The URL can be used to link to this page

011413 EDACITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North January 14, 2013 EDA Meeting will commence upon adjournment of the City Council Meeting President Kathi Hemken Commissioner John Elder Commissioner Andy Hoffe Commissioner Eric Lammle Commissioner Daniel Stauner 1. Call to order 2. Roll call 3. Approval of minutes: ® July 23, 2012 • November 19, 2012 • November 19, 2012 (executive session) 4. Approval of a blight resolution for the properties located at 4200 and 4300 Xylon Avenue North; and approval of resolutions authorizing internal (interfund) loans to a future TIF District for the properties located at 4200 and 4300 Xylon Avenue North (improvement project no. 893) 5. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes July 23, 2012 Regular Meeting City Hall CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to order at 7:28 p.m. ROLL. CALL Present: Kathi Hemken, President John Elder, Commissioner Andy Hoffe, Commissioner Eric Lammle, Commissioner Daniel Stauner, Commissioner Staff Present: Kirk McDonald, City Manager Steve Ellingson, Athletic Supervisor Tim Fournier, Director of Police Curtis Jacobsen, Director of Community Development Gordon Jensen, Assistant City Attorney Guy Johnson, Director of Public Works Valerie Leone, City Clerk Chris Long, City Engineer Susan Rader, Director of Parks and Recreation Eric Weiss, Community Development Assistant APPROVE MINUTES Motion was made by Commissioner Hoffe, seconded by Commissioner Elder, to approve the Regular Meeting Minutes of May 14, 2012. All present voted in favor. Motion carried TIF DISTRICTS President Hemken introduced for discussion Item 4, Resolution adopting a Item 4 modification to the Redevelopment Plan for Redevelopment Project No. 1, and adopting modified Tax Increment Financing Plans for Tax Increment Financing District No. 85 -1, No. 85 -2 and No. 86 -1 therefor. Ms. Stacy Kvilvang of Ehlers & Associates was introduced. Ms. Kvilvang stated the modification relates to Redevelopment Project No 1 as well as modifications to TIF District No. 85 -1, 85 -2, and 86 -1. She stated the first portion of the modification is with regard to the redevelopment project area. She explained that in order to utilize or spend TIF funds the city must establish a project area and this was done in 1988. She stated part of that is not only identifying the findings for creating the project but stating the goals to be accomplished by the city. She stated setting district boundaries is also critical and for New Hope the boundaries have traditionally followed the boundaries of the individual TIF districts. Ms. Kvilvang stated the action tonight is to expand the project area within the boundaries of Redevelopment Project No. 1 to be coterminous with the corporate boundaries of the city. She illustrated the new map showing city boundaries as Redevelopment Project No. 1. EDA Meeting Page 1 July 23, 2012 She stated all three TIF districts will expire the end of this year, and it was discovered there is greater funds than were originally authorized so a public hearing is necessary to expand the budget to accomplish goals. She stated it is also necessary to identify parcels likely to be purchased. She reviewed a list of parcels that may be purchased but noted the list is not all inclusive and does not preclude the city from making additional purchases. She stated the parcels are repeated for all three TIF Districts for flexibility and the use of tax increment from the districts will assist with the acquisition of the Kmart property. Ms. Kvilvang stated modifications will allow the city to acquire, rehabilitate, and /or demolish existing residential and commercial units, relocate existing businesses and residents, make necessary site improvements and resell the rehabilitated homes and /or vacant residential or commercial lots for development and allow the city to make necessary public improvements to roadways, sidewalks and utilities as required. She noted currently under consideration for use of funds outside of District 85 -1 but within Redevelopment Project No. 1 is the acquisition of various parcels for redevelopment, road reconstruction and public improvements along Xylon Avenue from 42nd to 46th Avenue and along 45th Avenue from Xylon to Winnetka Avenue and burying of existing power lines along Bass Lake Road from Winnetka Avenue to Boone Avenue. Ms. Kvilvang stated the modifications conform the budget to current guidelines by the Office of the State Auditor. She also stated the Planning Commission reviewed the plan at its July 10 meeting and found the plans to be in conformance with the city's redevelopment plans. She stated it is necessary to hold a public hearing by the City Council after the EDA adopts the resolution. RESOLUTION 2012 -04 Commissioner Elder introduced the following resolution and moved its Item 4 adoption "RESOLUTION ADOPTING A MODIFICATION TO THE REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1, AND ADOPTING MODIFIED TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICT NO. 85 -1, NO. 85 -2 AND NO. 86 -1 THEREFOR ". The motion for the adoption of the foregoing resolution was seconded by Commissioner Stauner, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle, Stauner; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed a nd adopted, signed by the president which was attested to by the executive director. ADJOURNMENT Motion was made by Commissioner Stauner, seconded by Commissioner Hoffe, to adjourn the meeting. All present voted in favor. Motion carried The New Hope EDA adjourned at 7:35 p.m. Respectfully submitted, - Valerie Leone, City Clerk EDA Meeting Page 2 July 23, 2012 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes November 19, 2012 Regular Meeting City Hall CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to order at 8:44 p.m. ROLL CALL Present: Kathi Hemken, President John Elder, Commissioner Andy Hoffe, Commissioner Eric Lammle, Commissioner Daniel Stauner, Commissioner Staff Present: Kirk McDonald, City Manager Curtis Jacobsen, Director of Community Development Valerie Leone, City Clerk Steve Sondrall, City Attorney Also Present: Stacie Kvilvang, Ehlers and Associates CLOSED MEETING President Hemken introduced for discussion EDA Item 3, Resolution calling for a closed meeting of the New Hope Economic Development Authority authorized by Minn. Stat §13d.05, Subd. 3 to discuss and consider the asking price for real property to be sold by the EDA (improvement project #893). RESOLUTION 2012 -05 Commissioner Lammle introduced the following resolution and moved its Item 3 adoption "RESOLUTION CALLING FOR A CLOSED MEETING OF THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY" AUTHORIZED BY MINN. STAT §13D.05, SUBD. 3 TO DISCUSS AND CONSIDER THE ASKING PRICE FOR REAL PROPERTY TO BE SOLD BY THE EDA ". The motion for the adoption of the foregoing resolution was seconded by Commissioner Stauner, and upon vote being taken thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle, Stauner; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. ADJOURNMENT The New Hope EDA adjourned at 8:45 p.m. Respectfully submitted, Valerie Leone, City Clerk EDA Meeting Page 1 November 19, 2012 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes November 19, 2012 Executive Session City Hall CALL TO ORDER President Hemken called the closed meeting of the Economic Development Authority to order at 8:46 p.m. ROLL CALL Present: Kathi Hemken, President John Elder, Commissioner Andy Hoffe, Commissioner Eric Lammle, Commissioner Daniel Stauner, Commissioner Staff Present: Kirk McDonald, City Manager Curtis Jacobsen, Director of Community Development Valerie Leone, City