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IP #1022 destroy 2029PROJECT NO. 1022 7311 62nd Avenue North EDA Res. 5/14/18 Resolution approving purchase agreement for the acquisition of 7311 62nd Avenue North 2018-06 (improvement project no. 1022) EDA Res. 8/13/18 Resolution approving contract with Nitti Rolloff Services, Inc. for hazardous material 2018-12 abatement, demolition of site improvements, utility work, tree removal, well sealing, and site grading of 7311 62nd Avenue North (improvement project no. 1022) EDA Res. 9/10/18 Resolution approving purchase and redevelopment agreement with Houston Homes, Inc. 2018-16 for the sale of 7311 62nd Avenue North (Improvement Project No. 1022) PURCHASE AND REDEVELOPMENT AGREEMENT This Purchase and Redevelopment Agreement ("Agreement") is made by and between HOUSTON 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 October r5t, 2018. 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 7311 62nd Avenue North, New Hope, Minnesota, and legally described in the attached Exhibit A ("the "Property"). 1. Purchase Price. The purchase price for the Property is Fifty -Five Thousand and No/l00 Dollars ($55,000.00) (the "Purchase Price"), which Buyer shall pay as follows: an initial payment of Two Thousand and No/100 Dollars ($2,000.00) (the "Earnest Money"), which sum shall be paid to Seller upon Buyer and Seller's execution of this Agreement and Fifty - Three Thousand and No/100 Dollars ($53,000.00) payable by wire, cashier's check or cash on the "Date of Closing", as that term is defined in paragraph 6 below. There are no items of personal property or fixtures included in this sale. 2. Title Conveyed. On the Date of Closing, Seller shall deliver a Quit Claim Deed (the "Deed") to Buyer conveying marketable title of record, free and clear of liens, encumbrances, assessments, and restrictions, except for the "Permitted Encumbrances" set forth on Exhibit B 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 a wells that were sealed by Seller as shown on the attached Exhibit C. 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. 1 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 home 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 home on the Property will be sold to owner - occupants. An "owner -occupant" shall be defined as an individual(s) that purchases the home from Buyer by warranty deed or a contract for deed and intending to reside in the home as a primary residence. To insure the intent of the parties that the home constructed on the Property is purchased by an owner - occupant, Buyer will record restrictive covenants and assessment agreement against the Property prohibiting the leasing of the home for a period of twelve (12) months after the sale of such home by Buyer to an owner -occupant of the home. The restrictive covenants and assessment agreement shall be substantially in the form of the documents attached hereto as Exhibits D and E, 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 home as their primary residence in compliance with the restrictive covenants described herein in the form attached as Exhibit D. 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 Midland Title ("Title Company") and covering title to the Property, in the amount of the Purchase Price. Buyer agrees to pay the costs associated with the preparation and issuance of the Commitment; Buyer shall pay the premium for the owner's policy, if any, and the lender's policy, if any, along with the price for any endorsements requested by Buyer or Buyer's lender. b. Buyer shall have fifteen (15) days after receipt of the Commitment to review and approve the title to the Property and to object to any exception to title that is disclosed in the Commitment or which is otherwise discovered by Buyer. In the event that Buyer does not within such fifteen (15) day period give notice to Seller objecting to any such exceptions, then all such exceptions shall be deemed approved and shall be considered a part of the Permitted Encumbrances. If Buyer timely objects to an exception to title, 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. k�l 6. Closing. a. Closing shall occur on or before October 31, 2018 (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, if any, utilized to close the transaction contemplated by this Agreement. General real estate taxes payable in the year of closing shall be prorated by Seller and Buyer as of the closing date based upon a calendar year. Each party shall pay its own attorney's fees. 8. Condemnation. If, prior to the Date of Closing, all or any part of the Property shall be condemned by governmental or other lawful authority, Buyer shall have the option of (a) completing the purchase contemplated by this Agreement, in which event all condemnation proceeds or claims thereof shall be assigned to Buyer, or (b) canceling this Agreement, in which event the Earnest Money shall be refunded and this Agreement shall be terminated with neither party having any rights against or obligations to the other except rights or obligations under this Agreement which provide for continued exercise following closing or cancellation or other termination of this Agreement, and Seller shall be entitled to any and all condemnation proceeds. 9. Construction of Home. Buyer agrees that it will construct a new single family home on the Property. This covenant shall survive the delivery of the Deed. 4 a. The single family home described in this paragraph is referred to as the "Minimum Improvements." b. The Minimum Improvements shall consist of one new single family home, and shall be constructed substantially in accordance with the RFP Guidelines attached as Exhibit F and the proposal approved by Seller on September 10, 2018 attached as Exhibit G. 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. 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 subj ect 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 6 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 home, (b) it will not seek exemption from real estate taxes on the Property under State law, and (c) it will not transfer or permit transfer of the Property to any entity whose ownership or operation of the property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of New Hope or Seller in accordance with this Agreement). The covenants in this paragraph run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for at least 30 years after the Date of Closing. g. Buyer shall comply with all recommendations of the City Engineer. h. Buyer's construction plans shall be approved by the City Building Official. 10. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to Buyer and prior to receipt by Buyer of the Certificate of Completion of the Minimum Improvements, Buyer fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from Seller to Buyer to do so, then Seller shall have the right to re-enter and take possession of the Property and to terminate (and revert in Seller) the estate conveyed by the Deed to Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of Buyer and failure on the part of Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, 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: Houston Homes, Inc. 9020 Willowby Crossing Maple Grove, MN 55311 with copy to: 13. No Broker Involved. Seller and Buyer represent and warrant to each other that there is no broker involved in this transaction with whom it has negotiated or to whom it has agreed to pay a broker commission. Buyer agrees to indemnify Seller for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or 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. 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 OPE By: K:athi k n Its: President Dated: October, 2018 y: 1t1 �& Kirk McDonald Its: Executive Director Dated: October, 2018 STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) BUYER: HOUSTON HOMES, Inc. By: Matt Houston Its: President Dated: October. / x'', 2018 The foregoing instrument was acknowledged before me this r day of October, 2018, 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 Mhuiesota Notary Public OW ' LE use set{dxa ungss�wwoJ Kvv K• B;OBBUUf�IMjti71�L�ild hEr:;�� 4 i 3NO31 r 31H-940A 10 STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this day of October, 2018, by Matt Houston, the President of Houston Homes, Inc., a Minnesota corporation, on behalf of said corporation. VALERIE J LEONE 0-7) Notary Public -Minnesota My Com nisslon Expires Jon 31, 2020 DRAFTED BY.• Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, #201 Brooklyn Park, MN 55443 (763) 424-8811 6-11 Notary Public 11 Exhibit A Legal Description See attached. 12 Exhibit B Permitted Encumbrances Restrictions, reservations, covenants and easements relating to use or improvement of the Property without effective forfeiture provisions of record on the Effective Date; 2. Building and zoning laws, ordinances, city, state and federal regulations; 3. Governmental regulations, if any, affecting the use and occupancy of the Property; 4. All rights in public highways upon the land; 5. Easements for public rights -of -way and public and private utilities, which do not interfere with present improvements; 6. Reservations to the State, in trust for the taxing districts concerned, of minerals and mineral rights in those portions of the Property the title to which may have at any time heretofore been forfeited to the State for nonpayment of real estate taxes. 7. The lien of unpaid special assessments, if any, not presently payable but to be paid as a part of the annual taxes to become due; 8. The lien of unpaid real estate taxes, if any, not presently payable but to be paid as part of the annual taxes to become due. 13 See attached. Exhibit C Well Sealing Certificate 14 Exhibit D Restrictive Covenants See attached. 15 Exhibit E Assessment Agreement See attached. 16 Exhibit F Request for Proposal ("RFP") Guidelines See attached. 17 Exhibit G Buyer's Proposed Plans See attached. P:\Attorney\SAS\l Client Files\2 City of New Hope\99-11424 7311 62nd Ave. N\Purchase and Redevelopment Agreement 7311 62nd.docx 18 0� 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 7 Agenda Title Resolution approving purchase and redevelopment agreement with Houston Homes, Inc. for the sale of 7311 62nd Avenue North (improvement project no. 1022). Requested Action Staff requests that the EDA approve a resolution approving the purchase and redevelopment agreement for the sale of the EDA-owned property located at 7311 62nd Avenue North. Policy/Past Practice Proposals for the redevelopment of EDA-owned scattered site lots are reviewed by the EDA prior to executing a contract with the preferred buyeribuilder. Background Staff sent Request for Proposals (RFPs) to more than 20 builders marketing the lot located at 7311 62nd Avenue. The non-negotiable sales price was set at $55,000. The EDA received proposals from the following three builders: Tollberg Homes, LLC Novak -Fleck, Inc. (submitted two separate proposals) Houston Homes, Inc. Staff reviewed the proposals with the city manager and designated Houston Homes as the "preferred by staff" builder. However, staff would like to review the base characteristics and attributes of each proposed home to ensure that all proposals are considered by the EDA. The base criteria listed below were used by staff to assess each proposal. Houston Homes Overview • Split -entry home design • Above -average curb appeal • High-level trim package for the cabinets, flooring, doors, and fixtures • Gas fireplace on lower level • Four bedrooms • Three -car garage • Two full bathrooms • 2,000 finished square feet • Typical exterior finishes, vinyl siding with cultured stone accents • Anticipated sales price = $299,900 I:\RFA\COMMDEV\2018\EDA\9-10-18\731162nd\RFA-Sale of Lot at731162nd 9-10-18 Project 1022.docx