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022723 EDA Meeting Packet EDA MEETING City Hall, 4401 Xylon Avenue North Monday, February 27, 2023 President Kathi Hemken Commissioner John Elder Commissioner Andy Hoffe Commissioner Michael Isenberg Commissioner Jonathan London 1. Call to order – EDA Meeting of February 27, 2023 2. Roll call 3. Approval of Minutes: • December 12, 2022 4. Resolution approving purchase and redevelopment agreements with Great Buy Homes, Inc. for the sale of 4201 and 4205 Boone Avenue North (improvement project no. 1081) 5. Resolution approving contract with Nitti Rolloff Services Inc. for hazardous material abatement, disposal of items throughout yard and within buildings, tree removal, demolition of site improvements, well sealing, site grading, and installation of utility improvements at 3611 Louisiana Avenue North (improvement project no. 1065) 6. Adjournment EDA Meeting   Page 1 December 12, 2022  City of New Hope  4401 Xylon Avenue North  New Hope, Minnesota 55428    EDA Minutes December 12, 2022  Regular Meeting City Hall      CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to  order at 8:41 p.m.    ROLL CALL Present:          Kathi Hemken, President  John Elder, Commissioner  Andy Hoffe, Commissioner  Michael Isenberg, Commissioner  Jonathan London, Commissioner     Staff Present:      Tim W. Hoyt, Acting City Manager  Brandon Bell, CD Coordinator/Management Analyst  Dan Boyum, City Engineer  Rich Johnson, Director of HR/Admin Services  Valerie Leone, City Clerk  Susan Rader, Director of Parks and Recreation  Pete Stanley, Police Sergeant  Bernie Weber, Director of Public Works  Stacy Woods, Assistant City Attorney    APPROVAL OF  MINUTES  Item 3    Motion was made by Commissioner Hoffe, seconded by Commissioner London,  to approve the minutes of November 14, 2022. All present voted in favor. Motion  carried.    2023 HRA Levy  Item 4  President Hemken introduced for discussion EDA Item 4, Resolution authorizing  the final HRA levy pursuant to Minnesota Statutes, Section 469.033, subdivision 6  and approval of a final budget for fiscal year 2023.    Mr. Tim Hoyt, acting executive director, stated this resolution approves the 2023  HRA levy of $437,850 to support the scattered site housing program and other  redevelopment efforts. This levy is adopted separate from the city’s tax levy.    Commissioner London stated he is hopeful that private businesses will eventually  undertake redevelopment efforts to reduce the city’s financial commitment.     RESOLUTION 2022‐09  Item 4  Commissioner Elder introduced the following resolution and moved its adoption  “RESOLUTION AUTHORIZING THE FINAL HRA LEVY PURSUANT TO  MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND  APPROVAL OF A FINAL BUDGET FOR FISCAL YEAR 2023.” The motion for  the adoption of the foregoing resolution was seconded by Commissioner Isenberg,  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  EDA Meeting   Page 2 December 12, 2022  passed and adopted, signed by the president which was attested to by the  executive director.    ADJOURNMENT Motion was made by Commissioner Isenberg, seconded by Commissioner Elder,  to adjourn the meeting. All present voted in favor. Motion carried. The New Hope  EDA adjourned at 8:43 p.m.    Respectfully submitted,    Valerie Leone, City Clerk    I:\RFA\COMM DEV\2023\EDA\4201 Boone Ave N\Q ‐ 4201 & 4205 Boone Ave N Lot Sale 02‐27‐23.docx    Request for Action  February 27, 2023    Approved by: Tim Hoyt, Acting 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 agreements with Great Buy Homes, Inc. for the sale of 4201  and 4205 Boone Avenue North (improvement project no. 1081)  Requested Action  Staff requests that the Economic Development Authority conduct a public hearing and approve a resolution  approving the sale of the scattered site lots located at 4201 and 4205 Boone Avenue North to Great Buy 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 4201 Boone Avenue North for  $245,000 in June of 2022, as part of the city’s scattered site housing program. Demolition work and utility  improvements were completed in the fall of 2022 and the tax‐exempt property was split into two parcels in  order to accommodate the construction of two new homes. A Request for Proposals (RFP) marketing the lots  was sent to more than 40 builders on December 8, 2022. The non‐negotiable minimum lot sale price was set at  $75,000 per lot ($150,000 total) 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 homes must be owner‐occupied,  single‐family homes. The occupancy requirement applies to the first buyer for period of two years. It did not  identify a preferred home style for the lots but required that builders agree to construct homes on both lots.  The RFP included an attachment listing homes in the city that have sold for $450,000 or more since January 1,  2021, and an attachment listing the highest valued previous scattered site projects.    Proposals were due on January 20, 2023. The EDA received one proposal, submitted by Great Buy Homes. The  EDA normally receives between two and five proposals, with an average of three proposals with each RFP. It  received five proposals on the last two lots that were marketed. Staff spoke with several builders who elected  not to submit proposals, citing concerns about the housing market and interest rates and/or the location of the  lots. The proposal from Great Buy Homes includes two split level entry homes with projected sale prices of  $475,000 to $480,000 for each home. Great Buy Homes is offering $161,000 total for the two lots. The homes  have identical floorplans with 2,537 square feet of finished space, five bedrooms, and three bathrooms. The  home on the south lot includes a walk‐out basement with a patio whereas the home on the north lot does not.  The homes feature front porches, garage doors and front doors with windows, address numbers built into the  façade, and a large amount of cultured stone. The front elevations differ from each other, providing some  variety in the appearance of the homes that will be side‐by‐side. Additional cultured stone has been added to  the two‐stall garage on the home to the south as well as the area around the front door on the home to the  north. Both homes include three‐stall garages, master bedrooms with walk‐in closets, granite/quartz  countertops and center islands in the kitchens and vaulted ceilings.  Agenda Section EDA Item Number  4    Request for Action, Page 2    The base characteristics and attributes of the proposal are summarized as follows:     Great Buy Homes  Lot purchase price $80,500 per lot ($161,000 total)  Projected sale price $475,000 to $480,000 per home ($950,000 to $960,000 total)  Design Split level  Finished Space 2,537 SF  Bedrooms 5 (3 on upper level; 2 in lower level)  Bathrooms 3 (2 full; 1 ¾)  Garage 3‐stall with glass inserts  Façade  Front porch   Address numbers built into façade   Shakes and board and batten siding   Front door with windows & sidelights   South home: Cultured stone on entire 2‐stall garage and lower 1/3  of 1‐stall garage and lower 1/3 of home   North home: Cultured stone on lower 1/3 of garage/home & entire  area behind front porch  Screening  6’ tall arborvitae trees to be planted 8’ apart along 42nd Avenue  North and along north property line of north lot  Other  Upgraded windows with soundproofing glass   Sound proofing materials on walls facing Boone and 42nd avenues   Vaulted ceiling   Granite/quartz kitchen countertops   1 walk‐in closet, upper level   Driveway turnaround  Upgrade Checklist 26 of 45 checked    Experience with Recommended Builder  Great Buy Homes is a mid‐sized custom home builder based out of Anoka. The city has sold eight lots to the  builder over the past six years. Each of the homes has sold for higher than the builder’s projected sale price.  Projected sale prices, actual sale prices, and county assessed values as of January 2, 2022, are as follows:    Address Builder’s Projected  Sale Price  Actual Sale Price  & Year  2022 Hennepin County  Assessed Value  5400 Yukon Ave N $285,000 $297,000 (2017) $359,000  6065 Louisiana Ave N $320,000 $325,000 (2018) $386,000  6067 Louisiana Ave N $320,000 $323,900 (2018) $435,000  7215 62nd Ave N $325,000 $350,821 (2019)  $435,000 (2022)  $411,000  5353 Oregon Ave N $350,000 $385,750 (2021) $370,000  5355 Oregon Ave N $350,000 $389,921 (2020)  $430,000 (2022)  $404,000  4215 Louisiana Ave N $380,000 $435,000 (2021) $458,000  4637 Aquila Ave N $445,000 $460,000 (2022) Under construction    Request for Action, Page 3    Cost & Tax Impact of Improvements  It is anticipated that expenses associated with the project would be approximately $344,888. Revenue from the  sale of the lots would be $161,000, resulting in an estimated net loss of $183,888. The previously tax‐exempt  parcel would become two taxable properties. If the combined value of the two new properties was $950,000 in  2024, it is estimated that total taxes paid to the city in 2025 would increase by $5,700 as compared to those that  were payable to the city in 2023. Property values and classifications are established on January 2 of each year  for assessment purposes. This value is used to determine property taxes that will be paid the following year.  For example, the taxable market value for a property on January 2, 2022, is used for taxes that are payable in  2023.    Old House New Houses  Taxable Market Value 2022,  Payable 2023  Projected Taxable Market  Value 2024, Payable 2025  Change  $0 $950,000 $950,000        Taxes Allocated to City 2022,  Payable 2023  Taxes Allocated to City 2024,  Payable 2025  Change  $0 $5,700 $5,700    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  $(183,888.00) ‐100.00%  1 (payable 2025) $5,700.00   $(178,188.00) ‐96.90%  5 (payable 2029) $30,262.07   $(153,625.93) ‐83.54%  10 (payable 2034) $65,344.11   $(118,543.89) ‐64.47%  15 (payable 2039) $106,013.81   $(77,874.19) ‐42.35%  20 (payable 2044) $153,161.13   $(30,726.87) ‐16.71%  25 (payable 2049) $207,817.81    $23,929.81  13.01%  30 (payable 2054) $271,179.87    $87,291.87  47.47%    The estimated ROI for the project over 30 years is 47.47% and the estimated Internal Rate of Return (IRR) for  the project over 30 years is 2.33% (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 homes, 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 housing 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(s).      Request for Action, Page 4    Development Agreement and Next Steps  Staff worked with the assistant city attorney to draft a resolution and two Purchase and Redevelopment  Agreements for the sale of the lots. The agreements ensure that the provisions set forth in the RFP will be met  and sets the combined purchase price of the lots at $161,000. The agreements included in the attachments are  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 homes must be completed within a year of the closing date.  Funding  Funding for this project would come from the 2022 EDA budget. As a result of the implementation of a new  HRA levy, the city budgeted $500,000 for scattered site projects in 2022.    Project (2022 Budget) Estimated Net Cost  4201 Boone Ave N $183,888.00  3611 Louisiana Ave N $169,819.00  5306 Rhode Island Ave N $166,072.00  Total $519,779.00     Annual Budget (2022) $500,000.00  Under/Over Budget ($19,779.00)    As discussed when the acquisition of 3611 Louisiana Avenue North was approved, the three projects that were  approved in 2022 put the EDA slightly over budget for the year, however, the city did not spend the $159,301  it had committed to a scattered site project at 4215 Nevada Avenue North in 2021. That project did not come to  fruition, allowing for those funds to be used on other projects. Additionally, the city received about $4,118 in  interest (after subtracting legal fees) when refunded its winning bid from the 3611 Louisiana Avenue North  sheriff’s sale.  Recommendation  Staff recommends that the EDA conduct a public hearing and approve a resolution approving the sale of the  scattered site lots located at 4201 and 4205 Boone Avenue North to Great Buy Homes.  Attachments   Resolution   Purchase and Redevelopment Agreement for 4201 Boone Avenue North   Purchase and Redevelopment Agreement for 4205 Boone Avenue North   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. 