012604 EDA
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OFFICIAL FILE COpy
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CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
January 26, 2004
President W. Peter Enck
Commissioner Sharon Cassen
Commissioner Don Collier
Commissioner Mary Gwin-Lenth
Commissioner Steve Sommer
1 . Call to order
2. Roll call
3. Approval of regular meeting minutes of January 12, 2004
4. Resolution authorizing execution and delivery of acontracUor private
redevelopment by and between the New Hope Economic Development Authority
and the Ryland Group, Inc. (improvement project no. 751)
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5. Resolution authorizing the acquisition of certain property within the city of New
Hope for the purpose of redevelopment (improvement project 724)
6. Resolution approving purchase agreement and reloqation benefits 5400 Winnetka
Avenue North (improvement project 760)
7. Resolution approving purchase agreement and relocation benefits 5440 Winnetka
Avenue North (improvement project 755)
8. Discussion regarding 7615 Bass Lake Road (New Hope A1ano), purchase price,
relocation benefits, and re,quest to purchase city-owned property at 7601-41 6200
Avenue North (improvement project 723)
9. Resolution authorizing approval of a term sheet between the New Hope Economic
Development Authority and Armory Development II, LLC for the redevelopment of
the former Frank's Nursery Property, 5620 Winnetka Avenue North (impro.vement
project no. 733)
10. Update on potential redevelopment by Bear Creek Capital and CVSPharmacy
(improvement project no. 754)
11 . Adjournment
EDA Minutes
Regular Meeting
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
IMP. PROJECT 755
Item 4
IMP. PROJECT 758
Item 5
New Hope EDA
Page 1
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
]\.TEW HOPE, MINNESOTA 55428
January 12. 2004
City Hall
President Enck called the meeting of the Economic Development Authority to order
at 8:03p.m.
Present: W. Peter Enck, President
Sharon Cassen, Commissioner
Don Collier, Commissioner
Mary Gwin-Lenth, Commissioner
Steve Sommer, Commissioner
Motion Was made by Commissioner Gwin-Lenth, seconded by Commissioner
Collier, to approve the Regular Meeting Minutes of December 8, 2003. Voted in
favor: Enck, Collier, Gwin-Lenth, Sommer; Abstained: Cassen. Motion carried.
Motion was made by Commissioner Gwin-Lenth, seconded by Commissioner
Collier, to approve.the Executive session minutes of December 8, 2003. Voted in
favor: Enck, Gwin-Lenth, Sommer;. Abstained: Cassen, Collier. Motion carried.
President Enck introduced for discussion Item 4, Resolution approving purchase
agreement and relocation benefits - 5440 Winnetka Avenue North (improvement
project no. 755).
President Enck reported that the. item will be deferred for two weeks at the request
of the property owner.
President Enck introduced for discussion Item 5, Resolution approving purchase
agreement and relocation benefits -7605 Bass Lake Road (improvement project no.
758).
Mr. Ken Doresky, Community Development Specialist, stated the property Was
appraised for $158,000. The property owner has accepted the city's offer of the
appraised value and a relocation' payment estimated at $4,250. He stated the
relocation payment for this property will consist of moving expenses and closing
costs for their new property. He explained that no differential payment will be
awarded due to the fact that the owners purchased a property for less than the city's
purchase price for the subject property.'
The EDA questioned the "estimated relocation expenses" wording used within the
resolution rather than using language such as "not to exceed".
City Attorney Sondrall indicated the estimated amount is based on the relocation
expert's analysis. He noted his preference to the term "estimated" as listing a higher
"not to exceed" figure may cause the property owners to believe they are eligible for
a greater amount.
The EDA asked whether the city must paYPQintson closing costs. Mr. Sondrall
expressed uncertainty as the relocation consultant makes recommendations in
accordance with federal law.
January 12, 2004
Mr. Kirk McDonald, birector of Community Development. indicated he will invite
Steven Carlson, telocation manager with Evergreen Land Services, to the next EDA
meeting to respond to questions. Fe noted the city 'Will be acquiring more properties
and it would i,)e informative to have Mr. Carlson present.
EDA RESOLUTION
04-01
Item 5
Commissioner Collier introduced the following resolution and moved its adoption
"RESOLUTION APPROVING PURCHASE AGREEMENT AND
RELOCATI()NUENEFITS- 7605 BASS LAKE ROAD (IMPROVEl\'IENT
PROJECT NO. 758).". The motion for the adoption. of the foregoing resolution
was secoIldedbypo~~ioner Sommer, and upon votel;>eing taken thereon. the
following voted in Ja,\or thereof: .. Enck,. Cassen, Collier, Gwin-Lenth. Sommer: and
the following v()t~dagainstthe same: None; Abstained: None; Absent: None:
whereupon tIle. r<:;~~lllti?nwasdeclared dulv passed and adopted, signed by the
presideIlt W'l1ichw~.saJtested to by the executive director.
Motion was made ,9YC:?I11II1issioner Collier, seconded by Commissioner Sommer,
to adjourn t~em~~tiq.~. A.llpresent voted in favor. Motion carried. The New Hope
EDAadjournedat ~!20 p.m.
ADJOURNMENT
!/pectfully subn;itted,
;IU,DU-L::Ji[) u--
Valerie Leone
City Clerk
NeW' Hope EDA
Page 2
January 12, 2004
EDA
REQUEST FOR ACTION
Originating Department
Approved for Agenda
Agenda Section
Community Development
1-26-04
EDA
Item No.
B: Kirk McDonald
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B.,,- "-l
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A RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE
REDEVELOPMENT, BY AND BETWEEN THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AND
THE RYLAND GROUP, INC. IMPROVEMENT PROJECT NO. 751
REQUESTED ACTION
Staff recornmendsthatthe EDA approve the attached resolution, which approves the attached development
agreement with Ryland Group, In'c. for the East Winnetka redevelopment site in the Livable Communities
study area..Jim Casserly from Krass Monroe will be in. attendance at the meeting to review the details.with the
EDA. The highlights of the agreement were previously reviewed at the January 20 Council work session. Once
the development agreement is approved, the next step would be authorizing acquisition of the remaining
properties so that they can be delivered to the developer, per the agreement.
POLICY/PAST PRACTICE
The EDA has previously entered into contracts for private redevelopment with developers to facilitate
improvements in the city. This agreement will facilitate the construction of 171 to 179 new market rate
town homes and condominium units in the East Winnetka Livable Communities area and address life cycle
housing goals outlined in the Comprehensive Plan. '
BACKGROUND
The Council has been discussing the details of this development for over a year with Ryland Homes and the
attached development agreement finalizes all details on the contract portion of the development. The
developer will initiate the planning process in February and present plans to the Planning Commission and City
Council the first part of March, It is anticipated that there will be' some changes to the plan as' it proceeds
through the planning review and public comment process. Construction of model homes will take place in
April. The City Council selected Ryland Homes as the preferred developer for this site at the conclusion of the
Livable Communities study. due in part to the quality of the construction of its homes.
Please refer to previous information provided on this development, as it is not the intention to repeat all the
information in this report.
ATTACHMENTS
· Resolution
· Development Contract
· Winnetka Green Preliminary Plan
· Pro'ect Bulletin
MOTION BY
/!ttf~.
U 'LPA ./
SECOND BY
NEW HOPE ECONOMICPE,VELOPMENTAUTHORITY
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION NO.
A RESOLUTION AUTHORIZfNG EXECUTION AND .DELlVERY OFA
CONTRACT FOR PRIVATERf:[)EVE,L()f'MENT, BY AND BETWEENTHE
NEW HOPE ECONOMIC QEVELOPMENT. AU:rHORJ;TY !\,NDTHE,
RYLAND GROUP, INC. ", '_
BE IT RESOLVED by the New Hop~ Economic Development Authority (the "EDA")
as follows:
Section 1. Recitals.
1.01 It has been proposed that the EDA enter into a Contract for Private
Redevelopment (the "Contract") with The Hyland Group, Inc. (the "Redeveloper").
Section 2. FindinQs.
2.01 The EDA hereby finds that the Contract promotes the objectives as outlined
in its Restated Redevelopment Plan for Redevelopment Project NO.1 established pursuant
to Minnesota Statutes, Section 469.001 etseq.
2.02 The EDA ,hereby finds. that it. has approved and adopted Tax Increment
Financing District No. 03-1 (Special Law)anq theEDAhas approved and adopted the Tax
Increment Financing Plan relating thereto pursuant to Minnesota Statutes, Sections
469.174 through 469: 1799, inclusive, ,a$ amended and supplemented'from time to time.
Section 3. Authorizations.
3.01 The President and the Executive Director (the "Officers") are hereby
authorized to execute and deliver the Contract when the following condition is met:
Substantial conformity to the Contract presented to the EDA as of this
date with such additions and, modifications as those Officers may
deem desirable or necessary as evidenced by the execution thereof.
Adopted by the EDA this
day of
,2004.
, President
ATTEST:
, Executive Director
G:IWPDATAININEW HOPEI18\DOClEDA RESOL AUTHG EXEC OF REDEV AGR.DOC
.1/22 DRAFT (V2B)
CONTRACT FOR PRIVATE REDEVELOPMENT
THIS AGREEMENT, made asofthe . , day of , ' 2004, by and between the
New Hope Economic Development Authority (the "Authority"), a public body corporate andpolitic
(the "Authority"), having its principal offices at 44QIXylonAvenue North, New Hope, Minnesota
55428, and The Ryland Group, Inc., a Maryland corporation (the "Redeveloper"), having offices at
7600 Executive Drive, Eden Prairie, Minnesotc;t 55344.
WITNESSETH:
WHEREAS, the Authority is a political subdivision of the State of Minnesota and is
governed by a Board of Commissioners (the "Board");
WHEREAS, in furtherance of the Authority's objectives, there has been established a
Restated Redevelopment Plan (the "Project Plan") for Redevelopment Project No. I (the "Project
Area") in the City of New Hope, Minnesota (the "City") to encourage and provide maximum
opportunity for private development and redeveloPiTIent of certain propertyin the City which is not
now in its highest and best use;
WHEREAS, as of the date of this Agreement the Project Plan has been prepared .and
approved, and the Project Area has been establish~d pursuant to Minnesota Statutes, Sections
469.001 through 469.047 and 469.090 through 469.108;
WHEREAS, in connection with the Project Area the City Council of the City has created Tax
Increment F,inancing District No. 03~1 (Special Law) (the ''Tax Increment District") pursuant to
Minnesota Statutes Section 469.1 74 et seq. (the "Tax Increment Act");
WHEREAS, in connection with the establishment of the Tax Increment District the Council has
prepared and approved a tax increment financing plan and has forwarded it to the CountyofHennepin
for certification of the original net tax capacity;
WHEREAS, the Authority currently owns several parcels ofland within the Tax Increment
District and wishes to acquire the remainingp~cels in the Tax Increment District (the "Private
Property") in order to convey all of the parcels totlle Redeveloper for redevelopment;
WHEREAS, in order to achieve the objectives of the Project Plan, the Authority is willing, if
necessary, to acquire such additional parcels utilizing its power of eminent domain and would, if all
of such parcels were acquired, then convey thel11 to the Redeveloper subject to the Redeveloper
proceeding with construction in accordance with this A-greementand the Project Plan;
WHEREAS, the major objectives in establishing the Project Area are to:
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1. Promote and secure the prompt development or redevelopment of certain property in
the Project Area, which property is not now in productiveuuseor in its highest and best use, in a
manner consistent with the City's comprehensive plan and with a minimum adverse impact on the
environment and thereby promote and secure the development of other land in the City.
2. Promote and secure additional employment opportunities within the Project Area and
the City for residents of the City and surrounding area, thereby improving living standards, reducing
unemployment and the loss of skilled and unskilled labor and other human resources in the City.
3. Secure the increased valuation of property subject to taxation by the City, County,
School District and other.taxing jurisdictions in order to better enable such entities to pay. for
governmental services and programs required to be provided by them.
4. Provide for the financing and construction of public improvements in and adjacent to
the Project Area necessary for the orderly and beneficial development or redevelopment of the
Project Area and adjacent areas of the City.
5. Promote the concentration of new desirable residential, commercial, office and other
appropriate development or redevelopment in the Project Area so as to maintain the area in a manner
compatible with its accessibility and prominence in the City.
6. Encourage local business expansion, improvement, development or redevelopment
whenever possible.
7. Create a desirable and unique character within the Project Area through quality land
use alternatives and design quality in new and remodeled buildings.
8. Encourage and provide maximum opportunity for private development or
redevelopment of existing areas and structures which are compatible with the Plan.
9. Create viable environments which would upgrade and maintain housing stock,
maintain housing health and safety quality standards, and maintain and strengthen individual
neighborhoods.
10.
supply.
Stimulate private activity and investment to stabilize and ba.lance the City's housing
11. Eliminate code violations and nUIsance conditions that adversely affect
neighborhoods.
12. Revitalize property to create asafe, attractive, comfortable, convenient and efficient
area for residential use.
13. Recreate and reitiforce a sense of residential place and security which creates
neighborhood cohesiveness through City investment in neighborhood infrastructure and public
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improvements, including landscaping, park improvements, local street modifications to reduce traffic
. impacts, street repaving, curb ,and gutter repla(::ement,. and streetlight Ilpdating..
14. . Enc()urageinfilLdevelopmentand redevelopment that is compatible inuseand scale
with 'surrounding neighborhoods.
15, Rehabilitate the existing housing stock and preserve existing residential
neighborhoods, wherever possible.
16. Demolish and reconstruct, where necessary, aging residential buildings to preserve
neighborhoods.
17. Removal of substandard structures.
WHEREAS, under the Tax Increment Act, the Authority is authorized to finance certain costs
of a redevelopment project with tax increment revenues derived from a tax increment financing
district established within such redevelopment project;
WHEREAS, in order to achieve the objectives of the Authority and City in creating the
Project Area and in adopting the Project Plan, the Authority is prepared to provide assistance in
accordance with this Agreement; and
WHEREAS, the Authority believes that the development and redevelopment of the Project
Area pursuant to this Agreement, and fulfillinent generally of the terms of this Agreement, are in the
vital and best interests ofthe Authority and the health, safety, morals and welfare of its residents, and
in accord with the public purposes and provisions of applicable federal, state and local laws under
which the development and redevelopment are being undertaken and assisted;
NOW, THEREFORE, in consideration of the premises and the mutual obligation ofthe
parties hereto, each of them does hereby covenant and agree with the other as follows:
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"""'1'1"""'"
ARTICLE I
Definitions
Section 1.1, Definitions., In this Agreement, unless a different meaning clearly appears from
the context:
"Act" means Minnesota Statutes, Section 469.001 et seq.
"Agreement" means this Agreement, as the same may be from time to time modified,
amended, or supplemented.
"Authority" means the New Hope Economic Development Authority.
"Authority Default" means an action by the Authority described in Section 7.5.
"Building" means one ofthe structures containing one or more individual residential units as
described in the Minimum Improvements and shown on the Site Plan.
"Certificate of Completion" means a certification, in the form of the certificate attached as
,Schedule D hereto, provided to the Redeveloper pursuant to Section 4.4.
"City" means the City of New Hope, Minnesota, or its successors or assigns.
"Construction Plans" means the plans, specifications, drawings and related documents on the
construction work to be performed by the Redeveloper on the Redevelopment Property which (a)
shall be as detailed as the plans, specifications, drawings and related documents which are submitted
to the building official of the City, and (b) shall include at least the following for each building: (1)
site plan; (2) foundation plan; (3) floor plan for each floor; (4) elevations (all sides); (5) fa<;ade and
landscape plan; (6) cross sections (length and width) and (6) such other plans or supplements to the
foregoing plans as the City may reasonably request.
"County" means the County of Hennepin, Minnesota.
"Date of Closing" means the date or dates set forth in Section 3.3(b).
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"Environmental Reports" means the reports and other documents listed in Schedule C hereto.
"Event of Default" means an action by the Redeveloper described in Section 7.1.
"P easibility Period" means the period beginning on the effective date of this Agreement and
ending on the date on which the Redeveloper notifies the Authority that it will proceed with the
acquisition of the Redevelopment Property pursuant to Article ill, which shall in no event be later
than March 15, 2004.
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"Letter of Credit" means the irrevocable letter of credit to be provided bY:' the Redeveloper to
the Authority pursuant to Section 3.5 to secure the Redeveloper Note.
"Minimum Improvements" means the improvements described in Schedule H to be
constructed by the Redeveloper on the Redevelopment Property, which improvements consist of
approximately 170 residentialunitsconsistingof~eritage Condominiums and Carriage T ownhomes
as shown on the Site Plan.
"Minnesota Critical Areas Act" means Minnesota Statutes, Section 1160.01 et seq., as
amended.
"Minnesota Environmental Policy Act" means Minnesota Statutes, Sections 116D.O 1 et seq.,
as amended.
"Minnesota Environmental Rights Act" means Minnesota Statutes, Sections 116B.O 1 et seq.,
as amended.
"MPCA"means the Minnesota Pollution Control Agency.
"National Environmental Policy Act" means 42 D.S.C. Section 4331 et seq., as amended.
"Net Proceeds" means any proceeds paid by an insurer to the Redeveloper or the Authority
under a policy or policies of insurance required to be provided and maintained by the Redeveloper
pursuant to Article V of this Agreement and remaining after deducting all expenses (including fees and
disbursements of counsel) and deductible amounts incurred in the collection of such proceeds.
"Party" means a party to the AgreeIl1ent.
"Phase" means a portion of the Project which is of sufficient size, contiguity and location as
to be feasible for construction ofa portion of the Minimum Improvements. Tract I and Tract II
together shall be considered the first Phase ofthe Project; Tract ill is the second Phase ofthe Project.
"Plan" means, collectively, (i) the Restated Redevelopment Plan adopted by the Authority
and approved by the City for Redevelopment Project No.1, and (ii) the Tax Increment Plan.
"Private Property" means the parcels inthe Redevelopment Property which are not currently
owned by the Authority as described,onan exhibit to Schedule A.
"Project" means the Redevelopment Property and the Minimum Improvements.
"Project Area" means Redevelopment Proj ect No. J, as amended, established in accordance
with the Act.
"Project Plan" means the Restated Redevelopment Plan for ' the Project Area.
"Public Improvements" means the public itnprovements to be constructed by the Authority
on or adjacent to the Redevelopment Property as shown on Schedule F.
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"Purchase Price'" means the sum of $12,500 per residential unit constructed by the
Redeveloper on the, Redevelopment Property.
"Redeveloper" means The Ryland Group, Inc., a Maryland corporation, and its permitted
successors or aSSIgns.
"Redeveloper Note" means the promissory note attached as Schedule K payable by the
Redeveloper to the Authority as consideration for the Purchase Price. The principal amount of the
Redeveloper Note shall be adjusted, as necessary, to reflect the total number of residential units
constructed by the Redeveloper on the Redevelopment Property.
"Redevelopment Property" means the real property upon which the Minimum Improvements
are to be constructed, which real property is described on Schedule A attached.
"Redevelopment Property Deed" means a quitclaim deed or deeds, substantially in the form
of the deed attached as ScheduleR, used to convey the Redevelopment Property from the Authority
to the Redeveloper.
"Site Improvements" means the improvements to be constructed by the Redeveloper on the
Redevelopment Property as shown on Schedule G.
"Site Plan" means the plan attached hereto as Schedule E showing the proposed nature and
location ofthe Minimum Improvements.
"State" means the State of Minnesota;
"Tax Increment" means that portion of the real estate taxes paid with respect to the
Redevelopment Property which is remitted to the Authority as tax increment pursuant to the Tax
Increment Act.
"Tax Increment Act" means the Tax Increment Financing Act, Minnesota Statutes, Section
469. I 74 et seq., as amended and as it may be amended.
'''Tax Increment District" means Tax Increment Financing District NO...o3-1 (Special Law),
which includes the Redevelopment Property and which was approved and adopted by the Authority
and the City within Redevelopment Project No; 1 pursuant to the Tax Increment Act. .
"Tax Official" means any City or county assessor, County auditor, City, County or State
board of equalization, the commissioner of revenue of the State, any State or federal district court,
and the tax or any other court of the State, including the State Court of Appeals and the State
Supreme Court..
"Termination Date" means the termination date of this Agreement which shall be the earliest
of: (i) the issuance of a Certificate of Completion for the last building of the Minimum
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Improvements, or (ii) the date on which this Agreement is tenninated in accordance with the
provisions contained in Articles Vll and IX.
"Tract" means a portion of the Redevelopment Property to be conveyed by the Authority to the
Redeveloper as ,described on. Schedule J,
"Unavoidable Delays" means delays which are the direct result of strikes or shortages of
material;'.delays'whichare.fhe'. direct result of casualties to the Minimum Improvements. the
Redevelopmel1tProperty ortheequipmel1tused to construct the Minimum Improvemel1tsor; delays
which are the directresultofgovemmental actions (except that the Authority may not create an
Unavoiciable Delay by virtue of its own action); delays which are the directTesult of judicial action
commenced by third parties; delays, which are the direct result of citizen opposition or action
affecting ,this Agreement, adverse weather conditions or acts of God.
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I ~
ARTICLE II
Representations, Warranties and Covenants
Section 2.1. Representations bv the Authority. The Authority makes the following
representations, warranties and covenants as the basis for the undertaking on its part herein
contained:
(a) The Authority is a public body duly organized and ,existing under the laws of the
State. Under the provisions ofthe Act, the Authority has the power to enter into this Agreement and
carry out its obligations hereunder.
(b) The Authority has created, adopted and approved the Project Plan in accordance with
the terms of the Act.
(c) The Authority has properly adopted and approved, in accordance with State law, the
Tax Increment District pursuant to the Tax Increment Act and the City, based on these activities of
the Authority, has established the Tax Increment District pursuant to the Act.
(d) Subject to Unavoidable Delays and the conditions outlined in Article ill, the
Authority will acquire the Private Property and convey marketable title to the Redevelopment
Property to the Redeveloper on or before the dates set forth in Section 3 .3(b) as to each of the Tracts
for uses in accordance with the Project Plan and this Agreement. Any eminent domain activities
undertaken will be conducted in full confonnance with applicable law.
(e) The Authority will cooperate with the Redeveloper with respect to any litigation
commenced by third parties in connection with this Agreement.
(f) The Authority makes no representation, guarantee, or warranty, either express or
implied, and hereby assumes no responsibility or liability, as to the Redevelopment Property or its
condition (regarding soils, pollutants, hazardous wastes orothelWise) except as stated below or as
described in subparagraph (g) below. The Authority will deliver the Redevelopment Property to the
Redeveloper in the following condition:
(i) The Authority shall have performed the Public Improvements;
(ii) The Redevelopment Property shall have direct access to both Bass Lake Road
and Winnetka A venue; and
; (iii) The Redevelopment Property shall have direct access to public utilities.
(g) The Authority has delivered copies of the Environmental Reports to the Redeveloper.
The Authority has no knowledge ,as to the presence of hazardous substances (as the same are
described in the regulations promulgated under the Comprehensive Environmental Response,
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Compensation and Liability Act of1980~as amended by the Superfund Ame~dments and
Reauthorization Act of 1986~ andior in the environmental laws of the State of MInnesota, and
specifically including petroleum and relatecfhydrocarbons.and their hy~products~ asbestos, and
polychlorinated biphenyls) in~ on qr under the Redevelopment property~ except as expressly set forth
in the Environmental Reports.
(h) As.ofthedate ofexecutionoftl1is Agreement~theAuthority has received no notice or
communication from anylocal~ state or federal official that the anticipated activities of the Authority
with respect to the Redevelopment Propertymayhe or will be in violation of any environmental law
or regulation. Also asoHhy date of execution of this Agreement~theAuthorityis aware of no facts,
the yxistence ofwhich would cause ittobe in violation of any local~state orfederal environmental
law, regulation or review procedure or which would give any person a valid claim under the
Minnesota Environmental Rights Act.
(i) The Authority shall promptly share with the Redeveloperariy information which
comes to the attention of the Authority after the final execution ofthis Agreement and which relates
to hazardous substances 01), the Redevelopment Property, and will promptly provide copies to the
Redeveloper.ofany ryports, corryspondence and other documentation relating to the same.
(j) The City shall not increase its portion offees and expenses for the approval and
construction of the Project~ including the Minimum Improvemehts~throughOctober 3l~ 2005.
Section 2.2. Representations, Warranties and Covenants of the Redeveloper. The
Redeveloper represents~ warrants and covenants that:
(a) Subject to Unavoidable Delays~,the Redeveloper will purchase the Redevelopment
Property from the Authority pursuant to Article ill hereof and, in the event the Redevelopment
Property is conveyed to the Redeveloper, the ,. Redeveloper will construct the" Minimum
Improvements in accordance with theterms.oftl1is Agreement, the Project Plan and all local, state
and federal laws and regulations (including~ but not limited to, environmental~ zoning~ building code
and public health laws and regulations). .
(b) The Redeveloper will cooperate with the Authority to rezone the Redevelopment
Property. The Redevelopment Property is currently zoned "R~I,. Single Family Residential" in part
and "CB, Community Business" in part.
(c) The Redeveloper shall submit for City approval a planned unit development (the
"POO") for the Redevelopment Property.
(d) At such time or times as will be required by law, the Redeveloper will have complied
with all local, state and federal environmental laws and regulations relating to the construction of the
Minimum Improvements~ and will have obtained any and all environmental reviews, licenses or
clearances under (and will be in compliance with the requirements of) the National Environmental
Policy Act" the Minnesota EnvironmentalPoliCY,Act, and Minnesota Critical Areas Act of 1973
necessary for the .construction of the MininIum lrrtprovements.
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(e) As ofthe date of execution of this Agreement, the Redeveloper has received no notice
or communication from any local, state or federal official that the anticipated activities of the
Redeveloperwith respect to the Redevelopment Property may be or will be in violation of any
environmental law or regulation. Also as of the date of execution of this Agreement, the
Redeveloper is aware of no facts, the existence of which would cause it to be in violation of any
local, state or federalenvjronmentallaw, regulation or review procedure or which would give any
person a valid claim under the Minnesota Environmental Rights Act.
(f) The Redeveloper will obtain all.required permits, licenses and approvals, and will
meet, . in a timely manner, .all requirements of all applicable local, state and federal laws and
regulations which must be obtained or met before the Minimum Improvements maybe lawfully
constructed.
(g) The Redeveloper is a corporation organized under the laws ofthe State of Maryland,
is authorized to transact business in the State, has duly authorized the execution of this Agreement
and the performance of its obligations hereunder, and none of the execution and delivery of this
Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or
compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts
with, or results in a breach of, the terms of any indebtedness, agreement or instrument of whatever
nature to which the Redeveloper is a party or bywhich it is bound, or constitutes a default under any
of the foregoing.
(h) The Redeveloper agrees that it will cooperate with the Authority with respect to any
litigation commenced by third parties in connection with this Agreement.
(1) Redeveloper agrees that it will cooperate with the Authority and shall indemnify the
Authority against all costs, including the costs of defense incurred by the Authority, through an
attorney reasonably acceptable to the Authority and Redeveloper, with respect to any litigation
commenced by third parties in connection with Redeveloper's failure to perform according to the
terms and conditions of this Agreement.
CD The financing arrangements which the Redeveloper has obtained or will obtain to
finance construction of the Minimum Improvements will be sufficient to enable the Redeveloper to
successfully complete the Minimum Improvements as contemplated in this Agreement.
(k) The construction of the Minimum Improvements, in the opinion ofthe Redeveloper,
would not reasonably be expected to occur solely through private investment within the reasonably
foreseeable future without the assistance provided by the Authority pursuant to this Agreement.
(l) The Redeveloper shall construct the Minimum Improvements using the products and
materials described in Schedule I attached.
(m) The Redeveloper shall pay the normal and customary City fees and expenses for the
approval and construction of the Project including, but not limited to, bonding requirements, building
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permit fees, state surcharges, sewer accessibility charges (SAC), water accessibility charges (W AC)
and park dedication fees.
(n)TheRedeveloper will use its best efforts to preserve the large trees 011 the
RedevelopmentPropertyindicated 011 the survey furnished by the Authority.
(0) Once acquired, by the RedevelQper, the RedevelopmefitProperty shall not become
exempt from the levy of ad valorelp propertytaxes,or any statutorily authorized alternative, and any
improvern.ents of any kind constructed on the Redevelopment Property shall similarly not become
exempt until after the dissolution or other termim~tion of the Tax IncrementDistrict orDecember 31,
2031 (whighever is later). ,Notwithstanding the foregoing language, this restriction shall end upon
any tennifiation of this Agreement due to>a<.ief~uWby the Authority thans not tirriely cured as
allowed under this Agreement. .
(p) The Redeveloper agrees, notwithstanding the provisions of Article VI, that it will not
assign, conveyor lease any interest in the Redevelopment Property or any portion thereof, or this
Agreementor any portion thereof, toanytax-exern.ptentityunder the. U.S. InternalRevenue Code of
1986, as the same may be amended ,from time to tiITle, without the prior written approval of the
Authority (whose approvalshall be conditioned uponthe Redeveloperohtaining an agreement upon
terms reasonably satisfactory to the Authorityfrom its assignee or lesseeto make payments in lieu of
tax). ' .
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ARTICLE III
Conveyance of the Redevelopment Property;
Undertakin2"s of Authoritv and Redeveloper
Section 3,1. Acquisition of Private Property by the Authoritv. Subject to Unavoidable
Delays,.the Authority intends to acquire the Private Property in each Tract of the Redevelopment
Property so as to be able to complete the Public. Improvements thereon and convey the
Redevelopment Property according to the timetable set forth inSection 3 .3(b). If necessary the
Authority shall, exercise its powers of eminent domain pursuant to Minnesota Statutes, Section
117.011 et seq., all as provided and subject to the terms and conditions in this Agreement. The
Parties agree that the Authority shall not commence acquisition' proceedings pursuant to this
Agreement unless and until the applicable conditions precedent thereto provided in Section 3.2 shall
have been satisfied.
Section 3.2. ACQuisition of the Private Property.
(a) If the Authority is unable to acquire the Private Property through voluntary acquisition
by January 26,2004, then the Authority, subjectto the provisions of this Article m, agrees to acquire
the Private Property through the exercise of eminent domain (including the use of quick take) ,and to
,thereafter convey the Redevelopment Property to the Redeveloper, provided that:
(i) the Authority is able to make the necessary condemnation findings as required
by Minnesota Statutes Section 117.011et seq.,
(ii) the Redeveloper is in material compliance with all of the tenns and provisions
of this Agreement, and
(iii) the Redeveloper shall have provided evidence satisfactory to the Authority
that the Redeveloper is capable of financing the construction ofthe Minimum Improvements (which
evidence has, as of the date hereof, been provided and is satisfactory to the Authority).
(b) The Redeveloper acknowledges that acquisition of the Private P-roperty, whether by
voluntary acquisition or through exercise of eminent domain powers by the Authority, must include
compliance with applicable relocation requirements under federal and/or State law and that the
Authority shall negotiate and make any necessary relocation payments in connection with its
acquisition of the Private Property. The Redeveloper further acknowledges that compliance with
these requirements may delay the Authority's acquisition of the Private Property. The Authority
agrees to diligently seek to complete all such requirements as soon as practicable.
(c) The Redeveloper additionally acknowledges that, because of the many variables
inherent in any litigation or legal proceeding, the Authority does not represent or warrant in any way
the successful conclusion of any eminent domain action (by a quick take action or otherwise) or the
accomplishment of any particular result or timetable in connection with any such action.
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(d) Provided the conditions precedent outlined in this Article ill are met, the Authority
shall institute proceedings through its legal counsel and shall have the sole discretion to structure the
proceedings as it sees, fit. .
(e) If the Authority undertakes proceedipgs to acquire title to the Private Property in a
Phase and is not successful thenthisAgreem~l1tshalltenninate as it relates to that Phase, subj ect to
the provisions of Article IX.
Section 3,3~ ,Conveyance onhe Redevelopment PropertY.
(a) , Title. If th~. Authorityis successful in acquiring fee title to the Private Property then,
subj ect lothe teflllsbelow,the Authority shallcon'le)' marketable title to and possessionof each Tract
of the Reqevelqpment Prpperty 19 the RedeVeloper under a quitclaim deed in the form of the
Redevelopment PropertyDeed contained in Schedule B. The conveyance of title to the Redevelopment
Property pursuant to the Redevelopment Properry Deed shall be subject to all of the conditions,
covenants, restrictions and limitations imposedpythisAgreeplent and the Redevelopment Property
Deed. At its expense the Redeveloper shall obtain any title insurance itdeems necessary.
At its. expense, the Authority agrees for each Tract to obtain and shall deliver to the
Redeveloper a commitment for an 9wner'stitleinsurance policy (ALTA FonnB-1970) issued by a title
. insurance company acceptable to the Authority and Redeveloper, naming Redeveloper as the proposed
owner-insured of the Redevelopment Property in the amount of the Purchase Price (the
"CommitInent")., The COIllplitmentshall have a cl.lITent date as its effectiVe date and shall commit to
insure marketable title in the Redeveloper, freeClJld clear of all mechanics' lien claims, questions of
survey, unrecorded interests, rights of parties in possession or other exceptions. The Commitment shall
set forth alll.eviedreal estate an9 special assessplen~.rpe Comrnitlllentshall have attachedcopies of
all instruments of record which create any easements or l'estrictions which are referred to in Schedule B
of the Commitment. The Redeveloper will beallowed 20 days after receipt of the Commitment to
make an examination thereof and to plake anY objections to the marketability ofJhe Jitle to
Redevelopment Property, objections to be made by written notice to the Authority or to be deemed
waived.
If the title to theRedevelopment Property (or the applicable Tract thereof), as evidenced by the
Commitment and a boundary survey, as provided})y the Authority at its expense, together with any
appropriate endorsements, is not marketable of record and is not made so by the Date of Closing, 'the
Redeveloper may either:
(i) . Terminate this Agreement (entirely, or just as to the applicable Tract) by
giving written notice to the Authority, in which event this Agreement shall become null and void
(entirely, or just as to the applicable Tract).., and neither Party shall have any further rights or
obligations hereunder; or
(ii) . Elect to ,accept the title in itsun:marketable or existing condition by giving
written notice to the Authority,ip which eventthe Redeveloper shall hold back adequate funds from
13
Iijlll!'l
the. portion of the Purchase Price payable on the Date of Closing to cure the defects and apply such
holdback funds to the cost of curing such defects, including attorneys' fees, and pay the unexpended
balance to the Authority. If the amount of such holdback cannot be mutually agreed to by the
Authority and the Redeveloper, the issuer of the Commitment shall detennine the amount of such
holdback. The Authority will fully cooperate with the Redeveloperin attempting to cure any and all
such defects.
(b) Time of Convevance. Subjectto Section 3.1, the Authority shall execute and deliver to
the Redeveloper a Redevelopment Property Deed for each Tract of the Redevelopment Property as
follows:
(i) Tract I:. on or before April 20, 2004;
Oi) TractII: on or before July 1, 2004 (the Authority wiIluse its best efforts to
convey Tract n on or before June 1, 2004); and
(iii) Tract III: on or before September 1, 2004. Tract ill shall consist of all of the
Redevelopment Property not already conveyed in Tract I or Tract n.
A Closing may take place on such later' date as the Authority and the Redeveloper shall
mutually agree in writing. The Redeveloper shall take possession of each Tract of the Redevelopment
- Property on the Date of Closing. At the Closing for Tract I, the Authority may elect to include the
conveyance of one or more parcels from Tract II that are contiguous to TractI. At the Closing for Tract
II,. the Authority may elect. to include the conveyance of one or more parcels from Tract ill that are
contiguous to Tract I or n.
(c) Price and Pavment. After the Authority has acquired the Private Property as provided
for in Section 3.1, the Authority agrees to sell and the Redeveloper agrees to purchase the
Redevelopment Property for the price and payment described -in this Section 3.3.
Unless othelWise mutually agreed by the Authority and the Redeveloper, the execution and
delivery of all deeds and the payment of the purchase price shall be made at the principal offices of
the Authority. The price to be paid by the Redeveloper for the Redevelopment Property shall be the
product of$12,500 times the number of residential units constructed.
At the Closing for Tract 1, the Redeveloper shall deliver to the Authority the Redeveloper
Note and the Letter of Credit.
(d) Redevelopment Property Deed. Each Redevelopment Property Deed shall be in
recordable fonn and shall be promptly recorded.
( e) Survey. The. Authority shall provide and pay for a boundary survey for the
Redevelopment Property. .
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(f).. > Feasibility Studv.. The Redevelopershall have. the rightduringtheFeasibilityPeriod
to .investig~te . title and '.. to ... make.... such.. .investigations, '. studies. and. . tests ... with .....respect. to the
Redevelopment Property as the Redevel()perdeems necessary or appfopriateto determine the
fe~sibilityofpurchasingtheRedevelopmentProperty. .'fhe Redevelopershall give \Vrittennotice to
tlJ,e Al.lthoritY0I1QrlJefote!v1fU'ch...15,2Q04 of its deci~ion..to .proceed'with .theacquisition.of the
Redevelopment Property on the. terms hereof or terminate this Agreement. If the Redeveloper elects
to terminatethe Agreement, thereafterneitherR~y shall haveanyfurt~eropligationor liability to
theptherwithrespecttotb.etransactiol1sc(>ntemplatedp~thi~~~FTlUept except for the
RedeveloPer;s~n.qe~ficationofthe AuthoritYPursmmttothe1astselltenceoftl1isparagraph, which
shall survive termination ofthis Agreement. UI1<ler no circumstances shall anyexaminationofthe
Redevelopment Property be deemed to constitute a waiver or relinquishment on the Redeveloper's
part of its rights to rely on the covenants;. representations,. warranties, and agreements made by the
Authority herein. TheRedeveloper shall hold the Authority harmless from any liability resulting from
the.entering4pollfueRedevelppmentProperty ()rtheperformingofany of the tests or inspections
referred to in this paragraph by the R,edeveloper,* agents or designees.
(g) '.. Taxes and Special Assessments. ReaLestate taxes due and payable prior to the year of a
Closing for a Tract shall be paid by the Authority. Real estate taxes due and payable in the year ofsuch
Closing shall be prorated between the Parties to the applicable Date of Closing. Real estate taxes due
and payable in the year-ssubsequent to suchClo~Wgshallbe paid by the Redeveloper. The Authority
wilL pay all special assessments pending or l~viedas of the date of Closing, except . that the
. Redeveloper shall pay any unpaid original assessments for main and lateral water trunk charges.
(h) . Plat: Covenants; Easements.A1l.Trflctsmay be conveyed by current legal descriptions
ofthe parcels comprising that Tract. The Redeveloper at its expense shall prepare and submit a plat for
each Phase within 180 days of conveyance, and will file each such plat within [100] days after approval
thereof by the City. The Redeveloper shall pay for all required mOdifidationsto the plates). The
Redeveloper shall pay all costs for plats, replats, lot' splits, preparation of restrictive covenants,
easements, reciprocal easement .agreements and aIlyother documentation necessary for the acquisition,
construction, leasing and sale of the Minimum Improvements and all costs. of recording any such
documents.
Section 3.4. ConditionsPrecedentto Conveyance.
(a) The obligations of the Authority to convey each Tract of the Redevelopment Property to
the Redeveloper shall be subject to the following conditions precedent (in addition to those conditions
specified in Section 3.2):
(i) The Authority shall haVe acquired title.to and possession of the Private
Property in such Tract.
(ii). The. Redeveloper shalLbe in material compliance with all of the terms and
provisions of this Agreement, following any applisable grace, notice and/or cure period. .
15
(iii) The Redeveloper shall have received the appropriate permits for the
construction of the Minimum Improvements;
(iv) There shall have been no material adverse change in the Redeveloper's
financial commitment and ability to finance construction of the Minimum Improvements.
(v) The Redeveloper shall not be in default on the Redeveloper Note following
any applicable grace, notice and/or cure period.
(vi) The City shall have approved the PUD described in Section 2.2(c).
(vii) The Redeveloper shall have provided the Letter of Credit.
(viii) Each ofthe Redeveloper's representa.tions and warranties set forth in Section
2.2 shall be true as ofthe applicable Date of Closing and the Redeveloper shall so certify in writing at
each Closing.
(b) The obligations of the Redeveloper to purchase each Tract of the Redevelopment
Property shall be subject to the following conditions precedent:
(i) The Redeveloper's Land Committee shall have approved this Agreement.
(ii) The Authority shall have completed the Public Improvements with respect to
such Tract and complied with the other requirements set forth in Section 2.1(f).
(iii) The Construction Plans shall have been approved by the City.
3.3(h).
(iv) The City shall have approved a preliminary plat as provided for in Section
(v) There shall exist no general moratorium imposed or announced by any
governmental authority or utility supplier that would result in any governmental authority denying
permits necessary for the construction of the Minimum Improvements or any utility supplier denying
sanitary sewer, water, natural gas or electricity with respect to the Redevelopment Property, provided
that this condition shall be deemed to be satisfied upon the lifting of any such moratorium.
(vi) Each ofthe Authority's representations and warranties set forth in Section 2. I
shall be true as of the applicable Date of Closing and the Authority shall so certify in writing at each
Closing.
(vii) The Redeveloper shall, in the Redeveloper's good faith determination, be
satisfied that since the end of the Feasibility Period the environmental conditions relating to the
Redevelopment Property have not changed in a materially adverse way, other than as a result of any
actions of Redeveloper, its employees or agents.
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(c) In the .event the conditions precedent for either Party cannot be satisfied by the Date
of Closing, then, unless the Parties otherwise agree in writing, this Agreement shall terminate and
neither Party shall have liability to the other herel1llder. Upon such termination. the Parties shall enter
into an agreement in recordable formevidencingtl1e cancellation of this Agreement.
Section 3.5. Letter oiCredit. The Redeveloper shall furnish or cause to be furnished to the
Authority .anirreyocalJl~ Letter of Credit reasonably acceptable 'inform imd substance to the
Authority from a financial institution reasonabJy acceptabletotheAuthority inthe principal amount
of the Redeveloper Note.. The amount oftheLetterqf Credit may be reduced as principal payments
are made on ti1e Redeveloper Note. The balance of the' Letter of Credit shall be released upon
payment in full of the Redeveloper Note.
The Letter of Credit shall be held by the Authority as collateral to insure the repayment of the
Redeveloper Note.If the Redeveloper fails to make payments in accordance with the terms of the
Redeveloper Note, .the Authority may present. the Letter of Credit for payment, and, at the
Authority's option, use as much of the proceecis thereof as are necessary to make the delinquent
payment(s). Any excess proceeds from the Letter of Credit not needed to make the delinquent
payment( s) shall he paid to the Redeveloper. The Authority shall not present the Letter of Credit for
payment unless it shall have given Redeveloper notice as provided in Section 7.2, and Redeveloper
shall have failed to comply with the terms of sU9h notice within the time period specified in Section
7.2. Ifareplacement LetterofCreciit has not beenprovided thirty (30) days prior to the expiration of
-the term of the original Letter of Credit, then the notice to the Redeveloper is not necessary for the
Authority to present the Letter of Credit for payment.
Section 3.6. Documents at Closing.
(a) At each Closing, the Authority shall deliver to the Redeveloper:
(i) The Redevelopment Property Deed.
(ii) All certificates, instruments and other documents necessary to permit the
recording of the Redevelopment Property Deed.
(iii) A standard Seller's Affidavit properly executed on behalf of the Authority
with respect to judgments, bankruptcies, . tax liens,' mechanics' liens, parties in possession,
unrecorded interests,encroachrnent or boundary line questions and related matters.
(iv) If applicable, the owner's duplicate certificate oftitleto the Redevelopment
Property. The Authority shall not provide an abstract of title if property is classified as abstract
property, but the Authority shall provide, at its expense, the Commitment described in Section 3.3.
(v) An affidavit of the .... Authority. in . form' and cOntent satisfactory to the
Redeveloper stating that the Authority is not a "foreign person" within the meaning of Section 1445
of the Internal Revenue Code.
17
(vi) The certification described in Section 3.4(v).
(b) At each Closing the Redeveloper shall deliver to the Authority:
(i) With respect to the Closing for Tract I only, the Redeveloper Note and the Letter
of Credit.
3.4(a)(iv).
(ii) Evidence of the Redeveloper's financial commitment as required by Section
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ARTICLEJV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements. The Redeveloper shall construct and
pay for. all' Site Improvements described in Schedule G. . Subject to Unavoidable Delays,.the
Redevelopershall.begin constructionofthe Minimum Improvements on a.T ract no later than. thIrty
(30) days after conveyance of the Tract to the Redeveloper. The Redeveloper agrees that it will
construct the Minimum Improvements on the Redevelopment Property in accordance with this
Agreement and the approved Construction Plans.
Section 4.2. Construction Plans.
(a) Prior to the commencement of construction of the Minimum Improvements, the
Redeveloper shall submit Preliminary Plans to the Authority consisting of typical floor plans and
sketches ofthe typical exterior and interior of the proposed Minimum Improvements which illustrate
the size and character of the proposed Buildings. . The Preliminary Plans shall not be inconsistent
with the Site Plan, this Agreement or any applicable state and local laws and regulations, insofar as
said consistency may be determined at said preliminary stage. If approval of the Preliminary Plans is
requested in writing by the Redeveloper at the time of submission thereof to the Authority, the
. Authority shall approve or reject (in whole or in part) such Preliminary Plans in writing within
twenty (20) days after the date of receipt thereof. .lfno written rejection is made within said twenty
(20) days, the Preliminary Plans shall be deemed approved by the Authority. Anyrejection shall set
forth in detail the reasons therefor. If the Authority rejects the Preliminary Plans, in whole or in part,
the Redeveloper may submit new or corrected Preliminary Plans at any time after receipt by the
Redeveloper of the notice of rejection. The Authority's approval.of the Preliminary Plans shall not
be unreasonably withheld.
(b) Prior to the Redeveloper's commencement of construction of the Minimum
Improvements, the Redeveloper shall submit to the Authority Construction Plans for the Minimum
Improvements. The Construction Plans shall provide for the construction of the Minimum
Improvements and shall be in confonnity in all material respects with this Agreement, the
Preliminary Plans, and all applicable state and local laws and regulations. ~The Authority shall
approve the Construction Plans in writing if: (i) the Construction Plans conform in all material
respects to the terms and conditions of the Preliminary Plans and this Agreement; (ii) the
Construction Plans conform to all applicable federal, State and local laws, . ordinances, rules and
regulations: (iii) the Construction Plans are adequat~ to provide for the construction of the Minimum
Improvements; (iv) the Construction Plans do not provide for expenditures in excess of the funds
available to the Redeveloper for the construction of the Minimum Improvements; and (v) no Event
of Default has -occurred and is continuing.
No approval by the Authority shall relieve the Redeveloper of the obligation to comply with
the terms of this Agreement, the terms of the Program, applicable federal, State and local laws,
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ordinances, rules and regulations, or to construct the Minimum Improvements in accordance
therewith, No approval by the Authority shall constitute a waiver of any Event ofDefauIt.
Upon the Redeveloper's submittal of the Construction Plans to the Authority, such
Construction Plans shall be deemed approved unless rejected in writing by the Authority, in whole or
in part, within twenty (20) days after the date oftheir receipt by the Authority. Such rejection shall
set forth in detail the reasons therefor. Ifthe Authority rejects any Construction Plans in whole or in
part, the Redeveloper shall submit new or corrected Construction Plans within thirty (30) days after
written notification to the Redeveloper of the rejection. The provisions of this Section relating to
approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the
Construction Plans have been approved by the Authority. The Authority's approval shall not be
unreasonably withheld. Said approval shall constitute a conclusive determination that the
Construction Plans (and the Minimum Improvements, if constructed in accordance with said plans)
comply with the provisions of this Agreement relating thereto. The Construction Plans shall not be
rejected due to any objection which could have been raised upon review of the Preliminary Plans and
corrected more economically at that time.
(c) If the Redeveloper desires to make any material change in the Preliminary Plans or
Construction Plans after their approval by the Authority, then the Redeveloper shall submit the
proposed change to the Authorityfor its approval. If the Preliminary Plans or Construction Plans, as
modified by the proposed change, conform to the requirements of this Section 4.2 with respect to
. . such previously approved Construction Plans, the Authority shall approve the proposed change and
notify the Redeveloper in writing of its approval. Such change in the Preliminary Plans or
Construction Plans shall, in any event, be deemed approved by the Authority unless. rejected in
writing by the Authority, in whole or in part, within twenty (20) days after receipt of the notice of
such change, setting forth in detail the reasons therefor.
Section 4.3. Completion of Construction.
(a) Subject to Unavoidable Delays, the Redeveloper shall have substantially completed the
construction of the Minimum Improvements by December 31, 2006, except that any delay by the
Authority in conveying Tract ill of the Redevelopment Property shall extend the deadline for the
construction of the Minimum Improvements by a corresponding number of months.
All work with respect to the Minimum Improvements to be. constructed or provided by the
Redeveloper on the Redevelopment Property shall be in conformityin all material respects with the
Construction Plans as submitted by the Redeveloper and approved by the Authority.
(b) The Redeveloper agrees for itself, its successors and assigns, and every successor in
interest to the Redevelopment Property, or any part thereof, and the Redevelopment Property Deed
shall reference the covenants contained in this Section 4.3 and Section 7.3, that the Redeveloper, and
its successors and assigns, shall promptly begin and diligently prosecute to completion the
redevelopment of the Redevelopment Property through the construction of the Minimum
Improvements thereon, and that such construction shall in any event be completed within the period
specified in this Section 4.3.
