951 42nd Avenue North
New Hope, MN 55427
Mr. Peter Rawski
Rockford Homeowners Association
8921 42nd Avenue North
New Hope, MN 55427
Subject:
Assessments for Sandpiper Cove Housing Improvement Project
Gentlemen:
This letter is in follow-up to our December 12 meeting. One of the issues discussed at that meeting was
the assessment payments. We indicated to you that for routine assessment projects, such as street
improvements, the amount assessed usually has equal principal payments and declining interest, so that
the total payment declines each year over the life of the assessment. This is the process utilized by
Hennepin County. The Finance Director has calculated the attached spreadsheets showing the routine
"declining assessment rate" schedule based on projects ranging in various amounts from $500,000.00 to
$625,000.00. For example, for a $500,000.00 project, the total payment in year one would be $1,805.57
per unit ($694.45 principal and $1,111.12 interest). The payment in year twenty would be $750.01 per
unit ($694.45 principal and $55.56 interest). The total paid out per unit over the life of the project would
be $25,555.76.
You indicated that these fluctuating payments could be a hardship on some of the homeowners and
inquired if the City would consider equal annual assessment installments. The Finance Director also
. checked with Hennepin County on this issue. Hennepin County will not maintain the paperwork on the
assessments if they are equal amounts; the City would have to maintain separate records for this
project. However, the City Manager indicated that if this single issue will make or break the project, he
will recommend to the Council that the City maintain the records and assess an equal amount per year.
While the Finance Director did not develop a detailed spreadsheet for this scenario, he did develop the
attached schedule labeled "equal payments." If the assessments were paid equally, the annual amount
due would be $1,414.63 with a $500,000.00 improvement. Note that the total cost of the "equal
payments" proposal is $2,736.75 more per unit over the life of the project than the "equal principal"
method.
Please review/discuss each of these methods with your Association as soon as possible and let me
kno.w what method you would prefer for the project. I would appreciate it if you could communicate your
thoughts on this to me by January 7 so this information is available for the January 12 public hearing.
Family Styled City ~~ For Family living
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City of New Hope
Payment Schedule for Proposed Assessments
Sandpiper Cove
Amortization Schedules for Equal Princial Payments
Assessment $ 500,000
Assessment Per Unit Based
on 36 Units $ 13,889
Term 20 Years
Interest Rate 8%
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Year Principal Interest Total Payment Balance
$ 13,889.00
1 694.45 1,111.12 1,805.57 13,194.55
2 694.45 1,055.56 1,750.01 12,500.10
3 694.45 1,000.01 1,694.46 11,805.65
4 694.45 944.45 1,638.90 11 ,111.20
5 694.45 888.90 1,583.35 10,416.75
6 694.45 833.34 1,527.79 9,722.30
7 694.45 777.78 1,4 72.23 9,027.85
8 694.45 722.23 1,416.68 8,333.40
9 694.45 666.67 1,361.12 7,638.95
10 694.45 611.12 1,305.57 6,944.50
11 694.45 555.56 1,250.01 6,250.05
12 694.45 500.00 1,194.45 5,555.60
13 694.45 444.45 1,138.90 4,861.15
14 694.45 388.89 1,083.34 4,166.70
15 694.45 333.34 1,027.79 3,4 72.25
16 694.45 277.78 972.23 2,777.80
17 694.45 222.22 916.67 2,083.35
18 694.45 166.67 861 .12 1,388.90
19 694.45 111.11 805.56 694.45
20 694.45 55.56 750.01 (0.00)
Total Payments $ 25,555.76
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City of New Hope
Payment Schedule for Proposed Assessments
Sandpiper Cove
Assessment $ 525,000
Assessment Per Unit Based
on 36 Units $ 14,583
Term 20 Years
Interest Rate 8%
Year Principal Interest Total Payment Balance
$ 14,583.00
1 729.15 1,166.64 1,895.79 13,853.85
2 729.15 1,108.31 1,837.46 13,124.70
3 729.15 1,049.98 1,779.13 12,395.55
4 729.15 991.64 1,720.79 11,666.40
5 729.15 933.31 1,662.46 10,937.25
6 729.15 874.98 1,604.13 10,208.10
7 729.15 816.65 1,545.80 9,478.95
8 729.15 758.32 1,487.47 8,749.80
9 729.15 699.98 1,429.13 8;020.65
10 729.15 641.65 1,370.80 7,291.50
11 729.15 583.32 1,312.47 6,562.35
12 729.15 524.99 1,254.14 5,833.20
13 729.15 466.66 1,195.81 5,104.05
14 729.15 408.32 1,137.47 4,374.90
15 729.15 349.99 1,079.14 3,645.75
16 729.15 291.66 1,020.81 2,916.60
17 729.15 233.33 962.48 2,187.45
18 729.15 175.00 904.15 1,458.30
19 729.15 116.66 845.81 729.15
20 729.15 58.33 787.48 0.00
Total Payments $ 26,832.72
City of New Hope
Payment Schedule for Proposed Assessments
Sandpiper Cove
Assessment $ 550,000
Assessment Per Unit Based
on 36 Units $ 15,278
Term 20 Years
Interest Rate 8%
Year Principal Interest Total Payment Balance
$ 15,278.00
1 763.90 1 ,222.24 1,986.14 14,514.10
2 763.90 1,161.13 1,925.03 13,750.20
3 763.90 1,100.02 1,863.92 12,986.30
4 763.90 1,038.90 1,802.80 12,222.40
5 763.90 977.79 1,741.69 11,458.50
6 763.90 916.68 1,680.58 10,694.60
7 763.90 855.57 1,619.47 9,930.70
8 763.90 794.46 1,558.36 9,166.80
9 763.90 733.34 1,497.24 8,402.90
10 763.90 672.23 1,436.13 7,639.00
11 763.90 611.12 1,375.02 6,875.10
12 763.90 550.01 1,313.91 6,111 .20
13 763.90 488.90 1,252.80 5,347.30
14 763.90 427.78 1,191.68 4,583.40
15 763.90 366.67 1,130.57 3,819.50
16 763.90 305.56 1,069.46 3,055.60
17 763.90 244.45 1,008.35 2,291.70
18 763.90 183.34 947.24 1,527.80
19 763.90 122.22 886.12 763.90
20 763.90 61.11 825.01 0.00
Total Payments $ 28,111.52
City of New Hope
Payment Schedule for Proposed Assessments
Sandpiper Cove
Assessment $ 575,000
Assessment Per Unit Based
on 36 Units $ 15,972
Term 20 Years
Interest Rate 8%
Year Principal Interest Total Payment Balance
$ 15,972.00
1 798.60 1,277.76 2,076.36 15,173.40
2 798.60 1,213.87 2,012.47 14,374.80
3 798.60 1,149.98 1,948.58 13,576.20
4 798.60 1,086.10 1,884.70 12,777.60
5 798.60 1,022.21 1,820.81 11,979.00
6 798.60 958.32 1,756.92 11,180.40
7 798.60 894.43 1,693.03 10,381.80
8 798.60 830.54 1,629.14 9,583.20
9 798.60 766.66 1,565.26 8,784.60
10 798.60 702.77 1,501.37 7,986.00
11 798.60 638.88 1,437.48 7,187.40
12 798.60 574.99 1,373.59 6,388.80
13 798.60 511.10 1,309.70 5,590.20
14 798.60 447.22 1,245.82 4,791.60
15 798.60 383.33 1,181.93 3,993.00
16 798.60 31 9.44 1 , 11 8.04 3,194.40
17 798.60 255.55 1,054.15 2,395.80
18 798.60 191.66 990.26 1,597.20
19 798.60 127.78 926.38 798.60
20 798.60 63.89 862.49 (0.00)
Total Payments $ 29,388.48
City of New Hope
Payment Schedule for Proposed Assessments
Sandpiper Cove
Assessment $ 600,000
Assessment Per Unit Based
on 36 Units $ 16,667
Term 20 Years
Interest Rate 8%
Year Principal Interest Total Payment Balance
$ 16,667.00
1 833.35 1,333.36 2,166.71 15,833.65
2 833.35 1,266.69 2,100.04 15,000.30
3 833.35 1,200.02 2,033.37 14,166.95
4 833.35 1,133.36 1,966.71 13,333.60
5 833.35 1,066.69 1,900.04 12,500.25
6 833.35 1,000.02 1,833.37 11,666.90
7 833.35 933.35 1,766.70 10,833.55
8 833.35 866.68 1,700.03 10,000.20
9 833.35 800.02 1,633.37 9,166.85
10 833.35 733.35 1,566.70 8,333.50
11 833.35 666.68 1,500.03 7,500.15
12 833.35 600.01 1,433.36 6,666.80
13 833.35 533.34 1,366.69 5,833.45
14 833.35 466.68 1,300.03 5,000.10
15 833.35 400.01 1,233.36 4,166.75
16 833.35 333.34 1,166.69 3,333.40
17 833.35 266.67 1,100.02 2,500.05
18 833.35 200.00 1,033.35 1,666.70
19 833.35 133.34 966.69 833.35
20 833.35 66.67 900.02 (0.00)
Total Payments $ 30,667.28
City of New Hope
Payment Schedule for Proposed Assessments
Sandpiper Cove
Assessment $ 625,000
Assessment Per Unit Based
on 36 Units $ 17,361
Term 20 Years
Interest Rate 8%
Year Principal Interest Total Payment Balance
$ 17,361.00
1 868.05 1,388.88 2,256.93 16,492.95
2 868.05 1,319.44 2,187.49 15,624.90
3 868.05 1,249.99 2,118.04 14,756.85
4 868.05 1,180.55 2,048.60 13,888.80
5 868.05 1,111.10 1,979.15 13,020.75
6 868.05 1,041.66 1,909.71 12,152.70
7 868.05 972.22 1,840.27 11,284.65
8 868.05 902.77 1,770.82 10,416.60
9 868.05 833.33 1,701.38 9,548.55
10 868.05 763.88 1,631.93 8,680.50
11 868.05 694.44 1,562.49 7,812.45
12 868.05 625.00 1,493.05 6,944.40
13 868.05 555.55 1,423.60 6,076.35
14 868.05 486.11 1,354.16 5,208.30
15 868.05 416.66 1,284.71 4,340.25
16 868.05 347.22 1,215.27 3,472.20
17 868.05 277.78 1,145.83 2,604.15
18 868.05 208.33 1,076.38 1,736.10
19 868.05 138.89 1,006.94 868.05
20 868.05 69.44 937.49 0.00
Total Payments $ 31,944.24
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We the undersigned, menibers of the Rockford Homeowners Association, request and
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Unit No .- '..
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STEVEN A. SONDRALL
MICHAEL R. LAFLEUR
CORRICK & SONDRALL, P.A.
ATTORNEYS AT LAW
Edinburgh Executive Office Plaza
8525 Edinbrook CrosSing
Suite #203
Brooklyn Park. Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 425-5867
LEGAL ASSISTANT
SHARON D. DERBY
MARTIN P. MALECHA
WILLIAM C. STRAIT*
*OUALlFIED ADA NEUTRAL
January 6, 1998
Kirk McDonald
Management Asst.
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE: Sandpiper Cove Housing Improvement AreajOrd. No. 98-02
Our File No: 99.49802
Dear Kirk:
Please find enc 1 osed proposed Ord i nance No. 98-02 ent it 1 ed An
Ord i nance Est ab 1 ish i ng a Hous i ng Improvement Area for the Sandpi pe r
Cover Townhome Development Pursuant to Minn. Stat. Chap. 428A.
This Ordinance is for consideration at the January 12, 1998 Council
meeting.
Please note this Ordinance was originally numbered 97-23. Since
the Ordinance was not adopted in 1997, it has been assigned a new
number to indicate its adoption in 1998.
Further, the adoption of this Ordinance does not commit the City to
go forward with the housing improvement project set out in the
Ordinance and in the December 23, 1997 report from Construction
Consulting & Inspections, Ltd. Before the City would be obligated
to fund the imp rovement pro j ect as proposed in the Consu It ant's
report, a number of things must happen as follows:
1. The Condominium Association must provide the City with a
financial plan prepared by a independent third party,
acceptable to the City and the Association, indicating
the Association will be able to finance the construction,
maintenance and operation of the proposed improvements
made to the common elements of the property. The plan
should also indicate the Association's long range plan to
conduct and finance other capital improvements that will
be necessary to the property. I mentioned this
requirement in my July 30, 1997 letter concerning this
project, however, I do not believe the Association has
yet to address this issue or indicate who they will use
to prepare this financial plan.
Kirk McDonald
January 6, 1998
Page 2
2. The Association will need to enter into a Development
Agreement with the City for the purpose of implementing
the const ruct i on of t he proposed improvement s as out 1 i ned
in the Consultant's report.
3. A final determination will need to be made regarding the
special assessments for costs to each unit within the
Association for the proposed improvements. Once this
cost is determined, the City will then need to hold a
second public hearing in connection with the special
assessment of these costs against each housing unit. As
part of this public hearing for imposition of special
assessment s, we wi 11 need to i nd i cat e the assessab 1 e
amount against each un it. We wi 11 not be ab 1 e to
increase the assessable amount after the public hearing,
however, we will be able to decrease the amount. As a
resu1 t, we wi 11 need to bui 1 din a cont i ngency for
improvement cost overruns to insure the project can be
fully funded by special assessments against units within
the Association. Otherwise, we will be left with an
uncompleted project or the homeowners in the Association
will need to privately raise additional funds to complete
the project if its costs exceed our estimate as set out
in the public hearing notices for imposition of the
special assessments.
4. The adoption of proposed Ordinance 98-02 and any
resolution imposing special assessments for cost of the
improvement project are also subject to a veto by 35% of
the homeowners within the Association within 45 days
after the adoption of either the Ordinance or the
resolution. As a result, proposed Ordinance No. 98-02
will not be effective until 45 days after its publication
on January 21st, assuming the Ordinance is adopted by the
City Council at its January 12,1998 meeting. In other
words, this Ordinance will not be effective until March
9, 1998. Likewise, a fee resolution is subject to a veto
by 35% or more of the homeowners within the improvement
area. Therefore, the City could not fund any
construction related costs until the veto time period has
expired after adoption of the fee resolution. Before we
can adopt the fee resolution, items 1, 2 and 3 above must
be completed.
Kirk McDonald
January 6, 1998
Page 3
5. Even if both veto time periods expire, homeowners within
the improvement area may file objections to the special
assessments against their housing units. However, to
affect appeal rights a property owner would need to file
a written objection to the Ordinance or the resolution on
or before the public hearing at which the Ordinance or
resolution is adopted. Therefore, if we receive no filed
objections to the Ordinance on or before January 12th, no
property owner wi 11 be able to object to the inclusion of
his or her unit within the improvement area. However,
since we have not yet noticed a public hearing to adopt
a special assessment fee resolution, all property owners
within the improvement area will still be able to object
to a fee levied against their units.
In summary, adoption of the proposed Ordinance enclosed simply
initiates the process to implement a housing improvement project
financed by the City and funded by special assessments against the
individual housing unit. The Homeowner's Association, as well as
the City, still have a significant amount of work to do prior to
t he act ua 1 commi tment of funds or t he sale of bonds for act ua 1
improvement costs. Please contact me if you have any questions or
comment s about the enc 1 osed Ord i nance or cont i nu i ng process and
procedures towards implementing a housing improvement project at
the Sandpiper Cove Development.
Very truly yours,
Steven A. Sondral1
s1t3
Enclosure
cc: Daniel J. Donahue, City Manager
Valerie Leone, City Clerk (w/enc)
/JlLi 0 () 0
4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
TOO: 612-531-5109
City Hall Fax: 612-531-5136
Police Fax: 612-531-5174
Public Works Fax: 612-533-7650
Fire .Gep'!. Fax: 612-531-5175
December 29, 1997
Mr. Dan Leaf
Rockford Homeowners Association
8951 42nd Avenue North
New Hope, MN 55427
Mr. Peter Rawski
Rockford Homeowners Association
8921 42nd Avenue North
New Hope, MN 55427
Subject:
Assessments for Sandpiper Cove Housing Improvement Project
Gentlemen:
This letter is in follow-up to our December 12 meeting. One of the issues discussed at that meeting was
the assessment payments. We indicated to you that for routine assessment projects, such as street
improvements, the amount assessed usually has equal principal payments and declining interest, so that
the total payment declines each year over the life of the assessment. This is the process utilized by
Hennepin County. The Finance Director has calculated the attached spreadsheets showing the routine
"declining assessment rate" schedule based on projects ranging in various amounts from $500,000.00 to
$625,000.00. For example, for a $500,000.00 project, the total payment in year one would be $1,805.57
per unit ($694.45 principal and $1,111.12 interest). The payment in year twenty would be $750.01 per
unit ($694.45 principal and $55.56 interest). The total paid out per unit over the life of the project would
be $25,555.76.
You indicated that these fluctuating payments could be a hardship on some of the homeowners and
inquired if the City would consider equal annual assessment installments. The Finance Director also
checked with Hennepin County on this issue. Hennepin County will not maintain the papelWork on the
assessments if they are equal amounts; the City would have to maintain separate records for this
project. However, the City Manager indicated that if this single issue will make or break the project, he
will recommend to the Council that the City maintain the records and assess an equal amount per year.
While the Finance Director did not develop a detailed spreadsheet for this scenario, he did develop the
attached schedule labeled "equal payments." If the assessments were paid equally, the annual amount
due would be $1,414.63 with a $500,000.00 improvement. Note that the total cost of the "equal
payments" proposal is $2,736.75 more per unit over the life of the project than the "equal principal"
method.
Please review/discuss each of these methods with your Association as soon as possible and let me
know what method you would prefer for the project. I would appreciate it if you could communicate your
thoughts on this to me by January 7 so this information is available for the January 12 public hearing.
Family Styled City ~~ For Family living
Mr. Dan Leaf and
Mr. Peter Rawski
Page 2
December 29, 1997
Also, the City is in receipt of the Overview Specification from John Russo and it is in the process of
being reviewed by the appropriate inspectors. I will contact you the week of January 5 with the City's
comments. Please contact me at 531-5119 if you have any comments or questions.
.Sincerely, ,
.~~-~~~"'~
Kirk McDonald
Management Assistant!
Community Development Coordinator
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Larry Watts, Director of Finance & Administration
Improvement Project No. 600
COUNCIL
m
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~ij; ""oq
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REQUEST FOR ACTION
Originating Department
Approved for Agenda
Agenda Section
Public
Hearing
Item No.
City Manager
f)2-8-97
Kirk McDonald I
By: Management Assistant By: 7 .2
PUBLIC HEARING/ORDINANCE NO. 97-21 AN ORDINANCE ESTABLISHING A HOUSING
IMPROVEMENT AREA FOR THE SANDPIPER COVE TOWNHOME DEVELOPMENT, PURSUANT TO
MINN. STAT. S428A (IMPROVEMENT PROJECT NO. 600)
This is a public hearing continued from previous meetings to consider the adoption of an ordinance
establishing a Housing Improvement Area for the Sandpiper Cove townhome Development
(Improvement Project no. 600). At the June 9 Council/EDA meeting, staff discussed the option of the
City establishing a Housing Improvement Area to provide financial assistance to upgrade the exterior of
these properties. Sandpiper Cove is a townhouse development located at 8101-8953 42nd Avenue that
contains 36 owner-occupied town homes. The complex is 20 years old and there are significant exterior
deterioration problems. The association has sought preliminary bids from contractors who estimated that
$350,000 is needed to make siding, deck, window, and other improvements. They approached the City
for assistance because, as a townhouse association consisting of individual owners, they have been
rejected by several banks for loans to make the needed improvements. At that meeting, the City
Attorney outlined new legislation and procedures to initiate a program where the City could assess the
benefiting properties similar to a special assessment project. The EDA was generally receptive to this
idea and directed staff to proceed with the preparation of an ordinance.
A public hearing was opened at the July 28 Council meeting to consider this ordinance and the public
hearing was tabled because the association had not yet had an engineering analysis completed to
determine the specific improvements that need to be made to the properties. A description of the
necessary improvements must be identified in the ordinance. The public hearing was tabled until August
25, October 13, November 10 and December 8 because the hiring of a consultant and the completion of
the engineering analysis is taking longer than anticipated by the association.
(cont'd. )
MOTION BY if ffe/Jt.../
TO' (dun;(;;L 17) /!lJ../c;j.
. I I
SECOND BY
(~(jffl.t>u
Review:
Administration:
Finance:
RFA-OOl
Request for Action
Page 2
12-8-97
The townhouse association is requesting and City staff are recommending that the public
hearing again be continued to the January 12, 1998, Council meeting. The townhouse association
recently conducted a meeting where approximately 70% of the home owners were present and there
was a unanimous vote to proceed with the project and to contract with an engineer to prepare detailed
cost estimates. It was anticipated that this analysis would be completed by the end of November, that
the Inspection's staff will have an opportunity to review it and that it would be ready for Council
consideration on December 8. The engineer recently met with the Inspections Department to
review the preliminary scope of work (attached), however, the detailed description of work is not
yet completed.
The first steps to establish a housing improvement area are as follows:
1. Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement
area or areas and specifically indicating the necessary improvements to be made within the area.
The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be
considered, there must be a petition by at least 25 percent of the owners within the proposed area
requesting the enabling ordinance. A petitioner with 28 out of 36 signatures (77%) was
submitted at the June 9 meeting.
2. Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the
hearing and within the ordinance, the Council would need to make findings that the necessary
improvements will not be made if the housing improvement area is not created and making the
improvements within the area is needed to maintain and preserve the area's housing units. Further,
the enabling ordinance will allow the City to impose a fee against the benefiting property owners to
pay for the cost of the improvements.
3. The property owners within the improvement area also have veto power over the ordinance. In other
words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take
effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by
the City Council. During that 45-day interim period, the property owners, after all receive notice of the
ordinance and its contents within five days of its adoption, can file an objection to the ordinance with
the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void.
4. If the ordinance is not vetoed, property owners can individually object to their inclusion in the
improvement area or the imposition of fees against their property. The objection procedure works
similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a
second public hearing before it can collect fees or specially assess properties for payment of the
improvement costs. Again, this works like the special assessment procedure found in Chap. 429.
Staff recommends that the hearing be continued until January 12, 1998.
COPY
CONSTRUCTION
CONSULTING &
INSPECTIONS, LTD.
August 18, 1997
Dan Leaf
Rockford Owners Association
8951 Rockford (42nd Avenue North)
New Hope, Mn 55427
Dear Dan:
The following is as we discussed 8113/97 when we met on site.
It will be impossible to do any work in 1997 unless you consider winter work 1997-98. I
do not recommend it, and would not likely be involved under that condition. The project
should be scheduled for May - August, 1998.
The rough schedule of the process will, in my opinion, be as follows:
. September - October: Full identification and description of the work, including overview
specifications. Review with city officials; preliminary estimate of costs.
. November - December: Prepare full specifications, bid the work; final estimate of costs.
· January - February: City final approval, with firm bid numbers.
· March - April: Prep contracts, prepare to start. Contracts in place by March 15.
· May 1 - Start work.
· August 15 - Full completion of work.
The preliminary identification of work to be done on the project per my review of the site
8/4/97 and review with you R/13/97 is as outlined below.
Duplex Buildings (10)
1. Replace all windows with vinyl replacement windows.
· There will be rotted sills and surrounds to deal with as well.
2. Replace all patio doors.
. There will be possible surround/structural repair around patio doors that is impossible to
see -- until work is done.
3. Replace all garage mandoors with windowless steel or vinyl doors; a decision as to frame
replacement needs to be made.
Pentagon Towers. Box 36184
Minneapolis, Minnesota 55435
(612) 944-7137
FAX (612) 944-7018
2
4. Replace all garage overhead doors with steel prefinished doors. This will also include
replacement of all rails and springs.
· All door openers that do not meet current code/law will have to be replaced.
5. Remove all existing rear decks and replace. This will include the privacy/fences at the
ground and upper levels.
6. Replace the following on all front entry steps/stoops:
· Top boards, rails, steps with rails.
· Save the frame.
· The whole step/stoop (frame and all) will have to be replaced at 8901-03 and possibly
other addresses u after closer scrutiny.
7. No replacement of front storm or main doors will be included.
8. Replace all roofs to the deck boards -- to code.
· 8843-45 roof was replaced five :l: years ago; decide after closer review.
· 8867-69 roof was replaced three to four years ago: decide after closer review.
o All vents and metal also to be replaced.
9. Remove all existing and install ne\-v 6" gutters and 3 x 4 downspouts on both front and
rear of all buildings.
10. Replace all exterior lights, four per unit -- two front, two rear.
11. Install vinyl siding system to generally include the following details.
o Remove existing siding; areas checked have tar impregnated fiberboard sheathing under.
Some repair of sheathing and framing is anticipated.
o Vinyl siding to be nominal .044 premium quality vinyl from Alsco, Reynolds, or
Norandex. Ail vinyi corners; remove existing wood.
o Aluminum cladding to be installed: around overhead doors (plus vinyl stop); on brick
molds around all windows and doors (remove all Ix wood trim boards); on side-lights
(entry) to faces of frames.
o Aluminum soffit fascia system to be installed all around, including fascia board up rake
(gable) and on entry porches.
o Vinyl shutters to be installed as determined by association to accent buildings (and
replace accents of removed trim boards).
o Aluminum custom address number plates.
Four Plex Buildings (4)
1. Replace all windows with vinyl replacement windows.
3
· There will be rotted sills and surrounds to deal with as well.
2. Replace all patio doors.
· There will be possible surround/structural repair around patio doors that is impossible to
see -- until work is done.
3. Replace all garage overhead doors with steel prefinished doors. This will also include
replacement of all rails and springs.
· All door openers that do not meet current code/law will have to be replaced.
4. Remove all rear decks and replace. This will include the possibility of having to install
posts to the ground for three of four decks each building. This is due to
rotting/deterioration of the existing cantilevered deck joists. Installation of posts will also
require installation of footings in (new) curb surround islands below -- with steel post
protectors. It is possible that a design can be created that will not include posts n more
investigation with a CC&I, Ltd. structural engineer is necessary.
5. Replace all front entry steps/decks.
6. No replacement of front storm or main doors will be included.
7. Replace all roofs to the deck boards -- to code.
o All vents and metal also to be replaced.
8. Remove all existing and install new 6" gutters and 3 x 4 downspouts on the front and
over the decks on the rear of all buildings.
9. Replace all exterior lights, three per unit n one front, two rear.
10. Install vinyi siding system to generally include all of the items outlined for the dupiex
buildings (item 11).
This project will likely require four separate contractors and consequently will require four
(or five) separate sets of specifications and contracts.
The coordination of the work will require the following sequencing considerations:
o Roofs before fascia work (driplflash must be under ice/water shield, however).
o Siding/soffits can be concurrent.
o Windows/doors before or at same time as siding.
o Garage doors anytime but before vinyl stop on surrounds.
4
· Exterior lights after siding.
· Decks/privacy walls off before siding; on after siding -- or on/off before with
coordination.
· Front entry steps/stoops/decks off before siding; on after siding -- or on/off before with
coordination.
The next step is for you to tell me to proceed. I will then move on (early September) with
further narrowing of the work definition, meet with the city, start estimates, and plan on
meeting with your membership if you wish.
Sincerely,
John G. Russo, Ph.D.
President - CC&I, Ltd.
\ I'C '1 " 7 T'~ U I I ' ;:::)
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ORDINANCE NO. 97-23
AN ORDiNANCE ESTABLISHINQ
A HOUSING I~PROVEMENT AREA
FOR THE SANOPIPER cove TOWNHOWE
DEVELOPMENT PURSUANT TO MINN. STAT. CHAP. 42SA
The City Council of the City of New Hope ordains:
Section 1. Section 1.S0 "Sandoioer Cove Hou.inQ Imorovement
Arel" of the New Hope City Code is hereby added to read as fOllOWS:
1 .80 .fulndc i cer COVEl HOU$; n9 Imcrovemlint Area. The C; t Y of New Hope
(hereafter City) hereby establishes Pur$uant to Minn. Stat.
Chap. 4ZSA a hous i ng ; mj:)rovement area over the prooerty
common 1 y known aa the Sandp.j pe r Cove Townhoma devQ 1 opment
which is legally described in Section 1.803 of this Code.
1 .801
RAcital-'.. The City hereby makes the following
recitals in support of its action to establish the
herein housing improvement area:
.-
1 .
The City is authorized under Minn. Stat.
~!428A.l1 through 428A.21 to est<:tblish by
ordinance housing improvement areas within
which housing improvements are made or
constructed and the costa of the improvements
are paid in whole or in pert from fees imoosed
within the area.
1 .602
Z. The City has determined II ntJed to establish
the Sandpiper Cove HOUSing Improvement Area as
defined herein, in order tn facilitate eertain
improvements to the property all in accordance
with the ~ous;n9 Improvement Act.
3. The. City has consulted with the Rockford
Owners Asaociation and with reSidents in the
Sandp; j:)er Cove Housi n9 Improvement Area
regarding the establishinent of said housing
improvement area and the hOUSing improvements
to be const ruet ed and fi nanced under 1: hi $
ordin<:tnce.
F'i nd i n~s. The Cit y hereby makes the fo 11 owi ng
findings in support of its action to establish the
herein housing improvement area:
"-
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--
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1 .803
1.804
---.
1 .
T~e Ci,ty Council finds that, in accordance
wlth M,nn. Stat. s426A.12, owners of at least
25 per c en t 0 f the h 0 us i n gun it s Vol it h i nth e
hous,ng ,mprovement area have filed a petition
with the City Clerk requesting a pUblic
hear i n9 regard i n9 est at:) 1 i shment of such
housing improvement area.
2. The City Council has on July 28, 1997 and by
adjournment thereafter conducted a public
hearing, duly noticed in accordance with Minn.
Stat. ~42SA"3, subd. 2, regarding adoption of
this ordinance at which all persons, including
owners of property within the housing
improvement ar~a were given an opportunity to
be heard.
3. The Council finds that, without establishment
of the housing improvement area, the Housing
Improvement S (as here i nafi: er def i ned) cou 1 d
not be made by the homeowners a$soci~tion for,
or the housing unit owners in, the Sandciper
Cove Townhome development.
d..
The Council further finds that deSignation at
said housing improvement area is needed to
maintain and preserve the housing units within
::ouch area.
HouS 1 n~ rmcrpvement Area Oef; neg. Th$ Sandp; per
Cove Housing Im~rovement Area is hereby defined as
that area of the City legally described as follows:
Lots 1 througn 59, inclusive, Sandpiper cove,
all of which is according to the plates)
thereof on file and of record in the office ot
the Registrar ot Titles, Hennepin County,
~inneaota. Said housing improvement area
consists of 36 housing units as of the
adoption of this section.
~eusinq Imorovements Defined. For the purposes of
!!1.aO through 1.S of this Code, the term ~~ousin9
Improvement::o~ shall mean thG following improvements
to houaing units, garages, and common areas within
Sandpiper Cove HOusing Improvement Area:
Replacement of all roofs, Gxterior siding, decks
and exterior doors and windows.
2
AlG-14-37 7:-iU
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Housin9 Improvements shall also be deemed to
include:
1 . All co S t S 0 far chit e c t u r a 1 an den gin e e ,. i n 9
services in connection with the act;yit;e~
describ~d in this Section.
Z. All administration, legal and consultant costs
in connection with the hou$ing improvement
area.
3. Cost Ii of issuance of bonds, if I:l.ny, to finance
housing improvements under the Housing
Improvement Act. SUbject to tha terms of
Section' .805 of thia Cod~.
Housinq Improvement Fee. The City may, by
resolution adopted in accordance with the p~tition,
haaring and noticQ proc~dur~$ required under Minn.
Sts~. Chap. 4ZSA known as the HOUSing Improvement
Act, impose a fee on the houaing unita within the
Sandpiper Cove Housing Improvement Area, at a rats,
term or amount sufficient to produce revenUQS
required to provide the Housing Improvements
(hereina.fter reterred to as the "Housing
Improvement Fee"), subject to the terms and
conditions set forth in this Section.
1. Any Housing Improvement Fee shall be imposed
on the basis of the total cost of the Housing
Improvements to be financed by the Housing
Improvement Fee, divided by the number of
housing units in the housing improvement area
as of the date of any fee resolution.
2. Any HOUSing Improvement Fee Shall be imposed
and payae 1 e for a per; od no great 8r than 20
years aftar the first installment is due and
payable.
Any Housing Improvement Fe$ shall be
prepayable in full or in part by housing unit
owners within 30 days a.fter the effective date
of the resolution Slatting thQ Housing
Improvement Fee, provided that if only a
portion is prepaid, the prepayment amount must
be at least 25~ of the total fee for that
unit. After such 30-oay period the HOUSing
Improvement Fee (or unpai d port; on thereof)
shall not be prepayable.
3.
3
.. ! ~t" _ 1.4 _^ -, ~~..n 1 . 1 : -::9
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1 . S01
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4..
The resolution imposing any Housing
Improvement Fae shall provide that any fee (or
portion thereof) not prepafd by the housing
~nit owner shall ,be dee~ed to include simple
1 nt ersst on unpa, d houS'''9 ; mprovement cost s
at a rate of e~ per annum.
5. Any Housing Improvement Fe. shall be collected
at t he same time and in t he same manner as
provided tor payment and 0011&ot;on of ad
valorem taxes, in accordance with Minn. Stat.
~42SA.05. As set forth in Minn. Stat.
s4ZSA.14, the Housing Improvement Fee is -not
included in the calculation of levies or
limits on levies imposed under any law or
chart er.
6. Any Housing Improvement Fee shall not exceed
the amount specified in the notice of public
hear; ng regard; ng t he approval of such fee;
provided, however, that the Housing
Improv~ment Fee may be reduced after approval
of the reSOlution setting the Housing
Improvement Fee, in the manner specified in
such resolution.
r ssuance of Bondi. At any time aft er a cant ract
with Roekford Owners Association, Inc. for
const ruct i on of all 'or part of the hous, ng
improvem~nts has been entered into or the work has
been ordered, and the 30-day period for prepayment
of the Housing Improvement Fee has expired as
described in gl.805 hereof. the Council may issue
bonds in the prineipal amount nece$sary to finance
the cost of the housing improvements that have not
been prepaid toget~er with costs of issuanee of the
bonds. Such bonds shall be issued pursuant to and
in accordance wit h Mi nn. at at. !42SA. , 6 of the
Housing Improvement Act.
Annua 1 ~.oort S.
1 .
On August '5, 1997 and Q&ch August 15
thereafter until 4111 housing improvement fees
dGri yea in the hous i ng. 1 mprovement area are
fully paid, the Rockford Owners AssociatiQn,
I nc. (and any successor ; n i nt erest) sha 11
submit to the City ClerK a copy of the
association's audited financial statement..
4
'U.G 'j97 ""U ''-'''''0
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, .1308
Rock ford Owne rs Assoc; at ion, ! ne. (and "-ny
successor in; nt erest) sl'la 11 a 1 so submi t to
the City any other reports or information at
the times and as reqUired by any contr~ct
ent~red into between that entity and the City.
Notice of Riqht to F'ile Obiection!i. Within five
day. attar the adoption of sg1.aO through 1.1309 of
this Code, the City ClerK is authorized and
directed to mail to the owner of a&ch hOUSing unit
in tha Sandpiper Cove Housing Improvement Area: a
summary of these Code Sections; notice that Owners
sub j ect tot he proposed ~ous; ng Improvement F'ee
have a right to voto this ordinance if owners of at
least 35 percent of the hOUSing units within the
Sandp; per Cove Housi ng Improvement Araa fi 1 e an
Objection with tha City Clerk before the e1fective
date of this ordinance; and notice that a copy of
this ordinance is on file with the City Clerk tor
public inspAction.
:2 _
-
, . ace
Amendment. Th; s ordi nance may be amended by 1: he
Council upon compliance with the publio hearing and
notioe re~uirements set forth in Minn. Stat.
~42aA. 13, subd. 2 of the Housing Improvement Act.
'--'
Section 2. Effective Date. This Ordinance shall be affeotive
uoon its passage and publication.
Dated the
day 01'
, 1997.
W. ~eter Enek, Mayor
Attest:
Val~r;e Leone, City Clerk
PU011shed in the New Hope-Goldan Valley Sun-Post the
J i 991. )
day of
.",-"
5
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July 30, 1997
K n'x MeDona 10
C"it.y of New Hooe
4401 Xylo~ Av~nue North
New Hope. MN 55428
R5: Sandpiper Cove Housing Improvement
ArGa Ordinance No. 97-23
Our file: 99.49723
Dear Kirk:
Please find enclosed f::;r your rQv,ew a preliminary drart :Jf
OrdinancQ No. S7-2~ establishing the Sandpiper Cove Housin~
Im~rovement Area. This Ordinance is for consideration at the August
25, 1997 Council meeting.
6asical1y, the ordinance oermits t.he City to assist the Sando;per
Cove Homeowners Association with loan. fer repair and improvement
of their orop~rtie$. As you know, there are se individual units
within the development. Ali ar~ in neeo of new siding, reofs. decks
ana exterior doors and windows. The loans are estimated in the
SSOo,ooo.ao range.
The ordinance will allow the City to se11 G.O. bonds to finanoe the
imorvvement. costs. However, bonds cannot. l:le sold unti1 work. is
orderQd or cQntract# are enterea by the ASSOCiation for approved
;mQrovements. The deo~ service on the bonds will be oaid b~ ~pec1al
assessments against the unit~ within the ;m~rovement are~. ! have
providad ror a 20 year term wlth simple interest ac $~ per annum on
a declining balance basis. It appears we may not have a bond sale
on tnis project until Soring 1~9a based on the conver~ation we had
with the en~;neer doing the struotural analy~is for the
Association.
Also, I am worxing on a DevQ10pment Contract the Associ~tion w;11
MQsd ~o enter into with the City, and we w", also need from the
Associa~ion an engineering ana1ysis indicatin9 the proposed
imcrovements recomm~nded in the improvement area along with a
~i'~;G-: ~ - j~
. ;-::..J
1 1 , ::
. . . ~.'~
Kirk ~cOona.ld
Juiy SO, ;997
Page 2.
financw ;:l;an showing how t.he maint.anance and OPerat.10n of the
deve1opment's common areas wi11 be oaid and a long range pian
lndicating how other capital improvemQnt. will be financed in the
improvement area.
Please review the ordinance and cont.act me if you have any other
questions or comm~nts.
Very truly yours.
Steven A. Sandra"
Z1w
enclosure
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CORRICK &: So NDAA.L.I. , P.A..
A:;~.()R:'iF:YS AT uw
F'.Jiinhllrgh E.x.ecutl'ie Office ?[aza
35 Jo E:di...,broolc CrO~31.;1g
3Ll.lte ~20j
01'001<:11'11 Park. Minnesota 55443
l'!U!"I-!OHl! (012) ~~71
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July 23, '9~7
Ki/"'k MeDona'd
City of N~w HOoe
4401 XylOn Avenue North
New HOPQ7 MN 55428
~:: Sandpiper Cove Housing
!mprovemen~ Area
Our rile: 99.1115S
Dear Kirk:
Thi~ ~etter will confirm the recent telp.phone eonversation we had
with Dan Leaf Pres; ciAnt of the Sandpi POI'" Cove Townhome A~soc i at; on.
They are asking fol'" a continUC:l.flCe on the pUblic hearing schedu1~rl
fo/'" the July 28th Council Meeting, ApoarAntly they need mo/"'e time
to conduct the engin~A/"'ing analys;is of their iJnits to det~r'mine :iie
sp&ciric improvoments that need tu be made to thelr prooerties.
The pUblic hearing ;s r~Q(Jil"'ed by Minn'.' Stat. ~42SA"3, After' t.he
hearing the Council will consider the adoption of an ordinance :0
'~3ta!:) 1 , sh a hoys i rtg i mprovemene area for Sande; cer Cove. ~as ; ca 1: Y .
th~ ordinance wil I allow the City to loan the Association ~unds For
reeairs to the exterior area of the unita in the develocmen~. The
loans wi11 ba made in the form Qf special assessments again~~ the
pruperties.
The engineering analysis is ne<.;ljssary since state law reouirAS a
descript..ion of the necessary imcrovements must beil set out ;" the
ordinance. ihe more s~ecifie we can be wit"" this description will
A~~ist us in compliance with the statu~e and allow us to determine
the amcw"It of runds necessary to make the requi r9d ; mpF"ovementa.
OOviously, thts is information t.hA Council wi" need before it Can
oass on the housing improy~ment area ordinance.
Ther~fore, it was decided to reouest a postponement of the pub1ic
hear; ng unt i 1 August 117 ".397. We wi 11 not need to repu01 ish our
hearing notice but! suggest we dO another mal1ing to the prooer~y
owners ill tl'1e deve 1 opment about the h~a" 'I no postponem~nt ;.H"It. i 1
... ........ ..-
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K.1rK \AcCcr'\a:d
July 23, ~997
P~ge 2.
AlJ~ust ;: th. C:on1:ac:t me if you hav3 any otl-ler questions or ccmmen':.s
~bou~ this matter.
Very truly yours,
~
Steven A.. Sandra"
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4401 Xylon Avenue North
New Hope. tvlinnesota 55428.4898
City,waJ/: 612.531.5100
Police: 612.531.5170
Public Works: 612.533.4823
TOO: 612.531.5109
City Hall Fax: 512.53'-5'35
Police Fax: 512.531.5174
Public Works Fax: 512.533.7650
Fire Oep'!. ,cax: 512-531.5175
November 13, 1997
Mr. Peter Rawski .
Rockford Homeowners Association
8921 42nd Avenue North
New Hope, MN 55427
Subject:
Dear Peter:
Please be advised that on November 10, 1997, per your request, the New Hope City Council continued the
public hearing regarding an ordinance establishing a Housing Improvement Area for the Sandpiper Cove
Townhome Development until the December 8 Council meeting. As soon as the analysis is completed,
please submit a copy to the City so that it can be forwarded to the City Attorney and Inspection's
Department for review. If possible, could you please submit this information to the City the week of
November 24 so that there is adequate time to prepare for the December 8 meeting.
If you have any questions prior to that time, please contact me at 531-5119.
Ordinance Establishing a Housing Improvement Area for Sandpiper Cove
Sincerely,
~. . r \
~~~~~~~(j
Kirk McDonald
Management Assistant!
