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040824 EDA Meeting Packet    EDA MEETING  City Hall, 4401 Xylon Avenue North  Monday, April 8, 2024        President Kathi Hemken  Commissioner John Elder  Commissioner Andy Hoffe  Commissioner Michael Isenberg  Commissioner Jonathan London      1. Call to order – EDA Meeting of April 8, 2024    2. Roll call    3. Approval of Minutes:   March 25, 2024    4. Resolution approving purchase and redevelopment agreement for the sale of 7911  and 7901 50th Avenue North (improvement project no. 1060)    5. Resolution approving agreement with Center for Energy and Environment to  perform Home Energy Squad visits in the city through December 31, 2026     6. Adjournment    EDA Meeting   Page 1 March 25, 2024  City of New Hope  4401 Xylon Avenue North  New Hope, Minnesota 55428    EDA Minutes March 25, 2024  Regular Meeting City Hall      CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to  order at 8:14 p.m.    ROLL CALL Present:          Absent:  Kathi Hemken, President  John Elder, Commissioner (via WebEx)  Andy Hoffe, Commissioner  Michael Isenberg, Commissioner    Jonathan London, Commissioner     Staff Present:      Recce Bertholf, City Manager  Dan Boyum, City Engineer  Tim Hoyt, Director of Police  Rich Johnson, Director of HR/Admin. Services  Valerie Leone, City Clerk  Jeff Sargent, Director of Community Development  Bernie Weber, Director of Public Works  Stacy Woods, Assistant City Attorney    APPROVAL OF  MINUTES  Item 3    Motion was made by Commissioner Isenberg, seconded by Commissioner Elder,  to approve the minutes of January 22, 2024. All present voted in favor. Motion  carried.    7300 42nd AVENUE  NORTH  Item 4    President Hemken introduced for discussion EDA Item 4, Resolution approving  the release of declaration of restrictive covenants – 7300 42nd Avenue North.    Mr. Jeff Sargent, director of community development, explained in 1985 the city  established TIF District 85‐2 to focus on the redevelopment of properties near  Winnetka and 42nd avenues. He stated on June 27, 1996, Gill Brothers Funeral  Chapels entered into a Redevelopment Agreement with the EDA to construct the  funeral chapel which is currently located at 7300 42nd Avenue. Because the  property was in an active TIF district, the EDA required a declaration of restrictive  covenants on the property to ensure that the proper amount of taxes would be  generated. One of the covenants stated that the property could not be sold to a  non‐profit entity. He explained the TIF district expired in 2012 and although the  restrictive covenants are no longer warranted, they are not scheduled to expire  until June 1, 2026. The city receives approximately $8,000 per year in tax revenue.  The property at 7300 42nd Avenue North is now for sale.     Mr. Sargent explained that the Somali Community Resettlement Services (SCRS)  group has asked the city to release the restrictive covenants to allow them to  purchase the property at 7300 42nd Avenue North. He stated the SCRS provides  services to refugees and immigrants resettling into Minnesota.   EDA Meeting   Page 2 March 25, 2024    Mr. Sargent stated the Council considered the request at its work session of March  18, 2024, and directed staff to place the item on the EDA agenda.    Commissioner Isenberg pointed out the value provided by SCRS to the  community.     Mr. Abdullah Hared, executive director of Somali Community Resettlement  Services, was recognized. He stated the organization intends to change its name  to better reflect the population it serves. He stated over the last two years, in  addition to serving the Somali population, SCRS assists immigrants from Ukraine,  Afghanistan, and Latin America.     The EDA welcomed the organization to the city.    RESOLUTION 2024‐03  Item 4  Commissioner Isenberg introduced the following resolution and moved its  adoption “RESOLUTION APPROVING THE RELEASE OF DECLARATION  OF RESTRICTIVE COVENANTS – 7300 42ND AVENUE NORTH.” 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; and the following voted against the same: None;  Abstained: None; Absent: London; 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 Hoffe,  to adjourn the meeting. All present voted in favor. Motion carried. The New Hope  EDA adjourned at 8:24 p.m.    Respectfully submitted,    Valerie Leone, City Clerk    https://newhopemn.sharepoint.com/sites/Files/All User Access/RFA/COMM DEV/2024/EDA/04‐08‐24 7901 & 7911 50th Ave N/EDA4 Q ‐ 7901 & 7911 50th Ave N Lot Sale 04‐ 08‐24.docx    Request for Action  April 8, 2024    Approved by: Reece Bertholf, City Manager  Originating Department: Community Development  By: Jeff Alger, Community Development Specialist;   Jeff Sargent, Director   Agenda Title  Resolution approving purchase and redevelopment agreement for the sale of 7911 and 7901 50th Avenue North  (improvement project no. 1060)  Requested Action  Staff requests that the Economic Development Authority conduct a public hearing and approve a resolution  approving the sale of the scattered site lots located at 7901 and 7911 50th Avenue North.  Policy/Past Practice  The Economic Development Authority reviews proposals for the redevelopment of scattered site housing  properties prior to executing a contract with the preferred buyer/builder.   Background  The Economic Development Authority (EDA) acquired the property located at 4965 Winnetka Avenue North  for $230,000 in June of 2023, as part of the city’s scattered site housing program. Demolition work and utility  improvements were completed in the fall of 2023 and the property was split into two parcels in order to  accommodate the construction of two new homes. The new parcels were assigned addresses of 7901 50th  Avenue North (corner lot) and 7911 50th Avenue North (interior lot). A Request for Proposals (RFP) marketing  the lots was sent to more than 180 builders and interested parties on March 1, 2024. The non‐negotiable  minimum lot sale price was set at $75,000 per lot ($150,000 total) and builders were allowed the opportunity to  submit a higher offer in order to make their proposal more competitive. The RFP stipulated that the proposed  homes must be owner‐occupied, single‐family homes. The occupancy requirement applies to the first buyer for  a period of two years. The RFP stated, “A two‐story or rambler design is preferred for the west (interior) lot.  No preferred home style has been specified for the east (corner) lot.”    Proposals were due on March 22, 2024. The EDA received proposals from the following builders:   Boulder Contracting   Fortis Builders   Great Buy Homes   Noberg Homes   Novak‐Fleck   T Forceconsulting, LLC    Several strong proposals were submitted. The submittal from T Forceconsulting, LLC was deemed to be  incomplete and is not included with the comparison. The company did not provide a list of previously  constructed homes or evidence of equivalent experience that might be acceptable to the city. The proposal that  was submitted did not include documents/information detailed enough to be evaluated and considered. The  base characteristics and attributes of the eligible proposals are summarized as follows:     Agenda Section EDA Item Number  4    Request for Action, Page 2   Boulder Contracting Fortis Builders Great Buy Homes Noberg Homes Novak‐Fleck  Purchase Price $162,600 $161,000 $156,000 $161,500 $160,000  Projected   Sale Price  Interior: $489,000  Corner: $440,000  Total: $929,000  Interior: $490,000  Corner: $440,000  Total: $930,000  Interior: $475k‐$480k  Corner: $475k‐$480k  Total: $950k‐$960k  Interior: $499,485  Corner: $464,850  Total: $964,335  Interior: $430,023  Corner: $431,130  Total: $861,153  Design Interior: 2‐story  Corner: Rambler  Interior: 2‐story  Corner: Split‐level  Interior: Split‐level  Corner: Split‐level  Interior: Multi‐level split  Corner: Split‐level  Interior: Multi‐level split  Corner: Split‐level  Finished   Space  Interior: 1,846 SF  Corner: 1,297 SF  Total: 3,143 SF  Interior: 2,472 SF  Corner: 1,915 SF  Total: 4,387 SF  Interior: 2,547 SF  Corner: 2,547 SF  Total: 5,094 SF  Interior: 2,890 SF  Corner: 2,334 SF  Total: 5,224 SF  Interior: 2,143 SF  Corner: 2,147 SF  Total: 4,290 SF  Bedrooms Interior: 3  Corner: 3  Interior: 4  Corner: 4  Interior: 5  Corner: 5  Interior: 6  Corner: 6  Interior: 4  Corner: 5  Office/  Great Room  Interior: 1 (office)  Corner: 0  Interior: 1 (great room)  Corner: 0  Interior: 0  Corner: 0  Interior: 0  Corner: 0  Interior: 0  Corner: 0  Bathrooms Int: 3 (2 full; 1 ½)  Corner: 2 (2 full)  Int: 4 (1 full; 2 ¾; 1 ½)  Corner: 3 (1 full; 2 ¾)  Interior: 3 (2 full; 1 ¾)  Corner: 3 (2 full; 1 ¾)  Interior: 3 (3 full)  Corner: 3 (1 full; 2 ¾)  Interior: 3 (1 full; 2 ¾)  Corner: 3 (1 full; 2 ¾)  Garage 3‐stall 3‐stall 3‐stall with windows 3‐stall with windows 3‐stall  Façade Interior:   Front porch   Cultured stone  lower 1/3 of garage   2 pillars with  cultured stone base   Board & batten  siding   Front door with 1  sidelight        Corner:   Front stoop   Cultured stone on  lower 1/3 of garage  & area behind front  stoop   1 pillar with  cultured stone base   Shakes   Front door with 1  sidelight  Interior:   Front porch   Concrete patio   Cultured stone  lower 1/3 of garage   2 pillars   Board & batten  siding   Front door with  window        Corner:   Front stoop   Concrete patio   Cultured stone  lower 1/3 of 2‐stall  garage   1 pillar   Board & batten  siding   Front door with  window & 1  sidelight  Interior:   Front stoop   Cultured stone on entire  2‐stall garage, lower 1/3  of 1‐stall garage & 3/4 of  home   Stone address #’s built  into façade   1 pillar   Board & batten siding   Front door with  windows & sidelights    Corner:   Front stoop   Cultured stone on lower  1/3 of garage & 1/2 of  home   Stone address #’s built  into façade   1 pillar   Shakes & board & batten  siding   Front door with  windows & sidelights  Interior:   Front stoop   Cultured stone  lower 1/3 of garage   Stone address #’s  built into façade   1 pillar   Board & batten  siding & shutters   Front door with  window & 1  sidelight    Corner:   Cultured stone  lower 1/2 of garage   Stone address #’s  built into façade   Shakes   Front door with  window & 1  sidelight    Interior:   Front stoop   Cultured stone lower  1/3 of garage & home   Stone address #’s built  into façade   1 pillar with cultured  stone base   Shakes   Front door with 1  sidelight & transom  window    Corner:   Front stoop   Cultured stone lower  1/3 of garage   Stone address #’s built  into façade   1 pillar with cultured  stone base   Shakes   Front door with 1  sidelight  Other Interior:   Quartz/granite  countertops in  kitchen &  bathrooms   Double sink  bathroom vanity   LVP flooring   Main floor laundry    Corner:   Vaulted ceilings   Quartz/granite  countertops in  kitchen &  bathrooms   Double sink  bathroom vanity   LVP flooring  Interior:   Quartz/granite/  marble countertops  in kitchen &  bathrooms   Double sink  bathroom vanity   LVP flooring   2nd floor laundry    Corner:   Vaulted ceilings   Quartz/granite/  marble countertops  in kitchen &  bathrooms   Double sink  bathroom vanity   LVP flooring  Interior:   Vaulted ceilings   Quartz/granite  countertops in kitchen   Double sink bathroom  vanity   LVP flooring        Corner:   Vaulted ceilings   Quartz/granite  countertops in kitchen   Double sink bathroom  vanity   LVP flooring   Trees along Winnetka  Ave N  Interior:   Vaulted ceilings   Quartz/marble  countertops in  kitchen &  bathrooms   Double sink  bathroom vanity   LVP flooring    Corner:   Vaulted ceilings   Quartz/marble  countertops in  kitchen &  bathrooms   LVP flooring  Interior:   Vaulted ceilings   Quartz/granite/marble  countertops in kitchen  & bathrooms   LVP flooring          Corner:   Vaulted ceilings   Quartz/granite/marble  countertops in kitchen  & bathrooms   LVP flooring    Upgrades 31 of 44 checked 25 of 44 checked 26 of 44 checked 23 of 44 checked 23 of 44 checked    Request for Action, Page 3  Of the five eligible proposals, two included two‐story designs for the interior lot, one of the preferred styles of  home for the lot specified within the RFP. Boulder Contracting proposed a two‐story design without a finished  basement with 1,846 square feet of finished space, three bedrooms, three bathrooms, and an office. Fortis  Builders proposed a two‐story design with a finished basement with 2,472 square feet of finished space,  including a great room, four bedrooms, and four bathrooms. Both are projected to sell for about $490,000. For  the corner lot, Boulder Contracting proposed a rambler design without a finished basement with 1,297 square  feet of finished space, three bedrooms, and two bathrooms. Fortis Builders proposed a split‐level design with  a finished lower level with 1,915 square feet of finished space, four bedrooms, and three bathrooms. Both are  projected to sell for about $440,000. Boulder Contracting offered $162,600 for the lots and Fortis Builders offered  $161,000 for the lots. In comparing the two proposals that included a preferred style of home for the interior  lot, the proposal from Fortis Builders is recommended for approval. Staff toured a home that was recently  completed by Fortis Homes further supporting the recommendation.    