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102599 EDA CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North October 25, 1999 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Collier Commissioner Pat LaVine Norby Commissioner Mark Thompson 1. Call to Order 2. Roll Call 3. Approval of Regular Meeting Minutes of October 11, 1999 4. Resolution Approving the Cooper Gym Expansion Development Agreement and Facility Use Agreement (Improvement Project No. 662) 5. Discussion Regarding Property at 5550 Winnetka Avenue North and Other Properties on East Side of Winnetka Between 5340 and 5550 Winnetka 6. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 Approved EDA Minutes October 11, 1999 Regular Meeting City Hall CALL TO ORDER President Pro tern Norby called the meeting of the Economic Development Authority to order at 8:56 p.m. ROLL CALL Present: Pat LaVine Norby, President Pro tem Sharon Cassen, Commissioner Don Collier, Commissioner Mark Thompson, Commissioner Absent: W. Peter Enck, President APPROVE MINUTES Motion was made by Commissioner Thompson, seconded by Commissioner Cassen, to approve the Regular Meeting Minutes of July 26, 1999. Al1 present voted in favor. Motion carried. THREE-CITY President Pro tem Norby introduced for discussion Item 4, Motion Approving the PUBLICATION Twin Cities Business Monthly Three-City Publication Proposal. PROPOSAL Item 4 Ms. Sue Henry, Community Development Specialist, explained that staff was recently approached by representatives of Twin Cities Business Monthly regarding a promotional insert for their publication. After consideration staff determined a promotional piece would benefit the City. Due to the cost of such a publication staff explored a collaborative effort with Crystal and Robbinsdale. The publication would focus on business recruitment, with an emphasis on increasing interest and enthusiasm for the benefits of relocating, building, or expanding a business within the three-city area. It would be a high quality 12-page section in a magazine with circulation of 37,000. The cost for each participating city is $5,000. Also, staff recommends an expenditure of $2,000 for custom reprints of the information pertaining to New Hope. Ms. Henry stated the City of Robbinsdale has approved the joint venture and the City of Crystal will be considering the item at its meeting of October 19. Commissioner Cassen expressed support for the project and the benefits of promoting the business/industrial areas. However, she commented that a one time publication may not be sufficient. She suggested that staff obtain a quote of re-print costs in subsequent editions of the magazine. The advantages of a promotional insert highlighting the three cities versus the entire northwest area was discussed. President Pro tern Norby noted the expense is low compared the cost of a newspaper ad such as the Minneapolis Star Tribune. New Hope EDA October 11, 1999 Page 1 MOTION Motion was made by Commissioner Cassen, seconded by President Pro tem Item 4 Norby, to approve the expenditure for the Twin Cities Business Monthly three-city publication proposal. All present voted in favor. Motion carried. RESIDENT GUIDE President Pro tem Norby introduced for discussion Item 5, Discussion Regarding AND BUSINESS 2000 Resident Guide and Business Directory. DIRECTORY (IMP. PROJECT 666) Ms. Sue Henry, Commtmity Development Specialist, reported that the City Item 5 produced the first Resident Guide and Business Directory in 1998. This was a very well received publication and had a shelf life of two years. Staff would now like to produce a year 2000 guide. The approximate cost to the City is $9,000 which includes information updating, production costs, and direct delivery to businesses and residents. The EDA unanimously expressed support of the directory. Ms. Henry indicated a formal contract would be prepared for consideration at the November 8 EDA Meeting. MOTION Motion was made by Commissioner Cassen, seconded by Commissioner Item 5 Thompson, authorizing proceeding with the publication of a year 2000 Resident Guide and Business Directory. All present voted in favor. Motion carried. ADJOURNMENT Motion was made by Commissioner Collier, seconded by Commissioner Thompson, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 9:22 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA October 11, 1999 Page 2 IIII IIII I ~.u~ II I II Originating Department Approved for Agenda Agenda Section Community Development, ~-'~ 10/25/99 EDA Parks & Recreation Item No. By: Kirk McDonald, Shari French By:. 4 / RESOLUTION APPROVING THE COOPER GYM EXPANSION DEVELOPMENT AGREEMENT AND FACILITY USE AGREEMENT (IMPROVEMENT PROJECT//662) ACTION REQUESTED Staff requests that the EDA approve the attached resolution approving the Cooper Gym Expansion Development Agreement and Facility Use Agreement, which was prepared by the City Attorney. Final draft copies of each of the Agreements are also enclosed. POLICY/PAST PRACTICE The EDA's direction to the staff in the past has been to prepare Development and Facility Use Agreements that outline the terms and conditions under which the City and School District will participate in this project. BACKGROUND In April, the City Council met with representatives of the School District at a City Council Worksession to discuss options to add gyms to Cooper High School, after staff had met with District representatives earlier in the year to discuss community/school district needs and design options. The Council was favorable toward the proposal and directed that a public hearing be scheduled to consider modifying the redevelopment and tax increment financing plans to include the Cooper High School property in an ama where tax increment financing (TIF) funds could be utilized for community center and recreational purposes. On June 28th, said public hearing was conducted and the Council and EDA approved resolutions modifying the redevelopment and tax increment financing plans to allow the expenditure of up to $3.25 million on the Cooper gyms expansion project, which also includes the reconstruction of tennis courts on the site with costs being prorated between the two entities. The approval of the resolutions authorized the use of TIF funds for the project, but did not commit the City to the project. Prior to a financial commitment, two additional steps needed to be taken: 1. Approval of the plans and zoning code approval for the expansionl and 2. The appropriate agreements needed to be drafted. III II I I I RFA-O01 Request For Action Page 2 In July, the plans were reviewed by the Planning Commission and the Commission recommended approval of the conditional use permit amendment request to the City Council. On August 9t', the City Council accepted the recommendation from the Commission and approved the plans and the CUP amendment request. Subsequent to the approval, staff and the City Attorney have been coordinating with the School District on the appropriate agreements. One of the issues that the City Council wanted addressed prior to consideration of the Cooper Gyms Agreement was the Ice Arena Rental Agreement. The School District approved an agreement acceptable to the City on October 4th, and the City Council approved the agreement on October 11t'. With all of the above steps being completed, the EDA is now being requested to approve the final two agreements for the Cooper gyms project. Per the City Attorney's correspondence, the agreements outline the City/EDA's intent to provide Independent School District No. 281 with a $3,250,000 grant, primarily for the addition of new gyms at Cooper High School. In consideration for the contribution, the School District will provide the City with priority use of the gym facilities. The agreements are further defined by the City Attorney as follows: DEVELOPMENT AGREEMENT The Development Agreement sets forth the terms and conditions under which the $3.25 million grant will be disbursed to the School District during the construction phase of the project. The Development Agreement indicates that so long as the project is constructed in accordance with the construction contract and plans approved by the City and the Facility Use Agreement is signed by the School District, the School District will not be required to repay any portion of the grant. Also, the Development Agreement limits the City's contribution to no more than $3.25 million and from that amount, the City will pay for all of its engineering and legal costs, bond issuance costs, concession room equipment costs, and music equipment and sound system costs which will be incorporated into the project. FACILITY USE AGREEMENT The Facility Use Agreement sets forth the City's right to use the expanded gym facility for a 40-year term. Section 1.03 of the Facility Use Agreement describes how the City will be able to use the facility. The City will have the primary use of the facility during those times that school is not in session. This will be primarily on school days from 5:30 p.m. until 6:00 a.m. and at all times on Saturdays, Sundays and summer vacations. The Facility Use Agreement also sets forth a repayment schedule in Section 5.02 in the event the School District terminated this agreement prior to the expiration of its 40-year term. The 40- year term is established by Section 1.02 of the Agreement. This length of time was used in that 40 years is considered the economic life of the facility for accounting purposes. The City Attorney and Director of Parks and Recreation will be present at the EDA meeting to review the Agreements in more detail and answer questions. A representative from the School District will also be present. Staff recommends approval of the resolution approving the Agreements. ATTACHMENTS Resolution October 19t' City Attorney correspondence Development Agreement Facility Use Agreement JENSEN SWANSON & SONDRALL, P.A. :'- : ,,-'~,: ~ ~ Attorneys At Law ~ i. [ k.. 8525 EDINBROOK CROSSING STE. 201 "~"~' ~ !-- BROOKLYN PARK, MINNESOTA 55443-1999 TELEPHONE (612) 424-8811 · TELEFAX (612) 493-5193 E-MAIL jss~jsspa.com GORDON L. JENSEN* WILLIAM G. SWANSON STEVEN A. SONDRALL MARTIN P. MALECHA C. ALDEN PEARSON~f JULtE A. THILL OF COUNSEL October 19, 1999 LORENS Q. BRYNESTAD Kirk McDonald Community Development Director City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Re: Cooper Gym Expansion Development Agreement and Facility Use Agreement Our File No.: 99.11231 Dear Kirk: Please find enclosed for consideration at the October 25, 1999 Council and EDA meetings two proposed Resolutions Approving the Cooper Gym Expansion Development Agreement and Facility Use Agreement. Also enclosed are proposed drafts of each agreement. As you know, it is the City/EDA's intent to provide the Independent School District No. 281 with a $3,250,000 grant for the expansion of the Cooper High School Gym. It is my understanding these dollars will come from the City/EDA's existing tax increment financing funds. In consideration for the City's contribution, Independent School District No. 281 will provide the City with a priority use of the expanded Cooper Gym pursuant to the terms of the Facility Use Agreement being approved by the enclosed Resolution. Basically, the Development Agreement sets forth the terms and conditions under which the $3.25 Million grant will be disbursed to the School District during the construction phase of the project. The Development Agreement indicates that as long as the project is constructed in accordance with the construction contract and plans approved by the City and the Facility Use Agreement is signed by the School District, the School District will not be required to repay any portion of the grant. Also, the Development Agreement limits the City's contribution to no more than $3.25 Million and from that amount, the City will pay for all of its engineering and legal costs, bond issuance costs, concession room equipment costs, and music equipment and sound system costs which will be incorporated into the project. *Real Property Law Speciali~ Certified By The Minnesota State Bar Association ~-Qualifi~:l ADR Neutral October 19, 1999 Page 2 The Facility Use Agreement sets forth the City's right to use the expanded gym facility for a 40 year term. Section 1.03 of the Facility Use Agreement describes how the City will be able to use the facility. Basically, the City will have the primary use of the facility during those times that school is not in session. This will be primarily on school days from 5:30 p.m. until 6:00 a.m. and at all times on Saturdays, Sundays and summer vacations. The Facility Use Agreement also sets forth a repayment schedule in Section 5.02 in the event the School District terminated this agreement prior to