Loading...
072604 EDA OFFICIAL FILE COPY .-. CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North July 26, 2004 ' President Don Collier Commissioner Doug Andersen Commissioner Sharon Cassen Commissioner Mary Gwin-Lenth Commissioner Steve Sommer 1. Call to order 2. Roll call 3. Approval of regular meeting minutes of June 28, 2004 4. Resolution approving purchase agreement and relocation benefits for 5537 Sumter Avenue North (improvement project no. 764) 5. Resolution approving purchase agreement and relocation benefits for 5540 Winnetka Avenue North (improvement project no. 762) 6. Resolution authorizing execution and delivery of a contract for private redevelopment by and between the New HoPe Economic Development Authority and Foundation Land Development, LLC for the redevelopment of the former Frank's Nursery property at 5620 Winnetka (improvement project no. 733) 7. Resolution authorizing approval of a term sheet between the New Hope Economic Development Authority and Ryland Homes for Phase III of the Winnetka Green Redevelopment (improvement project no. 751) 8. Discussion regarding concept development proposal by Ryland Homes for city- owned property north of C.P. Railroad; motion authorizing appraisal of property 9. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes June 28, 2004 Regular Meeting City Hall CALL TO ORDER President Collier called the meeting of the Economic Development Authority to order at 8:43 p.m. ROLL CALL Present: Don Collier, President Doug Andersen, Commissioner Sharon Cassen, Commissioner Mary Gwin-Lenttz, Commissioner Steve Sommer, Commissioner APPROVE MINUTES Motion was made by Commissioner Andersen, seconded by Commissioner Sommer, to approve the Regular Meeting Minutes of June 14, 2004. All present voted in favor. Motion carried. IMP. PROJECT 723 President Colher introduced for discussion Item 4, Resolution authorizing mortgage Item 4 to New Hope Alano Group, Inc. for property at 7550 Bass Lake Road (A.C. Carlson building) (improvement project no. 723). Mr. Steve Sondrall, City Attorney, stated the resolution will approve a loan to the New Hope Alano Group, Inc. to facilitate the purchase of the former AC Carlson building at 7550 Bass Lake Road. He explained that the reason the item is before the EDA is because the EDA acquired the Alano property as part of the Ryland Homes development resulting in their displacement. He stated AC Carlson is constructing a new facility and Alano is interested in purchasing the Bass Lake Road property. He reviewed the financial aspects of the $175,000 loan. Mr. Sondrall reported on the benefit to the city by providing the loan. He stated the loan period is proposed to be amortized at 30 years with a balloon payment after 15 years. The interest rate would be the same rate as the city pays with a 4% penalty for late payments. Mr. Fred Boyes, New Hope Alano, was recognized. He reported that originally Alano requested a loan for $150,000. The need for the additional funding is due to parking lot costs and building remodeling costs. He agreed to the 30-year schedule with a balloon payment after 15 years. He reported on Alano's intent to refinance after 15 years. Mr. Donahue stated the interest is based on the rate the city would pay for the bonds. Commissioner Sommer commended AC Carlson for selling the property for approximately $100,000 less than its value. Mr. Donahue inquired whether Alano would be willing to periodically put a city- related item on their sign. Mr. Boyes expressed uncertainty as to whether the sign will remain or not. He stated the membership will decide soon. EDA RESOLUTION Commissioner Cassen introduced the following resolution and moved its adoption 04-23 "RESOLUTION AUTHORIZING MORTGAGE TO NEW HOPE ALANO Item4 GROUP, INC. FOR PROPERTY AT 7550 BASS LAKE ROAD (A.C. EDA Meeting June 28, 2004 Page 1 CARLSON'BUILDING) (IMPROVEMENT PROJECT NO. 723)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Gwin- Lenth, and upon vote being taken thereon, the following voted in favor thereof: Collier, Andersen, Cassen, Gwin-Lenth, Sommer, and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. IMP. PROJECT 772 President Collier introduced for discussion Item 5, Resolution approving purchase Item 5 agreement for 9101 36th Avenue North (improvement project no. 772). Mr. Donahue, City Manager, stated the purchase agreement has been prepared per the EDA's direction on May 24. It was noted that the bank may have another offer pending. He stated the city's objective is to eliminate a blighted property and that can be accomplished regardless of whether the property is purchased by the city or another party. City Attorney Sondrall recommended the EDA adopt the resolution approving the purchase agreement in the event the transaction with the other buyer does not materialize. Discussion ensued regarding the property's condition. Mr. Sondrall stated the city will be aggressive on getting the property code compliant. He stated it may be necessary to demolish the structure. RESOLUTION 04-24 Commissioner Gwin-Lenth introduced the following resolution and moved its Item 5 adoption "RESOLUTION APPROVING PURCHASE AGREEMENT FOR 9101 36TM AVENUE NORTH (IMPROVEMENT PROJECT NO. 772)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Sommer, and upon vote being taken thereon, the following voted in favor thereof: Collier, Andersen, Cassen, Gwin-Lenth, Sommer, and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted~ signed by the president which was attested to by the executive director. 5620 WINNETKA President Collier introduced Item 6, Resolution authorizing execution and delivery Item 6 of a contract for private redevelopment by and between the New Hope Economic Development Authority and Foundation Land Development, LLC for the redevelopment of the former Frank's Nursery property at 5620 Winnetka Avenue North (improvement project no. 733). President Collier reported that this item is being removed from the agenda at the developer's request. It is likely to be presented to the EDA at the July meeting. ADJOURNMENT Motion was made by Commissioner Andersen, seconded by Commissioner Sommer, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 9:16 p.m. Re.~.~_.~ectfully submitted, Valerie Leone City Clerk EDA Meeting Page 2 Jtme 28, 2004 Originating Department Approved for Agenda Agenda Section Community Development 01 July 26, 2004 EDA Item No. By: Kirk McDonald By: RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS, 5537 SUMTER AVENUE NORTH (IMPROVEMENT PROJECT #764) REQUESTED ACTION Staff recommends EDA approval of a resolution prepared by the City Attorney approving the purchase of property located at 5537 Sumter Avenue North for the negotiated price of $180,000, which the owner is willing to accept. Although the owners are entitled to a differential payment, it is the City's understanding that the owners are intending to rent rather than ~urchase a replacement property, therefore, they will receive a rental supplement of $4,830.00 instead of a differential payment of $14,900.00. The City Attorney is currently coordinating with the property owner and it is anticipated that the purchase agreement will be executed in the near future. Please refer to the attached correspondence from the City Attorney for additional information. POLICY/PAST PRACTICE City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties within the city. The City Council has been addressing the residential portion of this goal through the city's many housing activities, including acquiring property in areas designated for redevelopment in the Comprehensive Plan. BACKGROUND At the November 3, 2003, Council Work Session, the Council directed staff to complete appraisals, relocation estimates and to present offers to residents located in the east Winnetka redevelopment area. On January 26, 2004, the EDA authorized condemnation of the remaining properties. 'The city had an appraisal completed on this property for $170,000.00, and the owners have an appraisal for $188,000.00. Based upon the circumstances outlined above and in the correspondence from the City Attorney, staff is recommending a ~urchase price of $180,000.00. Staff recommends approval of the resolution. FUNDING The subject property is located in an area where TIF funds can be expended. TIF funds would be used for property acquisition, relocation and associated holding costs. During the 2003 State Legislative Special Session, the city's TIF special legislation was passed. In December 2003, the district was approved by the City Council. MOTION BY ~/~.Z~/~,C SECOND BY "~~~z I I:RFA/CornmDev/O-5537Sumter.de.c Request for Action Page 2 ATTACHMENTS · Resolution · Purchase agreement and exhibits · City Attorney correspondence · City appraisal excerpts (full appraisal available for review in Dept. of Comm. Dev.) · Location map CITY OF NEW HOPE EDA RESOLUTION NO. 04 - ~ RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 5537 Sumter Avenue North BE IT RESOLVED, by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, New Hope City staff have been in contact with Kim Alan Dejno, personal representative for the Estate of Betty Lorraine Dejno ("Owner"), Owner of certain real estate known as 5537 Sumter Avenue North (the "Property"); and WHEREAS, appraisers hired by the New Hope EDA valued the Property at $170,000.00 as of May 28, 2004; and WHEREAS, appraisers hired by the Owner valued the Property at $188,000.00, and WHEREAS, the Owner is willing to sell the Property to the New Hope EDA for the sum of $180,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, the New Hope EDA hereby approves the Purchase Agreement with the understanding relocation assistance benefits will be paid to the Owner as required by both State and Federal law; and WHEREAS, City staff have employed the service of Evergreen Land Services Company to provide the required relocation assistance; and WHEREAS, Evergreen Land Services Company has prepared a relocation analysis (attached as Exhibits B and C) for the Owner herein and has determined the estimated maximum relocation benefits payable to Owner based on a $180,000.00 acquisition price of the subject property is as follows: 1. differential payment - $14,900.00, " 2. moving expenses - $1,800.00, 3. closing costs - $4,000.00 (if applicable upon purchase of replacement property), 4. rent supplement in lieu of differential payment- $4,830.00 (over 42 months); and WHEREAS, it is in the best interest of the New Hope EDA to purchase the Property from the Owners for the sum of $180,000.00, with other terms and conditions as set forth in the Purchase Agreement attached as Exhibit A and to pay the required relocation assistance benefits as determined by Evergreen Land Services Company in the analysis attached as Exhibit B and C. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference; 2. That the purchase of the Property by the New Hope EDA from the estate of Betty Lorraine Dejno for the sum of $180,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved. 3. The relocation assistance benefits payable to the Owner as determined by Evergreen Land Services Company attached as Exhibits B and C are hereby approved. 4. The President, Executive Director and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the p ,urchase of the Property in accordance with the Purchase Agreement attached hereto as Exhibit A. Dated the 26th day of July, 2004. Don Collier, President Attest: Daniel J. Donahue, Executive Director P:La. ttomey\Cnh Resolutions\99.11304-001-Reso Approv PA-5537 Surmer Avenue-Dejno.doc EXHIBIT A ADDITIONAL TERMS RELATING TO PURCHASE AGREEMENT FOR 5537 SUMTER AVENUE NORTH Buyer acknowledges that it shall be responsible for payment of the State Deed Tax due on the sale of the above property, as well as the cost of securing a title commitment as set forth in the Purchase Agreement. Buyer will also be responsible for all other closing costs, specifically including all recording costs and all costs to seal the water well on the property. Buyer acknowledges that relocation assistance benefits as determined by Evergreen Land Services Company will be paid to the Seller, as required by law. Seller acknowledges and agrees the determination of moving expenses and closing costs by Evergreen Land Services Company shall be binding on both parties. Risk Assessment/Inspection-Lead based Paint. Buyer waives the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards. SELLER: Dated: ,2004. Kim Alan Dejno Personal Representative for the Estate of Betty Lorraine Dejno BUYER: THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Dated: ,2004. By: Don Collier Its: President Dated: ,2004. By: Daniel J. Donahue Its: Executive Director P:L~kttorneyLSAS\l C[iem FilesL2 City ofN~v Hopek99-11304~I~x A lo l)ejno PA.doc 07/20/2004 10:20 FA~ 763 493 5193 JENSEN & SONDRALL, P.A. ~ CNB-CB [~002 \ PRICE DI~FERENT~L PAYMENT ,4u~,4~LYSIS OF COMPARABLE PROPERTIES Prpject Address & ,Name: ~m ~ Dejno, 5~37 Sumter Ave N, New Hope, MN ~428 Pro~ Phce (~e~) ,S,168,0~0.00 ~ ,S179,9~.~ ' S 1~4'~00.~ Ad.ss 5537 S~r Ave 5337 ~g~ A~ 60~8 Y~ Ave N N Ci~ , ~eW Hope N~w Hope New H~: .... Date ~m~cfi°n N/A N/A No. of Roo~ 6 7 6 No. of B~o~ 3 ' ~~~ , ,, ~ , " ~ ,,, ] ,, , No. of Ba~ I 2 2 Total ~a (Sq. Ft.~ 1,160 ~ i~20 '1212" F~Flac~s N~e No~ Nnne ~er Fim~h~ , S~ac~ ' G~age ~e A~ One A~ T~ A~ ~t ~i~ I00x165 75xi35 / 10,125 75 x 120/9,~0 ' 16,5008~fl / .37A Sq~ :23A SqR / .20 A Neighbor°od ~ Sub. sa E E Schooh y y Y Public . y y Y Y y y P~e of y y ~lo~nt . Y Ade~ 2. Yes 2. Y~ 2. ~d~q~ 2. Yes 2. Yes 2. Yes factored m m ~ 07/20/2004 10:20 FA][ 763 493 5193 JENSEN & SONDRALL, P.A. ~ CN~-CH ~003 ~~Y ~ PA~ D~A~ON Name: ~no - ~m~ ~o~ Ad~s~: O~ER ~ SU.E~ ~ COMPI COMP2 ~ COMP3 ~D~S 5943 J~ Ay, ~ ~ '216 65' Av,~ CI~ C~s.I, ~ ~ Bro°kl~ Park, ~ DO~ GAS S60.~ S70.~0 -- ELE~n ~C N/A N/A - WATER N/A N~A SEWE~OA~AOE N/A N/A BASE ~TAL { I ~5.00 S { ,370.00 D: S. & S. y~ y~s DENSI~ N/A N/A SQUA~ ~. t,200 1,150 NO. OF ROOMS S~ Six ~ .' BATHS One One BAS~/STO~GE Y~ Yes -~ONDITION p~r E . ~) E ~OcAT~ON N/A , ~) - n E - B E - B SCHOOLS ye~ yus C~RCH y~s yes Mon~}y ~come M~, Mon~ly ~nt 42 x Mo, ~nt of C~p. 42 x Act, ~nt ~ ~ ln~m~ M~, ~l~nt ' ~PROV~ B~ MIN.'NESOTA ST.A~N~DARD RESIDENTI.-LL PURCHASE AGREEMENT BEFORE YOU USE OR SIGN THIS CON'rlL~CT. YOU SHOULD CONSULT \VITtt A LAWYER DETERaMINE TI-L4.T THIS CONTIL~CT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. 1. PARTIES. Th~s Purchase A~eemem ~s made on Jul~ .2004. by and between the Estate of Bett~ Lorrmne De. mo. relaung to property a: 5537 Sumter Avenue Nortl~'. New Hope. Minnesota 55425. SELLER. anc the Economic Development Authont3' tn and for the City of Ne~v Hope. a public body corporate and pohnc undc: ~, t~ ' the laws of the State of Minnesota. of440I Xylon Avenue North. New Hope. Minnesota.. -*-$. BUYER. 2, OFFER/ACCEPTANCE. Buyer offers to purchase and Seller a~ees to sell real property legally described as: Commencing at a point tn the West line of Lot 39. Auditor's Subdn'~s~on No. 226. Hennepm Count>. Minnesota 100 feet South of the Northwest comer thereof: thence East parallel with North hne of sa~d Lot 39. a distance o:' 200 feet: thence South parallel with the West hne of said Lot 39. a distance of 100 feet: thence West parallel with the North hne of said Lot 39. a d~stance of 200 feet to the West line thereof: thence North along said West hne distance of 100 feet to the pmnt of begmmng except the West 10 feet of the North 80 feet of the above described tract. Subiect to and together with an easement for public road purposes over the Eas~ 30 fee~ of the West 200 feet of the ~onh 200 feet of said Lot 39 extending from the South line of the tract therein conveyed to ~he South hne Bass Lake Road as shown ~n Deed Document No. 257342. Files Reg,strar &Titles Count3.' of Hennepm. Sta~e of Minnesota. Being registered land as is evidenced by Certificate of Title No. 605552. Property Tax ldentificauon Number or Tax Parcel Number 05-118-21-33-0022; located at 5537 Sumter Avenue North. City. of New Hope. Count2,.' of Hennepin. State of Minnesota. 55428. 3. ACCEPTANCE DEADLINE. The acceptance date of this Purchase Agreement is the date it is dehvered b3 the last parry signing to the other party. ;l-blt; 3fl~:' I~; ;:grcl:.".:.~:. "-~ ................. ~ ........ "" ~ ~' ...... * ~: ' ~ ':' 4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN SALE. The following ~tems of personal property and fixtures owned by Seller and currently located on the real property are included in this sale: garden bulbs, plants, shrubs, trees, storm windows and inserts, storm doors, screens, awnmgs, window shades, blinds. curtain-traverse-drapery rods, attached lighting fixtures with bulbs, plumbing fixtures, sump pumps, water heaters, heating systems, heanng stoves, fireplace inserts, fireplace doors and screens, built-in humidifiers, bmh- tn air conditioning units, built-in electronic air filters, automanc garage door openers with controls, televts,on antennas, water softeners, built-in dishwashers, garbage disposals, built-in trash compactors, built-in ovens and cooking stoves, hood-fans, intercoms, installed carpeting, work benches, secun .fy systems, and also the following property: 5. PRICE AND TERlVlS. The price for the real and personal property, included in this sale is One Hundred Eighty Thousand and 00/t00 Dollars ($180.000.00) which Buyer shall pay as follows: Earnest money orS0.00 ~y e'TASH. CHE.r?.tL NOTE payable tc.: ~Seller, to be deposited and held by Seller (and may be commingled with Seller's other funds} pending closing. ~ Seller's lawyer, to be deposited and held in the lawyer's trust account pending closing. __ Seller's broker, to be deposited or held by t~roker according to the requirements of Minnesota Statutes, ~ Other ; .... : ..... e-a.;~ it: ~'~-~' ...... ~ ...... ~.~...~a and $180.000.00 cash, on 2004. the Date of 6. DEED/MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a General Warranty Deed, joined in by spouse, if any, conveying marketable title of record, subject to: A. Building and zoning laws, ordinances, state and federal regulations; 1 B. Resmctions relating to use or improvement of the real property without effective forfeiture provisions: C. Reservation of any mineral rights by the State of Minnesota: D. Utihg' and drainage easements which do not interfere with ex,sting improvements: E. Excepuons to lille which constitute encumbrances, restrictions, or easemems winch ha~ e been d~sciosed to Buyer and accepted by Buyer in this Purchase Agreemen:: None. ?. REAL ESTATE TAXES AND SPECI.4.L ASSESSMENTS. Real estate taxes due and payable in and the 5'ear of closing shall be prorated benveen Seller and Buyer on a calendar 3'ear basis lo the actual Date of Closing. unless otherxvlSe provided in this Purchase Agreement. !: :a-. :.:.:lc:;:c:~'. - ;~: .a.