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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 -~.- STUDY AREA "A" o~s Q ELM /V I O0 50 0 SCALE IN Scole: 1 Inch RYLAND FEEl : 100 Feet HOHES The Village at New Hope Plan~, t,ficc:~, .~peci~c:~tiom qubj~-~ to clumge x~-i~J~,,a notice. Sec $:t!:s C~,u,m:l~,r £~r d,.'t.,iL. DECK 8'x6' FIRST FLOOR BEDROOM 2 10'-3' x 13'-1' SECOND FLOOR OPT. GARDEN BATH 21'-2" x 20'-6" LOWER LEVEL OIq'. SHOWER ~l ,z..I --[-. .. / IiOIzt :--- BEDROOM 14'-4" x 9'-6" OPT. BEDROOM wi OPT. BATH POI OPT. RECREATION ROOM ~ wi OPT. BATH DECK 8' x 6' ", Opt. Bay H,/ndow ,,' FIRST FLOOR '..ElevC&DOnly .' BEDROOM 2 i 10'-4" x 10' 10'-4' x 14' I BEDROOM 3 SECOND ;I~OOR' OPT. GARDEN BATH Stooge, GARAGE 21'-2" x 20'-6" -~1 UNFINISHED t ~ ~1 BASEMENT IJll I;11 :H I LOWER LEV'EL I1~1 I OPT. SHOWER  1 BEDROOM  14'-4' x 10'-6" :CH I OPT. BEDROOM w/OPT. BATH r~. , , i ...... ~ OPT. SHOWER I:~~1 RECREATION ROOM I ~ ° "T' "wE~"~["AOT"" "O O M DECK 8' X 6' BEDROOM 2 BEDROOM 3 11'-6' x 11'-6' 't1'-3' x 12`-9' MASTER BEDROOM 23°-2' x 12'-10' $1TrlNG Op~onal Vault GARAGE 23'-2' x 20'-5' IIIII L ..... ltl~ ....... I FIRST FLOOR SECOND FLOOR ~ LOWER LEVEL OPT. GARDEN BATH OPT. BEDROOM w/OPT. BATH OPT. SHOWER RECREATION ROOM 16'-5' x 12'-5' OPT. RECREATION ROOM w/OPT. BATH The p~o~htcts and spccificatio~ts ,tentit.u.d ,re sltbje'ct to c'httnge. Phm$ attd dra,'htgs a/v for ilhtst~ttion pu~ose otJI)' and atv not ~ ora legal conmtct. All~rp~a"s~exten~r~"deringsanddi"tenM~nsa~app~htKttc.n~tdra~nt~s~tleatul~t~bjectt~change. Fl~htns. e. vtedor~altd~tanda~lfeatti~smayva~* ~rce"mttt~tti~.tt~tdpct.t~evati~tta"d~p~i~nssc~ected:please~ee)vur~a~e~.p~t~si~t~alf~r~c~icd~ti~s. ~vla.~lHo,trs~'se~'estl~eri~httot,tnl~6'alll~la,s tJ~Jd .*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