Clerk Steve Sondrall, City Attorney Also Present: Stacie Kvilvang, Ehlers and Associates CLOSED MEETING President Hemken explained the purpose of the closed meeting is to consider the asking price for real property to be sold by the EDA. The EDA discussed the 1 -1/2 to 2 acres of property in the southwest corner of the K -Mart /Wells Fargo site located at 42nd Avenue and Xylon Avenue North. A specific price was not established for the property. The EDA determined they would consider 'Best Offers" from "targeted" developers /businesses. ADJOURNMENT The New Hope EDA adjourned at 9:15 p.m. Respectfully submitted, t Valerie Leone, City Clerk EDA Meeting Page 1 November 19, 2012 EDA �0� Originating Department Community Development By: Curtis Jacobsen, Director of CD Jeff Sargent, CD Approved for Agenda January 14, 2013 Agenda Section EDA Item No. . Kirk 4 Approval of a blight resolution for the properties located at 4200 and 4300 Xylon Avenue North; and approval of resolutions authorizing internal (interfund) loans to a future TIF District for the properties located at 4200 and 4300 Xylon Avenue N. (improvement project no. 893) Requested Action Staff requests that the EDA approve a resolution establishing that the properties and buildings located at 4200 Xylon Avenue North and 4300 Xylon Avenue North meet the blight test criteria, and have ample structural deficiencies to create a TIF district on these two properties in the future. Policy /Past Practice It is the practice of the EDA to require the approval of resolutions establishing blight on a property in order to create TIF districts. Background LHB has been hired in order to complete a blight analysis of the two redevelopment properties at 4200 and 4300 Xylon Avenue North. In order to preserve the EDA's ability to repay itself for its investment in the property, staff wants to make sure the EDA has the ability to create a redevelopment TIF district on these two parcels, if it so chooses. In order to create this type of TIF district, the parcels to be included have to meet a two -fold test: 70% of the parcels have to be covered. (This test is met if 15% of the area of the parcel is covered by buildings, parking, sidewalks, utilities, etc.); and E /)A I_ '9--o 1-3 - 6 1: \ RFA \ COMM DEV \ Development\ Q R - Kmart Resolution 1- 14- 13.doc Request for Action January 14, 2013 Page 2 2. More than 50% of the structures have to be considered substandard. (This test is met if the cost to bring the building up to current code requirements is more than 15% of the cost to construct the facility today.) The report from LHB has been finalized and it has been determined that the two parcels meet the two -fold test for blight. For this reason, staff is recommending the EDA pass a resolution stating that the parcels were occupied by structurally substandard buildings and that after demolition the EDA intends to include the parcels within a redevelopment TIF district. The EDA will have three (3) years from the date of the resolution to create a redevelopment TIF district on these two parcels. In addition, it is recommended that the EDA should approve an interfund loan resolution to cover the costs of the demolition of the Kmart building and the Wells Fargo drive- through building located on the subject parcels. State Statute requires that the EDA approve a resolution authorizing an internal ( interfund) loan to a future TIF district and set the terms for reimbursement of the qualified TIF costs to be repaid with tax increments from the newly created TIF district. The source of funding for the demolition will be identified in the resolution, as well as other required terms. Recommendation Staff recommends approval of the Resolutions Attachments • Ehlers Blight memo • LHB Blight Report • Resolution approving Blight Report • Ehlers memo • Resolution Interfund Loan for Demo • Ehlers memo • Resolution Interfund Loan for Admin Costs NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY CITY OF NEW HOPE COUNTY OF HENNEPIN STATE OF MINNESOTA Resolution No. 2013- A RESOLUTION FINDING THE EXISTENCE OF IMPROVEMENTS AND STRUCTURALLY SUBSTANDARD BUILDINGS ON REAL PROPERTY THAT MAY BE INCLUDED IN A TAX INCREMENT DISTRICT, PURSUANT TO MINNESOTA STATUTES, SECTION 469.174, SUBDIVISION 10(d) WHEREAS, the New Hope Economic Development Authority (the "Authority ") has acquired certain real property located within the City of New Hope (the "City "), which real property is referred to herein as the "Property" and is legally described on the attached Exhibit A; and WHEREAS, the Property contains buildings that the Authority believes qualify as "structurally substandard" within the meaning of Minnesota Statutes, section 469.174, subd. 10, of the Minnesota tax increment financing laws; and WHEREAS, the Authority intends to undertake or assist in the redevelopment of the Property and, in this regard, has determined that it may create a new tax increment financing district to encompass the Property and to provide a .funding source for the redevelopment of the Property; and WHEREAS, the Authority desires to demolish or cause to be demolished certain buildings and improvements located on the Property prior to the time that a new tax increment district can be created; and WHEREAS, Minnesota Statutes, section 469.174, subd. 10(d), provides that a parcel of property on which a structurally substandard building has been demolished by an authority or by a developer under a development agreement with the authority may still be treated as if occupied by such building for purposes of creating a tax increment financing district if prior to the demolition the authority finds by resolution that the parcel was occupied by a structurally substandard building and that the authority intends to include the parcel in a tax increment district; and WHEREAS, the Authority by this resolution intends to preserve its ability to deem the Property as occupied by structurally substandard buildings for purposes of including the Property in a future tax increment financing district. NOW, THEREFORE, be it hereby resolved by the Board of Commissioners of the Authority as follows: 1. Based upon all of the information available to the Authority, including reports of the Authority's staff, including City building officials and the report dated as of January 9, 2013 prepared by LHB, Inc., on behalf of the City and Authority, the Authority hereby finds that each parcel of the Property is occupied by a structurally substandard building for the following reasons: Memo Too Kirk McDonald — EDA Executive Director From: Stacie Kvilvang Date: January 9, 2013 Subject: Blight Analysis and Demolition of Kmart and Bank Building The City /EDA hired LHB to complete the required inspection of the above referenced properties to determine if they would meet the substandard /blight test for inclusion in a future redevelopment district. As you recall, in order for a building to be considered substandard, the cost to bring the building up to current code requirements must be more than 15% of the cost to construct the same building today. LHB completed the inspections of the buildings on December 27, 2012 and found both structures to be substandard. The percentage replacement cost for the Kmart building was 16.5% and the bank building was 19.2% (see attached report). Since the City /EDA would like to tear these buildings down prior to creation of the TIF district, the EDA must pass a resolution stating that the two parcels are occupied by substandard buildings and that after demolition the EDA intends to include the parcels within a TIF district. The EDA will have three (3) years from the date of the resolution to create a TIF district on those two (2) parcels and