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a oroject, refer to th(;�. agenda packetsm PROJECT No. 793 Tax - Forfeited Land 2/27/06 Resolution requesting approval for new public use of tax - forfeited land (improvement Res. 06 -43 project 793) Item 8.3 3/27/06 Update on the potential development of the city -owned property near the railroad at project no. 793) 52nd and Pennsylvania avenues (improvement 4/24/06 Approval of final RFP /RFQ for city -owned property near railroad between 52nd and Item 8.5 Pennsylvania avenues (improvement project no. 793) 4/24/06 Motion authorizing staff to obtain quotes for appraisals of the city -owned property near no. 793) Item 8.6 52nd and Pennsylvania Avenue North (improvement project 4/24/06 Motion authorizing staff to obtain a preliminary survey of the city -owned property near no. 793) Item 8.7 52nd and Pennsylvania Avenue North (improvement project Item 8.3 6/26/06 Preliminary review of development 793) Loup�ana avenues (improvement project no 5 Avenue between Pennsylvania and (extend deadline) Item 8.2 9/25/06 development Louisiana avenues (mp ovem property ent project no. 793) enue Update on the po and between Penn y lvan and Avalon named preferred developer; authorized staff to negotiate an interim agreement to be brought back to Council later this fall Res. 06 -154 10/23/06 Resolution approving an interim ag t with Avalon Homes, Inc. for development e Avenue between Pennsylvan a and Louisiana city -owned property south of project no. 793). Avenues (improvement owned Avalon Homes a and Item 8.1 11/27/06 Discussion of Louisiana avenues and bewween Pennsylvania property south of 52 a Aven ue nd of concept and approval to proceed to (improvement project no. 793) Acceptance Planning Commission process l the f May Res. 07 -77 5/14/07 Resolution approving public hear ng date nd city g of New Hope and approval of Avalon Homes, Inc., a y 29, 2007 (improvement project no. 793) Add conservation easement (for preferred trees). be - occupied sales. Add language to Exhibit B clarifying that first sales shall owner Item 7.1 5/29/07 Resolution authorizing si g n atures o Avalon Homes, Inch for development to be known as Prairie sale of city -owned land to Sommer /Nolte — postpone discussion to Ridge Subdivision (improvement project no. 793) hearing to 6/11/07 6/4/07. Stauner /Nolte - continue public forr the sale l of resolution c ity-owned land to 7.1 6/11/07 Continuation o ndul hearin Item the purchase a de velo pm e nt agreement for development to be known as Prairie Ridge Subdivision (improvement Homes, Inc. project no. 793). continue hearing to 6/25/07 Continuation of public hearing for then d e Subdivision (improvement project of for d Homes, no Inc. Item 7.1 6/25/07 793) development to be known as Prairie Continue to 7/23/07. Item 11.1 6/28/07 Special Meeting — discussed purchase agreement. Item 7.1 7/23/07 Continuation of public hearing for R d l e Subdiv�s one(improvement pr development no. 793) or development to be known as Prairie g Continue to 8/13/07 m 7.2 8/13/07 Reconvene public hearing, close ned land to Avalon Hames�Inc. forbdevelopm nt to be Ite related to the sale of public -o known as Prairie Ridge Subdivision (improvement project no. 793). Postpone discussion. Item 8 9/24/07 Discuss sale of city -owned land to Avalon and interim Homes (Prairie Ridge) (improvement project no. 793. Terminate negotiations Mimi To: New Hope Planning Commission From: Kirk McDonald, Community Development Director Curtis Jacobsen, Community Development Specialist Date: February 23, 2006 Subject: Discussion regarding development of railroad property Requested Action ests that the fanning commission provide input a nd feedbac staff o�cil on Staff requ P the potential development of the vacant city owned site near 52nd and Pennsylvania avenues policy/Past Practice on the vacant city-owned The city has received intermittent proposals from developers to build ho ar developers have asked to land near 52nd and Pennsylvania avenuesov r the no pursued this m the past. purchase the land for development, but th e c ty has Background etation, such as as lon been owned by the city, and is largely wooded with f mil lue ve to the north The land h g . The cottonwood trees. The property abuts the railroad developable acres. Its dnig c currently zoned R -1. The city's site is 7.97 acres in size, with about comprehensive plan identifies the site as a potential development 0 p er dev opable ar compreh p e ($150,000 to occurred on the site, but value estimates vary, o ccurred l o O the proper P 40 homes were built on the site $1.2 million). Environmental testing has 000 each, the development would generate $49,000 per year (5 units /acre gross density), selling for $250, olice occasionally respond to in property taxes for the city, about $187,000 total property tax. Also, p reports of transient persons living on the prop p ty The timeline of development related requests follows for your information. 1976- Roger Scherer, of Scherer Brothers Lumber, proposes an 18 sm gle family home development. Planning Commission and City Council both approve development p lans. G: \commDev \Planning \Reports \Memo development of railroad property 1977 to 1979- Scherer abandons development plans, offers land to city. The city prepared plans to develop fourteen affordable, owner- occupied houses. These plans were developed, discussed at length, and ultimately the Council denied the preliminary plat application. April 1998- Bill Oelkers /Alan Chazin Homes proposed a 40 -lot development on site, aimed toward older residents living independently. The proposal did not move forward, as the residents and majority of the Council preferred that the site remain green. September 1999- Eagle Crest Developers /Land for Sale, Inc. proposed 30 single level townhomes in four seven -unit buildings and one two -unit building, again conomic Development Authority (EDA to marketed towards the 55+ age group. This proposal was also rejected by the majority of the New Ho preserve recreational and green space. The EDA also expressed concerns over train whistle noise. September 2002 - The Livable Communities Task Force discussed the property in a meeting, and some committee members recommended it remain undeveloped, while others recommended developing the land. July 2004- Ryland Homes proposed 33 -35 single family, attached oned discussion on twice on the matter, and the the Winnetka Green phase three proposal. The EDA postp proposal was dropped after the second postponement. During 2005, two development firms expressed interest in the for the Bas Ryland Lake Road Inc. again submitte a proposal for the site along with its proposal redevelopment. The owner of Kingsman LLC, Peter Long, also submitted correspondence indicating interest in the site. Long constructed the small house on Angeline Drive, and purchased a lot in Hillside Terrace where he is currently constructing a large home. Because of the interest from developers, at the October 3, 2005, work session staff requested that the Council reexamine the potential for developing the property. The Council expressed interest in possibly selling the property to a developer and directed staff site. The Council indicated tht they would proposals (RFQ /P) to solicit development proposals for the e. prefer to see upscale single- family homes on the site. Two factors tie into the discussion regarding the proposed development of the property near 52nd and Pennsylvania avenues. First, as discussed at the Council work session, if the land sale occurs, the sale agreement could incorporate required improvement� Avenue concerns allow regarding the establishment of a railroad quiet zone. The quiet zone ould eliminate some feasibility of the site for development, and alleviate a major noise source for neighborhood homeowners. Secondly, there is a 0.72 acre parcel to the west of the primary 7.97 acre site. The small parcel is tax if the forfeited property and is technically the property of the te. The ld need t buy the parse from state, city wants to include this parcel in the development, the city but could utilize for utility purposes or petition through the county to expand the authorized use for the G: \ CommDev \ Planning \ Reports \ Memo development of railroad property site. At the February 27 c i ty council meeting the city attorney was authorized to pursue an expansion of the use for the site. At the city council w ork session on January 17, 2006, the city council reviewed re ested input�anQ adding d to the discussion with the possibility of the Staff s er tly assembling informat on related to this feedback from the planning commission. St nd has met with the city planner and engineer regarding potential lot layouts and opportunity a infrastructure costs. m time staff is working the dual tracks of putting together an ILFPiRFQ for development At this point p r o pe r ty and also information for the possibility of the city developing the p ro p er March 8 Tanning Staff a asks that you give these ideas some thought and come p p a ii e becomes a P a ilable commission meeting. We will provide you with additional in fo r matio n Tannin commissioners will be forwarded to the city council before additional Comments received from p lanning steps are taken. Attachments: RFA, January 17 city council work session Minutes, January 17 city council work session Comprehensive plan excerpts Maps Engineer's correspondence Planner's correspondence City Report Article G: \CommDev \Planning \Reports \Memo development of railroad property COUNCIL o ffi v 1 Originating Department Community Development B Kirk McDonald, CD Director Curtis Jacobsen, CD Specialist M Request for Action Approved for Agenda 2 -27 -06 I for New Public Use of Tax - forfeited Land Resolution Requesting Approva Agenda Section Development & Planning Item No. 8.3 4 Requested Action the is currently ouncil approve the attached resolution requesting an ex pansion t o y f the authorize Staff requests that the City C pp use fora p arcel of tax - forfeited property, located adjacent to the railroad property p studying the feasibility of developing. policy /Past Practice considered the potential development of this property on several ity, The city has provide more upscale housing p and is currently considering development toe or construct on of the quiet one improvements in that area of opportunities and to possibly provide funding the city. Background of the Cit ouncil at the January 17, 2006, work session. The parcel This parcel was brought to the attention' County and the city ur oses at this time due to deed restrictions. Attornee S�ondrall proposed that the can be used only for utility p p city ursue a change /expansion of the authorized us f rel'mmary discussions h the c they appeared Yp council was agreeable with that recommendation. p blic park and o pen space ues, to be amenable to such action. The proposed expansion would add edestrian t ails and bike trails including but not limited to the development and construction o p edestria n of the resolution. . The planning commission will be discussing the potential development of authorized uses for the property p er at the March 7th, planning commission meeting. St aff recommends app t he p ro p tY Second by Motion by '' To: a <ftr /fit .r� U I :RFA \Planning \ Planning \4 &R -New Use Tax - forfeited Property Funding The change /expansion of the authorized use has no charge associated with it. Attachment(s) Resolution City Attorney letter Application I:RFA\ Planning \Planning\ Q&R-New Use Tax - forfeited Property JENSEN & SONDR.ALL, P.A. Attorneys At Law GORDON L.JENSENr CLARISSA M. KLUG GLEN A. NORTON AMY E. PAPENHAUSEN STEVEN A.SONDRALL ARIC T. STIENESSEN STACY A. WOODS February 17, 2006 $525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK MINNESOTA 55 TELEPHONE (763) 424-$$11 TELEF e('163) 493-5193 e - mail law @j e VIA E -MAIL TO c'acobsen ci.new -ho e.mn.us AND BY REGULAR U.S. MAIL OF COUNSEL LORENS Q. BRYNESTAD Curtis Jacobsen Community Development Specialist City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Re: Resolution Requesting Approval For New Public Use of Tax- Forfeited Land Our File No.:99 -1 1315 Dear Curtis: 27 Council Meeting a proposed Resolution Please find enclosed for consideration at the February ark and Requesting Approval For New Public Use of Tax- For fa c hange of use to include park t e - tracks - We are previously indicated by City -owned land north the construc t of edestr an and bike trails. As open space uses including is not suited for storm water ponding. the City Engineer, the property by the an exhibit to the resolution is the application to st th I will be r esponsible for Also attached as art the change of u p Mayor and submitted to the County 1lcation and submitting our request to the County. obtaining the Mayor's signature on the app Please contact me if you have any further questions about the resolution or the application. Very truly Yours, Steven A. Sondrall, City Attorney, City of New Hope JENSEN & SONDRALL, P.A. sas @j ensen- sondrall.com After Hours Extension #147 E cc: Kirk McDonald 'Real Property Law Valerie Leone Specialist Certified By The Minnesota State Bar .Association P:Vlttorney \SAS \1 Client Files'�2 City of New Hope \99 - 11315 (Ryland Development) \C. Jacobsen ttr re reso changing use. o Admitted in Iowa RESOLUTION NO. 06- 43 RESOLUTION REQUESTING APPROVAL FOR NEW PUBLIC USE OF T-23-00 FEITED LAND PID 08 S BE IT RESOLVED by the City Council of the City of New Hope as follows: AS by State Deed No. 128459, dated September certa 19 the d real WHEREAS, y ) a use d Minnesota deeded to the City of New Hope (the Cit by estate legally described as: That part of SW '/4 of NW '/4 lying Northeasterly of R.R. right of way, Section 8, Township 118, Range 21, (the Property); and WHEREAS, use of the Property under said deed was limited to utility purposes; and WHERE is S the Property is vacant and is non -conse n atia e rt y �cha nt fie as PID immediately adjacent to and west of ° sin le development under the City 08- 118 -21 -24 -0001 designated C ity- o wne d f housing " develo p e g Comprehensive Plan which will be redeveloped in the immediate future; and AS this Council has concluded that the current 1i he pro erty to th its potentially WHERE Permit the City to utilize p utility purposes is not broad enough top greatest ublic benefit from the Property, and highest and best public use and thereby derive the p « as well as the City generally, WHEREAS, the use of the City s development property' , d and greatly benefited if the City is able to use the Pro perty Onst O will be enhance open space uses including, but not limited to, the development any purpose, and of pedestrian d trails and bike trails within the Property in addition to its current unlit p� Use of WHEREAS, the City wishes to make an -Application for Approval of a New U Lands" in a form as attached as Exhibit A to this reso ce uses including, but not for P o Tax - Forfeited public park and open p City be permitted to use the Property the development and construction of pedestrian trails and bike trails in addition limited to, utility purposes; and the AS the City agrees to pay all administrative c d t re ord a State t Deed WHEREAS, State of Minnesota, through Hennepin County, to obtain an effectuating the requested change in public use; and AS it is in the best interest of the City of New Hope to request this change for WHEREAS the State of Minnesota as described above; the public use of the Property from 1 1. 2. 3. 9 NOW THEREFORE BE IT RESOLVED: That the above recitals are incorporated by reference. That the classification of the Property as non - conservation is confirmed. City Attorney is hereby authorized and directed submit t oval of ate o Th the, the City , , A pp li ca tion Minnesota, through Hennepin County, Tax - Forfeited Lands" in the form as attached as E s A to ace uses the Use of public ark and op p property for utility purposes p d bike trails within the Property and p p development and construction of pedestrian trails an City Attorney is authorized and directed to take orth step s as are necessary to That y as set complete the change in public use of the Property Dated the 27 day of February, 2006. p artinE.e , S PMayor Attest:�� Valerie Leone, City Clerk p:\Attomey\SAS \I Client Files\2 City of New Hope \99 -11315 (Ryland Development) \99 - 11315- 003 - RESOLUTION FOR NEW USE doe FA EXHIBIT A 961(Rcvtsea Application for Approval of a New Use of Tax-Forfeited Lands (Minnesota Statutes, Section 282.01, Subdivisions 12 through 1e) In Hennepin County ojgovern�e, lauTirlivLrion(applicanl) City of New Hope Name MN 55428 4401 Xylan Avenue North, New Hope, Mailing address ofappiicant: ..r _ ge tember 2, 1966 Stare deed nrmrber; 1284 59 pare state deed tss �m nthJ (�Y) ^-- (year_ --� --- --- roe Include the ncrMe of the cityltown in which the properly is located): barter of -g' Northeasterly p rrYl Quar of the Northwest Q All that part of the Southwest Q Northeasterly of Section 8, Township 118 Notth, Range 21 West lying the Northeasterly line of the Minneapolis, St. Paul and Sault Ste• Marie Railroad right of way. viously conveyed be specific, including e statut or special law Describe the knkended public use for which the prop was pre rcferenecs.ifrclerant)= utilities ors cial law references, if Doc ribe the new public use for 711s e property that is being raquesmd ( specific, including slam to but not l imited relevant): ;jtilities, park and open space including, ti 7e tai ,nn o Ae e5 roan an -- eve opmentw anu . .a THIS TXSTRUMENT WAS AttAFt F,D BY' Jensen & Sondrall, P•P'' Su 201 liarne 8525 Edinbrook Crossing, ite Brookly Park, MN 55443 Address STATE Of UDNMTA ss. ENNEPIN 7 s that helshe is the authoriizci County of H being first duly sworn, deposes and say p ucation and knows the p em Sr. g Martin E • P liwnt named herein that helshe has read said a p representative of the governmental subdivision {asp ) e and correct. Mayor contents thereof, and that the matters stated therein ore tru Title Name Subscribed and sworn to before me this ')0 0 6._ day of County, Minn, Notary Public, My cuamtissionexpires - .��- ---- Return aPP -CIon to: r'1 N Npartmcat of Revenue • Property Tax Division •Matt Station 3340 • St PAUL, MN u tdb3344 JENSEN & S®NDRALL, P.A. Attorneys At Law GORDON L. JENSEN CLARISSA M. KLUG GLEN A. NORTON AMY E. PAPENHAUSEN STEVEN A.SONDRALL ARIL T. STIENESSEN STACY A. WOODS OF COUNSEL LORENS Q.BRYNESTAD March 1, 2006 Y 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443 -1968 TELEPHONE (763) 424 -8811 $ TELEFAx (763) 493 -5193 e -mail law @jensen- sondrall -com Marilyn Bell Hennepin County Taxpayer Services Division Tax Forfeited Land Division A -600 Government Center Minneapolis, MN 55487 -0060 Re: PFD 08- 118 -21 -2 -0001 Our File No. 99.11315 Dear Ms. Bell: lease find In follow up to our recent conversations in connection followingdo ume the referenced property, p enclosed from the City New Hope the 1, Application for Approval of a New Use of Tax - Forfeited Lands, and oval For New 2. Certified Copy of New Hope Resolution No, 06 -43 Requesting App Public Use of Tax - Forfeited Land. 's a lication through the approval process for a new use of the Your assistance in seeing the City pp subject property will be greatly appreciated. Please contact f ete this have an y questions or I need to supply you with any additional information Very truly yours, Steven A. Sondrall, New Hope City Attorney JENSEN & SONDRALL, P.A. sas @jensen- sondrall.com Direct Dial- (763)201 -0 Enclosure(s) cc: Kirk McDonald Curtis Jacobsen Valerie Leone 'Real Property Law Specialist Certified By The Minnesota State Bar Association P: \Attomey \SAS\1 Client Files \2 City of New Hope \99 -11315 (Ryland Development) \M. Bell ltr submitting application use change.doc Form 961 (Revised 71,1017) Application for Approval of a New Use of Tax- Forfeited Lands (Minnesota Statutes, Section 282.01, Subdivisions 19 through 1e) In Hennepin County Itcaat city of New Hope 55428 Mailing address ofapplt Nameoj $ove rnmentalzuhrlivirl�n(apP lon Avenue North, New Hope, MN canr: M 4401 Xy 1966 Se tember 2, State deed nun+ber: 1284 59 Date state deed issue nth) •• �•• � � ° `- (year) Legal descrtptton ojproperry the name ojthe city/town to which the property is lo (include cated): art of the Southwest Quarter of the Northwest Q uarter of All that p No of Section 8, Township 118 Notth, Range 21 west lying of the Minneapolis, St. Paul and Sault Ste. the Northeasterly line Marie Railroad right of way. Describe the intended public use for which the properly was previously conveyed (be specific, including statute of special law rcforences.ifrelnv.mt)' utilities thaz is being requested (be specific, including statute or special taw references, if Dwribe the ne w public use for the property but not limited to, relevant): Utilities, park and open space ineluesiri an i e rat s eve opment an con ion o p THIS iNSTRUMb'NT WAS DRA D BY: Jensen & Sondrallr P s i ng , 201 Name 8525 Edinbrook r 55443 Brook Park, Address S'ws of M[NNirSOTA ) ss. County of HENNEPIN _ _____ _ ) thu Martin E . Opem Sr. . being first duly sworn, deposes and says that lica and j knows the ovetnmental subdivision (applicant) named herei th hc/sht h s read said app representative of the g Mayor contents thereof, and that the manors stated therein are true and correcu Title fw -- subscribed and swo to bofore me this 20 06 day of _ _-h- STEVEN A. SONDRALL County,Minn, NOtc1r� �'ublic Minnesota Notary Public, _ 2 mm: -.. _ re ar. 31 2070 j.) n , 3 of L► I +►,� ..., My commission expires ..