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Section 4.4. Certificate of Completion. (a) Promptly after completion of the Minimum
Improvementsfor each Building in accordance withthe provisions ofthis Agreement relating to the
obligationsofthe Redeveloper to construct suchimprovements (including the date fOF completion
thereof), theAuthoritywillfunrishthel~~developer with a Certificate of Completion for such
auilding. ..... ".The..Certificate. ~fcompletion.shall b~ ....a...conclusiyedetermi~ationaI1d . conclusive
evidenceofthesa~isfactionandtennill~tiorjofthe agreementsandcoyenantsin t~is~gre:me~t. and
in . the Redeyelopment.PropertyDeedwith respect to the obljg~tipnsoftheR.edeYrloper' and its
sucqessors and assigns, to constrllct the Mini1l1umb:t1provementsforieach Buildingandthe.date for
thecompletionJhereof.
(b) If the Authority shall refuse or fail to provide tfle Certificate of Completion in
accordance witlHheprovisions of this Section 4.4 tl1eAuthority shall, withinr:venty(20) days after
written regllestbYtheRedeveloper,provide the Redeveloperwith'a wr-ittert statement, indicating in
adequatedetailiu)vhatrespectsthe Authority believes the R~develdperrasfailed to complete the
Minimum. Improvements in accordance with the provisions of thIS Agreement; oris otherwise in
default, and what measures or acts will be necessary,. in the opinion of ~he Authority, for the
Redeveloper to .takeorperform in order toobtainaCertificateoflComple~ion.
(c) The ,construction of the Minimum lrpprc)Vernents' fo]"eachBuildi~gshall be.deemed to
be completed in~ccordancewith the Redeveloper':sobligations b.e~eunder~henthe City has issued a
.certificateofoccllPancyfor any individual resideI:ltial!unit ofthatBuilding:
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ARTICLE V
Real Property Taxes and Insurance
SectionS.I. Real Property Taxes. Until the Termination Date, the Redeveloper shall pay
when due, prior to the attachment of <my penalty, all real property taxes payable with respect to the
Redevelopment Property in the years subsequent to delivery of the Redevelopment Property Deed.
Section 5.2. Insurance. (a) The Redeveloper will provide and maintain at all times during
the process of constructing the Minimum Improvements and, from time to time at the request of the
Authority, furnish the Authority with proof of payment of premiums on:
(i) builder's risk insurance, written on the so-called "Builder's Risk - Completed
Value Basis," in an amount equal to one hundred percent (100%) of the insurable value of the
Minimum Improvements at the date of completion, and with coverage available ill nonreporting form
on the so-called "all risk" form of policy. The interest of the Authority shall be protected in
accordance with a clause in form and content reasonably satisfactory to' the Authority;
(ii) comprehensive general liability insurance together with an Owner's
Contractor's Policy with limits against bodily injury and property damage of not less than $2,000,000
for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may
be used); and
(iii) workers' compensation insurance, with statutory coverage.
(b) All insurance required by this Article V shall be taken out and maintained in
responsible insurance companies selected by the Redeveloper which are authorized under the laws of
the State to assume the'risks covered thereby. The Redeveloper will deposit annually with the
Authority policies evidencing all such insurance, or a certificate(s) or binder(s) of the respective
insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article
V, each policy shall contain a provision that the insurer shall not cancel or modify it without giving
written notice to the Redeveloper and the Authority atleast thirty (30) days before the canceUationor
modification becomes effective. Not less than fifteen(I5) days prior to the expiration of any policy,
the Redeveloper shall furnish the Authority with evidence satisfactory to the Authority that the policy
has been renewed. or replaced by another policy conforming to the provisions of this Article V', or
that there is no necessity therefor under the tems hereof. In lieu of separate policies, the
Redeveloper may maintain a single policy, blanket or umbrella policies, ora combination thereof,
having the coverage required herein, in which event the Redeveloper shall deposit with the Authority
a certificate or certificates of the respective insurers as to.the amount of coverage in force upon the
Minimum Improvements.
(c) The Redeveloper shall, for time to time, provide the Authority with evidence
satisfactory to the Authority that the Redeveloper's subcontractors are maintaining workers'
compensation insurance with statutory coverage.
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ARTICLE VI
Prohibitions A~ainstAssi2nment and Transfen Indemnification
Section 6.1.. Representation as to Redevelopment.. The. Redeveloperrepresents and agrees
that jts' purchase ... of the Redevelopment Property, .'aI}d its other ,undertakings' pursuant. to this
Agreement, are, and will be used, for thepurpQseofredevelopmentofthe Redevelopment Property
and not for speculation in land holding. The RedevelQper furtherrecognizes that, in viewof(a) the
iITIPQrtanceofthe;re.qevelopment.of the. Redevelopment Rroperty to the . general welfare of the
, Authority;. (b)thesub$taI}tialfinahcingand ~tlIel" pUl>licaids that have been made available by the
City or the Authority fqr the purpose ofmClking such rede"fllopment possible; and (c )thefactthat
any act or transaction involving or resulting in asignificantchange in the identity of the parties in
control of the Re<leveloper Or the degree of their control. is for practical.. pUrposes a . transfer or
dispositionoftl1eprQperty thenQwnedby~e ~edeveloper,thequalificationsand identity of the
Redeveloperare:ofParticular cop-cym to. thej\utlIOl:ity,TheRedeveloper furilierrecognizes.that it is
because of$uch q.~alific~ti{)usaI}didentitytbaHl1e Autborityisentering i~to this i\greemenr ,:ith the
Redeveloper, aIld,iIFSO dqing,jsf\ll1her willing to accept and rely 'onthe.. obligations. of the
Redeveloper for the faithful performance oLall undertakings and covenants hereby by it to be
performed,
Section 6.2, Prohibition AgainstTransferofProuerty and Assignment of Agreement. Also,
for the. foregoing reasons the Redeveloper represents and agrees that prior to the earlier of the
issuance oftheflnal Certificate ofComp~etion for the Minimum Improvements or the Termination
Date:
(a) Exceptfor the purpose of obtaining flnancingnecessary to enable the Redeveloper or
any successor in interest to the Redevelopment Property, .or any part thereof, to perform its
obligations with respect to constructingthe Minimum Improvements under this Agreement, and any
other purpose authorized by this Agreement, the Redeveloper has not made or created and will not
make or crel;lte or sufferto he, made or created anY total or partial sale, assignment, conveyance, or
lease, or any trust orpqwer, or transfer.in. any other mode. or form of or with respect to this
Agreement or the RedevelopmentProperty or any partthereof or any interest therein, oranycontract
or agreement to do any ~f the same, without the pM or written approval of the.Authority unless the
Redeveloper remains liflble and bound by this Redevelopment Agreement in which event the
Authority's approval is pot required. Any sucl1trahsfershall be subj ect to the provisions of this
Agree~ent. NOt;withstandingthe foregoing, tl1e Redeveloper may transfer the Redevelopment
Property to any c9rporation, Partnership,pr limited liability, company controlling, controlled by, or
undercpmmon control 'Yiththe Redeveloper.
(b) . In the event the Redeveloper, upon transfer pr assignment of the Redevelopment
Property or any portion thereof, seeks to be released frpm itspbligations under this Agreement, the
Authority shall be entitled to require, exc.eptasptherwise protided in this Agreement, as conditions
to any s,uch release that:
23
, ~
(i) Any proposed transferee shall have the qualifications and financial
responsibility, in the reasonable judgment of the Authority, nec.essary and adequate to fulfill the
obligations undertaken in this Agreement by the Redeveloper. '
(ii) Any proposed transferee, by instrument in wntmg satisfactory to the
Authority and in form recordable among the land records, shall, for itself and its successors and
assigns, and expressly for the benefit ofthe Authority, have expressly assumed all ofthe obligations
of the Redeveloper under this Agreement and agreed to be subject to all of the conditions and
restrictions to whichthe Redeveloper is subject; provided, however, that the fact that any transferee
of, or any other succeSsor in interest whatsoever to, the Redevelopment 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 the
Authority} deprive the Authority of any rights, remedies or controls with respect to the
Redevelopment Property or any part thereof or the construction ofthe Minimum Improvements; it
being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at
law and inequity and excepting only in the manner and to the extent provided otherwise in this
Agreement) no transfer of, or change with respect to, ownership in the Redevelopment Property or
any part thereof, or any interest therein, however consummated or occurring, and whethervoluntary
or involuntary, shall operate, legally or practically, to deprive or limit the Authority of or with respect
to any rights or remedies or controls provided in this Agreement with respect to the Minimum
Improvements that the Authority would have had, had there been no such transfer or change. In the
. absence of specific written agreement by the Authority to the contrary, no such transfer or approval
by the Authority thereof shall be deemed to relievethe Redeveloper, or any other party bound in any
wayby this Agreement or otherwise with respect to the construction of the Minimum Improvements,
from any of its obligations with respect thereto.
(iii) Any and all instruments and other legal documents involved in effecting the
transfer of anY interest in this Agreement or the Redevelopment Property govemed by this Article VI
shall be in a' form reasonably satisfactory to the Authority.
In the event the foregoing conditions are satisfied, then the Redeveloper shall be released from its
obligation under this Agreement, as to the portion of the Redevelopment Property that is transferred,
assigned or otherwise conveyed.
Section 6.3. Release and Indemnification Covenants.
(a) The Redeveloper covenants and agrees that the City, the Authority and the governing
body members, officers, agents, servants and employees of either of them (collectively, the
"Indemnified Parties") shall not be liable for and agrees to indemnify and hold harmless the
Indemnified Parties against any loss or damage to property or any injury to or death of any person
occ~ng at or resulting from any defect in the Minimum Improvements, due to any act, including
neglIgence, of the Redeveloper or of others acting on the behalfor under the direction or control of
the Redeveloper; provided, however, that the Redeveloper's indemnification obligations in this
subparagraph (a) shall not apply to any loss resulting from negligent, willful or Wanton misconduct
of any of the Indemnified Parties.
24
(b) ". Th~ Redeveloper agrees to protect and defend the Indemnified Parties, now or
forever, and further agrees to -hold the Indemnified Parties hannless from any claim, demand,. suit,
action or other proceeding by any person or entity arising or purportedly arising from this Agreement
or. the transa~tipnsc<:mtelllplate4.herepy ()rthe~qqpisition;CQnstruction,instanation, ownership, and
operatioupftheM:iniml.llllln1PI;oYemeuts,Jiu~t()~yact,inGludingnegligence,..ofthe. Redeveloper
o~.Rf9thers aqtipgor$ebel1alf9f uPderthe4irectiou or. controJ,,'of the Redeveloper;. prIDvided,
howeYer,!hat~eR.edeveloper!sipdenuUfic?ti?l]()pli~~tiopsinthissup~aragrapl1(b).shallnot apply
to{i)anyl1os~.r~sllltipgp-()lllapYPe~ligent 'pr~i.nft11tpisr~~esentationQrapy negligent,..willful. or
wfIDton.miscondu~tofanyqfJl1eIn~eIJ:)llifie4~;1I1iesor(ii) theuseof:eminentdomain if exercised
py the.AJ1th9ritY.tg.~9q~irethe Private ~rppet1y.'
NOilepfthe Wdemnifie4 partirssl1~lI be liable for any dan1ageori~jury to the person
orpropert~()ft~el~'eqpvelppel'()r itsqfficers,agepts, servants Or employees oranyotherperscm who
maybe o~or~pOHt ~l1e'" :Recleye10plp.el1tgn>pel(ty or Minimum Improvements due to any act or
I1egligepge. Of~J:lY HCf"~9p, ()tl1erthap tl1e 'negligel1~e. or misc()nduct ofanInq,emnified Party.
"'I';,,:.,,'.,.::::!,:"!::;'_-;',:: , _, ", ',,' :'_,' '-',':
. (d), ..~o~~ 9~the Indetnnified p(lrtiessllaII be liable to the Redeveloper-or to any third
party for. anY c~~srall~ptial()rother daIp~ges that may arise out of delays of any kind relating to
ac!ivities\fnden~~nlJ?ursuan~tothis Agreellle*; including but not .1iI\nited to. dela~sdueto
envirowneptaLppn~it~()p~,couI!t;cllall~nges or. el~Ipents outside the control of the Authority;
(e) ~Il80Y~~ants,stipul*ions,. promises~ agreements and obligatioI1softheAuthority
contained herei~ s~anbe deemed to be the covenants, stipulations, promises,' agreements and
obligations of the Authority and not. of anygoVyrning body member, officer, agent, servant or
employee of the Authority in the individual capacity thereof.
(f) . ~othingjn this Section6.3is intended to waive any municipal liability limitations
contained in Minnesota Statutes, particularly Ckapter 466.
25
ARTICLE VII
Events of Default
Section 7.1. Events of Default Defined. Subject to Unavoidable Delays, the following shall
be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever
it is used in this Agreement (unless the context otherwise provides), anyone or more ofthe following
events:
(a) Failure bytheRedeveloper to pay when due all real property taxes assessed against
the Redevelopment Property.
(b) Failure of the Redeveloper to submit reasonably satisfactory Construction Plans in
accordance with Section 4.2.
(c) Failure by the Redeveloper to commence or complete construction of the Minimum
hnprovernentspursuant to the terms, conditions and limitations of Article IV.
(d) Failure. by the Redeveloper to substantially observe or perform any other covenant,
condition, obligation or agreement on its part to be observed or performed hereunder.
(e) The Redeveloper shall:
(i) file any petition in bankruptcy or for any reorganization, arrangement,
compOSItIOn, readjustment, liquidation, dissolution or similar reliefunder the United States
Bankruptcy Code or under any similar federal or state law; or
(ii) make an assignment for the benefit of its creditors; or
(iii) admit in writing its inability to pay its debts generally as they become due; or
(iv) be adjudicated as bankrupt or insolvent; orif a petition or answer proposing
the adj udication of the Redeveloper asa bankrupt or proposing its reorganizatiDn under any present
or future federal bankruptcy act or any similar federal or State law shall be filed in any court ~d
such petition or answer shall not be discharged or denied within ninety (90) days after the filing
thereof; Or a receiver, trustee or liquidator of the Redeveloper or ofthe Redevelopment Property, or
part thereof shall be appointed in any proceeding broUght against the Redeveloper and shall not be
discharged within ninety(90) days after such appointrnent,or if the Redeveloper shall consent to or
acquiesce in suchappointrnent.
Section 7.2. Rernedies on Default. Whenever any Event of De fault referred to in Section 7.1
occurs, the Authority may take anyone or more of the following actions after providing thirty (30)
days' written noticeto the Redeveloper of the Event of Default, but only if the Event of Default has
not been cured within said thirty (30) days, or if the Event of Default is not reasonably susceptible to
26
being cured within said thirty (30)-dayperiod (whetherdue to Unavoidable Delays or ?therwise!, and
the Redeveloper fails to provide the Authority with written assurances, deemed satIsfactory In the
reasonable discretion oftheAuthority~tl1att4egyeIltofDefault will be cured as soon as reasonably
possible:
(a) Suspend its performance under this A:greementuntil it receives aSsurances from the
R~developer,deemedadequatebythe.Authority, that the Redeveloper will.cure its default and
continue its perfomlance'underthis Agre~ment.
(b) Terminate this Agreement.
(c) Withhold any Certificate of Completion.
(d) Take whatever action,includinglegal, equitable or administrative action, which may
appear necessary or desirable to. the Authority, including any actions to collect any payments due
under this Agreement, or to enforce performance and observance of any obligation. agreement, or
covenant of the Redeveloper under this Agreement.
Section 7.3. Revesting Title in Authority Upon Happening of Event Subsequent to
Conveyance toRedeveloper,fu theeveIltthat subsequent to conveyance of the Redevelopment
Property to the Redeyeloper and prior to either the receipt by the Redeveloper ofthe final Certificate
, of Completion or the TenninationDate:
(a) subject to Unavoidable Delays, the Redeveloper fails to carry out its obligations with
respect to the construction of the Minimum Improvements (including the nature and the date for the
commencement and completion thereof),orabandol1s or substantially suspends construction work,
and any such failure, abandonment, or suspension shallnot be cured, ended, remedied or assurances
reasonably satisfactory to the Authority made within ninety (90) days after written demand from the
Authority to the Redeveloper to do so;. or
(b) the Redeveloper fails to pay any real estate taxes or assessments on the
Redevelopment Property or any part thereof when due (which taxes or assessments the Redeveloper
is responsible for hereunder) or creates, suffers, assumes, or agrees to any encumbrance or lien on the
Redevelopment Property which is. WIauthorized by this Agreement, or shall suffer any levy or
attachment to be made, or any materialmen's or mechanics' lien, or any other unauthorized
encumbrance or lien to attach, and such . taxes or assessments shall not have been paid, or .'the
encumbrance Or lien removed or discharged or pr~>visi()n reasonably satisfactory to the Authority
made for such payment, removal, or discharge, within ninety (90) days after written demand by the
Authority to do. so; provided, that if the RedevelopershaU first notify the Authority ofits inteQtion to
do so, it may in good faith contest any mechanics' orother lien filed or established and in such event
the Authority 5hall permit such mechanics' or other lien to remain undischarged and uns.atisfied
during the period of such conte.stand any appeal, but onl)' ifthe Redeveloper provides the Authqrity
with a bank Jetter of credit or other security in the amount of the lien, in a form reasonably
satisfactory to the Authority pursuant to which the bank or other obligor will pay to the Authority the
amount of such li~n in the event that the lien is finally determined to be valid. During the course of
27
such contest the Redeveloper shall keep the Authority infonned respecting the status of such defense;
or
(c) there is, in violation of this Agreement, any transfer of the Redevelopment Pz:operty,
or assignment ofthis Agreement, in whole or in part, or a change in control of the Redeveloper, and
such violation shall not be cured within ninety (90) days after written demand by the Authority to the
Redeveloper;
Then the Authority shall have the right to re-enter and take possession ofthe Redevelopment
Property, .to terminate this Agreement and to terminate (and revest in the Authority) the estate
conveyed by the Redevelopment Property Deed to the Redeveloper, it being the intent of this
provision, . together with other provisions of the . Agreement, that the conveyance of the
Redevelopment Property to the Redeveloper shall be made upon, and that the Redevelopment
Property Deed shall contain, a condition subsequentto the effect that inthe event of any default on
the part of the Redeveloper and failure on the part of the Redeveloper to remedy, end, or abrogate
such default within the period and in the manner stated in this Agreement, the Authority at its option
maydeclare a termination in favor ofthe Authority of the title, and of all the rights and interests in
and to the Redevelopment Property, .conveyed to the Redeveloper, and that such title and all rights
and interests of the Redeveloper, and any assigns or successors in interest to and in the
Redevelopment Property, shall revert to the Authority,. but only if the event or events stated in
subparagraphs (a) through (c) of this Section 7.3 have not been cured within the applicable time
period provided above.
Notwithstanding anything to the contrary contained in this Section 7.3, the Authority shall
have no right to re-enter or retake title to and possession of any part of the Redevelopment Property
for which a Certificate of Completion has been issued or following the Termination Date.
Section 7.4. Resale of ReacQuired Property; Disposition of Proceeds. Upon the revesting in
the Authority oftitle to any parcel oftheRedevelopment Property or any part thereof as provided in
Section 7.3, the Parties shall have no further responsibility to each other hereunder with respect to
that or any subsequent parcel and the Authority may sell or otherwise devote said parcels to such
other uses as the Authority shall in its sole discretion determin~, without reimbursement of any sums
paid by the Redeveloper to the Authority under this Agreement.
Section 7.5. Authority Default. Subject to Unavoidable Delays, the term "Authority
Default" shall mean either or both of the following events: '
(a) Failure by the Authority to diligently pursue acquisition of the Private Property
pursuant to Sections 3.1 and 3.2.
(b) Fai1ure by the Authority to substantially observe or perform any other covenant,
condition, obligation or agreement on its part to be observed or performed hereunder.
Section 7.6. Remedies on Authoritv Default. Whenever any Authority Default referred to in
Section 75 occurs, the Redeveloper may take anyone or more of the following actions after
28
providing thirty (30)days'written notice to the Authority oftheAuthorityDefau~t, but only.ifthe
Authority Default has not been cured within said thirty (30) days, or if the Authonty Default IS not
reasonably susceptible to being cured within said thirty (30)-dayperiod (whether due to Unavoidable
Delays or qtherwise),and the Authority fails to provide the Redeveloper with written assurances,
deemed satisfactory inthe reason,ablediscretiOl1 "fthe Redeveloper, thaJ the Authority Default will
be Cl:ln;:das soon as reasonably possible:
(a) If the Authority Default consists of a failure by the Authority to complete Public
Improvements, the Redeveloper may complete such Public Improvements and offset the cost thereof
against the principal amount oftheRedeveloper Note.
(b) Tenninate this Agreement as to any Phase not conveyed to the Redeveloper by
September 1, 2004.
(c) If the Authority Default consists of a failure by the Authority to convey all of the
Redevelopment: Property to the Redeveloper by September 1, 2004, paragraph 3.b. of the
Redeveloper Note shall not apply until all of the Redevelopment Property is conveyed.
Section. 7.7, . No Remedv Exclusive. No remedy herein conferred upon or reserved to the
Authority or Redeveloper is intended to be exclusive of any other available remedy or remedies, but
each and .every sitch remedy shall be cumulative and shall be in addition to every other remedy given
-under this Agreement or now or hereafter existing .atlaw or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be exercised
from time to timy .and as often as may be deeItIed ~xpedient. In order to entitle the Authority or the
Redeveloper to eXercise any remedy reservedto it, it shall not be necessary to give notice, other than
such notice as may be required in this Article VIT.
Section 7.8. No Additional Waiver Implied by One Waiver. In the event any agreement
contained in this Agreement should be breacheq byeitherParty and thereafter waived by the other
Party, . such waiver..shall be limited.to the particular breach so waived and shall not be deemed to
waive any other concurrent, previous or subsequent breach hereunder.
Section 7.9. Financing: Subordination.
(a) The Authority recognizes that the Redeveloper may obtain financing from a
commercial lender (the "Lender") to finance the Site Improvements and the construction of the
Minimum Improvements (the "Construction Loan") and, that in order to do so,. the Lender may
require a first mortgage or other lien ("Mortgage'') on the RedevelopmentProperty which is prior to
the rights of the Authority under this Agreement and that the Authority will have to subordinate such
rights.
(b) The Authority will agree that the Lender ofthe Construction Loan shall have the right,
at its option, to cure or remedy any breach or default of the Redeveloper, including any breach or
default with respect to completion of the Site Improvernents and construction of the Minimum
29
Improvements, provided the Lender has first expressly assumed the obligations to the Authority (by
written. agreement satisfactory to the Authority) to complete the Minimum Improvements on the
Redevelopment Property or the part thereof which is subject to the lien of the Mortgage. Upon
request of the Lender, the Authority will agree to notify the Lender of any default of the Redeveloper
under the terms of this Agreement. Uponrequest-of the Authority, the Lender will agree to notify the
Authority of any default of the Redeveloper under the terms of the Construction Loan. The
Authority shall have the right, at its option, to cure or remedy any breach or default with respect to
the Redeveloper's Construction Loan and shall have any redemption rights in the event of
foreclosure.
(c) Additional conditions for the Authority subordinating its interests in this Agreement
and approving a Mortgage include the following:
(i) All of the Construction Loan proceeds. will be used solely for the design and
preparation of the Redevelopment Property to construct the Minimum Improvements, the acquisition
ofthe Redevelopment Property and costs of the Site Improvements;
(ii) Subject to the Authority's approval, the Construction Loan proceeds will be
disbursed by a title company pursuant to a Construction Loan disbursing agreement or similar
agreement among the Redeveloper, the Lender and the title company whereby the title company will
oversee the payment for all work which may give rise to mechanics' liens;
(iii) The Authority shall have the right to review the Construction Loan documents
to reasonably satisfy itselfthat sufficient funds are or will be available to complete construction of
the Minimum Improvements.
(d) Upon the Redeveloper's perfonning the above conditions, the Authority agrees that any
and all right ofthe Authority under this Agreement and the Redevelopment Property Deed, including
without limitation:
(i) any and all rights of the Authority to the payment or use of the Net Proceeds of
insurance pursuant to Article V; and
(ii) any and all rights of the Authority to re-enter and retake possession of the
Redevelopment Property and to revest to the Authority the estate conveyed by the Redevelopment
Property Deed to the Redeveloper pursuant to Section 7.3 and pursuant to the Redevelopment Property
Deed,
shall be subject and subordinate to the lien of the Mortgage and to the rights, interests and remedies of
the Lender and its successors and assigns (including the purchaser at any foreclosure sale or the
transferee of allY transfer in lieu of foreclosure) under the Mortgage. The Authority further covenants
and agrees that apurchaser ata foreclosure sale or the transferee of any transfer in lieu of foreclosure
shall take title to the mortgaged property free and clear of all rights of the Authority, its successors and
assigns under this Agreement.
30
(e) The Authority agrees that atthe time of the closing oftheConstructiortLoan, it will
enter into a. subordination agreement in accordancewitlithis Section 7,9 in [ortrland content
reasonably. acceptable to the Lender.
(f) 1be.following shalLbe exceptions to the Authority's obligation to subordinate its
rightspurSllarltto<this ArticleVTI:
(j) Sec~i()n 2.2(0) (prohibition on the Redevelopmertt Pro:perty or Minimum
Improvements becoming exempt from ad valorem property taxes),
(ii) Section 2.2(p) (prohibition on conveyance of the Redevelopment Property or
MinirnumImprovements to.a tax~exempt erttity),and
(iii) Article IX (termination)
31
ARTICLE VIII
Additional Provisions
Section 8.1. Conflict of Interest. No.member, official, or employee of the Authority shall
have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official,
or employee participate in any decision relating to the Agreement which affects his or her personal
interests or the interests of any corporation, partnership, or association in which he or she is, directly
or indirectly, interested.
Section 8.2. Authority Reoresentatives Not Individuallv Liable. No member, official, or
employee oftheAuthority shall be personally liable to the Redeveloper, or any successor in interest,
in the event of any default or breach by the Authority or for any amount which may become due to
the Redeveloper or successor or on any obligations under the terms of this Agreement, except in the
case of willful misconduct.
Section 8.3. Eaual Employment Opportunity. The Redeveloper, for itself and its successors
and assigns, agrees that during the construction of the Minimum Improvements it will comply with
all applicable equal employment . opportunity and, non-discrimination laws, ordinances and
regulations.
Section 8.4. Signs~ Sales Trailer~ Storage of Equipment. At any time during the term hereof,
and untilthe Redeveloper's completion oftheconstruction of the Minimum Improvements, the
Redeveloper shall have the right to place signs and a sales trailer on the Property and to conduct
marketing activities thereon in areas approved by the Authority, such approval not to be
unreasonably withheld, conditioned or delayed. The Redeveloper shall restore any areas of the
Redevelopment Property damaged by such activities and shall, if this Agreement is terminated,
return the same to the Authority in good. condition, free of rubbish and debris. Redeveloper shall also
keep the Redevelopment Property free of any liens or third-party claims resulting from such
activities. Prior to the conveyance of Tract n, .the Authority shall also provide, at no cost to the
Redeveloper, adequate space on the Redevelopment Property for storage of construction equipment
and materials that the Redeveloper and its contractors and their subcontractors may from time to time
require. Such space shall he located in an area mutually acceptable to the Parties and easily
accessible to the Redeveloper and its contractors and their subcontractors. The Redeveloper shall
indemnify the Authority against any liability or expense for injuries to or death of persons or damage
to property arising from the exercise by the Redeveloper of the activities set forth in this Section.
Section 8.5. Arbitration. The Parties agree that except for equitable remedies, which the
Parties may (but are not required to) pursue in court, all disputes hereunder shall be settled by
binding arbitration conducted bya neutral arbitrator selected by the American Arbitration
Association or other third-party arbitration organization agreed upon by the Parties at the arbitrator's
offices closest to the Redevelopment Property. The arbitration shall be conducted according to the
American Arbitration Association Commercial Arbitration Rules or such other procedures as may be
agreed upon by the Parties. The Parties agree to (a) join into the arbitration proceeding hereunder or
32
(b )join any other arbitration proceeding being conducted by persons or entities related to the dispute
that may be necessary to completely resolve the dispute. The award of the arbitrator shall be final,
binding and enforceable. The arbitrator ~hall hay~the~uthority, power andrightto award damages
and provide for other remedies as are available at law or in equity in accordance with the laws ofthe
State.
Section 8.6. . Provisions Not Merged With Deed. None of the pr()visio~s ofthisAgteement
are intended to orshalLbemerged;by reaspnof any deed . transferring any' interest in the
RedevelopmentProperty and any such deed shall npt be deemed to affect or impair the provisions
and covenants of this Agreement.
Section 8.7... Titles of Articles and Sections. Any titles ofthe several articles and sections of
this Agreement are inserted for convenience of reference only and shall be disregarded in construing
or interpreting any of its. provisions.
Section 8.8, Notices and Demands. Except as otherwise expressly provided' in this
Agreement, a notice, demand, or other communication under this Agreement by either Party to the
other shall be sufficiently given .or delivered if it is dispatched by registered or certified mail, postage
prepaid, return receipt requested, transmitted by facsimile, delivered bya recognized overnight
courier or deliver~dperspn",lly to the following addresses:
If to the Redeveloper:
The Ryland Group, Inc.
7600 Executive Dr
Eden Prairie, MN55344
Attn: Chris Enger, Land Resources Manager
If to the Authority:
New Hope Economic DevelopmentAuthority
4401..XylonAvN
New Hope, MN 55428
Attn: Daniel J.Donahue, City Manager
or at such other address with respect to either Party as that Party may, from time to time, designate in
writing and forward to the other as provided in this Section.
Section 8.9. Counterparts. This agreement maybe executed in anynumberof counterparts,
each of which shall constitute one and the same instrument.' ..
33
ARTICLE IX
Termination of A1!reement
Section 9.1 Termination. This Agreement shall terminate upon its Termination Date and the
discharge of all of the Authority's and Redeveloper's other respective obligations hereunder, but no
such termination shall terminate any indemnification or other rights or remedies arising hereunder
due to any Event of Default or Authority Default which occurred and was continuing prior to such
termination.
Section 9.2 Effect of Termination. Upon a termination of this Agreement pursuant to this
Article IX, this Agreement shall be null and void and neither Party shall have any further obligations or
liabilities hereunder except as specifically stated in this Agreement. Upon such termination the
Redeveloper and Authority shall deliver to each other such documents as may be necessary to evidence
the termination of this Agreement.
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in
its name and behalf and the Redeveloper has caused this Agreement to be duly executed on or as of
the date first above written.
G:IWPDA T AINWEW HOPEI18\DOCICONTRACT V1.00C
34
Dated:
,2004
NEW HOPE ECONOMIC DEVELOPMENT
AUTHORlTY
By
Its President
By
Its Executive Director
8T A TE OF MINNESOTA )
)ss
COUNTY OF HENNEPIN )
On this ---'- day of , 2004 before me, a notary public within and for
Hennepin County, personally appeared and
to me personally known who by me duly sworn, did say that they are
the President and Executive Director, respectively, of the New Hope Economic Development
Authority, a public body corporate and politic under the laws of Minnesota, and acknowledged the
foregoing instrument on behalf of said Authority.
Notary Public
Authority Signature Page - Contractfor Private Redevelopment
35
'"'~
Dated:
,2004
THE RYLAND GROUP, INe.
By
STATE OF MINNESOTA )
)ss
COUNTY OF )
On this ~ day of , 2004 before me, a notary public within and for
County, personally appeared Kipling W. Scott and , the
Senior Vice President and , respectively, of The Ryland Group, Inc., a
Maryland corporation, and acknowledged the foregoing instrument on behalf of said corporation.
Notary. Public
Redeveloper Signature Page - Contract for Private Redevelopment
36
SCHEDULE A
DESCRIPTION OF REDEVELOPMENT PROPERTY
A-I
,-
SCHEDULE B
REDEVELOPMENT PROPERTY DEED
THIS INDENTURE, made this _ day of , 2004, between the New
Hope Economic Development Authority,. a public body corporate and politic under the laws of
Minnesota (the "Grantor"), and The Ryland Group, Inc., a Maryland corporation (the "Grantee").
WITNESSETH, that Grantor, in consideration of the sum of One Dollar ($1.00) and other
good and valuable consideration the receipt whereofis hereby acknowledged, does hereby convey
and quit claim to the Grantee, its successors and assigns forever, all the tract or parcel ofland lying
and being in the County of Hennepin and State of Minnesota described as follows:
See Exhibit 1 Attached
together with all hereditaments and appurtenances belonging thereto, Grantor covenants and
represents that:
Grantee has committed to construct certain improvements and Grantor has a right of
re-entry in accordance with Sections 4.3 and 7.3, respectively, of the Contract for
Private Redevelopment by and between the New Hope Economic Development
Authority and The Ryland Group, Inc. dated ,2004; The completion of
the improvements and the release of.the right of re-entry shall be evidenced by the
recording of the Certificate of Completion and Release of Forfeiture attached' as
Exhibit 2 to this deed.
The Grantor certifies that the Grantor does not know of any wells on described real property.
B-1
IN WITNESS WHEREOF, the Grantorhas caused this deed to be duly executed in its
behalf by its President and its Executive Director the day and year written above.
NEW HOPE ECONOMIC DEVELOPMENT
. AUTHORITY
By
Its Fresident
By
Its Executive Director
STATE OF MINNESOTA )
) ss
COUNTY OF HENNEPIN )
On this _ day of , 2004 before me, a notary public within and for
Hennepin County, personally appeared and
to me personally known who by me duly sworn, did' say that they are the President and Executive
Director, respectively,ofthe New Hope Economic Development Authority, a public body corporate
and politic underthe laws of Minnesota, and acknowledged the foregoing instrument on behalf of
said Authority.
Notary Public
This instrument was draftedhy:
Krass Monroe, P.A.
8000 Norman Center Drive, Suite 1000
Minneapolis, MN 55437-1178
B-2
EXHIBIT 1
LEGAL DESCRIPTION
B-3
EXHIBIT 2
CER TIFICA TE OF COMPLETION AND RELEASE OF FORFEITURE
WHEREAS, the NewHope Economic Development Authority, a public body corporate and
politic under the laws of Minnesota (the "Grantor''), bya Deed recorded inthe Office of the County
Recorder or the Registrar of Titles in and for the County of Hennepin and State of Minnesota, as
Deed Document Number(s) and , respectively, has conveyed to The Ryland
Group, Inc.,. a Maryland corporation (the "Grantee"), the following described land in County of
Hennepin and State of Minnesota, to-wit
WHEREAS, said Deed contained certain covenants and restrictions, the breach of which by
Grantee, its sucCessors and assigns, would result in a forfeiture and right of re-entry by Grantor, its
successors and assigns, said covenants and restrictions being set forth in said Deed; and
WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in
. a manner deemed sufficient by the Grantor to permit the execution and recording of this certification;
NOW, THEREFORE, this is to certify that all building construction and other physical
improvements specified to be done and made by the Grantee have been completed and the above
covenants and conditions in said Deed have been performed by the Grantee therein and that the
provisions for forfeiture of title and right to fe-entry for breach of condition subsequent by the
Grantor therein is hereby released absolutely and forever insofar is it applies to the land described
herein, and the County Recorder or the Registrar of Titles in and for the County of Hennepin and
State of Minnesota is hereby authorized to accept for recording and to record this instrument, and the
filing of this instrument shall be a conclusive. determination of the satisfactory termiQation of the
covenants and conditions referred to in said Deed, the breach of which would result in a forfeiture
and right of re-entry.
B-4
",,",..p "f.
, .~
Dated:
,200
NEW HOPE ECONOMIC DEVELOPMENT
AUTHORITY
By
Its President
By
Its Executive Director
STATE OF MINNESOTA )
)ss
COUNTY OF HENNEPIN )
On this _ day of , 20_ before me, a notary public within and for
Hennepin County, personally appeared and
tome personally known who by me duly sworn, did say that they are the President and Executive
Director, respectively, of the New Hope Economic Development Authority, a public body corporate
and politic under the1aws of Minnesota, and acknowledged the foregoing instrument on behalf of
said Authority.
Notary Public
B-5
SCHEDULE.C
ENVIRONMENTAL REPORTS
A listing ofthe environmental reports and other documents available from the Authoritywith respect
to the Redevelopment Property and as of the date of this Agreement are as follows:
5340 Winnetka A venue North
1. Memorandum dated July 14, 1999 from Vince Vander Top ofBonestrooRosene Anderlik &
Associates to Sue Henry of regarding abandonment of septic system. Attached
thereto, invoice dated July 19, 1999 from Dave Perkins Contracting me. to Bonestroo Rosene
Anderlik & Associates for removal of septic tank.
5524 Winnetka Avenue North
1. Underground Storage Tank Excavation Report dated September'10, 2002 from RichardE.
Hansen, PO of Braun mtertec Corporation to the City regarding removal of an underground
storage tank ("UST").
(
. 2. Letter dated September 18, 2002 from Ken P. Doresky of the City to Mr. and Mrs. Lloyd
LaBorde (then owners of 5 524 Winnetka Ave. N) regarding removal of the UST from their
property.
5550 Winnetka Avenue North
1. Memorandum dated November 1, 2000 from Jelil Abdella of the MPCA to Kirk McDonald
of the City.
2. Letter dated October 30, 2000 from Doug Bergstrom of Diversified Environmental, mc. to
Phil Kern of the City.
3. Letter dated October 3, 2000 from Steven A. Sondrall of Jensen & S9ndrall,P.A. to Kirk
McDonald ofthe City.
4. Letter dated October 3,2000 from Steven A. Sondrall of Jensen & Sondrall, P.A. to Jerry
Purtell ofUnocal Corporation.
5. Letter dated September 26,2000 fromJelil Abdella of the MPCA to Kirk McDonald of the
City.
6. Letter dated June 18, 1990 from MPCA staff to J.. E. Purtell ofUnocal Corporation.
C-l
,.....,~ .
7. STS Consultants Ltd., July 31, 1989 - Site Exploration for the Property Located at 5550
Winnetka A venue, New Hope, Minnesota, prepared for Unocal Corporation.
8. Letter dated August 25, 1988 from Kenneth C. LeV oir of the MPCA to Union Oil Company
of California transmitting Letter of Intent to Proceed " with Petroleum Tank Release
Investigation and Site Stabilization.
9, Letter dated June 7,1988 from Kenneth C. LeVoirofthe MPCA to Francis G.Koch ofBosa
International, Inc. (operator of donut shop on site after gas station was demolished)
transmitting Letter of Intent to Proceed with Petroleum Tank Release Investigation and Site
Stabilization.
10. STSConsultants Ltd., April 26, 1988 - Preliminary Environmental. Reconnaissance for
Property Transfer at 5550 Winnetka Avenue, New Hope, Minnesota, prepared for First
Interstate Bank.
11. Subterranean Engineering Inc., February 1975 - Soil and Foundation Investigation,
Winchell's Donut House, S.E. Cor. Bass Lake Rd. & Winnetka Ave., New Hope, Minnesota,
Prepared for Denny's Incorporated.
C-2
SCHEDULE D
CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE
WHEREAS, the New Hope Economic PeveloprnentAuthority, a public body corporate and
politic under the laws of Minnesota (the "Grantor"), by a Deed recorded in theOffice of the County
Recorder or. the Registrar of Titles in and for the County, of Hennepin and State of Minnesota, as
Peed DocuIl1entNwnber(s) .... and . .,respectively,hasconve)'edtoThe Ryland
Qrpup,In(l" a Maryland (loI'poration; (the~'Grantee"), thefolJowing. described land in County of
Hennepin and State of Minnesota, to-wit:
See Exhibit 1 Attached
WHEREAS, said Deed contained certain covenants and restrictions, the breach of which by
'-Grantee, its successors and assigns, would resultin a forfeiture andright of re-entry by Grantor, its
successors and assigns, said covenants and restrictions being set forth in said Deed; and
WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in
a manner deemed sufficient by the Grantor to permit the execution and recording ofthis certification;
NOW, THEREFORE, this is to certify that all building construction and other physical
improvements specified to be done .and made by the Grantee have been completed and the above
covenants and conditions in said Deed have been performed by the Grantee therein and that the
provisions for forfeiture of title and right to re~entry for breach of condition subsequent by the
Grantor therein is hereby released absolutely and forever insofar is it applies to the land described
herein, and the County Recorder or the Registrar of Titles in and for the County of Hennepin and
State of Minnesota is hereby authorized to accept for recording and to record this instrument, and the
filing of this instrument shall be a conclusive determination of the satisfactory termination of the
covenants and conditions ofthe contract referred to in said Deed, the breach of which would resuft in
a forfeiture and right of re-entry.
D-l
Dated:
,200_
NEW HOPE ECONOMIC DEVELOPMENT
AUTHORITY
By
Its President
By
Its Executive Director
STATE OF MINNESOTA )
) S5
COUNTY OF HENNEPIN )
On this _ day of , 20_ before me, a notary public within and for
Hennepin County, personally appeared and
to me personally known who by me duly sworn, did say that they are the President and Executive
Director, respectively, of the New Hope Economic Development Authority, a public body corporate
and politic under the laws of Minnesota, and acknowledged the foregoing instrument on behalf of
said Authority.
Notary Public
D-2
EXHIBITl
LEGAL DESCRIPTION. OF REDEVELOPMENT PROPER TV
D-3
,,"
SCHEDULE E
SITE PLAN
E-1
SCHEDULE >F
PUBLIC IMPROVEMENTS
· Building demolition and removal of demolition debris, basements and driveways
. Site clearance and rough grading
. Sanitary sewer to the edge of the Redevelopment Property
. Water mains and laterals to the edge of the Redevelopment Property
. Environmental remediation
· Vacation oftheportion of Sumter Avenue North within the Redevelopment Property and
any other public Fights of way that would interfere with the Redevelopment Project
F-l
SCHEDULE G
SITE IMPROVEMENTS
· Utility relocation within the Redevelopment Property
· Storm sewers and storm water system elements (ponds, pipes and infiltration systems)
· Any public or private streets within the Redeyelopment Property, including curb and ,
gutter, in accordance with City specifications*
· Landscaping according to City-approved landscape plans
· Trails and other pedestrian improvements pursuant to City.,approved site plans
· Grading and import/export of soil in accordance with City-approved grading plans
· Retaining walls and fences, if needed
· Streetscape and street lighting in accordance with City-approved plans
*
The respective condominium and townhome association(s) shall have maintenance responsibility
for the drives (including upkeep, street sweeping and snowplowing).
0-1
... SCHEDULE H
DESCRIPTION OF MINIMUM IMPROVEMENTS
Heritage Condominiums:
Heritage Condominiums will range in size from 1,276 to 1,671sq. ft. and will contain a
mixture of three one-level and two-"level designs.
Carriage Townhomes:
Carriage Townhomes are a traditional style row townhome with a rear entry, two-car tuck-
under garage and a lookout basement. ". The townhomes will contain a mixture of three
different models ranging in size from 1,S95 to 1,947 sq. ft. Nine different brick and siding
front elevations will also be intermixed.
The Redeveloper shall construct. approximately 170 residential units conslstmg of Heritage
Condominiums and Carriage Townhomes as shown on the Site Plan. The exact number of units will
be determined upon completion of a storm water analysis and survey of the Redevelopment Property.
. Approximately 1/3 of the units will be Heritage Condominiums with a base sales price of
approximately $149,000 per unit, exclusive of upgrades.
Approximately 2/3 ofthe units will be Carriage Townhomes with abase sales price ofapproximately
$169,000 per unit, exclusive of upgrades. The Redeveloper shall use its best efforts to causethe
average unit sales price to not be less than $200,000, including upgrades.
The quality of the Minimum Improvements shall be comparable to or better than that currently being
constructed by the Redeveloper at its "Village at Circle Pines" development in Circle Pines,
Minnesota.
B-1
SCHEDULE I
DESCRIPTION OF PRODUCTS AND MATERIALS
(Attach Ryland's spec skeets)
I-I
SCHEDULE J
PHASING OF CONVEYANCE OETRACTS OF REDEVELOPMENT PROPERTY
TRACT I (to be conveyed to Redeveloper by April 20,2004):
Street Address PI]\,
5518 Winnetka Ave N ...................................................................... 05-118-21-33-0017
5524 Winnetka Ave N ...................................................................... 05-118-21-33-0002
5532 Winnetka Ave N ...................................................................... 05-118-21-33-0018
5406 Winnetka Ave N ...................................................................... 05-118-21-33-0008
5410 Winnetka Ave N ...................................................................... 05-118-21-33-0010
5412 Winnetka Ave N ...................................................................... 05-118-21-33-0009
5420 Winnetka Ave N ....................................................................... 05-118-21-33-0011
- Winnetka Ave N (unassigned - rear of 5420) .......................... 05-118-21-33-0012
5422 Winnetka Ave N ...................................................................... 05-118-21-33-0013
TRACTU (to be conveyed to Redeveloper by June 1,2004 if practicable, but no later than July 1,2004)-
At the Authority's election, all of the parcels listed as Q) below, or all of the parcels listed as G> below:
Street Address PIN
Q) 5340 Winnetka Ave N ...................................................................... 08-118-21-22-0001
5400 Winnetka Ave N ...................................................................... 05-118-21-33-0005
5434 Winnetka Ave N ...................................................................... 05-118-21-33-0014
5440 Winnetka Ave N ...................................................................... 05-118-21-33-0015
5446 Winnetka Ave N ...................................................................... 05-118-21-33-0016
5500 Winnetka Ave N .......................:.............................................. 05-.118-21-33-0003
5506 Winnetka Ave N ................l..................................................... 05-118-21-33-0004
5512 Winnetka Ave N ...................................................................... 05-118-21-33-0006
or
G> 7615 Bass Lake Road....................................................................... 05-118-21-33-0028
7605 Bass Lake Road....................................................................... 05-118-21-33-0088
7609 Bass Lake Road....................................................................... 05-118-21-33-0089
7643 Bass Lake Road....................................................................... 05-118-21-33-0023
7601 Bass Lake Road....................................................................... 05-118-21-33-0091
7603 Bass Lake Road....................................................................... 05-118-21-33-0087
7621 Bas~ Lake Road....................................................................... 05-118-21-33-0027
5520 Sumter Ave N .......................................................................... 05-118-21-33-0085
5530 Sumter Ave N .......................................................................... 05-118-21-33-0029
5538 Sumter Ave N .......................................................................... 05-118-21-33-0024
5546 SumterAve N .......................................................................... 05-118-21-33-0025
5559 Sumter Ave N .......................................................................... 05-118-21-33-0082
5537 Sumter Ave N ........................................................................... 05-118-21-33-0022
5531 Sumter A ve N .......................................................................... 05-118-21-33-0026
Bass Lake Road (unassigned - strip between
7801 Bass Lake Rd & 5559 Sumter AveN)........................... 05-118-21-33-0081
Bass Lake Road (unassigned -strip between
7801 Bass Lake Rd & 5537 Sumter Ave N)........................... 05-118-21-33-0083
The portion of Sumter Ave N within the Redevelopment
Property, to be vacated......................................;...~................
J-l
TRACT III (to be conveyed to Redeveloper by Sept. 1, 2004) ~ All ofthe parcels listed as Q) or <l> above
that were not conveyed as Tract n.
The Authority shall convey all of the following parcels with Tract n ifit is able to do so but otherwise with
Tract ill:
Street Address
PIN
5540 Winnetka Ave N ...................................................................;.. 05-118-21-33-0007
5550 Winnetka Ave N...................................................................... 05-118-21-33-0019
7801 Bass Lake Road........;........................................".................... 05-118-21-33-0021
7809 Bass Lake Road ....................................................................... 05-118-21-33-0020
J~2
SCHEDULE K
REDEVELOPER NOTE
US $
,2004
For value received, the undersigned (the "Borrower") promises to pay to the order of the New
Hope Economic Development Authority (the "Holder") the principal sum of
Dollars ($ .00), in quarterly installments (each being a "Scheduled Payment") commencing
September 1,2004 to and including December 1,2005, the final maturity of this Note (each being a
"Payment Date") as set forth below. This Note shall bear no interest.
1. The Borrower may prepay the principal amount outstanding at any time.
2. Each payment on this Note is payable in any coin or currency ofthe United States of
America which on the date of such payment is legal tender for public and private debts and shall be
made by wire transfer in accordance with instructions to be furnished by the Holder, or by such other
method as may be mutually acceptable to the Holder and the Borrower.
Date.
3. The Borrower shall make the Scheduled Payments set forth below on each Payment
a. On September 1, 2004, the Borrower shall make a principal payment equal to
$12,500 times the number of residential units sold on or before such date. On each of December 1,
2004, March 1, 2005 and June 1, 2005, the Borrower shall make a principal payment equal to
$12,500 times the number of residential units sold during the three months ending on such date.
The remaining principal balance shall be due on December 1, 2005.
b. The Scheduled Payment on any Payment Date shall be increased if necessary
so that the total principal amount which wiHhave been paid as of such Payment Date, including such
Scheduled Payment, shall not be less than the amount set forth below for such Payment Date:
Date of Closing on Tract IT ...................$
Date of Closing on Tract ill ....................
December 1, 2004 ..............~....................
March 1,2005.........................................
June 1,2005............................................
September 1,2005 ...................;..............
- December 1,2005...................................
(10%)
(20%)
(36%)
(52%)
(68%)
(84%)
(100%)
4. If the Authority conveys both Tract IT.and Tract ill to the Redeveloper on or before
July 1,2004, the due date for each of the last five (5)payments above shall be accelerated to the 1 st
K-l
"""""" -
~~""
day of the month which is three months prior to the month of the original due date and the final
maturity of the Note shall be September 1,2005.
