092898 EDA Official File Copy
CITY OF NEW HOPE
EDA AGENDA
EDA Regular Meeting #7 September 28, 1998
Agenda #7
President W. Peter Enck
Commissioner Sharon Cassen
Commissioner Don Collier
Commissioner Pat La Vine Norb¥
Commissioner Gerald Otten
1. Call to Order
2. Roll Call
3. Approval of Minutes of August 24, 1998
4. Resolution Authorizing Funding for Acquisition of Property Located at
7332 Bass Lake Road by Project for Pride in Living, Inc. for Bass Lake
Townhomes Project (improvement Project No. 614)
'5. Discussion Regarding Release of Security on Mortgage for Property
Located at 7709 42nd Avenue North (Improvement Project No. 467)
6.. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes August 24, 1998
Meeting #6 (Meeting held at Northwest Community Television Studio)
CALL TO ORDER President Enck called the meeting of the Economic Development Authority to
order at 8:13 p.m.
ROLL CALL Present: Enck, Cassen, Collier, Norby
Absent: Otten
Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Henry, French,
Clancy
APPROVE MINUTES Motion was made by Commissioner Norby, seconded by Commissioner Cassen, to
approve the EDA minutes of August 10, 1998. All present voted in favor. Motion
carried.
IMP. PROJECT 645 President Enck introduced for discussion Item 4, Motion Authorizing Staff to
Item 4 Obtain Appraisals of Regent Apartments at 7136 60th Avenue, 6017 Louisiana
Avenue, and 7124 Lombardy Lane (Improvement Project No. 645),
Mr. Kirk McDonald, Director of Community Development, reported that the EDA
recently considered a fmancial assistance request from the property owners of
Regent Apartments. The EDA has targeted the entire 62~ Avenue and West
Broadway area for future upgrading and redevelopment. The Regent Properties'
partners are interested in exploring the possibility of selling the properties to the
City at a fair selling price.
Mr. McDonald stated the property is located in an area where TIF funds can be
expended which are generated from other districts. He stated an appraisal of the
property would be paid for with EDA or TIF funds. Staff would like to explore
the option of demolishing the properties and reselling the property to a developer.
He noted staff's intent to discuss the property with the owners of Broadway Village
and Anthony James Apartments.
Commissioner Collier recommended obtaining the appraisals to determine whether
acquisition is even feasible.
MOTION Motion was made by Commissioner Collier, seconded by Commissioner Cassen,
APPRAISALS authorizing staff to obtain appraisals of Regent Apartments properties. All
Item 4 present voted in favor. Motion carried.
IMP. PROJECT614 President Enck introduced for discussion Item 5, Resolution Approving
Item 5 Amendment No. 1 to the Initial Agreement Between Economic Development
Authority in and for the City of New Hopeand the Minneapolis Public Housing
Authority (Improvement Project No. 614).
Mr. Kirk McDonald stated at the July 27 EDA Meeting, the EDA approved the
initial agreement with the Minneapolis Public Housing Authority for the PPL/Bass
Lake Townhomes Project. This action transfers the responsibility to the MPHA.
The EDA briefly discussed the PPL project schedule.
New Hope EDA August 24, 1998
Page 1
RESOLUTION Commissioner Norby introduced the following resolution and moved its adoption:
EDA 98-09 "RESOLUTION APPROVING AMENDMENT NO. 1 TO THE INITIAL
Item 5 AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF NEW HOPE AND THE
MINNEAPOLIS PUBLIC HOUSING AUTHORITY (IMPROVEMENT
PROJECT NO. 614)". The motion for the adoption of the foregoing resolution
was seconded by Commissioner Collier, and upon vote being taken thereon, the
following voted in favor thereof; Enck, Cassen, Collier, Norby; and the following
voted against the same: None; Abstained: None; Absent: Otten; whereupon the
resolution was declared duly passed and adopted, signed by the president which
was attested to by the executive director.
ANNOUNCEMENTS President Enck thanked Northwest Community Television personnel for providing
the facility for the recent Council and EDA Meetings.
ADJOURNMENT Motion was made by Commissioner Collier, seconded by Commissioner Cassen,
to adjourn the meeting. All present voted in favor. The New Hope EDA
adjourned at 8:24 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA August 24, 1998
Page 2
Originating Depaxl~uent Approved for Agenda Agenda Section
Community Development "X'-, -'
8
Item No.
By: Kirk McDonald B~:. ,/~ I 4
RESOLUTION AUTHORIZING FUNDING~//O,~ACQUISITION OF PROPERTY LOCATED AT 7332
BASS LAKE ROAD BY PROJECT FOR P_,R"rDE IN LIVING, INC. FOR BAss LAKE TOWNHOMES
PROJECT (IMPROVEMENT PROJECT N~. 614)
The City Attorney has prepared the enclosed resolution authorizing EDA funding for the acquisition of
the office building property at 7332 Bass Lake Road by Project for Pride in Living. The City has
committed to a redevelopment project with PPL at this site as the City's goal is to allow PPL to acquire
the property at this time so that the office building can be razed as soon as possible and in conjunction
with the acquisitions and razing of the Spur station at 7300 Bass Lake Road adjacent to the site.
The EDA entered into a Redevelopment Contract with PPL on February 11, 1998. The contract does not
permit any funding from the EDA for the project at this time because Section 5.1 of the agreement
indicates the EDA will advance funds only for reimbursement after title has been acquired. PPL has a
signed purchase agreement with the fee owners of the property to acquire it for a purchase pdce of
$235,000. However, PPL has not yet secured and finalized the necessary commitments for all project
financing, and as a result PPL has not been able to close on its acquisition of the 7332 Bass Lake Road
property. Section 5.1 of the contract provides that the EDA will fund for PPL up to $1,400,000 for, among
other things, reimbursement for PPL's land acquisition costs, but only after PPL has acquired title to the
"under contract" land.
This resolution states that, not withstanding the funding restriction of the Redevelopment Contract, the
Executive Director is hereby authorized to advance and disburse to PPL the amount of $235,000 for the
purpose of acquiring fee title to the property at 7332 Bass Lake Road to facilitate PPL's acquisition of the
property and demolition of the building. The action will assist the development and construction of the
Bass Lake Townhomes Project in a cost effective and timely manner. The payment would be considered
as part of the EDA's funding commitment under the Redevelopment Contract and not in addition thereto.
Staff recommend approval of the resolution.
!
I RFA-O01 ~
JENSEN SWANSON & SONDRALL, P.A.