an additional outlot parcel (total of 3 parcels). Please contact me at 651 - 697 -8506 with any questions. w\�wv,ehlers- inacom EHLERS LEADERS IN PUBLIC FINANCE !Minnesota phone 651- 697 -8500 3060 Centre Pointe Drive Offices also in Wisconsin and Illinois fax 651- 697 -8555 Roseville, MN 55113-1122 toll free 800 - 552 -1171 250 Third Avenue North, Suite 450 0 Minneapolis, Minnesota 55401 612.338.2029 Fax 612.338.2088 www.LHBcorp.com January 9, 2013 Jeff Sargent Planning and Development City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 TIF ANALYSIS FOR THE KMART SITE LHB was hired to inspect the former Kmart store and bank building at 4200 and 4300 Xylon Avenue North in New Hope, MN in order to determine if they meet the definition of "Substandard" as defined by Minnesota Statutes, Section 469.174, subdivision 10. The buildings could potentially be included in a future Redevelopment TIF District, so will need to be compliant with all of the statutes pertaining to a Redevelopment District. CONCLUSION After inspecting and evaluating the buildings within the potential TIF District on December 27, 2012, and applying current statutory criteria for a Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that both buildings qualify as substandard. The remainder of this letter and attachments describe our process and findings in detail. PART 2 — MINNESOTA STATUTE 469.174, SUBDIVISION 10 REQUIREMENTS The properties were inspected in accordance with the following requirements under Minnesota Statutes, Section 469.174, Subdivision 10(c), which states: Interior Inspection "The municipality may not make such determination [that the building is structurally substandard] without an interior inspection of the property..." Exterior Inspection and Other Means "An interior inspection of the property is not required, if the municipality finds that (1) the municipality or authority is unable to gain access to the property after using its best efforts to obtain permission from the party that owns or controls the property; and (2) the evidence otherwise supports a reasonable conclusion that the building is structurally substandard." Documentation "Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained under section 469.175, subdivision 3(1)." Duluth, MN Minneapolis, MN Kmart site TIF Analysis Page 2 of 5 January 9, 2013 Qualification Requirements Minnesota Statutes, Section 469.174, Subdivision 10 (a) (1) requires two tests for occupied parcels: A. Coverage Test ... "parcels consisting of 70 percent of the area of the district are occupied by buildings, streets, utilities, or paved or gravel parking lots" The coverage required by the parcel to be considered occupied is defined under Minnesota Statutes, Section 469.174, Subdivision 10(e), which states: "For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities, or paved or gravel parking lots unless 15 percent of the area of the parcel contains building, streets, utilities, or paved or gravel parking lots." The Kmart property includes three parcels, (labeled A, B and C on the site diagram below). Parcel A is 545,415 sf with approximately 98 percent of the square footage occupied by buildings, and parking lots. Parcel B is 27,143 sf and is 97 percent covered. Parcel C is 11,600 sf and 99 percent covered. Findings: More than 15 percent of parcel A, B and C is occupied by buildings, streets, utilities, or paved or gravel parking lots (see attached site diagram). Site Diagram Kmart site TIF Analysis Page 3 of 5 January 9, 2013 B. Condition of Buildings Test ... "and more than 50 percent of the buildings, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance;" Structurally substandard is defined under Minnesota Statutes, Section 469.174, Subdivision 10(b), which states: "For purposes of this subdivision, `structurally substandard' shall mean containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." a. We do not count energy code deficiencies toward the thresholds required by Minnesota Statutes, Section 469.174, Subdivision 10(b)) defined as "structurally substandard ", due to concerns expressed by the State of Minnesota Court of Appeals in the Walser Auto Sales, Inc. vs. City of Richfield case filed November 13, 2001. Findings: Both buildings exceed the criteria required to be determined a substandard building. 2. Buildings are not eligible to be considered structurally substandard unless they meet certain additional criteria, as set forth in Subdivision 10(c) which states: "A building is not structurally substandard if it is in compliance with the building code applicable to new buildings or could be modified to satisfy the building code at a cost of less than 15 percent of the cost of constructing a new structure of the same square footage and type on the site. The municipality may find that a building is not disqualified as structurally substandard under the preceding sentence on the basis of reasonably available evidence, such as the size, type, and age of the building, the average cost of plumbing, electrical, or structural repairs, or other similar reliable evidence." "Items of evidence that support such a conclusion [that the building is not disqualified] include recent fire or police inspections, on -site property appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence." LHB counts energy code deficiencies toward the 15 percent code threshold required by Minnesota Statutes, Section 469.174, Subdivision 10(c)) for the following reasons: • The Minnesota energy code is one of ten building code areas highlighted by the Minnesota Department of Labor and Industry website where minimum construction standards are required by law. • The index page of the 2007 Minnesota Building Code lists the Minnesota Energy Code as a "Required Enforcement" area compared to an additional list of "Optional Enforcement" chapters. The Senior Building Code Representative for the Construction Codes and Licensing Division of the Minnesota Department of Labor and Industry Kmart site TIF Analysis Page 4 of 5 January 9, 2013 confirmed that the Minnesota Energy Code is being enforced throughout the State of Minnesota. • In a January 2002 report to the Minnesota Legislature, the Management Analysis Division of the Minnesota Department of Administration confirmed that the construction cost of new buildings complying with the Minnesota Energy Code is higher than buildings built prior to the enactment of the code. Proper TIF analysis requires a comparison between the replacement value of a new building built under current code standards with the repairs that would be necessary to bring the existing building up to current code standards. In order for an equal comparison to be made, all applicable code chapters should be applied to both scenarios. Since current construction estimating software automatically applies the construction cost of complying with the Minnesota Energy Code, energy code deficiencies should also be identified in the existing structures. Findings: Both buildings exceed the building code deficiency criteria required to be determined substandard, with over 15 percent of the replacement value required to modify building code deficiencies. TEAM CREDENTIALS Michael A. Fischer, AIA LEER AP - Project Principal/TIFAnalyst Michael has twenty -four years of architectural experience as project principal, project manager, project designer and project architect on municipal planning, educational, commercial and governmental projects. He is a Senior Vice President at LHB and currently leads the Minneapolis office. Michael completed a two -year Bush Fellowship at the Massachusetts Institute of Technology in 1999, earning Masters Degrees in City Planning and Real Estate Development. Michael