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IP #795.�Mor the full report on City Council agenda A ,k ackets lanning Commission , ?.genda packets. PROJECT NO. 795 Bass Lake Road Apartments Feasibility Study EDA Res. 06 -01 1/9/06 Resolution authorizing an interim agreement with PariPassu /Trio Development for the Bass Lake Road Apartments redevelopment project (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58 Avenue) (improvement project no. 795) Res. 06 -33 2/13/06 Resolution approving the application to Hennepin County's Transit Oriented Development grant program for funds to assist with the redevelopment of the Bass Lake Road Apartments site (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58 Avenue) (improvement project no. 795) Item 8.2 2/27/06 Update on the Bass Lake Road Apartments redevelopment project (8400 and 8420 Bass Lake Road and 8401, 841.1, and 8421 58 Avenue) (improvement project no. 795). EDA Res. 06 -02 3/27/06 Resolution authorizing the extension of the interim agreement with PariPassu /Trio Development for the redevelopment of the Bass Lake Road Apartments site (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58th Avenue) (improvement project no. 795) EDA Res. 06 -03 4/24/06 Resolution authorizing the second extension of the interim agreement with PariPassu /Trio Development for the redevelopment of the Bass Lake Road Apartments site (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58th Avenue) (improvement project no. 795) EDA Res. 06 -04 5/8/06 Resolution authorizing a third amendment to the interim agreement between the Economic Development Authority in and for the city of New Hope and PariPassu Development for the redevelopment of the Bass Lake Road Apartments site, which increases the budget for fees for Krass Monroe, P.A. (improvement project no. 795) Res. 06 -89 6/12/06 Resolution accepting PariPassu Development's withdrawal from the proposed Bass Lake Road Apartments redevelopment project (improvement project no. 795) Res. 06 -96 6/26/06 Resolution approving application to Metropolitan Council's Livable Communities Demonstration Account Development grant program for funds to assist with the redevelopment of the Bass Lake Road Apartments site (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58 Avenue) (improvement project no. 795) Item 8.3 9/25/06 Motion authorizing staff to obtain an appraisal of the Bass Lake Road Apartments (8420 Bass Lake Road and 8421, 8411, and 8401 58 Avenue) from Herman Appraisal Services, Inc. (improvement project no. 795) Item 8.6 02/26/07 Motion authorizing staff to coordinate with Insignia Development on an exclusive negotiation agreement for the Bass Lake Road Apartments site and authorizing the city attorney to negotiate the potential acquisition of the property (improvement project no. 767/795) EDA Res. 07 -01 5/14/07 Resolution authorizing an interim agreement with Insignia Development for the Bass Lake Road Apartments redevelopment project (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58t' Avenue) (improvement project no. 795) Also motion by Nolte /Stauner to approve counteroffer discussed at 5/7 w/s Item 8.2 5/29/07 Motion authorizing application to the Metropolitan Council's Livable Communities Demonstration Account Development Grant program for funds to assist with the redevelopment of the Bass Lake Road Apartments site (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58th Avenue) (improvement project no. 795) Nolte /Sommer — authorized preparation of grant application Res. 07 -101 6/25/07 Resolution approving application to Metropolitan Council's Livable Communities Demonstration Account Development Grant program for funds to assist with the redevelopment of the Bass Lake Road Apartments site (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58t Avenue ( (improvement project no. 795) Res. 07 -116 7/23/07 Resolution calling for a closed meeting of the New Hope City Council authorized by Minn. Stat. §13D.05 to discuss a counter offer for the purchase of Bass Lake Road Apartments (improvement project no. 795) Item 5b.2 8/13/07 Mayor Opem introduced for discussion Item 5b.2, Update regarding purchase of Bass Lake Road Apartments (improvement project no. 795) Res. 07 -123 8/27/07 Resolution authorizing acquisition of property at 8400 and 8420 Bass Lake Road and 8401, 8411 and 8421 58 Avenue North by direct negotiation (Bass Lake Road Apartments) (improvement project no. 795) Res. 07 -124 8/27/07 Resolution selecting Evergreen Land Services (ELS) to provide relocation services in connection with the acquisition of the Bass Lake Road Apartment complex (improvement project no. 795) Res. 07 -125 8/27/07 Resolution authorizing award for inspection services related to pre - demolition building survey for the Bass Lake Road apartments project (improvement project no. 795) Acquisition — August, 2007 (see project #836) Res. 07 -130 9/10/07 Resolution authorizing addendum to purchase agreement for the Bass Lake Road Apartments (improvement project nos. 795 and 836) Item 8.2 11/26/07 Update from Insignia Development regarding the Bass Lake Road apartment site (improvement project no. 795). Grant a 90 -day extension; city attorney to draft new agreement with contingency. Item 10.2 11/26/07 Resolution authorizing closed meeting to discuss development of new purchase offer. EDA Res. 08 -02 1/28/08 Resolution approving first amendment to interim agreement with Insignia Development for the Bass Lake Road Apartments redevelopment project (improvement project no. 795) Res. 08 -136 9/22/08 Resolution requesting the Hennepin County Housing and Redevelopment Authority (HRA) allow an expansion of eligible uses and extension of project deadline to Hennepin County's Transit Oriented Development grant program for funds to assist with the redevelopment of the Bass Lake Road Apartments site (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58th Avenue) (improvement project no. 795) EDA Res. 09 -01 2/9/09 Resolution terminating the Interim Agreement with Insignia Development for non- performance (improvement project no. 795 EDA IL Request for Action IL VI R2 Originating Department Approved for Agenda Agenda Section Community Development _ January 9, 2006 EDA Item No. _. By: Kirk McDonald, CD Director By :i 4 Kim Green, CD Assistant Resolution authorizing an interim agreement with PariPassu /Trio Development for the Bass Lake Road Apartments redevelopment project (8400 and 8420 Bass Lake Road and 8401, 8411, and 842158th Avenue) (improvement project no. 795)' Requested Action Staff requests that the Economic Development Authority (EDA) approve a resolution authorizing an interim agreement with the preferred redeveloper for the Bass Lake Road Apartments site, PariPassu /Trio Development. The Council reviewed the interim agreement at the work session on December 19. The agreement outlines how preliminary redevelopment costs and responsibilities will be shared with the redeveloper. Policy /Past Practice Priority goal number two emphasizes the maintenance and redevelopment of commercial and residential properties. To assist with this goal, the city often selects a preferred redeveloper and participates in a development agreement for the redevelopment of a site in the city. Background On November 28, 2005, the EDA approved a resolution for a 120 -day exclusive negotiation period with PariPassu /Trio Development for the redevelopment of the Bass Lake Road Apartments site. PariPassu /Trio was one of three development teams that participated in a developer selection process, which began in the spring of 2005. City staff and consultants have met with PariPassu /Trio several times in the past few weeks to discuss the concept plans and begin the negotiation of a term sheet, which is expected to be completed by March 28, 2006. At the December 19 work session, staff Erovided an update to the Council on the p rogress made at the Motion by / �� Second b f , To: I: \RFA \PLANNING \Livable Communities \ Bass Lake Road Apts \Q & R- Resolution approving the interium agreement with PariPassTrio for BLR project.doc Request for Action, Page 2 of 3 January 9, 2006 meetings with the redeveloper. Staff and PariPassu /Trio Development have identified two basic goals to accomplish during the 120 -day negotiation period. The first goal is to complete a term sheet and understand the financial feasibility of the project. The second goal is to develop a concept plan. To accomplish these goals, staff created two tracks for moving forward: 1) the development agreement track and 2) the planning track. The two tracks will occur simultaneously. 1) Development Agreement Track The goals of the development agreement track for the 120 -day exclusive negotiation period are to prepare a term sheet and determine financial feasibly. At the December 19 work session, staff presented a tentative interim agreement for the Council to review. The idea for the interim agreement was discussed at the initial meeting with the redeveloper and city staff, where several key items were identified that need to be addressed to determine if and how the project will move forward. City staff and the redeveloper view the negotiation process as a partnership, so an interim agreement was proposed to outline how the partners will split the costs and the responsibilities in this early stage of negotiation. The interim agreement contains four parts. Part one describes the interim nature of the agreement. Part two identifies the undertakings of the redeveloper and associated completion dates. PariPassu /Trio will be responsible for conducting a Phase I environmental assessment of the site and completing soil borings and other environmental assessments, if needed. PariPassu /Trio will also develop a preliminary site plan, work with city to analyze economic feasibly, present monthly updates, and negotiate the term sheet with the city. Part three of the interim agreement describes the undertakings of the city, which include obtaining a TIF/blight analysis for the redevelopment district, determining allowable density, working to negotiate a term sheet with the redeveloper, and exploring grant opportunities. The final part, part four, describes the redeveloper deposit and cost sharing approach. It was tentatively agreed between the city and the redeveloper that that the preliminary costs would be shared 50/50. The four initial costs identified include: 1. Soil tests 2. Phase 1 environmental analysis 3. TIF/Blight analysis 4. Site survey Cost estimates were obtained for these proposed services and were included in the interim agreement. City staff and the redeveloper agreed that each would pay for their own consultant expenses, with the exception of Krass Monroe's fees for financial analysis, which would be shared 50/50. Since the agreement was originally drafted and reviewed by the City Council, the soil boring cost estimate changed from $3,200 to $3,500, an increase of $300, because it was agreed that the northernmost soil boring should be done to a greater depth (60 -80 feet) to determine piling blow counts (see attached boring location map). In addition, Vince VanderTop, the city engineer, provided a more detailed cost breakdown for the site survey. He is recommending that the city proceed with a survey of both the Bass Lake Road Apartments site and a portion of the city's golf course at a cost of $5,000, as described in the attached email correspondence. At the December 19 work session, the Council supported the cost sharing agreement as outlined in the interim agreement, but requested more specific information about the cost of Krass Monroe's services. Krass IA RFA\ PLANNING\ Livable Communities \Bass Lake Road Apts \Q & R- Resolution approving the interium agreement with PariPassTrio for BLR project.doc Request for Action, Page 3 of 3 January 9, 2006 Monroe re- evaluated their estimate of $10,000 to $20,000, and changed the estimate to $15,000. In follow -up communications, Krass Monroe explained to staff that they always try to accomplish what needs to be done as efficiently as possible. However, because there are a number of unknowns (such as environmental condition and soil corrections, financial feasibility, whether the proposed housing product will sell in this market, etc.), the amount of their fees will depend upon how many of these sorts of "challenges" arise and how much analysis and negotiation will be needed to address them. Representatives from Krass Monroe believe that $15,000 is a reasonable estimate. If the services exceed this estimate, staff will inform the Council /EDA and request direction. 2) Planning Track The goal of the second track, the planning track, is to develop a concept plan that meets the needs of both the redeveloper and the city. The redeveloper is in the process of creating up to three concept site plans to help determine how the building could best be accommodated with minimal impact on the neighborhood and the city golf course. PariPassu remains interested in arranging a tour for the Council /EDA and other interested parties to help identify the preferred building architecture and plans to bring back ideas for the tour to city staff in January. PariPassu and staff agree that public input will be important during the planning process. After a concept is developed and shared with the Council, it is proposed that an open house be held to solicit feedback from the community. The planning track includes planning for the proposed infrastructure improvements to Bass Lake Road, which will be mostly paid for with federal grant funds. At the December 19 work session, the Council authorized staff to begin the preliminary survey for the roadway, which will provide for a better understanding of how the roadway improvements will affect the shape and size of the Bass Lake Road Apartments redevelopment site. City staff will be seeking authorization from the City Council to complete a full feasibility report for the roadway improvements at a future meeting. Funding: If the EDA formally approves the attached interim agreement, the development team will submit a $500 non- refundable fee and a $5,000 refundable deposit to cover their portion of incurred costs. The redeveloper will be required to replenish this deposit when the balance falls below $1,000, upon request by the city. Funds for the city's preliminary redevelopment expenses will come from the EDA budget. After the TIF district is established for the project, the city may decide to seek reimbursement for eligible expenses. Recommendation: Staff recommends approval of the attached resolution authorizing an interim agreement with PariPassu /Trio Development. Attachments: 1. Interim agreement 2. Soil boring location map 3. Email correspondence from city engineer 4. Work plan for planning track I: \RFA \PLANNING \Livable Communities \Bass Lake Road Apts \Q & R- Resolution approving the interium agreement with PariPassTrio for BLR project.doc City of New Hope EDA Resolution No. 2006- 01 Resolution authorizing an interim agreement with PariPassu/Trio Development for the Bass Lake Road Apartments redevelopment project WHEREAS, the Bass Lake Road Apartment site (the "Site ") consists of approximately 3.6 acres of land with five tax parcels at 8400 and 8420 Bass Lake Road and 8401, 8411 and 8421 - 58th Avenue; and, WHEREAS the City plans to redevelop the Site into for -sale multi- family housing; and, WHEREAS, at its meeting on November 28, 2005, the Economic Development Authority (EDA) authorized a four -month exclusive negotiation period with PariPassu /Trio Development (the "Redeveloper ") to conduct environmental and other due diligence, determine Project feasibility and develop a preliminary concept plan; and, WHEREAS, in its proposal, the Redeveloper proposes to invest additional time, expertise and money to continue to work with the City to refine the site plan and examine the economic feasibility of redeveloping the Site; and, WHEREAS, preliminary redevelopment activities need to be accomplished and the City and the Redeveloper seek to work as partners to pay for and accomplish the necessary tasks. NOW, THEREFORE, BE IT RESOLVED, that the Economic Development Authority of the city of New Hope, Minnesota authorizes the interim agreement ( "Exhibit A ") between the City and PariPassu Development Corp/Trio Development, which outlines responsibilities and cost sharing agreements between the two parties. Adopted by the Economic Development Authority of the city of New Hope, Hennepin County, Minnesota, this 9th day of January, 2006. k , /)m L l Attest: Martin Opem Sr., President /Daniel J. Donahue, Executive Director Exhibit A INTERIM AGREEMENT This INTERIM AGREEMENT entered into effective the 9th day of January, 2006 by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority") and PariPassu Development Corp., a Minnesota corporation (the "the Redeveloper "). WHEREAS, following Boisclair Corporation's withdrawal of its proposal in January 2005, in March 2005 the Authority distributed requests for proposals and hosted a developers' roundtable regarding redevelopment of the Bass Lake Road apartments site (the "Project "); WHEREAS, several candidates submitted responses and, over the summer, the candidates met with City and Authority staff and discussed plans for the Project at the July 18, 2005 City Council meeting; WHEREAS, several development teams submitted proposals to the City, which were presented to City Council on September 19 and October 10, 2005; WHEREAS, at its meeting on November 28, 2005, the Authority authorized a four - month exclusive negotiation period with the Redeveloper to conduct environmental and other due diligence, determine Project feasibility and develop a preliminary concept plan; NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each of them does hereby agree as follows: 1. Interim Nature of Agreement The Authority and the Redeveloper agree that this Agreement is intended to be preliminary in nature. Before the Authority and the Redeveloper can make a decision on whether to proceed with the Project, it will be necessary to assemble and consider information relating to the economics, site assembly, phasing, environmental remediation and other aspects of the Project. The purpose of this Agreement is to allow the Redeveloper an opportunity to assemble such information, to prepare a preliminary concept plan and to negotiate with the Authority concerning the approval of a term sheet (the "Term Sheet ") with a view to eventual execution of a contract for private redevelopment (the "Redevelopment Agreement ") which will set forth the rights and responsibilities of the Authority and the Redeveloper with respect to the Project. 2. Undertakings of the Redeveloper (a) By January 31, 2006 the Redeveloper will: Conduct a Phase I environmental assessment of the site. Complete any soil borings and other environmental assessment needed to estimate the cost of required environmental remediation and soil corrections necessary to complete the Project. (b) From the date hereof through March 28, 2006 the Redeveloper will: • In consultation with the Authority, the City and City residents, develop a preliminary concept plan. • Work with the Authority's redevelopment consultants to analyze preliminary economic feasibility. • Present monthly progress reports to City Council. • Negotiate the Term Sheet with the Authority. 3. Undertakings of the Authority (a) The Authority agrees to cooperate with the Redeveloper in the Redeveloper's undertakings, and agrees that during the term of this Agreement the Authority will not negotiate with any third party in connection with redevelopment of the site. (b) The Authority will take the following actions: • By January 31, 2006, determine at least on a preliminary basis whether the blight test for a redevelopment district is likely to be met. • By March 28, 2006, determine the Authority's and the City's willingness to allow a density that maximizes the financial feasibility of the Project that is consistent with market conditions. • Through March 28, 2006, negotiate the Term Sheet with the Redeveloper. • On an ongoing basis, explore grant opportunities and other funding sources. 4. Redeveloper Deposit; Cost Sharing (a) During the term of this Agreement, the Authority shall pay the fees and costs of its planning consultants, Northwest Associated Consultants; its engineering consultants, Bonestroo Rosene Anderlik & Associates; and the City attorney, Jensen & Sondrall, P.A. The Redeveloper shall pay the fees and costs of its consultants. K (b) The Authority and Redeveloper agree to split the following costs equally: (i) Fees incurred after December 9, 2005 by the Authority's redevelopment counsel, Krass Monroe, P.A., for financial and project feasibility analysis, review of blight analysis, review of site qualification for inclusion in a tax increment district and drafting and negotiation of a term sheet, and (ii) Preliminary redevelopment expenses including environmental analysis, soil borings, blight analysis, boundary survey and other expenses that the parties agree shall be subject to cost sharing. The projected budget for these costs is as follows: Description Projected Amount Phase I environmental assessment ............................ $ 1,700 Soil borings ................................ ............................... 3,500 Blight analysis ............................ ............................... 9,000 Boundary and topo survey and golf course topo survey .............................. ............................... 5,000 Fees of Krass Monroe, P.A ................. not to exceed 15,000 (c) Upon execution of this Agreement, the Redeveloper shall pay a non- refundable fee of $500.00 to the Authority. The Redeveloper shall also make an initial deposit of $5,000.00 to be applied by the Authority toward the Redeveloper's share of costs incurred by the Authority which are subject to this Paragraph 4. The Redeveloper shall replenish this deposit when the balance falls below $1,000.00 upon request by the Authority. The Authority will reimburse the Redeveloper for its share of costs incurred by the Redeveloper which are subject to this Paragraph 4. (d) Before either party incurs expenses of the type set forth in subparagraph (b)(ii) above, such party shall provide to the other a copy of the contract with the service provider (or, in the absence of a contract, a statement of the scope and terms of the engagement) and a statement of the projected fees involved. Both parties must approve expenses prior to their being incurred. (e) In accordance with City policy, following approval of the Term Sheet by the Authority, the Redeveloper will pay all normal and customary City and Authority costs associated with the plan review and approval process. 5. City and Authority Use of Work Product The Redeveloper shall make available at no cost to the City and the Authority for their unrestricted use all available non - proprietary work product, including market analyses, soil and engineering reports, geotechnical reports, infrastructure construction budgets and other documentation produced specifically for the site. 3 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. G: \WPDATA\N\NEW HOPE \1900C\INTERIM AGREE VIDOC ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA By: President By: Executive Director Authority Signature Page — Interim Agreement El PARIPASSU DEVELOPMENT CORP. By: Its: Redeveloper Signature Page — Interim Agreement Q�-- C m s � �I oll. I Page 1 of 1 Green Kim From: Vander Top, Vince T [vvandertop @bonestroo.com] Sent: Wednesday, December 28, 2005 10:30 AM To: McDonald Kirk; Green Kim Cc: Gay Cerney; Wagenaar, Peter M; Quisberg, Jason P; Johnson Guy; Coone Paul Subject: Bass Lake Road Apartment Survey I have reviewed the potential redevelopment project with Pete W. Pete is a RLS in our St. Paul office. Pete started with Bonestroo earlier this year and he brings a lot of knowledge and experience. I'm sure you'll get a chance to meet him at some point. As this project continues to move forward, Pete would coordinate all of the Land Surveying requirements. Pete is also familiar with the Paripassu group as he is currently working with them on another project. Pete also knows Gordy Jensen (Sondrall's partner) from other projects. Overall, Pete's involvement should greatly improve the communication process over our recent experience with Winnetka Green. After reviewing the project, we would propose the following survey costs: Part 1 — Bass Lake Road Apartments Complete a boundary and topo survey. Include legal description. This would assure that we are all using the same property lines and boundaries for the development. Lump Sum = $2,800 Part 2 — Addendum to Part #1 If the project continues to move forward and the City purchases the property to sell to the developer, it is likely that an ALTA Survey will be required. The survey work completed in Part #1 could be converted into an ALTA survey after the completion of a title commitment by others. Additional time for the surveyor would also be required equating to approximately $1,000. This part could be discussed further and approved in the future if necessary. Part 3 — Golf Course Survey There is potential for the development to encroach onto the golf course property and possibly impact the course and parking lot. It would be appropriate to do a topo survey of the parking lot, area around the club house, and all of hole #9 including the pond, green, and fairway. This work on the golf course property could be complete for $2,200 At this time, we would only need to move forward on Part #1, but it would be efficient to do Parts #1 and #3 at the same time. Part #2 can wait. Also, the Bass Lake Road survey may be starting as early as today. The surveyor is reviewing some things with Jason Quisberg this morning. The Bass Lake Road survey is independent of the Bass Lake Road Apartment survey discussed in this email, but the two will be coordinated. We can review this information this afternoon at our meeting. Vince 12/28/2005 d- 4-, 0 (1) b-0 • E 0 0 u 0 0 e4 CL4 cu -0 iS 0 Q O u (U O :LI u U 7� tj cu > u u 0 u - d u , 0 W (1) 0 z In CL4 0 w cu Lr O C) Cq 0 �4 0 0 N 0 71 i." Lr) Q) (U u 0 11 d- 4-, 0 (1) b-0 e4 CL4 4. 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'N u (U 0 V)60 z It k4-4 0 bA Q) INTERIM AGREEMENT This INTERIM AGREEMENT entered into effective the 9th day of January, 2006 by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority ") and PariPassu Development Corp., a Minnesota corporation (the "the Redeveloper "). WHEREAS, following Boisclair Corporation's withdrawal of its proposal in January 2005, in March 2005 the Authority distributed requests for proposals and hosted a developers' roundtable regarding redevelopment of the Bass Lake Road apartments site (the "Project "); WHEREAS, several candidates submitted responses and, over the summer, the candidates met with City and Authority staff and discussed plans for the Project at the July 18, 2005 City Council meeting; WHEREAS, several development teams submitted proposals to the City, which were presented to City Council on September 19 and October 10, 2005; WHEREAS, at its meeting on November 28, 2005, the Authority authorized a four - month exclusive negotiation period with the Redeveloper to conduct environmental and other due diligence, determine Project feasibility and develop a preliminary concept plan; NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each of them does hereby agree as follows: 1. Interim Nature of Agreement The Authority and the Redeveloper agree that this Agreement is intended to be preliminary in nature. Before the Authority and the Redeveloper can make a decision on whether to proceed with the Project, it will be necessary to assemble and consider information relating to the economics, site assembly, phasing, environmental remediation and other aspects of the Project. The purpose of this Agreement is to allow the Redeveloper an opportunity to assemble such information, to prepare a preliminary concept plan and to negotiate with the Authority concerning the approval of a term sheet (the "Term Sheet ") with a view to eventual execution of a contract for private redevelopment (the "Redevelopment Agreement ") which will set forth the rights and responsibilities of the Authority and the Redeveloper with respect to the Project. 2. Undertakings of the Redeveloper (a) By January 31, 2006 the Redeveloper will: • Conduct a Phase I environmental assessment of the site. Complete any soil borings and other environmental assessment needed to estimate the cost of required environmental remediation and soil corrections necessary to complete the Project. (b) From the date hereof through March 28, 2006 the Redeveloper will: • In consultation with the Authority, the City and City residents, develop a preliminary concept plan. • Work with the Authority's redevelopment consultants to analyze preliminary economic feasibility. • Present monthly progress reports to City Council. • Negotiate the Term Sheet with the Authority. 3. Undertakings of the Authority (a) The Authority agrees to cooperate with the Redeveloper in the Redeveloper's undertakings, and agrees that during the term of this Agreement the Authority will not negotiate with any third party in connection with redevelopment of the site. (b) The Authority will take the following actions: • By January 31, 2006, determine at least on a preliminary basis whether the blight test for a redevelopment district is likely to be met. • By March 28, 2006, determine the Authority's and the City's willingness to allow a density that maximizes the financial feasibility of the Project that is consistent with market conditions. • Through March 28, 2006, negotiate the Term Sheet with the Redeveloper. • On an ongoing basis, explore grant opportunities and other funding sources. 4. Redeveloper Deposit; Cost Sharing (a) During the term of this Agreement, the Authority shall pay the fees and costs of its planning consultants, Northwest Associated Consultants; its engineering consultants, Bonestroo Rosene Anderlik & Associates; and the City attorney, Jensen & Sondrall, P.A. The Redeveloper shall pay the fees and costs of its consultants. (b) The Authority and Redeveloper agree to split the following costs equally: (i) Fees incurred after December 9, 2005 by the Authority's redevelopment counsel, Krass Monroe, P.A., for financial and project feasibility analysis, review of blight analysis, review of site qualification for inclusion in a tax increment district and drafting and negotiation of a term sheet, and (ii) Preliminary redevelopment expenses including environmental analysis, soil borings, blight analysis, boundary survey and other expenses that the parties agree shall be subject to cost sharing. The projected budget for these costs is as follows: Description Projected Amount Phase I environmental assessment ............................ $ 1,700 Soil borings ................................ ............................... 3,500 Blight analysis ............................ ............................... 9,000 Boundary and topo survey and golf course topo survey .............................. ............................... 5,000 Fees of Krass Monroe, P.A ................. not to exceed 15,000 (c) Upon execution of this Agreement, the Redeveloper shall pay a non- refundable fee of $500.00 to the Authority. The Redeveloper shall also make an initial deposit of $5,000.00 to be applied by the Authority toward the Redeveloper's share of costs incurred by the Authority which are subject to this Paragraph 4. The Redeveloper shall replenish this deposit when the balance falls below $1,000.00 upon request by the Authority. The Authority will reimburse the Redeveloper for its share of costs incurred by the Redeveloper which are subject to this Paragraph 4. (d) Before either party incurs expenses of the type set forth in subparagraph (b)(ii) above, such party shall provide to the other a copy of the contract with the service provider (or, in the absence of a contract, a statement of the scope and terms of the engagement) and a statement of the projected fees involved. Both parties must approve expenses prior to their being incurred. (e) In accordance with City policy, following approval of the Term Sheet by the Authority, the Redeveloper will pay all normal and customary City and Authority costs associated with the plan review and approval process. 5. City and Authority Use of Work Product The Redeveloper shall make available at no cost to the City and the Authority for their unrestricted use all available non - proprietary work product, including market analyses, soil and engineering reports, geotechnical reports, infrastructure construction budgets and other documentation produced specifically for the site. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. G : \WPDATAMNEW HOPE \I9\D00INTERIM AGREE VIDOC ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA r By: Pr sident B, ` y Executive Director Authority Signature Page — Interim Agreement 2 PARIPASSU DEVELOPMENT CORP. B jtS y Redeveloper Signature Page — Interim Agreement k. ......... .... .......... January 11, 2006 Jonathan Lockhart PariPassu Development 4999 France Avenue South, Suite 248 Minneapolis, MN 55410 Dear Jonathan Lockhart: As you are aware, the EDA approved a resolution entering into an interim agreement with your firm at the January 9, 2006 EDA meeting. Enclosed are two copies of the agreement. Please sign both copies and return one copy to me at 4401 Xylon Avenue North, New Hope, MN 55428 as soon as possible. Sincerely, / Kim Community Development Assistant CC: Dan Donahue, City Manager Kirk McDonald, Community Development Director tt Qity Clerk (improvement project 795) 4401 Xylon Avenue North ® New Hope, Minnesota 55428-4898 ® www. ci.new-hope.mn.us City Hall: 763-531-5100 + Police (non-emergency): 763-531-5170 ® Public Works: 763-592-6777 * TDD: 763-531-5109 City Hall Fax: 763-531-5136 ® Police Fax: 763-531-5174 ® Public Works Fax: 763-592-6776 EDA IL Request for Action Originating Department Approved for Agenda Agenda Section Community Development March 27, 2006 EDA Item No. 4 By: Kirk McDonald, CD Director By: Kim Green, CD Assistant Resolution authorizing the extension of the interim agreement between the Economic Development Authority in and for the city of New Hope and PariPassu /Trio Development for the redevelopment of the Bass Lake Road Apartments site (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58 Avenue) (improvement project no. 795) Requested Action Staff requests that the Economic Development Authority (EDA) approve a resolution authorizing an extension of the term of the interim agreement with the preferred redeveloper for the Bass Lake Road Apartments site, PariPassu /Trio Development, from March 28, 2006, to April 30, 2006. All other conditions in the interim agreement remain unchanged, including how preliminary redevelopment costs and responsibilities are to be shared between the EDA and the redeveloper. Policy /Past Practice Priority goal number two emphasizes the maintenance and redevelopment of commercial and residential properties. To assist with this goal, the city can select a preferred redeveloper and participates in a development agreement for the redevelopment of a site in the city. Background On November 28, 2005, the EDA approved a resolution for a 120 -day exclusive negotiation period with PariPassu /Trio Development for the redevelopment of the Bass Lake Road Apartments site. PariPassu /Trio was one of three development teams that participated in a redeveloper selection process, which began in the spring of 2005. Following a month of discussions, the EDA and the redeveloper entered into an interim agreement, effective January 9, 2006, which identifies how the preliminary redevelopment costs and responsibilities are shared between the city and the redeveloper during the negotiation period. Motion by : Second by I: \RFA \PLANNING \Livable Communities \ Bass Lake Road Apts \Q & R- Resolution approving extension of interium agreement with PariPassTrio for BLR project.doc Request for Action, Page 2 of 3 March 27, 2006 The goal of the negotiation period is to determine financial feasibly, prepare a term sheet, and develop a preliminary concept plan. On February 27, 2006, staff updated the Council on the steps that have been taken to better understand the site, the estimated redevelopment costs, and the proposed condominium building. The steps taken to date include: 1. PariPassu obtained additional soil borings from Braun Intertec, which demonstrated the need for the building to be constructed on about 400 pilings. 2. PariPassu obtained a Phase 1 environmental analysis of the site. The environmental consultant, Braun Intertec, did not discover any indication of potential contamination issues on site, and did not recommend a phase II analysis. 3. The city obtained a TIF analysis inspection. The inspector from LHB determined that the Bass Lake Road Apartments qualify as blighted and a TIF district can therefore be created for the site. 4. The city engineer conducted a boundary survey of the Bass Lake Road Apartments and the western portion of the city's golf course. 5. The city engineer examined the realignment of Yukon and Xylon avenues and provided preliminary sketches to show how the roadway improvements might impact the redevelopment site and adjacent properties. 6. PariPassu took the City Council and city staff on a bus tour of five projects similar to the proposed condominiums at Village on the Green to get an idea for the type of structure the City Council would prefer for the site. 7. At the redeveloper's request, city staff, the city attorney, and the redeveloper met with the property owner's attorney to discuss the potential negotiated acquisition of the apartments. 8. Weis Builders created a preliminary budget estimate proposal for the condominium building based on SummerCrest of Edinburgh in Brooklyn Park, the first project viewed by the City Council during the bus tour. 9. The city submitted a grant application to Hennepin County's Transit Oriented Development grant program requesting $375,000 to increase the water main capacity serving the redevelopment site. Staff, consultants, and the redeveloper have continued to work through the details that will allow the City Council /EDA to assess the financial feasibility of the project. Krass Monroe, the city's financial consultant, has prepared a very preliminary term sheet the addresses the major points of negotiation between the city and the redeveloper. Staff would like to review the financial details of the project and discuss the preliminary term sheet with the Council at a special work session, which has been scheduled on Thursday, March 30, 2006, at 6:30 p.m. Following the work session, staff hopes to work with PariPassu/Trio to revise the term sheet. If the negotiations move forward as planned, a term sheet will be presented to the Council for adoption at the April 24 Council meeting. To accommodate this timeline, staff and the redeveloper request that the Council authorize an extension of the term of the interim agreement from March 28, 2006, to April 30, 2006. Funding The extension of the interim agreement does not require additional funds. The city's share of the preliminary redevelopment costs, as outlined in the interim agreement approved by the EDA on January 9, 2006, remain unchanged. Request for Action, Page 3 of 3 March 27, 2006 Recommendations /Next Steps Staff recommends approval of the attached resolution authorizing the extension of the term of the interim agreement with PariPassu /Trio Development from March 28, 2006, to April 30, 2006. If negotiations move forward as anticipated, the following steps will occur: 10. Thursday, March 30, 6:30 p.m. Special City Council /EDA work session to discuss financial details of project and review preliminary term sheet. PariPassu /Trio Development and Krass Monroe to attend. 11. March 31 through April 14. Staff, consultants, and redeveloper to continue negotiations. Term sheet revised /updated. 12. Term sheet presented to EDA at April 24 EDA meeting. 13. April 30. Extended interim agreement expires. Attachments 1. Resolution 2. First Amendment to Interim Agreement 3. Copy of original interim agreement, effective January 9, 2006 ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION NO. EDA 06 -02 A RESOLUTION AUTHORIZING AN EXTENSION OF THE INTERIM AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE AND PARIPASSU /TRIO DEVELOPMENT FOR THE REDEVELOPMENT OF THE BASS LAKE ROAD APARTMENTS SITE BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope (the "Authority") as follows: Section 1. Recitals 1.01 The Bass Lake Road Apartment site (the "Site ") consists of approximately 3.6 acres of land with five tax parcels at 8400 and 8420 Bass Lake Road and 8401, 8411 and 8421 - 58th Avenue. The Site currently consists of five 12 -unit rental apartment buildings. 1.02 The City plans to redevelop the Site into for -sale multi - family housing. 1.03 Following a request for proposals by the City and consideration of the proposals received, PariPassu/Trio Development (the "Redeveloper ") was chosen as the City's tentative Developer /Builder for the Site. 1.04 On November 28, 2006, the Authority authorized a 120 -day exclusive negotiation period with the Redeveloper to refine the site plan and examine the economic feasibility of redeveloping the Site. 1.05 Pursuant to that resolution, the Authority and the Redeveloper entered into an Interim Agreement effective as of January 9, 2006 and expiring March 28, 2006, setting forth responsibilities and deadlines for each of the parties. 1.06 The Redeveloper has requested that the Interim Agreement be extended for an additional month so that it may continue to work with the City on project feasibility. Section 2. Findings 2.01 The Authority hereby finds that the redevelopment of the Site and extension of the Interim Agreement promotes the objectives outlined in its Restated Redevelopment Plan for Redevelopment Project No. 1 established pursuant to Minnesota Statutes, Section 469.001 et seq. Section 3. Authorizations 3.01 The Authority hereby approves execution and delivery of a First Amendment to Interim Agreement extending the term of the Interim Agreement from March 28, 2006 to April 30, 2006. 3.02 The President and Executive Director are hereby authorized to execute and deliver the First Amendment in substantially the form presented to the Authority, with such additions and modifications as those Officers may deem desirable or necessary as evidenced by their execution thereof. Adopted by the Authority this 27th day of March, 2006. in �p_ S ATTEST: aniel J. D a ue, Executive Director G. \WPDATA \N\NEW HOPE \19 \DOC \RESOL (EDA) EXTENDING INTERIM AGREE.DOC FIRST AMENDMENT TO INTERIM AGREEMENT THIS AGREEMENT (the "First Amendment ") is entered into effective the .2 7 day of March, 2006 by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority ") and PariPassu Development Corp., a Minnesota corporation (the "the Redeveloper "). WHEREAS, the Authority and the Redeveloper entered into an Interim Agreement dated effective January 9, 2006 (the "Agreement "); WHEREAS, the City and the Redeveloper desire to amend the Agreement to further the purposes set forth herein. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, the parties hereby agree as follows: The term of the Agreement is extended to April 30, 2006, and the date of April 30, 2006 shall be substituted for the date of March 28, 2006 everywhere that the latter date appears in the Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA t Y: f r , President By: Executive r ctor G H0PB19\D0QF|RST AMENDMENT TO INTERIM AGREE V1.DOC INTERIM AGREEMENT This INTERIM AGREEMENT entered into effective the 9th day of January, 2006 by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority ") and PariPassu Development Corp., a Minnesota corporation (the `.`the Redeveloper "). WHEREAS, following Boisclair Corporation's withdrawal of its proposal in January 2005, in March 2005 the Authority distributed requests for proposals and hosted a developers' roundtable regarding redevelopment of the Bass Lake Road apartments site (the "Project "); WHEREAS, several candidates submitted responses and, over the summer, the candidates met with City and Authority staff and discussed plans for the Project at the July 18, 2005 City Council meeting; WHEREAS, several development teams submitted proposals to the City, which were presented to City Council on September 19 and October 10, 2005; WHEREAS, at its meeting on November 28, 2005, the Authority authorized a four - month exclusive negotiation period with the Redeveloper to conduct environmental and other due diligence, determine Project feasibility and develop a preliminary concept plan; NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each of them does hereby agree as follows: 1. Interim Nature of Agreement The Authority and the Redeveloper agree that this Agreement is intended to be preliminary in nature. Before the Authority and the Redeveloper can make a decision on whether to proceed with the Project, it will be necessary to assemble and consider information relating to the economics, site assembly, phasing, environmental remediation and other aspects of the Project. The purpose of this Agreement is to allow the Redeveloper an opportunity to assemble such information, to prepare a preliminary concept plan and to negotiate with- the Authority concerning the approval of a term sheet (the "Term Sheet ") with a view to eventual execution of a contract for private redevelopment (the "Redevelopment Agreement ") which will set forth the rights and responsibilities of the Authority and the Redeveloper with respect to the Project. 2. Undertakings of the Redeveloper (a) By January 31, 2006 the Redeveloper will: Conduct a Phase I environmental assessment of the site. 4, Complete any soil borings and other environmental assessment needed to estimate the cost of required environmental remediation and soil corrections necessary to complete the Project. (b) From the date hereof through March 28, 2006 the Redeveloper will: • In consultation with the Authority, the City and City residents, develop a preliminary concept plan. • Work with the Authority's redevelopment consultants to analyze preliminary economic feasibility. • Present monthly progress reports to City Council. • Negotiate the Term Sheet with the Authority. 3. Undertakings of the Authority (a) The Authority agrees to cooperate with the Redeveloper in the Redeveloper's undertakings, and agrees that during the term of this Agreement the Authority will not negotiate with any third party in connection with redevelopment of the site. (b) The Authority will take the following actions: By January 31, 2006, determine at least on a preliminary basis whether the blight test for a redevelopment district is likely to be met. • By March 28, 2006, determine the Authority's and the City's willingness to allow a density that maximizes the financial feasibility of the Project that is consistent with market conditions. • Through March 28, 2006, negotiate the Term Sheet with the Redeveloper. • On an ongoing basis, explore grant opportunities and other funding sources. 4. Redeveloper Deposit, Sharing (a) During the term of this Agreement, the Authority shall pay the fees and costs of its planning consultants, Northwest Associated Consultants; its engineering consultants, Bonestroo Rosene Anderlik & Associates; and the City attorney, Jensen & Sondrall, P.A. The Redeveloper shall pay the fees and costs of its consultants. 1) (b) The Authority and Redeveloper agree to split the following costs equally: (i) Fees incurred after December 9, 2005 by the Authority's redevelopment counsel, Krass Monroe, P.A., for financial and project feasibility analysis, review of blight analysis, review of site qualification for inclusion in a tax increment district and drafting and negotiation of a term sheet, and (ii) Preliminary redevelopment expenses including environmental analysis, soil borings, blight analysis, boundary survey and other expenses that the parties agree shall be subject to cost sharing. The projected budget for these costs is as follows: Description Projected Amount Phase I environmental assessment ............................ $ 1,700 Soilborings ................................ ............................... 3,500 Blightanalysis ............................ ............................... 9,000 $oundary and topo survey and golf course toposurvey .............................. ............................... 5,000 Fees of Krass Monroe, P.A ................. not to exceed 15,000 (c) Upon execution of this Agreement, the Redeveloper shall pay a non- refundable fee of $500.00 to the Authority. The Redeveloper shall also make an initial deposit of $5,000.00 to be applied by the Authority toward the Redeveloper's share of costs incurred by the Authority which are subject to this Paragraph 4. The Redeveloper shall replenish this deposit when the balance falls below $1,000.00 upon request by the Authority. The Authority will reimburse the Redeveloper for its share of costs incurred by the Redeveloper which are subject to this Paragraph 4. (d) Before either party incurs expenses of the type set forth in subparagraph (b)(ii) above, such party shall provide to the other a copy of the contract with the service provider (or, in the absence of a contract, a statement of the scope and terms of the engagement) and a statement of the projected fees involved. Both parties must approve expenses prior to their being incurred. (e) In accordance with City policy, following approval of the Term Sheet by the Authority, the Redeveloper will pay all normal and customary City and Authority costs associated with the plan review and approval process. 5. City and Authority Use of Work Product The Redeveloper shall make available at no cost to the City and the Authority for their unrestricted use all available non - proprietary work product, including market analyses, soil and engineering reports, geotechnical reports, infrastructure construction budgets and other documentation produced specifically for the site. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. GAWPDATAWNEW HOM19TOOINTERIM AGREE VIDOC ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA r By: res ent By: Executive ector Authority Signature Page — Interim Agreement 11 PARIPASSU DEVELOPMENT CORP. By. �'�r �, �z� It5;/� Redeveloper Signature Page — Interim Agreement EDA VIR IL 2 Request for Action Originating Department Approved for Agenda Agenda Section Community Development April 24, 2006 EDA Item No. By: Kirk McDonald, CD Director By. 4 Kim Green, CD Assistant Resolution authorizing the second extension of the interim agreement between the Economic Development Authority in and for the city of New Hope and PariPassu/Trio Development for the redevelopment of the Bass Lake Road Apartments site (8400 and 8420 Bass Lake Road and 8401, 8411, and 8421 58th Avenue) (improvement project no. 795) Requested Action Staff requests the Economic Development Authority (EDA) approve a resolution authorizing the second extension of the term of the interim agreement with the preferred redeveloper for the Bass Lake Road Apartments site, PariPassu /Trio Development. On March 27, 2006, the EDA authorized the extension of the agreement from March 28, 2006, to April 30, 2006. If the EDA desires to continue negotiations with PariPassu/Trio Development, staff requests the EDA authorize a second extension of the agreement to June 30, 2006. All other conditions in the interim agreement remain unchanged, including how preliminary redevelopment costs and responsibilities are to be shared between the EDA and the redeveloper. Policy /Past Practice Priority goal number two emphasizes the maintenance and redevelopment of commercial and residential properties. To assist with this goal, the city can select a preferred redeveloper and participate in a redevelopment agreement for the redevelopment of a site in the city. Background On November 28, 2005, the EDA approved a resolution for a 120 -day exclusive negotiation period with PariPassu /Trio Development for the redevelopment of the Bass Lake Road Apartments site. PariPassu /Trio was one of three development teams that participated in a redeveloper selection process, which began in the Motion by Second by I: \RFA \PLANNING \Livable Communities \Bass Lake Road Apts \Q & R- April24 2006 Resolution approving extension of interium agreement with PariPassTrio for BLR project.doc Request for Action, Page 2 of 3 April 24, 2006 spring of 2005. Following a month of discussions, the EDA and the redeveloper entered into an interim agreement, effective January 9, 2006, which identifies how the preliminary redevelopment costs and responsibilities are shared between the city and the redeveloper during the negotiation period. On March 27, 2006, the EDA authorized the extension of the interim agreement from March 30 to April 30, 2006, to provide additional time to review project details with the redeveloper. On Thursday, March 30, the Council held a special work session to discuss the project with PariPassu /Trio Development, staff, and the city's financial consultant. The Council expressed general support for the upscale condominium project. Jim Casserly from Krass Monroe, the city's financial consultant, reviewed the financial information with the Council and indicated the current analysis shows a difference of $876,493 between the sources and uses preliminarily identified, after the use of tax increment financing (TIF). The Council requested the redeveloper consider options for modifying its proposal to allow for a reduced financial contribution from the city, while maintaining a high- quality housing product. Staff, consultants, and the redeveloper continue to work through the details that will allow the City Council /EDA and the redeveloper to prepare a term sheet that meets the needs of both the city and the redeveloper. Staff met with the redeveloper on April 13 to review the direction provided at the work session and discuss possible options for modifications to the project proposal. Staff and the development team from PariPassu /Trio met again on April 19 to outline possible approaches to improving the pro -forma for the project. Staff will present the outcome of that meeting with the Council /EDA at tonight's EDA meeting. If the EDA wishes to continue negotiations with PariPassu /Trio development, staff requests that the EDA authorize a second extension for the agreement to June 30, 2006. All other conditions in the interim agreement remain unchanged, including how preliminary redevelopment costs and responsibilities are to be shared between the EDA and the redeveloper. As the EDA is aware, there are several important infrastructure projects associated with this potential redevelopment, including the $1.4 million federal grant for the alignment of Yukon and Xylon avenues and the potential grant from Hennepin County for the water main improvements. In addition, the County has dedicated funding to assist with the local match for the roadway improvement project. Staff recommends that the city continue to work with the redeveloper to negotiate agreeable terms, keeping in mind the many city- wide benefits and opportunities what would be created by the proposed project. Funding The extension of the interim agreement does not require additional funds. The city's share of the preliminary redevelopment costs, as outlined in the interim agreement approved by the EDA on January 9, 2006, remain unchanged. However, if negotiations continue, at a future meeting staff might be requesting the EDA authorize additional expenses for the services of Krass Monroe. Recommendations Staff recommends approval of the attached resolution authorizing a second extension of the term of the interim agreement with PariPassu /Trio Development from April 30, 2006, to June 30, 2006. If negotiations proceed, staff will provide an update to the Council at the May 8 Council meeting and hopes to present a term sheet to the Council for approval at the first meeting in June. Request for Action, Page 3 of 3 April 24, 2006 Attachments 1. Resolution 2. Second Amendment to Interim Agreement 3. First Amendment to Interim Agreement 4. Copy of original interim agreement, effective January 9, 2006 RESOLUTION NO. 06-03 BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope (the "Authority") as follows: Section 1. Recitals. 1.01 The Bass Lake Road Apartment site (the "Site") consists of approximately 3.6 acres of land with five tax parcels at 8400 and 8420 Bass Lake Road and 8401, 8411 and 8421 - 58th Avenue. The Site currently consists of five 12-unit rental apartment buildings. 1.02 The City plans to redevelop the Site into for-sale multi-family housing. 1.03 Following a request for proposals by the City and consideration of the proposals received, PariPassu/Trio Development (the "Redeveloper") was chosen as the City's tentative Developer/Builder for the Site. 1.04 On November 28, 2006, the Authority authorized a 120-day exclusive negotiation period with the Redeveloper to refine the site plan and examine the economic feasibility of redeveloping the Site. 1.05 Pursuant to that resolution, the Authority and the Redeveloper entered into an Interim Agreement effective as of January 9, 2006 and expiring March 28, 2006, setting forth responsibilities and deadlines for each of the parties. 1.06 As requested by the Redeveloper, the Interim Agreement was extended for an additional month (until April 30, 2006) so that it could continue to work with the City on project feasibility. 1.07 The Redeveloper requests a second extension to the term of the Interim Agreement so that it may continue to work with the City on project feasibility. Section 2. Findings 2.01 The Authority hereby finds that the redevelopment of the Site and extension of the Interim Agreement promotes the objectives outlined in its Restated Redevelopment Plan for Redevelopment Project No. 1 established pursuant to Minnesota Statutes, Section 469.001 et seq. Section 3. Authorizations 3.01 The Authority hereby approves execution and delivery of a Second Amendment to Interim Agreement extending the term of the Interim Agreement from April 30, 2006 to June 30, 2006. 3.02 The President and Executive Director are hereby authorized to execute and deliver the First Amendment in substantially the form presented to the Authority, with such additions and modifications as those Officers may deem desirable or necessary as evidenced by their execution thereof. Adopted by the Authority this 24th day of April, 2006. Z 7 M . I 1 "wrA l d W- / OWN 091VEgo.012., - VCH -1 ' *- - ATTEST: r Daniel J. Donahue, Executive Direc or G: \COMMDEV\KIM\BASS LAKE ROAD APARTMENTS 2005 \PREFERRED DEVELOPER\RESOL (FDA) EXTENDING INTERIM AGREE FOR SECOND TIME.DOC INTERIM AGREEMENT This INTERIM AGREEMENT entered into effective the 9th day of January, 2006 by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority") and PariPassu Development Corp., a Minnesota corporation (the "the Redeveloper "). WHEREAS, following Boisclair Corporation's withdrawal of its proposal in January 2005, in March 2005 the Authority distributed requests for proposals and hosted a developers' roundtable regarding redevelopment of the Bass Lake Road apartments site (the "Project "); WHEREAS, several candidates submitted responses and, over the summer, the candidates met with City and Authority staff and discussed plans for the Project at the July 18, 2005 City Council meeting; WHEREAS, several development teams submitted proposals to the City, which were presented to City Council on September 19 and October 10, 2005; WHEREAS, at its meeting on November 28, 2005, the Authority authorized a four - month exclusive negotiation period with the Redeveloper to conduct environmental and other due diligence, determine Project feasibility and develop a preliminary concept plan; NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each of them does hereby agree as follows: 1. Interim Nature of Agreement The Authority and the Redeveloper agree that this Agreement is intended to be preliminary in nature. Before the Authority and the Redeveloper can make a decision on whether to proceed with the Project, it will be necessary to assemble and consider information relating to the economics, site assembly, phasing, environmental remediation and other aspects of the Project. The purpose of this Agreement is to allow the Redeveloper an opportunity to assemble such information, to prepare a preliminary concept plan and to negotiate with the Authority concerning the approval of a term sheet (the "Term Sheet ") with a view to eventual execution of a contract for private redevelopment (the "Redevelopment Agreement ") which will set forth the rights and responsibilities of the Authority and the Redeveloper with respect to the Project. 