Request for Action, Page 2 Tollberg Homes Overview • Split -entry home design • Above -average curb appeal ■ Mid -level trim package for cabinets, flooring, doors, and fixtures • Four bedrooms • Two -car garage • Two full bathrooms • 1,850 finished square feet • Typical exterior finishes, vinyl siding with cultured stone accents • Anticipated sales price = $300,000 Novak -Fleck Overview (Option 1) • Split -entry home design • Above -average curb appeal • Mid -level trim package for cabinets, flooring, doors, and fixtures • Three bedrooms ■ Two -car garage • One full bath, and one 3/4 bath • 1,745 finished square feet • Typical exterior finishes, vinyl siding with cultured stone accents • Anticipated sales price = $285,000 Novak -Fleck Overview (Option 2) ■ Split -entry home design • Average curb appeal • Mid -level trim package for cabinets, flooring, doors, and fixtures • Three bedrooms • Three car garage • One full bath, and one 3/4 bath • 1,963 finished square feet • Typical exterior finishes, vinyl siding with cultured stone accents • Anticipated sales price = $299,500 Summary Rationale for Selecting Houston Homes In the opinion of staff, all four proposals are very similar, and it was difficult to select a clear leader from the group. However, staff believes that the following characteristics of the Houston Homes proposal set it apart from the others: • Largest amount of finished square feet • Three -car garage • Four bedrooms • High-level trim package for the cabinets, flooring, doors, and fixtures ■ Unique amenities, such as the gas fireplace Request for Action, Page 3 A very competitive anticipated sales price of $299,000 Experience with Recommended Builder The EDA has not previously sold a scattered site lot to Houston Homes. Houston Homes is a moderate sized builder/developer that has recently built several high -end homes in the cities of Monticello, Maple Grove, and Hanover. Development Agreement and Next Steps Staff has worked with the city attorney and the buyer to draft a purchase and redevelopment agreement for the sale of the lot. The agreement ensures that the provisions set forth in the RFP will be met and sets the purchase price of the lot at $55,000. The agreement included in the attachments is considered complete by staff and the city attorney. However, some minor revisions may be necessary once fully reviewed by the buyer. Any substantial changes to the agreement would be brought to the EDA for approval. Once the agreement is fully executed, staff anticipates that the closing of the lot sale will take place in October, 2018. Recommendation Staff recommends that the EDA approve the resolution approving the purchase and redevelopment agreement for the sale of 7311 62nd Avenue North to Houston Homes, Inc. Attachments • Resolution • Proposals • RFP for Lot Sale • Draft Purchase and Redevelopment Agreement CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 18-16 RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH HOUSTON HOMES, INC. FOR THE SALE OF 7311 62ND AVENUE NORTH (IMPROVEMENT PROJECT NO. 1022) 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 7311 62nd Avenue North, New Hope, MN, and legally described in the attached Exhibit A (the "Property") on May 31, 2018, with the intention of razing the existing house and all site improvements in preparation of the sale of the lot for the construction of a new single family home; and WHEREAS, in response to a Request for Proposal ("RFP") sent by New Hope City staff to various builders, the EDA received an offer from Houston Homes, Inc. a Minnesota corporation ("Houston Homes") regarding the sale and redevelopment of the Property; and WHEREAS, the EDA arrived at an agreement with Houston Homes, to sell the Property for the purchase price of $55,000.00 upon all of the terms set forth in the RFP; and WHEREAS, the EDA has accepted Houston Homes' offer and has presented a draft of the Purchase and Redevelopment Agreement to Houston Homes, for its review, a copy of which is attached hereto as Exhibit B ("Purchase and Redevelopment Agreement") and incorporated herein by reference; and WHEREAS, it is in the best interest of the EDA to sell the Property to Houston Homes for the sum of $55,000.00, in order for Houston Homes to redevelop and build a new single family home on the Property in accordance with the City's scattered site housing program and policy; and WHEREAS, the City staff is hereby seeking approval from the EDA of the Purchase and Redevelopment Agreement, subject to other terms relating to the closing on the sale of the Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. That the sale of the Property by the EDA to Houston Homes, for the purchase price of $55,000.00, with other terms and conditions as set forth in the Purchase and Redevelopment Agreement attached hereto as Exhibit B, is approved subject to the review and approval by the City Attorney of the final language and exhibits to the Purchase and Redevelopment Agreement relating to the closing on the sale of the Property, it being in the best interest of the EDA to sell the Property for redevelopment and construction. of a single-family home in accordance with the City's scattered site housing program and policy. 3. The EDA shall use due diligence for selling the Property to Houston Homes, for the construction of a single-family home, so as to return the Property to the tax rolls for the benefit of all taxing jurisdictions. 4. The President, Executive Director and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the sale of the Property in accordance with the Purchase and Redevelopment Agreement. Dated the 1 Oth day of September 2018. Attest: Kirk McDonald, Executive Director Kathi H31 er en, Preis -dent PURCHASE AND REDEVELOPMENT AGREEMENT This Purchase and Redevelopment Agreement ("Agreement") is made by and between HOUSTON 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 September , 2018. 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 7311 62nd Avenue North, New Hope, Minnesota, and legally described in the attached Exhibit A ("the "Property"). 1. Purchase Price. The purchase price for the Property is Fifty -Five Thousand and No/100 Dollars ($55,000.00) (the "Purchase Price"), which Buyer shall pay as follows: an initial payment of Two Thousand and No/l00 Dollars ($2,000.00) (the "Earnest Money"), which sum shall be paid to Seller upon Buyer and Seller's execution of this Agreement and Fifty - Three Thousand and No/100 Dollars ($53,000.00) payable by wire, cashier's check or cash on the "Date of Closing", as that term is defined in paragraph 6 below. There are no items of personal property or fixtures included in this sale. 2. Title Conveyed. On the Date of Closing, Seller shall deliver a Quit Claim Deed (the "Deed") to Buyer conveying marketable title of record, free and clear of liens, encumbrances, assessments, and restrictions, except for the "Permitted Encumbrances" set forth on Exhibit B 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 a wells that were sealed by Seller as shown on the attached Exhibit C. 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. 1 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 home 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 home on the Property will be sold to owner - occupants. An "owner -occupant" shall be defined as an individual(s) that purchases the home from Buyer by warranty deed or a contract for deed and intending to reside in the home as a primary residence. To insure the intent of the parties that the home constructed on the Property is purchased by an owner - occupant, Buyer will record restrictive covenants and assessment agreement against the Property prohibiting the leasing of the home for a period of twelve (12) months after the sale of such home by Buyer to an owner -occupant of the home. The restrictive covenants and assessment agreement shall be substantially in the form of the documents attached hereto as Exhibits D and E, 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 home as their primary residence in compliance with the restrictive covenants described herein in the form attached as Exhibit D. 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 Midland Title ("Title Company") and covering title to the Property, in the amount of the Purchase Price. Buyer agrees to pay the costs associated with the preparation and issuance of the Commitment; Buyer shall pay the premium for the owner's policy, if any, and the lender's policy, if any, along with the price for any endorsements requested by Buyer or Buyer's lender. b. Buyer shall have fifteen (15) days after receipt of the Commitment to review and approve the title to the Property and to object to any exception to title that is disclosed in the Commitment or which is otherwise discovered by Buyer. In the event that Buyer does not within such fifteen (15) day period give notice to Seller objecting to any such exceptions, then all such exceptions shall be deemed approved and shall be considered a part of the Permitted Encumbrances. If Buyer timely objects to an exception to title, 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 October , 2018 (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, if any, utilized to close the transaction contemplated by this Agreement. General real estate taxes payable in the year of closing shall be prorated by Seller and Buyer as of the closing date based upon a calendar year. Each party shall pay its own attorney's fees. 8. Condemnation. If, prior to the Date of Closing, all or any part of the Property shall be condemned by governmental or other lawful authority, Buyer shall have the option of (a) completing the purchase contemplated by this Agreement, in which event all condemnation proceeds or claims thereof shall be assigned to Buyer, or (b) canceling this Agreement, in which event the Earnest Money shall be refunded and this Agreement shall be terminated with neither party having any rights against or obligations to the other except rights or obligations under this Agreement which provide for continued exercise following closing or cancellation or other termination of this Agreement, and Seller shall be entitled to any and all condemnation proceeds. 9. Construction of Home. Buyer agrees that it will construct a new single family home on the Property. This covenant shall survive the delivery of the Deed. 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 F and the proposal approved by Seller on September 10, 2018 attached as Exhibit G. 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 byway of security for, and only for, the purpose of obtaining construction, interim or 5 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 home, (b) it will not seek exemption from 'real estate taxes on the Property under State law, and (c) it will not transfer or permit transfer of the Property to any entity whose ownership or operation of the property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of New Hope or Seller in accordance with this Agreement). The covenants in this paragraph run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for at least 30 years after the Date of Closing. g. Buyer shall comply with all recommendations of the City Engineer. h. Buyer's construction plans shall be approved by the City Building Official. 10. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to Buyer and prior to receipt by Buyer of the Certificate of Completion of the Minimum Improvements, Buyer fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from Seller to Buyer to do so, then Seller shall have the right to re-enter and take possession of the Property and to terminate (and revert in Seller) the estate conveyed by the Deed to Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of Buyer and failure on the part of Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, 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: Houston Homes, Inc. 9020 Willowby Crossing Maple Grove, MN 55311 with copy to: 13. No Broker Involved. Seller and Buyer represent and warrant to each other that there is no broker involved in this transaction with whom it has negotiated or to whom it has agreed to pay a broker commission. Buyer agrees to indemnify Seller for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Seller. 