EDA 04/28/03OFFICIAL FILE COPY
CITY OF NEw HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday, April 28, 2003
President W. Peter Enck
Commissioner Sharon Cassen
Commissioner Don Collier
Commissioner Mary Gwin-Lenth
Commissioner Steve Sommer
Call to Order
Roll Call
Approval of Regular Meeting Minutes of March 10, 2003
Motion Approving Revision to Section 8 Administrative Services Contract Between
the Metropolitan Council and the City of New Hope
Resolution Authorizing an Exclusive Negotiation Period Between the New Hope
Economic Development Authority and the Ryland Group, Inc. for the Winnetka
Avenue Area (Improvement Project No. 729)
Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE. MINNESOTA 55428
EDA Minutes
Regular Meeting
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
IMP. PROJECT 743
(formerly #597)
Item 4
New Hope EDA
Page 1
March 10, 2003
Ci.ty Hall
President Enck called the meeting of the Economic Development Authori .ty to order
at 8:22 p.m.
Present:
W. Peter Enck, President
Sharon Cassen, Commissioner
Don Collier, Commissioner
Mary Gwin-Lenth, Commissioner
Steve Sommer, Commissioner
Motion was made by Commissioner Sommer, seconded by Comrmssioner Cassen.
to approve the Regular Meeting Minutes of February 24, 2003. All present
voted in favor. Motion carried. '
President Enck introduced for discussion Item 4, Discussion Regarding Updated
Proposal and Continued Interest by Quest Real Estate, Inc./Plymouth Heights Pet
Hospital on City-Owned Property at 9200 49t~ Avenue North (Improvement Project
No. 743).
Mr. Kirk McDonald, Director of Community Development, stated in follow up to
the February 10t~ discussion staff and consultants have met again with
representatives of the Plymouth Heights Pet Hospital. He stated they have submitted
a more detailed proposal. Staff requests that the EDA provide direction to staff as to
how to respond to this updated proposal and to Plymouth Heights Pet Hospital's
continued interest in the city-owned property at 9200 49t~ Avenue. Mr. McDonald
stated the other potential development for this property was Amcon Construction,
but they have not pursued the matter further as of this date.
Mr. McDonald cited the most recent correspondence submitted by Quest Real
Estate, Inc., on behalf of Plymouth Heights Pet Hospital, which states that "This
letter shall serve to express the continued interest of my client: Mr. Fleming, in
purchasing the parcel of land at 9200 49t~ Avenue North in New Hope for
construction of a pet hospital. We were pleased to learn the EDA and City Council
members of New Hope have indicated an interest in our initial development
proposal and would like to pursue the matter in more detail."
Mr. McDonald stated the applicant has submitted a background narrative on
Plymouth Heights Pet Hospital, a proposed site plan prepared by Paul Meyer
Architects, Inc., and a proposed m'age sketch, an estimate from Dobszenski & Sons,
Inc. for soil correction and site preparation work at the subject property.
Mr. McDonald stated Plymouth Heights Pet Hospital is seeking to acquire the
property "as is" from the City of New Hope for $61,500 ($4.00/square foot for the
property less soil correction costs). He noted the city would retain one-third of the
site for a storm water pond. He commented that Plymouth Heights Pet Hospital
currently serves over 6,000 active patients including more than 700 New Hope
families and represents a valuable asset to the community. Mr. McDonald expressed
support for the project as the applicant, Mr. Fleming, is prepared to move
expeditiously on the development plans. He stated if the EDA is interested in
pursuing Mr. Fleming's proposal for purchasing and developing the subject
March 10, 2003
IMP. PROJECT 740
(formerly #665)
Item 5
New Hope EDA
Page 2
property, they would provide an "Option Agreement" on the property for a
maxmaum term of no more than ninety days. This would allow sufficient time for
them to review documents, prepare plans and obtain the necessary, approvals before
closing on the property. Mr. McDonald stated the developer would like a tentative
agreement from the EDA at this time before they incur additional expenses.
Mr. McDonald stated staff is supportive of the development and recommends
meeting with the city's financial consultant to discuss the financial implications of
the pr°Ject and taxes that would be generated by the project.
He stated representatives of the Plymouth Heights Pet Hospital are in attendance
and are available to answer questions.
President Enck questioned whether the developer could use the pond for pan of
their green space requirements. Mr. McDonald responded affirmatively.
The EDA expressed support for the project.
Commissioner Cassen disclosed that she has had past business experiences with Mr.
Ludovissie of Quest Real Estate. She also mentioned that she is a pet hospital
customer, but there is no conflict of interest.
Commissioner Cassen questioned the accessibility of the pond by the city. Mr.
McDonald stated the city would require a 20-foot wide access easement between
49t~ Avenue and the pond.
Mr. McDonald pointed out that the property is zoned I-1, Industrial, and pet
hospitals and veterinary clinics are not currently listed as permitted or conditional
uses in the I District. However, staff and consultants are currently working on a
modification to the code to allow animal day cares in the I District and the Planning
Consultant believes this use would also be appropriate for that Zoning District.
Commissioner Sommer expressed support for the project but acknowledged concern
regarding the sales price. He mentioned the city purchased the property six years
ago for $195,000, and a higher sales price would recoup some of the city's expense.
President Enck pointed out that tonight's action is only the beginning of the process.
The EDA unanimously expressed support for the project and directed staff to work
with Quest Real Estate on behalf of Plymouth Heights Pet Hospital.
President Enck introduced for discussion Item 5, Discussion Regarding Joint
Development Proposal for City-Owned Property at 7500-7528 42nd Avenue North,
the former Electronic Industries Site (Improvement Project No. 740).
Mr. Ken Doresky, Community Development Specialist, stated staff is requesting
EDA discussion and direction regarding a joint development proposal from Retail
Site Development Services for the city-owned site at 7500-7528 42nd Avenue North.
The development proposal is for two uses: a Culver's restaurant on the western
portion of the site and three office condominium buildings (with seven separate
ownership units) on the eastern portion of the site.
He stated the intention of the presentation is to inform the EDA of the proposal and
to seek direction for further action. He stated representatives from both parties are in
the audience.
Mr. Doresky stated the City has been working for several years to initiate the
environmental cleanup process and subsequent commercial redevelopment of this
site. He reviewed costs of $500,000 for the 7540 42°a Avenue property (purchase
price of $450,000 plus demolition costs of $50,000); and $71,000 for 7516 42na
March 10, 2003
It e!
New Hope EDA
Page 3
Avenue (purchase price of $40,000 plus demolition costs of $31.000): and $482.000
for acquisition of 7500 42nd Avenue North. The total cost for the three properties
was $ I. 1 million. Mr. Dan Donahue, City Manager. clarified that these costs were
not paid by property, tax dollars but rather by the redevelopment tax increment
district.
Mr. Doresky stated in conjunction with cleanup funding grant applications
submitted during the spring of 2002, the Council approved a Request for Proposal
(RFP) process for the site. As a result of the RFP, the City received a proposal for
the office condominium component of the current prgposal. Using the office
condominium proposal in the cleanup grant applications, the Department of Trade
and Economic Development (DTED) rated New Hope's application #1 in the State
of Minnesota due to the economic development and job creation potential. DTED
subsequently approved a fully funded grant in partnership with a Hennepin Count,
approved grant. Culver's Restaurant/Retail Site Development Services came later in
the process and staff suggested they provide a joint development proposal with the
office condominium developer.
He reviewed a preliminary site plan showing a Culver's Restaurant on the western
portion of the site and the office condominiums along the railroad tracks on the east
side of the property. He stated the proposal states:
"RSDS will serve as the coordinator of the New Hope project with Dexter
Marston acting as the contact person. Dexter Marston is a licensed real
estate broker in the State of Minnesota. RSDS's fee will be $40,000 for the
services related to the New Hope project. The services include: providing
buyers for the site (JSC Development (Culver's) and Frey Development
(Office Condominiums)) and overseeing the project through City approvals
and closing. The City will be responsible for this fee and should include
this cost with their other expenses when determining the value of the land.
At this time I expect that the two prospective buyers will represent
themselves in negotiations for the site. If either party chooses to have
RSDS represent their interests during the negotiations, the City of New
Hope will be informed of that change."
Mr. Doresky stated staff is supportive pursuing the redevelopment of this site with
this development proposal, but has some concern about the fee being requested.
Staff recommends that the EDA authorize staff to pursue this matter further and
meet with the City's financial consultant and the developer to discuss the financial
implications of the project. Staffwould propose that the City and the developer split
the cost of the financial analysis 50/50 on this site, due to the fact that it is City
owned. Staffwill then return to the EDA for further direction.
Discussion ensued regarding the RSDS's proposed fee of $40,000. It was noted that
the city has never paid this type of a fee in the past.
President Enck expressed concern about three separate buildings. He also expressed
his reluctance to approve a $40,000 real estate service fee.
Commissioner Cassen pointed out if an agent is representing a buyer/developer,
they typically are the ones to pay for the real estate commission; however, it is
negotiable. She commented that the $40,000 fee should go into the project cost and
if Mr. Marston is representing the developers then he could negotiate it with them.
Commissioner Cassen was supportive of the development and layout with three
separate buildings for office condominiums.
Commissioners Collier and Sommer also expressed support for the project.
Conu~,issioner Sommer commented that he likes the ownership option for small
businesses.
March 10, 2003
ADJOURNMENT
President Enck acknowledged agreement to the concept but provided the following
concerns regarding the configuration: excessive curbcuts, poor traffic circulation,
the three office buildings back up to the railroad tracks with no access to the rear,
and lack of green space. He also noted the need for a property owners association
similar to a townhome association.
The EDA was supportive of staff working with the developers, but clarified that the
EDA objects to payment of a $40,000 fee.
Mr. Donahue interjected that a current planning study of the 42"~' Avenue area
includes an office analysis that will determine if there is a need for office space. Mr.
McDonald stated the information may be available within two months.
Commissioner Cassen noted that Frey Development may have already conducted a
survey.
Mr. Bernie Frey, Frey Development, was recognized. He stated the office
condominiums are geared for smaller businesses that may desire to own rather than
lease property and cannot financially afford to purchase property and construct a
single user building. He stated a unit size can range from 1,300 to 3,000 square feet
and the typical users are professional offices. He reported on the successfulness of
past projects. He pointed out that a building with three units is the most appealing
environment as the middle unit has a balcony and each of the side units has side
windows. He stated the average price is $125-130 per square foot. There would be
an office association similar to townhome association agreements.
Mr. John Seibert, President of JCS Development Inc., was recognized. He stated
they are very interested in the site for construction of a Culver's Restaurant. He
asked the EDA to reconsider its position on the realtor fee due to the uniqueness of
the situation. He noted the city is selling the property and the seller normally pays a
realtor commission.
