091216 EDA Meeting Packet
EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday, September 12, 2016
Commences upon adjournment of the City Council Meeting
Agenda
President Kathi Hemken
Commissioner John Elder
Commissioner Andy Hoffe
Commissioner Eric Lammle
Commissioner Jonathan London
1. Call to order – EDA Meeting of September 12, 2016
2. Roll call
3. Approval of Minutes:
August 8, 2016
4. Resolution authorizing the proposed levy of a special benefit levy pursuant to
Minnesota Statutes, Section 469.033, subdivision 6 and approval of a preliminary
budget for fiscal year 2017
5. Public hearing: Resolution approving purchase and redevelopment agreement
with Great Buy Homes, Inc. for the sale of 6065 and 6067 Louisiana Avenue North
(improvement project no. 973)
6. Adjournment
EDA Meeting
Page 1 August 8, 2016
CITY OF NEW HOPE
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes August 8, 2016
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority
to order at 7:46 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
Valerie Leone, City Clerk
Jeff Sargent, Director of Community Development
Steve Sondrall, City Attorney
Stacy Woods, Assistant City Attorney
APPROVAL OF
MINUTES
Item 3
Motion was made by Commissioner Elder, seconded by Commissioner Hoffe,
to approve the minutes of July 25, 2016. All present voted in favor. Motion
carried.
IMP. PROJECT 986
Item 4
President Hemken introduced for discussion EDA Item 4, Resolution
approving contract with Nitti Rolloff Services, Inc. for demolition of site
improvements, utility work, tree removal, well sealing, and site grading of 5400
Yukon Avenue North (improvement project no. 986).
Mr. Jeff Sargent, director of community development, stated staff recommends
the EDA approve a contract with Nitti Rolloff Services for demotion of site
improvements, utility work, tree removal, well sealing, and site grading at 5400
Yukon Avenue North. He stated two bids were received and the low quote was
received from Nitti Rolloff Services for $18,748. The city has worked with the
contractor in the past with good experience. Mr. Sargent stated EDA funds will
be used for the project and the EDA will be reimbursed with CDBG funds at a
later date.
Mr. Sargent reported since 2015 the city has purchased seven properties as part
of the scattered site improvement program resulting in ten buildable lots.
RESOLUTION
2016‐18
Item 4
Commissioner London introduced the following resolution and moved its
adoption “RESOLUTION APPROVING CONTRACT WITH NITTI
ROLLOFF SERVICES, INC. FOR DEMOLITION OF SITE
IMPROVEMENTS, UTILITY WORK, TREE REMOVAL, WELL SEALING,
AND SITE GRADING OF 5400 YUKON AVENUE NORTH
(IMPROVEMENT PROJECT NO. 986)”. The motion for the adoption of the
EDA Meeting
Page 2 August 8, 2016
foregoing resolution was seconded by Commissioner Lammle, 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
Hoffe, to adjourn the meeting. All present voted in favor. Motion carried. The
New Hope EDA adjourned at 7:52 p.m.
Respectfully submitted,
Valerie Leone, City Clerk
I:\RFA\FINANCE\Budget\2017\q‐EDA property tax levy 9.12.16.docx
Request for Action
September 12, 2016
Approved by: Kirk McDonald, City Manager
Originating Department: City Manager
By: Kirk McDonald, City Manager
Agenda Title
Resolution authorizing the proposed levy of a special benefit levy pursuant to Minnesota Statutes, Section
469.033, subdivision 6 and approval of a preliminary budget for fiscal year 2017
Requested Action
Staff requests the EDA to adopt the attached resolution establishing the EDA levy for the 2017 budget.
Background
Historically the amount of the EDA levy was included in the city’s proposed levy. At AEM’s
recommendation, beginning with the 2015 budget year, a separate resolution has been adopted by the EDA
for the EDA levy. The amount of the EDA levy was at $85,000 for several years and increased to $150,000 in
year 2014. A $50,000 increase in the EDA levy is recommended for 2017.
2013 ‐ $85,000
2014 ‐ $150,000 (an increase of $65,000 to fund the CD assistant position)
2015 ‐ $150,000
2016 ‐ $150,000
2017 ‐ $200,000 (an increase of $50,000 for increased funding to scattered site housing program)
Attachment
EDA Resolution
Proposed Tax Levy
Agenda Section
EDA
Item Number
4
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2016‐____
RESOLUTION AUTHORIZING THE PROPOSED LEVY OF
A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES,
SECTION 469.033, SUBDIVISION 6 AND APPROVAL
OF A PRELIMINARY BUDGET FOR FISCAL YEAR 2017
WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.108 (the “EDA Act”), the City Council of
the City of New Hope created the City of New Hope Economic Development Authority (the “Authority”); and
WHEREAS, pursuant to the EDA Act, the City Council granted to the Authority all of the powers and duties
of a housing and redevelopment authority under the provisions of the Minnesota Statues, Sections 469.001 to
469.047 (the “HRA Act”); and
WHEREAS, Section 469.033, subdivision 6, of the HRA Act permits the Authority to levy and collect a special
benefit levy of up to .0185 percent of estimated market value in the City upon all taxable real property within
the City; and
WHEREAS, the Authority desires to levy a special benefit levy in the amount of up to .0185 percent estimated
market value of the City for taxes payable in 2017; and
WHEREAS, pursuant to Minnesota Statues, Section 275.065, the Authority is required to adopt a proposed
budget and a proposed tax levy and submit the same to the County Auditor by September 15; and
WHEREAS, the Authority has before it 2017 the amount of the proposed levy for collection in 2017, subject to
any adjustments in the budget as finally approved prior to certification of the final special benefit levy.
NOW THEREFORE BE IT RESOLVED by the Board of Commissioners of the City of New Hope Economic
Development Authority:
1. The proposed budget of $200,000 for the operations of the Authority in fiscal year 2017, as presented for
consideration by the City Council, is hereby in all respects approved, subject to final approval by the
Authority before certification of the tax levy under Minnesota Statutes, Section 275.07.
2. Staff of the Authority are hereby authorized and directed to file the proposed budget with the City in
accordance with Minnesota Statues, Section 469.033, Subdivision 6.
3. The proposed special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, is
hereby approved in maximum amount equal to .0185 percent of estimated market value in the City of
New Hope, currently estimated to be $1,520,033,519 with respect to taxes payable in calendar year 2016,
subject to final approval by the Authority before certification of the special benefit levy pursuant to
Minnesota Statues, Section 275.07.
4. Staff of the Authority are hereby authorized and directed to seek the approval by resolution of the City
Council of the levy of special benefit taxes payable in 2017 and to take such other actions as are necessary
to bring before the Board the final budget and levy to be sent to the county auditor by December 28, 2016
(five working days after December 20, 2016).
Adopted by the Economic Development Authority on September 12, 2016.
___________________________________________
President
Attest:
Executive Director
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I:\RFA\COMM DEV\Development\Q & R ‐ Sale of Lots at 6065 and 6067 Louisiana 9‐12‐16 Project 973.docx
Request for Action
September 12, 2016
Approved by: Kirk McDonald, City Manager
Originating Department: Community Development
By: Aaron Chirpich, CD Specialist
Agenda Title
Public Hearing: Resolution approving purchase and redevelopment agreement with Great Buy Homes, Inc
for the sale of 6065 and 6067 Louisiana Avenue North (improvement project no. 973).
Requested Action
Staff requests that the EDA approve a resolution approving the purchase and redevelopment agreement for
the sale of the EDA‐owned lots located at 6065 and 6067 Louisiana Avenue North. Staff recommends that the
EDA receive the staff presentation, open the public hearing for comments, pass a motion closing the public
hearing and then pass a motion approving the resolution.
Policy/Past Practice
Proposals for the redevelopment of EDA‐owned scattered site lots are reviewed by the Council prior to
executing a contract with the preferred buyer/builder. Once a builder has been selected, it is a common
practice for staff to seek formal approval of purchase and redevelopment agreements to complete the sale of
EDA‐ owned lots.
Background
In mid‐April, RFPs were sent to 20 builders marketing the lots located at 6065 and 6067 Louisiana Avenue.