5. This Note shall be the joint and several obligation of all makers, sureties, guarantors
and endorsers, and shall be binding upon them and their successors and assigns.
6. Any notice from Borrower or Holder to the other shall be given by mailing such
notice by certified mail addressed to such Party at the following address for such Party, orto such
other address as such Party may designate by notice to the other:
If to Borrower: The Ryland Group, Inc.
7600 Executive Dr
Eden Prairie, MN 55344
Attn: Chris Enger, Land Resources Manager
If to Holder: New Hope Economic DevelopmentAuthority
4401 Xylon A v N
New Hope, MN 55428
Attn: Daniel J. Donahue, City Manager
7. If suit is brought to collect on this Note, the Holder shall be entitled to collect all costs
.and expenses relating thereto, including, but not limited to, reasonable attorneys' fees.
8. Upon any default by Borrower hereunder, all amounts due hereunder shall, at holder's
option, become immediately due and payable.
9. Borrower hereby waives presentment,. demand for payment, and notice of non-
payment or protest.
THE RYLAND GROUP, INC.
K-2
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PROJECT NO. 00-13
Bulletin #8
PROJECT BULLETIN
East Winnetka Redevelopment Area
December 9, 2003
East Winnetka Update
New Hope city staff and consultants have been continuing to work with representatives of Ryland Homes~o
refine the firm's proposal for redevelopment of the 16-acre, liLli-shaped East .Winnetka area. The area, which
is located along the southeast quadrant of the. Bass Lake Road and Winnetka Avenue intersection, was one
of the focus areas of the Livable Communities Task Force study that concluded in November 2002.
The most recent version ofthe Ryland proposal callsfor 165 to 1850wner-occupied units including a mixture
of its heritage condominiums and carriage townhomes. products.' Illustrations of these two housing units are.
featured below. The projected sale price ofthe new.homes would range from about $155,000 to $275,000.
The proposal features the less dense housing type next to the nearby existing single-family homes and an
internal roadway system with limited access points to Bass Lake Road and Winnetka Avenue.
~
~~\ii
..-~~
.J ....."':1'
Next Steps
The city expects to complete a development agreement with Ryland in January. Thecitysigned.apreliminary
term sheet in August with Ryland that established a. proposed sale price for the property and spelled out
which party would be responsible for the various components of the redevelopment project.
A preliminary land survey of the site' has been completed and storm water analysis should be completed by
the end of the year. The final site plan, including the precise number of units, will be contingent on the
ponding needs identified in the storm water analysis. If the project continues on schedule, Ryland has
indicated that theywould like to break ground in May 2004 and build out the development within
approximately 18 to 24 months. The city is continuing to purchase properties on a voluntary basis; however,
in order to acquire the remaining properties, other action may be taken in the near future, likely in early 2004.
In October,the City Council visited a Ryland development in Circle Pines that contains the same type of
products as the proposed development and was very impressed with the quality of the product. Residents are
encouraged to visit the development as well (for more information, visit Ryland's website at
www.ryland.com/home_search and do a "Quick Search" for Circle Pines). Neighborhood meetings will be
held in the coming months as the project progresses. We invite all interested parties to attend the meetings
to get information and ask questions of staff and consultants.
Other livable Communities Study Areas
The proposed housing development at East Winnetka has generated interest fr,?m CVS,. a major national
drugstor(ilcompany, on the commercial corner in th(il southwest quadrant of the mtersecttonof Bass. Lake
Road and Winnetka, an area recommended by the Livable. Communities Task . force.
Bear Creek Capital, CVS's representative, with the city's cooperation, has completed appraisals for the four
properties included in the proposed development area and iscurrently negotiating for the purchase of those'
properties. Bear CreekCapitalhC!s.~ubmitteqa byildil1g,eI7vatioplt)atdepicts what the pr?posed sto~e .,
might look like and is working with city sta,ff tod~yelo~aslte plan thatwould successfully rntegratewlth a
possible second phase of development that could wrap. around the comer to the west.
The Frank's Nursery site at 5620 Winnetka Avenue is another area targeted by the task force. Frank's will
be relocating to the former Lyndale Garden Center within the new few months. The preferred developer,
Master Engineering, has an option to purchase the Frank'ssitf3 and has bf3gunworkingwith city staff to
refine plans for a 45-unitowner-occupied town housr dev~18pment. A pre-pevelopment grant has been
received from the Metropolitan Council and wiHbe used to cover city staff and consultant costs.
livable Communities BackQround
In' September 2001, the Livable Communities Task Force first mettolearn
about the grant and the goals . of the study. The task force received
information about the Livable Communities . Grant, what other cities have
done as the result of sirnilarstudies,the background of the project, and
maps of the study area and the city. The study concluded in November
2002.
58th Avenue
Cll
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Cll
~ 1
Cll 55th Avenue
c
8
CD
Cll
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j The task force also obtained in-dept~ informCitionregarcjing "smart growth"
g principles, visionirlg9Pportunitie~,demogfFiphic, housing, transportation,
:~ crime stat,isticsapdf3xplanations for the city tax structure, , park
;.3 information,.cmd principles of land use planning,
With this information,. the task force. created .a.numb~rof concepf pfans. for the fourtarget.areas-
Hosterman, Bass Lake Road Apartments, East Wil'll'letka, al)dFrank's Nursery apdVVincrest Apartments-
using a mix of single and multi7"family housing, commrrcial bu~iness, and commurl!ty gath'eringand green
space, as well as rehabilitation of existing structures (see map).
.. ....s:;P;.~?!I!~?..
Related News
In late June, the City Council extended the temporary prohibition of all major construction or development
within the four redevelopment areas identified by the Livable Communities Task Force, including the East
Winnetka area, until July 31,2004. The building moratorium was initiallyaooptedin August 2002.
The Minnesota House and Senate passed special legislation during the 2003 session which made it
possible for the city to establish a Tax Increment Finanqing (TIF)district for EastWinnetka and the other
Livable Communities redevelopment areas. Hennepin County approved the city's plans to establish a new
TIF district in November and the City CounciLformally established the TIFdistrict at its December 8,,2003
meeting.
City Contacts
If you have.questions_or comments about the project, please contact Amy Baldwin, community
development i~tern, at 763-531-5196 or abaldwin@ci.new-hope.mn.us, or Kirk McDonald, community
development dIrector, at 763-531-5119 or kmcdonald@ci.new.hope.mn;us.
T~ecity appreciates the cooperation of aU residents and businesses in the area that may be impacted by
thIS redevelopment project. Additional bulletins wil/continue to be sent to you periodically as the project
proceeds.
City of New Hope, 4401 Xylon Avenue North, New Hope, MN 55428
www.ci.rew-hope.mn.us
..,....., ,!l"'fI"'Ih."
EDA
REQUEST FOR A,CTION
Originating Department
Community Development
Approved for Agenda
Agenda Section
By: Kirk McDonald, Director of CD
& Ken Doresky, CD Specialist
(')'
By: ))j
1-26-04
ARESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN PROPERTY WITHIN THE CITY OF NEW
HOPE FORTHE PURPOSE OF REDEVELOPMENT (IMPROVEMENT PROJECT FILE 724)
REQUESTED ACTION
Staff requests EDA consider of the attached resolution prepared by the city attorney authorizing the acquisition
of certain property within the City of New Hope for the purpose of redevelopment.
Per the attached city attorney correspondence, "The attached Resolution includes condemnation for all. 14
properties we currently do not own (in the east WinnetkC) redevelopment area). The addresses of these
properties are listed on Exhibit Aof the enclosed Resolution. Also, Exhibit A lists the title defect gapswe will
acquire by condemnation. These gaps result from the use of legal descriptions that were either inaccurate or
inconsistent. Basically, we are talking about "de minimis" property amounting to two (2) feet or less along the
property lines ()f various prop~rties we now already own. The gaps don't mean anything to anyone except titl.e
examiners. We need to clean up the gaps so we can deliver marketable title to the developer over the entire
parcel of the East Winnetka Development Area." Also, the Resolution outlines the major objectives in
establishing the project area and plan.
POLICY/PAST PRACTICE
City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within
the city. The City Council has been addressing the . residential portion of this goal through the city's many
housing activities, inclUding acquiring property in areas designated for redevelopment in the Comprehensive
Plan.
BACKGROUND
,Over the past 8 years the City has been acquiring property in the subject area in anticipation of future
redevelopment. 7621 Bass Lake Road was .the first property that the city acquired in the area. The property
was acquired in October 1995.
In 1998, the Council passed a resolution approving the city of New Hope Comprehensive Plan Update. The
Comprehensive Plan targeted several areas in the city for redevelopment. Recommendations for the subject
area include the acquisition and redevelopment of sites located along the south side of Bass Lake Road, in the
Bass Lake Road extension area and alon the east side of Winnetka Ave. N. between 5340 Winnetka Ave.
TO:
~
2DA
SECOND BY
MOTION BY
~ 0'-/ - 03
1:\RFA\PLANNING\Housin \EastWinnejkq Redevelopment\Q -Acquisition.doc
Request for Action
Page 2
1-26-04
and Bass Lake Road.
In 2000, the city received a Metropolitan Council Livable Communities Grant to study r~c1~v~lopmrant
opportunities in the roughly.quarter-mile area encircling the intersection. of Winnetka. Ave.N. and Bass Lake
Road. In 2001 and 2002,.the Livable Communities TaskForce studied redevelopment opportunities within the
designated area. In 2002, the Council accepted the task force study. In February 2003, the Council selected
developers for each study area site based on proposals, except the west Winnetka site; Staff cgntilJl.les
coordinate, with develOPrarsin th~Liyat)lec:;gl'11munIties Area.
As directed by the Coundlat the November 3, 2003, Work Session,ptaff has.been coordinating with the
remaining owners in the subject area to complete the acquisition of property. Also, staff has coordinated with
Evergreen Land Services, the city's relocation consultant for payment of relocation benefits to all remaining
sellers. '
At the January 20 Council Work Session, staff presented a detailed review of acquisition status in the subject
area. Below, please find a list ofthe remaining properties (included in theresolutidn) and current status:
......
East Winnetka Redevelopment Acquisition Status ."
...
.
Residential Status
. 5400 Winnetka Avenue North Purchase Agreement
. 5434 Winnetka Avenue North Negotiation
. 5440 Winnetka Avenue North Purchase Agreement
. 5446 Winnetka Avenue North Negotiation
. 5512 Winnetka Avenue North Negotiation
. 5540 Winnetka Avenue North Limited Contact
. 5531 Sumter Avenue North Negotiation
.
. 5537 Sumter Avenue North Limited Contact
" 5538 Sumter Avenue North Negotiation
'. . 7605 Bass lake Road Purchase Agreement
. 7.609 Bass Lake Road Negotiation
. 7643 Bass lake Road Purchase Agreement
Commercial
. 7809 Bass lake Road Limited Contact
. 7615 Bass lake Road Negotiation
Even though the resolution includes all remaining properties that the city has not yet closed on to insure
delivery of the property to the developer on a timely basis, purchase agreements and/or negotiation is
underway on a number of the remaining properties. Eminent domain will only be necessary for properties
where purchase agreements are not negotiated. At this point, staff is negotiating purchase agreements with
most of the property owners.
Staff recommends approval of the resolution.
FUNDING
The subject property is located in an area where TIF funds can be expended.., TIF funds would be used for
property acquisition, relocation and associated holding costs. During the 2003 State Legislative Special
Session, the city's TIF special legislation was passed. In December 2003, the districtwas approved by the City
Council.
ATTACHMENTS
· Resolution
· City Attorney Correspondence, 1 ~21-04 & Location. Map/City Ownership. Map
DOUGLAS J, DEBNER2
GORDON L, JENSEN!
GLEN A. NORTON
STEVEN A, SONDRALL
STACY A. WOODS
OF COUNSEL
LORENS Q. BRYNESTAD
'Real Property Law
Specialist Certified By
TIle Minnesota State
Bar Association
2 Admitted in Iowa
JENSEN &SONDRALL, P.A.
Attorneys At Law
8525 EDINBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1968
TELEPHONE (763) 424-8811 . TELEFAX (763) 493-5193
e-mail law@jensen-sondralLcom
January 21, 2004
VIA E-MAIL TOkmcdonaldtmci.new-hope.mn.us.
AND BY REGULAR U.S. MAIL
Kirk McDonald
Community Development Director
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re: Proposed Resolution Authorizing Condemnation. of Private Property for East
Winne~l\.a/Ryland Development
Our FileNo. 99.11287
Dear Kirk:
Please find enclosed for consideration at the January 26, 2004 Council meeting a proposed EDA
Resolution authorizing condemnation to acquire the remaining private properties in the East
Winnetka Development Area forthe Ryland Development.
The attached Resolution. includes condemnation for all 14 properties we currently do not own. The
addresses of these properties are listed on Exhibit A of the enclosed Resolution. Also, ExhibitA
lists the title defect gaps we will acquire by condemnation. These gaps result from the use ofIegal
descriptions that were either inaccurate or inconsistent. Basically, we are talking about "de
minimis" property amounting to two (2). feet or less along the property lines of various prbperties
we now already own. The gaps don't mean anything to anyone except title examiners. We need to
clean up the gaps so we can deliver marketable title to the developer over the entire parcel. of the
East Winnetka Development Area.
Please contact me if you have any questions or comments regarding the attached Resolution or the
information in this letter. .
Very truly yours,
Steven A.. Sondrall, City Attorney,
City of New Hope
JENSEN & SONDRALL, P.A.
sas@jensen-sondrall.com
After HOUTS Extension#147
Attachment (1)
P:lAttorneylSAS\2 City of New FIope\99"1I287\CNHI 1287-00I-Kirk Ltr.doc
.
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4. 5420 Winnetka Ave. N.
5. 5422 Winnetka Ave. N.
6. 5500 Winnetka Ave. N.
7. 5506 Winnetka Ave. N.
8. 5518 Winnetka Ave. N.
9. 5524 Winnetka Ave. N.
10. 5532 Winnetka Ave. N.
11.5550 Winnetka Ave. N.
12. 5520 Sumter Ave. N.
13. 5530 Sumter Ave. N.
14.5546 Sumter Ave. N.
15. 5559 Sumter Ave. N.
16. 7601 Bass Lake Road Ext.
17. 7603 Bass Lake Road Ext.
18. 7621 Bass Lake Road Ext.
19. 7801 Bass Lake ~oad
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EDA RESOLUTION NO, 2004 - -&
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF HENNEPIN, STATE OF MINNESOTA
A RESOLUTION AUTHORIZING THE ACQUISITION OF
CERTAIN PROPERTY WITHIN THE CITY OF NEW HOPE
FOR THE PURPOSE OF REDEVELOPMENT
(Winnetka Avenue East Development Area)
BE IT RESOLVED bytl1e Economic Development Authority in and for the City of New
Hope (the "Authority")as follows:
WHEREAS, the Authority is a public body corporate and politic authorized under Minn.
Stat.s469.090 et seq.;and
WHEREAS, the Authority is authorized to exercisethe right of Eminent Domain under the
aforementioned statute and under Minn. Stat. Chapter 117; and
WHEREAS, in furtherance of the Authority's obj ectives, there has been established pursuant
to Authority Resolution No. 02-05, adopted September 9, 2002, aRestated Redevelopment Plan (the
''Project Plan") for Redevelopment Project No.1 (the ''Project Area") in the City of New Hope,
Minnesota, (the "City") to encourage and provide maximum opportunity for private development and
redevelopment of certain property located within the City which is not now utilized in its highest and
best use; and
WHEREAS, the major objectives in establishing the Project Area and adopting the Project
Plan are to:
1. Promote and secure the prompt development or redevelopment of certain property in
the Project Area, which property is not now in productive use or in its highest and
best use, in a manner consistent with the City's comprehensive plan and with a
minimum adverse impact on the . environment and thereby promote and secure the
development of other land in the City.
2. Promote and secure additional employrnent opportunities within the Project Area and
the City for residents of the City and surrounding area, thereby improving living
standards, reducing unemployment and the loss of skilled and unskilled labor and
. other human resources in the City.
3. Secure the increased valuation of property subject to taxation by the City, county,
school district and other taxing jurisdictions in order to better enable such entities to
pay for governmental services and programs required to be provided by them.
4. Provide for the financing and construction of public: improvements in and adjacent to
the Project Area necessary for the orderly and beneficial development or
redevelopment of the.Ptoject Area and adjacent areas ofthe City.
5. Promote the concentration ofne~ desirable resid~ntial,co1111TIe~cial, .office and other
appropti~te (.ieveloPll1entorredevelopment intheProjecti\teaso as to mail1tainthe
ar~ajlJ. ~l11a,nnercol11patible with its accessibility and prominence in the City.
6, Encourage local. busil1essexpansion, improvemellt,development or redevelopment
whenever possible.
7. Create a desirable arid unique character within the Project Area through quality land
use altematives.and design quality in new and remodeled buildings.
8. Encourage and provide maximum opportunity for private development or
redevelopment of existing areas and structures which are compatible with the Project
Plan.
9. Create viable environments which would upgrade and maintain housing stock,
maintain housing health and. safety. quality standards and maintain and strengthen
individual neighborhoods.
10. . Stimulate private activity and investment to stabilize and balance the City's housing
. supply.
11. Eliminate code violations and nUisance conditions that adversely affect
neighborhoods.
12. Revitalize property to create a safe, attractive, comfortable, convenient and efficient
area for residential use.
.13. Recreate and reinforce a sense of residential place and security which creates
neighborhood cohesiveness through City investment in neighborhood infrastructure
and public improvements, including landscaping, park improvements, local street
modifications to reduce traffic impacts, street repaving, curb and gutter replacement,
and streetlight updating.
14. Encourage inull development and redevelopment that is compatible in use and scale
withsurrouncling neighborhoods.
15. Rehabilitate the existing. housing stock and preserve existing residential
neighborhoods wherever possible.
16. Demolish and reconstruct, where necessary, aging residential buildings to preserve
neighborhoods.
17. Remove substandard structures.
2
WHEREAS, also in furtherance of the Authority's objectives, there has been created and
established Tax Increment Financing District No. 03-1 (Special Law) (hereafter "The'District")
pursuant to Authority Resolution No. 03-14, adopted December 8, 2003. Authority Resolution No.
03-14 also modified. the Restated Redevelopment Plan and Tax Increment Financing Plans for
RedevelopmentProjectNo. 1 and Tax Increment Financing District Nos. 80;..2, 81-1, 82-1, 85-1, 85-
2, 86-1 and 02-1. It also adopted a Tax Increment Financing Plan relating to Tax Increment
Financing District No. 03-1 (Special Law); and
WHEREAS, the major objectives promoted by The District and the action taken by
Authority Resolution No. 03-14 is the continuance of the aforementionedobjectiyes, but specifically
including the constnlctionofapproximately 170 units of residential housing in The District known as
the Winnetka Avenue East Area proposed to include 120 carriage homes and 50 condominiums in
two phases to lJecompleted in 2004 and 2005, which is expected to increase the City's tax base by
approximately 31.8 million dollars; and
WHEREAS, in addition to the increased tax base in The District, the proposed housing for
the Winnetka Avenue East Area will proVide the City of New Hope and its residents and citizens
with a much needed variety of housing choices while still maintaining the single-family character of
The District. It will.further promote redevelopment of underutilized land, facjlitate the more
efficient use ofthe City's land and eliminate substandard strUctures that previously or currently exist
in The District; and
WHEREAS, since 1995, the City and the Authority have been acquiring property on a
voluntary basis to assist in the type of housing redevelopment now contemplated for. the East
Winnetka Avenue Area and as now recommended by the New Hope Livable CommullitiesTask
Force; and
WHEREAS, it appears thatin order to accomplish the objectives and purposes set out in the
Restated Redevelopment Plan and Tax Increment Financing Plans for Redevelopment Project No.1,
TaX Increment Financing District Nos. 80-2,81-1,82-1,85-1,85-2,86-1, 02-1 and 03-1, including
the redevelopment and construction of the aforedescqbed 170 residential housing units within the
East Winnetka Avenue Area, it will be necessary to. acquire fee title to the properties described on
Exhibit A attached hereto and incorporated herein by this reference (the "Properties"); and
WHEREAS, in order to resolve and clear various title defects described as ~~gaps" created by
errors and/or inconsistencies in legal descriptions used to convey certain properties within the Project
Area and The District over the course of years, it will also be necessary to acquire fee title to the
various "gaps" on Properties described on Exhibit A as well; and
WHEREAS, the Authority has been advised that said Properties will not be made available
for redevelopment in the manner thatwou1d allow the Authority to undertake the Project Plan and
meet the objectives and purposes of the Project Plan for the Project Area, The District and for the
City unless fee title to the Properties is acquired by use of Eminent Domain; and
3
WHEREAS, the Authority believes that the development and redevelopment ofthe Project
Area and The District and th,e fWfillmen~ofthyJ:>rojectPlanC:J1'e in the vital and best interests of the
Authority and the)lealth, safety,lllorals and welfary of there~idynts of the City,audin accord with
the public po/Posesand provisions. of applicable federal, .... state .and . lpqal laws under which this
development and redevelopment. are being undertflkenandassisted,
NOW,THE~FOlU!},~~lt'll.E$()LYE;t?,-thatjnOl;dertQ undertake the Project Plan. and
provide for tlie development and redeveloPlll~ntpf.thy]?ropertiysin al11mmerthatwill meet
the objectives and purposes of the ProjectPlan for the Project Area and The District, the
Authority procyedt9'1:8g11ir~theproperties and, all interests therein under its power of
Eminent Domaip;. ~~tB~tt4eat~orne~s{orth~. Allthority beinstI1lctedandqirectedto file
the ..necessaIf'..petit~.()~.o~..petitio~s ..thyr~to,.and to..prqsecute ..su~h action or . actions to
succe~sful conc~~si9ggrll1;ltilsl1Ch are ab(1114(>n~d;. distl1i~se<iortern:J,inated by the Authority
Of thec?tIrt;~n~ ~hat~#<l ~ftitiollsinclu4y ,anynepess~actions to ~qllire,s~d Properties
under the "Quick.Take" provisions o'fMit1nesota law"set forth in Minn. Stat~&469.10 1 and
Minn. Stat. ~ 117.042; and that the attorneys for the Authority, the President of the Authority
aI1d theExeputi~eDi:ept9r DftheAuthoritYdp all thin~sp.ecessaryapdcon.vepi~nt tobe done
i~. thecommynqeme~"lt,p~o~ecutioll and~ucces~ful termination of such Emjnent Domain
proceedings. '
<
BE IT FtJR'fHER ImSOL VED, that it is hereby found and declared that the acquisition of
the Properties described on Exhibit A attached hereto and all interests therein by the
Authority under its power of Eminent Domain is necessary to develop and redevelop their
underdeveloped areas under the Project Plan within the Project Area and The District.
Adopted by the Economic Development Authority in and for the City of New Hope this 26th
day of January, 2004.
yf~.
W. Peter Enck
Its President
P;\AtlorneyICnh Resolutions1CNH99.11281-00 I-EDA Private Property Condenmation Resolution.doc
4
,~'
EXHIBIT A
Descriotion of Prooerties
L. and located in Hennepin County, Minnesota and described as follows:
.. . - , , , ' .
Common Address PIN
5400 Winnetka Avenue North 05-118-21-33-
0005
Common Address PIN
5434 Winnetka Avenue North 05--118-21-33-
0014
Common Address
5440 Winnetka A venue North
PIN
05-118-21..33-
0015
. Common Address PIN
5446 Winnetka Avenue North 05-118-21-33-
0016
Common Address PIN
5512 Winnetka Avenue North 05-118-21-33-
0006
COllUIlon Address PIN
5540 Winnetka Avenue North 05-118-21-33~
0007
PARCEL NO. 1
Le al Descri tion
The South 100 feet of Lot 38, Auditor's Subdivision Number 226, Hennepin
County, Minnesota, according to the plat thereof on file and of record in the
office of the Registrar of Deeds, in and for Hennepin County, Minnesota,
excepting therefrom:
The West 7.0 feet of the following described tract:
The South 100 feet of Lot 38, Auditor's Subdivision Number 226,
Henne in Conn , Minnesota, exc t road.
PARCEL NO.2
Le al Descri tion
The North Seventy (70) feet of the South Four Hundred Fifty (450). feet,
except road, according to the recorded platthere()f, and situate in Hennepin
County, Minnesota, Lot Thirty-Eight (38), Auditor's Subdivision No. Two
HundredTwen -Six 226 . Abstract Pro e
PARCEL NO. NO.3
Le al Descri tion
North 70 feet of South 520 feet of Lot38, Auditor's Subdivision Number
226, according to the recorded plat thereof, and. situate in Hennepin County,
MInnesota. Abstract Pro e
PARCEL NO.4
Le aI Descri tion
The North 70 feet of the ~outh590 feet ofLot38, Auditor's Subdivision No.
226, according to the recorded plat thereof, and situate in Hennepin County;
Minnesota. Abstract Pro e
.PARCEL NO.5
Le al Descri tion
That part of the West 10 acres of the Sout:h,west Quarter of the Southwest
Quarter of Section 5, Township 118, Range 21, West of the. Fifth Meridian
lYing South of the North 513.80 feet front andrear and North of the South
760.02 feet front and rear, being a part of Lot 38, Auditor's Subdivision
Number 226, Henn in Coun , Minnesota. . Abstract Pro e
PARCEL NO.6
Le al Descri tion
That part of the West 10 acres of the Southwest Quarter of the Southwest
Quarter of Section 5, Township 118, North Range 21, West of the 5th
Principal Meridian, Hennepin County, Minnesota, described as follows:
Commencing at . a point on.. the West '.line. of said West 10 acres of the
Southwest Quarter of the Southwest Quarter, distant 1100 feet North from the
Southwest comer thereof; thence North along said West line, 90 feet; thence
East parallel with the South 1i.'1ethereof, 160 feet; thence South parallel with
the West line thereof, 90 feet; thence West parallel with the South line
thereof, 160 feet to the point of beginning, now being a part of Lot 38,
Auditor's Subdivision Number 226, Hennepin County, Minnesota.
Abstract Pro e
PARCEL NO.7
5
Common Address
7615 Bass Lake Road
Common Address
7605 Bass Lake Road
CommonAddress
7609 Bass Lake Road
Common Address
7643 Bass Lake Road
Common Address
5538 Sumter Avenue North
Common Address
5537 Sumter Avenue North
PIN
05-118-21-33-
0028
PIN
05-118-2J,.33,-
0088
PIN
05-118-21~33.-
0089
PIN
05-118-21-33-
0023
PIN
05-118-21-33-
0024
PIN
05-118-21-33-
0022
Le al Descrition
TractsAandB, Regist~red Land SlfrVeyNo.848,Files of Registrar of Titles,
County of Hennepin. Being registered land as is evidenced by Certificate of
Title No. 406625. .
PARCEL NO.9
Le al Descri tion
That part of Lot 39, Auditor's Subdivision Number 226, Hennepin County,
Mip~w~ota, described as follows: Commencing at a point 41 0 feet East of the
No~",est comer thereof; thence East along the North line a distance of 90
fe~ti.tl1rnce South parallel wit4 the West line of said lot a distance of 235.2
feet;then~e West parallel with :North line of said lot a distance of 90 feet,
the~ce:North parallel with t4e West line of said lot 235.2 feet to the point of
beg~g. Files of Registrar of Titles, County of Hennepin, State of
Minptsota. Being registered land as is evidenced by Certificate of Title No.
244093-
PARCEL NO. 11
Le al Descri tion
Tha~paJ;iofLot 39,Auditor's Subdivision No.226, Hennepin County, Minn.
d~~cribedas follows: Commencing at the Northwest comer of said Lot 39,
thenpe..East along the North line of said Lot, 200 feet; thence Soutll and
Paraf!rl,with the West line. of said .Lot 100 feet, which point is the point of
begitmingof the tract to be desc!ibed; thepce East and parallel with the North
lip~. ?f ~aid Lot, 210 feet; thence South and parallel with the West line of said
Lpt,:109 feet; thence W est and parallel with the North line of said Lot, 210
f~e~;tl-1~p.c:e North and parallel with the West line of said Lot, 100 feet to the
P?ipt()~beginning. Files of Registrar of Titles, County of Hennepin, State of
Mim}esota. Being registered land as is evidep.ced by Certificate of Title No.
5517:26; ,
p ", GEL NO. 12
L,escri . tion
Cp i cipg at a point in the West line of Lot 39, Auditor's Subdivision No.
2+q, ennepin County, Minnesota 100 feet South of the Northwest comer
~~r .' .,fithence East parallel with North line of said Lot 39, a distance of 200
feet; tIlence South parallel with the West line of said Lot ~9, a distance ofl 00
feet; ~~pce West parallel with the North line of said Lot 39, a distance of200
feet tpt:p.e West line thereof; thep.ce North along said West line a distance of
1 OO~eet'to the point of beginning except the West 10 feet of the North 80 feet
of the above described tract:
Subject,to and together with an easement for public road purposes over the
East 30feet of the Westl200 feet of the North 200 feet of said Lot 39
extep;pill.g from the South line of the tract therein conveyed to the South line
of Bass, Lake Road as shown in Deed Document No. 257342, Files of
Registrar of Titles, County of Hennepin, State of Minnesota. Being
re 'stered land as is evidenced b Certificate of Title No. 605552.
pAACEL NO. 13
6
Common Address
5531 Sumter Avenue North
PIN
05-118-21c33~
0026
Common Address
7809 Bass Lake Road
PIN
05-118-21-33-
0020
Le aI Descri tion
That part of Lot Thirty-nine (39), Auditor's Subdivision Number 226,
Hennepin County, Minnesota, described as follows: Commencing at a point
on the West line of said Lot 39,200 feet South of the Northwest comer
thereof, which point is the point of beginning of the tract to be described;
thence continuing South along said West line 100 feet; thence East and
parallel to the North line of said Lot 39, 200 feet; thence North alld parallel
with West line of said Lot 39, 100 feet; thence West and parallel with the
North line of said Lot 39, 200 feet to the point of beginning, Files of
Registrar of Titles, County of Hennepin, State of Minnesota. Being
re 'stered land as is evidenced b Certificate of Title No. 1008531.
PARCEL NO. 14
Le al Descri tion
The West 70 feet, front and rear, of the East 140 feet, front and rear, of the
North 243.8 feet of the West 10 acres of the Southwest Quarter of the
Southwest Quarter of Section 5, Township 118, Range 21, Hennepin Cowty,
Minnesota, being part of Lot 38, Auditor's Subdivision No. 226, Hennepin
County, Minnesota, subject to rights acquired over the North 34 feet thereof
for public road, according to the recorded plat thereof, and situate in
Henn in COUll , Minnesota.
7
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda
Agenda Section
Community Development 1-26-04
EDA
Item No.
By: Kirk McDonald, Director of CD
& Ken Doresky, CD Specialist B:
I'
(f)
RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 5400 WINNETKA
AVENUE NORTH {IMPROVEMENT PROJECT FILE 760)
REQUESTED ACTION
Staff recommends EDA approval of a resolution prepared by the city attorney approving the purchase of
property located at 5440 Winnetka Avenue North for it's appraised value of $200,000, relocation estimate of
$6,550 (moving and closing costs) and an additional $5,000 requested by the. owner.. Staff expects that the
property owners will execute the purchase agreement by the time of tonight's meeting.
As directed by the Council at the November 3, 2003, Work Session, staff has coordinated with Evergreen
Land Services.. the city's relocation consultant for payment of relocation benefits to. all remaining. sellers in the
East Winnetka Livable Communities Area. The city's purchase offer will now consist of the appraised value
and a relocation payment determined by the city's relocation consultant. The relocation estimate of $6,550 for
this property is attached as Exhibit B to the purchase agreement, but will be adjusted when the property owner
moves and completes the purchase of another property (actual closing costs will be used proportionate to the
purchase price. .of the subject property), The owners. have entered into a purchase agreement for another
propertythatis the same amount as the city's offer,therefore there is no differential payment. As a result, the
property owner is requesting an additional $5,000 (see attached letter) .in addition to the appraisal and
relocation benefit. package. At the January 20, Council Work Session, the Council approved a motion
authoriZing the additional $5,000 payment due to the fact that no differential payment would be received and
because the city wanted to resolve the acquisiti()n ofthis parcel.
POLICY/PAST PRACTICE
City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within
the city. The City Council has been addressing the residential portion of this goal through the city's many
housing activities, including acquiring property in areas designated for redevelopment in the Comprehensive
Plan.
BACKGROUND
At the November 3, Council Work Session,. the Council directed staff to complete appraisals, relocation
estimates and to present offers to residents located in the east Winnetka redevelopment area. On December
MOTION BY
SECOND BY &-u-,
TO:
1:\RFA\PLANNING\Housin \5440\Q,.... 5400 Purchase A reement.doc
Req uest f.or Acti..on
Page 2
1-26-04
23, staff, the city attorney and Evergreen Land Services met with the property .owners to discuss the
acquisition process. The appraisal and relocation estimate have been completed and are attached.
Staff recommendsapprbval of the attached resolution .
FUNDING
,-hesubj~ctprbpe~rislocated ina~areaw~Elr~TIFfu~d~ can.be f?xpen87(LTIFf~l1ds ,^,ould pe .lJsed fpr
property acquisition,' relocation. and associatf?dholdill9 .costs. ..Ouring the.2003 state Legislative Speci~1
Session,. the city's TIF speciallf?gislation was passed. In .December 2003, thedistrictwasapproved by the City
Council. .
ATTACHMENTS
. Resolution
. Purchase Agreement & Relocation Data
. City Attorney Correspondence, 1-23-04 and 1-20-04
. Evergreen Land Services Correspondence, 1-15-04
. Appraisal
. Location Map/City Ownership Map
. Hennepin County Parcf?1 Data
Provided in past Council reports relating to .the.east Winnetka redevelopment area:
· Topographic Map
. Section Map
. Comprehensive Plan References - Planning District 6
CITY OF NEW IlOPE
EDARESOLUTION NO. 04 -
RESOLUTION APPROVING PURCHASE AGREEMENT
AND RELOCATION BENEFITS
5400 Winnetka Avenue North
BE IT RESOLVED, by the Economic Development Authority in and for the City of
New Hope as follows:
WHEREAS, New Hope City staff have been in contact with Dennis Allan Cline and
Carol A. Cline ("Owners"), Owners of certain real estate known as 5400 Winnetka Avenue
North (the "Property"); and
WHEREAS, appraisers hired by the New Hope EDA valued the Property at $200,000.00
as of December 9,. 2003; and
WHEREAS, the Owners are willing to sell the Property to the New HopeEDAfor the
sum of $205,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and
incorporated herein by reference; and
WHEREAS, the New Hope.. EDA herby approves the Purchase Agreement with the
understanding relocation assistance benefits will be paid to the Owners as required' by both State
and .Federallaw; and
WHEREAS, City staff have employed the service of Evergreen Land Services Company
to provide the required relocation assistance; and
WHEREAS, . Evergreen Land Services Company has prepared a relocation' analysis for
the Owners herein and has determined the estimated maximum relocation benefit payable. to
Owners is $23,325.00 (analysis attached as Exhibit B).. The final actual cost for the relocation
benefits the Owners are entitled to will be determined when the Owners actual purchase price,
closing costs and moving expenses in connection with their replacement property are determined
by Evergreen Land Services Company; and
WHEREAS, it is in the best interest of the New Hope .EDA to purchase the Property
from the Owners for the sUIllof $205,000.00, with other terms and conditions as set forth in the
Purchase Agreement and to pay the required relocation benefits.
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 purchase of the Property by the New Hope EDA from . Dennis Allan
Cline and Carol C. Cline for. the sum of $205,000.00, with other terms and
conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is
approved.
3, The maximum relocatio~ benefit estimated to be $23,325.00 is hereby approved
with the final amount to be d~terminedby Evergreen Land Services Company
after actual purchase price,movillgexpen~es and closing costs. are determined for
the Owner~replacementpropertyby Evergreen LandService~.
4. The Pre~ident, 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 cQInplete the purchase of the Property in accordance
with said Purchase Agreement.
Dated the Ith day of January, 2004.
W. Peter Enck, President
P:\Attorney\Cnh Resolutions\99.11300.001..Reso Approv P A.5400 Winnetka Avenue.dpc
2
DOUGLAS J. DEBNER2
GoRDON L. JENSEN'
GLEN A. NORTON
STEVEN A. SONDRALL
STACY A. WOODS
OF COUNSEL
LORENS Q. BRYNESTAD
JReal Property Law
Specialist Certified By
The Minnesota Stale
Bar Association
'Admitted in Iowa
JENSEN & SONn~LL,r.r\,.
Attorneys Ai Law
8525 EDINBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1968
TELEPHONE (763) 424-8811 . TELEFAX (763) 493-5193
e-mail law@jensen-sondraIl.com
January 23, 2004
VIA E-MAIL TOkdoresky~ci.new-hope,mn.us
AND BY REGULAR U.S. MAIL
Ken Doresky
Community Development Specialist
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re: EDA Resolution Approving .Purchase Agre.ement/5400Winnetka
Our File No.: 99.11300
Dear Ken:
As we discussed earlier today, please find enclosed a proposed resolution approving the 5400
Winnetka purchase agreement.with the . Clines" and the purchase agreement. I will fax to.you the
actual purchase agreement and the relocation analysis. They should be attached as exhibits A and B
to the. resolution. Sorry this is coming so late in the day.
Contact me if you have any other question or comments about this item.
Very truly yours,
Steven A. Sondrall, City Attorney,
City of New Hope
JENSEN & SONDRALL, P.A.
sas@jensen-sondrall.com
After Hours Extension #147
Enclosure(s)
cc: Valerie Leone
. P:\Attorney\SAS\2 City of New Hope\99-11300\K, Doreskyletterresolution approving pa 5400 winnetka.doc
OL/23/2004 LG:L2.FAX 763 493 GL93
JENSEN & SONDRALL. P.A.
EXHIBIT "A"
, Cl'iriCri
~.u.i.Ju
. . R 1997' R '2002) M.S.B.A. R....l Proporty I"orm No.1
Miller/Davis Co., St. paul,. MN-~Form 1300 (1994; Rev. 1996, ev. . IiJV, ',.. PURCHASE AGREEMENT.! PAc>E 1
Minneo;,M Standard RMtNNeSO~A~TANDARD RESIDENTIAL PURCHASE AG~EEMENT
@ Copyright 1998 1997 2002 by Minnesota State Bar Association. Minneapolis, Minnesota '. . .
Bj:FPREYOUUSE OR SIGN TH.IS CONTRACT, YOU SHOUL.D. CONSULT WITH A<LAWYER TO DETERMINE THAT THIS CONTRACT
AClgduATEl.YPROTECTSYOUR!.-EGAL RIGHTS. Minnewla State Bar Assoclatton disclaims any lIabilily arising o...t of the use of this form.
1 ,. PARTIES._ ThlspurChalileAgreeOlent'is made on . . ' 2004 ___._~.~ ,by and b,:t;,,,,en
2 .~___.. nenni" Allan Clinc Wld Cw:ul A rlille . ._' [marital statl,ls] ~ h)J~hl'nrl anlt:wik...._
:i oflseJlsr's addresS! .. , " '., . Ai4.nn Wi'nn~lkHA.Vl':1\11t"! Nqrtb~ New Hopet,Minn~~nt'1l55A.?R. ,I SELLER, and
4~~~.<,:'iQllflr?~'E:::"'" H.T~ :i'lMinnc~crta,mu'nicipalc~rpuWlicu. " . ._.' _, ".III'H......lC\ts [strike joint teruilnls.' if lQrloncy in common
C; Is intended) of [buyer'$ addre$$l....4~Ql Xylnn Ave."".. Nnr1:h..N~", [I"pc;., MinncscLa SS42&.~_. .._ BUYER.
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2. OFFER/ACCEPTANCE- Buyer offers to purchase and SeU..r ..gr~s to ....1/ real property l"'l;Ially described as: Scc.ana.cJu:d.Schcdulc "A".
OS-1l8.-41-33.QOQ:S.________J
[Pruperly Tax Identification Number or Tax Parcel Number
located al ~... 5400 WinnelJ<.u. Avenue North .___~ . City ot ~ _ ... New Hupe___
County of _ . Hennq>in ..____. State ofMlnnesota. Zip Code 55428._ .
3_.ACCEPTAJ\ICE DEADLINE. The acceptance date of this Purchase Agreement ,s thedete It is deUverGd by tho "'stpartysiwning to th.. othOr
party. This offer to purchase, unless acccPlod sooner, shall be void at 11:5fl A"M.,on [dste} n...20o.4. ----h-
and in ~ueh C'lent all earnest money' shall be refunded to 8:uyer.
4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN SALE. The followinc Items of personal property and fixtures owned by Sellor
..nd currently located on the real property are Included in thl!; sale {Strike orA items .not incluciedf;. garden bulbs, plants. shrubs, trees, storm
windows and inserts. storm doors. scr",ens, awnings. )Nindow shades. . blinds. curtaln-traverse-drapery rods, . attached lighting fixtures with
bulbs. plumbing fixture!;. sump pumps. water heaters.. heating systems, heating stoves. flr-eplaceJn~rts,fireplace doors and screens, buill-in
humidifiers, built-in air conditioning unil$. built-in electronio ;:Iir tilters. automatic garage door openers wiU' controls. television antennas.
water softeners. built-In dishwashers, garbaga dlspO$als, built-in trash compactors. built-In ovens and cooking 8toves, hood-fans. intercoms,
installed carpeting. work benches. security systems. and also the following property: . -'"
Upon delivery of theD_d, S..lIer shall also deliver a Warranty 6i11 of Sale for the above pereon.., property. {Cht!",k rhs box if' rhe fol/owing
pravis;on appli"$ rorMs Purchase Agre..rnemt:J [J". S..II~r $hall use M.S.B.A. Reel Property Form No. 00 (1997). Warranty Bill of Sal...
5. PRICE AND TERMS. The price for the real and personal property Included In.thls sale Is Two Humlaa1..Eil1:<=. Tlmu"and.ann Ontl no
Dollars ($ 205,000.00
). which ~uyer shall pay as follows:
000
by piI:-..a(. lCKIlDK,.lIIDDXE . state which] _ .
__.. payable to
Earnest money of $
{".,Iecl one:J
8. · ~eller, to. be '.de po.sil.eda nd h.e.ld by S e..ller (an drn a Y.b. e co .mmlngle.d. W ith.S. eller'S. Qthe. r fun.dS) pen ding closing,
Seller's lawyer. to be deposited and held in .!tIe lawyer's trust account pending closing,
Seller's broker. to be deposited or held by brOKer according to the requlremenrsof Minnesota Statutes,
O!tlcr {describe how the eamest money will be hetd] . . . ._._... ~__ ...
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receipt of which is hereby acknowledged. and $
the balance of $. 0 00
_ 205 000 00 .... cash. on _ h. _.--_._._
by financing ae shown on the attached Fin..ncing Addendum.
. the OATE OF CLOSING. and
6. DEEDIMARKETAB.LE TITLE. UpOn performance by Buyer. Seller shall execute and deliver a~__.
in by spouse. if any, conveying marketable Utleof record. subject to:
A. Building and zoning Jaws. ordinances. state and federal regulations;
B. Restrictions relating to use or Improvement of the real property witnOut effeCtivetOrfelLure provlsl<)OS;
C. Reservation of any mineral rights by the Sta!.e of Minnesota;
D. U limy and drain ago casements which do not Interfere with existing Improv..ments;
E. Exceptions to title which constitute encumbrances. rastrictlons, or easements which have been disclosed to Buycr and accepted by Ruyar
In this Purchase Agreement lrnust I.>e speCified in writingl:
7. RI:AL ESTATE TAXES ANO SPECIAL ASSESSMENTS. Asal slnate taxas due and payable in and for the yeal of closing shall be pro-
rated between SeUer and Buyer on a calendar year ba.sis to th", actual Dale of Closlng,unless otherwise provided In this Purchase Agreement.
If tax statements for such taxes are not available on the Date of Closing. the. amount to be proraledshall be __. % of the prior year's ta"",,,.
and such estimated proration shall be {strike onel FULLANO FIN~LBETWEEN .SELLER AND BUYER I ~mx~XJIi'
ntK~.;I[IlIaIEJIlIEJ~ . (in which case the party entitled to EI credit as iI. result of the adjustment 5hall receive
the amount.of such credit from . the other party within 30 days of issuance of the tax statements). Seller rep~esents th.e taxes due and payable In the
year(s) ... . 200....~.. ___ will be FULL.. ____ tJl.. -hC;nT~~S1:ead. claSSlfiC81:lon, ,unlesa6:uyer-~hanges, 'the. 'tux claSEdfic3"tionfor "taxes
payable in the year follQwing closing by taking possession of .the real property as Buyer's hOmestead and .flling a nE)W homesteJ;ld declaration within
62 the time required bylaw. If thelaxes due and payable in the year ofcl~jng are PART or NON~hornea1:el:ld claasifi'co"tion.. Sollarahall pay 1:0 Buyer
63 at closing $ . . . in addition to Seller's prorated share of the taxes. If the taxes due and payable in tlte year
64 following closing are PART 01' NON..homostoad classifice1:ion:Bnd~he olosing-1:8kee plaosaftQr. lho_dat:a ,by wl"lich Buyer ml.J~t 'taka. po.tr;~Qcs:ion
65 ot thw fill..t pruJ.lvrt.y ~~ Buyer"s ,hornos:toad 'tofilo for homestead 't'ax 's.ta1:~ for 'taxlli,,;;'du.and payable' in such ye8r: SeHer shllll- fliflvro- BtJyer. 'fJt
closing ~ a9 Sellers share of such taxes.
___ Warranty Deed. joined
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{Strike one:] lIIlIt.EJDNUI"IIlDBRJ6IIDI.IDXIl6IIORI&\1['K.I[:lDKlI'_~JUG I SEL....ER SHA"'L. PAY ON DATE OF CLOSING
all installments of special assessments oertified for payment with the feal estate taxes due and payable In the year of closing.
[Strike one:} 9UI':1IJlI:KIlI1.llIlXlIUI_X I SI;LLER SHALL PAY ON DATE OF CLOSING all other special assessments levied as of the
date of this Purcha::;eAgreement.
[Strike one:] IK,WJIKDrI.III.l[lIUI~:lC: I SELLER SHALL PROVIDE: FOR PAYMENT OF special assessments pending as of the date of
this. PurChase Agreement for jmprovemen"ts "that. h~ve. been,: D~dered- by, the Ci LV ,Councn or Dt:hergovernmentat, assAR6Ing-' au lhuritieus. {Seller' s
74 provision for paymenT RhitU be ,by piityrnen'J: into'.lI!icrctV\,t uf ,1-1/2, l.lmes-1:he est.ima'ted amount of the-o,soe3sment::;;., A:.I of lI1(;# .dULt;, of this
7!i Purcha:Jc Agreemcnt~ 'Seller repre::len1:~'thut Sell~rtH.i'.:ii'n<<>l TC.n:;iOl",CdD Notice of Heeringof e ne,^,puhlio improvemont: projocT from any
governmental assessing aUThoriTY, th" costs of which projec't may be assessed against the rlO"lprupurLy. II" :;l>ucial assessment becomes
pcndi ng ,aftor the. date of 'this PurchaseA!Jre~mElnt ,and befo~e1:h~ [:)~1:~(lf, CJo'Aing" Eluyo..may~a'l: Buysr'$, oJ)'tlon:
A. Assume payment of tile pending special assessment wi~outadjus~I1'IElnt to the purchase price of the real property; or.
D. ReQuire Seiler to pay the. pending special assessment (or Slilcrow fo.r payment of same as provided above) and Buyer sh",i1 pay a commen-
surate Increase inth" purchase price of the real property., wtllCh In.crease shall be the same as the estimated amount of the assessment;
C. or DeClare this Purchase Agreement void by notice w Seller, and earnest money shall be refunded to Buyer.
71)
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O.L/23/2004 .L5:.L3 FAX 763 493 5.L93
if;,] u u ..
P.ll..
, CN.I:l. C.I:l.
MillerfOayisCO.. St. P"ul, MN~Form 1300 (1994; Rev: 1995; R..v.1~7; R..,,_ 2002,) M.S.B.A. no..1 Prop"rty Form No..1
Minn."sota Standard Residential Pui'"Chas(i1 Agreement. ..,.>.;;;,.,.~,~Lt:j~1!;;t;i0"ll;;;if0;S'\!)k< ; \. PURCHASE AGREEMENT f PAGE 2
82 {Strike ont~:J ~~ I. SELLER SHALL PA YON DATE OF CL.OSING any deferred real estate Ial(es (including "Green
83 Acres" taxes under Minn. Stat. 273.11") or speeial assessmonts payment of which is required as a result of the poslna of this sale.
84 Buyer shall pay real estate l<Ixes due an.d payable In the ye"r following closing and thereafter and any unpaid special ass..ssrnents payable
85 therewith and thereafter. the payment of whlc-.h Is not otherwise provided herein. Seller makes no representation conceming the amount of future
86 real estate .taxes or of future special assessments.
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98 10. CONDITION OF PROPERTY.
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B.DAMAGES,TOREALPROPEftTY~I_f 'the real properrv ili tiubstanl:ially damaged prior"toclosino~ this Purohl!lPle Agroemenl: shalt ~erm;~i.I.l4oJ
cnd1:he cClrne~tmoncy.shelJ be refunded 'roBuycr. If1:he realpropsrty iw c,han1agodma"t'arially but: leSE 1:han sUbs1:antiaUypriur Lu closlno~
Buyer mayreseind -rhis Purcnas9 Agreement _ by notice to Sen~r within 21 days aftarSeller -no'tifies Buyer of such damage, duringwhinh
21-day pariod Buyer may inspect the real property.. "nd in the event of such resclssi.on, the earn..,n m<.mey ..haU be refunded to Buyer.
