011116 EDA Meeting PacketCITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
January 11, 2016
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 January 11, 2016
2. Roll call
3. Approval of Minutes:
• December 14, 2015
4. Resolution approving non -enforcement agreement with Minnesota Housing Finance
Agency regarding indemnification provisions in purchase and redevelopment agreement
for "Compass Pointe" development - 6113 West Broadway (New Hope Planning Case 14-
03/Project 897)
Resolution approving contract with Scott's Tree Service for tree removal and stump
grinding at 6065 Louisiana Avenue North (project no. 973)
6. Resolution approving contract with Robinson Environmental Inc., for hazardous material
abatement at 6065 Louisiana Avenue North (project no. 973)
7. Adjournment
= OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes December 14, 2015
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development
Authority to order at 8:31 p.m.
ROLL CALL Present: Kathi Hemken, President
John Elder, Commissioner
Andy Hoffe, Commissioner
Eric Lammle, Commissioner
Jonathan London, Commissioner
Staff Present: Kirk McDonald, City Manager
Tim Fournier, Police Chief
Rich Johnson, Director of HR/Admin. Services
Valerie Leone, City Clerk
Chris Long, City Engineer
Bob Paschke, Director of Public Works
Susan Rader, Director of Parks & Recreation
Jeff Sargent, Director of Community Development
Steve Sondrall, City Attorney
Stacy Woods, Assistant City Attorney
APPROVAL OF Motion was made by Commissioner Hoffe, seconded by Commissioner
MINUTES London, to approve the minutes of November 23, 2015. All present voted in
Item 3 favor. Motion carried.
2016 FINAL LEVY President Hemken introduced for discussion EDA Item 4, Resolution
Item 4 authorizing the final levy of a special benefit levy pursuant to Minnesota
Statutes, Section 469.033, subdivision 6 and approval of a final budget for
fiscal year 2016.
Mr. Kirk McDonald, executive director, stated the resolution supports the
EDA levy of $150,000 which is the same amount as 2015.
RESOLUTION 2015-26 Commissioner Lammle introduced the following resolution and moved its
Item 4 adoption "RESOLUTION AUTHORIZING THE FINAL LEVY OF A
SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES,
SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A FINAL
BUDGET FOR FISCAL YEAR 2016." 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,; and the following voted against the same: London;
Abstained. None, Absent: None; whereupon the resolution was declared duly
passed and. adoptedsigned by the president which was attested to by the
executive director.
EDA Meeting
Page 1 December 14, 2015
IMP. PROJECT 964 President Hemken introduced for discussion EDA Item 5, Resolution
Item 5 authorizing an interfund loan for advance of certain costs in connection with
Tax Increment Financing District No. 11-1 created by the City of New Hope
and the New Hope Economic Development Authority (project no. 964).
Mr. Jeff Sargent, director of community development, explained this item
relates to the 8400 Bass Lake Road property. He stated Ehlers is
recommending for TIF reporting purposes, the city adopt a resolution to
combine interfund loans from 2008 and 2015 as they both relate to this
redevelopment property. The resolution has been drafted by Bob Deike, the
city's EDA attorney. He indicated Stacie Kvilvang of Ehlers is present if the
EDA has any questions.
RESOLUTION 2015-27 Commissioner Lammle introduced the following resolution and moved its
Item 5 adoption "RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR
ADVANCE OF CERTAIN COSTS IN CONNECTION WITH TAX
INCREMENT FINANCING DISTRICT NO. 11-1 CREATED BY THE CITY
OF NEW HOPE AND THE NEW HOPE ECONOMIC DEVELOPMENT
AUTHORITY (PROJECT NO. 964)." The motion for the adoption of the
foregoing resolution was seconded by Commissioner London, 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 Lammle, seconded by Commissioner
Elder, to adjourn the meeting. All present voted in favor. Motion carried. The
New Hope EDA adjourned at 8:35 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
EDA Meeting
Page 2 December 14, 2015
Agenda Title
Request for Action
January 11, 201$
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Jeff Sargent, Director of Community
Development
Agenda Section
EDA
Item Number
4
Resolution approving non -enforcement agreement with Minnesota Housing Finance Agency regarding
indemnification provisions in purchase and redevelopment agreement for "Compass Pointe" development —
6113 West Broadway (New Hope Planning Case 14-03)
Requested Action
Staff recommends approving the resolution approving the non -enforcement agreement with Minnesota
Housing Finance Agency (MHFA) regarding indemnification provisions in the purchase and redevelopment
agreement for the "Compass Pointe" development, located at 6113 West Broadway.
Policy/Past Practice
It is common practice for the Economic Development Authority (EDA) to approve modifications to purchase
and development agreements.
Background
Compass Pointe is refinancing its existing mortgage with MHFA. MHFA has requested that the EDA and the
City enter into agreements by which they agree that if MHFA ever acquires the property by foreclosure, that
the EDA and the City will not enforce against MHFA the release and indemnification covenants in Section 8.2
of the Purchase and Development Agreement (TIF agreement), or the hold harmless provisions in Section 9 of
the Planned Unit Development agreement against MHFA. All other aspects of these two agreements will
remain in place, except for the EDA and City agreeing not to enforce the hold harmless and indemnification
provisions if the resolution gets approved.
It should be noted that MHFA has also requested that the EDA execute Consents to three documents signed
by the developer in connection with the loan, an Allonge Endorsement to the TW Note, and Assignment of
Tax Increment Financing and an Assignment of Development Agreement. MHFA required that the developer
assign to MHFA the right to receive the tax increment payments under the Note as security for the MHFA
loan. In the Development Agreement, the parties acknowledged that the developer intended to secure
financing from MHFA, and the EDA specifically consented to an assignment of the tax increment financing to
MHFA as security for the MHFA loan. Therefore, it is the city's TIF attorney's opinion that those consents did
not require additional action by the EDA. Copies of the executed consents have been attached at the end of
this report.
The City Attorney and the City's TIF attorney have reviewed this request and have submitted memos
outlining their respective support of this action.
Recommendation
Staff recommends that the EDA approve the attached resolution.
I:\RFA\COMM DEV\Development\EDA Non -Enforcement Agreement Compass Pointe.docx
Request for Action, Page 2
Attachments
• Resolution
• Non -Enforcement Agreement
• Memo from Robert Deike
• Memo from Stacy Woods
• Assignment of Development Agreement
• Assignment of Tax Increment Financing
• Allonge Endorsement
EDA RESOLUTION NO, 2016 -
RESOLUTION APPROVING NON -ENFORCEMENT AGREEMENT WITH
MINNESOTA HOUSING FINANCE AGENCY REGARDING INDEMNIFICATION
PROVISIONS Vi PURCHASE AND REDEVELOPMENT AGREEMENT FOR
"COMPASS POINTE" DEVELOPMENT — 6113 WEST BROADWAY
(New Hope Planning Case 14-03)
BE IT RESOLVED by the Economic Development Authority in and for the City of New
Hope ("EDA") as follows:
WHEREAS, the EDA entered into a Purchase and Development Agreement with Compass
Pointe Limited Partnership, a Minnesota limited partnership ("Developer"), for the
Compass Pointe Development located at 6113 West Broadway, New Hope, Minnesota ("Property's;
WHEREAS, Developer is in the process of refinancing its mortgage with Minnesota
Housing Finance Agency ("MHFA");
WHEREAS, MHFA has requested, as a condition to the financing of Developer, that the
EDA agree that, in the event of foreclosure of the mortgage by MHFA, the EDA will not enforce the
Release and Indemnification Provisions against the MHFA as the fee owner of the Property;
WHEREAS, MHFA has presented a "Non -Enforcement Agreement" to the EDA for its
review, approval and execution, a copy of which is attached hereto as Exhibit A;
WHEREAS, the City Attorney has reviewed this request with City staff and determined that
this request is not objectionable and will not affect the EDA's rights as to Developer; and
WHEREAS, the EDA has considered MHFA's request at its meeting of January 11, 2016.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of New Hope that:
Attest:
1. That the Non -Enforcement Agreement attached hereto as Exhibit A, is approved and
the EDA, by and through the President and Executive Director are authorized and
directed to sign the Non -Enforcement Agreement.