2. Undertakings of the Redeveloper (a) By January 31, 2006 the Redeveloper will: •- Conduct a Phase I environmental assessment of the site. 1, Complete any soil borings and other environmental assessment needed to estimate the cost of required environmental remediation and soil corrections necessary to complete the Project. (b) From the date hereof through March 28, 2006 the Redeveloper will: • In consultation with the Authority, the City and City residents, develop a preliminary concept plan. • Work with the Authority's redevelopment consultants to analyze preliminary economic feasibility. • Present monthly progress reports to City Council. • Negotiate the Term Sheet with the Authority. 3. Undertakings of the Authorit (a) The Authority agrees to cooperate with the Redeveloper in the Redeveloper's undertakings, and agrees that during the term of this Agreement the Authority will not negotiate with any third party in connection with redevelopment of the site. (b) The Authority will take the following actions: 1#1 By January 31, 2006, determine at least on a preliminary basis whether the blight test for a redevelopment district is likely to be met. • By March 28, 2006, determine the Authority's and the City's willingness to allow a density that maximizes the financial feasibility of the Project that is consistent with market conditions. • Through March 28, 2006, negotiate the Term Sheet with the Redeveloper. • On an ongoing basis, explore grant opportunities and other funding sources. 4. Redeveloper Deposit, C Sharing. (a) During the term of this Agreement, the Authority shall pay the fees and costs of its planning consultants, Northwest Associated Consultants; its engineering consultants, Bonestroo Rosene Anderlik & Associates; and the City attorney, Jensen & Sondrall, P.A. The Redeveloper shall pay the fees and costs of its consultants. 2 (b) The Authority and Redeveloper agree to split the following costs equally: (i) Fees incurred after December 9, 2005 by the Authority's redevelopment counsel, Krass Monroe, P.A., for financial and project feasibility analysis, review of blight analysis, review of site qualification for inclusion in a tax increment district and drafting and negotiation of a term sheet, and (ii) Preliminary redevelopment expenses including environmental analysis, soil borings, blight analysis, boundary survey and other expenses that the parties agree shall be subject to cost sharing. The projected budget for these costs is as follows: Description Projected Amount Phase I environmental assessment ............................ $ 1,700 coilborings ................................ ............................... 3,5 Might analysis ............................ ............................... 9,000 $oundary and topo survey and golf course topo survey .............................. ............................... 5,000 Fees of Krass Monroe, P.A ................. not to exceed 15,000 (c) Upon execution of this Agreement, the Redeveloper shall pay a non- refundable fee of $500.00 to the Authority. The Redeveloper shall also make an initial deposit of $5,000.00 to be applied by the Authority toward the Redeveloper's share of costs incurred by the Authority which are subject to this Paragraph 4. The Redeveloper shall replenish this deposit when the balance falls below $1,000.00 upon request by the Authority. The Authority will reimburse the Redeveloper for its share of costs incurred by the Redeveloper which are subject to this Paragraph 4. (d) Before either parry incurs expenses of the type set forth in subparagraph (b)(ii) above, such party shall provide to the other a copy of the contract with the service provider (or, in the absence of a contract, a statement of the scope and terms of the engagement) and a statement of the projected fees involved. Both parties must approve expenses prior to their being incurred. (e) In accordance with City policy, following approval of the Term Sheet by the Authority, the Redeveloper will pay all normal and customary City and Authority costs associated with the plan review and approval process. 5. City and Authority Use of Work Product The Redeveloper shall make available at no cost to the City and the Authority for their unrestricted use all available non - proprietary work product, including market analyses, soil and engineering reports, geotechnical reports, infrastructure construction budgets and other documentation produced specifically for the site. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. G:\WPDATAVq\NEW HOPE\19MMINTERIM AGREE V3.DOC ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA By: — Ares Oent�ti 4 1 By: Executive ector Authority Signature Page — Interim Agreement F.11 PARIPASSU DEVELOPMENT CORP. By. Redeveloper Signature Page — Interim Agreement FIRST AMENDMENT TO INTERIM AGREEMENT THIS AGREEMENT (the "First Amendment ") is entered into effective the .2 7 day of March, 2006 by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority") and PariPassu Development Corp., a Minnesota corporation (the "the Redeveloper "). WHEREAS, the Authority and the Redeveloper entered into an Interim Agreement dated effective January 9, 2006 (the "Agreement "); WHEREAS, the City and the Redeveloper desire to amend the Agreement to further the purposes set forth herein. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, the parties hereby agree as follows: The term of the Agreement is extended to April 30, 2006, and the date of April 30, 2006 shall be substituted for the date of March 28, 2006 everywhere that the latter date appears in the Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA B a y *esiden 1 By: Executive 'r ctor GJWPD/A7AN\NBwHOPB18\DOC\F|R8T AMENDMENT TO INTERIM AGREE V1DOC SECOND AMENDMENT TO INTERIM AGREEMENT THIS AGREEMENT (the "Second Amendment ") is entered into effective the 24th day of April, 2006 by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority ") and PariPassu Development Corp., a Minnesota corporation (the "the Redeveloper "). WHEREAS, the Authority and the Redeveloper entered into an Interim Agreement dated effective January 9, 2006 (the "Agreement "); WHEREAS, the Authority and the Redeveloper authorized the First Amendment to the agreement dated effective March 27, 2006 (the "First Amendment "); WHEREAS, the City and the Redeveloper desire to amend the Agreement to further the purposes set forth herein. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, the parties hereby agree as follows: The term of the Agreement is extended to June 30, 2006, and the date of June 30, 2006 shall be substituted for the date of March 28, 2006 or April 30, 2006 everywhere that the latter two dates appears in the Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA By:� --- President By: \ Executivb Director PARIPASSU DEVELOPMENT CORP. By: Its: G: \CommDev\Kim\Bass Lake Road Apartments 2005\Preferred Developer \Second Amendment to Interim Agree vl.doc EDA lq5 Request for Action Originating Department Approved for Agenda Agenda Section Community Development May 8, 2006 EDA Item No. By: Kirk McDonald CD Director Y By; 4 Kim Gre en, CD Assistant Resolution authorizing a third amendment to interim agreement between the Economic Development Authority in and for the city of New Hope and PariPassu Development for the redevelopment of the Bass Lake Road Apartments site, which increases the budget for fees for Krass Monroe, P.A. Requested Action Staff requests the Economic Development Authority (EDA) approve a resolution authorizing an amendment to the interim agreement with the preferred redeveloper for the Bass Lake Road Apartments site, PariPassu Development, which increases the Krass Monroe consultant expenses by $10,000. On April 24 2006, the EDA authorized the second extension of the term of the agreement from April 30, 2006, to June 30, 2006, but the consultant expenses have not been increased to reflect the two term extensions of the original agreement. If the EDA desires to continue negotiations with PariPassu Development, staff requests the EDA authorize an amendment to the agreement to increase Krass Monroe consultant expenses by $10,000. The $10,000 would be shared 50/50 between the redeveloper and the city. All other conditions in the interim agreement remain unchanged. Policy /Past Practice Priority goal number two emphasizes the maintenance and redevelopment of commercial and residential properties. To assist with this goal, the city can select a preferred redeveloper and participate in a redevelopment agreement for the redevelopment of a site in the city. Background On November 28, 2005, the EDA approved a resolution for a 120 -day exclusive negotiation period with PariPassu Development for the redevelopment of the Bass Lake Road Apartments site. PariPassu was one of three development teams that participated in a redeveloper selection process, which began in the spring of 2005. Following a month of discussions, the EDA and the redeveloper entered into an interim agreement, effective January 9, 2006, which identifies how the preliminary redevelopment costs and responsibilities are shared between the city and the redeveloper during the negotiation period. Motion by Second by I: \ RFA\ PLANNING \ Livable Communities \ Bass Lake Road Apts \ Q & R- BLR update 5- 8- 2006.doc Request for Action, Page 2 of 3 May 8, 2006 On March 27, 2006, the EDA authorized the extension of the term of the interim agreement from March 30 to April 30, 2006, to provide additional time to review project details with the redeveloper. On April 24, 2006, the EDA authorized a second extension of the term of the interim agreement to June 30, 2006. As described in the attached correspondence from Krass Monroe, the consultant expenses have not been increased to reflect the two term extensions of the original interim agreement. The original agreement capped the financial consultant expenses at $15,000 ($7,500 each) and that amount has been expended. If work is to continue on the project, additional funding is necessary. Staff is recommending an increase of up to $10,000 in fees for Krass Monroe's services, which would be shared 50/50 between the redeveloper and the city. It is anticipated that the additional authorized funds will be adequate to finalize the preliminary financial analysis and prepare a draft term sheet. Funding The additional consultant fees would be paid for with EDA funds. Recommendations Staff recommends the approval of the attached resolution authorizing an amendment to the interim agreement with the preferred redeveloper for the Bass Lake Road Apartments site, PariPassu Development, which increases the budget for fees for Krass Monroe by $10,000. The redeveloper has agreed to share this cost with the city, so each party would be responsible for $5,000 of expenses. Attachments 1. Resolution 2. Krass Monroe Memo 3. Copy of original interim agreement, effective January 9, 2006 4. First Amendment to Interim Agreement 5. Second Amendment to Interim Agreement 6. Third Amendment to Interim Agreement •' 19 COUNTY OF HENNEPIN STATE OF MINNESOTA A RESOLUTION AUTHORIZING A THIRD AMENDMENT TO THE INTERIM AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE AND PARIPASSU DEVELOPMENT FOR THE REDEVELOPMENT OF THE BASS LAKE ROAD APARTMENTS SITE, WHICH INCREASES THE BUDGET FOR FEES FOR KRASS MONROE, P.A. BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope (the "Authority") as follows: Section 1. Recitals 1.01 The Bass Lake Road Apartment site (the "Site ") consists of approximately 3.6 acres of land with five tax parcels at 8400 and 8420 Bass Lake Road and 8401, 8411 and 8421 - 58th Avenue. The Site currently consists of five 12 -unit rental apartment buildings. 1.02 The City plans to redevelop the Site into for -sale multi- family housing. 1.03 On November 28, 2006, the Authority authorized a 120 -day exclusive negotiation period with the PariPassu Development (the "Redeveloper ") to refine the site plan and examine the economic feasibility of redeveloping the Site. 1.04 Pursuant to that resolution, the Authority and the Redeveloper entered into an Interim Agreement effective as of January 9, 2006 and expiring March 28, 2006, setting forth responsibilities and deadlines for each of the parties. 1.05 As requested by the Redeveloper, on two occasions the Interim Agreement was extended (expiring June 30, 2006) so that the Authority and Redeveloper could continue to work on project feasibility. 1.06 The Authority and the Redeveloper desire to continue to use the services of Krass Monroe to negotiates term sheet through the term of the Agreement; however, the projected budget outlined in the Agreement for fees of Krass Monroe, P.A. of $15,000 has been reached; . 1.07 The Authority and the Redeveloper desire to increase the budget for fees of Krass Monroe by $10,000; Section 2. Findings 2.01 The Authority hereby finds that the redevelopment of the Site and extension of the Interim Agreement promotes the objectives outlined in its Restated Redevelopment Plan for Redevelopment Project No. 1 established pursuant to Minnesota Statutes, Section 469.001 et seq. Section 3. Authorizations 3.01 The Authority hereby approves execution and delivery of a Third Amendment to Interim Agreement increasing the budget for fees for Krass Monroe, P.A. by $10,000. 3.02 The President and Executive Director are hereby authorized to execute and deliver the Third Amendment in substantially the form presented to the Authority, with such additions and modifications as those Officers may deem desirable or necessary as evidenced by their execution thereof. Adopted by the Authority this 8th day of May, 2006. actin Opem Srd, President JST: J. n y ue, Executive Director G: \COMMDEV\KIM\BASS LAKE ROAD APARTMENTS 2005 \PREFERRED DEVELOPER \RESOL (EDA) INCREASING KRASS MONROE BUDGET.DOC ' a James R. Casserly jcasserly @krassmonroe.com Direct 952.8 85.1296 MEMORANDUM To: City of New Hope Attn: Kirk McDonald, Community Development Director Attn: Daryl Sulander, Director of Finance From: James R. Casserly, Esq. C' Date: April 27, 2006 Re: BLR Apt. /Golf Course Site Our File No. 10048 -19 Attached please find our invoice for time through March 22, 2006. In preparing this invoice it has come to our attention that we will soon exceed the estimated amount of our fees that were to be shared between the City and PariPassu. As you recall, this was an estimated amount and that the Interim Agreement with PariPassu was to conclude March 28, 2006. The Interim Agreement has been extended twice, now to June 30, 2006, to allow both parties an opportunity to determine if the proposed project is financially feasible. We have done extensive financial analysis, reviewed multiple pro formas and have attended numerous negotiating sessions as well as separate conferences with City staff and work sessions with the City Council. We continue to believe that this project can work. Additional time is necessary to work through revised pro formas, cash flows and assumptions to analyze potential savings. Not only is there additional financial analysis necessary, but we must conclude a term sheet that is acceptable to both the City and PariPassu. Term sheet negotiations are frequently arduous because the parties are really attempting to conclude the business terms. Given these assumptions and our many years of experience in negotiating these transactions, we estimate that there will be approximately $10,000 of additional time necessary to conclude a term sheet and meet the June 30, 2006 deadline. Please let me know if you need further information. Again, thank you for giving us the opportunity to work with the City on this project. It is an exciting project as well as a very challenging one. JRC /jlt G \WPDATA \N \NEW HOPE \19 \COR \MCDONALD SULANDER JRC.DOC 8000 Norman Center Drive, Suite 1000 Minneapolis, Minnesota 55437 -1178 TEL 952.885.5999 FAX 952.885.5969 www.krassmo'nroe.com Bass Lake Road Redevelopment Cost Sharing 28- Apr -06 Budget Total 14,281.00 14,280.99 28,561.99 Authorized Invoice date Invoice # City PariPassu Total pd. survey 02/20/2006 127591 1,222.82 1,222.81 2,445.63 . Boundry Boundry survey 03/16/2006 128321 1,280.32 1,280.32 2,560.64 Bonestroo Total 5,000 5,006.27 Soil borings- Braun 3,500 Phase 1- Braun 1,700 LHB- TIF /Blight 2/7/2006 1 1,086.28 1,086.29 2,172.57 LHB- TIF /Blight 3/8/2006 2 2,879.57 2,879.58 5,759.15 LHB- TIF /Blight 4112/2006 3 317.96 317.96 635.92 LHB total 9,000 8,567.64 Krass Monroe 1/24/2006 77497 2,482.57 2,482.56 4,965.13 Krass Monroe 2/21/2006 78260 464.38 464.37 928.75 Krass Monroe 3/17/2006 78924 1,865 1,865.00 3,730 Krass Monroe 4/27/2006 79894 2,682.10 2,682.10 5,364.20 KM Total 15,000 14,988.08 Total 14,281.00 14,280.99 28,561.99 V-1Yd-q'1 'fq��, This INTERIM AGREEMENT entered into effective the 9th day of January, 2006 by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority ") and PariPassu Development Corp., a Minnesota corporation (the "the Redeveloper "). WHEREAS, following Boisclair Corporation's withdrawal of its proposal in January 2005, in March 2005 the Authority distributed requests for proposals and hosted a developers' roundtable regarding redevelopment of the Bass Lake Road apartments site (the "Project "); WHEREAS, several candidates submitted responses and, over the summer, the candidates met with City and Authority staff and discussed plans for the Project at the July 18, 2005 City Council meeting; WHEREAS, several development teams submitted proposals to the City, which were presented to City Council on September 19 and October 10, 2005; WHEREAS, at its meeting on November 28, 2005, the Authority authorized a four - month exclusive negotiation period with the Redeveloper to conduct environmental and other due diligence, determine Project feasibility and develop a preliminary concept plan; NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each of them does hereby agree as follows: 1. Interim Nature of Agreement The Authority and the Redeveloper agree that this Agreement is intended to be preliminary in nature. Before the Authority and the Redeveloper can make a decision on whether to proceed with the Project, it will be necessary to assemble and consider information relating to the economics, site assembly, phasing, environmental remediation and other aspects of the Project. The purpose of this Agreement is to allow the Redeveloper an opportunity to assemble such information, to prepare a preliminary concept plan and to negotiate with the Authority concerning the approval of a term sheet (the "Term Sheet ") with a view to eventual execution of a contract for private redevelopment (the "Redevelopment Agreement ") which will set forth the rights and responsibilities of the Authority and the Redeveloper with respect to the Project. 2. Undertakings of the Redeveloper (a) By January 31, 2006 the Redeveloper will: 41- Conduct a Phase I environmental assessment of the site. Complete any soil borings and other environmental assessment needed to estimate the cost of required environmental remediation and soil corrections necessary to complete the Project. (b) From the date hereof through March 28, 2006 the Redeveloper will: • In consultation with the Authority, the City and City residents, develop a preliminary concept plan. • Work with the Authority's redevelopment consultants to analyze preliminary economic feasibility. • Present monthly progress reports to City Council. • Negotiate the Term Sheet with the Authority. 3. Undertakings of the Authority (a) The Authority agrees to cooperate with the Redeveloper in the Redeveloper's undertakings, and agrees that during the term of this Agreement the Authority will not negotiate with any third party in connection with redevelopment of the site. (b) The Authority will take the following actions: By January 31, 2006, determine at least on a preliminary basis whether the blight test for a redevelopment district is likely to be met. • By March 28, 2006, determine the Authority's and the City's willingness to allow a density that maximizes the financial feasibility of the Project that is consistent with market conditions. • Through March 28, 2006, negotiate the Term Sheet with the Redeveloper. • On an ongoing basis, explore grant opportunities and other funding sources. 4. Redeveloper Deposit; Cost Sharing (a) During the term of this Agreement, the Authority shall pay the fees and costs of its planning consultants, Northwest Associated Consultants; its engineering consultants, Bonestroo Rosene Anderlik & Associates; and the City attorney, Jensen & Sondrall, P.A. The Redeveloper shall pay the fees and costs of its consultants. 2 (b) The Authority and Redeveloper agree to split the following costs equally: (i) Fees incurred after December 9, 2005 by the Authority's redevelopment counsel, Krass Monroe, P.A., for financial and project feasibility analysis, review of blight analysis, review of site qualification for inclusion in a tax increment district and drafting and negotiation of a term sheet, and (ii) Preliminary redevelopment expenses including environmental analysis, soil borings, blight analysis, boundary survey and other expenses that the parties agree shall be subject to cost sharing. The projected budget for these costs is as follows: Description Projected Amount Phase I environmental assessment ............................ $ 1,700 Boil borings ................................ ............................... 3,500 Blightanalysis ............................ ............................... 9,000 $oundary and topo survey and golf course toposurvey .............................. ............................... 5,000 Fees of Krass Monroe, P.A ................. not to exceed 15,000 (c) Upon execution of this Agreement, the Redeveloper shall pay a non- refundable fee of $500.00 to the Authority. The Redeveloper shall also make an initial deposit of $5,000.00 to be applied by the Authority toward the Redeveloper's share of costs incurred by the Authority which are subject to this Paragraph 4. The Redeveloper shall replenish this deposit when the balance falls below $1,000.00 upon request by the Authority. The Authority will reimburse the Redeveloper for its share of costs incurred by the Redeveloper which are subject to this Paragraph 4. (d) Before either party incurs expenses of the type set forth in subparagraph (b)(ii) above, such party shall provide to the other a copy of the contract with the service provider (or, in the absence of a contract, a statement of the scope and terms of the engagement) and a statement of the projected fees involved. Both parties must approve expenses prior to their being incurred. (e) In accordance with City policy, following approval of the Term Sheet by the Authority, the Redeveloper will pay all normal and customary City and Authority costs associated with the plan review and approval process. 5. City and Authority Use of Work Product The Redeveloper shall make available at no cost to the City and the Authority for their unrestricted use all available non - proprietary work product, including market analyses, soil and engineering reports, geotechnical reports, infrastructure construction budgets and other documentation produced specifically for the site. 3 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. GAWPDATAWNEW HOPE MDOCUNTERIM AGREE VIDOC ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA By: resident Q By: Executive ector Authority Signature Page — Interim Agreement M FIRST AMENDMENT TO INTERIM AGREEMENT THIS AGREEMENT (the "First Amendment ") is entered into effective the 2 7 day of March, 2006 by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority") and PariPassu Development Corp., a Minnesota corporation (the "the Redeveloper "). WHEREAS, the Authority and the Redeveloper entered into an Interim Agreement dated effective January 9, 2006 (the "Agreement "); WHEREAS, the City and the Redeveloper desire to amend the Agreement to further the purposes set forth herein. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, the parties hereby agree as follows: The term of the Agreement is extended to April 30, 2006, and the date of April 30, 2006 shall be substituted for the date of March 28, 2006 everywhere that the latter date appears in the Agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA r By: ar '!'' esident i By: Executive r ctor PARIPASSU DEVELOPMENT CORP. Its. Ile— G HDpB1S0OC\FR8T AMENDMENT TD INTERIM AGREE V1.DOC SECOND AMENDMENT TO INTERIM AGREEMENT THIS AGREEMENT (the "Second Amendment ") is entered into effective the 24th day of April, 2006 by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority ") and PariPassu Development Corp., a Minnesota corporation (the "the Redeveloper "). WHEREAS, the Authority and the Redeveloper entered into an Interim Agreement dated effective January 9, 2006 (the "Agreement "); WHEREAS, the Authority and the Redeveloper authorized the First Amendment to the agreement dated effective March 27, 2006 (the "First Amendment "); WHEREAS, the City and the Redeveloper desire to amend the Agreement to further the purposes set forth herein. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, the parties hereby agree as follows: The term of the Agreement is extended to June 30, 2006, and the date of June 30, 2006 shall be substituted for the date of March 28, 2006 or April 30, 2006 everywhere that the latter two dates appears in the Agreement. IN WTTNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA By: — President By: Executive Director PARIPASSU DEVELOPMENT CORP. By: Its: G : \CommDev\Kim\Bass Lake Road Apartments 2005\Preferred Developer \Second Amendment to Interim Agree vl.doc THIRD AMENDMENT TO INTERIM AGREEMENT THIS AGREEMENT (the "Third Amendment') is entered into effective the 8 day of May, 2006 by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority ") and PariPassu Development Corp., a Minnesota corporation (the "the Redeveloper "). WHEREAS, the Authority and the Redeveloper entered into an Interim Agreement dated effective January 9, 2006 (the "Agreement "); WHEREAS, the Authority and the Redeveloper authorized the Second Amendment to the agreement dated effective April 24, 2006, (the "Second Amendment "), which extended the term of the Interim Agreement to June 30, 2006; WHEREAS, the projected budget for fees of Krass Monroe, P.A. of $15,000 has been reached; WHEREAS, the Authority and the Redeveloper desire to continue to use the services of Krass Monroe to negotiate a term sheet; NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, the parties hereby agree as follows: The budget for fees of Krass Monroe, P.A., as outlined in the Agreement, is increased by $10,000. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA By: P sident r � By: j Executive erector By: Its: J P . �r�� rM�� G:\COMMDEV\KIM\BASS LAKE ROAD APARTMENTS 2005\PREFERRED DEVELOPER\THIRD AMENDMENT TO INTERIM AGREE VI.DOC K t May 12, 2006 Jonathan Lockhart PariPassu Development 4999 France Avenue South, Suite 248 Minneapolis, MN 55410 Dear Jonathan Lockhart: At its May 8, 2006, meeting, the Economic Development Authority (EDA) approved a resolution authorizing the third amendment to the interim agreement with your firm, which increases the budget for Krass Monroe fees by $10,000 to be shared equally between the city and PariPassu. Enclosed are two copies of the agreement. Please sign both copies and return one copy to me at 4401 Xylon Avenue North, New Hope, MN 55428 as soon as possible. Sincerely, Kim Green Community Development Assistant Kirk McDonald Community Development Director CC: Dan Donahue, City Manager � L�e�e City Clerk (��npr�v�:�rt��t pr�c�et X95); 4401 Xylon Avenue North * New Hope, Minnesota 55428 -4898 * www. ci.new - hope.mn.us City Hall: 763- 531 -5100 * Police (non - emergency): 763- 531 -5170 * Public Works: 763- 592 -6777 * TDD: 763- 531 -5109 City Hall Fax: 763 -531 -5136 * Police Fax: 763- 531 -5174 * Public Works Fax: 763- 592 -6776 PARIPASSU DEVELOPMENT CORP. By: Its: G: \COMMDEV\KIM\BASS LAKE ROAD APARTMENTS 2005 \PREFERRED DEVELOPER \THIRD AMENDMENT TO AGREE V1.DOC 4 June 6, 2006 Mr. Honorable Mayor Martin Opem, Sr. City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Honorable Mayor Opern, Sr., Thank you for the opportunity to work on the Bass Lake Road Re-development project; however, it is with deep regret that PariPassu Companies, Inc. must withdraw its involvement from the project. We have enjoyed working with city staff and the City Council over the past year. Our development team put forth its best faith effort in providing the City of New Hope with a quality development, yet the project's financial risk ultimately made the project infeasible for our firm. PariPassu is readily available to the City of New Hope as a resource for consultation on the Bass Lake Road Re-development project. We will gladly tender all due diligence items to the City and reconcile all bills in an expeditious manner. Please contact me with any questions at (612) 770-3746. Sii ere , Jo Lockhart P je Manager P iP ssu Companies, hie. Ki McDonald, City of New Hope Kim Green, City of New Hope Rick Fenske, Weis Builders Brian Lubben, Walsh Bishop p. 612.926,1700 0 t 612.926.1710 4999 France Avenue South, Suite 248 * Minneapolis, Minnesota 55410 www,paripassucorp-com City Council V� Request for Action Originating Department Approved for Agenda Agenda Section Community Development August 27, 2007 Development & Plannin Item No. By: Kirk McDonald, Acting CM Curtis Jacobsen, CD Specialist By: 8.3 Resolution selecting Evergreen Land Services (ELS) to provide relocation services in connection with the acquisition of the Bass Lake Road Apartment complex (improvement project no. 795) Requested Action Staff requests that the City Council select a relocation firm for the project at the Bass Lake Road Apartments site and authorize staff to utilize the firm's services for the relocation process at the apartment complex. Policy /Past Practice One of the strategic goals of the City Plan states that the city will encourage maintenance, redevelopment, and reinvestment in properties to improve the tax base. To assist with this goal, the city has acquired properties and prepared sites for redevelopment. When a city acquires property for redevelopment, the Uniform Relocation Act requires the city to provide relocation to all tenants. The relocation process is quite complex, and cities generally rely on professional relocation firms to provide the service to ensure compliance with federal laws. In the past, the city has utilized the services of Evergreen Land Services for relocation. Background Per the direction of the City Council at the April 23, 2007, meeting, staff obtained quotes from relocation firms for the relocation of the tenants at the Bass Lake Road Apartments. At that time, the city attorney was informed by the owner's attorney that 44 units in the complex are occupied, so staff prepared a Request for Quotes (RFQ) for relocation services for 44 units. As requested by the City Council, staff included a request for quotes for property management services. Staff has been informed by several individuals in the field that no relocation firms have in -house property management services. The two quotes received include quotes for p roperty mana ement services from sub - contracted property management companies. 