Community Development Coordinator
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Doug Sandstad, Building Official
Jean Coone, General Inspector
Stephanie Olson, Community Development Specialist
Valerie Leone, City Clerk (Improvement Project No. 600)
A~j~
Family Styled City ..r.~\l:TJ', For Family Living
, t ~.. \ ~. f i '"
4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
. TOO: 612-531-5109
City Hall Fax: 612-531-5136
Po/ice Fax: 612-531-5174
Public Works Fax: 612-533-7650
Fire oep't. Fax: 612-531-5175
December 10, 1997
Mr. Peter Rawski
Rockford Homeowners Association
8921 42nd Avenue North
New Hope, MN 55427
Subject:
Dear Peter:
Please be advised that on December 8, 1997, per your request, the New Hope City Council continued the
public hearing regarding an ordinance establishing a Housing Improvement Area for the Sandpiper Cove
Townhome Development until the January 12, 1998, Council meeting. As soon as the analysis is
completed, please submit a copy to the City so that it can be forwarded to the City Attorney and
Inspection's Department for review. If possible, could you please submit this information to the City the
week of December 29 so that there is adequate time to prepare for the January 12 meeting.
If you have any questions prior to that time, please contact me at 531-5119.
Ordinance Establishing a Housing Improvement Area' for Sandpiper Cove
Sincerely,
~JvrnC-l},,,JiJ/ ~
Kirk McDonald It
Management Assistant!
Community Development Coordinator
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Doug Sandstad, Building Official
Jean Coone, General Inspector
Valerie Leone, City Clerk (Improvement Project No. 600)
Family Styled City ~nv~ For Family Living
d~ 'i' '~I 'i
COUNCIL
m
~~41
~U; ",oq
-
REQUEST FOR ACTION
Originating Department
Approved for Agenda
Agenda Section
Public
Hearing
Item No.
City Manager
D 11-10-97
Kirk McDonald
By: Management Assistant By: 7 .1
PUBLIC HEARING/ORDINANCE NO. cj-23: AN ORDINANCE ESTABLISHING A HOUSING
IMPROVEMENT AREA FOR THE SANDPIPER COVE TOWNHOME DEVELOPMENT, PURSUANT TO
MINN. STAT. S428A (IMPROVEMENT PROJECT NO. 600)
This is a public hearing continued from previous meetings to consider the adoption of an ordinance
establishing a Housing Improvement Area for the Sandpiper Cove town home Development
(Improvement Project no. 600). At the June 9 Council/EDA meeting, staff discussed the option of the
City establishing a Housing Improvement Area to provide financial assistance to upgrade the exterior of
these properties. Sandpiper Cove is a townhouse development located at 8101-8953 42nd Avenue that
contains 36 owner-occupied town homes. The complex is 20 years old and there are significant exterior
deterioration problems. The association has sought preliminary bids from contractors who estimated that
$350,000 is needed to make siding, deck, window, and other improvements. They approached the City
for assistance because, as a townhouse association consisting of individual owners, they have been
rejected by several banks for loans to make the needed improvements. At that meeting, the City
Attorney outlined new legislation and procedures to initiate a program where the City could assess the
benefiting properties similar to a special assessment project. The EDA was generally receptive to this
idea and directed staff to proceed with the preparation of an ordinance.
A public hearing was opened at the July 28 Council meeting to consider this ordinance and the public
hearing was tabled because the association had not yet had an engineering analysis completed to
determine the specific improvements that need to be made to the properties. A description of the
necessary improvements must be identified in the ordinance. The public hearing was tabled until August
25, October 13 and November 10 because the hiring of a consultant and the completion of the
engineering analysis is taking longer than anticipated by the association.
(cont'd.)
MOTION BY
TO: @j'-:Vi ;h/1LiL
( flL-a~
" ,I /"-hi
I Vl:J L U
SECOND BY
I:) Aj/q 7
I .
I{./., /i 7 .
QA..f?A J II ~
Review:
Administration:
Finance:
RFA-OOl
Request for Action
Page 2
11-1 0-97
The townhouse association is requesting and City staff are recommending that the public
hearing again be continued to the December 8, 1997, Council meeting. The townhouse association
recently conducted a meeting where approximately 70% of the home owners were present and there
was a unanimous vote to proceed with the project and to contract with an engineer to prepare detailed
cost estimates. It is anticipated that this analysis will be completed by the end of November, that the
Inspection's staff will have an opportunity to review it and that it will be ready for Council consideration
on December 8.
The first steps to establish a housing improvement area are as follows:
1. Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement
area or areas and specifically indicating the necessary improvements to be made within the area.
The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be
considered, there must be a petition by at least 25 percent of the owners within the proposed area
requesting the enabling ordinance. A petitioner with 28 out of 36 signatures (77%) was
submitted at the June 9 meeting.
2. Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the
hearing and within the ordinance, the Council would need to make findings that the necessary
improvements will not be made if the housing improvement area is not created and making the
improvements within the area is needed to maintain and preserve the area's housing units. Further,
the enabling ordinance will allow the City to impose a fee against the benefiting property owners to
pay for the cost of the improvements.
3. The property owners within the improvement area also have veto power over the ordinance. In other
words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take
effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by
the City Council. During that 45-day interim period, the property owners, after all receive notice of the
ordinance and its contents within five days of its adoption, can file an objection to the ordinance with
the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void.
4. If the ordinance is not vetoed, property owners can individually object to their inclusion in the
improvement area or the imposition of fees against their property. The objection procedure works
similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a
second public hearing before it can collect fees or specially assess properties for payment of the
improvement costs. Again, this works like the special assessment procedure found in Chap. 429.
Staff recommends that the hearing be continued until December 8.
-
m\1Y o~
~ ~
~~ HOq
COUNCIL
REQUEST FOR ACTION
Originating Department
Approved for Agenda
Agenda Section
Public
HearinQ
Item No.
City Manager
f) 10-13-97
Kirk McDonald
By: Management Assistant By:
7.3
PUBLIC HEARING/ORDINANCE NO. 9i23: AN ORDINANCE ESTABLISHING A HOUSING
IMPROVEMENT AREA FOR THE SANDPIPER COVE TOWNHOME DEVELOPMENT, PURSUANT TO
MINN. STAT. S428A (IMPROVEMENT PROJECT NO. 600)
This is the public hearing to consider the adoption of an ordinance establishing a Housing Improvement
Area for the Sandpiper Cove Townhome Development (Improvement Project No. 600). This matter was
tabled at the July 28 Council meeting. Before the ordinance can be completed, an engineering analysis
of the complex must be completed to determine the specific improvements that need to be made to the
properties because a description of the necessary improvements must be identified in the ordinance.
The City has met with representatives of the townhome development and they have indicated that they
are working with an engineer on plans and specifications, but that they will not be completed until the
end of October. When the listing of proposed improvements is received, staff wants it to be reviewed by
the inspection's staff. Therefore, at the request of the townhome development, staff is recommending
that the public hearing be continued until the November 10 Council meeting.
At the June 9 Council/EDA meeting, staff discussed the option of the City establishing a Housing
Improvement Area to provide financial assistance to upgrade the exterior of these properties. Sandpiper
Cove is a townhouse development located at 8101-8953 42nd Avenue that contains 36 owner-occupied
town homes. The complex is 20 years old and there are significant exterior deterioration problems. The
association has sought preliminary bids from contractors who estimated that $350,000 is needed to
make siding, deck, window, and other improvements. They have approached the City for assistance
because, as a townhouse association consisting of individual owners, they have been rejected by
several banks for loans to make the needed improvements.
At that meeting, the City Attorney outlined new legislation and procedures to initiate a program that
would allow for City-funded loans to property owners unable to obtain financing through private means.
Instead of securing the loans as a typical mortgage transaction, the City could assess the benefiting
properties similar to a special assessment project. The EDA was generally receptive to this idea and
directed staff to proceed with the preparation of an ordinance.
TO:
MOTION BY
(!;;11!i{/ 10
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r..j/.-(J L7I .
SECOND BY
(t/.. ~l /i /J 0' '(
L.A.../J...L.X 04/ .....
\'
./
II/;() I'l7
I /
Review:
Administration:
Finance:
RFA-OOl
Request for Action
Page 2
10-13-97
The first steps to establish a housing improvement area are as follows:
1. Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement
area or areas and specifically indicating the necessary improvements to be made within the area.
The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be
considered, there must be a petition by at least 25 percent of the owners within the proposed area
requesting the enabling ordinance. A petitioner with 28 out of 36 signatures (77%) was
submitted at the June 9 meeting.
2. Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the
hearing and within the ordinance, the Council would need to make findings that the necessary
improvements will not be made if the housing improvement area is not created and making the
improvements within the area is needed to maintain and preserve the area's housing units. Further,
the enabling ordinance will allow the City to impose a fee against the benefiting property owners to
pay for the cost of the improvements.
Staff recommends that the hearing be continued until November 10.
4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
TOO: 612-531-5109
City Hall Fax: 612-531-5136
Police Fax: 612-531-5174
Public Works Fax: 612-533-7650
Fire Dep't, Fax: 612-531-5175
October 14, 1997
Mr. Peter Rawski
Rockford Homeowners Association
8921 42nd Avenue North
New Hope, MN 55427
Subject: Ordinance Establishing a Housing Improvement Area for Sandpiper Cove
Dear Peter:
Please be advised that on October 13, 1997, per your request, the New Hope City Council continued the
public hearing regarding an ordinance establishing a Housing Improvement Area for the Sandpiper Cove
Townhome Development until the November 10 Council meeting. Per our discussion, you indicated- that
the engineering analysis may be completed by the end of October. As soon as the analysis is completed,
please submit a copy to the City so that it can be forwarded to the City Attorney and Inspection's
Department for review. If possible, could you please submit this information to the City the week of October
27 so that there is adequate time to prepare for the November 10 meeting. If the analysis is not completed
by that time, the Council can continue the public hearing again.
I will try to respond to your questions regarding the estimated costs for legal/bond issuance and other
administrative fees next week. We have compiled some estimates and need to discuss this issue with the
City Manager. We are in the process of checking with the City of Hopkins on whether or not they
initiated/coordinated some low interest loans for low/moderate income property owners and what the
source of funds was. We are also checking into several other programs and potential sources of funding,
including the MHFA and Hennepin County.
After you have your next association meeting, I think it might be helpful if we met again to discuss the
above information, the process, the timetable, etc. to be sure we are all proceeding under the same
assumptions.
If you have any questions prior to that time, please contact me at 531-5119.
-~\\~~
Kirk McDonald
Management Assistant!
Community Development Coordinator
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Doug Sandstad, Building Official
Jean Coone, General Inspector
Stephanie Olson, Community Development Specialist
Valerie Leone, City Clerk (Improvement .pr~l\~O) ., .
Family Styled City /J--'II/\l: tii}i\l-, For Family LIving
ftr'i 'if
Mark D. Snyder
8807 42nd Avenue N
New Hope, MN 55427
(612) 971-0701
Mr. Kirk McDonald
City of New Hope
4401 Xylon Ave. N.
New Hope, MN 55428
September 27th, 1997
Dear Kirk:
I am writing you in regards to the discussion you had with Steven Viseth(the buyer of my Townhouse at
address above) concerning the renovations to be done to the Sandpiper Cove Townhouses. After talking
with you, Steven carne over to inform me the deal to buy my townhouse was dead due to the information he
was given by you. You informed Steven of information that has not even been brought to a vote pertall1jng
to how each property owner would have to foot approximently $12,000 - $13,000 to make these renovations.
I know each owner is responsible for their portion, but telling a prospective owner they would have to foot
their portion via a loan to pay the city back is ludicrous at best. I know this is probably one of the options,
but if the Association and the City think this is the only way to get it done they are not doing their jobs. I
don't think the imposed cost of the renovations($12,000 - $13,000) would directly minor the increased
property values for each unit and that would be in violation of all property owners writes.
I am now left in a situation of not having a buyer and starting this process all over again. I think having
people at the City of New Hope telling perspective owners this is the way it is going to be fmanced is due a
written apology by the City to both buyer and seller. You telling a perspective owner information that has
not even been brought to the November 10th City Council vote, and indicating how the Association will
portion the costs is extremely unprofessional. It is a fact that once this issue passes through the City, the
Association takes over and makes the important decisions of how each individual owner is to be billed.
Take this letter for what it is, but I intend to get to the bottom of this and get Steven Viseth to be owner of
my property.
Sincerely,
Mark D. Snyder
cc: Peter Rawski - Rockford Owners Association
8921 42nd Ave N.
New Hope, MN 55427
(612) 535-1270
Mark D. Snyder
8807 42nd Ave N
New Hope, MN 55427
(612) 971-0701
Steven Viseth
4220 Winnetka Ave. N.
New Hope, MN 55428
(612)533-1430<<612)537-9500
STEVEN A. SONDRALL
MICHAEL R. LAFLEUR
MARTIN P. MALECHA
WILLIAM C. STRAIT*
CORRICK & SONDRALL, P.A.
ATTORNEYS AT LAW
Edinburgh Executive Office Plaza
8525 Edinbrook Crossing
Suite #203
Brooklyn Park, Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 425-5867
LEGAL ASSISTANT
SHARON D. DERBY
*APPAOVED ADA NEUTRAL
...July 3,
1997
Kirk McDonald
City of New Hope
4401 Xylon Avenue North
New Hope1 MN 55428
RE: Sandpiper Cove Improvement Project
Our File: 99.11155
Dear Kirk:
The following items must be accompl ished in order for the City
Council to adopt an enabling ordinance establishing a Minn. Stat.
Chap. 428A hous i ng improvement area for Sandpi per Cove at, the
Council's July 28, 1997 meeting:
1. a public hearing notice must be published in the July 16th
edition of the New Hope-Golden Valley Post. The hearing
notice must include a map of the improvement area.
Therefore we will need to define the improvement area and
provide a map for publication in the paper. Except for the
map, I will be responsible for publication of this notice.
I will need you to prepare the map.
2. we will also need to mail notice of the hearing to all
affected property owners within the improvement area. The
mailed notice must go out by July 16th as well. I will
want the City Clerk to assume responsibility for this task.
We will need to develop a list of the affected property
owners. We can use the county auditor's records to
determine the names and addresses of the owners entitled to
mailed notice.
3. we will need to meet with the Sandpiper Cove prope
owners and develop the final list of the proposed
improvements. This should be done fairly quickly. Also1 we
will need to have an agreement with them on the financial
terms for payment of the improvements. The statute
permitting this program allows some flexibility in this
Kirk Mcdonald
July 31 1997
Page 2.
area. This may require a determination of the required
improvements and costs for each unit. I would then propose
we specially assess each unit for the actual cost.
Property owners would only pay an amount equal to the
actual expenditures for his or her particular unit.
4. We also need to determine if any improvements are to be
made to the common areas of the development. If so, a
separate financing scheme will need to be devised to
determine the benefit to each unit from improvement to the
common areas. I would recommend dividing the total cost
of the common area improvements by the total number of
units and assess each unit its proportionate share for the
sake of simplicity.
I will try and have a draft enabling ordinance as soon as possible
for your review. Contact me if you have any other questions or
comments.
Very truly yours,
Steven A. Sondral'
zlf
STEVEN A. SONDRALL
MICHAEL R. LAFLEUR
MARTIN P. MALECHA
WILLIAM C. STRAIT
CORRICK & SONDRALL, P.A.
ATTORNEYS AT LAW
Edinburgh Executive Office Plaza
8525 Edinbrook Crossing
Suite #203
Brooklyn Park, Minnesota 55443
TELEPHONE (612) 425.5671
FAX (612) 425-5867
LEGAL AS8lST.&HT
SHARON D. DERBY
June 2, 1997
Kirk McDonald
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE: Sandpiper Cove Loan Program
Our File: 99.11155
Dear Kirk:
This letter will confirm our May 29, 1997 meet,lng with the
representatives from the Sandpiper Cove Townhome Assoc. regarding
the establishment of a housing improvement area for their property
pursuant to Minn. Stat. ss428A.11 through 428A.21.
This is a new program established by the State last year. It will
allow for City funded loans to property owners unable to obtain
Tlnancing through private means. However, instead of securing the
loans as a typical mortgage transaction the City will be allowed to
assess the benefitting properties much like a special assessment
project.
However, it will require the affected property owners to petition
the City for an ordinance establishing the improvement district and
the work \.'J ill need to be performed as a pub 1 i c improvement in
compl iance with the Uniform tvlunicipal Contracting law. tvly March
27th letter goes through some of the details on how this program
will work.
It is my understanding the Sandpiper Cove Homeowners Assoc. will
submit a petition as soon as possible. \Ale can then start on
drafting the enabling ordinance for consideration by the Council.
This may take some time since this is a new program with little or
no past history from other cities on how the program will. It is my
understanding staff is contacting Brooklyn Park in that they may be
working with this program at this time. We should be able to
utilize their framework for our program and ordinance.
Kirk McDonald
June 2, 1997
Page 2.
Contact me if you have any further questions or comments about this
matter.
Very truly yours,
Steven A. Sondrall
z1m
4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
TOO: 612-531-5109
City Hall Fax: 612-531-5136
Police Fax: 612-531-5174
Public Works Fax: 612-533-7650
Fire Oep't. Fax: 612-531-5175
April 2, 1997
Mr. Dan Leaf, President
Packford Homeowners Association
8951 42nd Avenue North
New Hope, MN 55427
Subject: City Attorney's Opinion on Loan Request for Improvements at Sandpiper Cove
Dear Dan:
Enclosed please find the letter I received from the New Hope City Attorney regarding a loan or
other funding options for needed improvements at Sandpiper Cove. Please review this
information with your association members. If you want to proceed, please contact me so we
can schedule a meeting to discuss the process in more detail. The City is still interested in
assisting the complex with repairs if we can reach an agreement on the terms and process.
Please review this information and contact me at 531-5119 if you have any questions.
Sincerely,
~ (~\ ( C"" C \
~~C'\~
Kirk McDonald
Management Assistant!
Community Development Coordinator
Enclosure: 3/27 City Attorney Correspondence
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Jean Coone, General Inspector
Doug Sandstad, Building Official
Stephanie Olson, Community Development Specialist
Valerie Leone, City Clerk
Family Styled City. For Family living
-
f~
~ri]1q
~~ \-\oq
COUNCIL
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Public
City Manager HearinQ
f}8-25-97 Item No.
Kirk McDonald
By: Management Assistant By: 7 . 1
PUBLIC HEARING: AN ORDINANCE ESTkLlSHING A HOUSING IMPROVEMENT AREA FOR THE
SANDPIPER COVE TOWNHOME DEVELOPMENT, PURSUANT TO MINN. STAT. S428A
(IMPROVEMENT PROJECT NO. 600)
This is the public hearing to consider the adoption of an ordinance establishing a Housing Improvement
Area for the Sandpiper Cove Townhome Development (Improvement Project No. 600). This matter was
tabled at the July 28 Council meeting. Before the ordinance can be completed, an engineering analysis
of the complex must be completed to determine the specific improvements that need to be made to the
properties because a description of the necessary improvements must be identified in the ordinance.
The City has not received the engineering analysis and when it is received, staff wants it to be reviewed
by the inspection's staff. Sandpiper Cove has informed the City that it will take until the first part of
October to have the analysis completed, therefore, staff is recommending that the public hearing be
continued until the October 13 Council meeting.
At the June 9 Council/EDA meeting, staff discussed the option of the City establishing a Housing
Improvement Area to provide financial assistance to upgrade the exterior of these properties. Sandpiper
Cove is a townhouse development located at 8101-8953 42nd Avenue that contains 36 owner-occupied
townhomes. The complex is 20 years old and there are significant exterior deterioration problems. The
association has sought preliminary bids from contractors who estimated that $350,000 is needed to
make siding, deck, window, and other improvements. They have approached the City for assistance
because, as a townhouse association consisting of individual owners, they have been rejected by
several banks for loans to make the needed improvements.
At that meeting, the City Attorney outlined new legislation and procedures to initiate a program that
would allow for City-funded loans to property owners unable to obtain financing through private means.
Instead of securing the loans as a typical mortgage transaction, the City could assess the benefiting
properties similar to a special assessment project. The Council was generally receptive to this idea and
directed staff to proceed with the preparation of an ordinance.
(r.nnt'rl \
TO:
MOTION BY
(0 t/ /~I
tTY~, Ii T7J
'1.kLr /I/...ci-
Ii
v ..
If) 1/ ~ !e;' 7
I I
SECOND BY
(t! . .., "
(/ ;7J I 1jI':7{
Ai -t:. -< .1:. / ./
Review:
Administration:
Finance:
RFA-OOl
Request for Action
Page 2
8-25-97
The first steps to establish a housing improvement area are as follows:
1. Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement
area or areas and specifically indicating the necessary improvements to be made within the area.
The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be
considered, there must be a petition by at least 25 percent of the owners within the proposed area
requesting the enabling ordinance. A petitioner with 28 out of 36 signatures (77%) was
submitted at the June 9 meeting.
2. Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the
hearing and within the ordinance, the Council would need to make findings that the necessary
improvements will not be made if the housing improvement area is not created and making the
improvements within the area is needed to maintain and preserve the area's housing units. Further,
the enabling ordinance will allow the City to impose a fee against the benefiting property owners to
pay for the cost of the improvements. Notices have been sent notifying all of the property
owners about this hearing.
Staff recommends that the hearing be continued until September 22.
AUG-14-97 THU 11:58
P.02/08
July 30, 1997
Kirk McDonalo
Cit.y of New HopE.
4401 Xylon Avenue No~th
New Hope, MN 55428
RE: Sandpiper Cove Housing Improvement
Area Ord1nance No. 97~23
Our file: 99.49723
Dear Kirk:
Please find enclosed fer your r~view a preliminary draft of
Ordinance No. 97-23 establishing the Sandpiper Cove Housing
Improvement Area. nlis ordinance is for consideration at the. August
25, 1997 Council meeting.
BaSically, the ordinance permits the City to .assist the Sandpiper
Cove Homeowners Association wit.h 'loans for repair a.nd improvement
of their properties. As you know1 there are SO individual units
within the development. All are in need of new siding. roof~~ decks
and exterior doors and windows. The loans are estimated in the
$500.000.QO rangs.
The ordinance will allow the City to sell G.O. bonds to finance the
improvement costs. However, bonds cannot be soid unti 1 work is
ord€red or contraots are entered by the Association for approved
improvements. The deb~ service on the bonds wi11 ~ paid by specia1
assessments against the units within the improvement area. ! have
provided for a 20 year term w)th simple interest at 8% per annum on
a declining balance basis. It appears we may not have a bond sale
on this project until Spring 1998 based on the conversation we had
with the engineer doing the structural analysis for the
Associat.ion.
Also, I am WOrking 0'1 a D~ve1opment Oontract the Aseoci~tion wi11
need to enter into with the City. and we will also heed from the
Associa~ion an engineering ana1ysis indicating the proposed
improvements recommend~d in the imp~ovement area along with a
AUG-14-97 THU 11:58
P. 03/08
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Kirk McDonald
July 30, 1997
Page 2.
f i nanc~ plan ShOW1 ng how the ma. i ntsnance and ope rat i on of the
deve 1 opment.! s common areas will be paid and along rang'e plan
indicating how other capital improvern~nts will be finanoed in the
imprcvQment area.
i
i"
Please review the ordinance and contact me if you have any other
questions or comments.
Very tru1y yours.
steven A. Sondra!l
z1w
enclosure
AUG-14-97 THU 12:00
P.OS/OS
-,
1 . 808
Rockford Owners AssoGiation~ Inc. (and any
successor in interest) shall also submit to
the City any other reports or information at
the times and as required by any contract
entered into between that entity and the City.
Notice of Riaht to File Obiections. Within five
days after the adoption of s@1.80 through 1.S0S of
this CodeJ the City C1erk is authorized and
directed to mail to the owner of each housing unit
in the Sandpiper Cove Housing Improvement Area: a
summary of these Code sections; notice that owners
sUbject to the proposed !-lousing Improvement Fee
have a right to voto this ordinance if owners of at
least 35 percent of the housing units within the
Sandpiper Cove Housing Improvement Area file an
objection with the City Clerk before the effective
date of this ordinance; and notice that a copy of
this ordinance is on file with the City Clerk for
public inSpAction.
2_
"'-'"
1 . 809
Amendment. This ordinance may be amended by the
Council upon compliance with the public hearins and
notice requirements set forth in Minn. Stat.
~428A.13~ subd. 2 of the Housing Improvement Act.
\"--'
Section 2. Effective Date. This Ordinance shall be effective
upon its passage and publication.
Dated the
day of
, 1997.
-
W. Peter Enck. Mayor
At test:
Valerie Leone, City Clerk
PUblished in the New Hope-Golden valley Sun-Post the
, 1997.)
day of
~
5
~
~OTICE OF PUBLIC HEARING PER MINN. STAT.
S~28A. 13 AUTHORIZING THE ESTABLISHMENT OF A
HOUSING IMPROVEMENT AREA FOR THE SANDPIPER
COVE TOWNHOME DEVELOPMENT
THE CITY OF NEW HOPE, MINNESOTA
Notice is hereby given that the City Council of the City o~
New Hope, Minnesota, will meet on the 28th day of July, 1997, at
7:00 o'clock p.m. at the City Hall, 4401 Xylon Avenue North, in
said City for the purpose of holding a pUblic hearing to consider
the establishment of a housing improvement area within the City of
New Hope as authorized by Minn. Stat. 99 4.28A.11 through 4.28A.21
over the following described property (see map for poundaries of
improvement area):
Lots 1 through 59, Sandpiper Cove,
all of which is according to the plat(s) thereof on file
and of record in the office of the Registrar Of Titles,
Hennepin CountY1 Minnesota.
All persons owning housing units in the proposed area that
wou 1 d be subj ect to a fee for hous i ng imp rovemen ts and othe r
interested persons will be given an opportunity to be heard and are
invited to appear at said hearing for the purpose of being heard
with respect to the establishment of the housing improvement area.
Accommoda t ions such as sign 1 anguage i nte rp rete r
printed materials are available upon request at least
days ln advance. Please contact the City Clerk
arrangements (telephone 531-5117, TDD number 531-5109),
or large
.5 working
to make
Dated the 7th day of July, 1997.
sf Valerie J. Leone
Valerie J. Leone
City Clerk
, Dub 1 i shed i r, the New Hope-Go 1 den Val I =:y Sun-Post "n the 16th '3.y
!if" July, 1997
ZONING DISTRICT MAP
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JUL-23-97 WED 08:29
p, 02/03
MICMI'\.zS.t- H. L^rLl::.UH
CORRIcK &: SONDRALLt PA.
ATTORNf:YS AT LAw
F'.Alinburgh Executive Office Pla2a.
8525 Edinbrook Crossing
Suitt: #203
1:Srooklyn Park, Minnesota 55443
TELEPHONE (012) 4a~71
rAX (&12) 42!l-Sa67
: F.VAl ASSls.rANT
SHARON 0, DE:RBY
!':Tl"V7iN A. SONOAA.t....
MARTIN P. MALeCHA
WIL.UAM C. STRAIT*
*APPAOVE,) "OR NEUTRAl.
July 23, 1997
Kirk McDonald
City of N~w Hop@
4401 Xylon Avenue North
New Hope, MN 55428
RE: Sandpiper Cove Housing
Improvement Area
Our rile; 99.11155
Dear Kirk:
Thi~ letter will confirm the recent tel~phone conversation we had
with Dan Leaf Pres;d~nt of the Sandpiper Cove Townhome Association.
They are asking for a continuance on the pUblic hearing schedulp.d
for the July 28th Council Meeting. Appar~ntly they need more time
to conduct the enginR~ring analysis of their units to determine the
specific improvements that need tu be made to their properties.
The pUblic hearing is requir""ed by Minn,' Stat. ~420A.13. After' the
hearing the Council will consider the adoption of an ordinance to
0sta.bl ish a. housing improvement area for Sandpiper Cove. 8as1cally,
the ordinance wil r allow the City to loan the Association funds for
repairs to the exterior area of the units in the development. The
loans will be made in the form of special assessments againRt the
properties.
The engineering analysis is ne~essary since state law requires a
descripLion of the necessary improvements must be set out in the
ordinance. The more specific we can be with this description will
8R8ist us in compliance with the statute and allow us to determine
the amqunt of runds necessary to make the required improvements.
Obviously, this is information the Council will need before it can
pass on t.he haws i ng i mprovcment area or-d i nanc.;a.
Ther~fore, it was decided to request a postponement of the public
hearing until August 1', 1.997. We will not need to r"epublish our
hearing notice but I suggesL we do another mailing to the property
owners i fl the deve lopment about the hear; no postponement unti 1
JUL-?3-97 WED 08:29
p, 03/03
Kirk McDonald
July 23, 1997
Page 2.
August '1th. Contact me if you haY~ any other questions or comments
about this matter.
Very truly yours,
9:-
Steven A. Sandra1,
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WJCl.lAB, R.I.OI'\..EUR.
JLUmll'.~
'IIl1l.l.lAloI (;, $l"RNT
CORRICK L .ioNDRALL. P.l'-.
ATTOI~'fEYB AT LAW
Ed.U:l.burgh Executive Office Plaza
8525 Edinbro1:lk. Crossing
suite 3203
Brooklyn Park. Minnesota 55443
~Pl1ONe (e12) ~
~AX('l2)~
---
uw.AOII D. DElllIT
June 2, 1997
Kirk McDonald
City of New Hope
4401 Xylon Avenue Nor~h
New Hope, MN 55428
RE: sandpiper Cove Loan Program
Our File: 99."'55
Dear Kirk:
This latter will confirm our May 29, 1997 meet.ing with the
r8pre~enLatiYes from the Sandpiper Cove Townhome Assoc. regarding
the establishment of a housing improvement area for their property
pursuant to Minn. Stat. ~~428A.11 through 428A.21.
This is a new program established by ~he State last year. It will
allow for City funded loan~ ~o property owners unable to obtain
financing through private means. Howav~r, instead of securing the
loans as a typical mortgage transaction Lhe City will be allowed to
assess the benefitting properties much like a special assessment
project.
However, it will require the affected property owners to petition
the City for an ordinance establishing the improvement district and
the wor'k wi 1 1 need to be performed as a publ; c i mpl""ovement in
compliance with the Uniform Municipal Contracting law. My March
27th letter goes through some of the dAtail~ an how this program
will work.
It is my understanding thA S~ndpiper Cove Homeowners Assoc. will
submit a petition as soon as possible. We can then start on
drafting the enabiing ordinance for consideration by the Council.
This may take some time since this ;s a new program with little or
no past history from other cities on how the program will. It ;s my
understanding staff is contacting Brooklyn ~ark in that they may be
working with this program at this time. We should be able to
utilizQ thQir ~ramawork for our prooram and ordinanc9.
,~ON :]8' 52
3/03
Kirk McDona:-ct
June' 2, 1997
Page 2.
Contact me if you have any fur~her Questions or comments about this
matter.
Very truly yours,
C:-="
~-
Steven A. Sandra"
Zlm
4401 Xylon Avenue North
New Hope. tv1innesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
TOO: 612-531-5109
City Hall Fax: 612-531-5136
Police Fax: 612-531.5174
Public Works Fax: 612-533-7650
Fire oep't, Fax: 612-531-5175
August 26, 1 997
Mr. Dan Leaf, President
Rockford Homeowners Association
8951 42nd Avenue North
New Hope, MN 55427
Subject:
Ordinance Establishing a Housing Improvement Area for Sandpiper Cove
Dear Dan:
Please be advised that on August 25, 1997, the New Hope City Council continued the public hearing
regarding an ordinance establishing a Housing Improvement Area for the Sandpiper Cove Townhome
Development until the October 13 Council meeting in order to give the association more time to complete
an engineering analysis, per our discussion. As you are aware, before the ordinance can be completed, a
specific description of the necessary improvements must be identified and that description will be
incorporated into the ordinance. As soon as your analysis is completed, please submit a copy to the City so
that it can be forwarded to the City Attorney and Inspection's Department for review. If possible, could you
please submit this information to the City the week of September 29 so that there is adequate time to
prepare for the October 13 meeting.
If you have any questions prior to that time, please contact me at 531-5119.
"Sincerely, .
-\<~~'\\(~
Kirk McDonald
Management Assistant!
Community Development Coordinator
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Doug Sandstad, Building Official
Jean Coone, General Inspector
Stephanie Olson, Community Development Specialist
Valerie Leone, City Clerk (Improvement Project No. 600)
F . S C' &lv~ F F '1 L' .
amlly tyled Ity iF'!li!\ lY'\,\i'." or ami y IVlng
11,', "'I'
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m\1Y o~
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~w \-\o~
COUNCIL
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Public
City Manager HearinQ
D 7 -28-97 Item No.
Kirk McDonald
By: Management Assistant By: ~ 7 . 1
PUBLIC HEARING: AN ORDINANCE E~BLlSHING A HOUSING IMPROVEMENT AREA FOR THE
SANDPIPER COVE TOWNHOME DEVELOPMENT, PURSUANT TO MINN. STAT. S428A
(IMPROVEMENT PROJECT NO. 600)
This is the public hearing to consider the adoption of an ordinance establishing a Housing Improvement
Area for the Sandpiper Cove Townhome Development (Improvement Project No. 600). Staff is
recommending that the hearing be continued until the August 11 Council meeting. Before the
ordinance can be completed, an engineering analysis of the complex must be completed to determine
the specific improvements that need to be made to the properties because a description of the
necessary improvements must be identified in the ordinance. Dan Leaf, President of the Sandpiper Cove
Townhome Association, has contacted the City and indicated that they need more time to complete the
engineering analysis and he has requested a continuance of the public hearing.
At the June 9 Council/EDA meeting, staff discussed the option of the City establishing a Housing
Improvement Area to provide financial assistance to upgrade the exterior of these properties. Sandpiper
Cove is a townhouse development located at 8101-8953 42nd Avenue that contains 36 owner-occupied
townhomes. The complex is 20 years old and there are significant exterior deterioration problems. The
association has sought preliminary bids from contractors who estimated that $350,000 is needed to
make siding, deck, window, and other improvements. They have approached the City for assistance
because, as a townhouse association consisting of individual owners, they have been rejected by
several banks for loans to make the needed improvements.
At that meeting, the City Attorney outlined new legislation and procedures to initiate a program that
would allow for City-funded loans to property owners unable to obtain financing through private means.
Instead of securing the loans as a typical mortgage transaction, the City could assess the benefiting
properties similar to a special assessment project. The Council was generally receptive to this idea and
directed staff to proceed with the preparation of an ordinance.
MOTION BY ((1/1 fAil
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TO: ' /1'l11 LI.t(~j if./ /L~O 0 IVh~!..- c.. i
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SECOND BY
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Review:
Administration:
Finance:
RFA-OOl
Request for Action
Page 2
7 -28-97
The first steps to establish a housing improvement area are as follows:
1. Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement
area or areas and specifically indicating the necessary improvements to be made within the area.
The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be
considered, there must be a petition by at least 25 percent of the owners within the proposed area
requesting the enabling ordinance. A petitioner with 28 out of 36 signatures (77%) was
submitted at the June 9 meeting.
2. Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the
hearing and within the ordinance, the Council would need to make findings that the necessary
improvements will not be made if the housing improvement area is not created and making the
improvements within the area is needed to maintain and preserve the area's housing units. Further,
the enabling ordinance will allow the City to impose a fee against the benefiting property owners to
pay for the cost of the improvements. Notices have been sent notifying all of the property
owners about this hearing.
Staff recommends that the hearing be continued until August 11.
~
NOTICE OF PUBLIC HEARING PER MINN. STAT.
S428A.13 AUTHORIZING THE ESTABLISHMENT OF A
HOUSING IMPROVEMENT AREA FOR THE SANDPIPER
COVE TOWNHOME DEVELOPMENT
THE CITY OF NEW HOPE, MINNESOTA
Notice is hereby given that the City Council of the City of
New Hope, Minnesota, will meet on the 28th day of July, 1997, at
7:00 o'clock p.m. at the City Hall, 4401 Xylon Avenue North1 in
said City for the purpose of holding a pUblic hearing to consider
the establishment of a housing improvement area within the City of
New Hope as author i zed by M inn. Stat. 99 428A. 11 th rough 428A. 21
ove r the fo 11 ow i ng 'desc r i bed p rope rty (see map for poundar i es of
improvement area):
Lots 1 through 59, Sandpiper Cove,
all of which is according to the plates) thereof on file
and of record in the office of the Registrar Of Titles,
Hennepin County, Minnesota.
All persons owning housing units in the proposed area that
wou 1 d be subj ect to a fee for hous i ng imp rovements and othe r
interested persons will be given an opportunity to be heard and are
invited to appear at said hearing for the purpose of being heard
with respect to the establishment of the housing improvement area.
Accommoda t ions such as sign 1 anguage i nte rp rete r
printed materials are available upon request at least
days in advance. Please contact the City Clerk
arrangements (telephone 531-5117, TDD number 531-5109).
or large
5 working
to make
Dated the 7th day of JulY1 1997.
sf Valerie J. Leone
Valerie J. Leone
City Clerk
I,Publ ished in the t~ew Hope-Golden Val,~y Sun-Post en the 16th lay
ejf July, 1997 )
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NEW HOPE
ELEMENTA
SCHOOL
CIVIC
CEN"T:ER
PARK
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JUL-23-97 WED 08:29
p, 02/03
$lTI;V>;;N A. SONO",,^,-L.
MICM/\St. H. V.>-Lt:UH
MARTIN P. MAI.E;CHA
WII.UAM C. STRAIT*
CORRIcK & SONDRALL, RA.
AnORNIWS AT LAW
J"..tiiTlburgh Executive Office Plaza
8525 Edinbrook Crossing
Suite H203
Brook.lyn Park. Minnesota 55443
TELEPHON~ (G1~) 4-a:l-:lG71
FAX (612) 425-5867
I F.0Al. ASSIS'(ANT
SHARON D. DERBY
*APPAO\IE\, AOR NEUTRAL
July 23, 1997
Kirk McDonald
City of N~w Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE: Sandpiper Cove Housing
Improvement Area
Our File; 99.11155
Dear Kirk:
This letter will confirm the recent tel~phone conversation we had
with Dan Leaf Presid~nt of the Sandpiper Cove Townhome Association.
They are asking for a continu~nce on ~he public hearing scheduled
for the July 28th Council Meeting. Appar~ntly they need more time
to conduct the enginRRring analysis of their units to deter'mine the
specific improvoments that need tu be made to their properties.
The pUblic hearing is required by M.inn. Stat. ~428A.13. After' the
hearing the Cowncil will consider the adoption of an ordinance to
ostab1 ish a. housin9 improvement area for Sandpiper Cove. 8a.sical1y,
the ordinance wil r allow the City to loan the Assooiation funds for
repairs to the exterior area of the units in the development. The
loans will be made in the form of special assessments again~~ the
pr'upert i es,
The engineering analysis 1S ne~essary since state law requires a
descripLion of the necessary improvements must be set out in the
ordinance. The more specific we can be with this description will
a~sist us in compliance with the statuLe and allow us to determine
the amount of funds necessary to make the required improvements.
Obviously, this is information thA Council will need before it can
pass on the housing improvement area ordinance,
Therefore, it was decided to request a postponement of the public
hearing until August 11, 1997. We will not need to republish our
hearing notice but I suggest we do another mailing to the property
owners i (l the development about the hear; no postponement unti 1
JUL-23-97 WED 08:29
P.03/03
Kirk McDonald
July 23,1997
Page 2.
August 11th_ Contact me if you have any other questions or comments
about this matter.
Very truly yours,
9::-
Steven A. Sandra11
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WCIlAB.J:l.W1,.EUR .
~ l', J.W,.ECHA
WIWAM Co :miNT
CORRICK f:.-.. ';oNDRALL, P.}L
ATtOfJ{EYS AT LAW
Edinburgh Ex~cutive Office P1a..za
SlJ25 Edinbrook Crossing
Suite ;203
Brooklyn Park. Minnesota 55443
~I'liONE (1tl2) ~
-;:AY.{&12)~
........_.tafT
slWlOII D.llERlIl
June 2, 1997
Kirk McDonald
City of New I-lope
4401 Xylon Avenue Nor~h
New Hope, MN 55428
RE: Sandpiper Cove Loan Program
Our File: 99.11155
Dear Kirk:
This letter will confirm our May 29, 1997 meeting with the
represenLatives from the Sandpiper Cove Townhome Assoc. resardins
the establishment of a housing improvement area for their property
pursuant to Minn. Stat. ~~428A.11 through 428A.21.
This is a new program established by the State last year. It will
allow for City funded loan~ to property owners unable to obtain
financing through private means. HowevQr, instead of securing the
loans as a typical mortgage transaction Lhe City will be allowed to
assess the benefitting properties much like a special assessment
project.
However. it will reQui.re the affected property owners to petition
the City for an ordinance establishing the improvement district and
the wor'k will need to be performed as a public improvement in
compliance with the Uniform Municipal Contracting law. My March
27th letter goes through some of the dAtail~ on how this program
will work.
It ;s my understandin~ the S~ndp;per Cove Homeowners Assoc. wi"
submit a petition as soon as possible. We can then start on
drafting the enabiing ordinance for consideration by the Council.
This may take some time since this is a new program with little or
no past history from other cities on how the program will. It is my
understanding staff is contacting Brooklyn Park in that they may be
working with this program at this time. We should be able to
utilize their Tramework for our proQram and ordinance.
MON 08'52
, ':3/03
Kirk McDona-d
June 2, 1997
Page 2.
Contact me if you have any further Questions or comments about this
matter.
Very truly yours,
~
Steven A. Sandral1
Zlm
4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
City Hall: 612-531-5100
Police: 612.531-5170
Public Works: 612-533.4823
TOO: 612-531-5109
City Hall Fax: 612-531-5136
Police Fax: 612-531-5174
Public Works Fax: 612-533.7650
Fire Dep't. Fax: 612-531.5175
July 30, 1997
Mr. Dan Leaf, President
Rockford Homeowners Association
8951 42nd Avenue North
New Hope, MN 55427
Subject:
Ordinance Establishing a Housing Improvement Area for Sandpiper Cove
Dear Dan:
Please be advised that on July 29, 1997, the New Hope City Council continued the public hearing
regarding an ordinance establishing a Housing Improvement Area for the Sandpiper Cove Townhome
Development until the August 25 Council meeting in order to give the association more time to complete an
engineering analysis. As you are aware, before the ordinance can be completed, a specific description of
the necessary improvements must be identified and that description will be incorporated into the ordinance.
As soon as your analysis is completed, please submit a copy to the City so that it can be forwarded to the
City Attorney. If possible, could you please submit this information to the City the week of August 11 so that
there is adequate time to prepare for the August 25 meeting.
