EDA 11/10/03OFFICIAL
CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
November 10, 2003
FILE
COPY
President W. Peter Enck
Commissioner Sharon Cassen
Commissioner Don Collier
Commissioner Mary Gwin-Lenth
Commissioner Steve Sommer
2.
3.
4.
Call to order
Roll call
Approval of regular meeting minutes of October 27, 2003
Resolution calling for public hearing to approve sale of city owned property at
7500-7528 42°d Avenue North to JCS Development Inc. and Frey Development
Inc. (improvement project no. 665)
Update on potential redevelopment of Frank's Nursery site at 5620 Winnetka
Avenue North and motion authorizing tax increment financing analysis
(improvement project no. 733)
6. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes
Regular Meeting
October 27, 2003
City Hall
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
IMP. PROJECT 727
Item 4
EDA RESOLUTION
03-08
Item 4
IMP. PROJECT 749
Item 5
New Hope EDA
Page 1
President Enck called the meeting of the Economic Development Authority to order
at 7:41 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 Collier, seconded by Commissioner Sommer,
to approve the Regular Meeting Minutes of August 25, 2003. All present voted
in favor. Motion carried.
President Enck introduced for discussion Item 4, Resolution relating to the
decertification of a parcel from tax increment financing district no. 02-01
(improvement project no. 727).
Commissioner Collier introduced the following resolution and moved its adoption
"RESOLUTION RELATING TO THE DECERTIFICATION OF A PARCEL
FROM TAX INCREMENT HNANCING DISTRICT NO. 02-01
(IMPROVEMENT PROJECT NO. 727)." The motion for the adoption of the
foregoing resolution was seconded by Commissioner Gwin-Lenth, and upon vote
being taken thereon, the following voted in favor thereof: Enck, Cassen, Collier,
Gwin-Lenth, Sommer; and the following voted against the same: None; Abstained:
None; Absent: None; whereupon the resolution was declared duly passed and
adopted, signed by the president which was attested to by the executive director.
President Enck introduced for discussion Item 5, Discussion and update regarding
development proposal for city-owned property at 5501 Boone Avenue North and
direction to proceed with £mancial/tax increment financing analysis (improvement
project no. 749).
Mr. Ken Doresky, Community Development Specialist, stated on June 23, 2003, the
EDA expressed support for a project with Project for Pride in Living (PPL). He
reviewed the actions that have taken place since June. PPL hired Maxfield Research
to conduct a market study for the proposed development. The study concluded that
demand is sufficient to support the proposed condominiums. Also, the study
suggested that PPL split the project into two buildings, one ownership and one
rental which they have done. In addition to the separate buildings, PPL has also
modified the unit mix. The site plan has been changed to a condominium
development with 41 units and a rental building with 35 units. Also as a result of the
market study, four-bedroom condominium units have been eliminated in favor of
fewer bedroom units. And based on EDA commems of June 23, PPL has added six
additional ownership units. The number of rental units has remained the same.
PPL has submitted fimding applications to the Minnesota Housing Finance Agency,
Hermepin County HOME, Federal Home Loan Bank and the Metropolitan Council
for the rental portion of the site. On September 8, 2003, the Council approved a
resolution of support for the Met. Council Predevelopment Gram Application.
October 27, 2003
Mr. Doresky noted that the city partially funded the original purchase of the
property with CDBG funds. Staff has spoken with Hennepin County and learned
that the proposed PPL project does qualify as a CDBG eligible use.
Mr. Doresky reported that PPL has determined that the estimated cost of pilings for
soil correction is $600,000 per building or $1.2 million. PPL has requested that the
city consider the use of tax increment financing as an additional funding source to
help defray the soil correction costs. PPL has agreed to pay the standard financial
analysis deposit used to pay consultant fees.
President Enck inquired whether the tax increment financing request is for both
buildings. Mr. Doresky responded affu-matively.
Mr. Steve Kramer, Executive Director of PPL, was recognized. He announced that
PPL was successful in the latest competitive MHFA Super RFP round. PPL has
received an allocation of tax credits from the MHFA for the proposed development.
President Enck questioned whether the proposed project for 5501 Boone would ever
be tax exempt since PPL is a non-profit organization. Mr. Kramer clarified that the
property would remain on the tax rolls.
Discussion ensued regarding the necessity of an on-site caretaker or manager.
President Enck pointed out that the on-site manager attributed to the successfulness
of the PPL project at 7610 Bass Lake Road. Mr. Kramer introduced Mabruka
Abdisamad, manager of the Bass Lake Court Townhomes, and stated Mabmka will
also manage the rental properties for 5501 Boone. He stated the 5501 Boone
property will have an on-site caretaker. The condominium owners would select a
professional management company. Mr. Steve Sondrall, City Attorney, stated the
condominium association would operate similar to a townhome association.
Mr. Dan Donahue, City Manager, was asked to comment on the tax increment
financing district issue. Mr. Donahue stated he believes the EDA can either modify
the existing district to include the 5501 Boone property or the EDA could create a
separate TIF district.
Mr. Chris Wilson, PPL Project Manager, was recognized. He pointed out that the
buildings have been re-oriented so that they face each other with the pond between
them. He commented on the projected number of units and the condition of the
soils. He noted construction could begin next year.
Mr. Wilson also commented that additional parking was added to the site plan to
accommodate Minnesota Masonic Homes/North Ridge if they desire to rent parking
space from PPL. He indicated if it is determined that North Ridge will not utilize the
parking, the plan will be revised to reflect green space rather than parking space.
Commissioner Collier inquired whether a children's play area/equipment is planned
for the site. Mr. Kramer responded affmmtively.
MOTION
Item 5
Motion was made by Commissioner Sommer, seconded by Commissioner Cassen,
to proceed with the financial/tax increment financing analysis relating to the
development proposal for 5501 Boone Avenue North. All present voted in favor.
Motion carried.
IMP. PROJECT 754
Item 6
President Enck introduced for discussion Item 6, Motion authorizing staff to meet
with representatives of Bear Creek Capital and property owners of 7901 Bass Lake
Road and 5539/5549 Winnetka Avenue to negotiate potential property acquisition
for redevelopment purposes (improvement project no. 754).
New Hope EDA
Page 2
Mr. Kirk McDonald, Director of Community Development, stated at the EDA
meeting of August 25, 2003, the EDA reviewed correspondence from Bear Creek
October 27, 2003
MOTION
Item 6
ADJOURNMENT
Capital and CVS/Pharmacy regarding their continued interest in the sites at the
southwest quadrant of Bass Lake Road and Winnetka Avenue. Bear Creek had
requested that the city retain a qualified appraiser to complete appraisals on the
three properties, at the expense of the developer. The EDA approved moving
forward with the proposal. The developer submitted the appropriate fees to the city
and over the past several months, Shenehon Company completed the appraisals.
When the appraisals were completed, city staff and the city attorney met with the
developer to review the appraisals and discuss the next appropriate steps. It was the
consensus of the developer and city staff/consultants that the next recommended
step would be for both the developer and city representatives to meet together with
each individual property owner to determine their interest in cooperating on a
potential redevelopment project. Staff is requesting authorization to assist with the
coordination of such a meeting and to participate with the developer in a negotiation
meeting.
The purpose of the meetings with the property owners at 5539/5549 Winnetka and
7901 Bass Lake Road would be to determine if the properties could be acquired on
a willing seller basis or not and to emphasize the city's interest in seeing this
potential redevelopment project move forward. The results of those meetings would
be brought back and presented to the EDA to determine the future action steps.
Commissioner Sommer inquired whether staff time would be at the developer's
expense.
Mr. McDonald stated typically the city charges developers for billable consultant
time but not for city staff time. He projected a total of two hours (one hour per
meeting).
Commissioner Sommer noted the discussions may be futile if the school district
does not wish to sell any of its property.
Mr. McDonald stated staff has shared the proposal and plan with the superintendent
of ISD 281. He stated although it is too early to determine whether the project will
require school district property or not, he does not believe the school district is
adverse to working with the city. He stated additional information regarding the site
size will be revealed upon completion of the storm water analysis.
Motion was made by Commissioner Gwin-Lenth, seconded by Commissioner
Collier, authorizing staff to meet with representatives of Bear Creek Capital
and property owners of 7901 Bass Lake Road and 5539/5549 Winnetka Avenue
to negotiate potential property acquisition for redevelopment purposes
(improvement project no. 754): All present voted in favor. Motion carried.
Motion was made by Commissioner Sommer, seconded by Commissioner Cassen,
to adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 8:14 p.m.
Res, pectfully submitted,
Valerie Leone
City Clerk
New Hope EDA
Page 3
October 27, 2003
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Community Development . _ 11-10-03 EDA
~' - Item No.
By: Kirk McDonald, Director of CD
& Ken Doresky, CD Specialist B 4
RESOLUTION CALLING FOR PUBLIC HEARING TO APPROVE SALE OF CITY OWNED PROPERTY AT
7500 - 7528 42ND AVENUE NORTH TO JCS DEVELOPMENT INC. AND FREY DEVELOPMENT INC.
(IMPROVEMENT PROJECT NO. 665)
ACTION REQUESTED
Staff is requesting EDA approval of the attached resolution scheduling a public hearing for the sale of City-
owned property located at 7500-7528 42® Avenue North. The public hearing will be held on November 24
2003. Also at tonight's meeting, staff will present a brief update of the project to date.
On November 24, staff will present the following three items for EDA consideration:
1. Purchase Agreements: Purchase agreements have been submitted and attached from both Culver's
Restaurant and Frey Development (Office Condominiums). The City Attorney will prepare a
development agreement for the site for consideration at a later date. Finally, the city will close on the
property after planning and zoning approvals (expected during the winter), similar to the procedure
followed for the sale of 9200 49th Avenue North to the Plymouth Heights Pet Hospital.
2. Restrictive Covenant: The Covenant, prepared by the City Attorney and approved by the Minnesota
Pollution Control Agency (MPCA), restricts use of the property and imposes maintenance and reporting
requirements. Any buyer would be required to adhere to the Restrictive Covenant. The MPCA
continues to exercise control over this property. Therefore, the MPCA is requiring the City to record a
Declaration of Covenants against this property prior to its sale for redevelopment purposes.
3. Environmental Monitoring Proposal: Diversified Environmental, the city's environmental consultant has
submitted a proposal to oversee the final environmental responsibilities prior to project completion.
Many activities are required by the MPCA and are outlined within the Restrictive Covenant to ensure
proper redevelopment of the site. Diversified Environmental has been assisting the city with this site
since the contamination was originally discovered in 1984.
POLICY/PAST PRACTICE
City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within
the City. The EDA has been addressin~l the commercial portion of this ~loal throu~lh the cit)/'s man)/
h\RFA\PLANNING\Electronic Industries\Q - Schedule PM.doc
Request for Action Page 2 11-10-03
development activities, including selling city-owned property for redevelopment.
BACKGROUND
As you know, the city has been working for many years to initiate the environmental cleanup process and
subsequent commercial redevelopment of this site. On June 23, 2003, the EDA reviewed a revised joint
development proposal featuring two uses: a Culvers restaurant on the western portion of the site and three (3)
office condominium buildings (eight (8) separate ownership units) on the eastern and northern portion of the
site. The EDA was supportive of the developer's offering of a combined $510,000 for the site, or $4.62 sq. ft.
and directed staff to prepare a purchase agreement for the property. Since June 23, the following activities
have occurred:
Purchase Agreements: The City Attorney prepared purchase agreement for both JCS Development
Inc. (Culver's Restaurant) and Frey Development Inc. (Office Condominiums). Attached, please find
copies of the signed agreements. The documents will not be fully executed until following the public
hearing on November 24, 2003.
Developer Coordination: Staff has continued to coordinate with the developers regarding the proposal.
The Office Condominium component of the proposal had some difficulty with investors, but is now
ready to proceed. Also, staff and the City Attorney met with both proponents a number of times to
discuss the environmental restrictive covenant, purchase agreements and the general project.
Platting & Survey: In order to sell each developer a portion of the property staff has coordinated a plat
and survey of the property. A preliminary and final plat will be approved as part of the required planning
process.
Environmental Restrictive Covenant: The City Attorney prepared the final version of the Restrictive
Covenant that will be recorded against the property. Due to the property's polluted state, the MPCA
exercises control over the property. Therefore, the MPCA is requiring the city to record a Declaration of
Covenants against this property prior to its sale for redevelopment purposes. The covenant restricts
use of the property and imposes maintenance and reporting requirements. Any buyer would be
required to adhere to the Covenant. Pursuant to the guidelines provided by the MPCA, the City
Attorney and the city's Environmental Consultant prepared an initial draft of the proposed Declaration
of Covenants. This draft was submitted to the MPCA for review and comment. The MPCA returned a
"black-lined" version of the initial draft indicating the changes they would like made to the proposed
Declaration of Covenants. The changes requested by the MPCA to the initial draft were relatively few
and generally non-substantive. The City Attorney reviewed the changes required by the MPCA and
prepared the proposed final Declaration of Covenants for EDA consideration on November 24.
Environmental Activities: Diversified Environmental, the city's environmental consultant has been
overseeing site cleanup activities and performing various site responsibilities as needed. Diversified
Environmental has submitted a proposal for EDA consideration on November 24 to oversee the final
environmental responsibilities prior to project completion. Many activities are required by the MPCA
and are outlined within the Restrictive Covenant to ensure proper redevelopment of the site. Diversified
Environmental will prepare the State VIC (Voluntary Investigation Cleanup) application for "No
Association" letters for the developers, as well as the related and required contingency plan for testing
and handling of any contaminants disturbed during redevelopment construction activities. Diversified
Environmental has been assisting the city with this site since the contamination was originally
discovered in 1984.
Site Cleanup Activities: There has been many cleanup activities this past summer and fall, and the
project has passed a significant milestone. Three rounds of permanganate injection were completed
into the upper aquifer, and follow-up testing has shown that contaminant levels remain consistently Iow
enough that MPCA has determined that the last two planned rounds of injection are not warranted.
This decision has had the net effect of expediting completion of this portion of the work, as well as
Request for Action
Page 3 11-10-03
conserving grant funds. The conservation of DTED funds for this work has already been incorporated
into the remaining DTED budget through our correspondence with DTED staff.
A bench-scale test of geologic materials from the lower aquifer, not originally envisioned in our original
budget, was recently proposed to be funded by DTED grant funds, approved by DTED staff, and was
more than paid for through use of saved costs from the upper aquifer injection program. The testing
involved evaluation of the level of permanganate uptake by inorganic soil materials in the aquifer.
Testing has been completed, and its results will lead to a revision of protocols for injection into the
lower aquifer, that also is expected to result in considerable cost savings. Fundamentally, the change
in protocol will be to inject more permanganate into fewer injection points, thus saving considerable
drilling equipment costs. The revised protocol is currently being drafted, and we anticipate submittal to
MPCA for review and approval shortly. Injections into the lower aquifer are planned to begin in
November and to be completed by the end of 2003.
The new remediation building for cleanup of the lower aquifer has been constructed on the Gill
Brother's Funeral Home site and is operational. Brick siding to match the funeral home is expected to
be completed by the end of the year. The existing remediation shed and equipment on the former El
site is expected to be demolished and removed by the end of the year.
The City has continued to facilitate pay requests and project updates to both the Department of
Employment and Economic Development (DEED) (formally Department of Trade and Economic
Development (DTED)) and Hennepin County. Staff anticipates that all DEED-funded cleanup activities
will be completed by the end of the grant term of June, 2004.
Additional Background
On August 25, 2003, the Council approved a motion ratifying staff's action of sending notice to the Sunshine
Factory restaurant regarding termination of the Non-Exclusive License Agreement for the restaurant's use of
city property located at 7528 42nd Ave. N. for temporary parking. The agreement officially expired on June 9,
2003. Staff indicated to the Sunshine Factory that the parking lot can remain in use until the proposed
development occurs. Also, staff informed the restaurant that a shared parking arrangement would be
proposed to the developers.
On May 27, 2003, the Council scheduled a public hearing to initiate the process for vacating a public alley
easement at this site. The easement is no longer necessary and vacation of the easement will aid in
redevelopment of the parcels. On June 23 a public hearing Was held to vacate the easement.
On January 13 2003, the Council approved a cost-sharing agreement with the Responsible Party (RP),
Electronic Industries to facilitate the RP cleanup match funding and outline cleanup responsibilities. Electronic
Industries is in the process of obtaining a building permit for the new remediation system and scheduling
remediation activities.
On April 8, 2002, the City Council approved resolutions authorizing staff to apply for cleanup funding from
DTED and Hennepin County for the City-owned site at 7516 42nd Avenue North, the former Electronic
Industries site. On July 23, the Hennepin County Board approved funding for the project in the amount of
$31,125. In June, DTED approved $217,860 for the project. On July 22, the Council passed a resolution
formally authorizing the DTED grant agreement. On August 12, the Council passed a resolution formally
authorizing the Hennepin County grant agreement.
As mentioned previously, the City initiated the grant process in order to expedite the cleanup of the site and
market the property for commercial redevelopment. In the spring of 2000, the City applied for and received a
Contamination Investigation and Remedial Action Plan (RAP) Development Grant from DTED to determine the
extent of contamination, develop a RAP and prepare for the submission of the follow-up DTED cleanup grant.
The RAP was completed during the fall of 2001. The City was funded by DTED in the amount of $217,860,
Request for Action Page 4 11-10-03
Hennepin County in the amount of $31,125 and Electronic Industries is responsible for $82,995 (25% match).
The total cleanup costs are estimated at $331,980. At the time of grant submission, the City had received a
proposal for the office condominiums. Using this development proposal, DTED rated New Hope's application
as #1 in the State due to the economic development and job creation potential. Culvers/RSDS came later in
the process and staff suggested that they provide a joint development proposal with the office condominium
developer which they have done.
At the time the contamination was discovered in 1984, the MPCA identified Electronic Industries as the
responsible party. With this designation, Electronic Industries became legally responsible for the investigation
and cleanup of the contaminants. By the early 1990s, the MPCA and Electronic Industries developed a
Remedial Action Plan (RAP) that identified the stages and timeline for the site cleanup. This RAP called for the
inadequate as it would take many more years to complete in its present state.
On February 11, 2002, the Council authorized staff to obtain a property appraisal update for 7516 42nd
Avenue North, the former Electronic Industries site for the cleanup grant proposals. Also, the Council
authorized staff to obtain an appraisal update of all three accumulated sites, post-cleanup (7500, 7516 and
7528) to be used for discussions with developers regarding the potential sale and redevelopment of the
property. The accumulated site appraisal was completed on April 22, 2002 and lists the remediated value at
$730,000.
Also on February 11, in order to continue activities toward the cleanup and redevelopment of this site, the
Council approved an updated Request for Proposals (RFP) for the site and authorized staff to distribute the
RFP. The Council approved a similar effort in February 2000. At that time, staff distributed the proposal
information to thirty-eight (38) potential developers. The second time, a specific effort was made to target
Brownfield developers as RFP recipients. Staff sent the updated RFP to one hundred and eighty-five (185)
developers, many with significant Brownfield redevelopment experience. In addition, staff sent the RFP to the
original list developed in 2000, for a total of two hundred and twenty-three (223) recipients. The attached
development proposal was received as a result of the RFP effort approved in the spring of 2002.
Staff coordinated with the Hennepin County Assessor's and Property Tax Offices to obtain a preliminary
estimate of taxes for this proposal. The Hennepin County Assessor's Office provided an estimated overall site
value with the improvements and environmental remediation at $1.8 million. Using 2003, tax rates, the
Property Tax Office estimated that overall property taxes would be $71,000 with the City's share being roughly
$12,000 per year.
The property is zoned CB, Community Business. The site is properly zoned for both components of this
proposed development. Due to the joint development, shared parking and access and individual ownership of
the office uses, the City Planner has indicated that a PUD would be appropriate in this case.
On June 23, 2003, the EDA reviewed a revised joint development proposal featuring two uses: a Culvers
restaurant on the western portion of the site and three (3) office condominium buildings (eight (8) separate
ownership units) on the eastern and northern portion of the site. The EDA was supportive of the developer's
offering of a combined $510,000 for the site, or $4.62 sq. ft. and directed staff to prepare a purchase
agreement for the property. The total land area is 109,899.1 sq. ft. or 2.52 acres. Development restrictions as
a result of the attached declaration of covenants limit the future use of the site and overall value. Staff,
including the Director of Finance recommended the proposed purchase price taking into account the location,
contamination issues and development restrictions. According to the Director of Finance, the City considered
paying $6 per square foot for the Robbinsdale School District 281 property located at the southeast corner of
42®
and Winnetka Ave. N. Although the subject location s good, it is not as highly desirable as the school
district site and has restrictions, therefore staff thought that $4.62 sq. ft. was reasonable. An appraisal
completed on 4-22-02, lists the "as remediated" market value at $730,000. The Hennepin County Assessor's
Office estimated land value at $600,000.
The City has been working for many years to initiate the environmental cleanup process and subsequent
Request for Action Page 5 11-10-03
commercial redevelopment of this site. 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 proposal. 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 County approved grant. Culver's restaurant/RSDS came later in the process and staff suggested
they provide a joint development proposal with the office condominium developer which they have done. Staff
has been in contact with DTED regarding the revised proposal. DTED indicated that they did not have any
issue with the addition of a Culver's restaurant at the site and it will not affect the cleanup grant. Also, the
proposed development will not conflict with the attached MPCA imposed Declaration of Environmental
Restrictive Covenants.
The developers will be required to submit a storm water dedication fee for the property. Due to the
groundwater contamination, the MPCA will not allow a storm water pond to be constructed at the site,
therefore the City Engineer prepared an estimated cash fee that would be required for regional water quality
improvements. The City Engineer is studying regional improvements, not only for the subject site, but the
many other redevelopment plans in the City Center area. The City Engineer recommended that the proposed
development contribute $47,100 for the regional improvements (please see attached memorandum). The
developers have agreed to pay the fee. The City Attorney stated that the fee would be outlined in the
upcoming development agreement.
Although on June 23, the Council approved Ordinance 03-13, An Ordinance Establishing A Park Dedication
Requirement and/or Cash Payment in Lieu of Land Dedication, staff does not believe that this proposal would
be subject to those fees due to the fact that the City has been working with the developers for the past several
months. Other developments that have started prior to the institution of the park dedication fee that do not
require payment include: Woodbridge Senior Cooperative, Plymouth Heights Pet Hospital and St. Joseph
Catholic Church.
