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060898 EDA Official File Copy I CITY OF NEW HOPE EDA AGENDA EDA Regular Meeting//2 June 8, 1998 Agenda//2 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Coil/er Commissioner Pat La V/ne Norb¥ Commissioner Gerald Otten 1. Call to Order 2. Roll Call 3. Approval of Minutes of February 9, 1998 4. Resolution Authorizing Commencement of Eminent Domain Proceeding to Acquire Property at 7300 Bass Lake Road 5. Resolution Finding Need to Acquire Title and Possession of Property at 7300 Bass Lake Road Prior to Commissioners' Award, Approving the Appraisal of Damages Resulting From Taking and Ratifying and Authorizing All Steps Taken by Staff to Acquire the Property 6. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes February 9, 1998 Meeting #1 CALL TO ORDER President Enck called the meeting of the Economic Development Authority to order at 9:06 p.m. ROLL CALL Present: Enck, Cassen, Collier, Otten Absent: Norby Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Cavanagh, Clancy, French, Watts APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner Cassen, to approve the EDA minutes of December 8, 1997. Voting in favor: Enck, Otten, Cassen, Collier; Abstained: None; Absent: Norby. Motion carried. IMP. PROJECT $23 President Enck introduced for discussion Item 4, Resolution Approving Letter of Item 4 Understanding Between the Fridley Housing and Redevelopment Authority and the New Hope Economic Development Authority for the Suburban Remodeling Plan Book Project (Improvement Project No. 623). Ms. Jacquie Cavanagh, Administrative Analyst, updated the EDA on the status of the planbook project. She stated the City of Fridley will administer the contract and has prepared a Letter of Understanding outlining the use of the $5,000 per city contribution for the project. Discussion ensued regarding the indemnification language contained in paragraph 3 of the Letter of Understanding. Mr. Steve Sondrall, City Attorney, indicated that he spoke with a representative of the City of Fridley and learned that the Letter of Understanding was modeled from a standard contract. He recommended that the agreement be approved subject to deletion of paragraph 3. Ms. Cavanagh noted the $5,000 fee covers cost of developing the planbook but not reproduction. Commissioner Cassen recommended that all cities charge the same fee for the planbook. Ms. Cavanagh agreed te discuss this recommendation with the planbook committee. EDA RESOLUTION Commissioner Otten introduced the following resolution and moved its adoption 98-01 with the condition that paragraph 3 be striken from the document: Item 4 "RESOLUTION APPROVING LETTER OF UNDERSTANDING BETWEEN THE FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY AND THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY FOR THE SUBURBAN REMODELING PLAN BOOK PROJECT (IMPROVEMENT PROJECT NO. 623)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Cassen, and upon vote being taken thereon, the following voted in favor thereof: Enck, Cassen, Collier, Otten; and the following voted against the same: None; Abstained: None; Absent: Norby; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. New Hope EDA February 9, 1998 Page 1 IMP. PROJECT614 President Enck introduced for discussion Item 5, Resolution Authorizing Item 5 President and Executive Director to Enter into a Redevelopment Contract with Project for Pride in Living, Inc. for Funding of Bass Lake Road Redevelopment (Improvement Project No. 614). Mr. Kirk McDonald, Director of Community Development, explained that the project involves redevelopment of existing four-plexes located at 7302-7316 Bass Lake Road and the construction of new units for a total of 34 units. He reported that a variety of financing sources would be utilized including tax increment financing funds from the City. Since last fall when the EDA authorized the project, several meetings have taken place including a well attended neighborhood meeting. Mr. McDonald stated the Redevelopment Contract outlines the responsibilities of the City and PPL Mr. Steve Cramer and Lisa Kugler of PPL were recognized. Mr. Cramer, Executive Director, commented on the productive meetings held regarding the project. Ms. Kugler, Development Consultant, explained the key provisions of the contract. She provided information on the floorplans and indica{ed that more details will be available in April. Ms. Kugler stated PPL needs to demonstrate to the Minnesota Housing Finance Agency that they have complete site control. Commissioner Cassen initiated discussion regarding set-back requirements. Ms. Kugler noted that several variances may be needed due to the height of the buildings and lack of separation between buildings.. Mr. Steve Sondrall, City Attorney, clarified that a blank in the Redevelopment Contract under Article 5 (page 8) shall be $500,000. EDA RESOLUTION Commissioner Collier introduced the following resolution and moved its 98-02 adoption: "RESOLUTION AUTHORIZING PRESIDENT AND EXECUTIVE Item 5 DIRECTOR TO ENTER INTO A REDEVELOPMENT CONTRACT WITH PROJECT FOR PRIDE IN LIVING, INC. FOR FUNDING OF BASS LAKE ROAD REDEVELOPMENT (IMPROVEMENT PROJECT NO. 6'!4)? The motion for the adoption of the foregoing resolution was seconded by Commissioner Cassen, and upon vote being taken thereon, the following voted in favor thereof. Enck, Cassen, Collier, Otten; and the following voted against the same: None; Abstained: None; Absent: Norby; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. ADJOURNMENT Motion was made by Commissioner Collier, seconded by Commissioner Otten, to adjourn the meeting. All present voted in favor. The New Hope EDA adjoumed at 9:37 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA February 9, 1998 Page 2 RF UEST FOR ACTION Originating Depa~ent Approved for Agenda Agenda Section EDA Community Development _~ 6 Item No. By: Kirk McDona[d By:. 