The non‐negotiable sales price was set at $55,000 per lot ($110,000 total). The EDA received three proposals
from the following builders:
Great Buy Homes
Novak‐Fleck
Tollberg Homes
The Council reviewed all of the proposals at the 8/15/16 Work Session meeting, and selected Great Buy
Homes as the preferred builder for the property. Great Buy Homes is a custom home builder based out of
Anoka, and has recently completed projects in Coon Rapids and Anoka. The EDA has not worked with Great
Buy Homes in the past. Staff did call community development staff in Coon Rapids to discuss their
experience working with the builder. Staff from Coon Rapids gave a positive reference for Great Buy Homes
and complimented their quality of work.
Summary of the Home Proposed by Great Buy Homes
The proposed homes meet all criteria set forth in the RFP guidelines and both homes will feature the
following base characteristics:
Two‐story home design over full basement (same home for both lots)
Above‐average curb appeal
High‐end trim package
Agenda Section
EDA
Item Number
5
Request for Action, Page 2
Master suite
Three‐car garages
2,992 square feet (1,962 finished) per home
Main floor fireplace
Typical exterior finishes, vinyl siding with cultured stone accents
Anticipated sales price = $320,000
Reimbursement for Curb Cut Related Costs
When purchased by the EDA, the Louisiana Avenue property was a single lot that contained a vacant
foreclosed home and detached garage. Since acquiring the property, the EDA has subdivided the property
into two separate lots. Because the property has been subdivided, there is the need to construct a new curb
cut access for the second lot that has been created. Costs related to the curb cut installation were discussed
during the review of the proposals at the 8/15 Work Session meeting. The Council agreed to reimburse Great
Buy Homes for actual costs (not to exceed $3,500) for costs associated with the curb cut work.
Development Agreement and Next Steps
Staff has worked with the City Attorney and the buyer to draft a purchase and redevelopment agreement for
the sale of the lots. The agreement ensures that the provisions set forth in the RFP will be met and sets the
purchase price for both lots at $110,000. The agreement included in the attachments is considered complete
by staff and the City Attorney. However, some minor revisions may be necessary once fully reviewed by the
buyer. Any substantial changes to the agreement would be brought to the EDA for approval. Once the
agreement is fully executed, staff anticipates that the closing of the lot sale will take place sometime in
September.
Recommendation
Staff recommends that the EDA approve the resolution approving the purchase and redevelopment
agreement for the sale of 6065 and 6067 Louisiana Avenue North to Great Buy Homes, Inc.
Attachments
Resolution and Exhibits (agreements)
Excerpt from the 8/15/16 Work Session Minutes
Great Buy Homes Proposal
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 16-___
RESOLUTION APPROVING PURCHASE AND REDEVELOPMENT
AGREEMENT WITH GREAT BUY HOMES, INC FOR THE
SALE OF 6065 AND 6067 LOUISIANA AVENUE NORTH
(IMPROVEMENT PROJECT 973)
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 6065 Louisiana
Avenue North, New Hope, MN, on November 16, 2015, with the intention of razing the existing
house and all site improvements in preparation of subdividing the lot into two separate tax
parcels followed by the construction of two new single family homes; and
WHEREAS, New Hope City staff received an offer from GREAT BUY HOMES, INC.,
a Minnesota corporation (“Great Buy Homes”) regarding the sale and redevelopment of the two
newly created lots located at 6065 and 6067 Louisiana Avenue North, New Hope, MN, and
legally described as:
6065 Louisiana Ave N: Lot 2 Block 1, McDonalds Addition to City of New Hope,
Hennepin County, Minnesota.
6067 Louisiana Ave N: Lot 1 Block 1, McDonalds Addition to City of New Hope,
Hennepin County, Minnesota.
(The pre-platted legal description is attached as Exhibit A to the Purchase and
Redevelopment Agreement.)
(collectively referred to as the “Property”).
WHEREAS, the EDA arrived at an agreement with Great Buy Homes, to sell the
Property for the total purchase price of $110,000.00 (or $55,000 per lot) upon all of the terms set
forth in the RFP; and
WHEREAS, the EDA has accepted Great Buy Homes offer and has presented a draft of
the Purchase and Redevelopment Agreement to Great Buy Homes, for its review, a copy of
which is attached hereto as Exhibit A (“Purchase and Redevelopment Agreement”) and
incorporated herein by reference; and
WHEREAS, it is in the best interest of the EDA to sell the Property to Great Buy Homes
for the total sum of $110,000.00, in order for Great Buy Homes to redevelop and build two new
single family homes on the Property in accordance with the City’s scattered site housing program
and policy; and
WHEREAS, the City staff is hereby seeking approval from the EDA of the Purchase and
Redevelopment Agreement, subject to other terms relating to the closing on the sale of the
Property.
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 sale of the Property by the EDA to Great Buy Homes, for the total
purchase price of $110,000.00, with other terms and conditions as set forth in the
Purchase and Redevelopment Agreement attached hereto as Exhibit A, is
approved subject to the review and approval by the City Attorney of the final
language and exhibits to the Purchase and Redevelopment Agreement relating to
the closing on the sale of the Property, it being in the best interest of the EDA to
sell the Property for redevelopment and construction of two single-family homes
in accordance with the City’s scattered site housing program and policy.
3. The EDA shall use due diligence for selling the Property to Great Buy Homes, for
the construction of two single-family homes, so as to return the Property to the tax
rolls for the benefit of all taxing jurisdictions.
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 sale of the Property in accordance with
the Purchase and Redevelopment Agreement.
Dated the 12th day of September, 2016.
____________________________________
Kathi Hemken, President
Attest: __________________________
Kirk McDonald, Executive Director
P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-21605 - 6065 Louisana Ave. N. Rezone and Plat\Resolution Approving Sale of 6065 and
6067 Louisiana Avenue North.docx
1
PURCHASE AND REDEVELOPMENT AGREEMENT
This Purchase and Redevelopment Agreement ("Agreement") is made by and between
GREAT BUY HOMES, INC. a Minnesota corporation (“Buyer") and the ECONOMIC
DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE,
MINNESOTA, a public body corporate and politic created pursuant to the laws of the State of
Minnesota ("Seller") effective September ______, 2016. In consideration of the covenants and
agreements of the respective parties as hereinafter set forth, Seller shall sell and Buyer shall
purchase the vacant parcels of real property located in the City of New Hope at the property
addresses of 6065 and 6067 Louisiana Avenue North, New Hope, Minnesota, and legally
described on the attached Exhibit A (collectively referred to herein as the “Property”).
1. Purchase Price. The purchase price for the Property is One Hundred Ten Thousand and
No/100 Dollars ($110,000.00) (the “Purchase Price”), which Buyer shall pay as follows:
an initial payment of Two Thousand and No/100 Dollars ($2,000.00) (the “Earnest
Money”), which sum shall be paid to Seller upon Buyer and Seller’s execution of this
Agreement and One Hundred Eight Thousand and No/100 Dollars ($108,000.00) payable
by wire, cashier’s check or cash on the “Date of Closing”, as that term is defined in
paragraph 6 below. There are no items of personal property or fixtures included in this
sale.
2. Title Conveyed. On the Date of Closing, Seller shall deliver two separate Quit Claim
Deeds (the "Deeds") to Buyer conveying marketable title of record, free and clear of
liens, encumbrances, assessments and restrictions, except for the “Permitted
Encumbrances” set forth on Exhibit B and the restrictive covenants referenced below in
paragraph 4.b.
3. Representations of Seller. Seller represents and agrees as follows:
a. Seller owns the Property and has the right to sell the same, and that there are no
unrecorded contracts, leases, easements or other agreements or claims of any third
party affecting the use, title, occupancy or development of the Property, there are
no parties other than Seller in possession of any portion of the Property, and no
person, firm or entity has any right of refusal, option or other right to acquire all
or any part of the Property.
b. Seller has not received any notice from any governmental authority concerning
any eminent domain, condemnation, special taxing district, or rezoning
proceedings.
c. To the best of Seller’s knowledge without inquiry there are no septic systems or
wells on the Property.
d. Seller represents that it has the requisite power and authority to enter into and
perform this Agreement and any Seller’s Closing Documents signed by it.
2
e. Seller is not a “foreign person,” “foreign partnership,” “foreign trust” or “foreign
estate” as those terms are defined in Section 1445 of the Internal Revenue Code.
f. To the best of Seller’s knowledge without inquiry, no above ground or
underground tanks are located in or about the Property.
g. Seller makes no other warranties as to the condition of the Property.