The EDA directed staffto proceed to work out issues with the developers.
Motion was made by Commissioner Collier, seconded by Commissioner Sommer,
to adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 9:17 p.m.
?~ctfully submitted,
Valerie Leone
City Clerk
New Hope EDA
Page 4
March 10, 2003
REQUEST FOR ACTION
Originating Department '"--'------- Approved for Agenda Agenda Section
Community Development 4-28-03 EDA
-' Item No.
By: Kirk McDonald By: ,, ~ "J 4
MOTION APPROVING REVISION TO SECTION 8 ADMINISTRATIVE SERVICES CONTRACT BETWEEN
THE METROPOLITAN COUNCIL AND CITY OF NEW HOPE
~,EQUESTED ACTION
Staff is requesting that the EDA approve a motion approving a revision to the Section 8 Administrative
Services Contract between the Metropolitan Council and the City of New Hope. When the number of client
contracts was at a lower level in the mid-1990s, the New Hope Section 8 Coordinator took on the additional
workload of administering contracts for other neighboring cities to bring in additional revenue for the New
Hope program. Client contracts are now at a very high level and staff is requesting a revision in the
Administrative Services Contract for New Hope to stop performing administrative services for the 128
contracts in Maple Grove and shift the workload back to Metro HRA staff. This revision will help to alleviate the
workload of the Section 8 Coordinator and shift a portion of the revenue back to Metro HRA, but will still
~rovide adequate financial resources to support the New Hope Section 8 Program. Metro HRA requires a 90-
day notification requirement for contract changes and a formal contract amendment would be prepared for
EDA consideration in the future if this motion is approved.
POLICY/PAST PRACTICF
In the past, the EDA has approved modifications to the Metro HRA Section 8 Administrative Services Contract
depending on the workload and number of client cases being serviced. The last modification to the contract
was discussed by the EDA in November 2001, and approved in March 2002, when the 41 contracts being
managed by New Hope for the City of Edina were turned back to Metro HRA due to similar workload issues.
BACKGROUND
City staff is requesting that the Economic Development Authority approve a revision to the Section 8 Services
Contract with the Metropolitan Council that would allow New Hope to cease performing the administration
services for the Section 8 Program clients in the City of Maple Grove due to the increased number of contracts
that New Hope is currently administering. In the past, amendments or revisions to the Section 8 Administrative
Services Contract with the Metropolitan Council have been formally considered and approved by the EDA.
-.----_ (cont.)
TO: ~
Request for Action
Page 2
4-28-03
The City of New Hope has contracted with the Metropolitan Council for the past 20+ years to administer the
Section 8 Housing Assistance Payments Program on a local level. The City employs a full-time Section 8
Housing Coordinator to administer the program and reimbursements from the Met Council/HUD cover all costs
of the program and position. The contract is revised periodically when the reimbursement rate changes or
when services and/or clients are added or deleted. In the past, New Hope has generally administered
between 250-300 client contracts and the Metro HRA feels that this is the general range for the maximum
number of clients per Section 8 Coordinator. In addition to the financial considerations, from staff's viewpoint,
the other advantages of having a program coordinated at the local level include frequent access to assess
conditions in multiple family dwelling units, convenience for program participants coming to City Hall rather
than St. Paul, and the program has provided an excellent means of maintaining good communications and
working relationships with the owners and managers of apartment complexes in the City.
1996 Contract Amendment
In 1994 and 1995, the number of Section 8 contracts administered for New Hope residents had
decreased to approximately 240 contracts, due in part to newly adopted portability requirements. The City
receives less revenue to cover the costs of the program/position with a reduced number of contracts and it has
always been the position of the City that the program would be self-supportive and that the cost to administer
the program would be covered by revenues received from Metro HRA.
In 1994, when contract discussions were taking place, city staff indicated to Metro HRA representatives that
the City would have an interest in taking on additional contracts from neighboring cities to increase program
revenue. It was determined that additional outside contracts from neighboring cities would involve only
administrative services, with Section 8 clients coming to the New Hope City Hall for income verifications, etc.
The City would provide no inspection services for clients residing outside of New Hope, as that was
determined to be Metro HRA's responsibility. The Metro HRA indicated that it would take the City's interest in
assuming the administrative work for additional contracts into consideration.
In December 1995, due to several staff position vacancies at the Metro HRA in St. Paul, Metro HRA contacted
the City to see if the City was still interested in assuming administrative responsibility for additional contracts.
City staff responded in the affirmative and at the January 22, 1996, New Hope EDA meeting, the EDA
approved an amendment to the Metro HRA contract stating that the City of New Hope would
administer the Section 8 contracts from the following cities:
City Number of Contracts
Edina 20 contracts
Golden Valley 16 contracts
Maple Grove 1~5 contracts
Total 51 contracts
The additional revenue to the New Hope program with these additional contracts helped to ensure that the
program was self-supporting.
1997 Contract Amendment
In the spring of 1997, the City of Osseo lost the individual that administered the 23 Section 8 contracts for
that city. Metro HRA contacted New Hope to inquire if the City was interested in assuming additional contracts
under the same terms and conditions as the 1996 contract amendment. The City responded that we could
take on the additional contracts at that time and on May 27, 1997, the EDA approved an amendment to the
contract adding the services for the additional clients.
Request for Action Page 3 4-28-03
2001 Contract Amendment
In November 2001, staff reported to the EDA that due to a recent marketing campaign by the Metro HRA on
the Section 8 Program, the program was at 100% utilization. The New Hope Section 8 Coordinator was
administering 420 contracts, as follows:
City Number of Contracts
Golden Valley 21 contracts
Edina 41 contracts
Maple Grove 67 contracts
Osseo 21 contracts
Subtotal 150 contracts
New Hope
.270 contracts
Total 420 contracts
At that time, the Metro HRA was in the process of re-assigning caseloads among its staff and were aware of
the heavy caseload in New Hope. Staff recommended, and the EDA approved, returning the 41 Edina
contracts back to the Metro HRA at that time. A 90-day notice was provided in November 2001 and the
contracts were returned to Metro HRA as of March 1, 2002. '
.Current Status of Contracts 2003
Due to the continued success of marketing the Section 8 Program by the Metro HRA, the metro-wide program
continues at the 100% utilization level. The New Hope Section 8 Coordinator is now administering 46:3 clients,
the highest number ever (and 43 more cases than before the Edina contracts were dropped). The contracts
currently being administered break down as follows:
_City
Golden Valley
Maple Grove
Osseo
New Hope
Subtotal
Number of Contracts
33 contracts
128 contracts
1~4 contracts
175 contracts
288 contracts
Total 463 contracts
In staff's opinion, this is too many contracts for one staff person to effectively manage, and the Section 8
Coordinator has requested consideration of a reduction in the number of contracts. Preliminary discussions
have been held with Metro HRA about shifting the 128 Maple Grove contracts back to Metro HRA and Metro
HRA is agreeable to taking back the contracts. With this reduction, the total amount of contracts managed by
New Hope would be 463 - 128 = 335. While the return of the Maple Grove contracts back to Metro HRA will
decrease revenues for the program, revenues will still exceed expenses.
Due to the increased utilization of the Section 8 Program on a metro-wide basis and the impact on the
workload of the New Hope Section 8 Coordinator, staff requests that the EDA give favorable consideration to
this request and approve a reduction in the administration of outside contracts. Staff requests authorization to
give the Metro HRA a 90-day notice on the 128 Maple Grove contracts. Staff desires to give the 90-day notice
at this time so that the notification process can be initiated by May 1 so the contracts could be returned by July
31. In the interim three-month period, other options may be discussed with the City Manager to resolve this
issue, such as the hiring of an additional support person funded out of the HRA budget, however, staff does
not desire to hold off on the notification process until after those options are considered. If a different
resolution to the issue is reached, the 90-day notification process could be terminated.
Request for Action
Page 4
4-28-03
FUNDING
The impact of this contract revision is explained above and would be minimal, as revenues would still exceed
expenses in 2003 and future years.
ATTACHMENTS
· Memo from Section 8 Coordinator
· Excerpts 2003 HRA Budget
· January2000 Contract Amendment
McDonald Kirk
From: Isaacson Marlene
Sent: Wednesday, April 02, 2003 8:53 AM
To: McDonald Kirk
Subject: Workload
About a year ago we gave the Edina contracts back to Metro HRA due to the workload. At that time the contracts were
then reduced to 400. When I started 13 years ago a full caseload was 220-240 contracts. At our current numt~er of 463
the caseload is becoming very difficult to manage. You are aware I am putting in alot of overtime hours to get the work
done. I feel a strong obligation to owners and clients and their need to have the information they are required to have as
participants in the Section 8 rent assistance program.
Per the report I gave you last week other communities with similar caseloads have regular support staff to help with the
work. As a one person staff I feel we need to reduce our caseload. The support supplied by Gail is a help i~ut not enough
to continue with 463 clients. If there are other options we can look at perhaps we can sit down and talk about them.
Currently there are 288 clients under contract in New Hope, 33 in Golden Valley, 14 in Osseo and 128 in Maple Grove.
Turning back the Maple Grove contracts seems the most logical if we decide to proceed. I don't know what impact this
would have on the budget. I have spoken with Kathy Kline to give her a heads up on my proposal. Her concern was
finding someone in their office to take on an additional 128 clients. She also reminded me that we are required by contract
to give them a 90 day notice to return contracts.
Please let me know what you think and where we go from here.
BUDGET FORM I
FUND NUMBER: 11
DEPARTMENT: HRA Administration
EXPENDITURE CODE: 92
PROGRAM DESCRIPTION AND RESPONSE TO BUDGET DIRECTIVE:
The HRA Administration program provides the support services for the Section 8 Rental Assistance
Program. The Metropolitan Council contracts for services with the City of New Hope for
administrative support to manage the Section 8 program. This includes processing applications,
income verifications, inspections, lease-up information and referral.
The City is currently reimbursed $26.82 per month/per each New Hope certificate/voucher, which
will result in an estimated income of $97,515 when the hard-to-house reimbursement is added.
In January 1996, 1997 and 2002, the City Council approved amendments to the contract with the
Metropolitan Council and agreed to provide administrative support services for Section 8 clients in
nearby communities (Golden Valley, Maple Grove, and Osseo). The amendment calls for New
Hope to provide administrative services to approximately 135 out-of-city Section 8 clients, which will
result in additional revenue of $39,827. Revenues have increased due to an administrative
reimbursement increase received from the Metropolitan Council in January 2000.