-~, :.:\z:. z:~, :;~:: Er-~-'!.:l 2.2. 2. 2'.; ;:Ill ..,'.r- . .. 4 ......... , .-i. ,t; .~.. ........... ;~: II,,~' ...~ :;ialc~..a',':i.,I ..........~ ..... ; .... ....:a;.~'.. due' 2.:I.: ...... ,..._..,.,.1-:.- ::: :i;c :..';:i~ .~ -'"": .... ". .... ;' bc .....~'l~t~.' .1" ....... ......... ~,..~4 C72551 l~.~all~l;' ....... ~-'..11 .... ...... 1~..i i ~7%.*' I(~ ..~.~ .......... ............. I...- ..... .-- _c . I~ ..~,,, ,... ," l~ ...... ,... ..... c .z L...'., -., ......... .... .,,,. ~, 2.:. ~:-:'.'d:".~ !l:.lrri.;;.;l;;-'~.! I;: ...... ni. ,..~. ..... ~ ............... ,.,- ............... ~ .... :;la,,-'-'.; ';'~ I~L'.;.'...i ....... i ...... t--. ..... al_.. -,:.;,-'I~, ~.ca::'. ..... c .;,.,.. :.!l,.:!i ~;-'.'? ~'";;":;::~'/ BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF CLOSING ~ EE!.!.ER SH-~-LL P.~-Y O-~; !;,'.TE ~.-~F CL(}E!~C all installments of special assessments certified Ibr payment with the real estate taxes due and payable in the year of closing ........................................ ~ SELLER SHALL PAY ON DATE OF CLOSING all other special assessments levied as of the date of this Purchase Agreement. ~ ........ :;:x~' . ................ ~.ES!'l!E / SELLER SHALL PROVIDE FOR PAY~IENT OF special assessments pending as of the date of this Purchase Agreement for improvements that have been ordered by thc CiLy Council or other governmental assessing authorities. (Seller's provision for payment shall be by payment ~nlo escrow of 1-1/2 times the estimated amount of the assessments.) As of the dale of this Purchase AgreemenL Seller represents that Seller has not received a Not~ce of Heanng of a new public tmprovement pr~lecl from an}' governmental assessing authority, the costs of which project may be assessed agamsl the real property. If a special assessment becomes pending after the date of this Purchase Agreement and before the Date of ~losmg, Buyer may, at Buyer's option: A. Assume payment of the pending special assessment without adjustment to the purchase price of the real property; or B. Require Seller to pay the pending special assessment (or escrow for payment of same as provided above) and Buyer shall pay a commensurate increase in the purchase price of the real property, which mereasc shall be the same as the estimated amount of the assessment: or C. Declare this Purchase Agreement void by notice to Seller. and earnest money shall be refunded to Buyer. /5'::-i/:~..-..::c9~ ~U':'EP. £!.x.~.LL .i.c.i!'!,!E/SELLER SI-1ALL PAY ON DATE OF CLOSING any de£erred real estate taxes (including "Green Acres" taxes under Minn. Stat. 273.111 ) or special assessments paymen! of which is required as a result of the closing of this sale. Buyer shall pay real estate taxes due and payable.in the year following closing and thereafter and an}' unpaid special assessments payable therewith and thereafter, the paymentfuture r~al°festateWhiCh~axesiS nOtor of°therwlSefumre specialPr°videdassessments.herein' Seller makes no representation concerning the amount of 8. DAMAGES TO REAL PROPERTY. If the real property, is substantially damaged prior to closing, this Purchase Agfa'resent shall terminate and the em'nest money shall be refunded to Buver. If the real property ts damaged materially but tess than substanUally prior to closing. Buyer may rescind t]~i$ Purchase Agreement by notice to Seller within 21 days after Seller notifies Buyer of such damage, during which 21 -day period Buyer mab inspect the real properly, and in the event of such rescission, the earnest money shall be refunded to Buyer. 9. SELLER'S BOUNDARY LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the real property. Seller warrants thai there is a right of access to the real properly, from a public right of way. Seller warrants that there has been no labor or material furnished to the real property for which payment has not been made. Seller warrants that there 2 are no present violat:ons 0£ an)' resmcnons relanng to the use or improvement o£ the real proper~.~. These warranues shall survive the dehvery of the Deed or Conwact for Deed. 10. CONDITION OF PROPERTY. A. Seller warrants that ali appliances, fixtures, heann~ and air condmonm~ eqmpmem, fireplaces uncludm'.-' mechanisms, tiampers, flues, and doors), wmn~. and plumbing used and located on the real prope,"~. ' be tn wot 'tang order on the Date of Closm'.-'. Seller shall remove all debris, and ali personal property no: included m this saie fi.om the real propertT.' before possess:on date, Seller has no knowied.ae of any Dutc?, elm d~sease, oak wil~. or other d:sease of any trees on the real property. B. Seller knows of no hazardous substances or petroleum products having been placed, stored, or release,". from or on the real property by an)' person m ',aolation of any lax~. nor of any un~er,,,.n'otmd storage tank~ having been located on the reai property at an)' t:me. except as l-ol~ows: None. C. Seller's warranues and representations contained m this paragraph 10 shall sur¥~ve the dehvery of thc Deed~r (c::~:-ac: :or l~'c.c~i. Any act:on based upon these warranlles and representations must bc commenced within two years after the date on which the Buyer closed on the purchase of the real property. D. Buyer shall have the right to have thspecttons of the property conducted prwr to closing Unless requlred by 'local ordinances or lending regular;ohs, Seller does not plan to have the property respected. E. Statutory Disclosure. Pursuant to Minnesota Statutes sections $13.$2 - 513.60 {ef£ect:vc .}anuar).' t. 2003), Seller must provide a written d~sclosure [see (1~ below], or Buyer must have received an inspection report [see (2) below], or Buyer and Seller ma,',' wa:ve the ~aatlen d:sclosure reqmrements [see (3) below]. Minnesota Statutes Section 513.57, Subd. 2. LIABILITY. A seller who fails to make a d~sclosure as reqmred ~eetwns 513.$2 to 513.60 and was aware of the condition of the real property, is hable to the prospect:ve buyer. A person m)ured by a vioianon of this secnon may bring a civil ac::on and recover damages and receive other equitable relief as deterrmned by the court. An action under'this subdivision must be commenced with:n two years after the date on which the prospective buyer closed the purchase or transfer of the real properly [Selecl only oste q£ these three:j [] (1) Seller's Disclosure. Seller has provided a written disclosure to Buyer. A copy of Seller's disclosure is attached. Seller shall correct tn writing any maccurac:es in the disclosure as soon as reasonably possible before closing. Minnesota Statutes Section 513.55. GENERAL DISCLOSURE tLEQUIP, EMENTS, Subdiviswn 1. CONTEN'I'S. (al Before signing an agreement to sell or transfer residential real property, the seller shall make a disclosure to the prospective buyer. The disclosure must include all material facts pertaining to adverse physical conditions m the property of which the seller is aware that could adversely and significantly aft~ct: (1) an urdmary buyer's use and enjoyment of the property; or, (2) any intended use of the properly of which the seller is aware. (b) The disclosure must be made in good faith and based upon the best of the seller's knowledtle at the t:me of the disclosure. Minnesota Statutes Section 513.58. AMENDMENT TO DISCLOSURE. Subdivision 1, NOTICE. A seller must notify the prospective buyer m writing as soon as reasonably possible, but m any event before closing, if the seller learns that the seller's disclosure required by secnon 513.$5 was maccura:e. Subdivision 2. FAILURE TO NOTIFY: LIABILITY. A seller who fails to notify the prospecuve buyer of any amendments to the imnal disclosure required under subdivision I is liable to the prospect:ye buyer a~ provided tn section ~13.$7. Ul(2) Inspection Report. Buyer has received an inspection report by a qualified third-party. If a copy of the inspectwn report is provided to Seller, Seller shall disclose to Buyer material facts known to Seller that contradict any information in the inspection report. Minnesota Statutes Section ~13.56 Subd. 3. INSPECTIONS. (a) Except as provided m paragraph {b), a seller is not required to disclose information relating to the physical condition of the real property if a written report that discloses the information has been prepared by a qualified third party and provided to the prospccuve buyer. For purposes of this paragraph. "qualified th/rd parW" means a federal, state, or local governmenlal agency, or a~y person whom the seller, or prospective buyer, reasonably believes has the expertise necessary to meet the industry standards of practice for the type of mspectwn or investigation that has been conducted by the third party in order to prepare thc written report. (b) A seller shall disclose to the prospective buyer material facts known by the seller that contradict any information included m a written report under paragraph (a) if a copy of the report is provided to thc seller. 