Seller agrees that any breach of Seller’s foregoing representations shall be grounds for Buyer to
terminate this Agreement. In the event of such termination, the Earnest Money shall be returned.
Wherever herein a representation is made “to the best of Seller’s knowledge,” such
representation is limited to the actual knowledge of the President and/or Executive Director of
Seller.
4. Representations of Buyer. As an essential part of this Agreement and in order to
induce Seller to enter into this Agreement and sell the Property, Buyer hereby represents
to Seller:
a. SUBJECT TO THE FOREGOING REPRESENTATIONS BY SELLER,
BUYER HEREBY ACKNOWLEDGES THAT BUYER IS PURCHASING
THE PROPERTY IN “AS IS” CONDITION AS TO THE USE OF THE
PROPERTY. Buyer understands and agrees that the Purchase Price is the fair
market value of the Property in its “AS IS” condition. Buyer acknowledges that
they have inspected or have had the opportunity to inspect the Property and agree to
accept the Property "AS IS." Buyer has the right, at its own expense to take soil
samples for the purpose of determining if the soil is suitable for construction of the
homes described in paragraph 10 below. If the soil is determined to be unacceptable
Buyer may rescind this Agreement by written notice to Seller, in which case the
Agreement shall be null and void and all earnest money paid hereunder shall be
refunded to Buyer.
b. Buyer agrees the first sales of the two separate homes on the Property will be sold
to owner-occupants. An “owner-occupant” shall be defined as an individual(s)
that purchases each home from Buyer by warranty deed or a contract for deed and
intending to reside in the respective home as a primary residence. To insure the
intent of the parties that the homes constructed on the Property are both purchased
by an owner-occupant, Buyer will record restrictive covenants and assessment
agreements against the Property prohibiting the leasing of the homes for a period
of twelve (12) months after the sale of such homes by Buyer to an owner-
occupant of each such home, respectively. The restrictive covenants and
assessment agreements shall be substantially in the form of the documents
attached hereto as Exhibits C and D, respectively. Further, the restrictive
covenants and assessment agreements shall provide that the EDA may levy a
$20,000.00 assessment on the Property prior to their respective sales if either of
the lots are not being sold to an owner-occupant. The EDA shall release the
Property from these restrictive covenants and assessment agreements upon the
issuance of a certificate of occupancy for the construction of the homes on the
3
Property and upon the receipt by the EDA of an affidavit signed by Buyer and
both owner-occupants verifying owner-occupants’ intent to reside in the
respective homes as their primary residences in compliance with the restrictive
covenants described herein in the form attached as Exhibit C.
c. Within one (1) year of Closing, Buyer shall complete the construction of the two
separate single family homes on the Property (the Improvements). The
Improvements must be consistent with all building and zoning requirements and
the restrictive covenants applicable to the Property.
The representations set forth in this paragraph shall be incorporated into appropriate documents
to be recorded against the Property (whether by declaration, restrictive covenants, or
development agreement as hereinafter defined) subject to approval by Seller and Buyer as a
condition of Closing.
5. Title Commitment and Policy.
a. Seller shall deliver to Buyer a Commitment for an ALTA Form B owner's policy
of title insurance (the “Commitment”) issued by a title insurance company of
Buyer’s choice (“Title Company”) and covering title to the Property, in the
amount of the Purchase Price. Buyer agrees to pay the costs associated with the
preparation and issuance of the Commitment; Buyer shall pay the premium for the
owner’s policy, if any, and the lender’s policy, if any, along with the price for any
endorsements requested by Buyer or Buyer’s lender.
b. Buyer shall have fifteen (15) days after receipt of the Commitment to review and
approve the title to the Property and to object to any exception to title that is
disclosed in the Commitment or which is otherwise discovered by Buyer. In the
event that Buyer does not within such fifteen (15) day period give notice to Seller
objecting to any such exceptions, then all such exceptions shall be deemed
approved and shall be considered a part of the Permitted Encumbrances. If Buyer
timely objects to an exception to title, then on or before the tenth (10) day
following Buyer’s notice of exception, Seller shall remove the exception or notify
Buyer that Seller is unwilling or unable to remove the exception. Within five (5)
days of any notice by Seller that Seller it is unable to remove an exception to title,
Buyer may elect by notice to Seller to either:
(i) terminate this Agreement, whereupon all of the Earnest Money shall be
returned to Buyer and the parties shall be released from all further
obligations hereunder except obligations under this Agreement which
provide for continued exercise following the cancellation or other
termination of this Agreement; or
(ii) elect to have this Agreement remain in effect, in which event Buyer will
be deemed to have approved the previously-cited exception and the same
shall be considered part of the Permitted Encumbrances.
4
6. Closing.
a. Closing shall occur on or before October 31, 2016 (the “Date of Closing” or
“Closing”), unless both parties agree, in writing, to an earlier or later time.
b. Closing shall occur at the office of the Title Company.
c. Seller shall deliver at closing the following executed and acknowledged
documents:
(i) the Deeds;
(ii) affidavit(s) in industry-standard form(s) stating that possession of the
Property is being delivered free of any mechanic's or statutory liens in
connection with work performed prior to closing; Seller is not a foreign
person or entity; and addressing such other matters as Buyer may
reasonably require.
7. Payments/Prorations. At Closing, Seller shall pay the cost of recording any instrument
(other than the Deeds) necessary to place title in the condition required under this
Agreement, State deed tax, and all special assessments levied, pending or constituting a
lien against the Property as of the Date of Closing, including without limitation any
installments of special assessments and interest payable with general real estate taxes in
the year of closing. Seller will pay general real estate taxes payable in the year prior to
the year of closing and all prior years. Buyer shall pay at Closing the cost of the owner’s
policy or lender’s policy of title insurance (if any), sales tax (if any) resulting from the
Closing, the fees required for recording the Deeds, the Purchase and Redevelopment
Agreement, the assessment agreements and restrictive covenants and all customary
closing fees charged by the Title Company or other closing agent, if any, utilized to close
the transaction contemplated by this Agreement. General real estate taxes payable in the
year of closing shall be prorated by Seller and Buyer as of the closing date based upon a
calendar year. Each party shall pay its own attorney’s fees.
8. Post-Closing Payment Regarding Curb Cut. Seller agrees to reimburse Buyer for
actual costs incurred by Buyer associated with the installation of the curb cut at 6065
Louisiana Ave N., not to exceed $3,500.00. Buyer shall submit to Seller proof of actual
costs incurred relating to installation of the curb cut on the Property, and Seller will
reimburse Buyer, in an amount not to exceed $3,500.00.
9. Condemnation. If, prior to the Date of Closing, all or any part of the Property shall be
condemned by governmental or other lawful authority, Buyer shall have the option of (a)
completing the purchase contemplated by this Agreement, in which event all
condemnation proceeds or claims thereof shall be assigned to Buyer, or (b) canceling this
Agreement, in which event the Earnest Money shall be refunded and this Agreement shall
be terminated with neither party having any rights against or obligations to the other
except rights or obligations under this Agreement which provide for continued exercise
following closing or cancellation or other termination of this Agreement, and Seller shall
be entitled to any and all condemnation proceeds.
5
10. Construction of Homes. Buyer agrees that it will construct two new single family
homes on the Property. This covenant shall survive the delivery of the Deeds.
a. The single family homes described in this paragraph are referred to as the
"Minimum Improvements.”
b. The Minimum Improvements shall consist of two new single family homes, and
shall be constructed substantially in accordance with the RFP Guidelines attached
as Exhibit E and the proposal approved by Seller on September 12, 2016
attached as Exhibit F.
c. Construction of the Minimum Improvements must be substantially completed
within one (1) year following Closing. Construction will be considered
substantially complete when the final certificate of occupancy has been issued by
the City of New Hope building inspector.
d. Promptly after substantial completion of the Minimum Improvements in
accordance with those provisions of the Agreement relating solely to the
obligations of Buyer to construct such Minimum Improvements (including the
date for completion thereof), Seller will furnish Buyer with a Certificate of
Completion for such improvements. Such certification by Seller shall be (and it
shall be so provided in the Deeds and in the certification itself) a conclusive
determination of satisfaction and termination of the agreements and covenants in
the Agreement and in the Deeds with respect to the obligations of Buyer and its
successors and assigns, to construct the Minimum Improvements and the dates for
completion thereof.