Total revenue, including investment interest earnings, are anticipated to be $140,342 in 2003, which
exceeds the $107,706 budgeted for expenses.
The Housing Coordinator is Currently very busy managing a total of 440 contracts.
2-12
BUDGET FORM II
DEPARTMENT:
HRA AcImimstration
ESTIMATE OF REVENUE AND SOURCES 92
DESCRIPTION 2002 2003
AMOUNT AMOLINT
297 New Hope Vouchers/Certificates x $26.82 -
Reimbursement per unit for 12 months 77.532 95,586
4 New Hope Portability Vouchers/CertJficates at $21.45
Reimbursement per unit for 12 months 4,771 1.029
'135 Outside Vouchers/Certificates x $26.82
Reimbursement (aclmin. only) per unit for 11 months 41,002 39,827
Outside Portability Vouchers/Certificates
(Merged with outside vouchers)
Hard-to-House Reimbursement Averages
1 unit ;)er month x $75 x 12 months 540, 900
investment Interest
3,000
*Outside clients are from the following cities:
Golden Valley 26
MaDle Grove 95
Osseo 18
Total 139
TOTAL
....--__.__ 123,845 140,34~
2.-14
BUDGET FORM V
DETAIL: SUPPLIES/SERVICES/CHARGES
BUDGET REQUEST
DEPARTMENT: HRA Adminsitration
EXPENDITURE CODE: 92
ACCOUNT LINE ITEM DESCRIPTION 2002 2003
6210 General Office Supplies 800 800
7010 Audit Expenses 550 550
7160 Postage 3,300 3,600
7270 Mileage 300 300
7350 General Liability Insurance 389 455
7500 Building Facility Rental 1.575 1.680
7525 Office Equipment Rental 1,530 1.650
7540 IT Internal Service Fund (Computer/Support) 1,004 1.244
7610 IDues and Subscriptions 500 500
NAHRO, MALFHA, MN Multi Housing, and
Miscellaneous Organization Dues
7630 Training 2,000 2.000
Includes training for:
Community Development Director,
Community Development Specialist
Housing Representative
General Inspector
TOTAL 11,948 12,779
2-17
BUDGET FORM III
PERSONNEL
DEPARTMENT:
EXPENDITURE CODE:
BUDGETED / PROPOSED
NUMBER OF HOURS HOURS
POSITION EMPLOYEES 2002 2003
Regular/Full Time
Community Development Director 1 208 208
Housing Coordinator 1 2,080 2,080
Inspector 1 686 686
Customer Service Rep/Part-Time 1 416 416
Dffice Support Specialist 1 208 208
TOTAL
HRA Administration
BENEFIT
RATE
2003
9,334
50,047
22,740
8.799
4,007
94,927
92
CHANGE
IN
BUDGETED
HOURS
FOR CHANGE: -'-'----'
10% of Office Support Specialist's time shifted from Insl~ections to HRA Budget
to provide cledcal assistance to Section 8 Housing Coordinator, starting with 2002 bu~lget.
2-15
R6509BUD NH001A
F~SCal Pe,-iod: 12 / 02
Level Of Ro~lup 7
Object ~x~ I D~scti0tion
CITY OF NEW HOPE
Buo'ge! Re;x:,rl
12/10/02 9:00:33
Page - 5
1999 2000 2001 12/31102 2002 2003 2003
Actual Actual Actual YTD Final Reeueste~ A.o~ve~
Amoun! Amount Amount Actual Bu0get B,u~e: Buoge!
09011 HRA Aclministra*.on
5501 Expenditures
5505 Cest of Go, ds Sold
6005 Pemonal Serv~es
6101 Wages/Full'lime 45.337 43.858 46.130 46.403 59.888 62.5~4 62.584
6102 Wages/Overbme 1.155 1.288 3.111 3,234
6104 Wage,Seasonal 488
6111 Leave Exper~e Ch~ 5.810 5.599 5.845 5.8~9 10.569 11.044 11.044
6122 PERA-City Part 2.612 2.572 2.778 2.976 3.697 4.072 4.072
6124 RCA-City Part 3.601 3.456 3.730 3.957 5.390 5.633 5.633
6132 Health Insurance 7.343 7.462 8.050 7.573 10.543 11.093 11.093
6151 Wrl~$ Co~o C~' 266 200 206 259 374 501 501
6005 Pemonal Services 66.145 64.435 69.849 70.779 90.661 94.g27 ~.g27
6205 Supl~ies/Mate~ials
8210 Sump/y/office
6205 SuplNiea~atenals
480 513 579 417 800
480 513 579 417 800
800 ~00
7005 Conic'acted Services
7010 Audit Sewice 550 550 550 550 550 550 550
7160 Postage Exp 2.635 2,877 3,181 3,248 3.300 3.600 3,600
7270 Employee Mileage 22! 308 167 141 300 300 300
7350 Genl Liability Ins 500 411 420 396 389 455 455
7500 Rent~/Bldg 1.519 1.519 1.580 1.560 1.575 1.680 1.680
7525 ReNal/Ofrx~ E~lmt 1.548 1.805 2.028 1.497 1.530 1.650 1.6.50
7540 IT Department Charge 1.008 1,00,4 1,244 1.244
7610 Dues/Sub~criptn 410 325 465 465 500 500 500
7630 Training/Seminars 1.308 882 296 147 2.000 2.000 2.000
7005 Conlracted Semmes 8.892 8.676 8.669 9.012 11.148 1%979 11.979
77os Dep~'~on
7805 Debt Sewice
7905 CaptJ/Const OutJay
5501 ~nditures
8001 O~hr Financg Sources
8005 Olher InCal~e
75,317 73.624 79.097 80.207
75,317 73,624 79,097 80,207
8501 Othr Financg Uses
8505 Other Expenses
09011 HRA Administration
102,609 107,706 107,706
102.609
107.706 107,706
2-13
Contract No. C-99-66
SECTION $ HOUSING ASSISTANCE PAYMENTS PROGRAM
CONTRACT FOR AD/VI/NISTRA~TVE SERV/CES
CITY OF NEW HOPE
THIS ADMINISTRATIVE SERVICES CONTRACT is made and entered into bx' the
Metropolitan Council ("Council") and the Ci~ of New Hope ("Contractor").
WHEREAS, the Council is authorized by Minnesota Statutes section 473.195 to function as a
housing and redevelopment authority throughout the seven-county metropolitan area and excrc,ses
its statutory authority through its Housing and Redevelopment Authority unit; and
WHEREAS, the Council has entered into one or more Annual Contributions Contracts ("ACC")
with the U.S. Department of Housing and Urban Development ("H-tYD") and has federa/contract
authority to operate a federal Section 8 housing assistance payments program ("Section 8
program") within the seven-county "metropolitan area" as defined by Minnesota Statutes section
473.121; and
WHEREAS, the City of New Hope is a public body, corporate and politic, duly organized under
the laws of Minnesota and is authorized perform the administrative services contemplated by this
contract; and
WHEREAS, the City of New Hope performs certain Section 8 program admimstrative services
within the City of New Hope and other jurisdictions on behalf of the Council under a Section g
program adminisuative services contract ("Contract No. C-94-56").
NOW THEREFORE, in consideration of the mutual promises and covenants contained in this
contract, the City of New Hope and the Council agree as follows:
I. DEFINITIONS
1.01 Definition of Terms. For the purposes of this contract, the terms defined in this section
have the meanings given them in this section, except as otherwise provided or indicated by the
context.
(a) "Metropolitan Council" or "Council" means the Metropolitan Council established by
Minnesota Statutes section 473.123. When expressly stated or otherwise indicated by the
context of this contract, the term "Council" means the Metropolitan Council acting through
its Housing and Redevelopment Authority unit ("Metro HRA").
Co) "Contractor" means the City of New Hope acting though its governing body and its duly
authorized or designated employees, staff or agents.
Page 1 of 16 Page~
(c)
"Preservation a~sistance" means a special allocation of Section S assistance made
available by HUD to provide rental subsidy payments on behalf of cli~ble residents of
properties for which federally-insured mortgages arc pr:paid.
"Section 8 program" means an cxisung housing assistance payments program under
section 8 of the United States Housing Act of 1937, title 42, United States Code. section
1437f, as amended, including the HUD Housing Choice Voucher Pro.m-am.
II. SERVICES AND PROGRAM RESPONSIBILITIES
2.01 Basic Administrative Services. Thc Council a~m'ccs to purchase and thc Contractor agrees
to perform within the jurisdiction(s) identified in Exhibit A thc following "basic" Section $
program administrative services.
(a) Initial£ease-Up. The Contractor will perform the following lease-up activities:
(1) Assist Section 8 voucher holders locate suitable dwelling unfls eligible for usc in the
Section 8 program.
(2) Obtain applicant and participant files and review thc files for accuracy and
completeness after receipt of Request for Lease Appwval forms.
(3) Inspect and, as necessary, reinspect rental un/ts identified on Request for Lease
Approval forms.
(4) Complete rent reasonableness determinations and, when appropriate, help negotiate
contract rents consistent with rent reasonableness determinations.
(5) Complete computation worksheet to determine rent portions.
(6) Verify rental property ownership.
(7)
Complete and obtain necessary lease documents for each applicant or participant
family which shall include a lease, a required lease/tenancy addendum and any other
required lease related forms, a housing assistance payments ("HAP") contract and a
W-9 form, and review the documents for conformance with Section 8 program
(8) Ccrti~ accuracy and completeness of all application and lease-up documents and
submit completed files to thc Council for final review and payment processing.
(9) Perform other tasks and lease-up activities that may be reasonably needed to facilitate
timely lease-ups.
All initial lease-up activities shall be performed using forms and documents provided by the
Council, which may be amended or modified from time to time by the Council. Upon
completion of the initial lease-up activities, the Contractor will submit all original
Page 2 of 16 Page~
Co)
documents to the Council for file management and payment processing purposes. The
Contractor w/Il maintain at its offices a duplicate set of program files and records.
Ongoing Program AdminiStration. The Contractor will perform all Section 8
administrative services associated with: annual and interim recctlifications; renL unit.
income and lease changes; mutual terminations; evictions; and portabilir2,.' transfers. In
addition to performing the lease-up activities listed in paragraph 2.01(a), the Contractor will
perform the following ongoing program administration activities:
(1) Imtiate contacts with participant families for annual recertification.
(2) Verify family composition, income, assets, medical expenses, ch/Id r. are expenses and
citizenship as appropriate and determine eligibility for ongoing program participation.
(3) Issue Section 8 vouchers and provide participants w/th program information.
(4) Complete portability process if needed.