9. SELLER.S BOUNDARY LINE. ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrantfi that builcings. 11' any. ere entfre'Y Wi.thin HI<'
buundc:l.rylines ,of the real praperty~ Seller warrants that there Is aright of access I.u the real property from a public right of way. Setlerwarrants Uu:dthere 113$ been no labor'
ormaleri.,1I furnished to ttltJ real property for which ,peyrnent ha.:;i nolbccn Illacle~ SeU~r wftrrantt!i that thero are no prelKlnl violationii of ..,ny rostrictions; rQl:lting to: the use or
improvement 'Of the reat property., These warranties- shall survive thec:felivRry of the Deed or Contr"act,for Deed.
A.
Seller warrants that all ;appliaryces. fixtures. healing and ai, conditioning equipment. fireplaces (inCluding met:llanisms, dampen;. nues. and
doors). wiring. and plumbing used and located on the real prpperty will be in worning order on the Date of Closing. Seller shall remove all
debris., and aU personal property not Included, in this' sale ,fro"l the roat property before possession date~ Seller has nO knO\Nledga of any
Dutch eim disease, oak will. or other dis<:oas<:oof any trees on the real property.
B. Seller knows of no hazardQussubstances or petroleum pl'()ducts hailing be<:on placed. stored. or released from. or on thlO real property by any
person in violation of any law, nor of any undlOrground storage tanks having been located on. theraal property at any time. except a.. follOWS'
C. Seller's \iVarrantlElS and n!presentatlons contained in ti:lisparagraph 10 shall survive the delivery of the pe..d or Contract for Deed. Any action
baSed upon these warranties and representations must be commenced within two years after tile date on which the buyer closed on the
purchase of the real properLy.
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D. Buyer shall hav" the right to have inspections of lheproperty conducted prior to closing. Unl~s TeQUired tJy local qrdinance or lending
....gulatlons.S..ller does not plan to have the property inspected.
E. SlattJtory Disclosure. Pursuant to Minnesota Statutes sections 513.52 -513.60 (effective January 1, 2003). SeUernll.lst provldo a written
disclosure [see (1) belowl. or Buyer musl have received an inspection report [see (2) below], or auyer. and Seller may waive the written
dlsclosUflO req.uiflOmcmtoo. r,...,e (3) below].
Minnesota Slalule" Section 513.57. Subd. 2. I.JAllIr..ITY.Aseller who tliilsto make a <li"clusure m, requkedby secnon. 513.52 to 513.60 and Was aw..re of
lhe. condiLi(;JJ'I. o~ the real . prnperty .i_R. liable 10. the 'Prospec:tivc..buy~r..A person. inj uTed ,by Q violatinn.. nf" this section'may bring .a.cl,vJl Bction .lInd .reeo~er
d:111'3;ges and receive othcr cquitable relief asdctcrmjncd by, tpe courL An. action under this,.uhdivisionmustbc commenced within lwu yeurs anal" the da-te
on which the prospective buyer Closed_the purchWit:: oruclnst"e.. of the realftrnpeny.
(SQlect oIJ'yo"eof thesethmQ:"]
1.:.J (1) Seller's DI.sclosure. Seller has provided a WTittendisclosure. to Buyer. A copy of Sell..r's disclosure is attached. Seller shall' Correct In
writing any 'Inaccuracies in the disclosure as Soon a.. Teasonably possible before closing.
MinnesC)ta Statutes Section 513.S5. GENBRAL DISCLOSURE KEQUIREMENTS.
Subdi:v~:sion I. CONTENTS.
(a) Detore si~ning an l!gn:t:menL to sell or tnUlsfer residential real pToper~. the seller shall nwk., .. w..ill..n disclOsure to the prospective .buyer. The
dl!;1closuremusl include all nluterial fact!; pertaining to adverse physical conditions in the prup;el'ty of 'Which the seller isawarc-that. could advCl"Scly unrJ
::;ignificanUy affect:
(1) all ordi"arybuyeT's use and enjoyment of the property; or.
(2) any ;ntendcduse of the propcr~ ot'which the .se!leT;s "WID"".
(b) The disclosure must be made in. goud.. fllith Bn~bnsed .ltpon the ne!\t nf the sellers knowlcdgcat the time. uf th~ c.fisclosu,.e~
Min..tlSoLa Statutes Section 513.58. A.MI!NDMENT TO DISCLOSUKI:>.
SuhdiviFiion 1. NQTICE~ ,A seller must notifY the pruspeclive uuyer in writing aS500n asrcasonably possiblc.but in unyr=;vtmJbefof"C',clo!\ing, if the, scHer
learn,S that thcscUeTsdi~ch.JsuTe l-equit'Cd by sectkm 5134.55 ~as inaccurate.
SuboJivi~ion 2. FA f1.URF. TO NOTIFY; LIABILITY. A scHer who tailS to notify the prospective huyer of any amendmentS to the milial "isdo"ure r"IIL,ired
under subdivision liS liable- to the prospective buyer 11~ provided in section.5 t 3~.s7.
o
(2) Insp..cti'>n~e.port.. Buyer has r..celved ..nlnspection Teport by a (lUellfied tIlird-party. If a copy Of the lnspec~ion report is provided La
Seller. Seller shall disclose to Buyer material facts known to Seller that contradict any information in the inspection report.
Minnesota Statute. Section 513.56 Subd. 3. INSPECTION~"
(..) Except as I>r.ovided in Jlaragraph. (1)). a seller is. not required. to disclose infonn..Lion ''elating to the I'hy.<,cal condition of ~he r"al properly If a wrill""
~epor~ thatd~gcloses ~hC Informa~tton has bccnprepa.rcCl byu quulifie::d Lhh'" pany andpmvidecJ Lu tln;; prospective bu.yer.. For purpUZ'it:::i uf lhi~ poilrngl'nph.
qualtfiedthl1"d_paT~ ntCans a tcdCfBI",state.. urluclll govenunental age~cy, oT'anYPeTSon whomthc'SQ11cr..oT.prQSpec.Livt::.bu)'~I.~ n~l1sonably he,lieve!i.has
the: expertise nece~ury lu nb2!el ale industry stal1darol'ii: OfPT.aCtice 'for the type of inspcctjon or investi~uLio.u LhnL hns been conducted by thethird'parry'in
onJer lo pn~lJare the' written report.
(b) A seHer shall.disclose to the 'prospcctivebuyer muteri.uITucts know-'n by tilC seller that contradiccanyinfonnation included illu wriUen r"pL~n under
paragraph {tl)lftl eupy uf the l'epol.t is [)l"ovidecl tn thc seller.
~
(3) Waiv.... of Di..c;I....ure.
Minnesa.taSt.a,tutciC;. Sectinn. 5] :3.60. WAIVOR. Thcwrittcn disclosure required under' sections 513'.521:0 513.nO may be, waived it. the scHer ,and the
IJrn.o:;pc,:ttvc nuyeragrecinwriting. Waiver ot" the disclosure required undeJ' sectiOlls513.52 tn 513.60 does not waive. hmit.orabritJ~t: uny ubligahotl fOl.
seller- dtsclosure created_ by any other law.
Seller and 8uyer w;;aive the written disclosure required und",r ...ctio". 513.52 to 513.60.
SELLEf'<'
Oenni" Allan Cline
BUYER-
W. Peter Enck, Mayur. City of New Hope
SELLER:
Carol A. Cline
BVYER-
Daniel I. Donahue. City Manager; City nF New I lope
Ol/23/2004 Hi: l3 FAX 763 4935193
JENSEN & SONDRALL. P.A.
, ONH OH
i!?jOOiJ
Mille~/Davis Co.. St. Paul. MN_Form '\300 (1994: Rev. 1996: Rev. 1997; Rev. 2002)
Minnesota Standard Residential Purchase Agreement
M.S.6.A. Real Prop....~y Form No.1
PURCHASE AGREEMENT I PAGE 3
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Ottler thanlt1e warranties andrepresentationsrnade In this I>~rag....ph 10. thepmperty Is being .sold .'AS IS" with no. ..xpress or implied
representations or warranties by Seller as to phYlilical 'conditiofls. quality ofconstJ'uclion. workmanshlp;or fitness for any particular purpose. (ThiS
paragraph is not intended to waive oi"nmit any provisions of Minn.'$tat..Chapter 327A.)
11, DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority as to. violation of any l"iN. ordinance or
regulation affectillgthe real property, If the real prnpeoiy i.. ",ubj"ct to. ro..1rictivecov..nants. Sel~er ha", not .re",,:,ved a,?y ~otlce fr~fT1 .aflY person as
to a breach of the covenants._ Seller ,has not received any notice from any govemmental authonty concerning any .emlnent domain. condemna lion.
special taxlngdjstrict. or re:.<oning.proceedings-
12.TRUTH-IN-HOUSING. Buyor aCknowledges receipt of the Truth-in-Housing Disclosu~e Report or othcrinspection report if required l.Jy the
m:unicipallty tn. which th.e ~al praperty,is.located.
13. POSSESSION. Seller shell deliverposl;ession of the property not later than . closing. All inte~t.fllel 011, liquid petroleum
gas and 'all.'cnargestor City water, city68Wer, electricity, and natu....l ga.. /fh..1I be prorated betweentheparti........ of ~~,-
:::dIlk,.p~~_~tr.x~.~1I!li',,_~~~~JiJ'U"U_Ii~RmJ[]t__~701x.-x:x
~lI!ltX~_.xDQlllnU'c__'*~lm~~lU'J[~_~"'mI~~~tme:'"'1tt!Ol'Llllq~!II:~i1IK]f~~"
)lJUX"~_:lIiJl:il:ll ~_ lElmi1QlJIll....."'_".."''''~XiJ<_I'~_lIIIlIilIt_~:a.'Il,~..i',..n~ini'JlflOlEl(~1IrJl[_a:x
"",' .' ....JU<ICI;;JlIllElt~lJI.._lHi'~_V1llX>>:ml~li::miIlfl1lfX>>.~lIilII:lIlSill;JU.lIIU.::u<<J(lfd[JW1IlOO>>IC.X
JBiI'l' : ~~~__EJt]I]l!lIlII[lI<If$JIilI!IjIr.Jtll'dWl~iIaDt"l5J11l11lXX11:~ll>li~lI<<al"-..II"'$-_a:x
~ . . H1IflIr'QiiJ!UUt"'i01~~Q1lm::li'.H.~.~XElitill_lIIJl:iI:....IIC:IliSi1lIBt_w:.-;.~--'>U:x
, ~ " . ' ,'" ", ' '" ,1l'IXiJII1f~...WM~_~l'...'~~v.v..~--a;JI~,lCln"grtllax<<:x.,Xe1U'..1XX
XXBl_l(lI_~~\JCXlIi~'IQS1[~~x~___~~~~~~DIr'llillll'U3>>X.~x
JUdll[__iIIlIl_:!l;iIUIL:IiJ[....~S.an: . . See AdditionaJ Terms. -
15, TnLISCQ~~~c::TIQ.I\ISMDRE,..jE!Ples.selliershall have 120daY5;fro~ receipl oiBuye~s III!rttten title .0bJectlons to'Tl:;lkc title marketable.
UponreqeiptofBuyer/...tltleobl"ction...S...I....~shall. wittlin 1:&n (10.) busln..ss days. .,otify &ryer of Seller'sintentl~n to make tiUs marketable within
the 120 day period. u""ris orenCWTlbrancesfor liQuidaled amounts which. oaf! be released by payment or escrow from proceedlil of closin9 shall not
delay the closing, Cure of the defects by Seller shall be reasonable. diligent. and prompt. Pending correction of title. all payments requlreCl tlerein
and the closing shall be postPoned.
A. If notice js given an!,! ;Seller m..k!3s tltle marketable. then upon presentation to Buyer and proposed lender of documentation establishing that
1I1Ien<!lilbeenrn;ade arid If iet;>led to In the same time.c\l')d rnannor.as.~e original title objections. the closing shall take placs
.within1:&n(1o.,)!>usin . t "n'." '.. led closing date, ~Ichev~r is later. .... ". . . .
B. If notlee Is given a,..'!!! ' 'ee . d faith to make title marketable butthe 120. day period expjres withoutlltle being made ff1arl<etable,
Buyer may dj!lclan;l ~Is urase . lent vo.ld bYl'lotice to Seller. . neither party shall be liable for' damages hereunder to the other. ana
earn.est money be refunded to~u)ler.
C. If Seller dbes. . . '9<' .of ifltention to ",..k" title marketable., or If notJeels given but the 120 day period expires without title being maue
marketable. d\-,erailuretoP~<>Feed in good faith, Buye~ may, seek, as permitted by law. 'qne or more of the followlng:
1. prnt".8l!ldto, cl .'. out W"di"eror.mcrgerIn the Deed of the objections to title andwlthout waiver of any remedies. and may:
(a) 5_'" (/!'!!1'..9 !~i liiInp,reiISQnab'e lawye...~f...... 1'rtlm,SeU..r .as permitted by law (d...mage:l under ',this subparagraph (a) "h"lI be
.' .lilT1itedtoUie,.: ol>jec;tions,to title. and consequenticd damages are excluded); or
(b) UndertakepI'P ~rrect .the objections to title:
2. Rascission Of this Agl"eElme..,tby nolice as. provided herein. in which caselt1e purChase Agreement shall be' null and void and all
earnest money , ~~n~..d to Buyer;
3. Dam~r wit'" a.nd reasonable lawyer's r....s. as permitted by law;
4. Spesi~. ffer such right of action arises.
0_ If title Is~ ". ' . . , e m.. , eas provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of
the folloWIng options, as . iUed by.law:
1. canneJ IhiE> Cf?ntr~t ,~ti pro.vhJ~tJ L:r~ '.lalule and retain .n plllymc:nf::;5;' made l.crcundcl'". CIS liquidated damages. The P'::II'tIC8 ocknowledgtil thQ-ir" inluuliul. lh':tl 011Y notA
given PIln;.Ur'-~t:to 'this:eontract"i~,a:t;tow"- pa~fT1ent'note. and may be presented for paymenl notwithstanding cancellation:
2. Seek,specifi~ !pef1fijfr:na~, :wi~in,sJxi:mQPth=uift~r' such right of action arises. including c..-os1s and reasonabl$ lawye,r'$-,fee6, as permitted by law.
E. If liUc i~ rru:lr1<elable. or i~ rnsq6! m;;tda!lta.I:?J~;~~" prpvjded herein, ,and: Seller defaults In any of the egreE!manls herein. Buyer nlay. as. ~nnittttd by law:
1. Seek danlqges. _~rom-~;elle~ ,~nc::l4difl9 co~ts and,f"C'a~gnGlbf~ lawyer's fees;
2. Seek specific perfQrml'lnce within six months afte~ suct:' right of action arises.
16r NOTICES.. All noticc5, r~ui~d nerei~ shall be hi: writing <!:I'nd delivered personally or mailed to the addrQ8s' QS shown :at Par3graph 1 cabnvQ ::and
it mailed. Clre effectiv~ aso~.the date :afroailing. .
'17. ~UBOIVISION, OF~ND.lfth1s sl!'i~constitutes or requires a subdivision of land owned by Seller. Seller shall pay all subdivisIon expenses and
obtaIn au nec:;essalY governmental ,,"pprovals. Seller warnmt" thaL \he legal d....cription of the real property to be t".onv"yed has been or will be
3pproved for recording 'as of the D.au> of Closing. '
18, MINNESOTA LAW, This contract shail'be governed by the laws of the State of Minnesota.
19. WELL DISCLOSURE. [Check olle of the following.]
-'7 S..II..r certifies that Seller does not know of any wells on the r",..1 properly_
.:!!tL Wells on the real property are disclo.sed by Seller on the attached Well Disclosure: form.
20. SEWAGE TREATMENT SYSTEM DISCLOSURE.
{Checl< either A or B:/
Y.. A. Seller ~rlifies that sewage generated at the property goes to a facility permitted by the Minnesota PollutlonContJ'ol Agency (for
. e~mple. a city QrrllUnlclpal sewer system).
B. Seller ~rtifies. that sewage 'g~nerated at the property does not go to a facility permitted by the Minnesota Pollution Control Agency
. and Seller's Disclosure of IndIvidual Sewage Treatment Sy~terTI isaltached (..ttacll form). .
(Checj< either C or D:1
y" C. SeU".. does not know if there!s an abandoned Individual sewage treatment system on the property.
D. SeUerknowa th.at the.... [8trikc one:) ere. I ere no abandoned individual .sewage treatment systems on the property If Seller
d,scl?lle". the eXIstence .of an abandoned individuallilcwage tJ'eatment system on the property, then Minnesota law requires that the
IQCEJtion ,of the, ~ystem, be disclosed to Buye;r_ wiU~ a map~ IAttach Seller'!I Disclosure of IndividuoJ -SewlJgc ,TrL.'tI/~",jml SVSllU" vvi/ll map
CDfT1pJ9t8d.J
21_ LeAD PAINT DiSCLOSURE. [Check one. or The rol/olNing:}
~ SQUar ral?rasents that the dwelling was-constructed on the -ralEll property in 1978 or tater_
:!!>L.Seller represents that the dwelling was constructed on the real Property before 1978. (If such housing is located on the real prap- erty
attached and made a part of this Purchase Agreement is "LEAD PAINT ADDENDUM FOR HOUSING CONSTRU.CTED B.EFORE 1978".) .
22. WETLAN~S. SHORELAND, AND FLOOD PLAIN CONCERNS. Currently the law doe.. not require Seller tv disclose Sellers knowledge. if
any. of the eXIstence .ofwetlands; shoreland, or flood plal.n on or affectlllg the real propeoiy. If Buyer has not already invesligated tllese
concerns. Buyer might want to Include SeUer's disclOSUres regarding these concems. {Check !hit bDx ~f /hit fallowing pl'DvlS'D" . D. ADDENDUM
IJpplles to thiS Purchase Agrec:rnc:t.':!
:rOel PdURdCHASE AGREEM(;NT: WETLANDS. SHORE LAND AND FLOOD PLAIN DISCLOSURE M.S.B.A. Real Property Farm No 8 (1997) Is
In u e as an addendum to this PUrchase Agreement. . .' . .
~3i' SE.LLER'S AFFIDAVIT. At closing, Seller shall supplement tne warranties and representations in this Purchase Agreement by executing anu
c rvenng a M,"neso~a ~n1form Conveyancing Blank [Form No. 116-M. 117-M. or 11B-M] Affidavit of Sene~.
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Ol/23/2004 lu:l3 FAX 763 493 ul93
'lid Uut>
> Cl'iH eH
1\..
Mm~rfDavls Co., st. Paul. .MN-FoTrn ..300 (1994; Rev. 1996;.nl"~: 1997; Rev. 2002) M.S.e.A. R.,,,I Propen:yForm No.1
Minneso~ S~ndard Residential Ptilreha$eAgmement . .... ....> ."""s,!,? .. . PURCHASI; AGRI;EMENT f PAGlE 4
268 24... CLOSING. Closing shall be at the office of Seller's la;."yer, Buyer-stille jn~urer. or at some other mutually agreeable location.
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{StatsotheT location.'] _l~eW..lJoJlc:.i.:it\LIlall, 44rl 1 X}dQll.AY.en.w:...hIfll:.NCl!!LUopc, Minnesota 55428
At closing, Seller and Buyer shall disclose their Social Security Numbers or Federal Tax Identification Numbers for the purposes of completing
slate and federal tax forms.
25. ADDITIONAL TERMS, · 14 F:XAM1NA,..TON OF 'TITT F: R"Y"T "hall ,,"tHin, AI !'>"lIor'" ""z>"n,,".aCoarunitmenl for an
Owner'sPoliC)'-a,f,Title ~ rn~uran~ll!!! DAA-J:urrent..ALTA torn" i~!l:ll@d by anin~nrer 1icen~f!d to urnte. t:11:le _ ingll,.~nl':,r. in M inrtp-~ot;lJ
Sie.ller~I:'Udl he'l"'e!lO:pnn~-jhlp Tor pHYIT"~nt-~,nF'thnc:p. ,...nrl~np&'"!P'lOl~Hry 'tn VT'~I"''Irpr.;:1Ir~lt._CuUlnJitnu:nL~iru::.11ldin&, but llot IUllited to
abstracting feeS,name ,.eareh f"ee,"",.ervi.Ce eha:r:ges, ete ..Buyer ,.hall pay the premium tor .the..Q~.enli..,y nf''I'itle (n"urance.
BlQ/= shall h~v~ te;n (1.0.) hu,.ine"" d"y" "fter Teceipt nt"the'Conunitrnent filT Till., Tnsur.aru:cLO ~c Sellel' with a copy of the
Cnn,mitrneot and written nbjedinn,. ~l1)'er ,.ha.,1 ~.. deemed to ha.ve \Waived al'\Y tjtleg!:Uectinn" not mf\Qe within the ten (] O,l.Jiay
peTinq "hove eXI;"pj. th..t thi"sh..IJ 'lot oper>lt" >IS " ""..iVl'T of !':..lIeT's '"Ilven"nl Ln_dc.lLver a SlaI.ULUI:)' Warranty. Deed, unless a
W"TT3nty Oeed ;1< nnt spel';fied ;;tbove It" Buyer obtain.. title insurance, Buyer is.noLwaOOng.the right to nhlaULa..go.a.d.and
TnHrketH'hle title nfrL!:[-nrd frnm~cllt_"T ._.______
26. ADDENDA. Attached .....
"l
ed,jend" which ere mede e p..rt of tnl.. Pureha"e Agreement.
27. TIME IS OF THE ESSeNCe. Time is of the essenCe for all provisions of th;,. Purchase Agreement.
28. MULTIPLE ORIGINALS. Seller and Buyer have signed [number]
3
originals of this Purchase Agreement.
297 THIS IS A LEGALLY Q'N~ING CONTRACT.B~FORE SIGNIN~. CONSULT A LAWYER. Minne.ota law permibUcensod real es.tate
29B brokers and aale. agentata prepare purchase agreements. No recommenclaticm or representattr:m ITII1Y be made by any real estat<<i'
299 broker or sale. . agtmt ..to the legal SUfficiency, the. legal effect, or th.e tax consequences Dfthia contract. Th..se. a.... question. for
300 your lawyer.
I agr$EI to sell the pl'C>perty for the price and terms and conditions
set forth above.
I. agree to. purchase the property for' Ule plieo and terrnsand
condilions set forth aboVe.
(date)
BUYER
W. Peter Buck. Mayor
Cily of New Hope
(date)
SE;;LI.l;R'
BUYER:
Carol A. Cline
Dantel J. Donahue, City Manager
CiwofNew- Hope
(date)
(date)
Thio; Purchao;e Agreement WBS prepared by:
Jensen & SOndraIl, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn f'at'k,MN 55443
(763) 424-881 1
Others WhO Will aasin Seller or BI.I r wi fhiS transacrJon:
Lawyer For Buyer
Telephone:
Facsimile:
Steven A. Soudrall
Jenseu.& Sondrall,p.A.
8525 Edinbrook Crossing
Suite 201
Brook1yn Park, MN 55443
(763) 424-8811
103391
I.,istll'lg Agent and Brdker fClr thl$ tral'lsaction arOll:
Telephon..:
FaesimU.:~
N/A
Selling "gent and' BrOker for this transaction are:
Telephone:
FaCSimile:
NfA
0:1/23/2004 :15::14 FAX 763 493 5:193
JENSEN' & SONDRALL. P.A.
" CNHCH
~oo.,
Buyer's or Lender's TItle Insurer:
M.S.B.A, Real Property Form No.1
PURCHASEAGREEM~NT/f'AGE5
Miller/Davis Co.. St. Paul, MN-"Form 1300 (1994:' Rev. 1\:)96; Rev: 1997: Rav: 2002)
Minne>;ota Standard Residential Purchase Agreemel'lt
Facsimile:
Old Republic National Title Insurance Company
40U Second A VCIlUC SO\.lU.
1'4i1Uleapolis; .M:N. 55401
01.,(23/2004 Hi:.14 FAX 763 .493 5.193
JENSEN & $ONDRALL. P.A.
, CNH eH
'>!JUuo
I
Schedul~ '~A" '-iE'$J.~tDescrlption
~
The South 100 feet of Lot 38. Auditor's Subdivision Number 226. Hennepin County, Minnesota, according to the plat thereof on
file and of record in the office of the Register oTDeeds, in and for Hennepin County, MinTlesOla, .t:;xeepting thercf'Tow
The We..t 7.0 reef of the following described tract;
South 100 feet oO...ot 38, Auditor's Subdivision Number 226, Hcnnepw County, Minnesota, eXcept road.
0.1/23/2004 .15: .14. FAX 763.493 5.193
JENSEl" . 60. SONDRALL" P . A .
, CNtl.C.i:i
MlllerlDavi& Co. C St. Paul. MN 661-642-1988
"...-- Form .1~19Y
ADPISNOUM TO PURCHASE AGREEMENT
DISCLOS9RE OF INFORMATION ON.LEAD-I3ASED
PAINT AND LEAD-BASED PAINT HAZARDS
This form approved by the MinneSota Associ;;rtion of
REALTORS(!), whlchdlselalms any liability
srisir'l9out: of"se'or,mfsusaaf:thl$ -form.
e :i!OOO, Minnesota AssociatlonofREA.LTOR~<B>.l;j:lina, MN
Date 2004
Page 1.. _
AddenduUl to Purchase. Agl'cc~cnl bCLW',,<"'T1 parties dato;>d . <.. '. ,2QQ.~_ pertaining to tI.1e purchase and
sale of the property at 5400 Winnetka Av.enue l\J"ol'th, l\J"Gw.HOplo:, MinneOlot~ 'iS42R
Section 1 ~ T.ead War"ning StatelD.~Dt
Everypurchaserofany intc7'cst in residential real properly em which a residential dwelling was bu.ilt prior to 1978. is norified tltat
such proportymay present ~pC1sure to l....d frOl'n IBad-ba.~ed paint that 'nay place young child,.tm at risk of developing lead
poisoning. Leat! poisC1ning in yq..ng children may pmduce permanent neurological damage. including learning disabilities,
reduced intelligence quotient, behaviqral p1'oblems, an4impai~ menuH-;Y_' Lead poisoning al.5o poscs a particular risk to pregtJa"t
women. The seller ofany..mlt;reJ>.tin residential real property is required to p'YJvidc the buyer with any i'4formation on lead-bWi'ed
paint hazard,,; from risk .....se,:,.sm9nts 01' impections in;. tlJ<>. seller's possession and notifY thebuy.cr of any known lead-based paint
hazards.' A risk assessment or inspection for possible leat!-base.d paint ltaza7'ds is recommended prior to purchase.
Seller has no knowledge of'lead-based paint andlor lead-bas cd paint hazards in the ho-usinS.
(b)
o
D
Records and reports available to the seller (check. one bt:low):
Seller has provided tI.1e plJrchaser with all. availablc rccords and reports. pertaining to lead-hased paint and/or
lead-basedpilw.t 4a;<:arcls in the housing (list documents below). .
Scll~ has no rCPQm. or l'CCords pCl.taining \0 Icad-bwu:"l puinL ~Jior IclIoll-b~~,j"pJlint hazards in the hOluoins.
Pllrchu!lerts Aekno'WledglDtUlt (initial)
(c) Purchaser hasteceived copies of all intonnation listed under (b) above.
(d) Purchaser has reccived the pamphlet ProleCt Your Family p'om Leacl in Your Home.
(e) Purchaser has (check one below):
o Rt:ct:ived.li IO-dayopportunity(or mutually agreed upon pc.'Tiod) to cunduetllriltk asscSb"JDcnL or insp<..'Ction for
the presence of'lead-based paint and/or lead-ba.'1ed paint hazards (If'chccked. see Section II below); or
~ Waived the opportunity to conduct a risk asseSSlUent or inspection tor the presence ot" lead-based paint and/or
leadlbased paint hazards.
Real Estate Licensee's Ackuowlcdgment (initial)
N/A (f) Real estate licensee has infoJ'Tl'\ed the seller of the l!leIler's ubligations Wlder42 U.S.C. 4852(d) and is
ware of licensee's responsibility to ensure compliance.
Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowl~gt:, that lbe information
provided by U1e signatory is ll.ue and accurate.
Date
-..----
W. Peter Bnck, Mayor, City ofNcw Hopc
Purchaser
D...-nni" Alllln Cline
Seller
Date
Ciu-ol A. Cline
Seller
Daniel J. Donahue, CiLy MHllHger, City ufN..w 'Hope
Purchaser .
Date
Dale
Real Estate Licensee Date Real Estate Licensee Date
~uti&1l n~ . CLl'lriinge_y.-fmitia1-m>Hy--;.f:..fi~t<-Q___"mdeJ' ~.ul'ehe!llWt8 AoIlkt1~IIlIl' 18"_ (Ill) IlS_lInitt
This contracL is contingent upon a risk assessment 01- an inspection of. the property tor the presence of lead~ . nt and/or
lead-based paint hazardsfo be conducted at the pUTcha.'1er's expense. Thc asscssment or insPection sbll npleted within
ten (10)/ _ c~endor days lUter occept",.ce of the Purchase Agreement. This contin a I be deemed removed, and the
thc~ ~m..nlli1hull bl: in full fo'.ce and effect, unless purchaser Or real lcensee assisting or acting on behalf of
p.urchaser delivers to scHer or real estate licensee assisting or acting on t- seller Within three (3) calendar days after the
assessment Or inspection is timely completed a written list oHhe c deficiencies and the corrections rcqu.ired, together-with lit
copy of' any risk !\l'lse....ment "'J' tnllpection report. If t~H!!".and purchaser have not..grew in writing wilhin thtee (3) calendac
days after delive~ofth.C W'rittc.n list ofrcql!i~~rion.. tha. t: (A) SOme or al~ ofth.e required corrections will be made; o.r (B)
the purchaser waives \he dc!iCle~IJf"'(c.) an adjustment to the purchase pnce Will be made, the PUrchllS.e Agreem.enr shall
automatically be deem . "lffi3 void, and ell earnest. n10ney shan be refunded to the purcha>:er. It is understood that thc
r>urcha.~er ma: . a ty waive deflcienei1:,S Qrdetects, or remove this contingency, provi4Jing thul the pw'Chaser Qr the real
estate. e assistin!!: or actin!!: on behalf or pun.:haser nollnes Ihe seller Qr real estate licensee assisting or .acting on behal f "f
. .... t1oe-~
TLX:SALE (9100)
WARNlNO: UNAUTHORIZeD COPY'NG OF THIS FORMPROHlal"t1!D.
""""
O~/23/2004 ~G:~4 FAX 763 493 G~93
JENSEN & SOND&~L~. P.A.
C;'n vn
~...............
Miil.,../Devi=- Co~@ Sl PCluf, MN 851-642-1988
Form 1..$17--W MtnnesotaWell DISC;losureStOJlernunl (Fh.!visuu 11JO~1
MINNESOTA WELL DISCLOSURE STATEMENT
Minnesota Law requires that before signing an agreement to sell or transfer real property. the
seller must disclose information in writing to the buyer about the status and location of all known wells
on the property. Tl"lis requirement is satisfied by delivering to the buyer eIther a statement by the seller
that the seller does not know of any welts on the property, or a disclosure statement indicating the legal
description and county, and a map Showing the location of each well. In the disclosure statement the
seller must indicate, for each well. whether the well is in use. not in use, or sealed (Minn. Stat.
91031.235, subd.1) or known statutes.
A seller Who fails to disclose the existence of a well at the time of sale and . knew of, or had reason
to know of, the. existence or known statusofa well is liable to the buyer for costs relating to the sealing
of the well .and . reasonable. attorney fees for collection of costs from the. seller. if the action is
commenced within six years after the date the buyer closed the purchase of the real property where the
well. is located (Minn. Stat. 9103L235, subd. 2).
Instructions for completion of this form are on the reverse side.
1 _ PROPERTYOESCRIPTION
Street Address: 5400Winnet:ka Avenue Nor:th.__New H.Qpe~ MN 5542..8._ ___
Hennepin
Co.unTY
2. LEGAL DESCRIPTION SRP-AttAr-hAd Schad'lla "A"
3. WELL DISCLOSURE STATEMENT
CChecktheappropriate bdx.)
r---:-
,
The seller certifies that the seller does not know of any wells on the above described real
property.
If this option .ischecked, then skip to the last line and sign and datElthis statement.
The seller certifies that the following wells are located on the above described real property.
MN. Unique
Well No.
Well
Depth
Year of
Const.
Well
Type
IN USE
NOTIN SEALED
USE IUcen..d 'Contractor
Well' 1
Well 2
Well 3
1-
n
4. SEALED WELL INFORMATION
For each well.designated as sealed above, complete this section.
When was the well sealed?
Who sealed the weH?__
Was a Sealed Well Report filed with the Minnesota Department of HElalth? Yes
5. MAP
_..No
Complete the attached map showing the 10ca1:ion of each well on the real property.
6" CERTIFICATION BY SELLER
I certify that the .information provided above is accurate and complete to the best of my
knowledge.
Dennis Allan Cline
SeUer or Designat:ed Representat:ive Date
Carol A. -C;I;;:;-e------~---- - -
Seller. or .De.::;igru.ltel.l. Representutive
Dare
WARNINC: UNAtiTHORIZED COPYING QF"I'H1S FORM.PROHIBtTED.
IH/23/2004 .15: .15 FAX' 76349,3".193
JENSEN &SOND.RiI.LL. P.i>..
) Cl"-h' ,C.t1
~"V.L.L
INSTRUCTION' FOR COMPLETING THE WELL DISCLOSURE STATEMENT
DEFINI"r'lON
.LX "WElII" meahsah excavaticmtha't is drilled, cored, bored, washed,.driven, dug, jetted, or
otherwise constructed if the excavation is intended for the location, diversion, artificial recharge, or
acquisition of groundwater.
MINNESOTA UNIQUE WELL NUMBER
AJI new wells constructed AFTER Januery 1, 975 should have beenessigned a Minnesota
unique Well number by the person constructing the well. If the well was constructed after this date
. you shou'd have the unique well number in y.our property records. If you are.. unabletofocate. your
unique well number and the well was constructed AFTER January.. 1, 1975, contact your '^felt
contractor. .If no unique well number is available, please indicate the depth and year. of construction
for each well. .
WELL TYPE
Use one of the following terms to describe the well type.
D
WATERWELL A water well is any type of well used to extract. groundwater for. privateJor
public use. Examples of water wells are: domestic wells, drive-point wells, dug weHs,
remedial wells, and municipal wells.
IRRIGATION WELL An irrigation well i.s a well used to irrigate agricultural lands. These are
typically large diameter wells connected to a large pressure distribution system.
MONITORING . WeLL A moni'tOring well is . a well used to monitor groundwater
contamination. The well is 'typically used to access groundwater for' the extraction of
samples.
DEWATERING WELL A dewatering well is a well used to lower groundwater levels to allow
for construction or use of. underground spaces.
D
o
D
o
INDUST.RIAL/COMME:RCIAL WELL An industriallcommercial well is a nonpotable well used
to extract . groundwater for any nonpotable use including groundwater thermal exchange
we.lls. (heat pumps and heat loops).
WELL USE STATUS
Indicate the use status of each well. CHECK ONLY 1 BOX PER WELL.
D
IN USE A well is "in use" if the well is producing sufficient water to meet its intended use
and is being operated on a regular basis.
NOT IN USE A well is "not in use" if. the well is inoperable and not. in use.or the well is
disconnected from a power supply and is not sealed.
SEALE:D A well is "sealed" if the well has been sealed by a licensed .contractor and there is
a Sealed Well report on file at the Minnesota Department of Health; A properly sealed well
has been sealed by a licensed contractor by pumping grout throughout the entire borehole
from the bottom of the well.
D
o
D
NOTE: If a well is inoperable and not in use o.r disconnected from a power source, it must
be sealed by a licensed well contractor ora well owner must obtain a maintenance permit
from the Minnesota . Department of. Health and pay. an annual maintenance fee .If . a well is
operable and properly maintained. a maintenance permit is not required.
""""" . .~
0.1/23/2004 .15:.15 FAX 763 493 5.193
JENSEN & SONDRALL. P. /1. .
> Cl'h Cn
4iJ V.i..,.;,.
MAP
.. ',.:_; .' ,C,_,_, .'..'
. , ",,'", -, .:,::'..; .: YC;:,' "~ ,':,:, '->:
Please use the space below to sketch the real ptoperty being sold and the location of EACH
well on the property.lncl.ude distances from fixed reference points $uch 8$ streets and buildings.
USE ADDITIONAL SPACE ON BACK IF NEEDED
0.1/23/2004 .1G:.1G FAX 763 493 5.193
JENSEN & SONDRALL. .P.A
J Cl'\.tJ. L.U
"b..i.v...J...:"-'
I
Schedule. ""A". . L.egslDescrlption
The $uulh .100 feet of Lot 38, . Auditor's SuJ,division 1:-l L!mb~r:226, .li<>nncpin <;;o'lmtr, Mill~csol.a.llc~ording to.tb.e plat thereof 01'1
file and of record in t4e office at. the Register of Deeds, in and far Hennepin County. Minnesota, Exct:pLing tliereftom
The West 7.0 feet of the followiug described tract:
Sauth 100 f'eetafLot 38, Auditor'", Suhilivij,lion Number 226, Hennepin County, Minnesota, except road.
O~/23/2004 ~5:~5 FAX 763 493 5~93
JENSEl'i & SONDRALL ,p, 11. .
) C.L"tt 0.tl
ihJ. U..1..-<s-
MiHerJDBvisGO. <9 5t. paUI.MN 'O~1-0.42..1gee
Form 1519SS(Rcv. 11/02)
PRIVATE SEWER SYSTEM DISCLOSURE
This form approved by the Minnesota A::lsocialion of
R~L TORS@. whiCh Qi..claims any I'ability
ati::ling oUI of use or misuse of this form.
e 2002. Minnosot'" Assoeiation of REALTORS@. Edina. MN
i. Date ~~_._.__---.-2(l04 n'__.
2. Page 1 Of --------2.... .. f'>ages: THE ~EQUIRED MAP IS
3. ATTACHED HERETO AND MADE A PART HEREOF
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
1B.
19.
20.
21.
22.
23.
Property located at~--. 5400 Wjnne!1clca Avenw, Non-h... .___
in the City of NeW' Hope. County of _ Hennepiu State of Minnes.~. legally described as follows or
attached sheet (the ~Property") l';cc Hu....c.hl:d Schedule "A". ___._.
This disclosure is not a warranty of any kind by tI"1e Seller(s) or any Licensee(s) representing or assisting any Party(s) in this
transaction, and is nota substitute for any inspections or warranties the Party(s) may wish to obtain.
BUYER(S) AND SELLER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPECTIONS
OF THE SEWER SYSTEM AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEi;:N
BUYER(S) AND SELLER(S) WITH. RESPECT TO ANY ADVICE/'NSPECTlONIDEFECTS.
SELLE~'S INFORMATION: The follOWing Seller diselosl.lre satisfies MN. Statutes Chaptet 115.55. The Seller discloses the
following informlatlon with the knowledge that even though this is not a warranty. prospective Buyers may relyonthis information
in deciding whetl"1er and on what terms to purchase the Property. The Selleres) authorizes any Agent(s) representing any party(s)
in this tl"l;lnsaction to provide a copy of this statement to any person or entity in connection with any actual Or anticipated sale of
the Properly.
Unless the Buyer and Seller agree to the contrary In writing before the closing of the Sale. a Soller who falls to disclose the
eXistenCe or knowl1status of an individual sewage treatment system at the time of sale, and who knew or had reason to know of
the' existence or k;nown status of the system,. is liable. to tho Buyer for costs relating to bringing the system into compliance with
individual sewage treatment system rules and for reasonable attorney fees for.collection otcosts from the Seller. An action under
this subdivision must be commenced within two years after the date on which the Bl.Iyer closed tI"1e purchase or the real property
where the system is lOCated"
24. Leg;!;!1 requirements exist relating to various aspects of location . and status of individual sewage treatment systems. Buyer is
25. advised to contact the local unlt(s) of govElmment. stateageney or Qualified professional which regUlates individual sewage
26. treatmenlsyslems for further infonnation about these issues.
27. The following are' r'i"presen~tions made by the. Selleres) t6 the extent of the Seller(s) aclual knowledge;' This information is a
26. disclosure and is not intended to bE! part of any contract between the Buyer and Seller.
29.
30.
31.
32.
PRlVATEStaWER SYSTEM DISCLOSURE (CHECK THE APPROPR/A TIE BOX.)
,~ The Seller certifies that thQ. Selhar poes not know of any private seVllersystem on or serving the above described real
property. (lfthi$ option is checked, then skip to the (ast line and sign and date this statement.)
8 The Sellercertlfies that the following private sewer system is on or serving the above described real property,
33.
34.
TYP/::: (Check appropriate box(es) and indicate location an attached MAP)
n Septic Tank:.. . LJ with drain field ""1 with mound system
l ! Sealed System (holding1;enk)
C Other (Describe): '..
! with open cnd
L-' seepage tank
35~
36.
37. Is the sewer system(s) currently in use?
yes____. No _____
36. NOTE: If any water. use. applianc:e. bedroom or bathroom has been. added to the Property. the system may no longer
39. comply wlthappJicabla $ewagetreatment taw.. Bnd rule$.
40. Is the seWer system(s) in compliance witl"1 applicable sewage treatmenl system laws and rules?
41. When was tI"1e sewer system installed? Installer Name/Phone:
42.
Yes. ...__ No_
43. Where IS tank located?
44. What is tank size? When was the tank last pumped?_..
45. Where is the drain field. located? .'.'
46. What is the drain field size?
47. Describe work performed to the system since you have owned the Property: _.
48.
~ How often Is tank pumped? __cc.
49.
50.
Date work performed/by whom: ___ __ ..__.__. ~____.____...
Is sewer system entirely withil"l Property boundary lines, including set back roquirements?
Is the system shar~d.? _______ How many uniL.. on system Annual fee?
Comments: __. ._
51_
52.
53. On this Property:
54. Approximate number of: people using tI"1e sewer system. _ showers/baths taken per week _
.__ wash loads per week
55. Diswrice between well and sewer systGm: ._.
56. Have you received any notices from any government agencies relating to the sewer system? Yes ._~~. No'_ ..
57. If "Yes", see attached notice.
MN-PSSD (8/02).. ORIGINAL COPY TO USTING BROKER; cOPIes TO SELLER, BUYER S.. ELLING BROKER
W'ARNING= UNAUTHOIiU2:;II:D COPYlNO.OP Tt1I3 PO"MPft.OI1IDITI'::U. . . . . .. . . ...1 ..
01./23/2004 1.5:1.5 FAX 763 493 5193
JENSEN. &'SONDRALL. P.A,
> Ul'<ti Uh
46.i u 1..j
Form 1519SS (Rev. 8/02)
PRIVATE SEWER SYSTEM OISCLOSURE
58. Page 2
e9.
60.
61.
62.
Are there any known defects in the sewer. system?
If yes, pleasee;Kplajn
Yes_ No_
63. SeLLER"S STATeMENT: (TO be $ignecl at tlmBor listillg)
64. II We. Seller(l5)of the Property B(".kn(lwledge the above Private Sf;!werSlIsl.l;!m Disclosure and MAP and authorize Usting Broker to disclose this
65. inl'ormationto prospective Buyers.
66.
(Seller) Dennis Allan Cline
(Sen..r)Carol A' Cline
(Delle)
(patP.)
67. BUYER.S ACKNOWLEpGME....T:(Tobes/gneclat t/171epfpurchasq agreement)
68. I/We. the Buyer(s) of the .Pl'Opertyacknowledgereceiptofthe f'rivate Sewer s)"sterrrpj$c!osure and agree thai no representation
69. regarding the (::Ondltion of thElPrivateSewerSystern hays bf:lel'1 made.. otherthf;lnt\1o!>E)mac!oabOVO. LISTING BROKER AND
'fa. LICENSEES ""AKE:. ~O REPRESENTATIONS.ANO ARE NOT RESPONSIBLE FOR ANY CONDITIONS EXISTING IN THE
71. PRIVATE SEWERSVSTEM.
72.
!suyer)W.Pf'tcr Bnck., M"yoJ",C:;il.y orN",w Ilup'"
(Dale)
(Buy..r) Panicl J, Don.....ue. Cil)' ~~ug",,'.Ci~ ofNC'oV Hop",
(O..!:Jlc)
73.
74.
75.
76.
SELLER'S ACK,.,OWLEDGMIaNT: (To be a/fined at tllT!~pfpUrcha$C ag~ement) ...... ..
AS OF THE DATEOFl;HEACCEPTANCE OF..,.HE PURCHASE AGRe:EMENT. I/WJ;", the$eUer(s} of tt'le above Property, agree
that thEl cpndi.tion of the private s~er system is ths.sBrne. as..notedabpve.. incll,lqiQg.changes lndicCltecj aboV9.whlch have been
initialed and dated.
77.
(5811$') Dennis Allan Cline
(Date)
CSllU"r) Carol L\..Cline
(Dale)
78.
ORIGINAL C.OPVTO LISTING BROKER; COPIeS TO.SELLER, BUYEFl,SELLINGBROKER
01/23/2004 15:.16 FAX 763 493 5.193
JENSEN & SONDRALL. . P . A .
, CN.ii C!i
~\.J..LU
Schedule "An Legal Description
The. South. 100 feel of Lot 38, Auditor's Subdivisiou NUOlber 226, Hennepin County, Minnesota, according to thc pIal t.b.t..Tcof un
file ~nd of record in the office of-the RChristcT ot"Dceds, in !Iud for HeunepiuCounty, Minnesota, lixcepting therefrom
The West 7.0 feet of the following described tract:
South J 00 Teet ol'Lul 38, AuuilOr'S Subdivlsiou Number 22G, Hennepin County, Minnesota, except road_
01123/2004 15:16 FAX 763 493 5193
JENSEN&SONDRALL, P.A. ~GNl:l.-Cli
~V.l'
EXHI1UT "B"
'.' '. Cornpar.ble Comparable
Subject Comparable
property #1 property #2 Property #.3
,
Price (aDDrais.~d) $200,000 $216,775 $225,100 S227,610
- - 5841. Decatur ., 8801 30 > Avenue
Address 5400 Winnetka 6100 \iVil1Oetka
Avenue North Avenue North Avenue North North
City New HODe New Hope New Hope New Hope
Date of Inspection .
StYle Rambler Rambler Rambler Rambler
Construction Averaaeto Good Above Averaae Above Averaae Above Averaae
Actuiill Age/Eff.Aae 1950 1968 1960 1963
ConditiOl'l EGF Average Abo~Average Average Above Average
No. of Uriits 1 ~. 1 1 . 1
No. of Rooms 7 9 9 B
NO. of Bedrpoms 2 4 3 3
BedtOoms Reauired 2
No. of 8aths . 1.75 1.75 2 1.15
Above Ground 1,598 1.057 1.078 1.524
Finished sa ft
Below Ground 0 865 690 414
F=inished sa ft ...
Total Fil'lished Area 1.598 1,922 1,768 1,938
Biilsement CraWl Space Full __ finished Full - finished Full - finished
8smt.Types of Fin. NA family Room. Family Room. Amu.sement Rooln
Rms. Bedroom. Den Office. LaundfV
Heal/Cooling Gas FAI CA Gas FA J CA Gas FA/CA Gas FA/CA
Fireplaces One None Two One
Other. Finished Space 2 - sheds 1 - shed
Garage 1 - attached 2 -- attached 2 - attached 2 -attached
Lot Size 100x330 BOx137 75x125 85x125x76x125
33.000 sa ft 10960 sa ft 9.375 sa ft 10.060 sa ft
Neighborhood EIB . Suburban Suburban Suburban Suburban
Schools NA .'. NA NA NA
Public Transportation NA NA NA NA
Church NA NA . NA NA
place of Employment NA NA NA NA .
Water 1. Type 2. 1. City 1. City 1. City 1. City
Adeauate 2. Yes 2. Yes 2. Yes 2. Yes
Sewer 1. Type 2. 1. cily 1. City 1. City 1. City
Adeauate 2. Yes 2. Yes 2. Yes 2. Yes
Other Comments: - $3,000 .;.. garage -$3,000 - garage - $3,000 - garage
· These amounts + $13,525 - above + $13.000 - above + $1,850 ;.. above
round finished ground finished . ground finished
factored in to the - $8.650 - below -$6,900 - below - $4.140 - bel~
comparable price ground finished ground finished ground finished
+$10,000 __lot size + $10,000 -Iotsize + $10.000 -lot size
+ $2.000 -fireplace
PRICE DIFFERENTIAL PAYMENT I ANAL YSIS OF COMPARABLE PROPERTIES
Comparable Price
Project Price -
Difference
Estimated Moving Expenses
Estimated Closing Costs
Total Benefit
$216.775
$200.000
= $16.77~
+ $2,050
+ $4.500
= $23,325
R/W Agent Kari Klassen
Date
'>>h '~h ../
0112312004 15:12 FAX 763 493 5193
DoUGLAS J. DEBNER%
GORDONL. JENSENl
GLENA. NOR,TON
STEvEN A. SoNDRALL
STACY A. WOODS
OF COUNSEL
LORENS Q; BR,YNESTAD
'Real Property Law
Specialist Certifiecl By
The Minnesota Stale
Bar Assoelation
'Admitted in Iowa
SONDRALk" P.A. .... CNH-CH
Ie.J OU....
'" i""l"' 'C" /'
JENSEN &'SONDAAEL;P;A.