- MPi cut of Rcvcuuc • rruperty Tax Division • Mail station 3340 • St Paul, MN s- 41*1340 Return application to: (7cpnrtm RECONRaNDATION OF COUNTY BOARD UPON APPLICATION County, Minnesota, has rcvicwed the application the County Hoard of , 20 — , for the approval of anew dated of beard recommends that this application be: authorized Public use of certain tux' forfeued land described them m The county rejected ____ granted Date Signature (for the County Board) OFFICE OF THE COMMISSIONER OF REVENUE , zo_________ St. Paul, Minn., Upon due consideration of this npplication it is ordered that it is hereby: rejected — grn� STATE OF MINNESOTA COmrnisgoncr of Revenue uLai, Section 270.02, Under deles+�tion Pvravnnt to Minnesota $lnt Subdivision 2 STATE Of t4lNgESOTA ss. County of Ram cy _ before me personally appeared day of ____ on this sionet of Revenue of the State of y appointed rcptcacn tative of the Cvnuni s Minnesota, to me known to be the Person who executed the foregoing co statutes in such canveyance in behalf of the state of Minnesota and die dut acknowledged that he executed the name as die f ree act and decd of said state pursuant to the se made and provided. Notary Public TOTAL P.03 Leone Valerie From: Steven Sondrall [SAS @Jensen- Sondrall.com] Sent: Thursday, March 02, 2006 3:25 PM To: Leone Valerie Subject: RE: tax forfeited property 52nd /Pennsylvania sted uses on the n recovey the property back to the State. They will issue e e y o u r diary system and ask me deed. There is no date We don't need to that needs to be scheduled, however, you may ant to put about it in June.'< Steven A. Sondrall JENSEN & SONDRALL, P.A. 8525 Edinbrook Crossing, Ste. 201 Brooklyn Park, MN 55443 -1968 Direct: (763) 201 -0211 Fax: (763) 493 -5 E -Mail communications may be sas @Jensen- sondrall.com of this E -Mail deems (if any) cannot message and attachments communication between lawyer and client, The American Bar Association deems 9 -Mail a valid authorized form o WARNING: Actual receipt of E-mail communications should not be assume intercepted or inadvertently misdirected however security Client. be assured. unless the text indicatese the ise, this E of mesney/ and attachments (if any) shall not e deemed legal advice, nor does it create If you received this If the reader of this message is not the intended recipient or author ized to deliver it to the intended recipient, dissemination, distribution or copy of this communication is p communication in error, please immediately notify sender via E -mail reply. From: Leone Valerie [ 02, 20 2:15 cPM w hope.mn.us] Sent: Thursday, To: Steven Sondrall 52nd/ Pennsylvania Subject: tax forfeited property Can you clarify for me ?... you are submitting an application to request a change in the allowed use of the tax - forfeited property near Ik now y 52nd / Pennyylvania. I recently re read your letter dated Nov 17, 2005, and wondered if t {the dates on futu ebagenda" to the property but { first reconvey the property back to the state ........ if so, I'd like to pu Valerie Leone, New 1-Iope City Clerk 763- 531 -5117 Phone 763 - 531 -5136 fax 3/2/2006 GORDON L. JENSEN' JOHN W. MUELLER GLEN A. NORTON AMY E. PAPENHAUSEN STEVEN A.SONDRALL ARIL T. STIENESSEN JENNIFER C. TOOBEY OF COUNSEL LORENS Q. BRYNESTAD ENSEN & SONDRALL9 P.A. Attorneys At Law September 18, 2006 Valerie Leone City Clerk Ci`t-y of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Re: Tax Forfeited Land North of the Railroad Track Our File No.: 99.11315 Writer's Direct Dial No.: (763) 201 -0211 e -mail sas @jensen- sondrall.com Dear Val: Please find enclosed for the City's file a September bor a , letter I use regarding he referen confirming the acceptance for our application property. Also enclosed in the letter is the original of our application with the recording information contained thereon. Please contact me if you have any questions or comments regarding this document. Very truly yours, Steven A. Sondrall, City Attorney, City of New Hope Enclosure(s) cc: Kirk McDonald, Community Development Director (w /enc.) Curtis Jacobsen, Community Development Specialist (w /enc.) P: \Attomey \SAS \I Client Files \2 City of New Hope \99 -11315 (Residential Development) \99 - 11315- 005 -Val Ltr.doc 'Real Property Law Specialist Certified By The Minnesota State Bar Association 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443 -1968 TELEPHONE (763) 424 -8811 • TELEFAx (763) 493 -5193 e -mail law @j ensen -sondr all.com HENNEPIN COUNTY TAXPAYER SE D ECTION ENT TAX- FORFEIT & PROPERTY R EVE NU E A -600 GOVERNMENT CENTER 300 SOUTH 6TH STREET MINNEAPOLIS, MN. 55487 -0060 Date: �" - 0 0 00 Property ID No.: ' Property Address: Dear Purchaser or Repurchaser of Tax- Forfeited Land: As art of the Purchase/Repurchase Contract, you agreed to' provide us with p Failure to do so could result in the proof of insurance on the above listed property. must contain surer, a as loss pay ee, A -600 G cancellation of your contract. The insurance policy listing the State of Minnesoa, MN 55487 -0060. Tr Please provide this proof of Government Center, Minneapolis, insurance as soon as possible to the above mailing address. Enclosed you will find the recorded Auditor's C ertificate f for Repurchase of Forfeited Land Contract, or County Auditor's Receipt and Contract r applied in this case, for the above noted property. Our Tax- Forfeited Land, whicheve office has provided the service of recording this docume t his C will proceed to ° payment for Deed status. When the final aym is made o the ownership from the State of Minnesota to order and record a State Deed, transferring the purchaser or repurchases. Enclosed you will find a recorded State Deed transferring the ownership of the above noted property from the State of Minnesota to the purchaser or repurchaser of this .Our office has provided the sery ice of recording this document on your behalf. prop ' Even though this information is now recorded in the he my R corde s Office or the Registrar of Titles office, fut ° reference. If you have any questions, document in a place of safe keeping, f o please call (612)- 348 - 3734 Deputy Tax- Forfeit & Property Revenue Section MINNESOTA e REVENUE To: All Governmental Subdivisions receiving "use deeds" From: Property Tax Division, Minnesota Revenue Re: Tax - Forfeited Land(s) Recently Acquired via "Use Deed'.'..:.. Recently you acquired one or more parcels of tax - forfeited property via "use deed" from the State of Minnesota. This notice is being sent to provide some simple reminders regarding property acquired by this method. If after three (3) years, you have not put the property to its approved public use, or have abandoned that use, you are required by statute to either 1) purchase the property; or 2) reconvey the property back to the State of Minnesota. Three years from the date of the deed, Minnesota Revenue is required by statute to verify your use of this property. The property you. have acquired shall remain in your possession as long as it continues to be put to its authorized public use. Unless your deed so states, transfer of ownership of the property to a eversio party is of the property back back to the abandonment of use, which can result In r p State of Minnesota. Any questions regarding the property you have recently acquired can be directed to the contact information listed below. Tel: 651 -556 -6085 Property Tax Division Fax: 651 -556 -3128 Mail Station 3340 TTY.- Call 711 for Minnesota Relay St. Paul, MN 55146-3340 sin equal opportunity- employer Doc No 4251743 04/27/2006 11:00 AM Certified filed and or recorded on above date: Office of the Registrar of Titles Hennepin County, Minnesota Michael H. Cunniff, Registrar of Titles TransiD 213183 New cert Cert 1167349 a` Deputy 27 Fees $1.50 AF $10.50 STATEFEE $34.00 TDOCFEE $0.00 TSUR $5.00 CF $51.00 Total / - FX*—Ue Form 961 (Revised 71L "7 °) ,Application for Approval of a $ u� S Use ubdivis la h, through 1a Lands (Minnesota Statutes, Section 2 in Hennepin County y Of New t, cit Hope v :u: 554 28 Name ofgovenunerrtalsubdivtvian (a pp °Ie�•. t�cant: 4 401 X Avert 1966 Marling address of app ' Datsstatsde�d issued Sete L)r_.?' �Ycar -- State deed number: 128459 (month) We tncludethe> ra+ neojthecity /towuartereOfpeYhetNorthwest' Quarter Of Legal descrlptlonojproperry( North`essterly of All that part of the Southwest Q e 21 West lying Section 8, Township 118 North, Rang olis, St. Paul and Sault Ste. the-Northeasterly fine of the Minneap Marie Railroad right of way. 00 ©t t?- - 1 ! $ - � i - :2 3 " spe cial law was reviouslY conveyed (be specific, including statute of Describe the intended public use for which the property was refer nces,irmicyant): utilities diet is being raque4md (he specific, including statute or special taw reference4, if en space including, but not limited for Describe the new public use for the property r ai s 11 r elevant): Utilities, park cons run ion o pe es rian an .L e eve opment an TEAS INSTRUMENT WAS ADD BY: Jensen & Sondrall P•A• Suite 201 �_ Name 8525 Edinbrook Crossing,n,,(c. Brook Par k MN 55443 } = 19r 3� SOTA° a ;: $ 1 �t i vATE of MWr ) ss. county of HEED' — 3 d and says that helshe is the authorized E . Opem Sr being first duly sworn, ep uses aid app lioatton ,arts knows the Martin hclshe h s rwd s representative of rs the governmental subdivision (upptiwnt) named he th Mayor and that the matte stated therein are true and correct: Tit contents thereof. 07 � Na - Subscribrd and swo 10 bervre me this ' 06 day of �7 �EN A. SOND �jL�t1 �I � r 1 � C Minn. fypta ubliC-M1SlrtGS0tA Notary Public, 2010 _ �� 31 2 r C' � rrr •. _ ar.31 ires — w r;V.: vvvrN My commissionoxP Leation to: lt1N I]epnrtmeat or Revenue • Property Tax Division = Mait Station 331Q St Paul, ltrN 5 5140 lieturn app �� .'� COUNCIL 8.3 By: Kirk McDonald, CD Director Curtis Jacobsen, CD Specialist BY' i 52nd Avenue and Between Resolution Authorizing Appraisal of City Owned Property Located Near Pennsylvania and Louisiana Avenues Re nested Action e uotes, select an appraiser and approve the resolution fo appraisal of the 8 acre, city -ow an a Staff requests that the City Council review th q ned parcel adjacent to CP Railroad land and single family rest 52nd and Pennsylvania Avenues. P contracted olic Pas with an appraiser to determine th In the past, the city has e value of city -owned property and as awarded to the lowest responsible quote provider. quotes for an appraisal of the Back round staff was authorized to solicit At the April 24, 2006, City Council m eetin g property along the railroad tracks between 52nd and Pennsylvania avenue• At det it requested . s ugge s ted an ap could co st from $1,500 to $3,000 depending on the level that pp received four quotes related to the appraisal of this p Appraisal Cost Comparison Total 7.97 Acre 0.72 Acre Appraisal Company $1 $3;950.0 $2,450.00 ,500.Od Herman Appraisal Services $1,500.00 $4,400.00 $2,900.00 Hosch Appraisal and Consulting $3,500.0 $8,000.00 $4,500.0 Meeks Appraisal and Consulting $3,000.00 $6,000.00 $3,000.00 Shenehon Company SECOND BY t� --- MOTION BY - _ [ A rasials Authorization.doc I: \RFA PLANNING PLANNING Q & R RR Pro er Staff recommends that the City Council approve Herman Appraisal Services, the lowest responsible quote provider, as identified above. Eundinp r out of EDA funds and ultimately be reimbursed from the sale of The appraisal will initially be paid fo the property. Attachments: • Resolution • Herman appraisal quote • Hosch appraisal quote • Meeks appraisal quote • Shenehon appraisal quote May 9. 2006 3�03PM REQUEST FOR QUOTE APPRAISALS CITY OWNED PROPERTY 52ND HOPE, MINNESOTA VE NEW RF Due 5/9/200 4 _�-m: City of New Hope Attn.: Curtis Jacobsen Community Development Specialist 4401 Xylon Avenue North New Hope, MN 55428 Dear Council Members: being f with all factors and died the attached description of, hereby proposes to furni sh everything necessary to The undersigned, having stu ast thereof, other conditions affected the work and c fete the project in accordance with the attached description of work. comp P T .,.,,n q „m Ouote City -owned 7.97 acre parcel Adjacent tax - forfeit land, 0.72 acres Total Cost to reject any all t is u nderstood that the owner retains the righ stood that goof s er. It s a In submitting this quote proposal i _ quotes and to award the quote in the best interests of the ° date onzthis re quest for proposal quote form. not be withdrawn for a period of 30 days after the dea Respectfully submitted, Firm Agent Address M City, State & Zip Code AAA printed Name of Agent Telephone No. Date REQUEST FOR QUOTE APPRAISALS CITY OWNED PROPERTY 52ND AND PENNSYLVANIA AVE NEW HOPE, MINNESOTA City of New Hope Attn.: Curtis Jacobsen Community Development Specialist 4401 Xylon Avenue North New Hope, MN 55428 Dear Council Members: RFQ Due 5/9/2006,4 p.m. The undersigned, having studied the attached description of work, being familiar with all factors and other conditions affected the work and cost thereof, hereby proposes to furnish everything necessary to complete the project in accordance with the attached description of work. Total Cost In s miffing this quote proposal it is understood that the owner retains the right to reject any and all quotes and to award the quote in the best interests of the owner. it is also understood that quotes may not be withdrawn for a period of 30 days after the deadline date on this request for propo ote form. F�/ w j 4 �IVI REQUEST FOR QUOTE APPRAISALS CITY OWNED PROPERTY 52ND AND PENNSYLVANIA AVE NEW HOPE, MINNESOTA City of New Hope Attn.: Curtis Jacobsen Community Development Specialist 4401 Xylon Avenue North New Hope, MN 55428 Dear Council Members: M INE RFO Due 5/9/2006.4 p.m. The undersigned, having studied the attached description of work, being ern h liar wit all f a to oth conditions affected the work and cost thereof, hereby propos complete the project in accordance with the attached description of work. City -owned 7.97 acre parcel Adjacent tax - forfeit land, 0.72 acres w� 11.11 $3,500.00 Total Cost $8,000.00 In submitting this quote proposal it is understood that the owner retain s t r i g ht to reject any understood that quote all quotes and to award the quote m the best interests of the owner. it not be withdrawn for a period of 30 days after the deadline date on this request for proposal quote form. Respectfully submitted, Meeks Appraisal & Consulting, Inc. Firm T. Meeks'" Kevin - --'-- Agent Printed Name of Agent 3144 Hennepin Av enue, suite 202 (612) 822 -7999 Address Telephone No. Minneapolis, M 55408 City, State & Zip Code May 8, 2006 Date REQUEST FOR QUOTE APPRAISALS CITY OWNED PROPERTY 52ND AND PENNSYLVANIA AVE NEW HOPE, MINNESOTA R FQ Due 5/9/2006, 4 p.m. City of New Hope Attn.: Curtis Jacobsen Community Development Specialist 4401 Xylon Avenue North New Hope, MN 55428 Dear Council Members: and un dersigned, having studied the attached description of work, being ver tthinglnecesosary to The other r e gn conditions affected the work and cost thereof, hereby proposes to furni complete the project in accordance with the attached description of work. App raisals $3,000.00 City -owned 7.97 acre parcel $3,000.00 Adjacent tax - forfeit land, 0.72 acres Total Cost $6,000-00 s u b this quote proposal it is understood that the owner retain s th�agr und od that quotes d a Ins Y g quotes and to award the quote in the best interests of the owner. It is a not be withdrawn fora period of 30 days after the deadline date on this request for proposal quote form. Respectfully submitted, Shenehon company Firm Ag t 88 South Tenth Street, Ste. 400 Address Minneapolis, MN 55403 City, State & Zip Code John G. Flaherty Printed Name of Agent 612 333 - 6533 Telephone No. May 5, 2006 Date City of New Hope Resolution No. 2006 -14 Resolution Authorizing Appraisal of City Owned Property Located Near 52nd Avenue and Between Pennsylvania and Louisiana Avenues WHEREAS, the city of New Hope has solicited quotes for an appraisal d �o�t'S' own en in located near 52nd Avenue and between Pennsylvania an the city of New Hope; and 't received four quotes for the provision of appraisal services according to WHEREAS, the c ity the city's solicitation; and the app arent low quote was received from Herman Appraisal Services in the WHEREAS, t of $2,450.00 for the appraisal of the 7.97 acre p lea land adjo and the e amour appraisal of the additional 0.72 acre parcel of tax for ei larger parcel. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the city of New Hope, Minnesota, as follows: 1. To authorize the appraisal of the 7.97 acre parcel of city owned property for $2,450.00. To authorize the appraisal of the 0.72 acre parcel of tax - forfeited property 2. for $1,500.00. Adopted by the City C of the city of New Hope, Hennepin County, Minnesota, this 22nd day of May, 2006. M Attest: City Clerk 4y l i i May 23, 2006 Ms Ellen Herman Herman Appraisal Services 801 Nicollet Mall, Suite 2000 Minneapolis, MN 55402 RE: Appraisal Services Dear Ms Herman n last evening, the COUncil awarded P sylvan a and At the Ne w Hope City Council meeting Of the city owned property located near 52nd ars � Ave form to �between $3,950.00. hework appraisal o rovided. The completi Louisiana avenues. The coun cil pDpeo x pt ion op rk previously p should proceed acc Thursday, June 22, 2006 . date for the appraisal ari raisal to the city would be project an earlier completion and submission of the app As with y p greatly appreciate on to this matter. If you have an y questions or concerns T h an k you for your prompt att enti please do not hesitate to contact me at 763- 531 -5137. Sincerely, Curtis Jacobsen Community Development Specialist Kirk McDonald Development Director of Community CC: Dan Donahue, City C e tiger Valerie Leone, City C ITY OF NEW H OPE Minnesota wwtiv. ci.new -hope. )D-. 7 X lon Avenue North - New Hope, public Works: 763 - 592 -6777 , TI?D: 763 - 531 -5109 55428 -4898 ` 4401 y g cy 763- 531 -5170 i Hall: 7- 0 Police (non -emer en C - 36 4 Police 4 � public gc Works Fax: 763- 592 -67 City Fax: 763- 532 -517 63531 -5 City Hall Fax: 763 -531.. 