(5) Complete rent reasonableness determinations based upon rent reasonableness
information and forms supplied by the Council.
(6) Initiate investigation of potential fraud or program violations and make
recommendations to Metro liRA for further action.
(7)
(8)
Promptly notify appropriate Metro HR~ staff of any changes in participant status or
problems including, but not limited to, participant evictions, mutual lease
terminations, abandonment of dwelling units, lack of proper eligibility documentation,
changes in household composition and income, changes in property ownership,
noncompliance with HAP contract provisions and noncompliance with federal
housing quality standards ("HQ$") requirements.
Maintain at its offices a duplicate set of Section 8 program files and records for each
Section 8 family while the family is provided services under this contract. Files and
records for each family will be retained by Metro HRA for three (3) years beyond the
date when services no longer are provided to that family. The Contractor will provide
prior written notice to the Council before the Contractor disposes of any duplicate
files and records of famihes no longer Provided services under this contract and will
dispose of any duplicate files and records in accordance with the Minnesota
Government Data Practices Act.
(9) Conduct affimmfive marketing activities such as contacting and working with rental
property owners, community groups, and rental property management groups to
encourage participation in and understanding of the Section 8 program.
(10) Perform other work tasks that reasonably may be required to facilitate effective
ongoing program administration.
Page 3 of Y 6 Pages
Ail ongoing pw.m'am adrnimstrative services shall be performed using forms and documents
pwvided by the Council, which may be amended or modified from time to time by the
Council. Upon completion of the ongoing pw.m-am administrative services, the Contractor
will submit all original documents to the Council for file .management and paymen!
processing purposes. The Contractor will..maintain at its off:ices a duplicate set of pm.ir'am
files and records.
(c)
Inspection and Reinspection. The Contractor will inspect and reinspect dwelling units for
use in the Section 8 program. Inspections and of dwelling units shall include a thorough
and complete on-site inspection and certification of the dwelling unit sufficien! to ensure
conformance with federal HQS as set forth in title 24, Code of Federal Regulations, section
982.401, as amended, or as required by locally established requir~nents which have been
appwved by HUD. Such inspections and reinspections shall be made at the following
times: prior to initial lease by an applicant or participant family; at least annually thereafter;
at other times during the term of the lease as needed to determine if the unit meets HQS as
required by title 24, Code of Federal Regulations, section 982.405, as amended; and as
required by locally established requirements which have been appwved by HUD. For the
purposes of dwelling unit inspections, "annual" inspection means an inspection that occurs
no later than twelve (12) months after the previous inspection. The HQS inspections shall
be performed in a timely manner and inspection forms shall be completed and submined in
a timely manner so the interests of Section 8 families, rental pwpeny owners, and the
Council are not compromised. In addition to conducting initial, annual and other HQS
inspections, the Corm'actor will perform the .following additional inspection and
reinspection activities:
(1)
Conduct damage inspections as required by the Council's policies and procedures.
The Contractor will conduct all damage inspections within twenty-four (24) hours
after a request, or as soon thereafter as is reasonably possible, so the interests of
Section 8 families, rental property owners, and the Council are not compromised.
Damage inspections shall be conducted only on rental units covered by a HAP
contract containing a damage claims provision.
(2) Conduct special inspections as requested by program participants or landlords, and as
requested or requ/red by the Council.
(3) Complete assessment of rental unit and property conditions as required for rent
reasonableness determinations.
(4) Perform other work tasks that reasonably may be required to facilitate required
inspections and remspec~ons.
Repons of all inspections and reinspections shall be made by the Contractor on inspection
forms provided by the Council. The Contractor will fully and accurately complete ali
inspection forms and will provide timely notification of inspection results to landlords and
program part/c/pants. The Contractor w/Il promptly notify the Council of any required
subsidy payment abatements resulting from a landlord's or a fam/ly's fa/lure to remedy
within specified timelines any "failed" items identified during inspections or reinspections.
Page 4 of 16 Pages
2.02 Enhanced Admiaistrative Services. At the Contractor's option but sub. iect to Council
approval, the Contractor ma)' perform w/thin the junsdict/on(s) identified m Exh/bit A the
"enhanced" Section 8 pwgram administrative services described m paragraphs 2.02(a) or 2.02(b).
,4dditional Mdmmistrattve Services. in addition to performing the "basic" Section 8
pwgram administrative services described in para~m'aph 2.01, the Contractor ma5, elect to
perform the following "enhanced" Section 8 program aciministrative services:
Veri~ income and other eli~bili .fy information for Section 8 applicants living w/thin
the jurisdiction(s) identified in Exhibit A who have been selected by the Council fi'om
the Council's Section 8 waiting hst for participation in the Section 8 program.
(2) Determine applicant eligibility for Section 8 program assistance.
Conduct Section 8 program briefing sessions for applicant families selected and
determined eligible for participation in the Council's Section 8 program, and issue
Section 8 vouchers to eligible families.
(b)
(2)
(3)
(4)
(5)
(6)
(4) Receive paperwork for incoming Section 8 applicants and participants who have
exercised their portability option to move into a jurisdiction for which the Contractor
provides Section 8 administrative services under this contract. The Contractor will
review the paperwork for completeness and accuracy and conduct Section 8 program
briefing sessions for families exercising their.portability option. The Contractor also
will perform and complete all required activities described in paragraph 2.01.
Preservation/lssistance ~ldministration. If HUD makes Section 8 preservation assistance
available to persons residing in rental properties located in jurisdictions for which the
Contractor provides Section 8 administrative services under this contract, the Contractor
may provide preservation assistance services. These preservation assistance services shall
include, but are not limited to, the following:
(1) Perform initial review of resident profile information to determine preliminary
resident ehgibility for preservation assistance.
Prepare and distribute initial information to project residents.
Conduct resident meetings at which Preservation assistance information is provided
and the process for receiving preservation assistance is explained.
Schedule and conduct additional group and individual resident meetings as needed.
Determine resident eligibility for Section 8 preservation assistance by verifying
household income, assets and eligible expenses.
Schedule and conduct client briefings and issue Section 8 vouchers to eligible families.
Page 5 of l 6 Paget
(7) Complete lease-up procedures and conduct unit inspections for residents who lease
rental units using preservation assistance within the Conn-aetor's area of service.
Eligibility to Perform Enhanced SerVtces. The Contractor ma)' perform the "enhanced"
Section 8 program admimstrative services described in paragraphs 2.02(a) or 2.02Co) by
providing the Council with written notice in/orming the Council about the Contractor's
intention to provide "enhanced" admimstrative services. Following receipt of the v~witten
notice, the Council will det=,~ane the 'Contractor's capacity to perform the requested
· 'enhanced" administrative services and will dmermine with the Conwactor a date upon
which the Contractor will begin providing "enhanced" Section 8 program administrative
services. The Council will provide written notice authorizing the Contractor to undertake
and perform the "enhanced" Section 8 administrative services described in para_m-aphs
2.02(a) and 2.02(b).
All "enhanced" administrative services shall be performed using forms and documents provided
by the Council, which may be amended or modified from time to time by the Council. Upon
completion of "enhanced" administrative services, the Contractor will submit all onginal
documents to the Council for file management and payment processing purposes. The
Contractor will maintain at its offices a duplicate set of program files and records.
2.03 Program Requirements and Training. The Contractor agrees to comply with the
following administrative and u'aining requirements during the performance of this contract.
(a) Personnel. The Contractor will designate to the Council the person or persons who will
conduct or perform the Contractor activities described in this corm'act.
Training. The Contractor will develop and maintain a thorough understanding of the
Section 8 program regulations and the requirements and procedures set forth in manuals and
other materials provided by the Council. The Contractor agrees to send a representative to
all required Section 8 program training sessions and staff meetings conducted by the
Council. The Council will notify the Contractor of a required training session or required
meeting at least ten (10) business days prior to the training session or meeting.
(c)
Re. sources and Staying. The Contractor shall provide adequate staff time and office or
program space to perform the Section 8 program administrative services contemplated by
this contract and shall make staff and office or program space available to Section 8
applicants and participants during ,scheduled business hours approved by Metro HRA staff.
Staff and office or program space provided by the Contractor shall comply with all
applicable state and federal accessibility standards and requirements. The Contractor shall
provide adequate signs and other directional materials to inform applicants and prospective
applicants about the place and manner of making application. The Contractor shall keep
available for distribution adequate brochures and other information or materials as may be
prepared by the Council and shall supplement the brochures with local informational
materials as appropriate or needed. The manner of furnishing these services shall be agreed
upon by the Contractor and the Council. The Contractor and the Council shall from time to
time confer about the details of the furnishing of these services. The Conmictor agrees to
Page 6 of 16 Pages
compJy with reasonable demands made by the Council concerning these prob.-am
2.04 Notice of Actions and Claims. The Contractor will immediately notifs.' Metro I-IRA. sta.ffbv
telephone about any summons or other legal or judicial notices, includin.._, conciliation com':
summons or notices, involving claims or disputi:~ related to the administration of the Council's
Section 8 program within the jurisdiction(s) identified in Exhibit A. The Contractor will confirm
its telephone notification by wrinen notice within three (3) business days after the telephone
notification. The Contractor also will notify the Council about and refer to Metro HRA staff within
one (1) business day any contacts related Io the administration of this contract or the Section $
families served by the Contractor under this contract that are received from legal aid
representatives, legislators or legislative staff, and television, radio or newspaper media staff.
2.05 Council Program Obligatioas. Unless otherwise performed by the Contractor under
paragraphs 2.01 or 2.02, the Contractor and the Council understand and agree the Contractor shall
not be required to perform the following Section 8 program services and activities which are the
primary responsibility of the Council.
(a) ~treawide Marketing. The Council will coordinate all areawide affirmative marketing
activities, such as preparing brochures and advertising, and contacting and working with
area community groups, rental property owners and rental property management groups.
(b) Waiting £~t ,4dminL~tration. The Council will develop and maintain a Section 8 applicant
waiting list and will select applicants for participation in the Section 8 program.
(c) Recordx and Overall Program Management. The Council will: create, update and maintain
computer records of all active and nonactive Section 8 applicants and participants; collect
all areawide data and prepare all housing assistance program reports for HUD; provide
overall financial program management, including budgeting, requisitions and monitoring;
provide necessary equal employment oppormmty and affirmative action documents as
required by the Consolidated ACC between the Council and I-RJ'D.
(d) HAP Contract Payment& The Council will execute housing assistance payments contracts
with rental property owners and will authorize and make housing assistance payments to
owners, both at month-end and on a weekly basis.
