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050922 EDA Meeting Packet EDA MEETING City Hall, 4401 Xylon Avenue North Monday, May 9, 2022 President Kathi Hemken Commissioner John Elder Commissioner Andy Hoffe Commissioner Michael Isenberg Commissioner Jonathan London 1. Call to order – EDA Meeting of May 9, 2022 2. Roll call 3. Approval of Minutes: • February 28, 2022 4. Resolution approving purchase and redevelopment agreement with Fieldstone Family Homes, Inc. for the sale of 5306 Rhode Island Avenue North (improvement project no. 1080) 5. Resolution approving curbside appeal reimbursement program 6. Adjournment EDA Meeting   Page 1 February 28, 2022  City of New Hope  4401 Xylon Avenue North  New Hope, Minnesota 55428    EDA Minutes February 28, 2022  Regular Meeting City Hall      CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to  order at 7:46 p.m.    ROLL CALL Present:          Absent:    Kathi Hemken, President  Andy Hoffe, Commissioner  Michael Isenberg, Commissioner  Jonathan London, Commissioner    John Elder, Commissioner     Staff Present:      Kirk McDonald, City Manager  Jeff Alger, Community Development Specialist  Dan Boyum, City Engineer  Valerie Leone, City Clerk  Jeff Sargent, Director of Community Development  Bernie Weber, Director of Public Works  Stacy Woods, Assistant City Attorney    APPROVAL OF  MINUTES  Item 3    Motion was made by Commissioner London, seconded by Commissioner  Isenberg, to approve the minutes of December 13, 2021. All present voted in  favor. Motion carried.    4201 BOONE AVE N  (IMPROVEMENT  PROJECT NO. 1081)  Item 4  President Hemken introduced for discussion EDA Item 4, Resolution approving  Purchase Agreement for the acquisition of 4201 Boone Avenue North  (Improvement Project No. 1081).    Mr. Jeff Alger, community development specialist, stated staff is requesting  approval of a purchase agreement for the acquisition of 4201 Boone Avenue North  for $245,000. The home was built in 1945, and the appraised value of the property  is $250,000. The property is owned by TreeHouse, a nonprofit organization, that  recently merged its New Hope and Plymouth locations. He noted the property  would change from tax‐exempt to a tax paying property. The lot is large enough  to split into two lots to accommodate the construction of two homes (each lot could  sell for at least $75,000). There would be costs associated with demolition, tree  removal, grading, and utilities. Access to both lots would be from Boone Avenue.  The city would work with the county to ensure there is adequate room for  infrastructure (pedestrian ramps, sidewalks, signal system components) at the  southeast corner of the lot. Hennepin County will be requesting two easements  near 42nd Avenue. He illustrated the site and reviewed the project budget  (estimated expenses of $343,975 less estimated revenue of $150,000 results in  $193,975 cost), tax impact, and return on investment. If two new houses valued at  $425,000 each were constructed at the site, the portion of city taxes would be  EDA Meeting   Page 2 February 28, 2022  $5,100, which is $5,100 higher than the current taxes. EDA funds would be used  for the purchase.     Commissioner London commented that he believes the lot price of $75,000 is  undervalued.    Mr. Alger stated the city would set the minimum bid for the lot at $75,000, and a  builder may submit a higher price to make their bid more competitive.    RESOLUTION 2022‐01  Item 4  Commissioner London introduced the following resolution and moved its  adoption “RESOLUTION APPROVING PURCHASE AGREEMENT FOR THE  ACQUISITION OF 4201 BOONE AVENUE NORTH (IMPROVEMENT  PROJECT NO. 1081).” The motion for the adoption of the foregoing resolution  was seconded by Commissioner Hoffe, and upon vote being taken thereon, the  following voted in favor thereof: Hemken, Elder, Hoffe, Isenberg, London; and the  following voted against the same: None; Abstained: None; Absent: None;  whereupon the resolution was declared duly passed and adopted, signed by the  president which was attested to by the executive director.    5802 BOONE AVE N  (IMPROVEMENT  PROJECT NO. 1088)  Item 5  President Hemken introduced for discussion EDA Item 5, Resolution authorizing  the acquisition of 5802 Boone Avenue North by the Economic Development  Authority through bidding at Sheriff’s Mortgage Foreclosure Sale (improvement  project no. 1088).    Mr. Jeff Alger, community development specialist, stated this item authorizes staff  to bid up to $160,445.65 on the property at 5802 Boone Avenue North at an  upcoming Hennepin County Sheriff’s Mortgage Foreclosure Sale. He stated if  EDA is supportive of submitting a bid, staff recommends the EDA authorize  bidding up to $160,445.65 which is $1 higher than the outstanding amount owed  on the mortgage. The house is in a state of disrepair, and in March of 2021 it was  posted as uninhabitable by the city. The house was boarded up in January of 2022.  The 2021 assessed value was $213,000 according to county property tax records. If  the EDA acquires the property the home would be demolished to allow a new  home to be constructed at the site. It is a corner lot and the curb cut would be  changed from Boone Avenue to Boone Place. He reviewed the potential budget,  tax impact and return on investment. It is estimated that the expenses associated  with the project would be $129,008 ($209,008 less revenue of $80,000 from the sale  of the lot). If a home valued at $480,000 was constructed at the site, the portion of  city taxes would be $2,880 which is $1,602 higher than the current taxes. EDA  funding would be utilized for the purchase.    Mr. Alger noted that if EDA has the high bid, the city attorney will file a Summons  and Complaint to reduce the redemption period from six months to five weeks  because the property is abandoned. If redemption does not take place, the city will  acquire the property and seek bids for demolition of the house.     Ms. Stacy Woods, city attorney, responded to questions from the EDA regarding  a reimbursement process to the city if the current owner completes the redemption  process.    EDA Meeting   Page 3 February 28, 2022  RESOLUTION 2022‐02  Item 5  Commissioner Isenberg introduced the following resolution and moved its  adoption “RESOLUTION AUTHORIZING THE ACQUISITION OF 5802  BOONE AVENUE NORTH BY THE ECONOMIC DEVELOPMENT  AUTHORITY THROUGH BIDDING AT SHERIFF’S MORTGAGE  FORECLOSURE SALE (IMPROVEMENT PROJECT NO. 1088).” The motion for  the adoption of the foregoing resolution was seconded by Commissioner Hoffe,  and upon vote being taken thereon, the following voted in favor thereof: Hemken,  Hoffe, Isenberg, London; and the following voted against the same: None;  Abstained: None; Absent: Elder; whereupon the resolution was declared duly  passed and adopted, signed by the president which was attested to by the  executive director.    5306 RHODE ISLAND  AVE N  (IMPROVEMENT  PROJECT NO. 1080)  Item 6  President Hemken introduced for discussion EDA Item 6, Resolution approving  contract with Nitti Rolloff Services Inc. for hazardous material abatement, tree  removal, demolition of site improvements, well sealing, site grading, and  installation of utility improvements at 5306 Rhode Island Avenue North  (Improvement Project No. 1080).    Mr. Jeff Alger, community development specialist, stated in January of 2022 the  EDA acquired the single‐family home located at 5306 Rhode Island Avenue North  as part of the city’s scattered site housing program. Bids were solicited to prepare  the lot for redevelopment. The low bid was submitted by Nitti Rolloff Services,  Inc. for $29,700. The work includes hazardous material abatement, tree removal,  demolition of the building and site improvements, well sealing, site grading,  sewer lining, and water service valve replacement. He noted the bid was higher  than past projects as there is additional tree removal costs and sewer lining costs.  The city has used the services of Nitti Rolloff in the past with good experiences.  The EDA budget would fund the contract.    Commissioner London pointed out the bid did not show line item pricing. He  questioned whether it would be more cost effective to perform the sewer lining  work as part of a larger sewer lining project contracted by the city.     Mr. Bernie Weber, director of public works, commented that the process for a  residential housing project is different from a commercial sewer re‐lining project.    RESOLUTION 2022‐03  Item 6  Commissioner London introduced the following resolution and moved its  adoption “RESOLUTION APPROVING CONTRACT WITH NITTI ROLLOFF  SERVICES INC. FOR HAZARDOUS MATERIAL ABATEMENT, TREE  REMOVAL, DEMOLITION OF SITE IMPROVEMENTS, WELL SEALING,  SITE GRADING, AND INSTALLATION OF UTILITY IMPROVEMENTS AT  5306 RHODE ISLAND AVENUE NORTH (IMPROVEMENT PROJECT NO.  1080).” The motion for the adoption of the foregoing resolution was seconded by  Commissioner Hoffe, and upon vote being taken thereon, the following voted in  favor thereof: Hemken, Hoffe, Isenberg, London; and the following voted against  the same: None; Abstained: None; Absent: Elder; whereupon the resolution was  declared duly passed and adopted, signed by the president which was attested to  by the executive director.    EDA Meeting   Page 4 February 28, 2022  ADJOURNMENT Motion was made by Commissioner Isenberg, seconded by Commissioner Hoffe,  to adjourn the meeting. All present voted in favor. Motion carried. The New Hope  EDA adjourned at 8:15 p.m.    Respectfully submitted,    Valerie Leone, City Clerk    I:\RFA\COMM DEV\2022\EDA\Q ‐ 5306 Rhode Island Ave N Lot Sale 05‐09‐22.docx    Request for Action  May 9, 2022    Approved by: Kirk McDonald, City Manager  Originating Department: Community Development  By: Jeff Alger, Community Development Specialist;   Jeff Sargent, Director of Community Development  Agenda Title  Resolution approving purchase and redevelopment agreement with Fieldstone Family Homes, Inc. for the sale  of 5306 Rhode Island Avenue North (improvement project no. 1080)  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 5306 Rhode Island Avenue North to Fieldstone Family  Homes.  Policy/Past Practice  The Economic Development Authority reviews proposals for the redevelopment of scattered site housing  properties prior to executing a contract with the preferred buyer/builder.  Background  The Economic Development Authority (EDA) acquired the property located at 5306 Rhode Island Avenue  North for $213,000 in January of 2022, as part of the city’s scattered site housing program. The property is  located in a priority redevelopment neighborhood. The home was demolished in April of 2022 and the lot has  been prepared for construction of a new single‐family home. A Request for Proposals (RFP) marketing the lot  was sent to more than 40 builders on April 6, 2022. This includes several new builders contacted by city staff  in an attempt to continue increasing the number and quality of proposals that are submitted. The non‐ negotiable minimum lot sale price was set at $80,000 and builders were allowed the opportunity to submit a  higher offer in order to make their proposal more competitive. The RFP stipulated that the proposed house  “must be an owner‐occupied, single‐family home.” The occupancy requirement applies to the first buyer for  period of two years. It did not identify a preferred home style for the lot but stated “two‐story and rambler  designs have commanded the highest prices when compared to other home styles such as split entry.”  Significant changes from the most recent RFP included:   Increasing the minimum lot sale price to $80,000. In May of 2021, minimum lot prices were as follows:  o $65,000 for 5213 Pennsylvania Avenue North.  o $70,000 for 4637 Aquila Avenue North.   Specifying that if an above‐grade patio door is included, the inclusion of a deck is preferred.   A new attachment listing homes in the city that have sold for more than $440,000 since January 1, 2021.   A new attachment listing the highest valued previous scattered site projects.   A new checklist to be completed by builders listing upgrades included as part of a proposal.    Proposals were due on April 27, 2022. The EDA received proposals from the following builders/contractors:   Donnay Homes   Fieldstone Family Homes   Fortis Builders   Great Buy Homes  Agenda Section EDA Item Number  4    Request for Action, Page 2     T Forceconsulting, LLC    Staff reviewed the proposals with the city manager and selected “Macalester Elevation B” from Fieldstone  Family Homes as the preferred proposal. Fieldstone Family Homes included two home options with their  submission and staff selected the design with more finished square footage and a higher projected sale price as  the preferred design. While there were several very competitive proposals submitted for this lot, Fieldstone  Family Homes’ two‐story home includes the highest projected sale price ($575,000), the highest lot purchase  price ($87,000), and several upgrades, including high end interior finishes. The home includes an office on the  main level, four walk‐in closets, and a deck in the rear yard. Other upgrades include a gas fireplace with stone  surround and a mantle, granite/quartz countertops in the bathrooms and kitchen, a tiled kitchen backsplash, a  tiled owner’s shower, solid core interior doors, a mudroom with a built‐in bench, and a finished laundry room.  While the home has the least finished square footage (2,259 square feet), staff felt the interior finishes and  upgrades, lot purchase price, and projected sale price outweighed this factor. The buyer would have the option  of finishing the basement. Fieldstone Family Homes is a custom home builder out of Burnsville that built 97  homes in the region last year. This is the first proposal they have submitted in New Hope through the scattered  site housing program.    The proposal from T Forceconsulting, LLC was submitted by a general contractor and does not include a list  of homes that have been built in Minnesota, as requested by the RFP. The proposal does not include detailed  floorplans and the city’s upgrade checklist was not submitted. The proposal from Fortis Builders has a high  level of curb appeal and features a desirable floorplan but does not rank first when comparing any base  characteristics or attributes. Donnay Homes’ proposal features a three‐level split that includes high end interior  finishes and the most upgrades on the city’s upgrade checklist but has the lowest projected sale price at  $499,000. Great Buy Homes’ proposal includes the most finished square footage (2,783 square feet), bedrooms  (five), and bathrooms (four) but has fewer interior upgrades and is projected to sell for $525,000.    The base characteristics and attributes of each proposal are summarized as follows:     Fieldstone Family  Homes ʺElevation  Bʺ (Preferred)  Donnay Homes Fortis Builders Great Buy Homes T Forceconsulting,  LLC  Lot purchase price $87,000 $83,000 $80,000 $81,000 $82,000  Projected sale  price  $575,000 $499,000 $520,000‐$540,000 $510,000  $525,000  Design 2‐story 3‐level split 2‐story 2‐story 2‐story  Finished Space 2,259 SF 2,430 SF 2,360 SF 2,783 SF Incomplete floor  plans, estimated at  5,700 SF  Bedrooms 4 4 4 5 5  Bathrooms 3 (1 full; 1 ¾; 1 ½) 3 (1 full; 2 ¾) 3 (1 full; 1 ¾; 1 ½) 4 (2 full; 1 ¾; 1 ½) 5 (details not  provided)  Garage 3‐stall with glass  inserts  3‐stall with glass  inserts  3‐stall with glass  inserts  3‐stall with glass  inserts  3‐stall            Request for Action, Page 3     Fieldstone Family  Homes ʺElevation  Bʺ (Preferred)  Donnay Homes Fortis Builders Great Buy Homes T Forceconsulting,  LLC  Façade  Cultured stone  on lower 1/3 of  garage   Front porch   Address  numbers built  into façade   Board and  batten siding   Front door with  window & 2  sidelights   2 pillars with  cultured stone  base   Cultured stone  on lower 1/3 of  garage and  lower 1/3 of  portion of house   Front porch   Address  numbers built  into facade   Shakes   Front door with  2 sidelights   2 pillars with  cultured stone  base   Gutters   Cultured stone  on lower 1/3 of  garage   Front porch   Address  numbers built  into façade   Board and  batten siding   Front door with  2 sidelights   2 pillars with  cultured stone  base   Cultured stone  on lower 1/3 of  garage & entire  area behind  front porch   Front porch   Address  numbers built  into façade   Shakes   Board and  batten siding   Front door with  window & 1  sidelight   Front porch   Front door with  window   5 pillars with  cultured stone  base  Other  Deck (10ʹ x 12ʹ)   Office on main  level   Mudroom   Gas fireplace   Granite/quartz  countertops in  bathrooms &  kitchen   Backsplash/tile  on kitchen walls   Tiled ownerʹs  shower   Solid core  interior doors   Finished  laundry room   4 walk‐in closets   Built‐in bench   Landscaping  rocks   Unfinished  basement   3 finished levels,  including  basement   Patio (10ʹ x 10ʹ)   Mudroom   Gas fireplace   Granite/quartz  countertops in  bathrooms &  kitchen   Backsplash/tile  on kitchen walls   Soaking tub   Tiled baths/  showers & floor   Finished  laundry room   1 walk‐in closet   Vaulted ceilings   1 blank wall   Office on main  level   Mudroom   Gas fireplace   Granite/quartz  countertops in  bathrooms &  kitchen   Tiled ownerʹs  shower & floor   Finished  laundry room   2 walk‐in closets   Landscaping  rocks   1 blank wall   Unfinished  basement   3 finished levels,  including  basement   Gas fireplace   Granite/quartz  countertops in  kitchen   Tiled ownerʹs  shower   Finished  laundry room   2 walk‐in closets   Built‐in bench   No side  elevations  provided   Granite/quartz  countertops in  bathrooms &  kitchen   Soaking tub   LEED certified  Upgrade  Checklist  29 of 42 checked 32 of 42 checked 26 of 42 checked 25 of 42 checked Not submitted    Cost & Tax Impact of Improvements  It is anticipated that expenses associated with the project would be approximately $253,072. The lot would be  sold for $87,000, resulting in a net loss of $166,072. The new home would result in a significant increase in the  subject parcel’s taxable market value. If the property were to be valued at $575,000 in 2023, it is estimated that  total taxes paid to the city in 2024 would increase by $2,100, or 156%, as compared to those that will be allocated  to the city in 2022.    Request for Action, Page 4    Old House New House  Estimated Market Value 2021,  Payable 2022  Projected Market Value 2023,  Payable 2024  Change Percent  Change  $225,000 $575,000 $350,000 155.56%        Taxes Allocated to City 2021,  Payable 2022  Taxes Allocated to City 2023,  Payable 2024  Change Percent  Change  $1,350 $3,450 $2,100 155.56%    The following table illustrates the Return On Investment (ROI) and tax benefit associated with the estimated  increase in taxable property value over the next several years:    # of Years  (Year payable)  Additional Taxes   Collected By City  Total  Cost/Revenue  Return On  Investment  0 (present) $0 $(166,072.00) ‐100.00%  1 (2024) $2,100.00  $(163,972.00) ‐98.74%  5 (2028) $11,149.19  $(154,922.81) ‐93.29%  10 (2033) $24,074.15  $(141,997.85) ‐85.50%  15 (2038) $39,057.72  $(127,014.28) ‐76.48%  20 (2043) $56,427.79  $(109,644.21) ‐66.02%  25 (2048) $76,564.46  $(89,507.54) ‐53.90%  30 (2053) $99,908.37  $(66,163.63) ‐39.84%    The estimated ROI for the project over 30 years is ‐39.84% and the estimated Internal Rate of Return (IRR) for  the project over 30 years is ‐2.69% (calculations attached). The calculations utilize an estimated 3% tax value  growth rate, which is applied to the original taxable market value for the old home and the increased taxable  market value for the new home, both over 30 years. A cost and tax impact comparison of this project and other  recent projects that have been approved since implementation of an analysis template that utilizes tax growth  rate assumptions is attached.    The primary focus of the scattered site program is to target distressed single‐family properties throughout the  city, with the goal of improving residential neighborhoods. It is understood that potential losses are incurred  on each project, as the cost to acquire and redevelop distressed properties often exceeds the value of the new  or rehabilitated home.    