FUNDING
The City purchased the three properties including the contaminated property entirely with TIF
Acquisition and demolition costs for all three properties equaled $1,091,709.
funds.
The DTED Contamination Cleanup Grant can pay up to 75% of the cost of cleaning up the contamination.
Electronic Industries has agreed to provide the 25% match. The total estimated cost to implement the RAP is
$324,218. Clay investigation costs incurred by Electronic Industries have been included in the overall project
cost at the request of Electronic Industries in the amount of $7,762, increasing the total cost to $331,980.
Electronic Industries is responsible for providing $82,995 in matching funds. DTED has approved $217,860 in
cleanup funding. Additional funding in the amount of $31,125 has been approved by Hennepin County. The
City is not responsible for contributing funds for site cleanup. Costs incurred by the City's environmental
consultant will be paid with TIF.
ATTACHMENTS
· Resolution
Purchase Agreements
· City Attorney Correspondence, 11-4-03 & 11-3-03
· Location Map & Proposed Site Plan
· City Engineer Memorandum, 4-28-03
· EDA Minutes, 6-23-03
· Public Hearing Notice
EDA RESOLUTION NO. 03-
RESOLUTION CALLING FOR PUBLIC HEARING
TO APPROVE SALE OF CITY PROPERTY AT
7500-7528 42aa AVENUE NORTH TO
JCS DEVELOPMENT, INC. AND
FREY DEVELOPMENT, INC.
BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope
as follows:
WHEREAS, the Economic Development Authority in and for the City of New Hope (hereafter "EDA")
is the fee owner of certain real estate known as 7500-7528 42na Avenue North, New Hope, (hereafter
"Property") legally described on attached Exhibit A and visually represented on attached Exhibit B.
WHEREAS, JCS DEVELOPMENT, INC. (hereafter "JCS") has presented the City with a purchase
agreement (attached as Exhibit C) to buy approximately 57,050 sq. feet of the Property, in accordance
with the terms stated in the purchase agreement, for the purpose of developing and constructing a
Culvers franchise restaurant on the Property; and
WHEREAS, FREY DEVELOPMENT, INC. (hereafter "FREY") has presented the City with a
purchase agreement (attached as Exhibit D) to buy approximately 55,090 sq. feet of the Property, in
accordance with the terms stated in the purchase agreement, for the purpose of developing and
constructing business condominiums on the Property; and
WHEREAS, the EDA determines it is in the best interests of the City to sell the Property to JCS and
FREY pursuant to the terms of the attached purchase' agreements after a public hearing is held to
consider public testimony on said sale as required by Minn. Stat. §469.029(2); and
WHEREAS, the EDA's obligation to sell the Property to JCS and FREY per the attached purchase
agreements will still be dependant on the execution of Development Agreements with the City for a
Culvers franchise restaurant and business condominiums subsequent to compliance by JCS and FREY
with the City's planning process per Chapter 4 of the New Hope City Code.
NOW, THEREFORE, BE IT RESOLVED by the EDA as follows:
1. That the above recitals are incorporated herein by reference.
-1-
o
That the sale of the Property to JCS and FREY per the terms of the attached purchase
agreements be considered at a public heating to be held at the November 24, 2003 EDA
meeting and that the Executive Director is hereby authorized and directed to publish
notice of the proposed sale of the Property to JCS and FREY in accordance with the
terms of the attached purchase agreements.
Dated the l0th day of November, 2003.
W. Peter Enck, President
Attest:
Daniel J. Donahue, Executive Director
P:~Attomey~DJD~2. City of New Hope\99.11288 - Sale of El Sit~\99.11288-012-Resolution (Public Hearing).doc
-2-
EXHIBIT A
LEGAL DESCRIPTIONS
"Property" means the real estate situated in the County Hennepin, State of Minnesota, described as
follows (parcel numbering coincides with attached Exhibit B):
Parcel 6.
Legal Description. That part of Lot 5, "Auditor's Subdivision Number 324, Hennepin County,
Minnesota" described as follows: Commencing at the point of intersection of the North line of
Rockford Road and the East line of said Lot 5; thence North along said East line a distance of
350 feet; thence West parallel with the North line of Rockford Road a distance of 100 feet;
thence South a distance of 350 feet to a point on the North line of Rockford Road which is
distant 100 feet West of the point of beginning; thence East along said North line a distance of
100 feet to the point of beginning.
Address. 7500 42nd Avenue North, New Hope, MN.
Proper .ty Identification Number. 17-118-21-22-006.
Parcel 7.
Legal Description. The West 95 feet of the East 195 feet of the South 350 feet of Lot 5,
Auditor's Subdivision No. 324, Hennepin County, Minnesota.
Address. 7516 42nd Avenue North, New Hope, MN.
ProperS. Identification Number. 17-118-21-22-0007.
Parcel 8.
Legal Description. That part of Lot 5, "Auditor's Subdivision Number 324, Hennepin County,
Minnesota" described as follows: Commencing at a point on the North line of Rockford Road
distant 195.0 feet Westerly of the East line of said Lot 5; thence North parallel with the East line
of said Lot 5 a distance of 350.0 feet; thence West parallel with the North line of Rockford Road
a distance of 125.4 feet, more or less, to a point 48.95 feet East of the West line of said Lot 5, as
measured at right angles thereto; thence South parallel with the West line of said Lot 5 a
distance of 350.0 feet to the North line of Rockford Road; thence Easterly along the North line
of Rockford Road a distance of 125.4 feet, more or less to the point of beginning.
Address. 7528 42nd Avenue North, New Hope, MN.
Property Identification Number. 17-118-21-22-0008.
-3-
EXHIBIT B
VISUAL REPRESENTATION OF PROPERTY
(scanned - not to scale)
1/8 Section Map
7500, 75~6, & 752'8 42"d Avenue
7.528 ! 7.516 i 7500
(8) : : (6)
(7) :
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~2~ *v~ (ROCKFORD ] RD) '
--~- ~ .~.~m ~' ,s.r
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-4-
EXHIBIT C
PROPOSED JCS PURCHASE AGREEMENT
-5-
PURCHASE AND SALE AGREEMENT
This Purchase and Sale Agreement ( Agreement ) is made bv and between the ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF NEW HOPE, MINNESOTA.
("Seller"), and JCS DEVELOPMENT, INC., a Minnesota Corporation ("Buyer"). In
consideration of the covenants and agreements of the respective parties as hereinafter- set forth,
Seller shall sell and Buyer shall purchase a tract of land ("Property") as outlined on Exhibit A,
and which is legally described on attached Exhibit B.
1. Purchase Price. The purchase price for the Property. shall be Three Hundred Eighty
Thousand Dollars ($380,000.00), which Buyer sha/l pay as follows: "Earnest Money" of On~
Thousand Dollars ($1,000.00) will be submitted by Buyer to Seller on the Effective Date as
defined below and made payable to a Title Company to be mutually agreed upon by the parties
("Escrow Agent"). Buyer also shall pay Three Hundred Seventy Nine ThouSand Dollars
($379,000.00) on the date of closing
2. Title Conveyed. At the time of Closing, Seller shall convey or cause to be conveyed a general
Warranty Deed (the "Deed"), conveying marketable title of record, free and clear of liens,
encumbrances, assessments restrictions, except for the "Permitted Exceptions" (as hereinafter
defined).
3. Representations and Warranties by Seller. Seller represents to Buyer that:
a) Seller owns the Property and has the right to sell the same, and that there are no
unrecorded contracts, leases, easements or other agreements, or claim of any third party
affecting the use, title, occupancy or development of the Property, and no person, firm or
entity has any right of refusal, option or other right to acquire ail or any part of the
Property. Buyer specifically acknowledges that this provision does not apply to the
Declaration of Covenants currently being developed or the Minnesota Pollution Control
Agency's interest in the Property. The Declaration of Covenants submitted by the Seller
to the Minnesota Pollution Control Agency and previously provided to Buyer is attached
hereto as Exhibit C. Buyer acknowledges that the Minnes
may require changes to the Declaration of Covenants ora Pollution Control Agency
b) Seller shall cooperate with Buyer in its efforts to obtain the approval of all public or
governmental authorities as to all matters relating to zoning, subdivision, lot splits, special
use permits, access, or similar requirements for a Culver's restaurant with approximately
120 seats and a drive-through window ("Buyer's/ntended Use"). Seller shall .join in such
applications and other documents as may be necessary or required by governmental or
regulatory bodies, including parking and access easements, to develop the Property for
Buyer's Intended Use.
c) Seller's warranties and representations contained in this Section 3 shall survive the delivery
of the Deed.
1
I I/O~r200.~ at 12:53
d) If the real property is subject to restrictive covenants, Seller has not received any notice
from any person as to a breach of the covenants. Seller has not received any notice from
any governmental authority concerning any eminent domain, condemnation, -~pecial taxine
district, or rezoning proceedings. ~
e) The Property is not subject to any assessment or valuation agreement that is not listed as
one of the Permitted Exceptions, and Seller has not received any notice of actual or
threatened special assessments or reassessments of the Property
f) To the best of Seller's knowledge, there are no septic systems on the Property.
Buyer hereby acknowledges that Buyer is purchasing the Property in "as is" condition,
subject to the terms of this Agreement. Seller agrees that any breach of the forgoing
representations shall be grounds for Buyer to terminate this Agreement. In the event of such
termination Buyer s Earnest Money shall be returned.
4. Conditions of Offer. The Buyer's obligation to close the transaction contemplated by this
Agreement is subject to the satisfaction, of the following conditions on or before the Due
Diligence Period, as defined below:
a) Review and approval of a title commitment or binder showing that the title to the Property
conforms to the requirements of Section 7. Buyer acknowledges that if Buyer closes the
transaction, title to the Property will be subject to the following Permitted Exceptions:
(i) lien of real estate taxes not yet due and payable in 2003;
(ii) rights-of-way for drainage ditches, drain tiles, feeders, laterals and underground
pipes, if any;
(iii) all dedicated rights-of way; and
(iv) all easements, restrictions, covenants and agreements which are depicted by the public
records, so long as the Buyer's intended use of the Property is not materially impaired
by such matters of record. Buyer acknowledges that the Declaration of Covenants
attached as Exhibit C as amended pursuant to the requirements of the Minnesota
Pollution Control Agency will not be considered to materially impair Buyer's
intended use of the Property.
b) Buyer, prior to closing, obtaining approval for ingress and egress to the Property and ali
zoning changes, including rezoning, variances, special use permits, subdivisions and any
other governmental permits, consents and authorizations, which are necessary or desirable
for Buyer's Intended Use, including without limitation final building permits.
c) Obtaining financing under reasonable terms and conditions suitable to Buyer.
2 I 1/04g2003 at 12:53 PM
d)
Buyer and Seller agreeing to terms and provisions of a document which will allow Buyer
to obtain and subsequently construct and maintain cross easements for access and parkine
("the Easement").
e) That there is or will be at the time of closing direct access to and from the Property on
publicly dedicated streets (42"d Avenue and Quebec Avenue), and, to the best of Seiler's
knowledge, no fact or condition exists which would result in the termination of access to
and fi-om the Property necessary for the operation of the Property.
f) Obtaining corporate approval from Culver's Franchising, Inc.
If any conditions remain unsatisfied or has not been waived by Buyer one hundred (120) days
after the Effective Date, this Agreement shall become null and void and neither party shall have
any further obligation, and the Earnest Money shall be refunded. With respect to the above
described conditions in favor of Buyer, Buyer shall give notice of its desire to terminate this
Agreement for failure to satisfy or fulfill any of said conditions on or before the end of the "Due
Diligence Period" which means the period commencing on the Effective Date and ending one
hundred twenty (120) days thereafter. If this Agreement is terminated by Buyer pursuant to this
paragraph, the Earnest Money shall be promptly returned to Buyer, both Buyer and Seller shall
execute and deliver to the other an original cancellation of the Agreement, and neither party shall
have further rights and obligations hereunder except with respect to the indemnifications given by
Buyer in this Agreement that provide for continued existence following the termination of this
Agreement. If no notice of termination is given within the specified time period with respect to
any of the conditions listed above, such condition shall be deemed to be waived by Buyer and
Buyer shall proceed to close this transaction in accordance with the other terms and conditions of
this Agreement. The Buyer hereby acknowledges that the Buyer
ground water and soil contamination existing on the Property and has been fully informed of the
· ' has had ample opportunity to
~nvest~gate and inform itself regarding these circumstances. Buyer further acknowledges that this
contamination does not render the Property unsuitable for development in connection with
Buyer's Intended Use.
5. Survey. Seller, at Seller's expense and w/thin forty-five (45) days from the Effective Date
agrees to obtain and deliver to Buyer a survey of the Property in accordance with the current
minimum standard detail requirements for ALTA/ASCM land title survey prepared by a surveyor
duly licensed in Minnesota (the "Survey"). Said Survey shall minimally show: area; legal
description dimensions and location of the Property to the nearest monuments, streets and alleys
on all sides; the topography; the location of all available utilities in adjoining streets, alleys or
Property; the location of all improvements and encroachments if any; and the location of all
recorded easements against or appurtenant to the Property. The Survey shall be certified to the
Seller, Buyer, Title Company and Buyer's lender, if any.
6. Access Prior to Closing. Buyer and its employees, agents, and contractors shall have the
right to enter upon the Property for the purpose of conducting examinations and making
measurements, and performing such tests or surveys thereon (including soil borings) as Buyer
3
11/04/2003 at 12~3 PM
desires. Buyer's access to the Property and actions thereon shall be subject to Seller's approval,
and to the extent required by the Minnesota Pollution Control Agency, the approval of the
Minnesota Pollution Control Agency. Buyer agrees to repair or restore any damages caused bx'
Buyer or its employees, agents, or contractors during the course of makihg such~ examinatior~,
measurements or tests in any reasonable manner specified by the Seller or the Minnesota Pollution
Control Agency.
Buyer shall indemnify and hold Seller harmless from and against any lien, claim, loss, liability,
cost, damage or injury asserted against or suffered by Seller or the Property, including but not
limited to attorneys' fees, related to any entry by Buyer, its assigns or any of its agents,
representatives, contractors or employees, as related to this Agreement.
7. Title Commitment and Policy.
a)
b)
Seller shall deliver to Buyer a Commitment for an ALTA Form B owner's policy of title
insurance (the "Commitment") issued by a title company duly licensed in Minnesota
("Title"), covering title to the Property being purchased in the amount of the Purchase
Price. Seller agrees to pay the costs associated with the preparation and issuance of the
Survey and the Title Commitment (collectively "Title Charges"); Buyer shall pay the
premium for the lender's simultaneously issued policy, if any.
Buyer shall have ten (10) days after receipt of the Commitment and Survey to review and
approve the title to the Property and to object to any exception to title that is disclosed in
the Commitment and Survey or which is otherwise discovered by Buyer. In the event that
the Buyer does not within such ten (10) day period give notice to Seller objecting to any
exceptions to title disclosed in the Commitment or the Survey, then all such exceptions
shall be deemed approved and shall constitute "Permitted Exceptions". If Buyer timely
objects to an exception to title then on or before the tenth (10) day following Buyer's
notice of exception, Seller shall remove the exception or notify Buyer that Seller is
unwilling or unable to remove the exception. Within five (5) days of Seller's notice that it
is unwilling or unable to remove an exception to title, Buyer may elect by notice to Seller
to either:
(i)
terminate this Agreement, whereupon the Earnest Money shall be returned to Buyer
and the parties shall be released from all further obligations hereunder; or
continue this Agreement in effect in which event Buyer will be deemed to have
approved the previously defined exception and the same shall constitute a "Permitted
Exception."
Real Estate Taxes and Special Assessments. Real estate taxes due and payable in and for
the year of closing shall be prorated between Seller and Buyer on a calendar year basis
through the actual date of closing, unless otherwise provided in this Purchase Agreement.
Seller shall pay any special assessments at closing.
4 11/04/2003 at 12:53 PM
9. Closing.
a)
Closing shall occur within ten (10) business days after all the conditions of the
Agreement have been satisfied, and in no event later than one hundred thinx, (130)
days after the Effective Date unless both parties agree, in writing, to an emensign.
b) Closing shall occur at Escrow Agent's office.
c) Seller shall deliver at closing the following executed documents:
(i) The Deed conveying good, marketable and insurable title free and clear of all
defects except any which Buyer may have waived in writing prior to closing.
(ii) Affidavit(s) stating that possession of the Property is being delivered free of any
mechanic's or statutory liens against the Property in connection with work
performed prior to closing; Seller is not a foreign person or entity; and such other
affidavits as Buyer may reasonably require.
10. Prorations. Seller shall pay the Title Charges, the cost of recording any instrument (other
than the Deed) necessary to place title in the condition required under this Agreement, state deed
tax, and all special assessments levied, pending or constituting a lien against the Real Property as
of the closing date including without limitation any installments of special assessments including
interest payable with general real estate taxes in the year of closing. Seller will pay general real
estate taxes payable in the year prior to the year of closing and all prior years. Buyer shall pay the
cost of the lender's title policy, sales tax, if any, and recording the Deed. Seller and Buyer will
each pay one-half of customary closing fees. General real estate taxes payable in the ~,ear of
closing shall be prorated by Seller and Buyer as of the closing date based upon a calendar year.
1 I. Condemnation. If, prior to the Closing, all or any part of the Property shall be condemned
by governmental or other lawful authority, Buyer shall have the option of a) completing the
purchase, in which event all condemnation proceeds or claims thereof shall be assigned to Buyer,
or b) canceling this agreement, in which event the Earnest Money shall be refunded to Buyer and
this Agreement shall be terminated with neither party having any rights against the other, and
Seller shall be entitled to any and all condemnation proceeds.
12. Notices. All notices required hereunder shall be in writing and shall be deemed to have been
duly given and received (a) two business days after depositing of the same in the mail if sent by
registered or certified mail, postage prepaid, to the party to whom directed, at such party's
address herein set forth; (b) upon delivery, or attempted delivery if delivered by overnight courier
service or hand delivery; (c) or upon transmission if successfully transmitted by facsimile. Any
party shall have the fight to designate any other address or facsimile number for notice purposes
by written notice to the other party in the manner aforesaid. The address of the parties is as
follows:
1/04/'2003 al 12:53 PM
SELLER:
with copy to:
Ci.ty of New Hope
Dan Donahue, City Manager
4401 Xylon Avenue North
New Hope, MN 55428-4898
Facsimile No.: 763-531-5174
Jensen & Sondrall, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
Facsimile No.: 763-493-5193
BUYER:
with copy to:
John F. Siebert
JCS Development
P.O. Box 636
Anoka, MN 55303
13941 Vinewood Lane
Dayton, MN 55327
Facsimile No.' 763-421-0549,
Dexter J. Marston
~4001
Retail Site Development Services
5775 Wayzata Blvd.
Suite 700
Minneapolis, MN 55416
Facsimile No.: 763-3 77-9002
13. Broker. Buyer and Seller represent and warrant that all brokerage charges incurred, if any,
in connection with this transaction shall be paid by the party authorizing such broker to act in its
behalf.
14. Remedies. If Buyer defaults under the Agreement, Seller shall have the right to terminate the
Agreement by giving written notice to Buyer as provided by law. If Buyer fails to cure such
default as provided by law, the Agreement will terminate, and upon such termination Seller will
retain the Earnest Money. If Seller defaults under this Agreement, Buyer shall have the fight to
seek specific performance and recover as damages from Seller all of Buyer's reasonable out-of-
pocket costs and fees.
15. MPCA VIC Application and Letter. Sellers shall apply for and obtain written assurance
from the MPCA that Buyer are not responsible for cleanup of hazardous materials that remain in
the undisturbed soil and water of the Property (a "No Association" assurance letter). A "No
Association" assurance letter is obtained through application to the Minnesota Pollution Control
Agency ("MPCA") Voluntary Investigation and Cleanup ("VIC") program. So long as Buyers
provide Seller with the "Required Information" (defined below), it shall be the Seller's sole
responsibility to provide Buyers with a "No Association" assurance letter at closing. Buyer must
6 I 1/04/100~, ~112:53 PM
provide Seller with the Required Information sufficiently early enough to provide Seller with
reasonable time to complete the application processes pricer to closing. Seller's failure to provide
a "No Association" assurance letter in accordance with the provisions of this agreement shall be
grounds for Buyer to terminate this Agreement. In the event of such termination Buyer's Earnest
Money shall be returned.
16. Required Information. Buyer is required to provide Seller with the following information
at Buyer's sole expense, in the VIC application:
a)
Site plan (at least current concept plan) and associated text descr/bing nature of
business activities after redevelopment;
b) Grading plan;
c) Geotechnical drilling plan;
d) Subsurface utilities plan;
e) Construction time line; and
f) Any other information required for the completion of the VIC application that Buyer
otherwise needs to prepare in connection with its development of the Property..
Buyer's failure to provide the Required Information in accordance with the provisions of this
agreement shall be grounds for Seller to terminate this Agreement. In the event of such
termination Seller shall receive the Earnest Money.
17. Monitoring During Construction. The parties acknowledge that on-site monitoring of
certain construction activities by an environmental professional will be required. Sellers shall be
responsible for providing a field teclmician to be on-site during:
a) Grading activities near the Restricted Area (as defined in the Declaration of Covenants
attached hereto as Exhibit C);
b) Subsurface excavation of utilities; and
c) Geotechnical drilling activities.
The field technician will monitor excavated soils for the presence of contaminants. If
contaminated soils are detected, they will be stockpiled separately from clean soils for later
disposal. At the conclusion of on-site monitoring activities, the field technician will provide a
letter report of their activities and observations.
18. Monitoring Costs and Responsibilities. Buyers shall be responsible for providing Sellers
with reasonable notice of the above activities so that Sellers will be able to provide the field
technician. If Buyers fail to provide Sellers with such reasonable notice than Buyers shall be
responsible for providing the required field technician and all costs and liabilities associated with
11/04/2003 al 12:53 PM
provision of an appropriate field technician. If provided reasonable notice by Buyers, Sellers shall
be responsible for all cost associated with the provision of the field technician. Buvers shall be
solely responsible for the proper disposal of any comaminants.
19. Future Access and Utility Easements. Buyer hereby acknowledges and a~ees that Buyer
will be required to provide the City of New Hope access and utility easements in connection with
Buyer's future development of the Property and as provided for by New Hope's City Code,
regulations and past practices. Any such easements shall be provided at no cost to the City.