14. Remedies. If Buyer defaults under this Agreement, Seller shall have the right to terminate this Agreement by giving written notice to Buyer as provided by law. If Buyer fails to cure such default as provided by law, this Agreement will terminate, and upon such termination Seller will retain the Earnest Money and neither party shall have any rights or obligations against the other except rights or obligations under this Agreement which provide for continued exercise following the cancellation or other termination of this Agreement. If Seller defaults under this Agreement, Buyer's only remedy shall be to terminate the Agreement and recover the Earnest Money paid to Seller. Buyer shall not have any right to the remedy of specific performance 15. Assignment/Prohibition Against Transfer of Property. Buyer may not assign its rights and obligations hereunder without the prior written consent of Seller, which consent may be granted or withheld by Seller in its sole discretion. 16. Miscellaneous. This Agreement shall be governed by the laws of the State of Minnesota. No amendment of this Agreement shall be valid or binding unless executed by authorized representatives of both Seller and Buyer. The headings and captions of this Agreement are for the convenience of the parties only and shall not be looked to in the interpretation or enforcement of this Agreement. Seller and Buyer acknowledge and agree that each has had opportunity to participate in the drafting of this Agreement and accordingly acknowledge and agree that this Agreement as a whole and each of is clauses are not to be interpreted in favor of or against either party. This Agreement may be signed in counterpart, with each copy of the Agreement binding upon the signing party at the time of signing and together which shall constitute a single document. 17. Survival. The Parties representations contained herein shall survive the delivery of the Deed. IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the above date ("Effective Date"). SELLER: BUYER: ECONOMIC DEVELOPMENT HOUSTON HOMES, Inc. AUTHORITY IN AND FOR THE CITY OF NEW HOPE By: By: Kathi Hemken Its: President Dated: September 52018 By: Kirk McDonald Its: Executive Director Dated: September , 2018 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) Matt Houston Its: President Dated: September_, 2018 The foregoing instrument was acknowledged before me this day of September, 2018, by Kathi Hemken and Kirk McDonald, the President and Executive Director, respectively, of the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota. Notary Public 10 STATE OF MINNESOTA ) ss. COUNTY OF The foregoing instrument was acknowledged before me this _ day of September, 2018, by Matt Houston, the President of Houston Homes, Inc., a Minnesota corporation, on behalf of said corporation. DRAFTED BY: Jensen Sondrall Persel in & Woods, P.A. 8525 Edinbrook Crossing, #201 Brooklyn Park, MN 55443 (763)424-8811 Notary Public 11 Exhibit A Legal Description See attached. 12 EXHIBIT a 8 The West 60 feet of that part of the East 790 feet Northeast Quarter of the Northwest Quarter of Section 5, Township 118, Range 21, lying North of the following described line. Beginning at a point in the center line of the Osseo Road distant 275.61 Feet Southerly along said center line from its intersection with the North tine of said Section 5, thence Easterly to a point which point is described as follows: Beginning at a point in the North line of said Section 5 distant 644.5 feet of the !vast of the intersection of said North line with the Northeast corner of said Northeast Quarter of the Northwest Quarter, thence deflecting to the right 104 degrees 40 minutes and running Southwesterly 289.8 feet tc said point; except the Northerly 33 feet thereof, Hennepin County,, Minnesota. Exhibit B Permitted Encumbrances 1. Restrictions, reservations, covenants and easements relating to use or improvement of the Property without effective forfeiture provisions of record on the Effective Date; 2. Building and zoning laws, ordinances, city, state and federal regulations; 3. Governmental regulations, if any, affecting the use and occupancy of the Property; 4. All rights in public highways upon the land; 5. Easements for public rights -of -way and public and private utilities, which do not interfere with present improvements; 6. Reservations to the State, in trust for the taxing districts concerned, of minerals and mineral rights in those portions of the Property the title to which may have at any time heretofore been forfeited to the State for nonpayment of real estate taxes. 7. The lien of unpaid special assessments, if any, not presently payable but to be paid as a part of the annual taxes to become due; 8. The lien of unpaid real estate taxes, if any, not presently payable but to be paid as part of the annual taxes to become due. 13 See attached. Exhibit C Well Sealing Certificate 14 Exhibit D Restrictive Covenants See attached. 15 Exhibit E Assessment Agreement See attached. 16 Exhibit F Request for Proposal ("RFP") Guidelines See attached. 17 Exhibit G Buyer's Proposed Plans See attached. P:\Attomey\SAS\l Client Files\2 City of New Hope\99-11424 7311 62nd Ave. N\Purchase and Redevelopment Agreement 7311 62nd.docx 18 This lot is being offered at a price of $55,000. The EDA does not negotiate on lot price. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase this lot for $55,000 and build a new single family house in accordance with the RFP guidelines. If a builders proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name: a State License Number: -S-9 Telephone: 2c, -- yZ E-mail Address: Z'n W11 City/State/Zip: t Date: �P'_ Print Name and Title: Proposals are due by 12:00 Noon on August 17th 2018 Submit this proposal form and required attachments to: Aaron Chirpich City of New Hope I Community Development Specialist 4401 Xylon Ave N I New Hope, MN 55428 Office: 763-531-5114 1 Fax:763-531-5136 acllir ic11 "Ci.netiv-110'5 .17111, s Proposals may be submitted by hand delivery, U.S. Mail, Fax or E-mail M Houston Homes, Inc. 9020 Willowby Crossing Maple Grove, MN 55311 320.420,4213 Mattwhouston@gmail.corn August 16, 2018 Dear Mr. Chirpich, Houston H ames, Thank You for the email notification regarding the "UP", for the lot located at 7311 62nd Avenue North. Houston Homes has been in the Real Estate and Construction industry for a period of 20 years. 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 Monticello, Hanover, and Maple Grove. These homes have primarily been Larger 2 stories and executive ramblers. All though are recent projects have been traditional development lot housing, we are definitely no stranger to infill housing on existing city lots, as that was the basis and starting point for our company in the early 2000's. We would very much like to be considered as a builder for the lot located at 7311 62nd Ave N., and have included plans and specs for our building proposal that we feel would be a valuable asset to the existing neighborhood. Our internet presence on Houzz.com would provide you 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 and current under construction homes. Houston Homes, Inc 9020 Willowby Crossing Maple Grove, MN 55311 320.420.4213 Matiwhouston@gmail, corn August 15, 201 S Dear Mr. Chirpich, We feel that the "Destiny", plan would be a valuable asset to the existing neighborhood for the lot located at 7311 62nd Avenue North. It has a lower profile, when viewed from the front elevation, than most bi levels homes and gives it the appearance of a one story home, which we feel would blend well with the existing neighborhood, but still provide a presence of quality new construction. Features include: 2000 sq. feet finished, 4 bed, 2 bath, 3 car garage, high definition laminate perimeter countertops with undermount sink, rustic alder cabinets, enameled 3 panel crossmore interior doors, lower level gas fireptace,stained poplar base and casing, vinyl siding with board and batten gables, stone accents, wood front porch, aluminum porch railings, upgraded carpets, wood floor in entry, kitchen, and dining, vaulted ceilings, granite island top, and stainless steel appliance package. Our intentions would be to break ground on this project as soon as the lot is cleared for closing. We would anticipate completing the home within 100 days of permit acceptance, and anticipate the asking price to at or around $299900. Please feel free to contact us with any questions. Thank You for your consideration. Sincerely, Matt Houston Houston Homes, Inc. 6338 82nd St NE Monticello, MN 10757 Settlers Lane Hanover, MN 8658 Bison Ave Monticello, MN 8689 Bison Ave Monticello, MN 5934 Deer St. Monticello, MN 3747 Ford Drive Hackensack, MN Sincerely, Matt Houston, CEO Houston Homes, Inc LEFT ELEVATION xs:.� �e•.r�• fiov'• mod, 4 REAR .r-�EVATION I xxe� va•EL 6:12 P TCH E. RG-.T•EEVATION r V r rV4 Sr .t� a ca 14'-0" 1'•B' b'•0- B SLIDER 9LIDTJq 2 SLIDER RO 5' X3'b' RO.-, x}'y ?w-5'C'X3'b" 2 X b $1-WALL ON 5 CRS IV- LONG BL< I i 20" X 10" CONC FfG E A' BES'' 3 Co" [/ �] � Y 10 4" X f2' 4" 10 4" X 12' 4" II' X 12' 4" I FAIYILY ROOM 13'8"X24'4" i I I N I 8� I LL• � I C 1'IEC..AMLAL/ I2-a UP L2 yg T MAN LA;3�IpR'" lecars W I v 22'_&' m � - I I 1 CRAWLSPAGE — a Im • � 0 5 CRS 10" CONC BLK 20" X 10" CCNC FTG I i r------ C 4 GNCRETE LEDGE IIINEXCAVATED I INJEXGAVATED II I CRS. 6" CONC. BLOCK I 4 CRS- H" CONC- BLOCK FRS- 8" CONC. FOOTING r u II I 3 40• 6'-0• 3'•10' II � J II AF[F 6' S: iCf*Ys RL7r0 .7C•QR RO. ®' ]r 3' 6' RO. S' 0. X 3' 6" W4 • D:NMG 5' X r� .2' 0• X 1v W. k 5EDPOO1'1 •2 k n• a'• x rz• m• W m" �t • LINEN _����� 2 6 TOYS _ 9 6;1Y $XTcRa7R PITCti � `9 2-4 2 6 se a m 14'4•k L.t'0' 'y• _t RAY m MA6TER BEDROOM _ 1v � IT W X n, $. m m0 l'•8' 3•-6• 3•-0• g•.g• p.q 13'.4• y1 � 9 ALL I `s 1 I M ! 22'-B' m 3-O 2424 2474 PIXE" 2' 0' . 2 0' GARAGE (TO 32' 0" k 24' 0' I WXTOW DOOR s U00 SQ FT ~ — — — lb' X r' Ow DOOR� i I I 1 U 20'-0' �.m. i n�� ['his lot is being offered at a price of $55,000. The EDA does not negotiate on lot price. ['his proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a )roposal to purchase this lot for $55,000 and build a new single family house in accordance with the RFP Widelines. I a builders proposal is accepted by the EDA, builder will be asked to enter into a purchase and ievelopment 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: �S�"kl_S Telephone: j _ J - d 3­7 E-mail Address: C/" e S " Signature` Pratt Name and Title: Proposals are due by 12:00 Noon on August 17th 2018 Submit this proposal form and required attachments to: Aaron Chirpich City of New !