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
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(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.
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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
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___________________________________________________________________________
___________________________________________________________________________
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