Loading...
012604 EDA - OFFICIAL FILE COpy -- ~ 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) ~ 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 ""'---....... , ;.fi'\ . I / B.,,- "-l 4 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: 1 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 2 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: 3 """'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). ~t "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. 4 "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. 5 "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 6 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. 7 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, 8 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. 9 (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 10 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). ' . 11 -^-,~ 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. 12 (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. . 14 (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. 16 (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 18 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, 19 - , 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. 20 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: 21 -.. 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. 22 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 ,i ~ ~I... ," , . - - - . - - . ~ ~.::.:.: ~ ;:..:.:., i . cu.,,1 r i.., + p;f' . . . ;j1;11 .~I!1 -~ - - - :;:. .: ~ --->:;;. % ~l.':I'" . - Jlj !miI!I!!il!!!!! i.J<3, .0 '?~.::O..j;i.-$g =!-i ! ~ jmw ~i~HH mm lH!ii HEH ~;H;i '.;- "0. m .'; ill ~ ~: j~ t;~ iH ? t j . ~ : ;;H ~;; ~: ' m ~;~ illl ~h! !lJi :;lU ,;Hi~; ~~l a:!h 1.1I. 'Ii Ih.. ..~i.* :ii... .*... :;1 i: r ~ -.:YI:l.II-llfifssYl- ,'- ;/1' ....iI i" i H d ~~i m t:! m i.:i ~H '~~ ,I ; ., ~ ! . 0 ~ m <( f'--.'(/)I- ~ZO '--'" <( (/) z--lw wo...z w>-z Ct:Ct:.~ c.?<( <(zw- ~~o... 1---10 ww::::r: ~~~ 3: w z \ I , ~I~-- 1..,.....--- i- t - - .- .........: =- ....- '--1 ;; :; ! --' I ...... ---.-r - "'.. 1- I :- i I I I I ~' ~! i' I' I I I I r-- ~-- I - f- W '*' Vi ct: W > o u rh ----{-1- U1 W ::; o :I: Cl Z "" >' ct: ., <:::~;;~' I_R-~ " " o , f ~ I-z~ W<(..J i!..Ja. Vla.", o::>-~z w!=o<( >=:!<(..J 01-0::0.. U::l'" W >->->-0.. jx ~~~ C5 ZZZVl ---0 ~~~z -..J..J..J<( I-Www..J 0:: a:: a:: a.. a.. a.. ' I . . .1 ....NI")...J 6L u Cl w r-: ,,- -- ","",!--,. -_.-- 0.... N33Cl~ V>ll3NNIM .... '" J'l ..,. ~ <( a.: ,..,. -- "iJ 2: ...:..J -:: ~ "- .~ ~ 7j ./ .- .~ i . I 0;- r- Z <oJ <oJ ct: '" "" '" w Z z liE :g " '" 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 :J C Cll ~ 1 Cll 55th Avenue c 8 CD Cll :J 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 . . --"-'~-".....~I i . ~11T.-f'f:~ . _ ..........;'lo; '__.. ..__ ..",\..... 55.38 !2~! ~;U) "J"" 1 .. . .. ~n It') ~ ~:; 0 i 7615 ! ;}'~:e( ; I. : \ :!:. l 1", ',: . . I ,'.' .._..';......-_._......J N"'"f -_... -....-... ..-.. - - , .. ...-:: t , . _I} I - - 730 - - - - 5519 . --r-........;..~~ _......-"...,..... '..-! , l : 8' :.~ ..; ! , N; ~'---~ ,...; .,: . ,....t ,...i ./ nos i , ~ . 7608[ ".-'.'s5TFf--...--.---AVt---N ...~..... ~.._.. ",' .;..-.... -- ---. ' ........ -- -- --,'- ...-.... ... - ': . , ~ ,- .: : ~. 5444 ~ 5437 ~ f 5436 j~37 ; .. . '." ,- '.:. : . t.. ....-. .~......_....-.....i f.......... ~....;..._................I 543? ~z f5438 .~.5433 ~:zJ M34 ~ 5433 f -----......-.~ ,'. .... .....-....... ...---.........l _ . ,~~-----~......--...,:r-l 5429 jl.Ll! 5428' -~S.29 i W ~ 5430. i5429 ~ ..__...._~....:i~...___-....J.__.___.; >;_.____~-,..-_..: 5421 ~ .t M26 ~. 5421 ~<~ 7150& J 542Si J' -, !".' ." o' "Sf"- .