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IP #975PROJECT NO. 975 4511 Boone Avenue North EDA 15-24 11/23/15 Resolution authorizing the acquisition of 4511 Boone Avenue North by the Economic Development Authority through redemption as a junior creditor (project no. 975) 05/09/16 Motion selecting Novak -Fleck as preferred builder EDA 16-12 05/23/16 Resolution approving purchase and redevelopment agreement with Novak -Fleck Incorporated for the sale of 4511 Boone Avenue North (improvement project no. 975) EDA 16-14 6/27/16 Resolution approving contract with Robinson Environmental, Inc. for removal of bulk debris and other hazardous materials at 4511 Boone Avenue North (improvement project 975) EDA 16-15 6/27/16 Resolution approving contract with Leadens Excavating, Inc. for demolition of site improvements, utility work, tree removal and site grading at 4511 Boone Avenue North (improvement project 975) Hennepin County Memo DATE: October 27, 2015 TO: Aaron Chirpich, Community Development Specialist City of New Hope FROM: Isak Collins - Intermediate Administrative Assistant SUBJECT: Statutory Checklist -CDBG 5411 Boone Avenue N New Hone, MN 55428 This Statutory Checklist is prepared for the acquisition and rehabilitation or demolition of the above property covering the site specific review using HUD CDBG funds. The site specific review which has been evaluated pursuant to National Environmental Policy Act (NEPA) requirements contained in the final rule for 24 CFR Part 58 effective May 30, 1996. It has been determined that this project is Categorically Excluded/Converts to Exempt from NEPA requirements under Sec. 58.35(a)(4)(1) and Sec. 58.34(a)(12) and no environmental impact statement or environmental assessment and finding of no significant impact under NEPA is required. Further, as identified in the Statutory Checklist (attached) this activity is in compliance with other Federal environmental laws and authorities listed in Sec. 58.6. No further environmental review is required prior to committing program funds to this activity. C: Project file (866) U.S. Department of Housing and Urban Development 451 Seventh Street, SW Washington, DC 20410 www.hud.gov espenol,hud.gov Environmental Review for Activity/Project that is Categorically Excluded Subject to Section 58.5 Pursuant to 24 CFR 58.35(a) Proiect Information Project Name: 4511 Boone Ave N Responsible Entity: Hennepin County Grant Recipient (if different than Responsible Entity): State/Local Identifier: Minnesota Preparer: Isak Collins Certifying Officer Name and Title: David Hough, County Administrator Grant Recipient (if different than Responsible Entity): Consultant (if applicable): Direct Comments to: Isak Collins Project Location: 4511 Boone Ave N, New Hope MN Description of the Proposed Project [24 CFR 50.12 & 58.32; 40 CFR 1508.251: The City of New Hope proposes to acquire and demolish the structure at 4511 Boone Ave N as a part of their scattered site blight removal program. Level of Environmental Review Determination: Categorically Excluded per 24 CFR 58.35(a), and subject to laws and authorities at §58.5:_. _ Fundina Information Grant Number B-15-UC-27-001 I CDBG Estimated Total HUD Funded Amount: $68,167 Funding Amount $68,167 Estimated Total Project Cost (HUD and non -HUD funds) [24 CFR 58.32(d)]: $123,167 Comip lianee with 24 CFR 50.4 58.5 and 58.6 Laws and Authorities Record below the compliance or conformance determinations for each statute, executive order, or regulation. Provide credible, traceable, and supportive source documentation for each authority. Where applicable, complete the necessary reviews or consultations and obtain or note applicable permits of approvals. Clearly note citations, dates/names/titles of contacts, and page references. Attach additional documentation as appropriate. Compliance Factors: Are formal Compliance determinations Statutes, Executive Orders, compliance and Regulations listed at 24 steps or CFR §58.5 and §58.6 mitigation required? STATUTES, EXECUTIVE ORDERS, AND REGULATIONS LISTED AT 24 CFR 50.4 & 58.6 Airport Hazards Yes No The project is not in a Clear Zone or ® Approach Protection Zone. No written 24 CFR Part 51 Subpart D disclosures are required. See attachment 2. �Coas&_IBarrier Resources Yes No Minnesota's only Coastal Bounda[y.covers o ® 189 miles of shoreline along the Lake l Barrier Resources Act, as CI Superior, which Is not In Hennepin County. by the Coastal Barrier See attachment 3. ent Act of 1990 [16 11 urance Yes No The structure is not located in a floodplain. Data from the Federal Emergency aster Protection Act of Management Agency (FEMA). See National Flood attachment 4. Reform Act of 1994 [42 USC 4001-4128 and 42 USC 5154a] STATUTES, EXECUTIVE ORDERS, AND REGULATIONS LISTED AT 24 CFR 50.4 & 58.5 Clean Air Yes No Hennepin County, where the project is ® located, meets the Federal Air Quality Clean Air Act, as amended, standards. See attachment 5. particularly section 176(c) & (d); NOTE: the map indicates Dakota 40 CFR Parts 6, 51, 93 County as being "non -attainment". Coastal Zone Management Yes No Minnesota's only Coastal Boundary covers ® 189 miles of shoreline along the Lake Coastal Zone Management Act, Superior, which is not in Hennepin County. sections 307(c) & (d) See attachment 3. Contamination and Toxic Yes No The property is not listed on an EPA Substances Superfund National Priorities list or CERCLA list and Is -not within 2,000 feet 24 CFR Part 50.3(i) & 58.5(i)(2) of a toxic or solid waste landfill site. It Is not known or suspected to be contaminated by toxic chemicals or radioactive materials. There are five hazardous currently active licensed material generators within one half mile of the project site that pose little risk to the health and safety of the occupants. See attachment 7. Endangered Species Yes No No federally or state listed endangered El ® species have been located on this site. See Endangered Species Act of 1973, attachment 6. particularly section 7; 50 CFR Part 402 Explosive and Flammable Yes No Sites storing explosive and/or flammable Hazards El ® materials in above ground storage tanks are identified as "302 sites". There are 24 CFR Part 51 Subpart C thirteen 302 sites within one mile of the project site that are chemicals at schools, city facilities and local businesses, These sites are not within line of sight and pose little risk to the project. See attachment 7. Farmlands Protection Yes No The project is not in designated prime El ® farmland. See attachment S. Farmland Protection Policy Act of 1981, particularly sections 1504(b) and 1541; 7 CFR Part 658 _ F000dplain Management Yes No The structure is not located in a floodplain. Data from the Federal Emergency Executive Order 11988, Management Agency (FEMA). See the particularly section 2(a); 24 CFR attachment 4. Part 55 Historic Preservation Yes No The structure was built in 1971; SHPO ® verified that no historic properties eligible for National Historic Preservation or listed on the National Register of Historic Act of 1966, particularly sections Places would be affected by this project. 106 and 110; 36 CFR Part 800 Property of no historical significance 10/14/15. See attachment 1. Noise Abatement and Control Yes No HUD noise calculation procedures call for El ® consideration of all major roadways Noise Control Act of 1972, as within 1,000 feet of the project site, all amended by the Quiet rail lines within 3,000 feet of the site, Communities Act of 1978; 24 and all airports within 15 miles of the CFR Part 51 Subpart B site. There are no major roadways within 1,000 feet and there are no railroads within 3,000 feet of the project site. The project site is approximately 2.7 miles from the 60 DNL noise contour from Crystal Airport, a small reliever airport and not a major sound generator, and approximately 9.5 miles from the 60 DNL sound contour from MSP, a large commercial airport. Noise levels at the site would be considered acceptable (below 65 db). See attachment 2. Sole Source Aquifers Yes No The only EPA -designated sole source ® aquifer in Minnesota is the Mille Lacs Safe Drinking Water Act of 1974, Aquifer, considerably north of Hennepin as amended, particularly section County. See attachment 9. 1424(e); 40 CFR Part 149 Wetlands Protection Yes No This site is located outside all identified El ® wetland areas. Data from the National , Executive Order 11990, Wetlands Inventory. See attachment 10. particularly sections 2 and 5 Wild and Scenic Rivers There are seven Wild and Scenic Rivers in Yes No Minnesota; none are near to the project Wild and Scenic Rivers Act of ❑ ® site. See attachment 11. 1968, particularly section 7(b) and (c) Field Inspection (Date and completed by): Isak Collins Summary of Findings and Conclusions: 10/13/2015 Miti ation Measures and Conditions 140 CFR 1505.2(01 Summarize below all mitigation measures adopted by the Responsible Entity to reduce, avoid, or eliminate adverse environmental impacts and to avoid non-compliance or non-conformance with the above -listed authorities and factors. These measures/conditions must be incorporated into project contracts, development agreements, and other relevant documents. The staff responsible for implementing and monitoring mitigation measures should be clearly identified in the mitigation plan. Law, Authority, or Factor none Determination: Mitigation Measure ® This categorically excluded activity/project converts to EXEMPT per Section 58.34(a)(12), because it does not require any mitigation for compliance with any listed statutes or authorities, nor requires any formal permit or license; Funds may be committed and drawn down after certification of this part for this (now) EXEMPT project; OR ❑ This categorically excluded activity/project cannot convert to Exempt status because one or more statutes or authorities listed at Section 58.5 requires formal consultation or mitigation. Complete consultation/mitigation protocol requirements, publish NOURROF and obtain "Authority to Use Grant Funds" (HUD 7015.16) per Section 58.70 and 58.71 before committing or drawing down any funds; OR ❑ This project is not categorically excluded OR, if originally categorically excluded, is now subject to a full Environmental Assessment according to Part 58 Subpart E due to extraordinary circumstances (Section 58.35(c)). Preparer Signature: Date: l7a, S Name/Title/Organization: Isak Collins/Administrative Assistant/Hennepin County This origink/signed document and related supporting material must be retained on file by the Responsible Entity in an Environmental Review Record (ERR) for the activity/project (ref: 24 CFR Part 58.38) and in accordance with recordkeeping requirements for the HUD program(s). Attachment 1 Hennepin County Department of Community Works ' 7014th Avenue South, Suite 400 Minneapolis, Minnesota 55415-1843 October 1, 2015 MHS/SHPO Attn: Review and Compliance Unit 345 Kellogg Blvd W. St. Paul, MN 55102 RE: SHPO Review Dear SHPO staff, Z101 - 612-348-9260, Phone 612-348-9710,Fax www.hennepin.us or, 0 Jai �0 /5 Hennepin County Housing requests State Historical Preservation Office review on the property located at 4511 Boone Ave N, New -Hope, MN 55428. Property records state that house was constructed in 1971. We do not believe it has any historical significance. The City of New Hope will use federal U.S. Department of Housing and Urban Development funding to aquire and demolish the structure. Enclosed please find a map and a photograph of the house. If you Have any questions or need additional pictures let me know. Sincerely, Isak Collins Intermediate Administrative Assistant This project has been reviewed by the Minnesota SHPO pursuant to the National Historic Preservation Act (36CFR800), the Minnesota Historic Sites Act, anti the Minnesota Field Archaeology Act, as applicable. There are no reported historic or archaeological resources in the project area, and we feel that the probability of any unreported pIroperlics is low. Therefore, based on available information, we conclude that no historic Properties eligible for or listed on the National R ister of Histux•ic Places will be affected by this proiect. If you have any questions, contact the Review and Compliance staff at (651) 259-3455. 