The certificate provided for in this paragraph of this Agreement shall be in such
form as will enable it to be recorded in the Hennepin County Recorder’s Office
and other instruments pertaining to the Property. If Seller shall refuse or fail to
provide any certification in accordance with the provisions of this paragraph,
Seller shall, within thirty (30) days after written request by Buyer, provide Buyer
with a written statement, indicating in adequate detail in what respects Buyer has
failed to complete the Minimum Improvements in accordance with the provisions
of the Agreement, or is otherwise in default, and what measures or acts it will be
necessary, in the opinion of Seller for Buyer to take or perform in order to obtain
such certification.
e. Buyer represents and agrees that until issuance of the Certificate of Completion
for the Minimum Improvements:
(i) Buyer has not made or created and will not make or create or suffer to be
made or created any total or partial sale, assignment, conveyance, or lease,
or any trust or power, or transfer in any other mode or form of or with
respect to this Agreement or the Property or any part thereof or any interest
therein, or any contract or agreement to do any of the same, to any person
6
or entity (collectively, a “Transfer”), without the prior written approval of
Seller. The term "Transfer" does not include encumbrances made or
granted by way of security for, and only for, the purpose of obtaining
construction, interim or permanent financing necessary to enable Buyer
or any successor in interest to the Property, or any part thereof, to
construct the Minimum Improvements or component thereof.
(ii) If Buyer seeks to effect a Transfer prior to issuance of the Certificate of
Completion, Seller shall be entitled to require as conditions to such
Transfer that:
(1) any proposed transferee shall have the qualifications and financial
responsibility, in the reasonable judgment of Seller, necessary and
adequate to fulfill the obligations undertaken in this Agreement by
Buyer as to the portion of the Property to be transferred; and
(2) Any proposed transferee, by instrument in writing satisfactory to
Seller and in form recordable in the public land records of Hennepin
County, Minnesota, shall, for itself and its successors and assigns,
and expressly for the benefit of Seller, have expressly assumed all of
the obligations of Buyer under this Agreement as to the portion of
the Property to be transferred and agreed to be subject to all the
conditions and restrictions to which Buyer is subject as to such
portion; provided, however, that the fact that any transferee of, or
any other successor in interest whatsoever to, the Property, or any
part thereof, shall not, for whatever reason, have assumed such
obligations or so agreed, and shall not (unless and only to the extent
otherwise specifically provided in this Agreement or agreed to in
writing by Seller) deprive Seller of any rights or remedies or
controls with respect to the Property, the Minimum Improvements
or any part thereof or the construction of the Minimum
Improvements; it being the intent of the parties as expressed in this
Agreement that (to the fullest extent permitted at law and in equity
and excepting only in the manner and to the extent specifically
provided otherwise in this Agreement) no transfer of, or change with
respect to, ownership in the Property or any part thereof, or any
interest therein, however consummated or occurring, and whether
voluntary or involuntary, shall operate, legally, or practically, to
deprive or limit Seller of or with respect to any rights or remedies on
controls provided in or resulting from this Agreement with respect
to the Property that Seller would have had, had there been no such
transfer or change. In the absence of specific written agreement by
Seller to the contrary, no such transfer or approval by Seller thereof
shall be deemed to relieve Buyer, or any other party bound in any
way by this Agreement or otherwise with respect to the Property,
from any of its obligations with respect thereto.
7
(3) Any and all instruments and other legal documents involved in
effecting the transfer of any interest in this Agreement or the
Property governed by this subparagraph shall be in a form
reasonably satisfactory to Seller.
(iii) If the conditions described above are satisfied then the Transfer will be
approved and Buyer shall be released from its obligation under this
Agreement, as to the portion of the Property that is transferred, assigned,
or otherwise conveyed. The provisions of this paragraph (iii) apply to all
subsequent transferors.
(iv) Upon issuance of the Certificate of Completion, Buyer may transfer or
assign the Minimum Improvements and/or Buyer's rights and obligations
under this Agreement with respect to such Property without the prior
written consent of Seller.
f. Buyer agrees that (a) it will use the Minimum Improvements as only two separate
single family, owner-occupied homes, (b) it will not seek exemption from real estate
taxes on the Property under State law, and (c) it will not transfer or permit transfer of
the Property to any entity whose ownership or operation of the property would result
in the Property being exempt from real estate taxes under State law (other than any
portion thereof dedicated or conveyed to the City of New Hope or Seller in
accordance with this Agreement). The covenants in this paragraph run with the land,
survive both delivery of the Deed and issuance of the Certificate of Completion for
the Minimum Improvements, and shall remain in effect for at least 30 years after the
Date of Closing.
g. Buyer shall comply with all recommendations of the City Engineer.
h. Buyer’s construction plans shall be approved by the City Building Official.
11. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to
Buyer. In the event that subsequent to conveyance of the Property or any part thereof to
Buyer and prior to receipt by Buyer of the Certificate of Completion of the Minimum
Improvements, Buyer fails to carry out its obligations with respect to the construction of the
Minimum Improvements (including the nature and the date for the completion thereof), or
abandons or substantially suspends construction work, and any such failure, abandonment,
or suspension shall not be cured, ended, or remedied within thirty (30) days after written
demand from Seller to Buyer to do so, then Seller shall have the right to re-enter and take
possession of the Property and to terminate (and revert in Seller) the estate conveyed by the
Deeds to Buyer, it being the intent of this provision, together with other provisions of the
Agreement, that the conveyance of the Property to Buyer shall be made upon, and that the
Deeds shall contain a condition subsequent to the effect that in the event of any default on
the part of Buyer and failure on the part of Buyer to remedy, end, or abrogate such default
within the period and in the manner stated in such subdivisions, Seller at its option may
declare a termination in favor of Seller of the title, and of all the rights and interests in and
8
to the Property conveyed to Buyer, and that such title and all rights and interests of Buyer,
and any assigns or successors in interest to and in the Property, shall revert to Seller, but
only if the events stated in this paragraph have not been cured within the time periods
provided above.
Notwithstanding anything to the contrary contained in this paragraph, Seller shall have no right
to reenter or retake title to and possession of a portion of the Property for which a Certificate of
Completion has been issued.
12. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in Seller
of title to and/or possession of the Property or any part thereof as provided in paragraph
11, Seller shall apply the Purchase Price paid by Buyer under paragraph 1 of this
Agreement as follows:
a. First, to reimburse Seller for all costs and expenses incurred by Seller, including but
not limited to proportionate salaries of personnel, in connection with the recapture,
management, and resale of the Property or part thereof (but less any income derived
by Seller from the property or part thereof in connection with such management);
all taxes, assessments, and water and sewer charges with respect to the Property or
part thereof (or, in the event the Property is exempt from taxation or assessment or
such charge during the period of ownership thereof by Seller, an amount, if paid,
equal to such taxes, assessments, or charges (as determined by Seller assessing
official) as would have been payable if the Property were not so exempt); any
payments made or necessary to be made to discharge any encumbrances or liens
existing on the Property or part thereof at the time of revesting of title thereto in
Seller or to discharge or prevent from attaching or being made any subsequent
encumbrances or liens due to obligations, defaults or acts of the Buyer, its
successors or transferees; any expenditures made or obligations incurred with
respect to the making or completion of the Minimum Improvements or any part
thereof on the Property or part thereof; and any amounts otherwise owing Seller by
the Buyer and its successor or transferee; and
b. Second, to reimburse Buyer for the balance of the Purchase Price remaining after
the reimbursements specified in paragraph (a) above. Such reimbursement shall
be paid to Buyer upon delivery of executed, recordable warranty deeds to the
Property by Buyer to Seller.
13. Notices. All notices required hereunder shall be in writing and shall be deemed to have
been duly given and received (a) two (2) business days after depositing of the same in the
mail if sent by regular, registered or certified mail, postage prepaid, to the party to whom
directed, at such party's address herein set forth; or (b) upon delivery, or attempted
delivery if delivered by overnight courier service or hand delivery. Any party shall have
the right to designate any other address for notice purposes by written notice to the other
party in the manner aforesaid. The addresses of the parties are as follows:
9
SELLER: Economic Development Authority in and for the City of New Hope
Kirk McDonald, Executive Director
4401 Xylon Avenue North
New Hope, MN 55428-4898
with copy to: Stacy A. Woods, New Hope Assistant City Attorney
Jensen Sondrall Persellin & Woods, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
BUYER: GREAT BUY HOMES, INC.