7 Motion by Second by To: I: \RFA \PLANNING \Livable Communities \Bass Lake Road Apts \Q -R Selection of a relocation firm for the bass lake road apartments.doc Request for Action Page 2 August 27, 2007 Staff sent the RFQ to four relocation firms and received responses from two firms. The following table outlines the details of the RFQ responses: Please note that the quotes include rate sheets for relocation services. As anticipated, Evergreen Land Services' hourly rates are between $75 and $85 per hour. SRF Consulting Group's rates range from $53 to $170 per hour. Evergreen Land Services had originally provided a not to exceed amount for relocation services of $82,500 that estimates 25 hours of client services per unit. Evergreen recently provided a revised not to exceed quote at a much reduced price of $69,300 which now anticipates fewer hours on average per client for relocation services. SRF has provided a not to exceed amount for relocation services of $70,400, this calculates to approximately 20 hours for client services per unit. While staff is confident that both firms are well qualified and would provide excellent service, staff recommends that the Council select Evergreen Land Services. Evergreen has performed relocation services successfully in New Hope on previous projects and the firm's staff is very familiar with the community. In addition, in anticipation of this project Evergreen has been providing limited services at no cost to the city, such as talking with a few concerned tenants at the Bass Lake Road apartments. Staff believes that proper property management throughout the location process is paramount to the success of the relocation project. Neither firm that quoted for relocation services has in house property management services, therefore both propose to sub- contract that service. Evergreen has proposed to use ECDI Property Management Services at an estimated $4,750 per month and SRF proposes to use ROI Property, Inc. at an estimated $6,000 per month to provide property management services during the transition period. It is anticipated that these monthly costs will decline as tenants are relocated. Funding EDA funds will be used for relocation. The EDA might be able to seek reimbursement from funds generated by a TIF District in the project area. Recommendation Staff requests that the City Council select Evergreen Land Services to provide relocation services at the Bass Lake Road Apartments site. Staff also recommends that the Council discuss property management services if the city is going to be in the position of owning the property before it is vacated. Quote Name Response Relocation Property management Ever reen Land Services Revised Quote $1,575 per unit $4,750 per month Evergreen Land Services Quote provided $1,875 per unit $4,750 per month SRF Consulting Group Quote provided $1,600 per unit $6,000 per month Short Elliott Hendrickson Inc. Letter, no quote -- -- Nationwide Group No response -- -- Please note that the quotes include rate sheets for relocation services. As anticipated, Evergreen Land Services' hourly rates are between $75 and $85 per hour. SRF Consulting Group's rates range from $53 to $170 per hour. Evergreen Land Services had originally provided a not to exceed amount for relocation services of $82,500 that estimates 25 hours of client services per unit. Evergreen recently provided a revised not to exceed quote at a much reduced price of $69,300 which now anticipates fewer hours on average per client for relocation services. SRF has provided a not to exceed amount for relocation services of $70,400, this calculates to approximately 20 hours for client services per unit. While staff is confident that both firms are well qualified and would provide excellent service, staff recommends that the Council select Evergreen Land Services. Evergreen has performed relocation services successfully in New Hope on previous projects and the firm's staff is very familiar with the community. In addition, in anticipation of this project Evergreen has been providing limited services at no cost to the city, such as talking with a few concerned tenants at the Bass Lake Road apartments. Staff believes that proper property management throughout the location process is paramount to the success of the relocation project. Neither firm that quoted for relocation services has in house property management services, therefore both propose to sub- contract that service. Evergreen has proposed to use ECDI Property Management Services at an estimated $4,750 per month and SRF proposes to use ROI Property, Inc. at an estimated $6,000 per month to provide property management services during the transition period. It is anticipated that these monthly costs will decline as tenants are relocated. Funding EDA funds will be used for relocation. The EDA might be able to seek reimbursement from funds generated by a TIF District in the project area. Recommendation Staff requests that the City Council select Evergreen Land Services to provide relocation services at the Bass Lake Road Apartments site. Staff also recommends that the Council discuss property management services if the city is going to be in the position of owning the property before it is vacated. Request for Action Page 3 August 27, 2007 Attachments 1. Resolution 2. RFQ 3. Quotes City of New Hope Resolution No. 07 -124 Resolution selecting Evergreen Land Services to provide relocations services in connection with the acquisition of the Bass Lake Road Apartment complex (Improvement Project no. 795) WHEREAS, the city is considering the acquisition of the Bass Lake Road apartment site for a redevelopment project area; and WHEREAS, in conjunction with the acquisition of the Bass Lake Road apartment site the city will be in need of relocation services for the current tenants; and WHEREAS, the city has worked in the past with Evergreen Land Services for the provision of relocation services; and WHEREAS, Evergreen Land Services has provided a not to exceed quote for the provision of relocation services of $69,300.00; and WHEREAS, it is staff's belief that Evergreen Land Services has the experience and qualifications to provide the requested relocation services in an expeditious and professional manner. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the city of New Hope that the necessary services during the relocation process for the Bass Lake Road Apartment site shall be provided by: 1. Evergreen Land Services for relocation at total cost not to exceed $69,300.00. 2. There should be no fee to the city if purchase does not occur. 3. Property management services for the site may be provided by ECDI Property Management Services (a sub - contractor for ELS) for a monthly cost not to exceed $4,750.00. Adopted by the City council of the city of New Hope, Hennepin County, Minnesota, this 27th day of August 2007. Attest: C C. City Clerk Mayor Dear NAME: Please find enclosed a Request for Quote (RFQ) for the relocation of tenants at the Bass Lake Road Apartments in New Hope and for property management services from the time the city takes ownership of the property until the building is vacant. The city is in the process of negotiating the purchase of the apartments. Please do not contact the owner or anyone at the properties prior to quote award from the city. Enclosed you will find a proposal cover sheet, description of work, and location map. We request that you submit a quote to the city by May 18, 2007, at 4:00 pm. The council plans to discuss this topic at its May 29 meeting, and may select a firm at that time. The timeline for the project will depend on the city and property owner reaching a purchase agreement. Please do not hesitate to contact me at 763- 531 -5196 or kberggren@ci.new- hope.mn.us with any questions. Sincerely, Kim Berggren Community Development Assistant Kirk McDonald Director of Community Development CC: Dan Donahue, City Manager Steve Sondrall, City Attorney Val Leone, City Clerk (Improvement project #795) Enclosure CITY OF NEW HOPE 4401 Xylon Avenue North ® New Hope, Minnesota 55428 -4898 ® www. ci.new- hope.mn.us City Hall: 763 -531 -5100 ® Police (non - emergency): 763 - 531 -5170 e Public Works: 763 - 592 -6777. TDD: 763- 531 -5109 City Hall Fax: 763 - 531 -5136 ® Police Fax: 763 - 531 -5174 . Public Works Fax: 763 - 592 -6776 REQUEST FOR QUOTES (RFQ) Relocation of tenants and property management Bass Lake Road Apartments City of New Hope, Minnesota City of New Hope Attn.: Kim Berggren 4401 Xylon Avenue North New Hope, MN 55428 Dear Council Members: RFQ Due 5/18/07 @ 4 pm The undersigned, having studied the attached description of work, being familiar with all factors and other conditions affecting the work and cost thereof, hereby proposes to furnish everything necessary to complete the project in accordance with the attached description of work. In submitting this quote proposal it is understood that the city retains the right to reject any and all quotes and to award the quote in the best interests of the city. It is also understood that quotes may not be withdrawn for a period of 30 days after the deadline date on this request for proposal quote form. Respectfully submitted, Firm Agent Address Email address Printed Name of Agent Telephone No. Date Estimate ($) Not to exceed ($) Professional relocation services per unit for 44 units Property management services per month 1011MM In submitting this quote proposal it is understood that the city retains the right to reject any and all quotes and to award the quote in the best interests of the city. It is also understood that quotes may not be withdrawn for a period of 30 days after the deadline date on this request for proposal quote form. Respectfully submitted, Firm Agent Address Email address Printed Name of Agent Telephone No. Date Description of Work Project Description• The city of New Hope is seeking quotes from professional firms for the relocation of the tenants at the Bass Lake Road Apartments (8420 Bass Lake Road and 8401, 8411, and 842158th Avenue North). The Bass Lake Road Apartments is comprised of five 12 -unit buildings on separate parcels of land; however, the 8400 Bass Lake Road building is currently vacant because of unsafe living conditions. The city estimates that 44 of the 60 units in the complex are currently occupied. Half the units in the complex are one - bedroom units and the other half are two - bedroom units. The city would like to work with a relocation firm that can also provide professional property management services from the time the city takes possession of the property until the buildings are vacant. Property management services would include rent collection, payment of bills, and routine building /property maintenance activities. The city would be open to the relocation firm sub - contracting this work to a professional property management company. Project Timeline: The city is in the process of negotiating the purchase of the apartments. If an agreement is reached with the current property owner, the closing will occur within 30 days of that date and the city will proceed with relocation immediately following closing. At this time, it is anticipated that relocation would occur late summer or fall of this year. RFO Submission Materials: All quotes are to be received at City Hall in sealed envelopes by Friday, May 18 at 4 pm and should include the following information: • Completed RFQ Proposal Cover Sheet • Relocation services • Qualifications • Summary of services • Estimate for professional relocation services (per unit) • A "not to exceed" figure for the relocation of 44 units • Hourly rate schedule for professional services Property management services • Description of ability and experience providing property management services • Summary of services • Estimate of cost per month for property management services Contact information for at least two references related to projects that are similar in size and scope to this project, and who may be contacted by city staff. At this time, the city is only seeking an estimate for professional services and is not seeking an estimate for relocation payments to the tenants. City Contact. Questions may be directed to Kim Berggren, Community Development Assistant, at 763- 531 -5196 or kberggren @ci.new- hope.mn.us Attachment Property location/information sheet Lt � t � *�� Y 564 Ay .,t .: * 4 4 I :i. i r : • 9 E o m r` ti r N � N tt) tca Lr) LO I 'D y O O O b r4 m UY � z z z 94 P4 ..�G b r-+ o o a C 0�0 0�0 00 0�0 o�p 0 August 21, 2007 Curtis Jacobsen City of New Hope Community Development Specialist 4401 Xylon Ave. No. New Hope, MN 55428 evergreen LAND SUBJECT: Revised estimate for the relocation services and professional services for the Bass Lake Road Apartments Dear Mr. Jacobsen. Evergreen Land Services Company (ELS) is pleased to present a revised estimate for relocation services to assist the City of New Hope in the relocation of the tenants of the Bass Lake Road Apartments. ELS has been serving municipal and private clients with these types of projects for over 30 years. ELS is sufficiently staffed to handle this project and complete the relocation within the time frame necessary. All relocation services will be performed under the guidelines set by the Uniform Relocation Assistance and Real Property Acquisition Act of 1970 as amended. I am re- submitting a bid for our services necessary to assist and relocate the tenants of the Bass Lake Road Apartments. This amount is based on the amount of time I feel our relocation staff would need to provide relocation services. I have previously enclosed our qualifications, resumes and past work experience and our rate sheet. Since our first proposal, new condemnation laws have affected the relocation industry. Also since our first proposal, I have had our staff do some preliminary groundwork and research for the Bass Lake Road Apartment project, in the hope that we would be successful in getting the project. SERVICES COMP Appraisal, Acquisition and Relocation Specialists 4131 Old Sibley Memorial Highway Suite 201 Eagan, MN 55122 651- 882 -0200 888- 411 -1134 Fax: 651-882-6564 Due to the fact that we were able to gather this useful information and data prior to the project, I have lessoned our original estimate to $1,575.00 per tenant. Evergreen will still provide all of the following services as stated in the earlier proposal. Relocation Services The project objective will be to assist the impacted residential tenants, which are eligible for assistance under the federal guidelines in relocating to adequate replacement accommodations as quickly as possible. In addition, ELS can assure that this project will be operated in accordance with the "Uniform Act" to maxiinize federal participation. All tenants will be treated in a just manner and receive adequate compensation under the applicable guidelines. ELS will operate a cost effective and efficient program. We will make a concerted effort to find workable solutions to all problems related to the relocation process and assist in the policy and procedure guidelines to better meet the needs of the City of New Hope and the displacees involved. We would anticipate the usual range of difficulties and probably some new challenges. We have the capabilities to address all of these issues. Relocation assistance services include the following: ® Initial meeting with the staff of the City of New Hope to discuss project coordination and procedures; meetings with the public and occupants to discuss and provide written general information on relocation benefits, documentation requirements, and the process applicable to each of their situations. • Determine needs and preferences for the move and replacement location for the owners and occupants. Explain relocation benefits, the process involved with relocation, and the payment documentation requirements. • Offer advisory services regarding the move, explanations of relocation benefits and procedures, and other assistance as necessary. • Preparing the required General Information Notice, Notices of Eligibility for Relocation Assistance, and 90 -day and 30 -day Notices to Vacate per the relocation regulations, for the staffs review and signature. • Assisting the displaced occupants in identifying and docurnenting eligible, reimbursable relocation costs and confirming the submitted costs are reasonable and necessary per the regulations. Coordinate and secure competitive moving bids. • Provide referrals to available replacement properties. Preparing claims for relocation payment and making recommendations to the City of New Hope regarding the eligibility of relocation benefits requested by the displaced occupants. Throughout the project, addressing questions and concerns of the displaced occupants, and advising the occupants of their rights and obligations in the relocation process. • Throughout the project, reviewing the project /relocation status and reviewing any questions and concerns. Document and close out file once all relocation benefits are given. This list of tasks is not all- inclusive but our activities will comply with Minnesota Statute and Uniform Act regulations and will include all steps required in the process and additional steps as may be helpful. All written and oral communication will be documented in each file. We bill at an hourly rate of $75.00 per hour for our Relocation Consultant and $85.00 per hour for our Relocation Manager. The average relocation of a residential tenant takes approximately 20 to 25 hours. Below is an estimate for the total relocation project. We are basing our estimate on the assumed 44 units. We understand that there is one vacant building and possible other vacancies. Evergreen Land Services estimates the cost for our relocation services to assist in the Bass Lake Road Apartments relocation project to be a not to exceed amount of $69,300.00 The cost per unit would be approximately $1,575.00 Property Management Services I have also contacted numerous property management service firms. I spoke with Erik Veblen of ECDI Property Management Services. He would be available and gave me a quote from his company for the following: I .) General Management of the property. 6% of monthly collected rents. -This would include rent collection and tenant management. - Example would be (44 units at $750.00 equals $33,000.00 x .06% or $1,980.00 /per month. - The Bass Lake Road apartments have one and two bedroom units. Rents a year ago were approximately $615.00 /per month for the one - bedroom units and $750.00 /per month for the two- bedroom units. -This figure will obviously go down as the units are vacated. 2.) Interior and exterior maintenance for all the buildings. $1,690.00 /per month. 3.) Regular and emergency maintenance. $1.100.00 /per month avg. - These services would include regular facility repairs, including plumbing, electrical, mechanical and other routine repair service. -This will billed on an hourly basis of $40.00 /per hour. This arnount will also vary as the building becomes vacant The City of New Hope should figure on approximately $4,500.00- $5,000.00 per month for property managements services. If you have any questions or need any additional infonnation, please do not hesitate to give me a call at (651) 882 -0200. We look forward to continue working with the City of New Hope again. Sincerely, Steven Carlson Relocation Manager Encl. REQUEST FOR QUOTES (RFQ) Relocation of tenants and property management Bass Lake Road Apartments City of New Hope, Minnesota City of New I Attn.: Kim Berggren 4401 Xylon Avenue North New Hope, MN 55428 Dear Council Members: RFO Due 5/18/07 @ 4 pm The undersigned, having studied the attached description of work, being familiar with all factors and other conditions affecting the work and cost thereof, hereby proposes to furnish everything necessary to complete the project in accordance with the attached description of work. In submitting this quote proposal it is understood that the city retains the right to reject any and all quotes and to award the quote in the best interests of the city. It is also Understood that quotes play not be withdrawn for a period of 30 days after the deadline date on this request for proposal quote form. Respectfully submitted, Evergreen Land Services Firm Steven Carlson Agent 4131 Old Sibley Memorial Hwy, Eagan, MN 55122 ' :S-/ t-- +Armor' 15 C Printed Name of Agent #201 651 - 882 -0200 Address scarlson @elscoe net Email address Telephone No. May 14, 2007 Date May 14, 2007 Kim Berggfen City of New Hope Community Development Assistant 4401 Xylon Ave. No. New Hope, MN 55428 SUBJECT: Estimate for the relocation services and professional services for the Bass Lake Road Apartments Dear Ms. Berggren. Evergreen Land Services Company (ELS) is pleased to present the following proposal to assist the City of New Hope in the relocation of the tenants of the Bass Lake Road Apartments. ELS has been serving municipal and private clients with these types of projects for over 30 years. ELS is sufficiently staffed to' handle this project and complete the relocation within the time frame necessary. All relocation services will be performed under the guidelines set by the Uniform Relocation Assistance and Real Property Acquisition Act of 1970 as amended. I am submitting a bid for our services necessary to assist and relocate the tenants of the Bass Lake Road Apartments. This amount is based on the amount of time I feel our relocation staff would need to provide relocation services. I have also enclosed our qualifications, resumes and past work experience and our rate sheet. SERVICES COMPANY Appraisal, Acquisition and Relocation Specialists 4131 Old Sibley Memorial Highway Suite 201 Eagan, MN 55122 651 -882 -0200 888 -411 -1134 Fax: 651-882-6564 • Assisting the displaced occupants in identifying and documenting eligible, reimbursable relocation costs and confirming the submitted costs are reasonable and necessary per the regulations. Coordinate and secure competitive moving bids. • Provide referrals to available replacement properties. • Preparing claims for relocation payment and making recommendations to the City of New Hope regarding the eligibility of relocation benefits requested by the displaced occupants. • Throughout the project, addressing questions and concerns of the displaced occupants, and advising the occupants of their rights and obligations in the relocation process. • Throughout the project, reviewing the project /relocation status and reviewing any questions and concerns. • Document and close out file once all relocation benefits are given. This list of tasks is not all- inclusive but our activities will comply with Minnesota Statute and Uniform Act regulations and will include all steps required in the process and additional steps as may be helpful. All written and oral communication will be documented in each file. We bill at an hourly rate of $75.00 per hour for our Relocation Consultant and $85.00 per hour for our Relocation Manager. The average relocation of a residential tenant takes approximately 25 hours. Below is an estimate for the total relocation project. We are basing our estimate on the assumed 44 units. We understand that there is one vacant building and possible other vacancies. Evergreen Land Services estimates the cost for our relocation services to assist in the Bass Lake Road Apartments relocation project to be a not to exceed amount of $82,500.00 The cost per unit would be approximately $1,875.00. Relocation Services The project objective will be to assist the impacted residential tenants, which are eligible for assistance under the federal guidelines in relocating to adequate replacement accommodations as quickly as possible. In addition, ELS can assure that this project will be operated in accordance with the "Unifonn Act" to maximize federal participation. All tenants will be treated in a just manner and receive adequate compensation under the applicable guidelines. ELS will operate a cost effective and efficient program. We will make a concerted effort to find workable solutions to all problems related to the relocation process and assist in the policy and procedure guidelines to better meet the needs of the City of New Hope and the displacees involved. We would anticipate the usual range of difficulties and probably some new challenges. We have the capabilities to address all of these issues. Relocation assistance services include the following: • Initial meeting with the staff of the City of New Hope to discuss project coordination and procedures; meetings with the public and occupants to discuss and provide written general information on relocation benefits, documentation requirements, and the process applicable to each of their situations. • Determine needs and preferences for the move and replacement location for the owners and occupants. Explain relocation benefits, the process involved with relocation, and the payment documentation requirements, • Offer advisory services regarding the move, explanations of relocation benefits and procedures, and other assistance as necessary. • Preparing the required General Information Notice, Notices of Eligibility for Relocation Assistance, and 90 -day and 30 -day Notices to Vacate per the relocation regulations, for the staffs review and signature. Property Management Services I have also contacted numerous property management service firms. I spoke with Erik Veblen of ECDI Property Management Services. He would be available and gave me a quote from his company for the following: 1.) General Management of the property. 6% of monthly collected rents. -This would include rent collection and tenant management. - Example would be (44 units at $750.00 equals $33,000.00 x .06% or $1,980.00 /per month. - The Bass Lake Road apartments have one and two bedroom units. Rents a year ago were approximately $615.00 /per month for the one - bedroom units and $750.00 /per month for the two- bedroom units. -This figure will obviously go down as the units are vacated. 2.) Interior and exterior maintenance for all the buildings. $1,690.00 /per month. 