0"A OfiWVL(l A OCT 14 2015 Sarah Beimers Date Manager, Government Programs and Compliance An tquai vppununny CrnNwycI This map (1) is furnished "AS IS" with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (hi) is not Publication date: 10/16/2015 suitable for legal, engineering or surveying purposes Hennepin County shall not be liable for any damage, injury or loss resulting from this map, Hennepin County, Metropolitan Council, MN -DOT, USDA-FSA, NRCS,USGS Hennepin County Public Works Attachment 3 Attachment 4 Big I $g gg i d O �hEE ii ul J till 4 < 1H 1 .9 - N — — �� E 0 gif 1 o qae 9 a� i$ h,j C s�rED aIt,s N ZEALAND AVE 3AV vinov �< N i L L �a 0 3AV NDISN3 3AV JV .4 Attachment 5 Counties Designated "Nonattainment" for Clean AirAct's National Ambient Air Quality Standards (NAAQS) " 2015 � � v Legend" (L___ County Designated Nonattainment for 6 NAAQS Pollutants County Designated Nonattainment for 5 NAAQS Pollutants County Designated Nonattainment for 4 NAAQS Pollutants County Designated Nonattainment for 3 NAAQS Pollutants 0 County Designated Nonattainment for 2 NAAQS Pollutants County Designated Nonattainment for 1 NAAQS Pollutant Guam - Piti and Tanguisson Counties are designated nonattainment for the SO2 NAAQS " The National Ambient Air Quality Standards (NAAQS) are health standards for Carbon Monoxide, Lead (1978 and 2008), Nitrogen Dioxide, 8-hour Ozone (1997 and 2008), Particulate Matter (PM-10 and PM-2.5 (1997 and 2006)), and Sulfur Dioxlde.(1971 and 2010) "" Included in the counts are counties designated for NAAQS and revised NAAQS pollutants. 1-hour Ozone is excluded. Partial counties, those with part of the county designated nonattainment and part attainment, are shown as full counties on the map. This map (1) Is furnished "AS IS" with no representation as to completeness or accuracy; (h) Is furnished with no warranty of any Idnd; and (Ili) is not Publication date: 10/13/2015 suitable for legal, engineering or surveying purposes. Hennepin County shall not be liable for any damage, injury or loss resulting from this map ' Data Sources; Hennepin County, MN-DNR, MN -DOT, USDA- Hennepin County Public Works FSA, NRCS, USGS 0 0 fl fl O a d 0 O O 0 0 Ep 0 _ R _ 40 Q ®Q 0 0 �agoo 0 0 0 (0 Sner6urne Anoka PROJE LOCAL 13 Hennepin Carver Dakota Stoll 0 0 0 ro 4 03 H 4W ,0 0 { ® g0 fl CJt 0 Legend 0 0 302 Hazardous Materials Facility Sltes Hennepin County Municipal Boundaries Hennepin County Boundary ® ® MPCA Look Sites . W MPCALeakSltes a MPCA VIC Sites MPCA VIC Sltes MPCA Superfund Sites HC PDINTS_ADD r ` goo +9 MPCAUnpermlttedDumps / do i• MPCA Unpermitled Dumps �$ $ HazWaste Generators - Status $ 0 R fl O $ Generator Status 4� fl Potential Generator - Not Licensed 0 Inspected Generator - License Pending O 0 0 � A 0 Current Generator -Licensed 0 Former Generalor- Dul of Business I. w+E 0 0,05D1 0.2 0.3 0e ® lb Q Hon Genmator • W Licensed ® Rail roatls•Achve VP Miles s This map (1) is furnished "AS IS" with no representation as to completeness Project or accuracy; (it) is furnished with no warranty of any kind; and (III) is not name suitable for legal, engineering or surveying purposes. Hennepin County Publication date: 10/16/2015 shall not be liable for any damage, injury or loss resulting from this map. Hennepin County, Minnesota Pollution Control Agency, MN- Hennepin County Public Works DOT, USGS Attachment 8 Summary by Map Unit — Hennepin County, Minnesota (MM053) Map unit symbol Map unit name Ratlne Acres In A01 Percent of A01 L52C Urban Nod-lester complex, 2 to 1 e percent slopes Not pima farmland e.0 99.79s UTA Oban land-ldorlhenls, wet substratum, complex, 0 to 2 percent slopes Not prime farmland 0.9 10.1% fold s fac Afea el 11110-St 8.9 200.0% farmland classification Identifies map units as prime farmland, farmland of statewide Importance, larmfaeld of local importance, or unique farmland. It Identifies the location and exlera of the soils that are best suited to food, feed, fiber, forage, and all caad crops. 11RC5 policy and pfasedures on prime and unique farnihndt" published In the "federal ftegl Ster Vol. e3. No. 21, January 31, 1970. Aggregation Method: No Aggregation Necessary 1la•break Rule: Lower Attachment 9 Designated Sole Source Aquifers N,-" in Region 5 Mille Lacs Aquifer r Bass Island Aquifer, Catavdba Island I ' � + I+ I , Allen County Area Mehemet Aquifer f i } h f 4( .. r ;1I 1 8k Joseph '1 RquiFer Syslei.i I j i on bhtodAquIfor System t, Plan Sant City Aquifer Miami Valley Buried Aquifer & OKI Extension of the Miami Buried Valley Aquifer Attachment m Z > « k � a n C 2 � IL 2 £ q ` IQ I k k IQ■ � � s ■ k L k k 2 fL� . I.3 Iok �!| ! k7| � ! |{� . � � • � . . . . � . � - . \ � - � | &� � � § � ■ 0 Attachment 11 Minnesota's Wild, Scenic, & Recreational Rivers Kitt son Roseau Lake of the Wand ��---- w Marshall KodAlching t 41ftIngton Bellrami -Red Lake �r Cook Polk " �Iearwat r St. Louis bake Itasca Norman ahnpma ' - Hubbard' Clay Becker Cass �✓ wad a Aitkin Carlton Wilkin -.Otter Tail Cro Wing tie Todd ..� anab c Grant Douglas M rrisort pine`' � ! e Lacs � Traverse � Benton Isanti Stevens Pope Stearns �+• �11 _ 1 Big Slone r �ISS4f a�p � 1 hisag Swill � Fork Or W Anoka m e . Vr0jA ac Oui Pail a ,. Chippewa Kandiyohi Meeker Wright Hennepin Wa hin on Renville McLeod Carver allow Medicine ;°..t�� Y Slbley Scott Dakota Lincoln Lyon Redwood 0 uaur Rice �. ' Goodhue I P ` Nicollet . Brown r, rwa¢&'s�a ipeston Murray Cottonwood Blue Earth Wasac Steele Dodge Olmsted Winona N Watonwan 1 �1 Rock Nobles Jackson Martin Faribault Freeborn Mower Flllmore Houston Map created by Minnesota Department of Natural Resources - Division of Waters Data Source: 2008 DNR Data Deli EDA IN AND FOR THE CITY OF NEW HOPE CONTRACT FOR REMOVAL OF BULK DEBRIS AND OTHER HAZARDOUS MATERIALS FROM 4511 BOONE AVE. N., NEW HOPE For valuable consideration as set forth below, this Contract dated the 21 st day of June, 2016, is made and entered into between the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota ("EDA") and Robinson Environmental, Inc., a Minnesota limited liability company ("Contractor"). 1. CONTRACT DOCUMENTS Contractor hereby promises and agrees to perform and comply with all the provisions of this Contract and the Proposal dated June 14, 2016, prepared by Contractor attached hereto as Exhibit A for the removal of miscellaneous bulk debris and other hazardous materials in preparation for demolition of the residential property located at 4511 Boone Ave. N., New Hope, Minnesota ("Property"). The Contract and Proposal shall comprise the total agreement of the parties hereto. No oral order, objection or claim by any party to the other shall affect or modify any of the terms or obligations contained in this Contract. THE WORK The work to be performed by Contractor under this Contract (hereinafter the "Work"), is defined in the Proposal as removal of hazardous waste, in preparation for demolition of the residence located on the Property. Hazardous waste includes the following base categories of material: bulk household items, furniture, appliances, mechanical equipment and electronics. CONTRACT PRICE The EDA agrees to pay Contractor the sum of $3,800.00 in exchange for Contractor furnishing labor and materials for the Work at the Property, payable within 30 days of Contractor's completion of the Work. Contractor may start work on this project upon its execution of this Contract. 4. COMPLETION DATE/LIQUIDATED DAMAGES Contractor shall complete all Work on or before June 30, 2016. ("Completion Date"). Due to the difficulty in ascertaining and establishing the actual damages which the EDA would sustain, liquidated damages are specified as follows for failure of Contractor to complete his performance under this Contract by the Completion Date: for every calendar day that the Contract shall remain uncompleted beyond the Completion Date of June 30, 2016, Contractor shall pay the EDA $50.00 per day as liquidated damages. —1— 5. INSURANCE Before beginning actual work under this Contract, Contractor shall submit to the EDA and obtain the EDA's approval of a certificate of insurance on Standard Form C.LC.C.-701 or ACORD 25 forms, showing the following insurance coverage and listing the EDA and City as a loss payee under the policies: a. General Contractor Liability: $1,000,000.00 b, Workman's Compensation: Statutory Amounts This certificate must provide for the above coverages to be in effect from the date of the Contract until 30 days after the Completion Date, and must provide the insurance coverage will not be canceled by the insurance company without 30 day's written notice to the EDA of intent to cancel. The certificate must further provide that Contractor's insurance coverage is primary coverage notwithstanding any insurance coverage carried by the City or EDA that may apply to injury or damage relating to the maintenance or repair of the City streets or rights -of -way by either the City, EDA or any employee, agent, independent contractor or any other person or entity retained by the City or EDA to perform the services described herein. All insurance is subject to the review and approval of the New Hope City Attorney. 6. LAWS REGULATIONS AND SAFETY Contractor shall give all notices and comply with all laws, ordinances, rules and regulations applicable to performance under this Contract. Contractor shall provide adequate signs and/or barricades, and will take all necessary precautions for the protection of the Work and the safety of the public. 7. INDEMNIFICATION To the fullest extent permitted by law, Contractor shall indemnify and hold harmless the EDA, its agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorney's fees, arising out of or resulting from the performance of Work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease or death, or to injury or to destruction of tangible property (other than the Work itself) including the loss of use resulting therefrom, and (2) is caused in whole or in part by any negligent act or omission of Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. —2— ASSIGNMENT Contractor shall not assign or transfer, whether by an assignment or novation or otherwise, any of its rights, duties, benefits, obligations, liabilities or responsibilities without prior written consent of the EDA. 9. NOTICE The address and telephone number of Contractor for purposes of giving notices and any other purpose under this Contract shall be 4716 67th Ave N, Brooklyn Center, MN 55429, 763-566-4242. The address of the EDA for purposes of giving notices and any other purposes under this Contract shall be 4401 Xylon Avenue North, New Hope, MN 55428. IN WITNESS WHEREOF, the parties to this Contract have hereunto set their hands and seals as of the day and year first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOCITY OF NEW H PE B��ML y Kirk McDonald Its: Executive Director Robinson Environmental, Inc. 0- By: i Lam% &Z�= Timothy Robinson Its:. , k-c:.5. —3— ATE CERTIFICATE OF LIABILITY INSURANCE D6/16/2016 ) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT Kristin Nelson NAME: Falcon West Insurance Brokers, Inc. PHONE (952)525-2290 FAX . (952)232-6216 5775 Wayzata Blvd. AIL ADDRESS:knelson@falconwestins.com Suite 700 INSURERS AFFORDING COVERAGE NAIC# St. Louis Park MN 55416 INSURER A. -United S29cialty Insurance Cc INSURED INSURERB:Star Insurance Company Robinson Environmental, Inc. INSURERC:State National Ins Co Inc 4716 67th Ave North INSURERD., INSURER E : Brooklyn Center MN 55429 1 INSURER F; Cl1VFRAr.Ffi CERTIFICATE NI IMRFR•16-17 Master Liabilitv RFVISION NIJMRFR: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ILTRNSR