If you have any questions prior to that time, please contact me at 531-5119.
Sincerely,
.,
-'----.\_~~\.\\\-'\ ''', '
\ ", '-~ ~\-. ~, . y- ~:t\'<)J::;
Kirk McDonald
Management Assistant!
Community Development Coordinator
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Doug Sandstad, Building Official
Jean Coone, General Inspector
Stephanie Olson, Community Development Specialist
Valerie Leone, City Clerk (Improvement Project No. 600)
Family Styled City 1fJi../\~\}' For Family Living
iJ i < V \J'/
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"me · O,c.; I
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EDA
REQUEST FOR ACTION
Originating Department
Approved for Agenda
Agenda Section
City Manager
FnA
By:
n 6-9-97
ByJ/
(
DISCUSSION REGARDING SANDPIPER COVE TOWNHOME ASSOCIATION LOAN PROGRAM AND
ESTABLISHMENT OF HOUSING IMPROVEMENT AREA (IMPROVEMENT PROJECT NO. 600)
Item No.
Kirk McDonald
Management Assistant
4
For the past 1 ~ years, City staff have met on several occasions with representatives of the Sandpiper
Cove/Rockford Townhome Association regarding potential City financial assistance to upgrade the
exterior of these properties. Sandpiper Cove is a townhouse development located at 8101-8953 42nd
Avenue that contains 36 owner-occupied townhomes (four 4-plexes and 10 duplexes). The complex is
20 years old and there are significant exterior deterioration problems (please refer to the enclosed
correspondence). They have sought preliminary bids from contractors who estimated that $350,000 is
needed to make siding, deck, window and other improvements. Although they have recently taken steps
to increase their monthly association dues, they do not have the financial capability to make these
improvements. Due to the fact that they are a townhouse association consisting of individual owners,
they have been rejected by several banks for loans to make the needed improvements. That is why they
have approached the City for assistance. Staff have cooperated with them because it is felt that the City
has a vital interest in maintaining multi-family dwellings.
Staff and the City Attorney originally explored utilizing the existing multi-family financial assistance policy
for apartments for this situation, however, the policy is not applicable because it requires a 50 percent
match from the owners. Over the past year, staff have inquired about programs utilized in other cities to
address townhome/condominium improvements and became aware of some new legislation that was
recently enacted to address these situations.
The City Attorney has outlined the new legislation and procedures in his attached March and June
correspondence. The program allows for City-funded loans to property owners unable to obtain financing
through private means. Instead of securing the loans as a typical mortgage transaction, the City can
assess the benefiting properties similar to a special assessment project.
TO:
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Review:
Administration:
Finance:
RFA-OOl
uest for Action
Page 2
6-9-97
The general process to establish a housing improvement area is as follows:
1. Initially, the Council would need to adopt an enabling ordinance specifically defining the improvement
area or areas and specifically indicating the necessary improvements to be made within the area.
The City cannot adopt this ordinance on its own initiative. Before such an ordinance can be
considered, there must be a petition by at least 25 percent of the owners within the proposed area
requesting the enabling ordinance.
2. Before adoption of the enabling ordinance, the City would need to conduct a public hearing. At the
hearing and within the ordinance, the Council would need to make findings that the necessary
improvements will not be made if the housing improvement area is not created and making the
improvements within the area is needed to maintain and preserve the area's housing units. Further,
the enabling ordinance will allow the City to impose a fee against the benefiting property owners to
pay for the cost of the improvements.
3. The property owners within the improvement area also have veto power over the ordinance. In other
words, if 35 percent of the property owners object to the ordinance after its adoption, it will not take
effect. As a result, the effective date of the ordinance must be at least 45 days after its adoption by
the City Council. During that 45-day interim period, the property owners, after all receive notice of the
ordinance and its contents within five days of its adoption, can file an objection to the ordinance with
the New Hope City Clerk. If 35 percent of the owners object, the ordinance is void.
4. If the ordinance is not vetoed, property owners can individually object to their inclusion in the
improvement area or the imposition of fees against their property. The objection procedure works
similar to the special assessment challenges found in Chap. 429. Also, the City will need to hold a
second public hearing before it can collect fees or specially assess properties for payment of the
improvement costs. Again, this works like the special assessment procedure found in Chap. 429.
5. If an improvement area is established, the repairs would be done as a public improvement. This may
potentially require the City to act like a general contractor for repairs on private property. The City
would be subject to the Uniform Municipal Contracting Law for letting contracts.
6. Finally, this law has a sunset provision of June 30, 2001. After said date, no housing improvement
areas can be established pursuant to Minn. Stat. S428.11, et al. Therefore, we do have some time to
consider this kind of funding option for the Sandpiper Cove Development.
City staff recently met with representatives of Sandpiper Cove and explained this program and the
process. They are interested in the program and have submitted the enclosed petition requesting that
the City begin work on establishing an ordinance that would create a housing improvement area for their
property.
Staff desires to discuss this request and program with the EDA to determine if the EDA is favorable
towards proceeding with this project/program. If the EDA is agreeable, the direction to staff would be to
begin work on the creation of such an ordinance.
;/;~ ~
June 2, 1997
"'-.
~~~
We the undersigned, members of the Rockford Homeowners Association, request and
petition the City of New Hope, for the creation of an enabling ordinance and the
conception of a special district for a housing improvement area.
8807
8809
8811
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June 2, 1997
We the undersigned, members of the Rockford Homeowners Association, request and
petition the City of New Hope, for the creation of an enabling ordinance and the
conception of a special district for a housing improvement area.
Unit No.." ~,'"
8805
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June 2, 1997
0/0/ q 7
We the undersigned, members of the Rockford Homeowners Association, request and
petition the City of New Hope, for the creation of an enabling ordinance and the
conception of a special district for a housing improvement area.
Unit No.
8805
8807
8809
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8819
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8963
June 2, 1997
We the undersigned, members of the Rockford Homeowners Association, request and
petition the City of New Hope, for the creation of an enabling ordinance and the
conception of a special district for a housing improvement area.
Unit No
8805
8877
8807
8879
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September, 1996
Members of New Hope City Council
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Dear City Council Members:
We are writing to you as an association to request your assistance in a matter which is of
great importance to us. As residents of the City of New Hope, Sandpiper Cove
Community and members of the Rockford Townhouse Association, we want to take pride
in where we live. However, the condition of our townhomes is deteriorating at a rate with
which we cannot keep up. We understand the City of New Hope takes pride in the
condition of its residential properties. We want to be proud of our townhomes and to
have them be an attractive and pleasant enhancement to this city.
We are living with a problem that began when our homes were built. Gleason
Construction, the contractor who constructed our townhomes, used materials of poor
quality and whose construction techniques were questionable. The materials have lasted
approximately fifteen years but are now deteriorating and are in desperate need of repair.
At various levels of urgency, our homes need to be sided, gutters and downspouts
applied, roofs, windows, patio doors and decks.
The founders of the Association felt, with the newly built homes, there was no need to put
money aside in a maintenance fund for future repairs. A majority of the current residents
are relatively new to the complex and had no control over or voice in the decisions made
so many years ago. We have just recently started such a maintenance fund; however, it
will take some time before assets are built up.
We are doing all that is within our means to correct this problem ourselves. Even with
the majority of our residents living below New Hope's median income level, we have
voted and passed a $20 per month increase from $115 to $135 in our association dues
with an additional $20 increas~ effective January, 1997 from $135 to $155. Within the
past five years, the monthly fee has increased from $75 to $135. Unfortunately, this will
only make a small impact on the property's overall need.
Page 2.
The work to be performed is not superficial improvements that we desire. Some residents
can no longer walk on their decks due to the structural weakness, some have water
leaking through their light fixtures and others have siding that is rotting right off their
home. The improvements we are requesting your assistance with are vital and would
benefit us as well as the City of New Hope. Aesthetically, the property would be much
more attractive and pleasing with new vinyl siding, roofs, windows, patio doors and
stable decks.
Being located right off the major intersection of 42nd and Boone Avenues, positions our
townhomes in the direct view of the public. We do not want our property to nullify the
improvements that have been made along 42nd Avenue over the past years. We want to
be considered an asset rather than a drawback.
We hope that by receiving this letter you will see our serious concern and dedication to
this subject.
Once again we ask you to carefully consider the possibility of assisting us with the
special funding so improvements can be made.
Respectfully,
Residents of the Rockford Homeowners Association
New Hope City Council,
I have been a resident of Sandpiper Cove off and on since it was built by Gleason
Construction in 1978 and have lived in New hope since 1970 when my parents bought a
home on Northwood Parkway. The city of New Hope has always been a nice place to
grow up and live in. I'm stating this from first hand experience. I would like it to stay that
way. Sandpiper Cove is in desperate need of repairs and updating. The repairs are coming
too fast and numerous for us as an Association to keep up with. We need financial help.
We've been to five banks already and cannot get loans because we are an association. We
spent $25,000 on repairs this year alone and these are only band-aid jobs that are covering
up needed major repairs.
Some of the repairs needed as follows are:
1) Decks, some rotting right off of their buildings. All are original decks made without
pressure treated lumber. None of the decks are up to current codes and most of them leak.
2) Windows and patio doors, these were of poor quality and were installed poorly - as a
result most are to the point of total failure
3)Siding and garage doors, again a poor choice of materials and most were installed
wrong, resulting in damage to the builtrite as well on a lot of the buildings.
4)Rllilf.s., these should last 3-5 more years before needing replacement.
5)Parking lot, will have to be seal coated in 1997 at a cost of about $7000 to $8000.
6)Foundations, at least one garage floor will have to be replaced in 1997 due to settling.
As you know we're on a swamp.
This is just an overview to help you assess are situation.
Estimated cost of repairs needed is $350,000 (see attached bids). This is by no means a
final figure but will be close when were done.
A brief financial picture:
$13,258 in savings account at Norwest
$5000-$6000 in account with management company
$4860 taken in from montWy dues, $5580 starting in January 1997
$2200 in fixed montWy expenses
Enclosed is information that we have come up with so far.. Please let us know of any
other information you will need.
Thank You
Daniel P. Leaf
President Rockford Owners
ROCKFORD HOMEOWNERS ASSOCIATION
Sandpiper Cove Townhomes
The following information was compiled to help establish the demographics of our
community. A copy of the survey used to compile the information was sent to each
household in the complex in November and December 1995.
SAMPLE SIZE: 36 homes/homeowners
Number of Responses: 20
Percentage Responding: 55 %
I '
QUESTION #1: Do you own or rent your home?
All respondents were owners - 1 00%
QUESTION #2: If you rent, who owns your home?
Cannot determine / no renters responded.
QUESTION #3: If you own, how long have you lived in your home?
Average length of ownership: 6.37 years
Median length of ownership: 4.5 years
(High / 17 years - Low / 2 months)
QUESTION #4: What was the purchase price of your home?
Average purchase price: $58,900.00
Median purchase price: $57,500.00
(High / $80,000 in 1981 - Low / $49,500 in 1990)
QUESTION #5: Which Mortgage Company holds current mortgage?
Citizens Independent Bank 1 0%
Norwest Mortgage 20%
rCF Mortgage 20%
Other / each 5% 50%
QUESTION #6: What is your average annual household income?
$15,000 - 20,000 5%
$20,001 - 25,000 20%
$25,001 - 30,000 20%
$30,001 - 35,000 5%
$35,001 - 40,000 45%
Other: 5%
Results calculated this 30th day of December, 1995.
i: . - V'l/.
BY" -/,1;// 1t.1 ~ / /~j';:,"tfd_4---
. . . / .....//."C,-t} ~~. ,j J ',-,.y' t- ~" "J
Teresa L. Connors
Vice- President
l~-\ ,~~~~{-~ a\~
~~~~.~~~.
January 5, 1996
CITIES MAINTENANCE
& CONSTRUCTION, IN-c.
6311 WAYZATA BOULEVARD, SUITE 310
MINNEAPOLIS, MINNESOTA 55416-1224
TELEPHONE:' 612-797-8606
FAX: 612-797-8601
Christine Houchins .
Cities Management. Inc.
6311 Wayzata Blvd.
Suite 310 .
Minneapolis, MN 55416
Regarding: St. Piper Cove
Dear Christine:
Enclosed please find copies of the report and recommendations for the above
project. This study of the property includes the inspection notes we gathered
from our walk through with the owners, a priority listing of issues that should be
addressed, along with an estimated cost of the repairs.
Please take note that the bids for the various repairs are based on today's
market prices and are firm for about 60 days. Ifthis project i~ not scheduled
for work at this time, I would suggest that you add a 10% per year price increase
allowance to each bid.
If you have any questions, please feel free to call me.
Thank you.
Sincerely,
/'?
...:.......
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I,
SANDPIPER COVE
PRIORITY USTING OF REQUIRED REPAIRS
1. Roofing
2. Gutters
3. Blown in Insulation
4. Windows.
---
//
5. Patio Doors/
./
6..Siding '/
7. Decks (
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'8: p'ainting ,
9. Misc.-Dumpsters & HuatAway
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SANDPIPER COVE
REPAIRS AND REPLACEMENT ESTIMATES
1. ROOFING
25 YEAR GAF Royal Sovereign shingle roof.
Remove all plumbing stacks and vents
Remove all existing roofing materials
Replace any rotten roo~ boards
Apply weather ice and water shield.
Apply 15# felt
Install new preformed valleys, galvanized
Apply fiberglass shingles with nails
Replace all plumbing stacks and vents.
Apply new Boston Ridge
'Clean up and hual away all debris
25 year materials warranty and 10 year labor .warranty
ALL UNITS WiLL REQUIRE REROOFING-TOTAL BID..........................$90,000.00
GUTTERS
Alcoa aluminum seamless gutters and downspouts
color as selected from brown or white
Complete perimeter of each unit is to be included.
ALL UNITS WilL REQUIRE GUTTERS -TOTAL BID.:............................$15,325.00
BLOWN IN INSULATION
Blow in new fiberglass insulation to meet code of
equal to an R-38 rating (Approx 3216 square feet).
Each attic now has about 6" of insulation which does not meet code.
, ..
ALL UNITS WILL REQUIRE NEW INSULATION-TOTAL BID..................$10,273.00
WINDOWS
. Vinyl clad aluminum with insul8ted clear glass, extension jambs,
storm windows and screens
144-40" x 55" '
44-40" x 67"
ALL UNITS REQUIRE NEW WINDOWS-TOTAL BID.......,.....................$89,132.00
'PATIO DOORS .
Vinyl clad aluminum doors, ,special site 6'51/2" x 6'9" low E glass
ALL UNITS REQUIRE NEW PATIO DOORS-TOTAL 8ID.......................$138,OOO.00
SIDING
Alcoa .19 aluminum siding.
Tear off old siding, hual away and dispose
Cover soffits, facia, window and door openings, overhead door trim, full
chase.
Install 1/4 inch fan fold
ALL UNITS REQUI~E NEW SIDING-TOTAL BID..........................~........$346,020.00
DECKS
1/2 of all decks on site need total replacement"
1/2 of decks on site need upgrade to meet code
Decks to be constructed of .040 treated lumber
Posts are 6" x 6" to meet code
Pickets are spaced every 4" to meet code
ALL UNITS REQUIRE DECKS-TOTAL BID...........................................$97,578.00
PAINTING-FRONT STEPS AND DECKS
Hand sc~ape peeling paint
Prime paint bare wood
Paint or stain with one coat of exterior latex
ALL DECKS/STAIRS REQUIRE PAINTING-TOTAL BID.........................$25,OOO.OO
MISC-DUMPSTERS.
If window, doors or decks replacements is required than 20 yard
dumpsters will be needed.
ADD FOR DUMPSTERS................................................................... .$3, 500. 00
ALL PRICES INCLUDE ALL MATERIALS, LABOR, TAXES AND PERMITS
PLEASE NOTE THAT THE CURRENT SIDING .WOULD NOT NEED
REPLACING FOR AT LEAST TWO YEARS IF THE ROOFS AND GUTTERS ARE
REPLACED NOW.
SANDPIPER. COVE INSPECTIO:; NOTES
UNIT # 8845
Roof: Needs 12" minimum of. biown in insulation
No snow or ice on roof-all heat is escaping
Siding: Facia is. rotted, soffit is bowed, masonite siding is swollen
from moisture. Siding is pulling away from the structure.
Interior Walls: Major stress cracks on some walls. Some walls are bowing
Door frame in bedroom is bowing:
Entrance Doors: Not plumb. Needs weather striping
Patio Doors
Rotted and leaking at header
Windows:
Frames are bowed and rotting. No storm. windows throughout
Garage Door: Weather strip missing. Needs painting.
Foundation: Masonite at foundation is rotted. Major stress cracks.
Decks: Deck joists are rotted-very dangerous.
Some boards' are falling down.
Exterior Paint: Decks and stairs need, scraping and paintin'g
'.
Gutters: None on bldg. Should have gutters around perimeter.
Conctete:~' Garage floor is heaving. Concrete at. walkway is heaving
SANDPIPER COVE INSPECTION NOTES
UNIT # 8869
Roof: Soffits need additional ventilation. Insulation is wet in attic.
Needs 12" of blown in insulation . No snow or ice on roof-all
heat is escaping. Shingles are curled-needs re-roofing
Siding: Wet and peeling, bowing and swollen from moisture.
Interior Walls: OK
Entrance Doors: Needs new threshold. Entrance door to' garage is out
of plumb-b~ 1" on perimeter.
Both doors are rotted through the wood frame-needs replacement.
Patio Doors
VI/indows: No storms.
Leaking cold air through the seams. Siding is bad around
sashes.
Gamge Door: Gaps at ends-Needs new stops and gasket.
Foundation: Front stairs have settled-no frost footings poured under the,
original concrete. Block walls in garage are cracked. Flooring
under carpet is cracked. Flooring in garage is cracked.
, .
Decks: Deck is pulling away from the structure. Boards are warping.
Posts are not to code, pickets are not to cO,de
Exterior Paint:
Chipped badly on stairs
Gutters: None-needs new gutters around perimeter
Concrete: See foundation
. SANDPIPER COVE INSPECTION NOTES
. UNIT#
8901
(Owner Not Home)
Roof: Could not inspect-no snow will probably need insulation and new roof
Needs additional soffit vents
Shingles are curled-needs rc-~oofing
Siding: Wet and rotted. Trim is rotted and loose. Water is coming through
the 'sIding in the back.
Interior Walls:
Could not inspect
Entrance Doors:
Patio Doors
Rotted exterior frames
Windows:
No storms. Frames on exterior are rotted
Garage Door: Bottom panel is rotted. Needs seals and gasket
. -,
Foundation:
Decks:
Exterior Paint:
Gutters:
Facia rotted. Needs gutters around perimeter
Con~fete: .
SANDPIPER COVE INSPECTION NOTES
UNIT # 8931
(Owner' Not Home)
Roof: No snow or: 'ice will need 12" additional insulation blown in
Shingles 160se and curled":needs re-roofing
Siding: Rotted under front deck. S w.ollen.. from moisture
Interior Walls: Could not inspect
Entrance Doors:
Patio Doors Frames are rotted, need replacement of entire doors
Windows: No storms., Frames on exterior are rotted.
Garage Door: Frame is rotted-, entry door is also rotted (31 x 6'8")
Foundation:
,
Masonite at foundation is rotted. Front stairs are settling-no
frost foc;>tings were poured.
Decks: Header rotted, flooring boards' are rotted, joist stringers
are rotted, 2' x 8 joists are rotted-deck needs to be rebuilt.
Exterior Paint: Facia rotted in back
Gutters: No gutters. Needs gutters around perimeter.
Concrete: could not inspect in garage
Builders INC.
7401 - 42nd Ave. No.
Minneapolis, MN 55427
533-6168 Fax 533-6211
July 25, 1996
Rockford Home Owners Assoc.
Attention: Debbie Tompkins
RE: 8943-8945 42nd Ave. N.
Dear Mrs. Tompkins,
Thank you for inviting me to offer you our quote on the exterior
work required on the above property. It is my recommendation to
have the existing siding removed along with the 1 X 6 planking on
windows and corners, then use a styrofoam insulat ion under all
siding for a firm and flush substrate.
1. Remove existing siding and planking, haul away.
2. Check all lumber, repair or replace as necessary.
3. Caulk and seal all doors and windows.
4. Use a 3/8 inch styrofoam insulation under all siding.
5. Re-side complete building in a permanent solid vinyl
siding in your choice of color and profile with a life
time warranty.
6. Cover all soffit and fascia in aluminum in your choice of
color.
7. Cover all trim on doors and windows in aluminum, choice of
color.
8. Furnish permit, license, bond and lien waiver.
9. Remove all work related material on completion.
Your investment in above work would be $8,674.00.
Windows
Furnish and install 10 new vinyl replacement windows.
These windows are double insulated glass
Fusion welded frames and sash
Thickest P.V.C. walls
Lifetime warranty
30 year glass warranty
Your investment in the above windows would be $3,287.00.
RE: 8805-8811-8877-8883
42nd Ave. N, New Hope
We measured this uni t and it seems to have more windows and
openings than some of the other 4 units because of this the other
unit would have a lesser price.
Using same specification as 8943-8945.
Your total investment in this building would be $20,890.00.
The vinyl windows for this 4 unit building would be $11,152.00.
I want to thank you for considering NORTH CENTRAL BUILDERS for your
remodeling needs. If you have any questions or concerns give me a
call.
Sincerely,
//,
~. ~ / )/o>U/o.4Y:;""-7
Bob Norcross
STEVEN A. SONDRALL
MICHAEL R. LAFLEUR
MARTIN P. MALECHA
WILLIAM C. STRAIT*
CORRICK & SONDRALL, P.A.
ATTORNEYS AT LAW
Edinburgh Executive Office Plaza
8525 Edinbrook Crossing
Suite #203
Brooklyn Park, Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 425-5867
LEGAL ASSISTANT
SHARON D. DERBY
*APPROVED ADR NEUTRAL
March 27, 1997
Kirk McDonald
Management Asst.
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE: Loan Request for Housing Improvements/Sandpiper Cove
Association
Our File No: 99.11155
Dear Kirk:
This letter is your long awaited response regarding your questlOn
about the loan and other funding options for needed improvements at
the Sandpiper Cove Townhome Development. It is my understanding
the property owners in the development need collectively between
$200,000 to $300,000 for replacement of siding, replacement and/or
repair of defective decks and other structural problems. It is my
further understanding the Townhome Association is severely
underfunded and as a result are without any reserves to pay for
these needed repairs. The Association has also informed us neither
the Association or the individual unit owners can arrange a private
loan. Banks apparent 1 y wi 11 not transact bus i ness wi t h the
Association and the individual unit owners lack equity in their
units sufficient to secure a loan by a mortgage against the
individual units.
The City has two options it could implement to assist the
Association and individual owners at the Sandpiper Cove Development
as follows:
1. Bond counsel has indicated we could provide loans to
either the Association or the individual unit owners
utilizing our existing TIF funds. Basically, we would be
acting like a private banking institution taking back
mortgages from the individual owners and/or the
Association as security for the loans. Unfortunately,
the City has the same problem as the lending institutions
i nth i s reg a rd. N am e 1 y, 1 a c k 0 fun i t e qui t y ass e cur i t Y
Kirk McDonald
March 27, 1997
Page 2
for the loans. Nor do we want to become owners of the
units in the event of default on the loans requiring
foreclosure of the proposed mortgages and quite possibly
be i n g sub j e c t to sup e r i 0 r fir s t mo r t gag e s a 1 rea d y i n
place on the property.
2. Our second option involves establishing a housing
improvement area unde r Mi nn. St at. ~~428A. 11 through
428A.21. As you know, this law was enacted during the
1996 legislative session. Basically, it allows us to
def i ne a hous i ng imp rovement area, pe rmit s us to make
improvements within said area and assess the benefiting
properties for the cost of the improvements much like the
spec i a 1 assessment p rocedu re unde r Chap. 429. Th is
a p pea r s to be a mo rev i a b 1 e sol uti 0 n tot he fun din g
problem for Sandpiper Cove than direct loans to
individual property owners from excess TIF funds secured
by a mortgage.
The remainder of this letter will briefly detail how the City could
implement a housing improvement area for the Sandpiper Cove
Development or any area in the City. Initially, the Council would
need to adopt an enabling ordinance specifically defining the
improvement area or areas and specifically indicating the necessary
imp rovement s to be made wit hi n t he area. The Ci t Y cannot adopt
this ordinance on its own initiative. Before such an ordinance can
be considered, there must be a petition by at least 25% of the
owners within the proposed area requesting the enabling ordinance.
Before adoption of the enabling ordinance, the City would need to
conduct a pub 1 i c hear i ng. 7 days pub 1 i shed not i ce and 10 days
mailed notice to all property owners within the proposed area is
required for the public hearing. At the hearing and within the
ordinance, the Council would need to make findings that the
necessary improvements will not be made if the housing improvement
area is not created and making the improvements within the area is
needed to maintain and preserve the area's housing units. Further,
the enabling ordinance will allow the City to impose a fee against
the benefiting property owners to pay for the cost of the
improvements. However, the ordinance must also specify the basis
for the imposition of the fee and the number of years it will be in
effect.
The property owners withi n the improvement area al so have veto
power over the ordinance. In other words, if 35% of the property
owners object to the ordinance after its adoption it will not take
Kirk McDonald
March 27, 1997
Page 3
effect. As a result, the effective date of the ordinance must be
at least 45 days after its adoption by the City Council. During
that 45-day interim period the property owners, after all receive
not i ce of the ord i nance and it s cont ent s wit hi n 5 days of it s
adoption, can file an objection to the ordinance with the New Hope
City Clerk. If 35% of the owners object, the ordinance is void.
If the ordinance is not vetoed, property owners can individually
object to their inclusion in the improvement area or the imposition
of fees against their property. The objection procedure works
s i mi 1 ar tot he spec i a 1 assessment cha 11 enges found in Chap. 429.
Also, the City will need to hold a second public hearing before it
can collect fees or specially assess properties for payment of the
improvement costs. Again, this works like the special assessment
procedure found in Chap. 429.
Collection of fees also may take two forms. It can be done either
by an ad valorem tax or it can be done like a special assessment to
benefitted properties. If done like an ad valorem tax, it would be
based on the net tax capacity of the property, the square footage
of the property, or some other method determined by the Council.
If it is done like a special assessment, we would need to codify
special assessment regulations and incorporate them in the
ordinance.
If an improvement area is established, the repairs would be done as
a public improvement. This may potentially require the City to act
like a general contractor for repairs on private property.
Obviously, we would be subject to the Uniform Municipal Contracting
Law for letting contracts. Further, it creates numerous liability
and warranty issues involving the completed work. I would not
consider this program unless we had extensive releases, hold
harmless and indemnification agreements with the involved property
owners. It would also allow the City to issue general obligation
bonds to finance the construction costs in lieu of using TIF funds.
Finally, this law has a sunset provision of June 30, 2001. After
said date, no housing improvement areas can be established pursuant
to Minn. Stat. 6428A.11, et al. Therefore, we do have some time to
consider this kind of funding option for the Sandpiper Cove
Development.
Some extensive work is involved to establish a procedure for
creating housing improvement areas. I have contacted the League of
Minnesota Cities to find out if other municipalities have
Kirk McDonald
March 27, 1997
Page 4
implemented a program like this under Minn. Stat. g428A.11.
Possibly, there is a model ordinance developed by the League or we
could obtain ordinances from other cities that have already adopted
this program. Before we get into this project too far, I think we
need direction from the City Council whether they would be willing
to entertain this kind of program for the Sandpiper Cove
Development or any other area within the City requiring this kind
of assistance. At any rate, I will not do anything further unless
I receive direction from you or the City Manager to proceed.
Please cont act me if you have any ot he r quest ions or comment s
regarding the content of this letter.
Very truly yours,
Steven A. Sondrall
s1 t4
Enclosure
cc: Daniel J. Donahue, City Manager (w/enc)
Jerry Gilligan, Esq. (w/enc)
3118 Snelling Avenue
Minneapolis, Minnesota 55406
Telephone: 612/721-6628
FAX: 612/721-3136
panertraft
Proposal Submitted to:
Rockford Road Owner's Assoc.
c/o Loren Blesi! Debbie Tompkins
8943 42nd Ave. No.
New Hope, lvlN
Phone:
job NameiLocalion:
Sandpiper Cove T ownhomes
8811-8963 42nd Ave. No.
New Hope, MN
Date: 8/7/96
H.m. 531-9905 Wk.
JiVe hereby submit specifications and estimates for:
Furnish and installation of vinyl replacement windows.
To include:
~ Removal of existing windows; haul away old windows and associated debris.
~ Furnish and install Traco Series 911 thermo-pane windows in existing openings (see list for
styles and quantities); All upits to be white Double-hung units, "View-safe" tempered glass,
Low-E/ Argon energy glass,
~ Installation of windows includes removal of 1Neights and installation of fiberglass insulation;
Installation of wood stops inside and out as needed; caulking of all units.
~ Furnish and install norandex aluminum cladding on ail exterior brickmolding and sills.
Cladding to have Lo-Mar coating (see siding proposal).
~ RernovaI of exjsti...l1g Patio doors; haul away old doors fuld associated debris.
FUIT'ish and install Republic vinyl thermo-pane Sliding patio doors in existing openings. ftJl units
to be white with, ''Vie\'l-spie'' tempered glass, Lm.v-E/l\rgon energy glass,
f; ~!5D per Window: $400000 - $500,,00
/IJ
Price per Sliding Door: $!,275.00- $1,400,,00
Pricing based on window sizes of
replaced at a given tirne.
Payment to be made as follows: Authorized
To be negotiated. Signature:
lill matcrizu is guarente:ed to be as sp~Jied. i\ll ~,,-ork to be completed
in a ivor.kma.:-ilike rolli-'11ler according to staJtdard p-mctire;. A.ny alt~ti(ln
or deviation u:om abovespeciik::atioI15 involving e.'(!ra costs \viII be exe.
cutM onlv upon \vritte.11 orders, and nill become an. e,."(tra chanre over
above th; estimate. o.vner to Cfu'TY fire., tornado and other n~s.~f)" and
in::n.rr'Jnce. Our workers are fully covered by \1"t ork:mnll' s Compensation
Insurance.
Jult
3118 Snelling Avenue
Minneapolis, Minnesota 55406
Telephone: 612/721-6628
FAX: 612/721-3136
Proposal Submilled 10:
Rockford Road Owner's Assoc.
cio Loren Blesi! Debbie Tompkins
8943 42nd Ave. No.
New Hope, .J\1N
Phone:
Job }lame/Location:
Sandpiper Cove Townhomes
8811-8963 42nd Ave. No.
New Hope, MN
Date: 8/7/96
Hm.531-9905 Wk.
Vie hereby submit specifications and estimates for:
Exterior renovations on fourteen multi-dwelling structures of 36 units total.
To include:
Tear off of existing siding; F&I Thermowall II insulating backer; F&I "Accord" 20' vinyl
siding with accessories; F&I Norandex aluminum cladding with Lo-Mar on all fascia
boards, F&I Lo-Mar continuous vented soffit system; F&I Norandex custom formed
aluminum cladding on all wood brick moldings of entry, patio, garage doors and windows.
All material and labor to be furnished per written specifications attached to this proposal
wpich upon written endorsement shall become a binding part of any written agreement.
Total Cost For Above Renovations
$194,400,,00
Option #1: Deduct: Tear-off of existing siding.
Option #2: Deduct: F&I 1/4" Fanfold backer inleiu of
Thennowall II insulating backer.
Option #3: Deduct : Soffit/ Fascia work.
Option #4: Deduct: Cladding of window a.nd door trim.
Option #5: Deduct: F&I Norandex 12' vinyl in lieu of Accord 20'
-$17,800.00
-$8,100.00
-$15,400.00
-$15,800.00
-$1,480.00
" 0) W),CJo
propose hereby to furnish material and labor - complete in accordance with above
specifications, for the sum of
$194,400.00
Payment to be made as follows:
10% downpayment; balance per attached specs.
All material is guarante.."'d to be- as spccHied.. All v,-ork to be completed
in a wOLlcrna..."1like manner according to standaid practices. Any alteration
or devia.tion from above specifications involving e.xtra costs ",,111 be exe-
cuted only uponwrrtten. order::;, and ",ill h;;;corne an extrd charge ov::.r
above. the cstl.rnate. O~vncr to carry fire,. tornado and other nCC;;SS:lIY and
insurance. Our workers ar~ fully covered by \V or:krn:ful'5 Compensation
Insurance
3118 Snelling Avenue
Minneapolis, Minnesota 55406
Telephone: 612/721-6628
FAX: 612/721-3136
Name of Project:
Beacon Hills Apartments
Location: Minnetonka
Owners: Presbyterian Homes
Streets: Beacon Hills Road
City: Minnetonka
Year Perfomed:
1995
State: ~ Zip:
Contact Person: Jim Beckwith
Contact Phone: 291-7088
Contact Title: Krause
Anderson Proj. C
Desc. of Work: Fmnish and install 12' REYNOLDS vinyl siding; Designer
J-channel on all window and door trim; Norandex
soffit/fascia; commercial gutter and downspouts; aluminum
frieze cladding.
Size: One 3 & 4-story bldgs. 174 units
Approx. Value: $145,000.00
Directions: One mile west of 1-494 on Excelsior Blvd. (#3)
to Beacons Hills Road (#4 ) North 1/2 block;
complex on left side.
&
3118 Snelling Avenue
Minneapolis, Minnesota 55406
Telephone: 612/721-6628
FAX: 612/721-3136
Name of Project:
Carriage House Condominiums
Location: Vadnais Heights
Year Perfomed:
1995
Owners: Carriage House Condominiums Homeowner's As~
Streets: Heritage Ct. East; Buckingham Ct.;and Greenhavel
City: Vadnais Heights State: MN Zip: 55127
,Contact Person: Jack Bujold
Contact Phone: 653-5786
Contact Title: Board ofDir./
Proj. Rep.
Desc. of Work: Tear-off existing sdg. on 3 bldgs; F&I Thermowall; F&I
Accord 19' vinyl; F&I Norandex custom fOlmed alum.
cladding on wdw. brickmoldings on 3 bldgs.; Demolish and
reconstluct 44 cedar decks.
Size: 19B1dgs. 152- tmits
Approx. Value: $340,000.00
Directions: 1-35E North to Highway 96; West to
Centerville Road; South to Greenhaven Dr.
Complex on Right.
3118 Snelling Avenue
Minneapolis, Minnesota 55406
Telephone: 612/721-6628
FAX: 612/721-3136
Name of Project:
Mayfield Seniors Apartlnents
Location: Little Canada
Owners: Presbyterian Homes Inc.
Streets: 2850 Market Place
Year Perfomed:
1994
City: Little Canada
State: ~ Zip:
Contact Person: Greg Szypulski
Contact Phone: 854-8444
Contact Title: Proj. Coord.
Borson Cas.
Desc. of Work: NEW CONSTRUCTION F&I 15 lb. felt; F&I Edco 4"
steel siding in Driftwood Gray; F &I N orandex soffit/fascia
system in White; F&I Norandex cladding and Edco siding
in White on frieze board ttim; F&I Alcoa commercial
gutters and downspouts.
Size: 3-story; 100+ unit apts.
Approx. Value: $100,000.00
Directions: 35E NOlth to Little Canada Road exit; West to
Market Place Drive; right 1/2 block; complex
on right.
3118 Snelling Avenue
Minneapolis, Minnesota 55406
Telephone: 612/721-6628
FAX: 612/721-3136
Name of Proj ect: N olihfieldlParkview Seniors Housing
Location: Northfield Year Perfomed: 1993
Owners: NorthfieldlParkview Lutheran Homes
Streets: 900 Cannon Valley Drive
City: NOlthfield State: MN Zip: 55057
Contact Phone: 559-4111
Contact Title: Proj. Sup. for
E& V Inc.
Contact Person: Phil Olson
Desc. of Work: NEW CONSTRUCTION F&I Tyvac infiltration barrier;
F&I Revere Cedarwood steel siding (color Tawny Oak);
F&I custom fOlmed Revere alum. cladding (color Tawny
Oak); F&I Revere soffit/fascia system (color Chestnut
Brown); F&I Reynolds seamless COmIll. gutters and downsJ:
Size: 3-story 100+ unit apt.
Approx. Value: $80,000.00
Directions: 35W South to 19; East on 19 to NOlthfield. 19
will bend South, go straight on gravel road. I
1/2 miles to Cedar Ave. Go 1 bIle past Cedar
Ave. to Cannon Valley Dr., tUln right.
3118 Snelling Avenue
Minneapolis, Minnesota 55406
Telephone: 612/721-6628
FAX: 612/721-3136
Name of Project:
Giannakakis Rental Property
Location: 6316 Frances Ave. So.
Owners: Dennis & Rosa Giannakakis
Streets: 6316 Frances Ave. So.
Year Perfomed:
1992
City: Edina
State: MN Zip: 55410
Contact Person: Dennis Giannakakis
Contact Title: owner
Contact Phone: 929-4836
Desc. of Work: Tear-off existing siding; Insta1112' vinyl sdg.; almn. sof/fas
system; wdw./ door trim; awnings; 1/4" dow fanfold
backer.
Size: duplex
Approx. Value :
$9,000.00
Directions: 1/2 block south of highway 62 (crosstown) on
west side of Frances Ave.
3118 Snelling Avenue
Minneapolis, Minnesota 55406
Telephone: 612/721-6628
FAX: 612/721-3136
Name of Project:
Giannakakis Rental Property
Location: 3935 49th St. West
Owners: Dennis & Rosa Giannakakis
Streets: 3935 49th St. vVest
Year Perfomed:
1994
City: Edina
State: MN Zip: 55410
Contact Person: Dennis & Rosa Giannakak Contact Title: owner
Contact Phone: 929-4836
Desc. of Work: Tear-off existing sdg.; Install Thermo Wall; ACCORD 19'
vinyl sdg.; Norandex alum. sof/ fas.;Wdw./ door trim;
Beneda alum. storm door
Size: Duplex
Approx. Value: $10,000.00
Directions: Crosstown highway to 'Frances Ave. So.~ North
to 49th St.; west to house
3118 Snelling Avenue
Minneapolis, Minnesota 55406
Telephone: 612/721-6628
FAX: 612/721-3136
Name of Project:
Hyland Courts Townhomes
Location: Bloomington
Owners: Hyland Comis Homeowner's Assoc.
Streets: 5500 Hyland Courts Dr.
City: Bloomington State: MN Zip: 55437
Year Perfomed:
1994
Contact Person: Gerold Hirtz
Contact Phone: 831- 4118
Contact Title: Board ofDir.
Proj. Laison
Desc. of Work: Furnish a installed REYNOLDS 12' vinyl sdg.; sof/fas.;
wdw patio/ entry/ garage door trim;T-Wall; misc. deck
recon- struction; wdw. and door replacements. Gutters/
downspouts.
Size: 54 Bldgs./ 190 units
Approx. Value: $740,000,00
Directions: 1-494west to Normandale Blvd.(highway 100);
South to 98th street, west to Briar Rd. Proj.
Between 98th on south, 96th on north, Briar on
east, Nesbitt on west.
3118 Snelling Avenue
Minneapolis, Minnesota 55406
Telephone: 612/721-6628
FAX: 612/721-3136
Name of Project:
Park HaInes Townhomes
Location: St. Paul
Owners: Park Homes Owner's Assoc. Inc.
Year Perfomed:
1996
Streets: 132-154 Ruth St.
City: St. Paul
State: MN Zip: 55106
Contact Phone: 735-3121
Contact Title: Assoc. Proj.
Rep.
Contact Person: Richard Barr
Desc. of Work: Tear-off existing roofs; F&I 25 yr. shingles, vents, ice
barrier. F&I Energywall; F&I Accord 19' vinyl (brown);
F&I Reynolds Sofl Fas System; F&I Reynolds custom
fmmed alum. cladding on entry,patio, garage door wood
trim; F&I .032 seamless gutters and downspouts.
Size: 2 Bldgs. 12 units
Approx. Value: $110,000.00
Directions: 1-94 east to Ruth St. exit. South 2 blocks.
Complex on left
WORK TO BE COMPLETED SPRING OF
1996
3118 Snelling Avenue
Minneapolis, Minnesota 55406
Telephone: 612/721-6628
FAX: 612/721-3136
Name of Project:
Portland Townhomes
Location: Bumsville
Owners: Portland Homeowners Association
Streets: Portland Mews; Portland Place; East 143rd Street
Year Perfomed: 1995-
City: BU111sville
State: MN Zip: 55337
Contact Person: Robert Claymore
Contact Phone: 440-5430
Contact Title: Association
President
Desc. of Work: Tear off existing siding; install Thermowall; Accord 19'
vinyl dutchlap; Norandex soffit/fascia; Norandex window
and door trim.
Size: 37 4-unit buildings; 148 units
Approx. Value: $470,000.00
Directions: 35W south to County Road 42; east to
Portland Ave.; north to POliland Mews, or
POliland Place or East 143rd Street (work to
be completed 1997). Project on east side of POl'
3118 Snelling Avenue
Minneapolis, Minnesota 55406
Telephone: 612/721 ~6628
FAX: 612/721-3136
Name of Project:
Yorkshire Green Townhomes
Location: North Branch
Owners: Yorkshire Green Townhouse Assoc. Inc.
Streets: 1211-1229 Yorkshire Greens
Year Perfomed:
1992
City: North Branch
State: MN Zip: 55056
Contact Person: Marvin Nelson
Contact Title: Assoc. Pres.
Contact Phone: 1-674-2488
Desc. of Work: Tear-Off Existing Sdg; F&1 1/4" Dow Fanfold Backer;
"Accrd" 19' 4.5" Vinyl (2bldgs. Blue wi white trim, 1 Linen
wi Brown trim); F&1 Norandex Sof! Fas System;F&1
Norandex Custom Formed Cladding On All Wdw., Entry!
Patio! Garage Door Wood Frames; F&1 .032 Seamless Gutt
Size: 3 Bldgs. - 10 llllits
Approx. Value: $60,000.00
Directions: 1-35 North to North Branch exit. call for dir.
Proposal Submitted To:
Dan Leaf
8951 42nd Ave.
New Hope
We hereby propose to furnish all materials and perform all labor necessary for the completion of
the improvements as follows:
DUPLEXES:
-Remove existing siding and replace with Journeyman vinyl siding and 318" styrofoam
insulation.
-Replace existing window sashes with Benada vinyl windows.
-Wrap window brick moldings and garage door bucks with aluminum.