20. Assignment. Buyer may assign its rights hereunder once to .NHC Enterprises, LLC a
Minnesota limited liability company.
IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the latest
date indicated below ("Effective Date").
Seller:
Economic Development Authority of the
City of New Hope
By:
Its:
Daniel J. Donahue
Executive Director
Date
Buyer:
JSC Development, Inc.
Date
P:X. Altomey~JD~2. City. of Ne,n Hol~eLOg. l 1288 -$ale of El 8iteLo9. I 12~9,-001 - JCS gme, hase, Agr~t 6.doe
8 I I/04r2003 at 12:53 PM
EXHIBIT A
Site Plan Shmvin,2 Propert.~
11
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42NDAVENUENORTH
1056787,3 ~ RSDSFr¢.x .doc ~ 9
EXHIBIT B
Legal Description
The West 163 feet of the following described parcel:
That part of Lot 5, "Auditor's Subdivision Number 324, Hennepin County,
Minnesota" described as follows: Commencing at the point of intersection of the
North line of Rockford Road and the East line of said Lot 5; thence North along
said East line a distance of 350 feet; thence West parallel with the North line of
Rockford Road a distance of 320.4 feet more or less, to a point 48.95 feet East of
the West line of said Lot 5, as measured at right angles thereto thence South
parallel with the West line of said Lot 5 a distance of 350.0 feet to the North line
of Rockford Road; thence Easterly along the North line of Rockford Road a
distance of 320.4 feet, more or less to the point of beginning.
10
EXHIBIT C
DECLARATION
OF
ENVIRONMENTAL RESTRICTIVE COVENANTS
THIS DECLARATION is made this day of , 2003, by the Economic
Development Authority &the City &New Hope, a Minnesota municipal corporation.
e
~DEFINITIONS
For the purpose of this Declaration, the following terms shall have the following
meanings:
~. "Building" means that building that was formerly present on the
Property and was formerly used by Electronic Industries, Inc. as its place of
business. The Building has since been demolished.
Commissioner. "Commissioner" means the Commissioner of the MPCA or the
head of any successor entity. Nothing herein shall be construed to prohibit the
Commissioner fi.om delegating the Commissioner's obligations or duties under
this Declaration to the employees, agents, contractors or subcontractors of the
MPCA.
Covellallts." ,,
Covenants mean all of the agreements, covenants, restrictions and
easements contained in this instrument.
.Declaration. "Declaration" means this instrument, including the definitions and
recitals contained herein and the Exhibits attached hereto.
E/. "EI" means Electronic Industries, Inc.
Exhibits." · · ,,
Exhibits mean the exhibits to this Declaration and are as follows:
a. Exhibit 1:1/8 Section Map of Project Site
c. Exhibit 2:1/8 Section Map of Project Site showing Restricted Area
d. Exhibit 3: Table of Contaminants
Page 1 of 17
0
10.
Interested Parties. "interested Parties" mean all parties having any legal or
equitable right, title or interest in the Property or any part thereof and their heirs.
successors and assigns. ("interested Parties" shall be broadly interpreted to
include any and all persons and entities that may in any respect be bound by this
Declaration.)
MPCA. "MPCA" means the Minnesota Pollution Control Agency and includes
its employees, agents, contractors and subcontractors and successors, including
any successor governmental entity. Where this Declaration authorizes or requires
an action by the MPCA, the action is effective if taken by the Commissioner.
Owner. "Owner" means the owner of a fee simple title in the Property or any
portion thereof. "Owner" includes, but is not limited to:
a. Contract sellers and vendees; and
The legal representative, heirs, successors, employees, agents, attorney or
assigns of any person or entity otherwise qualifying as an Owner.
"Owner" excludes:
Those having an interest in the Property or any portion thereof merely as
security for the performance of an obligation; and
d. Those having a lien upon the Property or any portion thereof.
"Owner" includes all persons and entities otherwise qualifying as an Owner even
though there is more than one such persons or entities so qualifying.
Property. "Property" means the real estate situated in the County Hennepin,
State of Minnesota, described as follows (parcel numbering coincides with
attached Exhibit 1):
a. Parcel 6.
Leeal Description. That part of Lot 5, "Auditor's Subdivision
Number 324, Hennepin County, Minnesota" described as follows:
Commencing at the point of intersection of the North line of
Rockford Road and the East line of said Lot 5; thence North along
said East line a distance of 350 feet; thence West parallel with the
North line of Rockford Road a distance of 100 feet; thence South a
distance of 350 feet to a point on the North line of Rockford Road
which is distant 100 feet West of the point of beginning; thence
East along said North line a distance of 100 feet to the point of
beginning.
Page 2 of 2
11.
ii. Address. 7500 42nd Avenue North. New Hope./~fN.
iii. Property Identification Number. 17-118-21-22-000.
b. Parcel 7.
Leeal Description. The West 95 feet of the East 195 feet
of the South 350 feet of Lot 5, Auditor's Subdivision No.
324, Hennepin Count),, Minnesota.
ii. Address. 7516 42nd Avenue North, New Hope, MN.
iii. Property Identification Number. 17-118-21-22-0007.
c. ,,Parcel 8.
Leeal Description. That part of Lot 5, "Auditor's
Subdivision Number 324, Hennepin County, Minnesota"
described as follows: Commencing at a point on the North
line of Rockford Road distant 195.0 feet Westerly of the
East line of said Lot 5; thence North parallel with the East
line of said Lot 5 a distance of 350.0 feet; thence West
parallel with the North line of Rockford Road a distance of
125.4 feet, more or less, to a point 48.95 feet East of the
West line of said Lot 5, as measured at right angles thereto;
thence South parallel with the West line of said Lot 5 a
distance of 350.0 feet to the North line of Rockford Road;
thence Easterly along the North line of Rockford Road a
distance of 125.4 feet, more or less to the point of
beginning.
ii. Address. 7528 42nd Avenue North, New Hope, MN.
iii. ProDert3' Identification Number. 17-118-21-22-0008.
It is specifically noted that the entire Restricted Area is contained within the
Property. Therefore, all references to the Property include the Restricted Area.
.Restricted Are,,. "Restricted Area" means that part of the Property legally
described as follows:
That part of Lot 5, "Auditor's Subdivision Number 324, Hennepin
County, Minnesota" described as follows: Commencing at the point of
intersection of the North line of Rockford Road and the East line of said
Lot 5; thence North along said East line a distance of 250 feet; thence
Page 3 of 3
12.
13.
West parallel with the North line of Rockford Road a distance of 180 feet:
thence South a distance of 250 feet to a point on the North line of
Rockford Road which is a distance of 180 feet West of the point of
beginning; thence East along said north line a distance of 180 feet to the
point of beginning.
The Restricted Area is illustrated in Exhibit 2 for reference.
Tank. "Tank" means the underground tank that was adjacent to the Building and
was the source of the contamination.
TCE. "TCE" means trichloroethylene.
Do
Fo
RECITALS
Current Ownership. The Economic Development Authority of the City of New
Hope is the current fee owner of the entire Property.
Partial Prior Ownership. EI was the fee owner of Parcel 7 of the Property from
before 1984 until Parcel 7 was condemned by the City of New Hope in 1993.
The Final Certificate of the condemnation was filed in the Office of the Hennepin
County Recorder on April 26, 1993 as document number 6117445.
Contamination in General. A portion of the Property was the site of a release of
TCE.
Source of Contamination. The Tank was the source of the release of TCE.
Water Table Contamination. Once the Tank lost its containment ability, the
TCE leaked from the Tank and initially migrated vertically downward through
sandy soils until it reached a clay layer approximately 15 feet below grade where
concentrated TCE has collected in discrete areas. This clay layer, approximately
30 feet thick, also forms a barrier for the downward movement of water from the
surface, and thereby creates a "perched" water table under the Property. The
TCE, being in contact with the water table, has contaminated the water table
aquifer in a localized area.
_1984 Stipulation. In 1984 EI entered into a Stipulation Agreement with the
MPCA, which required EI to properly investigate and remediate the identified
release. EI owned Par,el 7 at the time that it entered into the 1984 Stipulation
Agreement.
!nvestieation and Clean Up Generally. The contamination of the water table
has been the historical focus of EI's investigation and cleanup efforts. These
efforts to date have consisted of several rounds of investigation and the
Page 4 of 4
installation of monitoring wells, a soil vapor extraction system.
system, and a groundwater extraction and treatment system.
following:
an air sparge
including the
The groundwater extraction system was installed in 1987.
The soil vapor extraction system was installed in 1992.
The air sparge system was installed in 1994.
These efforts produced the following information:
Observed TCE levels have ranged from 5 ppm to 290.000 ppm.
Monitoring wells downgradient show ranges of near zero to 41 ppm.
An estimated total of 7,000 pounds of TCE has been removed to date
through the combination of these remediation systems.
.Lower Aquifer Investigation. In 1998, the MPCA required that the aquifer
beneath the clay layer be investigated. Subsurface drilling and sampling of this
aquifer was performed in 1998. Lower aquifer monitoring wells were also
installed in 1998. Initial results from this sampling showed TCE concentrations
up to 124,000 ug/l. This data suggested that the TCE accumulating on the top of
the clay layer had migrated through the clay layer into the lower aquifer.
Amounts of Contaminates Present. TCE, tetraehloroethylene (PCE),
dichloroethylene (DCE), trans-DCE, cis-DCE, vinyl chloride, toluene, and
methylene chloride are all historically documented to be present on the Property,
in the amounts shown on the Exhibit 3 tables.
Location of Contaminates Present. Residual contamination, primarily TCE
exist in subsurface soil as well as groundwater in both the "perched" water table
aquifer and the lower aquifer.
Reports. Many investigative reports have.been completed since 1983, the results
of which are summarized in the Resource Conservation and Recover. Act Facili.ty
Investigation and Corrective Measures Study (February 2001 and revised January,
2002), Results from May 2001 Push Probe Investigation of the Cla. v (June 2001),
Remediation Alternatives Report (August 2001), and the Corrective Measures
Implementation Work Plan (October, 2001) prepared by Frontline Environmental,
LLC, an environmental consulting firm currently located at 17450 Juneberry
Court, Lakeville, Minnesota, 55044. The location of near surface contaminants at
the Property is shown in Figure 1 of the Corrective Measures Implementation
Work Plan.
.City's Am'cement with the MPCA.
the City of New Hope has agreed
restrictive Covenants on the Property.
The Economic Development Authority of
with the MPCA to place the following
Page 5 of 5
COVENANTS
NOW, THEREFORE, the Economic Development Authority of the City of Ness' Hope
makes the following Covenants as to the limitations, restrictions and uses to which the
Property may be put. The Covenants shall run with the Property as provided bv lass' and
shall be binding on all Interested Parties. The Property shall not be held. transferred.
sold, conveyed, occupied, altered, or used in violation of the Covenants.
Use Restrictions for the Entire Property. The Economic Development
Authority of the City of New Hope hereby imposes the following Covenants on
the Property:
The Property may not be used for residential purposes of any kind or for
any use that may result in significant human contact with the soil or
ground water at the Property. "Residential purposes" shall be broadly
defined, but at the least shall include those residential uses defined in th~
City of New Hope Zoning Code.
be
All structures erected shall be constructed above grade (e.g., no
basements, subgrade parking garages, etc.).
Prior to the commencement of any subgrade construction activities or
other disturbances that may require dewatering (e.g. construction
dewatering, etc.), a ground water contamination monitoring plan must be
prepared and submitted to and approved by the MPCA and the City of
New Hope. The ground water contamination monitoring plan must
describe:
i. The methods to be used and actions to taken to monitor the
disturbance and/or removal of contaminated ground water.
ii. Plans for proper containment and disposal of any contaminated
ground water removed as part of the construction activities.
Any permanent structures erected at the Property that will be occupied by
workers of any kind must have a subsurface vapor collection system
designed and installed beneath the structure to collect potential organic
vapors and prevent such vapors from accumulating in the structure. The
vapor collection systems must be "active" vapor collection systems (i.e.
electrical fans will continuously draw air from the collection system and
discharge the air through roof vents). A vapor collection system
implementation work plan shall be reviewed and approved by the MPCA
prior to installation of the system. The work plan shall include a detailed
system design, and a Monitoring and Maintenance plan for the system.
Page 6 of 6
Permanent facilities (e.g. buildings, parking surfaces, etc.) shall be
designed to minimize infiltration of precipitation runoff (rainwater, snoxv
melt) by routing all such precipitation runoff to storm sewers that cam' the
runoff off-site. This shall be done to minimize recharge of subsurthce
ground water so as to prevent mobilization of existing subsurface
contaminants.
f.
New monitoring wells installed in areas of vehicle or pedestrian traffic
shall be constructed as flush-mount monitoring wells.
Use Restrictions for the Restricted Area. In addition to the Covenants
restricting the use of the entire Property, the Economic Development Authority of
the City of New Hope hereby imposes the following Covenant on the RestriCted
Area:
e
Prior to the commencement of any subgrade construction activities or
other disturbances to subsurface soil in the Restricted Area (e.g. utility
installation, excavation, grading cuts, soil corrections, borings, drilling,
etc.), a soil contamination monitoring plan must be prepared and
submitted to and approved by MPCA and the City of New Hope. The soil
contamination monitoring plan must describe:
The methods to be used and actions to taken to monitor the
disturbance and/or removal of contaminated soil.
ii.
Plans for proper containment and disposal of any contaminated soil
removed as part of the construction activities.
!il.
Schedule for submitting a final report to the MPCA describing
volume of soil removed, how it was disposed, and associated
analytical data.
Commissioner Approval. Any action prohibited by the Covenants shall not
occur without the prior approval of the Commissioner.
Requests for the Commissioner's approval must be made in writing to the
Commissioner.
The Commissioner shall have 60 days after the receipt of a request to mail
a response thereto.
The Commissioner's response shall be in writing and shall approve or
disapprove the request or require additional information be provided.
A lack of response from the Commissioner shall not constitute approval
by default or authorization to proceed with the requested activity.
Page 7 of 7
o
The Commissioner's approval max' include conditions that thc
Commissioner deems reasonable and necessav,, to protect public health or
the environment.
f. The Commissioner's approval shall not be unreasonablv withheld.
Covenants Limited. The Covenants do not apply to the following activities so
long as such activities occur outside of the Restricted Area and are not reasonably
likely to result in disturbances of or intrusions into the soil, ground waters and
surface waters of the Restricted Area:
a. Maintenance or repair of existing buildings or structures;
Maintenance or repair of existing underground sewer, water, electrical or
telephone services; or
c. Installation of fencing or signage.
Maintenance Requirements. Generally, steps taken to minimize the infiltration
of water runoff and monitor treatment of on-site contaminants must be
maintained. Specifically, the following is required:
ae
bo
Once placed, parking construction materials (e.g. bituminous, concrete,
etc.) must be maintained to minimize openings in the surface that would
allow precipitation to infiltrate into subsurface soils.
On-site snow storage shall be permitted only on surfaces that convey
runoff to storm sewers that discharge to an off-site location.
Upon reasonable notice to the then-current Owner and at reasonable times,
fi.om time to time permission to enter upon the Property shall be granted to
the MPC& the City of New Hope, EI, and/or their subcontractors,
employees or agents for the purposes of sampling, inspection,
construction, or decommissioning of MPCA required monitoring or
treatment facilities.
Subsurface soil ventilation systems must be monitored and maintained in
working order at all times, in accordance with an MPCA approved
Monitoring and Maintenance Plan. Should programmatic vapor testing
show that vapors are not being collected by the soil vapor collection
system, and that the potential for organic vapors to collect in on-site
buildings is not a human health concern, the Owner may request from
MPCA that the active vapor collection system use be discontinued.
Page 8 of 8
o
o
Se
e
10.
11.
Reservation. Nothing contained in this Declaration shall in an3' way prohibit.
restrict, or limit the City of New Hope. its successors or assigns, from fully
conveying, transferring, occupying, or using the Proper~y for all purposes not
inconsistent with the Covenants.
Duration of Declaration. This Declaration and the Covenants herein shall
continue in perpetuity until terminated, modified, released an&or amended with
the written consent of the Commissioner, such consent not to be unreasonably
withheld.
Amendment of Declaration by Owners. This Declaration and the Covenants
herein shall only be modified, altered, supplemented or amended with the written
consent of the Commissioner, such consent not to be unreasonably withheld.
Amendment of Declaration bx' MPCA.. This Declaration and the Covenants
herein may be modified, altered, supplemented or amended by the MPCA upon
the occurrence of the following:
ae
The MPCA finds that this Declaration is inadequate to protect the public
health or welfare, or the environment;
The MPCA gives notice (written or oral) of such finding to the then
current Owner; and
The MPCA and the Owner enter into a document so modifying, altering,
supplementing or amending this Declaration.
Termination of Declaration, This Declaration and the Covenants herein may be
terminated upon the occurrence and satisfaction of all of the following conditions:
ae
Soil and ground water sampling is conducted on the Property with prior
written notice to and in accordance with a plan approved by the MPCA,
such approval not to be unreasonably withheld; and
be
Based on such samples, the MPCA certifies that the soil and ground water
located within the Restricted Area no longer poses an unacceptable risk to
public health and the environment.
Recordin of Owner Terminations and Amendments. In the event this
Declaration is terminated, modified, altered, supplemented or amended by the
Owner, the Owner shall submit an original document already signed by Owner to
the MPCA with a self addressed retttrn envelope.
ae
The MPCA shall have 60 days after the receipt of such document and
envelope to execute and mail the original document back to the Owner.
Page 9 of 9
12.
13.
Upon receipt of the executed original, the Owner shall be entitled to
record the same.
MPCA's Right of Entry. The Economic Development Authority of the City of
New Hope grants and conveys to the MPCA such rights and interest in the
Property necessary and convenient to enforce the Covenants. including the right.
upon reasonable notice to the then current Owner and at reasonable times, to enter
from time to time upon the Property to inspect and verify compliance with the
Covenants.
Emereencv Procedures. The Economic Development Authority of the City of
New Hope covenants that the procedures set forth below shall be followed when
an emergency requires immediate excavation of contaminated soil to repair utility
lines or other infrastructure on the Property, or to respond to other types df
emergencies (e.g., fires, floods) that may result in an unacceptable risk of harm
from exposure:
de
The Owner shall notify the MPCA within 24 hours of obtaining
knowledge of such emergency conditions.
The Owner shall limit disturbance of contaminated soil and water to the
minimum reasonably necessary to adequately respond to the emergency.
The Owner shall undertake precautions to minimize the exposure of
workers and neighbors to contaminated soil and water (e.g., provide
appropriate types of protective clothing for workers conducting the
excavation, and establish procedures for minimizing the dispersal of
contaminated soil and/or contact with contaminated ground water).
The Owner shall insure that all contaminated soil removed during the
emergency is properly disposed.
Restoration Plan.
ii.
iii.
iv.
The Owner shall prepare a plan to restore the Property (hereinafter
"Restoration Plan") to a level of acceptable risk.
A copy of the Restoration Plan shall be submitted to the MPCA for
approval prior to implementation of the plan.
The Owner shall implement the MPCA approved Restoration Plan.
The Owner shall submit a "Completion Report" to the MPCA after
the plan is implemented. The Completion Report must provide
sufficient information so as to allow the MPCA to determine
whether a level of acceptable risk has been restored.
Page 10 of 10
14.
Disclosures. The Covenants shall be incorporated in full or by reference into all
instruments conveying an interest in and/or right to use the Proper'ty {e.g.
easements, mortgages, leases).
e
GENERAL PROVISIONS
Duration. This Declaration shall run with the land in perpetuity and shall inure
to the benefit of and be enforceable by each Owner and the MPCA.
Amendments. This Declaration may be amended by the unanimous a~eement of
all Owners and the MPCA. Amendments shall not be effective until recorded.
Enforcement. Enforcement of these Covenants shall be by any proceeding at lag'
or in equity against any person(s) or entity(ies) violating or attempting to violate
any of the Covenants. Such proceedings may seek to enforce compliance, to
restrain violations or to recover damages. The Covenants may be enforced by the
MPCA, the City of New Hope or any other Interested Parties.
Waiver. Failure to enforce any Covenant shall not be deemed a waiver of the
right to do so thereafter.
Severabilitv. Invalidation of any one Covenant by judgment or court order shall
in no way affect any other provisions, which shall remain in full force and effect.
Whenever possible, each provision of this Declaration will be interpreted in such
a manner as to be effective and valid under applicable law, but if any provision of
this Declaration is held to be invalid, illegal or unenforceable under any
applicable law or rule in any jurisdiction, suer provision will be ineffective only
to the extent of such invalidity, illegality, unenforceability in such jurisdiction,
without invalidating the remainder of this Declaration in such jurisdiction, and
without effecting the enforceability of any such provision hereof in any other
jurisdiction. Furthermore, in lieu of such illegal, invalid or unenforceable
provision, there will be added automatically as a part of this Declaration a
provision as similar in terms to such illegal, invalid, or unenforceable provision as
may be possible and be legal, valid and enforceable.
Mechanic's Lien. Each Owner agrees to indemnify and hold harmless all other
Owners bom all Mechanic's Liens arising from work for which the Owner is
responsible.
~ The Economic Development Authority of the City of New Hope
may assign any and all of its rights, powers, obligations and privileges hereunder
to any other corporation, association, person or entity. Such assignment or
assignments are effective upon the recording of the instrument making the
assigmnent.
Page 11 of 11
Attorneys' Fees. In the event an.',, part5, seeking enforcement of this Declaration
shall be upheld by the courts, then the defendant or defendants in such case shall
liable for the reasonable attorneys' fees sustained by' the plaintiff, together with
court costs of such action, and the same shall, to the extent permitted by laxv.
constitute a lien upon the property of the defendant.
Gender/Plurality. Whenever the singular is used, it shall include the plural, and
visa versa. The use of any gender shall be applicable to all genders.
IN WITNESS WHEREOF, the Economic Development Authority of the City of
New Hope hereto has executed this Declaration on the day and year indicated above.
THE ECONOMIC DEVELOPMENT
AUTHORITY OF THE
CITY OF NEW HOPE
By:
W. Peter Enck
Its: PreSident
By:
Daniel J. Donahue
Its: Executive Director
STATE OF MINNESOTA )
) SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
,2003, by W. Peter Enek and Daniel J. Donahue, the President and
Executive Director, respectively, of the Economic Development Authority of the City of
New Hope, a Minnesota municipal corporation, on behalf of said Economic Development
Authority.