Noberg Homes is proposing a multi‐level split design for the interior lot and a split‐level design for the corner  lot. Noberg Homes did not submit site plans for the lots, however, based on the floor plans that were submitted,  it appears both proposed homes can meet setback requirements if configurated appropriately. Although the  proposal from Noberg Homes does not include a two‐story design, it has the most finished square footage,  total number of bedrooms, and highest combined projected sale price of any proposal. If the EDA would prefer  the additional square footage included with the proposal from Noberg Homes, staff would support approval  of their proposal. Staff toured two homes currently under construction by Noberg Homes and has no concerns  about their quality of work.    While staff is not recommending the proposals submitted by Great Buy Homes or Novak Fleck, it should be  noted that Great Buy Homes made significant upgrades to the front of their homes by adding cultured stone  and increasing the size of the pillars. Novak‐Fleck proposed two nice homes, but the total finished square  footage and projected sale prices were lower than other proposals.    Experience with Recommended Builder  The EDA has not sold any scattered site lots to Fortis Builders in the past. Fortis Builders is a local builder based  in Loretto that has constructed single‐family homes in Buffalo, Delano, Elk River, and Winsted and townhomes  in Otsego in recent years. Noberg Homes is a local builder out of Anoka that has significant experience  constructing and selling new homes in established neighborhoods in the area, having built many single‐family  homes in Brooklyn Center, Brooklyn Park, Crystal, and Robbinsdale in recent years.    Cost & Tax Impact of Improvements  It is anticipated that expenses associated with the project would be approximately $324,080. Revenue from the  sale of the lots would be $161,000 (Fortis Builders) or $161,500 (Noberg Homes), resulting in an estimated net  loss of $163,080 (Fortis Builders) or $162,580 (Noberg Homes). The property that was previously one parcel  would become two taxable properties with single‐family homes. If the combined value of the two new  properties was $930,000 (Fortis Builders) or $964,335 (Noberg Homes) in 2025, it is estimated that total taxes  paid to the city in 2026 would increase by $3,845 (Fortis Builders) or $4,051 (Noberg Homes) as compared to  those that were 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.    Request for Action, Page 4   Old Home New Homes     Taxable Market Value 2023,  Payable 2024  Projected Taxable Market  Value 2025, Payable 2026  Change Percent  Change  Fortis Builders $289,100 $930,000 $640,900 222%  Noberg Homes $289,100 $964,335 $675,235 234%            Estimated Taxes Allocated  to City 2023, Payable 2024  Projected Taxes Allocated  to City 2025, Payable 2026  Change Percent   Change  Fortis Builders $1,734.60 $5,580.00 $3,845.40 222%  Noberg Homes $1,734.60 $5,786.01 $4,051.41 234%    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  Fortis Builders 1 (payable 2026) $3,845.40 $(159,234.60) ‐97.64%  Noberg Homes 1 (payable 2026) $4,051.41 $(158,528.59) ‐97.51%  Fortis Builders 30 (payable 2055) $182,946.50 $19,866.50 12.18%  Noberg Homes 30 (payable 2055) $192,747.51 $30,167.51 18.56%  *Please refer to the attached documents for details on the estimated tax impact of improvements and ROI calculation    The estimated ROI for the project over 30 years is 12.18% (Fortis Builders) or 18.56% (Noberg Homes) and the  estimated Internal Rate of Return (IRR) for the project over 30 years is 0.66% (Fortis Builders) or 0.99% (Noberg  Homes). The calculations, which are attached, 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  The city attorney has drafted a resolution and Purchase and Redevelopment Agreement for the sale of the lots.  The agreements will ensure that the provisions set forth in the RFP will be met and set the combined purchase  price of the lots at $161,000 (Fortis Builders) or $161,500 (Noberg Homes). The RFP stipulates that closing must  occur within 60 days of approval of the sale. The Purchase and Redevelopment Agreement stipulates that the  homes must be completed within a year of the closing date.  Funding  Funding for this project came from the 2023 EDA budget. The city budgeted $500,000 for scattered site projects  in 2023. The estimated net cost for 7901 and 7911 50th Avenue North shown below include the proposal with  slightly higher costs (Fortis Homes).    Request for Action, Page 5    Project Estimated Net Cost  5802 Boone Ave N $126,964.00  7901 & 7911 50th Ave N $163,080.00  Total $290,044.00     Annual Budget (2023) $500,000.00  Under/Over Budget +$209,956.00    As a result of the property owner electing not to move, the city did not spend the $163,620 it had committed to  a scattered site project at 5243 Oregon Avenue North in 2023. Those funds can be used for other future projects.  Recommendation  Staff recommends that the EDA conduct a public hearing and approve a resolution approving the sale of the  scattered site lots located at 7901 and 7911 50th Avenue North to Fortis Builders. If the EDA would prefer the  additional square footage included with the proposal from Noberg Homes, staff would support approval of  their proposal.  Attachments   Resolution   Purchase and Redevelopment Agreement   Proposals   Budget (Fortis Homes and Noberg Homes)   Estimated Tax Impact of Improvements (Fortis Homes and Noberg Homes)   Estimated Return on Investment (Fortis Homes and Noberg Homes)   Estimated Internal Rate of Return (Fortis Homes and Noberg Homes)   Tax Calculator (Fortis Homes and Noberg Homes)   Comparison of Costs & Tax Impact of Recent Projects    CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 24-___ RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT AGREEMENT WITH _______________________ FOR THE SALE OF 7911 and 7901 50th AVENUE NORTH (IMPROVEMENT PROJECT NO. 1060) 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 legally described as follows: Lot 24, Block 1, except the Easterly 7 feet thereof, Mork-Campion Manor, Hennepin County, Minnesota, and That part of Lot 25, Block 1, Mork-Campion Manor lying West of the East 7 feet thereof, Hennepin County, Minnesota, which was recently split into the following two separate tax parcels pursuant to an administrative lot split with Hennepin County: The West 80 feet of Lot 24, Block 1, Mork-Campion Manor, Hennepin County, Minnesota. (Abstract Property) and The West 80 feet of Lot 25, Block 1, Mork-Campion Manor, Hennepin County, Minnesota. (Torrens Property) (Property address: 7911 50th Ave. N., New Hope, MN; PID: 07-118-21-14-0140) Lot 24, Block 1, except the West 80 feet thereof and except the Easterly 7 feet thereof, Mork-Campion Manor, Hennepin County, Minnesota; (Abstract Property) and That part of Lot 25, Block 1, Mork-Campion Manor lying West of the East 7 feet thereof and lying East of the West 80 feet thereof, Hennepin County, Minnesota. (Torrens Property) (Property Address: 7901 50th Ave. N., New Hope, MN; PID: 07-118-21-14-0141) (Both parcels shall be referred to herein as the “Property”) as evidenced by the warranty deed recorded with the Hennepin County Registrar of Title’s Office on June 14, 2023, as Document No. 6018367 and with the Hennepin County Recorder’s Office on June 20, 2023, as Document No. 11208930; and WHEREAS, since the purchase by the EDA, the former house has been demolished and the Property has been divided into 2 separate lots in preparation for the sale to a builder to construct two new single family homes; and WHEREAS, in response to a Request for Proposal (“RFP”) sent by New Hope City staff to multiple builders, the EDA received an offer from _____________________., a Minnesota __________________ (“Buyer”) regarding the sale and redevelopment of the Property; and WHEREAS, the EDA desires to enter into an agreement with ______________ to sell the Property for the total purchase price of $____________ for the construction of 2 single family homes according to the plans submitted by Buyer and upon all of the terms set forth in the RFP; and WHEREAS, the total purchase price of $____________ may be split between the following two parcels, if Buyer or Buyer’s lender requires the purchase price be divided: 7911 50th Ave. N. – PID 07-118-21-14-0140 7901 50th Ave. N. – PID 07-118-21-14-0141 WHEREAS, the EDA has accepted Buyer’s offer and will present a draft Purchase and Redevelopment Agreement for the Property to Buyer for their 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 Buyer for the total sum of $_______________ in order for Buyer to redevelop and build two new single family homes in accordance with the City’s scattered site housing program and policy; and WHEREAS, the City staff is hereby seeking approval from the EDA of the Purchase and Redevelopment 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 Buyer for the total purchase price of $_______________, for the construction of 2 single family homes with other terms and conditions as set forth in the Purchase and Redevelopment Agreements attached hereto as Exhibit A, are approved subject to the review and approval by the City Attorney of the final language and exhibits to the Purchase and Redevelopment Agreements relating to the closing on the sale of the Property. 3. The City Attorney is authorized to revise the Purchase and Redevelopment Agreement as necessary, and to divide the sale between two (2) separate Purchase and Redevelopment Agreements so long as the entire purchase price totals $________________. 4. The EDA shall use due diligence for selling the Property to Buyer for the construction of 2 single family homes with the design submitted by Buyer, so as to return the Property to the tax rolls for the benefit of all taxing jurisdictions. 5. 