4 / RESOLUTION AUTHOR[ZING COMMENC~_C/MENT OF EMINENT DOMAIN PROCEEDINGS TO ACQUIRE PROPERTY AT 7300 BASS LAKE ROAD The attached resolution prepared by the City Attorney authorizes the commencement of eminent domain proceedings to acquire the property at 7300 Bass Lake Road. The property is necessar~ to comp[ere the PPL Bass Lake Road Townhome Project on Bass Lake Road. PPL has come to an impasse with the owners of the Spur Station located at the site. Staff recommends approval of the resolution. MOTION BY ~~ SECOND BY ~ RFA-OO / ~ EDA RESOLUTION NO. 98- RESOLUTION AUTHORIZING COMMENCEMENT OF EMINENT DOMAIN PROCEEDINGS TO ACQUIRE PROPERTY AT 7300 BASS LAKE ROAD BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope, Minnesota as follows: WHEREAS, the Housing and Redevelopment Authority in and for the City of New Hope (hereafter the HRA) was established and organized within the City of New Hope under authorization of New Hope Code §2.30 et. seq. and Minn. Stat. §462.415 et. seq., and WHEREAS, the HRA, acting pursuant to the authority of Minn. Stat. Chap. 415 established the following Redevelopment Plans: 80-2, 81-1, 81-2, 85-1, 85-2 and 86-1 and corresponding Redevelopment Projects to be undertaken pursuant to said Plans, and WHEREAS, in order to finance the public redevelopment costs to be incurred by the City and the HRA in connection with the Redevelopment Plans and Projects, the HRA and the City have approved Tax Increment Financing Plans, which establish tax increment financing districts, which are designated by Hennepin County as Tax Increment Financing District Nos. 1601, 1602, 1603, 1604, 1605, 1606,1607 and 1608, and WHEREAS, Minnesota Law 1987, C. 291 § 48, which repealed Minn. Stat. §462.415 et. seq. provided that all orders, resolutions, motions, plans and agreements and actions taken by any municipal housing and redevelopment authority organized or purported to be organized under Minn. Stat. §462.415 to 462.705 and Minnesota Law 1959 C. 545 § 1 to 19, and taken or purported to be taken by any governing body, city planning commission or political subdivision of the state or public state body with respect to plans and projects are hereby declared valid and effective, and WHEREAS, the Economic Development Authority in and for the City of New Hope (hereafter the EDA) was organized and established within the City of New Hope by Ordinance No. 89~7 adopted by the City Council on March 27, 1989 under authorization of Minn. Stat. §469.090 et. seq., and WHEREA.S, the EDA was transferred control, operation and authority over the Redevelopment Plans, Redevelopment Projects and Tax Increment Financing Plans pursuant to HRA Resolution No. 89-4, City Resolution No. 89-73 and EDA Resolution No. 89-3, and WHEREAS, the EDA has approved by EDA Resolution No. 94-108 adopted at its July 25, 1994 meeting an amendment to the Redevelopment Plans and Financing Plans which is entitled "Master Modification to Redevelopment Plans And Tax Increment Financing Plans" (the Modification). The Modification combines and expands the area subject to the RedeveloPment Plans and authorizes the expenditure of tax increment revenues derived from the districts to pay public redevelopment costs in the additional area made subject to the Redevelopment Plans by the Modification. WHEREAS, the redevelopment plans and redevelopment projects, combined per the Modification, were established under the authority of Minn. Stat. Chap. 462 pursuant to various studies undertaken by the City of New Hope which have shown that certain redevelopment activities in the plan area are warranted and would not have occurred through 'private development alone. WHERE&S, the acquisition of the property located at 7300 Bass Lake Road hereafter legally described is necessary to the successful completion of the Redevelopment Plans, Redevelopment Projects and Tax Increment Financing Plans as combined by the Modification: The South 80 feet of the West 166.76 feet of the East 196.76 feet of the West 1/2 of Lot 32, Auditor's Subdivision No. 226, Hennepin County, Minnesota except road. (PID No. 05-118-21-31 0008), and WHEREAS, the goals and objectives of combining the areas subject to the Redevelopment Plans is to aid in the redevelopment of property in a manner beneficial to the residents of the City and consistent with the objectives of the EDA as stated in the Redevelopment Plans. This will also aid in the construction of public facilities which will serve all residents of the City, all of which will meet the needs specified in the Redevelopment Plans. WHEREAS, Project for Pride In Living, Inc. (PPL) is a nonprofit community development corporation which has been building and managing housing in the Twin cities area for the past 26 years. Further, that PPL has submitted a development proposal to the City Of New Hope to Construct and manage 34 family rental units consisting of 14 four bedroom units and 20 three bedroom units on a site on Bass Lake Road between Nevada and Pennsylvania Avenues North which will include the property at 7300 Bass Lake Road described above, and WHEREAS, 11 units would have market rate rent, 11 units would have rent 15-20% below market rate and 12 units would be part of the Metropolitan Housing Opportunities Program (MHOP) as described on the MHOP Fact Sheet attached hereto as exhibit 1, and 2 WHEREAS, the Economic Development Authority in and for the City of New Hope does hereby determine that the acquisition of this property is reasonably necessary and convenient to the furtherance of providing affordable housing Opportunities within the City to- lower income residents and citizens of the City, and WHEREAS, the EconOmic Development Authority in and for the City of New Hope does hereby also determine that the acquisition of this property is reasonably necessary and convenient to the furtherance of the referenced goals and objectives of the Modification and the Redevelopment Plans, and that in its judgment the acquisition of this property will be for the benefit of the public health, welfare and safety of the citizens of New Hope, and WHEREAS, an appraisal of this property has been previously ordered by PPL and that said appraisal has been completed as of March 17, 1998 by Herman Appraisal Services, Inc. establishing a fair market value for the subject property of $140,400.00, and WHEREAS, the EDA does hereby ratify and adopt the March 17, 1998 appraisal for purposes of this condemnation proceeding to acquire the property at 7300 Bass Lake Road, and WHEREAS, Minn. Stat. §117.232 authorizes the EDA to acquire the subject property by direct purchase in lieu of eminent domain proceedings, and WHEREAS, Minn. Stat. §469.101, Subd. 4 gives the Economic Development Authority in and for the City of New Hope the authority to acquire property by power of eminent domain under Minn. Stat. Chapter 117, including the power of acquiring possession of the property per the "quick-take" provisions of §117.042, if necessary to carry out the redevelopment plan and redevelopment project, and WHEREAS, the Economic Development Authority in and for the City of New Hope has determined it is necessary to acquire this property by direct purchase or eminent domain proceedings, and NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the Executive Director is hereby directed and authorized to acquire by direct purchase at the appraisal value of $140,400.00 the property at 7300 Bass Lake Road in the City of New Hope, legally described as follows: The South 80 feet of the West 166.76 feet of the East 196.76 feet of the West 1/2 of Lot 32, Auditor's Subdivision No. 226, Hennepin County, Minnesota except road. (PID No. 05-118-21-31 0008) In addition to this amount, the Executive Director is authorized to pay all reasonable closing costs associated with the purchase of property. Further, the Executive Director is authorized to retain a relocation expert to determine the amount of relocation expenses the EDA must pay by law as a result of this acquisition and pay to the appropriate parties all required relocation expenses as determined. If direct purchase is unsuccessful, the Executive Director is authorized and directed to commence eminent domain proceedings under Minn. Stat. Chapter 117 to acquire the subject property. 2. That the Executive Director is further directed to utilize the "quick-take" procedure per Minn. Stat. § 117.042 if in the judgment of the Executive Director it is necessary to acquire possession of the property prioi to the conclusion of the eminent domain proceedings. 3. That the Executive Director is hereby directed and authorized to obtain additional appraisals necessary to establish fair market value and just compensation for said property in preparation for said eminent domain proceedings. Adopted by the Economic Development Authority in and for the City of New Hope this 9th day of June, 1998. W. Peter Enck, President Attest: Daniel J. Dona.hue, Executive Director CONDEMNI.EDA (283\CNH-RE$O) June, 1997 Metropolitan Housing Opportunities Program MHOP FACT SHEET What is MHOP? M]-IOP is a rental housing pro,am tl'mt was created as a result ora legal settlement, the Hollman Consent Decree. Az one of the defenOa.r,.ts k-. the lz',vsui~, the PubLic Housing Authority (MPFL~.) a~eed to expand affordable hot.tsing opporttmities for lower income residents in areas where there i'ms traditionally not been a supply ofpubtic housing, in both the Cirv of MSnneapolis and in suburban locations. The NWHA ,,,,ill develop and operate the HolLman replacement u.n.its in the City., but a new kind of approach was needed for the N~PH.A to provide HolJmm~ fy. ntis for the development of public housing in the suburbs. M~-tOP is this tool. Who can live in MHOP housing? Families (a household corn.p~ed oft'wo or more people) whose income when they move in does not exceed 50 percent of the metropolitan area median income. Allowable income lJ. rNts range from 521,850 for a two person family, to $36,050 for ei~t or more farn.ily members. How are families selected for MHOP? For 30% of'the traits, families can be selected from a local wait~g list without respect to Hollmm-~ priorities. For tM rem,zLning 70%, the corment decree requires tMt prospective residents are invited, to apply in the follo,a~g order: l. Those displaced by d'emoLition of public housing. 2. Families on the N~HA waiting Mt who live in minority, or poverty concentrated are~. 3. Any other families on the M~PH_A waiting list. Are there standards for selecting families? Ordy eLig~le and suitable families ~,5.1.I be selected for MSiOP housing, regardless of whether they are on a Ho~ priority tist. St-dmgent admission and etig~ilit7 st~dmzds will be applied to all appticants; For example, ~milies in which any member has a criminal or drug use l'tistory can be rejected for admission. Selection standards for Mt-tOP 14 MHOP Fact Sheet page 2 housing will be the same as those used by private companies: credit histories, landlord history, criminal and drug background, and any other relevant data will be checked. The local housing agency will determine the screening criteria and manage the selection' process. How do suburban families get on the Minneapolis public housing waiting list? The NIPPLe, will automatically place all families who apply from suburbs who are p~u-ticipating in MHOP on its waitkqg ILl, thus making NEsmeapclis and raburban residents equally elig~le for the third priority listed above. As of this writing, the MPHA's waking list includes over 220 suburban families. How much rent will families pay? TNrry percent of'their income or $25,00, v,t'Jchever is ~eater. Who pays the rest of the rent? The U. S. Department of Housing and Urban Development (HUD). HUD will provide operating subsidies for MHOP un.its for forty, years, subject to Confessional appropriation. The subsidy is 'the difference between operating costs and rent. Do families have to move if their income goes up? No, but they must continue to pay 30% of'the~' income. Where can MHOP developments take p/ace? MHOP-fi.mded new construction homes can be built anywhere outside M. irmeapolis and Saint Paul, but withir, the MUSA (metropolitan services) line. Rehzbilitatiou ofexist~g homes with M2-IOP can be done anywhere in the seven-county area, outside of' Mirmeapolis and Saint Paul. Sites will be selected wkich meet punic housing site and neig. hbor~ood standard~, and the MPHA will strongly encourage the development of M~-iOP units in places that are access~le to jobs, transportation, and other amenities important to families with children. What kind of homes will be built? ~[HOP housing can be single family homes, duplexes, towxhouses, smaller rental MHOP Fact Sheet page 3 buildings, or buildings which are constructed as par~ ora larger mixed income development. The housing can be newly constructed or existing houses can be acquired and rehabilitated. Ail developments must comply with local building standards. When will they be built? Anytime between now and April I, 2002. Who will own the units? The units can be owned by a private developer, the suburb or its Housing and Redevelopmeni Authority., or the MPFLd. and the suburb a~eeing to own the property jointly. Who will maintain the units? A management company will be hired to rrm.nage and maintain the property.. TI~ company can be a private property management frm; a non-profit housing management organ/zation; or a local public housing authority., 15re a Housing and Redevelopment Authority.. Why did the Hollman consent decree encourage creating pub/fo housing in the suburbs? To create more choice in affordable housing across the metro area, particularly where jobs are being created. Lower income families who already live in the suburb oppommity to apply for at least 30% of the MHOP units being developed. Studies tweNe years after the Gautreaux decision in Ckicago find that families who moved to the suburbs have had much ~eater economic and educational success, both for parents and the children. More questions about MHOP? Please conta~. Dave Eng_m'om. Minneapolis Public Housing Authority., at 342-1478. 