5 Council KI; Origi� g Department Community Development R f Action Approved for Agenda May 14, 2007 Agenda Section Development and Planning Item No. By: Kirk McDonald, Director CD 8.2 Curtis Jacobsen, CD Specialist L -, e in the purchase and development agreement betw e n r 29, 2007. R approving the languag p u blic hearing Inc., and City of New Hope, Minnesota and authorizing setting (Improvement Project No. 793)' Requested Action uncil review and approve the language of the p o u Prairie Ridge subdse and n Staff requests that the C ity Co g p latted ll agreement with Avalon Homes, inc., for the city owned property being, mil lots and authorize setting a public hearing date for the sale of the land for the development of 17 single family on May 29, 2007. Policy /Past Practice development agreements for the sale of City owned parcels The City has entered into purchase an d as required by law. The public hearing for the sale of this piece of previously following public hearings property could be held on May 29, 2007. Backgrou Council gave planned unit development and pre liminary plat approval The On March 6, 2007, the New Hope City g ase and development agreement with the meet ro osed for the city owned property commonly referred to as the to the develop p P city attorney and staff have worked its ne gotiating the final fo m a nd s aaff recommends approval. preferred developer. The documen t is in that a ublic hearing be conducted prior to the t the conc lusion of the Minnesota State Statutes require P ed Therefore staff recommends that the public hearing be conduct tares on She purchase an d development public hearing the City Council will be asked to a uthorize agreement. Second by Motion by To & R - Purchase and Development Agreement - Prairie Ridge.doc I \IZFA \PLANNING \PL ANNING \Planning \4 J 6 O� . Page 2 May 14, 2007 Request for Action Funding e Cit will receive $646,000.00 for the sale of the land. A portion of the With the completion of this sale thy y ilroad quiet zone improvements and for sanitary sewer lift station income from this sale will be used to fund ra improvements. Attachment(s) • Resolution • Purchase and Development Agreement I. RFA\ PLANNING \PLANNING\Planning\ Q & R - Purchase and Development Agreement - Prairie Ridge.doc RESOLUTION NO. 07- 7 7 Reso approving language of the purchase a nd development agreement Res p between Avalon Homes, Inc., and the c ity of e date for th Minnesota le of the land and setting May 29, 2007, as the public hearing WHEREAS, the city es the of New Hope, Minnesota, desires to sell for development pY to s ed south own as property commonly known Pennsylvania and Louisiana av enues; and of 52nd Avenue between Penn y ' has through the Planning Commission an d the t of said site; rand wed WHEREAS, the city evelopmen the development plans and the plat for the d WHEREAS, the plans lans and plat for the development of said site have been lan d to be acceptable and in compliance with the city s c omprehensive T RESOLVED, by the city of New Hope, Minnesota, to approve and NOW, THEREFORE, BE I authorize as follows: 1. Approve the language in the purchase and development agreement for the sale of the public property. the date for a public hearing on the sale of public property 2. A uthorize setting for May 29, 2007. ew Hope, Hennepin County, Minnesota, this 14th Adopted by the City C of the city of N day of May, 2007. Mayor Attest: Cit Clerk PLANNING \PLANNING \Planning\ Q & R - Purchase and Development Agreement - Prairie Ridge.doc I: \ ItF A \ (DRAFT) PURCHASE AND DEVELOPMENT AGREEMENT This Purchase and Development Agreement ( "Agreement ") is made by and between " and the CITY OF NEW HOPE, and MINNESOTA, ("Seller") AVALON HOMES, Inc. a Minnesota corporation (` `Bu er Y ) . In consideration of the covenants shall sell and Buyer shall purchase 97 ac es (more or less) parties as hereinafter set forth, Seller Hope commonly referred to as the property south of of vacant land located in the City of New Hop lvania and Louisiana 52 nd Avenue and north of the Soo Ling railroa 1 t racks 4 - 001 b etween and legal d scribed on Exhibit A Avenues North identified as PID no. 0 attached hereto and made a part hereof (the "Property"). based on the Property being 1. rice for the Property is bas Purchase Price. The purchase p er lot. Based on the p d lat of the 000.0 p platted into 17 individual resi pri Hundre Forty -six Thousand and No /100 Dollars Property, the purchase pr ice shall be t ri 3 initial payment of which the Buyer shall pay as follows: an hall be paid to the Seller ($646,000.00) (the Purchase Price-), y , which sum s Thousand Ten Thousand Dollars ($10,000.00) (the "Earnest ement 'an ash on the " Date d Six Hundred Thirty-six Closing", as that upon Buyer an Sellers execution of this Ag Dollars ($636,000. payable by wire, cashier's check or ce and agree the purchase tern is defined in Section 4 below. The B d C ordance with this $38,0 in a 00.00 per lot pric is price will be adjusted upwards or downwards ermitted by the platting process an at closing. y d tha based on the actual number of residential lots p Buyer understands the purchase price provision shall survive the delivery of the deed es per of lots allowed o� the number of lots n excess of 17. Seller will be increased by $38,000.00 lot times the number understands the purchase price will be decreased by O o per ledge and agr ee a final plat has allowed by the platting process short of 17. Both p Bu er further acknowledges been submitted for approval establishing 17 lots for the Property. y with the exception of the termination or cance llation all be deemed none to and agrees tha t , ent sh refundable a breach by the Seller, the $10,000.0 Earnest Money p y m On the Date of Closing, the Seller shall deliver a Limited Warranty ed. 2. Title Convey marketable title of record, free and clear of liens, Deed (the "Deed ") to the Buyer conveying for the "Permitted Exceptions ", as that term is encumbrances, assessments restrictions, except defined below. resent Re resentations and Warranties by Seller and Buyer. The Seller and Buy er represent 3. A and agree as follows: The Seller owns the Property grid has the right to sell the same, and that there are a) no unrecorded contracts, leases, easements o o° a other of the Property, and third party affecting the use, title, occupancy f refusal, op tion or other right to acquire no person, firm or entity has any right o t the following: a sanitary sewer easement except all or any part of the Property P o ver the west 7.5 feet and a construction easement over the west 30 feet oft the property as evidenced by Document No. 3142713. 1 The Seller shall cooperate with the Buyer in the Buyer's efforts to obtain the b) roval of all public or governmental authorities as to ama street c lud in gib t app subdivision, conditional u perm not limited to zoning, ens ace, tree preservation, infrastructure, access, grading, park area, trails, op p management and /or other similar requite d a storm water en m an of g l family residential" zoned housing development in vidual residential lots, together with all necessary site p improvements up-redthe° indi Property (collectively, the "Imp rovements "). The le f homes on the residential herein shall mean the construction of 1 t sing Y covenants against the lots in accordance with recorded restrictive bui ed a part of the Seller's Property acceptable to the Seller and app Buyer's Post - closing i governmental planning process subsequent to closing (see Buy lications and h 16 Seller shall join i srnnentalpor regulatory construction covenant /par be necessary or required by g other documents as may for the Improvements. Notwithstanding any bodies to develop the Property Seller's obligations under this Section languag e in this Agreement to the contrary, the reasonable exercise of the City 3(b) shall not be construed to limit in any way subdivision or planning case of New Hope's discretion in considering any submittal or application per the New Hope City Code or Minnesota Statuteo� relating to the subdivision/platting and Restprictive Covenans e� d to construction of the Improvements thereon The construction standards: herein shall include at a minimum the following (i) Minimum Market Value per house: $320,000 to $390,00, Ramblers - minimum foundation of 1,250 square feet Two story - minimum finished square footage 1,800 square feet iv) Modified 2 -story - minimum foundation size of 1,150 square feet, ( finished square footage of 1,500 square feet, ( Split style - minimum (vi) Minimum 6/12 roof pitch (Vii) Brick, stone, stucco, cement board, vinyl exteriors, provided that 20% of (v ) the front elevations, exclusive of doors and windows, shall be brick or stone ( ) viii Three car garages encouraged and two car permitted with 24 foot depth (ix) Landscaping per City of New Hope requirements ( Establishment of architectural control committee 2 0 The Parties warranties and representations contained in this Subsection 3 shall survive the delivery of the Deed* overnmental authority The Seller has not received any notice from any eg al taxing district, or d) condemnation, sp concerning any eminent domain, rezoning proceedings. ot Property is not subject to any assessment or valuation agreement that the e ) The Prop Y listed as one of the Permitted Exceptions, o et eatened special assessments or Seller has not received any notice of actual reassessments of the Property. f) To the best of the Seller's knowledge without inquiry there are no wells or septic systems on the Property• and ents that it has the requisite power and authority signed intto g) Seller repres Seller's Closing Documents perform this Agreement and any ud ment, order or decree of any Court document s will not be in violation of any j g accordance with their and binding obligation to which Seller is a party and such documents are and will be valid or arbitrator m s of Seller, and are enforceable ac terms. " "forei n artnership, " "foreign trust" or "foreign h) Seller is not a "foreign person, g p 445 of the Internal Revenue Code. estate" as those terms are defined in Section 1 previously disclosed to the Buyer, the Seller has not received notice of i) Except as pre Y condemnation or proceedings of any kind any action, litigation, investigation, ainst Seller or any portion of the Property . pending or threatened ag J) To the best k of Seller without inquiry, no above ground or underground tanks are located in or about the Property. Buyer to re resentations shall be grounds for Buy any b n the event och o f the suoch e rm the Earnest terminate this Agreem Money shall be returned. The Seller agrees that ent. representation is made "to the best knowledg ledge of Seller. Seller," representation re Wherever herein a p or and /or City Manager is limited to the actual knowledge of the May ONS BY THE SELLER, THE SUBJECT TO THE FOREGOING REP - AT THE E BUYER IS gOPE Y. PROPERTY- BUYER HEREBY ACKNOWLEDGES THAT SE OF THE RASING THE PROPERTY IN "AS IS" CONDITION AS TO THE U lated by this er's obligation to close the transaction contemp31, 2007: 4. Conditions of Offer. The Buy conditions on or beforeMay Agreement is subject to the satisfaction of the following on 7 below, have reasonably a) The Buyer shall, pursuant to the terms e. S n such determination the determined that the Property is marketable. In making is currently, Buyer specifically agrees and acknowledges that title to the Property 3 and if the Buyer proceeds with closing will be, subject to the following title matters (collectively, the "Permitted Exceptions "): any lien of real estate taxes not yet due and payable in 2007; (i) feeders, laterals grid rights -of- -way for drainage ditches, drain tiles, underground pipes, if any; (iii) all dedicated rights -of way; (i all other easements, restrictions, covenant e B d agreements intended use of the depicted by the public records, so long as Y Property is not materially imp such matters of record as determined by the Buyer in Buyer's reasonable discretion. b) Obtaining subdivision/ platting approval for a minimum of 17 residential usetpermits, Property and all zoning cha Vg governmental permits,iconsents and authorizations, which subdivisions and any other g Property, are necessary or desirable for Buyer's intended use of the Pro erty, without limitation, building permits for the construction of 17 single family homes on the Property. s and conditions reasonably acceptable to the c) Obtaining financing under term Buyer for the purchase of the Property. the Buyer on or ver occurs sooner, this Agreement shall become before May 31, 2007 o condition of this Section 4 remains unsatisfied or has not been waived by they null and vo id If any which r the date of closing, ' neither parry shall have any further obligation ine the forocont under this need exercise folowing the id, Bement). With respect to the above -d scrib Agreement for d failure than rights or obligations under this Agreement which pro cancellation or other termination of this Agr 2007, or the date of closing, favor of the Buyer, the Buyer shall give notice or of its before May 31,inate this in f eriod to satisfy or fulfill any of said conditions on dition shall be deemed to be waived o whichever occurs sooner, but if no notice of termination on given within the specified time p by with respect to any of the conditions listed above, such c the Bu er shall proceed to close this transaction in accordance with the other terms the Buyer and y Agreement. and conditions of this Ag the property Buyer agrees it will pay all necessary costs to survey p p y 5. Survey and Plat. The Buy g re ared by a duly licensed surveyor in for development. The Buyer agrees it will have a survey p p 'on of the final plat of the curre minimum standard detail requirements for ALTA/ASCM land title accordance with the as well. The surveys. The Buyer agrees that the Survey shall be used r o f a the Property Property, and agrees to pay all costs related to the platting aiding platting shall survive the Closing and the delivery of the obligations of the Buy er re g Deed. agents, and contractors shall The Buyer and its employees 6. Access Prior to Closing. for the purpose of conducting examinations, making have the right to enter upon the Property g g as the and per forming such tests or surveys thereon (including soil borings measurements p 4 ' the Property and actions thereon shall be subject to Seller's Buyer desires. The Buyers access to reement which will not materially approval and, if requested by the Seller, a written access ag ert The Seller agrees not to er's testing and inspection of the Prop Y The Buyer agrees interfere with the Buy royal for Buyer to have access to the Property agents, or unreasonably withhold its app damages caused by the Buyer or its employees, repairs to to promptly repair or restore f m such examination, measurements or t it agrees to contractors during the course of making the Seller and he Buy be performed in any reasonable manner specified by to ees, agents, consultants and officers) the loss, liability, cost, damage or injury asserted against indemnify and hold the s Seller (an alaimseller's emp Y to attorneys' fees, related to harmless from and again Y including but not limited to ees, or suffered by the Seller or the Property, of its agents, representatives, contractors or emp Y any entry by the Buyer, its assigns or any as related to this Agreem ent. The repair and indemnification obligatio�eement� in this Section shall survive closing or the cancellation or other termination of this g 7, Title Commitment and Policy. all deliver to the Buyer a Commitment for an ALTA Form B own and a) The Seller sh issued by a Land Title Comp Y policy of title insurance (the "Commitment) issuance of the le to the Prop, in the amount of the P onaand rice. The Seller covering tit erty , p repara t ion agrees to pay the costs associated e `'�'remium for he owner's policy, if any, and Commitment; the Buyer shall Pay p endorsements requested by the lender's policy, if any, along with the price for any the Buyer or the Buyer's lender. shall have fifteen (15) days after receipt of the C cep on tontitle to r that s b) The Buyer and to object to any and approve the title to the Property or which o otherwise discovered by the disclosed in the Commitment and Survey 15 day period B Y such exceptions u er. In the event that the Buyer does not withi h e then all such exceptions give notice to the Seller objecting to any nsidered a p a rt of the Permitted shall be deemed approved an d shall be co If the Buyer timely objects to an exceptioex ettionthhe Seller shall Exceptions the Buyers notice of P the tenth (10) day following remove the exception or notify the Buyer that the Seller is unwilling or unable to days of any notice by the Seller that the remove the excep elect b notice to tion. Within five exception to title, the Buyer may Y Seller it is unable to remove an excepti Y the Seller to either: t this Agreement, whereupon all of the release t from all hall fur ther �i) term Buyer and the par returned to the Buy ties shall b Agreement which obligations hereunder except olifbllowingn�he this cancellation or other provide for continued exerci termination of this Agreement; or uyer elect to have this Agreement remain in e exception and the (ii) elect previousl will be deemed to have app roved same shall be considered part of the Permitted Exceptions. E 8. Closing. the a) Closing shall occur within ten (10) busi no e ent lafter than June 2 � 2007 (the Agreement have been satisfied, an "Date of Closing" or "Closing "), unless both parties agree, in writing, to an earlier or later time. b) Closing shall, at the Seller's sole option, occur at the New Hope City Hall, or the office of the New Hope City attorney. C) The Seller shall deliver at closing the following executed and acknowledged documents: (i) the Deed; it affidavit(s) in industry- standard form(s) stating that possession of the () Property is being delivered free of any mechanic's or statutory liens in connection with work performed prior to closing; the Seller is not a foreign person or entity; and addressing such other matters as the Buyer may reasonably require; and 9. Payments /Prorations. The Seller shall, on or before the Date of Closing, pay for the costs relating to the Commitment. At closing, the Seller shall pay the cost of recording any this instrument (other than the Deed) necessary to place title in the ondi ior tuting a lien Agreement, State deed tax, and all special assessments levied, pending or s of against the Property as of the Date of Closing, includ real estate taxes the year closing. t The special assessments and interest payable with genera all Seller will pay general real estate taxes payable in t of the owner policy or lender policy o f itle prior years. The Buyer shall pay at closing the cost insurance (if any), sales tax (if any) resulting from the Closing, and the fees required for recording the Deed. The Seller and the Buyer ea closing p t d by the Seller a f o f customary the General real estate taxes payable in the year of hall be p Buyer as of the closing date based upon a calendar year. 10. Condemnation. If, prior to the Date of Closing, all or any part of the Property shall be option of (a) condemned by governmental or other lawful autho B n sha have all condemnation completing the purchase contemplated by this Ag reement canceling this Agreement, m proceeds or claims thereof shall be assigned to the Buyer, or (b) g which event the Earnest Money shall be refunded an d to the other sha be or obligation n either party having any rights against or obligat ions ation or under this Agreement which provide for contin eller shall be entitled to any clos nd all conde other termination of this Agreement, and the proceeds. deemed to have 11. Notices. All notices required hereunder shall b writin of theb am in the mail if been duly given and received (a) two (2) business Y after depositing to whom directed, at sent by regular, registered or certified mail, postage prepaid, to the party such party's address herein set forth; (b) upon delivery, or attempted delivery if delivered by 0 and delivery; (c) or upon transmission if esscor facsimile transmitted overnight courier service or hand other add by facsimile. Any party shall have the right to designate any for notice purposes by written notice to the other party in the manner aforesaid. The addresses of the parties are as follows: SELLER: City of New Hope Dan Donahue, City Manager 4401 Xylon Avenue North New Hope, MN 55428 -489 Facsimile No.: 763 -531 -5136 Steven Sondrall, New Hope City Attorney with copy to: Jensen Anderson Sondrall, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 Facsimile No.: 763- 493 -5193 BUYER: Avalon Homes, Inc. Facsimile No.: with copy to: Facsimile No.: all brokerage charges, if any, Buyer represents and warrants that it will pay the Buyer, with incurred 12. Broker. The Buy p to be paid at Closing. Any all such charges that have been invoiced as of the m connection with this transaction as a resin ate of Closing to be pa y d claims for a e commissions required by this Section 1 ess the Seller d or at tanyClosing, an payment of brokerage and hold harml further agrees to indemnify r the cancellation or other ultin from Buyers purchase hereunder of subject Property - The not sooner. Buyer brokerage commission res g rs Buyer obligations recited in this Section 12 shall survive the Closing y termination of this Ag reement. u er to the Buyer as provided defaults under this Agreement, the Seller by law- If right 10 13. Remedies. If the B y written notice on such Agreement by giving reement will terminate, and up terminate this Ag provided by law, this Ag rig hts or fails to cure such default asp art shall have any g Agreement which provide for termination the Seller will retain the Earnest or obligations d g under this A reement. If the obligations against the other except rig ed exercise o or other termination o f this be g to terminate the continued f the cancellation Agreement, the Buyers only remedy right