Development Agreement and Next Steps  Staff worked with the assistant city attorney to draft a resolution and Purchase and Redevelopment Agreement  for the sale of the lot. The agreement ensures that the provisions set forth in the RFP will be met and sets the  purchase price of the lot at $87,000. 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. The RFP stipulates that  closing must occur within 60 days of approval of the sale. The Purchase and Redevelopment Agreement  stipulates that the home must be completed within a year of the closing date.      Request for Action, Page 5    Funding  Funding for this project would come from the EDA budget. The city has budgeted $500,000 for scattered site  projects in 2022. The acquisition of 5802 Boone Avenue North is not included in the 2022 budget at this time as  the city was unable to acquire the property at the recent sheriff’s sale due to the opening bid being more than  what staff had been authorized to spend on the property.    Project Estimated Net Cost  5306 Rhode Island Ave N $166,072.00  4201 Boone Ave N $193,975.00  Total $360,047.00     Annual Budget (2022) $500,000.00  Under/Over Budget +$139,953.00    Recommendation  Staff recommends that the EDA conduct a public hearing and approve a resolution approving the sale of the  scattered site lot located at 5306 Rhode Island Avenue North to Fieldstone Family Homes Inc.  Attachments   Resolution   Purchase and Redevelopment Agreement with RFP and proposed plans   Other proposals   Front elevation comparison   Budget   Estimated Tax Impact of Improvements   Estimated Return on Investment   Estimated Internal Rate of Return   Tax Calculator   Comparison of Costs & Tax Impact of Recent Projects    CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 22-___ RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH FIELDSTONE FAMILY HOMES, INC. FOR THE SALE OF 5306 RHODE ISLAND AVENUE NORTH (IMPROVEMENT PROJECT NO. 1080) 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 5306 Rhode Island Avenue North, New Hope, MN, P.I.D. 08-118-21-22-0037, and legally described as follows: Lot 11, Block 3, J.P. Riedel & Company’s St. Raphael Addition, except that part lying Northerly of a line drawn from a point on the Westerly line of Lot 12, said Block 3, Distant 8 feet Northerly from the Southwesterly corner of said Lot 12 to a point on the Easterly line of said Lot 11, distant 14 feet Southerly from the Northeasterly corner of said Lot 11, according to the recorded plat thereof, and situated in Hennepin Cunty, Minnesota. Parcel Plat 2 That part of Lot 12, Block 3, J.P. Riedel & Company’s St. Raphael Addition, lying Southerly of a line drawn from a point on the Westerly line of said Lot 12, distant 8 feet Northerly from the Southwesterly corner of said Lot 12 to a point on the Easterly line of Lot 11, said Block 3, according to the recorded plat thereof, and situated in Hennepin County, Minnesota. (the “Property”) as evidenced by the warranty deed recorded with the Hennepin County Recorder’s Office on January 27, 2022, as Document No. 11072193; and WHEREAS, the EDA purchased the Property with the intention of razing the existing house and all site improvements in preparation for the sale to a builder to construct 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 Fieldstone Family Homes, Inc., a Minnesota corporation (“Fieldstone”) regarding the sale and redevelopment of the Property; and WHEREAS, the EDA arrived at an agreement with Fieldstone to sell the Property for the purchase price of $87,000.00 for the construction of Fieldstone’s “Macalester Elevation B” plan upon all of the terms set forth in the RFP; and WHEREAS, the EDA has accepted Fieldstone’s offer and has presented a draft Purchase and Redevelopment Agreement for the Property to Fieldstone 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 Fieldstone for the sum of $87,000.00, in order for Fieldstone to redevelop and build a new single family home in accordance with the City’s scattered site housing program and policy; and WHEREAS, the City staff is hereby seeking approval from the EDA of the Purchase and Redevelopment Agreement, subject to other terms relating to the closing on the sale of the Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. That the sale of the Property by the EDA to Fieldstone Family Homes, Inc., for the purchase price of $87,000, for the construction of Fieldstone’s “Macalester Elevation B” plan 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. 3. The EDA shall use due diligence for selling the Property to Fieldstone for the construction of a single-family home in the “Macalester Elevation B” design, 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 9th day of May, 2022. ____________________________________ Kathi Hemken, President Attest: _____________________________ Kirk McDonald, Executive Director Exhibit A Purchase and Redevelopment Agreement See attached. P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11447 5306 Rhode Island Ave. N\Resolution Approving Sale of 5306 Rhode Island Ave N.docx 1 PURCHASE AND REDEVELOPMENT AGREEMENT This Purchase and Redevelopment Agreement ("Agreement") is made by and between Fieldstone Family Homes, Inc., a Minnesota corporation (“Buyer") and the Economic Development Authority in and for the City of New Hope, Minnesota, a public body corporate and politic created pursuant to the laws of the State of Minnesota ("Seller") effective May ___, 2022. 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 5306 Rhode Island Avenue North, New Hope, Minnesota 55428, PID 08-118-21-22-0037 and legally described on the attached Exhibit A (the “Property”). 1. Purchase Price. The purchase price for the Property is Eighty Seven Thousand and No/100 Dollars ($87,000.00) (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 Eighty Five Thousand and No/100 Dollars ($85,000.00) payable by wire, cashier’s check or cash on the “Date of Closing”, as that term is defined in paragraph 6 below. There are no items of personal property or fixtures included in this sale. 2. Title Conveyed. On the Date of Closing, Seller shall deliver a Quit Claim Deed (the "Deed") to Buyer conveying marketable title of record, free and clear of liens, encumbrances, assessments, and restrictions, except for the “Permitted Encumbrances” set forth on Exhibit B and the restrictive covenants referenced below in paragraph 4.b. 3. Representations of Seller. Seller represents and agrees as follows: a. Seller owns the Property and has the right to sell the same, and that there are no unrecorded contracts, leases, easements or other agreements or claims of any third party affecting the use, title, occupancy or development of the Property, there are no parties other than Seller in possession of any portion of the Property, and no person, firm or entity has any right of refusal, option or other right to acquire all or any part of the Property. b. Seller has not received any notice from any governmental authority concerning any eminent domain, condemnation, special taxing district, or rezoning proceedings. c. To the best of Seller’s knowledge, there are no septic systems or wells on the Property other than the sealed well as described on Well Sealing Certificate and provided to Buyer. 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. 2 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. 3 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. 4 6. Closing. a. Closing shall occur on or before July 11, 2022 (the “Date of Closing” or “Closing”), unless both parties agree, in writing, to an earlier or later time. b. Closing shall occur at the office of the Title Company. c. Seller shall deliver at closing the following executed and acknowledged documents: (i) the Deed; (ii) affidavit(s) in industry-standard form(s) stating that possession of the Property is being delivered free of any mechanic's or statutory liens in connection with work performed prior to closing; Seller is not a foreign person or entity; and addressing such other matters as Buyer may reasonably require. 7. Payments/Prorations. At Closing, Seller shall pay the cost of recording any instrument (other than the Deed) necessary to place title in the condition required under this Agreement, State deed tax, and all special assessments levied, pending or constituting a lien against the Property as of the Date of Closing, including without limitation any installments of special assessments and interest payable with general real estate taxes in the year of closing. Seller will pay general real estate taxes payable in the year prior to the year of closing and all prior years. Buyer shall pay at Closing the cost of the owner’s policy or lender’s policy of title insurance (if any), sales tax (if any) resulting from the Closing, the fees required for recording the Deed, the Purchase and Redevelopment Agreement, the assessment agreement and restrictive covenants and all customary closing fees charged by the Title Company or other closing agent to both Seller and Buyer, if any, utilized to close the transaction contemplated by this Agreement. General real estate taxes payable in the year of closing shall be prorated by Seller and Buyer as of the closing date based upon a calendar year. Each party shall pay its own attorney’s fees. 8. Condemnation. If, prior to the Date of Closing, all or any part of the Property shall be condemned by governmental or other lawful authority, Buyer shall have the option of (a) completing the purchase contemplated by this Agreement, in which event all condemnation proceeds or claims thereof shall be assigned to Buyer, or (b) canceling this Agreement, in which event the Earnest Money shall be refunded and this Agreement shall be terminated with neither party having any rights against or obligations to the other except rights or obligations under this Agreement which provide for continued exercise following closing or cancellation or other termination of this Agreement, and Seller shall be entitled to any and all condemnation proceeds. 9. Construction of Home. Buyer agrees that it will construct a new single family home on the Property. This covenant shall survive the delivery of the Deed. 5 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 May 9, 2022, attached as Exhibit F and identified as the “Macalester Elevation B” plan. 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 6 permanent financing necessary to enable Buyer or any successor in interest to the Property, or any part thereof, to construct the Minimum Improvements or component thereof. (ii) If Buyer seeks to effect a Transfer prior to issuance of the Certificate of Completion, Seller shall be entitled to require as conditions to such Transfer that: (1) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of Seller, necessary and adequate to fulfill the obligations undertaken in this Agreement by Buyer as to the portion of the Property to be transferred; and (2) Any proposed transferee, by instrument in writing satisfactory to Seller and in form recordable in the public land records of Hennepin County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of Seller, have expressly assumed all of the obligations of Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by Seller) deprive Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by Seller to the contrary, no such transfer or approval by Seller thereof shall be deemed to relieve Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto. (3) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the 7 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 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. 8 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 9 with copy to: Stacy A. Woods, New Hope City Attorney Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 BUYER: Fieldstone Family Homes, Inc. 801 Cliff Rd. E., Suite 135 Burnsville, MN 55337 13. No Broker Involved. Seller and Buyer represent and warrant to each other that there is no broker involved in this transaction with whom it has negotiated or to whom it has agreed to pay a broker commission. Buyer agrees to indemnify Seller for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Buyer, and Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or finders' fees in connection with negotiations for purchase of the Property arising out of any alleged agreement or commitment or negotiation by Seller. 14. Remedies. If Buyer defaults under this Agreement, Seller shall have the right to terminate this Agreement by giving written notice to Buyer as provided by law. If Buyer fails to cure such default as provided by law, this Agreement will terminate, and upon such termination Seller will retain the Earnest Money and neither party shall have any rights or obligations against the other except rights or obligations under this Agreement which provide for continued exercise following the cancellation or other termination of this Agreement. If Seller defaults under this Agreement, Buyer’s only remedy shall be to terminate the Agreement and recover the Earnest Money paid to Seller. Buyer shall not have any right to the remedy of specific performance 15. Assignment/Prohibition Against Transfer of Property. Buyer may not assign its rights and obligations hereunder without the prior written consent of Seller, which consent may be granted or withheld by Seller in its sole discretion. 16. Miscellaneous. This Agreement shall be governed by the laws of the State of Minnesota. No amendment of this Agreement shall be valid or binding unless executed by authorized representatives of both Seller and Buyer. The headings and captions of this Agreement are for the convenience of the parties only and shall not be looked to in the interpretation or enforcement of this Agreement. Seller and Buyer acknowledge and agree that each has had opportunity to participate in the drafting of this Agreement and accordingly acknowledge and agree that this Agreement as a whole and each of is clauses are not to be interpreted in favor of or against either party. This Agreement may be signed in counterpart, with each copy of the Agreement binding upon the signing party at the time of signing and together which shall constitute a single document. 17. Survival. The Parties representations contained herein shall survive the delivery of the Deed. 10 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the above date (“Effective Date”). SELLER: Economic Development Authority in and for the City of New Hope By: _______________________________ Kathi Hemken Its: President Dated: May____, 2022 By: _______________________________ Kirk McDonald Its: Executive Director Dated: May____, 2022 BUYER: Fieldstone Family Homes, Inc. By: ________________________________ Trent Johnson Its: Chief Executive Officer Dated: May____, 2022 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of May, 2022, 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 11 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of May, 2022, by Trent Johnson, the Chief Executive Officer of Fieldstone Family Homes, Inc., a Minnesota corporation, on behalf of said corporation. _______________________________ Notary Public DRAFTED BY: Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, #201 Brooklyn Park, MN 55443 (763) 424-8811 12 Exhibit A Legal Description Lot 11, Block 3, J.P. Riedel & Company’s St. Raphael Addition, except that part lying Northerly of a line drawn from a point on the Westerly line of Lot 12, said Block 3, Distant 8 feet Northerly from the Southwesterly corner of said Lot 12 to a point on the Easterly line of said Lot 11, distant 14 feet Southerly from the Northeasterly corner of said Lot 11, according to the recorded plat thereof, and situated in Hennepin Cunty, Minnesota. Parcel Plat 2 That part of Lot 12, Block 3, J.P. Riedel & Company’s St. Raphael Addition, lying Southerly of a line drawn from a point on the Westerly line of said Lot 12, distant 8 feet Northerly from the Southwesterly corner of said Lot 12 to a point on the Easterly line of Lot 11, said Block 3, according to the recorded plat thereof, and situated in Hennepin County, Minnesota. 13 Exhibit B Permitted Encumbrances 1. Restrictions, reservations, covenants and easements relating to use or improvement of the Property without effective forfeiture provisions of record on the Effective Date; 2. Building and zoning laws, ordinances, city, state and federal regulations; 3. Governmental regulations, if any, affecting the use and occupancy of the Property; 4. All rights in public highways upon the land; 5. Easements for public rights-of-way and public and private utilities, which do not interfere with present improvements; 6. Reservations to the State, in trust for the taxing districts concerned, of minerals and mineral rights in those portions of the Property the title to which may have at any time heretofore been forfeited to the State for nonpayment of real estate taxes. 7. The lien of unpaid special assessments, if any, not presently payable but to be paid as a part of the annual taxes to become due; 8. The lien of unpaid real estate taxes, if any, not presently payable but to be paid as part of the annual taxes to become due. 14 Exhibit C Restrictive Covenants See attached. 1 RESTRICTIVE COVENANTS THESE RESTRICTIVE COVENANTS (“Agreement”) dated effective the ___ day of ____________, 2022, by and between the City of New Hope, a Minnesota municipal corporation (“City”) and Fieldstone Family Homes, Inc., a Minnesota corporation (“Fieldstone”). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between the City and Fieldstone dated effective May ___, 2022 (“Purchase Agreement”), Fieldstone purchased the real property located at 5306 Rhode Island Avenue North in the City of New Hope from the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesot a (“EDA”), which property is legally described on the attached Exhibit A (“Property”) which purchase closed on ______________, 2022; and WHEREAS, Fieldstone has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and Fieldstone have agreed Fieldstone 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 Fieldstone have agreed the City may levy a $20,000.00 assessment against the Property prior to Fieldstone’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 Fieldstone. 2 NOW THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, Fieldstone agrees as follows: AGREEMENT 1. Restrictive Covenants Fieldstone 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 Fieldstone 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 Fieldstone and the Owner-occupant verifying the Owner-occupant’s intent to occupy the Dwelling as a primary residence the Property shall be released from the restriction stated in paragraph 1(a) above. b) The Property shall be released from the restriction of paragraph 1(b) above on the two (2) year anniversary of the date the Property was conveyed in compliance with paragraph 1(a). 3. Waiver by City Notwithstanding the restrictions stated above, the City may waive the restrictions stated above upon a finding of hardship or other extenuating circumstances sufficient to justify the waiver in its sole discretion. 4. Agreement to Assessment Fieldstone 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 _____________, 2023; and/or (b) if Fieldstone sells the Property with the completed home to a non-owner-occupant in violation of paragraph 1(a) above. Further, Fieldstone 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 Fieldstone Fieldstone expressly waives objection to any irregularity with regard to any assessment levied against the Property per this Agreement or any claim that 3 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 Fieldstone 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. Fieldstone’s Successors This Agreement shall not be terminated by: a) Voluntary dissolution of Fieldstone or any parent, subsidiary or successor of Fieldstone; b) Merger whereby Fieldstone (or such parent, subsidiary or successor of Fieldstone) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of Fieldstone. 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 kmcdonald@ci.new-hope.mn.us 4 If to Fieldstone: Fieldstone Family Homes, Inc. Attn: Trent Johnson 801 East Cliff Road, Suite 135 Burnsville, MN 55337 10. Governing Law All matters relating to the interpretation, construction, validity and enforcement of this Agreement shall be governed by the internal laws of the State of Minnesota. 