(Notary Public S~al)
Notary Public
Page 12 of 12
CITY OF NEW HOPE
By:
W. Peter Enck
Its: Mayor
STATE OF MINNESOTA )
COUNTY OF HENNEPIN )
By:
Daniel J. Donahue
Its: City Manager
The foregoing instrument was acknowledged before me this da3' of
,2003, by W. Peter Enck and Daniel J. Donahue, the Mayor and City
Manager, respectively, of the City of New Hope, a Minnesota municipal corporation, on
behalf of said municipal corporation.
(Nohary Public Seal)
Notary Public
Page 13 of 13
Accepted on behalf of
Minnesota Pollution Control Agency
Pursuant to Minn. Stat. ~ I 15B. 1 '~. subd. 15
James L. Warner
Director. Majors and
Remediation Division
State of Minnesota )
)ss.
County of Ramsey )
The foregoing instrument was acknowledged before me this __day of
, 20__, by James L. Warner, Director of the Majors and Remediation
Division of the Minnesota Pollution Control Agency, a Minnesota body politic, on behalf
of the State of Minnesota.
(Notary Public Seal)
Notary Public
Drafted By:
JENSEN & SONDRALL, P.A.
8525 Edmbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424-8811
Page 14 of 14
Project Site (to scale)
7500, 7516, & 7528 42"¢ Avenue
EXHIBIT 1
1" = 200'
...
Of
EXHIBIT 2
The Restricted Area is made up of the following ~'o parcels:
Parcel 1: The South 250 feet of the following described tract:
That part of Lot 5, "Auditor's Subdivision Number 324, Hennepin County.
Minnesota" described as follows: Commencing at the point of intersection of thc
North line of Rockford Road and the East line of said Lot 5; thence North along
said East line a distance of 350 feet; thence West parallel with the North line of
Rockford Road a distance of 100 feet; thence South a distance of 350 feet to a
point on the North line of Rockford Road which is distant 100 feet West of the
point of beginning; thence East along said North line a distance of 100 feet to the
point of beginning.
Parcel 2: The East 80 feet of the following described tract:
The West 95 feet of the East 195 feet of the South 350 feet of Lot 5, Auditor's
Subdivision No. 324, Hennepin County, Minnesota.
p ',Al omey\DJD~2 City olr New Hope\99 11257 - Dectaral~n of Covenams - Commcrc~al~99 11257.002.Declaral~on of Covenants Ex 3 doc
1/8 Section Map
Project Site (to scale)
7500, 7516, & 7528 42'''~. Avenue
1" = 200"
O! ?-;t.M
7528
7516 '
Piz o Pd~..c~
7500
i
EXHIBIT 3
General Total volume of Total volume of i Remedy i RAP Cleanup Goal
contaminant type identified identified I {i.e.. residential
(i.e., DRO, VOCs, contaminated soil contaminated soil i SRVs. industrial
metals, etc.) (cyds) to be remediated t SRVs. etc.)
(cyds) t i
VOCs 13,000 0 ]N/A jN/A
General contaminant Affected aquifer / Approximate dimensions Remedy
type (i.e., DRO, (i.e., water table, of contaminant plume
VOCs, metals, etc. deeper aquifers) on-site. Specify if the
plume extends off-site.
VOCs Water table aquifer 3,200 sq. fi. Potassium permanganate
Plume extends off-site in3ection and ex-sltu soil
vapor and groundwater
treatment
VOCs Lower aquifer 48,000 sq. ft. Potassium permanganate
Plume extends off-site InJection and ex-sltu soil
t vapor and groundwater
treatment
Compound Tier I I Average Concentration I Maximum Concentration
SRV (residentia!)
TCE 90 rog/kg I00 rog/kg 1,900 mg/kg
DCE 0.3 mg/kg <0.5 rog/kg 5 mg/kg
PCE 170 m_g/kg 5 rog/kg 80 mg/kg
Toluene 450 rog/kg <0.3 rog/kg 0.5 mg/kg
Compound
TCE
DCE
PCE
Trans-DCE
Cis-DCE
Vinyl chloride
Methylene Chloride
Toluene
30 ug/L
6 ug/L
7 ug/L
100 ug/L
70 ug/L
0.2 ug/L
50 ug/L
1000 ug/L
Average
Concentration
5,000 ug/L
1 ug/L
<1 ug/L
<1 ug/L
<1 ug/L
<I ug/L
<2 ug/L
<1 ug/L
P:~mmey~DJO~.. City of New
-~ w- ~.,,nmm~a~. I I~-O01 ooet:~rathm of Coemmts(D2).doc
Maximum
Concentration
350,000 ug/L
33 ug/L
5 ug/L
18 ug/L
640 ug/L
10 ug/L
900 ug/L
18 ug/L
EXHIBIT D
PROPOSED FREY PURCHASE AGREEMENT
-6-
PURCHASE AND SALE AGREEMENT
This Purchase and Sale Agreement ("Agreement") is made by and between the ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF NEW HOPE, MINNESOTA,
("Seller"), and FREY DEVELOPMENT, INC. a Minnesota Corporation ("Buyer"). In
consideration of the covenants and agreements of the respective parties as hereinafter set forth,
Seller shall sell and Buyer shall purchase a tract of land ("Property") as outlined on Exhibit A,
and which is legally described on attached Exhibit B.
1. Purchase Price. The purchase price for the Property shall be One Hundred Thirty
Thousand Dollars ($130,000.00), which Buyer shall pay as follows: "Earnest Money" of One
Thousand Dollars ($1,000.00) will be submitted by Buyer to Seller on the Effective Date, as
defined below, and made payable to a Title Company to be mutually agreed upon by the parties
("Escrow Agent"). Buyer also shall pay One Hundred Twenty Nine Thousand Dollars
($129,000.00) on the date of closing
2. Title Conveyed. At the time of Closing, Seller shall convey or cause to be conveyed a
general Warranty Deed (the "Deed"), conveying marketable title of record, flee and clear of liens,
encumbrances, assessments restrictions, except for the "Permitted Exceptions" (as hereina~er
defined).
3. Representations and Warranties by Seller. Seller represents to Buyer that:
a)
Seller owns the Property and has the right to sell the same, and that there are no
unrecorded contracts, leases, easements or other agreements, or claim of any third
party affecting the use, title, occupancy or development of the Property, and no
person, firm or entity has any right of refusal, option or other right to acquire all or
any part of the Property. Buyer specifically acknowledges that this provision does
not apply to the Declaration of Covenants currently being developed or the
Minnesota Pollution Control Agency's interest in the Property. The Declaration of
Covenants submitted by the Seller to the Minnesota Pollution Control Agency and
previously provided to Buyer is attached hereto as Exhibit C. Buyer
acknowledges that the Minnesota Pollution Control Agency may require changes
to the Declaration of Covenants.
b)
Seller shall cooperate with Buyer in its efforts to obtain the approval of all public
or governmental authorities as to all matters relating to zoning, subdivision, lot
splits, special use permits access, or similar requirements for an eight unit town-
office project ("Buyer's Intended Use"). "Town-office" shall mean, for purposes
of this Agreement, a common ownership interest community with commercial
office units constructed on individually-owned lots and common areas owned and
maintained by a non-profit owners' association. Seller shall join in such
applications and other documents, including access and parking easements, as may
be necessary or required by governmental or regulatory bodies to develop the
Property for Buyer's Intended Use.
c)
Seller's warranties and representations contained in this Section 3 shall survive the
delivery, of the Deed.
d)
If the real property is subject to restrictive covenants, Seller has not received any
notice from any person as to a breach of the covenants. Seller has not received
any notice from any governmental authority concerning any eminent domain,
condemnation, special taxing district, or rezoning proceedings.
e)
The Property is not subject to any assessment or valuation agreement that is not
listed as one of the Permitted Exceptions, and Seller has not received any notice of
actual or threatened special assessments or reassessments of the Propert.~.
ir) To the best of Seller's knowledge there are no septic systems on the Property.
Buyer hereby acknowledges that Buyer is purchasing the Property in "as is" condition, subject to
the terms of this Agreement. Seller agrees that any breach of the forgoing representations shall be
grounds for Buyer to terminate this Agreement. In the event of such termination Buyer's Earnest
Money shall be returned.
4. Conditions of Offer. The Buyer's obligation to close the transaction contemplated by this
Agreement is subject to the satisfaction of the following conditions on or before the Due
Diligence Period, as defmed below:
a)
Review and approval of a title commitment or binder showing that the title to the
Property conforms to the requirements of Section 7. Buyer acknowledges that if
Buyer closes the transaction, title to the Property will be subject to the following
Permitted Exceptions:
(i) lien of real estate taxes not yet due and payable in 2003;
(ii) rights-of-way for drainage ditches, drain tiles, feeders, laterals and
underground pipes, if any;
(iii) all dedicated rights-of way; and
(iv)
all easements, restrictions, covenants and agreements which are depicted by
the public records, so long as the Buyer's intended use of the Property is
not materially impaired by such matters of record. Buyer acknowledges
that the Declaration of Covenants attached as Exhibit C as amended
pursuant to the requirements of the Minnesota Pollution Control Agency
will not be considered to materially impair Buyer's intended use of the
Property.
b)
Buyer, prior to closing, obtaining approval for ingress and egress to the Property and
all zoning changes, including rezonmg, variances, special use permits, subdivisions and
any other governmental permits, consents and authorizations, which are necessary or
desirable for Buyer's Intended Use, including, without limitation, final building
permits.
c) Obtaining financing under reasonable terms and conditions.
a)
Buyer and Seller agreeing to terms and provisions of a document which will allow
Buyer to Obtain and subsequently construct and maintain cross easements for access
and parking ("the Easement").
e)
That there is or will be at the time of closing direct access to and from the Property
on publicly dedicated streets (42"a Avenue and Quebec Avenue), and, to the best
of Seller's knowledge, no fact or condition exists which would result in the
termination of access to and from the Property necessary for the operation of the
Property.
If any condition remains unsatisfied or has not been waived by Buyer one hundred twenty (120) days
after the Effective Date, this Agreement shall become null and void and neither party shall have any
further obhgation, and the Earnest Money shall be refunded. With respect to the above described
conditions m favor of Buyer, Buyer shall give notice of its desire to terminate this Agreement for failure
to satisfy or fulfill any of said conditions on or before the expiration of the "Due Diligence Period"
which means the period commencing on the Effective Date and ending one hundred twenty (120) days
thereafter, ff this Agreement is terminated by Buyer pursuant to this paragraph, the Earnest Money
shall be promptly returned to Buyer, both Buyer and Seller shall execute and deliver to the other an
original cancellation of the Purchase and Sale Agreement, and neither party shall have further rights
and obligations hereunder except with respect to the indemnifications given by Buyer in this
Agreement that provide for continued existence following the termination of this Agreement. ff no
notice of termination is given within the specified time period with respect to any of the conditions
listed above, such condition shall be deemed to be waived by Buyer and Buyer shall proceed to close
this transaction in accordance with the other terms and conditions of this Agreement. The Buyer
hereby acknowledges that the Buyer has been fully informed of the ground water and soil
contamination existing on the Property and has had ample opportunity to investigate and inform
itself regarding these circumstances. Buyer further.acknowledges that this contamination does
not render the Property unsuitable for development in connection with Buyer's Intended Use.
5. Survey. Seller, at Seller's expense and within forty-five (45) days from the Effective Date,
agrees to obtain and deliver to Buyer a survey of the Property in accordance with the current
minimum standard detail requirements for ALTA/ASCM land title survey prepared by a surveyor
duly licensed in Minnesota (the "Survey"). Said Survey shall minimally show: area; legal
description dimensions and location of the Property to the nearest monuments, streets and alleys
on all sides; the topography; the location of all available utilities in adjoining streets, alleys or
Property; the location of all improvements and encroachments if any; and the location of all
recorded easements against or appurtenant to the Property. The Survey shall be certified to the
Seller, Buyer, Title Company, and Buyer's lender, if any.
6. Access Prior to Closing. Buyer and its employees, agents, and contractors shall have
the right to enter upon the Property for the purpose of conducting examinations and making
measurements, and performing such tests or surveys thereon (including soil borings) as Buyer
desires. Buyer's access to the Property and actions thereon shall be subject to Seller's approval,
and to the extent required by the Minnesota Pollution Control Agency, the approval of the
Minnesota Pollution Control Agency. Buyer agrees to repair or restore any damages caused by
Buyer or its employees, agents, or contractors during the course of maki~ such examinatior~,
measurements or tests in any reasonable manner specified by the Seller or the Minnesota Pollution
Control Agency.
Buyer shall indemnify and hold Seller harmless from and against any lien, claim, loss, liability,
cost, damage or injury asserted against or suffered by Seller or the Property, including but not
limited to attorneys' fees, related to any entry by Buyer, its assigns or any of its agents.
representatives, contractors or employees, as related to this Agreement.
7. Title Commitment and Policy.
a)
Seller shall deliver to Buyer a Commitment for an ALTA Form B owner's policy of
title insurance (the "Commitment") issued by a title company duly licensed in
Minnesota ("Title"), covering title to the Property being purchased in the amount
of the Purchase Price. Seller agrees to pay the costs associated with the
preparation and issuance of the Survey and the Commitment (collectively "Title
Charges"); Buyer shall pay the premium for the lender's simultaneously issued
policy, if any.
b)
Buyer shall have ten (10) days after receipt of the Commitment and Survey to
review and approve the title to the Property and to object to any exception to title
that is disclosed in the Commitment and Survey or which is otherwise discovered
by Buyer. In the event that the Buyer does not within such ten (10) day period give
notice to Seller objecting to any eXceptions to title disclosed in the Commitment or
the Survey, then all such exceptions shall be deemed approved and shall constitute
"Permitted Exceptions". If Buyer timely objects to an exception to title, then on or
before the tenth (10) day following Buyer's notice of exception, Seller shall
remove the exception or notify Buyer that Seller is unwilling or unable to remove
the exception. Within five (5) days of Seller's notice that it is unwilling or unable to
remove an exception to title, Buyer may elect by notice to Seller to either:
(i)
terminate this Agreement, whereupon the Earnest Money shall be returned
to Buyer and the parties shall be released from all further obligations
hereunder; or
(ii)
continue this Agreement in effect in which event Buyer will be deemed to
have approved the previously defined exception and the same shall
constitute a "Permitted Exception."
8. Real Estate Taxes and Special Assessments. Real estate taxes due and payable in and
for the year of closing shah be prorated between Seller and Buyer on a calendar year basis
through the actual date of closing, unless otherwise provided in this Purchase Agreement. Seller
shall pay any special assessments at closing.
9. Closing.
a)
Closing shall occur within ten (10) business days after all the conditions of the
Agreement have been satisfied, and in no event later than one hundred thirty. (130)
days a_qer the Effective Date, unless both parties agree, in writing, to an extension.
b) Closing shall occur at the Escrow Agent's office.
c) Seller shall deliver at closing the following executed and acknowledged
documents:
(i)
The Deed, conveying good, marketable and insurable title free and clear of
all defects except the Permitted Exceptions.
(ii)
Affidavit(s) stating that possession of the Property is being delivered free
of any mechanic's or statutory liens in connection with work performed
prior to closing; Seller is not a foreign person or entity; and such other
affidavits as Buyer may reasonably require.
10. Prorations. Seller shall pay the Title Charges, the cost of recording any instrument (other
than the Deed) necessary to place title in the condition required under this Agreemem, state deed
tax, and all special assessments levied, pending or constituting a lien against the Real Property as
of the closing date, including without limitation any installments of special assessments including
interest payable with general real estate taxes in the year of closing. Seller will pay general real
estate taxes payable in the year prior to the year of closing and all prior years; Buyer shall pay the
cost of the lender's title policy, sales tax, if any, and recording the Deed. Seller and Buyer each
will pay one-half of customary closing fees. General real estate taxes payable in the year of
closing shah be prorated by Seller and Buyer as of the closing date based upon a calendar year.
11. Condemnation. If, prior to the Closing, ah or any part of the Property shall be
condemned by governmental or other lawful authority, Buyer shall have the option of a)
completing the purchase, in which event all condemnation proceeds or claims thereof shall be
assigned to Buyer, or b) canceling this agreement, in which event the Earnest Money shall be
refunded to Buyer and this Agreement shall be terminated with neither party having any rights
against the other, and Seller shall be entitled to any and all condemnation proceeds.
12. Notices. All notices required hereunder shall be in writing and shall be deemed to have
been duly given and received (a) two business days at~er depositing of the same in the mail if sent
by registered or certified mail, postage prepaid, to the pluty to whom directed, at such party's
address herein set forth; (b) upon delivery, or attempted delivery if delivered by overnight courier
service or hand delivery; (c) or upon transmission if successfully transmitted by facsimile. Any
party shah have the right to designate any other address or facsimile number for notice purposes
by written notice to the other party in the manner aforesaid. The address of the parties is as
follows:
SELLER:
Ci.ty of New Hope
Dan Donahue, City Manager
4401 Xylon Avenue North
New Hope, MN 55428.4898
Facsimile No.: 309-688-9099
with copy to:
Jensen & Sondrail, P.A.
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, MN 55443
Facsimile No.: 763.493-5193
BUYER:
Bernie R. Frey
Frey Development, Inc.
4801 ½ Nicollet Avenue South
Minneapolis, MN 55409
Facsimile No.: 612-827.4331
with copy to:
Dexter J. Marston
~4001
Retail Site Development Services
5775 Wayzata Blvd.
Suite 700
Minneapolis, MN 55416
Facsimile No.: 763-377=9002
13. Broker. Buyer and Seller represent and warrant that ail brokerage charges incurred, if
any, in connection with this transaction shall be paid by the party authorizing such broker to act in
its beha~
14. Remedies. If Buyer defaults under the Agreement, Seller shail have the right to terminate
the Agreement by giving written notice to Buyer as provided by law. If Buyer fails to cure such
default as provided by law, the Agreement will terminate, and upon such termination Seller will
retain the Earnest Money. If Seller defaults under this Agreement, Buyer shaii have the right to
seek specific performance and recover as damages from Seller ail of Buyer's reasonable out=of=
pocket costs and fees.
15. MPCA VIC Application and Letter. Sellers shall apply for and obtain written assurance
from the MPCA that Buyer are not responsible for cleanup of hn?~rdous materiais that remain in
the undisturbed soil and water of the Property (a "No Association" assurance letter). A "No
Association" assurance letter is obtained through application to the Minnesota Pollution Control
Agency ("MPCA') Voluntary Investigation and Cleanup ("VIC") program. So long as Buyers
provide Seller with the "Required Information" (defined below), it shail be the Seller's sole
responsibility to provide Buyers with a "No Association" assurance letter at closing. Buyer must
provide Seller with the Required Information sufficiently early enough to provide Seller with
reasonable time to complete the application processes prior to closing. Seller's failure to provide
a "No Association" assurance letter in accordance with the provisions of this agreement shall be
grounds for Buyer to terminate this Agreement. In the event of such termination Buyer's Earnest
Money shall be returned.
16. Required Information. Buyer is required to provide Seller with the following
information at Buyer's sole expense, in the VIC application:
a)
Site plan (at least current concept plan) and associated text describing nature of
business activities after redevelopment;
b) Grading plan;
c) Geotechnical drilling plan;
d) Subsurface utilities plan;
e) Construction time line; and
Any other information required for the completion of the VIC application that
Buyer otherwise needs to prepare in connection with its development of the
Property.
Buyer's failure to provide the Required Information in accordance with the provisions of this
agreement shall be grounds for Seller to terminate this Agreement. In the event of such
termination Seller shall receive the Earnest Money.
17. Monitoring During Construction. The parties acknowledge that on-site monitoring of
certain construction activities by an environmental professional will be required. Sellers shall be
responsible for providing a field technician to be on-site during:
a)
Grading activities near the Restricted Area (as defined in the Declaration of
Covenants attached hereto as Exhibit C);
b) Subsurface excavation of utilities; and
c) Geotechnical drilling activities.
The field technician will monitor excavated soils for the presence of contaminants. If
contaminated soils are detected, they will be stockpiled separately fi.om clean soils for later
disposal. At the conclusion of on-site monitoring activities, the field technician will provide a
letter report of their activities and observations.
18. Monitoring Costs and Responsibilities. Buyers shall be responsible for providing
Sellers with reasonable notice of the above activities so that Sellers will be able to provide the
field technician. If Buyers fall to provide Sellers with such reasonable notice than Buyers shall be
responsible for providing the required field technician and all costs and liabilities associated with
provision of an appropriate field technician. If provided reasonable notice by Buyers, Sellers shall
be responsible for all cost associated with the provision of the field technician. Buvers shall be
solely responsible for the proper disposal of any contaminants.
19. Future Access and Utility Easements. Buyer hereby acknowledges and agrees that
Buyer will be required to provide the City of New Hope access and utility easements in
connection with Buyer's furore development of the Property and as provided for by New Hope's
City Code, regulations and past practices. Any such easements shall be provided at' no cost to the
City.
IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the latest
date indicated below ("Effective Date").
Seller:
Economic Development Authority of the
City of New Hope
By:
Its:
Daniel J. Donahue
Executive Director
Date
Buyer;
Frey Development, Inc.
/
By:
Its: C-~C
Date
P:~Attom~-y~DJD~2. City ofNcw Hop~99.11288 - 8aio of£1 .~e~9. 11288-00'2. Ftey }~eA~-A~m~nt 6.doc
EXHIBIT A
Site Plan Shoss'in.,o Property
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EXHIBIT B
Legal Description
All of the following described parcel except for the West 163 feet thereof:
That part of Lot 5, "Auditor's Subdivision Number 324, Hennepin County,
Minnesota" described as follows: Commencing at the point of intersection of the
North line of Rockford Road and the East line of said Lot 5; thence North along
said East line a distance of 350 feet; thence West parallel with the North line of
Rockford Road a distance of 320.4 feet more or less, to a point 48.95 feet East of
the West line of said Lot 5, as measured at right angles thereto thence South
parallel with the West line of said Lot 5 a distance of 350.0 feet to the North line
of Rockford Road; thence Easterly along the North line of Rockford Road a
distance of 320.4 feet, more or less to the point of beginning
EXl:rmIT C
DECLARATION
OF
ENVIRONMENTAL RESTRICTIVE COVENANTS
THIS DECLARATION is made tlzis ~ day of. , 2003, by the Economic
Development Authority of the City of New Hope, a Minnesota municipal corporation.
