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IP #1025 destroy 2030PROJECT NO. 1025 Acquisition of 5212 Pennsylvania - $178,000 EDA Res. 9/10/18 Resolution approving purchase agreement for the acquisition of 5212 Pennsylvania 2018-15 Avenue North (Improvement Project No. 1025) EDA Res. 6/10/19 Resolution approving contract with JACON, LLC for hazardous material abatement, 2019-02 demolition of site improvements, utility work, tree removal and site grading of 5212 Pennsylvania Avenue North (Improvement Project No. 1025) EDA Res. 8/12/19 Resolution approving purchase and redevelopment agreement with Novak -Fleck 2019-03 Incorporated for the sale of 5212 Pennsylvania Avenue North (Improvement Project No. 1025) 3 lw [(*]I - Request for Action August 12, 2019 Approved by: Kirk McDonald, City Manager Originating Department: Community Development By: Jeff Alger, Community Development Specialist; Jeff Sargent, Director of Community Development Agenda Section EDA Item Number 4 Agenda Title Resolution approving purchase and redevelopment agreement with Novak -Fleck Incorporated for the sale of 5212 Pennsylvania Avenue North (improvement project no. 1025) Requested Action Staff requests that the Economic Development Authority conduct a public hearing and approve a resolution approving the sale of the scattered site lot located at 5212 Pennsylvania Avenue North to Novak -Fleck, Inc. Policy/Past Practice The Economic Development Authority reviews proposals for the redevelopment of EDA-owned scattered site properties prior to executing a contract with the preferred buyer/builder. Background A Request for Proposals (RFP) marketing the lot at 5212 Pennsylvania Avenue North was sent to more than 20 builders on June 26, 2019. The non-negotiable minimum lot sale price was set at $60,000 and builders were allowed the opportunity to submit a higher offer to make their proposal more competitive. The RFP stipulated that the proposed house "must be an owner -occupied, single-family home." The occupancy requirement applies to the first buyer for period of two years. Proposals were due on July 10, 2019. The EDA received four proposals from the following three builders: • Novak -Fleck, Inc. (preferred) • Houston Homes, Inc. (two designs) Great Buy Homes, Inc. Staff reviewed the proposals with the city manager and selected the submittal from Novak -Fleck, Inc. as the "preferred" proposal. One of the proposals from Houston Homes, Inc. ("19031") was also viewed favorably as it featured a "side -load" garage and large front porch; however, the submittal from Novak -Fleck, Inc. included far more finished square footage (including a finished basement), more bedrooms and bathrooms, and a higher lot purchase price. The projected home sales price of $401,600 would be the highest sales price of a scattered site housing project to date, and the first to exceed $400,000. The base characteristics and attributes of each proposal are summarized as follows: Novak -Fleck (Preferred) Houston Homes "19031" Houston Homes "19064" Great Buy Homes Lot purchase price $65,000 $62,500 $60,000 $64,000 Projected sale Price $401,600 Low $400,000's Low $400,000's $360,000 Front Yard Oregon Avenue North Oregon Avenue North Oregon Avenue North Oregon Avenue North Design 2-story 2-story with side- load garage 2-story Split-level I:\RFA\COMM DEV\2019\EDA\Scattered Site Housing\Q -5212 Pennsylvania Ave N Lot Sale 08-12-19.docx Request for Action, Page 2 Novak -Fleck Houston Homes Houston Homes Great Buy Homes (Preferred) "19031" "19064" Finished Space 2,805 square feet 2,064 square -feet 2,298 square feet 2,537 square -feet • 959 on main ■ 1,032 on main • 1,102 on main • 1,403 on main • 1,066 on upper • 1,032 on upper • 1,196 on upper • 1,134 in basement • 780 in basement Bedrooms 4 (3 on upper level; 3 (all on upper 4 (all on upper 5 (3 on main floor; 1 in basement) level) level 2 in basement) Bathrooms 4 (1 full; 2 3/4; 1 1/2 3 (2 full; 1 1/2) 3 (2 full; 11/z) 3 (2 full; 13/4) Garage 3-stall 3-stall, side -load 3-stall 3-stall Fagade • Vinyl and board/ • Curb appeal • Wood porch • Front door with batten siding from both streets • Vinyl and board/ window with stone • 32' wood front batten siding with • Vinyl and board/ accents porch with stone accents batten siding with • Pillars with stone railing • Pillars stone accents accents • Front door with • Wood pillar • Garage with glass window ■ Garage with glass inserts (not ■ Vinyl and board/ inserts shown on batten siding elevation) • Pillars Other • Master suite with • Fireplace • Fireplace • Master suite with walk-in shower • Granite/quartz in • Granite/quartz in walk-in closet and closets kitchen kitchen and 3/4 bath • Fireplace ■ Stainless steel • Stainless steel • Soaking tub appliances appliances • Granite/quartz in • Upgraded hard ■ Upgraded hard kitchen surface and surface and carpet • Wood flooring in carpet floors floors dining room and • 2nd story kitchen laundry • Stainless steel appliances Notes Same design as Unfinished Unfinished House is similar 4511 Boone Avenue basement basement design as 6065 with upgrades Louisiana Avenue (sold in 2016 for and 7215 62nd $319,500) Avenue, 2' deeper Experience_ with Recommended Builder Novak -Fleck is a moderate -sized home builder based out of Brooklyn Park that has demonstrated a track record of selling homes at their anticipated sales price. The city has sold five lots to Novak -Fleck over the past five years. Addresses for those homes, sales price, and year of sale are as follows: 5431 Virginia Ave N: $245,000 (2015) 6059 West Broadway: $226,150 (2016) Request for Action, Page 3 9115 62nd Ave N: $296,094 (2016) 9121 62nd Ave N: $270,900 (2016) 4511 Boone Ave N: $319,500 (2016) Return on Investment It is anticipated that expenses associated with the project will be approximately $180,162. Revenue from the sale of the lot will be $65,000, resulting in a loss of $115,162. The proposed improvements would result in an increase in the taxable property value for the subject property. If the property were to be valued at $399,000 in 2020, it is estimated that taxes allocated and payable to the city in 2021 would represent an increase of $1,713.56, or 183.26%, as compared to those that were payable in 2019. Estimated Market Value 2018, Payable 2019 Pro'ected Market Value 2020, Payable 2021 $163,000 $399,000 Taxable Market Value 2018, Payable 2019 Projected Taxable Value 2020, Payable 2021 $140,430 $397,670 Taxes Payable 2018, Payable 2019 Projected Taxes Pa able 2020, Payable 2021 $2,521.90 $6,997.60 Taxes Allocated to City 2018, Payable 2019 $935.03 Taxes Allocated to City 2020, Payable 2021 $2,648.59 The following table demonstrates the tax benefit associated with the increase taxable property value over the course of 30 years: Additional Taxes Collected By City Year # of Years $1,713.56 2021 1 $3,427.12 2022 2 $5,140.68 2023 3 $6,854.24 2024 4 $8,567.80 2025 5 $17,135.60 2030 10 $25,703.40 2035 15 $34,271.20 2040 20 $42,839.00 2045 25 $51,406.80 2050 30 The increase in property taxes allocated to the city would not cover the shortfall for 68 years, unless other substantial improvements were made to the property. The primary focus of the scattered site program is to target distressed single-family properties throughout the city, with the goal of improving residential neighborhoods. It is understood that potential losses are incurred on each project, as the cost to acquire the distressed properties and redevelop often exceeds the value of the new vacant lot or rehabilitated home. Request for Action, Page 4 Staff is working with AEM on a template that can be used for future scattered site housing projects to calculate the Internal Rate of Return for potential projects. It will be discussed at the August 19, 2019, work session meeting when the Community Development Department provides an annual update to the City Council. Development Agreement and Next Stews Staff worked with the assistant city attorney to draft a resolution and Purchase and Redevelopment Agreement for the sale of the lot. The agreement ensures that the provisions set forth in the RFP will be met and sets the purchase price at $65,000. The agreement included in the attachments is considered complete by staff and the city attorney; however, some minor revisions may be necessary once fully reviewed by the buyer. Any substantial changes to the agreement would be presented to the EDA for approval. Once the agreement is fully executed, staff anticipates that the closing of the lot sale will take place in September 2019. Construction of the home would begin shortly thereafter. Funding Funding for this project would come from the EDA budget. Recommendation Staff recommends that the EDA conduct a public hearing and approve a resolution approving the sale of the scattered site lot located at 5212 Pennsylvania Avenue North to Novak -Fleck, Inc. Attachments • Resolution s Purchase and Redevelopment Agreement with RFP and proposed plans • Other proposals • Budget & Return on Investment CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 19-03 RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH NOVAK-FLECK INCORPORATED FOR THE SALE OF 5212 PENNSYLVANIA AVENUE NORTH (IMPROVEMENT PROJECT NO. 1025) BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope ("EDA") as follows: WHEREAS, the EDA purchased that certain real property located at 5212 Pennsylvania Avenue North, New Hope, MN, and legally described as "Lot 7, Block 5, Sunset Heights, Hennepin County, Minnesota (the "Property") on September 26, 2018, with the intention of razing the existing house and all site improvements in preparation of the sale of the lot f6r the construction of a new single family home; and WHEREAS, in response to a Request for Proposal ("RFP") sent by New Hope City staff to various builders, the EDA received an offer from Novak -Fleck Incorporated, a Minnesota corporation ("Novak -Fleck") regarding the sale and redevelopment of the Property; and WHEREAS, the EDA arrived at an agreement with Novak -Fleck, to sell the Property for the purchase price of $65,000.00 upon all of the terms set forth in the RFP; and WHEREAS, the EDA has accepted Novak -Fleck's offer and has presented a draft of the Purchase and Redevelopment Agreement to Novak -Fleck, for its review, a copy of which is attached hereto as Exhibit A ("Purchase and Redevelopment Agreement") and incorporated herein by reference; and WHEREAS, it is in the best interest of the EDA to sell the Property to Novak -Fleck for the sum of $65,000.00, in order for Novak -Fleck to redevelop and build a new single family home on the Property in accordance with the City's scattered site housing program and policy; and WHEREAS, the City staff is hereby seeking approval from the EDA of the Purchase and Redevelopment Agreement, subject to other terms relating to the closing on the sale of the Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. Exhibit A Purchase and Redevelopment Agreement See attached. P:\Attorney\SAS\l Client Files\2 City of New Hope\99-11429 5212 Pennsylvania Ave N\Resolution Approving Sale of 5212 Pennsylvania Ave N.docx PURCHASE AND REDEVELOPMENT AGREEMENT This Purchase and Redevelopment Agreement ("Agreement") is made by and between Novak -Fleck Incorporated. a Minnesota corporation ("Buyer") and the Economic Development Authority in and for the City of New Hope, Minnesota, a public body corporate and politic created pursuant to the laws of the State of Minnesota ("Seller") effective August , 2019. In consideration of the covenants and agreements of the respective parties as hereinafter set forth, Seller shall sell and Buyer shall purchase the vacant parcel of real property located in the City of New Hope at the property address of 5212 Pennsylvania Avenue North, New Hope, Minnesota, and legally described as "Lot 7, Block 5, Sunset Heights, Hennepin County, Minnesota (the "Property"). 1. Purchase Price. The purchase price for the Property is Sixty -Five Thousand and No/100 Dollars ($65,000.00) (the "Purchase Price"), which Buyer shall pay as follows: an initial payment of Two Thousand and No/100 Dollars ($2,000.00) (the "Earnest Money"), which sum shall be paid to Seller upon Buyer and Seller's execution of this Agreement and Sixty - Three Thousand and No/100 Dollars ($63,000.00) payable by wire, cashier's check or cash on the "Date of Closing", as that term is defined in paragraph 6 below. There are no items of personal property or fixtures included in this sale. 2. Title Conveyed. On the Date of Closing, Seller shall deliver a Quit Claim Deed (the "Deed") to Buyer conveying marketable title of record, free and clear of liens, encumbrances, assessments, and restrictions, except for the "Permitted Encumbrances" set forth on Exhibit A and the restrictive covenants referenced below in paragraph 4.b. 3. Representations of Seller. Seller represents and agrees as follows: a. Seller owns the Property and has the right to sell the same, and that there are no unrecorded contracts, leases, easements or other agreements or claims of any third party affecting the use, title, occupancy or development of the Property, there are no parties other than Seller in possession of any portion of the Property, and no person, firm or entity has any right of refusal, option or other right to acquire all or any part of the Property. b. Seller has not received any notice from any governmental authority concerning any eminent domain, condemnation, special taxing district, or rezoning proceedings. C. To the best of Seller's knowledge without inquiry there are no septic systems or wells on the Property other than the sealed well referenced in the Certificate on the attached Exhibit B. d. Seller represents that it has the requisite power and authority to enter into and perform this Agreement and any Seller's Closing Documents signed by it. e. Seller is not a "foreign person," "foreign partnership," "foreign trust" or "foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code. f. To the best of Seller's knowledge without inquiry, no above ground or underground tanks are located in or about the Property. g. Seller makes no other warranties as to the condition of the Property. Seller agrees that any breach of Seller's foregoing representations shall be grounds for Buyer to terminate this Agreement. In the event of such termination, the Earnest Money shall be returned. Wherever herein a representation is made "to the best of Seller's knowledge," such representation is limited to the actual knowledge of the President and/or Executive Director of Seller. 4. Representations of Buyer. As an essential part of this Agreement and in order to induce Seller to enter into this Agreement and sell the Property, Buyer hereby represents to Seller: a. SUBJECT TO THE FOREGOING REPRESENTATIONS BY SELLER, BUYER HEREBY ACKNOWLEDGES THAT BUYER IS PURCHASING THE PROPERTY IN "AS IS" CONDITION AS TO THE USE OF THE PROPERTY. Buyer understands and agrees that the Purchase Price is the fair market value of the Property in its "AS IS" condition. Buyer acknowledges that they have inspected or have had the opportunity to inspect the Property and agree to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for the purpose of determining if the soil is suitable for construction of the homes described in paragraph 10 below. If the soil is determined to be unacceptable Buyer may rescind this Agreement by written notice to Seller, in which case the Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer. b. Buyer agrees the first sale of the separate homes on the Property will be sold to owner -occupants. An "owner -occupant" shall be defined as an individual(s) that purchases the home from Buyer by warranty deed or a contract for deed and intending to reside in the home as a primary residence. To insure the intent of the parties that the home constructed on the Property is purchased by an owner - occupant, Buyer will record restrictive covenants and assessment agreement against the Property prohibiting the leasing of the home for a period of two (2) years after the sale of such home by Buyer to an owner -occupant of the home. The restrictive covenants and assessment agreement shall be substantially in the form of the documents attached hereto as Exhibits C and D, respectively. - Further, the restrictive covenants and assessment agreement shall provide that the EDA may levy a $20,000.00 assessment on the Property prior to the sale if the lot is not being sold to an owner -occupant. The EDA shall release the Property from these restrictive covenants and assessment agreement upon the issuance of a certificate of occupancy for the construction of the home on the Property and upon the receipt by the EDA of an affidavit signed by Buyer and the owner - occupants verifying owner -occupants' intent to reside in the homes as their primary residence in compliance with the restrictive covenants described herein in the form attached as Exhibit C. C. Within one (1) year of Closing, Buyer shall complete the construction of the single family home on the Property (the Improvements). The Improvements must be consistent with all building and zoning requirements and the restrictive covenants applicable to the Property. The representations set forth in this paragraph shall be incorporated into appropriate documents to be recorded against the Property (whether by declaration, restrictive covenants, or development agreement as hereinafter defined) subject to approval by Seller and Buyer as a condition of Closing. 