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EDA 11/24/03
· ' ,, OFFICIAL FILE COPY CITY OF NEW HOPE EDA MEETING CiG Hall, 4401 Xylon Avenue North November 24, 2003 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Collier Commissioner Mary Gwin-Lenth Commissioner Steve Sommer 1. Call to order 2. Roll call Approval of regular meeting minutes of November 10, 2003 Resolution approving purchase agreements with JCS Development Inc. and Frey Development Inc. for sale of 7500-7528 42'~ Avenue North property (improvement project no. 665) Resolution approving declaration of covenants for 7500-7528 42r~ Avenue North (improvement project no. 665) Resolution approving environmental monitoring proposal for 7500-7528 42'~ Avenue North property (improvement project no. 665) Resolution approving purchase agreement and relocation benefits for 7601 Bass Lake Road (improvement project no. 756) 8. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes Regular Meeting CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 665 Item 4 EDA RESOLUTION 03-09 Item 4 IMP, PROJECT 733 Item 5 New Hope EDA Page 1 November 10. 2003 Ciw Hall President Enck called the meeting of the Economic Development Authon~, to order at 9:01 p.m. Present: W. Peter Enck, President Sharon Cassen, Cormmssioner Don Collier, Commissioner Mary Gwin-Lenth, Commissioner Steve Sommer, Commissioner Motion was made by Commissioner Collier, seconded by Comrmssioner Gv~4n- Lenth, to approve the Regular Meeting Minutes of October 27, 2003. All present voted in favor. Motion carried. President Enck introduced for discussion Item 4, 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). Mr. Ken Doresky, Community Development Specialist, stated adoption of the resolution will establish a public heating to be held November 24 for the sale of the city-owned property. He stated purchase agreements have been obtained from both Culver's Restaurant and Frey Development for the office condominiums. Commissioner Collier introduced the following resolution and moved its adoption "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)." 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, 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). Mr. Kirk McDonald, Director of Community Development, stated the developer has submitted the appropriate fees to the city to cover the cost of the tax increment financing (TIF) analysis of the proposed project. Staff recommends that the study be completed by Krass Monroe, the city's redevelopment financial consultant. The EDA expressed support for the TIF analysis. Mr. McDonald also updated the EDA on other matters relating to the site. He stated Frank's Nursery is interested in relocating to the vacant Lyndale Garden site, and staff has provided a letter authorizing Frank's to utilize the same outdoor storage areas that were previously approved for Lyndale without securing additional planning approvals by the city. He also reported that staff has been notified that the pre-development grant submitted to the Metropolitan Council for this project is November I 0, 2003 MOTION Item 5 ADJOURNMENT recommended for partial fimdmg. The intent is that the funds would be utilized both the city and developer to help "write down" some of the up front development costs on this project. Mr. Doug Hoskin, Armory Development II, was recognized. He stated the unit prices will range from $170.000 to $195,000. He stated a similar development was built in Richfield and was well received. Mr. McDonald indicated the special legislation created a project area and this parcel is included in it. The city can also create separate tax increment districts. He stated the proposed number of townhomes ranges from 45 to 56. Mr. Hoskin noted in order to construct an attractive development, the project requires adequate green space and this may impact the final number of units. He stated a closing is tentatively planned for late January with ground breaking to occur in the spring. Motion was made by Commissioner Sommer, seconded by Commissioner Cassen, authorizing the tax increment financing analysis. Ail present voted in favor. Motion carried. Motion was made by Commissioner Cassen, seconded by Commissioner Collier, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 9:15 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 November 10, 2003 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 11-24-03 EDA By: Kirk McDonald, Director of CD ',7'.,v~7,. Item No. & Ken Doresky, CD Specialist Bye.._//~ 4 PUBLIC HEARING: RESOLUTION APPROVING PURCHASE AGREEMENTS WITH JCS DEVELOPMENT INC. AND FREY DEVELOPMENT INC. FOR SALE OF 7500-28 42ND AVENUE NORTH PROPERTY (IMPROVEMENT PROJECT NO. 665) ACTION REQUESTED This is a public hearing for EDA consideration of the attached resolution approving purchase agreements for the sale of City-owned property located at 7500-7528 42n~ Avenue North. The proposed purchase price and joint development is as follows: 1. Culver's Restaurant $380,000 2. Office Condominiums (8 units) $130,000 Total Purchase Price $510,000 On June 23, 2003, the EDA reviewed the joint development proposal, was supportive of the developer's offer 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 two purchase agreements are attached. In addition to the purchase price, the developers have agreed to contribute $47,100 for regional storm water improvements based on the estimate prepared by the City Engineer (memorandum attached). The storm water fee is separate from the purchase price and will be included in the development agreement. Also, the city's not paying any realtor fee in conjunction with the sale of the property. 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. At the time the Ordinance was adopted, staff recommended and the Council agreed that the newly created fee would not be applicable to developments currently in process, including this project and Woodbridge Senior Cooperative, Plymouth Heights Pet Hospital and St. Joseph Catholic Church. The following three items are being presented for EDA consideration at tonight's meeting: 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). This is the same procedure I:\RFA\PLANNING\Electronic Industdes\Q - PH.doc Request for Action Page 2 11-24-03 that was followed for the sale of 9200 49~ Avenue North to the Plymouth Heights Pet Hospital. 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. 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 addressing the commercial portion of this goal through the city's many development activities, including selling city-owned property for redevelopment. BACKGROUND On November 10, 2003, the EDA approved a resolution scheduling a public hearing to consider the potential sale of City-owned property located at 7500-7528 42n'~ Avenue North 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 offer 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. 2. 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.. 3. 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 Request for Action Page 3 11-24-03 "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 at tonight's meeting. 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 at tonight's meeting 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 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 42"d 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. Request for Action Page 4 11-24-03 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, 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 Request for Action Page 5 11-24-03 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 4 "~ ' 2 and W~nnetka Ave. N. Although the subject location is 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 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. FUNDING The City purchased the three properties including the contaminated property entirely with TIF funds. Acquisition and demolition costs for all three properties equaled $1,091,709. The DTED Contamination Cleanup Grant can pay up to 75% of the cost of cleaning up the contamination. Electronic Industries has aqreed to provide the 25% match. The total estimated cost to implement the RAP is $324,218. Clay investigatic~n 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 Request for Action Page 6 11-24-03 City is not responsible for contributing funds for site cleanup. Costs incurred by the City's environmental consultant will be paid with TIF. ATTACHMENTS · Public Hearing Notice · Resolution · Purchase Agreements · City Attorney Correspondence, 11-18-03 & 11-3-03 · Location Map & Proposed Site Plan · City Engineer Memorandum, 4-28-03 · EDA Minutes, 6-23-03 NOTICE OF PUBLIC HEARING PER MINN. STAT. {}469.029 AUTHORIZING SALE OF PROPERTY AT 7500-7528 42"a 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 Citv of Nexv 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 (763) 531-5117, TDD number (763) 531-5109). Dated the 10th day of November, 2003. s/Valerie J. Leone Valerie J. Leone City Clerk (Published in the Minneapolis Star Tribune on the 12th 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. 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. Address. 7500 42nd Avenue North, New Hope, MN. Property Identification Number. 17-118-21-22-006. Parcel 7. Parcel 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. Address. 7516 42nd Avenue North, New Hope, MN. Property. Identification Number. 17-118-21-22-0007. Leea! 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. Pronerty Identification Number. 17-118-21-22-0008. CITY OF NEW HOPE EDA RESOLUTION NO. 03- RESOLUTION APPROVING PURCHASE AGREEMENTS WITH JCS DEVELOPMENT, INC. AND FREY DEVELOPMENT, INC. FOR SALE OF 7500-7528 42"d AVENUE NORTH PROPERTY BE IT RESOLVED by the Economic Development Authority of the City of New Hope as folloxvs: WHEREAS, the Economic Development Authority of the City of New Hope (hereafter "EDA") is the fee owner of certain real estate known as 7500-7528 42nd 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 EDA with a purchase agreement (attached as Exhibit C) to buy approximately 57,050 sq. feet of the Property for the purpose of developing and constructing a Culvers franchise restaurant on the Property; and WHEREAS, FREY DEVELOPMENT, INC. (hereafter "FREY") has presented the EDA with a purchase agreement (attached as Exhibit D) to buy approximately 55,090 sq. feet of the Property for the purpose of developing and constructing business condominiums on the Property; and WHEREAS, the EDA held a public hearing at its November 10, 2003 meeting after duly published notice to sell the Property to JCS and FREY in compliance with Minn. Stat. §469. 029(2) and at said heating the City Council considered all information presented by the public, JCS, FREY and its own opinions and knowledge regarding the Property and the proposed sale of the Property; and WHEREAS, the City's obligation to sell the Property to JCS and FREY per the attached purchase agreements is conditional upon 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; and WHEREAS, the EDA hereby determines the City's interests will be best served if the attached purchase agreements for the sale of the Property to JCS and FREY is hereby approved permitting JCS and FREY to prepare and submit to the City a development plan for the Property as described above. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. -1- That the purchase agreements For 7500-7528 42nd Avenue North with JCS and FREY are hereby approved and the President and Executive Director are hereby authorized and directed to sign the agreements on behalf of the EDA. That the Executive Director and EDA staff are author/zed and directed to take all advisable and/or necessary actions to fulfill the EDA's obligations under the purchase agreements. This resolution is hereby adopted by the EDA this 24th day of November, 2003. W. Peter Enck, President Attest: Daniel J. Donahue, Executive Director P:La, ttomeyXDJDL2. City of New Hope\99.11288 - Sale of E! Site\99-11288-014-reso approving PA.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. 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. Address. 7500 42nd Avenue North, New Hope, MN. Property Identification Number. 17-118-21-22-006. Parcel 7. Parcel 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. Address. 7516 42"d Avenue North, New Hope, MN. Properly Identification Number. 17-118-21-22-0007. 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. Address. 7528 42"a Avenue Nor'ah, 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, 75:16, & 752'8 42nd Avenue 7528 : 7516 : 7500 ' : ( 5) · (8) : (7~ ' -4- EXHIBIT C JCS PURCHASE AGREEMENT -5- PURCHASE AND SALE AGREEMENT This Purchase and Sale Agreement ("Agreement"} is made bx and bemeen the E£'ONO..MI(' DEVELOPMENT AUTHORITY OF THE CITY OF NEXt' HOPE. MINNESOTA. ("Seller"), and ,}CS DEVELOPMENT, INC., a Minnesota Corporation ('"Buyer"} consideration of the covenants and agreements of the respective parties as hereinafter set tbrth. Seller shall sell and Buyer shall purchase a tract of land ("Property"} as outlined on Exhibi! and which is legally described on attached Exhibit B 1. Purchase Price. The purchase price for the Property shall be Three Hundred Eight5 Thousand Dollars (5;380,000.00), which Buyer shall pa3' as follows: "Earnest Monex" of One Thousand Dollars ($1,000.00) will be submitted bv Buver to Seller on the Effective Date as defined below and made payable to a Title Company to be mutualh' agreed upon bx' the parties ("Escrow Agent"). Buyer also shall pa3' 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 ueneral Warranty Deed (the "Deed"), conveying marketable title of record, free and ci'ear o? 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 pe~'son, firm o'r entity has any right of refusal, option or other right to acquire ali 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 a Culver's restaurant with approximately 120 seats and a drive-through window ("Buyer's Intended 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. I I0~ 2003 al 12 n3 PM d} If the real property is subject to restrictive covenants. Seller has not received am' notice from any person as to a breach of the covenants Seller has not received am nonce re)n: an.,,' governmental authority concerning any eminent domain, condemnation, special taxm~ district, or rezoning proceedings e) The Property is not subject to an,,.' 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 representations shall be grounds for Buyer to terminate this Agreement. In the event of such termination Buyer's Earnest Monev shall be returned. 4. Conditions of Offer. The Buver'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 Perio& 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 sub. ject to the following Permitted Ex'ceptions: 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 ~ovenants 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 rezoning, variances, special use permits, subdivisions and any other governmental permits, consents and authorizations, which are necessary or desirabl~ for Buyer's Intended Use, including without limitation final building permits. c) Obtaining financing under reasonable terms and conditions suitable to Buyer. 2 I I '04 2003 a! 12 53 d} Buver and Seller agreeing to terms and provisions of a document which b-ill allow' Buyer to obtain and subsequently construct and maintain cross easements for access and parkin,, f"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 (42n~ 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 f) Obtaining corporate approval from Cuiver's Franchising, Inc. If anv 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 bv Buyer pursuant to this paragraph, the Earnest Money shall be promptly returned to Buyer, both Bu'yer and Seller shall execute and deliver to the other an original cancellation of the Agreement, and neither part3, 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 bv Buver and Buyer shall proceed to close this transaction in accordance with the other terms and ~ondiiions of this A~eement. The Buyer hereby acknowledges that the Buyer has been fully informed of the ground water and soil contamination existing on the Property ~nd has had aml~le 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 3 l l'0-1'2003 at 1253 PM desires. Buver'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 Buver agrees to repair or restore any damaues caused bx Buyer or its emplovees, a,,ents, or contractors durin,, the course of makin,.2, such examination. measurements or tests in any reasonable manner specified by the Seller or the ~linnesota Politmo~ Control Agency. Buyer shall indemnifi,' and hold Seller harmless from and against any lien. claim, los.,, tiabihtx. cost. damage or injury asserted against or suffered by Seller or the Propen.x. includm,_, but limited to attorneys' fees. related to any entry by Buyer~ its assigns or ant of it~ agents. representatives, contractors or employees, as related to this Agreement 7. Title Commitment and Policy. a~ b) Seller shall deliver to Buver a Commitment for an ALTA Form B owner's policy of title insurance (the "Commitment") issued bv a title company duly licensed in Minnesota ("Title"), covering title to the Property being purchased i~ 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 icoilectively "Title Charges"): Buyer shall pay the premium for the lender's simultaneously issued policy, if an3'. Buver shall have ten (10) days after receipt of the Commitment and Survey to reviev~' 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 ~liscovered by Buyer. In the event that the Buyer does not within such ten (10) day period rove notice to S~ller objecting to any exceptions to title disclosed in the Commitment or ~he Survey, then all such exception~ 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 foiiowinh Buver'~ 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 gf Seiler's notice that it is unwilling or unable to remove an exception to title, Buyer may elect by notice to Seller to either: - - (i) (ii) terminate this Agreement, whereupon the Earnest Money shall be returned to Buver 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 Aureement. Seller shall pay any special assessments at closing. 4 I ! '04'200.'t a 2 ',I I ~.! 9. Closing. a) Closing shall occur within ten (10} business davs 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 auree, in writin,, to an extension 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 inclu~ling 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 pavable in the vear of closing shall be prorated by Seller and Buyer as of the closing date based upor~ a calendar y~ar. 11. 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 refunde~ to Buver ~nd this Agreement shall be terminated with neither party having any rights against the oth~er, 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 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: 5 11,0.~.2003a 1253 PM SELLER: City _of l~e_ v~ Hope Dan Donahue. Ci~, Manager 4401 Xvlon Avenue North New Hope, M~' 55428-4898 Facsimile No. ~ 763-53 ] -5174 with copy to: Jensen & Sondrall, P.A. 8525 Edinbrook Crossing, Suite 20l Brookl.vn Park. MN 554~3 Facsimile No.: 763-493-5193 BUYER: John F. Siebert JCS Development P.O. Box 636 Anoka, MN 55303 13941 Vinewood Lane Dayton, MN 55327 Facsimile No.' 763.421-0549, ~//~ ~,,,/~,/,'~',~ with copy to: Dexter J. Marston ~400I Retail Site Development Services 5775 Wayzata Blvd. Suite 700 Minneapolis, MN 55416 Facsimile No.: 763-37%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 right to seek specific performance and recover as damages fi.om 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 fi.om the MPCA that Buyer are not responsible for cleanup of hazardous materials that remain in the undisturbed soil and wat~ 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 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 Buver to terminate this Agreement In the event of such termination Buyer's £arnes: Money shall be returned. 16. Required Information. Buver is required to provide Seller with the folloxvin,.2, information at Buyer's sole expense in the VIC application: a) Site plan (at least current concept plan) and associated text describin,.2, 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 Buver 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 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 7 i 104;2003 u 12 ~,3 PM provision of an appropriate field technici~.-If provided reasonable notice by Buyers. Sellers shall be responsible for alt cost associated with the provision of the field technician Bm'ers shall be solely responsible for the proper disposal of any contaminants 1'9. Future Access and Utility Easements. Buver hereby acknox¥1edues and agrees that Buyer will be required to provide the City of New Hope access and utilit'~' easements in connection With Buyer's future development of the Property and as provided for by New Hope's Ci~x Code. regulations and past practices. Anv such easements shall be provided at no cost to the Citx 20. Assignment. Buyer may assign its rights hereunder once to NHC Enterpnse~,. LL(' ~ Minnesota limited liability company. IN WITNESS WHEREOF. the pames have executed this Agreement effective as of the lates~ date indicated below ("Effective Date") Seller: Economic Development Authority of the City of New Hope Its; Daniel J. Donahue Executive Director Date Buyer: JSC Development, Inc. By: /~ ~..._/'~_ ~~~ P .Anomey DJD 2 C~b, of Ne~v Hope~oo 1 lll~ - ~ of El [atetOO 11288-001 . JCS Pruchase~-eemeo! o do~- Date 8 I I 04 2003 of 12 ~13 EXHIBIT A Site Plan Showin.o ProperD~ 1 11 n,- Z n- O 42ND AVENUE NORTH 1056787.3 ~ R."';DSFrcy .doc) 9 -- -,,-- EXHIBIT B Legal Description · The West 163 feet of the following described parcel That part of Lot 5. "Auditor's SubdMsion Number 324. Hennepm Countx'. Minnesota" described as follows: Commencing at the point of intersection or' thc North line of Rockford Road and the East line of said Lot 5: thence North alon,.z, said East line a distance of 350 feet: thence West parallel with the North line Rockford Road a distance of 320.4 feet more or less. to a point 48.05 feet East the West line of said Lot 5. as measured at right anules thereto thence South parallel with the West line of said Lot 5 a distance of 3}0.0 feet to the North line of Rockford Road; thence Easterly along the North line of Rocktbrd Road a distance of 320.4 feet, more or less to the point of beginning 1o EXHIBIT C DECLARATION OF ENVIRONMENTAL RESTRICTIVE COVENANTS THIS DECLARATION is made this 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" 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. "C ' ' " ommissioner 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. o J .Covenants. "Covenants" mean all of the agreements, covenants, restrictions and easements contained in this instnunent. Declaration. "Declaration" means this instrument, including the definitions and recitals contained herein and the Exhibits attached hereto. EI. "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 o 10. Interested Parties. "Interested Parties" mean all parties having any ie,_,a] or equitable right, title or interest in the Property, or any part thereof and their'heirs. successors and assigns. ("Interested Parties" shall be broadix interpreted to include any and ali persons and entities that may in an,,, respect be bound by th:s Declaration.) MPCA. "MPCA" means the Minnesota Pollution Control Aeencv and includes its employees, agents, contractors and subcontractors and successors, including any successor governmental entit.v. 