'iR EDA ~ tr Sr acrxo OriginatJng Depax~u~ent ~p~d for ~enda ~enda SecUon Community Development ~ EDA 6-(~-98~ ~tem No. ~:Kirk McDonald ~ j 5 RESOLUTION FINDING NEED TO ACQUIRE T~L~ AND POSSESSION OF PROPER~ AT 7300 BASS ~KE ROAD PRIOR TO COMMISSIONERS AWARD, APPROVING THE APP~ISAL OF DAMAGES RESULTING FROM TAKING AND ~TIFYING AND AUTHORIZING ALL STEPS TAKEN BY STAFF TO ACQUIRE THE PROPER~ The City A~orney has also prepared the enclosed resolution regarding the PPL Bass Lake Road Townhome Project in reference to the prope~y at 7300 Bass Lake Road. The resolution establishes a need to acquire title and possession of the prope~y, approves the appraisal of damages resulting from the taking, and ratifies and authorizes all steps taken by staff to acquire the prope~y. The City is utilizing an appraisal by Herman Appraisal Se~ices which establishes a value of $140,000. These steps are necessaw to stay on schedule so that the project construction can begin this fall. The MHFA also recently approved PPL's funding request for the project. Staff recommends approval of the resolution. M~ON BY /~ SECO~ ~ ~~ / , ~A-~ I ~ JENSEN SWANSON & SONDRALL, P.A. Attorneys At Law 8525 EDINBROOK CROSSING, STE. 201 BROOKLYN PARK, MINNESO?A 55443-1999 TELEPHONE (612) 424-8811 · TELEFAX (612) 493-5193 GORDON L. JENSEN* WILLIAM G. SWANSON STEVEN A. SONDR~LL June 4, 1998 MICHAEL R. LAFLEUR MARTIN P. MALECHA BRETT A. PERRY* C. ALDEN PEARSON'}' Mr. Kirk McDonald New Hope Community Development Director 4401 Xylon Avenue North oF COUNSEL New Hope, MN 55428 LOREN$ Q. ]~RYNESTAD Re: PPL Housing Project Our File No. 99.11200 Dear Kirk: Please find enclosed the following two resolutions which will authorize the EDA to initiate a "Quick Take" eminent domain action to acquire the property at 7300 Bass Lake Road: 1. Resolution Authorizing Commencement of Eminent Domain Proceedings to Acquire Property at 7300 Bass Lake Road. 2. Resolution Finding Need to Acquire Title and Possession of Property at 7300 Bass Lake Road Prior to Commissioners' Award, Approving the Appraisal of Damages Resulting From the Taking and Ratifying and Authorizing all Steps Taken by Staff to Acquire the Property. Apparently, PPL has come to an impasse with the owners of the Spur Station at 7300 Bass Lake Road for the acquisition of said property. As you know, this property is necessary to complete their proposed housing project on Bass Lake Road between Nevada and Pennsylvania Avenues. Further, the construction and time schedule requires a construction start date sometime in September to ensure completion of the project during this construction season and occupancy of the project on or before March 1, 1999. As a result, we need to initiate the "Quick Take" procedure allowed by Minnesota Statutes Chapter 117. This will permit us to gain possession of the property within ninety days from our service of a Notice of Intent on the property owner and tenants of the property to implement the Quick Take procedure. I estimate that we should then be able to gain possession of the property during the middle to the end of September, or ninety days after service of the notice. PPL has had Herman Appraisal Services prepare an appraisal of this property. It is the appraiser's opinion the property is worth $140,400.00. Attached is a copy of the appraisal. The EDA can ratify and adopt this appraisal as its own for purposes of the *Real Propcny LawSpecialist condemnation proceeding and the Quick Take procedure. We have used Herman Certified By The M~.~o~St~teBa~ Appraisal Services in the past and they are excellent appraisers. I would have no Association ~'Qual fled ADR Neutral June 4, 1998 Page 2 hesitancy recommending that we use their services. However, the time constraints we are currently under to acquire possession of the property mandates that we use this appraisal. Please contact me if you have any other questions or comments regarding the resolutions or attached appraisal. Very truly yours, Steven A. Sondrall JENSEN SWANSON & SONDRALL, P.A. SAS:er Enclosure cc: Valerie Leone, New Hope City Clerk Lisa Kugler Steve Cramer EDA-01.LTR (283\SAS) EDA RESOLUTION NO. 98- RESOLUTION FINDING NEED TO ACQUIRE TITLE AND POSSESSION OF PROPERTY AT 7300 BASS LAKE ROAD PRIOR TO COMMISSIONERS' AWARD, APPROVING THE APPRAISAL OF DAMAGES RESULTING FROM THE TAKING AND RATIFYING AND AUTHORIZING ALL STEPS TAKEN BY STAFF TO ACQUIRE THE PROPERTY BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope, MinneSota (hereafter ."EDA") as follows: WHEREAS, the EDA has authorized commencement of an eminent domain proceeding to acquire certain property at 7300 Bass Lake Road located in the City of New Hope, and WHEREAS, the EDA adopted EDA Resolution No. 98- at its June 9, 1998 meeting and that said Resolution authorized that 7300 Bass Lake Road be acquired by the "Quick-Take" procedure pursuant to Minn. Stat. §117.042, and WHEREAS, the EDA f'mds it necessary to take title and possession to the subject property prior to the final determination of damages from the taking and filing of an award by the court appointed Commissioners pursuant to the "Quick-Take" procedure, and WHEREAS, the EDA bases its finding to acquire the subject property by the "Quick- Take" procedure on the fact that the construction time schedule for the 34 affordable housing units requires a start date in September 1998 to ensure completion and occupancy of the units by March 1, 1999. These dates are necessary to the feasibility and cost effectiveness of the project requiring completion during the 1998 construction season. It is in the best interest of the City of New Hope and EDA that the proposed housing project is completed during the 1998 construction season and to accomplish this objective the construction work necessary to complete the project must commence during September, 1998, and WHEREAS, an appraisal of damages resulting from the proposed taking has been prepared for the property by Herman Appraisal Services, Inc., an independent certified fee appraiser, and that the damages resulting from the taking is $140,400.00, and WHEREAS, said determination of damages in the amount of $140,400.00 is hereby adopted by the EDA as its approved appraisal of value as required by Minn. Stat. §117.042. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That acquisition of title and possession to 7300 Bass Lake Road by the "Quick- Take" procedure permitted per Minn, Stat. §117.042 is necessary and in the best interests of the City of New Hope and the EDA. 2. That the $140,400.00 appraisal of damages for 7300 Bass Lake Road is hereby approved and declared by the EDA as its official determination of damages resulting from the taking. 3. That the EDA staff is hereby authorized to proceed forthwith to acquire the subject property by "Quick-Take" per Minn. Stat. §117.042 and to take all reasonable steps necessary and required to accomplish this objective. 4. That all actions taken by staff to acquire the property by "Quick-Take'' prior to the adoption of this Resolution are hereby ratified and approved as authorized by the EDA. Adopted by the Economic Development Authority in and for the City of New Hope this 9th day of June, 1998. W. Peter Enck, President Attest: Daniel J. Donahue, Executive Director CONDEMN2.EDA (283\CNH-RESO) 2 ,Jun-02-98 01:18P lisa kugl~r 824 8672 P.02 LIMITED APPRAISAL REPORT OF A GASOLINE STATION/CONVENIENCE STORE Located at 7300 BASS LAKE ROAD NEW HOPE, MINNESOTA HENNEPIN COUNTY Owned by MURPHY OIL COMPANY MARKET VALUE ESTIMATE -' as of March 17, 1998 for MR. CHRISTOPHER C. WILSON -- PROJECT FOR PRIDE IN LIVING, INC. HOUSING AND DEVELOPMENT 1925 CHICAGO AVENUE SOUTH - MINNEAPOLIS, MN 55404-1904 HERMAN APPRAISAL SERVICES, INC. Jun-02-g8 01:19P lisa kugler 824 8672 P.03 HERMAN APPRAISAL SERVICES, INC. REAl, ESTATE & BUSINESS VALUATION BROKER AGE AND CONSUI.TATION -- 007 MARQIJETrE AVENUE SOUTH. SUITE 604 MINNEAPOLIS, MINNESOTA 55402 (612) 630-8077 Fax (612) 630-8075 March 17, 1998 -' Mr. Christopher C. Wi[son Re: Limited "as is" market value apprais,-d Project for Pride in Living, Inc. Restricted report format Housing and Developrnent Gasoline station/convenience store -- 1925 Chicago Avcmle S. 7300 Bass Lake Road Minneapolis, MN 55404-1904 New Hope, MN Dear Mr. Wilson, As you requested, we personally inspected the above identified property on March 17, 1998, for the purpose of estimating tile "as is" market value of a tee .qitnple interest in the subject real estate. Definitions of market value and fee simple interest tu'e contained in the attached addenda section to this report. This appraisal is restricted, meaning that only select information that led to our value conclusion is reported herein. This information includes a brief description of the ._ property, a summary of the comparable data used in the valuation analysis, and tile valuation ,'malysis. A mote complete description of the subject real estate, comparable data used, and tlie - analysis that led to our value estimate are retained in our file memorandum. The scope of this appraisal involved the red,ch and analysis of sales of properties considered similar to the subject to render an opinion of market value for the subject, property, We also _ researched and analyzed zoning, neighborhood, market and other data deemed pertinent to our preliminary value estimates for the subject real estate. This report has been prepared in conformity with the requirements of the Uniform -- Standards o.f Professional AppraisM Practice (USPAP) adopted by the Appraisal Standards Board of the Appraisal Foundation and thc COde of Professional Ethics and the Standards of Professional Practice of the Appraisal Institute. This appraisal is limited in scope, in that all valuation methodologies that might be considered applicable to estimating the value of the subject property, as discussed in _. St~md~d Rule 1-4 of I, JSPAP, were not utilized in our analysis of the property. Our final value estimate for the subject is based on the sales comparison approach to value only, the cost and income approaches were not utilized. ~ The Departure Provision of the Uniform Standards of Professional Appraisal Practice (LJSPAP), as promulgated by the Appraisal Standards Board of the Appraisal Foundation, "permits limited departures from sections of the Uniform Standards that are classified as _ specific guidelines rather than binding requirements." Standard Rule 14 is classified as a specific guideline. This report justifiably invokes the Departure Provision for the reasons explained within the apprtdsal. Jun-02-98 Q1:lgP lisa kugler 824 8672 Mr. Christopher Wilson Page 2 {9 'March 17, .I). 8 This limited appraisal is subject to the appraiser's certification and limiting conditions - which ,'u'e attached, mid to the lbHowing specific requh'emen~s, assumptions, and limiting conditions: · Tile valuation of the subject property assumes an "as is" land and itnprovemcnt status and condition ~t~ described either within this appraisal report or our file memorandum. Our effective date of value is 3/17/98 which w~ the date of our inspection. · This restricted report and its value conclusitm is for use by our client, and his/her representatives and/or advisors only. Tile report and its value _ conclusion should not be utilized, for any purpose, by a third party. This report can not be understood properly without additional infi~rmation contained in tile appraisers' file memorandum. - · Any outstanding special assessments or delinquent taxes are assumed to be paid in full at the appraised market value. As of the date of appraisal, the subject pcoperty had no special assessments or delinquent taxes. · The subject parcel is not located in a flotxl hazard zone and it is not subject to flooding. Site drainage appears to be adequate and soil conditions appem' _ , to bc sound. These are conditions of this appraisal. · The subject property does not have any known cultural, scientific, natural, recreationM or historical values. · Unless otherwise stated in this report, the existence of hazardous or potentially hazardous on-site or off-site materials, which may or may not be -- present on or off the subject property, was not ~hserved by the appraiser. The appraiser has no knowledge of the existence of hazardous or potentially hazardous materials on, in, or affecting the subiect property. Our value estimate is predicated on the assumption that there arc no hazardous materials on or in, or potentially affecting the subject property that would cause a loss in value. - · The Americm~s with Disabilities Act (ADA) became effective January 26, 1992. We have not made a specific cmnpliancc survey and analysis of the subject property to determine whether ur not it is in conformity with the _ various detailed requirements of the ADA. A survey of the subject could reveal that the property is not in compliance with one or more of thc requirements of the ADA. If so, this fact could have a negative impact upon the value of the property. We did not consider possible non-compliance .... with the reqtfircmcnts of the ADA in estimating thc value of the subject property. Jun-02-98 01:19P li~a kugler 824 8672 P.05 Mr. Christopher Wilson Page 3 March 17, [998 We have resemx:hed compm'able data, market trends, and other factors that are deemed perti nent to the valuati~n of the subject property. Where necessary, c~mparabie dam and -- other information used in our analyses were verified or researched with knowledgeable individuals. Assumptions and limiting conditions that pertain to this restricted appraisal report, along with the appraiser's certification are presented in the following attached _ addenda secti~m. Also included in the addenda of this report is thc analysis used to estimate the subject's m~kct value. The subject property consists of a 12,174 square foot land parcel thai is improved with a - gasoline station/convenience store. According to the County Assessor's records, the building was constructed in 1963 and contains 944 square feet of gross building at'ca. Ihe subject is situated in a mid-block location along Bass Lake Road in an area of mixed -- residential and cotmnercial uses. We utilized the sales comparison approach to value the subject property. The sales comparison approach produces an estimate of value for a property by comparing it to , similar properties that have sold recently t~r are currently offered for sale. Once similar comparables are obtained they are analyzed with respect to their degree of comparability to the subject properly. Sales of gas station/convenience stores typically include the personal property necessary to operate the business, and our analysis reflects this practice. The market data adjustment _ analysis indicates a range of value of between $145.81 and $151,27 per square foot of gross building area (GBA), including personal property. Thc average and median of the sales' adiusted per units values are $148.58 and $148.81 per square toot of GBA, respectively. The subject is considered to be equally similar to the comparable sales, -- therefore, the average and median were given the most weight. Based on this information ,and analysis, it is our opinion that the estimated fee simple "as -- is" market value for the subject property, as of March 17, 1998, is as follows: Indicated market value $148.70/sq. ft. x 944 sq. It. of GBA = $140,373 -- R~unded to, $140,4 00 ~un-02-98 01:19P lisa kugl~r 824 8672 P.06 Mr. Christopher Wilson Page 4 March 17, 1998 It has been a pleasure being of service on this assignment. Please contact our firm if you have questions or comments after ~:ading this appraisal report. Very truly yours, -- HERMAN APPRAISAL SERVICES, INC. Ellen B. Herman, MAI Principal MN Certified General License -- #4001467 'Barbara Blackburn Associate. _ MN Registered Real Property Appraiser /*20082492 Jun-02-98 O1 : lgP lisa kugler 824 8672 P-07 ADDENDA Jun-02-98 01:20P lisa kugler 824 8672 P_08 ~ 4 - APPRA ISER'~ CERTIFICATION Thc t~ndcrs~gned appraiscr(.~) hereby cc~itlc~ dm~ l~, O~e ~t of my knowlcdg~ and holler*: I have pc~onally i~l~pe.ctcd thc subjecL and comparable p~pettie~. I have no prescnt or contemplative interest it~ ~he real estatc that is tl~e xuhjec.t of thi~ appraisal report, f h~ve no pc~onal interest or bias with rcsp~-t to the su~{~t matter of (his al)prai~al ('e~ or thc ps. cs invo{vcd. Mycompensation is m~l contingent on [m flcliun ut event resulting from the utlaly~ea, opinions, or concJos~on~ i~, or the u~c of, this mimer. To the best of my knowledge and belief statements of fact contained in the appraisal re~, upon which the analysis, opiniops and conclusions expressed heroin are bi. cd, ute In~e and correct. Thcrcpo~d analyscs, opinions, and conclusions ar~ Ii,hired only by thc reported ~mssumptions and limiting condJlions ar)d are my ~rson{d, mmbia~ed, professional analyses, opiflJoll$, and conclusions, The appraisal report ha~ been made in cont~rmity with and i~ ~ubject to the requircm~ts of thc Codc of Ethics and Slandards of P~ofes~ional Practice of thc Appraisal Insti~tc. Ellen H~nnan i~ a member in go~ standing of thc Appraisal Institute and i~ a CeRificd Ocncml l.icens~ appraiscr with thc Slate of Minneaat~ As of the date of ibis repo~. Ellen Herman has complcted thc rcquircmenL~ under the continuing cdu¢(~fion pn'~$tam ut' the Apptaixnl Insti~tc. Thcuse oF this report is s~hje~ to tBc rcqt~ircmcnts o1' the Appraisal Institute ~{aiing 1o ~view by its duly a{~lhocizod rcorescnh~ti veR. NO one L)lher than thc undcrsigned prepared tile analyses, conclusior~$ ~lnd upi:lions concerning real cstatc Iha~ arc sc4 for0~ in the appraisal rcpoH, I was directly cmpluyed by the regulatcd inatilution or ils agent and I have no direct or indirccl in[{~esl, fi~lancial or otherwise in thc propefl,y tra~l~action. ~e a0pcaisal i~signmcnt wa~ net based on a requested minim{m} valuation, a specific valuation or Ibc ap~oval oF a Io~:.. "Neither m~ cngagemenl to make thi~ appraisal (or any ft~h~re appraisals fro' this client), nor any co~apcnsali~rx thetet~re, arc contingent [~p~m the repo~ing of a predctc~incd va[Lie or dircclion in value that tnvors Ibc ~:ause of the clicllt, thc anaoun[ of lhe value estimate, and attainnacnt of a ~tipulaled rcsuh, ~r the occt)~t:nt:e of a subsequcnt cvcnt,", ._. My contr[~clual ~angen~ent witt~ my client dues ~ol ~l~lhonze the out-or, context quoting, from or ps.iai rcpnnting of (his uppraisul report, tier d~s ir pc~it all or any p:~rt oC this appraisal report to be disscmina(cd to thc general p~;b}ic by Ihe ase of tho media for public communicalion without my written consent. 