Attorneys At Law
8525 EDINBROOK CR()SSING~ STE. 201
BROOKLYN PARK, MINNESOTA 55443-1968
TELEPHONE (763) 424-8811- TELEFAX(763) 493-5193
e-mail law@jensen-sondrall.com
January 23,2004
VIA E-MAIL TO 'kdoresky@cl.new-hope.mn.us
AND BY REGULAR U.S. MAIL
Ken Doresky
Community Development Specialist
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re: EDA Resolution Approving Purchase Agreement/5400. Winnetka
Our File No.: 99.11300
Dear Ken:
As we discussed earlier today ,.pJeasefindencloseda proposed resolution approving the 5400
Winnetka purchase agreement with the Clines' and the purchase agreement. I will fax to you the
actual purchase agreement and the relocation analysis. They should be attached as exhibits A and
B to the resolution. SOfry this iscotning SO late in the_day.
Contact me if you bave any other question Of comments about this item.
Very truly yours,
Steven A. Sondrall, City Attorney.
City of New' Hope
JENSEN & SONDRALL, P.A.
saS@jensen-sondraU.COlD
After Hours Extension #J47
Enclosure(s)
cc: Valerie Leone
P:\A.ttorncy\SAS\2 City of New Hope\99-JJ300\K. Doresky letter resolution approving paS400 winnet!ca.doc
DOUGLAS J.DEBNER2
GORJ)ON L. JENSEN!
GLEN A. NORTON
STEVEN A. SONDRALL
STACY A.WOODS
OF COUNSEL
LORENSQ.BRYNESTAD
I Real Property Law
Specialist Certified By
The Minllesota Stale
Bar Association
oAdmilled in Iowa
JENSEN & SONDRALL,P.A.
Attorneys At Law
8$~5EpINBROOK CROSSING, STE.201
BROOKLYN PARK, MINNESOTA 55443-1968
TELEPHONE (763) 424-8811 . TELEFAX (763) 493-5193
e-mail law@jensen-sondrall.com
January 20, 2004
VIA E-MAIL TO kmcdonald@ci.new-bope.mn.us
AND BY REGULAR .u.S. MAIL
Kirk McDonald
Community Development Director
City of New Hope
4401 Xylon Avenue North
New Hope, MN55428
Re: Acquisition of 5400 Winnetka Avenue Nortb.(Cline)
Our File No.: 99.11300
Dear Kirk:
This letter is in follow up to the January 15, 2004 letter the City received from Kari Klassen of
Evergreen Land Services in connection with the EDA's acquisition of the property at 5400
Winnetka Avenue North....The owners of this property are Dennis and Carol Cline.
The Jamlary15thJetter indicates the Clines are seeking an additional $5,000.00 increase to the
$200,000.00 sale price of the property at 5400 Winnetka Avenue Northin light of the fact the EDA
will not be required to make a differential payment in connection with their relocation benefits. As
you know, the relocatiort.analysis estimatedadifferel1tial paymenfof $16,775.00 based on a
comparable price of a new home at $216, 775.00. The Clines are not receivingthis.paymentdue to
the fact the purchase price of their new property does not exceed our $200,000.00 acquisition cost
for their current property at 5400 Winnetka Avenue North. In other words, the EDA is saving
$16,775.00 due to the Cline's decision not to purchase a replacement property at a price equal to or
exceeding $216,775.00.
It is staffs position we should pay the additional $5,000.00. This is based on the fact the EDA will
also save another $1,500.00 in reimbursable appraisal fees if the Clines decide to have ari appraisal
prepared to support a request for a higher purchase price. Furthermore, if you review our own
appraisal, comparable number 1 supports a purchase price of $205,000.00 and comparable number
3 supports a purchase price of $202,000.00. Therefore, there appears to be support within our own
appraisal for an upward movement in the purchase price.
Thirdly, given the location of the 5400 Winnetka property in relation to other properties the EDA
now owns, it would be highly desirable to immediately acquire this property to assist our developer
with its proposed phased development plan. rn other words, immediately obtaining title to this
property would provide the developer with a significantly larger area of property we could
guarantee turning over to the developer by April 1, 2004.
Lastly, if the property owners did obtain a new appraisal, a fair market value could be established
in excess of $205,000.00.
-.....;;..~.._~...~
January 20, 2004
Page 2
Therefore, it appears to make sense to pay the Clines $205,000.00 for the acquisition of this property. Please contact
me if you would like for me to do anything further or if you need additional information concerning this matter,
Very truly yours,
Steven A. . SondraIl, City Attorney,
City of New Hope
JENSEN& SONDRALL, P.A.
sas@jensen-sondrall.com
After Hours Extension #147
cc: Ken Doresky [via e-mail only to kdoresky@ci.neW-hope.mn.us]
P:\AttomeyISAS\2 City of New Hope\99-11300199, 11300-00I-Kirk Ltr,doc
~jY
i '
January 15,2004
Ken Doresky
Community Development Specialist
City of New Hope
4401 Xylon Avenue North
NewHope, MN 55428
evergreen
LAND
SERVICES
CO MP ANY
Acquisition and
Relocation Specialists
,
l
f
i
f
i
~
I
Re:.5400 Winnetka Ave North, Dennis & Carol Cline.
Dear Ken:
As discussed earlier on the phone, Dennis and Carol Cline would like an
additional $5,000.00 for the price of their home. That would make the offer go
from the appraised value of $200,000.00 to $205,000.00.
The Cline's found a home in Champlin they are 'going to purchase for the price
of $200,000.00. The closing on their new home is scheduled for February 10,
2004. My comparable study was done and it was determined that their housing
differential payment would be $16,775.00. Since the Cline's purchased a house
at $200,000.00 instead of the $216,775.00, which is what the comparable price
is, they will not be. receiving any housing differential. payment from the City,
therefore in essence, "saving" the City $16,775.00. They will still receive
moving costs and closing costs from the City. Which will be approximately
$7,000.00.
4131 Old Sibley
Memorial. Highway
Suite 201
Eagan, MN 55122
651-882-0200
888-411-1134
Fax: 651-882-6564
If you have any questions or need any additional information, please contact me
at 651-882-0200.
Sincerely,
/{?uU' J(j~
Kari Klassen
Relocation Consultant
,..,.."...
'.",""",",
30120326
0~bS
ProJidirJg QuaJJtyAppraisals forllBsy Lellders
DATA SUMMARY
~ of New HOpelK. en. Doresky
1 Xylon Avenult N. .
New Hope,'MN 55428-4898
BOf'roWer: N/A
Client:
Address:
~WinnetkaAvenue North
New Hope, MN 55428
Value:
$200.000
Date:
Decernber 9, 2003
Appralsar: Gl'Itgory V. Callahan. Cert Resl Real Prop
Client
File: Cline
FORSYlIIE
APPRAlSALS,LLC
Forsythe
File: 30120326
222 EAST LITTl.E CANADA ROAD. ST. PAUL, MINNE;SOTA55117 (612).486-95501 FAX: (612)486-9732
Pro-O:=I;400Winnetka A~~~=~~: RESIDENTIA~~=:ALREPOR1 s..~ ~~NO ~u~~28
... Auditors Subd No 226 Lot 38B1k S 100 ft ex road . Cclunly HenneDln
~f>IrcoINo, 0511821330005 '.. . Tax V.... 2003 RE T_$ 1.31616 ~-..-s$ None
IlclmIwer N/A tAnNoItOwnor Cline Qennis& Carol Ocal""'" IX Owner lenan: ' 't'acan!
fXj ~s- .' .Illlllllehdd I P,,".c:IT- 1 P\JO .1 ~/IoUWAcm; HOAS None fMo
...-g;;;,;,;..NamjN/A .... .~~ 02-91CensusTrx! 5120-0215,02
~Pnc.$N/A DIIaof~NtA .n..mntIQll_h_nt~l(lan '. IONIIMl..... None
lendlt~CltVc)f New HODe!KenOores/(v ~>4401X\IIonAvenue N. New HODe MN5S428-4S98
~ Gr....orV. CaUahancertRf!!$IRealProo Acktress 222 Little Canada Road LittleCanadaMN55117
L.OClIl... >.. U1llIn X' SlII11l1l:1an'" W ~. ,. PftdonIin."1 , SI"lIt.family hOUS!."lI t _nt....a UM ",", !.Ana uM Ch."lI!-
8\Iil~p Xc:.r!~ F 25-... .7.~i ...;...I...u.n........ .m. .1 ~~y.. If:''ce ~~ lOne. la~ 60% ' ~ NoI~ _' llktl~
GoWtbllll. ~ ..I\apid' 1x$labiOj...,iSiCJw ... .,000wn0r ..... ~ Low ----1J2-4lamiy 5% ' o..-llnprcass .
= ~= i ~-~i~~ .~=P6"4> i 35~~.,m 65;:::. ~~~lToNotAoohcable
.........m. ~tMldir3...... ~"""',0vJt6__i_,...."" I . 180 ...' ~5 \ Vacant
N~:~.lIftdtn.rKllII~."tcJl\oftIHt~lIh~_not..pprsi..l_ors, . . '
tll!i9hboriloOdlloolndarift!lnd cUnlderis!iCsThesul:Jiect.'s neiahbOrtloodbOundaries are Brooklvn Part to the north. Golden Vallev to
thesOuthC~untuRd.81toth~ east arKf~iahWav169 to the west. This is an established area
FlIlIllll'$t"'lathdllltlllll!ktl.lbiilY\lfI"'P'1lf*llQlnl~....hboriloOd (pro.lllily to ~nl.nd alllllnll..s, .....oymenlsl.t>.lIy. ..-allo ......k~1. ale)
Winnetka Avenue isabusv residentialstreet.Counhf Rd. 10 aloeal traffic arteN IS within.1J4 and offers aecess 10
"SIlooo_vs.andrecreation. Prooertv. values have Peen increasina, . Demand for the
:~~~~~=~~::i~ri;:in~::s~iDhbOrhOod has no aooarenl adverse factors
1IilrDl. condiliolls i11ll1tlUbtM:ll!ei!lhllorh~("dQd~,I!'~~ l~, :~~jt~SIOll$ ..lad 10 lilt tnoncIoI property .-. _ndlsupply. and -ong .....
. 'IU~ lI$d!lla on ~i1i'1' P'1lf*llQfor;lIllia in!lMt .eighbOrhOOd; dll$Ctlplion.of lhe!'N..lanca 01 uies .nd hnanclng conClI$$Iona, etc,)
~~:~e$~bH!ct'S~~m...........:.....'~_..f........ ......... . ..,.'.... .~:~~;.. ..~::.:4~:t~'::.:~~....,.~n~~al~:::::I~::~~~i~~:~I~::"e IS
readilVavafrOma.varie SOU ichbenefitsboth Dmential buversand sellers,
.... .... ,.; . '..
INSlIlAnON
~Conc 00
Cftong Cone .. 00
.Wlllis. Cone . ~X'
Floor .QQnL
1::-
1 Concealed
01.... AnI. So.Ft.
o
1598
o
____~" . 7............ 2 I 0
1.1frERJOR......... ~ ..' --m' s 2 Bath/aI' 1598 s.....F...ofGlosslimoAlw
~ CntlCTNnI-AIIQ. :TlHGFA =QUIP,;::;::C AMENIllES CAR STORAGE:
. ..w. DNwall-Avn. FutI Gas RengWOqn ~ Slaia.- .... ::-S)'L-- ~ Haole 0
t~ Hardwood-A\#!. CandIilnAvo 0.,...... ~ bopStsr - 00cI< Yes ~ ~ '01...
e.tb Floor C. Tile-Ava c;ooUNG DiIIIRsIw X SadlIe X Q, 1 Car
flIIh~ C.Tile-Ava ... CeI*aI Yes FMtttood ~ Floor Q Porch ~ D1111Chtcl
~. Flusb-AveraDfl OIlJor. No. uc.-. ~........ : =- ~ =n
'.' . '.' .... . .~v~.. . FIIIiIhtcI "'i Dnwftav 1 W'd
~~ ............... "'*VY afIiciltnt __~): The subiAct has an averane efficien v cias forced air heatino sYStem. The I e
~norwa"s are.stuccoandWQO(j sidino cc:mstruction. SeeattaChedcamments for additional features. '
rt=~~n=:'='::=~=~.~~m=r~\~:e=~.:rtlCOflllNdcliOn "-"rk' bingladdil!O"s. el~.:. The subiect
. candifo d' _____1"'__ T . ..' '. . Ion an ma eta Ie as IS The Interior is in
'1 I n an IS aU......o!lIu. he fIOQr alan and size of the clwellinn are tvnical for the area See attached f Of
. lona comments. '., ..' .
:;:'=I::=(;::n~~~,,=:,tin=:nk~~d~::~=Sa:~) =n~~~'s=;:it":'Si~~~~itoOf in t1heh'
are..no adverse envIronmental conditions noted. rs. ere
___10 ...... .
. fo,oj.ecttnt--.lonforPUD. (1Iappl!C8~)...ls~"'~ider-incontrol of lilt tleI_ Own.,.' ".socislion (HOA)? U YES U NO
~latalltII"'ofUnilS in lilt IUbjac:I prDJed N1A '. . . ApprounIIelolal..._oIunils tor ul... t",subfKI proJ<<! NtA
~_ ....lMIlle and recraallonallaci~..: Not ADDlicable,
~100x330 . .... ..... ", .... .' ....' I Topography SIODes Gentlv
1ll~...A{)~tOx. 33000SCl.Ft. (pereoutlty[ '. .... ec-L.aI U Ves ~ No . SRI! Abv. Avo.133 OoOSF
liipllCliczoning cmailil::ation .nd ~lIon R-1Sinol~ FamilY Residential . SIlape Rectanoular
==:lI$~ .rJa,=:'-8~.za~,:-~~lIega1 u Nozonong ~ ~::~~:allAvo
Otili....PIibIiC' ohr Off.tIita............nts TrJIe PuIllIc: Prnta I.endal:spilg Twical
~ X 100 AMPCB sn.t ' . Bituminous 00... i er-y lilI"- ASDhalt
Gas ~ ClIrll/gullar Concrete 00 _ .' Appnn1 easements' Normal utilitv
WIl. x SidMIIIk.' . .......... Co. ncrete 00 _ 'FEMAs,.aaIAoodHaurdAlw U Vas txI No
Ssnitary- X SltMI.~Yes .~ ... FEMAZone "X" Map Date 3130101
SlClllll-lC ,... .. None I I,FEMAManNo 27053C-0192E
c::on.nenb (.P..... sdw_ easalMllls. e~lllt!Ila. ~.....-nI1, slide _so ihgaJ or.1 no~g lon..g. un. etc.): Improvements
fa~ west. LandScaDino is tvnicaLThe~ubiect has a residential view. It is above' averane in site size and land to value
.....0. TUi'tfcaleasements have been considered to estimate the market value
~IESCRIPTKlN EXlBlIOR~ FOIJNOAnOH '
~'dUnb . One FouIldalJOn Concrete Slab 100%
~,~$tories One &ttriorWala Wood/Stucc o.ISIBIl No
,~~~.JAIl) Detach ~s..-. Asbhalt e-.m None
~.cSlyle) Rambler Gull....oionapa. Metal' s....,Pun1>NJA
..~~ Ex.ist WindoowTrJIe CaseJDblHntl 0.....- N/A
~~) 53 Years SlonWSaMII$ Storms SeIliMnenl N/A
EIIIi:liN.... iY.. I 20 Years ".lI"'C*"'UI.u~ No InIeslalion N/A
· ~ ~ UIrinn IlinOxi KitdIIn DIn F....Rm Rc. Rm iladIooms
...... ".
~1 X 1 1
· ~'2
BAsEMENT
Atea SqFt NtA
-.FIlehtd NtA
c;;.mg Nt A
WIlls N/A
Floor Nt A
CluIaIIe EnIry N/A
2
'.Baths I lau......
I
I X
2
Mud
PAGE1OF2
.........Aa.......--m....-....-
Fane....,... 'fCIfM ...,
~
~.~
~-"'~;?';\~'''~;0'~~~t~1I~9l~~~f~,'~t-1t;~~~:
- -- --- - - . - - .
.
rESIDENTiAL. APPRAISAL. REPORl F... "'0 3012032t
~15.000! eo-nts on Cost Approach (such ... __ 01 cost .."....,.
I .... _. 1qIi_1ool........... and for HUD. VA .lId F1IlHA, '1M
i estllllltad -1IHIl!I--- tile of tINt poopeoty.
I The site value as vacant is based on market trends.
I Total economic lifecf 100 ""'.
I
j
o
0'" ,
UNIFORM R
Valuatton Section
ESJ1M4TEDSlT'EVALUE. . . . . . . . . . . . .. . . . ,.. . . . . .. .. S
ESJ1M4TEDREPRODUCTlQH COST~ OF IIIPRO\/EIIEKI':
lllNIing Sq.Ft CIS ~ "~s ; <, .
Sq. Fl-O S;;';,;,_r'-':';j.ti:-~~;::i:~<;"t-o~I?'<:' .:,;: {,Ai~l$,i{~irk:
~ _SIl.FI.@S_____
TcqlEsI_adCocl~ . .. . .. i
Less Physical ! Func:bonaI; EJtemaI
.~ I
OepreciIlad v.... rI................
'A,s.is. V...rlSil.I....,oo_nts. .. .. S NlA;
INDICATEDYALUE BYCO$T APPROACH .. ~ S i COMPARABLE NO.:> COMPARABLE NO. 3
ITEM I SUBJECT i. COMPARABlE NO. t 7819 60th Avenue N. 15621 Wisconsm Avenue
5400 Winnetka Avenue North 14733 BOone Avenue N.
Adcnss New Hal e INew Hone New Hone I New HaDe
-10511..... I An...rox. 3/4 Mile I Annrox. 1/2 Mile I AoniOx. 113 Mile
SaIeoPrice S NlA S 198600 $ 198000 $
I'Ii:lIoQossIM.Ma S 0.000 $ 154.190 $ 122.83 Il! 1$ 133.36 Ir
I MLSlC ty MLStCOUnty J MLSlCounty
Ii8la andIoo Inspection oun 17 Davs on Market 133 Da~ on Markel
VIliiclllian$Ounlas Countv Info. 15 Davs on Market T
VAUEAI1l.lS'IIIMS DESCRIPTION DESCRIPllON j ,(.)S_ DESCRIP110N ""$_ f DESCRIPllON ',.It_
SaIeocrFIIlIlICing NlA Conv/O Pts Conv/O Pts I Conv/O Pts
~ NlABvSeller Bv Seller I Bv Seller
D8t.rlSaItIr... NlA Clsd 5103 Clsd 4103 I CISd 10103
L~ Suburban Similar Neioh. ' Similar Neioh. ; I Similar Neiah.
~~~ FeeSimDle Fee SimDIe: Fee SimDle: Fee SimDle
$h 100)(330 83x125/lnf.: 10000 94d381lnf. : 10.000 7Sx1801/nt.
View . Residential Similar View - SimilarVI8W Similar View
10IIiIn....~ Rambler/Ava. RamblerJAvQ-. : Rarnbler/AvD_ : Rambler/Avn,
i ao-dOonllu:ti:ln Ava. to Good Similar Qualitv : Similar QualiiV : Similar Qualil\7
Me 53 'frs. 42 'fears' 43 'fears 52 'fears
Coftdtian- Ava Cond. Sun.:Cond. : -5000 S~ Cond~ :. ...5-000 SimilarCond. :
AboftGnlde r"" . _ _ T"" _ _: 1.500 _ _ _: 3.000 iT",,:_' eo.. :
RoomCount 2!i 7: 2: 2.00 a: 3: 1.50' -7: 3: 1.00- -I 7: 3: 2.00:
GralsL.......-.1 598 ~A. 1 28IfkR.: 7 SOO 1612 Sa.R. : I 1 511 Sa.A. -
. e-..t&FiiIhed None Full . -5.000 Part!3al'llge-2.500 Full
Raonas.-Grade NlA 625 Sa Ft Fin -6300 212 so Ft Fin -2 100 906 So Ft Fin '
'Fund.....tJlj; Averane.Util. Similar UtilliV : Similar Utilitv : Similar.Utilitv :
....~~ Gas FA ClAir Gas.FA ClAir : Gas FA ClAir : Gas FA ClAir :
· i~Etirlt.... Concealed . Unknown' .. Urlknown Unknown'
1 ".arGaraae 1 CarGaraoe : 2 Car Ganioe: -3 000 2 Car GaNIm' :
PQn;h. ....jg, 0Ic:k. ~ck Deck . ~ck, Porch , -2.000 None
FnIMoott' * 1Firenlace None . 2 000 None 2 000 None
F.a PcloI.* NlA NJA : NlA : N1A
Other SeCUrilv Svm. None : 1 000 None ; 1 000 None
NoI~ rXI+ r 1- '$ 6000 IXI+ Tl. '$ 1400 rXl+ r I. '$
~SIIIIPliat GIaa 19% GIaa 15% GIwa: 17.02%
rI Nlt 3% $ 204 600 I NIt: 1% $ 199 400 Nlt 0.05% s 201 600
Co'-tlIa on s-. ~ (~....bject PRlI*Iy'a ~ibliYtol.hIi MigIIborbood. eI.c. ): Room.count adiustments are included in
the GiAadiustment aniY. GLA adiustments are made usina $25 oer souare foot. Bath room adiustments are made
usinn'!l:3ooo MrfulJ bath and~1.500D9r 1/2 bath. Basement area adiustments aremade.usino$10 Derfinished
sauarefooL See attaChed infonnation foI' discussion of sales corriDarison adiustments,
= 0
=$ 0
Est. ~ Ecan. 1M.
=$ 0
=$
o
201.500
10000
2200
-5.000
-9 100
-3 000
2.000
2000
1000
100
ITEM SUBJECT , COMPARABlE NO: 1 COMPARABLE NO. :> COMPARABLE NO. 3
DM. Pri...ndDM NlA See Camp Sales Grid See Camps Sales Grid See Comp Sales Grid
s..-bpier'" NlA NlA NlA NlA
lIIIlil-rl........ NlA . MLSlCountvRecords MLSlCountvReCords MLSlCountvRecords
AMIyoiaaf *'Y-..-.. rI_. aptian. orlillilg rlthIi IIlbjoICI fIIlI*ly 8lld analr,lis. af *'Y pier'" rllIliIJod _-.--........ ,..rlthlidola 01........,.
PerlocalMLS listino infonnation and county records thE! suhiect has not been listed or transferred in the oast 36
months.
:~~'::~~~M.;t.i~'s"""" 'N/A'i.i.;.~~~~~" 'N1A .~:: 200 cog
lIIiI...... it..... ~..... . 0... ................. irIIpedi!Iacrallldlianalilled'" 0 IUIljed 10 ___..,... _........
CandIialIad...... This aDDniisal isbeina made "as is" This is a~ummarv ADDraisal Reoalt". No liabilitv is assumed
for the structural or mechanical eJ.ements of the om-rhf.
..~iIII.ReclanaliIIiDn: Indicated valuebv S8leseomoarison: $200 000. The sale cOmDarisanbest reflects the actions ofthe
~caJbll""r. Th'. e cost a..........Ch.W8S. considered but not co~. aDDficabJe.' therefore it was not included. The
Income8DDr08Ch was considered but not used due to limit~data. . .
TlNllIIIIPC*>af......... ilIlo........thlinMli VIiIMIafthli.... fIIlI*ly lhIt ilI......bjood rllhiINPOrl. __ on thIi..... _iona andlhe~ DblgInI
8lld limIilglllllllllillnl.8lld nMliftluadllilliDlllIIIt ..........III8chodI'Ndliou.cFcllm4ahnll.... Fcllm fOlM8(A1l1i11d 6/93 } .
1(IIIE)ar.Al'ETtEIIMKETYllWE.MDEFlNED.OFTtEI&L.............".1HATISTtEIUBJEl:TCFltISREPCRr.ASCF December 9 2003
. IWHlCHIlITtE~1EOF'" ECI...ANI)1HEEI'FECtIVE~1ECFTllSREPORJ)TOIIE$ 200.000 .
~ ~ 8UI'EiJIMIOlI'N""RI'l8ERfONLYFREQl.tR1D):
~,~~. ~;-hah. ~esl Real ProD =-
IlIIaAlDclr':SiaMd December 9.2003 DM
StUc.tIicIItiDn. 4002346 ... MN SIIIlec.tl'alian.
Or Slat. ......SIIIle Or SIlIla 1.icIMt.
Ollid OIlidNol
Insped I'laIIefty
--_1\1 ....
PAGE2OF2
,.......c.....-.aum'--........-
Forsythe Appraisals, LLC
SIIIle
SlIt.
-........... ...,
ADDENDUM
eomJWetNlA
. PrI:IDeIIVAcIclress: SfOO 'WInneIICa Awnue -
ave' 'NeW,HOi:wi
Lender:' 6tyof f<!eWHODeII(en 00reskY
File No :3012032f
case No
Stale. ,MN ZIp' 55428
ADDITIONAL FEATURES:
In addition, the subject has: an attaiched one car garage, central air. large deck. fireplace. security
system and ceiling fans..
CONDITION OF l1"IE IMPROVEMENTS:
The sUbjec:t is in mostly average oVE!rall .C()ndition. The s\Jbjed dOEjs have a new central air unit and
new kitChen floor. It also has new plumbing in kitchen and bath.
The liubjeethasbeen inspededforph~ical, functional, andextema~ inadequacies. The subject has
no apparent fundional or extemarobsolescence.
COMMENTS ON SALES COMPARiSON:
ComJ:larable one has a new bath and ne~ roof. It is considered superior in condition. It has 1.5 baths
vs the s1,lbjed two full baths and is' inferior in above 9rade room value. ..
Comparable two has a newer kitchen, and it is also considered superior in condition. It has one less
bath and is inferior in above grade rporn value. .
All compa~bles have smaller lotsand.areinferiorinsite value.
TRANSMITTAL LE'ry"ER:
~ ' , : ' ; : ' : I
The sUbjeetwa$ inspected on December9. 2003. The estimated market value as of December 9,
2003 (effeCti~edate), is $200,000.
The property~a~ appraised by Gregory Y.Callahan, Uc:ance Number 400f346, Certified Residential
Real Property~ppraiser. A certified resid"'l1~al real property appraiser-maYJlppraise residential
property or ag,!iClirltural property without regard to,transaction value or complexity.
: ': [I: , _ i ' i ' , ~ ": : :, ' : ~ '
This appraisalr~portis a "Summary Apprai$al Report". It conforms to the 1997 Uniform Standards of
Professional ~ppraisal Practice.
NoreSPOnS!bitityi has been assumed tor O1~ers'wtliCh are legal in nature, n9r has any opinion on
them beenrEmd~t8(j,otherthan ass\Jmjng!in~rketabletiUe, Liens andencul'\'lbrancesiif any, have
been disre{Jardlild ahd the property was appraised as though free of indebtedness.
Plea~ feel>ftee toea,1 us if you have a question.
ADDITIONAL CQMMENTS:
1. The purpose of the appraisal is to estima~e the market value of the subject property for litigation
pUq)Oses. ' .
"
2. The legal description of the ,subject Pl'OP'7rty can be found on page 1 of the 1004 form.
3. The reasona,b1e marketing period for the subject property is under 90 days:
4. According to the county and the MLS sys~m, the SUbjed property has not been transferred in the
past 36 months .' .
5. The sUl)je,ct property was inspected on 'December 9, 2003. the report was ~pared on December
9, 2003, the effective date of the appraisal i~ December 9, 2003.
6. The subject i~~n existing structure. This appraisal is made "as is."
7. Personal proP!ertY was not induded in the appraised value.
__,,-'<12
IlaI'nlMr: NlA
F!nllleflV AdCII'a$: 540ll wmetl<a A_ Hath
CIy: New Hope
Lender: CIIy 01 New Hope/I<en ecn.icy .
File No, 30120326
c.... No
SIlIle. ,MN ZIIl 55'2S
8. We have considered all three approaChes to value. The income'approach was not utilized due to
tack of reliable rental data of single family homes in thisneighbomood. The cost approach was
considered but not considered applicable, therefore it was not Included
9. The subject is a single family residential property. Revenues, expenses. and/or vacancies do not
apply.
10. Current and future employment or compensation is not contingent upon the reportmg of a
predetennined value or direction in value that fav.ors ,the cause of the clIent, the amount of the value
estimate, the attainment of a stipulated result or the occurrence of a subsequent event
11. This appraisal report was completed in confonnity with the Unifonn Standards of Professional
Appraisal Practice.
12. If the photos included in this appraisal are digitaVelectronicimages, they have not been enlarged,
enhanced, or altered in any way.
13',lf electronicldigital signatures are used, ithas been ruled ,acceptable appraisal practice by
USPAP.
14. The appraiser certified that if this appraisal indudedan e1ectronicldigital'signatureit is maintained
and controlled by the appraiser completing the report
GC
Addendoim PIve 2 of 2
N,orth
DIMENSION I..ISi kuUc:h......'..
File Ne' 30120326
Case No,: Cline
Z :55428
GROSS BUILDING AREA (GBA)
GROSS LIVING AREA (GLA)
Anra(s)
Area Measurements
M....u..m.nts
F.ctor
~ x' ~ .J.&Q. =
~'x ~ x..1.OQ
~X~'I~=
'. 19,00 x .8.00 x 1.00
~ x 12.00 x 1.00
_1_1._
J :1.-.
x' ________ x _
I--~X~
l~l_
J:_~
X_I_
X X _____
I '_ X ____
1_1-
X'_ 1_=
I~l_
I_l~
x_x_
X_I_
x~x
I_I-
X _ 'x --..:
.1_1_
-.1_'1_
_1'--.1_
x X
__ X __ X ""--'
_l_.l~
_,.,J: I
_x____x_
--1'_1_'
X X
x_x
x_x
I,_X_
~--I_I-
_ .1.---:..- x_
_X-~I_
~-I_I-
---.1'_ r =
_-x_~.J:_
x ---..;..... X ____
__x____x_
~--I__.I~
X~I_
I~X_
1_1'-
I_I_
X _____ I: ~
____x_x,_-=!
~I_I_=
~ J: '_____. X ~ =
Area
1.598
1.598
o
o
o
o
312
... of GBA
8366
, 83.66
0.00
o!oo
0.00
0.00
1 It 34
ToIIll
Area Type
'L....11 L.".12 Le...13 other' B_t. Gllnge
I,.
640 00
208.00
S~OO
152.00
312.00
-
l-!
,
~ ~
o
-...-.............................DMm
-
-
Q
u "
R ~
H "
H H
~/g
: ,
I
"""
W
I Borrower: N/A ' .'..,'" '.. " >,'.
Address: '5400 WinnelkaAvenue North
I City: New Hope St: MN
-L.
;,
,~~
,~ ,~/
~, 1....,irlr~~,.~
.' '~,-=r
;. <:. '~, 'f"~.'l.I-
.~~.~ 't~~:..
~:. to"
f
-
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I
\\ .;:.,
~t .'
"1:' "1' c'.., ,
,",,' t~" "
- :.' :~',~,
- L:. :iA\
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ZIP: 55428
rue,.....:. ..;)v I'V~.&:.~
Case No
lender elly of New HopefKert Doreskv
.....,~...,',J
. .7'~
. ~N
..
L..L.iu~
I;":. .
~
FRONT VIEW OF
SUBJECT PROPERTY
REAR VIEw OF
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AddresS: 5400Winnetka Avenue North
rCity.New.Ho~ St:. MN
Zip: 55428
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.Lender City of New Hope/Ken Doreskv
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COMPARABLE SALE #1
4733 Boone Avenue '"
New Hope
COMPARABLE SALE #2
7819 60th Avenue N.
New Hope
COMPARABLE SALE #3
5621 Wisconsin Avenue
New Hope
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222 EAST LITTLE CANADA ROAD, ST. PAUL, MINNESOTA 55117 (612) 486-9550 tFAX: (612)486-9732
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City-Owned Properties (1-6-04)
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1. 5340 Winnetka Ave. N.
2. 5406 Winnetka Ave. N.
3. 5410/12 Winnetka Ave."N.
4. 5420 Winnetka Ave. N.
5. 5422 Winnetka Ave. N.
6. 5500 Winnetka Ave. N.
7. 5506 Winnetka Ave. N.
8. 5518 Winnetka Ave. N.
9. 5524 Winnetka Ave. N.
10. 5532 Winnetka Ave. N.
11. 5550 Winnetka Ave. N.
12. 5520 Sumter Ave. N.
13. 5530 Sumter Ave. N.
14.5546 Sumter Ave. N.
15. 5559 Sumter Ave. N.
16. 7601 Bass Lake Road Ext.
17. 7603 Bass Lake Road Ext.
18. 7621 Bass Lake Road Ext.
19. 7801 Bass Lake Road
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Property Information Search by Street Address Result page
Search By:
Additio
HOUSE or BUILDING #:
I?~~O~
STREET NAME:
(at least first 3 characters)
(Winnetka AVe. N.
--~~-_._--~--. ~---"--------'
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He.nnepinCounty., MN
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Property Information Search Result
The Henn:;inc;~~iy-=P;;p~rlj;'T:;; ;~bd:i;;b~;iis updated
daily (Monday - Friday) at approximately 9: 15 p.m. (CST)
Parcel Data for Taxes Payable 2003
Click Here for State Copy of Payable 2003 Tax Statement
Vi~WM<lp.Iaxes Due 4 Pilyment OPtion~4
PropertylD:
Address:
Municipality:
School Dist:
Watershed:
SewerDist:
Owner Name:
Taxpayer Name
& Address:
05-118-21-33-0005
5400 WINNETKA AVE N
NEW HOPE
281
o
02
DACLlNE & C A CLINE
DENNIS A &,CAROL A CLINE
5400 WINNETKA AVE N
NEW HOPE MN 55428
Construction year: 1950
Parcel Size: 100 X ~
Most Current Sales Information
Sales prices are reported as listed on the Certificate of Real Estate Value an
warranted to represent arms-length transactions.
Sale Date: June, 1988
Sale Price: $77,800
Transaction Type: Warranty Deed
Addition Name:
Lot:
Block:
Metes & Bounds:
Tax Parcel Description
AUDITOR'S SUBD. NO. 226
03.8
S 100 FT EX ROAD
Abstract or Torrens: ABSTRACT
Value and Tax Summary for Taxes Payable 2003
Values Established by Assessor as of January 2, 200~
Estimated Market Value: $130,000
Limited Market Value: $102,500
Taxable Market Value: $102,500
Total Improvement Amount:
Total Net Tax: $1,316.16
http://www2.co.hennepin.nm.us/pms/addrresultjsp
12/24/03
Prqperty Information Search by Street Address Re.sul! page
Page2 012
Total Special Assessments:
Solid Waste Fee:
Total TaX:
$19.46
$1,335.62
Taxes Due I
Property Information Detail forT~~e~e~~able2003
Values Established by Assessora~ofJanu()ry2, 200~
Values:
LandMClrket
l3uilding M<;irket
Machinery Market
Total Market:
. $50,000
$80,000
Land Limited
Building Limited
Total Limited:
Qualifying Improvements
Classifications:
$130,000
$39,400
$63,100
$102,500
Property Type
Homestead Status
Relative Homestead
Agricultur<;il
Exempt Status
RESIDENTIAL
HOMESTEAD
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9035
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Copyright @1998 - 2001 Hennepin County
http://www2.co.hennepin.mn.us/pins/addrresult.jsp
12/24/03
EDA
REQUEST, FOR ACTION
Originating Department
Approved for Agenda
Agenda Section
Community Development
1 ~26-04
EDA
Item No.
By: Kirk McDonald, Director of CD
& Ken Doresky, CD Special.ist
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By:
RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 5440 WINNETKA
AVENUE NORTH (IMPROVEMENT PROJECT FILE 755)
REQUESTED ACTION
Staff recornmendsEDA approval of a resolution prepared' by the city attorney approving the purchase of
property located at 5440, Winnetka Avenue North for it's appraised value of $250,000 (private owner's
appraisal)anq relocation estimate of $26,250. The purchase agreement is expected to be executed by the
property owner by the time of tonight's meeting. Krass Monroe, the city financial/redevelopment consultant
recommends that the EDA now consider acquisitions of this type, instead of the City Council.
As directed by the Council aUhe. November 3, 2003, Work Session, staff will coordinate with Evergreen Land
Services, the city's relocation cOnsultant for payment of relocation benefits to all remaining sellers in the East
Winnetka Livable Communities Area. The city's purchase offer will now consist of the appraised value and a
relocation payment determined by the city's relocation consultant. The relocation estimate Of $56,250 for this
property is attached as Exhibit B to the purchase agreement, but will be adjusted when the property owner
moves and completes the purchase of another property.(actual closing costs will be used proportionate to the
purchase price of the subject property). Evergreen Land Services stated that the relocation costfor this home
is unusually high due to the subject in relation to comparable properties.
POLICY/PAST PRACTICE
City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within
the city. The City Council has been addressing the residential portion of this goal through the city's many
housing activities, including acquiring property in areas designated for redevelopment in the Comprehensive
Plan.
BACKGROUND
On January 12,2003, the EDA tabled consideration of this item until tonight's meeting. The property owner
requested that the purchase agreement reflect the amount of their appraisal ($250,000) rather than the city's
appraisal ($220,000). The owner is seeking to get additional dollars up front at the closing ratherthan waiting
until the relocation payment is completed. Per the property owner's request, the city attorney has updated the
purchase agreement. The, final amount paid to the property owner, including purchase price and relocation
MOTION BY
~
SECOND BY
TO:
1:\RFA\PLANNING\Housin \$440\0 -,5440 Purchase A reement 2.doc
Request for Action
Page 2
1-26-04
Benefits, remains unchanged. Steve Carlson from Evergreen Land Services, the city's relocation consultant,
will be in attendance at the meeting to answer any questions related to the relocation payment.
On October 13, 2003, the Council>authoritedstafftonegotiate the purchase of the subJ~ctpropertY.The
owner stated that they were completing a separate appraisal and would contact us in the future to schedule al
meeting. On December 12, staff, the City Attorney and Evergreen Land Services met with the owners tq
discuss negotiation.
On September 22, the Council authorized staff to obtain an appraisal of the subjectproperty. The city receiveq
correspondence dated September 10, 2003 frOm the property owner requesting th,at the city consider
purchasing the subject property. The property is ,located within the Livable Communities East Winnetka Study
Area and in Planning District 6.
Staff recommends approval of the attached resolution.
FUNDING:
The subject Property is located in an area where 11F funds can be expended. TIF funds would be used fo~
property acquisition, relocation and associated 'holding costs. During the '2003 State Legislative Special
Session, the city's TIF special legislation was passed. In December 2003, the district was ,approved by theCit~
Council. i
ATTACHMENTS
. Resolution
. City Attorney Correspohdence, -:5-04 and 1-22-04
. Purchase Agreement
· Appraisal - Property Owner's Appraisal
Provided in October 23, 2003 Council Packet:
. Appraisal
· Property Owner Correspondence" 9-10-03
· Location Map
· Topographic Map
· Section Map
· Planning District 6 - City Ownership Map
· Property Owner Correspondence, 9-10-03
· Hennepin County Parcel Data
· Comprehensive Plan References- Planning District 6
"~. "",",""" ".....
E])ARESOtufiON
RESOLUTION NO, 04 -
RESOLUTION APPROVING PURCHASE AGREEMENT
AND RELOCATION BENEFITS
5440 Winnetka Avenue North
BE IT RESOLVED, by the Board of the Economic Development Authority in and for
the City of New Hope as follows:
WHEREAS, the New Hope City staff has been in contact with Martha C. Arens, trustee
of the Arens Family Trust ("Owners"), owners .ofcertain real estate known as 5440 Winnetka
Avenue North (the "Property"); and
WHEREAS, appraisers hired by the New Hope EDA valued the Property at $220,000.00
as of September 30, 2003, and the appraiser hired by the Owners valued the property at
$250,000.00 as of November 4, 2003; and
WHEREAS, Owners are willing to sell the Property to the EDA for, the sum of
$250,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and
incorporated herein by reference; and
WHEREAS, the EDAherbyapproves the agreement with the understanding relocation
assistance benefits will be paid to Owners as required by both State and Federal law; and
WHEREAS, the City Staff has employed the service of Evergreen Land Services
Company to provide the required relocation assistance; and
WHEREAS, Evergreen has prepared a relocation analysis for the Owners herein and
have determined the estimated relocation benefit payable to Owners is $56,250.00 (analysis
attached as Exhibit · B) based on the EDA's$220,000.00 September 30, 2003,. appraisal.
However, this benefit will be reduced to $26,250.00 if the Owners' appraised value for the
property is used. The final actual costs for the relocation benefits Owners are entitled to will be
determined when Owners actual closing costs and moving expenses are determined by Evergreen
Land Services Company; and
WHEREAS, the EDA has approved the acquisition of this property at the Owners
$250,000.00 appraised value primarily based on the fact the differential payment due the Owners
under the relocation analysis will be reduced accordingly by $30,000.00 reducing the payable
relocation benefits to $26,250.00 and rendering the total payment to the Owners for acquisition
and relocation the same price regardless of which appraised value for the property is used; and
WHEREAS, it is in the best interest of the EDA to purchase the Property from the Arens
Family Trust for the sum of $250,000.00, with other terms and conditions as set forth in the
Purchase Agreement and to pay the reduced relocation benefits based on the ED A's willingness
to pay a higher fair market value for the property based on the Owners' November 4, 2003
appraisal.
NOW, THEREFORE, BElT RESOLVED by the City Council of the City of New
Hope as follows:
1. The above recitalsareincorporated herein by reference.
2. The purchase oftheProperty by the City from the Arens Family Trust for the sum
of $250,000.00, with other terms and conditions as set forth in the Purchase
Agreement attached hereto as E:mibit 1-\, is approved.
3. The relocation benefit estimated to be $26,250.00 is hereby approved with the
final amount to be determined by Evergreen Land Services Company after actual
moving costs and closing casts are determined by Evergreen.
4. The President, Executive Director and New Hope' City staff area1.1thonzed and
directed to sign allappropnate documents, and to take whatever additional actions
are necessary ordesirable, to complete the purchase of the Property in accordance
with said Purchase Agreement.
Dated the 26th day of January, 2004.
W. Peter Enck, President
Attest:
Daniel J..Donahue, Executive Director
DoL'GLAS 1. DEB1'."ER'
GORDa\" L.1E.'iSE";
Gu\" A. NORTO\"
Sn:VE\" A. SO~'iDRAll
STACY A. WOODS
JENSEN &. SONDRALL,P.A.
Att(Jl7leys AI Law 8515 f;m'~RoOK CROSS"G. Sn:, 101
BROOKLY1'\ P.-\RK.l\IJ'''''ESOTA 55+J3-1~Mi
TELEPHO'"'E (763) 42~-8811 . TELEF.n (763 1493-5 J 1,1,'
e-mail .Iaw@jensen-sondrall.(.om
January 5. 2004
OF COL'.'iSEL
LoRE\"S Q. BRY1'."E.STAD
Ken Doresky
Corrununity Development Specialist
City of New Hope
4401 Xylon A venue North
New Hope, MN55428
Re: Acquisition of5440 Winnetka A venue North
Our File No.: 99.11292
Dear Ken:
Please find enclosed for consideration at the January 12, 2004 council meeting. a
proposed Resolution Approving Purchase Agreement and Relocation Benefits for
the. acquisition of Property al5440Winnetka A venue North. As you know. this
property is owned by Manha C, Arens as, trustee for the Arens Family Trust.
Also enclosed are three copies of the Minnesota Standard Residential Purchase
Agreement with Addenda which should be signed by Martha C. Arens prior to
the January 12th meeting.
In connection' with the Purchase Agreement, the Seller needs to sign' the Purchase
Agreement at the designated locations. Also, on the Lead-Based Paint
Addendum,the Seller needs to initial both lines indicating she is not aWare of any
lead-based paint and/or lead-based paint hazards in the house, or thar she has
received reports or records pertaining to lead-based paintsinth'e house.
Regarding. the Private Sewer System Disclosure Addendum, the Seller is also
indicating that she is not aWare of any private sewer system located on the
property. ,This is indicated by a check marked in Line 30 of said Addendum.
Pl<ll$~lravehersign and initiaJall three copies of the Purt:hase . Agreemem and
Addellda. Aftersald documents are sigIJed by the City, I would like a fully
signed copy of the Agreement for my file.
'Rea; Pro~i'ty Law S~ia4st
C~nlflcd By l1r
1\1 LiUk:'foOta Stolle Bar
A'Io!ol)(.'13tlOn
:AorruuC'u U) Iowa
January 5. 2004
Page 2
Please contaclme iryou have any quesnons or additions to the Resolution or Purchase Agreemem
relating to this matter.
Very truly yours,
~
- ---
Steven A. Sondrall, City Attorney.
City of New Hope
JENSEN &SONDRALL, P.A.
sas@)ensen-sondrall.com
After Hours EXEenslon #147
cc: Valerie Leone (w/encls.)
p, 'Aao""'YISAS\l.fttm\CNH99_11292-OOI.Ken Lu.doc
DoUGLAS J. DEBNER2
GoRDONL. JENSEN1
GLEN A. NORTON
STEVENA. SONDRALL
STACY A. WOODS
OF COUNSEL
LoRENS Q. BRYNESTAD
'Real Prop~rly Law
Speeiatisl,Certified By
The Minnesota State
Bar Association
'Admitted in Iowa
JENSEN & SONDRALL, P.A.
Attorneys At Law
8525 EDINBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1968
TELEPJlONE (763) 424-8811 . TELEFAX (763) 493-5193
e-mail law@jensen-sondrall.com
January 22, 2004
VIA E-MAIL TOkdoresky@ci,new-hope.mn.us
AND BY REGULAR U.S. MAIL
Ken Doresky
Community Development. Specialist
City of New Hope
4401 Xylon A venue North
New Hope.MN 55428
Re: Acquisition of S440WinnetkalRevised PA (Arens)
Our FileNo.: 99.11292
Dear Ken:
Enclosed, are 3 original revised purchase agreements in connectioh with the referenced property.
The purchase~greement has been changed to reflect the increased price, to $250.000.00. As we
have discussed. the, Seller needs to understand the differential payment under the relocation
henefitanalysis will he reduced accordingly. In other words, this means a $30,000.00 reduction
in said benefit.
Further, I have changed the Private Sewer System Disclosure addendum. The Seller will need to
fill out lines 33 thro1.Jgh 66 of said addendum as best she can. A locatioomapofthe system needs
to be provided as well. Again, have her prepare it to the best of her ability.. Accuracy will not be
that important regarding this map. P
The closing date has been left blank. Have the oWher insert the April 16. 2004 date online 43 of
the Purchase Agreement and initial the inclusion. Asa point of information,. the closing costs she
will need to pay on tl1e,sale of this property are as follows:
1. Abstracting an~name search fees (commitment for title insurance)
2. State Deed tax
3. real estate adjustments
4. any applicable recording fees
These fees are typically between $1.000.00 to $1.500.00.
As you know, relocation benefits are payable' separate from this closing, and will usually be paid
several weeks after the closing date on this property. I will 'defer to our. relocation expert to assist
the Seller on answering questions in connection with the payment of these benefits.
January 22,2004
Page 2
Please contact me ' if you ,have any questions or cOIllIl1eIlts.inCOnnection with the purchase agreements enclosed.
Very truly yours;
S2:-~~
StevenA. SondraU, City Attorney,
City of New Hope
JENSEN & SONDRALL, P.A.
sas@jensen-sondrall;com
After Hours Extension #147
Enclosure(s)
P:\Attomey\SAS\2 City of New Hope\99-11292\Ken Itr revised PA.doc
"T""",~
-
fStrikeone:] ~~>>K_~)f~ / SELLER SHALL PAY ON DATE OF CLOSING
all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing.
[Strike one:] d(j)6;1()'JAIOU'af~ / SELLER SHALl PAY ON DATE OF CLOSING all other special assessments levied as of the
date of this Purchase Agreement.
[Sfrike one:] ~~ / SElleR SHALL PROVIDE FOR f>AYMENT OF special assessments pending as of the date of
this Purchase Agreement for improvements that have been ordered by the City Council or other governmental assessing authonties. (Seller's
provision for payment shall be by payment into escrow of 1'112 times the estimated amount of the assessments. I As of the dale of th,"
Purcha$6 Agreement, Seller represents that Seller has not received a Notice of Hearing of a new public Improvement project from an',
governmental assessing authonly, the costs of which project may be assessed against the real property. If a special assessment becomes
:n pending lifter the date ofthis Purchase Agreement and before the Date of Closing,Buyer may, at Buyer's option:
78 A. Assume payment of the pending special assessment without adjustment to the purchase pnceof the real property; or,
79 B. Require Seller to pay the pending special assessment (or escrow fat paymem of same as proy/ded above) and Buyer shall pay a Commen"
80 $Orate increase inlhe purchase price of the real property, which increasesl1aU be lhe sa(Tle as the estimated amount of the assessment;
81 C. or Declare lhis PUrchase Agreement void by notice ,to $eller. and earnest money shall be retundedto Buyer.
i ,', BIT "A"
I EXHI. , . I>.1.S.B.A Real PrODer", For", !I,,'
,~.':-.:. ~~~~li;;;;;'~';;:;~"~URCHASE.AGRE'~E1i;G""M'" .."" ,
II '. hl199619972oo2 by Minnesota State BarASsociabon. Minneapolis, Minnesota , 'T' ' ,_~
:Ec;,oJ~ YOU USE OR SIGNTHtS CONTRACT, YOU SHOULD CONSULT WITH A LAWYER. TO DETERMINE THA THIS CONTRM~
i ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. Minnesota State Bar Association disclaims any hablllty ansmg out of tne use of thiS jorrr~ ~ _.