5. Title Commitment and Policy. a. Seller shall deliver to Buyer a Commitment for an ALTA Form B owner's policy of title insurance (the "Commitment") issued by a title insurance company of Buyer's choice ("Title Company") and covering title to the Property, in the amount of the Purchase Price. Buyer agrees to pay the costs associated with the preparation and issuance of the Commitment; Buyer shall pay the premium for the owner's policy, if any, and the lender's policy, if any, along with the price for any endorsements requested by Buyer or Buyer's lender. b. Buyer shall have fifteen (15) days after receipt of the Commitment to review and approve the title to the Property and to object to any exception to title that is disclosed in the Commitment or which is otherwise discovered by Buyer. In the event that Buyer does not within such fifteen (15) day period give notice to Seller objecting to any such exceptions, then all such exceptions shall be deemed approved and shall be considered a part of the Permitted Encumbrances. If Buyer timely objects to an exception to title, then on or before the tenth (10) day following Buyer's notice of exception, Seller shall remove the exception or notify Buyer that Seller is unwilling or unable to remove the exception. Within five (5) days of any notice by Seller that Seller it is unable to remove an exception to title, Buyer may elect by notice to Seller to either: (i) terminate this Agreement, whereupon all of the Earnest Money shall be returned to Buyer and the parties shall be released from all further obligations hereunder except obligations under this Agreement which provide for continued exercise following the cancellation or other termination of this Agreement; or (ii) elect to have this Agreement remain in effect, in which event Buyer will be deemed to have approved the previously -cited exception and the same shall be considered part of the Permitted Encumbrances. 6. Closing. a. Closing shall occur on or before October 1, 2019 (the "Date of Closing" or "Closing"), unless both parties agree, in writing, to an earlier or later time. b. Closing shall occur at the office of the Title Company. C. Seller shall deliver at closing the following executed and acknowledged documents: (i) the Deed; (ii) affidavit(s) in industry -standard form(s) stating that possession of the Property is being delivered free of any mechanic's or statutory liens in connection with work performed prior to closing; Seller is not a foreign person or entity; and addressing such other matters as Buyer may reasonably require. 7. Payments/Prorations. At Closing, Seller shall pay the cost of recording any instrument (other than the Deed) necessary to place title in the condition required under this Agreement, State deed tax, and all special assessments levied, pending or constituting a lien against the Property as of the Date of Closing, including without limitation any installments of special assessments and interest payable with general real estate taxes in the year of closing. Seller will pay general real estate taxes payable in the year prior to the year of closing and all prior years. Buyer shall pay at Closing the cost of the owner's policy or lender's policy of title insurance (if any), sales tax (if any) resulting from the Closing, the fees required for recording the Deed, the Purchase and Redevelopment Agreement, the assessment agreement and restrictive covenants and all customary closing fees charged by the Title Company or other closing agent, if any, utilized to close the transaction contemplated by this Agreement. General real estate taxes payable in the year of closing shall be prorated by Seller and Buyer as of the closing date based upon a calendar year. Each party shall pay its own attorney's fees. 8. Condemnation. If, prior to the Date of Closing, all or any part of the Property shall be condemned by governmental or other lawful authority, Buyer shall have the option of (a) completing the purchase contemplated by this Agreement, in which event all condemnation proceeds or claims thereof shall be assigned to Buyer, or (b) canceling this Agreement, in which event the Earnest Money shall be refunded and this Agreement shall be terminated with neither party having any rights against or obligations to the other except rights or obligations under this Agreement which provide for continued exercise following closing or cancellation or other termination of this Agreement, and Seller shall be entitled to any and all condemnation proceeds. 9. Construction of Homes. Buyer agrees that it will construct a new single family home on the Property. This covenant shall survive the delivery of the Deed. a. The single family home described in this paragraph is referred to as the "Minimum Improvements." b. The Minimum Improvements shall consist of one new single family home, and shall be constructed substantially in accordance with the RFP Guidelines attached as Exhibit E and the proposal approved by Seller on August 12, 2019 attached as Exhibit F. C. Construction of the Minimum Improvements must be substantially completed within one (1) year following Closing. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of New Hope building inspector. d. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of Buyer to construct such Minimum Improvements (including the date for completion thereof), Seller will furnish Buyer with a Certificate of Completion for such improvements. Such certification by Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the Deed with respect to the obligations of Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof. The certificate provided for in this paragraph of this Agreement shall be in such form as will enable it to be recorded in the Hennepin County Recorder's Office and other instruments pertaining to the Property. If Seller shall refuse or fail to provide any certification in accordance with the provisions of this paragraph, Seller shall, within thirty (30) days after written request by Buyer, provide Buyer with a written statement, indicating in adequate detail in what respects Buyer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of Seller for Buyer to take or perform in order to obtain such certification. e. Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (i) Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer"), without the prior written approval of Seller. The term "Transfer" does not include encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable Buyer or any successor in interest to the Property, or any part thereof, to construct the Minimum Improvements or component thereof. If Buyer seeks to effect a Transfer prior to issuance of the Certificate of Completion, Seller shall be entitled to require as conditions to such Transfer that: (1) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of Seller, necessary and adequate to fulfill the obligations undertaken in this Agreement by Buyer as to the portion of the Property to be transferred; and (2) Any proposed transferee, by instrument in writing satisfactory to Seller and in form recordable in the public land records of Hennepin County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of Seller, have expressly assumed all of the obligations of Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by Seller) deprive Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by Seller to the contrary, no such transfer or approval by Seller thereof shall be deemed to relieve Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto. (3) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subparagraph shall be in a form reasonably satisfactory to Seller. (iii) If the conditions described above are satisfied then the Transfer will be approved and Buyer shall be released from its obligation under this Agreement, as to the portion of the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (iii) apply to all subsequent transferors. (iv) Upon issuance of the Certificate of Completion, Buyer may transfer or assign the Minimum Improvements and/or Buyer's rights and obligations under this Agreement with respect to such Property without the prior written consent of Seller. f. Buyer agrees that (a) it will use the Minimum Improvements as only a single family, owner -occupied homes, (b) it will not seek exemption from real estate taxes on the Property under State law, and (c) it will not transfer or permit transfer of the Property to any entity whose ownership or operation of the property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of New Hope or Seller in accordance with this Agreement). The covenants in this paragraph run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for at least 30 years after the Date of Closing. g. Buyer shall comply with all recommendations of the City Engineer, h. Buyer's construction plans shall be approved by the City Building Official. 10. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to Buyer and prior to receipt by Buyer of the Certificate of Completion of the Minimum Improvements, Buyer fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from Seller to Buyer to do so, then Seller shall have the right to re-enter and take possession of the Property and to terminate (and revert in Seller) the estate conveyed by the Deed to Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of Buyer and failure on the part of Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, Seller at its option may declare a termination in favor of Seller of the title, and of all the rights and interests in and to the Property conveyed to Buyer, and that such title and all rights and interests of Buyer, and any assigns or successors in interest to and in the Property, shall revert to Seller, but only if the events stated in this paragraph have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this paragraph, Seller shall have no right to reenter or retake title to and possession of a portion of the Property for which a Certificate of Completion has been issued. 11. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in Seller of title to and/or possession of the Property or any part thereof as provided in paragraph 10, Seller shall apply the Purchase Price paid by Buyer under paragraph 1 of this Agreement as follows: a. First, to reimburse Seller for all costs and expenses incurred by Seller, including but not limited to proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by Seller from the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of ownership thereof by Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by Seller assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof, and any amounts otherwise owing Seller by the Buyer and its successor or transferee; and b. Second, to reimburse Buyer for the balance of the Purchase Price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to Buyer upon delivery of executed, recordable warranty deed to the Property by Buyer to Seller. 12. Notices. All notices required hereunder shall be in writing and shall be deemed to have been duly given and received (a) two (2) business days after depositing of the same in the mail if sent by regular, registered or certified mail, postage prepaid, to the party to whom directed, at such party's address herein set forth; or (b) upon delivery, or attempted delivery if delivered by overnight courier service or hand delivery. Any party shall have the right to designate any other address for notice purposes by written notice to the other party in the manner aforesaid. The addresses of the parties are as follows: SELLER: Economic Development Authority in and for the City of New Hope Kirk McDonald, Executive Director 4401 Xylon Avenue North New Hope, MN 55428-4898 with copy to: Stacy A. Woods, New Hope Assistant City Attorney Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 BUYER: Novak -Fleck Incorporated 8857 Zealand Avenue North Brooklyn Park, MN 55445 13. No Broker Involved. Seller and Buyer represent and warrant to each other that there is no broker involved in this transaction with whom it has negotiated or to whom it has agreed to pay a broker commission. Buyer agrees to indemnify Seller for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and Seller agrees to indemnify Buyer for any and all claims forbrokerage commissions or fmders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Seller. 14. Remedies. If Buyer defaults under this Agreement, Seller shall have the right to terminate this Agreement by giving written notice to Buyer as provided by law. If Buyer fails to cure such default as provided by law, this Agreement will terminate, and upon such termination Seller will retain the Earnest Money and neither party shall have any rights or obligations against the other except rights or obligations under this Agreement which provide for continued exercise following the cancellation or other termination of this Agreement. If Seller defaults under this Agreement, Buyer's only remedy shall be to terminate the Agreement and recover the Earnest Money paid to Seller. Buyer shall not have any right to the remedy of specific performance 15. Assignment/Prohibition Against Transfer of Property. Buyer may not assign its rights and obligations hereunder without the prior written consent of Seller, which consent may be granted or withheld by Seller in its sole discretion. 16. Miseellaneous. This Agreement shall be governed by the laws of the State of Minnesota. No amendment of this Agreement shall be valid or binding unless executed by authorized representatives of both Seller and Buyer. The headings and captions of this Agreement are for the convenience of the parties only and shall not be looked to in the interpretation or enforcement of this Agreement. Seller and Buyer acknowledge and agree that each has had opportunity to participate in the drafting of this Agreement and accordingly acknowledge and agree that this Agreement as a whole and each of is clauses are not to be interpreted in favor of or against either party. This Agreement may be signed in counterpart, with each copy of the Agreement binding upon the signing party at the time of signing and together which shall constitute a single document. 17. Survival. The Parties representations contained herein shall survive the delivery of the Deed. IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the above date ("Effective Date"). SELLER: BUYER: Economic Development Authority in and Novak -Fleck Incorporated for the City of New Hope By: By: Richard M. Novak Kathi Hemken Its: President Its: President Dated: August___, 2019 Dated: August , 2019 By: Kirk McDonald Its: Executive Director Dated: August___, 2019 STATE OF NIINNESOTA ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of August, 2019, by Kathi Hemken and Kirk McDonald, the President and Executive Director, respectively, of the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota. Notary Public 10 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of August, 2019, by Richard M. Novak, the President of Novak -Fleck Incorporated, a Minnesota corporation, on behalf of said corporation. DRAFTED BY: Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, #201 Brooklyn Park, MN 55443 (763)424-8811 11 Notary Public Exhibit A Permitted Encumbrances 1. Restrictions, reservations, covenants and easements relating to use or improvement of the Property without effective forfeiture provisions of record on the Effective Date; 2. Building and zoning laws, ordinances, city, state and federal regulations; Governmental regulations, if any, affecting the use and occupancy of the Property; 4. All rights in public highways upon the land; Easements for public rights -of -way and public and private utilities, which do not interfere with present improvements; 6. Reservations to the State, in trust for the taxing districts concerned, of minerals and mineral rights in those portions of the Property the title to which may have at any time heretofore been forfeited to the State for nonpayment of real estate taxes. 