I T1 pE OF INSURANCE UER POLICY NUMBER �MMID OLICY mwo IYYYP LIMITS X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 2,000,000 A 7C CLAIMS -MADE OCCUR $ 100,000 MED EXP (Any one person) $ 5,000 X USA4110814 3/11/2016 3/11/2017 PERSONAL & ADV INJURY $ 2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 X PRO POLICY ❑ JECT ❑ LOC PRODUCTS - COMPIOPAGG $ 2,000,000 Pollution Liability $ 2,000,000 OTHER: AUTOMOBILE LIABILITY COMBINED iNGLE LIMIT E8 $ 1,000,000 BODILY INJURY (Per person) $ B X ANY AUTO ALL OWNED SCHEDULED AUTOS AUTOS NON -OWNED HIRED AUTOS AUTOS r CA0805118 3/11/2016 3/11/2017 BODILY INJURY (Per accident) $ PROPERTY DAMAGE (Per ac6d t $ $ UMBRELLA LIAB — EACH OCCURRENCE $ HOCCUR AGGREGATE $ EXCESS LIAB CLAIMS -MADE DED RETENTJON$ $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY YIN ANY PROPRIETOR/PARTNER/EXECUTIVE X ER - STAT TE ER E.L. EACH ACCIDENT $ 11000,000 E.L. DISEASE - EA EMPLOYEE $ 1,000,000 C OFFICER/MEMBER EXCLUDED? (Mandatory in NH) ❑ NIA NFA 0660358 02 3/11/2016 3/11/2017 E-L DISEASE - POLICY LIMIT $ 1,000,000 If yes, describe under DESCRIPTION OF OPERATIONS below DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) City of New Hope is named as additional insured as required by contract. CERTIFICATE HOLDER CANCELLATION achirpich@ci.new-hope.mn.0 City Of New Hope 4401 Xylon Ave. North New Hope, MN 55428 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE Kristin Nelson/KN�L'�' ©1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) The ACORD name and logo are registered marks of ACORD INS025 (201401) EDA IN AND FOR THE CITY OF NEW HOPE CONTRACT FOR DEMOLITION OF SITE IMPROVEMENTS, UTILITY WORK, TREE REMOVAL AND SITE GRADING AT 4511 BOONE AVE. N. For valuable consideration asset forth below, this Contract dated the � day of June, 2016, is made and entered into between the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota ('EDA") and LEADENS EXCAVATING, INC., a Minnesota corporation ("Contractor"). CONTRACT DOCUMENTS Contractor hereby promises and agrees to perform and comply with all the provisions of this Contract pursuant to the specifications for demolition, utility work, tree removal and site grading attached hereto as Exhibit A for the demolition of all building and site improvements, utility work, tree removal and re -grading of the residential property located at 4511 Boone Ave. N., New Hope, Minnesota ("Property"). The Contract including specifications on Exhibit A shall comprise the total agreement of the parties hereto. No oral order, objection or claim by any party to the other shall affect or modify any of the terms or obligations contained in this Contract. 2. THE WORK The work to be performed by Contractor under this Contract (hereinafter the "Work"), is defined in the Proposal as demolition of all building and site improvements located on the Property, utility work, tree removal and re -grading of the Property. As part of the Work, Contractor agrees to remove all excess material from the Property. 3. CONTRACT PRICE The EDA agrees to pay Contractor the sum of $18,865 in exchange for Contractor furnishing labor and materials for the Work at the Property, payable within 30 days of Contractor's completion of the Work. Contractor may start work on this project upon its execution of this Contract and providing proof of insurance pursuant to paragraph 5. 4. COMPLETION DATE/LIQUIDATED DAMAGES Contractor shall complete all Work on or before July 31, 2016 ("Completion Date"). Due to the difficulty in ascertaining and establishing the actual damages which the EDA or City would sustain, liquidated damages are specified as follows for failure of Contractor to complete his performance under this Contract by the Completion Date: for every calendar day that the Contract shall remain uncompleted beyond the Completion Date of July 31, 2016, Contractor shall pay the EDA $50.00 per day as liquidated damages. —1-- INSURANCE Before beginning actual work under this Contract, Contractor shall submit to the EDA and obtain the EDA's approval of a certificate of insurance on Standard Form C.I.C.C.-701 or ACORD 25 forms, showing the following insurance coverage and listing the Contractor as a loss payee under the policies: a. General Contractor Liability: $1,000,000.00 b. Workman's Compensation: Statutory Amounts The EDA and the City shall be named as an Additional Insureds in regard to the General Contractor Liability forms where required by written contract on a primary and non-contributory basis, including completed operations. This certificate must provide for the above coverages to be in effect from the date of the Contract until 30 days after the Completion Date, and must provide the insurance coverage will not be canceled by the insurance company without 30 days written notice to the EDA of intent to cancel. The certificate must further provide that Contractor's insurance coverage is primary coverage notwithstanding any insurance coverage carried by the EDA that may apply to injury or damage relating to the maintenance or repair of the City streets or rights -of -way by either the City, EDA or any employee, agent, independent contractor or any other person or entity retained by the City or EDA to perform the services described herein. All insurance is subject to the review and approval of the New Hope City Attorney. 6. LAWS REGULATIONS AND SAFETY Contractor shall give all notices and comply with all laws, ordinances, rules and regulations applicable to performance under this Contract. Contractor shall provide adequate signs and/or barricades, and will take all necessary precautions for the protection of the work and the safety of the public. INDEMNIFICATION To the fullest extent permitted by law, Contractor shall indemnify and hold harmless the City, EDA, their agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorney's fees, arising out of or resulting from the performance of Work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease or death, or to injury or to destruction of tangible property (other than the Work itself) including the loss of use resulting therefrom, and (2) is caused in whole or in part by any negligent act or omission of Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. —2— ASSIGNMENT Contractor shall not assign or transfer, w any of its rights, duties, benefits, obligations, 1 consent of the EDA. 9. NOTICE The address and telephone number of purpose under this Contract shall be 10677 7 The address of the EDA for purposes of gi Contract shall be 4401 Xylon Avenue North, New IN WITNESS WHEREOF, the parties to seals as of the day and year first above writtenll ier by an assignment or novation or otherwise, Ities or responsibilities without prior written ctor for purposes of giving notices and any other Lane, Hanover, MN 55341. notices and any other purposes under this MN 55428. Contract have hereunto set their hands and EC O O1VIIC DEVELOPMENT AUTHORITY IN AND FORT C Y OF NEW HOPE n By: Kirk McDonald Its: Executive Director M TENS EXCAVATING, INC. Its: � _ Exhibit A Specifications See attached. P:Wttorney\SAS\1 Client Files\2 City of New Hope\99-11391 Purchase of 6065 Louisiana Ave. N. by EDA\Demolition and Grading Contract.doc From: The Economic Development Authority in and for the City of New Hope Subject: Request for quotes for demolition, site grading and utility work at 4511 Boone Avenue North Overview: The City of New Hope EDA is the owner of the property addressed as 4511 Boone Avenue North, (P.I.D. 07-11-82-13-40-030 ). The City is requesting quotes for demolition of all building and site improvements at this location followed by limited grading of the primary excavation area and installation of utility improvements. If you are interested in submitting a quote for this project, please review the enclosed specifications and inspect the site. To gain entry into the home, use the lock box on the front door, code 3902. Please call Aaron Chirpich in the Community Development Department with any questions, 763-531-5114. Proposals must be completed on the enclosed bid form and submitted by 1:00 p.m. on June 21st, 2016. Proposals may be submitted by U.S. Mail, e-mail or in person; please note the enclosed bid form must be used. City staff will review the submitted proposals and forward them to the City Council. City staff expect the Council to select a demolition contractor at their June 27th meeting. The selected contractor would be required to complete the demolition and site grading work in accordance with the attached specifications no later than July 31st 2016. Submit proposals to the following: Attn: Aaron Chirpich City of New Hope Community Development Department 4401 Xylon Ave, North New Hope MN, 55428 ahirpich@ci.new-hope.mn.us Property Owner: City of New Hope EDA Property Address: 4511 Boone Avenue North (P.I.D. 07-11-82-13-40-030) a) For a price of $ /� 'r the contractor named below proposes to fully complete the work in accordance with the attached specifications for demolition, site grading and utility work at 4511 Boone Avenue North, no later than July3lst, 2016. Name of Contractor: License Number: Z D6 7 -) - '~ = %,L , ASS 391 Telephone: 2- 9 p — G( °1 3 E-mailAddress: Contractor Signature: Date: Title: () �, , , A. Scope of Work 1. General a. Contractor shall furnish all labor, materials and equipment, and shall perform all service and work required to remove the buildings, structures and improvements from the site, post demolition grading of the site and utility work in strict accordance with these specifica- tions and in accordance with all applicable ordinances and laws pertaining to removal of buildings, structures, grading and erosion control. b. Contractor shall thoroughly review these specifications and examine the site to evaluate existing and proposed conditions prior to making a quote. Failure to do so shall in no way relieve contractor from performing the work as required or be grounds for a claim for extra payment. 2. Demolition and Disposal of Buildings and Site Improvements a. All buildings and site improvements on the site shall be removed and properly disposed. Demolition to include, but not limited to stairs, ramps, floor slabs, equipment bases, driveways, aprons, foundation walls and footings, and other structure components, appurtenances and contents associated with each structure, unless noted otherwise. b. All demolition materials, substrates, debris, waste, or other materials shall be collected, stored, handled, managed, and disposed in accordance with currently accepted practices at an approved, licensed, or permitted facility in accordance with applicable federal, state, and local ordinances, rules, and regulations. 3. Backfill, Compaction and Grading a. No demolition material shall be left in, or placed in any excavation. The new home being built on the lot is going to be a walkout. As such, no backfilling of the primary excavation will be necessary. Contractor is to "soften" the edges of the excavation to create gradual slopes in order to mitigate sluffing or cave-ins. b. The finished grade shall be determined by matching the existing average grade of the excavation area prior to demolition. The final grade shall maintain pre demolition drainage patterns. No imported topsoil or fill is required. 4. Tree and Vegetation Removal a. The City Forester has marked all trees for removal with green paint (3) total. The stumps of the removed trees shall be ground to a level of 1 foot below grade. Contractor is to include removal of the marked trees and stump grinding costs in the demolition bid. 5. Abandonment of Wells a. The city does not know of any wells on the property. Discovery of any wells shall require contractor to halt the demolition work until well sealing can be completed. Contractor is not entitled to additional compensation for any delays resulting from the necessity to halt demolition work for such well sealing, except that the completion deadline shall be extended in proportion to the delay. 