110915 EDACITY OF NEW HOPE
EDA MEETING
City Hail, 4401 Xylon Avenue North
November 9, 2015
EDA Meeting will commence upon
adjournment of the City Council Meeting
President Kathi Hemken
Commissioner John Elder
Commissioner Andy Hoffe
Commissioner Eric Lammle
Commissioner Jonathan London
1. Call to order - EDA Meeting of November 9, 2015
2. Roll call
Approval of Minutes:
• October 12, 2015
4. Resolution approving contract with Nitti Rolloff Services, Inc. for the site grading of 4415
Nevada Avenue North (improvement project no. 965)
5. Resolution approving temporary construction easement over 4315 Nevada Avenue North
relating to the site grading of 4415 Nevada Avenue North (improvement project no. 965)
6. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes October 12, 2015
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development
Authority to order at 7:36 p.m.
ROLL CALL Present: Kathi Hemken, President
John Elder, Commissioner
Andy Hoffe, Commissioner
Eric Lamrnle, Commissioner
Jonathan London, Commissioner
Staff Present: Kirk McDonald, City Manager
Aaron Chirpich, Community Development Specialist
Tim Fournier, Police Chief
Valerie Leone, City Clerk
Jeff Sargent, Director of Community Development
Steve Sondrall, City Attorney
Stacy Woods, Assistant City Attorney
Also Present: Stacie Kvilvang, Ehlers
APPROVAL OF Motion was made by Commissioner Hoffe, seconded by Commissioner
MINUTES London, to approve the minutes of September 28, 2015. Voting in favor:
Item 3 Hemken, Elder, Hoffe, London; Voting against: None; Absent; Abstained:
Lammle. Motion carried.
ESTABLISH TIF President Hemken introduced for discussion EDA Item 4, Resolution
DISTRICT requesting that the City Council of the City of New Hope call for a public
Item 4 hearing on the modification of redevelopment project no. 1 and the
establishment of the Industrial Equities tax increment financing district.
Mr. Jeff Sargent, director of community development, stated the resolution
requests the Council to call for a public hearing which is agenda item 8.2 on
the Council Meeting agenda.
He explained Industrial Equities recently purchased the vacant building at
9449 Science Center Drive and intends to redevelop the site into a 48,000
square foot multi -tenant industrial building. He stated the developer has
requested $250,000 in TIF assistance to pay for demolition, abatement, and soil
corrections on the site. He stated Ehlers was consulted and reviewed the
developer's budget and pro forma and determined the request is reasonable.
Mr. Sargent stated he EDA must make the request to the Council for a public
hearing to establish a TIF district. The hearing would be held November 23,
2015.
EDA Meeting
Page 1 October 12, 2015
Ms. Stacie Kvilvang of Ehlers was recognized.
Commissioner London asked Ms. Kvilvang to expound on the use of tax
increment financing and tax implications.
Ms. Kvilvang stated the property is currently valued at $400,000 which is
considered the frozen value throughout the term of the district. The future
value is estimated at $2.4 million. The increase in valuation is what is
captured for tax increment. A large portion of taxes goes into the state's pool
for fiscal disparities. She stated the base tax capacity is only $7,000 ($400,000
value) and is shared by the three taxing jurisdictions (city, county, school
district). She explained the developer will pay $102,000 annually in future
taxes of which $38,000 is the gross amount of TIF generated taxes. She stated
the city will receive 100 or $3,800 annually for administration of the district,
and the balance of $34,000 would be available to reimburse the developer. She
stated it will take approximately nine years to repay the TIF note. She noted if
property values inflate the note may be paid off in less than nine years.
RESOLUTION 2015-17 Commissioner Lammle introduced the following resolution and moved its
Item 4 adoption "RESOLUTION REQUESTING THAT THE CITY COUNCIL OF
THE CITY OF NEW HOPE CALL FOR A PUBLIC HEARING ON THE
MODIFICATION OF REDEVELOPMENT PROJECT NO. 1 AND THE
ESTABLISHMENT OF THE INDUSTRIAL EQUITIES TAX INCREMENT
FINANCING DISTRICT)." The motion for the adoption of the foregoing
resolution was seconded by Commissioner Elder, and upon vote being taken
thereon, the following voted in favor thereof: Hemken, Elder, Hoffe, Lammle,
London; and the following voted against the same: None; Abstained: None;
Absent: None; whereupon the resolution was declared duly passed and
adopted, signed by the president which was attested to by the executive
director.
IMP. PROJECT 972 President Hemken introduced for discussion EDA Item 5, Resolution
Item 5 approving Purchase Agreement for the acquisition of 5407 Yukon Avenue
North (improvement project no. 972).