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 8th day of April, 2024. ____________________________________ Kathi Hemken, President Attest: _____________________________ Reece Bertholf, Executive Director Exhibit A Purchase and Redevelopment Agreement See attached. P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11452 4965 Winnetka Ave N\Resolution Approving Sale.docx 1 PURCHASE AND REDEVELOPMENT AGREEMENT This Purchase and Redevelopment Agreement ("Agreement") is made by and between _____________________________, a Minnesota ________________ (“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 April ___, 2024. In consideration of the covenants and agreements of the respective parties as hereinafter set forth, Seller shall sell and Buyer shall purchase the two (2) vacant parcels of real property located in the City of New Hope at the property addresses of 7911 50th Avenue North, New Hope, MN 55428, PID 07-118-21-14-0140 and 7901 50th Avenue North, New Hope, MN 55428, PID 07-118-21-14-0141 (these 2 parcels were previously one single parcel identified by street address of 4965 Winneta Avenue North, New Hope, MN but have been divided into 2 parcels) and legally described on the attached Exhibit A (both parcels shall be referred to herein as the “Property”). 1. Purchase Price. The purchase price for the Property is One Hundred ______________________and 00/100 Dollars ($__________.00) (the “Purchase Price”), which Buyer shall pay as follows: an initial payment of Four Thousand and 00/100 Dollars ($4,000.00) (the “Earnest Money”), which sum shall be paid to Seller upon Buyer and Seller’s execution of this Agreement and One Hundred ______________________ and 00/100 Dollars ($_________.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. 2 d. Seller represents that it has the requisite power and authority to enter into and perform this Agreement and any Seller’s Closing Documents signed by it. e. Seller is not a “foreign person,” “foreign partnership,” “foreign trust” or “foreign estate” as those terms are defined in Section 1445 of the Internal Revenue Code. f. To the best of Seller’s knowledge without inquiry, no above ground or underground tanks are located in or about the Property. g. Seller makes no other warranties as to the condition of the Property. Seller agrees that any breach of Seller’s foregoing representations shall be grounds for Buyer to terminate this Agreement. In the event of such termination, the Earnest Money shall be returned. Wherever herein a representation is made “to the best of Seller’s knowledge,” such representation is limited to the actual knowledge of the President and/or Executive Director of Seller. 4. Representations of Buyer. As an essential part of this Agreement and in order to induce Seller to enter into this Agreement and sell the Property, Buyer hereby represents to Seller: a. SUBJECT TO THE FOREGOING REPRESENTATIONS BY SELLER, BUYER HEREBY ACKNOWLEDGES THAT BUYER IS PURCHASING THE PROPERTY IN “AS IS” CONDITION AS TO THE USE OF THE PROPERTY. Buyer understands and agrees that the Purchase Price is the fair market value of the Property in its “AS IS” condition. Buyer acknowledges that they have inspected or have had the opportunity to inspect the Property and agree to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for the purpose of determining if the soil is suitable for construction of the homes described in paragraph 10 below. If the soil is determined to be unacceptable Buyer may rescind this Agreement by written notice to Seller, in which case the Agreement shall be null and void and all earnest money paid hereunder shall be refunded to Buyer. b. Buyer agrees the first sale of the respective homes 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 homes constructed on the Property are purchased by owner-occupants, Buyer will record restrictive covenants and an assessment agreement against the Property prohibiting the leasing of the homes for a period of two (2) years after the sale of each 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 lot(s) prior to the sale if the lot(s) is not being sold to an owner-occupant. The EDA shall release the Property from 3 these restrictive covenants and assessment agreements upon the issuance of a certificate of occupancy for the construction of both of the homes 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 respective homes as their primary residences in compliance with the restrictive covenants described herein in the form attached as Exhibit C. c. Buyer will be constructing two (2) separate single family homes on the Property. Within one (1) year of Closing, Buyer shall complete the construction of both of the single family homes 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 4 (ii) elect to have this Agreement remain in effect, in which event Buyer will be deemed to have approved the previously-cited exception and the same shall be considered part of the Permitted Encumbrances. 6. Closing. a. Closing shall occur on or before June 7, 2024 (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. 5 9. Construction of Homes. Buyer agrees that it will construct two (2) new single family homes on the Property. This covenant shall survive the delivery of the Deed. a. The single family homes described in this paragraph are referred to as the "Minimum Improvements.” b. The Minimum Improvements shall consist of two new single family homes, and shall be constructed substantially in accordance with the RFP Guidelines attached as Exhibit E and the proposal approved by Seller on April 8, 2024, 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 certificates of occupancy have 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 6 (collectively, a “Transfer”), without the prior written approval of Seller. The term "Transfer" does not include encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable Buyer or any successor in interest to the Property, or any part thereof, to construct the Minimum Improvements or component thereof. (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. 7 (3) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subparagraph shall be in a form reasonably satisfactory to Seller. (iii) If the conditions described above are satisfied then the Transfer will be approved and Buyer shall be released from its obligation under this Agreement, as to the portion of the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (iii) apply to all subsequent transferors. (iv) Upon issuance of the Certificate of Completion, Buyer may transfer or assign the Minimum Improvements and/or Buyer's rights and obligations under this Agreement with respect to such Property without the prior written consent of Seller. f. Buyer agrees that (a) it will use the Minimum Improvements as only a single family, owner-occupied 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 8 to and in the Property, shall revert to Seller, but only if the events stated in this paragraph have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this paragraph, Seller shall have no right to reenter or retake title to and possession of a portion of the Property for which a Certificate of Completion has been issued. 11. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in Seller of title to and/or possession of the Property or any part thereof as provided in paragraph 10, Seller shall apply the Purchase Price paid by Buyer under paragraph 1 of this Agreement as follows: a. First, to reimburse Seller for all costs and expenses incurred by Seller, including but not limited to proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by Seller from the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of ownership thereof by Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by Seller assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof; and any amounts otherwise owing Seller by the Buyer and its successor or transferee; and b. Second, to reimburse Buyer for the balance of the Purchase Price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to Buyer upon delivery of executed, recordable warranty deed to the Property by Buyer to Seller. 12. Notices. All notices required hereunder shall be in writing and shall be deemed to have been duly given and received (a) two (2) business days after depositing of the same in the mail if sent by regular, registered or certified mail, postage prepaid, to the party to whom directed, at such party's address herein set forth; or (b) upon delivery, or attempted delivery if delivered by overnight courier service or hand delivery. Any party shall have the right to designate any other address for notice purposes by written notice to the other party in the manner aforesaid. The addresses of the parties are as follows: 9 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 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: __________________________________ __________________________________ __________________________________ _________________________________ 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 10 counterpart, with each copy of the Agreement binding upon the signing party at the time of signing and together which shall constitute a single document. 17. Survival. The Parties representations contained herein shall survive the delivery of the Deed. IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the above date (“Effective Date”). SELLER: Economic Development Authority in and for the City of New Hope By: _______________________________ Kathi Hemken Its: President Dated: April ____, 2024 By: _______________________________ Reece Bertholf Its: Executive Director Dated: April ____, 2024 BUYER: _________________________________ By: ________________________________ __________________________ Its: ______________________ Dated: April ____, 2024 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of April, 2024, 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 HENNEPIN ) The foregoing instrument was acknowledged before me this ___ day of April, 2024, by ____________________, the __________________ of ___________________________, a Minnesota ______________, on behalf of said ___________________. _______________________________ Notary Public DRAFTED BY: Jensen Sondrall Persellin & Woods, P.A. 8525 Edinbrook Crossing, #201 Brooklyn Park, MN 55443 (763) 424-8811 12 Exhibit A Legal Description The West 80 feet of Lot 24, Block 1, Mork-Campion Manor, Hennepin County, Minnesota. (Abstract Property) and The West 80 feet of Lot 25, Block 1, Mork-Campion Manor, Hennepin County, Minnesota. (Torrens Property) (Property address: 7911 50th Ave. N., New Hope, MN; PID: 07-118-21-14-0140) Lot 24, Block 1, except the West 80 feet thereof and except the Easterly 7 feet thereof, Mork-Campion Manor, Hennepin County, Minnesota; (Abstract Property) and That part of Lot 25, Block 1, Mork-Campion Manor lying West of the East 7 feet thereof and lying East of the West 80 feet thereof, Hennepin County, Minnesota. (Torrens Property) (Property Address: 7901 50th Ave. N., New Hope, MN; PID: 07-118-21-14-0141) (Both parcels shall be referred to herein as the “Property”) 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 June, 2024, by and between the City of New Hope, a Minnesota municipal corporation (“City”) and _______________________ a Minnesota ________________ (“Buyer”). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between the City and Buyer dated effective April ___ , 2024 (“Purchase Agreement”), Buyer purchased the real property located at 7911 and 7901 50th 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 June ____, 2024; and WHEREAS, Buyer has committed to constructing two (2) new residential homes on the two separate lots which are identified herein as the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and Buyer have agreed Buyer shall complete the construction of the homes 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 Buyer have agreed the City may levy a $20,000.00 assessment against the Property prior to Buyer’s sale of the Property with the completed homes if both of the homes are not being sold to owner-occupants. 