7. The lien of unpaid special assessments, if any, not presently payable but to be paid as a part of the annual taxes to become due; 8. The lien of unpaid real estate taxes, if any, not presently payable but to be paid as part of the annual taxes to become due. 12 See attached. Exhibit B Well Sealing Certificate 13 MINNESOTA DEPARTMENT OF HEALTH Minnesota Well and Boring II I (` QQ /j WELL OR BORING LOCATION WELL AND BORING SEALING RECORD Sealing Cj V J `t County Name Minnesota Unique Well Na Hennepin Minnesota Statutes, Chapter 1031 P or W-series No, dam' rl Township Name Tmvnship No Range No. Section No. FraotWn (sm Ig.) Dale Sealed Dale Well or Boring Constructed New Hope 118 21 08 NE ',NW ,, 07/24/2019 Unknown GPS LOCATION - decimaldegrees (to lour decimal places) Depth Time Sealing_55 tl. ,,.,1�,,., Original Depth__ Ul u`..11OL It. Lalilude 45..Q-4$0�5 —_ Longitude �-93.374444 at of AQUIFER(S) STATIC WATER LEVEL N r�ra Street Address o Firs Number and City 01 Wall ar Owin Localion . Singlu Aquilor ❑ Mulliaqulfar nq n Measured Date MeasuredO-71-24/2-/� L j Estimated OL f Pen17$j711vi�lnia AVi luL NgA WBLL/BORWG X X Water -Supply Well 1. Env. Well Show exact lecatien of welt or Wring Sketch map of well or boring in section gtid with -X.- ocalion, show nnpg pfopaNy ❑ Temp- Env. Well �; Other_ _ _4rj_--R. �I below ,above land surface N y il�5r�ds,wrdlwRdingS CASINGTYPE(S) Weld rJ y. Steel ; Plastic ❑Tile -- ••4•• ••'`" •--L -' �;,�� WELLHEAD COMPLETION li __.}...._F-. E ry 9 I Outside: [ ? Pitless Adapter/Unit ;, At Grade Inside: ',j Basement Offset 56 mAt - _L I Well Pit ' Well House 1 =Buried Other Well Pit 5 crop- 0 — _ Buried Other For mLdUple temporary environrnental wells, prov additional location CASING(S) information, a site sketch, and geology on a separate page- Diameter Depth Set in oversize hole? Annular space initially grouted? PROPERTY OWNER'S NAMEXOMPANY NAME _6 .___- in. from_ —_ lo__5_L ft. � Yes y No _' Yes ❑ No g< Unknown City Of New HpPe- _ _ in. from to _ _ 11. -.i Yes f�. No `j Yes ,_ No ._; Unknown Peopwty owner$ mailing address if dirferaol than well loaLtion address indicated above 4401 Xylon Avenue North in, from to _ ft ] Yes , No ❑ Yes ❑ No Unknown New Hope MN 55428 SCREEWOPEN HOLE WELL OWNER'S NAME/COMPANY NAME Screen from_ 51 ---_-to •55 __II. Open Hole from__ to ft City Of New Ho OBSTRUCTIONS L! Rods/Drop Pipe ^' Check Valve(s) _ Debris - Fill X No Obstruction Well owner's mailing address it different than property owner's address indicated above Type of Obstructions (Des(ribe)_ Obstructions removed? i Yeses No Describe PUMP XNol Present Present, Removed Prior to Sealing '`i Other GEOLOGICAL MATERIAL I COLOR HARDNESS OR FORMATION FROM TO It not known, indicate estimated formation log from nearby well or boring- REMARKS, SOURCE OF DATA, DIFFICULTIES IN SEALING MINN DEPT OF HEALTH COPY H 368542 HE-01434, rC ID# 53159 METHOD USED TO SEAL ANNULAR SPACE BETWEEN 2 CASINGS, OR CASING AND BORE HOLE X No Annular Space Exists ❑ Annular Space Grouted with Tremie Pipe [; Casing Perforation/Removal Casing Diameter in. from_ lo_ IL Perforated Removed in from to_ If. Perforated "Removed Type of Perforatpt VARIANCE Was a variance granted from the MDH for this well? ' II Yes )(, No TNk GROUTING MATERIAL(S) (One bag of cement = 94 lbs., one bag of bentonite = 50 Ibs.) Grouting Malerial_CeIT)ent _ Irom_ 55 to —6 ft, yards 3 bags from___ lo___ ft. yards bags from,_-- to_ IL yards bags OTHER WELLS AND BORINGS Other unsealed and unused well or boring on property? U Yes X No How many? LICENSED OR REGISTERED CONTRACTOR CERTIFICATION This well or boring was sealed in accordance with Minnesota Rules, Chapter 4725. The Information contained in this report is [rue to the best of my knowledge. T.L. Stevens Well Licensee I , w Certified iu8 Steve Willprecht Name of Person SaalOg Weil or Boring 1838 License or RB'dfldil No. 1838 07/24/2019 Certified Rep- Na Date 9n 7R Exhibit C Restrictive Covenants See attached. 14 RESTRICTIVE COVENANTS THESE RESTRICTIVE COVENANTS ("Agreement") dated effective the day of , 2019, by and between the City of New Hope, a Minnesota municipal corporation ("City") and Novak -Fleck Incorporated, a Minnesota corporation ("Novak -Fleck"). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between the City and Novak -Fleck dated effective August, , 2019 ("Purchase Agreement"), Novak - Fleck purchased the real property located at 5212 Pennsylvania Avenue North in the City of New Hope from City, which property is legally described as "Lot 7, Block 5, Sunset Heights, Hennepin County, Minnesota" ("Property") which purchase closed on , 2019; and WHEREAS, Novak -Fleck has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and Novak -Fleck have agreed Novak -Fleck shall complete the construction of the home as described in the Purchase Agreement within one (1) year of the date of closing on the purchase of the Property; and WHEREAS, the City and Novak -Fleck have agreed the City may levy a $20,000.00 assessment against the Property prior to Novak -Fleck's sale of the Property with the completed home if it is not being sold to an owner -occupant. Further, said assessment may be certified to Hennepin County for collection with real estate taxes payable in a single installment; and WHEREAS, compliance with the restrictions imposed by this Agreement is an additional consideration for the sale of the Property to Novak -Fleck. NOW THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, Novak -Fleck agrees as follows: AGREEMENT 1. Restrictive Covenants. Novak -Fleck hereby covenants and agrees with the City that the Property is restricted by the following covenants: a) The initial conveyance of the residential dwelling ("Dwelling") constructed upon the Property will be only to "Owner-occupant(s)". "Owner -occupant" is defined as an individual that purchases the Property from Novak -Fleck with a bona fide intent to reside in the Dwelling as a primary residence; and b) The Dwelling constructed on the Property shall be occupied only by the Owner - occupant, and/or by the "Immediate Family Member(s)" of the Owner -occupant for a period of two (2) consecutive years commencing on the date of initial conveyance to an Owner -occupant. "Immediate Family Member" shall only mean a parent, step-parent, child, step -child, grandparent, grandchild, brother, sister, uncle, aunt, nephew or niece. Relationship may be by blood or marriage. 2. Release of Restrictions. The Property will be released from the restrictions imposed by this Agreement as follows: a) Upon the issuance of a Certificate of Occupancy for a Dwelling constructed upon the Property and receipt by the City of an Affidavit signed by Novak -Fleck and the Owner -occupant verifying the Owner -occupant's intent to occupy the Dwelling as a primary residence the Property shall be released from the restriction stated in paragraph 1(a) above. b) The Property shall be released from the restriction of paragraph 1(b) above on the two (2) year anniversary of the date the Property was conveyed in compliance with paragraph 1(a). 3. Waiver by City. Notwithstanding the restrictions stated above, the City may waive the restrictions stated above upon a finding of hardship or other extenuating circumstances sufficient to justify the waiver in its sole discretion. 4. A eement to Assessment. Novak -Fleck acknowledges and agrees the City may levy a $20,000.00 assessment against the Property if. (a) the Property is not improved with a single family house on or before , 2020; and/or (b) if Novak -Fleck sells the Property with the completed home to a non -owner -occupant in violation of paragraph 1(a) above. Further, Novak -Fleck agrees the assessment provided by this paragraph may be certified to Hennepin County as a special assessment and collected with the real estate taxes against the Property in a single installment. 5. Waiver by Novak -Fleck. Novak -Fleck expressly waives objection to any irregularity with regard to any assessment levied against the Property per this Agreement or any 2 claim that the amount thereof levied against the Property is excessive, together with all rights to appeal the assessment in the courts. 6. Additional Remedies. It is further understood that if Novak -Fleck or an Owner - occupant should breach their respective obligations under this Agreement, the City will suffer irrevocable harm from which a recovery of money damages would be an inadequate remedy. It is therefore agreed that the City shall be entitled, as a matter of right, in any Court of competent jurisdiction to a mandatory injunction restraining and enjoining pending litigation, as well as upon final determination thereof, from attempting to violate or violating this Agreement. It is further agreed that the City's rights to such injunctive relief shall be cumulative with and in addition to any other rights, remedies or actions which the City may have. 7. Novak -Fleck's Successors. This Agreement shall not be terminated by: a) Voluntary dissolution of Novak -Fleck or any parent, subsidiary or successor of Novak -Fleck; b) Merger whereby Novak -Fleck (or such parent, subsidiary or successor of Novak - Fleck) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of Novak -Fleck. In the event of any such merger or consolidation or transfer of assets, the provisions of this Agreement shall inure to the benefit of and shall be binding upon the surviving or resulting entity to which such assets shall be transferred. 8. Running of Benefits and Burdens. All provisions of this Agreement, including the benefits and burdens run with the land and are binding upon and shall inure to the benefit of the assigns and successors of the parties to this Agreement, such that the provisions of this Agreement shall restrict the Property, and subdivision thereof, notwithstanding any sale or transfer of the Property or any subdivision thereof to a third party. 9. Notices. Any notice to be given by a party to this Agreement shall be personally delivered, sent by registered or certified mail, sent by confirmed electronic transmission, or sent by a nationally recognized overnight courier that issues a receipt to the address set forth for the other party in this section (or to such other address as may be designated by notice to the other parties), and shall be deemed given upon the earlier of personal delivery, the date postmarked, confirmation of electronic transmission, delivery to such courier or the refusal to accept such service. If to the City: City of New Hope Attn: Kirk McDonald 4401 Xylon Avenue North New Hope, MN 55428 kmcdonaldAci.new-hope. mn.us If to Novak -Fleck: Novak -Fleck Incorporated Attn: Richard M. Novak 8857 Zealand Avenue North Brooklyn Park, MN 55445 10. Governing Law. All matters relating to the interpretation, construction, validity and enforcement of this Agreement shall be governed by the internal laws of the State of Minnesota. 11. Cu[nulative Rial;ts. Each and all of the various rights, power and remedies of the City in this Agreement shall be considered as cumulative with and in addition to any other rights, powers, or remedies of City, and no one of them is exclusive to the others, or is exclusive to any other rights, powers and remedies allowed by law. The exercise or partial exercise of any right, power or remedy shall neither constitute the election thereof, nor the waiver of any other power or remedy. 12. Amendment. This Agreement may be modified or amended only by a written instrument executed by Novak -Fleck and the City. IN AGREEMENT, the parties have executed these Restrictive Covenants effective the day and year first above -written. 4 City of New Hope Novak -Fleck Incorporated I: Kirk McDonald Its: City Manager Richard M. Novak Its: President Dated: _ 2019 Dated: .2019 STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of , 2019, by Kirk McDonald, the City Manager of the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. (Notary Public Seal) Notary Public STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of 2019, by Richard M. Novak, the President of Novak -Fleck Incorporated, a Minnesota corporation, on behalf of said corporation. (Notary Public Seal) Notary Public Drafted By: JENSEN SONDRALL PERSELLIN & WOODS, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763)424-8811 P:\Attomey\SAS\l Client Files\2 City of New Hope\99-1 1429 5212 Pennsylvania Ave N\Restrictive Covenant - 5212 Pennsylvania Ave. N.docx Exhibit D Assessment Agreement See attached. 15 ASSESSMENT AGREEMENT THIS ASSESSMENT AGREEMENT ("Agreement") dated effective as of the _ day of , 2019, by and between the City of New Hope, a Minnesota municipal corporation ("City") and Novak -Fleck Incorporated, a Minnesota corporation ("Novak -Fleck"). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between City and Novak -Fleck dated effective August , 2019 ("Purchase Agreement") Novak -Fleck purchased the real property located at 5212 Pennsylvania Avenue North in the City of New Hope from City, which property is legally described as "Lot 7, Block 5, Sunset Heights, Hennepin County, Minnesota ("Property") which purchase closed on , 2019; and WHEREAS, Novak -Fleck has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and Novak -Fleck have agreed Novak -Fleck shall complete the construction of the home as described in the Purchase Agreement within one (1) year of the date of closing on the purchase of the Property; and WHEREAS, the City and Novak -Fleck have further agreed the City may levy a $20,000.00 assessment against the Property prior to Novak -Fleck's sale of the Property with the completed home if it is not being sold to an owner -occupant. Further, said assessment may be certified to Hennepin County for collection with real estate taxes payable in a single installment. AGREEMENT 1. Com letion of Project. Novak -Fleck hereby covenants and agrees with the City that the new home on the Property shall be fully completed on or before 2020. Fully completed shall mean the Property shall be improved with a new single- family house. 2. Agreement to Assessment. Novak -Fleck acknowledges and agrees the City may levy a $20,000.00 assessment against the Property i£ (a) the Property is not improved with a single-family house on or before _ , 2020; and/or (b) if Novak -Fleck sells the Property with the completed home to a non -owner -occupant. Further, Novak - Fleck agrees the assessment provided by this paragraph may be certified to Hennepin County as a special assessment and collected with the real estate taxes against the Property in a single installment. 3. Waiver by Novak -Fleck. Novak -Fleck expressly waives objection to any irregularity with regard to any assessment levied against the Property per this Agreement or any claim that the amount thereof levied against the Property is excessive, together with all rights to appeal the assessment in the courts. 4. Novak -Fleck's Successors. This Agreement shall not be terminated by: a) The voluntary dissolution of Novak -Fleck or any parent, subsidiary or successor of Novak -Fleck; b) Merger whereby Novak -Fleck (or such parent, subsidiary or successor of Novak - Fleck) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of Novak -Fleck. In the event of any such merger or consolidation or transfer of assets, the provisions of this Agreement shall be binding upon the surviving or resulting entity to which such assets shall be transferred. 5. Running of Benefits and Burdens. All provisions of this Agreement, including the benefits and burdens run with the land and are binding upon and shall inure to the benefit of the assigns and successors of the parties to this Agreement, such that the provisions of this Agreement shall restrict the Property, and subdivision thereof, notwithstanding any sale or transfer of the Property or any subdivision thereof to a third party. 