5790 195th Ave NW
Anoka, MN 55303
with copy to: _______________________________
_______________________________
_______________________________
________________________________
14. No Broker Involved. Seller and Buyer represent and warrant to each other that there is no
broker involved in this transaction with whom it has negotiated or to whom it has agreed to
pay a broker commission. Buyer agrees to indemnify Seller for any and all claims for
brokerage commissions or finders' fees in connection with negotiations for purchase of the
Property arising out of any alleged agreement or commitment or negotiation by Buyer, and
Seller agrees to indemnify Buyer for any and all claims for brokerage commissions or
finders' fees in connection with negotiations for purchase of the Property arising out of any
alleged agreement or commitment or negotiation by Seller.
15. Remedies. If Buyer defaults under this Agreement, Seller shall have the right to
terminate this Agreement by giving written notice to Buyer as provided by law. If Buyer
fails to cure such default as provided by law, this Agreement will terminate, and upon
such termination Seller will retain the Earnest Money and neither party shall have any
rights or obligations against the other except rights or obligations under this Agreement
which provide for continued exercise following the cancellation or other termination of
this Agreement. If Seller defaults under this Agreement, Buyer’s only remedy shall be to
terminate the Agreement and recover the Earnest Money paid to Seller. Buyer shall not
have any right to the remedy of specific performance
16. Assignment/Prohibition Against Transfer of Property. Buyer may not assign its
rights and obligations hereunder without the prior written consent of Seller, which
consent may be granted or withheld by Seller in its sole discretion.
17. Miscellaneous. This Agreement shall be governed by the laws of the State of Minnesota.
No amendment of this Agreement shall be valid or binding unless executed by authorized
representatives of both Seller and Buyer. The headings and captions of this Agreement
are for the convenience of the parties only and shall not be looked to in the interpretation
or enforcement of this Agreement. Seller and Buyer acknowledge and agree that each
has had opportunity to participate in the drafting of this Agreement and accordingly
10
acknowledge and agree that this Agreement as a whole and each of is clauses are not to
be interpreted in favor of or against either party. This Agreement may be signed in
counterpart, with each copy of the Agreement binding upon the signing party at the time
of signing and together which shall constitute a single document.
18. Survival. The Parties representations contained herein shall survive the delivery of the
Deed.
IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the above
date (“Effective Date”).
SELLER:
ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF NEW HOPE
By: ________________________________
Kathi Hemken
Its: President
Dated: September____, 2016
By: ________________________________
Kirk McDonald
Its: Executive Director
Dated: September____, 2016
BUYER:
GREAT BUY HOMES, INC.
By: ________________________________
Glenn Hammer
Its: President
Dated: September____, 2016
STATE OF MINNESOTA )
) s s .
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _____ day of September, 2016,
by Kathi Hemken and Kirk McDonald, the President and Executive Director, respectively, of 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.
_______________________________
N o t a r y P u b l i c
11
STATE OF MINNESOTA )
) ss.
COUNTY OF _______________ )
The foregoing instrument was acknowledged before me this ___ day of September, 2016, by Glenn
Hammer, the President of GREAT BUY HOMES, INC., a Minnesota corporation, on behalf of said
corporation.
_______________________________
N o t a r y P u b l i c
DRAFTED BY:
Jensen Sondrall Persellin & Woods, P.A.
8525 Edinbrook Crossing, #201
Brooklyn Park, MN 55443
(763) 424-8811
12
Exhibit A
Legal Description
(6065 Louisiana Ave. N.): See attached legal description which property is to be
re-platted as:
Lot 2 Block 1, McDonalds Addition to City of New Hope, Hennepin County,
Minnesota.
(6067 Louisiana Ave. N.): See attached legal description which property is to be
re-platted as:
Lot 1 Block 1, McDonalds Addition to City of New Hope, Hennepin County,
Minnesota.
13
Exhibit B
Permitted Encumbrances
1. Restrictions, reservations, covenants and easements relating to use or
improvement of the Property without effective forfeiture provisions of record on
the Effective Date;
2. Building and zoning laws, ordinances, city, state and federal regulations;
3. Governmental regulations, if any, affecting the use and occupancy of the
Property;
4. All rights in public highways upon the land;
5. Easements for public rights-of-way and public and private utilities, which do not
interfere with present improvements;
6. Reservations to the State, in trust for the taxing districts concerned, of minerals
and mineral rights in those portions of the Property the title to which may have at
any time heretofore been forfeited to the State for nonpayment of real estate taxes.
7. The lien of unpaid special assessments, if any, not presently payable but to be
paid as a part of the annual taxes to become due;
8. The lien of unpaid real estate taxes, if any, not presently payable but to be paid as
part of the annual taxes to become due.
14
Exhibit C
Restrictive Covenants
See attached.
1
RESTRICTIVE COVENANTS
THESE RESTRICTIVE COVENANTS (“Agreement”) dated effective the ____ day of
__________, 2016, by and between 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”) and GREAT BUY HOMES, INC., a Minnesota corporation (“Great Buy
Homes”).
RECITALS
WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between
the EDA and Great Buy Homes dated effective September _____, 2016 (“Purchase Agreement”),
Great Buy Homes purchased the real property located at 6065 Louisiana Avenue North in the
City of New Hope from the EDA, which property is legally described as Lot 2, Block 1
McDonalds Addition to City of New Hope, Hennepin County, Minnesota, (“Property”) which
purchase closed on ____________, 2016; and
WHEREAS, Great Buy Homes has committed to constructing a new residential home on
the Property pursuant to the terms of the Purchase Agreement; and
WHEREAS, the EDA and Great Buy Homes have agreed Great Buy Homes shall
complete the construction of the home as described in the Purchase Agreement within one (1)
year of the date of closing on the purchase of the Property; and
WHEREAS, the EDA and Great Buy Homes have agreed the EDA may levy a
$20,000.00 assessment against the Property prior to Great Buy Homes sale of the Property with
the completed home if it is not being sold to an owner-occupant. Further, said assessment may
be certified to Hennepin County for collection with real estate taxes payable in a single
installment; and
2
WHEREAS, compliance with the restrictions imposed by this Agreement are additional
consideration for the sale of the Property to Great Buy Homes.
NOW THEREFORE, for good and valuable consideration the receipt and sufficiency of
which is hereby acknowledged, Great Buy Homes agrees as follows:
AGREEMENT
1. Restrictive Covenants. Great Buy Homes hereby covenants and agrees with the EDA
that the Property is restricted by the following covenants:
a) The initial conveyance of the residential dwelling (“Dwelling”) constructed upon
the Property will be only to “Owner-occupant(s)”. “Owner-occupant” is defined
as an individual that purchases the Property from Great Buy Homes with a bona
fide intent to reside in the Dwelling as a primary residence; and
b) The Dwelling constructed on the Property shall be occupied only by the Owner-
occupant, and/or by the “Immediate Family Member(s)” of the Owner-occupant
for a period of twelve (12) consecutive months commencing on the date of initial
conveyance to an Owner-occupant. “Immediate Family Member” shall only mean
a parent, step-parent, child, step-child, grandparent, grandchild, brother, sister,
uncle, aunt, nephew or niece. Relationship may be by blood or marriage.
2. Release of Restrictions. The Property will be released from the restrictions imposed by
this Agreement as follows:
a) Upon the issuance of a Certificate of Occupancy for a Dwelling constructed upon
the Property and receipt by the EDA of an Affidavit signed by Great Buy Homes
and the Owner-occupant verifying the Owner-occupant’s intent to occupy the
Dwelling as a primary residence the Property shall be released from the restriction
stated in paragraph 1(a) above.
b) The Property shall be released from the restriction of paragraph 1(b) above on the
one (1) year anniversary of the date the Property was conveyed in compliance
with paragraph 1(a).
3. Waiver by EDA. Notwithstanding the restrictions stated above, the EDA may waive the
restrictions stated above upon a finding of hardship or other extenuating circumstances
sufficient to justify the waiver in its sole discretion.