-lope I Community Development Specialist 4401 Xylon Ave N I New Hope, NtN 55425 OFtice:763-531-5114 1 Fax:763-531-5t36 .whir ii�fi�c i near-hr� �e.rmt.u� Date: Proposals may be submitted by hand delivery, U.S. Mail, Fax or E-mail 6n,-I TOLLBERG 1428 5ch Ave I Anoka, MN 55304 763-205-2037 If: 763-421-5616 1 www.tollberghomes.com August 16, 2018 New Hope Community Development Dept. Attn: Aaron Chirpich Re: 731162"d Ave. New Hope, MN Dear Mr. Chirpich, Please accept our application to purchase the lot located at 731162"d Ave. in the city of New Hope. Tollberg Homes would be prepared to purchase and close this lot as soon as they are available and would begin construction immediately. Tollberg Homes, LLC is a local builder out of Anoka that builds single family homes in a variety of communities and price ranges. We build in the Twin Cities as well as in Western North Dakota and we expect to construct about 50 homes annually. Our recent awards include the 2014 People's Choice Award in Bismarck and BATC Reggie Award in 2015. We were also recognized as a top 25 builder in MN for 2016. Current MN communities that we are active in include Lino Lakes, Blaine, Edina, Stillwater, Golden Valley and Ramsey. We have the financial strength to purchase the lots and complete the construction. A commitment letter is attached to this proposal. We also have a successful history purchasing lots from the City of New Hope. Tollberg Homes has significant experience building in first ring suburbs and in -fill lots. In addition to the 10 lots we have purchased in Crystal over the past three years, we have also built multiple homes in Anoka, Columbia Heights, Coon Rapids, Fridley, Maplewood, and Little Canada as well as 1 lot from the city of New Hope. Our clients who bought these homes have been appreciative of the quality and value delivered by Tollberg Homes. Our warranty also exceeds industry standard as we perform a 4 week and 1 year walk through with all of our clients after closing to address any concerns. We are proposing a 4 bedroom 2 bath 2 car garage home with 1850 Square feet. Because of lot width we were not able to make a 3 car garage design work out. We feel this plan is going to be able maximize the square footage and bedroom count on this particular lot. We have many interested buyers and will be able to place a homeowner very quickly. TOLLBERG 1428 5th Ave I Anoka, M N 55304 763-205-2037 If: 763-421-5616 1 www.tollberghomes.com We thank you for your consideration for this lot. Building new homes in existing neighborhoods can be a challenging experience. We hope that our track record in your City is proof that we can work well with City staff, be respectful of neighboring homeowners, and also deliver a product that enhances your community. We look forward to your response. Very truly yours, Wade Tollefson Chief Executive Officer Tollberg Homes Cell: 612-804-9988 Remington Financial Group, Inc . 03/06/20 l 8 RE: Proof of Funds To Whom It May Concern: 1428 Soudi 5 h Avenue Anoka, MN 55303 763.784,3400 Office 763.3984988 Fax Maximizing your profits with our lntegrht This letter is to serve as proof of funds as requested. Please be advised that Tollberg Homes, LLC has the capacity to advance funds up to seven hundred and fifty thousand dollars ($750,000.00) without the assistance of any outside fimding. If there are any questions as to the above, kindly contact the undersigned. Best Regards, �t[ Selucl4 Kelly Schultz I Proudly Marketed TOLLBERG By: First Impressions )ATE: 8/17/2018 Home Base Price $ 200,000.00 Lot Premium $ 55,000.00 CLIENT: Permit Value $ 5,000.00 Lot Conditions $ 10,000.00 ADDRESS: 731162nd Ave. New Hope Options Total $ 30,000.00 HOME TOTAL $ 300,000.00 QTY. ITEM DESCRIPTION ITEM PRICE TOTAL PRICE NOTES 1 FRONT ELEVATION OF HOME Please See Plan 1 Medinah FLOOR PLAN (split level) with 1030 sq ft on the $ upper level and 820 sq ft in the lower level. Total sq ft= 1,850. Up to 6 hours design time included, 1 STRUCTURAL BASEMENT $ 1 Drain Tile System $ INCLUDED FEATURE 1 Block Foundation $ INCLUDED FEATURE 1 Full Basement or SELO with 8' Ceiling w/ Floor Trusses $ INCLUDED FEATURE 1 FRAMING $ 1 2 x 6 Exterior Walls $ INCLUDED FEATURE 1 3/4" Tongue and Groove Subflooring $ INCLUDED FEATURE 1 8' ceiling with vault (split level and multi level) and 9' $ INCLUDED FEATURE Ceilin s 2-stor on Main Level, per plan 1 Ceiling/Wall Details Such As Arches, Vaults, Etc. per plan $ INCLUDED FEATURE 1 EXTERIOR DOORS & WINDOWS $ 1 White Vinyl Window Package (Per Plan) $ INCLUDED FEATURE 1 Choice of steel front door style $ INCLUDED FEATURE 1 GARAGE DOORS $ 1 Chamberlain Liftmaster 8365 Garage Door Opener with $ INCLUDED FEATURE, 2 openers KevDad lon double stall arage) and ke ad 1 Timberland Classic RP-25 Garage Door OR Aspen Ridge $ INCLUDED FEATURE AR - 25 - size per plan, white in color 1 OTHER EXTERIOR FEATURES $ - 1 Stone veneer accents or wood boxed out pillars (per $ - INCLUDED FEATURE Ian 1 Vinyl Siding on all 4 sides (Choice of non -premium Alside INCLUDED FEATURE or Royal colors 2 Exterior Weatherproof Outlets and Water Faucets $ - INCLUDED FEATURE 1 Housewra $ - INCLUDED FEATURE 1 PLUMBING & OTHER BATHROOM FEATURES $ 1 Sump Pump $ INCLUDED FEATURE 1 Water Line to Refrigerator $ INCLUDED FEATURE 1 Garbage Disposal, Bad er 5 with Cord 1/3 HP $ INCLUDED FEATURE 1 Dispoal Flange, Monogram Brass (MB162BN), Brushed $ INCLUDED FEATURE Nickel 1 Air Gap for Dishwasher, Standard Delta "Classic" $ - INCLUDED FEATURE D72020AR in Arctic Stainless 1 50 Gallon Electric Water Heater $ INCLUDED FEATURE EXPRESS SERIES Page 1 of 3 CITY, ITEM DESCRIPTION ITEM PRICE TOTAL PRICE NOTES 1 Utility tub in house, freestanding or wall mounted $ INCLUDED FEATURE 1 Delta Express Plumbing Package $ INCLUDED FEATURE 1 HVAC $ 1 Gas or Electric Line to Dryer and Range $ INCLUDED FEATURE 1 Hry 200 -Air Exchan er $ INCLUDED FEATURE 1 92%+ Efficiency Gas Furnace $ INCLUDED FEATURE 1 13 Seer Central Air Conditioning Unit $ INCLUDED FEATURE 1 Panasonic whisper fans in all baths $ INCLUDED FEATURE 1 Programmable Thermostat $ INCLUDED FEATURE 1 Passive Radon Reduction Venting $ INCLUDED FEATURE 1 Hood Vent (vented to outside) $ INCLUDED FEATURE 1 LIGHTING $ 1 Lighting package to be selected at Tollberg Design Studio, $ - INCLUDED FEATURE nick from 1 of 3 included packages 1 ELECTRICAL $ 1 White switch plates (toggle style) $ - INCLUDED FEATURE 1 200 Amp Electrical Service $ INCLUDED FEATURE 1 Smoke and Carbon Monoxide Detectors $ INCLUDED FEATURE 4 Recessed cans included $ INCLUDED FEATURE 1 LOW VOLTAGE $ 1 2 cable jacks and 2 phone jacks included $ INCLUDED FEATURE 1 DRYWALL $ 1 Knock Down Ceilings $ - INCLUDED FEATURE 1 INTERIOR DOORS AND MILLWORK $ ` 1 iChoice of Lynden 2 or 3 panel MDF Hollow Core interior $ INCLUDED FEATURE (*Basement doors (Prefinished White) to be priced out separately) 1 Millwork: Small Princeton or Small Flat Pre -finished $ $ INCLUDED FEATURE Poplar Trim 1 Schlage Interior Door Knobs (Satin Nickel or Oil Rubbed $ INCLUDED FEATURE 1 Bronze Schlage Exterior Door Knob/Lever w/ Deadbolt (Satin $ INCLUDED FEATURE Nickel or Oil Rubbed Bronze 1 CABINETS $ - INCLUDED FEATURE 1 Birch Kitchen Cabinet Package - Please see cabinets plans $ $ - Koch Cabinets .per plan $ 1 FLOORING KITCHEN, DINETTE, FOYER 1 JVinyl INCLUDED FEATURE 1 I FLOORING - MUDROOM, WALK-IN CLOSET $ - 1 Vinyl $ - INCLUDED FEATURE 1 FLOORING - GREAT ROOM $ - 1 Express Std Carpet $ INCLUDED FEATURE 1 FLOORING - STAIRS AND LANDING $ - 1 Express Stcl Carpet $ INCLUDED FEATURE 1 FLOORING - MASTER BEDROOM, BR 2, 3, 4, LOFT $ - Per Ian 1 Express Std Carpet $ INCLUDED FEATURE 1 FLOORING - MASTER BATH $ 1 Vinyl $ - INCLUDED FEATURE 1 FLOORING - MAIN BATH $ 1 Vinyl $ INCLUDED FEATURE 1 FLOORING - MAIN BATH #2 (Per Plan) $ - 1 Vinyl $ INCLUDED FEATURE 1 COUNTERTOPS & SINKS 1 COUNTER TOPS - KITCHEN $ 1 Laminate Countertops INCLUDED FEATURE EXPRESS SERIES Page 2 of 3 Buyer Signature(s) Date Buyer Signature(s) Date Builder Representative Date Wade Tollefson, Owner - Tollberg Homes Date EXPRESS SERIES Page 3 of 3 E —LEA w b zvov -Vr &L Ito A�- I" r [Z !CLEF ':Oo Rl d III Fs+%l�-'��r- ` -NINES i- nrRiwr/nwrt�. rw^ I�r rr+1wwww� www�*www► ■�Bfllw. ��� 10 mollEMZ III tS '• r f = Mimi - E_LE�%r 4 ' wl YA}"=i-An OPL-ACR S NORn17CST DFSnd1 S O. 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Company Name: MU LLL^�— State License Number:L Telephoz e: b r i --If h Address:V�l 7��j7� AV �C..} 1 City/State/Zip: r L Signatur t '-" Date, Print Name and Proposals are due by 12:00 Noon on August 17th 2018 Submit this proposal form and required attachments to: Aaron Chirpich City of New Hope I Community Developi 401 Won Avv 1 I New Ilope, \1-1v Si4P Office: 76.3-5,1-:;114 I f<i.:763-511-51 ;n •iy }1}�j>iclrir�ri. ne»-[w� . mttu- Proposals may be submitted by hand delivery, U.S. Mail, Fax or E-mail r(br 10 171 25 W It ka-e_ ay,� dr 3i 5 L\rD w %mac Novak -Fleck, Inc. Single Family Standard Features General Construction Concrete Foundation C 2 X 6 Construction Floor Truss Construction Drain Tile and sump basket ® 50 gallon electric water heater Rough -in 3/4 bath in Lower level Fiberglass single laundry tub (opt) 150 amp electrical service Five phone or cable jacks/Media Panel Bedroom ceiling lights Vinyl patio door Lo-E vinyl windows ID q0 + natural gas forced air furnace HRV (Heat Recovery Ventilation) system ID 3 panel White Masonite interior doors 45 Poplar stained shaker cabinets Poplar stained railing and 1 1/4 poplar stained spindles Poplar stained skirtboards Poplar stained trim and casings M517 Base and F156 casings ID Polo door knobs/hinges Kitchen Dishwasher & Microwave circuit (WWDF520PADM) 0 Garbage Disposal on city lots 4 Laminated countertops Poplar stained shaker cabinets 0 8" Stainless steel dual sink with sprayer ID Single level Chrome faucet Electric Range and Dryer Waterline to refrigerator Bath 4' Fiberglass 1 piece shower unit 0 5' Fiberglass tub and surround One piece vanity mirror Cultured marble vanity tops (Most Plans) Single lever Chrome faucets Ck Poplar stained Shaker vanity Insulation Exterior wall R-Value of 24.98 R-49 ceiling insulation ID Exterior block walls insulated and damp proofed Waterproofing on interior concrete walls Exterior 10 Vinyl Siding (Napco-Comfort Series) ID Architectural Shingles (GAF - Timberline) R Asphalt driveway Concrete front step and sidewalk Steel insulated front door Two (2) outdoor faucets 24-guage steep panel garage doors House wrap on exterior walls Allowances O $2800.00 Appliance Allowance (SX5 Package) d $150 Lighting allowance 0 $16.00 per yard flooring allowance YNarran RWC — Residential Warranty Corporation Other Walk-thru inspection before closing Construction clean prior to occupancy Novak -Fleck, Inc, reserves the right to change the price, plans, spedflcatlons, material or construction methods without prior notice or obligation c:\Users\lpeterson\Desktop\Novak-Fleck Important information\NF5tuffinew standard features.doc Last Updated: 5/13/2015 114 AM Custom 3 Car Version fvor, base + lot credit for no third stall Permit/curbs/ tree removal Lot acquisition/Carrying costs Air Conditioning 4 recessed lights in kitchen 4 recessed lights in living room Upgraded Handrail wide and deep tub 36" 1 additional pendant over island (2 total) 1 ceiling fan 2 dead bolts upgrade kitchen faucet upgrade bath fixtures 36 inch uppers 55 x 16 1200 total lighting allowance $4100 total appliance allowance $1,400.00 additional flooring allowance $3,300.00 landscape allowance $7,500.00 1 Transom windows finished lower level Bed/Bath/Family Room 963 Post Carraige Door Hardware V Large Crown in Kitchen gutters and downspouts $2,400.00 $284,480.00 ntienj S 8/9/2018 1:41 PM C:\Users\djjan\Desktop\ 1 of 2 220 ASPHALT SH"aW M ROOT FELT UY Om ow-ATAWO OCT. 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V4'�ILO' ASHM RaW MOM mom LVALF k��` i. ` .,�, :F ' __ I11 � «� �_ ` _ -_. +_ , -_��_ =-__�- r =-_-� . _�_ _ _ . q�:i, .i +rsr-ter "•�:1~..-. ��.• . r-•� •� .- _ 7-s ..��'-`r..: _�'t= � - - -,- 4� :�. �r111[fRIfIAIRIrIARI;IA;R�..-- 111111111 = - _ -- ,� Rirlrl�lurl�Irfc�arlrlilfulRlrn... =III III III = ..lints II l! still ii iifiuiuii ili►i i1riiluri•.