Dated the 11th day of January, 2016.
Kathi Hemken, President
Kirk McDonald, Ex ;utive Director:
M
EXHIBIT1
� A EDA
�1mmmmird
FOR USE BY FILING OFFICER ONLY
NON -ENFORCEMENT AGREEMENT
THIS NON -ENFORCEMENT AGREEMENT (this "Agreement") is made effective
by the New Hope Economic Development Authority, a public body corporate and
politic under the laws of the State of Minnesota (the "EDA") in favor of the Minnesota Housing
Finance Agency (the "MHFA").
RECITALS
WHEREAS, Compass Pointe Limited Partnership, a Minnesota limited partnership, (the
"Borrower") has entered into a Purchase and Development Agreement (the "Development
Agreement'D with the EDA dated July 1, 2014, recorded July 1, 2014 as Document No(s).
A10092637 and T05181197 which affects the following described real property (the "Real
Property") located in the County of Hennepin, State of Minnesota:
See Exhibit A attached hereto.
WHEREAS, the Borrower, as fee owner of the Real Property, has applied for a mortgage
loan (the "Loan") from the MHFA;
WHEREAS, Section 8.2 of the Development Agreement contains certain release and
indemnification covenants by the Borrower in favor of the EDA (the "Indemnification
Provisions');
WHEREAS, the MHFA has requested, as a condition of accepting a HUD Risk -Sharing
Program Combination Mortgage, Security Agreement, and Fixture Financing Statement (the
"Mortgage) upon the Real Property as security for the Loan, that the EDA agree that, in the
event of foreclosure of the Mortgage by the MHFA, the EDA will not enforce the
Indemnification Covenants against the MI -IFA as the fee owner of the Real Property; and
WHEREAS, the EDA is willing to agree to such non -enforcement of the Indemnification
Covenants in accordance with the terms of this Agreement.
STOW THEREFORE, the EDA hereby agrees that, in the event the MHFA enforces its
right to foreclose the Mortgage in accordance with its terms and, as a result, becomes the fee
owner of the Real Property, that, subsequent to the MHFA taking ownership of the Real
Property, the EDA will not enforce the Indemnification Covenants of the Development
Agreement against the MBFA. Notwithstanding the foregoing, nothing in this Non -Enforcement
Agreement shall be deemed to limit or impair the rights of the EDA to enforce the obligations of
the Borrower under the Development Agreement.
IN WITNESS WHEREOF, this agreement has been duly executed this day of
NEW HOPE ECONOMIC DEVELOPMENT
AUTHORITY
By:
STATE OF MINNESOTA )
ss.
COUNTY OF RAMSY )
The foregoing instrument was acknowledged before me this day of
by , the and
of the New Hope Economic Development Authority,
corporate and politic of the State of Minnesota, on behalf of the Authority.
Notary Public
DRAFTED BY:
Winthrop & Weinstine, P.A.
225 South Sixth Street, Suite 3500
Minneapolis, Minnesota 55402
612-604-6400
the
a public body
EXHIBIT A
Legal Description
Lot 1, Block 1, Compass Pointe, according to the recorded plat thereof, Hennepin County,
Minnesota.
11311232v1
To: Jeff Sargent
From: Robert J. Deike
Date: January 5, 2016
Re: Compass Pointe MHFA Closing
The purpose of this memorandum is to provide an explanation of the various
documents that Compass Pointe Limited Partnership (the "Developer") requested
that the New Hope EDA ("EDA") execute in connection with the Developer's
securing of permanent financing for its housing development.
The EDA and the Developer entered into a Purchase and Development Agreement
dated July 1, 2014 (the "Development Agreement'). Pursuant to the Development
Agreement the Developer constructed a housing development on property that the
EDA deeded to the Developer and on certain other property owned by the
Developer. The EDA agreed in the Development Agreement that it would reimburse
the Developer for a portion of its development costs through the issuance and
payment of a tax increment revenue note (the "Note'. The construction has been
completed and the EDA has issued the Note to the Developer. The Note is payable
by the EDA from a portion of the tax increment from the development and from no
other source.
The Developer is in the process of securing permanent financing for the
development. The Developer's lender is the Minnesota Housing Finance Agency
("MHFA"), As a condition to making the loan to the Developer, MHFA has
required that the Developer get certain documents executed by the EDA.
One of the documents that MHFA is requiring to be executed by the EDA is a Non -
Enforcement Agreement. The Development Agreement contains certain provisions
by which the Developer has agreed to indemnify the EDA against claims arising
from the construction or operation of the housing development. Those provisions are
intended primarily to protect the EDA from claims arising from the construction of
the development but do not terminate when the construction is complete.
MHFA has stated that it cannot be subject to indemnification provisions like the ones
in the Development Agreement. So it has proposed the Non -Enforcement
Agreement which provides that if NHIFA becomes the owner of the development,
which would happen if NIHFA foreclosed its mortgage, the EDA agrees that it will
not enforce the indemnification provisions against N HFA. The Non -Enforcement
Agreement only applies to MHFA and does not affect the EDA's rights to enforce
the provisions against the Developer or any other party that might become subject to
the terms of the Development Agreement. Because this agreement makes a change
from what the Development Agreement currently says, it requires approval by the
EDA Board.
MHFA has also requested that the EDA execute Consents to three documents signed
by the Developer in connection with the loan, an Allonge Endorsement to the Note,
an Assignment of Tax Increment Financing and an Assignment of Development
Agreement. 1VlI IFA required that the Developer assign to MHFA the right to receive
the tax increment payments under the Note as security for the NiffA loan. The
above documents are collectively intended to accomplish that assignment.
In the Development Agreement the patties acknowledged that the Developer
intended to secure financing from MHFA, and the EDA specifically consented to an
assignment of the tax increment financing to WMA as security for the MHFA loan.
Therefore, in my opinion those consents did not require additional action by the EDA
Board.
Please let me know if you have any questions or need clarification on the matters
discussed in this memorandum.
0 Page 2
JENSEVSONDRALL
PERSELLINMOODS
■ P.A., ATTORNEYS AT LAW
8525 EDINBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1888
TELEPHONE (768) 424-8811 ■ TE1_EFAx (763) 493.5193
www.jspvAaw.com
MEMORANDUM
Date:
January 5, 2016
To:
Kirk McDonald and Jeff Sargent
From:
Stacy Woods
Re:
Compass Pointe Limited Partnership — Refinance with MHFA and MHFA's
Request for EDA and City Not To Enforce Hold Harmless and Indemnification
Provisions Against MHFA
As a part of the Compass Pointe Limited Partnership development in New Hope, four separate
documents were recorded against the Compass Pointe property ("Property") with the Hennepin
County Recorder's Office and Hennepin County Registrar of Title's Office:
1. Purchase and Development Agreement between New Hope Economic Development
Authority and Compass Pointe Limited Partnership recorded on July 1, 2014.
2. Planned United Development Site improvement Agreement recorded on July 1, 2014;
2. Assessment Agreement and Assessor's Certification recorded on July 1, 2014; and
3. Agreement to Maintain Underground Storm Water Storage System dated July 1 2014.
Compass Pointe is refinancing its existing mortgage with Minnesota Housing Finance Agency
("MHFA"). MHFA has requested that the EDA and the City enter into agreements by which
they agree that if MHFA ever acquires the Property by foreclosure, that the EDA and the City
will not enforce against the MHFA the release and indemnification covenants in Section 8.2 of
the Purchase and Development (`71F") Agreement or the hold harmless provisions in Section 9
of the PUD Agreement against MHFA. The above documents will all remain senior to the
MHFA mortgage except insofar as the EDA and City are agreeing not to enforce the hold
harmless and indemnification provisions therein against the MHFA.