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 be The legal representative, heirs, successors, employees, agents, attorney or assigns of any person or entity otherwise qualifying as an Owner. "Owner" excludes: c. 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. Pronert~. "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. Letml 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 bo ii. Address. 7500 42nd Avenue North. New Hope. MN. iii. Property Identification Number. 17-118-21-22-000. Parcel 7. 11. Le£al Description. The West 95 feet of the East 195 fee~ of the South 350 feet of Lot 5, Auditor's Subdivision No. 324, Hermepin County, Minnesota. ii. Address. 7516 42nd Avenue North, New Hope, MN. iii. Properlx, 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 42n'~ Avenue North, New Hope, MN. iii. .Property 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 withnhe"N0rth line of Rockford Road a distance of 180 feet: thence South a distance of 250 feet to a point on the Non[~ line Rockford Road w'hich is a distance of 18(1 feet West of the pom~ of beginning: thence East along said north line a d~stance of IS() feet to thc point of beginning. The Restricted Area is illustrated in Exhibit 2 for reference. Tank. "Tank" means the under~ound tank that was adlacent to thc Buildm,.:, and was the source of the contamination. TCE. "TCE" means trichloroethylene. Fe Ao Do Ge RECITALS Current Ownership. The Economic Development Authority of the City of Neg' Hope is the current fee owner of the entire Property. Partial Prior Ownership. El was the fee owner of Parcel 7 of the Property from before 1984 until Parcel 7 was condenmed 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 ora 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 Stipula~__ion. In 1984 El entered into a Stipulation Agreement with the MPCA, which r~quired El to properly investigate and remediate the identified release. EI owned Parcel 7 at the time that it entered into the 1984 Stipulation Agreement. Investi ation and Clean U Generall . 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 Le installation of monitoring w~ll~, a soil vapor extraction system, an air sparge system, and a groundwater extraction and treatment system, including the following: The groundwater extraction system ,,vas 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 fi.om 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, tetrachloroethylene (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 Recover3, Act Facility Investigation and Corrective Measures Study (February 2001 and revised January, 2002), Results from May 2001 Push Probe 'Investigation of the Clay (June 2001 ), Remediation /llternatives 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, I.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 MPCA. 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 thc C~tx of New Hope makes the following Covenants as to the limitations, restriciions and us'es to which the Property may be put. The Covenants shall run with the Property as provided bx' law and shall be binding on all Interested Parties. The Property shall not be held. transferred. sold. conveyed, occupied, altered, or used in violation of ih, Covenants. Use Restrictions for the Entire Property'. The Economic Developmenl Authority of the City of New Hope hereby imposes the followin~ COvenants on the Property: The Property ma3, not be used for residential purposes of an,,' kind or for any use that may result in significant human contact witl~ 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. 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 fi.e. electrical fans will continuously draw air fi.om the collection system and discharge the air through roof vents). implementation work plan shall be reviewed A vapor collection system ' 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 faciliti-es-~e~, buildings, parking surfaces, etc.) shall be designed to minimize infiltration of precipitation runoff {rainwater. snox~' melt) by routing all such precipitation runoffto 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. f. New monitonng 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: 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, drillind, 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 constTuction activities. nl. 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 eo The Commissioner's approval ma,,' include conditions that the Commissioner deems reasonable and necessary to protect public health or the environment. f. The Commissioner's approval shall not be unreasonably v,'ithheld. Covenants Limited. The Covenants do not apply to the followine activitzes so long as such activities occur outside of the Restrict'ed Area and are not reasonablx likely to result in disturbances of or intrusions into the soil, ~ound v,'aters an~ 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 be de 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 o 10. 11. Reservation. Nothing conta'~ndd in this Declaration shall in any way prohibit. restrict, or limit the Cit.,,' of New Hope. its successors or assigns. £rom fully conveying, transferring, occupying, or using the Property for all pu ,rposes 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 unreasonablx withheld. Amendment of Declaration bx' 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 by 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; be 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: 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 ask 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 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. Upon receipt of the-'executed on~nal, the Owner shall be entitled to record the same. MPCA's Right of Entrv. The Economic Development Authority of thc C~x or' New Hope grants and conveys to the MPCA such nehts and'mteres~ m thc Property necessary, and convenient to enforce the Covenants. includin,.:, the right. upon reasonable notice to the then current Owner and at reasonable lim~s, to e~ter from time to time upon the Property to inspect and verify compliance with thc Covenants. Emereencv Procedures. The Economic Development Authority of thc City of New Hope covenants that the procedures set forth below shall be' foilov,,ed when an emergency requires immediate excavation of contaminated soil to repair utility lines or other infrastructure on the Property, or to respond to other t.xpes o'f emergencies (e.g., fires, floods) that mav result in an unacceptable ask of harm from exposure: ' Co de The Owner shall notify, the MPCA within 24 hours of obtainino 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 bv reference into all instruments conveying an interest in md<or right to use the Prop,ny (e.g. easements, mortgages, leases). o 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 laxv or in equity against any person(s) or entity(les) 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, 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 indemnify 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 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 insmnnent making the assignment. Page 11 ofll Attorneys' Fees. In the event any party 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 bx' the plaintif£ toeether witt~ court costs of such action, and the same shall, to the extent permitted by laxx, constitute a lien upon the properly of the defendant. Gender/Pluralitx,. 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 Authoritv 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 HENN~PIN ) The foregoing instrument was acknowledged before me this _ da), of ,2003, by W. Peter Enck 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. Public Stal) Notary Public Page 12 of 12 CITY OF NEW HOPE By: W. Peter Enck Its: Mavor By: Daniel J. Donahue Its: City Manager STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day o£ ,2003, by W. Peter Enek 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 Scad Notary Public Page 13 of 13 Accepted on behalf of Minnesota Pollution Control Agenc.x Pursuant to Minn. Stat. ¢ 115B. 17. sub& 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) / ~otar~ Public Drafted By: JENSEN & SONDRALIo P.A. 8525 Edmbrook Crossing, Suit~ 201 Brooklyn Park, MN 55443 (763) 424-8811 Page 14 of 14 1/8 Section Map Project Site (to scale) 7500, 7516, & 7528 42"~ Avenue ~r~IBIT 1 !' - 200~ ;I ~'F' PROJ I '° ~ '' ~ 14.0~" I 4~.64 . 7528 ~ 7516 ;d'dl~T CIr LOt C?) 7500 '- -'EXHIBIT 2 The Restricted Area is made up of the following two parceis. Parcel 1: The South 250 feet of the following described tract: That part of Lot 5. "Auditor's Subdivision Number 324. Hennepin Countx. Minnesota" described as follows: Commencine at the point of ~ntersecnon of tt~c North line of Rockford Road and the East line'of said Lot 5: thence Norti~ alon~ said East line a distance of 350 feet; thence West parallel with the North line Rockford Road a distance of 100 feet; thence South a distance of 35(} feet to point on the North line of Rockford Road which is distant 100 feet ~,'est of thc 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 ~AllOrney'.DJO'" City of Ne~, Hope~gg 1125'/- Dec:larw~on of Covenams. Conm~e'rcwl'~} { 1257-O02-Dc. cma~on of Co--ts Ex J Oo~ 1/8 Section Map Project Site (to scale) 7500, 7516, & 7528 42n~.Avenue I" ~ 200" ~F eROJ 1505 7528 7516 ' 7500 PR o P¢.S'~z~ -"EXHIBIT 3 General ' "contaminant type (i.e., DRO, VOCs, metals, etc.) VOCs Total volume of identified contaminated soil (cyds) 13,000 Total volume of Remedx I~AP Cleanup Goal identified ~ ~ i.e.. residential contaminated soil I SRVs. industrial to be remediated SRVs. etc.) (cyds) 0 tN/A General contaminant type (i.e., DRO, VOCs, metals, etc. VOCs VOCs Compound TCE DCE PCE Compound TCE DCE PCE Trans-DCE Chloride Affected aquifer (i.e., water table, deeper aquifers) Water table aquifer Lower aquifer Tier I 9o mg/~g 0.3 mt/kg Approximate dimensions / Reined) [Potassmm pcrmaneanate 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 m3ccuon and ex-s]tu soil vapor and groundwater treatment Potassmm permanganate mjectmn and ex-sttu soil vapor and groundwater treatment Average Concentration 100 mt/kg <0.5 mt/kg 5 rog/kg <0.3 rog/kg Maximum Concentration 1,900 mt/kg 5 mt/kg 80 mg/kg 0.5 mt/kg 30 ug/L 6 ug/L ug/L 1000 ug/L Average - - Maximum Concentration Concentration 5,000 ug/L ...... - ..... 350,000 ug/L I ugtL <1 ug/L 18 ug/L <1 ug/L '~-'-' -"'--'-'---------- 640 ug/L <1 ug/L <2 ug/L <1 ug/L EXHIBIT D FREY PURCHASE AGREEMENT -6- PURC_HLA.~E-AND SALE AGREEMENT This Purchase and Sale Agreement ("Agreement") is made bx' and between the ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF NEVC HOPE. MLNNESOTA. ("Seller"), and FREY DEVELOPMENT, INC. a Minnesota Corporation ("Buyer"). In consideration of the covenants and agreements of the respective parties as hereinafte~ 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 On~ Thousand Dollars ($1,000.00) will be submitted by Buyer to Seller on the Effectiv~ 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 conveved 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). 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, :~nd no person, firm or entity has any fight 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 chanoes to the Declaration of Covenants. ~ b) Seller shall cooperate with Buyer in its efforts to obtain the approval of all public or goverrmaental authorities as to all matters relating to zoning, subdivision, lot splits, special use permits access, or similar requirements for an eight unit town- office proj~-t ("Buyer's Intended Use"). "Town-office" shall mean, for purposes of this ~ent, 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 am' 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 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 rezonmg, variances, special use permits, subdivisions and any other governmental permits, consents and authorizations, which are necessary or desirable for Buyer's Inte4aded Use. including, without limitanon, final building permits. c) Obtaining financing under reasonable terms and conditions d) Buyer and Seller agreeing to terms and provisions of a document which will allou' 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 (42nd Avenue and Quebec Avenue), and. to the be~t of Seller's knowledge, no fact or condition exists which would result in the termination of access to and from the Property necessaD, for the operation of the Property. If any condition remains unsatisfied or has not been waived by Buyer one hundred twenty (120) davs after the Effective Date, this Agreement shall become nu/l and void and neither party s~all 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 expiration 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 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. 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 transachon 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 fi.om 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; description dimensions and location of the Property to the nearest monuments, streets and legal 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 Prope_m.' 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 a~ees to repair or restore any damages caused by Buyer or its employees, agents, or contractors during the course of ma'king such examinatiot~, 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. 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 Comment 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 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. 9. Closing. a) Closing shall occur within ten (10) business davs after all the conditions of the Agreement have been satisfied, and in no event later than one hundred thim, days after the Effective Date. unless both parties agree, in ~ziting. 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 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 dosing Seller will pay general real estate taxes payable in the year prior to the year of dosing 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 dosing fees. General real estate taxes payable in the year of closing shall be prorated by Seller and Buyer as of the dosing date based upon a calendar year. 11. 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 fights 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; (e) or upon transmission if successfully transmitted by facsimile. Any party shall 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: City of_Ne_~, Hope Dan Donahue, Ci~' Manager 4401 Xylon Avenue North New Hope, MN 55428-4898 Facsimile No.: 309-688-9099 with copy to: Jensen & Sondrall, 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 /t-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 all brokeraee chames incurred, if any, in connection with this transaction shall be paid by the party authorizin~g such Droker to act in its behaE. 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 right to seek specific performance and recover as damages fi.om 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 fi.om the MPCA that Buyer are not responsible for cleanup ofha~nrdous 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 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 i_n accordance with the provisions of this a~eement shall be grounds for Buyer to terminate this A~eemem. In the event of such termination Buyer's Earnest Money shall be returned. 16. Required Information. Buyer is required to provide Seller w/th the foilovdng 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 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 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 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 R~ponsibiliti~s. 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. IfBuym-s fail to provide Sellers with such reasonable notice than Buyers shall be responsible for providing the r~uired field technician and all costs and liabilities associated with provision of an appropriate field technician. 4f 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 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 bx' 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 A~eement 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. Its: _ ~--~ C. Date P:~Al~omey~)$D~2. ~ of New Ho1~e~9.112~ - Sale of El EXHIBIT A Site Plan .~ho~in2 Propert.~ RIVE 11 42ND AVENUE NORTH H~'67'~' ~ ~ RSDSFrcx .doc q _ ~EXHIBIT B Legal Description Ail of the following described parcel except for the West 163 feet thereof: 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 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 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 aiong the North line of Rockford Road a distance of 320.4 feet, more or less to the point of beginning. DECLARATION OF ENV/RONMENTAL RESTR/CTIVE COVENANTS THIS DECLARATION is made this_____ day of------__, 2003, by the Economic Development Authority of the City of New Hope, a Minnesota municipal corporation. DEF/N/T/ONS For the purpose of this Declaration, the following terms shall have the following meanings: 1. ~. "Building" means that building that was formerly present on the Property and was formerly used by Electronic Indust]'ies, /nc. as its place of business. The Building has since been demolished. 2. 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 MPC^. 3. Covenants. "Covenants" mean all of the agreements, covenants, restrictions and easements contained in this instrument. 4. Declaration. "Declaration" means this instrument, including the definitions and recitals contained herein and the Exhibits atts__ched hereto. 5. El. "El" means Electronic Industries, Inc. 6. Exhibits. "Exhibits" mean the exhibits to this Declaration and are as follows: Exhibit 1: l/g 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 Panics" 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 max' 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 reqmres 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. Lettal 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'''~ Avenue North. New Hope. MN. iii. .Properta' Identification Number. I7-115-2t-22-00~. 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, Hermepin Count)'. Minnesota. ii. Iii. Address. 7516 42n~ Avenue North, New Hope, MN. Provertv Identification Number. 17- I 1 $-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 42no Avenue North, New Hope, MN. iii. _Pronertv Identification Numbe_~. 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 pan 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 ad. jacent to the Build~ng and was the source of the contamination. TCE. "TCE" means tnchloroethylene. Be Ce RECITALS Current Ownership. The Economic Development Authority of the City of Nea' 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 .fa 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 bom 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. El 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 Ho Lo installation of monitorin~wc~ls~ 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 198.-. The soil vapor extraction system was installed in 1992. The air sparge system was installed in 1994. These efforts produced the following information: 4. Observed TCE levels have ranged from 5 ppm to 290,000 ppm. 5. Monitoring wells downgradient show ranges of near zero to 41 ppm. 6. An estimated total of 7,000 pounds of TCE has been removed to date through the combination of these remediation systems. .,Lower Aquifer lnvestieation, 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, tetrachloroethylene (PCE), dichloroethylene (DCE), trans-DCE, cis-DCE, vinyl chloride, toluene, and methylene chloride are al/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 ~4ct Facilin, Investigation and Corrective Measures Study (February 2001 and re~,ised January, 2002), Results from May 2001 Push Probe Investigation of the Clay (June 2001 ), Remediation ~4lternatives 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 I of the Corrective Measures Implementation Work Plan. City's Aereement with the MPC.4. 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' Nex~ 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 bx' laxv 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 mav not be used for residential purposes of anv kind or for any use that may result in significant human contact witl~ 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: do 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 o Permanent facilities-"l-e.g, buildings, parking surfaces, etc.} shall be designed to minimize infiltration of precipitation runoff I rainwater, snow melt) by routing all such precipitation runoff to storm sewers that cam' thc 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 pedesman 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: Prior to the commencement of any subgrade construction activities or other disturbances to subsurface soil in the Restricted Area Ce.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: ii. IlK The methods to be used and actions to taken to monitor thc disturbance and/or removal of contaminated soil. Plans for proper containment and disposal of any contaminated soil removed as part of the construction activities. 