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082823 EDA Meeting Packet EDA MEETING City Hall, 4401 Xylon Avenue North Monday, August 28, 2023 President Kathi Hemken Commissioner John Elder Commissioner Andy Hoffe Commissioner Michael Isenberg Commissioner Jonathan London 1. Call to order – EDA Meeting of August 28, 2023 2. Roll call 3. Approval of Minutes: • July 24, 2023 4. Resolution approving purchase and redevelopment agreement with Great Buy Homes, Inc. for the sale of 5802 Boone Avenue North (improvement project no. 1088) 5. Resolution approving contract with Bollig & Sons, Inc. for hazardous material abatement, well sealing, removal of appliances, demolition and disposal of remaining material following burn, tree removal, sewer lining and water service valve replacement for existing services, installation of new sewer and water services and sump pump stub for future second lot and site re-grading at 4965 Winnetka Avenue North (improvement project no. 1060) 6. Adjournment EDA Meeting   Page 1 July 24, 2023  City of New Hope  4401 Xylon Avenue North  New Hope, Minnesota 55428    EDA Minutes July 24, 2023  Regular Meeting City Hall      CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to  order at 7:23 p.m.    ROLL CALL Present:          Kathi Hemken, President  John Elder, Commissioner  Andy Hoffe, Commissioner  Michael Isenberg, Commissioner  Jonathan London, Commissioner     Staff Present:      Reece Bertholf, City Manager  Valerie Leone, City Clerk  Stacy Woods, Assistant City Attorney    APPROVAL OF  MINUTES  Item 3    Motion was made by Commissioner Elder, seconded by Commissioner London,  to approve the minutes of June 26, 2023. All present voted in favor. Motion  carried.    APPOINTMENT OF  OFFICERS  Item 4    President Hemken introduced for discussion EDA Item 4, Resolution appointing  officers to the Economic Development Authority for the City of New Hope.    Mr. Reece Bertholf, city manager, explained the resolution appoints officers to the  EDA. The appointments include members of the Council and city staff. In the  future the appointment resolution will be presented annually to the EDA at the  second meeting in January.    RESOLUTION 2023‐08  Item 4  Commissioner Elder introduced the following resolution and moved its adoption  “RESOLUTION APPOINTING OFFICERS TO THE ECONOMIC  DEVELOPMENT AUTHORITY FOR THE CITY OF NEW HOPE.” The motion  for the adoption of the foregoing resolution was seconded by Commissioner  Hoffe, and upon vote being taken thereon, the following voted in favor thereof:  Hemken, Elder, Hoffe, Isenberg, London; and the following voted against the  same: None; Abstained: None; Absent: None; whereupon the resolution was  declared duly passed and adopted, signed by the president which was attested to  by the executive director.    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 7:25 p.m.  Respectfully submitted,    Valerie Leone, City Clerk  I:\RFA\COMM DEV\2023\EDA\5802 Boone Ave N\Q ‐ 5802 Boone Ave N Lot Sale 08‐28‐23.docx    Request for Action  August 28, 2023    Approved by: Reece Bertholf, City Manager  Originating Department: Community Development  By: Jeff Alger, Community Development Specialist;   Jeff Sargent, Director of Community Development  Agenda Title  Resolution approving purchase and redevelopment agreement with Great Buy Homes, Inc. for the sale of 5802  Boone Avenue North (improvement project no. 1088)  Requested Action  Staff requests that the Economic Development Authority conduct a public hearing and approve a resolution  approving the sale of the scattered site lot located at 5802 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 foreclosed property located at 5802 Boone Avenue  North for $119,600 in April of 2023, as part of the city’s scattered site housing program. Demolition work was  completed in July of 2023 and the lot has been prepared for construction of a new single‐family home. A  Request for Proposals (RFP) marketing the lots was sent to more than 60 builders on July 25, 2023. The non‐ negotiable minimum lot sale price was set at $70,000 and builders were allowed the opportunity to submit a  higher offer in order to make their proposal more competitive. The decreased minimum lot price reflects  changes in the housing market as well as additional costs that will be incurred by the builder for supplying  power to the future home. Xcel Energy has determined that the future home cannot be serviced by power in  the same manner as the previous home. The lot is challenging and unique. Xcel Energy intends to run power  underground from Bass Lake Road to the west side of 5802 Boone Avenue North. The builder will be  responsible for all costs associated with the new line and connection, which are estimated at $5,000. The selected  builder will also need to negotiate an easement with the property owner north of Bass Lake Road. The RFP  stated that “a two‐story rambler design is preferred” for the site, and that the proposed house “must be an  owner‐occupied, single‐family home.” The occupancy requirement applies to the first buyer for period of two  years. The RFP included an attachment listing homes in the city that have sold for $450,000 or more since June  1, 2021, and an attachment listing the highest valued previous scattered site projects.    Proposals were due August 16, 2023. The EDA received one proposal, submitted by Great Buy Homes. Staff  spoke with several builders who elected not to submit proposals. They cited concerns about the housing market  and interest rates, existing unsold inventory, and not having been selected with previous proposals. The  proposal from Great Buy Homes features a split‐level entry home with a projected sale price of $475,000 to  $480,000. The home has 2,537 square feet of finished space, five bedrooms, and three bathrooms. The home  features a front porch, a garage door and front door with windows, stone address numbers built into the façade,  and a large amount of cultured stone. The home has a three‐stall garage, a master bedroom with a walk‐in  closet, granite/quartz countertops with a center island in the kitchen, and a vaulted ceiling. The builder has had  success with the split‐level design in New Hope and felt it would be more marketable than a rambler or two‐ story design.  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 $70,000  Projected sale price $475,000 to $480,000  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   Stone address numbers built into façade   Shakes and board and batten siding   Front door with windows & sidelights   Cultured stone on entire 2‐stall garage and lower 1/3  of 1‐stall garage and lower 1/3 of home  Other  Vaulted ceiling   Granite/quartz kitchen countertops with center island   1 walk‐in closet, upper level  Upgrade Checklist 22 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 11 lots to the  builder over the past eight 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, 2023, are as follows:    Address Builder’s Projected  Sale Price  Actual Sale Price  & Year  2023 Hennepin County  Assessed Value  5400 Yukon Ave N $285,000 $297,000 (2017) $381,800  6065 Louisiana Ave N $320,000 $325,000 (2018) $377,400  6067 Louisiana Ave N $320,000 $323,900 (2018) $427,800  7215 62nd Ave N $325,000 $350,821 (2019)  $435,000 (2022)  $404,500  5353 Oregon Ave N $350,000 $385,750 (2021) $407,900  5355 Oregon Ave N $350,000 $389,921 (2020)  $430,000 (2022)  $402,900  4215 Louisiana Ave N $380,000 $435,000 (2021) $440,000  4637 Aquila Ave N $445,000 $460,000 (2022) $443,800  4201 Boone Ave N $475,000‐$480,000 N/A N/A  4205 Boone Ave N $475,000‐$480,000 N/A N/A  3611 Louisiana Ave N $475,000‐$480,000 N/A N/A          Request for Action, Page 3    Cost & Tax Impact of Improvements  It is anticipated that expenses associated with the project would be approximately $196,964. Revenue from the  sale of the lot would be $70,000, resulting in an estimated net loss of $126,964. The new home would result in  a significant increase in the subject parcel’s taxable market value. If the new home were to be valued at $475,000  in 2025, it is estimated that total taxes payable to the city in 2026 would increase by $2,283 as compared to those  that are payable to the city in 2024. 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, 2023, is used for taxes that are payable in  2024.    Old House New House   Taxable Market Value 2023,  Payable 2024  Projected Taxable Market  Value 2025, Payable 2026  Change Percent  Change  $94,500 $475,000 $380,500 402.65%         Estimated Taxes Allocated to  City 2023, Payable 2024  Projected Taxes Allocated to  City 2025, Payable 2026  Change Percent  Change  $567 $2,850 $2,283 402.65%    The following table illustrates the Return on Investment (ROI) and tax benefit associated with the estimated  increase in taxable property value in one year and in 30 years.    # of Years  (Year payable)  Additional Taxes Collected  By City – Cumulative Total  Total Cost/  Revenue  Return On  Investment  1 (payable 2026) $2,283.00 $(124,681.00) ‐98.20%  30 (payable 2055) $108,614.67 $(18,349.33) ‐14.45%  *Please refer to the attached documents for details on the estimated tax impact of improvements and ROI calculations     The estimated ROI for the project over 30 years is ‐14.45% and the estimated Internal Rate of Return (IRR) for  the project over 30 years is ‐0.86% (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).    Development Agreement and Next Steps  Staff worked with the city attorney to draft a resolution and Purchase and Redevelopment Agreement for the  sale of the lot. The agreement ensures that the provisions set forth in the RFP will be met and sets the purchase  price of the lot at $70,000. The agreement included in the attachments is considered complete by staff and the  city attorney; however, some minor revisions may be necessary once fully reviewed by the buyer. Any    Request for Action, Page 4    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. Great Buy Homes is requesting additional time to  complete the closing as the builder has three other projects currently in progress in New Hope. It has been  requested that the city allow for up to 120 days, instead of the standard 60 days, for closing on the sale of 5802  Boone Avenue North. The Purchase and Redevelopment Agreement stipulates that the home must be  completed within a year of the closing date.  Funding  Funding for this project came from the 2023 EDA budget. The city budgeted $500,000 for scattered site projects  in 2023.    Project Estimated Net Cost  5802 Boone Ave N $126,964.00  5243 Oregon Ave N $163,620.00  4965 Winnetka Ave N $158,972.00  Total $449,556.00     Annual Budget (2023) $500,000.00  Under/Over Budget +$50,444.00    Recommendation  Staff recommends that the EDA conduct a public hearing and approve a resolution approving the sale of the  scattered site lot located at 5802 Boone Avenue North to Great Buy Homes and allowing up to 120 days for the  sale of the lot to Great Buy Homes.  Attachments   Resolution   Purchase and Redevelopment Agreement with RFP and proposed plans   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 AGREEMENT WITH GREAT BUY HOMES, INC. FOR THE SALE OF 5802 BOONE AVENUE NORTH (IMPROVEMENT PROJECT NO. 1088) 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 5802 Boone Avenue North, New Hope, MN, 55427, P.I.D. 06-118-21-42-0028, and legally described on the attached Exhibit A (the “Property”) as evidenced by the Special/Limited Warranty Deed recorded with the Hennepin County Registrar of Title’s Office on April 14, 2023, as Document No. 6007905; and WHEREAS, the EDA purchased the Property with the intention of razing the existing house and all site improvements in preparation for the sale to a builder to construct a new single family home; and WHEREAS, in response to a Request for Proposal (“RFP”) sent by New Hope City staff to various builders, the EDA received an offer from GREAT BUY 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 purchase price of $70,000.00 upon all of the terms set forth in the RFP; and WHEREAS, the EDA has accepted Great Buy’s offer and has presented a draft Purchase and Redevelopment Agreement for the Property to Great Buy for its review, a copy of which is attached hereto as Exhibit A (“Purchase and Redevelopment Agreement”) and incorporated herein by reference; and WHEREAS, it is in the best interest of the EDA to sell the Property to Great Buy for the sum of $70,000.00, in order for Great Buy to redevelop and build a new single family home in accordance with the City’s scattered site housing program and policy; and WHEREAS, the City staff is hereby seeking approval from the EDA of the Purchase and Redevelopment Agreement, subject to other terms relating to the closing on the sale of the Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. 2. That the sale of the Property by the EDA to GREAT BUY HOMES, INC., for the purchase price of $70,000, with other terms and conditions as set forth in the Purchase and Redevelopment Agreement attached hereto as Exhibit A, is approved subject to the review and approval by the City Attorney of the final language and exhibits to the Purchase and Redevelopment Agreement relating to the closing on the sale of the Property, it being in the best interest of the EDA to sell the Property for redevelopment and construction of a single-family home in accordance with the City’s scattered site housing program and policy. 3. The EDA shall use due diligence for selling the Property to GREAT BUY HOMES, INC. for the construction of a single-family home, so as to return the Property to the tax rolls for the benefit of all taxing jurisdictions. 4. The President, Executive Director and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the sale of the Property in accordance with the Purchase and Redevelopment Agreement. Dated the 28th day of August, 2023. ____________________________________ Kathi Hemken, President Attest: _____________________________ Reece Bertholf, Executive Director Exhibit A Legal Description of Property That part of Lot 1, lying South of the following described line: Commencing at a point on the Westerly line of said Lot 1, distant 219.75 feet Northeasterly from the Southwest corner of said Lot 1, thence Easterly to a point on the East line of said Lot 1, distant 246.23 feet North of the Southeast corner of said Lot 1, and there terminating, except that part of said Lot lying South of a line drawn parallel to the Southerly line of said lot from a point on the Westerly line of said lot distant 125 feet Northerly of the Southwesterly corner of said lot and extending Easterly to the Easterly line of said Lot, Block 2, Meadow Lake Terrace, Hennepin County, Minnesota (the “Property”). Exhibit B Purchase and Redevelopment Agreement See attached. P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11446 5802 Boone Ave N\Resolution Approving Sale of 5802 Boone Ave N.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 August ___, 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 5802 Boone Avenue North, New Hope, MN 55427, PID 06-118-21-42-0028 legally described on the attached Exhibit A (the “Property”). 1. Purchase Price. The purchase price for the Property is Seventy Thousand and No/100 Dollars ($70,000.00) (the “Purchase Price”), which Buyer shall pay as follows: an initial payment of Two Thousand and No/100 Dollars ($2,000.00) (the “Earnest Money”), which sum shall be paid to Seller upon Buyer and Seller’s execution of this Agreement and Sixty Eight Thousand and No/100 Dollars ($68,000.00) payable by wire, cashier’s check or cash on the “Date of Closing”, as that term is defined in paragraph 6 below. There are no items of personal property or fixtures included in this sale. 2. Title Conveyed. On the Date of Closing, Seller shall deliver a Quit Claim Deed (the "Deed") to Buyer conveying marketable title of record, free and clear of liens, encumbrances, assessments, and restrictions, except for the “Permitted Encumbrances” set forth on Exhibit B and the restrictive covenants referenced below in paragraph 4.b. 3. Representations of Seller. Seller represents and agrees as follows: a. Seller owns the Property and has the right to sell the same, and that there are no unrecorded contracts, leases, easements or other agreements or claims of any third party affecting the use, title, occupancy or development of the Property, there are no parties other than Seller in possession of any portion of the Property, and no person, firm or entity has any right of refusal, option or other right to acquire all or any part of the Property. b. Seller has not received any notice from any governmental authority concerning any eminent domain, condemnation, special taxing district, or rezoning proceedings. c. To the best of Seller’s knowledge, there are no septic systems or wells on the Property other than the sealed well as described on 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 December 26, 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 August 28, 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 Reece Bertholf, 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: August____, 2023 By: _______________________________ Reece Bertholf Its: Executive Director Dated: August____, 2023 BUYER: GREAT BUY HOMES, INC. By: ________________________________ Glenn Hammer Its: President Dated: August ____, 2023 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of August, 2023, by Kathi Hemken and Reece Bertholf, the President and Executive Director, respectively, of the Economic Development Authority in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of the State of Minnesota. _______________________________ Notary Public 11 STATE OF MINNESOTA ) ) ss. COUNTY OF _____________ ) The foregoing instrument was acknowledged before me this ___ day of August, 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 1, lying South of the following described line: Commencing at a point on the Westerly line of said Lot 1, distant 219.75 