Having reviewed the request with Steve Sondrall and Robert Deike, who handles the TIF work
for the City, this appears to be a reasonable request by MHFA. The respective agreements not to
enforce the hold harmless and indemnification provisions against MHFA will not affect the
EDA's and City's rights to enforce the terms of the above agreements against the developer
Compass Pointe, alter any zoning provisions regarding the Property or affect the stormwater
maintenance or assessment agreements. In summary, the request is not objectionable and we
recommend that the EDA and City sign the Non -Enforcement Agreements proposed by the
MHFA.
P:lAttomeylSAS11 Client Filesl2 City of New Hope199-21403 Compass Pointe West BroadwayWemo K McDonald 12-30-15.doe
ASSIGNMENT OF DEVELOPMENT AGREEMENT
THIS ASSIGNMENT OF DEVELOPMENT AGREEMENT (this "Assignment") is
effective as of the 31 st day of December, 2015, by and between Compass Pointe Limited
Partnership, a Minnesota limited partnership, with its offices located at 7500 781, Street West,
Edina, AN 55439 ("Borrower"), and the Minnesota Housing Finance Agency, a public body
corporate and politic of the State of Minnesota, with its offices located at 400 Sibley Street, Suite
300, St. Paul, Minnesota 55101-1998 ("Lender").
RECITALS
A. Borrower has entered into that certain Purchase and Development Agreement
with the New Hope Economic Development Authority, a public body politic and corporate under
the laws of the State of Minnesota (the "EDA"), dated as of July 1, 2014, (the "Development
Agreement") concerning certain real property more fully described in Exhibit A attached hereto.
B. The EDA has agreed to make certain payments to Borrower (the "TIF Payments")
in accordance with the terms and conditions of the Development Agreement.
C. Borrower wishes to assign its rights under the Development Agreement to Lender,
and Lender wishes to accept such assignment.
NOW, THEREFORE, in consideration of the sum of One Dollar ($1.00) and other good
and valuable consideration, Borrower sells, assigns, transfers, and sets over to Lender the
Development Agreement, together with all right and interest in the rights therein specified.
1. Borrower hereby irrevocably constitutes and appoints Lender as its attomey-in-fact
to enforce and satisfy the Development Agreement for and on behalf of and in the name of
Borrower or, at the option of Lender, in the name of Lender, with the same force and effect as
Borrower could do if this Assignment had not been made.
2. Borrower agrees that Lender does not assume any of the obligations or duties of
Borrower under or with respect to the Development Agreement unless and until Lender shall have
given the EDA written notice of such assumption.
3. Borrower represents and warrants that there are no outstanding prior assignments of
Borrower's interest in the Development Agreement, that it has the right to assign the Development
Agreement to Lender, that the Development Agreement is a valid, enforceable agreement, that none
of the parties is in default thereunder, and that all covenants, conditions and agreements have been
performed as required therein except those not due to be performed until after the date hereof.
Borrower agrees that no change in the terms thereof shall be valid without the written approval of
Lender. Borrower agrees not to assign, sell, pledge, mortgage or otherwise transfer or encumber its
interest in the Development Agreement so long as this Assignment is in effect.
Compass Pointe, New Hope D7582
HUD Risk -Sharing Program 1 011 6/20 1 5
Assignment of Development Agreement Execution Copy
(Ver, 11117110)
4. Borrower hereby agrees to pay all costs and expenses (including, without limitation,
reasonable attorney's fees) that Lender may incur in exercising any of its rights under this
Assignment.
IN WITNESS WHEREOF, Borrower has caused this Assignment of Development
Agreement to be executed as of the 31 st day of December, 2015.
CONSENTED AND AGREED TO BY:
Dated: /Z
Compass Pointe, New Hope
HUD Risk -Sharing Program
Assignment of Development Agreement
(Ver, 11117110)
COMPASS POINTE LIMITED PARTNERSHIP
a Minnesota limited partnership
By: Compass Pointe LLC
a Minnesota limited liability company
General Partner
By:.
. Michael Waldo
Vice President/Treasurer
NEW HOPE ECONOMIC DEVELOPMENT
AUTHORITY
a public body politic and corporate under the laws
of the State of Minnesota
Its Executive Director
D7582
10/16/2015
Execution Copy
Exhibit A
to
Assignment of Development Agreement
LEGAL DESCRIPTION
Lot 1, Block 1, Compass Pointe, according to the recorded plat thereof, Hennepin County,
Minnesota.
Hennepin County, Minnesota
Abstract Property
Torrens Certificate No.
Compass Pointe, New Hope D7582
HUD Risk -Sharing Program 3 10/16/2015
Assignment of Development Agreement
(Ver. 11117110) Execution Copy
ASSIGNMENT OF TAX INCREMENT FINANCING
THIS ASSIGNMENT OF TAX INCREMENT FINANCING (this "Assignment") is
effective as of the 31st day of December, 2015, by and between Compass Pointe Limited
Partnership, a Minnesota limited partnership, with its offices located at 7500 70' Street West,
Edina, MN 55439 ("Borrower"), and the Minnesota Housing Finance Agency, a public body
corporate and politic of the State of Minnesota, with its offices located at 400 Sibley Street, Suite
300, St. Paul, Minnesota 55101-1998 ("Lender").
RECITALS
A. Pursuant to that certain Minnesota Housing Finance Agency HUD Risk -Sharing
Program Mortgage Loan Commitment dated June 30, 2014 (the "HRS Loan Commitment"),
Lender is making a loan to Borrower in the original principal amount of $2,659,250.00 (the
"HRS Loan") for construction of a 68 unit multifamily facility, commonly known as Compass
Pointe and located in Hennepin, Minnesota, as legally described in the HRS Mortgage defined
herein (the "Property").
B. As evidence of the HRS Loan, Borrower is executing and delivering to Lender its
Minnesota Housing Finance Agency HUD Risk -Sharing Program Mortgage Note dated
December 31, 2015, in the original principal amount of the HRS Loan (the "HRS Note") and is
executing and delivering to Lender its Minnesota Housing Finance Agency HUD Risk -Sharing
Program Combination Mortgage, Security Agreement, and Fixture Financing Statement (the
"HRS Mortgage"), dated of even date therewith, and certain other loan and security documents
(collectively, the "HRS Loan Documents"),
C. The term of the HRS Loan shall be for a period of thirty (30) years after the date
on which the first payment to principal is due under the HRS Note, and the HRS Loan shall
mature and be due and payable in full on the first day of February, 2046 (or on any later date as
may be set forth in any amendment to the HRS Note).'
D. The Property is a part of Compass Pointe Tax Increment Financing District (the
"Tax Increment District") created by the City of New Hope, a Minnesota municipal corporation
and the New Hope Economic Development Authority, a public body politic and corporate under
the laws of the State of Minnesota (the "EDA").
E. Borrower and the EDA have entered into a certain Purchase and Development
Agreement dated July 1, 2014, (the "Development Agreement"), setting forth the EDA's
agreement to provide certain tax increment financing to Borrower in the form of reimbursements
to Borrower out of tax increments derived from the Property (the "Tax Increment Financing") as
consideration for undertaking certain improvements and maintaining certain low income housing
rental units.
F. In order to further
accordance with Section 3.2 of
Increment Revenue Note, in the
Compass Pointe, New Hope
(Ver. 11/17/10)
evidence the Tax Increment Financing, the EDA will, in
the Development. Agreement, issue to Borrower its Tax
principal amount of the lesser of $684,255.00 or the total
D7582
11/24/2015
Execution Copy
Reimbursable Costs, as described in Article III of the Development Agreement, actually incurred
by Borrower and approved by the EDA, in the form of Taxable Limited Revenue Tax Increment
Note attached to the Development Agreement as Exhibit B (the "TIF Note').
G. The TIF Note, the Development Agreement, and any and all amendments and
documents related thereto shall be referred to jointly herein as the "Tax Increment Financing
Documents".
H. As further security for repayment of the HRS Loan as evidenced by the HRS
Note, Borrower is executing and delivering to Lender this Assignment.