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 Buyer. 2 NOW THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, Buyer agrees as follows: AGREEMENT 1. Restrictive Covenants Buyer hereby covenants and agrees with the City that the Property is restricted by the following covenants: a) The initial conveyance of the respective residential dwellings (“Dwellings”) constructed upon the Property will be only to “Owner-occupant(s)”. “Owner- occupant” is defined as an individual that purchases the Property from Buyer with a bona fide intent to reside in the Dwelling as a primary residence; and b) The Dwellings constructed on the Property shall be occupied only by the Owner- occupants, 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 Buyer 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 Buyer acknowledges and agrees the City may levy a $20,000.00 assessment against the Property if: (a) the Property is not improved with two (2) single family houses on or before April 8, 2025; and/or (b) if Buyer sells the Property with the completed homes to a non-owner-occupant in violation of paragraph 1(a) above. Further, Buyer 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 Buyer Buyer expressly waives objection to any irregularity with regard to any assessment levied against the Property per this Agreement or any claim that the amount 3 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 Buyer 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. Buyer’s Successors This Agreement shall not be terminated by: a) Voluntary dissolution of Buyer or any parent, subsidiary or successor of Buyer; b) Merger whereby Buyer (or such parent, subsidiary or successor of Buyer) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of Buyer. 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 thoyt@newhopemn.gov 4 If to Buyer: _____________________ ___________________ ___________________ ___________________ 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 Buyer 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: June ___, 2024 __________________________ By: _______________________________ ______________________ Its: ___________________ Dated: June ___, 2024 STATE OF MINNESOTA COUNTY OF HENNEPIN }ss. The foregoing instrument was acknowledged before me this ____ day of June, 2024, 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 HENNEPIN The foregoing instrument was acknowledged before me this ____ day of June, 2024, by __________________, the _____________________ of _____________________, a Minnesota ________________, on behalf of said ______________. (Notary Public Seal) ______________________________________ Notary Public Drafted By: JENSEN SONDRALL PERSELLIN & WOODS, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763) 424-8811 6 Exhibit A Legal Description The West 80 feet of Lot 24, Block 1, Mork-Campion Manor, Hennepin County, Minnesota. (Abstract Property) and The West 80 feet of Lot 25, Block 1, Mork-Campion Manor, Hennepin County, Minnesota. (Torrens Property) (Property address: 7911 50th Ave. N., New Hope, MN; PID: 07-118-21-14-0140) Lot 24, Block 1, except the West 80 feet thereof and except the Easterly 7 feet thereof, Mork- Campion Manor, Hennepin County, Minnesota; (Abstract Property) and That part of Lot 25, Block 1, Mork-Campion Manor lying West of the East 7 feet thereof and lying East of the West 80 feet thereof, Hennepin County, Minnesota. (Torrens Property) (Property Address: 7901 50th Ave. N., New Hope, MN; PID: 07-118-21-14-0141) (Both parcels shall be referred to herein as the “Property”) P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11452 4965 Winnetka Ave N\Restrictive Covenant.docx 15 Exhibit D Assessment Agreement 1 ASSESSMENT AGREEMENT THIS ASSESSMENT AGREEMENT (“Agreement”) dated effective as of the ____ day of ____________, 2024, by and between the City of New Hope, a Minnesota municipal corporation (“City”) and _________________________, a Minnesota _______________ (“Buyer”). RECITALS WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between City and Buyer dated effective April ___, 2024 (“Purchase Agreement”) Buyer purchased the real property located at 7911 and 7901 50th 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 June ____, 2024; and WHEREAS, Buyer has committed to constructing two new residential homes on the two separate lots which are identified herein as the Property pursuant to the terms of the Purchase Agreement; and WHEREAS, the City and Buyer have agreed Buyer shall complete the construction of the two homes 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 Buyer have further agreed the City may levy a $20,000.00 assessment against the Property prior to Buyer’s sale of the Property with the completed homes if both of the parcels of Property are not being sold to owner-occupants 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 Buyer hereby covenants and agrees with the City that the new homes on the Property shall be fully completed on or before April 8, 2025. Fully completed shall mean the Property shall be improved with two new single-family houses. 2 2. Agreement to Assessment Buyer acknowledges and agrees the City may levy a $20,000.00 assessment against the Property if: (a) the Property is not improved with a two single-family houses on or before April 8, 2025; (b) if Buyer sells the Property with the completed homes to non-owner-occupants; and/or (c) if the Property is leased to non- owner-occupants in the first two (2) years after initial conveyance. Further, Buyer 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 Buyer Buyer 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. Buyer’s Successors This Agreement shall not be terminated by: a) The voluntary dissolution of Buyer or any parent, subsidiary or successor of Buyer; b) Merger whereby Buyer (or such parent, subsidiary or successor of Buyer) is not the surviving or resulting entity; or c) Any transfer of all or substantially all of the assets of Buyer. 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 Buyer: _____________________ _____________________ _____________________ _____________________ 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 Buyer 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: June ____, 2024 ____________________________ By: _______________________________ ______________________ Its: __________________ Dated: June ____, 2024 STATE OF MINNESOTA COUNTY OF HENNEPIN }ss. The foregoing instrument was acknowledged before me this ____ day of June, 2024, 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 HENNEPIN The foregoing instrument was acknowledged before me this ____ day of June, 2024, by ___________________, the ________________ of ____________________, a Minnesota __________________, on behalf of said ___________________. (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\99-11452 4965 Winnetka Ave N\Assessment Agreement.docx 5 Exhibit A Legal Description The West 80 feet of Lot 24, Block 1, Mork-Campion Manor, Hennepin County, Minnesota. (Abstract Property) and The West 80 feet of Lot 25, Block 1, Mork-Campion Manor, Hennepin County, Minnesota. (Torrens Property) (Property address: 7911 50th Ave. N., New Hope, MN; PID: 07-118-21-14-0140) Lot 24, Block 1, except the West 80 feet thereof and except the Easterly 7 feet thereof, Mork- Campion Manor, Hennepin County, Minnesota; (Abstract Property) and That part of Lot 25, Block 1, Mork-Campion Manor lying West of the East 7 feet thereof and lying East of the West 80 feet thereof, Hennepin County, Minnesota. (Torrens Property) (Property Address: 7901 50th Ave. N., New Hope, MN; PID: 07-118-21-14-0141) (Both parcels shall be referred to herein as the “Property”) 16 Exhibit E Request for Proposal (“RFP”) Guidelines See attached. City of New Hope, Minnesota Request For Proposals (RFP) – 7901 & 7911 50th Avenue North Date: March 1, 2024 From: The Economic Development Authority (EDA) in and for the city of New Hope Subject: Request for proposals for construction of two new single-family homes at 7901 and 7911 50th Avenue North (previously 4965 Winnetka Avenue North) Overview: The city of New Hope EDA owns the adjacent properties located at 7901 and 7911 50th Avenue North, New Hope, MN 55428 (PIDs 07-118-21-14-0140 and 07-118-21-14-0141). The EDA is requesting proposals from builders to purchase the two vacant lots for the construction of two new single-family homes. The lots are being offered as part of the city’s scattered site housing program, which focuses on the removal or rehabilitation of distressed properties. The site was previously occupied by a home that was razed by the EDA. The lot was then split into two parcels. Enclosed, please find the proposal form and specifications for submitting a proposal. Minimum Lot Price: The lots are being offered at a minimum base price of $75,000 each ($150,000 total). The EDA will consider higher offers for the lots; however, submitting a higher offer does not guarantee selection of a proposal. Submission: Interested builders must submit enclosed Bid Form by U.S. Mail, e-mail, or in person. All documents submitted will be made available to the public and presented at an EDA meeting. Bids shall be submitted to Jeff Alger, Community Development Specialist. City of New Hope Community Development Department Attention: Jeff Alger 4401 Xylon Avenue North New Hope, MN 55428 jalger@newhopemn.gov Deadline: Proposals must be submitted using the enclosed form and received no later than Friday, March 22, 2024, 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 April 8, 2024, meeting. Construction of the new homes must be completed in full no later than one (1) year after the closing on the purchase of the lots. City of New Hope, Minnesota Proposal Form Property Owner: City of New Hope Economic Development Authority (EDA) Property Address: 7901 & 7911 50th Avenue North, New Hope, MN 55428 Property Identification Numbers: 07-118-21-14-0140 & 07-118-21-14-0141 Minimum Lot Price: These lots are being offered at a minimum base price of $75,000 each ($150,000 total). The EDA will consider higher offers for the lots; however, submitting a higher offer does not guarantee selection of a proposal. This proposal is not a purchase agreement or other binding contract. At this time, the builder is submitting a proposal to purchase the two lots for $ ___________________ ($150,000 minimum) and build two new single-family homes in accordance with the RFP guidelines. If a builder’s proposal is accepted by the EDA, the builder will be asked to enter into a purchase and redevelopment agreement and provide $4,000 in earnest money for the lots within one week of approval. 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 homes may be built speculatively or for specific buyers. 3. The city is interested in proposals that will generate the highest valued, owner occupied, single- family homes. Owner occupancy restrictions will be documented in the purchase and redevelopment agreement and secured with a restrictive covenant recorded 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 west (interior) lot. No preferred home style has been specified for the east (corner) lot. 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. On July 24, 2023, an Examiner’s Directive removed the Declaration of Protective Covenants recorded on August 12, 1959, as Document No. T601863 with the Hennepin County Registrar of Title’s Office, which previously restricted the type of home that could be constructed on the property. 