Mr. Aaron Chirpich, community development specialist, stated staff requests
the EDA consider acquisition of 5407 Yukon Avenue North for up to $100,000.
He explained the foreclosure was recently listed for $73,000, and there were
multiple offers on the property. He stated the city offered $80,000 as a final
and best offer, and the seller accepted a different offer. Mr. Chirpich asked the
EDA to authorize expenditure up to $100,000 for the property as staff would
like to be prepared to purchase if the transaction falls through and the
property becomes available again.
He illustrated the property and deteriorated condition and functionally
obsolete. He explained the plan would be to purchase the property, demolish
the house, and facilitate construction of a new single family home valued at
$250,000.
Mr. Chirpich noted if the city were to purchase the property, EDA and CDBG
funds would be utilized. He stated there would be no income restrictions on
EDA Meeting
Page 2 October 12, 2015
the sale of the property. Commissioner London pointed out this type of
housing presents an opportunity to persons desiring to locate in the Parkview
neighborhood to do so for a slightly lesser cost.
Mr. Chirpich explained staff would like to discuss the scattered site housing
program in greater detail at the October work session.
Commissioner Lammle expressed support for the acquisition and authority
up to $100,000 to acquire the property.
RESOLUTION 2015-18 Commissioner Lammle introduced the following resolution and moved its
Item 5 adoption (with authority to expend up_ to $100,000):,"RESOLUTION
APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF
5407 YUKON AVENUE NORTH (IMPROVEMENT PROJECT NO. 972)."
The motion for the adoption of the foregoing resolution was seconded by
Commissioner Elder, and upon vote being taken thereon, the following voted
in favor thereof: Hemken, Elder, Hoffe, Lammle, London; and the following
voted against the same: None; Abstained: None, Absent: None; whereupon the
resolution was declared duly passed and adopted, signed by the president
which was attested to by the executive director.
IMP. PROJECT 973 President Hemken introduced for discussion EDA Item 6, Resolution
Item 6 approving Purchase Agreement for the acquisition of 6065 Louisiana Avenue
North (improvement project no. 973).
Mr. Aaron Chirpich, community development specialist, stated staff would
like to acquire 6065 Louisiana as part of the scattered site housing program for
up to $148,000. He stated the property is a foreclosure that is in a deteriorated
condition. Staff proposes to purchase the property, demolish the house,
subdivide the lot and facilitate construction of two single family homes.
Mr. Chirpich stated the current list price of the property is $149,900, but the
home is in need of several repairs and staff believes it can be acquired for less
than the list price. Negotiations are taking place and the city's current offer is
at $135,000.
He stated if the city's offer is accepted the city must take action quickly and it
would be advantageous to have the EDA's approval. Funding for the
acquisition and demolition costs would initially be paid by EDA funds and
the EDA would be reimbursed with CDBG funds at a later date.
Commissioner Lammle pointed out the city's goal of six home scattered site
acquisitions. Mr. McDonald noted the goal has been met as the city has
purchased four lots this year and facilitated construction of six new homes.
Commissioner London spoke of the need to promote private development in
New Hope.
RESOLUTION 2015-19 Commissioner London introduced the following resolution and moved its
Item 6 adoption (with authority to expend up to $148,000): ""RESOLUTION
APPROVING PURCHASE AGREEMENT FOR THE ACQUISITION OF
EDA Meeting
Page 3 October 12, 2015
6065 LOUISIANA AVENUE NORTH (IMPROVEMENT PROJECT NO.
973)." The motion for the adoption of the foregoing resolution was seconded
by Commissioner Hoffe, and upon vote being taken thereon, the following
voted in favor thereof: Hemken, Elder, Hoffe, Lammle, London; and the
following voted against the same: None; Abstained: None; Absent; none;
whereupon the resolution was declared duly passed and adopted, signed by
the president which was attested to by the executive director.
ADJOURNMENT Motion was made by Commissioner London, seconded by Commissioner
Lammle, to adjourn the meeting. All present voted in favor. Motion -carried.
The New Hope EDA adjourned at 8:00 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
EDA Meeting
Page 4 October 12, 2015
Originating Department
Community Development
By: Aaron Chirpich, CD Specialist
Jeff Sargent, CD Director
EDA
Request for Action
Approved for
November ovember 9, 2015
By: Kirk McDonald, City Manager
Agenda Section
EDA
Item No.
E
Resolution approving contract with Nitti Rolloff Services, Inc for the site grading of 4415 Nevada Avenue
North (improvement project no. 965)
Requested Action
Staff requests approval of a resolution awarding a contract for the re -grading of the city owned
property at 4415 Nevada Avenue North, to the low and responsible bidder, Nitti Rolloff Services, Inc
in the amount of $8,334.