the expiration of its 40 year term. The 40 year term is established by Section 1.02 of the Agreement. This length of time was used in that 40 years is considered the economic life of the facility for accounting purposes. If you have any questions or comments regarding the Resolution, the enclosed documents or this letter, please contact me. Very truly yours, Steven A. Sondrall JENSEN SWANSON & SONDRALL, P.A. Enclosures cc: Shari French Dan Donahue Valerie Leone CNH 11231-01-Kirk Ltr.wpd EDA RESOLUTION NO. 99- RESOLUTION APPROVING THE COOPER GYM EXPANSION DEVELOPMENT AGREEMENT AND FACILITY USE AGREEMENT BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, the Economic Development Authority in and for the City of New Hope (hereafter "EDA") and the City of New Hope (hereafter "City") both adopted resolutions at their respective June 28, 1999 meetings approving a 1999 amendment to the Master Modification to Redevelopment Plans and Tax Increment Financing Plans initially approved on July 25, 1994, and WHEREAS, the purpose of the 1999 amendment was to allow for the payment of public redevelopment costs of the City and EDA for construction of a gym addition/expansion to Cooper High School located at 8230 - 47th Avenue North in the City of New Hope with tax increment revenue to be derived from the EDA's TIF districts, and WHEREAS, the City and EDA have agreed to contribute an amount not greater than $3,250,000 to the Independent School District No. 281 (hereafter "ISD 281 ") for construction by ISD 281 of a gym expansion at Cooper High School, and WHEREAS, in consideration for this financial contribution by the City and EDA, ISD 281 will agree to enter into a Cooper Gym Expansion Development Agreement (attached hereto as Exhibit A) and a Facility Use Agreement (attached hereto as Exhibit B), and WHEREAS, the Cooper Gym Expansion Development Agreement sets forth the terms and conditions regarding the manner in which the $3.25 Million TIF fund will be used to construct the gym expansion project and the Facility Use Agreement sets forth the manner in which the City will be permitted to use the gym expansion during certain periods when it is not in use for school purposes, and WHEREAS, the respective bodies of the City, EDA and ISD 281 have reviewed Exhibits A and B attached to this Resolution and have determined that the attached exhibits accurately set forth the understanding and agreements between the respective parties. NOW, THEREFORE, BE IT RESOLVED: -1- 1. The Board of Commissioners of the Economic Development Authority in and for the City of New Hope hereby approves the Cooper Gym Expansion Development Agreement and the Facility Use Agreement attached hereto as Exhibits A and B. 2. That the President and Executive Director are hereby authorized and directed to sign the documems and that the Executive Director is hereby authorized and directed to take all necessary steps to implemem the terms and conditions of the Cooper Gym Expansion Development Agreemem and the Facility Use Agreemem. Dated the __ day of ,199 W. Peter Enck, President Attest: Daniel J. Donahue, Executive Director -2- This redIined dra~, generated by CompareRite - The Instant Redliner, shows the differences between - original document : F:~DocLrM'NTSUDCARP£N',AGMT RE~,9~5203!.WPD and revised document: F:~)OCUMNTSUDCARPEN~GM~'_R.~9#5204!.WPD CompareRite found 21 change(s) in the text CompareP0te found 3 cha~ge(s) in the notes Deletions appear as struck-through te.~t Additions appear a~ bold+dbl underlined text COOPER GYM EXPANSION DEVELOPMENT AGREEMENT THIS AGREEMENT is made and entered into on ,1999, by and between INDEPENDENT SCHOOL DISTRICT NO. 281, an independent school district created and existing under the laws of the State of Minnesota (hereinafter referred to as "ISD 281"), with its principal place of business located at Education Service Center, 4148 Winnetka Avenue North, New Hope, MN 55427-1288, the CITY OF NEW HOPE, a Minnesota Municipal Corporation (hereinafter referred to as "City") and the ECONOMIC DEVELOPMENT AUTHORITY in and for the City of New Hope, a Minnesota municipal corporation (hereinafter referred to as "EDA") with their principal place of business located at 4401 Xylon Avenue North, New Hope, MN 55428. RECITALS WHEREAS, the EDA and the City both adopted resolutions at their respective June 28, 1999 meetings approving a 1999 amendment to the Master Modification To Redevelopment Plans and Tax Increment Financing Plans initially approved on July 25, 1994; and WHEREAS, the purpose of the 1999 amendment is to allow for the payment of public redevelopment costs of the City and EDA for construction of a gym addition/expansion to Cooper High School located at 8230 - 47th Avenue North in the City of New Hope with tax increment revenue to be derived from the EDA's TIF Districts; and WHEREAS, the City and EDA have agreed to contribute an amount not greater than $3,250,000.00 to ISD 281 for construction by ISD 281 of a gym expansion and tennis court addition at Cooper High School in accordaiic¢ with , together with certain related site improvement and other work (collectively, the "Project"), all as more fully described and set forth in the plans and specifications attached hereto as Exhibit A (together with any and all exhibits, amendments, modifications and change orders theretO, collectively referred to herein as the "Plans"); and WHEREAS, in consideration for this financial contribution by the City and EDA, ISD 281 agrees to enter into a Facility Use Agreement with the City, in the form attached as Exhibit B (the "Facility Use Agreement") permitting the City to have primary use of the gym expansion during certain periods when the gym expansion is not in use for school purposes as set forth in the Facility Use Agreement; and WHEREAS, in further consideration for the City's and EDA's financial contribution, ISD 281 agrees to use the funds and construct the gym addition/expansion in accordance with the terms and conditions of this Cooper Gym Expansion Development Agreement. ARTICLE I Definitions Section 1.01 Defined Terms. As used in this Agreement, the following terms shall have the meanings set out respectively after each (such meanings to be equally applicable to both the singular and plural forms of the terms defined): (a) "Advance" - In each instance, an advance made or to be made by the City and/or EDA to ISD 281 pursuant to Article II hereof. (b) "Architect" - Wold Architects and Engineers, which will administer the Construction Contract Documents. (c) "Completion Date" - June 1, 2001 (unless ISD 281 shall extend such date in writing, then the Completion Date shall be such later date), being the date of required completion of the Project. (d) "Construction Contract" - The construction contract to be entered into between ISD 281 and the General Contractor regarding the construction of the Project. (e) "Construction Contract Documents" - The document or documents, including without limitation the Construction Contract and the Plans, which, together with any and all exhibits, amendments, modifications and change orders thereto, collectively form the contract or contracts between ISD 281 and the General Contractor concerning construction and/or rehabilitation of the Project. (f') "Contribution Amount" - This term shall have the meaning ascribed to it in Section 2.01 below. (g) "Draw Requisition" - The draw requisition, in the form attached hereto as Exhibit C, which is to be submitted to the City when an Advance is requested, and which is referred to in Section 2.02 hereof. (h) "Engineer" - KARGES-FAULCONBRIDGE, INC., a Minnesota corporation. (i) "Event of Default (Ci _ty/EDA)" - One of the events of default specified in Section 6.01 (b) hereof. (-i-)(i) "Event of Default (ISD 281)" - One of the events of default specified in Section 6.01 (a) hereof. (:j-)(k) "Facili _ty Use Agreement" - This term shall have the meaning ascribed to it in the Recitals above. (-k-)fl) "General Contractor" - The person or entity selected by ISD 281 to serve as the general contractor for the Project. (+)(m) "Inspecting Official" - The City Building Official or City Engineer, Bonestroo, Rosene, Anderlik & Associates. fin)Lo) "Plans" - This term shall have the meaning ascribed to it in the Recitals above. ~ JO~lO.,(o) "Project" - This term shall have the meaning ascribed to it in the Recitals above. O:O(~.__~) "Real Estate" - The land upon which the Project is located, described on Exhibit D attached hereto, commonly known as Cooper High School located in the City of New Hope. (p-)(?_}) "Subcontractor" - Any person, other than the General Contractor, who shall be engaged to work on, or to furnish materials and supplies for, the Project. ARTICLE II Commitment to Make Contribution Section 2.01 City Contribution/Cost Sharing. The City and EDA agree, subject to the conditions hereinafter set forth, to contribute to ISD 281 in an aggregate principal amount not to exceed Three Million Two Hundred Fifty Thousand ($3,250,000.00) (the "Contribution Amount") for construction of the Project. ISD 281 shall not be obligated to repay the City or EDA any portion of this contribution if the Project is completed substantially in accordance with the Plans and the Facility Use Agreement is entered into by the parties, subject only to the obligation of ISD 281 to pay the Termination Fee in the event of any termination of the Facility. Use Agreement in accordance with Section 5.02(b) thereof. The total construction cost for the Project is estimated at $ The parties will share the Project costs as set forth in the Project Cost Sharing Schedule attached hereto as Exhibit E. Not withstanding this agreement to share construction costs, in no event will the City be required to contribute more than the Contribution Amount to the cost for the Project. ISD 281 also acknowledges and agrees that the City's costs for those items described in Section 2.01(a) below will be paid from and included as part of the Contribution Amount. ISD 281 further acknowledges and agrees that the costs of ISD 281 for purchase of equipment described in Section 2.01 (b) below shall not be paid from the Contribution Amount. The net effect of this cost sharing provision is that the entire Contribution Amount will not be available to ISD 281 solely for construction costs, but will additionally include those costs described in Section 2.01 (a) below. (a) Ci _ty's Costs. ISD 281 acknowledges and agrees the City intends to sell bonds to finance the Contribution Amount. ISD 281 further acknowledges and agrees the City intends to make equipment purchases for (i) the concession room to be constructed as part of the Project, and (ii) a music/sound system to be installed as part of the Project. As herein agreed, these costs will be paid from the Contribution Amount. The City's costs to be funded fi.om the Contribution Amount are estimated as follows: (i) general engineering and legal costs - $25,000.00 (ii) bond issuance costs - $75,000.00 (including consultant and bond attorney fees) (iii) all concession room equipment (coolers, freezers, cookers, pop machine, etc.) -$10,000.00 (iv) music equipment/sound system - $5,000.00 The parties agree the referenced costs are estimated and that the actual costs incurred by the City will be controlling to determine the remaining Contribution Amount available to ISD 281 for construction costs. (b) ISD 281 Excluded Costs. ISD 281 further acknowledges and agrees that its costs for the following items will not be funded from the Contribution Amount: (i) Volleyball standards and nets (ii) All tennis nets, wind screens, poles, flags and bleachers for tennis courts (iii) All equipment needed for the ball fields including but not limited to bleachers and scoreboards Section 2.02 Draw Requisitions. Whenever ISD 281 requires an advance hereunder, which shall be no more often than monthly, ISD 281 shall submit to the City a Draw Requisition, duly completed and executed on behalf of the ISD 281, setting forth the information requested therein. Each Draw Requisition shall be certified as true and accurate by the Architect relative to the percentage of work completed on which payment is requested. Each Draw Requisition with respect to construction items shall be limited to amounts equal to (i) the amount of work actually completed, plus (ii) the value of materials and equipment not incorporated in the Project, but delivered and suitably stored on or off the Project site in a manner reasonably acceptable to City, less (iii) any retainage required under the Construction Contract (in an amount not less than five percent (5%) of the contract amount, or portion thereof (except as to Draw Requisitions to fund the retainage in accordance with the