----...-RApHAtt..;..--... -.: ~... ...... --I ~ 54J6-- . ...... t............ .-.... j,M32_ , . ~..... .._-......... ; &..6 "V\ ..... ; ~-- ;-;.;;1- -OR-:"- .~-... . . 5509 I , .....1 .............- ....----.....-..... , 5440 5434 . . 5423 ~ , . ........--.....-..... ....-.. .......-... ...... ,. ! i 5420: 5425 5417;. . . t .... ~~.. .--.....+....-............... .-;;1..3~; a::: ~ SC-14 ! 5413' ~ 'LaJ1 a .....t ~ . . .. oi. ... oi . f---.,...- -.. ---..---............ .... . "5:w9- r~ i 5406i 5409' :~ : :- .P ;...." .............. . ~-............._...._- ....'5401 '1(/) i 5400 i 5401 f ;; ,...:- .. .. . ~ -.--....-....... --.................t ....____....___ 5325 j ~ . 5330 i 5331 J City-:-Owned Properties (1-6-04) ..-.: . i ........ - --5319.'~ ._. ....... .... _...~ .0". ....._........~: 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 ~oad -. l , . . ~ t I:) ; ,. _'~L CD .! ... !'-.,...,-,... ~. : G:) . : ._-. .....; ,,: .. f I ~".:CI)I : '-..J .' 0 :' 5307 ' . f<<lj ; ,---...- ,,~ ~: J..........". ,= . -. . ".. .....~.. . .. 1825 'j". ...: ;" l $ """~ .~. ..:~ 7800 .: :--.-.----: '''u~.. , ~ 5218 ;, _ ...... ~'^"_. : ,!i .......-....:.. i ....... . i 531:;-'"7 ~ 5324.;' 53J 1 } t . : : 40, ; r ...----.-.-..........~ D.. ..._~ I 5318 ~ 5325 ~ . \ .. . " ..:...... ...~....,. ....... ...... ............. , , . .; 5312! 5319.! . 1 ! i .".' -.........~.~ ................-~..:. i. ,,- .' ; 5306;' 531.3; , j' } .""""'..... .- ~ ... ;;. .0 ,..... ,. ....... '- j R r.~(.. 5307! ,~ , ~ 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. 6 7 8 Q 10 11 12 13 14 15 16 17 "0 19 20 21 22 23 24 25 20 27 28 29 30 31 32 33 34 35 30 37 30 30 40 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] . . . ._._... ~__ ... 41 4:'< 43 44 45 46 47 48 49 50 s. 52 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 53 54 :;;:;; 56 57 58 59 60 61 GG 67 68 1)9 70 71 72 73 {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) 77 78 79 80 61 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. 87 88 ,,., gO 91 92 93 94 '''' 96 97 98 10. CONDITION OF PROPERTY. 09 100 101 102 103 104 105 106 107 108 100 110 111 112 113 114 11-G 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. 116 117 1111 119 120 121 122 123 124 125 126 1zr 128 120 130 131 132 133 134 135 136 137 138 139 140 '41 142 143 144 14..") 146 147 148 140 Hio 151 152 153 154 155 .'56 157 158 159 160 161 16.2 163 164 100 166 167 168 169 170 171 172 173 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 3 174 175 178 177 178 179 180 181 182 183 '184 1 a!; 186 167 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 206 209 2'0 211 2'Z 213 214 215 216 217 :.118 2'9 220 221 22.2 223. 224 225 22" 227 228 229 230 231 232 233 234 235 236 237 236 239 240 241 242 243 244 245 20'\0 247 248 249 250 251 252 2fi3 204 255 258 257 255 250 260 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~. 261 262 263 264 265 266 267 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. 269 270 271 272 273 274 2.75 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 {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 - '''?~ I \\ .;:., ~t .' "1:' "1' c'.., , ,",,' t~" " - :.' :~',~, - L:. :iA\ ~~~-; 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 SUBJECT PROPERTY STREET SCENE I I i i i I I I I " J BOI'I'CIWer:NIA AddresS: 5400Winnetka Avenue North rCity.New.Ho~ St:. MN Zip: 55428 r'lieNC ~v l'.....J.""t; CaseNQ .Lender City of New Hope/Ken Doreskv ;',,;.1 ----.... "'<' ~:: -...;: ~..;.- --'1... .._'~ ~"\~;;." :-l"'~~ - -'. "'~'*~:'~ ..,:.-~~:\;.;~;: '^~Y";'~~' II"! '"1- ;~ ........ ~.t1............ ..... ',....................1.. ........ C'. . .....