Policy/Past Practice
When public bidding is required as part of the Scattered Site Housing Program, it is practice of staff to
present contracts to the EDA for consideration.
Background
The EDA has recently acquired the single family home located at 4415 Nevada Ave N, as part of the
Scattered Site Housing Program. The property was purchased with the intent of clearing the lot for
redevelopment. The home and all other site improvements have been removed as of October 15th.
The site contains a large berm or hill where the house once stood. Prior to demolition of the home, staff
anticipated that some re -grading of this hill would be necessary. Once demolition of the home was
complete, staff requested that the City Engineer review the site topography and make recommendations
regarding the re -grading of the site. The City Engineer recommended leveling out the berm to make the
site more suitable for construction. Following the on-site assessment, the City Engineer worked quickly to
develop a grading plan that was used to solicit bids for the project. Staff requested quotes from three
excavating contractors and received two bids. The bid results are as follows:
All Metro Excavating, Inc $12,348
Nitti Rolloff Services, Inc $8,334
Motion by
Second by
Award Site Grading Contract for 4415 Nevada Improvement Proiect 965-11-9-1
Request for Action,
Page 2
November 9, 2015
Staff is interested in completing the grading work as soon as possible as colder weather is fast
approaching. Therefore, the selected contractor has been given until November 30th to complete the
grading work.
Funding
The EDA will be reimbursed by Hennepin County with Community Development Block Grant funds for
all site grading costs.
Recommendation
Staff recommends that the EDA approve the resolution approving the contract for $8,334 with Nitti
Rolloff Services, Inc for the site grading work at 4415 Nevada Avenue North.
Experience with Recommended Contractor
The EDA has recently worked with the recommended low bidding contractor. Nitti Rolloff Services, Inc
completed the demolition and site grading work at 9121 62nd Avenue and also completed the demolition
of the home at 4415 Nevada Avenue. The overall experience working with the contractor was smooth
and the quality of work completed was acceptable.
Attachments
Resolution
4 Bids Received
• Grading Plan
EDA RESOLUTION NO. 15 -
RESOLUTION APPROVING CONTRACT WITH NMI ROLLOFF SERVICES INC
FOR THE SITE GRADING OF 4415 NEVADA AVENUE NORTH
BE IT RESOLVED by the Economic Development Authority, in and for the City of
New Hope ("EDA"), as follows:
WHEREAS, the EDA purchased that certain real property located at 4415 Nevada
Avenue North, New Hope, MN (the "Property") with the intentions of redeveloping the
Property; and
WHEREAS, City staff intends to redevelop the Property in accordance with the City's
scattered site housing program and policy and return the Property to the tax rolls for the benefit
of all taxing jurisdictions; and
WHEREAS, City staff is exercising due diligence to correct issues with the Property's
current topography by re -grading the entire Property; and
WHEREAS, Nitti Rolloff Services Inc submitted a proposal that meets all of the Project
Specifications as set forth on the attached Exhibit A (the "Work") and is the low bid; and
WHEREAS, it is in the best interests of the EDA and the City to enter into a contract
with Nitti Rolloff Services Inc for the purpose of performing the Work; and
WHEREAS, City staff is hereby seeking approval from the EDA of the selection of Nitti
Rolloff Services Inc as the duly qualified contractor to perform the Work.
NOW, THEREFORE, BE IT RESOLVED by the EDA in and for the City of New
Hope as follows:
1. That the above recitals are incorporated herein by reference.
2. That selection of Nitti Rolloff Services Inc as the Contractor to perform the re-
grading of the Property pursuant to the Project Specifications is approved, it being
in the best interest of the EDA and the City to prepare the Property for
redevelopment in accordance with the City's scattered site housing program and
policy.
3. That the payment of $15,430 to Nitti Rolloff Services Inc to perform the Work is
hereby approved.
Attest:
4. The President, Executive Director and New Hope City staff are authorized and
directed to sign all appropriate documents, and to take whatever additional actions
are necessary or desirable, to complete the re -grading of the Property in
accordance with the contract to be prepared by the City Attorney.
Dated the day of November, 2015.
Kirk McDonald, Executive Director
Kathi Hemken, President
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Nitti Rolloff Services, Inc
PO Box 490726
Blaine, MN 55449
I Name /Address
The City of New Hope
4401 Xylon Ave N
New Hope, MN 55428
Atten: Aaron Chirpich
Estimate
Date
Estimate #
10/29/2015
991
I Rep I Job Address I
4415 Neveda
Description
Qty
Cost
Total
Mobilization of excavation equipment.