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 thc Commissioner. Requests for the Commissioner's approval must be made in writing to the Commissioner. be The Commissioner shall have 60 days after the receipt of a request to mail a response thereto. de 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 The Commissioner's approval max' include conditions that the Commissioner deems reasonable and necessary to protect public health or the environment. The Commissioner's approval shall not be unreasonably 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 reasonabix' likely to result in disturbances of or intrusions into the soil, ~ound waters and surface waters of the Restricted Area: a. Maintenance or repair of existing buildings or structures; bm 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: bo do 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-em'rent Owner and at reasonable times, from 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 from MPCA that the active vapor collection system use be discontinued. Page 8 of 8 10. 11. Reservation. Nothing coma'mid in this Declaration shall in an,,' way prohibit. restrict, or limit the City of New Hope. its successors or assi.,2ns, from fa/Iv conveying, transferring, occupying, or using the Property for a~t purposes no'! inconsistent with the Covenants. Duration of Declaration. This Declaration and the Covenants herein shall continue in perpetuity until terminated, modified, released arieL, or amended with the written consent of the Commissioner. such consent not to be unreasonab}x withheld. Amendment of Declaration by Owners. This Declaration and thc 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 by MPC.6. 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 c. 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: a. 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 b. 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. ~Ree.ordin of Owner Terminations and Amendments. In the event this Declaration ~s terrmnated, 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. a. 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 Upon receipt of the~'xecuted original, the Owner shall be entitled to record the same. 12. 13. MPCA's Rieht of Entry. The Economic Development Authority of the C~Ix' of New Hope grants and conveys to the MPCA such rights and interest in thc Property necessary and convenient to enforce the Covenants. including thc 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 thc Covenants. Emergency 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 o'f emergencies (e.g., fires, floods) that may result in an unacceptable risk of' harm fi.om 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. ill 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 lOoflO 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 Propen.~ ~e.g. easements, mortgages, leases I. e e e e 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 MPC,~. 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 laxv 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, such provision will be ineffective only to the extent of such invalidity, illegality, unenforeeability 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 from all Mechanic's Liens arising fi.om 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 assignment. Page 11 ofll Attorneys' Fees. In the event any pan5' 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 bx' the plaintiff, together with court costs of such action, and the same shall, to the extent pertained bx' laxx'. constitute a lien upon the property of the defendant. Gender/Plurality. Whenever the sin~mllar 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 Authoritv 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 Enek 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 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 Seal) 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 da,,' of · 2003, by W. Peter Enek and Daniel J. Donahue, the M~yor and'City Manager, respectively· of the City of New Hope· a Minnesota municipal corporation, on behalf of said municipal corporation. (Nmary Public Seal) Notary Public Page 13 of 13 Accepted on behalf of Minnesota Pollution Control Agenc.x' Pursuant to Minn. Stat. ~ 115B. 17. subd. 15 .}ames 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. (Nmary Public Seal) Notary Public Drafted By: JENSEN & SONDRALL, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763) 424-8811 I):uuk:nm~2. Ciq o( New M. i 12~7. DirMrllll id. f4Vlll~. ~. i i2S?.Q02__ ~ M CM~BMM rkdbwB 112~?.M)2-l)w~jlol of Co~ilU 04-27-05 PTNALdoc Page 14 of 14 1/8 Section Map Project Site (to scale) 7500, 7516, & 7528 42"~' Avenue l~rnl]~T? 1 I" - 200' )'F ~ROJ 1605 323 7528 , 7516 7500 -"EXHIBIT 2 The Restricted Area ns made up of the follow~ng txvo parcels: Parcel 1: The South 250 feet of the following described tract: That pan of Lot 5, "Auditor's Subdivision Number 324. Hennepin Countx, Minnesota" described as follows: Commencing at the point of mtersecuon of thc 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 linc o~f Rockford Road a distance of 100 feet; thence South a distance of 35(I feet to a point on the North line of Rockford Road which is distant 100 feet West of thc 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 ~[Iomev',DJD 2 Cny of New Hope's99 11257. Deciatalmn of Co~'~anls. Conm~rc~aix99 ] I.n$?.002.DcOat~mn oft2o~,t'nants Ex .~ doc ~/8 Section Map Project Site (to scale) 7500, 7516, & 7528 42~=.Avenue 200" ]'~' ~'ROJ 160~ 7528 7516 ,' 7500 46~. 64 . P/~ o Po.s'~ f~ - -"-EXHIBIT 3 General " contaminant type (i.e.. DRO, VOCs, metals, etc.) VOCs Total volume of identified contaminated soil (cyds) 13,000 Total volume of identified contaminated soil to be remediated (cyds) 0 Remedy N/A RAP Cleanup Goal ~ i.e.. residential SRVs. industrial SR%'s. etc.) General contaminant Affected aquifer ' Approximate dimensions Remedx 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. ft. Potassium permanganate Plume extends off-site inJecnon and ex-mm soil vapor and groundwater treatment VOCs Lower aquifer 48,000 sq. ft. Potassmm permanganate Plume extends off-site ~nJeenon and ex-tutu soil vapor and ~oundwater ~~~ treatmen~ Compound TCE DCE PCE Toluene Tier I 90 rog/kg 0.3 rog/kg 170 rog/kg 450 rog/kg Average Concentration 1 O0 mg&g <0.5 rog/kg 5 mg/kg <0.3 rog/kg TCE DCE PCE Trans-DCE Cis-DCE Compound 30 ug/L 6ug/L 7ug/L 1 O0 ug/L 70 ug/L Vinyl chloride Toluene 0.2 ug/L 50 ug/L 1000 ug/L Maximum Concentration 1,900 rog/kg 5 rog/kg 80 rog/kg 0.5 rog/kg Average Maximum Concentration Concentration 5,000 ug/L 350,000 ug/L 1 ug/L 33 ug/L <1 ug/L 5 ug/L <1 ug/L 18 ug/L <I ug/L 640 ug/L <1 ug/L 10 ug/L <2 ug/L 900 ug/L <1 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 JENSEN & SONDRALL, P.A. Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK. MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 * TELEFAX (763) 493-5193 e-mail law~;jensen-sondrall.com November 18, 2003 Ken Doresky Community Development Specialist City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 VIA E-MAIL ONLY TO kdoresI, T(~.c£new-hope. mn. us Re: 7500 - 7528 42~ Avenue North Our File No.: 99.11288 Dear Ken: This letter is regarding the following documents: 2. 3. 4. 5. Resolution Approving Declaration of Covenants (previously provided),' Declaration of Covenants (previously provided),' Resolution Approving Purchase Agreements with JCS and Frey (attached),' JCS Purchase Agreement (attached),. and Frey Purchase Agreement (attached). As you know, on November 10, 2003, the President and Commissioners of the Economic Development Authority in and for the City of New Hope passed a resolution authorizing a public hearing to be held on the sale of the above-reference land. Notice of that public hearing was duly published and, in anticipation of that public hearing at the November 24, 2003 EDA meeting, I have prepared the proposed resolutions. The first resolution provides for the recording of the Declaration of Covenants against the property being sold. As you know, these Declaration of Covenants are required by the Minnesota Pollution Control Agency. Also, please recall that we agreed to replace the exhibits that are not "to scale" with exhibits that are "to scale" prior to recording the Declaration of Covenants. The second resolution provides for the signing of the proposed Purchase Agreements by the President and Executive Director of the EDA. Please contact me with any questions or comments. Otherwise, I thank you for your attention to this matter. Very truly yours, ~Real Property Law Specialist Certified By The Minnesota State Bar Association 2Admitted in Iowa Douglas J. Debner, Asst. City Attorney City of New Hope JENSEN & SONDRALL, P.A. djd~jensen-~ondrall.cora After Hours Extension #137 Attachments (3) November 18, 2003 Page 2 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~DlD~2 C~'Y of New Hope~9.11288 - Sale of El Site\99-11288-016-Dormky Ltr doc DOUGLAS 2. DEBN£R~ GORDONL. SEt~SE~a GLEN A. NORTON STEV~N A. SO~RALL STACY A. WOODS JENSEN & SONDRALL, P.A. lttorneys ~It Law November 3, 2003 8S25 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK. -NIEVNESOTA 55443-1965 TELEPHONE (763)424-8811 · TELEFAX (763) 493-5193 e-mai/ iaw~'_'jensen-sondrall.com ..FZ4 E-M~4I£ ONZ Y TO RSDSUSF~AOL. C03¢ OF COUNSEL LORENS Q. BRYNE$'TA~ Dexter J. Marston g4001 Retail Site Development SerVices 5775 Wayzata Blvd. State 700 Minneapolis, M]q 55416 Re: 7500 - 7528 42nd Avenue North, New Hope, Minnesota Our File No.: 99.11288 Dear Mr. Marston: ~Rea! Property Law Special~t Cen~ed By The MUmesota State , Bar A.~oci~fion 'Admitted m io~ Please forgive me for including what may seem like excessive information m 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 f~t set of revisions to you, some errors were made, so a corrected first set of revisions to the Purchase Agreements is sent to you via e-mai/. "Pre-Application" meeting is held at City Hall with 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 briefly discussed at this 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 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 contamination 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/'real Purchase Agreements to you and Ken Doresk3'. The only exception being that the lirmted assignment provision to be included in the JCS Development. Inc. Purchase Agreement needed to be completed with the name of the entity .rCS 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 .rCS Purchase Agreement's assignmer;t provision. In addition to the Purchase Agreements, I have also attached the proposed fmal 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 of the Declaration of Covenants be replaced with "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 Declaration 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 akeady 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 CouneiUEDA. The Declaration of Covenants were not previously submitted it to the City CounciUEDA 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 10, 2003, 7:00 p.m. at City flail: The City Council/EDA meets. The EDA is expected to pass the resolution fLxing a November 24, 2003, public hearing on the sale of this property. .November 24~ 2003~ 7:00 p.m. at City Hall: The City CounciUEDA meets. The EDA will hold a public hearing on the sale of this property. If no objections are raised thereto the EDA will 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. office will then record the Declaration of Covenants against the property. Our Novhnber 3, 2003 Page 3 Please contact me with any questions or comments. 4~therwise, I thank you for your attenUon to this matter. Very Wuly yours, Douglas J'. Debner, Asst. City Attorney City of New Hope JENSEN & SONDRALL, P.A. djd~j~ns~n-sondrall.com After Hou~ Extension #137 Attachments cc: Kirk McDonald, Community Development Director, City of New Hope [via e-mail w/attachmentsJ Ken Doresk),, Community Development Specialist, City of New Hope [via e-mail w/attachments] Guy Johnson, Public Works Director, City of New Hope [via e-mail w attachments] Steven A. Sondrall, City Attorney, City of New Hope [via e-mail w attachments] Vince Vander Top, City Engineer, City of New Hope [via e-mail w/attachments] Douglas J'. Bergstrom, Environmental Consultant, City of New Hope [via e-mail w/attachments] P: ~momey~D,iDLT., City of New Hope~99. 112~8 - ~ of El .Site~9. 1121~010-Mamo~ 12r. doc ®1 Engineers & Architects Bonestroo, Rosene, Anderlik and Associates, Inc. is an Affirmative Action/Equal Opportunity Employer and Employee Owned Principals: Otto G Bon~stroo. P.E Marwn L. Sorvala. P.E G~enn Scnumcht. P.E Jer~ A. Bourclon P E Mark A Manson Senior. Consultants: RoDertW Rosene P.E dOSeDi~ 2. Anoerh~ ~= FR~cnar~ E Turne' P~E.= '~usan M Eoenm. C P A Associate Principals: ~e~th A Goroon D E Robert R Pteflerle ~ =J R~cnar~ Y, Fosze' P E Dav,C ~ LOSKO;a P~ hhcnaer - Rautman. Maland PE Miles B Jensen P f .Pmmp Grave; tsmael Mamne=. PE Tnomas A SvfKo PE Sneloo~ ~ Jonnso" Da~e A Grove P E TnomasA Rousnar. PE Rooe~J Dever) PE Offices: St PauJ. St CIouO. Rochester an3 W~llmar Websile: ~.Do~stroo.com TO: FROM: CC: DATE: SUBJECT: Ken Doresky Vince Vander Top Kirk McDonald, Mark Hanson, Guy Johnson April 28, 2003 7500-28 42"'~ 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 Lump Sum 4,900 SF ~ $4.00/SF $15,000 $5,000 $2,000 $22,000 $5,500 $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. was used based on past discussions. S4. O0 'S F 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 · 651-636.4600. Fax: 651-636-1311 EDA !V~mutes Regul~ Meenng CT1W OF NEW HOPE ~01 XYLON AVENL~ NORTH NEW HOPE,/vlIN-NESOTA 5542g Jun.- 23.2003 Cm.' Hall CALL TO ORDER ROLL CALL APPROVE NflAqJTES IMP. PROJECT 665 Item 4 EDA Minutes Page I President Enck calied the meenng of the Economic Development Amhont3, to order at 9:06 p.m Present: W. Peter Enck President Sharon Cassen, Co ...... is~ioner Don Collier, Co~,m,issioner Mary Oaan-Lenth, Commissioner Steve Sommer, Commissioner Motion was made by Commissioner Collier, seconded by Commissioner Sommer, to approve the Regular Meeting Minutes of May 27, 2003. Al] present voted m favor. Motion carried. President Enck introduced for discussion Item 4, Joint Development Proposal Concept Cousideration and Authorization to Prepare a Purchase Agreement for City-Owned Property at 7500-7528 42"" Avenue North (Improvement Project No. 665). Mr. Kirk McDomld, Director of Community Development, stated staff is requesting concept consideration and authorization to prepare a purchase agreement with the deve!?pers for a joint development proposal for the city-owned site at 7500-7528 42' Avenue North. The proposal is for two uses: a Culvers restaLh-'ant on the western portion of the site and three office condomi-ium buildings (eight separate ownership units) on the eastern portion of the site. Mr. McDonald updated the FDA on the proposal. The developers are offering a combined price of $$I0,000 for the site, or $4.62 per square foot. The developer's representative, RSDS, inifialJy proposed a brokerage fee of $40,000 to be paid by the city. At the EDA's request, the brokerage fee bas been eliminated from the proposal. He also reported that storm water ponding issues have been discussed with the developer. He ~ustrated the revised site plan. Cor-,-i~io~. Sorr~*r initiated discussion regarding the d/fference between the appraised price and the proposed purchase price. Mr. Ken Doresky, Commumly Development Spec/al/st, co~ented that the appraisal d/d not take into consideration the property's limitations as mandated by the MPCA. President Enck objected to the city bearing the costs for momtormg and mitigation plans relawxi to the contaminated soft cleanup. He noted Elect-omc I. ndusu-/es should be obligated ~o pay as they caused the contamination Mr. Dan Do,hue, C/~y Manager, explained that staffwould clarify tim roue. Mr. $ohn Sefl~ert, SCS Developmen~ was reco?!~-d. He noted it would I/kely take four months to close on the property and three months to complete conslruclion. Mr. McDomfld re. commended that a shared parldng arrangement be explored at the s/re between SCS Development and the Slm.sh/ne Factory Restaurant. The FDA expressed support for the joint development proposal, and directed staff to pursue a purchase agreement. June 23, 2003 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 11-24-03 EDA By: Kirk McDonald, Director of CD ? ~ Item No. & Ken Doresk¥, CD Specialist By: RESOLUTION APPROVING DECLARATION OF COVENANTS FOR 7500 - 7528 42ND AVENUE NORTH (IMPROVEMENT PROJECT NO. 665) ACTION REQUESTED Staff is requesting EDA consideration of the attached resolution approving Declaration of Environmental Restrictive Covenants for the City-owned property located at 7500-7528 42°'~ Avenue North prepared by the City Attorney. Due to the site contamination, the Minnesota Pollution Control Agency (MPCA) exercises control over the property and therefore are requiring the City to record this covenant against the property prior to its sale for redevelopment purposes. POLICY/PAST PRACTICF City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties withir the City. The EDA has been addressing the commercial portion of this goal through the City's man~ development activities, including preparing documents necessary to facilitate the redevelopment of City-owned property. 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. One more step in the redevelopment process is the approval of and recording of restrictive covenants for the property. Due to the site contamination, the Minnesota Pollution Control Agency (MPCA) exercises control over the property and therefore they are requiring the City to record this covenant against the property prior to its sale for redevelopment purposes. The City Attorney prepared the attached covenant and provided the following correspondence (attached): "Please find enclosed the proposed final version of the Declaration of Covenants for the above-referenced real estate. As you know, Electronic Industries, Inc polluted this site. Subsequent to that pollution, the City purchased this property and is currently in the process of redeveloping it. However, the Minnesota Pollution Control Agency (hereinafter "MPCA") currently 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 ~oses. I:\RFA\PLANNING\Electronic Industdes\Q - Restrictive Covenants.doc Request for Action Page 2 11-24-03 Pursuant to the guidelines provided by the MPCA, the City's Environmental Consultant, Doug Bergstrom, and myself 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 to us 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. I reviewed the changes required by the MPCA and prepared the enclosed proposed final Declaration of Covenants. The enclosed proposed final Declaration of Covenants incorporates all of the changes required by the MPCA. As a further precaution, the enclosed proposed final Declaration of Covenants were also submitted to and approved by the MPCA. Therefore, the proposed final Declaration of Covenants may be submitted to the City Council and/or the President and Commissioners of the City's Economic Development Authority for consideration and approval." The covenant restricts the use and imposes maintenance and reporting requirements. Any buyer will be required to adhere to the following guidelines (please see the attached document for additional detail): 1. Use Restrictions for the Entire Property. The Economic Development Authority of the City of New Hope hereby imposes the following Covenants on the Property: a) 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 the City of New Hope Zoning Code. b) All structures erected shall be constructed above grade (e.g., no basements, subgrade parking garages, etc.). c) 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. d) e) f) 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. Permanent facilities (e.g. buildings, parking surfaces, etc.) shall be designed to minimize infiltration of precipitation runoff (rainwater, snow melt) by routing all such precipitation runoff to storm sewers that carry 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 monitoring wells. 