5. After proposals have been received, city staff will review and recommend a preferred builder/design at the next regularly scheduled EDA meeting. Within one (1) week of approval by the EDA, the selected builder will enter into a purchase and redevelopment agreement that will address the sale of the lot and secure all applicable development and performance standards outlined in the proposal guidelines. At the time of this agreement, the builder will be required to submit a $4,000 nonrefundable earnest money deposit. Closing on the purchase of the lots must take place within 60 days of final EDA approval. The buyer will be responsible for paying the following costs associated with the purchase: • Preparation and issuance of the title commitment. • The 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. Proposals must include homes on both lots. Construction of the new homes must be completed within one (1) year of closing on the purchase of the lots. City of New Hope, Minnesota Specifications 1. Utilities a. All utility service lines shall be underground. Utilities may install necessary facilities such as pedestals or boxes within the right-of-way or utility easements. b. The builder shall be responsible for any expenses associated with connecting the homes to private utilities, including one Sewer Availability Charge (SAC) fee for the west (interior) lot. c. Xcel Energy intends to supply power to the lots by installing a new transformer on the existing utility pole at the northeast corner of the east lot and running a secondary wire to the existing utility pole at the northwest corner of the west lot as show in the attached diagram. d. Municipal water connections are available for the west lot from the north (50th Avenue North) and for the east lot from the east (Winnetka Avenue North) as shown on the Proposed Utility Services figure and marked onsite. The EDA coordinated replacing the existing curb stop box (east lot) and installation of a new, second curb stop box (west lot) in conjunction with demolition work. Builder shall be responsible for purchasing water meter and supplying horn. Water meter horn specifications available upon request. e. Municipal sanitary sewer connections are available for the west lot from the north (50th Avenue North) and for the east lot from the east (Winnetka Avenue North) as shown on the Proposed Utility Services figure and marked onsite. The EDA coordinated lining of the existing service (east lot) from the termination point all the way to the main line and installation of a new, second connection in conjunction with demolition work. f. There is a four (4) inch black perforated flex drain tile pipe directly behind (south of) the curb along 50th Avenue North. It is buried approximately two (2) feet deep and connects to a catch basin. Sump pumps for both homes shall tie into existing drain tile. The locations of the sump pump stubs are shown on the Proposed Utility Services figure and marked onsite. The city’s detail plate for sump connections to a drain tile is included as an attachment. Caution should be exercised digging and working in these areas. Builder shall be solely responsible for any damage that occurs to the drain tile pipe and system. City of New Hope, Minnesota Specifications (continued) 2. Building Standards & Design Guidelines a. All site improvements shall comply with the New Hope City Code. b. The front of both homes and garages shall face north, 50th Avenue North. c. Each of the homes 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 designs should emphasize the front doors as the focal points for the front of the homes. A large and usable front porch is desired. Garage door dominance in the designs should be minimized. Front doors and garage doors with windows are preferred. e. If above-grade patio doors are included, it is preferred that decks are included. 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 easements. 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. i. Driveways for the new homes must be completely new and fully paved from the street to the garages. If the garage for the east lot abuts Winnetka Avenue North, the curb cut/driveway access must be set back at least 40’ from intersection of property lines at NE corner of lot. Interior driveways are not allowed within three (3) feet of any property line. Driveways may not be placed above sewer lines or curb stop boxes. The maximum driveway/curb cut width at the property line is 24 feet for a two-car garage and 28 feet for a three-car garage. The existing curb cut along Winnetka Avenue North shall be replaced with new curbing and the driveway apron shall be removed. Builder is responsible for obtaining permit from Hennepin County and repairing any damage to sidewalk. 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. City of New Hope, Minnesota Specifications (continued) 3. Setbacks Front Yard (north) Rear Yard (south) Interior Side Yard Attached Garage Interior Side Yard Home Corner Side Yard Home Corner Side Yard Garage East lot (7901) 25’ 25’ 5’ 10’ 25’ 30’* West lot (7911) 25’ 25’ 5’ 10’ N/A N/A *Curb cut/driveway access must be set back at least 40’ from NE corner of lot lines 4. 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 trees shall be planted on each lot. Trees must be a minimum of two (2) inches in diameter. A list of prohibited trees is attached. c. Foundation plantings with landscaping rock or wood chips and edging around the foundations of the homes are preferred. 5. Builder Selection Criteria a. Builder must be licensed as a Residential Building Contractor in Minnesota. b. Builder shall provide the addresses of three (3) 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 both homes within one (1) year of closing on the purchase of the lots. City of New Hope, Minnesota Specifications (continued) 6. Required Attachments & Information From Builder • Upgrade checklist (attached). • Site plan showing the layout of the homes on the lots. Include dimensions and setbacks (completed survey is attached). • Floor plans with dimensions. Clearly indicate square footages of each floor. • List overall square footage. • List total finished square footage. • Elevations specifying types of exterior materials (color elevations preferred). • Description of the interior trim package, including flooring. • Anticipated sale price of the homes. • Pictures of similar homes (if available). Attachments • Recent home sales • Previous scattered site projects • Upgrade checklist • Survey • Photo • Backfill compacting testing results • Xcel power services figure • Utility services figure • Well sealing certificates • Sump connection to drain tile 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 January 1, 2022. Address Price Date Finished SF Beds Baths Year Built 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 4317 Flag Ave N $565,000 2/2024 3,525 6 4 1978 5306 Rhode Island Ave N $550,000 9/2023 2,259 4 3 2022 7328 51st Ave N $531,217 1/2022 2,434 3 3 2021 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 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 4637 Aquila Ave N $460,000 7/2022 2,537 5 3 2022 4301 Flag Ave N $465,000 3/2022 2,832 5 3 1978 3940 Ensign Ave N $452,500 9/2022 2,359 4 2 1966 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 Beds Baths Builder 5213 Pennsylvania Ave N $575,000 8/2022 3,102 5 4 Donnay Homes 5306 Rhode Island Ave N $550,000 9/2023 2,259 4 3 Fieldstone Family Homes 5431 Virginia Ave N $476,000 $245,000 6/2022 11/2015 2,432 4 3 Novak-Fleck 4637 Aquila Ave N $460,000 7/2022 2,537 5 3 Great Buy Homes 7215 62nd Ave N $435,000 $350,821 10/2022 6/2019 2,284 4 3 Great Buy Homes 4215 Louisiana Ave N $430,650 7/2021 2,537 5 3 Great Buy Homes 5355 Oregon Ave N $430,000 $389,921 11/2022 11/2020 2,327 5 3 Great Buy Homes 3856 Maryland Ave N $413,921 10/2019 3,102 5 4 Donnay Homes 4417 Nevada Ave N $410,000 $363,869 11/2020 5/2017 2,329 4 3 Regal Homes 5201 Oregon Ave N $408,320 4/2020 2,805 4 4 Novak-Fleck 5353 Oregon Ave N $385,750 3/2021 2,648 5 3 Great Buy Homes 7311 62nd Ave N $359,900 $319,900 10/2021 5/2019 2,000 4 2 Houston Homes 6027 West Broadway $350,000 10/2020 2,275 4 3 Novak-Fleck 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) City of New Hope, Minnesota Upgrade Checklist (continued) 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 ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ SGS 89°04'41" E 176.71S 89°04'41" E 173.73S 00°24'03" E 125.0080.0093.73551010105510PARCEL A PARCEL B80.0096.71S 00°57'36" W 124.97S 00°57'58" W 124.97PROPOSED DRAINAGE & UTILITY EASEMENTSF:\survey\mork-campion manor -hennepin\24-25-1\01 Surveying -90577\01 CAD\01 Source\01 Survey Base.dwg1 OF 1SHEET NO.PROJECT: 90577ADMINISTRATIVELOT DIVISIONCITY OF NEW HOPE4401 Xylon Ave. N.New Hope, MN 55428GRP Signed: ____________________________________________ Gregory R. Prasch Registration No. 24992Surveyed this 26th day of December 2023.I certify that this plan, specification, or report was prepared by me or under my directsupervision and that I am a duly Licensed land Surveyor under the laws of the State ofMinnesota.FB No: 1132-49(763) 560-3093DemarcInc.comREVISION SUMMARYDEVELOPMENT OF:TYPE OF SURVEY: Existing Legal DescriptionParcel 1:Lot 24, Block 1, except the Easterly 7 feet thereof, Mork-Campion Manor, HennepinCounty, Minnesota.Abstract Property.Parcel 2:That part of Lot 25, Block 1, Mork-Campion Manor lying West of the East 7 feet thereof,Hennepin County, Minnesota.Torrens Property.Zoning InformationProperty Currently Zoned: R-1, Single-Family Residential Zoning Ordinance Requirements: Minimum Lot Width - 75 feet Minimum Corner Lot Width - 90 feet Minimum Lot Area - 9,500 sq.ft Building Setbacks Front - 25 feet (Local Street) Side Street - 25 feet (Arterial Street) Side Yard - 10/5 feet (Ten-foot side yard setbacks are required except a five-foot side yardsetback is permitted for an attached garage and any living space constructed above the attachedgarage footprint) Rear Yard - 25 feet Maximum Building Height - 2 1/2 stories or 32 feet whichever is greaterRefer to City code for additional requirements, exceptions and modifications.NOTE: REQUIREMENTS PER DOC. No. 601863 & 3191444 Building Setbacks Front - 25 feet Side Street - 15 feet Interior Side - 5 feet Rear - 25 feet Minimum Lot Width - 60 feet Minimum Lot Area - 7,000 sq.ftRefer to documents for further information.SCALE IN FEET0402060Miscellaneous NotesProperty Address: 4965 Winnetka Avenue N., New Hope, MN 55428PID No.: 07-118-21-14-0131Area of Parcel = 21,896 sq. ft.Legal description and easements per title commitment from Old RepublicNational Title Insurance Company, File No. MT23-160188-R, Policy No.OX14832237, dated June 14, 2023.Property located in Section 7, Township 118, Range 21, Hennepin County,MinnesotaBenchmark: Top nut of hydrant located on the north side of 50th Ave. N atWinnetka Ave. N. as shown hereon. Elevation = 919.23 feetUnderground utility information shown per makings located in the feild.Contact Gopher State One Call prior to any digging. (651-454-0002 or 811)123456Benchmark4965 Winnetka Ave. N.New Hope, MNProposed Legal DescriptionsParcel A: 7911 50th Ave. N (Area = 9,997 sq.ft)The West 80 feet of Lot 24, Block 1, Mork-Campion Manor, Hennepin County, Minnesota.Abstract Property.andThe West 80 feet of Lot 25, Block 1, Mork-Campion Manor, Hennepin County, Minnesota.Torrens Property.Parcel B: 7901 50th Ave. N (Area = 11,899 sq.ft)Lot 24, Block 1, except the West 80 feet and except the Easterly 7 feet thereof, Mork-CampionManor, Hennepin County, Minnesota.Abstract Property.andThat part of Lot 25, Block 1, Mork-Campion Manor lying West of the East 7 feet thereof and lyingEast of the West 80 feet thereof, Hennepin County, Minnesota.Torrens Property.SURVEY FOR:Proposed Drainage & Utility Easement DescriptionsThe North 10 feet of Lot 25, Block 1, Mork-Campion Manor, except the West 5 feet and theEasterly 7 feet thereof, Hennepin County, Minnesota.andThe West 10 feet of