-: L~ io,:"." s-. ,. '1- ",""". ~. ...,.g ~~'''; t."..;._,~.'r;...._.,u-#'.,,~ ,... .';. . L. ,;.. ....~~. : .f"- \ Y ;~..\/~f:i~ ...,'c"" "x." .,. .1. ....{ '1. ''l--~'~'. \\.~t ~,.~ < \i, t'~ :'-Z-I.J- , .~:r,,!; . ," ~ , L..H ;; .'1,' \.: -)::: .. -..-........ ". h.'. . . , ..t -~ Iii' .... ~. ~ -- ---- ~ ........ ---- - ...: . . '- ..;.... I. -0 f,. =. ... ....~ -- 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 '<:",.:..;",,""-" ;'11<1 l\iC Case No. Lender ... )JI~:'u~I.l ; ... ~ . t:~~':-~:{'~!,~._.~jb;ii k::-.~=' -.. ~. ~ ... + ;~ ~~'. . .........L .' . ~ -~~ -....sJ1:. .,.~: ,~~'>t;.. . "-:"NLt,.! :-:"'~~~'~v~~~..;.?-:. ..l.......... .... . .-J,->>~" ~ _<'t:.' ... ::r' .,..... . .. i I i , --i I I I I Zi :5S428 rue",,,- ;.)v IL\J")_:'" Case No. lender: Crt ~~.~- - -r_ .Ii ~iJj ''l fIW- "" ... ..-.. _..' - -.. .. ....,.1 ,. , ',,"- -~I}';' . ... ": ::~lf;~:~ ~ .t!tl 16.0' Bedroom b c:i .... 26.0' Bath Den b ci ~ Living Room Dining b ,...: 16.0' i SUtchI>)' """" IV WindQws.... AREA CALCULATIONS SUMMARY Code DosctIpIIon _ CILU "uat I'loo.r 15"'.00 lIllII __ 312.00 TOTAL LIVABLE (JOunded) FLOORPLAN Bedroom Bath Kitchen 34.0' T_ 15110.00 312.00 1598 State: MN b -.i 16.0' File No 30120326 Case No Utility Garllge 8.0' 12.0' ZIP: 55426 12.0' b co N LIVING AREA BREAKDOWN --- au_II I'uat ,1'1.00z: 16.0... 40.0 a..o z 26.0 23.0:11 26.0 .'.0 Z 1S-.0 "0.,00 208.0-0 5" . 00 152 . 00 1598 222 EAST LITTLE CANADA ROAD, ST. PAUL, MINNESOTA 55117 (612) 486-9550 tFAX: (612)486-9732 Laundry Mud Room b Pantry ,...: 4 Areas Tolal (rounded) -I.~- . - . " '----, ""'.=tIT-.Tn-"'S$n-1''AV"E-'-'N -....to Iii - -. -........... ........... -.-. . ..._~ i . - - I - - 7301 - - - - .'~,: ~ ::~ ii ::, ~ ~;. It) I ~;; i': 7615 ! :r "i I I. '. , ;::! l JI"".: , ..1: .._..~._ .-_..--.......,.J . --.~ . ~ ! - ......--.........--:: . , ...... ~ . 5519 I . . . __._......__...iIJ , , , r . 8r :4; .;...----~ ,..., G; .... ~ ,... i /7708 i 7608; .:, .=.. ,~ .1 .:',"., '! ....._.S5tH.--'----A\iE'--N ; , 5509 _.J ~- .---.1 : lIE... "It~ . :. ~-- . ...... t..__.......,.. .-..... ~. M32_ , " ~... .._--..... : lIE... "U\ .... ; ~..... rS4ii1. II -OR-:"- ,..----.- ............-.........-." .,.............- --. ........~- .......,~.....'.............-'. . " t ' . f 5444 t 5431 i t 5436' i 5437 { :' ;' "~. .'. ; t.... .-....... .~......_._.-.......1 r-....... .....--!...............-.J 5437 ~Z ~ sea ; 5433 i i &434 ~ 5433 ~ ~ ~ : ; Z~ !,; ................; , ~.......~;-: ~.-:-~...........~, ~--~/--.......---, M29 }LaJ 1 5428 .~ 5429 f I.&J~ .5430 i 5429 ~ .._.......-..~~ ;..--__.....l.._.____ > r-."---~"'.~-- ..: 5427 ! ' ~ 5426 ~ 5427 ..~ < ~ 7e08J 5425 1 l' :, I .!: . ." "Si"~ .--'----RAPHAEl.;"-' -.: 5443 : 2 . i . t .. f ! i , .-" .~.t ( - , 5423 r ..........-.... ....-....- -...' ...... .-. .. ..... , ' ~1'; i 5420 I 5425 . ,- . ~ ~.........' --......+.................... --Sii-3:fffi J ~14 j 5413: . ,..... ,..-. .....-.........,.....,-.... s:.oi r ~ ~ 5406 i S409 . =~ :; ...' : -' ~- .-....'.....-..-...-.... .'....540, .~(/) i 5400 ~ 5401 f . r I : . , ------........ ------.., ....---.---.; 5325! ; 53.30 j 5331 ~ . ._; . 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 Lake Road Ext. 18. 7621 Bass Lake Road Ext. 19. 7801 Bass Lake Road -'---.~-...- 5319 ~ -.-..._-~-,.- -.--... ~ 5324 ;' 5331 ,f ! " , :: ; r'..---'-'-.....--........,.. ..-~ 1 5318 J 5325; ~ .. .....-..---: 5313 : I. " ,!; ......-.r:. I:) ; ; -'~. CI) 'f ... !.-- ................ ;. " { Ie /fO r . --.'7 .............1 : 0 /'5307; . f" J f .--...- '" '" ,-,,_.. . . -. . "'- ~ ,.......... ~ ~ 7825 :; ......... .;.:. J 7800 :' .------ .. u~. ~ 5218 ~ ......, ~~. .:' L__._._~'" i-- V ..-...