DEFINITIONS
For the purpose of this Declaration, the following terms shall have the following
meanings:
e
.Building. "Building" means that building that was formerly present on the
Property and was formerly used by Electronic Industries, Inc. as its place of
business. The Building has since been demolished.
Commissioner. " · · ,,
Commissioner means the Commissioner of the MPCA or the
head of any successor entity. Nothing herein shall be construed to prohibit the
Commissioner from delegating the Commissioner's obligations or duties under
this Declaration to the employees, agents, contractors or subcontractors of the
MPC^.
e
Covenants. "Covenants" mean all of the agreements, covenants, restrictions and
easements contained in this instrument.
· .Declaration. "Declaration" means this instrument, including the definitions and
recitals contained herein and the Exhibits attached hereto.
E/. "EI" means Electronic Industries, Inc.
Exhibits. "Exhibits" mean the exhibits to this Declaration and are as follows:
Exhibit 1:1/8 Section Map of Project Site
c. Exhibit 2:1/8 Section Map of Project Site showing Restricted Area
d. Exhibit 3: Table of Contaminants
Page 1 of 17
10.
Interested Parties. "Interested Parties" mean all parties having any legal or
equitable right, title or interest in the Property or any part thereof and their heirs.
successors and assigns. ("Interested Parties" shall be broadly interpreted to
include any and all persons and entities that ma3, in any respect be bound by this
Declaration.)
MPCA. "MPCA" means the Minnesota Pollution Control Agency and includes
its employees, agents, contractors and subcontractors and successors, including
any successor governmental entity. Where this Declaration authorizes or requires
an action by the MPCA, the action is effective if taken by the Commissioner.
Owner. "Owner" means the owner of a fee simple title in the Property or any
portion thereof. "Owner" includes, but is not limited to:
a. Contract sellers and vendees; and
The legal representative, heirs, successors, employees, agents, attorney or
assigns of any person or entity otherwise qualifying as an Owner.
"Owner" excludes:
Those having an interest in the Property or any portion thereof merely as
security for the performance of an obligation; and
d. Those having a lien upon the Property or any portion thereof.
"Owner" includes all persons and entities otherwise qualifying as an Owner even
though there is more than one such persons or entities so qualifying.
Prot}erty. "Property" means the real estate situated in the County Hennepin,
State of Minnesota, described as follows (parcel numbering coincides with
attached Exhibit 1):
a. Parcel 6.
Leeal Description. That part of Lot 5, "Auditor's Subdivision
Number 324, Hennepin County, Minnesota" described as follows:
Commencing at the point of intersection of the North line of
Rockford Road and the East line of said Lot 5; thence North along
said East line a distance of 350 feet; thence West parallel with the
North line of Rockford Road a distance of 100 feet; thence South a
distance of 350 feet to a point on the North line of Rockford Road
which is distant 100 feet West of the point of beginning; thence
East along said North line a distance of 100 feet to the point of
beginning.
Page 2 of 2
11.
ii. Address. 7500 42"d Avenue North. New Hope. MN.
iii. Propertx' Identification Number. 17-118-21-22-000.
b. Parcel 7.
Leeal Description. The West 95 feet of the East 195 feet
of the South 350 feet of Lot 5. Auditor's Subdivision No.
324, Hennepin County, Minnesota.
ii. Address. 7516 4?0 Avenue North, New Hope, MN.
iii. Property Identification Number. 17-118-21-22-0007.
c. Parcel 8.
Le£al Description. That part of Lot 5, "Auditor's
Subdivision Number 324, Hennepin County, Minnesota"
described as follows: Commencing at a point on the North
line of Rockford Road distant 195.0 feet Westerly of the
East line of said Lot 5; thence North parallel with the East
line of said Lot 5 a distance of 350.0 feet; thence West
parallel with the North line of Rockford Road a distance of
125.4 feet, more or less, to a point 48.95 feet East of the
West line of said Lot 5, as measured at fight angles thereto;
thence South parallel with the West line of said Lot 5 a
distance of' 350.0 feet to the North line of Rockford Road;
thence Easterly along the North line of Rockford Road a
distance of 125.4 feet, more or less to the point of
beginning.
ii.
..Address. 7528 42nd Avenue North, New Hope, MN.
iii. Property Identification Number. 17-I 18-21-22-0008.
It is specifically noted that the entire Restricted Area is contained within the
Properly. Therefore, all references to the Property include the Restricted Area.
Restricted Area. "Restricted Area" means that part of the Property legally
described as follows:
That pan of Lot 5, "Auditor's Subdivision Number 324, Hennepin
County, Minnesota" described as follows: Commencing at the point of
intersection of the North line of Rockford Road and the East line of said
Lot 5; thence North along said East line a distance of 250 feet; thence
Page 3 of 3
12.
13.
West parallel with the North line of Rockford Road a distance of 180 feet:
thence South a distance of 250 feet to a point on the North line of
Rockford Road which is a distance of 180 feet West of the point of
beginning; thence East along said north line a distance of 180 feet to the
point of beginning.
The Restricted Area is illustrated in Exhibit 2 for reference.
Tank. "Tank" means the underground tank that was adjacent to the Building and
was the source of the contamination.
TCE. "TCE" means trichloroethylene.
Ce
De
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RECITALS
Current Ownership. The Economic Development Authority of the City of New
Hope is the current fee owner of the entire Property.
Partial Prior Ownership El was the fee owner of Parcel 7 of the Property fi.om
before 1984 until Parcel 7 was condemned by the City of New Hope in 1993.
The Final Certificate of the condemnation was filed in the Office of the Hennepin
County Recorder on April 26, 1993 as document number 6117445.
Contamination in General. A portion of the Property was the site of a release of
TCE.
Source of Contamination. The Tank was the source of the release of TCE.
.Water Table 'Contamination. Once the Tank lost its containment ability, the
TCE leaked fi.om the Tank and initially migrated vertically downward through
sandy soils until it reached a clay layer approximately 15 feet below grade where
concentrated TCE has collected in discrete areas. This clay layer, approximately
30 feet thick, also forms a barrier for the downward movement of water fi.om the
surface, and thereby creates a "perched" water table under the Property. The
TCE, being in contact with the water table, has contaminated the water table
aquifer in a localized area.
.1.984 Stipulation. In 1984 EI entered into a Stipulation Agreement with the
MPCA, which required El to properly investigate and remediate the identified
release. EI owned Parcel 7 at the time that it entered into the 1984 Stipulation
Agreement.
Investieation and Clean Up Generally. The contamination of the water table
has been the historical focus of EI's investigation and cleanup efforts. These
efforts to date have consisted of several rounds of investigation and the
Page 4 of 4
He
Lo
installation of monitoring wells, a soil vapor extraction system, an air sparge
system, and a groundwater extraction and treatment system, including the
following:
The groundwater extraction system was installed in 1987.
The soil vapor extraction system was installed in 1992.
The air sparge system was installed in 1994.
These efforts produced the following information:
e
Observed TCE levels have ranged from 5 ppm to 290,000 ppm.
Monitoring wells downgradient show ranges of near zero to 41 ppm.
An estimated total of 7,000 pounds of TCE has been removed to date
through the combination of these remediation systems.
Lower Aquifer Investigation. In 1998, the MPCA required that the aquifer
beneath the clay layer be investigated. Subsurface drilling and sampling of this
aquifer was performed in 1998. Lower aquifer monitoring wells were also
installed in 1998. Initial results from this sampling showed TCE concentrations
up to 124,000 ug/l. This data suggested that the TCE accumulating on the top of
the clay layer had migrated through the clay layer into the lower aquifer.
Amounts of Contaminates Present. TCE, tetraehloroethylene (PCE),
dichloroethylene (DCE), trans-DCE, cis-DCE, vinyl chloride, toluene, and
methylene chloride are all historically documented to be present on the Property,
in the amounts shown on the Exhibit 3 tables.
Location of Contaminates Present. Residual contamination, primarily TCE
exist in subsurface soil as well as groundwater in both the "perched" water table
aquifer and the lower aquifer.
Reports. Many investigative reports have been completed since 1983, the results
of which are summarized in the Resource Conservation and Recovery Act Facili.ty
Investigation and Corrective Measures Study (February 2001 and revised January,
2002), Results from May 2001 Push Probe Investigation of the Clay (June 2001 ),
Remediation ,'~lternatives Report (August 2001), and the Correc'tive Measures
Implementation Work Plan (October, 2001) prepared by Frontline Environmental,
LLC, an environmental consulting firm currently located at 17450 Juneberry
Court, l. akeville, Minnesota, 55044. The location of near surface contaminants at
the Property is shown in Figure 1 of the Corrective Measures Implementation
Work Plan.
City's Aereement with the MPC.a. The Economic Development Authority of
the City of New Hope has agreed with the MPCA to place the following
restrictive Covenants on the Property.
Page 5 of 5
COVENANTS
NOW, THEREFORE, the Economic Development Authority of the City of New Hope
makes the following Covenants as to the limitations, restrictions and uses to which the
Property may be put. The Covenants shall run with the Property as provided by law and
shall be binding on all Interested Parties. The Property shall not be held. transferred.
sold, conveyed, occupied, altered, or used in violation ofihe Covenants.
Use Restrictions for the Entire ProperS'. The Economic Development
Authority of the City of New Hope hereby imposes the following Covenants on
the Property:
ae
The Property may not be used for residential purposes of any kind or for
any use that may result in significant human contact with the soil or
ground water at the Property. "Residential purposes" shall be broadly
defined, but at the least shall include those residential uses defined in th~
City of New Hope Zoning Code.
All structures erected shall be constructed above grade (e.g., no
basements, subgrade parking garages, etc.).
Prior to the commencement of any subgrade construction activities or
other disturbances that may require dewatering (e.g. construction
dewatering, etc.), a ground water contamination monitoring plan must be
prepared and submitted to and approved by the MPCA and the City of
New Hope. The ground water contamination monitoring plan must
describe:
i. The methods to be used and actions to taken to monitor the
disturbance and/or removal of contaminated ground water.
ii.
Plans for proper containment and disposal of any contaminated
ground water removed as part of the construction activities.
de
Any permanent structures erected at the Property that will be occupied by
workers of any kind must have a subsurface vapor collection system
designed and installed beneath the structure to collect potential organic
vapors and prevent such vapors fi.om accumulating in the structure. The
vapor collection systems must be "active" vapor collection systems (i.e.
electrical fans will continuously draw air fi.om the collection system and
discharge the air through roof vents). A vapor collection system
implementation work plan shall be reviewed and approved by the MPCA
prior to installation of the system. The work plan shall include a detailed
system design, and a Monitoring and Maintenance plan for the system.
Page 6 of 6
ee
Permanent facilities (e.g. buildings, parking surfaces, etc.) shall be
designed to minimize infiltration of precipitation runoff (rainwater, snoxv
melt) by routing all such precipitation runoff to storm sewers that carrx~ the
runoff off-site. This shall be done to minimize recharge of subsurface
ground water so as to prevent mobilization of existing subsurface
contaminants.
New monitoring wells installed in areas of vehicle or pedestrian traffic
shall be constructed as flush-mount monitonng wells.
Use Restrictions for the Restricted Area. In addition to the Covenants
restricting the use of the entire Property, the Economic Development Authority of
the City of New Hope hereby imposes the following Covenant on the RestriCted
Area:
ae
Prior to the commencement of any subgrade construction activities or
other disturbances to subsurface soil in the Restricted Area (e.g. utility
installation, excavation, grading cuts, soil corrections, borings, drilling,
etc.), a soil contamination monitoring plan must be prepared and
submitted to and approved by MPCA and the City of New Hope. The soil
contamination monitoring plan must describe:
The methods to be used and actions to taken to monitor the
disturbance and/or removal of contaminated soil.
ii.
Plans for proper containment and disposal of any contaminated soil
removed as part of the construction activities.
Iii.
Schedule for submitting a final report to the MPCA describing
volume of soil removed, how it was disposed, and associated
analytical data.
Commissioner Approval Any action prohibited by the Covenants shall not
occur without the prior approval of the Commissioner.
de
Requests for the Commissioner's approval must be made in writing to the
Commissioner.
The Commissioner shall have 60 days after the receipt of a request to mail
a response thereto.
The Commissioner's response shall be in writing and shall approve or
disapprove the request or require additional information be provided.
A lack of response from the Commissioner shall not constitute approval
by default or authorization to proceed with the requested activity.
Page 7 of 7
Se
ee
The Commissioner's approval max' include conditions that the
Commissioner deems reasonable and necessary to protect public health or
the environment.
L The Commissioner's approval shall not be unreasonablv withheld.
Covenants Limited. The Covenants do not apply to the following activities so
long as such activities occur outside of the Restricted Area and are not reasonably
likely to result in disturbances of or intrusions into the soil, Hound waters an~
surface waters of the Restricted Area:
a. Maintenance or repair of existing buildings or structures;
be
Maintenance or repair of existing underground sewer, water, electrical or
telephone services; or
c. Installation of fencing or signage.
Maintenance Requiremen~_~. Generally, steps taken to minimize the infiltration
of water runoff and monitor treatment of on-site contaminants must be
maintained. Specifically, the following is required:
Once placed, parking construction materials (e.g. bituminous, concrete,
etc.) must be maintained to minimize openings in the surface that would
allow precipitation to infiltrate into subsurface soils.
On-site snow storage shall be permitted only on surfaces that convey
runoffto storm sewers that discharge to an off-site location.
Upon reasonable notice to the then-current Owner and at reasonable times,
fi.om time to time permission to enter upon the Property shall be granted to
the MPCA, the City of New Hope, EI, and/or their subcontractors,
employees or agents for the purposes of sampling, inspection,
construction, or decommissioning of MPCA required monitoring or
treatment facilities.
Subsurface soil ventilation systems must be monitored and maintained in
working order at all times, in accordance with an MPCA approved
Monitoring and Maintenance Plan. Should programmatic vapor testing
show that vapors are not being collected by the soil vapor collection
system, and that the potential for organic vapors to collect in on-site
buildings is not a human health concern, the Owner may request fi.om
MPCA that the active vapor collection system use be discontinued.
Page 8 of 8
e
11.
9e
10.
Reservation. Nothing contained in this Declaration shall in any way prohibit,
restrict, or limit the City of' New Hope, its successors or assigns, from fully
conveying~ transferring, occupying, or using the Property for all purposes nol
inconsistent with the Covenants.
Duration of Declaration. This Declaration and the Covenants herein shall
continue in perpetuity until terminated, modified, released and/or amended with
the written consent o£ the Commissioner, such consent not to be unreasonably
withheld.
Amendment of Declaration by Owners. This Declaration and the Covenants
herein shall only be modified, altered, supplemented or amended with the written
consent of the Commissioner, such consent not to be unreasonably withheld.
Amendment of Declaration bv MPCA. This Declaration and the Covenants
herein may be modified, altered, supplemented or amended by the MPCA upon
the occurrence of the following:
The MPCA finds that this Declaration is inadequate to protect the public
health or welfare, or the environment;
The MPCA gives notice (written or oral) of such finding to the then
current Owner; and
Ce
The MPCA and the Owner enter into a document so modifying, altering,
supplementing or amending this Declaration.
Termination of Declaration. This Declaration and the Covenants herein may be
terminated upon the occurrence and satisfaction of all of the following conditions:
ae
Soil and ground water sampling is conducted on the Property with prior
written notice to and in accordance with a plan approved by the MPCA,
such approval not to be unreasonably withheld; and
be
Based on such samples, the MPCA certifies that the soil and ground water
located within the Restricted Area no longer poses an unacceptable risk to
public health and the environment.
Recordine of Owner Terminations and Amendments. In the event this
Declaration is terminated, modified, altered, supplemented or amended by the
Owner, the Owner shall submit an original document already signed by Owner to
the MPCA with a self addressed return envelope.
The MPCA shall have 60 days after the receipt of such document and
envelope to execute and mail the original document back to the Owner.
Page 9 of 9
12.
13.
be
Upon receipt of the executed original, the Owner shall be entitled to
record the same.
MPCA's Right of Entry. The Economic Development Authority of the Citv of
New Hope grants and conveys to the MPCA such rights and interest in the
Property necessary and convenient to enforce the Covenants. including the right.
upon reasonable notice to the then current Owner and at reasonable times, to enter
from time to time upon the Property to inspect and verify compliance with the
Covenants.
Emerl~enev Procedures. The Economic Development Authority of the City of'
New Hope covenants that the procedures set forth below shall bl followed ~hen
an emergency requires immediate excavation of contaminated soil to repair utility
lines or other infi'astructure on the Property, or to respond to other types o'f
emergencies (e.g., fires, floods) that may result in an unacceptable risk of harm
from exposure:
ae
bo
de
The Owner shall notify the MPCA within 24 hours of obtaining
knowledge of such emergency conditions.
eo
The Owner shall limit disturbance of contaminated soil and water to the
minimum reasonably necessary to adequately respond to the emergency.
The Owner shall undertake precautions to minimize the exposure of
workers and neighbors to contaminated soil and water (e.g., provide
appropriate types of protective clothing for workers conducting the
excavation, and establish procedures for minimizing the dispersal of
contaminated soil and/or contact with'contaminated ground water).
The Owner shall insure that all contaminated soil removed during the
emergency is properly disposed.
Restoration Pian~
ii.
i!1.
iv.
The Owner shall prepare a plan to restore the Property (hereinafter
"Restoration Plan") to a level of acceptable risk.
A copy of the Restoration Plan shall be submitted to the MPCA for
approval prior to implementation of the plan.
The Owner shall implement the MPCA approved Restoration Plan.
The Owner shall submit a "Completion Report" to the MPCA after
the plan is implemented. The Completion Report must provide
sufficient information so as to allow the MPCA to determine
whether a level of acceptable risk has been restored.
Page 10 of 10
14.
Disclosures. The Covenants shall be incorporated in full or by reference into all
instruments conveying an interest in and/or fight to use the Property (e.g.
easements, mortgages, leases).
GENERAL PROVISIONS
Duration. This Declaration shall run with the land in perpetuity and shall inure
to the benefit of and be enforceable by each Owner and the MPCA.
Amendments. This Declaration may be amended by the unanimous a~eement of
all Owners and the MPCA. Amendments shall not be effective until recorded.
Enforcement. Enforcement of these Covenants shall be by any proceeding at lag'
or in equity against any person(s) or entity(ies) violating or attempting to violate
any of the Covenants. Such proceedings may seek to enforce compliance, to
restrain violations or to recover damages. The Covenants may be enforced by the
MPCA, the City of New Hope or any other Interested Parties.
Waiver. Failure to enforce any Covenant shall not be deemed a waiver of thc
fight to do so thereafter.
Severability. Invalidation of any one Covenant by judgment or court order shall
in no way affect any other provisions, which shall remain in full force and effect.
Whenever possible, each provision of this Declaration will be interpreted in such
a manner as to be effective and valid under applicable law, but if any provision of
this Declaration is held to be invalid, illegal or unenforceable under any
applicable law or rule in any jurisdiction, such provision will be ineffective only
to the extent of such invalidity, illegality, unenforceability in such jurisdiction,
without invalidating the remainder of this Declaration in such jurisdiction, and
without effecting the enforceability of any such provision hereof in any other
jurisdiction. Furthermore, in lieu of such illegal, invalid or unenforceable
provision, there will be added automatically as a part of this Declaration a
provision as similar in terms to such illegal, invalid, or unenforceable provision as
may be possible and be legal, valid and enforceable.
Mechanic's Lien. Each Owner agrees to indemni~ and hold harmless all other
Owners from all Mechanic's Liens arising from work for which the Owner is
responsible.
~ The Economic Development Authority of the City of New Hope
may assign any and all of its fights, powers, obligations and privileges hereunder
to any other corporation, association, person or entity. Such assignment or
assignments are effective upon the recording of the instrument making the
assignment.
Page 11 ofll
Attorneys' Fees. In the event an3' part3' seeking enforcement of this Declaration
shall be upheld by the courts, then the defendant or defendants in such case shall
liable for the reasonable attomevs' fees sustained bx' the plaintifI: together with
court costs of such action, and the same shall, to the extent permitted bx'
constitute a lien upon the property of the defendant.
Gender/Piuralil'v. Whenever the singular is used. it shall include the plural, and
visa versa. The use of any gender shall be applicable to all genders.
IN WITNESS WHEREOF, the Economic Development Authority of the City of
New Hope hereto has executed this Declaration on the day and year indicated above.
THE ECONOMIC DEVELOPMENT
AUTHORITY OF THE
CITY OF NEW HOPE
By:
W. Peter Enck
Its: President
By:
Daniel J. Donahue
Its: Executive Director
STATE OF MINNESOTA )
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
,2003, by W. Peter Enck and Daniel J. Donahue, the ~resident and
Executive Director, respectively, of the Economic Development Authority of the City of
New Hope, a Minnesota municipal corporation, on behalf of said Economic Development
Authority.
{Notary Public Se, al)
Notary Public
Page 12 of 12
CITY OF NEW HOPE
By:
W. Peter Enck
Its: Mayor
By:
Daniel .1. Donahue
Its: City Manager
STATE OF MINNESOTA )
) .SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this da3' of
,2003, by W. Peter Enck and Daniel J. Donahue, the Mayor and City
Manager, respectively, of the City of New Hope, a Minnesota municipal corporation, on
behalf of said municipal corporation.
(Notary Public Seal)
Notary Public
Page 13 of 13
Accepted on behalf of
Minnesota Pollution Control Agency
Pursuant to Minn. Stat. ,~ 115B. 1 - subd. 15
James L. Warner
Director. Majors and
Remediation Division
State of Minnesota )
)ss.
County of Ramsey )
The foregoing instrument was acknowledged before me this __da3' of
, 20__, by James L. Warner, Director of the Majors and Remediation
Division of the Minnesota Pollution Control Agency, a Minnesota body politic, on behalf
of the State of Minnesota.
(Notary Public Seal)
Notary Public
Drafted By:
JENSEN & SONDRALL, P.A.
8525 Edmbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424-8811
Page 14 of 14
Project Site (to scalel
7500, 7516, & 7528 42"~' Avenue
EXHIBIT 1
1" ~ 200'
ROCKFORD
EXHIBIT 2
The Restrmted Area is made up of the following two parcels:
Parcel 1: The South 250 feet of the following described tract:
That part of Lot 5, "Auditor's Subdivision Number 324. Hennepin Count,,.