Construction Contract)), and (iv) less prior Advances, to the extent such prior Advances consisted of prepayments of any of the foregoing. At the time of submission of each Draw Requisition, ISD 281 shall submit to the City the following: (a) A waiver of mechanic's lien and/or materialman's lien, executed by the General Contractor in the amount of the lienable costs of the Project payable from the requested advance, together with a waiver of mechanic's lien and/or materialman's lien, executed by each Subcontractor, to which any portion of the immediately preceding Advance ("Prior Advance"), if any, was paid, covering liens for all work done and materials supplied for which disbursement was made from the Prior Advance, in the form reasonably required by the City. (b) Such other supporting evidence as may be reasonably requested by the City to substantiate all payments which are to be made out of the relevant Draw Requisition and/or to substantiate all payments then made with respect to the Project. (c) Satisfactory evidence that all work then requiring inspection by municipal or other governmental authorities having jurisdiction has been duly inspected and approved by such jurisdiction, and that all then required certificates of occupancy and other approvals by municipal or other governmental authorities having jurisdiction have been issued. If on the date an Advance is desired, ISD 281 has performed all of its agreements and complied with all requirements therefore to be performed or complied with hereunder, and the Inspecting Official approves the relevant Draw Requisition, which approval shall not be unreasonably withheld, the City shall disburse such funds directly to ISD 281 on such date. If the Inspecting Official does not so approve the Draw Requisition, the Draw Requisition shall nevertheless be deemed approved in the event the City fails to notify ISD 281 in writing of the reason for such disapproval within five (5) business days of either the City's receipt of the Draw Requisition. Section 2.03 City Inspections. City shall have the right but not the obligation, and solely for its own protection, to make such inspections of the improvements as it deems advisable. ISD 281 acknowledges that it does not and shall not reply upon any inspections which City may make pursuant hereto. City and its agents, inspectors, and employees may enter upon the Real Estate at any reasonable time to inspect the progress of construction. City is not responsible for seeing that the improvements are constructed in accordance with the Plans, that the improvements contemplated under the Construction Contract Documents will be completed, that sufficient funds will be available for completion, or that the design, engineering details, or architectural features are adequate or appropriate. City shall also not be required to provide architectural supervision of construction or any services related to construction quality control or judgment. All inspections by, or on behalf of, the City in accordance with this Section 2.03 shall be at the City's sole cost and expense, payment for which shall be in addition to, and not as part of, the amount of the Contribution Amount. Section 2.04 Advances Without Receipt of Draw Requisition. Notwithstanding anything herein to the contrary, the City shall have the irrevocable right at any time and from time to time, to apply funds which it agrees to advance hereunder to pay any and all of the expenses referred to in Section 7.04 hereof, all without receipt of a Draw Requisition for funds from ISD 281. ARTICLE III Conditions of Funding Section 3.01 Condition Precedent to Any Advance. The obligation of the City to approve Advances hereunder shall be subject to the condition precedent that it shall have received the following on or before the date of the initial draw request: (a) The Plans. (b) A copy of the fully executed Construction Contract Documents, with such contracts being reasonably acceptable to the City. (c) A sworn construction statement duly executed on behalf of ISD 281, in form and substance reasonably satisfactory to the City, showing all incurred and anticipated costs and expenses for construction of the Project. (d) Evidence reasonably satisfactory to the City that all then required permits have been obtained. (e) Copies of, or binders for the delivery of, or certificates evidencing, the policy of fire and extended coverage and comprehensive general liability insurance required under Section 5.01 (c) hereof, with all such insurance in full force and effect. (f) The Facility Use Agreement duly executed by ISD 281. (g) Any and all such other documents and agreements which City deems reasonably necessary to establish that there are sufficient additional funds, after giving effect to the City's Advance and in addition to the remainder of the Contribution Amount, to pay for the unfunded portion of the work remaining to be performed under the Construction Contract Documents. Section 3.02 Further Conditions Precedent to Any Advance. The obligation of the City to make any Advance hereunder shall also be subject to the following conditions precedent: (a) No Event of Default (ISD 281) hereunder, or event which would constitute such an Event of Default (ISD 281) but for the requirement that notice be given or that a period of grace or time elapse, shall have occurred and be continuing. ARTICLE IV Representations and Warranties Section 4.01 Representations and Warranties oflSD 281. ISD 281 represents and warrants as follows: (a) The execution of this Agreement, the Facility Use Agreement and any and all other documents referred to herein to which ISD 281 is a party, are within the powers oflSD 281 and do not violate any provision of law to which ISD 281 is subject. (b) This Agreement, the Facility Use Agreement and any and all other documents referred to herein to which ISD 281 is a party, are the legal, valid and binding obligations of ISD 281 enforceable against ISD 281 in accordance with their respective terms. (c) ISD 281 has title to the Real Estate. (d) The Project will be constructed substantially in accordance with the Construction Contract Documents, will be constructed entirely on the Real Estate, and will not encroach upon or overhang any easement right-of-way of land not constituting part of the Real Estate. (e) The Project and the contemplated use thereof, both during construction and at the time of completion, will not violate any applicable zoning or use statute, ordinance, building code, rule or regulation, or any covenant or agreement of record. (f) ISD 281 agrees that it will furnish from time to time such satisfactory evidence regarding the representations and warranties described herein as may be required by the City. Section 4.02 Representations and Warranties of the City and EDA. The City and EDA do each represent and warrant as follows: (a) The execution of this Agreement, the Facility Use Agreement and any and all other documents referred to herein to which either or both the City and EDA are a party, are within the powers of the City and EDA and do not violate any provision of law to which either or both the City and EDA are subject. (b) This Agreement, the Facility Use Agreement and any and all other documents referred to herein to which either or both the City and EDA are a party, are the legal, valid and binding obligations of the City and EDA, as applicable, enforceable against the City and EDA, as applicable, in accordance with their respective terms. ARTICLE V Additional Covenants Section 5.01 Covenants of ISD 281. ISD 281 agrees that: (a) ISD 281 will cause construction of the Project to commence, and thereafter will cause the Contractor or Contractors to diligently proceed with construction of the Project according to the Construction Contract Documents, so that the Project can be completed by the Completion Date. ISD 281 further agrees to provide all funds required over and above the Contribution Amount to the extent such additional funds should be necessary to complete the construction of the Project. (b) ISD 281 will comply with the Uniform Municipal Contracting Law, as enacted in the State of Minnesota, in letting contracts and expending public funds on this project. Also ISD 281 will require the General Contractor to comply with all rules, regulations, ordinances and laws bearing on its conduct of work on the Project. (c) ISD 281 will provide and maintain at all times during the process of building the Project, and, from time to time at the request of the City, furnish the City with proof of payment of premiums on, the following insurance: (i) fire and extended coverage, in an amount equal to the lesser of the aggregate amount of the City's Advances or the full insurable value of the Project, with the City named as loss payee, and to include an overlap endorsement or rider covering the risk of any rehabilitation work; (ii) comprehensive general liability insurance, including the City as a named insured, with limits against bodily injury and property damage in an amount greater than or equal to the limits ISD 28 l's statutory immunity under Minnesota law; The policies of insurance required pursuant to Sections 5.01 (c)(i) and (ii) hereinabove (A) shall be in form and content reasonably satisfactory to the City, and (B) shall be placed with financially sound and reputable insurers licensed to transact business in the State of Minnesota. The policy of insurance delivered pursuant to Section 5.01 (c)(i) hereinabove shall contain an agreement of the insurer to give not less than ten (10) days advance written notice to the City in the event of cancellation of such policy or change affecting the coverage thereunder. (d) ISD 281 will cause the General Contractor to maintain at all times during the process of building the Project, and, from time to time at the request of the City, cause the General Contractor to furnish the City with proof of payment of premiums on, the following insurance: (i) comprehensive general liability insurance, including the City and ISD 281 as a named insured, with limits (i) against bodily injury of not less than $1,000,000, and (ii) against property damage of not less than $250,000 (to P:~At torne). ~SAS~oc'~ments~Cooper C0'm Exl~nsion D~'elq)ment Apeement~ ~ Oclobet 2 I. 1999 accomplish the above-required limits, an umbrella excess liability policy may be used); and (ii) workmeffs compensation insurance, with statutory coverage. The policy of insurance required pursuant to Section 5.01 (d)(i) hereinabove (A) shall be in form and content reasonably satisfactory to the City, and (B) shall be placed with a financially sound and reputable insurer licensed to transact business in the State of Minnesota. Acceptance by the City of an insurance policy delivered pursuant to Section 5.01 (d)(i) hereinabove shall not bar lSD 281 from requiring additional insurance which it reasonably deems necessary. (e) ISD 281 will permit the City, acting by and through its officers, employees and agents, to examine all books, records, contracts, plans, drawings, permits, bills and statements of account pertaining to the Project and to make extracts therefrom and copies thereof. (f) ISD 281 will furnish to the City, as soon as possible and in any event within ten (10) days after I SD 281 has obtained actual knowledge thereof, written notice of the occurrence of each Event of Default (ISD 281), or each event which with the giving of notice or lapse of time or both would constitute an Event of Default (ISD 281), which is continuing on the date of such statement, the statement oflSD 281 setting forth details of such Event of Default (ISD 281) or event and the action which ISD 281 proposes to take with respect thereto. (g) ISD 281 agrees that, without the prior written consent of the City, it will not agree or consent to any material changes in the Construction Contract Documents, or to any change orders thereto, individually exceeding $25,000.00 without the consent of City, which consent will not be unreasonably withheld. Any change orders not exceeding $25,000.00, approved without the prior consent of the City will be presented to the City for review as soon as practicable after its approval by ISD 281; provided, however, the City shall have no right to object to the form or content thereof. Section 5.02 Covenants of the City and EDA. The City and EDA agree that: (a) The City and EDA will furnish to ISD 281, as soon as possible and in any event within ten (10) days after either or both the City and EDA have obtained actual knowledge thereof, written notice of the occurrence of each Event of Default (City/EDA), or each event which with the giving of notice or lapse of time or both would constitute an Event of Default (City/EDA), which is continuing on the date of such statement, the statement of the City and EDA setting forth details of such Event of Default (City/EDA) or event and the action which the City and EDA propose to take with respect thereto. ARTICLE VI Events of Default and Rights and Remedies Section 6.01 Events of Default. (a) ISD 281 Events of Default. The following shall constitute Events of Default (ISD 281): (i) ISD 281 shall fail to duly observe or perform any of the material terms, conditions, covenants, or agreements required to be observed or performed by ISD 281 hereunder, and such failure shall continue uninterrupted and without cure for a period of thirty (30) days after delivery of written notice of default to ISD 281. (ii) Any representation or warranty made by ISD 281 herein, or in any financial statement, certificate, report or Draw Requisition furnished pursuant to this Agreement, or in order to induce the City to approve any Advance hereunder, shall prove to have been untrue in any material respect or materially misleading as of the time such representation or warranty was made. (iii) The Project is materially damaged or destroyed by fire or other casualty and the loss, in the reasonable judgment of the City, is not adequately covered by insurance actually collected or in the process of collection. (iv) The construction of the Project is abandoned, or shall be unreasonably delayed beyond the Completion Date (subject to such extensions as may be permitted in accordance with the Construction Contract Documents), or shall be discontinued for a period of twenty (20) consecutive calendar days, in each instance for reasons other than acts of God, fire, storm, strikes, blackouts, labor difficulties, riots, inability to obtain materials, equipment or labor, governmental restrictions or any similar cause over which ISD 281 is unable to exercise control. (v) The Project is not substantially completed in accordance with the Plans or Construction Contract Documents. (b) City/EDA Events of Default. The following shall constitute Events of Default (City/EDA): (i) Either or both the City and the EDA shall fail to duly observe or perform any of the material terms, conditions, covenants, or agreements required to be observed or performed by either or both the City and the EDA hereunder, and such failure shall continue uninterrupted and without cure for a period of thirty (30) days after delivery of written notice of default to the City and the EDA. (ii) Any representation or warranty made by the City or EDA herein, or in any financial statement, certificate, or report furnished pursuant to this Agreement shall prove to have p:~Au,n~..~ A_~:)<~mments\C~o~r C.~m F-x'pan~ion l~,~lopm~nt Agreement2 I 0 been untrue in any material respect or materially misleading as of the time such representation or warranty was made Section 6.02 Rights and Remedies. (a) Rights and Remedies Upon Event of Default (ISD 281). Upon the occurrence of an Event of Default (ISD 281) and at any time thereafter until such Event of Default (ISD 281) is cured to the reasonable satisfaction of the City, the City may, at its option, exercise any and all of the following rights and remedies, along with any other rights and remedies available to it: (i) The City may, by notice in writing to ISD 281, refrain from approving Advances hereunder (but City may make Advances after the occurrence of an Event of Default without thereby waiving its rights and remedies hereunder), or terminate this Agreement; and (ii) The City shall be entitled to recovery of reasonable costs of collection and enforcement of this Agreement, including without limitation reasonable attorneys' fees. (b) Rights and Remedies Upon Event of Default (CiW/EDA). Upon the occurrence of an Event of Default (City/EDA) and at any time thereafter until such Event of Default (City/EDA) is cured to the reasonable satisfaction of ISD 281, ISD 281 may, at its option, exercise any and all of the rights and remedies available to ISD 281 under applicable law, including without limitation the following: (i) ISD 281 shall be entitled to terminate either or both this Agreement and the Facility USe Agreement; and (ii) ISD 281 shall be entitled to recovery of reasonable costs of collection and enforcement of this Agreement, including without limitation reasonable attorneys' fees. ARTICLE VII Miscellaneous Section 7.01 Inspections. ISD 281, Architect and the A-retrite~ Engineer, shall be responsible for making inspections of the Project during the course of construction, and shall determine to their own satisfaction that the work done or materials supplied by the General Contractor and Subcontractors to whom payment is to be made out of each Advance has been properly done or supplied in accordance with the applicable contracts with such General Contractor and Subcontractors. If any work done or materials supplied by the General Contractor or a Subcontractor are not reasonably satisfactory to lSD 281 and/oi~ the Architect and/or the Engineer, or if the General Contractor or a Subcontractor does not materially comply with the Construction Contract Documents in any material respect, ISD 281 will, upon discovery thereof, promptly notify the City in writing of such fact. It is expressly understood and agreed that the City and its Inspecting Official may, at the City's sole cost and expense (and without reduction of the amount of the Contribution Amount), conduct such inspections of the Project as either may deem necessary for the protection of the City's interest, and that any inspections which may be made of the Project by the City or the Inspecting Official are made, and all certificates issued by the Inspecting Official will be issued, solely for the benefit and protection of the City, and that ISD 281 will not rely thereon. Section 7.02 Indemnification. (a) Indemnification by ISD 281. ISD 281 shall bear all loss, expense (including attorney's fees) and damage in connection with, and agrees to indemnify and hold harmless the City, its agents, servants and employees from all claims, demands and judgments made or recovered against the City, its agents, servants and employees, because of bodily injuries, including death at any time resulting therefrom, and/or because of damages to property of the City or others (including loss of use) from any cause whatsoever, arising out of, incidental to, or in connection with the construction of the Project, whether or not due to any act of omission or commission, including gross negligence, breach of statutory duty or willful misconduct oflSD 281, the General Contractor or any Subcontractor, or its or their employees, servants or agents, excluding, however, any claims, demands or judgments due to acts of omission or commission of the City, its employees, servants or agents. The obligation oflSD 281 under this Section 7.02(a) shall survive completion of the Project. (b) Indemnification by City/EDA. The City and EDA shall bear all loss, expense (including attorney's fees) and damage in connection with, and agrees to indemnify and hold harmless ISD 281, its agents, servants and employees from all claims, demands and judgments made or recovered against ISD 281, its agents, servants and employees, because of bodily injuries, including death at any time resulting therefrom, and/or because of damages to property of ISD 281 or others (including loss of use) from any cause whatsoever, arising out of, incidental to, or in connection with any act of omission or commission, including gross negligence, breach of statutory duty or willful misconduct of the City or EDA, or its or their employees, servants or agents, excluding, however, any claims, demands or judgments due to acts of omission or commission of ISD 281, its employees, servants or agents. The obligation of the City and EDA under this Section 7.02(b) shall survive completion of the Project. (c) Limitations on Indemnity. Notwithstanding Sections 7.02(a) and 7.02(b) of this Agreement, ISD 281, the City and EDA shall, and do hereby, release each other from all claims, demands, liabilities, judgments and expenses to the extent subject to and in excess of each party's limits of statutory immunity under Minnesota law, or to the extent otherwise covered, or required under this Agreement to be covered, by insurance. Section 7.03 Title to Project. Notwithstanding anything to the contrary in this Agreement or otherwise, and except only as otherwise provided in the Facility Use Agreement, title to the Project, together with any and all rights and interests, legal, equitable or otherwise, therein, shall at all times be vested solely with, in and to ISD 281. p:'~Azt orn~.~S AS~Docume nls\Caeper Gym Expansion I~-~ clopment Agr~ment2 12 21. 1999 Section 7.04 Fees. Whether or not any Advance shall be made hereunder, ISD 281 agrees to pay all fees including inspection fees, appraisal fees, survey fees, recording fees, license and permit fees and title insurance and other insurance premiums relating to the Project, all of which fees, costs and expenses shall be subject to prorata reimbursement from the Contribution Amount. Section 7.05 Addresses for Notices. All notices to be given by either party to the other hereunder shall be in writing and deemed to have been given when delivered personally or when deposited in the United States Mail, registered or certified postage prepaid, addressed as follows: To ISD 281 at: Thomas H. Walerius Independent School District 281 Education Service Center 4148 Winnetka Avenue North New Hope, MN 55427-1288 To the City and EDA at: Daniel J. Donahue, City Manager City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 or addressed to such party at such other address as such party shall hereafter furnish by notice to the other party. Section 7.06 Termination of this Agreement. The obligations of ISD 281 all parties under this Agreement, but not under the Facility Use Agreement or any other agreement(s) attached hereto or incorporated herein by reference, shall cease upon (i) payment by Cit~ of the Contribution Amount in accordance with this Agreement, and (ii) City's certification that the construction of the Project has been completed in accordance with the Plans and Construction Contract Documents. Section 7.07 Time of Essence. Time is of the essence in the performance of this Agreement. Section 7.08 Binding Effect and Assignment. This Agreement shall be binding upon and inure to the benefit of ISD 281 and the City and their respective successors and assigns. Section 7.09 Waivers. No waiver by the City or ISD 281 of any default hereunder shall operate as a waiver of any other default or of the same default on a future occasion. No delay on the part of the City or ISD 281 in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any fight or remedy preclude other or further exercise thereof or the exercise of any other fight or remedy. p:~Allom~..~A~nl~nt~\Cool~r C.~.lr, F_xpan.~On D~*elopm~nt A~m~n~2 13 Section 7.10 Remedies Cumulative. The rights and remedies herein specified of each of the City and ISD 281 are cumulative and not exclusive of any rights or remedies which either or both the City and ISD 281 would otherwise have. Section 7.11 Governing Law and Entire Agreement. This Agreement shall be governed by the laws of the State of Minnesota. This Agreement contains the entire agreement of the parties on the matters covered herein. No other agreement, statement or promise made by any party or by any employee, officer, or agent of any party that is not in writing and signed by all the parties to this Agreement shall be binding. Section7.12 Counterparts. This Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall be an original, but such counterparts shall together constitute one and the same instrument. IN WITNESS WHEREOF, the parties hereto have executed this Agreement, or caused it to be executed by their duly authorized officers or partners, as of the date first above written. CITY OF NEW HOPE INDEPENDENT SCHOOL DISTRICT No. 281 By By Its Mayor Its By. By Its City Manager Its ECONOMIC DEVELOPMENT AUTHORITY in and for the City of New Hope By Its President By. Its Executive Director STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this __ day of 1999, 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 STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this day of ,1999 by W. Peter Enck and Daniel J. Donahue, the President and Executive Director, respectively, of the Economic Development Authority in and for the City of New Hope, a Minnesota municipal corporation, on behalf of said corporation. Notary Public STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this day of ,1999 by and the and respectively, of Independent School District 281, a Minnesota , on behalf of said Notary Public P:~llom~'~AS~)~ctunen~s~,Cooper Co.m E.X'Pmmon D~a:l~t~m~l As~m~nO. 15 EXHIBIT "A" Plans [To be provided by City, EDA and ISD 281] P:~Attome~ASAS~D~un~nt~C~er C~ EX~m~on Developmem Ag~nenh2 EXHIBIT "B" Form of Facili~ Use Agreement [To be attached] P:~Au°rne~Cae~r C0m F-,q~insiofl De~pn~nt A~mment2 Oct~r 2 I. 1999 EXHIBIT "C" Form of Draw Requisition [To be provided by City and EDA] P:~At t orncy~Ab~Docun~n~s~C~ Gym .