to un this the Earnest Money paid to the Seller defaults recover Seller. Buyer shall not have any g Agreement and the remedy of specific p erformanCe 7 14. Future Access and Utility Easements. The Buy er hereby represents and warrants that the Buyer will, if requested by the City of New Hope, provide the City td as prod d Buyer's future development T the Property frther represents and easements in connection with the Buy p practices. The Buy The Buyer by New Hope's City Code, regulations and p rov at no warrants that any such easement cost to the City. s shall be p warranties contained in this Section 14 shall survive delivery of the Dee . representations and The Buyer may assign its 1�, Assignment /Prohibition Against Transfer of Property. der only with the prior written consent of the Seller, eun w hi c h co nsent or Buyer may rights and obligations her Y other person uy a be ranted or withheld by the Seller in its sole discretion. Further ement to any m Y g of the residential lots contemplated by thihereon without the l s ag convey title of anY he sin le family home improvement t written prior to the construction o f g arties hereto that Buy consent of the Seller in its sole discretion•lIs s is the ingle familyth me t on the Property be the contractor for the construction of al g Buyer agrees and covenants that the of Title. The Buy 17 single family homes (the 16, Post - Closing Construction/gevesting 3 b and ed restrictive covenants referred to in paragra w h the plans, Buyer will construct or cause to beoVOnstructed on the Prope Y dan Improvements) pursuant to the app im in accor e as part of all necessary street and utility infrastructure for the Im roved by the City of New Hopp roved by b above. The plat shall be appr oved specifications and m ate rial s process cited in Subsection 3O with the County after the closing the planning case approval p the City on or before May 31, 2007 and immediately recorded Public improvements required the Buy October 31, 2007. All 17 rocess shall be completed by Buyer. All street and infrastructure utilities, trails and of er b p shall su by the City's rvive the Y p l ann ing p subdivision and p December 31, 2010. This covenant rrie the Seller will at single family hom es romptly after const uction of each single f home for the home and delivery of the De er with a certificate of comp Buyer rovide the Buy and substance reasonably the request of the Buy p rovided in the Deed and in residential lot upon which the home was constructed shall be o p agreem in acceptable to the Buyer. Said certificate shall be ( improvements and the certificate itself) a conclusive determination of satisfaction o construct the I o f ag Buyer and its successors and assigns and covenants of the (r completion thereof as it relates to e resi to rovidea Certifacate as satisfaction of the date(s) fo p 30 days required by this Secti after written request by construction of the home thereon. If the Se ller within thirty ( )1 p ate detail the on 16 then the Seller in reasonably adequate provide the Buyer with a written statement o has fa to complete the Imp the Buyer, p Op inion prov isions in this Agreement, or the reasons ellesunder this Section 16 reasons that the Seller is of the opinion that the Buyer the in accordance with the pr re uired of that the Buyer is otherwise in default. A writing q in the opinion of the Seller, s th will be necessary, com pletion for each residential must additionally outline the measur r order ed to obtain a cart ficate of comp efault with respect to Buyer to take or perform for the Buy in es that in the event of an uncur December 31, lot. The Buyer agrees and acknruct th rovements on the residential lots by the Buyer's obligations to construct the Imp residential Lots upon which the pursuant to the terms outlined in Exhibit B a ttach ed d ed hereto and made a pa 2010 the Seller may, purs of the r been made (including the improvements or rightTe me shall hereof, declare that all rights and interests in and to any ed b this Agre required Improvements have not added to the Property after closing of the transaction contemplated Y 9 revert to the Seller. No reversion shall take place until notice is sent after the default and the default remains uncured for 30 days or more. nts Buyer acknowledges and agrees the 17. City Planning Process Minimum Requireme following requirements will be part of the City's planning process for the development of the single family residential development of the property: Buyer shall enter into a development agreement (prepared by the City Attorney) and post a financial guarantee acceptable to Seller (amount to be determined by the City Engineer and Building Official) to ensure construction of the development according to approved plans, 71 18. No amendment of this Agreement shall be valid or bin ing un 17 b) Buyer shall comply with all recommendations of the City Engineer and Buyers plans must be approved by the Shingle Creek Watershed Commission, C) Buyer's construction plans shall be approved by the City Building Official, d) Buyer must comply with all plat recommendations of the City Attorney, e) Buyer shall pay to the City in addition to the purchase price all amounts that would have been paid to build a sanitary sewer connection to the City of Crystal's system and said fees shall be applied to the lift station construction costs, f) Buyer shall pay to the City in addition to the purchase price $25,500.00 as a park dedication fee, g) Buyer shall comply with all recommendations of the City Planner as follows: (i) Demarcation posts shall be installed at the edge of the rain garden at Lots 14 and 15, Block 2 with signage to discourage trespass into the rain garden area, The trail; between Lots 1 trail easement shall ent hall be feed easement. The width of the The PUD shall require a side yard setback of 10/5 from the edge of the trail easement. The trail shall be constructed prior to the homes being built on these lots, Installation of street lights shall be a development expense of Buyer. Final street lighting plans shall be subject to City approval. (iv) Buyer shall provide one 2 1 /2 inch caliper shade tree per lot located in the front yards, (v) The fence on the south side of the plat shall be connected to the park fence in Crystal to discourage pedestrians crossing the railroad tracks. Miscellaneous. This Agreement shall be governed by the laws of the State of Minnesota. d' less executed by authorized representatives of both the Seller and the Buyer. The no beg ook to and the in erpr eation are for the convenience of the parties only and shall enforcement of this Agreement. The Seller and the Buyer ack t and an d ugly that acknowledge has had opportunity to participate in the drafting of this Ag in favor and agree that this Agreement as a whole and each of is clauses counterpart, b with t eah copy of the of or against either party. This Agreement may be sign A reement binding upon the signing party at the time of signing and together which shall g constitute a single document. to 19. Uncontrollable Delays. Whenever a period d for any delay ue to do or perform any act or thing, that party shall not b e liable or responsible strikes, riots, acts of God, shortages of labor or materials, any her or causes, wh public enemy, governmental restrictions, laws or regulations, or y similar or dissimilar to those enumerated, beyond its rea of debae control and the time to do or perform such act or thing shall be extended for the period Y The Remainder of this Page is intentionally Left Blank; Signature Page(s) Follow] 10 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the latest date indicated below ( "Effective Date"). BUYER: SELLER: CITY OF NEW HOPE Avalon Homes, Inc. By: Martin E. Opem Sr. Its: Mayor By. �— Its: Dated: , 2007' Dated: , 2007. By: Daniel J. Donahue Its: City Manager Dated: , 2007' 11 EXHIBIT A T 2e al Descripti That part of the Sout /, of the N of he Soo 1 Line right of way, Township 118, Range 21, lying North According to the United States Government Survey thereof and situate in Hennepin County Minn (abstract property) 12 1, Grantee shall not transfer title to this property without the consent of the Grantor. c omplete the construction of 17 single family M7 �'-r 2. By December 31, erty Grantee shall comp] street and utility infrastructure homes on the property along with all necessary said homes (collectively the Improvements). The improvements improvements to supp ort roved site plans and all building, must be consistent with New Hope app P latting /subdivision and zoning requirements. Grantee fails to satisfy any of the conditions contained atted and , not not released from this l 3. If Gran the sale and title to any of the lots in the property as r p re platted reversionary rsion covenant and the title to any unreleased is s pr any orhay�ap or. Any condition herein shall constitute a restrictive coven residential lot of the property which shall run with the land and is binding upon the Grantee, its heirs, successors and assigns. P:`Attome�"4SAS \1 Client Files 2 City of New Fiope,99 -11315 (Residential Development)\Purchase Agreement D2- redline.doc 13 COUNCIL o r i g i na ting Department Community Development REQUE-ST FOR ACTION Approved for Agenda May 29, 2007 Agenda Section p Hear. Item No. 7.1 By: Kirk McDonald, Director CD Curtis Jacobsen, CD Specialist BY: signatures on the Purchase and Development Ridge exsvi Tone Publ hearing ed land resolution Avalon Homes, Inc., for development to be known as Pr ubdi sale of city -own (Improvement Project 793) RE VESTED ACTION con duct a ublic hearing on the potential sale of city il is requested to consider and approve -owned owner o cup pied The City Council is requested to cond p Counc f Homes, Inc., for the develop ment of Prairie Ridge Subdivision, a 17 lot singe Y o residential subdivision. After the closing of public hearing t o ree t Prairie Ridge zin si natures on the Purchase and Development development for the sale the attached resolution a uthorizing g 7 acre for the p the 7.9 arcel of city -owned land to Avalon Homes, Inc., p subdivision. POLICY /PAST PRACTICE Prior to the sale of any city - i The past practice of the City Council has been land after Minnesota State Statutes requires that the City Council conduct a public hearing h d owned property to another public or non - public en ty. e sale and development of any city-owned into a purchase a nd development agreement for th conducting the required public hearing on said sale. BACKGROUND b the city, and is largely wooded with low -value vegetation, such as The property has long been owned y the site as a potential is 7.97 acres in size. It is zoned R -1. The city's comp3 h ears of prope ty history: development opportunity. The following outlines the pa Y Commission and City 976- Pro erty owner proposes an1S single family home development. Playm g 1 P Council both a roved development plans. SEC Y MOTION BY TO &R PxairieRidgeAuthorizedSignatures .doc I: \RFA \PLANNING \PLANNING \Planning \Q May 29, 2007 Page 2 Request for Action 1977 to 1979- Property owner a bandons development plans and offered land to city. e City city prepares plans to develop fourteen affordable, owner - occupied houses. The plans were rejected by h velo er P roposing a 40 -lot development on site aimed residents and toward older April 1998- City approached . T he e p P ' ents living proposal did not gain the favor of the EDA, as resid g independently. T of the Council preferred that the site remain green. t single-level townhome project marketed September 1999- City approached op developer s also rejected d by he majority of the New Hope EDA, to preserve towards the 55+ age group. This proposal recreational and green space. The FDA also expressed concerns over train whistle noise. d some September 2002 - The Livable Communities Task Force discussed t recommended developing the land. committee members recommended it remain undeveloped, while other on with another a 33 -35 single family, attached home July 2004 A build di build p roposes sthe t as dropped. p p p p roject in the city. The FDA postponed discussion on the matter, an p roposal he interest from j evelo ment firms expressed interest in the pro developing he Pr perty. The Council During 2005, two d p t for property to a developer and directed staff to prepare a r indicated developers, staff requested that the C o examine the potential o C expressed interest in possibly selling the pr p Y RFP to solicit development proposals for the site. e qualifications and proposals (RFQ/ ) that they would prefer to see upscale single- family homes on the site. 2006 valon Homes as the Council had completed the RFQ /RFP process and selected A B late September Ci tY preferred developer for this city -owned property. would t designs ranging from 15 lots to 18 lots f� the d d on site Avalon Homes has looked at the $38 000 per lot or $646,000 is the preferre $ subdivision, which wou pay' feet in width. configuration. To accommodate a 1 7 lot subdivision of the property it is necessary to use a Planned Unit Development PUD) allowing design flexibility, and some of the lots are less than 7 the s theV exist On ssion re arding tree preservation and the qualm dete rmi n e size nd qua lit y of the pr op , There has been much disco g o ert . The city forester has conducted a tree sura eY S on berhan site elm and various members of the poplar existing trees. The majority of trees on the site (cottonwood) family. e project, following minimum standards for t The developer p houses that T he developer has proposed for th ect, the the following M inimum p j Price s ran g standards: of 1,250 square feet • Ramblers — minimum foundation u re footage 1,800 square feet • Two story — minimum finis q foundation of 1,150 square feet • Modified 2 -story — minimum size of 1,500 square feet • Split style — minimum finished square footage I: \RFA \PLANNING \ PLANNING \Planning\ Q& R- PrairieRidgeAuthorizedSignatures .doc May 29, 2007 Request for Action Page3 • Minimum 6/12 roof pitch • Brick, stone, stucco, cement board, vinyl exteriors Three car itted with 24 foot depth • garages encouraged and two car perm g • Landscaping per city of New Hope requirements • Establishment of architectural control committee p lat for a 17 -lot, single i a roval to allow for flexibility regarding lot the Planning Commission and City Council approved the preliminary March 2007, p etitioner. The Planning s of c i t y family subdivision and a ty cod e, u n i t development Ridge e subdivision, Homes, p width requirement ty cod Pr airie Commission waived review of the final plat. to be known as Prairie Ridge a s ubdivision s uxsuant to May 2007, the City Council approved the 4 and 1 3 of the New Hope Code of lot pat for pr Chapters that will subdivide the property into Ordinances and scheduled the public hearing for the sale of the property. en u the of move - up single family housing in the Avenue and incrementally The sale of this parcel of property will op Up p 00 from the sale of the unit , enable the implementation of a railr 1 also quiet dthe c -prove e e c tyy inn etka with $64 Aven comm y, increase the city's sanitary sewer This es from the development of t land- land plus $25,500.00 in park edication to be k as City Council meeting/ the C approved thoea m TO p ed the l in the Purchase At the May 14, 2007, C y Homes, Inc., for the sale and deve and Development Agreement with Avalon lopment of viousl t not d readi y t Prairie Ridge subdivision. At the same meeting the City Council also a intended o bring to the city move up housing at a price point on the property follow changes to the agreement and fi polyrotect quality trees available. The Council re ad ded quested the fo g d to receive some assurance that the homes limited conservation easement be aed to the trees north of the drainage easement protect the only with this being filed as a separate document r the pl at would be sold to home owners not investors the words "owner occupied" were added to Exhibit B.2, after phrase 17 single family. Staff forwarded these additional requirements to Avalon Homes on May 15 for there review. ched letter from Avalon Homes requesting On May 22, 2007, staff received the at tion of ta the developers ' the Purchase and Development Agreementobao`sved upon the recommendation language m attorney. The three points addressed m the letter are as i the wording "owner occupied" to is language recommended we remove this e o i� a non-negotia gtiab 1. The City Council approved the final plat with a change tom lose p roperty. exhibit B.2. Our attorney has highly c issue for Avalon Homes and must be delete rental of single family rh� es in our pricuspbe in place City must understand that the long-term If this language m p ro fitable and would only be used as an exit strategy e ns on on the purchase agreement to close in an pursuant to the City's request, we will ask or additional 24 months until the current real estate market rebounds- w illi ng to leave 2. Our attorney has re commended we also remove the Restrictive Covenants. Avalon is w1 g I: \ RFA\ PLANNING\ PLANNING\ Planning\ Q& R- PrairieRidgeAuthorizedsignatures .doc May 29, 2007 Page 4 Request for Action reduce the with a few minor modifications: (1) remove the price range stated; (2) these in place w remove the requirement for 20% brick or requirement for rambler plans from 1,200 to 1,100 and; (3) stone. We must have the flexibility o 3. Section 15: Assign discretion of the City of New Hope. In the tw cities the ment /Prohibition Aga o T of Property. n ion er selling lots to other builders without the •Tonal builders are held to the same development market there are very few projects that have excl ive builder rights any g trend is continuing in the same need for this l as a restrictive covenants there is n Representatives from Avalon Homes will be at the Public Hearing /City Council meeting to discuss their requests. ' r equests are unreasonable in the current housing rconstructlion phase. The has Staff does not feel that all of their q minimum requirements of the developer's agreement time and it woulhe same to see this consumed a great deal of staff proceed n be m flexibility to sell to another builder who meets t o 1 100 square feet and /or the elimination would not appear to hurt the ultimate quality of the development Also if price points ca changing the size of the proposed ramblers t hat the Plaanning Commission had added, would not appreciably of the 20% brick or stone, a requirement diminish the quality of the development. implications for the city are outlined here. additional income f rom from other Should this project proceed, the financial 00.00 in park dedication t the city's r the land, $25 revenue will be used for the bring the city $646,000.00 fo, ortion fees associated with the construction of the homes. A p t , water, roads, installation of the railroad quiet zone sewer on Winnetka Avenue and for the installation rav of a lift station in the The develo er will be responsible for all the construction costs of the g project. p sidewalks, trail and storm sewer on the project. NEXT STEPS requesting changes to the purchase D th axi ent Homes, Inc., Due to this late submittal from Avalon as to th Agreement p ab 1 t it would be appropriate for the City Council to eemfmodified a brought back to t ht and points and to direct that the Purchase and Development g ent be City Council meeting. As an alternative the City Council may wish to finalize agreement wording tonig approve the attached resolution. purchase and RECOMMENDATI advise staff regarding acceptable changes t thehnext meeting for d Staff recommends that the City Cou Development Agreement an have the final document presented to the City Council a approval and authorization of signatures. ATTACHMENTS . Purchase and Development Agreement Avalon letter (May 21, 2007) Resolution Final Prairie Ridge Plat I: \RPA \PLANNING \PLANNING\ Planning\ Q& R- PrairieRidgeAuthorizedsignatures .doc City of New Hope Resolution No. 07- Authorize signatures on the Purchase and Developm be developed or A loped into into rcel of the sale of a 7.97 acre p subdivision by Avalon Homes, Inc- Prairie Ridge New Hope is a municipal corporation organized and existing under WHEREAS, the city of 1' the laws of the state of Minnesota; and f WHEREAS, WHEREAS, WHEREAS, WHEREAS, the City Council of the city of New o ° ment of a d op ted the orderly, economic and safe develo A dge subdivision, requeste Homes, Inc., and the city of fi plat for Prairie the City Council has approved submitted by Aval n in Planning Case No. 07-01, New Hope; and the property to be subdivided /-24 escribed as: That part o f the southeast qorthwest quarter lying north of the Soo Line R &W, PIN #08- 118- the newly subdivided prope cribed as: d 2 Block 1 and Lot rairie Ridge subdivision, New Hope, , P Lots 1 an � Minnesota for the sale of city -owned WHEREAS, the City Council con du ed olnmentsreceived at the public hearing; an d property a nd consider d t he ' he finds and concludes that the sale of his eeandpi property be WHEREAS, the City Council y is in the best interest of the city subdtvs ion cil of the c ity developed into Wad be known as P rairie Ridge NOW, THEREFORE, BE IT RESOLVED, by the City Coun e o New p a and authorize J the signatures of the ale of rty -owned property to be developed by Development Agreement for Avalon Homes, Inc., into Prairie Ridge subdivision. ;ion regulations or city; and I: \RFA \PLANNING\ PLANNING\ Planning\ Q& R- PrairieRidgeAuthorizedSignatures .doc Adopted by the City Council of the city of New day of May, 2007. Attest:---__.