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IP #1018 destroy 2029PROJECT NO. 1018 5355 Oregon Ave N (scattered site housing program) - $200,000 EDA Res. 4/9/18 Resolution approving purchase agreement for the acquisition of 5355 Oregon Avenue 2018-04 North (improvement project no. 1018) EDA Res. 9/10/18 Resolution approving contract with Robinson Environmental, Inc. for hazardous material 2018-14 abatement at 5355 Oregon Avenue (Improvement Project No. 1018) EDA Res. 11/13/18 Resolution approving contract with Leadens Excavating, Inc. for demolition of site 2018-20 improvements, tree removal, and site grading of 5355 Oregon Avenue North (improvement project no. 1018) EDA Res. 11/12/19 Resolution approving purchase and redevelopment agreements with Great Buy Homes, 2019-11 Inc. for the sale of both lots contained within the plat of Lammle Addition (Improvement Project No. 1018) PURCHASE AND REDEVELOPMENT AGREEMENT This Purchase and Redevelopment Agreement ("Agreement") is made by and between GREAT BUY HOMES, INC. 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 November Z, 2019. 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 5353 Oregon Avenue North, New Hope, Minnesota, and legally described as "Lot 1, Block 1, Lammle Addition, Hennepin County, Minnesota" (the "Property"). 1. Purchase Price. The purchase price for the Property is Sixty -Five Thousand and No/100 Dollars ($65,000.00) (the "Purchase Price"), which Buyer shall pay as follows: an initial payment of One Thousand and No/100 Dollars ($1,000.00) (the "Earnest Money"), which sum shall be paid to Seller upon Buyer and Seller's execution of this Agreement and Sixty - Four Thousand and No/100 Dollars ($64,000.00) payable by wire, cashier's check or cash on the "Date of Closing", as that term is defined in paragraph 6 below. There are no items of personal property or fixtures included in this sale. 2. Title Conveyed. On the Date of Closing, Seller shall deliver a Quit Claim Deed (the "Deed") to Buyer conveying marketable title of record, free and clear of liens, encumbrances, assessments, and restrictions, except for the "Permitted Encumbrances" set forth on Exhibit A and the restrictive covenants referenced below in paragraph 4.b. 3. Representations of Seller. Seller represents and agrees as follows: a. Seller owns the Property and has the right to sell the same, and that there are no unrecorded contracts, leases, easements or other agreements or claims of any third party affecting the use, title, occupancy or development of the Property, there are no parties other than Seller in possession of any portion of the Property, and no person, firm or entity has any right of refusal, option or other right to acquire all or any part of the Property. b. Seller has not received any notice from any governmental authority concerning any eminent domain, condemnation, special taxing district, or rezoning proceedings. C. To the best of Seller's knowledge without inquiry there are no septic systems or wells on the Property other than the sealed well referenced in the Certificate on the attached Exhibit B. d. Seller represents that it has the requisite power and authority to enter into and perform this Agreement and any Seller's Closing Documents signed by it. e. Seller is not a "foreign person," "foreign partnership," "foreign trust" or "foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code. f. To the best of Seller's knowledge without inquiry, no above ground or underground tanks are located in or about the Property. g. Seller makes no other warranties as to the condition of the Property. Seller agrees that any breach of Seller's foregoing representations shall be grounds for Buyer to terminate this Agreement. In the event of such termination, the Earnest Money shall be returned. Wherever herein a representation is made "to the best of Seller's knowledge," such representation is limited to the actual knowledge of the President and/or Executive Director of Seller. 4. Representations of Buyer. As an essential part of this Agreement and in order to induce Seller to enter into this Agreement and sell the Property, Buyer hereby represents to Seller: a. SUBJECT TO THE FOREGOING REPRESENTATIONS BY SELLER, BUYER HEREBY ACKNOWLEDGES THAT BUYER IS PURCHASING THE PROPERTY IN "AS IS" CONDITION AS TO THE USE OF THE PROPERTY. Buyer understands and agrees that the Purchase Price is the fair market value of the Property in its "AS IS" condition. Buyer acknowledges that they have inspected or have had the opportunity to inspect the Property and agree to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for the purpose of determining if the soil is suitable for construction of the homes described in paragraph 10 below. If the soil is determined to be unacceptable Buyer may rescind this Agreement by written notice to Seller, in which case the Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer. b. Buyer agrees the first sale of the separate homes on the Property will be sold to owner -occupants. An "owner -occupant" shall be defined as an individual(s) that purchases the home from Buyer by warranty deed or a contract for deed and intending to reside in the home as a primary residence. To insure the intent of the parties that the home constructed on the Property is purchased by an owner - occupant, Buyer will record restrictive covenants and assessment agreement against the Property prohibiting the leasing of the home for a period of two (2) years after the sale of such home by Buyer to an owner -occupant of the home. The restrictive covenants and assessment agreement shall be substantially in the form of the documents attached hereto as Exhibits C and D, respectively. Further, the restrictive covenants and assessment agreement shall provide that the EDA may levy a $20,000.00 assessment on the Property prior to the sale if the lot is not being sold to an owner -occupant. The EDA shall release the Property from these restrictive covenants and assessment agreement upon the issuance of a certificate of occupancy for the construction of the home on the Property and upon the receipt by the EDA of an affidavit signed by Buyer and the owner - occupants verifying owner -occupants' intent to reside in the homes as their primary residence in compliance with the restrictive covenants described herein in the form attached as Exhibit C. C. Within one (1) year of Closing, Buyer shall complete the construction of the single family home on the Property (the Improvements). The Improvements must be consistent with all building and zoning requirements and the restrictive covenants applicable to the Property. The representations set forth in this paragraph shall be incorporated into appropriate documents to be recorded against the Property (whether by declaration, restrictive covenants, or development agreement as hereinafter defined) subject to approval by Seller and Buyer as a condition of Closing. 5. Title Commitment and Policy. a. Seller shall deliver to Buyer a Commitment for an ALTA Form B owner's policy of title insurance (the "Commitment") issued by a title insurance company of Buyer's choice ("Title Company") and covering title to the Property, in the amount of the Purchase Price. Buyer agrees to pay the costs associated with the preparation and issuance of the Commitment; Buyer shall pay the premium for the owner's policy, if any, and the lender's policy, if any, along with the price for any endorsements requested by Buyer or Buyer's lender. b. Buyer shall have fifteen (15) days after receipt of the Commitment to review and approve the title to the Property and to object to any exception to title that is disclosed in the Commitment or which is otherwise discovered by Buyer. In the event that Buyer does not within such fifteen (15) day period give notice to Seller objecting to any such exceptions, then all such exceptions shall be deemed approved and shall be considered a part of the Permitted Encumbrances. If Buyer timely objects to an exception to title, then on or before the tenth (10) day following Buyer's notice of exception, Seller shall remove the exception or notify Buyer that Seller is unwilling or unable to remove the exception. Within five (5) days of any notice by Seller that Seller it is unable to remove an exception to title, Buyer may elect by notice to Seller to either: (i) terminate this Agreement, whereupon all of the Earnest Money shall be returned to Buyer and the parties shall be released from all further obligations hereunder except obligations under this Agreement which provide for continued exercise following the cancellation or other termination of this Agreement; or (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. 6. Closing. a. Closing shall occur on or before April 1, 2020 (the "Date of Closing" or "Closing"), unless both parties agree, in writing, to an earlier or later time. b. Closing shall occur at the office of the Title Company. C. Seller shall deliver at closing the following executed and acknowledged documents: (i) the Deed; (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, the Purchase and Redevelopment Agreement, the assessment agreement and restrictive covenants and all customary closing fees charged by the Title Company or other closing agent to both Seller and Buyer, if any, utilized to close the transaction contemplated by this Agreement. General real estate taxes payable in the year of closing shall be prorated by Seller and Buyer as of the closing date based upon a calendar year. Each party shall pay its own attorney's fees. 8. Condemnation. If, prior to the Date of Closing, all or any part of the Property shall be condemned by governmental or other lawful authority, Buyer shall have the option of (a) completing the purchase contemplated by this Agreement, in which event all condemnation proceeds or claims thereof shall be assigned to Buyer, or (b) canceling this Agreement, in which event the Earnest Money shall be refunded and this Agreement shall be terminated with neither party having any rights against or obligations to the other except rights or obligations under this Agreement which provide for continued exercise following closing or cancellation or other termination of this Agreement, and Seller shall be entitled to any and all condemnation proceeds. 9. Construction of Homes. Buyer agrees that it will construct a new single family home on the Property. This covenant shall survive the delivery of the Deed. a. The single family home described in this paragraph is referred to as the "Minimum Improvements." b. The Minimum Improvements shall consist of one new single family home, and shall be constructed substantially in accordance with the RFP Guidelines attached as Exhibit E and the proposal approved by Seller on November 12, 2019 attached as Exhibit F. C. Construction of the Minimum Improvements must be substantially completed within one (1) year following Closing. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of New Hope building inspector. d. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of Buyer to construct such Minimum Improvements (including the date for completion thereof), Seller will furnish Buyer with a Certificate of Completion for such improvements. Such certification by Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the Deed with respect to the obligations of Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof. The certificate provided for in this paragraph of this Agreement shall be in such form as will enable it to be recorded in the Hennepin County Recorder's Office and other instruments pertaining to the Property. If Seller shall refuse or fail to provide any certification in accordance with the provisions of this paragraph, Seller shall, within thirty (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. e. Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (i) Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer"), without the prior written approval of Seller. The term "Transfer" does not include encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable Buyer or any successor in interest to the Property, or any part thereof, to construct the Minimum Improvements or component thereof. (ii) If Buyer seeks to effect a Transfer prior to issuance of the Certificate of Completion, Seller shall be entitled to require as conditions to such Transfer that: (1) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of Seller, necessary and adequate to fulfill the obligations undertaken in this Agreement by Buyer as to the portion of the Property to be transferred; and (2) Any proposed transferee, by instrument in writing satisfactory to Seller and in form recordable in the public land records of Hennepin County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of Seller, have expressly assumed all of the obligations of Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by Seller) deprive Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by Seller to the contrary, no such transfer or approval by Seller thereof shall be deemed to relieve Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto. (3) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subparagraph shall be in a form reasonably satisfactory to Seller. (iii) If the conditions described above are satisfied then the Transfer will be approved and Buyer shall be released from its obligation under this Agreement, as to the portion of the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (iii) apply to all subsequent transferors. (iv) Upon issuance of the Certificate of Completion, Buyer may transfer or assign the Minimum Improvements and/or Buyer's rights and obligations under this Agreement with respect to such Property without the prior written consent of Seller. f. Buyer agrees that (a) it will use the Minimum Improvements as only a single family, owner -occupied homes, (b) it will not seek exemption from real estate taxes on the Property under State law, and (c) it will not transfer or permit transfer of the Property to any entity whose ownership or operation of the property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of New Hope or Seller in accordance with this Agreement). The covenants in this paragraph run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for at least 30 years after the Date of Closing. g. Buyer shall comply with all recommendations of the City Engineer. h. Buyer's construction plans shall be approved by the City Building Official 10. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to Buyer and prior to receipt by Buyer of the Certificate of Completion of the Minimum Improvements, Buyer fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from Seller to Buyer to do so, then Seller shall have the right to re-enter and take possession of the Property and to terminate (and revert in Seller) the estate conveyed by the Deed to Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of Buyer and failure on the part of Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, Seller at its option may declare a termination in favor of Seller of the title, and of all the rights and interests in and to the Property conveyed to Buyer, and that such title and all rights and interests of Buyer, and any assigns or successors in interest to and in the Property, shall revert to Seller, but only if the events stated in this paragraph have not been cured within the time periods provided above. 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 S eller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof, and any amounts otherwise owing Seller by the Buyer and its successor or transferee; and b. Second, to reimburse Buyer for the balance of the Purchase Price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to Buyer upon delivery of executed, recordable warranty deed to the Property by Buyer to Seller. 12. Notices. All notices required hereunder shall be in writing and shall be deemed to have been duly given and received (a) two (2) business days after depositing of the same in the mail if sent by regular, registered or certified mail, postage prepaid, to the party to whom directed, at such 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 for notice purposes by written notice to the other party in the manner aforesaid. The addresses of the parties are as follows: SELLER: Economic Development Authority in and for the City of New Hope Kirk McDonald, Executive Director 4401 Xylon Avenue North New Hope, MN 55428-4898 with copy to: Stacy A. Woods, New Hope Assistant City Attorney Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 BUYER: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 195th Avenue NW Anoka, MN 55303 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 fmders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Seller. 14. Remedies. If Buyer defaults under this Agreement, Seller shall have the right to terminate this Agreement by giving written notice to Buyer as provided by law. If Buyer fails to cure such default as provided by law, this Agreement will terminate, and upon such termination Seller will retain the Earnest Money and neither party shall have any rights or obligations against the other except rights or obligations under this Agreement which provide for continued exercise following the cancellation or other termination of this Agreement. If Seller defaults under this Agreement, Buyer's only remedy shall be to terminate the Agreement and recover the Earnest Money paid to Seller. Buyer shall not have any right to the remedy of specific performance 15. Assignment/Prohibition Against Transfer of Property. Buyer may not assign its rights and obligations hereunder without the prior written consent of Seller, which consent may be granted or withheld by Seller in its sole discretion. 16. Miseellaneous. This Agreement shall be governed by the laws of the State of Minnesota. No amendment of this Agreement shall be valid or binding unless executed by authorized representatives of both Seller and Buyer. The headings and captions of this Agreement are for the convenience of the parties only and shall not be looked to in the interpretation or enforcement of this Agreement. Seller and Buyer acknowledge and agree that each has had opportunity to participate in the drafting of this Agreement and accordingly acknowledge and agree that this Agreement as a whole and each of is clauses are not to be interpreted in favor of or against either party. This Agreement may be signed in counterpart, with each copy of the Agreement binding upon the signing party at the time of signing and together which shall constitute a single document. 17. Survival. The Parties representations contained herein shall survive the delivery of the Deed. IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the above date ("Effective Date"). SELLER: Economic Development Authority in and for the City ofM By:" Kathi e Its: President Dated: November /A , 2019 By 4 0 Kirk McDonald Its: Executive Director Dated: November12 , 2019 STATE OF NIINNESOTA ) ss. COUNTY OF HENNEPIN ) BUYER: GREAT BUY HOMES, INC. By: ' lenn Hammer Its: President Dated: NovembeA- , 2019 The foregoing instrument was acknowledged before me this —/Z day of November, 2019, by Kathi Hemken and Kirk McDonald, the President and Executive Director, respectively, of the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota Notary Public VALERIE J LEONE Notary Public -Minnesota My Commission Expires Jan 31, 2020 lwww����l 10 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this Qjday of November, 2019, by Glenn Hammer, the President of GREAT BUY HOMES, INC., a Minnesota corporation, on behalf of said corporation. a� ELIZABETH A KRAMER = Notary Public State of Minnesota My Commission Expires January 31, 2023 DRAFTED BY: Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, #201 Brooklyn Park, MN 55443 763 424-8811 11 PURCHASE AND REDEVELOPMENT AGREEMENT This Purchase and Redevelopment Agreement ("Agreement") is made by and between GREAT BUY HOMES, INC. 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 November IS .5 2019. 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 5355 Oregon Avenue North, New Hope, Minnesota, and legally described as "Lot 2, Block 1, Lammle Addition, Hennepin County, Minnesota" (the "Property"). 1. Purchase Price. The purchase price for the Property is Sixty -Five Thousand and No/100 Dollars ($65,000.00) (the "Purchase Price"), which Buyer shall pay as follows: an initial payment of One Thousand and No/100 Dollars ($1,000.00) (the "Earnest Money"), which sum shall be paid to Seller upon Buyer and Seller's execution of this Agreement and Sixty - Four Thousand and No/100 Dollars ($64,000.00) payable by wire, cashier's check or cash on the "Date of Closing", as that term is defined in paragraph 6 below. There are no items of personal property or fixtures included in this sale. 2. Title Conveyed. On the Date of Closing, Seller shall deliver a Quit Claim Deed (the "Deed") to Buyer conveying marketable title of record, free and clear of liens, encumbrances, assessments, and restrictions, except for the "Permitted Encumbrances" set forth on Exhibit A and the restrictive covenants referenced below in paragraph 4.b. 3. Representations of Seller. Seller represents and agrees as follows: a. Seller owns the Property and has the right to sell the same, and that there are no unrecorded contracts, leases, easements or other agreements or claims of any third party affecting the use, title, occupancy or development of the Property, there are no parties other than Seller in possession of any portion of the Property, and no person, firm or entity has any right of refusal, option or other right to acquire all or any part of the Property. b. Seller has not received any notice from any governmental authority concerning any eminent domain, condemnation, special taxing district, or rezoning proceedings. C. To the best of Seller's knowledge without inquiry there are no septic systems or wells on the Property other than the sealed well referenced in the Certificate on the attached Exhibit B. d. Seller represents that it has the requisite power and authority to enter into and perform this Agreement and any Seller's Closing Documents signed by it. e. Seller is not a "foreign person," "foreign partnership," "foreign trust" or "foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code. f. To the best of Seller's knowledge without inquiry, no above ground or underground tanks are located in or about the Property. g. Seller makes no other warranties as to the condition of the Property. Seller agrees that any breach of Seller's foregoing representations shall be grounds for Buyer to terminate this Agreement. In the event of such termination, the Earnest Money shall be returned. Wherever herein a representation is made "to the best of Seller's knowledge," such representation is limited to the actual knowledge of the President and/or Executive Director of Seller. 4. Representations of Buyer. As an essential part of this Agreement and in order to induce Seller to enter into this Agreement and sell the Property, Buyer hereby represents to Seller: a. SUBJECT TO THE FOREGOING REPRESENTATIONS BY SELLER, BUYER HEREBY ACKNOWLEDGES THAT BUYER IS PURCHASING THE PROPERTY IN "AS IS" CONDITION AS TO THE USE OF THE PROPERTY. Buyer understands and agrees that the Purchase Price is the fair market value of the Property in its "AS IS" condition. Buyer acknowledges that they have inspected or have had the opportunity to inspect the Property and agree to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for the purpose of determining if the soil is suitable for construction of the homes described in paragraph 10 below. If the soil is determined to be unacceptable Buyer may rescind this Agreement by written notice to Seller, in which case the Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer. b. Buyer agrees the first sale of the separate homes on the Property will be sold to owner -occupants. An "owner -occupant" shall be defined as an individual(s) that purchases the home from Buyer by warranty deed or a contract for deed and intending to reside in the home as a primary residence. To insure the intent of the parties that the home constructed on the Property is purchased by an owner - occupant, Buyer will record restrictive covenants and assessment agreement against the Property prohibiting the leasing of the home for a period of two (2) years after the sale of such home by Buyer to an owner -occupant of the home. The restrictive covenants and assessment agreement shall be substantially in the form of the documents attached hereto as Exhibits C and D, respectively. Further, the restrictive covenants and assessment agreement shall provide that the EDA may levy a $20,000.00 assessment on the Property prior to the sale if the lot is not being sold to an owner -occupant. The EDA shall release the Property from these restrictive covenants and assessment agreement upon the issuance of a certificate of occupancy for the construction of the home on the Property and upon the receipt by the EDA of an affidavit signed by Buyer and the owner - occupants verifying owner -occupants' intent to reside in the homes as their primary residence in compliance with the restrictive covenants described herein in the form attached as Exhibit C. C. Within one (1) year of Closing, Buyer shall complete the construction of the single family home on the Property (the Improvements). The Improvements must be consistent with all building and zoning requirements and the restrictive covenants applicable to the Property. The representations set forth in this paragraph shall be incorporated into appropriate documents to be recorded against the Property (whether by declaration, restrictive covenants, or development agreement as hereinafter defined) subject to approval by Seller and Buyer as a condition of Closing. 5. Title Commitment and Policy. a. Seller shall deliver to Buyer a Commitment for an ALTA Form B owner's policy of title insurance (the "Commitment") issued by a title insurance company of Buyer's choice ("Title Company") and covering title to the Property, in the amount of the Purchase Price. Buyer agrees to pay the costs associated with the preparation and issuance of the Commitment; Buyer shall pay the premium for the owner's policy, if any, and the lender's policy, if any, along with the price for any endorsements requested by Buyer or Buyer's lender. b. Buyer shall have fifteen (15) days after receipt of the Commitment to review and approve the title to the Property and to object to any exception to title that is disclosed in the Commitment or which is otherwise discovered by Buyer. In the event that Buyer does not within such fifteen (15) day period give notice to Seller objecting to any such exceptions, then all such exceptions shall be deemed approved and shall be considered a part of the Permitted Encumbrances. If Buyer timely objects to an exception to title, then on or before the tenth (10) day following Buyer's notice of exception, Seller shall remove the exception or notify Buyer that Seller is unwilling or unable to remove the exception. Within five (5) days of any notice by Seller that Seller it is unable to remove an exception to title, Buyer may elect by notice to Seller to either: (i) terminate this Agreement, whereupon all of the Earnest Money shall be returned to Buyer and the parties shall be released from all further obligations hereunder except obligations under this Agreement which provide for continued exercise following the cancellation or other termination of this Agreement; or (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. 3 6. Closing. a. Closing shall occur on or before April 1, 2020 (the "Date of Closing" or "Closing"), unless both parties agree, in writing, to an earlier or later time. b. Closing shall occur at the office of the Title Company. C. Seller shall deliver at closing the following executed and acknowledged documents: (i) the Deed; (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, the Purchase and Redevelopment Agreement, the assessment agreement and restrictive covenants and all customary closing fees charged by the Title Company or other closing agent to both Seller and Buyer, if any, utilized to close the transaction contemplated by this Agreement. General real estate taxes payable in the year of closing shall be prorated by Seller and Buyer as of the closing date based upon a calendar year. Each party shall pay its own attorney's fees. 8. Condemnation. If, prior to the Date of Closing, all or any part of the Property shall be condemned by governmental or other lawful authority, Buyer shall have the option of (a) completing the purchase contemplated by this Agreement, in which event all condemnation proceeds or claims thereof shall be assigned to Buyer, or (b) canceling this Agreement, in which event the Earnest Money shall be refunded and this Agreement shall be terminated with neither party having any rights against or obligations to the other except rights or obligations under this Agreement which provide for continued exercise following closing or cancellation or other termination of this Agreement, and Seller shall be entitled to any and all condemnation proceeds. 9. Construction of Homes. Buyer agrees that it will construct a new single family home on the Property. This covenant shall survive the delivery of the Deed. a. The single family home described in this paragraph is referred to as the "Minimum Improvements." b. The Minimum Improvements shall consist of one new single family home, and shall be constructed substantially in accordance with the RFP Guidelines attached as Exhibit E and the proposal approved by Seller on November 12, 2019 attached as Exhibit F. C. Construction of the Minimum Improvements must be substantially completed within one (1) year following Closing. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of New Hope building inspector. d. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of Buyer to construct such Minimum Improvements (including the date for completion thereof), Seller will furnish Buyer with a Certificate of Completion for such improvements. Such certification by Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the Deed with respect to the obligations of Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof. The certificate provided for in this paragraph of this Agreement shall be in such form as will enable it to be recorded in the Hennepin County Recorder's Office and other instruments pertaining to the Property. If Seller shall refuse or fail to provide any certification in accordance with the provisions of this paragraph, Seller shall, within thirty (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. e. Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (i) Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer"), without the prior written approval of Seller. The term "Transfer" does not include encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable Buyer or any successor in interest to the Property, or any part thereof, to construct the Minimum Improvements or component thereof. (ii) If Buyer seeks to effect a Transfer prior to issuance of the Certificate of Completion, Seller shall be entitled to require as conditions to such Transfer that: (1) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of Seller, necessary and adequate to fulfill the obligations undertaken in this Agreement by Buyer as to the portion of the Property to be transferred; and (2) Any proposed transferee, by instrument in writing satisfactory to Seller and in form recordable in the public land records of Hennepin County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of Seller, have expressly assumed all of the obligations of Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which Buyer is subj ect as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by Seller) deprive Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by Seller to the contrary, no such transfer or approval by Seller thereof shall be deemed to relieve Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto. (3) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subparagraph shall be in a form reasonably satisfactory to Seller. (iii) If the conditions described above are satisfied then the Transfer will be approved and Buyer shall be released from its obligation under this Agreement, as to the portion of the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (iii) apply to all subsequent transferors. (iv) Upon issuance of the Certificate of Completion, Buyer may transfer or assign the Minimum Improvements and/or Buyer's rights and obligations under this Agreement with respect to such Property without the prior written consent of Seller. f. Buyer agrees that (a) it will use the Minimum Improvements as only a single family, owner -occupied homes, (b) it will not seek exemption from real estate taxes on the Property under State law, and (c) it will not transfer or permit transfer of the Property to any entity whose ownership or operation of the property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of New Hope or Seller in accordance with this Agreement). The covenants in this paragraph run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for at least 30 years after the Date of Closing. g. Buyer shall comply with all recommendations of the City Engineer. h. Buyer's construction plans shall be approved by the City Building Official 10. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to Buyer and prior to receipt by Buyer of the Certificate of Completion of the Minimum Improvements, Buyer fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from Seller to Buyer to do so, then Seller shall have the right to re-enter and take possession of the Property and to terminate (and revert in Seller) the estate conveyed by the Deed to Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of Buyer and failure on the part of Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, Seller at its option may declare a termination in favor of Seller of the title, and of all the rights and interests in and to the Property conveyed to Buyer, and that such title and all rights and interests of Buyer, and any assigns or successors in interest to and in the Property, shall revert to Seller, but only if the events stated in this paragraph have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this paragraph, Seller shall have no right to reenter or retake title to and possession of a portion of the Property for which a Certificate of Completion has been issued. 11. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in Seller of title to and/or possession of the Property or any part thereof as provided in paragraph 10, Seller shall apply the Purchase Price paid by Buyer under paragraph 1 of this Agreement as follows: a. First, to reimburse Seller for all costs and expenses incurred by Seller, including but not limited to proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by Seller from the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of ownership thereof by Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by Seller assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof, and any amounts otherwise owing Seller by the Buyer and its successor or transferee; and b. Second, to reimburse Buyer for the balance of the Purchase Price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to Buyer upon delivery of executed, recordable warranty deed to the Property by Buyer to Seller. 12. Notices. All notices required hereunder shall be in writing and shall be deemed to have been duly given and received (a) two (2) business days after depositing of the same in the mail if sent by regular, registered or certified mail, postage prepaid, to the party to whom directed, at such party's address herein set forth; or (b) upon delivery, or attempted delivery if delivered by overnight courier service or hand delivery. Any party shall have the right to designate any other address for notice purposes by written notice to the other party in the manner aforesaid. The addresses of the parties are as follows: SELLER: Economic Development Authority in and for the City of New Hope Kirk McDonald, Executive Director 4401 Xylon Avenue North New Hope, MN 55428-4898 with copy to: Stacy A. Woods, New Hope Assistant City Attorney Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 BUYER: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 195th Avenue NW Anoka, MN 55303 13. No Broker Involved. Seller and Buyer represent and warrant to each other that there is no broker involved in this transaction with whom it has negotiated or to whom it has agreed to pay a broker commission. Buyer agrees to indemnify Seller for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Seller. 14. Remedies. If Buyer defaults under this Agreement, Seller shall have the right to terminate this Agreement by giving written notice to Buyer as provided by law. If Buyer fails to cure such default as provided by law, this Agreement will terminate, and upon such termination Seller will retain the Earnest Money and neither party shall have any rights or obligations against the other except rights or obligations under this Agreement which provide for continued exercise following the cancellation or other termination of this Agreement. If Seller defaults under this Agreement, Buyer's only remedy shall be to terminate the Agreement and recover the Earnest Money paid to Seller. Buyer shall not have any right to the remedy of specific performance 15. Assignment/Prohibition Against Transfer of Property. Buyer may not assign its rights and obligations hereunder without the prior written consent of Seller, which consent may be granted or withheld by Seller in its sole discretion. 16. Miscellaneous. This Agreement shall be governed by the laws of the State of Minnesota. No amendment of this Agreement shall be valid or binding unless executed by authorized representatives of both Seller and Buyer. The headings and captions of this Agreement are for the convenience of the parties only and shall not be looked to in the interpretation or enforcement of this Agreement. Seller and Buyer acknowledge and agree that each has had opportunity to participate in the drafting of this Agreement and accordingly acknowledge and agree that this Agreement as a whole and each of is clauses are not to be interpreted in favor of or against either party. This Agreement may be signed in counterpart, with each copy of the Agreement binding upon the signing party at the time of signing and together which shall constitute a single document. 17. Survival. The Parties representations contained herein shall survive the delivery of the Deed. IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the above date ("Effective Date"). SELLER: Economic Development Authority in and for the City of N Hope By: Kathi abogn Its: President Dated: November, 2019 ` r � By: �- Kirk McDonald Its: Executive Director Dated: November (- , 2019 STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) BUYER: GREAT BUY HOMES INC. By: lenn Hammer Its: President Dated: NovembeO , 2019 The foregoing instrument was acknowledged before me this /1� day of November, 2019, by Kathi Hemken and Kirk McDonald, the President and Executive Director, respectively, of the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesa Notary Public VALERIE J LEONE Notary Public -Minnesota My Commission Expires Jan 31, 2020 10 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me thisQ5 day of November, 2019, by Glenn Hammer, the President of GREAT BUY HOMES, INC., a Minnesota corporation, on behalf of said corporation. Pi "14� 0- - V14 ov�� ELIZABETH A KRAMER Nota P blic Notary Public State of Minnesota My Commission Expires January31, 2023 DRAFTED BY: Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, #201 Brooklyn Park, MN 55443 (763)424-8811 11 Request for Action November 12, 2019 Approved by: Kirk McDonald, City Manager Originating Department: Community Development By: Jeff Alger, Community Development Specialist; Jeff Sargent, Director of Community Development Agenda Section EDA Item Number 4 Agenda Title Resolution approving purchase and redevelopment agreements with Great Buy Homes, Inc. for the sale of both lots contained within the plat of Lammle Addition (improvement project no. 1018) Requested Action Staff requests that the Economic Development Authority conduct a public hearing and approve a resolution approving the sale of the scattered site lots located at 5353 and 5355 Oregon Avenue North to Great Buy Homes. Policy/Past Practice The Economic Development Authority reviews proposals for the redevelopment of EDA-owned scattered site properties prior to executing a contract with the preferred buyeribuilder. Background The city acquired the distressed property at 5355 Oregon Avenue North in April of 2018. The City Council approved a lot area variance and the vacation of existing easements and rights -of -way to allow the lot to be split and re -platted as two buildable lots in August of 2018. West Metro Fire completed training exercises at the house and the site was cleared in November of 2018. Throughout 2019, city staff and Stantec have coordinated the relocation and burial of existing overhead utility lines at the property as well as the installation of sewer and water connections. A Request for Proposals (RFP) marketing the two lots was sent to more than 20 builders on September 18, 2019. The non-negotiable minimum lot sale price was set at $60,000 per lot ($120,000 total) and builders were allowed the opportunity to submit a higher offer in order to make their proposal more competitive. The RFP stipulated that the proposed houses must be owner -occupied, single-family homes. The occupancy requirement applies to the first buyer for period of two years. The RFP also stated that designs with attached three -stall garages were preferred. Proposals were due on October 9, 2019. The EDA received four proposals from the following builders: • Great Buy Homes (preferred) • Houston Homes, Inc. • My Home Source (Alatus) • Novak -Fleck, Inc. Staff reviewed the proposals with the city manager and selected the submittal from Great Buy Homes as the "preferred" proposal. The proposal included the highest lot purchase price, at $65,000 per lot, the most finished square footage, the most bedrooms, three -stall garages for both homes, and competitive sale prices. The proposed homes feature split-level designs with three bathrooms. The homes have a high level of curb appeal with fagades that include cultured stone, board and batten siding, and upgrades to the garage doors and front doors. The two homes feature slightly different interior and exterior designs with both garages abutting the center property line between the lots. I:\RFA\COMM DEV\2019\EDA\Scattered Site Housing\Q- 5355 Oregon Ave N Lot Sale 11-12-19.docx Request for Action, Page 2 The base characteristics and attributes of each proposal are summarized as follows: Great Buy Homes Houston Homes My Home Source Novak -Fleck (Preferred) (Alatus) Lot purchase price $130,000 total $120,000 total $120,000 total $126,000 total ($65,000 per lot) ($60,000 per lot) ($60,000 per lot) ($63,000 per lot) Projected sale price $350,000 Higher $300,OOOs $399,900 $304,870 per house per house per house per house Front Yard Ore on Avenue North Oregon Avenue North Oregon Avenue North Oregon Avenue North Design Split-level 2-story 2-story 2-story Finished Space 2,327 SF north lot 1,885 SF both lots 2,249 SF north lot 1,929 SF both lots • 1,282 on upper • 770 on main • 919 on main • 766 on main • 1,045 in lower • 1,115 on upper • 1,330 on upper • 630 on upper 2,191 SF south lot 3,770 SF total 2,265 SF south lot • 533 in basement • 1,279 on upper 638 on main 3,858 SF total • 912 in lower 1,179 on upper 4,518 SF total ■ 448 in basement 4,514 SF total Bedrooms 5 both lots 3 both lots 3 north lot 4 both lots (3 on upper level, (all on upper level) (all on upper level) (3 on upper level, 2 in lower level) 4 south lot 1 in basement) (all on upper level Bathrooms 3 both lots 3 both lots 3 north lot 3 both lots (all full) (1 full; 1 3/4; 1 1/2) (1 full; 1 3/4;1 1/2) (1 full; 2 3/4) 4 south lot (2 full; 1 3/4; 1 1/2) Garage 3-stall both lots 2-stall north lot 2-stall both lots 3-stall both lots 3-stall south lot Fagade • Cultured stone • Covered front porch • Covered front porch • Stone pillars & around lower half of ■ Cultured stone • Cultured stone cultured stone garage & front of around lower half of around lower half of around lower half of house garage doors garage doors garage doors ■ Board/batten siding ■ Board/batten siding • Stone pillars on • Vinyl shakes ■ Garage door • Garage door north lot • Accent boards around windows windows • Boardibatten siding windows & doors Other ■ Granite in kitchen • Gas fireplace • Stone countertops ■ Cultured marble • Engineered wood • Maple cabinets • Stainless steel vanity tops in floors in kitchen & • Granite/quartz appliances & sinks bathrooms dining room countertops • TV room in upper • Granite or quartz in • Bathroom connected • Stainless steel level of north lot kitchen to bedroom in lower appliances • Stainless steel level • Upgraded hard appliances ■ Walk-in closet in surface & carpeted • Vinyl plank flooring lower level bedroom floors in kitchen/dinning/ in north lot bathrooms Notes Slightly different Identical interior Garage on north lot Mirrored design for designs; garage abuts designs for both abuts interior lot line both homes; only lot line between both homes; garage on & garage on south lot bathroom upstairs is parcels for both homes north lot abuts interior abuts south lot line master; garage abuts lot line & garage on lot line between both south lot abuts south parcels for both homes lot line Request for Action, Page 3 Experience with Recommended Builder Great Buy Homes is a mid -sized custom home builder based out of Anoka. The city has sold four lots to Great Buy Homes over the past three years. Each of the homes has sold for higher than the projected sale price. Addresses for those homes, sale price, and year of sale are as follows: • 5400 Yukon Ave N: $297,000 (2017) • 6065 Louisiana Ave N: $325,000 (2018) • 6067 Louisiana Ave N: $323,900 (2018) • 7215 62nd Ave N: $350,821 (2019) Cost & Tax Impact of Improvements It is anticipated that expenses associated with the project will be approximately $259,544.55. Revenue from the sale of the lots will be $130,000, resulting in an estimated loss of $129,554.55. The proposed improvements would result in a substantial increase in the taxable value of the property. If the lots were to be valued at $350,000 each in 2020, approximately $529,000 in market value would be added to the property upon completion. Such a valuation would result in an estimated increase of $3,592.29, or 361.53%, in taxes payable to the city in 2021, as compared to those that were payable for the single lot in 2019. 5355 Oregon Ave N (I lot) 5353 & 5355 Oregon Ave N (2 lots) Estimated Market Value 2018, Payable 2019 Projected Estimated Market Value 2020, Payable 2021 Change % Change $171,000 $700,000 $529,000 309.36% Taxable Market Value 2018, Payable 2019 Projected Taxable Value 2020, Payable 2021 Change % Change $149,150 $688,520 $539,370 361.63% Taxes Payable 2018, Pa able 2019 Projected Taxes Payable 2020, Payable 2021 Change % Change $2,674.04 $12,140.44 $9,466 354.01% Taxes Allocated to City 2018, Payable 2019 Projected Taxes Allocated to City 2020, Payable 2021 Change % Change $993.63 $4,585.92 $3,592 361.53% The following table illustrates the Return On Investment (ROI) and tax benefit associated with the estimated increase in taxable property value over the next several years: # of Years (Year) Additional Taxes Collected By City Total Cost/Revenue Return On Investment 0 resent $0 $(129,554.55) -49.91% 1 2021 $3,592.29 $(125,962.26) -48.53% 2(2022) $7,184.58 $(122,369.97) -47.15% 3 2023) $10,776.87 $ 118,777.68 -45.76% 4 2024 $14,369.16 $(115,185.39) -44.38% Request for Action, Page 4 # of Years (Year) Additional Taxes Collected By City Total Cost/Revenue Return On Investment 5 2025) $17,961.45 $(111,593.10) -42.99% 10 2030 $35,922.90 $(93,631.65) -36.07% 15 2035 $53,884.35 $(75,670.20) -29.15% 20 (2040) $71,845.80 $(57,708.75) -22.23% 25 2045 $89,807.25 $(39,747.30) -15.31% 30 2050 $107,768.70 1(21,785.85) -8.39% 37 (2062) $132,914.73 $3,360.18 1.29% The estimated ROI for the project over 30 years is-8.39%. The city's initial investment of $129,554.55 into the project would result in additional taxes being allocated to the city from the subject property. Estimated at $3,592.29 per year, newly collected property taxes would result in a 37-year payback period for the city's original investment (assuming other substantial improvements are not made to the property). The Internal Rate of Return for the project over 30 years is -1.15% (calculation attached). The primary focus of the scattered site program is to target distressed single-family properties throughout the city, with the goal of improving residential neighborhoods. It is understood that potential losses are incurred on each project, as the cost to acquire and redevelop distressed properties often exceeds the value of the new or rehabilitated home. Development Agreement and Next Steps Staff worked with the assistant city attorney to draft a resolution and Purchase and Redevelopment Agreement for the sale of the lots. The agreement ensures that the provisions set forth in the RFP will be met and sets the purchase price of both lots at $130,000. The agreement included in the attachments is considered complete by staff and the city attorney; however, some minor revisions may be necessary once fully reviewed by the buyer. Any substantial changes to the agreement would be presented to the EDA for approval. Although the RFP stipulates that closing must occur within 60 days of approval of the sale, the developer has requested that it take place in April of 2020 due to the changing seasons. Staff is comfortable with this timeframe and anticipates construction of both homes commencing in the spring of 2020. Both homes would need to be completed within a year of the closing date. Funding Funding for this project would come from the EDA budget. Recommendation Staff recommends that the EDA conduct a public hearing and approve a resolution approving the sale of the scattered site lots located at 5353 and 5355 Oregon Avenue North to Great Buy Homes. Attachments • Resolution • Purchase and Redevelopment Agreements with RFP and proposed plans • Other proposals • Budget • Estimated Tax Impact of Improvements • Estimated Return on Investment +. Estimated Internal Rate of Return CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 19-11 RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENTS WITH GREAT BUY HOMES, INC. FOR THE SALE OF 5353 AND 5355 OREGON AVENUE NORTH (IMPROVEMENT PROJECT NO. 1018) BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope ("EDA") as follows: WHEREAS, the EDA purchased that certain real property located at 5355 Oregon Avenue North, New Hope, MN, and legally described as "Lot 1, Block 2, Sunset Heights, Hennepin County, Minnesota (the "Property") as evidenced by the Limited Warranty Deed recorded with the Hennepin County Recorder's Office on April 26, 2018 as Document no. A10548194; WHEREAS, the EDA purchased the Property with the intention of razing the existing house and all site improvements in preparation of re -platting the Property into two separate lots for the sale to a builder to construct two new single family homes; and WHEREAS, the EDA re -platted the Property into 2 separate lots, with the respective addresses: 5353 Oregon Ave. N. — Lot 1, Block 1, Lammle Addition, Hennepin County, Minnesota ("Lot I"); and 5355 Oregon Ave. N. — Lot 2, Block 1, Lammle Addition, Hennepin County, Minnesota ("Lot 2") WHEREAS, in response to a Request for Proposal ("REP") sent by New Hope City staff to various builders, the EDA received an offer from GREAT BUY HOMES, INC., a Minnesota corporation ("GREAT BUY") regarding the sale and redevelopment of the Property; and WHEREAS, the EDA arrived at an agreement with GREAT BUY to sell the Property for the purchase price of $130,000.00, or $65,000 per lot upon all of the terms set forth in the RFP; and WHEREAS, the EDA has accepted GREAT BUY's offer and has presented a draft of two separate Purchase and Redevelopment Agreements for Lot 1 and Lot 2 to GREAT BUY for its review, copies of which are attached hereto as Exhibit A ("Purchase and Redevelopment Agreements") and incorporated herein by reference; and WHEREAS, it is in the best interest of the EDA to sell the Property to GREAT BUY for the sum of $130,000.00, in order for GREAT BUY to redevelop and build two stand alone single family homes on Lot 1 and Lot 2 respectively in accordance with the City's scattered site housing program and policy; and WHEREAS, the City staff is hereby seeking approval from the EDA of the Purchase and Redevelopment Agreement, subject to other terms relating to the closing on the sale of the Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. That the sale of the Property by the EDA to GREAT BUY HOMES, INC., for the purchase price of $130,000.00 (or $65,000 per lot), with other terms and conditions as set forth in the Purchase and Redevelopment Agreements attached hereto as Exhibit A, is approved subject to the review and approval by the City Attorney of the final language and exhibits to the Purchase and Redevelopment Agreements relating to the closing on the sale of the Property, it being in the best interest of the EDA to sell the Property for redevelopment and construction of two single-family homes in accordance with the City's scattered site housing program and policy. 3. The EDA shall use due diligence for selling the Property to GREAT BUY HOMES, INC., for the construction of two single-family homes, so as to return the Property to the tax rolls for the benefit of all taxing jurisdictions. 4. The President, Executive Director and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the sale of the Property in accordance with the Purchase and Redevelopment Agreement. Dated the 12th day of November 2019. Attest:AI, JA �+( Kirk McDonald, Executive Director Kathi He , P esi ent Exhibit A Purchase and Redevelopment Agreements See attached. P:\Attomey\SAS\1 Client Files\2 City of New Hope\99-21804 Variance for 5355 Oregon Ave N\Resolution Approving Sale of 5353 and 5355 Oregon Ave N.docx PURCHASE AND REDEVELOPMENT AGREEMENT This Purchase and Redevelopment Agreement ("Agreement") is made by and between GREAT BUY HOMES, INC. 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 November 2019. 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 5353 Oregon Avenue North, New Hope, Minnesota, and legally described as "Lot 1, Block 1, Lammle Addition, Hennepin County, Minnesota" (the "Property"). 1. Purchase Price. The purchase price for the Property is Sixty -Five Thousand and No/100 Dollars ($65,000.00) (the "Purchase Price"), which Buyer shall pay as follows: an initial payment of One Thousand and No/l00 Dollars ($1,000.00) (the "Earnest Money"), which sum shall be paid to Seller upon Buyer and Seller's execution of this Agreement and Sixty - Four Thousand and No/100 Dollars ($64,000.00) payable by wire, cashier's check or cash on the "Date of Closing", as that term is defined in paragraph 6 below. There are no items of personal property or fixtures included in this sale. 2. Title Conveyed. On the Date of Closing, Seller shall deliver a Quit Claim Deed (the "Deed") to Buyer conveying marketable title of record, free and clear of liens, encumbrances, assessments, and restrictions, except for the "Permitted Encumbrances" set forth on Exhibit A and the restrictive covenants referenced below in paragraph 4.b. 3. Representations of Seller. Seller represents and agrees as follows: a. Seller owns the Property and has the right to sell the same, and that there are no unrecorded contracts, leases, easements or other agreements or claims of any third party affecting the use, title, occupancy or development of the Property, there are no parties other than Seller in possession of any portion of the Property, and no person, firm or entity has any right of refusal, option or other right to acquire all or any part of the Property. b. Seller has not received any notice from any governmental authority concerning any eminent domain, condemnation, special taxing district, or rezoning proceedings. C. To the best of Seller's knowledge without inquiry there are no septic systems or wells on the Property other than the sealed well referenced in the Certificate on the attached Exhibit B. d. Seller represents that it has the requisite power and authority to enter into and perform this Agreement and any Seller's Closing Documents signed by it. e. Seller is not a "foreign person," "foreign partnership," "foreign trust" or "foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code. f. To the best of Seller's knowledge without inquiry, no above ground or underground tanks are located in or about the Property. g. Seller makes no other warranties as to the condition of the Property. Seller agrees that any breach of Seller's foregoing representations shall be grounds for Buyer to terminate this Agreement. In the event of such termination, the Earnest Money shall be returned. Wherever herein a representation is made "to the best of Seller's knowledge," such representation is limited to the actual knowledge of the President and/or Executive Director of Seller. 4. Representations of Buyer. As an essential part of this Agreement and in order to induce Seller to enter into this Agreement and sell the Property, Buyer hereby represents to Seller: a. SUBJECT TO THE FOREGOING REPRESENTATIONS BY SELLER, BUYER HEREBY ACKNOWLEDGES THAT BUYER IS PURCHASING THE PROPERTY IN "AS IS" CONDITION AS TO THE USE OF THE PROPERTY. Buyer understands and agrees that the Purchase Price is the fair market value of the Property in its "AS IS" condition. Buyer acknowledges that they have inspected or have had the opportunity to inspect the Property and agree to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for the purpose of determining if the soil is suitable for construction of the homes described in paragraph 10 below. If the soil is determined to be unacceptable Buyer may rescind this Agreement by written notice to Seller, in which case the Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer. b. Buyer agrees the first sale of the separate homes on the Property will be sold to owner -occupants. An "owner -occupant" shall be defined as an individual(s) that purchases the home from Buyer by warranty deed or a contract for deed and intending to reside in the home as a primary residence. To insure the intent of the parties that the home constructed on the Property is purchased by an owner - occupant, Buyer will record restrictive covenants and assessment agreement against the Property prohibiting the leasing of the home for a period of two (2) years after the sale of such home by Buyer to an owner -occupant of the home. The restrictive covenants and assessment agreement shall be substantially in the form of the documents attached hereto as Exhibits C and D, respectively. Further, the restrictive covenants and assessment agreement shall provide that the EDA may levy a $20,000.00 assessment on the Property prior to the sale if the lot is not being sold to an owner -occupant. The EDA shall release the Property from these restrictive covenants and assessment agreement upon the issuance of a certificate of occupancy for the construction of the home on the Property and upon the receipt by the EDA of an affidavit signed by Buyer and the owner - occupants verifying owner -occupants' intent to reside in the homes as their primary residence in compliance with the restrictive covenants described herein in the form attached as Exhibit C. C. Within one (1) year of Closing, Buyer shall complete the construction of the single family home on the Property (the Improvements). The Improvements must be consistent with all building and zoning requirements and the restrictive covenants applicable to the Property. The representations set forth in this paragraph shall be incorporated into appropriate documents to be recorded against the Property (whether by declaration, restrictive covenants, or development agreement as hereinafter defined) subject to approval by Seller and Buyer as a condition of Closing. 5. Title Commitment and Policy. a. Seller shall deliver to Buyer a Commitment for an ALTA Form B owner's policy of title insurance (the "Commitment") issued by a title insurance company of Buyer's choice ("Title Company") and covering title to the Property, in the amount of the Purchase Price. Buyer agrees to pay the costs associated with the preparation and issuance of the Commitment; Buyer shall pay the premium for the owner's policy, if any, and the lender's policy, if any, along with the price for any endorsements requested by Buyer or Buyer's lender. b. Buyer shall have fifteen (15) days after receipt of the Commitment to review and approve the title to the Property and to object to any exception to title that is disclosed in the Commitment or which is otherwise discovered by Buyer. In the event that Buyer does not within such fifteen (15) day period give notice to Seller objecting to any such exceptions, then all such exceptions shall be deemed approved and shall be considered a part of the Permitted Encumbrances. If Buyer timely objects to an exception to title, then on or before the tenth (10) day following Buyer's notice of exception, Seller shall remove the exception or notify Buyer that Seller is unwilling or unable to remove the exception. Within five (5) days of any notice by Seller that Seller it is unable to remove an exception to title, Buyer may elect by notice to Seller to either: (i) terminate this Agreement, whereupon all of the Earnest Money shall be returned to Buyer and the parties shall be released from all further obligations hereunder except obligations under this Agreement which provide for continued exercise following the cancellation or other termination of this Agreement; or (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. 3 6. Closing. a. Closing shall occur on or before April I; 2020 (the "Date of Closing" or "Closing"), unless both parties agree, in writing, to an earlier or later time. b. Closing shall occur at the office of the Title Company. C. Seller shall deliver at closing the following executed and acknowledged documents: (i) the Deed; (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, the Purchase and Redevelopment Agreement, the assessment agreement and restrictive covenants and all customary closing fees charged by the Title Company or other closing agent to both Seller and Buyer, if any, utilized to close the transaction contemplated by this Agreement. General real estate taxes payable in the year of closing shall be prorated by Seller and Buyer as of the closing date based upon a calendar year. Each party shall pay its own attorney's fees. 8. Condemnation. If, prior to the Date of Closing, all or any part of the Property shall be condemned by governmental or other lawful authority, Buyer shall have the option of (a) completing the purchase contemplated by this Agreement, in which event all condemnation proceeds or claims thereof shall be assigned to Buyer, or (b) canceling this Agreement, in which event the Earnest Money shall be refunded and this Agreement shall be terminated with neither party having any rights against or obligations to the other except rights or obligations under this Agreement which provide for continued exercise following closing or cancellation or other termination of this Agreement, and Seller shall be entitled to any and all condemnation proceeds. 9. Construction of Homes. Buyer agrees that it will construct a new single family home on the Property. This covenant shall survive the delivery of the Deed. a. The single family home described in this paragraph is referred to as the "Minimum Improvements." b. The Minimum Improvements shall consist of one new single family home, and shall be constructed substantially in accordance with the RFP Guidelines attached as Exhibit E and the proposal approved by Seller on November 12, 2019 attached as Exhibit F. C. Construction of the Minimum Improvements must be substantially completed within one (1) year following Closing. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of New Hope building inspector. d. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of Buyer to construct such Minimum Improvements (including the date for completion thereof), Seller will furnish Buyer with a Certificate of Completion for such improvements. Such certification by Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the Deed with respect to the obligations of Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof. The certificate provided for in this paragraph of this Agreement shall be in such form as will enable it to be recorded in the Hennepin County Recorder's Office and other instruments pertaining to the Property. If Seller shall refuse or fail to provide any certification in accordance with the provisions of this paragraph, Seller shall, within thirty (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. e. Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (i) Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer"), without the prior written approval of Seller. The term "Transfer" does not include encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable Buyer or any successor in interest to the Property, or any part thereof, to construct the Minimum Improvements or component thereof. (ii) If Buyer seeks to effect a Transfer prior to issuance of the Certificate of Completion, Seller shall be entitled to require as conditions to such Transfer that: (1) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of Seller, necessary and adequate to fulfill the obligations undertaken in this Agreement by Buyer as to the portion of the Property to be transferred; and (2) Any proposed transferee, by instrument in writing satisfactory to Seller and in form recordable in the public land records of Hennepin County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of Seller, have expressly assumed all of the obligations of Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by Seller) deprive Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by Seller to the contrary, no such transfer or approval by Seller thereof shall be deemed to relieve Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto. (3) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subparagraph shall be in a form reasonably satisfactory to Seller. (iii) If the conditions described above are satisfied then the Transfer will be approved and Buyer shall be released from its obligation under this Agreement, as to the portion of the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (iii) apply to all subsequent transferors. (iv) Upon issuance of the Certificate of Completion, Buyer may transfer or assign the Minimum Improvements and/or Buyer's rights and obligations under this Agreement with respect to such Property without the prior written consent of Seller. f. Buyer agrees that (a) it will use the Minimum Improvements as only a single family, owner -occupied homes, (b) it will not seek exemption from real estate taxes on the Property under State law, and (c) it will not transfer or permit transfer of the Property to any entity whose ownership or operation of the property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of New Hope or Seller in accordance with this Agreement). The covenants in this paragraph run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for at least 30 years after the Date of Closing. g. Buyer shall comply with all recommendations of the City Engineer. h. Buyer's construction plans shall be approved by the City Building Official. 10. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to Buyer and prior to receipt by Buyer of the Certificate of Completion of the Minimum Improvements, Buyer fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from Seller to Buyer to do so, then Seller shall have the right to re-enter and take possession of the Property and to terminate (and revert in Seller) the estate conveyed by the Deed to Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of Buyer and failure on the part of Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, Seller at its option may declare a termination in favor of Seller of the title, and of all the rights and interests in and to the Property conveyed to Buyer, and that such title and all rights and interests of Buyer, and any assigns or successors in interest to and in the Property, shall revert to Seller, but only if the events stated in this paragraph have not been cured within the time periods provided above. STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of November, 2019, by Glenn Hammer, the President of GREAT BUY HOMES, INC., a Minnesota corporation, on behalf of said corporation. DRAFTED BY: Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, #201 Brooklyn Park, MN 55443 (763)424-8811 11 Notary Public Notwithstanding anything to the contrary contained in this paragraph, Seller shall have no right to reenter or retake title to and possession of a portion of the Property for which a Certificate of Completion has been issued. 11. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in Seller of title to and/or possession of the Property or any part thereof as provided in paragraph 10, Seller shall apply the Purchase Price paid by Buyer under paragraph 1 of this Agreement as follows: a. First, to reimburse Seller for all costs and expenses incurred by Seller, including but not limited to proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by Seller from the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of ownership thereof by Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by Seller assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof; and any amounts otherwise owing Seller by the Buyer and its successor or transferee; and b. Second, to reimburse Buyer for the balance of the Purchase Price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to Buyer upon delivery of executed, recordable warranty deed to the Property by Buyer to Seller. 12. Notices. All notices required hereunder shall be in writing and shall be deemed to have been duly given and received (a) two (2) business days after depositing of the same in the mail if sent by regular, registered or certified mail, postage prepaid, to the party to whom directed, at such party's address herein set forth; or (b) upon delivery, or attempted delivery if delivered by overnight courier service or hand delivery. Any party shall have the right to designate any other address for notice purposes by written notice to the other party in the manner aforesaid. The addresses of the parties are as follows: SELLER: Economic Development Authority in and for the City of New Hope Kirk McDonald, Executive Director 4401 Xylon Avenue North New Hope, MN 55428-4898 with copy to: Stacy A. Woods, New Hope Assistant City Attorney Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 BUYER: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 1951h Avenue NW Anoka, MN 55303 13. No Broker Involved. Seller and Buyer represent and warrant to each other that there is no broker involved in this transaction with whom it has negotiated or to whom it has agreed to pay a broker commission. Buyer agrees to indemnify Seller for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Seller. 14. Remedies. If Buyer defaults under this Agreement, Seller shall have the right to terminate this Agreement by giving written notice to Buyer as provided by law. If Buyer fails to cure such default as provided by law, this Agreement will terminate, and upon such termination Seller will retain the Earnest Money and neither party shall have any rights or obligations against the other except rights or obligations under this Agreement which provide for continued exercise following the cancellation or other termination of this Agreement. If Seller defaults under this Agreement, Buyer's only remedy shall be to terminate the Agreement and recover the Earnest Money paid to Seller. Buyer shall not have any right to the remedy of specific performance 15. Assignment/Prohibition Against Transfer of Property. Buyer may not assign its rights and obligations hereunder without the prior written consent of Seller, which consent may be granted or withheld by Seller in its sole discretion. 16. Miscellaneous. This Agreement shall be governed by the laws of the State of Minnesota. No amendment of this Agreement shall be valid or binding unless executed by authorized representatives of both Seller and Buyer. The headings and captions of this Agreement are for the convenience of the parties only and shall not be looked to in the interpretation or enforcement of this Agreement. Seller and Buyer acknowledge and agree that each has had opportunity to participate in the drafting of this Agreement and accordingly acknowledge and agree that this Agreement as a whole and each of is clauses are not to be interpreted in favor of or against either party. This Agreement may be signed in counterpart, with each copy of the Agreement binding upon the signing party at the time of signing and together which shall constitute a single document. 17. Survival. The Parties representations contained herein shall survive the delivery of the Deed. IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the above date ("Effective Date"). SELLER: Economic Development Authority in and for the City of New Hope By: Kathi Hemken Its: President Dated: November , 2019 By: Kirk McDonald Its: Executive Director Dated: November 12019 STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) BUYER: GREAT BUY HOMES, INC. By: Glenn Hammer Its: President Dated: November , 2019 The foregoing instrument was acknowledged before me this day of November, 2019, by Kathi Hemken and Kirk McDonald, the President and Executive Director, respectively, of the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota. Notary Public 10 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of November, 2019, by Glenn Hammer, the President of GREAT BUY HOMES, INC., a Minnesota corporation, on behalf of said corporation. DRAFTED BY: Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, #201 Brooklyn Park, MN 55443 (763)424-8811 11 Notary Public Exhibit A Permitted Encumbrances 1. Restrictions, reservations, covenants and easements relating to use or improvement of the Property without effective forfeiture provisions of record on the Effective Date; 2. Building and zoning laws, ordinances, city, state and federal regulations; 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 See attached. Exhibit B Well Sealing Certificate 13 WELL 001 BORINO LOCATION MINNESOTA DEPARTMENT OF HEALTH Minnesota well and Fwln WELL AND BORING SEALING RECORD Mimresot. Unique No. Minnesota SI7 tW, Chapter 1031 orW(Leavs rieg No. H 10 9 6 4 2 Courtly Name Hennepin Township Nwne New Hope Township No. 118 I Rage No- 21 Seal on No. I 5 Fraction (am. i Ig) % Oafa Sealed 11-14-95 Data Wait or Boring Corrinwisd Nutntrrket Street Address or Fire N1cnWrand C,4y o1 Wall or Owing Location 5355 Oregon Ave. N., New Hope Depth Before Sealing 41 w-h OriginalDepth Show exact kza%n of woo or boing Slrolch map of well or boring M secllongrid whh')C. location, showing property ones, roads, and buildings. N H 2 l W ET _ I N rtwr _ _ fii 1 ands c p e Mail_ rock AGUIFER(S) d4l3k A4uller ❑ MuhlaquRw STATIC WATER LEVEL 65 Measured ❑ Estimated 22 ft.below ❑above lend surface WELLIBOIIINO m(wsdersupply wad ❑ Monft WON ❑Env. Bore Hole ❑ OIMr CASING TYPES)) &Gl»I ❑ Plastic ❑ Tile ❑ Other CASINO Diameter DWh Sot iD oversize hcre? Annualar specs in" grouted? 2 in. from 4 to 37 ft. ❑ Yea ® No ❑ Yea (:]No [3 Unknown In. from to ft [] Yes ❑ No ❑ Yes ❑ No ❑ unknown In. from tD ft ❑ Yee ❑ No ❑ Yes [:]No ❑ Unknown PROPERTY OWN1rT?'S NAME I -Adrian Chri5tens-en Properly owners m0ng sd&m It dithrsm than was lomiilon address krdMod dab- Same WELL OWNER'S NAME SCREEWOPEN HOLE Screen from 37 to 41 It. Open H09 born fo It. OBSTRUCTIONMMF"SML Obstruction ❑ Debris ❑ Rh ❑ No Obstruction Type of ObstnutioNDebrielFlti 1 " d . p . & RV R S J T Well owners mailing address It delerenl then properly owners address Mosited above. ObstructloNDebrldFlh removed? 33( Yes ❑ No PUMP, Type ❑ �"� 91 � Present [I Other GEOLOGICAL MATERIAL COLOR AR OFFROM TO MATION II not Known, kMtrste ssserslstl loin slion kg from nearby well or borng. METIWD USED TO SEAL ANNULAR SPACE B ETWEEN 2 CASINGS, OR CASING ANO BORE HOLE: - G No Annular Space Exits ❑ Annular space grouted with tramie Pipe ❑ Casing Pericrsfion/Rernovol In, from to fr. ❑ Perforated ❑ Removed In. from fo R. [] Perforated ❑ Removed Type of psrforalor -•_ _ _ ❑ Other Sri fit: :�•J f-r. r-; GROUTINGMATERIAL(S) Nt Cmt 4 41 12 Grouting Material _ from to h. yards bags tram to fL yards bags — from to ft, yards bags from to f. yards bags ` lY k n1 Cbti REMARKS, SOURCE OF DATA, DN*1CULTIM IN SEALING Well found buried approx. Of down off NE corner of house, approx 21 from edge of house. UNSEALED WELLS AND SOR:Nu8 OlowunasaledweHorbodngonp,-(pWryl ❑ Yea ® No LICENO EDORREGUrERED CONTRACTOR CERTIFICATION This wall or boring was sealed in accordance with Minnesota Rules, Chapter 4726, The Inlormation contained in this report Is true to the beet of my knowledge. Mork Well Co.. Inc. 02133 A Lfcanse a RaghtraNan No. 11-19-96 A rhed ReWasentee'rm Slgnaaue safe Ron Danielson MINN. DEPT OF HEALTH COPY I H 109642 Nam of person Saakrrp weir or Boring I Q MSA Exhibit C Restrictive Covenants See attached. 14 RESTRICTIVE COVENANTS THESE RESTRICTIVE COVENANTS ("Agreement") dated effective the day of April, 2020, by and between the City of New Hope, a Minnesota municipal corporation ("City") and GREAT BUY HOMES, INC., a Minnesota corporation ("GREAT BUY"). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between the City and GREAT BUY dated effective November 2019 ("Purchase Agreement"), GREAT BUY purchased the real property located at 5353 Oregon Avenue North in the City of New Hope from 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"), which property is legally described as "Lot 1, Block 1, Lammle Addition, Hennepin County, Minnesota" ("Property") which purchase closed on April 1, 2020; and WHEREAS, GREAT BUY has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and GREAT BUY have agreed GREAT BUY 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 City and GREAT BUY have agreed the City may levy a $20,000.00 assessment against the Property prior to GREAT BUY'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 is an additional consideration for the sale of the Property to GREAT BUY. NOW THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, GREAT BUY agrees as follows: AGREEMENT 1. Restriethe Covenants. GREAT BUY hereby covenants and agrees with the City that the Property is restricted by the following covenants: a) The initial conveyance of the residential dwelling ("Dwelling") constructed upon the Property will be only to "Owner-occupant(s)". "Owner -occupant" is defined as an individual that purchases the Property from GREAT BUY 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 two (2) consecutive years 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 City of an Affidavit signed by GREAT BUY 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 two (2) year anniversary of the date the Property was conveyed in compliance with paragraph 1(a). 3. Waiver by City. Notwithstanding the restrictions stated above, the City 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. A reement to Assessment. GREAT BUY acknowledges and agrees the City 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 April 1, 2021; and/or (b) if GREAT BUY sells the Property with the completed home to a non -owner -occupant in violation of paragraph 1(a) above. Further, GREAT BUY 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 GREAT BUY. GREAT BUY 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 GREAT BUY or an Owner - occupant should breach their respective obligations under this Agreement, the City will suffer irrevocable harm from which a recovery of money damages would be an inadequate remedy. It is therefore agreed that the City 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 City's rights to such injunctive relief shall be cumulative with and in addition to any other rights, remedies or actions which the City may have. 7. GREAT BUY's Successors. This Agreement shall not be terminated by: a) Voluntary dissolution of GREAT BUY or any parent, subsidiary or successor of GREAT BUY; b) Merger whereby GREAT BUY (or such parent, subsidiary or successor of GREAT BUY) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of GREAT BUY. 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 City: City of New Hope Attn: Kirk McDonald 4401 Xylon Avenue North New Hope, MN 55428 kmcdona1d@ci.new-ho-De.mn.us If to GREAT BUY: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 195th Avenue NW Anoka, MN 55303 glennhammerAg.com 10. Governing Law. All matters relating to the interpretation, construction, validity and enforcement of this Agreement shall be governed by the internal laws of the State of Minnesota. 11. Cumulative Rim. Each and all of the various rights, power and remedies of the City in this Agreement shall be considered as cumulative with and in addition to any other rights, powers, or remedies of City, 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. Amendmcnt. This Agreement may be modified or amended only by a written instrument executed by GREAT BUY and the City. 13. Counterpart Signatures. 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. IN AGREEMENT, the parties have executed these Restrictive Covenants effective the day and year first above -written. 4 City of New Hope Kirk McDonald Its: City Manager Dated: April , 2020 STATE OF MINNESOTA }ss. COUNTY OF HENNEPIN GREAT BUY HOMES, INC. By: Glenn Hammer Its: President Dated: April , 2020 The foregoing instrument was acknowledged before me this day of April, 2020, by Kirk McDonald, the City Manager of the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. (Notary Public Seal) Notary Public STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of April, 2020, by Glenn Hammer, the President of GREAT BUY HOMES, INC., 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) 424-881 1P:Wttomey\SAS\l Client Files\2 City of New Hope\99-21804 Variance for 5355 Oregon Ave N\Restrictive Covenant - 5353 Oregon Ave. N.docx E Exhibit D Assessment Agreement See attached. 15 ASSESSMENT AGREEMENT THIS ASSESSMENT AGREEMENT ("Agreement") dated effective as of the _ day of April, 2020, by and between the City of New Hope, a Minnesota municipal corporation ("City") and GREAT BUY HOMES, INC., a Minnesota corporation ("GREAT BUY"). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between City and GREAT BUY dated effective November ___, 2019 ("Purchase Agreement") GREAT BUY purchased the real property located at 5353 Oregon Avenue North in the City of New Hope from 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"), which property is legally described as "Lot 1, Block 1, Lammle Addition, Hennepin County, Minnesota" ("Property") which purchase closed on April 1, 2020; and WHEREAS, GREAT BUY has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and GREAT BUY have agreed GREAT BUY 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 City and GREAT BUY have further agreed the City may levy a $20,000.00 assessment against the Property prior to GREAT BUY's sale of the Property with the completed home if it is not being sold to an owner -occupant to be owned and occupied by the owner -occupant for at least two (2) years. Further, said assessment may be certified to Hennepin County for collection with real estate taxes payable in a single installment. AGREEMENT 1. Com letion of Pro'ect. GREAT BUY hereby covenants and agrees with the City that the new home on the Property shall be fully completed on or before April 1, 2021. Fully completed shall mean the Property shall be improved with a new single-family house. 2. Agreement to Assessment. GREAT BUY acknowledges and agrees the City 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 April 1, 2021; (b) if GREAT BUY sells the Property with the completed home to a non -owner -occupant; and/or (c) if the Property is leased to a non -owner -occupant in the first two (2) years after initial conveyance. Further, GREAT BUY 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 GREAT BUY. GREAT BUY expressly waives objection to any irregularity with regard to any assessment levied against the Property per this Agreement or any claim that the amount thereof levied against the Property is excessive, together with all rights to appeal the assessment in the courts. 4. GREAT BUY's Successors. This Agreement shall not be terminated by: a) The voluntary dissolution of GREAT BUY or any parent, subsidiary or successor of GREAT BUY; b) Merger whereby GREAT BUY (or such parent, subsidiary or successor of GREAT BUY) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of GREAT BUY. 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. 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. 6. 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 City: City of New Hope Attn: Kirk McDonald 4401 Xylon Avenue North New Hope, MN 55428-4898 kmedonald ci.new-ho e.nm.us 2 If to GREAT BUY: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 1951h Avenue NW Anoka, MN 55303 glennhammer@q.com 7. Governine 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. 8. Cumulative Rights. Each and all of the various rights, power and remedies of the City in this Agreement shall be considered as cumulative with and in addition to any other rights, powers, or remedies of the City, 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. 9. Amendment. This Agreement may be modified or amended only by a written instrument executed by GREAT BUY and the City. 10. Counterpart Signatures. 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. IN AGREEMENT, the parties have executed this Assessment Agreement effective the day and year first above -written. EXECUTION AND NOTARY PAGE FOLLOWS City of New Hope Kirk McDonald Its: City Manager Dated: April , 2020 STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN GREAT BUY HOMES, INC. By: Glenn Hammer Its: President Dated: April_, 2020 The foregoing instrument was acknowledged before me this day of April, 2020, by Kirk McDonald, the City Manager of the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. (Notary Public Seal) Notary Public STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of April, 2020, by Glenn Hammer the President of GREAT BUY HOMES, INC., a Minnesota corporation, on behalf of said corporation. (Notary Public Seal) Notary Public Drafted By: JENSEN SONDRALL PERSELLIN & WOODS, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763)424-8811 P:\Attomey\SAS\l Client Files\2 City of New Hope\99-21804 Variance for 5355 Oregon Ave N\Assessment Agreement - 5353 Oregon Ave. N.docx 4 Exhibit E Request for Proposal ("RFP") Guidelines See attached. 16 The City of New Hope Economic Development Authority (EDA) is requesting proposals from builders to purchase two vacant lots located at 5353 and 5355 Oregon Avenue North, for the construction of two new single-family homes. The lots are being offered as part of the city's scattered site housing program, which focuses on the removal or rehabilitation of distressed properties. The site was previously occupied by a distressed single-family home that was demolished by the EDA. Enclosed, please find the Proposal Form and Guidelines for submitting 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 on Wednesday, October 9, 2019, at noon. If you have questions about the RFP process or the enclosed Guidelines, please contact Jeff Alger in the Community Development Department at the city of New Hope, 763-531-5119 or jalger@newhopemn.gov. Thank you for your interest! Regards, M is Jeff Alger 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. 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 houses may be built speculatively or for specific buyers. 3. The city is interested in proposals that will generate the highest valued homes possible. The new homes must be owner -occupied, single-family homes. Owner occupancy restrictions will be documented in the development agreement and secured with a recorded restrictive covenant. The occupancy requirement only applies to the first buyer and lasts for a period of two years. Full details regarding the legal language of this requirement are available upon request. 4. No preferred home style has been determined for these lots. However, preference will be given to proposals with the most finished square footage that include high quality exterior materials and upgraded interior amenities. Copies of previously approved proposals are available upon request. Following approval of a proposal by the City Council, the selected builder will be asked to enter into a purchase and development agreement. This agreement will address the sale of the lots 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 has been completed, final approval by resolution will take place at the next regularly scheduled EDA meeting. The closing on the purchase of the lots must take place within 60 days of final EDA approval. The buyer will be responsible for paying the following costs associated with purchasing the properties: • Preparation and issuance of the title commitment. • The cost of the owner's policy or lender's policy of title insurance (if any), sales tax (if any) resulting from the closing, the fees required for recording the deed, the purchase and redevelopment agreement, the assessment agreement and restrictive covenants, and all customary closing fees charged by the title company or other closing agent, if any, utilized to close the transaction contemplated by this agreement (paid at closing). 6. Construction of the new homes must be completed within one year of closing on the purchase of the lots. Specifications: 1. Utilities & Curb Cuts 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. A new utility easement has been established along the south lot line on the southern lot. The utility pole at the southwest corner of this lot has been replaced and the utility pole at the southeast corner of the lot has been or will be permanently removed. Electrical and communications lines have been or will be buried within easements and the right-of-way. A transformer has been or will be installed within the right-of-way where the properties intersect along Oregon Avenue to supply both lots with electricity. b) Any expenses for connection of the houses to private utilities shall be the responsibility of the builder. c) New curb stop boxes have been or will be provided for both lots prior to the sale of the lots. The locations of the curb stop boxes have been or will be marked on -site prior to the sale of the lots and are depicted on the attached sewer and water installation plan. d) Sanitary sewer service stubs have been or will be provided to both lots prior to the sale of the lots. The sewer line for the southern lot previously served the home that was demolished on -site. It has been or will be lined or 4" PVC piping will be installed from the termination point to the main line prior to the sale of the lots. The sewer line for the northern lot is new and will be installed prior to the sale of the lots. Locations of the stubs are depicted on the attached sewer and water installation plan. e) The well that previously served the lot has been sealed and the city has a well and boring sealing record on file. f) The driveways for the new homes must be completely new and fully paved from the street to the garage. A portion of the old driveway remains on Saint Raphael Drive to be used as a construction entrance. This remaining section of the old driveway must be fully removed upon completion of construction of both homes and the curb cut must be replaced with curbing meeting all city standards. Driveways and off-street parking are not allowed within three (3) feet of any property line abutting another property. Curb cut accesses for two -car garages may not exceed 24 feet. Curb cut accesses for three -car garages may not exceed 28 feet. Driveways may not be placed above sewer lines. 2. Building Standards & Design Guidelines a) All site improvements shall comply with the New Hope City Code. b) The houses shall have at least three (3) finished bedrooms and two (2) finished bathrooms. l n� Specifications: c) The parcel is located on the corner of Oregon Avenue North and Saint Raphael Drive. Orientation of the house on the southern lot shall be toward Oregon Avenue North. Orientation of the house on the northern lot may face Oregon Avenue North or Saint Raphael Drive, if a design that meets all setback requirements can be achieved. d) The houses shall have an attached garage that will accommodate a minimum of two (2) vehicles. Three (3) stall garages are preferred. e) The designs should emphasize front doors as the focal point for the front of the houses. Large and usable front porches are desired. Garage door dominance in design should be minimized as much as possible. f) 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 that generates noise, such as air-conditioning cooling structures or condensers, shall be located within the front yard, a side yard setback, or a drainage/utility easement. g) Low maintenance exterior materials (siding, soffit, doors, and windows) must be utilized. The use of brick or stone accents is preferred. Vinyl or other low maintenance siding materials are generally acceptable and can be made more desirable with the use of shakes, fish scales or other styles to break up the pattern of lap siding. 3. Landscaping a) The lots must be landscaped to be aesthetically pleasing un all seasons. Land forms and plant materials must be used to define the site and blend neatly with the adjoining properties. The lot area remaining after providing for off-street parking, sidewalks, driveways, buildings, and other requirements must be landscaped using ornamental grass, shrubs, trees or other acceptable vegetation or treatment generally used in landscaping. The use of grass seed or hydro -seed is not acceptable for restoration of disturbed areas. All grass that is planted must be sod. Additionally, all lawn areas must be irrigated with underground irrigation systems. Landscaping must be completed by July 1, 2020 or upon request for a Certificate of Occupancy, whichever occurs later. b) A minimum of two (2) large -species deciduous shade trees must be planted in each front yard. A minimum of two (2) large -species deciduous shade trees must be planted in each rear yard. Trees should be a minimum of 2" in diameter. A list of prohibited trees is attached. Specifications: 4. Setbacks a) The proposed homes must be designed to meet all setback requirements. A CAD file will be provided to help expedite the design process for any architect designing houses for the sites. Lot Front Yard Rear Yard Side Corner Interior Side Yard Attached Gara a Interior Side Yard House Southern 25 feet 25 feet N/A 5 feet 10 feet Northern (Oregon Ave) 25 feet 25 feet (St. Raphael Dr) 20 feet 5 feet 10 feet 5. Builder Selection Criteria a) Builder must be licensed in the State of Minnesota as a Residential Building Contractor. b) Builder must provide the addresses of three houses they have built in Minnesota within the last five years, or evidence of qualification acceptable to the EDA. c) Builder must be capable of completing the homes within one year of closing on the purchase of the lots. 6. Required Attachments by Builder a) Site plan showing the layouts of the homes on the lots. 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, including types of exterior materials (color elevations preferred). f) Narrative description of the interior trim packages. Include description of flooring. g) Estimated sales prices of the homes. h) Pictures of similar homes (if available). Specifications: 7. Drainage Plans a) At the time of submission of a building permit, the builder must submit grading and drainage plans for each lot illustrating site grading, drainage patterns, and first floor elevations. These plans will be subject to review and approval by the city engineer. S. Attachments • Location map • Draft final plat • Utility relocation map Sewer and water installation plan • Prohibited tree list The previously referenced Computer Aided Design (CAD) file for the lots is available and will be included in the email requesting proposals. These lots are being offered at a minimum base price of $60,000 per lot/$120,000 total. The EDA will consider higher offers for the lot. However, submitting a higher offer will not guarantee the selection of a proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase the two lots for $ ($120,000 minimum), and build two new single-family houses in accordance with the RFP guidelines. If a builder's proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name: State License Number: Telephone: Address: City/State/Zip: Signature: Date: Print Name and Proposals are due by Wednesday, October 9, 2019, at noon Submit this proposal form and required attachments to: Jeff Alger Community Development Specialist, City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 763.531.5119 jalger@newhopemn.gov Proposals may be submitted by hand delivery, U.S. Mail, or email Exhibit F Buyer's Proposed Plans See attached. P:\Attomey\SAS\l Client Files\2 City of New Hope\99-21804 Variance for 5355 Oregon Ave N\Purchase and Redevelopment Agreement 5353 Oregon Ave N.docx 17 These lots are being offered at a minimum base price of $60,000 per lot/$120,000 total. The EDA will consider higher offers for the lot. However, submitting a higher offer will not guarantee the selection of a proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase the two lots for $ 130 po © _ ($120,000 minimum), and build two new single-family houses in accordance with the RO guidelines. If a builder's proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name: V,17pr' A60 ��� State License Number: FK631. j'�6Ca ff Telephone:.. CP o R 1 7 I _ E-mail C.c,' r+-t . C Address ?6 f q's, AV /0") City/State/Zip: O 33 Signature: 7N Date: Print Name and Title: G� �?•r7-,i��-5 Proposals are due by Wednesday, October 9, 2019, at noon Submit this proposal form and required attachments to: Jeff Alger Community Development Specialist, City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 763.531.5119 jalger@newhopemn.gov Proposals may be submitted by hand delivery, U.S. Mail, or email Members of EDA and City Council We appreciate your consideration for our proposed designs to construct on your two sites. We have enjoyed a great working relationship with your city and staff and are grateful for the the opportunity to potentially partner up again. We believe these two plans will work particularly well given the shape of these lots and would be a welcoming addition both to the surrounding neighbors and the end buyer. Our focus on nice curb appeal yet a plan not too overbearing was our goal here. As a builder in the industry for roughly 25 years I have deep pride in the products I construct. I have extensive background in the higher end market so I naturally focus on quality and details. My goals are to not just make this home look nice for your acceptance, but to construct a quality home for the end buyer that will be an asset to them and the city for decades. I focus on quality subcontractors that perform their jobs well and with minimal disruption to the neighbors and a good working relationship with the city staff throughout the process. Both houses anticipated sale will be $350,000 Granite in Kitchen Engineered wood floors kitchen/ Dining Each home will have 5 bedrooms, 3 bathrooms Interior to somewhat match attached pictures As always, we are grateful to be considered again for another project. If at any time you have questions or concerns that I can address, never hesitate to contact me. Sincerely, Glenn Hammer Great Buy Homes Inc. 12 G. FFPONT TO REAR 17 N a(�T4 ze> FRONT ELEVATION (10-05-19) NO SCALE 0 0 m 0 U U- LL W J W a Z Cc W a c? J � W m LJ w J � z F— o J o tt U) m LOWER LEVEL PLAN (10-07-19) 1253 S.F. (LOWER LEVEQ NO SCALE OF 5 4.9 �j 01-C awl2'-01 10-0" T•O' 1 _J ni � aP--, s2'•O'x14�9 u o } ,.off 9.-U x I ! 5'lY 1 9-1O' 2a-a 11 v J LJ I� j1 I ' r q -- ( is 1 fvPfll�,� b 124' I I b '330-27 -5 r 19-9 [U-2* UPPER LEVEL PLAN (03-28-19) 5 1282 S.P. (UPPER LEVE) 624 S.P. (GARAGE) NO SCALE 0 3i 11 [I f1 a i3 11 9 4 LOWER LEVEL PLAN (10-07-19) 1253 S.F. (LOWER LEVEQ NO SCALE OF 5 4.9 �j 01-C awl2'-01 10-0" T•O' 1 _J ni � aP--, s2'•O'x14�9 u o } ,.off 9.-U x I ! 5'lY 1 9-1O' 2a-a 11 v J LJ I� j1 I ' r q -- ( is 1 fvPfll�,� b 124' I I b '330-27 -5 r 19-9 [U-2* UPPER LEVEL PLAN (03-28-19) 5 1282 S.P. (UPPER LEVE) 624 S.P. (GARAGE) NO SCALE 0 3i 11 [I f1 a i3 11 9 4 I I fin, v Flr-tit_-�_ v��! �- r 1 S89045'25"W 153.55 _ ` 20' setback v nvn t �v Rkin I n I f}• K)-L PARCEL B (±9691 s.f.)LU r 00 K ..._. 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' �-•i; ti •. - - ..- - [�. .. �'- ' �j .ram• _ _ _ � �,.t„ .-'T ,-;i ,, is �' � :y- •� l�y'S_� .