~p~on Dcs~nen~ A~cmcn~ October 2 I, 1999 EXHIBIT "D" Legal Description of Real 'Estate [To be provided by ISD 281] EXHIBIT "E" Foi-~a of Project Cost Sharing Schedule r~A g t t,,, be~L,, ...... · ~,~,~;~-J 'o-y,~,~y,~:'-' '~'. -.~_,,-~A a,~,d To~,,o~_, ~o,j~°'~ The followin able prov. ides an allocation of Project-related costs as between the City. and ISD 281: PERCENTAGE OF RESPONSIBILITY DESCRIPTION OF WORK CITY~ 1SD 281z Site Improvement: _e_ Construction, Parking and Drainage, 100% 0% Perimeter Walks, Plantiw, s alon~ 47t~ Avenue, Utilities (Sanitary, Sewer, StOrm Sewer, Water and Gas), and Related Work ~ Accessible Route to Ballfields, and 30% 70% Related Work Building Construction: ~ Gymnasium Facili .ty .(Inclusive of Code 100% 0% Upgrades)~ and Related Work Tennis Court Construction: · Construction of 7 Tennis Courts~ and 30% 70% Related Work ~The City's percentage of responsibility is as shown in this table subject only to the requirement that the City's aggregate percentage of responsibility for the entire Project shall in no event exceed the Contribution Amount. :ISD 28 l's percentage of responsibility is subject to increase for any Projected-related costs, normally allocable to the City in accordance with the City's percentage of responsibility as set forth in this table, which exceed the Contribution Amount. Expanded Fencing, Screen Planting, 30% 70% Access Paths and Drainage~ and Related Work p:~A.om~ ASXDoctm~n~Coo~r Co'm EXl~'mon D~-al~mgm A~'~menL2 .................. COMPARISON OF FOOTNOTES .................. -FOOTNOTE 1- Ci .ty's percentage of responsibili .ty is as shown in this table subject only to the requirement that the City's a~regate i~ercenta~e of responsibility for the entire Project shall in no event exceed the Contribution Amount. -FOOTNOTE 2- 281's percentage of responsibility is subject to increase for any.. Projected-related costs, normally allocable to the City. in accordance with the City's percentage of responsibility, as set forth in. this table, which exceed the Contribution Amount. .................. COMPARISON OF FOOTERS .................. -FOOTER 1- ::ODMA~PCDOCS~RIDER\438230\~r 4 October -1- 19, 1999 This recllined draft, generated by CompareR~te - The Instant Redliner, shows the difl'~ence~ between - original documem : F:'~OC UMNTSL1DC ARPEN~A. GMT_R~9~ 5 ¥03 !.WPD aha revised document: F:LDOCUMNTSLJDCAR~ENLAGMT_IL~gffsV04! CompareRite ~ound 12 change(s) in the text CompareR~te found 2 chat, ge(s) in the ~otes Deletions appear as strdck-lhrough text Additions appear as bold+dbl underlined FACILITY USE AGREEMENT AGREEMENT made this m day of ,1999 by and between the CITY OF NEW HOPE a Minnesota municipal corporation (hereinafter the ."City"), and INDEPENDENT SCHOOL DISTRICT NO. 281, an independent school district created and existing under the laws of the State of Minnesota (hereinafter "ISD 281"). RECITALS WHEREAS, ISD 281 is constructing an addition to the existing Cooper High School gymnasium, on real property legally described on Exhibit A attached hereto, which addition shall consist of a second fully enclosed gymnasium, concessions room, storage areas, rest rooms and miscellaneous other amenities, all as more fully described and set forth on that site plan attached hereto as Exhibit B (the "Site Plan") (such addition, together with all amenities therein, hereafter referred to as the "Facility"); WHEREAS, the New Hope Economic Development Authority, a Minnesota municipal corporation ("EDA"), and the City are contributing up to $3,250,000.00 towards the cost of constructing and equipping the Facility from EDA Tax Increment Financing Funds (the actual amount of such contribution hereinafter referred to as the "Contribution Amount"); WHEREAS, the parties desire to provide for joint use of the Facility; WHEREAS, this Agreement sets forth the rights and obligations of the parties relating to the joint use of the Facility; NOW, THEREFORE, the parties agree as follows: ARTICLE I Joint Use 1.01 Joint Use. The City and ISD 281 shall jointly use the Facility in accordance with the terms and conditions set forth herein. 1.02 ~enewa~ Term. This Agreement shall be for a term of forty (40) years commencing on .the date of substantial completion of the Facility and expiring on ~June 30, 2040. p:~t o~AS~Document~Cooper ~m Fa~ilily Use Agl~e~ent2 October 21. 1999 1.03 Use and Scheduling. The facility shall be used by the parties as follows: a. ISD 281 will have primary use of the Facility on school days from 6:00 a.m. until 5:30 p.m. b. The City will have primary use of the Facility on school days from 5:30 p.m. until 6:00 a.m., and at all times on Saturdays, Sundays, Summer vacation and any other day that school is not in session. c. Each party may schedule gym time during the other party's primary use, with the primary party's consent which may not be unreasonably withheld if time is available. d. The City will supervise the Facility when it has primary use of the Facility and shall hire and pay any building attendant necessary to perform such supervision. Supervision shall not include maintenance or cleaning which shall be the responsibility of the ISD 281 per Section 2.02 of this Agreement. City supervision shall only mean supervision of the activity that is being conducted by, on behalf of, or is the responsibility of the C-3ty~ City when the Facility is under City use (the "Principal Activi .ty"), together with supervision of any and all uses or activities associated with, or related to, such Principal Activi .ty, including without limitation supervision of such interior or exterior common areas and parking areas as may be used by employees or invitees of the City in connection with such Principal Activity. However, the City will be responsible for cleaning the concession room area and equipment after each use by the City. However, ISD 281 will clean the floors, walls and ceiling of the concession room area as part of general routine cleaning of the facility. Also, ISD 281 will dispose of all garbage from use of the concession room area on condition it is properly bagged and placed in a designated area for disposal as determined by ISD 281. e. The City will have reasonable access to the Facility during its primary use time. f. ISD 281 will permit the City, and its employees, agents and invitees to use the internal roadway system and schOol parking lot for access to the Facility, and the school parking lot for parking purposes, subject to ISD 28 l's reasonable rules and regulations. g. The City will have the exclusive use of the west storage space and the concession room/area as shown on the Site Plan. ISD 281 agrees it will not be permitted use of these areas without the written consent of the City. h. The City and ISD 281 shall meet at least annually to review the Facility use schedule. 1.04 Alcohol and Tobacco Policy. The Facility shall be treated as "school ground" as contemplated by the alcohol control provisions of Minn. Stat. § 624.701; that ISD 281 's alcohol and tobacco policies and regulations, and any additions or amendments thereto, shall apply to the Facility; that the area should be appropriately posted; and that the City shall withhold access from groups for alcohol or tobacco violations. ARTICLE II Ownership and Maintenance of Facility 2.01 Ownership. ISD 281 is the owner of the Facility, subject to the rights and obligations of the parties set forth in this Agreement. 2.02 Maintenance and Upk. eep. ISD 281 will be responsible for all maintenance, repairs, replacement and upkeep of the Facility necessary to keep the Facility in good repair and clean condition. However, the City acknowledges and agrees it will be responsible for all maintenance, repair and cleaning of the concession room/area and equipment after each event, referred to in Section 1.03(g) of this Agreement. ISD 281 shall only be required to clean, repair and maintain the general structure of the concession room/area including the floor, walls, ceiling, plumbing, heating and electrical to the concession room/area including the general cleaning referred to in Section 1.03(g) of this Agreement. 2.03 Operating Cost and Utilities. The School District will be responsible for all operating costs relating to the Facility, including providing and paying for all electric, heat, phone, water, sewer, trash removal and other utilities and services. ISD 281 will maintain adequate temperatures in the Facility during the City's primary use time to allow comfortable use of the Facility by the City. 2.04 Insurance. ISD 281 will at its expense insure the Facility, fixtures, furnishings, and therein against loss or damage by fire and loss or damage by such other risks now or hereafter embraced by "extended coverage," so called. However, ISD 281 shall not be required to insure the food service equipment installed by the City in the concession room/area or the sound system equipment installed in the west storage area. Each party will obtain and maintain during the term of this Agreement a comprehensive liability insurance policy in at least the amounts specified as to the extent of liability under Minn. Stat. § 466.04. ISD 281 will be named as an additional insured on the City's policy and the City will be named an individual insured on ISD 281 's policy. Each party shall furnish the other party a certificate of insurance documenting the required coverage. A ICLE III In{: ~anification 3.01 IndemnificationbylSD281.1SD281 hereby indemnifies and holds the City harmless from and against any and all claims, demands, liabilities, and expenses, including attorney's fees, arising from the ISD 281 's use of the Facility, or fro: any act permitted, or any omission to act, in or about the Facility by ISD 281, or its officers, er !oyees, independent contractors, agents, or invitees, or from any breach or default by ISD 281 ~ :his Agreement, except to the extent caused by the City's gross negligence or willful misconduct., a the event any action or proceeding shall be brought against the City by reason of any such claim, lSD 281 shall defend the same at ISD 28 l's expense by cOunsel reasonably satisfactory to the City. The provisions of this Section 3.01 shall survive any termination of this Agreement. 3.02 Indemnification by City. The City hereby indemnifies and holds ISD 281 harmless from and against any and all claims, demands, liabilities, and expenses, including attorney's fees, arising from the City's use of the Facility, or from any act permitted, or any omission to act, in or about the Facility by the City, or its officers, employees, independent contractors, agents, or invitees, or from any breach or default by the City of this Agreement, except to the extent caused by the ISD 28 l's gross negligence or willful misconduct. In the event any action or proceeding shall be brought against ISD 281 by reason of any such claim, the City shall defend the same at the City's expense by counsel reasonably satisfactory to ISD 281. The provisions of this Section 3.02 shall survive any termination of this Agreement. ARTICLE IV Dispute Resolution 4.01 If a dispute developS between the parties regarding interpretation of the rights and obligations of the parties under this Agreement, such disputes shall be referred to the next administrative level of the respective bodies who shall attempt to settle the dispute. Such referral shall continue to succeeding levels of the respective bodies until all administrative levels have been exhausted; provided, however, all such administrative levels shall be deemed to have been exhausted in the event such dispute remains unresolved in whole or in part for a period of sixty (60) days from and after the date of initial occurrence of the dispute. In the case of any dispute which also involves a material breach authorizing the nonbreaching party to exercise its rights under Section 5.01 of this Agreement, the nonbreaching party shall be entitled, but not required, to exercise its rights under Section 5.01 concurrent with any exercise of rights under this Section 4.01. If the dispute cannot be resolved in accordance with this Section 4.01, either party may (except to the extent theretofore exercised under Section 5.01 as hereinabove permitted) then exercise any and all of the rights and remedies available to such party under applicable law. ARTICLE V Termination 5.01 Termination for Cause. In the event of any m ?