6. Notices. Any notice to be given by a party to this Agreement shall be personally delivered, sent by registered or certified mail, sent by confirmed electronic transmission, or sent by a nationally recognized overnight courier that issues a receipt to the address set forth for the other party in this section (or to such other address as may be designated by notice to the other parties), and shall be deemed given upon the earlier of personal delivery, the date postmarked, confirmation of electronic transmission, delivery to such courier or the refusal to accept such service. If to the City: City of New Hope Attn: Kirk McDonald 4401 Xylon Avenue North New Hope, MN 55428-4898 kmedonald ci.new-ho e.mn.us If to Novak -Fleck: Novak -Fleck Incorporated Attn: Richard M. Novak 8857 Zealand Avenue North Brooklyn Park, MN 55445 7. Governin;, Law. All matters relating to the interpretation, construction, validity and enforcement of this Agreement shall be governed by the internal laws of the State of Minnesota. 8. Cumulative Rights. Each and all of the various rights, power and remedies of the City in this Agreement shall be considered as cumulative with and in addition to any other rights, powers, or remedies of the City, and no one of them is exclusive to the others, or is exclusive to any other rights, powers and remedies allowed by law. The exercise or partial exercise of any right, power or remedy. shall neither constitute the election thereof, nor the waiver of any other power or remedy. 9. Aniendment. This Agreement may be modified or amended only by a written instrument executed by Novak -Fleck and the City. IN AGREEMENT, the parties have executed this Assessment Agreement effective the day and year first above -written. City of New Hope Kirk McDonald Its: City Manager Dated: Novak -Fleck Incorporated 2019 Dated: STATE OF MINNESOTA }ss. COUNTY OF HENNEPIN Richard M. Novak Its: President 2019 The foregoing instrument was acknowledged before me this day of , 2019, by Kirk McDonald, the City Manager of the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. (Notary Public Seal) W Notary Public STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this day of 2019, by Richard M. Novak the President of Novak -Fleck Incorporated, a Minnesota corporation, on behalf of said corporation. (Notary Public Seal) Notary Public Drafted By: JENSEN SONDRALL PERSELLIN & WOODS, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763)424-8811 P:\Attomey\SAS\l Client Files\2 City of New Hope\99-11429 5212 Pennsylvania Ave N\Assessment Agreement - 5212 Pennsylvania Ave. N.doex 4 Exhibit E Request for Proposal ("RFP") Guidelines See attached. 16 The City of New Hope Economic Development Authority (EDA) is requesting proposals from builders to purchase the vacant lot located at 5212 Pennsylvania Avenue North, for the construction of a new single- family home. The lot is being offered as part of the city's scattered site housing program, which focuses on the removal or rehabilitation of distressed properties. The site currently contains a vacant home that will be razed by the EDA in the coming weeks. Enclosed, please find the Proposal Form and Guidelines for submitting a proposal. To receive consideration, proposals must be submitted on a completed Proposal Form and the required attachments and additional information must be included. Incomplete proposals will not be considered. Proposals are due on Wednesday, July 10, 2019, at noon. If you have questions about the RFP process or the enclosed Guidelines, please contact Jeff Alger in the Community Development Department at the city of New Hope, 763-531-5119 or jalger@newhopemn.gov. Thank you for your interest! Regards, .11 Jeff Alger Community Development Specialist General Notes: Only complete proposals will be considered. The city retains absolute discretion in deciding whether to accept any particular proposal. 2. Proposals must be submitted by state -licensed builders who have built at least three houses in Minnesota in the last five years, or have equivalent experience acceptable to the city. The house may be built speculatively or for a specific buyer. 3. The city is interested in proposals that will generate the highest valued home possible. The new house must be an owner -occupied, single family home. Owner occupancy restrictions will be documented in the development agreement and secured with a recorded restrictive covenant. The occupancy requirement shall apply to the first buyer only and shall last for a period of two years. Full details regarding the legal language of this requirement are available upon request. 4. The city would like to see a two-story home placed on the site, as the two-story homes built in the pro- gram have commanded the highest prices when compared to other home styles such as split -entry. Preference will be given to concept plans that propose to finish the most square footage and those that include high quality exterior materials and upgraded interior amenities. 5. Following proposal approval by the City Council, the selected builder will be asked to enter into a purchase and development agreement. This agreement will address the sale of the lot and secure all applicable development and performance standards outlined in the proposal guidelines. At the time of this agreement the builder must submit a $2,000 nonrefundable earnest money deposit. 6. Construction of the new house must be completed within one year of closing on the purchase of the lot. j Specifications: 1. Utilities a) All utility service lines shall be underground. Utilities may locate necessary facilities such as pedestals or boxes in the street right-of-way or utility and drainage easements. b) Any expenses for connection of the house to private utilities shall be the responsibility of the builder. c) Municipal water is available into the lot on the west side of the property and the location of the service will be marked onsite. The EDA will install a new curb stop and box in conjunction with the demoli- tion of the home. d) Municipal sanitary sewer is available into the lot on the west side of the property and the location of the service will be marked onsite. The EDA will line the existing service from the termination point all the way to the main line in conjunction with the demolition of the home. 2. Building Standards and Design Guidelines a) All site improvements shall comply with the New Hope City Code. b) The parcel is located on the corner of Pennsylvania and Oregon avenues. Orientation of the house is at the discretion of the builder - it may face either Pennsylvania Avenue North or Oregon Avenue North. c) The house shall have at least three (3) finished bedrooms and two (2) finished bathrooms. d) The house shall have an attached garage that will accommodate a minimum of two (2) vehicles. Three (3) stall garages are preferred. e) The design should emphasize the front door as the focal point for the front of the house. A large and usable front porch is desired. Garage door dominance in design should be minimized as much as possible. f) The driveway for the new home must be completely new and fully paved from the street to the gar- age. The demolition contractor will leave a portion of the old driveway as a construction entrance. This remaining section of the old driveway must be fully removed with the construction of the new home. Specifications: e) Plans should present a balanced and pleasing distribution of wall and window areas from all views. Blank walls are not permitted. To the extent that southern exposures are present, house designs are expected to enhance wintertime natural light and passive solar heating. f ) No equipment such as air-conditioning cooling structures or condensers that generate noise shall be located within a side setback or drainage and utility easement. g) Exterior materials (siding, soffit, doors, and windows) shall be low maintenance. The use of brick or stone accents is preferred. Vinyl or other low maintenance siding materials are generally acceptable and can be made more desirable through the use of shakes, fish scales or other styles to break up the pattern. 3. Landscaping a) The lot shall be landscaped to be aesthetically pleasing in all seasons. Land forms and plant materials shall be used to define the site and blend neatly with adjoining property. The lot area remaining after providing for off-street parking, sidewalks, driveways, buildings, and other requirements shall be landscaped using ornamental grass, shrubs, trees or other acceptable vegetation or treatment generally used in landscaping. The use of grass seed or hydro -seed is not acceptable for restoration of disturbed areas. All grass that is planted must be sod. Additionally, all lawn areas must be irrigated with underground irrigation systems. b) A minimum of one (1) large -species deciduous shade tree shall be planted in the front yard. A minimum of two (2) large -species deciduous shade tree shall be planted in the side or rear yard. Trees should be a minimum of 2" in diameter. A list of prohibited trees is attached. 4. Setbacks Front Yard Rear Yard Side Corner Interior Side Yard Interior Side (south, abutting (north) (west, abutting Attached Garage Yard House Oregon) Pennsylvania) (east) (east) 25 feet 25 feet 20 feet 5 feet 10 feet Specifications: 5. Builder Selection Criteria a) Builder must a licensed in the State of Minnesota as a Residential Building Contractor. b) Builder shall provide the addresses of three houses they have built in Minnesota within the last five years, or evidence of qualification acceptable to the EDA. c) Builder must be capable of completing the house within one year of closing on the purchase of the lot. 6. Required Attachments by Builder a) Site plan showing the layout of the home on the lot. Please include dimensions and setbacks. b) Floor plans with dimensions. Clearly indicate square footages of each floor. c) List overall square footage. d) List total finished square feet. e) Elevations, must indicate types of exterior materials (color elevations preferred). f) Narrative description of the interior trim package. Include description of flooring. g) Estimated sales price of the home. h) Pictures of similar homes (if available). 7. Attachments • Location map • Sample lot layout • Windsor Ridge Development Update - May 2019 • Prohibited tree list This lot is being offered at a minimum base price of $60,000. The EDA will consider higher offers for the lot. However, submitting a higher offer will not guarantee selection of your proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase this lot for $ ($60,000 minimum), and build a new single-family house in accordance with the RFP guidelines. If a builders proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name: State License Number: Telephone: E-mail Address: City/State/Zip: Signature: Date: Print Name and Proposals are due by Wednesday, July 10, 2019, at noon Submit this proposal form and required attachments to: Jeff Alger City of New Hope I Community Development Specialist 4401 Xylon Avenue North I New Hope, MN 55428 763.531.5119 jalger@newhopemn.gov Proposals may be submitted by hand delivery, U.S. Mail, or email Exhibit F Buyer's Proposed Plans See attached. P:\Attorney\SAS\l Client Files\2 City of New Hope\99-11429 5212 Pennsylvania Ave N\Purehase and Redevelopment Agreement 5212 Pennsylvania Ave N.docx 17 This lot is being offered at a minimum base price of $60,000. The EDA will consider higher offers for the lot. However, submitting a higher offer will not guarantee selection of your proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase this lot for $ 1& 5 0 0 0 ($60,000 minimum), and build a new single-family house in accordance with the RFP guidelines. If a builders proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name.-M CU 9,& ^ 2L"t Y VA C_. State License Number. A (Z O 1 io l� I Telephone: (9 �i — L4 L &mail�i tom. t1 5 ' R� — Address: ity/StatelZip:&&.M,ieA Pc�=- �C� Date:' 1 8 1_j Proposals are due by Wednesday, July 10, 2019, at noon Submit this proposal form and required attachments to: Jeff Alger City of New Hope I Community Development Specialist 4401 Xylon Avenue North I New Hope, MN 55428 763.531.5119 jalger@newhopemn.gov Proposals may be submitted by hand delivery, U.S. Mail, or email +lvc- . Novak -Fleck Homes Overview • Two-story home design • Above average curb appeal • High level trim package for cabinets, flooring, doors and fixtures • 4 bedrooms • 4 baths ---1 upper level full bath, private % master bath, % basement bath, and main level %Z bath • Master suite with walk-in shower and walk-in closets ■ Oversized 3 car garage • 2,805 finished square feet • Above average exterior finishes with stone pillars and additional stone on garages and accent boards around windows and doors • Land offer $65,000 Proposed Sale Price: $401,600 Novak -Fleck Inc. 8857 Zealand Ave N. Brooklyn Park MN 55445 Proposal Specifications 5212 Pennsylvania Avenue N. New Hope ****Same home as built on 4511 Boone Ave N. a bit more upgrade 4 Bedroom, 4 Bath Main Level 959 finished square feet Upper Level 1066 finished square feet Basement Level 780 finished square feet Total Finished Square feet 2805 Specifications and plans to be built All work and materials to meet applicable building codes Structural 1. Poured wall foundations 2. Nine -foot -tall ceilings on the main floor 3. Eight -foot -tall ceilings on the upper level 4. Eight -foot ceilings on the basement and bedroom areas 5. Watchdog waterproofing system with 2" exterior foundation insulation 6. Drain tile with radon vented and sump pump 7. 2 x 6 framed exterior walls 8. 2 x 4 framed exterior garage walls 9. Roof trusses and floor trusses 10. %2 05B exterior wall sheathing 11. % tongue and groove OSB sub floor 12. Upgraded architectural roof shingles 13. Fiberglass insulation in framed exterior house walls and attic 14. Closed cell spray foam rims 15. Foam exterior foundation walls 16. Exterior house wraps Lo-E Vinylite vinyl windows 17. Lo-E Vinylite vinyl windows 18. Lo-E Vinylite patio door 19. Vinyl siding 20. Gutters 21. Aluminum Soffit, fascia 22. LP tri boards on the front per plan 23. 16'x8' and a 9'x8' raised panel steel overhead garage door 24. Exterior stone per plan Floor Coverings 1. Wood flooring in the kitchen and dining rooms 2. Ceramic tile floors in upper level bathrooms 3. Upgraded carpet in the balance of the bedrooms, stairs, family room and living room Plumbing 1. Stainless steel sink 2. Bath fixtures to be white 3. Brushed nickel faucets 4. Fiberglass tub shower surrounds in both the upper bath hall 5. Fiberglass tub shower surround in master bath 6. 50 gallon electric water heater, 7. 1 basement floor drain 8. Lower level bath rough -in, in the basement 9. Two exterior water taps 10. Water supply box for the kitchen refrigerator 11. Irrigation system Heating 1. 90%+ efficient direct vent furnace or equal 2. Central air conditioning 3. Air exchanger 4. Installed ducting for dryer venting to the outside 5. Vented in bath Electric 1. 150 Amp electric service 2. Smoke detectors, COz per code 3. Wire house to code, Outlet spacing to code 4. Two exterior outlets 5. Sealed outlet boxes for exterior electrical 6. Low voltage package allowance 7. 5 LED lights (similar to recessed cans), locations to be selected Appliance 1. Appliance package includes stainless steel refrigerator, microwave, dishwasher and electric stove. A laundry room washer and dryer package are also included. Cabinets, Countertops, Doors and Trim 1. Upgraded 42" uppers with large crown molding and poplar shaker style cabinets 2. Cultured marble vanity tops in bathrooms 3. Stained poplar 1x4 headers and sills casing 4. Stained 3 %" poplar base 5. 3 panel painted interior doors 6. Brushed nickel hinges and hardware 7. Brushed nickel levered door knobs 8. Granite or quartz included in kitchen Allowances 1. Appliance allowance $4,100 2. Lighting allowance $1,700 3. Flooring allowance $9,000 4. Walk-in shower floor base allowance (for mud curb) $1,200 5. Granite or quartz allowance $5,000 6. Landscaping/Irrigation allowance $12,000 7. Tree removal allowance $2,000 8. Gutter allowance $1,000 Miscellaneous 1. Paint includes entire home with two layers of Essential Grey, Sherwin Williams flat paint, ceilings painted white 2. Generous $12,000 landscaping allowance to include mulch and edging around the house, retaining wall, sod on front sides and back as required by the city, irrigation, two rear yard trees and two front yard trees. Upgrades are on the attached breakdown and include the following: 1. Fireplace 2. Soaking tub in upper level bath 3. Walk-in ceramic tiled shower in master ($1,200 allowance for mud curb base) 4. Upgraded faucets in kitchen and baths 5. LED lighting adding in kitchen, living room, and master shower 6. Upgraded garage doors with glass inserts 7. Upgraded iron railings 8. Upgrade to knockdown ceilings 9. Oversize 3 car garage 10. Granite and quartz at buyer's digression in kitchen ($5,000 allowance) 11. Ceiling fan in master bedroom 12. Wood flooring in kitchen and dining room ($9,000 allowance) 13. Finished staircase and completely finished lower level 14. Upgraded kitchen cabinetry with large crown molding and 42" upper shaker style cabinets 15. Upgraded stone exterior with additional stone on garage 16. Generous allowances for flooring, lighting, appliances, granite and landscaping *****See attached breakdown list for additional allowances and upgrades in this home PACKAGE PRICE: $401,600 !:: .i#f■llltt� — �-■iiurrtiriniririn,_ - — ��aue■■,un■nnu■e_�_ MINIM -Ri Hill -- fj f ^ir 1RFDL iL7. .' 