Minnesota" described as follows: Commencing at the point of intersection of the
North line of Rockford Road and the East line of said Lot 5; thence North alone
said East line a distance of 350 feet; thence West parallel with the North line df
Rockford Road a distance of 100 feet; thence South a distance of 350 feet to a
point on the North line of Rockford Road which is distant 100 feet West of the
point of beginning; thence East along said North line a distance of 100 feet to thc
point of beginning.
Parcel 2: The East 80 feet of the following described tract:
The West 95 feet of the East 195 feet of the South 350 feet of Lot 5, Auditor's
Subdivision No. 324, Hennepin County, Minnesota.
P ~Auomey\DJD'2 Cily of New Hope~¢9 11257 - Declaralmn of Covenams - Commercmr'O0 11257-O02-Decia~-almn of( ovenants Ex 3 doc
1/8 Section Map
Project Site (to scale)
7500, 7516, & 7528 42"¢.Avenue
200"
i'F PROJ 1606
o?
7528 : 7516
,' 7500
EXHIBIT 3
General Total volume of / Total volume of i Remedy ! RAP Cleanup Goal
t {i.e.. residential
contaminant type identified identified
(i.e., DRO, VOCs, contaminated soil contaminated soil i SRVs. industrial
· t SRVs. etc.)
metals, etc.) (cvds) to be remediated
(ryds)
VOCs la,OOOI o IN/^
General contaminant
type (i.e., DRO,
VOCs, metals, etc.
VOCs
VOCs
Compound
TCE
Affected aquifer
(i.e., water table,
deeper aquifers)
Water table aquifer
Lower aquifer
DCE
PCE
Toluene
Tier I
Approximate dimensions
of contaminant plume
on-site. Specify if the
plume extends off-site.
3,200 sq. ft.
Plume extends off-site
48,000 sq. ft.
Plume extends off-site
Average Concentration
SRV (residential)
450 mg&g
30 ug/L
6 ug/L
7 ug/L
1 O0 ug/L
70 ug/L
0.2 ug/L
50 ug/L
1000 ug/L
l. Remedy
Potassium permaneanate
injection and ex-situ soil
vapor and groundwater
eatment
otassium permanganate
I injection and ex-s~tu sol}
I vapor and groundwater
treatment
Maximum Concentration
Compound
TCE
DCE
PCE
Trans-DCE
Cis-DCE
Vinyl chloride
Methylene Chloride
Toluene
1,900 mg/kg
5 mg/kg
80 mg/kg
0.5 rog/kg
Average
Concentration
5,000 ug/L
1 ug/L
<1 ug/L
<1 ug/L
<1 ug/L
<1 ug/L
<2 ug/L
<1 ug/L
P:~Attomcy~JD~. ~ oflqew I"klW~. 11256.1~ of Co~aamt~. I l~q6-OOl.i~ ot~D~,).doc
Maximum
Concentration
33 ug/L
5 ug/L
18 ug/L
640 ug/L
900 ug/L ~
18 ug/L ~-~
DOUGLAS J. DEBNER:
GORDON L. JENSENI
GLEN A. NORTON
STEVEN A. SONDRALL
STACY A. WOODS
OF COUNSEL
LORENS Q. BRYNESTAD
~Real Property Law
Specialist Certified By
The Minnesota State
Bar Association
:Admitted in Iowa
JENSEN & SONDRALL, P.A.
/ittorneys ~It Law
8525 EDINBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1968
TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193
e-mail iaw@jensen-sondrall.com
November 4, 2003
Ken Doresky
Community Development Specialist
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
VIA E-MAIL ONLY TO
kdoresk~cLnew-hope, mn. us
Re: 7500 - 7528 42nd Avenue North
Our File No.: 99.11288
Dear Ken:
Please find attached a proposed Resolution Calling for Public Hearing to Approve Sale of City
Property at 7500 - 7528 42~a Avenue North to JCS Development, Inc. and Frey Development, Inc.
As you know, this is the property that was polluted by Electronic Industries, Inc. The City
purchased the property owned by Electronic Industries, Inc. and the two adjacent parcels and has
worked with the Minnesota Pollution Control Agency to rehabilitate this site. The City has now
identified two purchasers who can make use of this property in a manner agreeable to its
contaminated nature. More specifically, the business condominiums and the Culvers restaurant
expected to go on this site will essentially completely cover the site with impermeable material
such as pavement. Furthermore, the construction on the site will only require minimal excavation
for the installation of foundation footings and utilities.
Based on the foregoing, I have prepared the attached resolution for use by the President and
Commissioners of the Economic Development Authority, should they choose to proceed with the
sale of this land to the respective purchasers. Please contact me with any questions or comments.
Otherwise, I thank you for your attention to this matter.
Very truly yours,
Douglas J. Debner, Asst. City Attorney
City of New Hope
JENSEN & SONDRALL, P.A.
djd~jensen-sondrall.com
After Hours Extension #137
November 4, 2003
Page 2
Attachments:
1. Proposed Resolution Calling for Public Hearing to Approve Sale of City Property at 7500 - 7528 42na Avenue
North to JCS Development, Inc. and Frey Development, Inc.
2. JCS Purchase Agreement
3. Frey Purchase Agreement
CC:
Steven A. Sondrall, New Hope City Attorney (via E-mail - w/attachments)
Kirk McDonald, Community Development Director (via E-mail - w/attachments)
Valerie Leone, City Clerk (via e-mail - w/attachments)
P:~Attomey\DJDL2 City of New Hope\99.11288 - Sale of El Site\99-11288-015-Doresky Ltr. doc
DOUGLAS $. DEBNER2
GORDON L. JENSEN~
GLEN A. NORTON
STEVEN A. SONDRALL
STACY A. WOODS
OF COUNSEL
LORENS Q. BRYNESTAD
~R. ea! Property Law
Special/st Certified By
The M/m~som
Bar Azsocia,;on
~Adm/t~ed/n Iowa
JENSEN & SONDRALL, P.A.
Attorneys/it Law
8525 EDINBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1968
TELEPHONE (763) 424-8811 * TELEEAX (763) 493-5193
e-mail law~jensen-sondrall.com
November 3, 2003
VIA E-MAIL ON£ Y TO RSDSU$(~/IOL. COM
Dexter J. Marston
#4001
Retail Site Development Services
5775 Wayzata Blvd. Suite 700
Minneapolis, MN 55416
Re: 7500 - 7528 42"d Avenue North, New Hope, Minnesota
Our File No.: 99.11288
Dear Mr. Marston:
Please forgive me for including what may seem like excessive information in this letter. However,
when I started work on this matter again, I found it helpful to create a time line of past events. I
also thought it would be helpful to provide that time line to you for the sake of good
communication. My file indicates that after the City received the initial drafts of proposed
Purchase Agreements from you the following occurred:
The first set of revisions to the Purchase Agreements is sent to you via e-mail.
In the rush to get the lb-st set of revisions to you, some errors were made, so a corrected lb'st set of
revisions to the Purchase Agreements is sent to you via e-mail.
"Pre-Application" meeting is held at City Hall w/th you and your clients. At this meeting major
changes to the Purchase Agreements are discussed.
The second set of revisions to the Purchase Agreements is sent to you via e-mail.
A meeting is held at City Hall with the surveyor, City staff, you and your clients and us to discuss
the platting of the property. It is my recollection that the Purchase Agreements were only br/efly
discussed at th/s time because Bernie wasn't certain he and his partner would be going forward
with the purchase, but also because only small changes were needed at this point.
September 2~ 2003~ 8:30 a.m,:
A meeting is held at City Hall with City staff, the partners of Frey Development and City Attorney,
Steven Sondrall. The purpose of this meeting is to address Frey Development's concerns about the
contain/nation present on the property.
November 3, 2003
Page 2
September 2~ 2003~ at approximately 1 p.m.:
I e-mailed what are expected to be the/'mai Purchase Agreements to you and Ken Doresky. The only exception being that
the limited assignment provision to be included in the JCS Development, Inc. Purchase Agreement needed to be
completed with the name of the entity JCS wishes to assign the Purchase Agreement to.
I have added date and time fields to the footer of the attached proposed final Purchase Agreements to help us all verify
that we are looking at the most recent versions. I have also now completed the JCS Purchase Agreement's assignment
provision.
In addition to the Purchase Agreements, I have also attached the proposed final Declaration of Covenants that is to be
attached to each Purchase Agreement as Exhibit C. This is, of course, the version of the Declaration of Covenants
approved by the Minnesota Pollution Control Agency. There is one exception, however. The MPCA insisted that
Exhibit 1 and Exhibit 2 &the Declaration of Covenants be replaced w/th "to scale" exhibits. There is no legal reason for
this to be done, but the MPCA wanted it and Ken has "to scale" documents so we agreed. We will be able to attached "to
scale" documents to the original prior to recording. There is, however, no reason why we cannot use the attached
Declarahon of Covenants for the Purchase Agreements and I suggest we do so as this change is unimportant and not
worth spending more time on than has already been spent.
The Declaration of Covenants has been in its final approved form since August 28, 2003, but the City has not previously
submitted it to the City CounciVEDA. The Declaration of Covenants were not previously submitted it to the City
CounciVEDA because City staff wanted to bring it simultaneously with the Purchase Agreements. Again, I have added
date and time fields to the footer of this document to help us all verify that we are looking at the most recent version.
The time line going forward is, I believe as follows:
October 31~ 2003:
I am to submit to the City a resolution to be passed by the EDA setting the public hearing for the property.
November 4~ 2003:
You indicated to me that you thought you would be able to have the Purchase Agreements, signed by your clients and
delivered to the City by this date.
November 10t 2003~ 7:00 p.m. at City gl'ali:
The City CounciVEDA meets. The EDA is expected to pass the resolution fixing a November 24, 2003, public hearing on
the sale of this property.
November 24~ 2003~ 7:00 p.m. at City
The City CounciVEDA meets. The EDA will hold a public heahng on the sale of this property. If no objections are raised
thereto the EDA w/Il pass a resolution approving the sale. The Declaration of Covenants are also expected be approved at
this meeting.
November 25~ 2003:
If not signed the night before, the Declaration of Covenants and Purchase Agreements will be signed by the City. Our
office will then record the Declaration of Covenants against the property.
November 3, 2003
Page 3
Please contact me with any questions or comments. Otherwise, I thank you for your attention to this matter.
Very truly yours,
Douglas J. Debner, Asst. City Attorney
City of New Hope
JENSEN & SONDRALL, P.A.
djd~jensen-sondrall.¢om
Alter Hours Extension #137
Attachments
CC.*
Kirk McDonald, Community Development Director, City of New Hope [via e-mad w/attachments-]
Ken Doresky, Community Development Specialist, City of New Hope [via e-mad w/attachmentsJ
Guy Johnson, Public Works Director, City of New Hope [via e-mad w attachmentsJ
Steven A. Sondrall, City Attorney, City of New Hope [via e-mad w attachmentsJ
Vince Vander Top, City Engineer, City of New Hope [via e-mad w/attachments-]
Douglas J. Bergstrom, Environmental Consultant, City of New Hope [via e-mad w/attachments.]
P:~itomelADJD~2. C/ty of New Hopek09.11288 - Snle of El S/tekOg. 11288-010-/vla~on Ltr. do~
7810' .
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Ui
Engineers & Architects
Bonestroo, Rosene, Anderlik and Associates, Inc. is an Affirmative Action/Equal
Opportunity Employer and Employee Owned
Principals: Otto G. Bonestroo, P.E Marvin L. Sorvala, P.E. Glenn R. Cook, P.E Robert G.
Schunicht, P.E. Jerry A. Bourdon, P.E. Mark A. Hanson, PE
Senior Consultants: Robert W Rosene, P.E. Joseph C Anderlik, P.E Richard E. Turner,
P.E Susan M. Eberlin, CPA.
Associate Principals: Keith A. Gordon, P.E Robert R. Pfefferle, P.E Richard W. Foster,
P.E David O. Loskota, P.E Michael T. Rautmann, P.E Ted K. Field, P.E Kenneth P
Anderson, P.E Mark R. Rolfs. PE David A. Bonestroo, MBA Sidney P Williamson, P.E.,
L.S Agnes M. Ring, M.0 A Allan Rick Schmidt, P.E Thomas W Peterson, P.E James R
Maland, P.E. Miles B. Jansen, P.E. L. Phillip Gravel IlL P.E Daniel J. Edgerton, P.E
Ismael Martinez, P.E. Thomas A. Syfko, P.E. Sheldon J. Johnson Dale A Grove, P.E
Thomas A. Roushar, P.E. Robert J. Devery, P.E
Offices: St. Paul, St. Cloud, Rochester and Willmar, MN Milwaukee, WI Chicago, IL
Website: www.bonestroo.com
TO:
FROM:
CC:
DATE:
SUBJECT:
Ken Doresky
Vince Vander Top
Kirk McDonald, Mark Hanson, Guy Johnson
April 28, 2003
7500-28 42nd Avenue Water Quality Requirements
Our File No. 34-Gen E03-04
This memo outlines a recommended fee for regional water quality improvements for this site.
This property will contribute a cash fee toward regional improvements because a water quality
pond cannot be constructed on site for environmental reasons. This recommendation is
consistent with the Surface Water Management Plan and with past conversations with
prospective property developers. The total fee will represent the cost that would have been
realized to construct a pond and the value of the land occupied by the pond.
Site considerations/Pond Characteristics
· The site area is slightly less than 110,000 SF.
· A water quality pond for this site would include 16,000 cubic feet of wet volume.
· If the pond were 5 feet deep on average and proper sideslopes and benches were
included around the pond, 4,900 SF (70' x 70') would be required for the pond.
Pond Construction Costs
Common Excavation
Outlet Structure,
Rip Rap, & Pipe
Restoration, Landscaping
Construction Cost Total
Indirect Costs (25%)
Land Value
Total Contribution
1,500 CYs ~ $10/CY
Lump Sum
$15,000
$5,000
Lump Sum $2,000
4,900 SF ~ $4.00/SF
$22,000
$5,50O
$19,600
$47,100
2335 West Highway 36 · St. Paul, MN 55113 · 651-636.4600 · Fax: 651-636-1311
The value of this contribution can be adjusted based on the agreed value of the land. $4.00/SF
was used based on past discussions.
A typical rate of 25% was used for indirect costs. These costs include legal, engineering, and
administrative costs for easements, design, and other project management activities.
2335 West Highway 36 · St. Paul, MN 55113 · 65~-636-4600 · Fax: 65~-636-~3~
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
EDA Minutes
Regular Meeting
June 23, 2003
City Hall
CALL TO ORDER
ROLL CALL
APPROV~ MINUTES
IMP. PROJECT 665
Item 4
President Enck called the meeting of the Economic Development Authority to order
at 9:06 p.m.
Present:
W. Peter Enck, President
Sharon Cassen, Co,an~issioner
Don Collier, COulnfi.qsioner
Mary Gwin-Lenth, Comafissioner
Steve Sommer, Coic.,fissioner
Motion was made by Commissioner Collier, seconded by Commissioner Sommer,
to approve the Regular Meeting Minutes of May 27, 2003. All present voted in
favor. Motion earned.
President Enck introduced for discussion Item 4, Joint Development Proposal
Concept Consideration and Authorization to Prepare a Purchase Agreement for
City-Owned Property at 7500-7528 42"a Avenue North (Improvement Project No.
665).
Mr. K/rk McDonald, Director of Community Development, stated staff is
requesting concept consideration and authorization to prepare a purchase agreement
with the developers for a joint development proposal for the city-owned site at
7500-7528 42"a Avenue North. The proposal is for two uses: a Culvers restaurant on
the western portion of the site and three office condomimum buildings (eight
separate ownership units) on the eastern portion of the site.
Mr. McDonald updated the EDA on the proposal. The developers are offering a
combined price of $510,000 for the site, or $4.62 per square foot. The developer's
representative, RSDS, initially proposed a brokerage fee of $40,000 to be paid by
the city. At the FDA's request, the brokerage fee has been eliminated from the
proposal. He also reported that storm water ponding issues have been discussed
with the developer. He illustrated the revised site plan.
Commi.~sioner Sommer initiated discussion regarding the difference between the
appraised price and the proposed purchase price. Mr. Ken Doresky, Conhq,anity
Development Specialist, commented that the appraisal did not take into
consideration the property's limitations as mandated by the MPCA.
President Enck objected to the city bearing the costs for monitoring and mitigation
plans related to the eontamlnated soil cleanup. He noted Electronic Industries
should be obligated to pay as they eansed the contamination.
Mr. Dan Donahue, City Manager, explained that staffwould clarify this issue.
Mr. John Seiben, JCS Development, was recognized. He noted it would likely take
four months to close on the property and three months to complete constxucfion.
Mr. McDonald reco ...... ended that a shared parking arrangement be explored at the
site between JCS Development and the Sunshine Factory Restaurant.
EDA Minutes
Page 1
June 23, 2003
IMP. PROJECT 749
Item 5
/MP. PROJECT 734
Item 6
BROOKSTONE, INC.
Item 7
EDA Minutes
Page 2
The EDA expressed support for the joint development proposal, and directed staff
to pursue a purchase agreement.
Enck introduced for discussion Item 5, Discussion Regarding
evelopment Proposal for City-Owned Property at 5501 Boone Avenue and
Proceed (Improvement Project No. 749).
Boone
building
He
utilizes
extra
units in the
McDonald, Director of Community Development,
EDA discussion and direction to proceed regarding a
fxom Project for Pride in Living (PPL), for the
North. The proposal is for the consmaction of a
between owner-occupied condominiums and
support for the proposal based on the following ~
site, meets the CDBG elig~"oility
~arking for North Ridge Care Center,
which will be lost due to redevelopment
the prope~y, less soil correction costs.
staff is
site at 5501
residential
rental units.
the proposal
provides potential
some existing rental
and pays the city
The EDA
units, and
units
concern with combining
whether PPL would provide
occupied.
units with rental
that at least 50% of the
Mr. Chris Wilson
traits would be
He noted PPL is
and
a marketing
units.
reco~ized. He stated 50% of the
separate homeowners association.
to determine the market for the
The EDA held a bfiefl
of installing pilings and
the soils. Mr. Wilson noted his intention
The EDA expressed support
and directed staff to continue
the property.
ect at 5501 Boone Avenue North,
regarding the potential redevelopment of
President Enck introduced
Development Proposal for
Private Property at 4301
Avenue
Mr. Kirk McDonald, of
discussion and regarding a
Civil & for the
North and the property at 4301
Item 6, Discussion Regarding
at 4317 Nevada Avenue North and
ect No. 734).
Development, requested EDA
proposal submitted by Master
site at 4317 Nevada Avenue
Avenue North. The development
proposal is for replacement of two :ingle-family homes with twelve
units of towahomes. The developer ~lso desirous of acquiring 4415
Nevada North (the property to the nort~ for the construction of six
addition,'
Following ;ion, the EDA declined pursuing the ~oposal due to the city
assistancg~ ed and the proposed density. The EDA'~i0dicated support for a
lower~/~, ect at the location without city financial assi~ce.
Presi~/ent Enck introduced for discussion Item 7, Motion AclmowXl~dging Expiration
of ~Uer of Intent with Brookstone, Inc. and Agreement to ContinUe Coordination
o~/Informal Basis for the redevelopment of the city center area.
of Winnetka Center).
June 23, 2003
NOTICE OF PUBLIC HEARING PER MINN. STAT.
§469.029 AUTHORIZING SALE OF PROPERTY
AT 7500-7528 42"'i AVENUE NORTH
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF NEW HOPE
Notice is hereby given that the Economic Development Authority in and for the City of New
Hope, Minnesota, will meet on the 24th day of November, 2003, at 7:00 o'clock p.m. at the City Hall,
4401 Xylon Avenue North, in said City for the purpose of holding a public hearing to consider the sale
of the property described in attached Exhibit A to JCS Development, Inc. and Frey Development, Inc.
The public may see the terms and conditions of the sale at the City Hall and that at said public
hearing, the City Council will decide if the sale is advisable.
All persons interested are invited to appear at said hearing for the purpose of being heard with
respect to the sale of the described property.
Accommodations such as sign language interpreter or large printed materials are available upon
request at least 5 working days in advance. Please contact the City Clerk to make arrangements
(telephone 531-5117, TDD number 531-5109).
Dated the l0th day of November, 2003.
s/Valerie J. Leone
Valerie J. Leone
City Clerk
(Published in the New Hope-Golden Valley Sun-Post on the __ day of November, 2003.)
EXHIBIT A
LEGAL DESCRIPTIONS
"Property" means the real estate situated in the County Hennepin, State of Minnesota, described as
follows (parcel numbering coincides with attached Exhibit B):
Parcel 6.
Parcel
Legal Description. That part of Lot 5, "Auditor's Subdivision Number 324, Hennepin County,
Minnesota" described as follows: Commencing at the point of intersection of the North line of
Rockford Road and the East line of said Lot 5; thence North along said East line a distance of
350 feet; thence West parallel with the North line of Rockford Road a distance of 100 feet;
thence South a distance of 350 feet to a point on the North line of Rockford Road which is
distant 100 feet West of the point of beginning; thence East along said North line a distance of
100 feet to the point of beginning.
Address. 7500 42nd Avenue North, New Hope, MN.
Property Identification Number. 17-118-21-22-006.
Legal Description. The West 95 feet of the East 195 feet of the South 350 feet of Lot 5,
Auditor's Subdivision No. 324, Hennepin County, Minnesota.
Address. 7516 42nd Avenue North, New Hope, MN.
Property Identification Number. 17-118-21-22-0007.
Parcel 8.
Legal Description. That part of Lot 5, "Auditor;s Subdivision Number 324, Hennepin County,
Minnesota" described as follows: Commencing at a point on the North line of Rockford Road
distant 195.0 feet Westerly of the East line of said Lot 5; thence North parallel with the East line
of said Lot 5 a distance of 350.0 feet; thence West parallel with the North line of Rockford Road
a distance of 125.4 feet, more or less, to a point 48.95 feet East of the West line of said Lot 5, as
measured at right angles thereto; thence South parallel with the West line of said Lot 5 a
distance of 350.0 feet to the North line of Rockford Road; thence Easterly along the North line
of Rockford Road a distance of 125.4 feet, more or less to the point of beginning.
Address. 7528 42nd Avenue North, New Hope, MN.