• lam. •..� �' ..��-: ;� i• .. PURCHASE AND REDEVELOPMENT AGREEMENT This Purchase and Redevelopment Agreement ("Agreement") is made by and between GREAT BUY HOMES, INC. 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 November , 2019. 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 5355 Oregon Avenue North, New Hope, Minnesota, and legally described as "Lot 2, Block 1, Lammle Addition, Hennepin County, Minnesota" (the "Property"). 1. Purchase Price. The purchase price for the Property is Sixty -Five Thousand and No/100 Dollars ($65,000.00) (the "Purchase Price"), which Buyer shall pay as follows: an initial payment of One Thousand and No/100 Dollars ($1,000.00) (the "Earnest Money"), which sum shall be paid to Seller upon Buyer and Seller's execution of this Agreement and Sixty - Four Thousand and No/100 Dollars ($64,000.00) payable by wire, cashier's check or cash on the "Date of Closing", as that term is defined in paragraph 6 below. There are no items of personal property or fixtures included in this sale. 2. Title Conveyed. On the Date of Closing, Seller shall deliver a Quit Claim Deed (the "Deed") to Buyer conveying marketable title of record, free and clear of liens, encumbrances, assessments, and restrictions, except for the "Permitted Encumbrances" set forth on Exhibit A and the restrictive covenants referenced below in paragraph 4.b. Representations of Seller. Seller represents and agrees as follows: a. Seller owns the Property and has the right to sell the same, and that there are no unrecorded contracts, leases, easements or other agreements or claims of any third party affecting the use, title, occupancy or development of the Property, there are no parties other than Seller in possession of any portion of the Property, and no person, firm or entity has any right of refusal, option or other right to acquire all or any part of the Property. b. Seller has not received any notice from any governmental authority concerning any eminent domain, condemnation, special taxing district, or rezoning proceedings. C. To the best of Seller's knowledge without inquiry there are no septic systems or wells on the Property other than the sealed well referenced in the Certificate on the attached Exhibit B. d. Seller represents that it has the requisite power and authority to enter into and perform this Agreement and any Seller's Closing Documents signed by it. e. Seller is not a "foreign person," "foreign partnership," "foreign trust" or "foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code. f. To the best of Seller's knowledge without inquiry, no above ground or underground tanks are located in or about the Property. g. Seller makes no other warranties as to the condition of the Property. Seller agrees that any breach of Seller's foregoing representations shall be grounds for Buyer to terminate this Agreement. In the event of such termination, the Earnest Money shall be returned. Wherever herein a representation is made "to the best of Seller's knowledge," such representation is limited to the actual knowledge of the President and/or Executive Director of Seller. 4. Representations of Buyer. As an essential part of this Agreement and in order to induce Seller to enter into this Agreement and sell the Property, Buyer hereby represents to Seller: a. SUBJECT TO THE FOREGOING REPRESENTATIONS BY SELLER, BUYER HEREBY ACKNOWLEDGES THAT BUYER IS PURCHASING THE PROPERTY IN "AS IS" CONDITION AS TO THE USE OF THE PROPERTY. Buyer understands and agrees that the Purchase Price is the fair market value of the Property in its "AS IS" condition. Buyer acknowledges that they have inspected or have had the opportunity to inspect the Property and agree to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for the purpose of determining if the soil is suitable for construction of the homes described in paragraph 10 below. If the soil is determined to be unacceptable Buyer may rescind this Agreement by written notice to Seller, in which case the Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer. b. Buyer agrees the first sale of the separate homes on the Property will be sold to owner -occupants. An "owner -occupant" shall be defined as an individual(s) that purchases the home from Buyer by warranty deed or a contract for deed and intending to reside in the home as a primary residence. To insure the intent of the parties that the home constructed on the Property is purchased by an owner - occupant, Buyer will record restrictive covenants and assessment agreement against the Property prohibiting the leasing of the home for a period of two (2) years after the sale of such home by Buyer to an owner -occupant of the home. The restrictive covenants and assessment agreement shall be substantially in the form of the documents attached hereto as Exhibits C and D, respectively. Further, the restrictive covenants and assessment agreement shall provide that the EDA may levy a $20,000.00 assessment on the Property prior to the sale if the lot is not being sold to an owner -occupant. The EDA shall release the Property from these restrictive covenants and assessment agreement upon the issuance of a certificate of occupancy for the construction of the home on the Property and upon the receipt by the EDA of an affidavit signed by Buyer and the owner - occupants verifying owner -occupants' intent to reside in the homes as their primary residence in compliance with the restrictive covenants described herein in the form attached as Exhibit C. C. Within one (1) year of Closing, Buyer shall complete the construction of the single family home on the Property (the Improvements). The Improvements must be consistent with all building and zoning requirements and the restrictive covenants applicable to the Property. The representations set forth in this paragraph shall be incorporated into appropriate documents to be recorded against the Property (whether by declaration, restrictive covenants, or development agreement as hereinafter defined) subject to approval by Seller and Buyer as a condition of Closing. 5. Title Commitment and Policy. a. Seller shall deliver to Buyer a Commitment for an ALTA Form B owner's policy of title insurance (the "Commitment") issued by a title insurance company of Buyer's choice ("Title Company") and covering title to the Property, in the amount of the Purchase Price. Buyer agrees to pay the costs associated with the preparation and issuance of the Commitment; Buyer shall pay the premium for the owner's policy, if any, and the lender's policy, if any, along with the price for any endorsements requested by Buyer or Buyer's lender. b. Buyer shall have fifteen (15) days after receipt of the Commitment to review and approve the title to the Property and to object to any exception to title that is disclosed in the Commitment or which is otherwise discovered by Buyer. In the event that Buyer does not within such fifteen (15) day period give notice to Seller objecting to any such exceptions, then all such exceptions shall be deemed approved and shall be considered a part of the Permitted Encumbrances. If Buyer timely objects to an exception to title, then on or before the tenth (10) day following Buyer's notice of exception, Seller shall remove the exception or notify Buyer that Seller is unwilling or unable to remove the exception. Within five (5) days of any notice by Seller that Seller it is unable to remove an exception to title, Buyer may elect by notice to Seller to either: (i) terminate this Agreement, whereupon all of the Earnest Money shall be returned to Buyer and the parties shall be released from all further obligations hereunder except obligations under this Agreement which provide for continued exercise . following the cancellation or other termination of this Agreement; or (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. 3 6. Closing. a. Closing shall occur on or before April 1, 2020 (the "Date of Closing" or "Closing"), unless both parties agree, in writing, to an earlier or later time. b. Closing shall occur at the office of the Title Company. C. Seller shall deliver at closing the following executed and acknowledged documents: (i) the Deed; (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, the Purchase and Redevelopment Agreement, the assessment agreement and restrictive covenants and all customary closing fees charged by the Title Company or other closing agent to both Seller and Buyer, if any, utilized to close the transaction contemplated by this Agreement. General real estate taxes payable in the year of closing shall be prorated by Seller and Buyer as of the closing date based upon a calendar year. Each party shall pay its own attorney's fees. 8. Condemnation. If, prior to the Date of Closing, all or any part of the Property shall be condemned by governmental or other lawful authority, Buyer shall have the option of (a) completing the purchase contemplated by this Agreement, in which event all condemnation proceeds or claims thereof shall be assigned to Buyer, or (b) canceling this Agreement, in which event the Earnest Money shall be refunded and this Agreement shall be terminated with neither party having any rights against or obligations to the other except rights or obligations under this Agreement which provide for continued exercise following closing or cancellation or other termination of this Agreement, and Seller shall be entitled to any and all condemnation proceeds. 9. Construction of Homes. Buyer agrees that it will construct a new single family home on the Property. This covenant shall survive the delivery of the Deed. a. The single family home described in this paragraph is referred to as the "Minimum Improvements." b. The Minimum Improvements shall consist of one new single family home, and shall be constructed substantially in accordance with the RFP Guidelines attached as Exhibit E and the proposal approved by Seller on November 12, 2019 attached as Exhibit F. C. Construction of the Minimum Improvements must be substantially completed within one (1) year following Closing. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of New Hope building inspector. d. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of Buyer to construct such Minimum Improvements (including the date for completion thereof), Seller will furnish Buyer with a Certificate of Completion for such improvements. Such certification by Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the Deed with respect to the obligations of Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof. The certificate provided for in this paragraph of this Agreement shall be in such form as will enable it to be recorded in the Hennepin County Recorder's Office and other instruments pertaining to the Property. If Seller shall refuse or fail to provide any certification in accordance with the provisions of this paragraph, Seller shall, within thirty (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. e. Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (i) Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer"), without the prior written approval of Seller. The term "Transfer" does not include encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable Buyer or any successor in interest to the Property, or any part thereof, to construct the Minimum Improvements or component thereof. (ii) If Buyer seeks to effect a Transfer prior to issuance of the Certificate of Completion, Seller shall be entitled to require as conditions to such Transfer that: (1) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of Seller, necessary and adequate to fulfill the obligations undertaken in this Agreement by Buyer as to the portion of the Property to be transferred; and (2) Any proposed transferee, by instrument in writing satisfactory to Seller and in form recordable in the public land records of Hennepin County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of Seller, have expressly assumed all of the obligations of Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by Seller) deprive Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by Seller to the contrary, no such transfer or approval by Seller thereof shall be deemed to relieve Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto. (3) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subparagraph shall be in a form reasonably satisfactory to Seller. (iii) If the conditions described above are satisfied then the Transfer will be approved and Buyer shall be released from its obligation under this Agreement, as to the portion of the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (iii) apply to all subsequent transferors. (iv) Upon issuance of the Certificate of Completion, Buyer may transfer or assign the Minimum Improvements and/or Buyer's rights and obligations under this Agreement with respect to such Property without the prior written consent of Seller. i Buyer agrees that (a) it will use the Minimum Improvements as only a single family, owner -occupied homes, (b) it will not seek exemption from real estate taxes on the Property under State law, and (c) it will not transfer or permit transfer of the Property to any entity whose ownership or operation of the property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of New Hope or Seller in accordance with this Agreement). The covenants in this paragraph run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for at least 30 years after the Date of Closing. g. Buyer shall comply with all recommendations of the City Engineer. h. Buyer's construction plans shall be approved by the City Building Official. 10. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to Buyer and prior to receipt by Buyer of the Certificate of Completion of the Minimum Improvements, Buyer fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from Seller to Buyer to do so, then Seller shall have the right to re-enter and take possession of the Property and to terminate (and revert in Seller) the estate conveyed by the Deed to Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of Buyer and failure on the part of Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, Seller at its option may declare a termination in favor of Seller of the title, and of all the rights and interests in and to the Property conveyed to Buyer, and that such title and all rights and interests of Buyer, and any assigns or successors in interest to and in the Property, shall revert to Seller, but only if the events stated in this paragraph have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this paragraph, Seller shall have no right to reenter or retake title to and possession of a portion of the Property for which a Certificate of Completion has been issued. 11. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in Seller of title to and/or possession of the Property or any part thereof as provided in paragraph 10, Seller shall apply the Purchase Price paid by Buyer under paragraph 1 of this Agreement as follows: a. First, to reimburse Seller for all costs and expenses incurred by Seller, including but not limited to proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by Seller from the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of ownership thereof by Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by Seller assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof, and any amounts otherwise owing Seller by the Buyer and its successor or transferee; and b. Second, to reimburse Buyer for the balance of the Purchase Price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to Buyer upon delivery of executed, recordable warranty deed to the Property by Buyer to Seller. 12. Notices. All notices required hereunder shall be in writing and shall be deemed to have been duly given and received (a) two (2) business days after depositing of the same in the mail if sent by regular, registered or certified mail, postage prepaid, to the party to whom directed, at such party's address herein set forth; or (b) upon delivery, or attempted delivery if delivered by overnight courier service or hand delivery. Any party shall have the right to designate any other address for notice purposes by written notice to the other party in the manner aforesaid. The addresses of the parties are as follows: SELLER: Economic Development Authority in and for the City of New Hope Kirk McDonald, Executive Director 4401 Xylon Avenue North New Hope, MN 55428-4898 with copy to: Stacy A. Woods, New Hope Assistant City Attorney Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 BUYER: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 1951h Avenue NW Anoka, MN 55303 13. No Broker Involved. Seller and Buyer represent and warrant to each other that there is no broker involved in this transaction with whom it has negotiated or to whom it has agreed to pay a broker commission. Buyer agrees to indemnify Seller for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Seller. 14. Remedies. If Buyer defaults under this Agreement, Seller shall have the right to terminate this Agreement by giving written notice to Buyer as provided by law. If Buyer fails to cure such default as provided by law, this Agreement will terminate, and upon such termination Seller will retain the Earnest Money and neither party shall have any rights or obligations against the other except rights or obligations under this Agreement which provide for continued exercise following the cancellation or other termination of this Agreement. If Seller defaults under this Agreement, Buyer's only remedy shall be to terminate the Agreement and recover the Earnest Money paid to Seller. Buyer shall not have any right to the remedy of specific performance 15. Assignment/Prohibition Against Transfer of Property. Buyer may not assign its rights and obligations hereunder without the prior written consent of Seller, which consent may be granted or withheld by Seller in its sole discretion. 16. Miscellaneous. This Agreement shall be governed by the laws of the State of Minnesota. No amendment of this Agreement shall be valid or binding unless executed by authorized representatives of both Seller and Buyer. The headings and captions of this Agreement are for the convenience of the parties only and shall not be looked to in the interpretation or enforcement of this Agreement. Seller and Buyer acknowledge and agree that each has had opportunity to participate in the drafting of this Agreement and accordingly acknowledge and agree that this Agreement as a whole and each of is clauses are not to be interpreted in favor of or against either party. This Agreement may be signed in counterpart, with each copy of the Agreement binding upon the signing party at the time of signing and together which shall constitute a single document. 17. Survival. The Parties representations contained herein shall survive the delivery of the Deed. IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the above date ("Effective Date"). SELLER: Economic Development Authority in and for the City of New Hope By: Kathi Hemken Its: President Dated: November , 2019 By: Kirk McDonald Its: Executive Director Dated: November , 2019 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) BUYER: GREAT BUY HOMES, INC. By: Glenn Hammer Its: President Dated: November , 2019 The foregoing instrument was acknowledged before me this day of November, 2019, by Kathi Hemken and Kirk McDonald, the President and Executive Director, respectively, of the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota. Notary Public 10 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; Governmental regulations, if any, affecting the use and occupancy of the Property; 4. All rights in public highways upon the land; 5. Easements for public rights -of -way and public and private utilities, which do not interfere with present improvements; 6. Reservations to the State, in trust for the taxing districts concerned, of minerals and mineral rights in those portions of the Property the title to which may have at any time heretofore been forfeited to the State for nonpayment of real estate taxes. 7. The lien of unpaid special assessments, if any, not presently payable but to be paid as a part of the annual taxes to become due; 8. The lien of unpaid real estate taxes, if any, not presently payable but to be paid as part of the annual taxes to become due. 12 See attached. Exhibit B Well Sealing Certificate 13 WELL OR BORING LOCATION MINNESOTA DEPARTMENT OF HEALTH Minnosota well and BoringSga WELL AND BORING SEALING RECORD Minnesota Unique No. Minnesota Stis ides, Chapter 1031 or W-sense No. (Les" btenk k rot known) H 109642 County Name Hennepin Township Name Township No. Range No. Section No. Fraction (am. -w Ig.) Data Sealed Date Wait or Boring Corrbtwisd New Hope 118 21 5 1 %d M fs 11-14-95 Numerical Street Address or Fire Number and Oity of Well or Boring Location 5355 Oregon Ave. N., New Hope Depth Before Seating 41 , Original Depth n. Show exact location of well or boring Sketch map of well or bo ft In section gild with W. location, showing property lime, roads, and Iwitdknga. N 4.. ell W E �- AQ(RPER(S) Apuifar ❑ Multlagtrlfer STATIC WATEA LEVEL 6(] Measured ❑ Estimated Y 1f 22 It. 15 below ❑ shove land surface til WELLIBORNW D(Water Supply Wall ❑ Monh. Wen ❑ Env. Bore Hole [IOther CASINO TYPE(B) ` `. awl ❑ Plastic ❑ Too ❑ Other _ 1 N rub - 1 a n d s c D e sort _ rock' CAtNNO DWnelar Depth Set In overoize hole? Annualar apeft innlWy pouted? 2 in. from 4 to 37 ry, ❑ Yea ® No ❑ Yes ❑ No ❑ Unknown in. from to 14 ❑ Yee ❑ No ❑ Yet ❑ No ❑ Unknown PROPERTY OWNER'S NAME Adrian n In. from to ft. ❑ Yes ❑ No ❑ Yes ❑ No ❑ Unknown Property owners malmg W Weas s d0-rern then was i—don address Indicated above. Same SCREEkWEH NOLE Screen from 37 to 41 R. Open Hoe from to 8, OBSTRUCTION MSRIBIPILL [1 Obatnrcnon ❑ Debris ❑ Fill ❑ No OWtuction WELL OWNER'S NAME Type lot 0betructioNDebrielFln 1 nr d . p . & R V R S J T Well owners making address 11 different than properly owners address IWWW above. ObslnrcllorVDsbds/Fnl removed? J)( Yes ❑ No PUMP Type ❑ Removed 91 Not Pint ❑ Other GEOLOWAL MATERIAL I COLOR I OF PROM TO 11 net known, Irawle estimated fbmeem log from nearby wall or boring. METHOD USED TO SEAL ANNULAR SPACE BETWEEN 2 CASINGS, OR CASINO AND BORE HOLE: :lam No Annular Spence Exits ❑ Annular space grouted with tmmie pipe ❑ Casing PerforanoNRsmwvol In, from to ft. ❑ Perforated ❑ Removed In. from to �• ❑ Perforated ❑ Removed Type of perforebr p r \t 1� �O 11.:•J ti ❑ Other L �i GROUTING MATERIAL(S) Nt Cmt 4 41 1 Grouting Material from to It. yards bags from to ft. yards bets from to ft, yards beg@ from to R. yards bags Vic" !.� ,' REMARKS, SOURCE OF DATA, OMMULTIES IN SEALING UNSEALED WELLS AND SOWNOS Well found buried approx. 41, OBerunsealed well rubo t on pm~ ❑ Yee ® No LICENSED OR REasTomcownAC oRciffnimATION down off NE corner of house, ap p r o x 21 from edge of house. This wall or boring was sealsd In amordanm with Minnesota Rules, Chapter 4726. The Intormatlon contained In this report te true to the beet or my knowledge. Mork Well Co.,1nc. 02133 _ rrocakarne ` LlcwryrorRsg6k0wW. r 11-19-95 A fTeprsearHarf,+BfOcs+ure [zero Ron Danielson MINN. DEPT OF HEALTH COPY I H 109642 Nana of Pawn SeafkigWd or soft nevrw -ue IMSR Exhibit C Restrictive Covenants See attached. 14 RESTRICTIVE COVENANTS THESE RESTRICTIVE COVENANTS ("Agreement") dated effective the day of April, 2020, by and between the City of New Hope, a Minnesota municipal corporation ("City") and GREAT BUY HOMES, INC., a Minnesota corporation ("GREAT BUY"). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between the City and GREAT BUY dated effective November _, 2019 ("Purchase Agreement"), GREAT BUY purchased the real property located at 5355 Oregon Avenue North in the City of New Hope from 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"), which property is legally described as "Lot 2, Block 1, Lammle Addition, Hennepin County, Minnesota" ("Property") which purchase closed on April 1, 2020; and WHEREAS, GREAT BUY has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and GREAT BUY have agreed GREAT BUY 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 City and GREAT BUY have agreed the City may levy a $20,000.00 assessment against the Property prior to GREAT BUY'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 is an additional consideration for the sale of the Property to GREAT BUY. NOW THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, GREAT BUY agrees as follows: AGREEMENT 1. Restrictive Covenants. GREAT BUY hereby covenants and agrees with the City that the Property is restricted by the following covenants: a) The initial conveyance of the residential dwelling ("Dwelling") constructed upon the Property will be only to "Owner-occupant(s)". "Owner -occupant" is defined as an individual that purchases the Property from GREAT BUY 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 two (2) consecutive years 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 City of an Affidavit signed by GREAT BUY 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 two (2) year anniversary of the date the Property was conveyed in compliance with paragraph 1(a). 3. Waiver by City. Notwithstanding the restrictions stated above, the City 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. GREAT BUY acknowledges and agrees the City 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 April 1, 2021; and/or (b) if GREAT BUY sells the Property with the completed home to a non -owner -occupant in violation of paragraph 1(a) above. Further, GREAT BUY 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 h GREAT BUY. GREAT BUY 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 GREAT BUY or an Owner - occupant should breach their respective obligations under this Agreement, the City will suffer irrevocable harm from which a recovery of money damages would be an inadequate remedy. It is therefore agreed that the City 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 City's rights to such injunctive relief shall be cumulative with and in addition to any other rights, remedies or actions which the City may have. 7. GREAT BUY's Successors. This Agreement shall not be terminated by: a) Voluntary dissolution of GREAT BUY or any parent, subsidiary or successor of GREAT BUY; b) Merger whereby GREAT BUY (or such parent, subsidiary or successor of GREAT BUY) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of GREAT BUY. 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. Runnina 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 City: City of New Hope Attn: Kirk McDonald 4401 Xylon Avenue North New Hope, MN 55428 kincdonald(d ei. new -hop e. m m us If to GREAT BUY: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 195th Avenue NW Anoka, MN 55303 g 1 ennham merCr_r7,a . c om 10. C =o v e rtx i rt p, Lal . All matters relating to the interpretation, construction, validity and enforcement of this Agreement shall be governed by the internal laws of the State of Minnesota. 11. Cumulative Rights. Each and all of the various rights, power and remedies of the City in this Agreement shall be considered as cumulative with and in addition to any other rights, powers, or remedies of City, 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 GREAT BUY and the City. 13. Counterpart Sianafures. 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. IN AGREEMENT, the parties have executed these Restrictive Covenants effective the day and year first above -written. 4 City of New Hope Kirk McDonald Its: City Manager Dated: April , 2020 STATE OF MINNESOTA }ss. COUNTY OF HENNEPIN GREAT BUY HOMES, INC. By: Glenn Hammer Its: President Dated: April 52020 The foregoing instrument was acknowledged before me this day of April, 2020, by Kirk McDonald, the City Manager of the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. (Notary Public Seal) Notary Public STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of April, 2020, by Glenn Hammer, the President of GREAT BUY HOMES, INC., 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) 424-8811P:\Attorney\SAS\l Client Files\2 City of New Hope\99-21804 Variance for 5355 Oregon Ave N\Restrictive Covenant - 5355 Oregon Ave. N.docx Exhibit D Assessment Agreement See attached. 15 ASSESSMENT AGREEMENT THIS ASSESSMENT AGREEMENT ("Agreement") dated effective as of the day of April, 2020, by and between the City of New Hope, a Minnesota municipal corporation ("City") and GREAT BUY HOMES, INC., a Minnesota corporation ("GREAT BUY"). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between City and GREAT BUY dated effective November , 2019 ("Purchase Agreement") GREAT BUY purchased the real property located at 5355 Oregon Avenue North in the City of New Hope from 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"), which property is legally described as "Lot 2, Block 1, Lammle Addition, Hennepin County, Minnesota" ("Property") which purchase closed on April 1, 2020; and WHEREAS, GREAT BUY has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and GREAT BUY have agreed GREAT BUY 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 City and GREAT BUY have further agreed the City may levy a $20,000.00 assessment against the Property prior to GREAT BUY's sale of the Property with the completed home if it is not being sold to an owner -occupant to be owned and occupied by the owner -occupant for at least two (2) years. Further, said assessment may be certified to Hennepin County for collection with real estate taxes payable in a single installment. AGREEMENT 1. Completion of Proieet. GREAT BUY hereby covenants and agrees with the City that the new home on the Property shall be fully completed on or before April 1, 2021. Fully completed shall mean the Property shall be improved with a new single-family house. 2. Agreement to Assessment. GREAT BUY acknowledges and agrees the City 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 April 1, 2021; (b) if GREAT BUY sells the Property with the completed home to a non -owner -occupant; and/or (c) if the Property is leased to a non -owner -occupant in the first two (2) years after initial conveyance. Further, GREAT BUY 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 GREAT BUY. GREAT BUY expressly waives objection to any irregularity with regard to any assessment levied against the Property per this Agreement or any claim that the amount thereof levied against the Property is excessive, together with all rights to appeal the assessment in the courts. 4. GREAT BUY's Successors. This Agreement shall not be terminated by: a) The voluntary dissolution of GREAT BUY or any parent, subsidiary or successor of GREAT BUY; b) Merger whereby GREAT BUY (or such parent, subsidiary or successor of GREAT BUY) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of GREAT BUY. 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. 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. 6. 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 City: City of New Hope Attn: Kirk McDonald 4401 Xylon Avenue North New Hope, MN 55428-4898 kmcdonald(@ci.new-hope.mn.us 2 If to GREAT BUY: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 1951h Avenue NW Anoka, MN 55303 glen 4iamrner q.com 7. 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. 8. 0imlllatiye_Rl,,iits. Each and all of the various rights, power and remedies of the City in this Agreement shall be considered as cumulative with and in addition to any other rights, powers, or remedies of the City, 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. 9. Amendment. This Agreement may be modified or amended only by a written instrument executed by GREAT BUY and the City. 10. Cotinterpart Si natures. 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. IN AGREEMENT, the parties have executed this Assessment Agreement effective the day and year first above -written. EXECUTION AND NOTARY PAGE FOLLOWS City of New Hope M. Kirk McDonald Its: City Manager Dated: April , 2020 STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN GREAT BUY HOMES, INC. By: Glenn Hammer Its: President Dated: April_, 2020 The foregoing instrument was acknowledged before me this day of April, 2020, by Kirk McDonald, the City Manager of the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. (Notary Public Seal) Notary Public STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of April, 2020, by Glenn Hammer the President of GREAT BUY HOMES, INC., 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\99-21804 Variance for 5355 Oregon Ave N\Assessment Agreement - 5355 Oregon Ave. N.docx 4 Exhibit E Request for Proposal ("RFP") Guidelines See attached. 16 The City of New Hope Economic Development Authority (EDA) is requesting proposals from builders to purchase two vacant lots located at 5353 and 5355 Oregon Avenue North, for the construction of two new single-family homes. The lots are being offered as part of the city's scattered site housing program, which focuses on the removal or rehabilitation of distressed properties. The site was previously occupied by a distressed single-family home that was demolished by the EDA. Enclosed, please find the Proposal Form and Guidelines for submitting a proposal. To receive consideration, proposals must be subnnitted on a completed Proposal Form and the required attachments and additional information must be included. Incomplete proposals will not be considered. Proposals are due on Wednesday, October 9, 2019, at noon. If you have questions about the RFP process or the enclosed Guidelines, please contact Jeff Alger in the Community Development Department at the city of New Hope, 763-531-5119 or jalger@newhopemn.gov. Thank you for your interest! Regards, rum W., -I a, Jeff Alger 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 houses may be built speculatively or for specific buyers. 