the East 17 feet of Lots 24 and 25, Block 1, Mork-Campion Manor, HennepinCounty, Minnesota.andThat part of Lots 24 and 25, Block 1, Mork-Campion Manor, Hennepin County, Minnesota being a10 foot strip of land which lies 5 feet on each side of and adjacent to a line drawn 80 feet east ofand parallel to the west lines of said Lots 24 and 25. Except the North 10 feet of said Lot 25 andexcept the South 5 feet of said Lot 24  WK$YHQXH1RUWK Project No: Project Title: Client: 12 TKS TKS 72621 72621 Probe Depth 12" 12" Wet Density (pcf)128.0 128.0 Moisture (pcf)13.5 13.8 Test No. Date Soil ID No. Classification Optimum Moisture % Max Lab Dry Density (pcf) In Place Moisture (%) In Place Dry Density (pcf) Compaction % Specified Compaction % 1 11/30/23 P-1 SP-SM 12.8 113.7 12 115 101% 95% 2 11/30/23 P-1 SP-SM 12.8 113.7 12 114 100% 95% 1 2 A B Signature: C Report of Field Compaction Tests Nuclear Method - ASTM D 6938-10 Standard Proctor - ASTM D 698-07 23-0953 4965 Winnetka Ave N Bollig & Sons Test No. Technician Initials Gauge Serial Number Comments A A Test No. Location:Material Tested Elevation Front of Pad House Pad Fill 98 Back of Pad House Pad Fill 98 Sr. Project Manager Elevation Reference: 100=Existing Ground Elevation Test results comply with specifications. Test results do not comply with specifications. Test results meet zero air void specifications.Jeff Haydon Tested By: RR 12-4-2023 PROCTOR TEST REPORT Dry density, pcf108 109.5 111 112.5 114 115.5 Water content, % 7 9 11 13 15 17 19 12.8%, 113.7 pcf ZAV for Sp.G. = 2.65 Test specification:ASTM D 698-07 Method A Standard SPSM 2.650 Poorly Graded Sand with Silt Light Brown 23-0953 Bollig & Sons Assumed Sp. G. of 2.650 Elev/ Classification Nat.Sp.G. LL PI % > % < Depth USCS AASHTO Moist. #4 No.200 TEST RESULTS MATERIAL DESCRIPTION Project No. Client:Remarks: Project: Location: Barton Pit Sample Number: P-1 Haugo GeoTechnical Services, LLC Maple Grove, Minnesota Figure Maximum dry density = 113.7 pcf Optimum moisture = 12.8 % 4695 Winnetka Ave. North >>>>>>>>>>>>>>>> >> >>>>>SSUl l l l l l l l l l l l l l l>>>>>>>> >> l TTTTTTTTTTTTTTTTTTTTTTTTTTTFOFOFOFOFOFOFOFOFOFOFOFOFOFOFOFOFOFOFOFOFOFOFOFOFOFOC C C C C C C C C C C C GGGGGG G G G G G G llHl80.00'lllllllllllll llll 800149575001lll>>>>>>>>>>>>>WINNETKA AVE N (CSAH 156)50TH AVE NDTDT9" CIPP (2016)6" PVC (2015)9"VCP4" VCP3/4"COPPER12" CIPGGGGGGGGGGGGGGGGGGCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC80.00'OHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPOHPDTDTDTDTDTDTDTDTDTDTDTDTDTDTDTDTDTDTDTDTDTDTDATE PROJ. NO.733 Marquette Avenue, Suite 1000Minneapolis, MN 55402www.stantec.comPROPOSED UTILITY SERVICESCITY OF NEW HOPE, MN4965 WINNETKA AVENUE N SCATTERED SITE HOUSING PROJECT NO. 10607/18/2023 193806134FIGURE 203060LEGENDPROPOSED SANITARY SEWER SERVICECIPP LINE EX. SANITARY SEWER SERVICEPROPOSED WATER SERVICE W/. CURB STOP & BOXCURB STOP & BOX54THAVENUTILITY NOTES1 REMOVE EXISTING AND INSTALL NEW34" CURB STOP ANDBOX. FREEZE SERVICE LINE PRIOR TO WORK. PATCH EX.SIDEWALK.2 TELEVISE AND CIPP LINE EXISTING 4" VCP SANITARYSEWER SERVICE (APPROX. 15 LF FROM ROW TO MAIN)3 CUT IN 10" X 6" HDPE WYE AND CONNECT TO EX. 9" CIPPLINED VCP SEWER. EXTEND 30 LF OF 6" SCHEDULE 40 PVCWITH A MIN. 2.0% SLOPE AND INSTALL CAP. PATCHEXISTING PAVEMENT, CURB AND DRAINTILE. STAMPLOCATION IN CURB.4 INSTALL 6" SADDLE, 1" CORP, 40 LF OF 1" COPPER, TYPE KWATER SERVICE WITH 1" CURB STOP AND BOX. PATCHEXISTING PAVEMENT, CURB AND DRAINTILE. STAMPLOCATION IN CURB.5 INSTALL 4" X 4" WYE, 14 LF OF 4" SCHEDULE 40 PVC FORSUMP PUMP STUB FOR WESTERLY LOT. STAMP LOCATIONOF STUB IN CURB. REFER TO STANDARD CITY DETAIL FORCONNECTION TO SUMP PUMP STUB.2GENERAL NOTES1. NEW SERVICE LOCATIONS WILL BE VERIFIED IN THE FIELDBY OWNER. HOMEBUILDER IS RESPONSIBLE FOR EXTENDINGSERVICES 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 BASE18" SELECT GRANULAR BORROWGEOTEXTILE FABRIC4. SIDEWALK PATCH TO MATCH EXISTING.5. UTILITY LOCATIONS AND ELEVATIONS ARE APPROXIMATE.CONTRACTOR TO FIELD VERIFY LOCATIONS ANDELEVATIONS.APPROXIMATE PROPOSEDHOUSE FOOTPRINT(TYP.)l>>134APPROXIMATEPROPOSEDDRIVEWAYLOCATIONS5)<  7914 4914789& 4)6*(6%-28-0)  )< 7%2 1,6-1 !  -2: ! !  ; PLATE NO. LAST REVISION:SUGGESTED SUMP PUMP TO DRAIN TILE CONNECTION STO-18A JUNE 2018 CITY OF NEW HOPE, MN 6" PERFORATED PVC DRAIN TILE AT BASE OF CONCRETE CURB & GUTTER CONCRETE CURB & GUTTER 10' HOUSE 4" NON-PERFORATED PVC DRAIN TILE (INSTALLED BY CITY) RIGHT OF WAY (APPROX. LOCATION) *PROPERTY OWNER TO REMOVE 4" PVC RISER AND CAP AND CONNECT TO EXISTING 4" PVC DRAIN TILE SUMP DRAIN TILE CONNECTION WITH TRACER WIRE (INSTALLED BY PROPERTY OWNER) SUMP DRAIN TILE CONNECTION TO HOUSE (INSTALLED BY PROPERTY OWNER) SEE CONNECTION DETAIL ABOVE PLAN VIEW - SUMP PUMP DRAIN TILE HOUSE SUMP PUMP DISCHARGE FROM HOUSE ABOVE-GROUND AIR GAP IN DISCHARGE PIPE (COORDINATE HOME CONNECTION AND AIR GAP WITH LICENSED PLUMBER)CONCRETE CURB & GUTTER 6" PERFORATED PVC DRAIN TILE AT BASE OF CONCRETE CURB & GUTTER (LOCATED APPROX. 2.5' BELOW GRADE) 4" NON-PERFORATED PVC DRAIN TILE GRADE TO DRAIN (MIN. 1.0%) PROFILE VIEW - SUMP PUMP DRAIN TILE RIGHT OF WAY (APPROX. LOCATION) *REMOVE RISER AND CAP AND CONNECT TO 4" NON-PERFORATED PVC DRAIN TILE *PRIOR TO CONNECTION TO EXISTING CITY DRAIN TILE, NOTIFY PROJECT INSPECTOR OR NEW HOPE PUBLIC WORKS AT 763-592-6777. (PERMIT REQUIRED, $1 FEE FOR PROCESSING) NOTE: THIS DETAIL IS PROVIDED ONLY AS GENERAL GUIDANCE FOR THE PROPERTY OWNER TO CONNECT TO THE CITY'S DRAIN TILE SYSTEM. IT IS RECOMMENDED TO INSTALL THE PRIVATE SUMP PUMP DRAIN TILE UTILIZING A LICENSED PLUMBER. THE CITY IS NOT RESPONSIBLE FOR IMPROPER INSTALLATION OR DAMAGE CAUSED BY THE PRIVATE SUMP PUMP DRAIN TILE CONNECTION TO THE CITY SYSTEM. NOT TO SCALE NOT TO SCALE *PRIOR TO CONNECTION TO EXISTING CITY DRAIN TILE, NOTIFY PROJECT INSPECTOR OR NEW HOPE PUBLIC WORKS AT 763-592-6777. (PERMIT REQUIRED, $1 FEE FOR PROCESSING) ATTACH LOOPED TRACER WIRE TO DRAIN TILE PIPE SUGGESTED TRACER WIRE LOOP PLATE NO. LAST REVISION: STR-10A AUG. 2019RESIDENTIAL DRIVEWAY WITH APRON CITY OF NEW HOPE, MN 18"MIN18"MINREMOVE EXISTING CURB DAMAGE (MINIMUM ONE PANEL)REMOVE EXISTING CONCRETE DRIVEWAY SURFACE EXISTING DRIVEWAY BACK OF CURBEXISTING CONCRETE CURB & GUTTER ȭ EXISTING ROADWAY REMOVE EXISTING BITUMINOUS D428 CONCRETE CURB & GUTTERSAWCUT FELT EXPANSION JOINT SAWCUT EXISTING DRIVEWAY 6" CONCRETE DRIVEWAYBITUMINOUS PATCH SECTIONEXISTING BITUMINOUS LC ONE PANEL MIMIMUM 2'2' PLATE NO. LAST REVISION: STR-30 DEC 2017 CONCRETE CURB REPLACEMENT DRIVE LOCATION (CONCRETE D/W APRON) CITY OF NEW HOPE, MN 6" CLASS 5 AGGREGATE BASE. PLAN 18'' MIN. Trees provide value from an environmental and property value standpoint. They aid in reducing storm water runoff, soil erosion, and water pollution. Other environmental benefits include the improvement of air quality and conservation of energy. Trees have also been shown to increase property values and can help beautify neighborhoods. Tree Preservation Policy The city of New Hope has a Tree Preservation Policy in place, intended to protect and preserve trees when development takes place. The policy applies to commercial, industrial, multiple family, and institutional land use development projects. The city’s Tree Preservation Policy requires that significant, preferred trees be replaced at 1 inch to 0.5 inch ratio. The ratio refers to the diameter of the tree in inches (rounding up) and the total number of diameter inches required for replacement. A Significant Tree is considered a healthy tree measuring a minimum of six inches in diameter measured five (5) feet above the existing, natural grade surrounding the tree for deciduous trees for deciduous trees, or a minimum of twelve feet in height for coniferous trees. A Preferred Tree is considered any tree that does not appear on the city’s Prohibited Tree list, as shown below. Prohibited Trees The city’s Prohibited Tree list includes the following species: x Amur Maple x Black Locust x Boxelder x Ginko (female only) x Green, White, or Black Ash (fraxinus species) x Mulberry x Non-disease resistant elm species x Nonhybrid cottonwood species x Russian Olive Buckthorn x Siberian or Chinese Elm Boulevard Tree Replacement Policy The city of New Hope has also adopted a policy to help homeowners to replace boulevard trees that have been lost to storms, disease, or other causes. The city has a preferred tree list to address tree selection considerations including hardiness, mature size, salt tolerance, pest and disease resistance, rooting habits, maintenance requirements, and soil compatibility. For more information, call 763-592-6763. City of New Hope Forestry Department 5500 International Pkwy • New Hope MN 55428 • Phone: 763-592-6777 • Fax: 763-592-6776 • ci.new-hope.mn.us Prohibited Tree List G:\CommDev\Informational Forms for CD and Public\Originals\Prohibited Tree List.docx (07-15) 17 Exhibit F Buyer’s Proposed Plans See attached. P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-11452 4965 Winnetka Ave N\Purchase and Redevelopment Agreement - 7911 and 7901 50th Ave N.docx Date: 03/202/2023 T Forceconsuling LLC 2700 Sheridan Ave N Minneapolis, MN 55411 Sub: Proposal for New Construction Custom Buit Homes- 7901 & & 7911 50th Ave N . Dear Jeff Agler: T forceconsulting LLC seeking opportunity to present the proposal for the latest scattered site Housing program, we are customer focused and fulfill their requirements with highest priority. We have 20 years Plus Design Built experience in Building construction both National and International. We would like to propose custom built homes in these lots and meeting all requirements in RFP. The following are included in the proposal package. 1. Proposal form 2. Preliminary site Plans 3. Floor Plans 4. Elevations 5. Upgrade check list with option to include customer requirements in compliance with of New Hope code. 6. Proposed sale price We look forward to build our first home in the city of New Hope Scattered Site Program. Please let us know, If you need any further information. Thank you Sincerely Ramu T-FORCECONSULTING LLC. RFP SUBMISSION SUMMARY: 7911 50th Ave N 7901 50th AVE N LOT PURCHASE PRICE $75250 $75250 Projected Sale Price $290 Per SFT $290 Per SFT BASEMENT NOT INCLUDED in Proposed Price NOT INCLUDED in Proposed Price Features Energy Efficient Building systems, Garage Door with windows and Aesthetic appearance & Address stone Energy Efficient Building systems, Garage Door with windows and Aesthetic appearance & Address stone Building Type 2 story wih Roof trusses 2 story wih Roof trusses FINISHED SQUARE FOOT 2900 SFT 2900 SFT BASEMENT UNFIISHED with Equity built to Home owner UNFIISHED with Equity built to Home owner BED ROOMS 4 BED ROOMS with 3 full attached bath rooms and 1 BED ROOM with common bathroom 4 BED ROOMS with 3 full attached bath rooms and 1 BED ROOM with common bathroom APPLIANCECS STAINLESS STEEL APPLIANCES W/ Energy Efficient STAINLESS STEEL APPLIANCES W/ Energy Efficient GARAGE 3 car garage with infill glass door 3 car garage with infill glass door Landscaping TREE plantation as per RFP TREE plantation as per RFP Budget for 7901 & 7911 50th Avenue North Fortis Builders Proposal EXPENSES AMOUNT Acquisition (230,000.00)$ Legal/closing costs for purchase (estimated)(5,000.00)$ Appraisal (350.00)$ Demolition survey (650.00)$ Demolition and site prep (71,000.00)$ Real estate taxes (estimated at 12 months)(4,230.00)$ Lawn services (estimated)(2,000.00)$ Utility billing (estimated)(300.00)$ Surveying fees for lot split (2,400.00)$ Consultant fees for lot split (estimated)(1,500.00)$ Park dedication fee (3,000.00)$ Public hearing notices (estimated)(150.00)$ Legal/closing costs for sale (estimated)(3,500.00)$ TOTAL (324,080.00)$ REVENUE AMOUNT EDA (estimated lot sale