23-___ RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENTS WITH GREAT BUY HOMES, INC. FOR THE SALE OF 4201 AND 4205 BOONE AVENUE NORTH (IMPROVEMENT PROJECT NO. 1081) 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 4201 Boone Avenue North, New Hope, MN, P.I.D. 18-118-21-21-0107, and legally described as follows: Lot 3, Block 1, MENNONITE BRETHERN ADDITION, Hennepin County, Minnesota, which was recently split into the following two separate lots pursuant to an administrative lot split with Hennepin County: The North 82.28 feet of Lot 3, Block 1, MENNONITE BRETHERN ADDITION, Hennepin County, Minnesota; and (PID 18-118-21-21-0114; 4205 Boone Ave. N., New Hope, MN) That part of Lot 3, Block 1, MENNONITE BRETHERN ADDITION, Hennepin County, Minnesota lying South of the North 82.28 feet thereof. (PID 18-118-21-21-0115; 4201 Boone Ave. N., New Hope, MN) (Both parcels shall be referred to herein as the “Property”) Registered Torrens Property: Certificate of Title No. 1547526 as evidenced by the warranty deed recorded with the Hennepin County Registrar of Title’s Office on July 15, 2022, as Document No. 5959697; and WHEREAS, the EDA purchased the Property with the intention of razing the existing house and all site improvements and dividing the Property into 2 separate lots in preparation for the sale to a builder to construct two new single family homes; 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 Great Buy Family Homes, Inc., a Minnesota corporation (“Great Buy”) regarding the sale and redevelopment of the Property; and WHEREAS, the EDA arrived at an agreement with Great Buy to sell the Property for the total purchase price of $161,000.00 for the construction of 2 single family homes according to the plans submitted by Great Buy and upon all of the terms set forth in the RFP; and WHEREAS, the total purchase price of $161,000 is split into the following two parts, one for each subdivided lot: 4205 Boone Ave. N. – PID 18-118-21-21-0114 - $83,500 (“4205 Parcel”) 4201 Boone Ave. N. – PID 18-118-21-21-0115 - $77,500 (“4201 Parcel”) WHEREAS, the EDA has accepted Great Buy’s offer and has presented two draft Purchase and Redevelopment Agreements for the Property to Great Buy for its review, copies of which are attached hereto as Exhibit A (“Purchase and Redevelopment Agreements”) and incorporated herein by reference; and WHEREAS, it is in the best interest of the EDA to sell the Property to Great Buy for the total sum of $161,000.00 ($83,500 for the 4205 Parcel and $77,500 for the 4201 Parcel) in order for Great Buy to redevelop and build two new single family homes 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 Agreements, 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 GREAT BUY HOMES, INC., for the total purchase price of $161,000 ($83,500 for the 4205 Parcel and $77,500 for the 4201 Parcel), for the construction of 2 single family homes with other terms and conditions as set forth in the Purchase and Redevelopment Agreements attached hereto as Exhibit A, are approved subject to the review and approval by the City Attorney of the final language and exhibits to the Purchase and Redevelopment Agreements relating to the closing on the sale of the Property. 3. The EDA shall use due diligence for selling the Property to Great Buy for the construction of 2 single family homes with the design submitted by Great Buy, so as to return the Property to the tax rolls for the benefit of all taxing jurisdictions. 4. The President, Acting 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 Agreements. Dated the 27th day of February, 2023. ____________________________________ Kathi Hemken, President Attest: _____________________________ Tim Hoyt, Acting Executive Director Exhibit A Purchase and Redevelopment Agreements See attached. P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11449 4201 Boone Ave N\Resolution Approving Sale.docx 1 PURCHASE AND REDEVELOPMENT AGREEMENT This Purchase and Redevelopment Agreement ("Agreement") is made by and between GREAT BUY 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 February ___, 2023. 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 4201 Boone Avenue North, New Hope, MN 55428, PID 18-118-21-21-0115 legally described on the attached Exhibit A (the “Property”). 1. Purchase Price. The purchase price for the Property is Seventy Seven Thousand Five Hundred and No/100 Dollars ($77,500.00) (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 Seventy Five Thousand Five Hundred and No/100 Dollars ($75,500.00) 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 the 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 home described in paragraph 10 below. If the soil is determined to be unacceptable Buyer may rescind this Agreement by written notice to Seller, in which case the Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer. b. Buyer agrees the first sale of the home constructed 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 primary residence. To insure the intent of the parties that the home constructed on the Property is purchased by owner- occupants, Buyer will record restrictive covenants and an 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. 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 agreements upon the issuance of a certificate of occupancy for the construction of the home on the Property and upon the receipt by the EDA of an affidavit signed by Buyer and the owner-occupants verifying owner-occupants’ intent to reside in the home as their primary residence in compliance with the restrictive covenants described herein in the form attached as Exhibit C. 3 c. Buyer will be constructing a single family home on the Property. 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 April 28, 2023 (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. a. The single family home described in this paragraph is referred to as the "Minimum Improvements.” 5 b. The Minimum Improvements shall consist of a 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 February 27, 2023, attached as Exhibit F. c. Construction of the Minimum Improvements must be substantially completed within one (1) year following Closing. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of New Hope building inspector. d. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of Buyer to construct such Minimum Improvements (including the date for completion thereof), Seller will furnish Buyer with a Certificate of Completion for such improvements. Such certification by Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the Deed with respect to the obligations of Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof. The certificate provided for in this paragraph of this Agreement shall be in such form as will enable it to be recorded in the Hennepin County Registrar of Titles Office and other instruments pertaining to the Property. If Seller shall refuse or fail to provide any certification in accordance with the provisions of this paragraph, Seller shall, within thirty (30) days after written request by Buyer, provide Buyer with a written statement, indicating in adequate detail in what respects Buyer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of Seller for Buyer to take or perform in order to obtain such certification. e. Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (i) Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a “Transfer”), without the prior written approval of Seller. The term "Transfer" does not include encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable Buyer or any successor in interest 6 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 home, (b) it will not seek exemption from real estate taxes on the Property under State law, and (c) it will not transfer or permit transfer of the Property to any entity whose ownership or operation of the Property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of New Hope or Seller in accordance with this Agreement). The covenants in this paragraph run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for at least 30 years after the Date of Closing. g. Buyer shall comply with all recommendations of the City Engineer. h. Buyer’s construction plans shall be approved by the City Building Official. 10. Revesting Title in Seller upon 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 Tim Hoyt, Acting 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: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 195th Avenue NW Anoka, MN 55303 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: February____, 2023 By: _______________________________ Tim Hoyt Its: Acting Executive Director Dated: February____, 2023 BUYER: GREAT BUY HOMES, INC. By: ________________________________ Glenn Hammer Its: President Dated: February ____, 2023 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of February, 2023, by Kathi Hemken and Tim Hoyt, the President and Acting 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 February, 2023, by Glenn Hammer, the President of GREAT BUY 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 That part of Lot 3, Block 1, MENNONITE BRETHERN ADDITION, Hennepin County, Minnesota lying South of the North 82.28 feet thereof. (PID 18-118-21-21-0115; 4201 Boone Ave. N., New Hope, MN) (“Property”) Registered Torrens Property: Certificate of Title No. 1547526 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 1 RESTRICTIVE COVENANTS THESE RESTRICTIVE COVENANTS (“Agreement”) dated effective the ____ day of ____________, 2023, by and between the City of New Hope, a Minnesota municipal corporation (“City”) and GREAT BUY HOMES, INC., a Minnesota corporation (“Great Buy”). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between the City and Great Buy dated effective February ___, 2023 (“Purchase Agreement”), Great Buy purchased the real property located at 4201 Boone 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 Minnesota (“EDA ”), which property is legally described on the attached Exhibit A (“Property”) which purchase closed on ___________, 2023; and WHEREAS, Great Buy has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and Great Buy have agreed Great Buy 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 Great Buy have agreed the City may levy a $20,000.00 assessment against the Property prior to Great Buy’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 Great Buy. 2 NOW THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, Great Buy agrees as follows: AGREEMENT 1. Restrictive Covenants Great Buy 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 Great Buy 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 Great Buy 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 Great Buy 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 ____________, 2024; and/or (b) if Great Buy sells the Property with the completed home to a non-owner-occupant in violation of paragraph 1(a) above. Further, Great Buy 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 Great Buy Great Buy 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 Great Buy 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. Great Buy’s Successors This Agreement shall not be terminated by: a) Voluntary dissolution of Great Buy or any parent, subsidiary or successor of Great Buy; b) Merger whereby Great Buy (or such parent, subsidiary or successor of Great Buy) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of Great Buy. 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: Tim Hoyt 4401 Xylon Avenue North New Hope, MN 55428 thoyt@newhopemn.gov 4 If to Great Buy: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 195th Avenue NW Anoka, MN 55303 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 Great Buy 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: Acting City Manager Dated: _______________, 2023 GREAT BUY HOMES, INC. By: _______________________________ Glenn Hammer Its: President Dated: _______________, 2023 STATE OF MINNESOTA COUNTY OF HENNEPIN }ss. The foregoing instrument was acknowledged before me this ____ day of _________, 2023, by Tim Hoyt, the Acting 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 ___________, 2023, by Glenn Hammer, the President of GREAT BUY 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 That part of Lot 3, Block 1, MENNONITE BRETHERN ADDITION, Hennepin County, Minnesota lying South of the North 82.28 feet thereof. (PID 18-118-21-21-0115; 4201 Boone Ave. N., New Hope, MN) P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11449 4201 Boone Ave N\Restrictive Covenant - 4201 Boone Ave N.docx 15 Exhibit D Assessment Agreement 1 ASSESSMENT AGREEMENT THIS ASSESSMENT AGREEMENT (“Agreement”) dated effective as of the ____ day of __________, 2023, by and between the City of New Hope, a Minnesota municipal corporation (“City”) and GREAT BUY HOMES, INC., a Minnesota corporation (“Great Buy”). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between City and Great Buy dated effective February ___, 2023 (“Purchase Agreement”) Great Buy purchased the real property located at 4201 Boone 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 Minnesota (“EDA”), which property is legally described on the attached Exhibit A (“Property”) which purchase closed on ____________, 2023; and WHEREAS, Great Buy has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and Great Buy have agreed Great Buy 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 Great Buy have further agreed the City may levy a $20,000.00 assessment against the Property prior to Great Buy’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 Great Buy hereby covenants and agrees with the City that the new home on the Property shall be fully completed on or before ____________, 2024. Fully completed shall mean the Property shall be improved with a new single-family house. 2 2. Agreement to Assessment Great Buy 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 __________, 2024; (b) if Great Buy 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, Great Buy 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 Great Buy Great Buy 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. Great Buy’s Successors This Agreement shall not be terminated by: a) The voluntary dissolution of Great Buy or any parent, subsidiary or successor of Great Buy; b) Merger whereby Great Buy (or such parent, subsidiary or successor of Great Buy) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of Great Buy. 