3
125.00
375.00
Site grading.
1
3,000.00
3,000.00
Remove retaining wall
1
500.00
500.00
Erosion Control
1
450.00
450.00
Black Dirt - (Per ton delivered - Minimum of 10 ton per load.)
20
27.00
540.00
Sod
250
3.70
925.00
Hydroseed
2,280
0.80
1,824.00
Export fill.
60
12.00
720.00
Total of all Materials and Labor
$8,334.00
The above prices, specifacations and conditions are satisfactory and hereby accepted. Nitti Rolloff Services Inc is authorized to do the work as
specified. Payments will be made as outlined above. All payments not received as agreed upon are subject to finance charges. Any legal action that
needs to be taking to collect monies owed will be at responsibity of the customer named above.
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Originating
Community Development
By: Aaron Chirpich, CD Specialist
Teff Sargent, CD Director
EDA
Request for Action
Approved for Agenda
November 9, 2015
By: Kirk McDonald, City Manager
Section
EDA
Item No.
P
Resolution approving temporary construction easement over 4315 Nevada Avenue North relating to the
site grading of 4415 Nevada Avenue North (improvement project no. 965)
Requested Action
Staff requests approval of a resolution authorizing a temporary construction easement over the
private property located at 4315 Nevada Avenue. The easement is necessary in order to complete site
grading work at the EDA owned property located at 4415 Nevada Avenue.
Policy/Past Practice
When it is necessary to enter private property to complete work that is related to EDA redevelopment
projects, it is practice of staff to work with adjacent landowners to secure access through temporary
easements. Such easements need to be reviewed and approved by the EDA.
Background
The EDA has recently acquired the single family home located at 4415 Nevada Avenue, as part of the
Scattered Site Housing Program. The property was purchased with the intent of clearing the lot for
redevelopment. All site improvements have been removed as October 15th.
The site has unique topography as the area where the house once stood is occupied by a large hill. Upon
review by the City Engineer, the site will need to be re -graded and the hill leveled to create a more
suitable building site for the anticipated construction of two new homes. In order to complete the grading
work, the excavating contractor will have to enter the property at 4315 Nevada Avenue, directly south of
the EDA owned property. It is necessary for the contractor to enter the adjacent property in order to
remove a retaining wall that was built to hold back the hill that is being removed. Staff has met with the
adjacent landowner and they are in favor of the proposed project and are excited to see the retaining wall
removed from their property. The temporary construction easement will provide the necessary legal
authority for the contractor to enter the private nronerty.
Motion by [e&)17 00, Second by
To:
Easement for Site Grading of 4415 Nevada Improvement Project 965-11-9-15
Request for Action,
Page 2
November 9, 2015
Funding
The cost of the temporary easement is $1. Funding will be provided from EDA reserves.
Recommendation
Staff recommends that the EDA approve the resolution approving the temporary easement in order to
facilitate the site grading work at 4415 Nevada Avenue North.
Attachments
Resolution
• Temporary Easement
EDA RESOLUTION NO. 15 -
RESOLUTION APPROVING TEMPORARY CONSTRUCTION EASEMENT OVER
4315 NEVADA AVENUE NORTH RELATING TO THE SITE GRADING OF
4415 NEVADA AVENUE NORTH
BE IT RESOLVED by the Economic Development Authority, in and for the City of
New Hope {"EDA" j, as follows:
WHEREAS, the EDA purchased that certain real property located at 4415 Nevada
Avenue North, New Hope, MN (the "Property") with the intentions of redeveloping the
Property; and
WHEREAS, City staff intends to redevelop the Property in accordance with the City's
scattered site housing program and policy and return the Property to the tax rolls for the benefit
of all taxing jurisdictions; and
WHEREAS, City staff is exercising due diligence to correct issues with the Property's
current topography by re -grading the entire Property; and
WHEREAS, to facilitate access and re -grading of the Property, it was necessary for the
EDA to obtain a Temporary Easement for Construction and Grading over the adjacent property
located at 4315 Nevada Avenue North;
WHEREAS, the City Attorney has drafted a Temporary Easement for Construction and
Grading utilizing a grading plan prepared by the City Engineer, and has presented it to the
property owners of 4315 Nevada Avenue North for their review and approval, a copy of which is
attached hereto as Exhibit A; and
WHEREAS, it is in the best interests of the EDA and the City to obtain these temporary
easement rights over 4315 Nevada Avenue North to allow for access to the adjacent Property for
the re -grading work;
WHEREAS, City staff is hereby seeking approval from the EDA to accept the
Temporary Easement for Construction and Grading.