- — rA RA -NMI I""" - 11 ir��arrriT iyir�oW H�Ft; �z� *W- 2-I W4" VY TFIM1371lA>'i'9 mr-11ti 2-I I V4kll W TOOD R W a 0 U This lot is being offered at a price of $55,000. The EDA does not negotiate on lot price. I This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase this lot for $55,000 and build a new single family house in accordance with the RFP guidelines. If a builders proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name: -- -��_-o C . State License Number: Telephone: ko _i� -- Address: E)8 7-1 i ity/State/Zip: Y` %11. A Signatu Print Name and Proposals are due by 12:00 Noon on August 17th 2018 Submit this proposal form and required attachments to: Aaron Chirpich City of New Hope I Community Development Specialist 4401 Vlon Ave v i Nea• I lolk , %IN 55428 Office: 76.3-S11 5114 `_. Fax: ,3chi rPi�iti�•ri.m tiv-h��I� .mz�.ii Date: Proposals may be submitted by hand delivery, U.S. Mail, Fax or E-mail (,0, 18 wo �� a 0.< 25 152 5 -7 rw\vim Novak -Fleck, Inc. Single Family Standard Features General Construction i Concrete Foundation O 2 X b Construction m Floor Truss Construction ® Drain Tile and sump basket O 50 gallon electric water heater ® Rough -in 3/4 bath in Lower level Fiberglass single laundry tub (opt) 150 amp electrical service Five phone or cable jacksWMedia Panel • Bedroom ceiling lights Vinyl patio door Lo-E vinyl windows 90 + natural gas forced air furnace HRV (Heat Recovery Ventilation) system ® 3 panel White Masonite interior doors 0 Poplar stained shaker cabinets @ Poplar stained railing and 1 1/4 poplar stained spindles Poplar stained skirtboards Poplar stained trim and casings MB1i Base and F156 casings ® Polo door knobs/hinges Kitchen Dishwasher & Microwave circuit (WWDF520PADM) Garbage Disposal on city lots Laminated countertops Poplar stained shaker cabinets 8" Stainless steel dual sink with sprayer ® Single level Chrome faucet Electric Range and Dryer Waterline to refrigerator Bath 4 4' Fiberglass 1 piece shower unit 5' Fiberglass tub and surround One piece vanity mirror • Cultured marble vanity tops (Most Plans) • Single lever Chrome faucets Poplar stained Shaker vanity Insulation Exterior wall R-Value of 24.98 ® R-49 ceiling insulation Exterior block walls insulated and damp proofed o Waterproofing on interior concrete walls Exterior Vinyl Siding (Mapco -Comfort Series) m Architectural Shingles (GAF - Timberline) Asphalt driveway Concrete front step and sidewalk a Steel insulated front door Two (2) outdoor faucets • 24-guage steep panel garage doors House wrap on exterior walls Allowances 0 $2800.00 Appliance Allowance (5X5 Package) E $150 Lighting allowance U $1 b.00 per yard flooring allowance Warran RWC — Residential Warranty Corporation Other Walk-thru inspection before closing Construction clean prior to occupancy Novak -Fleck, Inc. reserves the right to change the price, plans, specifications, material or construction methods udthout prior notice or obligation G:\Userslipeterson\Desktop\Novak-Fleck Important Information\NFStuff\new standard features.doc Last Updated: 8/19/201b 7:14 AM Custom Regency 3 Car Version base + lot Permit/curbs/ tree removal Lot acquisition/Carrying costs Air Conditioning increase sq footage 50 sq ft x 145.00 4 recessed lights in kitchen 4 recessed lights in living room Upgraded Handrail wide and deep tub 36" 1 additional pendant over island (2 total) 1.ceiling fan 2 dead bolts upgrade kitchen faucet upgrade bath fixtures 36 inch uppers 55 x 16 1200 total lighting allowance $4100 total appliance allowance additional flooring allowance landscape allowance 1 Transom windows finished lower level Bed/Bath/Family Room 963 Post Carraige Door Hardware Large Crown in Kitchen gutters and downspouts $3,300.00 $7,500.00 $2,400.00 $299,512.00 � _,�,•;-n c�_ av 0_ Sl y 1� ���^t rlU Al::: 8/9/2018 1:36 PM C:\Users\dAan\Desktop\ 1 of 2 ntlpiLu 1w NML • Wnffd- f✓• JM §W ►vl'Jl lrrfwl MW 2O lle Mwl WO TWO— w11/lsrrraAolu,� Pr>•1RM, ��l w wwaw eallma� TAh `!ir xuwlar+r�, e+000 rAr w eau w �� IFI 1t1 'Awfm7el An AMa /IIrIfRo Aw w I NMANlla acm ca a'.R' h. ■rrwwi<rsrr��.lahlVrloulW7)trnwrlroan� i t wrlsow a71r i 1e1 illsl as'AY �A11a 111 2x6 STUDS R-21 BATTS INSULATION DATE: 911/17 ADDRESS 23259 Una=uR at SIDING FL 7116" OSB SHEATHING CONTRACTOR NOVAK-ECK INC LICENSE # 0011631 HOUSE WRAP Ia(Aimpf aav,wrw ■rnwe TM IOfA310X FLALSIENG FLOOR SYSTEM 1/2" DRYWALL t A Vh CklADE PRAY -FOAM @ RIM INTERIOR ^ & EXPOSED TOP OF WALL R-5 SHEET FOAM IF REQD 12" BLOCK WALL 2x4 FURRINQ W/l" SPACE IF FIN I/2 DRYWALL IF FIN 2071 1-1/2" 1 7/16" SHEATHING 4"CONC SLAB INSUL EF REQD 12"BLOCKWALL L1,.)7�'.ii. 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IWI 1/8' TR'BCPtWMtAW OC M NOTW Onoww ®a4pAp[doo The City of New Hope Economic Development Authority (EDA) is requesting proposals from builders to purchase the city owned lot located at 7311 62nd Avenue North, for the construction of a new single —family home. The lot is being offered as part of the City's Scattered Site Housing Program that focuses on the removal or rehabilitation of distressed properties. The site currently contains a vacant home that will be razed by the EDA. The home is tentatively scheduled for demolition in late August. The city would like to see construction of the new home begin in the fall of 2018. City staff plan to review the proposals with the City Council at the August 27th Council meeting. Enclosed, please find the Proposal Form and Guidelines for making a proposal. To receive consideration, proposals must be submitted on a completed Proposal Form and the required attachments and additional information must be included. Incomplete proposals will not be considered. Proposals are due by 12:00 Noon on August 17th 2018. If you have questions about the RFP process or the enclosed Guidelines, please contact Aaron Chirpich in the Community Development Department at the City of New Hope, 763-531-5114 or achirpich@ci.new-hope.mn.us Thank you for your interest! Regards, Aaron Chirpich Community Development Specialist SHE General Notes: Only complete proposals will be considered. The City retains absolute discretion in deciding whether to accept any particular proposal. 2. Proposals must be submitted by state -licensed builders who have built at least three houses in Minnesota in the last five years, or have equivalent experience acceptable to the City. The house may be built speculatively or for a specific buyer. 3. The City is interested in proposals that will generate the highest valued home possible. The new house must be an owner -occupied, single family home. Owner occupancy restrictions will be documented in the development agreement and secured with a recorded restrictive covenant. The occupancy requirement shall apply to the first buyer only and shall last for a period of one year. Full details regarding the legal language of this requirement are available upon request. 4. No preferred home style has been determined. However, preference will be given to concept plans that propose to finish the most square footage and those that include high quality exterior materials and upgraded interior amenities. 5. Following proposal approval by the City Council, selected builders will be asked to enter into a purchase and development agreement. This agreement will address the sale of the lot and secure all applicable development and performance standards outlined in the proposal guidelines. At the time of this agreement the builder must submit a $2,000 nonrefundable earnest money deposit. Once the purchase and development agreement have been completed, final approval by resolution will take place at the next regularly scheduled City Council meeting. 6. Construction of the new house must be completed within one year of closing on the purchase of the lot. Now Specifications: 1. Utilities a) All utility service lines shall be underground. Utilities may locate necessary facilities such as pedestals or boxes in the street right-of-way or utility and drainage easements. b) Any expenses for connection of the house to private utilities shall be the responsibility of the builder. c) Municipal water is available into the lot on the north side of the property and the location of the service will be marked onsite. The EDA will install a new curb stop and box in conjunction with the demolition of the home. d) Municipal sanitary sewer is available into the lot on the north side of the property and the location of the service will be marked onsite. The EDA will slip -line the existing service from the termination point all the way to the main line in conjunction with the demolition of the home. 2. Building Standards and Design Guidelines a) All site improvements shall comply with the New Hope City Code. b) The house shall have at least three (3) finished bedrooms and two (2) finished bathrooms. c) The house shall have an attached garage that will accommodate a minimum of two vehicles. Three stall garages are preferred. d) The design should emphasize the front door as the focal point for the front of the house. A large and usable front porch is desired. Garage door dominance in design should be minimized as much as possible, such as by using separate doors for each stall. e) The driveway for the new home must be completely new and fully paved from the street to the garage. The demolition contractor will leave a portion of the old driveway as a construction entrance. This remaining section of the old driveway must be fully removed with the construction of the new home. Specifications: e) Plans should present a balanced and pleasing distribution of wall and window areas from all views. Blank walls are not permitted. To the extent that southern exposures are present, house designs are expected to enhance wintertime natural light and passive solar heating. f ) No equipment such as air-conditioning cooling structures or condensers that generate noise shall be located within a side setback, drainage and utility easement. g) Exterior materials (siding, soffit, doors and windows) shall be low maintenance. The use of brick or stucco is preferred. Vinyl or other low maintenance siding materials are generally acceptable and can be made more desirable through the use of shakes, fish scales or other styles to break up the pattern. 3. Landscaping The lot shall be landscaped to be aesthetically pleasing in all seasons. Land forms and plant materials shall be used to define the site and blend neatly with adjoining property. The lot area remaining after providing for off-street parking, sidewalks, driveways, buildings, and other requirements shall be landscaped using ornamental grass, shrubs, trees or other acceptable vegetation or treatment generally used in landscaping. The use of grass seed or hydro -seed is not acceptable for restoration of disturbed areas. All grass that is planted must be sod. Additionally, all lawn areas must be irrigated with underground irrigation systems. b) A minimum of two (2) large -species deciduous shade trees shall be planted in the front yard. A minimum of one (1) large -species deciduous shade tree shall be planted in the rear yard. Trees should be a minimum of 2" in diameter. A list of prohibited trees is attached. 4. Setbacks Front Yard Rear Yard Interior Side Yard Attached Garage Interior Side Yard House 25 feet 25 feet 5 feet 10 feet Approximate maximum home width = 45 feet Specifications: 5. Builder Selection Criteria a) Builder must a licensed in the State of Minnesota as a Residential Building Contractor. b) Builder shall provide the addresses of three houses they have built in Minnesota within the last five years, or evidence of qualification acceptable to the EDA. c) Builder must be capable of completing the house within one year of closing on the purchase of the lot. 6. Required Attachments by Builder a) Site plan showing the layout of the home on the lot. Please include dimensions and setbacks. b) Floor plans with dimensions. Clearly indicate square footages of each floor. c) List overall square footage. d) List total finished square feet. e) Elevations, must indicate types of exterior materials (color elevations preferred). f) Narrative description of the interior trim package. Include description of flooring. g) Estimated sales price of the home. h) Pictures of similar homes (if available). 