-- --- City Clerk Hope, Hennepin County, Minnesota, this 29th Mayor I : \RFA \PLANNING \PLANNING \ Planning\ Q& R- PrairieRidgeAuthorizedSignatures .doc 0 The way home- May 21, 2007 City of New Hope Attn: Mr. Curtis Jacobsen Community Development Specialist 4401 Xylon Avenue North New Hope, MN 55428 -489 Re: Purchase and Development Agreement Dear Curtis: we have several concerns regarding the draft of the Purchase and Development Per our conversation on Friday those items along with an explanation of each: Agreement. Following p lease , owner occupied" to exhibit The City Council app e and is a non - negotiae 1 roved the final plat with a change to include bl issue for the wording The City 8.2. Our attorney must has hi recommended we remove this language ro and would er g homes in our price point is not profitable Avalon Homes and must be del e a of us ingle family forward and close on the p p rsuant to the City's only be used as an exit strategy temporarily. understand that the long -term re must be in p p If this language urchase agreement to close in an additional 24 months until request, we will ask f or an extension on the p the current real estate market rebounds. to leave these price range stated; (2) reduce the requi rement for a ttorney has recommended we also removthe R the ce ti Covenants. Avalon the e 2. Our a Y in place with a few minor modifications :( remove the requirement for 20% brick or stone rambler plans from 1,200 to 1,100 and; ( 3 ) ainst Transfer of Property• We must have the flexibility el of o p selling In the twin cities development 3. Section 15: Assignment/Prohibition Ag er and the trend is continuing sole discretion lots to other builders without the of the City of New Hopel market there are very few projects that have xclusive builder rights any o the same restrictive covenants there is no in the same direction. As long as additional builders are held t need for this language. We are Hope to understand the position and risk eeingbu 140mes is builders and developers by the Curtis, we want the City of New Hop in today's market when you are seeing just walking away attempting o into foreclosure, and j tin to bring on -line a new project tc l their models and speculative homes g dozen filing for bankrup y lett ' industry. addin the already suffocating but the support feel that we need not only the flexibility from land contracts of the City avoid that regards. Cordially, Tony C. Janu Sent via email Cc: Mitch Ammerman Brian Bourassa 855 W Broadway Ave., Ste. A, Forest Lake, MN 55025 * 651- 464 -9080 * fax 651- 982 -1326 d o U� 0 CO5 C/) do O O U dab I U O J .0 m 0 W W > z S., Ttt U O-L" 0 S W ZW- 8 E z 7 U, w 1-3 o W 0 z 0 Z Q 19 '6 0 W W > ca cn Ile % 2 . 2 In I E M ul T " A -o ' E � ' z w ZB 0 - i 5 - d o U� 0 CO5 C/) do O O 9i I g o £e L 11:3 0 I L -- i - I Li IL 3.99.tOOS do 0 O WgL _ R Z9 90Z l 3 K;B �OOH C\2 C" cr r 9r 13,*0 w u — j --I "N2 r- 90't-I uj .t QW4Z I cot COW 3 DON C I L K90 3. Z 3 99 *%.DOS r oo� W09 3. I / (DRAFT) PURCHASE AND DEVELOPMENT AGREEMENT „ and between Agreement ( "Agreement) is made by This Purchase and Development A oration ( "Buyer ") and the CITY OF NEW HOPE, AVALON HOMES, Inc . a Minnesota core eements of the respective agr 1�IINNESOTA, ( "Seller "). In consideration of the covee shall urdch south of parties as hereinafter set fo New Hop 7.97 acres (more or less) Hope commonly referred to as the property rth, Seller shall sell and Buy P the Soo Line railroad tracks between Pennsylvania and Louisiana of of vacant land located in he City of l described on Exhibit A 52 Avenue and n Avenues North identified as PID nO hel`PT party Ol an „� g y attached hereto and made a part hereof ( being Purchase Price. The purchase price for the Property is based on the Property t of the 1. e p 000.0 p er lot. Based on th Dollars ent of shall be Six Hundred Forty -six Thousand and No /10 platted into 17 individual residential lots priced at $3 � follows: an initial paym Property, the purchase pace Buyer shall pay as foll « which the Buy eller ($646,000.00) (the Purchase Price"), which sum shall be paid to The 000.00) sand Ten Thousand Dollars ($10, Earnest H Thirty - Money"), Agreement and Six Hun upon Buyer and Seller's execution on of this agree the purchase le b wire, cashier's check or cash on the "band agClosing ", as that Dollars ($636,000.00) payable Y Buyer and Seller acknowledg per lot rice term is defined in Section 4 below. The Buy 000.00 p process and that this l be adjusted upwards or downwards in accordance with t s. $ p price will J p by purchase price based on the actual r o f r s of the deed at closing. Buyer understands the p provision shall survive the Per lot times the number of lots allowed in excess of 17. Seller creased by $38, 00 P 38000.00 per lot times the number of lots will be in purchase price will be decreased by $ , led e and agree a final plat has understands the p arties acknowg allowed by the platting process short of 17. Both p Buyer further acknowledges been submitted for app roval establishing 17 lots for the Property Buy eement due to that with the exception of the termination oe cancellation 0 and agrees , Pa hall bed erred non- refundable. b by the Seller, the $10,000.00 Earnest Money pa the Date of Closing, the Seller shall del v free an clear of liens 2. Title Conveyed. On marketable title of reco , to the Buyer conveying as that term is Deed (the "Deed) exce for the "Permitted Exceptions , encumbrances, assessments restrictions, P defined below. resent 3. Represen tati ons and Warranties by Seller and Buyer. The Seller and Buy er represent and agree as follows: and has the right to sell the same, and that there are a ) The Seller owns the Property agreements or claims of any no unrecorded contracts, leases, easements or other agr the use, title, occupancy or developmenotherhright Pro o a cquire third party affecting right of refusal, option or no person, firm or entity has any g a sanitary sewer easement all or any par over the west 30 feet oft the of the Property except the following over the west 7.5 feet and a construction easement property as evidenced by Document No. 3142713. 1 Buyer in the Buyer's efforts to obtain the b) The Seller shall cooperate with the Buy its, street and utility public or governmental authorities as to e� matters including but approval of all p subdivision, conditional use p reservation, not limited to zoning, subdivision' ark area, trails, open space, tree p 1 single infrastructure, access, grading, p a minimum of 17 wa management and /or other similar r equi rem ents cluding for i n ` - storm �'�' developmen on the family residential" esidential zoned housing site improvements up individual residential lots, together with all necessary Improvements referred to collectively, the "Improvements "). The Imp Property ( against the ion of 17 single family home enats th e ag re sidentia l herein shall mean the construct roved as part of the Seller's lots in accordance with t recor re S eranrd ti pp approved mg Buyer's Post - closing Property acceptable to see Buy governmental planning process subsequent to h a closing ( lications and governor 16). Seller shall join in such or regulatory construction covenant ay be required by governme other documents as may be necessary or req rovements. Notwithstanding any bodies to develop the Property for the Imp ations under this Section language in this Agreement to the contrary, Seller reasonable exercise of the City 3(b) shall not be construed to an subd lim �'a ivision or planning case it in any ode or Minnesota Statutes ion per the New Hop of New Hope's discretion in considering e C it C submittal or applicat Y perty or the subdivision/platting and development e Covenants referred to relating to rovements thereon. The Rest construction of the Imp construction standards herein shall include at a minimum the following 0 p0 i) Minimum Market Value per house: $320,000 to $39 ( (ii) Ramblers - minimum foundation of 1,250 square feet (m) Two story - minimum finished square footage 1,800 square feet foundation size of 1,150 square feet, (iv) Modified 2 -story - minimum le - minimum finished square footage of 1,500 square feet, (v) Sp lit s �' (vi) Minimum 6/12 roof pitch rovided that 20% of (vii) Brick, stone, stucco, ceme si board, e f doorsyadt�`'mdows, shall be brick or the front elevations, exclu stone encouraged and two car permitted with 24 foot depth (viii) Three car g arages (ix) Landscaping per City of New Hope requirements ( Establishment of architectural control committee 2 0 The Parties war ranties and representations contained in this Subsection 3 shall survive the delivery of the Deed. ental authority notice from any governor d) The Seller has not 1 domain, special taxing district, or concerning any rezoning proceedings. assessment or valuation agreement that is not The Property is not subject to any f the Permitted Exceptions, as defined in Section 4 below, and the e listed as one o notice of actual or threatened special assessments or Seller has not received any reassessments of the Property f) To the best of the Seller's knowledge without inquiry there are no wells or septic systems on the Property. and equisite power and authority to enter into it; g ) Seller represents th at it has the r Seller's Closing Documents signed by Court perform this Agreement and any ud ent, order or decree of any documents will not be in violation a and suc documen or arbitr party tsa accordance and binding terms. h v ator to which Seller is a obligations of Seller, and are enforceable in terms. �° "forei " 'foreign partnership,- "foreign trust or gn g Person," p Seller is not a "forei n p " fined in Section 1445 of the Internal Revenue Code. h) estate s those terms are de a iousl disclosed to the Buyer, the Seller has not received notic kind i) Except as prev Y condemnation or proceedings of any any action, litigation, investigation, ortion of the Property. pending or threatened against Seller or any p of Seller without inquiry, no above ground or underground J) To the best knowledge tanks are located in or about the Property, Buyer to forgoing re b oney shall be returned. e grounds for breach of the forg g resentations shall representations Earnest M The Seller agrees that any k of Seller," such representation terminate this Agreement. In the event of such termination Wherever herein a representation is mad Ma or andJo Cit Man ager of Seller. is limited to the actual knowledge of th Y TIONS BY THE SELLER, THE OING REPRESENTA PURCHASING TH SUBJECT TO THE FOREG PR BUYER HEREBY ACKNO WLEDGES THAT THE BUYER I P PRO PERTY IN "AS IS" CONDITION AS TO THE USE OF TH by this Buyer's obligation to close the transaction contemplated 31 , 2007: 4. Conditions of Offer. The Buy conditions on or beforeMay Agreement is subject to the satisfaction of the following on 7 below, have reasonably a) The Buyer shall, pursuant to the terms of Sect i such determination the determined that the Property ert is marketable. In n1aking is currently, Bu er specifically agrees and acknowledges that title to the Property Y 3 roceeds with closing will be, subject to the following title and if the Buy er p matters (collectively, the "Permitted Exceptions "): 2007; et due and payable in lien of real estate taxes not y laterals and (i) any drain tiles, feeders, u rights -of -way for drainage ditches, O underground pipes, if any; all dedicated rights -of way; agreements which are all other easements, restrictions, covenants and (iv) as the Buyer's intended use of the depicted by the public records, so lO ed by such matters of record as Property is not materially imp determined by the Buyer in Buyer's reasonable di scretion. approval for a minimum of 17 resident al use permits b) Obtaining subdivision/platting c h ang es, including rezoning, variances, sp Property and all zoning including, d an other governmental permits o , consentf he r authorizations, wh subdivisions an Y Buyer's intended use are necessary or desirable for Buy without limitation, building permits for the construction of 17 single family homes o the Property. cin under terms and conditions reasonably acceptable to the C) Obtaining finan Buyer for the purchase of the Property Bu yer on or or has not been wa Agreement shall become ition of this Section 4 remains unsatisfied occurs sooner, this Agr Y other before May If any cond whichever eement 31, 2007 or the date of closing, neither party shall have any further obligation to he other under this gr null and void, r this Agreement which provide for continued exercise following the itions than rights or obligations and on of this Agreement). With respect to the above -de e ment for ribed in favor cancellation or other termma � 2007, or the date of closing, of the Buyer, the Buyer s h a ll give notice or before rMayte 31 , 2 this gr to satisfy or fulfill any of said c o nditions ono given within the sp ecified time period waived by whichever occurs sooner, but if no notice of termination is with respect to any of the conditions listed above, such condition shall d e ance wiwith theo her terms the Buyer and the Buyer shall proceed to close this transaction in acco and conditions of this Agr eement, costs to survey the property er agrees it will pay all necessary or in 5. Survey and Plat. The Buy by a duly licensed survey for development. The Buyer agrees it will have a survey Prepared inimum standard detail requirements for n of he final lat of the accordance with the current m shall be used for preparati s The Buyer agrees that the Survey platting of the Property as well. The surveys. d to the a all costs relate p g Y shall survive the Clos lattin ing and the delivery oft the Property, and agrees to p obligations of the Buyer regarding p g Deed. 6, Access Prior to Closing. and contractors shall The Buyer and its e of conducting examinations, making mployees, , agents Property for the pure ose soil borings) as the have the right to entee forminge uch tests or surveys thereon (including measurements, and p 4 access to the Property and actions thereon shall be wi bject to e Buyer desires. The Buyer s acc agreement wh approval and, if requested by the Seller, a written access agr The Seller agrees not to Buyer testing and inspection of the Property The Buyer agrees interfere with the Buy l for Buyer to have access to the PropeY employees, agents, or unreasonably withhold its approval es caused by the Buyer or its emp to y with repairs to to promptly repair or restore any damag er further agrees to c the course of making such examina the Seller and the ontractors during be performed in any reasonable manner specified b y to ees, agents, consultants and officers and the Seller's emp Y or injury asserted against indemnify and hold the Seller lien, claim, loss, liability, cost, damage s' fees, related to harmless from and against any but no limited to attorney to pees, the Seller or the Property, including contractors or e or suffered by of its agents, representatives, mp Y any entry by the Buyer, its assigns or any The re air and indemnification obligationeementa sha in this Section ination of this Agreement. as related to this Agreement. p shall survive closing or the cancellation or other term 7. Title Commitment and Policy. erls Buyer a Commitment for an ALTA Form B a Y n and a ) The Seller shall d eliver to the issued by a Land Title Comp policy of title insurance (the Commitment ") the Property, in the amount of the purchase and r issuanc e o Seller the covering title to preparation agrees to pay the costs associated with .the fort e owner's policy, if any, and the premium Commitment; the Buy er shall pay with the price for any endorsements requested by the lender's policy, if any, along the Buyer or the Buyer's lender. o review have fifteen (15) days after receipt of the exception t n ti le that is b) The Buyer shall and to object to any p and approve the title to the Property or which is otherwise discovered b he disclosed in the Commitment and Survey within such fifteen ( 15 ) day period . In the event that the Buyer does not Buyer to any such exceptions, then all such exceptions give notice to the Seller objecting shall be considered a p art of the Permitted shall be deemed approved and the Buyer timely objects to an exception to °title, ionthen the S eller shall Exceptions. If Y er s notice of e p r unable to the tenth (10) day following the Buy Buyer that the Seller is unwilling o e Seller that the remove the exception or notify the Buy days of any notice by notice to remove the to exception. Wi t in exc eption to title, the Buyer may elect by Seller it is unable the Seller to either: shall be terminate this Agreement, whereupo all hall beereleased Money m all further 0) returned to the Buyer and the parties s hereunder except oligations under this Agreement which obligation following the cancellation or other provide for continued exercise termination of this Agreement; or which eve nt the Buyer to have this Agreement remain in effect, usln (ii) elect s ly-cited exception and the r will be deemed to have approved oved the previo y of the Permitted Exceptions. same shall be considered p 5 Closing. the a ) Closing shall occur within ten (10) business days after than June 2912007�(the Agreement have been satisfied, and in no even ies agree, in writing, to an earlier "Date of Closing" or "Closing "), Mess both p or later time• ller's sole o t the Seption, occur at the New Hope City Hall, or the b) Closing shall, a office of the New Hope City attorn ey. C ) The Seller shall deliver at closing the following executed and acknowledged documents: (i) the Deed; ion of the s stating that possess affidavit(s) in industry - standard form( ) (u) delivered free of any mechanic's the Seller is not a Property is being per formed prior to closing, connection with work or entity; and addressing such other matters as the Buyer foreign Person may reasonably require; and a for the Prorations. The Seller shall, on or before the Date of Closing, pay 9 payments/ the Seller shall pay the cost of recording any costs relating to the Commitment.neAessa�y to place title in the conditioner quir cons titut in g un He th i s n instrument (other than the Deed) ending without limitation any installments of A reement, State deed tax, and all f s a i ncluding wit , p d of closing. The g as of the Date of Closing against the Property able with general real estate taxes in the ar of closing and all special assessments and interest pay in the year prior to the y o n title eneral real estate taxes payable olicy or lender policy Seller will Pay g er shall ay at closing the cost of the owner p and the fees required for prior years. The Buy p from the Closing, fees. sales tax (if any) resulting one -half of customary closing insurance (if any), Bu each will paY prorated by the Seller and the recording the Deed. The Seller and the year of closing shall be p General real estate taxes payable in the y date based upon a calendar year. Buyer as of the closing p shall be all or any part of the Property 10, Condemnation. If, p rior to the Date of Closing, the Buyer shall have the option of (a) condemned by governm Agreement, ental or other lawful authority, Agreement, in all con t e mplated by this Agreem i hall event this Ag con demnation completing the purchase P eT, o r (b) c shall be refunded and this Agreement shall be terminated with proceeds or claims thereof Sne s or obligations shall be assigned to the Buy ex cept right which event the Earn est rights Y against or obligations to the other c l os i n g r or cancellation