'I'h~ appraisal rep~r; cont'orm8 with thc "Uniforn~ Standards of Professional App,'sisal Practice" of the Appraisal round,Ilion, a~ mandated by thc Financial lnsthution~ Refo~. Recovery, and E.r~.mcement Act of 1989 ~FIRRF, A), and an~ special appraisal assignment guidelines and/or instz'uction stated in the engagement N1N Certified General IJcense ~4~1467 - ~/7/~ MN Registered Real P,'o~,'ty Lic¢nse ~2~82492 Jun-02-98 O1:20P lisa kugler 824 B672 P.O9 _.. Jun-02-98 01:20P lisa kugler 824 8672 P. 10 ' CONTINGENT ASSllMPTIONS AND LIMITING CONDITIONS Thc ccrtificatim~ of thc appraiser appearing in this appraisal report is subject lo thc following conditions and to such other specific and limiting conditions as are set forth by thc appraiser in thc report. I. Thc legal de~riptiofl fiirnish~ to the appraiser or secured from public reco~s is assumed to ~ correct. 2. Thc appraiser assumes 0o responsibilities for matters legal in character, nor docs the appraiser 'render any opinion a~ to fitlc~ which is assumed m hc ~d ami marketable, All c~sfing liens and cncumbrancc~ have bccn dlsregardcd and the prop~ty is appraised as though free and ~lcar, and under responsible ownership and competent managemcnc 3. Any sketch in this rc~r~ is included to assist the reader in visualizing thc pro~rty. Thc appraiser ha~ made no so~ey of thc prope~y and as~llBes no responsibility in connection with such matters, Unless otherwise noted herein, it is assumed thal there arc no encroachmcnu~, ~oni~lg violations or rcstriclions existing in thc subject pmpc~y. 4. lnfo~ation, estimates, and opinions, lhrnished to thc appraiser and contained in this report were ubtain~ fi'om murces considered to be reliable and belle~:~ to be ~'ue and coffc.ct. However, no liability lbr 0~em can bc assum~ by th~ appraiser. 5. The appraiser assumes that there are no hidden or ~on-appa~n( conditions of the pro~rty, sub~il, or struc~ure~ which would render it more or less valtmblc. The appraiser 8ssuil~es no re~ponsibili(y Ibr such condition~ or tbr engineering which might I~ rcqui~d to discover s~'h lhctors, fi. Disclosure of thc contents of thc appraisal report i~ gogcrned by thc bylaws and regulations of the pml~ssional ap~aizal o~anizution with which the appraiser is affiliutcd, On all appraisals involving proposed construclion subject to satishctory complction, repai~, or 0lterations~ the appraisal report and value conclusion are contingent upon conlplelion of thc proposed Jmpmvclllellls in a workmm~iikc manner e~sentially in accordance with the plans and specifica6ons submitted l~r review to lbo appraiser. 8. The appraiser is not required ~o give testimony or atttndancc in court by reamm of this appraisal, wilh ret~rcnce to the pro~'rty in question, unless ar~ngements ~e been made previously thereof. 9. The market value herein reporled is based on economic and market conditions which are applicable as of the dale of thc appraised value. This markel valuc ~ay be the same but also may vary at a later date duc to changing market or ecom~mic condi0ons. It is thc appraiser's opinion that the subject property would sell in an appropriate time period should it ~- offered on thc open real esla~e market at the date oF appraisal at a~mt tl~e appraised ~alue s[~[~}ect to thc appraisal asmmptionsl but a glmrantec of such a sale is not implied or w~mnted. II). Neither all, nor any part of the content al' Ibe repnn, or copy thereof (including cvnclt~sions a~ m thc pro~rty valuc, thc identity of the appraiser, profcssiomd designations, rclkmnce to any protkssionaI appraisal ~wganim~llon~, or the lirm with which the appraiser i~ connected), shall be used tier any purpoqes by any~mc bo[ die client specified in thc report, the borrowcr if appraisal ~ee is paid by sam~, the mo~gagce or its saccessor~ and ~signs, mo~gagc insttt~r~, consultants, ptofesnional app~isnl orga~izati{ms, any stare or lbderally approved financial in~tigution.m any department, agency, or h~nrrumcnta}ity or ghe United States or any state or the Dislricl of Columbia, wilho0t the previous written conscnl of lhe appraiser; nor Jun-02-98 O1:20P lisa kugl~r 824 8672 P_ 11 .~hali it be cotlveyed by anyone [o the public through advertising, public relations, l~ew~ salcs, or_ other media, without thc written consclll and approval of thc apprals~r. - 1 I. Thc appraisal report and ils co*~tents illtlSl b~ rcgard~ as a whole and any cxcer~s from this app,'sisal can not be used separalcly and if used separately, illvalidatcs this appraisal, The division ~dislribution of land and improvcmen~ values esUmated herein is applicable only under the program of _ utili~ation shown. These separate valuations ~e invalidated by any othc~ application and mus~ no~ ~ used in c~mjunction with any o~her appraisal. 12. It is asxUmcd that there is fimlt compliance with all applic~bl~ federal, state sad local environmental -- regulations and laws unless noncompliance is stated, defined and considered in Ibc appraisal ~t. 13. It is assumed that all applicable zoning and usc regulations and restrictions have been complied wJlln, unless a nonconlbm)ity has ~cn stated, defincd and considercd in ~e appraisal rc~nt. 14. 11 is a~sumccl that all required licenses, consents or other legislative or administrative authority IY[~m fitly local, state, or national governmental or private entity or organizalion have been or can be obtained or renewed for any use on which thc wlue estimate contai~ed in this rein is t~nsed. 15. It is assumed that ~l~e utilization of lhe land is wiU6n the boundaries or property lines of the property described arid that thc~ is no encroachment or trespass unless noted within thc re~rt, 10, No environmental impact studies were either ~qucsted or made in conjunclion with this ap~aisal, and thc appraiser hereby rescues the right to alter, amend, revise, or rescind any of thc value hased upon any subsequent environmental impact, studies, research ~ investigation, 17, In this appraisal assignment, thc existence of potentially hazardous material used in construction or maintenance of U~e building, such as the presence of urea Ib~aldehyde foam insulation, a~or existence of toxic waste, which may or lpay not be present on the property, has not b~n considered unless otherwisc noted in this rc~rt, The appraiser is not qualified to detect such substances. l ~, Acccplal~ce of an~or use of thi~ appraisal repol~ constitutes acceptance of thc Ik~rcguing general -- , a~sumptions and limiting conditionn. i9 Unless ofl~e~isc sta(eJ in this re.rt, the ~xiatencc of ~ten6ally hazardous material.