'Reque~;t for Action Page 3 11-24-03 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: a) Pdor 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. Plans for proper containment and disposal of any contaminated soil removed as part of the construction activities. Schedule for submitting a final report to the MPCA describing volume of soil removed, how it was disposed, and associated analytical data. 3. Commissioner Approval. Any action prohibited by the Covenants shall not occur without the prior approval of the Commissioner. a) Requests for the Commissioner's approval must be made in writing to the Commissioner. b) The Commissioner shall have 60 days after the receipt of a request to mail a response thereto. c) The Commissioner's response shall be in writing and shall approve or disapprove the request or require additional information be provided. d) A lack of response from the Commissioner shall not constitute approval by default or authorization to proceed with the requested activity. e) The Commissioner's approval may include conditions that the Commissioner deems reasonable and necessary to protect public health or the environment. f) The Commissioner's approval shall not be unreasonably withheld. Maintenance Requirement_~. Generally, steps taken to minimize the infiltration of water runoff and monitor treatment of on-site contaminants must be maintained. Specifically, the following is reqtJired: a) 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. b) On-site snow storage shall be permitted only on surfaces that convey runoff to storm sewers that discharge to an off-site location. c) Upon reasonable notice to the then-current Owner and at reasonable times, from time to time permission to enter upon the Property shall be granted to the MPCA, the City of New Hope, El, and/or their subcontractors, employees or agents for the purposes of sampling, inspection, construction, or decommissioning of MPCA required monitoring or treatment facilities. Request for Action Page 4 11-24-03 d) 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. As mandated by the MPCA, the covenant will prohibit any future residential uses. The MPCA has no concerns relating to the uses proposed by the current interested developers. The covenant lists future triggering activities that will need review and approval of the MPCA, as well as lists future triggering activities that will need review and approval of the RCRA group of the MPCA, and the City, prior to any construction activities. These activities include excavation and dewatering in certain areas, monitoring well sampling construction and access, active soil vapor venting under all buildings, maintenance of pavement cover, snow storage and direction of all runoff into storm sewers. Monitoring and mitigation plans will need to be submitted to MPCA when site plans are firm. The City will be responsible for development and implementation of these monitoring and mitigation plans. The City's Environmental Consultant has prepared a proposal for consideration at tonight's meeting. The City has been working for many years to initiate the environmental cleanup process and subsequent 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. For additional background information please refer to the EDA Request for Action relating to the purchase agreements. ATTACHMENTS · Resolution · Declaration of Environmental Restrictive Covenants · City Attorney Correspondence, 8-28-03 & 11-03-03 · Location Map & Proposed Site Plan · EDA Minutes, 6-23-03 CITY OF NEW HOPE EDA RESOLUTION NO. 03 - RESOLUTION APPROVING DECLARATION OF COVENANTS FOR 7500 - 7528 42nD AVENUE NORTH BE IT RESOLVED by the Economic Development Authority of the City of New Hope as follows: WHEREAS, the Economic Development Authority for the City of New Hope, Minnesota (EDA) owns that Property identified in the Declaration of Covenants attached hereto as Exhibit A; and WHEREAS, the Property has been polluted as described in the attached Exhibit A; and WHEREAS, the EDA is seeking to sell the Property for redevelopment; and WHEREAS, the Minnesota Pollution Control Agency (MPCA) requires restrictive covenants to be placed on the Property prior to its sale and development; and WHEREAS, the Declaration of Covenants attached hereto as Exhibit A has been submitted to and approved by the MPCA; and NOW, THEREFORE, BE IT RESOLVED THAT: The Declaration of Covenants has been reviewed by and is hereby approved by the Economic Development Authority for the City of New Hope, Minnesota. 0 The President and Executive Director of the Economic Development Authority are hereby authorized to sign and file for recording in the office of the Hennepin County Recorder the Declaration of Covenants attached hereto as Exhibit A. e The Economic Development Authority staff are hereby authorized to take all steps necessary to give effect to this Resolution. Adopted by the Economic Development Authority of the City of New Hope, Hennepin County, Minnesota this ~ day of November, 2003. W. Peter Enek, President Attest: Daniel J. Donahue, Executive Director P:~AtlomeykDJDX2. City of New Hopek99.11288 - Sale of El Sfle~99.11288-008-Resolmion Appr Declaration. doc 1 DECLARATION OF ENVIRONMENTAL RESTRICTIVE COVENANTS THIS DECLARATION is made this ~ 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 e Buildine. "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 MPCA. 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. El. "El" 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 1 e 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 i~e 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 be 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. .Prol~ertv. "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. Leeai 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 be ii. Address. 7500 42nd Avenue North, New Hope, MN. iii. Property Identification Number. 17-118-21-22-006. Parcel 7. 11. 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. ii. Address. 7516 42nd 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 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. Property. 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 Area. "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. Ae Bo 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 thc City of New Hope in 1993. The Final Certificate of the condemnation was filed in the Office of the Henncpin 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 Parcel 7 at the time that it entered into the 1984 Stipulation Agreement. Investigation 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 Le 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: 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/1. 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, tetrachloroethylene (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 Facility Investigation and Corrective Measures Study (February 2001 and revised January, 2002), Results from May 2001 Push Probe Investigation of the Clay (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 Aereement with the MPCA. 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 Panics. The Property shall not be held, transferred, sold, conveyed, occupied, altered, or used in violation of the 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: 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 the 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. 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 2J eJ Permanent facilities (e.g. buildings, parking surfaces, etc.) shall be designed to minimize infiltration of precipitation runoff (rainwater, snow melt) by routing all such precipitation runoff to storm sewers that carry, the runoff off-site. This shall be done to minimize recharge of subsurface 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: 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. 111. 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. be Ce Requests for the Commissioner's approval must be made in writing to the Commissioner. dj 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 may include conditions that the Commissioner deems reasonable and necessarv to protect public health or the environment. f. The Commissioner's approval shall not be unreasonably 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 Ce do 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, from time to time permission to enter upon the Property shall be granted to the MPCA, the City of New Hope, El, 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 t e 10. 11. 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 not 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 of the Commissioner, such consent not to be unreasonably withheld. Amendment of Declaration bv 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 by 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; bw 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: 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. Recording 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 thc MPCA with a self addressed return envelope. The MPCA shall have 60 days at~er 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 Authoritv 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 of emergencies (e.g., fires, floods) that may result in an unacceptable risk of harm from exposure: be do 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. The Owner shall prepare a plan to restore the Property (hereinafter "Restoration Plan") to a level of acceptable risk. ii. A copy of the Restoration Plan shall be submitted to the MPCA for approval prior to implementation of the plan. iii. The Owner shall implement the MPCA approved Restoration Plan. iv. The Owner shall submit a "Completion Report" to the MPCA at~er 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). 0 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 agreement of all Owners and the MPCA. Amendments shall not be effective until recorded. Enforcement. Enforcement of these Covenants shall be by any proceeding at law or in equity against any person(s) or entity(,es) 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. 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 ,fleeting 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 from all Mechanic's Liens arising from work for which the Owner is responsible. Assignment. 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 assignment. Page 11 ofll e Attorneys' Fees. In the event any party 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 law, 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 Enck 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 Seal) Notary Public Page 12 of 12 CITY OF NEW HOPE By: W. Peter Enck Its: Mayor By: Daniel J. Donahue Its: City Manager 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 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. 17, subd. 15 State of Minnesota ) )ss. County of Ramsey ) By James L. Warner Director, Majors and Remediation Division 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 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763) 424-8811 Page 14 of 14 Project Site (to scale) 7500, 7516, & 7528 42nd Avenue ~XIIIBIT 1 I' ' 200' OT (7) ""'" 'o'r 42~ Avn~r~ (ROCKFORD '" .... ~6.? NM'28'2t'[ EXHIBIT 2 The Restricted 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 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 ',Attomcy'~DJD'~ City of New Hope's99. ! 1257. Declaration of Covenants - Cormnerciag99 112$7-002-Declata~ion of Covenams Ex 3.doc 1/8 Section Map Pro~ect Site (to scaJe~ 7500, 7516, & 7528 42"C-Avenue = 200" IF PROJ 1606 '/ 7528 7516 ' 7500 (8) ..o, 42ND AVENUE ( ROCKFORD EXHIBIT 3 General I Total volume of Total volume of Remedy RAP Cleanup Goal 'contaminant type/ identified identified (i.e., residential (i.e., DRO, VOCs, contaminated soil contaminated soil SRVs. industrial metals, etc.) (cyds) to be remediated SRVs, etc.) (cyds) VOCs 13,000 0 I N/A N/A General contaminant Remedy type (i.e., DRO, VOCs, metals, etc. VOCs VOCs Compound TCE Affected aquifer (i.e., water table, deeper aquifers) Water table aquifer Lower aquifer 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 Potassium permanganate injection and ex-sim soil vapor and groundwater treatment Potassium permanganate injection and ex-situ soil vapor and groundwater treatment DCE PCE Toluene Tier I SRV (residential) 90 rog/kg 0.3 rog/kg 170 rog/kg 450 rog/kg Average Concentration 100 mg/kg <0.5 mg/kg 5 mg/kg <0.3 mg/kg Maximum Concentration 1,900 mg/kg 5 mg/kg 80 rog/kg 0.5 rog/kg Compound TCE DCE PCE Trans-DCE Cis-DCE Vinyl chloride Methylene Chloride Toluene 30 ug/L 6 ug/L 7 ug/L 1 O0 ug/L 70 ug/L 0.2 ug/L 50 ug/L Average Concentration 5,000 ug/L 1 ug/L <1 ug/L <1 ug/L <1 ug/L <1 ug/L <2 ug/L 1000 ug/L <1 ug/L P:~at°n~'ll~2' City of New Ho~. 112.$6. [l~flnration of C. mns~mskg9 112..n~.001 ~ . · -s.,~o~ of Co~mm~(D2).doc Maximum Concentration 350,000 ug/L 33 ug/L 5 ug/L 18 ug/L 640 ug/L I0 ug/L 900 ug/L 18 ug/L DOUGLAS J. DEBNER1 GORDON L. JENSEN~ 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. Attorneys At Law 8525 EDINBROOK CROSSING. STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193 e-mail law~jensen-sondrali.com August 28, 2003 Ken Doresky Community Development Specialist City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Via E-Mail to kdoreslq~cL new-hope, mn. us attd U.S. Mail Re: Declaration of Covenants for 7500 - 7528 42nd Avenue North, New Hope, Minnesota Our File No: 99.11257 Dear Ken: Please find enclosed the proposed final version of the Declaration of Covenants for the above- referenced real estate. As you know, Electronic Industries, Inc polluted this site. Subsequent to that pollution, the City purchased this property and is currently in the process of redeveloping it. However, the Minnesota Pollution Control Agency (hereinafter "MPCA") currently 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. Pursuant to the guidelines provided by the MPCA, the City's Environmental Consultant, Doug Bergstrom, and myself 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 to us 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. I reviewed the changes required by the MPCA and prepared the enclosed proposed final Declaration of Covenants. The enclosed proposed final Declaration of Covenants incorporates all of the changes required by the MPCA. As a further precaution, the enclosed proposed final Declaration of Covenants were also submitted to and approved by the MPCA. Therefore, the proposed final Declaration of Covenants may be submitted to the City Council and/or the President and Commissioners of the City's Economic Development Authority for consideration and approval. Please contact me with any questions or comments. Otherwise, I thank you for your attention to August 28, 2003 Page 2 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 Enclosure cc: Steven A. Sondrall, New Hope City Attorney (via e-mail only) P ~Attorney~DJD~,2. Cny of New Hope\99 11257. Decl,~atmn of Covenants - Commercial~99 11257-008-Doresky Lit doc DOUGLAS J. DEBNER2 GORDON L; JENSEN~ GLEN A. NORTON STEV~N A. SONDRALL STACY A. WOODS OF COUNSEL LORENS Q. BRYNESTAD ~Rea! Pmpert~ Law Specialist Certified By The Minnesota State Bar Association 2Admitted in Iowa JENSEN & SONDRALL, P.A. Attorneys ~It Law ~525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 * TEL£FAX (763) 493-5193 e-mail law~jensen-sondrall.com November 3, 2003 VIA E-M/IIL ONLY TO RSDSUS(~AOL. COM Dexter J. Marston g4001 Retail Site Development Services 5775 Wayzata Blvd. Suite 700 Minneapolis, MN 55416 Re: 7500 - 7528 42nd 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 fn'st set of revisions to you, some errors were made, so a corrected first set of revisions to the Purchase Agreements is sent to you via e-mail. "Pre-Application" meeting is held at City Hall with you and your clients. changes to the Purchase Agreements are discussed. At this meeting major 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 briefly discussed at this 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. Sentember 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 contamination present on the property. · Nove/hber 3, 2003 Page 2 September 2~ 20037 at approximately 1 p.m.: I e-mailed what are expected to be the final 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 &the entity JCS wishes to assign the Purchase Agreement to. I have added date and time fields to the footer of the attached proposed fmal Purchase Agreements to help us all verif3.' 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 Polluhon Control Agency. There is one exception, however. The MPCA insisted that Exhibit 1 and Exhibit 2 of the Declaration of Covenants be replaced with "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 Declaration 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 Council/EDA. The Declarahon of Covenants were not previously submitted it to the City Council/EDA 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 47 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 10, 20037 7:00 p.m. at City i:/all: The City Council/EDA meets. The EDA is expected to pass the resolution fixing a November 24, 2003, public hearing on the sale of this property. .November 247 20037 7:00 p.m. at CRV The City CounciVEDA meets. The EDA will hold a public hearing on the sale of this property. If no objections are raised thereto the EDA will 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. office will then record the Declaration of Covenants against the property. Our 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.com After Hours Extension # 137 Attachments CC: Kirk McDonald, Community Development Director, City of New Hope [via e-mail w/attachments] Ken Doresky, Community Development Specialist, City of New Hope [via e-mail w/attachments] Guy Johnson, Public Works Director, City of New Hope [via e-mail w attachments] Steven A. Sondrall, City Attorney, City of New Hope [via e-mail w attachments.] Vince Vander Top, City Engineer, City of New Hope {via e-mail w/attachments] Douglas J. Bergstrom, Environmental Consultant, City of New Hope [via e-mad w/attachments] P:~ltomey~DJDL2. 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Peter Enck President Sl~ron Cazsen, Commissioner Don Collier, Co ...... i~sioner Mary Ovm-Lenth, Commissioner Steve Sommcr, Co ..... i~sioner APPROVE M]]gUTES Motion was made by Commitsioner Collier, seconded bv Comnussioner Sommer. to approve the Regular Meeting Minutes of May 27, ~003. All present voted m favor. Motion carried. IMP. PROJECT 665 Item 4 EDA Minutes Page I President Enck mlroduced for discussion Item 4, Joint Development Proposal Concept Considerat/on and Authorization to Prepare a Purchase Agreement for City-Owned Property at 7500-7528 42''~ Avenue North (Improvement Project No. 66S). Mr. Kirk McDonald, Director of Conmmmty Development, stated staff is requesting concept considcn-ation and authorization to prepare a purctmse agreen~nt w/th the developm, s for a joint development proposal for the city-owned site at 7500-7528 42'~ Avenue North. The proposal is for two uses: a Culvers mstauram on thc western portion of thc site and three office condominium 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 $$10,000 for the site, or $4.62 per square foot. I'ne developer's representative, RSDS, in/tially proposed a brokerage fee of $40,000 to be pa/d by the city. At the EDA'$ request, the brokerage fee has been el/mimted from the proposal. He also reported that storm water ponding issues have been discussed w/th the developer. He illustrated the revised site plan. C~r~u/s~ioner Sornm~r imfiated discussion regard/rig the difference between the appr~ed price and the proposed purch~e price. Mr. Ken Doresky, Community Developn~m Special,t, con.,,ented that the appraisal d/d not take into consideration the propen3,'s limitations as mandated by the MPCA. Pr~idmt Fuck objected to the city bemmg the cost~ for momtonng and mitigation pla~ rehtm:l to the contaminated soft cleanup, lie noted Elecn-onic Industries ~hould be obligated to pay as they caused the contamination. Mr. Dan Domhne, City Mamger, explained that staff would clarify this issue. Mr. John -%fl~ert, JCS Development, w~ reco_vni-,.d. He noted it would I/kely take four months to close on the propert~ and three months to complete construction. Mr. McDonald recommended that a shared l~rk/ng m'rangem~t he explored at the ~,m beneeen ICg Development and the Sun.th/ne Factory Resmuram. The lEDA expressed support for the joint developn~nt proposal, and directed staff to !retinue a purchase agreem~mt. June 23, 2003 EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development ~" 11-24-03 EDA · , I Item No. By: Kirk McDonald, Director of CD 'r/~ & Ken Doresk¥, CD Specialist By: .,, 6 RESOLUTION APPROVING ENVIRONMENTAL MONITORING PROPOSAL FOR 7500 - 7528 42ND AVENUE NORTH PROPERTY (IMPROVEMENT PROJECT NO. 665) ACTION REQUESTED Staff is requesting EDA consideration of a resolution prepared by the City Attorney approving the attached environmental monitoring proposal from Diversified Environmental, the city's environmental consultant in the estimated amount of between $6,500 - $8,000. Due to the site contamination, the Minnesota Pollution Control Agency (MPCA) exercises control over the property and therefore are requiring certain monitoring activities as ~art of the restrictive covenant and redevelopment. On June 23, 2003, the EDA considered a revised development proposal for the site. The EDA questioned whether the City should be required to bear the cost of further environmental activities required by the MPCA and outlined in the restrictive covenant rather than Electronic Industries, the Responsible Party. Due to the fact that the city is now the owner of the property and the activities are related to redevelopment of the site, staff recommends that the EDA approve the attached environmental monitoring proposal prepared by Diversified Environmental. Diversified has the expertise necessary to complete the activities required by the MPCA. El was responsible for site cleanup. El is fulfilling their responsibilities for site cleanup. Additionally, the City Attorney has submitted the following correspondence relating to the matter: "Please find attached a proposed Resolution Approving Environmental Monitoring Proposal for 7500-7528 42'd Avenue North Property. As you know, the Minnesota Pollution Control Agency ("MPCA") requires the on site monitoring of any construction occurring on the above referenced land. The MPCA also requires preparation of a "contingency plan" for continued monitoring during construction and the disposal of any contaminated materials removed during construction. Additionally, the City is required by paragraph 15 of the Purchase Agreements to "apply for and obtain written assurance from the MPCA that Buyer[s] are not responsible for cleanup of hazardous materials that remain in the undisturbed soil and water of the Property (a "No Association" assurance letter)." In response to these requirements, the City's environmental consultant has provided the City with a "monitoring proposal". You have informed that you wish to bring that monitoring proposal before the EDA commissioners and asked me to provide you with a proposed resolution approving the monitoring proposal should the EDA commissioners deem it appropriate to do so. I believe the attached proposed Resolution # h\RFA\PLANNING\Electronic Industries\Q- Environmental Monitoring.doc Request for Action meets these requirements." Page 2 11-24-03 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 addressing the commercial portion of this goal through the City's many redevelopment activities. Over the past several years, the city's environmental consultant has been assisting staff with this site. BACKGROUND 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 at tonight's meeting to oversee the final environmental responsibilities prior and during redevelopment. 