has served on over 35 committees, boards and community task forces, including a term as City Council President and Chair of the Duluth/Superior Metropolitan Planning organization. He is currently a Planning Commisioner in Edina, Minnesota. Michael was one of four architects in the country to receive the National "Young Architects Citation" from the American Institute of Architects in 1997. Ben Trousdale, AIA - Project Manager/Inspector Ben is a project architect in LHB's Minneapolis office with 20 years of experience working on a variety of multi - family housing and commercial projects. He has extensive skills in creating quality construction documents that convey a building's fundamentals and unique design details. His responsibilities include project management, code analysis, and overseeing document production. Ben is a licensed architect in Minnesota and is involved with AIA activities including Search for Shelter charrettes. Kmart site TIF Analysis Page 5 of 5 January 9, 2013 We have attached building code /condition deficiency reports, Replacement Cost worksheets, Code - related repair cost worksheets, and thumbnail photo sheets for each building, for inclusion in your council resolution. Please contact me at (612) 752 -6920 if you have any questions. _1► MICHAEL A. FISCHER, AIA, LEED AP SENIOR VICE PRESIDENT M: \12Proj \120684 \400 Design \406 Reports \TIF \Final Report\New Hope Kmart and Bank Building Letter of Finding 01-09 - 13.doc NEW HOPE, MINNESOTA TIF ANALYSIS CODE /CONDITION DEFICIENCY REPORT January 9, 2013 Building Name & Address: Parcel A - Former Kmart, 4300 Xylon Av N Inspection Date(s) &. Time(s): December 27, 2012; 2:30pm Inspection Type: Interior /Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Building Code deficiencies total more than 15% of replacement cost. - Substantial renovation is required to correct Conditions found. Estimated Replacement Cost: $10,216,191 Estimated Cost to Correct Building Code Deficiencies: $1,680,898 Percentage of Replacement Cost: 16.5% Description of Condition Deficiencies Minnesota Statutes, Section 469.174, Subdivision 10, states that a building is Structurally Substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." A. Defects in Structural Elements 1. The existing gutters and downspouts need to be replaced. 2. The building is experiencing water intrusion in multiple locations causing damage to walls. B. Combination of Deficiencies 1. Essential Utilities and Facilities a. Mechanical system is inadequate. b. Freeze damage to hydronic heat pipes in storage area of smaller retail area. c. The existing bathrooms are too small to meet ADA requirements. 2. Light and Ventilation a. Install a new ventilation system. b. Replace T -8 light fixtures. c. Light fixtures are dated, in some disrepair and unsightly. Fire Protection /Adequate Egress a. Stairs to second floor office areas in both retail spaces do not meet code. Risers exceed maximum height allowed and treads are less than minimum depth allowed. b. Three exterior doors require stoops so that landings on both sides of the door are at the same elevation. 4. Layout and Condition of Interior Partitions /Materials a. VCT floor is dirty, worn, scratched and cracked throughout and heaving in a few places. b. Water damaged ceiling the in employee women's locker room. c. Vandalized or damaged walls in former in -store fast food and snack area. d. Ceiling the in retail area a patch work of various replacement styles and textures. e. Water damage to ceiling tiles in smaller retail area. f. Ad hoc expanding foam insulation repair at perimeter of secondary retail area. 5. Exterior Construction a. Gutters and downspouts are damaged and need replacement. b. Concrete masonry badly water damaged. c. Broken windows in former garden sales area. d. Storefront windows are not thermally broken/ e. Storefront window seals are failing. f. Hollow metal door and door frames rusting away. g. Horizontal and vertical cracks in concrete masonry throughout. h. Sealant at control joints in concrete masonry has failed in most places. i. Sealant at joints between building and windows and doors has failed. j. Sealant at joints between building and adjacent pavement has failed. k. One of the spandrel panels in the storefront has been punctured. 1. Two aluminum covers are missing from storefront vertical members. m. Roofing pitch from ad hoc repair is dripping down the sides of the walls. n. Steel construction components are rusting. Overview of Condition Deficiencies The former Kmart has defects in structural elements including most of the exterior envelope, allowing water intrusion into the building. In addition, the building has deficiencies in all five categories listed above, including serious deficiencies in the mechanical system and accessibility. The building is currently vacant and suffers from a severe lack of routine maintenance, modernization and is victim of general neglect inside and out that are emblematic of a failing and cash - strapped business. In total, the defects and deficiencies in this building are of sufficient total significance to justify substantial renovation or clearance. Description of Code Deficiencies I . Door thresholds at smaller retail space are not accessible. 2. Roof edge and gutters are leaking causing water and freeze -thaw damage to concrete masonry walls. 3. Bathrooms do not meet accessibility requirements (IBC Chapter 11). Replace existing bathrooms with new accessible bathrooms. 4. Storage mezzanines constructed out of combustible material where not allowed in a building required to have non - combustible construction. 5. Mezzanine storage stairs and guards do not meet building code. 6. Stairs to second floor office areas do not meet building code. 7. Second floor office areas of both retail spaces are not accessible. 8. Doors in employee locker rooms, bathrooms and other spaces are too narrow for accessible routes to these areas. 9. Mechanical system is none functional, old and energy inefficient. 10. No ships ladder or stair to roof top mechanical equipment. Building Type: Location: Story Count: Story Height (L.F.): Floor Area (S.F.): Labor Type: Basement included: Data Release: Cost Per Square Foot: Building Cost: Concrete Block / Steel Joists MINNEAPOLIS, MN 1 16 115,492 OPN No Year 2012 Quarter 4 $88.46 $10,216,191 I ' _. L T — 4" iCo_ts are dorlvc-d from a building modeel with basic comp --tx. Scup differences and ma(;ct conditions can cause costs to vary cipific"'tly. A1010 Standard Foundations $0.94 $108,562 KSF, 12" deep x 24" wide 5' - 6" square x 13" deep A1030 Slab on Grade $5.41 $624,812 Slab on grade, 4" thick, non industrial, reinforced A2010 Basement Excavation $0.32 $36,957 site storage A2020 Basement Walls $0.99 $114,337 thick MEMINEWEEMM 81010 Floor Construction $0.45 $51,971 column, 2 hour rating, 18 PLF B1020 Roof Construction $10.96 $1,265,792 28" deep, 40 PSF superimposed load, 62 PSF total load 28" deep, 40 PSF superimposed load, 62 PSF total load, add for column 82010 Exterior Wails $3.34 $385,743 8x8x16, reinforced, vertical #5 @16 ", grouted 82020 Exterior Windows $1.36 $157,069 1 intermediate horizontal Glazing panel, plate glass, 3/8" thick, tinted B2030 Exterior Doors • $0.42 $48,507 opening 0" opening 83010 Roof Coverings $5.52 $637,516 mopped Insulation, rigid, roof deck, composite with 2" EPS, 1" perlite Roof edges, aluminum, duranodic, .050" thick, 6" face Gravel stop, aluminum, extruded, 4 ", mill finish, .050" thick 83020 Roof Openings, $0.06 $6,930 Square Foot Cost Estimate Report D2010 steel, 165 Ibs $1.57 $181,322 operator Urinal, vitreous china, wall hung C1010 Partitions $1.94 $224,054 gypsum board, 2 -1/2" @ 24 ", same opposite face, no insulation 1/2" fire