3. The city is interested in proposals that will generate the highest valued homes possible. The new homes must be owner -occupied, single-family homes. Owner occupancy restrictions will be documented in the development agreement and secured with a recorded restrictive covenant. The occupancy requirement only applies to the first buyer and lasts for a period of two years. Full details regarding the legal language of this requirement are available upon request. No preferred home style has been determined for these lots. However, preference will be given to proposals with the most finished square footage that include high quality exterior materials and upgraded interior amenities. Copies of previously approved proposals are available upon request. Following approval of a proposal by the City Council, the selected builder will be asked to enter into a purchase and development agreement. This agreement will address the sale of the lots 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 has been completed, final approval by resolution will take place at the next regularly scheduled EDA meeting. The closing on the purchase of the lots must take place within 60 days of final EDA approval. The buyer will be responsible for paying the following costs associated with purchasing the properties: • Preparation and issuance of the title commitment. • The cost of the owner's policy or lender's policy of title insurance (if any), sales tax (if any) resulting from the closing, the fees required for recording the deed, the purchase and redevelopment agreement, the assessment agreement and restrictive covenants, and all customary closing fees charged by the title company or other closing agent, if any, utilized to close the transaction contemplated by this agreement (paid at closing). 6. Construction of the new homes must be completed within one year of closing on the purchase of the lots. Specifications: 1. Utilities & Curb Cuts 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. A new utility easement has been established along the south lot line on the southern lot. The utility pole at the southwest corner of this lot has been replaced and the utility pole at the southeast corner of the lot has been or will be permanently removed. Electrical and communications lines have been or will be buried within easements and the right-of-way. A transformer has been or will be installed within the right-of-way where the properties intersect along Oregon Avenue to supply both lots with electricity. b) Any expenses for connection of the houses to private utilities shall be the responsibility of the builder. c) New curb stop boxes have been or will be provided for both lots prior to the sale of the lots. The locations of the curb stop boxes have been or will be marked on -site prior to the sale of the lots and are depicted on the attached sewer and water installation plan. d) Sanitary sewer service stubs have been or will be provided to both lots prior to the sale of the lots. The sewer line for the southern lot previously served the home that was demolished on -site. It has been or will be lined or 4" PVC piping will be installed from the termination point to the main line prior to the sale of the lots. The sewer line for the northern lot is new and will be installed prior to the sale of the lots. Locations of the stubs are depicted on the attached sewer and water installation plan. e) The well that previously served the lot has been sealed and the city has a well and boring sealing record on file. f) The driveways for the new homes must be completely new and fully paved from the street to the garage. A portion of the old driveway remains on Saint Raphael Drive to be used as a construction entrance. This remaining section of the old driveway must be fully removed upon completion of construction of both homes and the curb cut must be replaced with curbing meeting all city standards. Driveways and off-street parking are not allowed within three (3) feet of any property line abutting another property. Curb cut accesses for two -car garages may not exceed 24 feet. Curb cut accesses for three -car garages may not exceed 28 feet. Driveways may not be placed above sewer lines. 2. Building Standards & Design Guidelines a) All site improvements shall comply with the New Hope City Code. b) The houses shall have at least three (3) finished bedrooms and two (2) finished bathrooms. Specifications: c) The parcel is located on the corner of Oregon Avenue North and Saint Raphael Drive. Orientation of the house on the southern lot shall be toward Oregon Avenue North. Orientation of the house on the northern lot may face Oregon Avenue North or Saint Raphael Drive, if a design that meets all setback requirements can be achieved. d) The houses shall have an attached garage that will accommodate a minimum of two (2) vehicles. Three (3) stall garages are preferred. e) The designs should emphasize front doors as the focal point for the front of the houses. Large and usable front porches are desired. Garage door dominance in design should be minimized as much as possible. f) 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 that generates noise, such as air-conditioning cooling structures or condensers, shall be located within the front yard, a side yard setback, or a drainage/utility easement. g) Low maintenance exterior materials (siding, soffit, doors, and windows) must be utilized. The use of brick or stone accents is preferred. Vinyl or other low maintenance siding materials are generally acceptable and can be made more desirable with the use of shakes, fish scales or other styles to break up the pattern of lap siding. 3. Landscaping a) The lots must be landscaped to be aesthetically pleasing in all seasons. Land forms and plant materials must be used to define the site and blend neatly with the adjoining properties. The lot area remaining after providing for off-street parking, sidewalks, driveways, buildings, and other requirements must be landscaped using ornamental grass, shrubs, trees or other acceptable vegetation or treatment generally used in landscaping. The use of grass seed or hydro -seed is not acceptable for restoration of disturbed areas. All grass that is planted must be Wd. Additionally, all lawn areas must be irrigated with underground irrigation systems. Landscaping must be completed by July 1, 2020 or upon request for a Certificate of Occupancy, whichever occurs later. b) A minimum of two (2) large -species deciduous shade trees must be planted in each front yard. A minimum of two (2) large -species deciduous shade trees must be planted in each rear yard. Trees should be a minimum of 2" in diameter. A list of prohibited trees is attached. M0l Specifications: 4. Setbacks a) The proposed homes must be designed to meet all setback requirements. A CAD file will be provided to help expedite the design process for any architect designing houses for the sites. Lot Front Yard Rear Yard Side Corner Interior Side Yard Attached Garage interior Side Yard House Southern 25 feet 25 feet N/A 5 feet 10 feet Northern (Oregon Ave) 25 feet 25 feet (St. Raphael Dr) 20 feet 5 feet 10 feet 5. Builder Selection Criteria a) Builder must be licensed in the State of Minnesota as a Residential Building Contractor. b) Builder must provide the addresses of three houses they have built in Minnesota within the last five years, or evidence of qualification acceptable to the EDA. c) Builder must be capable of completing the homes within one year of closing on the purchase of the lots, 6. Required Attachments by Builder a) Site plan showing the layouts of the homes on the lots. 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, including types of exterior materials (color elevations preferred). f) Narrative description of the interior trim packages. Include description of flooring. g) Estimated sales prices of the homes. h) Pictures of similar homes (if available). Specifications: 7. Drainage Plans a) At the time of submission of a building permit, the builder must submit grading and drainage plans for each lot illustrating site grading, drainage patterns, and first floor elevations. These plans will be subject to review and approval by the city engineer. S. Attachments ■ Location map • Draft final plat ■ Utility relocation map • Sewer and water installation plan • Prohibited tree list The previously referenced Computer Aided Design (CAD) file for the lots is available and will be included in the email requesting proposals. These lots are being offered at a minimum base price of $60,000 per lot/$120,000 total. The EDA will consider higher offers for the lot. However, submitting a higher offer will not guarantee the selection of a proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase the two lots for $ ($120,000 minimum), and build two new single-family houses in accordance with the RFP guidelines. If a builder's proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name: State License Number: Telephone: E-mail Address: City/State/Zip: Signa Print Name and Proposals are due by Wednesday, October 9, 2019, at noon Submit this proposal form and required attachments to: Jeff Alger Community Development Specialist, City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 763.531.5119 j alger@newhopemn. gov Proposals may be submitted by hand delivery, U.S. Mail, or email F Exhibit F Buyer's Proposed Plans See attached. P:\Attomey\SAS\1 Client Files\2 City of New Hope\99-21804 Variance for 5355 Oregon Ave N\Purchase and Redevelopment Agreement 5353 Oregon Ave N.docx 17 VrC These lots are being offered at a minimum base price of $60,000 per lot/$120,000 total. The EDA will consider higher offers for the lot. However, submitting a higher offer will not guarantee the selection of a proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase the two lots for $ 13 4) Q O © ($120,000 minimum), and build two new single-family houses in accordance with the RfP guidelines. If a builder's proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name: v �� State License Number. 8c �l r Telephone: 6 Q- 2 R 1- i E-mail r&. /..-7 F . C Address��X6 f/�V City/State/Zip: 4Jo 6S3o� Signature: Date: Print Name and Title: Gl ���J< Proposals are due by Wednesday, October 9, 2019, at noon Submit this proposal form and required attachments to: Jeff Alger Community Development Specialist, City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 763.531.5119 jalger@newhopen-in.gov Proposals may be submitted by hand delivery, U.S. Mail, or email Members of EDA and City -Council We appreciate your consideration for our proposed designs to construct on your two sites. We have enjoyed a great working relationship with your city and staff and are grateful for the the opportunity to potentially partner up again. We believe these two plans will work particularly well given the shape of these lots and would be a welcoming addition both to the surrounding neighbors and the end buyer. Our focus on nice curb appeal yet a plan not too overbearing was our goal here. As a builder in the Industry for roughly 25 years I have deep pride in the products I construct. I have extensive background in the higher end market so I naturally focus on quality and details. My goals are to not just make this home look nice for your acceptance, but to construct a quality home for the end buyer that will be an asset to them and the city for decades. I focus on quality subcontractors that perform their jobs well and with minimal disruption to the neighbors and a good working relationship with the city staff throughout the process. Both houses anticipated sale will be $350,000 Granite in Kitchen Engineered wood floors kitchen/ Dining Each home will have 5 bedrooms, 3 bathrooms Interior to somewhat match attached pictures As always, we are grateful to be considered again for another project. If at any time you have questions or concerns that I can address, never hesitate to contact me. Sincerely, Glenn Hammer Great Buy Homes Inc. 12 G. I FRONT TO REAR 12 N&�T4 Z-e>✓ FRONT ELi"VATION ( I 0-05-19) NO SCALE n 0 0 of 0 N S U H U- W J W Q z of Q 0 J � W m 0 W 0W ¢ w J i de O � O K V/ m E OU V C m U E C m T c c a m� �m m h m vZ Lz v m6Zz, � WooL�O QN y m W ma M� mp UW = E` 2, i'2 co", Ern Z� Mo Om U ° 0 LE�'GLN 4` O' 2E-(Y 20-0' -- ^ - --- - - ----- - - - --- ! r ---- --- —i ! 1 I 10'-0 11� �I I T-O' x 26'-(? 11 1 ! 11 ! 8'-4'x 13A' J<dz el— �- I { 0 0 I oFD. ! 1 J I L` i e'er x� 11'-e° x s'-0' I .� I I � _ I II I I I L_ - _-____ J--- �—�------------ --J 4-b' x V-7 1 1'-r x 14'-0' &.090011-1 _==-IT` 7-01 LOWER LEVEL PLAN (10-07-19) 1253 5.F. (LOWER LEVEU NO ` E a N 9 447 _ 2G-a _ 20-0 1047 x 12'•0' 9'-8' x I U-9 b 4'-0 x 7-9 f =I M II 11 Y 0 I 4'� -0' 9'-10' 09 to 5 1 tl�/v i UV jNco 2 gDowl UPPER LEVEL PLAN (03-28-19) B 1282 5.F, (UPPER LEVEL) 624 S.F. (GARAGE) NO SCALE ir Flr-IL_L_ V�\I V L_ > --=. s S89045'25"W r 153.55 7 ( SI]O ` f f A t� A Trn pn A IA! A �,= = 20' setback v /n�r, �� �r YvI 4 o PARCEL B (±9691 s.f.) r LU ;f In t CO � � j ; ' i':. , ��� f '� V"�a� �•� � _.. C.� J � ; ; j „ � +ram --rn.y • .,w ry ti j 12 6 1 FRONT TO REAR 12 FRONT ELEVATION (10-05-19) _ NO SCAB O O O 2 U 2 C� w C7 Z Q � Cr) 0 J � W m a w UJ w U J = H o J w can 9 E 0 U +7 C � � N m U J m m � � a �7 CD m p m m r-E �ClZIn Cf) M r Wrna�� NL m= 00<zm m(D VW = E00 0 m �2 U1m E n m Z v 0 o C) 0` �ava ON .$, ------------------ FF- I I ---------------- grasF N P16L ice. •• '��_ r� ... �f, .. - is Iri V l r cn Ln V f ter- n k ' y ,� 4 a„ J T Y . m 1 f ■ 7 7 4 I -1 f - � 5 uy �7��V ,���A YDi -���+ 4 'i � � Y' i 1 �JjVr , ����:i'._�i.'r.F'w�L'.<<..'3s::r'.YIC :ffli.:d.:GiR3�2yi��"�:' ��L�Ai=y3it'Jd='��K.'r�s.�i.��.s„`'� .� � � � � � '� 1 � ... .. ..._ - ... - - Houston Homes These lots are being offered at a minimum base price of $60,000 per lot/$120,000 total. The EDA will consider higher offers for the lot. However, submitting a higher offer will not guarantee the selection of a proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase the two lots for $ 17ca, [ NL;1Q ($120,000 minimum), and build two new single-family houses in accordance with the RFP guidelines. If a builder's proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name:_ bl' S-,Lw , ZA State License Number:aigE Telephone: E-mail ' , - ( zr Address:_ 252-0 Ymuj City/State/Zip: C �+v;� I rI1 SS �V NJ Signature: T _ Date: Print Name and Title:i3�-r�,+� Proposals are due by Wednesday, October 9, 2019, at noon Submit this proposal form and required attachments to: Jeff Alger Community Development Specialist, City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 763.531.5119 jalger@newhopen-n.gov Proposals may be submitted by hand delivery, U.S. Mail, or email Houston Homes, Inc 9020 Willowby Crossing Mapie Grove, MN 55311 320.420.4213 M attwhouston@gmaii.corn 10-9-19 Dear Mr. Agler, Thank You for the email notification regarding the RFP opportunity for 5353 and 5355 Oregon Ave N. As you are aware, from our previous transaction, (for the property located at 7311 62nd Ave N.), Houston Homes Inc has been in the Real Estate and Construction Industry for over two decades. Our goal is to offer a finished house product that is both value and quality enriched. Our most recent new construction projects have been located in New Hope, Hanover, Monticello and Maple Grove. We are very interested in being the chosen builder for the above mentioned lots , and have included 2 plan options with specifications for our building proposals that we feel would be a valuable asset to the existing neighborhood. Our internet presence on Houzz.com would provide you and or the city board members with some of our most recent projects and hopefully gain you the knowledge of who we are, and how we build. In addition, for your reference, the following addresses are some of our recent completed homes. 7311 62nd Ave N. New Hope, MN 6338 82nd St. NE Monticello, MN 8658 Bison Ave Monticello, MN 8689 Bison Ave Monticello, MN 5934 Deer St. Monticello, MN Sincerely, Matt Houston, President Houston Homes, Inc. Houston Homes, Inc 9020 Willowby Crossing Maple Grove, MN 55311 320.420.4213 M attwhou stonOgmai I. coin 10-9-19 Dear Mr. Alger, We feel that the attached 2 plan options would be wonderful options for the properies located at 5353 and 5355 Oregon Ave N. and would enhance the existing neighborhood dramatically. The three car plan would highlight exterior features as follows: 3 car garage, hipped roof, covered front porch, board and batten accents, stone accents, and large windows. The interior would consist of 1900 finished square feet, 3 bedrooms, and 3 baths The two car garage plan would highlight exterior features as follows: 2 car garage, gabled roof, covered front porch, board and batten accents, stone accents, and large windows. Both homes would feature interior architectural elements as follows: 3bed, 3 bath, 1900 total finished square footage on 2 floors, gas fireplace with shiplap detail and rustic mantel, upgraded hard surface and carpet floors, granite/quartz tops, maple cabinets with painted finish, soft close doors and drawers, 3 car and 2 car garage, covered front porches, site finished enameled millwork, 2nd story laundry, and stainless steel appliances. We feel that both of these plans would be a great asset to the neighborhood. If Houston Homes is chosen as the best option for the lot, our intentions would be to start within a reasonable time after closing on the lots and anticipate a 120 day build time. Although final numbers are not completed, based on previous similar projects we anticipate the asking price of either home to be in the higher $300's Please feel free to contact us with any questions and thank you for your consideration of our proposals. Sincerely, Matt Houston, President Houston Homes, Inc. Matt Houston 6,12 PITCH N o(�t, 3&-jr 2ND LEVEL - 1115 60 FT ,w.d. MAIN LEVEL - 1-10 SQ FT 56L)T-�, 1-67 30.0- MAIN BEVEL - 1-10 50 FT 2ND LEVEL - 1115 SQ Ft ti W 241,2 i ST. RAPHAEL DRIVE 589°4M'W 153.55 s / / / / i i i My I lome Source (Alatus) MyHomeSource* Beautiful, Community, Partnerships. MyHomeSource and Alatus are proud to answer the RFP for two new single- family homes in New Hope. MyHomeSource LLC, an Alatus company, is devoted to development of single- family homes in the Twin Cities Metropolitan area through our network of private and public partnerships. Through MyHomeSource, we are dedicated to long-term neighborhood revitalization and stabilization by providing affordable and inspiring housing opportunities. To date, the company has built and sold over 90 new construction single-family homes and townhomes. This year we are finishing a 65-unit single-family home development in North Minneapolis where our sales price averaged $350,000. MyHomeSource has also purchased, renovated, and sold over 500 homes to owner -occupants in more than 60 cities in the 7- county metropolitan area. We offer turnkey ready homes with quality finishes that include stone countertops in kitchen and baths, under -mount stainless steel sinks, stainless steel appliances, tile backsplashes, and more. MyHomeSource contributes significantly to jobs created in the Twin Cities while enlisting the services of over 240 vendors, including general contractors, sub -contractors, and trades for work completed in the homes. The company plays a major role in stabilizing Twin Cities neighborhoods. Along with our construction partners, the company works closely with Realtors, Lenders, Asset Managers, Non -Profits, and Government Agencies to deliver exceptional residences. These lots are being offered at a minimum base price of $60,000 per lot/$120,000 total. The EDA will consider higher offers for the lot. However, submitting a higher offer will not guarantee the selection of a proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase the two lots for $ 120,000 ($120,000 minimum), and build two new single-family houses in accordance with the RFP guidelines. If a builder's proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Nail-ie: MyHomeSource Telephone:_ 763-639-5386 Address: 800 Nicollet Mall Suite 2850 Signatu re: Print Name and State License Number: BC696889 E-mail nrreimier@alatusllc.com City/State/Zip: Mpis, MN 55402 Date: 10/8/2019 Nick Reimler - Construction Manager Proposals are due by Wednesday, October 9, 2019, at noon Submit this proposal form and required attachments to: Jeff Alger Community Development Specialist, City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 763.531.5119 jalger@newhopemn.gov Proposals may be submitted by hand delivery, U.S. Mail, or email MyHomeSource* Beautiful: Community: Partnerships, Northern Lot FAM ON ma_ ! I Sales Informational Sheet ■ 2946 overall sq ft • 2249 finished sq ft • Unfinished basement with apprx 700 additional sq ft • 3 bedrooms, 3 bathrooms (2 full and 1 half) • Bonus office/TV room on upper level ■ Sale price $399,900 Southern Lot • 2265 overall and finished sq ft • Finished basement • 4 bedrooms, 4 bathrooms (3 full and 1 half) • Sale price $399,900 Notes: MyHomeSource will work with City to develop similar plans with 3-car garages if desired Plans may be slightly altered to fit onto lots ,I a I MyHome� u.1 Beautiful, Community, Partnerships, Informational Sheet a-WEV-80-21,10 DOORS 11.E 11DW ;k R E INTERIOR DOORS: Molded 2 Panel Carrara Hollow Core 4 _- DOOR HARDWARE: Dexier Seville Lever Satin Nickel or Oil Rubbed Bronze MOULDINGS - (MDF I PRIMED) BASEMDF230 -1 /2" x 4-1/4" CASMDF421 M - 314" x 3-1 W' LOWER LEVEL BASE LOWER LEVEL CASING BASEMDF230 -1 Z' x 4-114" CASMOF421 M - 314" x 3-1 /4" MAIN LEVEL BASE MAIN LEVEL CASING Flooring: ■ Main level to be hard surface — Mohawk Rustic Legacy laminate or Triumph LVT • Bedrooms to be carpet — Dreamweaver 35 oz • All bathrooms to be ceramic tile. Ceramic tile walls in master bathroom shower 0 Laundry rooms to be vinyl I I I ----------- -- -----_----_-•-------------------------------- 5T. RAPHAEL DRIVE S 89"45'25" E 153.55 Lots 1 and 2, Block 1, LAMMLE ADDITION ne_....-u ..��.�-. •. ,..., c._._.__ ww�errn• �.l.n, �_.-__ten, e.._... e___ a..._ aacaaoe am ROOF RDOF sm a wu ROOF 8 rz 9m RI?OF �— J4 (7 _ B. z 9 rZr�n1 ® � ❑ V O �00 L VINYL S. 11 VRR1 91DNG Q 12 ltJ ° 0, VINYL SIDNG 2 < o 0ULU=u IUp VINYL SIDING YQJYLBOW. m VINYL $IDW. = U 7 f era InOF • VINYL SIDING 4 SNAKES AS SNOIIN • TRIM AS SNOM • STONE VENEER As su10lwALLPI •'flRSOFFITS A FASCI9PECTJ. ®©Ill �� _ GENERIC wNau CALL -OUTS FRONT Eg VATION Y4'•r-v NOTE1 Y'•11r6' PLATE SIS SQFT. FIRST FLOOR FLEy L330 SQFf. SECOND FLOOR PM, FLOOR (TYPI . 14-023 2249 SQFf. TOTAL SWEET 69T SQF(. 891T. 2946 SOFT. TOTAL AREAS OF 6 xx_xrc J JZ Z� �o LO Q 9° a wE 0 0 mu 9 O 1 F m b =x UIr rT� a Ir W mck 6El b as 6 � 9 s a 3 tld t o nm-opera le piano Ind s to li. my enom. 26. 26' 0 N a � 4 Y a °Me 11 b-111, Fai r FILES i, +16�EI1 14-023 FIR5T FL OOR PLAN w-r.m• 915 awl. FN79T FLOOR f7'rT°J OF 6 a'.a' b'•0' '•10• T'-Ir 6'-�• C :' 5 0 OH Ir .�7q AmYE f3Jt 1B GH [27S Vt Lvl. Il I K70r4N-ATTIC 1•POF TIOtle®y � ^ �•y a�roc�' tp! I» __ i� I 4 w now � c � DINING � C*ARAraE rA4L18•TO it pE iflAi'EP rJlx4 BT1K79 fT7P7 � i � GAtz4GE L � {• coNc. BLAB _ - @•1911LATE TIYX 119DFi2 oiaee A1Z,~tA mli{i0 FG. BATT ►��+JLA7iCf� MRJQ^AlyJ l3JI{' LVL FUR .'CCHSR{1L715 TO GOR�R41 -{ — namem :�vron P f2J9 I/!' LVL — _ — IB'aIB' FR.df'IED COL" m!.'0' NK.N STONE BABE •.8 `b• m'0• '6• p_6• {• p•.b• {• w/STONE GAP (T7PJ { B•-2' Ir-10' 24-0. 22'-0' dQEMa xx-Xoor J JL5 z ?b'•0' Id'-0' 6'•0' f11 a V R N0f 0 5 �Wx uj 0 Iup u V 2' 3'-3' P•tl' S'-S' I I ;vx Did. /+11►d. I I WAD ++ u'' �. d•-m' III .'-0' a ,'-d. �f'y �']y F ri 9 t] A III III 14 !I sae �r +a.oe $I ., =. -- ---- - - - -- B SWAM w _ t� "T. � aa�m aa1 I ,� T75TR SUITE Y a� � Illl Illl I! 1 d1' Y 3'-e• rss ao�.� ax 1XF 5 5 � 5 4'•S' 3'-d' d3'-l' <'-9' d'-6' L3'-0' 4'-6' 8'-I' $'•9' I3'-d' 7}'.0' Id'•0• SECOND FLOOR W02 3 1330 9aF7. T OF 6 Fwvialo XX-XXX 0 Z� O N 07 f i 0 I �� I �Wi I Woo I rcx Ili U p Iw Io ILL U I I m •W-0'MK ! •3&,b. FTG. I ! I I i ® I I e I I e I I � I t I I -- m e ! ; s I I lo I I I s I i n I I ! ; Ya re lookout Indo L to I rAMDWR VENT 1 A I I Y s12 a a " o n C ALL FEhW CAI C . Tk" Fall FOINDA'MW AIRE BA$L'C 04 71M OUNDATION PLAN Na'•r•m' USE aF R" W Wa BLOCK w/ FILEh 2W .lOWS. IF FYMQ Alt BLOCK 14-E23 (�9l BQF'r,HNFIN6HE0 Bst'ir. hs UND, CONTRACTORS OFIOLLO T 1 Ek:*" ACCOWNWiLY_ :iV1EE7 2 OF 6 2m'-m' 26'-m' C 51ms3 9LD'R --'!'WIC � ----- t I I •LOCI[-C117 •2xE &iI.DS I I r, I •7m79' FTG. � b 4 2x4 8U14LL.°r. � RII Ff., BATi9 ! GYP. BD. (FMI9NED) -------- — -- — J FIREPOL7 (UFMI9FgD) �AFI.{ • I �IQ41118L.L � •2auB 87Ws I •16a6CONC.� fir.Kifl I I I I • �, b• BLK I r 4 s• e••2' I I I I •20•.A' LTG- ! I t I I _ _ �E�I�OM y �� Y 1 I I • k:. - NOTEW PROVIDE ETE:fYaY FEEL • ALL ROOF TRUSSES (TYPJ • T` I I I ATH PROVIDE R30(MMJ FIa, 16' PLR TRIXtE5 BATT INSULATION • • H2. OL. FLOOR SPADE ABOVE NOTES RaOP ... - GARAGE UlALLS TO NOIEW ROOF VENTS AS REQ•D. FRlJ'ED .-nG FTC' VIDE ENERGY 30 YR ARCNRECTURAL SNMGLES Slwr. (TYPJ FEEL •ALL ROOF ICE A WATERSNIELD MISSES (TYPJ 5- FELT _TN'G. SLAB S O. ■ 24, _ U' 1/!' OSB SS{ AIR CFAITES EA TRUSS FILLA' AAS 1E:dP- A4U'%w FASCIA AL LTI M '! SOFFITS CR065 SECTION 'A' V4'•p m' 5Lo3N M I 1/2' GYPDD. WNB. • W 5 MASTER SUITE ATH PROVIDE R30(MW Ft. W- PLR TF MATT INSULATION • • HY O.C. BOOR SPACE ABOVE NOTEUI GARA/f UUUlS TO �F � aiA16 A' COW- SLAB CR055 SECTION ' 11/4'0-0' 50, GYP. W. WWNm • CLG. V2' GTPBD. mNB. • UALLS ATN STAIR M0OR Ed HA T. 10' TEADS4' NOSING IxeRSE • PST O G. '.�G I R 1l 3/4'T+G TT • 192' or_ R^. F1-Ai-ATT1G ROOF TRUSSES • 24' OC. gg 3/4'TKa VINYL SIDMG/SNAKES 1/I6' OSB SNTN'G. 2x6 STUDS • IS. O/C 19I5 #fl BAST IN''su VAPOR BARRIER 1/2 GYP. BD. R0 MIN. SPRAYED FOAM RAN INSULATION 1/I6' 05B SNTNYa. 2x6 STUDS • 16' O/C RAD Ff. BATE M LL- VAPOR BARRIER V2 GYP. BD. U m III R10 MR SPRAYED FOAM RAN INSULATION W FLR TW55FS • 192' O C. ORIILAR TO ABOVE e o'! AMIL'""'�P m 2x6 TRTV PLATE FM SILL GASKET MIC 4OR BOLTS IM 6'0 O/o(TYP) 3 V2' 6 MIL, MY DRAIN n FILL AS REo'D. TILE FILE.. KaFIr CALCULATIONS FOR i p� �t CROSS SECTION 'C' V4'.!'_®' ATIONS ARE BASED ON TFE FULL 6' NIGN BLOCK av LADMI 14-023 sN�T INTS. IF MODULAR BLOCK D. cONTRACTOR9 sNola.D NEUGI•T6 ACCOFDMLY. OF zwz�;n oT.V. 3/4'TrG WO11-IN-ATTIC ROOF TRUSSES • 24' O.C. NATH ITGN �a �, 9/a-TK. IS, FLR 1ZU55E5 • 192' OL. AMj A� 3 V2' oDR" 6 MIL. POLY TILE FILL AS REjaD. CRO55 SECTION 'D' U4''I w ATH II ATH I I W.I.G. BAIT INSULATION • • i93.0r- FLOOR SPACE ABOVE GARAGE WA.- Ta T ca('>ED 9TiID8 (TTT�J CRO55 SECTIONDRA TILE TILE �v ALL FEY�FfT G61.CkILAF1L1/9 FOR FO[>f'AATIONS A» B! °r CTi T� I USE OF pp 1 B' NIGH BLOCK W/ 50 JOINT$. IF MCOULAR BLOM IS USED. CANTICACTaR9 SHOULD gp,AIST H ACCORDINGLY. RADON REQUIREMENTS 4' CLEAN SAID FILL BELOW BASBIENT SLAB 6 MIL POLY OR EQUAL BE UEEEN SAD FILL AND CONC. SLAB CAULK ALL FLOOR OR WALL OPENINGS AND JOINTS PROVIDE MIN. 3' ABS OR PVC PIPE VERTICALLY INTO SUB -SLAB FILL VERTICAL PIPE SHALL BE CONNECTED TO A T FITTING WITH ONE I& SECTION OF PERFORATED PIPE • EITHER SIDE OF T'. VERTICAL PIPE CAN ALSO BE INSERTED INTO INTERIOR PROg ETER DRAIN TILE LOOP. VERTICAL PIPE SHALL RN UP THRC) H BUILDING FLOORS AND TERMINATE 12' ABOVE 1070E A MINIMUM OF I& FROM ANY OPENING TO CONDITIONED SPACE. VENT PIPE SHALL BE INSTALLED TO PROVIDE POSITIVE DRAINAGE BELOW SLAB. RADON VENT PIPES 914ALL PROVIDE SPACE FOR FUTURE MSTALLAT04 OF A FAN SYSTEM. MINIMUM SIZE, 24' DIAMETER x 36' VERTICAL PROVIDE ELECTRICAL POWER SOURCE TO AN APPROVED BOX AT FUTURE LOCATION OF VENT FAN RADON VENT PIPES SHALL BE LABELED AT EACH FLOOR AND AT ATTIC AS SUCH: 'RADON REDUCTION SYSTEM'. Rl]Bi ROOF TRUSS 5/8' GYP. BD. WY.5. • CLG. V2' GTPBD. WNB. • IU4LL8 H TILE k "� ENERSYLL ROOF(TYPJ ROOF TRUSSES • 24' OL. R" I6' FLR TRUSSES • ISY OL. ow r&viSIlCI, . )«-X« dd t' 'o IN IBDOF VG ROOF ROL'F YEN* AS PF"D TA2 ROOF MO -Opera to piano V p U rind s to master BR. p5 26' TAY Panix �T T� O N�F 0 �—Ld z, 61 �wi woo VWLSN*n vwM BIDW. ® YKri SUPIM o O =x U� RIGHT ELEVATION vr-is, EFT EL7'0 ve•r m REAR ELEVAT]L)N - -� dd t o nor -opera le piano ind s to edrooms 2 and 3, 26" 26" tldnon-ora Ie piano ind s to li Ing 2T 26' i :10, • VML BIDING 1 B11NM AS BFILLN • TM AS SHOM • STONE VENWR AB BNOM • AlJ MM" SOFFTB 4 FASCIA • CBEIeIC tlIWOIU CALL -OUTS BF'EC'D. IIIj'�Ijj III�j L Ell LJ �J — ©©LIEU©©© - a©©©©E©© . FRONT ELEVATION v+'•r 696 SQFT. FIRST FLOOR FLEA M SOFT. WOOD FLOOR G-~ on ea". TOTAL 04M 1 )Oc-)OOC J JZ Z� �o �cbf W ZJ 17 Qya W� �p0 0 IGm M'•e' zr•e' INV 13'-D' () u 9'-b' 9'-4' i'•3 i'•4' �y�_1 W Ceiling height on main to be 9' 4 D P DR 77kc3 Dx 42" uppers r2r5 vi' LVL Provide option for mud room bench ILO of closet ,.• MOM ' Add option for pantry at end of cabinets by dining JIL4KITCHEN 0 I � � � DIN a•-oi••a• GARnGE tlk4LL8 �❑ . _-- RCSf YPj x'•�' 4'-4' -i• 4' C7rA r �swn N&L.ATE TWX ILAER NINE AREA ~ Fr. BAIT a T NEiY.ANA MM91" S 9 ewAco li'0ul'O Ox DR. i f_IYiNCs t�C?OP1 r Roar 4+ I� I W V4' LVL OW LVL RM RIM BEAM ]••Y i' f T 46"SEGTM� WWI -Q71 T LL1� LJ Ldl L1J -- 4'•B' .0 W C.AW. MOVE R 3 6 1m D-k sr ae 71ixS Dx " W-i 3-W 616 POET COMNIIOM TOM _ d QkQ'FRN'ED COLN DECO. FNSN (VERY) FtOrEE-�1 D, 3-W 2.xr, 03�W1BEA�88 � NpTED 011ERWE � „� 74• -V 27'-6!" FIRST FLOOR PLAN w'• -o FILE^. n OW BFEEf 638 SOFT. NMM CIOEW 6RCM CA-L-OUTS SPECD VERIFY ALL DOOR AN, 3 w�wauN OPMINW VEW, 5 REV16>N. a«->= J JZ Z� �o Nis 0 WzJ LD �I ;z w" WO. Master Bathroom: 22 m 48"x36" shower pan with tiled walls ILO tub = W Widen vanity to 60" and add another sink and faucet �6' b _ m'-e• 5'-b I/1' 5'-7 V!' Y'-b' ma' 5'-� Ut• 5'-� V7' e'-�• 9'-O' 9'•9' 9'•]' v'-Y 9'•11' �< � ait � m e 0 COND FLOOR PLAN ve-r-v Ire9 eo>:r. ME! 19-050 SHEET NOIEW GENERIC 04XW CALL -OUTS SFEO9. VERIFY ALL DOOR Alm � OW OPOW436, VER OF5 b'•9' stola'm � so 9'mx5 DH S Pk •�Wl yp7 © ew_nro e�L�s iaS � ppp x r-Y s I �' �• lr•r - -- �----------;,;,;,;;-`- y rs eu.Ta�o 'iD' 8'-P SA'-3' ��-11'•7' a �, ' � LAUt•L � � �r GIRDER ROOF TRW G�I®ER ROOF T>aleb _ ----���-- S'g: ' �i � S1C9d DH a� Dx s'o,.s vH 5'-O' 5'-C" 9'•S' $'•i@' 4'-b' 4'•b' b'•b' b'-b' �7'•d' tp'-i0• 1i'-0' J JZ Z� w�� �Na w� woo 4i'-®• � � c 14'•3' 6'-0' 3'-9' I � m BLOCK UDYL � WELL U m 2 A00 o 7 4• 1' T'� m 74••sb' ALL NEK4NT CALCILATKO%. FOR ARE BASED ON THE (FOUSIDATIM6 OF FULL V HIM BLOCK of FOUNDATION PLAN 14'•Y-p' 33j8*JONMFMMODULARBLOCK BOO OHM Is USED. C 2frRACTOI+B SHOULD Ga" F N* ED 5" T NfB5W% ACCORDWSLT. 2 I I I I I I .�p.� I I •�e•BLK I I I � 107�' FTG. I •4� 8' BLIC I I I • fr.ya' FTCi GW.LBo- � I?x 4 STUDS4 � • IA •' eYAc • � � I ~ 3 I I [ � f Fm Ff. 6ATT6 GTF. 9G. M1�fI'a1�D7 t3LK •7O5oa':Td. I I I I I I FU:EPOLT ftfFF?IbFED1 } I I j rawc •1xb SrIDB I I I 4 r----- I •�NALF •� �w. er. •16>� Cd1G l�C I - im ROOF a� � ATH AUN. AST SUI 16 F 4'-2' I 3/4,rAG 3/4'TAG TILE BATT INBILATION • • m, OG (2)T V4' LVL FLOOR SPACE ABOVE FUUBM BEAM ,NOTE} GA1tAGE WALLS TO (2P V4' LVL FLUN!" BEAN TUR4 STUDS FLAT • STAIRWELL, INSULATE W 1 VY FOAM BD. NSIL b MIL POLY DAA FILL AS REO'D. TILE Rosa 5'`crioN V4•.,.� RADON REQUIREMENTS 4' CLEAN BAND FILL BELOW BASEMENT BLAB 6 MIL POLY OR EQ IAL BETWEEN BAND FILL AND GONG. BLAB • CAULK ALL FLOOR OR WALL OPENINGS AND JOINTS PROVIDE MIN. 3' ADS OR PVC PIPE VERTICALLY INTO BI8-BLAB FILL VERTICAL PIPE SHALL BE CONNECTED TO A 'T' FITTING WTH ONE IS' SECTION OF PERFORATED PIPE • EITHER BIDE OF T. VERTICAL PIPE CAN ALSO BE INSERTED INTO INTERIOR PEFRETER DRAIN TILE LOOP. VERTICAL PIPE SMALL RIN IF THROUGH BUILDING FLOORS AND TERMINATE Q' ABOVE ROOF A MIN"JM OF W' FROM ANY OPENING TO CONDITIONED SPACE. VENT PIPE SMALL BE INSTALLED TO PROVIDE POSITIVE DRAINAGE BELOW BLAB. RADON VENT PIPES SMALL PROVIDE SPACE FOR FUTURE INSTALLATION OF A FAN SYSTEK MINRIUM 6I2E, 24' DIAFETER x 36' VERTICAL PROVIDE E-ECTRCAL POKER SOURCE TO AN APPROVED BOX AT FUTURE LOCATION OF VENT FAN • RADON VENT PIPES SHALL BE LABELED AT EACH FLOOR AND AT ATTIC AS SUCR: RADON REDUCTION SYSTE r. NOTEN PROVIDE ETEIGY _ HEEL • ALL ROOF TRUSSES (TYPJ ROOF 7ISisB4df Q ROOF VENTS AS I s=. 30 YR. ARCNIIECTiRAL &-0NGS ES �T ICE 2 WATERSNIELD IS• FELT PAPER WI OBB 6NTMYs AIR CHUTES EA, TRW 024' Pw BLOWN GIRDER: ROOF TRlSB - B/B' GYP. BD. m/VD. • VJ' GYP. BD. W VD. • WALL 4 STAKe INFO c (3U2xI2 STRINGERS 10'TIEAD8^106ING bcD RSEFTS 3J47Ks 16' RR TRUSSES • F!2' OL. 16, RR TRIBBES • BY OL. BA5Eh9ENT r RIRIED 1114L.1 S= S b 2)C4 STUDS i! RI Ffi MATTE FWLEPOLY ""'" 3 VT BLAB 6 MIL FDL7 DR4W ML AS ME= TILE R056 SEV4'.I'-®' ALUMINUM FASCIA ALUMW4ll SOFFITS 16' VINYL BDING/BFI420, WOUBEQPAP T/16' 065 BNTMYa 2xb SIDS • 16' O/C RIB FA BATT INSFL VAPOR BARRIER W GYP. BD. RW Rim MNBLLATIONYED FONT TA:' OSB BF1TNYx 2x6 STUDS • 16' 01G RIB Ff. BATT INSIL. VAPOR BARKER W GYP. BD. RIO MIN. SFRAYED FOAM RM NBILATION ----^rb TRT'D PLATE OLL GASKET ANGFIOR BOLTS 6'O O"TYPJ U m SWEET OF 5 Novak Fleck These lots are being offered at a minimum base price of $60,000 per lot/$120,000 total. The EDA will consider higher offers for the lot. However, submitting a higher offer will not guarantee the selection of a proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase the two lots for $_ 1 2-6 . C) 0 b �. ($120,000 minimum), and build two new single-family houses in accordance with the RFP guidelines. If a builder's proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name:_EC�� T�-K\C • State License Numbe '_ RD Telephone:0 3 L� Q 5 rJ E-mail CI[3 n��Q ftl ti►7U— C= L�W� I.0 �, Address: - Y f, CID City/State/Zip _�rM15-1yn P �- Signatu Print Name and Ti tlecZe,111(f) V 6 n n s 6 r7- Proposals are due by Wednesday, October 9, 2019, at noon Submit this proposal form and required attachments to: Jeff Alger Community Development Specialist, City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 763.531.5119 jalger@newhopemn.gov Proposals may be submitted by hand delivery, U.S. Mail, or email Date: I o / z 2 bg — Li LJ L Ashley base price lot $63,000.00 Permit $4,775.00 AC 4 LED lights in kitchen Upgraded Handrail 1 additional pendant over island (2 total) 42 inch uppers Garage Door Opener Allowance flooring $1250 total lighting allowance landscape/irrigation allowance additional appliance allowance 1500 Insulated/Sheetrock garage 2 Stone Pillars Finished lower level (30.00 per sq ft + 3000) window wrap on front 5" shower in master w/seat Upgrade exterior gutters TOTAL $304,870.00 10/7/2019 9:49 AM C:\Users\dflan\Desktop\ 1 of 2 6-Rl�-Pry C)RE6:0&1 AVE 'tD 1 f 46 l o i,—::- l.