(e) Informal Hearing& The Council will conduct informal hearings to review denial, reduction
or termination of Section 8 program assistance. The Council also will conduct informal
hearings to review and determine rental property owner and Section 8 participant claim
matters. The Council will keep the Contractor apprised of the status and results of all
in£ormal hearings. ,
(f) Program Training. The Council will provide necessary program training for Contractor
.staff including, but not limited to, HQS inspection training. The Council will perform HQS
inspection monitoring activities.
Page 7 of ! 6 Page. v
(g) Program Materials. The Council will prepare and provide admirestrative P°l~mes.
operating bwchures, forms, manuals and other Section 8 pm,m-am matenals.
(h) Application and Lease-up Processes. The Council will coordinate initial application
processes and will serve as the clearinghouse., for and maintain logs of all incoming and
outgoing portability lease-ups.
2.06 Area of Operation. The Council is authonzed by Minnesota Statutes section 473.195 to
plan and administer a Section 8 pm,gram within the seven-counW metropolitan ama, including the
jurisdiction(s) identified in Exhibit A of this contract. The Section 8 program admimsrrative
services contemplated by this contract shall be provided by the Contractor for Section 8 pro,re'am
applicants and participants residing in or moving into the jurisdiction{s) identified in Exhibit A.
III. COMPENSATION AND FEE REIMBURSEMENT
3.01 Maximum Payment and Fees. The Council agrees to pay the Contractor on a monthly
basis the reimbursable costs incurred by the Contractor in furnishing the Section 8 administrative
services specified in this contract which are reimbursable to the Council by HUD.
(a)
(b)
Ongoing Administrative Fee. The Council will pay to the Contractor an ongoing
administrative fee on a per-unit-per-month basis. The per-unit-per-month flat fee
reimburs~nent amount will be adjusted (increased or decreased) whenever the Section 8
program administrative fees received by the Council from HUD change. Effective upon
written notice from the Council, the per-unit-per-month fiat fee reimburs~nent amount will
be adjusted (increased or decreased) whenever and by the same factor as the Council's
ongoing administrative fee is adjusted (increased or decrmmed) by HUD. The ongoing
administrative fee payable to the Contractor shall be fifty percent (50%) of the per-unit-per-
month administrative fee received by the Council fi'om HUD. For the purposes of this
paragraph, the "per-unit-per-month administrative fee received by the Council from HUD"
means the administrative fee received by the Council from HUD for the units in the
Council's Section 8 programs in excess of the first 600 units (~xample: the "Column B"
administrative fee dvpicted in the matrix at page 12,713 of the March 12, 1999 Federal
Register). Notwithstanding any other provision of this contract, the Contractor and the
Council agree that this administrative fee amount is payable for Section 8 administrative
s,a'vices performed by the Contractor on and after June 1, 1999. The Council will make a
one-time lump-~ payment to the Contractor to effectuate the retroactive application of
this provision. The lump sum payment will represent the diff~'ence between: the payments
already made to the Contractor for services rendered under the tm of the previous
contract fi'om June I, 1999 to the date upon which this contract is executed; and the per-
mt-per-month fiat fee reimbursement amount stated in this paragraph 3.01(a). Payments
will be based on records described in para~m'aph 3.02(b). Ongoing administrative fees are
subject to portability adjus~ents under paragraph 3.01(d).
Enhanced Services Administrative Fees. If the Contractor provides the additional
"enlumc~' administrative services described in paragraph 2.02(a), the Council will pay thc
Contractor a one-time preliminary fee of fifty dollars ($50.00) per selected applicant family
and fifty dollars ($50.00) per newly ported-in family to offset administrative cxpcrmes
Page 8 of 16 Pages
incurred by the Contractor in performing the "enhanced" ser-,,ices described in para.re'apb
2.02{a). This one-time prel/mmary fee for enhanced administrative services is in addition to
any ongoing adm/mstrative fees payable under para.~Aohs 3.01(a) and 3.01(d), any
payments or fees for the performance of preservation assistance administration described in
paragraph 2.02(b), and any hard-to-house fees under para.re'apb 3.01(c). If the Contractor
pwvides preservation assistance services/tescribed in para.re'apb 2.02(b). the Cotmci] will
pay the Contractor a one-time preliminary fee of $100 for each family determined eligible
for preservation assistance by HUD. The $100 one-time preliminars., fee is intended to
offset acirmnistrative expenses incurred by the Contractor in providang preservation
assistance services to eligible families of eligible pwjects within the Contractor's area of
jurisdiction, regardless of the number of families ultimately determined eligible for such
Section 8 preservation assistance. This one-time preliminary fee for preservation assistance
services is in addition to any ongoing admimstrative fees payable under para.m'aphs 3.01 (a)
and 3.01(d), any payments or fees for the performance of additional "enhanced"
administrative services described in para~m'aph 2.02(a), and any hard-to-house fees under
paragraph 3.01 (c).
(c)Hard-to-House Fee. Provided hard-to-house fees are reimbursed to the Council bv HUD,
the Council shall pay to the Contractor on a monthly basis forty-five dollars ($4~.00), or
such other increased or decreased fee amount established by law or by HUD, for each hard-
to-house family actually housed in a different unit than the family's pre-program dwelling
unit, as well as each time a hard-to-house assisted family moves to another dwelling unit
with continued Section 8 assistance. A hard-to-house family is a family with three or more
minors. A hard-to-house family is actually housed if both a lease and a housing assistance
payments contract are executed. The hard-to-house fee is not payable to the Contractor if a
hard-to-house family does not move, or if the hard-to-house family does move but moves
without continued Section 8 assistance. This hard-to-house fee is in addition to any
ongoing administrative fees payable under paragraphs 3.01 (a) and 3.01(d), any payments or
fees for the performance of additional "enhanced" administrative services described in
paragraph 2.02(a), and any payments or fees for the performance of preservation ass/stance
administration described in paragraph 2.02("0).
(d) Portability .4djustment. In accordance with the portability provisions of the federal laws
governing the Section 8 program, the Council receives from each "Imtial PHA" eighty (80)
percent of the Initial PHA's ongoing administrative fee for each unit month a participant
fam/ly resides in the Council's Section 8 operating jurisdiction under the federal portability
provisions. Accordingly, the Contractor and the Council agree that, for each unit month a
Section 8 fam/ly receiving Section 8 assistance under the federal portability provisions
resides in the jurisdiction(s) identified in Exh/bit 3,., the Contractor w/Ii receive from the
Council fifty percent (50%) of the ongoing administrative fee the Council receives from the
3.02 Method of Payment. Payments to the Contractor by the Council shall be made according to
the following Provisions:
(a) Quarterly Invoices and Reports. The Contractor shall prepare and submit quarterly
invoice/reports on forms or in a format approved by Metro HRA sta~. The invoice/reports
Page 9 of 16 Pages
Co)
shall describe actual admirUstrative services performed during the quarter and itemize the
Contractor's reimbursable costs of performing those s~rvices during the quarter.
Monthb' Payments. Notwithshandmg the quarterly invoices and report~, the Council will
pay the Co~tractor the applicable fees under paragraph 3.01 on a monthly baqis. Ongoing
administrative fee and hard-to-house fee reimbur~nent payments to the Contractor will be
based on the number of umts, as indicated in Metro HRA's monthly utilization and hard-to-
house report, which are administered by the Contractor within the jurisdictionls) identified
in Exhibit A. One-time preliminary, fees described in para~m'aph 3.01(b) will be paid to thc
Contractor based on records kept by the Council. The Contractor will notif2,.' the Council of
any fee payment or utilization issues. The Council will provide the Contractor a written
response to fee payment issues raised by the Contractor.
3.03 Administrative Fee Reserve (formerly Operating Reserve). During thc term of this
contract, all funds received by the Contractor from the Council pursuant to this contract must be
expended for Section 8 program administrative costs or held for future affordable housing related
activities. The Contractor must maintain an administrative fee reserve account that must be
credited with the mount by which the total of administrative fees earned and interest earned on the
administrative fee reserve account exceeds the Contractor's actual administrative expenses during
the calendar year. The Contractor may accumulate in its local administrative fee reserve account up
to $10,000.00 per year for future Section 8 administrative expenses or for other affordable housing
related activities.
IV. RECORDS, FILES, AND AUDITS
4.01 Records. The Contractor agrees to maintain accurate, complete and separate accounts and
records of all expenditures of funds for which reimbursement is claimed under this contract and of
all moneys received pursuant to this contract. Such accounts and records shall bc kept and
maintained during thc term of this contract and for a period of three (3) years following thc
termination of this contract.
4.02 Audit and Inspection. The accounts and records maintained pursuant to this contract shall
be audited in the same manner as thc other accounts and records of thc Contractor and may be
audited or inspected on thc Contractor's premises or otherwise by individuals or organizations
designated and authorized by the Council at any time following reasonable notification during thc
term of this contract and for a period of three (3) years following thc termination of this contract.
The Contractor further agrees that HUD and the Comptroller General of thc United States, or their
duly authorized representatives, shall have full and free access to all Contractor offices and
facilities, and to all thc book~, documents, papers and records of thc Contractor that are pertinent to
the performance of this contract or pertinent to the operation and management of the Section 8
program, including thc right to audit, and to make excerpts and transcripts from thc books and
records.
4.03 Data Privacy. The Contractor agrees to abide by the Minnesota Government Data Practices
Act and other applicable state and federal law governing private or confidential data on individuals.
The use or disclosure of information concerning a Section 8 program applicant or participant in
violation of the Minnesota Government Data Practices Act or any other applicable state or federal
Page 10 of 16 Pag~
law or rule of confidemialiry is prohibited, except on the written in.formed consent of the applicant
or participant, or as otherwise allowed or provided by state or federal law. Data on a family that are
collected or created because of the family's status as a Section $ applicant or participant is
classified as private "benefit" data under Minnesota Statutes section 13.31.
V. CONTRACT TERM
5.01 Period of Performance. This contract is effective on the date this contract is finally
executed by the Council and shall continue until the earlier of the following: termination o£Section
8 program funding by HUD; termination of this contract by either part), pursuant to para~,c, raph 5.02
of this contract; or June 1, 2004. As provided in para~m-aph 3.01, the ongoing administrative fee
described in paraglaph 3.01(a) shall be payable ren'oactive to June 1, 1999.
5.02 Termination of Contract The Council and the Contractor both shall have the right to
terminate this contract at any time and for any reason by submitting written notice of termination to
the other party at least ninety (90) days prior to the specified effective date of the termination. In
addition, the Council shall have the right to terminate this contract on fourteen 04) calendar days'
written notice if the Contractor's performance is not timely or is substantially unsatisfactory, or if
the Contractor has violated any of the material terms, conditions or agreements contained in this
contract. In either event, on the termination of this contract all £mished and unfinished documents,
work papers, products and records prepared by the Contractor under this contract shall become the
property of the Council. On the termination of this contract, the Contractor will be paid for
administrative services satisfactorily performed up to the date of the contract termination according
to the terms stated in article III of this contract.