ratedgypsum board, taped & finished, painted on metal furring C1020 Interior Doors $2.10 $242,533 3' -0" x 7' -0" x 1 -3/8" C3010 Wall Finishes $0.30 $34,648 primer & 2 coats C3020 Floor Finishes $14.27 $1,648,071 Carpet tile, nylon, fusion bonded, 18" x 18" or 24" x 24 ", 35 oz D3050 Tile, ceramic natural clay, marble, synthetic 12" x 12" x 5/8" $7.50 $866,190 C3030 Ceiling Finishes $4.44 $512,784 D4010 channel grid, adhesive back support $3.11 $359,180 D2010 Plumbing Fixtures $1.57 $181,322 Water closet, vitreous china, bowl only with flush valve, wall hung Urinal, vitreous china, wall hung Lavatory w /trim, vanity top, PE on Cl, 20" x 18" Service sink w /trim, PE on Cl,wall hung w /rim guard, 24" x 20" Water cooler, electric, wall hung, dual height, 14.3 GPH D2020 Domestic Water Distribution $0.36 $41,577 Gas fired water heater, commercial, 100< F rise, 500 MBH input, 480 GPH D2040 Rain Water Drainage $0.73 $84,309 Roof drain, Cl, soil,single hub, 6" diam, 10' high Roof drain, CI, soil,single hub, 6" diam, for each additional foot add Roof drain, Cl, soil,single hub, 8" diam, for each additional foot add D3050 Terminal & Package Units $7.50 $866,190 ton D4010 Sprinklers $3.11 $359,180 Wet pipe sprinkler systems, steel, light hazard, 1 floor, 50,000 SF D5010 Electrical Service /Distribution $0.89 $102,788 phase, 4 wire, 120/208 V, 1200 A Feeder installation 600 V, including RGS conduit and XHHW wire, 1200 A Switchgear installation, incl switchboard, panels & circuit breaker, 1200 A D5020 Lighting and Branch Wiring $8.68 $1,002,471 with transformer Miscellaneous power, to .5 watts Central air conditioning power, 3 watts fixtures @32watt per 1000 SF D5030 Communications and Security $1.22 $140,900 detectors, includes outlets, boxes, conduit and wire Fire alarm command center, addressable with voice, excl. wire & conduit Internet wiring, 2 data /voice outlets per 1000 S.F. D5090 Other Electrical Systems $0.04 $4,620 gas /gasoline operated, 3 phase, 4 wire, 277/480 V, 7.5 kW E1 090 Other Equipment $ 0 . 00 1 Sub7otal Contractor Fees (General Conditions,Overhead,Profit) Architectural Fees 100% $76.92 $8,883,645 10% $7.69 $888,364 5% $3.85 $444,182 User Fees , yrr��ys��aa Yty � 0 1 01 rr�� $y i New Hope, Minnesota Proposed TIF Project No. 120684 Former Kmart Department Store Site PID 18- 118 -21 -11 -0013, 4300 Xylon Av. N. Interior doors to employee work areas, employee locker rooms, employee restrooms are not accessible. Demo existing doors and frames $ 100.00 Each Unit $ 800.00 Enlarge wall openings and install new doors and frames Code Related Cost Items 1,800.00 Unit Cost Units Quantity Patch and paint Total Handicap Items Each 8 $ 640.00 Provide accessible entrances at main store entrances Replace toilets to provide handicap access for each sex - threshold no greater than 1/2" high Build (2) new acccessible toilet rooms W1 compliant number of accessories and fixtures Remove existing aluminum entrance doors $ 250.00 Partial removal exisitng toilet rooms $ 500.00 Lump 8 $ 4,000.00 8 water closets $ 2,500.00 each 8 $ 20,000.00 8lays $ 1,750.00 each 2 $ 3,500.00 4 Urinal $ 1,750.00 each 1 $ 1,750.00 8 sets of grab bars $ 400.00 each 2 $ 800.00 8 sets toilet room accessories $ 500.00 each 2 $ 1,000.00 Interior room reconstruction (doors, partitions,finishes) $ 60.00 SF 960 $ 57,600.00 Provide 1 handicapped parking space Stairs do not provide for proper handrail extension at top and bottom of stair. IBC 1003.3.3.3.11.5. Remove existing wood stairs. Add striping at main entry door and existing bituminous parking area $ 50.00 lump 10.00 $ 500.00 Parking requires signage MN 1341.0428 $ 150.00 lump 10.00 $ 1,500.00 Interior configuration does not provide for accessible route. Interior handicap access route not Provide new stair tread coverings $ 56.00 Riser provided through out building. MN 1341.0405, Item E $ 12,544.00 Non - compliant guards at mezzanine storage Add Elevator to 2nd floor office area both stores 2 - Elevator Pit and footings $ 8,000.00 Lump 2 $ 16,000.00 2 - 12" CMU Elevator Shaft walls $ 13.00 SF 2,432 $ 31,616.00 2 - Elevator Equipment (2 stop) $ 44,575.00 Lump 2 $ 89,150.00 2 - Elevator Equipment Room (Assume 64 SF) $ 30.00 SF 128 $ 3,840.00 2 - Power 100 amp 3 phase Safety Switch $ 520.00 Lump 2 $ 1,040.00 Circuit Breaker $ 795.00 Lump 2 $ 1,590.00 Motor Starter $ 450.00 Lump 2 $ 900.00 Wire and Conduit Feeder (150 feet assumed) $ 31.00 LF 300 $ 9,300.00 Fire Alarm Connections $ 1,000.00 lump 2 $ 2,000.00 Emergency Phone Connection $ 12.00 LF 300 $ 3,600.00 Interior doors to employee work areas, employee locker rooms, employee restrooms are not accessible. Demo existing doors and frames $ 100.00 Each 8 $ 800.00 Enlarge wall openings and install new doors and frames $ 1,800.00 Each 8 $ 14,400.00 Patch and paint $ 80.00 Each 8 $ 640.00 Provide accessible entrances at main store entrances - threshold no greater than 1/2" high Remove existing aluminum entrance doors $ 250.00 Each 4.00 $ 1,000.00 Install new pairs of aluminum entrance doors $ 2,450.00 Each 4.00 $ 9,800.00 Fire Seperation Items IBC 2406.2 - Provide fire rated safety glazing at storage areas and retail store. Fire rated hollow metal assembly with wire glass $ 80.00 SF 60.00 $ 5,050.00 Exiting Non - compliant exit stairs to storage mezzanines (12 thus) Stair riser exceeds maximum rise of 7 ". IBC1009.3 Stair tread less than minimum 11". IBC 1009.3 Stairs do not provide for proper handrail extension at top and bottom of stair. IBC 1003.3.3.3.11.5. Remove existing wood stairs. $ 150.00 Each 14 $ 2,100.00 Flight of metal stairs constructed for use in commercial application $ 450.00 Riser 224 $ 100,800.00 Provide new railings at each location 32 feet per stair $ 50.00 Foot 448 $ 22,400.00 Provide new stair tread coverings $ 56.00 Riser 224 $ 12,544.00 Non - compliant guards at mezzanine storage New Hope TI F Page 1 of 2 LHB Project # 120684 New Hope, Minnesota Proposed TIF Project No. 120684 Former Kmart Department Store Site PID 18- 118 -21 -11 -0013, 4300 Xylon Av. N. Unit Code Related Cost Items Unit Cost Units Quantity Total Demolish existing guards $ 2.00 Foot 600 $ 1,200.00 Install new metal guards $ 50.00 Foot 600 $ 30,000.00 Non - compliant landings at exterior doors. Landing on exterior side is lower than door threshold and floor inside. Install stoop. Concrete stoop foundations 5' x 4' Excavation /Backfill $ 80.00 LF 30.00 $ 2,400.00 Strip Footings 12" x 18" $ 400.00 CY 2.00 $ 800.00 8" CMU foundation walls grout solid $ 7.00 SF 120.00 $ 840.00 Reinforced Concrete stoop on metal form deck $ 400.00 CY 2.00 $ 800.00 Fire Protection< IBC Chapter 6 - Type of Construction and Occupancy Building area and occupancy require non - combustible construction - storage mezzanines are constructed of wood Demo and replace storage mezzanines with steel or other non - combustible construction Demo wood mezzanines $ 0.95 SF 16,000 $ 15,200.00 Rebuild mezzanines of light gauge steel framing, metal $ 8.80 SF 16,000 $ 140,800.00 & concrete deck Roof Construction Remove existing gutters and downspouts and replace with new. Existing are leaking a causing water and freeze -thaw damage on CMU exteriors Demolish existing gutters and downspouts $1,650.00 Allow 1 $ 1,650.00 Install new gutters and downspouts $2.30 LF 960 $ 2,208.00 Re -flash roof edge to gutters $6.40 LF 960 $ 6,144.00 Exterior Envelope Construction Repair holes in CMU walls and heavily damaged CMU block Demo and replace CMU block $ 85.00 SF 1,920.00 $ 163,200.00 Replace broken glass in former garden shop area $ 50.00 SF 115.00 $ 5,750.00 Repair cracks in CMU and failed sealant at CMU expansion joints. Voids in walls penetrate directly into the interior of the building Remove existing sealant