~. : ; = :' "- , . .:..... ......................,. ..... ........,........... . , "- i 5312} ~19 / i . ~.. ......... --- ..~ ----..... .--.' : ; r 5306 /5313 . I j_ ) .'".",....... .., ""-' .... ' ,~ . .. .... \ i I r..~:.. 5.307'j , " ..11I .. , i~;''''. t : ',' ~.'.... "'" i 1 "," ,~ .......,.",...- 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. --~~-_._--~--. ~---"--------' UNIT # (ifapplicable) L___~_; _.- 120 .,1i.l'. records per page Page 1 01 2 He.nnepinCounty., MN SS(!r~h"'iPS_~ 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 .;...,~~",~~~~~;,-.,~,.~ 9035 Hennepin County is providing this information as a public service. Have a tax related question? Send e-mail totaxinfo@co.hennepin.mn.us Experience a. problem searching database, have a technical question or wish to CI Hennepin County Tax web site? Send e-mail towebinfo@co.hennepin.mn.us Have a comment on any of Hennepin County's web sites or E~Cornmerceapplicaj e-mail toHenn.Net@co.hennepin.mn.us ~..:~..^,;,~,..,."~,.,-" -"T~;.,.::"":."'''''';'''''._''''':'''~ "-.~.,..'" -, "'L.:J ,~~~J'i~~~.:"",,,,_j :.~,,~.2!~::!~._~-li1 :r!~~~X~~~~!~J: i' _:~,,~~~!~t~,g2f~Lj "",,",!~~ 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 '- 't......:. /~ {' - 7 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, '~," 6 7 8 9 10 11 [property Tax Identification Number or Tax Parcel Number 12 13 located at 14 County of 15 16 17 18 19 20 21 22 23 24 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; _~..__... 27 25 29 30 ,31 32 5. PRICE AND TERMS. The price for the real and personal Property,ihcfuded in this sale is ~nrem;.:IhQus.and. and OOllOO 33 34 Dollars {$250 000 00 35 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. 45 46 47 48 49 50 51 52 53 54 55 66 57 66 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 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. " , 87 88 89 90 91 92 93 94 95 96 97 98 10. CONDITION OF PROPERTY. 99 100 101 102 103 104 105 1M 107 1M 109 110 111 112 113 114 115 116 117 116 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 136 139 140 141 142 143 144 145 146 147 0 148 149 150 151 182 183 154 155 18El 157 158 1,59 ~ (3) Wail/llr of Disclosure. 160 161 162 163 164 165 166 167 168 169 170 171 172 173 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 261 "16~ 263 264 265 266 267 '-", '-.', ,'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.) 177 178 179 180 181 182 183 164 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 206 209 210 21.1 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 2Z7 228 229 230 231 232 233 234 235 236 1S.MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 237 238 239 240 241 242 243 244 245 246 247 248 24~ 250 251 252 253 254 255 256 257 258 259 260 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 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 -285 286 287 288 289 290 291 28. ~ULllPLE,ORIGINALS.Sellerand 292 293 294 295 296 {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 .. ..............................'. """ ,.,' h I [ I I \ ,I '. ' c . ' , I aDt1 \/.:' ..... {J1:JJJ uoP.' ...~Cll:7jf;[]{;q;j ~..". .. .... ".9.' .r;tJ:J;j.......................i.....CJt:o::J............................ . cOP ..~ 0l:JD fJC:J:S ~ .0i:1r:J............. C/J;Jt:; QtlO C1J::iD ~'.., ...........................~.............................. ~ Clt:bS~ 001' .~i.~ ~ ~~ gg5 ~~ ~ ...~.~ oon ~..~ dOD r::t!:1J3.. QjjJ ~ ~ I. .. - ..---, TIn I ...--- ..-.-....____ I I ,'.. _....__..a I i - ----i ~' GPP ctDP ~' cP?j ~ ~ .~ ~I C\OD ~I aPDl aou 01JD OOD p..JQ "'~'d V'lVvL:S ~OZ' '~l N1ilnU81" I,(eosanl 1 u: I 18 18 I:'O'd sauor- AIfQ~S D rEi '14'1( tf~:6 .Ootj~r.