6. Utilities a. Contractor shall be responsible for calling Gopher State One Call for the location of any underground utilities prior to commencement of demolition and site grading work. b. The city has ordered the disconnection of electricity (Excel Energy) and natural gas (Centerpoint Energy) services for the property. Contractor shall field verify disconnections prior to demolition. Other private communication utilities such as telephone and cable may still be connected; if so, contractor shall roll them back and secure them at the pole prior to demolition. c. Contractor is to coordinate the shut off of water with Public Works to ensure that the water is off before termination of the water service. Contractor is to remove the water line all the way to the curb stop. Contractor is to install new curb stoR and box as Rart of the water disconnection. Inspection by the City will be required prior to backfilling of the trench. Contractor is to document and mark on -site, the location of the water service. d. Contractor is to coordinate the termination of the private sewer line with Public Works. The sewer line should be removed to within 3 feet of the property line and the remaining service stub shall be lined with CIPP lining all the way to the main. Once the service stub is lined, the end shall be capped in preparation of the connection to the new home. Inspection by the City will be required prior to backfilling of the trench. Contractor is to document and mark on -site, the location of the sewer service. CC a 7. Asbestos and Other Hazardous Materials a. This home sustained severe fire damage in 2013. Due to the fire, it would be difficult to assess all hazardous materials within the home. As a result, the city has not secured a demolition survey of the home in order to identify asbestos containing materials. Contractor should plan on taking all construction debris to a landfill that is certified for potentially hazardous materials including asbestos. b. The City has contracted with an abatement contractor for the removal of all bulk personal items including: furniture beds and electronics. The same abatement contractor will also remove all appliances including: washer, dryer, refrigerator, dishwasher, furnace air conditioner, microwave and water heater. 8. Permits and Inspections a. Contractor will complete and submit the City of New Hope demolition permit application. Permit fees for the demolition permit will be waived, however the State surcharge will still be collected as the City can not waive that portion. The private water and sewer service terminations will be inspected by City Public Works staff. A separate water and sewer disconnection permit must be secured from the City. The same fees will be waived for this permit. b. If any permits from other governmental agencies are required, contractor shall, at contractor's own expense, secure such permits, pay any fees and complete any inspections required by same, and provide a copy of the permit to the City. c. Contractor shall submit "Notification of Intent to Perform a Demolition' Form to the MPCA. 9. Miscellaneous Provisions, and Notices a. Contractor shall erect and maintain all necessary barricades and warnings to adequately safeguard workers, adjacent property, and the public. b. The demolition and clearing of the site shall be carried out in such a manner to preclude damage to adjacent property or public right-of-way. c. Water is available at no cost from the City by accessing adjacent hydrants. Please notify New Hope Public Works one week in advance if water is needed. d. Submission of a proposal will constitute an incontrovertible representation by contractor that contractor has complied with every requirement of these specifications and attachments thereto; that without exception the proposal is premised upon performing and furnishing the work including but not limited to the specific means, methods, techniques, sequences, procedures or precautions expressly required by these specifications and attachments thereto; that contractor has received from City satisfactory written resolution of any conflicts, errors, ambiguities, and discrepancies; and that these specifications and attachments thereto are generally sufficient to indicate and convey understanding of the terms and conditions for performing and furnishing the work. 10. Attachments ■ None ACD-RDTU CERTIFICATE OF LIABIL PRODUCER (763)425-4151 FAX (763)425-6650 CITY -COUNTRY AGENCY 317 CENTRAL AVENUE P.O. BOX 437 OSSEO, MN 55369 INSURED Leadens Excavating, Inc. 10677 Jonquil Lane Hanover, MN 55341 ITY INSURANCE DATE 02/18/ZO16) THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW, INSURERS AFFORDING COVERAGE NAIC # INSURER A: Owners Insurance INSURER B: INSURER C: INSURER D: INSURER E: THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE P ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHII MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TD ALL THE TEF POLICIES, AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TR Dp' TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE POLICY EXPIRATIOI, GENERAL LIABILITY 08365948 01/01/2016 01/Ol/2017 X COMMERCIAL GENERAL LIABILITY CLAIMS MADE a OCCUR A GEN'L AGGREGATE LIMIT APPLIES PER: POLICY X PRO- JECT LOC AUTOMOBILE LIABILITY 49-365948 61/01/2016 01/01/7-017 ANY AUTO ALL OWNED AUTOS A X SCHEDULED AUTOS X HIRED AUTOS X NON -OWNED AUTOS GARAGE LIABILITY -1 ANY AUTO EXCESS/UMBRELLA LIABILITY 49-365948-01 01/01/2016 01/61/2 117 OCCUR 7 CLAIMS MADE A jI DEDUCTIBLE j RETENTION $ WORKERS COMPENSATION AND EMPLOYERS' LIABILITY A ANY PROPRIETORIPARTNEWEXECUTIVE OFFICER/MEMBER EXCLUDED? If Yes. describe under SPECIAL PROVISIONS below OT ER nand Marine 081197281 01/01/20161 01/01/2017 083659481 01/01/20161 01/01/2017 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS City of New Hope achirpich@ci.new-hope.mn.us 7LICY PERIOD INDICATED. NOTWITHSTANDING :H THIS CERTIFICATE MAY BE ISSUED OR MS, EXCLUSIONS AND CONDITIONS OF SUCH LIMITS EACH OCCURRENCE $ 11000,000 DAMAGE TO RENTED $ 300,000 MED EXP (Any one person) $ 10,000 PERSONAL & ADV INJURY $ 1, 00,000 GENERAL AGGREGATE $ 2,000,000 PRODUCTS - COMPIOPAGG $ 2,000,00 COMBINED SINGLE LIMIT i (Ea accident) 1,000,000 BODILY INJURY $ (Per person) BODILY INJURY $ (Per accident) PROPERTY DAMAGE $ (Per accident) AUTO ONLY - EA ACCIDENT $ OTHER THAN EA ACC $ AUTO ONLY: AGG $ EACH OCCURRENCE $ 1,000,000 AGGREGATE $ 2,000,000 $ WC STATU• I OTH- E L EACH ACCIDENT $ 500, 00 E L. DISEASE - EA EMPLOYEE $ 500, 000 E L DISEASE - POLICY LIMIT $ 500.000 $539,522 Value SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 10 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER. ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE ACORD 25 (2001/08) FAX: 763 . 531.5136 . , ©ACORD CORPORATION 1988 IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. AGVKU 25 (20UMB) IN PROCEEDINGS SUBSEQUENT TO INITIAL REGISTRATION STATE OF MINNESOTA COUNTY OF HENNEPIN In the matter of the Petition of Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota For a New Certificate of Title After Mortgage Foreclosure DISTRICT COURT FOURTH JUDICIAL DISTRICT Case type: Other Civil — Torrens PETITION under Minn. Stat. § 508.58 TO THE HONORABLE JUDGES OF THE DISTRICT COURT OF HENNEPIN COUNTY: Comes now the Petitioner and shows to the Court as follows: That on February 3 2006 the Registrar of Titles entered Certificate of Title No.1175782 to Adolphus B. Scott for land described as Lot 3, Block 3, Holiday Hills, Hennepin County, Minnesota. 2. That there are registered on the Certificate of Title recitals and memorials as shown on the attached Exhibit A. 3. That mortgage Document No. T-4222336 was executed after July 1, 1987, that the amount claimed to be due and owing as of the date of the notice of the foreclosure sale was more than two-thirds of the principal amount secured by the mortgage, and that the mortgaged premises are less than 40 acres in size and were not in agricultural use as defined in Minn. Stat., §40A.02, Subd. 3. 4. That the land described in the mortgage is not "agricultural property" as defined in Minn. Stat., §583.22, Subd. 2 which would be subject to the provisions of the farmer -lender mediation act. 5. That more than 6 months have elapsed since the date of the mortgage foreclosure sale, that there has been no redemption therefrom, except for the junior creditor redemption by Petitioner as shown on the attached Sheriffs Certificate of Redemption recorded as Document No. T053 343 73 on March 22, 2016, and that the statutory period for the time of redemption has expired. 6. That no bankruptcy proceedings have been instituted by or against Adol2hus B, Scott through the period of redemption from the mortgage foreclosure proceedings. 7. That Adolphus B. Scott was not in the military service of the United States as of the date of the mortgage foreclosure sale or for one year prior to it or for 6 months after it. That the premises are vacant. 9. That by reason of said junior creditor redemption following mortgage foreclosure Petitioner is now the owner of said premises free and clear of all interests of Adolphus B. Scott, Mort a e Electronic Re istration S stems Inc. as nominee for Southstar Fundiniz, LLC successors and assigns, The Bank of New York Mellon f Wa The Bank of New York as successor Trustee to JPMor an Chase Bank NA as Trustee for Certif cateholders of Structured Asset Mortgage Investments II Trust 2006-AR4 Mortgage Pass -Through Certificates Series 2006-AR4 Trinity Financial Services LLC Main Street Capital Partners Inc. Capital Equity LLC and all junior liens memorialized on said Certificate of Title. 10. That the address of Petitioner (the party to whom the new certificate of title should be issued) is 4011 Xylon Avenue North, New Hope, MN 55428. Wherefore Petitioner prays for an Order directing the Registrar to cancel Certificate of Title No. 1175782 and to enter a new Certificate of Title in favor of Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota for the land described therein free from all current recitals and the memorials. Date: Signed: Stacy A. Woods Attorney's Name: Stacy A. Woods Firm Name: Jensen Sondrall Persellin & Woods, P.A. Attorney Registration No.: 261658 Address: 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 Telephone: 763 -424-8 811 2 VERIFICATION [By Officer of a Legal Entity] STATE OF MINNESOTA) ) SS. COUNTY OF HENNEPIN) Kirk McDonald having been first duly sworn on oath, deposes and states that he is the Executive Director of the Economic Development Authority in and for the City of New Hope a public body corporate and politic created pursuant to the laws of the State of Minnesota, the Petitioner in the above entitled proceeding, that he has read the foregoing Petition and the same is true of his own knowledge, except as to matters therein stated on information and belief and as to such matters he believes to be true. Kirk McDonald Signed and sworn to (or affirmed) before me on2016 by Kirk McDonald. Notary Public DAVIDEWALKER-CRAWFORD Notary Public State of Minnesota My Commission Expires January31, 2021 \\jspserver\data\Attomey\SAS\l Client Files\2 City of New Hope\99-11381 4511 Boone Ave. N\PetitionAfterMortgageForeelosure (1).rtf PURCHASE AND REDEVELOPMENT AGREEMENT This Purchase and Redevelopment Agreement ("Agreement") is made by and between NOVAK-FLECK INCORPORATED a Minnesota corporation ("Buyer") and the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA, a public body corporate and politic created pursuant to the laws of the State of Minnesota ("Seller") effective July 14, 2016, 2016. In consideration of the covenants and agreements of the respective parties as hereinafter set forth, Seller shall sell and Buyer shall purchase the vacant parcel of real property located in the City of New Hope at the property address of 4511 Boone Avenue North, New Hope, Minnesota, and legally described as Lot 3, Block 3, Holiday Hills, Hennepin County, Minnesota (the "Property"). 