Property Identification Number. 17-118-21-22-0008.P:,^~ORNF,~D,o,.2. C,*~O~NEW.OPE,O9,,2*g-S^L~O~,S,T~N ..... ~g~-o,-P~,.,O
NOTICE SALE OF PROPDOC
EDA
. REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Community Development 11-10-03 EDA
~ Item No.
By: Kirk McDonald By: 5
UPDATE ON POTENTIAL REDEVELOPMENT OF FRANK'S NURSERY SITE AT 5620 WINNETKA AVENUE
NORTH AND MOTION AUTHORIZING TAX INCREMENT FINANCING ANALYSIS (IMPROVEMENT
PROJECT NO. 733)
REQUESTED ACTION
Staff requests to update the EDA on the status of the potential redevelopment of the Frank's Nursery site at
5620 Winnetka Avenue North and requests that the EDA approve a motion authorizing a tax increment
financing analysis of the proposed project by Krass Monroe, the city's redevelopment financial consultant. The
developer has submitted the appropriate fees to the city to cover the cost of the study. Representatives from
Armory Development II LLC may be in attendance at the meeting.
POLICY/PAST PRACTICE
When city staff receives requests for financial assistance from developers, they are submitted to the EDA for
consideration. In the past, the city has assisted a number of developers with projects using a variety of
financing tools.
BACKGROUND
Armory Development II has submitted the attached correspondence to the city confirming that it has executed
a purchase agreement with FBL Real Estate Ventures, Ltd. for the acquisition of the property at 5620
Winnetka Avenue North, commonly referred to as the Frank's Nursery site. The letter further states that they
have executed a Lease Termination and Relocation Agreement with Frank's Nursery & Crafts, Inc. as it relates
to their respective tenancy at this location. The successful closings of the transactions are contingent upon
completion and acceptance of their due diligence.
As the EDA is aware, staff has been coordinating with the developer on the potential redevelopment of this
site for over a year. This matter was last discussed at the September 23, 2002, EDA meting. At that time, the
developer submitted correspondence that included the following points:
· On behalf of Armory Development II, we would like to introduce our team and our proposed project at the
site commonly referred to as Frank's Nursery. We have been working with the current ownership as well
as the city staff since February of 2001. At this time, we would like to provide the City Council more
information on our project, as well as discuss possible support for the project.
MOTION BY //~/'~.//,~ ff~(~~ SECOND BY
/
hRFA\Plannin~l\liv comm.\Q-5620 Wtka site
Request for Action Page 2 11-10-03
Our team is comprised of Armory Development II LLC, Master Development, Tushie Montgomery
Architects, and Anderson Builders. Together our principals have over 100 years of development and
construction experience. Our goal is to successfully complete the Frank's project and develop additional
sites in the city.
The project that Armory Development II has planned is comprised of 56 for-sale townhomes on the site.
We have worked closely with the city staff to review the design, access, and green space of the site and
believe the plan meets all of their concerns.
The units will be two or three stories tall and will range between 1,100 - 1,400 square feet. The sales plan
calls for the units to be marketed between $150,000 - $190,000 depending on final development costs.
The target demographic will be the young professional and first-time homeowner.
Because this is a redevelopment site, there will be additional costs in the demolition of the site, refitting of
the infrastructure to meet the new development, as well as costs associated with watershed issues. We
are requesting that the city include this site in its planned TIF district in order to offset this cost. The city's
financial planner has been provided a preliminary pro-forma to review our budget.
In September 2002, staff stated "Staff started meeting with the developers prior to the time that the
Developers' Roundtable was conducted in June for the Livable Communities Task Force, although the
developers agreed to participate in that process. Their redevelopment proposals for the Frank's site were
reviewed by the Livable Communities Task force and the task force was very supportive of the proposal. Staff
has requested that the financial consultant review this request on a preliminary basis and that analysis shows
that the project could generate enough revenue that the city could provide some assistance for site
development. Staff is requesting EDA approval to move forward in working with the developer and financial
consultant to develop more definitive numbers, discuss the type of assistance and develop potential terms of
agreement. Owner-occupied townhomes are a specific type of housing that are needed in the city, according
to both the Comprehensive Plan and the Life Cycle Housing Study." Per the attached September 2002 EDA
minutes, the EDA was supportive of the project and directed staff to proceed to meet with the developer on
preliminary plans.
Due to the amount of time that has lapsed since this matter was last discussed, staff wanted to update the
EDA and requests that a motion be approved authorizing the financial analysis. The developer has deposited
the appropriate fees with the city to cover the cost of the study. Once the analysis is completed, staff will
present the results to the EDA and developer and make recommendations as to the next steps to be taken.
In other maters related to this site, staff wants to make the EDA aware of the following:
Frank's Nursery is interested in relocating to the vacant Lyndale Garden site and the city has provided a
letter stating that Frank's could utilize the same areas for outside storage that were previously approved
for Lyndale without having to secure additional planning approvals from the city.
Staff has been notified that the pre-development grant submitted to the Metropolitan Council for this
project/site is recommended for partial funding and the intent is that the funds would be utilized by both the
city and developer to help "write down" some of the up front development costs on this project.
Staff is very supportive of this proposal and recommends that the EDA authorize staff to move forward with
this request. Additional site plan and financing issues will be discussed further after the financial analysis is
completed.
Request for Action Page 3 11-10-03
FUNDING
The cost for the financial analysis will be paid by the developer.
ATTACHMENTS
· 11/4/03 Armory Development II Correspondence
· 8/27/02 GSR Correspondence
· Site Maps
· Elevations/Preliminary Site Plan
· 8/19/02 Preliminary Krass Monroe Analysis
· 9/23/02 EDA Minutes
· Excerpts 9/15/03 Predevelopment Grant
· 10/31/03 Grant Recommendation- Met Council
· 11/3/03 Funding Recommendation - Met Council
Armory Development II en,,e
Minneapolis, MN 55404
November 4, 2003
City of New Hope
Kirk McDonald
4401 Xylon Avenue
New Hope, MN 55428
Dear Kirk:
Please let this letter serve as confirmation the we have executed a Purchase Agreement with FBL Real
Estate Ventures, LTD for the acquisition of the property located at 5620 Winnetka Avenue North and
commonly referred to as the "Frank's Nursery" site.
Further, we have executed a Lease Termination and Relocation Agreement with Frank's Nursery &
Crafts, Inc. as it relates to their respective tenancy at this location.
Please understand that the successful closings of these transactions are contingent upon completion
and acceptance of our due diligence.
If you should have any questions, please contact me.
Sincerely,
Doug Hoskin
August 27. 2002
City of New Hope City Council
c/o Kirk McDonald
Community Development Director
City of New Hope
New Hope, MN 55428
To the City Council:
On behalf of Armory Development II LLC, I would like to introduce our team and our
proposed project at the site commonly referred to as Frank's Nursery. We have been
working with the current ownership as well as the city staffsince February of 2001. At
this time we would like to provide the City Council more information on our project
during your September proceedings, as well as discuss possible support for the project.
Our team is comprised of Armory Development LLC, GSR Real Estate Services, Tushie
Montgomery Architects, and Anderson Builders. Together our principals have over one
hundred years of development and construction experience. Our goal is to successfully
complete the Frank's project and develop additional sites in the city.
The project that Armory Development has planned is comprised of' 56 for-sale town
homes on the site (see enclosure). We have worked closely with the city staffto review
the design, access, and green space of the site and believe the plan meets ali of their
concerns.
The units will be two or three stories tall and will range between 1,100 - 1,400 square
feet. The sales plan calls for the units to be marketed between $150,000.00 - $190,000.00
depending on final development costs. The target'demographic will be the young
professional and first time homeowner. '
At this time, Armory Development has come to an agreement on the land purchase price
with the owner, a large insurance company in Iowa. Negotiations are ongoing with
Frank's Nursery on the buy-out of their lease. Based upon successful negotiations, we
hope to break ground on the site in the spring.
Because this is a redevelopment site, there will be additional costs in the demolition of
the site, refitting of the infrastructure to meet the new development, as well as costs
associated with watershed issues. Armory Development expects these additional costs to
be approximately $350,000.00. We are requesting that the city include this site in its
planned TIF District in order to offset this cost. The city's financial planner has been
provided a preliminary pro-forma to review our budget.
615 First Avenue NE · Suite SO0 · Hinneapolis °HN 55413
Phone (612)B8-2828 · Fax (612)B8-5288
www.gsr-re.com
City of New Hope City Council
August 27, 2002
Page 2
Please review the enclosed information and schematic. I look forward to introducing the
project and answering any questions that you might have regarding the team or the
project.
Thank you.
Sincerely, ~
Charlie Nestor
Business Development Manager
CN/sln
Enclosure
REAL ESTATE SERVICES
5436 ,6437
5430 5431
54.26 5427
5420 5421
5416 5417
5531
5519
55O9
5546
7301
55TH AVE N
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PARK
ST RAPHAEL DR.
ST. RAPHAE
CATHOLIC
CHURCH
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SCHOOL ' WINNETKA, ..................
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KRASS MONROE, P.A.
ATTORNEYS AT LAW
James R. C~sserly, Esq.
£tnail jam~'~monroe, ca~m
Yoice Mail (P$2J 885-12Pd
DRAFT
Gr~ D. Jo~flson. CPA
l/ott:~ Mail (952) 885-$994
MEMORANDUM
'From:
Date:
Re:
City of New Hope
At'tn: Kirk McDonald, Comm. Dev. Dir.
James R. Casserly, Esq.
Greg D. Johnson, CPA
August 19, 2002
Frank's Nursery Site
Our File No. 10048-13
INTRODUCTION
Armory Development II (the "Redeveloper") is considering the redevelopment of the
Frank's Nursery site (the "Site"). The redevelopment would include the demolition of the
existing building, relocation of Frank's Nursery, site preparation and storm water
improvements. Upon completion, the Site would include 56 town homes with an
average market value of approximately $160,000."
THE ISSUES
Because of the substantial costs involved Jn the acquisition of the Site and the relocation
of Frank's Nursery, the Redeveloper has asked the EDA to assist it with a portion of
these costs. The issues that need resolution include the following:
1. How would the EDA assist the Redeveloper with defraying these costs;
and
2. What is the amount of assistance necessary to facilitate the
redevelopment.
SUffE 1100 SO[/I'HPOINT OFFICE CENTER. l~d} WE~ lad
TELEPHONE 952JS&5.,,~39.8~;ET ' BLOOMINGTON, MINNESOTA 55431.1447
FACSIMILE 952Ja&5.596g
ANALYSIS
The EDA can provide assistance by establishing a tax increment financing district. The
Site would appear to qualify for inclusion in a redevelopment district. At the present
time, the EDA is reviewing not only the Frank's site but a number of parcels in the
Livable Communities Study area. The EDA has indicated its desire to establish such a
district to include those parcels east of Winnetka. The Site would be part of that
redevelopment tax increment district and thus the EDA would capture tax increment
resulting from the increased market valuation on this Site.
The assistance to the Redeveloper could be in the form of a tax increment revenue note
(the "Note") in which the tax increment from the Site would be pledged to pay the Note
(this process would be almost identical to the process the EDA has employed in
assisting the Navarre expansion).
Attached is a three-page tax increment analysis along with an amortization schedule for
a revenue note. These pages are numbered 1 through 4 in the upper right-hand comer.
As with previous analysis, the assumptions are on page 1 which shows the market value
per unit as $160,000. Page 2 shows the amount of tax increment that would be
generated over the I/re of a redevelopment tax increment district This total amounts to
$2,861,142 as shown in column (e). Page 3 demonstrates the result of pledging t'~ty
percent (50%) of the available tax increment for approximately ten (10) years to pay the
Note. (Please refer to the underlined numbers at 12/01/14). Page 4 which assumes the
amount of assistance to be $300,000 is an amortization schedule for the Note at a
seven percent (7%) interest rate.
The second issue that needs resolution is to determine the level of assistance necessary
to facilitate the redevelopment of the Site. Acquisition of the Site is complicated by a
very favorable lease arrangement that Frank's Nursery, as tenant, has with Farm
Bureau Insurance, the landlord and owner of the Site. The Redeveloper has indicated
that the acquisition, demolition, relocation, site preparation and ut/lity cost will be
approximately $1.1 to $1.3 million and that the project cannot afford costs of that
magnitude. The Redeveloper has asked for assistance of $300,000. Before the EDA
agrees to that level of assistance, we should have an opportunity to review the following:
1. The Purchase Agreement between the Redeveloper and Farm Bureau
Insurance;
A construction pro forrna for the redevelopment project (the information
contained in the Redeveioper's Presentation of July 8, 2002 is not
adequately detailed and the hard cost budgeting provided by Andersen
Builder's appears to be very Preliminary); and
· Page 2
08/19/02 ~ON 15:30 FA~ 952 885 5969 KRA$S ~0~0~ ~0US-
The amount of real estate taxes projected to be paid by the completed
project are considerably less than we are projecting based on the values
that we were given. These differences need to be reconciled.
CONCLUSION
If the EDA wishes to assist this project and the amount of assistance can be properly
quantified, and assuming that the Site will qualify for inclusion in a tax increment
financing redevelopment district, then there is certainly adequate tax increment to
pr°vide the assistance and there are more than adequate costs for which the EDA has
the legal authority to provide such assistance. The assistance can be in the form of a
tax increment revenue note which should not expose the City to any risk. Furthermore,
the revenue note would only be delivered upon the completion of the agreed upon
improvements to the Site.
We look forward to further reviewing this project with you.
JRC/GDJ/trg
Attachments
G:~WPDATAW~IEVV HOPE'~131COR~M~ JRC D'I.DOC
· Page 3
08/19/02
MON 15:30
952 885
5969
Ale, AS S }10h'AOE
CITY OF NEW HOPE
Franks Nursery Site
ASSUMPTIONS
Original Market Values
Area of Parcel
(Acres) (Sq. Feet)
3.19 138,761
1/2/2001 Market Value (Pay 2002)
Lancl Building Total
Franks Nursery & Crafts
Totals
05-118-21-32-0007
3.1~ 138,761
$ 578,000 $ 96,000 $ 674,000
$ 57S,000 $ 96.000 $ 674.000
'"~-- 4.17 per scl. I't. /or Lan0
Original Tax Capacity
Commercial /Reta#
Rental. Moderate
Rental
Owner Occul=ted
Phase 1
Estimated Market Value
Estimated Tax Capacity
Estimated Taxes
Estimated Tax Increment
674,000
674.000
Class
2.00%
1.25%
1.25%
1.00%
· Final rates for Pay 2004
28 Townhomes @ 160,000 per unit =
28 Townhomes ~ 2.268 per unit =
28 Townl~omes ~ 1,919 per unit =
$4,480,000
44,800
63,515
53,730
6,740
0
0
6.740
84.6% of total taxe~
Phase 2 (combined)
Estimated Market Value
Estimated Tax Capacity
Estimated Taxes
Estimated Tax Increment
56 Townhornes @ 160,000 per unit = 8,960,0D0
89,600
56 Townhomes ~ 2,268 per unit = 127,030
56 Townhomes ~ 2,089 per unil = 116,975
92.1% of total taxes
Phase 3 (combined)
Estimated Market Value
Estimated Tax Capacity
Estimated Taxes
Estimated Tax Increment
Local Tax Rate. Pay 2002 estimate
State Ta= Rate. Pay 2002 estimate
Combined Tax Rate - CJI Property Only
Admin Fees
56 Townhomes ~ 160,000 per unit =
56 Townhomes ~ 2,268 per unil =
56 Townhomes @ 2,089 per unit =
~ Coverage 17.6 units per acre
8,960,000
89,600
127,030
116,975
1.4177§ ~
0.57933 C/I only)
1.90708 ..
used for ~ax increment calculations
10.000%
1.4%
El? Tax Rate
2005
2006
State AudAorFec
0.425%
Inflation (aP, er 2 yrs of lull value in each tract)
PV Rate. Rev. Note 12/1/2002
PV Rate. City 12/1/2002
0.000%
7,00%
5.00%
20D~
2005
13.3 tJrnesMVincresse
20O6
2007
92.1%ofto~llaxes
Approved EDA Minutes
Regular Meeting
CALL TO ORDER
ROLLCALL
APPROVE MINUTES
//~OTENTIAL
REDEVELOPMENT
OF 5620 WINNETKA
IMP. PROJECT 733
Item 4 ~
New Hope EDA
Page 1
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
September 23, 2002
City Hall
President Enck called the meeting of the Economic Development Authority to order
at 8:01 p.m.
Present:
W. Peter Enck, President
Mary Gwin-Lenth, Commissioner
Sharon Cassen, Commissioner
Don Collier, Commissioner
Pat LaVine Norby, Commissioner
Motion was made by Commissioner Gwin-Lenth, seconded by Commissioner
Collier, to approve the Regular Meeting Minutes of September 23, 2002.
Voting in favor: Cassen, Collier, Gwin-Lenth, Norby; Voting Against: None;
Absent: None; Abstained: Enck. Motion carried.
President Enck introduced for discussion Item 4, Discussion Regarding Request by
Armory Development II LLC, to Coordinate with City Staff and Financial
Consultant on Potential Redevelopment of Frank's Nursery Site at 5620 Winnetka
Avenue North.
Mr. Kirk McDonald, Director of Community Development, stated staff has been
conducting discussions with Armory Development on a periodic basis since the
spring of 2002 regarding the potential redevelopment of the Frank's Nursery site.
Armory Development would like to move forward and present the proposed project
to the Economic Development Authority at this time. He shared that Armory
Development is prepared to introduce their team and proposed project.
The project that Armory Development has planned is comprised of 56 townhomes
on the site. The units will be two or three stories tall and will range between 1,100 -
1,400 square feet. The sales plan calls for the units to be marketed between
$150,000 - $190,000 depending on final development costs. The target demographic
will be the young professional and ftrst-time homeowner.
At this time, Armory Development has come to an agreement on the land purchase
price with the owner, a large insurance company in Iowa. Negotiations are ongoing
with Frank's Nursery on the buy-out of their lease. If successful, construction could
occur next spring.
Because this is a redevelopment site, there will be additional costs in the demolition
of the site, refitting of the infrastructure to meet the new development, as well as
costs associated with watershed issues. Armory Development expects these
additional costs to be approximately $350,000. They are requesting that the City
include this site in the TIF District in order to offset this cost.
Mr. McDonald indicated that staff started meeting with the developers prior to the
time that the Developers' Roundtable was conducted in June for the Livable
Communities Task Force, although the developers agreed to participate in that
process. Their redevelopment proposal for the Frank's site was reviewed by the
Livable Communities Task Force at the August 21 task force meeting and the task
September 23, 2002
ADJOURNMENT
force was very. supportive of the proposal. Due to the fact that work on this project
started prior to the roundtable, stuff and the developer are requesting to move this
project along to the EDA for consideration. It is anticipated that the proposals for
the remainder of the Livable Communities sites will be presented to the CiDJ
Council by the end of the year.
Smffhas requested that the financial consultant review this request on a preliminary
basis and that analysis shows that the project could generate enough revenue thfit
the City could provide some assistance for site development. Staff is requesting
EDA approval to move forward in working with the developer and financial
consultant to develop more definitive numbers, discuss the type of assistance and
develop potential terms of agreement. Owner-occupied townhomes are a specific
type of housing that are needed in the City, according to both the Comprehensive
Plan and the Life Cycle Housing Study.
Staff supports this proposal and recommends that the EDA authorize staff to move
forward with this request.
Mr. Charlie Nestor, GSR Real Estate Services, was recognized. He explained their
objective to locate sites similar to Frank's Nursery within inner-ring suburbs. He
noted the largest hurdle has been negotiations with Frank's Nursery. Mr. Nestor
explained that some units would be two bedrooms and some would be two
bedrooms plus a den.
The EDA expressed support of the concept. President Enck requested the following
information be presented at a later date: amenities of structure, quality of
construction (to reduce maintenance costs), and history on past projects as well as a
list of prior projects. The EDA asked the developer to consider inclusion of
playground equipment within the plan.
Commissioner Gwin-Lenth questioned the storm water drainage issues.
Mr. Vince VanderTop, Assistant City Engineer, stated water quality is a
consideration with any redevelopment. He stated one option being considered is a
financial contribution for consuuction of a regional pond downstream. He noted
property is available north of the site which could be modified to handle drainage
fi.om multiple properties. ·
Commissioner Cassen cautioned that the City needs to limit its liability and consider
the timeframe it would take to recoup any financial assistance.
The EDA directed staffto proceed to meet with the developer on preliminary plans.
Motion was made by Commissioner Collier, seconded by Commissioner Norby, to
adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 8:21 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA
Page 2
September 23, 2002
Office Use
Me opoHt CouncU
Predevelopment Grant Application
Supported by grants from the Minneapolis Foundation and Family Housing Fund
Administered by the Metropolitan Council
Instructions: Submit form and attachments by September 15, 2003. Use font size 11. Use of bulleted lists is
encouraged. Do not attach a coversheet, page(s), or use any graphic images on top of the application form.
Limit application to 4 pages plus Appendices A and B.
Contact Information
1. Provide the following grant contact information.
Project Name: Northeast Winnetka Townhomes
City of New Hope
New Hope
Intersection of Bass Lake Road and Winnetka Avenue
Applicant (Governmental Unit):
Project Location (city):
Address (street boundaries or
major intersection):
Pdmary Project Contact: Name:
Title:
Adclress:
Phone:
Fax:
E-mail:
Authorized official(s) - (names
and titles for contract execution)
Project Summary
Kirk McDonald
Community Development Director
4401 Xyion Avenue North~ 55428
763-531-5196
763-531-5136
kmcdonald(&.ci.new-hope.mn.us
W. Peter Enck Daniel J. Donahue
Mayor City Manager
2. Summarize the redevelopment, adaptive reuse, or infill project that supports housing development and its
key components and how this grant will allow your community to overcome the project's impediments.
(Limit 20 lines)
As part of a 2000 Livable Communities Study, five target redevelopment sites were identified within northern
New Hope. One of these redevelopment sites included the Frank's Nursery site and the Wincrest
Apartments, located in the northeast quadrant of the Bass Lake Road and Winnetka Avenue intersection.
The Livable Communities Task Force recommended the rehabilitation of the Wincrest Apartments and
redevelopment of the Frank's Nursery site to a medium to high density residential land use.