NOW, THEREFORE, in consideration of the above recitals, and for value received,
Borrower hereby transfers, assigns and grants a security interest in, pledges, and conveys to
Lender all right, title and interest of Borrower, if any, in and to the Tax Increment Financing and
the Tax Increment Financing Documents, provided that Lender does not assume any obligations
under the Tax Increment Financing Documents unless and until Lender assumes such obligation
in writing, together with all proceeds thereof and the immediate and continuing right to receive
and collect all amounts due or to become due thereunder and all other rights that may derive
from or accrue thereunder and the right to amend, cancel, modify, alter or surrender the Tax
Increment Financing Documents for the purpose of securing the following (collectively referred
to as the "Indebtedness Secured Hereby"):
One. Payment of the indebtedness evidenced by and performance of the terms and
conditions of the HRS Note;
Two. Payment of all other sums with interest thereon becoming due and payable to
Lender herein and in the HRS Note;
Three. Performance and discharge of each and every obligation, covenant and agreement
of Borrower herein and in the HRS Note, the HRS Mortgage and all other HRS Loan
Documents.
AND BORROWER COVENANTS, WARRANTS, REPRESENTS AND AGREES:
Warranties.
a. That Borrower is the true and lawful, absolute owner of the Tax Increment
Financing Documents free and clear from any and all liens, security interest,
encumbrances or other right, title or interest of any other person, firm or
corporation;
b. That Borrower has the full right and title to assign and pledge the Tax Increment
Financing and the Tax Increment Financing Documents; that there are no
outstanding claims, assignments or pledges thereof, other than as set forth herein;
that there are no existing defaults under the Tax Increment Financing Documents on
Compass Pointe, New Hope D7582
(Ver. 11117110) 2 11/248015
Execution Copy
the part of makers thereof, that Borrower has fully complied with and is not in
default with regard to the Tax Increment Financing Documents.
C. That the Tax Increment Financing Documents shall not be amended, altered,
cancelled, modified or surrendered without the prior written consent of Lender.
d. That Borrower is in full compliance with the terms of the Development Agreement.
e. That the unpaid balance due on the TIF Note upon issuance will be the lesser of
$654,255.00 or the total Reimbursable Costs, as described in Article III of the
Development Agreement, actually incurred by Borrower and approved by the EDA.
f. That the Development Agreement remains in full force and effect.
g. That there are no defenses, set -offs or counterclaims against or with regard to the
TIF Note or the Development Agreement or the indebtedness evidenced thereby.
The TIF Note, if executed in the form of Tax Increment Note attached to the
Development Agreement as Exhibit B, and the Development Agreement will be
valid and enforceable obligations and Borrower in accordance with their terms.
2. Performance under the Tax Increment Financing Documents. Borrower shall enforce or
secure the performance of each and every obligation of the EDA in the Tax Increment
Financing Documents; not borrow against, further pledge or assign any payments due
under the Tax Increment Financing Documents; not waive, excuse, condone or in any
manner release or discharge the EDA from its obligations under the Tax Increment
Financing Documents.
Present Pledge and Assignment.
a. This Assignment shall constitute a perfect, absolute and present pledge and
assignment in connection with which Borrower shall deliver to Lender the Tax
Increment Financing Documents endorsed and assigned to Lender. Borrower shall
execute and deliver to Lender the Allonge Endorsement, in substantially the same
form as Exhibit A attached hereto, on the date that the TIF Note is dated, issued,
and delivered to Borrower by the EDA in accordance with Section 3.2 of the
Development Agreement. Borrower shall execute and deliver to Lender the
Assignment of Development Agreement, in substantially the same form as Exhibit
B attached hereto, on the date hereof.
b. Borrower shall retain the right to collect the semi-annual payments under the TIF
Note unless and until an Event of Default has occurred hereunder.
C. From and after an Event of Default hereunder upon notice to the EDA, all payments
on the Tax Increment Financing shall be paid directly to Lender to be held and
applied by Lender as provided herein. Should Borrower thereafter receive any
Compass Pointe, New Hope D7582
(Ver. 11117/10) 3 11/24/2015
Execution Copy
payments on the Tax Increment Financing, Borrower shall immediately turn over
the same to Lender.
4. Seggi: A eement. This Agreement constitutes a Security Agreement under the
Uniform Commercial Code as adopted in Minnesota (the "Code") and shall be governed
by the Code.
5. Events of Default. An Event of Default shall occur hereunder upon the following:
a. A default occurs under any of the terms of any of the HRS Loan Documents, after
expiration of any applicable cure period thereunder; or
b. Failure to comply with or perform any of the terms, conditions or covenants of this
Assignment, and such failure shall continue for more than (30) days; or
C. Any representation or warranty made by Borrower herein shall be false, breached or
dishonored in any material manner.
G. Remedies. Upon or at any time after an Event of Default, Lender may declare all
Indebtedness Secured Hereby immediately due and payable and provide notice to the
EDA to thereafter make all payments on the Tax Increment Financing to Lender and
apply all sums held by Lender, including the Tax Increment Financing, to the
Indebtedness Secured Hereby and may, at its option, enforce the payment thereof and
exercise all of the rights of a holder of the Tax Increment Financing Documents. In
addition, upon the occurrence of an Event of Default, Lender may, without demand,
advertisement or notice of any kind (except such notice as may be required under the
Code) and all of which are, to the extent permitted by law, hereby expressly waived:
a. exercise any of the remedies available to a secured party under the Code;
b. proceed immediately to exercise each and all of the powers, rights, and privileges
reserved or granted to Lender under the HRS Note and the HRS Mortgage;
C. proceed to protect and enforce this Assignment by suits or proceedings or
otherwise, and for the enforcement of any other legal or equitable remedy available
to Lender,
If any notice is required to be given under the Code, such requirements for reasonable
notice shall be satisfied by giving at least (10) days' notice prior to the event or thing
giving rise to the requirement of notice.
7. Authorization to the EDA. The EDA is hereby irrevocably authorized and directed to
recognize the claims of Lender without investigating the reason for any action taken or
the validity of or the amount of Indebtedness Secured Hereby owing to Lender or the
existence of any Event of Default, and Borrower hereby irrevocably directs and
authorizes the EDA to pay exclusively to Lender or its assigns, from and after the date
Compass Pointe, New Hope
D7582
11/24/22015015
(Ver, 11117110) 4
Execution Copy
hereof, all sums due under the Tax Increment Financing Documents without the necessity
for a judicial determination that Lender is entitled to exercise its rights hereunder, and to
the extent that such sums are paid to Lender, Borrower agrees that the EDA shall have no
further liability to Borrower for the same. The sole signature of Lender shall be sufficient
for the exercise of any rights under this Assignment, and the sole receipt by Lender of
any sum paid by the EDA shall be in discharge and release of that portion of any amount
owed by the EDA.
8. Additional Instruments. Upon the request of Lender, Borrower shall, at its own expense,
execute and deliver all assignments, certificates, financing statements or other documents
and give fin Cher assurances and do all other acts and things as Lender may request to
perfect or to realize upon Lender's interest in the Tax Increment Financing and the Tax
Increment Financing Documents or to protect, enforce, or otherwise effect Lender's
rights and remedies. If Borrower is unable or unwilling to execute any such other
assignments, certificates, financing statements or other documents and to file financing
statements or other public notices or recordings with the appropriate authorities, as and
when reasonably requested by Lender, then. Borrower authorizes Lender to sign and
deliver as its true and lawful agent and attorney-in-fact, coupled with an interest, any
such assignment, certificate, financing statement or other document and to make any such
filing.
9. Amendment. The Tax Increment Financing Documents shall not be amended, altered,
cancelled, modified or surrendered without the prior written consent of Lender.
10. Release. Upon the earlier of the termination or expiration of the TIF Note or payment
and performance in full of the Indebtedness Secured Hereby, this Assignment shall be
released and shall thereafter become null and void and be of no fin-thher effect.