11. Cumulative Rights Each and all of the various rights, power and remedies of the City in this Agreement shall be considered as cumulative with and in addition to any other rights, powers, or remedies of City, and no one of them is exclusive to the others, or is exclusive to any other rights, powers and remedies allowed by law. The exercise or partial exercise of any right, power or remedy shall neither constitute the election thereof, nor the waiver of any other power or remedy. 12. Amendment This Agreement may be modified or amended only by a written instrument executed by Fieldstone and the City. 13. Counterpart Signatures This Agreement may be signed in counterpart, with each copy of the Agreement binding upon the signing party at the time of signing and together which shall constitute a single document. IN AGREEMENT, the parties have executed these Restrictive Covenants effective the day and year first above-written. 5 City of New Hope By: ________________________________ Tim Hoyt Its: City Manager Dated: ___________, 2022 Fieldstone Family Homes, Inc. By: ________________________________ Trent Johnson Its: Chief Executive Officer Dated: _____________, 2022 STATE OF MINNESOTA COUNTY OF HENNEPIN }ss. The foregoing instrument was acknowledged before me this ____ day of ____________, 2022, by Tim Hoyt, 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 ______________, 2022, by Trent Johnson, the Chief Executive Officer of Fieldstone Family Homes, Inc., a Minnesota corporation, on behalf of said corporation. (Notary Public Seal) ______________________________________ Notary Public Drafted By: JENSEN SONDRALL PERSELLIN & WOODS, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763) 424-8811 6 Exhibit A Legal Description Lot 11, Block 3, J.P. Riedel & Company’s St. Raphael Addition, except that part lying Northerly of a line drawn from a point on the Westerly line of Lot 12, said Block 3, Distant 8 feet Northerly from the Southwesterly corner of said Lot 12 to a point on the Easterly line of said Lot 11, distant 14 feet Southerly from the Northeasterly corner of said Lot 11, according to the recorded plat thereof, and situated in Hennepin Cunty, Minnesota. Parcel Plat 2 That part of Lot 12, Block 3, J.P. Riedel & Company’s St. Raphael Addition, lying Southerly of a line drawn from a point on the Westerly line of said Lot 12, distant 8 feet Northerly from the Southwesterly corner of said Lot 12 to a point on the Easterly line of Lot 11, said Block 3, according to the recorded plat thereof, and situated in Hennepin County, Minnesota. P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11447 5306 Rhode Island Ave. N\Restrictive Covenant - 5306 Rhode Island Ave N.docx 15 Exhibit D Assessment Agreement See attached. 1 ASSESSMENT AGREEMENT THIS ASSESSMENT AGREEMENT (“Agreement”) dated effective as of the ___ day of May, 2022, by and between the City of New Hope, a Minnesota municipal corporation (“City”) and Fieldstone Family Homes, Inc., a Minnesota corporation (“Fieldstone”). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between City and Fieldstone dated effective May ___, 2022 (“Purchase Agreement”) Fieldstone purchased the real property located at 5306 Rhode Island Avenue North in the City of New Hope from the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minneso ta (“EDA”), which property is legally described on the attached Exhibit A (“Property”) which purchase closed on ____________, 2022; and WHEREAS, Fieldstone has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and Fieldstone have agreed Fieldstone 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 Fieldstone have further agreed the City may levy a $20,000.00 assessment against the Property prior to Fieldstone’s sale of the Property with the completed home if it is not being sold to an owner-occupant to be owned and occupied by the owner- occupant for at least two (2) years. Further, said assessment may be certified to Hennepin County for collection with real estate taxes payable in a single installment. AGREEMENT 1. Completion of Project Fieldstone hereby covenants and agrees with the City that the new home on the Property shall be fully completed on or before ______________, 2023. Fully completed shall mean the Property shall be improved with a new single-family house. 2 2. Agreement to Assessment Fieldstone 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 ____________, 2023; (b) if Fieldstone sells the Property with the completed home to a non-owner-occupant; and/or (c) if the Property is leased to a non-owner-occupant in the first two (2) years after initial conveyance. Further, Fieldstone 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 Fieldstone Fieldstone 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. Fieldstone’s Successors This Agreement shall not be terminated by: a) The voluntary dissolution of Fieldstone or any parent, subsidiary or successor of Fieldstone; b) Merger whereby Fieldstone (or such parent, subsidiary or successor of Fieldstone) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of Fieldstone. 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: Timothy Hoyt 4401 Xylon Avenue North New Hope, MN 55428-4898 kmcdonald@ci.new-hope.mn.us 3 If to Fieldstone: Fieldstone Family Homes, Inc. Attn: Trent Johnson 801 East Cliff Road Suite 135 Burnsville, MN 55337 7. Governing Law All matters relating to the interpretation, construction, validity and enforcement of this Agreement shall be governed by the internal laws of the State of Minnesota. 8. Cumulative Rights Each and all of the various rights, power and remedies of the City in this Agreement shall be considered as cumulative with and in addition to any other rights, powers, or remedies of the City, and no one of them is exclusive to the others, or is exclusive to any other rights, powers and remedies allowed by law. The exercise or partial exercise of any right, power or remedy shall neither constitute the election thereof, nor the waiver of any other power or remedy. 9. Amendment This Agreement may be modified or amended only by a written instrument executed by Fieldstone and the City. 10. Counterpart Signatures This Agreement may be signed in counterpart, with each copy of the Agreement binding upon the signing party at the time of signing and together which shall constitute a single document. IN AGREEMENT, the parties have executed this Assessment Agreement effective the day and year first above-written. EXECUTION AND NOTARY PAGE FOLLOWS 4 City of New Hope By: ________________________________ Tim Hoyt Its: City Manager Dated: ____________, 2022 Fieldstone Family Homes, Inc. By: ________________________________ Trent Johnson Its: Chief Executive Officer Dated: ______________, 2022 STATE OF MINNESOTA COUNTY OF HENNEPIN }ss. The foregoing instrument was acknowledged before me this ____ day of ____________, 2022, by Tim Hoyt, 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 _________, 2022, by Trent Johnson, the Chief Executive Officer of Fieldstone Family Homes, Inc., a Minnesota corporation, on behalf of said corporation. (Notary Public Seal) ______________________________________ Notary Public Drafted By: JENSEN SONDRALL PERSELLIN & WOODS, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763) 424-8811 P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11447 5306 Rhode Island Ave. N\Assessment Agreement - 5306 Rhode Island Ave N.docx 5 Exhibit A Legal Description Lot 11, Block 3, J.P. Riedel & Company’s St. Raphael Addition, except that part lying Northerly of a line drawn from a point on the Westerly line of Lot 12, said Block 3, Distant 8 feet Northerly from the Southwesterly corner of said Lot 12 to a point on the Easterly line of said Lot 11, distant 14 feet Southerly from the Northeasterly corner of said Lot 11, according to the recorded plat thereof, and situated in Hennepin Cunty, Minnesota. Parcel Plat 2 That part of Lot 12, Block 3, J.P. Riedel & Company’s St. Raphael Addition, lying Southerly of a line drawn from a point on the Westerly line of said Lot 12, distant 8 feet Northerly from the Southwesterly corner of said Lot 12 to a point on the Easterly line of Lot 11, said Block 3, according to the recorded plat thereof, and situated in Hennepin County, Minnesota. 16 Exhibit E Request for Proposal (“RFP”) Guidelines See attached. City of New Hope, Minnesota Request For Proposals –5306 Rhode Island Avenue North Date: April , 2022 From: The Economic Development Authority (EDA) in and for the city of New Hope Subject: Request for proposals for construction of new single-family home at 5306 Rhode Island Avenue North. Overview: The city of New Hope EDA owns the property located at 5306 Rhode Island Avenue North, New Hope, MN 55428 (PID 08-118-21-22-0037). The EDA is requesting proposals from builders to purchase the vacant lot 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 was previously occupied by a home that was razed by the EDA. Enclosed, please find the proposal form and specifications for submitting a proposal. Minimum Lot Price: This lot is being offered at a minimum base price of $80,000. The EDA will consider higher offers for the lot; however, submitting a higher offer does not guarantee selection of a proposal. Submission:Interested bidders must submit enclosed Bid Form by U.S. Mail, e-mail, or in person. All documents submitted will be made available to the public and presented at an EDA meeting. Bids shall be submitted to Jeff Alger, Community Development Specialist. City of New Hope Community Development Department Attention: Jeff Alger 4401 Xylon Avenue North New Hope, MN 55428 jalger@newhopemn.gov Deadline:Proposals must be submitted using the enclosed bid form and received no later than April 2, 2022, at 1:00 p.m.City staff will review the submitted proposals and make a recommendation to the EDA. It is anticipated that the EDA will make a selection at the May 9, 2022, meeting. Construction of the new home must be completed in full no later than one (1) year after the closing on the purchase of the lot. City of New Hope, Minnesota Proposal Form Property Owner: City of New Hope Economic Development Authority (EDA) Property Address: 5306 Rhode Island Avenue North, New Hope, MN 55428 Property Identification Number:08-118-21-22-0037 Minimum Lot Price: This lot is being offered at a minimum base price of $80,000. The EDA will consider higher offers for the lot; however, submitting a higher offer does not guarantee selection of a proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase this lot for $____________________ ($80,000 minimum) and build a new single-family house in accordance with the RFP guidelines. If a builder’s proposal is accepted by the EDA, the 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: _______________________________________________________________ License Number:________________________________________________________________ Address:___________________________________ ___________________________________ Telephone:______________________________________________________________________ Email:____________________________________________________________________________ Name & Title:____________________________________________________________________ Signature: ______________________________________Date: ____________________ City of New Hope, Minnesota General Notes 1. Only complete proposals will be considered. The city retains absolute discretion in deciding whether or not to accept any particular proposal. 2. State licensed builders who have built at least three (3) houses in Minnesota in the last five (5) years, or have equivalent experience acceptable to the city, are eligible to submit proposals. The home may be speculative or for specific buyers. 3. The city is interested in proposals that will generate the highest valued, owner occupied, single-family home. Owner occupancy restrictions will be documented in the development agreement and secured with a restrictive covenant recorded against the property. The occupancy requirement only applies to the first buyer and lasts for a period of two (2) years. A full legal description relating to this requirement is available upon request. 4. No preferred home style has been determined for the lot, though two-story and rambler designs have commanded the highest prices when compared to other home styles such as split entry. Preference will be given to proposals with the most finished square footage that include high quality exterior materials and upgraded interior amenities. Previously approved plans are available upon request. 5. After proposals have been received, city staff will review and recommend a preferred builder/design at the next regularly scheduled EDA meeting. Within one (1) week of approval by the EDA, the selected builder will enter into a purchase and development agreement that 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 will be required to submit a $2,000 nonrefundable earnest money deposit. Closing on the purchase of the lot must take place within 60 days of final EDA approval. The buyer will be responsible for paying the following costs associated with the purchase: x Preparation and issuance of the title commitment. x The cost of the owner’s policy or lender’s policy of title insurance (if any), sales tax (if any) resulting from the closing, the fees required for recording the deed, the purchase and redevelopment agreement, the assessment agreement and restrictive covenants, and all customary closing fees charged by the title company or other closing agent, if any, utilized to close the transaction contemplated by this agreement (paid at closing). 6. Construction of the new home must be completed within one (1) year of closing on the purchase of the lot. City of New Hope, Minnesota Specifications 1. Utilities a. All utility service lines shall be underground. Utilities may install necessary facilities such as pedestals or boxes in the street right-of-way or utility and drainage easements. b. The builder shall be responsible for any expenses associated with connecting the house to private utilities. c. Municipal water is available into the lot on the west side of the property and the location of the service is marked onsite. The EDA coordinated installation of a new curb stop box in conjunction with demolition 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 is marked onsite. The EDA coordinated lining of the existing service from the termination point all the way to the main line in conjunction with demolition of the home. 2. Building Standards and Design Guidelines a. All site improvements shall comply with the New Hope City Code. b. The house shall have at least three (3) finished bedrooms and two (2) finished bathrooms. c. The house shall have an attached garage that will accommodate a minimum of two (2) vehicles. Three (3) stall garages are preferred. d. The design should emphasize the front door as the focal point for the front of the house. A large and usable front porch is desired. Garage door dominance in design should be minimized as much as possible. Front door and garage door designs with windows are preferred. e. If an above-grade patio door is included, the inclusion of a deck is preferred. f. Equipment such as air-conditioning cooling structures or condensers that generate noise shall not be located within the front yard, side yard setback, or drainage and utility easement. g. 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. City of New Hope, Minnesota Specifications (continued) h. Exterior materials (siding, soffit, doors, and windows) shall be low maintenance. The use of brick or stone accents and incorporation of address numbers into the brick or stone 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. i.The driveway for the new home must be completely new and fully paved from the street to the garage.Driveways are not allowed within three (3) feet of any property line abutting another property and may not be placed above sewer lines or curb stop boxes. The maximum driveway/curb cut width at the property line is 24 feet for a two-car garage and 28 feet for a three-car garage. If the existing curb cut will not be utilized for accessing the new driveway it must be replaced with new curbing. New curb cuts and curbing must meet requirements of the City Code and must be approved by the Public Works Department. See attached specifications for the replacement of curbing and driveway installation (STR-10A and STR-30). Contact the Public Works Department to inspect curbing forms before pouring the curb. 3. Landscaping a. The lot shall be landscaped to be aesthetically pleasing in all seasons. Landforms and plant materials shall be used to define the site and blend neatly with adjoining properties. 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 one (1) large-species deciduous shade tree shall be planted in the side or rear yard. Trees should be a minimum of two (2) inches in diameter. A list of prohibited trees is attached. c. Foundation plantings with landscaping rock or wood chips and edging around the foundation of the home are preferred. City of New Hope, Minnesota Specifications (continued) 4. Setbacks Front Yard (west) Rear Yard (east) Interior Side Yard Attached Garage (north or south) Interior Side Yard House (north or south) 25’25’5’10’ 5. Builder Selection Criteria a. Builder must be licensed as a Residential Building Contractor in Minnesota. b. Builder shall provide the addresses of three (3) houses they have built in Minnesota within the last five (5) years, or evidence of qualification acceptable to the EDA. c. Builder must be capable of completing the house within one (1) year of closing on the purchase of the lot. 6. Required Attachments by Builder x Upgrade checklist (attached). x Site plan showing the layout of the home on the lot. Include dimensions and setbacks. x Floor plans with dimensions. Clearly indicate square footages of each floor. x List overall square footage. x List total finished square footage. x Elevations specifying types of exterior materials (color elevations preferred). x Description of the interior trim package, including flooring. x Estimated sale price of the home. x Pictures of similar homes (if available). Attachments x Recent home sales x Previous scattered site projects x Upgrade checklist x Location map x Sample lot layout x Driveway and curbing specifications (STR-10A and STR-30) x Prohibited tree list City of New Hope, Minnesota Recent Home Sales The following homes in New Hope sold for more than $440,000 since January 1, 2021. Address Price Date Finished SF Beds Baths Year Built 8809 35th Ave N $655,000 9/10/21 3,065 4 4 2006 8057 55th Ln N $555,000 9/7/21 3,307 5 4 2016 8045 55th Ln N $550,000 10/7/21 3,787 5 4 2016 5507 Wisconsin Ave N $540,000 8/6/21 3,501 4 4 2016 7328 51st Ave N $531,217 1/19/22 2,434 3 3 2021 8028 55th Ln N $530,000 9/24/21 2,695 4 3 2016 7320 51st Ave N $484,922 3/24/21 2,208 3 3 2021 7319 51st Ave N $479,900 12/29/21 2,339 3 3 2021 7327 51st Ave N $460,000 1/10/21 2,339 3 3 2021 9101 36th Ave N $460,000 10/13/21 3,564 3 4 2004 7405 51st Ave N $456,861 3/26/21 2,029 3 3 2021 3517 Decatur Ct N $456,000 10/29/21 2,269 4 4 1995 7422 51st Ave N $453,892 10/16/20 2,423 3 3 2021 7116 51st Ave N $451,557 12/10/21 2,354 3 3 2021 7406 51st Ave N $450,755 4/24/21 2,284 3 3 2021 7201 51st Ave N $446,984 11/25/20 2,354 3 3 2021 7312 51st Ave N $443,607 11/30/21 2,306 3 3 2021 7100 51st Ave N $442,331 10/12/21 2,306 3 3 2021 7226 51st Ave N $441,505 11/19/21 2,313 3 3 2021 7202 51st Ave N $441,261 6/24/21 2,306 3 3 2021 7413 51st Ave N $440,000 2/26/21 2,029 3 3 2021 8024 55th Ln N $440,000 1/29/21 2,340 4 3 2016 City of New Hope, Minnesota Previous Scattered Site Projects The following are the homes built through the city’s scattered site housing program with the highest sales prices. Address Price Date Finished SF Bed/Bath Builder 5213 Pennsylvania Avenue North $485,000 Estimated TBD 2,747 4/3 Donnay Homes 4637 Aquila Avenue North $445,000 Estimated TBD 2,537 5/3 Great Buy Homes 4215 Louisiana Avenue North $430,650 7/2021 2,537 5/3 Great Buy Homes 3856 Maryland Avenue North $413,921 10/2019 3,201 5/4 Donnay Homes 5201 Oregon Avenue North $408,320 4/2020 2,805 4/4 Novak-Fleck 5355 Oregon Avenue North $389,921 11/2020 2,327 5/3 Great Buy Homes 5353 Oregon