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. The monitoring proposal (attached) is as follows: "This memo is to make certain that the City is aware of some of the environmental activities and related costs that will or may be incurred as part of the Electronic Industries redevelopment. The following table summarizes currently expected costs: Task Relative certainty Estimated cost Comments of cost VIC Application Relatively certain $1,000-$1,500 Depends on developer information received and MPCA staff time billed On-site Estimated $3,000-$4,000 Depends on construction design and environmental monitoring contractor scheduling Development of Relatively certain $2,500 contingency plan Total estimated cost to City $6,500-$8,000 The information below describes such activities and expected costs, as best I can determine with the information available at this time: 1. Preparation of MPCA ViC application: The buyers of the properties understandably want written assurance from the MPCA that they are not responsible for the El site cleanup. This is obtained through application to the MPCA VIC (Voluntary Investigation and Cleanup) program, where a "No Association" assurance letter will be requested. The following information has been requested by MPCA to be included in the VIC application: · Site plan and associated text describing nature of business activities after redevelopment; · Grading plan; · Geotechnical drilling plan; · Subsurface utilities plan; · Construction time line; · Copy of Restrictive Covenant; and · Request for Action Page 3 11-24-03 Contingency plan, describing environmental monitoring activities during construction, plans to handle and dispose of any contaminated soil and/or groundwater encountered during construction, and plans to protect the health of contractors working at the site. Presumably, the first five items above will be prepared by the developer (and/or their subcontractors) at no cost to the City. The Restrictive Covenant has already been prepared, and is currently under review by MPCA and the Attorney General's office. The total estimated cost for preparing the VIC application by Diversified Environmental is estimated at approximately $500. MPCA staff time for processing the request is billed to the applicant, and these costs are expected to range between $500-$1,000. 2. On-site Environmental Monitoring During Construction: On-site monitoring of certain construction activities by an environmental professional will be required by both the Restrictive Covenant and the VIC program. This work will be performed by a trained environmental field technician from Braun Intertec under the general direction of Diversified Environmental. Braun Intertec was selected to perform this work based on their reputation and my past experience with them. The field technician will be on-site during grading activities near the contaminated area, during subsurface excavation of utilities, and during geotechnical drilling activities. Their work will involve monitoring excavated soils for the presence of contaminants primarily using a portable photoionization detector. If contaminated soils are detected, they will be stockpiled separately from clean soils for later disposal. At the conclusion of on-site monitoring activities, they will provide a letter report of their activities and observations. Daily costs for the field technician and equipment will be approximately $750/day; for planning purposes, I would anticipate a total of 4 to 5 days on-site. Their work will be governed by the attached proposal from Braun Intertec. 3. Development of Contingency Plan: MPCA has indicated that it will require development of a contingency plan for use during construction activities, which will address the details of on-site soil/ground water monitoring activities, segregation and disposal of any contaminated materials removed, and protection of contractor worker health during construction activities. This contingency plan can be developed by Diversified Environmental, and is anticipated to cost approximately $2,500. Other Environmental Costs to be Paid by Developers Other environmental costs that may or will be incurred include: 1. Disposal of Contaminated Soil/Ground Water: It is not now known whether contaminated soil and/or groundwater will be encountered during on-site construction activities; it hoped and possible that disposal of these materials will not be necessary. Should it become necessary that contaminated soil be excavated/removed, it is possible that MPCA will allow us to return the materials into the excavation, in which case disposal costs would not be incurred. MPCA is unlikely to allow return of soil to the excavation; therefore total costs for disposal can be significant. For example, excavated soil with elevated levels of TCE is typically put in 55-gallon drums and shipped out-of- state for disposal in a hazardous waste landfill at a cost of approximately $500-$1000 per drum plus permitting costs. Given that it takes approximately 4 drums to contain one cubic yard of soil, disposal costs can mount rapidly. Any contaminated water that may be removed during such operations as construction dewatering would also need to be disposed of properly, although it is possible that such water (if contaminant levels are relatively Iow) may be able to be properly disposed of at relatively small cost through MWCC sewage treatment. For containment of soil disposal costs, it will be important to work with the developer's engineering and construction contractors to minimize their work in contaminated areas through appropriate planning and design. Request for Action Page 4 11-24-03 2. Design and Installation of Active Vapor Collection Systems in Buildings: The Restrictive Covenant contains a requirement that all occupied buildings constructed at the site have active (powered) vapor collection systems that collect any residual organic vapors from under the floor slab and discharge such vapors above the roof. The MPCA VIC staff indicated that they wish to review and approve the engineering design of these systems. It is planned that these plans and specifications will be prepared and paid by the developers." For additional information please refer to the EDA Request for Actions relating to the purchase agreements and restrictive covenant. ATTACHMENTS · Resolution · City Attorney Correspondence · Environmental Monitoring Proposal · EDA Minutes, 6-23-03 CITY OF NEW HOPE EDA RESOLUTION NO. 03- RESOLUTION APPROVING ENVIRONMENTAL MONITORING PROPOSAL FOR 7500 - 7528 42nd AVENUE NORTH PROPERTY BE IT RESOLVED by the Economic Development Authority of the City of New Hope as follows: WHEREAS, the Economic Development Authority of the City of New Hope (hereafter "EDA") is the fee owner of certain real estate known as 7500-7528 42nd Avenue North, New Hope, (hereafter "Property") legally described on attached Exhibit A and visually represented on attached Exhibit B. WHEREAS, the Property was contaminated by a prior owner; and WHEREAS, due to the contamination by a prior owner the Minnesota Pollution Control Agency (hereinafter "MPCA") currently regulates and exercises control over the Property; and WHEREAS, the EDA has been approached with an offer to purchase the property by parties interested in constructing and operating businesses on the Property; and WHEREAS, the successful sale and redevelopment of the Property requires a "No Association" assurance letter from the MPCA to the prospective purchasers; and WHEREAS, the MPCA requires the submission of a "Voluntary Investigation and Cleanup" (hereinafter "VIC") application prior to the issuance of a Association" assurance letter; and "No WHEREAS, the MPCA requires on site environmental monitoring of any development occurring on the Property and the preparation of a contingency plan for continued monitoring of the contamination during construction and the segregation and disposal of any contaminated materials removed during construction; and WHEREAS, the EDA hereby determines the City's interests will be best served if the Property is redeveloped, the "monitoring proposal" for the Property is hereby approved. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference. That the Executive Director and EDA staff are authorized and directed to take all advisable and/or necessary actions to fulfill the monitoring proposals. -1- This resolution is hereby adopted by the EDA this 24th 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 Site\99-11288-019-reso approving Environmental Monitoring Proposal.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. 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. Address. 7500 42nd Avenue North, New Hope, MN. Property Identification Number. 17-118-21-22-006. 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. Address. 7516 42nd Avenue North, New Hope, MN. Property Identification Number. 17-118-21-22-0007. .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. Address. 7528 42"d 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 42nd Avenue -4- DOUGLAS J? DEBNERz GORDON L. JENSEN~ GLEN A. NORTON STEVEN A. SONDRALL STACY A. WOODS OF COUNSEL LORENS Q. BRYNESTAD JENSEN & SONDRALL, P.A. Attorneys ~It Law 8525 EDINBROOK CROSSING. STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193 e-mail law(~jensen-sond rail.corn November 18, 2003 Ken Doresky Community Development Specialist City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 VIA E-MAIL ONLY TO kdoreskl~f~'c£ new-hope, hr n. us Re: 7500 - 7528 42nd Avenue North Our File No.: 99.11288 Dear Ken: Please find attached a proposed Resolution Approving Environmental Monitoring Proposal for 7500-7528 42nd Avenue North ProperO,. As you know, the Minnesota Pollution Control Agency ("MPCA") requires the on site monitoring of any construction occurring on the above referenced land. The MPCA also requires preparation of a "contingency plan" for continued monitoring during construction and the disposal of any contaminated materials removed during construction. Additionally, the City is required by paragraph 15 of the Purchase Agreements to "apply for and obtain written assurance from the MPCA that Buyer[s] are not responsible for cleanup of hazardous materials that remain in the undisturbed soil and water of the Property (a "No Association" assurance letter)." In response to these requirements, the City's environmental consultant has provided the City with a momtonng proposal . You have informed that you wish to bring that monitoring proposal before the EDA commissioners and asked me to provide you with a proposed resolution approving the monitoring proposal should the EDA commissioners deem it appropriate to do so. I believe the attached proposed Resolution meets these requirements. Please contact me with any questions or comments. Very truly yours, ~Real Property Law Specialist Certified By The Minnesota State Bar Association :Admitted in Iowa Douglas J. Debner, Asst. City Attorney City of New Hope JENSEN & SONDRALI.. P.A. djd~jensen-sondrall.com After Hours Extension #137 Attachment cc: Steven A. Sondrall, New Hope City Attorney (via E-mail - w/attachment) Kirk McDonald, Community Development Director (via E-mail - w/attachmenO Valerie Leone, City Clerk (via e-mail - w/attachment) PAAttomey~DJD~2. City of New Hope~g9.11288 - Sale of E1 Site~,g9. I 1288-020-Do.sky Lit.doc DIVERSIFIED ENVIRONMENTAL, INC. Memorandum To: Kirk McDonald, Ken Doresky; City of New Hope From: Doug Bergstrom Date: 9/4//03 RE: Environmental Activities and Costs Related to Electronic Industries Site Redevelopment This memo is to make certain that the City is aware of some of the environmental activities and related costs that will or may be incurred as part of the Electronic Industries redevelopment. It is my understanding that the City is anticipating taking responsibility for some of these costs, and that they will be paid for out of City TIF receipts. The following table summarizes currently expected costs: Task Relative Estimated Comments certainty of cost cost VIC Application Relatively certain $1,000-$1,500 Depends on developer information received and MPCA staff time billed On-site Estimated $3,000-$4,000 Depends on construction design environmental and contractor scheduling monitoring Development Relatively certain $2,500 of contingency plan Total estimated $6,500-$8,000 cost to City The information below describes such activities and expected costs, as best I can determine with the information available at this time: 1. Preparation of MPCA VIC application: The buyers of the properties understandably want written assurance from the MPCA that they are not responsible for the El site cleanup. This is obtained through application to the MPCA VIC (Voluntary Investigation and Cleanup) program, where a "No AssociatiOn" assurance letter will be requested. The following information has been requested by MPCA to be included in the VIC application: · Site plan (at least current concept plan) and associated text describing nature of business activities after redevelopment; · Grading plan; · Geotechnical drilling plan; · Subsurface utilities plan; · Construction time line; Copy of Restrictive Covenant; and Contingency plan, describing environmental monitoring activities during construction, plans to handle and dispose of any contaminated soil and/or groundwater encountered during construction, and plans to protect the health of contractors working at the site. presumably, the first five items above will be prepared by the developer (and/or their subcontractors) at no cost to the City. The Restrictive Covenant has already been prepared, and is currently under review by MPCA and the Attorney General's office. The total estimated cost for preparing the VIC application by Diversified Environmental is estimated at approximately $500. MPCA staff time for processing the request is billed to the applicant, and these costs are expected to range between $500-$1,000. 2. On-site Environmental Monitoring During Construction: On-site monitoring of certain construction activities by an environmental professional will be required by both the Restrictive Covenant and the VIC program. This work will be performed by a trained environmental field technician from Braun Intertec under the general direction of Diversified Environmental. Braun Intertec was selected to perform this work based on their reputation and my past experience with them. The field technician will be on-site during grading activities near the contaminated area, during subsurface excavation of utilities, and during geotechnical drilling activities. Their work will involve monitoring excavated soils for the presence of contaminants primarily using a portable photoionization detector. If contaminated soils are detected, they will be stockpiled separately from clean soils for later disposal. At the conclusion of on-site monitoring activities, they will provide a letter report of their activities and observations. Daily costs for the field technician and equipment will be approximately $750/day; for planning purposes, I would anticipate a total of 4 to 5 days on-site. Their work will be governed by the attached proposal from Braun Intertec. 3. Development of Contingency Plan: MPCA has indicated that it will require development of a contingency plan for use during construction activities, which will address the details of on-site soil/ground water monitoring activities, segregation and disposal of any contaminated materials removed, and protection of contractor worker health during construction activities. This contingency plan can be developed by Diversified Environmental, and is anticipated to cost approximately $2,500. Other Environmental Costs to be Paid by Developers Other environmental costs that may or will be incurred include: 1. Disposal of Contaminated Soil/Ground Water: It is not now known whether contaminated soil and/or groundwater will be encountered during on-site construction activities; it hoped and possible that disposal of these materials will not be necessary. Should it become necessary that contaminated soil be excavated/removed, it is possible that MPCA will allow us to return the materials into the excavation, in which case disposal costs would not be incurred. MPCA is unlikely to allow return of soil to the excavation; therefore total costs for disposal can be significant. For example, excavated soil with elevated levels of TCE is typically put in 55-gallon drums and shipped out-of-state for disposal in a hazardous waste landfill at a cost of approximately $500-$1000 per drum plus permitting costs. Given that it takes approximately 4 drums to contain one cubic yard of soil, disposal costs can mount rapidly. Any contaminated water that may be removed during such operations as construction dewatering would also need to be disposed of properly, although it is possible that such water (if contaminant levels are relatively Iow) may be able to be properly disposed of at relatively small cost through MWCC sewage treatment. For containment of soil disposal costs, it will be important to work with the developer's engineering and construction contractors to minimize their work in contaminated areas through appropriate planning and design. 2. Design and Installation of Active Vapor Collection Systems in Buildings: The Restrictive Covenant contains a requirement that all occupied buildings constructed at the site have active (powered) vapor collection systems that collect any residual organic vapors from under the floor slab and discharge such vapors above the roof. The MPCA VIC staff indicated that they wish to review and approve the engineering design of these systems. It is planned that these plans and specifications will be prepared and paid by the developers. I hope this information is of use to the City in making financial and procedural plans for the redevelopment of the El site. If you have any questions or concerns, please contact me at your convenience. BRAUN INTERTEC Braun Intertec Corporation September 3, 2003 Proposal BL-03-00945 Mr. Kirk McDonald Director, Community Development City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Dear Mr. McDonald: Re: Proposal to Conduct Environmental Field Services, Electronic Industries Site Redevelopment, New Hope, Minnesota. At the request of Doug Bergstrom of Diversified Environmental, Inc., Braun Intertec Corporation (Braun Intertec) is submitting this proposal to conduct environmental field services related to the proposed redevelopment of the Electronic Industries Site in New Hope, Minnesota (the "site"). Our proposed Scope of Services, based on our discussions with Mr. Bergstrom, is described below. Braun Intertec understands its work will be directed by Mr. Bergstrom on behalf of the City of New Hope. We also understand that the fees for our services will be invoiced directly to the City of New Hope. Proposed Scope of Services The following scope of services is proposed for this project: Provide an environmental technician to conduct excavation oversight and soil characterization during earthwork activities such as geotechnical evaluation, geotechnical soil correction, soil excavation for utility installations and rough grading of the site. The technician will observe soil samples collected from the excavations for visible and incidental olfactory indications of contamination and screen soil samples periodically for total organic vapors using a photoionization detector (PID) and the headspace procedure recommended by the Minnesota Pollution Control Agency (MPCA). Soils that exhibit contaminant levels exceeding applicable MPCA approved levels will be segregated and characterized for prOPer disposal, treatment and/or reuse at the site. Collect and chemically analyze soil samples, at the direction of Mr. Bergstrom, to characterize excavated contaminated soil for proper disposal, treatment and/or reuse at the site, and to evaluate the remaining soils in the finished excavation bases and sidewalls for residual contamination. Prepare an implementation letter report that will describe our soil-screening methods and results, the results of any chemical analyses conducted and the disposition of contaminated soils encountered, if any. · Providing en£meering and envtronmental solutions since 1957 City of New Hope Proposal BL-03-00945 September 3, 2003 Page 2 Cost Estimates Braun Intertec will invoice the City of New Hope for the services described above on an hourlv and unit cost basis in accordance with our current fee schedule (January 1, 2003). Because we do not currently know the amount of time our technician will be required on site or the number of soil samples that will require chemical analyses, we cannot provide a total cost estimate at this time. Listed below are the hourly and unit rates we anticipate will be utilized for this project, based on the Scope of Services described above. If additional services are required, they too will be invoiced in accordance with our current fee schedule. Service Standard Rate Overtime Rate Field Technician 1II Professional Scientist Photoionization Detector Trip Charge for Vehicle VOC Analysis (soil) SVOC Analysis (soil) GRO Analysis (soil) DRO Analysis (soil) RCRA Metals (soil) $71 per hour $82 per hour $115 per hour -- $168 per day or $668 per week -- $35 per trip (including mileage) -- $150/sample -- $375/sample -- $40/sample -- $55/sample -- $155/sample -- ~erviee l~eserintinn l.umn ,qum Cost Estimate Prepare of Implementation Letter Report $8OO The cost estimates presented in this proposal are based on the assumption the proposal will be authorized within 30 days, and the project will be completed by the end of 2003. If the project is not authorized within 30 days, we reserve the right to resubmit the cost estimate. If the project cannot be completed within the proposed schedule due to circumstances beyond our control, we reserve the right to resubmit cost estimates for completion of tasks remaining. If Braun Intertec is authorized to conduct the proposed work, the City of New Hope will be invoiced on a monthly basis for the services performed under this proposed contract. Payment of services is due upon receipt of invoice with interest added to unpaid balances according to the attached General Conditions, which are a part of this contract. City of New Hope Proposal BL-03-00945 September 3, 2003 Page 3 If you have questions concerning the contents of this proposal, please call Mike Bratrud at (952) 995-2430 or Jon Carlson at (952) 995-2440. Sincerely, BRAUN INTERTEC CORPORATION Michael L. Bratmd, PG Associate Principal ..