--p I L-1N�t --- , . CFT- 4 t oOT H+ M,�s Novak -Fleck Inc. 8857 Zealand Ave N. Brooklyn Park MN 55445 PRICED AT 304,870 EACH Proposal Specifications 5353 & 5355 Oregon Avenue N. New Hope 4 Bedroom, 3 Bath Main Level 765 finished square feet Upper Level 630 finished square feet Basement Level 533 finished square feet Total Finished Square feet 1929 Specifications and plans to be built All work and materials to meet applicable building codes Structural 1. Concrete wall foundations 2. Eight -foot -tall ceilings on the main floor 3. Eight -foot -tall ceilings on the upper level 4. Eight -foot ceilings on the basement and bedroom areas 5. Watchdog waterproofing system with 2" exterior foundation insulation 6. Drain the with radon vented and sump pump 7. 2 x 6 framed exterior walls 8. 2 x 4 framed exterior garage walls 9. Roof trusses and floor trusses 10. % OSB exterior wall sheathing 11. % tongue and groove OSB sub floor 12. Upgraded architectural roof shingles 13. Fiberglass insulation in framed exterior house walls and attic 14. Closed cell spray foam rims 15. Foam exterior foundation walls 16. Exterior house wraps Lo-E Vinylite vinyl windows 17. Lo-E Vinylite vinyl windows 18. Lo-E Vinylite patio door 19. Vinyl siding 20. Gutters 21. Aluminum Soffit, fascia 22. LP tri boards on the front per plan 23. 16'x8' and a 9'x8' raised panel steel overhead garage door 24. Exterior stone per plan Floor Coverings 1. Luxury Vinyl Plank flooring in the kitchen and dining rooms 2. Ceramic tile floors in upper level and main bathrooms 3. Upgraded carpet in the balance of the bedrooms, stairs, family room and living room Plumbing 1. Stainless steel sink 2. Bath fixtures to be white 3. Brushed nickel faucets 4. Fiberglass tub shower surround in the main level bath 5. Fiberglass shower w/seat in master bath 6. Fiberglass shower unit in the basement 7. 50 gallon electric water heater 8. 1 basement floor drain 9. Two exterior water taps 10. Water supply box for the kitchen refrigerator 11. Irrigation system Heating 1. 90%+ efficient direct vent furnace or equal 2. Central air conditioning 3. Air exchanger 4. Installed ducting for dryer venting to the outside 5. Vented in baths Electric 1. 150 Amp electric service 2. Smoke detectors, CO2 per code 3. Wire house to code, Outlet spacing to code 4. Two exterior outlets 5. Sealed outlet boxes for exterior electrical 6. Low voltage package allowance 7. 4 LED lights (similar to recessed cans) 8. Ceiling Fan in the master bedroom suite 9. Garage Door opener w/remotes & Keypad Appliance 1. Appliance package includes stainless steel refrigerator, microwave, dishwasher and electric stove. A laundry room washer and dryer package are also included. Cabinets, Countertops, Doors and Trim 1. Upgraded 42" uppers with large crown molding and poplar shaker style cabinets 2. Cultured marble vanity tops in bathrooms 3. Stained poplar 1x4 headers and sills casing 4. Stained 3 %" poplar base 5. 3 panel painted interior doors 6. Brushed nickel hinges and hardware 7. Brushed nickel levered door knobs 8. Granite or quartz included in kitchen Allowances 1. Appliance allowance (kitchen package plus washer and dryer) $4,100 2. Lighting allowance $1,700 3. Flooring allowance (luxury vinyl plank flooring kitchen/dining/baths $5,000 4. Landscaping/Irrigation allowance $8,000 5. Gutter allowance $1,800 Miscellaneous 1. Paint includes entire home with two layers of Essential Grey, Sherwin Williams flat paint, ceilings painted white 2. Generous $8,000 landscaping allowance to include mulch and edging around the house, sod on front sides and back as required by the city, irrigation, two rear yard trees and two front yard trees. Upgrades are on the attached breakdown and include the following: 1. Upgraded faucets in kitchen and baths 2. LED lighting adding in kitchen 3. Upgrade to knockdown ceilings 4. Standard 3 car garage 5. Ceiling fan in master bedroom 6. Luxury Vinyl Plank flooring in kitchen and dining room ($5,000 allowance) 7. Finished staircase and completely finished lower level 8. Upgraded kitchen cabinetry with large crown molding and 42" upper shaker style cabinets 9. Upgraded stone exterior with additional stone pillars at the entrance 10. Generous allowances for flooring, lighting, appliances, and landscaping PACKAGE PRICE: 304,870 FOR EACH HOME ONE Monson mom Non IINIIIIIIIIII�I� pIVIIIIhINIRIRNW�IgtlII rVP 11 KIZ YVINDOW H2R. 5lZE5 e��cr P-3'n 2-23dO FDR& , tiw• auY bb'r 1-1 8/4" In' TIMMM"TRAND n a• La• s c+- o- d(gX0 2-1 5/4x11 9/O' TIM UMTRAND b ry-a� 4 ttw ll4Ldl� NCTW c"Now °j 1----- --- - --- ----aw o--------Z E 1 �''�,, MO ncra. MT. . I K cewr~ eras a em Y RX I ! r I� YA• ewe, PM i 2+6• 1- ! ac.e. Y IrInL l fiUpt OOF 2' T I� Ac ii u rn�� 4LWatir , iRi� ��� 3 I err��rr� � I r— ! ! 1 a f s � l y<AM��.r I I , I rarerxr i l [ I [ I I E +eir,�r w sc m no= mQ ro f r- I �I E 1 lax v rM. 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I 4�[• b-o our 410'I I ! E I I I �Si• C7u71F � I _s I s-cws a• ax rrs. I air I ! ■+fir { I I I I I I [ j+ew► r m FEaAR rm Mac ditxm Wt,` raNc. LF ADOM WW oi- PMcr rn 4ties}i• six ! I i� ? !LlI I I r I I jo w ....,._...-- --------------- -- le�•E' sue. I• F — �n� 1 ►yo'r ���-�{{ LOWER LEM & FDUNDATI PLAN R16i Am NCR. Y VNlC. a a U —7 / A LL r- I iq - -% --'9 Budget for 5355 Oregon Avenue North EXPENSES AMOUNT Acquisition (including closing costs) $ (172,071.79) Demolition and site prep $ (11,424.20) Demolition survey $ (650.00) Engineering (purchase, lot split, moving utilities) $ (11,270.50) Lawn services $ (2,200.00) Legal (purchase, lot split, moving utilities) $ (6,395.15) Moving utilities $ (32,387.59) Park dedication fee $ (3,000.00) Planning (lot split) $ (1,385.25) Public hearing notice $ (154.70) Real estate taxes $ (3,813.56) Sewer and water connections $ (6,560.00) Utility billing $ (211.81) Closing costs for sale (estimated) $ (1,500.00) Engineering costs for moving utilities (estimated) $ (5,500.00) Future utility billing (estimated) $ (30.00) Legal costs for sale (estimated) $ (1,000.00) TOTAL $ (259,554.55) REVENUE AMOUNT Lot sale proceeds $ 130,000.00 TOTAL $ 130,000.00 TOTAL COST/REVENUE $ (129,554.55) Estimated Tax Impact of Improvements at 5355 Oregon Avenue North Estimated Market Value 2018, Payable 2019 Projected Estimated Market Value 2020, Payable 2021 Change Percent Change $171,000 $700,000 $529,000 309.36% Taxable Market Value 2018, Payable 2019 Projected Taxable Value 2020, Payable 2021 1$688,520 (Change Percent Change $149,150 J$539,370 361.63% Net Taxes 2018, Payable 2019 Projected Net Taxes 2020, Payable 2021 Change Percent Change $2,674.04 $12,140.44 $9,466 354.01% Taxes Allocated to City 2018, Payable 2019 Projected Taxes Allocated to City 2020, Payable 2022 Change Percent Change $993.63 $4,585.92 $3,592 361.53% Projected Project Expenses ($259,554.55) Lot Sale Revenue $130,000 Total Cost/Revenue ($129,554.55) # of Years (Year) Additional Taxes Collected By City Total Cost/Revenue Return On Investment 0 (present) $0 ($129,554.55) -49.91% 1(2021) $3,592.29 ($125,962.26) -48.53% 2 (2022) $7,184.58 ($122,369.97) -47.15% 3 (2023) $10,776.87 ($118,777.68) -45.76% 4 (2024) $14,369.16 ($115,185.39) -44.38% 5 (2025) $17,961.45 ($111,593.10) -42.99% 10 (2030) $35,922.90 ($93,631.65) -36.07% 15 (2035) $53,884.35 1($75,670.20) -29.15% 20 (2040) $71,845.80 1($57,708.75) -22.23% 25 (2045) $89,807.25 1($39,747.30) -15.31% 30 (2050) 1$107,768.70 ($21,785.85) 1$3,360.18 -8.39% 37 (2062) 1,;132,914.73 11.29% 'Based on 2 new homes valued at $350,000 each (2019 payable formula) Estimated Return on Investment for 5355 Oregon Avenue North Description Amount Investment $ (259,554.55) Return, Year 1 $ 3,592.29 Return, Year 2 $ 3,592.29 Return, Year 3 $ 3,592.29 Return, Year 4 $ 3,592.29 Return, Year 5 $ 3,592.29 Return, Year 6 $ 3,592.29 Return, Year 7 $ 3,592.29 Return, Year 8 $ 3,592.29 Return, Year 9 $ 3,592.29 Return, Year 10 $ 3,592.29 Return, Year 11 $ 3,592.29 Return, Year 12 $ 3,592.29 Return, Year 13 $ 3,592.29 Return, Year 14 $ 3,592.29 Return, Year 15 $ 3,592.29 Return, Year 16 $ 3,592.29 Return, Year 17 $ 3,592.29 Return, Year 18 $ 3,592.29 Return, Year 19 $ 3,592.29 Return, Year 20 $ 3,592.29 Return, Year 21 $ 3,592.29 Return, Year 22 $ 3,592.29 Return, Year 23 $ 3,592.29 Return, Year 24 $ 3,592.29 Return, Year 25 $ 3,592.29 Return, Year 26 $ 3,592.29 Return, Year 27 $ 3,592.29 Return, Year 28 $ 3,592.29 Return, Year 29 $ 3,592.29 Return, Year 30 $ 3,592.29 Total Returns $ 107,768.70 Investment Cost $ 259,554.55 Selling Price $ 130,000.00 Return on Investment -8.39% Estimated Internal Rate of Return for 5355 Oregon Avenue North Description Amount Investment $ (129,554.55) Return, Year 1 $ 3,592.29 Return, Year 2 $ 3,592.29 Return, Year 3 $ 3,592.29 Return, Year 4 $ 3,592.29 Return, Year 5 $ 3,592.29 Return, Year 6 $ 3,592.29 Return, Year 7 $ 3,592.29 Return, Year 8 $ 3,592.29 Return, Year 9 $ 3,592.29 Return, Year 10 $ 3,592.29 Return, Year 11 $ 3,592.29 Return, Year 12 $ 3,592.29 Return, Year 13 $ 3,592.29 Return, Year 14 $ 3,592.29 Return, Year 15 $ 3,592.29 Return, Year 16 $ 3,592.29 Return, Year 17 $ 3,592.29 Return, Year 18 $ 3,592.29 Return, Year 19 $ 3,592.29 Return, Year 20 $ 3,592.29 Return, Year 21 $ 3,592.29 Return, Year 22 $ 3,592.29 Return, Year 23 $ 3,592.29 Return, Year 24 $ 3,592.29 Return, Year 25 $ 3,592.29 Return, Year 26 $ 3,592.29 Return, Year 27 $ 3,592.29 Return, Year 28 $ 3,592.29 Return, Year 29 $ 3,592.29 Return, Year 30 $ 3,592.29 Total Returns $ 107,768.70 Internal Rate of Return -1.15% Budget for 5355 Oregon Avenue North EXPENSES AMOUNT Acquisition (including closing costs) $ (172,071.79) Demolition and site prep $ (11,424.20) Demolition survey $ (650.00) Engineering (purchase, lot split, moving utilities) $ (11,270.50) Lawn services $ (2,200.00) Legal (purchase, lot split, moving utilities) $ (6,395.15) Moving utilities $ (32,387.59) Park dedication fee $ (3,000.00) Planning (lot split) $ (1,385.25) Public hearing notice $ (154.70) Real estate taxes $ (3,813.56) Sewer and water connections $ (6,560.00) Utility billing $ (211.81) Closing costs for sale (estimated) $ (1,500.00) Engineering costs for moving utilities (estimated) $ (5,500.00) Future utility billing (estimated) $ (30.00) Legal costs for sale (estimated) $ (1,000.00) TOTAL $ (259,554.55) REVENUE AMOUNT Lot sale proceeds $ 130,000.00 TOTAL $ 130,000.00 TOTAL COST/REVENUE $ (129,554.55) Estimated Tax Impact of Improvements at 5355 Oregon Avenue North Estimated Market Value 2018, Payable 2019 Projected Estimated Market Value 2020, Payable 2021 Change Percent Change $171,000 $700,000 $529,000 309.36% Taxable Market Value 2018, Payable 2019 Projected Taxable Value 2020, Payable 2021 Change Percent Change $149,150 $688,520 $539,370 361.63% Net Taxes 2018, Payable 2019 Projected Net Taxes 2020, Payable 2021 Change Percent Change $2,674.04 $12,140.44 $9,466 354.01% Taxes Allocated to City 2018, Payable 2019 Projected Taxes Allocated to City 2020, Payable 2021 Change Percent Change $993.63 $4,585.92 $3,592 361.53% Projected Project Expenses ($259,554.55) Lot Sale Revenue $130,000 Total Cost/Revenue ($129,554.55) # of Years (Year) .Additional Taxes Collected By City Total Cost/ Revenue Return On Investment 0 (present) $0 ($129,554.55) -49.91% 1 (2021) $3,592.29 ($125,962.26) -48.53% 2 (2022) $7,184.58 ($122,369.97) -47.15% 3 (2023) $10,776.87 ($118,777.68) -45.76% 4 (2024) $14,369.16 ($115,185.39) -44.38% 5 (2025) $17,961.45 ($111,593.10) -42.99% 10 (2030) $35,922.90 ($93,631.65) -36.07% 15 (2035) $53,884.35 ($75,670.20) -29.15% 20 (2040) $71,845.80 ($57,708.75) -22.23% 25 (2045) $89,807.25 ($39,747.30) -15.31% 30 (2050) 1$107,768.70 ($21,785.85) -8.39% 37 (2062) 1$132,914.73 J$3,360.18 11.29% *Based on 2 new homes valued at $350,000 each (2019 payable formula) Estimated Return on Investment for 5355 Oregon Avenue North Description Amount Investment $ (259,554.55) Return, Year 1 $ 3,592.29 Return, Year 2 $ 3,592.29 Return, Year 3 $ 3,592.29 Return, Year 4 $ 3,592.29 Return, Year 5 $ 3,592.29 Return, Year 6 $ 3,592.29 Return, Year 7 $ 3,592.29 Return, Year 8 $ 3,592.29 Return, Year 9 $ 3,592.29 Return, Year 10 $ 3,592.29 Return, Year 11 $ 3,592.29 Return, Year 12 $ 3,592.29 Return, Year 13 $ 3,592.29 Return, Year 14 $ 3,592.29 Return, Year 15 $ 3,592.29 Return, Year 16 $ 3,592.29 Return, Year 17 $ 3,592.29 Return, Year 18 $ 3,592.29 Return, Year 19 $ 3,592.29 Return, Year 20 $ 3,592.29 Return, Year 21 $ 3,592.29 Return, Year 22 $ 3,592.29 Return, Year 23 $ 3,592.29 Return, Year 24 $ 3,592.29 Return, Year 25 $ 3,592.29 Return, Year 26 $ 3,592.29 Return, Year 27 $ 3,592.29 Return, Year 28 $ 3,592.29 Return, Year 29 $ 3,592.29 Return, Year 30 $ 3,592.29 Total Returns $ 107,768.70 Investment Cost $ 259,554.55 Selling Price $ 130,000.00 Return on Investment -8.39% Estimated Internal Rate of Return for 5355 Oregon Avenue North Description Amount Investment $ (129,554.55) Return, Year 1 $ 3,592.29 Return, Year 2 $ 3,592.29 Return, Year 3 $ 3,592.29 Return, Year 4 $ 3,592.29 Return, Year 5 $ 3,592.29 Return, Year 6 $ 3,592.29 Return, Year 7 $ 3,592.29 Return, Year 8 $ 3,592.29 Return, Year 9 $ 3,592.29 Return, Year 10 $ 3,592.29 Return, Year 11 $ 3,592.29 Return, Year 12 $ 3,592.29 Return, Year 13 $ 3,592.29 Return, Year 14 $ 3,592.29 Return, Year 15 $ 3,592.29 Return, Year 16 $ 3,592.29 Return, Year 17 $ 3,592.29 Return, Year 18 $ 3,592.29 Return, Year 19 $ 3,592.29 Return, Year 20 $ 3,592.29 Return, Year 21 $ 3,592.29 Return, Year 22 $ 3,592.29 Return, Year 23 $ 3,592.29 Return, Year 24 $ 3,592.29 Return, Year 25 $ 3,592.29 Return, Year 26 $ 3,592.29 Return, Year 27 $ 3,592.29 Return, Year 28 $ 3,592.29 Return, Year 29 $ 3,592.29 Return, Year 30 $ 3,592.29 Total Returns $ 107,768.70 Internal Rate of Return -1.15% Request for Action November 13, 2018 Approved by: Kirk McDonald, City Manager Originating Department: Community Development By: Aaron Chirpich, CD Specialist Agenda Section EDA Item Number 4 Agenda Title Resolution approving contract with Leadens Excavating, Inc. for demolition of site improvements, tree removal, and site grading of 5355 Oregon Avenue North (improvement project no. 1018). Requested Action Staff requests approval of a resolution awarding a contract for demolition of all site improvements, tree removal, and site grading for the property located at 5355 Oregon Avenue North, to the lowest responsible bidder, Leadens Excavating, Inc. in the amount of $8,275. Policy/Past Practice When public bidding is required as part of the Scattered Site Housing Program, it is practice of staff to present contracts to the Economic Development Authority (EDA) for consideration. Background The EDA has recently acquired the single-family home located at 5355 Oregon Avenue North as part of the Scattered Site Housing Program. The EDA has directed staff to take the necessary steps in preparing the home for demolition in order to facilitate redevelopment of the property. This contract award includes demolition of all site improvements, tree removal, and limited site grading. Requests for quotes were sent to five contractors. Staff received three bids and the results are as follows: • Nitti Rolloff Services, Inc. $11,975 • Leadens Excavating, Inc. $8,275 • All Metro Excavating, Inc. $7,450 Although All Metro Excavating has submitted the lowest bid for this project, staff recommends awarding the contract to Leadens Excavating. The EDA has not worked with All Metro Excavating in the past, and staff does not consider All Metro Excavating to be a responsible bidder, as their Better Business Bureau (BBB) accreditation has recently been revoked, and the company has a rating of C+ by the BBB. All Metro Excavating also has a history of missing bid deadlines for past EDA demolition projects. For these reasons, staff believes it is not prudent to consider All Metro Excavating for this project and subsequent contract award. Funding EDA funds will be used to pay for this contract award. Experience with Recommended Contractor The EDA has worked with the recommended contractor on two previous scattered site housing projects. Leadens Excavating, Inc. was the selected contractor for demolition and site grading work at 6065 Louisiana I:\RFA\COMMDEV\2018\EDA\11-13-18\5355 Oregon \Q&R Award Demolition Contract for 5355 Oregon Avenue 11-13-18.docx Request for Action, Page 2 Avenue, and 4511 Boone Avenue. Staff had a good experience working with the contractor, and has no concerns with hiring them for this project. Attachments • Resolution • Bids Received • BBB Summary of All Metro Excavating Violations ■ RFQ and Bid Specifications EDA RESOLUTION NO. 18- 20 RESOLUTION APPROVING CONTRACT WITH LEADENS EXCAVATING, INC. FOR DEMOLITION OF SITE IMPROVEMENTS, TREE REMOVAL, AND SITE GRADING OF 5355 OREGON AVENUE NORTH (IMPROVEMENT PROJECT NO.1018) BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, the Economic Development Authority in and for the City of New Hope ("EDA") purchased that certain real property located at 5355 Oregon Avenue North, New Hope, MN (the "Property") with the intentions of redeveloping the Property; and WHEREAS, City staff intends to redevelop the Property in accordance with the City's scattered site housing program and policy and return the Property to the tax rolls for the benefit of all taxing jurisdictions; and WHEREAS, City staff is exercising due diligence to correct the Property's blighted condition by performing an environmental cleanup of the Property to be followed by the demolition of all buildings on the Property, tree removal, and site grading of the Property; and WHEREAS, Leadens Excavating, Inc. submitted a proposal for demolition of site improvements, tree removal, and site grading ("Work") that meets all of the Project Specifications and is the low and responsible bid; and WHEREAS, it is in the best interests of the EDA to enter into a contract with Leadens Excavating, Inc. for the purpose of performing the Work; and WHEREAS, City staff is hereby seeking approval from the EDA of the selection of Leadens Excavating, Inc. as the duly qualified contractor to perform the Work. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. That selection of Leadens Excavating, Inc. as the Contractor to perform the demolition of all building and site improvements located at the Property, tree removal, and site grading of the Property pursuant to the Project Specifications is approved, it being in the best interest of the EDA and City to prepare the Property for redevelopment in accordance with the City's scattered site housing program and policy. 3. That the payment of $8,275 to Leadens Excavating, Inc. to perform the Work is hereby approved. 4. The President, Executive Director, and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the demolition, tree removal, and the re- grading of the Property in accordance with the contract to be prepared by the City Attorney. Dated the 13th day of November, 2018. Kathi Hem en, President Attest. Kirk WDonald, Executive Director PAA#omey\CAS\l Client Files\2 City of New Hope\99-11423 5355 Oregon Ave N\Resolution approving Demolition contract for 5355 Oregon.docx n;� Property Owner. City of New Hope EDA Property Address: 5355 Oregon Avenue North P.I.D. = 05-118-21-34-0061 Fora price of $__ $ a7Jr the contractor named below proposes to fully complete the work in accordance with the attached specifications for demolition, cleanup, site grading, and tree removal work at 5355 Oregon Avenue North. Name of Contractor: �Wq ''v45 L'). : ,'s X, License Number: Address: Telephone: 6tZ`�'ioi[7' �� 3 E-mail Address: Lr-G.� Lrj x 4 v+� Contractor Signature: _ _ .�1 _ _ _ Date: 166D CIE Title: Property O%Vner: City of New Hope FDA Property Address: 5355 Oregon Avenue North P.I.D. = 05-118-21-34-0061 For a price of 0 dC the contractor named below proposes to fully complete the work in accordance with the attached specifications for demolition, cleanup, site grading, and tree removal c.vork at 5355 Oregon Avenue North. Name of Contractor: License Num _zz Telephone: 2 � E-mail Address: Lvyve,-vo (is►' Contractor Si Title: f Date: I L 4:J '�(_ ewa Property Owner: City of New Hope EDA Property Address: 5355 Oregon Avenue North P.I.D. = 05-118-21-34-OO61 For a price of $ -) S_ 40� the contractor named below proposes to fully complete the work in accordance wA the attached specifications for demolition, cleanup, site grading, and tree removal work at 5355 Oregon Avenue North. Name of Contractor: 1 ', 6 Z` �' ` J c c S r. License Number: !4 1,.;.3'S- I e le r- /Vre". Tele hone: -3 �� I E-mail Address: J&IneA i "g 5" F ce,41 P Contractor Signature: Date: Title: r 11 /5/2018- All Metro Excavating, Inc. I Better Business Bureau® Profile Accredited All Metro Excavating, Inc. Demolition Contractors According to the information provided by All Metro Excavating, this company offers excavating, demo. Years in Business: 17 @61h P: N Osseo, MN 55369-1545 http://www.minneap-g-li5—d 4molition.coml Email this Business (612) 328-0341 BBB Rating Customer Reviews • Failure to Average of Customer respond to 1 Review es �m s s ,p� zmrStSi � n Z. 1naslsF a %11M a, } Sipe _Park = ° m f m = N O 7 x 0 and St e 85th Ave N Business Details Customer Complaints 1 complaints closed in last 3 years 1 complaints closed in last 12 months los xvio,. Map data @201 B GoogLa hat with BBB https://www. b bb.org/u s/m n/osseo/profi le/demol ition-contractors/a I I -metro -excavating -in c-0704-96387747 1/4 11 /5/201 & All Metro Excavating, Inc. I Better Business Bureau® Profile Location of This Business Osseo, MN 55369-1545 u Email this Business BBB File Opened: Years in Business: Business Started: Business Started Locally: Business Incorporated: Type of Entity: Business Management Aaron Van Sickle, Owner Contact Information Principal Aaron Van Sickle, Owner Customer Contact Aaron Van Sickle, Owner 9/18/2013 17 7/2/2001 7/2/2001 4/12/2006 in MN Corporation Additional Contact Information 0 Email this Business Website Addresses https://www.yelp.com/biz/all-metro-excavating-minneapolis-2 Customer Complaints 1 Customer Complaints Most Recent Customer Complaint Complaint Type: Problems with Product/Service Status: Unanswered We had an agreement with All Metro Excavating for the submission of an application for a wrecking permit by a certain deadline that was not carried out, nor were we notified of the delay. We sent multiple notifications (via mail, email, text - voicemail became unavailable) of termination of services before any work had been done, and requests for return of our down payment of $2000. We gave him a month to respond and did not receive any communication, nor the return of the funds. 10/23/2017 Customer Reviews Chat with BBB https:I/www.bbb,org/uslmn/osseo/profile/demolition-contractors/all-metro-excavating-Ina0704-96387747 2/4 11 /5/2018, 1 Customer Reviews All Metro Excavating, Inc. I Better Business Bureau® Profile Most Recent Customer Review ;1OZ Kelly W. This company bought product from us with a check. The check then bounced. I was able to get a hold of Aaron and he said he would call back with a credit card. I have been calling him everyday for the last two weeks with no response. Business Categories BBB of Minnesota and North Dakota More Info on Local BBB 05/22/2017 BBB Business Profiles may not be reproduced for sales or promotional purposes. BBB Business Profiles are provided solely to assist you in exercising your own best judgment. Information in this BBB Business Profile is believed reliable, but not guaranteed as to accuracy. When considering complaint information, please take into account the company's size and volume of transactions, and understand that the nature of complaints and a firm's responses to them are often more important than the number of complaints. BBB Business Profiles generally cover a three-year reporting period. BBB Business Profiles are subject to change at any time. If you choose to do business with this business, please let the business know that you contacted BBB for a BBB Business Profile. As a matter of policy, BBB does not endorse any product, service or business. https:lAvww.bbb.org/uslmnlossea/profile/demo$ition-contractorslaii-metro-excavating-inc-0704-963B7747 3/4 BBB Ad Truth For Businesses Become Accredited BBB EU Privacy Shield About BBB BBB Directory Give.org BBB Foundation BBB Programs Council of Better Business Bureaus Contact BBB Business Partner Code Mission & Vision LnO®©D Terms of Use I Privacy Policy I Your Ad Choices I Trademarks �-c` 2018, Council of Better Business Bureaus, Inc., separately incorporated Better Business Bureau organizations in the US, Canada and Mexico, and BBB Institute for Marketplace Trust. All Rights Reserved. 1H , From: The Economic Development Authority in and for the City of New Hope Subject: Request for quotes for demolition, site grading, and tree removal at 5355 Oregon Avenue North. Overview: The City of New Hope EDA is the owner of the property addressed as 5355 Oregon Avenue North, (P.I.D. 05-118-21-34-0061). The house at this location was recently burned down by the fire department as part of a controlled burn exercise. The EDA is requesting quotes for demolition of all remaining buildings and site improvements, cleanup of the foundation and partially burned material, followed by re -grading of the primary excavation area, and tree removal. 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 garage, use the lock box on the side door, code 4401. Please call Aaron Chirpich in the Community Development Department with any questions, 763-531-5114. Proposals must be completed on the enclosed bid form and submitted by 1:00 p.m. on November 5th 2018. 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 November 13th meeting. 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: 5355 Oregon Avenue North P.I.D. = 05-118-21-34-0061 For a price of $ , the contractor named below proposes to fully complete the work in accordance with the attached specifications for demolition, cleanup, site grading, and tree removal work at 5355 Oregon Avenue North. Name of Contractor: License Number: Telephone: E-mail Address: 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, and post demolition grading of the site, in strict accordance with these specifications and in accordance with all applicable ordinances and laws pertaining to removal of buildings, structures, grading and erosion control. Following demolition, contractor is to install erosion control logs around the entire perimeter of the disturbed area. 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. All excavations unless otherwise noted, shall be back filled with clean imported sand. Imported material shall be placed in 1 foot lifts and compacted to no less than 95% standard proctor density. Contactor shall provide the City with third party sampling, analysis and reports to demonstrate that 95% compaction has been achieved. b. The finished grade shall be determined by matching the existing average grade of the excavation areas prior to demolition. The final grade shall maintain pre demolition drainage patterns. No imported topsoil is required. 4. Tree and Vegetation Removal a. City staff have marked all trees and stumps for removal with pink tape. The stumps shall be pulled from the ground and hauled away. Stump pits shall be back -filled. Contractor is to include removal of all marked trees and stuml2s in the demolition bid. 5. 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. Electrical and gas services have been disconnected from the home as part of the controlled burn. c. The water service has been shut off at the property line. Contractor is to excavate the private water line to within 3 feet of the curb -stop and kink the line permanently. Contractor is to mark the location of the termination point with a highly visible marker to ensure that the line can be located easily in the future. d. The sewer service line has been disconnected from the home and capped near the property line. No additional sewer work is required at this time. 7. Asbestos and Other Hazardous Materials a. All hazardous materials were removed from the property prior to the controlled burn. The appliances that are in the detached garage will be removed before demolition. Do not include disposal of these items in your bid. 8. Permits and Inspections a. Contractor will complete and submit the City of New Hope demolition permit application. Permit fees for the demolition permit will be waived, however the State surcharge will still be collected as the City can not waive that portion. Contractor shall have the work inspected prior to backfilling the primary excavation. 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. Contractor is to provide dust control during demolition by watering the home. Water is available at no cost from the City by accessing adjacent hydrants. Please notify New Hope Public Works one week in advance to coordinate hydrant connection. d. Submission of a proposal will constitute an incontrovertible representation by contractor that contractor has complied with every requirement of these specifications and attachments thereto; that without exception the proposal is premised upon performing and furnishing the work including but not limited to the specific means, methods, techniques, sequences, procedures or precautions expressly required by these specifications and attachments thereto; that contractor has received from City satisfactory written resolution of any conflicts, errors, ambiguities, and discrepancies; and that these specifications and attachments thereto are generally sufficient to indicate and convey understanding of the terms and conditions for performing and furnishing the work. Request for Action September 10, 2018 Approved by: Kirk McDonald, City Manager Originating Department: Community Development By: Aaron Chirpich, CD Specialist Agenda Section EDA Item Number 5 Agenda Title Resolution approving contract with Robinson Environmental, Inc. for hazardous material abatement at 5355 Oregon Avenue North (improvement project no. 1018) Requested Action Staff requests approval of a resolution awarding a contract for the abatement of hazardous materials at 5355 Oregon Avenue North, to the low and responsible bidder, Robinson Environmental, Inc. in the amount of $3,149.20. Policy/Past Practice When public bidding is required as part of the Scattered Site Housing Program, it is practice of staff to present contracts to the EDA for consideration. Background The EDA has recently acquired the single-family home located at 5355 Oregon Ave N, as part of the Scattered Site Housing Program. The EDA has directed staff to take the necessary steps in preparing the home for demolition in order to facilitate redevelopment of the property. Recently, a demolition survey was completed on the home in order to identify any hazardous materials located on the property. Before the home can be torn down, all hazardous materials identified in the demolition survey must be removed. Requests for hazardous material abatement quotes were sent to four contractors, and the EDA received two quotes. The bid results are as follows: • Twin Cities Abatement Technologies, Inc. $5,980 • Robinson Environmental, Inc. $3,149.20 Experience with Recommended Contractor The EDA has worked with Robinson Environmental on three previous scattered site housing projects. Robinson Environmental was selected by the EDA for hazardous material abatement work at 6065 Louisiana Avenue North, 5400 Yukon Avenue North, and 4511 Boone Avenue North. Staff had a good experience working with the contractor and has no concerns with hiring them for this project. Funding EDA funds will be used to pay for all work associated with this contract award. Attachments • Resolution • Bids Received • Demolition Survey (specifications) I: \ RFA \ COMM DEV \ 2018 \ EDA \ 9-10-18 \ 5355 Oregon \ EDA 5355 Oregon Approve Asbestos Removal Contract Project 1018.docx T.C.A.T. INC Phone: 651-776-7723 Twin Cities Abaternem Technologies, Inc. fax: 651-771-1360 l l00 North Concord Street Email:.tcatinc ❑ttttail.catn Soutb St. Paul, MN. 55075 PROPOSAL Proposal Submitted To: C ,� a+ Ne", Job Address: -e -V ss Ya z T.0 A 1'. INC. proposes to provide the labor and supplies necessary to complete the following scope of work: e follawiae ite rt{s u re1- u t a.a a e r ec T-- tra le * General and Professional liability insurance * Strict adherence to State and Federal regulations * Notification and permit j fee to MN. Dept. of Health * Waste disposed of in an approved landfill * Waste Manifest and any air test results supplied to customer * T.C.A.T. INC. assumes no responsibility for any damages incurred from tape and/or spray glue * Client is t espmnsible for all electrical and water supplies and associated costs. All proposed services and supplies are guaranteed to be as stated above for: $ 5'9 8d Additional Bids, if any: $ Payment is due in full upon completion of the project. Any changes in the written scope of the project that involves extra costs will be added to the original estimate. T.C.A.T INC. shall inform the client, in writing, prior to the completion of the project. All agreements are conditional upon any accidents or delays beyond our control. T.C.A.T. INC. is not responsible for damages to pipes or other structures due to aging an&'or corrosion. A $ 50.00 fee will be added to the balance of the project cost for all returned checks. A 15 % fee can be added to the project cost to all payments received after the due date. Proposal Submitted By: n `e t _ _ _ _ -Date: - ,.. Acce tauCe Of F=Osal The above prices, terms and conditions are satisfactory and are hereby accepted. 