7. Attachments Provided by City • Sample lot layout (with approximate dimensions) Prohibited tree list This lot is being offered at a price of $55,000. The EDA does not negotiate on lot price. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase this lot for $55,000 and build a new single family house in accordance with the RFP guidelines. If a builders proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name: State License Number: Telephone: E-mail Address: City/State/Zip: Signature: Print Name and Title: Proposals are due by 12:00 Noon on August 17th 2018 Submit this proposal form and required attachments to: Aaron Chirpich City of New Hope I Community Development Specialist 4401 Xylon Ave N I New Hope, MN 55428 Office: 763-531-5114 1 Fax: 763-531-5136 iich i r3)iche!)ci.new-1za,Iae.mn.us Date: Proposals may be submitted by hand delivery, U.S. Mail, Fax or E-mail EDA IN AND FOR THE CITY OF NEW HOPE CONTRACT FOR HAZARDOUS MATERIAL ABATEMENT, DEMOLITION OF SITE IMPROVEMENTS, UTILITY WORK, TREE REMOVAL, WELL SEALING, AND SITE GRADING AT 7311 62ND AVE. N. For valuable consideration as set forth below, this Contract dated the °�� day of August, 2018, is made and entered into between the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota ("EDA") and Nitti Rolloff Services Inc, a Minnesota corporation ("Contractor"). 1. CONTRACT DOCUMENTS Contractor hereby promises and agrees to perform and comply with all the provisions of this Contract pursuant to the specifications for hazardous material abatement, demolition, utility work, tree removal, well sealing, and site grading attached hereto as Exhibit A for the hazardous material abatement, demolition of all building and site improvements, utility work, tree removal, well sealing, and re -grading of the residential property located at 7311 62nd Ave. N., New Hope, Minnesota ("Property"). The Contract including specifications on Exhibit A shall comprise the total agreement of the parties hereto. No oral order, objection, or claim by any party to the other shall affect or modify any of the terms or obligations contained in this Contract. 2. THE WORK The work to be performed by Contractor under this Contract (hereinafter the "Work"), is defined in the Proposal as hazardous material abatement, demolition of all building and site improvements located on the Property, utility work, tree removal, well sealing, and re -grading of the Property. As part of the Work, Contractor agrees to remove all excess material from the Property. 3. CONTRACT PRICE The EDA agrees to pay Contractor the sum of $28,000 in exchange for Contractor furnishing labor and materials for the Work at the Property, payable within 30 days of Contractor's completion of the Work. Contractor may start work on this project upon its execution of this Contract and providing proof of insurance pursuant to paragraph 5. 4. COMPLETION DATEILI¢UIDATED DAMAGES Contractor shall complete all Work on or before September 21, 2018 ("Completion Date"). Due to the difficulty in ascertaining and establishing the actual damages which the EDA or City would sustain, liquidated damages are specified as follows for failure of Contractor to complete his performance under this Contract by the Completion Date: for every calendar day that the —1— Contract shall remain uncompleted beyond the Completion Date of September 21, 2018, Contractor shall pay the EDA $50.00 per day as liquidated damages. 5. INSURANCE Before beginning actual work under this Contract, Contractor shall submit to the EDA and obtain the EDA's approval of a certificate of insurance on Standard Form C.I.C.C.-701 or ACORD 25 forms, showing the following insurance coverage, and listing the Contractor as a loss payee under the policies: a. General Contractor Liability: $1,000,000.00 b. Workman's Compensation: Statutory Amounts The EDA and the City shall be named as an Additional Insureds in regard to the General Contractor Liability forms where required by written contract on a primary and non-contributory basis, including completed operations. This certificate must provide for the above coverages to be in effect from the date of the Contract until 30 days after the Completion Date, and must provide the insurance coverage will not be canceled by the insurance company without 30 days written notice to the EDA of intent to cancel. The certificate must further provide that Contractor's insurance coverage is primary coverage notwithstanding any insurance coverage carried by the EDA that may apply to injury or damage relating to the maintenance or repair of the City streets or rights - of -way by either the City, EDA or any employee, agent, independent contractor or any other person or entity retained by the City or EDA to perform the services described herein. All insurance is subject to the review and approval of the New Hope City Attorney. 6. LAWS, REGULATIONS AND SAFETY Contractor shall give all notices and comply with all laws, ordinances, rules, and regulations applicable to performance under this Contract. Contractor shall provide adequate signs and/or barricades, and will take all necessary precautions for the protection of the work and the safety of the public. 7. INDEMNIFICATION To the fullest extent permitted by law, Contractor shall indemnify and hold harmless the City, EDA, their agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorney's fees, arising out of or resulting from the performance of Work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease or death, or to injury or to destruction of tangible property (other than the Work itself) including the loss of use resulting therefrom, and (2) is caused in whole or in part by any negligent act or omission of Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. —2— whole or in part by any negligent act or omission of Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. 8. ASSIGNMENT Contractor shall not assign or transfer, whether by an assignment or novation or otherwise, any of its rights, duties, benefits, obligations, liabilities or responsibilities without prior written consent of the EDA. 9. NOTICE The address and telephone number of Contractor for purposes of giving notices and any other purpose under this Contract shall be 12351 Cloud Drive Northeast, Blaine, MN 55449, and 763-238-1014. The address of the EDA for purposes of giving notices and any other purposes under this Contract shall be 4401 Xylon Avenue North, New Hope, MN 55428. IN WITNESS WHEREOF, the parties to this Contract have hereunto set their hands and seals as of the day and year first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR,THE CITY OFF NEW I OPE By: Kirk McDonald Its: Executive Director NITTI ROLLOF ERVI ES INC __- By: Its: C ief Executive Officer —3— ACCORDCERTIFICATE OF LIABILITY INSURANCE $�"`° o `' 16 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED, the pollcy(leaj must be endorsed. If SUBROGATION 15 WAIVED, Subject to the tens and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate bolder In lieu of such endorsemartga). PRODUCER CONTACT Ceil Provo NAME,. AesuredPartner>g of Minnesota LLC . (651) 644-7200 (651)64493.37-- 2361 Highway 36 Went � � .cprovaBap�#arleaota.Coral u St. Paul MN 55113 INBURERAmestern National Mutual Inc. 15377 INSURED ---- — - IHguRaRe a Me_stern _National Insurance flroup Nitti Rolloff Services, Inc. INSURERe2vanston Insurance C TBfl , 35378 Nitti Enterprises, Inc. INSURERD: - PO HOX 490726 INSURERE: _ Blaine DIN 55449 INSURMF: COVERAGES CERTIFICATE NUMBER:18/19 Master REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. lNSR TYPE OF INSURANCE ._...,..� POLICY ?413I l8ER , lJPO CY EFF rPOLICY £1LP L"TS X , COMMERCIAL GENERAL LIABILITY f EACH OCCURRENCE _ 3 11000,000 - I-5AF�7ZM , 000 A CLAIMS -MADE X;OCCUR ?F- - M-TAMyrretM) $ _. X CFP 1131566 I 2/1/2010 2/1/2019 MEDEXPF/N Le_6r8gn S 5.000 ----� PERSONAL >►ADV INJURY S 1,000,000 GEN'LASMEGAiE LIMIT APPLIES PER: I !3£NCCRAL AGGREGATE $ 2,000,000 POLICY •� jE LOC j PRODUCTS - COMP/Op AGG—S 2,000,000 I Employment Preoftee Liability " $ 100,000 OTHER: AUTOMOBILE LIABILITY LIMIT Is 1, 000, 000 BODILY INJURY (Per person } i s A ANY AUTO ALL AUTOS Jam SCHEDULED rAUTOS_pp 1135948 2/3/2018 2/1/2019 _.. I I BODILY INJURY (Per accidenl) S III ". . PROPERTY DAMAGE " S HIRED AUTOS AUTOSWNED IPar acddegl) f X Camp92,000 u con62,= Uowirs-red i 1,000,000 X UMBRELLA LIAB X OCCUR • EACH OCCURRENCE _ Z _ 1,000,000 B _ l EXCE89LIAB G(,AIMpgE * AGGREGATE S 11000_.009 DPI X I RETFISITION1 10,00 MIS 1022715 2/1/701B 2/1/2019 S WORXERSCOMPENSATION PER A STATUTE _ I ER AND EMPLOYERS' LIABILITY Y ! N ANY PROPRiETDRIPPRYNERIt )MCUTIVE I it N J A I 3RE6200 - Rvanaton rEL, EACH ACCIDENT Is 1,000.0.000 OFFICERVEMBER FXCLUDE07 i C (Mandatory h1 NH) 'i I 10-0001334 - T60) 2/l/2018 2/1/2019 •_E.L. 016EASE- - FA EMPLOYEE S, 1.000 000 A Leaved/Rented Equipment CPP 1137566 l 2/1/2018 2/1/2019 Limit DESCRIPTION OF OPERATIONS J LOCATIONS (VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached It more space Is requlred) City of New Hope 4401 Xylon Avenue No. New Hope, MN 55428 ACORD 25 (2014101) INS025 (20t401) $150,000 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATNE James Enge/CEIL -A�� P1 . ` " `� 01968-2014 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD e& 2 Property Owner: City of New Hope EDA Property Address: 731162 Avenue North P.I.D. = 05-118-21-21-0012 For a price of $ c 9 � 0 0 0 tz— the contractor named below proposes to fully complete the work in accordance with the attached specifications for abatement, demolition, site grading, well sealing, tree removal and utility work at 7311 62nd Avenue North. Name of Contractor: /V '++' 9,11 o r ( S-e-yIc e s License Number: Address: 1 -J 3S/ Chuol A- IV., ' 15122G %:Q /iirl -I—S-1114 9 76S .938- I0 )k Contractor Sign E-mail Address: Ua n a OIL/'? i �as� �-S• �'`" Title: j- "o-5 Date: V/ %� Exhibit A Specifications See attached. P:\Attomey\SAS\l Client Files\2 City of New Hope\99-11424 7311 62nd Ave. N\7311 Demolition Contract.doex M From: The Economic Development Authority in and for the City of New Hope Subject: Request for quotes for demolition, site grading, well sealing, asbestos abatement, utility work and tree removal at 7311 62nd Avenue North. Overview: The City of New Hope EDA is the owner of the property addressed as 731162nd Avenue North, (P.I.D. 05-118-21-21-0012). The EDA is requesting quotes for removal of hazardous material and demolition of all building and site improvements at this location followed by re -grading of the primary excavation area, well sealing, tree removal, and installation of utility improvements. If you are interested in submitting a quote for this project, please review the enclosed specifications and inspect the site. To gain entry into the home, use the lock box on the front 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 August 3rd 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 January 8th meeting. The timeline for com- pletion of all work will be weather dependent. Submit proposals to the following: Attn: Aaron Chirpich City of New Hope Community Development Department 4401 Xylon Ave, North New Hope MN, 55428 achirpich@ci.new-hope.mn.us A., Property Owner: City of New Hope EDA Property Address: 731162 Avenue North P.I.D. = 05-118-21-21-0012 For a price of $_ , the contractor named below proposes to fully complete the work in accordance with the attached specifications for abatement, demolition, site grading, well sealing, tree removal and utility work at 731162nd Avenue North. Name of Contractor: License Number: Address: 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 silt fencing 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. Include removal of all out -buildings and miscellaneous items included in the attached pictures. 