7~ (3) WaiverofDisclosure- Minnesota Statutes Secnon 513.60. WAIVER. The ,~nnen d~sclosu~e re~utred under secnons 513--~2 to may be waived if the seller and the proSpecnve buyer, agree m ~mung. %¥mver of the d~sciosure reqmred unde' secnons 513.52 to 513.60 does not x~ve. iu'mt, or a[,nd~e an)' obhganon Ior seller d~sciosme created ~y any omc: ia~ Seller and Buyer waive the written disclosure required under sections ~13.52 ~o 513.60. ECONOMIC DEVELOPMENT AUTItO~Y IN AND FOR THE C~Y OF NEW HOPE SELLER: BY: K~m Alan Dejno Don Colher. Pres~oen~ Personal Representauve of Estate of Be~' Lo~a~ne Dejno BY: Darnel J. Donahue. Execunvc D~rector Oth~ th~ the wa~anues and represenmuons ~de in this para~ph 10. the prope~~ ~s being sold "AS no express ~ ~mphed represenmuons or wa~ues by Seller as to phys~caI condmons, quahty of cons~cuov.. wor~anship, or fimess for any pamcular pu~ose. (This pam~aph ~s not intended to waive or hm~ an~ p~x4sions of Mi~. Stat.. Chapter 327A.) ' ' 11. DISCLOS~ OF NOTICES. Seller has not received ~y nouce ~om any govemmenta~ authomy as v~olation of any law, ordinance or regulation affecting the real prope~'. If the real prope~' ~s subjec~ restncnve coven~ts. Seller has not received any nonce from any person as io a breach of lhe covenams. has not received any nonce from any governmental authon~' concerning any emmem domain, condemnauon. s~cial taxing dismct, or rezoning proceedings. 12. TRUTH-IN-HOUSING Buyer ae~owledges receipt of the T~th-in-Housmg Disclosure Report or other mspecuon re~ if required by the m~ic~paliw in which the real prope~ ts located. 13. POSSESSION. Seller shall dehver possession of the prope~ not later than the Date of Closing. b~, sublect to any access a~eemem entered into by the t, aHies. Seller ac~ee~ to pay all interest, '" '~ ";~ L'i'"': V ....... and all c~rges for ciW' water, cl~' sewer, elecmci~', and natural gas thmueh and :ncludm~ gS'al~ bot:'.'cc:; :Sc ;;a7,;c:. a:, c~' the Date of Closing or thc date Seller xacates thc }~tmc~:x l~cr thc acccs~ a~wccment. whichever ts later. *SEE ~DITION~ TE~IS 14. E~ATION OF TITLE. ~" dem~nz:ra:c '~"' c~.,~-,..,~ ......... : ..... ~ ...... ~ ..... ~,: ............. 15. ~E CO~IONS A~ ~MED~S. Seller shall have 120 days from receipt of Buyer's ~tten title objec~o~ to ~kc title ~rkcmble. Upon ~ccipt of Buy~'s title objections, Seller shall, within ten (I0) business ~ys, nofi~ Buyer of Seller's intention to ~ke title ~rkcmble within thc 120 day ~nod. Liens or encumb~ces f~ liquidated amo~ts which can be released by pa~cnt or escrow from proceeds of closing shall not delay ~e closing. Cure of thc defects by Seller shall be r~sonable, diligent, and prompt. Pending co~ectlon of title, all pa~ ~quircd h~cin and the closing shall be pos~oncd. A. lfno~c¢ is ~v~ and Seller ~kcs title ~rkcmblc, ~cn u~n presentation to Buyer and proposed lender of docm~on cs~blishing ~at ~tle has be~ ~dc ~mblc, and if not objected to in the same time and ~er as the original title objections, ~e closing s~ll rake place within ten (10 } business days or on the scheduled closing date, whichever is later. B. If notice is Wen and Seller proceeds in good faith to ~e title ~kcable but the 120 day period expires wi~out title being ~de ~kemble, Buy~ may dccl~c ~is Purchase A~c~t void by not~ce to SelI~, nci~ p~ shall be liable for ~gcs hcrc~dcr to thc o~cr, and earnest money shah be ~ded to Buyer. 4 C. IfSelter does not rove notice of mtent~on to make title marketable, or ifnouce ~s given but thc 120 da~ period expires x~-iti~out title bein~ made marketable due to Seller's failure to proceed m good faith. Buyer may seek. as permitted by law. one or more of the folloX~nng: (1) Proceed to closing without waiver or merger tn the Deed of the olEiect~ons to title and without waive' of any remedies, and may: (al Seek damages, costs, and reasonable la%'yer's fees fi.om Seller as !~erm:tted by law {dama,.oc~ under this subparagraph {a} shall be hm:ted to the cost of cunn,,,- o~ecnons to ::tic. and consequential damages are excluded}: or (b) Undertake proceedings to correct the object:ohS to title: (2) Rescission of th~s Purchase A~eement by not, ce as provided hereto, tn xvhzch case thc Purcha,~c Agreemem shall be null and void and all earnest money paid shall be refunded to Buyer: (3'1 Damages from Seller together with costs and reasonable la~.-/er's i'ees, as perm:tied by la~x: (4) Specific performance within six months after such right of action arises. D. If title is marketable, or is made marketable as provided herein, and Buyer defaulls m any of thc agreements herein, Seller may elect either of the following options, as permitted by law: (I) Cancel this contract as provided by statute and retain all payments made hereunder as hquidatcd damages. The parties acknowledge their intention that any note given pursuant to th~s contract ns a down payment note, and may be presented for payment notwithstanding cancellation: (2) Seek specific performance within six months after such right of act:on arises, including costs and reasonable la~3'er's fees. as permitted by law. E. If title is marketable, or is made marketable as provided herein, and Seller defaults tn an)' of the agreements hereto. Buyer ma)'. as permitted by law: (1) Seek damages from Seller including costs and reasonable lawyer's fees: (2) Seek specific performance within six months after such right of action arises. 16. NOTICES. All notices required herein shall be in writing and delivered personally or mailed to the address as shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 18. MINNESOTA LAW. This conwact shall be governed by the laws of the State of Minnesota. 19. WELL DISCLOSURE. [Check one of the following] ~ Seller certifies that Seller does not know of any wells on the real property. Z Wells on the real property, are disclosed by Seller on the attached Well D~sciosure Form. 20. SEWAOE TREATMENT SYSTEM DISCLOSURE. [Check either A or B] A. [] Seller certifies that sewage generated at the property goes to a facility permitted by the Minnesota POllution Control Agency (for example, a city or munic)pal sewer system). B. ~ Seller certifies that sewage generated at the property does not go to a facility permitted by the Minnesota Pollution Control Agency and Seller's Disclosure of Individual Sewage Treatment System )s attached (attach form). [C~ecl either C or D] C. 12 Seller does not know if there is an abandoned individual sewage system on thc property. D. ~Seller knows that there [strilce oneJ: at. are no abandoned individual sewage treatment systems on the I property. If Seller discloses the existence of an abandoned individual sewage treatment system on the propert3.', then Minnesota law reqmres that the location of the system be d~sclosed ~o Buyer w~th a ma7 [Attacl: Selier's D~sciosure qf Indtvidual Sewage Treatment Svstent w~tit ma? completed.; 21. LEAD PA/NT DISCLOSURE. [Check one o.£the.£oliowmgl _- Seller represents that the dweli~ng was conswacted on the real properD.' in 197,', or later - Seller represents that the dwelhng was construed on the real pro~ert3.' belbre ] q"~,. III' such housing :.. located on the rea] propert)., attached and made a part of th~s Purchase Ag'reement ts "LEAI) ADDENDUM FOR HOUSING CONSTRUCTED BEFOILE 1978". } 23. SELLER'S AFFIDAXrIT. At closing. Seller shall supplement the warranues and representat,ons m Purchase Agreement by executing and dehvenng a Minnesota Uniform Conveyancmg Biank {Form 110-M. 1 ]'7. M. or 118-M} Affidavit of Seller. 24. CLOSING. Closm~ shall be at the~:,c!~-c ~;-c..~ ..... ~ ........... t ....... - :i:!e i~:.::rz~. ~::' ;:: -.;~:::c ~:!:c: .......... ........ ~'~' : ......... [State ottler location]: New Hope ClD' Hall. ,.M01 Xvlon Avenue North. New ttopc. Minnesota 55428. At closing. Seller and Buyer shah disclose their Social Securaty Numbers or Federal '~ax Identification Numbers for the purposes of completing state and federal tax forms. 25. ADDITIONAL TERMS: *Buyer shall obtain, at Buyer's expense, a Commitment for an Owner's Pohev of Title insurance on a current ALTA form issued by an insurer licensed to wr~te title insurance m Minnesota. Buyer shall be responsible for payment of those costs necessary to prepare such Commitment. mcludtne but not limited to abstracting fees. name search fees. serv;ce charges, etc. Buyer shall pa)' the premmm for the'O~vner's Policy of Title insurance. Buyer shall have ten {10) business days after receipt of the Commitment for insurance to provide Se]ler with a copy of the Commitment and written oblections. Buyer shall be deemed to have waived any title objections not made within the ten {10) day period above, except that this shall not operate as a waiver of Seller's covenam to dehver a statutory Warrant), Deed. unless a Warran~x, Deed ~s not specified above. If Buyer obtains title Insurance. Buyer is not wmving the right to obtain a good'and marketable titte of record from Seller. 26. ADDENDA. Attached are 1 addenda which are made a part of this Purchase Agreemem. 27. TIME IS OF THE ESSENCE. Time is of the essence for all orovisions of tins Purchase Agreement. 28. MULTIPLE ORIGINALS. Seller and Buyer have signed 3 originals of this Purchase Agreement. THIS IS A LEGALLY BINDING CONTRACT. BEFORE SIGN1NG. CONSTULT A LAWYEi~. Minnesota law permits licensed real estate brokers and sales agents to prepare purchase agreements. No . recommendation or representation may be made by any real estate broker or sales agent as to the legal sufficiency. I the legal effect, or the tax consequences ofth~s contract. These are questions for your la%?er. SELLER: BUYER: I agree to sell the property for the price and terms I agree to purchase the propert), lbr the price and and conditions set forth above, terms and conditions set forth above. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Date: July ,2004. Date: July .2004. Klm Alan Dejno By: Personal Representative of the Estate of Betty Don Collier, President Lorraine Dejno SSN: Date: July ~, 2004. By: Daniel J. Donahue, Executive Director ! This Purchase Agreement was prepared by: i JENSEN & SONDRALL. P.A. i 8525 Ed~nbrook Crossing. State 201 I Brooklxm Park. MN 55443 i (763} 424-8811 Others who will assist Seller or Buyer with this transaction: Laawer fgr Buyer: Steven A. Sondrall. #103391 8525 Ed~nbrook Crossing. Sune 201 Brooklyn Park. Minnesota 55428 (763) 424-8811 Listme Agent and Broker for th~s transacnon are: N/A Seihng Agent and Broker lbr th~ rransacnon are: N/A Buyer's Title Insurer: Old Republic National Title Insurance Company 400 Second Avenue South Minneapolis. Minnesota 55401 [1994: Rev. 1996: Rex'. 1997: Rex'. 2002} 7 JENSEN & SONDRALL, P.A. Attorneys At Law 8525 EDINBROOK CROSSING. STE. 201 BROOKLYN PARK. MINNESOTA 55443-1968 TELEPHONE (763) 424-8811 · TELEFAX (763) 493-5193 e-mail law~j ensen-sondrall.com DOUGLAS J. DEBNERz GORDON L. JENSEN~ July 20, 2004 GLEN n. NORTON STEVEN A. SONDRALL VIA E-MAII~ TO kmcdonald(~ci.new-hope.mn.us STACY A. WOODS AND BY REGULAR U.S. MAIL or COUNSEL Kirk McDonald LORENS Q. BRYNESTAD Community Development Director City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Re: 5537 Sumter Avenue/Dejno ResoLution Approving Purchase Agreement Our File No.: 99.11304 Dear Kirk: Please find enclosed for consideration at the July 26, 2004 EDA meeting a proposed Resolution Approving Purchase Agreement and Relocation Benefits(5537 Sumter Avenue North). Also attached to the resolution as exhibits A, B and C are the purchase agreement and relocation benefit analysis prepared by Evergreen Land Services. We have a $170,000.00 appraisal for this property. The owners have had the property appraised at $188,000.00. As we discussed, staff is recommending we pay $180,000.00 which the owner is willing to accept. Per the relocation benefits analysis, the owner is entitled to a "differential payment" of $14,900.00 since it appears a replacement property could not be purchased for less than $194,900.00.(see exhibit B). However, it is my understanding the owners are intending to rent rather than purchase a replacement property. In this case, they will receive a rental supplement of $4,830.00.(see exhibit C). Given the fact the owners are not going to utilize their "differential payment" and that they have an appraisal indicating a market value of $188,000.00 it seems appropriate to increase our purchase price to $180,000.00 despite the serious dilapidated condition of the property. It is my understanding this is staffs' recommendation as well. I am faxing you exhibits B and C since they are not on my word processor. Contact me if you have any questions or comments regarding the attached resolution or purchase agreement. Very truly yours, Steven A. Sondrall, City Attorney, JENSEN & SONDRALL, P.A. Enclosure(s) ~Real Property Law Specialist Certified By The Minnesota State CC'- Valerie Leone Bar Association :Admitted in Iowa P:'~AttomeyXSAS\l Client Filesk2 City of New Hope\99-11304~ltr K McDonald re resolution approvng pa.doc De, no 40107364 ~ro ~d~n~ Qu~ty Appra~a~s for Bu~. Len~em DATA SUMMARY Client: City of New Hope/Ken Doresky 4401 Xyion Avenue N. New Hope, MN 55428-4898 Borrower: NIA Address: 5537 Sumter Avenue New Hope, MN 55428 Value: $170,000 Date: May 28, 2004 Appraiser: Gregory V. Callahan, Cert Resl Real Prop Client File: Dejno Forsythe File: 40107364 APPtL~ISALS, LLC 222 EAST LITTLE CANADA ROAD, ST. PAUL, MINNESOTA 55117 (612) 486-9550 / FAX: (612) 486-9732 Deln¢ q,my m. erip... UNIFORM RESIDENTIAL APPRAISAL REPORT F.. ~= 401073~ ~ ~ ~ 5537 Suer Avenue ~ N~ Ho~ s~e M~ ~ ~ 5~2~ ~ ~ S~ A~cn~ In~n ~. HenneDm ,~s~. ~118213300~ ~,.~ 2~3 ~E ~S 1.638 14 ~,~s None ~ NIA ~ ~no. Be~ ~ ~ ~~ N/A ~ D2~1 ~s]~ 512~2~5.0Z ~S N/A ~e~ NIA ~$~l~~mm~ None ~t C~ of New Ho~/Ken Doresky ~ ~01 Xylon Aven~ N.. N~ Ho~. MN 5~28~89~ ~ Gr~o~ V C~nan C~ R~I Real Pm~ ~ ~2 L~ie Canaaa R~d. L~e Canaaa MN 55117 ~~ ~ ~t~ ~l~ ~ ~tT~: 350 ~ 65~ 15% ~0NotAppi~bie ~t~ ~, Coun~ Rd. 81 to ~ ea~ and H~y 169 to t~e ~st, Th~s ,s an ~bl~s~ area ' Fa~ ~al afle~ ~ ~e~bi~ of ~ ~ms ~ ~ ~h~ (~x~ to ~nt a~ ~m~s. e~v~nt sta~lt~. Sumter Avenue is a quint mmOent&al ~t. ~ ~Ke RoaO. a t~l ~ffic a~e~ is ~m 1/8 m,e ano offem ac~ to ~ooolno. ~s. employment ~ntem. fr~ys, an0 ~matton Pm~ values ~ve ~n mcrea~ng ~man0 tot the ama ;s o~. Im~ve~nts 0o ~nfo~ to t~ ~ndmq homes T~ ~fqh~m~ nas no ap~mnt aove~ factors aff~ng t~ ~'s ma~e~bil~. S~ a~a~ for ~dJtfo~l ~mmen~ For me sublets ML~ ma~etin~ d~ ~362. MLS S~h~iCS Jnd~Mte ~at 87.40% of all listings are aveM~e ~ii~ [~m of 31 days. 5el~ am ~ewln~ 99 24% of ~e ~kmq p~. Fmancm~ readiiv availab~ ~m a vane~ of soumes, ~Jch ~s both ~tential buye~ aha sellers ~: :~:~,.--~W~ I~ FU~ (If i~} - - ~s me al~W~u~ m mn~l ot ~ ~ome ~MS' A~O~llmn (HOA)~ ~ ~n eights a~ ~e=eatmnal ta~ws' NOt Appli~ble. ~ ~ ~p,ux:_~o=uu ~q. Pt. [~o~n~) .... ~t ~ y. ~ ~ ~ Abv. Av~./16TS00SF ~,~c zoning a~ .~ ~mn ~-~ ~ln~le ramlly Kesi~ntial ~ ~-~- ~, ~ ~ ~ ~ ~ Aoequate .... ~ ~ ~ ~ ~.e~ 1~ ~ ~ ' ~'-~- ~ ........ I ~ Sn~ Covered ~ ~ mo mt. In~ S~t B~ummous ~ { [ ] ~ ~ AsnnaR ~ , ~ ~ ~ * ' ~ FE~-~ ~7~r"~ . ,[ ~ auove avera e i~ $ne Val~ ratio. / iMI ear.nm have ~n consiaemd to estimate ~ mamet vaJue see and land to GE~ ~C~ ~.~ ~ F~TI~ I~E~m I I~U~Zi~ ~.~s~ 1.5 ~ ~ Side } ~ No ~ ~ 80% ~(S~) 1.5; ~&~. ~1 ~N/A N/A ~ ~ Conc ~,m.) 5L ~ Sto~s ~' N/A [ ~ N/A NIA · No N/A , 1 I~ ~ ~TING K~N E~IP. i A~IC i ~NITIES ~ ~R STAGE F~ ~ ~' T~ FA ~ ~ F~,)~ T~ NIA P~ ~ ~Sm ~ An~ I Car ~ F~ NIA ~G ~ ~ ~ Yes ~ NIA ~ No F~ ~ ~ ~-~n ~ NIA ~ N/A ~ ~ ~ Ad~ ~t~ ~ (~ IS. but nol ,roiled to. h~ar~us wastes, toxic ~bltlfl~l. etc.) ~elent in lbo fm~rovoments, on tho lite. or m the ~mmdiate ~n~ of the ~ub~ P~~ v_-:*_-~,,, s.c,**. UNIFORM RESIDENTIAL APPRAISAL REPORT ~ ~0 40107~ ~A~ V~ .............. = $ 5~.~ ~m~ms on Cosz A=em~cn ~sucn ~s. ~urce ~ 1.308 ~.Fr ~s = S 0 I 780 ~. Fr e S.~ = 0 ~ T~e s~ value as va~m is : t T~t ~nom~c I~e of 100 '~ 2~ ~F~.~S~ = 0 ~ ~ IF~; ~, Est ~E~.~ ~ =S 0 =S '. 0 IN~GA~ V~ BY CO~ ~OACH = S 55.000 5537 Sumter Avenue 19025 ~ffi Aven~ N. 14230 Nevaaa Avenue N ~ 5924 En~pn Avenue ~ N~ Hope I New Ho~ I N~ Ho~ ~ N~ Ho~ 3 Miles f Appmx. 1.5 M~te ~ ~p~x . 5 M~le ~ ~ ~s N/A ~ s 179.000 ~ ~ 159.900. ~.~ ~s 0.00 mis 117.76 ~ ~S 1~.60 m ~s 158 17 ~ ~ } Ins~on I MLS/Coun~ I MLSICoun~ I MLS/Coun~ v~ ~ ~Coun~ Info. 110 Days on ~met I39 Da~ on ~met 15 Days on Mame~ ~~ ~A IConvl0 ~ ; IConv~ ~ JConv/0 P~ ~ I NIA ~ By Seller ~ By Sel~r I By Seller ~ of~ i N/A J Clsd 7~2 ; 20.000 ~ Clsd 4103 10.000 i CI~ 21~ ~ I SuDuman ~ Simi~r Neigh.. I Similar Neigh. ~ S~mllar Ne~g~ ~e 100x165 ~ 85~93~1. : . ~ 95x130/Inf. 5,000 J 75x125/Inf ' 10.000 v~ Resi~en~l ~ Similar V~ :, Similar V~ ~ Simda~ ' 1.5 S~ql. : t Ram~erlSup -10000 Similar Qual~ : ~ Similar Qual~ : ~ S~m~lar Quah~ 55 Yin. Yearn ; 65 Yearn 143 ~ , Cond. ~. Cond. Cond. : -10.000 ~ Sup. Co~ - 10.000 ~nt 7: 3; 1.00~ 8: 4: 1.00: , 5; 3: 1.00: ; 6 3. 1.00~ 5.100 ~.,;;~ r.~ FulFEql. mi. ; Ga~lEq; 100 SF Fin. Unfinish~ ~ Similar ~1~ ~ ~s FA CIA, : -1,500 JGas FA ClAir : -1,500 ( Gas FA CIA, ~Unkn~ . ~Unkn~ IUnkn~ Car Garage ~3 Car ~mge -10.000 ~1 Car ~m~ 1 Car P~. P~m. ~. 1 None 2.000 ~Deck ' ~ 1.000 ~ck ~. e~c. N/A ~ W~ Stove ~ NIA : N/A NIA : NIA ~'~ ~ 29% ~ ~% I~: 23.~% ~: -3% ~ 3% cG~";* ~ S~ c~, (~ ~ ~b~ m~'s ~mt~a~ to ~ ne~h~, etc. ) R~m ,~unt adlustments are incluUeUm ; are maQe ITEM I ~ I COMPARABLE NO 3 Date, Prim .~d D.ta ~ NIA 0 Sales Grid I uee Comps Sales Grid 1 See Comp Sa~es Gncl N/A ] MLSICounty R~c,:,~G~ t MLS/County Recoras INDICATE~ VALUE BY ~ COMPariSON Ap~I~O~i, CH $ data, The :~.~.~ Grei:l<)(y~/. C~!!_~h_ an, Celt ~esl Real P~p ,~gne~n [::::}[~ [:~[~ Not Date r~;~,,; June 21~ 2004 ' ~ a~mc~pn~=~y~nv I I sim, c~.~'.~-~, # 4002346 .s~e MN Slm~# ~ ~l/.ikf.~. ~13 RAGE2oF~Or~te~e ~ J Fomythe Appraisals, LLC ADDENDUM ADDITIONAL FEATURES: in acld~on, the subject has: an attached one car garage, porch and central apr COMMEHTS ON SALES COMPARISON: Comparables two and three have smaller lots and are inferior in s~te value Because they closed over a year ago, comparables one and two have time ad)ustments reflect,nd typical appre~ation in the suD)ect area. Because it is a one level rambler Oesign comparable three ~s suDerior in appeal. Th~s was also verified during a dnve by inspection. As noted dunng an interior and extenor inspection of the subject and a drive inspectmon of the comparables, the sublect ~s infenor in condition to all comparable sales. Comparable three has an additional 1/2 bath and is superior in above grade room value. TRANSMITTAL LETTER: The subject was originally inspected (drive by inspection only) on December 12. 2003. The subject was re-insDected (interior and exterior) on May 28, 2004. The "revved" estimated market value as of May 28, 2004 (new effective date), is $170,000. The property was appraised by Gregory V. Callahan, Licence Number 4002346. Certified Residential Real Property Appraiser. A certif~.