-? '. Jon A. Carlson, PG, CHMM Vice President Attachment: General Conditions (3-1-03) c: Mr. Douglas Bergstrom, Diversified Environmental, Inc. w~files\..XElectronics Industries-PO1 City of New Hope Proposal BL-03-00945 September 3, 2003 Page 4 Signature Page Re: Proposal to Conduct Environmental Field Services, Electronic Industries Site Redevelopment, New Hope, Minnesota Braun Intertec appreciates the opportunity to present this proposal to you. It is being presented in duplicate so if it is acceptable, the original can be retained for your records and the copy can be signed and returned to us by fax or U.S. Mail in its entirety, including the General Conditions, as written authorization to proceed. We will begin the project upon receipt of your authorization. The estimated cost presented in this proposal is based on the scope of services described and the assumption that the proposal will be authorized within 30 days and that the project will be completed within the proposed schedule. If the project is not authorized within 30 days, we may need to modify the proposal. If the project cannot be completed within the proposed schedule due to circumstances beyond our control, revision of the proposal may be required for completion of the remaining tasks. Payment for services is due upon receipt of invoice with interest added to unpaid in accordance with the attached General Conditions, which are a part of this proposed contract. Authorization to Proceed: Please proceed according to the described scope of services and General Conditions: Authorizer's Name (please print or type) Authorizer's Signature Authorizer's Title Authorizer's Firm Date General Conditions Our agreemenl ~'ith you consists of'these General £ ondltlOnS and [he accompanying written proposal or authorization Section 1: Our Responsibilities I.I \% '.~ill prox ide the professional sen ~ces spccJlically described In our v, rltten agreement '.~ith you. ~ou agree Ihal t~L' arc no: responsible lor prolessmnat ser~ ~ccs thai arc nm I&irly included m our specific undertaking. Unless othen~isc agreed m wrmng, all ot our record lindmg~, opinions, and recommendations will be provided to you m x~rmng. You agree not lo reix on oral findings. opmion~, or recommendalions ~'ithout our written approval. !.2 In perlbrming ()ur sen ICES. wc will use that degree ol care and skill ordinarilx exercised under similar c~rcumstances bx reputable members of' our prolbssion practicing in the same locality. If you direct us to dex late from our recommended' procedures. you agree to hold us harmless from all claims. damages, and expenses arising oul of'your direction. 1.3 ~e ~'. ill reference our lield observations and sampling to available relL'rence points, hut ~e ~ill not survey, set. or check tile accuracy of those points unless '.'.c accept that duty in writing, h is understood that locations of' field observations or sampling described in our report or shown on our sketches are based on information provided by others or estimates made by our personnel. You agree that such dimensions. depths, or elevations are approximations unless specifically stated otherwise in the report. You accept the inherent risk that samples or observations may not be representative ol'things not sampled or seen and. further, that site conditions may change over lime. 1.4 Our duties do not include supervising your contractors or commenting on. overseeing, or providing the means and methods of their work. unless we accept such duties in writing. We will not be responsible fbr the failure of your contractors to perform in accordance with their undertakings, and the providing of our services will not relieve others of their responsibilities to you or to others. 1.5 We will provide a health and safety program lbr our employees, but we will not be responsible lbr contractor, job, or site health or safety unless we accept that duty in writing. BRAUN INTERTEC 1.6 {)tlr esllmale~, ol conslrucllOH o, remedlall(m eoM> x~ i11 De ha~ed on InlOmL,- kn(n~ ledge. Such estimates arc ~11 exercise o; our prolc~slonaJ lud~nlcm and are not guaranteed or x~a~anlcd. Acluai cosl~ max xa~. ~ou should aliox~ a conllngenc5 m addlllOn lO qSlllllalct] COSl~ Section 2: ~our Responsibililie~ 2.1 't'ou ',,.ill prox id¢ acces,, to Ihe site hi thc' course III our work some SIIe damage h normal exen x~ hcII dUC care iN exercised. X~c will use reasonable care lo mimm~ze aamagc lo thc site X~.e haxe nol included thc cost of' restoration ol no~al damage In lhe eslimaled chargc~. X¥c x~ ill co~ccl no,al damage at your direction and expense. 2.2 You agree ltl prox ide u~. ~n a manner, with ]nlormatlon that you ha~c regarding buried Ol~lects al the sUc. Until have completed ()ur x'.ork, yc)u agree to provide us wdh all of your plans, changes plans, and ne~ inf0rmat~on as to Silo condJlion~. %e ~ill not be responsible locating buried ohiects at Ihe Sile unless ~ accept that dul.v in wrillng. You agree to hold us harmless lh}m all claims, damaues, losses,. and related expenses involving bu~'ied ObleCts of which you had kno~ ledge but did not limelv call t() our allemlOn or correct[~ on the plans you or olhers on your behalf furnished to us. 2.3 You will be responsible tbr thc cooperation of your employees and your contractors in observing all radiation salbtx standards after we notify you that radiogra'phlc or gamma ray equipment or another nuclear testing or measunng device will be used. 2.4 You will notify us of any know edge or suspicion of the presence of hazardous or dangerous materials in a sample provided to us. You agree lo provide us with inlbrmation in your possession or control relating Itl contamination at the work site. If we observe or suspect the presence of contaminants nol anticipated in our agreement, we ma). terminate our work without liability to you or to others, and we will be paid tbr t~e services we have provided. 2.5 Neither this agreement nor the providing of services will operate to make us an owner, operator, generator, transporter. treater, storer, or a disposal facility within the meaning of the Resource Conservalion IllClUOe lhl?, risk. 3on ;l~icc Io ihS[~.l ti- 2.7 %OU ;Igrec lo Ill,iLo required b? I;l~A. In thc c% till ) OLI th) IIOI Iht Site. )OU acknox~ {cd~c Ih;il II I~ 3 onr dnlx release of conlallllllanlh al the tile ~ OU agree lo hold us ha~lJchh and indennlllx u~ Iroln ciu~m~ relulcd to d~cJosurt, x made hx are rcqmrcd b3 law and from all el;mn, rclalcd to the i~lO~ling or hliJurc Io inlornl Ibc ox~ nee of Ihe dl~cox e~ ol comall~llKinl~ Section 3: Reporl,, and Records 3.1 duplicalc. ~&c '~'. ill return analT..l~caI (isis D,',I ses, en yearn and financial d;ll:l Ior lhree .x earn 3.2 All samples remaining tiller leSls arc conducted and field and klboralorx equlpnlenl thai cannot be adequately clealiSC~l ol comamlnanls arc and conllBtlC I(1 hc )OLJI propena. The3 x~ ill be d~scardcd or relurncd I. you. al our discrellon, unless ~vJlllln { 5 (lax > of Ibc report dale )ou gix e us xx rlllen d~re~lH)n lo SlOre or Iransler Ihe malerlids al your expense. 3.3 ()ur report.~, notes, calculallems, and other documenln and {}ur computer soliwarc and data are instrumenls of our service lo vou. and they remain our property bul are subi~cl to a license to you for your use m Ihe relilled pr01ec! Ibr the purposes disclosed lo us. YOU may not transfer our reports Io olhers or use them ibr a purpose 10r which they were not prepared wilhoul {}ur written approval, which will not be unreasonably withheld. Al your request, we will provide endorsemenls of our reports or letters of reliance, bul only iflhe recipients agree Io be bound by the terms of our agreement with you and only if we are paid the administrative t~2e stated in our then current Schedule of Charges. Prewtdtn£ e~l~tnee'rmg al~ e~lvtrtmnlt'tual so~utttnls since 19.57 3.4 If you do not pa5' for our services as agreed, we may retain all work not vet deln'ered to vou and you agree to return to us all of our v, ork that is m .','our possession or under your control "~Ou agree not IO use or rekv upon our ~ork tog an.',' purpose ~'` hatsoever until it is paid for in tbll. Section 4: Compensation 4. I '~'ou will pa.,,' lor services as agreed upon or according lo our then current Schedule of Charges if there is no other wrinen agreement as IO price. An eslrmated cost ~s not a firm figure. You agree to pay all sales taxes and other laxes based on your payment of our compensation. Our perlbrmance is subject to credit approval and payment of any specified retainer. 4.2 You will notify us of billing disputes within 15 days. You will pay all undisputed portions of invoices on receipt. You agree to pay interest on unpaid balances beginning 30 days alter invoice dates at the rate of 1.5% per month, but not lo exceed the maximum rate allowed by la~. 4.3 If you direct us to invoice another. we will do so, but you agree to be responsible tbr our compensation unless you provide us wilh lhat person's wrmen acceptance of all terms of our agreement and we agree to extend credit to that person and to release you. 4.4 You agree to compensate us for our reasonable fees and expenses il'be are required to respond to legal process arising out ola proceeding related lo the project and as to b~hich we are not a party. 4.5 If we are delayed by factors beyond our control, or if project conditions or the scope or amount of work change, or if changed labor union conditions result in increased costs, decreased efficiency, or delays, or if the standards or methods change, we will give you timely notice and we will receive an equitable adjustment of our compensation. If you and we do not reach agreement on such compensation within 30 days of our written application, we may terminate without liability to you or others. 4.6 If you fail to pay us within 60 days following invoice date. we may consider the dethult a total breach of our agreement and. at our option, terminate all of our duties without liability to you or to others. 4.7 in consideration of our providing insurance to cover claims made by you, you hereby waive any right of offset as to fees due US. Section 5: Disputes. Damage. and Risk Allocation 5.1 D~spute., bill be submmed tu Altematn c D~spute Resolution I ADR) as :~ condmon precedent lo hugatlon. Each ol u> will exercise good taith efforts to resoh c disputes through a mutually acceptable ADR procedure. Collecllons b'ill not be submltled to ADR. 5.2 '&e will not be liable for special. 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This increased fee is not the purchase of insurance. 5.5 If you do not pay us within 60 days of invoice date. or if you make a claim against us that is resolved in our favor, you agree to reimburse our expenses, including but not limited to attorney fees, staff time. expert witness fees, and other costs of collection or litigation. 5.6 The law ofthestate in which our servicing office is located will govern all dispute~. Each of us waives trial by jury on our own behalf and on behalf of our subcontractors and assigns. Section General Indemnificatmn 6.1 We '`~ ill mdemmtx and hoM harmless i~'om and against demand.,, damage, tbr ~ horn ~ c arc legall) responsible the comparallx c exlcm IllCx arc catl~e~J s~ horn you arc Icgall5 rcspons~bk. 6.2 'lo Ibc exlellt II 111;i,, bc i1¢¢c~,:,;ir\ h, indemnify cilher ol u,, under 3CCJlOn (1. I. and wc expressly balx C. m taxor of the other only. any Imnluml) or cxemp[ioll IrOlll Jiabihlv that eXlSls under anx ~orkcr compensation law 6.3 You agree to Indemnilx us agalnSl all loss and costs arising out ol claims of palent or copyright Inl?mgement as lo anx process or system that ~ specitied or selected by you or by others on )'our behalf. Section 7: Miseellanenu~ Provisions 7.1 We will prox idea certificate of insurance to you upon request. 7.2 This agreemenl ~s our enllrC agreement, h supersedes all prmr agreemenl.~. h may be modified onlx m a b'ntmg making specific reference Io Ihe provismn ntodified. 7.3 Neither ol US b'ill assign or translbr any interest, any claim, an)' cause of aCllon, or any right against the olher under this agreement. Neither of us will assign or otherwise transler or encumber an)' proceeds or expected proceeds or compensation from the project or proiect claims to any third person, whether direclly or as collateral or olherwise. 7.4 This agreement may be terminated early only in writing. We will receive an equitable adjustment of our compensation in the event of early termination. 7.5 h is customary lbr the consuham that provides design recommendations to bc retained to provide observation and related services during construction or remediation work. If we are not retained lo provide continuing services, you agree lo hold us harmless from all claims, losses, and expenses arising out of any interpretations, clarifications, substitutions, or modifications of our work provided by you or others. Revised 3- 1-03 CITY OF NEW HOPE a401 XY'LON AVENUE NORTH NEW HOPE, MINN'ESOTA 55428 EDA Minutes Regular Meeting June 23, 2003 Ci5' Hall CALL TO ORDER President Enck called the meeting of the Economic Development Authority to order at 9:06 p.m. ROLL CALL Present: W. Peter Encla President Sharon Cassen, Co .... ,i-~sioner Don Collier, Commi.~sioner Mary Gwm-Lenth, Coaimissioner Steve Sommer, Com,,,insioner APPROVE MI]WOTES Motion was made by Commissioner Collier, seconded by Commissioner Sommer, to approve the Regular Meeting Minutes of May 27, 2003. Ali present voted m favor. Motion carried. IMP. PROJECT 665 Item 4 EDA Minutes Page 1 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"" Avenue North (Improvement Project No. 665). Mr. Kirk McDomld, Director of Co~ty Development, stated staff is requesting concept consideration and authurmafion to prepare a purchase agreement with the developers for a joint development proposal for the city-owned site at 7500-7528 42'" Avenue North. The pwposal is for two uses: a Culvers restaurant on the western portion of the site and three office condominium buildings (eight separate ownership units) on the eastern portion of the site. Mr. McDonald updated the FDA 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 EDA's request, the brokerage fee has been elimin-ted from the proposal. He also reported that s~orm water pond/ng /ssues have been d/scussed with the developer. He/llusWated the rev/seal site phn. Commln~ioner Sorm~r in/fiated discuss/on regarding the d/fl'erence between the appraised pr/ce and the proposed purchase price. Mr. Ken Doresky, Conmmmty Development Spec/al/st, commented that the appraisal d/d not take rolo consideration the property's limlmfious as rrm-dated by the MPCA. Pres/dent Enck objected to the city bearing the costs for momtoring and mitigation pls,~ rehmi to :he contain/rated soft cleanup. He noted Eleclronic Induslr/es should be obl/ga~ed to pay as they caused the contamitmfion. Mr. Dan Donahue, C/ty Manager, explained that staffwould clarify this/ssue. Mr. John Sefoert, SCS Development, was recoimiv, d. He noted it would 1/kely take four months to close on the property and thee montl~ to complete coustmct/on. Mr. Mc. Domld recommended flint a shared parking anaugement be explored at the s/~e between SCS Development and the Suushiue Faot~y Remurant The FDA expressed support for the joint development proposal, and d/rected staff to pursue a purchase agreement. June 23, 2003 ' ' EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development (' 11-24-03 EDA By: Kirk McDonald, Director of CD "- 'i ' Item No. & Ken Doresk¥, CD Specialist By: ~ 7 RESOLUTION APPROVING PURCHASE ~,GREEMENT AND RELOCATION BENEFITS 7601 BASS LAKE ROAD (IMPROVEMENT PROJECT FILE 756) REQUESTED ACTION Staff recommends EDA consideration of a resolution prepared by the city attorney approving the purchase of property located at 7601 Bass Lake Road for it's appraised value of $220,000 and relocation estimate of $22,520. The purchase agreement is expected to be completed and signed by the property owner by the time of tonight's meeting. Krass Monroe, the city financial/redevelopment consultant recommends that the EDA now consider acquisitions of this type, instead of the City Council. As directed by the Council at the November 3, 2003, Work Session, staff will coordinate with Evergreen Land Services, the city's relocation consultant for payment of relocation benefits to all remaining sellers in the East Winnetka Livable Communities Area. The city's purchase offer will now consist of the appraised value and a relocation payment determined by the city's relocation consultant. The relocation estimate of $22,520 for this property is attached, but will be adjusted when the property owner moves and completes the purchase of another property (actual closing costs will be used proportionate to the purchase price of the subject property). 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 addressing the residential portion of this goal through the city's many housing activities, including acquiring properties from willing sellers in areas designated for redevelopment in the Comprehensive Plan. The city has been acquiring properties on a voluntary basis in the Winnetka/Bass Lake Road/Sumter Avenue area for potential future redevelopment purposes. Over the past several years, the city has acquireda total of seventeen (17) properties in this area. The city will be closing on 5500 Winnetka Ave. N. on December 8. The subject owner has indicated that they would like to complete this transaction ASAP. BACKGROUND On November 10, 2003, the Council authorized staff to negotiate the purchase of the subject property. As directed by the Council at the November 3~ Work Session, staff coordinated with Evergreen Land Services, the city's relocation consultant to prepare an estimate of relocation benefits. After the November 10 meeting, MOTION BY ~-/O~./ SECOND BY ,~? I:\RFA\PLANNING\Housin \7601\Q-7601 urchase a reement.doc Request for Action Page 2 '11-24-b3 staff requested that Evergreen prepare an estimation of relocation benefits for the subject property. Evergreen met with the owner and calculated the attached estimate of benefits ($22,520), dated November 13. On November 17, staff, the city attorney and the city's relocation consultant met with the owners to discuss the appraisal and relocation estimate. The owner was agreeable to the offer presented by the city. The owner indicated that they would like to complete the transaction ASAP. Staff feels that the city can close on the property in December. The city attorney submitted the following correspondence (attached) relating to the matter: "Please find enclosed for consideration at the November 24, 2003 Council meeting a proposed Resolution Approving Purchase Agreement and Relocation Benefits for 7601 Bass Lake Road. My legal assistant is working on the Purchase Agreement and I will provide that to you on Friday. It will be attached to this Resolution as Exhibit A. The Relocation analysis prepared by Evergreen Land Services, Inc. should be attached to this Resolution as Exhibit B. As indicated in the relocation analysis, the relocation benefit is estimated at $22,520.00. The actual amount will be determined after the moving expenses and actual closing costs for the Sellers' new property are determined. Evergreen will be responsible for determining this amount and processing the relocation payments accordingly. Please note that this is an Economic Development Authority acquisition and as a result, this Resolution needs to be on the EDA Agenda and not the City Council Agenda." On October 10, the Council authorized staff to obtain an appraisal of the subject property. Forsythe Appraisals, Inc, completed the appraisal and determined the property's value to be $220,000. The city received the attached correspondence dated September 29, 2003 from the property owner requesting that the city consider purchasing the subject property. The property is located within the Livable Communities East Winnetka Study Area and in Planning District 6. In 1998, the Council passed a resolution approving the city of New Hope Comprehensive Plan Update. In 1999, the Metropolitan Council approved the Comprehensive Plan Update. In the plan, the city was broken down into several planning districts. Planning District 6 is the district where the Winnetka, Bass Lake Road and Sumter properties that the city has been pursuing over the past few years are located. Planning District 6 is bordered by Winnetka Ave. N. to the west, C.P. Rail system to the south and Crystal to the east and north. The Comprehensive Plan targeted several areas in the city for redevelopment. Recommendations for Planning District 6 include the acquisition and redevelopment of sites located along the south side of Bass Lake Road, in the Bass Lake Road extension area and along the east side of Winnetka Ave. N. between 5340 Winnetka Ave. and Bass Lake Road. As referenced in the Comprehensive Plan Update, the recommendation to redevelop this area is intended to alleviate poor housing conditions, improve access onto Winnetka and Bass Lake Road and more fully utilize the land. In October 1999, the New Hope Economic Development Authority directed staff to contact residents along the east side of Winnetka Ave. N., between 5430 and 5550 to inquire if there was any interest in voluntary sales of these properties to the city. In March 2002, the Council directed staff to contact twenty (20) residents in Planning District 6 to again inquire if there was any interest in voluntary sales of these properties to the city. Since purchase solicitation letters were distributed, the city has purchased ten (10) of the seventeen (17) lots along the east side of Winnetka Ave. N. and seven (7) properties along Sumter Ave. N. and in the Bass Lake Road extension area (attached, please see a map of city-owned properties in Planning District 6). In 2000, the city received a Metropolitan Council Livable Communities Grant to study redevelopment opportunities in the roughly quarter-mile area encircling the intersection of Winnetka Ave. N. and Bass Lake Road. In 2001 and 2002, the Livable Communities Task Force studied redevelopment opportunities within the designated area. In 2002, the Council accepted the task force study. In February 2003, the Council selected ' Req~)est for Action Page 3 11-24-03 developers for each study area site based on proposals, except the west Winnetka site. Staff continues to coordinate with developers in the Livable Communities Area. The Hennepin County Estimated Market Value for the property is as follows: · Hennepin County o Taxes payable 2004, estimated market value: $160,000 ($50,500 Land & $109,500 Building) Staff contacted the Hennepin County Assessmbnt Department regarding the difference between the assessed value of $160,000 and the appraised