Avenue North $385,750 3/2021 2,648 5/3 Great Buy Homes 4415 Nevada Avenue North $382,875 10/2017 2,329 4/3 Regal Homes 3751 Louisiana Avenue North $380,000 6/2018 2,326 4/3 Regal Homes 4417 Nevada Avenue North $363,869 $410,000 5/2017 11/2020 2,329 4/3 Regal Homes City of New Hope, Minnesota Upgrade Checklist Please indicate which of the following upgrades are included as part of your proposal. Bathrooms Double sink Granite/quartz countertops Soaking tub Tiled baths/showers Tiled floor Bedrooms Ceiling fans Master bathroom Walk-in closet Exterior Address numbers built into façade Brick or stone façade/accents Concrete driveway Deck Decorative shutters Finished garage Front porch Front door with sidelights Front door with windows Garage door made of wood/wood composite Garage door with windows Gutters Landscaping/plantings other than required trees Landscaping rock or wood chips and edging around foundation Patio Stone pillars Underground irrigation system (required) General Finished basement Finished laundry room Fireplace Heated floors Home office (room not classified as bedroom) Recessed lighting Smooth or knock-down ceilings Solid core interior doors Solid wood interior molding/trim Three-stall garage Vaulted ceilings Wood flooring Kitchen Backsplash/tile on walls Center island Custom cabinets Granite/quartz countertops Stainless steel appliances Other ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ 530653065306 Rhode Island Ave N ZͲϭ͕^ŝŶŐůĞͲĨĂŵŝůLJƌĞƐŝĚĞŶƟĂů 5306 Rhode Island Ave NZͲϭ͕^ŝŶŐůĞͲĨĂŵŝůLJƌĞƐŝĚĞŶƟĂů163.44’75’WŽƚĞŶƟĂůHome & GarageWŽƚĞŶƟĂůDrivewayBuildableArea PLATE NO. LAST REVISION: STR-10A AUG. 2019RESIDENTIAL DRIVEWAY WITH APRON CITY OF NEW HOPE, MN 18"MIN18"MINREMOVE EXISTING CURB DAMAGE (MINIMUM ONE PANEL)REMOVE EXISTING CONCRETE DRIVEWAY SURFACE EXISTING DRIVEWAY BACK OF CURBEXISTING CONCRETE CURB & GUTTER ȭ EXISTING ROADWAY REMOVE EXISTING BITUMINOUS D428 CONCRETE CURB & GUTTERSAWCUT FELT EXPANSION JOINT SAWCUT EXISTING DRIVEWAY 6" CONCRETE DRIVEWAYBITUMINOUS PATCH SECTIONEXISTING BITUMINOUS LC ONE PANEL MIMIMUM 2'2' PLATE NO. LAST REVISION: STR-30 DEC 2017 CONCRETE CURB REPLACEMENT DRIVE LOCATION (CONCRETE D/W APRON) CITY OF NEW HOPE, MN 6" CLASS 5 AGGREGATE BASE. PLAN 18'' MIN. Trees provide value from an environmental and property value standpoint. They aid in reducing storm water runoff, soil erosion, and water pollution. Other environmental benefits include the improvement of air quality and conservation of energy. Trees have also been shown to increase property values and can help beautify neighborhoods. Tree Preservation Policy The city of New Hope has a Tree Preservation Policy in place, intended to protect and preserve trees when development takes place. The policy applies to commercial, industrial, multiple family, and institutional land use development projects. The city’s Tree Preservation Policy requires that significant, preferred trees be replaced at 1 inch to 0.5 inch ratio. The ratio refers to the diameter of the tree in inches (rounding up) and the total number of diameter inches required for replacement. A Significant Tree is considered a healthy tree measuring a minimum of six inches in diameter measured five (5) feet above the existing, natural grade surrounding the tree for deciduous trees for deciduous trees, or a minimum of twelve feet in height for coniferous trees. A Preferred Tree is considered any tree that does not appear on the city’s Prohibited Tree list, as shown below. Prohibited Trees The city’s Prohibited Tree list includes the following species: x Amur Maple x Black Locust x Boxelder x Ginko (female only) x Green, White, or Black Ash (fraxinus species) x Mulberry x Non-disease resistant elm species x Nonhybrid cottonwood species x Russian Olive Buckthorn x Siberian or Chinese Elm Boulevard Tree Replacement Policy The city of New Hope has also adopted a policy to help homeowners to replace boulevard trees that have been lost to storms, disease, or other causes. The city has a preferred tree list to address tree selection considerations including hardiness, mature size, salt tolerance, pest and disease resistance, rooting habits, maintenance requirements, and soil compatibility. For more information, call 763-592-6763. City of New Hope Forestry Department 5500 International Pkwy • New Hope MN 55428 • Phone: 763-592-6777 • Fax: 763-592-6776 • ci.new-hope.mn.us Prohibited Tree List G:\CommDev\Informational Forms for CD and Public\Originals\Prohibited Tree List.docx (07-15) 17 Exhibit F Buyer’s Proposed Plans Macalester Elevation B See attached. P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11447 5306 Rhode Island Ave. N\Purchase and Redevelopment Agreement 5306 Rhode Island Ave N.docx City of New Hope, Minnesota Proposal Form Property Owner: City of New Hope Economic Development Authority (EDA) Property Address: 5306 Rhode Island Avenue North, New Hope, MN 55428 Property Identification Number:08-118-21-22-0037 Minimum Lot Price: This lot is being offered at a minimum base price of $80,000. The EDA will consider higher offers for the lot; however, submitting a higher offer does not guarantee selection of a proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase this lot for $____________________ ($80,000 minimum) and build a new single-family house in accordance with the RFP guidelines. If a builder’s proposal is accepted by the EDA, the builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name: _______________________________________________________________ License Number:________________________________________________________________ Address:___________________________________ ___________________________________ Telephone:______________________________________________________________________ Email:____________________________________________________________________________ Name & Title:____________________________________________________________________ Signature: ______________________________________Date: ____________________ Authentisign ID: 4955886D-DABC-EC11-997E-501AC586CB79 Fieldstone family homeS, Inc.    www.fieldstonefamilyhomes.com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ieldstone family homeS, Inc.    www.fieldstonefamilyhomes.com 952.469.8800  MN LIC BC631164          &'% )'#"/'0  &'% )'#" #'(%&%=HG2@@@=HG2@@@ %#' %=EG@2@@@3=FA@2@@@" +%&,"&"+! =EGE2@@@3=FAE2@@@" +%&,"&"+! 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A@5 ",!&"+$&  Fieldstone family homeS, Inc.    www.fieldstonefamilyhomes.com 952.469.8800  MN LIC BC631164           %&&#!$ '#"% 4;;7%&'+%),%)%, 88647B@BB 863#(%', #%", 88685B@BB 449:(&(#(%',#$, 886:<B@BB  25'-0"25'-0"5'-0"10'-0"25'-0"=SETBACK=LOT LINE10'-0"18'-0"75'-0"163'-0"161'-0"45'-0"31'-0"FRONTRHODE ISLAND AVE N.GARAGE SETBACK SIDEHOUSE SETBACK SIDEREARFinal Blueprint ____/____/___________________All changes after abovedate will be doneaccording to F.F.H.Change Order PolicyHomeowner SignatureFIELDSTONE FAMILY HOMES INC.Lic. # BC631164Intellectual property of Fieldstone Family Homes, Inc.© 2008. ALL RIGHTSRESERVED. These plan drawings, including but not limited to, all text, designs,renditions, floor plans, along with the selection and arrangement of thereof, areoriginal copyrighted materials owned by Fieldstone Family Homes, Inc. Thesematerials are protected by federal law against unauthorized copying, orreproduction by unauthorized persons and entities.DEVELOPMENTLOT BLKNEW HOPE MACALASTER1.2Scale: 3/32" = 1'-0"Fin Sq Ft: 2259Agent:SITE PLAN14-22APRILPlan: MACALESTERFoundation: 1657Finished: 2259Unfinished: 894(OHYDWLRQ% FRONT ELEVATIONSCALE: 1/8"=1'-0"812812REAR ELEVATIONSCALE: 1/8"=1'-0"812RIGHT ELEVATIONSCALE: 1/8"=1'-0"6126121'-6"LEFT ELEVATIONSCALE: 1/8"=1'-0"6124121'-6"Final Blueprint ____/____/___________________All changes after abovedate will be doneaccording to F.F.H.Change Order PolicyHomeowner SignatureFIELDSTONE FAMILY HOMES INC.Lic. # BC631164Intellectual property of Fieldstone Family Homes, Inc.© 2008. ALL RIGHTSRESERVED. These plan drawings, including but not limited to, all text, designs,renditions, floor plans, along with the selection and arrangement of thereof, areoriginal copyrighted materials owned by Fieldstone Family Homes, Inc. Thesematerials are protected by federal law against unauthorized copying, orreproduction by unauthorized persons and entities.DEVELOPMENTLOT BLKNEW HOPE MACALASTER1Scale: 1/8" = 1'-0"Fin Sq Ft: 2259Agent:ELEVATIONS14-22APRILPlan: MACALESTERFoundation: 1657Finished: 2259Unfinished: 894(OHYDWLRQ% UNFINISHEDFAMILY ROOM36'-0"34'-0"10'-0"46'-0"22'-0"20'-0"42'-0"18'-6"9'-6"28'-0"18'-0"46'-0"6'-0"8'-0"42'-0" R.I.BATHUNFINISHEDBEDROOMUNFINISHEDMECHANICAL/STORAGE2'-0"20'-6" X 15'-0"13'-0" X 13'-0"Final Blueprint ____/____/___________________All changes after abovedate will be doneaccording to F.F.H.Change Order PolicyHomeowner SignatureFIELDSTONE FAMILY HOMES INC.Lic. # BC631164Intellectual property of Fieldstone Family Homes, Inc.© 2008. ALL RIGHTSRESERVED. These plan drawings, including but not limited to, all text, designs,renditions, floor plans, along with the selection and arrangement of thereof, areoriginal copyrighted materials owned by Fieldstone Family Homes, Inc. Thesematerials are protected by federal law against unauthorized copying, orreproduction by unauthorized persons and entities.DEVELOPMENTLOT BLKNEW HOPE MACALASTER3Scale: 1/4" = 1'-0"Fin Sq Ft: 63Agent:LOWER LEVEL14-22APRILPlan: MACALESTERFoundation: 1657Finished: 2259Unfinished: 894 GREAT ROOMDINETTEKITCHENSTUDYMUDROOMFOYERBATH1'-0"36'-0"38'-0"34'-0"9'-0"47'-0"1'-0"22'-0"20'-0"42'-0"28'-0"18'-0"46'-0"6'-0"42'-0"2'-0"10X12 DECK16'-6" X 14'-6"12'-6" X 10'-0"14'-0" X 10'-6"10'-0" X 10'-6"Final Blueprint ____/____/___________________All changes after abovedate will be doneaccording to F.F.H.Change Order PolicyHomeowner SignatureFIELDSTONE FAMILY HOMES INC.Lic. # BC631164Intellectual property of Fieldstone Family Homes, Inc.© 2008. ALL RIGHTSRESERVED. These plan drawings, including but not limited to, all text, designs,renditions, floor plans, along with the selection and arrangement of thereof, areoriginal copyrighted materials owned by Fieldstone Family Homes, Inc. Thesematerials are protected by federal law against unauthorized copying, orreproduction by unauthorized persons and entities.DEVELOPMENTLOT BLKNEW HOPE MACALASTER4Scale: 1/4" = 1'-0"Fin Sq Ft: 975Agent:MAIN LEVEL14-22APRILPlan: MACALESTERFoundation: 1657Finished: 2259Unfinished: 894 BEDROOMOWNERSBEDROOMLAUNDRYBATHBEDROOMBEDROOMWICBATH36'-0"37'-0"14'-8"8'-8"10'-8"34'-0"5'-6"12'-0"1'-0"12'-0"36'-0"6'-6"33'-0"34'-0"WICWICWIC1'-0"13'-0" X 14'-6" 12'-0" X 11'-6"12'-0" X 10'-6"11'-0" X 15'-0"Final Blueprint ____/____/___________________All changes after abovedate will be doneaccording to F.F.H.Change Order PolicyHomeowner SignatureFIELDSTONE FAMILY HOMES INC.Lic. # BC631164Intellectual property of Fieldstone Family Homes, Inc.© 2008. ALL RIGHTSRESERVED. These plan drawings, including but not limited to, all text, designs,renditions, floor plans, along with the selection and arrangement of thereof, areoriginal copyrighted materials owned by Fieldstone Family Homes, Inc. Thesematerials are protected by federal law against unauthorized copying, orreproduction by unauthorized persons and entities.DEVELOPMENTLOT BLKNEW HOPE MACALASTER5Scale: 1/4" = 1'-0"Fin Sq Ft: 1221Agent:UPPER LEVEL14-22APRILPlan: MACALESTERFoundation: 1657Finished: 2259Unfinished: 894 25'-0"25'-0"5'-0"10'-0"25'-0"=SETBACK=LOT LINE10'-0"18'-0"75'-0"163'-0"161'-0"45'-0"31'-0"FRONTRHODE ISLAND AVE N.GARAGE SETBACK SIDEHOUSE SETBACK SIDEREARFinal Blueprint ____/____/___________________All changes after abovedate will be doneaccording to F.F.H.Change Order PolicyHomeowner SignatureFIELDSTONE FAMILY HOMES INC.Lic. # BC631164Intellectual property of Fieldstone Family Homes, Inc.© 2008. ALL RIGHTSRESERVED. These plan drawings, including but not limited to, all text, designs,renditions, floor plans, along with the selection and arrangement of thereof, areoriginal copyrighted materials owned by Fieldstone Family Homes, Inc. Thesematerials are protected by federal law against unauthorized copying, orreproduction by unauthorized persons and entities.DEVELOPMENTLOT BLKNH ORIGINAL MACALASTER1.2Scale: 3/32" = 1'-0"Fin Sq Ft: 2193Agent:SITE PLAN14-22APRILPlan: MACALESTERFoundation: 1657Finished: 2193Unfinished: 894(OHYDWLRQ$ FRONT ELEVATIONSCALE: 1/8"=1'-0"812812REAR ELEVATIONSCALE: 1/8"=1'-0"812RIGHT ELEVATIONSCALE: 1/8"=1'-0"612612LEFT ELEVATIONSCALE: 1/8"=1'-0"612412Final Blueprint ____/____/___________________All changes after abovedate will be doneaccording to F.F.H.Change Order PolicyHomeowner SignatureFIELDSTONE FAMILY HOMES INC.Lic. # BC631164Intellectual property of Fieldstone Family Homes, Inc.© 2008. ALL RIGHTSRESERVED. These plan drawings, including but not limited to, all text, designs,renditions, floor plans, along with the selection and arrangement of thereof, areoriginal copyrighted materials owned by Fieldstone Family Homes, Inc. Thesematerials are protected by federal law against unauthorized copying, orreproduction by unauthorized persons and entities.DEVELOPMENTLOT BLKNH ORIGINAL MACALASTER1Scale: 1/8" = 1'-0"Fin Sq Ft: 2193Agent:ELEVATIONS14-22APRILPlan: MACALESTERFoundation: 1657Finished: 2193Unfinished: 894(OHYDWLRQ$ UNFINISHEDFAMILY ROOM36'-0"34'-0"10'-0"46'-0"22'-0"20'-0"42'-0"10'-0"18'-0"28'-0"18'-0"46'-0"6'-0"8'-0"42'-0" R.I.BATHUNFINISHEDBEDROOMUNFINISHEDMECHANICAL/STORAGE2'-0"20'-6" X 15'-0"13'-0" X 13'-0"1'-0"Final Blueprint ____/____/___________________All changes after abovedate will be doneaccording to F.F.H.Change Order PolicyHomeowner SignatureFIELDSTONE FAMILY HOMES INC.Lic. # BC631164Intellectual property of Fieldstone Family Homes, Inc.© 2008. ALL RIGHTSRESERVED. These plan drawings, including but not limited to, all text, designs,renditions, floor plans, along with the selection and arrangement of thereof, areoriginal copyrighted materials owned by Fieldstone Family Homes, Inc. Thesematerials are protected by federal law against unauthorized copying, orreproduction by unauthorized persons and entities.DEVELOPMENTLOT BLKNH ORIGINAL MACALASTER3Scale: 1/4" = 1'-0"Fin Sq Ft: 63Agent:LOWER LEVEL14-22APRILPlan: MACALESTERFoundation: 1657Finished: 2193Unfinished: 894 GREAT ROOMDINETTEKITCHENSTUDYMUDROOMFOYERBATH1'-0"36'-0"38'-0"34'-0"9'-0"47'-0"1'-0"22'-0"20'-0"42'-0"28'-0"18'-0"46'-0"6'-0"42'-0"2'-0"10X12 DECK16'-6" X 14'-6"12'-6" X 10'-0"14'-0" X 10'-6"10'-0" X 10'-6"Final Blueprint ____/____/___________________All changes after abovedate will be doneaccording to F.F.H.Change Order PolicyHomeowner SignatureFIELDSTONE FAMILY HOMES INC.Lic. # BC631164Intellectual property of Fieldstone Family Homes, Inc.© 2008. ALL RIGHTSRESERVED. These plan drawings, including but not limited to, all text, designs,renditions, floor plans, along with the selection and arrangement of thereof, areoriginal copyrighted materials owned by Fieldstone Family Homes, Inc. Thesematerials are protected by federal law against unauthorized copying, orreproduction by unauthorized persons and entities.DEVELOPMENTLOT BLKNH ORIGINAL MACALASTER4Scale: 1/4" = 1'-0"Fin Sq Ft: 975Agent:MAIN LEVEL14-22APRILPlan: MACALESTERFoundation: 1657Finished: 2193Unfinished: 894 BEDROOMOWNERSBEDROOMLAUNDRYBATHBEDROOM36'-0"37'-0"14'-8"8'-8"10'-8"34'-0"1'-0"WICWIC13'-0" X 14'-6" 12'-0" X 11'-6"12'-0" X 10'-6"BEDROOM12'-0" X 11'-6"BATH6'-0"12'-0"18'-0"36'-0"30'-0"3'-0"1'-0"34'-0"Final Blueprint ____/____/___________________All changes after abovedate will be doneaccording to F.F.H.Change Order PolicyHomeowner SignatureFIELDSTONE FAMILY HOMES INC.Lic. # BC631164Intellectual property of Fieldstone Family Homes, Inc.© 2008. ALL RIGHTSRESERVED. These plan drawings, including but not limited to, all text, designs,renditions, floor plans, along with the selection and arrangement of thereof, areoriginal copyrighted materials owned by Fieldstone Family Homes, Inc. Thesematerials are protected by federal law against unauthorized copying, orreproduction by unauthorized persons and entities.DEVELOPMENTLOT BLKNH ORIGINAL MACALASTER5Scale: 1/4" = 1'-0"Fin Sq Ft: 1155Agent:UPPER LEVEL14-22APRILPlan: MACALESTERFoundation: 1657Finished: 2193Unfinished: 894 Quality Inclusions The following are base quality features included in most homes. Floor plans and products may be customized to meet the taste and budget of each homeowner. Your Fieldstone Real Estate Specialist can answer any questions you may have. CConstructionn Featuress x 9’ main level ceilings on many 2-story and rambler designs (per plan) x Exterior stone accents with address stone per plan x 30-Year Architectural Shingles x Concrete foundation insulated and waterproofed on the exterior with a 10 year warranty x 4” perforated foundation drain with 3/4” gravel and filter around perimeter of footing x Lower level foundation drainage system with sump pump and alarm x Full basement with two-pane egress window in concrete window well and drain tile x Connection to available utilities: sewer, water, gas, electric, telephone and cable; allowance per home site x 2 x 6 exterior walls with quality fiberglass insulation and sealed poly barrier; all penetrations spray foamed to MN Green Path Standards x Choice of concrete or cedar front porch (per plan) x Asphalt driveway per allowance x Basic sod and tree allowance per Purchase Agreement and Specs x All interior and exterior wall plates sealed down x All subfloor areas; nailed, glued and screwed x Cantilevered floors sealed above supporting walls x Energy heel roof trusses for added insulation value x Deck ledger flashed and bolted to rim (per plan) x High quality Vinyl siding (.042) with aluminum soffit and fascia in your choice of colors x Outside venting and gas or electric hookup for dryer x Code required weatherproof electrical outlets at exterior locations of your choice x 2 frost-free exterior water spigots at location of your choice x Security dead bolt locks on all exterior steel doors x Complete house wrap wind wash barrier x 2 or 3 car garage sheet rocked and insulated to fire code (per plan) x Smoke and Carbon monoxide detectors; hardwired with battery backups x Water softener loop/rough in x Rough-in plumbing for future bathroom in lower level (per plan) x Electrical ground-fault and ARC-fault outlets x Erosion control used during construction x Patio slabs, walkways and driveways sloped away from Home x Garage floor sloped to main vehicle entry for drainage x Site Construction Manager for scheduling and site inspections throughout construction Energyy Efficientt x MN Green Path Certified Builder (optional per plan) x 3rd party energy testing and inspections with HERS score rating x State of Minnesota Energy Code Compliant x 92% sealed combustion natural gas furnace x All ductwork sealed for maximum efficiency x 13 seer central air conditioner x Whole Home mechanical air exchanger x Home ventilated mechanically for 48 hours prior to occupancy x Gas power vented water heater sized to code x All lavatory low-flow faucets and 1.6 gpf water closets x High Quality fiberglass insulation with R total values of 50 in the ceiling, 21 in the walls and 44 in any vaulted areas with 3rd Party inspection x Double pane low-E-insulated argon gas filled vinyl windows, .30 or better u–value to meet or exceed Energy codes x All window openings spray-foam insulated and weather taped x Steel insulated entry and garage doors x Poly vapor barrier under basement floor with passive radon mitigation system x Exterior building envelope is sealed using gasket or acoustical sealant at all intersections/openings to minimize air infiltration x Sealed electrical openings on exterior walls and ceilings x All Rim joists spray foam insulated for air tight efficiency x Digital programmable thermostat Fieldstonefamilyhomes.com 952.469.8800 MN Lic: BC631164 REV FEB 2022 your Home… your way ...from our Family to yours MN LIC: BC631164 xResponsible disposal and recycling program for all construction waste xRe-usable footing and foundation forms Detailed Interior xKnock-down textured ceilings (per specs) x2 coats of quality flat latex paint in a wide array of selections; choose up to 3 colors used interchangeably xDecorative niche or ledge in location of your choice (per plan prior to construction) xYour choice of high quality vinyl and carpet flooring xDesigner lighting package for all finished areas by Allowance per