and install new sealant $ 19.20 LF 30.00 $ 576.00 Install sealant in cracks $ 17.80 LF 150.00 $ 2,670.00 Exterior insulation Mechanical - Electrical Replace non - functioning, dated and non -code compliant HVAC HVAC cost from replacement cost estimate $ 866,190.00 Lump 1 $ 866,190.00 Provide oil separator in garage spaces greater than 1,000 sf. MN 4715.1120 Oil_seperator $ 4,000.00 Each 4 $ 16,000.00 Install 150 feet of 4" piping, out and patch slab $ 35.00 LF 150 $ 5,250.00 Total Code Improvements $ 1,680,898.00 New Hope TIF Page 2 of 2 LHB Project # 120684 IMGP2724.JPG IMGP2725.JPG IMGP2729,JPG [MGP2730,JPG IMGP2734.JPG IMGP2735.JPG IMGP2726.JPG IMGP2731,JPG IMGP2736,JPG IMGP2732.JPG IMGP2733.JPG IMGP2747,JPG IMGP2748.JPG IMGP2779.JPG IMGP2780.JPG IMGP2784.JPG IMGP2785.JPG IMGP2761,JPG IMGP2762.JPG IMGP2763.JPG IMGP2786.JPG IMGP2787.JPG IMGP2788.JPG IMGP2789.JPG IMGP2790.JPG IMGP2791.JPG IMGP2792.JPG IMGP2793.JPG IMGP2794,JPG IMGP2795,JPG IMGP2796.JPG IMGP2797JPG IMGP2798.JPG IMGP2799.JPG IMGP2$00JPG IMGP2801,JPG IMGP2802.JPG IMGP2803.JPG IMGP2836,JPG IMGP2841.JPG IMGP2847.jPG IMGP2853,JPG [MGP2849.JPG IMGP2850.JPG IMGP2851.JPG IMGP2852.JPG IMGP2854,JPG IMGP2869.JPG IMGP2874.JPG IMGP2879.JPG IMGP2884.JPG IMGP2890,JPG IMGP2901,JPG IMGP2875.JPG IMGP2880.JPG IMGP2885.JPG IMGP2891 JPG IMGP2897,JPG IMGP2902.JPG IMGP2871.JPG IMGP2876.JPG IMGP2881.JPG IMGP2$87,JPG IMGP2898.JPG r"T g. IMGP2903.JPG JMGP2877.JPG IMGP2882.JPG IMGP2888,JPG IMGP2893.JPG IMGP2899.JPG IMGP2904,JPG IMGP2878,JPG IMGP2894 JPG IMGP2906.JPG IMGP291 1,JPG IMGP2907.JPG IMGP2912.JPG IMGP2916.JPG IMGP2917,JPC- . . . . . . . . . ..... aw tlu IMGP2925.JPG IMGP2926.JPG IMGP2927.JPG IMGP2929,JPG IMGP2930,JPG IMGP2934.JPG [MGP2935.JPG 1MGP2931JPG IMGP2932.JPG IMGP2933.JPG IMGP2936,JPG IMGP2937.JPG IMGP2938.JPG IMGP2941,JPG IMGP2942.JPG IMGP2944.JPG IMGP2945,JPG IMGP2946,JPG IMGP2947,JPG IMGP2953.JPG IMGP2959.JPG IMGP2949.JPG IMGP2955,JPG IMGP2960.JPG IMGP2950,JPG IMGP2956.JPG IMGP296I.JPG IMGP2951.JPG IMGP2957.JPG IMGP2962.JPG IMGP2958,JPG IMGP2963.JPG NEW HOPE, MINNESOTA TIF ANALYSIS CODE /CONDITION DEFICIENCY REPORT January 9, 2013 Building Name & Address: Parcel B - Former Auto Bank, 4200 Xylon Av N Inspection Date(s) & Time(s): December 27, 2012; 1:30pm Inspection Type: Interior /Exterior Summary of Deficiencies: It is our professional opinion that this building is Substandard because: - Building Code deficiencies total more than 15% of replacement cost. - Substantial renovation is required to correct Conditions found. Estimated Replacement Cost: $315,745 Estimated Cost to Correct Building Code Deficiencies: $60,611 Percentage of Replacement Cost: 19.2% Description of Condition Deficiencies Minnesota Statutes, Section 469.174, Subdivision 10, states that a building is Structurally Substandard if it contains "defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors, which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance." A. Defects in Structural Elements 1. Gypsum board behind vinyl wall covering of exterior walls is infested with mold. B. Combination of Deficiencies 1. Essential Utilities and Facilities a. Mechanical system ducts run underground and are not adequately protected from moisture intrusion. b. The existing bathrooms are too small to meet ADA requirements. c. Water service is disconnected. 2. Light and Ventilation a. Install a new ventilation system. b. Crack diffuser in ceiling light in lobby. 3. Layout and Condition of Interior Partitions/Materials a. Carpet is somewhat worn and rather dirty. b. Some ceiling tiles are missing and /or misplaced. c. Mold behind vinyl wall covering of exterior walls. d. Broken teller window at walk -up lobby. 4. Exterior Construction a. Brick repair required at columns supporting drive - through canopy. b. Fascia and soffits in need of repair, paint. c. Aluminum entrance door finish is scratched and worn at bottom rail. d. Aluminum entrance door closer arm is disconnected. Overview of Condition Deficiencies The primary deficiencies of this former auto bank are accessibility and moisture related. Work areas and customer service areas in the walk -up lobby are not accessible and do not meet ADA. The HVAC air distribution is through underground ducts. Construction methodology for a building of this nature at the time of construction did not include adequate protection of the ducts from ground moisture intrusion leading to mold growth in the dust and dirt that accumulates there. The building exterior walls are finished with vinyl wall covering. A pealed back section of wall covering reveals extensive mold over the entire area. Vinyl wall covering has a well - deserved reputation for trapping moisture in the wall that leads to mold growth on the paper surface of the gypsum board. In total, the defects and deficiencies in this building are of sufficient total significance to justify substantial renovation or clearance. Description of Code Deficiencies 1. Underground ducts not built to resist moisture intrusion. Install a new ventilation system. 2. Bathrooms do not meet accessibility requirements (IBC Chapter 11). Replace existing bathrooms with new accessible bathrooms. 3. Employee kitchen is not accessible. 4. Service window and counter are not at an accessible height. 5. Lobby door threshold greater than ' / ". 6. There is no water service to the building. Building Type: Bank with Face Brick with Concrete up / Steel Frame Block Back - $7,074 Location: MINNEAPOLIS, MN Story Count: 1 .� .�'sk . i �_"•: ,; _ _ . _ r Story Height (L.F.): 12 A1030 Slab on Grade Floor Area (S. F.): 1,203 Slab on grade, 4" thick, non industrial, reinforced A2010 Labor Type: OPN $349 Basement Included: No A2020 Data Release: Year 2012 Quarter 4 costs are derived frorn a b wilding rrodeI with basir.comr Cost Per Square Foot: $ 262.46 �Scnpadtk,enco ^s and m, arhtoornet?eons can eaus art> to vaysUniticantly. B1020 Building Cost: $315,745 A1010 Standard Foundations $5.88 $7,074 KSF, 12" deep x 24" wide 4'- 6" square'x 15" deep 5'- 6" square x 18" deep A1030 Slab on Grade $5.00 $6,015 Slab on grade, 4" thick, non industrial, reinforced A2010 Basement Excavation $0.29 $349 site storage A2020 Basement Walls $9.71 $11,681 thick B1020 M Roof Construction $9.71 $11,681 20" deep, 40 PSF superimposed load, 60 PSF total load 20" deep, 40 PSF superimposed load, 60 PSF total load, add for column B2010 Exterior Walls $34.12 $41,046 perlite core fill B2020 Exterior Windows $9.71 $11,681 Windows, aluminum, sliding, insulated glass, 5'x 3' 82030 Exterior Doors $1.47 $1,768 hardware, 6' -0" x 7' -0" opening 0" opening B3010 Roof Coverings $9.41 $11,320 mopped Insulation, rigid, roof deck, composite with 2" EPS, 1" perlite Roof edges, aluminum, duranodic, .050" thick, 6" face Flashing, aluminum, no backing sides, .019" Square Foot Cost Estimate Report Gravel stop, aluminum, extruded, 4 ", mill finish, .050" thick 4 C1010 Partitions $6.76 $8,132 OC framing, same opposite face, no insulation $1,768 5/8" gypsum board, taped & finished, painted on metal furring C1020 Interior Doors $5.88 $7,074 3' -0" x 7' -0" x 1 -3/8" D3050 Terminal & Package Units C3010 Wall Finishes' $1.47 $1,768 primer & 2 coats Vinyl wall covering, fabric back, medium weight Electrical Service /Distribution $6.18 C3020 Floor Finishes $5.29 $6,364 Carpet tile, nylon, fusion bonded, 18" x 18" or 24" x 24 ", 35 oz Vinyl, composition tile, maximum Gas fired water heater, residential, 100< F rise, 30 gal tank, 32 GPH D2040 Rain Water Drainage $1.47 $1,768 Roof drain, DWV PVC, 4" diam, diam, 10' high Roof drain, DWV PVC, 4" diam, for each additional foot add D3050 Terminal & Package Units $11.76 $14,147 ton D5010 Electrical Service /Distribution $6.18 $7,435 phase, 4 wire, 120/208 V, 