Attorneys At Law
8525 ED/NBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1999
TELEPHONE (612) 424-8811 ® TELEFAX (612) 493-5193
GOd, DON L, J~NS~-N*
WILLIAM G. SWANSON
STEVEN A. SONDRALL
MICHAELR. LAFL£UR September 24, 1998
MART~N P. M3~LECHA
B~rr^. PF~¥* Kirk McDonald
c.~E~s0~t City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
oF COUNSEL
LO--SQ. BRY~m~D RE: EDA Resolution Authorizing
Funding PPL's Purchase Of
7332 Bass Lake Road
Our File: 99.11200
Dear Kirk:
Please find enclosed a proposed EDA Resolution Authorizing
Funding For Acquisition Of Property At 7332 Bass Lake Road
By Project For Pride In Living for consideration at the
September 28, 1998 EDA meeting. This resolution is
necessary because our February 11, 1998 Redevelopment
Contract does not permit funding at this time. As pointed
out in the resolution, Section 5.1 of the agreement
indicates the EDA will advance funds only for reimbursement
after title has been acquired. By this action, we are
assisting PPL by funding their acquisition of title.
Since the EDA is also in the process of condemning the
adjacent Spur station, it is my understanding staff wishes
to assist PPL in their acquisition efforts for 7332 Bass
Lake Road so the office building on 7332 and the gas
station can be demolished at the same time. The enclosed
resolution will allow this to occur.
Further, I didn't know if the EDA was also going to provide
funds to PPL for the demolition as well. Therefore, I have
provided paragraph 3 to the resolution and left the amount
blank. If, we are not going to assist on the demolition a
zero can be written into paragraph 3 or I can provide you
with an amended page 2 deleting this paragraph.
V~ly yours,
Steven A. Sondrall
attachments
*R~al ~{~"Bt Law
Certified ~y TI~
Minn.o~St~a,r CC: Valerie Leone
Association
H~ualified ADR Neutral
EDA RESOLUTION NO. 98-
RESOLUTION AUTHORIZING FUNDING FOR
ACQUISITION OF PROPERTY LOCATED AT
7332 BASS LAKE ROAD BY PROJECT FOR
PRIDE IN LIVING, INC FOR BASS LAKE
TOWNHOMES PROJECT
BE IT RESOLVED by the Economic Development Authority in and
for the City of New Hope as follows:
WHEREAS, The Economic Development Authority in and for the
City of New Hope (EDA) has entered into a February 11, 1998
Redevelopment Contract (Contract) with Project For Pride In Living,
Inc., a Minnesota non-profit corporation (PPL) for the purpose,
among others, of providing affordable housing within the City, and
WHEREAS, the project area for the housing project includes
property located at 7332 Bass Lake Road (property) legally
described as follows:
the south 145.2 feet of the west 100 feet of Lot 32,
Auditor's Subdivision No. 226, together with that part
of Bass Lake Road lying northerly of the center iine
thereof and between the southerly extension of the east
and west lines of said parcel: subject to roads, in and
for Hennepin County, and
WHEREAS, PPL has a signed purchase agreement with the fee
owners of the property to acquire it for a purchase price of
$235,000.00, and
WHEREAS, PPL has not yet secured and finalized the necessary
commitments for all project financing, and as a result PPL has not
been able to close on its acquisition of the 7332 Bass Lake Road
property, and
WHEREAS, Section 5.1 of the Contract provides that the EDA
will fund for PPL up to $1,400,000.00 for, among othe~ things,
reimbursement for PPL's land acquisition costs, but only after PPL
has acquired titled to the "under contract" land, and
WHEREAS, the EDA is desirous for PPL to acquire the property
at this time so that the office building located thereon can be-
razed in conjunction with the City's efforts to acquire and raze
the Spur Gas Station located adjacent to the 7332 BaSs Lake Road
property.
NOW, THEREFORE, BE IT FURTHER RESOLVED by the Economic
D~velopment Authority in and for the City of New Hope:
1
1. Not withstanding the funding restriction of Section 5.1 of
the Redevelopment Contract between the EDA and PPL, the Executive
Director is hereby authorized to advance and disburse to PPL the
amount of $235,000.00 for the purpose of acquiring fee title to the
property at 7332 Bass Lake Road, as legally described above, to
facilitate PPL's acquisition of the property and demolition of the
office building located thereon. This will assist the development
and construction of the Bass Lake Townhomes Project in a cost
effective and timely manner.
2. This payment shall be deemed as part of the EDA's funding
commitment obligation under the Redevelopment Contract and not in
addition thereto.
3. The Executive Director is further a~thorized to advance and
disburse to PPL an amount not to exceed $ ~ .00 to assist PPL in
demolition of the office building on the site. These funds shall
also satisfy the EDA's funding commitment and shall not be in
addition thereto.
Dated the 28th day of September, 1998.
W. Peter Enck, President
Attest:
Daniel J. Donahue,
Executive Director
2
REDEVELOPMENT CONTRACT
This Agreement is made as of ~JW , 1998, by and between
the ECONOMIC DEVELOPMENT AUTHORITY in and for the City of New Hope,
a Minnesota Municipal Corporation (the "EDA") and PROJECT FOR PRIDE
IN LIVING, tNC., a Minnesota non-profit corporation
("Redeveloper").
WITNESSETH:
WHEREAS, the EDA was created pursuant to state law now
codified as Minnesota Statutes, Sections 469.001 through 469.047
(the "Act") and was authorized to transact business and exercise
its powers by a resolution of the City Council of the City of New
Hope, Minnesota ("City"); and
WHEREAS, in furtherance of the objectives of the Act, the Et)A
has undertaken a program for the clearance and redevelopment of
blighted, vacant and unused areas of the City and in this
connection is engaged in carrying out a redevelopment project as
defined in Minnesota Statutes, Section 469.002, Subdivision 12 (the
"Redevelopment Project"); and
WHEREAS, as of the date of this Agreement there has been
prepared and approved by the EDA and the City Council pursuant to
the Act a redevelopment plan for the Redevelopment Project (the
"Redevelopment Plan"); and
WHEREAS, the Redeveloper has proposed to redevelop a portion
of the property included in the area subject to the Redevelopment
Plan (the "Project Area") and the Redeveloper has requested that
the EDA provided financial aid and assistance to such project; and
WHEREAS, the EDA believes that redevelopment of the Project
Area pursuant to this Agreement is in the best interests of the
City and benefits the health, safety, morals and welfare of its
residents~ and complies with the applicable state and local laws
and requirements under which the Redevelopment Plan has been
undertaken and is being assisted.
NOW, THEREFORE, in consideration of the foregoing premises and
the mutual obligations set forth in this Agreement, the parties
hereto hereby agree as follows:
ARTICLE 1
Definitions
Section 1.1. Definitions. In this Agreement, unless different
meaning clearly appears from the context:
"Act" means Minnesota Statutes, Sections 469.001 through
469.047.
"Agreement" means this Agreement, as the same may be from time
to time modified, amended or supplemented.
"Certificate of Completion" means a certificate in the form
attached as Exhibit A, to be provided to Redeveloper pursuant to
this Agreement.
"City" means the City of New Hope, Minnesota, a Minnesota
municipal corporation.
"Construction Plans" means detailed plans and specification
for the renovation of the Project in the form required to be
submitted to the City prior to the issuance of a building permit.