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: Tim Hoyt 4401 Xylon Avenue North New Hope, MN 55428 thoyt@newhopemn.gov 3 If to Great Buy: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 195th Ave. NW Anoka, MN 55303 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 Great Buy 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: Acting City Manager Dated: ___________, 2023 GREAT BUY HOMES, INC. By: _______________________________ Glenn Hammer Its: President Dated: __________, 2023 STATE OF MINNESOTA COUNTY OF HENNEPIN }ss. The foregoing instrument was acknowledged before me this ____ day of __________, 2023, by Tim Hoyt, the Acting 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 ___________, 2023, by Glenn Hammer, the President of GREAT BUY 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\99-11449 4201 Boone Ave N\Assessment Agreement - 4201 Boone Ave N.docx 5 Exhibit A Legal Description That part of Lot 3, Block 1, MENNONITE BRETHERN ADDITION, Hennepin County, Minnesota lying South of the North 82.28 feet thereof. (PID 18-118-21-21-0115; 4201 Boone Ave. N., New Hope, MN) 16 Exhibit E Request for Proposal (“RFP”) Guidelines See attached. City of New Hope, Minnesota Request For Proposals (RFP) – 4201/4205 Boone Avenue North Date: December 8, 2022 From: The Economic Development Authority (EDA) in and for the city of New Hope Subject: Request for proposals for construction of two new single-family homes at 4201 and 4205 Boone Avenue North Overview: The city of New Hope EDA owns the adjacent properties located at 4201 and 4205 Boone Avenue North, New Hope, MN 55428 (PIDs 18-118-21-21-0115 and 18-118-21-21-0114). The EDA is requesting proposals from builders to purchase the two vacant lots for the construction of two new single-family homes. The lots are 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. The lot was then split into two parcels. Enclosed, please find the proposal form and specifications for submitting a proposal. Minimum Lot Price: The lots are being offered at a minimum base price of $75,000 each ($150,000 total). The EDA will consider higher offers for the lots; however, submitting a higher offer does not guarantee selection of a proposal. Submission: Interested builders must submit the enclosed Proposal 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. Proposals must be submitted to Jeff Alger, Community Development Specialist and Jeff Sargent, Director of Community Development. City of New Hope Community Development Department Attention: Jeff Alger and Jeff Sargent 4401 Xylon Avenue North New Hope, MN 55428 jalger@newhopemn.gov, jsargent@newhopemn.gov Deadline: Proposals must be submitted using the enclosed form and received no later than January 20, 2023, at 1:00 p.m. City staff will review the proposals and make a recommendation to the EDA. It is anticipated that the EDA will select a proposal at the February 27, 2023, meeting. Construction of the new homes must be completed in full no later than one (1) year after the closing on the purchase of the lots. City of New Hope, Minnesota Proposal Form Property Owner: City of New Hope Economic Development Authority (EDA) Property Address: 4201 & 4205 Boone Avenue North, New Hope, MN 55428 Property Identification Numbers: 18-118-21-21-0115 & 18-118-21-21-0114 Minimum Lot Price: These lots are being offered at a minimum base price of $75,000 each ($150,000 total). The EDA will consider higher offers for the lots; 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 the two lots for $____________________ ($150,000 minimum) and build two new single-family homes 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 redevelopment agreement and provide $4,000 earnest money for the lots within one week of approval. Only after such an agreement is signed will 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 homes may be built speculatively or for specific buyers. 3. The city is interested in proposals that will generate the highest valued, owner occupied, single-family homes. Owner occupancy restrictions will be documented in the purchase and redevelopment agreement and secured with a restrictive covenant recorded with 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 specified for the lots. Preference will be given to proposals with the most finished square footage, the most interior upgrades, and the highest quality exterior materials. 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 redevelopment 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 $4,000 nonrefundable earnest money deposit. Closing on the purchase of the lots must take place within 60 days of final EDA approval. The buyer will be responsible for paying the following costs associated with the purchase: • Preparation and issuance of the title commitment. • 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. Proposals must include homes on both lots. Construction of the new homes must be completed within one (1) year of closing on the purchase of the lots. The properties will remain tax exempt through the end of 2023. 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 within the right-of-way or utility easements. b. The builder shall be responsible for any expenses associated with connecting the houses to private utilities, including SAC fees for the new lot. c. Municipal water connections are available on the east side of the lots as shown on the Proposed Utility Services figure and marked onsite. The EDA coordinated replacing the existing curb stop box (north lot) and installing a new, second curb stop box (south lot) in conjunction with demolition work. The builder’s plumber will be responsible for removing the riser when hooking up water from the north curb stop box to the home (4205 Boone Avenue North). d. Municipal sanitary sewer connections are available on the east side of the lots as shown on the Proposed Utility Services figure and marked onsite. The EDA coordinated lining of the existing service (north lot) from the termination point all the way to the main line and installation of a new connection. 2. Building Standards and Design Guidelines a. All site improvements shall comply with the New Hope City Code. b. Each of the houses shall have at least three (3) finished bedrooms and two (2) finished bathrooms. c. The houses shall have attached garages that will accommodate a minimum of two (2) vehicles. Three (3) stall garages are preferred. d. The designs 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 decks 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. The use of soundproofing construction materials is recommended in areas that are adjacent to Boone and 42nd avenues and should be denoted on plans. City of New Hope, Minnesota Specifications (continued) h. 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. i. Exterior materials (siding, soffit, doors, and windows) shall be low maintenance. The use of brick or stone accents and incorporation of address numbers into 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. j. Driveways for the new homes must be fully paved from the street to the garage with a slope of no more than 10%. A shared driveway for the two lots will not be permitted. The driveway for the south lot should be placed as far north as possible to make accessing Boone Avenue North as easy as possible (garage to the north/on the right). It is recommended that a turnaround be incorporated into the driveway design. Driveways are not allowed within three (3) feet of any property line 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. The existing curb cut on 42nd Avenue North will be replaced with new curbing by city staff by September 2023. The builder will be responsible for adjusting the existing curb cut on Boone Avenue North to meet setback requirements. New curb cuts and curbing must meet requirements of the City Code and must be approved by the Public Works Department. See the 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. Setbacks Front Yard (east) Rear Yard (west) Interior Side Yard Attached Garage Interior Side Yard House Corner Side Yard House South lot (4201) 30’ 25’ 5’ (north line) N/A 25’ (south line) North lot (4205) 30’ 25’ 5’ (north or south line) 10’ (north or south line) N/A City of New Hope, Minnesota Specifications (continued) 4. Landscaping a. The intersection of Boone and 42nd avenues is one of the most prominent locations in the city. The minimum lot price has been reduced on the parcels with the goal of increasing the number of trees and amount of landscaping to be provided by the builder. The properties are also tax exempt through the end of 2023. b. Trees near the southeast corner of the lot shall remain in place unless they are replaced by the builder. c. 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. The area between the lower and upper retaining wall at southeast corner of the site must also be irrigated with an underground irrigation system. d. A minimum of two (2) large-species deciduous shade trees shall be planted on each lot. Trees must be a minimum of two (2) inches in diameter. A list of prohibited trees is attached. e. A berm was added along the south property line when demolition and grading occurred and shall remain in place. Builders should provide additional screening/landscaping (arborvitae, evergreen trees, decorative fencing, etc.) along the north and south property lines to aid in screening the homes from the parking lot to the north and 42nd Avenue North to the south. The RFP evaluation process will involve a review of landscaping plans and submissions that include such plans will be viewed favorably. Because the property is one of the more prominent locations in the city, builders are also encouraged to incorporate the area between and around the retaining walls at the southeast corner of the site into their landscaping plans. Additional screening measures beyond these requirements are encouraged. f. Foundation plantings with landscaping rock or wood chips and edging around the foundation of the home are preferred. 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 both houses within one (1) year of closing on the purchase of the lots. 6. Required Attachments by Builder • Upgrade checklist (attached). • Site plan showing the layout of the homes on the lots. Include dimensions and setbacks (completed survey is attached). • Floor plans with dimensions. Clearly indicate square footages of each floor. • List overall square footage. • List total finished square footage. • Elevations specifying types of exterior materials (color elevations preferred). • Description of the interior trim package, including flooring. • Anticipated sale price of the homes. • Pictures of similar homes (if available). • Landscaping plan (encouraged). Attachments • Recent home sales • Previous scattered site projects • Upgrade checklist • Survey • Photos • Backfill compacting testing results • Utility services figure • Well sealing certificate • Driveway and curbing specifications (STR-10A and STR-30) • Prohibited tree list City of New Hope, Minnesota Recent Home Sales The following homes in New Hope sold for more than $450,000 since January 1, 2021. Address Price Date Finished SF Beds Baths Year Built 8809 35th Ave N $655,000 9/2021 3,065 4 4 2006 8800 35th Ave N $640,000 4/2022 3,047 4 4 2016 5213 Pennsylvania Ave N $575,000 8/2022 3,102 5 4 2022 8057 55th Ln N $555,000 9/2021 3,307 5 4 2016 8045 55th Ln N $550,000 10/2021 3,787 5 4 2016 5507 Wisconsin Ave N $540,000 8/2021 3,501 4 4 2016 7328 51st Ave N $531,217 1/2022 2,434 3 3 2021 8028 55th Ln N $530,000 9/2021 2,695 4 3 2016 3400 Ensign Ave N $515,000 10/2022 2,471 5 3 2013 8111 60th Ave N $500,000 5/2022 3,442 6 4 1966 7202 51st Ave N $490,000 6/2022 2,306 3 3 2021 7320 51st Ave N $484,922 3/2021 2,208 3 3 2021 7319 51st Ave N $479,900 12/2021 2,339 3 3 2021 5431 Virginia Ave N $476,000 6/2022 2,432 4 3 2015 5510 Virginia Ave N $465,000 8/2022 2,778 4 4 2017 7327 51st Ave N $460,000 1/2021 2,339 3 3 2021 9101 36th Ave N $460,000 10/2021 3,564 3 4 2004 4637 Aquila Ave N $460,000 7/2022 2,537 5 3 2022 7405 51st Ave N $456,861 3/2021 2,029 3 3 2021 3517 Decatur Ct N $456,000 10/2021 2,269 4 4 1995 4301 Flag Ave N $465,000 3/2022 2,832 5 3 1978 7116 51st Ave N $451,557 12/2021 2,354 3 3 2021 7406 51st Ave N $450,755 4/2021 2,284 3 3 2021 8401 Meadow Lake Rd N $450,000 5/2022 1,948 3 2 1966 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 sale prices. Address Price Date Finished SF Bed/Bath Builder 5213 Pennsylvania Avenue North $575,000 8/2022 3,102 5/4 Donnay Homes 5431 Virginia Avenue North $476,000 $245,000 6/2022 11/2015 2,432 4/3 Novak-Fleck 4637 Aquila Avenue North $460,000 7/2022 2,537 5/3 Great Buy Homes 7215 62nd Avenue North $435,000 $350,821 10/2022 6/2019 2,284 4/3 Great Buy Homes 4215 Louisiana Avenue North $430,650 7/2021 2,537 5/3 Great Buy Homes 5355 Oregon Avenue North $430,000 $389,921 11/2022 11/2020 2,327 5/3 Great Buy Homes 3856 Maryland Avenue North $413,921 10/2019 3,102 5/4 Donnay Homes 4417 Nevada Avenue North $410,000 $363,869 11/2020 5/2017 2,329 4/3 Regal Homes 5201 Oregon Avenue North $408,320 4/2020 2,805 4/4 Novak-Fleck 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 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  Tray/inverted ceiling  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  Recessed lighting  Stone pillars  Underground irrigation system (required) General  Finished basement  Finished laundry room  Fireplace  Heated floors  Home office (room not classified as bedroom)  Recessed lighting (interior)  Smooth or knock-down ceilings  Solid core interior doors  Solid wood interior molding/trim  Soundproofing materials  Three-stall garage  Vaulted ceilings  Wood flooring Kitchen  Backsplash/tile on walls  Center island  Custom cabinets  Granite/quartz countertops  Stainless steel appliances Other  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________ HSSHVVCVHVS 88°50'56" E 145.09SOUTH 178.80N 87°28'15" W 145.2082.30100.0082.30S 88°50'56" E 145.0982.28P A R C E L AP A R C E L B96.50SOUTH 182.30F:\survey\mennonite brethern add\3-1\01 Surveying - 90187\01 CAD\01 Source\01 Survey Base.dwg1 OF 1SHEET NO.PROJECT: 90187CITY OF NEW HOPE4401 Xylon Ave. N.New Hope, MN 55428GRPSigned: ____________________________________________ Gregory R. Prasch Registration No. 24992Prepared this 17th day of November 2022.I certify that this plan, specification, or report was prepared by me or under my directsupervision and that I am a duly Licensed land Surveyor under the laws of the State ofMinnesota.FB No: 1117-48(763) 560-3093DemarcInc.comREVISION SUMMARYSURVEY FOR:DEVELOPMENT OF:TYPE OF SURVEY:ADMINISTRATIVELOT SPLIT4201 BOONE AVE. N. Existing Legal DescriptionLot 3, Block 1, MENNONITE BRETHERN ADDITION, Hennepin County, Minnesota.Zoning InformationLegendSCALE IN FEET0402060Miscellaneous