4. Agreement to Assessment. Great Buy Homes acknowledges and agrees the EDA may
levy a $20,000.00 assessment against the Property if: (a) the Property is not improved
with a single family house on or before__________, 2017; and/or (b) if Great Buy
Homes sells the Property with the completed home to a non-owner-occupant in violation
of paragraph 1(a) above. Further, Great Buy Homes agrees the assessment provided by
this paragraph may be certified to Hennepin County as a special assessment and collected
with the real estate taxes against the Property in a single installment.
3
5. Waiver by Great Buy Homes. Great Buy Homes expressly waives objection to any
irregularity with regard to any assessment levied against the Property per this Agreement
or any claim that the amount thereof levied against the Property is excessive, together
with all rights to appeal the assessment in the courts.
6. Additional Remedies. It is further understood that if Great Buy Homes or an Owner-
occupant should breach their respective obligations under this Agreement, the EDA will
suffer irrevocable harm from which a recovery of money damages would be an
inadequate remedy. It is therefore agreed that the EDA shall be entitled, as a matter of
right, in any Court of competent jurisdiction to a mandatory injunction restraining and
enjoining pending litigation, as well as upon final determination thereof, from attempting
to violate or violating this Agreement. It is further agreed that the EDA’s rights to such
injunctive relief shall be cumulative with and in addition to any other rights, remedies or
actions which the EDA may have.
7. Great Buy Homes’ Successors. This Agreement shall not be terminated by:
a) The voluntary dissolution of Great Buy Homes or any parent subsidiary or
successor of Great Buy Homes;
b) Merger whereby Great Buy Homes (or such parent subsidiary or successor of
Great Buy Homes) is not the surviving or resulting entity; or
c) Any transfer of all or substantially all of the assets of Great Buy Homes. In the
event of any such merger or consolidation or transfer of assets, the provisions of
this Agreement shall inure to the benefit of and shall be binding upon the
surviving or resulting entity to which such assets shall be transferred.
8. Running of Benefits and Burdens. All provisions of this Agreement, including the
benefits and burdens run with the land and are binding upon and shall inure to the benefit
of the assigns and successors of the parties to this Agreement, such that the provisions of
this Agreement shall restrict the Property, and subdivision thereof, notwithstanding any
sale or transfer of the Property or any subdivision thereof to a third party.
9. Notices. Any notice to be given by a party to this Agreement shall be personally
delivered, sent by registered or certified mail, sent by confirmed electronic transmission,
or sent by a nationally recognized overnight courier that issues a receipt to the address set
forth for the other party in this section (or to such other address as may be designated by
notice to the other parties), and shall be deemed given upon the earlier of personal
delivery, the date postmarked, confirmation of electronic transmission, delivery to such
courier or the refusal to accept such service.
If to the EDA: EDA in and for the City of New Hope
Attn: Kirk McDonald
4401 Xylon Avenue North
New Hope, MN 55428
4
kmcdonald@ci.new-hope.mn.us
If to Great Buy Homes: GREAT BUY HOMES, INC.
Attn: Glenn Hammer
5790 195th Ave NW.
Anoka, MN 55303
________________________
10. Governing Law. All matters relating to the interpretation, construction, validity and
enforcement of this Agreement shall be governed by the internal laws of the State of
Minnesota.
11. Cumulative Rights. Each and all of the various rights, power and remedies of the EDA
in this Agreement shall be considered as cumulative with and in addition to any other
rights, powers, or remedies of EDA, and no one of them is exclusive to the others, or is
exclusive to any other rights, powers and remedies allowed by law. The exercise or
partial exercise of any right, power or remedy shall neither constitute the election thereof,
nor the waiver of any other power or remedy.
12. Amendment. This Agreement may be modified or amended only by a written
instrument executed by Great Buy Homes and the EDA.
IN AGREEMENT, the parties have executed these Restrictive Covenants effective the day and
year first above-written.
ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF NEW HOPE
By: ________________________________
Kathi Hemken
Its: President
Dated: _________________, 2016
By: ________________________________
Kirk McDonald
Its: Executive Director
Dated: _________________, 2016
GREAT BUY HOMES, INC.
By: ________________________________
Glenn Hammer
Its: President
Dated: _________________, 2016
5
STATE OF MINNESOTA
COUNTY OF HENNEPIN
}ss.
The foregoing instrument was acknowledged before me this ____ day of ____________,
2016, by Kathi Hemken and Kirk McDonald, the President and Executive Director of 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.
(Notary Public Seal)
_______________________________________
Notary Public
STATE OF MINNESOTA } ss.
COUNTY OF ____________
The foregoing instrument was acknowledged before me this ____ day of ________,
2016, by Glenn Hammer, the President of GREAT BUY HOMES, INC., a Minnesota
corporation, on behalf of said corporation.
(Notary Public Seal)
______________________________________
Notary Public
Drafted By:
JENSEN SONDRALL PERSELLIN & WOODS, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424-8811
P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-21605 - 6065 Louisana Ave. N. Rezone and Plat\Restrictive Covenant - 6065 Louisiana
Ave.docx
1
RESTRICTIVE COVENANTS
THESE RESTRICTIVE COVENANTS (“Agreement”) dated effective the ____ day of
__________, 2016, by and between 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”) and GREAT BUY HOMES, INC., a Minnesota corporation (“Great Buy
Homes”).
RECITALS
WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between
the EDA and Great Buy Homes dated effective September _____, 2016 (“Purchase Agreement”),
Great Buy Homes purchased the real property located at 6067 Louisiana Avenue North in the
City of New Hope from the EDA, which property is legally described as Lot 1, Block 1
McDonalds Addition to City of New Hope, Hennepin County, Minnesota, (“Property”) which
purchase closed on ____________, 2016; and
WHEREAS, Great Buy Homes has committed to constructing a new residential home on
the Property pursuant to the terms of the Purchase Agreement; and
WHEREAS, the EDA and Great Buy Homes have agreed Great Buy Homes shall
complete the construction of the home as described in the Purchase Agreement within one (1)
year of the date of closing on the purchase of the Property; and
WHEREAS, the EDA and Great Buy Homes have agreed the EDA may levy a
$20,000.00 assessment against the Property prior to Great Buy Homes sale of the Property with
the completed home if it is not being sold to an owner-occupant. Further, said assessment may
be certified to Hennepin County for collection with real estate taxes payable in a single
installment; and
2
WHEREAS, compliance with the restrictions imposed by this Agreement are additional
consideration for the sale of the Property to Great Buy Homes.
NOW THEREFORE, for good and valuable consideration the receipt and sufficiency of
which is hereby acknowledged, Great Buy Homes agrees as follows:
AGREEMENT
1. Restrictive Covenants. Great Buy Homes hereby covenants and agrees with the EDA
that the Property is restricted by the following covenants:
a) The initial conveyance of the residential dwelling (“Dwelling”) constructed upon
the Property will be only to “Owner-occupant(s)”. “Owner-occupant” is defined
as an individual that purchases the Property from Great Buy Homes with a bona
fide intent to reside in the Dwelling as a primary residence; and
b) The Dwelling constructed on the Property shall be occupied only by the Owner-
occupant, and/or by the “Immediate Family Member(s)” of the Owner-occupant
for a period of twelve (12) consecutive months commencing on the date of initial
conveyance to an Owner-occupant. “Immediate Family Member” shall only mean
a parent, step-parent, child, step-child, grandparent, grandchild, brother, sister,
uncle, aunt, nephew or niece. Relationship may be by blood or marriage.
2. Release of Restrictions. The Property will be released from the restrictions imposed by
this Agreement as follows:
a) Upon the issuance of a Certificate of Occupancy for a Dwelling constructed upon
the Property and receipt by the EDA of an Affidavit signed by Great Buy Homes
and the Owner-occupant verifying the Owner-occupant’s intent to occupy the
Dwelling as a primary residence the Property shall be released from the restriction
stated in paragraph 1(a) above.
b) The Property shall be released from the restriction of paragraph 1(b) above on the
one (1) year anniversary of the date the Property was conveyed in compliance
with paragraph 1(a).
3. Waiver by EDA. Notwithstanding the restrictions stated above, the EDA may waive the
restrictions stated above upon a finding of hardship or other extenuating circumstances
sufficient to justify the waiver in its sole discretion.