' 1 1. PARTIES. This Purchase Agreement is made on , .' __~_. O'an~ "e!\';~
Martha C" Are", TnJsrf"e' The" Are", F:1mii: Trust ______,:\lJrl3l(lCa1U3D:lI);..\...\.;.\..\..\..'\...\..\..\..::~\..\..:.\...\..:.:\.\
~ ,of {seller's address] ~440 WmnetkaAYrnuUQ.lth...1'-it\.Uiop~:<'linne.>.Qt.J..iS4.2S._ .__ . . ~ ~~'-~o,'"" .
the City of New Hope a Minnesota mllniclpal cOQ)oT':"",n , ~O(O(laC3(1ts [Slnke lOlnt lenan,s ,f tenan" .'n.,.:":~,
~ is intended) of [buyer's address] 440 t X rlon A \'em.l.e:..l'ill.nh.l'i.~;LHap;:...~ola..i542S_ to, '~,"
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25 water softeners. bllill-indishwashers. garbage disposals, built-in traSh Compactors. bUilt-in ovens and cooking stoves. hOOd-fans, ,"Iercom,
26 installed carpeting, ,work benches, security systems. and also the following property; _~..__...
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32 5. PRICE AND TERMS. The price for the real and personal Property,ihcfuded in this sale is ~nrem;.:IhQus.and. and OOllOO
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34 Dollars {$250 000 00
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36 Earnest money of $
37 {selecr cine:]
:. ~' .~, ::::~s~:;::,:S,~~:~,d si t :ab,,:d~~:~ri~a;~ :~ l' : ~ s c:s7~;~~n7:;d~~:r~::i~: fu,n ds) pending cioslng,
40 SeIler's broker. to be deposiled or held by broker aCCOrding to \he requirements of Minnesota Statutes.
41 OIherfdescribe howfhe earnest money will be held] '_~_"__.' '_
42 .. _______
43 receipt of which is hereby acknowledged and $ 25000000 cash. on , the DATE OF CLOSING. and
44 the balance of $ Q 00 by financing as shOWn on the attached Financing Addendum.
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2. OFFER/ACCEPTANCE. Buyer offers to purchase and Seller agrees to sell real property legally desC"Ded as. ,_ . ._
North '70 ff'rl of Snuth ,520 ,ff'''' of I. nt..J8...AudiI.f:lLiSUbd.iri.siouLlmbr.r..ll6...HtnncpiaCount)-. -'linneSOla.
0'-118-"1-11-001'
5440 Winnetka Avenue Nonh . CrtyOf
HeQnepin . StateofMinnesota. Zip Code 5~428
Ne\LHOIl<L...._
3. ACCEPTANCE DEADLINE. The acceptance date of this PurChase Agreement is the date ,t is deilvered Oy thelas! Dart\' s19n1n9 to the Othf"
party. This otter to purchase. unless accepted sooner, shalt be VOId at 11 :59 A.M.. on [dateJ_ ~ .. Apnl . ~UU4
and in such event alt earnest money shalt be refundecj to Buyer.
4. PERSONAl PROPERTY AND FIXTURES INCLUDED IN SALE. Tile following i,terns of personal property and fixtures owneD by Seller
and correntiy located on the real property are included in this sale [Strike out items not included]: garden bulbs plants. shrubs, trees. storr'
wlndowsand inserts, ,storm doors, screens, a"(nings, window shades. blinds. curlaln-traverse-drapery roos, attaChed IIghllng fixtures Wit"
bulbs. plumbing fixllltes, sump pumps, water heaters, heating systems, heating stoves. fireplace Inserts, fireplace doors an,d screens OUlI",r
humidifiers. buill-in air Conditioning units. built.in electroniC air f,lIers, automatic garage door openers wrth controls. teleVISion antennas
Upon delivery of \he Deed. Seller shall also deliver a Warranty Bill Of Sale for the above personal property. It;;heck thelJox It rhe fOJIOWIfI'l
provision applies to this Pwchase Agreement:! 0 Seller shall use M.S.B.A. Real Property Form No. 90 (1997). Warranty Bill of Sal~
), which Buyer shalt pay as follows:
000
by [EJtSlJl; J:NID!<, lIIlDXE - state which]
payable to
WarrantY..Oeed.. IO/fief!
MillerlOavis CQ..,SlPaul. M/ll-Form,1300 (1994: Rev. 1996: Rev. 1997: Rev. 2002)
MinnesOta Standard Residential PurcI1aseAgreement
82 {Strikeone:j MXGEO$X<<DCA$~1 ,SELLER $HAl.L PAy.oN DATE .oF SLOSfNG any deferred real estate taxes (lncluolng "Gre..,'
83 Acres. taxes under Minn. Stat. 27:3.111) ors!iElcial"assessmentspayment of whICh 'S reqUIred as a result of the clOSing ot thiS sale
84 Buyer shall pay real ,estate taxes due and payable in the year follOWIng clOSing and thereafter and any unpaid speCial assessments pavable
85 lherewith and thereafter. . the payment of .",.t1iChiS n.ot plhl1lW1Se proVldEKl herein. Seller (I1akes no representation concerning the amount of tuture
86 real estate taxes or of tu1ure special assessments. " ,
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98 10. CONDITION OF PROPERTY.
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M.S.B.A. Real Property Form Nc' 1
PURCHASE AGREEMENT I PAGE 2
8. DAMAGES TO REAL,PROPERTy.lt the real property IS substantially damagedpnor to ClOSing. th,s Purchase Agreement shall term,nat,
and 'the earnest,'rno.f1~Y: shall.;be ~:et~ndeq, t.~, ,~uYer;'.lf ,th~, real .'property Isdam~ged: materially but less than substantially prior to CJOSln:""Z
E3lJyer,may resci'1dtt1i~,.:furc~a~e,_~Q:~~ertle:'1t,by,;notlc~toSeneJ Within 21 ,days' a.her Selier notifIes Buyer Of such damage. durmg whIr!"';
21-d8Y period Buyer inay inspect the real prqperty. and in the "vent of such resciSSion. the earnest money shall be refunded to Buyer
9. SELI.ER'S, BOliNDAR'..lINE,1c:CES~.I'lE:Smlc:TlpNSANDLlEN WARRANTIES. Seller warranlS tnat buildings ,I an, ,are ent"e', w'tn,", ""
bouridarylines'of ~'real, propertY.s:eUer w~trants '~I~el~ a right,o_t,access 10 ~ ~al property from a public nght of way. Seller warrantsthatlhere has been nc ~a~,"'~
or mateOafh,lmishedto t~ real property for'~idl:J:la~ht ~s not ;~n made, Seller \VarrantsthaUhere are no present VIolations ot an~' resrnCllons relaflng to the U:-l~"-
imProvement :ot the real property_: Th~ warrantJe:s':~h~n~lJryive~. ct:hveryOf the Deed, or r:,ontTflct tor Deed
A."S!!iler warrants lha1.a1l appliances, fixtu<<1s. heatin{;j and air conditioning equipmeht. fireplaces (including mechantsms. dampers. fiues. and
doors), wiring. and plumbing used and IQCated on the real property will be in working order on the Dale of ClOSing. Seller Shall remove a:t
deOOl>. alld ,all personal property not inCluded in this salerrom the real property betore possessIon dale. Seller has no Knowledge of an,
Dutche/m diSease. oak ',vilt. or other disease of any ll"eeson the real property.
B. Sel~ knows of no, Hazardous substances or petrClleu!)l prOducts Having been placed. stored. or released ITom or on the real property by an,
person in violation ,of any law. nor of any undergro~n<j storag<!tanks'l1aving been IQCated on Ihe real property at any t'me. except as tollows.
C. Sellers~rranties and representations contained in this paragrapH 10 shaU~urlliV~ the delivery 01 the Deed or Contract for Deed. Any action
based upon these warranties and representations must be commenced within two years after the date on which the buyer Closed on the
purchase of lhe real property.
D. Buyer shall have lhe right to have inspections of the property conducted prior to Closing. Unless required by local ordinance or lending
regUlations. Seller does not pl",n to have th!! property inspected.
E. Statutory Disclosure. Pursuant to Minnesota Statutes sections 513.52 '513.60 (effective January 1. 2003); Seller must provide a wnlten
disclos\lre [see (1) below]. Or Buyer must have received an inspectiOh report, (see (2) below). or Buyer and Seller may waive the wrlllen
disclosure requirements [see (3) belOW).
Minnesota Statutes Section 513.57, Subd. 2. L1A.BILlTY.A seller who fails 10 make a disclosure as required by secllons 513.52 10513.00 and "0$ aware nt
the condition of the_ teal property-is liable: to the prospective buyer, A person injured bya VIOlation of thIS section may bnng a ci....ll action and rel~O\L'1
damages and rece1veotherequitable relief as detenninedbythe court An action under this subdivision must be commenced withmtwn years 3fter the d~(c.'
on which the prospective buyer closed the purchase or transfer of the real propeny,
~/ect only one of these three:)
U (1) Seiler's Disclosure. Seller has providEKl a written disclosure to Buyer. A copy of Seller's disclosure is attached. Seller shall correct in
writing any inaccuracies in lhe disClosure as soon as reasonably possible before Closing. .
Minnesota Statutes Section 513.55. GENERAL DISCLOSURE REQUIREMENTS.
Subdivision I. CON1'eNTS.
(a) Before signing an agreement to sel! or transfer residenlialreal, pro~. the ~I!er shall make, a WOllen disclosure to the prospective bu}er lh-
~jsclosure, must include all material facrs'Pertaining to adverse physical conditions In the property of which the ,seHer IS aVo.are Ihat could ad\t'r3l..'ly ,Jl111
significantly affect:
(t) an ordinary buyer's use ,,!,d enjoyment of the propeny; Ot. ;
(2) any intended use of the pro~ of which the seller is aware.
(b)ilIe disClosuremusl be made in good faith and based upon the best Of the seller's knowledge at the 'ime of the disclosure.
Minnesota Statutes Seetion 513.58. AMENDMENT TO DISCLOSURE.
Subdivision 1. NOnCE. A,sell~mu~t 'notifythe:pro$~tive buy~r.inwriting as ,soon.,as reasonably possible, bUI in any'event before clOSing. if the selicl
learns that the seller's disclosure reqUired by section 513.55 was inaccurate.
Subdivision 2. FAILURE TO NOTIFY; LIABILITY. A seller who fails to notify 'he prospective buyer of any amendments to ,he ImlJal disclosure requlrcd
under'subdivision l' i~ liable to the prospec:tive ~uyeras provided in section 5 I 3.57.
(2) Il1$pection Report. Buyer has receiVed~n inspectionrepor! by a qualified third-party. It a copy of the inspection report is proVIded to
Seller, Seller shall disClose t?Buyer material factS known to Seller that contradict any information In the inspection report,
Minnesota Statutes Section 513.56 Sub<!. 3. INSPECTIONS.
(a) Except as provided in paragraph (b). a seller is n.ot required tod.sclose information reialing to the physicai condlllon of the real propeny if a WT/llen
report that discloses theinfonnation has been prepared by a qualified third pany and provided.[o the prospec'ive buyer. For purposes of thIS paragraph.
"quaJ~fiCcl third party" ~sa federal. state. orlocalgovemme~taI agency,or any pers~n whom the seller. or prospective'buyer, reasonably bellC;:\'cs h~~
theex~cnecessaryto meet theind~try stlndardsofpractice for the type of inspectIon or ~nvestlgatlon that has been conducted by the thIrd p.any H1
order to prepare the written report.
(b)AseUershall disclose to the pnispective 'buyer material factS known by the seller that contradict any:information included in a written report under
paragraph (a) ifa copy of the repon is provided to the seller
Mil1l1C$ot4 Sranltes Section' 513.60: WAIVER. The written disclosure:, rc;quired under sections 513.52 to 513.60 may be waived if the seller and the
prospective buyer agree in writing. .~ajver,orthe~sclosurerequiredunder,sectionsS13.52 t0513.60 does not waive. limit. or abridge any obligatIOn lor
seller disclosure created by any other law. .
Seller and Buyer waive the written disclosure required under sections 513;52 to 513.60.
SELLER'
Martha C. Arens, TruSlee,The Arens FllI1Jily Trust
BUYER'
W. Peter Enck, Mayor, Ciry of New Hope
SELLER:
BUYER:
Daniel 1. Donahue, City Manager. City of New Hope
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'-", '-.', ,'i:::0;ij,::toA;;P~;t~Tt~~?:;w~,t~tr~' "'%:'~;::':~-~t1?" '_d1"~"
';' ,-,~'- :, ','
~'..{":~ '
"'\",',';;.;'
:,t,1;J
MiHerlDavis CO.. SI. Paul.MN-Fonn 1300 . .....v (1994; Rev. 1996; Rev. 19S7; Rev. 2002)
Minnesota Standard Residenti.a~p,~~~a~~~~(t~f,\%}/;,.. ,... .... '.' .'
174 Other thi.n the warranties~~a.~~;~~tk~;;;';~d~i~ this paragraph 10.. !he property is being sold "AS IS" WIth no express or Impilec
175 representations or warranties by Seller as to physical conditions. quality of construction. workmanship. or fitness for any particular purpose. (ThIS
176 paragraph is notintended to waive or limit any provisions of Minn. Stat.. Chapter 327A.)
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236 1S.MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota.
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M.S.B.A. Real Property Form No.1
PURCHAS~AGR~EMENT!PAGE3
11. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authonty as to Violation ot an, la\\. orctmarce "
regulation affecting the real property. If the real property is subject to restrictive covenants. Seifer has not received any notice from any oerse" 35
toa breach of the t:Ovenants, Seller has not received any notice from any governmental authonry concerning anv emInent oomaln. conoemnat:C':.
special taxing district. or rezoning proceedmgs.
12. TRUTH-IN-HOUSING. Buyer acknowledges receipt of the Truth-in.Housing DISclosure Report or other Inspection report if reqUlrec by the
municipality in which the real property is located.
13. POSSESSION. Seller shall deliver possession of tile property not later than the (;late of .~_ clOSing. Alllnleresl. fuel 011. liqUid petroleu,,"
gas and aU charges for city water, city sewer. electricity. and natural gas shall be prorated between the part,es as at the date of clOSlIl;:.
~fIIIIlliXdfXdlWtILXiX<IOOIXlXNl1l~m:~lIl'(,)(.=!Iilt~'O.\):Xtl'l~.\\
~~~liKNill<<~"U.I<lliiItU~_KlIitN1Il~_ti~'t1\i&~l<_J\~\
~~X-~l1IililXlW(~ltli/l'Jl,;l_!O>l~&:-B\"~~\
~~~~~~IIllI~-l!<ltlilCllii~KBlJllt}$.'U"'lidt~)lMlillAliM\~.l.\
~~~~l&lIlll1111Xdi;liIll1l\~~lllll)(~$ll1IOXllK!tl1lJlilllm(:liMH\Eli~~m.'l<\
ltlI<<~llll~X~ll&'OiU:lI111~~WMlIJt:>>KiXl!I'(tii~I!MtiUM.liIQOO(XlIi!ll/llltlllX.'roVlW<:IW(\
~~U~~WlJUQ~~_Xill~KHll~~lIlMlUh,{\
~~lilXlIIltM.XlUl!i~~~~~~Kl:i!ll\t.\:lI_XX\
~YDiKXXxxxxxxxxxxxxxxxxxxx * SEE ADDITIONAL TERMS
15. TITLE CORRECTIONS AND REMEDIES. SeUer shaU have 120 days from receipt of Buyer's written tiUeobjections 10 make litlemarkefable
Upon receipt of Buyer's tiUe objections. Seller shall, within ten (10) business days. notify Buyer of Seller's intention to make title marketable W,thll'
the 120 day period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow tram proceeds of closmg shall no!
delay the closing. Cure of the defects by Seller shall be reasonable. diltgent. and prompt. Pending correction oftitie. all payments req\lired here,o
<lndthe closing shall beposlponed.
A. If notice is given and SeUer makes titie marketable! then upon presentation to Buyer and proposed lender of documentallonestabltshing thai
tiUe has been made marketable, and if not objected to in the same time and manner as the ongmal title objections. the closmg shall take place
within ten (10) business days or on the scheduled closing date, whichever is fater.
B. If notice is given and Seller Proceeds in gOOd faith to make titie marketable but the 120 day period expires without title being lTlade marketable.
Buyer may declare this Purchase Agreement void by notice to .seller, neither party shaUbe liable for damages hereunder to th.e other. and
eamest money shall be refunded to Buyer.
C. II Seller does not give notice of intention to make tiUe marketable. or if notice is given but the. 120 day periOd expifes without title bell1g made
marketable due to Seller's failure to proceed In.gOOd faith, Buyer may seek. as permitted by law, one or more ofthe followmg:
1. Proceed to closIng without waiver or merger in the Peed of the objections to titie and without waiver of any remedies, and may:
(aJ Seek damages. costs. and reasonable lawyer's fees from Seller as permitted by law (damages Underth,S subparagraph (a) shall be
limited to !he cost of curing Objections to tiUe, and consequential damages are excluded); or
(bJ Undertak.e proceedings to correct the objections to tiUe;
2. Rescission of this Purchase Agreement by notice as provided herein, in which case the Purchase Agreement shall be null and void and all
earnest money paid shall be refunded to BUYer.
3. Damages from Seller together with costs and reasonable lawyer's fees. as permitted by law;
4. Specific performance within six months after such right of action arises.
D.1t title is ma!'ketable. or .is m2de marketable as provided herein. and Buyer defaults in any oftne agreements herem. Seller may elect either 01
.the following options. as permitted by law:
1. ;, CanceJ~is(X)fltJ'Btt as'provi~ by statute and retain' .all payments made hereunder as liquidated damages. The parties acknowledgelheir IntentIon that any note.
given pursuant to this contract is a down payment note; and may be presented for payment notwilhstandingcancellalion; .
2. Seek specific performance within six monthS alter suCh right of action arises. ir1(:/uding costs and <ea$Onable Iawyefs tees. as penn'lle<l by law
E. ,If title is ma~e. or is made marketable as provided herein. and Se!lerdefaul1S in any of the agreements herem, Buyer !T1ay. as pemutted by taw
1. ~k damages from Seller including costs and reasonable iawyer's fees;
2. Seek specific performance within six months after such right of action arises.
16. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at Paragraph 1 above and..
if mailed. are effective as of the dale of mailing.
17. SUBDIVISION OF LAND. If this sale constitutes or requires a subdivision 01 land owned by Seller. Seller shall pay ali subdiviSion expenses and
obtain all necessary govemmental approvals. Seller warrants that the legal description of the real property to be conveyed hasbeeh or Will be
approved for recording as of the Date of Closing.
1l1. WELL DISCLOSURE. [Check one of the fol/owing.]
~ Seller certifies that Seller does nol know of any wells on the real property.
.Y.. Wells Cln the real property are disclosed by Seller on the attached Well Disclosure form.
20. SEWAGE TREATMENT SYSTEM DISCLOSURE.
fChecj< eitherA or B:'
Y.. A. Sellet certifies that sewage generated at the property goes to a facility permitted by the Minnesota Pollution Conlfol Agency (lor
example. a city or municipal sewer system).
B. Seller certifies that sewage generated at fI1e property doeS nolgo to a facility permitted by the Minnesota Pollution Control Agency
and Seller's Disclosure of Individual Sewage Treatment System is attached (attach form):
[Check either C or D:'
C. Seller does not know if there is an abandoned individual sewage treatment system on the property.
~ D. S,eller knows that there Istfike one.] a~ I :*1""0 abandoned individual sewage treatment systems on the. property It Seifer
dlS~ the exIStence of a~ abandoned IndlVl~ual sewage treatment system on the property. then Minnesota law requires that the
location of the system be dISclosed to Buyer WIth a map. IAttach Sellers Disclosure of Individual Sewage TIe8rmenr Sysrem wilh map
cotrIpfererl./
21. lEAD PAINT DISCLOSURE. [Check of/eof the fallowing:'
S~ler represents that the dwelling.was constructed on !he real property in 1978 or later.
Z. Seller represents that the. dwelling was constructed on the teal property before 1978. (If such housing is located on the real prop- erty
attached and made a part of tIlis Purchase Agreement is "LEAD PAINT ADDENDUM FOR.HOUSING CONSTRUCTED BEFORE 1[;78-.) .
22. WET,LANDS,SHORELAND, AND FLOOD PLAIN CONCERNS. CurrenUy the law does not require Seller to disclos.e Seller's knowledge, if any.
of the eXIStence of wetlands. shoreland. or flOOd plain on or affecting the real property. If Buyer has not already inVestigated these
concerns. Buyer might want to Include Seller's disclos\lres regarding these concems. [Check the box if the following provisirm 0 ADDENDUM
. applIes to' thiS Purchase Agleement:}, , , '
:rOPURCHASE AGREEM~: WETlANDS. SHORELAND AND FLOOD PLAIN DISCLOSURE. M.S.B.A. Real Property Form No. 8 (1997) is
Included as an addendUm to thiS Purchase Agreement. . .
23.. SElLER'S AFFIDAVIT. At closing. Seller shall Supplemenl!he warranties and representations in this Purchase Agreemenl by executing and
dellvenng a Minnesota UOIfonn Conveyancing Blank [Form No. 116-M. 117-M, or 118-M) Affidavit of Seller.
Miller/Oavis Co.. St Paul, M~rm1~OO (1994; Rev. 1996; Rev. 1997: Rev. 2002) M.S.B.A. Real Property Form No '
Minnesota Standard Residential PurChase Agreeme~t PURCHASE AGREEMENT I PAGE 4
268 24. CLOSING. Closing shall beat the office of Seller's lawyer. Bwer'stitle .nsurer, or at some other mutually agreeable loca~on
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291 28. ~ULllPLE,ORIGINALS.Sellerand
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{State otfJeriocation:] New Hope Cil}' Hall 440 I X}'lon Avenue North New Hope Minne,ma "~'R.
Atclo~ing.Selletand E!uYE!rshall,disdo~etheirSocial Security Numbers or Federal Taxldentificabon Numbers for the purposes of COmpieM;
state and federal tax formS.
~.. ADDmONALTERMS;~O!LQLTIrtE---8.u}:eL.shalLJ:lbta.in..aL5el!er's eXpenst:. a Commitment fig .1:;
OWl'ler'~ Policy of Title In<urance <71l ~ current A I T A.fonn..issue.d.by.aJl;lJlSurerticensed to \\Tlle title msurance m MIIlllesot.:
Seller shall be, re<ponsihle for pa>'Tl1em' of Iho<e CO<I< ~'.J.lLp!epare.such_Coffil]lltment.. mdudmg..buI not lImHc'J Ic'
ah<tra~ting fee< name <earch fee< <e~icecharge< etc, BU'yer,shallp~y the premi.WILfOLtJ1e..01mer:s..Eolicy.of.Tnk lnsuran,';;,
~ll)'er shaH have ten (10) h"<iness d~safterreceipl of the Cnmminnent fQLIjtleJnsuranc.e...l.o.proude Seller with a copy ofth~
Comminnentand\Vritt~.~ ohlections~uyer s~allbe deel1)edtohave "'aivedllny ti1luJ.b.iections not made within thetmO (1) dJ\
petiodah?veel1~ept tJjat, ,this~haJJ ~or oP'7rate. as a, wlIiver of Sell\;r'<, covenant ,1o...d.elixer,a...statutory ,\\ arrant) Deed.unkss J
Wan1lntyDeerl i<not specifjed above 'f~llyer()btain' titl,.insllr~n~e Buyer i< nOUI'.a.tVllg.thuighl to_Qbtalll...ag.ood ,anJ
Q1;:lrkeravle titleofrecotrlfj-omSeHer ' .._.__.__..
Seller and RltYeracknowledg~ that the fill'n\lce ,Ircaler! on th~ second floor of the building..c.onstrum'd..on thc.rcaLpropeny is 1101
:inwo",ing':o~rier .
>:',"':'" .:""';", ,,"- -': ", '-.-:: ':',"":' .;.:,",' :,' "-';'.-"':"-'--;,,- ';',:..: ',., ': ',' :'," "'::- ':".'
:< 'i"':,,'.... ,': ,,"'::::'.' ",",."":,;,':':,:,,',,._.:., ',' ,," " _",' "~',i'
26.: ADDENDA. Attached are ~. addenda which are made a part,of this PurChase Agreement.
Purchase Agreement.
297 THIS /SA LEGALLY BINOING CONTRACT. BEFORESIGNING.CONsutT A LAWYER. Minnesota law permils licensed real estale
298 brokers and sales agents to prepare purchase~gr"llr11enlo;' . No~ec;ofl1fl1e"l,l,!lion ,or ,.presentation may be made by any real estate
299 bl'Clker or sales,agenl as to lhe legal sUffic;iellc;y, ,l~ l~galeffeC;l.or,tqe"!ax:c;Onsequenc;es of this c;ontrac;!. These are questIons for
300 your lawyer. " '" , , ,
I agree 10, sell the propertyforlf1e price and lerms ahd COnditions
set forth above. '
I "agree to purchase the property for thepnce and terms and
conditions set forth above,
SELLER
Manha C. Arens,Trustee, The Arens Family Trust,
TIN;
BUYER:
W,'Peter Enck. Mayor
City of New Hope
(date)
(dale)
SELLER
BUYER:
Daniel J. Donahue; City Manager
City of New Hope
(date)
(date)
Jensen &Sondrall, P.A.
8525 Edinbrook Crossing, Suite 20 I
Brooklyn Park, Minnesot a 55443
(763) 424-8811
This Purchase Agreement was, prepared by:
Others who will assist Seller or Bu r with this transaction:
Lawyer For Buyer
Telephone :
(763) 424-88j I
Facsimile
(763) 493-5193
Steven A. Sondrall
Jensen & Sondrall, P.A.
8525 Edinbrook Crossing
Suite 201
BrooklynPark, MN 55443
(763) 424-8811
103391
Listing Agenland Broker for this transaction are:
N/A
Telephone .
Facsimile:
Selling Agent and Broker for this transaction are:
N/A
Telephone:
Facsimile:
MUlerlDavis Co.. 51. Paul. MN-Fomt '300
Minnesota Standard Residential PurChase
Buyer's or Lender's Title Insurer:
Old Republic National Tille Insurance Company
400 Second A venue Soulb
Minneapolis, Minnesota 55401
Telephone.
(612) 371.1111
M,S.B.A. Real Property Form No.1
PURCHASE AGREEMENT I PAGE 5
Facsimile:
EXHIBIT "B"
PRICE DIFFERENTIAL PAYMENT! ANALYSIS OF COMPARABLE PROPERTIES
Subject Comparable Comparable Comparable I
Property #1 Property #2 Property #3
i
Price (appraised) $250.000 $269.500 $269.900 $272.430 I
Address 5440 Winnetka Ave 4725 Gettysburg Ave 3301 "Hillsboro Ave 5536 Lonng Lane
North No. No.
City New Hope New Hope New Hope Golden Valley
Date of Inspection 12-5-03 I
Style , 1.75 Story Split lever Split Entry Split Entry
Construction Average to Good Above Average Above Average Average
Actual Age/Eff.Age 1952 1971 1969 1963 ,
ConditionEGF Average Above Average Average Average
No. of Units 1 1 1 1
No. of Rooms 8 9 8 9
No. of Bedrooms 4 4 4 4
Bedrooms Required
No. of Baths 2 2.5 2.5 2.5
Above Ground 1,630 sq ft 1,980 sqft 1 ,548 sq ft 988 sq ft
Finished so ft
Below Ground 236 sq ft 100 sq ft 1.068 sq ft 988 sq ft
Finished so ft
Total Finished Area 1.866 sq ft 2,080 sq ft 2.616 sq ft 1.976 sq ft
Basement Fufl- finished Full- finished, Walk Full- finished Full ~ finished
out
Bsmt- Types of Fin. Family room, Family room, Family Room. Walkout
Rms. laundry. wood shoo Bedroom, Office Bedroom, Office
HeaUCooling Gas FA/ CA Gas FA / CA Gas FA/ CA Nat Gas FA / CA
Fireplaces None One Two One
Other Finished Space
Garage 1 - attached 2 - attached 2 - attached 2 -attached
Lot Size 21.000 sq ft 12,498 sq ft 13,050 sq ft 15.000 sq ft
Neighborhood E/B Suburban Suburban Suburban Suburban
Schools NA NA NA NA
Public Transportation NA NA NA NA
Church Less than 1 mile 2 miles 5 miles 8 miles
Place of Employment NA NA NA NA
Water 1. Type 2. 1. City 1. City 1. City 1. City
Adequate 2. Yes 2. Yes 2. Yes 2. Yes
Sewer 1. Type 2. 1. City 1. City 1. City 1. City
Adeouate 2. Yes 2. Yes 2. Yes 2. Yes
Other Comments: - $3,000 _ garage - $3,000 - garage - $3.000 - garage
- $8,750 - above + $2.050 - above -- + $16,050 - above
.. These amounts ground finished ground finished ground finished
factored in to the + $1,360-below -$8,000 - below - $7,520 - below
comparable price ground finished ground finished ground finished
+ $4,500 - acreage + $4,500 - acreage + $3,000- acreage
- $1.000 - fireD/ace -$2.000 - fireDlace - $1,000- fireplace
Comparable Price
Project Price
Difference
Moving Expenses (self move)
Estimated Closing Costs
Total Benefit
$269.500
$250.000
= $19,500
+ $2,250
+ $4,500
= $26,250
RfW Agent Karj Klassen
03
Date 12-11-
'~?:~::;~~!::~~~1)v:'~ ,', :',i'
APPRAISAL REPORT
OF
Sinele Familv Residence at
5440 Winnetka Avenue NoIth
New Hope, MN 55428
AS OF:
November 4. 2003
PREPARED FOR:
Martha Arens
5440 Winnetka Avenue Nonh
New Hope. MN 55428
PREPARED BY:
Meeks APpraisal&' Cons\1ltine
Melodv J. DeVine &. Kevin T. Meeks. MSA
3112 Hennepin Avenue. Suite 250
Minneapolis. MN 55408
Meeks APPTIlisal &. Consulting
3 112 Hennepin Avenue. SWle 250
MinneapOlis. MN 55408
November 6. 2003
Martha Arens
5440 WinnelkaAvenue North
NewHope.MN 55428
RE:
Property:
5440 Winnetka Avenue North
New Hot>e. MN 55428
N/A
C03- 137
Name:
File No.
Case No.
~, , -~'_.'-~""".-'''''~
__ ':'::'~~"'+'5:~-+::~~-~~~.' -~_~_!~ --._r_"~_~~~~~:::~~,. ~,',,":::
Dear Ms. Arens:
. In accordanee with yom- request. I' have personally inspected and prepared an appnrisal report of the real
property located al:
5440 Winnetka Avenue North
Tbepurpose of this appraisal is to estimate the lII8lket vallie of the property desc:ribed in the: body of this
appraisal IepOit.
Enclosed, please find the appraisal report~Ch -describes cmajn' data l!lIthered duriJIg OW" investillation
of ,the, ,property.., The methods of approach and reasoning in '.the Valuation of the various physical and
ecoi1omic factors of the subject property are contained in this report.
An inspl:ctiQII of the property and ,a study of pertinent factors, including valuation trends and an analysis of
neighboriJoOO data, led the ,appraisc:r to the conclusion thaI the market value, as of November 4. 2003
is:
$ 250,000
The opuullll of Value expressed in this report is contingent upon, the limiting conditionsatlached to this
report.
It bas been a pleasure to assist you. If I may be of further SCI'IIice to you in the future, please leI me know.
RespectfuIly SlIbmitted.
_~~fP/~
~~.~~.'~~3".
"-'-":"~~'"cC__.~,.~_,.,__~)
., "'"";;;f:",,,"+""'0~~0'fo-r:":'~', ':~,~- :-;~,:~
p
Complete" AJ:\Jlr'alSai Summar. Reoon
UNIFORM RESIDENTIAL APPRAISAL REPORT Filo ~o.
5440WinnetkaA ueNorth . C.... New~ SE"O___M};__?:.1PCOCk. 55428
Descn lOll Auditor's Subdivision No. 226 Lot 38 Nonh 70 Feer. ,!fSoutlt 520 Feer Ex~ Road Coun~__ __..__ Hennepm
A5ses$clI'sl'ucelNo . o5;.j18i21~' !. .. . TuYear 2003 RE Taxed 1889.Q9 S~~S._r NiA
I!orro\m" N/A Current Owner V.N. . X Owno, Tenant \<acanl
XFet S.m 10 Leasehold tel T POD DIVA on!\-) HOAS NtA 1M"
N/A_~~____~.R.d~~King'sMap91-D.:! __CensusTracl 215.0:-
N/A ~"on an<l~~_am.J!.unl.!>L)oaI1~chargest~lons_lO be p81d~' sellor __. N/A
Address 5440 Winn~ Ayenu~]li9rth~New llo~._MN 55428 ~____._
Address vi" in . J\;,' ~~4
Pmlorai...t ~ f.mily .000sio: P......t ...d .u % l.JI.d ou r...,o
=::. Under2S% oc:c.."..,' = ~~ Onefamll~ 9~o _XJ'lilolhkel~
-K Owner 140 Lo" 5 24litmil\ _..l~o In process
.Tenant .-2OO--lliBh~ Mulu-litmJlL}% To
2' V_IO-S%) ~~lIllII\t iCommen:'al. 1%
V_ """,5% 190-260 4().. 0
ect Name
N/A -- Dole ofS","'
Martha Arens
rtvDarri '.
Iti
_UrbOn
~0ver75%
~ Sui>utIl8n
~.25-7S%
. X SaobIe
, Stable
X In balance
Rural
= Rapid
ltktl:,
Slow
= Ilec:lwng
~ o.a-~
i
j
j
I
P....j...lofOl1lllllioDfor PUDs (If applu:able) - Is the clcveloperlbuilder in control of the Home Owner's Association (}fOAl" Yes .K No
Approximate toW nlDl\ber of units in the subject "",jeer N/A Approximare .-. number of uniIs forM m the subJect project NIp,
Describe common elements' and teemIliOlllll facilities: I ~_ _
Dimensions ADOroximatelv 70'X300' Topography GetnlY..SJpJ)in~
Site area 21.000 SF Comer Lot --.J Yes X 1 No SizIe ~f;J'J!1an lYJJil;al____
Specificzoningclassificationanddescription RI Simde Fatnil" Resi~al ; Shape ~JZlIJ!lr
Zoningcompliance 'X!LegaI_ i~ DlIIICOIIIl1nni .{Graad&lhaed...} ---,Illegal ----,No Zoning DtaillB8e ADoearsad~lI$K_
HWrcst" bosI ... as imoroYcd,: X i/'Jaentuse iOlher \ISO {OXDIainl View R,~idenlilll__
UliIilios Public 0Iher ' 00..;. Imp_...u.. Type Public Pri_ LondscaplDg ----1'm~LfuL!!~1tI1bo_rlLQOl\_
Electricity ~ Fuses ' S_ Concrete ~ : Driveway Surface AsJl1!!llt__ __
Gas ~ ! CutblJlUlter--Conerete X- .Appmnt....ments -ImigLI!.ti!i!Le&$eIDen~_
W..... lK; i SidewaIlc Conr;relf' : X . FEMA Special Flood HlIlattI Area -. Yes :x No
San!tarysewer IX' i S_ligius . Electric ~ 'FEMAZone ~_MapDole 1/2/1981
Stormsewer I X All FEMAM No. 70177 OOOJB_=
Contmems (Dppamlt adverse easements. 0I1CnleCbw..1IS, special ossessmems. slide __ illegal or legal ~ing 7Dlllng use, C1C) ~re are no
a arent adverse easements or encroachments that would negativelv affect the subject property's marketagilliY..
FOUNDATION
Slab
CrawlSpace
Ba$ernent
SlDI\p Pump
Dampness
Settlement
Infestation
,FamiIRm.i R<<.Rm.
INSULA nON
Roof ...c!!~d.
Ceiling ..r:-'!.!1lp~
Walls -CnCld.,
Floor ..r:J!!;!lL
None
Unknown
iX
GEN~ DESCRIPTION
No. of Units 1
No. of Stories
Type (DetJAtt.)
Design (Style)
Existing/Pmposecl
Age (Yrs.)
Effective
ROOMS
Ba$ernent [
Levell
Level 2
FiniJbed area .bove contains: 4
INTERIOR M.w1l'C:ooJdition ! IlEA T1NG KITCHEN EQUIP. : Feet of Gross Livin Area
Floors Camt.t Vinvl/Av". Type ~ lle1iigemor ,P-:; None = I ; X CAR STORAGE
Walls Plast PL.....WdJAYIZ ; Fuel ~ Ilange!Oven ij>':; S..... _ ~ None
TrimlFinisb WOC/(!/StAin/AVI{'.' Condition AVfl. i. DisposaJ ;-"1,,' .......S-.r PIIio None ~ Garage Nof.....
BatbFloor cr V' 11 ....., ....." - . D=I: Wood:X,' &M_L_"
. .. InvAvfl I COOLING I Dishwuher LXliSCllllle _ _ ~.... ~
BatbW~ crWainsCOJ/Avfl. : CemtaI rA ! F-"'--" ---; Porch None _ Ootoched
Doors H .,' ~ -uuuu Wr. Floor Fence N
C Wood/Avfl ~ 0Iher Nnne! ~ ~II u__" . one -.i: Built-In
~ - i Pool NOlle' II'Catpon
.. : ~on iWabet p,i Finished _
Additional fatures (special energy, efficient-items, etc.): . ~ . . LX 1!
Addendum for additioilal featul' . td al m
. ~ition of the irnJm>vements. ~ (pbysic:aJ. func!ionaJ. and e:xteniaI).. .. .
s . ov I av en' i with no a t d fi . .RPlUr$ ~ quality of COIlSlrucllon. remodeJingfodditions.. . etc.: I!!ut.b;..ct
I maID an Ih' '. ~
W . n fv b' T ua . n e a
I tw ewwn w in ew tw. v tsl e ew 1
~ ~ conditions (such as. but IIOllimited 10. I'-lfous' . n . '.' f .i n' av .
.1IIDJOJIiotevu:tn.tyofthesubjecrpmpeny.: 0 ~ toxiC ........... -> paem m the impro........... an the site. ... in the
i '.' v'" Vi V I' 1 di in' e i r
Fzecldje Mac F_ 70 6-93
84
FoImieMoeForm 1004(6-93)
..'
UNlFORM RE$IDENTIALAPPRAISALREPORT ......Na rn,_In ,
~$ 75 0()() ..~.. ...... c_ AI>Pua"" t-n ... __ of .... ..._....,
i..., ...1lk.'"'I""'" tGat ""k:ularimond for HIm. VA MIl FtaHA. tile 1
:~'~-",.Iifc of tile p1l!lCIIy):The cstlwated. I
!valueoflhe:subicct site is based on compara~lcland sales. i
I8swcllas ont)'Picalland to total value rauos tor the I
meiahborhood.' Estimated renroductlon cost Iscsumated I
lusinuMarsball Valuatlon's ResuJentlal Co..t Gwde
IDepreclatlonlS calculated uSlQg the ctlecm-e ageJe~!!(>m!L..J
22 989lifemethod,
168 583
10000
.,~, ~83iEslR....liCcftLik 66
CO!\IPA.RAaLE NO. ~
~I~~~ A~ue Nonh 3216 Esllm C01D1
~ New Hon.>
.... 1~"S~900 _._r-2-l12 ~lles ~~~ <}(J(1
137"4 . [,{] Is n'21.1
~S , ML~
COWlI\' Records
DESCRIPl10N ...)$............,
I Conventional
No Points ,
+, 4M 9n6mJ03 8 Davs
-'2000 Su.....rinr I
I Fee SimDle I
+1'2000 12.675 SFIlnf I
ResidentiAI/Sim.
'-Stmv/Sim. i
! Similar
i 35al8...1Oe
; Surworior i
iT"",I_I_ I
+2.000 8 I 4 I 2.'25 i
-200d L 928 SQ. Fl. I
I Full Bsrnl
-2500 0 Fin. SF. 0 Bath
i Similar
f FAICA
I SlandardE.E. )
-3 (J()(\ 2 Car Attached
I Patio. Deck
+) 50<: I Fnlc.
-1000 Fence
V"'_ So<Iiaa
llS'I1MATED SITE VALUE... . ". ." '
l!SmlA1'IlD JU!t'R0D1X'IJ0N COST -NI!W~lMPRoVEMENTS
~ 1668 Sq. F1.@ $ %.00 :" $
Bsn1t''-'.480F~.. Sq.Ft.@~ .... .3~.OO ::
see ComI!1ents for Additional Items =
~~ .308Sq.FL@$ .' 18.00. -
;r:~ICd~~7'12-r'-;;"'l _. I~I
Dopnc:iIoli"" 22.989 ;
~ Value of ............-. '
"Ao..' VaIuo of$itlO Jqno. . "",
INDICATED VALUE BY COST APPROACH
I1'EM I SlJl:lJECT
5440 Winnetka AvaJuc Noph
AddRa .' NewHone
PnwiMa" to Sabil:ct .
160 128
14400
11500
5.544
]91572
.
=$
=$
=$
$
COMl'ARABLENO. I
I 3542AtIUili1 AvaJue North
NewH.......
2.1I10Miles sw
NIA' ."IS "36325
0.00 IJ2' Sl~'llI'; ..... T71
Inspection . .. ~
€ountvRecords COWlhi Records
DESCRJP110N DESCRJP110N
.' Cori~tional
. NoPmnts
191)"""
Sn....".;.., '.,
+ I 3()(
- '2. lJO(
""
SII."-",,,t ~O".
COMPARABLE NO, 3
.
I
IS
SoJ.. Price $
PriccJGnJu LiV. Ala S
Dora IDoIIor
V~Scoln:e
VALlJIl'ADJt)S]'MENTs
SaJoo~"~
~
'Date ofSolclJ'ime
lioca1ion A.......o..
f..~~~.~:'--];ee'~':~.~ .,';~'
Site. ., - 'tAw
View ResidentiaJlA."" I Re..idtn11AII .1m
i:t:r~1 ~5~S;:::""1.~:e~ .... --~ -2'~irn~::
1,'A;cAct.lEff 51al8..1Oe '40aJ8..1oe-' 39a18~]Oe J
~<hdc T'" .t::ie.... T"",I~r_ +4000 T"'" 1=1~'.... >
.IWoaIc- 7 >! 4 L 2:00 7 141j.50 +'lJO( 8 ' 4 11'10)
GrwaLiviaoAla ].668 Sa. FL 1.536 Sa,FL +330{ 1748 SQ. Fl.
::':::=~ , 480 Fin~ 0 Bath FullBsmb . , +21lOC 728~~::~thi
I'~ UtiIitv Average" SiiniIar Similarii
.' FAtr'A.' r: AI("1A. . r: Atr'A
~-E1Ji<:j=.... Standard E.E. Stmtdard E,E. Standard RE i i
....... I C&r Attached 2 Car Atia~hed _1 IlOC , Car Attached I '
~ Patio, Dook. Deck Pcck Deck I
F~"",\ Ole. '.. I' Wd'SIlM: . ?lirifu.._:;S/l( 0 r:nlc.
F.i.b. POol. ole. Nnne N;"'~ Partial Fence I'
i.' " !i
~Adi.(liJIa1\ _. IXI+I '.i. S 17.200 IXI+ 11- S7400 fl+ Ixl- s -5.200
~Pricc '. ~t~'~j 2'11 m t:.. ,: k 247300 ::".::: k 249700
~ .... Sol.. ~. (ino!u<tiag tile .1IIbjocl.~.y>.......tibiIity to. tile ............... _I: In srnne cases where there have not been
~ in ~ :.: ::~:u~ a' "h~t"hve sold wi~;n a.m~l~sp~ect'st~~~~~ n~;=c: ;:xt:'~st~::no area
~... "" " ......... -... ........"' "'IlIF. _......d'w-. ~ _""oc ""'~ m
bj}1. IS. Anti nth.... Am"";ti.,s See C.".,..; ent Addend"m f..... additional information. .
,
rrEM SUB,JI;cr
~~""Data N/A
~fotprior.'" ML S
'''''''rof .-0...1
., i'
NnPm..,.
+240/' 'lln9nfl/11
-2.0l)( Sun.,,;nt ....
,
,+f~1VV '--J094~ ~"n_..
+11(){J(
-6.00<:
-I.()()(
-6 S()(
+5.()()(
-3.00(
-U)(J(
- LIlOC
-2.()()(
COMPAAABLil NO. t
N/A
MLS. Co~tt. Records
.' '.,
COMPARABLRNO. 3
N/A
MLS; County Records
of oQy -. _ of 101.. """"'" a< IiIIirI@ of /Ill ...... P"I*lY ODd .-lya;. of any pnor _ of......... ""'1' ~ -. _ __ of tho dale of _,
and tho above comOllrables have I1OtlOld exc:cDt as stated within the DIlSt three voars from 'he effective date of this annraisa!
BaSed On.data fr..... tl.e U"I'""e Uabn" SerViCe the sub;~~t ......-, has not been listed for aal~ within the nast \'Car.
ijq)ICAn;n V..u.UE BY SALES COMP.o\RlSON APPllOACH '. . . .'. . ' , $ 250.()()(
lNDICATEDVALUEBYINCOMEAPPROACH iIf.fmolio:a1>lc\E.tim.t..tMatblRenl$ N/A 1Mo,"GnJuRenlMultiJ,lier N/A..s NIA
~~I.. made lXJ '..." Uaabja:ltotlle -u.,~l~~ or .......w- liIlcd below UauI#:l '" ____ par piaAa ond -.-w..iWna.
~ofAppniaaI: Due to alack of rental data for oinolefAm;lvhnmes_simiIar .to thesub'ect""*-tv the it1l".ntne atmrnAch is
jcorisidered unreliable and thus i~ not used ines' ...' suhiect's fair market value.
!,;;.a~ The sales CODmarison a""""',,\., tn Va,lueis the best method of estimating thesubiect's markelvalue as it is the
.lnethod used' . Andscllers 0" .;c . ",..; _L wellsurmorts th;' final omni"" nfvalue.
. .....' ..... ,
TIIo...... of lIlia ---I · to ........ Iho ... vaIIaolit' ~....~ tbat . auiIjct to lIlia npon, ...... .. ... ....... ~ aad ... ~ --.m
0IlfI ~ oondi1iaaa, ond", -. ~ tbat ....~ iatllo attadIod FJWddio MocF_ 439/Fami. Mae F.... 1004B (IleyiIod 6-93 ).
t ~ QTlM.\D 1'HII ~ VAL1IK;AS ~ en: ~ ~ PR,0nR'rY 11IAns 1'HIIlIIlBBCT OJ> 11Ds RZPoRT, AS OJ> NOWI11ber 4. 2003
~TBE.IIA'7f~, fjd . I L. /TAt1.!' !'r-. . OF11DS. ~~~~~~
Si~VJ1~ '~il"~ 'Si.- ......,- I, ,yt~ -. OODid ODidNot
~'. ..>>;.. ". ~"" '. KeyjnT.Meeks """"'Pnopaty
Il*~Si""" w,y.... ..... . "'.. Dote-Si-.l '''nil'>
-~ # Re..i~ Real Pronertv AunaiOer "'$tatD MN &.Ie c::.titioatm# ..,
llrS_u-# 20346016 s.a..,'.MN" llr&.leu-# 4OO~016
FhlcIdi. Mac FomI70 ~
$&at.
MN
MN
St.IIe
"""""""""'~""""'-"_T_tOOO)6n.a727
F--MaoF_IOO4(6-93)
""ll!"1"'~!r'~!"""",,'""--'-'
\:~5+<
coMMim- ADDENDUM
FileNo C03-137
:::: ~\ 5440Winn~~~lrilii~bffif::t'0;,t.~~".':'
City New HOlle Counl\ . HeIIl!min
~er/Ch""l M!lltha Arens
Stale. MN Z'l'~~~~~28_
Add"", ~44(LWinne~ Avenl!~Jlipnh. N_e~:JiQJ)eL~ ~5428_
COMMENTS REGARDING DIGIT At SIGNA TURE(S) ON THE APPRAISAL
The digital signature(s) on this appraisal reponare paSsword protected with access available only by the person
who's-signature it is.
INTENDED USER AND pSE OF THE APPRAISAL
The intended user of this appraisal is Martha Arens and the intended use of this appraisal is to aid in negotiations
for a potential sale oftbe subject propeny to the CitY of New Hope.
SCOPEOFTHE APPRAISAL REPORT
The scope of this appraisal report includes a physical interior and exterior inspection of the subject propeny" as well
~ an exterior only inspectibnofthe comparable Sliles by theapPnaiser. Jn~~iti~n. comparable sales are selected
using the multiple listing service, (M~S). '- -
AD~RSE ENVIRONMENTAL CONDITIONS
NOadverseenvironmerital conditions or safetY concerns are noted that would negatively affect the subject
propeny's marketability. however. no ,tests were made in arriving at this conclusion. The appraiser is not qualified to
detect ilazardous substances and urges the client to retain an expen in this field if so desired.
If the subject property was constructed prior to 1978. tbedweIling may contain lead-base paint.
The appraiser is notperfonning a home or enviromnentalinspection. The appraiser provides an opinion of value.
The apP!'aisal Goes not guarantee that the propeny is free of defects or enviro.nmental problems. The appraiser
pert'onns lItI inspection of visible and accessible areas only., Mold may be present in areas the appraiser cannot see.
A professional home inspection or environmental inspection is recommended.