/al breach of any of the terms of this Agreement, the party alleging the breach may, in addition t(;. :~d not in lieu of, any other remedies available to such party under Section 4.01 of this Agreement otherwise under applicable law, seek to terminate this Agreement by giving the breaching party wq'~rren notice specifying the nature of the breach. If the breach is not remedied within thirt3~, (120) days of the date of delivery of such notice, or if additional breaches of a materially similar: :are occur within the thirty (30) day period following the date of delivery of said notice, the ps alleging the breach may send the breaching party a second written notice setting forth the time, ~ .ze and date of a meeting to discuss the breach, the time, date and place for which shall in all respect; t~e reasonable and shall specify a date not later than ten (10) days from the date of such written notice. The Superintendent for the District or his or her designee(s) and the City Manager for the City or his or her designee(s) shall attend such meeting. If the breach continues for more than thirty (30) days after the date of such meeting, the party alleging the breach may send a final written notice of termination to the breaching party terminating this Agreement effective upon the date of delivery of such notice. 5.02 Termination Without Cause. This Agreement may be terminated without cause as follows: a. Either party may terminate this Agreement prior to the award of contract to construct the Facility by giving written notice of such termination to the other. ISD 281 shall give the City ten (10) days written notice of its intent to award a contract. Any and all actual If this Agreement is terminated in acCordance with this Section 5.02(a), any and all actual out-of- pocket costs incurred by the pzu-tics -'- iii-vcsh-n¢~it in thc ..... :--' non-terminatinR party shall be paid by the terminatinR party. l-'.t uJ ~'-'~-. . .... bw. b.~. Commencinff as of calendar...~vear 2001, 1SD 281 may terminate this Agreement, effective as of June 30 of any calendar year, upon delivery to the City, on or before February 1 of such calendar year, of advance written notice of termination (an"Early Termination"). In the event of an Early Termination, lSD 281 shall, on or before the effective date of such Early Termination, pay to the City the sum of the unamortized portion of the Contribution Amount_, inclusive of interest calculated at a fixed rate of interest equal to fiv. e percent (5%.) per annum, in accordance with the Termination Fee Schedule attached hereto as Exhibit C (the T rmi ti F ) -- ' ..... :---~--- J, ¢IIIIIIIaLIUII I J.,U, 1.11U ~,.~ULILIIUkI. LIUII : .... " .............. ' ......... ~'"--' ............. City's .,,,~,..~,,,~ ~,,~., ,,,u ,~,... ,~ ,,,,~ ,~,~,,,,~,,,. Said Termination Fee shall be the sole and exclusive remedy for the Early Termination, and the City hereby waives any and all rights to specific performance, damages, or any other remedy available in equity or in law. ARTICLE VI Miscellaneous 6.01 Building Security. Upon completion of construction of the Facility, ISD 281 shall issue to the City a reasonable number of keys and/or security cards for the exterior doors to the Facility, together with any lockable interior doors thereto, if any, for which the City is entitled to access pursuant to the terms and provisions of this Agreement. On all days during which ISD 281 is entitled to priority of use in accordance with Section 1.03(al of this Agreement, ISD shall be responsible for opening up the Facility. On all days during which the City is entitled to priority of use in accordance with Section 1.03(b) of this Agreement, the City shall be responsible for opening up the Facility. The City shall at all times during the term of this Agreement be responsible for closing and securing the Facility, including without limitation securing all exterior doors to the Facility. The procedures and requirements applicable to the issuance of keys and/or security cards, and to the opening, closing and securing of the Facility, shall be in accordance with such reasonable rules and regulations as ISD 281 may issue from time to time. The City hereby agrees to indemnify and defend ISD 281 from and against any and all claims, demands, liabilities, and expenses, including attorney's fees, arising from any failure by the City to perform its responsibilities for closing and securing the Facility in accordance with this Agreement. 6.02 Relationship of Parties. The parties hereto agree that it is their intention hereby to create only the relationships of licensor and licensee, and no provision hereof, or act of either party hereunder, shall ever be construed as creating the relationship of lessor and lessee, principal and agent, or a partnership, joint venture or enterprise between the parties hereto. 6.03 Assignment. Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party. 6.04 Binding Effect. All of the covenants, conditions and agreements herein contained shall extend to, be binding upon, and inure to the benefit of the parties hereto and their respective permitted successors and assigns. 6.05 Severability. If any provisions of this Agreement shall be declared invalid or unenforceable, the remainder of this Agreement shall continue in full force and effect. 6.06 Governing Law. This Agreement shall in all respects be governed by and interpreted under the laws of the State of Minnesota. p:~Atlom~ASAShl~)ocun~n~,Coop~ ~ym Facility Use Ag~mertt2 I~ Oc~ol~r 21. 1999 IN WITNESS WHEREOF, the parties have subscribed their names as of the day and year first above written. INDEPENDENT SCHOOL DISTRICT NO. 281 By. Its By. Its CITY OF NEW HOPE By. Its Mayor By Its City Manager STATE OF MINNESOTA ) ) SSo COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this __ day of ,1999, by and , respectively the Mayor and City Manager of the City of New Hope, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public P:',.AIt o rr~-'~ AS~o~umen ~'~C o~j~e r gym Fa~ilily U~e A~menl2 ~7 STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEP1N ) The foregoing instrument was acknowledged before me this__ day of ,1999 by and , the and of Independent School District No. 281 on behalf of said independent school district. Notary Public EXHIBIT A Leeal Description [To be provided by ISD 281 ] EXHIBIT B Site Plan 13:19 FAX 6124935193 J S & S, A'F£ORNEYS ~ NEW HOPE CH ~002 ........... ~,,,~n~ ~nuu~ ~'~ NO. 8125048971 ?. 02 CHS Gym Improvements Dist 251 Termination of Use Agreement Fee City of New Hope ~ Date Pn~ent kn~ P6nciple Terminadon 1 Jul I, 2~1 $189,4~ $162,5~ $26,9~ ~3,223,096 2 lul I, 2~ $1 ~9,4~ $161,155 $28,249 $3,194,g47 3 JuI I, 2~3 $189,404 $159,742 $29,662 4 lul 1,2004 ~g9,404 $15~,259 $31,145 $3,134,~0 5 SuI 1, 2005 $]89,~ $~56,702 $32,702 6 Jul I, 2006 $Ig9,4~ $155,067 $34,337 $3,067,001 7 J~ 1, 2~7 $I89,4~ $153,350 $36,054 $3,030,947 8 ~ul I, 2~8 $189,4~ g151,547 ~37,857 $2,993,091 9 Jul I, 2009 $189,404 $149,655 $39,749 10 2010 $189,~ $147,667 ~41,7.q7 ~911,60~ I 1 Jul 1, 2011 $189,a04 $~45,5R0 ~3,82~ $2,867,780 12 Jul 1, 2012 $189,404 $143,~89 ~6,015 $2~g21,765 13 Jul 1, ~13 $189,404 $141,088 ~g,316 $2,773,~9 14 Jul ],2014 $189,4~ $138,6~ $50,732 15 Jul 1,2015 $189,~4 $136,136 $53~68 $2,669,450 16 I~ 1,2016 $189,404 $133,472 $55,932 $2,613,518 17 JuI I, 2017 $189,~4 $130,676 $58,728 18 Jul I, 2018 $189,4~ $127,7~ $61,665 $2,495,126 19 Iul 1, 2019 $189,404 $124,656 $64,748 $2,428,378 20 Sul 1, 2020 $189,4~ $121,419 $6~,985 g2,360.393 21 ~ 1, 2021 $189,404 $118,020 $71,384 $2~89,00g ~ J~ 1, 2022 $189,404 $114,450 $74,954 $2~14,055 23 J~ I, 2023 $189,4~ $110,703 $~8,701 $2,13~,354 24 Jul l, 20~ ~189,404 $1~,76fl $82,636 $2,052,717 25 Jul 1, 2025 $189,~4 $10~636 $86,768 $1,965,949 26 Jol 1, 2026 $189,4~ $98,297 $91,107 $1,874,~2 27 3ul 1, 2027 ~ 189,40g $93,742 $9~,662 25 ~ Jul 1, 2028 $ 189,4~ $88.959 $100,~5 ~ $ ] ,678,736 29 ] Jul 1,2029 $I g9,~4 $83,937 $105,467 ~ $1,573,268 $0 ~ J~t I, 2030 $189,~4 $78,665 $110,741 ~ $1,462,528 31 ...~ 'jUl 1', 203f S1'8g,~4 $~}126 $11'6~78 ~ $1,346~50 32 ~ Jul 1, 2032 $199,4~ $67,313 $1~,092 ~ $1,224,159 34 ~ Y~ I, 2034 $189,~ $~,798 $134,606 ~ $961,357 35 ~ ~ul 1, 20~5 $189,4~ $48,~8 $14~36 ~ $~20,020 36 ~ JUl 1, 2036 $189304 $41,001 $148,403 ~ $671,617 ~7 ~ $ul 1,2037 $189,~4 $35,581 $155,823 ~ $515,794 38 ~ 1~ 1, 20~8 $189,~4 $25,790 $163,614 ~ $352,180 39 ~ sm ~, 2o39 SlSg,~ $17,609 $171,795 ~ $180,385 40 J~ 1.2~ $189.4~ $9.019 $180.385 . $0 Tormhmzion Fee- TW Page I 10/19/99 00T-21-99 THU 02:24 PM ROBBINSD/iLE $OHOOL$ FaX NO, 6125048971 P, 02 .:,'~': ~ CHS Gym Improvements Dist 281 Budget ~~ Amount ] City_ Ci~ Amount Per~nt Ca~tr~c~on Aec~z to Ballfi~l~ $I 5,000 30% ~,500 70% $10,500~ 'l'enn~ ~u~ $300,000 3~A $90,000 70% $2.0,000: ] Bal~c~ of Sito Wo~ $197,121 100% $197,121 ~ 0% $0~ O~ne~{ ~nditions ~6,~79 70% $27~ 79 i~ 30% $19,500. Ocnem[ ~ $1,8 ! 0,000i 100% $1 Mechani~l ~ $450,0~ 100% $450,000 0% $0 Elec~i~I $211,000 1 ~% $2 l 5,000 0% $0 ]$ubto~l $3,034,000 $2,794,000 ~40,000 ~Funding AIIo~tlon A~ Fc~ $199,730 100% $199,730 0% $0 ~mmi~ioning $7,000 10~ $7,000 0% $0 Oeole~hni~l $3,000 10~ $3,000: 0% $0 P~ l~eview $0 100% $O 0% $0 Bid Adveffi~ment $~,~0 100% $5,000 ! · 0% $0 CiW Leg~ & Gert Eng~r~g $25,000 100% ~5,000 ~ S~I Sp~hl In~p~ons $6,0~ 100% $6,000 0% $0 ~etion Tes~g $7,0~ I00% ._ $7,000 0% $0 Subto~l $252,730:: $252,730 $0 gumitu~ a~d Equipment Furni~ and Si~g~ $5,0~i I00% 5;5,000 0% $0 Sold S~m & Cohesions Equipment $15,~ 100% $15,600 0% $0 ~uipment $3,000 100% . . $3,000 0% $0 $ub~t $~,000 $23,~0 $0 Con~en~ $~05~70 ~% $~05~70 0% $0 TOTAL $3,41~,~ $3,17~,~ $240,~ Finance Cos~ $7~,~ $75,0~ G~D ~T~ $3,4~,~ $3,2~0,000 $240,000 '~ Construction Budget - TW Page I I0/19/99 I I EDA t REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development, ~-~ 10/25/99 FDA Kirk McDonald/~/ Item No. DISCUSSION REGARDING PROPERTY AT 5550 WINNETKA AVENUE NORTH AND OTHER PROPERTIES ON EAST SIDE OF WINNETKA BETWEEN 5340 AND 5550 WINNETKA ACTION Staff requests to discuss with the EDA the vacant commercial propert~ currently for sale, located at 5550 Winnetka Avenue North, to determine if the EDA wants to direct staff to inquire about the potential acquisition of the property. Staff would also like to discuss approaching other property owners on the east side of Winnetka between the Bauer property and the Donut Shop about the potential acquisition for redevelopment. POLICY/PAST PRACTIC£ In the past, the F:DA has directed staff to pursue the acquisition of vacant commercial and available residential property that is located in areas of the City that the Comprehensive Plan has identified for potential redevelopment. BACKGROUND The commercial property located at the southeast quadrant of the intersection of Winnetka Avenue and Bass Lake Road, has become vacant within the last several months. The Donut Shop is located in an area identified by the Comprehensive Plan for future redevelopment. Staff requests to discuss with the EDA if you are interested in having staff investigate the potential acquisition of this site. The property is located in a B-2, Retail Business, Zoning District. Surrounding land uses include single family residential to the south; B-2 Retail Business to the east; R-1 Winnetka Elementary to the west; and B-2 and B-3, Retail and Auto-oriented Business, across Bass Lake Road to the north. The property contains 20,700 square feet (.47 acres), and the 1,300 square foot, one story masonry structure on the site was constructed in 1975. The current market value of the property is $164,000 ($126,000 land/S38,000 building). This property is located within Planning District 6 of the Comprehensive Plan, which outlines an aggressive strategy for enhancing the commercial character along Bass Lake Road. Recommendations include: MOTION BY SECOND BY I RFA-OO I ~ Request For Action Page 2 · Expand the commercial land use patterns along Bass Lake Road to increase the land area for commercial redevelopment. · Assemble and redevelop smaller commercial sites to create longer commercial lots for contemporary retail, service, and office uses. As the EDA is aware, the City has already acquired some residential properties in this area on a voluntary basis for redevelopment purposes. The City recently submitted a Livable Communities Grant Application to Metropolitan Council for planning purposes in this area. If the EDA determines to proceed on potentially acquiring this property, staff recommends that the EDA direct staff to: 1. Contact the realtor and inform them of the City's interest in the property, and 2. Authorize staff to obtain an appraisal of the property. The estimated cost for an appraisal on this property is $2,500. Staff further requests that the EDA authorize staff to contact the residential property owners between 5340 and 5550 Winnetka (15 properties) to inquire if they may be interested in a voluntary sale to the City, as these properties are also sited in the Comprehensive Plan for redevelopment. FUNDING The cost for the appraisal would be funded out of EDA funds, and, if acquisition proceeds, would be charged against the project. The property is located in an area where TIF funds can also be expended for redevelopment activities. ATTACHMENTS Vicinity Plan Site Plan/Data Comprehensive Plan Excerpts TIF Map Grant Application Excerpts Vicinity Plan ~/, i .......... i ......... ~' .......... ..... ~.,_.