NotesProperty Address: 4201 Boone Ave. N., New Hope, MN 55428PID No.: 18-118-21-21-0107Area of Parcel = 26,191 sq. ft.By graphic interpretation only, this property is in Flood Zone "X" (area of minimal flooding)per FEMA panel map number 27053C0192F, effective on 11/04/2016Title insurance commitment showing property description and any encumbrances of recordnot provided, survey subject to change.The only easements shown are from plats of record or information provided by client.Property located in Section 18, Township 118, Range 21, Hennepin County, MinnesotaBenchmark: Invert of sanitary manhole located on Boone Ave. opposite New Hope Churchbuilding.Elevation = 909.710 feet123456Property Zoned: R-1 Single Family Residential DistrictBuilding Setback Requirements (for residential) Front - 30 feet for Arterial or Collector Street (25' for local street) Side House - 10 feet Side Garage - 5 feet Rear - 25 feet Side Corner - 25 feet for Arterial or Collector Street (20' for local street)Maximum building coverage - not listedMaximum building height - 2 1/2 stories or 32 feet, whichever is greaterLot area: 9,500 sq. ft (for residential uses)Lot width: 75 feetCorner Lot width: 90 feetRefer to City Code for additional restrictions or allowances. Proposed Parcel DescriptionsPARCEL A: (area = 11,938 sq.ft)The North 82.28 feet of Lot 3, Block 1, MENNONITE BRETHERN ADDITION,Hennepin County, Minnesota.PARCEL B: (area = 14,252 sq.ft)That part of Lot 3, Block 1, MENNONITE BRETHERN ADDITION, Hennepin County,Minnesota lying South of the North 82.28 feet thereof. Proposed Easement DescriptionsEasement for drainage and utility purposes over, under and across the South 10.00feet of the North 92.28 feet of Lot 3, Block 1, MENNONITE BRETHERN ADDITION,Hennepin County, Minnesota except the West 5 feet and East 10 feet thereof.Easement for drainage and utility purposes over, under and across the East 25.00feet of the South 25.00 feet of Lot 3, Block 1, MENNONITE BRETHERNADDITION, Hennepin County, Minnesota.Easement for sidewalk and trail purposes over the South 10 feet of Lot 3, Block 1,MENNONITE BRETHERN ADDITION, Hennepin County, Minnesota.Denotes Found Iron MonumentDenotes Iron Monument SetBollardLightPower PoleHydrantSanitary ManholeStorm ManholeWater ManholeCatch BasinTelephone Pedestal RiserCable Pedestal RiserElectric Box or TransformerGas MainUnderground CommunicationsUnderground ElectricSanitary SewerStorm SewerWatermainOverhead Wiresrev. 11/23/2022 city comments Parcel A = 4205 Boone Avenue NorthParcel B = 4201 Boone Avenue North Scattered Site Housing Project - 4201 Boone Avenue North PROJECT: DATE: LAB NO: REPORT TO: COPIES TO: ATTN: FIELD TECH:REVIEWED BY: METHOD OF LAB TEST: METHOD OF FIELD TEST: LOCATION: DEPTH: Marc Carnahan DEPTH: LOCATION: LOCATION: DEPTH: LOCATION: DEPTH: LOCATION: DEPTH: LOCATION: DEPTH: LOCATION: DEPTH: LOCATION: DEPTH: See Photo 120.8 99.2% 98.0% 98.0% At Grade LAB RESULTS FIELD RESULTS DRY DENSITY PCF O.M.C. % 1. Job File 4201 Boone Avenue 122.4 8.5 DEPTH: 121.4 LOCATION: DEPTH:See Photo At Grade 10.4 Compaction Testing - Kevitt October 11, 2022 L-22077 DATETEST NO. 1 10/11 10.4 122.4 Pass 3335 Pennsylvania Avenue N Crystal, MN 55427 COMP. % REQ'D COMP. PASS/FAIL Kevitt Excavating COMP. % CONSTRUCTION ENGINEERING LABORATORY, INC. TESTING FOR QUALITY AND STRENGTH SP-SM w/Gravel 2 10/11 SP-SM w/Gravel LOCATION: SOIL FIELD COMPACTION SOIL TYPE CLASS.MOIST. % MAX. DRY DENSITY PCF Randy Juday Pass98.7% 9.4 ASTM D698 STANDARD PROCTOR ASTM D1557 MODIFIED PROCTOR ASTM D1556 SAND CONE ASTM D2922 NUCLEAR GAUGE 5661 International Parkway ♦ Minneapolis, Minnesota 55428 ♦ (763) 533-9534 ♦ marc_c@cel-inc.com SSSSHHROCKROCKHUCTVCHHHHGGGGGGGGGGGGG GGGGGGGGGGGGGGGGGGGGGlllll l>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>lllllllllllll8610>>>>>>Hlllllllll420486408"CIP9" VCP4"VCP3/4" COPPER12" CIP9"VCP9" VCP12" RCP>lllllDATEPROJ. NO.Plot Date: 08/10/2022 - 4:53pm Drawing name: R:\client\municipal\new_hope_ci_mn\Planning\2022\4201_boone_avenue_former_treehouse_property\CAD\Dwg\193805550_4201boone_XSXT.dwg Xrefs:733 Marquette Avenue, Suite 1000Minneapolis, MN 55402www.stantec.comPROPOSED UTILITY SERVICESCITY OF NEW HOPE, MN4201 BOONE AVENUE N LOT SPLIT8/10/2022193805550FIGURE 2N03060LEGENDPROPOSED SANITARY SEWER SERVICEPROPOSED WATER SERVICE W/. CURB STOP & BOXCURB STOP & BOX54THAVENUTILITY NOTES1 REMOVE EXISTING AND INSTALL NEW34"CURB STOP AND BOX. FREEZE SERVICE LINEPRIOR TO WORK.2 TELEVISE AND CIPP LINE EXISTING 4" VCPSANITARY SEWER SERVICE (APPROX. 20 LF FROMROW TO MAIN)3 INSTALL 4" PVC SANITARY SEWER SERVICEWITH WYE. EXTEND 20 LF @ MIN. 2.0%SLOPE AND INSTALL CAP. PATCH EXISTINGPAVEMENT, CURB AND SIDEWALK. STAMPLOCATION IN CURB.4 INSTALL 55 LF - 1" COPPER WATER SERVICEWITH 1" CURB STOP AND BOX.INSTALLATION SHALL BE VIA TRENCHLESSMETHOD (I.E. PNEUMAGOPHER). PATCHEXISTING PAVEMENT AND SIDEWALK.1342GENERAL NOTES1. NEW SERVICE LOCATIONS WILL BE VERIFIED INTHE FIELD BY OWNER. CONTRACTOR ISRESPONSIBLE FOR EXTENDING SERVICES FROMRIGHT-OF-WAY TO NEW HOMES.2. PROTECT ALL EXISTING TREES, UTILITIES,PAVEMENT, ETC. UNLESS OTHERWISE NOTED.3. BOONE AVE N PAVEMENT PATCH TO MATCHEXISTING WITH MINIMUM:1.5" SP 12.5 WEAR COURSE3.5" SP 12.5 BINDER COURSE3.0" SP 12.5 NON-WEAR COURSE±6" CLASS 5 AGGREGATE BASE(EXISTING AGGREGATE IS SALVAGEDRECLAIM MATERIAL)4. SIDEWALK PATCH TO MATCH EXISTING.5. UTILITY LOCATIONS AND ELEVATIONS AREAPPROXIMATE. CONTRACTOR TO FIELD VERIFYLOCATIONS AND ELEVATIONS.42NDAVEN(CSAH9)APPROXIMATE PROPOSEDHOUSE FOOTPRINT(TYP.)APPROXIMATEPROPOSEDDRIVEWAY LOCATIONEX. SAN MHRIM = 920.4 +/-INV. = 908.6 +/-BOONE AVE Nl>PROPOSED10' DRAINAGE ANDUTILITY EASEMENTPROPOSED25' X 25' DRAINAGE ANDUTILITY EASEMENTNOTE: 1" (NOT 3/4") 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 See attached. P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11449 4201 Boone Ave N\Purchase and Redevelopment Agreement - 4201 Boone Ave N - 18-118-21-21-0115.docx 1 Jeff Alger From:GLENN HAMMER Owner <glennhammer@q.com> Sent:Thursday, January 19, 2023 4:20 PM To:Jeff Alger Subject:Fw: 4201 & 4205 Boone Av Proposals Attachments:4201 & 4205 Boone Av Proposal.pdf We are excited for the opportunity to submit to you proposals for the properties located at 4201 and 4205 Boone Ave  N.We have included two plans which have proven to be very well received with a proven track record for strong sales.  With the real estate market quickly changing, we are committed to providing our very best product for the money.  In addition to our commitment to our buyers and providing them the very best product for the money we can, we are also deeply committed to continuing our long standing relationship with the city of New Hope and would love the opportunity to enhance an already amazing city with a couple more new homes.  If there are any questions or concerns we can address for you, please do not hesitate to contact us at any time. $475,000 to $480,000 Selling price  5 Large Bedrooms  3 Bathrooms  3 Car Garage  1403 sf Finished Main Floor  1134 sf Finished Basement  1537 sf TOTAL Finished  With gratitude‐  Glenn Hammer  Great Buy Homes  City staff correction: 2,537 SF 1 PURCHASE AND REDEVELOPMENT AGREEMENT This Purchase and Redevelopment Agreement ("Agreement") is made by and between GREAT BUY 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 February ___, 2023. 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 4205 Boone Avenue North, New Hope, MN 55428, PID 18-118-21-21-0114 legally described on the attached Exhibit A (the “Property”). 1. Purchase Price. The purchase price for the Property is Eighty Three Thousand Five Hundred and No/100 Dollars ($83,500.00) (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 One Thousand Five Hundred and No/100 Dollars ($81,500.00) 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 the 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 home described in paragraph 10 below. If the soil is determined to be unacceptable Buyer may rescind this Agreement by written notice to Seller, in which case the Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer. b. Buyer agrees the first sale of the home constructed 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 primary residence. To insure the intent of the parties that the home constructed on the Property is purchased by owner- occupants, Buyer will record restrictive covenants and an 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. 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 agreements upon the issuance of a certificate of occupancy for the construction of the home on the Property and upon the receipt by the EDA of an affidavit signed by Buyer and the owner-occupants verifying owner-occupants’ intent to reside in the home as their primary residence in compliance with the restrictive covenants described herein in the form attached as Exhibit C. 3 c. Buyer will be constructing a single family home on the Property. 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 April 28, 2023 (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. a. The single family home described in this paragraph is referred to as the "Minimum Improvements.” 5 b. The Minimum Improvements shall consist of a 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 February 27, 2023, attached as Exhibit F. c. Construction of the Minimum Improvements must be substantially completed within one (1) year following Closing. Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of New Hope building inspector. d. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of Buyer to construct such Minimum Improvements (including the date for completion thereof), Seller will furnish Buyer with a Certificate of Completion for such improvements. Such certification by Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the Deed with respect to the obligations of Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof. The certificate provided for in this paragraph of this Agreement shall be in such form as will enable it to be recorded in the Hennepin County Registrar of Titles Office and other instruments pertaining to the Property. If Seller shall refuse or fail to provide any certification in accordance with the provisions of this paragraph, Seller shall, within thirty (30) days after written request by Buyer, provide Buyer with a written statement, indicating in adequate detail in what respects Buyer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of Seller for Buyer to take or perform in order to obtain such certification. e. Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (i) Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a “Transfer”), without the prior written approval of Seller. The term "Transfer" does not include encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable Buyer or any successor in interest 6 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 home, (b) it will not seek exemption from real estate taxes on the Property under State law, and (c) it will not transfer or permit transfer of the Property to any entity whose ownership or operation of the Property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of New Hope or Seller in accordance with this Agreement). The covenants in this paragraph run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for at least 30 years after the Date of Closing. g. Buyer shall comply with all recommendations of the City Engineer. h. Buyer’s construction plans shall be approved by the City Building Official. 10. Revesting Title in Seller upon 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 Tim Hoyt, Acting 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: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 195th Avenue NW Anoka, MN 55303 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: February____, 2023 By: _______________________________ Tim Hoyt Its: Acting Executive Director Dated: February____, 2023 BUYER: GREAT BUY HOMES, INC. By: ________________________________ Glenn Hammer Its: President Dated: February ____, 2023 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of February, 2023, by Kathi Hemken and Tim Hoyt, the President and Acting 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 February, 2023, by Glenn Hammer, the President of GREAT BUY 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 The North 82.28 feet of Lot 3, Block 1, MENNONITE BRETHERN ADDITION, Hennepin County, Minnesota; and (PID 18-118-21-21-0114; 4205 Boone Ave. N., New Hope, MN) (“Property”) Registered Torrens Property: Certificate of Title No. 1547526 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 1 RESTRICTIVE COVENANTS THESE RESTRICTIVE COVENANTS (“Agreement”) dated effective the ____ day of ____________, 2023, by and between the City of New Hope, a Minnesota municipal corporation (“City”) and GREAT BUY HOMES, INC., a Minnesota corporation (“Great Buy”). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between the City and Great Buy dated effective February ___, 2023 (“Purchase Agreement”), Great Buy purchased the real property located at 4205 Boone 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 Minnesota (“EDA ”), which property is legally described on the attached Exhibit A (“Property”) which purchase closed on ___________, 2023; and WHEREAS, Great Buy has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and Great Buy have agreed Great Buy 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 Great Buy have agreed the City may levy a $20,000.00 assessment against the Property prior to Great Buy’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 Great Buy. 2 NOW THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, Great Buy agrees as follows: AGREEMENT 1. Restrictive Covenants Great Buy 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 Great Buy 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 Great Buy 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 Great Buy 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 ____________, 2024; and/or (b) if Great Buy sells the Property with the completed home to a non-owner-occupant in violation of paragraph 1(a) above. Further, Great Buy 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 Great Buy Great Buy 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 Great Buy 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. Great Buy’s Successors This Agreement shall not be terminated by: a) Voluntary dissolution of Great Buy or any parent, subsidiary or successor of Great Buy; b) Merger whereby Great Buy (or such parent, subsidiary or successor of Great Buy) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of Great Buy. 