1,,-We authorize T.C.A.T INC. to perform the wotk as specified above. Payment will be made as described above. Customer Name: An,jgstrom nalyfical Inc. Aaron Chirpich City of New Hope 4401 Xylon Ave N New Hope, MN 55428 7/29/2018 5355 Oregon Ave N New Hope Dear Aaron: 5001 Cedar Lake Rd. St. Louis Park, MN 55416 952-252-0405 office 952-252-0407 fax Kevin Hagen #2652, a representative of Angstrom Analytical, Inc., visited the above referenced property on July 24, 2018 for the purpose of conducting an asbestos demolition Inspection. We are prepared to state that there are category I non -friable asbestos containing building materials contained In or on the fabric of the structure. The following materials tested positive for the presence of asbestos: 9x9 floor the & mastic The non -friable materials are: Category I: 1. Approximately 550-600 square feet of asbestos containing 9x9 floor the & mastic In the LR/dining. 2. Approximately 200-210 square feet of asbestos containing 9x9 floor tile & mastic In the kitchen/bath bottom layer. 3. Approximately 280-300 square feet of asbestos containing 9x9 floor the & mastic In the bedrooms bottom layer. Note: The positive 9x9 floor the & mastic runs throughout the main floor of the home. (bottom layer) During the course of the survey the following hazardous materials were noted: Mercury AA I_� lances 1 thermostat 1 water heater 1 refrigerator 1 washer/dryer 1 stove lfurnace 2 smoke det. 1 microwave All friable and category II non -friable materials need to be removed, per applicable regulations, prior to and demolition efforts. Category I non -friable materials are allowed to be left in place for the demolition. However, the landfill must be made aware that the demolition debris will contain (minimal amounts of) category I non-frlable asbestos containing material and Is subject to the MPCA's rules and regulations pertinent to the demolition efforts (notlfications, etc.). This survey should not be Interpreted as a bidding document or as an asbestos project design. It Is Incumbent upon the contractor to verify quantities. Quantification of materials identified In this Inspection report are approximations and based on observed quantities. Additional amounts of material may be present under floor, above ceilings and Inside wall cavities and not fully quantified. For example, thermal system Insulation Indentlfled In a basement may also exist Inside wall cavities. If you have any questions, please call us at the number above, Sincereiy, Kevin Hagen Angstrom Analytical, Inc. Material Identification Table C� J0 gstroln 5001 Cedar Lake Road Project #: On -site nal ical A St. Louis Park, MN 55416 Date: 7/29/2018 Inc. 952-252-0405 Client: City of New Hope Project: Residential N=no damage ND=none detected PD = potential damage Address: 4401 Xylon Ave N Address: 5355 Oregon Ave N D=moderate damage NS=Nat Sampled PSD = potential for New Hope, MN 55428 New Hope SD= significant damage NAC=nut accessible significant damage Phone: 763-531-5114 Contact: Aaron Chirpich SF=square feet EA=each NS-Not Suspect Email: achirvichPci.new-hooe.mn.us Phone: 763-531-5114 LF = linear feet NT-Not Tested Sample # Location Material Description Asbestos / % Quantity / Unit Condition Damage Potential Rating 1-3 garage sheetrockjointtape white granular ND 200-220/SF N PD 0 4-6 garage insulation fiberglass ND 350-400/51' N PD 0 7-9 LR/dining floor tile red CHR3-4% 550-600/SF N PD 1 10-12 LR/dining mastic for 7-9 black CHR 2-3% 550-600/SF N PD 1 13-15 kitchen & bath linoleum top layer stone patt. ND 200-210/5F N PD 0 16-18 kitchen & bath linoleum mid layer beige ND 200-210/5F N PD 0 19-21 kitchen & bath floor file bottom layer tan CHR 3-4% 200-210/SF N PD 1 22-24 kitchen & bath mastic for 19-21 black CHR 2-3% 200-210/SF N PD 1 25-27 hall bath linoleum top layer stone patt. ND 20-25/SF N PD 0 28-30 hall bath linoleum bottom layer white ND 20-25/SF N PD 0 31-33 throughout house ceiling texture white granular ND 400-450/SF N PD 0 34-36 bedrooms 12x12floor file top layer self adhesive ND 280-300/517 N PD 0 37-39 bedrooms flooring bottom layer red CHR 34% 280-300/SF N PD 1 40-42 bedrooms mastic for 37-39 black CHR 2-3% 280-300/SF N PD 1 43-45 throughout house paneling adhesive beige ND 750-800/SF N PD 0 46- 8 throughout house sheetrock joint,tape white granular ND 1300-1400/SF N PD 0 49-51 attic insulation blown -in ND 650-700/SF N PD 0 52-54 house/garage roofing gray/black ND 850-900/SF N PD 0 CHR-Chrysatile TREM Tremorde ACT-Actinolite B-basement BR -bedroom H-hall DR -dining rm FR-family rm C-corridor CL-closet AM-Amosite CROC-Crocidolite ANTH-Anthophyllite K-kitchen BA -bath M-mech. LR-living rm G-garage U-utility ST-stairway Aj'ngstrom nalytiCa� Inc. Analysis of Bulk Samples for Asbestos Using Polarized Light Microscopy (PLM) Aaron Chirpich City of New Hope 4401 Xylon Ave N New Hope, MN 55428 Re: 5355 Oregon Ave N Number of Samples: 54 5001 Cedar Lake Rd. St, Louis Park, MN 55416 952-252-0405 office 952-252-0407 fax Methods and Definitions The submitted samples were analyzed using the EPA Interim Method i1600/M4-82-020 (polarized light microscopy with dispersion staining). The method defines an asbestos containing material as one that contains grater than 1% asbestos by weight and asbestos Is defined as the fibrous forms of serpentine and certain amphiboles, While the fibrous and non fibrous forms of minerals are discernible microscopically In hand specimens, the distinction between them Is not clear on a microscopic level, especially after processing or manufacturing. Fibrous omphlboles are generally those whose mean aspect ratios (length over width) under the microscope are approximately >10; non fibrous omphlboles are generally those whose mean aspect ratios are approximately <6. During analysis, morphology and an estimate of mean aspect ratio are used to assign a given mineral fiber population to fibrous and rion fibrous categories. That non fibrous omphlboles are not reported as asbestos is consistent with mineralogical definitions, but does not Imply that non fibrous amphiboles are not hazardous. Airborne concentrations of them may be regulated by OSHA under certain circumstances. The type of dispersion staining used Is generally phase contrast, although central stop dispersion staining may also be used. Percentage Reporting The percentage of each fiber type present was determined using volume percents estimated from stereoscopic examination, projected area percents from mounted slide examination and percents from comparison to weight percent standards. Such estimations are suitable for most samples, but do have large error ranges. Errors are estimated to be 100 relative percent uncertainty for percentage estimates under 10% ranging down to as little as 10 relative percent uncertainty for percentage estimates greater than SO%. Friable samples which have been estimated by the above methods to contain less than 10% asbestos can be point -counted, according to the EPA Interim Methods, as required by NESHAPS. In low percentage samples, point counting may produce false negatives or positives, due to the small number of points counted. For samples consisting of more than one apparent type of material or layer, the percentage of each fiber type In each type of material of layer Is determined and reported separately; an overall average for the sample of each fiber type Is then calculated. The reported friability of a sample refers to that friability observed In the condition analyzed (broken, crushed, etc.), and Is not to be substituted for an on -site assessment of friability, Each Angstrom Analytical lab report relates only to the sample tested and may not, due to the sampling process be representativeyf the m94riol sampled. Kevin lytical, Inc. July 29, 2018 Full Service Laboratory and on -site Industrial Hygiene Services for the Hazardous Materials Abatement Industry EDA RESOLUTION NO. 18- 14 RESOLUTION APPROVING CONTRACT WITH ROBINSON ENVIRONMENTAL, INC. FOR HAZARDOUS MATERIAL ABATEMENT AT 5355 OREGON AVENUE NORTH (IMPROVEMENT PROJECT NO.1018) BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, the Economic Development Authority in and for the City of New Hope ("EDA") purchased certain real property located at 5355 Oregon Avenue North, New Hope, MN and legally described as "Lot 1, Block 2, Sunset Heights, Hennepin County, Minnesota" (the "Property") with the intentions of redeveloping the Property; and WHEREAS, City staff intends to redevelop the Property in accordance with the City's scattered site housing program and policy and return the Property to the tax rolls for the benefit of all taxing jurisdictions; and WHEREAS, City staff is exercising due diligence to correct the Property's blighted condition by performing an environmental cleanup of the Property (the "Work") to be followed by the demolition of the buildings on the Property and site grading of the Property; and WHEREAS, Robinson Environmental, Inc. submitted a proposal that meets all of the Project Specifications as set forth on the attached Exhibit A and is the low bid; and WHEREAS, it is in the best interests of the EDA to enter into a contract with Robinson Environmental, Inc. for the purpose of performing the Work; and WHEREAS, City staff is hereby seeking approval from the EDA of the selection of Robinson Environmental, Inc. as the duly qualified contractor to perform the Work. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. That selection of Robinson Environmental, Inc. as the Contractor to complete the abatement of all hazardous materials pursuant to the Project Specifications is approved, it being in the best interest of the EDA and the City to prepare the Property for redevelopment in accordance with the City's scattered site housing program and policy. 3. That the payment of $3,149.20 to Robinson Environmental, Inc. to perform the Work is hereby approved. 4. The President, Executive Director and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the abatement of hazardous materials located at the Property in accordance with the contract to be prepared by the City Attorney. Dated the 10 day of September, 2018. Kathi e , re ' ent Attest: Kirk MdEjonald, Executive Director Chir ich Aaron From: Tim Robinson <robinsonenviro@aol.com> Sent: Friday, August 31, 2018 11:30 AM To: Chirpich Aaron Subject: Asbestos Robinson Environmental, Inc. 4716 67th Ave. N. Brooklyn Center, MN 55429 Ph: 763-566-4242 - Fax: 763-566-4681 Date: 08/31 /2018 Proposal For: City of New Hope ATTN: Aaron Robinson Environmental Inc. will perform asbestos removal at 5355 Oregon Ave N New Rope, MN. Using licensed asbestos workers, following all Minnesota OSHA, MDH and MPCA rules and regulations for the removal of asbestos. Robinson Environmental Inc. will furnish all labor, materials, equipment disposal and Insurance for project. SCOPE OF Work: Removal of asbestos floor tile, mastic & sub floor. Thermostat, water heater, furnace, washer/dryer, smoke detectors PRICE: 3,149.20 Timothy Robinson Request for Action Agenda Section EDA ` April 9, 2018 Approved by: Kirk McDonald, City Manager Item Number Originating Department: Community Development 4 By: Aaron Chirpich, CD Specialist Agenda Title Resolution approving purchase agreement for the acquisition of 5355 Oregon Avenue North (improvement project no. 1018) Requested Action Staff requests the EDA to authorize entering into a purchase agreement for the acquisition of 5355 Oregon Avenue North, for $170,000 (purchase price) plus any associated fees. Policy/Past Practice In the past, the EDA has successfully acquired functionally obsolete properties for redevelopment as part of the city's scattered site housing program. Background 5355 Oregon Avenue is a foreclosed property owned by TCF Bank. The home is a two -bedroom, single -story rambler that was built in 1952 and sits over a dirt floor crawlspace. The main floor living area is just over 900 square feet. The home has not been substantially improved since built, and does not meet the expectations of many buyers in the market. Rehabilitation of the home does not make economic sense, as adding onto the home would prove cost prohibitive. Given the home's age and functionally obsolete floor plan, staff view the home as a candidate for demolition to facilitate the development of two new single-family homes. To accommodate two new homes, the existing lot will have to be subdivided. The subdivision of the property will include several factors given the unique shape of the corner lot. The city engineer has prepared preliminary drawings that show the preferred layout for the site. The ideal layout creates two lots that are nearly compliant with the underlying zoning standards for width and area within the R-1 District. However, the south parcel falls short of compliance for the required lot area by 464 square feet. Therefore, to complete a full subdivision of the property, a variance for reduced lot area will be necessary. The buildable area has been analyzed for both parcels and staff have determined that the lots will provide sufficient space for a variety of floor plans that meet the required setbacks. The potential subdivision of the subject property will be fully reviewed by the Planning Commission and their recommendation will be forwarded to the City Council for final action. The purchase of 5355 Oregon Avenue by the EDA is not contingent on a variance being approved. Offer The house was initially offered at a price of $159,900. Staff toured the property on the first day it was listed and by the next day the seller had received multiple offers and requested "best and final" offers from all interested parties. Given the highly competitive nature of the market for distressed properties, staff prepared an offer of $170,000 that was accepted by the seller on the following day. I: \ RFA \ COMM DE V \ Development \ Housing \ 5355 Oregon Avenue \ Q & R - 5355 Oregon Acquisition 4-9-18.docx Request for Action, Page 2 Budget Staff have prepared the following preliminary budget for the project: Expenditures: • Acquisition $170,000 • Engineering and Survey $5,000 • Demolition and Site Prep $35,000 • Legal $5,000 Total = $215,000 Revenue: ■ Lot Sale Proceeds $110,000 Total = $110,000 Value Gap/Loss = $105,000 Funding Because the house is in relatively good condition, it will not qualify as a blighted property. Therefore, CDBG grant funds cannot be used for the project and the value gap will have to be covered by EDA reserve funds. Recommendation Despite a projected value gap of $105,000 on this project, the long term benefits of securing a double -lot opportunity are substantial. Staff anticipate that the site will support two new single-family homes valued in the $350,000 range per home, thereby increasing the value of the property by $550,000. This type of increase would achieve the broader goal of growing the city's overall market value on a lot -by -lot basis and bring new construction to a neighborhood that is located in a distressed census tract. Therefore, staff recommends the EDA approve the attached resolution prepared by the city attorney and the terms of the attached purchase agreement. Attachments • Resolution • Location Map • Sample Lot Layout • Project Budget • MLS Listing ■ Purchase Agreement CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 18-04 RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF 5355 OREGON AVENUE NORTH (project no. 1018) BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, on September 22, 2014 the City Council adopted Resolution No.14-126 at the City Council meeting authorizing City community development staff to actively pursue the acquisition of distressed, functionally obsolete single family homes for potential purchase by the Economic Development Authority in and for the City of New Hope, as part of the City's scattered site housing program; and WHEREAS, the City Council has directed City staff to negotiate for the terms most favorable to the City, and the execution of purchase agreements so as to secure purchase rights for these real properties, contingent on the review and approval of the Economic Development Authority in and for the City of New Hope to the terms of the purchase agreements; and WHEREAS, New Hope City staff have identified the opportunity to purchase certain real property located at 5355 Oregon Avenue North, New Hope, MN and 'legally described as: Lot 1, Block 2, Sunset Heights Addition, Hennepin County, Minnesota (the "Property") from TCF National Bank ("Seller"); and WHEREAS, the Property is currently unoccupied; and WHEREAS, the house located on the Property was built in 1952 and has a functionally obsolete floor plan; and WHEREAS, City staff believes that the best use of the Property is demolition in order to maximize the tax base through splitting the Property into two separate lots and making them available for the development of two new residential housing units; and WHEREAS, the Property will be acquired using Economic Development Authority in a for the City of New Hope funds; and WHEREAS, it is in the best interest of the Economic Development Authority in and for the City of New Hope to purchase the Property from the Seller for the sum of $170,000.00, in order to redevelop the Property in accordance with the City's scattered site housing program and policy; and 3. 4. 5. 8. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 2o. 21. 22. 23. 24. 26. 26. 27. 28. 29. 30. 31. 32. BUYER (S): PURCHASE AGREEMENT This form approved by tha Minnesota Association of REALTORSO, which disclaims any Nabikity, arising out of use or misuse of this form. 02b17 Mfnnnsoia Rs ociaffon of REALTORS°, Edina, MN 1. Date ! ;_- 2. Pagel ,�JL ti Dollars ($ kz",r shall be delivered to listing broker, or, if checked, to ❑ no later than two (2) Business ('£arnW Money Ho:dae)-.._.-_-- �.�..... Days after Final Acceptance Cate of this Purchase Agreement. Brayer and Seiler agree that earnest money shall be deposited In the trust account of Earnest Morley Holder as specified above within three (3) Business Days of receipt of the Gamest money or Final Acceptance Date of this Purchase Agreement, whichever is later. Said earnest money is part payment for the purchase of the property located at Street Address: 5355 Oregon Avenue N City of New Hope ,County of Hennepin State of Minnesota, legally described as LEGAL TO GOVERN PROPERTY ADDRESS Said purchase shall Include all Improvements, fixtures, and appurtenances on the property, if any, Including but not limited to, the following (collectively the "Property"): garden bulbs, plants, shrubs, trees, and lawn watering system; shed; storm sash, storm doors, screens, and awnings; window shades, blinds; traverse, curtain, and drapery rods, valances, drapes, curtains, window coverings, and treatments, towel rods; attached lighting and bulbs; fan fixtures; plumbing fixtures; garbage disposals; water softener; water treatment system; water hosting systems, heating systems; air exchange system; environmental remedlation system (e.g., radon, vapor Intrusion); sump pump; TV antennalcable TV jacks and wiringfTV wall mounts; wall/belling-mounted speakers and mounts; carpeting; mirrors; garage door openers and all controls; smoke detectors; fireplace screens, door, and heatilators; BUILT-INS: dishwashers; refrigerators; wine/beverage refrigerators; trash compactors; ovens; cook -top stoves; warming drawers; microwave ovens; hood fans; shelving; work benches; intercoms; speakers; air conditioning equipment; electronic air filter; humidifier/dehumidifier; liquid fuel tanks (and controls); pool/spa equipment; propane tank (and controls); security system equipment; TV satellite dish; AND the following personal property shall be transferred with no additional monetary value, and free and clear of all liens and encumbrances: NON CWWI WIYWWWWW#W#rw#wW##WWW##WWNWW#MkWWWW#WWWWWiWW###WWW##W#WWWWWW##i#Wt.WW#WWW##WW#WWWWWWWW#WWiAiW##*#*WWWW#W#WWWWW#IYWWWWkNW Notwithstanding the foregoing, leased fixtures are not included. Notwithstanding the foregoing, the following Item(s) are excluded from the purchase: 33. PUBMASE PRICE: 34. Seller has 9gread to sell the Property tp Buyer to the sum f ($ , ice_ 35. f VI%� .n-%"' .U.�,-t.g ,_ ice,,,,Fw, , ...�.,.,,��_- --- .�-- Dollars, 36. which Puyer agrees to pay in the following manner: 37. 1. 0U percent (%) of the sale price In CASH, or more in Buyer's sole discretion, which includes the Gamest 38. money; 39. 2. percent (0/6) of the sale price in MORTGAGE FINANCING. (See following Mortgage Financing section,) 40. S. percent (%) of the sale price by ASSUMING Seller's current mortgage. (See attached Addendum to 41. Purchase Agreement Assumption Financing.) 42. 4. percent (%) of the sale price by CONTRACT FOR DEED. (See attached Addendum to Purchase 43. Agreement: Contract for Deed Financing.) 44. 41 CLCDSI G DATE: I y 45. The date of closing shall be , 20- MN:PA-1 (6117) lrumites blf­.i.irc:,, PURCHASE,4GREIVIENT 94. Page 3 Date , 95. Property located at 5355 Oregon Avenue N, New Hope MN 55428 96. Notwithstanding the language in the preceding paragraph, Seller may not declare this Purchase Agreement canceled 97. if the reason this Purchase Agreement does not close was due to: 98. (a) Seller's failure to complete work orders to the extent required by this Purchase Agreement; 99. (b) Seller's failure to complete any other financing terms agreed to be completed by Seller here, or 100. (c) any contingency for the sale and dosing of Buyer's property pursuant to this Purchase Agreement, except as 101. specified in the contingency for sale and closing of Buyer's properly. 102. If the Written Statement Is not provided by the date specified on line 76, Seller may, at Seller's option, declare this 103. Purchase Agreement canceled by written notice to Buyer at any time prior to Seller receiving the Written Statement, 104. in which case this Purchase Agreement is canceled. In the event Seller declares this Purchase Agreement canceled, 105. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 106. directing all earnest money paid here to be refunded to Buyer. 107. If the Written Statement Is not provided, and Seller has not previously canceled this Purchase Agreement, this 108. Purchase Agreement is canceled as of the closing date specified in this Purchase Agreement. Buyer and Seller 109. shall immediately sign a Cancellation of Purchase Agreementconfirming said cancellation and directing all earnest 110. money paid here to be refunded to Buyer. 111. LOCKS; OF MORTGAGE INTEREST RATIE' RA " : The Rate shall be locked with the lenders) by Buyer: 112. (Check one.) 113. ❑ WITHIN FIVE (5) BUSINESS DAYS OF FINAL ACCEPTANCE DATE OF THIS PURCHASE AGREEMENT; OR 114. ❑ AT ANYTIME PRIOR TO CLOSING OR AS REQUIRED BY LENDER(S). 115. COMMITMENT WORK ORDERS: Nothing in this Purchase Agreement shall be construed as a warranty 116. that Seller shall make repairs required by the lender commitment, However, Seller agrees to pay up to 117. $ to make repairs as required by the lender commitment. If the lender commitment 118. is subject to any work orders for which the cost of making said repairs shall exceed this amount, Seller shall have the 119. following options: 120. (a) making the necessary repairs; or 121, (b) negotiating the cost of making said repairs with Buyer; or 122. (c) declaring this Purchase Agreement canceled, In which case this Purchase Agreement is canceled. Buyer and Seller 123. shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and directing all earnest 124. money paid here to be refunded to Buyer, unless Buyer provides for payment of the cost of said repairs or escrow 125. amounts related thereto above the amount specified on line 117 of this Purchase Agreement. 126. ❑ SELLER ❑ BUYER agrees to pay any reinspection fee required by Buyer's lender(s). ------(cheek nn s.�------.. 127. EHA ESCAPE CLAUSE (FHA Financing onlv3: "it is expressly agreed that, notwithstanding any other provisions 128, of this contract, the purchaser shall not be obligated to complete the purchase of the Property described here or to Incur 129. any penalty by forfeiture of earnest money deposits or otherwise, unless the purchaser has been given In accordance 130. with the Department of Housing and Urban Development ("HUD")/FHA or DVA requirements a written statement by the 131. Federal Housing Commissioner, Department of Veterans' Affairs, or a Direct Endorsement lender setting forth the 132. appraised value of the Property as not less than $ (sale pace) 133. The purchaser shall have the privilege and option of proceeding with consummation of the contract without regard 134. to the amount of the appraised valuation. The appraised valuation Is arrived at to determine the maximum mortgage 135. HUD will Insure; HUD does not warrant the value nor the condition of the Properly.The purchaser should satisfy himself/ 136. herself that the price and condition of the Property are acceptable" 137. LEINDER_PROCESSING FEES (FHA, DVA Finerr-hig Only): Seller agrees to pay Buyer's closing fees and 138. miscellaneous processing fees which cannot be charged to Buyer, not to exceed $ 139. This amount is in addition to Seller's Contributions to Buyer's Costs, if applicable. WPM (81M 183. Property located at PURCHASE 4GRPEMENT 182. Page 5 Date _ 2 is I $ 5355 Oregon Avenue N, New Hope MN 55428 184. All inspection(s), test(s), and resulting negotiations, if any, shall he done within Calendar Days of Final 185. Acceptance Date of this Purchase Agreement ("Inspection Period'. Buyer may cancel this Purchase Agreement based 186. on the Inspection(s) or test result(s) by providing written notice to Seller, or licensee representing or assisting Seller, of 187. Buyer's Intent to cancel no later than the end of the Inspection Period. If Buyer cancels this Purchase Agreement, 188. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said cancellation and 189. directing all earnest money paid here to be refunded to Buyer. If Buyer does not cancel this Purchase Agreement before 190. the end of the Inspection Period, then this Inspection Contingency shall be deemed removed and this Purchase 191. Agreement shall be In full force and effect. 192. Seller, or licensee representing or assisting Seller, 1 SHALL ❑ SHALL NOT have the right to continue to offer (Chr kone.) ---- 193. the Property for sale until this Inspection Contingency is removed. 194. OTHER INSPECTION ITEMS: 195. 196. 197. 198. _SALE OF DYER'S PRQpERTY: 199. (Check one.) 200. ❑ 1. This Purchase Agreement is subject to an Addendum+ to Purchase Agreement: Sale of Buyer's Property 201. Contingencyfor the sale of Buyer's property. (If checked, see attached Addendum.) 202. OR 203. ❑ 2. This Purchase Agreement is contingent upon the successful closing on the Buyer's property located at 204• , which is scheduled to close on 205. .__ , 20 pursuant to a fully executed purchase agreement. If Buyer's 206. property does not close by the closing date specified In this Purchase Agreement, this Purchase Agreement 207. is canceled. Buyer and Seller shall immediately sign a Cancellation of Purchase Agreement confirming said 208. cancellation and directing all earnest money paid here to be refunded to Buyer.The language in this paragraph 209. supersedes any other provision to the contrary In any financing contingency made a part of this Purchase 210. Agreement, If applicable. 211. OR 212. [ * 3. 'Buyer represents that Buyer has the financial ability to perform on this Purchase Agreement without the sale 213. and closing on any other property. 214. REAL ESTATE TAXES[SPSCIAL ASSESSMENTS: 215. REAL ESTATETAXES: Seller shall pay on the date of closing all real estate taxes due and payable in all prior years 216. Including all penalties and interest. 217. Buyer shall pay[a PRORATED FROM DAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate taxes due 218. and payable in the year of closing. 219. Seller shall pay ❑✓ PRORATEDTO DAY OF CLOSING ❑ 12ths OF ❑ ALL ❑ NO real estate taxes due and ------�. ,(rihcckOil P)..� 220. payable in the year of closing. 221. If the Property tax status is a part- or non -homestead classification In the year of closing, Seller ❑SHALL[) SHALL NOT 222. pay the difference between the homestead and non -homestead. 223. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter, the payment of which 224. Is not otherwise here provided. No representations are made concerning the amount of subsequent real estate taxes. MN:PA-5 (11M7) PURCHASE C:�R ElliIEIVT 269. Page 7 Date ��fr�f' f 270. Property located at 5355 Oregon Avenue N, New Hope MN 55428 271. Seiler shall deliver possession of the Property: (Check one.) 272. IMMEDIATELY AFTER CLOSING; or 273. ❑ OTHER: 274. Seller agrees to remove ALL DEBRIS AND ALL PERSONAL PROPERTY NOT INCLUDED HERE from the Property 275. by possession date. 276. LINi(IrD DEIIfC1=S: Seller warrants that Seller shall permanently disconnect or discontinue Seller's access or service 277. to any device or system on or serving the property that is connected or controlled wirelessly, via Internet protocol ("IPJ 278. to a router or gateway or directly to the cloud no later than delivery of possession as specified in this Purchase 279. Agreement. 280. PROAATIONS: All interest; unit owners' association dues; rents; and charges for city water, city sewer, electricity, and 281. natural gas shall be prorated between the parties as of date of closing. Buyer shall pay Seller for remaining gallons of 282. fuel oil or liquid petroleum gas on the day of closing, at the rate of the last fill by Seller. 283. TITXA INATI N: As quickly as reasonably possible after Final Acceptance Date of this Purchase Agreement: 284. (a) Seller shall deliver any abstract of We and a copy of any owner's title insurance policy for the Property, if 285. in Seller's possession or control, to Buyer or Buyer's designated title service provider. Any abstract of title or 286. owner's title insurance policy provided shall be Immediately returned to Seller, or licensee representing or 287. assisting Seller, upon cancellation of this Purchase Agreement; and 288. (b) Buyer shall obtain the title services determined necessary or desirable by Buyer or Buyer's lender, including 289. but not limited to title searches, title examinations, abstracting, a title insurance commitment, or an attorney's 290. title opinion at Buyer's selection and cost and provide a copy to Seller. 291. Seiler shall use Seller's best efforts to provide marketable tide by the date of closing. Seller agrees to pay all costs 292. and fees necessary to convey marketable title including obtaining and recording all required documents, subject to the 293. following: 294. In the event Seller has not provided marketable title by the date of closing, Seller shall have an additional thirty 295. (30) days to make title marketable, or In the alternative, Buyer may waive title defects by written notice to Seller. In 296. addition to the thirty (30)-day extension, Buyer and Seller may, by mutual agreement, further extend the closing 297. date. Lacking such extension, either party may declare this Purchase Agreement canceled by written notice to 298. the other party, or licensee representing or assisting the other parry, in which case this Purchase Agreement is 299. canceled. If either party declares this Purchase Agreement canceled, Buyer and Seller shall Immediately sign a 300. Cancellation of Purchase Agreement confirming said cancellation and directing all earnest money paid here to be 301. refunded to Buyer. 302. 6JMIV[MN OF LAND, BOUNDARIES. AND A S: if this sale constitutes or requires a subdivision of land 303. owned by Seller, Seller shall pay all subdivision expenses and obtain all necessary governmental approvals. Seller 304. warrants that the legal description of the real property to be conveyed has been or shall be approved for recording as 305. of the date of closing. Seller warrants that the buildings are or shall be constructed entirely within the boundary lines 306. of the Property. Seller warrants that there is a right of access to the Property from a public right-of-way. 307. MECHANIC'S LIENS: Seller warrentsthat priorto the closing, payment in full will have been made for all labor, materials, 308, machinery, fixtures, or tools furnished within the 120 days immediately preceding the closing In connection with 309. construction, alteration, or repair of any structure on, or improvement to, the Property. 310. NOTIIC ES: Seller warrants that Seller has not received any notice from any governmental authority as to condemnation 311. proceedings, or violation of any law, ordinance, or regulation. If the Property Is subject to restrictive covenants, Seller 312. warrants that Seller has not received any notice from any person or authority as to a breach of the covenants. Any 313. such notices received by Seller shall be provided to Buyer immediately. 314. PIMENSI S: Buyer acknowledges any dimensions, square footage, or acreage of land or improvements provided 315. by Seller, third party, or broker representing or assisting Seller are approximate. Buyer shall verify the accuracy of 316. information to Buyer's satisfaction, If material, at Buyer's sole cost and expense. 317. ACCESS AGREEMENT* Seller agrees to allow reasonable access to the Property for performance of any surveys or 318. inspections agreed to here. MN:PA 7 (8117) Irogiomr fZ-o' 'i: 370. Property located at PURCHA E �IaENT 369. Page 9 Date 5355 Oregon Avenue N, New Hope MN 55428 371. (Check approprlafe boyes.) 372. SELLER WARRANTS THAT THE PROPERTY IS EITHER DIRECTLY OR INDIRECTLY CONNECTED TO: 373. CITY SEWER ❑✓ YES ❑ NO / CITY WATER ❑✓ YES ❑ NO 374. SU9 RFACE SEWAGE TREATMENT SYSTEM 375. SELLER ❑ DOES 0 DOES NOT KNOW OF A SUBSURFACE SEWAGE TREATMENT SYSTEM ON OR —"(ohm* one4_----•--- 376. SERVING THE PROPERTY. (If answer Is DOES, and the system does not require a state permit, see Disclosure 377. Statement. Subsurface Sewage Treatment System.) 