3.) Regular and emergency maintenance. $ L 100.00 /per month avg. - These services would include regular facility repairs, including plumbing, electrical, mechanical and other routine repair service. -This will billed on an hourly basis of $40.00 /per hour. This amount will also vary as the building becomes vacant The City of New Hope should figure on approximately $4,500.00 - $5,000,00 per month for property managements services. If you have any questions or need any additional information, please do not hesitate to give me a call at (651) 882 -0200. We look forward to continue working with the City of New Hope again. Sincerely, Steven Carlson Relocation Manager Encl. Steven Carlson Vice President Relocation Manager Tel: (651) 882-0200 Fax: (651) 882-6564 Cell: (612) 875-3467 Email: scarlson@elsco.net Steven has been a member of the Evergreen Land Services team for over ten years. Steven's responsibilities as a Relocation Manager have included: meeting with the displacee, explaining the relocation process, the benefit the individual or business will receive and document preparation, and all other related services for multiple state, county and municipal agency's. Throughout the entire project, managing the other consultants and assisting them with their relocations as needed. He has been a presenter at numerous conferences including Mn/DOT's annual Right Of Way Professionals Conference. Steven holds a Minnesota Real Estate License as well as a Minnesota Notary License. Hwy 62 / 35W Reconstruction, Mn /DOT • Federal Aid Project • Relocation Manager consulting on 55± parcel project including residential, tenant and business Prepared all relocation documents March 2004 — current Ramsey County CR J Reconstruction, Ramsey County • Federal Aid Project • Relocation Manager consulting on five residential relocations • Prepared all relocation documents • July 2005 — current Pelzer Street Reconstruction, City of Winona • Federal Aid Project • Acquisition Agent and Relocation Manager on 55± parcel project • Drafted conveyance documents • Successfully negotiated all parcels • October 2003 — December 2005 Industrial Park Redevelopment, City of Columbia Heights ' • Relocation Manager on 32± parcel project, all industrial type businesses • Prepared all relocation documents • Successfully relocated all businesses • July 2004 — January 2005 evergreen Land Services Scott Means 7 3 r7 - " Relocation Consultant Tel: (651) 882-0200 Fax: (651) 882-6564 Cell: (612) 875-3467 Email: Scottm@elsco.net Scott has been a member of the Evergreen Land Services team for five years. Scott's duties as an Relocation Consultant have included: meeting with the displacee, explaining the relocation process, the benefit the individual or business will receive and document preparation, and all other related services for multiple state, county and municipal agency's. Scott holds a Minnesota Real Estate License as well as a Minnesota Notary License. Hwy 62 / 35W Reconstruction, Mn /DOT • Federal Aid Project • Relocation Consultant on 55± parcel project including residential, tenant and business • Prepared all relocation documents • March 2004 — current Pelzer Street Reconstruction, City of Winona • Federal Aid Project • Relocation Consultant on 55± parcel project including residential, tenant, business and mobile homes • Prepared all relocation documents • Successfully relocated all parcels • October 2003 — December 2005 Industrial Park Redevelopment, City of Columbia Heights • Relocation Consultant on 32± parcel project, all industrial type businesses • Prepared all relocation documents • Successfully relocation all businesses • July 2004 — January 2006 Coon Rapids Boulevard Redevelopment Project, City of Coon Rapids • Relocation Consultant on 16± parcel project including businesses owners, businesses tenants and homeowners • Prepared all relocation documents • Successfully relocation all businesses • October 2002 — November 2004 evergreen Land Services City of New Hope, Minnesota Livable Communities, East Winnetka Area Kirk McDonald, Director of Community Development, 763-531-5119 • Relocated 27 homes and businesses o 15 homes o 12 businesses • Completed 2005 Highway 62/Crosstown Project, Mn/DOT Highway 62 / Interstate 35W Reconstruction John Griffith, Minnesota Department of Transportation, 651-582-1206 Rick Brown, SRF Consulting, 763-475-0010 Lisa Beckman, SRF Consulting, 763-475-0010 • Relocation of 41 tenants /homes /businesses o 22 Homes o 18 Tenants o One business • Project is currently being worked on City of St. Louis Park, Minnesota Park Commons Redevelopment Tom Harmening, Director of Community Development, 952-924-2580 Relocated 47 tenants /homes /businesses o 30 commercial businesses, o 15 residential properties o 2 tenants Completed 2002 City of Winona, Minnesota Petzer Street Reconstruction Judy Bodway, City of Winona, Director of Economic Development 507-457-82 Terry Ragan, Bonestroo Rosene Anderlik Et Associates, 507-529-6023 • Performing Appraisal Review, Acquisition Et Relocation Services • Acquisition of approximately 55 parcels, consisting of residential homes, one business and two apartment buildings, 21 are total take and the remainder are partial acquisitions • Relocation of approximately 20 residential homes, one trailer park (16 mobile homes), one real estate office, and seven tenants • Completed 2006 Project For Pride and Living Margaret Metzdorff, Project Manager, 612-874-3334 • Relocation of 38 lower income tenants and families • Numerous meetings with each tenant • Had to come up with creative ways to find decent, safe it sanitary housing • Provision of transportation • Work performed in Minneapolis, Minnesota • Completed 2001 Il '� � EVERGREEN LAND SERVICES COMPANY MANAGEMEN Manager/Consultant RELOCATION SERVICES Relocation Manager Relocation Consultant ACQUISITION SERVICES Acquisition Manager Acquisition Agent APPRAISAL SERVICES Appraisal Manager Appraiser CLERICAL Typist, Clerical EXPENSE Vehicle mileage allowance Per Diem & Expenses $85.00 per hour $85.00 per hour $75.00 per hour $85.00 per hour $75.00 per hour $85.00 per hour $75.00 per hour $40.00 per hour $0.485 per mile Actual costs For miscellaneous costs: Maps, copies of documents, expendable material, recording fees, subcontractor or other costs required to complete projects. REQUEST FOR QUOTES (RFQ) Relocation of tenants and property management Bass Lake Road Apartments City of New Hope, Minnesota City of New Hope At n.: Kim Berggren 4401 Xylon Avenue North New Hope, MN 55428 Dear Council Members: RFQ Due 5/18/07 @ 412m The undersigned, having studied the attached description of work, being familiar with all factors and other conditions affecting the work and cost thereof, hereby proposes to furnish everything necessary to complete the project in accordance with the attached description of work. In submitting this quote proposal it is understood that the city retains the right to reject any and all quotes and to award the quote in the best interests of the city. It is also understood that quotes may not be withdrawn for a period of 30 days after the deadline date on this request for proposal quote form. Respectfully submitted, SRF Consulting Group, Inc Fir Agent -/ Address khelvey @srfconsulting.com Email address Ken Helve_y Printed Name of Agent z63 475-0010 Telephone No. May 17, 2007 Date Professional relocation services I Property management services In submitting this quote proposal it is understood that the city retains the right to reject any and all quotes and to award the quote in the best interests of the city. It is also understood that quotes may not be withdrawn for a period of 30 days after the deadline date on this request for proposal quote form. Respectfully submitted, SRF Consulting Group, Inc Fir Agent -/ Address khelvey @srfconsulting.com Email address Ken Helve_y Printed Name of Agent z63 475-0010 Telephone No. May 17, 2007 Date Ms. Kim Berggren Community Development Assistant CITY OF NEW HOPE 4401 Xylon Avenue New Hope, MN 55428 Dear Ms. Berggren: SUBJECT: PROPOSAL FOR RELOCATION SERVICES FOR BASS LAKE ROAD APARTMENTS Thank you for the opportunity to submit a proposal to provide relocation services for the City of New Hope. It would be a pleasure to work with you. SRF has established a 40 -year tradition of service to clients across the Midwest and provides comprehensive relocation services. Our right -of -way and relocation specialists pride themselves on their ability to listen and communicate, which enables both the acquiring agency and the displaced occupants to go through a potentially difficult time with better understanding and cooperation. In addition, SRF's relocation specialists have significant experience working on similar projects and have successfully worked with the City and EDA of Brooklyn Park, HRA and City of Richfield, and Minneapolis CPED, on numerous occasions. It is our understanding that there are 44 apartment units in the buildings that will require relocation and property management services. For your review, we have attached a comprehensive scope of services. Schedule and Budget We propose to be reimbursed for our services on an hourly basis for the actual time expended. Other direct project expenses, such as printing, supplies, and reproduction, will be billed at cost, and mileage will be billed at the current allowable IRS rate for business miles. Based on our understanding of the project and scope of services, SRF's "not to exceed" figure for the relocation of 44 units is $70,400, which includes time and expenses. This equates to $1,600 per unit. Additional services that may be requested will be billed on the same time -and- expenses basis. Invoices are submitted on a monthly basis for work performed during the previous month, and payment is due within 30 days. SRF proposes to subcontract with ROI Properties, Inc. for the required property management services. The estimated fee for the property management services described in the scope of services is $1,500 per month per building (assuming four occupied buildings). This calculates One Carlson Parkway North, Suite 150 Case Plaza, One North Second Street Minneapolis, Minnesota 55447 -4443 s r f cons u l t i n g. c o m Fargo, North Dakota 58102 -4807 Tel: 763- 475 -0010 • Fax: 763- 475 -2429 Tel: 701- 237 -0010 • Fax: 701- 237 -0017 An Equal Opportunity Employer Ms. Kim Berggren -2- May 17, 2007 to $18,000 for the entire 90 days that ROI would be running the properties. The per unit estimate is $410 (assuming 44 units). It is understood that if the scope or extent of work changes or additional services are requested, the cost will be adjusted accordingly. Before any out -of -scope or additional work is initiated, however, we will submit a budget for the new work and will not begin work until we receive authorization from you. We will complete the work within a mutually agreed upon time schedule. SRF understands that the City is currently negotiating the purchase of the apartments, and relocation is anticipated in late summer or fall of 2007. Notice to Proceed A signed copy of this proposal or a separate letter of authorization either mailed or faxed to our office, will serve as our notice to proceed. We sincerely appreciate your consideration of this proposal and look forward to working with you on this project. Please feel free to contact us if you have any questions or need additional information. Sincerely, SRF CONSULTING GROUP, INC. �JLJ Ken Helvey Senior Ass ciate Approved: (signature) Name Title Date Matthew D. Hansen, PE, LS Principal This cost proposal is valid for a period of 90 days. SRF reserves the right to adjust our cost estimate after 90 days from the date of this proposal. Relocation Services 1. The Consultant will distribute an informational booklet on residential relocation assistance and all appropriate forms and data to each resident expected to be displaced. At this time the Consultant will: • Obtain a signed receipt for the informational booklet provided by the Consultant in accordance with applicable regulations. • Explain the residential relocation program and the resident's responsibilities to receive benefits. • Explain how to receive various kinds of assistance in finding replacement housing. • Survey the resident's relocation needs. 2. Upon initiation of negotiations for the project site, the Consultant will: • Analyze existing data to determine eligibility of the resident's relocation expenses for compensation. • Assist the resident in determining the most advantageous payment alternatives to claim and provide further instructions on how to proceed. 3. The Consultant will provide the following assistance with Moving Expense Claims: • Advise the resident of the three types of payment for moving expenses. • Review the fixed moving schedule and advise the resident of the benefits under the fixed payment move costs option. • If choosing the actual move costs option, advise the resident on procedure to obtain required bids. • Assist the resident when necessary in preparing moving specifications. • Act when appropriate as agent in regard to accepting bids. • Analyze the bids to determine their reasonableness. • Notify the resident of the low acceptable bids. • When appropriate inspect the move of personal property while in progress. • Assist the resident in assembling all invoices, paid receipts, and other documentation necessary to substantiate the relocation claim. • When necessary analyze billings to determine their reasonableness. • Assemble the appropriate claim forms and documentation for signature and submission to the Contractor for approval. 4. The Consultant will provide the following assistance with Replacement Housing Payment: • Determine eligibility of the resident to receive this relocation payment. • Survey the housing market and prepare a comparable housing analysis to determine the limit on amount of payment. • Analyze the replacement housing to determine its eligibility of payment. • Assemble the appropriate claim forms and documentation for signature and submission for approval. 5. Other Services • The Consultant shall prepare, at the City's request, the required and proper formats to be used by the City in notifying occupant being displaced about their relocation eligibility and benefits to which they may be entitled. The Consultant will also, upon the City's request, assist the City in the preparation of the required notices to vacate for delivery to the residents. • The Consultant shall search for replacement sites for the residents being displaced and refer suitable, comparable housing found to each resident. The Consultant shall expend appropriate and necessary time searching for such referrals, documenting all time expended. The Consultant does not warrant that suitable referrals will be found. 6. Recommendations. The Consultant will transmit to the City the relocation claim(s) for its action. Recommendations will include the amount of payment to be made and any special considerations. Recommendations will be made in a detailed written format satisfying required regulations. 7. In completing this Contract, the Consultant does not assume the responsibility for: • Accounting and record keeping (except as related to the specific claim). • Arrangement of real estate closings on replacement housing. • Payment for replacement housing appraisals and moving cost estimates and /or bids. • Work associated with a relocation grievance. Property Management Services The following scope of services for property management has been provided by ROI Properties: • Rent collection • Payments as directed • Lawn care and snow removal • Cleaning of common areas • Monthly operating statement per building. Information on ROI Properties' abilities and experience is provided as an attachment. Services NOT included in the property management scope include maintenance service calls for repairs. These charges will be based on a per service call basis at applicable rates for plumbers, electricians, or handymen. • -• r • i q ll • Principal $160 to $170 Senior Associate $118 to $160 Senior Right of Way Specialist $69 to $104 Right of Way Specialist $53 to $68 r • SRF is pleased to present the following references who can attest to the high quality of our work and dedication of our staff: Mr. Bruce Palmborg Community Development Director CITY OF RICHFIELD 6700 Portland Avenue South Richfield, MN 55423 612- 861 -9760 Mr. Jason Aardsvold CITY OF BROOKLYN PARK 5200 85th Avenue North Brooklyn Park, MN 55443 763- 493 -8087 KENNETH V. HELVEY AREAS OF EXPERTISE Senior Associate • Relocation Cost Estimates • Relocation Plans Ken has 13 years of acquisition and relocation experience. Prior . Negotiations for Property Acquisition to joining SRF, he was the owner of a Twin Cities -based . Partial & Total Take Acquisition relocation consulting firm. During his career, Ken has worked • Relocation Advisory Services closely with the Minnesota Department of Transportation, • Relocation Assistance Appeal Department of Housing and Urban Development and the U.S. Hearings & File Audits Army Corps of Engineers, as well as many local, municipal, • Property Management county and state agencies and non- profit associations. He is EDUCATION highly respected for his ability to successfully represent agencies B.A., Political Science, University of and assist home and business owners with the relocation Minnesota, 1992 process. Ken has successfully completed the acquisition and REGISTRATION negotiations for many residential and commercial parcels. Real Estate License SEAN C. INGVALSON AREAS OF EXPERTISE Senior Right of Way Specialist • Relocation Cost Estimates & Plans • Appraisal Coordination Sean has 11 years of acquisition and relocation experience. Partial & Total Take Acquisition During his career, he has worked closely with a wide range of . Relocation Advisory Services public clients, including the Minnesota Department of . Relocation Assistance Appeal Transportation, U.S. Army Corps of Engineers, and many local, Hearing & File Audits municipal, county and state agencies and non -profit • Industrial Relocations associations. Sean also holds a real estate license. EDUCATION B.S., Social Science, Winona State University, 1991 REGISTRATION Real Estate License MARISSA MEDVED Right of Way Specialist Marissa has worked at SRF Consulting Group for six years. She graduated in June of 2001 from Dunwoody Institute with an A.A.S degree. She first worked as a civil engineering technician and is now working in our Right of Way Group. Marissa is currently working on the Huntington Pointe relocation for the City of Brooklyn Park, which involves the relocation of tenants for 300 units. CHARENE KOSTRON Right of Way Assistant Charene recently joined SRF, working as a Right of Way Assistant. Her duties include document preparation and organization, maintaining client and customer files, and various field work. Charene has a Bachelor's degree from National College. Her expertise in customer service helps client feels comfortable and at ease in any situation. w` s; May 8, 2007 RE: Tenant Relocation and Property Management Services City of New Hope Mr. Kirk McDonald Director of Community Development City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 -4898 Dear Mr. McDonald: The City of New Hope's need to relocate the tenants and manage the Bass Lake Road Apartments will require the expertise of an experienced property management firm. Although Short Elliott Hendrickson Inc. (SEH®) will continue to offer its architectural, engineering and specialty expertise to the City of New Hope, we must respectfully decline the opportunity to present a proposal for this project. Although we offer a broad range of multi disciplined consulting services, we do not possess the necessary qualifications as a property management firm. We wish you all the best in your search for a qualified property management firm. We look forward to continuing our relationship with the City of New Hope and ask that you keep us in mind for future m SrNom#nunity Development Manager Short Elliott Hendrickson inc., 3240 East River Road NE, Suite 102, Rochester, MN 55906 -3422 Mr. Steve Carlson Evergreen Land Services Company 4131 Old Sibley Memorial Highway Suite 201 Eagan, MN 55122 Subject: Bass Lake Road Apartments Dear Mr. Carlson: Pursuant to the New Hope City Council action on August 27, the Council approved a resolution selecting Evergreen Land Services to provide relocation services in connection with the acquisition of the Bass Lake Road Apartment complex for a total cost not to exceed $69,300. The City Council tentatively approved management services by ECDI Property Management Services for a monthly cost not to exceed $4,750 with the understanding that staff would complete additional research and bring this matter back to the Council for further direction. If you have any questions, please contact Curtis Jacobsen at 763 -531 -5137 or me at 763 -531 -5119. Sincerely, Kirk McDonald Community Development Director Cc: Curtis Jacobsen, Community Development Specialist Roger Axel, Building Official Chuck Tatro, General Inspector Valerie Leone, City Clerk (Improvement Project 795) CITY OF NEW HOPE 4401 Xylon Avenue North . New Hope, Minnesota 55428 -4898 s www. ci.new- hope.mn.us City Hall: 763 -531 -5100 ® Police (non - emergency): 763 - 531 -5170 e Public Works: 763 - 592 -6777 ® TDD: 763- 531 -5109 City Hall Fax: 763 - 531 -5136 + Police Fax: 763 - 531 -5174 ® Public Works Fax: 763 - 592 -6776 COUNCIL Originating Department Approved for Agenda Agenda Section Development Community Development August 27, 2007 and Plannin Item No. By: Curtis Jacobsen, CD Specialist B 8.4 Resolution authorizing award for inspection services related to pre- demolition building survey for the Bass Lake Road Apartments nroiect. ..H -'q Vii"_ Requested Action The City Council is requested to approve a resolution to award inspection services related to a pre - demolition building survey for the Bass Lake Road Apartments project to the lowest responsible bidder, per quotes received on August 22, 2007. Policy /Past Practice It is the city's policy and past practice to solicit quotes for specific services not readily available through current staff or appointed consultants. Environmental services are needed during the due diligence period prior to the purchase of the Bass Lake Road Apartments. Background On August 13 the City council was notified that their purchase offer on the Bass Lake Road Apartment complex had been accepted. The next step in the acquisition process is the city's due diligence prior to closing which includes having an environmental survey of the buildings to assess the potential for environmental hazards in the buildings which could directly impact the cost of demolition and redevelopment. To meet the very rapid timeline that has been laid out leading to the closing it has been necessary to solicit quotes and present the quotes at the meeting tonight. The requests for quotes were sent out by e -mail to five environmental firms on August 16 requesting responses by August 22. The quotes will be analyzed on August 23 and 24 and presented /provided to the City Council along with the resolution at the meeting on August 27th. Funding The funds for this testing process will be taken from the EDA. Potentially the city will be able to reimburse themselves for this exvenditure should a T.I.F District be used in coniunction with the nroiect. Motion by (',.� Second by To: 1 _l ) ( . 7' /:? 5__ City of New Hope Resolution No. 2007 -125 Resolution authorizing award for inspection services related to pre - demolition building survey for the Bass Lake Road Apartment project (Improvement Project No. 795) WHEREAS, the City of New Hope is considering the acquisition of the Bass Lake Road Apartment complex; and WHEREAS, prior to purchasing the property and as part of the city's due diligence related to the purchase the property the city is in need of environmental testing services; and WHEREAS, city staff have solicited quotes for environmental testing services; and WHEREAS, the city has received quotes for environmental testing services from five qualified firms to do the requested work specified by the city. NOW, THEREFORE BE IT RESOLVED, by the City Council of the city of New Hope, that Applied Environmental Testing (AES) is hereby awarded the environmental testing for the Bass Lake Road Apartment complex per their quote for services in the amount of $3,755.00 for the initial phase and potentially a final survey amount of $2,515.00 for a total not to exceed amount of $6,270.00 Efforts shall be made to minimize the city's environmental testing costs. Adopted by the City Council of the city of New Hope, Hennepin County, Minnesota, this 27th day of August 2007. REQUEST FOR QUOTE PRE - DEMOLITION BUILDING SURVEY Properties List Mr. Curtis Jacobsen City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 Dear Council Members: Quote Due 8/22/07 The undersigned, having studied the attached description of work, being familiar with all factors and other conditions affecting the work and cost thereof, hereby proposes to furnish all labor, tools, materials, skills, equipment and all else necessary to complete the project in accordance with the attached description of work. Hourly ACM Analysis Lead Paint Residential Labor Rate Rate Rate Apartment Buildings (Sampling) (Per Sample) (Per Sample) Bulk Asbestos and Environ- mental Hazards Survey Sampling $ $ Ea (In a written narrative please specify the total number of samples for each particular sample group to be collected and the total time to collect said samples.) Report preparation $ Cost estimating $ 8400 Bass Lake Road 8401 Bass Lake Road 8411 Bass Lake Road 8420 Bass Lake Road 8421 Bass Lake Road NEW HOPE, MINNESOTA Total hours required Estimated Total Cost $ In submitting this bid it is understood that the owner retains the right to reject any and all bids and to waive irregularities and informalities therein and to award the contract in the best interests of the owner, and that the bidder accepts the general terms of the standard City contract. It is understood that bids may not be withdrawn for a period of 60 days after the date on the quote form. Respectfully Submitted, Printed Name of Signer Address Telephone No. City, State & Zip Code Date DESCRIPTION OF WORK SCOPE OF WORK: The contractor is to perform sampling and reporting of asbestos - containing materials (ACMs), both friable and non - friable, an itemization and location of suspected PCB - containing light ballasts, mercury switches, fluorescent bulbs, thermostats, batteries, and lead - containing paint at the property described above. The purpose of the sampling is to provide relevant and required information to environmental abatement contractors, who will perform removal of hazards at a later date but prior to demolition. Evaluation for the presence of asbestos - containing materials shall be all - inclusive, and the City recognizes that it is likely to be necessary to invade wall, floors, ceilings and roofing materials to obtain all relevant samples for testing. The ACM survey should include an assessment of friable and non - friable interior and exterior building materials including, but not limited to, exterior siding, roofing, pipe insulation, floor tiles, ceiling tiles, and related mastics. The selected contractor shall, to the extent possible, minimize damage to the structure in obtaining such samples. In particular, if any damage to roofing materials needs to be done to obtain samples for testing, repairs will need to be made immediately by the contractor so that the roof remains intact and functional. For the purposes of disposal, all suspect light ballasts will be assumed to be PCB - containing unless clearly labeled otherwise. Only an inventory of suspect ballasts need be made under the scope of this project. An evaluation of potential lead paint hazards may be performed through either use of portable XRF or laboratory testing, but must meet general industry standards for detection levels and reporting. The abatement consultant is to provide cost estimates for the removal and disposal of hazardous materials and regulated materials, i.e. light bulbs, mercury switches, paint, etc. 2. PROTECT DESCRIPTION The five properties listed above are part of a redevelopment project undertaken by the City of New Hope, and a map of the properties is attached to this RFQ. The properties are in the process of being acquired by the City. The City will take possession of the properties approximately on October 10, 2007. All testing is to be completed and reported to the city during the city's due diligence period prior to closing. All of the properties have been used as rental apartment properties. Relevant copies of the completed appraisals for these properties are enclosed with this RFQ. 3. OWNER: The City of New Hope is designated as the Owner. 4. COMPLETION DATE: The contractor shall complete all inspection, testing, and reporting and the City be in possession of the report(s) fifteen (15) calendar days after Notice to Proceed. Separate, individual reports are to be completed for each building. 5. AWARD OF CONTRACT: Only one award will be made, that being the lowest total of all work listed as Estimated Total Cost. 6. INSPECTION: Eligible contractors must contact Curtis Jacobsen at the City of New Hope to arrange an on site inspection of currently vacant units. 7. QUOTE SUBMITTAL: Please fax or e -mail the completed first two pages of this Request for Quote and written narrative with signatures to: Curtis Jacobsen, City of New Hope, 4401 Xylon Avenue North, New Hope, MN 55428. Fax No.: 763 - 531 -5136 E -mail: cjacobsen @ci.new- hope.mn.us Item 8.4 To: Mayor Opem City Council Members Kirk McDonald, Acting City Manager From: Curtis Jacobsen, Community Development Specialist Date: August 27, 2007 Subject: Request for Quotes /Environmental Testing Services The following table summarizes the responses the city received to the Request for Quotes for environmental testing at the Bass Lake Road Apartment site. Quote Response to Experience Tests Name of Firm Price RFQ forms with firm Proposed Legend Technical Services, Inc. $4,570.00 Complete No 100 Asbestos and 5 Lead Paint Applied Environmental $6,270.00 Mostly complete Yes 200 Asbestos and Services (AES) 50 Lead Paint Pinnacle Engineering, Inc. $7,177.50 Complete Yes 200 Asbestos and 50 Lead Paint American Engineering $7,450.00 Mostly complete, felt Yes 200 Asbestos and Testing, Inc. one item 1 day of Lead was not applicable Paint testing Industrial Hygiene Services $18,000.00 Incomplete Yes 300 Asbestos and Corporation 120 Lead Paint Memo August 27, 2007 In order to get the most accurate cost estimate for the abatement work, getting additional samples, as is proposed by AES, is beneficial and should eliminate surprises of unknown hazardous materials during demolition. It should be noted that the work will be done on a time and material basis so the city will only be paying for the actual time spent and the sample analyzed. Recommendation Staff recommends that the Council approve the attached resolution selecting Applied Environmental Services (AES) to conduct environmental testing on the city's behalf at the Bass Lake Road Apartment complex. Attachments Resolution Quotes City Engineer e -mail 8 -24 -07 a , August 17, 2007 Mr. Curtis Jacobsen City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: Regulated Hazardous Materials Survey Demolition Cost Estimate 5 -12 Unit Apartments New Hope, MN Dear Mr. Jacobsen: s • r a* LEGEND TECHNICAL SERVICES, INC. (LEGEND) is pleased to submit this proposal concerning regulated hazardous materials surveys of five (5) 12 -unit apartment buildings located at 8400, 8401, 8411, 8420 & 8421 Bass Lake Rd. in New Hope, MN. It is LEGENDS understanding that the regulated hazardous materials survey is being conducted for future demolition of the buildings. 1.0 SCOPE OF WORK The scope of work we propose to perform is as follows: 1.1 Perform a complete asbestos survey of each building indicated above. Identify and sample materials suspect of containing asbestos throughout the buildings in question. Sampling will include destructive means to locate all suspect asbestos containing materials. Sample collection may include but is not limited to, floor tile /adhesives, ceiling tiles /panels, linoleum /adhesives, gypsum wall /ceiling board, ceiling textures, thermal system insulations, siding, etc. Note: LEGEND would prefer to collect roofing samples after buildings have been vacated so not to allow for any roof leaks. Analyze bulk samples collected for asbestos content using polarized light microscopy (PLM). Prepare a bulk sampling report identifying materials which contain asbestos, approximate quantities of asbestos containing materials, approximate asbestos containing materials removal costs, and generate drawings depicting locations of asbestos containing materials. 1.2 Perform a hazardous materials survey including mercury containing items such as thermostats, switches, fluorescent light bulbs, etc. along with PCB containing light ballasts, suspect PCB containing transformers, oil door closures, and other oil containing items. These regulated hazardous materials will be quantified and approximate quantities and locations will be noted along with estimating approximate costs for removal. PPLETON FARGO MOSINEE # PHOENIX ST. PAUL s TUCSON "Equal Opportunity Employer" 1.3 Perform a deteriorated lead based paint survey of painted surfaces. Any deteriorated paints observed on the site will be sampled and analyzed for lead content. Surfaces which are observed to be deteriorated will be included in the lead based paint inspection only. Bulk paint chip samples will be collected and submitted for analysis. • Generate a report identifying locations of deteriorated lead based paint and approximately quantify deteriorated lead based paint surfaces and estimate lead based paint stabilization costs. 