or e following neither party having any rights un der this Agreement which provide for continue shall be entitled to any and all condemnation other termination of this Ag reement, and the proceeds. to have no tices required hereunder shall be in writing a of the b e d e he m ail f 11. Notices. All note q two 2 business days after depositing t whom directed, at been duly given and received (a) () n p ostage repaid, to the party sent by regular, registered or certified mail, on delivery, or attempted delivery if delivered by such party's address herein set forth; O p 6 or upon transmission if successfully transmitted overnight courier service or hand delivery; (c) p by facsimile. Any party shall have the right to designate any other address or facsimile number for notice purposes by written notice to the other party in the manner aforesaid. The addresses of the parties are as follows: SELLER: City of New Hope Dan Donahue, City Manager 4401 Xylon Avenue North New Hope, MN 55428 -4898 Facsimile No.: 309 -688 -9099 with copy to: Steven Sondrall, New Hope City Attorney Jensen Anderson Sondrall, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 Facsimile No.: 763 - 493 -5193 BUYER: Avalon Homes, Inc. Facsimile No.: with copy to: Facsimile No.: 12. Broker. The Buyer represents and warrants that pay es authorized by the Buyer, with incurred in connection with this transaction as a r esult of activities all such charges that have been invoiced as of the Date o 12 shall be paid at the Clo g,ad payment of brokerage co mmissions required by this S not sooner. Buyer further agrees to indemnify and hold hereunder of the subject Property. d Seller for any claims The brokerage commission resulting from Buyers purchase Buyer obligations recited in this Section 12 shall survive the Closing or the cancellation or other termination of this Agreement. the right to 13. Remedies. If the Buyer defaults under this Agreement, as provided by law e If the Buyer terminate this Agreement by giving written notice t Buyer fails to cure such default as provided by law, this Agreement will terminate, and upon such or termination the Seller will retain the Earnest Money under this shall have any which provgd for obligations against the other except rights or obligations continued exercise following the cancellation or other only remedy of this be to meet. terminate if the Seller defaults under this Agreement, the Buyers y Y Agreement and recover the Earnest Money paid to the Seller. Buyer shall not have any right to the remedy of specific performance 7 Easements. The Buyer hereby represents and warrants that 14. Future Access and Utility o f New Hope, provide the City with c as and utility the Buyer will, if requested by the City connection with future development o th the Buyer's f the Property further represents and easements in c re ulations and past practices. The Buy The Buyer by New Hope's City Code, g provided at no cost to the City ofthe Deed• warrants that any such easements Section 14 shall survive delivery shall be p d warranties contained in this Sec assign its representations an The Buyer may Against Transfer of Property. which consent 15. Assignment /Prohibition Ag rior written consent of the Seller, not sell or rights and obligations hereunder only Seller in p sole discretion. Further, Buy other person may be granted or withheld by lated by this agreement to any convey title of any of the residential lots contemp improvement thereon without f h the written Will le famy ome imp parties hereto that Buy prior to the construction of the sing t of the Seller in its sole discretion. I i le i of be the contractor for the construction mes he Property. consen of al single • le. The Buyer agrees and covenants that the Construction /Revesting of Tit 17 single family homes (the 16. Post - Closing gr h 3(b and ts referred too dance with the plans, h Buyer will construct or cause to be o ved restrictive covenan constructed on the property c Y pursuant to the approved Improvements) p rovements, in ac of New Hope as Part of roved by the City roved by all necessary street and utility i coinc de with those app .The plat shall be app specifications and materials b above after the closing the fanning case approval process cited in Subsection 3() p ore May and other improvements req uired of 31, 2007 and immediately recorded publicorded with the , imp county All 17 the City on orb letey October 31, 2007. by the Buyer. All street and infrastructure ocess shall be con b Tanning p the b the City's subdivision and p trusted by December 31, 2010, This i o h m t t he Seller s will at Y le f single family homes shall be cons comp for the home delivery of the Deed and promptly after construction of each sing . Promp Y Buyer with a certificate of comp Buyer provide the Buy and substance reasonably the request of the Buy p rovided in the Deed and in Which the home was c form residential lot upon onsta cdted shall be sop .anon of the agreements acceptable to the Buyer. Said c ertificate shall be ( rovements and rs and assigns) to construct the Imp lot and the and covenants of the certi itself) a conclusive determination of satisfaction an te the cent Buyer and its successors letion thereof as it relates to each residential ovide a certificate as satisfaction of the date(s) for comp ritten req uest by 'on of the home thereon. If the Seller within thirty (30) days after w shall refuse or fail ° p detail the constructs required by this Section 16 e hen h the Seller mu a written statement outlining in reasonably adequate rovements er has failed to complete the Imp the Buyer, provide the Buy Opinion that the Buy opinion reasons that the Seller is of the n in this Agreement, or the reason SelleS under s this t Sect on 16 in the opinion of the Seller, in accordance with the prove re uired of the that the Buyer is otherwise in default. A writing q acts that will be necessary, m ust additionally outline the measures or to obta n a cer tificate of comp each residential in o default or perform order for the Buyer to take or p that in the event of an un cured d f ffor t with respect to December 31, lot. The Buyer agrees and acknowledges rovements on the residential lots by ons to construct the Imp ibit B attacdheri on which the i o the terms outlined in Exh al lots upon and made a par' the Buyer's obligati 2010 the Seller may, pursuant t of the res uentl rights and interests in and to any improve ments or rights subseq Y hereof, declare that all rig the imp this Agreement) shall required improvements have nosbn en of the transaction contemplated by added to the Property after cl g 0 revert to the Seller. No reversion shall take place until notice is sent after the default and the default remains uncured for 30 days or more. 17. City Planning Process Minimum Requirements. ocess for the development of the t 17 following requirements will be part of the City's planning p single family residential development of the property: City Attorney) a ) Buyer shall enter into a development agreem p amo ( t he determined by and post a financial guarantee acceptable to eelle the City Engineer and Building Official) to ensure construction of the development according to approved plans, b) Buyer shall comply with all recomme Cre t ek n Wat rshed Commi s on, Buyers of the City Engineer plans must be approved by the Shingle c) Buyer's construction plans shall be approved by the City Building Official, d) e) f) g) Buyer must comply with all plat recommendations of the City Attorney, Buyer shall pay to the City in addition to e connection po the City of Crystalrice all amounts w ould have been paid to build a sanitary sew system and said fees shall be applied to the lift station construction costs, Buyer shall pay to the City in addition to the purchase price $25,500.00 as a park dedication fee, Buyer shall comply with all recommendations of the City Planner as follows: Demarcation posts shall be installed at the edge of the rain garden at Lots 14 and 15, Block 2 with signage to discourage trespass into the rain garden (i) area, The trail; between Lots 1 and 2, Block 1 20 feed The PUD hall easement. The width of the trail easem ent hall be require a side yard setback of 0t t the homes being ng of te trail buhlt on these lots The trail shall be constructed prior Installation of street lights shall be a development expense of Buyer. Final street lighting plans shall be subject to City approval. (iv) Buyer shall provide one 2 ' /2 inch caliper shade tree per lot located in the front yards, (v) The fence on the south side of the plat shall be conn road tracks. park fence in Crystal to discourage pedestrians crossing th the State o f Minnesota. ig, Miscellaneous. This Agreement shall be governed rn� ridinhee executed by authorized No amendment of this Agreement shall be valid g unless W sand captions of this Agreement Buyer, The heading retation or representatives of both the Seller and the Buy r that each has are for the conv ence of the parties only and shall not a� l wledge ag ee that em and 1 acknowledge enforcement of this Agreement. The Seller and the Buyer and accordingly i in favor in the drafting of this Agreement pportunity top with each copy of the 's Agreement as a whole and each of is ed m counterp had omterp and agree that thi This Agreement may be sign ether which sha of or against either party art at the time of signing and tog Agreement binding upon the signing party constitute a single document. to of time is herein provided for either Party Whenever a p eriod delays due to 19. Uncontrollable Delays• that party shall not be liable or responsible enc an a c ts of a public do or perform any act or thing, natio acts of God, shortag e nal emerg y, whether s of labor or materials, other cause or causes, strikes, riots, laws or regulations, or any enemy, governmental restrictions, and its reasonable control and the ti e to do or m similar or dissimilar to thos all be extended ded for the period of delay . perform such act or thing (The Remainder of this Page is intentionally Left Blank; Signature Page(s) Follow] 10 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the latest date indicated below ( "Effective Date"). BUYER: SELLER: CITY OF NEW HOPE Avalon Homes, Inc. Bv: Dated: Martin E. Opem Sr. Its: Mayor 2007. By: ________ -- Its: 2007. Un Dated: Daniel J. Donahue Its: City Manager 2007. Dated: 11 EXHIBIT A Legal Descripti That part of the Southeast '/4 of the Northwest f the Soo 1/40f Line Section right of way, Township 118, Range 21, lying North to the United Stay thereof and situate in States Government Surve Hennepin County According Minnesota. (abstract property) 12 EXHIBIT B rantee shall not transfer title to this property without the consent of the Grantor. 1 G le family 1, 2010 Grantee shall complete the construction of 17 sing 2. By December 3 with all necessary street and utility infrastructure Improvements homes on the property along ts to support said homes (collectively the Improvement i to The p a pproved site plans and all building, must be consistent with New Horequirements- e p platting /subdivision and zoning the Grantor may cancel 3. If Grantee fails to satisfy any of the conditions contained herein, as replatted and not released from this the sale and title to any of the lots in the property re Tatted nary covenant and the title to any unreleased lots shall rev et or any the Grantor. y reversio ry p which shall run with the land and is binding upon the condition herein shall constitute a restrictive covenant on the property residential lot of the property Grantee, its heirs, successors and assigns. p \AttorneyiSAS \l Client Files\2 City of New Flope\99 "11315 (Residential Developrnentypurchase Agreement D2- redline.doc 13 COUNCIL R o -� 713 Originating Department Community Development Approved for Agenda June 4, 2007 Agenda Section Work session Item No. By: Kirk McDonald, Director CD F£ 11.1 Curtis Jacobsen, CD S ecialist Bye' c hanges in the Purchase and Development Agreement with Avalon Homes, Discussion regarding language g Inc. as added Requested Action cil durin the May 29 Council meeting this its Purchase tandeDevelopment Per direction of the City Coun g for further discussion and clarification of requested modifications to the Agreement by Avalon Homes. Policy /Past Practice cil to direct items to the work session for further discussion and It is the past practice of the City Coun clarification. Background the Council approved the language in the Purchase and Development ity Council meeting Homes being absent 7.97 acre arcel of city -owned land to Avalon Homes Avalon a minor change an At the May 14 C Agreement for the sale of the p n on the additional requirements to them the to xt day. an additional requirement regarding the final plat. Due to representatives o from that meeting, staff forwarded information Whereupon, Avalon Homes had their attorney review the documentand thy e eir condcerns are: addressing new concerns and modifications they would like in the agr The C y „ owner occupied" to City Council approved the final plat with a change emove thistlanguage ag d is a non - negotiable exhibit B.2. Our attorney has highly recommended we pro The mes and must be deleted for us to move forward ard as ds to issue for A Ho single our price po i n t is not City must understand that the long-term exit strate temporarily. If this language must be in place rm rental of am to close in an pursuant to the City rent real estate mar profitable and would only be used a 's request, we will ask for an extension rebounds." purchase agreement ad 24 months until the cur Second by Motion by June 4, 2007 Page 2 Request for Action we also remove the Restrictive Covenants• Avalon s stated; (2) r r reduce the « "Our attorney has recommended 1 remove the price rang these in place with a few minor m° 2�0 to 1,100(and; (3) remove the requirement for 20% brick or requirement for rambler plans fro stone." We must have the flexibility o cities • sole discretion of the City of New Hope. In the er and the "Section 15: Assignment/ t Against Transfer of Proper is an g selling lots to other builders without builders are held to the same development market there are very few projects that ha as exclusive builder rig trend is continuing m tees no need for this l �� restrictive covenants they briefly discussed at the meeting on May 29 a m re thoro o ee d iscu s sion Although each of these items was br ems from the y items that the City Council may wish to address a be s ta tion d a necessary to reach a mutual understandingri A i nc l us ion /removal ° sewer lift Y Purchase and Development Agreement. o final Y in re whether an extension of the project ti solving the developers other the developer at th e work sessi on include finalization of cost shaing elated to sanitary sew meline would be beneficial/helpful concerns. to Schedule a Planning Commission member for attendance at the work session. Staff is attempting and Next Steps understanding regarding modification of f h Purcha at the Based on the City Council coming to an roval o y ment A reement, staff will modify the document for presentation an app Develop g City Council meeting of June 11. « Attachment(s) Avalon Letter 5/22/07 Purchase and Development Agreement Bonestroo Memo (lift station costs) The way home. May 21, 2007 City of New Hope Attn: Mr. Curtis Jacobsen Community Development Sp ecialist 4401 Xylon Avenue North New Hope, MN 55428 -489 Re: Purchase and Development Agreement Dear Curtis: ment we have several concerns regarding the draft of the Purchase and Develop Per our conversation g Friday lease find those items along with an explanation of each: Agreement. Following p e to include the wording "over occupied" to exhibit 1, The City Council approved the final plat with a Chang for issue The City must has hi recommended we remove this l g property. and is a non- negotiable B Our attorney g le family homes in our price point is not profitable and wo Avalon Homes and must be deleted of sing move forward an d close on the t pursuant to the City's understand that the long -term ren e must be in p p only be used as an exit strategy temporarily. If this languag n ion on the purchase agreement nths until to close in an additional 24 mo request, we will ask for a extension the current real estate market rebounds. to leave these uir e the rice range stated; (2) reduce the req e the VRestrictive Covenants. Avalon is willing ement for 2. Our a ttorney has recommended we also remove 1 remove 0 o brick or stone in place with a few minor modifications: ( 3 remove the requirement for 2o% Tans from ,200 to 1,100 and; ( ) rambler p 1 W e must have the flexibility of selling nment/Prohibition Against Transfer of Property. In the twin cities development 3. Section 15: Assig New and the trend is continuing lots to other builders without the sole discretion u lusive builder City r er rights any long er he same restrictive covenants there is no market there are very few projects that have exc in the same direction. As long as additional builders are held to need for this language. We are e want the City of New Hope to understand the position and risk Avalo bu Homes is lders and developers by the Curtis, w you are seeing ust walking away attempti new project in today's market when y o into foreclosure, and j ng to bring on-line aletting their models and speculative dustromWe feel that we need not only the flexibility dozen filing for bankrup Y the already suffocating Y' from land c ontracts support of the City in that adding gards . but the Cordially, Tony C. Janu Sent via email Cc: Mitch Ammerman Brian Bourassa a Ave., Ste. A, Forest Lake, MN 55025 * 651 - 464 -9080 *fax 651 - 982 - 1326 855 W Broadway (DRAFT) PURCHASE AND DEVELOPMENT AGREEMENT Agreement ("Agreement") is made by and between ota corporation ( "BuYeT ") and the CITY OF fNEW HOPE, This Purchase In d Development ota c AVALON HOMES, In consideration of the covenants and agreem more or less) MINNESOTA, ( "Seller ")• B shall purchase as 7. t e acres ( parties as hereinafter set forth, Seller shall sell and om only referred to as the Prop south of of New Hop Pennsy and L of vacant land lo ouisiana cated in the City all de na of the Soo Line r ailroad 24 0 1 and leg Pe sy scribed on Exhibit A 52 Avenue and north Avenues North identified as PID no (the " attached hereto and made a part hereof (the "Property )• n the Propert being rice for the Property is based o lat of the 1, Purchase Price. The purchase p er lot. Based on the p priced $38 Thousand ced at ,000.00 p s be Six Hundred Forty-six and tial D oll a rs p en of platted into 17 individual residential lots p as f : an initial payment Property, the purchase price rice" Buyer shall pay « which the Buy aid to the Seller ($646,000.00) (the Purchase Price"), which sum shall be paid Thousand the Earnest Money ), Ten Thousand Dollars ($s 0 000 0) of this Agreement and Six Hundred Thirty - upon B and 0 cashier's check or cash on the "D and agree the purchase p a able y wire, Dollars ($636,000.00) p b Y Buyer and Seller acknowledge per lot price term is defined p fined in Section 4 below. The Buy fatting process and that this dusted upwards or downwards in accordance with this $38� rice price will be a) ermitted by urchase p Bu understands the p based on the actual num the delivery of the deed at closing. l ots allowed in excess of 17. Seller provision s urvive shall sur 38,000.0 Per times the number of will be increased by $ be decreased by $38,000.00 per lot times the number of lots urchase price will e and agree a final plat has understands the p process short of 17. Both parties ackno acknowledges wledg the platting p Buyer further a allowed by roval establishing 17 lots for the Property• reement due to been submitted for app and agrees that, w ith the exception of the termination or can cellat i on hall be deemed non - refundable. breach by the Seller, the $10,000.00 Earnest Money Payment r shall deliver a Limited Warranty Date of Closing, the Selle 2. Title Convey ed. On the conveying marketable title of recordce tions as that ter l m is Deed (the "Deed ") to the Buyer t for the "Permitted Ex p encumbrances, assessments restrictions, except defined below. B uye The Seller and Buyer represent 3 Representations and Warranties by Seller and Buy and agree as follows: s the Property and has the right to sell theements ordclaims of any a) The Seller own easements or other gr and no unrecorded contract, lea title, occupancy or development of the Property, acqu . ny third party affecting th right of refusal, option or other right to n o person, firm or entity has a g a sanitary sewer easement Part of the Property except the following: all or any p t and a construction easement over the west 30 feet of the over the west 7.5 fee property as evidenced by Document No. 3142713. 