"Event of Default" means as set forth in Section 7.1 hereof.
"EDA" means the New Hope Economic Development Authority, a
public body corporate and politic under the laws of the State of
Mi nnesot a.
"Loan" means the loan to be made by the EDA to the Redeveloper
in accordance with Article 5 hereof.
"Plans" means the concept plans, specifications, drawings and
related documents for the Project which shall include a site survey
and plan of the Project Area; dimensioned site plan; grading and
drainage plan; utility plans; landscaping plans; colored building;
elevations showing the exterior building treatments; and property
fence detail as the same may be submitted to and approved by the
EDA and the City.
"Project" means the acquisition of the land and existing
improvements in the Project Area and renovation thereof into 34
rental townhouse units and related common areas and site
improvements, all as further described in Schedule B attached to
this Agreement. The Project will proceed in accordance with
Article 3 hereof.
"Project Area" means the land legally described on Schedule A
attached. "
"Project Financing" means financin9 to he obtained by the
Redeveloper in order to pay the Costs of the Project including the
Loan to be made hereunder and additional financing to be obtained
from the Minnesota Housing Finance Authority ("MHFA") in the
approximate amount of $1,330,000; the Family Housing Fund ("FHF")
in the approximate amount of $340,000; the Minneapolis Public
Housing Authority ("MPHA") in the approximate amount of $1,360,000
through the use of MHOP funds; and the proceeds of the sale of Low
Income Housing Tax Credits to the National Equity Fund or another
purchaser in the approximate amount of $1,506,000.
"Redeveloper" means Project for Pride in Living, Inc., a
Minnesota non profit corporation.
"Redevelopment Plan,' means Redevelopment Plan of the EDA which
relates to the Redevelopment Property.
"Section" means a Section of this Agreement, unless used in
reference to Minnesota Statutes.
"State" means the State of Minnesota.
"Unavoidable Delay" means, a failure or delay in a party's
performance of its obligations under this Agreement, or during any
cure period specified in this Agreement which does not entail the
mere payment of money, not within the party's reasonable control,
including but not limited to acts of God, governmental agencies,
the other party, strikes, labor disputes (except disputes which
could be resolved by using union labor), fire or other casualty, or
lack of materials.
ARTICLE 2
Representations and Warranties
Section 2.1. By EDA. EDA makes the following representations
to Redeveloper:
(a) EDA is an economic development authority duly organized
and existing under the laws of Minnesota. Under the provisions of
the Act, EDA has the power to enter into this Agreement and carry
out its obligations hereunder.
(b) The Redevelopment Project is a "redevelopment project"
Within the meaning of the Act and was created, adopted and approved
in accordance with the terms of the Act.
(c) The EDA has takers all actions necessary to make the Loan
and provide the additional assistance described in Articles 3 and
5 hereof and has funds available for such purposes.
Section 2.2. By Redeveloper. Redeveloper represents and
warrants that:
3
(a) Redeveloper is a non profit corporation duly organized
and validly existing and in good standing under the laws of the
State of Minnesota, has power to enter into this Agreement, and by
proper corporate action has duly authorized the execution, delivery
and performance of this Agreement.
(b) Redeveloper will, subject to acquisition of all the land
in the Project Area; receipt of all approvals requ'ired by the City;
receipt of the proceeds of the Project Financing; and Unavoidable
Delays; commence construction of the Project within two years after
the date hereof and complete the Project within two years after the
commencement date in accordance with the terms of this Agreement.
(c) Redeveloper has received no notice or communication from
any local, state or federal official that the activities of
Redeveloper, the City or EDA with respect to the Redevelopment
Property may be or will be in violation of any environmental law or
regulation. Redeveloper is aware of no facts the existence of
which would cause it to be in violation of any local, state or
federal environmental taw, regulation or review procedure with
respect to the Redevelopment Property.
(d) Neither the execration or delivery of this Agreement, the
consummation of the transactions contemplated herein, nor the
fulfillment of or compliance with the terms and conditions of this
Agreement is prevented by, limited by, conflicts with, or results
in a breach of, any restriction, agreement or instrument to which
Redeveloper is now a party or by. which it is bound.
(e) The Redeveloper would not undertake the Project but for
the financial assistance being provided by the EDA hereunder.
(f) No member of the governing body of the (City or EDA or any
other officer of the City and EDA has any direct or indirect
financial interest in the Redeveloper, the Redevelopment Property
or the Project,
ARTICLE 3
The Pro~ect
Section 3.1. Planning.
(a) Redeveloper shall submit to the EDA and the City plansand
specification for the Project including without limitation the
Plans and Construction Plans. The EDA shall have the right to
approve the Plans and Construction Plans, which approval shall not
be unreasonable withheld and as to the Construction Plans shall be
given so long as the Construction Plans conform to the Plans, the
terms of this Agreement and applicable codes and ordinances. The
EDA ackoowledges that the changes in the Plans may be required in
connection with obtaining Project Financing. The EDA will assist
the Redeveloper in obtaining approval of the Plans and the
Construction Plans from the City and all other governmental
authorities having jurisdiction including, without limitation,
obtaining required rezoning, of the Project Area to R-3; replatting
of the Project Area into single lot; obtaining any conditional use
permits and variances required under City codes and ordinances. No
material change in the Project which shall be inconsistent with the
Plans shall be made after the Plans have been approved and prior to
the issuance of the Certificate of Completion without the prior
approval of the EDA. Redeveloper acknowledges and agrees the EBA
shall not be required to fund any portion of the loan provided by
Article 5 herein until the Redeveloper has acquired all of the
project area identified as "under contract" on Schedule A, has
secured all of the necessary commitments for project financing as
determined by the EDA and has obtained approval for all plans and
construction plans from all governmental entitles with jurisdiction
over same as also determined by the EDA.
(b) No approval .by the EDA shall relieve Redeveloper of the
obligation to comply with the terms of this Agreement, applicable
federal, state and local laws, ordinances, rules and regulations.
No approval by that EDA shall constitute a waiver of an Event of
Default. Any disapproval of the ConstruCtion Plans shall set forth
the reasons therefor, and shall be made within 30 days after the
date of their receipt by the EDA. If EBA rejects the Plans, in
whole or in part, Redeveloper shall submit new or corrected Plans
within 30 days after written notification to Redeveloper of the
rejection. The provisions of this Section relating to approval,
rejection and resubmission of corrected Plans shall continue to
apply until the Plans have been approved by EDA,
Section 3.2 ACquisition of the Project Area.
(a) Redeveloper represents that it has Purchase Agreements for
each of the lots identified on Schedule A as being "under
contract" Redeveloper agrees to continue negotiation for the
acquisition of the remaining lots identified on Schedule A as
"under negotiation", Subject to receipt of approvals from the City
and the EDA; receipt of commitments for the Project Financing and
Unavoidable Delays, Redeveloper will use its best efforts to
complete the acquisition of the Project Area.