(J,"U21" ',{elleen.L ~ 1- \Il I I I I Tuesllay, .January 13, 2CC4 9;14 AM I ; I I , i I I ! SneUy Jon.,s r- r r~-"""""'~ f , F{l " " I ' I l I i ! ~"9 -..------. .. " " " -..... "'" qat !! ~ g: ,., p."'.. - I ) I I I I I .---; "" o I ------------.-,1 ~i I I I I ...J ..." " " , ,. ,." , , , I" ";1' .~, , ~ _....... " a: " I \ I J "I I ',\ I ; I "J t ! I L. . , Vt ~_..:~_." ':I"-~"-' :J I ! I TU88gay, January 13, ~4 9:14 AM f, 1" I I f I i J . I I I I I I , r I I j 1 I 1 I I I I I j , li'. ._____. . ..--.....-- -_.---......~ ," .----....... i _...---...;.._ -._______ : Iii J II I; Ii i! 5 t. r ,''In-.. '... " " '\, , ... , '.. .. " \., '\ ", .. " , " , ,". ,/ ./ ,,' " ,.... , ," , ..' " " , / ./ , ') L. L Sneuv ..iones r ..-.~~-- p.~ .-'4_.. , .-._.-, 1!'5___-r-..----t5'5.- '--' ......--..---------. -"'_._-"-~_.--;;j ,. i I ! , I I I I j I i I , I 1 I t I ! I I I J I I I I I j I . ..... 1 " ---...------..-.___...'0.. .... ;/. , , " " " , , , , ,,' , ",/ , "./ ," , ,.,' ,,/ ____, ----- .--< '. , ... >", ) / -111-. ~r-J.f?bo-r' " .. " ... ... ".. , ... \, , , '" , , \, '\ '.. ..J..- 8'11 .I, ____ 'Z1 --....J .---.- -~ -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 \6144 I i CIl .11) 'tI"l -- ,'" 'I") '''' .It) CIl '10._ fit) '0: 0 7319 :- ;- .,.0 '0 :l'oI :- ~o ;0 'l'OI ._ :;:: c, ;:: 'I") 01") p') : I") i('ol ,('01 ; l'oI ;('01 To ~".;,....~,.....!......~..... ~'" i,....".,.... :.i" ;;:= ;.4........\.-__--...~ 7349. '. 6081 . : -...--.--__L_.-i__L..._l.__~ _.L_.L_~..._~._..::... ,_L~~.1~' . ~ ~ io ~--~-.-......;.-.,......_--..~- .._......__~ !l&J . ...-_ !..:: ~ r--'--'-'~"-'~-'-----'-""---.~ _.............'1... ......... ..........----..~_..,.; -io~....._ 15\ '-~.-., : . , ...-.: ~ :0 .~.; 'fN La ~ to . ~1"':,,"I"'~ ~ L;._.L i'" \::-::~"t-T.. ! 0 : ; .~~~--\ ~----- :> :.~ ,0 ,0 'o;~:o; N' 8: 10.; CD., ~ 1 ~ i ~ i ~i~ l;e.;~ ; :e L~-;-~'~ .-- -......... ...--- -"'-'-'-"--'S"'ST "AVE ~_".--_... _''''''-r''-----, .----.-.-------. Q"-" ~'.60B3 '. ';2_~_.i . g 10 ; ~ (6072 i 6073 \ C.\6072 ~__'~- ,. ..-\ :. ~!.... ;:I:\_._-_.;~.-~";~\"..__. '- 6075' ~. "~;:~'~~_'-\~S~~....:'\6~..~...\~\~~.-_.\~.\ '-6056. '. .' ..-; \ 6056..:(' 6057' \ 6056 '--.-.'. ;"'" .,;.~...-..~ \---'- '., \. ~\ .-...-......~..\..-... ""_."-"-i~ \ .' ~.-ieo59 '\ ~: "6049 ..-' (Jr, 6048 _'. 6049 '; :-c -, \ ",.6048 -.' ,., i"" . . , ., 8048 -.-.-...... \. 6048 ~\-.-~ "~r'~, \~,;...~ \-;;'1 t--.._._~ G051\ 6042 6044 6050 i ; ~~\""6;;;~ '\..-..-~"f'\-------~_._._-1. f 6040 ; \ \. l ::: ", _.'-c ~..i ';6032 16033' ,--'---; '\':,-. _.._"--_..~..:. ..--.----.----r---..-----....--..-~:-::::-..:\ .~ ~i~\ ~/ \....J-- : ~ · i j 6032; ". 6026 ;'t04: . \'('C'\\6C)~~,-i 6025 J J...,.-t --..--! f---i ._~.---, \,........... .' 8040 ; 7124 \ I ~ ~~> ~ '~/ .'.;"'.--.-..;> ;6024 (6025 ~ i 6024 i \ 6035\ . To ! z; =t ;- ./ "~ \~_~~i" 6017!;ij t;;~;:~'71 ~ r-;;;i 6015 '.-'~~'60~\ 6034 '-~ t-_.-..._...._-~,._. _J!"_ .'--Ie <~'\. \~.6008:.:;~-,!'f.~.-.-..+..~...-..;.,.rra.;i -....j '--;-__'::". \. i ;-....--..-...-----...:~ .-.--:;-__..._..___ "-'--~,...J l---.,; :Z.6008 j6009 i Z; 6008 f : 6019\, ~.-'- 8020 '6017, _; ....~7101i ", ;6000 r---') f~--'-'~7,-"w'i j-..-..-..;' 6013 ~ '.."\ ,,<( ...._h_ ~'b.f ,/ j ~ 6001: :6000 '6001 1 ! 6000 : "'-'''-r'--:''.o '\, l..---____ _..._lZ 1 t: -.;.,' '-~-_.-i.-.____..; L...__...:.____J L.__? : 6011 "'" \.. ~<I6008. '3." ....._-,.\...._-....-_gqT.f.LAy;_~Ii_~__...,.-! f'-'-~.~. \ i 7136 r-1!8 ~___ .< . CIl ! (; ~ CD: - i." ~ CIl i CIl 1 ;;.e. -:1 6007 ~ ! "> , 72"" l 17128 I=> i71"" ;:: ! . - , 110' -,0 '.... ':g ,I"), ;.... j/406'6003" '. .....:. . '0:-- . f:e ' "! ~; ~ i:e ~.... ;:e, t;~ "~'~ ; i \, \..--.___._..i.____....:. ...__L..J L____._. 'j II !l'i.~ttt.1i1.l-tt..H-I.tfl.WttJ_ii+IRii~'ltt_..