It. Successors and Assigns. This Assignment, and every covenant, agreement and provision
hereof, shall be binding upon Borrower and its successors and assigns and shall inure to
the benefit of Lender and its successors and assigns. Should Lender assign the HRS Loan
and the HRS Loan Documents to any other person or entity, Lender shall (i) cause such
person or entity to be bound by the terms and provisions hereof, and (ii) notify the EDA.
12. Governing Law. This Assignment is intended to be governed by the laws of the State of
Minnesota.
13. Validity Clause. The unenforceability or invalidity of any provision hereof shall not
render any other provision or provisions hereof unenforceable or invalid. Any provisions
found to be unenforceable shall be severable from this Assignment.
14, Notice. Notices that any party hereto may desire or may be required to give to any other
party shall be in writing and the mailing thereof by certified mail or equivalent, to the
respective party's address as set forth herein, or such other place as such party may by
notice in writing designate as its address shall constitute service of notice hereunder.
Compass Pointe, New Hope D7582
(Ver. 11/17/10) 5 11/24/2015
Execution Copy
15. Attorney's_ Fees. Borrower agrees to pay all costs of collection, including reasonable
attorney's fees, at any 'time paid or incurred by Lender in connection with the
enforcement of its rights hereunder.
IN WITNESS WHEREOF, the parties have caused this Assignment of Tax Increment
Financing to be executed as of the date first above written.
BORROWER:
COMPASS POINTE LIMITED PARTNERSHIP
a Minnesota limited partnership
By: Compass Pointe LLC
a Minnesota limited liability company
General Partner
'J' Michael Waldo
Vice President/Treasurer
LENDER:
MINNESOTA HOUSING FINANCE AGENCY
By:
sley J. Butler
Assistant Commissioner, Multifamily
Compass Pointe, New Hope
D7582
(Ver. 11117/10)
11/24/2p152015
Execution Copy
EXHIBIT B
ASSIGNMENT OF DEVELOPMENT AGREEMENT
THIS ASSIGNMENT OF DEVELOPMENT AGREEMENT (this "Assignment") is
effective as of the 31st day of December, 2015, by and between Compass Pointe Limited
Partnership, a Minnesota limited partnership, with its offices located at 7500 78'" Street West,
Edina., MN 55439 (`Borrower"), and the Minnesota Housing Finance Agency, a public body
corporate and politic of the State of Minnesota, with its offices located at 400 Sibley Street, Suite
300, St. Paul, Minnesota 55101-1998 ("Lender").
RECITALS
A. Borrower has entered into that certain Purchase and Development Agreement
with the New Hope Economic Development Authority, a public body politic and corporate under
the laws of the State of Minnesota (the "EDA"), dated as of July 1, 2014, (the "Development
Agreement") concerning certain real property more fully described in Exhibit A attached hereto.
B. The EDA has agreed to make certain payments to Borrower (the "TIF Payments")
in accordance with the terms and conditions of the Development Agreement.
C. Borrower wishes to assign its rights under the Development Agreement to Lender,
and Lender wishes to accept such assignment.
NOW, THEREFORE, in consideration of the sum of One Dollar ($1.00) and other good
and valuable consideration, Borrower sells, assigns, transfers, and sets over to Lender the
Development Agreement, together with all right and interest in the rights therein specified.
1. Borrower hereby irrevocably constitutes and appoints Lender as its attorney-in-fact
to enforce and satisfy the Development Agreement for and on behalf of and in the name of
Borrower or, at the option of Lender, in the name of Lender, with the same force and effect as
Borrower could do if this Assignment had not been made.
2. Borrower agrees that Lender does not assume any of the obligations or duties of
Borrower under or with respect to the Development Agreement unless and until Lender shall have
given the EDA written notice of such assumption.
3. Borrower represents and warrants that there are no outstanding prior assignments of
Borrower's interest in the Development Agreement, that it has the right to assign the Development
Agreement to Lender, that the Development Agreement is a valid, enforceable agreement, that none
of the parties is in default thereunder, and that all covenants, conditions and agreements have been
performed as required therein except those not due to be performed until after the date hereof.
Borrower agrees that no change in the terms thereof shall be valid without the written approval of
Lender. Borrower agrees not to assign, sell, pledge, mortgage or otherwise transfer or encumber its
interest in the Development Agreement so long as this Assignment is in effect.
Compass Pointe, New Hope D7582
HUD Risk -Sharing Program 1 10/16/2015
Assignment of Development Agreement Execution Copy
(Ver. 11/17110)
4. Borrower hereby agrees to pay all costs and expenses (including, without limitation,
reasonable attorney's fees) that Lender may incur in exercising any of its rights under this
Assignment.
IN WITNESS WHEREOF, Borrower has caused this Assignment of Development
Agreement to be executed as of the 31 st day of December, 2015.
CONSENTED AND AGREED TO BY:
Dated:
COMPASS POINTE LIMITED PARTNERSHIP
a Minnesota limited partnership
By: Compass Pointe LLC
a Minnesota limited liability company
General Partner
J. Michael Waldo
Vice President/Treasurer
NEW HOPE ECONOMIC DEVELOPMENT
AUTHORITY
a public body politic and corporate under the laws
of the State of Minnesota
By:
Its President
By:
Its Executive Director
Compass Pointe, New Hope D7582
HUD lUsk-Sharing Program 2 10/16/2015
Assignment of Development Agreement
(Ver, 11117/10) Execution Copy
Exhibit A
to
Assignment of Development Agreement
LEGAL DESCRIPTION
Lot 1, Block 1, Compass Pointe, according to the recorded plat thereof, Hennepin County,
Minnesota.
Hennepin County, Minnesota
Abstract Property
Torrens Certificate No.
Compass Pointe, New Hope D7582
HUD Risk -Sharing Program 3 10/16/2015.
Assignment of Development Agreement Execution Copy
(Ver. 11117110)
CONSENT OF THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
The New Hope Economic Development Authority, a public body politic and corporate
under the laws of the State of Minnesota, with its offices located at City Hall, 4401 Xylon
Avenue North, New Hope, MN 55428 (the "EDA"), acknowledges that it has reviewed the
Assignment of Tax Increment Financing entered into by and between Compass Pointe Limited
Partnership, a Minnesota limited partnership ("Borrower"), and the Minnesota Housing Finance
Agency, a public body corporate and politic of the State of Minnesota ("Lender"), dated
December 31, 2015, to which this Consent is attached, the Assignment of Development
Agreement by and between Borrower and Lender dated December 31, 2015, and the form of
Allonge Endorsement attached to the Assignment of Tax Increment Financing as Exhibit A
(collectively, the "Assignment"). Subject to the provisions of paragraph 2 below, the EDA
consents to the terms of the Assignment and to the assignment of the Tax Increment Financing to
Lender and to a subsequent assignment by Lender to its successors or assigns. The EDA agrees
from and after the date of the Assignment, upon request by Lender or its successors and assigns,
to make all payments on the Tax Increment Financing described in the Assignment to such
requesting party at such address as the EDA shall be directed in writing.
The EDA further represents and warrants to Lender:
a. That it has received good and valuable consideration for the Development
Agreement.
b. That the unpaid balance due on the TIF Note (as defined in the Assignment) upon
issuance will be the lesser of $684,255.00 or the total Reimbursable Costs, as
described in Article III of the Development Agreement, actually incurred by
Borrower and approved by the EDA.
C. To the actual knowledge of the undersigned, Borrower is in full compliance with
the terms of the Development Agreement, and the Development Agreement
remains in full force and effect.
d. To the actual knowledge of the undersigned, there are no current defenses, set-
offs or counterclaims against or with regard to the TIF Note or the Development
Agreement or the indebtedness evidenced thereby. The TIF Note, if executed in
the form of Tax Increment Note attached to the Development Agreement as
Exhibit B, and the Development Agreement will be valid and enforceable
obligations of the EDA in accordance with their terms.