(b) If Redeveloper shall be unable through private negotiation
to acquire all the Project Area "under negotiations" as identified
on Schedule A, the EDA agrees to initiate action to condemn or
otherwise acquire the "under negotiation" areas not acquired
through private negotiation. After condemnation the EDA shall
convey the condemned properties to Redeveloper subject to payment
by Redeveloper as follows: subject to receipt of the increased
proceeds of the Loan from the EDA in accordance with Section 5.1
hereof the Redeveloper shall pay to the EDA all costs and expenses
of any condemnation proceedings including, but not limited to, the
amount of the final award payable to the owners of the property
condemned, any relocation costs, all fees charged by the
commissioners appointed to determine the final award of damages,
all appraisal fees, all expert witness and other witness fees and
attorney's fees. Redeveloper acknowledges and agrees the £DA shall
not be.required to initiate any condemnation action for acquisition
of property until it is satisfied Redeveloper has commitments for
all project financing necessary to complete the Project.
Section 3.3 Construction of the Project and Certificate of
Completion.
(a) Subject to acquisition of the Project Area; receipt of all
necessary permits and approvals; and receipt of Project Financing,
Redeveloper shall promptly begin the Project and diligently
prosecute the Project to completion. Redeveloper shall make
reports, in such detail and at such times as may reasonably be
requested by the EDA, as to the actual progress of Redeveloper with
respect to the Project. All work with respect to the portion of
the Project consisting of construction shall be in substantial
conformity with the Construction Plans approved by the EDA.
(b) Promptly after completion and 100% occupancy of the
Project in accordance with this Agreement, Redeveloper will provide
the EDA with a certificate in form satisfactory to the EDA executed
by the Redeveloper certifying that the Project has been completed
in accordance with the Plans and the Construction Plans, and is
100% occupied. Upon receipt of such certificate and verification
of those facts, the EDA will furnish Redeveloper with an
appropriate Certificate of Completion as conclusive violence of
satisfaction and termination of the agreements and covenants of
this Agreement with respect to the obligations of Redeveloper to
complete the Project.
(c) If the EDA shall refuse or fail to provide the Certificate
of Completion, the EDA shall, within i5 days after the Redeveloper
provides the certificate referenced in Section 3.3(b), provide
Redeveloper with a written statement specifying in what respects
Redeveloper has failed to complete the Project in accordance with
this Agreement, or is otherwise in default, and what measures or
acts will be necessary, in the opinion of the EDA, for Redeveloper
to obtain the Certificate of Completion.
6
(d) Not withstanding the issuance of the Certificate of
Completion, Redeveloper shall continue to allow representatives of
the EDA to monitor and inspect the Project during normal business
hours and after at least one business day notice, or earlier in the
case of emergency. Redeveloper shall also attempt to cause the
other providers of the Project Financing to allow the EDA to
participate in and receive the reports of such provider's
monitoring and inspection procedures.
ARTICLE 4
Defense of Claims
Section 4.10efense of Claims. Redeveloper shall indemnify and
hold harmless the EDA and the City and their respective officers,
employees and agents for any loss, damages and expenses (including
attorneys' fees) in connection with any claims or proceedings
arising from damages or injuries received or sustained by any
person or property by reason of any actions or omissions of
Redeveloper or its contractors, agents, officers or employees or
arising out of or relating to this Agreement or the transactions
contemplated by this Agreement, other than claims or proceedings
arising from any negligent or unlawful acts or omissions of the
EDA, the City or their contractors, agents, officers or employees,
and in connection with any claims or proceedings related to payment
of relocation benefits to any person as a result of any
redevelopment of the Project Area by the Redeveloper. Promptly
after receipt by the EDA or City of notice of the commencement of
any action in respect of which indemnity may be sought against
Redeveloper under this Section 4.1, such person will notify the
Redeveloper in writing, of the commencement thereof, and, subject
to the provisions hereinafter stated~ the Redeveloper shall assume
the defense of such action (including the employment of counsel,
who shall be counsel reasonably satisfactory to the EDA or City, as
the case may be, and the payment or expenses) insofar as such
action shall relate to any alleged liability in respect of which
indemnity may be sought against the Redeveloper. The EDA or the
City shall have the right to employ separate counsel in any such
action and to participate in to defense thereof, but the fees and
expenses of such counsel shall not be at the expense of the
Redeveloper unless the employment of such counsel has been
specifically authorized by the Redeveloper. The Redeveloper shall
not be liable to indemnify any person for any settlement of any
such action effected without its consent. The omission to notify
the Redeveloper as herein provided will not relieve it from any
liability which it may have to any indemnified party pursuant
hereto, otherwise than under this section.
7
ARTICLE 5
The Loan
Section 5.1 The Loan. At such time as Redeveloper shall have
acquired ~ne "under contract" land within the Project Area, secured
the necessary commitments for project financing, obtained the
cecessary approvais for the plans and construction plans and
provided the loan agreement, mortgage note and mortgage required by
§5.3 ~ere~n, the EDA shall loan funds to the Redeveloper in the
amount of $900,000. If the amount paid or payable to the EDA by
reason of condemnation of t~e "under negotiation" ]and ~n the
Project Area in accordance with Section 3.2(b) hereof is greater
~n $250,000, the amount of the Loan shall be increased by such
excess but not to exceed $500,OO0.00. The Loan shall be without
~n~erest and shall be advanced by the EDA based upon draw requests
from the Redeveloper as work progresses. The proceeds of the Loan
s~a]i be used by the Redeveloper to pay or reimburse Redeveloper
for costs related to the Project including without limitations land
acqu~sis~on costs, architects and engineers' fees and the cost of
construction of the Project. EDA acknowledges and agrees that the
proceeds of the Loan may at the request of Redeveloper be advanced
prior to the proceeds of any other Project Financing. EDA shall
r-ere;ye cop~es from Redeveloper of all draw requests for advances
of Project Financing whether from the Loan or from other sources.
~epresentat~ves of the EDA shall be notified of all construction
draw meetings and inspections and be entitled to attend the same.
Section 5.2 MHOP. EDA acknowledges that it is anticipated
that approximately 12 of the units in the Project wilt be
designase~ as units having the benefit of financing from the
Metropolitan Housing Opportunity Program ("MHOP"). Participation
in the MHOP requires that at least 70%, of the MHOP units be first
offered for occupancy to qualified persons on the waiting list
maintained by the MPHA and the remaining 30%of the MHOP units be
offered for occupancy to qua]ified persons on a waiting list
maintained by the EDA. EDA agrees to create and maintain such a
waiting ]ist in accordance with MHOP requirements. MHOP units wi1]
aiso be subject to a program of payments in lieu of taxes ("PILOT")
for a period of forty years. The PILOT program requires the rea~
estate taxes attributable to MHOP units to be an amount no greater
than 5%, of the approved tenant rents for the MHOP units. EDA
agrees to abide by the MHOP requirements and to assist the
Redeveloper in obtaining approval of the PILOT program.