proceeds)161,000.00$ TOTAL 161,000.00$ TOTAL COST/REVENUE (163,080.00)$ Budget for 7901 & 7911 50th Avenue North Noberg Homes Proposal EXPENSES AMOUNT Acquisition (230,000.00)$ Legal/closing costs for purchase (estimated)(5,000.00)$ Appraisal (350.00)$ Demolition survey (650.00)$ Demolition and site prep (71,000.00)$ Real estate taxes (estimated at 12 months)(4,230.00)$ Lawn services (estimated)(2,000.00)$ Utility billing (estimated)(300.00)$ Surveying fees for lot split (2,400.00)$ Consultant fees for lot split (estimated)(1,500.00)$ Park dedication fee (3,000.00)$ Public hearing notices (estimated)(150.00)$ Legal/closing costs for sale (estimated)(3,500.00)$ TOTAL (324,080.00)$ REVENUE AMOUNT EDA (estimated lot sale proceeds)161,500.00$ TOTAL 161,500.00$ TOTAL COST/REVENUE (162,580.00)$ Fortis Builders Proposal Taxable Market Value 2023, Payable 2024 Projected Taxable Value 2025, Payable 2026 Change Percent Change 289,100.00$ 930,000.00$ 640,900.00$ 221.69% Estimated Taxes Allocated to City 2023, Payable 2024 Projected Taxes Allocated to City 2025, Payable 2026 Change Percent Change 1,734.60$ 5,580.00$ 3,845.40$ 221.69% Projected Project Expenses (324,080.00)$ Lot Sale Revenue 161,000.00$ Total Cost/Revenue (163,080.00)$ # of Years (Year) Additional Taxes Collected By City Total Cost/ Revenue Return On Investment 0 (present)-$ (163,080.00)$ -100.00% 1 (payable 2026)3,845.40$ (159,234.60)$ -97.64% 2 (payable 2027)7,806.16$ (155,273.84)$ -95.21% 3 (payable 2028)11,885.75$ (151,194.25)$ -92.71% 4 (payable 2029)16,087.72$ (146,992.28)$ -90.14% 5 (payable 2030)20,415.75$ (142,664.25)$ -87.48% 10 (payable 2035)44,083.20$ (118,996.80)$ -72.97% 15 (payable 2040)71,520.26$ (91,559.74)$ -56.14% 20 (payable 2045)103,327.34$ (59,752.66)$ -36.64% 25 (payable 2050)140,200.46$ (22,879.54)$ -14.03% 30 (payable 2055)182,946.50$ 19,866.50$ 12.18% *Based on two new homes valued at $490,000 and $440,000 Estimated Tax Impact of Improvements at 7901 & 7911 50th Avenue North Noberg Homes Proposal Taxable Market Value 2023, Payable 2024 Projected Taxable Value 2025, Payable 2026 Change Percent Change 289,100.00$ 964,335.00$ 675,235.00$ 233.56% Estimated Taxes Allocated to City 2023, Payable 2024 Projected Taxes Allocated to City 2025, Payable 2026 Change Percent Change 1,734.60$ 5,786.01$ 4,051.41$ 233.56% Projected Project Expenses (324,080.00)$ Lot Sale Revenue 161,500.00$ Total Cost/Revenue (162,580.00)$ # of Years (Year) Additional Taxes Collected By City Total Cost/ Revenue Return On Investment 0 (present)-$ (162,580.00)$ -100.00% 1 (payable 2026)4,051.41$ (158,528.59)$ -97.51% 2 (payable 2027)8,224.36$ (154,355.64)$ -94.94% 3 (payable 2028)12,522.50$ (150,057.50)$ -92.30% 4 (payable 2029)16,949.59$ (145,630.41)$ -89.57% 5 (payable 2030)21,509.49$ (141,070.51)$ -86.77% 10 (payable 2035)46,444.88$ (116,135.12)$ -71.43% 15 (payable 2040)75,351.83$ (87,228.17)$ -53.65% 20 (payable 2045)108,862.90$ (53,717.10)$ -33.04% 25 (payable 2050)147,711.43$ (14,868.57)$ -9.15% 30 (payable 2055)192,747.51$ 30,167.51$ 18.56% *Based on two new homes valued at $499,485 and $464,850 Estimated Tax Impact of Improvements at 7901 & 7911 50th Avenue North Estimated Return on Investment for 7901 & 7911 50th Avenue North Fortis Builders Proposal Description Taxable Market Value Change Cash Flow Investment -$ (163,080.00)$ Return, Year 1 640,900.00$ 3,845.40$ Return, Year 2 660,127.00$ 3,960.76$ Return, Year 3 679,930.81$ 4,079.58$ Return, Year 4 700,328.73$ 4,201.97$ Return, Year 5 721,338.60$ 4,328.03$ Return, Year 6 742,978.75$ 4,457.87$ Return, Year 7 765,268.12$ 4,591.61$ Return, Year 8 788,226.16$ 4,729.36$ Return, Year 9 811,872.95$ 4,871.24$ Return, Year 10 836,229.13$ 5,017.37$ Return, Year 11 861,316.01$ 5,167.90$ Return, Year 12 887,155.49$ 5,322.93$ Return, Year 13 913,770.15$ 5,482.62$ Return, Year 14 941,183.26$ 5,647.10$ Return, Year 15 969,418.75$ 5,816.51$ Return, Year 16 998,501.32$ 5,991.01$ Return, Year 17 1,028,456.36$ 6,170.74$ Return, Year 18 1,059,310.05$ 6,355.86$ Return, Year 19 1,091,089.35$ 6,546.54$ Return, Year 20 1,123,822.03$ 6,742.93$ Return, Year 21 1,157,536.69$ 6,945.22$ Return, Year 22 1,192,262.79$ 7,153.58$ Return, Year 23 1,228,030.67$ 7,368.18$ Return, Year 24 1,264,871.59$ 7,589.23$ Return, Year 25 1,302,817.74$ 7,816.91$ Return, Year 26 1,341,902.28$ 8,051.41$ Return, Year 27 1,382,159.34$ 8,292.96$ Return, Year 28 1,423,624.12$ 8,541.74$ Return, Year 29 1,466,332.85$ 8,798.00$ Return, Year 30 1,510,322.83$ 9,061.94$ Total Returns 182,946.50$ Investment Cost 324,080.00$ Selling Price 161,000.00$ Return on Investment 12.18% Estimated Return on Investment for 7901 & 7911 50th Avenue North Noberg Homes Proposal Description Taxable Market Value Change Cash Flow Investment -$ (162,580.00)$ Return, Year 1 675,235.00$ 4,051.41$ Return, Year 2 695,492.05$ 4,172.95$ Return, Year 3 716,356.81$ 4,298.14$ Return, Year 4 737,847.52$ 4,427.09$ Return, Year 5 759,982.94$ 4,559.90$ Return, Year 6 782,782.43$ 4,696.69$ Return, Year 7 806,265.90$ 4,837.60$ Return, Year 8 830,453.88$ 4,982.72$ Return, Year 9 855,367.50$ 5,132.20$ Return, Year 10 881,028.52$ 5,286.17$ Return, Year 11 907,459.38$ 5,444.76$ Return, Year 12 934,683.16$ 5,608.10$ Return, Year 13 962,723.65$ 5,776.34$ Return, Year 14 991,605.36$ 5,949.63$ Return, Year 15 1,021,353.52$ 6,128.12$ Return, Year 16 1,051,994.13$ 6,311.96$ Return, Year 17 1,083,553.95$ 6,501.32$ Return, Year 18 1,116,060.57$ 6,696.36$ Return, Year 19 1,149,542.39$ 6,897.25$ Return, Year 20 1,184,028.66$ 7,104.17$ Return, Year 21 1,219,549.52$ 7,317.30$ Return, Year 22 1,256,136.01$ 7,536.82$ Return, Year 23 1,293,820.09$ 7,762.92$ Return, Year 24 1,332,634.69$ 7,995.81$ Return, Year 25 1,372,613.73$ 8,235.68$ Return, Year 26 1,413,792.14$ 8,482.75$ Return, Year 27 1,456,205.90$ 8,737.24$ Return, Year 28 1,499,892.08$ 8,999.35$ Return, Year 29 1,544,888.84$ 9,269.33$ Return, Year 30 1,591,235.51$ 9,547.41$ Total Returns 192,747.51$ Investment Cost 324,080.00$ Selling Price 161,500.00$ Return on Investment 18.56% Fortis Builders Proposal Description Amount Investment (163,080.00)$ Return, Year 1 3,845.40$ Return, Year 2 3,960.76$ Return, Year 3 4,079.58$ Return, Year 4 4,201.97$ Return, Year 5 4,328.03$ Return, Year 6 4,457.87$ Return, Year 7 4,591.61$ Return, Year 8 4,729.36$ Return, Year 9 4,871.24$ Return, Year 10 5,017.37$ Return, Year 11 5,167.90$ Return, Year 12 5,322.93$ Return, Year 13 5,482.62$ Return, Year 14 5,647.10$ Return, Year 15 5,816.51$ Return, Year 16 5,991.01$ Return, Year 17 6,170.74$ Return, Year 18 6,355.86$ Return, Year 19 6,546.54$ Return, Year 20 6,742.93$ Return, Year 21 6,945.22$ Return, Year 22 7,153.58$ Return, Year 23 7,368.18$ Return, Year 24 7,589.23$ Return, Year 25 7,816.91$ Return, Year 26 8,051.41$ Return, Year 27 8,292.96$ Return, Year 28 8,541.74$ Return, Year 29 8,798.00$ Return, Year 30 9,061.94$ Total Returns 182,946.50$ Internal Rate of Return 0.66% Estimated Internal Rate of Return for 7901 & 7911 50th Avenue North Noberg Homes Proposal Description Amount Investment (162,580.00)$ Return, Year 1 4,051.41$ Return, Year 2 4,172.95$ Return, Year 3 4,298.14$ Return, Year 4 4,427.09$ Return, Year 5 4,559.90$ Return, Year 6 4,696.69$ Return, Year 7 4,837.60$ Return, Year 8 4,982.72$ Return, Year 9 5,132.20$ Return, Year 10 5,286.17$ Return, Year 11 5,444.76$ Return, Year 12 5,608.10$ Return, Year 13 5,776.34$ Return, Year 14 5,949.63$ Return, Year 15 6,128.12$ Return, Year 16 6,311.96$ Return, Year 17 6,501.32$ Return, Year 18 6,696.36$ Return, Year 19 6,897.25$ Return, Year 20 7,104.17$ Return, Year 21 7,317.30$ Return, Year 22 7,536.82$ Return, Year 23 7,762.92$ Return, Year 24 7,995.81$ Return, Year 25 8,235.68$ Return, Year 26 8,482.75$ Return, Year 27 8,737.24$ Return, Year 28 8,999.35$ Return, Year 29 9,269.33$ Return, Year 30 9,547.41$ Total Returns 192,747.51$ Internal Rate of Return 0.99% Estimated Internal Rate of Return for 7901 & 7911 50th Avenue North Fortis Builders Proposal 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 1 289,100.00$ 930,000.00$ 640,900.00$ 3,845.40$ 2 297,773.00$ 957,900.00$ 660,127.00$ 3,960.76$ 3 306,706.19$ 986,637.00$ 679,930.81$ 4,079.58$ 4 315,907.38$ 1,016,236.11$ 700,328.73$ 4,201.97$ 5 325,384.60$ 1,046,723.19$ 721,338.60$ 4,328.03$ 6 335,146.13$ 1,078,124.89$ 742,978.75$ 4,457.87$ 7 345,200.52$ 1,110,468.64$ 765,268.12$ 4,591.61$ 8 355,556.53$ 1,143,782.69$ 788,226.16$ 4,729.36$ 9 366,223.23$ 1,178,096.18$ 811,872.95$ 4,871.24$ 10 377,209.93$ 1,213,439.06$ 836,229.13$ 5,017.37$ 11 388,526.23$ 1,249,842.23$ 861,316.01$ 5,167.90$ 12 400,182.01$ 1,287,337.50$ 887,155.49$ 5,322.93$ 13 412,187.47$ 1,325,957.62$ 913,770.15$ 5,482.62$ 14 424,553.10$ 1,365,736.35$ 941,183.26$ 5,647.10$ 15 437,289.69$ 1,406,708.44$ 969,418.75$ 5,816.51$ 16 450,408.38$ 1,448,909.70$ 998,501.32$ 5,991.01$ 17 463,920.63$ 1,492,376.99$ 1,028,456.36$ 6,170.74$ 18 477,838.25$ 1,537,148.30$ 1,059,310.05$ 6,355.86$ 19 492,173.40$ 1,583,262.75$ 1,091,089.35$ 6,546.54$ 20 506,938.60$ 1,630,760.63$ 1,123,822.03$ 6,742.93$ 21 522,146.76$ 1,679,683.45$ 1,157,536.69$ 6,945.22$ 22 537,811.16$ 1,730,073.95$ 1,192,262.79$ 7,153.58$ 23 553,945.50$ 1,781,976.17$ 1,228,030.67$ 7,368.18$ 24 570,563.86$ 1,835,435.46$ 1,264,871.59$ 7,589.23$ 25 587,680.78$ 1,890,498.52$ 1,302,817.74$ 7,816.91$ 26 605,311.20$ 1,947,213.47$ 1,341,902.28$ 8,051.41$ 27 623,470.54$ 2,005,629.88$ 1,382,159.34$ 8,292.96$ 28 642,174.65$ 2,065,798.78$ 1,423,624.12$ 8,541.74$ 29 661,439.89$ 2,127,772.74$ 1,466,332.85$ 8,798.00$ 30 681,283.09$ 2,191,605.92$ 1,510,322.83$ 9,061.94$ 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 $413,800 in value. Tax Calculator for 7901 & 7911 50th Avenue North Noberg Homes Proposal Year Original Taxable Market Value (assumes growth in value over time) Improved Taxable Market Value (assumes growth in value over time) New Taxable Value Projected City Taxes on New Taxable Market Value 1 289,100.00$ 964,335.00$ 675,235.00$ 4,051.41$ 2 297,773.00$ 993,265.05$ 695,492.05$ 4,172.95$ 3 306,706.19$ 1,023,063.00$ 716,356.81$ 4,298.14$ 4 315,907.38$ 1,053,754.89$ 737,847.52$ 4,427.09$ 5 325,384.60$ 1,085,367.54$ 759,982.94$ 4,559.90$ 6 335,146.13$ 1,117,928.56$ 782,782.43$ 4,696.69$ 7 345,200.52$ 1,151,466.42$ 806,265.90$ 4,837.60$ 8 355,556.53$ 1,186,010.41$ 830,453.88$ 4,982.72$ 9 366,223.23$ 1,221,590.73$ 855,367.50$ 5,132.20$ 10 377,209.93$ 1,258,238.45$ 881,028.52$ 5,286.17$ 11 388,526.23$ 1,295,985.60$ 907,459.38$ 5,444.76$ 12 400,182.01$ 1,334,865.17$ 934,683.16$ 5,608.10$ 13 412,187.47$ 1,374,911.12$ 962,723.65$ 5,776.34$ 14 424,553.10$ 1,416,158.46$ 991,605.36$ 5,949.63$ 15 437,289.69$ 1,458,643.21$ 1,021,353.52$ 6,128.12$ 16 450,408.38$ 1,502,402.51$ 1,051,994.13$ 6,311.96$ 17 463,920.63$ 1,547,474.58$ 1,083,553.95$ 6,501.32$ 18 477,838.25$ 1,593,898.82$ 1,116,060.57$ 6,696.36$ 19 492,173.40$ 1,641,715.79$ 1,149,542.39$ 6,897.25$ 20 506,938.60$ 1,690,967.26$ 1,184,028.66$ 7,104.17$ 21 522,146.76$ 1,741,696.28$ 1,219,549.52$ 7,317.30$ 22 537,811.16$ 1,793,947.17$ 1,256,136.01$ 7,536.82$ 23 553,945.50$ 1,847,765.58$ 1,293,820.09$ 7,762.92$ 24 570,563.86$ 1,903,198.55$ 1,332,634.69$ 7,995.81$ 25 587,680.78$ 1,960,294.50$ 1,372,613.73$ 8,235.68$ 26 605,311.20$ 2,019,103.34$ 1,413,792.14$ 8,482.75$ 27 623,470.54$ 2,079,676.44$ 1,456,205.90$ 8,737.24$ 28 642,174.65$ 2,142,066.73$ 1,499,892.08$ 8,999.35$ 29 661,439.89$ 2,206,328.74$ 1,544,888.84$ 9,269.33$ 30 681,283.09$ 2,272,518.60$ 1,591,235.51$ 9,547.41$ 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 7901 & 7911 50th Avenue North Comparison of Costs & Tax Impact for Recent Projects Since implementation of analysis template that utilizes tax growth rate assumptions (September of 2020) 4965 Winnetka Avenue North – Fortis Builders 4965 Winnetka Avenue North – Noberg Homes 