feet Northeasterly from the Southwest corner of said Lot 1, thence Easterly to a point on the East line of said Lot 1, distant 246.23 feet North of the Southeast corner of said Lot 1, and there terminating, except that part of said Lot lying South of a line drawn parallel to the Southerly line of said lot from a point on the Westerly line of said lot distant 125 feet Northerly of the Southwesterly corner of said lot and extending Easterly to the Easterly line of said Lot, Block 2, Meadow Lake Terrace, Hennepin County, Minnesota (the “Property”). Registered Torrens Property: Certificate of Title No. 1560532 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 December, 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 August ___, 2023 (“Purchase Agreement”), Great Buy purchased the real property located at 5802 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 December ___, 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 December ___, 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: Reece Bertholf 4401 Xylon Avenue North New Hope, MN 55428 rbertholf@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: _______________________________ Reece Bertholf Its: City Manager Dated: December ___, 2023 GREAT BUY HOMES, INC. By: _______________________________ Glenn Hammer Its: President Dated: December ___, 2023 STATE OF MINNESOTA COUNTY OF HENNEPIN }ss. The foregoing instrument was acknowledged before me this ___ day of December, 2023, by Reece Bertholf, the City Manager of the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. (Notary Public Seal) _______________________________________ Notary Public STATE OF MINNESOTA } ss. COUNTY OF ___________ The foregoing instrument was acknowledged before me this ___ day of December, 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 1, lying South of the following described line: Commencing at a point on the Westerly line of said Lot 1, distant 219.75 feet Northeasterly from the Southwest corner of said Lot 1, thence Easterly to a point on the East line of said Lot 1, distant 246.23 feet North of the Southeast corner of said Lot 1, and there terminating, except that part of said Lot lying South of a line drawn parallel to the Southerly line of said lot from a point on the Westerly line of said lot distant 125 feet Northerly of the Southwesterly corner of said lot and extending Easterly to the Easterly line of said Lot, Block 2, Meadow Lake Terrace, Hennepin County, Minnesota (the “Property”). Registered Torrens Property: Certificate of Title No. 1560532 P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11446 5802 Boone Ave N\Restrictive Covenant.docx 15 Exhibit D Assessment Agreement 1 ASSESSMENT AGREEMENT THIS ASSESSMENT AGREEMENT (“Agreement”) dated effective as of the ____ day of December, 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 August __, 2023 (“Purchase Agreement”) Great Buy purchased the real property located at 5802 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 December ___, 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 December ___, 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 December___, 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: Reece Bertholf 4401 Xylon Avenue North New Hope, MN 55428 rbertholf@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: _______________________________ Reece Bertholf Its: City Manager Dated: December ___, 2023 GREAT BUY HOMES, INC. By: _______________________________ Glenn Hammer Its: President Dated: December ___, 2023 STATE OF MINNESOTA COUNTY OF HENNEPIN }ss. The foregoing instrument was acknowledged before me this ___ day of December, 2023, by Reece Bertholf, the City Manager of the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. (Notary Public Seal) _______________________________________ Notary Public STATE OF MINNESOTA } ss. COUNTY OF ______________ The foregoing instrument was acknowledged before me this ____ day of December, 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\99-11446 5802 Boone Ave N\Assessment Agreement.docx 5 Exhibit A Legal Description That part of Lot 1, lying South of the following described line: Commencing at a point on the Westerly line of said Lot 1, distant 219.75 feet Northeasterly from the Southwest corner of said Lot 1, thence Easterly to a point on the East line of said Lot 1, distant 246.23 feet North of the Southeast corner of said Lot 1, and there terminating, except that part of said Lot lying South of a line drawn parallel to the Southerly line of said lot from a point on the Westerly line of said lot distant 125 feet Northerly of the Southwesterly corner of said lot and extending Easterly to the Easterly line of said Lot, Block 2, Meadow Lake Terrace, Hennepin County, Minnesota (the “Property”). Registered Torrens Property: Certificate of Title No. 1560532 16 Exhibit E Request for Proposal (“RFP”) Guidelines See attached. City of New Hope, Minnesota Request For Proposals – 5802 Boone Avenue North Date: July 25, 2023 From: The Economic Development Authority (EDA) in and for the city of New Hope Subject: Request for proposals for construction of new single-family home at 5802 Boone Avenue North. Overview: The city of New Hope EDA owns the property located at 5802 Boone Avenue North, New Hope, MN 55428 (PID 06-118-21-42-0028). The EDA is requesting proposals from builders to purchase the vacant lot for the construction of a new single-family home. The lot is being offered as part of the city’s scattered site housing program, which focuses on the removal and rehabilitation of distressed properties. The site was previously occupied by a home that was razed by the EDA. Enclosed, please find the Proposal Form and specifications for submitting a proposal. Minimum Lot Price: This lot is being offered at a minimum base price of $70,000. The EDA will consider higher offers for the lot; however, submitting a higher offer does not guarantee selection of a proposal. Submission: Interested bidders must submit enclosed Proposal Form by mail, e-mail, or in person. All documents submitted will be made available to the public and presented at an EDA meeting. Proposals shall be submitted to Jeff Alger, Community Development Specialist. City of New Hope Community Development Department Attention: Jeff Alger 4401 Xylon Avenue North New Hope, MN 55428 jalger@newhopemn.gov Deadline: Proposals must be submitted using the enclosed bid form and received no later than August 16, 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 make a selection at the August 28, 2023, meeting. Construction of the new home must be completed in full no later than one (1) year after the closing on the purchase of the lot. City of New Hope, Minnesota Proposal Form Property Owner: City of New Hope Economic Development Authority (EDA) Property Address: 5802 Boone Avenue North, New Hope, MN 55428 Property Identification Number: 06-118-21-42-0028 Minimum Lot Price: This lot is being offered at a minimum base price of $70,000. The EDA will consider higher offers for the lot; however, submitting a higher offer does not guarantee selection of a proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase this lot for $____________________ ($70,000 minimum) and build a new single-family home in accordance with the RFP guidelines. If a builder’s proposal is accepted by the EDA, the builder will be asked to enter into a purchase and development agreement and provide $2,000 earnest money for the lot. Only after such an agreement is signed would a binding contract exist between the EDA and the builder. Company Name: _______________________________________________________________ License Number: ________________________________________________________________ Address: ___________________________________ ___________________________________ Telephone: ______________________________________________________________________ Email: ____________________________________________________________________________ Name & Title: ____________________________________________________________________ Signature: ______________________________________ Date: ____________________ City of New Hope, Minnesota General Notes 1. Only complete proposals will be considered. The city retains absolute discretion in deciding whether or not to accept any particular proposal. 2. State licensed builders who have built at least three (3) homes in Minnesota in the last five (5) years, or have equivalent experience acceptable to the city, are eligible to submit proposals. The home may be speculative or for specific buyers. 3. The city is interested in proposals that will generate the highest valued, owner occupied, single-family home. Owner occupancy restrictions will be documented in the development agreement and secured with a restrictive covenant recorded against the property. The occupancy requirement only applies to the first buyer and lasts for a period of two (2) years. A full legal description relating to this requirement is available upon request. 