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That the sale of the Property by the EDA to Novak -Fleck Incorporated, for the purchase price of $65,000.00, with other terms and conditions as set forth in the Purchase and Redevelopment Agreement attached hereto as Exhibit A, is approved subject to the review and approval by the City Attorney of the final language and exhibits to the Purchase and Redevelopment Agreement relating to the closing on the sale of the Property, it being in the best interest of the EDA to sell the Property for redevelopment and construction of a single-family home in accordance with the City's scattered site housing program and policy. 3. The EDA shall use due diligence for selling the Property to Novak -Fleck Incorporated, for the construction of a single-family home, so as to return the Property to the tax rolls for the benefit of all taxing jurisdictions. 4. The President, Executive Director and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the sale of the Property in accordance with the Purchase and Redevelopment Agreement. Dated the 12th day of August 2019. �J Kathi en, Presi t Attest Kirk *vicDonald, Executive Director Houston I lomes "19031" This lot is being offered at a minimum base price of $60,000. The EDA will consider higher offers for the lot. However, submitting a higher offer will not guarantee selection of your proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase this lot for $ (560,000 M111iinU M), a:id build a new single-family house in accordance with the RFP guidelines. �p2i,s ' F� R/ # /9a31 ` `[poi cacao Fwr PlAw *V/904vY If a builders proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name: kAoVS't-ots \ S 11.N" State License Number: <a 17-di'Is2 Telephone: 32d -112.0 -4 Z 1 A E-mail Address: Zo W'%Ilow1*= ?CS+!�'� City/State/Zip:_ 1t LR�*-_ C-,r , iYlry SM-KI Signature: Date: ;7 ' Print Name and Title: Aos'a'4 Fiv- S' i Ja, Proposals are due by Wednesday, July 10, 2019, at noon Submit this proposal form and required attachments to: Jeff Alger City of New Hope I Community Development Specialist 4401 Xylon Avenue North I New Hope, MN 55428 763.531.5119 jalger@newhopemn.gov Proposals may be submitted by hand delivery, U.S. Mail, or email Houston Homes, Inc 9020 Willowby Crossing Mapie Grove, MN 55311 320.420.4213 MaJ1whpustfla@Xrnail cow July, 9th, 2019 Dear Mr. Agler, Thank You for the email notification regarding the RFP opportunity for 5212 Pennsylvania Ave N. As you are aware, from our previous transaction, (for the property located at 7311 62nd Ave N.), Houston Homes Inc has been in the Real Estate and Construction Industry for over two decades. Our goal is to offer a finished house product that is both value and quality enriched. Our most recent new construction projects have been located in New Hope, Hanover, Monticello and Maple Grove. We are very interested in being the chosen builder for the lot located at 5212 Pennsylvania Ave N. , and have included 2 plan options with specifications for our building proposals that we feel would be a valuable asset to the existing neighborhood. Our internet presence on Houzz.com would provide you and or the city board members with some of our most recent projects and hopefully gain you the knowledge of who we are, and how we build. In addition, for your reference, the following addresses are some of our recent completed homes. 7311 62nd Ave N. New Hope, MN 6338 82nd 5t. NE Monticello, MN 8658 Bison Ave Monticello, MN 8689 Bison Ave Monticello, MN 5934 Deer St. Monticello, MN Sincerely, Matt Houston, President Houston Homes, Inc. Houston Homes, Inc 9020 Willowby Crossing Maple Grove, MN 55311 320.420.4213 Mattwhoustor Ogniail. com July 9th, 2019 Dear Mr. Alger, We feel that either of the attached 2 plan options would be wonderful options for the property located at 5212 Pennsylvania Avenue North, and would enhance the existing neighborhood dramatically. Plan # 19064 would have a front elevation 3 car garage with covered front porch with aluminum railing, large windows and stone accents, (facing Oregon Ave). The left elevation,(facing Pennsylvania) would include board and batten architectural elements and some windows that would be attractive while viewed from the West. Plan #19064 features include: Wood front porch with aluminum railing, premium vinyl siding, eyebrow dormers, large windows, stone accents, 1102 finished main floor square footage, 3 car attached garage, 1196 sq. ft finished on 2nd story, site finished painted in place millwork, upgrade hard surface and carpet floors, painted maple kitchen cabinets with soft close doors and drawers, stainless steel appliances, granite/quartz countertops, main floor fireplace with shiplap wall detail, 2nd story laundry, 4 bedroom, 3 bath. Total finished square footage (2298). Plan #19031 (Side Load Garage) Would have a 32' cedar front porch with aluminum railing, premium vinyl siding, board and batten accents, eyebrow dormer, and 10" architectural trim board collared columns. The left elevation,(facing Pennsylvania) would consist of a desirable 3 car garage with board and batten gables and would also be attractive while viewed from the West. Plan #19031 (Side Load Garage), features include: 3bed, 3 bath, 2064 total finished square footage on 2 floors, gas fireplace with shiplap detail and rustic mantel, upgraded hard surface and carpet floors, granite/quartz tops, maple cabinets with painted finish, soft close doors and drawers, 3 car garage, huge front porch with aluminum railing, site finished enameled millwork, 2nd story laundry, and stainless steel appliances. We feel that either of these options would be a great asset to the neighborhood and rely on the boards decision as to which one works the best for the city. If Houston Homes is chosen as the best option for the lot, our intentions would be to start immediately after closing on the lot and anticipate a 120 day build time. Although final numbers are not completed, based on previous similar projects we anticipate the asking price of either home to be in the lower $400's. Please feel free to contact us with any questions and thank you for your consideration of our proposals. Sincerely, Matt Houston, President Houston Homes, Inc. < CL) < rD Z: K ice:. Oregon Ave. e N Oregon Ave N r m T, m r m D O L li T- ni r m D O Z R A 60 C19 r 0C m r m m r r O 0 r b z c z T i t 30'-0. • � 6 •0' � 37 •m" Houston I lomes "19064" t i< CL) .CL) k ro � �, �vP N• r� Oregon Ave N Oregon Ave N K L " ��1 0 (V4 ,�,Jfolto �;O-b !� REAR ELEVATION SOKO f 13xfrRI'1 PROVIDE A WATER RESISTIVE 13ARRIER IYETAL LATH �_ RON T ELEVATION "`� VEMER V SCALE- 1/4"=V-0" 5CFE rZ-A Grr LfT =: =-ATrew fir. �`y�:S�Gs'�IIrL 5h�a•rl,�,u w ui L m = a ("will rw UM ]P." k,r c-L� �11 --.,. * 1Ckt4`i a Q 5r-m• T'-d• 25'-2• 6• —J. 12 CR5. V2- CONC. COW- FfG. 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R-5• MAX -II FOAM R-19 I P7LK IN5t1L ATION N _ 12 CIG'1< 12• CL*r- n4G P-2-val" oit G4 MW 3 1/' CONCRETE SLAB WIIT DRAINTILE � - • 4'-- RADON T fl0' BOTH 91DE6J T0° X I0" GCNC, FT- W/ 2 -Ire"' REBAR5 TWO STOFY WALL SECTION 42.0• SH 36 -2 5H 4254 1 SW 4254 R(O. 6' 0" X 0" RO. 3' 6" :C 4' 6^ RO, 3' 6" X W 6" u'.4 10'•4 7 e- © s. p a BEDROOM'2 BEDROOM 3 MASTER Im' m° x u' 0° m 14' 0" x W' 0° 9 BEDROOM _ m 13' B"XIS' m• x p0 m 4-0 m s � at m 2-6 7•b CO 7 LINEN 'm 12N M HALF WALL 7-s j 2J �. 2-B T nA CITY® N❑� T'-0' 3'•6- 3'•6" 6' C' 7••8' 9'-0- - - :� — BEDROOM "4 9TAT 3630 °4 b 12' 0" X II' 0" gr �^ L R.3' 6" 2-4 �1 r'T I 9W J(7 �+L�aC RO. 4' X 4' 0" IT'-10" i 2`-S" 4'-3` i. 20'-6" 4r-o• RAmCiR �Aii.1R Rr.b. mP.rem+ne. bt.xd—A e.tmn7taaT rTeil7:t BM.0 lRbowt vrK .b.3a 1..�Pnd �daga lb �aitl.wdtl..t�IIirdTs bid r'Sp.' PM+1t.e.w, titlnlspred6v �wq,u.ti rG 1e.. dos e[ ]f lyw Mowrdirifadi� lw9iri4*71+14`L.k ke�lOymiraedr. ii1 �1 dMA-p wef.Ow ■� d p).� k.ltetl.4.iWe.3d lab of M �tl'!>e. Witswb. o..Yow.48�dsi.e PW7 m1 b daf ardRwass..Pbwi I. bhqw.CseP.dla Opta�tLtspwldmwWT11.bwsfl}.tilamrlstitM*.tmA911 FZM .tort.. P.IhkdV .wl.bw�sraar�lew�wt�� Bain®txs7. SH 4260-2 1� I0 � 1`j uCo`i M 45N9%' P.aT_ xuE. w• . r o eEcfl W � xfm fL0'JR I'lfJl 15064 4 4 M Great Buy I lomes Members of EDA and City Council We appreciate your consideration for our proposed design to construct on your site. We have enjoyed a great working relationship with your city and staff and are grateful for the the opportunity to potentially partner up again. We are submitting similar but much Larger plan that we have in fact built in New Hope and surrounding cities as part of their EDA program, This plan has been well received and always sells before completion. We believe this plan will work particularly well given the existing neighborhood and would be a welcoming addition both to the surrounding neighbors and the end buyer. Our focus on nice curb appeal yet a plan not too overbearing was our goal here. This particular style has a very large bathroom finished in the basement that is connected to one bedroom and adds a nice twist to what people may think is just a standard plan. As a builder in the industry for roughly 25 years I have deep pride in the products I construct. I have extensive background in the higher end market so I naturally focus on quality and details. My goals are to not just make this home look nice for your acceptance, but to construct a quality home for the end buyer that will be an asset to them and the city for decades. I focus on quality subcontractors that perform their jobs well and with minimal disruption to the neighbors and a good working relationship with the city staff throughout the process. The house anticipated sale will be $360,000 5 bedrooms, 3 bath rooms Granite in Kitchen Engineered wood floors kitchen/ Dining Main Floor 1403 sf finished basement 1134 sf finished TOTAL 2537 sf Finished Interior to somewhat match attached pictures that were sent by email We are planning on an immediate start, with a move in date of Early Fall! As always, we are grateful to be considered again for another project. If at any time you have questions or concerns that I can address, never hesitate to contact me. 5incerefy, Glenn Hammer Great Buy Homes Inc. This lot is being offered at a minimum base price of $60,000. The EDA will consider higher uners iur Lit, lot. However, submitting a higher offer will not guarantee selection of your proposal. This proposal is not a purchase agreemerit or other binding contract. At this time, the builder is submitting a proposal to purchase this lot for $ 000 ($60,000 minimum), and build a new single-family house in accordance with the REP guid Ines. If a builders proposal is accepted by the EDA, builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name; 9,5 U State License Number:13c-G3/5'2 Telephone:. Cp�oZ — ", ■ E-mailr;7� . �d Address: a 157SVZIV bJ City1State1Zip4^5QK,4 f rlA ,5'�363 Signature,- _ _ Date:'��' Print Name and Title:_ GL601i ��►'��''��-,� Proposals are due by Wednesday, July 10, 2019, at noon Submit this proposal form and required attachments to: Jeff Alger City of New Hope I Community Development Specialist 4401 Xylon Avenue North I New Hope, MN 55428 763.531.5119 jalger@newhopemn.gov Proposals may be submitted by hand delivery, U.S. Mail, or email 12 6 FTONT TO REAR - rd g5-39 ROOF VENTS A5 RECCE) REAR ELEVATION NO SCALE LEFT ELEVATION NO SCALE RIGHT ELEVATION NO SCALE rb No, ,9, eo r-S A�� �OW4 ` � � .15A40/��iJ c�� i 43 eb 13 q.S sF 7-oT14 L tea'- ,p 1 i 30 `- S'00/ �� 61ge ,v�bw pew -r -64C' ti Y I m u `• _3i1L c �• I Now- A4 77L JS I I I I I I �.1 r - d •J' :n 5 T - .�.. �•i �.•• :dam _ .'.! - 1. ♦ }¢ r� 5 s _ �:� �ic� i. •,cis;: �� r1 F .r? :� �-?-t. • ;., fir.. _ - ._ _ .u;' �. - t'�' ,� yr��• ���i1` �'yd �_ - - w-Aryi " .� �,�RI:Gt�';1.- :n 'R:4S"'�4.t?ifa�•. c _ . " }?Tiy'1`-�n3m�;[+_•fin :3i�• 'yc .': �. , -,. :�: � AJ Budget & Return on Investment for 5212 Pennsylvania Avenue North EXPENSES AMOUNT Acquisition (including closing costs) $ (147,742.34) Legal(purchase) $ (1,176.00) Demolition survey $ (650.00) Demolition and site prep $ (23,890.00) Well sealing $ (1,630.75) 1st half real estate taxes $ (1,260.95) Lawn services $ (290.00) Utility billing $ (198.16) Closing costs for sale (estimated) $ (1,500.00) Legal costs for sale (estimated) $ (1,000.00) 2nd half real estate taxes (estimated) $ (630.48) Future lawn services (estimated) $ (100.00) Future utility billing (estimated) $ (93.00) TOTAL $ (180,161.68) REVENUE AMOUNT EDA (lot sale proceeds) $ 65,000.00 TOTAL $ 65,000.00 RETURN ON INVESTMENT TOTAL COST/REVENUE $ (115,161.68)-63.92% PROJECTED ADDITIONAL TAX REVENUE AMOUNT TOTAL COST/REVENUE Year 1 (2021) $ 1,713.56 $ (113,448.12) -62.97% Year 2 (2022) $ 3,427.12 $ (111,734.56) -62.02% Year 3(2023) $ 5,140.68 $ (110,021.00) -61.07% Year 4 (2024) $ 6,854.24 $ (108,307.44) -60.12% Year 5 (2025) $ 8,567.80 $ (106,593.88) -59.17% Year 10 (2030) $ 17,135.60 $ (98,026.08) -54.41% Year 15 (2035) $ 25,703.40 $ (89,458.28) -49.65% Year 20 (2040) $ 34,271.20 $ (80,890.48) -44.90% Year 25(2045) $ 42,839.00 $ (72,322.68) -40.14% Year 30 (2050) $ 51,406.80 $ (63,754.88) -35.39% Year 68 (2088) $ 116,522.08 $ 1,360.40 0.76% *Based on new home valued at $399,000 NOTICE OF PUBLIC HEARING SALE OF NEW HOPE EDA OWNED LAND 5212 PENNSYLVANIA AVENUE NORTH CITY OF NEW HOPE, MINNESOTA Notice is hereby given that the Economic Development Authority in and for the City of New Hope will meet at City Hall, 4401 Xylon Avenue North, New Hope, Minnesota on Monday, August 12, 2019, at 7 p.m. to hold a public hearing for the sale of New Hope EDA owned land located at 5212 Pennsylvania Avenue North, legally described as follows: Lot 7, Block 5, Sunset Heights Addition, Hennepin County, Minnesota PID # 08-118-21-21-0052 The New Hope EDA has received proposals for the development of a single-family home on the site, and the EDA will determine at the public hearing if the sale of 5212 Pennsylvania Avenue North is advisable. Such persons as desire to be heard with reference to the proposed sale will be heard at this meeting. This notice is given pursuant to Minnesota Statute 469.105. The terms and conditions of the sale, and further information can be reviewed at the Information Counter in City Hall, Monday through Friday, 8 a.m. to 4:30 p.m. Contact the Community Development Department (telephone 763-531-5110) with questions related to this application. Accommodations such as a sign language interpreter or large printed materials are available upon request at least five working days in advance. Please contact the city clerk to make arrangements (telephone 763- 531-5117). Dated: July 18, 2019 Valerie Leone City Clerk (Published in the Crystal, Robbinsdale, New Hope, Golden Valley Sun -Post on July 25, 2019) *Project location map on back. Request for Action Agenda Section EDA June 10, 2019 Approved by: Kirk McDonald, City Manager Item Nu4 mber Originating Department: Community Development By: Jeff Alger, Community Development Specialist; Jeff Sargent, Director of Community Development Agenda Title Resolution approving contract with JACON, LLC for hazardous material abatement, demolition of site improvements, utility work, tree removal and site grading of 5212 Pennsylvania Avenue North (Improvement Project No. 1025) Requested Action Staff requests approval of a resolution awarding a contract for hazardous material abatement, demolition of site improvements, utility work, tree removal and site grading for the property located at 5212 Pennsylvania Avenue North, to the low and responsible bidder, JACON, LLC in the amount of $23,890. Policy/Past Practice It is a past practice of staff to present contracts to the EDA for consideration when public bidding is required for scattered site housing projects. Background The EDA acquired the single-family home located at 5212 Pennsylvania Avenue North in September 2018, as part of the city's scattered site housing program. The EDA directed staff to take the necessary steps in preparing the home for demolition in order to facilitate redevelopment of the property. This contract award includes demolition of all site improvements, hazardous material abatement, tree removal, lining of the sanitary sewer service, and replacement of the water service valve. The city forester visited the site and assisted in removing a pine tree located in the right-of-way at the southwest corner of the lot. The two trees near Oregon Avenue North and the two large trees in the backyard will not be removed as part of the contract. The demolition survey included the removal of four other trees within the buildable area of the site. Request for quotes were sent to three contractors, who submitted the following bids: Jacon LLC $23,890 Leadens Excavating Inc. $27,445 Nitti Rolloff Services Inc. $32,750 The EDA has worked with JACON, LLC on two previous scattered site housing projects. The contractor was selected for demolition and site grading work at 7215 62nd Avenue North and 7303 62nd Avenue North. Staff had a good experience working with the contractor and has no concerns with awarding them the contract. Funding Funding is available in the EDA budget for the demolition contract. Recommendation Staff recommends approval of a resolution awarding a contract for hazardous material abatement, demolition of site improvements, utility work, tree removal and site grading for the property located at 5212 Pennsylvania Avenue North, to JACON, LLC in the amount of $23,890. 