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: Tim Hoyt 4401 Xylon Avenue North New Hope, MN 55428 thoyt@newhopemn.gov 4 If to Great Buy: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 195th Avenue NW Anoka, MN 55303 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 Great Buy 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: Acting City Manager Dated: _______________, 2023 GREAT BUY HOMES, INC. By: _______________________________ Glenn Hammer Its: President Dated: _______________, 2023 STATE OF MINNESOTA COUNTY OF HENNEPIN }ss. The foregoing instrument was acknowledged before me this ____ day of _________, 2023, by Tim Hoyt, the Acting 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 ___________, 2023, by Glenn Hammer, the President of GREAT BUY 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 The North 82.28 feet of Lot 3, Block 1, MENNONITE BRETHERN ADDITION, Hennepin County, Minnesota; and (PID 18-118-21-21-0114; 4205 Boone Ave. N., New Hope, MN) P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11449 4201 Boone Ave N\Restrictive Covenant - 4205 Boone Ave N.docx 15 Exhibit D Assessment Agreement 1 ASSESSMENT AGREEMENT THIS ASSESSMENT AGREEMENT (“Agreement”) dated effective as of the ____ day of ________, 2023, by and between the City of New Hope, a Minnesota municipal corporation (“City”) and GREAT BUY HOMES, INC., a Minnesota corporation (“Great Buy”). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between City and Great Buy dated effective February ___, 2023 (“Purchase Agreement”) Great Buy purchased the real property located at 4205 Boone 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 Minnesota (“EDA”), which property is legally described on the attached Exhibit A (“Property”) which purchase closed on ____________, 2023; and WHEREAS, Great Buy has committed to constructing a new residential home on the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and Great Buy have agreed Great Buy 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 Great Buy have further agreed the City may levy a $20,000.00 assessment against the Property prior to Great Buy’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 Great Buy hereby covenants and agrees with the City that the new home on the Property shall be fully completed on or before _____________, 2024. Fully completed shall mean the Property shall be improved with a new single-family house. 2 2. Agreement to Assessment Great Buy 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 _____________, 2024; (b) if Great Buy 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, Great Buy 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 Great Buy Great Buy 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. Great Buy’s Successors This Agreement shall not be terminated by: a) The voluntary dissolution of Great Buy or any parent, subsidiary or successor of Great Buy; b) Merger whereby Great Buy (or such parent, subsidiary or successor of Great Buy) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of Great Buy. 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: Tim Hoyt 4401 Xylon Avenue North New Hope, MN 55428 thoyt@newhopemn.gov 3 If to Great Buy: GREAT BUY HOMES, INC. Attn: Glenn Hammer 5790 195th Ave. NW Anoka, MN 55303 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 Great Buy 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: Acting City Manager Dated: ______________, 2023 GREAT BUY HOMES, INC. By: _______________________________ Glenn Hammer Its: President Dated: _____________, 2023 STATE OF MINNESOTA COUNTY OF HENNEPIN }ss. The foregoing instrument was acknowledged before me this ____ day of __________, 2023, by Tim Hoyt, the Acting 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 ___________, 2023, by Glenn Hammer, the President of GREAT BUY 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\99-11449 4201 Boone Ave N\Assessment Agreement - 4205 Boone Ave N.docx 5 Exhibit A Legal Description The North 82.28 feet of Lot 3, Block 1, MENNONITE BRETHERN ADDITION, Hennepin County, Minnesota; and (PID 18-118-21-21-0114; 4205 Boone Ave. N., New Hope, MN) 16 Exhibit E Request for Proposal (“RFP”) Guidelines See attached. City of New Hope, Minnesota Request For Proposals (RFP) – 4201/4205 Boone Avenue North Date: December 8, 2022 From: The Economic Development Authority (EDA) in and for the city of New Hope Subject: Request for proposals for construction of two new single-family homes at 4201 and 4205 Boone Avenue North Overview: The city of New Hope EDA owns the adjacent properties located at 4201 and 4205 Boone Avenue North, New Hope, MN 55428 (PIDs 18-118-21-21-0115 and 18-118-21-21-0114). The EDA is requesting proposals from builders to purchase the two vacant lots for the construction of two new single-family homes. The lots are 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. The lot was then split into two parcels. Enclosed, please find the proposal form and specifications for submitting a proposal. Minimum Lot Price: The lots are being offered at a minimum base price of $75,000 each ($150,000 total). The EDA will consider higher offers for the lots; however, submitting a higher offer does not guarantee selection of a proposal. Submission: Interested builders must submit the enclosed Proposal 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. Proposals must be submitted to Jeff Alger, Community Development Specialist and Jeff Sargent, Director of Community Development. City of New Hope Community Development Department Attention: Jeff Alger and Jeff Sargent 4401 Xylon Avenue North New Hope, MN 55428 jalger@newhopemn.gov, jsargent@newhopemn.gov Deadline: Proposals must be submitted using the enclosed form and received no later than January 20, 2023, at 1:00 p.m. City staff will review the proposals and make a recommendation to the EDA. It is anticipated that the EDA will select a proposal at the February 27, 2023, meeting. Construction of the new homes must be completed in full no later than one (1) year after the closing on the purchase of the lots. City of New Hope, Minnesota Proposal Form Property Owner: City of New Hope Economic Development Authority (EDA) Property Address: 4201 & 4205 Boone Avenue North, New Hope, MN 55428 Property Identification Numbers: 18-118-21-21-0115 & 18-118-21-21-0114 Minimum Lot Price: These lots are being offered at a minimum base price of $75,000 each ($150,000 total). The EDA will consider higher offers for the lots; 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 the two lots for $____________________ ($150,000 minimum) and build two new single-family homes 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 redevelopment agreement and provide $4,000 earnest money for the lots within one week of approval. Only after such an agreement is signed will 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 homes may be built speculatively or for specific buyers. 3. The city is interested in proposals that will generate the highest valued, owner occupied, single-family homes. Owner occupancy restrictions will be documented in the purchase and redevelopment agreement and secured with a restrictive covenant recorded with 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 specified for the lots. Preference will be given to proposals with the most finished square footage, the most interior upgrades, and the highest quality exterior materials. 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 redevelopment 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 $4,000 nonrefundable earnest money deposit. Closing on the purchase of the lots must take place within 60 days of final EDA approval. The buyer will be responsible for paying the following costs associated with the purchase: • Preparation and issuance of the title commitment. • 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. Proposals must include homes on both lots. Construction of the new homes must be completed within one (1) year of closing on the purchase of the lots. The properties will remain tax exempt through the end of 2023. 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 within the right-of-way or utility easements. b. The builder shall be responsible for any expenses associated with connecting the houses to private utilities, including SAC fees for the new lot. c. Municipal water connections are available on the east side of the lots as shown on the Proposed Utility Services figure and marked onsite. The EDA coordinated replacing the existing curb stop box (north lot) and installing a new, second curb stop box (south lot) in conjunction with demolition work. The builder’s plumber will be responsible for removing the riser when hooking up water from the north curb stop box to the home (4205 Boone Avenue North). d. Municipal sanitary sewer connections are available on the east side of the lots as shown on the Proposed Utility Services figure and marked onsite. The EDA coordinated lining of the existing service (north lot) from the termination point all the way to the main line and installation of a new connection. 2. Building Standards and Design Guidelines a. All site improvements shall comply with the New Hope City Code. b. Each of the houses shall have at least three (3) finished bedrooms and two (2) finished bathrooms. c. The houses shall have attached garages that will accommodate a minimum of two (2) vehicles. Three (3) stall garages are preferred. d. The designs 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 decks 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. The use of soundproofing construction materials is recommended in areas that are adjacent to Boone and 42nd avenues and should be denoted on plans. City of New Hope, Minnesota Specifications (continued) h. 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. i. Exterior materials (siding, soffit, doors, and windows) shall be low maintenance. The use of brick or stone accents and incorporation of address numbers into 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. j. Driveways for the new homes must be fully paved from the street to the garage with a slope of no more than 10%. A shared driveway for the two lots will not be permitted. The driveway for the south lot should be placed as far north as possible to make accessing Boone Avenue North as easy as possible (garage to the north/on the right). It is recommended that a turnaround be incorporated into the driveway design. Driveways are not allowed within three (3) feet of any property line 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. The existing curb cut on 42nd Avenue North will be replaced with new curbing by city staff by September 2023. The builder will be responsible for adjusting the existing curb cut on Boone Avenue North to meet setback requirements. New curb cuts and curbing must meet requirements of the City Code and must be approved by the Public Works Department. See the 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. Setbacks Front Yard (east) Rear Yard (west) Interior Side Yard Attached Garage Interior Side Yard House Corner Side Yard House South lot (4201) 30’ 25’ 5’ (north line) N/A 25’ (south line) North lot (4205) 30’ 25’ 5’ (north or south line) 10’ (north or south line) N/A City of New Hope, Minnesota Specifications (continued) 4. Landscaping a. The intersection of Boone and 42nd avenues is one of the most prominent locations in the city. The minimum lot price has been reduced on the parcels with the goal of increasing the number of trees and amount of landscaping to be provided by the builder. The properties are also tax exempt through the end of 2023. b. Trees near the southeast corner of the lot shall remain in place unless they are replaced by the builder. c. 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. The area between the lower and upper retaining wall at southeast corner of the site must also be irrigated with an underground irrigation system. d. A minimum of two (2) large-species deciduous shade trees shall be planted on each lot. Trees must be a minimum of two (2) inches in diameter. A list of prohibited trees is attached. e. A berm was added along the south property line when demolition and grading occurred and shall remain in place. Builders should provide additional screening/landscaping (arborvitae, evergreen trees, decorative fencing, etc.) along the north and south property lines to aid in screening the homes from the parking lot to the north and 42nd Avenue North to the south. The RFP evaluation process will involve a review of landscaping plans and submissions that include such plans will be viewed favorably. Because the property is one of the more prominent locations in the city, builders are also encouraged to incorporate the area between and around the retaining walls at the southeast corner of the site into their landscaping plans. Additional screening measures beyond these requirements are encouraged. f. Foundation plantings with landscaping rock or wood chips and edging around the foundation of the home are preferred. 