4. A two-story or rambler design is preferred for the lot as these types of homes have commanded the highest prices when compared to other home styles such as split entry. Preference will be given to proposals with the most finished square footage that include high quality exterior materials and upgraded interior amenities. Previously approved plans are available upon request. 5. After proposals have been received, city staff will review and recommend a preferred builder/design at the next regularly scheduled EDA meeting. Within one (1) week of approval by the EDA, the selected builder will enter into a purchase and development agreement that will address the sale of the lot and secure all applicable development and performance standards outlined in the proposal guidelines. At the time of this agreement, the builder will be required to submit a $2,000 nonrefundable earnest money deposit. Closing on the purchase of the lot must take place within 60 days of final EDA approval. The buyer will be responsible for paying the following costs associated with the purchase: • Preparation and issuance of the title commitment. • The cost of the owner’s policy or lender’s policy of title insurance (if any), sales tax (if any) resulting from the closing, the fees required for recording the deed, the purchase and redevelopment agreement, the assessment agreement and restrictive covenants, and all customary closing fees charged by the title company or other closing agent, if any, utilized to close the transaction contemplated by this agreement (paid at closing). 6. Construction of the new home must be completed within one (1) year of closing on the purchase of the lot. City of New Hope, Minnesota Specifications 1. Utilities a. All utility service lines shall be underground. Utilities may install necessary facilities such as pedestals or boxes in the street right-of-way or utility and drainage easements. b. The builder shall be responsible for any expenses associated with connecting the home to private utilities. c. The lot was previously serviced with power that crossed Boone Avenue North. That power line and pole have been removed by Xcel Energy and a new line must be installed to supply power to the future home. Per Xcel Energy, the service installation route will be from the power pole at the northeast corner of Bass Lake Road and Boone avenues. The meter box for the home must be located on the west side of the house/garage to reduce the installation distance, minimize voltage drop, ensure a reliable power supply, and reduce install costs to the builder. The installation will cost roughly $5,000, with the exact amount based on distance measurements taken during installation. A narrow easement from 5800 Boone Avenue North will be necessary, as Xcel Energy will install the buried line on the east side of the sidewalk and the right-of-way is not wide enough. The contract for this easement will be drawn up by Xcel Energy and the builder will be responsible for getting the resident to sign it. City staff can assist with facilitating this process. The easement will be small, near the street, and Xcel Energy’s boring machine will not cause significant damage or disruption to the owner’s yard. The builder shall be responsible for expenses associated with running the new line and obtaining the easement. The minimum lot price has been adjusted to reflect this expense. Contact Evan Fuller with Xcel Energy (612-216-8010, evan.j.fuller@xcelenergy.com) for more information. d. Municipal water is available into the lot on the west side of the property (Boone Avenue North) and the location of the service is marked onsite. A new curb stop box was installed in July of 2023. e. Municipal sanitary sewer will be available into the lot on the north side of the property (Boone Place) and the location of the service will be marked onsite. The EDA will be coordinating installation of a new six (6) inch line as shown in the attached diagram. Installation is scheduled for August. The line that serviced the previous home came off Boone Avenue North and has been capped. City of New Hope, Minnesota Specifications (continued) 2. Building Standards and Design Guidelines a. All site improvements shall comply with the New Hope City Code. b. The front of the home and garage shall face north, Boone Place. c. The home shall have at least three (3) finished bedrooms, two (2) finished bathrooms, and an attached garage that will accommodate a minimum of two (2) vehicles. Three (3) stall garages are preferred. d. The design should emphasize the front door as the focal point for the front of the home. A large and usable front porch is desired. Garage door dominance in the design should be minimized as much as possible. Front door and garage door designs with windows are preferred. e. If an above-grade patio door is included, the inclusion of a deck is preferred. f. Equipment such as air-conditioning cooling structures or condensers that generate noise shall not be located within the front yard, side yard setback, or drainage and utility easement. g. Plans should present a balanced and pleasing distribution of wall and window areas from all views. Blank walls are not permitted. To the extent that southern exposures are present, home designs are expected to enhance wintertime natural light and passive solar heating. h. Exterior materials (siding, soffit, doors, and windows) shall be low maintenance. The use of brick or stone accents and incorporation of address numbers into the brick or stone is preferred. Vinyl or other low maintenance siding materials are generally acceptable and can be made more desirable with the use of shakes, fish scales, board and batten, or other styles to break up the pattern. City of New Hope, Minnesota Specifications (continued) i. The driveway for the new home must be completely new and fully paved from the street to the garage. Driveways are not allowed within three (3) feet of any property line abutting another property and may not be placed above sewer lines or curb stop boxes. The curb cut/driveway access shall be located at least 40 feet east of the northwest corner of the property. 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 along Boone Avenue North shall be replaced with new curbing and the driveway apron shall be removed. New curb cuts and curbing must meet City Code requirements and must be approved by the Public Works Department. Builder shall be responsible for removing and patching existing bituminous roadway (18” minimum) in areas adjacent to where curbing and/or gutter are impacted. 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. Landscaping a. The lot shall be landscaped to be aesthetically pleasing in all seasons. Landforms and plant materials shall be used to define the site and blend neatly with adjoining properties. The lot area remaining after providing for off-street parking, sidewalks, driveways, buildings, and other requirements shall be landscaped using ornamental grass, shrubs, trees, or other acceptable vegetation or treatment generally used in landscaping. The use of grass seed or hydro-seed is not acceptable for restoration of disturbed areas. All grass that is planted must be sod. Additionally, all lawn areas must be irrigated with underground irrigation systems. b. A minimum of two (2) large-species deciduous shade tree shall be planted on the lot. Trees must be a minimum of two (2) inches in diameter. A list of prohibited trees is attached. c. Foundation plantings with landscaping rock or wood chips and edging around the foundation of the home are preferred. City of New Hope, Minnesota Specifications (continued) 4. Setbacks While the City Code requires a setback to the north of at least 20 feet, it is requested that the new home be placed 25 feet south of the north property line to align with the existing homes to the east. Front Yard (west) Rear Yard (east) Interior Side Yard (south) Side Yard Abutting Street (north) 30’ Garage = 10’ Home = 25’ Home = 10’ 20’ Requesting 25’ 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) homes they have built in Minnesota within the last five (5) years, or evidence of qualification acceptable to the EDA. c. Builder must be capable of completing the home within one (1) year of closing on the purchase of the lot. d. Builder must be licensed as a Residential Building Contractor in Minnesota. e. Builder shall provide the addresses of three (3) homes they have built in Minnesota within the last five (5) years, or evidence of qualifications acceptable to the EDA. f. Builder must be capable of completing the home within one (1) year of closing on the purchase of the lot. City of New Hope, Minnesota Specifications (continued) 6. Required Attachments by Builder • Upgrade checklist (attached). • Site plan showing the layout of the home on the lot. Include dimensions and setbacks. • 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 interior trim package, including flooring. • Estimated sale price of the home. • Pictures of similar homes (if available). Attachments • Recent home sales • Previous scattered site projects • Upgrade checklist • Location map • Sample lot layout • Sewer connection specifications • 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 $450,000 or more since June 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 8608 36 1/2 Cir N $496,000 5/2023 1,890 3 4 1969 7202 51st Ave N $490,000 6/2022 2,306 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 8710 60th Ave N $473,500 6/2022 2,711 4 2 1961 5510 Virginia Ave N $465,000 8/2022 2,778 4 4 2017 4024 Ensign Ave N $462,000 6/2023 2,159 4 2 1966 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 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 8908 40th Ave N $451,000 4/2023 2,348 3 2 1966 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 5306 Rhode Island Avenue North List price $579,360 2,259 4/3 Fieldstone Family 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  Three-stall garage  Vaulted ceilings  Wood flooring Kitchen  Backsplash/tile on walls  Center island  Custom cabinets  Granite/quartz countertops  Stainless steel appliances Other  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________  ___________________________________________________________________________________ 5802 Boone Ave N R-1, Single-family residential 137.89’137.89’ 132’132’≈123’≈123’94’94’Buildable Buildable AreaArea Potential Potential Home & GarageHome & GaragePotential Potential DrivewayDrivewayRequested Requested setbacksetback 5802 Boone Ave N R-1, Single-family residential 58025802 Sewer Line Installation - 5802 Boone Avenue North Boone Avenue NorthBoone Place 1 23 4 Specifications 1. Existing manhole. 2. Existing 9” clay sewer. 3. Contractor must cut in “Y” sewer connection 15’ east of manhole and install 6” PVC up to property line (13’ south of curb line). Connection must be at least 10’ west of easterly property line. Sewer line may not encroach into right-of-way in front of neighbor’s house to the east. Contractor must restore all curbing and asphalt. Asphalt patch to be sawcut. Asphalt patch section to be a minimum of 10” of class 5 aggregate base, 2” of bituminous base, and 1.5” of bituminous wear. 4. Contractor must cap and mark new sewer line. 15’ 10’ To be completed and paid for by city in early August 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 ℄EXISTING ROADWAY REMOVE EXISTING BITUMINOUS D428 CONCRETE CURB & GUTTER SAWCUT 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. t 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:  Amur Maple  Black Locust  Boxelder  Ginko (female only)  Green, White, or Black Ash (fraxinus species)  Mulberry  Non-disease resistant elm species  Nonhybrid cottonwood species  Russian Olive Buckthorn  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\99-11446 5802 Boone Ave N\Purchase and Redevelopment Agreement.docx Budget for 5802 Boone Ave N EXPENSES AMOUNT Acquisition (119,600.00)$ Legal/closing costs for purchase (estimated)(5,000.00)$ Demolition survey (650.00)$ Demolition and site prep (55,400.00)$ Sewer line installation (8,500.00)$ Real estate taxes (estimated at 6 months)(1,864.00)$ Lawn services (estimated)(2,000.00)$ Utility billing (estimated)(300.00)$ Public hearing notice (estimated)(150.00)$ Closing costs for sale (estimated)(1,500.00)$ Legal costs for sale (estimated)(2,000.00)$ TOTAL (196,964.00)$ REVENUE AMOUNT EDA (estimated lot sale proceeds)70,000.00$ TOTAL 70,000.00$ TOTAL COST/REVENUE (126,964.00)$ Taxable Market Value 2023, Payable 2024 Projected Taxable Value 2025, Payable 2026 Change Percent Change 94,500.00$ 475,000.00$ 380,500.00$ 402.65% Estimated Taxes Allocated to City 2023, Payable 2024 Projected Taxes Allocated to City 2025, Payable 2026 Change Percent Change 567.00$ 2,850.00$ 2,283.00$ 402.65% Projected Project Expenses (196,964.00)$ Lot Sale Revenue 70,000.00$ Total Cost/Revenue (126,964.00)$ # of Years (Year) Additional Taxes Collected By City Total Cost/ Revenue Return On Investment 0 (present)-$ (126,964.00)$ -100.00% 1 (payable 2026)2,283.00$ (124,681.00)$ -98.20% 2 (payable 2027)4,634.49$ (122,329.51)$ -96.35% 3 (payable 2028)7,056.52$ (119,907.48)$ -94.44% 4 (payable 2029)9,551.22$ (117,412.78)$ -92.48% 5 (payable 2030)12,120.76$ (114,843.24)$ -90.45% 10 (payable 2035)26,172.04$ (100,791.96)$ -79.39% 15 (payable 2040)42,461.32$ (84,502.68)$ -66.56% 20 (payable 2045)61,345.06$ (65,618.94)$ -51.68% 25 (payable 2050)83,236.50$ (43,727.50)$ -34.44% 30 (payable 2055)108,614.67$ (18,349.33)$ -14.45% *Based on new home valued at $475,000 Estimated Tax Impact of Improvements at 5802 Boone Ave N Estimated Return on Investment for 5802 Boone Ave N Description Taxable Market Value Change Cash Flow Investment -$ (126,964.00)$ Return, Year 1 380,500.00$ 2,283.00$ Return, Year 2 391,915.00$ 2,351.49$ Return, Year 3 403,672.45$ 2,422.03$ Return, Year 4 415,782.62$ 2,494.70$ Return, Year 5 428,256.10$ 2,569.54$ Return, Year 6 441,103.79$ 2,646.62$ Return, Year 7 454,336.90$ 2,726.02$ Return, Year 8 467,967.01$ 2,807.80$ Return, Year 9 482,006.02$ 2,892.04$ Return, Year 10 496,466.20$ 2,978.80$ Return, Year 11 511,360.18$ 3,068.16$ Return, Year 12 526,700.99$ 3,160.21$ Return, Year 13 542,502.02$ 3,255.01$ Return, Year 14 558,777.08$ 3,352.66$ Return, Year 15 575,540.39$ 3,453.24$ Return, Year 16 592,806.60$ 3,556.84$ Return, Year 17 610,590.80$ 3,663.54$ Return, Year 18 628,908.52$ 3,773.45$ Return, Year 19 647,775.78$ 3,886.65$ Return, Year 20 667,209.05$ 4,003.25$ Return, Year 21 687,225.32$ 4,123.35$ Return, Year 22 707,842.08$ 4,247.05$ Return, Year 23 729,077.35$ 4,374.46$ Return, Year 24 750,949.67$ 4,505.70$ Return, Year 25 773,478.16$ 4,640.87$ Return, Year 26 796,682.50$ 4,780.10$ Return, Year 27 820,582.98$ 4,923.50$ Return, Year 28 845,200.47$ 5,071.20$ Return, Year 29 870,556.48$ 5,223.34$ Return, Year 30 896,673.18$ 5,380.04$ Total Returns 108,614.67$ Investment Cost 196,964.00$ Selling Price 70,000.00$ Return on Investment -14.45% Description Amount Investment (126,964.00)$ Return, Year 1 2,283.00$ Return, Year 2 2,351.49$ Return, Year 3 2,422.03$ Return, Year 4 2,494.70$ Return, Year 5 2,569.54$ Return, Year 6 2,646.62$ Return, Year 7 2,726.02$ Return, Year 8 2,807.80$ Return, Year 9 2,892.04$ Return, Year 10 2,978.80$ Return, Year 11 3,068.16$ Return, Year 12 3,160.21$ Return, Year 13 3,255.01$ Return, Year 14 3,352.66$ Return, Year 15 3,453.24$ Return, Year 16 3,556.84$ Return, Year 17 3,663.54$ Return, Year 18 3,773.45$ Return, Year 19 3,886.65$ Return, Year 20 4,003.25$ Return, Year 21 4,123.35$ Return, Year 22 4,247.05$ Return, Year 23 4,374.46$ Return, Year 24 4,505.70$ Return, Year 25 4,640.87$ Return, Year 26 4,780.10$ Return, Year 27 4,923.50$ Return, Year 28 5,071.20$ Return, Year 29 5,223.34$ Return, Year 30 5,380.04$ Total Returns 108,614.67$ Internal Rate of Return -0.86% Estimated Internal Rate of Return for 5802 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 94,500.00$ 475,000.00$ 380,500.00$ 2,283.00$ 2 97,335.00$ 489,250.00$ 391,915.00$ 2,351.49$ 3 100,255.05$ 503,927.50$ 403,672.45$ 2,422.03$ 4 103,262.70$ 519,045.33$ 415,782.62$ 2,494.70$ 5 106,360.58$ 534,616.68$ 428,256.10$ 2,569.54$ 6 109,551.40$ 550,655.19$ 441,103.79$ 2,646.62$ 7 112,837.94$ 567,174.84$ 454,336.90$ 2,726.02$ 8 116,223.08$ 584,190.09$ 467,967.01$ 2,807.80$ 9 119,709.77$ 601,715.79$ 482,006.02$ 2,892.04$ 10 123,301.07$ 619,767.26$ 496,466.20$ 2,978.80$ 11 127,000.10$ 638,360.28$ 511,360.18$ 3,068.16$ 12 130,810.10$ 657,511.09$ 526,700.99$ 3,160.21$ 13 134,734.40$ 677,236.42$ 542,502.02$ 3,255.01$ 14 138,776.44$ 697,553.51$ 558,777.08$ 3,352.66$ 15 142,939.73$ 718,480.12$ 575,540.39$ 3,453.24$ 16 147,227.92$ 740,034.52$ 592,806.60$ 3,556.84$ 17 151,644.76$ 762,235.56$ 610,590.80$ 3,663.54$ 18 156,194.10$ 785,102.63$ 628,908.52$ 3,773.45$ 19 160,879.92$ 808,655.70$ 647,775.78$ 3,886.65$ 20 165,706.32$ 832,915.38$ 667,209.05$ 4,003.25$ 21 170,677.51$ 857,902.84$ 687,225.32$ 4,123.35$ 22 175,797.84$ 883,639.92$ 707,842.08$ 4,247.05$ 23 181,071.77$ 910,149.12$ 729,077.35$ 4,374.46$ 24 186,503.93$ 937,453.59$ 750,949.67$ 4,505.70$ 25 192,099.04$ 965,577.20$ 773,478.16$ 4,640.87$ 26 197,862.01$ 994,544.52$ 796,682.50$ 4,780.10$ 27 203,797.87$ 1,024,380.85$ 820,582.98$ 4,923.50$ 28 209,911.81$ 1,055,112.28$ 845,200.47$ 5,071.20$ 29 216,209.17$ 1,086,765.65$ 870,556.48$ 5,223.34$ 30 222,695.44$ 1,119,368.62$ 896,673.18$ 5,380.04$ 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 5802 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) 5802 Boone Avenue North 4965 Winnetka Avenue North 3611 Louisiana Avenue North 4201 Boone Avenue North 5306 Rhode Island Avenue North 5213 Pennsylvania Avenue North 4637 Aquila Avenue North 4215 Louisiana Avenue North Number of Units 1 2 1 2 1 1 1 1 Project Description Demolition & rebuild Demolition, lot split & rebuild Demolition & rebuild Demolition, lot split & rebuild Demolition & rebuild Demolition & rebuild Demolition & rebuild Demolition & rebuild Year Acquired 2023 2023 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) Projected (at time