5802 Boone 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 2 2 1 1 2 1 1 1 1 Project Description Demolition, lot split & rebuild Demolition, lot split & rebuild Demolition & rebuild Demolition & rebuild Demolition, lot split & rebuild Demolition & rebuild Demolition & rebuild Demolition & rebuild Demolition & rebuild Year Acquired 2023 2023 2023 2022 2022 2022 2021 2021 2020 Projected or Actual 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) Projected (at time of lot sale) Projected (at time of lot sale) Projected (at time of lot sale) Expenses ($324,080.00) ($324,080.00) ($196,964.00) ($258,423.00) ($344,888.00) ($253,072.00) ($205,172.18) ($127,292.01) ($170,441.53) Revenue $161,000.00 $161,500.00 $70,000.00 $75,000.00 $161,000.00 $87,000.00 $72,000.00 $81,000.00 $69,000.00 Total Cost/Revenue ($163,080.00) ($162,580.00) ($126,964.00) ($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) $930,000 total $964,335 total $475,000 $475,000 $475,000 per home $950,000 total $575,000 $485,000 $445,000 $380,000 *Additional Taxes Collected by City - 1 year $3,845.40 $4,051.41 $2,283.00 $1,344.00 $5,700.00 $2,100.00 $1,902.00 $1,254.00 $786.00 *Additional Taxes Collected by City - 30 years $182,946.50 $192,747.51 $108,614.67 $63,941.36 $271,179.87 $99,908.37 $90,488.44 $59,659.57 $37,394.28 *Return On Investment - 30 years 12.18% 18.56% -14.45% -65.14% 47.47% -39.84% -32.05% 28.88% -63.14% *Internal Rate of Return - 30 years 0.66% 0.99% -0.86% -5.26% 2.33% -2.69% -2.08% 1.49% -5.01% *Assumed 3% tax value growth rate https://newhopemn.sharepoint.com/sites/Files/All User Access/RFA/COMM DEV/2024/EDA/04‐08‐24 Home Energy Squad Contract/EDA5 Q ‐ CEE Home Energy Visits  Contract 04‐08‐24.docx   Request for Action  April 8, 2024    Approved by: Reece Bertholf, Executive Director  Originating Department: Community Development  By: Jeff Alger, Community Development Specialist;   Jeff Sargent, Director   Agenda Title  Resolution approving agreement with Center for Energy and Environment to perform Home Energy Squad  visits in the city of New Hope through December 31, 2026  Requested Action  Staff requests that the Economic Development Authority (EDA) approve a resolution approving an agreement  with the Center for Energy and Environment to continue performing Home Energy Squad visits in New Hope  through December 31, 2026, with costs not to exceed $3,000 per year without further authorization.  Policy/Past Practice  It is a practice of the EDA to review and approve housing programs that will be offered within the city.  Background  Since 2013 the city has partnered with the Center for Energy and Environment (CEE) to help residents save  energy and money on utility bills through Home Energy Squad visits. The CEEʹs team of energy consultants  visit homes in New Hope, evaluate energy savings opportunities, and install energy‐efficient materials. The  city buys down the cost of the following visits:    Energy Planner Visits   City pays $50 and resident pays $50.   Visits include installation of energy‐saving materials when possible, including high‐efficiency  showerheads, faucet aerators, door weather stripping, programmable thermostats, and LED light bulbs.  Includes blower door test to check for air leaks, visual inspection of insulation levels with use of infrared  camera, heating system and hot water heater combustion safety tests, and a report to the homeowner  on recommended energy upgrades.    Energy Saver Visits   City pays $35 and resident pays $35.   Visits include insulation inspection, heating system and water safety checks, and installation of energy‐ saving materials when possible, including high‐efficiency showerheads, faucet aerators, door weather  stripping, programmable thermostats, and LED light bulbs.    The CEE is proposing an extension of the contract through December 31, 2026. The city would continue to  reimburse the CEE $50 for every Energy Planner visit completed and $35 for every Energy Saver visit  completed, not to exceed $3,000 per year without further authorization from the EDA. As shown in the table  below, the CEE has completed a total of 400 visits in New Hope since 2013, averaging 36 visits per year. The  EDA has averaged $1,809 in expenses per year.      Agenda Section EDA Item Number  5    Request for Action, Page 2  Year # of Visits Cost to EDA  2013 56 $2,800  2014 54 $2,700  2015 46 $2,300  2016 33 $1,650  2017 29 $1,450  2018 29 $1,450  2019 29 $1,450  2020 29 $1,420  2021 31 $1,535  2022 33 $1,635  2023 31 $1,505  Total 400 $19,895    Funding  Funding for the program would come from the EDA budget.  Recommendation  Staff recommends that the EDA approve a resolution approving an agreement with the CEE to continue  performing Home Energy Squad visits in New Hope through December 31, 2026, with costs not to exceed  $3,000 per year without further authorization.  Attachments   Resolution   Agreement    CITY OF NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 24-___ RESOLUTION APPROVING AGREEMENT WITH CENTER FOR ENERGY AND ENVIRONMENT TO PERFORM HOME ENERGY SQUAD VISITS IN THE CITY OF NEW HOPE THROUGH DECEMBER 31, 2026 BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope (“EDA”) as follows: WHEREAS, the Center for Energy and the Environment was authorized to begin conducting Home Energy Squad Visits in January of 2013; and WHEREAS, the city desires to continue the promotion of well-maintained and energy- efficient homes within the city; and WHEREAS, the city has appointed the Center for Energy and Environment to administer many city housing programs; and WHEREAS, this service has been well-received by the residents of the city of New Hope. NOW, THEREFORE, BE IT RESOLVED THAT THE Economic Development Authority in and for the City of New Hope authorizes the Executive Director of the New Hope Economic Development Authority to execute the Agreement between the Economic Development Authority and the Center for Energy and Environment for the provision of Home Energy Squad Visit, not to exceed $3,000 per year without further authorization. Dated the 8th day of April, 2024. ____________________________________ Kathi Hemken, President Attest: _____________________________ Reece Bertholf, Executive Director AGREEMENT to Perform Home Energy Squad Visits In the City of New Hope This Agreement is made by and between the City of New Hope (“CITY”) with offices at 4401 Xylon Avenue North, New Hope, MN 55428 and the Center for Energy and Environment (“CEE”), with offices at 212 3rd Avenue North, Suite 560, Minneapolis, Minnesota 55401. The following agreement is for the Center for Energy and Environment (CEE) to deliver Home Energy Squad visits to residents of the City of New Hope. PROGRAM SCOPE The purpose of the Home Energy Squad visits are to promote energy conservation in residential properties. Energy Saver visits offer energy efficient installs, and Energy Planner visits offer installs, diagnostic tests, and follow-up services. CEE will perform Home Energy Squad Energy Saver and Energy Planner visits for residents per the fee schedule listed below. ELIGIBLE PROPERTIES Properties must be residential (from 1-4 units) and located within the geographical boundaries of the City of New Hope. Individual owners of condominiums or town homes are eligible for funding. CEE TASKS 1. Conduct Home Energy Squad Energy Saver Visits. CEE will conduct Home Energy Squad Energy Saver visits to help homeowners identify and implement energy savings opportunities in their homes. The visit will include an insulation inspection, safety check on heating system and water, and the direct install of energy-saving materials where possible, including high-efficiency showerheads, faucet aerators, door weather stripping, programmable or smart thermostats and LED light bulbs. 2. Conduct Home Energy Squad Energy Planner Visits. CEE will conduct Home Energy Squad Energy Planner visits to help homeowners identify and implement energy savings opportunities in their homes. The Energy Planner visit will include the direct install of energy-saving materials where possible, including high-efficiency showerheads, faucet aerators, door weather stripping, programmable or smart thermostats and LED light bulbs. In addition, it will include a blower door test to check for air leaks, visual inspection of insulation levels with use of infrared camera as weather permits, heating system and hot water heater combustion safety tests and a report to the homeowner on recommended energy upgrades (if resident is a renter, permission from the landlord may be required for doing these additional diagnostic services). The co-pay and exact package of services are subject to change based on programmatic considerations, including CEE’s agreement with utilities and other factors which are outside the bounds of this agreement. CEE will notify the City of New Hope prior to any changes taking effect. CEE will lead a community-based marketing campaign to promote the program. The City of New Hope shall provide assistance in developing and implementing this campaign. 3. Providing Air Sealing and Insulation quotes. If air sealing and/or insulation are recommended at a Home Energy Squad Energy Planner visit, CEE may provide a quote to the resident that would be honored by participating insulation contractors. CEE is an independent third party to any transaction between the resident and the insulation contractor. CEE does not receive any compensation from insulation contractors, nor does CEE, CenterPoint Energy or Xcel Energy accept any liability for any work performed Type of Home Energy Squad Visit City payment Resident co-pay Energy Saver visit $35 $35 Energy Planner visit $50 $50 by these contractors. Any agreement for work done by the contractors is solely between the contractor and the resident. 4. Follow-up services and insulation contractor assistance. If major upgrades (air sealing, insulation and furnace or boiler replacement) are recommended at the visit, CEE will follow -up with homeowners through email or by phone to encourage implementation. When a quote is provided CEE has the ability to schedule insulation work directly with a qualified contractor making it easier for homeowner to move forward with recommendations. CEE will also provide contact information to program participants who have follow-up questions after the home visit. CITY TASKS 1. Assist and coordinate with CEE on marketing activities. This includes working with CEE on press releases, articles in CITY newsletters, water bill inserts, promoting program on CITY website, CITY email lists, assistance in coordinating with neighborhood and other CITY leaders, assistance in reserving workshop and event space as needed. PAYMENT CEE shall submit regular invoices to the City of New Hope for activity performed under this agreement. Invoices will be emailed to Jeff Sargent. The City of New Hope will reimburse CEE $35 for every Home Energy Squad Energy Saver visit completed and $50 for every Home Energy Squad Energy Planner visit completed, not to exceed $3,000 per year or per contract without further authorization from the City. CONTACTS The following individuals shall be contacts for this program: CITY OF NEW HOPE CONTACT PERSON Jeff Sargent, City of New Hope Director of Community Development jsargent@ci.new-hope.mn.us or 763-531-5196 CEE CONTACT PERSON Stacy Boots Camp, Center for Energy and Environment Outreach Manager sbootscamp@mncee.org or 612-244-2429 TERM The project shall run from April 23, 2024 through December 31, 2026 and may be extended upon mutual agreement by the parties. In witness thereof, the parties have executed this work order as of the date written below. CITY OF NEW HOPE CENTER FOR ENERGY AND ENVIRONMENT By: By: Date: Date: TAX ID 41-1647799