1 ate with the Buyer in the Buyer's efforts to obtain the b) The Seller shall cooper all ublic con or governmental authorities as to e alts t street including uility approval of p reservation, not limited to zoning, subdivision, conditional use p tree p infrastructure, access, grading, park area, trails, open space, management and /or other similar requirements for minimum of single 7 stom wate r development including a on the family residential" zoned housing p rovements up individual residential lots, together with all necessary site imp ements referred to collectively, the "Improvements "). The Imp Property ( against the herein shall mean the construction of 17 single family h ° c ovenants eag sidentia lots in accordance with recorded restrictive d approved part of the Seller's Property acceptable to the see Buyer's Post - closing governmental planning process subsequent to closing ( lications and a h 16). Seller shall join in such app construction covenant /parba e essay Y or required by governmental or regulatory other documents as may for the Improvements. Notwithstanding any bodies to develop the Property Seller's obligations under this Section language in this Agreement to the contrary, the reasonabl any exercise of the case 3(b) shall not be construed to limit in any way subdivision or planning of New Hope's discretion in considering e Cit Code or Minnesota Statutes submittal or application per the New Hop Y to the subdivision/platting and developme development C ovenanProperty to relating improvements thereon. The Res construction of the Imp construction standards: herein shall include at a minimum the following er house: $320,000 to $390,000 O Minimum Market Value p— minimum foundation of 1,250 square feet Ramblers iii Two story — minimum finished square footage 1,800 square feet ( ) (,v) Modified 2 -story — minimum foundation size of 1,150 square feet, S style — minimum finished square footage of 1,500 square feet, (v) p (vi) Minimum 6/12 roof pitch ent board, vinyl exteriors, provided s hall e brick /o of (vii) Brick, stone, stucco, cem the front elevations, exclusive of doors and window , stone garages encouraged and two car permitted with 24 foot depth (viii) Thre e car g (ix) Landscaping per City of New Hope requirements ( Establishment of architectural control committee 2 0 The Parties warranties and representations contained in this Subsection 3 shall survive the delivery of the Deed. overnmental authority notice from any g district, or d) The Seller has not received any condemnation, special taxing concerning any eminent domain, rezoning proceedings. of subject to any assessment or valuation agreement that is not e) The Propert y is n subject defined in Section 4 below, and the notice of actual or threatened special assessments or listed as one of the Permitted Exceptions, Seller has not received any reassessments of the Property. }) To the best of the Seller, knowledge without inquiry there are no wells or septic systems on the Property. t it has the requisite power and authority to enter info s g ) Seller represents tha signed by Seller's Closing Documents sg Court perform this Agreement and any j udgment, order or decree of any documents will not be in violation art Y an and su ch documents are a n d be valid or arbitrator to which Seller is a p and binding obligations of Seller, and are enforceable in a terms. �� "forei " "forei artners n " "foreign trust or gn h) Seller is not a "foreign person, g p as those terms are defined in Section 1445 of the Internal Revenue Code estate disclosed to the Buyer, the Seller has not receiv o f any kind Of i) Except as previously condemnation or proceeding any action, litigation, investigation, ending or threatened against Seller or any portion of the Property. pending or underground j) To the best knowledge of Seller without inquiry, no above g tanks are located in or about the Property. l be grounds for Buyer to ed. re resentations shall the Earnest Money shall be return The Seller agrees that and br each for n the event of sch termination, of Seller Wherever herein a representation such representation terminate this Agreement. Mayor and /or City ManageT of Seller. e i tythe best knowl is limited to the actual knowled B �, T HE SE SUBJECT TO THE FOR LLER, THE R IS PURCHASING THE FOR EGOING REPRESENTATION BUYER HEREBY ACKNOWLEDG THAT THE BUYE PROPERTY IN "AS IS" CONDITION AS TO THE USE OF THE PROPERTY. ed b this offer. The Buyer's obligation to close the tr 's o rbeforeMay 31, 2 007: 4. Conditions of O con ditions Agreement is subject to the satisfaction of the following Section 7 below, have reasonably a ) The Buyer shall, pursuant to the terms of In making such determination the determined that the Property is marketable. is currently, u er specifically agrees and acknowledges that title to the Property By 3 roceeds with closing will be, subject to the following title and if the Buy er p matters (collectively, the "Permitted Exceptions "): i any lien of real estate taxes not yet due and payable in 2007; (} drain tiles, feeders, laterals and (ii) rights -of- -way for drainage ditches, underground pipes, if any; all dedicated rights -of way; ( ) restrictions, cants and ag reements which are (iv) all other easements, oven as the Buyer's intended use of the depicted by the public records, so a o ed by such matters of record as Property is not materially imp determined by the Buyer in Buyer's reasonable discretion. division/platting approval for a minimum of 17 residential i use Permits, b) Obtaining sub changes, in rezoning, Property and all zoning variances, sp and an other governmental permits, consents authorizations, , subdivisions a cluding, desirable for Buy of 17 single family homes o Y Buyer's intended use are necessary or desi wit limitation, building permits for the construction the Pro acce table to the Obtaining financing under terms and conditions reasonably p C) purchase of the Property. Buyer for the p the Buyer on or Agreement shall become dition of this Section 4 remains unsatisfied occurs sooner, this Y t other or the date of c ligation to or has not been wal If any con whichev eemen before May 31, 2007 losing, void, neither parry shall have any further obligation the other under this gr null and May under this Agreement whi With respect to the above - described for failure ch provide for continued exercise following the than rights or obligations and eement). conditions give notice of its desire to terminate this Agreement cancellation or other termination of this Agr 2007, or the date of closing, in favor of the Buyer, the Buyer shall g period to satisfy or fulfill any of said conditions on or before May 31, the specified time w aived by whichever occurs sooner, but if no notice of termination is given d above, suc the Buyer and the Buyer shall proceed to close this transaction h con with respect to any of the con ditions listed dition s hall be w ith th the other terms m accordance and conditions of this Agreement. the property Buyer agrees it will pay all necessary costs to survey or in y 5, Survey and Plat. The Buy g re ared by a duly licensed survey for development. The Buyer agrees it will have a survey P p minimum standard detail requirements for of the Tina plat of the accordance with the current m shall be used for preparation The Buyer agrees that the Survey platting of the Property as well. The surveys' a al] costs related to the p Y e the Closing lattin shall surviv and the delivery Property, and agrees to p oft e obligations of the Buyer regarding p g Deed. The agents, and contractors shall Prior to Closing. Buyer and its employees, u ose of conducting examinations, making 6. Access Pro for the p rp soil borings) as the have the right to enter upon the Property s thereon (including measurements, and performing such tests or survey 4 he Seller ' access to the Property and actions thereon shall b will not materially Buyer desires. The Buyer s a eement wh the Seller, a written access agr The Seller agrees not to approval and, if requested by The Buyer agrees testing and inspection of the Property. interfere with the Buyer's royal for Buyer to have access to the Property to ees, agents, or unreasonably withhold its app caused by the Buyer or its employees to promptly repair or restore any damag es of making such exami on, measurements further agrees to tests, with repai to contractors during the course and be performed in any reasonable mariner specified by t to ees, agents, consultants and officers) injury asserted against indemnify and hold the Seller (and the Sloss, l i a bilit y, cost, damag e or s ' fees, related to di bu harmless from and against any lien, claim, loss, 10 ees, or s uffered by the Seller or the Property, inclu g Tepresentata es, contactors or emp ction 6 any entry by the Buyer, its assigns or any of its age as related to this Agr eement. The repair and indemnification obligatio reement� in this e shall su rvive closing or the cancellation or other termination o 7, Title Commitment and Policy. deliver to the Buyer a Commitment for an a � Seer shall b Title Co p ny policy of title insurance ( and a) The Selle issued a Y Land and issuance of the o the Property, in the amount of the Pu onaa price. The Seller covering title t re arati agrees to pay the costs associated with or the owner's policy, if any, and Commitment; the Buyer shall pay the p ' Policy, if any, along with the price for any endorsements requested y the tender's Po y' the Buyer or the Buy er's lender. to review have fifteen (15) days after receipt of the - m to s b) The Buyer shall and to object to any exception and approve the title to the Property or which is otherwise discovered by the ch fifteen ( 15 ) disclosed in the Commitment and Survey day period that the Buyer does not within su Buye r. In the event such exceptions, then all such exceptions give notice to the Seller objecting to any art of the Permitted shall be deemed approved and shall be considered a p , hen on or f the Buyer timely objects to an exception ex e tiont the Selleb shall efore Exceptions. 1 the Buyers notice of p or unable shall the tenth (10) day following er that the Seller is unwilling remove the exception or notify the B da s of any notice by the Seller that the remove the exception. Within five ( may elect by notice to Y Seller it is una ble to remove an exception to title, the Buyer the Seller to either: shall be o f the terminate this Agreement, whereupon shall be released from all further 0) returned to the Buyer and the partie eement which following the cancellation or other obligations hereunder except obligations under this gr provide for continued t ermination of this Agreement, or elect to have this Agreement remain in effect, usln s ly-cited exception and the (ii) will i y will be deemed to have approved the prev same shall be considered part of the Permitted Exceptions. 5 Closing. 10 business days after all the conditions of the a ) Closing shall occur within ten ( ) ree in writing, to an earlier Agreement have been satisfied, and in no event s titer than June 29, 2007 (the b satis unless both parties g "Date of Closing" or "Closing , or later time. hall at the Seller's sole option, occur at the New Hope City Hall, or the b) Closings , office of the New Hope City attorney the following C) The Seller shall deliver at executed and acknowledged documents: (i) the Deed; stating that possession of the (ii) affidavit(s) in industry- standard form(s) ert is being delivered free of any mechancs the Seller is not a connection with work p i ens Prop Y per formed prior to clo g, foreign person or entity; and addressing such other matters as the Buyer may reasonably require; and a for the ments /Prorations. The Seller shall, on or before all Pay the costs relating to the Commitment in the condition required under this cost of recording any 9. PaY g the Sell . At c l os ing , hare the Deed) necessary to place title instrument (other t pen ding r constituting a lien g Agreement, State deed tax, and all special assessments lwithoutlimitation any installments of against the Property as of the Date of Closing, including and all interest ayable with general real estate taxes in the year of closing. The special assessments and P year prior to the year of closing general estate tax real payable in they P Y p of title Seller will pay g at closing the cost of the owner polic or lender prior years. The Buyer shall pay and the fees re quired for sales tax (if any) resulting from the Cone -half of customary closing fees. insurance (if any), Buyer ea recording the Deed. The ch will shall be pay p the Seller and the S of closing and the Buy a able in the year prorated by General real estate taxes date based upon a calendar year. Buyer as of the closing art of the Property shall be prior to the ate of Closing, all or any p 10. Condemnation. If, p D Buyer shall have the option of (a) condemned by governmental or other lawful authority, n which event all condemnation urchase contemplated by this Agreement, Aeement, in completing the p Buyer, or (b) canceling this gr proceeds or claims thereof shall be assigned to the BuY eem to ent shall be terminated with which event the Earnest Money shall obl gations this te other except right or ob 1 g ti or u neither party having any rights again e xercise following rider this Agreement which provide for contin le hall be retitled to any l or and all condemnation other termination of this Ag reement, and the Sell proceeds. and shall be deemed to have 11. Notices. All notices required hereunder b iness days aft of the same in the mail if r depositing w h o m directed, at been duly given and received (a) tw o O postage prep aid, to the party to sent by regular, registered or certified mail, on t g or attempted delivery if delivered by such party's address herein set forth; () P hand delivery; (c) or upon transmission if c or facsimile number overnight courier service shall have the right to designate any or other address by facsimile. Any party sha b written notice to the other party in the manner aforesaid. The addresses of for notice purposes y the parties are as follows: SELLER: City of New Hope Dan Donahue, City Manager 4401 Xylon Avenue North New Hope, MN 55428 -489 Facsimile No.: 763- 531 - 5136 Steven Sondrall, New Hope City Attorney with copy to: Jensen Anderson Sondrall, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 Facsimile No.: 763- 493 -5193 BUYER: Avalon Homes, Inc. Facsimile No.' with copy to: Facsimile No.: all brokerage charges, if any, er re resents and warrants that it will pay the Buyer, with 12. Broker. The Buy p aid at Closing. An y in connection with this transaction as a result of Closing to be pd Y d incurred aid at the Closing, an all such charges that have been invoiced as of the Section 12 shall be p D payment of brokerage commission required by agrees to indemnify and hold harmless the Seller es bje t Property f ss The not sooner. Buyer further from Buyers purchase hereunder o brokerage commission resulting or the cancellation or other Buyer obligations recited in this Section 12 shall survive the Closing Y termination of this Ag reement. B defaults under this Agreement, the Seller shall have the right to written notice to the Buyer as provided by law. If the Buyer 13. Remedies. If the Y wing on such terminate this Agreement by g law, this Agreement will terminate, and up provided by a rt shall have any rights or fails to cure such default as ex cept rig Agreement which provide for termination the Seller will retain the Earnest this Agr or obligations under Agreement. If the obligations against the other e co ntinued exercise following the cancellation or other termination ° s hall be o terminate the conti Agreement, the Buyer's only remedy Seller defaults under ht to r the Earnest Money paid to the Seller. Buyer shall not have any rig Agreement and recover the remedy of specific performance 7 sements. The Buyer hereby represents and warrants that 14. Future Access and Utility Ea the City of New Hope, provide the City w provided and as ith acceslfor th Buer will, if requested by en'e development of the Prop ert further represents and easements in connection with the Buy s future past p The Buy The Buyer by New Hope's City Code, regulations and p pided at no cost to the City, warrants that any such easements shall be p ro war ranties contained in this Section 14 shall survive delivery of the Deed. representations and wart Th Buyer may assign its 15. Assi ainst Transfer of Property. gnment /Prohibition A-g r Buyer may not sell or hereunder only with the prior written consent S yler, which consent rights and obligations he agreement to any other person the Seller in its sole discretion. may be granted or withheld by con t em plated by t the single family home improvement thereon without the written convey title of any of the residential lots contemp f the his agr parties hereto that Buy Will prior to the constru consent of the Seller in its sod dt and covenant on of a ll single family homes on the Property. of Title. The Buyer agrees s that the be the contractor for the cons 16. Post - Closing Co 17 single family homes (the ved restrictive covenants referred to in Paragraph 3(b) and Buyer will construct or cause to be constructed on the Property dance with the plans, Improvements) pursuant to the app improvements, in accordance ar t of all necessary street and utility infrastructure for the approved by the City of New Hope as p specifications and materials to coincide with those approved The plat shall be approved by the planning case approval process cited in Subsection 3 (b b ) improvement required 2007 and immediately recorded with the c mntY after the closing the City on or before May 31, October 31, 2007• All 17 e Buyer. A street and infrastructure utilits shall be co mpleted by 1 p survive the by th All Y lanning proces by the City's subdivision and p December 31, 2010. This co h me shall will at single family homes shall be constructed by letion for the home and delivery of the Deed. Promptly after construction a cer tificate l of f comp reasonably th r e quest of the Buyer er rovide the Buyer wl and substance rea the re P provided in the Deed and in residential lot upon which the home was constructed be sop d in acceptable to the Buyer. Said certificate shall be ( rovements and the certificate itself) a conclusive determination of satisfaction o d ter construct the Imp he agreements er and its successors and assigns) nd the and covenants of the Buy ( co mpletion thereof as it relates to each ro ade certificate as date(s) satisfaction of the es) for p 3 0 days after written request by construction of the home thereon. If the Seller within thirty ( ) t provide to detail the required by this Section 16 then the Seller m in r easonably a equa rovements provide the Buyer with a written statement opals failed d to complete the Imp the Buyer, p in ion the is of the opinion Agreement, or the reasons ellesundersthi t Sect on 16 reasons that the Seller iion that the uY in accordance with the provisions in this Agr re aired of the that the Buyer is otherwise in default. A writing q in the opinion of the Seller, ln for each residential m must additionally outline the mea orSde r to o btain in a certificate of completion with respect to for the Buyer to take or perform lot. The Buyer agrees and acknowledge Imarovements on the r s dential lots by e Dcade a part the Buyer's o bligations to construct the p of the residential lots upon which the 2010 the Seller may, pursuant to the terms outlined in Exhibit B attached hereto entl hereof, declare that all rights and interests in and to h e improvements or rights subsequ Y in of the transaction contemplated by this Agreement) shall required Improvements have n ot been made (including added to the Property after clos g revert to the Seller. No reversion shall take place until notice is sent after the default and the s or more. default remains uncured for 30 day r of the 17 acknowledges and agrees the Process Minimum Requirements. Buy e 17. City Planning part of the City's planning process for the development following requirements will be pa single family residential development of the property: ent (prepared by the City Attorney) a Buyer shall enter into a development agreement uarantee ac able to Seller (amount con s t ru ction of by cept he and post a financial g official) to ensure the City Engineer and Building development according to approved Plans, comp with all recoendations of the City Engineer and Buyers b ) Buyer shall p Y mm the Shingle Creek Watershed Commission, plans must be approved by c Buyer's construction plans shall be approved by the City Building official, ) 1 with all lat recommendations of the City Attorney, d) Buyer must comply p e ) Buyer shall pay to the City in addition to the purchase price all amounts Crystal' build a sanitary sewe been aid to r station c onne cti on on costs Cry would have p lied to the lift station system and said fees shall be app rice 525,500.00 as a park 1) Buyer shall pay to the City in addition to the purchase p dedication fee, ly with all recommendations of the City Planner as follows: g ) Buyer shall Comp e of the ran g p shall be installed at the edge rain at Lots 0) 14 p e to discourage trespass into the rain g arden 14 and 15, Block 2 with signag area, laced in a trail (ii) The trail; between Lots 1 and 2, Block 1 shall be placed be 20 feet. The PUD casement. The width of the trail easement t e, edge of the trail easement. require a side yard setback of 10/5 from built on these lots, The trail shall be constructed prior to the homes being er. Final street lighting p lans sh Installation of street lights shall be a dev t opm roval ex pense of Buy (iii) l be subject to Ci y PP � 1 rovide one 2 1 /2 inch caliper shade tree per lot located in the (iv) Buyer steal p front yards, ark fence lat shall be connected to the p (v) The fence on the Sou th side of th crossing the railroad tracks. in Crystal to discourag ep Agreement shall be governed by the laws of the State of Minnesota. 