value of $220,000. The assessor provided staff with the estimated market value for taxes payable 2004 (assessment year 2003). The information available on Hennepin County's web site is for taxes payable 2003 (assessment year 2002). Per the attached e-mail, the assessor provided the following comments, "In regards to the value of the property located at 7601 Bass Lake Rd, the appraisal done by Gregory V. Callahan for $220,000 was completed on October 20, 2003 and is current as of that date. This is a current full market value appraisal based on current sales activity. The 2003 assessed market value for property tax purposes is $160,000 and is assessed as of January 2"d 2003. The county uses a target ratio of 95% of value as indicated by the sales that occurred during our sales study period. For the 2003 assessment our sales study period was from October 1st, 2001 to September 30th 2002. Therefore some of the sales used to set the market value for the 2003 assessment are now two years old." On April 14, 2003, the New Hope City Council directed staff to consider utilizing services of a firm other than the appraisal firm that had been completing many residential property appraisals for the city, due to several discrepancies in previous appraisals. On May 22, staff and the city attorney met with Forsythe Appraisals, Inc., to discuss possible appraisal services. Forsythe Appraisals has considerable experience in completing appraisals and acquisition activities for governmental agencies in redevelopment areas. At this time, staff will utilize the services of Forsythe Appraisals, Inc. In the past, Forsythe has completed appraisals for the city and performed in a responsible manner. If a purchase of the property is completed, staff would attempt to sell the home to a house mover, demolish the foundation and restore the site to a maintainable condition. The property would then be landbanked in preparation for future redevelopment of the area. Up to this point, staff has required that wells and buried heating oil tanks (if existing) be sealed and/or removed at the expense of the seller. Now that the city is paying relocation expenses, the city attorney and relocation consultant are reviewing this past requirement. Staff recommends EDA approval of the attached resolution. FUNDING The subject property is located in an area where TIF funds can be expended. TIF funds would be used for property acquisition and associated holding costs. During the 2003 State Legislative Special Session, the city's TIF special legislation was passed. Staff is coordinating with Krass Monroe, the city's financial consultant to facilitate the necessary steps for implementation. ATrACHMENTS · Resolution · City Attorney Correspondence, 11-20-03 · Relocation Estimate · Appraisal · Property Owner Correspondence, 9-29-03 · Location Map, Topographic Map & Planning District 6 - City Ownership Map · Hennepin County Parcel Data (Taxes Payable 2003) · Hennepin County Parcel Data (Taxes Payable 2004) · Hennepin County Assessor Correspondence, 11-5-03 · Comprehensive Plan References - Planning District 6 EDA RESOLUTION RESOLUTION NO. 03 - RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 7601 BASS LAKE ROAD BE IT RESOLVED, by the Board of the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, the New Hope City staff has been in contact with Timothy J. White and Lois K. White ("Owners"), owners of certain real estate known as 7601 Bass Lake Road (the "Property"); and WHEREAS, appraisers hired by the New Hope EDA valued the Property at $220,000.00 as of October 20, 2003; and WHEREAS, Owners are willing to sell the Property to the EDA for the sum of $220,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, the EDA herby approves the agreement with the understanding relocation assistance benefits will be paid to Owners as required by both State and Federal law; and WHEREAS, the City Staff has employed the service of Evergreen Land Services Company to provide the required relocation assistance; and WHEREAS, Evergreen has prepared a relocation analysis for the Owners herein and have determined the estimated relocation benefit payable to Owners is $22,520.00 (analysis attached as Exhibit B). The final actual costs for the relocation benefits Owners are entitled to will be determined when Owners actual closing costs and moving expenses are determined by Evergreen Land Services Company; and WHEREAS, it is in the best interest of the EDA to purchase the Property from Timothy J. White and Lois K. White for the sum of $220,000.00, with other terms and conditions as set forth in the Purchase Agreement and to pay the required relocation benefits. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of New Hope as follows: 1. The above recitals are incorporated herein by reference. The purchase of the Property by the City from Timothy J. White and Lois K. White for the sum of $220,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved. e The relocation benefit estimated to be $22,520.00 is hereby approved with the final amount to be determined by Evergreen Land Services Company after actual moving costs and closing costs are determined by Evergreen. The President, Executive Director and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the purchase of the Property in accordance with said Purchase Agreement. Dated the 24th day of November, 2003. W. Peter Enck, Mayor Attest: Valerie Leone, City Clerk P:L~,ttomey\Cnh Resolutions\CNH99.11295-001 -Reso Approv PA.doc DOUGLAS J..DEBNER2 GORDON L. JENSEN~ GLEN A. NORTON' STEVEN A. SONDRALL STACY A. WOODS OF COUNSEL LORENS Q. BRYNESTAD JENSEN & SONDRALL, P.A. Attorneys ~It Law ~525 EDINBROOK CROSSING. STE. 201 BROOKLYN PARK, MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193 e-mail law~jensen-sondrall.com November 20, 2003 VIA E-MAIL TO kdoreskv(~ci.new-hope.mn.us AND VIA FACSIMILE TO (763) 531-5136 Ken Doresky Community Development Specialist City &New Hope 4401 Xylon Avenue North New Hope, MN 55428 Re: Acquisition of 7601 Bass Lake Road/Timothy J. White and Lois K. White, Sellers Our File No. 99.11295 Dear Ken: Please find enclosed for consideration at the November 24, 2003 Council meeting a proposed Resolution Approving Purchase Agreement and Relocation Benefits for 7601 Bass Lake Road. My legal assistant is working on the Purchase Agreement and I will provide that to you on Friday. It will be attached to this Resolution as Exhibit A. The Relocation analysis prepared by Evergreen Land Services, Inc. should be attached to this Resolution as Exhibit B. As indicated in the relocation analysis, the relocation benefit is estimated at $22,520.00. The actual amount will be determined after the moving expenses and actual closing costs for the Sellers' new property are determined. Evergreen will be responsible for determining this amount and processing the relocation payments accordingly. Please note that this is an Economic Development Authority acquisition and as a result, this Resolution needs to be on the EDA Agenda and not the City Council Agenda. Contact me if you have any questions or comments regarding the Resolution. Very truly yours, ~Real Property Law Specialist Certified By The Minnesota State Bar Association 2Admitted in Iowa Steven A. Sondrall, City Attorney, City of New Hope JENSEN & SONDRALL, P.A. sas~jensen -sondrall.com After Hours Extension #147 Enclosure cc: Valerie Leone, City Clerk (w/enc.) P: L~.t~omey~SAS~Lett ens\CNH 99. I 1295-001 -Ken I. tr. doc PRICE DIFFERENTIAL PAYMENT / ANALYSIS OF COMPARABLE PROPERTIES I Subject Comparable Comparable Comparable ! Property #1 i Property #2 Property #3 Price (apl)raised) S220,000 $235.070 $249.70C S220.370 Address 4809 Flag Avenue 17335 Co. Rd 24 8117 ,Xenia Ave. City 7601 Bass Lake Rd. New Hope 11-12-03 Date of Inspection Style Construction Actual Age/Eft. Age Rambler Average 1953 New Hope Rambler Above Average 1967 Condition EGF Average Above Average No. of Units 1 1 No. of Rooms 10 11 No. of Bedrooms Bedrooms Required No. of Baths 2.5 2,930 Full - finished Bedroom, shop, ~ bath, amusement room Total Area (Sq. Ft.) Basement Bsmt- Types of Fin. Rms. Plymouth Brooklvn Park Rambler Rambler Average , Above Average 1962 1967 4!4 2.75 2.5 2,522 Full - finished Heat/Cooling Gas FA / CA Fireplaces Two One 3 - sheds 3 - detached .65 Acre (28,493 sq. ft) Suburban NA NA NA Other Finished Space Garage NA Lot Size Neighborhood EIB Schools Public Transportation Church Place of Employment Water 1. Type 2. Adequate Sewer 1. Type 2. Adequate Other Comments: * These amounts factored in to the comparable price Comparable Price Project Price Difference Estimated Moving Expenses Estimated Closing Costs Total Benefit Bedroom, Shop, Amusement Room (2) Nat Gas FA / None 2 - attached .24 Acre (10,304 sq ft) , Suburban Average Above Average 1 t 8 7 2.710 Full - finished 2.5 2.022 Full 1. City 2. Yes 1. City 2. Yes Drain Tiled, Sump Pump Family Room, Bedroom Hot Water / None Nat Gas FA / CA Two Two 2 - attached I 2 - attached .9 Acre (29,265.5 sq Suburban Suburban NA NA NA NA NA NA NA NA NA NA NA NA 1. City 2. Yes 1. City 2. Yes 1. City 2. Yes 1. City 2. Yes + $2,500 - garage - $2,350 - above ground finished + $5,020 - below ground finished + $10,000 - acreage + $2,000 - fireplace $235,070 $220,000 $15,070 $2,95O $4,50O $22,520 1. City 2. Yes 1. City 2. Yes + $2,500 - garage + $7,150 - above ground finished + $6,220 - below ground finished' + $2,500 - gauge + $950 - above ground finished + $1,820 - below ground finished -$7,000-acreage + $2,000-deck R/WAgent. Kar Klassen Date 11-13-03 Property Full Report Page 1 of o Single Family Residential Additional !~notos and su0plements may t~e attac~ecl. If so. you may access them by clicking on the ai~ove l~hoto. Status: Active Style: (SF) One Story Construction Status: Previously Owned Year Built: 1967 Bedrooms: 4 Total Bath: 3 Garage: 0 Lot Size: E79x128x82x128 Acres: 0 Foundation S~ze: 1722 AbvGrd Fin Sqft: 1722 BelGrd Fin Sqft: 800 Total Fin Sqft: 2522 List Date: 111612003 Recd l~y MLS: 111612003 Market Time: 8 List Price: $ 219,900 List #: 2209035 Cng L~st Pnce: $ 219,900 Mar~ Page: 91 MLS Area -~:362 Map Coord: C2 Sec Area F~re ITAX INFORMATION [Tax wlassess: $ 0 iAssess Ba!:$ 0 Assess Penal: Unknown Homestead: Yes Property ID: 071182132001_8 4809 Flag Avenue N NH - New Hope, Minnesota 55428 tGENERAL PROPERTY INFORMATION Directions: 169 N to 49th East to Flag South to home Legal: Lot 010 Block 006 Zubecks Rolling Hills Addn County: HENN. Hennepin Lake/Waterfront: School District Info: 763-504-8000, 281 - Robbinsdale, School District #281 Complex/Development/Subdivision: Restrictions/Covenants: Lot Descnpt~on: Association Fee: $ 0 Frequency: NIA Fee Includes: NIA Accessibility: None Zoning: Residential-Single Road Frontage: Lake Name: Common Wall: No Approved Financing: IREMARKS Agent Remarks: Public Remarks: Must seel Lovely hm for faro that enjoys spacious living. 4BRs-3BAs, 2500+ sf + 900 sf cedar Deck w/blt in natural gas grill. Wkshp w/radial arm & tablesaw incl. Kit appl all less than 5yrs old. Great Icc close to schools, pks. Decor make it your castle. STRUCTURE INFORMATION Room ILevel IDimen IRoom Descrimion iLevei Living Rrn IMAIN 1'16x13 IWork Shop ILOWER DiningRm JMAIN Illxll IAm,,sementRoom ILOWER FamiyRm IMAIN 121"16 [~musementRoom ILOWER K c,er, J'?mLJ_ L Bedroom', __.J.MA,N Bedroom2 J?^ N l_ Bedroom3 _.J.MA,N J? t _J I_ Bedroom4 ILOWER 109x09 Total Baths: 3 Full: 1 3/4:2 1/2:0 1/4:0 Bath Characteristics: tDimen IMisc 1.22x09 IHeat: Forced Air 1.20x13 IFueh Natural Gas 1.1...7x13 lair Condition,ng: None J IWater: City Water. Connected J.._.__~,Sewer: City Sewer. Connected J...__._~ e ~,a,,s: Garage Stalls 0 L.__~ Other Parking: Dining Room: Separate/Formal Dining Room Family Room: Fireplaces: 1 Fireplace Characteristics: Family Room Appliances: Range, Microwave, Dishwasher, Refrigerator, Washer, Dryer Basement: Full, Finished (Livable), Drain Tiled, Sump Pump, Daylight/Lookout Windows, Egress Windows Exterior: Metal/Vinyl Fencing: Roof: Amenities - Shared: Amenities - Unit: Deck http://n~rthstarm~s~c~m/SearchDetai~/Scripts/PrtAgtFu~/PrtAgtFu~~asp?prp=M~s&where=.+~~~ 11/13/2003 Property Full Report Page 2 of 0 Parking Characteristics: Attached Garage, Garage Door Opener Snared Rooms: Special Search: Second Unit: iMISCELLANEOUS Topography: Agrmulturat Water OutDul!a~ngs Tillable Acres: Pasture Acres: Wooded Acres Farm Type: Soil Type: Crop Type IIf Under Construction: jLot Price: $ Proj ComD Date ' ILow Price Range' IH~gh Price Range jMode! Located'* IModel Phone: jModel Hours ODer- Auction: No Aucuoneer L,cense 77:0 Auction Type: NIA Buyer Broker Comp: 2.7% Facilitator Comp: 0% Cooperating Broker Comp Sub Agent: 0% Financial Remarks: Sellers Terms: Existing Mortgage Information Existing Financing: Loan Orig Date: Ex~stmg Mortgage Arnount. Iht Rate: Principal/Iht: Secondary Fin?: List #: 2209035 Listing Agent: Nathan F Shaw Listing Office: Coldwell Banker Burnet Prepared by:Stuart B Storm Variable Rate: No TyDe: Exclusive Right To Sell Address: 4809 Flag Avenue___N NH - New Hope, Minnesota 55428 Nathan F Shaw 612-701-4469 Appt Phone: 763-550-7608 Office Phone: 763-559-4990 Information Deemed Refiable But Not Guaranteed © 2001-2003 Regional MLS of Minn., Inc. All Rights Reserved http://n~rthstarm~s~c~m/S~archDetai~/Scripts/PrtAgtFu~/PrtAgtFu~~asp?prp=M~s&wher~~+~~~ 11/l 3/2003 Property Full Report Page 5 of 6 Single Family Residential Additional ~hotos ~nd supplements may ~e attached. you may access them by clicking on the above photo 17335 Co Rd 24 PLYM - Plymouth, Minnesota 55447 Status: Active Sty!e: (SF) One Story Construction Status: Previously Owned Year Built: 1962 Bedrooms: 4 Total Bath: 3 List Price: $ 249,700 List ;~: 2197622 Garage: 2 Lot Size: N182 E150 S192 W163 Acres: 0.9 Foundation Size: 1590 AbvGrd Fin Sc!fl: 1590 BelGrd Fin Sqft: 1120 Total Fm Sqft: 2710 List Date: 101212003 Recd by MLS: 101212003 Market Time: 43 Ong List Pnce: $ 249,700 Map Page: 90 MLS Area #:374 Map Coord: C4 Sec Area' Fire # Tax Year: 2003 Tax Amt: $ 2,172 Tax w/assess: $ 2,448 Assess Bahs 0 Assess Pend: No Homestead: Yes Property ID: 20:11822230_0_15 GENERAL PROPERTY INFORMATION 1 Directions: South side of Co Rd 24 between Hwy 101N and Hwy 55 I Legal: Lengthy County: HENN - Hennepin Lake/Waterfront: School District Info: 763-745-5000, 284 - Wayzata, School District #284 Complex/Development/Subdivision: Restrictions/Covenants: Lot Description: Irregular Lot Association Fee: $ 0 Frequency: NIA Fee Includes: NIA Accessibility: None Zoning: Residential-Single Road Frontage: Lake Name: Common Wall: No Approved Financing: IREMARKS Agent Remarks: Public Remarks: Walkout Rambler on .9 wooded acres. Spacious rooms. Hardwood floors in 3 Bedrooms. 2 brick Fireplaces. Finished walkout Family Rm, 4th Bedroom & Bath. Wayzata schools. Needs cosmetic work inside and out. (.6 Acre adjacent lot available $125,000) STRUCTURE INFORMATION Room ILevel IDimen I Room Description ILevel JDimen jMisc Living Rm IMAIN 123x16 I J I IHeat: Hot Water Dm ,,g Rm tM^,. 112,,11 I I I IFuel: Natural Gas FamiCRm ILOWER 143x15 I I I IAirConditioning:None Kitchen tMAIN 123x12 I I I IWater: City Water-Connected Bedroom1 IMAIN 114x13 I I J ISewer: City Sewer - Connected a room4 ILOWE.1 22'I I t IPoo : Total Baths: 3 Full: 1 3/4:1 1/2:1 1/4:0 Bath Characteristics: Main Floor Full Bath, Main Floor 112 Bath, 314 Basement Dining Room: Separate/Formal Dining Room, Eat In Kitchen Family Room: Lower Level, Family Room Fireplaces: 2 Fireplace Characteristics: Living Room, Family Room, Wood Burning Appliances: Range, Dishwasher, Refrigerator, Water Softener - Owned Basement: Walkout, Full, Finished (Livable), Daylight/Lookout Windows Exterior: Hardboard/Masonite Fencing: Roof: Amenities - Shared: http://n~rthstarm~s~c~m/~earchDetai~/~cripts/P~AgtFu~/PrtAgtFu~asp?prp=M~s&where=.+~ 1 l/13/2003 Property Full Report Page 0 of 6 Amenities - Unit: Parking Characteristics: Attached Garage, Garage Door Opener Snared Rooms: Special Search: Second Umt: I MISCELLANEOUS Topography: Agricultural Water OutbuiiC~ngs Tillable Acres: Pasture Acres: Wooded Acres: Farm T¥~e: Soil Tv~e: Cro~ Tvoe II[ Under Construction: IProj Comp Date: JLot Price: $ JLow Pr,ce Range: fHigh Price Range JMo0el Location ~Model Phone: Auction: No jMoael Hours Oper' Auctioneer L~cense #: 0 Auction Type: NIA ~ Buyer Broker Comp: 2,7% Facilitator Comp: 0% Cooperating Broker Comp Sub Agent: 0% Financial Remarks: Sellers Terms: Existing Mortgage Information Existing Financing: Conventional Loan Orig Date: Existing Mortgage Amount: Int Rate: Principal/Iht: Secondary Fin?: List #: 2197622 Listing Agent: Todd Grill Listing Of[ice: RE/MAX Results Prepared by:Stuart B Storm Vanable Rate: No Type: Exclusive Right To Sell Address: 17335 Co Rd 24 PLYM - Plymouth, Minnesota 65447 Todd Grill 763-591-6007 Appt Phone: 763-591-6035 Office Phone: 763-591-6000 Information Deemed Reliable But Not Guaranteed © 2001-2003 Regional MLS of Minn., Inc. All Rights Reserved http://n~rthstarm~s~c~m/SearchDetai~/Scripts/PrtAgtFu~/PrtAgtFu~asp?prp=M~s&where=~ 11/13/2003 Property Full Report Page 3 of 6 Single Family Residential Additional photos and supplements may be attached. If so, you may access them Py clicking on the aPove photo Status: Active Sty!e: (SF) One Story Ccns~ruc[~on S[atus: Previously Owned Year Built: 1967 Map Page: 77 Bedrooms: 4 Map Coord: E2 Total Bath: 3 Fire = 8117 XENIA AVE N BP - Brooklyn Park, Minnesota 55443 Garage: 2 Lot Size: GETTING Acres: 0 Foundation Size: 1342 AbvGrd Fin Sqft: 1342 BelGrd Fin Sqff: 680 Totat Fm Sqft: 2022 List Date: 912512003 Recd by MLS: 912512003 Market Time: 50 List Price: $ 204,500 L~st :;: 2194779 Ori¢ L~st Price: $ 209,900 MLS Area #:364 Sec Are~. TAX INFORMATION Tax Year: 2003 Tax Amt: $ 2,084 Tax w,'assess: S 2,084 Assess BaL$ 0 Assess Pend: No Homestead: Yes ~ Prol3erty ID: 2111921240052 GENERAL PROPERTY INFORMATION Directions: 1694 TO BROOKLYNBLVD N TO REGENT R TO 81ST L TO XENIA R TO HOME Legal ' CRESTVIEW PLAZA 3RD LOT 016, BLK 005 County: HENN - Hennepin Lake/Waterfront: School Districl Info: 763-391-7000, 279 - Osseo, School District #279 Complex/Development/Subdivision; Restrictions/Covenants: Lot Description: Tree Coverage. Medium Association Fee: $ 0 Frequency: NIA Fee Includes: NIA Accessibility: None Zonin.q: Residential. Single Road Frontage: City, Paved Streets, Curbs Lake Name: Common Wail: No Approved Financing REMARKS Agent Remarks: LARGE 4 BR RAMBLER WI3 SEASON PORCH (WOOD STOVE SO USED ALL WINTER), LG KITCHEN W/EATING AREA, 4 BDRMS UP, MSTR 112 BATH, UPPER FP IS GAS W/BLOWER, NICE TREES W/FRUiT, 2 CAR GARAGE IN GREAT NEIGHBORHOOD, CLOSE TO SCHOOLS, EASY ACCESS TO FREEWAY. Public Remarks: LARGE 4 BR RAMBLER WI3 SEASON PORCH (WOOD STOVE SO USED ALL WINTER), LG KITCHEN W/EATING AREA, 4 BDRMS UP, MSTR 112 BATH, UPPER FP IS GAS W/BLOWER, NICE TREES W/FRUIT, 2 CAR GARAGE IN GREAT NEIGHBORHOOD, CLOSE TO SCHOOLS, EASY ACCESS TO FREEWAY. STRUCTURE INFORMATION Room JLevel IDimen IRoom Description JLevel I ,D. imen IMisc Living Rm JUPPER t19x14 IPOrch IUPPER !14X12 IHeat: Forced Air Dining Rm J J JDeck lUPPER j14x8 IFuel: Natural Gas Family Rrn JLOWER 115X40 I I j lAir Conditioning: Central Kitchen lUPPER 112X20 I I I tWater: City Water - Connected Bedroom1 IUPPER 112x12 I I I ISewer: City Sewer-Connected Bedroom2 lUPPE" 112X12 I I I IGarage Sta,s: 2 Beoroom3 lUPPER 19X14 I I I IOt erPark,ng: Bedroom4 IUPPER 112X9 I I I IPool: Total Baths: 3 Full: 1 3/4:1 1/2:1 1/4:0 Bath Characteristics: Main Floor Full Bath, 112 Master, Full Basement Dining Room: Eat In Kitchen Family Room: Lower Level Fireplaces: 2 Fireplace Characteristics: Living Room, Family Room, Gas Burning Appliances: Range, Exhaust Fan/Hood, Dishwasher, Refrigerator, Washer, Dryer, Water Softener. Owned Basement: Full, Drain Tiled, Sump Pump Exterior: Hardboard/Masonite Fencing: http://n~rthstarm~s~c~m/SearchDetai~/Scri~ts/PrtAgtFu~/PrtAgtFu~.asp?prp=M~s&:where=.+~~. 11/13/2003 Property Full Report Page 4 of o Roof: Amemties - Shared: Amenities - Unit: Deck, Porch, Natural Woodwork, Kitchen Window, Tiled Floors, Washer/Dryer Hookup Parking Characterisbcs: Attached Garage, Driveway - Asphalt, Garage Door Opener Snared Rooms: Special Search: Main Floor Bedroom, 4 BR on One Level Second iMISCELLANEOUS Topography: Agricultural Water: OutDuiidmgs: Tillable Acres: Pasture Acres: Wooded Acres Farm Type: Soil Tyme' Crop TN'De llf Under Construction: I Proi Comm Date I Lot Price: $ ILow Price Ranoe: JHigh Price Ranoe , ~Model Phone: !Mo0el Hours Ooe:~ Auction: No Auctioneer L~cense ;¢: 0 Cooperating Broker Comp Buyer Broker Comp: 3.15% SuD Agent: 0% Facilitator Comp: 0% Financial Remarks: NO CD NO ASSUMPTION Sellers Terms: FHA, DVA, Conventional, Cash Existing Mortgage Information Ex~st~ng Financing: Loan Ong Date: Ex~sting Mortgage Amount: Iht Rate: Principal/Iht: Secondary Fin?: Auction Type: NIA VanaOle Rate: No Type: Exclusive Right To Sell List #: 2194779 Listing Agent: Michael F Trepanier Listing Office: Kruqer Gallery Hms Prepared by:St___uart B Storm Address: 8117 XENIA AVE N BP - Brooklyn Park, Minnesota 55443 Michael F. Trepanier Appt Phone: 763-398-1597 Office Phone: 763-533-7000 Infon~atton Deemed Re/table But Not Guaranteed (D 2001-2003 Regional MLS of Minn., Inc, All Rights Reserved http://n~rthstarm~s~c~m/SearchDetai~/Scripts/PrtAgtFu~~PrtAgtFu~~asp?prp=M~s&where=.+~.~ l 1/13/2003 30118551 Pro ~d~n~ Quarry Appr~ml~ for Bu~.~ Lenders Client: DATA SUMMARY lof New Hope/Ken Domsky Xyion Avenue N. New Hope, MN 55428-4898 Borrower: NIA Address: 7601 Bass Lake Road New Hope, MN 55428 Value: $220,000 Date: October 20, 2003 Appraiser: Client File: Forsythe File: Gregory V. Ca_ li_ahan, Cert Real Real Prop 30118551 APPRAISALS, LLC 222 EAST LII'I'LE CANADA ROAD. ST. PAUL, MINNESOTA 55117 (612) 486-95501 FAX: (612) 486-9732 , , UNIFORM RESIDENTIAL APPRAISAL REPORT F,, ~o. 3{'! 1555' New Hope .~ 7601 Bass Lake Road Land Survey No. 1026 Tract B cc:.--. MenneD~- ~s~'~No 0511821330091 ]'a~ea~ 2003 R=- ia~es~ 1.~0.~ ~ca ~ess~-:r~ NOnt ~,~ NIA C~e-:~' W~lte Timothy & Lois o~-' X e~ Name Ma:~ae~e,m D2-? ce'.,.- :-::' 5120 C21F [en~C,e~ Cl~y of New Hope/Ken Dores~v Ao~e~, 4401 Xv~on Avenue N New ~oDe ~N Callanan Ce~ Resl Rea~ ~o~s ~ anteing S~,e ~ ~mnc lena-* 350 -:- 6~ &?