of lot sale) Projected (at time of lot sale) Expenses ($196,964.00) ($318,972.00) ($258,423.00) ($344,888.00) ($253,072.00) ($205,172.18) ($127,292.01) ($170,441.53) Revenue $70,000.00 $160,000.00 $75,000.00 $161,000.00 $87,000.00 $72,000.00 $81,000.00 $69,000.00 Total Cost/Revenue ($126,964.00) ($158,972.00) ($183,423.00) ($183,888.00) ($166,072.00) ($133,172.18) ($46,292.01) ($101,441.53) Estimated Taxable Value of New Home(s) $475,000 $475,000 per home $950,000 total $475,000 $475,000 per home $950,000 total $575,000 $485,000 $445,000 $380,000 *Additional Taxes Collected by City - 1 year $2,283.00 $3,984.00 $1,344.00 $5,700.00 $2,100.00 $1,902.00 $1,254.00 $786.00 *Additional Taxes Collected by City - 30 years $108,614.67 $189,540.46 $63,941.36 $271,179.87 $99,908.37 $90,488.44 $59,659.57 $37,394.28 *Return On Investment - 30 years -14.45% 19.23% -65.14% 47.47% -39.84% -32.05% 28.88% -63.14% *Internal Rate of Return - 30 years -0.86% 1.02% -5.26% 2.33% -2.69% -2.08% 1.49% -5.01% *Assumed 3% tax value growth rate I:\RFA\COMM DEV\2023\EDA\4965 Winnetka Ave N\Q ‐ 4965 Winnetka Ave N Demolition Contract 08‐28‐23.docx    Request for Action  August 28, 2023    Approved by: Reece Bertholf, City Manager  Originating Department: Community Development  By: Jeff Alger, Community Development Specialist;   Jeff Sargent, Director of Community Development  Agenda Title  Resolution approving contract with Bollig & Sons, Inc. for hazardous material abatement, well sealing, removal  of appliances, demolition and disposal of remaining material following burn, tree removal, sewer lining and  water service valve replacement for existing services, installation of new sewer and water services and sump  pump stub for future second lot and site re‐grading at 4965 Winnetka Avenue North (improvement project no.  1060)  Requested Action  Staff requests approval of a resolution awarding a contract for hazardous material abatement, well sealing,  removal of appliances prior to controlled burn, demolition and disposal of remaining material following burn,  tree removal, sewer lining and water service valve replacement for existing services, installation of new sewer  services, water services, and sump pump stub for future second lot, and site grading at 4965 Winnetka Avenue  North, to the low and responsible bidder, Bollig & Sons, Inc. in the amount of $67,000 with a negative Toxicity  Characteristic Leaching Procedure (TCLP) test on remaining debris or $69,000 with a positive TCLP test.  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 4965 Winnetka Avenue North  for $230,000 in June of 2023, as part of the city’s scattered site housing program. The 0.5‐acre parcel is zoned R‐ 1, Single‐family Residential and is large enough to split into two lots without a variance in order to  accommodate the construction of two new homes. The existing lot abuts 50th Avenue North to the north and  Winnetka Avenue North to the east.    The West Metro Fire‐Rescue District department intends to conduct live fire training at the property on October  7, 2023. This will involve fire training exercises throughout the day. All flammable home material will be  burned upon conclusion of the training at the end of the day. In case of inclement weather, the training may be  moved to October 14, 2023. Hazardous materials such as asbestos and all items within the home must be  removed prior to the burn. All wells on the property must also be sealed. Staff from the West Metro Fire‐Rescue  District will be distributing notices and visiting neighboring properties this summer to discuss plans for the  day of the burn. Extensive work must be completed in order to prepare the property for the live fire training  and splitting of the lot, including:   Removing hazardous materials and appliances from home (prior to burn).   Sealing two existing wells (prior to burn).   Demolishing and disposing of remaining material following burn.   Removing a large number of trees.   Lining the existing sewer line and replacing the existing water service valve.  Agenda Section EDA Item Number  5    Request for Action, Page 2     Installing a new sewer line, water service valve, and sump pump stub for the future second lot.   Re‐grading the site.    Staff requested quotes from seven contractors, who submitted the following bids:    Bollig & Sons, Inc.  $67,000 with negative TCLP test  $69,000 with positive TCLP test    Nitti Rolloff Services Inc  $76,400 with negative TCLP test  $76,400 with positive TCLP test    Kevitt Excavating, LLC   $78,500 with negative TCLP test  $83,250 with positive TCLP test    The EDA has not worked with the low bidder, Bollig & Sons, Inc. on any recent projects. Donnay Homes, a  scattered site homebuilder that has built in New Hope has worked with Bollig & Sons, Inc. on some of their  previous projects and recommended the company. Bollig & Sons Inc. is a local excavating contractor that has  been serving the Twin Cities metro area since 1957. Staff does not have concerns with awarding the contract.  Funding  Funding is available in the EDA budget for the demolition contract.  Recommendation  Staff recommends approval of a resolution awarding a contract for hazardous material abatement, well sealing,  removal of appliances prior to controlled burn, demolition and disposal of remaining material following burn,  tree removal, sewer lining and water service valve replacement for existing services, installation of new sewer  services, water services, and sump pump stub for future second lot, and site grading at 4965 Winnetka Avenue  North to Bollig & Sons, Inc. in the amount of $67,000 with a negative TCLP test on remaining debris or $69,000  with a positive TCLP test.  Attachments   Resolution   Bids   Request For Quote/Project Specifications    EDA RESOLUTION NO. 23-___ RESOLUTION APPROVING CONTRACT WITH BOLLIG & SONS, INC. FOR HAZARDOUS MATERIAL ABATEMENT, WELL SEALING, REMOVAL OF APPLIANCES, DEMOLITION AND DISPOSAL OF REMAINING MATERIAL FOLLOWING BURN, TREE REMOVAL, SEWER LINING AND WATER SERVICE VALVE REPLACEMENT FOR EXISTING SERVICES, INSTALLATION OF NEW SEWER AND WATER SERVICES AND SUMP PUMP STUB FOR FUTURE SECOND LOT AND SITE RE-GRADING AT 4965 WINNETKA AVENUE NORTH (IMPROVEMENT PROJECT NO. 1060) 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 4965 Winnetka Avenue North, New Hope, MN (the “Property”) with the intention of redeveloping the Property and performing a simple lot split to create two residential lots; 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, well sealing, removal of appliances prior to controlled burn, demolition and disposal of remaining material following burn, tree removal, sewer lining and water service valve replacement for existing services, installation of new sewer services, water services, and sump pump stub for future second lot, and re-grading at the Property (“Work”); and WHEREAS, Bollig & Sons, 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 Bollig & Sons, Inc. for the purpose of performing the Work; and WHEREAS, City staff is hereby seeking approval from the EDA of the selection of Bollig & Sons, 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 Bollig & Sons, Inc. as the Contractor to perform hazardous material abatement, well sealing, removal of appliances prior to controlled burn, demolition and disposal of remaining material following burn, tree removal, sewer lining and water service valve replacement for existing services, installation of new sewer services, water services, and sump pump stub for future second lot, and re- grading at the Property 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 $67,000 with a negative Toxicity Characteristic Leaching Procedure (“TCLP”) test on the remaining debris or $69,000 with a positive TCLP test to Bollig & Sons, Inc. to perform the Work is hereby approved. 