specs xWire closet shelving layout designed pre- construction xSolid wood 2-panel, or solid core white 3-panel doors, with decorative knobs in your choice of finish xWood Poplar, Pre-finished stained millwork in Princeton or Flat profile xWood skirt boards in finished stairways xHalf walls on staircase with wood caps xHardwired door chime x4 phone or cable jacks and 2 ceiling fan pre-wires in location of your choice xOutlets in the ceiling of the garage for a future garage door opener xDecorative front door handle set with deadbolt xWood extension jambs and sill on windows in all finished areas Appealing Kitchens xKitchen appliance allowance of $3,000 (black, stainless or white) xWater line for refrigerator xMaple or Birch cabinetry with flat panel or shaker doors, rollout shelves, crown molding with decorative hardware and custom layout assistance xKitchen drawer stack cabinet in your choice of location with final cabinet layout xCustom fit laminate countertops with 4” backsplash in wide variety of color choices xStainless steel double bowl kitchen sink with chrome or stainless faucet and sprayer xYour choice of high quality resilient vinyl flooring xProfessional connections and installation of allowance provided kitchen appliances (using Builder’s preferred Vendors) xCenter island or walk-in pantry (per plan) Brilliant Bathrooms xYour choice of single-lever chrome or brushed nickel faucets x“Tall vanities” in bathrooms of your choice (per specs) xYour choice of solid surface bathroom countertops with integrated back splash & sink xYour choice of high quality resilient vinyl flooring xFiberglass tub and shower units xTowel bar and paper holder accessories, in location of your choice x36” tall vanity mirrors xGlass shower door per specifications xExterior vented fans in all bathrooms Customer Satisfaction xExperienced team of new construction sales professionals to guide you through the process from concept to completion and beyond xFull access to company owners at any time before, during & after construction xProfessional builder/designer assistance to detail floor plans and selections pre-construction xAccess to BuilderTrend construction management app to follow your home from start to finish xWalk-thru appointments during construction xProfessional construction cleaning of your Home and windows prior to move-in xClosing day homeowner orientation appointment xOptional 30-day post-closing inspection x1 year home warranty walk-thru inspection xBuilder personally monitors 3rd party customer feedback surveys xBetter Business Bureau Accredited Business Outstanding Warranties x1 year material and workmanship warranty x2 year limited mechanical system warranty x10 year limited structural warranty x3rd party warranty assurance included with every home for 1 year Fieldstone Family Homes reserves the right to change, modify, delete or add options at anytime without notice. All info is deemed reliable but not guaranteed. See a Sales Representative for base inclusions per specific plans. City of New Hope, Minnesota Upgrade Checklist Please indicate which of the following upgrades are included as part of your proposal. Bathrooms Double sink Granite/quartz countertops Soaking tub Tiled baths/showers Tiled floor Bedrooms Ceiling fans Master bathroom Walk-in closet Exterior Address numbers built into façade Brick or stone façade/accents Concrete driveway Deck Decorative shutters Finished garage Front porch Front door with sidelights Front door with windows Garage door made of wood/wood composite Garage door with windows Gutters Landscaping/plantings other than required trees Landscaping rock or wood chips and edging around foundation Patio Stone pillars Underground irrigation system (required) Authentisign ID: 4955886D-DABC-EC11-997E-501AC586CB79 General Finished basement Finished laundry room Fireplace Heated floors Home office (room not classified as bedroom) Recessed lighting Smooth or knock-down ceilings Solid core interior doors Solid wood interior molding/trim Three-stall garage Vaulted ceilings Wood flooring Kitchen Backsplash/tile on walls Center island Custom cabinets Granite/quartz countertops Stainless steel appliances Other ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ ___________________________________________________________________________________ Authentisign ID: 4955886D-DABC-EC11-997E-501AC586CB79 Fieldstone family homeS, Inc. www.fieldstonefamilyhomes.com 952.469.8800 MN LIC BC631164                                                                             $#" $! Address:530 Red Oak Court Blower Door:922 Jordan, MN 55352 Air Changes/Hour:1.65 Builder:Fieldstone Family Homes Total Duct Leakage: License:20631164 Continuous Ventilation:83.86 Inspection Date:2/24/2022 Total Ventilation:167.72 Conditioned Volume:33461 Insulation Square Footage:4636 Location R-Value Type Attic 49 Loose Fill Fiberglass*Window Rim Joists 20 Spray Foam Location U-Factor SHGC Ductwork 8 Fiberglass Front 0.31 0.28 Walls 20 Fiberglass Batts Left 0.31 0.33 Foundation Wall 10 Rigid Foam Back 0.31 0.31 Crawlspace Wall Right 0.31 0.31 Crawlspace Slab Concrete Slab Using the most prevalent R-Value, U-Factor & SHGC Type: Model: Efficiency: Manufacturer: Input Rating: Make Up Air Radon Mitigation Model B160H65RS Type Type Passive Type Balanced Location Location Attic Location Mech Room Size Exhaust 127 CFM Supply 127 CFM *Data Provided By Builder ACH Calculation: (CFM@50PA X 60)/Volume = ACH@50 PA **Data not available at time of printing Total Duct Leakage Allowable: Verified By W/Furnace: Sq ft/100 X 4 W/O Furnace: Sq ft/100 X 3 Signature: 1345 Corporate Center Curve #200, Eagan, MN 55121 (651) 393 5255 Water Heating XG50T06PV42U0 Energy Efficiency Certificate Rheem Heating System ML193UH070XE36B 93 AFUE Lennox Forced Air Furnace Conventional Air Conditioner Central Air 13ACXN030 13 SEER0.7 EF Calculated Heat Gain (Btu)* Calculated Cooling Load (Btu)* 30000 Btus/hr Ventilation 66000 Btus/hr 42000 Btus/hr Calculated Heat Loss (Btu)* Lennox D o n n a y H o m e s, I n c. 9655 – 63rd Avenue North, Maple Grove, Minnesota 55369 Builder #594838, #722939 April 21, 2022 Re: 5306 Rhode Island Ave North, New Hope, MN. Enclosed please find our submittal for the Infill Project at the above address. x Site Plan x Landscape Plan x Building Plans x Standard Feature Sheet x Flooring Specifications x Energy Efficiency Documentation House Details: x Living Area Above Ground = 1,652sft x Gross Finished Space = 2,430sft x 4 bedrooms and 3 bathrooms x See Standard Features Sheet for Finish Details. x See attached Flooring Specs Here’s a graphic of a similar homes based on this same plan. View of the Kitchen View of the Kitchen thru to the Family Room View of the Master Bathroom Homes closed by Donnay in 2021 6411 Alvarado Lane N 7/29/2021 6419 Alvarado Lane N 11/9/2021 6431 Alvarado Lane N 6/14/2021 6408 Alvarado Lane N 4/8/2021 6765 98th Street South 2/1/2021 6771 98th Street South 4/22/2021 6767 98th Street South 3/31/2021 6763 98th Street South 3/12/2021 6720 99th Street South 4/5/2021 6732 99th Street South 4/26/2021 6740 99th Street South 4/20/2021 1380 Meadow Lane S 12/17/2021 1329 Meadow Lane S 4/1/2021 1364 Meadow Lane S 4/6/2021 1308 Meadow Lane S 4/5/2021 1245 Meadow Lane S 6/30/2021 1233 Meadow Lane S 10/1/2021 1260 Meadow Lane S 12/22/2021 1236 Meadow Lane S 6/15/2021 5841 FAIRFAX AVE 7/15/2021 6021 Saxony Road 5/3/2021 7555 FAWN HILL RD 2/9/2021 18050 HONEYSUCKLE 5/4/2021 5138 Hankerson Ave 11/22/2021 279 Fair Circle 12/22/2021 D o n n a y H o m e s, I n c. 9655 – 63rd Avenue North, Maple Grove, Minnesota 55369 Builder #594838, #594839 www.donnayhomes.com www.tradtionsbydonnay.com About Us From Our Family to Yours. Donnay Homes is a locally-owned, premier single-family home and townhome builder that has delighted new homeowners with our quality and craftsmanship for decades. In fact, many families who had built their first home with us come back for their second and third. It’s a great testament to our standards for service. Our business philosophy is one that began with our family many years ago, we give you ‘More home for your money’. Our custom homebuilding division, Traditions by Donnay Homes, has built over 90 in-fill homes in Edina and Minneapolis. The majority of these were replacing older, deteriorated homes that were demolished. Most of these homes have sold for over $1million. Craftsmanship Long-standing partnerships with trusted subcontractors and recognized leaders in the building products industry have helped Donnay Homes maintain a reputation for consistency, timely delivery, and customer satisfaction. The fine craftsmanship and attention to detail experienced with our impressive teams ensures that every one of our homes is built to perfection! Quality Whether you choose one of our signature designs or a one- of-a-kind custom style, you can be assured of the finest quality and professionalism. Donnay’s experienced staff will work with you every step of the way to maintain our high standards of quality and to make your home-building experience exciting and memorable. More Home For Your Money! That’s what we promise and deliver to new homeowners each and every day. Sample Projects: 6408 Alvarado Lane North. Sold April 2021 for $638,900 Howell Meadows development in Maple Grove. Sold out project. Exclusive Single Family Homes from the $600’s Contact: Paul at 612-919-4085 5845 Garland Ave North. Sold October 2020 for $697,000 Dunkirk Gateway development in Plymouth. Sold out project. Exclusive Single Family Homes from the $500’s 6613 Parkwood Road, Edina. Old, deteriorated home removed New Construction ~$2m PDF created with pdfFactory Pro trial versionwww.pdffactory.com PDF created with pdfFactory Pro trial versionwww.pdffactory.com PDF created with pdfFactory Pro trial versionwww.pdffactory.com PDF created with pdfFactory Pro trial versionwww.pdffactory.com Luxury Vinyl Sheet x Flooring Thickness: 58 x FloorScore® Certified: Yes x Made In: USA x Guardian Protection: Yes x Never Yellow: Yes x Pattern Scale: Medium x Repeat Length: 36 x Repeat Width: 72 x Installation Type: Full spread, Loose lay (no glue) or Perimeter (glue only perimeter) x Warranty: 6 Year Residential View all ADURA®Max (/Residential/AduraMax/Search) Moldings (/Residential/AduraMax/Moldings) Environmental Attributes (/Residential/AduraMax/Environmental-Attributes) Installation (/Residential/AduraMax/Installation) Careand Maintenance (/Residential/AduraMax/Care-and-Maintenance) ScratchResist (/Residential/AduraMax/ScratchResist) Wa rranty (/Residential/AduraMax/Warranty) View All (/Residential/AduraMax/Search) ADURA®Max Tile (/Residential/AduraMax/Search?FilterCollections=0) ADURA®Max Plank (/Residential/AduraMax/Search?FilterCollections=1) ADURA®Max Prime (/Residential/AduraMax/Search?FilterCollections=2) (/Residential)  (/residential/signin.aspx)  (/residential/signin.aspx) € (/residential/commerce/cart.aspx) SHARE THIS FLOOR: (http://pinterest.com/pin/create/button/? url=http%3a%2f%2fwww.mannington.com%2fResidential%2fAduraMax%2fAduraMaxTile%2fTempo%2fMAR277&media=http%3a%2f%2fwww.manning %2fmedia%2fImages%2fProduct%2fAdura%2fLuxuryTile%2fAT277_Vibe_Steel%2fTempo_Graphite_AR1271_swatch%2fTempo_Steel_AR1277_swatch.j (http://twitter.com/intent/tweet? text=Check out Tempo on mannington.com.&url=http%3a%2f%2fwww.mannington.com%2fResidential%2fAduraMax%2fAduraMaxTile%2fTempo%2fMAR277) (http://www.facebook.com/sharer.php? u=http%3a%2f%2fwww.mannington.com%2fResidential%2fAduraMax%2fAduraMaxTile%2fTempo%2fMAR277&t=Tempo) Capturing all the simplicity of contemporary styling, Tempo is a uniqueluxury vinyl tile that offers a clean, linear textile visual. (/Residential)  (/residential/signin.aspx)  (/residential/signin.aspx) € (/residential/commerce/cart.aspx) 12"x24" COLOR: Steel SIZES: Add to Favorites Order a Sample (/virtualdecorator/?colorwaycode=MAR277) PRODUCT DETA ILS Product Number:MAR277 Colorway Name:Steel Sizes:12"x24" Flooring Thickness:.315"(8mm) ScratchResist™:Ye s FloorScore® Certified:Ye s True Detail Styling™:Ye s Edge Style:Micro-bevel Installation Type:Floating HydroLoc™:Ye s Wa rranty:Limited Lifetime Residential Contact Us (/Corporate/ContactUs) Claims (/Residential/Claims) Register Yo ur Floor (/Corporate/Register-Yo ur-Floor) FAQ (/Residential/FAQ) Sitemap (/Residential/Sitemap) Te rms &Conditions (http://www.manningtoncommercial.com/terms-and-conditions) Environment (/Corporate/Sustainability/Environment) Social Responsibility (/Corporate/Sustainability/SocialResponsibility) Corporate (/Corporate) Commercial (https://www.manningtoncommercial.com/) Amtico (http://www.amtico.com) Burke (http://www.burkeflooring.com) Retailer (http://www.makeitmannington.com) Become a Mannington Retailer (/Corporate/BecomeAManningtonRetailer) FINDASTORE: Enter your Zip code ©2016 Mannington Mills,Inc. All Rights Reserved. 800.356.6787(/Corporate/ContactUs) terms of use (/Residential) privacy (/Corporate/PrivacyPolicy) pattern copyright online flooring purchase (/Residential/AboutPurchasingFlooringOnline) blog (/Residential/Blog) (http://www.facebook.com/ManningtonFloors)(http://www.instagram.com/manningtonfloors)(http://www.pinterest.com/manningtonfloor)(http://twitter.com/ManningtonFloor)(http://www.flickr.com/photos/manningtonfloors(http://www.yo utube.com/user/Mannington(http://www.houzz.com/pro/manning mills) CUSTOMERSERVICE + SUSTAINABILITY + OTHERSITES + SSSttteeeeeeeeee (/Residential)  (/residential/signin.aspx)  (/residential/signin.aspx) € (/residential/commerce/cart.aspx) Page | 1 Luxury Vinyl Flooring Warranty Style Name Thickness (mm) Wear Layer Residential Warranty Waterproof Warranty Pet Warranty Commercial Warranty The New Standard II - Triumph 5.0 12 mil Lifetime Lifetime Lifetime 7 Year Italian Impressions - Triumph 5.0 22 mil Lifetime Lifetime Lifetime 10 Year Adventure II - Triumph 5.5 22 mil Lifetime Lifetime Lifetime 10 Year Bella Sera - Triumph 5.5 22 mil Lifetime Lifetime Lifetime 10 Year Lux Haus II - Triumph 6.5 22 mil Lifetime Lifetime Lifetime 10 Year Revotec - ALL 8 20 mil Lifetime Lifetime Lifetime 10 Year This limited warranty, from Engineered Floors, extends only to the original end-user and to flooring in its original installation. The Engineered Floors warranties are non-transferable. No installer, distributor or agent, or employee of Engineered Floors may alter the obligations or limitations of any Engineered Floors Warranty. The original receipt, as proof of purchase, is required. If a problem appears which is covered by these warranties, the original purchaser should contact the dealer where the product was purchased immediately and describe the problem. INSTALLATION Engineered Floors recommends that its floor coverings be professionally installed. If not, no labor costs will be considered should there be a valid claim. This warranty covers materials and reasonable labor costs (as determined by Engineered Floors, at its sole discretion) provided a professional installer was used and paid when the Luxury Vinyl Flooring (LVF) was originally installed, and provided further that such LVF was installed in accordance with the installation instructions. Workmanship errors should be addressed to the contractor who installed the floor. Your Engineered Floors LVF should be professionally installed by contractors who have demonstrated expertise in installing the floor covering. Engineered Floors does not warrant installers’ workmanship. The LVF must be installed correctly over a properly prepared sub-floor and regularly and properly maintained. The consumer and installer are responsible for final inspection of the product before permanent installation. Engineered Floors is not responsible for labor costs to replace visibly defective product after installation. REPLACEMENT/REPAIRS Engineered Floors reserves the right to repair any LVF or use its own installer for replacement LVF product. If Engineered Floors repairs or replaces a LVF product as a result of a warranty claim, the consumer is required to remove, store and re-install all fixtures, furnishings and any items placed over the affected areas subsequent to the original installation. Engineered Floors will, at its discretion, repair or replace the defective product according to the proration chart listed in this document. The replacement product is warranted for the remainder of the original warranty period. These costs are the consumer's responsibility. Engineered Floors recommends that appropriate replacement stock of the LVF product be kept if needed for future product repair or replacement. COVERAGE This limited warranty covers manufacturing defects and loss of original pattern and color due to stain, fade or wear, provided that the LVF covered by this limited warranty is (i) installed and maintained according to the LVF Installation Instructions and (ii) subject only to normal residential, light commercial use or commercial, as further detailed for any individual warranties for a specific LVF product. Residential warranties apply to products installed in non-commercial, owner-occupied, residential premises (single-family homes, condominiums, town houses, etc.). Residential rental units fall under the commercial or light commercial warranty only. Light commercial implies light traffic and residential cleaning practices. Commercial implies high foot traffic and well as routine and scheduled maintenance protocols. MANUFACTURING DEFECTS WARRANTY Engineered Floors warrants to the original purchaser of its products that, if properly installed, the products shall remain free of manufacturing defects for the indicated period of time, starting from the date of original purchase, as long as the original pu rchaser owns the property. The product will be manufactured according to the floor covering industry’s standards and tolerances in quality variation. Engineered Floors will replace or repair defective materials including reasonable labor costs during the first five (5) years from the date of the original purchase. If the owner hires a third party to install the product, the owner is responsible for that party’s Page | 2 judgment. Material installed with obvious defects will be deemed acceptable by the owner or installer and will not be considered for warranty. This warranty is subject to restrictions and limitations outlined in the Conditions/Exclusions and Limitations sectio ns. WEAR, STAIN AND FADE WARRANTY Engineered Floors warrants to the original purchaser that its LVF products will not wear, stain or fade from normal use for the indicated period of time specified on the authorized retailer’s sample, starting from the date of original purchase. Engineered Floors requires that the LVF was installed and maintained in accordance to the installation instructions and subject to normal residential, light commercial use, or commercial, as further detailed for any individual warrantied for a specific product. This warranty is subject to restrictions and limitations as outlined in the Conditions/Exclusions and Limitations sections of this document. Definitions: x Wear must be through the wear layer to the degree that the printed pattern is altered. x Fade must be to the degree that the floor is permanently discolored. x Stain is defined as a permanent change in color of the surface of the product caused by common household food, beverages, and recommended cleaning products as indicated in our Care and Maintenance Guide. PET-PROOF WARRANTY Engineered Floors warrants to the original purchaser that its LVF products will resist staining from pets (domestic dog or cat) including feces, urine and vomit for the indicated period of time specified on the authorized retailer’s sample, starting from the date of original purchase when properly installed and maintained. This pet-proof warranty is defined as a permanent change in color of the surface of the product after proper spot cleaning as outlined in the care and maintenance guide. This warranty is subject to restrictions and limitations as outlined in the Conditions/Exclusions and Limitations sections of this document. WATERPROOF WARRANTY Engineered Floors warrants its LVF products for the indicated period of time specified on the authorized retailer’s sample from the date of original purchase to the original purchaser to be waterproof and that the structural integrity of the flooring plank will not be significantly diminished by