*~t?. ~;' ~O~ ~e: ~e m~ the racial c~l~on of the ~lgh~ ~m ~t Ip~miml 222 Llt't~e Canaoa Roac, Lm'~e Canaaa kin 5? '- Ne~phOcx'nood Oounoarle$ and cnaracterlshcs The sublect*s nel,qhDOrnOO~ Dounoarles are Broo~(i,.,r~ ~utn. Coun~ RU 81 to the east and H~nway 169 ~o the west Trims ~s an es~aDusne~ area Bass La~e Road is an estabhsneo remOentlal street. County Road 8~. a Ioca~ traffic a~e~ acceSSDemandtOforSnoppm~. SChOOlS. employment centers, freeways, ano recreat;or ProPerty values nave rrounOmflo homes The neronDornoo~ ll[iona; comments MLS marketln district #362. MLS statistics indicate that 87 40e/o of all hstmna~s ar_e_s_e_lh~9, w~tt~ ar' ~cjL~.g a__Line pre___sent t)me is anti sellers Al3i3fOXlmate lolai nulls' of units ~n the suDjecl I~OleCl NIA ~:~Drommate IOlat numoer o! units for same m Ina suD~ect prozac' N~ I:~en,~ons trr_.E~g.ular S,leama ~oprox. 28,493 SqFt (per county) ~er~o: -- Yes tX ~.~ S,ze SDeClflc ZOmng classification and ae.._~SO'll)l~on LB - Limited Business - ShaDe ZomngconlDi~me ~J Legar ~ LagMnO'~'~""~J(~UM) ~ll#ega: ~ Noz~m; ~mn~e NIA ' ~ t s~t Bituminous ~ -- ~ ~u~ Calcite ~ ~oaemeasemen~ Wal~ ~ ~k Concrete IX ~ ~ ~r ~ ~ S~ts Yes IX ~ ~ None ~ ~ S ~_.~o_e s Gently Abv Avp ,' 28 493S~ !.rreg ula r Aoequate l__yp,cal A~Sphalt FEMASDec~ai~*°°O~azaro~ea ~ Yes I_X r;. FEMA Zone "X" MaD Date 3/3 0101 Ty~ ([~I.IAIL) De,~n Age lYre.) INTERIOR Fees Wais Tnm/Fb~sh Ba~ FIm~ FEMA Mao ~c 27053C-0192E Comments (apl}arch! aoverae casemenls, encloachmenls, iDac,al assessments, shee ~eas. the~al or legal no~/or~n~ Zomn~. use. el: , GENE~ ~SCRIPTION ~ E~RIOR ~SCRIPTION ~.of~ pne FOUN~TION ~ 8~EMEN~ INSU~TiON Concrete ~. dSt~s One / ~ ~oNO , ~ea~F~ 1628 ~W~s ~ ' %F~.,~ ~. 80% Detach ~ ~f~m Tar& P~ch ~ aa~nr ~ull Ce,.ng ACSt Ti~e wa~ ~onc ~ambler~ ~ma~ ~one ~ ~No Wal,s ~W/Pane~: F~. E~ist ~T~ D.Hune j ~ess ~one Note~ ~ F~* ~onc 50 Years ~ st~s ~to~s i ~.t None Noted ~ Yes ~No ~ - ~ aled X 1 ~ I 1 1 1 .5 ~ 3 2 ~t~ H~TING ~ E~IP. A~IC ; ~ENITIES ~ I CAR STAGE Ha F~I Ga~,~ Sta, I Palm ~ ~Sm~ ~ I~ ~S ~: ~e3 ~o~s ~LI~ ~ ~ I ~ _ ~ ~ ~la~d 3 Car ~ ~ F~ F~ I F~ , etc. =ualty of ~uctmn I.o, hazardoua Aa'voile eflwronment~l condivons (such as, but n If1~tldiita w~inity of the sub.icct ProDerly: UNIFORM RESIDENTIAL APPRAISAL REPORT ~,e ~o 30 ~ 185.~' ESTIMATEDSffE VALUE = ,~ ESTIMATED REPRODL.'CTION COST-NEW O; ii~r~RovEMENT. $ So P, @.~__ = 0 ~.,_. $: c: @.~ : 0 Total Es[~a[eci Cos! Ne~ : $ C Pnwca ' Fun~ora E.xlema Es: Remalmn; ~.~'~ Deo~a=em~ = -< 0 Del~'eoated Vmue of II1x3rovemen:$ = .¢ '~-~s' Value of Site tmotovemeflt.< = .~ INDICATED VALUE BY COST APPROACH = .= ITEl,,' SUSJE3- 65.000 Comments o'~ ~.ost AD:'Oa:' is.o" as sc..'c.e ."' cc.<: est -:-': T~e site vatue as vacant is based on market francs Totm economic life of 100 vrs N/;, COMPARABLE ND ' 30M=ARA~..£ N: - 7601 Bass Lake Road :7931 60th Avenue N ,4949 YUKOn Avenue N 32~3 Ufa~ ,%'enue K A~ess New No~e ! New Nope 55428 . Approx 1/4 Sams Once ~L~ ~e~ 235.000 ' New NoDe 5542~: New ~ ~o~e 5542- Approx. 314 M,e Acaro~2 .... M,e~ -- .~ 223.500 ~ .~ 130.24 :- ~ 14~ 0.~: - -- 22-.-~ Da:a ancot r Inspection ! MLS/Counly ve~ficm,m Sources I County Info 122 Days on Market DESCRIPTIOr; DESCRIPTION * ~-~ ; MLS/Coumy '26 Days on Market DESCa'~TIO~, . .~ ~ ~ ~,~ MLS Count; ~ Days on Mar,~e: , Conv/0 Pts : By Setfe, Saes o~ F,r,~n~,~ f NIA , Cony/0 Pts C~nces~ons INIA ~ Seller Dam of Sale/'f~me [N/A ~Clsd 4/03 L~l~n ~Suburban ~ Location ~ Fee ~ .65 Acre ~25 Acre i V~ I Woo~ & Res t Resi0~ntial/Inf ; Cony/0 Pts ~ Seller , Clsd 8/03 ~ocatlon 10 000, .26 Acre 2,5001 Rest_ aenttalllnf : 35___Years Clsa 8/03 -10.000____~Su_.~..c Locahon - IC 023 Fee S~m ~e_p~ 10.000 .21Acre 10 2.500 Woooed& Res !50 Yrs. 142 Years C, on(bm~ ~ Cond. ~ Cond Above G~ade ~ e~-,~ ~ 1.~: ~.,.s ' B~s RoomCounl 25 7 3 2.00, 6 2 1.00 ~ea ~,~4~ rz~ IFull IFull SF Fin. ~ ;F Fin. FA C/Air Ga~ C/Att ~~Unknow~ I:~ch. Paao. Deck, ! Deck t 4 Seas. Porch : I N/A N/A I N/A t N/A :$ ,~ Sa~ ~:e : ems: 26% C~ss: 28% Com~nts on ~Ms Co~n (m~uOing the sub~ect ~'s ~mpatibihW to the nmghbornooo, elc. ) c ~ond 3,000 ! ,,,, ~,,., ~,, z' 00' 7 2.00 1~716 So~ ! Full 6,000'120 SF Fin. I Gas FA_.~C/A~r ~ Unknown -5,00014 Seas. Porch~ ~laces ~N/A 200 ~,~ S~m,ar C)_______~ual~t,,, .42 Years ,~,,, s,,,,.. ~.. 3.000~ .... ~ 3 1.00 ..... -2,200 !.542 s~. ,Fut~ 11.80~ 700 SF Fm 6,00~ ' Ga~FA C/A~r UnKnown 2.500 '2 Car Gara e ~2.50___J -5.000, Large Deck -2.00l 2.0001 F~reolaces 2..___~0g_~ ~l Tu~ -1.50( ~ N/A ~ 4.900 ~ ~ 1 C~'oss. 24.66% maae m~shed ITEM Date. Price and Data f N/A ~ NO 2 NO 3 Saxce~'ma.~as I N/A N/A ~See Comps Sales Grid ~See Comp Sales Gna N/A ~ N/A ~ N/A i ~ of ~ ~t ~t ~ ~. op~, ~ ~tmg ~ t~ ~e~ ~ and ana~s of an~ ~ -~- -, -..-.-- J I~ V~ ~ ~ C~P~ ~R~ Thru Ippmm is mede ~ =$ ' ~F subject Io core,ebon De' ~ rolo sDeat, Cal~qs Indi~ Tim !~ of tl~ al~ m to estm~te the market vakJe of the rill Properly Ihat ~ the suiolec~ of It.s repert, basra3 o~ the i~ove conditions and tim C~mn cmmcjen! ; l~ad kmtmg cemJbon8, m~d mmtcet ~4ue de~ndma that ~e ~lJd n ~ II~ched ~ ~IIIE) E~I1MATE THE MA/~ VA/.UE, A~ ..... ~4~ ~ f~Bm~ m~n~ ~~~~~m~~m~s 220,000 Sme ~. s ~6 StYe MN ~te ~ ~ ~ ~ Stale ~St~e L~e~ Stme Fo~e Appmi~IS, LLC ~ ~ I~wer: N/A i ~l~ess: 7601 Bass L~Ke Roa0 New Hope Ftle Nc 3011855 Case Nc 7,F' 5542E Lenae, CiIy of New HoDe~l~.en Dore$~ FRONT VIEW OF SUBJECT PROPERTY. REAR VIEW OF SUBJECT PROPERTY STREETSCENE IBo~ower: N/A Acl0ress 7601 Bass Lake Roaa C~¥' New Hope F~le No 3011855' Case No St MN Zip: 55428 Len0e" C~ty of New ~ope~Ken Doresl(~ Bo~ower: N/.C. F,ehc 301185~ AclOress 7601 Bass Lake Roa0 Case Nc Cnv' New Hope St MI~ Z~' 5542~ Lenoe' C~W of New Hooe~'~.en DoresK~ .l &~ower: N/A F,le Nc 30118551 Adclress 7601 Bass Lal(e Roa0 Case No New Hope St: MN Zip: 55428 Lenaer City of New Hope/Ken DoresK~ COMPARABLE SALE 793! 60m Avenue New htODe COMPARABLE SALE #2 4949 Yukon Avenue N New HO!De 55428 COMPARABLE SALE #3 3010 Utah Avenue N New Hol3e 55427 ADDENDUM ~,~fAGG~ess 7601 Sass La~e Roac Case Le~e" C~y of N~ ~o~/Ken ADDITIONAL FEATURES: In addit,on, the sub.~ect has: a detached three car garage, smal~ deCk. centra; a~r an= two hreolaces CONDITION OF THE IMPROVEMENTS: Recent Improvements Der homeowner - new hot water nearer new Olsnwasne- newe- furnace a,'t.c central air. The subiect has been ~nsDected for Diqys,cal. functional, and external maoecluac~es no apparent functional or external obsolescence COMMENTS ON SALES COMPARISON: The SUDleCt nas Because the sublect is located ;n an unusual location behmcl other dwellings on a busy stree: comparabJes are considered subenor m location All comparables have smaller lots and are inferior m site value Because of the subject's wooded lot, comparables one and two are inferior m v~ew amemtv Because the subject has a flat roof, all comparables are superior in appeal As noted during a drive by inspection and also in their MLS listing data, all comloarables are superior in condition. Comparables one and three have one tess bath and are inferior in above grade room vatue TRANSMITTAL LETTER: The subject was inspected on October 20. 2003. The estimated market value as of October 20. 2003 (effective date), is $220,000. The property was appraised by Gregory V. Callahan, Licence Number 4002346. Certihed Residential Real Property Appraiser. A certified residential real property appraiser may appraise residential property or agricultural property without regard to transaction value or complexity This appraisal report is a "Summary Appraisal Report". It conforms to the 1997 Uniform Standards of Professional Appraisal Practice. No responsibility has been assumed for matters which are legal in nature, nor has any ol3mlon on them been rendered, other than assuming marketable title. Liens and encumbrances, if any. have been disregarded and the property was aploraised as though free of indebteotness. Please feel free to call us if you have a question. ADDITIONAL COMMENTS: 1. The purpose of the appraisal is to estimate the market value of the subject property for litigation PUrpOses. 2. The legal description of the subject property can be found on page I of the 1004 form. 3. The reasonable marketing period for the subject property is under 90 days. 4. According to the county and the MLS system, the subiect property has not been transferred in the past 36 months 5. The subject Property was inspected on October 20, 2003, the report was prepared on October 20, 2003, the effective date of the appraisal is October 20, 2003. A~l~en~m Page 1 ~,2 aon'ower NtA Properly Aaoress 7601 Bass La~e Rod: Cny New Lem3e, Gm/of New HoPe/Ken Dores.~ ADDENDUM Case The subJeCt is an ex,sting structure Th~s appraisal ~s made ' as ~s ' 7. Personal property was not mciudecl in the apprmser~ va~ue 8. We have consiOered all three approaches to value The income approach was nc: ut,~ze: Que :c lack of reliable rental clara of single family homes m th~s nelghDornooC The cos: a:~roacn was consiclered but not consloereci apl3hcable, therefore ~t was not mciuoec 9. The subject is a single family res~clential property Revenues. expenses, ana,,c- vacancies c? nc: apply. 10. Current and future employment or compensation is not contingent upon the repomna cf s predetermined value or direction m value that favors the cause of the chent, the amoum'of me va~ue estimate, the attainment of a stipulate0 result or the occurrence of a SuDseQuen! even: 11. This appraisal report was completed in conformity with the Uniform Standards of Profess~ona: Appraisal Practice. 12. If the photos included in this appraisal are digital/electronm images, they nave not been enlaroec enhancecl, or altered in any way. ~ 13. If electronic/digital signatures are used, it has been ruled acceptable appra~sa~ practice Dy USPAP 14. The appraiser certified that if this appraisal included an electronic/d~g~tal s~gnature ~t ,s maintained and controlled by the appraiser completing the report. GC DIMENSION LIST ADDENDUM /Bom~wer: NIA F.e Nc 30 ? 1855' Prope~ Adaress:7601 Bass La~ce Roac~ Case Nc C~': New Hope S~ate' MA, Z': 5542F ! GROSS BUILDING AREA (GBA) ~,25E I GROSS LIVING AREA (GLA) ~ ~a.~: 1.628 50 ~ea Measurements ~ea Ty~e ~---- ....... - Fa~ T~al , Le~ll ke~12 Level3 ~her Bsmt ~rage ~4.00 ~ 24oo , ~ = 576.00 ,~ ..... 38.00 , 2600 ~ ~ = 9~a.~ ~ ,_. ~ : - _ _ _ _ x ~ x = ~ ' ~. x _, x = ~ ~ x x - ; ~ / x __ = I : ~ FLOORPLAN Borrower: N/A F~e Nc 30 ? 1 ~55' Properly A0oress: 7601 Bass LaKe Roa0 Case ~c Ci~': New Hope State: M/'~ g~:': 55426 DoresK~ 24.0' Breakfast 8.0' >' C: Den Kitchen Living Room BeOroom Bath Bedroom Dining 38.0' Sketch by Al)ex IV WindowsTM AREA CALCULATIONS SUMMARY 1628,00 Bath Beclroom Laun0ry TOTAL LIVABLE (roun~le~) 1628.00 LIVING AREA BREAKDOWN 1628 3 Areas Total (rouncled) ,.' ' ,,.. '-,. .: ~_. ~ ~ · i ~ 7901 "; ' ....... .... ~--; ~ ._-'- 7810 ! .: .............. ~ ........... ~' ...................... ~ ..... -- ........ :- ....... ...:,,_ ' · - ; · ' !' : ' '.'' , : ' · .. . : ~, ~59 . , 5~6 ..... , . , ,,--. : ............ ! -':-- .......... i-°; ............. ': : .......... $ ; · .---.--..1, . t · - ,,... --,, ,' .' ~......~ ' · ..-~.~ ,. ....... ..; L .......... : : ' / -,... 7940 ." ~ : : ~ ,' .I : ~ ~-..-.,.--..,... i i... 5518 ..' ~ :: :, 5510 ~ ~T ,~: c) i ; ." : ''"---.-- .... -...--,.-~ .: : : O: ~ .-' ,,- .: .-' ' ~-~ : , 5512 ~ _ .---.. .:____ , ~.~ ~., ~ .... ~ ." ,~.__ .'. 5501 .-- ., //I;~ : ; : .'__ _,: · ': : -"'Z_' .......... -', ..' :" : : ; ~ 7~5i " ,~ .~.,~)1;3~ , .......... . : ............ .,;- .._,.~,..._ ...;. .....__ ~ ?-- .............. _: ....... i ,ave' N , ; ..... -~ .......... ~ i: 55oo : ~ i : ~ ; -"-., .,~ .... ".,- ....... ~ r ...... I , , ~ · ~37 , . , . . ' '-'. : ....... ! ..... -; ......... -.'.i. 544o !'~z~ iL,ji~4~-'"i ? r'"-----.. ..... i r-- ..... -,- .................. ; ; ,,~'~',,,,',' ;~4t.~/ ~ , .. . , . ....... · 5420 ; ~'"" i - : :. , 5426 ;: 5427 :"~' 7806 : 54"" : : · ,-",,~ ~ .~ ~ ............. ~. ........ .~ ~.... .,. ~ ; ~ '.-' ~ .7 ;;;z,~-'o ~ i ." ( : ~A~ ., ; "'°'' .--~.--_.~ ~,....~ ...... ~...... . i I I ............... DR. ' ..... ........................ - . ~20 .-. .... · ~ . . .... ____ : _ '-~ , · ~ ~17 , : 54~ · ~ - ; ~20 . ~1 '~ ~ ~ - =,,4.10 : ~11 ~ ~ ......... ~ ..... ; ~ ; ; ~ ; ~ ~ '. ' ~18 .. ~eq , . . ,~,419 ! ,,,,,,, , · ......... : "S" ~ ~.-,.--__._~. ..... :"j,. .. ....... , , ,.s ~. ,. :)4~4. 5413 , 541A. ,, ...... ~ -'-- ~ ~ ,: ...... . , ........... :&~l , : ~ IA,/' '"-''"' .... , , 5406 ; .1--. .. ... ................... ~.. . 5355 ' ~ : "*'~" ............ ';'~ ~ ..... ':'"- ' ',,..1: ' ' · , '-- ..... ;.- ~ ~ ~ ." m.,,A, ~lJ"~: t .... "~o__ ,.'-- .... '-.--- ---.. ; :.. . ..... ~ "' ~q'~ :"''~ S400 ~ .K4/IS ~1,~ K~,',,,~ ; -,,,,, ~ ~ ..... ; ....... -.-~-- ,..... ; ~ , ; -- -.... .:..~i,: ~ ,,,,,1"1"~JI $ : ~,,b~ ""~ ~ 53-' - 5325 , '-5330 ' ---- ; ,' ..... ' "- ...... "'-,. .............. ., . : ~ o.: ,,,,,~ , ~,,~,,~ · : ...................,... , · 5324 , 5Z,31 ~ · .,r)34 . ~LL.I. - .' .......... , . · ~ · _ ....... . 2; 532,5 ~__~ ,c~.,,., · - -' : · ~ ........ 'z- ......... ~ ,: · I 13~.- '- -~1 ~ :~., m. _ , ~13 · .~ ....... ,: ..... ~.. . " ~ ' ~ ' ~ ' ' ~ : ' : ' "L,L,J' .... ~"J ~ ~, ~i ~ .,, ,_ ~.--..~ .-' ~' 5318 -: 5325 · l:~ ~ ,:'~',, .' ,.,,,, · ........... · ,.. .. , ~:_ , , , .--,,. ........ u ...... ,,,.~,; ~ 5325 · . ~, .. / :' ., ; ~ ~! : ; ~,-'; ....... -.;.__.. : .. ,, ~, 5307: : 5312; 5319: h,-; 5330 ~ 5317 J : ~'l~l' ~ ...... ,%1 ~ .,,.,.,,. ~' .I, .. ......, ..... .,~/ ! it ; .t' ; ~mh.,llO ( Ltd* ( ~ '"--... ~-. .i '"'.,,..../ r · '-'-- ......; .- .... ---...,... ..._..; · ~ ~.7825 , ,. ,,~.,_ , · ~, K'~s'~ . 5324 : ~s't :' : .... '. : , .~ .~ . : , - .. ,' --.. ~ : · : .t'~'-'-',.------,,lq ; · . ...... ~'- 'q,,' ',~/ ; _v ~ ', '"~' · ~ '" i ',,",,'q,~ ; _Ii'q/Y? : ~ . 0~"i~ i I ', : ~';' ~"' '". : ' -' '~ ;' -'"'-' : · ~ : I~ . - ( - E ! · : . ; . ' ~ I ; ...'YI,.. : ,,~, ~: -...: ; 5312 .. 5305 . , , " ; : ".- ; ..~,e~ "f i ~r~ .~ : ~)34J~ : ~'~,~l · , ~ ; ......... '"3 c~ .' ~.*-~. '"..'~ .: '.~' '~"~, ; ~ ~ i .'- ." '" · . : __ ,.,.~r'll ,. ,% . . ) .....~ , -, · ~..,~., . ~ ..... ; >_ ".., '"-, / ..-' ..... ....~, '.,,.., ST. O 0 East Winnetka Study Area - Planning District 6 AVE N ., :: ~ '~,m':i; ~, ' ........ :~ ......i ~ '~ .... ~ :=~j ~ [ ~ ~ ~1 .' ' ~ ' ' ~ '7 ':-- ' ' -- ' , ? / ~ ~ ' ~ ......... ~ ~ ~ ~ ,: ~ ~ ~l -- ..... ....... r ......~ ......... · ~7 ~ : . : , . ~ · ~ .... ~ ....... ~ ~ ~ ~~ ; ~ j :. . ~ ~ '--'~ "L' ..... ~ ........... -J ~~//J ~17 ~ ~ 54~ ~ ~ ~ ~ Comprehensive Planning District .......... ~ ....... ~ ~ ;' ; ~,~, ...... ; ..... ; I ~ I ~1 ~ ~ ~ -,-, ~ / -I. aa4u wInnetka Ave. N. ~._~__~ ;' ~ ~ ~--[ J 2. ~06 Winnetka Ave. N. ............. ~~..~/j ~; ~ .... :- '- ~ ~ J 3. 5410/12 Winnetka.Ave. N. -- ~19 ~ '- ....... ~ ........ ~ ;'I 5. 5422 Winnetka Ave. N. ' ~ ~,..~ ~ ~ ~24 / ~1 ~ ~ ) 6. 5506 Winnetka Ave. N. ~ ~ g ~ ~ ~ ; ~~ ~ ....... ~"~j::-~ J 7. 5518 Winnetka Ave N ; , / · . ~ _ ~ ~ ) , 8. 5524 W~nnetka Ave N ~ ~ ..... ~.. ~ ~ ,: ~ / ~ ~ ~ .... ~ O~. 9. 5532 Winnetka Ave. N. ? ~. ~ ~/ ~7~ ~ ~12~ ~19 [~ 10. 5550 Winnetka Ave N ' ~__~.. %/ ~ ~%. : .-"~-~.~ ~ %. ' . ~ : -'".. ~. f "'~ ~ ; -' ......r ; 11. 5520 Sumter Ave. N. · ; ~ t~ ~ : ; · .- · ~ ~ 8~ ~-,.. ~'.~ ' ,' ~/ ~13 .' .' J 12. 5530 Sumter Ave. N ; ~- ....~ '~:.,~ r ~ "~ , ~ ~- ~ 13 5~~ ~ ....... ' ~ } ~ E ~ ~ / %.. :' _ ~ ~" ~ · ~ oumt~r ~V~. N. ~ ~'"~_~ ~ ~ "...,~(., ~ ~ ~ ~/'".,~ ; ~ ~ 16. 7621 Bass Lake Road E~: ~ ~' ?-~.~ ~ ~ ',J / ~/ ~/ ~?~- J 17. 7801 Bass Lake Road Propeny Information Search by Street Address Result page Page I of 2 Search By: Property ID Address .Adoition Name HOUSE or BUILDING #: 17601 STREET NAME: (at least first 3 characters) IBass Lake Road UNIT # (if applicable) I --~ records per page Hennepin County, MN Property Information Search Result the Hennepm ~ooU nn· Propt,,'nT-~-a~r ~,~-d~Tt.,. updated daih' (Mondm' - Frida3v at approxmmteO' 9.' 15 p.m. tCSD Property ID: Address: Municipality: School Dist: Watershed: Sewer Dist: Owner Name: Taxpayer Name & Address: Parcel Data for Taxes Payable 2003 Click Here for State Copy of Payable 2003 Tax Statement 'v',e,.v '.qa." I 'r;,~.~s [-~.i~ ,j r.a.,,~.e~,, c;:t,:~-'. ,I 05-118-21-33-0091 7601 BASS LAKE RD NEW HOPE 281 0 02 T J & L K WHITE TIMOTHY J & LOIS K WHITE 7601 BASS LAKE RD NEW HOPE MN 55428 Construction year: 1953 Parcel Size: IRREGUI Most Current Sales Information Sales prices are reported as listed on the Certificate of Real Estate Value an warranted to represent arms-length transactions. Sale Date: October, 1985 Sale Price: $70,500 Transaction Type: Contract For Deed Addition Name: Lot: Block: Metes & Bounds: Tax Parcel Description REG. LAND SURVEY NO. 1026 TRACT B Abstract or Torrens: TORRENS Value and Tax Summary for Taxes Payable 2003 Values Established by Assessor as of January 2, 200~ Estimated Market Value: $145,000 Limited Market Value: Taxable Market Value: Total Improvement Amount: Total Net Tax: $122,200 $122,200 $1,640.94 http:l/www2.co.hermepin.mn.us/pins/addrresult.jsp 9~29~03 Property Information Search by Street Address Result page Page 2 of 2 Total Special Assessments: Solid Waste Fee: Total Tax: $23.20 $1,664.14 ~-~*-". :-~,,- ! Property Information Detail for Taxes Payable 2003 Values Established by Assessor as of January 2,200; Values: Land Market $48,000 Building Market $97,000 Machinery Market Total Market: $145,000 Land Limited $40,500 Building Limited $81,700 Total Limited: $122,200 Qualifying Improvements Classifications: Property Type RESIDENTIAL Homestead Status HOMESTEAD Relative Homestead Agricultural Exempt Status 48337 Hennepin County is providing this information as a public service. Have a tax related question? Send e-mail to taxinfo@co.hennepin.mn.us Experience a problem searching database, have a technical question or wish to c, Hennepin County Tax web site? Send e-mail to webinfo@co.hennepin.mn.us Have a comment on any of Hennepin County's web sites or E-Commerce applical e-mail to Henn.Net@co.hennepin.mn.us Hom~ -C, er'.'~ =e.q Taxpayer ..C,e p., Copyright © 1998 - 2001 Hennepin County " Ma http://www2.co.hennepin.mn.us/pins/addrresult.j sp 9/29/03 INQU/~RY CODE ~01 DST 281 WTRShqD.. 0 SWR DST B2 iFPROJ OW~'ER T J & L K WHITZ PROP ADDR 7601 BASS ~.~ TAXPAY N/A TIMO_TEY J & LOIS K 08/10/2001 7601 BASS NEW HOPE M~' 55428 MUNiC 85 ~ 32C PARCEL MTG LO.~/%' ~ 0433Q-~4S6O MTG CO CODE 401 R/S, ~ D,IS - CO~' ~ GROSS TAX 3,991.68 STATE AID 2,088.74 HMSTD CR 262.00 NET TAX SOLED WASTE SPEC/ALS TOTAL TAX N~T TAX PAID CJ P/L CJ/CONTRACT NO EARLIEST DELQ YR DIV PENDING TAX ADJ PEND PFR PENDING PFR DATE FO.~,M M-!PR LA' _ MKT VALL~ TAX STATE GEE TAX iMPROV EST FS' !45,000 QUAL iMPROV LTD VAL~JE 122,200 HMSTD CD H AG TAXABLE MV 122,200 O~;ER iC AERE .~ .,222 320 ACR~ LIMIT 1,640.94 23.20 .~0 1,664.14 ~ 664 14 LAST PMT DATE 10/09/03 SPEC ADJ PEND PFR # 224.35 ?/S DEF SPECIAL RANICRUPTCY TARGETED ~ '¢- YR FD AREA TC .=TD AREA TAX LOCAL TC LOCAL TX CO .,90 1,416.56 V~LUATI ON I1TFORMATI ON INQUIRY CODE 201 PROPERTY ID 05 118 21 33 009! ASSESSMENT YEJUR ~003) CONST ~ 1953 STA~S ~ ACR~GE ~ ~ST ~P~I~ED 2003 SCH DIST 281 WA~RS~D 0 S~ PRI/SEC CODE ; ~F ID - ~Q A~ORI~/ IF PRO.CT ~SESS~ CODE S~RECO~ 1/******** ~T V~S ****--*** ' _ [ESTI~ LIMI~ T~LE ~S~ ~EI ~ ~ so,soo 4~,2oo 43,200 ~ ~SE2 ~'~~ ~ -~ ~ NON ~STD MKT TOT~ ~ 16~00~ 1~6,80~ 136,80~ ~T T~ ~AC!TY TOT~ I~RO~~S ' P-~OPERTY TYPE R PARTIAL CONST CODE AGR I CULTURE 10 ACRES 320 ACRE EXEMPT CODE GR AC/OP SP/PLAT YR .~DCSTI) CODE H OWNER % ~00 MID Y~U. AR HMSTD CODE MV TAX VALUE QUALIFYING LAND QUALIFYING BLDG PAGE 1 MORE NEXT = 02 .00 1,368 1,368 136,800 43,200 93,600 TDTRL P. 02 Doresky Ken From: Sent: To: Subject: Paul Sandvik [pds02-t~'at~3o.com] WeOnesOay, November 05, 2003 4:50 PM Doresky Ken; Tamara Doolittie 7601 Bass Lake RC In regards tc the value of the property located at 7601 Bass Lake Rd, the appraisal done by Gregory.' V. Ca!laban for $220,000 was completed on October 20, 2003 and is current as of that date. This is a current full market value appraisal based on current sales activity. The 2003 assessed market value for property tax purposes is 5160,000 and is assessed as of January 2nd 2003. The county uses a target ratio of 95% of va[ue as indicated by the sales that occurred during our sales study period. For the 2003 assessment our sales study period was from October 1st, 2001 to September 30th 2002. Therefore some of the sales used to set the market value for the 2003 assessment are now two years old. If there is any further questions please let me know. Paul Sandvik - Assessor A 2103 Henn. Cry. Govt. Cir. Mpls, MN 55487 Assessor's Office 612-348-3046 Direct - (work cell) 612-802-8761 Do you Yahoo!? Protect your identity with Yahoo! Mail AddressGuard ht:P://antlspam.yahoo.com/whatsnewfree ~ Var. am Le~ ~ ~ar~ .ar~ng ~ No~ v~ con.~ ~ e issue City of New HoDe 7 d site N~ Developmen~ Fmmewo~r PLANNING DIS.7'RIC TS 13 Base Map: Bone~lmo Roeene Am:le~ & June 19g~ SCALE IN FEET Planning Distnct~ PLANNING DISTRICT 6 This district's borders are Winnetka Avenue to the west, the C.P. Rail System to the south, and Crystal to the east and north, with a jagged northern border. District 6 is primarily Iow density residential with areas of multi-family residential and commercial development scattered along Bass Lake Road. The following recommendations are offered for Planning District 6. The Iow density residential neighborhoods in District 6 are generally in good condition, however, two Iow density redevelopment target areas have been identified within Planning District 6. In addressing' the Iow~--. density residential land uses in District 6, the following recommendations are made: Co do The City will aggressively promote private reinvestment in the existing single family housing, through housing renovation seminars and programs, and the through the enforcement of the Point of Sale Housing Maintenance Code. Scattered site housing renovation and redevelopment will be pursued on selected lots within District 6. The City has targeted the Iow density residential area along Bass Lake Road and the Bass Lake Road extension. This area is characterized by small homes in marginal condition on large lots. The City will seek to acquire and redevelop these sites as new Iow to medium density residential land uses. A second Iow density residential area targeted for redevelopment consists of a number of very deep lots along Winnetka Avenue between Bass Lake Road and 53rd Avenue. The redevelopment of this area is intended to alleviate poor housing conditions, improve access onto Winnetka and more fully utilize the available land. 89 Com~..e.h_,e_n_~_i_ve .Plan Ulodate Development Frarr~work