4. The President, Executive Director, and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to facilitate the completion of the Work at the Property in accordance with the contract to be prepared by the City Attorney. Dated the 28th day of August, 2023. ____________________________________ Kathi Hemken, President Attest: _____________________________ Reece Bertholf, Executive Director P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11452 4965 Winnetka Ave N\Resolution approving Demolition contract for 4965 Winnetka Ave N.docx City of New Hope, Minnesota Bid Form Property Owner: City of New Hope Economic Development Authority (EDA) Property Address: 4965 Winnetka Avenue North, New Hope, MN 55428 Property Identification Number: 07-118-21-14-0131 For the price stated below, the contractor named below proposes to fully complete the work in accordance with the attached specifications for hazardous material abatement, well sealing, removal of appliances, Toxicity Characteristic Leaching Procedure testing, demolition and disposal of remaining material following controlled burn on October 7 (or October 14 in the case of inclement weather), tree removal, sewer lining and water service valve replacement for existing services, installation of new sewer services, water services, and sump pump stub for future second lot, and re- grading of the primary excavation area. Price with negative TCLP test (standard demolition debris): _________________ Price with positive TCLP test: _________________ Contractor Name: _______________________________________________________________ License Number: ________________________________________________________________ Address: ___________________________________ ___________________________________ Telephone: ______________________________________________________________________ Email: ____________________________________________________________________________ Contractor Name & Title: _______________________________________________________ Signature: ______________________________________ Date: ____________________ Kevitt Excavating, LLC IR653759 3335 Pennsylvania Ave N Crystal, MN 55427 763-545-3557 Randyj@kevitt.com Randy Juday, Vice President 08/17/2023 $78,500.00 83,250.00 City of New Hope, Minnesota Request For Quote/Project Specifications Date: August 1, 2023 From: The Economic Development Authority (EDA) in and for the city of New Hope Subject: Request for quotes for hazardous material abatement, well sealing, removal of appliances prior to controlled burn, demolition and disposal of remaining material following burn, tree removal, sewer lining and water service valve replacement for existing services, installation of new sewer services, water services, and sump pump stub for future second lot, and re-grading at 4965 Winnetka Avenue North. Overview: The city of New Hope EDA owns the property located at 4965 Winnetka Avenue North, New Hope, MN 55428 (PID 07-118-21-14-0131). The EDA is requesting quotes for the removal of hazardous material, well sealing, removal of appliances, demolition and disposal of remaining material following controlled burn on October 7 (or October 14 in the case of inclement weather), and tree removal followed by sewer lining and water service valve replacement for existing services, installation of new utility services and sump pump stub for future second lot, and re-grading of the primary excavation area. If 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. Please call Jeff Alger in the Community Development Department with any questions at 763-531-5119. Submission: Interested bidders must submit the enclosed Bid Form by mail, e-mail, or in person. Bids shall be submitted to Jeff Alger, Community Development Specialist. City of New Hope Community Development Department Attention: Jeff Alger 4401 Xylon Avenue North New Hope, MN 55428 jalger@newhopemn.gov Deadline: Proposals must be submitted using the enclosed bid form and received no later than August 17, 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 August 28, 2023, meeting. Well sealing and hazardous material abatement shall be completed no later than October 2, 2023. The remainder of the work following the controlled burn shall be completed no later than November 30, 2023. City of New Hope, Minnesota Bid Form Property Owner: City of New Hope Economic Development Authority (EDA) Property Address: 4965 Winnetka Avenue North, New Hope, MN 55428 Property Identification Number: 07-118-21-14-0131 For the price stated below, the contractor named below proposes to fully complete the work in accordance with the attached specifications for hazardous material abatement, well sealing, removal of appliances, Toxicity Characteristic Leaching Procedure testing, demolition and disposal of remaining material following controlled burn on October 7 (or October 14 in the case of inclement weather), tree removal, sewer lining and water service valve replacement for existing services, installation of new sewer services, water services, and sump pump stub for future second lot, and re- grading of the primary excavation area. Price with negative TCLP test (standard demolition debris): _________________ Price with positive TCLP test: _________________ 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. On October 7 the home at this property will be burned by the fire department as part of a controlled burn exercise. In case of inclement weather, the burn may be moved to October 14. Any possessions and materials within the home will be removed by the fire department prior to the burn. All home and building materials that can burn will be burned. Contractor shall remove all appliances from the home prior to the burn. b. 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 the 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. Wimco inlet protection devices shall be placed in three (3) pictured catch basins. c. 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. Asbestos & Other Hazardous Materials a. Contractor shall submit “Notification of Intent to Perform a Demolition” form to the MPCA at least ten (10) business days prior to the controlled burn. The city has contracted with Angstrom Analytical for the completion of an asbestos survey for the property (attached). Demolition contractor is to provide for the removal, and appropriate disposal of all asbestos and other hazardous items listed in the report. Removal shall be completed prior to the controlled burn on October 7. b. The home was built in 1953 and may contain lead. After the controlled burn, contractor shall be responsible for completing and paying for Toxicity Characteristic Leaching Procedure (TCLP) testing. If the remaining material is deemed to contain lead, as specified in MN Statute 7035.0805 RENOVATION AND DEMOLITION Subp. 5., it shall be disposed of using a lined landfill permitted to accept such waste. Contractor shall provide separate bids for using the lined landfill and for disposing of the material as demolition debris. City of New Hope, Minnesota Specifications For Demolition & Related Work (continued) 3. Well Abandonment a. There are two (2) unsealed two (2)-inch wells with inner pipes near the northwest corner of the home. Contractor shall hire a state-licensed contractor to properly locate and seal the wells and record the sealings with the Minnesota Department of Health. Once sealed, the grout inside the well casings may not be disturbed. After sealing, the well casings can be cut off below grade at whatever elevation necessary for future redevelopment of the property. Contractor shall provide records of the well sealings to the city upon completion. Sealing of the wells shall be completed prior to the controlled burn on October 7. 4. Demolition & Disposal of Buildings & Site Improvements a. Any possessions and materials within the home will be removed by the fire department prior to the burn. All home and building materials that can burn will be burned. Contractor shall be responsible for cleanup and removal of the foundation, and all partially burned material. b. All buildings and site improvements shall be removed and properly disposed. Demolition to include, but not limited to decks, patios, stairs, ramps, floor slabs, equipment bases, foundation walls and footings, and other structure components, appurtenances, and contents associated with each structure, unless otherwise noted. Include removal of all out-buildings, items throughout the yard, landscaping rocks and boulders, retaining walls and concrete blocks, pavers, timbers, flagpoles, metal posts, clotheslines, and other miscellaneous items depicted in the attached photos. Sidewalk along Winnetka Avenue North and driveway apron in between sidewalk and street shall not be removed. Driveway/concrete/asphalt west of sidewalk along Winnetka Avenue North shall be removed. c. 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. d. 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) 5. Utilities a. Contractor shall be responsible for calling Gopher State One 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 pole prior to demolition. c. Lining of the existing sewer line, replacement of the existing water service valve, and installation of new sewer and water services for a future second lot shall be completed in accordance with the specifications below and attached Figure 2: “Proposed Utility Services.” Work can be completed after the controlled burn. i. Water service has been shut off at the curb stop box off Winnetka 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. Contractor shall be responsible for replacing any roadway, sidewalk, or curbing that is disturbed. ii. Contractor is to coordinate the termination of the private sewer line with Public Works. The sewer line shall be removed to within three (3) feet of the property line and the remaining service stub shall be lined with CIPP lining all the way to the main. Once lined, cap the end in preparation 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. Contractor shall be responsible for replacing any roadway, sidewalk, or curbing that is disturbed. iii. Contractor to coordinate installation of new sewer and water services and sump pump stub for a future second lot off 50th Avenue North. Figure 2 illustrates location of future sanitary sewer and water services as well as existing sewer and water connections. Contractor shall be responsible for replacing any roadway, sidewalk, or curbing that is disturbed. City of New Hope, Minnesota Specifications For Demolition & Related Work (continued) 6. Tree & Vegetation Removal a. All vegetation, shrubs, trees, tree stumps, and wood/brush 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. Tree removal can take place before or after the controlled burn. 7. Backfill, Compaction & Grading a. The basement drain will be sealed prior to the controlled burn, therefor there may be standing water within the foundation at the time of demolition. b. 