NOW, THEREFORE, BE IT RESOLVED by the EDA in and for the City of New
Hope as follows:
1. That the above recitals are incorporated herein by reference.
Attest:
2. That the Temporary Easement for Construction and Grading over the property
located at 4315 Nevada Avenue North is hereby approved, it being in the best
interest of the EDA and the City to obtain access to the adjacent Property to
enable the contractor to perform the necessary re -grading work and for
redevelopment in accordance with the City's scattered site housing program and
policy.
3. The President, Executive Director and New Hope City staff are authorized and
directed to sign all appropriate documents, and to take whatever additional actions
are necessary or desirable, to execute the Temporary Easement for Construction
and Grading as drafted by the City Attorney.
Dated the day of November, 2015.
Kirk McDonald, Executive Director
Kathi Hemken, President
TEMPORARY EASEMENT FOR CONSTRUCTION AND GRADING
THIS INDENTURE, executed on the day of November, 2015, between West
Hennepin Affordable Housing Land Trust, a Minnesota nonprofit corporation, doing business as
Homes Within Reach ("Land Trust") and Cynthia S. Kirscher and Robert Gregory Kirscher, wife
and husband (jointly referred to herein as the "Kirschers") (Land Trust and Kirschers shall
sometimes be referred to herein jointly as the "Grantors") and the Economic Development Authority,
in and for the City of New Hope, a public body corporate and politic created pursuant to the laws of
the State of Minnesota ("EDA").
WHEREAS, Land Trust is the fee owner of that certain real property located at 4315 Nevada
Avenue North, New Hope, in Hennepin County, Minnesota, and legally described as:
Lot 1, Block 1, Sims Park Homes, Hennepin County, Minnesota.
WHEREAS, Kirschers are the owners of the residential building (a/k/a house) constructed
on the Property and are leasing the Property from Land Trust.
WHEREAS, the EDA is desirous of obtaining a temporary construction access easement
over, under and across the northern portion ofthe Property adjacent to 4415 Nevada Avenue North,
New Hope, as graphically depicted on the attached Exhibit A to enable the EDA to remove a
modular block retaining wall as part of a grading project being performed on the adjacent real
property located at 4415 Nevada Avenue North, New Hope and legally described as:
East 130 feet of Lots 26 and 27, Auditor's Subdivision No. 324, Hennepin County,
Minnesota.
WITNESSETH; That the Grantors in consideration of the sum of One Dollar ($1.00) and
other good and valuable consideration to it in hand paid by the EDA, the receipt whereof is hereby
acknowledged, do hereby grant, bargain and convey unto the said EDA, its successors and assigns, a
temporary construction easement including full and free right and authority to enter upon the
easement tract herein described below and graphically depicted on the attached Exhibit A, to remove
a modular block retaining wall (the "Improvement") in conjunction with the EDA's construction
grading project on the adjacent property at 4415 Nevada Avenue North, New Hope, Minnesota. The
EDA shall have the right to make such use as is reasonably necessary and advisable in the removal of
a retaining wall under and across the Property, and grading on the Property. The intention of the
parties hereto is that the aforesaid temporary construction easement shall terminate at midnight on
12-1-15.
The temporary construction easement described above is located over a tract of land situated
in the County of Hennepin and State of Minnesota, described as follows, to -wit:
a temporary construction easement over, under and across the Property
legally described as Lot 1, Block 1, Sims Park Homes, Hennepin County, Minnesota
as graphically depicted on the attached Exhibit A.
West Hennepin Affordable Housing Land
Trust d/b/a Homes Within Reach
By:
Janet Lindbo
Its: Executive Director
STATE OF MINNESOTA ) ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this day of November, 2015, by Janet
Lindbo, the Executive Director of West Hennepin Affordable Housing Land Trust, a Minnesota
nonprofit corporation, d/b/a Homes Within Reach.
Notary Public
2
Cynthia S. Kirscher
Robert Gregory Kirscher
STATE OF MINNESOTA }ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this day of November, 2015, by Cynthia S.
Kirscher and Robert Gregory Kirscher, wife and husband.
Notary Public
I, the undersigned, being the duly qualified and acting Clerk of the City of New Hope,
Minnesota, hereby certify that the Economic Development Authority, in and for the City of New
Hope, public body corporate and politic created pursuant to the laws of the State of Minnesota, has
duly accepted the foregoing easement.
Dated: November 2015
Drafted By:
Jensen Sondrall Persellin & Woods, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424-8811
3
City Cllerk
Exhibit A
Grading Plan With Graphic Depiction of Temporary Easement Area
See attached.
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