~~.._t~t.~ I,~ . !.!.~ . ~I!.'.!!..__.!_..,__ 6( '\ ~\ :r: ---. '\~\.~. <\~\ = ;.... ,"'*', , l- \~\ ~ \_~\ ....\'.L...... -, \ ... \ \ , '.. " ". . ,,,,, . \ --.-" \.~--~- --.---....... ---.--.-.--.......--__.i. 59TH AVE N r"--"'---"-?Z (--'--'.'---"1 f-"--.'---"-~ .~,' i ! ! j ~ iLLJj i i \ ~ I~; i ! .f i i t i j : ! i , ~ , ... - 6100 ;.--: 8054 6065 . . . ._----'"'....~....__._..__: 6056 - i - '-."'--_...J . 6052 \ 804S .. - "z :~:=~~-==~=:~=~QR.€QQN.-_~~~~~ -_.=~ .:~-.. -'-"'" _ O~~ ." .'--. \ ; .; . .....-."... -.... t;~\" ..../ ) ~ .i '" "'aJ "'~. ..___ !~I '. <: '~:_;~~ ~ ''':. i ------.---.---~-- -----...__.....-....~...~ i --' I i ! , i t' iz: to' ; .....1 ~...." 1I.&Ji fO:; fo! '~.-..~.....__...;........__.; L.._.....,_i.- ._..........;....2 I:;QTU A\~ M ; :; . ! , I ~'.........-.... ._.-..0........_: ..--_. -'I \.--....------ l -:.. \ ~ ',,,- \C"\ "'I.-t/' ;.," ....,,~\ ':''""'''" :. \ \.~\ \\ \----- "'\ ~..__. .... \; ... '. . \:~. "\i;., .-.~{' ~ -'< \ ~... '. ,-~.,.,-..'" :r~'''' ........\., ..... ~ ...... \ .~~\'t......-. - .....-..---..;..'... "'" I i '. ! '.-" ...-...--.....~.--.......-...... "\. --~-..... .--..-..,,",".- --"'-~.----...., . . "-".-.~--..;;.........~,.; --- .......... .............. ~ 2619;61 RES J,.: , I J ~ ~ CD ,!!:' (7) "L 133.72 JJ "..-._.----- 193.8.04 I -.L.-_ ___ CITY OF BROOKLYN PARK CITY OF NEW"'trrJPE- 6 2tID_ ~ 1_ ~ A V~_. ;5) I I ,I I , I J I I I I I I J I I .... I """I ., '" .-1 "'" (64) I I I I I I , I I I I I I ..,- I I I OUTLO~ 2 I I (63) J I I (62) I I I J I I I I I I I I I I I I I I I I J 535 I 75 15 2 1 0 6 0 5 Cl8) ~ (/7) ~ (/6) V\\1i ~.lJ) . . ...0 0'" ... .~ .~ '" _...) ._~- . I I~ OllTLOT I (58) I II ( ~ ~ + <D '" d I : 75 75 75 15 25,: 50.84 ;;; '" 2 3 co (13) II> 4 II> Cl4) 0 (15) ... ~ ,..; = 8 0 R=1338.94 100 I J <D 0 (/2) I I I r3:r.02 I , I , I , 1 '''' Ie If' t , , ..., ~ ~ , '''" ,~ \~ \0 (- \ \ \ \.}5.;!.~ 75 75 9 (20) o ~ 8 (/9) '@1$!Ar C~1i1fh >J!@N/ 6/ST AVE N .79 75 "--'6'0'-"-' WEST .3 2 la !3) ~ C> 20 '" (51) (22) 130.l'3 81.34 162.34 3 (24) C30l /0 0 ---------------- '" ... (5) r:. 4 -::. '" 3 5 CD 123.56 0 (36) "" u APT OW~ ... (6) on 6 '" .. NO 138 IS.I .;J /_,===--" , / ~.'~~--= -.- ----.- -J:,"":- /'" '. ., ..... l, \J- -- -:-=- '- "'~- ~...... ~f"'" C.;:::....~ ~"i ';;;)1 " .::: -, :- ,,'. . . .".- ~I~ f'." · .~~ ". .~ It\i .~i n ..--J i . -\1 f! '-J r--] . i---' ,'i !i'nr LJ LJyj(.- .' --.J C / -o---x . - ~/; 19~'~~h-i ....:" . tfo'" , 1,1 ,.' . ' : '(0 ' I! r . " " 19> ) i...., : I \ (!~l....IC C Jib 0,0 il", .;0.1/ .!\ ~ 1"(..'" " II '. ,c c c eo\ \ }n ..;U;I.....'. ' I ~ I , " <lD::; c ~ ~/ '\ ~ rc -- ( - .,..... y~ ~) ::: c ~ -- , ~ 1\ A'v'ENUE -< \C .) c ), D\ \ ' \ r---J j rX---"'" , ;(;)1 x.J i 'tJ. " fna \ " 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 -'. . . .._~ -....-....-.......:. L.._ '.' .}y- ;.-.-..--- --..---... ....11T.-rir...S6TH AV,' NiJII,lT i ---~ ..-................---- - - - I - - 7301 - I - - ~..".................._.;...-..-. -.. i. ......... - - -............... -, ~ 5<443 ~ ~. 5+44'..;.: 5437 .:,: i 5436 ~ 5437 : 1 ;.: . ~... ....-. .~......._.._- .-...{fo.....-- --.....,r.....-........I 5431 iZ' !.5438 ; M33 . i . ~ S434 ~ 5433 ! !. ..~. . . I" .". . . Z \ . . ,.... . . ," . . . ... . . . .'. . .' : ...-..........-.-: . .', ~...-.~=-..~--......~i :---~-----""'----~.---1 50429}W !. 5428 -fM29 i l.&J ~ 5430 i 5429 ~ ,.__..... _.-i~ ~.....__ .....Jo_ .....___.; .~ ;_..___~ ..,.._ _ ..: 5427 !.t M26 ~ 5427 ~ < ~ 7eoe ~ 5425 1 ... : " .' a .!:. .' . : . .1 5423 r -sr'-.--'-"-RApHAE[.--'--: ........-.-... ...-....- --. ......... .-.......... J ;'. ! . , i 5420 ; $425 $417 ~. . ... r ..- . ! ~.. .........+...",.....