1:\RPA\COMM DEV\2019\EDA\Scattered Site Housing\Q- Award Demolition Contract for 5212 Pennsylvania Ave N 06-10-19.docr Request for Action, Page 2 Attachments • Resolution ■ Bids received • Request For Quote/Project Specifications EDA RESOLUTION NO. 19-02 RESOLUTION APPROVING CONTRACT WITH JACON LLC FOR HAZARDOUS MATERIAL ABATEMENT, DEMOLITION OF SITE IMPROVEMENTS, UTILITY WORK, TREE REMOVAL AND SITE GRADING OF 5212 PENNSYLVANIA AVENUE NORTH (IMPROVEMENT PROJECT NO. 1025) BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, the Economic Development Authority in and for the City of New Hope (`EDA") purchased that certain real property located at 5212 Pennsylvania Avenue North, New Hope, MN (the "Property") with the intentions of redeveloping the Property; and WHEREAS, City staff intends to redevelop the Property in accordance with the City's scattered site housing program and policy and return the Property to the tax rolls for the benefit of all taxing jurisdictions; and WHEREAS, City staff is exercising due diligence to correct the Property's blighted condition by performing an environmental cleanup of the Property to be followed by the demolition of all buildings on the Property, utility work, tree removal, and site grading of the Property; and WHEREAS, JACON LLC submitted a proposal for hazardous material abatement, demolition of site improvements, utility work, tree removal, and site grading ("Work") that meets all of the Project Specifications and is the low bid; and WHEREAS, it is in the best interests of the EDA to enter into a contract with JACON LLC for the purpose of performing the Work; and WHEREAS, City staff is hereby seeking approval from the EDA of the selection of JACON LLC as the duly qualified contractor to perform the Work. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. That selection of JACON LLC as the Contractor to perform the hazardous material abatement, demolition of all building and site improvements located at the Property, utility work, tree removal, and site grading of the Property pursuant to the Project Specifications is approved, it being in the best interest of the EDA and City to prepare the Property for redevelopment in accordance with the City's scattered site housing program and policy. 3. That the payment of $23,890.00 to JACON LLC to perform the Work is hereby approved. 4. The President, Executive Director, and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the hazardous material abatement, demolition, utility work, tree removal, and the re -grading of the Property in accordance with the contract to be prepared by the City Attorney. Dated the 1 Oth day of June, 2019. �, n l4 Attest: `�� Kirk McDonald, Executive Director Kathi Hem n, P esiden it — Property Owner: City of New Hope EDA Property Address: 5212 Pennsylvania Avenue North, PID a 08-118-21-21-0052 For a price of s . CfG the contractor named below proposes to fully complete the work in accordance with the attached specifications for abatement, demolition, site grading, tree removal, and utility work at 5212 Pennsylvania Avenue North. Contractor Name: --\� Q av& L L C License Number: Address• Telephone: Email Address: ado p, a•:_ Contractor Signature: Date: �'•/�—/�'' Title; Property Owner. City of New Hope EDA Property Address: 5212 Pem-tsylvauiie Avenue Nurth, PID = 08-118-21-21-0052 For a price of the contractor named below proposes to fully complete the work in accordance with the attached specifications for abatement, demolition, site grading, tree removal, and utility work at 5212 Pennsylvania Avenue North. tad r L(LI5. " Contractor Name: -S XCA. v 0%7 .: c License Number: R SS 6,41 S \ Address:�.'�� Telephone: u k Z - y oko -` Q°l 3 Email Address: � w � `h z E� -�Dc. con j Contractor Signature: Date: 14 Title: Property Owner: City of New Hope EDA Property Address: 5212 Pennsylvania Avenue North, PID = 08-118-21-21-0052 For a price of $ 3d 7 SO °0 the contractor named below proposes to fully complete the work in accordance with the attached specifications for abatement, demolition, site grading, tree removal, and utility work at 5212 Pennsylvania Avenue North. Contractor License ''i'4 • SPrV C e .S 7 A 1d35`I el'vu'l ,0/ Ss b14h s--Fq k 9 TelephoneEmail Address: r 7 7� i Cdr,, AA e4C46, Contractor Signature: Date; I Title: r • From: The Economic Development Authority in and for the city of New Hope Subject: Request for quotes for demolition, hazardous material abatement, tree removal, sewer lining, and water service valve replacement at 5212 Pennsylvania Avenue North. Overview: The city of New Hope EDA is the owner of the property addressed at 5212 Pennsylvania Avenue North (PID 08-118-21-21-0052). The EDA is requesting quotes for removal of hazardous material and demoli- tion of all building and site improvements at this location followed by re -grading of the primary exca- vation area, tree removal, and installation of utility improvements. If you are interested in submitting a quote for this project, please review the enclosed specifications and inspect the site. To gain entry into the home, use the lock box on the back door, code 4401. Please call Jeff Alger in the Community Devel- opment Department with any questions at 763-531-5119. Proposals must be completed on the enclosed bid form and submitted by 1:00 p.m. on May 28, 2019. Proposals may be submitted by U.S. Mail, e-mail, or in person. Please note that the enclosed bid form must be used. city staff will review the submitted proposals and forward them to the City Council. City staff expects the City Council to select a demolition contractor at the June 10, 2019, meeting. The time- line for completion of all work will be weather dependent. Submit proposals to the following: Attn: Jeff Alger City of New Hope Community Development Department 4401 Xylon Avenue North New Hope, MN 55428 jalger@newhopemn.gov Property Owner: City of New Hope EDA Property Address: 5212 Pennsylvania Avenue North, PID = 08-118-21-21-0052 For a price of $ , the contractor named below proposes to fully complete the work in accordance with the attached specifications for abatement, demolition, site grading, tree removal, and utility work at 5212 Pennsylvania Avenue North. Contractor License Number: Address: Telephone: Email Address: Contractor Signature: Date: A. Scope of Work 1. General a. Contractor shall furnish all labor, materials, and equipment, and shall perform all service and work required to remove the buildings, structures, and improvements from the site, and post demolition grading of the site, in strict accordance with these specifications and in accordance with all applicable ordinances and laws pertaining to removal of buildings, structures, grading, and erosion control. Following demolition the contractor must install silt fencing or erosion control logs around the entire „perimeter of the disturbed area. b. Contractor shall thoroughly review these specifications and examine the site to evaluate existing and proposed conditions prior to submitting a quote. Failure to do so shall in no way relieve contractor from performing the work as required or be grounds for a claim for extra payment. 2. Demolition and Disposal of Buildings and Site Improvements a. All buildings and site improvements on the site shall be removed and properly disposed. Demolition to include, but not limited to stairs, ramps, floor slabs, equipment bases, driveways, aprons, foundation walls and footings, and other structure components, appurtenances, and contents associated with each structure, unless otherwise noted. Include removal of all out -buildings and miscellaneous items included in the attached pictures. b. All demolition materials, substrates, debris, waste, or other materials shall be collected, stored, handled, managed, and disposed in accordance with currently accepted practices at an approved, licensed, or permitted facility in accordance with applicable federal, state, and local ordinances, rules, and regulations. 3. Backfill, Compaction, and Grading a. No demolition material shall be left in, or placed in any excavation. All excavations, unless otherwise noted, shall be back filled with clean imported sand. Imported material shall be placed in 1 foot lifts and compacted to no less than 95% standard proctor density. Contactor shall provide the city with third party sampling, analysis, and reports to demonstrate that 95% compaction has been achieved. b. The finished grade shall be determined by matching the existing average grade of the exca- vation areas prior to demolition. The final grade shall maintain pre demolition drainage patterns. No imported topsoil is required. c. Upon completion of the finished grade, contractor shall immediately hydro -seed all disturbed areas of the site. 4. Tree and Vegetation Removal a. City staff has marked all trees for removal with orange tape. The stumps shall be pulled from the ground and hauled away. Stump pits shall be back -filled. Lilac bushes along the im- mediate north property line shall remain. Contractor is to include removal of all marked trees and stumps in the demolition bid. 5. Abandonment of Wells a. The city does not know of any well on the property. In the event that a well is present, and as part of this bid, the demolition contractor is to hire a well sealing company to properly seal the well and record the sealing with the Minnesota Department of Health. Contractor must provide records of the well sealing to the city upon completion. 6. Utilities a. Contractor shall be responsible for calling Gopher State One Call for the location of any underground utilities prior to commencement of demolition and site grading work. b. The city has ordered the disconnection of electricity (Xcel Energy) and natural gas (CenterPoint Energy) services for the property. Contractor shall field verify disconnections prior to demolition. Other private communication utilities such as telephone and cable may still be connected; if so, contractor shall roll them back and secure them at the pole prior to demolition. c. Contractor is to coordinate the shut off of water with Public Works to ensure that the water is off before termination of the water service. Contractor is to remove the water line all the way to the curb stop. Contractor is to install new curb stop and box as part of the water, disconnection. Document and mark on -site, the location of the service termination. Inspection by the city will be required prior to backfilling of the trench. �V�1 d. Contractor is to coordinate the termination of the private sewer line with Public Works. The sewer line should be removed to within three 3 feet of the properiy line and the remaining service stub shall be lined with CIPP lining all the way to the main. Once lined, cap the end in preparation of connection to the new home. Document and mark on - site, the location of the service termination. Inspection by the city will be required prior to backfilling of the trench. 7. Asbestos and Other Hazardous Materials a. The city has contracted with Angstrom Analytical for the completion of a demolition survey for the property. The survey is attached to this report. Demolition contractor is to rovide for the removal and appropriate disposal of all asbestos and other hazardous items listed in the report. 8. Permits and Inspections a. Contractor will complete and submit the city of New Hope demolition permit application. Permit fees for the demolition permit will be waived, however the State surcharge will still be collected, as the city cannot waive that portion. Contractor shall have the work inspect- ed prior to backfilling the primary excavation. The private water and sewer service termi- nations will also be inspected by the city's Public Works staff. A separate water and sewer disconnection permit must be secured from the city. b. If any permits from other governmental agencies are required, contractor shall, at contractor's own expense, secure such permits, pay any fees, and complete any inspections required by same, and provide a copy of the permit to the city. c. Contractor shall submit "Notification of Intent to Perform a Demolition' form to the MPCA. 9. Miscellaneous Provisions, and Notices a. Contractor shall erect and maintain all necessary barricades and warnings to adequately safeguard workers, adjacent property, and the public. b. The demolition and clearing of the site shall be carried out in such a manner to preclude damage to adjacent property or public right-of-way. c. Contractor is to provide dust control during demolition by watering the home. Water is available at no cost from the city by accessing adjacent hydrants. Please notify New Hope Public Works one week in advance of demolition to coordinate hydrant connection. d. Submission of a proposal will constitute an incontrovertible representation by contractor that contractor has complied with every requirement of these specifications and attachments thereto; that without exception the proposal is premised upon performing and furnishing the work including but not limited to the specific means, methods, techniques, sequences, procedures or precautions expressly required by these specifications and attachments thereto; that contractor has received from city satisfactory written resolution of any conflicts, errors, ambiguities, and discrepancies; and that these specifications and attachments thereto are generally sufficient to indicate and convey understanding of the terms and conditions for performing and furnishing the work. w SPECIFICATIONS FOR DEMOLITION AND RELATED WORK tam �ikl Mp V 'o 14 Two 07 14- �4 % 1phA, Jr. Jp. 'A' .'-E. 1A t &4 2: 4k ip , -.04 A SPECIFICATIONS FOR DEMOLITION AND RELATED WORK L Fxt -_v of - _ .-. 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Xf f 7.,,� •� r'.✓� r �t _ • . 1'+ l . ��. } _. _ _ •e` �T,r"d .y�. �.�r �'1a-•�['' vi' �{ .. �_�> ' ..L' .. i fY SPECIFICATIONS FOR DEMOLITION AND RELATED WORK .. 4 ITALWO&Z, SPECIFICATIONS FOR DEMOLITION AND RELATED WORK 11 r_m 0 SPECIFICATIONS FOR DEMOLITION AND RELATED WORK Al i ,f .,�i il�f; ,. .• ��� of i' AN fa - L. t ��i .°'4, •' I ,,��� it". _ , �,��� <.`�•� ,fry IJ Ile - � �. r` � • -i [ • '1rTi t •yy�c `<. ;, z*f r�� ~y�-�jl•np_ww 1a r � • �i � Y ��� � L- YF�.���'� t � y�'y� r•Tr a � J•' tiF''�, r• _�ii-� -,I> = __ yam, , � �. j+. �7� ti • r. SPECIFICATIONS FOR DEMOLITION AND RELATED WORK In -. -- r �`� � .� y.•Y+$n-�,.�.���f•.1_Y7p�r C•s1.,;;b 016,� '•� ��r1,�• �y". y- :!4'•a� too r Ir' �' r yam',.`- i� � '� + � r� `� �•.1�•-'�;r��`�> ► �'�f ��'��i ��* -x IF rr" if ol �-7 AS :jam y ._ ! f.=" - � ry �r..� t�A. �• 4y.�� � y �i• �. 1'• •� .- F � „�'•�• !