2. This Consent shall not in any way deprive the EDA or limit any of the EDA's rights or
remedies under the Development Agreement and shall not relieve Borrower of any of its
obligations under the Development Agreement. This Consent is conditioned on Lender or any
transferee or purchaser from Lender assuming in writing the remaining unfulfilled obligations of
Borrower under the Development Agreement.
Compass Pointe, New Hope D7582
(Ver. 11117/10) 9 11/24/2015
Execution Copy
3, Notwithstanding the provisions of the Development Agreement, the EDA agrees that it
will not exercise its remedies under the Development Agreement upon the occurrence of an
Event of Default under Article IX of the Development Agreement prior to providing notice of
the Event of Default and an opportunity to cure to Lender.
Dated: !. S
NEW HOPE ECONOMIC DEVELOPMENT
AUTHORITY
a public body politic and corporate under the laws
of the State of Minnesota
Its Executive Director
Compass Pointe, New Hope D7592
(Ver, 11117110) 10 11/24/2015
Execution Copy
ALLONGE ENDORSEMENT TO
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN NEW HOPE ECONOMIC DEVELOPMENT AUTHOTAXABLE LIMTr>�n REVENUE TAX INCREMENT(COMPASS POINTE LIIVIITED PARTNERSHIPET;E(0'?
FOR VALUE RECEIVED, Compass Pointe Limited Partnership, a Minnesota limited partnership ("Owner" ),
endorses, assigns and transfers to the Minnesota Housing Finance Agency, a public body corporate and politic of the State
of Minnesota ("MHFA"), all right, title and interest in and to the following described "TIF Note":
United States of America State of Minnesota County of Hennepin New Hope Economic Development
Authority Taxable Limited Revenue Tax Increment Note (Compass Pointe Limited Partnership), in the
original principal amount of $684,255.00, dated October 1, 2015, executed by the New Hope Economic
Development Authority, as Maker, to Compass Pointe Limited Partnership, a Minnesota limited
partnership, as Holder.
Notwithstanding the foregoing, Owner -shall retain the right to collect the payments due under the TIF Note unless and
until an event of default has occurred under any of those certain loan documents evidencing a loan in the amount of
$2,659,250.00. from MHFA to Owner (a "Default"). Upon notice from MHFA to the New Hope Economic Development
Authority that a Default has occurred, all payments due under the Note shall be paid directly to MHFA.
Dated at -St. Paul, Minnesota, this 31st day of December, 2015.
THIS ALLONGE IS TO BE AFFIXED
TO THE NOTE DESCRIBED ABOVE
COMPASS POINTE LIMITED PARTNERSHIP
a Minnesota limited partnership
By: Compass Pointe LLC
a Minnesota limited li
General Parbw e
J. Michael Waldo
Vice PresidentiTreasurer
CONSENTE AND AGREED TO BY:
NEW Hq"FCONPAUGDEVELOPMENT AUTHORITY
Iti
Its Executive
Compass Pointe, New Hope D7582
HUD Risk -Sharing Program 11/2412015
AlJonge Endorsement Execudon Copy
Request for Action
January 11, 2016
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Aaron Chirpich, CD Specialist
Agenda Section
EDA
Item Number
5
Agenda Title
Resolution approving contract with Scott's Tree Service for tree removal and stump grinding at 6065
Louisiana Avenue North (Improvement project no. 973)
Requested Action
Staff requests approval of a resolution awarding a contract for the removal of trees and stump grinding
at 6065 Louisiana Avenue North, to the low and responsible bidder, Scott's Tree Service in the amount of
$6,000.
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 City has recently acquired the single family home located at 6065 Louisiana Ave N, as part of the
Scattered Site Housing Program. The EDA has directed staff to take the necessary steps in preparing the
home for demolition in order to facilitate the creation of two buildable lots. As part of the redevelopment
project, the City Forester has identified all trees on the property that should be removed. Staff has received
two quotes for tree removal and stump grinding. The bid results are as follows:
Matt's Tree Service, Inc. $7,080.48
Scott's Tree Service $6,000
Funding
EDA funds will be used to pay for this project on the front end. Following the sale of the vacant lot, the EDA
will be reimbursed by Hennepin County with Community Development Block Grant funds for all costs
associated with tree removal and stump grinding.
Attachments
• Resolution
• Bids Received
I:\RFA\COMM DEV1Development\6065 Louisiana Award Tree Removal Contract Project 973.docx
EDA RESOLUTION NO. 16 -
RESOLUTION APPROVING CONTRACT WITH SCOTT'S TREE SERVICE
FOR TREEE REMOVAL AND STUMP GRINDING
AT 6065 LOUISIANA AVENUE NORTH
(IMPROVEMENT PROTECT NO. 973)
BE IT RESOLVED by the Economic Development Authority in and for the City of New
Hope as follows:
WHEREAS, the Economic Development Authority in and for the City of New Hope
("EDA") purchased certain real property located at 6065 Louisiana 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 the Property's blighted
condition by performing an environmental cleanup of the Property to be followed by the
demolition of the buildings on the Property and site grading of the Property; and
WHEREAS, Scott's Tree Service submitted a proposal that meets all of the Project
Specifications, and is the low bid; and
WHEREAS, it is in the best interests of the EDA to enter into a contract with Scott's
Tree Service for the purpose of performing the Work; and
WHEREAS, City staff is hereby seeking approval from the EDA of the selection of
Scott's Tree Service as the duly qualified contractor to perform the Work.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of New Hope as follows:
1. That the above recitals are incorporated herein by reference.
2. That the selection of Scott's Tree Service as the Contractor to complete the
removal of trees and stump grinding pursuant to the Project Specifications is
approved, it being in the best interest. of the City to prepare the Property for
redevelopment in accordance with the City's scattered site housing program and
policy.
Attest:
3. That the payment of $6,000 to Scott's Tree Service to perform the Work is hereby
approved.
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 removal of trees and stump grinding
work located at the Property in accordance with the contract to be prepared by the
City Attorney.
Dated the 11th day of January, 2016.
Kirk McDonald, Executive Director
Kathi Hemken, President
f
SCOTT'S TREE
f
ERVICE
ESTIMATE / CONTRACT / INVOICE
25 Years Experience
DATE:
NAME:
www.scottsmntreeservice.com CITY
Mail to: 763-245-3184 1 CELL
Scott's Tree Service MN 4564A E-MAIL:
8768 Cottonwood Lane N
Maple Grove, MN 55369
PRUNING IN ACCORDANCE WITH ANSI A300 STANDARDS
1. DEADWOOD: 2. TITIN: 3. RAISE: 4. CUTBACK: 5. COMPLETE
For more Information see www.]SA-arbor.com
Equipment:
IF� Log Loader F]Bucket Truck ❑ Chip Truck n Climber
11:1 Chipper F] Swinger O Crane 1:1 Ladder
ZIP
LZ,..�
. , .,
Cut down Tree or Shrub (Leave Debris)
Remove from structure (Leave Debris)
HAUL AWAY Tree or Shrub Debris
Stump Grinding/Chipping
HAUL AWAY Stump Debris
t2c(05 'Ypcw'u�� aAtk n&4k- I /r--,
p, n+ ✓S
WE ACCEPT VISA, MASTERCARD & DISCOVER. NO CMICtLLATIONS OR REFUNDS, SEE REVERSE FOR LEIN NOTICE, RIGHTS, CONDITIONS AND AGREEMENTS.
AVAUMCE OF .6 IIWe accept this contract in its entirety as fair value for work herein described. I/We have read and understand all
Notices, Payment, Fee, Cast, and Change clauses on reverse. IIWe will deposit 10% of the Contracrs value, which I have included with this Contract.
NO CANCiEUATIONS OR REFUNDS.