2.0 METHODOLOGY 2.1 Asbestos Bulk Sample Analysis Asbestos bulk samples will be analyzed using PLM with dispersion staining techniques in accordance with Environmental Protection Agency (EPA) procedures. LEGEND is accredited under the National Institute for Standards and Technology (NIST) National Voluntary Laboratory Accreditation Program (NVLAP) for asbestos bulk analysis using PLM. 2.2 Lead Based Paint Anal Suspect deteriorating lead based paint will be analyzed by LEGEND's St. Paul laboratory by Inductively Coupled Argon Plasma (ICAP) using Method 6010 B. 3.0 4.0 FEE SCHEDULE The fee schedule for the hazardous materials survey is as follows: - Minnesota Accredited Asbestos Inspector - $ 65.00 /hour - Minnesota Certified Lead Risk Assessor - $ 65.00 /hour - PLM Bulk Sample Analysis - $ 15.00 /sample - Lead in Paint Analysis - $ 35.00 /sample - Mileage - $ 0.49 /mile The following are the cost estimates for the hazardous materials survey: - Hazardous Materials Survey /Office/Reporting - $ 2,795.00 - PLM Bulk Sample Analysis (estimate 100 samples) - $ 1,500.00 - Lead in Paint Analysis (estimate 5 samples) - $ 175.00 - Expenses - $ 100.00 SUBTOTAL - $ 4,570.00 Note: Any suspect unidentifiable hazardous materials (oils, debris, etc.) that will require additional laboratory analysis will be added as additional cost to the survey upon approval from the client. SCHEDULING/REPORTING LEGEND can begin the regulated hazardous materials survey with approximately 3 -days notice. This cost estimate is based on the assumption that all buildings are vacant. Reporting will be completed within approximately 10 working days from the time LEGEND receives analytical results. A single report will be generated for each 12 unit complex for a total of five final reports. Page 2 of 3 5.0 ACCEPTANCE Please indicate your acceptance of this proposal and general conditions by endorsing below and returning a copy to us. We appreciate the opportunity to submit this proposal and look forward to working with you on this project. Cordially, LEGEND TECHNICAL SERVICES, INC. 7 Corey Campbell Industrial Hygienist Signed Name Date Attachment: General Conditions Printed Name Title Page 3 of 3 REQUEST FOR QUOTE PRE - DEMOLITION BUILDING SURVEY Properties List 8400 Bass Lake Road 8401 Bass Lake Road 8411 Bass Lake Road 8420 Bass Lake Road 8421 Bass Lake Road NEW HOPE, MINNESOTA Mr. Curtis f acobsen City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 Dear Council Members: Quote Due 8/22/07 The undersigned, having studied the attached description of work, being familiar with all factors and other conditions affecting the work and cost thereof, hereby proposes to furnish all labor, tools, materials, skills, equipment and all else necessary to complete the project in accordance with the attached description of work. (In a written narrative please specify the total number of samples for each particular sample group to be collected and the total time to collect said samples.) Report preparation $ 65 Total hours required 43 Cost estimating $ 65 Estimated Total Cost $ 4,570.00 Hourly ACM Analysis Lead Paint Residential Labor Rate Rate Rate Apartment Buildings (Sampling) (Per Sample) (Per Sample) Bulk Asbestos and Environ- mental Hazards Survey Sampling $ 65 $ 15 $ 35 (In a written narrative please specify the total number of samples for each particular sample group to be collected and the total time to collect said samples.) Report preparation $ 65 Total hours required 43 Cost estimating $ 65 Estimated Total Cost $ 4,570.00 In submitting this bid it is understood that the owner retains the right to reject any and all bids and to waive irregularities and informalities therein and to award the contract in the best interests of the owner, and that the bidder accepts the general terms of the standard City contract. It is understood that bids may not be withdrawn for a period of 60 days after the date on the quote form. Respectfully Submitted, 7 Corey Campbell Printed Name of Signer 88 Empire Drive Address St. Paul MN 55103 City, State & Zip Code 651 - 221 -4064 Telephone No. 81707 Date DESCRIPTION OF WORK SCOPE OF WORK: The contractor is to perform sampling and reporting of asbestos - containing materials (ACMs), both friable and non - friable, an itemization and location of suspected PCB - containing light ballasts, mercury switches, fluorescent bulbs, thermostats, batteries, and lead - containing paint at the property described above. The purpose of the sampling is to provide relevant and required information to environmental abatement contractors, who will perform removal of hazards at a later date but prior to demolition. Evaluation for the presence of asbestos - containing materials shall be all - inclusive, and the City recognizes that it is likely to be necessary to invade wall, floors, ceilings and roofing materials to obtain all relevant samples for testing. The ACM survey should include an assessment of friable and non - friable interior and exterior building materials including, but not limited to, exterior siding, roofing, pipe insulation, floor tiles, ceiling tiles, and related mastics. The selected contractor shall, to the extent possible, minimize damage to the structure in obtaining such samples. In particular, if any damage to roofing materials needs to be done to obtain samples for testing, repairs will need to be made immediately by the contractor so that the roof remains intact and functional. For the purposes of disposal, all suspect light ballasts will be assumed to be PCB - containing unless clearly labeled otherwise. Only an inventory of suspect ballasts need be made under the scope of this project. An evaluation of potential lead paint hazards may be performed through either use of portable XRF or laboratory testing, but must meet general industry standards for detection levels and reporting. The abatement consultant is to provide cost estimates for the removal and disposal of hazardous materials and regulated materials, i.e. light bulbs, mercury switches, paint, etc. 2. PROTECT DESCRIPTION The five properties listed above are part of a redevelopment project undertaken by the City of New Hope, and a map of the properties is attached to this RFQ. The properties are in the process of being acquired by the City. The City will take possession of the properties approximately on October 10, 2007. All testing is to be completed and reported to the city during the city's due diligence period prior to closing. All of the properties have been used as rental apartment properties. Relevant copies of the completed appraisals for these properties are enclosed with this RFQ. 3. OWNER: The City of New Hope is designated as the Owner. 4. COMPLETION DATE: The contractor shall complete all inspection, testing, and reporting and the City be in possession of the report(s) fifteen (15) calendar days after Notice to Proceed. Separate, individual reports are to be completed for each building. AWARD OF CONTRACT: Only one award will be made, that being the lowest total of all work listed as Estimated Total Cost. 6. INSPECTION: Eligible contractors must contact Curtis Jacobsen at the City of New Hope to arrange an on site inspection of currently vacant units. T QUOTE SUBMITTAL: Please fax or e -mail the completed first two pages of this Request for Quote and written narrative with signatures to: Curtis Jacobsen, City of New Hope, 4401 Xylon Avenue North, New Hope, MN 55428. Fax No.: 763- 531 -5136 E -mail: cjacobsen @ci.new- hope.mn.us i rrmirm The &W survey will mcle de A the destru wive sampling required in the vacated aparmimts. This work would be much nxn efficient in a vwzt building that would only require am visit 93rf f,. Survey FAffmate- Inspectom 1 (2)-on sits+ 20 $1200 Sent By: Applied Environmental Sciences; 763 545 7883; Aug-22-07 14:12; Page 7/7 Inspec toM — FVPMUfio&rePOrts XRF analysis Asbestos analysis TOW • Fs imsted — we will bill for actual wmber an*zed. ll V" $480 SIO $805 15 If you have any que please call. Sent By: Applied Environmental Sciences; 763 545 7883; Aug-22-07 14:11; Page 2 REQUEST FOR Q.. UOTE BULV--A. � Ej. JI EXYAL VLNX47PYW�q RLTKNIN 84W Bass Lake Road 8401 Bass Lake Road 8411 Bass Lake Road 8420 Bass Lake Road 6421 Bass Lake Road rN 1144 (0) 2 F*iMW4C*Tr M I� # The undersigned, having studied the attached description of work, being familiar with all factors 7 7 attached description of work. M- 1 MIVIT KI-IRMI-M r1l A j""LVM* to waive irregulares and informalities therein and to award the contract in the best interests of the owner, and that the bidder accepts the general teryns • the standard City contract. 11 1!11111111 �Ijiipi 111 Hourly ACM Analysis Lead Paint Residential Labor Rate to Rate Apartment Buildings (Sampling) (Per Sample) (Per Sample) Bulk Asbestos and Environ- mental Hazards Survey Sampling $60 $11.50 $2.00 M- 1 MIVIT KI-IRMI-M r1l A j""LVM* to waive irregulares and informalities therein and to award the contract in the best interests of the owner, and that the bidder accepts the general teryns • the standard City contract. 11 1!11111111 �Ijiipi 111 ;mnt 8y: Applied Environmental Sciences; 763 545 7883; Aug-22-07 14:11; Page 3 Respectfully Submitted, Golden Valley, MN 55426 City, State & Zip Code Pat Dfflartolcmeo ' Telephone No. Sent By: Applied Environmental Sciences; 763 545 7883; Aug -22 -07 14:12; Page 4 W"'3-WVQ§1"J*UkM*)*1 I. KM QF WORK The contractor is to perform sampling and reporting of asbestos - containing materials (ACMs), both friable and non-friable, an itemization and location of suspected PCB- containing light ballasts, mercury switches, fluorescent bulbs, thermostats, batteries, and Lead- containing paint at the property described above. The purpose of the sampling is to provide relevant and required hiformatim to environmental abatement contractors, who will perform removal of hazards at a later date but prior to demolition. For the purposes of disposal, all suspect light ballasts will be assumed to be PCB-containing unless clearly labeled otherwise. Only an inventory of suspect ballasts need be made under the scope • this project .qxr fW•-♦ Tel ne'T • reporting. 2. PRQN= D The five properties listed above are part of a redevelopment project undertaken by the City of New Hope, and a map of the properties is attached to this RFQ. The properties are in the pmeess ■ being acquired • the City. The City will take possession of the properties approximately on October 10, 2007. All of the properties have been used as rental apartment properties. Relevant copies of the completed appraisals for these properties are enclosed with this RFQ. Sent By: Applied Environmental Sciences; 763 545 7883; Aug-22-07 14:12; Page 5/7 =77 77-IM! the City be in possession of the report(s) fifteen (15) calendar days after Notice to Proceed. Separate, individual reports are to be completed for each building. V. X2 CQNTRACT: Only one award will be made, that being the lowest total of all work listed as Estimated Total Cost. 6. INSP&MM Eligible contractors must contact Curtis Jacobsen at the City of New Hope t arrange an on site inspection of currently vacant units. 7. QUOTE SUBMI]aAL: Please tax or e-mail the completed first two pages of this Request for Quote with signatures to Curtis Jacobsen,, City of New Hope, 4401 Xylon Avenue Nortk New Hope, MN 55428. Fax No.: 763-531 or E-mail: cjacobsen tit d-new-hope.mmus Curtis Jacobson City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: Pre - Demolition Survey Bass Lake Road, New Hope, MN Pinnacle Project No.: P107283.000 Dear Curtis: Pinnacle Engineering, Inc. 11541 95 Ave North Maple Grove, MN 55369 1500 First Avenue Northeast Rochester, Minnesota 55906 Tel: 763 315 -4501 Fax: 763 315 -4507 www.pinoeno.com Tel: 507 280 -5966 Fax: 507 280 -5984 Pinnacle Engineering, Inc. (Pinnacle) is pleased to provide the following proposal for a pre - demolition survey to be conducted at residential properties located at 8400,8401,8411,8420 and 8421 Bass Lake Road, New Hope, MN. Scope of Work We will conduct the survey in accordance with Minnesota Pollution Control Agency (MPCA) and local industry standards. A Pre - Demolition Survey is required by the MPCA prior to demolition of the site structure. All inspections shall be based upon readily accessible areas and equipment. Pinnacle will not demolition or otherwise alter covers to equipment, panels or actual building structures. The survey shall address the following issues: Property Walk -Over Survey to include: evidence of asbestos containing material (ACM), lead containing materials, visual evidence of aboveground or underground storage tanks, evidence of PCB - containing transformers or ballasts, evidence of mercury containing equipment, evidence of lead containing materials, evidence of chlorofluorocarbons (CFC) and hydrochlorofluorocarbons (HCFC), batteries, fluorescent lights, HVAC system components, accessible commercial electrical system components, oil, hazardous waste, tires and miscellaneous solid waste; • Collection of samples representative of suspected ACM by a certified asbestos inspector; 0 Analysis of bulk asbestos and lead samples by a certified laboratory; Preparation of a report documenting methodologies used, analytical data, pertinent regulations, findings, and conclusions. Curtis Jacobson Pinnacle Proposal No.: P107283.000 August 22, 2007 Page 2 of 3 Potential ACM and lead includes, but is not limited to: pipe, duct or boiler insulation, fireproofing, sprayed acoustics, plasters, ceiling panels/ tiles, floor tiles/ sheet flooring, adhesives, cementitious hardboard or pipe, roofing, and exterior/ interior window panels. In general, the results from a single sample can cause a material to be labeled as an ACM; however, multiple samples are required to certify a material as a non -ACM. Therefore, the total number of samples collected is based on the types and numbers of suspect materials within the building. We expect approximately 250 samples will be required. More or fewer samples than the estimated number may be collected based on the actual materials used in the building. This work scope does include the surveying of accessible exterior areas, including roofing, and the collection of samples from these areas. A temporary asphalt patch will be applied over sampled roof areas, if applicable, but Pinnacle carulot guarantee that the roof will remain watertight. Please contact us if modifications are desired. It should be noted that floor tile and file adhesives and surfacing material collection requires the removal of approximately 2" x 2" samples. Carpeted surfaces may also require limited areas of carpeting to be pulled up for examination of floor surfaces. Ceiling panels and /or tile samples require collection of 2" x 1" samples from grid systems. Plaster, gypsum board, and thermal insulation generally require sample borings of approximately Y diameter or less. Pinnacle will not be responsible for repairing the area of sampling locations. Where possible, sampling will be conducted in discrete areas. Pinnacle will be responsible for the cleaning of any accidentally released bulk material during sample collection. In addition, Pinnacle will temporarily patch the covering of thermal insulation with duct tape. Timeline The Pre - Demolition Survey report shall be completed in 15 days upon the notice to proceed. Upon request of the client, Pinnacle shall attempt to expedite the completion and delivery date of the Demolition Survey to meet the requested timeline. Costs incurred due to accelerated turn- around from the laboratory will be an additional charge. Cost Pinnacle shall complete the Pre - Demolition Survey for an estimated cost of $7,177.50 including costs for analysis of 250 ACM and lead samples. Based on the size and use of the building, approximately 250 potential ACM and lead containing samples will be collected to meet the MPCA demolition survey requirements. Curtis Jacobson Pinnacle Proposal No.: P107283.000 August 22, 2007 Page 3 of 3 Terms By signing this Proposal, you agree to pay according to Pinnacle's invoice terms, which are net 30 days. You also agree to pay finance charges on all past due invoices at the highest legal rate (1.5% monthly), together with any costs of collections, including reasonable attorney fees, which Pinnacle may incur in obtaining payment of the account. The attached General Conditions are to be considered part of this proposal. If you have any questions or wish to discuss any particular aspect of the project, please contact me at (763) 315 -4501. To accept this proposal, please sign, date, and return one copy of this correspondence to my office. Dated this PINNACLE ENGINEERING, INC. By: John Landwehr Senior Project Manager day of City of New Hope Curtis Jacobson 2007. REQUEST FOR QUOTE PRE - DEMOLITION BUILDING SURVEY Properties List 8400 Bass Lake Road 8401 Bass Lake Road 8411 Bass Lake Road 8420 Bass Lake Road 8421 Bass Lake Road NEW HOPE, MINNESOTA Mr. Curtis Jacobsen City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 Dear Council Members: Quote Due 8/22/07 The undersigned, having studied the attached description of work, being familiar with all factors and other conditions affecting the work and cost thereof, hereby proposes to furnish all labor, tools, materials, skills, equipment and all else necessary to complete the project in accordance with the attached description of work. Hourly ACM Analysis Lead Paint Residential Labor Rate Rate Rate Apartment Buildings (Sampling) (Per Sample) (Per Sample) Bulk Asbestos and Environ- mental Hazards Survey Sampling $65.00 $12.00 $12.00 (In a written narrative please specify the total number of samples for each particular sample group to be collected and the total time to collect said samples.) Report preparation $85.00 Total hours required 12.5 Cost estimating $115.00 Estimated Total Cost $ 7,177.50 In submitting this bid it is understood that the owner retains the right to reject any and all bids and to waive irregularities and informalities therein and to award the contract in the best interests of the owner, and that the bidder accepts the general terms of the standard City contract. It is understood that bids may not be withdrawn for a period of 60 days after the date on the quote form. Respectfully Submitted, Pinnacle Engineering, Inc. John Landwehr Printed Name of Signer 11541 95 Avenue North Address Maple Grove, MN 55369 City, State & Zip Code 763- 315 -4501 Telephone No, 8/22/07 Date AMERICAN ENGINEERING TESTING, INC. August 21, 2007 City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 Attn: Mr. Curtis Jacobsen RE: Pre- Demolition/Renovation Asbestos and Hazardous Material Survey Bass Lake Road Apartments 8400, 8420 Bass Lake Road and 8401, 8411, 8421 58 Avenue North New Hope, Minnesota AET Proposal No. 3 -07 -306 Dear Mr. Jacobsen: CONSULTANTS • ENVIRONMENTAL GEOTECHNICAL ° MATERIALS ° FORENSICS American Engineering Testing, Inc. (AET) is pleased to offer services to the City of New Hope (hereafter referred to as the Client) for performing Pre- Demolition/Renovation Asbestos and Hazardous Material Surveys of the above referenced apartment buildings. This proposal is submitted per your e- mailed request of August 16, 2007, and describes the scope of services, schedule, fees and other information regarding our services. Attached to this proposal is the "Request for Quote" included with your request. Project Information We understand this site consists of five 12 -unit apartment buildings that are planned for demolition. Of the five apartment buildings, four are occupied and one (8400 Bass Lake Road) is vacant. A "Description of Work" was provided with your request. Purposes The purpose of an Pre- Demolition/Renovation Asbestos and Hazardous Material Survey is to identify and quantify asbestos containing materials (ACM) as well as readily identifiable hazardous material sources, i.e. thermostats, light ballasts, door closures, petroleum products, etc. The project also includes a lead -based paint survey of areas where paint is not attached to the substrate. Scope of Services In order to achieve the purpose of this service, AET will perform the following tasks in accordance with your provided "Description of Work ". Y Observe the buildings and/or review available building plans to obtain information indicating the existence of ACM or other hazardous materials. This document shall not be reproduced, except in full, without written approval of American Engineering Testing, Inc. 550 Cleveland Avenue North ° St. Paul, MN 55114 Phone 651 - 659 -9001 • Toil Free 800.972 -6364 ° Fax 651 -659 -1379 • www,amengtest.com Offices throughout Florida, Minnesota, South Dakota & Wisconsin AN AFFIRMATIVE ACTION AND EQUAL OPPORTUNITY EMPLOYER City of New Hope AET Proposal No. 3 -07 -306 August 21, 2007 Page 2 of 3 • Locate and sample, where accessible, thermal system insulation, surfacing material, and miscellaneous material identified as suspect ACM. • Analyze the suspect ACM samples for asbestos content. • Assess the condition and estimate the quantities of any confirmed ACM. • Inventory identifiable items that potentially contain hazardous materials such as mercury, poly - chlorinated biphenyls (PCBs), chlorofluorocarbons (CFCs) or other materials. These items may include, but are not limited, to thermostats, switches, fluorescent lights, batteries, transformers, light ballasts, refrigeration units, chillers and door closures. We will also inventory sources of petroleum products. • Analyze selected painted surfaces of the buildings for lead content through use of an x- ray fluorescent (XRF) analyzer. The selected painted surfaces include those where the paint is not attached to the substrate. • Preparation of a written report for each building. Limitations • The areas we select to be sampled and inventoried will be based on visual observations of the above - identified buildings. Material from .areas that are concealed or inaccessible, including inaccessible for safety concerns, may not be discovered. • Since all the buildings except for 8400 Bass Lake Road, are apparently still in use, minimum destruct methods will be used to obtain suspect ACM samples. Client Responsibilities The Client shall provide AET with safe access to the buildings. Performance Schedule We will complete this project and deliver the report to you within 15 calendar days of receiving your Notice to Proceed. This proposal is valid for a period of 90 days from the date issued. Conditions The attached Service Agreement applies to this project. Fees Our fees for services will be charged on a time and materials basis in accordance with our current schedule of fees, which is attached. For the Pre- Demolition/Renovation Asbestos and Hazardous Material Survey scope of services described above, the cost will not exceed $7,450.00 without prior written approval. This fee includes laboratory analysis of up to 200 samples for asbestos. Additional asbestos samples, if needed, will be sampled and analyzed for an additional cost of $25.00 per sample. City of New Hope AET Proposal No. 3 -07 -306 August 21, 2007 Page 3 of 3 Acceptance Please indicate your acceptance of this proposal and authorization to proceed by signing, dating and returning one copy of this proposal to us. The second copy is for your records. American Engineering Testing, Inc. appreciates the opportunity to provide this service for you and looks forward to working with you on this project. If you have any questions, or need additional information, please contact us at us. Sincerely, American Engineering Testing, Inc. Richard D. Lowe Senior Environmental Scientist Phone: (651) 659 -1316 Fax: (651) 659 -1379 Email: rlowe(Qamengtest.com Attachments: City of New Hope Form - Request for Quote 2007 Environmental Fee Schedule Service Agreement REQUEST FOR QUOTE PRE - DEMOLITION BUILDING SURVEY Properties List Mr. Curtis Jacobsen City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 Dear Council Members: Quote Due 8/22/07 The undersigned, having studied the attached description of work, being familiar with all factors and other conditions affecting the work and cost thereof, hereby proposes to furnish all labor, tools, materials, skills, equipment and all else necessary to complete the project in accordance with the attached description of work. Residential Apartment Buildings 8400 Bass Lake Road 8401 Bass Lake Road 8411 Bass Lake Road 8420 Bass Lake Road 8421 Bass Lake Road NEW HOPE, MINNESOTA Hourly Labor Rate (Sampling) ACM Analysis Rate (Per Sample) Lead Paint Rate (XRF Rental - $300 / day) Bulk Asbestos and Environ- mental Hazards Survey Sampling $197.00 '.. • 1 $300.00 per day (XRF Rental) The total of 200 suspected ACM samples to be analyzed are included with the following estimate. The lead paint rate is based on our daily rental rate of the XRF equipment at $300.00 per day, with an expected usage of one day. Report preparation $3270.00 Total hours required 25 Cost estimating $ NA Estimated Total Cost $ 7,450.00 In submitting this bid it is understood that the owner retains the right to reject any and all bids and to waive irregularities and informalities therein and to award the contract in the best interests of the owner, and that the bidder accepts the general terms of the standard City contract. It is understood that bids may not be withdrawn for a period of 60 days after the date on the quote form. Respectfully Submitted, Z - " 0 el- - ",;; � - Richard D. Lowe Printed Name of Signer American Engineering Testing, Inc. 550 Cleveland Avenue No. St. Paul, MN 55114 City, State & Zip Code (651) 695 -1316 Telephone No. August 20, 2007 Date AMERICAN CONSULTANTS 1'NGINEERING ° ENVIRONMENTAL .American Engineering Testing, Inc. • GEOTECHNICAL TESTING, lESTING, INC. ' 2007 Environmental Fee Schedule MATERIALS " FORENSICS Engineering/Technical Personnel Rates 5. Water Sampler 20/hr A. Engineering /Environmental Technician I $58/hr D. Geotechnical Equipment Rental B. Engineering/Environmental Technician II 69/hr 1. Field Vane Shear 280 /day C. Drill Technician/Geotechnical Lab Technician 78/hr 2. Inclinometer Pleading Equipment 290 /day D. Technician Level II CWI/ICBO 78/hr 3. Pneumatic Transducer Reading Equipment E. Senior Engineering/Environmental Technician III 83/hr (pore pressure, settlement or earth pressure) 145 /day F. Engineering Assistant 93/hr 4. Bore Hole Permeability G. Engineer I, Geologist I, Scientist 1, Ind. a) Open End Casing Method 105 /day Hygienist I 99/hr b) HQ Wire line Packer 280 /day H. Senior Engineering Assistant, Engineer 11, 5. Borehole Pressuremeter 48/hr Geologist II, Scientist II, Ind. Hygienist II 1 I4/hr 6. Iowa Borehole Shear Tester 300 /day I. Senior Engineer, Geologist, Scientist, Ind. 7. Double Ring Infiltrometer 225 /day Hygienist 126/hr 8. GPS Mapping System Equipment 13/hr J. Principal Engineer, Geologist, Scientist, Ind. 9. Pile Driving Analyzer (PDA) 650 /day Hygienist 151/hr 10. Auxiliary PDA Equipment K. Principal of Firm 162/hr a.) Generator 39 /day L. Litigation Preparation 198/hr b.) Calibrated SPT Rod 165 /day M. Deposition or Court Time (4 -hour minimum) 245/hr E. Geotechnical Software Rental 1. Finite Element (seepage or soil deformation) 55/hr The rates presented are portal to portal, with vehicle mileage, 2. CAPWAP 30/hr expenses and equipment rentals being additional. Reduced -3. Wave Equation 15/hr rates may be negotiated for long -term projects. 4. L-Pile 15/hr 5. Slope Stability 151hr Overtime for personnel categories A -E charged at above cost 6. Stabilized Earth Slopes and Walls 15/hr plus 25% for over 8 hours per day or Saturday; and at above 7. Settlement (FoSSA) 15/hr cost plus 50% for Sundays or Holidays. Hazardous work F. Bit Wear charged at additional 25 %. Night time shift work will include I. Diamond Bit - Sedimentary Rock a premium charge of $30.00 per person per shift. a) B, NQ 10 /ft b) HQ 12 /ft Vehicle Mileage (personnel time and rental extra) 2. Diamond Bit - Metamorphic and Igneous A. Personal Automobile/Truck $.60 /mi a) B, NQ 17/ft B. 3/4 -ton Truck/Van .80 /mi b) HQ 20 /ft C. 1 -ton or 2 -ton Rig Auxiliary Truck .951mi D. 1 -ton Truck with Drill Rig 1.00 1mi Water and Wastewater Monitoring Equipment Rental E. 1 Yz to 2%z -ton Truck with Drill Rig 1.15 /mi A. ISCO Autosampler $55 /day F. 20 -Ton CPT Truck Rig 1.30 /mi B. Liquid Level Recorder 50 /day G. Tractor/Lowboy Trailer 1.50 /mi C. Flow Meter 85 /day D. Confined Entry Equipment 140 /day Site Exploration Equipment Rental/Services E. Weir Materials 40 /day A. Drill Rig Rental F. Recording pH Meter 45 /day 1. Rotary Drill on 4WD 1 -ton Truck $57/hr G. Confined Space Equipment quoted per job 2. Rotary Drill on 2WD 1 1 /2 to 2` /z -ton Truck 67/hr H. Kemmerer Type Sampler 45 /day 3. Rotary Drill on 4WD 1 %z to 2' /z -ton Truck 69/hr 1. Chlorine Residual Meter 45 /day 4. Rotary Drill on All- Terrain Vehicle 97/hr J. DR2000 Spectrophotometer 85 /day 5. Portable, Non -rotary Rig 67/hr B. Rig Auxiliary Vehicle Rental Groundwater Monitoring Equipment Rental 1. Trailer 8/hr A. Dissolved Oxygen Meter $50 /day 2. 3/4 -ton Truck 14.50/hr B. pH Meter 25 /day 3. 1 -ton or 2 -ton Truck 19.50/hr C. Conductivity Meter 25 /day C. Cone (CPT) Rig/Equipment Rental D. Redox Potential Meter 25 /day 1. 