1. Purchase Price. The purchase price for the Property is Fifty -Five Thousand and No/100 Dollars ($55,000.00) (the "Purchase Price"), which Buyer shall pay as follows: an initial payment of Two Thousand and No/100 Dollars ($2,000.00) (the "Earnest Money"), which sum shall be paid to Seller upon Buyer and Seller's execution of this Agreement and Fifty -Three Thousand and No/100 Dollars ($53,000.00) payable by wire, cashier's check or cash on the "Date of Closing", as that term is defined in paragraph 4 below. There are no items of personal property or fixtures included in this sale. 2. Title Conveyed. On the Date of Closing, Seller shall deliver a Quit Claim Deed (the "Deed") to Buyer conveying marketable title of record, free and clear of liens, encumbrances, assessments and restrictions, except for the "Permitted Encumbrances" set forth on Exhibit A and the restrictive covenants referenced below in paragraph 4.b. 3. Representations of Seller. Seller represents and agrees as follows: a. Seller owns the Property and has the right to sell the same, and that there are no unrecorded contracts, leases, easements or other agreements or claims of any third parry affecting the use, title, occupancy or development of the Property, there are no parties other than Seller in possession of any portion of the Property, and no person, firm or entity has any right of refusal, option or other right to acquire all or any part of the Property. b. Seller has not received any notice from any governmental authority concerning any eminent domain, condemnation, special taxing district, or rezoning proceedings. C. To the best of Seller's knowledge without inquiry there are no septic systems or wells on the Property. d. Seller represents that it has the requisite power and authority to enter into and perform this Agreement and any Seller's Closing Documents signed by it. C. Seller is not a "foreign person," "foreign partnership," "foreign trust" or "foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code. f. To the best of Seller's knowledge without inquiry, no above ground or underground tanks are located in or about the Property. g. Seller makes no other warranties as to the condition of the Property. Seller agrees that any breach of Seller's forgoing representations shall be grounds for Buyer to terminate this Agreement. In the event of such termination, the Earnest Money shall be returned. Wherever herein a representation is made "to the best of Seller's knowledge," such representation is limited to the actual knowledge of the Mayor and/or City Manager of Seller. 4. Representations of Buyer. As an essential part of this Agreement and in order to induce Seller to enter into this Agreement and sell the Property, Buyer hereby represents to Seller: a. SUBJECT TO THE FOREGOING REPRESENTATIONS BY SELLER, BUYER HEREBY ACKNOWLEDGES THAT BUYER IS PURCHASING THE PROPERTY IN "AS IS" CONDITION AS TO THE USE OF THE PROPERTY. Buyer understands and agrees that the Purchase Price is the fair market value of the Property in its "AS IS" condition. Buyer acknowledges that they have inspected or have had the opportunity to inspect the Property and agree to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for the purpose of determining if the soil is suitable for construction of the home described in paragraph 9 below. If the soil is determined to be unacceptable Buyer may rescind this Agreement by written notice to Seller, in which case the Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer. b. Buyer agrees the first sale of the home on the Property will be sold to an owner - occupant. An "owner -occupant" shall be defined as an individual(s) that purchases the home from Buyer by warranty deed or a contract for deed and intending to reside in the home as a primary residence. To insure the intent of the parties that the home constructed on the Property is purchased by an owner - occupant Buyer will record restrictive covenants and an assessment agreement against the Property prohibiting the leasing of the home for a period of twelve (12) months after the sale of such home by Buyer to an owner -occupant of such home which shall be recorded against the title of the Property with the Hennepin County Registrar of Title's Office. The restrictive covenants and assessment agreement shall be substantially in the form of the documents attached hereto as Exhibits B and C, respectively. Further, the restrictive covenants and assessment agreement shall provide that the City may levy a $20,000.00 assessment on the Property prior . to its sale if it is not being sold to an owner -occupant. The City shall release the Property from these restrictive covenants and assessment agreements upon the issuance of a certificate of occupancy for the construction of the home on the Property and upon the receipt by the City of an affidavit signed by Buyer and owner -occupant verifying owner -occupant's intent to reside in the home as their primary residence in compliance with the restrictive covenants described herein in the form attached as Exhibit B. C. Within one (1) year of Closing, Buyer shall complete the construction of the home on the Property (the Improvements). The Improvements must be consistent with all building and zoning requirements and the restrictive covenants applicable to the Property. The representations set forth in this paragraph shall be incorporated into appropriate documents to be recorded against the Property (whether by declaration, restrictive covenants, or development agreement as hereinafter defined) subject to approval by Seller and Buyer as a condition of Closing. 5. Title Commitment and Policy. a. Seller shall deliver to Buyer a Commitment for an ALTA Form B owner's policy of title insurance (the "Commitment") issued by Home Title and covering title to the Property, in the amount of the Purchase Price. Buyer agrees to pay the costs associated with the preparation and issuance of the Commitment; Buyer shall pay the premium for the owner's policy, if any, and the lender's policy, if any, along with the price for any endorsements requested by Buyer or Buyer's lender. b. Buyer shall have fifteen (15) days after receipt of the Commitment to review and approve the title to the Property and to object to any exception to title that is disclosed in the Commitment or which is otherwise discovered by Buyer. In the event that Buyer does not within such fifteen (15) day period give notice to Seller objecting to any such exceptions, then all such exceptions shall be deemed approved and shall be considered a part of the Permitted Encumbrances. If Buyer timely objects to an exception to title, then on or before the tenth (10) day following Buyer's notice of exception, Seller shall remove the exception or notify Buyer that Seller is unwilling or unable to remove the exception. Within five (5) days of any notice by Seller that Seller it is unable to remove an exception to title, Buyer may elect by notice to Seller to either: (i) terminate this Agreement, whereupon all of the Earnest Money shall be returned to Buyer and the parties shall be released from all further obligations hereunder except obligations under this Agreement which provide for continued exercise following the cancellation or other termination of this Agreement; or (ii) elect to have this Agreement remain in effect, in which event Buyer will be deemed to have approved the previously -cited exception and the same shall be considered part of the Permitted Encumbrances. 7 6. Closing. a. Closing shall occur on or before July 29, 2016 (the "Date of Closing" or "Closing"), unless both parties agree, in writing, to an earlier or later time. b. Closing shall occur at Novak -Fleck Incorporated, 8857 Zealand Avenue North, Brooklyn Park, MN 55445. C. Seller shall deliver at closing the following executed and acknowledged documents: (i) the Deed; (ii) affidavit(s) in industry -standard form(s) stating that possession of the Property is being delivered free of any mechanic's or statutory liens in connection with work performed prior to closing; Seller is not a foreign person or entity; and addressing such other matters as Buyer may reasonably require. 7. Payments/Prorations. At Closing, Seller shall pay the cost of recording any instrument (other than the Deed) necessary to place title in the condition required under this Agreement, State deed tax, and all special assessments levied, pending or constituting a lien against the Property as of the Date of Closing, including without limitation any installments of special assessments and interest payable with general real estate taxes in the year of closing. Seller will pay general real estate taxes payable in the year prior to the year of closing and all prior years. Buyer shall pay at Closing the cost of the owner's policy or lender's policy of title insurance (if any), sales tax (if any) resulting from the Closing, the fees required for recording the Deed, and Purchase and Redevelopment Agreement, and all customary closing fees charged by the Title Company or other closing agent, if any, utilized to close the transaction contemplated by this Agreement. General real estate taxes payable in the year of closing shall be prorated by Seller and Buyer as of the closing date based upon a calendar year. Each party shall pay its own attorney's fees. 8. Condemnation. If, prior to the Date of Closing, all or any part of the Property shall be condemned by governmental or other lawful authority, Buyer shall have the option of (a) completing the purchase contemplated by this Agreement, in which event all condemnation proceeds or claims thereof shall be assigned to Buyer, or (b) canceling this Agreement, in which event the Earnest Money shall be refunded and this Agreement shall be terminated with neither party having any rights against or obligations to the other except rights or obligations under this Agreement which provide for continued exercise following closing or cancellation or other termination of this Agreement, and Seller shall be entitled to any and all condemnation proceeds. 9. Construction of Home. Buyer agrees that it will construct a new single family home on the Property. This covenant shall survive the delivery of the Deed. 4 a. The single family home described in this paragraph is referred to as the "Minimum Improvements. b. The Minimum Improvements shall consist of a new single family home, and shall be constructed substantially in accordance with the RFP Guidelines attached as Exhibit D and the proposal approved by Seller on May 23, 2016 attached as Exhibit E. C. Construction of the Minimum Improvements must be substantially completed within one (1) year following Closing. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of New Hope building inspector. d. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of Buyer to construct such Minimum Improvements (including the date for completion thereof), Seller will furnish Buyer with a Certificate of Completion for such improvements. Such certification by Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the Deed with respect to the obligations of Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof. The certificate provided for in this paragraph of this Agreement shall be in such form as will enable it to be recorded in the Hennepin County Registrar of Title's Office and other instruments pertaining to the Property. If Seller shall refuse or fail to provide any certification in accordance with the provisions of this paragraph, Seller shall, within thirty (30) days after written request by Buyer, provide Buyer with a written statement, indicating in adequate detail in what respects Buyer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of Seller for Buyer to take or perform in order to obtain such certification. C. Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (i) Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer"), without the prior written approval of Seller's City Council. The term "Transfer" does not include 5 encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable Buyer or any successor in interest to the Property, or any part thereof, to construct the Minimum Improvements or component thereof. (ii) If Buyer seeks to effect a Transfer prior to issuance of the Certificate of Completion, Seller shall be entitled to require as conditions to such Transfer that; (1) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of Seller, necessary and adequate to fulfill the obligations undertaken in this Agreement by Buyer as to the portion of the Property to be transferred; and (2) Any proposed transferee, by instrument in writing satisfactory to Seller and in form recordable in the public land records of Hennepin County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of Seller, have expressly assumed all of the obligations of Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by Seller) deprive Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by Seller to the contrary, no such transfer or approval by Seller thereof shall be deemed to relieve Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto. 6 (3) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subparagraph e. shall be in a form reasonably satisfactory to Seller. (iii) If the conditions described in paragraph (2) above are satisfied then the Transfer will be approved and Buyer shall be released from its obligation under this Agreement, as to the portion of the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (iii) apply to all subsequent transferors. (iv) Upon issuance of the Certificate of Completion, Buyer may transfer or assign the Minimum Improvements and/or Buyer's rights and obligations under this Agreement with respect to such Property without the prior written consent of Seller. f. Buyer agrees that (a) it will use the Minimum Improvements only as a single family, owner -occupied home, (b) it will not seek exemption from real estate taxes on the Property under State law, and (c) it will not transfer or permit transfer of the Property to any entity whose ownership or operation of the property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of New Hope or Seller in accordance with this Agreement). The covenants in this paragraph run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for at least 30 years after the Date of Closing. g. Buyer shall comply with all recommendations of the City Engineer. h. Buyer's construction plans shall be approved by the City Building Official 10. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to Buyer and prior to receipt by Buyer of the Certificate of Completion of the Minimum Improvements, Buyer fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure; abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from Seller to Buyer to do so, then Seller shall have the right to re- enter and take possession of the Property and to terminate (and revert in Seller) the estate conveyed by the Deed to Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of Buyer and failure on the part of Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, 7 Seller at its option may declare a termination in favor of Seller of the title, and of all the rights and interests in and to the Property conveyed to Buyer, and that such title and all rights and interests of Buyer, and any assigns or successors in interest to and in the Property, shall revert to Seller, but only if the events stated in this paragraph have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this paragraph, Seller shall have no right to reenter or retake title to and possession of a portion of the Property for which a Certificate of Completion has been issued. 11. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in Seller of title to and/or possession of the Property or any part thereof as provided in paragraph 10, Seller shall apply the Purchase Price paid by Buyer under paragraph 1 of this Agreement as follows: a. First, to reimburse Seller for all costs and expenses incurred by Seller, including but not limited to proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by Seller from the property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of ownership thereof by Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by Seller assessing official) as would, have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof, and any amounts otherwise owing Seller by the Buyer and its successor or transferee; and b. Second, to reimburse Buyer for the balance of the Purchase Price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to the Buyer upon delivery of an executed, recordable warranty deed to the Property by the Buyer to Seller. 12. Notices. All notices required hereunder shall be in writing and shall be deemed to have been duly given and received (a) two (2) business days after depositing of the same in the mail if sent by regular, registered or certified mail, postage prepaid, to the party to whom directed, at such parry's address herein set forth; or (b) upon delivery, or attempted delivery if delivered by overnight courier service or hand delivery. Any party shall have the right to designate any other address or facsimile number for notice purposes by 8 written notice to the other party in the manner aforesaid. The addresses of the parties are as follows: SELLER: City of New Hope Kirk McDonald, City Manager 4401 Xylon Avenue North New Hope, MN 55428-4898 with copy to: Stacy A. Woods, New Hope Assistant City Attorney Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 BUYER: NOVAK-FLECK INCORPORATED 8857 Zealand Avenue North Brooklyn Park, MN 55445-1895 with copy to: 13. No Broker Involved. Seller and Buyer represent and warrant to each other that there is no broker involved in this transaction with whom it has negotiated or to whom it has agreed to pay a broker commission. Buyer agrees to indemnify Seller for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Seller. 14. Remedies. If Buyer defaults under this Agreement, Seller shall have the right to terminate this Agreement by giving written notice to Buyer as provided by law. If Buyer fails to cure such default as provided by law, this Agreement will terminate, and upon such termination Seller will retain the Earnest Money and neither parry shall have any rights or obligations against the other except rights or obligations under this Agreement which provide for continued exercise following the cancellation or other termination of this Agreement. If Seller defaults under this Agreement, Buyer's only remedy shall be to terminate the Agreement and recover the Earnest Money paid to Seller. Buyer shall not have any right to the remedy of specific performance 15. Assignment/Prohibition Against Transfer of Property. Buyer may not assign its rights and obligations hereunder without the prior written consent of Seller, which consent may be granted or withheld by Seller in its sole discretion. 16. Miscellaneous. This Agreement shall be governed by the laws of the State of Minnesota. No amendment of this Agreement shall be valid or binding unless executed by authorized representatives of both Seller and Buyer. The headings and captions of this Agreement 4 are for the convenience of the parties only and shall not be looked to in the interpretation or enforcement of this Agreement. Seller and Buyer acknowledge and agree that each has had opportunity to participate in the drafting of this Agreement and accordingly acknowledge and agree that this Agreement as a whole and each of is clauses are not to be interpreted in favor of or against either party. This Agreement may be signed in counterpart, with each copy of the Agreement binding upon the signing party at the time of signing and together which shall constitute a single document. 17. Survival. The Parties representations contained herein shall survive the delivery of the Deed. IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the above date ("Effective Date"). SELLER: ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW OPE By: Kat i Hemken Its: President Dated: 2016 , 2016 ti . By: Kirk McDonald Its: Executive Director Dated: J v* �— .2016 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) BUYER: Dated: It J I bi, 2016 The foregoing instrument was acknowledged before me this l day of , 2016, by Kathi Hemken and Kirk McDonald, the President and Executive Director, respective y, of the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota. ;�) �, cr . QI#(-, Notary Public 10 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this(O4day of 2016, by Richard Novak, the President of Novak -Fleck Incorporated, a Minnesota core ration on behalf of the corporation. :*:y ANDICE L. JOHNSON otary Public -Minnesota Commisslon Explres Jan 31, 2020 DRAFTED BE Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, #201 Brooklyn Park, MN 55443 (763) 424-8811 11 i Modurl •Pkisitz 'L � Ma i I' Exhibit A Permitted Encumbrances 1. Restrictions, reservations, covenants and easements relating to use or improvement of the Property without effective forfeiture provisions of record on the Effective Date; 2. Building and zoning laws, ordinances, city, state and federal regulations; 3. Governmental regulations, if any, affecting the use and occupancy of the Property; 4. All rights in public highways upon the land; Easements for public rights -of -way and public and private utilities, which do not interfere with present improvements; 6. Reservations to the State, in trust for the taxing districts concerned, of minerals and mineral rights in those portions of the Property the title to which may have at any time heretofore been forfeited to the State for nonpayment of real estate taxes. 7. The lien of unpaid special assessments, if any, not presently payable but to be paid as a part of the annual taxes to become due; 8. The lien of unpaid real estate taxes, if any, not presently payable but to be paid as part of the annual taxes to become due. 12 Exhibit B Restrictive Covenants See attached. 13 RESTRICTIVE COVENANTS THESE RESTRICTIVE COVENANTS ("Agreement") dated effective the 21st day of July, 2016, by and between the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota ("EDA") and Novak -Fleck Incorporated, a Minnesota corporation ("Novak -Fleck"). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between the EDA and Novak -Fleck dated effective July 14, 2016 ("Purchase Agreement"), Novak -Fleck purchased the real property located at 4511 Boone Avenue North in the City of New Hope from EDA, which property is legally described as Lot 3, Block 3, Hennepin County, Minnesota ("Property") which purchase closed on July 21, 2016; and WHEREAS, Novak -Fleck has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the EDA and Novak -Fleck have agreed Novak -Fleck shall complete the construction of the home as described in the Purchase Agreement within one (1) year of the date of closing on the purchase of the Property; and WHEREAS, the EDA and Novak -Fleck have agreed the EDA may levy a $20,000.00 assessment against the Property prior to Novak -Fleck's sale of the Property with the completed home if it is not being sold to an owner -occupant. Further, said assessment may be certified to Hennepin County for collection with real estate taxes payable in a single installment; and WHEREAS, compliance with the restrictions imposed by this Agreement are additional consideration for the sale of the Property to Novak -Fleck. 