COMMENTS REGARDING THE FINISHED 'BASEMENT
All rooms in the basement are approximately 50% finished. The den and latlDdry rOOm have finished floors and
walls, but do not have finished ceilings. The work room has finished walls and a finished ceiling, but does not have a
finished floor. The hasement is considered approximately 50% finished overall for the purpose of this appraisaL
ADDITIONAL FEA TtiREs OF THE SUBJECT PROPERTY
Additional features of the subject propeny includecovedplaster ceilings, an arched doorway between the living
room and dining rooms" a bow window, a garden window in the kitchen, three ceiling fans, a, built-in corner hutch in
the dining room, wood wainscotting in three, rooms, a built-in linen closet in the flist floor hallway, built-in drawers in
o~e of ~e second floor bedrooms. wiring and speakers for a built-in sound system on the secbnd floor, a glass block
WIndow In the basement, a wood burning stove in the basement, central air conditioning, a deck and a shed.
ESTIMATED REPRODUCTION COST-NEW-QF IMPROVEMENTS ADDITIONAL ITEMS
A~~itional ite~~ included as a line item in the estimated reproduction cost-new-of improvements include three
celhng fans,wmng and spelikers for a, built-in sound system on the second floor. a wood burning stove in the
basement. central air conditioning, a deck and a shed.
CIdlFOIlMs...,___.....-..T___lIOO)~
COMMENT ADDENDUM
File lIio C03-137
Borrower N/A
Propeny Address 5440 Winnetka Avenue Nonh
City NewHooe County Heoo~p_i!L~_~~~__~____ _~___ Z]pCodo55428.
Lendor/C,henl Martha Arens ' Ad~~_S440Winnetka Avenue Nolth. New Hope. MN 55428
COMMENTS ON THE SALES COMPARISON APPROACH
C()mparable Sale #2 is located on a quiet~rsi4e .~treet compared t() the, subject propeny and is therefore adjusted
do~ward f~r ~ su~nor location. This compara, ble has a smilllerlot si~cpmpared to the subject propeny and is
th~ref()re adjUSted upward .for its inferior site. '
Comparable S~le#3 is.located?n a qUi~ter side street compared to the subject propeny and is therefore adjust~d
downward f~r Its supenor location. ThIS cpmparable ,has a smaller Il;lt size compared to the subject propeny and is
therefore adJu.sted upward for its inferior site. This comparable hashad more updates compared to the subject
propeny and IS therefore adjusted downward for its superior condition. .
CIicId'ORMs....--__by_T-.....,.(IOO)612-1121
SKETCH ADDENDUM
F,le No C03-l37
Sure _MN ~ ,~~IJ'~od~5~28".
Address~O WinnJLtl@_Av~u~,No11h..New Hope,M1Ii5~2S_,__.
FIRST FLOOR SKETCH
,36.0'
7.0'
Sedroom
14.0'
Dining
Room
Kitchen
D
28.0'
Full
Sath
BI
Sedroom
Uving -
Room
1-car "
- Garage
22.0'
24.0'
/,D
2.0'
14.0'
12.0'
SECOND FLOOR SKETCH
36.0'
Full
Sath
Eledroom
19.0'
Sedroom
19.0'
BID
36.0'
SI(ETCH,CAL.cULAnONS
..,
: A1 : 36.0 x 27.0 =
! A2: 12.0 x 1,00:
I First Floor
972.0
12.0
102
G
984.0
: A3: 36.0 x 19.0=
684.0
i Sitc:ondFIoor
684.0
~ =
[J
i Tatal LivIng "-
18li8.o
i
I At : 14.0x 22.0 =
I
I
I A1tachecl Ganille
308.0
308.0
~""-''''''''''-bya-...T__IIIIO)62U727
SlJ.HJt.C 1 !'J::lU 1 U AlJ.l.H..,'UlnH
_N/A
Property Mdras
Cilv New Hone
Lendor/Clicnt . Martha Arens
5440 Winnetka Avenue North
CourII'>. Henneoill
rHO; ~".. 1,.;,.1,.'."- 1_~
SUle MN Zip Code 5>128
Mdras 5440 wiImetka Avenue North. NewHooe MN 55428
~""E---by_T-""-(MlO)02U721
FRONT OF
SUBJECT PROPERTY
Addnss>
5440 Winnetka Avenue North
New Hope
REAR OF
SUBJECT PROPERTY
STREET SCENE
EXTkA ~U.HJt.,Ci t'tiU 1 U AUVL'VL.H
'~"Y'
Born>wcr N/A
Addnos 5440 Winnetka A
City New H
Leader/Client Martha Arens
....'.'''-. '
-----------""
~ MN ('ode 5542S
5440 Winnetka Avenue Norlh. New HODe. MN 5542R
=
:,
CWi'ORMsIlool_......-s..e-byIlndbdT-,..(IIIOJ~.am
ADDITIONAL REAR VIEW OF
SUBJECT PROPERTY
VIEW OF SlffiJECT BACK YARD
SHED
EX.l.KA~lJ~Ji:..Ll t'tlUIU AUlJ.l:...'U)L,U.
I"1i....,.. ....'."-1..'
~NlA
"'-v Addnooo 5440 Winnetka Avenue North
Citv' New HaDe ~ 'Hennenin
Lcadcr/Clieat Martha Arens
Srae MN ZIp Code 55428
Addras 5440 Winnetka Avenue North. New Hope. MN 55418
ROW \VINJ)OW IN SUB.TECT
LlVING ROOM
SUBJECT KITCHEN
SUBJECT SECOND FLOOR
FUll BATHROOM
.' ~:~~"&.+~-by_T""""l*>m.am
'.,;J."'
f-~;~iK~VIV AUUL..'\UL.h
:t;'
_ N/A
p",peny Add=;
CItv New HODe
Londor/Cbent Martha Arens
.... \.'.' ~ ....
5440 Wmnetka Avenue North
'~;;"~~f!~~~~:<i. . .'. '. ..... Stat<. MN' . . z.n,Cod< 55428
,....., ........,'. '.'- 5MO W~~lb~\'er:tU~OI:tIl...N~~ Hope, MN 55428,
COMPARABLESALENl
-
3542 AQwla Avenue Nonh
New Hope
COMPARABLE SALE 112
-
8216 49th AvenUe North
New Hope
COMPARABLE SALE 1#3
-
3216 Esim COlU1
New Hope
EDA
REQUEST FOR ACTION
Originating Department
Approved for Agenda
Agenda Section
Community Development
'"
B/~
1-26-04
EDA
Item No.
By: Kirk McDonald, Director of CD
& Ken Doresky, CD Specialist
8
DISCUSSION REGARDING 7615 BASS LAKE ROAD (NEW HOPE ALANO), PURCHASE PRICE,
RELOCATION BENEFITS AND REQUEST TO PURCHASE CITY-OWNED PROPERTY AT. 7601-41 62ND
AVENUE NORTH (IMPROVEMENT PROJECT FILE 723)
REQUESTED ACTION
StaffrequestsEDA discussion and direction regarding the 7615 Bass Lake Hoad(New Hope Alano) purchase
price/appraised value, relocation benefits and request to purchase city..owned property at 760 1-41 62nd
Avenue North.
As directed by the Council at the November 3, 2003, Work Session, staff has coord.inated with Evergreen
Land Services, the city's relocation consultant for payment of relocation benefits to all remaining sellers in the
East Winnetka Livable Communities Area. The city's purchase offer will now consist of the appraised value
and a relocation payment determined by the city's relocation consultant. Evergreen has estimated that
relocation benefits for this property will be approximately $35,000 (estimate attached).
POLICY/PAST PRACTICE
City goal #2 is to pursue the maintenance, and redevelopment of commercial and residential properties within
the city. The City Council has been addressing the residential portion of this goat through the city's many
housing activities, including acquiring property. in areas designated for redevelopment inthe Comprehensive
Plan.
BACKGROUND
Over the past year, staff has met with the New Hope Alano Group to discuss the potential acquisition of their
property and relocation options. Staff last met with Alanoon December 22, 2003 (see attached City Attorney
correspondence summarizing the 12-22 meeting).
On May 28, 2002, the Council authorized staff to obtain an appraisal of the property.. An appraisal was
completed in July 2002 and valued the property at $465,000. At that time, the Council felt the appraisal was
high (see. attached. 7-22-02 Council minutes). In ,October 2002, staff requested that Hennepin County reassess
the property (tax exempt properties are only assessed once every 6 years). The updated assessment valued
the property at $415,000 (attached).
MOTION BY
SECOND BY
TO:
Request for Action
Page 2
1 ~26-04
Although the July 2002 appraisal is seventeen months old, Alano is still willing to accept the value with no time
adjustment. Per the attached Alano correspondence, Alano. is willing to accept the July 02 appraisal and
current relocation benefit estimate of $35,000. AI a no's ,mein concern is relocation. TheywoLJldlik~ to re.locate
as close as possibletoth~ircu~rentlpcetion.()verth~PClst several months, staff has met withAlano ang
presented many relocation options. Staffstroflgly recommended that they coordinate with the developer ,of the
proposed office condominium units at 42nd and Quebec Avenue North. Alano has seriously considered this
option, but feel that citY9ssistance inadditipn te> th~ pprctlas~ price and reloqatipn, estirncat~\^J()LJld b~ required.
Finally,)\lanojsr~questing .thatthecitY,c:ol'lside{ti.l3IUngthem the, city-owheg.prop~rtyat7p01-7'641 62n~
Avenue North to construct a new facility. Staff research~d this option and provided Alano with information
pertaining tothe property (see attached 12-4-03memoraodum).
Staff is seeking Council direction on Alano'srequestfor financial assistance to re.locateto the office
condominium developme~t at 42nd and Quebec AVEmues North and their reqljest to purchase the city-owneq
property at .7601-.7641 62~d Avenue North. .
RECOMMENDATION
Staff recommends:
.
that the Council authorize staff to proceed with a purchase agreement for the property based on the:!
July 22,2002 appraised value of $465,000 and relocation estimate of $35,000 .
.
that the Council provide. direction to staffTegarding the city-owned property. on 62nd Avenue North
i'
· that Alano submit a separate, more detailed request forpotentlal assistance needed to relocate' in ail
'new facility at 42nd and Quebec, to be. considered from the purchase agreement/relocation package onli
the currentproperty. .
FUNDING
The subject property Is located ,in an area where TIP funds, can be expended. TIP funds would be used for
property acquisition, relocation and associated holding costs. During the 2003 State Legislative Special
Session, the city's TIP special legislation was passed. In December 2003, the district was approved by the City
Council.'
ATTACHMENTS
· City Attorney Correspondence, 1-6-04
· Hennepin County Tax Assessor Correspondence, 10-31-02
· Evergreen Land Services Correspondence, 1-21-03
· New Hope Alano Group CorrespondencecandConceptPlans, 1-14-04
· Staff Memorandum, ,12-4-03
· Location Map/City Ownership Map
· Council Minutes, .7-22-02
Provided in .7-22-02 Council Packet:
· Correspondence from Property Owner,(5-6-02)
· Location Map
· Topographic Map
· Appraisal
· Hennepin County Parcel Data
· Hennepin County Exempt Value Information
· Planning District 6 - City Ownership Map
· Comprehensive Plan References __ Planning District 6
01/06/2004 12:05 FAX 76J 49J 519J
DOt1GL4SJ. DnNJ:R.Z
GoJU)ON L.J~
GutN A. NORTON
SttVBN A. SONDV.LL
STAC'YA. WOODS
OF COVNStL
LoRENS Q. BRYNESrAD
'Re' Prupeny L>ow
Spec;;"i.~ CerliflOd Dy
Till' ),{illllaOt& SWt
BarAliCCWlon
......dmil.ced ill Iowa:
JESSR\ .&50SD~l..L. P . A .
.... C:o.1i-Cli
~ 00:.:: 10"..
JENSEN & SoNfjRAtt;;p~A..
Attorn eys At Law
8525EDfNBROOK CROSSll\"C, ST.E. 201
BROOK!. YN PA.RK, MDiNESOTA 55443-1968
TEJ.EPHONE (763) 424-8811 · TELU...x (763) 493-$193
e-mail.blw@jensen-sondrall.com
January 6,2004
Kick McDonald
Community Development Director
City of New Hope
4401 Xylon Avenue North
New Hope,MN 55428
Rc: New Hope AhmoPtopertyl7615 Bass Lake Road
OurYJ1e No.. 99.11276
VlAFACSIMlLETO (763) 531.5136
AND BY REGULAR. U.S. MAlL
Dear Kirk:
This letter will confirm the OUtcome of our .December 22. 2003 meeting with
representatives of the 'New Hope AlanoGroup in connection ,with [he., Cily's acquisition. of
their propenyat 7615 Bass Lake ROad. As you know, we previously bad this propeny
previously, appraised by the' Shenehon Company. In Shenehon's July ,15, 2002, appraisal,
they indicated the .value of this property wasS46S,OOO.OO. Evergreen Land Services has
also estimated relocation costs at $35,000.00. Therefore, the probable cost to acquire Lbis
propeny for RylaIld's East Winnetka Development Project is $500,000.00.
It is staff spositionthis ,is a reasonable acquisition cost for. this property. This position is
based on the following .poims;
1.
The County Assessor reassessed the value of this propeny8r'S415,OOO.OO in his
October 31. 2OQ21ettcr. (See ,letter attached.) The County'S previous,assesscd
value was $244.000.00. This value was determined in 1998 and was updated by
the attached October 31, 2002 letter. The County Assessor's value is n.ow more in
line \Vith the Sbenchonappraisat
2.
The New Hope Alane Group is still willing toaccepl $465,000.00 for the propmy
despite 'the fact the, appraisal is now nearly 17 months old. If we used the County
Assessor'sS415,OOO.00 valuation for appreciation purposes, a payment of
$465.000.00 for the property at this time would equal a 12% [0.13% appreciation
JE~SES ~ SO~1)Ml.J... '. t' .A. - '-.'D"','-D
01/06/2004 12:05 FAl763 4935193
6.
llC:J.uu-.>. UU"'I.
January 6, 2004
Page 2
3.
This propeny is' currently exempt from real estate taXes. . Acqu i ri~g this property
and including, it in the development project will return a valuable pIece of property
back to the raxrolls. ',' ,It wlllalso assist TIFfinancing. since all~esgenerated,by
this' property. within '. the new development will be considered ~ncreIIlem. if I am not
mistaken.
4,
A new appraisal of this property, given its commercialnaIUre,wi.ll'cost the City
roughly $6.000.00 to $8,000.00.
5.
Given the fact that our own appraiser conclu~this Pfopenywas a "special use"
propeny and unique in tbe>market, it would not be swprising for the New Hope
Alano Group to find an appraiser who wiliestablisb a market value in excess of
5465.009.00 for this propertyllwedecidedrorejecr their voluntary offer to accept
the, $465,OOQ,OOappraisalprice established by our July .15.. 2002appraisaJ.Our
expericncewith the acquisition of property for the Navarre Corporation on 4911l
Avenue seems to support this assumption.
TheS3S,OOO.OO relocation~stimate provided by Evergreen Land Services
increasing the .~tal,cost of this propenyacquisition tP $500,000;00,' assuming we
accept the offer, to sell the property at $465.000.00.
Therefore, basedOll tbeforegoingpoints~ we should strf;Jnglyconsider the. proposaJof me
Alano Group to seII us this pro perry for $46S,OOO.OObaseti on our own appraisal plus
relocation benefits currenUyesrimated, by ,ijvergreenI..and Servioes at S35.0oo.oo.
If youbaveany furtberquestionsor cOznments regarding.thislener or it does not accurately
reflect thestaft"s pOSition orrhe summary of our December 22. 2003 meeting with the New
Hope Alano Group, please do not hesitate to contact me.
Very truly yours,
~
Steven A. SO.l1dral1, CiryAttomey,
City of New Hope
JENSEN & SON])RALL, P.A.
SllS@jeasell.,lODdr.ll1.c:om
AfietHoua ~n 1147
0110612004 12:05 F.U 763 4B:J51B:J
1O-!!-2DD2 02:2011I1 Fr...crTY OF NEW HOPS
JE:\SE.\ 6;SO:\D~. LA. ..., ":.'\.t1-I..t1
TI!!!!!I!! T-2~8
~y~"* \Ju....
P.DD2/0nz F-'3S
..
Henn~pin County Assessor Department
A-21a3 Government Center
Minneapolis. Minnesota 5.54S7-D23,
www.cc..hennepin.mn.us
October 31, 2002
Kenp. Doresky
Community DevelopmeDt Specialist
City of New Hope
4401 Xy1cmAv=meNortb
NC'WHope~,MNSS428
A"!t1ueIOpp0ttU1JI1yEtrJpJD,.
/lecydedPtJprr
Doresky Ken
From:
Sent:
To:
Subject:
Steven Carlson [StevenC@elsco.net]
Wednesday, January 21 ,2Q043:05 PM
Doresky Ken '
Re: Alano Relocation
Good Afternoon Ken:
After I met with Alana Kubiak and Fred Boyes on December 11, 2003 and
explainedre)ocationbenefits I saw their site, and kitchen area. There
is a considerable amount of personal property that will have to
relocated. There will also be the disconnection and reconnection of
the kitchen appliances and possible electdcal work needed at the new
location to operate that equipment. Alano,is,alsoentitledto $1,000 00
for searching expenses as well as $10,000.00 forre-establishment
expenses. Based on organizations such as Alanothat have been relocated
in the past I am estimating a total relocation benefit amount of
$35,000.00 which would include all.moving.expenses, disconnects and.
reconnects, searching and re-establishmente:xpenses.
More exact figures can be gathered if needed.l?utcould not.be completed.
until Alano was totally relocated. 'to its new location. If there is
anything more you need at this point just let me know! !
Steve
Steven Carlson
Relocation M,anager
(651) 8"82-0200
Stevenc@Edsco~ net
>>> "Doresky Ken" <kdoresky@ci.new-hopednn.us> 01/21/04 08: 11AM >>>
Steve,
Could you provide me with a short e-mail or memo regarding relocation
benefits for Alano. We don't have anything for them regarding relocation
and I would like a memo or something for the Council packet. The Council
will be discussing this item on Monday, January 26 (request to purchase
city--owned property on 62nd, purchase pricfe'for their facility and
relocation update) .
If possible, I could use something today. Please let me know the status
of this request.
Thank you,
Ken
Ken P. Doresky, AICP
Community Development Specialist
City of New Hope
4401 Xylon Ave. N.
New Hope, MN 55428
Phone: 763-531-5137
Fax: 763-531-5136
kdoresky@ci.new-hope.mn.us
1
New HopeAI8t19)Group, Inc.
7615 BASS LAKE ROAD · NEW HOPE, MINN. 55428
PHONE: 537-3546
Kirk McDonald
City of New Hope
4401 Xylon Avenue North
New Hope, MN55428
Dear Mr. McDonald,
January 14, 2004
Representatives of our building cOmmittee met with you and other City staff members on
December 22nd to discuss the disposition of the New Hope Alano Society property. Our
committee then met as a group to review the relocation issues confronting us.W e have. no
quarrd wiih the $465,000 appraised valuation arrived at some 15 months ago or the $35,000
estimate for relocation expenses. However, despite our efforts, we have yetto identify a suitable
alternative to our current location.
In recent months, we have looked at dozens of properties in the area. Our frustration sterns from
having not' found an affordable solution that would allow us.to, continue to serve the residents of
New Hope aswe have for more than 35 years. We need your help to do that.
The proposed Frey development at 42nd,and Quebechiil.S been · one of the sites you urged us to
-COnsider. However, the initial cost estimates for a building at that location turned out tobea
great deal more than the proceeds we woul<;l receive from the sale of our property. If there is
anything the City can do to assist us in makingthataItemative fit our budget. we would be most
amenable .to moving 'there.
Another altemativeis the City's property at 62nd and West Broadway. Apparently, that site is
not presently zoned for a use like ours. Perhaps ' the City might be willing to change that and sell
us the land. Maybe that transaction could be combined with the disposition of our' current
property in such a way as to make it affordable for us to pUla comparable building on .that site
and move there this. Spring.
The notion of moving at all isa sad one for thehundreds of residents who have corne to depend
on our building as a safe. place to recover ,and . socialize. Every day, the hospitals" treatment
centers and legal community refer people to stop in at our location and get the "help freely offered
inside. Ours is ,a service invisible to most of the cornInlmityyet one that would be sorely missed
and one that would surely impose a burden on taxpayers should we cease to exist.
We were most gratified to hear thattheCity wants us to remain in this community andwe c,an
assure you that we are committed to being of service to New Hope residents for years to corne.
With the City's help, we are certain away to do that wiII.be found.
Sincerely "
Nev,: Hope Alano Society Building Committee
Where there isNewHope through Sobriety
Tuesday, JanuSlry 13,2004 9:14AM
Shelly .Jones
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-441_
Memoranduim
To: Kirk McDonald, Director of Community Development
From: Ken Doresky, Community Development Specialist
Date: December 4. 2003
Subject: 7601-7641. 62nd Avenue North
Below please find information pertaining to the subjectproperty:
BackOfound:
In 1998, the Council passed a resolution approving the city of New,.Hope Comprehensive
Plan Update. In 1999, the Metropolitan Council approved the Comprehensive PlanUpdafe.
In the Plan, the city was broken down into several planning districts. The subject property is
located in Planning District 2 - bordered by Winnetka Avenue to the west, Brooklyn Park to
the north and.' Crystal to the south and east. The Planning District 2 recommendation
regarding property along 6200 Avenue North is as follows:
''The medium density housing located along 6200 Avenue, between Winnetka and West
Broadway, has been identified as a redevelopment target, area. The poor building and site
conditions associated with this medium density use are negative influences on the low
density neighborhood to the south. AggresSive.area redevelopment is suggested. Due tethe
limited size and configuration of the site, it is recommended that a reduction in density fromifs
present condition be made. .Medium density residential land uses consisting 9f twinhomes or
townhomeswith attachectgarages would be an ,appropriate option."
In 1998, the city acquired three four-plex buildings located in this designated area at 7601,
7621 & 764162nd Avenue North. Two of the buildings. were moved and one was
demolished. The property is now vacant and landbanked.
The subject propertywas last discussed by the City Council on August 19, 2002. LivingWorks
Ventures expressed interest in purchasing the property to locate an assisted living facility on
the site. Due to. the Council's long-term goal of redeveloping the property as stated in the
Comprehensive Plan, the Council rejected LivingWorks proposal. On October 27,2003, the
COuncil rejected an offer to purchase the EI Dorado Cf. Apartments located one, property
west of the subject properties at 7701,7721, 7741 and 77616200 Avenue North. Due to the
number of redevelopment activities underway in the city and the fact that the EI Dorado Ct.
Apartment property is not located directly adjacent to the city-owned property, the Council
rejected this purchase offer. The Council again affirmed the long-terrtrgoal stated in the
Comprehensive Plan. Attached, please find the minutes related to the two Council actions.
Property Data:
Ave. N.
Zonino:
The property is currently zoned, R-3.. Medium Density Residential. . Staff inquired, with
Northwest Associated Consultants regarding zoning required to accommodate relocation of
the New Hope AlanoFacility" currently located at 7615 Bass. Lake Road to ,the subject
property. The current facility has a Conditional Use Permit (CUP) for 58 members and is
located in the R-1, Single Family Residential zoning,district. Use of the properly as a club or
lodge without alcohol is presently not permitted in the R-1 district, therefore, the facility is
classified as a legal non-conforming use. Alano representatives have indicated that the facility
now has between 75 and 100 members.
The planning consultant felt that the ,proposed use at the subject location ",ouldreqLJire a
rezoning of the property fromR-3, Medium DensityResideotialtoR-O, Residential Office with
a new CUP. The facility would be. more, appropriately located in acomrnercial or industrial
zoning district.
In addition to rezoning, parking would be the nextconcem, at the subject location. The
planning consultantestirnated thatthey would require a 6,000 sq. ft. building With at least 50
parking spaces (1 space per 2 persons). The, planning consultant indicated that a general
estimate per parking space and drive isle would be atleast 300 sq. ft. Using. 50 spacesasa
estimate multiplied by 300 sq. ,ft. per space leaves us with 15,000 sq. ft. needed forpa*ing
(at the very least). A 6,00psq. ft. building and,15,000sq, ft. reqUired for parking gives usa
total of21,000 sq. ft. Doubling the parking to 100 spaces (1 space per person) wgUld.utilize
the majority of the site without considering setbacks and yard space. The planning, consultant.'"
recommended that the facility provide more information On building' sizeancj parking demand:
AttaChments:
· Location Map
· Section Map
· Topographic Map
· City Council Minutes, 8--19-02
· City Council Minutes, 1Q-.27 -03
· Comprehensive Plan References
Cc: Steve SondraJl" City Attorney
AI Bri~us, Northwest Associated' Consultants
. Page 2
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City Council Minutes
Work Session
CALL TO ORDER
ROLL CALL
BACKYARD
DRAINAGE
PROGRAM
Item 11.1
WATER
MANAGEMENT
COMMISSIONS
Item 11.2
36TII AVENUE SPEED
CONTROL
Item 11.3
LlVINGWORKS
VENTURES
Item 11.4
City Council Work Session
Page 1
CITY OF ~"EW HOPE
4401 XYLON AVENUE NORTH
N"EW HOp~. MTh;r1\TESOTA 55428
August 19. 2002
Parks &. Rec Conference Room
The New Hope CityCounciLmetin\Vork session pursuant to due call and notice
thereof; Mayor Enc~called the meeting to order at 6:30 p.rn.
Council Present: W. Peter ~nck, Mayor
SharoIl Cassen, Councilmember
Don Collier, Councilmember
MlU"y Owin~Lenth, Councilmember,
Pat LaVine Norby, Councilmember
Staff Present: DanDonahue, City Manager (arrived at 7:15pm)
Jerry Bed; Communications Coordinator
Sherry Draper, Director of Administration
Shlui French, Director of Parks and Recreation
Mark Hanson, City Engineer
Guy] obnson, Director of Public Works
G~ry ~iIlk,l>irec:tpr of Police
Kirk McDonald, J?irector of Community Development'
Dale Reed,9P~rati()ns Manager
Daryl Sulander, Director of Finance
Mayor Enck introduced for diSCUSsion Item 11.1, Discussion Regarding Backyard
Drainage Program.
The Council held 'a .general discussion regarding requests for backyard drainage
improvements, their ranking, and funding mechanisms. Staff was directed to
explore ways to educate the public on ways to resolve backyard drainage
problems.
Mayor Enck introduced for discussion Item 11.2, Update on Status of Water
ManagenientCommisslons' 211d Generation Plans.
City Engineer Mark Hanson gave an update on the Shingle Creek 2nd Generation
Plan and explained that a presentation will be made at the August 26 council
meeting on this topic. Mayor Enck requested a slight modification to one of the
bullet points of the Proposed power point presentation: Mr.. Guy Johnson, Director
of Public Works; and Mary Gwin-Lenth, Councilmember, briefly updated the
Council regarding Bassett Creek Watershed's Plans.
Mayor Enckintroduced for discussion Item 11.3, Discussion Regarding 36th
Avenue Speed Control Suggestions.
The Council ,reviewed a memorandum, prepared by Police Chief Link regarding
options for speed control on 36th Avenue. Staff was directed to proceed to further
investigate several of the options.
Mayor Enck introduced for discussion Item J 1 A, ,Discussion Regarding
LivingWorks Ventures Interest in City-Owned Property at 7701-41 62nd Avenue
North.
August 19,2002
__~" ,~~u"_.
CITY CENTER TASK
FORCE
APPLICATIONS
Item 11.5
2003 BUDGET
Item 11.6
OTHER BUSINESS
ADJOURNMENT
City Council, Work Session
Page 2
Following discp,ss~on.~(e~~~nstis of the Council wasagamst seHingthe
property 1.0 LivingWorks Ventures. The Council noted ,us mtent to continue the
long-range goal for redeveloping all of the property on the south side of 62na
Avenue between West Broadway and Winnetka. It was detemnned that the current
property would be landbanked until further acquisition took place, m con..iunction
with the recommendations of the Comprehensive Plan.
Mayor Enck introduced for discussion Item 11.5, Motion Accepting City Center
Task Force Applications; Discussion Regarding Selection Process and Timeline.
The Council received the 19 City Center Task Force applications receIved to date.
Staff suggested that the work with the Livable Communities T ask Force be
finished prior to initiating the City Center Task Force and also indicated that it
would be 'beneficial to determine the outcome, of the school district property
situation prior to the start of the task force. The Council determined to extend the
deadline · for applications for the taskJorce until October 30 and then appoint the
task force before the end of the year. It was determined that.specific criteria need
to be. developed related to the various sectors of the community represented on the
task force. City Councilmembers were requested to submit their recommendations
on criteria to McDonald and staff will consolidate the recommendations and
present to the Council ata later date. The Council also requested that a letter be
sent to the current applicants informing them of the extension and the reasons
associated with it.
Mayor Enck introduced for discussion Item 11.6,. Review of 2003 Buctget
Proposal.
The City Manager and Finance Director presented a summary of the preliminary
budget for 2003. They ,discussed issues and problems of trying to. balance the
budget. . They also noted the state and county ,infonnation yet to be' received. The
Council discussed with the department heads extraordinary services or program
changes that will impact the budget during 2003 and 2004.
Mr. Donahue stated the preliminary budget ,. will be On the September 9 council
meeting agenda in order to certify it to the county.
Future work'session dates were tentatively scheduled for: September 16, October
7, October .21, November 4, and November 18,2002.
The Council briefly discussed the' diversity/immigration panel presentation by the
Human Rights' Commission.
~isc.ussion was' he~d. re~arding communication topics for "in the Pipeline" utility
bIll .msert, Suggestlons mcluded an article regarding the extension of City Center
Task Force applications and anartic1e advising residents of proposed sewer and
water rate increases for 2003.
Copies of the draft fireworks ordinance were distributed to the Council. Mr.
McDonald noted this would be included, in a future council meeting agenda.
Astbere was no, further business' to COme before the Council at its work session,
the New Hope City Council adjourned at 9:30 p.rn.
~,ctfu1 " I.Y....,. ~-=~)Z~
( tUU-v(~~
Valerie Leone
City Clerk
AugustI9,2002
MOTIONfNEGOTIATE
PURCHASE
Item 8,1
IMP, PROJECT 677
Item 8.2
MOTION!
EXEMPTION TO
MORATOR.IU:M
Item 8.2
ELDORADO COURT
APARTMENTS
Item 8.3
New Hope City Council
Page 3
8.2. He noted 'although the propeny, isc,ontamed within the four study areas
identified by the Livable Communities ,Task Force, he would support an excepnon
to the moratorium as there is no pending city-approved redevelopment prOject for
the subject property.
Mayor Enck cOmmented thatthe city has se"cral existing projects and lacks the
financial' resources and staffing' to proceed with this area. at the present orne. He
expressed support for pro'Vidin~ an exceptioIl to the building pernnt moratorium.
Counci1memberCollier 'concurred · with Mayor Enck. He noted the moratorium
ordinance allows excepti011Sforextenuating circumstances.
Mr.. Wade Klick, . property oWrier 'of,8U3 Bass Lake Road, was recognized. He
noted he is pleased with #Ie Mayor's recoIIlIlJ.endation as it is his, preference to
rep~thepropertytban t?sellit. He noted he. brought informa~on on prop~rties
withcomparableOlark~tval~~s bllt wiJl not peed to share the informaoon lf the
council detezmin~sto decljIleJ>Ufchase.Healsgemphasized theneed to take action
on repairs to theproperties})eforewinter weather causes subsequent property
damage.
CouncilmemberCassenCOlnmentedthat she believes this is a good oppommity for
the <;:ity to purchase the property ~ tIler; isa peveloper interested in the southwest
quadrant at Bll$s Lake ROadIWinnetka Avenue. She noted this is one of the
priority arell$ and she would like to keep it a priority. She stated the purchase price
will only increase., in ,the future. ~ouncilmember Cassen also, pointed out the long
process (over two years) it took to acquire the east Winnetka properties.
Motion was made by CouncilmeJDper Cassen, seconded by Councilmember Gwin-
Lenth, directing staff to nel:otiate a purchase for 5286,190.28. Voting in favor:
Cassen, Gwin-Lenth; Voting against: En<;:k,' Collier, Sonnner;Absent: None;
Abstained: None. Motion failed.
Mayor Enck introduced for discussion Item 8.2, Consideration of an exemption to
ordinance 03- I 7, an ordinance amending section 1.5(i) regarding the temporary
prohibition on 'aIlc011Struction and development, within the four study areas
identified by the Livable Communities Task Force, for the property located at
8113 Bass Lake Road (improvement project no. 677).
Mr. Steve Sondrall, City Attorney, clarified the difference between this request for
an exemption to the, ordinance and .the previous request 'made by the property
owner, of 5434 Winnetka. He stated the property owner of 8 I 13 Bass Lake Road
needs the exception in order to return the property to a' useable state whereas the
property owner of 5434 Winnetka .was proposing an exPaIlSionto the property. He
advised the council that action to grant the exception would pose no threat of
inconsistent treatment.
Motion was made by Councilmember Sommer, seconded by Councilmember
Collier, to approve the exeDlption to ordinance 03-17 construction
IIlOratoriuJn., All present voted in faVor. Motioncarried.
MayorEnckintrodu<;:ed for discussion Item 8.3, Motion authorizing staff to obtain
an appraisal of the Eldorado Court Apartments, 7701, 7721, 7741 and 7761 6200
A venue North.
Mr. Kirk McDonald,. Director of COmmunity Development, asked the cOuncil to
determine whether or not it is interested in a potential purchase of the four seven-
unit properties.
October 27, 2003
MOTION
Item 8.3
IMP. PROJECT 731
Item 8.4
RESOLUTlON 03-157
Item 8.4
STORM WATER
ANALYSIS
Item 8.5
New Hope City Council
Page 4
Although the city hasmanYotherpotentialredevelop'ment.projects proceeding at
this time. staft:~t~t(:tpr~~.~p.f.thisrilatterfor consIderatIon due to the fact that
die owner desires to sell the property. He stated the long-term goal of the
Comprehensive Plan is to redevelop the south side of 62Dd A venue between
Winnetka A venue and West Broadway.
Mayor Enck affirmed the appropriateness of stall staying in contact with propeny
owners of redevelopment areas' for potential sale of propemes.,. However. he
pointed OUt that the' subject properties are not connguous with .the propeny
cUrrently owned by the city. He indicated he believes a purchase at this ttme would
be premarure.
Councilmember Cassen disagreed with Mayor Enck'sassessmentand emphasized
that the subject properties are located within Planning District 2 of the New Hope
Comprehensive Plan.
Mr. Ross Taormina, property o\VIler, was recognized. He indicated although he i,s
not actively pursuing the slileof. the properties, he contacted the city as a result of
Correspondence sent by the city inquiring ofa potential sale. Mr. Jaormma
reported that he purchased the property approximately 2-1/2 years ago at which
time the bUildings werem po()rcondition. He e~plainedthat he has been making
significant improvements andre;.investment into the properties.
The COuncil e~pressed appreciation to Taomnna for '.undertaking property
improvements.
Motion was made. by"., Councilmember Sommer" seconded, by Councilmember
Gwin-Lenth, declining aDjnter~st to purchase the Eldorado Court Apartments
at 7701, 7721, 7741 and 7761 62Dd Avenue North. All present voted in favor.
Motion carried.
Mayor Enck introduced for discussion Item 8.4, Resolution ordering. construction
of and awarding contract fOr construction of the 9200 49th Avenue North regional
pond (improvement project no. 731),
Mayor Enckreported that the city received notification today of a $90,000 grant
frOIU the Metropolitan Council to be used towards the regional storm, water pond.
He e~pressed appreciation to the Bonestroo staft: especially Sherri Buss, [OTher
involvement in securing the grant
Mr. Dan Donahue, City Manager, noted the low bidder for the work was Veit &
Company, Inc. for $169,403.50. Funding for the city's portion of this project
would come from the Storm Water Fund.
Councilmernber Collier introduced . the fOllowing.. resolution . and ,moved 'its
adoption: "RESOLUTION ORDERING CONSTRUCTION OF AND
AWARDING CON1lU.CTFOR CONSTRUCTION OF THE 9200 49TH
AVENVE..NORTH< REGIONAL POND (IMPROVEMENT PROJEtT ,NO.
731)". The motion for the adoption of the foregoing resolution was seconded by
Councilmember Sonuner, and upon vote be.ing taken thereon, . the following voted
in favor thereof: Enck, Cassen, Collier, Gwin-Lenth, Sonuner; and the fOllOwing
voted against th.e same: NoOne; Abstained: None;, Absent: None; Whereupon the
resolution was declared dulv oassed and ado~te~signed by the mayor which was
attested to by the city clerk.
Mayor Enck introduced for discussion Item 8.5, Motion approving stOrm water
analysis for livable conununities redevelopment area by Bonestroo & Associates at
estimated cost of$ I 6,300.
October 27,2003
Planning Districts
District 2 is located in the
northeast portion of New Hope.
It .is bordered by Winnetka
Avenue to the west, Brooklyn
Park to the north, anq Crystal to
the south and east. Land uses
within this . area include. single
family residential, medium
density residential, ,high density
residential and commercial. The
follOwing land use
rec:ommendations are offered for
District 2.
1. PI,mnif!!;I [jl$tric;t2i;Qh!ains ol~r, loWer value. Single family neighborhoods. This
district needs specific attention to maintain 'and enhance the condition and value
of this low density Ilousil'lfl$d\.>"tbi>c:ify WiIli;Qnt~ 10 emorce its Point of Sale
Housing . .ll:'aintl!nan!:ElGode, .... how".....r. more .aggreSsive scattered site
redevelopment is recommended within District 2, as well as larger scale area
redevelopment for deterioratedp' under ~utHized sites.
2.lneIOWdensity~(~~ ~fclr;aledalong6?nd,be~h Wesl Broadway and
Louisiana Avenue,consistsof large deep lots with small single family homes: .. This
site presents an opportunity topurs~earea redevelopment to introduce more
contemporary mediumdensifyt'19usin9options into Distri.ct 2,
The medium density housingloeated a/()ng62nd Avenue, between Winnetka
AV$f1U8 artd ~ .1:l(l:lad\Yay,I1;t~:I1".o iq""lffied as iii ~dl!velopmenltargel area.
Tl1e PO?r ~&rtdSilel:Ond~io/lS~ociatedWiththismedi!Jm density use is a
negatiVe influence O"tf1eI()w density neighborhood. to the south. Aggressive area
red$velopmenliS~l!cI.D!JEll!)lI!+ li,,:,iiedsileand configuration of the site,
il is I"lll;l)mrnen(led thai" ~dIJctj"f!ir d'l'1sityfrom its~sent l:Ondjtion be made.
Medium,densityresidentia/",and9sEls.c:onsisting of twin. homes or townhomes with
attachecj garages woufdbe. anaPRropriate option.
ffi
City of New Hope
83
Comprehensive Plan Update
Development FrameWOrk
-'.
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City-Owned. Properties'( 1-6-'04)
-
1. 5340 Winnetka Ave. N.
2. 5406-Winnetka AVe. N.
3. 5410/12 Winnetka AVe.N.
4. 5420 Winnetka Ave. N.
5. 5422 Winnetka Ave. N.
6. 5500 Winnetka Ave:N.
7. 5506 Winnetka Ave. N.
8. 5518 Winnetka Ave. N.
9. 5524 Winnetka Ave. N.
10. 5532 Winnetka Ave. N.
11. 5550 Winnetka Ave. N.
12. 5520 Sumter Ave. N.
13. 5530 Sumter AVe. N.
14. 5546 Sumter Ave. N.
15. 5559 Sumter AVe. N.
16. 7601 Bass Lake Road Ext.
17. 7603 Bass LakeRoad Ext.
18. 7621 Bass Lake RoadExt.
19. 7801 Bass Lake Road
MOTION
. Item 10~
CONSENT ITEMS
REMOVED.
IM:P. PROJECT 723
Item 6.10
MOTION
Item 6.10 .
BIDS FOR PUBLIC
, WORKS EQUIPMENT
Items 6.12, 6.13,6.14
MOTION!
Items 6.12,6.13, 6.14
COMMUNICATIONS
Item 12.1
New Hope City Council
:page 7
Mayor Enck suggested greater city~wide e1iforcementperhaps tbroughtheefforts
of a 'student intem to address code violations such as unlicensed vehicles,
unapproved driveway surfaces, and trash can screening.
Ms. Pat Dobbe, 88014S~ Avenue North, ~recognized.Shenotedshehad
attended the meeting held by the . Citizen Advisory Commission and is . supportive
of the existing ordinance.
.Motion was ,made .by Councilniember Cassen, seconded byCouncibnexnb~ Gwin~
Lentb, to approve rec~DJ111en~ati()D for no changes to ~I"dinancespertainingto
storage and screening of.refus~and recyclingcontainer~. Allp,resentvotedin
favor. Motion canied.
Mayor ~ in1IoducetIfor d:iscu$ion ~ which were ~fordiscussion: Item 6.10,
Motion Authorizing Staff to Negotiate the Pote~~Purc~~of761SBass Lake
Roadforit$ APPX'aised Value of$465,000 (ImprovementPfoject No. 723).
COUllciJmerrJber Cassen express.edconcemthat the90mp~ble propemesused for
determining the market value of the property werenotrepre~entative"ofN'ew Hope
and the SllIrounding northwest suburbs. Based on this"Go1JD.cilm.ember Cassen
suggested further review by the. appraiser. .
Motion was made by Counci1n1ember Cassen, seconded by~ounci1m.ember Gwin~
Lellth, .directing staff to contact .the appraiser regartl.ing ,the comparable
properties. All present voted in favor. Motion carried. ..
ayor cintroduced for discUssion:
· Item 6.12, Approval of Bid from Aspen Equipment (or Three Underbody
Scrapers.
· Item 6.13,Approvalof Bid from Aspen EquipIIleD.t for a Bombardier.
Sidewalk Plow with a V-PloW; and .
· Item 6.14, Approval of Bid. from Ruffridge-Johnson E;quipmentCompany,
Inc. for a 2000 Gallon Flusher Water Tank. . .
Counci1member Norby asked the Public'Works Directorto.review the three items.
Mr. Guy Johnson, Director of Public Worb, ' explained that the> capital
improvement program is the process undertaken to d~tennine funding needs for
equipnrem and vehicles over a ,six-year period. He stated the three equipment items
are included in the 2002 CIP.,:H~ explained the cost effectivene$s to replace older
vehicles and equipment rather . than .making. extensive repairs. He emphasized the
i+nportance of having operational equipment and reviewed.the replacement. needs
for each of the three equipment items.
Councilmember Norby commented that during the city's annual budget process. .
the Council reviews each expenditure line by line.
Motion was ttlade by Councilmember Norby, secondc:dby Counci1member Collier,
to approve the bids as outlined in items 6.12, 6.13, and 6.14. All present .voted
in favor. Motion canied.
Mayor Enck introduced for discussion Item 12.1, Exchange of Communication
between members of the City Council:
Mavor Enck
· Expressed gratitude '. to. Lions Club and Women of Today fOf the recent Duk
Duk Daze Festival
· Commented on oppo$ition to federal legislation to preempt state and local
JuIy22, 2002
EDA
REQUEST FOR ACTION
Originating Department
Approved for Agenda
Agenda Section
Community Development
1-26-04
EDA
Item No.
B:
Kirk McDonald
/fi
9
B'
A RESOLUTION AUTHORIZING APPROVAL OF A TERM SHEET BETWEEN THE NEWHOPE ECONOMIC
DEVELOPMENT AUTHORITY AND ARMORY DEVELOPMENT II, LLC FOR THE REDEVELOPMENT OF
THE FORMER FRANK'S NURSERYPROPERTY (IMPROVEMENT PROJECT NO. 733)
REQUESTED ACTION
Staff requests to discuss with the EDA the proposed townhomeredevelopment project with Armory
Development at the Frank's Nursery site, 5620 Winnetka Avenue. A tax increment financing analysis has been
oompleted and staff/consultants have been negotiating with the developer over the past month On proposed
terms of agreement with the' city to assist with financing. The city's financial redevelopment consultant from
Krass Monroe will be present to explain the proposed terms to the EDA. Staff is supportive of moving forward
on the project if an agreement can be reached on terms. If the EDA is supportive of the project and the city
assistance, staff recommends approval of the attached resolution approving the term sheet. The next steps
would include initiating the creation of a TIF district, approval of a development agreement and starting the
planning approval process.
POLlCY/PASTPRACTICE
The City Council and EDA, consider development proposals and requests for development assistance on a
routine basis. A special emphasis hasbeE;m placed on the development of new life cycle housing types in the
Winnetka/Bass Lake Road Livable Communities area.
aACKGROUND " , 4+
The city has been discussing a potential redevelopment at this site with this developer for over one year. The
proposal is that the developer would acquire theFrank's Nursery site and construct approximately ~market-
rate town homes. In November 2003, the developer informed the EDA that they. had executed a purchase
agreement for the acquisition of the property at 5620 Winnetka Avenue North. The developersubmiUed the
appropriate fees to. the city and the EDA approved a motion authorizing a tax increment financing analysis at
the November 10, 2003, EDA meeting.. Frank's Nursery is in the process of relocating to the vacant Lyndale
Garden site on Bass.Lake Road. The developer's townhome proposal was. reviewed and supported by the
Livable Communities Task Force. Also, staff submitted a pre-development in-fill housing grant to the
Metropolitan Council for this project, . primarily to assist with developer costs, and' was notified that funding has
been approved in the. amount of $26,000.
MOTION BY
SECOND BY
TO:
1/./06
Q-5620 Wtka site 1-26-04
Request for Action
Page 2
1-26-04
Krass Monroe has prepared the. attached tax increment analysis and term sheet and.\Nill be present at the
meeting to review it indetail\NithfheEDA. At this point, there are still somenegotiationstaking place. In short,
the developer is requesting $800,000 in TIF assistance, which Krass Monroe feel~canbejustifiedfor
extraordinary site acquisition, relocation and site improvement costs.. The develo.pm....... ~nt will g. en.erate twice this
.' . '" ....." ..',',. .:', ,,', .' ',',' ..' ".... .!"..: "':":',' ." ',' ..: ....... ... .:
amount in increment and the proceeds could be pooled and utilized for other development projects in the
Livable '.Communitiesarea.
ATTACHMENTS
.. Resolution
. Term Sheet
. TIF Analysis
· Extraordinary Costs
· Map
. Preliminary Site Plan
. Elevation
""":~.~
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION NO.
A RESOLUTION AUTHORIZING APPROVAL OF A TERM SHEET
BETWEEN THE NEW HOPE ECONOMiC DEVELOPMENT AUTHORITY
AND ARMORY DEVELOPMENT II, LLC FOR THEREDEVELOPME;NT OF
THE FORMER FRANK'S NURSERY PROPERTY
BE IT RESOLVED by the New Hope Economic Development Authority (the "EDA")
as follows:
Section 1. Recitals.
1.01 Armory Development II, LLC(the "Redeveloper") has presented a proposal to
theCityto redevelop the Frank's Nursery site at 5620 Winnetka Avenue North (the "Site").
1.02 The Site is located within Redevelopment Project NO.1.
1.03 The EDA has presented a term sheet (the "Term Sheet") tothe Redeveloper,
attached as Schedule A, outlining thetermsandconditions under which theEDAiswiHing
to enter into a Contract for Private. Redevelopment with'. the Redeveloper. The
Redeveloper has indicated its willingness to undertake the project in accordance with the
Term Sheet.
1.04 It has been proposed that the EDA enter into a Contract for Private
Redevelopment (the "Contract") with the Redeveloper if mutually agreeable terms can be
reached consistent with the Term Sheet.
Section 2. Findinqs.
2.01 The EDA, hereby finds that the redevelopment project promotes the
objectives as outlinedinitsRestated Redevelopment Plan for RedevelopmentProject No.
1 established pursuanUoMinnesota Statutes, Section 469.001 et seq.
2.02 The EDAhereby finds that the Site is located in an area which the EDA
intends to include in a new tax increment financing district pursuant to Minnesota Statutes,
Sections 469.174 through 469.1799, and, as applicable, Laws of Minnesota 2003, 1 sl
Special Session, Chapter 21, Article 10, Section 10, all as amended and supplemented
from time to time.
Section 3. Authorizations.
3.01 The. President and the ExecutiVe Director (the ~'Officers"), along with
necessary staff, attorneys and consultantsforthe EDA, are hereby authorized to negotiate
a Contract for Private RedevelopmentwiththeRedeveloper relating to the Site, which
Contract shall be presented to the EDA for its approval.
Adopted by the EDA this
,2004.
W; peter Enck, President
ATTEST:
Daniel J. Donahue, .Executive Director
G:\WPDATA\N\NEW HOPE\13\DOC\EDA RE$OL AUTHG TERM SHEET.DOC
2
Schedule A
TERM SHEET
3
Redeveloper:
Authority:
City:
Redevelopment Property:
Creation ofTIF District:
City Assistance and Tax
Increment Financing:
Tax Increment
Revenue Note:
1/23/04
TERM SHEET
New Hope: Frank's Nursery
10048-13
Armory Development II, LLC
New Hope Economic Development Authority
City of New Hope, Minnesota
The former Frank's Nursery & Crafts site, 5620 Winnetka Avenue
North, New Hope, Minnesota, PIN# 05-118-21-32-0007. The
Redeveloper has the site under option and will purchase it.
The Authority shall create a redevelopment tax increment
financing district for the Redevelopment, Property (the, "TIF
District") assuming the statutory tests for establishment are met.