4. Agreement to Assessment. Great Buy Homes acknowledges and agrees the EDA may
levy a $20,000.00 assessment against the Property if: (a) the Property is not improved
with a single family house on or before__________, 2017; and/or (b) if Great Buy
Homes sells the Property with the completed home to a non-owner-occupant in violation
of paragraph 1(a) above. Further, Great Buy Homes agrees the assessment provided by
this paragraph may be certified to Hennepin County as a special assessment and collected
with the real estate taxes against the Property in a single installment.
3
5. Waiver by Great Buy Homes. Great Buy Homes expressly waives objection to any
irregularity with regard to any assessment levied against the Property per this Agreement
or any claim that the amount thereof levied against the Property is excessive, together
with all rights to appeal the assessment in the courts.
6. Additional Remedies. It is further understood that if Great Buy Homes or an Owner-
occupant should breach their respective obligations under this Agreement, the EDA will
suffer irrevocable harm from which a recovery of money damages would be an
inadequate remedy. It is therefore agreed that the EDA shall be entitled, as a matter of
right, in any Court of competent jurisdiction to a mandatory injunction restraining and
enjoining pending litigation, as well as upon final determination thereof, from attempting
to violate or violating this Agreement. It is further agreed that the EDA’s rights to such
injunctive relief shall be cumulative with and in addition to any other rights, remedies or
actions which the EDA may have.
7. Great Buy Homes’ Successors. This Agreement shall not be terminated by:
a) The voluntary dissolution of Great Buy Homes or any parent subsidiary or
successor of Great Buy Homes;
b) Merger whereby Great Buy Homes (or such parent subsidiary or successor of
Great Buy Homes) is not the surviving or resulting entity; or
c) Any transfer of all or substantially all of the assets of Great Buy Homes. In the
event of any such merger or consolidation or transfer of assets, the provisions of
this Agreement shall inure to the benefit of and shall be binding upon the
surviving or resulting entity to which such assets shall be transferred.
8. Running of Benefits and Burdens. All provisions of this Agreement, including the
benefits and burdens run with the land and are binding upon and shall inure to the benefit
of the assigns and successors of the parties to this Agreement, such that the provisions of
this Agreement shall restrict the Property, and subdivision thereof, notwithstanding any
sale or transfer of the Property or any subdivision thereof to a third party.
9. Notices. Any notice to be given by a party to this Agreement shall be personally
delivered, sent by registered or certified mail, sent by confirmed electronic transmission,
or sent by a nationally recognized overnight courier that issues a receipt to the address set
forth for the other party in this section (or to such other address as may be designated by
notice to the other parties), and shall be deemed given upon the earlier of personal
delivery, the date postmarked, confirmation of electronic transmission, delivery to such
courier or the refusal to accept such service.
If to the EDA: EDA in and for the City of New Hope
Attn: Kirk McDonald
4401 Xylon Avenue North
New Hope, MN 55428
4
kmcdonald@ci.new-hope.mn.us
If to Great Buy Homes: GREAT BUY HOMES, INC.
Attn: Glenn Hammer
5790 195th Ave NW.
Anoka, MN 55303
________________________
10. Governing Law. All matters relating to the interpretation, construction, validity and
enforcement of this Agreement shall be governed by the internal laws of the State of
Minnesota.
11. Cumulative Rights. Each and all of the various rights, power and remedies of the EDA
in this Agreement shall be considered as cumulative with and in addition to any other
rights, powers, or remedies of EDA, and no one of them is exclusive to the others, or is
exclusive to any other rights, powers and remedies allowed by law. The exercise or
partial exercise of any right, power or remedy shall neither constitute the election thereof,
nor the waiver of any other power or remedy.
12. Amendment. This Agreement may be modified or amended only by a written
instrument executed by Great Buy Homes and the EDA.
IN AGREEMENT, the parties have executed these Restrictive Covenants effective the day and
year first above-written.
ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF NEW HOPE
By: ________________________________
Kathi Hemken
Its: President
Dated: _________________, 2016
By: ________________________________
Kirk McDonald
Its: Executive Director
Dated: _________________, 2016
GREAT BUY HOMES, INC.
By: ________________________________
Glenn Hammer
Its: President
Dated: _________________, 2016
5
STATE OF MINNESOTA
COUNTY OF HENNEPIN
}ss.
The foregoing instrument was acknowledged before me this ____ day of ____________,
2016, by Kathi Hemken and Kirk McDonald, the President and Executive Director of 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.
(Notary Public Seal)
_______________________________________
Notary Public
STATE OF MINNESOTA } ss.
COUNTY OF _____________
The foregoing instrument was acknowledged before me this ____ day of ________,
2016, by Glenn Hammer, the President of GREAT BUY HOMES, INC., a Minnesota
corporation, on behalf of said corporation.
(Notary Public Seal)
______________________________________
Notary Public
Drafted By:
JENSEN SONDRALL PERSELLIN & WOODS, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424-8811
P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-21605 - 6065 Louisana Ave. N. Rezone and Plat\Restrictive Covenant - 6067 Louisiana
Ave.docxc
15
Exhibit D
Assessment Agreements
See attached.
1
ASSESSMENT AGREEMENT
THIS AGREEMENT dated as of the ____ day of ___________, 2016, by and between
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”) and GREAT BUY
HOMES, INC., a Minnesota corporation (“Great Buy Homes”).
RECITALS
WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between
EDA and Great Buy Homes dated effective September ______, 2016 (“Purchase Agreement”)
Great Buy Homes purchased the real property located at 6065 Louisiana Avenue North in the
City of New Hope from EDA, which property is legally described as Lot 2, Block 1 McDonalds
Addition to City of New Hope, Hennepin County, Minnesota, (“Property”) with a closing on
September ___, 2016; and
WHEREAS, Great Buy Homes has committed to constructing a new residential home on
the Property pursuant to the terms of the Purchase Agreement; and
WHEREAS, the EDA and Great Buy Homes have agreed Great Buy Homes shall
complete the construction of the home as described in the Purchase Agreement within one (1)
year of the date of closing on the purchase of the Property; and
WHEREAS, the EDA and Great Buy Homes have further agreed the EDA may levy a
$20,000.00 assessment against the Property prior to Great Buy Homes sale of the Property with
the completed home if it is not being sold to an owner-occupant. Further, said assessment may
be certified to Hennepin County for collection with real estate taxes payable in a single
installment.
AGREEMENT
1. Completion of Project. Great Buy Homes hereby covenants and agrees with the EDA
that the new home on the Property shall be fully completed on or before _____________,
2017. Fully completed shall mean the Property shall be improved with a new single
family house.
2
2. Agreement to Assessment. Great Buy Homes acknowledges and agrees the EDA may
levy a $20,000.00 assessment against the Property if: (a) the Property is not improved
with a single family house on or before _____________, 2017; and/or (b) if Great Buy
Homes sells the Property with the completed home to a non-owner-occupant. Further,
Great Buy Homes agrees the assessment provided by this paragraph may be certified to
Hennepin County as a special assessment and collected with the real estate taxes against
the Property in a single installment.
3. Waiver by Great Buy Homes. Great Buy Homes expressly waives objection to any
irregularity with regard to any assessment levied against the Property per this Assessment
Agreement or any claim that the amount thereof levied against the Property is excessive,
together with all rights to appeal the assessment in the courts.
4. Great Buy Homes’ Successors. This Agreement shall not be terminated by:
a) The voluntary dissolution of Great Buy Homes or any parent subsidiary or
successor of Great Buy Homes;
b) Merger whereby Great Buy Homes (or such parent subsidiary or successor of
Great Buy Homes) is not the surviving or resulting entity; or
c) Any transfer of all or substantially all of the assets of Great Buy Homes. In the
event of any such merger or consolidation or transfer of assets, the provisions of
this Agreement shall be binding upon the surviving or resulting entity to which
such assets shall be transferred.
5. Notices. Any notice to be given by a party to this Agreement shall be personally
delivered, sent by registered or certified mail, sent by confirmed electronic transmission,
or sent by a nationally recognized overnight courier that issues a receipt to the address set
forth for the other party in this section (or to such other address as may be designated by
notice to the other parties), and shall be deemed given upon the earlier of personal
delivery, the date postmarked, confirmation of electronic transmission, delivery to such
courier or the refusal to accept such service.