20 -Ton CPT Truck Rig $120/hr E. Bailers - Polypropylene 15 /ea 2. All- Terrain Rig (10 -Ton capability) 971hr F. Bailers -Teflon 30 /ea 3. Electronic Cone or Piezocone w /computer 35/hr G. Groundwater Modeling Software 25/hr 4. Soil Sampler 3/hr H. Water Level Probe 50 /day This document shall not be reproduced, except in full, without written approval of American Engineering Testing, Inc. 550 Cleveland Avenue North • St. Paul, MN 55114 Phone 651 - 659 -9001 • Toll Free 800 -972 -6364 • Fax 651 - 659 -1379 ® www.amengtest.com Offices throughout Florida, Minnesota, South Dakota & Wisconsin AN AFFIRMATIVE ACTION AND EQUAL OPPORTUNITY EMPLOYER Page 1 of American Engineering Vesting, Inc. 2007 Environmental Fee Schedule I. Oil -Water Interface Sensor 90 /day G. Air Velocity Meter 50 /day J. Well Rate of Recovery Equipment 150 /day H. Air Flow Measurement Instrumentation 100 /day K. 2" Pump Assembly 100 /day I. FIA Monitoring Station 300 1day L. Peristaltic Assembly 60 /day J. Impinger/Meter Console Assembly 200 /day M. Stabilization Assembly 90 /day K. 02 /CO2 /CO 300 /day N. Turbidity Meter 25 /day L. Isokinetic Sampling Train 350 /day O. Groundwater Filter - Gelman Inline 15 /ea M. Vacuum Sampler Assembly 75 /day P. Groundwater Filter — Nalgene 10 /ea N. 50' Heated Sample Line Assembly 120 /day Q. HydroPunch7 250 /day O. Orsart Analyzer 100 /day P. 40L Tedlar Bag 25 /ea Soil Sampling and Support Equipment Rental Q. GasTech OVM 40 /day A. Direct Push Sampling System (Geoprobe7) S85/hr R. GasTech TGD 40 /day B. XRF Analyzer 350 /day S. Three - Dimensional Pitot Tube Assembly 200 /day C. Soil Auger Assembly 50 /day T. NO 300 /day D. Power Auger 65 /day U. Sample Gas Conditioner 100 /day E. Site Trailer 85 /day F. Level C Protective Gear quoted per job Expenses G. Level B Protective Gear quoted per job Direct Project Expenses: H. Level A Protective Gear quoted per job includes out -of -town per diem; plowing and towing; special I. Vacuum Blower quoted per job equipment, materials and supplies; special travel, J. Coliwassa Sampler 15 /ea transportation and freight; subcontracted services, and K. Steam Cleaning Service (includes rental) miscellaneous costs Cost + 15% 1. Drill Rig/Tools 315 /clean 2. Down Hole Drill Tools Only 210 /clean Equipment Replacement — L. Stearn Cleaner 140 /day (when abandonment is more feasible than recovery) Cost M. Portable Generator (220 volt) 25 /day Equipment Recovery — N. Magnetic Locator 25 /day (when required by regulatory agencies or project specifications) Cost + 15% Industrial Hygiene Equipment Rental A. Sampling Pump, 28.3 liter $50 /day Clerical/Drafting Services and Rentals B. Sampling Pump, High Flow 100 /day A. Personnel Rates C. Sampling Pump, Dragger 25 /day 1. Word Processing Specialist $53/hr D. Protimeter Moisture Monitor 100 /day 2. Draftperson 65/hr E. P -track Particle Counter 150 /day B. Report Reproduction F. Carpet & Dust Sampler 25 /ea 1. Minimum (copying additional) 50 /report G. Wall Sampler 25 /day 2. Copying .35 /sheet H. Indoor Air Quality Monitor 150 /day C. Computer and Software Rental (personnel time extra) I. Capture Hood 150 /day 1. AutoCAD 25/hr J. Heat Stress Monitor 85 /day 2. AutoCad Plotting 1.00 /sq.ft. K. Sound Level Meter 48 /day 3. Air Dispersion Modeling 25 /hr L. Audio Dosimeter 48 /day 4. Ground Water Modeling 25/hr M. Microscope 25 /sample D. Digital Camera/Photographs N. Bore Scope 25 /day 1. Camera Rental 25 /day O. Wet Wall Detector 25 /day 2. Color Photographs 1.50 /page P. Generator 25 /day E. Direct Project Expenses Cost +15% Q. AccuBalance 100 /day A minimum charge of $100.00 per job may be assessed to Air Monitoring Equipment Rental cover administrative costs. A. Photoionization Detector $100 /day B. Flame Ionization Detector 115 /day C. LEL Meter 50 /day D. Landtec Methane Meter 175 /day E. Gas Meter (LEL,02,H CO) 95 /day F. Methane Meter 50 /day Page 2 of 2 SERVICE AGREEMENT - TERMS AND CONDITIONS Page 1 of 2 SECTION 1 - RESPONSIBILITIES 1_I - The party to whom the proposal /contract is addressed is considered the Client of American Engineering Testing, Inc. (AET). The terms and conditions stated are binding, upon acceptance, on the Client, its successors, assignees, joint ventures and third -party beneficiaries. Oral proposal acceptance or authorizing purchase orders from the Client are considered formal acceptance of AET's terms and conditions. 1_2 - Prior to AET performing work, Client will provide AET with all information that may affect the cost, progress, safety and performance of the work. This includes, but is not limited to, information on proposed and existing construction, all pertinent sections of contracts between Client and property owner, site safety plans or other documents which may control or affect AET's work. If new information becomes available during AET's work, Client will provide such information to AET in a timely manner. Failure of client to timely notify AET of changes to the project including, but not limited to, location, elevation, loading, or configuration of the structure or improvement will constitute a release of any liability of AET. Client will provide a representative for timely answers to project - related questions by AET. 1_3 - Work by AET will not relieve other persons of their responsibility to perform work according to the contract documents or specifications, and AET will not be held responsible for work or omissions by Client and other persons. AET does not perform construction management, general contracting or surveying services and our presence on site does not constitute any assumption of those responsibilities. AET will not be responsible for directing or supervising the work of others, unless specifically authorized and agreed to in writing. 1_4 - Work by AET often includes sampling at specific locations. Inherent with such sampling is variation of conditions between sampling locations. Client recognizes this uncertainty and the associated risk, and acknowledges that opinions developed by AET, based on the samples, are qualified to that extent. 1 . - AET is not responsible for interpretations or modifications of AET's recommendations by other persons. 1 v 6 - Should changed conditigrts:be alleged, Client agrees to notify AET before evidence of alleged change is no longer accessible for evaluation. SECTION 2 - SITE ACCESS AND RESTORATION 2_1 - Client will furnish AET safe and legal site access. 2 - It is understood by Client that in the normal course of the work, some damage to the site or materials may occur. AET will take reasonable precautions to minimize such damage. Restoration of the site is the responsibility of the Client. SECTION 3 - SAFETY 3 - Client shall inform AET of any known or suspected hazardous materials or unsafe conditions at the work site. If, during the course of AET's work, such materials or conditions are discovered, AET reserves the right to take measures to protect AET personnel and equipment or to immediately terminate services. Client shall be responsible for payment of such additional protection costs. 3 - AET shall only be responsible for safety of AET employees at the work site. The Client or other persons shall be responsible for the safety of all other persons at the site. SECTION 4 - SAMPLES 4_1 - Client is responsible for informing AET of any known or suspected hazardous materials prior to submittal to AET. All samples obtained by, or submitted to, AET remain the property of the Client during and after the work. Any known or suspected hazardous material samples will be returned to the Client at AET's discretion. 44 ^ 2 - Non - hazardous samples will be held for 30 days and then discarded unless, within 30 days' of the report date, the Client provides a written request that AET store or ship the samples, at the Client's expense. SECTION 5 - PROJECT RECORDS The original project records prepared by AET will remain the property of AET. AET shall retain these original records for a period of three years following submission of the report, during which period the project records can be made available to Client at AET's office at reasonable times. SECTION 6 - STANDARD OF CARE AET will perform services consistent with the level of care and skill normally performed by other firms in the profession at the time of this service and in this geographic area, under similar budgetary constraints. No other warranty is implied or intended. SECTION 7 - INSURANCE AET carries Worker's Compensation, Comprehensive General Liability, Automobile Liability and Professional Liability insurance. AET will furnish certificates of insurance to Client upon request. - ACS40 - 1(02/05) - - - - AMERICAN- ENGINEERING- TESTING, - INC.- - -- SERVICE AGREEMENT - TERMS AND CONDITIONS Page 2 of 2 SECTION 8 - DELAYS If AET work delays are caused by Client, work of others, strikes, natural causes, weather, or other items beyond AET's control, a reasonable time extension for performance of work shall be granted, and AET shall receive an equitable fee adjustment. SECTION 9 - PAYMENT INTEREST AND BREACH 9.1 - Invoices are due on receipt. Client will inform AET of invoice questions or disagreements within 15 days of invoice date; unless so informed, invoices are deemed correct. 9.2 - Client agrees to pay interest on unpaid invoice balances at a rate of 1.5% per month, or the maximum allowed by law, whichever is less, beginning 30 days after invoice date. 9.3 - If any invoice remains unpaid for 60 days, such non - payment shall be a material breach of this agreement. As a result of such material breach, AET may, at its sole option, terminate all duties to the Client or other persons, without liability. 9.4 - Client will pay all AET collection expenses and attorney fees relating to past due fees which the Client owes under this agreement. SECTION 10 - MEDIATION 10.1 - Client and AET agree that any claim, dispute or other matter in question arising out of or related to this Agreement shall be subject to mediation as a condition precedent to arbitration or the institution of legal or equitable proceedings by either party. 10.2 - Unless Client and AET mutually agree otherwise, mediation shall be in accordance with the Construction Industry Mediation Rules of the American Arbitration Association. Request for mediation shall be in writing and the parties shall share the mediator's fee and any filing fees equitably. The mediator shall be acceptable to both parties and shall have experience in commercial construction matters. SECTION Il - LITIGATION REIMBURSEMENT Payment of AET costs for Client lawsuits against AET which are dismissed or are judged substantially in AET's favor will be the Client's responsibility. Applicable costs include, but are not limited to, attorney and expert witness fees, court costs, and AET costs. SECTION 12 - MUTUAL INDEMNIFICATION 12.1 - AET agrees to hold harmless and indemnify Client from and against Iiability arising out of AET's negligent performance of the work, subject to Section 13 and any other limitations, other indemnifications or other provisions Client and AET have agreed to in writing. 12.2 - Client agrees to hold harmless and indemnify AET from and against liability arising out of Client's negligent conduct, subject to any limitations, other indemnifications or other provisions Client and AET have agreed to in writing. 12.3 - If Client has indemnity agreement with other persons, the Client shall include AET as a beneficiary. SECTION 13 - LIMITATION OF LIABILITY Client agrees to limit AET's liability to Client arising from negligent acts, errors or omissions, such that the total liability of AET shall not exceed $25,000 or shall not exceed the project fees, whichever is greater. SECTION 14 - TERMINATION After 7 days written notice, either party may elect to terminate work for justifiable reasons. In this event, the Client shall pay for all work performed, including demobilization and reporting costs to complete the file. SECTION 15 - SEVERABILITY Any provisions of this agreement later held to violate a law or regulation shall be deemed void, and all remaining provisions shall continue in force. However, Client and AET will in good faith attempt to replace an invalid or unenforceable provision with one that is valid and enforceable, and which comes as close as possible to expressing the intent of the original provision. SECTION 16 - GOVERNING LAW This Agreement shall be construed, and the rights of the parties shall be determined, in accordance with the Laws of the State of Minnesota. SECTION 17 - ENTIRE AGREEMENT This agreement, including attached appendices, is the entire agreement between AET and Client. This agreement nullifies any previous written or oral agreements, including purchase /work orders. Any modifications to this agreement must be in writing. - ACS401(02J05) AMERICAN- ENGINEERING TESTING, -INC. INDUSTRIAL HYGIENE August 15, 2007 City of New Hope c/o Mr. Jerry Pertzsch Bonestroo 2335 Highway 36 West St. Paul, MN 55113 I J: =4 SERVICES CORPORATION Subject: Cost Estimate for Industrial Hygiene Services Pre - Demolition Inspection and Sampling, Bass Lake Apartments, New Hope, Minnesota Dear Mr. Pertzsch: In response to your recent request, Industrial Hygiene Services Corporation (1HSC) is providing a cost estimate for completing pre - demolition activities at the Bass Lake Apartment complex in New Hope, Minnesota. We understand that these structures may be demolished; however, four (4) of the five (5) buildings are currently occupied. No specific timeframe has been identified for the demolition activities, but inspection, sampling, and reporting must be completed within the next 30 days. Scope of Work Asbestos Material Survey > IHSC personnel, certified by the Minnesota Department of Health (MDH) for asbestos inspection, will survey the building. Suspect ACM will be identified and quantified. Representative samples of materials will be collected for analysis. > It is understood that one (1) of the five (5) buildings will be vacant and readily accessible. Only accessible material sampling will be conducted in the occupied buildings. In any of the buildings suspect material may be damaged as necessary to collect samples; walls or ceilings may be penetrated to inspect for hidden materials. ➢ National Emissions Standards for Hazardous Air Pollutants (NE:SHAP) regulation requires that a thorough asbestos inspection, which includes destructive sampling, 4205 White Bear Parkway • Suite 500 , Vadnais Heights, MN 55110 - 651.766.9811 - fax 651.766.9822 Mr. Jerry Pertzsch City of New Hope Pre - Demolition Inspection and Sampling Bass Lake Apartments, New Hope, Minnesota August 15, 2007 Page 2 of 4 be completed prior to building demolition. Destructive sampling will only be conducted in the building that has been condemned. Materials considered suspect for asbestos that IHSC anticipates being identified in the buildings include roofing, suspended ceiling systems, floor tiles, linoleum sheeting, flooring adhesive, plaster sheetrock, texturing, tile grout, caulking, exterior siding, and thermal insulation (i.e., boiler, piping, or duct). IHSC estimates that up to 300 samples may be collected. 9 Asbestos samples will be analyzed according to EPA Method 600/R- 93/116, utilizing polarized -light microscopy and dispersion - staining techniques. As required in the MDH rules, the samples will be analyzed for asbestos by a laboratory that successfully participates in the asbestos bulk analysis program of the American Industrial Hygiene Association (AIHA) or is accredited for asbestos analysis of building materials through the National Institute of Standards and Technology's National Voluntary Laboratory Accreditation Program (NVLAP). Lead Based Paint Sampling ➢ IHSC personnel will survey the building and identify paint that is no longer attached to the substrate. Paint chip samples will be collected from any surface with greater than two (2) square feet disrupted or delaminating paint. This will not be a full lead paint survey. The intent of this survey is to satisfy Minnesota Pollution Control Agency's (MPCA's) requirement of identifying the lead content of damaged paint surface and debris prior to demolition of a building. IHSC estimates that up to 120 samples may be collected. ➢ The paint samples will be submitted to a laboratory accredited for analysis according to EPA SW -846 Method 7420, utilizing Flame Atomic Absorption. Regulated Materials Inventory ➢ IHSC personnel will inspect, identify, and list regulated materials that will need to be removed prior to demolition. These items, in accordance with the MPCA's pre - demolition checklist, include, but are not limited to: • PCB- containing ballasts, capacitors, and similar items • Mercury thermometers, switches, and similar items • Fluorescent bulbs • Oil (motor oil, hydraulic fluid, etc) • Chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs) • Pressure treated wood Mr. Jerry Pertzsch City of New Hope Pre - Demolition Inspection and Sampling Bass Lake Apartments, New Hope, Minnesota August 15, 2007 Page 3 of 4 • Stored chemicals and household hazardous waste Batteries Solid waste High intensity discharge (HID) lamps • Heating fuel oil tanks Electronics • Flammable waste traps White goods and other appliance -like units No excavation will be preformed as part of IHSC's inspection. In the event there is reason to believe that suspect environmental concerns reside beneath building foundations, notification will be included in IHSC's final report. If requested, arrangements will be made. for further inspection during excavation activities. Upon completion of the site survey and sample analysis, IHSC will prepare a final report, which will include the following information: A Summary of survey activities, methods, and results. ➢ Listing of surveyed and sampled materials, including information regarding discovered asbestos material type, location, approximate quantity, and the EPA NESHAP categorization (Friable, Non - Friable Category I or Category 11). This information will assist with the determination of handling the materials during demolition planning. Current state and federal regulations will be referenced. 9 Site diagrams illustrating sampled and discovered asbestos material locations. These drawings will be illustrative only, and not "to scale ", or intended for abatement bidding purposes. A No asbestos management plan will be prepared as a part of the final report. It is not necessary given the planned demolition of the campus. IHSC will prepare project cost estimates based on the results of the inspection. Mr. Jew Pertzsch City of New Mope Pre - Demolition Inspection and Sampling Bass Lake Apartments, New Hope, Minnesota August 15, 2007 Page 4 of 4 Proposed IHSC Proiect Schedule IHSC is prepared to conduct the pre - demolition inspection activities upon your authorization to proceed. It is anticipated that approximately eight (8) working days will be required for the completion of the inspection site activities. The final survey report will be presented to you within four weeks of site work completion. Proiect Costs The not -to- exceed fee for the pre - demolition inspection activities described is estimated to be $18,000 based upon IHSC's rates. IHSC will invoice against this amount in a "time and materials" fashion. For any additional and approved work, IHSC's Fee Schedule included with this proposal will apply. Any deviations from the cost estimates will be addressed with your office. The rates presented on the attached fee schedule will be used to address additional fees. No additional work will be completed without authorization from your office. Thank you for contacting IHSC on this matter. We look forward to working with you on this challenging project. Please contact directly at 651- 287 -5375 if you have any questions or concerns. Sincerely, INDUSTRIAL HYGIENE SERVICES CORPORATION Timothy P. Huber Principal Consultant Page 1 of 1 Jacobsen Curtis From: Pertzsch, Jerry D [Jerry.Pertzsch @bonestroo.com] Sent: Friday, August 24, 2007 7:52 AM To: Vander Top, Vince T; Jacobsen Curtis Subject: RE: Environmental Quotes Vince and Curtis, I have worked with AES a number of years ago and was happy with the work that they did. The modifications that AES has suggested in the proposal seems somewhat reasonable. If AES was selected to do the work, it would seem reasonable that they take samples for asbestos that do not require destruction of walls, roofs, etc. in occupied buildings during the initial phase of testing. It is reasonable to do sampling that requires destruction for access to samples until the buildings are vacant. This is similar to the comment by Legend about sampling roofing materials after the building are vacant in the event of roof leaks. Overall, the quote from AES was more than the quote from Legend. The hourly rates and sample rates from AES were less than the rates from Legend. The price difference came in the number of samples checked for asbestos and lead paint. AES assumed 200 asbestos samples and 50 lead paint samples compared to 100 and 5 respectively as assumed by Legend. The higher number of samples resulted in additional sample collection time and report (64 hours vs. 43 hours). In order to get the most accurate cost estimate for the abatement work, getting additional samples is beneficial and should eliminate surprises of unknown hazardous materials during demolition. Therefore, strong consideration should be given to the AES proposal over the Legend proposal. I should be noted that the work will be done on a time and material basis so the City will only be paying for the actual time spent and the samples analyzed. Please let me know if you have any questions or comments. Thanks, Tel 651 - 604 -4895 Cell 651 - 775 -5100 jerry.pertzsch@bonestroo.com onesoo From: Vander Top, Vince T Sent: Thursday, August 23, 2007 4:17 PM To: Pertzsch, Jerry D Subject: FW: Environmental Quotes 8/24/2007 Mr. Pat DiBartolomeo Applied Environmental Sciences, Inc. 8441 Wayzata Blvd. Suite 103 Golden Valley, MN 55426 RE: Environmental Services Quote/ Award Dear Mr. DiBartolomeo: Congratulations! The New Hope City Council at the City Council meeting last night authorized Applied Environmental Sciences, Inc. to act as the city's environmental consultant for the environmental survey of the Bass Lake Road Apartment complex. Your firm is authorized to begin the 'Initial Survey' work per your submitted quote of $3,755.00. Testing can begin as soon as we are able to arrange access to the property. The 'Notice to Proceed' will be forwarded by e -mail once access to the site has been arranged. Per the city's specified scope of services, the city will anticipate delivery of the report regarding the 'Initial Survey' work within 15 days of your receipt of the 'Notice to Proceed'. If you have any questions, you can reach me at 763- 531 -5137 or by e -mail at Oacobsen@ci.new-hope.mn.us If for any reason I am unavailable please feels free to contact either the City Manager, Kirk McDonald at 763- 531 -5119 or Eric Weiss at 763- 531 -5114. Sincerely, Curtis Jacobsen Community Development Specialist CC: Kirk McDonald 4401 Xylon Avenue North + New Hope, Minnesota 55428 -4898 + www. ci.new- hope.mn.us City Hall: 763- 531 -5100 + Police (non - emergency): 763- 531 -5170 + Public Works: 763 - 592 -6777 + TDD: 763 - 531 -5109 City Hall Fax: 763- 531 -5136 + Police Fax: 763 - 531 -5174 + Public Works Fax: 763- 592 -6776 Notice to Proceed Applied Environmental Sciences, Inc. Attn: Pat DiBartolomeo 8441 Wayzata Blvd, suite 103 Golden Valley, MN 55426 E -mail: pat.d @aesmn.com August 31, 2007 As of the date shown above, Applied Environmental Sciences, Inc. is authorized by this 'Notice to Proceed' to conduct an environmental survey of the buildings at: 8400 Bass Lake Road 8420 Bass Lake Road 840158th Avenue North 841158th Avenue North 8421 58th Avenue North All testing is to be conducted according to Minnesota Rules governing said testing. It is anticipated that Applied Environmental Sciences, Inc. will provide all survey reports and test results to the city within 15 days of the date listed above. Schedules for the survey work should be coordinated with Anne Erickson at 763- 537 -4592 and Eric Weiss at 763- 531 -5114. Aut4orized by: Kirk McDonald City Manager 4401 Xylon Avenue North * New Hope, Minnesota 55428 -4898 * www. ci.new- hope.mn.us City Hal:��- @4ril�'F�b'�7�- 531 -5170 * Public Works: 763 - 592 -6777 * TDD: 763- 531 -5109 City Hall Fax: 763 -5 1 -5136 * Police Fax: 763- 531 -5174 * Public Works Fax: 763- 592 -6776 December 12, 2007 Mr Timothy Mayasich, Chair Funding & Programming Metropolitan Transportation Advisory Committee 390 Robert Street North St Paul, MN 55101 -1805 Re: City of New Hope Federal TEA -21 Grant — County Road 10 City Project No,796 Bonestroo File No 000034 - 06178 -0 ?' S Dear Mr Mayasich, 2335 Highway 36W St Paul. MN 55113 Tel 651- 636 -4600 Fax 651 - 636.1311 wtwv bonestroo com We are sorry to inform you the City of New Hope will not be able to accept the Federal Funds made available for the County Road 10 improvements west of Winnetka Avenue. The proposed improvements were intended to be completed in conjunction with the redevelopment of apartment complex within the project area It has been determined the redevelopment of this property is not feasible at this time, especially within the time frame required by the funding program. The proposed street improvements included realignment of an intersection, additional turn lanes, elimination of and/or restrictions to access points, and increased sight distances. It is known these improvements would increase safety and improve traffic flow as well as provide aesthetic benefit However, it was intended that a portion of the local funding required for the project would come from tax increment financing made available by the redevelopment of the property mentioned, The City has been working over the last several years to purchase the property and work with a developer to construct a more desirable living establishment along this section of County Road 10 A number of factors have played a role in causing delays to this process including the recent lack of interest by developers due to the state of the current market New Hope has looked for options to fund the local portion for these improvements but without the redevelopment of this parcel, an available source has not been found It is with regret that improvements to County Road 10 can not be made at this time Yours very truly, BONESTR00 Jason P Quisberg, P E New Hope City Engineer Copy: Dan Erickson, Federal Aid Engineer Guy Johnson, New Hope Public Works Director Dmitry Tomasevich, Federal Aid Project Manager Kirk McDonald, New Hope City Manager st Paul St Cloud Rochester Milwaukee Chicago 1A Zois Originating Department Community Development By: Curtis Jacobsen, CD an M-TUMATU e Approved for Agenda January 28, 2008 Kirk McDonald, Executive Director Agenda Section EDA Item No. 5 Resolution approving first amendment to interim agreement with Insignia Development for the Bass Lake Road Apartments redevelopment project (improvement project no. 795) Requested Action Staff requests that the Authority approve the first amendment to the interim agreement with Insignia Development and authorize signatures. A representative from Insignia will be in attendance at the meeting, as Don Uram is unable to attend. Policy /Past Practice It is a past practice of the Authority to amend agreements as may be necessary and appropriate based on the circumstances related to that particular agreement. Background On November 26, 2007, Don Uram from Insignia Development provided an update to the Council regarding the interim agreement and requested a one year extension for all timelines within the agreement. The Council discussed a one year and possibly a shorter six month extension or a contract contingency. The intent of a contingency would be to allow either party to withdraw from the agreement should it be in their best interest to do so. An amendment has been drafted which extends all timelines within the initial agreement by one year. This agreement also adds a contingency that will allow either or both sides to withdraw from the agreement upon 45 days notice. Attachments • Resolution • 1st Amendment to Interim Agreement • Original Interim Agreement • Excerpts from November 26 Citv Council minutes Motion by Second by To: I} k}_ I: \RFA \PLANNING \PLANNING \Resolution approving 1st amendment to interim agreement 1- 28- 08.doc EDA Resolution 2008- 02 Resolution approving first amendment to interim agreement with Insignia Development for the Bass Lake Road Apartments redevelopment project (improvement project no. 795) WHEREAS, the Economic Development Authority and Insignia Development entered into an Interim Agreement on May 14, 2007; and WHEREAS, the Interim Agreement has various specific dates for actions by the parties to the agreement; and WHEREAS, due to the housing market slowing and its projected recovery being months away Insignia Development has requested a one year extension for all timelines within the agreement; and WHEREAS, there is no benefit to the City in proceeding with the timelines as outlined in the initial agreement NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority in and for the City of New Hope, Minnesota as follows: 1. That all timelines within the Interim Agreement between Insignia Development and the Economic Development Authority shall be extended by one year. 2. That Insignia Development shall have the right to withdraw from said agreement upon 45 days notice to the EDA. 3. That the EDA shall have the right to withdraw from said agreement upon 45 days notice to Insignia Development. Adopted by the Economic Development Authority of the city of New Hope, Hennepin County, Minnesota, this 28th day of January 2008. . � be"— Presiden Attest: < 1 Executive Director Excerpt from November 26, 2007 City Council minutes IMP. PROJECT 795 Mayor Opem introduced for discussion Item 8.2, Update from Insignia Item 8.2 Development regarding the Bass Lake Road apartment site (improvement project no. 795). Mr. Kirk McDonald, city manager, stated Don Uram has been invited to the meeting to give an update regarding the potential redevelopment of the Bass Lake Road Apartments site. He stated the city entered into an interim agreement with Insignia Development on May 14, 2007. He stated Insignia is a very reputable company and staff is pleased they remain interested in the site. Mr. McDonald stated the terms of the interim agreement have several timelines identified, and the first deadline is the provision of a market study by December 1. He stated the developer submitted a letter addressing the current market conditions and requested a one -year extension of the timelines. Mr. McDonald reported that staff supports the one -year extension due to the current housing market and the fact that the city will not have to begin the RFP process again. Mr. McDonald reminded the Council that the Bass Lake Road Apartment property acquisition will be discussed later this evening in a closed session. Mr. Don Uram, Insignia Development, was recognized. He pointed out the market conditions pose a challenge and it does not appear that conditions will improve in the next year. He acknowledged Insignia's continued interest in the site and asked for a one -year extension. He stated although a formal market study was not undertaken he advised the Council that within the 13 county area, Insignia typically requests 9,000 building permits but this year the number was less than 5,000. Council Member Stauner asked whether Mr. Uram was still considering a high density development. Mr. Uram indicated they have not explored anything else and would still consider a multi -story high density housing project for the site. Council Member Stauner suggested granting a shorter extension as the city is locked into an exclusive negotiation contract. Council Member Nolte asked for a contingency or only a six month extension. Mayor Opem stated if the city received an offer by another developer, the city could ask Insignia to release the agreement. Mr. Steve Sondrall, city attorney, agreed that new terms could be negotiated. Mr. Uram acknowledged that he would support a contract contingency. He noted from a developer's standpoint he would not want to tie up the site. The Council agreed to a 90 -day extension to enable Mr. Uram to meet with Mr. Sondrall to develop an interim agreement with a contingency clause. MOTION Motion was made by Council Member Stauner, seconded by Council Item 8.2 Member Hoffe, to grant a 90 -day extension and directing the city attorney to draft a new interim agreement with a contingency clause. All present voted in favor. Motion carried. INTERIM AGREEMENT This INTERIM AGREEMENT entered into effective the 14th day of May, 2007, by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority ") and Insignia Development LLC, a Minnesota limited liability company (the "Redeveloper "). WHEREAS, the Bass Lake Road Apartments site (the "Site ") consists of approximately 3.6 acres of land with five 12 -unit rental apartment buildings at 8400 and 8420 Bass Lake Road and 8401, 8411 and 8421- 58th Avenue; and WHEREAS, the Redeveloper might determine to expand the redevelopment site to include the four single- family lots at 8400, 8404, 8408, and 8412 58th Avenue North; and WHEREAS, the Authority desires for the Site to be redeveloped as owner - occupied market - rate housing or mixed -use development; and WHEREAS, the Redeveloper is proposing a redevelopment (the "Project ") for the Site and has requested that the Authority negotiate exclusively with the Redeveloper while the Project is being studied. WHEREAS, the Authority is willing to negotiate exclusively with the Redeveloper until October 1, 2008, provided that deadlines for certain milestones described below are met. NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each of them does hereby agree as follows: 1. Interim Nature of Agreement The Authority and the Redeveloper agree that this Agreement is intended to be preliminary in nature. Before the Authority and the Redeveloper can make a decision on whether to proceed with the Project, it will be necessary to assemble and consider information relating to the economics, site assembly, phasing, environmental remediation and other aspects of the Project. The purpose of this Agreement is to allow the Redeveloper an opportunity to assemble such information, to prepare a preliminary concept plan and to negotiate with the Authority concerning the approval of a term sheet (the "Term Sheet ") with a view to eventual execution of a contract for private redevelopment (the "Redevelopment Agreement ") which will set forth the rights and responsibilities of the Authority and the Redeveloper with respect to the Project. 