The Authority will properly consider and make all necessary
findings, including the "but for" finding on need for public
assistance.
The Authority will provide the following forms of assistance to the
Redeveloper:
a. The Authority will reimburse the Redeveloper in cash for
$400,000 of eligible costs upon the issuance of certificates of
occupancy for the first 22 townhomes.
b. The Authority will issue a pay-as-you-go Tax Increment
Revenue Note to reimburse the Redeveloper for up to $400,000
of additional eligible costs, payable from tax increment
generated by the Redevelopment Project.
The following terms shall be applicable' to the Tax Increment
Revenue Note:
a. Principal: shall not exceed $400,000
b. Term: 26 years
c. Interest rate: 6.75%
d. Pledge: 35% of available tax increment will be pledged for
payment ofthe Tax Increment Revenue Note.
Developer's Fee:
Profit Sharing:
Grants:
Development Costs:
Platting:
PermitslFees:
e. Date of Issuance: Upon completion of the Minimum
Improvements and submission to the Authority of
documentation of unreimbursed eligible expenses for at least
the principal amount. For this purpose, Hcompletion" shall
mean that certificates of occupancy have been issued for the
first 22 townhomes and the buildings for the remaining 22
townhomes may be.locked and secured.
The developer's fee shall be limited to 5% of the total of land
acquisition and construction costs (not soft costs).
The amount of assistan<;e provided by the Authority is intended ,to
yield a projected ,profit. (sources less uses) of 15%, with. the
developer's, fee not. counted as profjt for purposes of this
calculation. Upon completion of the . project, if actual profit
exceeds 15%, the principal amount of the Revenue Note shall be
decreased by 50% of the difference between actual profit and the
amount representing a 15% profit. The amount of any Met
Council grant shall be counted as a source for purposes of this
calculation.
l"
The Redeveloper shall provide acceptable documentation to
establish projected project costs before execution. of the
redevelopment, agreement.
The City. will apply for a Met Council grant upon receipt. of the
proper documentation from the Redeveloper to reimburse the
Redevelpper for eligible expenses of approximately $21 ,000.
The Redeveloper shall pay. for environmental remediation, site
preparation, public improvements, platting, plat amendment,PUD
and other development cOsts. If environmental remediation is
required,.. the Authority will diligently pursue any eligible programs
for reimbursement of such costs.
The Redeveloper shall re-plat the Redeveloper's Property.and the
Authority Property into the lots shown on the Site Plan. .
The Redeveloper shall comply with all applicable City building
codes and construction requirements. The Redeveloper will pay
normal permit, plan review, utility access and park dedication fees
and shall be responsible for obtaining all building, plumbing,
electrical and mechanical permits prior to construction.
2
Site Improvements:
Mininmm Improvement~:
Zoning and Land Use
Approvals/Easements:
Internal Drives:
Timing:
Business Subsidy Act
The Redeveloper shall construCt all site improvements, including:
. Buildingdemolition
. Site clearance
. Sanitary .sewer
. Water mains and stubs
· Storrri sewersandstonn water system elements, including
ponding, both on and off site
· Private streets, including curb and ,gutter
· Landscaping" and irrigation according to City-approved
landscape plans
· PedestrianiIllProvements pursuant to City-approved site plans
· GradinganqimportJexport of soil in accordance with City-
approved grading' plans
· Retaining walls and fences
The Redeveloper shall constru~t the following Minimum
Improvements. to the Redevelopment Property:
· 44 townhomes with an average sales price of approximately
$222,000 per unit.
Normal and customary site and building plan review requirements
will be followed. The Redeveloper shall pay for rezoning,
subdivision, platting, plat amendment, PUD and preparation of
restrictive covenants, easement~,' reciprocal easements, and any
other documentation necessary for the construction and sale of the
Minimum Improvements. The Redeveloper shall, be responsible
for obtaining all land use and zoning approvals.
The Itedeveloper will, in accordance with Authority specifications,
constructany internal drives on the Redevelopment Property. The
Redeveloper and subsequent owners of the Redevelopment
Property shall be respon~ible for maintaining ail internal drives.
Begin on or about July 1, 2004
Complete on or about June 30,2007
The Redeveloper shall set wage and job goals in connection with
the Business Subsidy Act, if applicable. .If such goals are not
required by the Act, the Redeveloper agrees to comply with any of
the Act's reporting requirements that may nonetheless be
applicable to the redevelopment project.
3
Relocation of Tenants:
Remedy Upon Redevel-
oper's Default:
Effect of Term Sheet:
The Redeveloper will pay for relocation services and benefits for
all tenants of the Redevelopment Property. The Redevelopermay,
in lieu of funding such services and benefits for a tenant, provide a
written waiver by that tenant. Such waiver must be in a form
acceptable to the Authority. The Redeveloper shall indemnify the
Authority for any relocation liabilities arising under applicable
law with respect to any portion of the Redevelopment Property.
The conveyances transferring the Redevelopment Property to the
Redeveloper will contain a right of reverter which will be superior
to the. rig!1ts of any liens. The right of reverter shall be released
upon Issuance of the certificate of completion for each Phase.
This Terlll Sheet outlines the terms under which the parties are
Willing to enter into a contract for private redevelopment, but does
not constitute. an offer or acceptance on either party's part. All
rights and obligations with respect to ,the Redevelopment Property
shall only be as provided for. in a Contract for Private
Redevelopment approved by the Authority's Board of
Commission.ers.
G:\WPDATAIN\NEW HOPEI13\DOCITERM SHEET V1.DOC
4
CITY OF NEW HOPE
Franks Nursery Site
SOURCES AND USES
I ....
-..,
0)
I
.
SOURCES
Grants
'Sales Revenue from units
9,791.960
100.0%
--------------_.~----------------
rrOTAl SOURCES
,
9,791.960
100.0%
USES
,Land Costs
i Land and Building Acquisition '
iAcquisition ! 615,000 '
iL.ease Buyout: I 500,000
iSitePreparationl I,
, IGeoTechnical i 7,050 i
'Gracjing: : 143,505
: Engineering " : 20,000
: !Survey i! i 14,130 !
! Demolition i! I 51,233 !
! iSite Preparation - Environmental: !
i !Testing-Phase 2 . i . 17,0501
I Public Improvements (Installation of Public UtilitiE'
IWater, sanitary sewer! i :
!Staking and Layout I ! 17,626 I
jlrrigation r I 54,053 I
! I I Landscaping : I 88,130 I
! · iLighting I! I 61,691 i
I ! iSite utilities I! I 182,136 I
: I Fencing ! I 35,252 I
I [Streets and Sidewalks i I
I Paving i I ! 73,853 !
I ISidewalklmprovements I 88,1301
I I
, I
1,115,000
235,918
7,050 !
I
438,888 i
:
.
!
i
161,983 I
. i
I
I
:
1,958,839 i
I
i 5,142,460 I
i
,
,
I TOTAL Land Costs
i
1,958,839 i
,
20.0%
I
I Construction
52.5%
I j
I Soft Costs
i Soft Costs
i Taxes I
I ,Finance Fees
I I Developer Fee
I I Contingency
906,408 !
26,500
410,601
365,000 I
150,000
I
I
,
I ; I Total Soft Costs
I i
1,858,509 I 1,858,509 I 19.0%
i ----------------- ---------------
8,959,808 91.5%
.
I I I
I ,~,-'--'f--- --- --------...- -,--
Ii I Less TIF Assistance
i......~ I ----t-,-...-- --,----".,~-..
Net Development Costs
, , ! i
, I Profit !
i
-
(800,000) ) -8.2%
-.,~.-.--__,.,.-_I ~"::;.'=="-:."'::"~__::: ______________
8,159,808 83.3%
I
i 1,632,1521 ( 16.7% )
~.....-......,l..~ "1, ,...,-.~..." C",.J.:- nCh v.l......
D..,......,.-.~...__--J h,..'/_,.....~_ I'I,"'~.,_.._
~,
~I"""""'~
Original Market Va,lues
Franks Nursery & Crafts,
Totals
Original Tax Capacity
Commercial! Retail
Rental
Owner Occupied
Phase 1
Estimated Market Value
Estimated Tax Capacity
Estimated Taxes
Estimated Tax Increment
Phase 2 (combined)
Estimated Market Value
Estimated Tax Capacity
Estimated Taxes
Estimated Tax Increment
Phase 3 (combined)
Estimated Market Value
Estimated Tax Capacity
Estimated Taxes
Estimated Tax Increment
CITY OF NEW HOPE
Franks Nursery Site
ASSUMPTIONS
Area of Parcel
(Acres) (Sq. Feet)
11212002 Market Value (Pay 2003)
Land Building Total
05-118-21-32-0007
3.19 138,761
$ 578,000
3.19
138.761
$ 578.000 $ 122.000 $ 700,000
$ 4.17 per sq. ft. for Land
700,000
700,000
@
@
@
Class Rate.
2.00% =
1.25% =
1.00% =
. Final rates for Pay 2004
20 Units @
227,596 per unit =
$4,551,920
45,519
62,526
52,720
20 Units @
20 Units @
3,126 per unit =
2,636 per unit =
44 Units@ 222,545 per unit = 9,791,960
97,920
44 Units@ 3,057 per unit = 134,504
44 Units@ 2,828 per unit = 124,439
44 Units@ 222,545 per unit = 9,791,960
97,920
44 Units @ 3,057 per unit= 134,504
44 Units @ 2,82/3 per unit = 124,439
Coverage 13.8 units per acre
Local Tax Rate- Pay 2003
State. Tax Rate - Pay 2003
Combined Tax Rate - C/I Property Only
Admin Fees
State Auditor Fee
Inflation
1.37362 .
0.54447 (C/lonly)
1.91809
. used for tax increment calculations
0.00%
0.36%
(after 2 yrs of full value in each tract)
2.50%
PV Rate - Rev. Note
PV Rate - City
6/1/2005
6/1/2005
6.75%
5.00%
S 122,000
S 700.000
7.000
o
o
7,000
84.3% of total taxes
92.5% of tbtal taxes
14.0 timesMV increase
92.5% of total taxes
~i
7./
. ---../'
YEAR
2005
2006
2006
2007
2007
20G8
CITY OF NEW HOPE
Franks Nursery Site
ASSUMPTIONS
PHASE 1
'"'
?)
'-/
Total Estimated Market Value
Commercial/Retail ('
Tech Flex 0 sq. ft. @ .70 Isq. ft.:; 0
Office I warehouse 0 sq. ft. @ .70 Isq. ft :; 0
Office 0 sq. ft. @ 90 Isq. ft :; 0
Retail - service 0 sq.ft,@ 90 Isq. ft. :; 0
Restaurant I entertainment 0 sq. ft. @ 90 Isq. ft. :; 0
Othe r 0 sq. ft. @ 90 Isq, ft. :; 0
Rental 0
Moderate Income 0.0% 0 units@ lunit :; 0
Market Rate 0.0% 0 units @ lunit :; 0
Owner Occupied 4,551,920
A RowBuilding-.A 100.0% 4 units @ 238,590 lu nit :; 954,360
B ROw Building - B 100.0% 8 units@ 231,360 lunit = 1,850.880
C Other Building - A 25.0% 4 units @ 248,690 lunit = 994, .760
D Other Building - B 25.0% 4 units @ 18.7,980 lunit = .751,920
20 units
0 sq. ft.
Total Estimated Tax Capacity
Commercial/Retail 0
Tech Flex 2.00% 0
Office I warehouse 2.00% 0
Office 2.00% 0
Retail - service 2.00% 0
Restaurant f entertainment 2.00% 0
Other 2.00% 0
Rental 0
Moderate Income 1.25% 0
Market Rate 1.25% 0
Owner Occupied 45,519
A Row Building -A 9,544
<:;' 500,000 1.00% 9,544
> 500,000 1.25% 0
B Row Building - B 18,509
<== 500,000 1.00% 18,509
> 500,000 1.25% 0
C Other Building - A 9,948
<:; 500,000 1.00% 9,948
> 500,000 1.25% 0
D Other Building - B .7 ,519
<= 500,000 1.00% .7,519
> 500,000 1.25% 0
Total Estimated Taxes
Commercial/Retail 0
Tech Flex 0 sq. ft. @ 0.00 Isq. ft. :; 0
Office I warehouse 0 sq. ft. @ 0.00 Isq. ft. == 0
Office 0 sq. ft. @ 0.00 Isq. ft. = 0
Retail - service 0 sq. ft. @ 0.00 Isq. ft. :; 0
Restaurant I entertainment 0 sq. ft. @ 0.00 Isq. ft. = 0
Other 0 sq. ft. @ 0.00 fsq. ft. :; 0
Rental 0
Moderate Income 0 units @ 0 funit = 0
Market Rate 0 units @ 0 funit = 0
Owner Occupied 62,526
A Row Building- A 4 units @ 3,277 funit :; 13,109
B Row Building - B 8 units@ 3,178 funit = 25,424
C Other Building - A 4 units @ 3,416 lunit = 13,664
D Other Building -B 4 units @ 2,582 funit = 10,329
Construction 2004 100.00%
Full Valuation 2005
Taxes Payable 2006
C......,.....L,C'" ,. I. . ~__:-. ~_. C" ;",_ nCh vl_ D.-__._ .' ~ - - - " ~ ,. .- ~
Total Estimated Tax Capacity
Commercial I Retail
Tech Flex
Office / warehouse
Office
Retail - serv,ice
Restaurant / entertainment
Other
Rental
Moderate Income
Market Rate
Owner Occupied
A Row Building - A
B Row Building - B
C Other Building - A
o Other Building - B
Total Estimated Taxes
Commercial I Retail
Tech Flex
Office! warehouse
Office
Retail. service
Restaurant / entertainment
Other
Rental
Moderate Income
Market Rate
Owner Occupied
A Row Building- A
B Row Building c B
C Other Building - A
D Other Building - B
Construction
Full Valuation
Taxes Payable
r:-~_-.'_.._ '-.' .~_ C'.... ("";._. ""'-.":'1.-.-.
.~
CITY OF NEW HOPE 0)
Franks Nursery Site
CASH FLOW AND PRESENT VALUE ANALYSIS
< ------------- ANNUAL --'-'-"------> <---------- ----------------- ---- SEMi - ANNUAL--------
(a) (b) (c) (e) (f) (9) (h)
Original Estimated Est. 1.1- Less Availab!e Cumulative
Tax Tax (d) x Admin Tax AvaiL Tax
Date Capacity Capacity 1.37362 Fees Increment Increment
(see assumptions) c St.Aud. Fee (e) x (e)~ (f) Total of (g)
2.5% Inflation 0.360% 0.00%
06/01103 7,000 7,000 0 0 0 0
12/01/03 7,000 7,000 0 0 0 0
06/01/04 7,000 7,000 0 0 0 0 0
12/01/04 7,000 7,000 0 0 0 0 0
06/01/05 7,000 45,519 0 0 0 0 0
12/01/05 7,000- 45,519 0 0 0 0 0
1 06/01/06 7,000 97,920 38.519 26,360 0 26,360 26.360
12/01/06 7,000 97,920 38,519 26,360 0 26,360 52,720
2 06/01/07 7,000 97,920 90,920 62,220 0 62,220 114,940
12/01/07 7,000 97,920 90,920 62,220 0 62,220 177,160
3 06/01/08 7,000 100,368 90,920 62,220 0 62,220 239,379
12/01/08 7,000 100,368 90,920 62,220 0 62,220 301,599
4 06/01/09 7,000 102,877 93,368 63,895 0 63,895 365,494
12/01/09 7,000 102,877 93,368 63,895 0 63,895 429.389
5 06/01/10 7,000 105,449 95,877 65,612 0 65,612 495,001
12/01/10 7,000 105,449 95,877 65,612 0 65,612 560,613
6 06/01/11 7,000 108,085 98,449 67,372 0 67,372 627,985
12/01111 7,000 108,085 98,-449 67,372 0 67,372 695,357
7 06/01/12 7,000 110,787 101,085 69,176 0 69,176 764,534
12/01/12 7,000 110,787 101,085 69,176 0 69,176 833,710
8 06/01/13 7,000 113,557 103,787 71,025 0 71,025 904,735
12/01/13 7,000 113,557 103,787 71,025 0 71 ,025 975,760
9 06/01/14 7,000 116,396 106,557 72;921 0 72,921 1,048,681
12/01/14 7,000 116,396 106,557 72,921 0 72,921 1,121,602
10 06/01/15 7,000 119,306 1051,396 74,864 0 74,864 1,1 96,465
12/01/15 7,000 119,306 109,396 74,864 0 74,864 1,271,329
11 06/01/16 7,000 122,288 112,306 76,855 0 76,855 1,348,184
12/01/16 7,000 122,288 112,306 76,855 0 76,855 1,425,039
12 06/01/17 7,000 125,345 115,288 78,896 0 78,896 1,503,935
12/01/17 7,000 125,345 115,288 78,896 0 78,896 1,582,831
13 06/01/18 7,QOO 128,479 118,345 80,988 0 80,988 1,663,819
12/01/18 7,000 128,479 118,345 80,988 0 80,988 1,744,807
14 06/01/19 7,000 131,691 121,479 83,133 0 83,133 1,827,940
12/01/1 9 7,000 131,691 121,479 83,133 0 83.133 1,911,072
15 06/01/20 7,000 134,983 124,691 85,331 0 85,331 1,996,403
12/01/20 7,000 134,983 124,691 85,331 0 85.331 2,081,734
16 06/01/21 7,000 138,358 127,983 87,584 0 87,584 2,169,318
12/01/21 7,000 138,358 127,983 87,584 0 87,584 2,256,901
17 06/01/22 7,000 141,817 131,358 89,893 0 89,893 2,346,794'
12/01/22 7,000 141,817 131,358 89,893 0 89,893 2.436,687
18 06/01/23 7,000 145,362 134,817 92,260 0 92,260 2,528,948
12/01/23 7,000 145,362 134,817 92,260 0 92,260 2,621,208
19 06/01/24 7,000 148,996 138,362 94,686 0 94,686 2,715,894
12/01/24 7,000 148,996 138,362 94,686 0 94,686 2,810,581
20 06/01/25 7,000 152,721 141,996 97,173 0 97,173 2,907,754
12/01/25 7,000 152,721 141,996 97,173 0 97,173 3,004,927
21 06/01/26 7,000 156,,539 145,721 99,722 0 99,722 3,104,650
12/01/26 7,000 156,539 145,721 99,722 0 99,722 3,204,372
22 06/01/27 7,000 160,453 149,539 102,335 0 102,335 3,306,708
12/01/27 7,000 160,453 149;539 102,335 0 102,335 3.409,043
23 06/01/28 7,000 164,464 153,453 105,013 0 105,013 3,514,056
12/01/28 7,000 164,464 153,453 105,013 0 105,013 3,619,070
24 06/01/29 7,000 168,576 157,464 107,759 0 107,759 3,726,828
12/01/29 7,000 168,576 157,464 107,759 0 107,759 3,834,587
25 06/01/30 7,000 172,790 161,576 110,572 0 110,572 3,945,159
12/01/30 7,000 172,790 161,576 110,572 0 110,572 4,055,731
4,055,731 0 4,055,731 4,055,731
"r"r"C':-"" . C';,l...,. Ii::::;\.,.-, ",I~ n~- .- ~..._ -:::.- T__ r ..
CITY OF'NEW HOPE @
Franks Nursery Site
PRESENT VALUE;i'f-NALYSI~i\f"~;~ITY AND REVENUE NOTE
""""_," -,"-'-. ""c""""",,
(a) (b) (c) (d) (e) (f) (g) (h) (I) 0)
Available P V. Rate Total Tota'
Tax Increment Available for P. V Rate
(from Cash Revenue Semiannual Cumulative Available for Semiannual Cumulative Semiannual Cumulative
Date Flow Analysis) Note Balance Balance I Authority Balance Balance Balance Balance
2.50% (b)x P-Y. of (c) Total of (d) (b) - (c) P-Y. of (f) Total of (g) (d) +(g) (e) +(h)
Inflation 60.00% 6.75% 06/01/05 40.00% 5.00% 06/01/05
06/01/03 0 0 0 0 0 0 0 0 0
12/01/03 0 0 0 0 0 0 0 0 0
06/01/04 0 0 0 0 0 0 0 0 0
12/01/04 0 0 0 0 0 0 0 0 0
06/01/05 0 0 0 0 0 0 0 0 0
12/01/05 0 0 0 0 0 0 0 0 0
06/01/06 26,360 15,816 14,800 14,800 10,544 10.036 10,036 24,836 24.836
12/01/06 26,360 15,816 14,317 29,117 10.544 9,791 19,827 24,108 48,944
2 06/01/07 62,220 37,332 32,690 61,807 24,888 22,547 42,374 55,237 104,182
12/01/07 62,220 37,332 31,623 93,430 24,888 21,997 64,372 53,620 157,802
3 06/01/08 62,220 37,332 30,590 124,021 24,888 21,461 85,832 52,051 209,853
12/01/08 62,220 37,332 29,592 153,612 24,888 20,937 106,770 50,529 260,382
4 06/01/09 63,895 38,337 29,396 183,009 25,558 20,977 127,746 50,373 310,755
12/01/09 63,89,5 38,337 28,437 211,445 25,558 20,465 148,211 48,902 359,657
5 06/01/10 65,612 39,367 28,247 239,693 26,245 20,502 168,714 48,750 408,407
12/01/10 65,612 39,367 27,325 267,018 26,245 20,002 188,716 47,328 455,734
6 06/01/11 67,372 40,423 27,142 294,160 26,949 20,038 208,754 47,180 502,914
12/01/11 67,372 40,423 26,256 320,416 26,949 19,549 228,303 45,805 548,720
7 06/01/12 69,176 41,506 26,079 346,495 27,670 19,583 247,886 45,1562 594,382
12/01/12 69,176 41,506 25,228 371,723 27,670 19,106 266,992 44,333 638,715
8 06/01/13 71 ,025 42,615 25,056 396,779 28,410 19,138 286,130 44,194 682,909
12/01/13 71,025 42,615 24,238 421,017 28,410 18,671 304,801 42,909 725,818
9 06/01/14 72,921 43,752 24,073 445,090 29,168 18,702 323,502 42,774 768,593
12/01/14 72,921 43,752 23,287 468,377 29,168 18,246 341,748 41,532 810,125
10 06/01/15 74,864 44,918 23,127 491,503 29,945 18,275 360,023 41,401 851,526
12/01/15 74,864 44,918 22,372 513,875 29,945 17,829 377,852 40,201 891,727
11 06/01/16 76,855 46,113 22,217 536,092 30,742 17,857 395,709 40,074 931,800
12/01/16 76,855 46,113 21,491 557,583 30,742 17,421 413,130 38,913 970,713
12 06/01/17 78,896 47,338 21,342 578,925 31,558 17,448 430,578 38,790 1,009,503
12/01/17 78,896 47,338 20,645 599,570 31,558 17,022 447,600 37,667 1,047,171
13 06/01/18 80,988 48,593 20,501 620,071 32,395 17,048 464,648 37,548 1,084,719
12/01/18 80,988 48,593 19,831 639,902 32,395 16,632 481,280 36,463 1,121,182
14 06/01/19 83,133 49,880 19,692 659,594 33,253 16,656 497,935 36,348 1,157,530
12/01/19 83,133 49,880 19,049 678,643 33,253 16,249 514,185 35,298 1,192,828
15 06/01/20 85,331 51,198 18,914 697,5,58 34,132 16,272 530,457 35,187 1,228,015
12/01/20 85,331 51,198 18,297 715,854 34,132 15,875 546,333 34,172 1,262,187
16 06/01/21 87,584 52,550 18,167 734,021 35,033 15,897 562,230 34,064 1,296,251
12/01121 87,584 52,550 17,574 751,595 35,033 15,509 577,739 33,083 1,329,334
17 06/01/22 89,893 53,936 17,448 769,043 35,957 15,530 .' 593,269 32,978 1,362,312
12/01/22 89,893 53,936 16,879 785,922 35,957 15,151 608,421 32,030 1,394,342
18 06/01/23 92,260 46,507 14,078 800,000 45,754 18,809 627,230 32,887 1,427,230
12/01/23 92,260 0 800,000 92,260 37,003 664,232 37,003 1,464,232
19 06/01/24 94,686 0 800,000 94,686 37,049 701,282 37,049 1,501,282
12/01/24 94,686 0 800,000 94,686 36,146 737,427 36,146 1,537,427
20 06/01/25 97,173 0 800,000 97,173 36,190 773,618 36,190 1,573,618
12/01/25 97,173 0 800,000 97,173 35,308 808,925 35,308 1,608,925
21 06/01/26 99,722 0 800,QOO 99,722 35,350 844,275 35,350 1,644,275
12/01/26 99,722 0 800,000 99,722 34,488 878,763 34,488 1,678,763
22 06/01/27 102,335 0 800,000 102,335 34,528 913,292 34,528 1,713,292
12/01/27 102,335 0 800,000 102,335 33,686 946,978 33,686 1,746,978
23 06/01/28 105,013 0 800,000 105,013 33,725 980,702 33,725 1,780,702
12/01/28 105,013 0 800,000 105,013 32,902 1,013,604 32,902 1,813,604
24 06/01/29 107;759 0 800,000 107,759 32,939 1,046,543 32,939 1,846,543
12/01/29 107,759 0 800,000 107,759 32,135 1,078,678 32,135 1,878,678
25 06/01/30 110,572 0 800,000 110,572 32,170 1,110,848 32,170 1,910.848
12/01/30 110,572 0 800,000 110,572 31,385 1,142,234 31,385 1,942,234
00:--"-"'--- ------- --~ .----~ -------..- --- ---- -----...-- ...-..-......-...
4,055,731 1,508,519 600,000 800,000 2,547,212 1,142,234 1,142,234 1,942,234 1,942,234
C';.;-, l"'Ch,.;_
PrinCipal Amount
Interest Rate
Number of Payments
Payment Amount
Interest Start Date
Term Of Note
CITY OF NEW HOPE
Franks Nursery Site
TAX INCREMENT REVENUE NOTE
800.000
6.75%
48 semi-annual payments
60.0% of Available Tax Increment
06/01/05
25.5 years
---.
i.-, }
<..!/
Capitalized
Date Interest Payment Interest Principal Balance
06/01/05 800,000
12/01105 27,000 0 0 827,000
2 06/01/06 27,911 15,816 15,816 839,095
12/01/06 28,319 15,816 15,816 851,599
3 06/01/07 0 37,332 28,741 8,590 843,008
12/01/07 0 37,332 28,452 8,880 834,128
4 06/01/08 0 37,332 28,152 9,180 824,948
12/01/08 0 37,332 27,842 9,490 815.458
5 06/01/09 0 38,337 27,522 10,815 804,643
12/01/09 0 38,337 27,157 11 ,180 793.463
6 06/01/10 0 39,367 26,779 12,588 780,875
12/01110 0 39,367 26,355 13,013 767,862
7 06/01/11 0 40.423 25,915 14,508 753,354
12/01/11 0 40,423 25,426 14,998 738,356
8 06/01/12 0 41,506 24,920 16,586 721,770
12/01/12 0 41,506 24,360 17,146 704;624
9 06/01/13 . 0 42,615 23,781 18,834 685,790
12/01/13 0 42,615 23,145 19,470 666,320
10 06/01/14 0 43,752 22,488 21,264 645,056
12/01/14 0 43,752 21,771 21,982 623,074
11 06/01/15 0 44,918 21,029 23,889 599,185
12/01/15 0 44,918 20,222 24,696 574,489
12 06/01/16 0 46,113 19,389 26,724 547,765
12/01/16 0 46,113 18,487 27,626 520,140
13 06/01/17 0 47,338 17,555 29,783 490,357
12/01/17 0 47,338 16,550 30,788 459,569
14 06/01/18 0 48,593 15,510 33,082 426,,486
12/01/18 0 48,593 14,394 34,199 392,287
15 06/01/19 0 49,880 13,240 36,640 355,647
12/01/19 0 49,880 12,003 37,876 317,771
16 06/01/20 0 51,198 10,725 40,474 277,297
12/01/20 0 51,198 9,359 41,840 235,458
17 06/01/21 0 52,550 7,947 44,604 190,854
12/01/21 0 52,550 6,441 46,109 144,745
18 06/01/22 0 53,936 4,885 49,051 95,694
12/01/22 0 53,936 3,230 50,706 44,988
19 06/01/23 0 46,507 1,518 44,988 0
12/01/23 0 0 0 0 0
20 06/01/24 0 0 0 0 0
12/01/24 0 0 0 0 0
21 06/01/25 0 0 0 0 0
-12/01/25 0 0 0 0 0
22 06/01126 0 0 0 0 0
12/01/26 0 0 0 0 0
23 06/01/27 0 0 0 0 0
12/01/27 0 0 0 0 0
24 06/01/28 0 0 0 0 0
12/01/28 0 0 0 0 0
25 06/01/29 0 0 0 0 0
12/01/29 0 0 0 0 0
26 06/01/30 0 0 0 0 0
12/01/30 0 0 0 0 0
-----
83,231 1,508,519 625,288 883,231
,- .._.....l.r ~ '.. ....- "'_~ .' r:"".._ ",...... ~~ ,,!...:.
----~---
----"--
-----
City of New Hope
Town Home Project - Frank's Nut~~Site
Extra-ordinary Cost Comparison
Option 1 Greenfield Development in NW Suburb
Land. Costs
Site Improvements
2.50 Acres
108.900 SF
72.000
3.36
$180.000
$466.892
TOTAL COST
$395,9.~4
Option 2 Redevelopment Site in New Hope
Land Costs
Site Improvements
Relocation Costs
3.19
138.956
192. 790
6.06
$615;000
$843,000
$500.000
TOTAL COST
$1,958,000
COST DIFFERENCE
$1,562,096
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New Hope Town home Redevelopment
Franks Nurserv & Craft Site
The Franks Nursery & Craft site being redevelaped by Annary Develapment II
LLC is currently beingdesignedtasuppart 44 units afhameawnership hausing.
With a cambinatian afRaw hames, End unit tawnhames, and threestary tawn
hames with shared walls.
Annary Develapment and its design andcanstructian team has been warking
clasely with the city staff to. review the design, access, and green spaceincluding
the remo.valaf 12 units afhausing fram the initial plan.
Thehausing units will be divided into. six buildil1gs, which aUo.wsfo.rflexibility in
the co.nstructianpro.cess and mare green space around each unit.
Two. o.fthe buildings will frant Winnetka Avenue and be camprised o.ftwelve raw
tawn hamesapprQximatelyl,300 - 1,600 SF each, with main entries an Winnetka
and parking at the rear o.f each unit. These units are expected to. be priced between ·
$215,000 and $225,000.00.
F aur af the buildings will be set. in the center af the site and will be phased in
during the sales cycle. TheSe units will cansist aftwo.-stary end units at
appraximatelyl,700~ 1,900 SF and three starymiddle units at apprmdmately
1,1 00 ~ 1,500 SF. The price pajnts fo.r these units will range fram $180,000.00 -
$240,000.00
The exteriaraftheunits will be amixtureo.fbrick o.r stane material, cedar trim,
clad windaws, and hardi-plank o.r camparable material siding., There will be
professianally designed, installed, and maintained landscaping thro.ugh aut the site.
The interiar Qfthe units will be pro.fessio.naUyclesigned interio.rs with upgraded
standard finishes. Same af the finishes include:
· Pre- engineered hardwood material
· Design selected lighting package
· Prafessianalpaint pallet
· European custom designed wo.o.d cabinets
· Energy efficient stainless steel appliances
· Natural hardwo.ad millwark
Amlary Develo.pment and its team are excited about bringingthishigh quality
development to. the city afNew Hape.
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EDA
REQUEST FOR. ACTION
Originating Department
Approved for Agenda
Agenda Section
Community Develepment
/-.., .\
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1-26-04
EDA
Item No..
B: Kirk McDonald
Ite,,!
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10
UPDATE ON POTENTIAL REDEVELOPMENT BY BEAR CREEK CAPITAL AND CVS PHARMACY
(IMPROVEMENT PROJECT NO. 754)
REQUESTED ACTION
Staffrequeststogive the EDAa brief update on the progress of the potential redevelopment by Bear Creek
CapitCilI Cilnd CVS Pharmacy at the southwest quadrant of Bass Lake Road and Winnetka Avenue.
POLICY/PAST PRACTICE
Staff routinely presents updates to the City Council er EDA on the progress er. status of petential
redevelopment projects.
BACKGROUND
The city hCilsbeen coordinating with Bear Creek Capital/CVS Pharmacy over the past eightmonths regarding
a potential redevelopment at the southwest quadrant of Bass Lake Road and Winnetka Avenue. The
redevelepment weuld be in two phases, with the first phase involving the censtructionof a CVS Pharmacy
store andanciUary retaildevelepment. The first phase would include the acquisition by CVS of thre,e parcels in
the area: A residential property at 5539/5549 Winnetka anda commercial property at 7901 Bass Lake Road.
Appraisals ef all three parcels were completed in October 2003, and at the October 27 EDA meeting, the EDA
autherizedstaff to. meet with the develepers and the property owners to facilitate inthepetential, preperty
acquisitien. The intent of this report is to update the EDA on the actiens that haVe taken place over the past
three menths.
Please refer to. the attached correspendence from CVS. the legal counsel for Sinclair Corperation and the New
Hope city atto.rney fer a detailed update. In shert, the status of the proposed redevelopmentisasfo.Hows:
Propertv Acauisition Status
5539/5549 Winnetka - ,A successful meeting, facilitated by the city, was conducted between the property
owners and thedevelqper and correspendence has been exchanged outlining the terms of a purchase
centract.
MOTION BY
SECOND BY
Request for Action
Page 2
5-13-02
7901 Bass Lake Road - Sinclair Corporation has not been willing to meet with representatiyesof the city or
the "developer up to this.poi~t.The~ttorneYTepre~enting9inclair requested Gldditional..informationonith~
project, which the city provided, and they are in the process of having their own appraisal completed;$i'1<;:lair
has indicated that they would meet with the, developer and city once the appraisal isdone, More r~cently, there
has been some direct negoti~tion between the developer and, Sinclair. City staff has indicated it would much
prefe,. 'rthaithEf developer'acql..lirethe propertyvoIU,.,nta,.' fily onaWHlin, 9 seHer basis.
., ,".,. ....' ....,. .... .. .:',", ,',""'. .,......., ,.1, ',',. . ,', ......... .
Site Selection
. CVS has il'1dicatedthat this is its first choice for development in the New Hope area.
Ancillary Commercial Development
CV$ has b~gun to actively market its development to other commercial users and are close to reaching an,
agreement with a casual dining establishment. .
Site Plan
Once the property acquisition process is better defined, a more detailed site planning processwill begin, which
will include a review of the area storm water analysis and discussions with adjacent property owners, including,
District 281.'
Timeline!
It is the intention of CVS to start construction this spring if the property can be acquired and other approvals;
received.
Miscellaneous
If the redevelopment would proceed, the city would want to examine the potential of creating a new tax
increment financing district to capture the increased value ,of the redevelopment for use on otheq
redevelopment projects in the Livable Communities ' area.
ATTACHMENTS
· Map
· Correspondence
Re: Winnetka-West Commercial Development Update
Dear Kirk,
The following is an update of our progress with respect to the Winnetka-West
commercial cievelopment, at the south west, comer of Winnetka Blvd. and Bass Lake
Road:
CVS Pharmacy
CVS remains fully committed to the project.' Although other properties in the area have
been and continue to be investigated as backup opportunities to Winnetka-West, this
property remains' CVS's, fIrst choice.
Prooertv Acquisition
You will recalLthat the city authorized the preparation of appraisals for certain properties
to be incorporated into the redevelopment of the area referred to as .the Hostennan
RedevelopmentArell by the Livable Communities Task Force." Three 'appraisals where"
prepared in September, 2003. Two of the properties are owned by the Bauer Family and
One is owned by Sinclair Oil. Your offIce forwarded copies of the appraisals to each
owner with a request that a joint meeting be held between thee owners, the city and Bear
Creek CapitaL The purpose of the meeting was to describe the city's interest in the
redevelopment of their respective properties and to hopefully facititate discussions
between the owners and Bear Creek leading to agreements between the parties for
friendly acquisitions of the properties by Bear Creek.
I am happy to report that progress has been made in this regard. Letters have been
ex.changedbetween Bear Creek and the Bauer family outlining the tennsofa contract
and offers have been made to Sincair for the purchase of the property;
School BoardProoertv
You have shared with me that discussions have taken place with the school board
involving some improvements that may be made to the Winnetka Elementmy School
property, inunediately south of the Winnetka-West commercial property. As an element
of these improvements, a storm water management facility could be constructed
somewhatsoutbwesterly of our site. This would be a positive development from our
perspective. This method of controlIingstonn water runoff would not only help the
community as a whole, but would allow all of the future occupants of the redeveloped
area, inClUding ourselves, to share the use of one common facility. Several of our earlier
site plans ~four development envisioned a storm water management pond on the
southemportion our development, on vacantIand currently owned by the schools. Your
proposed stonnwater management solution would minimize our impact on school
property. Your location is also a much more logical placement given the local
topography.
As I told you last week, given the narrow nature of both he Sinclair andthe Bauer
properties, we will need to acquire a portion of the school's land. I will shate with YOll a
site plan scheme that minimizes the impact and would allow for a "land swap" between
ourselves and the schools of an area less that Y2 acre in size that should have no monitary
impact .oneither party. I am hoping that you will lend your assistance in faci litiating
these discussions between Bear Creek and the schools.
OtherCo.mmercial. Uses
Consistent with the vision of the Livable Communities Task Force, the Winnetka-\\' est
commercial development is intended to anchor the comer of this development. We have
chosen to develop the commercial area in two phases. The first phase willincludethC'
13,000 sCjuarefoot CVS Pharmacy and approximately 2.500 square feetofassociared
retail. The second phase would extend to the west at such time as the adjoining parcd.
commonly known as Hardware Hanks, can be acquired. Our intention would beto
design the first phase in such a way as to facilitate the flow of traffic and infrastructure
between the parcels if and when the second phase comes to pass.
We have begun to actively market the development and are close to making a deal with a
casual diningestablisbment. We expect a tetter from the prospective tenant thatlintend:
to share with you on a confidential basis.
Site Plan Approvals
Given the progre~s described above, I would like to initiate the site plan approval process
though your office as quickly as possible. It would be our irttentto acquire the properties
and to break ground in the spring and to open the development before the end of 2003.
We look forward to working closely with you and your staff over the next several week
Please call if I can help in any way.
Sincerely,
William J. Tippmann
Vice President
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LEVANDER,
GILLEN &
MILLER,P.A.
ROGgR C. MILLER
TIMOTHY J. KUNTZ
DANIEL J. BEESON
ROLLIN H. CRAWFORD
KENNETI-lJ.ROHLF
'TONE1TA T. DOVE
. STEPHEN H. I'OCHLER
-JAY P. J<ARLOVICH
ANGELA, M. LUTZ AMANN
.KORlNE L. (.AND
ANNe. O'RgILLY
.DONALO L. HOEFT
DARCY M. MOHR
ROBIN M. HENNIX
JON R. STECKLm
ATTORNEYS AT LAW
Mr. Kirk McDonald
Community Development Director
City of New Hope
City Hall
4401 Xylon Avenue North
New Hope, MN 55428
Established ill 1929
November 19,2003
HAROLD LEVANDER
1910-1992
ARTHUR GILLEN
RETIRED
VIA FACSIMILE
AND U.S. MAIL
. ALSO ADMliTE.O IN WISCONSIN
..ALSOADMlTTE.DIN NORTH DAKOTA
RE: New. Hope Livable Communities Project
Winnetka. Avenue West Study Area and. Sinclair Oil. Corporation Service Station
7901 Bass Lake Road
Our File No. 18675. 13000
Dear Mr. McDonald:
As you will recall, I represent Sinclair Oil Corporation, Inc. I have been asked by Sinclair to
respond to your Noveml:>er4, 2003, written correspondence to Craig Anderson.
First.
Second.
Please direct all further communication' and correspondence regarding this
matter to me.
During our meeting on December 2,2002, I pointed aut that the 1.0+ acre
Sinclair parcel is strategically located at the southwest comer of Winnetka
Avenue and Bass Lake Road. I also indicated that Sinclair intends to
maintain its property i.nterests at this location.. It was my understanding ,that
the City of New Hope was open to' incorporating Sinclair, as well as
Sinclair's present use and future state of the art gas/convenience store
redevelopment plans into the overall redevelopment project. Therefore,
Sinclair is both greatly surprised and perplexed at the suggestion that the
Sinclair parcel be taken out entirely and conveyed to a 3rd party
redeveloper.
633 SOUTH CONCORD STREET. SUITE 400 · SOUTH SAINT PAUL, MINN~OTA 55075 . 65I-45H83I . FAX 651-450-7384
OFFICE ALSO LOCATED IN SPOONEQ, WISCONSIN
~.-..
:i>
Mr. Kirk McDonald
Page 2
November 19, 2003
Third.
Fourth.
Fifth.
Sixth.
As I. previously indicated to. you, Sinclair has in the past and will in this
instance rigorously protect its interests in its private property and .will
aggressively resist and challenge any attempts at forced acquisition of the
, .parcel. through eminent domain.
My clientis not opposed to .a face..to-face meeting to discuss the City's
plans, as well as alternatives to meet Sinclair's objective of protecting its
property interests.. However, I would first .ask that you forward .to 'me a
copy of the appraisal that Was. prepared for the Sinclair parcel for review.
I also want the opportunity to review all of the City files, documents, and
records relating to this proposed redevelopment project,.the New Hope
Livable Communities Task F()rceand Project,Winnetlca Avenue West
Study Area, as. well as the Bear Creek Capital, LLC and CVSPharmacy
proposal.
Finally, let me reiterate that Sinclair's overriding objective is to maintain its
property interests, as well as this integral part of its regional fuel
distribution system in this . market area. Therefore, Sinclair wants the
opportunity to. be incorporated in. any redevelopment and be placed in an
equal or better business location to what Sinclair currently uses and enjoys.
......... >. .~. lb. :~p.e::Ls':. ::t~:;e~~i~::u"fe':n:::,ie:;~=~ =~:~~~;~ew, as well as
Ive~ rIYY:~1
C DanielJ. Reio
f
DJB/so
c: Scott' Mayeda, Esq.
Steve Heil, Real Estate Manager
Larry Feldsien, Engineer
I
DoUGLASJ.DEBNERZ
GORDON L, JENSEN1
GLENA.NollTON
STEVEN,A. SQNDR,\LL
STAc\"A. WOODS,
OF COUNSEL
LoRENS Q. BRYNESTAD
I Real Property law
Specialist Certified By
The Minnesota State
Bar Association
'Admitted in Iowa
JENSEN & SONDRALL, P.A.
Attorneys At Law
COYfP>Y
8525 EDlNBROOK CRO~SING, STE, 201
BROOKLYN P ARK, MINNESOTA 55443-1968
TELEPHONE (763) 42~8811 . TELEFAX (763) 493-5193
e-mail law@jensen-sondrall.com
November 21, ,2003
Daniel J.. Beeson
Attorney at Law
LeVander, Gillen & Miller, P.A.
633 South Concord Street, Suite 400
SouthSt.Paul, MN 55075
VIA FACSIMILE TO (651) 450-7384
AND BY REGULAR U~S. MAIL
Re: New 'Hope Livable Communities ProjeCt
Sinclair Oil Corporation Service Station
7901 Bass Lake Road .,
Your :File No.: 18675,.13000
()l1r FileNo;: 99.11289
Dear Mr. Beeson:
I am the New Hope City Attorney. ,Your November 19, 2003 letter to Kirk McDonald,
Community Development Director for the City, has been referred to me for a response.
The City is in the process of complying with your information request set forth in the Sh
paragraph of your letter. It is my understanding this information will be available to you
sometime' next week. I will let you know when you can review this information at the
City.
The City is very interested in meeting with Sinclair 10 discuss ,this, proJect., Welook
forward to a face-to-face meeting for that purpose as indicated in your4th paragraph.
Finally, Mr. McDonald has requested me to ask you if you wouldn't mind directing all
your future inquiries concerning the City's interest in developing the Sinclair site at 7901
Bass Lake Road to my attention. Again, I will. be in contact with. you' shortly when the
information you requested is available for your review. In the meantime, please contact
me if you have any other questions or comments regarding this matter.
Very truly yours,
~&~
Steven A. Sondrall, City Attorney,
City of New Hope
JENSEN & SONDRALL, P.A.
sas@jensen-sondralJ.com
After HOUTS Extension #147
cc: ...kirk McDonald, Community Development Director,.City of New Hope
P;IAttomey\SASILctteI$ICNH99.11289-001_Atty Beeson Ltr.doc
DoUGLASJ. DEBNErt2
GORDON L. JENSEN1
GLEN A. NORTON
STEVEN A. SoNDRALL
STACY A. WOODS
OF COUNSEL
LoRENS Q. BRYNESTAD
'Real Propeny Law
SpecialistCenified By
The Minnesota State
Bar AS$()Ciatioo
'Admitted in Iowa
JENSEN & SONDRALL,<P;A..
Attorneys At Law
8525 EDlNBROOK CROSSING, STE. 201
BROOKLYN P ARK,MINNESOT A 55443-1968
TELEPIIONE (763) 424-8811 .TELEFAx (763) 493-5193
e-mail law@jensen-sondrall.com
December 9, 2003
Daniel J. Beeson, Esq.
Levander, Gillen & Miller, P.A.
633 South Concord Street, Suite 400
South St. Paul, Minnesota 55075
VIA FACSIMILE TO (651) 450-7384
AND BY REGULAR U.S. MAIL
Re: New U:ope Livable Comnmnities Project/Winnetka Avenue West Study Area
and Sinclair, Oil Corporation SerVice Station
7901 Bass Lake Road
Your File No,.: 18675.13000
Our File No.: 99.11289
Dear Dan:
In follow up to our December 5, 2003 letter, it is the City of New Hope's desire to meet
with you and your client to. discuss the redevelopment of the ,property located at' 7901
Bass Lake Road on which your client curren.tly owns and operates a Sinclair Gas Station.
It is my understanding from our convetsationyouand your client would be willing to
engage in such a meeting. Also at the meeting would be representatives ,from Bear Creek
Capital 'Corporation ,representing CVS Pharmacy and New ,Hope's Community
Development Director Kirk McDonald.
1 know. that our ComrnWlity " Development Direttor is interested in arranging such a
meeting prior to the end of the year. Please 'let me know available dates you and. your
cIientcould meet with the City and representatives from Bear Creek CapitalandI will be
happy to arrange this meeting.
Also, please feel free to contact me if you have any questioIlS concerning the' information
provided to you in our December 5th letter or have any further requests for information
from the City. Thank: you for remitting your payment to cover th~photocopying cost of
the City as well.
I will. look forward to hearing from .you regarding our potential meeting.
Very ,truly yours,
~~.
Steven A. Sondrall, City Attorney,
City of New Hope
JENSEN &SONDRALL, P.A.
sas@jensen-sondrall.com
After Houts Extension #147
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DOUGLASJ. DEBNER1
GORDON L.JENSEN'
GLEN A. NORTON
STEVEN A. SONDRALL
StACY A.WooDS
OF COUNSEL
LORENS Q. BRYNESTAD
'Real Property Law
Specialist Certified By
The Minnesota State
Bar Association
'Admitted in Iowa
JENSEN & SONDRALL,P.A.
Attorneys At Law
8515 EDINBROOK CROSSING, Su. 201
BROOKLYN PARK, MINNESOTA 55443-1968
TELEPHONE (763) 424-8811 $ TELEFAX (763) 493-5193
e-mail law@jensen-sondrall.com
January 16,2004
VIAE-MAIL TO kmcdonald@ci.new-hoDe.mn.us
AND BYREGULAR U.S. MAIL
Kirk McDonald
Community Development Director
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re: Acquisition and Development of Sinclair SitelWinnetka and Bass Lake Road
Our File No. 99.11289
Dear Kirk:
This letter will confirm our January IS, 2004 meeting withBiII Tippman of Bear Creek Capital
Development Corporation · concerning the proposed CVS Pharmacy redevelopment at Winnetka
and Bass Lake Road.
At our meeting, we discussed my January 15th phone conversation with Dan Beeson, the attorney
for Sillclair. Me. Beeson advised me Sinclair was obtaining its own appraisal for the Winnetka!
Bass Lake Road site. Further,Si~,clair ,is wiHingto meet with the City and Bear Creek Capital to
discuss the acquisition of their site for the proposed CVS.redevelopment,however they wish to
delay the meeting until their own appraisal is completed. Therefore, it appears we may be
looking at a February/March meeting with Sinclair in that their appraisal probably won't be
completed until such time.
Mr. Beeson also reminded me Sinclair will not be a willing seller of this site and has a strong
desire to maintain this site as a Sinclair facility. However, Sinclair may be willing to part with
the site, if CVSPharmacy is, willing to pay the kind of price Sinclair perceives operators like
Walgreen's are currently paying for land like the property at Winnetka and Bass Lake Road.
Basically, I wastold Sinclair believes this property is worth $20.00 $25.00 per square foot.
January 16, 2004
Page 2
Pursuant to our discussion with Bill Tippman, on January 15th, I, will continue to contact Sinclair's attorney to
arrange this meeting as soon as possible.
Please let me know if you want me to do anything further or if you have any other questions in connection with
this matter.
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Very truly yours,
~
Steven A. Sondrall; City Attorney,
City of New. Hope
JENSEN & SONDRALL, P.A,
sas@jensen-sondrall.com
After Hours Extension #147
P;\AnomeyISAS\2 City of New Hope\99~112891kirk IUOOS.doc