378. P iVA ATE WELL 379. SELLER 0 DOES ❑ DOES NOT KNOW OF A WELL ON OR SERVING THE PROPERTY. 380. (If answer is DOES and well Is located o71S Property, see Disclosure Statement Well.) 381. THIS PURCHASE AGREEMENT ❑ IS NOT SUBJECT TO AN ADDENDUM TO PURCHASE AGREEMENT -----lChecit ona.�---- 382. SUBSURFACE SEWAGE TREATMENT SYSTEM AND WELL INSPECTION CONTINGENCY. 383. (If answer is IS, see attached Addendum.) 384. IF A WELL OR SUBSURFACE SEWAGE TREATMENT SYSTEM EXISTS ON THE PROPERTY, BUYER HAS 385. RE:CEWEDADISCLOSURESTATEMENT:WELLAND/ORADISCLOSURE STATEMENT- SUBSURFACESEWAGE 386. TREATMENT SYSTEM. 387. HOME PROTECTION/WAARA.NTY PLAN: Buyer and Seller are advised to investigate the various home protection/ 388. warranty plans avallable for purchase. Different home protection/warranty plans have different coverage options, 389. exclusions, limitations, and service fees. Most plans exclude pre-existing conditions. (Check one.) 390. ❑ A Home Protection/Warranty Plan will be obtained by ❑ BUYER ❑ SELLER and paid for by 391. ❑ BUYER ❑ SELLER to be issued by —.(checkona) — 392. it a cost not to exceed $ 393. No Home Protectlon/warranty Plan Is negotiated as part of this Purchase Agreement. However, Buyer may elect 394. to purchase a Home Protection/Warranty Plan. 395. 396. Garth Johnson (licenses) 397 The Realty House (Real Estate Company Name) (Ny (Licensee) �``� Cud 399. ! (Real Esh& Company Name) A ENCY NOTIGE Is Seller's Agent ❑ Buyers Agent ❑ Dual Agent ❑ Facilitator. is ❑ Seller's Agent �uyer's Agent ❑ Dual Agent ❑ Facilitator. 400, THIS NOTICE DOES NOT SATISFY MINNESOTA STATUTORY AGENCY DISCLOSURE REQUIREMENTS. MN:PA-9 (SIM •atrkx1vo v � �. 449. Property located at PURCHASE GRPEMEP�T 448. Page 11 Date 4 7G ( 9 5355 Oregon Avenue N, New Hope MN 55428 460. ELEC71;ON1-C -SfGNAURES: The parties agree the electronic signature of any party on any document related to this 451. transaction constitute valid, binding signatures. 452. FINAL ACCEPTANCE: To be binding, this Purchase Agreement must be fully executed by both parties and a copy 453. must be delivered. 454. SS1RViVAL: All warranties specified In this Purchase Agreement shall survive the delivery of the deed or contract 455. for deed. 456. 457. 468. 459. 460. 461. 462. 463. 464. L ft iirl_t/L.t O- ,AGU : -- - . trut�i� L�7 0 + CL4 a.c�w,. f t/i/I Q ti 'A ,k 1rjn er A 465. _ 1tA-1� �,,L• ��. ^ au ! � ; . ,d{ is [e. r n _ 466. 467. 468. 469. 470. 471. ADDENDA: The following addenda are attached and made a part of this Purchase Agreement. 472. NOTE: Disclosures and optional Arbitration Agreement are not part of this Purchase Agreement. 473. [ErAddendum to Purchase Agreement 474. Wddandum to Purchase Agreement: Assumption Financing 475ddendumn to Purchase Agreement: Buyer Purchasing "As Is"and Limitation of Seller Liability 476. ❑ Addendum to Purchase Agreement., Condominium/Townhouse/Cooperative Common Interest Community 477. (`GICM) 478. ❑ Addendumn to Purchase Agreement: Contract for Deed Financing 479. i '` Addendum to Purchase Agreement: Disclosure of Information on Lead -Based Paint and Lead -Based Paint 480. Hazards 481. ❑ Addendum to Purchase Agreement Sale of Buyer's Property Contingency 482. ❑ Addendum to Purchase Agreement., Short Sale Contingency 483. ❑ Addendum to Purchase Agreement, Subsurface Sewage Treatment System and Well Inspection Contingency MN:PA-11 (B/17) 1) DISCLOSURE STATEMENT: ARBITRATION DISCLOSURE AND RESIDENTIAL REAL PROPERTY ARBITRATION AGREEMENT This form approved by the Minnesota Associagon of REALMRS°, which disclaims any liability arising out of use or rdsuse of this form. ® 2014 Minnesota Association of REALTORS°, Edina, MN 1. Page 1 2. ARBITRATION DISCLOSURE 3. You have the right to choose whether to have any disputes about disclosure of material facts affecting the use 4. orenjoyment of the property that you are buying or selling decided by binding arbitration or by a court of law. By agreeing 5. to binding arbitration, you give up your right to go to court. By signing the RESIDENTIAL REAL PROPERTY 6. ARBITRATION AGREEMENT rARBITRATION AGREEMEN71 on page two (2), you agreeto binding arbitration underthe 7. Residential Real Property Arbitration System ("Arbitration System") administered by National Centerfor Dispute Settlement 8. ("NCDS") and endorsed by the Minnesota Association of REALTORS® ("MNAR").The ARBITRATION AGREEMENT is 9. enforceable only ff it is signed by all buyers, sellers and licensees representing or assisting the buyers and the sellers. 10. The ARBITRATION AGREEMENT is not part of the Purchase Agreement Your Purchase Agreement will still be 11. valid whether or not you sign the ARBITRATION AGREEMENT. 12. The Arbitration System Is a private dispute resolution system offered as an alternative to the court system. It 13. Is not government sponsored. NODS and the MNAR Jointly adopt the rules that govern the Arbitration System. NCDS 14. and the MNAR are not affiliated. Under the ARBITRATION AGREEMENT you must use the arbitration services of 15. NCDS. 16. All disputes about or relating to disclosure of material facts affecting the use or enjoyment of the properly, excluding 17. disputes related to title Issues, are subject to arbitration under the ARBITRATION AGREEMENT- This includes claims 18. of fraud, misrepresentation, warranty and negligence. Nothing In this Agreement limits other rights you may have under 19. MN Statute 327A (statutory new home warranties) or under private contracts for warranty coverage. An agreement to 20. arbitrate,does not prevent a party from contacting the Minnesota Department of Commerce, the state agency that 21. regulates the real estate profession, about licensee compliance with state law. 22. The administrative fee for the Arbitration System varies depending on the amount of the claim, but it is more 23. than initial court filing fees. in some cases, conciliation court Is cheaper than arbitration. The maximum claim allowed 24. in conciliation court is $15,000.This amount is subject to future change. In some cases, it is quicker and less expensive 25. to arbitrate disputes than to go to court, but the time to file your claim and pre -hearing discovery rights are limited. The 26. right to appeal an arbitrator's award is very limited compared to the right to appeal a court decision. 27. A request for arbitration must be filed within 24 months of the date of the closing on the property or 28. else the claim cannot be pursued. In some cases of fraud, a court or arbitrator may extend the 24-month 29. limitation period provided herein. 30. A party who wants to arbitrate a dispute files a Demand, along with the appropriate administrative fee, with 31. NCDS. NCDS notifies the other party, who may file a response. NCDS works with the parties to select and appoint an arbitrator 32. to hear and decide the dispute. A three -arbitrator panel will be appointed instead of a single arbitrator at the request 33. of any party.The party requesting a panel must pay an additional fee. Arbitrators have backgrounds in law, real estate, 34. architecture, engineering, construction or other related fields. 35. Arbitration hearings are usually held at the home site. Parties are notified about the hearing at least 14 days 36.. in advance. A party may be represented by a lawyer at the hearing, at the party's own expense, If he or she gives five 37. (5) days advance notice to the other party and to NCDS. Each party may present evidence, including documents or 38. testimony by witnesses.The arbitrator must make any award within 30 days from the final hearing date.The award must 39. be in writing and may provide any remedy the arbitrator considers just and equitable that is within the scope of the 40. parties` agreement.The arbitrator does not have to make findings of fact that explain the reason for granting or denying 41. an award. The arbitrator may require the party who does not prevail to pay the administrative fee. 42. This Arbitration Disclosure provides only a general description of the Arbitration System and a general 43. overview of the Arbitration System rules. For specific information regarding the administrative fee, please see the 44. Fee Schedule located in the NCDS Rules. Copies of the Arbitration System rules are available from NCDS by calling 45. (866) 777-8119 or (866) 727-8119 or on the Web at www.ncdausa.org or from your REALTOIP. If you have any questions 46. about arbitration, call NCDS at (866) 777-8119 or (866) 727-8119 or consult a lawyer. MN:D5:ADRAA-1 (9(14) fac-ra'.0 REAL ESTATE DISCLOSURE ADDENDUM AND RELEASE Property Address' 5355 Oregon Avenue N, New Hope MN 55428 Buyer(s) and Buyers) Agent acknowledge that they are aware that due to possible water damage and/or excessive moisture mold, mildew and/or other microscopic organisms may be present within the subject property. Buyer(s) and Buyer(s) Agent are aware that exposure to certain species of mold may pose serious health risks, particularly in individuals with immune system deficiencies, allergies or respiratory problems, and young children and elderly persons. To the best of Seller's knowledge, no tests have been performed and no investigation undertaken in connection with mold fungal spores or my other microscopic' organisms that may be present within the subject property. Buyers) and Buyers(s) Agent acknowledge the property is being sold and conveyed "AS IS". Buyer(s) and Buyer(s) Agent further acknowledge that under the terms of the Contract of Sale. Buyer(s) have had, or will have had, prior to closing, full and timely opportunity to make a complete inspection of the subject property, including any environmental Inspection or investigation of the subject property. Buyer(s) and Buyer(s) Agent agree that the purchase price of the property reflects the agreed upon value of the property "AS IS", including the aforementioned disclosures. Buyer further acknowledges that Minnesota Statute 229.51 requires installation of a UL listed Carbon Monoxide alarm within 10 feet of any lawful sleeping area. Buyer assumes responsibility for installing aid alarms to comply with the law. Buyer is responsible for any water or utility reconnection fees. In the event that utilities are disconnected for any reason Seller will not reconnect or reactivate them. Seller has not made and does not make any express or implied representation or warranty of any kind with respect to the environmental condition of the subject property or whether it is in compliance with any local, state, or federal environmental law, code, or standard. Buyer(s) and Buyer(s) Agent hereby agree not to pursue any claim against Seller or its Agents for any violation of any such laws, codes, standards, or for cost incurred in conducting Investigations pursuant to such laws, codes, or standards. In addition, Buyers) and Buyer(s) Agent agree to fully and forever release, discharge and hold harmless Seller, its agents, employees, contractors, and representatives from and against any claims, damages, losses, costs or expenses of any kind sustained or arising directly or indirectly from or in connection with aW known or unknown con Rion of the subject property. Su er . �] a v Date � - 1 &_ Buyer Date Buyer Agent Z� 1 �L� Date Rev 2--ZM4 ADDENDUM TO PURCHASE AGREEMENT DISCLOSURE OF INFORMATION ON LEAD -BASED PAINT AND LEAD -BASED PAINT HAZARDS nds ivrm approved by the Minnesota AssocleUon of REALTORS', which dfeclafms any Fla biilly arlslno oui of use or misuse of this form, 02009 Minnesota Aaydatlon of REALTORSO, Edina, MN 1. Date �f8 2. Page 3. Addendum to Purchase Agreement between parties, dated , 20 �u 4. pertaining to the purchase and sale of the property at 5355 Oregon Avenue N, New Hope MN 55428 6. Section 1: Lead Warning Statement 7. Every buyer of any Interest In resicfenlist real property an which a residential dwelling was built prior to 1978 is notHled 6, that such properly may present exposure to lead from lead -based paint that may place young children at risk or 9. developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, inciuding 10. fearning disabilities, reduced Intelligence quoflent, behavioral problems and Impaired memory, Lead poisoning also 11, poses a particular risk to pregnant women. The seller of any Interest In residential real property is requited to provide 12, the buyer with any Information on lead based paint hazards from risk assessments or Inspections In the sellers 13. possession and notify the buyer of any known lead -based paint hazards. A risk assessment or Inspection for possible 14. lead -(used paint hazards is recommended prior to purchase. 15. 18. 17. i a. 19. 20. 21. 22. 23. 24. 25. 26. Disclosure (initial) (a) Presence of lead -based paint and/or lead -based paint hazards. (Check one below.) ❑ Known lead -based paint and/or lead -based paint hazards are present In the housing (explain): Seller has no knowledge of lead -based paint and/or lead -based paint hazards in the housing. Records and reports available to the sailer. (Check one below!) . ❑ Seller has provided Buyer with all available records and reports pertaining to lead -based paint and/or lead -based paint hazards In the housing (list documents below); 27. ® Seller has no reports or records pertaining to lead -based paint and/or lead -based paint hazards 28. in the housing. 28. er'a Acknowledgment (Initial) 30. (c) Buyer has received copies of all information listed under (b) above. 31. (d) Buyer has received the pamphlet, Protect Your Family from Lead In Your Horne. 32. (e) Buyer has (check one below); 33. ❑ Received a 10-day opportunity (or mutually agreed -upon period) to conduct a risk assessment 34. { or inspection for the presence of lead -based paint and/or lead -based paint hazards (if checked, 35. set Section 11 on page 2); or 36. Waived the opportunity to conduct a risk assessment or inspection for the presence of lead- 37. based paint and/or lead -based paint hazards. ._-.�.. � __r..���-r.--ram-- -- • •-�3'��:-�__� - .� .�_-�._.�• � _. ._�-.-,c��--��� TLX SALE-1 (aft) Seiler has not occupied or inspected the property DISCLOSURE STATEMENT: and makes no representations as to the condition SELLER'S DISCLOSURE ALTERNATIVES of the property. This form approved by the Minnesota Assodadon of REALTORS•, which disclaims any IlebW arldng out of use or misuse ofthis form. 02016 Minnesota Association of REALTORS', Edrne, MN 1. Date 2. Pagel of 7 pages: RECORDS AND 3. REPORTS, iF ANY, ARE ATTACHED AND MADE A 4. PART OF THIS DISCLOSURE 5. Property located at 5365 Oregon Avenue N 6. City of New Hope County of Hennepin , State of Minnesota. 7. NOTICE: Sellers of residential property, with limited exceptions, are obligated to satisfy the requirements of MN Statutes 8. 513.52 through 513,60. To comply whh the statute, Seller must provide either a written disclosure to the 9. prospective Buyer (see Disclosure Statement., Selleris Property Disclosure Statement) or satisfy one of the W. following two options. Disclosures made here, if any, are not a warranty or guarantee of any kind by Seller or 11. Iloensee(s) representing or assisting any party in this transaction and are not a substitute for any inspections or 12. warranties the party(ies) may wish to obtain. 13. (Selectom option only.) 14. 1) ❑ QUALIFIED THIRD -PARTY 1NSPEC11ON: Seller shall provide to prospective Buyer a written report that 15. discloses material Information relating to the real property that has been prepared by a qualified third party. 16. "Qualified third party' means a federal, state, or local governmental agency, or any person whom Seller or 17. prospective Buyer reasonably believes has the expertise necessary to most the Industry standards of practice 18. for the type of Inspection or Investigation that has been conducted by the third party In order to prepare the 19. written report. 20. Seller shall disclose to prospective Buyer material facts known by Seller that contradict any information 21. that Is Included In a written report, or material facts known by Seller that are not included In the 22. report. 23. The Inspection report was prepared by - 24. 26. and dated 120 26. Seller discloses to Buyer the following material facts (mown by Seller that contradict any information included 27. In the above referenced inspection report. 28. 29. - 31. Seller discloses to Buyer the following material facts known by Seller that are not included In the above 32. referenced Inspection report. 33. - -- 34. _ 35. 36. 2) ❑J WAIVER: The written disclosure required may be waived if Seller and prospective Buyer agree in writing. Seller 37. and Buyer hereby waive the written disclosure required under MN Statutes 513.52 through 513,60. 38. NOTE: If both Seller and prospective Buyer agree, In writing, to waive the written disclosure required under 39. MN Statutes 513.52 through 513.60, Seller is not obligated to disclose ANY material facts of which Seller 40. is aware that could adversely and significantly affect the Buyer's use or enjoyment of the property or any 41. intended use of the property, other than those disclosure requirements created by any other law. Seller Is 42. not obligated to update Buyer on any changes made to material fads of which Seller is aware that could 43. adversely and significantly affect the Buyer's use or enjoyment of the property or any intended use of the 44. property that occur, other than those disclosure requirements created by any other law. 45. Waiver of the disclosure required under MN Statutes 513.ti2 through 513.60 does not waive, llmit, or 46. abridge any obligattion for Seller disclosure crested by any other taw. MN:De:eDA-1 (SIG) Instaneir.:":r.is Seller has not occupied or inspected the property and makes no representations as to the condition DISCLOSURE STATEMENT: of the property. SELLER'S DISCLOSURE ALTERNATIVES 139. Page 4 140. Property located at 5355 Oregon Avenue N, New Hope MN 55428 141. H. NOTICE REGARDING CARBON MONOXIDE DETECTORS: 142. MN Statute 299F61 requires Carbon Monoxide Detectors to be located within ten (10) feet from all sleeping 143. rooms. Carbon Monoxide Detectors may or may not be personal property and may or may not be included In the 144. sale of the home. 145. I. WATER INTRUSION AND MOLD GROWTH: Studies have shown that various forms of water intrusion affect many 146. homes. Water intrusion may occur from exterior moisture entering the home and/or interior moisture leaving the 147. home. 148. Examples of exterior moisture sources may be 149. . Improper flashing around windows and doors, 150' a improper grading, 151. L flooding, 152. a roof leaks. 153. Examples of interior moisture sources may be 154. plumbing leaks, 155. condensation (caused by Indoor humidity that Is too high or surfaces that are too cold), 156. overflow from tubs, sinks, or toilets, 157. firewood stored indoors, 158. . humidifier use, i59. inadequate venting of kitchen and bath humidity, 160. improper venting of clothes dryer exhaust outdoors (Including electrical dryers), 161. Ilne-drying laundry Indoors, 162. d houseplants -watering them can generate large amounts of moisture, 163. In addition to the possible structural damage water Intrusion may do to the property, water intrusion may also result 164. In the growth of mold, mildew, and other fungi. Mold growth may also cause structural damage to the property. 165. Therefore, It Is very important to detect and remedlate water intrusion problems. 166. Fungi are present everywhere in our environment, both Indoors and outdoors. Marry molds are beneficial to humans. 167. However, molds have the ability to produce mycotoxins that may have a potential to cause serious health problems, 168. particularly in some Immunocompromised individuals and people who have asthma or allergies to mold. 169. To complicate matters, mold growth is often difficult to detect, as It frequently grows within the wall structure. if you 170. have a concern about water intrusion or the resulting mold/mlldew/fungi growth, you may want to consider having 171. the property inspected for moisture problems before entering Into a purchase agreement or as a condition of your 172. purchase agreement. Such an analysis Is particularly advisable If you observe staining or any musty odors on the 173. property. 174. J. NOTICE REGARDING PREDATORY OFFENDER INFORMATION: Information regarding the predatory 175. offender registry and persons registered with the predatory offender registry under MN Statute 243.166 176. may be obtained by contacting the local law enforcement offices In the community where the property Is 177. located or the Minnesota Deportment of Corrections at(651)301 7200, or from the Department of Corrections 178. web site at www cometate.mmus. WDRSDA-4 (8/M) lnstonetr�' "M 00h Itadon in Real Estate Transactions All Minnesota homes can have dangerous levels of radon gas. Radon is a colorless, odorless and tasteless radioactive gas that can seep Into homes from the soil. When inhaled, it can damage the lungs. long-term exposure to radon can lead to lung cancer. About 21,000 lung cancer deaths each year In the United States are caused by radon. The only way to know how much radon gais has entered the home is to -conduct a radon test. MDH estimates 2 in 5 homes exceed the 4.0 pCl/L action level. Whether a home is old or new, any home can have high levels of radon. The purpose of this publication is to educate and Inform potential home buyers of the risks of radon exposure, and how to test for and reduce radon as part of real estate transactions. Disclosure fteggitqwAnts Effective January 1, 2014, the Minnesota Radon Awareness Act requires specific disclosure and education be provided to potential home buyers during residential real estate transactions in Minnesota. Before signing a purchase agreement to sell or transfer residential real property, the seller shall provide this publication and shall disclose in writing to the buyer: 1. whether a radon test or tests have occurred on the property; 2. the most current records and reports pertaining to radon concentrations within the dwelling; 3. a description of any radon levels, mitigation, or remediation; 4. Information on the radon mitigation system, if a system was installed; and 5. a radon warning statement. Radon Facts How dangerous is radon? Radon is the number one cause of lung cancer in non-smokers, and the second leading cause overall. Your risk for lung cancer increases with higher levels of radon, prolonged exposure, and whether or not you are a current smoker or former smoker. Where is your greatest exposure to radon? For most Minnesotans, your greatest exposure Is at home where radon can concentrate Indoors. What is the recommended action based on my results? If the average radon in the home is at or above 4.0 pCl/L, the home's radon level should be reduced. Also, consider mitigating If radon levels are between 2.0 pCl/L and 3.9 pCi/L. Any amount of radon, even below the recommended action level, carries some risk. n-k' Minnesota Department of Health INDOOR AIR UNIT MDH Radon program PO Box 64975 St Paul, MN 55164-0975 health.indoor@state.mn.us www.health.state.mn.us/radon 651-201-4601 800-798-9050 lnstoneti,ci.v, ADDENDUM TO PURCHASE AGREEMENT: BUYER PURCHASING "AS IS" AND LIMITATION OF SELLER LIABILITY This form approved by the Minnesota Association of REALTORSO, which disdalms any Ileblllty arising out of use or misuse of this form. 02015 Minnesota Ass��ation of REALTORS*, Erin, MN 1. Date 2. Page 13 3. IN THE EVENT SELLER HAS COMPLETED, AND BUYER HAS RECEIVED, A 4. SELLER'S PROPERTY DISCLOSURE STATEMENT, DO NOT USE THIS s. ADDENDUM WITHOUT FIRST SEEKING LEGAL ADV CE. 6. Addendum to Purchase Agreement between parties, dated 3 , 20 18 , 7. pertaining to the purchase and sale of the Property located at 5355 Oregon Avenue N, New Hope MN 55428 A 9. l.imltafion of Seller 1-{abiiily: The Property is being sold in its existing condition. Buyer acknowledges that the Property, 10. including all improvements, is being sold on an "As -Is" and "Where -Is" basis, with all existing faults. Prior to closing, 11. Buyer will make such inspections of the Property as are consistent with the terms of this Purchase Agreement in order 12. to satisfy Buyer as to the condition of the Property. The Seller warranties contained In the Purchase Agreement shall 13. remain unmodified by this Addendum. 14. The "Risk of Loss" provisions of the Purchase Agreement (lines 156-161) shall remain unmodified by this Addendum. 15. Seller and Buyer shall execute a Sellers Disclosure Alternathes with the NVaiver" section completed. Seller remains 16. obligated to make "Other Required Disclosures" In the Disclosure Statement., Seller's Disclosure Alernadves. Except 17. for "Other Required Disclosures; Buyer acknowledges that Seller has not made any oral or written representations 18. regarding the condition of the Property subject to this Purchase Agreement. By aocepttng delivery of the deed at closing, 19. Buyer will be deemed to have accepted the condition of the Propertysubject to this Purchase Agreement as satisfactory 20. to Buyer, and Seller shall have no liability with respect to the condition of such Property. Buyer waives any claims 21. related in any way to the condition of the Property. 22. WA NI G: THIS ADDENDUM WILL AFFECT THE LEGAL RIGHTS OF BUYER 23. AND SELLER. BUYER AND SELLER ARE STRONGLY ENCOURAGEDTO OBTAIN 24. LEGAL ADVICE BEFORE AGREEING TO THIS ADDENDUM. 25.5�� j (Sellers Slgnaturs) (Date) (Buyers signature) (Date) (Sellers S [tire) / r+ �. (Date) (Buyer% Signature) (Date) 27. THIS IS A LEGALLYBINDINGCONTRACT BETWEEN BUYER(S) AND SELLER(S). 28. IFYOU DESIRE LEGAL ORTAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. MN:APA:AI ( elf 5) W- A" NEW HOPE, MN >>-> > >-7 -- — — — — — — —_— S89045'25"W 86.8 20' setback PARCE 'S z PARCEL i / a- ----- 17. —UH/ 5 go — — — -Cj' utili eassmen'^ IAOHP /OHP �— QHP — rone N6�Q 0 60 1 INCH = 40 FEET I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION, OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED PROFESSIONAL LAND SURVEYOR UNDER THE LAWS OF THE STATE OF MINNESOTA. PRINT NAME: DANIEL J ROEBER SIGNATURE: D DATE MARCH 29, 2018 LIC. NO. 43133 V802 p/� Sta ntec St. Paul Office SURVEY V802.dwg DRAWN 2335 West Highway 36 DJR Saint Paul, MN 55113 PROJ. NO. Phone: 651-636-4600 Fax: 651-636-1311 Website:www.stantec.com 193804300 City of New Hope Single -Family Acquisition and Demolition-- Scattered Site Housing Program Total Project Cost and Total Funding Sources USES Amount Acquisition 170,000 Demolition 15,000 Real Estate Taxes 1,200 Legal/Closing - Purchase 2,000 Install Sewer and Water 2nd Lot 5,500 Power Line Re -location 10,000 Demo Survey 650 Legal/Closing - Sale 2,000 Curb -cut removal 2,500 Engineering/Survey 5,000 Total 213,850 SOURCES Amount EDA (lot sale proceeds) 110,000 Total 110,000 5355 Oregon Avenue New Hope MN, 55428 4/4/2018 NorthstarMLS Matrix Property/Agent Full Display, Single Family Residential, MLS #: 4918873 Type: For Sale 5355 Oregon Avenue N, New Hope MN 55428 Status: Pending List Price: $159,900 13?vwm 1/15 Total Bed/Bath: 2/ 2 Garage: 2 Year Built: 1952 Original List Price: $159,900 BROADWAY LIONS PAR J Z c t _z L BECKER 53rd A.e N Z 5:_'r�d Avo N • ' • Map data @2018 Google Map Page: 91 Map Coord: D2 Directions: Hwy 169 to Bass Lake Rd, east to Nevada Ave, south to St Raphael Dr, turn right, property is located on the corner of St Raphael & Oregon Style: (SF) One Story TAX INFORMATION Const Status: Previously Owned Property ID: 0511821340061 Foundation Size: 947 Tax Year: 2018 AbvGrdFinSgFt: 947 Tax Amt: $2,168 Total Fin SgFt: 947 Assess Bal: $111 Acres: 0.35 Tax w/assess: $2,279 Lot Size: Irregular Assess Pend: Unknown Yearly/Seasonal: Yearly Homestead: Yes List Date: 03/22/2018 Received By MLS:03/22/2018 Days On Market:5 PDOM: 5 CDOM: Off Market Date: 03/27/2018 Selling Agent: Anthony J. Hawk Projected Close Date,, 04/26/2018 Selling Office: Hawk Realty Company General Property Information Legal Description: LOT 001 BLOCK 002 SUNSET HEIGHTS County: Hennepin Postal City: New Hope School District: 281 - Robbinsdale, 763-504-8000 Manufactured Home?No Complex/Dev/Sub: Sunset Heights Common Wall: No Lot Description: Tree Coverage - Light, City Bus (w/in 6 bilks) Road Frontage: City Zoning: Residential -Single Accessibility: None Remarks Agent Remarks: Mult Offers H&B due 3-26 Click on supplement link for required contract and Mult Offer Form. Sold as -is. No warranties. Agents to verify all info. Email all offers to gjohnson@therealtyhouse.com. Local bank, fast decisions. Basement is crawl space. Public Remarks: Just move in! One level living, new carpet, vinyl, interior paint, kitchen appliances. Detached double garage, wood fence, patio, priced to sell! Local bank, fast decisions. Sold as -is. No warranties. Structure Information Room Level Dimen Other Rooms Level Dimen Heat: Forced Air Living Rm Main 19x11 Laundry Main 12x06 Fuel: Natural Gas Dining Rm Patio Main 16x10 Air Cond: Central Family Rm Main 11x10 Water: City Water/Connected Kitchen Main 16x08 Sewer: City Sewer/Connected Bedroom 1 Main 11x10 Garage: 2 Bedroom 2 Main 11x10 Bathrooms Oth Prkg: Bedroom 3 Total: 2 3/4: 0 1/4: 0 Pool: None Bedroom 4 Full: 1 1/2: 1 hftps:Hmatrix.northstarmis.com/Matrix/Public/DisplaylTQPopup.aspx?iid=1 &did=17697&params=150%20NzQyNjgyMQ))&pbs=1 &L=1 &exk=e521846983c365eb7E 4/4/2018 NorthstarMLS Matrix Bath Description: Main Floor Full Bath, Main Floor 1/2 Bath Dining Room Desc: Living/Dining Room Family Room Char: Main Level Fireplaces: 0 Fireplace Characteristics Appliances: Range, Microwave, Dishwasher, Refrigerator Basement: Crawl Space Exterior: Vinyl Fencing: Wood, Partial Roof: Asphalt Shingles, Pitched Amenities -Unit: Patio, Natural Woodwork, Kitchen Window, Washer/Dryer Hookup Parking Char: Detached Garage Special Search: Main Floor Bedroom Financial Cooperating Broker Compensation Buyer Broker Comp: 2.7 % Sub -Agent Comp: 0 % Facilitator Comp: 0 Variable Rate: N List Type: Exclusive Right Sellers Terms: FHA, DVA, Conventional, Cash Existing Financing: Free and Clear In Foreclosure?: No Lender Owned?: Yes Potential Short Sale?: No Owner is an Agent?: No Contact Information Listing Agent: Garth H Johnson 952-844-1511 Appointments: ShowingTime Listing Office: The Realty HouseThe Realty House Office Phone: 952-831-3201 MLS #: 4918873 Address: 5355 Oregon Avenue N , New Hope, MN 55428 https://matrix.northstarmis.com/Matrix/Public/DisplaylTQPopup.aspx?iid=1 &did=17697&params=150%20NzQyNjgyMQ))&pbs=1 &L=1 &exk=e521846983c365eb7E 4/4/2018 NorthstarMLS Matrix 5355 Oregon Avenue N , New Hope, MN 55428 MLS Number: 4918873 M 08.21.2011 ��:� IS:OM https://matrix.northstarmis.com/Matrix/Public/PhotoPopup.aspx?n=15&i=0&L=1 &tid=1 &key=7426821 &mtid=1 &pbs=1 &View=G 1/3 4/4/2018 5355 Oregon Avenue N , New Hope, MN 55428 MLS Number: 4918873 NorthstarMLS Matrix https://matrix.northstarmis.com/Matrix/Public/PhotoPopup.aspx?n=15&i=0&L=1 &tid=1 &key=7426821 &mtid=1 &pbs=1 &View=G 3/3 NorthstarMLS Matrix 4/4/2018 5355 Oregon Avenue N , New Hope, MN 55428 MLS Number: 4918873 1 tk i ' 08.21. a� Ilk https://matrix.northstarmis.com/Matrix/Public/PhotoPopup. aspx? n= 1 5&i =0 &L= 1 &tid=1 &key=7426821 &mtid=1 &pbs=1 &View=G 2/3 MULTIPLE OFFER PROCEDURE FORM If you fail to execute and return this document, the seller may not consider your offer. DATE: 03/23/18 PROPERTY ADDRESS: 5355 Oregon Avenue N New Hope MN 55428 OF' CROR NAME(S) "� - f (-`rl u •ty rr.", Q �t s�y �; . / nt'r SELLING AGENT & BROKER_ � ���� F�"�'k I��•�`�y Dear Offeror: WE ARE INVOLVED IN A MULTIPLE OFFER SITUATION ON THE ABOVE REFERENCED PROPERTY. All offers will be considered subject to the following. 1: All offers must be in writing -no verbal offers will be accepted 2: The listing Agent must receive your written "best' offer no later than DEADLINE: 03/26/18 Q 10:00AM —Late ofI'erlwill be back no offers ouly. 3: The Listing Agent will facsimile all "best' offers to Sellers authorized representative no later than close of business that day. 4: The following terms and conditions shall be applicable to you and to any offer you wish to submit: a) Seller shall have sole and absolute discretion to accept or reject any offer received. Seller is not required to accept any particular offer, regardless of its terms, and has the absolute right and discretion to reject all offers. b) Subsequent to receipt of of ers, Seller shall have the absolute right to deal with any broker and/or one or more offerors to further negotiate the terms and conditions of any offer. In so doing, seller shall have no obligation to negotiate or communicate with each and every other offeror, or with any offeror. c) Under no circumstances shall verbal communications between an offeror and seller or any agent or broker constitute or create an obligation on the part of the seller to sell the property to any one under any terms. d) The acceptance of any offer shall be conditioned upon the subsequent execution by the offeror and seller of a written contract of We, including all required addenda and setting forth terms and conditions satisfactory to the seller. The seller shall have no obligation to sell the property unless and until such written contract is fully executed 5: In the event an accepted offer does not result in a closed escrow, seller reserves the right to re -open negotiations with any offeror and/or seller may request listing agent to solicit new offers. Please sign below to acknowledge your understand and acceptance of these terms and procedures and return this form to the listing broker no later than the time designated for the transmittal of offers. Failure to transmit such acceptance may prevent your offer from being considered. ACKNOWLEDGED AIND AGREED W DATE The bu er bgEloll fled that mELdpig offers were received and check orre ❑ The buyer has rescinded the offer to purchase. An offer termination is attached. ❑ The buyer's offer remains the same. ❑ The buyer chooses to revise the previously submitted offer. A new offer is attached.