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. c. 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. d. Upon completion of the finished grade, contractor shall immediately hydro- seed all disturbed areas of the site. 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 and new connections must also be inspected by the city’s Public Works staff. A separate water and sewer 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, well sealing documents, and TCLP results must be provided to the city. City of New Hope, Minnesota Specifications For Demolition & Related Work (continued) 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. 9. Miscellaneous Provisions & Notices a. Fire department shall provide demolition contractor with Fire/Incident Report following the controlled burn. b. Contractor shall erect and maintain all necessary barricades and warnings to adequately safeguard workers, adjacent property, and the public. c. 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. This includes the replacement of any damaged sidewalks adjacent to the property. d. 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. e. 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. City of New Hope, Minnesota Specifications For Demolition & Related Work (continued) Attachments • Site photos • Aerial map • Asbestos survey • Figure 2: Proposed Utility Services • Inlet protection specifications (ERO-4C) • Water service connection specifications (SER-1) • Sewer and water service connections (SER-1A) • PVC pipe specifications for sump pump stub (BED-1) • 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 apron Remove driveway up to sidewalk City of New Hope, Minnesota X X X X X X X X X City of New Hope, Minnesota X X X X City of New Hope, Minnesota X X X Do not remove neighbor’s fence City of New Hope, Minnesota X X X City of New Hope, Minnesota X X X X City of New Hope, Minnesota X X X X City of New Hope, Minnesota X X X City of New Hope, Minnesota X X X X X X X City of New Hope, Minnesota Install Wimco inlet protection devices (2) Install Wimco inlet protection devices Hennepin County Property Map Date: 7/27/2023 Comments: 1 inch = 100 feet PARCEL ID: 0711 821140 131 OWNER NAME: Ne w Ho pe Econ omic Dev Auth PARCEL ADDRESS: 4 965 W innetka Ave N,New Hope MN 55428 PARCEL AREA: 0 .5 acres, 21,893 sq ft A-T-B: Both SALE PRICE: SALE DATE: SALE CODE: ASSESSED 2022, PAYABLE 2023 PRO PERTY TYPE: Reside ntial H OMESTEAD: Ho me stead MARKET VALU E: $286,000 TAX TOTAL: $4,029.84 ASSESSED 2023, PAYABLE 2024 PROPERTY TYPE: Re sidential HOMESTEAD: Homeste ad MARKET VALUE: $289 ,10 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 2023 >>>>>>>>>>>>>>>>>>>>>>> SS U lllllllllllllll>>>>>>>>>>lT T T T T T T T T T T T T T T T T T T T T T T T T T T FO FO FO FO FO FO FO FO FO FO FO F O FO FO FO FO FO FO FO FO FO FO FO FO FO FOCCCCCCCC CCCCGGGGGGGGGGGGl l H l80.00' l l l l l l l l l l l ll llll8001 4957 5001 lll>>>>>>>>>>>>>WINNETKAAVEN(CSAH156)50TH AVE N DTDT9" CIPP (2016) 6" PVC (2015)9"VCP4" VCP 3/4" COPPER 12"CIPG G G G G G G G G G G G G G G G G GCCCCCCCCCCCCCCCCC C C C C C C C C C C C C C 80.00' OHP OHP OHP OHP OHP OHP OHP OHP OHP OHP OHP OHP OHP OHP OHP DT DT DT DT DT DT DT DT DT DT DT DT DT DT DT DT DT DT DT DT DTDTDATE PROJ. NO. 733 Marquette Avenue, Suite 1000 Minneapolis, MN 55402 www.stantec.com PROPOSED UTILITY SERVICES CITY OF NEW HOPE, MN 4965 WINNETKA AVENUE N SCATTERED SITE HOUSING PROJECT NO. 1060 7/18/2023 193806134 FIGURE2 0 30 60 LEGEND PROPOSED SANITARY SEWER SERVICE CIPP LINE EX. SANITARY SEWER SERVICE PROPOSED WATER SERVICE W/. CURB STOP & BOX CURB STOP & BOX 5 4 T H A V E N UTILITY NOTES 1 REMOVE EXISTING AND INSTALL NEW 34" CURB STOP AND BOX. FREEZE SERVICE LINE PRIOR TO WORK. PATCH EX. SIDEWALK. 2 TELEVISE AND CIPP LINE EXISTING 4" VCP SANITARY SEWER SERVICE (APPROX. 15 LF FROM ROW TO MAIN) 3 CUT IN 10" X 6" HDPE WYE AND CONNECT TO EX. 9" CIPP LINED VCP SEWER. EXTEND 30 LF OF 6" SCHEDULE 40 PVC WITH A MIN. 2.0% SLOPE AND INSTALL CAP. PATCH EXISTING PAVEMENT, CURB AND DRAINTILE. STAMP LOCATION IN CURB. 4 INSTALL 6" SADDLE, 1" CORP, 40 LF OF 1" COPPER, TYPE K WATER SERVICE WITH 1" CURB STOP AND BOX. PATCH EXISTING PAVEMENT, CURB AND DRAINTILE. STAMP LOCATION IN CURB. 5 INSTALL 4" X 4" WYE, 14 LF OF 4" SCHEDULE 40 PVC FOR SUMP PUMP STUB FOR WESTERLY LOT. STAMP LOCATION OF STUB IN CURB. REFER TO STANDARD CITY DETAIL FOR CONNECTION TO SUMP PUMP STUB. 2 GENERAL NOTES 1. NEW SERVICE LOCATIONS WILL BE VERIFIED IN THE FIELD BY OWNER. HOMEBUILDER IS RESPONSIBLE FOR EXTENDING SERVICES FROM RIGHT-OF-WAY TO NEW HOMES. 2. PROTECT ALL EXISTING TREES, UTILITIES, PAVEMENT, ETC. UNLESS OTHERWISE NOTED. 3. 50TH AVE N PAVEMENT PATCH TO EXTEND CURB TO CURB (FULL WIDTH) MATCH EXISTING WITH MINIMUM: 1.5" SP 9.5 WEAR COURSE (SPWEA240C) 2" SP 12.5 BINDER COURSE (SPNWB230B) 8" CLASS 5 AGGREGATE BASE 18" SELECT GRANULAR BORROW GEOTEXTILE FABRIC 4. SIDEWALK PATCH TO MATCH EXISTING. 5. UTILITY LOCATIONS AND ELEVATIONS ARE APPROXIMATE. CONTRACTOR TO FIELD VERIFY LOCATIONS AND ELEVATIONS. APPROXIMATE PROPOSED HOUSE FOOTPRINT(TYP.) l >>1 3 4 APPROXIMATE PROPOSED DRIVEWAY LOCATIONS 5 ÛÈò ìþ ÍËÓÐ ÐËÓÐ ÍÌËÞ ìþ ÐÛÎÚò ÜÎß×ÒÌ×ÔÛ øîðïë÷ ÛÈ ÍßÒ ÓØ Î×Ó ã õñó çïìòìì ×ÒÊ ã ãñó çðëòêð É OVERFLOW IS 1 2 OF THE CURB BOX HEIGHT PLAN OVERFLOW AT TOP OF FILTER ASSEMBLY OVERFLOW IS 1 2 OF THE CURB BOX HEIGHT DEFLECTOR PLATE HIGH-FLOW FABRIC FILTER ASSEMBLY DIAMETER, 6" ON-GRADE 10" AT LOW POINT CURB WIMCO ROAD DRAIN CG-3067* HIGH FLOW INLET PROTECTION CURB AND GUTTER MODEL OR CITY APPROVED EQUAL. * FOR THE NEW R-3290-VB STANDARD CASTING, INSTALL WIMCO ROAD DRAIN CG-3290 OR CITY APPROVED EQUAL. EXISTING CURB PLATE NO. LAST REVISION: ERO-4C Jan. 2005 INLET PROTECTION CATCH BASIN INSERT AFTER PAVING CITY OF NEW HOPE, MN MIN. 7'-0"CL VARIABLE VARIABLE VARIABLE CORPORATION STOP VARIABLECORPORATION STOP MUELLER B-25000 FORD F-600-4, F-600-6 McDONALD 4701-B CURB STOP MUELLER B-25154 FORD B22-444M, B22-666M McDONALD 6104 CURB BOX McDONALD 5614 NOTES: 1.SEE SPECIFICATIONS FOR APPROVED MANUFACTURERS. 2.CURB BOX SHALL EXTEND FROM 78" TO 90". 3.ALL PIPE SHALL BE BEDDED IN GRANULAR BORROW 3149.2B1. 4.IF CURB STOP IS IN DRIVEWAY, CONTRACTOR MUST INSTALL A FORD A-1 CASTING, WITH SMOOTH LID. 5.CURB BOX LID SHALL BE OFFSET 1 1/2" SET SCREW TYPE BY ESS BROTHERS OR APPROVED EQUAL. WATER MAIN 45° PLATE NO. LAST REVISION: WATER SERVICE CONNECTION SER - 1 MAY 2017 CITY OF NEW HOPE, MN CONNECT TO EX. WATER SERVICE CONCRETE BLOCK SUPPORT TYPE "K" COPPER WATER SERVICE CURB STOP AND BOX (ADJUST TO 1" BELOW FINISH GRADE) @ ROW ROW SUPPORT FOR CORPORATION AND GOOSENECK SHALL CONSIST OF A MINIMUM OF 0.5 C.Y. OF GRANULAR BORROW EQUAL TO MN/DOT 3149.2B1 THOROUGHLY COMPACTED CURB STOP AND BOX (ADJUST TO 1" BELOW FINISH GRADE) 6" DIA. PERFORATED PVC SLEEVE (3 FT.) INCIDENTAL NOTE: ALL FITTINGS AND APPURTENANCES FROM SANITARY SEWER MAIN TO 6" PVC COVER IS INCIDENTAL.4"X4"X8' WOOD FENCE POST 4' ABOVE GRADE ADJACENT TO CURB BOX CL VARIABLE (SEE PLAN) VARIABLE (SEE PLAN)1'-0"2"X2" MARKERWATER SERVICE SDR 11 PE PIPE CORPORATION STOPVARIABLESEE PLANVARIABLESEE PLANWATER MAIN PVC SEWER SERVICE SCHEDULE 40 MIN. SLOPE -1/4" PER FT. SANITARY SEWER SUPPORT FOR CORPORATION & GOOSENECK, AND CURB STOP SHALL EACH CONSIST OF A MINIMUM 0.5 C.Y. OF AGGREGATE EQUAL TO MN/DOT 3149.2B1 THROUGHLY COMPACTED WOOD 2"X2" MARKER TO BE CONTINUOUS FROM 6" BELOW SERVICE TO 12" ABOVE THE GROUND 45° BEND CURVED SEGMENTAL MANHOLE BLOCK 3' PVC RISER PLATE NO. LAST REVISION:SEWER AND WATER SERVICE CONNECTIONS FOR NEW CONSTRUCTION SER-1A July 2015 CITY OF NEW HOPE, MN COMPACTED BACKFILL GRANULAR BORROW MNDOT SPEC. 3149.2B.1 "DIA" DENOTES OUTSIDE DIAMETER OF PIPE DIA+12" MIN. 6" BELOW PIPE 12" DIA PIPE FOUNDATION & BEDDING GOOD SOILS IMPROVED PIPE FOUNDATION MATERIAL (3149.2H MOD.) CONSIDERED INCIDENTAL TO THE SPECIFIED GRANULAR BORROW MATERIAL (3149.2B.1) IN THIS AREA COMPACTED BACKFILL 12" ABOVE PIPE COARSE FILTER AGGR. MNDOT SPEC. 3149.2H MOD. DIA IMPROVED PIPE FOUNDATION 6" PAY DEPTH INCREMENTS TYP. "DIA" DENOTES OUTSIDE DIAMETER OF PIPEDIA+12" MIN. IMPROVED PIPE FOUNDATION MATERIAL POOR SOILS PLATE NO. LAST REVISION: BED-1 AUG 2017PIPE FOUNDATION & BEDDING METHODS FOR PVC CITY OF NEW HOPE, MN 6" INCIDENTAL ABOVE PIPE VARIES 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