VI. CONTRACT PERFORMANCE AND MODIFICATION
6.01 Assignment The Contractor shall perform with its own organization the total work
provided for under tiffs contract and shall not assign, subcontract or transfer any of thc contract
work without the prior written consent of Metro HRA staff.
6.02 Prompt Payment of Subcontractors. If the Contractor receives prior written consent from
the Council pursuant to paragraph 6.01 of this contract and assigns, subcontracts or transfers any of
the work provided for under this contract, the Contractor agrees to pay any subcontractor within ten
(10) days of the Contractor's receipt of payment from the Council for undisputed services provided
by the subcontractor(s). The Contractor further agrees to pay interest of one and one-half (1 ~)
percent per month or any part ora month to the subcontractor(s) on any undisputed amount not paid
on time to the subcontractor(s). The Contractor agrees the minimum monthly interest penalty
payment for an unpaid balance of one hundred dollars ($100.00) or more is ten dollars ($10.00).
For an unpaid balance of less than one hundred dollars ($100.00), the Contractor agrees to pay the
actual penalty due to the subcontractor(s).
6.03 Amendments. The terms of this contract may be changed or modified by mutual agreement
of the parties. Such amendments, changes, or modifications shall be effective only on the execution
of written amendment(s) signed by the Council and the Contractor.
Page 11 of 16 Page~
vn. LLOILm'
7.01 Indemnification. '1'o the extent permitted by law, the Contractor agrees to indemnify, defend
and save and hold the Council, its agents and employees harmless fi.om any and all claims or causes
of action arising fi.om the performance of this contract by the Contractor or the Contractor's
employees and agents. This clause shall not be construed to bar any legal remedies the Contractor
may have for the Council's failure to perform its obligations under this contract. Nothing in this
clause shall be construed as a waiver on the part of either the Contractor or the Council of an)'
immunities or limits on liabilit3' provided by Minnesota Statutes chapter 466. or other
applicable state or federal law.
7.02 Insurance. The Council assumes no liability with respect to bodily injury, illness, accident,
theft or any other damages or losses concerning persons or property arising out of the use or
maintenance of Contractor's premises, equipment or vehicles. The Contractor is responsible for
providing adequate insurance coverage to protect against legal liability arising out of the
Contractor's activities under this contract. Upon request from Metro HRA staff, the Contractor
shall provide copies of insurance instruments or certifications fi'om the insurance issuing agency
which show the insurance coverage, the designated beneficiary, the parties covered and the
coverage amounts.
7.03 Independent Contractor Status. The Contractor acknowledges that the Contractor and the
Contractor's agents and employees are independent contractors under the terms and conditions of
this contract. The Contractor is responsible for the employment, discharge, compensation, benefit
coverage and supervision of all Contractor personnel, employees and agents. The Contractor
expressly acknowledges that the Contractor and the Contractor's personnel, employees and agents
shall not assert any claims against the Council for reemployment, workers' compensation or other
employee benefits of any type related to the performance of this conwact.
VIH. EQUAL EMPLOYMENT; NONDISCRIMINATION
8.01 Equal Employment Opportunity. The Contractor agrees to provide equal employment
oppommities.
(a)
(b)
Nondiscrimination and Affirmative Action. The Contractor shall not discriminate against
any employee or applicant for employment because of race, color, creed, religion, national
origin, sex, marital status, status with regard to public assistance, disability, sexual
orientation or age. Thc Contractor shall take affirmative act/on to ensure that applicants are
employed, and that employees are treated during employment, without regard to race, color,
creed, religion, national ori~n_~ sex, marital status, status with regard to public assistance,
disability, sexual orientation and age. Such action includes, but is not limited to, the
following: employment, upgrading, demotion, or transfer;, recruitment or remitment
advertising; layoff or tenninat/on; rates of pay or other forms of compensat/on; and
selection for training, including apprenticeship.
Notice Posting. The Contractor agrees to post in conspicuous places, available to
employees and applicants for employment, notices setting forth the nondiscrimination
pwvisions of paragraph 8.01(a) of this contract. The Contractor will in all solicitations or
Page 12 of 16 Pages
advertisements for employees placed by or on behalf of the Contractor state that all
qualified applicants will receive consideration for employment without re.card to race. color.
creed, religion, national origin, sex. marital status, status with regard to public assistance.
disabilit3', sexual orientation and age.
(c) Subcontracts. The Contractor agrees to ificorporate the provisions o£paragraph 8.01 in any
subcontracts for project work.
8.02 Equal OppormniD' Compliance Reviews. The Contractor shall cooperate with the
Council and HUD in conducting compliance reviews and complaint investigations pursuant to
applicable federal and state civil rights statutes, executive orders, and related rules and regulations.
8.03 Nondiscrimination in Housing. The Contractor agrees to comply with federal and state
laws prohibiting discrimination in housing.
(a)
Federal Laws. The Contractor shall comply with the nondiscrimination requirements of
Title VI of the Civil Rights Act of 1964 prohibiting discrimination based on race, color, or
national origin and Executive Order 11063 with respect to those provisions prohibiting
discrimination based on religion or sex, and with implementing HUD regulations. The
Contractor shall comply with Title VIII of the Civil Rights Act of 1968 which prohibits
discrimination in the sale, rental or financing ofhousing on the basis of race, color, religion,
sex, handicap, familial status, or national origin and with any implementing regulations.
The Contractor shall comply with Section 504 of the Rehabilitation Act of 1973, as
amended, which prohibits discrimination against handicapped persons who would
otherwise qualify to participate in Section 8 programs and, where applicable, the Age
Discrimination Act of 1975, as amended, which proh/bits discrimination on the basis of age.
Unwed parents, families with children bom out of wedlock, and recipients of public
assistance shall not be excluded from participation in or be denied the benefit of the Section
8 programs because of such status.
(b) State Laws. The Contractor shall comply with all applicable provisions of the Minnesota
Human Rights Act.
IX. GENERAL PROVISIONS
9.01 Conflict oflnter~t. The Contractor agrees to abide by federal and state conflict of interest
laws pertaining to the Pefformmce oft/tis contract.
(a) Federal Conflict Pro.ions. (1) In accordance with title 24, Code of Federal Regulations,
section 982.161(a), neither the Council nor any of its contractors or subcontractors may
enter into any contract, subcontract or arrangement in connection with the Section 8 tenant-
based programs in which any of the following classes of persons has any interest, direct or
indirect, ·
dunng tenure or for one year thereafter:
(i) Any ~t or former member or officer of the Council, except a "participant
commissioner";
.Page 13 of 16 Pages
(ii)
Any employee of the Council. or any contractor, subcontractor or agent of the
Council, who formulates policy or who influences decisions with respect to the
Section 81 pro_mm'ns;
(iii)
Any public official, member of a governing body. or state or local legislator,
who exercises functions or'responsibilities with respect to the Section 8
programs; or
(iv) Any member of the Con~ess of the United States.
(2) Any member of the classes described in pm.graph 9.01(a)(l) must disclose their
interest or prospective interest to the Council and HLrD.
(3) The conflict of interest prohibitions under paragraph 9.01(a)( 1 ) may be waived by the
HUD field office for good cause.
Co)
State Conflict Provisions. The members, officers and employees of the Contractor will
comply with all applicable state statutory and regulatory conflict of interest laws, including
Minnesota Statutes sections 10A.07 and 469.009, as mended.
9.02 Federal Certification Regarding Lobbying. Pursuant to title 24, Code of Federal
Regulations, part 87, the Contractor certifies, to the best of its knowledge and belief, that:
(a)
Co)
Use of Federal Funds. No federal appropriated funds have been paid or will be paid, by or
on behalf of the Contractor, to any person for influencing or attempting to influence an
officer or employee of an agency, a member of Congress, an officer or employee of
Congress, or an employee of a member of Congress in connection with the awarding of any
federal contract, the making of any federal grant, the making of any federal loan, the
entering into of any cooperative agreement, and the extension, continuation, renewal,
amendment, or modification of any federal contract, grant, loan, or cooperative agreement.
Disclosure. If any funds other than federal appropriated funds have been paid or will be
paid to any person for influencing or attempting to influence an officer or employee of any
agency, a member of Congress, an officer or employee of Congress, or an employee of a
member of Congress in connection with this contract or its funding, the Contractor shall
complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in
accordance with its instructions.
(c) Certification. This certification is a material representation of fact upon which reliance was
placed when this transaction was made or entered into. This certification is a prerequisite
for making or entering into this transaction imposed by title 31, United States Code, section
1352. Any per~n who falls to file the required certification shall be subject to a civil
penalty of not less than $10,000 and not more than $100,000 for each such failure.
9.03 Federal Regulations; HUD and Metro HRA Policies. The Contractor agrees to perform
the Section 8 program administrative services contemplated under this contract in compliance with:
parts 887 and 982 and other applicable provisions of title 24, Code of Federal Regulations, and
Page 14 of 16 Pages
other applicable provisions of the federal regulations govermng the Section $ program: apphcable
provisions of the HUD Handbook; the Administrative Plan for the Metropolitan Council Housing
and Redevelopment Authority, as amended or revised; current procedures, leners and forms
provided by the Council in policy/procedural memoranda; HUD's Housing Inspection Manual for
the Section 8 Existing Housing Program; and all other applicable procedures and policies as max, be
provided to the Contractor.
9.04 Prohibition of Service Charges. The Contractor shall not charge am' fee to any Section
program applicant or participant or charge an)' fee to any rental propert)., owner for am, Section
program admimstrative services provided under this contract.
9.05 Prior Contracts. The Contractor and the Council agree this contract supersedes and
replaces Contract No. C-94-56, and any amendments to Contract No. C-9~56, and any other prior
Section 8 program administrative services contracts entered into between the Council and the
Contractor. Contract No. C-94-56 is terminated upon final execution of this contract.
9.06 Warranty of Legal Capacity. The individual signing this contract on behalf of the
Contractor represents and warrants on the Contractor's behalf that the individual is duly authorized
to execute this contract on the Contractor's behalf, and that this contract constitutes the Contractor's
valid, binding, and enforceable agreements.
IN WITNESS WHEREOF, the Contractor and the Council have caused this contract to be
executed by their duly authorized representatives.