-:~:l residential real property appraiser may apDraise residential property or agncultural property without regarcl to transection value or complexity. This appraisal report is a 'Summary Appraisal Report". It conforms to the 1997 Uniform Standards of Professional Appraisal Practice. No responsibility has been assumed for matters which are legal in nature, nor has any ol:)~nion on them been rendered, other than assuming marketable title. Lmns ancl encumbrances, if any, have been disregarcled and the properly was appraised as though flee of indebtedness. Please feel free to call us if you have a question. ADDITIONAL COMMENTS: 1. The purpose of the appraisal is to estimate the market value of the subject property for litigation purposes. 2. The legal description of the subject property is: Auditor's subd no 228 Lot 39 BIk S 80 ft of the E 190 ff of W 200 ff of Lot 39 and S 20 ft of N 200 ft of W 200 ff of Lot 39 can be found on page 1 of the 1004 form. 3. The reasonable marketing period for the subject property is under 90 days. past4' According36 months to the county and the MLS system, the subject propert~ has not been transferred in the 5. The subject property was inspected on May 28, 2004, the report was prepared dunng May and June of 2004, the effective date of the appraisal is May 28, 2004. 6. The subject is an existing structure. This appraisal is made "as is." 7. Personal property was not inclutlecl in the appraised value. ADDENDUM Pmpef~ A~s: 5537 6~r 8. We have considered all three approaches to value. The income approach was not utilrze(3 oue to lack of reliable rental data of single family homes m this nelghbomood, The cost approach was considered but not consiclerecl applicable, therefore ~t was not mcluOed 9. The sub~ect is a single family residential property. Revenues. expenses, and/or vacancies do not apply. 10. Current and future employment or compensation is not contingent upon the reponmg of a predetermined value or direction tn value that favors the cause of the chent, the amount of the value estimate, the attainment of a stipulated result or the occurrence of a subsecluent event 11. This appraisal report was cornpleted m conformity with the Uniform Standards of Professional Appraisal Practice. 12. If the photos included in this appraisal are digital/electronic images, they have not been enlarged. enhanced, or altered in any way. 13, If electronic/digital signatures are used, it has been ruled acceptable appraisal practice by USPAP 14. The appraiser certified that if this appraisal included an electronic/digital signature it ts malntmned and controlled by the appraiser completing the report. GC -~11~111 ! '~H AVE N 5532 5531 55TH AVE N - , 54'57 5436 54,37 5500 5444 5437 5436 5437 5451 54.30 5431 5446 5438 ~ 5434 54~ t 54.27 54.26 54.27 5440 54~28 5429 5430 5429 ; 5434. 54.26 54.27 .... 7606 I 54.25 5421 Z 54.20 54.21 5422 ST RAPHAEL DR. 5420 5425 54.20 54.19 54 ! 8 5361 54.07 ~ 5410 "i 54.14 5413 5416 54.13 5414 5,355 5406 5407 _ > 5406 5409 5408 5409 5410 5349 5401 5400 540'1 ~i 5,.~42 15~4 54OO 5401 54OO 5401 54OO 534~ 53305557 5~48 5,.~9 .365337 53245331 53425325 53305331 53 18 5325 5536 5321 5324 5325 / 5312j 5319 5330 5317 53i8 5319 5318 1531 5201 5324. 5313 5312 5313 '~' 53~e 530~ s~s 530? . - REQUEST FOR., ACTION Originating Department Approved for Agenda Agenda Section Community Development i (---~: ~,~ July 26, 2004 EDA Item No. By: Kirk McDonald By:' 5 RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS, 5540 WINNETKA AVENUE NORTH (IMPROVEMENT PROJECT 1/:762) REQUESTED ACTION Staff recommends EDA approval of a resolution prepared by the City Attorney approving the purchase of property located at 5540 Winnetka Avenue North for $225,000, which the owner is willing to accept. In addition, the city will be paying a differential payment of $54,000, because the owner has found an acceptable replacement property at a cost of $279,000.00. The city is also required to pay business relocation costs of $20,000, as the property is zoned commercial and there is a home occupation business on the property. Lastly, the city will pay the routine closing costs. All of these items are outlined in the attached documents from the City Attorney. The City Attorney is currently coordinating with the property owner and it is anticipated that the purchase agreement will be executed in the near future. This is the final property acquisition in the currently approved Winnetka Green project area, except for the 20/20 Eye Care property, which is in the commissioner's hearing process. POLICY/PAST PRACTICE City goal #2 is to emphasize the maintenance and redevelopment of commercial and residential properties within the city. The City Council has been addressing the residential, portion of this goal through the city's many housing activities, including acquiring property in areas designated for redevelopment in the Comprehensive Plan. BACKGROUND At the November 3, 2003, Council Work Session, the Council directed staff to complete appraisals, relocation estimates and to present offers to residents located in the east Winnetka redevelopment area. On January 26, 2004, the EDA authorized condemnation of the remaining properties. The city had an appraisal completed on this property and the value was determined to be $225,000.00. The appraisal was based on a residential zoning use. The property owners found a replacement property for $279,000.00 and are eligible for a $49,900.00 differential payment. In order to complete this transaction, staff is recommending a $4,100.00 ~ncrease in the differential payment to $54,000.00. Staff is recommending the compromise due to the fact that the property is zoned commercial and the fact that the city would need to pay out an additional $1,500.00 to the property owner if they had another appraisal completed. Staff recommends approval of the resolution. FUNDING The subject property is located in an area where TIF funds can be expended. TIF funds would be used for property acquisition, relocation and associated holding costs. During the 2003 State Legislative Special Session, the city's TIF special lel)islation was p, assed. In December 2003, the district was,approved,,b¥ the city Council. MOTION BY SECOND BY Request for Action Page 2 ATTACHMENTS · Resolution · Purchase agreement and exhibits · City Attorney correspondence · City appraisal excerpts (full appraisal available for review in Dept. of Comm. Dev.) · Location map h RFA/CommDev/Q-5540Winnetka.doc CITY OF NEW HOPE EDA RESOLUTION NO. 04 - RESOLUTION APPROVING PURCHASE AGREEMENT AND RELOCATION BENEFITS 5540 Winnetka Avenue North BE IT RESOLVED, by the Economic Development Authority in and for the City of New Hope as follows: WHEREAS, New Hope City staff have been in contact with Richard S. Sucky and Barbara S. Sucky, husband and wife ("Owners"), Owners of certain real estate known as 5540 Winnetka Avenue North (the "Property"); and WHEREAS, appraisers hired by the New Hope EDA valued the Property at $225,000.00 as of February 26, 2004; and WHEREAS, the Owner is willing to sell the Property to the New Hope EDA for the sum of $225,000.00 as set forth in the Purchase Agreement attached hereto as Exhibit A and incorporated herein by reference; and WHEREAS, City staffhave employed the service of Evergreen Land Services Company to provide the required relocation assistance; and WHEREAS, Evergreen Land Services Company has prepared a relocation analysis (attached as Exhibit B) for the Owner herein and has determined the estimated maximum relocation benefits payable to Owner based on a $225,000.00 acquisition price of the subject property is as follows: 1. differential payment - $54,000.00 2. moving expenses - $2,400.00, 3. closing costs - $2,500.00; and WHEREAS, Evergreen Land Services Company has further determined Owners are entitled to an additional Business Relocation Benefit resulting fi.om Owners operation of a "home occupation" car part supply business located at the property equal to the actual cost 'to move and relocate the "home occupation" business to Owners replacement property or a $20,000.00 "in Lieu" relocation payment if Owner so chooses and if Owners can qualify for the "in Lieu" payment under federal and state law governing business relocation payments; and WHEREAS, it is in the best interest of the New Hope EDA to purchase the Property fi.om the Owners for the sum of $225,000.00, with other terms and conditions as set forth in the Purchase Agreement attached as Exhibit A and to pay the required relocation assistance benefits as determined by Evergreen Land Services Company in the analysis attached as Exhibit B. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated herein by reference; 2. That the purchase of the Property by the New Hope EDA from Richard S. Sucky and Barbara S. Sucky, husband and wife, for the sum of $225,000.00, with other terms and conditions as set forth in the Purchase Agreement attached hereto as Exhibit A, is approved. 3. The residential relocation assistance benefits payable to the Owner as determined by Evergreen Land Services Company and indicated on Exhibits B attached are hereby approved and Evergreen is further authorized and directed to determine and pay the appropriate business relocation benefits to relocate Owners "home occupation" car part supply business. This benefit shall be the actual cost to relocate the home occupation car part supply business or a $20,000.00 "in Lieu" payment if Owners can qualify for said payment as determined by Evergreen Land Services Company. 