-Install aluminum soffit and facia.
-Replace gutters.
-Replace patio doors with Windsor, vinyl, 6' gliders.
-Replace 6'x10' patio decks. Use existing footings. No steps.
-Replace entry decks and steps. Use existing footings and roofs.
QUADPLEXS:
-Remove existing siding and replace with Journeyman vinyl siding and 3/8" styrofoam
insulation.
-Replace existing window sashes with Benada vinyl windows.
-Wrap window brick moldings and garage door bucks with aluminum.
-Install aluminum soffit and facia.
-Replace patio doors with Windsor, vinyl, 6' gliders.
-Replace 4'x18' decks. Use existing footings. No steps.
-Replace 4'x20' decks and steps. Use existing footings.
MATERIAL SPECIFICATIONS:
Siding: Manufactured by Royal.
.042 thick.
Warranty: Lifetime, non-prorated, transferable. Labor and material.
Silicone caulking.
Windows: 7/8" insulated glass.
Fusion welded main frame and sashes.
Tilt-in sashes.
Pick resistant cam locks for added security.
Full screens.
30 year, transferable: warranty.
Benada windows are manufactured in Minneapolis.
White.
Windsor Doors: 1" tempered, insulated glass.
Fusion welded mainframe and sashes.
White.
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Proposal includes removal of all construction debri and permits.
All material is guaranteed to be as specified and the above work to be performed in accordance
with the drawings and specifications submitted.
SALE PRICE:
Duplex: Siding
Windows
Decks
Gutters
Patio doors
Permit,
. Rubbish removal
Total
$8670.00
3200.00
1945.00
495.00
3400.00
1555.00
$19265.00
Quadplex: Siding
Windows
Decks
Patio doors
Permit,
Rubbish removal
Total
$19900.00
9200.00
9690.00
3400.00
2500.00
$44690.00
Additional work required will be charged at $26.00 per man-hour plus material.
Patio doors not replaced will be credited $850.00.
Any alteration or deviation from above specifications involving extra costs will be executed only
upon 9Jders" and will become an extra charge over and above the estimate.
/:/:~/ /
Acceptance of Proposal
Date
o
Builders INC.
7401 - 42nd Ave. No.
Minneapolis, MN 55427
533-6168 Fax 533-6211
July 25, 1996
Rockford Home Owners Assoc.
Attention: Debbie Tompkins
RE: 8943-8945 42nd Ave. N.
Dear Mrs. Tompkins,
Thank you for inviting me to offer you our quote on the exterior
work required on the above property. It is my recommendation to
have the existing siding removed along with the 1 X 6 planking on
windows and corners, then use a styrofoam insulat ion under all
siding for a firm and flush substrate.
1. Remove existing siding and planking, haul away.
2. Check all lumber, repair or replace as necessary.
3. Caulk and seal all doors and windows.
4. Use a 3/8 inch styrofoam insulation under all siding.
5. Re-side complete building in a permanent solid vinyl
siding in your choice of color and profile with a life
time warranty.
6. Cover all soffit and fascia in aluminum in your choice of
color.
7. Cover all trim on doors and windows in aluminum, choice of
color.
8. Furnish permit, license, bond and lien waiver.
9. Remove all work related material on completion.
Your investment in above work would be $8,674.00.
Windows
Furnish and install 10 new vinyl replacement windows.
These windows are double insulated glass
Fusion welded frames and sash
Thickest P.V.C. walls
Lifetime warranty
30 year glass warranty
Your investment in the above windows would be $3,287.00.
RE: 8805-8811-8877-8883
42nd Ave. N, New Hope
We measured this uni t and it seems to have more windows and
openings than some of the other 4 units because of this the other
unit would have a lesser price.
Using same specification as 8943-8945.
Your total investment in this building would be $20,890.00.
The vinyl windows for this 4 unit building would be $11,152.00.
I want to thank you for considering NORTH CENTRAL BUILDERS for your
remodeling needs. If you have any questions or concerns give me a
call.
Sincerely,
Bob Norcross
INVOICE NO. 47641
STEVE SCHEFTEL CONSTRUCTION DATE August 29,1996
2365 LOUISIANA AVE. NORTH
GOLDEN VALLEY, MN 55427
(612) 593-5494 Mpls. License #05369 Mn. #200235513
CUSTOMER: Joe Dols TEL:536-0832 :
ADDRESS: 8833 - 42nd Avenue North
New Hope, MN
INSTALL VINYL SIDING, SOFFIT AND FASCIA
1. Prepare old siding for new, remove any rotten or
protruding pieces.
2. Install foam insulation.
3. Install corner, window and bottom trim.
4. Install vinyl siding.
5. Install soffit and fascia.
6. Clean up job site and haul away trash.
7. Supply permits. .
Price for 2 - Unit buildings - $ 11,350.00
Price for 4 - Unit buildings. - $ 14,350.00
Estimated By:
Estimated Job Cost:
This estimate is for completing the job as described above. It is based on
our evaluation and does not include material price increases or additional
labor and materials which may be required should unforeseen problems or
adverse weather conditions arise after the work has started. The above work
is to be performed and completed for the sum of $ 170,900.00 with payments
made to Steve Scheftel Construction only by check as follows: payment upon
completion of each building.
CUSTOMER AUTHORIZATION SIGNATURE
DATE
PROPOSAL
&=
3.16 75th Ave. North
Brooklvn Park" MN 55443
Phone: 566-2179
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MADE IN USA
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QIo All QIa mhllrn QIhrse 13resents ShaH ([orne, ~reeting:
l83hereas, Articles of Incorporation, duly signed and acknowledged under oath,
have been recorded in the office of the Secretary of State, on the --7th--
day of June , A. D. 19-11- for the incorporation of
Rockford Owners Association
under and in accordance with the provisions of the Minnesota Nonprdit Corpo~ation
Act, Minnesota Statutes, Chapter 317j
. .
Now, QIherefore, I, Joan Ander~on Growe, Secretary of State of the State of
Minnesota, by virtue of the powers and duties vested in me by law, do hereby certity
that the said
Rockford Owners Association
is a legally organized Corporction under the laws of this State.
Witness my official signature hereunto sub-
scribed and the Great Seal of the State of Minnesota
hereunto affixed this --seventh--
June
in the year of our Lord
one thousand nine hundred and seventy-seven
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BY-LAWS
OF
ROCKFORD OWNERS ASSOCIATION
ARTICLE I
Section 1. The name or this Association shall be the ROCKFORD
OwNERS ASSOCIATION ("Association"). The Associatfon is rormed pur-
suant to Chapter 317, Minnesota Statutes, known as the Minnesota
Non-Profit Corporation Act.
Section 2. The members or the Association shall be the owners
or the lots ("lots ") in Sandpiper Cove Township Developmen t, Hennepin
County, Minnesota, There shall be one member per lot. Ir there should
be more than one owner or a lot, the owners shall notify the Secretary
or the Association in writing which or the owners has been designated
as the member or the Association.
Each member or the Association shall
have the number or votes speciried in the Declaration ror his lot or
lots, When ownership or a lot is transrerred in any manner, the
transreree shall become a member or the Association upon written notice
or the transrer being given to the Secretary or the Association,
Section 3. The address or the Association shall be:
5050 Excelsior Boulevard
St, Louis Park, Minnesota
55416,
ARTICLE II.
Section 1. Place or Meeting. Meetings or the Association shall
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be held until decided otherwise by the Board or Directors, at the
address or the lot owned by the Secretary or the Association.
Section 2. Annual Meeting, An annual meeting or the Association
shall be held on the rirst Monday in April each year, ir not a legal
holiday,and ir a legal holiday, then on the next secular day rollowing,
at such hour as may be named by the Secretary in the Notice or said
meeting. The lot owners shall elect members or the Board or Directors
until the next annual meeting, and shall select rrom among themselves,
a President, a Vice President, a Secretary, an Assistant Secretary and
a Treasurer and shall transact such other business as may properly be
brought berore the meeting. Written notice or the annual meeting shall
be mailed postage prepaid, or delivered, thrity (30) days berore such
meeting to each lot owner at his address as the same appears on the
books or the Association.
Section 3. SDecial Meetings, Special meetings or the Association
ror any purpose or purposes may be called by the President at the re-
quest or any rour' lot owners. Such request shall state the purpose
or purposes ror the meeting. Written notice or special meetings or the
lot owners stating the time and place thereor shall be mailed postage
prepaid, or delivered, at least rive (5) days berore such meeting to
each lot owner at his address as it appears on the books or the Associa-
tion. The Notice shall state the purpose or the meeting. No business
shall be transacted in a special meeting or the lot owners except as
stated in the Notice or Meeting.
Section 4. Waiver or Notice. A lot owner may at any time waive
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notice or any meeting by a signed writing.
Section 5. Quorum and Adjournment. 51% or the' voting power of
the lot owners present in person or represented by proxy shall be
requisite and shall constitute a quorum at all meetings of the lot owners
for the transaction of business except as otherwise provided by law.
If, however, such percentage shall not be present or represented at any
such meeting, the lot owners entitled to vote thereat, present in
person or by proxy, shall have power to adjourn the meeting from time
to time without notice other than announcement at the meeting until the
requisite amount or voting power shall be present.
Section 6. Manner or Voting. Each lot owner shall at every meet-
ing or the Association be entitled to vote the number of the votes listed
for his lot or lots in the Declaration, either in person or by proxy.
Proxies must be in writing, signed by the owner giving the Proxy, and
filed with the Secretary or the Association one (1) day prior to the
meeting~ All elections and all questions shall be decided by a majority
of the voting power of the Association, except as otherwise provided
in the Declaration, By-Laws or by law. Cumulative voting shall not be
permitted.
Section 7. Action Taken Without a Meetinq, Any action which
might be taken at a meeting or the lot owners may be taken without a
meeting if authorized in a writing or writings signed by all or the lot
owners. Such action shall be efrective on the'date on which the last
signature is placed on such writing or writings or such earlier errective
date as is set rorth therein.
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ARTICLE III.
)
Board of Directors
Section 1. Number, Term of Office, Qualification and Selection.
The number of Directors shall be not less than three (3) nor more than
seven (7). A director shall continue in office until the next annual
meeting of the Association and until a successor is elected, or until
he shall resign and his resignation shall have become effective, or until
he shall have been removed in the manner provided herein or by law.
The Directors shall be selected from among the lot owners at the annual
meeting of the Association.
Section 2. General Powers. The property, affairs and business
of the Association shall be managed by the Board of Directors. Directors
shall serve without compensation except for reimbursement of out-of~
pocket expenses incurred in the performance of their duties. The Board
of Directors may engage the services of a manager and determine the
duties, contract period and compensation of such work.
Section 3. Resignation. A Director of the Association may re-
sign at any time by giving written notice to the Board of Directors,
such resignation to take effect at the time of receipt of such notice
or at any later date or time specified therein. Unless otherwise
specified therein, acceptance of a resignation shall not be necessary
to make it effective.
Section 4. Vacancy. A vacancy in the Board of Directors because
of resignation, death, disqualification, removal or any inability to
act shall be filled by the Board of Directors and such action shall
be valied notwithstanding the fact that the number of Directors then
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in office is less than the number specified by Section I hereof.
Section 5. Removal. Any Director may be removed at any time
with or without cause by a majority vote or the lot owners at any
special meeting or the Association. A Director shall be automatically
removed without a meeting or other action or the lot owners on the date
of closing or any sale or transrer of his lot or on the date or transfer
or possession thereor in connection with any such sale or transfer,
whichever occurs earlier.
Section 6. Regular Meeting. The regular annual meeting of the
Board of Directors shall be held without notice at the place, and
immediately rollowing the adjournment, or the annual meeting or the
Association, to transact such business as may properly come berore the
Board.
Section 7. Special Meetings or the Board or Directors. Special
meetings or the Board or Directors shall be held upon written request
of the President or of any Directors stating the purpose or purposes
thereof. Notice of such meeting shall be given by mail or telegraph
to each Director, addressed to him at his residence or usual place of
business at least three (3) days berore the day on which such meeting
is to be held.
Every such notice shall state the time, place and purpose
)
or the meeting. No business other than that stated in the notice shall
be transacted at said meeting without the unanimous consent of the
Directors.
Section 8. Quorum and Manner of Acting. Except as otherwise pro-
vided by statute, the Declaration or these By-Laws, a majority of the
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Directors in office at the time of any meeting of the Board of Directors
shall constitute a quorum for transaction of business at such meeting
and the act of a majority of the Directors present at any such meeting
in which a quorum is present shall be the act of the Board of Directors.
In the absence of a quorum, a majority of the Directors present may
adjourn the meeting from time to time without notice other than announce-
ment at the meeting until a quorum be had.
Section 9. Waiver of Notice. Notice of a special meeting may
be waived by any member of the Board of Directors in writing or by
attendance at such meeting in person or by attorney.
Section 10. Action Taken Without a Meeting~ Any action which
might be taken at a meeting of the Board of Directors may be taken with-
out a meeting if authorized in a writing or writings signed by all of
the Directors and such action shall be effective on the date on which
the last signature is placed on such writing or writings or such earlier
effective date as is set forth therein.
Section 11. . Financial Statements. The Board shall prepare or
cause to be prepared a financial statement and a statement of the income
and expenses of the Association for distribution with the notice of each
annual meeting, showing the financial affairs of the Association, in-
cluding specific reference to any assessments more than thirty (30) days
delinquent, through the end of the month of December prior to the meeting.
Any member of the Association shall have the right, upon reasonable notice
to the Treasurer, to review the accounts and financial records of the
Association. One or more members may call for an audit of the affairs
-6-
of the Association by written notice to the President. If the audit
shall disclose substantial errors in the most recent statements issued
by the Board, the Association shall bear the expense of the audit. If
no substantial error shall be established by the audit, the member or
members requesting the audit shall bear the entire expense thereof,
which shall be a lien upon their individual lots until paid.
ARTICLE IV.
Officers
Section 1. The officers of the Association shall be a President,
a Vice President, a Secretary, an Assistant Secretary and a Treasurer.
Each officer shall be selected by a majorty vote of the Board members.
One person may hold the office and perform the duties of any two of
said officers.
Each officer shall continue in office until
(a) the next annual meeting of the Board and
until a successor is elected, or
(b) he shall resign and his resignation shall
have become effective, or
(c) he shall no longer be a member of the
Association.
Vacant offices shall be filled by the Board.
Section 2. Duties of Officers. The officers shall have the
duties and responsibilities normally pertaining to such office. The
)
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President shall preside over the meetings of the Board of Directors and
of the Association of lot owners. The Vice Pr'esident shall have such
powers and perform such duties as the President or the Board of Directors
may from time to time prescribe.
In the absence of the President or in
the event of his death, inability or refusal to act, the Vice President
-7-
shall perform the duties of the President and when so acting, shall have
all the powers of and be subject to all of the restrictions upon the
President. The Secretary shall keep the minute book of the Association
wherein Resolutions shall be recorded, an& shall keep a record of the
name and mailing address of each lot owner, and the lot or lots in which
he has an interest. The Treasurer shall keep the official records and
books of account of the Association. He shall furnish upon request of
any lot owner a statement as to the current account of the lot owner
upon the assessment books of the Association, and the participation of
the lot owner in any reserve account. Such reserve account may not be
withdra,m, but may be assigned to a purchaser of the lot. Officers
shall serve without compensation except for reimbursement for out-of-
pocket expenses incurred in the performance of their duties. Admin-
istrative tasks of the officers may be performed by a managing agent
selected by the Board. The Assistance Secretary shall, in the absence
or disability of the Secretary, perform the duties and exercise the
powers of the Secretary. Such Assistant Secretary shall have such oth2r
powers and perform such other duties as the President or the Board of
Directors may from time to time prescribe.
ARTICLE V.
Administration
Section 1. Amendment of By-Laws. The By-Laws may be amended at
any annual or special meeting of the Association by a vote of 51% of
the voting power of the lot owners. Notice of the meeting and a state-
ment of the substance of the.amendment to be considered shall be given
-8-
The purchaser at foreclosure sale of a first mortgage of
record and his successors in interest shall upon expiration of the
period of redemption, hold title to the lot free and clear of any
existing lien for assessments arising subsequent to the recordation
of said first mortgage, and such purchaser and his successors in
interest shall not be personally liable for such assessments. Any
such unpaid assessments shall thereupon with no further action, become
a lien on all lots in equal shares.
ARTICLE VII
COVENAJ~TS FDR INSURAJ~CE
Sec tion 1. Main tenanc e of Insurance. Any own er of any
improved lot, by acceptance of an interest, whether or not expressed
covenants to carry, maintain and timely pay the premium or premiums
on a policy of fire, extended coverage, vandalism, and malicious
mischief with all risk endorsement insurance. Said insurance is
to cover at a minimum the entire replacement cost of the improvement
located on each such lot. Said insurance shall be in the form sat-
isfactory to the Association and shall be issued in the name of the
Association as insurance trustee for the owner, and shall provide
that losses shall be payable to the trustee and the mortgagee of
record of the lot, if any. Notwithstanding any of the above, the
Association may elect to secure a master policy which provides for
such insurance. Said master policy shall be issuedfu the name of
the Association as insurance trustee for the owners, and shall pro-
vide that losses shall be payable to the trustee and mortgagees of
record, if any.
Section 2. Association as Insurance Trustee. In the event
of des truc tion or damage by caus es covered by insuranc e referred to
above, all proceeds of said insurance cove~age shall be payable to
the Association as insurance trustee~for the owner of the damaged
lot and to the mortgagee of record of the damaged lot. Said insurance
proceeds shall be applied and administered as follows:
a. In the event of an insured loss to a lot, all insurance
proceeds paid to the trustee and mortgagee or mortgagees of record
of the damaged lot and shall be deposited in a title insurance company
acceptable to them to be held in escrow for restoration.
)
b. In the event of an insured loss to a lot, the owner of
such lot with r~spect to which the insurance loss occurs shall within
30 days after the insurance proceeds are deposited with a title insur-
ance company in accordance with paragraph a above, enter into a firm
contract with a qualified builder providing for the reconstruction
of the improvement, in substantially the same condition as existed
immediately prior to the insured loss; provided, however, that no
contract shall be entered into by such owner for an amount in excess
-9-
ARTICLE VI.
Director's and Officer's Indemnity.
Each director and officer at any time serving the Rockford Owners
Association shall be indemnified and held harmless by the Association
from all costs and expenses including attorneys' fees which may be
imposed upon orreasonably incurred by him in connection with or arising
out of the defense or settlement of any claim, action, suit or proceeding
brought against him by reason of his being or having been a director or
officer of the Association, whether or not he is a director or officer
at the time of incurring such expenses, and each such director or officer
shall be indemnified and held harmless by the Association agmnst any
judgment that may be rendered against him in such action; provided, however,
that no director or officer shall be indemnified by the Association with
respect to matters as to which he is finally adjudged in any such action,
suit or proceeding to have been guilty of willful or fraudulent conduct
detrimental to the best interests of the Association. The foregoing
right of indemnification shall not be exclusive of the other rights to
which any such director or officer may be entitled as a matter of law
and shall inure to the benefit of his heirs, executors, administrators
and personal representatives.
ARTICLE VII.
Severability
If any provision of the Declaration of Sandpiper Cove Townhouse
Development or of these By-Laws, or the application thereof in any
circumstances shall be judicially held in conflict with the Constitution
or laws of the Uhited States or of the State of Minnesota, then the
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or laws shall be deemed controlling, but the validity
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the DE?Clarat1on apcL By-Laws or the
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provision in issue.to other circumstances shall
applica Hon
not be affected
th~~eby .
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~ These By-Laws have been adopted by the undersigned this 10th
....
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day of April , 1978, and are to be annexed to and filed with
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t"e Declaration for Sandpiper Cove
No. 1005 Certilie.lte of Aelrnowied ent B Co one
Gleason)
:>ons ~[i"tL
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County ol...........~.~.~.~~.~......................................... ~ &8. On, thia.....1Q.t.h..day ol..............~P.~.~.~................., 19......?~,
be/we me, a..................N.9.:t~J~y...~.Ql.~s:.............................................within, aTUi. for said Coun,ty person-ally appeared
.............W:m..... L.....G.l~!;l,.s.o.n..............................................................anrj,............................~.9.!?.~E.!....'!.........~.~.~~.~.?~.........................................
to me person-ally known" who, bein~ each by me duly 8Worn..........~.~.<;:.!}.........did say that they are reapedively
tM................................... ...................................... .Preside n,t aTUi. the.........................?.e;~E.~.~::.~.Y.. ....... ..... ........................ ...... ..... ............. ......0 f
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and that said in.strument WM si~ned and sealed in beha~f'Of.~.. ~,~1'fP,O.ra..r.wn, by authority of its Board
o/..........Di:c.ectoI.s................................aTUi. said........................... .......wjp.t:...;.I;,:...r:..m:..~~i:~.}............................................................and
Robert J. Gleason .': .:..:-:'.: '.~('. (.) :. .
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ROCKfORD OWNERS ASSOCIATION
"Sandpiper Cove"
STANDARDS & GUIDELINES
(UPDATED)
10/92
Standards and guidelines have been prepared and updated by your
Association to protect the privileges provided to you for townhouse
living.
ASSOCIATION DURS
Dues are payable on the first of each month. A late charge will be
added to unpaid dues and turned over to our attorney for collection.
Attorney fees will also be paid by the delinquent owner. A coupon book
will be provided by our Property Management office to mail payment into
their office.
RXTRRIOR INSURANCE
Insurance premium covering the exterior of your townhouse is payable on .
the first of each month along with payment of your Association dues.
Use the same coupon as you will for your Association dues and mail
together to the Property Management office.
~OMMON GROUNDS
Guest parking areas are not for use by townhouse owners. Owners are not
to park extra cars, trucks, boats, recreational vehicles, cars for sale,
etc., in guest parking areas. Cars should be parked inside your garage
or in your driveway outside garage. Vehicles improperly parked will be
towed at owners expense. No cars are allowed on grass areas. Planting
of flowers is allowed around your townhouse or in containers meant for
outdoor planting only (no old buckets, paint containers will be accept-
able). Wading pools, if used during da1, must be removed each evening
after use.
LAWN MAINTENANCE
The lawn service is responsible for Spring cleanup and Fall cleanup and
cutting grass areas each week. If it rains on the designated day to cut
the grass, they will return as soon as possible to complete job. They
also fertilize and power rake Spring and Fall. Owners are responsible
for watering grass, shrubs and trees around their townhouse.
.~
SNOW MAlNTENANCE~
The snow removal service will plow snow as early as possible in morning,
during day or evening. If there is a heavy snowfall, they will plow a
path around our main driveway out to 42nd Avenue and come back to finish
the job as soon as possible. Vehicles should be moved to help the snow
service do a better job of cleaning area.
DOGS & OTHER PETS
Dogs must be leashed. Owners must clean up after their dog and other
pets. If grass area is damaged around your townhouse by your pet, owner
is responsible for replacing sod. Contact Animal Control if there is
a problem with a dog or other pet in the Association. No raising of
birds, rabbits, etc., is allowed outside the townhouses. They will be
removed at expense of owner.
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TRASH & RECYCLING
Trash is picked up on Monday morning. Trash cans/bags should be put
outside early Monday morning. Recycling is on Tuesday and, therefore,
your recycling bin should be put outside early Tuesday morning. Both
trash cans and recycling bins should be put back inside after pickup
the same day.
MISCELLANEOUS
Do not barbecue on your deck or balcony, as this is a fire hazard. Do
your grilling on ground level approximately six (6) feet from your
townhouse.
No golfing/softball or any ball-type games sho~ld be played in our yard
or driveway areas.
Oil drained from cars, paint/thinners, etc., must not be emptied into
street drains or dumped onto common ground areas.
"For Sale" signs should not be left outside townhouses. "Open House"
signs should be used only on open house day. At time of a townhouse
sale, pass the Association's "guidelines" on to your realtor and/or
buyer.
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46110686
14,908JW
IS37.27
SECOND AMENDMENT TO DECLARATION OF
COVENANTS, CONDITIONS AND RESTRICTIONS
RECITALS:
A. Gleason Co. Realtors, Inc., a Minnesota
corporation ("Gleason") placed certain covenants, conditions
and restrictions on the real property ("Property") described
as follows:
Lots 1 through 59, inclusive, Block 1, Sandpiper
Cove, Hennepin County, Minnesota.
B. Said covenants, conditions and restrictions were
recorded against the Property in that Declaration of
Covenants, Conditions and Restrictions, dated April 10,
1978, recorded July 18, 1978, as Document No. 439-5260
("Declaration") in the Hennepin County Recorder's Office.
C. The Declaration was amended by that First
Amendment to Declaration of Covenants, Conditions and
Restrictions, effective February 20, 1986, recorded June 25,
1986, as Document No. 512-3818 ("First Amendment") in the
Hennepin County Recorder's Office.
D. Rockford Owners Association ("Association") was
incornorated to enforce the Declaration and all amendments
and Gieason assigned to the Association all its rights in
the Declaration.
E. The members of the Association ("Members") have
the right to amend the Declaration and purchase additional
property and subject it to the Declaration.
NOW, THEREFORE, the undersigned state as follows:
1. They acknowledge that they are all Members of the
Association entitled to vote at a meeting of the Association
called to amend the Declaration and thsy acknowledge that
they all received the proper notice required to amend the
Declaration.
2. They consent to the purchase for valuable
consideration by the Association of the following property
( " Additional Property"):
Outlot A, Sandpiper Cove 2nd Addition, Hennepin
County, Minnesota.
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ARTla..ES OF INCORPORATION
OF
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ROCKFORD OWNERS ASSOCIATION
We, the undersigned, being ox xull age, xor the purpose ox
xorming a non-proxit corporation under and pursuant to the pro~
visions of Chapter 317, Minnesota Statutes, known as the Minnesota
Non-Proxit Corporation Act, and laws amendatory thereof and supple-
-
mentary thereto, do hereby associate ourselves as a bOdy corporate
and adopt these Articles of Incorporation.
ARTICLE I.
The name ox this corporation shall be ROCKFORD OWNERS ASSOCIATiON.
ARTIa..E II.
The registered ofxice of the corporation shall be 5050 Excelsior
Boulevard, St. Louis Park, County of Hennepin, State ox Minnesota.
ARTICLE III.
The purposes and objects of the Association are to promote the
health, safety and welxare of the members ox the Association and on
a non-profit basis to administer the operation and management of
SANDPIPER COVE TOWNHOUSE DEVELOPMENT, a Planned Unit Development
project to be established upon the xollowing described property
situate lying and being in the City of New Hope, County of Hennepin,
State of Minnesota, described as xollows, to-wit:
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The East 750.5 reet or the Northwest 1/4 lying South' or the
center line or the Rockford Road, so called, Section 18,
Township 118 North, Range 21, West or the 5th Principal
Meridian, EXCEPT that part or the East 1/2 or the Northwest
1/4 or Section 18, Township 118, Range 21, described as
rollows: Beginning at the Southeast corner thereor; thence
West along South Line of said Northwest 1/4 a distance of
750.5 feet; thence North and parallel with the East Line
of said Northwest 1/4, a distance of 1022.0 feet to a point
which is 500.0 feet South of the center line of Rockford Road
as measured at right angles; thence Southeasterly in a straight
line and parallel with said center line to a point in said East
line, a distance of 1001.5 feet North of the point of begin-
ning; thence South to the point of beginning; EXCEPT all that
land which lies Northerly of a line drawn parallel with and
distant 45.0 feet Southerly of said center line of Rockford
Road (County Sta~e Aid Hig~way No.9)
and to undertake the performance of the acts and duties incident to
the administration of the operation and management -of said Associ:a-'
tion in accordance with its terms, provisions, conditions and
authorizations contained in these Articles of Incorporation and which
may be contained in the Declaration of Covenants, Conditions and Re-
strictions which will be in the Office of the Register of Deeds,
Hennepin County, Minnesota, at the time said property, and the improve-
ments now or hereafter situate thereon, are snbmitted to Planned Unit
Development ownership; and to own, operate, lease, sell, trade and
otherwise deal with such property whether real or personal, as may be
necessary or convenient in the administration of SANDPIPER COVE TOWNHOUSE
)
DEVELOPMENT.
In the furtherance of the foregoing purposes, the Association
shall have the power and authority to engage in any and all law:ful
activities that may be reasonably necessary for the accomplishment
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-"'-:-L~ .
or any or the roregoing purposes, and to do and exercise all other
powers and authority now or hereafter conrerr~ upon non-prorit
corporations under the laws or the State or Minnesota, including
the following powers:
a) To operate and function exclusively as a non-
profit corporation, with all or the rights,
powers, duties and privileges accorded by
Chapter 317, Minnesota Statutes;
b) To own, acquire, build, operate and maintain on
grounds conveyed to it common areas and facilities,
including but not limited to playgrounds, swimming
pools, tennis courts, streets, walkways, parking
areas, buildings, structures and personal pro-
perties incidental thereto, hereinafter referred
to as the "Common Areas and Facilities n,
c) To provide garbage and trash collection;
d) To supplement municipal services as deemed
necessary or desirable from time to time;
e) To erect buildings and other structures or
improvements in the Common Areas of Facilities;
f) To acquire, install, maintain, improve and
otherwise deal with shrubs, plants, vines, flowers,
trees and all other things horticultural and
arboreal in such Common Areas and to maintain,
repair, replace or improve same;
g) To provide necessary maintenance services to the
SANDPIPER COVE Development Area.
)
h) To acquire, own, hold, maintain, improve, lease,
grant andobtain easements, sell, mortgage, and
otherwise deal with real and personal property
in such Common Areas or Facilities and additions
thereto;
i) To fix assessments or dues to be levied against
'lots and lot owners and to collect said
assessments or dues;
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j) To enforce any and all covenants, restrictions,
agreements, rule and regulations applicable to
the SANDPIPER roVE Development Area as set forth
in the Declaration and any related documents;
k) To pay all real estate taxes, and other levies or
charges, if any, on the Common Areas or Facilities;
1) To engage in any activities and business in such
Common Areas or Facilities which can be appropriately
and legally carried on therein for the general
benef'it of' the owners of' Lots
within the Sandpiper Cove Development Area;
m) To do and perf'orm each and every thing or act,
necessary, suitable or proper in the opinion of'
the Board of' Directors f'or the accomplishment of'
any of' the purposes herein enumerated, or which
shall ~t any time appear conducive to or expedient
for the protection or benefit of' the corporation,
and to do and perf'orm any and all acts required
of' it by the Declaration or any other document
related to the Sandpiper Cove Development Area, or,
permitted or required of' it by the laws of' the-
State of Minnesota.
Nothing in this paragraph contained shall be deemed in any
way to limit or impede any powers or duties, rights or responsibilities
conf'erred on the corporation by the laws of' the State of' Minnesota.
ARTI a..E IV.
1. This corporation shall not aff'ord pecuniary gain,
incidentally or otherwise, to its members. No part of' the net
earnings of' the corporation shall inure to the benef'it of' any
member, director, of'f'icer of' the corporation, or to any private
)
individual, except that reasonable compensation may be pard f'or
services rendered to or f'or the corporation ef'f'ecting one or more
of' its corporate purposes.
2. No member, director, of'f'icer of' the corporation, or
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any private indi~idual shall be entitled to share in the distri-
bution of any of the corporate assets upon di~solution of the
corporation or otherwise.
)
ARTICLE V.
The duration of this corpo'ration shall be perpetual.
ARTICLE VI.
The names and addresses of the incorporators of this
corporation are as follows:
William L. Gleason
9611 Oak Ridge Trail
Minnetonka, Minnesota 55343
Robert J. Gleason
4819 Dupont Avenue North
Minneapolis, Minnesota 55412
'Judith A. Gleason
9611 Oak Ridge Trail
Minnetonka, Minnesota 55343
ARTICLE VII.
The membership of this Association shall be the owners of
the lots in SANDPIPER COVE TOWNHOUSE DEVELOPMENT, Hennepin County,
Minnesota.
There shall be one member per lot.
If there should be
more than one owner of a lot, the owners shall notify the Secretary
of the Association in writing which of the owners has been desig-
nated as the member of the Association.
Each member of the Associa-
tion shall have the number of votes specified in the Declaration
for his lot or lots. When ownership of a lot is transfe~red in any
manner, the transferee shall become a member of the Association upon
written notice of the transfer being given to the Secretary of the
Association.
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ARTICLE VIII.
The management or this Association shall be vested in a Board or
Directors consisting or such number or directors (but not less than three)
"! as shall be determined by the Lot. Owners at each annual meeting or the
Association. The Directors shall be selected from among the Lot Owners
by a majority vote of all members then constituting the Association, at
the annual meeting of the Association. The first Board of Directors of
this Association shall consist of three persons whose names and addresses
are:
William L. Gleason
9611 Oak Ridge Trail
Minnetonka, 'Minnesota 55343
Robert J. Gleason
4819 Dupont Avenue North
Minneapolis, Minnesota 55412
Judith A. Gleason
9611 Oak Ridge Trail
Minnetonka, Minnesota 55343
The term in office of each member or the Board of Directors of this
Association shall be as provided in the By-Laws. The first Board of Di-
rectors shall continue in office until the first meeting of the Lot Owners
or their successors are duly elected and qualified.
ARTICLE IX.
The members or this corporation shall not be liable for corporate
obligations except as provided for andauthorized under the Declaration
of Covenants, Conditions, Restrictions and Easements for Sandpiper Gove
)
Townhouse Development (and related documents) and applicable to the
Sandpiper Cove Development Area duly recorded in the office of the Register
of Deeds of Hennepin County, Minnesota.
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ART I a...E X.
The association shall have no capital stock.
Upon dissolution or this Association all or the assets and
ARTIa...E XI.
property or the Association shall after payment or its just debts
and obligations, be distributed in a manner consistent with the
stated purposes or this Association as determined by a majority
vote or the members or this Association.
ARTICLE XII.
These Articles may be amended in accordance with Minnesota
IN WITNESS WHEREOF, we have hereunto executed these Ar~ic~es
day of ~ . 1977.
~~,;,~~~~
WILLIAM L. GL ON
law.
or
In
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ROBERT. EASON .
'/
STATE OF MINNESOTA) sSG
COlliTY OF HENNEPIN )
BE IT REMEMBERED that on this 25th day or May, 1977, berore the under-
signed, a Notary Public in and ror the County or Hennepin and State or
Minnesota, personally appeared WILLIA~ L. GLEASON, ROBERT J. GLEASON and
JUDITH A. GLEASON to me known to be the persons described in and who
executed the roregoing Articles or Incorporation, and who acknowledged
the execution or ~h.e."~~me to be tbeir free and V01un;eaI iet and deed,
ror the purpos~.~.~~~t~~.r~"e.:fortb' L\~ -
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_'~ ":..::~. \'~'~!;"~/-: Notary Public, Hennepin County, Minn.
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\';'i.<:'~,.':':-':.::>::"lv/ - - y comluss~on exp~res Aug.16,1979
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STATE OF MINNESOTA
DEPARTMENT OF ST.l'.TE
I hereby cerU1y that t~1C witiin
instrument was til~d for rcco:. in this
/':r i
office on the I doy of
A. D. 19-7-2-. at ;7 o'cf< K
and was duly recofd~d in Beok I ~
of Incorporations, on page t::If tPJ>
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SANDPIPER COVE
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STANDA-ltJS AND GUIDELINES
A set of rules and guidelines prepared by your Association
to protect the privileges provided you by Townhome Living.
ASSOCIATICN D~~S
Dues are payable on the first of each month. An interest charge will
be added to unpaid dues and turned over to our at~orney for collection.
Attorney fees will also be paid by the delinquent party.
,
Cm~.mI,: GROUNDS
Guest parking areas are not for use by to~~ouse residents. Residents
are not to park extra cars, trucks, boats, recreational vehicles, cars
for sale, etc. ir. Guest Par~ing areas or along drivewaj.s other than
the apron area of the Tc~~ouse.
Vehicles improperly parked will be towed at ow~ers expense.
Remember the common grounds belong to all residents together. No
cars are allowed on grassy areas, planting is allowed in containers ,
meant to be used for outdoor planting only, no old buckets, paint containers,
will be acceptable. wading pools must be taken off the grass each evening
after use. Please contact a member of the Board of Ir-rectors with any
problem concerning use of Co~~on Grounds.
DOGS AND OTP~ PETS
Dogs must be leashed. Ow~ers must clean up after their dogs ~~d are
responsible for picking up their dogs droppings. If you have a problem
~;i tr, a C.C[, CO:itc:ct the city anir.:a1 control and t:-le C.Of:' \0::;'11 be tagre:::.
.:-;.;:;ers arc lia":le for da:::c.ge done by their pets. ~;o raising of birds,
rabbj ts, etc. is a110....ed outside the tm..mhouses and will be removed at
the expense of the owner.
GAP.EAG E
Garbage should be put out on Wednesday mornings. Garbage must not be
put out early because it will attract animals. G~rbage is to be placeJ
in cam cr plastic t-a~z ,.:~icr. are tied sEcurely.
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"?or S~lE-l: s':'[:ns must riot be It;.t o",ltsid~ to",.'":01..;st::s. "0;,€.l". }-;oa5~" s:..gns
may be used the cay of the opEn house only.
Oil drained from cars, paint thinners, etc. must not le emptied into
street drains or dumped onto common. ground areas.
Any owner wishing to do planting around their townhome should contact
a member of the landscapE control comrni t tee 0 .'
43952GO
DECLARATION OF COVENANTS,
CONDITIONS ~~D RESTRICTIONS
THIS DECLARATION, made this 10th day of ----!\..pril
1978, by Gleason Co. Realtors, Inc., a Minnesota Corporation
called Developer),
,
(hereinafter
WITNESSETH:
WHEREAS, Developer is the owner of the real property.des-
cribed in Article II of this Declaration, and desires to create thereon
a residentail community with perManent parks, playgrounds, open spaces
and other common facilities for the benefit of said community, and
WHEREAS, Developer has caused to be incorporated Rockford
Owners Association under the laws of the State of r-linnesota as a non-
profit corporation, to which shall be assigned the powers and duties of
maintaining and administereing the common areas and facilities and
aaministering and enforcing the covenants and restrictions and collect-
ing and disbursing the assessments and charges hereinafter created,
NOW, THEREFORE, the Developer hereby declares that the real
property described in Article II and such additions hereto as may
hereafter be made pursuant to Article II hereof is, and shall be held,
transferred, sold, conveyed and occupied, subject to the covenants,
restrictions, easements, charges and liens hereinafter set forth.
ARTICLE I
DEFIN ITIONS
Section 1. The following words, when used in this Declaration,
or any supplemental Declaration (unless the context shall prohibit)
shall have the following meanings:
a. Association shall refer to Rockford Owners Association.
b. Common areas shall refer to Lot 1, Block 1, Sandpiper
Cove according to the recorded plat thereof.
c. Lot shall refer to any lot together with the improvements
thereon except common areas.
d. Owner shall refer to holder of the fee simple absolute,
contract vendee, life tenant or lessee under a lease having a term of
more than three years.
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e. Member shall refer to a member of the Association as
provided in Article III, Section 1 hereof.
f. Developer shall refer to Gleason Co. Realtors, Inc.,
its successors and assigns, if such successors or assigns should acquire
more than one undeveloped lot from Gleason Co. Realtors, Inc. for the
purpose of development.
g. Recreational facilities shall refer to structures, build-
ings and personal property, whether attached or detached from the common
areas, acquired by the Association for the use and enjoyment of owners
~ncluding but not limited to tennis courts, swimming pools, golf course,
~, ~golf putting green, greenhouse, and structures located upon the common
D ~ areas.
~~ h. Capital improvement shall refer to any construction of,
~ reconstruction of,substantial alteration of, substantial repair of,
or substantial addition to the physical amenities on the common areas,
except that installed or constructed by the Developer at its expense
and except work performed by governmental bodies.
*
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i. Mortgage shall mean and refer to any mortgage of record
or other security instrument by which a lot or any part thereof is
encumber ed.
j. Mortgagee shall mean and refer to any person named as
mortgagee under any such mortgage or any successors with an interest
of such person under such mortgage.
ARTICLE II
PROPERTY SUBJECT TO THIS DECLARATION;
ADDITIONS THEREIO _
Section 1. Existing Property. The real property which is
and shall be held, transferred, sold, conveyed and occupied subject
to this Declaration is located in the City of New Hope, County of Hennepin
and State of Minnesota, and is more particularly described as follows:
Lots 1 through 59, Block 1, Sandpiper Cove, according
to the recorded plat thereof,
all of which real property shall hereinafter be referred to as Existing
Property.
Section 2 . Additions to Existing Property . Additional lands
may become subject to this Declaration in the following manner:
a. Additions in accord with a General Plan of Development.
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The Developer, its successors and assigns, shall have the
right to bring within the plan of this Declaration property located in
Section 18, Township 118 North, Range 21, Hennepin County, Minnesota.
Such General Plan shall not bind the Developer to make the proposed
additions or to adhere to the plan in any subsequent development of
said land.
The additions authorized under this, and the succeeding sub-
section, shall be made by the filing of record a Supplementary Declaration
of Covenants and Restrictions with respect to the additional property
which shall extend the plan of the coven~nts and restrictions of this
Declaration to such property.
Such Supplementary Declaration shall contain such compl-
mentary additions and modifications of the covenants and restrictions
contained in this Declaration as may be necessary to reflect the different
character, if any, of the added properties and as are not inconsistent
with the plan of this Declaration. In no event, however, shall such
Supplementary Declaration revoke, modify or add to the covenants established
by this Declaration within the Existing Property.
ARTIQ..E II I
MEMBERSHIP AND VOTING RIGHTS
IN THE ASSOCIATION
Section 1. Each owner of a lot which is subject to as~essment
by the Association shall be a member of said Association. Membership
shall be appurtenant to and may not be separated from ownership of such
lot.
Section 2. The Association shall have two (2) classes of
voting member s:
CLASS A. Class A shall be all owners
of one or more lots, except Developer. Each Class A
member shall be entitled to one vote for each lot
owned by him. When more than one person owns any lot,
all such persons shall be members. The vote for
each lot shall be exercised as they among themselves
determine, but in no event shall more than one vote
be cast with respect to any lot.
CLASS B. Class B member(s) shall be the.
Developer and shall be
-3-
en ti"il ed to thr ee (3) votes for each lot owned. The
Class B membership shall cease and be converted to
Class A membership on the happening of either of the
following events:
(1) When total votes outstanding in the
Class A membership equals the total
vote outstanding in the Class B
membership; or
(2) December 31, 1980.