Approved as to form:
Associate ~,ma~al Counsel
METROPOLITAI~ COUNCIL
By:
Its: President (EDA)
Date: January 10, 2000
Its: Executive Director (EDA)
Date: January 11, 2000
Page 15 of 16 Pages
METI~O HI~
EXHIB~ .4,
CITY OF NEW HOPE
The Contractor shall perform the Section 8 program contract services within the Ci.ty o£New Hope,
Minnesota and within the following jurisdictions located in Hcrmcpin County, Minnesota:
Edina
G-olden Valley
Maple Grove
Ossco
The Council will perform Section 8 inspection and rcinspcction services for dwelling units located
within thc cities of Edina, Golden Valley, Maple Grove and Ossco.
Page 16 of 16 Page~
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agencla Section
Community Development 4-28-03 EDA
By: Kirk McDonald By: ,,
A RESOLUTION AUTHORIZING AN EXCLUSIVE NEGOTIATION PERIOD BETWEEN THE NEW HOP--
ECONOMIC DEVELOPMENT AUTHORITY AND THE RYLAND GROUP, INC. FOR THE WINNETKA
AVENUE AREA (IMPROVEMENT PROJECT NO. 729)
REQUESTED ACTION
Staff requests approval of the attached Resolution by the EDA authorizing an Exclusive Negotiation Period
Between the New Hope Economic Development Authority and the Ryland Group, Inc. for the Winnetka
Avenue Area. The resolution is in follow up to direction provided at the April 21, 2003, City Council work
session and recommended by the city's financial consultant.
POLICY/PAST PRACTICF
The EDA has entered into similar agreements in the past regarding redevelopment projects and the Eas~
Winnetka redevelopment project is one of the goals of the New Hope Comprehensive Plan.
BACKGROUND
The City Council previously named Ryland, Inc. as the "preferred developer" for the East Winnetka
redevelopment area. The City desires to now enter into an exclusive negotiation agreement with Ryland and to
utilize Krass Monroe, P.A. to assist with the negotiation process as discussed at the April 21 City Council work
session. The city's financial consultant has prepared the attached resolution to move forward on these issues.
The resolution states that:
· The East Winnetka area is an approximately 25-acre parcel of land which is bounded by Winnetka Avenue
to the west, Bass Lake Road to the north and existing single-family housing on the east and south.
· The site was historically used for single-family residential purposes and, while intending to maintain its
residential use, the City plans to redevelop the site to contain a mix of single- and multi-family housing
types.
· Following the request for proposals by the City and consideration of the proposals received, The Ryland
Group, Inc. was chosen as the City's tentative developer/builder for the site.
hRFA\PLANNING/LIV COMM/Q-Ryland 90 day agreement
Request for Action
·
Page 2 4-28-03
In its proposal, Ryland proposes to invest additional time, expertise and money to continue to work with the
City to refine the site plan and examine the economic feasibility of development on the site.
Ryland has requested that the City provide a 90-day exclusive negotiation period with Ryland with respect
to development of the site.
The EDA hereby finds that the redevelopment of the site promotes the objectives as outlined in its
Restated Redevelopment Plan for Redevelopment Project No. 1 established pursuant to Minnesota
Statutes, Sections 469.001 et seq.
The resolution further states that:
· The EDA hereby agrees that it will negotiate exclusively with Ryland for the development of the site for a
period of 90 days from the date hereof, during which period the following actions shall occur:
(i)
(ii)
Ryland shall finalize the preliminary site plan with input from city and EDA staff;
Ryland, at its own expense, shall conduct any analysis it deems necessary of the environment and
geotechnical condition of the site and perform the economic feasibility, marketing and other analyses
contemplated by Ryland's letter to the City dated April 7, 2003;
Ryland shall submit a construction pro forma, review of market values and such other financial
information as the EDA may request in order to determine a sales price for the land to be included as a
term in a term sheet; and
(iv) If Ryland determines that the site is not economically feasible to develop, Ryland shall deliver to the
EDA for its unrestricted use at no cost to the EDA all work product, market analysis, architectural and
engineering reports, construction budget, research materials and other documentation produced for
the site.
· The firm of Krass Monroe, P.A. is hereby authorized to assist the EDA in negotiating a term sheet with
Ryland and to conduct such tax increment financing and other analyses as the EDA may request.
Staff recommends approval of the resolution.
FUNDING
The cost for Krass Monroe, P.A. to assist with negotiations will be paid from EDA funds and reimbursed by the
redevelopment project.
ATTACHMENTS
· Resolution
· April 21 Krass Monroe Memo
· April 7 Ryland Correspondence
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF HENNEPIN
STATE OF MINNESOTA
RESOLUTION NO.
A RESOLUTION AUTHORIZING AN EXCLUSIVE NEGOTIATION
PERIOD BETWEEN THE NEW HOPE ECONOMIC DEVELOPMENT
AUTHORITY AND THE RYLAND GROUP, INC. FOR THE WINNETKA
AVENUE AREA
BE IT RESOLVED by the New Hope Economic Development Authority (the
"EDA") as follows:
Section 1. Recitals.
1.01 The East Winnetka Area is an approximately 25-acre parcel of land which
is bounded by Winnetka Avenue to the west, Bass Lake Road to the north and existing
single-family housing on the east and south (the "Site");
1.02 The Site was historically used for single-family residential purposes and,
while intending to maintain its residential use, the City plans to redevelop the Site to
contain a mix of single- and multi-family housing types;
1.04 Following a request for proposals by the City and consideration of the
proposals received, Ryland Homes ("Ryland") of The Ryland Group, Inc. was chosen as
the City's tentative Developer/Builder for the Site;
1.05 In its proposal, Ryland proposes to invest additional time, expertise and
money to continue to work with the City to refine the site plan and examine the
economic feasibility of development on the Site; and
1.06 Ryland has requested that the City provide a 90-day exclusive negotiation
period with Ryland with respect to development of the Site.
Section 2. _Findinqs.
2.01 The EDA hereby finds that the redevelopment of the Site promotes the
objectives as outlined in its Restated Redevelopment Plan for Redevelopment Project
No. 1 established pursuant to Minnesota Statutes, Sections 469.001 et seq.
Section 3. Authorizations.
3.01 The EDA hereby agrees that it will negotiate exclusively with Ryland for the
development of the Site for a period of 90 days from the date hereof, during which
period the following actions shall occur:
(i)
Ryland shall finalize the preliminary site plan with input from City
and EDA staff,
(ii)
Ryland, at its own expense, shall conduct any analysis it deems
necessary of the environmental and geotechnical condition of the
Site and perform the economic feasibility, marketing and other
analyses contemplated by Ryland's letter to the City dated April 8,
2003;
Ryland shall submit a construction pro forma, review of market
values and such other financial information as the EDA may
request in order to determine a sales price for the land to be
included as a term in a term sheet; and
(iv)
If Ryland determines that the Site is not economically feasible to
develop, Ryland shall deliver to the EDA for its unrestricted use at
no cost to the EDA all work product, market analysis, architectural
and engineering reports, construction budget, research materials
and other documentation produced for the Site.
3.02 The firm of Krass, Monroe P.A. is hereby authorized to assist the EDA in
negotiating a term sheet with Ryland and to conduct such tax increment financing and
other analyses as the EDA may request.
Adopted by the EDA this
day of ,2003.
ATTEST:
, President
, Executive Director
G:\WPDATA\N~NEW HOPE~09~DOC\EDA RESOL. AUTHORIZING EXCL NEGOT RYLAND.DOC
KRASS MONROE,
ATTORNEYS AT
· Grog D. Johnson, CPA
Ema#: 9mg~tul&smonroe. com
Vo/ce Ma~7/'9.f2) 885.5994
P.A.
LAW
ME M ORANDUM
From: Greg D. Johnson, CPA
James R. Cassedy, F_sq.
City of New Hope
Att'n: Kirk McDonald, Comm. Dev. Dir.
Daniel Donahue, City Manager.
Daryl Sulander, Finance Director
Date: April 21, 2003
East Winnetka - Ryland Proposal
Our File No. 10048-9
Ryland Homes has presented a development proposal to the City to build approximately
206 residential b-flitS-in the East Winnetka area identified in the Bass Lake Road Corridor
Study. They are now asking for the City to sign an agreement to sell the land to them.
While the City is looking forward to developing new housing on this site, this land sale
agreement may be premature.
With redevelopment projects, the first step is often to reach a preliminary consensus of
how the site build-out will appear. Since there appears to be additional work needed on
the current plan, we would suggest working with Ryland to develop a site plan agreeable
to both Ryland and the City. Ryland has stated that they are hesitant about doing any
additional work without some level of commitment from the City. Ryland is concerned
that the City may decide to work with another developer who might offer a higher price
for the site. Since the council has a/ready selected Ryland as the preferred developer for
the East Winnetka development, we suggest giving them exclusive negotiation nghts
with the City for a certain period of time (e.g. 90 days).
Once the site development plan has been refined, the preparation of a term sheet would
be in order by following a process that was utilized in the Navarre development. The
term sheet would list the basic business terms for the redevelopment of the site. It would
also describe the commitments of both the City and Ryland. During the term sheet
SUITE 1100 SOUTHPOINT OFFICE CENTER o 1850 WEST B2ND STREET · BLOOM~N(;TON, MINNESOTA 5S431.1447
TELB=HO~E g$2J885.Sggg o FACS~I4iLE !~,/S&f-Sg60
process, Ryland would have to provide the City with its justification for any selling price
of the land at less than market value. Dunng this time, a full cietermination of all the
redevelopment costs of the site would be completed. Upon approval of the term sheet,
the preparation of a contract for redevelopment can then be prepared.
In summary we recommend the following:
The City/EDA should adopt a resolution designating Ryland as the only
developer with whom the City will negotiate for the next 90 days.
2 Ryland, with City input, Should revise the preliminary site plan.
3
Within 30 days of the above resolution, a term sheet should be prepared
for approval by the City/EDA and Ryland. A construction pro forma and a
review of market values will be required to determine the sales pnce of the
property and to complete the term sheet.
4
The remaining City/EDA redevelopment costs should be analyzed and
incorporated into a cash flow and Sources & Uses Schedule for a
proposed TIF District (subject to the Special Legislation). A finance plan for
financing the CIty/EDA costs needs further refinement.
6
Upon approval of the term sheet, a contract for private redevelopment can
be prepared. This can be done in concert with the establishment of a TIF
District.
Dunng the term sheet a~d redevelopment contract process, any remaining
properties need to be acquired or a timetable and a process determined
for their acquisition.
We look forward to reviewing any of these activities with you.
CC:
Krass Monroe, P.A.
Attn: Mary E. Molzahn, Sr. Development Analyst
Attn: Gay Greiter, Esq.