4. The President, Executive Director and New Hope City staff are authorized and directed to sign all appropriate documents, and to take whatever additional actions are necessary or desirable, to complete the purchase of the Property in accordance with the Purchase Agreement attached hereto as Exhibit A. Dated the 26th day of July, 2004. Don Collier, President Attest: Daniel J. Donahue, Executive Director P:~Attomey\Cnh Resolutiom;\99 11302-001--Re~o Approv PA-$540 winnetka Aveoue.doc EXHIBIT A .~HN.'N'ESOTA STANDARD RESIDENTIAL PItRCHASE AGREEMENT BEFORE YOU USE OR SIGN THIS CON'T1La. CT. YOI.' SHOL'LD CONSULT \VITH A LAWYER Tt~ DETER~MI~'E THAT THIS CON'TRACT ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. 1. PARTIES. This Purchase Agreement is made on Jut)' __. 2004. by and berx~ een Richard S. Suck)' ant Barbara S. Sucks.'. husband and wife. of 5540 Winnetka Avenue North. New Ho;~e. Nhnneso~a 5.';428. SELLER. and the Econormc Development AuthonD' m and for the Ctp..' of Nexv Hope. a public bod)~ corporate and pohuc under the laws of the State of Minnesota. of 4401 Xylon Avenue North. New Hope. Minnesota 5542S. BVYER 2. OFFER/ACCEPT.4,NCE. Buyer offers to purchase and Seller agrees to sell real ~ropert)' legal}) described as: That part of the X~,est 10 acres of the SouthnYest Quarter of the South~vest Quarter of Section 5. Township 118. Range 21. Hennepin Count.',', ,~,linnesota. described as follows: Commencing at a point on the ~¥'est line of the said West 10 acres of the Southwest Quarter of the Southwest Quarter. distant 1100 feet North from the Southwest corner thereof: thence North along said X~'est line. 90 feet: thence East parallel with the South line thereof 160 feet: thence South parallel ~%'ith the X~ est line thereof 90 feet: thence West parallel with the South line thereof, 1~0 feet to the point of beginning, now being a part of Lot 38, Auditor's Subdivision Number 220. Hennepin ¢7ount3. Minnesota. except that part which lies Westerly of the following described line: Beginning at a point 40.0 feet East of the West line of said Section and 19.44 feet South of the Sooth line ot said tract, as measured along the West line thereof: thence run Northerly to a point distant 13.0 feet East of the West line of said tract and 40.56 feet North of the South line of said tract, as measured along the West line thereOf; thence run North parallel with the ~¥'est line of said tract to the North line of said tract and there terminating. Property. Tax Identification Number or Tax Parcel Number 05-I 18-21-33-0007; located at 5540 Winnetka Avenue North. City of New Hope, County of Hennepth. State of Minnesota, 55428. 3. ACCEPTANCE DEADLINE. The acceptance date of this Purchase Agreement is the date it is dehvered bx the last party sigmng to the other part~'. ~'~ ..... ':'~ ........... ~ .... chic:::: a~'cc;::c,l ........... ;"~ ~" ...... ~ ,,, ~;. ~t, ..... 4. PERSONAL PROPERTY AND FIXTURES INCLUDED IN SALE. The followth~, items of personal property and fixtures owned by Seller and currently located on the real property are included ~n this sale: garden bulbs, plants, shrubs, trees, storm windows and inserts, storm doors, screens, awnings, window shades, blinds. curtath-traverse-drapery rods, attached lighting fixtures with bulbs, plumbing fixt'ures, sump pumps, water heaters, heating systems, heating stoves, fireplace inserts, fireplace doors and screens, built-in humidifiers, buih- in air conditioning units, built-in electromc air filters, automatic garage door openers with controls, televis~on antennas, water softeners, built-in dishwashers, garbage disposals, built-in trash compactors, buih-m ovens and cooking stoves, hood-fans, thtercoms, installed carpeting, work benches, security systems, and also the £ollowthg property: /C!:cc,(' '~.., ~ ....;;,~.. ~:,n~,.., ...........;,.: ..... ~: . ,:.;. ;~ ...... ¢ ..... .,~g:.cc:;:c::.5; o E-eli.er ~!:'a!! ..... ~, c ~, X 5. PRICE A.ND TERMS. The price for the real and personal propert), included in this sale is Two Hundred Seventy-Nine Thousand and 00/100 Dollars ($279,000.00) which Buyer shall pay as follows: Earnest money orS0.00 b;' c-., cu t~.llrrr~t. ~,t~'rr p .... kl ...... 9 Seller, to be deposited and held by Seller (and may be commingled with Seller's other funds) pending closing. 9 Seller's lawyer, to be deposited and held in the lawyer's trust account pending closing. 9 Seller's broker, to be deposited or held by broker according to the requirements of Mthnesota Statutes, 9 Other Closmg.. a::d '~ ~.-~ ..... ~ ............'-'~ $279,000.00 cash, on .2004, the Date of 6. DEED/MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a General Warranty Deed, joined in by spouse, if any, conveying marketable title of record, subject to: A. Building and zoning laws, ordinances, state and federal regulations; 1 B. Resmctions relating to use or improvement of the real property without effecnve ~'orfe:ture pro~nsmns: C. Reser~,ation o f any mtnera] rights by the State o£ Minnesota: D. Utih~' and drainage easements which do not mter[ere w~th ex,snng :m~rovemems: E. Excepuons to tttie which constitute encumbrances, restrictions, or easements ',vh~ch have been disclosed to Buyer and accepted by Buyer m this Purchase Agreement: None 7. REAL ESTATE TAX~S AND SPECIAL ASSESSIlENTS. Real estate taxes due and payable tn and for the year of closing shall be prorated between Seller and Buyer on a calendar 3'ear t~as:s to the aetuaI Date Closing. unless otherwise provided In this Purchase Agreemem. !:' :a-. :::;;:eme~: - :ct :.a.';: :a~c:: .":c ::~: x'~'v ~. ........... ~ ;~i;.S.~iliCa::C.::. ~"~;~ ~'"~ pa'..' ..- ~.. .............. ... 5 i:; ' *: ....... :,: '-'~'~"' ii:, II. ....... ':. l ........... A c:.i~. ~' ........... : i-".'i ......... c..~ l~:.g;- '" ..... a ...... 1.l~ lit ............... l;~ I~::' ,, .;. c_.:~ ..... ~...t. ;;;:5 to ~'";; ........ t BUYER AND SELLER SHALL PRORATE AS OF THE DATE OF' CLOSING ~' ~:t-, , £H.~-LL P.?.' @.'"; ',.-L'.TE OE (?LO£:~C all installments of special assessments certified for payment with the real estate taxes due and payable in the year of closing. [S::'J/a ....... .... .~ t,-L't't)....~ClL~ ............ · t , · ccr:'~*r~..-... ,~ SELLER SHALL PAY ON DATE OF CLOSING all other specml assessments levied as of the date of this Purchase Agreement. ~....:i ......... r,-~,t-t, ~_-u,,, ,~:~:~.-,,t- SELLER SHALL PROVIDE FOR PAYMENT OF special assessments pending as of the date of this Purchase Agreement for improvements that have been ordered by the Clgz Council or other governmental assessing authorities. (Seller's provision for pa.vment shall be by payment into escrow of 1-1/2 t~mes the estimated amount of the assessments.) As of the date of this Purchase Agreement. Seller represents that Seller has not received a Notice of Heanng of a new public tmprovement project from an,,' governmental assessing authortg,. the costs of which pro3ect may be assessed against the rea} property. If a special assessment becomes pending after the date of this Purchase Agreement and before the Date of Closing. Buyer may, at Buyer' s option: A. Assume payment of the pending special assessment without adjustment to the purchase pr]ce of' the real property: or B. Require Seller to pay the pending special assessment (or escrow for payment of same as provided above } and Buyer shall pay a commensurate increase in the purchase price of the real properb., which increase shall be the same as the estimated amount of the assessment: or C. Declare this Purchase Agreement void by notice to Seller, and earnest money shall be refunded to Buyer. [c.~:~.. :::icl ,-,,,,t,z-,-, cu,, ~ ~:c~-,,~, SELLER , ................................... SHALL PAY ON DATE OF CLOSING any. deferred rea} estate taxes (including "Green Acres" taxes under Minn. Stat. 273.111 ) or special assessments payment of which is required as a result of the closing of this sale. Buyer shall pay real estate taxes due and payable, in the year following closing and thereafter and any unpaid special assessments payable therewith and thereafter, the payment of which is not otherwise provided herein. Seller makes no representation concerning the amount of futare real estate taxes or of future special assessments. 8. DAMAGES TO REAL PROPERTY. If the real property is substantially damaged prior to closing, this Purchase Agreement shall tertmnate and the earnest money shall be refunded to Buyer. If the real property. :s damaged materially but less than substantial]y prior to closing, Buyer may rescind this Purchase Agreement by notice to Seller within 21 days after Seller notifies Buyer of such damage, dunng which 21 -day period Buyer may inspect the real property, and in the event of such rescission, the earnest money shall be refunded to Buyer. 