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 both houses within one (1) year of closing on the purchase of the lots. 6. Required Attachments by Builder • Upgrade checklist (attached). • Site plan showing the layout of the homes on the lots. Include dimensions and setbacks (completed survey is attached). • Floor plans with dimensions. Clearly indicate square footages of each floor. • List overall square footage. • List total finished square footage. • Elevations specifying types of exterior materials (color elevations preferred). • Description of the interior trim package, including flooring. • Anticipated sale price of the homes. • Pictures of similar homes (if available). • Landscaping plan (encouraged). Attachments • Recent home sales • Previous scattered site projects • Upgrade checklist • Survey • Photos • Backfill compacting testing results • Utility services figure • Well sealing certificate • Driveway and curbing specifications (STR-10A and STR-30) • Prohibited tree list City of New Hope, Minnesota Recent Home Sales The following homes in New Hope sold for more than $450,000 since January 1, 2021. Address Price Date Finished SF Beds Baths Year Built 8809 35th Ave N $655,000 9/2021 3,065 4 4 2006 8800 35th Ave N $640,000 4/2022 3,047 4 4 2016 5213 Pennsylvania Ave N $575,000 8/2022 3,102 5 4 2022 8057 55th Ln N $555,000 9/2021 3,307 5 4 2016 8045 55th Ln N $550,000 10/2021 3,787 5 4 2016 5507 Wisconsin Ave N $540,000 8/2021 3,501 4 4 2016 7328 51st Ave N $531,217 1/2022 2,434 3 3 2021 8028 55th Ln N $530,000 9/2021 2,695 4 3 2016 3400 Ensign Ave N $515,000 10/2022 2,471 5 3 2013 8111 60th Ave N $500,000 5/2022 3,442 6 4 1966 7202 51st Ave N $490,000 6/2022 2,306 3 3 2021 7320 51st Ave N $484,922 3/2021 2,208 3 3 2021 7319 51st Ave N $479,900 12/2021 2,339 3 3 2021 5431 Virginia Ave N $476,000 6/2022 2,432 4 3 2015 5510 Virginia Ave N $465,000 8/2022 2,778 4 4 2017 7327 51st Ave N $460,000 1/2021 2,339 3 3 2021 9101 36th Ave N $460,000 10/2021 3,564 3 4 2004 4637 Aquila Ave N $460,000 7/2022 2,537 5 3 2022 7405 51st Ave N $456,861 3/2021 2,029 3 3 2021 3517 Decatur Ct N $456,000 10/2021 2,269 4 4 1995 4301 Flag Ave N $465,000 3/2022 2,832 5 3 1978 7116 51st Ave N $451,557 12/2021 2,354 3 3 2021 7406 51st Ave N $450,755 4/2021 2,284 3 3 2021 8401 Meadow Lake Rd N $450,000 5/2022 1,948 3 2 1966 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 sale prices. Address Price Date Finished SF Bed/Bath Builder 5213 Pennsylvania Avenue North $575,000 8/2022 3,102 5/4 Donnay Homes 5431 Virginia Avenue North $476,000 $245,000 6/2022 11/2015 2,432 4/3 Novak-Fleck 4637 Aquila Avenue North $460,000 7/2022 2,537 5/3 Great Buy Homes 7215 62nd Avenue North $435,000 $350,821 10/2022 6/2019 2,284 4/3 Great Buy Homes 4215 Louisiana Avenue North $430,650 7/2021 2,537 5/3 Great Buy Homes 5355 Oregon Avenue North $430,000 $389,921 11/2022 11/2020 2,327 5/3 Great Buy Homes 3856 Maryland Avenue North $413,921 10/2019 3,102 5/4 Donnay Homes 4417 Nevada Avenue North $410,000 $363,869 11/2020 5/2017 2,329 4/3 Regal Homes 5201 Oregon Avenue North $408,320 4/2020 2,805 4/4 Novak-Fleck 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 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  Tray/inverted ceiling  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  Recessed lighting  Stone pillars  Underground irrigation system (required) General  Finished basement  Finished laundry room  Fireplace  Heated floors  Home office (room not classified as bedroom)  Recessed lighting (interior)  Smooth or knock-down ceilings  Solid core interior doors  Solid wood interior molding/trim  Soundproofing materials  Three-stall garage  Vaulted ceilings  Wood flooring Kitchen  Backsplash/tile on walls  Center island  Custom cabinets  Granite/quartz countertops  Stainless steel appliances Other  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________ HSSHVVCVHVS 88°50'56" E 145.09SOUTH 178.80N 87°28'15" W 145.2082.30100.0082.30S 88°50'56" E 145.0982.28P A R C E L AP A R C E L B96.50SOUTH 182.30F:\survey\mennonite brethern add\3-1\01 Surveying - 90187\01 CAD\01 Source\01 Survey Base.dwg1 OF 1SHEET NO.PROJECT: 90187CITY OF NEW HOPE4401 Xylon Ave. N.New Hope, MN 55428GRPSigned: ____________________________________________ Gregory R. Prasch Registration No. 24992Prepared this 17th day of November 2022.I certify that this plan, specification, or report was prepared by me or under my directsupervision and that I am a duly Licensed land Surveyor under the laws of the State ofMinnesota.FB No: 1117-48(763) 560-3093DemarcInc.comREVISION SUMMARYSURVEY FOR:DEVELOPMENT OF:TYPE OF SURVEY:ADMINISTRATIVELOT SPLIT4201 BOONE AVE. N. Existing Legal DescriptionLot 3, Block 1, MENNONITE BRETHERN ADDITION, Hennepin County, Minnesota.Zoning InformationLegendSCALE IN FEET0402060Miscellaneous NotesProperty Address: 4201 Boone Ave. N., New Hope, MN 55428PID No.: 18-118-21-21-0107Area of Parcel = 26,191 sq. ft.By graphic interpretation only, this property is in Flood Zone "X" (area of minimal flooding)per FEMA panel map number 27053C0192F, effective on 11/04/2016Title insurance commitment showing property description and any encumbrances of recordnot provided, survey subject to change.The only easements shown are from plats of record or information provided by client.Property located in Section 18, Township 118, Range 21, Hennepin County, MinnesotaBenchmark: Invert of sanitary manhole located on Boone Ave. opposite New Hope Churchbuilding.Elevation = 909.710 feet123456Property Zoned: R-1 Single Family Residential DistrictBuilding Setback Requirements (for residential) Front - 30 feet for Arterial or Collector Street (25' for local street) Side House - 10 feet Side Garage - 5 feet Rear - 25 feet Side Corner - 25 feet for Arterial or Collector Street (20' for local street)Maximum building coverage - not listedMaximum building height - 2 1/2 stories or 32 feet, whichever is greaterLot area: 9,500 sq. ft (for residential uses)Lot width: 75 feetCorner Lot width: 90 feetRefer to City Code for additional restrictions or allowances. Proposed Parcel DescriptionsPARCEL A: (area = 11,938 sq.ft)The North 82.28 feet of Lot 3, Block 1, MENNONITE BRETHERN ADDITION,Hennepin County, Minnesota.PARCEL B: (area = 14,252 sq.ft)That part of Lot 3, Block 1, MENNONITE BRETHERN ADDITION, Hennepin County,Minnesota lying South of the North 82.28 feet thereof. Proposed Easement DescriptionsEasement for drainage and utility purposes over, under and across the South 10.00feet of the North 92.28 feet of Lot 3, Block 1, MENNONITE BRETHERN ADDITION,Hennepin County, Minnesota except the West 5 feet and East 10 feet thereof.Easement for drainage and utility purposes over, under and across the East 25.00feet of the South 25.00 feet of Lot 3, Block 1, MENNONITE BRETHERNADDITION, Hennepin County, Minnesota.Easement for sidewalk and trail purposes over the South 10 feet of Lot 3, Block 1,MENNONITE BRETHERN ADDITION, Hennepin County, Minnesota.Denotes Found Iron MonumentDenotes Iron Monument SetBollardLightPower PoleHydrantSanitary ManholeStorm ManholeWater ManholeCatch BasinTelephone Pedestal RiserCable Pedestal RiserElectric Box or TransformerGas MainUnderground CommunicationsUnderground ElectricSanitary SewerStorm SewerWatermainOverhead Wiresrev. 11/23/2022 city comments Parcel A = 4205 Boone Avenue NorthParcel B = 4201 Boone Avenue North Scattered Site Housing Project - 4201 Boone Avenue North PROJECT: DATE: LAB NO: REPORT TO: COPIES TO: ATTN: FIELD TECH:REVIEWED BY: METHOD OF LAB TEST: METHOD OF FIELD TEST: LOCATION: DEPTH: Marc Carnahan DEPTH: LOCATION: LOCATION: DEPTH: LOCATION: DEPTH: LOCATION: DEPTH: LOCATION: DEPTH: LOCATION: DEPTH: LOCATION: DEPTH: See Photo 120.8 99.2% 98.0% 98.0% At Grade LAB RESULTS FIELD RESULTS DRY DENSITY PCF O.M.C. % 1. Job File 4201 Boone Avenue 122.4 8.5 DEPTH: 121.4 LOCATION: DEPTH:See Photo At Grade 10.4 Compaction Testing - Kevitt October 11, 2022 L-22077 DATETEST NO. 1 10/11 10.4 122.4 Pass 3335 Pennsylvania Avenue N Crystal, MN 55427 COMP. % REQ'D COMP. PASS/FAIL Kevitt Excavating COMP. % CONSTRUCTION ENGINEERING LABORATORY, INC. TESTING FOR QUALITY AND STRENGTH SP-SM w/Gravel 2 10/11 SP-SM w/Gravel LOCATION: SOIL FIELD COMPACTION SOIL TYPE CLASS.MOIST. % MAX. DRY DENSITY PCF Randy Juday Pass98.7% 9.4 ASTM D698 STANDARD PROCTOR ASTM D1557 MODIFIED PROCTOR ASTM D1556 SAND CONE ASTM D2922 NUCLEAR GAUGE 5661 International Parkway ♦ Minneapolis, Minnesota 55428 ♦ (763) 533-9534 ♦ marc_c@cel-inc.com SSSSHHROCKROCKHUCTVCHHHHGGGGGGGGGGGGG GGGGGGGGGGGGGGGGGGGGGlllll l>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>lllllllllllll8610>>>>>>Hlllllllll420486408"CIP9" VCP4"VCP3/4" COPPER12" CIP9"VCP9" VCP12" RCP>lllllDATEPROJ. NO.Plot Date: 08/10/2022 - 4:53pm Drawing name: R:\client\municipal\new_hope_ci_mn\Planning\2022\4201_boone_avenue_former_treehouse_property\CAD\Dwg\193805550_4201boone_XSXT.dwg Xrefs:733 Marquette Avenue, Suite 1000Minneapolis, MN 55402www.stantec.comPROPOSED UTILITY SERVICESCITY OF NEW HOPE, MN4201 BOONE AVENUE N LOT SPLIT8/10/2022193805550FIGURE 2N03060LEGENDPROPOSED SANITARY SEWER SERVICEPROPOSED WATER SERVICE W/. CURB STOP & BOXCURB STOP & BOX54THAVENUTILITY NOTES1 REMOVE EXISTING AND INSTALL NEW34"CURB STOP AND BOX. FREEZE SERVICE LINEPRIOR TO WORK.2 TELEVISE AND CIPP LINE EXISTING 4" VCPSANITARY SEWER SERVICE (APPROX. 20 LF FROMROW TO MAIN)3 INSTALL 4" PVC SANITARY SEWER SERVICEWITH WYE. EXTEND 20 LF @ MIN. 2.0%SLOPE AND INSTALL CAP. PATCH EXISTINGPAVEMENT, CURB AND SIDEWALK. STAMPLOCATION IN CURB.4 INSTALL 55 LF - 1" COPPER WATER SERVICEWITH 1" CURB STOP AND BOX.INSTALLATION SHALL BE VIA TRENCHLESSMETHOD (I.E. PNEUMAGOPHER). PATCHEXISTING PAVEMENT AND SIDEWALK.1342GENERAL NOTES1. NEW SERVICE LOCATIONS WILL BE VERIFIED INTHE FIELD BY OWNER. CONTRACTOR ISRESPONSIBLE FOR EXTENDING SERVICES FROMRIGHT-OF-WAY TO NEW HOMES.2. PROTECT ALL EXISTING TREES, UTILITIES,PAVEMENT, ETC. UNLESS OTHERWISE NOTED.3. BOONE AVE N PAVEMENT PATCH TO MATCHEXISTING WITH MINIMUM:1.5" SP 12.5 WEAR COURSE3.5" SP 12.5 BINDER COURSE3.0" SP 12.5 NON-WEAR COURSE±6" CLASS 5 AGGREGATE BASE(EXISTING AGGREGATE IS SALVAGEDRECLAIM MATERIAL)4. SIDEWALK PATCH TO MATCH EXISTING.5. UTILITY LOCATIONS AND ELEVATIONS AREAPPROXIMATE. CONTRACTOR TO FIELD VERIFYLOCATIONS AND ELEVATIONS.42NDAVEN(CSAH9)APPROXIMATE PROPOSEDHOUSE FOOTPRINT(TYP.)APPROXIMATEPROPOSEDDRIVEWAY LOCATIONEX. SAN MHRIM = 920.4 +/-INV. = 908.6 +/-BOONE AVE Nl>PROPOSED10' DRAINAGE ANDUTILITY EASEMENTPROPOSED25' X 25' DRAINAGE ANDUTILITY EASEMENTNOTE: 1" (NOT 3/4") 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 See attached. P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11449 4201 Boone Ave N\Purchase and Redevelopment Agreement - 4205 Boone Ave N - 18-118-21-21-0114.docx 1 Jeff Alger From:GLENN HAMMER Owner <glennhammer@q.com> Sent:Thursday, January 19, 2023 4:20 PM To:Jeff Alger Subject:Fw: 4201 & 4205 Boone Av Proposals Attachments:4201 & 4205 Boone Av Proposal.pdf We are excited for the opportunity to submit to you proposals for the properties located at 4201 and 4205 Boone Ave  N.We have included two plans which have proven to be very well received with a proven track record for strong sales.  With the real estate market quickly changing, we are committed to providing our very best product for the money.  In addition to our commitment to our buyers and providing them the very best product for the money we can, we are also deeply committed to continuing our long standing relationship with the city of New Hope and would love the opportunity to enhance an already amazing city with a couple more new homes.  If there are any questions or concerns we can address for you, please do not hesitate to contact us at any time. $475,000 to $480,000 Selling price  5 Large Bedrooms  3 Bathrooms  3 Car Garage  1403 sf Finished Main Floor  1134 sf Finished Basement  1537 sf TOTAL Finished  With gratitude‐  Glenn Hammer  Great Buy Homes  City staff correction: 2,537 SF Budget for 4201 Boone Ave N EXPENSES AMOUNT Acquisition (245,000.00)$ Closing costs for purchase (estimated)(3,000.00)$ Legal costs for purchase (estimated)(2,000.00)$ Appraisal (375.00)$ Demolition survey (650.00)$ Demolition and site prep (77,300.00)$ Utility pole relocation (1,613.00)$ Real estate taxes -$ Lawn services (estimated)(2,000.00)$ Utility billing (estimated)(300.00)$ Planning (lot split, estimated)(1,000.00)$ Engineering (lot split, utilities, estimated)(5,000.00)$ Park dedication fee (3,000.00)$ Public hearing notice (estimated)(150.00)$ Closing costs for sale (estimated)(1,500.00)$ Legal costs for sale (estimated)(2,000.00)$ TOTAL (344,888.00)$ REVENUE AMOUNT EDA (lot sale proceeds)161,000.00$ TOTAL 161,000.00$ TOTAL COST/REVENUE (183,888.00)$ Taxable Market Value 2022, Payable 2023 Projected Taxable Value 2024, Payable 2025 Change Percent Change -$ 950,000.00$ 950,000.00$ N/A Estimated Taxes Allocated to City 2022, Payable 2023 Projected Taxes Allocated to City 2024, Payable 2025 Change Percent Change -$ 5,700.00$ 5,700.00$ N/A Projected Project Expenses (344,888.00)$ Lot Sale Revenue 161,000.00$ Total Cost/Revenue (183,888.00)$ # of Years (Year) Additional Taxes Collected By City Total Cost/ Revenue Return On Investment 0 (present)-$ (183,888.00)$ -100.00% 1 (payable 2025)5,700.00$ (178,188.00)$ -96.90% 2 (payable 2026)11,571.00$ (172,317.00)$ -93.71% 3 (payable 2027)17,618.13$ (166,269.87)$ -90.42% 4 (payable 2028)23,846.67$ (160,041.33)$ -87.03% 5 (payable 2029)30,262.07$ (153,625.93)$ -83.54% 10 (payable 2034)65,344.11$ (118,543.89)$ -64.47% 15 (payable 2039)106,013.81$ (77,874.19)$ -42.35% 20 (payable 2044)153,161.13$ (30,726.87)$ -16.71% 25 (payable 2049)207,817.81$ 23,929.81$ 13.01% 30 (payable 2054)271,179.87$ 87,291.87$ 47.47% *Based on two new homes valued at a combined $950,000 Estimated Tax Impact of Improvements at 4201 Boone Ave N Estimated Return on Investment for 4201 Boone Ave N Description Taxable Market Value Change Cash Flow Investment -$ (183,888.00)$ Return, Year 1 950,000.00$ 5,700.00$ Return, Year 2 