~ -;;,3"7rffi 150*'4 : 50413 i -I-- ,........ ..... ......-----.--....-.... : -s~-.r::EV .5-406 1 5409 : ~~. : . : ..",.~. .-......,......-....-- -.......-.~----. ...~ ", . .,' .., - . -..' . . . S401JV) ~5400 ~ 5401 f ; ~. ,,- j_..... ~ . -----.......... a._.......____...-t...................... 5325 · ~ ;5330! 5337 ? .............-...._ ._.......... __!_._ _._.__il~ 5319 ~ ~5324 ;'5331 ; ! (. ..; .. ..,. : ~ "..-._ .i. \ ; C) . ; 531j-7 ""'5318" ~ -.S32S~~ ( 8 ~::. ,,~ .:!. ~ .,i'--,,_._ ...__.......!.! ; ) ~ _ ;.....'..--....T-.........-- ! .,,:, I, , . .......,...:..~: . [8,/ 5307: / 5312,! - 5319 l i '.. I~S ; ~ . ,.."'...",.......... .. : .. lilt. .................~ ......._,.___..: '--.......__.. ". . ' " ... 1".,.,.. . :~'.;-5?..a2.....~,8S-~:i.~.-..,.'-~.....~....;1~i,~.,~./ !L__~/- :::3 / , . 1 - .. ",,-. .. LBr....\.. 5307'7 ;----......;;.: !.,' ....' r:/;~;' ""'..... !' .. -- .,. ,,~ . :"., -"~~ :..... "., i 1 . . ....~ ~ f . .. " .......-..----:~ :; . 5519 . . . _......... ............J , 5509 ~ . . , . { , . -550,'-: _.J ......: i i , / .. f f i ...--....-. -- -....-----........ , -.;. --( f \ , ; . ..-.; . , ...1 ( ~ . -{ i 1 ; 55.3B i \ .. ~ .... :: ~ : ~ ~ g HJ ~; 7615 1 po.. ~ ~ ~H "i ; ~ I., ) : ::: , .~ Ii:~, . ~ 1 .l.t .__..:...... .-_..~....J .~ . . , \ , : ~510 ~ O:~ "if' ~ ! . O. N; ~,----~ ,... ~ 11:): . . ,... ~ ,...~\ / 7708 i , 7608~ ,; ; . ~ . \ . ! . '.-.- .-- .... .---.......--.-- ...--.------........ ..-.........--- 55TH AVE.N - ~- .----1 : 1It.~~~. . .; ~....~ ~.+ ~--.............~ ~"~32...._ , . ~........~ ; 1It.~ .~. ...,.. : ~..... j-M;;1. u ~l)R-:..~ .~----'~ 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 ~. . -~ 5841 ::t -+ . 5B35 * 5627 . ...j.. ...j.. .... -. ST. THERESE NURSING HOME ~08 8000 36 I 5437 I 30 ! 5431 126 I 5427 20 i 5421 I I [16 ! 5417 ~ ~... .. 5539 7940 5436 5437 5430 5431 5428 5427 5420 5421 54-16 54-17 c:;,./!'Jr'l I ~411 Z I.LJ ~ 5813 I.LI o o I: !r ~~ ~ 5811 . ..... :t . :t ..,I/.,".ll...... ........ .. I I f= . 5736 5732 5720 5716 . ~ I I . ..... =+= . 5705 $ . $ ; Z I.LI ~ Cl z :5 en I.LI Cl o I: a::: 5700 5704' Z 5620 5600 7800 ~ 5550 5S59 Gl - ~. 0 CD 5540 .... 5537 5532 5531 !S24 5519 5518 5509 :s!I12 5501 !SOe 5:500 5443 5446 5437 5440 5429 W 5434- 5427 ~ 5422 5423 5420 I 5417 - . 58TH jw .> .< ;z iO 18; 10::1 10 A 5701 . - - . - 0+- or . + Z -+- . I.LJ - > 0+- < -+- . ~ :1 z .. ~ :.-J $ >- en . z z $ w a. 5821 5805 5601 7600 7550 r J J 7JI T, 73f ",., ST. RAPHAE CATHOLIC CHURCH ST RAPHAEL DR. [5420-115425/ r 542015419/2:! 5418 /53611 b354l =1~/53 7621 II) 7601 ~ ELM GROV 5!500 PARK 5546 5538 ." i 7615 ..... 5530 !5520 z 5510 ~ . CI C\/ - CI CI 7708 ..... ..... ..... 7808 55TH AVE N 5444 5437 5436 5437 5438 54.l3 Z 5434 54.13 5428 5421 W S430 5429 5428 5427 ~ 7806 5425 N". 1/1 !: +- . "f 7301 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. ~ r ~- 8 ~~_. NIM ^'rt 'rt>.l ~ ~ ~ 1--1 Z Z M 1--3 ~ > Z M ~ ::c o "'0 M ~ ...... z Z M Ul o >-3 :J> ~ z Z IT1 --I 7\ )> )> ::: z .~ 1--3 o ~ Z ~ o ~ M en ~g~~~* ~ ~~~~i~ ~ , '~~~: 5 ~: ~ [R. m .:~ ~ '" . .~ tJ i:;;; )> ,,",'," --I ~2;~~~~ )> $ z ~~.+. nzC: . ~'" ::~= n._ :;::l!t c.... :J> Z C :J> :::0 >-< 1\) w 1\) o o *'" 02!lOl! TtlSNIE-1I01l'lUl1l1:II" . u:lOC!UU, e , H 0, o 10& CD-----rrn ~ ___l~ 1F1't---- r-ld. il II Ii Ii J) ~- : IF'j w- ~._JJ.-,-lL 0) CJ R (])--- ~ I---l Z Z M r-j ~ ~ Z M :::;;:: ...,... ....... o '- u M 3:: '- Z Z M Ul o >--j ;J>- !~ CD CD r-j o ~ Z ~ o ~ M UJ "-< ;J>- Z C ;J>- ::0 '-< [\) GJ [\) o ~ '-' ..,. CC%Oo~nlsim:. >~-;+. " .0 nz~ =riQl ::~:c ~S: ~ 0 ~ ~ " I Z j LDII " r I ',I " ;\ . 1 t- : joSZ ~.~ " 1> -I 6 "1'~'" 'i'r: ;6 _____ "\ . .. ______n__.,.