COST $
Submitted by: .r- - SALES TAX $
Customer
TOTAL $
Dais Customer Dates
WHITE -- ORIGINAL YELLOW -- RECEIPT PINK -- ES77MATE
'; "" AL 1F 7 1,LRI .a IQ ,' E I i
Working to preserve our natural environment
LICENSED & INSURED
Office (612) 706-8210
Fax (612) 789-0933
Web: www rnattstreeservice.us
mattstreeserviceinc@gmail.com
2751 Hennepin Avenue South #72 o Minneapolis, MN 55408
Location
Date 112- 1 1 C
Name' a4.�� akkialLki
Address '
city N E4. Atke St MA zip
Phone Number (Day); c c
(Evening)
(FAX)
E-mail
Ab
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Elect �Phone-_Cable_Ladder Bucket—Swinger_Crane VAnch_
Cil NN
a&. rfjo@Ct. r6o -kb ie_.rn» •tom
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ISA Certified Arborists on Staff (0631 Sic
Amount
Cop ti:(, cc.-, s
0?0, 9
Proposal Acceptance
We are fully Insured; for a cerflfleate of liability and work comp can 962.893 -MB
Mad's Tree Servioe 1101 not be responsible for underground sprinkler damage or Rnes unless notified first. We try to avoid yard damage as much as possible, but eome will
happen. We will not be held responsible for normal damage unless agreements made oBenvise are reached.
On removals, stumps will be cut as dose as possible to ground unless foreign objects are in it rr than they win be Cat as clew to abject as pontiff,
' STUMPS WILL BE BILLED SEPARATELY FROM TREE WORIL BILL FOR COMPLETED TM'MAVORK MOV BE PAID WN COMPLETION.
Storm related work: M0% Tree Service has 48 hours from signed approval of work btearpkeis job, A $W in will be charged for any cancegaYsn dialing that period. Any
'awe work not DOCUMENTED ON ESTIMATE will Incur a minlmwn charge of $1851 or AWEI EIT WITH'MANS TREE SERVICE REPRESENTATIVE AND CLIENT.
Subtotal
$
Any lobs exceeding
Tex •1 :.,a.., - ._ 'z, v-
$
S90U.04 require
Wal
$
a 113 deposit
Dogra Payment
S
Total Due Upon Comp.
$
Cop ti:(, cc.-, s
0?0, 9
Proposal Acceptance
We are fully Insured; for a cerflfleate of liability and work comp can 962.893 -MB
Mad's Tree Servioe 1101 not be responsible for underground sprinkler damage or Rnes unless notified first. We try to avoid yard damage as much as possible, but eome will
happen. We will not be held responsible for normal damage unless agreements made oBenvise are reached.
On removals, stumps will be cut as dose as possible to ground unless foreign objects are in it rr than they win be Cat as clew to abject as pontiff,
' STUMPS WILL BE BILLED SEPARATELY FROM TREE WORIL BILL FOR COMPLETED TM'MAVORK MOV BE PAID WN COMPLETION.
Storm related work: M0% Tree Service has 48 hours from signed approval of work btearpkeis job, A $W in will be charged for any cancegaYsn dialing that period. Any
'awe work not DOCUMENTED ON ESTIMATE will Incur a minlmwn charge of $1851 or AWEI EIT WITH'MANS TREE SERVICE REPRESENTATIVE AND CLIENT.
Agenda Title
Request for Action
January 11, 2016
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Aaron Chirpich, CD Specialist
Agenda Section
EDA
Item Number
6
Resolution approving contract with Robinson Environmental Inc, for hazardous material abatement at 6065
Louisiana Avenue North (improvement project no. 973)
Requested Action
Staff requests approval of a resolution awarding a contract for the abatement of hazardous materials at
6065 Louisiana Avenue North, to the low and responsible bidder, Robinson Environmental, Inc in the
amount of $6,300.
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 City has recently acquired the single family home located at 6065 Louisiana Ave N, as part of the
Scattered Site Housing Program. The Council has directed staff to take the necessary steps in preparing the
home for demolition in order to facilitate the creation of two buildable lots. Recently, a demolition survey
was completed on the home in order to identify any hazardous materials located on the property. Before the
home can be torn down, all hazardous materials identified in the demolition survey must be removed.
Requests for hazardous material abatement quotes were sent to three contractors. The bid results are as
follows:
Aztec Asbestos Removal, LLC $12,550
Twin Cities Abatement Technologies, Inc $12,500
• Robinson Environmental, Inc $6,300
Funding
EDA funds will be used to pay for this project on the front end. Following the sale of the vacant lot, the EDA
will be reimbursed by Hennepin County with Community Development Block Grant funds for all costs
associated with hazardous material abatement.
Attachments
• Resolution
• Bids Received
• Demolition Survey (specifications)
I:\ RFA\ COMM DEV\ Development\6065 Louisiana Approve Asbestos Removal Contract Project 973.docx
EDA RESOLUTION NO. 16 -
RESOLUTION APPROVING CONTRACT WITH ROBINSON
ENVIRONMENTAL, INC FOR HAZARDOUS MATERIAL
ABATEMENT AT 6065 LOUISIANA AVENUE NORTH
(IMPROVEMENT PROJECT NO. 973)
BE IT RESOLVED by the Economic Development Authority in and for the City of New
Hope as follows:
WHEREAS, the Economic Development Authority in and for City of New Hope
("EDA") purchased certain real property located at 6065 Louisiana 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 the Property's blighted
condition by performing an environmental cleanup of the Property to be followed by the
demolition of the buildings on the Property and site grading of the Property; and
WHEREAS, Robinson Environmental, Inc submitted a proposal that meets all of the
project specifications, and is the low bid; and
WHEREAS, it is in the best interests of the EDA to enter into a contract with Robinson
Environmental, Inc for the purpose of performing the Work; and
WHEREAS, City staff is hereby seeking approval from the EDA of the selection of
Robinson Environmental, Inc as the duly qualified contractor to perform the Work.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of New Hope as follows:
1. That the above recitals are incorporated herein by reference.
2. That selection of Robinson Environmental, Inc as the Contractor to complete the
abatement of all hazardous materials pursuant to the project specifications is
approved, it being in the best interest of the City to prepare the Property for
redevelopment in accordance with the City's scattered site housing program and
policy
Attest:
3. That the payment of $6,300 to Robinson Environmental, Inc to perform the Work
is hereby approved.
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 abatement of hazardous materials
located at the Property in accordance with the contract to be prepared by the City
Attorney.
Dated the 11th day of January, 2016.
Kirk McDonald, Executive Director
Kathi Hemken, President
Chirpich Aaron
From: Usertim695@aol.com
Sent: Friday, December 11, 2015 4.28 PM
To: Chirpich Aaron
Subject: (no subject)
Robinson Environmental Inc.
4716 67th Ave North
Brooklyn Center, MN 55429
Phone (763) 566-4242
Fax (763) 566-4681
Date: 12-11-2015
Proposal for: City of New Hope
Attn: Aaron Chirpich
From: Robinson Environmental Inc.
Robinson Environmental will perform Asbestos abatement at 6065 Louisiana Ave. N. New Hope
MN. Following all Minnesota Department of Health and MPGA rules and regulations.
Robinson Environmental will furnish all labor, materials equipment, and Insurance for project.
Scope of work: Removal of asbestos from demolition survey.
PRICE: 3050.00
Removal of vermiculite Price: 3,000.00
Removal of hazardous materials Price: 250.00
Timothy Robinson
Phone: 651-775-7723 T.C.A.T. -N—C. -Pax: 651-771-1360
Twin Cities Abatement Technologies, Inc.
I 100 North Concord Street
South St. Paul MN. 55075
PROPOSAL
Proposal Submitted To:
} -e vAl
a .�
Job Address:
P 1 AJ
T'C.A.T. W. proposes to provide the labor and supplies necessary to complate the following scope of work:
4-1 'S n5 --P- 0 2 _ 'k -VA A (—lei a s ! c J° 5 L, VV -c
- rJMie a. ff-#
i
* General and Professional liability hLunu amce * Strict adherence to State and Federal Tgulations * Notification and permit
fee to M. Dept. of Health * Waste disposed of in an approved landfill * Waste Manifest and any air test results supplied to
customer * T.C.A.T. INC. assumes no responsibility for any damages incurred from tape and/or spry glue * Client is
responsible for all electrical and water supplies and associated costs.