978,500.00$ 5,871.00$ Return, Year 3 1,007,855.00$ 6,047.13$ Return, Year 4 1,038,090.65$ 6,228.54$ Return, Year 5 1,069,233.37$ 6,415.40$ Return, Year 6 1,101,310.37$ 6,607.86$ Return, Year 7 1,134,349.68$ 6,806.10$ Return, Year 8 1,168,380.17$ 7,010.28$ Return, Year 9 1,203,431.58$ 7,220.59$ Return, Year 10 1,239,534.52$ 7,437.21$ Return, Year 11 1,276,720.56$ 7,660.32$ Return, Year 12 1,315,022.18$ 7,890.13$ Return, Year 13 1,354,472.84$ 8,126.84$ Return, Year 14 1,395,107.03$ 8,370.64$ Return, Year 15 1,436,960.24$ 8,621.76$ Return, Year 16 1,480,069.05$ 8,880.41$ Return, Year 17 1,524,471.12$ 9,146.83$ Return, Year 18 1,570,205.25$ 9,421.23$ Return, Year 19 1,617,311.41$ 9,703.87$ Return, Year 20 1,665,830.75$ 9,994.98$ Return, Year 21 1,715,805.67$ 10,294.83$ Return, Year 22 1,767,279.84$ 10,603.68$ Return, Year 23 1,820,298.24$ 10,921.79$ Return, Year 24 1,874,907.19$ 11,249.44$ Return, Year 25 1,931,154.40$ 11,586.93$ Return, Year 26 1,989,089.03$ 11,934.53$ Return, Year 27 2,048,761.70$ 12,292.57$ Return, Year 28 2,110,224.56$ 12,661.35$ Return, Year 29 2,173,531.29$ 13,041.19$ Return, Year 30 2,238,737.23$ 13,432.42$ Total Returns 271,179.87$ Investment Cost 344,888.00$ Selling Price 161,000.00$ Return on Investment 47.47% Description Amount Investment (183,888.00)$ Return, Year 1 5,700.00$ Return, Year 2 5,871.00$ Return, Year 3 6,047.13$ Return, Year 4 6,228.54$ Return, Year 5 6,415.40$ Return, Year 6 6,607.86$ Return, Year 7 6,806.10$ Return, Year 8 7,010.28$ Return, Year 9 7,220.59$ Return, Year 10 7,437.21$ Return, Year 11 7,660.32$ Return, Year 12 7,890.13$ Return, Year 13 8,126.84$ Return, Year 14 8,370.64$ Return, Year 15 8,621.76$ Return, Year 16 8,880.41$ Return, Year 17 9,146.83$ Return, Year 18 9,421.23$ Return, Year 19 9,703.87$ Return, Year 20 9,994.98$ Return, Year 21 10,294.83$ Return, Year 22 10,603.68$ Return, Year 23 10,921.79$ Return, Year 24 11,249.44$ Return, Year 25 11,586.93$ Return, Year 26 11,934.53$ Return, Year 27 12,292.57$ Return, Year 28 12,661.35$ Return, Year 29 13,041.19$ Return, Year 30 13,432.42$ Total Returns 271,179.87$ Internal Rate of Return 2.33% Estimated Internal Rate of Return for 4201 Boone 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 -$ 950,000.00$ 950,000.00$ 5,700.00$ 2 -$ 978,500.00$ 978,500.00$ 5,871.00$ 3 -$ 1,007,855.00$ 1,007,855.00$ 6,047.13$ 4 -$ 1,038,090.65$ 1,038,090.65$ 6,228.54$ 5 -$ 1,069,233.37$ 1,069,233.37$ 6,415.40$ 6 -$ 1,101,310.37$ 1,101,310.37$ 6,607.86$ 7 -$ 1,134,349.68$ 1,134,349.68$ 6,806.10$ 8 -$ 1,168,380.17$ 1,168,380.17$ 7,010.28$ 9 -$ 1,203,431.58$ 1,203,431.58$ 7,220.59$ 10 -$ 1,239,534.52$ 1,239,534.52$ 7,437.21$ 11 -$ 1,276,720.56$ 1,276,720.56$ 7,660.32$ 12 -$ 1,315,022.18$ 1,315,022.18$ 7,890.13$ 13 -$ 1,354,472.84$ 1,354,472.84$ 8,126.84$ 14 -$ 1,395,107.03$ 1,395,107.03$ 8,370.64$ 15 -$ 1,436,960.24$ 1,436,960.24$ 8,621.76$ 16 -$ 1,480,069.05$ 1,480,069.05$ 8,880.41$ 17 -$ 1,524,471.12$ 1,524,471.12$ 9,146.83$ 18 -$ 1,570,205.25$ 1,570,205.25$ 9,421.23$ 19 -$ 1,617,311.41$ 1,617,311.41$ 9,703.87$ 20 -$ 1,665,830.75$ 1,665,830.75$ 9,994.98$ 21 -$ 1,715,805.67$ 1,715,805.67$ 10,294.83$ 22 -$ 1,767,279.84$ 1,767,279.84$ 10,603.68$ 23 -$ 1,820,298.24$ 1,820,298.24$ 10,921.79$ 24 -$ 1,874,907.19$ 1,874,907.19$ 11,249.44$ 25 -$ 1,931,154.40$ 1,931,154.40$ 11,586.93$ 26 -$ 1,989,089.03$ 1,989,089.03$ 11,934.53$ 27 -$ 2,048,761.70$ 2,048,761.70$ 12,292.57$ 28 -$ 2,110,224.56$ 2,110,224.56$ 12,661.35$ 29 -$ 2,173,531.29$ 2,173,531.29$ 13,041.19$ 30 -$ 2,238,737.23$ 2,238,737.23$ 13,432.42$ 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 4201 Boone Ave N Comparison of Costs & Tax Impact for Recent Projects Since implementation of analysis template that utilizes tax growth rate assumptions (September of 2020) 4201 Boone Avenue North 3611 Louisiana Avenue North 5306 Rhode Island Avenue North 5213 Pennsylvania Avenue North 4637 Aquila Avenue North 4215 Louisiana Avenue North Number of Units 2 1 1 1 1 1 Project Description Demolition, lot split & rebuild Demolition & rebuild Demolition & rebuild Demolition & rebuild Demolition & rebuild Demolition & rebuild Year Acquired 2022 2022 2022 2021 2021 2020 Projected or Actual Projected (at time of lot sale) Projected (at time of offer) Projected (at time of lot sale) Projected (at time of lot sale) Projected (at time of lot sale) Projected (at time of lot sale) Expenses ($344,888.00) ($244,819.00) ($253,072.00) ($205,172.18) ($127,292.01) ($170,441.53) Revenue $161,000.00 $75,000.00 $87,000.00 $72,000.00 $81,000.00 $69,000.00 Total Cost/Revenue ($183,888.00) ($169,819.00) ($166,072.00) ($133,172.18) ($46,292.01) ($101,441.53) Estimated Taxable Value of New Home(s) $475,000 per home $950,000 total $450,000 $575,000 $485,000 $445,000 $380,000 *Additional Taxes Collected by City - 1 year $5,700.00 $1,194.00 $2,100.00 $1,902.00 $1,254.00 $786.00 *Additional Taxes Collected by City - 30 years $271,179.87 $56,805.05 $99,908.37 $90,488.44 $59,659.57 $37,394.28 *Return On Investment - 30 years 47.47% -66.55% -39.84% -32.05% 28.88% -63.14% *Internal Rate of Return - 30 years 2.33% -5.44% -2.69% -2.08% 1.49% -5.01% *Assumed 3% tax value growth rate I:\RFA\COMM DEV\2023\EDA\3611 Louisiana Ave N\Q ‐ 3611 Louisiana Ave N Demolition Contract 02‐27‐23.docx    Request for Action  February 27, 2023    Approved by: Tim Hoyt, Acting City Manager  Originating Department: Community Development  By: Jeff Alger, Community Development Specialist;   Jeff Sargent, Director of Community Development  Agenda Title  Resolution approving contract with Nitti Rolloff Services Inc for hazardous material abatement, disposal of  items throughout yard and within buildings, tree removal, demolition of site improvements, well sealing, site  grading, and installation of utility improvements at 3611 Louisiana Avenue North (improvement project no.  1065)  Requested Action  Staff requests approval of a resolution awarding a contract for hazardous material abatement, disposal of items  throughout yard and within buildings, tree removal, demolition of building and site improvements, well  sealing, site grading, sewer lining, and water service valve replacement at 3611 Louisiana Avenue North, to the  low and responsible bidder, Nitti Rolloff Services Inc, in the amount of $39,250.  Policy/Past Practice  It is a past practice of staff to present contracts to the Economic Development Authority for consideration when  public bidding is required for scattered site housing projects.  Background  The Economic Development Authority (EDA) acquired the property located at 3611 Louisiana Avenue North  for $205,000 in December of 2022, as part of the city’s scattered site housing program. The EDA directed staff  to take the necessary steps in preparing the building for demolition in order to facilitate redevelopment of the  property. This contract award includes hazardous material abatement, disposal of items throughout yard and  within buildings, tree removal, demolition of building and site improvements, well sealing, site grading, sewer  lining, and water service valve replacement at the property. Staff requested quotes from six contractors, who  submitted the following bids:   Nitti Rolloff Services Inc  $39,250   Kevitt Excavating, LLC  $55,895   Bollig and Sons    Did not submit   JACON LLC    Did not submit   Leadens Excavating Inc  Did not submit   Lloydʹs Construction Services Inc Did not submit    The EDA has worked with the low bidder, Nitti Rolloff Services Inc, on eight previous scattered site housing  demolition projects. The contractor most recently completed the demolition work at 5306 Rhode Island Avenue  North in 2022. Staff has had good experiences working with the contractor and has no concerns with awarding  them the contract.  Funding  Funding is available in the EDA budget for the demolition contract.    Agenda Section EDA Item Number  5    Request for Action, Page 2    Recommendation  Staff recommends approval of a resolution awarding a contract for hazardous material abatement, disposal of  items throughout yard and within buildings, tree removal, demolition of site improvements, well sealing, site  grading, and installation of utility improvements at 3611 Louisiana Avenue North to Nitti Rolloff Services Inc,  in the amount of $39,250.  Attachments   Resolution   Bids   Request For Quote/Project Specifications    EDA RESOLUTION NO. 23-___ RESOLUTION APPROVING CONTRACT WITH NITTI ROLLOFF SERVICES INC FOR HAZARDOUS MATERIAL ABATEMENT, DISPOSAL OF ITEMS THROUGHOUT YARD AND WITHIN BUILDINGS, TREE REMOVAL, DEMOLITION OF SITE IMPROVEMENTS, WELL SEALING, SITE GRADING, AND INSTALLATION OF UTILITY IMPROVEMENTS AT 3611 LOUISIANA AVENUE NORTH (IMPROVEMENT PROJECT NO. _____) BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, the Economic Development Authority in and for the City of New Hope (“EDA”) purchased that certain real property located at 3611 Louisiana Avenue North, New Hope, MN (the “Property”) with the intention of redeveloping the Property; and WHEREAS, City staff intends to redevelop the Property in accordance with the City’s scattered site housing program and policy and return the Property to the tax rolls for the benefit of all taxing jurisdictions; and WHEREAS, City staff is exercising due diligence to correct the Property’s blighted condition by performing hazardous material abatement at the Property to be followed by disposal of items throughout yard and within buildings, tree removal, demolition of all buildings on the Property, well sealing, site grading, and installation of utility improvements at the Property (“Work”); and WHEREAS, Nitti Rolloff Services Inc submitted a proposal for the Work that meets all of the Project Specifications and is the low bid; and WHEREAS, it is in the best interests of the EDA to enter into a contract with Nitti Rolloff Services Inc for the purpose of performing the Work; and WHEREAS, City staff is hereby seeking approval from the EDA of the selection of Nitti Rolloff Services Inc as the duly qualified contractor to perform the Work. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. That selection of Nitti Rolloff Services Inc as the Contractor to perform the hazardous material abatement at the Property to be followed by disposal of items throughout yard and within buildings, tree removal, demolition of all buildings on the Property, well sealing, site grading, and installation of utility improvements at the Property pursuant to the Project Specifications is approved, it being in the best interest of the EDA and City to prepare the Property for redevelopment in accordance with the City’s scattered site housing program and policy. 3. That the payment of $39,250.00 to Nitti Rolloff Services Inc to perform the Work is hereby approved. 4. The President, Acting 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 facilitate the completion of the Work at the Property in accordance with the contract to be prepared by the City Attorney. Dated the 27th day of February, 2023. ____________________________________ Kathi Hemken, President Attest: _____________________________ Tim Hoyt, Acting Executive Director P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11445 3611 Louisiana Ave N\Resolution approving Demolition contract for 3611 Louisiana Ave N.docx City of New Hope, Minnesota Request For Quote/Project Specifications Date: January 3, 2023 From: The Economic Development Authority (EDA) in and for the city of New Hope Subject: Request for quotes for hazardous material abatement, tree removal, demolition, well sealing, sewer lining, and water service valve replacement at 3611 Louisiana Avenue North. Overview: The city of New Hope EDA owns the property located at 3611 Louisiana Avenue North, New Hope, MN 55427 (PID 17-118-21-34-0060). The EDA is requesting quotes for the removal of hazardous material, disposal of items throughout the yard and within the buildings, tree removal, and the demolition of all building and site improvements at this location followed by sealing of the well on-site, installation of utility improvements, and re-grading of the primary excavation area. If you are interested in submitting a quote for this project, please review the enclosed specifications and inspect the site. To gain entry into the home, use the lock box on the front entrance door using the code 4401. When accessing the basement, stay on the left side of the stairs as you go down the stairs; there is a missing stringer on the right side. Please call Jeff Alger (763-531-5119) or Jeff Sargent (763-531-5196) in the Community Development Department with any questions. Submission: Interested bidders must submit enclosed Bid Form by U.S. Mail, e-mail, or in person. Bids must be submitted to Jeff Alger, Community Development Specialist and Jeff Sargent, Director of Community Development. City of New Hope Community Development Department Attention: Jeff Alger and Jeff Sargent 4401 Xylon Avenue North New Hope, MN 55428 jalger@newhopemn.gov, jsargent@newhopemn.gov Deadline: Proposals must be submitted using the enclosed bid form and received no later than February 15, 2023, 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 award the bid at the February 27, 2023, meeting. The work shall be completed in full no later than 90 days after the contract has been awarded. City of New Hope, Minnesota Bid Form Property Owner: City of New Hope Economic Development Authority (EDA) Property Address: 3611 Louisiana Avenue North, New Hope, MN 55427 Property Identification Number: 17-118-21-34-0060 For a price of $_______________________, the contractor named below proposes to fully complete the work in accordance with the attached specifications for hazardous material abatement, disposal of items throughout yard and within buildings, tree removal, demolition of all building and site improvements, well sealing, utility improvements, and re-grading of the primary excavation area. Contractor Name: _______________________________________________________________ License Number: ________________________________________________________________ Address: ___________________________________ ___________________________________ Telephone: ______________________________________________________________________ Email: ____________________________________________________________________________ Contractor Name & Title: _______________________________________________________ Signature: ______________________________________ Date: ____________________ City of New Hope, Minnesota Specifications For Demolition & Related Work 1. General a. Contractor shall furnish all labor, materials, and equipment, and shall perform all service and work required to remove the buildings, structures, and improvements from the site, and post demolition grading of the site, in strict accordance with these specifications and in accordance with all applicable ordinances and laws pertaining to removal of buildings, structures, grading, and erosion control. Prior to demolition, the contractor shall install silt fencing or erosion control logs around the entire perimeter of the disturbed area that shall remain in place permanently. b. Contractor shall thoroughly review these specifications and examine the site to evaluate existing and proposed conditions prior to submitting a quote. Failure to do so shall in no way relieve contractor from performing the work as required or be grounds for a claim for extra payment. 