From and after the happening of either of these events, whichever Occurs
first, the Class B member(s) shall be deemed to be Class A members(s),
entitled to one (1) vote for each lot owned (as provided for Class A members
in which it holds the interest required for membership under Section 1 of
this Article).
ARTICLE IV
PROPERTY RIGHTS IN THE COMMON AREAS
Section 1. Members Easement of Enjoyment. Every member
shall have the following nonexlusive appurtenant easements:
a. Ingress and egress.
b. An utility easement, an easement for water and sewer.
c. Parking privileges.
d. Right of overhang and encroachment of improvements on
a lot which are not inconsistent with the use of the common areas by
oth er members.
e. Right and easem ent of enjoyment.
Section 2. Title and Improvements to Common Areas. The
Developer shall convey and record marketable title to the cornmon areas
to the Association prior to the conveyance of a fee title to any lot.
Developer covenants and agrees with the Association that it
will make and pay for all improvements as set forth in the plans and
specifications on file with the Association and delivery of the Deed
shall not constitute release of Developer from the obligation to perform
such obligations. Developer and the Association shall formulate and
reduce to writing a procedure for acceptance by the Association of the
work to be performed pursuant to said plans and specifications. The
Association shall file in the office of the Register of Deeds a release
of the Developer upon Developer having fulfilled its obligations to
improve the common areas. ',' Until the Developer has completed the work
-4-
as set forth in s?id plans and specifications, Developer shall have
the right to enter upon the common areas for the purpose of completing
such work.
Section 3. Exten t .9f Members Eas ern en ts. Th e rights and
easements of enjoyment created hereby and the title of the Association
to the common areas shall be subject to the following:
a. The right of the Assocation, in accordance with its
Articles and Bylaws, to borrow money for capital improvements on the
common areas, and in aid thereof to mortgage the common areas and the
rights of such mortgagee in the common areas shall be subordinate to
the rights of the members hereunder. No indebtedness authorized by
this subsection shall exceed twice the sum of the annual assessment
levied or permitted to be levied against all lots.
b. The right of the Association to take such steps as are
reasonably necessary to protect the common areas against foreclosure.
c. The right of the Association, as provided in its Articles
and Bylaws, to suspend the enjoyment rights of any member for any period
during which any assessment remains unpaid, and to suspend the said
enjoyment rights for any period not to exceed sixty (60) days and to
impose a fine not exceed Five Dollars ($5.00) for each infraction of its
published rules and regulations; provided, however, that nothing con-
tained in this paragraph 3c shall be deemed to deny an owner easement
for access and utility purposes.
d. The right of the Association to charge reasonable admission
and other fees for the use of the common areas.
e. The right of the owner of each lot to an exclusive ease-
V' ment on the common areas to areas occupied by fireplaces, roof overhangs,
air conditioning compressors, flower boxes, decks, balconies, and
other appurtenances which are part of the original construction of
any improvement or which are added pursuant to. theprovisions of Article
IX hereof.
f. The right of individual members to the use of parking
spaces as provided in Article V. hereof.
Section 4. Delegation of Use. Any owner may delegate,' in
accord with the Bylaws, his right of enjoyment to the common areas
and facilities to his tenants who reside on the property and to members
of his family and his guests.
)
Section 5. Taxes and Special Assessments on Common Areas.
The association shall have the right, power and authority to collect such
levies as part of the annual assessment, if such taxes and special assess-
ments are not collected by the governmental. body from the owners or paid
by the owners to the governmental body when the same is due and payable.
-5-
Section 6. Use of the Common Areas. The common areas shall
be used strictly in accordance with the easernents granted thereon.
Except as herein provided, no owner shall obstruct or interfere whatever
with the rights and privileges of other owners in the common areas and
nothing shall be plated, altered, constructed upon or removed by an
owner from the common areas, except by prior written consent of the
Association. If an owner shall violate this section, the Association
shall have the right to restore the common areas to its prior condition
and assess the cost thereof against the owner who violates this section
and such cost shall become a lien upon the lot of such owner, which
shall become due and payable upon demand. The Association shall have
the same right and powers to collect the cost of such restoration as
provided in Article VI for the collection of delinquent annual assess-
ments. If an owner interferes with the rights and privileges of another
owner in the use of the common areas, except as herein provided, the
Association or the owner may commence an action to enjoin such interfer-
ence and the prevailing party shall be entitled to recover such reasonable
attorneys' fees as the court may allow together with all necessary costs
and disbursements incurred in connection therewith.
ARTICLE V
RIGHTS AND OBLIGATIONS OF THE ASSOCIATION
Section 1. Common Areas. The Association, subject to the
rights of the owners set forth in this Declaration, shall be responsible
for the exclusive management and control of the common areas and all
improvements thereon (including furnishings and equipment related thereto)
and shall keep the same in good, clean, attractive and sanitary condition,.
order and repair. The Association shall be responsible for the maintenanCI
and repair of exterior surfaces of all buildings in Sandpiper Cove Town-
house Development, inClUding, without limitation, the painting of the
same as often as necessary, the replacement of trim and caulking, the
maintenance and repair. of roofs, gutters, downspouts and overhangs; (
the maintenance and repair of all common areas. . The Association shall i
have the right to enter upon the lots for the purpose of maintaining i
the common plumbing, sewer and utility lines. ~
Section 2. Services. The Association may obtain and pay
for the services of any person or entity to manage its affairs, or
any part thereof, to the extent it deems advisable, as well as such
other personnel as the Association shall determine to be necessary or
desirable for the proper operation of Sandpiper Cove Townhouse Develop-
ment whether such personnel are furnished or employed directly by the
Association or by any person or entity with whom or which it contracts.
The Association may obtain and pay for legal and accounting services
necessary or desirable in connection with the operation of Sandpiper
Cove Townhouse Development or the enforcement of this Declaration.
The Association may arrange with. others to furnish water, trash collection,
sewer service and other common services to each lot.
)
-6-
Section 3. Personal Property for Common Use. The Association
may acquire and hold for the use of all of the members tangible and
intangible personal property and may dispose of the same by sale or
otherwise. Such beneficial interest shall not be transferable except
with the transfer of a lot. A transfer of a lot shall transfer to the
transferee own ership of th e transferor's ben eficial in terest in such
property in accordance with the purpose for which it is intended, with-
out hindering or encroaching upon the lawful rights of other members.
The transfer of title to a lot pursuant to foreclosure shall entitle
the purchaser to the beneficial interest in such personal property.
Section 4. Rules and Regulations. The Association may make
reasonable rules and regulations governing the use of the lots and of
the common areas, which rules and regulations shall be consistent with
the rights and duties established in this Declaration.
Section 5. The Association shall maintain upon the common
areas vehicle parking spaces conveniently located for use of the owners,
members of his family, tenants and their guests. No one shall use these
parking spaces for parking or storage of boats, snowmobiles, trailers
or camping vehicles. The Association may from time to time establish
additional rules and regulations concerning the use of these parking
spaces and may ~ause to be towed from the common areas improperly parked
vehicles at the owner's expense.
ARTICLE VI
ASS ESSMENTS
Assessments against the members shall be levied by a majori ty
vote of the Board of Directors of the Association and paid by the
members to the Association in accordance with the following provisions:
Section 1. 'Both annual and special ass essmen ts shall be .
fixed at a uniform rate for all lots.
Section 2. Any assessment for alterations or additions to
improvements of the common areas involving an expenditure of $1,000.00
or more shall first be approved by a two-thirds vote at a special meet-
ing called for such purpose.
Section 3. Each member shall be liable for his share of
) common expenses, and any common surplus shall be allocated to each lot.
Section 4. Annual assessments shall be a lien upon each lot
on January 1 of the year following the levy. Special assessments shall
be a lien on the 1st day of the month following the levy.
I
/
Annual assessments for common expenses, shall be made for
the calendar year annually in advance on or before the second Monday
-7-
in December of the year preceding that for which the assessments are
made, and special assessments at such other additional times as in
the judgment of the Board of Directors, additional common expenses
assessments are required for the proper management, maintenance and
operation of the common areas. Such annual assessments shall be due
and payable in twelve equal monthly installments commencing on the
1st day of January and the 1st day of each and every month thereafter.
Special assessment~ shall be due and payable as determined by the
Board of Directors. If an annual assessment is not made, there shall
be an assessment in the amount of the last prior'annual assessment
which shall be due and payable as above set forth.
Section 5. The assessments against all lots shall be set
forth upon a roll of the lots which shall be available in the office
of the Association for inspection at all reasonable times by members
of their duly authorized representatives. Such roll shall ~ndicate
for each lot the name and address of the members, the assessments for
all purposes and the amounts of all assessments paid and unpaid. A
certificate made by the Association as to the status of a member's
ass essmen t accoun t shall limi t th e liabili ty of any person for whom
such certificate if made. The Association shall issue such certifi-
cates to such persons as a member may authorize in writing.
Section 6. Assessments and installments thereof paid on ,
or before ten (10) days after the date when due shall not bear interest,
but all sums not paid on or before ten (10) days after the date when
due shall bear interest at the rate of eight percent (8%) per annum
from the date when due until paid. All payments upon account shall be
applied first to interest and then to the assessment payment first due.
All interest collected shall be credited to the common expense account.
Section 7. No member may exernpt himself from liability for
his contribution towards the common expenses by waiver of the use or
enjoyment of any of the common areas and facilities or by the abandon-
men t of his lot.
Section 8. All sums assessed by the Association for common
expenses shall constitute a lien on each lot on the dates hereinbefore
specified which shall be prior to all other liens except only:
)
a. Tax liens and liens for special assessments in favor of
any taxing and assessing unit, and
)
b. All sums unpaid on any first mortgage recorded prior to
the date the sums assessed by the Association become a,:li~~). Such lien
may be foreclosed by action in like manner as a foreclosure by action
of a mOLtgage of real property. The Association shall have the power
to bid in at foreclosure sale, and to hold, lease, mortgage and convey
the lot so acquired. An action to recover a money judgment for unpaid
common expenses may be brought.
-8-
)
)
.J
~~)
Section 5. Garages. Upon purchase of a lot, each Unit owner
shall have exclusive use of the garage attached ,to or enclosed within
each Unit.
-9-
of the insurance proceeds then held by the title insurance company
until additional funds are deposited in escrow as above provided by
such owner sufficient to cover all construction as determined by the
title insurance company. Said reconstruction shall be commenced and
completed with due diligence and in no event shall said work be com-
pleted later than 180 days after said insurance proceeds are deposited
in escrow as aforesaid. The Association and mortgagee or record of
the lot affecte? shall have the right, but no the obligation, to
deposit such additional funds in excess of insurance proceeds as may
be required to permit construction as herein provided.
c. In the event such owner fails to enter into a contract as
provided in paragraph b above, for the reconstruction of the improve-
ment as provided above; or in the event that reconstruction is not
commenced or completed as provided above, then the trustee with consent
of the mortgagee of record, or the mortgagee of record with the consent
of the trustee shall have the right, but not the obligation to enter
into those contracts which it deems necessary to complete said re-
construction of the improvement on the lot, and the trustee or mortgagee
shall have the right to have said insurance proceeds applied in satis-
faction of any obligations incurred pursuant to said contract, without
liability of any kind to the o~~er. The Association or the mortgagee
may employ any bonded party or parties as its agent in exercising
those functions given to it in this Section 2. The Association or
the mortgagee shall be empowered to pay said agent a reasonable fee
for the services rendered by said agent and collect said charge from
the owner, and in the same manner as that which is provided in Section
4, below, for the collection of an insurance premium paid by the
Association.
d. Disbursement of funds on deposit pursuant to paragraph a
above, for contracts for reconstruction entered into under paragraphs
band c above, shall be made by the title insurance company selected
as hereinabove provided, subject to the following:
(1) Article IX of these covenants entitled "Architectural
Control Committee" shall apply to all said reconstruction.
(2) Receipt by the title insurance company of written
consent of any party holding a lien or encumbrance on said lot.
(3) Receipt by the title insurance company of such con-
struction statements, lists of subconstractors, lien waivers and
receipts as it shall determine to be appropriate. Disbursements may
be periodic or progress payments, and th e title insuranc'e company may
make such inspections and withhold such payments as it deems necessary
to insure completion in, compliance with plans and specifications. The
title insurance company shall be entitled to charge and the trustee
shall be empowered to pay a reasonable fee for the services rendered
-10-
by the title insurance company, and the trustee may collect such
charge from the owner, and in the same manner as that which is
provided for in Section 4 below, for the collection of insurance
premiums paid by the Association. . .
(4) In ,the event a contract is entered into pursuant to
paragraph b above, the written consent of such owner to said payment. '
. ,
e. Nothing contained in this Section 2 shall be construed to
make the Association or the mortgagee of record responsible for collection
or noncollection of any insurance proceeds; said Association or
mortgagee being responsible solely for the insurance proceeds which
come into their hands. Such owner of a lot damaged or destroyed by
causes referred to above shall collect or cause to be collected from
the insurance carrier involved the proceeds of the policy covering
his lot, for the use of the trustee and mortgagee as hereinabove
provided. J
f. In the event that a reconstruction contract is, for any
reason, not entered into pursuant to the provisions of paragraphs
band c above, within 180 days after deposit of insurance proceeds
with the title insurance company, as herein p~ovided, said title
insurance company shall disburse said proceeds to the mortgagee of
record of the affected lot as its interest appears to retire the
indebtedness secured under said mortgage, and disburse the remaining
deposits, if any, to such lot owner, as the interest may appear.
Section 3. Waiver of Subrogation. All policies of physical
damage insurance shall contain waivers of subrogation and waivers of
any defense based on co-insurance or of invalidity arising from any
acts of the insured and it shall provide that such policies may not
be cancelled or substantially modified without at least ten days'
prior written notice to all of the insureds and all of the mortgagees
of record of the lots.
Section 4. Lien for Premiums. The Association may, but shall
not be required, to make payment of insurance premiums on behalf of
any owner who becomes delinquen't in such payment. In the event that
the Association does make such payment, then such payment and the cost
thereof shall be treated as if it is part of the monthly assessment
as described in Article VI hereof and shall be a charge on the lot
and a continuing lien on the lot for whose benefit such premium payment
is made and also the personal obligation of the owner of such property
at the time when such premium payment is made.
ARTICLE VIII
PARTY WALLS
Section 1. General Rules of Law to Apply.
Each wall which is
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built as part of the original construction of the homes in Sandpiper
Cove Townhouse Development and placed on the dividing line between
the lots shall cons ti tute a party wall and to the exten t not inconsis ten t
with the provisions of this Article, the general rules of law regard-
ing party walls and of liability for property damage due to negligent
or willful acts or omissions shall apply thereto.
Section 2. Share of Repair and Maintenance. The cost of
reasonable repair and maintenance of a party wall shall be shared by
the owners who make use of the wall in proportion to such use.
Section 3. Destruction by Fire or Other Casualty. If a party
wall is destroyed or damaged by fire or other casualty, either owner
who has used the wall may restore it, and if the other owner there-
after makes use of the wall he shall contribute to the cost of restora-
tion thereof in proportion to such use without prejudice, however,
to the right of any such owner to call for a larger contribution from
the others under any rule of law regarding liability for negligent or
willful acts or omissions.
Section 4. Weatherproofing. Notwithstanding any prov~s~ons
of this Article, any owner, who, by his negligent or willful act,
causes the party wall to be exposed to the elements shall bear the
whole cost of furnishing the necessary protection against such elements.
Section 5. Right to Contribution Runs with Land. The right
of any owner to contribution from any other owner under this Article
shall be appurtenant to the lot and shall pass to such owner's successors
in title.
Section 6. Arbitration. In the event of any dispute arising
concerning a party wall, or under the provisions of this Article, each
party shall choose one arbitrator and such arbitrator shall choose
one additional arbitrator and the decision of a majority of all the
arbitrators shall be final. and conclusive of the question involved.
In the event a third arbitrator cannot be agreed upon, then either
party may make application to Hennepin District Court for appointment
of a third arbitrator by the District Court.
)
ARTICLE IX
ARCHITECTURAL CONTROL COMMITTEE
Review by Committee. From and after the completion of con-
struction and sale of any lot within Sandpiper Cove Townhouse Develop-
ment, no building, fence, wall or other structure shall be commenced,
erected or maintained upon such lot, nor shall any exterior addition
to or change or alteration therein; be made until the plans and specifi-
cations showing the nature, kind, shape, height, mater~als and location
-12-
of the same shall have been submitted to and approved in writing as
to harmony of external design and location in relation to surrounding
structures and topography by the Association or by an architectural
committee composed of three or more representatives appointed by the
Association. In the event the Association fails to approve or dis-
approve such design and location within thirty (30) days after said
plans and specificiations have been submitted to it or in any event
if no suit to enjoin the addition, alteration or change has been
commenced prior to the completion thereof, approval will not be re-
quired and this Article shall be deemed to have been fully complied
with. The prevailing party in an action.brought by the Association
pursuant to this Article shall be deemed entitled to recover from the
other party reasonable attorneys' fees together with all necessary
costs and disbursements in connection therewith.
ARTICLE X
EXTERIOR AND INTERIOR MAINTENANCE
Section 1. Exterior Maintenance. In addition to maintenance
upon the common areas, the Association may provide exterior maintenance i
upon each lot which is subject to assessment under Article VI hereof
as follows: to paint, repair, replace, or recondition roofs, gutters,
downspouts, exterior building surfaces, trees, shrubs, grass, walks,
and roadways. ~
---
Section 2. Interior Maintenance. In addition to' the mainten-
ance described in Section 1 hereof, the Association may also provide
the maintenance of sewer and water lines and systems which may lead
to or are in or under the dwellings and which lines and systems are
owned by the Association.
Section 3. Assessment of Cost. The cost of such exterior
and interior maintenance shall be assessed against the lot upon which
such maintenance is done and shall be added to and become a part of
the annual assessment to which such lot is subject under Article VI
hereof; provided that the Association, when establishing the annual
assessment against each lot for any assessment year as required under
Article VI hereof, may add thereto the estimated cost of the exterior
and interior maintenance for that year but shall thereafter make such
adjustments with the owner as is necessary to reflect the cost thereof.
)
Section 4. Access at Reasonable Hours. For the purpose solely
of performing the exterior and interior m~intenance authorized by
this Article, the Association, through i~s duly authorized agents or
employees, shall have the right after reasonable notice to the owner,
to enter upon any lot at reasonable hours of any day.
"
.. ARTICLE XI
EAS EMENTS
Section 1.
Extent of Mutual Easements. The title of a lot
-13-
shall include an exclusive easement on the adjoining lot or lots
on areas occupied by fireplaces, roof overhangs, air conditioning
compressors, decks, balconies, flower boxes, utility installations
and other appurtenances, which are part of the original construction
of any improvement on a lot or which are added pursuant to the pro-
visions of Articie IX hereof. The title of the adjoining lot or'
lots shall be subject to such easements.
Section 2. Other Rights and Obligations of the Association.
The Association, subject to the rights of the owners as set forth in
this Declaration, shall be responsible for, and be vested with, the
exclusive management and control of the common areas and all improve-
ments thereon (including furnishings and equipment related thereto),
and shall keep the same in good, clean, attractive and sanitary condi-
tion, order and repair.
There shall be no obstruction of the common areas except con-
struction materials and equipment during the construction period or
except as specifically provided herein. Nothing shall be altered on,
,constructed in, or removed from the common areas except upon the
prior written consent of the Association.
Nothing contained in this Declaration shall be construed or
deerned to constitute a dedication, express or implied, of any part.of
the common areas to or for any public use or purpose whatsoever.
ARTICLE XII
ADDITIONAL RESTRICTIONS
Section 1. No lot shall be used except for residential purposes
axcept that Developer shall be entitled to maintain Model Townhouses
upon th e lots.
Section 2. No animals., livestock or poul try of any kind shall
be raised, bred or kept on any lot except that dogs, cats or other
household pets may be kept,' provided they are not kept, bred or main-
tained for any commercial purpose.
)
Section 3. No sign of any kind shall be displayed to the public
view on any lot, except that a "For Sale" sign may be displayed provided
that it is in such form as the Association may require, except that
Developer shall be permitted to erect and maintain upon the properties
such signs as it deems.appropriate to advertise the development until
the Developer conveys the last lot.
Section 4. Garbage, rubbish and trash shall not be kept on
a lot except in sanitary containers. All incinerators or other equip-
ment used or kept for the storage or disposal of such material shall
be kept in a clean and sanitary condition.
-14-
Section 5.
carried on upon any
be or may become an
No noxious or offensive activities shall be
lot nor shall anything be done thereon which
annoyance or a nuisance to the neighborhood.
may
Section 6. No structure of a temporary character, trailer,
basement, tent, shack, garage, barn or other building shall be used
on any lot or the common areas at any time as a residence, ei ther tem-
porarily or permanently.
Section 7. No television or radio antennae shall be erected
or placed upon the exterior' of a lot~
Section 8. Each lot shall be used for residential purposes
only. No impr~vement or structure whatever, other than single family
dwelling houses, together with any garage, fence, patio, or other
structure'accessory to the dwelling house and approved by the Architec-
tural Control Committee may be erected, placed, or maintained.
!' .:.
Section 9. All sporting equipment, toys, outdoor cooking
equipment (except permanent installations), and other equipment and
supplied necessary or convenient to residential living shall be enclosed--
or shall be screened from view. The storage or collection of rubbish
of any character whatsoever, any material that emits foul or obnoxious
ordors, the growing of any noxious weed or other natural substances,
and the harboring of the source of any noise or activity which disturbs
the peace, comfort or serenity of owners is prohibited. No lot shall
be used for the storage of materials not customary to or necessary and
convenient for residential living.
ARTICLE XIII
GENERAL PROVISIONS
Section 1. Duration. The easements created hereby shall be
permanent and the covenants and restrictions contained in this Declara-
tion shall run with and bind th e land and shall inure to the benefi t
of and be enforceable by the Association or the owner of any lot sub-
ject to this Declaration, their respective legal representatives, heirs,
successors and assigns, for a term of twenty (20) years from the date
this Declaration is recorded, after which time said covenants, restrict-
ions shall be automatically renewed for successive periods of ten (10)
year s .
)
Section 2. Amendment of Declaration. This Declaration may
be amended by a vote of not less than seventy-five (75%) of the members
of the Association present and entitled to vote a,t a meeting held upon
thirty (30) days' written notice to each member reasonably detailing
the propsed change and stating the time and place of the meeting. The
amendments shall be effective from date of recording such amendment
in the office of the Regi'ster of Deeds, Hennepin County, Minnesota.
-15-
I
J
)
\
Section 3. Control of Developer. Until the Board of Directors
of the Association is elected, the rights, titles, powers, privileges,
trusts, duties and obligations vested in or imposed on the Board of Dir-
ectors by law, this Declaration and the By-Laws of said Association shall
be performed by th~ Developer.
Section 4. Notices. Any notice required to be sent to any
member or owner under the provisions of this Declaration shall be deemed
to have been properly sent when mailed postpaid to the last know address
of the person who appears as member or owner on the records of the Associ-
ation at the time of such mailing.
Section 5. Enforcement of these covenants and restrictions
shall be by any proceeding at law or in equity against any person or
persons violating or attempting to violate any covenant or restriction
either to restrain violation or to recover damages and against the
land to enforce any lien created by these covenants; and failure by
the Association or by any owner to enforce any covenant or restriction
herein contained shall in no event be deemed a waiver of the right
to do so thereafter.
Section 6. The singular shall be deemed to include the plural
wherever appropriate, and unless the context clearly indicates to the
contrary, any obligations of the owners or members shall be joint and
several except where the context otherwise requires.
Section 7. Severability. Invalidation of anyone of these
covenants or restrictions by judgment or Court Order shall in no wise
effect any other provision which shall remain in full force and effect.
ARTICLE XIV
ADDITIONAL PROVISIONS
The following provisions shall take precedence over all other
provisions of this Declaration, and in the event of any inconsistency or
contradiction, the following provisions shall control.
Section l.
to written notification
mance by the individual
or By-Laws which is not
A first mortgagee of a Lot, upon request, is entitlec
from the Association of any default in the perfor-
Lot Owner of any obligation under the Declaration
cured within sixty (60) days.
Section 2. A first mortgagee of a Lot who obtains title to a
Lot pursuant to the remedies provided in the mortgage, or foreclosure of
the mortgage, or Deed (or assignment in lieu of foreclosure), will be
exempt from any "right of first refusal" contained in the Declaration of
By-Laws.
Section 3. Any'first mortgagee of a Lot who obtains title to
-16-
a Lot pursuant to the remedies provided in the mortgage or foreclosure
of the mortgage will not be liable for such Lot's unpaid assessments
which accrue prior to the acquisition of title to such Lot by the mortgagee.
Section 4. Unless at least seventy-five percent (75%) of the
first mortgagees of Lots (based upon one vote for each first mortgage
owned) or Lot owners (each Lot having one vote) other than the sponsor,
developer or builder, have given their prior written approval, the Associ-
ation shall not be entitled to:
(1) by act or omission seek to abandon, partition, subdivide,
encumber, sell or transfer the Common Properties owned,
directly or indirectly, by such Association, corporation
or trust for the benefit of the Lots.
The granting of easements for public utilities or for
other public purposes consistent with the intended use of
such Common Properties shall not be deemed a transfer
within the meaning of this clause;
(2) change the method of determining the obligations, assess-
ments, dues or other charges which may be levied against
a Lot;
(3) by act or omission change, waive or abandon any scheme
of regulations, or enforecement thereof, pertaining to
the architectural design or the exterior appearance of
Living Units, "the exterior maintenance of Living Units,
the maintenance of the Common Properties, party walks or
common fences and driveways, or the unkeep of lawns and
plan tings.
(4) fail to maintain fire and extended coverage on insurable
Common Properties on a current replacement cost basis in
an amount not less than one hundred percent (100%) of
the insurance value (based on current replacement cost);
(5) use hazard insurance proceeds for losses to any Common
Properties for other than the repair, replacement or
reconstruction of such Common Properties.
) Section 5. First mortgagees of Lots shall have the right' to
examine the books and records'of the Associatio~, which owns the Common
Properties.
Section 6. First mortgagees of Lots may, jointly or singly, pay
taxes or other charges which are in default and which mayor have become a
charge against any Common Properties and may pay overdue premiums on hazard
.... '
-17-
insurance policies, or secure new hazard insurance coverage on the lapse of
a policy, for such Common Properties, and first mortgagees making such pay-
ments shall be owed immediate reimbursement therefor from the Association.
Section 7. No provision of the Declaration or By-Laws shall
give a Lot Owner or any other party, priority over any rights of first
mortgagees of Lots pursuant to their mortgages in the case of a distribution
of Lot Owners of insurance proceeds or condemnation awards for Losses to
or ~ taking of Common Properties.
Section 8. As see iation assessments shall inc1 ud e an ad equa te'
reserve fund for maintenance, repairs and replacement of those elements
of the Common Properties that must be replaced on a periodic basis and are
payable in regular installments rather than by special assessments.
Section 9. Any agreement for professional management, or any
other contract providing for services by the developer, sponsor or builder,
must provide for termination by either party without cause or payment of
a termination fee on ninety (90) days or less written notice and a maximum
contract term of three years.
Section lOG Reference to mortgagee herein includes the
mortgagee, its successors and assigns.
Section 11. A mortgagee who takes a deed in lieu of foreclosure
shall enjoy the same priority over assessments granted a purchaser at mortgage
foreclosure sale.
IN WITNESS WHEREOF, the undersigned, being the Developer herein,
has executed this instrument as of the day' and year first above written.
::~~~/'4u~
Its President
By: /;26.
STATE OF MINNESOTA) sSG
COUNTY OF HENNEPIN)
------
--
)
day of
Gleason,
tion, on
The foregoing instrument was acknowledged before me this . 10th
Aoril " 1978, by William L. Gleason, Presi 'ret and Robert J..
Secretary, of GLEASON COMPANY REALTO~S' IN. a innesota. Co:rpora-
C"- . ...... f,
behalf of the corporation. /. ~'l... . . 'D::J".~t>-,.
:'" ,,,,I":~...,.,,,.-,/) .",
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, 'to" -. ,",~-:;("l::_' \ -', \~. -. .
.. otar vp 1..~"~-~erin~.' ~
, - ~. -~~r .:-r-....
y/ commiss io~ :\1i~~:~~'S~}":l~; :i.~,
:. ~~; ....:-~~':.; .!.~. ...~"~
....\..1'\ ., -II ~. '~'-'~\( '.J.rfo....i
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'{;""~,,,,':;.~~.j "
" '.....1.1( ~..' f ........~ -
"':i'.:;~''''':
THIS INSTRUMENT WAS DRAFTED BY:
David D. Himlie, Atty.
5050 Excelsior Boulevard
St. Louis Park, Minnesota 55416
-18-
4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
TOO: 612-531-5109
City Hall Fax: 612-531-5136
Police Fax: 612-531-5174
Public Works Fax: 612-533-7650
Fire Oep't. Fax: 612-531-5175
July 17, 1998
Mr. Dan Leaf
Rockford Homeowners Association
8951 42nd Avenue North
New Hope, MN 55427
Subject:
Development Agreement between City of New Hope and Rockford Owners Association
Dear Dan:
Enclosed is an executed copy of the Development Agreement between the City of New Hope and
Rockford Owners Association for your files.
If you have any questions, please feel free to contact me at 531-5119. Thank you for your cooperation.
Sincerely,
~~\\M~
Kirk McDonald
Director of Community Development
cc: Dan Donahue, City Manager
Family Styled City ~ For Family living
GORDON L. JENSEN*
WILLIAM G . SWANSON
STEVEN A. SONDRALL
MICHAEL R. LAFLEUR
MARTIN P. MALECHA
BREIT A. PERRY*
C. ALDEN PEARSONt
OF COUNSEL
LORENS Q. BRYNFSrAD
'Real Property Law Specialist
Certified By The
Minnesota State Bar
Association
tQualified ADR Neutral
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JENSEN SWANSON & SONDRALL, P.A.
Attorneys At Law
8525 EDINBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1999
TELEPHONE (612) 424-8811 . TELEFAX (612) 493-5193
May 15, 1998
Mr. Dan Leaf
Rockford Homeowners Association
8951 42nd Avenue North
New Hope, Minnesota 55427
and
Mr. Peter Rawski
Rockford Homeowners Association
8921 42nd Avenue North
New Hope, Minnesota 55427
RE: Development Agreement between City of New Hope
and Rockford Owners Association
Our File No. 99.11155
Dear Dan and Peter:
This letter is in follow-up to the meeting we recently had concerning the Development
Agreement for the construction improvements at Sandpiper Cove. The City will need the
following information from the Homeowners Association before any monies can be
disbursed for construction improvements:
1. l'. copy of all construction plans acceptable to the City building official.
2. A copy of your contract with Construction Consulting and Inspections Limited,
and copies of any other construction contracts or subcontracts entered into by the
Association as requested by the City.
3. A Sworn Construction Statement executed by the Association and your consulting
engineer for all housing improvements showing estimates of all anticipated
contractor's contracts or subcontracts for the housing improvements and the
anticipated amounts for each contract.
4. A total Project Cost Statement.
5.
Copies of any licenses or permits necessary to construct the housing
improvements.
May 15, 1998
Page 2
6. An accord 25 certificate indicating that all insurance coverages required by Article 5 of the
Development Agreement have been acquired by the Association.
7. A copy of your proposed Repair and Replacement Policy as required by Section 6.11 of the
Agreement.
8. Verification that you have retained and continue to retain an experienced professional property
manager as required by Section 6.15 of the Development Agreement.
9. Signed copies of the Development Agreement.
If you have any questions concerning these items, please do not hesitate to contact me.
Very truly yours,
Steven A. Sondrall
New Hope City Attorney
JENSEN SWANSON & SONDRALL, P.A.
SAS: sr
cc: Kirk McDonald, New Hope Community Development Coordinator
LEAF.LTR (28I\SAS)
DEVELOPMENT AGREEMENT
Between
CITY OF NEW HOPE, MINNESOTA
and
ROCKFORD OWNERS ASSOCIATION
Dated as of: April 27, 1998
TABLE OF CONTENTS
PAGE
ARTICLE I - DEFINITIONS .
Section 1.1.
2
Definitions
2
. . . . . . . . . . . . . .
ARTICLE n - REPRESENTATIONS Atl\ID WARRANTIES.
. . . . . . . . . . . . .. 6
Section 2.1. Representations by the City .... . . . .. .............. 6
Section 2.2. Representations and Warranties bv the Association . . . . . . . . . 8
ARTICLE ill - CONSTRUCTION FINANCE; DISBURSEMENT OF PROCEEDS 9
Section 3. 1. Housing Improvement Funds ........................ 9
Section 3.2. Conditions Precedent to Initial Disbursement. . . . . . . . . . . '" 10
Section 3.3. Further Conditions Precedent to All Disbursements. . . . . . . . .. 10
Section 3.4. Requests for Disbursement . . . . . . . . . . . . . . . . . . . . . . . .. 11
Section 3.5. Conditions Precedent to the Final Disbursement. . . . . . . . . . .. 12
Section 3.6 . Waiver .................................... 13
Section 3.7. Deposit of Funds bv Association . . . . . . . . . . . . . . . . . . . .. 13
ARTICLE IV - CONSTRUCTION OF HOUSING IMPROVEMENT . . . . . . . . .. 13
Section 4.1.
Section 4.2.
Section 4.3.
Section 4.4.
Construction of Housing: Improvements . . . . . . . .
Construction Plans ....................
Commencement and Completion of Construction ..
Certification of Completion . . . . . . . . . .
13
14
15
15
ARTICLE V - INSURANCE . . . . . . . . . . . . . .
Section 5.1.
Section 5.2.
16
Insurance . . . . . . . . . . . . . . . . .
Subordination ..............
. . . . . . . . . . . . . .. 16
18
ARTICLE VI - SPECIAL COVENA1~TS
Section 6. 1.
Section 6.2.
Section 6.3.
Section 6.4.
Section 6.5.
Section 6.6.
Section 6.7.
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
N 0 Warranty of Condition or Suitability. Indemnification . . . . .. 18
Financial Statements ...:........................ 19
Financial Plan: Annual Reports . . . . . . . . . . . . . . . . . . . . " 19
Records and Inspection . . . . . . . . . . . . . . . . . . . . . . . . . 20
Maintenance of Property . . . . . . . . . . . . . . . . . . . . . . . . .. 20
Covenant to Maintain Net Revenues Available for Debt Service 20
Assig:nment of Association Assets .................... 21
Section 6.8. Association to Maintain Its Existence .................. 22
Section 6.9. Prohibition Against Assignment of Agreement. . . . . . . . . . . .. 22
Section 6.10. Notice of Fee Upon Transfer of Housing Units ............ 22
Section 6.11. Repair and Replacement Policy . . . . . . . . . . . . . . . . . . . . .. 23
Section 6.12. Increases in Assessments . . . . . . .................. 23
Section 6.13. Intentionally Omitted . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23
Section 6.14. FHA/HUD Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . .. 23
Section 6.15. Experienced Property Manager . . . . . . . . . . . . . . . . . . . . .. 23
ARTICLE vn - EVENTS OF DEFAULT .......
. . . . . . . . . . . .. 24
Section 7.1. Events of Default Defmed . . . . . . . . . . .. . . . . . . . . . .. 24
Section 7.2. Remedies on Default . . . . . . . . . . . . . . . . . . . . . . . . . . .. 24
Section 7.3. No Remedy Exclusive ......................... 24
Section 7.4. No Additional Waiver Implied by One Waiver . . . . . . . 25
ARTICLE VIII - ADDITIONAL PROVISIONS . . . . . . . . . . . .
Section 8. 1.
Section 8.2.
Section 8.3.
Section 8.4.
Section 8.5.
Section 8.6.
Section 8.7.
Section 8.8.
Section 8.9.
SCHEDULES:
Schedule A:
Schedule B:
Schedule C:
Schedule D:
25
Conflict of Interests: City Representatives Not Individuallv Liable. 25
Equal Employment OpportunIty ..................... 25
Provisions Not Merl!ed With Deed . . . . . . . . . . . . . . . . . . .. 25
Titles of Articles and Sections .. . . . . . . . .. 25
Notices and Demands . . . . . . . . . . . . . . . . 25
Counterparts ............. . . . . . . . . . . . .. 26
Recording . . . . . . . . . . . . . . . . . . . . . . . . . . .. 26
Binding Act . . . . . . . . . . .. 26
Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 26
Property
Housing Improvements
Intentionally left blank
Disbursement Requisition of Association's Authorized Representative
ii
DEVELOPMENT AGREEMENT
THIS AGREEMENT, made on the 27th day of April, 1998, by and between the CITY
OF NEW HOPE, a Minnesota municipal corporation (the "City") and ROCKFORD OWNERS
ASSOCIATION, a Minnesota nonprofit corporation (the "Association").
\VITNESSETH:
WHEREAS, the City is authorized under Minn. Stat. Chapter 428A (the "Act") to
establish by ordinance a housing improvement area within which housing improvements are
made or constructed and the costs of the improvements are paid in whole or in part by housing
improvements special assessment fees imposed against the benefiting properties within the area;
and
WHEREAS, by Ordinance No. 98-02 adopted January 12, 1998 (the "Enabling
Ordinance"), the Council established a Housing Improvement Area for the Sandpiper Cove
Townhome Development in order to facilitate certain improvements to 36 individual townhome
units within said development, which property is legally described in Schedule A hereto and is
hereafter referred to as the ("Property"); and
\VHEREAS, by Resolution No. 98-50 adopted March 23, 1998 (the "Fee Resolution")
the City Council imposed a housing improvement special assessment fee on Housing Units (as
hereinafter defined) in the Sandpiper Cove Townhome Housing Improvement Area in order to
finance certain housing improvements in that area; and
WHEREAS, the Act authorizes the City to issue bonds in the amount necessary to defray
the expenses to be incurred in making the housing improvements, which bonds are payable
primarily from proceeds of the housing improvement special assessment fee imposed under the
Fee Resolution and may be further secured by the pledge of the City's full faith, credit and
taxing power; and
WHEREAS, It IS the intention of the City to initially finance the cost of the
improvements internally with funds from the City's Temporary Financing Construction Fund in
that the proposed total construction costs for the project are too small for a separate bond issue.
However, the City intends to group these costs with other City bondable costs and sell bonds
to reimburse the Temporary Financing Construction Fund on or before March 31, 1999 as
authorized by the Act.
\VHEREAS, prior to adoption of the Fee Resolution by the City Council, the Association
submitted to the City a financial plan in accordance with the Act that provides for the
Association to finance maintenance and operation of the common elements in the Sandpiper Cove
Townhome Development and a long-range plan to conduct and finance capital improvements
therein; and
1
WHEREAS, the City believes that development of the improvements to the Property
pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best
interests of the City and health, safety, morals and welfare of its residents, and in accord with
the public purposes and provisions of the applicable State and local laws and requirements under
which the Sandpiper Cove Townhome Housing Improvement Area has been undertaken.
WHEREAS, the Association intends to complete the housing improvements as further
described in this Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of
the parties hereto, each of them does hereby covenant and agree with the other as follows:
ARTICLE 1
Definitions
Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears
from the context:
"Act" means Minn. Stat. SS428A.ll through 428A.21 (Laws 1996).
"Actual Construction Cost" means that amount necessary to complete all housing
improvements as set forth in Schedule B not to exceed $500,000.00.
"Administrative, Legal and Finance Cost" means 15 % of the actual construction costs.
"Annual Debt Service" means the amount of principal and interest payable on the Bonds
on February 1 and August 1 of each year.
"Association" means Rockford Owners Association or its permitted successors and
assIgns.
"Association's Authorized Representative" means the property manager retained by the
Association to manage the Property.
"Agreement" means this Agreement, as the same may be from time to time modified,
amended or supplemented.
"Bonds" means the general obligation bonds or obligations issued by the City III
connection with the Housing Improvement Area pursuant to the Act, and any bonds or
obligations issued to refund any Bonds.
"Bond Fund" means the debt service fund for the Bonds to be established under the Bond
Resolution.
2
"Bond Resolution" means the resolution to be approved by the Council awarding the sale
and establishing the terms of the Bonds.
"City" means the City of New Hope, Minnesota.
"Certificate of Completion" means the certification provided to the Association, pursuant
to Section 4.4 of this Agreement.
"Common Area" means the common area as defmed in the Declaration.
"Completion Date" means the date of actual completion of the Housing Improvements
as certified by the City Building Official pursuant to Section 4.4 hereof.
"Construction Contacts" means the contract(s) between the Contractor(s) and the
Association to complete the Housing Improvements in accordance with the Construction Plans.
"Construction Plans" means the plans, specifications, drawings and related documents
on the construction work to be performed by the Association on the Property which shall be as
detailed as the City may reasonably request to allow it to ascertain the nature and quality of the
proposed construction work.
"Contractor" means any person, including subcontractors, who shall be engaged to work
on, or to furnish materials and supplies for the Housing Improvements.
"Council" means the City Council of the City.
"County" means the County of Hennepin, Minnesota.
"Declaration" means the Amended and Restated Declaration of Covenants, Conditions,
Restrictions and Easements for Rockford Owners Association dated
"Draw Request" means the form, substantially in the form of Schedule D attached
hereto, which is submitted to the City when a disbursement is requested and which is referred
to in Section 3.4 hereof.
"Enabling Ordinance" means Ordinance No. 98-02 adopted by the Council on January
12, 1998, which establishes the Housing Improvement Area.
"Engineer" means Construction Consulting and Inspections, Limited, the engineers
selected by the Association to prepare or cause to be prepared the Construction Plans for the
Housing Improvements.
"Engineers Contract" means the agreement by and between the Association and the
Engineer pertaining to preparation of the Construction Plans and supervision of construction.
3
"Event of Default" means an action by the Association listed in Article VII of this
Agreement.
"Fee" means the housing improvement special assessment fee in connection with the
Housing Improvements imposed on all Housing Units in the Housing Improvement Area
pursuant to the Fee Resolution.
"Fee Resolution" means Resolution No. 98-50, adopted by the Council on March 23,
1998, which imposes the Fee and any subsequent resolution amended Resolution No. 98-50.
"Fee Revenues" means all proceeds of the Fee payable to the City.
"Financial Advisors" means Reserve Data Analysis or any successor Independent
financial advisory firm retained by the City.
"Financial Plan" means the Financial Plan prepared by the Financial Advisors dated
March 17, 1998.
"Fiscal Year" means any year commencing January 1 and ending December 31.