Subsequent to the Livable Communities Study, two developers proposed land use development concepts for
the Frank's site. The preferred concept was submitted by GSR, which later became Master Development
Group. Master has been in negotiations with the property owner and Frank's Nursery and has obtained a
3urchase agreement for acquisition of the property from the property owner and is currently finalizing a lease
buyout and relocation agreement with Frank's Nursery. The purchase agreement is contingent on
development approvals with a closing date of January 31, 2004. As such, all site due diligence and
development review must be completed by year end 2003.
The Master's concept project will redevelop the Frank's Nursery site into 45 to 56 townhome units that would
have a price ranging from $160,000 to $200,000. This housing type was identified as a need in a 1997 Life
Cycle Housing Study prepared for the City which expresses demand for greater housing diversity to include
step up and empty nester housing, owner occupied units, townhomes and twinhomes. This project would
serve not only as a redevelopment tool, but as a life cycle housing opportunity.
X
Project Readiness and Level of Commitment
Please check (X) the following if they are completed or well underway, and briefly provide additional
information as noted. If not applicable, place a 'NA' in the box. If not complete, state anticipated date of
completion in the box.
NOTE: Contact your Metropolitan Council Sector Representative before September 2, 2003 for a vicinity
map showing project location; planned land use; and regional context.
Master plans and development plans would be developed as the project proceeds through
development review. The applicant has not prepared these as of this date due to the lack of land
ownership or control. If the project proceeds ahead, we would anticipate that master plans and
development plans would be completed by year end 2003.
Site plans
Comprehensive plan amendment. If needed, please describe: An amendment is needed to
change the land use designation on this site from commercial to multiple family. The amendment
would be processed in conjunction with any development applications and would likely be
completed by ),ear end 2003.
Zoning changes and variances. If needed, please list and include change to/from: Currently, the
site is zoned CB, Community Business. The site will be rezoned to planned unit development to
provide some design flexibility to accommodate the proposed urban density townhome project.
Zoning changes and planned unit development would likely be processed in conjunction with
development applications and the Comprehensive Plan amendment to be completed in year end
2003.
Planned Outcomes of Project Development
4. Descdbe the planned outcomes of the project including revitalization, infrastructure, housing and land use,
and natural resources.
Be concise, keeping responses to 10 lines for each question (or a total of 50 lines for these 5 questions).
4a. Descdbe the existing land use
and how it balances residential,
commercial, workplace, and
public/green spaces within and
adjacent to the site.
4b. Describe how this project will
result in more connected or
walkable places (street
connections, pedestrian
walkways, development centers).
· The area immediately surrounding the site includes high
density residential uses to the north, commercial uses to the
south, Iow density residential uses to the east, and high-
density senior housing to the west.
· Many excellent shopping and employment opportunities are
provided by a major commercial center that is a half mile to
the east of the- site, in Crystal, and an industrial park that is a
half mile to the west of the site.
· The proposed project would have pedestrian access to
schools, church, golf course (9-hole), two parks, commercial/
industrial areas and mass transit stops.
Hosterman School, Begin Park and the New Hope Golf
Course, Elm Grove Park, and St. Raphael's Church
May 20, 2003 2
4c. Describe how this project utilizes
existing regional infrastructure
(transit stops, transportation
corridors, existing sewer capacity,
parks and trails).
Tl~e site is located on metro bus transit routes along both
Winnetka Avenue and Bass Lake Road, which offers both
local and express service.
This redevelopment project will capitalize on the use of in
place utility infrastructure related to sanitary sewer, water,
and storm sewer. This redevelopment will contriDute
financially to regional infrastructure systems.
4d. Describe how this project
considers the natural
environment.
4e. Describe how public involvement
entered into the planning
process, including businesses,
residents, and public and private
partnerships (public meetings,
public involvement committees,
open houses).
The site consists of a nursery, retail store with outdoor storage and
large paved parking lot. The proposed redevelopment will introcluce
an urban townhome neighborhood, however, the percentage of
mmpervious surface will be reduced and any future development will
be processed in accordance with the City's Surface Water
Management Plan and Shingle Creek Watershed. Storm water
treatment (quantity/quality) will be handled down stream. This
project will contribute financially to the City's regional storm water
system.
· The Livable Communities Task Force consisted of 60
members representing a cross section of local residents,
businesses and community leaders.
· The Livable Communities process included a community
open house as well as review by the Planning Commission
and City Council.
· The current development review process will require public
headngs related to Comprehensive Plan amendment, zoning
change, and the review of development plans.
Actions/Process to Facilitate Project Development
5. Describe how this grant would facilitate redevelopment that supports housing production and overcome
impediments to implementation, including obtaining plan approvals, developing implementation tools, and
leveraging other funds.
Address (if applicable) planning or regulatory tools and techniques necessary to overcome barriers to
redevelopment; specific private, public, and nonprofit funding sources or techniques used to cover the cost
of redevelopment; and time-sensitive impediments to redevelopment of this site.
Some examples include (but are not limited to):
· planninq or requ!atory tools and techniqu=~_--_-: overlay district, rehabilitation codes, flexible zomng, joint
development plans, development agreements, streamlined approval process
· s ecific dvate ubli and non rofit fundin sources or techni ues: TIF, tax abatement, grants, tax
credits, development fees waivers
1VJay 20, 2003
3
Be concise, keeping response to 20 lines.
The closing date on site acquisition is scheduled for January 31, 2004. In order to achieve this closing, all
site due diligence and development approvals must be processed and completed by year end 2003. This
grant will be used to offset costs associated with land acquisition, business relocation, site preparation, and
project financing, including but not limited to, environmental audits, title research, financial analysis, blight
analysis, and a predevelopment agreement between the City and Master Development Group.
To effectuate the redevelopment plan, the City anticipates processing a Comprehensive Plan amendment,
rezoning to planned unit development to accommodate this high density residential project by providing
flexibility in density and setbacks. Master will be preparing a development application for review in October
and November 2003.
The City will be preparing a tax increment plan and a redevelopment district to provide financial assistance to
the project to cover extraordinary acquisition, relocation, and demolition costs.
The grant will be utilized to cover eligible soft costs related to site investigation, plan preparation, and legal
services related to the project start up.
May 20, 2003
4'
Appendix A
Project Overview and Funding Request
Fill in the following table, listing specific project tasks, requested amount of funds, timeline and responsible persons (including consultants).
See cover page for information on eligible/ineligible uses. Limit to 1 page, landscape layout.
~ Task I Eligible COst .__~_posed Outcome Responsible Person s_(~__ Start Dai
1 Environmental Study Phase I Determine environmental Master 9/03
=ondition of the site
2 Environmental Study Phase II 3etermine environmental Master 9/03
~ (if necessary) condition of site/action plan
3 Survey Define project site / Master 9/0~
conditions
4 ak°praisal Define site value Master 9/03
5 15utchase Agreement Lease --stablish site control Master/City 9~03
Buyout/Relocation Legal
6 9light Analysis -- Qualify TIF District City 9/03
7 Architecture Fees Development plans Master 10/03
8 Financial Analysis =roject feasibilily City 9/03
9 ,City Administration I Legal / Development contracts / City City 9/03
Planning Administration review
10
Ie End Date ~
10/03 $2,000
10/03 $3,000
10/03 $2.000
10/03 $5.5OO
10/03 $16,000
10/03 $2,5O0
11/03 $8,0OO
10/03 $5,000
12/03 $5,500
TOTAL
!~ $49,500
[May 20, 2003
r'age I oI ~
Dore.sky.Ke~
From: McDonald Kirk
Sent: Friday, October 31, 2003 10:17 AM
To: Baldwin Amy; Doresky Ken
Subject: FW: Northeast Winnetka Townhomes -- Predevelopment GrantApplication
Again, FYI, and please print out a copy for me. Thank you
..... Original Message .....
From: Jim Uttley [mailto:jim.uttley@metc.state.mn.us]
Sent: Thursday, October 30, 2003 5:40 PM
To: McDonald Kirk
Cc: Donahue Dan
Subject: Northeast Winnetka Townhomes -- Predevelopment GrantApplication
Kirk --
Congratulations! I am happy to confirm that your project is one of those recommended for funding. Attached
is a copy of the predevelopment grant staff report going to the Council's Community Development Committee
for action on November 3. We would encourage you or one of your colleagues to attend the committee
meeting to answer any questions should they arise. The meeting will begin at 4 p.m. and will be held in
Conference Room iA at the Council's offices at Mears Park Centre, 230 East Fifth Street, St. Paul. Final action
on the grant is expected to occur at the Metropolitan Council meeting on November 12.
One of the attachments outlines the evaluation of the project that you submitted. It will give you an idea
where the application was strong and where it fell short. As you will see from the staff report, there were many
applications for not enough dollars to fund them all--the applications were highly competitive. If you have
questions about the review process or something in the staff report, please contact the project leader, Robin
Caufman (651-602-1457, robin.caufman@metc.state.mn.us).
We appreciate your taking the time to respond to the Council's call for applications for this one-time grant
program, We hope that the project will be able to move forward rapidly with Metropolitan Council financial
support.
Best regards,
James P. Uttley, AICP, Planning Analyst
Staff Sector Rep for Council Districts 5, 6, 7 and 8
Planning and Growth Management Dept.
Metropolitan Council
230 East Fifth Street
St. Paul, MN 55101-1626
651-602-1361
FAX 651-602-1674
jim.uttley@metc.state.mn.us
11/3/03
Meeting date: November 3, 2003
Community Development Committee
2003-308
ADVISORY INFORMATION
Date October 28, 2003
Subject Predevelopment Grant Funding Recommendations
Districts, Members All
Prepared by Robin Caufman, Senior Planner (651-602-1457)
Melissa Manderschied, Planner (651-602-1126)
Debra Detrick, Senior Planner (651-602-1327)
Elizabeth Ryan, Director of Housing & Livable Communities (651-602-1615)
Ann Beckman, Acting Director, Community Development (651-602-1669)
Caren Dewar, Deputy Regional Administrator (651-602-1306)
Community Development, Housing & Livable Communities and Planning
and Growth Management
Division/Department
REQUEST SUMMARY
The Family Housing Fund and Minneapolis Foundation provided $300,000 to the Metropolitan
Council in 2002 to assist reinvestment activities that support housing production in metropolitan
communities. The Metropolitan Council used this foundation money to create a one-time
predevelopment grant fund to assist communities with reinvestment activities that support housing
production in cases where plans are complete but necessary support to implement the plans is not
available. This initiative builds on the regional reinvestment strategy that encourages redevelopment,
infill, and adaptive reuse. In response, the Council received 15 applications for the Predevelopment
Grant program, totaling $887,650. This request recommends seven projects for funding.
PROPOSED ACTION
Staff recoi~r~ends that the Metropolitan Council award Predevelopment grants totaling $300,000 as
follows:
City Project Request Recommendation
I New Brighton NW Quadrant Redevelopment $50,000 $50,000
2 Columbia Heights Industrial Area Redevelopment $50,000 $50,000
3 Eagan Cedar Grove Redevelopment $50,000 $50,000
4 Minneapolis Lowell School Site $50,000 $50,000
5 Minneapolis Nicollet Hotel Block Project $50,000 $41,000
6 ?..~_amsey _ Central Rural Reserve CCRA Study $33,000 $33,000
7~ Hope
NE Winnetka Townhomes
$49,500 $26,000
32MENTs
1 - Project Summary
- Project Evaluation Summary Sheet
- Review Process
REGIONAL BENEFITS
Reinvestment at the local level has benefits throughout the entire region. The addition of housing
units and total redeveloped, infill, or adaptively reused acres are two measurements of regional
benefits. If all the proposed units aro built by the seven projects funded with Predevelopment Grant
dollars, approximately 4269 units would be added, including many affordable units. The seven
recommended projects represent 1,075 acres of redeveloped, infill, or adaptively roused land.
SELECTION PROCESS
The Council received 15 Prodevelopment Grant funding proposals on September 15, 2003,
requesting a total of $887,650. First, a technical review team, comprised of Planning and Technical
Assistance, Environment, Transportation and Livable Communities staff, provided technical
comments and evaluated all 15 grant proposals against the selection criteria, focusing on land use
and infrastructure.
Second, the predevelopment review team evaluated the proposals against the selection criteria,
focusing on the project's plans to provide housing and project readiness. Seven projects aro
recommended for funding, based on the combination of the technical reviewers' comments and the
predevelopment review team evaluation.
Third, the predevelopment review team reviewed the seven projects recommended for funding and
evaluated the eligibility of each funding item requested. The predevelopment team recommends
that five of the projects receive the full funding amount requested and two receive partial funding.
See Appendix 1 for a description of each proposal and Appendix 2 for evaluations and comments.
IAPPENDIX 1 - PROJECTS SUMMARY
RECOMMENDED FOR FUNDING
New Brighton, NW Quadrant Redevelopment
Northwest Quadrant Redevelopment Area is located on the west side of Old Highway $, just north of 1-694 and west of 1-
35W. The redevelopment plan calls for a mixed-use development encompassing over 90 acres, taking advantage of the
adjacent 225-acre regional park along Long Lake as well as the access afforded by two major freeways. Forty-five acres of
the redevelopment site is planned for approximately 730 units of housing, with some combination of townhomes.
apartments, and condominiums.
The City completed a limited Phase I environmental assessment for the entire project and additional studies in conjunction
with property acquisitions. The City also completed master plans and completed and approved an Alternative Urban
Areawide Review (AUAR) for the project area. Developers are prepared for construction to begin in spring 2005.
The City requested $50,000 for further financial analysis, design, appraisals, surveys, and environmental testing, in order
to keep this project on track. Staffrecommends the project be awarded $50,000.
Columbia Heights, Industrial Area Redevelopment
The Industrial Area Redevelopment site is located just north of Minneapolis adjacent to University Avenue (Hwy 47), a
few blocks west of Central Avenue (Hwy 65). The City recently completed a planning process that identifies
approximately 29 acres of current dilapidated, blighted and under-producing industrial land for redevelopment. The
redevelopment plans includes residential development, incorporates an existing 30-acre park (Huset) and proposes a
parkway with trails, park connections, park amenities and stormwater features. The plan identifies 16.6 acres for
development of life-cycle and market rate housing of varying densities and 8.5 acres adjacent to University Avenue for
redevelopment of either a new industrial use or additional housing.
The City recently completed the Phase II environmental testing with a plan to apply for TBRA Met Council/DEED funds
in fall 2003 to remediate environmental contamination. A recent housing study by Maxfield Research indicated that the
City market area could absorb up to 1,285 housing units, with a potential of 350 + units for this site.
The City requested $50,000 for infrastructure feasibility analysis, engineering and appraisals. Staff recommends the project
be awarded $50,000.
Eagan, Cedar Grove Redevelopment
The Cedar Grove Redevelopment Area is located at the intersection of Cedar Avenue and County Road 13. The project
proposes redevelopment of underutilized retail into mixed uses, including up to 350 units of attached housing and a limited
amount of commercial and office development.
The City completed the Cedar/13 Study, an AUAR for the project area, and the corresponding Comprehensive Guide Plan
Amendment. The area is defined as Special Area 5 in the Comprehensive Plan that was amended to include the small area
plan and supporting text that calls for transit and a mixture of office/retail/mid and high density residential. The City
created a unique Zoning District for the area. The Cedar Grove District requires specific architectural guidelines and bulk
standards that bring buildings to the street, requires architectural relief/interest for all buildings and requires uniform
signage throughout the district. Maxfield Research completed a market analysis that clearly shows the largest present
market for the area is attached housing, followed by retail commercial.
The City requested $50,000 for phase I and II environmental testing and appraisals that will facilitate acquisition. Staff
recommends the project be awarded $50,000.
Minneapolis, Lowell School Site
The Lowell School Site redevelopment project creates a planned unit residential development on a vacant 2 acre site in the
Jordan neighborhood that is currently owned by the School District. The project includes the construction of 14 for sale
single-family homes, as urban "pocket park" and related infrastructure improvements. Project for Pride in Living. the
developer along with Habitat for Humanity, is also building single family homes on 10 nearby infill lots, currently under
construction. The City anticipates construction to start on the Lowell School Site in September 2004.
The City requested $50,000 for engineering infrastructure, road and sidewalk improvements, soil testing, soil remediation.
survey of the site and replatting the site into individual lots. Staff recommends the project be awarded $50.000.
Minneapolis, Nicollet Hotel Block Project
The Nicollet Hotel Block is located in downtown Minneapolis. adjacent to the new Minneapolis Central Library that is
currently under conslruction, and fronts on two key city streets - the Nicollet Mall (City's primary retail street)'and
Hennepin Avenue. The City purchased the 1.7-acre site using Federal Transit Administration (FTA) funds. In May of
2003, the City issued a formal Request for Proposals (deadline Oct. 10, 2003) inviting private developers to submi~
proposals for a mixed use, transit-oriented development (TOD) that could include up to 300 units of housing, structured
parking for residents, convenience retail, and an underground transit terminal. The transit component of the development
allows Metro Transit to remove and consolidate buses from a variety of downtown "on street" layover locations, and
eventually serve as a terminal for the Downtown Circulator bus system, scheduled to begin operation in 2004. The City
secured the capital funds for the terminal portion of the project through an existing FTA grant, a TEA-21 AILED grant,
Metro Transit agreements, a FY03 Congressional earmark, and future revenue from the sale of the land/air rights.
The City requested $50,000 for costs associated with the preparation and disposition of the Nicollet Hotel Block for
development. Staffrecommends the project be awarded $41,000 for appraisals, financial analysis, title work and
transaction costs, architectural and engineering costs, project management, environmental testing and surveys.
The application states that the project "could include up to 300 units of housing". Before funds are disbursed, the applicant
will need to confirm that the project includes housing as part of the redevelopment project.
Ramsey, Central Rural Reserve CCRA Study
The City identified the Central Rural Reserve Area (CRRA) for future redevelopment of a 970 acre area which was
subdivided into rural residential lots (1 and 2.5 acre) for single-family homes on septic. The CRRA contains 970 acres
that includes Ramsey Central Park and 570 single-family homes. The site is just north of the City's new Town Center
development that is served by regional infrastructure. The grant request focuses on developing implementation tools to
facilitate redevelopment that optimizes land use, promotes infill and redevelopment opportunities, increases housing
choices for area residents, and increases housing inventory. The City identifies the boundaries of the redevelopment area
as part of the comprehensive planning process and completed master planning process for the adjacent Town Center area.
The results and tools of the study will focus on how the transition from rural to more urban growth will work in Ramsey
and will provide for a framework for other municipalities. To preserve the area, the City restricts additional development
of this area to 4 in 40 density until the City completes the study to determine how to redevelop the CRRA at urban
densities that builds on the Town Center.
The City requested $33,000 to complete the CRRA study including inventory of existing land uses and natural features;
infrastructure, identification of development scenarios, determination and design of infrastructure, financial analysis and
implementation of land use and regulatory tools. Staff recommends the project be awarded $33,000.
· .~New H_w~_~_p~ Northeast Winnetka Townhome~--~s
The Northeast Winnetka Townhomes redevelopment site is located at the intersection of Bass Lake Road and Winnetka
Avenue. The plans are to redevelop the Frank's Nursery site into 45-56 new owner occupied townhomes ranging in price
from $160,000 to $200,000. The developer is in the process of acquiring the property from the existing owner, with
closing schedule in January 2004.
The City requested $50,000 for environmental studies Phase I and II, financial analysis, architecture fees, survey,
appraisal, and other costs associated with site acquisition. Staff recommends the project be partially funded $26,000 for
environmental phase I and H studies, surveys, appraisals, architectural fees and partial coverage of purchase agreement.
2
City/Project Name: New Hope, NE Winnetka Townhomes Overall Ranking: Medium HiglVMedium
Land Use/Systems Project Readiness
Criteria 1 2 3 i 4 5 I 6 i 7 I 8 o
t~ea-~i~h X X i X X I !
Criteria Comments
1: Balances
existing land
use
2: Delivers ·
reinvestment ·
w/housing ·
production
3: Utilizes ·
existing ·
investments,
along
transportatio
n corridors ·
4: Considers ·
natural
environment
5: Includes ·
public ·
involvement
& ·
partnerships ·
6: Uses ·
planning & ·
regulatory
tools 8:
techniques
7: Leverages ·
funding
sources
8: Overcome ·
impediments
to
implement
9: Moves ·
project ·
forward
· 3.17 acres, parcel now occupied by viable business (Frank's Nursery). Not "blighted".
· Proposal to buy out, tear down existing building, and replace with 45-56 units of townhomes ( 17.7 dwac).
· Existing amenities in area good for high density residential.
· Lacks green space or pedeslxian connections to Winnetka Avenue. Layout not very pedestrian fi.iendly, having to
walk through driveways to get to Winnetka.
· Surrounded by a mix of high-density and low-density residential and commercial uses.
· Pedestrian access to schools, recreation, commercial and services.
Meets the purpose of the program. Introduces townhomes to the area. Likely to be affordable to 80% median.
Market-rate owner-occupied redevelopment/in-fill residential development in fully developed suburb.
Density and diversification of housing oppornmities for empty nesters. Adds 45-56 townhouses.
Project could/should be more upscale, as city as a whole is highly affordable.
Transportation: Near Bass Lake and Winnekta, both A minor arterials.
Entire area within the service area of MCES liftstation L41, and interceptor forcemain 7114. Both facilities and
the downstream system have adequate capacity to accommodate the proposed re-development. No impact to
regional wastewater facilities.
On bus lines on Winnetka and Bass Lake Road provide express and local service. Missed oppornmity.
Project compliment current and planned transit service and facilities.
Sensitive to environmental issues. EAW not needed. Part of grant will pay for environmental scoping.
Unclear what facilities are 'downstream' to treat storm water runoff fi.om site.
Reduces impervious surfaces.
Future development to meet requirements in surface water management and watershed plan~.
Coaunanity support and participation via task force.
One of five sites targeted by city for redevelopment.
Task force represented cross-section of residents, businesses and community leaders, plus held open house.
Site development review to involve public hearings.
Amend con~, plan, rezone to PUD, accommodate high-density through flexibility in density and setbacks.
Tools not yet implemented.
Plans to create redevelopnient district and prepare TIF plan to address acquisition, relocation and demolition costs.
Real deadline approaching; must complete site due diligence and development review soon since purchase
agreement hinges on development approvals by 1/31/04.
One of five redevelopraent projects targeted by city. Site plans complete.
Redevelopment in final stages of meeting purchase agreement requirements and application up for review in Fall.
Documented demand for life-cycle housing in community.
No issues with comp plan update. No land use issues. No environmental reviews likely to be needed.
16