2. Demolition & Disposal of Buildings & Site Improvements a. All buildings and site improvements shall be removed and properly disposed. Demolition to include, but not limited to decks, stairs, ramps, floor slabs, equipment bases, driveways, aprons, foundation walls and footings, and other structure components, appurtenances, and contents associated with each structure, unless otherwise noted. Include removal of all out-buildings and contents within buildings, items throughout the yard, landscaping rocks and boulders, retaining wall and concrete blocks, pavers, timbers, light posts, hot tub, gardens, and other miscellaneous items depicted in the attached photos. b. All demolition materials, substrates, debris, waste, or other materials shall be collected, stored, handled, managed, and disposed in accordance with currently accepted practices at an approved, licensed, or permitted facility in accordance with applicable federal, state, and local ordinances, rules, and regulations. c. Fencing along the north, south, and west property lines shall not be removed. d. New windows were installed throughout the house within the last year. Contractor may wish to salvage the windows or work with a nonprofit to salvage and reuse the windows. Much of the home has already been gutted. e. Selected demolition contractor shall meet with city staff on-site prior to beginning work to review scope of work. City of New Hope, Minnesota Specifications For Demolition & Related Work (continued) 3. Tree & Vegetation Removal a. Larger trees to be removed have been marked with spray paint. All stumps shall be pulled from the ground and hauled away. Stump pits shall be backfilled. Contractor is to include tree and stump removal in the demolition bid. With the exception of the two trees and two shrubs specified in the attached photos, all other vegetation on site shall be removed. This includes trees, bushes, shrubs, plants, gardens, wood piles, and brush. 4. Backfill, Compaction & Grading a. No demolition material shall be left in or placed in any excavation. All excavations, unless otherwise noted, shall be back filled with clean, imported sand. Imported material shall be placed in one-foot lifts and compacted to no less than 95% standard proctor density. Contractor shall provide the city with a third-party sampling, analysis, and report to demonstrate that at least 95% compaction has been achieved. b. The finished grade shall be determined by matching the existing average grade of the excavation areas prior to demolition. The final grade shall maintain pre demolition drainage patterns. No imported topsoil is required. c. Upon completion of the finished grade, contractor shall immediately hydro- seed all disturbed areas of the site. 5. Asbestos & Other Hazardous Materials a. Contractor shall submit “Notification of Intent to Perform a Demolition” form to the MPCA. The city has contracted with Angstrom Analytical for the completion of a demolition survey for the property. The survey is attached to this report. Demolition contractor is to provide for the removal, and appropriate disposal of all asbestos and other hazardous items listed in the report. 6. Well Abandonment a. There is an unsealed well located in the west side of the basement. Contractor shall hire state-licensed contractor to properly seal the well and record the sealing with the Minnesota Department of Health. Contractor shall provide records of the well sealing to the city upon completion. City of New Hope, Minnesota Specifications For Demolition & Related Work (continued) 7. Utilities a. Contractor shall be responsible for contacting Gopher State One Call to locate any underground utilities prior to beginning demolition and site grading work. b. The city has ordered the disconnection of electricity (Xcel Energy) and natural gas (CenterPoint Energy) services for the property. Contractor shall verify disconnections in field prior to demolition. Other private communication utilities such as telephone and cable may still be connected; if so, contractor shall roll them back and secure them at the utility pole prior to demolition. c. Water service has been shut off at the curb stop box off Louisiana Avenue North. Contractor is to remove the water line all the way to the curb stop. Contractor is to install new curb stop and box as part of the water disconnection. Contractor shall install lid shown on “Water Valve Top Sections” attachment. The location of the service termination shall be documented and marked on-site. An inspection by the city is required prior to backfilling. d. Contractor is to coordinate termination of the private sewer line with Public Works. The sewer main is located along the rear property line and runs through the backyard to the house. The sewer line shall be removed to within 30 feet of the property line and the remaining service stub shall be lined with CIPP lining all the way to the main. Public Works staff believes the existing line from the house to the main is six (6) inches but given the lack of records it is possible that it is four (4) inches. Once lined, cap the end in preparation for connection to the new house. The location of the service termination shall be documented and marked onsite. An inspection by the city is required prior to backfilling. e. There is a four (4) inch black perforated flex draintile pipe directly behind (west) the curb along Louisiana Avenue North. It is buried approximately two (2) feet deep and hooks into a catch basin that is just south of the driveway to the apartment building at 7104 36th Avenue North. Caution should be exercised when removing the existing driveway that runs above the drantile pipe and when digging in the area. Contractor shall be solely responsible for any damage that occurs to the draintile pipe and system. City of New Hope, Minnesota Specifications For Demolition & Related Work (continued) 8. Permits & Inspections a. Contractor shall submit building permit application prior to beginning demolition work. Demolition permit fees will be waived, however the state surcharge will still be collected, as the city cannot waive that portion. Permit fees for sewer, water, and utility work will not be waived. Contractor shall have the work inspected prior to backfilling the primary excavation area. The private water and sewer service terminations must also be inspected by the city’s Public Works staff. A separate water and sewer disconnection permit shall be obtained from the city. Before payment may be issued to the selected contractor, all inspections must be completed, permits must be finalized, and the compaction analysis and well sealing documents (or well sealing variance) must be provided to the city. b. If any permits from other governmental agencies are required, contractor shall be responsible for securing such permits, paying any fees at their own expense, and completing any required inspections. Copies of any such permits shall be provided to the city. c. Contractor shall submit “Notification of Intent to Perform a Demolition” form to the MPCA. City of New Hope, Minnesota Specifications For Demolition & Related Work (continued) 9. Miscellaneous Provisions & Notices a. Contractor shall erect and maintain all necessary barricades and warnings to adequately safeguard workers, adjacent property, and the public. b. The demolition and clearing of the site shall be carried out in such a manner to preclude damage to adjacent property or public right-of-way. Contractor shall be solely responsible for any such damage. c. Contractor is to provide dust control during demolition process by spraying water so as to suppress airborne dust. Water tank(s) can be filled at no cost at the New Hope Public Works building at 5500 International Parkway. Please notify Public Works staff one week in advance of the request. d. Submission of a proposal will constitute an incontrovertible representation by contractor that contractor has complied with every requirement of these specifications and attachments thereto; that without exception the proposal is premised upon performing and furnishing the work including but not limited to the specific means, methods, techniques, sequences, procedures, or precautions expressly required by these specifications and attachments thereto; that contractor has received from city satisfactory written resolution of any conflicts, errors, ambiguities, and discrepancies; and that these specifications and attachments thereto are generally sufficient to indicate and convey understanding of the terms and conditions for performing and furnishing the work. Attachments • Site photos • Aerial map • Hazardous material report • Sewer and water map • Water valve top sections City of New Hope, Minnesota City of New Hope, Minnesota City of New Hope, Minnesota City of New Hope, Minnesota Do not remove fence or anything on the other side (north) of it City of New Hope, Minnesota City of New Hope, Minnesota Remove all plantings, planter boxes, timbers, vegetation, and debris in garden area Do not remove fencing X X City of New Hope, Minnesota X X X X X Do not remove fencing City of New Hope, Minnesota X X X Do not remove fencing Do not remove fencing City of New Hope, Minnesota X X X X X X X X X X X X X City of New Hope, Minnesota Do not remove fencing City of New Hope, Minnesota X City of New Hope, Minnesota The 2 trees and 2 bushes numbered on this page are the only vegetation that will remain Tree remains 1/2 Tree remains 2/2 Bush remains 1/2 Bush remains 2/2 City of New Hope, Minnesota Well Hennepin County Property Map Date: 12/15/2022 Comments: 1 inch = 100 feet PARCEL ID: 1711 82134 0060 OWNER NAME: Paramoun t Inve stment Grp Llc PARCEL ADDRESS: 3 611 Lo uisiana Ave N,New Hope MN 55427 PARCEL AREA: 0 .29 acres, 12 ,56 4 sq ft A-T-B: Torren s SALE PRICE: $20 5,0 00 SALE DATE: 08/2021 SALE CODE: Excluded From Ratio Studies ASSESSED 2021, PAYABLE 2022 PRO PERTY TYPE: Reside ntial H OMESTEAD: Ho me stead MARKET VALU E: $218,000 TAX TOTAL: $3,238.70 ASSESSED 2022, PAYABLE 2023 PROPERTY TYPE: Re sidential HOMESTEAD: Non-Ho mestead MARKET VALUE: $251 ,00 0 This data (i) is furnished 'AS IS' with no representation as to completeness or accuracy; (ii) is furnished with no warranty of any kind; and (iii) is not suitable for legal, engineering or surveying purposes. Hennepin County shall not be liable for any damage, injury or loss resulting from this data. COPYRIGHT © HENNEPIN COUNTY 2022 3611 Louisiana Ave N Sewer & water connections WaterWater SewerSewer Page 1 of 1 Shop Drawing Review Review Notes: Submittal #3 – Core&Main – Utilities Materials – Resubmitted #2 – Offset Curb Box Lids Approved for construction. Thank you, Ann Project:City of New Hope – 2020 Infrastructure Improvements Reviewed Reviewed As Noted Revise And Resubmit Seal & Signature Required Review by Stantec is for the sole purpose of ascertaining general conformity with design. Contractor is responsible for dimensions, fabrication and construction methods, coordination of sub- trades, detail design of components, and errors or omissions on Shop Drawings. STANTEC CONSULTING SERVICES INC. To:Northwest Asphalt Inc.-Jeremy Gylland From:Stantec Client:City of New Hope File No.: 193804756 Specification Section No.and Name: 33 10 00 – Water Utilities 33 12 12 – Water Services 33 40 00 – Storm Drainage Utilities Signed by: Ann Dienhart Date: 5/4/2020 48 49 46 TREE GRATES NEENAH FOUNDRY TREE GRATES SURE-FIT FRAMES AND FRAMES 45 WATER VALVE TOP SECTIONS MALE/FEMALE TOP SECTIONS ESS BROTHERS AND SONS, INC. METRO: 763-478-2027 OUT-STATE: 1-800-478-2027 FAX: 763-478-8868 REPAIR PART FOR BROKEN TOP SECTIONS &XUE %R[ 5HSDLU /LGV 9350 County Road 19 Loretto, MN 55357 ‡ P: 763.478.2027 ‡ 7) 800-.478.2027 F: 763.478.8868 ‡ www.essbrothers.com 45 WATER VALVE TOP SECTIONS MALE/FEMALE TOP SECTIONS ESS BROTHERS AND SONS, INC. METRO: 763-478-2027 OUT-STATE: 1-800-478-2027 FAX: 763-478-8868 REPAIR PART FOR BROKEN TOP SECTIONS 45 WATER VALVE TOP SECTIONS MALE/FEMALE TOP SECTIONS ESS BROTHERS AND SONS, INC. METRO: 763-478-2027 OUT-STATE: 1-800-478-2027 FAX: 763-478-8868 REPAIR PART FOR BROKEN TOP SECTIONS 45 WATER VALVE TOP SECTIONS MALE/FEMALE TOP SECTIONS ESS BROTHERS AND SONS, INC. METRO: 763-478-2027 OUT-STATE: 1-800-478-2027 FAX: 763-478-8868 REPAIR PART FOR BROKEN TOP SECTIONS ESS BROTHERS AND SONS, INC. METRO: 763-478-2027 OUT-STATE: 1-800-478-2027 FAX: 763-478-8868