200 A Feeder installation 600 V, including RGS conduit and XHHW wire, 200 A Switchgear installation, incl switchboard, panels & circuit breaker, 400 A D5020 Lighting and Branch Wiring $9.41 $11,320 Receptacles incl plate, box, conduit, wire, 5 per 1000 SF, .6 watts per SF Wall switches, 2.0 per 1000 SF Miscellaneous power, 1 watt Central air conditioning power, 6 watts fixtures @32watt per 1000 SF D5030 Communications and Security $12.65 $15,218 Telephone wiring for offices & laboratories, 8 jacks /MSF detectors, includes outlets, boxes, conduit and wire conduit wire, master TV antenna systems, 12 outlets Patient monitoring closed circuit TV E1090 Other Equipment $41.47 $49,888 weighs 750 lb 1.00 -Bank equipment, pneumatic tube systems, complete, 2 lane drive -up 1.00 -Bank equipment, night depository, with chest, min excl. glass, min 1.00- Counters, for banks, frontal only, complete with steel undercounter camera stations, add (camera & monitor) 2.00 - Teller window, bank equipment, bullet resistant, 44" x 60" F1040 Special Facilities $12.94 $15,567 Security vault door, Class III, 9R, 3' wide, 10" thick, minimum MEMEMEMMMEW SubTotal 100% $228.23 $274,561 Contractor Fees (General Conditions,Overhead,Profit) 10% $22.82 $27,456 Architectural Fees 5% $11.41 $13,728 User Fees 0% $0.00 $0 MMEMMMMM New Hope, Minnesota Proposed TIF Project No. 120684 Former Auto Bank PID 18-118-21-11-0012,4200 Xylon Av. N. Unit Code Related Cost Items Unit Cost Units Quantity Total Handicap Items Replace toilets to provide handicap access for each sex Build (2) new accoessible toilet rooms W/ compliant number of accessories and fixtures Remove exisitng toilet rooms $ 1,750.00 Lump 1 $ 1,750.00 2 water closets $ 2,500.00 each 2 $ 5,000.00 2lays $ 1,750.00 each 2 $ 3,500.00 1 Urinal $ 1,750.00 each 1 $ 1,750.00 2 sets of grab bars $ 400.00 each 2 $ 800.00 2 sets toilet room accessories $ 500.00 each 2 $ 1,000.00 Interior room reconstruction (doors, partitions, finishes) $ 60.00 SF 120 $ 7,200.00 Reinstall toilet Room Ventilation System $ 500.00 each 2 $ 1,000.00 Walk -in lobby teller window not at accessible height Demolish 1 teller window & service counter $ 300.00 Allow 1 $ 300.00 Reconfigure brick wall for adjusted teller window height $ 80.00 HR 16 $ 1,280.00 Install new teller window ation $ 7,200.00 Each 1 $ 7,200.00 Install new service counter at accessible height $ 64.00 LF 10 $ 640.00 Lower transfer door $ 500.00 Allow 1 $ 500.00 Employee kitchen not accessible Demolish existing base cabinets, counter and sink $ 200.00 Allow 1 $ 200.00 Install new base cabinets, counter and sink $ 240.00 LF 6 $ 1,440.00 Wall Construction Gypsum board behind vinyl covering and back of vinyl wall covering saturated with mold. Demolish gypsum board and replace with new Demolish and dispose of gypsum board & insulation $ 0.65 SF 1,260 $ 819.00 Remove suspended ceiling $ 1.00 Lump 800 $ 800.00 Install new fiberglass insulation $ 1.65 SF 1,260 $ 2,079.00 Install new vapor barrier $ 0.28 SF 1,260 $ 352.80 Install new gypsum board $ 2.05 SF 1,260 $ 2,583.00 Paint $ 0.65 SF 1,260 $ 819.00 Reinstallsuspended ceiling $ 1.35 SF 1,000 $ 1,350.00 Mechanical- Electrical Building does not have water service Install water meter $ 750.00 Lump 1 $ 750.00 Test water lines $ 450.00 Lump 1 $ 450.00 Sanitize water lines $ 450.00 Lump 1 $ 450.00 Underground HVAC distribution system not adequately protected from ground moisture Demo, abandon and cap underground ducts $ 1,200.00 Lump 1 $ 1,200.00 Install new HVAC and air distribution in ceiling $ 12.80 SF 1,203 $ 15,398.40 Total Code Improvements $ 60,611.20 New Hope TIF Page 1 of 1 LHB Project # 120684 IMGP2666,JPG IMGP2677.JPG IMGP2684,JPG IMGP2685.JPG IMGP2691.JPG IMGP2692.JPG IMGP2696.JPG IMGP2697.JPG IMGP2702,JPG IMGP2704.JPG IMGP2681.JPG IMGP2687,JPG IMGP2688.JPG IMGP2693.JPG IMGP2694.JPG IMGP2699.JPG IMGP2700.JPG IMGP2676,JPG IMGP2689,JPG IMGP2695,JPG IMGP2701.JPG IMGP2707.JPG ix IMGP2679.JPG IMGP2681.JPG IMGP2687,JPG IMGP2688.JPG IMGP2693.JPG IMGP2694.JPG IMGP2699.JPG IMGP2700.JPG IMGP2676,JPG IMGP2689,JPG IMGP2695,JPG IMGP2701.JPG IMGP2707.JPG IMGP2708.JPG IMGP2709.JPG IMGP2711.JPG IMGP2714.JPG IMGP2715.JPG IMGP2716.JPG IMGP2712.JPG IMGP2713.JPG IMGP2723,JPG Memo To. Kirk McDonald — EDA Executive Director From: Stacie Kvilvang Date: January 9, 2013 Subject: Interfund Loan Resolution -- Demolition of Kmart and Bank Building The City and EDA will be expending funds for the demolition of the above referenced properties. Since it may be a year or two before a TIF district is created for the redevelopment, the City and EDA will need to "front" these costs. If the City and EDA want to be reimbursed for these costs at a future date from TIF funds, then an interfund loan is required before the expenditure is made. Attached is a resolution authorizing an interfund loan of up to $200,000 from the City's /FDA's TIF District #86 -1 to the future TIF District (contract is for approximately $198,000). The City and EDA will reimburse TIF District #86 -1 for the above referenced costs (as they are advanced) in the current principal amount, together with interest at the rate of 4% per annum, when TIF funds become available. The interest rate is set at the statutory maximum and will not be adjusted annually. Completing this action provides the City and EDA with the most flexibility to reimburse itself in the future if and when a TIF district is created. Please contact me at 651- 697 -8506 with any questions. EHLERS LEADERS IN PUBLIC FINANCE m eh1ers-h, C0ITI Minnesota phone 651- 697 -8500 3060 Centre Pointe Drive Offices also in Wisconsin and Illinois fax 651- 697 -8555 Roseville, MN 55113 -1122 toil free 800 -552 -1171 NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY CITY OF NEW HOPE HENNEPIN COUNTY STATE OF MINNESOTA Commissioner introduced the following resolution and moved its adoption: RESOLUTION NO. 2013- RESOLUTION AUTHORIZING AN INTERFUND LOAN UP TO $200,000 FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH A TAX INCREMENT FINANCING DISTRICT THAT MAY BE CREATED BY THE CITY OF NEW HOPE AND THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY. BE IT RESOLVED by the Board of Commissioners (the 'Board ") of the New Hope Economic Development Authority (the "Authority "), as follows: Section 1. Background 1.01. The Authority and the City of New Hope (the "City ") intend to create in the future a tax increment financing district (the "TIF District ") in order to provide a funding source to assist in the redevelopment of certain real property in the City (the "Property "), which Property has been acquired by the Authority. 1.02. The Authority has determined to pay for certain costs identified in the TIF Plan consisting of demolition of buildings located on the Property, remediation of environmental conditions, other qualifying improvements and interest (collectively, the "Qualified Costs "), which costs may be financed on a temporary basis from Authority funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the Authority is authorized to advance money from the Authority's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. 1.04. The Authority intends to reimburse itself for the funds advanced for Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan "). Section 2. Terms of Interfund Loan 2.01. The Authority hereby authorizes the advance of up to $200,000 from TIF District No. 86 -1 or so much thereof as may be paid as Qualified Costs. The Authority shall be reimbursed for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. 