"Housing Improvements" means the improvements to the Property
as set forth in Schedule B hereof.
"Housing Improvement Area" means the real property located within the Sandpiper
Cove Townhome Housing Improvement Area described in Schedule A.
"Housing Unit" means real property and improvements thereon within the Housing
Improvement Area, consisting of one lot on which a dwelling unit is located that is occupied by
a person or persons for use as a residence.
"Independent" when used with reference to an attorney, engineer, architect, certified
public accountant, or other professional person, means a person who (i) is in fact independent,
(ii) does not have any material fmancial interest in the Association or the transaction to which
his or her certificate or opinion relates (other than the payment to be received for professional
services rendered), and (iii) is not connected with the City or the Association as an officer,
director or employee.
"Inspecting Engineer" means the Engineer.
"wlanagement Consultant" means a person or entity, experienced in the study and
management of multi-unit rental housing and having a favorable reputation throughout the United
States or the State of Minnesota for skill and experience in such work and, unless otherwise
specified herein, retained or employed by the Association and acceptable to the City whose
acceptance shall not be unreasonably withheld.
4
"Maturity Date" means the date the Bonds have been fully paid, defeased or redeemed
in accordance with their terms.
"Mortgage" means any mortgage made by the Association which is secured, in whole
or in part, with the Property and which is a permitted encumbrance pursuant to the provisions
of Section 6.9 of this Agreement.
"Net Revenues Available for Debt Service" means, as of the date of calculation, the
balance in the Bond Fund and any other fund into which Fee Revenues have been deposited as
of the date of calculation, less the amount of fees, as estimated by the City's Financial Advisor,
that are anticipated to be payable by the City in connection with the Bonds on or before the next
Payment Date to the City's Financial Advisor, the registrar for the Bonds, and the paying agent
for the Bonds.
"Payment Date" means any date on which the principal, interest and premium, if any,
is due and payable on the Bonds.
"Permitted Investments" means investment legally permitted for the City's funds.
"Project Fund" means the City's Temporary Financing Construction Fund which will
be used to fmance construction of the housing improvements and which will be reimbursed by
the proceeds from the sale of bonds.
"Property" means the real property described in Schedule A of this Agreement.
"State" means the State of Minnesota.
"Total Construction Cost" means the actual construction cost plus the administrative,
legal and finance cost.
"Unavoidable Delays" means delays beyond the reasonable control of the party seeking
to be excused as a result thereof which are the direct result of strikes, other labor troubles, fire
or other casualty to the Housing Improvements or the Property, litigation commenced by third
parties which, by injunction or other similar judicial action, directly results in delays, or acts
of any federal, state or local governmental unit (other than the City in exercising its rights under
this Agreement) which directly result in delays. Unavoidable Delays shall not include delays
in the Association's obtaining of permits or governmental approvals necessary to enable
construction of the Sandpiper Cove Townhome development by the dates such construction is
required under Section 4.3 of this Agreement.
5
ARTICLE II
Representations and Warranties
Section 2.1. Representations bv the City. The City makes the following representations
as the basis for the undertakings on its part herein contained:
a. The City is a municipal corporation under the laws of the State and has
the power to enter into this Agreement and carry out its obligations hereunder.
b. The undertaking of the Housing Improvements and the issuance by the
Municipality of the Bonds are authorized by the Act.
c. On January 12, 1998, after receipt of petitions by owners of at least 25
percent of the Housing Units in the Housing Improvement Area and after due publication
and mailing of notice of hearing, the Council held a public hearing on the adoption of
the Enabling Ordinance and adopted said Enabling Ordinance.
d. On March 23, 1998, after receipt of petitions by owners of at least 25
percent of the Housing Units in the Housing Improvement Area and after due publication
and mailing of notice of hearing, the Council held a public hearing on the adoption of
the Fee Resolution and adopted the Fee Resolution.
e. The periods for veto of both the Enabling Ordinance and the Fee
Resolution have expired without objection by owners of at least 35 percent of the
Housing Units in the Housing Improvement Areas all in accordance with the Act.
f. The City proposes to internally finance the cost of the Housing
Improvements through its Temporary Financing Construction Fund. There is currently
$600,000.00 in the Temporary Financing Construction Fund earmarked to cover the total
construction costs for the housing improvements. This money shall be disbursed to the
Association in accordance with Article III of this" Agreement". However, it is the right
of the City, acknowledged by the Association, to issue bonds as provided by the Act to
reimburse its Temporary Financing Construction Fund in an amount equal to the total
cost of the housing improvements. Said costs shall include the actual construction costs
of the improvements and administrative, finance and legal costs equal to 15 % of the
actual construction costs, all of which shall not exceed $600,000.00. Included in the
administrative, finance and construction costs shall be the building permit fee, all bond
issuance costs and all of the City's legal and other private consulting costs. However,
the State's surcharge on the building permit fee equal to .0005 % of the valuation of the
housing improvements shall not be included in the referenced costs herein and must be
paid separately by the Association.
6
g. There will be an Amendment to the Fee Resolution No. 98-50 after fmal
construction costs are detennined on the project which shall implement the following
changes:
i. It is estimated that actual construction costs will not exceed
$500,000.00. If actual construction costs are less than $500,000.00 the housing
improvement special assessment fee will be reduced on a pro rata basis to each
unit within the housing improvement area in an amount equal to the amount of
the reduction. This will also result in an amount equal to corresponding reduction
to the City's fees for administrative, legal and fmance costs since said fees are
based on 15 % of the actual construction costs.
ii. There will be an Amendment to Section 2.02 of Fee Resolution
No. 98-50 extending the time for prepayment of the Housing Improvement Fee
until the close of the City's business day on November 20, 1998.
Ill. There will be an Amendment to Section 2.03 of Fee Resolution
No. 98-50 changing the interest initiation date on the fee to January 1, 1999.
iv. The intent of these Amendments to Fee Resolution No. 98-50
referenced above is to waive the cost of capitalized interest on the Association's
use of the City's interim construction financing prior to the sale of bonds
authorized by the Act and confonn the interest calculation to the fonnula used by
the City in detennining the total fee to each unit set out in Exhibit A to
Resolution No. 98-50. The amendments will also pennit prepayment on actual
rather than estimated construction costs. Further, section (g) above constitutes
a waiver by the City of the building perm.'it fee. These charges are being made
in consideration for making the housing improvement special assessment fee
subject to an 8% interest rate in accordance with the City's interest rate policy
on all special assessment improvement projects.
v. The parties to this Agreement acknowledge and agree the City will
finance, on an interim basis, the housing improvements proposed by this
Agreement with its Temporary Construction Financing Fund. It is further agreed
that the total project amount shall not exceed $600,000.00. The total project
amount shall be calculated and disbursed as (i) actual construction costs payable
to the Association's contractors for construction of the housing improvements set
forth on Schedule B attached hereto, and (ii) administrative, legal and financing
costs payable to the City. It is also understood and agreed by the parties that the
City's obligation to finance actual construction costs shall not exceed $500,000.00
and that the administrative, legal and financing fees payable to the City by the
Association shall equal 15 % of the actual construction costs;
7
h. There is no litigation pending or to the best of its knowledge, threatened
against the City relating to the Housing Improvements or the use of the Temporary
Construction Financing Fund or questioning the powers or authority of the City under
the Act, or questioning the corporate existence or boundaries of the City or the title of
any of the present officers of the City to their respective offices.
i. The execution, delivery and performance of this Agreement does not
violate any agreement or any court order or judgment in any litigation to which the City
is a party or by which it is bound.
Section 2.2. Representations and Warranties bv the Association. The Association
represents and warrants that:
a. The Association is a nonprofit corporation, duly organized and in good
standing under the laws of the State of Minnesota, is not in violation of any provisions
of its articles of incorporation, bylaws or the laws of the State, is duly authorized to
transact business within the State, has power to enter into this Agreement and has duly
authorized the execution, delivery and performance of this Agreement by proper action
of its board of directors.
b. The Association will construct, operate and maintain the Housing
Improvements in accordance with the terms of this Agreement, the Financial Plan, and
all local, state and federal laws and regulations (including, but not limited to,
environmental, zoning, building code and public health laws and regulations).
c. The Housing Improvements constitute a permitted use under applicable
zoning laws.
d. The Association has received no notice or communication from any local,
state or federal official that the activities of the Association or the City in the Housing
Improvement Area may be or will be in violation of any environmental law or regulation
(other than those notices or communications of which the City is aware). The Association
is not aware of any facts the existence of which would cause it to be in violation of or
give any person a valid claim under any local, state or federal environmental law,
regulation or review procedure.
e. The Association will construct the Housing Improvements in accordance
with all local, state or federal energy-conservation laws or regulations.
f. The Association will obtain, in a timely manner, all required permits,
licenses and approvals, and will meet in a timely manner, all requirements of all
applicable local, state and federal laws and regulations which must be obtained or met
before the Housing Improvements may be lawfully constructed.
8
g. Neither the execution and delivery of this Agreement, the consummation
of the transactions contemplated hereby, nor the fulfillment of or compliance with the
terms and conditions of this Agreement is prevented, limited by or conflicts with or
results in a breach of, the terms, conditions or provisions of any corporate restriction or
any evidences of indebtedness' agreement or instrument of whatever nature to which the
Association is now a party or by which it is bound, or constitutes a default under any of
the foregoing.
h. Whenever any Event of Default occurs and if the City shall employ
attorneys or incur other expenses for the collection of payments due or to become due
or for the enforcement of performance or observance of any obligation or agreement on
the part of the Association under this Agreement, the Association agrees that it shall,
within ten days of written demand by the City pay to the City the reasonable fees of such
attorneys and such other expenses so incurred by the City.
ARTICLE ill
Construction Finance: Disbursement of Proceeds
Section 3.1. Housing Improvement Funds.
a. The parties acknowledge and agree the interim construction fInancing for
the actual housing improvements will be paid from the City's Temporary Financing
Construction Fund. The parties further acknowledge and agree the City will sell bonds
as authorized by the Act to reimburse the City for its interim financing from the
Temporary Financing Construction Fund. The bond sale shall be equal to the total
project amount as stated in S2.1(b) and (9) of this Agreement. The fee revenue
established by Resolution No. 98-50 will be used to pay the City's debt service on the
bonds. The Association acknowledges and agrees however, the total project amount will
be based on an 8 % interest rate and the actual interest rate on the Bond Sale will not
cause a reduction to the fees charged against the individual units as established by
Resolution No. 98-50 or any subsequent resolution amending Resolution 98-50; provided
that the Total Project Amount may be such lesser amount mutually agreed by the
Association and the City in the event the cost of the Housing Improvements and the total
Fee is reduced in accordance with Section 2.1(g) of this Agreement.
b. Payment to the City of its administrative, legal and financing costs shall
occur immediately upon the City's receipt of proceeds from the bond issuance in addition
to the reimbursement for actual construction costs paid from the Temporary Financing
Construction Fund.
Moneys in the Temporary Financing Construction Fund shall be subject to withdrawal
from time to time only for the purposes of paying the actual construction costs of the Housing
Improvement incurred by the Association for such costs. None of the Funds in the Project Fund
9
shall be used by the Association for any purposes other than payment or reimbursement of actual
construction costs of the Housing Improvements.
Section 3.2. Conditions Precedent to Initial Disbursement. The obligation of the City
to make the initial disbursement hereunder shall be subject to the condition precedent that the
Association shall be in compliance with the conditions contained in Section 3.3 hereof and the
further condition precedent that the City shall have received, on or before the date of such initial
disbursement hereunder, the following:
a. A copy of the Construction Plans, approved by the City Building Official
in accordance with Section 4.2 hereof and in detail sufficient to enable the Association
to authorize commencement of construction of the Housing Improvements, certified by
the Engineer and the Association.
b. Copies of the Engineers Contact, the Construction Contract and such
subcontracts as may be reasonably requested from time to time by the City.
c. A sworn construction statement duly executed by the Association and the
Engineer for the Housing Improvements sho:wing estimates of all anticipated Contractors'
contract or subcontracts for specific portions of the work on the Housing Improvements
and the amounts anticipated to become due each such Contractor, including all costs and
expenses of any kind incurred and to be incurred in construction of the Housing
Improvements.
d. A total project cost statement, incorporating estimates of the construction
costs as shown on the sworn construction statement described in paragraph (c) above and
setting forth all other costs and expenses of any kind anticipated to be incurred in
completion of the Housing Improvements and sworn to by the Association to be a true,
complete and accurate account of all costs actually incurred and a reasonably accurate
estimate of all costs to be incurred in the future.
e. Copies of any licenses and permits which the Inspecting Engineer certifies
as necessary and sufficient to construct the Housing Improvements, including all
foundation and grading permits and building permits from time to time necessary for
such construction.
Section 3.3. Further Conditions Precedent to All Disbursements. The obligation of
the City to make the initial disbursement hereunder and each subsequent disbursement hereunder
shall be subject to the condition precedent that the Association shall be in compliance with all
conditions set forth in Section 3.2. hereof, and the further conditions precedent that on the date
of such disbursement:
a. The City has received a written statement from the Association's
Authorized Representative certifying with respect to each payment: (I) that none of the
10
items for which the payment is proposed to be made has formed the basis for any
payment theretofore made from the Project Fund; (II) that each item for which the
payment is proposed to be made is or was necessary in connection with the Housing
Improvements; and (III) that following such proposed payment sufficient moneys will
remain on deposit in the Project Fund to provide for payment in full of all remaining
costs estimated to be incurred in order to complete the Housing Improvements. In the
case of any contract providing for the retention of a portion of the contract price, there
shall be paid from the Project Fund only the net amount remaining after deduction of any
such portion.
b. No Event of Default under this Agreement or event which would constitute
such an Event of Default but for the requirement that notice be given or that a period of
grace or time elapse, shall have occurred and be continuing.
c. No determination shall have been made by the Inspecting Engineer that the
amount of undisbursed moneys and any other funds deposited in the Project Fund by the
Association or to be deposited under Section 3.7 hereof, are insufficient to pay expenses
of any kind which reasonably may be anticipated in connection with the completion of
the Housing Improvements; or if such a determination has been made and notice thereof
sent to the Association, the Association has deposited the necessary funds with the City
in accordance with Section 3.7 hereof.
d.
satisfied.
The disbursement requirements set forth in Section 3.4 hereof have been
e. If requested by the City, the City shall be furnished with a statement of
the Association and of any Contractor, in form and substance satisfactory to the City
setting forth the names, addresses and amount due or to become due as well as the
amounts previously paid to every Contractor, subcontractor, person, firm or corporation
furnishing materials or performing labor entering into the construction of any part of the
Housing Improvement.
f. No license or permit necessary for the construction of the Housing
Improvements shall have been revoked or the issuance thereof subjected to challenge
before any court or other governmental authority having or asserting jurisdiction
thereover.
Section 3.4. Requests for Disbursement.
a. Whenever the Association desires a disbursement to be made hereunder,
which shall be no more often than montWy, the Association shall submit to the City a
Draw Request, duly executed on behalf of the Association, setting forth the information
requested therein. Disbursements will be made the Wednesday following the second
Monday of each month, provided the Draw Request is received by the 20th day of the
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preceding month. Each Draw Request shall be limited to amounts equal to (i) the total
of such costs actually incurred and owing (or previously paid by the Association to the
date of such Draw Request for work performed on and materials used in the Housing
Improvements, plus (ii) the cost of materials and equipment not incorporated in the
Property, but delivered to and suitably stored at the Property; less, (iii) (a) a minimum
of five percent, and (b) at all times less prior disbursements. Notwithstanding anything
herein to the contrary, no disbursements for materials stored at the Property will be
authorized unless the Association shall provide adequate security for such storage. Each
Draw Request shall constitute a representation and warranty by the Association that all
representations and warranties set form in this Agreement are true and correct as of the
date of such Draw Request.
b. At the time of submission of each Draw Request, the Association shall
submit the following to the City:
i. A written lien waiver from each Contractor for work done and
materials supplied by it which were paid for pursuant to the next preceding Draw
Request.
ii. Such other supporting evidence as may be requested by the City to
substantiate all payments which are to be made out of the relevant Draw Request
and/ or to substantiate all payments then made with respect to the Housing
Improvements.
c. If on the date a disbursement is desired, the Association has performed all
of its agreements and complied with all requirerpents theretofore to be performed or
complied with hereunder, including satisfaction of all applicable conditions precedent
contained in Article III hereof, upon approval by the Council the City shall make a
disbursement to the Association in the amount of the requested disbursement, or such
lesser amount as shall be approved.
Section 3.5. Conditions Precedent to the Final Disbursement. The making of the fmal
disbursement by the City shall be subject to the condition precedent that the Association shall
be in compliance with all conditions set forth in Sections 3.2 through 3.4 hereof and, further,
that the following conditions shall have been satisfied prior to the Completion Date:
a. The Housing Improvements have been substantially completed in
accordance with the Construction Plans and Article IV hereof, and the City shall have
received a certificate of completion from the Association and the Inspecting Engineer,
certifying that to the best of their knowledge:
i. Work on the Housing Improvements has been completed in
accordance with the Construction Plans and all other labor, services, materials
and supplies used in such work have been paid for;
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ii. The completed Housing Improvements conform with all applicable
building laws and regulations of the governmental authorities having jurisdiction
over the Housing Improvements; and
Ill. Lien waivers submitted to the City under Section 3. 5 (c) cover all
labor, services, materials and supplies in connection with the Housing
Improvements .
b. The City shall have received satisfactory evidence that all work requiring
inspection by municipal or other governmental authorities having jurisdiction has been
duly inspected and approved by such authorities and by the bureau, corporation or office
having jurisdiction, and that all requisite certificates of occupancy and other approvals
have been issued.
c. The City shall have received a lien waiver from each Contractor for all
work done and for all materials furnished by it for the Housing Improvements.
Section 3.6. Waiver. The City may, in its sole discretion, without notice to or consent
from any other party, waive any or all conditions for disbursement set forth in this Article.
However, the making of any disbursement prior to fulfillment of any condition therefor shall not
be construed as a waiver of such condition, and the City shall have the right to require
fulfillment of any and all such conditions prior to authorizing any subsequent disbursement.
Section 3.7. Deposit of Funds bv Association. If the City shall at any time in good
faith determine that the actual construction costs will exceed $500,000.00 to pay all costs and
expenses of any kind which reasonably may be anticipated in connection with the completion of
the Housing Improvements and shall thereupon send written notice thereof to the Association
specifying the additional amount required to be deposited by the Association to provide sufficient
funds to complete the Housing Improvements, the Association agrees that it will, within ten (10)
calendar days of receipt of any such notice, deposit with the City the amount of funds specified
in the notice and shall authorize the City to disburse such funds prior to disbursement of
additional money in the City's Temporary Financing Construction Fund or actual construction
costs.
ARTICLE IV
Construction of Housing Improvement
Section 4.1. Construction of Housing Improvements. The Association agrees that it
will construct the Housing Improvements on the Property in accordance with the approved
Construction Plans and will operate and maintain, preserve and keep the Housing Improvements
or cause the Housing Improvements to be maintained, preserved and kept with the appurtenances
and every part and parcel thereof, in good repair and condition, all in accordance with Article
VI hereof.
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Section 4.2. Construction Plans.
a. Before disbursement of any funds from the Temporary Financing
Construction Fund, the Association shall submit the Construction Plans to the City
Building Official, who shall review such plans on behalf of the City. The Construction
Plans shall provide for the construction of the Housing Improvements, and shall be in
conformity with this Agreement, and all applicable State and local laws and regulations.
The City Building Official will approve the Construction Plans in writing if: (i) the
Construction Plans conform to the terms and conditions of this Agreement; (ii) the
Construction Plans conform to all applicable federal, state and local laws, ordinances,
rules and regulations; (iii) the Construction Plans are adequate to provide for construction
of the Housing Improvement; and (iv) no Event of Default has occurred. No approval
by the City Building Official shall relieve the Association of the obligation to comply
with the terms of this Agreement, applicable federal, state and local laws, ordinances,
rules and regulations, or to construct the Housing Improvements in accordance therewith.
No approval by the City Building Official shall constitute a waiver of an Event of
Default. If approval of the Construction Plans is requested by the Association in writing
at the time of submission, such Construction Plans shall be deemed approved unless
rejected in writing by the City Building Official, in whole or in part. Such rejections
shall set forth in detail the reasons therefore, and shall be made within 30 days after the
date of their receipt by the City Building Official. If the City Building Official rejects
any Construction Plans in whole or in part, the Association shall submit new or corrected
Construction Plans within 30 days after written notification to the Association of the
rejection. The provisions of this Section relating to approval, rejection and resubmission
of corrected Construction Plans shall continue to apply until the Construction Plans have
been approved by the City Building Official. The City Building Official's approval shall
not be unreasonably withheld. Said approval shall constitute a conclusive determination
that the Construction Plans (and the Housing Improvements, constructed in accordance
with said plans) comply to the City Building Official's satisfaction with the provisions
of this Agreement relating thereto.
b. If the Association desires to make any material change in the Construction
Plans after their approval by the City Building Official, the Association shall submit the
proposed change to the City Building Official for approval. For the purposes of this
Section, a "material change" means any change that:
i. Increases or decreases the total cost of the Housing Improvements
by more than $10,000.00; or
ii. Involves any change in construction materials or design that
reasonably requires review for compliance with state and local law and
regulations. If the Construction Plans, as modified by the proposed change,
conform to the requirements of this Section 4.2 of this Agreement with respect
to such previously approved Construction Plans, the City Building Official shall
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approve the proposed change and notify the Association in writing of its approval.
Such change in the Construction Plans shall, in any event, be deemed approved
by the City Building Official unless rejected, in whole or in part by written notice
by the City Building Official to the Association, setting forth in detail the reasons
therefor. Such rejection shall be made within ten (10) days after receipt of the
notice of such change. The City Building Official's approval of any such change
in the Construction Plans will not be unreasonably withheld.
Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Association shall complete the construction of the Housing Improvement by October
15, 1998. All work with respect to the Housing Improvements to be constructed or provided
by the Association on the Property shall be substantially in conformity with the Construction
Plans as submitted by the Association and approved by the City.
The Association agrees for itself, its successors and assigns and every successor in
interest to the Property, or any part thereof, that the Association, and such successor and
assigns, shall promptly begin and diligently prosecute to completion the construction of the
Housing Improvements thereon, and that such construction shall in any event be commenced and
completed within the period specified in this SectiQn 4.3 of this Agreement. Until construction
of the Housing Improvements has been completed, the Association shall make reports, in such
detail and at such times as may reasonably be requested by the City as to the actual progress of
the Association with respect to such construction.
Section 4.4. Certification of Completion.
a. Promptly after substantial completion of the Housing Improvements in
accordance with those provisions of the Agreement relating solely to the obligations of
the Association to construct the Housing Improvements (including the dates for beginning
and completion thereof), the City will furnish the Association with an appropriate
instrument so certifying. Such certification by the City shall be a conclusive
determination of satisfaction and termination of the agreements and covenants in the
Agreement with respect to the obligations of the Association, and its successors and
assigns, to construct the Housing Improvements and the dates for the beginning and
completion thereof. Such certification and such determination shall not constitute
evidence of compliance with or satisfaction of any obligation of the Association under
Article VI hereof.
b. The certificate provided for in this Section 4.4 of this Agreement shall be
in such form as will enable it to be recorded in the proper office for the recordation of
deeds and other instruments pertaining to the Property. If the City shall refuse or fail
to provide any certification in accordance with the provisions of this Section 4.4 of this
Agreement, the City shall, within thirty (30) days after written request by the
Association, provide the Association with a written statement, indicating in adequate
detail in what respects the Association has failed to complete the Housing Improvements
15
in accordance with the provisions of the Agreement, or is otherwise in default, and what
measures or acts it will be necessary, in the opinion of the City, for the Association to
take or perform in order to obtain such certification.
c. The construction of the Housing Improvements shall be deemed to be
substantially completed as determined by the City Building Official, who may execute
the certificate of completion on behalf of the City.
ARTICLE V
Insurance
Section 5.1. Insurance.
a. The Association will provide and maintain or cause to be provided and
maintained at all times during the process of constructing the Housing Improvements an
All Risk Broad Form Basis Insurance Policy and, from time to time during that period,
at the request of the City, furnish the City with proof of payment of premiums on
policies covering the following:
i. At any time that construction is taking place at the Property,
Builder's risk insurance, written on the so-called "Builder's Risk - Completed
Value Basis," in an amount equal to One hundred percent (100%) of the insurable
value of the Housing Improvements at the date of completion, and with coverage
available in nonreporting form on the so-called "all risk" form of policy provided
that the Association need not provide such insurance at any time that the
Association's existing hazard insurance policy provides coverage equivalent to the
builders risk insurance coverage. The interest of the City shall be protected in
accordance with a clause in form and content satisfactory to the City;
ii. Comprehensive general liability insurance (including Operations,
contingent liability, operations of subcontractors, completed operations and
contractual liability insurance) together with an Owner's Contractor's Policy with
limits against bodily injury and property damage of not less than $1,000,000.00
for each occurrence and $2,000,000.00 in the aggregate (to accomplish the above
required limits, an umbrella excess liability policy may be used); and
iii. Workers' compensation insurance provided by all Contractors.
b. Upon completion of construction of the Housing Improvements, the
Association shall maintain, or cause to be maintained, at its cost and expense, and from
time to time at the request of the City, shall furnish proof of the payment of premiums
on, insurance as follows:
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i. Insurance against loss and/or damage to the Property and the
Housing Improvements under a policy or policies covering such risks as are
ordinarily insured against by similar businesses. .
ii. Comprehensive general public liability insurance, including
personal injury liability (with employee exclusion deleted), against liability for
injuries to persons and/or property, in the amount for each occurrence and for
each year of $1,000,000.00 and shall be endorsed to show the City as additional
insured.
Ill. Such other insurance, including workers' compensation insurance
respecting all employees of the Association, in such amount as is customarily
carried by like organizations engaged in like activities of comparable size and
liability exposure; provided that the Association may be self-insured with respect
to all or any part of its liability for workers' compensation.
c. All insurance required in Article V of this Agreement shall be taken out
and maintained in responsible insurance companies selected by the Association which are
authorized under the laws of the State to assume the risks covered thereby. Upon request,
the Association will deposit annually with the City policies evidencing all such insurance,
or a certificate or certificates or binders of the respective insurers stating that such
insurance is in force and effect. Unless otherwise provided in this Article V of this
Agreement each policy shall contain a provision that the insurer shall not cancel nor
modify it in such a way as to reduce the coverage provided below the amounts required
herein without giving written notice to the Association and the City at least thirty (30)
days before the cancellation or modification be.comes effective. In lieu of separate
policies, the Association may maintain a single policy, blanket or umbrella policies, or
a combination thereof, having the coverage required herein, in which event the
Association shall deposit with the City a certificate or certificates of the respective
insurers as to the amount of coverage in force upon the Housing Improvements.
d. The Association agrees to notify the City immediately in the case of
damage exceeding $100,000.00 in amount to, or destruction of, the Property, the
Housing Improvements or any portion thereof resulting from fire or other casualty. In
such event the Association will forthwith repair, reconstruct and restore the Housing
Improvements to substantially the same or an improved condition or value as it existed
prior to the event causing such damage and, to the extent necessary to accomplish such
repair, reconstruction and restorations the Association will apply the Net Proceeds of any
insurance relating to such damage received by the Association to the payment or
reimbursement of the costs thereof.
The Association shall complete the repair, reconstruction and restoration of the
Housing Improvements and the Property, whether or not the Net Proceeds of insurance
received by the Association for such purposes are sufficient to pay for the same. Any
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Net Proceeds remaining after completion of such repairs, construction and restoration
shall be the property of the Association.
e. The Association and the City agree that all of the insurance provisions set
forth in this Article V shall terminate upon termination of this Agreement.
Section 5.2. Subordination. Notwithstanding anything to the contrary contained in this
Article V, the rights of the City with respect to the receipt and application of any proceeds of
insurance shall, in all respects, be subject and subordinate to the rights of any lender holding a
mortgage on a Housing Unit.
ARTICLE VI
Special Covenants
Section 6.1. No Warrantv of Condition or Suitabilitv Indemnification.
a. The City does not make any warranty, either express or implied, as to the
design or capacity of the Housing Improvements, as to the suitability for operation of the
Housing Improvements or that they will be suitable for the Associations purposes or
needs. The Association releases the City from, agrees that the City shall not be liable for,
and agrees to hold the City, its Council and its respective officers and employees,
harmless against any claim, cause of action, suit or liability for any loss or damage to
property or any injury to or death of any person that may be occasioned by any cause
whatsoever pertaining to the Housing Improvements or the Property or the use thereof.
b. The Association further agrees to indemnify and hold harmless the City
its officers and employees, against any and all losses, claims, damages or liability to
which the City its officers and employees, may become subject under any law arising out
of any act, omission, representation or misrepresentation of the Association in connection
with the issuance and sale of the Bonds and the carrying out of the transactions
contemplated by this Agreement, and to reimburse the City, its officers and employees,
for any out-of pocket legal and other expenses (including reasonable attorney fees)
incurred by the City, its officers and employees, in connection with investigation of any
such losses, claims, damages or liabilities or in connection with defending any actions
relating thereto. The City agrees, at the request and expense of the Association, to
cooperate in the making of any investigation in defense of any such claim and promptly
to assert any or all of the rights and privileges and defenses which may be available to
the City. The provisions of this Section shall survive the payment and redemption of the
Bonds.
c. All covenants, stipulations, promises, agreements and obligations of the
City contained herein shall be deemed to be the covenants, stipulations, promises,
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agreements and obligations of the City and not of any governing body member, officer,
agent, servant or employee of the City in the individual capacity thereof.
Section 6.2. Financial Statements. The Association agrees to furnish to the City, by
no later than 120 days after the end of each Fiscal Year, beginning with Fiscal Year 1999, until
a copy of the annual audited financial statements of the Association for the preceding Fiscal
Year, including a balance sheet and operating statements, audited by an Independent certified
public accountant. Such financial statements shall be accompanied by a separate written
statement from such Independent certified public accountant preparing such report that such
Independent accountant has obtained no knowledge of any default by the Association in the
fulfillment of any of the terms, covenants, provisions or conditions of this Agreement or if such
accountant shall have obtained knowledge of any such default the accountant shall disclose in
such statement the default and the nature thereof, but such accountant shall not be liable directly
or indirectly to any party for failure to obtain knowledge of any default the Association and the
City agree and understand that compliance with this Section constitutes compliance with Section
1.807 of the Enabling Ordinance.
Section 6.3. Financial Plan: Annual Reports. The Association agrees to furnish to the
City, by no later than 120 days after the end of each Fiscal Year:
a. An updated Financial Plan for the Property prepared by a Management
Consultant acceptable to the City, in substantially the form of the Financial Plan dated
March 17, 1998, and providing plans for capital improvements to the Property and
projected Association dues. The updated Financial Plan shall include a schedule for the
replacement reserves required to maintain the Common Areas and the other portions of
the Property which the Association is obligated to maintain pursuant to the Declaration.
The Financial Plan shall also include the proposed increases in assessments payable by
Owners of the Housing Units. The City shall have thirty (30) days after receipt to
approve or reject the updated Financial Plan, which approval shall not be unreasonably
withheld or denied. If the City rejects the updated Financial Plan the City shall give
written reasons for the rejection to the Association and the Association shall submit a
revised updated Financial Plan to the City which the City shall review and approve or
reject within ten (10) days. The above procedure shall be followed until the City
approves the updated Financial Plan, provided that if the City reasonably withholds its
approval and does not approve a updated Financial Plan within six (6) months the City
may engage a consultant to prepare an updated Financial Plan and the Association shall
reimburse the City for reasonable costs incurred by the consultant in the preparation of
the updated Financial Plan.
b. A written report by an Independent engineer describing the physical
condition of the Property and the Housing Improvements as of the end of the preceding
Fiscal Year, with detail sufficient to enable the City to evaluate compliance with the
Financial Plan, the Reserve Plan and the Association's obligations under this Agreement.
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c. A written report regarding the status of qualifying for FHA/HUD
insurance for the Housing Units in accordance with Section 6.14 hereof, the expected
date for approval, if known, and any known impediment to obtaining such qualification.
d. Evidence of compliance with Section 6.15 including a copy of the written
contract or agreement with the property manager and the property manager's resume.
Section 6.4. Records and Inspection. The Association shall maintain (i) copies of
federal, state, municipal and other licenses and permits obtained by the Association relating to
the operation of the Property and the Housing Improvements, (ii) financial books and records
reflecting the operations of the Property and the Housing Improvements, and (iii) all other
documents, instruments, reports and records required by any provision of this Agreement or the
Financial Plan or by law relating to the Property or the affairs of the Association. The City
shall have the right to inspect all such materials, except any materials made private or
confidential by federal or state law or regulation, and the Property at all reasonable times and
to make such copies and extracts as it may desire. At the request of the City the Association
shall furTIlsh to the City, at the Association's expense, a copy of any such materials which are
required by the City in the performance of its duties under this Agreement, the Enabling
Ordinance, the Fee Resolution or the Act.
Section 6.5. Maintenance of Propertv. The Association agrees it will keep or cause
to be kept the Property and the Housing Improvements in good repair and good operating
condition at its own cost. The Association shall make all repairs, replacement, and
improvements to the Property specified in the Financial Plan, as such plan may be amended in
accordance with Section 6.3 hereof.
Section 6.6. Covenant to Maintain Net Revenues Available for Debt Service.
a. In the event that thirty (30) business days before any Payment Date, the
Net Revenues Available For Debt Service are or will be less than 100 percent of the total
principal and interest due on the Bonds on such Payment Date, the City will provide
written notice to the Association of such fact and the amount of the deficiency. Within
10 days after receipt of such notice of deficiency in Net Revenue Available for Debt
Service, the Association shall be liable for and shall pay the City such deficiency.
Failure on the part of the City to provide the notice of the deficiency at the time specified
herein shall not relieve the Association of its obligation to make the required payment
10 days after the actual notice of the deficiency is provided by the City to the
Association. Failure on the part of the Association to make the required payment under
this Section within 10 days after receipt of notice thereof shall entitle the City to exercise
its remedies under this Agreement, notwithstanding any cure period provided in Article
VII hereof.
b. In the event that the Association makes any payment to the City under
Section 6.6(a) and, 10 business days before any Payment Date thereafter the City
20
determines that Net Revenues available for Debt Service, excluding the amount of all
prior payments by the Association under Section 6.6(a), are at least 100 percent of the
total principal and interest due on the Bonds on such Payment Date, the City shall
promptly return to the Association the amount of the prior payment, without interest
thereon provided that the Association has reimbursed the City for any disbursements
made out of the Special Reserve Fund pursuant to Section 3.1O(a), (b) or (e). Nothing
in this Section 6.6(b) shall be construed to relieve the obligation of the Association to
make any payment required under Section 6.6(a) hereof.
Section 6.7. Assignment of Association Assets.
a. As security for the Association's obligations under Section 6.6 hereof, the
Association does hereby bargain, sell, assign and set other unto the City, all the dues,
fees and assessments and other income of any type (the "Dues") owing to the Association
from owners of Housing Units in the Property, together with all cash, investments and
securities of any type held by the Association now or hereafter in any operating or
reserve accounts (the "Accounts"). The Dues and Accounts are referred to collectively
as the "Association Assets". This assignment shall constitute a perfected, absolute and
present assignment, provided that the Association may, so long as no Event of Default
with respect to Section 6.6 hereof occurs, collect and retain all Association Assets.
The provisions of this Section 6.7 are intended to be a mere license in favor of
the Association and a mere deferral of the City's exercise of its perfected, absolute and
present rights hereunder, and shall not be construed to be a future assignment thereof.
b. The Association hereby covenants and warrants to the City that the
Association has not executed any prior assignments of any Association Assets, nor has
it performed any act or executed any other instrument that might prevent the Association
from operating under any of the terms and conditions of this assignment .or that would
limit the Association in such operation.
c. The Association hereby agrees that, so long as the Association's
obligations under Section 6.6 hereof remain outstanding the Association will not, without
the written consent of the City, make any other assignment, pledge or other disposition
of any of the Association Assets, or consent in any assignment of same; and any such
acts, if done without the written consent of the City, shall be null and void.
d. Upon the occurrence of an Event of Default with respect to Section 6.6
hereof, the City shall have the right to withdraw funds from, and liquidate any securities
in any Accounts, and collect the Dues from the owners of Housing Units, and apply the
same for deposit in the Bond Fund. This assignment shall be binding upon the occupants
of Housing Units in the Property from the date of filing by the City in the office or
offices where this Agreement is filed that an Event of Default under Section 6.6 hereof
has occurred and is continuing and service of a copy of the notice upon the occupants of
21
the Housing Units. The expenses, including any attorney's fees, reasonably incurred
pursuant to the powers herein contained shall be deemed to be immediately due and
payable by the Association to the City and shall be secured hereby. The City shall not
be liable to account to the Association for any action taken pursuant hereto other then to
account for any Association Assets actually received by the City.
e. The City shall not be obligated to perform or discharge, nor does it
undertake to perform or discharge, any obligation, duty or liability under any agreement
between the Association and or owners of Housing Units in the Property, and the
Association hereby agrees to defend and indemnify the City and hold it harmless for any
and all liability , loss or damage which it mayor might incur under or by reason of this
assignment and from any and all claims and demands whatsoever which may be asserted
against it by reason of any alleged obligation or undertaking on its part to perform or
discharge any of the terms or covenants contained in any agreement by and among the
Association and the owners of Housing Units in the Property, except such claims and
demands that arise out of the negligence or willful misconduct of the City, its officers,
employees and agents. Should the City incur any such liability, loss or damage under
or by reason of this assignment, or in the defense against any such claims or demands
arising out of this assignment, the amount thereof, including costs, expenses and
reasonable attorneys' fees, together with interest thereon at the rate of interest on the
Bonds, shall be secured hereby, and the Association shall reimburse the City therefore
immediately upon demand.
Section 6.8. Association to Maintain its Existence. The Association agrees that, so
long as the Bonds are outstanding, it will maintain its existence as a nonprofit corporation under
the laws of Minnesota; will not dissolve or overwise dispose of all or substantially all of its
assets; and will not consolidate with or merge into another corporation or permit one or more
other corporations to consolidate with or merge into it.
Section 6.9. Prohibition Against Assignment of Agreement. The Association
represents and agrees that prior to the Maturity Date the Association has not made or created
and will not make or create or suffer to be made or created any total or partial sale, assignment,
conveyance, or any trust or power, or transfer in any other mode or form of or with respect to
the Association's rights, interests or obligations under this Agreement or any part thereof, or any
contract or agreement to do any of the same, without the prior written approval of the City.
Section 6.10. Notice of Fee Upon Transfer of Housinl! Units. The Association agrees
that it will use its best efforts to ensure that owners of each Housing Unit upon which a Fee is
imposed under the Fee Resolution provide notice of the Fee to prospective buyers or transferees
upon any sale or transfer of the Housing Unit. Such efforts by the Association shall include,
but are not limited to ensuring that Housing Unit owners include a description of the Fee in a
disclosure certificate provided to the purchaser substantially in the form required by Minnesota
Statutes, Section 515BA-107 regardless of whether such statute applies to the Housing Unit.
22
The Association shall amend the Declaration as necessary to require the owners of each Housing
Unit to provide such disclosure.
Section 6.11. Repair and Replacement Policy. On or before
, 1998 the Association must adopt a detailed repair and replacement
policy for the Common Area and other portions of the Property which the Association is
obligated to maintain pursuant to the Declaration. The repair and replacement policy must be
consistent with the terms of the Declaration and the Declaration must be amended prior to the
date set forth above, if necessary, to conform to the repair and replacement policy. The repair
and replacement policy must detail the division for repairs and replacement between the
Association and the owners of the Housing Units.
Section 6.12. Increases in Assessments. The Association agrees to increase the
assessments payable pursuant to the Declaration by owners of Housing Units by an amount
sufficient to fund current operating expenses, replacement reserves and deferred maintenance
costs as permitted by the Declaration until the Assessments are sufficient in accordance with the
Financial Plan to pay the Project's current operating expenses' replacement reserves in
accordance with the approved Financial Plan and any deferred maintenance not otherwise
scheduled to be completed as part of the Housing Improvements. The Association shall give the
City written notice the first time that the Association intends to increase the assessments by less
than a sufficient amount. Such notice shall be submitted with the updated Financial Plan in
accordance with Section 6.3(a) hereof and the City shall approve or reject the proposal to reduce
or eliminate the assessments increase in the same manner that the City approves or rejects the
updated Financial Plan provided that the City shall not unreasonably withhold approval of the
Association's decision regarding assessments.
Section 6.13. Intentionallv Omitted.
Section 6.14. FHA/HUn Insurance. The Association agrees to use all reasonable
efforts to qualify for FHA/HUD mortgage insurance for the Housings Units. In determining
whether to take the steps necessary to qualify for such insurance the Association may take into
consideration the out-of-pocket costs and administrative costs that would be incurred in
qualifying for such insurance. In no event shall the Association be required to incur any
environmental testing or remediation costs or to construct any improvements, other than the
Housing Improvements, to qualify for FHA/HUD mortgage insurance.
Section 6.15. Experienced Propertv Manal!er. So long as the Bonds are outstanding,
the Association agrees to maintain "experienced professional property management" for the
Property. For purposes of this subsection "experienced professional property management" shall
mean a full time property manager who meets the following criteria:
a. Has at least five years of executive property management experiences
including experience with multi-unit residential housing.
23
b. Has experience working with boards and membership organizations.
c. Has demonstrated knowledge of maintenance and construction issues.
d. Has demonstrated knowledge of accounting, fInancial reporting, budgeting
and related issues.
e. Does not have an ownership interest in any Housing Unit and is not the
spouse, child, parent or sibling of anyone who has an ownership interest.
ARTICLE VII
Events of Default
Section 7.1. Events of Default Defined. The following shall be "Events of Default"
under this Agreement and the term "Event of Default" shall mean, whenever it is used in this
Agreement (unless the context otherwise provides), any failure by any party to obserVe or
perform any other covenant, condition, obligation or agreement on its part to be observed or
performed hereunder.