1 NOW THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, Novak -Fleck agrees as follows: AGREEMENT Restrictive Covenants. Novak -Fleck hereby covenants and agrees with the EDA that the Property is restricted by the following covenants: a) The initial conveyance of the residential dwelling ("Dwelling") constructed upon the Property will be only to "Owner -occupants)". "Owner -occupant" is defined as an individual that purchases the Property from Novak -Fleck with a bona fide intent to reside in the Dwelling as a primary residence; and b) The Dwelling constructed on the Property shall be occupied only by the Owner - occupant, and/or by the "Immediate Family Member(s)" of the Owner -occupant for a period of twelve (12) consecutive months commencing on the date of initial conveyance to an Owner -occupant. "Immediate Family Member" shall only mean a parent, step-parent, child, step -child, grandparent, grandchild, brother, sister, uncle, aunt, nephew or niece. Relationship may be by blood or marriage. 2. Release of Restrictions. The Property will be released from the restrictions imposed by this Agreement as follows: a) Upon the issuance of a Certificate of Occupancy for a Dwelling constructed upon the Property and receipt by the EDA of an Affidavit signed by Novak -Fleck and the Owner -occupant verifying the Owner -occupant's intent to occupy the Dwelling as a primary residence the Property shall be released from the restriction stated in paragraph 1(a) above. b) The Property shall be released from the restriction of paragraph 1(b) above on the one (1) year anniversary of the date the Property was conveyed in compliance with paragraph 1(a). 3. Waiver by EDA. Notwithstanding the restrictions stated above, the EDA may waive the restrictions stated above upon a finding of hardship or other extenuating circumstances sufficient to justify the waiver in its sole discretion. 4. Agreement to Assessment. Novak -Fleck acknowledges and agrees the EDA may levy a $20,000.00 assessment against the Property if: (a) the Property is not improved with a single family house on or before July 21, 2017; and/or (b) if Novak -Fleck sells the Property with the completed home to a non -owner -occupant in violation of paragraph 1(a) above. Further, Novak -Fleck agrees the assessment provided by this paragraph may be certified to Hennepin County as a special assessment and collected with the real estate taxes against the Property in a single installment. 5. Waiver by Novak -Fleck. Novak -Fleck expressly waives objection to any irregularity with regard to any assessment levied against the Property per this Agreement or any 2 claim that the amount thereof levied against the Property is excessive, together with all rights to appeal the assessment in the courts. 6. Additional Remedies. It is further understood that if Novak -Fleck or an Owner - occupant should breach their respective obligations under this Agreement, the EDA will suffer irrevocable harm from which a recovery of money damages would be an inadequate remedy. It is therefore agreed that the EDA shall be entitled, as a matter of right, in any Court of competent jurisdiction to a mandatory injunction restraining and enjoining pending litigation, as well as upon final determination thereof, from attempting to violate or violating this Agreement. It is further agreed that the EDA's rights to such injunctive relief shall be cumulative with and in addition to any other rights, remedies or actions which the EDA may have. 7. Novak -Fleck's Successors. This Agreement shall not be terminated by: a) The voluntary dissolution of Novak -Fleck or any parent subsidiary or successor of Novak -Fleck; b) Merger whereby Novak -Fleck (or such parent subsidiary or successor of Novak - Fleck) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of Novak -Fleck. In the event of any such merger or consolidation or transfer of assets, the provisions of this Agreement shall inure to the benefit of and shall be binding upon the surviving or resulting entity to which such assets shall be transferred. 8. Running of Benefits and Burdens. All provisions of this Agreement, including the benefits and burdens run with the land and are binding upon and shall inure to the benefit of the assigns and successors of the parties to this Agreement, such that the provisions of this Agreement shall restrict the Property, and subdivision thereof, notwithstanding any sale or transfer of the Property or any subdivision thereof to a third party. 9. Notices. Any notice to be given by a party to this Agreement shall be personally delivered, sent by registered or certified mail, sent by confirmed electronic transmission, or sent by a nationally recognized overnight courier that issues a receipt to the address set forth for the other party in this section (or to such other address as may be designated by notice to the other parties), and shall be deemed given upon the earlier of personal delivery, the date postmarked, confirmation of electronic transmission, delivery to such courier or the refusal to accept such service. If to the EDA: EDA in and for the City of New Hope Attn: Kirk McDonald 4401 Xylon Avenue North New Hope, MN 55428 kmcdona1d@cJ.new-hope.mn.us If to Novak -Fleck: Novak -Fleck Incorporated Attn: Richard Novak 8857 Zealand Avenue North Brooklyn Park, MN 55445-1895 10. Governiniz Law. All matters relating to the interpretation, construction, validity and enforcement of this Agreement shall be governed by the internal laws of the State of Minnesota. 11. Cuniulatire Riglits. Each and all of the various rights, power and remedies of the EDA in this Agreement shall be considered as cumulative with and in addition to any other rights, powers, or remedies of EDA, and no one of them is exclusive to the others, or is exclusive to any other rights, powers and remedies allowed by law. The exercise or partial exercise of any right, power or remedy shall neither constitute the election thereof, nor the waiver of any other power or remedy. 12. Amendment. This Agreement may be modified or amended only by a written instrument executed by Novak -Fleck and the EDA. IN AGREEMENT, the parties have executed these Restrictive Covenants effective the day and year first above -written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Kirk McDonald Its: Executive Director Dated: July 21, 2016 4 NOVAK-FLECK INCORPORATED M. Richard Novak Its: President Dated: July 21, 2016 STATE OF MINNESOTA )ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this 21" day of July, 2016, by Kirk McDonald, the Executive Director of the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota. (Notary Public Seal) Notary Public STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this 21" day of July, 2016, by Richard Novak, the President of Novak -Fleck Incorporated, a Minnesota corporation, on behalf of said corporation. (Notary Public Seal) Drafted By: Notary Public JENSEN SONDRALL PERSELLIN & WOODS, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763) 424-8811 P:\Attorney\SAS\1 Client Filcs\2 City of New Hope\99-11381 4511 Boone Ave. N\Restrictive Covenant 4511 Boone - v2.doc 5 Exhibit C Assessment Agreement See attached. 14 ASSESSMENT AGREEMENT THIS AGREEMENT dated as of the 21" day of July, 2016, by and between the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota ("EDA") and Novak -Fleck Incorporated, a Minnesota corporation ("Novak -Fleck"). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between EDA and Novak -Fleck dated effective July 14, 2016 ("Purchase Agreement") Novak -Fleck purchased the real property located at 4511 Boone Avenue North in the City of New Hope from EDA, which property is legally described as Lot 3, Block 3, Holiday Hills, Hennepin County, Minnesota ("Property") with a closing on July 21, 2016; and WHEREAS, Novak -Fleck has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the EDA and Novak -Fleck have agreed Novak -Fleck shall complete the construction of the home as described in the Purchase Agreement within one (1) year of the date of closing on the purchase of the Property; and WHEREAS, the EDA and Novak -Fleck have further agreed the EDA may levy a $20,000.00 assessment against the Property prior to Novak -Fleck's sale of the Property with the completed home if it is not being sold to an owner -occupant. Further, said assessment may be certified to Hennepin County for collection with real estate taxes payable in a single installment. AGREEMENT 1. Completion of Project. Novak -Fleck hereby covenants and agrees with the EDA that the new home on the Property shall be fully completed on or before July 21, 2017. Fully completed shall mean the Property shall be improved with a new single family house. 2. Agreement to Assessment. Novak -Fleck acknowledges and agrees the EDA may levy a $20,000.00 assessment against the Property if: (a) the Property is not improved with a 1 single family house on or before July 21, 2017; and/or (b) if Novak -Fleck sells the Property with the completed home to a non -owner -occupant. Further, Novak -Fleck agrees the assessment provided by this paragraph may be certified to Hennepin County as a special assessment and collected with the real estate taxes against the Property in a single installment. 3. Waiver by NOVAK-FLECK. Novak -Fleck expressly waives objection to any irregularity with regard to any assessment levied against the Property per this Assessment Agreement or any claim that the amount thereof levied against any Lot is excessive, together with all rights to appeal the assessment in the courts. 4. NOVAK-FLECK's Successors. This Agreement shall not be terminated by: a) The voluntary dissolution of Novak -Fleck or any parent subsidiary or successor of Novak -Fleck; b) Merger whereby Novak -Fleck (or such parent subsidiary or successor of Novak - Fleck) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of Novak -Fleck. In the event of any such merger or consolidation or transfer of assets, the provisions of this Agreement shall be binding upon the surviving or resulting entity to which such assets shall be transferred. 5. Notices. Any notice to be given by a party to this Agreement shall be personally delivered, sent by registered or certified mail, sent by confirmed electronic transmission, or sent by a nationally recognized overnight courier that issues a receipt to the address set forth for the other party in this section (or to such other address as may be designated by notice to the other parties), and shall be deemed given upon the earlier of personal delivery, the date postmarked, confirmation of electronic transmission, delivery to such courier or the refusal to accept such service. If to the EDA: City of New Hope Attn: Kirk McDonald 4401 Xylon Avenue North New Hope, MN 55428-4898 kmcdonald@ci.new-hope.mn.us If to NOVAK-FLECK: Novak -Fleck Incorporated Attn: Richard Novak 8857 Zealand Avenue North Brooklyn Park, MN 55445-1895 2 6. Governing Law. All matters relating to the interpretation, construction, validity and enforcement of this Agreement shall be governed by the internal laws of the State of Minnesota. 7. Cumulative, Rijzhts. Each and all of the various rights, power and remedies of the EDA in this Agreement shall be considered as cumulative with and in addition to any other rights, powers, or remedies of the EDA, and no one of them is exclusive to the others, or is exclusive to any other rights, powers and remedies allowed by law. The exercise or partial exercise of any right, power or remedy shall neither constitute the election thereof, nor the waiver of any other power or remedy. 