18, Miscellaneous. This Ag unless executed by authorized No amendment of this Agreement shall be valid or binding 0 caption' of this Agreement Seller and th Buyer. The headings and cap interpretation or representatives of both the e Buy cowledge and agree that each has ' ce of the parties only and shall not be looked to in the mterp are for the convenience acknowledge enforcement of this Agreement. The Seller and the Buyer and accordingly in the drafting of this Agreement toparticipate ar t with each copy of the s a whole and each of is clauses are not to be interpreted in favor had opportunity this Agreement a be si ed in and agree that counterpart, This Agreement may and together which shall of or against either Party- the signing party at the time of signing Agreement binding o upon constitute a sing pro vided for either party to Whenever a period of time is herein p delays due to 19. Uncontrollable Delays• that par shall not be liable or responsibleenc any is of a public do or perform any act or thing, of labor or materials, nation m c ause or causes, whether strikes, riots, acts of God, shortages or any other ental restrictions, or regulations, enemy, governor itions, law umerated, beyond its reasonable control and the time to 0 or similar or dissimilar to those all be extended for the period of delay. perform such act or thing der of this Page is intentionally Left Blank; Signature [The Remain P Follow] 10 IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the latest date indicated below ( "Effective Date"). SELLER: BUYER: CITY OF NEW HOPE Avalon Homes, Inc. BY: Dated: Martin E. Opem Sr. Its: Mayor 2007. By: Its: 2007. Dated: Daniel J. Donahue Its: City Manager 2007. Dated: 11 EXHIBIT A Legal Descriptio That part of the Southeast ' / N North right of way, Township 118, Range 21, lying orth of the Soo According to the United States Government Survey thereof and situate in Hennepin County Minnesota. (abstract property) 12 EXHIBIT B 1, Grantee shall not transfer title to this property without the consent of the Grantor. December 31, 2010 Grantee shall complete the te construction street d utility infras s tructure 2. By improvements oc cupied homes oc on the property along with all n oc improvement s to support said (collectively the Improvement d homes (colls). The roved site plans and all building, must be consistent with New Hope app platting /subdivision and zoning requirements. Grantee fails to satisfy any of the conditions containe and n ot released from this l 3. If Gran of the lots in the property as rep e to any Tatted reversionary covenant and the title to any unreleased lots shall revert t or an rep or. y the sale and titl condition herein shall constitute a r s n with the land ands binding upon the residential lot of the property whi Grantee, its heirs, successors and assigns. p,�Attomey.SAS \l Client Files \2 City of New Hope',95-11315 (Residential DevelopmentR\ ,chase Agreement D2- redline.doc 13 Bonestroo Rosene Anderlik & Associates Engineers & Architects No. 1 2 3 4 5 6 7 8 Units Qty 9 10 11 12 13 14 15 16 17 LIFT STATION COST ESTIMATE PRAIRIE RIDGE 000034 - 07 -0 NEW HOPE, MINNESOTA FEBRUARY 2007 Item LIFT STATION OPTION LIFT STATION 6" HDPE FORCEMAIN CONNECT TO EXISTING MANHOLE SANITARY MANHOLE OVERDEPTH 8" PVC SANITARY SEWER, SDR 26,15-201 DEEP SANITARY SEWER PIPE OVERDEPTH 0' -5' ADDITIONAL DEPTH IPE OVERDEPTH 5' 10' SANITARY SEWER p ADDITIONAL DEPTH 4" pVC, SDR 26 RISER PIPE COST SAVINGS REMOVE BITUMINOUS PAVEMENT COMMON EXCAVATION 4' DIAMETER SANITARY MH, CONSTRUCT OVER EXISTING SEWER PIPE 4' DIAMETER SANITARY MH 8 pVC SANITARY SEWER, SDR 35, 0' -10' DEEP AGGREGATE BASE, CLASS 5 TYPE LV 3 NON WEARING COURSE MIXTURE (B) BITUMINOUS MATERIAL FOR TACK COAT TYPE LV 4 WEARING COURSE MIXTURE (B) LS LF EA LF LF LF LF LF SY CY EA EA LF TN TN GAL TN U Price Total Price LS COST ESTUAATE I 000034 - 07000 -0 $125,000.00 $125,000.00 1 $35.00 $1,750.00 50 $2,500.00 $2,500.00 1 $125.00 $3,125.00 25 $45.00 $2,250.00 50 $6.00 $714.00 119 $12.00 $2,988.00 249 $30.00 $1,800.00 60 CONSTRUCTION TOTAL $140,127.00 LS COST ESTUAATE I 000034 - 07000 -0 $3.00 $1,890.00 630 $14.00 $2,940.00 210 $3,000.00 $3,000.00 1 $2,500.0 $2,500. 1 $40.00 $15,800.00 395 $15.00 $6,225.00 415 $45.00 $3,375.00 75 $3.00 $105.00 35 $50.00 $2,750.00 55 TOTAL 38,585. CONSTRUCTION LS COST ESTUAATE I 000034 - 07000 -0 April 21, 2008 Mr. Mark Rossow LMCIT Claims Berkley Risk Services 145 University Ave. W. St. Paul, MN 55103 -20 Subject: Summons of a summons received at our office today: This serves as notification McCombs Frank Roos Associations, Inc., Plaintiff VS. d Avalon Homes, Defendants [- (; �- r t -L � I- (Facsimile 651/281 -1297) City of New Hope an c ontracted with Avalon Homes for a housing protect that never materialized n otified During 2006 -200 the city contra irrt onded rovement project rto. 793). In Octobe e city owned P oper f or due to the real estate market (city p Homes. Subsequently, New Hope's city attorney resp unpaid services owed by Avalon of McCombs Frank Roos A Inc•'s intent to file a claim again ent (October 26, 2007, correspondence attached). regarding the Mechanic's Lien Statem g g Please handle on behalf of the city. S' cer 3 , Valerie Leone, CMC City Clerk Enc: Summons Mechanics Lien Statement correspondence cc: Steve Holmquist, Ray Smith Insurance Agency, Inc. Julie Linnihan, Finance Manager Kirk McDonald, City Manager Curtis Jacobsen, Director of Community Development Steve Sondrall, City Attorney I'I'Y ®F NEW HOY Minnesota 55428 -489 * w�'�'w• ci.new- hope.rnn.us 4401 Xylon Avenue North New Hope, 763- 531 -5109 ®Police (non - emergency): 763 -531 5170 ®P4 Pub Works Fax: 763-592 City City Hall: 763-531-51 City Hall Fax: 763- 531 -5136 ®Police Fax. 763-531-5 1 March 24, 2009 4 -0 U.S. Bank Plaza offices in 200 South Sixth Street Minneapolis Minneapolis, MN 55402 (612) 337 -9300 telephone Saint Paul (612) 337 -9310 fax St. Cloud httpJl�envw. ken nedy- grave n.com Equal Opportunity Employer Affirmative Action, WCH R E D March 24, 2009 Kirk McDonald City Manager City of New Hope 4401 Xylon Avenue North MN 55428 -489 -- - - - -- jAMEs J. THOMSON Attorney at Law Direct Dial (612) 337 -9209 Email: jthomson @lcennedy- gravcn.com New Hope, RE McCombs Frank Roos Associates, Inc. V. City of New Hope, Avalon Homes, Inc., et al. Court File No. 27 -CV -08 -9576 Dear Kirk: Bement and Release regarding Enclosed for your files is to . Pursuant l to Paragraph 2131 of the Settlement Agreement' he City the above - referenced matter. days o pp to return all M uesti needs y FRA w ork product rel unc11 t ons relating to that If you have w q e t the agreement by the New Hope City Co ment lease let me know. If not, you can send the materials directly to MFRA. require , p Thanks to you, Steve and Curtis for all of your assistance in this matter. Sincerely, Ja es . homson JT /cr Enclosure cc (w /encl): Steven A. Sondrall Mark Rossow (LMCIT No. 11064343) Curtis Jacobson 3490820 JJT BE295 -199 4 -0 U.S. Bank Plaza offices in 200 South Sixth Street Minneapolis Minneapolis, MN 55402 (612) 337 -9300 telephone Saint Paul (612) 337 -9310 fax St. Cloud httpJl�envw. ken nedy- grave n.com Equal Opportunity Employer Affirmative Action, Kirk McDonald City Manager City of New Hope 4401 Xylon Avenue North MN 55428 -489 -- - - - -- jAMEs J. THOMSON Attorney at Law Direct Dial (612) 337 -9209 Email: jthomson @lcennedy- gravcn.com New Hope, RE McCombs Frank Roos Associates, Inc. V. City of New Hope, Avalon Homes, Inc., et al. Court File No. 27 -CV -08 -9576 Dear Kirk: Bement and Release regarding Enclosed for your files is to . Pursuant l to Paragraph 2131 of the Settlement Agreement' he City the above - referenced matter. days o pp to return all M uesti needs y FRA w ork product rel unc11 t ons relating to that If you have w q e t the agreement by the New Hope City Co ment lease let me know. If not, you can send the materials directly to MFRA. require , p Thanks to you, Steve and Curtis for all of your assistance in this matter. Sincerely, Ja es . homson JT /cr Enclosure cc (w /encl): Steven A. Sondrall Mark Rossow (LMCIT No. 11064343) Curtis Jacobson 3490820 JJT BE295 -199 MOORE, COSTELLO & HART, P.L.L P Wi 24 2009 A Limited Liability Partnership REPLY TO MINNEAPOLIS OFFICE WRITER'S DIRECT DIAL NUMBER (612) 395 -8685 c hanson @mchlaw.com March 20, 2009 Dawn M. Isackson Messerli & Kramer P.A. 1800 Fifth Street Towers 150 South Fifth Street Minneapolis, MN 55402 James T. Thomson Kennedy & Graven 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 Timothy J. Hassett, Esq. Felhaber, Larson, Fenlon & Vogt, P.A. 444 Cedar Street, Suite 2100 St. Paul, MN 55101 -2136 Re: McCombs Frank Roos V. Avalon Homes Dear Counsel: Enclosed lease find an original fully- executed settlement f confidential settlement to the above - entitled matter. p I am hand delivering the payment funds to Ms. Isackson. Very truly yours, /rnh Enclosures 1070217.1 MOORE, COSTELLO & HART, P.L.L.P. By R helle N. Hanson Paralegal to John M. Harens r- cwTH ST - SUITE 1400 - ST. PAUL, MN 55101 -1792 • TEL. (651) 227 -768 • FAX (651) 602 -2670 ^e Qann 900 2ND AVENUE SOUTH - SUITE 1500 - MINNEAPOLIS, MN 55402 -5079 - TEL. (612) 673 -01411 • rHA ku —i - -- SETTLEMENT AGREEMENT AND RELEASE THIS AGREEMENT is fully effective as of February 11, 2009, and is entered into by the following Parties on behalf of themselves and their heirs, personal representatives, successors, assigns, subrogees, insurers and persons identified in interest with all of the foregoing: A. Avalon Homes, Inc. ( "Avalon "); B. McCombs Frank Roos Associates, Inc. ( "MFRA "); and C. City of New Hope ( "City ") RECITALS A. The Parties participated in this mediation to resolve the dispute related to the engineering and surveying services at the Prairie Ridge Development (the "Project "). B. As the result of a mediation session with John M. Harens on February 11, 2009, the Parties reached a settlement of all of the above claims. The Parties now desire to settle all claims which have been asserted or could have been asserted as more fully set forth below: FOR GOOD AND VALUABLE CONSIDERATION, the Parties agree as follows: 1, RELEASE OF CLAIMS. A. Upon payment of the sums described in the exhibits identified in Paragraph 2 below, the sufficiency of which is hereby acluiowledged, the Parties hereby unconditionally and mutually release and forever discharge each other, and their respective insurers, sureties, consultants, successors, parents, affiliates, assigns, MFRAIAvalon Homes /City of New Hope 1 settlement Agreement employees, agents, attorneys, dealers and distributors, officers and directors, from any and all known or unknown actions, causes of action, suits, demands, rights, and damages of whatever kind or nature, arising out of or related to events, acts or omissions arising out of or related the Project, including but not limited to claims for (i) property damage; (ii) bodily injury; (iii) compensatory, consequential or punitive damages; (iv) costs or expenses; (v) derivative claims; (vi) attorney's fees; and (vii) additional work; and (viii) any other compensation of any kind or nature, whether known or unknown, foreseen or unforeseen, asserted or unasserted, including but not limited to all claims that the Parties are or should be aware of. B. The Parties understand that the damages which have been claimed or which could have been claimed may be more extensive than presently known or contemplated and represent that they are therefore relying upon their own analysis of the defects, damages and potential damages and claims and potential claims against the other parties and that they are not relying upon representations or statements by the other parties or anyone retained by or representing the other parties with regard to any such matters. C. The Parties agree that if any of them bring a contribution or indemnity action for the same claims released by this Agreement against any person who is not a party to this Agreement, whether such action is direct or indirect, or based on a claimed right of subrogation, contribution or indemnity, that the party asserting such action shall indemnify, defend and hold harmless the Parties from any claims by the new party. 2, CONSIDERATION. MFRAIAvalon Homes /City of New Rope 2 Settlement Agreement A. Consideration for MFRA. MFRA agrees to accept the consideration in full settlement of its claims and as consideration for the other terms and conditions of this Agreement the terms set out on the attached Exhibit A, which has been executed by MFRA, and shall be held by the mediator in accordance with the terms of paragraph C below. Said consideration includes payment of a certain sum of money and additional consideration as described below within Paragraph B. B. C onsideration Extended by the City and Avalon The City and Avalon agree to pay the consideration described in their respective exhibits described below in exchange for a full release of the claims against and between each other and such other terms and conditions of this Agreement, which exhibits have been separately executed, and shall be held by the mediator in accordance with the terms of paragraph C below or except as required by law. In addition to the sums described on the attached Exhibits B and C, the City agrees, as additional consideration, subject to Minnesota law, to the following: 1, The City agrees to return all MFRA work product, related to the Project, to MFRA within thirty (3 0) days of approval of this Agreement by the New Hope City Council; and 2. Give notice to any prospective developers of the land, where the Project was to be located, that MFRA completed professional site engineering and surveying work for a previously anticipated residential development that was not constructed. Exhibit B — Consideration of Avalon Exhibit C — Consideration of City MFRA /Avalon Homes /City of New Hope 3 Settlement Agreement C. Confidentiality of Consideration All Parties acknowledge the sufficiency of the consideration for this Agreement, but further agree that such consideration shall be kept confidential in accordance with the following terms: (1) Exhibits A through C have been separately executed by the respective party identified with said Exhibits, by an attorney authorized to do so on the party's behalf, or by an attorney whose signature is hereby ratified by the respective Parties. (2) Exhibits A through C shall be held in escrow by the mediator and shall not be disclosed to any of the other parties unless and until the mediator determines, in his sole discretion, that it is necessary to disclose the contents of one or more of said exhibits in order to effectuate and enforce the terms of this Agreement or if otherwise required by law. (3) The consideration identified in Exhibits A through C shall be held in escrow by the mediator and shall not be disbursed until the mediator receives all consideration and a fully executed release. 3. NO ADMISSION OF LIABILITY. The Parties recognize and agree that this settlement is the compromise of disputed claims and that the consideration accepted and paid hereunder is not intended nor shall it be construed by anyone to be an admission of liability by or on behalf of any of the Parties, by whom all such liability is expressly denied, said Parties intending by this settlement merely to avoid litigation and buy their peace. 4. DISMISSAL OF SUITS Upon payment pursuant to paragraph 2, the Parties hereby authorize and direct their attorneys of record to dismiss with prejudice all claims, counterclaims, third -party claims, or cross claims among and between each other and without costs, disbursements or attorney's fees to any party. This dismissal includes the case captioned McCombs, Frank Roos Associates Inc ...y. City of New Ho ge, et al. which is identified as Hennepin County Court file number 27 -CV -08 -9576. MFRA /Avalon Ftomes /City of New Hope 4 Settlement Agreement 5. BINDING EFFECT. The terms of this Settlement Agreement and Release shall be binding upon and be enforceable against and shall inure to the benefit of the Parties hereto jointly and severally and the insurers, sureties, heirs, successors, personal representatives, parents, subsidiaries, affiliated companies, employees, agents, and assigns of each. The Parties hereto acknowledge that this Agreement was the result of a mediation conducted by John M. Harens (the "Mediator ") and that they each received in writing the statutory mediation disclosures including the following: the mediator has no duty to protect their interests or provide them with information about their legal rights; signing a mediated settlement agreement may adversely affect their legal rights; and they should consult an attorney before signing a mediated settlement agreement if they are uncertain about their rights. In entering this Agreement, the Parties represent that they have relied upon the advice of their attorneys, who are the attorneys of their own choice, concerning the legal consequences of this Agreement; that the terms of the Settlement Agreement have been completely read and explained to them by their attorneys; and that the terms of this Agreement are frilly understood and voluntarily accepted by the Parties. 6. TIMELINESS Each Party shall send within 30 days of approval by New Hope City Council, the executed signature page to this Agreement and consideration to be paid in the confidential Exhibits to the mediator, John Harens of Moore, Costello & Hart, P.L.L.P., NIFRA /Avalon Homes /City of New ]-lope 5 Settlement Agreement where the money will be held and disbursed according to the terms stated in paragraph 2 of this Agreement. 7. ENTIRE AGREEMENT The Parties further understand and agree that this document contains the entire agreement between the Parties with respect to the settlement of the claims described herein, and that the terms of this Agreement are contractual and not a mere recital. By their signatures below the Parties each represent that they have carefully read this document, laiow and understand the terms and effect hereof, have fully discussed the terms and effect of this document with their attorneys, and have signed this Agreement as their free and considered act. This Agreement includes three separate signature pages (pages 7 to 9 hereof) and includes three separate exhibits (Exhibits A, B and C) in the possession of the mediator. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any of its other provisions. 8. SIGNATURES IN COUNTERPART This Agreement may be executed in counterparts, including by electronic transmission, and is effective when each party has executed a counterpart. [BALANCE OF PAGE NOT USED] MFRAIAvalon Homes /City of New Hope Settlement A;reement A) Its MFRA/Avalon Homes /City of New Hope Settlement Agreement McCa s ank oo Associates, Inc. By Its C MFRA/Avalon Homes /City of New Hope Settlement Agreement City of New Hope By Its 1077006.1 NIFRA/Avaloll I-I of New HOPe Settlement Agreement