2. Undertakings of the Authority. (a) The Authority agrees to cooperate with the Redeveloper in the Redeveloper's undertakings and agrees that during the term of this Agreement the Authority will not negotiate with any third party in connection with redevelopment of the Site. (b) The Authority will negotiate with the Redeveloper in good faith the terms of the Redevelopment Agreement, which includes examining options for acquisition, tenant relocation, demolition, infrastructure improvements, and the creation of a tax increment financing district for the Site. (c) The Authority will provide to the Redeveloper all market analyses, blight reports, surveys and soil, engineering, and geotechnical reports that have been done for the Site, as well as previous concept plans and estimates of any environmental remediation and soils correction costs prepared by previous redeveloper candidates for the Site. (d) The Authority will begin negotiations with the current property owner in an attempt to acquire the Site. 3. Undertakings of the Redeveloper (a) By December 1, 2007, the Redeveloper will review the reports and other materials from the Authority referenced above and will complete a market study for the project site. (b) By April 1, 2008, the Redeveloper will, in consultation with the Authority, the City and City residents, develop a preliminary concept plan. If the Redeveloper proposes to redevelop an area larger than the Site, the Redeveloper must indicate its ability to acquire the additional parcels voluntarily as evidenced by executed options or purchase agreements. (c) By June 1, 2008, the Redeveloper will also complete any additional environmental assessment the Redeveloper deems necessary to estimate the cost of any environmental remediation and soil corrections in order to construct the Project or will notify the Authority that no further testing will be required. (d) By August 1, 2008, the Redeveloper shall submit a construction pro forma, finished housing unit values and such other financial information as the Authority or its redevelopment consultants may request in order to assess the economic feasibility of the Project, the amount of Authority assistance to be provided to the project, and the price to be paid by the Redeveloper to the Authority for the Site. (e) By September 1, 2008, the Redeveloper shall: • Host a community open house in conjunction with city staff to present project plans and solicit feedback from the neighborhood; and • Obtain Authority approval of a Term Sheet. (f) By October 1, 2008, the Redeveloper will have negotiated and obtained Authority approval of a Redevelopment Agreement. 2 (g) During the term of this Agreement, the Redeveloper shall also: • Present progress reports to the Authority or to City Council, if requested; and • If the Redeveloper determines that the Site is not economically feasible to redevelop, the Redeveloper shall deliver to the Authority for its unrestricted use at no cost to the Authority all work product, market analysis, architectural and engineering reports, construction budget, research materials, and other documentation produced for the Site. 4. Responsibility for Costs and Redeveloper Deposit (a) During the term of this Agreement, the Authority or the City shall be responsible for fees and costs of its planning and engineering consultants and the City Attorney (except as set forth in subparagraphs (b)(3) and (4) below). (b) The Redeveloper shall be responsible for: (1) fees and costs of its counsel and consultants, (2) the cost of any additional market studies, environmental analyses, soil borings, or surveys performed by the Redeveloper, (3) if the Redeveloper proposes to redevelop an area larger than the Site, the additional costs of property acquisition, resident relocation, demolition, blight analysis, surveys, and environmental testing for the additional parcel(s), as well as the cost of any required re- engineering of the infrastructure improvements described in subparagraph (a)(3) above (such costs may be eligible for reimbursement with tax increment, however), and (4) fees incurred after the date of Authority approval of this Agreement by the Authority's redevelopment counsel, Krass Monroe, P.A., for financial and feasibility analysis of the Redeveloper's project, drafting and negotiation of the Term Sheet and Redevelopment Agreement, and, with respect to any additional parcels to be acquired by the Redeveloper, review of blight analysis and review of qualification of such parcels for inclusion in the tax increment district. (c) Upon execution of this Agreement, the Redeveloper shall pay a non - refundable fee of $500.00 to the Authority. Upon the Redeveloper's submittal of the concept plan, the Redeveloper shall also make a deposit of $5,000.00 to be applied by the Authority to reimburse costs and fees incurred by the Authority for which the 3 Redeveloper is responsible under this Paragraph 5. The Redeveloper shall replenish this deposit when the balance falls below $1,000.00 upon request by the Authority. (d) In accordance with City policy, the Redeveloper will pay all normal and customary City fees associated with the plan review and approval process. 5. Term of Agreement This Agreement for exclusive negotiations shall be binding upon the parties until October 1, 2008, unless terminated sooner by the Authority for the Redeveloper's failure to timely comply with any of the deadlines set forth in Paragraph 3 or by mutual agreement of the parties. 6. City and Authority Use of Work Product If the Redeveloper decides not to proceed with redevelopment of the Site, the Redeveloper shall make available at no cost to the City and the Authority for their unrestricted use all available non - proprietary work product, including market analyses, soil and engineering reports, geotechnical reports, infrastructure construction budgets, and other documentation produced specifically for the Site. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA INSIGNIA DEVELOPMENT LLC " a By: _ Its:�� L, r`3 January 31, 2008 MR. Don Uram Insignia Development 6889 Rowland Road Suite 100 Eden Prairie, MN 55344 Dear Don Uram: As you are aware, at the January28, 2008, New Hope Economic Development Authority meeting, the EDA approved a motion authorizing the first amendment to the interim agreement with Insignia Development. This amendment extends all deadlines within the original agreement by one year. Thanks for attending the meeting a signed copy of the agreement and resolution are enclosed. We look forward to continuing to work with you over the next year on the proposed redevelopment of the Bass Lake Road Apartments site. If you have any questions please give me a call at 763 -531 -5137. Sincerely, Curtis Jacobsen Community Development Specialist Enclosures CC: Valerie Leone (improvement project file #795) CITY OF NEW HOPE 4401 Xylon Avenue North e New Hope, Minnesota 55428 -4898 ® www. ci.new- hope.mn.us City Hall: 763 -531 -5100 ® Police (non - emergency): 763 -531 -5170 ® Public Works: 763- 592 -6777. TDD: 763- 531 -5109 City Hall Fax: 763- 531 -5136 ® Police Fax: 763- 531 -5174 . Public Works Fax: 763- 592 -6776 FIRST AMENDMENT INTERIM AGREEMENT This the First Amendment to the Interim Agreement by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority ") and Insignia Development LLC, a Minnesota limited liability company (the "Developer ") entered into this 28th day of January, 2008. WHEREAS, the Authority and the Developer have entered into an Interim Agreement whereby they have agreed to negotiate exclusively with each other for a period of time toward the potential redevelopment of the Bass Lake Road Apartment site; and WHEREAS, due to a downturn in the housing market the Developer has asked that the Authority for a one year extension on all timelines in the Interim agreement; and WHEREAS, the Authority can see the benefits to both parties by extending the timeline that currently exists; and WHEREAS, the Authority desires to have a release clause included along with and extension of the basic agreement timeline. NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each of them does hereby agree as follows: 1. Extended Timeline. The Authority and the Developer agree to extend the timeline in the original Interim Agreement by one year for all items innumerate within the agreement. 2. Release of Obligations. The Authority and the Developer agree that should an opportunity become apparent for either or both parties prior to the first revised submission date making it necessary to seek a release from their obligations within this agreement they will meet the following minimum requirements. (a) The Authority shall provide the Developer with 45 days advance notice regarding its termination of this agreement. (b) The Developer shall provide the Authority 45 days advance notice prior to tendering its withdrawal from this agreement. First Amendment Interim Agreement January 28, 2008 Page 2 IN WITNESS WHEREOF, the parties have caused this Amendment to the Interim Agreement to be duly executed in each of their names as of the date first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA By: President By: �a Executive Director INSIGNIA DEVELOPMENT, LLC t By: r Its: lGl1` COUNCIL V1q Request for Action Originating Department Approved for Agenda Agenda Section Community Development September 22, 2008 Planning and Development Item No. By: Eric Weiss, CD Assistant By: Kirk McDonald, City Manager Curtis Jacobsen, CD Director 8.2 Resolution requesting the Hennepin County Housing and Redevelopment Authority (HRA) allow an expansion of eligible uses and extension of project deadline to Hennepin County's Transit Oriented Development grant program for funds to assist with the redevelopment of the Bass Lake Road Apartments site (8400 and 8420 Bass Lake Road and 8401, 8411, and 842158t' Avenue) (improvement project no. 795)` Requested Action Staff requests the City Council approve the attached resolution requesting alterations to the Cooperative Agreement between the Hennepin County HRA and city of New Hope for Hennepin County's Transit Oriented Development (TOD) grant program. Staff recommends that the city request an expansion of grant funds eligible uses for the $100,000 allocated towards the construction of a bus shelter and a two year extension of the required project completion date to December 31, 2010. Policy /Past Practice City goal #2 emphasizes the maintenance and redevelopment of commercial and residential properties within the city. The city seeks to move toward its goal through targeted redevelopment projects, such as the proposed redevelopment of the Bass Lake Road Apartments site. Because of the high costs associated with redevelopment, the city seeks grant assistance, whenever possible, to improve the financial feasibility of projects. Background The city, in an attempt to acquire additional funds to support the redevelopment of the Bass Lake Road Apartments, applied for a TOD grant from Hennepin County. In June of 2006, the city was awarded a TOD grant in the amount of $350,000 for improvements to the Bass Lake Road Apartment site and surrounding area to make the area more transit friendly. The city was awarded $250,000 for the expansion of the water main to the Bass Lake Road apartment site and $100,000 for the construction of a bus shelter. The signed Motion by \ , i- Second by To: adi 't =) ( 36 I: \ RFA \ PLANNING \ Livable Communities \ Bass Lake Road Apts \ Q & R- Resolution approving extension for TOD grant.doc Request for Action, Page 2 of 2 September 22, 2008 Cooperative Agreement (June 2, 2006) between the city and the county states the project is to be completed by December 31, 2008. Staff has met with Hennepin County staff to discuss the project deadline. County staff suggested that because the city has made significant progress on the redevelopment of the Bass Lake Road Apartments - including the purchase and demolition of the apartment complex - that the city would be a good candidate for an extension of the project deadline by two years. City and county staff also discussed the possibility of expanding the eligible uses for the $100,000 in funds allocated for the bus shelter to also include pedestrian and safety improvements. County staff has suggested the city is a strong candidate for those changes as well. If approved by the Hennepin County HRA, the city would have until December 31, 2010, to complete the authorized work. The city would move forward with the water main project as approved in the original Cooperative Agreement. As for the bus shelter funds, the city still intends to install a bus shelter at Bass Lake Road and Xylon Avenue. Staff has received estimates from two bus shelter companies and has determined a single bus shelter could be customized, purchased and installed for well under $20,000. The city will request that the additional funds be permitted to be spent on pedestrian and safety improvements such as pedestrian street lighting, sidewalk improvements and street furniture. The pedestrian and safety improvements, along with the bus shelter, will help to create a pedestrian and transit friendly environment and a cohesive corridor streetscape. Attached is a draft letter from staff to Hennepin County HRA requesting the grant changes and explaining the progress and future plans for the project. The letter explains that due to market conditions the project is on hold but that the city fully intends on pursuing a residential redevelopment project once market conditions improve. Recommendation/Next Steps The attached resolution expresses support for the grant changes and requests approval from the Hennepin County HRA. Staff recommends approval of the resolution. If the Council approves the resolution, city staff will forward the signed resolution and letter requesting grant alterations to the appropriate Hennepin County staff. From there, county staff will present New Hope's request to the Hennepin County HRA in November. Attachments 1. Resolution 2. Cooperative Agreement - June 2, 2006 3. Letter to Hennepin County HRA and attachments City of New Hope Resolution No. 08136 Resolution requesting the Hennepin County Housing and Redevelopment Authority (HRA) allow an expansion of eligible uses and extension of project deadline to Hennepin County's Transit Oriented Development grant program for funds to assist with the redevelopment of the Bass Lake Road Apartments site (8400 and 8420 Bass Lake Road and 8401, 8411, and 842158th Avenue) (improvement project no. 795) WHEREAS, the Bass Lake Road Apartment site (the "Site ") consists of approximately 3.5 acres of land with five tax parcels at 8400 and 8420 Bass Lake Road and 8401, 8411 and 8421 - 58th Avenue; and, WHEREAS, the city plans to redevelop the Site into for -sale multi- family housing with an emphasis on transit, walkability, and general improved quality of life in the corridor; and, WHEREAS, the city sought grant funds to make the project financially feasible by assisting with the redevelopment costs; and, WHEREAS, in 2006, Hennepin County HRA awarded the city a $350,000 Transit Oriented Development (TOD) grant to support multi - jurisdictional Transit Oriented Development housing and redevelopment projects located adjacent to transit opportunities; and, WHERAS, the city purchased and demolished the site in the summer of 2008 in preparation for residential TOD redevelopment; and, WHERAS, due to market conditions, redevelopment plans have been put on hold and will resume when market conditions have improved; and, WHERAS, the city is requesting an extension of the project deadline as outlined in the Cooperative Agreement from December 31, 2008, to December 31, 2010, and an expansion of eligible expenses for the $100,000 allocated towards the construction of a bus shelter at Bass Lake Road and Xylon Avenue to include pedestrian and safety improvements; and, NOW, THEREFORE, BE IT RESOLVED, the City Council of the city of New Hope, Minnesota supports the Transit Oriented Development grant request for changes by the city of New Hope for the Bass Lake Road Apartments redevelopment site. Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 22nd day of September, 2008. September 23, 2008 Hennepin County Housing and Redevelopment Authority 417 N. 5th St, Suite 320 Minneapolis, MN 55401 Dear Hennepin County Housing and Redevelopment Authority Commissioners, As you are aware, in 2006 the city of New Hope applied for and was awarded a Transit Oriented Development (TOD) grant in the amount of $350,000 to support the city's "Village on the Green" project. Since then the city has made extensive progress on the project, but due to market conditions the project has stalled and consequently the progress on the TOD improvements has been put on hold as swell. Due to market conditions and the financial status of the developer, the project will be different than as proposed — although a high density owner- occupied resident development remains the city- desired product — and most likely a new developer will be chosen. The city fully intends on moving forward with the housing project when the housing and financial markets improve. At this time, the city would like to request an expansion of eligible expenses for the $100,000 in grant funds originally allocated for the construction of a new transit shelter on Hennepin County Road 10 (Bass Lake Road) in support of the housing project to include pedestrian and public safety improvements. The city would also like to request a two year extension on the project to December 31, 2010. Progress to date: The city of New Hope has for years been actively pursuing the purchase and redevelopment of the Bass Lake Road Apartments site (Bass Lake Road and Yukon Avenue). The 60 -unit apartment complex had been a problem property for decades and an eye sore for residents and users of the adjacent golf course. Negotiations for the site purchase finally came to a close in May of 2008 when the city purchased the properties from the owner for $2.25 million. ! i' 4401 Xylon Avenue North ® New Hope, Minnesota 55428 -4898 ® www. ci.new- hope.mn.us City Hall: 763 - 531 -5100 ® Police (non - emergency): 763- 531 -5170 ® Public Works: 763- 592 -6777 ® TDD: 763- 531 -5109 City Hall Fax: 763- 531 -5136 ® Police Fax: 763 - 531 -5174 ® Public Works Fax: 763- 592 -6776 In the summer of 2008, the five apartment buildings were demolished and the site cleared (photographs enclosed). Currently, the site has been seeded for grass and the space will be used as an interim green space. The city has made significant progress on this project and is prepared to move forward with site planning and development once market conditions approve. Status of Grant Authorized Work: The city was awarded a TOD grant in the amount of $350,000, of which $250,000 was allocated for the installation of an expanded water main on Hennepin County Road 10 (Bass Lake Road) and $100,000 for the construction of a new transit shelter on Hennepin County Road 10. The city fully intends to begin and complete the water main project in the near future with the $250,000 allocated grant funds. In reviewing the project needs and potential costs, the city has determined the $100,000 bus shelter funds may be best spent under an expanded set of uses. Request: The city is requesting the Hennepin County HRA Board expand eligible uses for the $100,000 bus shelter grant funds to include pedestrian and safety streetscaping improvements - in addition to the bus shelter already allowed in the grant award - to improve the accessibility, safety and appearance of Hennepin County Road 10 and future TOD residential development. In researching bus shelter cost estimates, the city has determined $100,000 will be more than adequate to construct a bus shelter at Hennepin County Road 10 and Xylon Avenue. From the initial cost estimates the city has received, a bus shelter could be customized per the city and county's desires, purchased and installed for under $20,000 (that number being on the high end of estimates). The city believes that the remainder of the funds could be better spent on other transit oriented improvements such as increased lighting, pedestrian access and street furniture. Such improvements should increase ridership of bus routes along Hennepin County Road 10 as the improvements, when included with the bus shelter, would provide a safer and more comfortable space for transit users and pedestrians. At this point the city has not determined the specifics or the extent of the pedestrian and safety improvements but the intention would be to match the bus shelter and streetscaping improvements to provide for an aesthetically pleasing corridor. The city is also requesting an extension to the project completion date deadline of December 31, 2008, as written in the cooperative agreement to December 31, 2010, to allow the city time for market conditions to improve. To date the city has not expended any TOD funds on the project. Currently, the city is working with the developer to determine if they will be able to move forward with the project. It is likely the city will need to do another Request for Proposals to attract a new developer. No recent market studies have been conducted since the change in the housing and financial markets. Attached is an approved resolution from the New Hope City Council supporting the expanded eligible uses and two year project extension. If the Hennepin County HRA Board approves the city's request, staff will begin work on preparing for bus shelter and streetscaping improvements in the near future. Thank you for your consideration of the city's request. Sincerely, Curtis Jacobsen Community Development Director Attachments: Pictures of Bass Lake Road Apartment demolition and site clearance Bus shelter estimates Cc: Patrick Connoy, Economic Development Project Coordinator Patricia Fitzgerald, Senior Planning Analyst Kirk McDonald, New Hope City Manager Eric Weiss, Community Development Assistant Air-Flo Smoking Shelters Pricing Guide for Shelters and Options 4 6 T# Stoll 10'2 12 14'1" 16 4 $1,926 6 $2,406 $2,938 DUO-GARD will design any custom — size and configuration your organization requires, � ' � i Prices effective July 1.2OO7 Prices subject to change without notice. ` Our shelters are shipped knocked-down and require assembly and installation, Prices do not include foundation, shipping or installation. Installation available nationwide, Please consult our Engineering Services Department for recommended foundation opecifimations. Engineering and design services are available for larger and custom size units. All dimensions are +- 1~ We reserve the right to improve our product without notice, Cancelled orders subject to minimum 2O% restocking charge. All shipments F.D.B. Canton, Michigan, unless apacifiodotherwise. I il L I 3 GPUNWALD STREET CLIFTON, NJ D7013 • 973 -614 -9800 • FAX 973 - 614 -8091 0 BUS PASSENGER SHELTER ROOF DESIGN MOUSE SAW! PRICES ARE FO.B CLIFTON, NJ ALUMINUM: 313 DARK BRONZE ANODIC FINISH 10% DISCOUNT GLAZING: 1/4" CLEAR TEMPERED GLASS BENCH: EXTRUDED ALUMINUM ROOF: ROOF DOMES: 1/4" WHITE TRANSLUCENT ACRYLIC BARREL ROOF: 1/4" TWIN WALL POLYCARBONATE POLY HIP ROOF: 1/4" TWIN WALL POLYCARBONATE RIDGE ROOF: ALUMINUM STANDING SE4,11 NOTE: Poly Hip Roof can be ridge vented at no additional charge. e-mail: staff@handi-hut.com website: hftp://www.handi-hut.com January, 2007 3 GRUNWALD STREET: CLIFTON, NJ 07013 • 973-614-1300 • FAX 973-614-8011 ACCESSORIES FOR PASSENGER & SMOKING SHELTERS DESCRIPTION PRICE 12", 775 CFM FAN $200.00 36" ALUMINUM DOOR $550.00 ASHTRAY $92.00 BOTTOM CLOSURE PANELS: MODELS 4-2 (10'0 60") $465.00 MODEL S 6-2 (15'0" X 5'0") $640.00 MODEL S 6-3 (160" X 7 $725.00 MODEL S 4-4 (10'011 x 10 1 0)) $640.00 MODEL S 6-6 (15'0 X 15 0 11 ) $915.00 HEATERS - Infrared Heater - 1500 W 120 Volts $495.00 with Wall Thermostat LIGHTS - Flourescent with Wall Switch Sensor $340.00 SIGNS -"'Designa-ted-Smc)king-A-rea" $52.00 WINDOWS - Projected $345.00 BENCH: Free Standing 6'0" Length $220.00 Pedestal 6'0" Length $210.00 411" e-mail: staff@handi-hut.com website: hftp://www.handi-hut.com July, 2006 ��1'1�4�Ift Hennepin County Department of Housing, Community Works & Transit 417 North Fifth Street, Suite 320 Minneapolis, Minnesota 55401 -1362 612 -348 -9260, Phone 612- 348 -971 b, Fax 612- 596 -6985, TDD/TYY www. co. hennepin.mn.us /tcw /welcome.htmi November 24, 2008 Curtis Jacobsen Community Development Director City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: Hennepin County Contract No. A061043 First Amendment Dear Mr. Jacobsen: Attached please find Hennepin County Contract No. A061043 First Amendment which extends the term and makes a minor modification to Attachment A. Please review the amendment and have all three originals signed and returned to me. Please continue to keep me informed of progress on this project. If you have questions call me at 612 -543 -0864. st Enclosure An Equa/Opportunity Employer Recycled Paper Hennepin County Contract No. A061043 FIRST AMENDMENT TO COOPERATIVE AGREEMENT FOR VILLAGE ON THE GREEN This First Amendment is made and entered into by and between the County of Hennepin, State of Minnesota, a public body corporate and politic, hereinafter referred to as the "COUNTY," A -2300 Government Center, Minneapolis, MN 55487, and City of New Hope, a public body corporate and politic, hereinafter referred to as the "CITY," 4401 Xylon Avenue North, New Hope, MN 55428, and the Hennepin County Housing and Redevelopment Authority, a public body corporate and politic, hereinafter referred to as the "HCHRA," 417 North Fifth Street, Suite 320, Minneapolis, MN 55401 -1362. WHEREAS, the parties entered into Contract No. A061043 (the "Agreement ") as authorized by Hennepin County Resolution No. 06 -10 -563; and WHEREAS, the Agreement between the parties provides $350,000 for completion of improvements as part of the Village on the Green Project and disbursement of funds by December 31, 2008; and WHEREAS, the CITY has commenced the Project by acquiring property, abating and demolishing buildings and will complete the construction of the eligible activities for the Project by December 31, 2010; and WHEREAS, the parties agree the term of the Agreement should be extended. WHEREAS, the parties agree that Attachment A of the Agreement should be modified. NOW, THEREFORE, the parties agree to amend the Agreement as follows: A. The first sentence of Section 1 of the Agreement shall be amended to read: 1. Term of the Agreement The CITY agrees to complete the Project described in Section 2 by December 31, 2010. B. The original Attachment A is replaced with the revised Attachment A attached to this Amendment. Except as herein amended, the terms, conditions and provisions of the original Agreement shall remain in full force and effect. The CITY and the HCHRA having signed this Amendment, and the Hennepin County Board of Commissioners having duly approved this Amendment on the day of , 2008, and pursuant to such approval, the proper COUNTY officials having signed this Amendment, the parties hereto agree to be bound by the provisions herein set forth. COUNTY OF HENNEPIN ATTEST: Deputy /Clerk of the County Board Date: Chair of Its County Board Date: Assistant County Attorney Date: Assistant/Deputy /County Administrator Date: M e Assistant County Administrator — Public Works Date: Assistant County Attorney Date: Department Director, Housing, Community Works and Transit Date: �► t Chair of Its Board Executive Director By: 2 C 1' � �, , �i. �� _�� � � y CITY OF NEW HOPE ATTACHMENT A Authorized Work $250,000 Installation of a new water main on Hennepin County Road 10 (Bass Lake Road) in support of the Village on the Green Project. $100,000 Construction of a new transit shelter and related pedestrian improvements on Hennepin County Road 10 (Bass Lake Road) in support of the Village on the Green Project. $350,000 Total