~-- ~°~, I ,t ~-t::.~ I ~ AVE N ~ R-0 B-2 )STERMAN ' HIGH ;HOOL WINNETKA ....... ELEMENTAR" ~ ~ ST. RAPHAEL SCHOOL ~ CHURCH I / SITE DATA Site: Donut Shop Address: 5550 Winnetka Ave. No. Land Area = 20,700 sf [ .47 acres ] Building Area = 1,300 sf [ 6 % ] Year Built: 1975 Building Type: One stow masonry with fiat roof Zoning District: B-2, Retail Business Street Frontages: 2 county roads; Winnetka and Bass Lake Road '" -- "- .,. (46) (45) .... _. la ........................ .... ~~ i ..u4. ............................. § LU ........................ ~ .... (26) (2) -~ (84) ~ F G _~ (85) I - I I ...................................... ~70 " - - I- - - I 75 . ,9/' (17) ~ I i~ .J I K ii *~ - (86) -' I (99) ..................................... I ao I ,'~ _~..l_~_ s ~ (97) I00. 55 L 4~)-.~. 61.45 . ~ ~ ~ (~) . ~ ~ 146 - ~_ ~ ~' ~ 5~H Plannin~ Districts 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. 1. 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: a. The City will aggressively promote pdvate 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. b. Scattered site housing renovation and redevelopment will be pursued on selected lots within District 6. · c. 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 _~d.~. 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. e. New Iow density residential land uses will be encouraged on the remaining vacant parcels in District 6. 2. The medium and high density residential land uses in District 6 are located along Bass Lake Road. Inspection of these land uses find these areas in various states of disrepair. The renovation of medium and high density land use in District 6 includes: a. The City is currently participating in the redevelopment of a blighted non- conforming medium density residential site located along Bass Lake Road City of New Hope Comprehensive Plan Update Development Framework 85 Plannin~ Districts between Ne_vada and Pennsylvania Avenues. This redevelopment is being undertaken with a non-profit organization along with the cooperation of lSD 281 .and the City of Crystal. This project provides a working example of projects that will provide a much needed housing resource and correct land use infrastructure concerns. The proposed land use plan has been modified to illustrate the resulting medium density land use for the site. b. A second undeveloped target area involves a high density residential site located along Winnetka Avenue north of Bass Lake Road. This .site displays declining building and site conditions. The City will pursue building -- renovation and/or redevelopment as conditions permit. ".~ 31 . Within Planning District 6, an aggressive strategy for enhancing the commercial .... J character along Bass Lake Road is recommended including: [ a. Expand the commercial land use patterns along Bass Lake Road to increase ~_____~'"' the land area for commercial redevelopment. ,.. b. Assemble and redevelop smaller commercial sites to create larger ~./' commercial lots for contemporary retail, service and office uses. c. In cooperation with the City of Crystal, establish a commercial streetscape that enhances the overall character of the Bass Lake Road commercial corridor. City of New Hope Comprehensive Plan Update Development Framework 86 BROOKLYN PARK FUTURE DEVELOPMENT AND REDEVELOPMENT SITES i (~ Residential Opportunity = t~t Commercial Opportunity O Industrial Opportunity ' Commercial / Industrial Opportunity · O Deteriorating / Blighted Areas =~ ~ Underdeveloped Areas ~ Vacant Areas a i Source: City of New Hope i October 1997 Base Map: · Bonestroo Rosene 0 1000 2000 3000 Anderlik &Associates SCALE IN FEET City of New Hope GOLDEN VALLEY Comprehensive Plan Update 45 Inventory HOSTERMAN WINN I HIGH SCHOOL E ~r~ SCH TH AVE. N. Livable Communities Demonstration Account of the Metropolitan Livable Communities Fund APPLICATION - 1999 1. PROJECT NAME Winnetka - Bass Lake Road Redevelopment 2. APPLICANT AND CITY Applicant: City of New Hope 3. AMOUNT OF FUNDING REQUESTED $37~000 4. CATEGORY Category E - Proposal for Planninq/Predevelopment Activities for a Proiect Fittinq Category C 5. PROJECT SUMMARY The City of New Hope is requesting funds for complete planning and market feasibility analysis studies, as well as concept designs, for the redevelopment of the Winnetka - Bass Lake Road area as identified in the City's Comprehensive Plan. The area is identified as blighted and in need of redevelopment. At this time, the City has acquired five of the thirty-four properties with several other acquisitions in process in the project area with the intention of landbanking the properties until a redevelopment plan is adopted. A city-wide housing study conducted in 1998 identifies the need for New Hope to expand its livable housing options to include more townhome and higher-value housing options for the City's aging population. The City would like to look at a mixture of these housing types in its redevelopment plans. 6. PROJECT CONTACT PERSON Kirk McDonald Director of Community Development 4401 Xylon Avenue North New Hope, MN 55428 Phone: 612-531-5119 Fax: 612-531-5136 7. SITE LOCATION (refer to project area maps in Attachment F) The project area extends along Winnetka Avenue to the east from 54th Avenue to Bass Lake Road. Along Bass Lake Road, the project area extends from Winnetka Avenue to approximately 560 feet east of Sumter Avenue. The project area consists of 31 single- family residential (15.0 acres) and three commercial properties (1.2 acres). Combined, the project area encompasses 16.2 acres of land divided into 34 residential and commercial properties. With 26 existing homes on the 15.0 acres of residential land, the existing density is less than two units per acre. The adjacent properties to the project area consist of a wide variety of land uses. To the west of the project area are industrial and residential uses, including an elementary school. The adjacent properties to the north include commercial, office, and single- family residential land uses. To the south and east are a church, park, and single-family residential homes. The Comprehensive Plan identifies the area for both residential and commercial redevelopment. Excerpts from the Comprehensive Plan are included with this application in Attachment G. The housing goals for the City call for the redevelopment of existing residential uses to include lifecycle housing options for residents of the community, including higher value housing and owner-occupied attached housing (townhomes, twinhomes, cooperative apartments). These housing options will be pursued with the proposed land use studies. 8. THRESHOLD CRITERIA MEASUREMENT Does not apply. 9. HISTORY OF PROJECT AREA The area southeast of the intersection of Bass Lake Road and Winnetka Avenue was developed in the post-World War II era. The homes in the project area were all constructed in the late 1940s and the early 1950s, as identified in New Hope's Comprehensive Plan. The homes have the characteristics of many ramblers constructed during this time period, such as detached garages and floor plans with narrow hallways, small rooms, and fixtures that do not meet today's building and safety codes. This area was one of the first developed in New Hope, and fifty years later the homes are showing signs of their age more than other areas of the City. A vast majority of the homes in the project area qualify as blighted by the standards outlined in the Comprehensive Plan and are in need of significant redevelopment. The City purchases and rehabilitates blighted single-family homes throughout the City on a scattered site basis in areas where the surrounding neighborhoods are well- maintained. It has been the determination of the City Council, however, to purchase homes in this area for redevelopment on a larger scale. Over the past few years, the City has acquired five properties in the project area, on a voluntary basis, and demolished the blighted homes. The properties were landbanked for a future large- scale redevelopment project. At this time, the City is prepared to commission land use , and market feasibility studies to identify a redevelopment plan for this area. The project area also consists of three commercial properties fronting Winnetka and Bass Lake Road at their intersection, Listed below is a history of each building, from west to east through the project area: 5550 Winnetka Avenue - The retail store at this location was built in 1975, and has served as a locally operated donut shop for the past 24 years. It has changed ownership numerous times, with several periods of vacancy. In August 1999, the existing business closed and the building is currently vacant. 7809 Bass Lake Road - Built in 1954 as a residential home, this property began retail usage during the 1970s. The City has had problems with illegal use of the property at several times in the past. The property 'is currently used for an eye care center, and has been identified in the Comprehensive Plan as blighted and in need of redevelopment. 7801 Bass Lake Road - This two-story office building was constructed in 1969. Throughout the past 30 years, its use as an office building has remained constant. The tenants of the building change regularly, and currently the building has several vacant offices. The property has also been designated as blighted by the City's Comprehensive Plan. These properties all have frontage on one of the busiest intersections in the City. Their blighted condition not only has had an effect on their respective businesses, but also on the commercial viability of adjacent commercial areas. Over the past several years, a majority of the surrounding commercial properties have become auto-orientated businesses. Redevelopment in this area is necessary to revive the struggling commercial properties in the area. 10. PROJECT ELEMENTS Goals The City of New Hope has identified in its Comprehensive Plan the goals for its residential and commercial zones (see Attachment G). This proposal is consistent with the City's Comprehensive Plan, in that the project goals are directly related to the City- wide objectives established in the Plan. The project is also harmonious with the intentions of the Livable Communities Program and the Metropolitan Council's Regional Blueprint. The established goals for this project are as follows: 1) Fully-utilize residential land area and correct the irregular lot dimensions present on the eastern portion of the project area, 2) Redevelop blighted homes, 3) Correct access problems to Winnetka Avenue from residential units, 4) Revitalize commercial properties at the intersection of Winnetka Avenue and Bass Lake Road, 5) Initiate mixed-use development in the project area, providing greater coordination between commercial and residential land uses, and 6) Create housing types, styles, and choices to meet New Hope's changing demographics, particularly townhomes, twinhomes, and single-family homes , at different sales/rent levels. Concept The City has developed initial concepts of what it envisions to take place in the project area. The land uses will remain primarily residential, with redevelopment of the commercial areas along Winnetka Avenue and Bass Lake Road. In the past, the City has commissioned brief planning studies that have identified whether or not the City should begin acquiring properties in the project area. The planning studies have been completed relevant to portions of the project area, but no study has ever been completed for the project area as a whole. Those rough concept sketches are included in this proposal in Attachment I. This proposal for funding is to cover the consulting costs for complete planning and market feasibility studies for the project area as a whole. The City will incorporate the concepts it has from previous studies into the proposed planning and market feasibility studies of the entire project area. This proposal includes the following concepts for the proposed area: 1) Planning