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. c. Upon completion of the finished grade, contractor shall immediately hydro -seed all disturbed areas of the site. 4. Tree and Vegetation Removal a. City staff have marked all trees 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 stum s in the demolition bid. 5. Abandonment of Wells a. The city does know of two wells on the property. One is located in the basement of the home and the other is outside of the home near the detached garden shed. As part of this bid, the demolition contractor is to hire a well sealing company to properly seal the wells and record the sealing with the MDH. Contractor must provide records of the well sealing to the city upon completion. There is a photo of the exterior well attached to this report. The casing of the exterior well should be cut and capped below grade. 6. Utilities a. Contractor shall be responsible for calling Gopher State One Call for the location of any underground utilities prior to commencement of demolition and site grading work. b. The city has ordered the disconnection of electricity (Excel Energy) and natural gas (Centerpoint Energy) services for the property. Contractor shall field verify disconnections prior to demolition. Other private communication utilities such as telephone and cable may still be connected; if so, contractor shall roll them back and secure them at the pole prior to demolition. c. Contractor is to coordinate the shut off of water with Public Works to ensure that the water is off before termination of the water service. Contractor is to remove the water line all the way to the curb stop. Contractor is to install new curb stop and box as part of the water disconnection. The water service is currently located in the driveway. Contractor is to move the service 15' to the east to bring the valve out of the driveway area. Document and mark on -site, the location of the service termination. Inspection by the City will be required prior to backfilling of the trench. d. Contractor is to coordinate the termination of the private sewer line with Public Works. The sewer line should be removed to within 3 feet of the property line and the remaining service stub shall be lined with CIPP lining all the way to the main. Once lined, cap the end in preparation of connection to the new home. Document and mark on -site, the location of the service termination. Inspection by the City will be required prior to backfilling of the trench. e. Contractor is to remove the abandoned septic tank located in the backyard. A photo of the tank is attached to this report. 7. Asbestos and Other Hazardous Materials a. The City has contracted with Angstrom Analytical for the completion of a demolition survey for the property. The survey is attached to this report. Demolition contractor is to provide for the removal, and appropriate disposal of all asbestos and other hazardous items listed in the report. 8. Permits and Inspections a. Contractor will complete and submit the City of New Hope demolition permit application. Permit fees for the demolition permit will be waived, however the State surcharge will still be collected as the City can not waive that portion. Contractor shall have the work inspected prior to backfilling the primary excavation. The private water and sewer service terminations will also be inspected by City Public Works staff. A separate water and sewer disconnection permit must be secured from the City. The same fees will be waived for this permit. b. If any permits from other governmental agencies are required, contractor shall, at contractor's own expense, secure such permits, pay any fees and complete any inspections required by same, and provide a copy of the permit to the City. c. Contractor shall submit "Notification of Intent to Perform a Demolition' Form to the MPCA. 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 _e 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. SPECIFICATIONS FOR DEMOLITION AND RELATED WORK I a- Y I. SPECIFICATIONS FOR DEMOLITION AND RELATED WORK Tr .� � tiii +,',� .fir t�%_ �i {��}{ A.• + lrr �..,. - _ � - � � . � �; ��-.�. 4: ice• . Ai Vp. �' ,�' e SPECIFICATIONS FOR DEMOLITION AND RELATED WORK VIWI TV op •3y7�yer��., t •yam �� � � •� � •74 ����'' SPECIFICATIONS FOR DEMOLITION AND RELATED WORK . ' ' :� fir' "'1j � � �r� i.ii. v � • i _. -� - -r' ��.' 7''. .;% e� : PPP .� .' Z+' • F -� .�. ,�; illtttf� e. ��E � A � fit: , ; • r i �; � .. ' c 'lk err "�...1�vad^ ; �a' v Y.. • r! - _ �� ��� ." _ ^-,. �y.•" E. =.sue -, ". �.•• 'tom �, ti i '. 1�x,. -��n t- f r1 -4" Request for Action August 13, 2018 Approved by: Kirk McDonald, City Manager Originating Department: Community Development By: Aaron Chirpich, CD Specialist Agenda Title Agenda Section EDA Item Number 4 Resolution approving contract with Nitti Rolloff Services, Inc. for hazardous material abatement, demolition of site improvements, utility work, tree removal, well sealing, and site grading of 7311 62nd Avenue North (improvement project no. 1022). Requested Action Staff requests approval of a resolution awarding a contract for hazardous material abatement, demolition of all site improvements, utility work, tree removal, well sealing, and site grading for the property located at 7311 62nd Avenue North, to the low and responsible bidder, Nitti Rolloff Services, Inc. in the amount of $28,000. 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 7311 62nd 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 hazardous material abatement, demolition of all site improvements, replacement of the water service valve, lining of the sanitary -sewer service, tree removal, sealing of two wells, and limited site grading. Requests for quotes were sent to five contractors. Staff received two bids and the results are as follows: ■ Kevitt Companies $52,000 • Nitti Rolloff Services, Inc. $28,000 Funding EDA funds will be used to pay for this project on the front end. Following the sale of the vacant lot, the EDA will be reimbursed by Hennepin County with Community Development Block Grant funds. Experience with Recommended Contractor The EDA has worked with the recommended contractor on four previous scattered site housing projects. Nitti Rolloff Services, Inc. was the selected contractor for demolition and site grading work at 9121 62nd Avenue North, 4415 Nevada Avenue North, 5400 Yukon Avenue North, and 3751 Louisiana Avenue North. Staff had a good experience working with the contractor on past projects, and has no concerns with hiring them for this project. I:\RFA\COMM DEV\ Development\ Q & R Award Demolition Contract for 3751 Louisiana Avenue Improvement Project 993 5-5-17.docx Request for Action, Page 2 Attachments • Resolution • Bids Received ■ RFQ and Bid Specifications EDA RESOLUTION NO. 18- 12 RESOLUTION APPROVING CONTRACT WITH NITTI ROLLOFF SERVICES, INC. FOR HAZARDOUS MATERIAL ABATEMENT, DEMOLITION OF SITE IMPROVEMENTS, UTILITY WORK, TREE REMOVAL, WELL SEALING AND SITE GRADING OF 7311 62ND AVENUE NORTH (IMPROVEMENT PROJECT NO. 1022) 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 7311 62nd Avenue North, New Hope, MN (the "Property") with the intentions of redeveloping the Property; and WHEREAS, City staff intends to redevelop the Property in accordance with the City's scattered site housing program and policy and return the Property to the tax rolls for the benefit of all taxing jurisdictions; and WHEREAS, City staff is exercising due diligence to correct the Property's blighted condition by performing an environmental cleanup of the Property to be followed by the demolition of all buildings on the Property, utility work, tree removal, well sealing and site grading of the Property; and WHEREAS, Nitti Rolloff Services, Inc. submitted a proposal for hazardous material abatement, demolition of site improvements, utility work, tree removal, well sealing and site grading ("Work") that meets all of the Project Specifications and is the low bid; and WHEREAS, it is in the best interests of the EDA to enter into a contract with Nitti Rolloff Services Inc. for the purpose of performing the Work; and WHEREAS, City staff is hereby seeking approval from the EDA of the selection of Nitti Rolloff Services Inc. as the duly qualified contractor to perform the Work. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. That selection of Nitti Rolloff Services, Inc. as the Contractor to perform the demolition of all building and site improvements located at the Property, utility work, tree removal, well sealing 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 $28,000 to Nitti Rolloff Services, Inc. to perform the Work is hereby approved. 4. The President, Executive Director, and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the hazardous material abatement, demolition, utility work, tree removal, well sealing and the re -grading of the Property in accordance with the contract to be prepared by the City Attorney. Dated the 13th day of August, 2018. Attest: 1 Kirk McDonald, Executive Director Kathi ftbkiken., Press n Property Owner: City of New Hope EDA Property Address: 731162 Avenue North P.I.D. = 05-118-21-21-0012 For a price of $ A , 0 0 0 , the contractor named below proposes to fully complete the work in accordance with the attached specifications for abatement, demolition, site grading, well sealing, tree removal and utility work at 7311 62nd Avenue North. Name of Contractor: /V'++' Poll o F r Serv1 c e s T e, License Number. Address: 3 Sl C �du/ > -e IV, %- 1,11a, /1 Q o i--7 _5-5�Z4 9 Telephone: 769 a 3 8' I o 1� 1-19 Contractor Signatur E-mail Address: AOL^ a A t V %�a�"`�, fs'. -Cv, Title: , JWQ-S Date: 9ewle Property Owner: City of New Hope EDA Property Address: 731162 Avenue North P.I.D. = 05-118-21-21-0012 For a price of $ OdOe VIU , the contractor nained below proposes to fully complete the work in accordance with the attached specifications for abatement, demolition, site grading, well sealing, tree removal and utility work at 7311 62nd Avenue North. Name of Contractor: KeV; if GP,—? .` ✓►i o License Number: L 16 1 5 00),- wt- -v Luis % %�•tcwr �1,5 Address: 3335 fznrls ����,.� Aye,"tic N L.r-Iy�t,f AMA/ 55'11 --- Telephone: 76 - 51-i 5 " 35 5 7 E-mail Address: ���c/ ' iCw, �N e ,r. �►, .�a+-, Contractor Signature: 0 Date: 913116 Title: V icz Qf GS i C4 � From: The Economic Development Authority in and for the City of New Hope Subject: Request for quotes for demolition, site grading, well sealing, asbestos abatement, utility work and tree removal at 731162nd Avenue North. Overview: The City of New Hope EDA is the owner of the property addressed as 731162nd Avenue North, (P.I.D. 05-118-21-21-0012). The EDA is requesting quotes for removal of hazardous material and demolition of all building and site improvements at this location followed by re -grading of the primary excavation area, well sealing, tree removal, and installation of utility improvements. If you are interested in submitting a quote for this project, please review the enclosed specifications and inspect the site. To gain entry into the home, use the lock box on the front 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 August 3rd 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 January 8th meeting. The timeline for com- pletion of all work will be weather dependent. Submit proposals to the following: Attn: Aaron Chirpich City of New Hope Community Development Department 4401 Xylon Ave, North New Hope MN, 55428 achirpich@ci.new-hope.mn.us Property Owner: City of New Hope EDA Property Address: 731162 Avenue North P.I.D. = 05-118-21-21-0012 For a price of $ , the contractor named below proposes to fully complete the work in accordance with the attached specifications for abatement, demolition, site grading, well sealing, tree removal and utility work at 7311 62nd Avenue North. Name of Contractor: License Number: Address: 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 demolitionycontractor_is to install silt fencing 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. Include removal of all out -buildings and miscellaneous items included in the attached pictures. 