�"`•'r: ��'�: -+i � �.. .r''. '•`•'tea, ai SPECIFICATIONS FOR DEMOLITION AND RELATED WORK Ari 5501 Cedar Lake Rd. St. Louis Park, MN 55416 �s�4m 952-252-0405 office na.ly►'tical 952-252-0407 fax Inc. Analysis of Bulk Samples for Asbestos Using Polarized Light Microscopy (PLM) City of New Hope 4401 Xylon Ave N New Hope, MN 55428 Re: 5212 Pennsylvania Ave New Hope, MN Number of Samples: 45 Methods and Definitions The submitted samples were analyzed using the EPA Interim Method >1600/M4-82-020 (polarized light microscopy with dispersion staining). The method defines an asbestos containing material as one that contains greater than 1% asbestos by weight and asbestos Is defined as the fibrous forms of sepentlne and certain amphlboles. While the fibrous and non fibrous forms of minerals are discernible microscopically In hand specimens, the distinction between them Is not clear on a microscopic level, especially after processing or manufacturing. Fibrous amphlboles are generally those whose mean aspect ratios (length over width)under the microscope or approximately >10, non -fibrous amphlboles are generally those whose mean aspect ratios are approximately <6. During analysis, morphology and an estimate of mean aspect ratio are used to assign a given mineral fiber population to fibrous and non fibrous categories. That nonfbrous amphlboles are not reported as asbestos Is consistent with mineralogical definitions, but does not Imply that non -fibrous amphlboles are not hazardous. Airborne concentrations of them may be regulated by OSHA under certain circumstances. The type of dispersion staining used is genarally phase contrast, although central stop dispersion staining may also be used. Percentage Reporting The percentage of each fiber type present was determined using volume percents estimated from stereoscopic examination, projected area percents from mounted slide examination and percents from comparison to weight percent standards. Such estimations are suitable for most samples, but do have large error ranges. Errors are estimated to be 100 relative percent uncertainty for percentage estimates under 10% ranging down to as little as 10 relative percent uncertainty for percentage estimates greater than 50%. Friable samples which have been estimated by the above methods to contain less than 10% asbestos can be point counted, according to the EPA Interim Methods, as required by NESHAPS. In low percentage samples, point counting may produce false negatives or positives, due to the small number of points counted. For samples conslsting'of more than one apparent type of material or layer, the percentage of each fiber type of material or layer is determined and reported separately; an overall average for the sample of each fiber type -Is then calculated. The reported frlablllty of a sample refers to that friability, ovserved In the condition analyzed (broken, crushed, etc.), and Is not to be substituted for an on -site assessment of friability. Each Angstrom Analytical lab report relates only to the sample tested and may not, due to the sampling process be representative of the mnhnrinl a October 19th, 2018 Jason Knapp, Angstrom Analytical, Inc. Full Service Laboratory and on -site Industrial Hygiene Services for the Hazardous Materials Abatement Industry Ilig tro['�"u li-'r lytical Inc. City of New Hope 4401 Xylon Ave N New Hope, MN 55428 October 19th, 2018 5212 Pennsylvania Ave New Hoe MN Dear Aaron: 5501 Cedar Lake Rd, St. Louis Park, MN 55416 952-252-0405 office 952-252-0407 fax Jason Knapp (Al 12666), a representatives of Angstrom Analytical, Inc., visited the above referenced property on October 12th, 2018 for the purpose of conducting an asbestos demolition inspection. We are prepared to state that there are asbestos containing building materials contained in or on the fabric of the structure. The following materials tested positive for the presence of asbestos: 1. Approximately 300-320 SF of 9"x9" vinyl floor tile and associated black mastic located in the basement. 2. Approximately 650-800 SF of 9"x9" vinyl floor tile and associated black mastic located in the main level living room and adjacent rooms except for the kitchen. No samples other than from the fabric of the building that is planned for demolition were taken or analyzed and this report relates only to 5212 Pennsylvania Ave N., New Hope, MN. Forty-five (45) samples of suspect building materials were collected and analyzed in our laboratory by Polarized Light Microscopy. Please see attached notes. During the course of the survey other hazardous materials were noted: Misc. 1 Clothes Washer 1 Stove/Oven 1 Dishwasher 1 Clothes Dryer 1 Refrigerator 1 Furnace 9 Smoke Detectors 1 Microwave Oven 1 Water Heater All friable and category II non -friable materials need to be removed, per applicable regulations, prior to and demolition efforts. Category I non -friable materials are allowed to be left in place for the demolition. However, the landfill must be made aware that the demolition debris will contain (minimal amounts of) category I non -friable asbestos containing material and is subject to the MPCA's rules and regulations pertinent to the demolition efforts (notifications, etc.). This survey should not be Interpreted as a bidding document or as an asbestos project design. It is incumbent upon the contractor to verify quantities. Quantification of materials identified In this inspection report are approximations and based on observed quantities. Additional amounts of material may be present under floor, above ceilings and inside wall cavities and not fully quantified. For example, thermal system Insulation indentified in a basement may also exist inside wall cavities. If you have any questions, please call us at the number above. Sincerely, Jason Knapp Angstrom Analytical, Inc. Material Identification Table ngstro rn 5001 Cedar Lake Road Project #: On -site nztlyU��l St. Louis Park, MN 55416 Date: October 19th, 2018 nc- 952-252-0405 Client: City of New Hope Project: Residential Survey N=no damage ND none detected PD = potential damage Address: 4401 Xylon Ave N Address: 5212 Pennsylvania AVD=moderate damage NS=Not Sampled PSD = potential for New Hope, MN 55428 New Hope, MN SD= significant damage NAC=not accessible significant damage Phone: 763-531-5114 Contact: Aaron Chirpich SF=square feet FA=each NS-Not Suspect Email: achirpich@newhopemn.l?ov Phone: 763-531-5114 LF=linear feet NT-Not Tested Sample #1: Location Material Description Asbestos / % Quantity / Unit Condition Damage Potential Rating 1-3 throughout sheetrock/tape/compound gypsum ND 2,000-2,500 SF N PD 0 4-6 throughout ceilingtexture granular ND 1,200-1,500SF N PD 0 7-9 kitchen self-adhesive floor tile gray ND 200-250 SF N PD 0 10-12 bathroom tile/mortar/grout - wall cementitious ND 30-50 SF N PD 0 13-15 bathroom tile/mortar/grout-floor cementitious ND 30-40SF N PD 0 16-18 basement self-adhesive floor tile brown ND 80-100SF N PD 0 19-21 basement 9"x9" floortile red CHR 3-4% 300-320 SF N PD 1 22-24 basement 9"x9" floor the - mastic black UiR 2-3% 300-320 SF N PD 1 25-27 basement - bath vinyl sheet flooring tan ND 30-40 SF N PD 0 28-30 basement tile/mortar/grout white ND 230-250 SF N PD 0 31-33 basement 1'x1' ceiling tile white ND 230-250 SF N PD 0 34-36 exterior window & door caulking white ND 15-20 FA N PD 0 37-39 roof asphalt shingles/tar paper brown/black ND 2,000-2,500 SF N PD 0 40- 42 living room/ bed 9"x9" floor file red/green CHR 3-4% 650-800 SF N PD 1 43-45 living room/ bed 9"W' floor tile - mastic black CHR 2-3% 650-800 SF N PD 1 CHR-Chrysudle TREM-Tremolite ACT-Actinolite B-basement BR -bedroom H-hall DR -dining rm FR-family rm C corridor CL-closet AM-Amos'rte CROC-Crocidolite ANTH-Anthophyllite K-kitchen BA -bath M-mech. LR-living rm Ggarage Ll-utility ST-stairway EDA IN AND FOR THE CITY OF NEW HOPE CONTRACT FOR HAZARDOUS MATERIAL ABATEMENT, DEMOLITION OF SITE IMPROVEMENTS, UTILITY WORK, TREE REMOVAL, AND SITE GRADING AT 5212 PENNSYLVANIA AVENUE NORTH For valuable consideration as set forth below, this Contract dated the 17th day of June, 2019, is made and entered into between the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota ("EDA") and JACON LLC, a Minnesota corporation ("Contractor"). CONTRACT DOCUMENTS Contractor hereby promises and agrees to perform and comply with all"the provisions of this Contract pursuant to the specifications for demolition, utility work, tree removal, and site grading attached hereto as Exhibit A for the hazardous material abatement, demolition of all building and site improvements, utility work, tree removal, and re -grading of the residential property located at 5212 Pennsylvania Avenue North, New Hope, Minnesota ("Property"). The Contract including specifications on Exhibit A shall comprise the total agreement of the parties hereto. No oral order, objection, or claim by any party to the other shall affect or modify any of the terms or obligations contained in this Contract. 2. THE WORK The work to be performed by Contractor under this Contract (hereinafter the "Work"), is defined in the specifications as hazardous material abatement, demolition of all building and site improvements located on the Property, utility work, tree removal, and re -grading of the Property. As part of the Work, Contractor agrees to remove all excess material from the Property. 3. CONTRACT PRICE The EDA agrees to pay Contractor the sum of $23,890.00 in exchange for Contractor furnishing labor and materials for the Work at the Property, payable within 30 days of Contractor's completion of the Work. Contractor may start work on this project upon its execution of this Contract and providing proof of insurance pursuant to paragraph 5. 4. COMPLETION DATE/LIQUIDATED DAMAGES Contractor shall complete all Work on or before July 30, 2019 ("Completion Date"). Due to the difficulty in ascertaining and establishing the actual damages which the EDA or City would sustain, liquidated damages are specified as follows for failure of Contractor to complete his performance under this Contract by the Completion Date: for every calendar day that the Contract —1-- shall remain uncompleted beyond the Completion Date of July 30, 2019, Contractor shall pay the EDA $100.00 per day as liquidated damages. 5. INSURANCE Before beginning actual work under this Contract, Contractor shall submit to the EDA and obtain the EDA's approval of a certificate of insurance on Standard Form C.I.C.C.-701 or ACORD 25 forms, showing the following insurance coverage, and listing the Contractor as a loss payee under the policies: a. General Contractor Liability: $1,000,000.00 b. Workman's Compensation: Statutory Amounts The EDA and the City shall be named as an Additional Insureds in regard to the General Contractor Liability forms where required by written contract on a primary and non-contributory basis, including completed operations. This certificate must provide for the above coverages to be in effect from the date of the Contract until 30 days after the Completion Date, and must provide the insurance coverage will not be canceled by the insurance company without 30 days written notice to the EDA of intent to cancel. The certificate must further provide that Contractor's insurance coverage is primary coverage notwithstanding any insurance coverage carried by the EDA that may apply to injury or damage relating to the maintenance or repair of the City streets or rights -of -way by either the City, EDA or any employee, agent, independent contractor or any other person or entity retained by the City or EDA to perform the services described herein. All insurance is subject to the review and approval of the New Hope City Attorney. 6. LAWS REGULATIONS AND SAFETY Contractor shall give all notices and comply with all laws, ordinances, rules, and regulations applicable to performance under this Contract. Contractor shall provide adequate signs and/or barricades, and will take all necessary precautions for the protection of the work and the safety of the public. 7. INDEMNIFICATION To the fullest extent permitted by law, Contractor shall indemnify and hold harmless the City, EDA, their agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorney's fees, arising out of or resulting from the performance of Work, provided that any such claim, damage, loss or expense (1) is attributable to bodily injury, sickness, disease or death, or to injury or to destruction of tangible property (other than the Work itself) including the loss of use resulting therefrom, and (2) is caused in whole or in part by any negligent act or omission of Contractor, any Subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. —2— 8. ASSIGNMENT Contractor shall not assign or transfer, whether by an assignment or novation or otherwise, any of its rights, duties, benefits, obligations, liabilities or responsibilities without prior written consent of the EDA. 9. NOTICE The address and telephone number of Contractor for purposes of giving notices and any other purpose under this Contract shall be 3580 Centerville Road, Vadnais Heights, MN 55127. The address of the EDA for purposes of giving notices and any other purposes under this Contract shall be 4401 Xylon Avenue North, NeW Hope, MN 55428. IN WITNESS WHEREOF, the parties to this Contract have hereunto set their hands and seals as of the day and year first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THCITY OF NEW O,PE Kirk McDonald Its: Executive Director JACON LLC By: Its: e, —3— Exhibit A Specifications See attached. P:\Attomey\SAS\1 Client Files\2 City of New Hope\99-11429 5212 Pennsylvania Ave N\Demolition Contract - 5212 Pennsylvania Ave N.docx From: The Economic Development Authority in and for the city of New Hope Subject: Request for quotes for demolition, hazardous material abatement, tree removal, sewer lining, and water service valve replacement at 5212 Pennsylvania Avenue North. Overview: The city of New Hope EDA is the owner of the property addressed at 5212 Pennsylvania Avenue North (PID 08-118-21-21-0052). The EDA is requesting quotes for removal of hazardous material and demoli- tion of all building and site improvements at this location followed by re -grading of the primary exca- vation area, tree removal, and installation of utility improvements. If you are interested in submitting a quote for this project, please review the enclosed specifications and inspect the site. To gain entry into the home, use the lock box on the back door, code 4401. Please call Jeff Alger in the Community Devel- opment Department with any questions at 763-531-5119. Proposals must be completed on the enclosed bid form and submitted by 1:00 p.m. on May 28, 2019. Proposals may be submitted by U.S. Mail, e-mail, or in person. Please note that the enclosed bid form must be used. city staff will review the submitted proposals and forward them to the City Council. City staff expects the City Council to select a demolition contractor at the June 10, 2019, meeting. The time- line for completion of all work will be weather dependent. Submit proposals to the following: Attn: Jeff Alger City of New Hope Community Development Department 4401 Xylon Avenue North New Hope, MN 55428 j alger@newhopemn. gov Property Owner: City of New Hope EDA Property Address: 5212 Pennsylvania Avenue North, PID = 08-118-21-21-0052 For a price of $ , the contractor named below proposes to fully complete the work in accordance with the attached specifications for abatement, demolition, site grading, tree removal, and utility work at 5212 Pennsylvania Avenue North. Contractor Name: License Number: Telephone: Email Address: Contractor Signature: Date: A. Scope of Work 1. General a. Contractor shall furnish all labor, materials, and equipment, and shall perform all service and work required to remove the buildings, structures, and improvements from the site, and post demolition grading of the site, in strict accordance with these specifications and in accordance with all applicable ordinances and laws pertaining to removal of buildings, structures, grading, and erosion control. Following dem lition the contractor must install silt fencing or erosion control logs around the entire perimeter of the disturbed area. b. Contractor shall thoroughly review these specifications and examine the site to evaluate existing and proposed conditions prior to submitting a quote. Failure to do so shall in no way relieve contractor from performing the work as required or be grounds for a claim for extra payment. 2. Demolition and Disposal of Buildings and Site Improvements a. All buildings and site improvements on the site shall be removed and properly disposed. Demolition to include, but not limited to stairs, ramps, floor slabs, equipment bases, driveways, aprons, foundation walls and footings, and other structure components, appurtenances, and contents associated with each structure, unless otherwise noted. Include removal of all out -buildings and miscellaneous items included in the attached pictures. b. All demolition materials, substrates, debris, waste, or other materials shall be collected, stored, handled, managed, and disposed in accordance with currently accepted practices at an approved, licensed, or permitted facility in accordance with applicable federal, state, and local ordinances, rules, and regulations. 