Section 7.2. Remedies on Default. Whenever any Event of Default referred to in
Section 7.1 of this Agreement occurs, the non-defaulting party may exercise its rights under this
Section 7.2 after providing thirty (30) days written notice to the defaulting party of the Event
of Default, but only if the Event of Default has not been cured within said thirty days or, if the
Event of Default is by its nature incurable within thirty days, the defaulting party does not
provide assurances reasonably satisfactory to the non-defaulting party that the Event of Default
will be cured and will be cured as soon as reasonably possible:
a. Suspend its performance under the Agreement until it receives assurances
that the defaulting party will cure its default and continue its performance under the
Agreement.
b. Use any balance in the Special Reserve Fund to cure the event of Default.
c. Take whatever action, including legal, equitable or administrative action,
which may appear necessary or desirable to collect any payments due under this
Agreement, or to enforce performance and observance of any obligation, agreement, or
covenant under this Agreement.
Section 7.3. No Remedv Exclusive. No remedy herein conferred upon or reserved to
the City or Association is intended to be exclusive of any other available remedy or remedies,
but each and every such remedy shall be cumulative and shall be in addition to every other
remedy given under this Agreement or now or hereafter existing at law or in equity or by
24
statute. No delay or omission to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a waiver thereof, but any such right
and power may be exercised from time to time and as often as may be deemed expedient. In
order to entitle the City to exercise any remedy reserved to it, it shall not be necessary to give
notice, other than such notice as may be required in this Article VII.
Section 7.4. No Additional Waiver Implied bv One Waiver. In the event any
agreement contained in this Agreement should be breached by either party and thereafter waived
by the other party, such waiver shall be limited to the particular breach so waived and shall not
be deemed to waive any other concurrent, previous or subsequent breach hereunder.
ARTICLE VIII
Additional Provisions
Section 8.1. Conflict of Interests: Citv Representatives Not Individuallv Liable. The
City and the Association, to the best of their respective knowledge, represent and agree that no
member or official of the City shall have any personal interest, direct or indirect in the
Agreement, nor shall any such member or officiai participate in any decision relating to the
Agreement which affects his personal interests or the interests of any corporation, partnership,
or association in which be is, directly or indirectly, interested. No member or official of the
City shall be personally liable to the Association, or any successor in interest, in the event of
any default or breach by the City or for any amount which may become due to the Association
or successor or on any obligations under the terms of the Agreement.
Section 8.2. Equal Emplovment Opportunitv. The Association, for itself and its
successors and assigns, agrees that during the construction of the Housing Improvements
provided for in the Agreement it will comply with all applicable federal, state and local equal
employment and non-discrimination laws and regulations.
Section 8.3. Provisions Not Mer~ed With Deed. None of the provisions of this
Agreement are intended to or shall be merged by reason of any deed transferring any interest
in the Property and any such deed shall not be deemed to" affect or impair the provisions and
covenants of this Agreement.
Section 8.4. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of the Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 8.5. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under the Agreement by either party to
the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally:t
25
a. In the case of the Association, is addressed to or delivered personally to
the Association at 8951 42nd Avenue North, New Hope, Minnesota 55427, Attention:
Dan Leaf, President, Rockford Homeowners Association.
b. In the case of the City, is addressed to or delivered personally to the City
at 4401 Xylon Avenue North, New Hope, Minnesota 55428, Attention: Daniel J.
Donahue, City Manager, or at such other address with respect to either such party as that
party may, from time to time designate in writing and forward to the other as provided
in this Section.
Section 8.6. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the sane instrument.
Section 8.7. Recordinll. The City shall record this Agreement and any amendments
thereto with the Hennepin County Recorder or Registrar of Titles. The Association shall pay
all costs for recording.
Section 8.8. Bindin~ Act. This Agreement shall inure to the benefit of and shall be
binding upon the City and the Association and their respective successors, heirs and assigns.
Section 8.9. Amendment. This Agreement may be amended only by written agreement
of he parties hereto.
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in
its name and the Association has caused this Agreement to be duly executed in its name on or
as of the date first above written.
CITY OF NEW HOPE, MINNESOTA
?~~
By Z ' f)j~~
Its City M~r
By:
ROCKFORD OWNERS ASSOCIATION
By:
Its:
/_ 6- .' # ~
( \~/7~~~~~ ,/ ~,
~7 . L:> .. - /:,. ~'Y'--
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( I~/~{k?c/
{rUL-S. it: ley
By:
Its:
26
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
- -Ii)
The foregoing instrument was acknowledged before me this / If day of
)rl~ ,1998, by W. Peter Enck and Daniel J. Donahue, the Mayor and City
Manager,r I.pectively, of the City of New Hope, Minnesota, a municipal corporation on behalf
of the City.
(Notarial Stamp or Seal)
NO~ 9 rt~
VALERIE J. LEONE
NOTARY PUBLIC - MINNESOTA
My Commission Expires
January 31, 2000
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this kl 'f~ day of
!}If'tf , 1998,by [JtU1/~[ LfiZI-" and [I//Lfe/. /3uk()(I(c ,
the '-" 'I f r:S.i C/ €.41 -r. and Irf {},tLlf t..r ", respectively, Of Rockford Owners
Association, a Mini:1esota nonprofit corporation on behalf of the corporation.
(Notarial Stamp or Seal)
VALERIE J. LEONE
NOTARY PUBLIC - MINNESOTA
My Commission Expires
January 31, 2000
,~'~~
ROCKFORD.DA (281\SAS)
27
SCHEDULE A
PROPERTY
Lots 1 through 59, inclusive, Sandpiper Cove, all of which is according to the
plates) thereof on file and of record in the office of the Registrar of Titles,
Hennepin County, Minnesota. Said housing improvement area consists of 36
housing units as of the adoption of this section.
SCHEDULE B
HOUSING IMPROVEMENTS
Pursuant to and in accordance with the January 30, 1998 overview specifications of
Construction Consulting & Inspections Ltd., the following housing improvements shall be made
per this agreement:
1. Replacement of 234 window units;
2. Replacement of 44 patio doors;
3. Replacement of 36 overhead garage doors;
4. Replacement of all rear decks and side entry stoops on 10 duplex buildings and
replacement of all rear decks and front entry stoops/decks on 4 fourplex buildings;
5. Repair of roofs on 2 duplex buildings with installation of new fiberglass reinforced
shingles, soffits and eave fascia;
6. Replacement of gutters and downspouts on selected buildings;
7. Replacement of all exterior lighting on the buildings;
8. Replacement of all exterior siding, soffits and fascia including wrap of all windows and
doors, trim and ceilings in stoops;
9. Replacement of garage mandoors in the duplex buildings;
10. The above mentioned construction shall also include all incidental work and repairs to
finish the construction to industry standards and comply with all building codes
regardless of whether said incidental work is described in this Code or in the January 30,
1998 Construction Consulting & Inspections, Ltd. Overview Specifications.
SCHEDULE C
(Intentionally Left Blank)
SCHEDULE D
DISBURSEMENT REOUISITION OF
ASSOCIATION'S AUTHORIZED REPRESENTATIVE
TO: City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
DISBURSEMENT DIRECTION
The undersigned Authorized Representative of Rockford Owners Association, a
Minnesota nonprofit corporation (the "Association"), hereby authorizes and request you to
disburse from the Project Fund held by you pursuant to the Development Agreement between
the City of New Hope, Minnesota and Rockford Owners Association, dated as of
, 1998 (the "Agreement"), the following amount to the following person
and for the following proper Housing Improvement cost and purpose:
11. Amount:
12. Payee:
13. Purpose:
all as defined and provided in said Agreement. The undersigned further certifies that (i) none
of the items for which payment is proposed to be made has formed the basis for any payment
theretofore made from the Project Fund, and (ii) each item for which the payment is proposed
to be made is or was necessary in connection with the Housing Improvements, and (iii) the
amount of funds to remain on deposit in the Project Fund following this disbursement is
currently estimated to be sufficient to pay all future costs of the Housing Improvements.
Dated:
, 1998.
Association's Authorized Representative
-
m\1'V 0.... I
~ ~
~w ""oq
-
COUNCIL
REQUEST FOR ACTION
Originating Department
Community Development
Approved for Agenda
Menda Section
Development
& Planning
4~8
By: l/
(
RESOLUTION APPROVING DEVELOPMENT AGREEMENT BETWEEN THE CITY OF NEW HOPE
AND ROCKFORD OWNERS ASSOCIATION (IMPROVEMENT PROJECT NO. 600)
Item No.
By: Kirk McDonald
8.2
The attached Development Agreement Between the City of New Hope and the Rockford Owners
Association (Improvement Project No. 600) has been prepared by the City Attorney and is the next step
in the process for improving the Sandpiper Cove Townhomes at 8701 - 8953 42nd Avenue North. The
City is authorized by state statute to establish by ordinance a housing improvement area within which
housing improvements are made and the costs are paid by housing improvement special assessment
fees imposed against benefiting properties within the area. On January 12 the City Council adopted an
enabling ordinance establishing a Housing Improvement Area for the Sandpiper Cove Townhome
Development in order to facilitate certain improvements to 36 individual townhome units. On March 23
the Council adopted an ordinance imposing a housing improvement special assessment fee on the
housing units within the Housing Improvement Area in order to finance certain housing improvements. A
condition of that resolution was that the Rockford Owners Association be required to enter into a
Development Agreement which sets forth the terms and responsibilities of the Association relative to this
project and the disbursement of funds by the City to finance the improvements.
Per the City Attorney's correspondence, the City previously agreed to several financing conditions for
the proposed housing improvements at Sandpiper Cove which will necessitate an amendment to the
March 23 Fee Resolution No. 98-50. Those conditions are outlined in the City Attorney's April 17 letter to
the attorney for the Rockford Owners Association and are incorporated in the Development Agreement
for consideration at the April 27, 1998, Council meeting. They are summarized as follows:
1. The building permit fee (approximate amount of $8,000.00) will be included as part of the 15%
administrative, legal and financing costs. However, the State surcharge will be paid separately by the
Association.
MOTION BY
TO: a tii}/)/t
I
(t f .~
, If). 'filA /
/w:J. c;f~ '7 ~
SECOND BY
1 )LYfLy
Review:
Administration:
Finance:
RFA-OOl
Request for Action
Page 2
4-27 -98
2. The prepayment date for the housing improvement fee will be extended until November 20, 1998.
This will give the City approximately one week to certify the unpaid fees to the county for collection
with real estate taxes beginning in 1999. Said costs must be certified by November 29, 1998.
3. The initiation date for the accrual of interest on the unpaid fees will be extended until January 1,
1999. Basically, the City is waiving capitalized interest. The funds earmarked to finance construction
before the sale of bonds are in the Temporary Financing Construction Fund. Bonds will be sold to
reimburse this fund sometime in March 1999, per the Finance Director. This concession was made in
consideration of the fact we are charging 8% interest on the fees in accordance with our special
assessment policy rather than our actual interest rate charge on the bonds.
This agreement has been reviewed by the New Hope Director of Finance and by the Rockford Owners
Association. The City Attorney will be available at the Council meeting to respond to questions the
Council may have on the Development Agreement.
Staff recommends approval of the resolution.
CITY OF NEW HOPE
RESOLUTION NO. 98- 72
RESOLUTION APPROVING DEVELOPMENT AGREEMENT BETWEEN
CITY--OF NEW HOPE AND ROCKFORD OWNERS ASSOCIATION
(IMPROVEMENT PROJECT NO. 600)
WHEREAS, the City is authorized under Minn. Stat. Chapter 428A (the "Act") to establish by
ordinance a housing improvement area within which housing improvements are made or
constructed and the costs of the improvements are paid in whole or in part by housing
improvements special assessment fees imposed against the benefiting properties within
the area: and
WHEREAS, by Ordinance No. 98-02 adopted January 12, 1998, (the "Enabling Ordinance"), the
Council established a Housing Improvement Area for the Sandpiper Cove Townhome
Development in order to facilitate certain improvements to 36 individual townhome units
within said development; and
WHEREAS, by Resolution No. 98-50 adopted March 23, 1998, (the "Fee Resolution") the City
Council imposed a housing improvement special assessment fee on Housing Units (as
hereinafter defined) in the Sandpiper Cove Townhome Housing Improvement Area in
order to finance certain housing improvements in that area; and
WHEREAS, a condition of that resolution was that the Rockford Owners Association be required to
enter into a Development Agreement which sets forth the terms and responsibilities of
the Association relative to this project and the disbursement of funds by the City to
finance the improvements; and
WHEREAS, said Development Agreement has been reviewed and is acceptable to both the Rockford
Owners Association and the New Hope City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New Hope that the
Development Agreement between the City of New Hope and Rockford Owners
Association is hereby approved.
Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 27th day of April,
- 1998.
5I~~
Mayor
Attest '-/l)1Mu ~
City Clerk
APR-23-98 THU 08:31
P.02/03
1;;T!Z.vr;:N A. SONDHAl..L
MI~NA=L R_ L...FLEUR
MARTIN P. MI\L.ECHA
WILLIAM O. STRAIT*
CORRICK & SONDRALL, P.A.
A1'TORNF.YS AT LAw
Edinburgh E:x:ccutive Officc Plaza.
8525 Edillurook CrOSSing
:Suite #203
Brooklyn Park. Minnesota 55443
TfU:PHONE (li12) 411s-5671
!-AX (li12) 42S-5867
LEGAL. ASSIsTANT
~HARC'lN n {1€:~SV
*APPROVED AOH NEVTRAl
April 23,1998
Kirk McDonald
NeW Hope Community Development Dir~\.tor
44n1 Xylon Avenue North
New Hope, MN 55428
RE: Sandpiper Cove Development ^grGoment
Our File; 99.11155
Dear Kirk:
Thi~ letter is in follow up to yesterday's telephone convArsation
concerning the Sandpin~r ~ove Oevelopment Agreement.
As we hav~ discussed, The City previously agreed to sp.v~ral
financing conditions for" t.he proposed housing improvemerrts at
Sandpiper Cove which will necessitate an amendment to the March
23rd Fee Resolution Nu. 98-50. Those conditions are outlined in my
April 17th letter to the attorney for the Rockford Owners
A~sociation and are incorporated in the DevelopmerlL Agreement for
coned derati on at the Apr' i I 27 I 1898 Cawnei 1 Meet i ng. They are
summarized as follows:
1. The building permit fee (~pproximate amount of $8,000.00)
will be included as part of the 15% administrative, legal
and financing costs. However, the State surcharge will be
paid separately by the Aasoci~Lion. It's my understanding
Ule su rcharge is. 0005% of the actual value of the hOiJ8 i ng
improvements. The Rllilding Official should ~stimat.e thi$
amount and communicate same to the repre~entatives of the
asaoc -j a L 'j on .
? The pr&payment date for the housing improvement fe~ will be
extended unt-i1 NovemtlE;r 20, 1998. This will give the City
approximately 1 week to certify the unpAid fees to the
count.y for collection with reai estate taxes beginning in
1999. Said costs must be cer'Lified by November 29, 1998.
3. The initiation date for the acc~ual of int~rest on the
APR-23-98 THU 08:32
P. 03/03
Kirk McDonald
April 23, 1998
Page 2.
unpaid fees will be extended until January 1, 199~.
Oasicaliy, we are waiving capitalized interest. The funds
earmarked to finance cons~ruc~ion before the sale of bonds
are in the Temporary Financing Construction Fund. Bonds
will be sold to reimburse thic fund com~time in March '999
per the finance Director. This concession was made in
consideration of the fact we are charging 8% interest on
the fees in accordanco with our special assessment policy
rather than our actual iflt:.en:~~t nit,e c;hcu"gE:) on tJ1E:) bonds.
Please contact me if you have any other questions or comments about
these issue::;; or' Lhro'. Deve 1 oprnent Cont.ract.
Very truly yours,
_1""""""'
~
Steven A. Sondrall
z. i t.2
cc: Dan Donahue
DEVELOPMENT AGREEMENT
Between
CITY OF NEW HOPE, MINNESOTA
and
ROCKFORD OWNERS ASSOCIATION
Dated as of: April 27, 1998
TABLE OF CONTENTS
PAGE
ARTICLE I - DEFINITIONS .................................... 2
Section 1.1. Definitions ................................... 2
ARTICLE IT - REPRESENTATIONS AND WARRANTIES. . . . . . . . . . . . . . . .. 6
Section 2.1. Representations by the City . . . . . . . . . . . . . . . . . . . . . . . .. 6
Section 2.2. Representations and Warranties by the Association . . . . . . . . . .. 8
ARTICLE ill - CONSTRUCTION FINANCE; DISBURSEl\1ENT OF PROCEEDS .. 9
Section 3.1. Housing Improvement Funds ........................ 9
Section 3.2. Conditions Precedent to Initial Disbursement . . . . . . . . . . . . .. 10
Section 3.3. Further Conditions Precedent to All Disbursements . . . . . . . . .. 10
Section 3.4. Requests for Disbursement . . . . . . . . . . . . . . . . . . . . . . . .. 11
Section 3.5. Conditions Precedent to the Final Disbursement. . . . . . . . . . .. 12
Section 3.6. Waiver .................................... 13
Section 3.7. Deposit of Funds by Association . . . . . . . . . . . . . . . . . . . .. 13
ARTICLE IV - CONSTRUCTION OF HOUSING IMPROVEl\1ENT . . . . . . . . .. 13
Section 4.1. Construction of Housin!:!: Improvements . . . . . . . . . . . . . . . .. 13
Section 4.2. Construction Plans ............................. 14
Section 4.3. Commencement and Completion of Construction . . . . . . . . . .. 15
Section 4.4. Certification of Completion . . . . . . . . . . . . . . . . . . . . . . .. 15
ARTICLE V - INSURANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16
Section 5.1. Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16
Section 5.2. Subordination ................................ 18
ARTICLE VI - SPECIAL COVENANTS . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18
Section 6. 1. No Warranty of Condition or Suitability. Indemnification . . . . .. 18
Section 6.2. Financial Statements ............................ 19
Section 6.3. Financial Plan: Annual Reports. . . . . . . . . . . . . . . . . . . . .. 19
Section 6.4. Records and Inspection . . . . . . . . . . . . . . . . . . . . . . . . . .. 20
Section 6.5. Maintenance of Property . . . . . . . . . . . . . . . . . . . . . . . . .. 20
Section 6.6. Covenant to Maintain Net Revenues Available for Debt Service .. 20
Section 6.7. Assi!:!:nment of Association Assets .................... 21
i
Section 6.8.
Section 6.9.
Section 6.10.
Section 6.11.
Section 6.12.
Section 6.13.
Section 6.14.
Section 6.15.
Association to Maintain Its Existence .......
Prohibition Against Assignment of Agreement . .
Notice of Fee Upon Transfer of Housing Units
Repair and Replacement Policy . . . . . . . .
Increases in Assessments . . . . . . . . . . . . . . . . .
Intentionally Omitted . . . . . . . . . . . . . . . . . . .
FHA/HUD Insurance . . . . . . . . . . . . . . . . . . .
Experienced Property Manager . . . . . . . . . .
22
22
22
23
23
23
. . . . . . . .. 23
23
ARTICLE VII - EVENTS OF DEFAULT ..
24
Section 7.1. Events of Default Defined . . . . .
Section 7.2. Remedies on Default ... . . . . .
Section 7.3. No Remedy Exclusive .......
Section 7.4. No Additional Waiver Implied by One Waiver
24
24
24
25
ARTICLE vm - ADDITIONAL PROVISIONS. . . . . . . . . . . . . . .
Section 8. 1.
Section 8.2.
Section 8.3.
Section 8.4.
Section 8.5.
Section 8.6.
Section 8.7.
Section 8.8.
Section 8.9.
SCHEDULES:
Schedule A:
Schedule B:
Schedule C:
Schedule D:
25
Conflict of Interests: City Representatives Not Individually Liable. 25
Equal Employment Opportunity ......... 25
Provisions Not Merged With Deed. ...... 25
Titles of Articles and Sections ... 25
Notices and Demands . . . . . . . . . . . . 25
Counterparts ..................... 26
Recording . . . . . . . . . . . . . . .. ....... 26
Binding Act 26
Amendment . . . . . . . . . . . . . .. ....... 26
Property
Housing Improvements
Intentionally left blank
Disbursement Requisition of Association's Authorized Representative
ii
DEVELOPMENT AGREEMENT
TillS AGREEMENT, made on the 27th day of April, 1998, by and between the CITY
OF NEW HOPE, a Minnesota municipal corporation (the "City") and ROCKFORD OWNERS
ASSOCIATION, a Minnesota nonprofit corporation (the "Association").
WITNESSETH:
WHEREAS, the City is authorized under Minn. Stat. Chapter 428A (the "Act") to
establish by ordinance a housing improvement area within which housing improvements are
made or constructed and the costs of the improvements are paid in whole or in part by housing
improvements special assessment fees imposed against the benefiting properties within the area;
and
WHEREAS, by Ordinance No. 98-02 adopted January 12, 1998 (the "Enabling
Ordinance "), the Council established a Housing Improvement Area for the Sandpiper Cove
Townhome Development in order to facilitate certain improvements to 36 individual townhome
units within said development, which property is legally described in Schedule A hereto and is
hereafter referred to as the ("Property"); and
WHEREAS, by Resolution No. 98-50 adopted March 23, 1998 (the "Fee Resolution")
the City Council imposed a housing improvement special assessment fee on Housing Units (as
hereinafter defined) in the Sandpiper Cove Townhome Housing Improvement Area in order to
finance certain housing improvements in that area; and
WHEREAS, the Act authorizes the City to issue bonds in the amount necessary to defray
the expenses to be incurred in making the housing improvements, which bonds are payable
primarily from proceeds of the housing improvement special assessment fee imposed under the
Fee Resolution and may be further secured by the pledge of the City's full faith, credit and
taxing power; and
WHEREAS, it is the intention of the City to initially finance the cost of the
improvements internally with funds from the City's Temporary Financing Construction Fund in
that the proposed total construction costs for the project are too small for a separate bond issue.
However, the City intends to group these costs with other City bondable costs and sell bonds
to reimburse the Temporary Financing Construction Fund on or before March 31, 1999 as
authorized by the Act.
WHEREAS, prior to adoption of the Fee Resolution by the City Council, the Association
submitted to the City a financial plan in accordance with the Act that provides for the
Association to finance maintenance and operation of the common elements in the Sandpiper Cove
Townhome Development and a long-range plan to conduct and finance capital improvements
therein; and
1
WHEREAS, the City believes that development of the improvements to the Property
pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best
interests of the City and health, safety, morals and welfare of its residents, and in accord with
the public purposes and provisions of the applicable State and local laws and requirements under
which the Sandpiper Cove Townhome Housing Improvement Area has been undertaken.
WHEREAS, the Association intends to complete the housing improvements as further
described in this Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of
the parties hereto, each of them does hereby covenant and agree with the other as follows:
ARTICLE 1
Definitions
Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears
from the context:
"Act" means Minn. Stat. SS428A.ll through 428A.21 (Laws 1996).
"Actual Construction Cost" means that amount necessary to complete all housing
improvements as set forth in Schedule B not to exceed $500,000.00.
"Administrative, Legal and Finance Cost" means 15 % of the actual construction costs.
"Annual Debt Service" means the amount of principal and interest payable on the Bonds
on February 1 and August 1 of each year.
"Association" means Rockford Owners Association or its permitted successors and
assIgns.
"Association's Authorized Representative" means the property manager retained by the
Association to manage the Property.
"Agreement" means this Agreement, as the same may be from time to time modified,
amended or supplemented.
"Bonds" means the general obligation bonds or obligations issued by the City in
connection with the Housing Improvement Area pursuant to the Act, and any bonds or
obligations issued to refund any Bonds.
"Bond Fund" means the debt service fund for the Bonds to be established under the Bond
Resolution.
2
"Bond Resolution" means the resolution to be approved by the Council awarding the sale
and establishing the terms of the Bonds.
"City" means the City of New Hope, Minnesota.
"Certificate of Completion" means the certification provided to the Association, pursuant
to Section 4.4 of this Agreement.
"Common Area" means the common area as defined in the Declaration.
"Completion Date" means the date of actual completion of the Housing Improvements
as certified by the City Building Official pursuant to Section 4.4 hereof.
"Construction Contacts" means the contract(s) between the Contractor(s) and the
Association to complete the Housing Improvements in accordance with the Construction Plans.
"Construction Plans" means the plans, specifications, drawings and related documents
on the construction work to be performed by the Association on the Property which shall be as
detailed as the City may reasonably request to allow it to ascertain the nature and quality of the
proposed construction work.
"Contractor" means any person, including subcontractors, who shall be engaged to work
on, or to furnish materials and supplies for the Housing Improvements.
"Council" means the City Council of the City.
"County" means the County of Hennepin, Minnesota.
"Declaration" means the Amended and Restated Declaration of Covenants, Conditions,
Restrictions and Easements for Rockford Owners Association dated
"Draw Request" means the form, substantially in the form of Schedule D attached
hereto, which is submitted to the City when a disbursement is requested and which is referred
to in Section 3.4 hereof.
"Enabling Ordinance" means Ordinance No. 98-02 adopted by the Council on January
12, 1998, which establishes the Housing Improvement Area.
"Engineer" means Construction Consulting and Inspections, Limited, the engineers
selected by the Association to prepare or cause to be prepared the Construction Plans for the
Housing Improvements.
"Engineers Contract" means the agreement by and between the Association and the
Engineer pertaining to preparation of the Construction Plans and supervision of construction.
3
"Event of Default" means an action by the Association listed in Article VII of this
Agreement.
"Fee" means the housing improvement special assessment fee in connection with the
Housing Improvements imposed on all Housing Units in the Housing Improvement Area
pursuant to the Fee Resolution.
"Fee Resolution" means Resolution No. 98-50, adopted by the Council on March 23,
1998, which imposes the Fee and any subsequent resolution amended Resolution No. 98-50.
"Fee Revenues" means all proceeds of the Fee payable to the City.
"Financial Advisors" means Reserve Data Analysis or any successor Independent
financial advisory firm retained by the City.
"Financial Plan" means the Financial Plan prepared by the Financial Advisors dated
March 17, 1998.
"Fiscal Year" means any year commencing January 1 and ending December 31.
"Housing Improvements" means the improvements to the Property
as set forth in Schedule B hereof.
"Housing Improvement Area" means the real property located within the Sandpiper
Cove Townhome Housing Improvement Area described in Schedule A.
"Housing Unit" means real property and improvements thereon within the Housing
Improvement Area, consisting of one lot on which a dwelling unit is located that is occupied by
a person or persons for use as a residence.
"Independent" when used with reference to an attorney, engineer, architect, certified
public accountant, or other professional person, means a person who (i) is in fact independent,
(ii) does not have any material financial interest in the Association or the transaction to which
his or her certificate or opinion relates (other than the payment to be received for professional
services rendered), and (iii) is not connected with the City or the Association as an officer,
director or employee.
"Inspecting Engineer" means the Engineer.
"Management Consultant" means a person or entity, experienced in the study and
management of multi-unit rental housing and having a favorable reputation throughout the United
States or the State of Minnesota for skill and experience in such work and, unless otherwise
specified herein, retained or employed by the Association and acceptable to the City whose
acceptance shall not be unreasonably withheld.
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"Maturity Date" means the date the Bonds have been fully paid, defeased or redeemed
in accordance with their terms.
"Mortgage" means any mortgage made by the Association which is secured, in whole
or in part, with the Property and which is a permitted encumbrance pursuant to the provisions
of Section 6.9 of this Agreement.
"Net Revenues Available for Debt Service" means, as of the date of calculation, the
balance in the Bond Fund and any other fund into which Fee Revenues have been deposited as
of the date of calculation, less the amount of fees, as estimated by the City's Financial Advisor,
that are anticipated to be payable by the City in connection with the Bonds on or before the next
Payment Date to the City's Financial Advisor, the registrar for the Bonds, and the paying agent
for the Bonds.
"Payment Date" means any date on which the principal, interest and premium, if any,
is due and payable on the Bonds.
"Permitted Investments" means investment legally permitted for the City's funds.
"Project Fund" means the City's Temporary Financing Construction Fund which will
be used to finance construction of the housing improvements and which will be reimbursed by
the proceeds from the sale of bonds.
"Property" means the real property described in Schedule A of this Agreement.
"State" means the State of Minnesota.
"Total Construction Cost" means the actual construction cost plus the administrative,
legal and finance cost.
"Unavoidable Delays" means delays beyond the reasonable control of the party seeking
to be excused as a result thereof which are the direct result of strikes, other labor troubles, fire
or other casualty to the Housing Improvements or the Property, litigation commenced by third
parties which, by injunction or other similar judicial action, directly results in delays, or acts
of any federal, state or local governmental unit (other than the City in exercising its rights under
this Agreement) which directly result in delays. Unavoidable Delays shall not include delays
in the Association's obtaining of permits or governmental approvals necessary to enable
construction of the Sandpiper Cove Townhome development by the dates such construction is
required under Section 4.3 of this Agreement.
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ARTICLE IT
Representations and Warranties
Section 2.1. Representations by the City. The City makes the following representations
as the basis for the undertakings on its part herein contained:
a. The City is a municipal corporation under the laws of the State and has
the power to enter into this Agreement and carry out its obligations hereunder.
b. The undertaking of the Housing Improvements and the issuance by the
Municipality of the Bonds are authorized by the Act.
c. On January 12, 1998, after receipt of petitions by owners of at least 25
percent of the Housing Units in the Housing Improvement Area and after due publication
and mailing of notice of hearing, the Council held a public hearing on the adoption of
the Enabling Ordinance and adopted said Enabling Ordinance.
d. On March 23, 1998, after receipt of petitions by owners of at least 25
percent of the Housing Units in the Housing Improvement Area and after due publication
and mailing of notice of hearing, the Council held a public hearing on the adoption of
the Fee Resolution and adopted the Fee Resolution.
e. The periods for veto of both the Enabling Ordinance and the Fee
Resolution have expired without objection by owners of at least 35 percent of the
Housing Units in the Housing Improvement Areas all in accordance with the Act.
f. The City proposes to internally finance the cost of the Housing
Improvements through its Temporary Financing Construction Fund. There is currently
$600,000.00 in the Temporary Financing Construction Fund earmarked to cover the total
construction costs for the housing improvements. This money shall be disbursed to the
Association in accordance with Article III of this "Agreement". However, it is the right
of the City, acknowledged by the Association, to issue bonds as provided by the Act to
reimburse its Temporary Financing Construction Fund in an amount equal to the total
cost of the housing improvements. Said costs shall include the actual construction costs
of the improvements and administrative, finance and legal costs equal to 15 % of the
actual construction costs, all of which shall not exceed $600,000.00. Included in the
administrative, finance and construction costs shall be the building permit fee, all bond
issuance costs and all of the City's legal and other private consulting costs. However,
the State's surcharge on the building permit fee equal to .0005 % of the valuation of the
housing improvements shall not be included in the referenced costs herein and must be
paid separately by the Association.
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g. There will be an Amendment to the Fee Resolution No. 98-50 after final
construction costs are determined on the project which shall implement the following
changes:
i. It is estimated that actual construction costs will not exceed
$500,000.00. If actual construction costs are less than $500,000.00 the housing
improvement special assessment fee will be reduced on a pro rata basis to each
unit within the housing improvement area in an amount equal to the amount of
the reduction. This will also result in an amount equal to corresponding reduction
to the City's fees for administrative, legal and finance costs since said fees are
based on 15 % of the actual construction costs.
ii. There will be an Amendment to Section 2.02 of Fee Resolution
No. 98-50 extending the time for prepayment of the Housing Improvement Fee
until the close of the City's business day on November 20, 1998.
Ill. There will be an Amendment to Section 2.03 of Fee Resolution
No. 98-50 changing the interest initiation date on the fee to January 1, 1999.
iv. The intent of these Amendments to Fee Resolution No. 98-50
referenced above is to waive the cost of capitalized interest on the Association's
use of the City's interim construction financing prior to the sale of bonds
authorized by the Act and conform the interest calculation to the formula used by
the City in determining the total fee to each unit set out in Exhibit A to
Resolution No. 98-50. The amendments will also permit prepayment on actual
rather than estimated construction costs. Further, section (g) above constitutes
a waiver by the City of the building permit fee. These charges are being made
in consideration for making the housing improvement special assessment fee
subject to an 8 % interest rate in accordance with the City's interest rate policy
on all special assessment improvement projects.
v. The parties to this Agreement acknowledge and agree the City will
finance, on an interim basis, the housing improvements proposed by this
Agreement with its Temporary Construction Financing Fund. It is further agreed
that the total project amount shall not exceed $600,000.00. The total project
amount shall be calculated and disbursed as (i) actual construction costs payable
to the Association's contractors for construction of the housing improvements set
forth on Schedule B attached hereto, and (ii) administrative, legal and financing
costs payable to the City. It is also understood and agreed by the parties that the
City's obligation to finance actual construction costs shall not exceed $500,000.00
and that the administrative, legal and financing fees payable to the City by the
Association shall equal 15 % of the actual construction costs;
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h. There is no litigation pending or to the best of its knowledge, threatened
against the City relating to the Housing Improvements or the use of the Temporary
Construction Financing Fund or questioning the powers or authority of the City under
the Act, or questioning the corporate existence or boundaries of the City or the title of
any of the present officers of the City to their respective offices.
i. The execution, delivery and performance of this Agreement does not
violate any agreement or any court order or judgment in any litigation to which the City
is a party or by which it is bound.
Section 2.2. Representations and Warranties by the Association. The Association
represents and warrants that:
a. The Association is a nonprofit corporation, duly organized and in good
standing under the laws of the State of Minnesota, is not in violation of any provisions
of its articles of incorporation, bylaws or the laws of the State, is duly authorized to
transact business within the State, has power to enter into this Agreement and has duly
authorized the execution, delivery and performance of this Agreement by proper action
of its board of directors.
b. The Association will construct, operate and maintain the Housing
Improvements in accordance with the terms of this Agreement, the Financial Plan, and
all local, state and federal laws and regulations (including, but not limited to,
environmental, zoning, building code and public health laws and regulations).
c. The Housing Improvements constitute a permitted use under applicable
zoning laws.
d. The Association has received no notice or communication from any local,
state or federal official that the activities of the Association or the City in the Housing
Improvement Area may be or will be in violation of any environmental law or regulation
(other than those notices or communications of which the City is aware). The Association
is not aware of any facts the existence of which would cause it to be in violation of or
give any person a valid claim under any local, state or federal environmental law,
regulation or review procedure.
e. The Association will construct the Housing Improvements in accordance
with all local, state or federal energy-conservation laws or regulations.
f. The Association will obtain, in a timely manner, all required permits,
licenses and approvals, and will meet in a timely manner, all requirements of all
applicable local, state and federal laws and regulations which must be obtained or met
before the Housing Improvements may be lawfully constructed.
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g. Neither the execution and delivery of this Agreement, the consummation
of the transactions contemplated hereby, nor the fulfillment of or compliance with the
terms and conditions of this Agreement is prevented, limited by or conflicts with or
results in a breach of, the terms, conditions or provisions of any corporate restriction or
any evidences of indebtedness' agreement or instrument of whatever nature to which the
Association is now a party or by which it is bound, or constitutes a default under any of
the foregoing.
h. Whenever any Event of Default occurs and if the City shall employ
attorneys or incur other expenses for the collection of payments due or to become due
or for the enforcement of performance or observance of any obligation or agreement on
the part of the Association under this Agreement, the Association agrees that it shall,
within ten days of written demand by the City pay to the City the reasonable fees of such
attorneys and such other expenses so incurred by the City.
ARTICLE ill
Construction Finance: Disbursement of Proceeds
Section 3.1. Housing hnprovement Funds.
a. The parties acknowledge and agree the interim construction financing for
the actual housing improvements will be paid from the City's Temporary Financing
Construction Fund. The parties further acknowledge and agree the City will sell bonds
as authorized by the Act to reimburse the City for its interim financing from the
Temporary Financing Construction Fund. The bond sale shall be equal to the total
project amount as stated in ~2.1(b) and (9) of this Agreement. The fee revenue
established by Resolution No. 98-50 will be used to pay the City's debt service on the
bonds. The Association acknowledges and agrees however, the total project amount will
be based on an 8 % interest rate and the actual interest rate on the Bond Sale will not
cause a reduction to the fees charged against the individual units as established by
Resolution No. 98-50 or any subsequent resolution amending Resolution 98-50; provided
that the Total Project Amount may be such lesser amount mutually agreed by the
Association and the City in the event the cost of the Housing Improvements and the total
Fee is reduced in accordance with Section 2.1(g) of this Agreement.
b. Payment to the City of its administrative, legal and financing costs shall
occur immediately upon the City's receipt of proceeds from the bond issuance in addition
to the reimbursement for actual construction costs paid from the Temporary Financing
Construction Fund.
Moneys in the Temporary Financing Construction Fund shall be subject to withdrawal
from time to time only for the purposes of paying the actual construction costs of the Housing
Improvement incurred by the Association for such costs. None of the Funds in the Project Fund
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shall be used by the Association for any purposes other than payment or reimbursement of actual
construction costs of the Housing Improvements.
Section 3.2. Conditions Precedent to Initial Disbursement. The obligation of the City
to make the initial disbursement hereunder shall be subject to the condition precedent that the
Association shall be in compliance with the conditions contained in Section 3.3 hereof and the
further condition precedent that the City shall have received, on or before the date of such initial
disbursement hereunder, the following:
a. A copy of the Construction Plans, approved by the City Building Official
in accordance with Section 4.2 hereof and in detail sufficient to enable the Association
to authorize commencement of construction of the Housing Improvements, certified by
the Engineer and the Association.
b. Copies of the Engineers Contact, the Construction Contract and such
subcontracts as may be reasonably requested from time to time by the City.
c. A sworn construction statement duly executed by the Association and the
Engineer for the Housing Improvements showing estimates of all anticipated Contractors'
contract or subcontracts for specific portions of the work on the Housing Improvements
and the amounts anticipated to become due each such Contractor, including all costs and
expenses of any kind incurred and to be incurred in construction of the Housing
Improvements.
d. A total project cost statement, incorporating estimates of the construction
costs as shown on the sworn construction statement described in paragraph (c) above and
setting forth all other costs and expenses of any kind anticipated to be incurred in
completion of the Housing Improvements and sworn to by the Association to be a true,
complete and accurate account of all costs actually incurred and a reasonably accurate
estimate of all costs to be incurred in the future.
e. Copies of any licenses and permits which the Inspecting Engineer certifies
as necessary and sufficient to construct the Housing Improvements, including all
foundation and grading permits and building permits from time to time necessary for
such construction.
Section 3.3. Further Conditions Precedent to All Disbursements. The obligation of
the City to make the initial disbursement hereunder and each subsequent disbursement hereunder
shall be subject to the condition precedent that the Association shall be in compliance with all
conditions set forth in Section 3.2. hereof, and the further conditions precedent that on the date
of such disbursement:
a. The City has received a written statement from the Association's
Authorized Representative certifying with respect to each payment: (I) that none of the
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items for which the payment is proposed to be made has formed the basis for any
payment theretofore made from the Project Fund; (II) that each item for which the
payment is proposed to be made is or was necessary in connection with the Housing
Improvements; and (III) that following such proposed payment sufficient moneys will
remain on deposit in the Project Fund to provide for payment in full of all remaining
costs estimated to be incurred in order to complete the Housing Improvements. In the
case of any contract providing for the retention of a portion of the contract price, there
shall be paid from the Project Fund only the net amount remaining after deduction of any
such portion.
b. No Event of Default under this Agreement or event which would constitute
such an Event of Default but for the requirement that notice be given or that a period of
grace or time elapse, shall have occurred and be continuing.
c. No determination shall have been made by the Inspecting Engineer that the
amount of undisbursed moneys and any other funds deposited in the Project Fund by the
Association or to be deposited under Section 3.7 hereof, are insufficient to pay expenses
of any kind which reasonably may be anticipated in connection with the completion of
the Housing Improvements; or if such a determination has been made and notice thereof
sent to the Association, the Association has deposited the necessary funds with the City
in accordance with Section 3.7 hereof.
d.
satisfied.
The disbursement requirements set forth in Section 3.4 hereof have been
e. If requested by the City, the City shall be furnished with a statement of
the Association and of any Contractor, in form and substance satisfactory to the City
setting forth the names, addresses and amount due or to become due as well as the
amounts previously paid to every Contractor, subcontractor, person, firm or corporation
furnishing materials or performing labor entering into the construction of any part of the
Housing Improvement.
f. No license or permit necessary for the construction of the Housing
Improvements shall have been revoked or the issuance thereof subjected to challenge
before any court or other governmental authority having or asserting jurisdiction
thereover.
Section 3.4. Requests for Disbursement.
a. Whenever the Association desires a disbursement to be made hereunder,
which shall be no more often than monthly, the Association shall submit to the City a
Draw Request, duly executed on behalf of the Association, setting forth the information
requested therein. Disbursements will be made the Wednesday following the second
Monday of each month, provided the Draw Request is received by the 20th day of the
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preceding month. Each Draw Request shall be limited to amounts equal to (i) the total
of such costs actually incurred and owing (or previously paid by the Association to the
date of such Draw Request for work performed on and materials used in the Housing
Improvements, plus (ii) the cost of materials and equipment not incorporated in the
Property, but delivered to and suitably stored at the Property; less, (iii) (a) a minimum
of five percent, and (b) at all times less prior disbursements. Notwithstanding anything
herein to the contrary, no disbursements for materials stored at the Property will be
authorized unless the Association shall provide adequate security for such storage. Each
Draw Request shall constitute a representation and warranty by the Association that all
representations and warranties set form in this Agreement are true and correct as of the
date of such Draw Request.
b. At the time of submission of each Draw Request, the Association shall
submit the following to the City:
i. A written lien waiver from each Contractor for work done and
materials supplied by it which were paid for pursuant to the next preceding Draw
Request.
ii. Such other supporting evidence as may be requested by the City to
substantiate all payments which are to be made out of the relevant Draw Request
and/ or to substantiate all payments then made with respect to the Housing
Improvements.
c. If on the date a disbursement is desired, the Association has performed all
of its agreements and complied with all requirements theretofore to be performed or
complied with hereunder, including satisfaction of all applicable conditions precedent
contained in Article III hereof, upon approval by the Council the City shall make a
disbursement to the Association in the amount of the requested disbursement, or such
lesser amount as shall be approved.