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. c. Upon completion of the finished grade, contractor shall immediately hydro -seed all disturbed areas of the site. 4. Tree and Vegetation Removal a. City staff have marked all trees 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 stumps in the demolition bid. 5. Abandonment of Wells a. The city does know of two wells on the property. One is located in the basement of the home, and the other is outside of the home near the detached garden shed. As part of this bid, the demolition contractor is to hire a well sealing company to properly seal the wells and record the sealing with the MDH. Contractor must provide records of the well sealing to the city upon completion. There is a photo of the exterior well attached to this report. The casing of the exterior well should be cut and capped below grade. 6. Utilities a. Contractor shall be responsible for calling Gopher State One Call for the location of any underground utilities prior to commencement of demolition and site grading work. b. The city has ordered the disconnection of electricity (Excel Energy) and natural gas (Centerpoint Energy) services for the property. Contractor shall field verify disconnections prior to demolition. Other private communication utilities such as telephone and cable may still be connected; if so, contractor shall roll them back and secure them at the pole prior to demolition. c. Contractor is to coordinate the shut off of water with Public Works to ensure that the water is off before termination of the water service. Contractor is to remove the water line all the way to the curb stop. Contractor is to install new curb stop and box as part of the water disconnection. The water service is currently located in the driveway. Contractor is to move the service 15' to the east to bring the valve out of the driveway area. Document and mark on -site, the location of the service termination. Inspection by the City will be required prior to backfilling of the trench. d. Contractor is to coordinate the termination of the private sewer line with Public Works. The sewer line should be removed to within 3 feet of the property Iine and the remaining service stub shall be lined with CIPP lining all the way to the main. Once lined, cap the end in preparation of connection to the new home. Document and mark on -site, the location of the service termination. Inspection by the City will be required prior to backfilling of the trench. e. Contractor is to remove the abandoned septic tank located in the backyard. A photo of the tank is attached to this report. 7. Asbestos and Other Hazardous Materials a. The City has contracted with Angstrom Analytical for the completion of a demolition survey for the property. The survey is attached to this report. Demolition contractor is to provide for the removal, and appropriate_ disposal of all asbestos and other hazardous items listed in the report. 8. Permits and Inspections a. Contractor will complete and submit the City of New Hope demolition permit application. Permit fees for the demolition permit will be waived, however the State surcharge will still be collected as the City can not waive that portion. Contractor shall have the work inspected prior to backfilling the primary excavation. The private water and sewer service terminations will also be inspected by City Public Works staff. A separate water and sewer disconnection permit must be secured from the City. The same fees will be waived for this permit. b. If any permits from other governmental agencies are required, contractor shall, at contractor's own expense, secure such permits, pay any fees and complete any inspections required by same, and provide a copy of the permit to the City. c. Contractor shall submit "Notification of Intent to Perform a Demolition" Form to the MPCA. Vr a 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. SPECIFICATIONS FOR DEMOLITION AND RELATED WORK y q r- SPECIFICATIONS FOR DEMOLITION AND RELATED WORK Arlo S � ' �H � • i � I �� i ,fin f, r ��. � I �• - y. iw .41 ' v �; _:.r ' : f ,� 1 `4 � •: f��s � -fit ,".•�+i � •�/1t'. ��'�� u T.'F lP r Ry SPECIFICATIONS FOR DEMOLITION AND RELATED WORK 'v Ai_ , • SPECIFICATIONS FOR DEMOLITION AND RELATED WORK )I - SPECIFICATIONS FOR DEMOLITION AND RELATED WORK 1p I+� . ���, a '' f .'V �• *•iL. , ,� I!!` ;����� i 14, S. T+•* .M s. :ow A g;trom nalytical Inc. Aaron Chlrplch City of New Hope 4401 Xylon Ave N New Hope, MN 55428 6/29/2018 731162nd Ave N New Hflpe Dear Aaron: 5001 Cedar Lake Rd. St, Louis Park, MN 55416 952-252-0405 office 952-252-0407fax Kevin Hagen t12652, a representative of Angstrom Analytical, Inc., visited the above referenced property on June 15, 2018 for the purpose of conducting an asbestos demolition Inspection. We are prepared to state that there are friable & 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: TSI paper 9x9 floor tile & mastic window glazing Vermiculite <1% The friable materials are: 1. Approximately 6-8 square feet of asbestos containing TSI paper In the dining room. 2. Approximately <1 square foot of asbestos containing (TSI) by the stove In the basement. A. Approximately 650-700 square - feet of asbestos containing attic insulation (Vermiculite <1%) The non -friable materials are: Category I: 4, Approximately 650-700 square feet of asbestos containing 9x9 floor tile & mastic In the basement, 5, Approximately 9-10 windows with asbestos containing glazing throughout the home. During the course of the survey the following hazardous materials were noted: Mercury Misc. Materials 1 thermostat 1 fuel oil tank Appliances 1 water heater 2 refrigerators 1 washer/dryer 1 stove 1 furnace All friable and category II non -friable materials need to be removed, per applicable regulations, prior to and demolition efforts. Category I non -friable materials are allowed to be left in place for the demolition. However, the landfill must be made aware that the demolition debris will contain (minimal amounts of) category I non -friable asbestos containing material and Is subject to the MPCA's rules and regulations pertinent to the demolition efforts (notifications, etc.). This survey should not be Interpreted as a bidding document or as an asbestos project design. It Is Incumbent upon the contractor to verify quantities. Quantlflcatlon 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. Sincerely, Kevn Hagen Angstrom Analytical, Inc. 5001 Cedar Lake Rd. A St. Louis Park, MN 55416 gstrom 952-252-0405 office milt[cal 952-252-0407 fax 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; 7311 62nd Ave N Number of Samples; 60 Methods and Definitions The submitted samples were analyzed using the EPA Interim Method #600/M4-82-020 (polarized light microscopy with dispersion staining). The method defines an asbestos containing material as one that contains grater than 1% asbestos by weight and asbestos is defined as the fibrous forms of serpentine and certain amphiboles. While the fibrous and non jlbrous forms of minerals are discernible microscopically In hand specimens, the distinction between them 1s not clear on a microscopic level, especially after processing or manufacturing. Fibrous amphiboles are generally those whose mean aspect ratios (length over width) under the microscope are approximately >10; non fibrous amphiboles are generally those whose mean aspect ratios are approximately <6. During analysis, morphology and an estimate of mean aspect ratio are used to assign a given mineral fiber population to fibrous and non fibrous categories. That non fibrous amphiboles are not reported as asbestos Is consistent with mineralogical deflnitlons, but does not Imply that non -fibrous amphiboles are not hazardous. Airborne concentrations of them may be regulated by OSHA under certain circumstances. The type of dispersion staining used is generally phase contrast, although central stop dispersion staining may also be used. Percentage Reporting The percentage of each fiber type present was determined using volume percents estimated from stereoscopic examination, projected area percents from mounted slide examination and percents from comparison to weight percent standards. Such estimations are suitable for most samples, but do have large error ranges. Errors are estimated to be 100 relative percent uncertainty for percentage estimates under 10% ranging down to as little as 10 relative percent uncertainty for percentage estimates greater than 50%. Friable samples which have been estimated by the above methods to contain less than 10% asbestos can be point -counted, according to the EPA Interim Methods, as required by NESHAPS. In low percentage samples, point counting may produce false negatives or positives, due to the small number of points counted. For samples consisting of more than one apparent type of material or layer, the percentage of each fiber type In each type of material of layer Is determined and reported separately; an overall average for the sample of each fiber type Is then calculated. The reported friability of a sample refers to that friability observed In the condition analyzed (broken, crushed, etc.), and Is not to be substituted for an on -site assessment of friability. Each Angstrom Analytical lab report relates only to the sample tested and may not, due to the sampling process be rcpresentatly of the pteriaisampled. June 29, 2018 Kevin H gen, Angs m nalytical, Inc. Full Service Laboratory and on -site Industrial Hygiene Services for the Hazardous Materials Abatement Industry 0 Material Identification Table gstrom 5001 Cedar Lake Road Project #: On -site nalyfical A St. Louis Park, MN 55416 Date: 6/29/2018 Inc- 952-252-0405 Client: City of New Hope Project: Residential N=no damage ND=none detected PD = potential damage Address: 4401XylonAve N Address: 731162ndAve N D=moderate damage NS=Not Sampled PSD = potential for New Hope, MN 55428 New Hope SD= significant damage NAC=not accessible significant damage Phone: 763-531-5114 Contact: Aaron Chirpich SF=square feet EA=each NS-Notsuspect Email: achirpich@cLnew-hope.mn.us Phone: 763-531-5114 LF=rnearfeet NT-NotTested Sample # Location Material Description Asbestos / % Quantity / Unit Condition Damage Potential Rating 1-3 kitchen 12x12 floor tile top layer white/brown ND 120-130/SF N PD 0 4-6 kitchen flooring bottom layer red ND 120-130/SF N PD 0 7-9 dining TSI heater paper gray fibrous CHR 40% 6-8/SF N PD 2 10-12 dining tile, mortar,grout cementitious ND 30-40/SF N PD 0 13-15 dining ceiling texture white granular ND 100-110/SF N PD 0 16-18 bsmt 1x1 ceiling tiles beige ND 650-700/SF N PD 0 19-21 bsmt floor tile 9x9 CHR 3-4% 650-700/SF N PD 1 22-24 bsmt masticfor 19-21 black CHR 2-3% 650-700/SF N PD 1 25-27 bsmt stove TSlpaper gray fibrous CHR40% <1/SF N PD 2 28-30 bsmt flue patch cementitious ND 2/EA N PD 0 31-33 bsmt shower tile,mortar,grout cementitious ND 10-20/SF N PD 0 34-36 LR 2x2ceilingtiles white ND 150-160/SF N PD 0 37-39 LR 9x1 ceiling tiles above 2x2 beige ND 150-160/SF N PD 0 40-42 main bath tile,mortar,grout cementitious ND 90-100/SF N PD 0 43-45 main bath lxl ciling tiles white ND 70-80/SF N PD 0 46-48 attic vermiculite gold TR<3% 650-700/SF N PD 1 49-51 throughout sheetrock,jointtape white granular ND 1000-1100/SF N PD 0 52-54 exterior roofing brown/black ND 950-1000/SF N PD 0 55-57 exterior window glazing hard CHR 2% 9-10/EA N PD 1 58-60 exterior stucco cementitious ND 850-900/SF N PD 0 CHR-Chrysotile TREM-Tremorrte ACr-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-meth- LR-riving rm C garage U-utility ST-stairway