Section 5.3 Oo~latera~. The Redeveloper shall also enter into
a ~oan agreement, mortgage note and mortgage with the EBA to secure
tqe ~oan against the Redeveloper's interest in the Project. The
mortgage shal~ be subject and subordinate to the rights of the
8
other pdoviders of Project Financing. The loan agreement, mortgage
note and mortgage shall be in such form as shall be approved by the
EDA and the Redeveloper.
Section 5.4 Satisfaction. Upon issuance of that Certificate
of Completion, the Loan shall be deemed paid, the EDA shall satisfy
of record the mortgage and any other security interests it receives
and shall release the Redeveloper of all further obligation under
this Agreement.
ARTICLE 6
Prohibition on Transfer or Assignment
Section 6.1 Transfer or Assignment of Agreement. Prior to the
issuance of the Certificate of Completion, this Agreement may not
be transferred or assigned by the Redeveloper without the prior
written consent of the EDA, except to a limited liability company
or partnership in which Redeveloper is a member or partner.
ARTICLE 7
Events of Default
Section 7.1 Events of Default. The following shall be "Events
of Default" under this Agreement and the term "Event of Default"
shall mean, whenever it is used Agreement (unless the context
otherwise provides), any one or more of the following events which
occurs and continues for more than 30 days after notice by the EDA
to Redeve]oper of such default (and the term "default" shal] mean
any event which would with the passage of time or giving of notice,
or both, be an "Event of Default" hereunder):
(a) Failure of Redeveloper to complete the Project as required
hereunder.
(b) Failure of Redeveloper to observe and perform any other
covenant, condition, obligation or agreement on its part to be
observed or performed hereunder.
(c) If Redeveloper shall admit in writing, its inability, to
pay its debts generally as they become due, or shall file a
petition in bankruptcy, or shall make an assignment for the benefit
of its creditors, or shall consent to'the appointment of a receiver
of itself or of the whole or any substantial part of the
Redevelopment Property.
Section 7.2 Remedies on Default. Whenever any Event of
Default referred to in Section 7.1 occurs, the EDA may take any one
or more of the following actions:
(a) Suspend its performance under this Agreement until it
receives assurances from Redeveloper deemed adequate by the EDA,
that Redeveloper will cure its default and continue its performance
under this Agreement.
(b) Terminate all rights of Redeveloper under this Agreement.
(c) Withhold the Certificate of Completion.
(d) Take whatever action at ]aw or in equity may appear
necessary or desirable to the EDA to enforce performance and
observance of any obligation, agreement, or covenant of the
Redeveloper under this Agreement and/or to foreclose the Mortgage
received by the EDA subject to the rights of the other providers of
the Project Financing.
(e) Enforce all rights and remedies provided by the loan
agreement and mortgage subject to all rights of the providers of
project financing.
In the event any action is commenced against the Redeveloper
by the EDA or the City upon the occurrence of an Event of Default,
the party commencing such action shall be entitled to recover costs
and expenses of such action including reasonable attorneys fees
from the Redeveloper.
Section 7.3 No Remedy Exclusive. No remedy herein conferred
upon or reserved to the EDA is intended to be exclusive of any
other available remedy or remedies, but each and every such remedy
shall be cumulative and shall be in addition to every other remedy
given under this Agreement or now or hereafter existing at law or
in equity or by statute. No delay or omission to exercise any
right or power accruing upon any default shall impair any such
right or power car shall be construed to be a waiver thereof, but
any such right and power may be exercised from time to time and as
often as may be deemed expedient. In order to entitle the EDA'or
Redeveloper to exercise any remedy reserved to it, it shall not be
necessary to give notice, other than such notice as may be required
under this Agreement.
Section 7.4 W~ivers. All waivers by the EDA, shall be in
writing. If any provision of this Agreement is breached by either
party and thereafter waived by the other party, such waiver shall
be limited to the particular breach so waived and shall not be
deemed to Waive any other concurrent, previous or subsequent breach
hereunder.
10
ARTICLE 8
Additional Provisions
Section 8.1 Conflict of Interests: EDA and City
Representatives Not Individually Liable. No member, official,
employee, or consultant or employees of the consultants of the ED!N
or the City shall have any personal interest, direct or indirect,
in this Agreement, nor shall any such member, offi. cial, consultant
or the consultant's employees or employee participate in any
decision relating to this Agreement which affects his or her
personal interests or the interests of any corporation,
partnership, or association in which he or she is directly or
indirectly interested. No member, official, consultant or the
consultant's employees, or employee of the EDA or the City shall be
personally liable to Redeveloper, or any successor in interest, .in
the event of any default or breach by the EDA or the City or for
any amount which may become due to Redeveloper or successor or on
any obligations under the terms of this Agreement.
Section 8.2 Equal Employment. Opportunity. Redeveloper, for
itself and its successors and assigns, agrees that during the
construction of the .Project it will comply with any applicable
affirmative action and nondiscrimination taws or regulations.
Section 8.3 Restrictions on Use. Redeveloper agrees for
itself, and its successors and assigns, that Redeveloper, and such
successors and assigns, shall not discriminate upon the basis of
race, color, creed, sex or national origin in the sale, lease, or
rental or in the use or occupancy of the Redevelopment Property or
any improvements erected or to be erected thereon, or any part
thereof.
Section 8.4 Titles of Articles and Sections. Any titles of
the several parts, Articles, and Sections of this Agreement are
inserted for convenience of reference only and shall be disregarded
in construing or interpreting any of its provisions.
Section 8.5 Notices and Demands. Except as otherwise expressly
provided in this Agreement, a notice, demand, or other
communication under this Agreement by either party to the other
shall be sufficiently given or delivered if it is dispatched by
registered or certified mail, postage prepaid, return receipt
requested, or delivered personally as follows:
(a) in the case of Redeveloper, addressed to or delivered
personally to Redeveloper at:
Steve Cramer, President
Project For Pride [n Living, [nc.
2516 Chicago Avenue South
Minneapolis, Minnesota 55404
Attention: President
11
With copy to:
Lisa Kug]er
4737 Garfie]d Avenue South
Minneapolis, Minnesota 55409
(b) in the case of the EDA, addressed or delivered personally
to the EDA at:
Daniel J. Donahue, Executive Director
New Hope EDA
4401Xyton Avenue North
New Hope, Minnesota 55428
With copy to:
Steven A. Sondrall
Corrick & Sondrall, P.A.
Edinburgh Executive Office Plaza
8525 Edinbrook Crossing, Suite 203
Brooklyn Park, Minnesota 55443
or at such other address zenith respect to any such party as that
party relay, from time to time, designate in writing and forward to
the other parties as provided in this Section.
Section 8.6 Counterparts. This Agreement is executed in any
number of counterparts, each of which shall constitute one and the
same instrument.
iN WITNESS WHEREOF, the parties have caused this Agreement to
be duly executed as of the date first above written.