8. Amendniuit. This Agreement may be modified or amended only by a written instrument executed by Novak -Fleck and the EDA. IN AGREEMENT, the parties have executed this Restrictive Covenant effective the day and year first above -written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Kirk McDonald Its: Executive Director NOVAK-FLECK INCORPORATED Its: President Dated: July 21, 2016 Dated: July 21, 2016 3 STATE OF MINNESOTA }ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this 21" day of July, 2016, by Kirk McDonald, the Executive Director of the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota (Notary Public Seal) Notary Public STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this 21 st day of July, 2016, by , the President of Novak -Fleck Incorporated, a Minnesota corporation, on behalf of said corporation. (Notary Public Seal) Drafted By: Notary Public JENSEN SONDRALL PERSELLIN & WOODS, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763) 424-8811 P:\Attomey\SAS\l Client Files\2 City of New Hope\99-11381 4511 Boone Ave. N\Assessment Agreement 4511 Boone - v2.doc 51 Exhibit D Request for Proposal ("RFP") Guidelines See attached. 15 r City of New Hope I4401 Xylon Ave N I New Hope, MN 55428 1 Office: 763-531-5114 1 Fax: 763-531-5136 ci.new-ho e.mn.us The City of New Hope is requesting proposals from builders to purchase the "soon to be" vacant lot located at 4511 Boone Avenue North, for the construction of a new single family home. The lot is being offered as part of the City's Scattered Site Housing Program that focuses on the removal or rehabilitation of distressed properties. The site currently contains a vacant and foreclosed home that will be razed by the City of New Hope. Enclosed, please find the Proposal Form and Guidelines for making a proposal. To receive consideration, proposals must be submitted on a completed Proposal Form and the required attachments and additional information must be included. Incomplete proposals will not be considered. Proposals are due by 4:30 p.m. on April 22nd 2016. If you have questions about the RFP process or the enclosed Guidelines, please contact Aaron Chirpich in the Community Development Department at the City of New Hope, 763-531-5114 or achirpich@ci.new-hope.mn.us Thank you for your interest! Regards, Aaron Chirpich Community Development Specialist General Notes: 1. Only complete proposals will be considered. The City retains absolute discretion in deciding whether to accept any particular proposal. 2. Proposals must be submitted by state -licensed builders who have built at least three houses in Minnesota in the last five years, or have equivalent experience acceptable to the City. The house may be built speculatively or for a specific buyer. 3. The City is interested in proposals that will generate the highest valued home possible. The new house must be an owner -occupied, single family home. Owner occupancy restrictions will be documented in the development agreement and secured with a recorded restrictive covenant. The occupancy requirement shall apply to the first buyer only and shall last for a period of one year. Full details regarding the legal language of this requirement are available upon request. 4. No preferred home style has been determined. However, preference will be given to proposals that include high quality exterior materials and upgraded amenities. 5. Following proposal approval by the City Council, selected builders will be asked to enter into a purchase and development agreement. This agreement will address the sale of the lot and secure all applicable development and performance standards outlined in the proposal guidelines. At the time of this agreement the builder must submit a $2,000 nonrefundable earnest money - deposit. Once the purchase and development agreement have been completed, final approval by resolution will take place at the next regularly scheduled City Council meeting. The closing on the purchase of the lot must take place within 60 days of final City Council approval. 6. Construction of the new house must be completed within one year of closing on the purchase of the lot. 7. The site is currently occupied by a vacant and partially burned home. The City will be responsible for clearing all existing site improvements and debris in preparation of the lot sale. The City will deliver a development ready site. The site topography is conducive for the development of a walk -out style home. As such, the city dos not plan to backfill the entire excavation. Specifications: 1. Utilities a) All utility service lines shall be underground. Utilities may locate necessary facilities such as pedestals or boxes in the street right-of-way or utility and drainage easements. b) Any expenses for connection of the house to private utilities shall be the responsibility of the builder. c) Municipal water will be available into the lot. The demolition contractor will terminate the water line at the property line. The City will remove and replace the existing curb stop and box. d) Municipal sanitary sewer will be available into the lot. The demolition contractor will cap the service stub at the property line. The City will slip -line the existing service from the termination point to the main. e) The water and sewer service termination points will be marked on -site. 2. Building Standards and Design Guidelines a) All site improvements shall comply with the New Hope City Code. b) The house shall have at least three (3) finished bedrooms and two (2) finished bathrooms. c) The house shall have an attached garage that will accommodate a minimum of two vehicles. Three stall garages are preferred. d) The design should emphasize the front door as the focal point for the front of the house. A large and usable front porch is desired. Garage door dominance in design should be min- imized as much as possible, such as by using separate doors for each stall. e) The driveway must be fully paved from the street to the garage. Specifications: e) Plans should present a balanced and pleasing distribution of wall and window areas from all views. Blank walls are not permitted. To the extent that southern exposures are present, house designs are expected to enhance wintertime natural light and passive solar heating. f ) No equipment such as air-conditioning cooling structures or condensers that generate noise shall be located within a side setback, drainage and utility easement. g) Exterior materials (siding, soffit, doors and windows) shall be low maintenance. The use of brick or stucco is preferred. Vinyl or other low maintenance siding materials are generally acceptable and can be made more desirable through the use of shakes, fish scales or other styles to break up the pattern. 3. Landscaping a) The lot shall be landscaped to be aesthetically pleasing in all seasons. Land forms and plant materials shall be used to define the site and blend neatly with adjoining property. The lot area remaining after providing for off-street parking, sidewalks, driveways, buildings, and other requirements shall be landscaped using ornamental grass, shrubs, trees or other accepta- ble vegetation or treatment generally used in landscaping. All lawn areas must be irrigated. b) A minimum of two (2) large -species deciduous shade trees shall be planted in the front yard. A minimum of one (1) large -species deciduous shade tree shall be planted in the rear yard. c) Species, size and specific location of all new trees must be approved by the City Forester. Builder must submit a planting plan to the City Forester for review and approval prior to planting. 4. Setbacks Front Rear Side House Side Attached Garage 30feet 25 feet 10 feet 5 feet Specifications: 5. Builder Selection Criteria a) Builder must a licensed in the State of Minnesota as a Residential Building Contractor. b) Builder shall provide the addresses of three houses they have built in Minnesota within the last five years, or evidence of qualification acceptable to the City. c) Builder must provide proof of builders risk, comprehensive general liability, and worker's compensation coverage. d) Builder must be capable of closing on the lot purchase within two months of the City approved lot sale. Proof of financing may be requested by the City. e) Builder must be capable of completing the house within one year of closing on the purchase of the lot. 6. Required Attachments by Builder a) Site plan showing the layout of the home on the lot. Please include dimensions and setbacks. b) Floor plans with dimensions. Clearly indicate square footages of each floor. c) List overall square footage. d) List total finished square feet. e) Elevations, must indicate types of exterior materials (color elevations preferred). f) Narrative description of the interior trim package. Include description of flooring. g) Estimated sales price of the home. h) Pictures of similar homes (if available). 7. Attachments Provided by City Location Map This lot is being offered at a price of $55,000. The City does not negotiate on lot price. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase this lot for $55,000 and build a new single family house in accordance with the RFP guidelines. If a builders proposal is accepted by the City Council, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the City and the builder. Company N Telephone: Address: State License Number: E-mail City/State/Zip: Signature: Date: Print Name and Proposals are due by 4:30 p.m. on April 22nd 2016 Submit this proposal form and required attachments to: Aaron Chirpich City of New Hope I Community Development Specialist 4401 Xylon Ave N I New Hope, MN 55428 Office: 763-531-5114 1 Fax: 763-531-5136 achirpichaei.new-hooe.mmus Proposals may be submitted by hand delivery, U.S. Mail, Fax or E-mail Exhibit E Buyer's Proposed Plans See attached. P:\Attorney\SAS\I Client Files\2 City of New Hope\99-11381 4511 Boone Ave. N\Purchase and Redevelopment Agreement 4511 Boone.doc 16 comy *Iteffi it A dz NOIa -0l! M aafllnK. IMp71MkJ6 ( DU FWW NAY ror wxs I;OWTLY. the MMft ray W nat A"-MW Y ro"obaw" wwrm. -A" po-* F c*tr AM §rmfrwA"c*" MV ,Hl. 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MOT �11N4Vf1® -IMgNIR r011r dllMl7li10�{ HHLC. 1CATy8R1' d� 1•�WK � IL,I/N ALL DRpl1pIR G1'MYA 27-ET-CV-16-331 Filed in Fourth Judicial District Court 10/6/2016 2:51:19 PM Hennepin County, MN IN PROCEEDINGS SUBSEQUENT TO INITIAL REGISTRATION 27-ET-CV-16-331 STATE OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN In the matter of the Petition of Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota For a New Certificate of Title After Mortgage Foreclosure FOURTH JUDICIAL DISTRICT Case type: Other Civil — Torrens The above -entitled matter came on for hearing on the 6th day of October, 2016, at Room A-702 of the Hennepin County Government Center in the City of Minneapolis, said County and State, before the (Deputy) Examiner of Titles, to whom the matter has been duly referred pursuant to Minn. Stat. § 508.13, to hear the evidence in said cause and report the Examiner's conclusions therefrom, and who has filed a report in the matter; and the Court having duly considered the Petition, the evidence adduced by the Petitioner(s) and the Report or Reports of the Examiner, finds: 1. That on February 3, 2006 the Registrar of Titles entered Certificate of Title No. 1175782 to Adolphus B. Scott. 2. That mortgage Document No. T4222336 was executed after July 1, 1987, that the amount claimed to be due and owing as of the date of the notice of the foreclosure sale was more than two-thirds of the principal amount secured by the mortgage, and that the mortgaged premises are less than 40 acres in size and were not in agricultural use as defined in Minn. Stat., §40A.02, Subd. 3. 3. That the land described in the mortgage is not "agricultural property" as defined in Minn. Stat. §583.22, Subd. 2 which would be subject to the provisions of the farmer -lender mediation act. 4. That more than 6 months have elapsed since the date of the mortgage foreclosure sale, that there has been no redemption therefrom, except by Petitioner, and that the statutory time period allowed for redemption has expired. 5. That no bankruptcy proceedings have been instituted by or against Adolphus B. Scott through the end of the mortgage foreclosure redemption period. 27-ET-CV-16-331 Filed in Fourth Judicial District Court 10/6/2016 2:51:19 PM Hennepin County, MN