and market studies on a combination of residential uses, 2) A mixture of single-family, townhomes, and retail/office redevelopment, and 3) Studies to provide the City of New Hope with redevelopment options it may wish to pursue for incremental site redevelopment. Scope The project area will include the properties outlined in Attachment F. This area consists of 31 residential and three commercial properties. Combined, the total project area encompasses 16.2 acres. The proposed study will be for residential and commercial uses of the outlined properties. The project will include street improvements to existing streets and the addition of roads and walkways to improve accessibility to the redeveloped units. The City is planning street improvements on Sumter Avenue, which will require the use of a small portion of residential land along the west side of this street. The project will also enhance other transportation options, including courtesy benches for public transit, sidewalks to adjacent retail areas, and safer crosswalks and intersections for pedestrians and motorists. Affordability The City of New Hope has consistently cooperated with the goals of the Livable Communities Program and the Metropolitan Council's Regional Blueprint in terms of affordable housing. In 1998 and 1999, the City participated in projects that created or redeveloped 36 units of affordable housing in the City. This project will include the study of a wide vadety of affordable housing options, which will include single-family and twinhomes, as well as townhomes. Mixed-Use The City is proposing a mixed-use development that will include commercial uses near the intersection of Bass Lake Road and Winnetka Avenue and residential uses with the remaining project area. The residential uses will also consist of a mixture of housing types and affordability levels. The City's Comprehensive Plan, which outlines a mixture of land uses, will serve as the guide for the planning and predevelopment studies. The Comprehensive Plan was approved by the Metropolitan Council on September 1, 1999. Its goals are listed in Attachment G. 11. SPECIAL FEATURES The City envisions an innovative residential land use with the project area to include a variety of housing options at different sales and/or rent levels. 12. LINKAGES WITHIN THE PROPOSED DEVELOPMENT, TO ADJACENT NEIGHBORHOODS The land use in the project area, to restate, is intended primarily to be Iow-to-medium density residential. Increasing the density of the single-family properties from 1.7 units per acre to around 3 units per acre would be desired. Also, the City would like to pursue the option of creating medium density residential uses that would be compatible with single-family neighborhoods. Such uses would include townhouses or other alternatives consistent with the principle of lifecycle housing options. Pedestrian accessibility The pedestrian connections within the project area would consist of sidewalks and open spaces. The commercial uses at the northwest section of the project area would be made easily accessible to residents in the project area. Sidewalks would also be aligned to provide easy access to the park, school, church, and commercial areas adjacent to the project area. It is a goal of this project to allow residents in the project area the ability to access a wide variety of services without the use of automobiles. Linkage with neighboring land uses The land uses of the areas surrounding the project area were described in question nine. Bordering on the project area are commercial, industrial, and residential uses that include a church, school, park, retail stores, and apartment buildings. Focusing on the surrounding residential areas, most of the single-family homes in the area were built at the same time as the homes in the project area. Being separated from the major intersection of Winnetka and Bass Lake Road, secluded in quiet residential neighborhoods, the homes surrounding the project area are not in the blighted condition of those in the project area. Most have received better maintenance and upkeep over the past 50 years than the homes fronting directly on Winnetka and Bass Lake Road. On an individual basis, however, the City of New Hope's Scattered Site Housing Rehabilitation Program has been used to address homes in these neighborhoods that may be blighted. For example, in 1996 the City acquired a blighted property just to the south of the project area (5212 Winnetka Avenue) as part of this housing program. The City rehabilitated the home, and sold it to a family that met Iow- to-moderate income requirements in 1998. Several multiple-family residential uses around the project area are identified in the Comprehensive Plan as in need of redevelopment. New Hope has a large Uapartment , community," with over 40 percent of its population living at properties with high-density land uses. One of the areas targeted by the Comprehensive Plan, which borders the project area, was recently redeveloped. In 1998, Project for Pride in Living began a project coordinating the redevelopment of seven four-plex apartment buildings on Bass Lake Road, adjacent to the northeast of the project area. The redevelopment, titled the Bass Lake Court Townhomes, was completed in September 1999. It consisted of the rehabilitation of seven apartment buildings into 14 rental townhome units and included the construction of 20 additional townhome units. When completed, the project created six additional units of affordable rental housing, while addressing one of the most blighted areas of the City. From the initial planning stages, representatives from the City of Crystal were involved in the site design and layout development. The project area is unique in that it borders single-family neighborhoods in the City of Crystal to both the east and west. PPL and the City of New Hope addressed concerns of Crystal neighborhoods related to the site access, visibility, drainage, and crime. The Robbinsdale Area School District also played an important role in the success of the project. In order for the project to be completed, the School District had to sell land to PPL from the adjacent Thorsen Community Center. It also offered use of the Center to PPL and the City of New Hope for neighborhoods meetings throughout the process. The industrial area located to the southwest of the project area has also seen its share of improvements. One of the major industrial buildings in this area, approximately 300 feet from the project area, recently installed a soundwall to prevent noise pollution to the surrounding residential areas from its trucking operations. The soundwall was completed in the spring of 1999. The industries that border the project area are part of the City's largest industrial park, Science Industry Park. New Hope is identified in the Met Council's Regional Blueprint as a job concentration area, and this industrial park claims eight of the cities ten largest employers. With jobs nearby, it would be a goal of the project to provide housing alternatives for people who want to live within walking distance of their job. The commercial properties adjacent to the project area are also in need of redevelopment. Several adjacent commercial properties are auto-orientated service or filling stations. To the north of the project area is a greenhouse and lawn care center. The area is in a high traffic location, and the City has identified the commercial properties in the proposed project area as in need of redevelopment. The appearance and condition of the surrounding land uses would be greatly enhanced by the redevelopment of the project area. It is the City's expectation that the revitalization to the area from this project would spark further commercial redevelopment in the area. Demographics of New Hope New Hope is an aging, residential community with an average resident age of 34.6 years old. As the Comprehensive Plan identifies, New Hope's population has stayed relatively steady over the past 30 years, primarily because the City is a fully-developed community. The community offers a large number of single-family detached and apartment-style housing units, but offers very few townhome or medium-density units. The City commissioned a housing study in 1997 by Nancy Reeves and Associates (Attachment H) which stated that in order to meet the housing demands for its future, New Hope must find a way to add empty-nester housing options, which would include association-style living in townhomes or single-family attached units. New Hope views this project as a way to accommodate the needs of its changing population and address ' the issue of a blighted neighborhood at the same time. 13. HOUSING, EMPLOYMENT AND TRANSPORTATION CONNECTIONS The project area is currently serviced by the three main bus routes operated by the MCTO. The average daily ridership, boarding and unloading just west of the intersection of Bass Lake Road and Winnetka Avenue, is approximately 508 persons per working day, according to Ellen Skoog of the Met Council. Currently, there are no transportation facilities in the project area to enhance the use of public transportation. With the planning and predevelopment of this project, the City of New Hope would like to explore the possibilities of adding transportation amenities that would encourage the use of the MCTO bus service. The current bus routes that service the area connect the project area to the City's major employment areas, main shopping centers, as well as to neighboring Crystal's main shopping and employment areas. One of the routes is an express route that runs between New Hope and downtown Minneapolis. This route picks up riders one block west of the project area. Some possible tools the City is interested in pursuing would be public transportation shelters and courtesy benches along the bus routes. The City would also consider a pull-out lane for buses to pickup riders along the busy Bass Lake Road without stopping in traffic and presenting safety hazards to other motorists, pedestrians, and public transit riders. 14. PLANNING PROCESS If the City receives grant funds to pursue the project, it will begin the planning and market analyses in 2000. The City expects the studies to take four-to-six months to be completed, during which time the City will explore funding sources for the development stages of the project. 15. PROJECT TEAM The project team is comprised of the Community Development Department, City Attorney, City Engineer, and the City's Planning Consultant. This group has a variety of experience in redevelopment both with the City of New Hope and other metropolitan cities. New Hope has a good track record with large scale redevelopment projects, with the most recent being the Bass Lake Court Townhomes, as described in question 11. The project team will expand to include members of the Planning Commission and representatives from the surrounding neighborhoods when the project gets underway. 16. PARTNERSHIPS In the planning and predevelopment stages, the City of New Hope will commission studies under the supervision of the project team. Following the planning stages, the City is interested in pursuing a development partnership with other government, pdvate, or non-profit agencies. 17. USE(S) OF DEMONSTRATION ACCOUNT FUNDS The Demonstration Account Funds will cover only the consulting costs for the planning and market feasibility studies, as well as the development of plans for the redevelopment of the project area. The City will meet the 1:1 grant matching, as established by the Category E grant requirements. At this time, the City has invested over $478,000 in hard costs associated with the acquisition of five properties in the project area. In addition to these costs, the City will cover all the administrative costs not assumed by the consultants completing the respective studies. It is estimated that the feasibility studies will cost $41,000 based upon previous studies conducted by the City of New Hope similar to this project. 18. FINANCIAL SUMMARIES Not applicable. 19. PROJECT SCHEDULE The City will begin the process with planning and market feasibility studies early in 2000. 20. LOCAL GOVERNMENT SUPPORT See attachment E. 21. ADDITIONAL A'I-rACHMENTS Attachment A - Information not available Attachment B - Attached Attachment C - Attached Attachment D - Attached Attachment E - Resolution of support Attachment F - Site and project area maps Attachment G - Excerpts from the Comprehensive Plan Attachment H - Nancy Reeves Housing Study, November 1997 Attachment I - Previous concept sketches ~ ~ BASS LAKE ROAD 2-.OMMEflCIAI. ~ ~EI3EVELO~'MENT L ~ AREA :...,.i - 8~ 5STH AVE. ST. RAPHAEL DR. I _..J ·N ° '° '°°~' I ~ ~ N r,~kG ' j , CONCF. PTA