THE ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF NEW HOPE
Its E~'E~I ive Director
~ ~r~d~nt
SCHEDULE A
PROJECT AREA
The property in Hennepin County 'descr-ibed as:
Under Contract:
7302, 7306, 7308, 7312 and 7316 Bass Lake Road
Under Negotiation:
7300 8ass Lake Road
7304 Bass Lake Road
Southern 327 feet of land owned by School District 281
SCHEDULE B
PROJECT DESCRZPTZON
1. Number and Description of Units
Number Construction Bedrooms Baths Type Size Number
of Units Type sq ft of
units
per
bl dg
! ] 4 2 2 1 , 700 2
' :0urplex !bedrooms full story
20 ~ new 3 1 ·5 2 1,200
construction bedrooms 'story
TOTAL' ' ~ 12
34 units ' t bldgs.
After submission of the funding applications, the total number of
units and number MNOP units are subject to negotiation with the
Minnesota Housing Finance Agency, Minneapolis Public Financing
Authority and Department of Housing and Urban Development and are
thus subject to change.
2. Rents and Occupancy
Market Rat e MHOP I TOTAL
4 bedroom 8 8 ' 14
Rehabilitation
3 bedroom 14 6 20
Rehabilitation
TOTAL: 22,i 12 I 34
Type ! Rent ~ncluding Rent i Occupancy
I tenant utility Restriction Restriction
i allowance
Market Rate S745 - 3 bed 30% of 50% of initial income
median income below 50% of
1st 5 years, median,
then 60% currently at
$30,950 (1996)
60% of median
currently
$37,140
MHOP 30% of tenant not applicable 8 units
income initially
offer to
Minneapolis
residents;
minimum of 4
reserved for
t New Hope ,
3, Site Plan
· A totlot with play equipment will be included in
courtyard area.
· Creating decks above the four-plex garages is being
explored.
· PPL will have on-site staff and an on-site office.
A wood or wrought iron (based on cost consideration)
fence and landscaping will separate access drive from
adjacent backyards.
Breckenridge Group Home will remain; PPL will provide
landscaping and exterior improvements to match building
to others.
Proposed Project Financing
Type Lender/Investor Terms
First Mortgage Minnesota Housing 6.9% 24 year term
Finance Agency
Second Mortgage Minnesota Housing I 1%, 30 year term,
Finance Agency[ interest &
payments deferred
Ifor 30 years
t
Third Mortgage Family Housing Fund 1%, 30 year term,
interest &
payments deferred
for 30 years
Fourth Mortgage City of New Hope grant after
satisfactory
completion
Equity Investor National Equity Fund Purchase of low
income .housing
tax credits
EXHIBIT A
CERTIFICATE OF COMPLETION
WHEREAS, the Property described on Exhibit 1 attached hereto
and made a part hereof (the "PropertY") is subject to the
provisions of a certain Redevelopment Agreement (the "Agreement")
dated 1998 by and between Project for Pride
;~ Living, irc. (the "Developer") and the Economic Development
Authority in and for the City of New Hope, a Minnesota Municipal
Corporation (the "EDA"); and
WHEREAS, the Developer has fully and duly performed ail of the
covenants and conditions of the Developer under the Agreement with
respect to the completion of the Project (as defined in the
Agreement);
NOW, THEREFORE, it is hereby certified that ail requirements
of the Developer under the Agreement with respect to the completion
of the Project have been completed and duly and fully performed,
and this instrument is to be conclusive evidence of the
satisfactory termination of the covenants and conditions of the
Agreement as they relate to the completion of the Project. All
other covenants and conditions of the Agreement shall remain in
effect and are not terminated hereby.
Dated th~s day of ...... , 1998.
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF NEW HOPE
By
Its President
By
Its Executive' Director
STATE OF MINNESOTA )
) ss
COUNTY OF )
The foregoing instrument was acknowledged before me this
day of 1998, by , President, and
Executive Director, of the Economic
Development Authority ~n and for the City of New Hope, Minnesota,
a Municipal Corporation on behalf of the Corporation.
Notary Public
Th~s [nstrument Was Drafted By:
OORSEY & WHZTNEY LLP (RJS)
Pillsbury Center South
220 South Sixth Street
M~nneapolis, Minnesota 55402
d: .~p51\cn~\,=PL.f:n
,,,111 I EDA
,)b,)REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
EDA
Community Development
~9-28- 8 . Item No.
Byf(irk McDonald By:.:,//
/,
DISCUSSION REGARDING RELEASE Old'SECURITY ON MORTGAGE FOR PROPERTY LOCATED
AT 7709 42ND AVENUE NORTH (IMPROVEMENT PROJECT NO. 467)
As the EDA is aware, there have been on-going discussions with the owner of the Autohaus property at
7709 42nd Avenue North over the past years regarding incompleted site improvements connected to the
1991 Development Contract. The outstanding issues are identified in the attached correspondence. The
City has held a security on the mortgage of the property as a final guarantee that all improvements
would be completed. The owner of the property now desires to make additional improvements to the
building and site. In order to receive financing for the improvements, he is requesting a release on the
mortgage from the City. He has indicated to city staff that some of the outstanding issues would be
completed with the new phase of improvements, however, the property owner is not willing to provide
any substitute financial guarantee. The property owner is also requesting that several of the outstanding
issues, including replacement landscaping and the retaining wall location, be accepted in their present
condition. While staff is supportive of additional improvements to the property, the City's right to have
certain improvements completed needs to be secured.
The City Attorney and Community Development Director me{ with the property owner on September 25
and reviewed the outstanding issues on the property and discussed the proposed new improvements.
The property owner has indicated that he wants to resolve the outstanding issues with the City. Staff
indicated that only the EDA has the authority to release the current security on the mortgage.
Staff requests to discuss these issues with the EDA and requests that the EDA provide direction to staff
on how to proceed. Additional information will be provided at the EDA meeting.
MOTION BY ~ SECOND BY
'
4401Xylon Avenue North City Hall: 612-531-5100 City Hall Fax: 612-531-5136
New Hope, Minnesota 55428-4898 Police: 612.531.5170 Police Fax: 612-531.5174
Public Works: 612-533-4823 Public Works Fax: 612.533-7650
TDD: 612-531.5109 Fire Dep't. Fax: 612.531-5175
September 17, 1998
Mr. Thomas Boettcher
Autohaus of Minneapolis, inc.
7709 42"d Avenue North
New Hope, MN 55427
Subject: Site Improvements
Dear Mr. Boettcher:
Per our telephone conversation and referencing the attached documents, I believe that the outstanding
site improvements that need to be addressed on your property include the following:
1. Landscaping
2. Screening of trash enclosures
3. Parking lot striping including ADA requirements
4. Sign post on northeast corner of property
5. Retaining wall location
You need to either explain to the City why the improvements have not been completed per the original
site plan or complete them. Perhaps the City would consider releasing the security on the mortgage so
you could proceed with your next phase of proposed improvements if you would post another form of
guarantee that these improvements would be completed.