Section 3.5. Conditions Precedent to the Final Disbursement. The making of the final
disbursement by the City shall be subject to the condition precedent that the Association shall
be in compliance with all conditions set forth in Sections 3.2 through 3.4 hereof and, further,
that the following conditions shall have been satisfied prior to the Completion Date:
a. The Housing Improvements have been substantially completed in
accordance with the Construction Plans and Article IV hereof, and the City shall have
received a certificate of completion from the Association and the Inspecting Engineer,
certifying that to the best of their knowledge:
i. Work on the Housing Improvements has been completed in
accordance with the Construction Plans and all other labor, services, materials
and supplies used in such work have been paid for;
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ii. The completed Housing Improvements conform with all applicable
building laws and regulations of the governmental authorities having jurisdiction
over the Housing Improvements; and
lll. Lien waivers submitted to the City under Section 3.5(c) cover all
labor, services, materials and supplies in connection with the Housing
Improvements.
b. The City shall have received satisfactory evidence that all work requiring
inspection by municipal or other governmental authorities having jurisdiction has been
duly inspected and approved by such authorities and by the bureau, corporation or office
having jurisdiction, and that all requisite certificates of occupancy and other approvals
have been issued.
c. The City shall have received a lien waiver from each Contractor for all
work done and for all materials furnished by it for the Housing Improvements.
Section 3.6. Waiver. The City may, in its sole discretion, without notice to or consent
from any other party, waive any or all conditions for disbursement set forth in this Article.
However, the making of any disbursement prior to fulfillment of any condition therefor shall not
be construed as a waiver of such condition, and the City shall have the right to require
fulfillment of any and all such conditions prior to authorizing any subsequent disbursement.
Section 3.7. Deposit of Funds by Association. If the City shall at any time in good
faith determine that the actual construction costs will exceed $500,000.00 to pay all costs and
expenses of any kind which reasonably may be anticipated in connection with the completion of
the Housing Improvements and shall thereupon send written notice thereof to the Association
specifying the additional amount required to be deposited by the Association to provide sufficient
funds to complete the Housing Improvements, the Association agrees that it will, within ten (10)
calendar days of receipt of any such notice, deposit with the City the amount of funds specified
in the notice and shall authorize the City to disburse such funds prior to disbursement of
additional money in the City's Temporary Financing Construction Fund or actual construction
costs.
ARTICLE IV
Construction of Housing Improvement
Section 4.1. Construction of Housing Improvements. The Association agrees that it
will construct the Housing Improvements on the Property in accordance with the approved
Construction Plans and will operate and maintain, preserve and keep the Housing Improvements
or cause the Housing Improvements to be maintained, preserved and kept with the appurtenances
and every part and parcel thereof, in good repair and condition, all in accordance with Article
VI hereof.
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Section 4.2. Construction Plans.
a. Before disbursement of any funds from the Temporary Financing
Construction Fund, the Association shall submit the Construction Plans to the City
Building Official, who shall review such plans on behalf of the City. The Construction
Plans shall provide for the construction of the Housing Improvements, and shall be in
conformity with this Agreement, and all applicable State and local laws and regulations.
The City Building Official will approve the Construction Plans in writing if: (i) the
Construction Plans conform to the terms and conditions of this Agreement; (ii) the
Construction Plans conform to all applicable federal, state and local laws, ordinances,
rules and regulations; (iii) the Construction Plans are adequate to provide for construction
of the Housing Improvement; and (iv) no Event of Default has occurred. No approval
by the City Building Official shall relieve the Association of the obligation to comply
with the terms of this Agreement, applicable federal, state and local laws, ordinances,
rules and regulations, or to construct the Housing Improvements in accordance therewith.
No approval by the City Building Official shall constitute a waiver of an Event of
Default. If approval of the Construction Plans is requested by the Association in writing
at the time of submission, such Construction Plans shall be deemed approved unless
rejected in writing by the City Building Official, in whole or in part. Such rejections
shall set forth in detail the reasons therefore, and shall be made within 30 days after the
date of their receipt by the City Building Official. If the City Building Official rejects
any Construction Plans in whole or in part, the Association shall submit new or corrected
Construction Plans within 30 days after written notification to the Association of the
rejection. The provisions of this Section relating to approval, rejection and resubmission
of corrected Construction Plans shall continue to apply until the Construction Plans have
been approved by the City Building Official. The City Building Official's approval shall
not be unreasonably withheld. Said approval shall constitute a conclusive determination
that the Construction Plans (and the Housing Improvements, constructed in accordance
with said plans ) comply to the City Building Official's satisfaction with the provisions
of this Agreement relating thereto.
b. If the Association desires to make any material change in the Construction
Plans after their approval by the City Building Official, the Association shall submit the
proposed change to the City Building Official for approval. For the purposes of this
Section, a "material change" means any change that:
i. Increases or decreases the total cost of the Housing Improvements
by more than $10,000.00; or
ii. Involves any change in construction materials or design that
reasonably requires review for compliance with state and local law and
regulations. If the Construction Plans, as modified by the proposed change,
conform to the requirements of this Section 4.2 of this Agreement with respect
to such previously approved Construction Plans, the City Building Official shall
14
approve the proposed change and notify the Association in writing of its approval.
Such change in the Construction Plans shall, in any event, be deemed approved
by the City Building Official unless rejected, in whole or in part by written notice
by the City Building Official to the Association, setting forth in detail the reasons
therefor. Such rejection shall be made within ten (10) days after receipt of the
notice of such change. The City Building Official's approval of any such change
in the Construction Plans will not be unreasonably withheld.
Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Association shall complete the construction of the Housing Improvement by October
15, 1998. All work with respect to the Housing Improvements to be constructed or provided
by the Association on the Property shall be substantially in conformity with the Construction
Plans as submitted by the Association and approved by the City.
The Association agrees for itself, its successors and assigns and every successor in
interest to the Property, or any part thereof, that the Association, and such successor and
assigns, shall promptly begin and diligently prosecute to completion the construction of the
Housing Improvements thereon, and that such construction shall in any event be commenced and
completed within the period specified in this Section 4.3 of this Agreement. Until construction
of the Housing Improvements has been completed, the Association shall make reports, in such
detail and at such times as may reasonably be requested by the City as to the actual progress of
the Association with respect to such construction.
Section 4.4. Certification of Completion.
a. Promptly after substantial completion of the Housing Improvements in
accordance with those provisions of the Agreement relating solely to the obligations of
the Association to construct the Housing Improvements (including the dates for beginning
and completion thereot), the City will furnish the Association with an appropriate
instrument so certifying. Such certification by the City shall be a conclusive
determination of satisfaction and termination of the agreements and covenants in the
Agreement with respect to the obligations of the Association, and its successors and
assigns, to construct the Housing Improvements and the dates for the beginning and
completion thereof. Such certification and such determination shall not constitute
evidence of compliance with or satisfaction of any obligation of the Association under
Article VI hereof.
b. The certificate provided for in this Section 4.4 of this Agreement shall be
in such form as will enable it to be recorded in the proper office for the recordation of
deeds and other instruments pertaining to the Property. If the City shall refuse or fail
to provide any certification in accordance with the provisions of this Section 4.4 of this
Agreement, the City shall, within thirty (30) days after written request by the
Association, provide the Association with a written statement, indicating in adequate
detail in what respects the Association has failed to complete the Housing Improvements
15
in accordance with the provisions of the Agreement, or is otherwise in default, and what
measures or acts it will be necessary, in the opinion of the City, for the Association to
take or perform in order to obtain such certification.
c. The construction of the Housing Improvements shall be deemed to be
substantially completed as determined by the City Building Official, who may execute
the certificate of completion on behalf of the City.
ARTICLE V
Insurance
Section 5.1. Insurance.
a. The Association will provide and maintain or cause to be provided and
maintained at all times during the process of constructing the Housing Improvements an
All Risk Broad Form Basis Insurance Policy and, from time to time during that period,
at the request of the City, furnish the City with proof of payment of premiums on
policies covering the following:
i. At any time that construction is taking place at the Property,
Builder's risk insurance, written on the so-called "Builder's Risk - Completed
Value Basis," in an amount equal to One hundred percent (100%) of the insurable
value of the Housing Improvements at the date of completion, and with coverage
available in nonreporting form on the so-called "all risk" form of policy provided
that the Association need not provide such insurance at any time that the
Association's existing hazard insurance policy provides coverage equivalent to the
builders risk insurance coverage. The interest of the City shall be protected in
accordance with a clause in form and content satisfactory to the City;
ii. Comprehensive general liability insurance (including Operations,
contingent liability, operations of subcontractors, completed operations and
contractual liability insurance) together with an Owner's Contractor's Policy with
limits against bodily injury and property damage of not less than $1,000,000.00
for each occurrence and $2,000,000.00 in the aggregate (to accomplish the above
required limits, an umbrella excess liability policy may be used); and
ili. Workers' compensation insurance provided by all Contractors.
b. Upon completion of construction of the Housing Improvements, the
Association shall maintain, or cause to be maintained, at its cost and expense, and from
time to time at the request of the City, shall furnish proof of the payment of premiums
on, insurance as follows:
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i. Insurance against loss and/or damage to the Property and the
Housing Improvements under a policy or policies covering such risks as are
ordinarily insured against by similar businesses.
ii. Comprehensive general public liability insurance, including
personal injury liability (with employee exclusion deleted), against liability for
injuries to persons and/or property, in the amount for each occurrence and for
each year of $1,000,000.00 and shall be endorsed to show the City as additional
insured.
lll. Such other insurance, including workers' compensation insurance
respecting all employees of the Association, in such amount as is customarily
carried by like organizations engaged in like activities of comparable size and
liability exposure; provided that the Association may be self-insured with respect
to all or any part of its liability for workers' compensation.
c. All insurance required in Article V of this Agreement shall be taken out
and maintained in responsible insurance companies selected by the Association which are
authorized under the laws of the State to assume the risks covered thereby. Upon request,
the Association will deposit annually with the City policies evidencing all such insurance,
or a certificate or certificates or binders of the respective insurers stating that such
insurance is in force and effect. Unless otherwise provided in this Article V of this
Agreement each policy shall contain a provision that the insurer shall not cancel nor
modify it in such a way as to reduce the coverage provided below the amounts required
herein without giving written notice to the Association and the City at least thirty (30)
days before the cancellation or modification becomes effective. In lieu of separate
policies, the Association may maintain a single policy, blanket or umbrella policies, or
a combination thereof, having the coverage required herein, in which event the
Association shall deposit with the City a certificate or certificates of the respective
insurers as to the amount of coverage in force upon the Housing Improvements.
d. The Association agrees to notify the City immediately in the case of
damage exceeding $100,000.00 in amount to, or destruction of, the Property, the
Housing Improvements or any portion thereof resulting from fire or other casualty. In
such event the Association will forthwith repair, reconstruct and restore the Housing
Improvements to substantially the same or an improved condition or value as it existed
prior to the event causing such damage and, to the extent necessary to accomplish such
repair, reconstruction and restorations the Association will apply the Net Proceeds of any
insurance relating to such damage received by the Association to the payment or
reimbursement of the costs thereof.
The Association shall complete the repair, reconstruction and restoration of the
Housing Improvements and the Property, whether or not the Net Proceeds of insurance
received by the Association for such purposes are sufficient to pay for the same. Any
17
Net Proceeds remaining after completion of such repairs, construction and restoration
shall be the property of the Association.
e. The Association and the City agree that all of the insurance provisions set
forth in this Article V shall terminate upon termination of this Agreement.
Section 5.2. Subordination. Notwithstanding anything to the contrary contained in this
Article V, the rights of the City with respect to the receipt and application of any proceeds of
insurance shall, in all respects, be subject and subordinate to the rights of any lender holding a
mortgage on a Housing Unit.
ARTICLE VI
Special Covenants
Section 6.1. No Warrantv of Condition or Suitabilitv Indemnification.
a. The City does not make any warranty, either express or implied, as to the
design or capacity of the Housing Improvements, as to the suitability for operation of the
Housing Improvements or that they will be suitable for the Associations purposes or
needs. The Association releases the City from, agrees that the City shall not be liable for,
and agrees to hold the City, its Council and its respective officers and employees,
harmless against any claim, cause of action, suit or liability for any loss or damage to
property or any injury to or death of any person that may be occasioned by any cause
whatsoever pertaining to the Housing Improvements or the Property or the use thereof.
b. The Association further agrees to indemnify and hold harmless the City
its officers and employees, against any and all losses, claims, damages or liability to
which the City its officers and employees, may become subject under any law arising out
of any act, omission, representation or misrepresentation of the Association in connection
with the issuance and sale of the Bonds and the carrying out of the transactions
contemplated by this Agreement, and to reimburse the City, its officers and employees,
. for any out-of pocket legal and other expenses (including reasonable attorney fees)
incurred by the City, its officers and employees, in connection with investigation of any
such losses, claims, damages or liabilities or in connection with defending any actions
relating thereto. The City agrees, at the request and expense of the Association, to
cooperate in the making of any investigation in defense of any such claim and promptly
to assert any or all of the rights and privileges and defenses which may be available to
the City. The provisions of this Section shall survive the payment and redemption of the
Bonds.
c. All covenants, stipulations, promises, agreements and obligations of the
City contained herein shall be deemed to be the covenants, stipulations, promises,
18
agreements and obligations of the City and not of any governing body member, officer,
agent, servant or employee of the City in the individual capacity thereof.
Section 6.2. Financial Statements. The Association agrees to furnish to the City, by
no later than 120 days after the end of each Fiscal Year, beginning with Fiscal Year 1999, until
a copy of the annual audited financial statements of the Association for the preceding Fiscal
Year, including a balance sheet and operating statements, audited by an Independent certified
public accountant. Such financial statements shall be accompanied by a separate written
statement from such Independent certified public accountant preparing such report that such
Independent accountant has obtained no knowledge of any default by the Association in the
fulfillment of any of the terms, covenants, provisions or conditions of this Agreement or if such
accountant shall have obtained knowledge of any such default the accountant shall disclose in
such statement the default and the nature thereof, but such accountant shall not be liable directly
or indirectly to any party for failure to obtain knowledge of any default the Association and the
City agree and understand that compliance with this Section constitutes compliance with Section
1.807 of the Enabling Ordinance.
Section 6.3. Financial Plan: Annual Reports. The Association agrees to furnish to the
City, by no later than 120 days after the end of each Fiscal Year:
a. An updated Financial Plan for the Property prepared by a Management
Consultant acceptable to the City, in substantially the form of the Financial Plan dated
March 17, 1998, and providing plans for capital improvements to the Property and
projected Association dues. The updated Financial Plan shall include a schedule for the
replacement reserves required to maintain the Common Areas and the other portions of
the Property which the Association is obligated to maintain pursuant to the Declaration.
The Financial Plan shall also include the proposed increases in assessments payable by
Owners of the Housing Units. The City shall have thirty (30) days after receipt to
approve or reject the updated Financial Plan, which approval shall not be unreasonably
withheld or denied. If the City rejects the updated Financial Plan the City shall give
written reasons for the rejection to the Association and the Association shall submit a
revised updated Financial Plan to the City which the City shall review and approve or
reject within ten (10) days. The above procedure shall be followed until the City
approves the updated Financial Plan, provided that if the City reasonably withholds its
approval and does not approve a updated Financial Plan within six (6) months the City
may engage a consultant to prepare an updated Financial Plan and the Association shall
reimburse the City for reasonable costs incurred by the consultant in the preparation of
the updated Financial Plan.
b. A written report by an Independent engineer describing the physical
condition of the Property and the Housing Improvements as of the end of the preceding
Fiscal Year, with detail sufficient to enable the City to evaluate compliance with the
Financial Plan, the Reserve Plan and the Association's obligations under this Agreement.
19
c. A written report regarding the status of qualifying for FHA/HUD
insurance for the Housing Units in accordance with Section 6.14 hereof, the expected
date for approval, if known, and any known impediment to obtaining such qualification.
d. Evidence of compliance with Section 6.15 including a copy of the written
contract or agreement with the property manager and the property manager's resume.
Section 6.4. Records and Inspection. The Association shall maintain (i) copies of
federal, state, municipal and other licenses and permits obtained by the Association relating to
the operation of the Property and the Housing Improvements, (ii) financial books and records
reflecting the operations of the Property and the Housing Improvements, and (Hi) all other
documents, instruments, reports and records required by any provision of this Agreement or the
Financial Plan or by law relating to the Property or the affairs of the Association. The City
shall have the right to inspect all such materials, except any materials made private or
confidential by federal or state law or regulation, and the Property at all reasonable times and
to make such copies and extracts as it may desire. At the request of the City the Association
shall furnish to the City, at the Association's expense, a copy of any such materials which are
required by the City in the performance of its duties under this Agreement, the Enabling
Ordinance, the Fee Resolution or the Act.
Section 6.5. Maintenance of Property. The Association agrees it will keep or cause
to be kept the Property and the Housing Improvements in good repair and good operating
condition at its own cost. The Association shall make all repairs, replacement, and
improvements to the Property specified in the Financial Plan, as such plan may be amended in
accordance with Section 6.3 hereof.
Section 6.6. Covenant to Maintain Net Revenues Available for Debt Service.
a. In the event that thirty (30) business days before any Payment Date, the
Net Revenues Available For Debt Service are or will be less than 100 percent of the total
principal and interest due on the Bonds on such Payment Date, the City will provide
written notice to the Association of such fact and the amount of the deficiency. Within
10 days after receipt of such notice of deficiency in Net Revenue Available for Debt
Service, the Association shall be liable for and shall pay the City such deficiency.
Failure on the part of the City to provide the notice of the deficiency at the time specified
herein shall not relieve the Association of its obligation to make the required payment
10 days after the actual notice of the deficiency is provided by the City to the
Association. Failure on the part of the Association to make the required payment under
this Section within 10 days after receipt of notice thereof shall entitle the City to exercise
its remedies under this Agreement, notwithstanding any cure period provided in Article
VII hereof.
b. In the event that the Association makes any payment to the City under
Section 6.6(a) and, 10 business days before any Payment Date thereafter the City
20
determines that Net Revenues available for Debt Service, excluding the amount of all
prior payments by the Association under Section 6.6(a), are at least 100 percent of the
total principal and interest due on the Bonds on such Payment Date, the City shall
promptly return to the Association the amount of the prior payment, without interest
thereon provided that the Association has reimbursed the City for any disbursements
made out of the Special Reserve Fund pursuant to Section 3.1O(a), (b) or (e). Nothing
in this Section 6.6(b) shall be construed to relieve the obligation of the Association to
make any payment required under Section 6.6(a) hereof.
Section 6.7. Assignment of Association Assets.
a. As security for the Association's obligations under Section 6.6 hereof, the
Association does hereby bargain, sell, assign and set other unto the City, all the dues,
fees and assessments and other income of any type (the "Dues") owing to the Association
from owners of Housing Units in the Property, together with all cash, investments and
securities of any type held by the Association now or hereafter in any operating or
reserve accounts (the "Accounts"). The Dues and Accounts are referred to collectively
as the "Association Assets". This assignment shall constitute a perfected, absolute and
present assignment, provided that the Association may, so long as no Event of Default
with respect to Section 6.6 hereof occurs, collect and retain all Association Assets.
The provisions of this Section 6.7 are intended to be a mere license in favor of
the Association and a mere deferral of the City's exercise of its perfected, absolute and
present rights hereunder, and shall not be construed to be a future assignment thereof.
b. The Association hereby covenants and warrants to the City that the
Association has not executed any prior assignments of any Association Assets, nor has
it performed any act or executed any other instrument that might prevent the Association
from operating under any of the terms and conditions of this assignment or that would
limit the Association in such operation.
c. The Association hereby agrees that, so long as the Association's
obligations under Section 6.6 hereof remain outstanding the Association will not, without
the written consent of the City, make any other assignment, pledge or other disposition
of any of the Association Assets, or consent in any assignment of same; and any such
acts, if done without the written consent of the City, shall be null and void.
d. Upon the occurrence of an Event of Default with respect to Section 6.6
hereof, the City shall have the right to withdraw funds from, and liquidate any securities
in any Accounts, and collect the Dues from the owners of Housing Units, and apply the
same for deposit in the Bond Fund. This assignment shall be binding upon the occupants
of Housing Units in the Property from the date of filing by the City in the office or
offices where this Agreement is filed that an Event of Default under Section 6.6 hereof
has occurred and is continuing and service of a copy of the notice upon the occupants of
21
the Housing Units. The expenses, including any attorney's fees, reasonably incurred
pursuant to the powers herein contained shall be deemed to be immediately due and
payable by the Association to the City and shall be secured hereby. The City shall not
be liable to account to the Association for any action taken pursuant hereto other then to
account for any Association Assets actually received by the City.
e. The City shall not be obligated to perform or discharge, nor does it
undertake to perform or discharge, any obligation, duty or liability under any agreement
between the Association and or owners of Housing Units in the Property, and the
Association hereby agrees to defend and indemnify the City and hold it harmless for any
and all liability , loss or damage which it mayor might incur under or by reason of this
assignment and from any and all claims and demands whatsoever which may be asserted
against it by reason of any alleged obligation or undertaking on its part to perform or
discharge any of the terms or covenants contained in any agreement by and among the
Association and the owners of Housing Units in the Property, except such claims and
demands that arise out of the negligence or willful misconduct of the City, its officers,
employees and agents. Should the City incur any such liability, loss or damage under
or by reason of this assignment, or in the defense against any such claims or demands
arising out of this assignment, the amount thereof, including costs, expenses and
reasonable attorneys' fees, together with interest thereon at the rate of interest on the
Bonds, shall be secured hereby, and the Association shall reimburse the City therefore
immediately upon demand.
Section 6.8. Association to Maintain its Existence. The Association agrees that, so
long as the Bonds are outstanding, it will maintain its existence as a nonprofit corporation under
the laws of Minnesota; will not dissolve or overwise dispose of all or substantially all of its
assets; and will not consolidate with or merge into another corporation or permit one or more
other corporations to consolidate with or merge into it.
Section 6.9. Prohibition Against Assignment of Agreement. The Association
represents and agrees that prior to the Maturity Date the Association has not made or created
and will not make or create or suffer to be made or created any total or partial sale, assignment,
conveyance, or any trust or power, or transfer in any other mode or form of or with respect to
the Association's rights, interests or obligations under this Agreement or any part thereof, or any
contract or agreement to do any of the same, without the prior written approval of the City.
Section 6.10. Notice of Fee Upon Transfer of Housing Units. The Association agrees
that it will use its best efforts to ensure that owners of each Housing Unit upon which a Fee is
imposed under the Fee Resolution provide notice of the Fee to prospective buyers or transferees
upon any sale or transfer of the Housing Unit. Such efforts by the Association shall include,
but are not limited to ensuring that Housing Unit owners include a description of the Fee in a
disclosure certificate provided to the purchaser substantially in the form required by Minnesota
Statutes, Section 515B.4-107 regardless of whether such statute applies to the Housing Unit.
22
The Association shall amend the Declaration as necessary to require the owners of each Housing
Unit to provide such disclosure.
Section 6.11. Repair and Replacement Policy. On or before
, 1998 the Association must adopt a detailed repair and replacement
policy for the Common Area and other portions of the Property which the Association is
obligated to maintain pursuant to the Declaration. The repair and replacement policy must be
consistent with the terms of the Declaration and the Declaration must be amended prior to the
date set forth above, if necessary, to conform to the repair and replacement policy. The repair
and replacement policy must detail the division for repairs and replacement between the
Association and the owners of the Housing Units.
Section 6.12. Increases in Assessments. The Association agrees to increase the
assessments payable pursuant to the Declaration by owners of Housing Units by an amount
sufficient to fund current operating expenses, replacement reserves and deferred maintenance
costs as permitted by the Declaration until the Assessments are sufficient in accordance with the
Financial Plan to pay the Project's current operating expenses' replacement reserves in
accordance with the approved Financial Plan and any deferred maintenance not otherwise
scheduled to be completed as part of the Housing Improvements. The Association shall give the
City written notice the first time that the Association intends to increase the assessments by less
than a sufficient amount. Such notice shall be submitted with the updated Financial Plan in
accordance with Section 6.3(a) hereof and the City shall approve or reject the proposal to reduce
or eliminate the assessments increase in the same manner that the City approves or rejects the
updated Financial Plan provided that the City shall not unreasonably withhold approval of the
Association's decision regarding assessments.
Section 6.13. Intentionally Omitted.
Section 6.14. FHA/HUn Insurance. The Association agrees to use all reasonable
efforts to qualify for FHA/HUD mortgage insurance for the Housings Units. In determining
whether to take the steps necessary to qualify for such insurance the Association may take into
consideration the out-of-pocket costs and administrative costs that would be incurred in
qualifying for such insurance. In no event shall the Association be required to incur any
environmental testing or remediation costs or to construct any improvements, other than the
Housing Improvements, to qualify for FHA/HUD mortgage insurance.
Section 6.15. Experienced Property Manager. So long as the Bonds are outstanding,
the Association agrees to maintain "experienced professional property management" for the
Property. For purposes of this subsection "experienced professional property management" shall
mean a full time property manager who meets the following criteria:
a. Has at least five years of executive property management experiences
including experience with multi-unit residential housing.
23
b. Has experience working with boards and membership organizations.
c. Has demonstrated knowledge of maintenance and construction issues.
d. Has demonstrated knowledge of accounting, financial reporting, budgeting
and related issues.
e. Does not have an ownership interest in any Housing Unit and is not the
spouse, child, parent or sibling of anyone who has an ownership interest.
ARTICLE VII
Events of Default
Section 7.1. Events of Default Defined. The following shall be "Events of Default"
under this Agreement and the term "Event of Default" shall mean, whenever it is used in this
Agreement (unless the context otherwise provides), any failure by any party to observe or
perform any other covenant, condition, obligation or agreement on its part to be observed or
performed hereunder.
Section 7.2. Remedies on Default. Whenever any Event of Default referred to in
Section 7.1 of this Agreement occurs, the non-defaulting party may exercise its rights under this
Section 7.2 after providing thirty (30) days written notice to the defaulting party of the Event
of Default, but only if the Event of Default has not been cured within said thirty days or, if the
Event of Default is by its nature incurable within thirty days, the defaulting party does not
provide assurances reasonably satisfactory to the non-defaulting party that the Event of Default
will be cured and will be cured as soon as reasonably possible:
a. Suspend its performance under the Agreement until it receives assurances
that the defaulting party will cure its default and continue its performance under the
Agreement.
b. Use any balance in the Special Reserve Fund to cure the event of Default.
c. Take whatever action, including legal, equitable or administrative action,
which may appear necessary or desirable to collect any payments due under this
Agreement, or to enforce performance and observance of any obligation, agreement, or
covenant under this Agreement.
Section 7.3. No Remedv Exclusive. No remedy herein conferred upon or reserved to
the City or Association is intended to be exclusive of any other available remedy or remedies,
but each and every such remedy shall be cumulative and shall be in addition to every other
remedy given under this Agreement or now or hereafter existing at law or in equity or by
24
statute. No delay or omission to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a waiver thereof, but any such right
and power may be exercised from time to time and as often as may be deemed expedient. In
order to entitle the City to exercise any remedy reserved to it, it shall not be necessary to give
notice, other than such notice as may be required in this Article VII.
Section 7.4. No Additional Waiver Implied by One Waiver. In the event any
agreement contained in this Agreement should be breached by either party and thereafter waived
by the other party, such waiver shall be limited to the particular breach so waived and shall not
be deemed to waive any other concurrent, previous or subsequent breach hereunder.
ARTICLE vm
Additional Provisions
Section 8.1. Conflict of Interests: Citv Representatives Not Individuallv Liable. The
City and the Association, to the best of their respective knowledge, represent and agree that no
member or official of the City shall have any personal interest, direct or indirect in the
Agreement, nor shall any such member or official participate in any decision relating to the
Agreement which affects his personal interests or the interests of any corporation, partnership,
or association in which be is, directly or indirectly, interested. No member or official of the
City shall be personally liable to the Association, or any successor in interest, in the event of
any default or breach by the City or for any amount which may become due to the Association
or successor or on any obligations under the terms of the Agreement.
Section 8.2. Equal Emplovment Opportunitv. The Association, for itself and its
successors and assigns, agrees that during the construction of the Housing Improvements
provided for in the Agreement it will comply with all applicable federal, state and local equal
employment and non-discrimination laws and regulations.
Section 8.3. Provisions Not Merged With Deed. None of the provisions of this
Agreement are intended to or shall be merged by reason of any deed transferring any interest
in the Property and any such deed shall not be deemed to affect or impair the provisions and
covenants of this Agreement.
Section 8.4. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of the Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 8.5. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under the Agreement by either party to
the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally:
25
a. In the case of the Association, is addressed to or delivered personally to
the Association at 8951 42nd Avenue North, New Hope, Minnesota 55427, Attention:
Dan Leaf, President, Rockford Homeowners Association.
b. In the case of the City, is addressed to or delivered personally to the City
at 4401 Xylon Avenue North, New Hope, Minnesota 55428, Attention: Daniel J.
Donahue, City Manager, or at such other address with respect to either such party as that
party may, from time to time designate in writing and forward to the other as provided
in this Section.
Section 8.6. Counterparts. This Agreement may be executed III any number of
counterparts, each of which shall constitute one and the sane instrument.
Section 8.7. Recording. The City shall record this Agreement and any amendments
thereto with the Hennepin County Recorder or Registrar of Titles. The Association shall pay
all costs for recording.
Section 8.8. Binding Act. This Agreement shall inure to the benefit of and shall be
binding upon the City and the Association and their respective successors, heirs and assigns.
Section 8.9. Amendment. This Agreement may be amended only by written agreement
of he parties hereto.
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in
its name and the Association has caused this Agreement to be duly executed in its name on or
as of the date first above written.
CITY OF NEW HOPE, MINNESOTA
t',,~ "
By: f;fJr~(1~~Jc
By: Z~~
Its City Manager
ROCKFORD OWNERS ASSOCIATION
By:
Its:
c-~ "~'~.d.
"\ ,/-,--"" "::"-"---~ ~..-"
'-~c::~ -/ ~ :/ ,"-) 7
,///" ~ ?, '..c::~' #y::/
" __..7 ,I ../ ,~fi '"
By:
Its:
d$;tM~
I~re 0.. s: u r<
26
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this It/fA day of
IYltUl , 1998, by W. Peter Enck and Daniel J. Donahue, the Mayor and City
Manager, respeHively, of the City of New Hope, Minnesota, a municipal corporation on behalf
of the City.
(N otarial Stamp or Seal)
VALERIE J. LEONE
NOTARY PUBLIC. MINNESOTA
My Commission Expires
January 31. 2000
&
f~c~~
Notary Public
/,','7 j)
if' d,Ur-vlL
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrume~t was acknowledged before IIle this !d. '/1; day of
/YllLV ,1998, by f);U7re.[ Ute--f and LIIWtA. ~o VeL ,
the Pr e~-ldl~iTt- and T/12I1Jljj-el~ , respectively, (Of RocKford Owners
Association, a Minnesota nonprofit corporation on behalf of the corporation.
(Notarial Stamp or Seal)
'II lvUL (h cIfn~
"Notary Publi61
VALERIE J. LEONE
NOTARY PUBLIC. MINNESOTA
My Commission Expires
January 31, 2000
ROCKFORD.DA (28I\SAS)
27
SCHEDULE A
PROPERTY
Lots 1 through 59, inclusive, Sandpiper Cove, all of which is according to the
plates) thereof on file and of record in the office of the Registrar of Titles,
Hennepin County, Minnesota. Said housing improvement area consists of 36
housing units as of the adoption of this section.
SCHEDULE B
HOUSING IMPROVEMENTS
Pursuant to and in accordance with the January 30, 1998 overview specifications of
Construction Consulting & Inspections Ltd., the following housing improvements shall be made
per this agreement:
1. Replacement of 234 window units;
2. Replacement of 44 patio doors;
3. Replacement of 36 overhead garage doors;
4. Replacement of all rear decks and side entry stoops on 10 duplex buildings and
replacement of all rear decks and front entry stoops/decks on 4 fourplex buildings;
5. Repair of roofs on 2 duplex buildings with installation of new fiberglass reinforced
shingles, soffits and eave fascia;
6. Replacement of gutters and downspouts on selected buildings;
7. Replacement of all exterior lighting on the buildings;
8. Replacement of all exterior siding, soffits and fascia including wrap of all windows and
doors, trim and ceilings in stoops;
9. Replacement of garage mandoors in the duplex buildings;
10. The above mentioned construction shall also include all incidental work and repairs to
finish the construction to industry standards and comply with all building codes
regardless of whether said incidental work is described in this Code or in the January 30,
1998 Construction Consulting & Inspections, Ltd. Overview Specifications.
SCHEDULE C
(Intentionally Left Blank)
SCHEDULE D
DISBURSEMENT REOUISITION OF
ASSOCIATION'S AUTHORIZED REPRESENTATIVE
TO: City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
DISBURSEMENT DIRECTION
The undersigned Authorized Representative of Rockford Owners Association, a
Minnesota nonprofit corporation (the "Association"), hereby authorizes and request you to
disburse from the Project Fund held by you pursuant to the Development Agreement between
the City of New Hope, Minnesota and Rockford Owners Association, dated as of
, 1998 (the "Agreement"), the following amount to the following person
and for the following proper Housing Improvement cost and purpose:
11. Amount:
12. Payee:
13. Purpose:
all as defined and provided in said Agreement. The undersigned further certifies that (i) none
of the items for which payment is proposed to be made has formed the basis for any payment
theretofore made from the Project Fund, and (ii) each item for which the payment is proposed
to be made is or was necessary in connection with the Housing Improvements, and (iii) the
amount of funds to remain on deposit in the Project Fund following this disbursement is
currently estimated to be sufficient to pay all future costs of the Housing Improvements.
Dated:
, 1998.
Association's Authorized Representative
STEVEN A. SONORAU..
MICHAEL. R. I..AFL.EUR
MARTIN P. MAL.ECHA
WIL.L.IAM C. STRAIT*
CORRICK & SONDRALL, P.A.
AnoRNEYs AT LAW
Edinburgh Executive Office Plaza
8525 Edmbrook CrOSSing
Suite #203
Brooklyn Park. Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 425-5867
LEGAL ASSISTANT
SHARON o. OERBY
*OUAUFIED AOR NEUTRAL
CCOJIPt
April 17, 1998
Chad A. Johnson
Hellmuth & Johnson, P.A.
300 Cabriole Center
9531 West 78th Street
Eden Prairie, MN 55344-8006
............................................................
l SENT By FAX
l To: (612) 943-2337
L~~~..~~..~~~.~.~.~..~.~.~~..
Re: Development Agreement between City of New Hope and Rockford Owners
Association
Our File No. 99.11155
Your File No. 6209001
Dear Mr. Johnson:
Please find enclosed for your review the proposed Development Agreement between the City
of New Hope and the Rockford Owners Association in connection with the housing improvement
project at the Sandpiper Cove Townhome Development.
In response to the City's agreement with the Rockford Owners Association I have made several
amendments to the enclosed Agreement from the one previously provided to you. Section II and
III of the Agreement have been significantly amended to provide for the following:
1. The fee resolution adopted at the City Council's March 23, 1998 meeting, identified as
Resolution No. 98-50, will be amended by a subsequent resolution to extend the
prepayment date on the housing improvement special assessment fee until November 20,
1998. This will provide the City with one (1) week to make adjustments to assessable
fees against individual units for certification to the County based on any prepayments
received. The City must certify these costs to the County by November 29, 1998 to
ensure they will be part of the real estate tax collection process for the following year.
2. The City will change the initiation date for the accrual of interest on the unpaid housing
improvement assessment fees until January 1, 1999. As a result, the City is waiving all
claims for capitalized interest in connection with the use of the monies already earmarked
for this project in the City's Temporary Financing Construction Fund.
April 17, 1998
Page 2
3. The City is including the building permit fee in the administrative, legal and fmance costs
charged against the project. In other words, the approximately $8,000.00 in costs for
the building permit will be included as part of the City's 15 % of actual construction
costs .
As pointed out in the Agreement, these concessions are being made in consideration for the 8 %
interest rate used to calculate the housing improvement fees against each individual unit in the
improvement area as set forth in Exhibit A to Resolution No. 98-50.
The community development director intends to place this Agreement on the April 27, 1998
Council Meeting Agenda for consideration and approval by the City Council. As a result, any
proposed modifications, amendments or changes you would like me to consider must be
communicated to me by Wednesday, April 22, 1998.
Thank you for your consideration in this matter.
Very truly yours,
Steven A. Sondrall
New Hope City Attorney
SAS: sar
Enclosure
cc: Kirk McDonald
CITY-D1.LTR (28I\SAS)
NOTICE OF PUBLIC HEARING
TO IMPOSE HOUSING IMPROVEMENT FEE
ON HOUSING UNITS WITHIN SANDPIPER COVE
HOUSING IMPROVEMENT AREA AS REQUIRED
BY Minn.STAT. S428A.14 AND NEW HOPE CODE S1.805
City of New Hope. Minnesota
Notice is hereby given that the City Counclf of the City of New Hope, Minnesota,
will hold a public hearing on:
Monday, March 23, 1998 at 7:00 p.m.
in the City Council chambers in City Hall, 4401 Xylon Avenue North in the City of New
Hope, regarding adoption of a resolution imposing fees on housing units within the
Sandpiper Cove Housing Improvement Area for the Sandpiper Cove Townhome
Development under Minn.Stat. SS428A.11 through 428A.21 (Laws 1996) (the "Housing
Improvement Acf').
Within the Sandpiper Cove Housing Improvement Area, the City proposes to facilitate
various improvements to the Sandpiper Cove Townhome Development. The
improvements will be financed by fees imposed on the owners of the units. Details
regarding the hearing, the improvements and the fees are described below.
.
.
1. Persons to be heard: All interested persons will be given an
opportunity to be heard at the hearing regarding the proposed housing
improvement fee.
2. Proposed Improvements: Replace windows, patio doors, overhead
garage doors, decks and stoops, roofs on two buildings, gutters and down
spouts, exterior lights, vinyl siding and accessories, garage mandoors, all in
accordance withthe January 30, 1998 ovelView specifications prepared by
Construction Consulting & Inspections, Ltd.
3. Estimated Cost of Improvements to be paid in whole or in part
by housing improvement fee: $600,000.00, including administrative
costs and costs of issuing bonds to finance the improvements.
4. Amount to be charged against each housing unit: Following are
estimates of the fee to be imposed on housing units in the Sandpiper Cove
Housing Improvement Area:
Total Fee Per Unit:
Estimated Annual Fee Per Unit:
$16,667.00
$ 1,697.54
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,.
The total fee may be less, but will not be more, than the above amount. The fee
includes interest at an annual rate of 8%.
5. Owner's right to prepay: Housing unit owners may prepay all or a
portion of the Total Fee within 30 days after the effective date of the
resolution; provided that if only a portion is prepaid, the prepayment amount
must be at least 25% of the Total Fee. In the case of partial prepayment,
the unpaid balance will be imposeq as an Annual Fee as described in
paragraph 6 below. After the 30 day period expires, the unpaid portion of
any Housing Improvement Fee and accrued interest shall be prepayable
only in the full amount.
6. Number of years the fee will be in effect If owners do not prepay
the Total Fee, the Annual Fee including interest at 8% annually will be
imposed in equal installments over a 20-year period. The first installment
will be payable in 1999.
7. Compliance with Petition Requirement: Owners of more than 25
percent of the housing units that would be subject to the proposed fee in th~
Sandpiper Cove Housing Impro\(ement Area have filed a petition with the
City Clerk requesting a public hearing on the proposed fee, in accordance
with Minn.Stat. S~28A.12 and 428A.14 of the Housing Improvement Act.
8. The resolution imposing the proposed Housing Improvement Fee will
become effective 45 days after its adoption. If 35% or more of the unit
owners within the Sandpiper Cove Housing Improvement Area file a written
objection to the fee resolution with the City Clerk within said 45 day period,
the resolution imposing the fee will not become effective and the fee will not
be imposed.
For further information on the proposed housing improvement fee, contact the City
Community Development Director at City Hall, 531-5119.
Accommodations such as sign language interpr~ter or large printed materials are
available upon request at least 5 working days in advance. Please contact the City Clerk
to make arrangements (telephone 531-5117, TOO number 531-5109).
Dated the 5th day of March, 1998.
s/ Valerie J. Leone
Valerie J. Leone
City Clerk
(Published in the New Hope-Golden Valley Sun-Post on the 111h day of March, 1998.)
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.
PETITION REQUESTING IMPOSITION OF
HOUSING IMPROVEMENT SPECIAL ASSESSMENT FEE
PURSUANT TO MINN. STAT. SS428A.12 AND 428A.14
::
..'
We, the undersigned members of the Rockford Homeowners Association and fee owners of the
following units with the Sandpiper Cove Townhome Improvement Area, hereby petition the City of New
Hope for a public hearing to consider our request and hereby request the City to impose a housing
improvement special assessment fee against the individual units within the housing improvement area to
finance construction for housing improvements as described in the January 30, 1998, report from
Construction Consulting and Inspections, Ltd. We understand the City cannot issue bonds to assist in
the financing of these improvements to our property unless this petition is submitted by the undersigned
requesting that this housing improvement fee be imposed per Minn. Stat. SS428A.12 and 428A.14 after
a public hearing to consider the fee. We further understand a housing improvement area has already
been established over our units by New Hope City Ordinance pursuant to a previous petition we signed
requesting the creation of a housing improvement area to make the described improvements in the
Construction Consulting and Inspections. Ltd. report referred to above.
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4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
City Hall: 612-531-5100
Police: 612-531-5170
Public Works: 612-533-4823
TOO: 612-531-5109
City Hall Fax: 612-531-5136
Police Fax: 612-531-5174
Public Works Fax: 612-533-7650
Fire Oep't. Fax: 612-531-5175
April 29, 1998
Mr. Dan Leaf
Rockford Homeowners Association
8951 42nd Avenue North
New Hope, MN 55427
Mr. Peter Rawski
Rockford Homeowners Association
8921 42nd Avenue North
New Hope, MN 55427
Subject:
Development Agreement between City of New Hope and Rockford Owners Association
Dear Dan and Peter:
As you are aware, at the April 27 New Hope City Council meeting, the Council approved a Development
Agreement between the City of New Hope and Rockford Owners Association. The agreement sets forth
the terms and responsibilities of the Association relative to the project and the disbursement of funds by
the City to finance the improvements. The City Attorney will be forwarding you copies of the final
agreement for execution.
If you have any questions, please feel free to contact me at 531-5119. Thank you for your cooperation.
_ ~ce\eIY,
c~~\\\~
Kirk McDonald
Director of Community Development
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Doug Sandstad, Building Official
Scott Dornfeld, General Inspector
Randy Kurtz, Fire Inspector
Improvement Project File No. 600
Family Styled CityiBDn\~!~,\" For Family living
/IV ~ \)1\