If to the EDA: EDA in and for the City of New Hope
Attn: Kirk McDonald
4401 Xylon Avenue North
New Hope, MN 55428-4898
kmcdonald@ci.new-hope.mn.us
If to Great Buy Homes: GREAT BUY HOMES, INC.
Attn: Glenn Hammer
5790 195th Ave N.
Anoka, MN 55303
_______________________
3
6. Governing Law. All matters relating to the interpretation, construction, validity and
enforcement of this Agreement shall be governed by the internal laws of the State of
Minnesota.
7. Cumulative Rights. Each and all of the various rights, power and remedies of the EDA
in this Agreement shall be considered as cumulative with and in addition to any other
rights, powers, or remedies of the EDA, and no one of them is exclusive to the others, or
is exclusive to any other rights, powers and remedies allowed by law. The exercise or
partial exercise of any right, power or remedy shall neither constitute the election thereof,
nor the waiver of any other power or remedy.
8. Amendment. This Agreement may be modified or amended only by a written
instrument executed by Great Buy Homes and the EDA.
IN AGREEMENT, the parties have executed this Restrictive Covenant effective the day and year
first above-written.
ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF NEW HOPE
By: ________________________________
Kathi Hemken
Its: President
Dated: ___________ ____, 2016
By: ________________________________
Kirk McDonald
Its: Executive Director
Dated: ___________ ____, 2016
GREAT BUY HOMES, INC.
By: ________________________________
Glenn Hammer
Its: President
Dated: ___________ ____, 2016
STATE OF MINNESOTA
COUNTY OF HENNEPIN
}ss.
The foregoing instrument was acknowledged before me this ___ day of ___________,
2016, by Kathi Hemken and Kirk McDonald, the President and Executive Director of 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.
(Notary Public Seal)
_______________________________________
Notary Public
4
STATE OF MINNESOTA } ss.
COUNTY OF ____________
The foregoing instrument was acknowledged before me this ____ day of ____________,
2016, by Glenn Hammer, the President of GREAT BUY HOMES, INC., a Minnesota
corporation, on behalf of said corporation.
(Notary Public Seal)
______________________________________
Notary Public
Drafted By:
JENSEN SONDRALL PERSELLIN & WOODS, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424-8811
P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-21605 - 6065 Louisana Ave. N. Rezone and Plat\Assessment Agreement - 6065
Louisiana Ave. N.docx
1
ASSESSMENT AGREEMENT
THIS AGREEMENT dated as of the ____ day of ___________, 2016, by and between
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”) and GREAT BUY
HOMES, INC., a Minnesota corporation (“Great Buy Homes”).
RECITALS
WHEREAS, pursuant to that certain Purchase and Redevelopment Agreement between
EDA and Great Buy Homes dated effective September ______, 2016 (“Purchase Agreement”)
Great Buy Homes purchased the real property located at 6067 Louisiana Avenue North in the
City of New Hope from EDA, which property is legally described as Lot 1, Block 1 McDonalds
Addition to City of New Hope, Hennepin County, Minnesota, (“Property”) with a closing on
September ___, 2016; and
WHEREAS, Great Buy Homes has committed to constructing a new residential home on
the Property pursuant to the terms of the Purchase Agreement; and
WHEREAS, the EDA and Great Buy Homes have agreed Great Buy Homes shall
complete the construction of the home as described in the Purchase Agreement within one (1)
year of the date of closing on the purchase of the Property; and
WHEREAS, the EDA and Great Buy Homes have further agreed the EDA may levy a
$20,000.00 assessment against the Property prior to Great Buy Homes sale of the Property with
the completed home if it is not being sold to an owner-occupant. Further, said assessment may
be certified to Hennepin County for collection with real estate taxes payable in a single
installment.
AGREEMENT
1. Completion of Project. Great Buy Homes hereby covenants and agrees with the EDA
that the new home on the Property shall be fully completed on or before _____________,
2017. Fully completed shall mean the Property shall be improved with a new single
family house.
2
2. Agreement to Assessment. Great Buy Homes acknowledges and agrees the EDA may
levy a $20,000.00 assessment against the Property if: (a) the Property is not improved
with a single family house on or before _____________, 2017; and/or (b) if Great Buy
Homes sells the Property with the completed home to a non-owner-occupant. Further,
Great Buy Homes agrees the assessment provided by this paragraph may be certified to
Hennepin County as a special assessment and collected with the real estate taxes against
the Property in a single installment.
3. Waiver by Great Buy Homes. Great Buy Homes expressly waives objection to any
irregularity with regard to any assessment levied against the Property per this Assessment
Agreement or any claim that the amount thereof levied against the Property is excessive,
together with all rights to appeal the assessment in the courts.
4. Great Buy Homes’ Successors. This Agreement shall not be terminated by:
a) The voluntary dissolution of Great Buy Homes or any parent subsidiary or
successor of Great Buy Homes;
b) Merger whereby Great Buy Homes (or such parent subsidiary or successor of
Great Buy Homes) is not the surviving or resulting entity; or
c) Any transfer of all or substantially all of the assets of Great Buy Homes. In the
event of any such merger or consolidation or transfer of assets, the provisions of
this Agreement shall be binding upon the surviving or resulting entity to which
such assets shall be transferred.
5. Notices. Any notice to be given by a party to this Agreement shall be personally
delivered, sent by registered or certified mail, sent by confirmed electronic transmission,
or sent by a nationally recognized overnight courier that issues a receipt to the address set
forth for the other party in this section (or to such other address as may be designated by
notice to the other parties), and shall be deemed given upon the earlier of personal
delivery, the date postmarked, confirmation of electronic transmission, delivery to such
courier or the refusal to accept such service.
If to the EDA: EDA in and for the City of New Hope
Attn: Kirk McDonald
4401 Xylon Avenue North
New Hope, MN 55428-4898
kmcdonald@ci.new-hope.mn.us
If to Great Buy Homes: GREAT BUY HOMES, INC.
Attn: Glenn Hammer
5790 195th Ave N.
Anoka, MN 55303
_______________________
3
6. Governing Law. All matters relating to the interpretation, construction, validity and
enforcement of this Agreement shall be governed by the internal laws of the State of
Minnesota.
7. Cumulative Rights. Each and all of the various rights, power and remedies of the EDA
in this Agreement shall be considered as cumulative with and in addition to any other
rights, powers, or remedies of the EDA, and no one of them is exclusive to the others, or
is exclusive to any other rights, powers and remedies allowed by law. The exercise or
partial exercise of any right, power or remedy shall neither constitute the election thereof,
nor the waiver of any other power or remedy.
8. Amendment. This Agreement may be modified or amended only by a written
instrument executed by Great Buy Homes and the EDA.
IN AGREEMENT, the parties have executed this Restrictive Covenant effective the day and year
first above-written.
ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF NEW HOPE
By: ________________________________
Kathi Hemken
Its: President
Dated: ___________ ____, 2016
By: ________________________________
Kirk McDonald
Its: Executive Director
Dated: ___________ ____, 2016
GREAT BUY HOMES, INC.
By: ________________________________
Glenn Hammer
Its: President
Dated: ___________ ____, 2016
STATE OF MINNESOTA
COUNTY OF HENNEPIN
}ss.
The foregoing instrument was acknowledged before me this ___ day of ___________,
2016, by Kathi Hemken and Kirk McDonald, the President and Executive Director of 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.
(Notary Public Seal)
_______________________________________
Notary Public
4
STATE OF MINNESOTA } ss.
COUNTY OF _____________
The foregoing instrument was acknowledged before me this ____ day of ____________,
2016, by Glenn Hammer, the President of GREAT BUY HOMES, INC., a Minnesota
corporation, on behalf of said corporation.
(Notary Public Seal)
______________________________________
Notary Public
Drafted By:
JENSEN SONDRALL PERSELLIN & WOODS, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424-8811
P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-21605 - 6065 Louisana Ave. N. Rezone and Plat\Assessment Agreement - 6067
Louisiana Ave. N.docx
16
Exhibit E
Request for Proposal (“RFP”) Guidelines
See attached.
17
Exhibit F
Buyer’s Proposed Plans
See attached.
P:\Attorney\SAS\1 Client Files\2 City of New Hope\99-21605 - 6065 Louisana Ave. N. Rezone and Plat\Purchase and Redevelopment
Agreement 6065 Louisiana.docxc