topical exposure to water for the life of the product. The flooring planks integrity will not be affected by moisture, it is probable that when excessive moisture that flows over the edge of the flooring surface onto the subfloor or into other surrounding structures/building materials or where there is standing water, mold or mildew growth can occur. LVF is not a moisture barrier. This limited warranty excludes damage from mold and mildew growth due to prolonged exposure to moisture, damage to surrounding structures such as, but not limited to, subfloors, walls, fixtures, furniture, underlayment, moldings, trims or subfloor heating systems. This limited warranty does not apply to damage caused by water or moisture in the subfloor or underneath the flooring including, but not limited to, damage from subfloor hydrostatic pressure or other conditions that result in water or moisture under the floor. This warranty is subject to restrictions and limitations as outlined in the Conditions/Exclusions and Limitations sections of this document. CONDITIONS/EXCLUSIONS The residential limited warranty is not transferable and applies only to the original purchaser of the LVF product, not to any subsequent owner or user of such product, regardless of how such ownership or use arises. The light commercial limited warranty is not transferable and applies only to the original purchaser of the LVF product, not to any subsequent owners or users of such product, regardless of how such ownership or use arises. Copies of the original sales receipt must be maintained. This warranty applies only where the affected area of the LVF is visible and covers an area greater than 10% of the room. The following are not covered by this limited warranty: x Claims arising out of scratches and dirt. Some products tend to show more scratches and dirt due to color and may require more maintenance. x Shading claims for an overall white product that touches another white plank or tile floor covering. x Damage caused by improper installation (including but not limited to improper adhesives and improper subfloor preparation as outlined in the Installation Instructions). x Damage caused by exposure to extreme heat, freight, accidents, intentional abuse, misuse, improper care and maintenance, vacuum cleaner beater bar, indentations, improper rolling loads, use of chairs or other furniture without proper floor protectors or caster wheels, cuts, surface scratches, impact, changes in color or sheen appearance when exposed to a natural light source, subfloor conditions, fire or smoke damage, flooding caused by natural disaster, water or liquid intrusion, exterior application or modification, alterations, repair or service by a non-authorized third party, or construction-related damage. Page | 3 x Minor shading, color or texture differences between samples and delivered product, all of which will be determined at Engineered Floor’s sole discretion. Engineered Floors cannot guarantee a perfect match between productions. Production runs are dye lot sensitive. There may be minor differences in color and texture between the dealer’s sample and the finished material and from one lot to another. x The following items must be cleaned promptly as they can discolor the grout lines and will not be covered under this warranty: ink, iodine, Mercurochrome, Betadine, dyes, asphalt, tar, grease, baking grease, cooking oils, and nail polish x Damage arising out of the use of the LVF products to seal an existing subfloor from moisture, as LVF products will not inhibit the growth of mold or mildew associated with or caused by flooding, excessive moisture, hydrostatic pressure or alkalis found within a subfloor. x Damage from any urine, feces, or vomit stains other than pets (domestic cat or dog). x LVF products used for athletic playing surfaces, any recreational activity, or inappropriate end user activities. x LVF that has been cut or altered; any installation of the wrong style, color or product with visible defects. Visible defects include but are not limited to shading, surface sheen, squareness, and product color. Labor is excluded on products installed with visible defects. x Damage to surrounding structures such as, but not limited to walls, subfloor, fixtures, furniture, underlayment, moldings, trims, subfloor heating systems, or anything that is not the floor plank. x Damage from neglect, pets, pebbles, other abrasives, insects, spike-heeled shoes, or improper maintenance. x Flooring used outdoors. x Damage caused by chemically reactive material, carpet crocking, dye, mold, stains, spillage, burns, gouges, scratches, indentations, floods, accidents, abuse, or any harsh scouring pads while buffing. x Discoloration or expansion from heat or sunlight. Avoid exposure to long periods of sunlight. Engineered Floors requires the use of UV protective film, blinds, curtains or shades to assure that LVF products are protected from sun and are not overheated due to this exposure. This type of exposure can induce expansion which may cause buckling. Direct sunlight voids all warranties, express or implied; furthermore, the end user shall assume full responsibility for any failure of the flooring, and Engineered Floors shall be released from any claims, damages, or liabilities whatsoever arising out of or related to the failure to install the flooring with approved adhesive when the flooring is exposed to direct sunlight. x Normal wearing of the finish in high traffic areas, pivot points, and seating areas. x Moldings and accessories. LIMITATIONS: The following limitations and conditions also apply: x All maintenance instructions must be followed. The consumer must contact the authorized retailer for details. x Change in surface gloss in traffic areas is normal and not covered by this warranty. x Industry standards allow a maximum 5% irregularity in production. Such defects may be manufacturing related or natural. Should there be any indication that a piece of flooring may be defective due to manufacturing or factory finish, it should not be installed. Installation of flooring that contains any visible manufacturing defect is not covered by this warranty. Engineered Floors must be informed in writing of such defects within a reasonable time. What constitutes a “reasonable time” will be determined at Engineered Floors sole discretion. x These warranties do not apply to any product designated as off-goods including, but not limited to, second quality, specials or non-standard items. Products so designated are sold “AS IS”. x Engineered Floors reserves the right at any time to modify or discontinue any of its products and will not be liable for changes. If the original product or color is no longer available, Engineered Floors may substitute with reasonably comparable products. x A suitable mat or sufficiently large transition area at the entrance door(s) must be used to prevent sand or dust from damaging the flooring. ENGINEERED FLOORS DOES NOT GRANT TO ANY PERSON OR ENTITY THE AUTHORITY TO CREATE FOR IT ANY OBLIGATION OR LIABILITY IN CONNECTION WITH THIS PRODUCT. THIS LIMITED WARRANTY IS IN LIEU OF ANY AND ALL OTHER WARRANTIES, EXPRESS OR IMPLIED. ENGINEERED FLOORS SHALL NOT BE LIABLE TO THE CONSUMER OR ANY OTHER PERSON OR ENTITY FOR ANY INCIDENTAL, SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES (INCLUDING BUT NOT LIMITED TO LOST PROFITS OR USE OF THE ROOM OR SPACE WHERE THE LVF PRODUCT IS INSTALLED) ARISING OUT OF BREACH OF THIS LIMITED WARRANTY. SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF IMPLIED WARRANTIES OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE EXCLUSIONS OR LIMITATIONS MAY NOT APPLY. THIS LIMITED WARRANTY GIVES Page | 4 SPECIFIC LEGAL RIGHTS TO THE CONSUMER, WHO MAY HAVE OTHER LEGAL RIGHTS WHICH VARY FROM STATE TO STATE. THE CONSUMER MUST KEEP THE ORIGINAL RECEIPT AS ENGINEERED FLOORS REQUIRES IT IN ORDER TO VERIFY DATE OF PURCHASE. CLAIMS If a claim arises, it must be submitted to Engineered Floors in writing by the authorized retailer, within a reasonable time after the alleged defect or issue that is the subject of the claim is discovered by the original purchaser. What constitutes a “reasonable time” will be determined at Engineered Floors sole discretion. A claim form must be used and must identify: invoice number, lot number, invoice date, the LVF product collection, and a description of the installation sundries, a detailed description of the alleged defect, and the exact address and location within the address of the installed LVF product. Engineered Floors reserves the right to inspect or test the product at its sole discretion, in the event of a claim. If Engineered Floors determines replacement LVF product is necessary, and the identical LVF product is not available, Engineered Floors will, at its sole discretion, provide a LVF product of comparable quality, color and value. In the event that Engineered Floors repairs a LVF product, this limited warranty shall remain in effect with respect to such repaired LVF product. The above described remedies are the consumer's sole and exclusive remedies for claims under this limited warranty. If Engineered Floors reimburses the consumer for the flooring under the terms of these warranties, Engineered Floors will credit a percentage of the original floor purchase price according to the proration chart below. Warranty for each flooring product is indicated on the retailer's sample. RESIDENTIAL PRORATION SCALE Claim Reported Lifetime Limited 30 Year Limited 25 Year Limited 15 Year Limited 10 Year Limited 7 Year Limited 5 Year Limited 1st to 5th Year 100% 100% 100% 100% 100% 100% 100% 6th to 10th Year 75 % 75% 75% 50% 25% 10% N/A 11th to 15th Year 50% 50% 50% 10% N/A N/A N/A 16th to 20th Year 35% 35% 35% N/A N/A N/A N/A 21st to 25th Year 25% 10% 10% N/A N/A N/A N/A 26th to 30th Year 10% 5% N/A N/A N/A N/A N/A 31st and beyond 5% N/A N/A N/A N/A N/A N/A COMMERCIAL PRORATION SCALE Claim Reported Material Allowed Labor Allowed* 1st Year Material to Repair or replace defective material Reasonable Consideration 1st to 5th Year Material to Repair or replace defective material 50% Labor 5th to 10th Year Material to Repair or replace defective material No labor *reasonable labor costs shall be determined by Engineered Floors. NOTE: SOME JURISDICTIONS DO NOT ALLOW EXCLUSION OR LIMITATIONS OF INCIDENTAL OR CONSEQUENTIAL DAMAGES SO THE ABOVE LIMITATIONS OR EXCLUSIONS MAY NOT APPLY TO YOU. THERE ARE NO OTHER WARRANTIES BEYOND THIS EXPRESS WARRANTY. ALL OTHER WARRANTIES, INCLUDING WARRANTIES OR MERCHANTABILITYOR FITNESS FOR A PARTICULAR PURPOSE, ARE EXCLUDED. NO IMPLIED WARRANTIES OF ANY KIND ARE PROVIDED. EXCEPT AS HEREIN EXPRESSLY STATED, THERE ARE NO WARRANTIESOR CONDITION. EXPRESS OR IMPLIED, BY OPERATION OR OTHERWISE, FOR ANY BREACH OF CONTRACT, PRODUCTS LIABILITY, STRICT LIABILITY, NEGLIGENCE OR PART THEREOF FURNISHED HEREUNDER. THE PARTIES AGREE THAT THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND ALL OTHER WARRANTIES AND/OR GUARANTEES, EXPRESS OR IMPLIED, ARE EXCLUDED FROM THIS TRANSACTION AND SHALL NOT PAY FOR THE CONTRACT PRODUCTS. For additional information, please contact Engineered Floors Technical Services at 866-706-9745 Ext 7105 or hstechservice@engineeredfloors.com RESIDENTIAL BUILDING CONTACTOR LICENSE : 788467 REGISTERED PROFESSIONAL ENGINEER LICENSE: 55194 T FORCECONSULTING, LLC Date : 4/27/2022 Sub: 5306 Rhode Island Ave N, New Hope, MN 55428 Property Identification number :08-118-21-22-0037 Potential Home Buyer: Venkata Tatiraju – (Owner occupant) General contractor: T Forceconsulting, LLC Home Details: x Base Sale Price: $525,000 with optional Deck/Patio with Basement Finish: $600,000 x Livable Area first Floor: 4750 SFT (Including Porch/Deck/Patio and 3 Car Garage) x Livable Area Second Floor: 3450 SFT x 5 BED ROOMS with 5 Full Bath Rooms. x AD compliance requirements. x LEED CERTIFIED – GREEN BUILDING x Aesthetic appearance – Exterior and Interior x Stain steel Appliances x Maintain Existing Trees and Meet city of New Hope Requirements Enclosed Documents: Site Plan Layout Floor Plans – (Approximate sizing) Elevations - (Front, Side and Rear View) Specifications. Experience: Sita R.T Venkata Associated with T-forceconsulting LLC as Qualified Person with extensive knowledge in Design and Construction of Residential and commercial construction. He holds General contractor and registered professional engineer license in Minnesota as well. Almost 20 years of experience design build projects across the nation. RESIDENTIAL BUILDING CONTACTOR LICENSE : 788467 REGISTERED PROFESSIONAL ENGINEER LICENSE: 55194 T FORCECONSULTING, LLC Exterior Specification: Maintenance free vinyl siding & aluminum soffit/fascia Vinyl shakes (per plan) Front Window grids (per plan) Choice of elevation Stonework Poured wall/prefabricated wall with insulation code Water proof foundation Three car Garage – with Asphalt Driveway 4 exterior lawn faucets City sewer and water. Underground utilities 3 weatherproof electric outlets Choice of exterior colors Concrete steps and sidewalk Energy engineered roof trusses House wrap Drain tile system around foundation Finished grade lot Lawn irrigation INTERIOR SPECIFICATIONS: Stainless Steel Appliances 50 Gallon Hot Water Chrome design Faucets PEX water lines, Insulated Plumbing hookups for washing machines Bath fans in all bathrooms RESIDENTIAL BUILDING CONTACTOR LICENSE : 788467 REGISTERED PROFESSIONAL ENGINEER LICENSE: 55194 T FORCECONSULTING, LLC Soak Tub in Master Bath Foundation Drain tile 150 amp electrical service Choice of Gas or Electric GAS Range Smoke and carbon monoxide detectors Oversize base and casing interior trim Poplar newel post and railing systems Birch raised panel custom cabinets Choice of style – doors Professional finished trim and cabinets Granite Kitchen Island Quartz.Granite – Kitchen countertops Quartz Vanity top and sink Shower Doors and Vanity mirrors Choice of carpeting and vinyl colors Choice of Light fixtures- LED Energy efficient Ceramci Bath and shower tiles Laminate Entry and Kitchen, Floor Door Chime 5 phone jacks 5 cable TV jacks Passive radon system Central Air condition Home warranty – 1/2/10 Years Overall Meeting all LEED CERTIFIED GREEN BUILING REQUIREMENTS. Donnay Homes Fortis Builders Great Buy Homes 5306 Rhode Island Ave N Fieldstone Family Homes “B” T Forceconsulting, LLC 5306 Rhode Island Ave N Fieldstone Family Homes “A” Budget for 5306 Rhode Island Ave N EXPENSES AMOUNT Acquisition (including closing and legal costs)(216,473.00)$ Appraisal (375.00)$ Demolition survey (650.00)$ Demolition and site prep (29,700.00)$ Real estate taxes (estimated at 6 months)(1,674.00)$ Lawn services (estimated)(400.00)$ Utility billing (estimated)(200.00)$ Public hearing notice (estimated)(100.00)$ Closing costs for sale (estimated)(1,500.00)$ Legal costs for sale (estimated)(2,000.00)$ TOTAL (253,072.00)$ REVENUE AMOUNT EDA (estimated lot sale proceeds)87,000.00$ TOTAL 87,000.00$ TOTAL COST/REVENUE (166,072.00)$ Taxable Market Value 2021, Payable 2022 Projected Taxable Value 2023, Payable 2024 Change Percent Change 225,000.00$ 575,000.00$ 350,000.00$ 155.56% Estimated Taxes Allocated to City 2021, Payable 2022 Projected Taxes Allocated to City 2023, Payable 2024 Change Percent Change 1,350.00$ 3,450.00$ 2,100.00$ 155.56% Projected Project Expenses (253,072.00)$ Lot Sale Revenue 87,000.00$ Total Cost/Revenue (166,072.00)$ # of Years (Year) Additional Taxes Collected By City Total Cost/ Revenue Return On Investment 0 (present)-$ (166,072.00)$ -100.00% 1 (payable 2024)2,100.00$ (163,972.00)$ -98.74% 2 (payable 2025)4,263.00$ (161,809.00)$ -97.43% 3 (payable 2026)6,490.89$ (159,581.11)$ -96.09% 4 (payable 2027)8,785.62$ (157,286.38)$ -94.71% 5 (payable 2028)11,149.19$ (154,922.81)$ -93.29% 10 (payable 2033)24,074.15$ (141,997.85)$ -85.50% 15 (payable 2038)39,057.72$ (127,014.28)$ -76.48% 20 (payable 2043)56,427.79$ (109,644.21)$ -66.02% 25 (payable 2048)76,564.46$ (89,507.54)$ -53.90% 30 (payable 2053)99,908.37$ (66,163.63)$ -39.84% *Based on new home valued at $575,000 Estimated Tax Impact of Improvements at 5306 Rhode Island Ave N Estimated Return on Investment for 5306 Rhode Island Ave N Description Taxable Market Value Change Cash Flow Investment -$ (166,072.00)$ Return, Year 1 350,000.00$ 2,100.00$ Return, Year 2 360,500.00$ 2,163.00$ Return, Year 3 371,315.00$ 2,227.89$ Return, Year 4 382,454.45$ 2,294.73$ Return, Year 5 393,928.08$ 2,363.57$ Return, Year 6 405,745.93$ 2,434.48$ Return, Year 7 417,918.30$ 2,507.51$ Return, Year 8 430,455.85$ 2,582.74$ Return, Year 9 443,369.53$ 2,660.22$ Return, Year 10 456,670.61$ 2,740.02$ Return, Year 11 470,370.73$ 2,822.22$ Return, Year 12 484,481.85$ 2,906.89$ Return, Year 13 499,016.31$ 2,994.10$ Return, Year 14 513,986.80$ 3,083.92$ Return, Year 15 529,406.40$ 3,176.44$ Return, Year 16 545,288.60$ 3,271.73$ Return, Year 17 561,647.25$ 3,369.88$ Return, Year 18 578,496.67$ 3,470.98$ Return, Year 19 595,851.57$ 3,575.11$ Return, Year 20 613,727.12$ 3,682.36$ Return, Year 21 632,138.93$ 3,792.83$ Return, Year 22 651,103.10$ 3,906.62$ Return, Year 23 670,636.19$ 4,023.82$ Return, Year 24 690,755.28$ 4,144.53$ Return, Year 25 711,477.94$ 4,268.87$ Return, Year 26 732,822.28$ 4,396.93$ Return, Year 27 754,806.94$ 4,528.84$ Return, Year 28 777,451.15$ 4,664.71$ Return, Year 29 800,774.69$ 4,804.65$ Return, Year 30 824,797.93$ 4,948.79$ Total Returns 99,908.37$ Investment Cost 253,072.00$ Selling Price 87,000.00$ Return on Investment -39.84% Description Amount Investment (166,072.00)$ Return, Year 1 2,100.00$ Return, Year 2 2,163.00$ Return, Year 3 2,227.89$ Return, Year 4 2,294.73$ Return, Year 5 2,363.57$ Return, Year 6 2,434.48$ Return, Year 7 2,507.51$ Return, Year 8 2,582.74$ Return, Year 9 2,660.22$ Return, Year 10 2,740.02$ Return, Year 11 2,822.22$ Return, Year 12 2,906.89$ Return, Year 13 2,994.10$ Return, Year 14 3,083.92$ Return, Year 15 3,176.44$ Return, Year 16 3,271.73$ Return, Year 17 3,369.88$ Return, Year 18 3,470.98$ Return, Year 19 3,575.11$ Return, Year 20 3,682.36$ Return, Year 21 3,792.83$ Return, Year 22 3,906.62$ Return, Year 23 4,023.82$ Return, Year 24 4,144.53$ Return, Year 25 4,268.87$ Return, Year 26 4,396.93$ Return, Year 27 4,528.84$ Return, Year 28 4,664.71$ Return, Year 29 4,804.65$ Return, Year 30 4,948.79$ Total Returns 99,908.37$ Internal Rate of Return -2.69% Estimated Internal Rate of Return for 5306 Rhode Island Ave N Year Original Taxable Market Value (assumes growth in value over time) Improved Taxable Market Value (assumes growth in value over time) New Taxable Value Projected City Taxes on New Taxable Market Value 1 225,000.00$ 575,000.00$ 350,000.00$ 2,100.00$ 2 231,750.00$ 592,250.00$ 360,500.00$ 2,163.00$ 3 238,702.50$ 610,017.50$ 371,315.00$ 2,227.89$ 4 245,863.58$ 628,318.03$ 382,454.45$ 2,294.73$ 5 253,239.48$ 647,167.57$ 393,928.08$ 2,363.57$ 6 260,836.67$ 666,582.59$ 405,745.93$ 2,434.48$ 7 268,661.77$ 686,580.07$ 417,918.30$ 2,507.51$ 8 276,721.62$ 707,177.47$ 430,455.85$ 2,582.74$ 9 285,023.27$ 728,392.80$ 443,369.53$ 2,660.22$ 10 293,573.97$ 750,244.58$ 456,670.61$ 2,740.02$ 11 302,381.19$ 772,751.92$ 470,370.73$ 2,822.22$ 12 311,452.62$ 795,934.48$ 484,481.85$ 2,906.89$ 13 320,796.20$ 819,812.51$ 499,016.31$ 2,994.10$ 14 330,420.09$ 844,406.89$ 513,986.80$ 3,083.92$ 15 340,332.69$ 869,739.09$ 529,406.40$ 3,176.44$ 16 350,542.67$ 895,831.26$ 545,288.60$ 3,271.73$ 17 361,058.95$ 922,706.20$ 561,647.25$ 3,369.88$ 18 371,890.72$ 950,387.39$ 578,496.67$ 3,470.98$ 19 383,047.44$ 978,899.01$ 595,851.57$ 3,575.11$ 20 394,538.86$ 1,008,265.98$ 613,727.12$ 3,682.36$ 21 406,375.03$ 1,038,513.96$ 632,138.93$ 3,792.83$ 22 418,566.28$ 1,069,669.38$ 651,103.10$ 3,906.62$ 23 431,123.27$ 1,101,759.46$ 670,636.19$ 4,023.82$ 24 444,056.97$ 1,134,812.24$ 690,755.28$ 4,144.53$ 25 457,378.67$ 1,168,856.61$ 711,477.94$ 4,268.87$ 26 471,100.03$ 1,203,922.31$ 732,822.28$ 4,396.93$ 27 485,233.04$ 1,240,039.98$ 754,806.94$ 4,528.84$ 28 499,790.03$ 1,277,241.18$ 777,451.15$ 4,664.71$ 29 514,783.73$ 1,315,558.41$ 800,774.69$ 4,804.65$ 30 530,227.24$ 1,355,025.17$ 824,797.93$ 4,948.79$ Tax Value Growth Rate 3% City Rate 60% The equation for calculating property taxes, in its most simplistic form, is Taxable Market Value X Property Tax Class Rate X City Tax Rate. The Taxable Market Value in this calculation is assumed based on the city's projections for growth in