____ : I [ ... !jmVil ~ l~~~~:j , 'v> ; :);' :& ___-.-J ~ r--; Z Z M ~ ~ ~ Z I7:i ~ ::r:: o U I7:i ~ Z Z I7:i C/) o 0-3 :J> , ; o <' "''' m,. Ov> "'... 8~ " 3 I I , "'0 ! ~~ I oz: 1 L-4 o I I' ,------ I I I . I I I i~l~ i" ,II m 0- ~ o ~ Z ~ o ~ M CfJ "-< :J> Z c; :J> :::t:I >-< ('-J GJ l\) o o ..;::,. (tl21102TUSRll-JllJIlTGOIIE'IIYl >.-. "'0 . nzC =~Ul ;:~= ~S: EDA REQUEST FOR. ACTION Originating Department Approved for Agenda Agenda Section Community Develepment /-.., .\ \.' \ . ! 1-26-04 EDA Item No.. B: Kirk McDonald Ite,,! -i..//v'.... B .,' //'!J .,..' './ ,J.:',\... 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 ~ -~.~'!; -~ - "- -'" :: .--;., CB -- -'- - - ~ .;; '7 ~ .. '1 c ~ ~, ~ :=-.lVl:,&\lEh. .....:- j)'S"" "'\oE 81ST.tiVE..!:. -.. '" ..~-- '" _601-7....::f'. '0 I; t: --~ , ,,~ ,,& .:.- "'~ <' - IOTn.A:.:E.l. '~1t'l""'f.;.. 1 ",(_ '}', " '..:: \~.EADOW.,. '~'~:':::::;':.:-- -'-\,.;... -~ ~ 5i1~:: __ C1'IE3.:'of'\o" l::' '" ...E.lo.... -\ LAKE -'0\ ..... -! " -g' ~~.-~ i_ - ~ ~ " ':- ':: 5_!;t~):'..E.rl ---: ,~ " - -~ f'I' _ :! --.- ~ ." " -... ~ " .i;; i< ::f- It eo ~~~J'tA\l '. .~ '" -~ " '~~""o':. "'~~e.F:. ;: "" -."':'" f:l.-r,'..; 4.. f '. " " ~ . . - HOSTERMAN JR HIGH SCHOOL WINNETKA - ELEMENTARY---_~ SCHOOL '~-./ . .,.. LR-3 ---iEIt!'~J>i w .z.~ >-.-,..~...---~ w---....., < ~_... < .~ ...._...~... ~~~~ ..._...._...:.___5~_ z -..----'-....-.... ----~ ------0'-.,.- "--- .'-"~.~L- " ',,"' ~ IOAPttAJ;o. ~-~ it i ] ;":'~----~ffi""-'72""-:-""-~'" _..._.-~_._=~~~=_. .:i ~~._~._._- ~~=--.~z__ !:t. ~-"-:'_ " ---. w-.... -_ II' ....I.U., B_ .....i ,~~.. - .60IHAllE..r.l-... . ~~-f . Z' w '" ':Z-'. ...:- '.i s- :E -----:---,a: ~ 0 -=!~ ._-_.._~~' 2' ..._._ "~'Z '" --~ lD 'YEIL, . ___ !!, ;? --'-----.;.~ ~. .-..::.---. .----....., CHURCH OF CHRIST ~__"'U"__'_. "".- -../'. '~".'.'".".-'-~ '.. -'.'. .' - ACRe.;' ~ PA . , ." ...; "'" ~----- " v----} L./! 4 '" " 561S Z en Z 5610 5615 0 () en To ~ 5605 5600 ,~ , I I I l~ ! =--iz '. ' 5S_'t51 i', 'W !5629 '~ 5621 JQL fH AVE N 0) 0)' !!' I g. ,..., po.. 1,- ,... ! ' ..,~ -..-... -""- VILLAGE GREEN GOLF COURSE 8130 ST. THERESE NURSlNG ' HOME 8008 BOOO 8100 5630 It) 5618 .., - ....CD co .. 0 co.. co 8001 8011 8009 8007 r--- ~ 1;::;'1 , 58J5 im~ 'i>i.1 8 :t I :I: i \~~ * - =+ "111~IIiCi) . I :=> \0, \ \~ ~ 5853 5841 5827 5813 5811 I 5720 5716 I Z LL.J ~ o z :5 (/) w o o :c: 0::: Iz -w I> -.<:( -0::: Iw -I- ~ => IV) 5700 5704 5620 NOO I 7800 I 5539 5S5O 5559 5546 eft - ~ 0 co 5S4O ... 5537 5538 5532 5531 5530 5524 5519 5520 762.1 .- 5518 5S09 5510 8 . C'f ~12 .... Cl n08 .... .... 5501 S508 55TH 5500 s.4<43 I~ f 5437 79~ a ---_._~ - - - 0- ~' ' '._~_-:::...':.-- . at /~____""...- ~~i~':'-- _ ....------ III " ,.- '" , I" f I' 11 , / 1/ f .. " I ," -' I I ,. . I I , I,; j l/ 'I,' 1,1 /Il I f I I I , I r I I ' I I d " ! / I , 1 , "" i J~, I' I If( ~.' r \ ",' : I ; · ," ,..... ,~ , : \ !JIB.'" , , I \ I \ ! \. "'" 1/ \ · I ! I I I I I , j ! ~: ~ ~ --------- t "' \ , \ \ \ \ \ \ \ \ \ , ~--- ,- , ----" \ \ \ , " " """",""---' / I' I , , I , I I I I I i I I I , I ! I J , , ::i. ~ I I 1 I o o [J ., ;1 W .' II :::l 'il ffi > r o II] ~-:.,,- - -------- ~.........;.--~ ,.....;.. ..;-,~ , , I / r---".... ;i \ .... .' ..... I ~. . ,.- - , ", "', r" t , , if'? I I- i........... ~ / I I r - --t 1 I! '/ I' I -. I J I' , i / 1 .... / 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 ~ ,/~-"'-, l' --.;,.: '\\ . \, \; ~-Jj ':. "'"':X-' lit f}. J "- cc: :Kirk McDonald,. Community Development Director, City of New Hope (via. facsimile J l>:,^lID~\SAS\l.e!ten\CNH99.II289-002-Alty Beeson Ltr.doc n~ 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. I I I j I 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