2.02. Principal and interest ( "Payments ") on the Interfund Loan shall be paid semi - annually on each August 1 and February 1 (each a 'Payment Date "), commencing on the first Payment Date on which the Authority has Available Tax Increment (defined below), or on any other dates determined by the Authority's Executive Director, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the Executive Director, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the Authority by Hennepin County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1799, all inclusive, as amended. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre - payable in whole or in part at any time without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the Authority in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City and Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06. The Authority may amend the terms of this Interfund Loan at any time by resolution of the Board of Commissioners, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date This resolution is effective upon the date of its approval. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: January 14, 2013 ATTEST: President Executive Director Memo To: Kirk McDonald — EDA Executive Director From: Stacie Kvilvang Date: January 9, 2013 Subject: Interfund Loan Resolution —Administrative Costs The City and EDA will be expending funds for various administrative costs associated with the redevelopment of the Kmart and Bank Building site (blight analysis, Financial, legal and planning consultants, etc.). Since it may be a year or two before a TIF district is created for the redevelopment, the City and EDA will need to "front" these costs. If the City and EDA want to be reimbursed for these costs at a future date from TIF administrative funds, then an interfund loan is required before the expenditures are made. Attached is a "blanket' resolution authorizing an interfund loan of up to $100,000 from the City's /EDA's EDA Fund to the future TIF District. The reason for this blanket interfund loan resolution is so the City and EDA will not have to complete an interfund loan every time it is going to expend administrative costs for this project. The City and EDA will reimburse the EDA Fund for the above referenced costs (as they are advanced) in the current principal amount, together with interest at the rate of 4% per annum, when TIF funds become available. The interest rate is set at the statutory maximum and will not be adjusted annually. Completing this action provides the City and EDA with the most flexibility to reimburse itself in the future if and when a TIF district is created. Please contact me at 651- 697 -8506 with any questions. EHLERS LEADERS IN PUBLIC FINANCE wwov,ehlers- inc,com Minnesota phone 651 -697 -8500 3060 Centre Pointe Drive Offices also in Wisconsin and Illinois fax 651- 697 -8555 Roseville, MN 55113 -1122 toll free 800 -552 -1171 NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY CITY OF NEW HOPE HENNEPIN COUNTY STATE OF MINNESOTA Commissioner introduced the following resolution and moved its adoption: RESOLUTION NO. 2013- RESOLUTION AUTHORIZING AN INTERFUND LOAN UP TO $100,000 FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH A TAX INCREMENT FINANCING DISTRICT THAT MAY BE CREATED BY THE CITY OF NEW HOPE AND THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY. BE IT RESOLVED by the Board of Commissioners (the "Board ") of the New Hope Economic Development Authority (the "Authority "), as follows: Section 1. Background 1.01. The Authority and the City of New Hope (the "City ") intend to create in the future a tax increment financing district (the "TIF District ") in order to provide a funding source to assist in the redevelopment of certain real property in the City (the "Property "), which Property has been acquired by the Authority. 1.02. The Authority has determined to pay for certain costs identified in the TIF Plan consisting of demolition of buildings located on the Property, administrative expenses, including but not limited to fees of attorney and financial advisors, and interest (collectively, the "Qualified Costs "), which costs may be financed on a temporary basis from Authority funds available for such purposes. 1.03. Under Minnesota Statutes, Section 469.178, Subd. 7, the Authority is authorized to advance money from the Authority's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. 1.04. The Authority intends to reimburse itself for the funds advanced for Qualified Costs from tax increments derived from the TIF District in accordance with the terms of this resolution (which terms are referred to collectively as the "Interfund Loan "). Section 2. Terms of Interfund Loan 2.01. The Authority hereby authorizes the advance of up to $100,000 from funds of the Authority or so much thereof as may be paid as Qualified Costs. The Authority shall be reimbursed for such advances together with interest at the rate stated below. Interest accrues on the principal amount from the date of each advance. The maximum rate of interest permitted to be charged is limited to the greater of the rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the written agreement states that the maximum interest rate will fluctuate as the interest rates specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to time adjusted. The interest rate shall be 4% and will not fluctuate. 2.02. Principal and interest ( "Payments ") on the Interfund Loan shall be paid semi - annually on each August 1 and February 1 (each a "Payment Date "), commencing on the first Payment Date on which the Authority has Available Tax sIncrement (defined below), or on any other dates determined by the Authority's Executive Director, through the date of last receipt of tax increment from the TIF District. 2.03. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which shall mean, on each Payment Date, tax increment available after other obligations have been paid, or as determined by the Executive Director, generated in the preceding six (6) months with respect to the property within the TIF District and remitted to the Authority by Hennepin County, all in accordance with Minnesota Statutes, Sections 469.174 to 469.1799, all inclusive, as amended. Payments on this Interfund Loan may be subordinated to any outstanding or future bonds, notes or contracts secured in whole or in part with Available Tax Increment, and are on parity with any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 2.04. The principal sum and all accrued interest payable under this Interfund Loan are pre - payable in whole or in part at any time without premium or penalty. No partial prepayment shall affect the amount or timing of any other regular payment otherwise required to be made under this Interfund Loan. 2.05. This Interfund Loan is evidence of an internal borrowing by the Authority in accordance with Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely from Available Tax Increment pledged to the payment hereof under this resolution. This Interfund Loan and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the City and Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Interfund Loan or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Interfund Loan or other costs incident hereto. The Authority shall have no obligation to pay any principal amount of the Interfund Loan or accrued interest thereon, which may remain unpaid after the final Payment Date. 2.06, The Authority may amend the terms of this Interfund Loan at any time by resolution of the Board of Commissioners, including a determination to forgive the outstanding principal amount and accrued interest to the extent permissible under law. Section 3. Effective Date This resolution is effective upon the date of its approval. The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: January 14, 2013 ATTEST: President Executive Director