property value due to the improvements. The Property Tax Class Rates are set by the State of MN and stay fairly consistent from year to year (there have been changes in commercial industrial, however; residential is mostly constant). The city’s Tax Rate changes every year based on the levy certified and the overall tax value of the city. So, the Tax Rate used in this illustration is an assumption. The city’s rate has varied between 58-63% in recent years. Property taxes are calculated on taxable market value, not estimated market value. It is of important note, that this calculation does not take into consideration the market value exclusion which is applied to residential properties under $413,800 in value. Tax Calculator for 5306 Rhode Island Ave N Comparison of Costs & Tax Impact for Recent Projects Since implementation of analysis template that utilizes tax growth rate assumptions (September of 2020) 5306 Rhode Island Avenue North 4201 Boone Avenue North 4215 Nevada Avenue North 5213 Pennsylvania Avenue North 4637 Aquila Avenue North 4215 Louisiana Avenue North Number of Units 1 2 1 1 1 1 Project Description Demolition & rebuild Demolition, lot split & rebuild Demolition & rebuild Demolition & rebuild Demolition & rebuild Demolition & rebuild Year Acquired TBD TBD TBD 2021 2021 2020 Projected or Actual Projected (at time of lot sale) Projected (at time of offer) Projected (at time of offer) Projected (at time of lot sale) Projected (at time of lot sale) Projected (at time of lot sale) Expenses ($253,072.00) ($343,975.00) ($237,301.00) ($205,172.18) ($127,292.01) ($170,441.53) Revenue $87,000.00 $150,000.00 $78,000.00 $72,000.00 $81,000.00 $69,000.00 Total Cost/Revenue ($166,072.00) ($193,975.00) ($159,301.00) ($133,172.18) ($46,292.01) ($101,441.53) Estimated Taxable Value of New Home(s) $575,000.00 $850,000.00 $430,000.00 $485,000.00 $445,000.00 $380,000.00 *Additional Taxes Collected by City - 1 year $2,100.00 $5,100.00 $1,656.00 $1,902.00 $1,254.00 $786.00 *Additional Taxes Collected by City - 30 years $99,908.37 $242,634.62 $78,784.89 $90,488.44 $59,659.57 $37,394.28 *Return On Investment - 30 years -39.84% 25.09% -50.54% -32.05% 28.88% -63.14% *Internal Rate of Return - 30 years -2.69% 1.31% -3.64% -2.08% 1.49% -5.01% *Assumed 3% tax value growth rate I:\RFA\COMM DEV\2022\EDA\Curbside Appeal Rebate Program\Q ‐ Curbside Appeal Rebate Program 05‐09‐22.docx   Request for Action  May 9, 2022    Approved by: Kirk McDonald, City Manager  Originating Department: Community Development  By: Jeff Alger, Community Development Specialist;   Jeff Sargent, Director of Community Development  Agenda Title  Resolution approving curbside appeal reimbursement program  Requested Action  Staff requests that the City Council approve a resolution implementing the Curbside Appeal Reimbursement  Program. The intent of the program would be to encourage homeowners to make improvements to the  exterior of their homes and garages in areas that are visible from the street. The city would reimburse a portion  of the costs for projects that meet eligibility requirements.  Policy/Past Practice  It is a past practice of staff to research, present options, and make recommendations to the City Council on  housing loan/grant programs and the use of Economic Development Authority (EDA) funds. In the past  several City Council members have suggested that staff review housing improvement programs offered in  other cities and make recommendations for additional programs in New Hope.  Background  The City Council expressed support for implementation of an exterior improvement reimbursement program  when discussed at the February 22, 2022, work session. Staff has finalized the proposed framework for the  Curbside Appeal Reimbursement Program (Program) and prepared the attached overview, application, and  agreement/certificate documents. The cities of Blaine, Coon Rapids, and Fridley have implemented “Front  Door Grant Programs” in recent years to incentivize improving the curb appeal of homes. New Hope’s pilot  program utilizes some aspects of these programs while requiring that exterior improvements be made in areas  that abut a street in the front or side yard to be eligible. Investing in the curbside appeal of properties within  the city will aid in improving the overall housing stock, instill confidence into neighborhoods, and increase  home values. Staff believes the Program will complement the city’s existing housing programs and will be a  good use of some general fund surplus and EDA funds. The framework of the program is outlined as follows:    Eligible Properties   Owner‐occupied one‐ and two‐family homes with homestead status.   Properties that are current on their property taxes and do not have any outstanding city citations or  past due utility bills.   Properties that have not received funds through the Program within the last five years.  Eligible Projects   Project(s) must be pre‐approved by city staff. Work could not begin until an application had been  approved by the city.   Project(s) must take place in front or side yard(s) of a house or garage that abut a street.   Minimum project cost of $4,000; reimbursed at 25% with a maximum reimbursement of $5,000.   Eligible projects include:  o Alteration to roofline.  Agenda Section EDA Item Number  5    Request for Action, Page 2    o Addition of covered front porch.  o Installation of new front door with window(s).  o Installation of new storm door with window(s).  o Installation of new garage door that:   Includes windows and/or    Is comprised of solid, stained wood or composite wood.  o Addition of windows above and/or on side(s) of front door (sidelight and transom windows).  o Installation of column(s).  o Addition of brick or stone façade/accents.  o Incorporation of address numbers into stone façade.  o Installation of shutters, shakes, and/or board and batten siding.  o Enlargement of window(s) by at least 25% (calculated per individual window) or addition of  window(s) to area that did not previously have window opening.   Driveway upgrades were removed from the list of eligible projects as directed by the City Council.    Reimbursement   Project would need to be completed within 180 days of approval.   Property owner would need to provide paid invoices/statements after completion of the project.   Property owners who do work themselves could submit material lists and get paid for material costs  but not labor.   Finance Department would be responsible for issuing reimbursement checks and W‐9s, as  reimbursement funds must be treated as income.   Building permit fees would not be waived.    The following table shows a breakdown of resident costs and city reimbursement amounts based on various  project costs:  Project Cost Resident Cost City Reimbursement  $3,999 or less 100% of cost (not eligible) $0  $4,000 $3,000 $1,000  $8,000 $6,000 $2,000  $12,000 $9,000 $3,000  $16,000 $12,000 $4,000  $20,000 $15,000 $5,000  $20,001 or more 100% of cost above $20,000 $5,000    Staff is proposing a two‐year trial period for the Program in 2022 and 2023. After that time, it could be  extended, adjusted, or discontinued. Funds would be dispersed on a first come, first served basis in 2022,  beginning on June 1, and again in 2023, beginning on January 1. Any funds remaining from 2022 would be  rolled over to 2023.    The Program would be marketed to residents through a flyer at the Community Development counter at City  Hall, information on the Residential Assistance Programs page on the city’s website and inside of the  Residents Guide, articles on the city’s website and in the In Touch newsletter, social media posts, readerboard  signage, and possible CCX and/or Sun Post stories.      Request for Action, Page 3    Funding  As outlined in the attached memorandum from Vicki Holthaus, the city’s financial consultant from Abdo is  recommending that the City Council allocate $100,000 from the general fund surplus to support  implementation of the program in its first year. Any unused funds from the initial year would be held over to  provide funding in subsequent years. Staff is recommending allocating $100,000 per year for the program in  its first two years. Funds in the EDA reserves would cover future costs.  Recommendation  Staff recommends that the City Council approve a resolution approving implementation of the curbside  appeal reimbursement program.  Attachments   Resolution   Memo from Vicki Holthaus (February 9, 2022)   Program overview   Program application   Program certificate and agreement   Work session minutes (February 22, 2022)    Please refer to the report included with the February 22, 2022, work session packet for additional  background information.    −1− CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 22-___ RESOLUTION APPROVING CURBSIDE APPEAL REIMBURSEMENT PROGRAM BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope (“EDA”) as follows: WHEREAS, the city of New Hope has been proactive in encouraging homeowners to make improvements to the exterior of their homes and garages in areas that are visible from the street; WHEREAS, the proposed Curbside Appeal Reimbursement Program (“Curbside Program”) would reimburse a portion of the costs to homeowners who make certain home improvements to improve the “curb appeal” of their homes; WHEREAS, the proposed reimbursements to homeowner applicants wishing to improve their homes and seek partial reimbursement of said costs would range from a minimum of $1,000 to a maximum of $5,000; WHEREAS, enacting this resolution will further the purpose and objectives of the City’s Property Maintenance Code, Section 3-30 including specifically: (1) protection of stability of areas within the City by encouraging home maintenance and improvement; (2) prevention of adverse conditions; (3) proper maintenance of exteriors of homes and garages; (4) to prevent deterioration and blight; and (5) preserve value of residential properties throughout the city; WHEREAS, the Curbside Program will encourage investment in homes which will, in turn, benefit surrounding homes and the City as a whole to maintain the current housing stock in good condition; WHEREAS, the EDA and the City have the legal authority to adopt this Curbside Program, and the managerial and financial capability to administer the proposed Curbside Program; WHEREAS, Victoria Holthaus, the city’s financial consultant from Abdo Financial Solutions, is recommending that the City Council allocate $100,000 from the general fund surplus to support implementation of the Curbside Program in its first year. Any unused funds from the initial year would be held over to provide funding in subsequent years; WHEREAS, the Curbside Program will thereafter be funded by EDA reserve funds; and −2− WHEREAS, City staff is hereby seeking approval from the EDA of the Curbside Program as the EDA will be funding and managing this program. 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. It is in the best interest of the EDA to approve the Curbside Appeal Reimbursement Program in order to encourage homeowners to make improvements to the exteriors of their homes and garages in areas that are visible from the street. 3. The Curbside Appeal Reimbursement Program is hereby adopted and will be funded by EDA funds. Dated the 9th day of May, 2022. ____________________________________ Kathi Hemken, President Attest: _____________________________ Kirk McDonald, Executive Director \\jspserver\data\Attorney\SAS\1 Client Files\2 City of New Hope\99-10011(community development general)\EDA Resolution approving curbside appeal reimbursement program - 5-9-22.docx MEMO TO: KIRK MCDONALD FROM: VICKI HOLTHAUS SUBJECT: CONSIDER ALLOCATION OF $100,000 OF GENERAL FUND SURPLUS TOWARDS THE EXTERIOR IMPROVEMENT REBATE PROGRAM DATE: FEBRUARY 9, 2022 BACKGROUND The City received $1,106,158.24 of Federal American Rescue Act Plan (ARPA) funds in July of 2021 and an additional $36,223.64 in November of 2021. The US Treasury allows for cities to utilize the lost revenue provision of the Federal guidance to secure allocation of the funds. The City has determined adequate governmental service expenditures occurred in 2021 to justify acceptance of the Federal allocation of ARPA funds. The City’s preliminary 4th quarter report shows a $200K deficit in the General Fund; however, the deficit includes a $1,641,664 transfer out of the CARES Act funding received in 2020. If you exclude the transfer out, the General Fund would report a $1,430,887 surplus for FY 2021. This is a result of revenue in excess of budget, and expenditures below budget. It is important to recall that the transfer of the CARES Act funding is possible due to the elevated fund balance generated in the General Fund; an amount well in excess of the 42% reserve required by City policy. City staff is recommending the City Council consider using $100,000 of this surplus to fund the initial year of an exterior improvement rebate program. Subsequent years of the program would be funded by EDA reserves. Any unused funds from the initial year of the program will be held over to provide funding in subsequent years. RECOMMENDATION City Council approve the allocation of $100,000 of general fund surplus monies to support the implementation of the Exterior Improvement Rebate Program. For more information, visit NewHopeMN.gov/live/housing/residential_assistance_programs CURBSIDE APPEAL REIMBURSEMENT PROGRAM PROGRAM INTENT The intent of the Curbside Appeal Reimbursement Program is to encourage homeowners to make improvements to the exterior of their homes and garages in areas that are visible from the street. The city will reimburse a portion of the costs for projects that meet eligibility requirements. There are no income limits to participate in the program. PROJECT REQUIREMENTS All applications must include at least one project from this list and have a minimum project cost of $4,000. Projects not included on this list will not contribute to the minimum project cost.  Alteration to roofline  Addition of covered front porch  Installation of new front door with window(s)  Installation of new storm door with window(s)  Installation of new garage door that: o Includes windows and/or o Is comprised of solid, stained wood or composite wood  Addition of windows above and/or on side(s) of front door (sidelight and transom windows)  Installation of column(s)  Addition of brick or stone façade/accents  Incorporation of address numbers into stone façade  Installation of shutters, shakes and/or board and batten siding  Enlargement of window(s) by at least 25% (calculated per individual window) or addition of window(s) to area that did not previously have a window opening Tools, labor provided by homeowners, and insurance claims are not eligible for reimbursement. PROJECT FUNDING This program is funded by New Hope’s Economic Development Authority (EDA). Reimbursement amounts range from a minimum of $1,000 to a maximum of $5,000. Applicants are responsible for 75% of project costs up to $20,000 and 100% of costs beyond $20,000. ELIGIBILITY REQUIREMENTS 1-to-2-unit, owner-occupied home Home is in New Hope and has homestead status with Hennepin County Property Records (relative homestead is not eligible) Current on Hennepin County property taxes and no outstanding citations or past due utility bills Improvements include at least one item from eligible project list with a minimum cost of $4,000 Improvements will be visible from the street (front yard or side yard abutting a street) Projects are not part of an insurance claim Applicant has not received funds from the program within the last five years Work cannot begin until a Reimbursement Award Certificate has been issued to the property owner CONTACT INFORMATION For questions about the reimbursement program or more information, please contact: Jeff Alger •Phone: 763-531-5119 •Email: jalger@newhopemn.gov Brandon Bell •Phone: 763-531-5114 •Email: bbell@newhopemn.gov For more information, visit NewHopeMN.gov/live/housing/residential_assistance_programs Project Cost Resident Cost Reimbursement $3,999 or less 100% of cost (not eligible) $0 $4,000 $3,000 $1,000 $8,000 $6,000 $2,000 $12,000 $9,000 $3,000 $16,000 $12,000 $4,000 $20,000 $15,000 $5,000 $20,001 or more 100% of cost above $20,000 $5,000 All projects must be pre-approved by city staff. Work cannot begin until an application has been approved by the city. Projects that are not pre-approved will not qualify for the program and will not be eligible for reimbursement. Building permit fees are not waived and are not eligible for reimbursement. Property owners who do work themselves may submit material lists and be reimbursed for 25% of material costs up to $5,000; not including labor. Property owners must provide paid invoices/statements after completion of the project. All funds will be available on a first come, first served basis. Funds will be reserved for a project when a Program Agreement has been signed and Reimbursement Award Certificate has been issued. Funds will be disbursed after work has been completed, permits have been closed, and a final site visit with EDA staff has been completed. The reimbursement is treated as income and must be reported to the Internal Revenue Service. The city will then issue a 1099-G form to the reimbursement recipient(s) by January 31 of the following year. REIMBURSEMENT AWARD CERTIFICATE Once a project has been approved, a Reimbursement Award Certificate will be issued. It will specify the expiration date, valuation of the project, and amount to be reimbursed upon completion. In order to receive reimbursement, all eligible projects must be completed within 180 days from when a Reimbursement Award Certificate was issued. PROCESS 1.Determine if project is eligible for reimbursement 2.Prepare a project list describing the scope of work 3.If hiring a contractor, collect bids (2+ bids recommended as costs will vary between contractors) 4.Secure financing (visit newhopemn.gov for loan and grant opportunities) 5.Submit Curbside Appeal Reimbursement Program application with W-9 form 6.Include list of material and costs for do-it-yourself projects (only cost of materials will be reimbursed) 7.Apply for building permit(s) 8.Sign Reimbursement Award Certificate (will specify amount to be reimbursed and expiration date) 9.Begin work, schedule progress inspections as required, and close permit(s) upon completion 10.Schedule post-construction visit with the EDA Staff (separate from final permit inspection) 11.Reimbursement check will be mailed For more information, visit NewHopeMN.gov/live/housing/residential_assistance_programs PROJECT EXAMPLES EXAMPLE 1 Featured Exterior Projects ▪ Stone Accents: Pieces of stone that are applied to the exterior of a home. ▪ Shakes: A type of siding that is split on one or both sides to give the appearance of individual blocks. ▪ Columns: Typically located in front of garage or front door of a home. ▪ Board & Batten: Type of exterior siding that has alternating wide boards (board) and narrow wooden strips (batten). ▪ Garage Door with Windows STONE ACCENTS SHAKES COLUMNS BOARD & BATTEN For more information, visit NewHopeMN.gov/live/housing/residential_assistance_programs PROJECT EXAMPLES EXAMPLE 2 Featured Exterior Projects ▪ Addition of Sidelight and Transom Windows: Windows located on the side(s) and top of the front door. ▪ Columns ▪ Stone Façade/Accents ▪ Shakes OTHER EXAMPLES ▪ Address Numbers on Stone Façade: Typically located on side of garage door(s) facing the street. ▪ Storm Door and Front Door: Must include windows to qualify. ADDRESS NUMBERS STORM DOOR & SIDELIGHT SHUTTERS SIDELIGHT & TRANSOM WINDOW COLUMNS FRONT DOOR SHAKES STONE FAÇADE Page 1 of 4 CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY 4401 Xylon Ave N • New Hope MN 55428 • Phone: 763-531-5127 • newhopemn.gov • newhopeinspections@newhopemn.gov CURB SIDE APPEAL REIMBURSEMENT APPLICATION PROGRAM OVERVIEW The intent of the Curbside Appeal Reimbursement Program is to encourage homeowners to make improvements to the exterior of their homes and garages in areas that are visible from the street. The city will reimburse a portion of the costs for projects that meet eligibility requirements. There are no income limits or restrictions to participate in the program. Property owners must invest a minimum of $4,000 in eligible projects listed