3. Backfill, Compaction, and Grading a. No demolition material shall be left in, or placed in any excavation. All excavations, unless otherwise noted, shall be back filled with clean imported sand. Imported material shall be placed in 1 foot lifts and compacted to no less than 95% standard proctor density. Contactor shall provide the city with third party sampling, analysis, and reports to demonstrate that 95% compaction has been achieved. b. The finished grade shall be determined by matching the existing average grade of the exca- vation areas prior to demolition. The final grade shall maintain pre demolition drainage patterns. No imported topsoil is required. c. Upon completion of the finished grade, contractor shall immediately hydro -seed all disturbed areas of the site. 4. Tree and Vegetation Removal a. City staff has marked all trees for removal with orange tape. The stumps shall be pulled from the ground and hauled away. Stump pits shall be back -filled. Lilac bushes along the im- mediate north property line shall remain. Contractor is to include removal of all marked trees and stumps in the demolition bid. 5. Abandonment of Wells a. The_city does not know of any well on the.propeft In the event that a well is present, and as part of this bid, the demolition contractor is to hire a well sealing company to properly seal the well and record the sealing with the Minnesota Department of Health. Contractor must provide records of the well sealing to the city upon completion. 6. Utilities a. Contractor shall be responsible for calling Gopher State One Call for the location of any underground utilities prior to commencement of demolition and site grading work. b. The city has ordered the disconnection of electricity (Xcel Energy) and natural gas (CenterPoint Energy) services for the property. Contractor shall field verify disconnections prior to demolition. Other private communication utilities such as telephone and cable may still be connected; if so, contractor shall roll them back and secure them at the pole prior to demolition. c. Contractor is to coordinate the shut off of water with Public Works to ensure that the water is off before termination of the water service. Contractor is to remove the water line all the way to the curb stop. Contractor is to install new curb stop and box as art of the water disconnection. Document and mark on -site, the location of the service termination. Inspection by the city will be required prior to backfilling of the trench. d. Contractor is to coordinate the termination of the private sewer line with Public Works. The sewer line should be removed to within three (3) feet of the proyedyline_and the remaining service stub shall be lined with CIPP linin all the way to the main. Once lined, cap the end in preparation of connection to the new home. Document and mark on - site, the location of the service termination. Inspection by the city will be required prior to backfilling of the trench. 7. Asbestos and Other Hazardous Materials a. The city has contracted with Angstrom Analytical for the completion of a demolition survey for the property. The survey is attached to this report. Demolition contractor is to provide for the removal and appropriate disposal of all asbestos and other hazardous items listed in the report. 8. Permits and Inspections a. Contractor will complete and submit the city of New Hope demolition permit application. Permit fees for the demolition permit will be waived, however the State surcharge will still be collected, as the city cannot waive that portion. Contractor shall have the work inspect- ed prior to backfilling the primary excavation. The private water and sewer service termi- nations will also be inspected by the city's Public Works staff. A separate water and sewer disconnection permit must be secured from the city. b. If any permits from other governmental agencies are required, contractor shall, at contractor's own expense, secure such permits, pay any fees, and complete any inspections required by same, and provide a copy of the permit to the city. c. Contractor shall submit "Notification of Intent to Perform a Demolition' form to the MPCA. 9. Miscellaneous Provisions, and Notices a. Contractor shall erect and maintain all necessary barricades and warnings to adequately safeguard workers, adjacent property, and the public. b. The demolition and clearing of the site shall be carried out in such a manner to preclude damage to adjacent property or public right-of-way. c. Contractor is to provide dux# control during demolition_by watering the home. Water is available at no cost from the city by accessing adjacent hydrants. Please notify New Hope Public Works one week in advance of demolition to coordinate hydrant connection. d. Submission of a proposal will constitute an incontrovertible representation by contractor that contractor has complied with every requirement of these specifications and attachments thereto; that without exception the proposal is premised upon performing and furnishing the work including but not limited to the specific means, methods, techniques, sequences, procedures or precautions expressly required by these specifications and attachments thereto; that contractor has received from city satisfactory written resolution of any conflicts, errors, ambiguities, and discrepancies; and that these specifications and attachments thereto are generally sufficient to indicate and convey understanding of the terms and conditions for performing and furnishing the work. SPECIFICATIONS FOR DEMOLITION AND RELATED WORK 4N AF 74:' JI Aar% rl l'j/. le A 1.2 -7 SPECIFICATIONS FOR DEMOLITION AND RELATED WORK �' ��$$�• • '� shy � � i�'r r'v5%• .: • � a r ��rr.•' ti •�i^ y A - SPECIFICATIONS FOR DEMOLITION AND RELATED WORK �j�,,�` �' i ova � `� . •' � �'• �� 5 ~" 4 �i�'� �11.: `+Y � . j; �; , 0 SPECIFICATIONS FOR DEMOLITION AND RELATED WORK ~ i f,;�+� - SPECIFICATIONS FOR DEMOLITION AND RELATED WORK r2 17 7=111 oq ® R -0 Nw. A 4A MW SPECIFICATIONS FOR DEMOLITION AND RELATED WORK `;,cep r d' - _ �..-,��• SPECIFICATIONS FOR DEMOLITION AND RELATED WORK 1 e tF-_,;rr5 iYl .? 7t r 5501 Cedar Lake Rd. St. Louis Park, MN 55416 '� 952-252-0405 office 1" a lytica l 952-252-0407 fax A ne. Analysis of Bulk Samples for Asbestos Using Polarized Light Microscopy (PLM) City of New Hope 4401 Xylon Ave N New Hope, MN 55428 Re: 5212 Pennsylvania Ave New Hope, MN Number of Samples: 45 Methods and Definitions The submitted samples were analyzed using the EPA Interim Method #600/M4-82-020 (polarized light microscopy with dispersion staining), The method defines an asbestos containing material as one that contains greater than 1% asbestos by weight and asbestos Is defined as the fibrous forms of sepentine and certain amphlboles. While the fibrous and non fibrous forms of minerals are discernible microscopically In hand specimens, the distinction between them Is not clear on a microscopic level, especially after processing or manufacturing. Fibrous amphlboles are generally those whose mean aspect ratios (length over width)under the microscope or approximately >10, non fibrous amphlboles are generally those whose mean aspect ratios are approximately <6. During analysis, morphology and an estimate of mean aspect ratio are used to assign a given mineral fiber population to fibrous and non fibrous categories. That non fibrous amphlboles are not reported as asbestos Is consistent with mineralogical definitions, but does not Imply that non fibrous amphlboles are not hazardous. Airborne concentrations of them may be regulated by OSHA under certain circumstances. The type of dispersion staining used Is genarally phase contrast although central stop dispersion staining may also be used. Percentage Reporting The percentage of each fiber type present was determined using volume percents estimated from stereoscopic examination, projected area percents from mounted slide examination and percents from comparison to weight percent standards. Such estimations are suitable for most samples, but do have large error ranges. Errors are estimated to be 100 relative percent uncertainty for percentage estimates under 10% ranging down to as little as 10 relative percent uncertainty for percentage estimates greater than 50%. Friable samples which have been estimated by the above methods to contain less than 10% asbestos can be point counted, according to the EPA Interim Methods, as required by NESHAPS. In low percentage samples, point counting may produce false negatives or positives, due to the small number of points counted. For samples consisting -of more than one apparent type of material or layer, the percentage of each fiber type of material or layer is determined and reported separately; an overall average for the sample of each fiber type -Is then calculated. The reported friability of a sample refers to that friability, ovserved In the condition analyzed (broken, crushed, etc.), and Is not to be substituted for an on -site assessment of friability. Each Angstrom Analytical lab report relates only to the sample tested and may not, due to the sampling process be representative of the material si October 19th, 2018 Jason Knapp, Angstrom Analytical, Inc. Full Service Laboratory and on -site Industrial Hygiene Services for the Hazardous Materials Abatement Industry ftr gtrµom nalytical Inc - City of New Hope 4401 Xylon Ave N New Hope, MN 55428 October 19th, 2018 5212 Pennsylvania Ave New Hope, MN Dear Aaron: 5501 Cedar Lake Rd. St. Louis Park, MN 55416 952-252-0405 office 952-252-0407 fax Jason Knapp (Al 12666), a representatives of Angstrom Analytical, Inc., visited the above referenced property on October 12th, 2018 for the purpose of conducting an asbestos demolition inspection. We are prepared to state that there are asbestos containing building materials contained in or on the fabric of the structure. The following materials tested positive for the presence of asbestos: 1. Approximately 300-320 SF of 9"x9" vinyl floor the and associated black mastic located in the basement. 2. Approximately 650-800 SF of 9"x9" vinyl floor tile and associated black mastic located In the main level living room and adjacent rooms except for the kitchen. No samples other than from the fabric of the building that is planned for demolition were taken or analyzed and this report relates only to 5212 Pennsylvania Ave N., New Hope, MN. Forty-five (45) samples of suspect building materials were collected and analyzed in our laboratory by Polarized Light Microscopy. Please see attached notes. During the course of the survey other hazardous materials were noted: Misc. 1 Clothes Washer 1 Stove/Oven 1 Dishwasher 1 Clothes Dryer 1 Refrigerator 1 Furnace 9 Smoke Detectors 1 Microwave Oven 1 Water Heater All friable and category II non -friable materials need to be removed, per applicable regulations, prior to and demolition efforts. Category I non -friable materials are allowed to be left in place for the demolition. However, the landfill must be made aware that the demolition debris will contain (minimal amounts of) category I non -friable asbestos containing material and is subject to the MPCA's rules and regulations pertinent to the demolition efforts (notifications, etc.). This survey should not be interpreted as a bidding document or as an asbestos project design. It is incumbent upon the contractor to verify quantities. Quantification of materials identified in this inspection report are approximations and based on observed quantities. Additional amounts of material may be present under floor, above ceilings and inside wall cavities and not fully quantified. For example, thermal system insulation indentified in a basement may also exist inside wall cavities. If you have any questions, please call us at the number above. Sincerely, Jason Knapp Angstrom Analytical, Inc. Material Identification Table 11 lg< stl c>m 5001 Cedar Lake Road Project #: On -site n i l id.al St. Louis Park, MN 55416 Date: October 19th, 2018 Inc- 952-252-0405 Client: City of New Hope Project: Residential Survey N=no damage ND=none detected PD = potential damage Address: 4401 Xylon Ave N Address: 5212 Pennsylvania AVD=moderate damage NS=Not Sampled PSD = potential for New Hope, MN 55428 New Hope, MN SD = significant damage MAC =not accessible significant damage Phone: 763-531-5114 Contact: Aaron Chirpich SF square feet EA=each Ns-Notsuspect Email: achirpich@newhopemn.gov Phone: 763-531-5114 LF=linear feet NT-Not Tested Sample # Location Material Description Asbestos / % Quantity / Unit Condition Damage Potential Rating 1-3 throughout sheetrock/tape/compound gypsum ND 2,000-2,500 SF N PD 0 4-6 throughout ceiling texture granular ND 1,200-1,500SF N PD 0 7-9 kitchen self-adhesive floor tile gray ND 200-250 SF N PD 0 10-12 bathroom tile/mortar/grout - wall cementitious ND 30-50SF N PD 0 13-15 bathroom tile/mortar/grout - floor cementitious ND 30-40SF N PD 0 16-18 basement self-adhesive floor tile brown ND 80-1005F N PD 0 19-21 basement 9"x9" floor tile red CHR 3-4% 300-320 SF N PD 1 22-24 basement 9"x9" floor the - mastic black CHR 2-3% 300-320 SF N PD 1 25-27 basement- bath vinyl sheet flooring tan ND 30-40 SF N PD 0 28-30 basement tile/mortar/grout white ND 230-250 SF N PD 0 31-33 basement 1'xl' ceiling tile white ND 230-250 SF N PD 0 34-36 exterior window & door caulking white ND 15-20 EA N PD 0 37-39 roof asphalt shingles/tar paper brown/black ND 2,000-2,500 SF N PD 0 40-42 Irving room/ bed 9"x9" floor tile red/green CHR 34% 650-800 SF N PD 1 43-45 Going room/ bed 9"x9" floor the - mastic black CHR 2-3% 650-800 SF N PD 1 CHR-Chrysotile TREM-TremolRe ACT-Actinolite B-basement BR -bedroom H-hall DR -dining rm FR-family rm C-corridor CL-closet AM-Amosite CROC-Crocidolite ANTH-Anthophyllite K-kitchen BA -bath M-mech. LR-living rm G-garage U-utility ST-stairway '�c �� CERTIFICATE OF LIA THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY ANC CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTE BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A C REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER, IMPORTANT: If the certificate holdor is an ADDITIONAL INSURED, the poll) If SUBROGATION IS WAIVED, subject to the terms and conditions of the pi this certificate does not confer rights to the certificate holder in liou of suc PRODUCER Preferred Insurance Services, Inc. 1306 West County Road F Arden Hills MN 55112 INSURED JACON LLC 3580 CENTERVILLE RD VADNAIS HEIGHTS MN 55127 BILITY INSURANCE DATE(MMIDDIYYYY) 06/11/2019 CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. 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LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. WR_SUERpow CY F LTR TYPEOFINSURANCE INSDIiVVD POLICY NUMBER MMwr MOUC k LIMITS COMMERCIAL GENERAL LIABILITY EACHOCCURRENCE $ 1.000.00 CLAIMS -MADE OCCUR DAMAGE TO RENTED PREMME.S S 100,000 A (AhNLA giREGATE LIMIT APPLIES PER: POLICY ❑X PRO- ❑ LOC OTHER: AUTOMOBILE LIABILITY ANY AUTO A OWNED SCHEDULED AUTOS ONLY AUTOS HIRED NON -OWNED AUTOS ONLY AUTOS ONLY X UMBRELLA ITAB OCCUR EXCESS LIAS CL4iM3#, LIED I I RETENTION S None AND EMPLOYERS' LIABILITY A ANY I'MOPMETORIPARTNEMEXECUT OPFICERIMEMBER EXCLUDED? (Mmt!Mory in NRl I! yes, describe under DESCRIPTION OF OPERATIONS Wow Inland Marine Y CPP2698509 01/15/2019 01/15/2020 umrrermcc MED EXP (An ona rs" $ 10,000 PERSONAt.6AOVINJURY S 1,000,ODO GENERALAGGREGATE $ 2,000,000 PRODUCTS •COMMOPAGG S 2,000,000 $ CA 2009853 CUP2685451 01/15/2019 01/15/2019 01/15/2020 01/15/2020 BINED tLEIMI tlL' $.000,000 BODILYINJURY (Per person) $ BODILY INJURY (Per accident) $ PROPERTY DAMAGE 1"01 aucbdent $ Bus Optimum Endo EACKOCCURRENCE $ 5 3,000,000 AGGREGATE S 3.000,000 s �Y-/�N Oihf UEACH11111 >:R 1 IVL WCP2011187 01/15/2019 01/15/2020 E•L.CCIDENT $ 500,000 NIA E-L DISEASE- EA EMPLOYEE a 500,000 E L. MSPASP _ Pni Iry r MIT It 600.000 A I I I CPP2698509 101/15/2019 101/1512020 I Rented/Leased Equip I 341,400 j !Cargo Coverage 500,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORO 101, Additional Remarks Schedule, may be attached it more space is required) Certificate holder is additional insured on general liability where required by written contract 30 days notice of cancellation applies (10 days for non-payment). nmucrc CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN City of New Hope EDA ACCORDANCE WITH THE POLICY PROVISIONS. 4401 Xylon Ave North AUTHORIZED REPRESENTATIVE New Hope MN 55428 1 /L c—, .i 01988-2015 ACORD CORPORATION. All rights reserved. ACORD 26 (2016/03) The ACORD name and logo are registered marks of ACORD