All proposed services and supplies are guaranteed to be as stated above
Additional Bids, if any: $��
ia)
Payment is due in lull upon completion of the project. Any changes in thewritten scope of the project that in .extra
costs will be added to the original estimate. T.C.A.T. INC. shall inform the client, in writing, prior to the completion of the
project. All agreements are conditional upon any acokk ars or delays beyond our control. T.C.A.T. INC. is not responsible for
damages to pipes or other structures due to aging and/or corrosion. A $ 50-00 fee will be added to the balance of the project
cost for all returned checks. A 15 % fte can be added to the project cost to all payments received aft the due date.
Proposal Submitted By: I P J Date: la -3- I -r
AimnkLee. ProggWThe above prices, terms and conditions are satisfactory ana are hemby accepted. IIWe authorize T.C.A.T. INC. to perform the
work as specified above. Paymew will be made as descd'bed above.
Customer Name;
Customer Signature: Date:
Aztec Asbestos Removal LLC
36332 nd Ave S.
Minneapolis MN 55409
aztecasbestos@vahoo.com
612-408-5595
Name: Aaron Chirpich / City of New Hope.
Address: 6065 Louisiana Ave N.
New Hope, MN 55428
Phone: 763-531-5114
Email: achirpich@c.i.new-hope.mn.us
12/10/15
We at Aztec Asbestos Removal are pleased to furnish you with this proposal for your upcoming Asbestos
related project.
My price is $ 12,550.00 for the removal of the following asbestos related material at the above listed
address.
600sgft of vermiculite insulation in attic and under 9x9 tiles in 2"d level. $ 5,850.00
30sgft of Linoleum in main level bathroom. $ 550.00
$ 125sgft of Linoleum in main level kitchen. $ 1,250.00
• 375sgft of 9x9 Tiles in 2"d level floor. $ 1,950
• 40sgft of transite panels in basement level mechanical room. $ 650.00
Asbestos flue patch in basement mechanical room. $ 180.00
650sgft of exterior transite siding on garage # 2. $1,800.00
Misc.
* 8 smoke detectors $ 40.00
i 5 thermostats $ 30.00
• 3 refrigerators $ 90.00
• 2 stoves $ 40.00
1 boiler $ 40.00
4 7 fluorescent fixtures $ 50.00
0
gstrom
nalytical
Ir1o.
Aaron Chirpich
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
11/18/2015
6065 Louisiana Av.
New Nope, MIS
Dear Aaron:
5001 Cedar Lake Rd.
St. Louis Park, MN 35416
952-252-0405 office
952-252-0407 fax
Darrell Potocnik (Al 2219), a representative of Angstrom Analytical, Inc., visited the above referenced
property on November 18, 2015 for the purpose of conducting an asbestos demolition inspection. We are
prepared to state that there are friable, category I and category II non -friable asbestos containing building
materials contained in or on the fabric of the structure. The vermiculite insulation In the attic contained < 1% tremolite,
The following materials tested positive for the presence of asbestos:
Iinoleums
9x9 floor tile
flue patch
transits panels
transite siding
The friable materials are;
2. Approximately 30.40 square feet of asbestos containing gray linoleum In a main level bathroom.
2. Approximately 100-125 square feet of asbestos containing green linoleum in the kitchen.
3. Approximately 30-40 square feet of asbestos containing brown linoleum a main level bathroom.
The non -friable materials are:
Category l:
4. Approximately 375-400 square feet of asbestos containing brown 9x9 floor the on the upper level.
Category li:
5. Approximately 1 each of asbestos containing flue patch in the basement mechanical room.
6. Approximately 40-50sq.uaxe feet of asbestos containing transite panels in the mechanical room.
7. Approximately 600-650 square feet of asbestos containing transite siding on garage #2,
No samples other than from the fabric of the building that Is planned for demolition were taken or analyzed
and this report only relates only to 6065 Louisiana Ave. N. One hundred and two samples of suspect building
were collected and analyzed in our laboratory by Polarized Light Microscopy. Please see attached notes.
During the course of the survey other hazardous materials were noted:
Misc.
8 smoke detectors
5 thermostats
3 refrigerators
2 stoves
2 washers/dryers
3 boiler
7 fluorescent fixtures
2 garage door openers
1 water heater
All friable and category 11 non -friable materials need to be removed, per applicable regulations, prior to
any demolition efforts. Category I non -friable materials are allowed to be left in place for the demolition.
However, the landfill must be made aware that the demolition debris will contain (minimal amounts of)
category I non -friable asbestos containing material and is subject to the MPCA's rules and regulations
pertinent to the demolition efforts (notifications, etc,). This survey should not be interpreted as a bidding
document or as an asbestos project design. It is incumbent upon the contractor to verify quantities.
Quantification of materials Identified In this Inspection report are approximations and based on observed
quantities. Additional amounts of material may be present under floor, above ceilings and Inside wall
cavities and not fully quantified. For example, thermal system Insulation indentifled in a basement may
also exist Inside wall cavities.
If you have any questions, please call us at the number above.
Sincerely, /
Darrell Potocnik
Angstrom Analytical, Inc.
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5001 Cedar Lake Rd.
Atromgs5t. Louis Park, MN 55416
952-252-0405 office
nr'1lyt(oal 952-252-0407 fax
inc.
Analysis of Sulk Samples for Asbestos Using Polarized Light Microscopy (PLM)
Aaron Chlrplch
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re,. 6065 Louisiana Avenue North
Number of Samples; 102
Methods and Definitions
The submitted samples were analyzed using the EPA Interim Method #600/M4-82-020 (polarized light
microscopy with dispersion staining). The method defines on asbestos containing material as one that
contains greater than 1% asbestos by weight and asbestos Is defined as the fibrous forms of serpentine
and certain amphiboles. While the fibrous and non-fibrous forms of minerals are discernible microscopically
In hand specimens, the distinction between them Is not clear on a microscopic level, especially after processing
or manufacturing. Fibrous amphlboles are generally those whose mean aspect ratios (length over width)
under the microscope are approximately >10, non flbrous amphiboles are generally those whose mean
aspect ratios are approximately <6. During analysis, morphology and an estimate of mean aspect ratio
are used to assign a given mineral fiber population to fibrous and non-fibrous categories. That non-fibrous
amphlboles are not reported as asbestos Is consistent with mineralogical definitions, but does not imply that
nonflbrous amphlboles are not hazardous. Airborne concentrations of them may be regulated by OSHA under
certain circumstances. 77?e type of dispersion staining used Is generally phase contrast although central stop
dispersion staining may also be used.
Percentage Reporting
The percentage of each fiber type present was determined using volume percents estimated from stereoscopic
examination, projected area percents from mounted slide examination and percents from pomparlson to weight
percent standards. Such estimotlons are suitable for most samples, but do have large error ranges. Errors are
estimated to be 100 relative percent uncertainty for percentage estimates under 10% ranging down to as little
as 10 relative percent uncertainty for percentage estimates greater than 50%. Friable samples which have been
estimated by the above methods to contain less than 10% asbestos can be point counted, according to the EPA
FPA interim Methods, as required by NESHAPS. In low percentage samples, point counting may produce false
negatives or positives, due to the small number of points counted. For samples consisting of more that one
apparent type of material or foyer, the percentage of each fiber type of material of layer Is determined and
reported separately, an overall average for the sample of each fiber type Is then calculated. The reported friability
of a sample refers to that friability observed In the condition analyzed (broken, crushed, etc.), and is not to be
substituted for an on-site assessment of friability. Each Angstrom Analytical lab report relates only to the sample
tested and may not due to the sampling process be representative of the material sampled.
i
rte.-./ A- J
Darrell Potocnik, Angstrom Analytical,
November 18, 2015
Full Service Laboratory and on-site Industrial Hygiene Services for the Hazardous Materials Abatement Industry