below to qualify for a reimbursement. INCLUDE THE FOLLOWING WITH APPLICATION: ✓ Description of work (page 2) ✓ Itemized list showing breakdown of costs ✓ Photograph of area(s) that will be improved (before and after photos may be shared via the city’s media platforms) ✓ Permit application(s) for work requiring construction permits (include site plans and survey as needed) PROPERTY INFORMATION Property Address: ___________________________________________________________________________________  Single Family Home  Twinhome  Duplex PROPERTY OWNER(S) INFORMATION Name: __________________________________________ Phone: __________________________________________ Email: ___________________________________________ Signature: _______________________________________ Name: __________________________________________ Phone: __________________________________________ Email: ___________________________________________ Signature: _______________________________________ All persons listed as an owner of this property certify all information provided on this application is true and accurate. ELIGIBILTY REQUIREMENTS (ALL CONDITIONS MUST BE MET TO QUALIFY) Property is located in New Hope:  Yes  No Owner currently resides in the home with “homestead” status according to Hennepin County records:  Yes  No Property taxes are current:  Yes  No Property is current on utility bills with no outstanding citations:  Yes  No Scope of work includes at least one item from the eligible project list and costs a minimum of $4,000:  Yes  No Project takes place in and is visible from the front yard or side yard abutting a street:  Yes  No Work has not started on the proposed project(s):  Yes  No Work is not covered or will not be covered by an insurance claim:  Yes  No Applicant has not received reimbursement from this program within the last five years:  Yes  No Projects started prior to the issuance of a Reimbursement Award Certificate will not be eligible for program funding. Page 2 of 4 CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY 4401 Xylon Ave N • New Hope MN 55428 • Phone: 763-531-5127 • newhopemn.gov • newhopeinspections@newhopemn.gov CURB SIDE APPEAL REIMBURSEMENT APPLICATION ELIG IBLE IMPROVEMENT PROJECTS Projects listed below are eligible for reimbursement and count towards the minimum cost of $4,000. Projects not listed do not qualify for reimbursement and do not count towards the minimum cost of $4,000. Check all that apply:  Alteration to roofline  Addition of covered front porch  Installation of new front door with window(s)  Installation of new storm door with window(s)  Installation of new garage door that:  Includes windows and/or  Is comprised of solid, stained wood or composite wood  Addition of windows above and/or on side(s) of front door (sidelight and transom windows)  Installation of column(s)  Addition of brick or stone façade/accents  Incorporation of address numbers into stone façade  Installation of shutters, shakes and/or board and batten siding  Enlargement of window(s) by at least 25% (calculated per individual window) or addition of window(s) to area that did not previously have a window opening Describe Work: _____________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ __________________________________________________________________________________________________ Tools, labor provided by homeowners, and insurance claims are not covered by the reimbursement. PROJECT FUNDING This program is funded by New Hope’s Economic Development Authority (EDA). Reimbursement amounts range from a minimum of $1,000 to a maximum of $5,000. Applicants are responsible for 75% of project costs up to $20,000 and 100% of costs beyond $20,000. Example: If a homeowner spends $8,000 on eligible improvement projects, the city will reimburse $2,000. All funds will be available on a first come, first served basis. Funds will be reserved for a project when a Program Agreement is signed. Funds will be disbursed after work has been completed, permits have been closed, and a final site visit with EDA staff has been completed. Project must be completed within 180 days from when a Reimbursement Award Certificate was issued. PROJECT FINANCING The reimbursement offered through this program will only pay a portion of the overall project cost. The city also offers residents a variety of loans and grants through the Center for Energy and Environment and Hennepin County. Visit the Residential Assistance Programs page at newhopemn.gov to learn more. Page 3 of 4 CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY 4401 Xylon Ave N • New Hope MN 55428 • Phone: 763-531-5127 • newhopemn.gov • newhopeinspections@newhopemn.gov CURB SIDE APPEAL REIMBURSEMENT APPLICATION STEP BY STEP APPLICATION CHECKLIST ***Please submit only pages 1 & 2 of this application for the city to review. ***  STEP 1: Determine Project List Ensure you have a clear vision and scope of work for the project(s) you wish to complete. Compile a list of the project(s) wants and needs for contractors to understand your plan(s). This will allow them to provide an accurate bid/estimate for the work.  STEP 2: Collect Bids from Contractors (or a material list for DIY projects) If hiring a contractor for the work, it is always a good idea to get at least 2 or 3 bids from contractors as pricing will vary. For work you are completing yourself, provide a materials list detailing the items being used, quantities, and costs. Labor completed by the property owner (yourself) or family and friends is not eligible for reimbursement, nor is the purchase of tools and equipment.  STEP 3: Apply for and Secure Project Financing (if needed) Before beginning any work, confirm if additional financing is needed and get pre-approved to ensure your projects will be covered. The city offers residents a variety of loans and grants through the Center for Energy and Environment (CEE) and Hennepin County. Visit the Residential Assistance Programs page at newhopemn.gov to learn more or contact the CEE at 612-335-5884 or loaninfo@mncee.org.  STEP 4: Select Contactor When selecting a contractor, ensure they are licensed by the State of Minnesota.  STEP 5: Submit Curbside Appeal Reimbursement Program Application to the City Submit the Curbside Appeal Reimbursement Program application (pages 1 and 2 of this document) along with the selected contractor bid and/or material lists (for DIY projects). The city will review for eligibility and verify project value. Taxpayer information (step 6) and permits (step 7) should be submitted at the same time.  STEP 6: Submit Taxpayer Information on W-9 Form These reimbursements funds are considered income. The New Hope EDA must report the reimbursement payment to the Internal Revenue Service. As part of the reimbursement process, applicants must submit W-9 forms, including their Taxpayer Identification Number. The EDA will issue a 1099-G from to the reimbursement recipient(s) by January 31 of the following year. Reimbursement recipients are responsible for including information concerning these funds on their personal income tax statement. If you have questions about how this will affect your personal taxes or your income-based or disability benefits, please seek advice from a tax expert.  STEP 7: Apply for Permit(s) Building, electrical, mechanical, and plumbing permit applications can be accessed at newhopemn.gov/permits. If a contractor has been hired for the project(s) they should complete this step. Allow up to one week for plan review and permit approval. Contact the Inspections Department at 763-531-5127 or newhopeinspections@newhopemn.gov with any questions regarding permits or plan review. All permits must be issued before proceeding to the next step. Page 4 of 4 CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY 4401 Xylon Ave N • New Hope MN 55428 • Phone: 763-531-5127 • newhopemn.gov • newhopeinspections@newhopemn.gov CURB SIDE APPEAL REIMBURSEMENT APPLICATION  STEP 8: Schedule Pre-Construction Visit and Sign Curbside Appeal Program Agreement with the City Once steps 5-7 have been completed and all permits have been issued, schedule a pre-construction visit with EDA staff at 763-531-5127 or 763-531-5114 prior to beginning work. After the pre-construction visit has been completed the Program Agreement must be signed by all property owners and city staff. After the Program Agreement has been signed, funds will be reserved for projects completed within 180 days. All work must be completed within 180 days, or the reimbursement will be forfeited.  STEP 9: Display Yard Sign As part of the program, reimbursement recipients will be asked to place a Curbside Appeal Reimbursement Program yard sign in their front yard during construction.  STEP 10: Complete Work Coordinate construction work with your contractor to ensure all work is completed within 180 days of when the Program Agreement was signed. Contact the Inspection Department to schedule any required progress inspections at 763-531-5127.  STEP 11: Have All Permitted Work Inspected and Approved Upon completion of the project(s), contact the Inspection Department to schedule a final inspection at 763-531-5127.  STEP 12: Schedule Post-Construction Visit with EDA Staff (Separate from Permit Inspections) A final visit from EDA staff will verify that the work completed meets the requirements of the program and did not substantially change from the plan originally submitted and approved. Photographs of the project will be taken. Schedule with EDA staff by calling 763-531-5127 or 763-531-5114.  STEP 13: Reimbursement will be Disbursed Once final paid invoices, lien waivers and a construction statement from the contractor(s) or receipts from supplier(s), verifying project amounts, your reimbursement request will be processed. A check will be made payable and directly mailed to you. The EDA will also mail a 1099-G form to the reimbursement recipient(s) by January 31 of the following year.  STEP 14: Showcase the Project The city of New Hope would like to showcase some of these exceptional remodeling projects to help promote this program and encourage your neighbors to make similar improvements. Staff may contact you in the future about showcasing your project for a city newsletter, website, or other media outlet. This award is issued to: As property owner of: Upon successful competition of the qualifying exterior home improvement projects, a reimbursement will be awarded to you in the amount of: $ Issue Date: Expiration Date: This certificate becomes null and void if work is not completed by expiration date noted on this certificate CURBSIDE APPEAL REIMBURSEMENT CERTIFICATE Brandon Bell, Community Development Assistant Jeff Alger, Community Development Specialist These dollar amounts cannot be increased after the signing date of this agreement. If your final project amount ends up being less than your submitted bids, your reimbursement amount will be decreased to the relevant amount. Homeowner(s) will receive a reimbursement as specified above pending owner’s compliance with the guidelines of the city of New Hope Curbside Appeal Reimbursement Program as described in related informational material, this agreement, and the program application. Final determination of eligibility rests with the city of New Hope. 1.The homeowner certifies that he/she/they live in and is/are the owner(s) of record of the property where the funds will be used to finance home improvements. 2.The homeowner certifies that the property has homestead status, property taxes are current according to Hennepin County Property Records and there are no outstanding citations or past due utility bills. 3.The homeowner understands that only work that has not yet started and is not being covered or partially covered by an insurance claim, will be considered eligible for funding through this program. 4.Work performed at the property shall be as stated in the homeowner’s application on the contractor(s) bid(s) or the owner’s materials list, and on the site plan submitted. Any changes to this scope of work must be in writing to the city. Reimbursement amounts will not be increased, but may be lowered, because of this change. 5.Any contractor(s) performing work through this program must meet State of Minnesota licensing, building permit, zoning, and building code requirements. 6.If the homeowner is performing any work, the owner understands that upon completion all work must meet city of New Hope building permit, zoning, and code requirements. Some projects may not be allowed by State Building Code to be completed by the homeowner. 7.The homeowner agrees to allow a city representative to take before and after photos of the exterior of the home where the work is being completed. 8.All projects must be completed within 180 days from the date of this signed agreement, or the reimbursement will be forfeited. 9.The reimbursement funds will be held by the city until completion of the work. The funds will be disbursed to the homeowner after all building permits have been inspected and have a final completion date with the Inspections Department and a final site visit with Economic Development Authority (EDA) has been completed to ensure project(s) meet program eligibility requirements. The homeowner must submit the following items to the city upon completion of the work: a.A final invoice from the contractor(s) showing the total cost for the project and all payments made to the contractor from the homeowner. b.Detailed receipts from the building materials supplier for any work done by the homeowner. 10.The city will verify that all work requiring permits has been inspected and a final inspection completion date has been issued. All work not requiring a permit will be inspected during the final site visit. CURBSIDE APPEAL REIMBURSEMENT CERTIFICATE AND PROGRAM AGREEMENT P a g e | 1 11. The city will process all reimbursement requests and disburse funds to the homeowner(s) within 30 days. The check will be disbursed to the homeowner(s) via mail. 12. The homeowner will be asked to place a Curbside Appeal Reimbursement Program yard sign in their front yard during construction. 13. The homeowner(s) acknowledges he/she/they might be contacted in the future by city staff to discuss further documenting or showcasing of their improvement project(s). 14. The homeowner(s) agrees to release and hold harmless the city of New Hope, together with its Council and employees, from and against any and all claims, demands, injuries, damages, cost, and expenses, including reasonable attorney’s fees, arising out of or relating to the Curbside Appeal Reimbursement Program. Property Owner Signature: ___________________________________________________ Date: ______________ Property Owner Signature: ___________________________________________________ Date: ______________ City Representative Signature: ________________________________________________ Date: ______________ CURBSIDE APPEAL REIMBURSEMENT CERTIFICATE AND PROGRAM AGREEMENT P a g e | 2 City Council Work Session February 22, 2022 Page 3 Mr. Sargent noted the policy is a guiding document only and is not the same as a city ordinance. He commented that currently the city cannot prohibit group homes from residential neighborhoods but may be able to limit the number of group homes in the future as a result of potential federal law changes. Ms. Stacy Woods, city attorney, stated the city cannot legislate group homes out of the city. She stated language in the housing policy directs the city to follow federal housing laws and prevent discrimination. Mr. Jeff Alger, community development specialist, pointed out that both Minneapolis and St. Paul are first class cities and are permitted to restrict the number of group homes within a quarter mile. He stated both cities have elected not to enforce the rule. He noted if a law came into effect that would limit group homes for New Hope, the housing policy would not impact such a law. Mr. McDonald questioned training opportunities. Mr. Sargent stated community development staff would be trained in official and fair housing laws, and training opportunities are available for staff and potentially for elected officials. Council expressed support for the policy and directed staff to place the item on a future agenda. EXTERIOR IMPROVEMENT REBATE PROGRAM Item 11.4 Mayor Hemken introduced for discussion item 11.4, Discuss exterior improvement rebate program. Mr. Jeff Alger, community development specialist, explained staff is requesting that the City Council consider implementation of an exterior improvement rebate program for single- and two-family homes. He stated in the last three years residents have been asked in the city services survey whether they would be interested in financial assistance for home repair and improvement projects if offered by the city, and last year 56% of participants responded affirmatively. He stated t he goal of the program could be to encourage homeowners to make improvements to the exterior of their home, specifically in areas that are visible from the street. Improving the curbside appeal of properties within the city would aid in improving the overall housing stock, instill confidence into neighborhoods, and increase home values. Staff believes an exterior improvement rebate program would complement the city’s existing housing programs and would be a good use of some general fund surplus and EDA funds. The cities of Blaine, Coon Rapids, and Fridley have implemented “Front Door Grant Programs” in recent years to incentivize improving the curb appeal of homes. New Hope’s pilot program could utilize some aspects of these programs with a heavy emphasis on improving the exterior appearance of a property as opposed to interior remodeling projects or the build-out of unfinished living space. Staff has prepared the framework of what an exterior improvement program might involve. The program could be adjusted after the first year depending on demand and feedback. He recommended allocating $100,000 from the general fund surplus to support implementation of the program in its first year. Any unused funds from the initial year City Council Work Session February 22, 2022 Page 4 of the program would be held over to provide funding in subsequ ent years. Funds in the EDA reserves could cover the costs of an exterior improvement rebate program in future years. He emphasized the goal of the program is to provide an incentive for the homeowner to go above and beyond what they may have originally planned to accomplish. He asked Council for feedback on the framework of the program. Council Member Hoffe asked how residents would learn about the program. Mr. Alger indicated the city would work with the communications coordinate to advertise the new program in various ways (city newsletter, website, flyers, social media posts). Mr. Alger stated if Council is supportive of a program, he would present a draft for formal approval at a future EDA meeting. He stated decisions need to be made regarding whether there would be eligibility restrictions based on income, home value, or age of home. Mayor Hemken asked whether the program would include driveway repair or replacement. Mr. Alger stated a repair or replacement would not be eligible; however, an upgrade from a gravel driveway to asphalt, concrete or brick pavers would qualify. He noted the goal of the program is for homeowners to make visible improvements; it is not intended for general maintenance issues. Director Sargent indicated many of the improvements made at Fridley and Coon Rapids were for driveway improvements. Mayor Hemken stated New Hope’s program could possibly be expanded in the future to include driveway improvements if there is a high demand for it. Council Member London stated although he supports beautification of the city, he does not support an exterior improvement rebate program through the use of tax dollars. Mr. Sargent noted a 25% rebate may be sufficient incentive to residents to undertake improvements that might not have otherwise taken place. Council Member Isenberg indicated the program could be instituted and phased out if it is not successful. Mr. Kirk McDonald, city manager, stated the guidelines must be as well defined as possible including the types of qualifying projects. The majority of the Council was supportive of creating an exterior improvement rebate program with an initial funding of $100,000.