Also, you need to submit plans to the City for approval before you proceed with your proposed 1998
building and site improvements. Once the plans are submitted, the City will determine whether they can
be approved administratively or if they require City Council approval.
The City does want to cooperate with you as you proceed to make improvements to your property.
Please contact me at 531-5119 if you have any questions.
Sincerely,
Kirk McDonald
Director of Community Development
Enclosures: 1998 Building Official Memo
1995 EDA Request for Action
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Doug Sandstad, Building Official
Scoff Domfeld, General Inspector
Improvement Project File No. 467 ..
Family Styled City ~~ For Family Living
MEMO
To: Steve Sondrall
Kirk McDonald
From: Doug Sandstad
Date: Nov. 5, 1997
Re: "Autohaus" Site Condition
I reviewed the extent of Site Plan compliance during my visit to the 7701
42"d Ave. No. property on Oct. 31, 1997. I compared the City Council-
approved 2-11-91 Site Plan for the CUP approval to the present condition. I
have attached copies of two exhibits: · "1991 Auto Sales CUP"
· "1997 Layout" [ Overlay ]
Clearly, many of the site improvements have not been made, including the
south 200', despite many .Orders from city staff. Option #1 is to require
completion.
It did NOT appear that any auto sales/leasing is occurmg on the property,
now. Our "1991 CUP" plan was driven by auto sales/leasing. The
improvements specified on the plan were intended to soften the variety of
typical "used car lot" nuisance characteristics and comply with the new code
spaWned by this petitioner [4.124(5)]. Ootion #2 is to change the land use
to "Major Auto Repair", now a Permitted Use in the I-1 and I-2 districts. A
code change is needed to create a new CUP for Major Auto Repair on large
lots in the B-3 zone. This use is defined in 4.022 (5) and a significant
hazard, with weldi~_ng, psinting and more. With no sales, traffic, lighting.
auto display, signage and landscaping issues are greatly reduced.
"1991 CUF' Plan Problems / Omissions, today, include:
· 30 tre. es required- 24 exist [12 dead]
· 223 shrubs required- 108 in place & alive
· "High quality Bomsnite surface required for auto display- not installed.
· 3 parking lot pylon hghts missing
3 big dumpsters outside-unscreened
· 1 truck/rail steel container box stored at SE corner of lot.
Auto parts stored outside on asphalt
· Old signs & junlc d,,mped behind steel container box
· parking lot striping does not meet code
· No Handicapped parking per state statute
· Old steel sign post standing at NE corner
· New sign installed on front wall.not on Comp. Sign plan
· Front landscaped strip is 5 feet wide- 10 feet required
cc: Exhibits -.
File
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
11-27-95
Kirk McDonald Item No.
By: Management Assistant By:. 4
UPDATE ON AUTOHAUS SITE IMPROVEMENTS, 7709 42ND AVENUE NORTH
(IMPROVEMENT PROJECT NO. 467)
Thomas Boettcher from Autohaus will be present at the November 27th EDA meeting to present an
update on the Autohaus site improvements. The EDA has previously requested an update on the
progress of the improvements, particularly since Universal Color, Lnc. has vacated the front portion of
the Autohaus building. Boettcher will be presenting a revised site plan to the EDA.
On April 4, 1991, Autohaus, Inc. and the City of New Hope executed a Development Contract
regarding specific improvements to be made to the Autohaus property, such as the installation of
concrete curb, landscaping improvements, storm drainage improvements, paving and lighting
improvements and the demolition of the Animal Hospital building. The contract called for the
improvements to be made to the property by April 14, 1992. Autohans subsequently requested several
time extensions to complete the improvements. The most current agreement states that all improvements
will be completed by October 31, 1994. While some of the work has recently been completed (such
as striping of the lo0, several items have not yet been completed (landscaping on east and west sides
of property, trash enclosure, etc.). Also, in Suly, 1994, Autohaus submitted a request to the EDA to
allow'the retaining wall they constrnc~ five feet from the property line to remain in place. The EDA
declined to consider the request until an update on all outstanding issues on the plan was presented.
In 1991,:the EDA'also made a low interest loan to AuWhaus in the amount of $187,500 to assist with
the acquisition of the former Animal Hospital site and for development improvements to the site. The
loan was paid back in full thi.~ past summer, several years in advance of when it was due.
MOTION I~ , SECOND BY
Review: Administration: Finance:
Request for Action 2 ~ 11-27-95
Issues that the EDA may want to discuss with Boettcher include the following:
1. Interior use of space vacated by Color Lab (to be converted into showroom and service
department).
2. Retaining wall issue.
3. Signage (pylon and wall signs).
4. Landscaping.
5. Layout of front auto display area and elevated auto display turntables. -.
As of the writing of this request, staff have not received f'malized site plans. When final revised plans
are received, staff will have more detailed comments.
ADOENDUM TO CITY OF NEW HOPE
DEVELOPMENT CONTRACT
1. PartieS. The parties to this Addendum are the City of New
Hope (hereafter City), Autoha.us of. Minneapolis, Inc.
(hereafter Autohaus) and Thomas W. Boettcher, individually
(hereafter Boettcher).
2. Property. The rea] property (hereafter Property) to which the
thfs Addendum applies is owned in fee by 8oettcher and is
located in Henneptn County, Minnesota, legally described as:
(See attached Exhibit A)
3. Purpose. This Addendum shall modify the that certain
Development Contract dated April 4, 1991 (hereafter Contract)
entered into by the parties. Autohaua and 8oettcher
acknowledge and agree that they are in breach of the
performance conditions of the Contract and in consideration
for the City's agreement not to t,~aadtataly pursue
remedies under the terms o~ the COntract 8oettcher and
Autohaua have agreed to enter into thta Addendum.
4. Unperformed Conditions. Specifically, Autohau$ and aoettcher
acknowledge and agree that they have failed to perform all the
requirements of paragraphe 2.A) through ]) and 3 of the
Contract. With respect to. the work required by those
provisions the parttee hereto agree' that Autohaul and
Boattcher will perform the work aa folYOwa:
a. ) The tnetallatton of concrete curb from the ,~et southerly
wall of the butldtne northward to County Road No. $
be completed by October 31, 1993. The rMtnder ~f the
COMPLETED curbing ~l ~ on the ~ti ~1~ ih111 be tnit~lled by
OGtober 31, 19~4, except that curbing around the
pert~ter of the unpaved ~dy e~p ~d re~at~ Itorage
Irli Ihlllbe Instilled tf ~d when sltd ~dy~ho~ and
r~tr itorlel ir~ ti paved ii let forth below. AI'I
4ng aha11 be of a lur~untlble type ii I~oroved by
City. Autohaul Ind~ittG~her lhlll au~tt I dtlerw
of latd' Gurbtne for' approval te the Ctty prter
b.) 'All p~anttnel iho~' on the elte pl~ north of the
butld~ne"l ~it southerly w~11 ~hlll be Instilled by
NOT October 31, 1993. All other ~linttngi Ih~ on the
COMPLETED ptan Ihill be tnltelled by October 31, 1994.