G:tW~TA~N~IEW
HOPE~I3g~,C3f~:I3ON~E~U~DER 01.DOC
RYLAND
HOMES
April 7, 2003
Mr. Kirk McDonald
Community Development Director
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re: Proposal for the Winnetka Avenue East Study Area
Dear Mr. Kirk McDonald,
At the request of the City of New Hope, Ryland Homes has amended its proposed site plan
for the Winnetka Avenue East Study Area to include 44 Courtyard Homes. The Courtyard
Home is a single-level detached town home with a full basement. We are excited to bi able
to respond to suggestions and recommendations of city staffand officials in order to develop
a plan that truly fits the needs of the city.
The amended site plan includes a total of 206 residential units in three different building
types, the Carriage Townhome, Heritage Condominium and the Courtyard Home.
The Carriage Townhome is a traditional style row townhome with a rear entry, two-car
tuck-under garage and a lookout basement. Carriage Townhomes come in three distinct
models ranging in size from 1,595 to 1,947 sq. ft. The Carriage Townhome has a variety
of brick and siding front elevations that can be intermixed for more diversity. The
townhome brick can be either full elevation to the ground, or set upon a "stone look"
foundation. The Carriage Townhome's nine different front elevations allow Ryland to
create and recreate each building with a different look than its neighboring unit. The
Winnetka Avenue East Study Area will have 78 Carriage Townhomes in seven and eight
unit building configurations.
The Carriage Townhomes will be targeted toward first-time buyers and first move-up
buyers, young professionals with few, if any children, and the majority of whom are
presently renting. Many single buyers are expected to be attracted to these homes. A
Carriage Home buyer is attracted to the "true" new urban design of the unit, with its
attractive "curb appeal", rear entry garage directly into the home, and the interior
spaciousness with room to grow in the future. Carriage Home base prices will be in the
upper 100's to the low 200's.
The Heritage Condominium is Ryland's most popular and affordable townhome. The
Heritage Condominium comes in two, one level designs (an upper and main level plan) and a
two level townhome ranging in size fi-om 1,276 to 1,671 sq. ft. The Winnetka Avenue East
Site is proposed to have 84 units in a six-unit buildings configuration.
The Heritage condominiums will be targeted toward first time and first move up buyers
as well as some active adults who are interested in the ~ound level garden home. The
Heritage Condominium will be priced in the mid to upper 100's.
Ryland's Courtyard Homes will provide convenient single level living to active adults.
empty nesters and singles. The Courm~ard Home's open floor plans all include a spacious
family and living area and an optional sum'oom or screen porch. Each model contains an
expanded master bedroom with a walk-in closet and master bath. Courrvard Homes range
in size from t 300-1600 sq. ft with a similarly sized full basement for future expansion.
The Courtyard Homes will be priced low to mid 200's.
For your convenience. I have enclosed floor plans, elevations and photographs of each
individual unit type and a copy of the site plan for your review. Please note. that Ryland
Homes is in the process of updating the Courtyard Homes to give it an up-to-date "look"
and amenity package that may alter the enclosed elevations and floor plans.
Ryland Homes hopes that the amended site plan and product mix meets and exceeds the
City's expectations. If you have any questions regarding the amended site plan or newly
introduced Courtyard Home, please contact me at 952-229-6016.
Land Resources Manager
Ryland Homes
7900 West 78u~ Street, Suite 200
Edina, MN 55439
952-229-6016 (Phone)
952-229-6024 (Fax)
eenger~rvland.eom
2
Plan Descriptions:
)OR ~n gt
Brighton: 1671 sq. ft. single-level
townhome with 3 bedrooms, I bath
(optional master bath offmaster
bedroom); walk-in closet in master
bedroom suite; two-story entry foyer
with cascading plant shelves; large
kitchen with comer sink, optional
breakfast island, optional half wall
overlooking living room; living room
with adjoining dining room, access to
deck, 'optional fireplace, optional vaulted
ceilings; 2 car garage; laundry room
behind kitchen.
Ashley: 1276 sq. ft. single-level, side enn-x'
townhome with 2 bedrooms. 1 bath
(optional master bath off master bedroom).
spacious walk-in closet in master bedroom:
2 car attached garage: large living room
with adjoining dining area. optional
fireplace in living room: kitchen with
peninsula countertop overlooking open
dining area; laundry room offkitchen and
accessible from the garage.
Dunham: 1612 sq. ft. 2-level town
home with 2 bedrooms, 1-I/2 baths;
open second floor loft as optional third
bedroom; large walk-in closet off'
private master suite with optional
garden bath; massive living room with
optional fireplace; dramatic two-story
entry foyer; kitchen with comer sink
and large breakfast counter adjacent to
dining room; 2 car garage; laundry
room conveniently located between
kitchen and garage.
Site Plan:
The site plan is designed to promote a sense of pedestrian and new-urbanism principles.
· Residents will enjoy the easily accessible sidewalks and trails that connect each
neighborhood node to open and green space.
Large setbacks (40-50 ft. from the street) are used to help buffer residents from Bass
Lake Road and Winnetka Avenue. This will help to minimize any disturbances
caused from traffic.
To facilitate auto circulation, and to be consistent with neighborhood standards, a
public street will be constructed throughout the development. This will allow for on-
street parking and aid in vehicular circulation.
· Residential parking is provided through a front-loaded, double car garage and two
driveway stalls. Additional parking is provided through on-street parallel parking.
The transition between Heritage Homes and Courty. ard Homes along Winnetka
Avenue is proposed to serve as a neighborhood gathering spot. A gazebo and formal
garden will provide a functional, as well as, aesthetically pleasing community green.
· Storm-water management will be provided on site. Ponds will provide for water
quality and rate control, as well as, provide as an aesthetic amenity.
Project Objectives:
· Ryland's proposal is responsive to the City's objectives by providing affordable
market rate housing.
· The Heritage Condominium provides life cycle housing opportunities by providing
two at grade units in each building, both of which are ADA accessible.
· The site plan provides for a compact, (8-10 units per acre density) higher density
residential use.
· The site plan uses trails and sidewalks to connect the neighborhood with open space
and neighborhood parks.
· The site plan includes an easily accessible transit stop along Bass Lake Road.
· Open space has been concentrated into five areas, providing an abundance of
picnic/green/recreational space for area residents.
· The Heritage Condominium uses a combination of high quality exterior products
including brick and vinyl siding.
4
Project Financing: Ryland is a publicly traded companv listed on the NYSE. financials are
enclosed in a copy of Ryland's 2001 Annual Report. Rv'land plans to finance this pro. iecI
using it cash on hand combined with it existing revolvir~g credit facilities.
Market Research: The Metropolitan Council projects the City of New Hope to add 500
households by the year 2020. Ryland's proposed Heritage Condominium will exemplif3.' the
City of New Hope's commitment to offering a diverse array of housing choices to its
residents. The Brighton and Dunham are attractive to singles and families with children:
while the single level, ADA accessible Ashley is attractive to senior populations. All of the
floor plans available in the Heritage Condor~iniurn are affordable and in-line with area home
prices in the New Hope area.
Utilities: Ryland proposes the development to be connected to public utilities.
Home Owner Association: A homeowner's association will be established to maintain the
buildings and grounds, regulate recreational vehicle and off-street parking, and provide snow
and garbage removal and other typical homeowner association duties.
Ryland hopes this proposal meets and exceeds the City's expectations and looks forward to
working with the City of New Hope. If you desire more information related to Ryland
Homes, please contact one of the listed contacts, or visit our website at www.ryland.com.
5
New Hope
~NiNNETKA AVENUE EAST STUDY AREA -~.-
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ELM
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RYLAND
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SECOND FLOOR
OPT. GARDEN BATH
21'-2" x 20'-6"
LOWER LEVEL
OIq'. SHOWER
~l ,z..I --[-. .. /
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OPT. BEDROOM
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10'-4' x 14' I BEDROOM 3
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w/OPT. BATH
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OPT. RECREATION ROOM
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.*pe~'~catioas withoat ,otice or obligatiott. Copyrigltt. ~tc ~vhtttd Group. htc. 1~9 I.~sucd 0~2
till
The Village at New Hope
prices, specific;~o,~s ss~l~ject ro ch.~n~;e ~,irhot r nn~ice. Sc'c S.~1¢, Cc4,nselc,r for dc~;~ils
PATIO
OPT. GARDEN BATH
MASTER
BEDROOM
· 14' x 14;2'
BEDROOM 2
11' x 10'-3'
STORAGE
GARAGE
FOR 2ND FL
BRIGHTON UNIT
19'-3' x 19'.8'
KITCHEN
LIVING
16'-3' x 13'-9'
DINING
10'-2' x 11'-2'
GARAGE
19'-3' x 19'-8'
PATIO
DINING
FIRST FLOOR
! I I
BEDROOM 3 (OPT. BED. 3)
10'-4' x 11'-2' 10'-4' x 13'-6'
OPT. BEDROOM 3
BEDROOM
13'-6- x lO'-2'
SECOND FLOOR
OPT. ALTERNATE
BATH
OPT. MASTER BATH
p~r c°mm"'ilY aml l~er elevatir n ~ml pl~lion~ .vdecfed.' ldCtl.~e .~¢e wmr.~al¢~ p ~fe.~ional ~...~pecific d~ rail.~' Fl~ml'l~n~' e'~teri~";; aml '~lam#J~tl~eat.r¢'~ mav v.;y
.~l~¢'cificatbm.v t~ilhrmt nntice m' oblig¢ltion. Col~)'righl. Th · RUined Grmq~, Inc,'1999 Revi.~rd 10'07/02.
DECK
LIVING
18'-8' x 13'-7'
DINING
10' x 11'-9'
MASTER
BEDROOM
15' x 13'-4'
OPT. FIREPLACE
- -KITCHEN'--
STORAGE
(OPT. M. BATH)
BEDROOM 2
11' x 10'-4'
M. BA~ ~
IIIII
OPT. MASTER BATH
BEDROOM 3
15'-3' x 11'-2'
OPT. KITCHEN
Heritage
THE AURORA II
ELEVATION A
ELEVATION C
ELEVATION D
Plans, prices, specifications subject to change without notice. See Sales Counselor for details.
.H-'~-H~.._LI.
L _
FIRST FLOOR
OPTIONAL
GARDEN BATH
POWDER BATH
BEDROOM
14'4' X 13'-11'
U.~=H~D ~ (.')
OPTIONAL FINISHED LOWER LEVEL
UNFINISHED LOWER LEVEL
Plans, prices, specifications subject to change without notice. See Sa~es Counselor for details. Revised 02/06/03.
MN Builders License #20035443