~, which may be present at the st]hjcct property, were apl observed by thc apprai~r. I have no knowledge of thc existence of haz~dous or pntcntial-ly hazardous materials on. in, or afl. ting fl)e subject pro~rty, however, I am not qualifi~ m detect such substances. The presence of haz~dous materials may negatively affect thc value of ~hc su~iect properly, This value estimate is predicated on lbo asnumption that there are no hazardous materials on, i~, or ~tcnlialty affecting thc subject pro~rty that would cause a loss in value. 20, Thc Americans with DisabiUfie~ Act (ADA) became effective January 26, 1992. l have not made _ a specific compliance ~u~cy and m~alysis of the subject property to determine whcthcr or nut il is i~ conlbrmily withthe various detailed requirements of the ~)A, A survey of the subject could reveal ~hc pr~eny in not in cos~pliancc with one or more of thc rcqui~mencs of thc ADA. {f ~o, this fact could have a negative impllct u~n thc value of the propc~y, i did not consider pussibl~ non-compliance witl~ the ~ ~quirements of thc ADA in estimating llxe value of thc s~ject propcay, 2 I. 'l'here may be other assumptions and limiting conditions not menlioned above which have I~en _. ptx~viously dcscri~t in this appraisal report. Jun-02-98 O1:20P lisa kugler 824 8672 P. 12 ~ - , Ellen B. Herman, MAI Appraiser's Qualifications Education: _ University of New Hampshire, Durham, blew Hampshire. Or'urinated in 1975 with a Bachelor of Science degree. Appraisal Institute, Chicago, Illinois. Successfully completed Examinations - IA-i and IA-2 in July 1980, examinations IB-I and lB-2 in July 1985, examinations 2-1 and 2-2 in August, 1986, examination Standards of Professional Practice P,'un A in August 1993, and examination Standards _ of Professional Practice Part B in March 1995. Attended the following seminars sponsored by the Appraisal Institute fi}rmerly the AIREA. Adjusting For Financial Differences in Residential -- Properties, April 1985. R-41-B and the Appraiser, lanu,'u'y 1985. Risk Analysis for Real Estate Investments, May 1988. Ctmdemnation Valuation, November 1989. l~eased Fcc Valuation, March 1990. -- Appraising Troubled Propetlies, December 199 t. The Americans with Disabilities Act (ADA), May 1992. Condemnation: Legal Rules and Appraisal Practices, July 1992. Mortgage Appraisal Trends From A _ Major Lender's Perspective, January 1993. The New URAR Form, December 1993. Minnesota Econmny,.U.S. Economy & Implications on Real Estate, Pebruary 1994. Metropolitan Land Usc Trends, May 1994. Geographic Information Systems, January, 1995. Upscale - Urban Townhouse Development, February, 1995. Renovation (ff Historical Structures for Affordable ttousing, March, 1995. Effective t Marketing for Appraisers, April, 1995. A case s udy-Crystal Lmke Golf _ Course and Residential Community in Lakeville, MN. September, 1995, Business Valuation, Parts I and 2, October, 1996. Tomorrow's Appraiser, October, 1996. Work Experience: -- 4/83 to Present - Owner, Hermm~ Appraisal Services, Inc., a full service real estate and business appraisal and consulting firm, specializing in conuuerciai and residential real estate and business valuations, expert _ testimony f~r court proceedings, subdivision analysis, feasibility and highest and best use studies, and appraisal review. 6/80 to 4/83 - MN Department of Natural Res~mrces, Acquisition and -- Exchange Scction. Senior Appraiser - responsible for appraisals, appraisal reviews, and negmiations for ali types o[ DNR land acquisitions. Jun-02-98 01:21P lisa kugl~r 824 8672 P. 13 8/77 to 6/80 - MN Department of Natural Resources, Rivers Section. Rivers Project Coordinator - responsible for land use planning, acquisition planning and recreation management on rivers proposed for -- inclusion in the Minnesota Wild and Scenic Rivers Program. Professlonal Activities: Served as a principal speaker at the following seminars: Eminent Domain, sponsored by the Minnesota Institute of Legal Education, March 1995. _ Land Preservation Forum, sponsored by the Minnesota Land Trust, Februm? 1995. Strategies and New Developments in Eminent Domain, sponsored by the Minnesota Institute of Legal Education, January, 1997. Member of the Appraisal Institute Chapter Nominating Conunittee, 1995. Professional Affiliations and Designations: Designated member of thc Appraisal Institute (MAI) State of Minnesota . Certified General Real Property Appraiser - ID 4t4(X)1467, this level 4 license pemaits appraisal of 'all properly types. Member - International Right of Way Association. Member - The Institute of Business Appraisers, Inc. Expert Witness - Qualified as expert witness in real estate and business v,'tluation matters in District and Federal Courts. Commissioner - District Court appointed cotmnissioner in condemnation ptx)ceedings in Hennepin County. Jun-02-98 O1:21P lisa kugler 824 8672 P. 14 · Barbara A, Blackburn Appraiser's Qualifications ' Education: - University of Wisconsin, River F,'dls, Wisconsin. Graduated in 1987 with a Bachelor of Science degree in Business and Computer Science. double ma. ior, - Prosourc¢ Educational Services. Successfully completed thc following appraisal and continuing education courses: - Homc Inspection I ,and II Appraisfl 101' Principles I Appraisal 102: Principles II _ Appraisal 103: Practices [ Appraisal ! 04: Practices Il Appraisal 11)5: Standards and .Ethics Work Experience: - 11/96 to Present - Associate Appraiser, Herman Appraisal Services, Inc., a full service real estate appraisal and consulting firm, specializing in conul~ercial real estate. 6/87 to 11/96 - DPRA Incorporated, an Environmental Consulting firm. Asstxziate Environmental Analyst - conducted Phase I Environmental Property Assessments, enviromnental compliance audits, and remedial .... investigations. In addition, performed numerous asbestos and lead- based paint inspections, Profe.q~ional Affiliations: State of Mimlesota, Registered Real Property Appraiser - ID ~v20082492 State of Minnesota licensed Lead-Based Paint Inspector State of Minnesota, Wisctmsin, and Michigan Licensed Asbestos Inspector Jun-02-98 01:21P lisa kugler 824 8672 P_15 Jun-02-98 O1:22P lisa kugler 824 8672 P. 16 -- BARBAP~ ANN BLACX<BUP~ 220T'~ ~TA~ON AVE N FOILF.~ LAI~, lvlN ~02~-0000