1
c.) The' six-foot opaque security fence around the ~erimeter
of the body shop and collision repair storage area shall
COMPLETED be installed by October 31, 1994. The existing fencing
.shall remain in Dlace until the new security fence is
instal led.
d.) The installation of lighting shown on the site plan shall
be completed by October 31, 1993. However, the parties
COMPLETED agree t'hat the existing lighting for the collision reDair
area as of the date of this Addendum is adequate end no
further lighting is required notwithstanding the lighting
required by the site plan.
e.) All planted areas completed in 1993 will be sprinkled by
PARTIALLY October 31, 1993. All planted areas completed in 1994
COMPLETE will be sprinkled by October 31, 1994.
f.) The installation of the outdoor trash enclosures will be
NOT DONE completed by October 31, 1994.
g.) The front display area will bm completed by October 31,
PAVING COMPLETED 1993. However, the parttea aQre® that the front display
STRIPING NEEDS TO BE area can be paved with concrete and bituminous.
DONE--NO HANDICAPPED
SPACES h.) The islands in the transport lane area will be installed
NOT DONE by October 31, 1994.
t.) Eroaton control maaeurea of grading and seeding in a form
and manner aPl)roved by the City Engineer ahall be
coml)lat®d by October 31, 1993. The eroaion control
maaauraa shall al)l)ly to all unl)&ved araae.
J. ) The City agreaa to waive indefinitely the requirement in
the Contract that Autohaue and moettch®r l)ave'tha body
ahol) and rea)air atorage area. However, if' Autohaua and
moettcher elect to l)ava the body ahOl) and rel)&ir storage
area at .Gee l)otnt tn the future, then Autoh&ua and
Boettcher w~11 be required to tnata11, l)rior to said
l)avtng, the l)ul)ltc atom water drainage tmorovements
required by I)aragr&l)h $ of the Contract. Ancl, l)rior to
tnlt&11tnl maid atorm water drainage tml)rovements,
JlJll[__~ll&ue and-the City muet agree on the
~m~' I)lyment of the coat of maid atorm water drainage
ITEMS THAT NEED TO BE COMPLETED: LANDSCAPING
SPRI..LING
TRAS. E.CLOSURE
STRIPING
TRANSPORT LANES
5. Nonmerqer. The parties agree that the terms of the Contract
and t.his Addendum shall survive the satisfaction, re]ease or
termination of the April 4, 1991 Mortgage, Security Agreement
and Fixture Financing Statement given by Boettcher, and
Autohaus and Boettcher shall be' required to perform all work
set forth above even if said Mortgage, Security Agreement and
Fixture Financing Statement is satisfied, released, or
terminated. _
6. Security. The subdivision bond or other security required of
Autohaus and Boettcher to ensure their performance under the
Contract shall be reduced to $1,000.00.
7. Effect of Addendum. The parties agree that this Addendum
shall not change the other provisions of the Contract, which
shall remain in full force and effect. This Addendum shall be
construed as supplemental to and not inconsistent with the
Contract. The parties further agree that a breach of this
Addendum shall also constitute a breach of the April 4, 1991
Mortgage, Security Agreement and Fixture Financing Statement
given by Boettcher to secure the April &, 1991 Mortgage Note
executed by aoettcher. Autohaua further agrees that the
assignment of the Certificate of Deposit gtven as financial
security to insure plrformance of the Contract shall lubJect
to reduction aI set forth ~-above, also extend to secure
performance under this Addendum.
Oat ed: By
Dlted: ~ By
Olted: ~
4.~01 X~,ton Avenue North TelePhone: 6 ~2.531.5100 C,ty Hall Fax
New Hope, Mtnnesota 55428.4898 TDD Line; 612.531-5109 Police Fax..
PuOilc Wor~$ Fax.
July 27, 1994
Mr. Thomas Boettcher
Autohaus of Minneapolis, Inc.
7709 42nd Avenue North
New Hope, MN 55427
Subject: REQUEST TO AH.OW FRONT RETAINING WALL TO REMAIN IN PLACE
FIVE FEET FROM PROPERTY LINE
Dear Mr. Boettcher: ..
At the Suly 25th New Hope Economic Development Authority meeting, the City Manager
presented your letter to the EDA requesting to allow the existln_~ retaining wall to remain in
place five feet from the property line, due to the fact that Universal Colour Lab, Inc. will be
extending their lease and the plan for the front display area will be delayed. Th~ EDA declined
to grant the request until an utxlat~ regazding ali outstanding issues on the plan is presented.
The F. DA indicated that they do not want to amend the existing Development Agreement for '
only the maining wall issue if otl~r changes also need to be made. As you are aware, all
landscaping and sim ' .,,,5~o~ (including tho~ in tl~ r~ar of tl~ building) at~ to be
completed by this fall. ~ EDA wan~ an tqxlate mi all mustntldin~ issues befor~ it will
consider your request m allow tl~ mainin~ wall to mmin in pla:e, and the City cannot proceed
with any curb ' .,ml~ovenmls on your property in e. onjum-'tioa with tl~ 42nd Avenue
t have ewa~ a oozy of tbs most rg.~ly r~ised asrmnem between th~ city ~nd Autohaus.
Please revig, w ~ ~ and respond in writing regarding tl~ outstanding improvements to
be complemd. Also, ~ I~t ~ or myseff know if you will I~ abl~ to attmM nn ulgomia_~'
Council/EDA training m answer tt~ EDA's 'questions so that w~ ran tnov~ forward on thi.,
F~ily Styled C~'~~ Fe~ Rmtily Uvb~
//
' //
Page 2
Sincerely,
Daniel $. Donahue
City Manage~
Kirk McDonald
Management AssistantJ
Community Development Coordinator
Enclosure: Development Agreement
cc: Dan Donahu~, City Manager
Steve SondraH, City A~or~y
Mark Hanson, City Engineer
Doug Sandsr~l, Buildi~ Official .-
Improvement Project #467
COUNTY ROAD NO. 9
.......... ! · .,1 " ~.i ~'
Memorandum
TO: Kirk McDonald j~/×
FROM: Doug Sandstad (]~ "
DATE: September 17, 1998
RE: Autohaus Completion / Financial Security - 7701 42nd Ave. No.
I have reviewed your letter, of today, to Tom Boettcher regarding site
improvements. You have asked for an estimate of the cost for the five
stipulated improvements.
Landscaping; $ 6,500
Trash Enclosure w/gate; 1,500
Lot striping and signs; 1,000
Remove old sign post-NE; 500
Move retaining wall; 2,000
TOTAL: $11,500
cc: file