9. SELLER'S BOLTND~y LINE, ACCESS, RESTRICTIONS AND LIEN WARRANTIES. Seller warrants that buildings, if any, are entirely within the boundary lines of the real property. Seller warrants that there is a right of access to the real property from a public right of way. Seller warrants that there has been no labor or material furnished to the real propert3t for which payment has not been made. Seller warrants that there 2 are no present violanons of an.',' resmcnons relanng to the use or ~mprovemenl of the real ~roper~.. These' warramtes shall survwe the dehvery Of the Deed or Contract for Deed. 10. CONDITION OF PROPERTY. A. Seller warrants that all apphances, fixtures, heating and air condmomng equipment, fireplaces ~mciudm~ mechamsms, damvers, flues, and doors,, wrong, and piurnbmg used and located on the real 'property be m woriang orci'er on the Date of Ctosmg. Setter sh-at~ remove ali detent, and ail personai proner~y no~ included m this sate from the real propen3.~ before possession date. Selier has no kmowiedge or' an3 Dutc? elm &sease. oak wilt. or other disease of any trees on the reai propert3. B. Seller knows of no hazardous substances or petroleum products having been placed, stored, or released ~om or on the real property by any person in violauon of an.'.' la~. nor o~' any under~ound storage tank.- haOng been located on the real property at any tame. except as follows: None. C. Seller's warranues and representations contained in this paragraph l0 shall survive the deliver>.' of thc Deed ~;~' '. c~::'.:-'a.c~ '.'~r '.;ce2. Any action based upon these warranties and representations must be commenced xvnhin w'o years after the date on which the Buyer closed on the purchase of the rea] propert?. D. Buyer shah have the right to have inspectmns of the property, conducted prior to closing. Unless required by local ordinances or lending regulations. Seller does not plan to have the property ~nspccted. E. Statutory Disclosure. Pursuant to Minnesota Statutes sections 513.:52 - 513.6(;) (effecuve .)anuar3' 2003). Seller must provide a written disclosure [see (1) below}, or Buyer must have recen'ed an inspection report [see (2) below], or Buyer and Seller may waive the written disclosure requirements [sec (3) below]. Mumesota Statutes Section 513.57. Subd. 2. LIABILITY. A seller who fails to make a disclosure as reqmred b> sections 513.52 to 513.60 and was aware of the condition of the teal property, is liable to the prospective bu.ve~. A person injured by a violation of this section may bring a civil action and recover damages and receive othc~ equitable relief as deterrmned by the court An action under th~s subdivision must be commenced within two years after the date on which the prospecnve buyer closed the purchase or Ixansfer of the real property. [Select only one of these three:J 9 (1) Seller's Disclosure. Seller has provided a v~tten disclosure to Buyer. A copy of Seller's disclosure is attached. Seller shall correct in writing any inaccuracies in the disclosure as soon as reasonably possible before closing. Minnesota Statutes Section 513.55. GENERAL DISCLOSURE REQUIREMENTS. Subdivision 1. CONTENTS. (a) Before signing an agreement to sell or transfer residential real propered, the seller shall make a written disclosure to the prospective buyer. The disclosure must include all material facts pertaining to adverse physical conditions in the property of which the seller is axx~re that could adversely and significantly affect: (1) an ordinary buyer's use and enjoyment of the propervd: or, (2) any intended use ofthe propeYod of which the seller is aware. (b) The disclosure must be made in good faith and based upon the best of the seller's knowledge at the time of the disclosure. Minnesota Statutes Section 513.58. AMENDMENT TO DISCLOSURE. Subdivision 1. NOTICE. A seller must notify the prospective buyer in writing as soon as reasonably possible. in any event before closing, if the seller lean~ that the seller's disclosure reqmred by section 513.55 was ~naccurate. Subdivision 2. FAILURE TO NOTIFY; LIABILITY. A seller who fails to noti~, the prospective buyer of any amendments to the initial disclosure requ~'ed under subdivision I is liable to the prospective buyer as provided In section 513.57. ' 9 (2) Inspection Report. Buyer has received an inspection report by a qualified third-party. Ifa copy of the inspection report is provided to Seller, Seller shall disclose to Buyer material facts known to Se}lee that contradict any information in the inspection report. Minnesota Statutes Section 513.56 Subd. 3. INSPECTIONS. (a) Except as provided in paragraph (b), a seller is not required to disclose information relating to the physical condition of the real property if a written report that discloses the information has been prepared by a qualified third party and provided to the prospective buyer. For purposes of this paragraph. "qualified tined parry" means a federal, state, or local governmental agency, or any person whom the seller, or prospective buyer, reusonablv believes has the expertise necessary tu meet the industry standard.~ of practice for the type of inspection or invcsngatinn that has been conducted by thc third party in order to prepare the Wnnen report. (b} A seller shall disclose to the prospective buyer material facts known by the seller that contradict any information included in a written report under paragraph (a) ifa copy of the report is provided to thc seller. 3 .'- (~ ! Waiver of Disclosure. Mumesota Statutes Seenon 513.60 WAI'v'ER. The ~ten ~sclosure reqmred under sectzons 513.52 to 513.~t' rn~v be waived if the seller end the prospecnve buyer, a~ee m writing ~,~, an'er o£ the dzsclosure reqmred undo: sections 513.52 to 5 t 3.60 does not ,a,'mYe. lmml. or abrid*'e ~mv obi~eanon for seller dlsclos~e crea~ed by anx omc: Seller and Buyer waive the written disclosure required under sections 513.52 ~o 513.60. ECONOMIC DEVELOPMENT ALTHO~Y IN AND FOR THE C~Y OF NEW HOPE SELLER: BY: ~chard S. Suc~ ~n Coliler, Pres~em SELLER: BY: Barbara S. Suck>' D~el J. Donahue. Execum'e D~rector Other th~ the wa~nnes and represenmnons made in this para~aph 10. the property ~s being sold ".~S IS" with no express or implied representations or wa~nties by Seller as to physical eonditmns, quali~' of cons~c~on. wor~anshi~, or fimess for any pamcular pu~ose. (This pan~ph is not m~ended ~o wan'e or hm~t prowslons of Minn. Stat., Chapter 327A.) 11. DISCLOSU~ OF NOTICES. Seller has not recen'ed any nonce ~om any governmental amhonty as violation of any law. ordinance or regulation affecting the real propen)'. If the real prope~' ~s su~ect resmctive covenants. Seller ~s not receWed any nouee from any person as to a breach of the covenants. Seller has not reeeive~ any nonce from any gov~menml authon~ concerning any emmem do~m, condemanon. special mxmg dismeL or rezoning proceedings. 12. TR~-IN-HOUSlNG. Buyer ac~owledges receipt of the Troth-in-Housing Disclosure Report or olher inspection report if required by the m~icipali~ in which the real prope~ is located. 13. POSSESSION. Seller shall deliver possession of ~he prope~ not later than the Date of Closm~t~t ~ubjcc~ Io any access ag~eemenl entered inlo by lhe ~anies. Seller ak~ees lo,,pa,y all interest, '"'~ '"; u ...... ~ ....... ~ and all c~ges for ci~ water, ei~ sewer, elec~ciW, and natural gas t~oueh and mciudme s~ ...... het,.vcc;~ ~hc Farric:. 'a, cf :he Date of Closing or the date Selter ~acnles Ibc Propcn~ per Ibc ~ccess aercemcn:. whichever is later. *SEE ~DITION~ TE~S 14. E~INATION OF TITLE. ~" '; .............. ~, c~,t.~..~ ,;,~.. i:; ..... ~ ..... ~ ...... ~ ..... <: ..... ' ........ ~ ";'~'" 15. ~E CO~IONS A~ ~EDIES. Seller shall have 120 days ~om reempt of Buyer's ~tten titte objeoaons to ~ke title mrkemble. U~n ~ceipt of Buyer's title objections, Seller shall, within ten business ~ys, noti~ Buy~ of Seller's intenti~ to ~ke ~t]e ~rkeable within lhe 120 day period. Liens or encumbrances ~or liquidated amounts which can be released by pa~ent or escrow from proceeds of closing shall not delay the closing. C~e of the defec~ by Seller s~ll be reachable, diligent, and proropt. Pending co.colson of title, all palm required herein and the closing s~ll be ~s~ned. A. Enoti~ is Wen and Seller ~kes title ~rkemble, then upon presmmtion to Buyer and proposed lender of 8~m~ation establishing that title ~s been ma~e ~k~ble, an~ if not objected to in the same time and m~ as Se On.hal title objections, Se closing shall rake place within ten (l 0) business days or on Se sche6ulc8 closing ~te. whichever is later. B. I~ noaee is ~ven ~8 Seller proceeds in good fai$ to ~ke title ~rkeab]e but Se ] 20 day period wi$out atl¢ being made ~rkeable, Buyer ~y dec]~ ~is Purchase A~eement void by not]ce Seller, neiSer pa~ shall be liable for ~mges here~d~ to Se other, ~d earnest money shall be ref~ded to Buyer. 4 C. If Seller does not g~ve notice of tntennon to make title marketable, or if notice is given but the ! 20 cia~ period expires w~thout title being made marketable_due to Selter's failure to proceed m good ta~th. Buve: may seek. as permitted by law. one or more of the following: (1) Proceed to closing, v, qthouI waiver or m~eer~ m the Deed of the ob~ecnons to title and w~thout waive: of any remedies, and may: ia) Seek damages, costs, and reasonable ia~?er's fees from Seller as pertained by law Idamagc5 under th~s subparagraph la~ shall be limited to the cost of curm'.-' ob3ecnons w mic. and consequential damages are excluded,: or (b) Undertake proceedings to correct the ob)ect,ons to title: [2) Rescission of this Purchase Agreement by notice as provided i~erem, m xvh~ch case thc Purchase Agreement shall be null and void and all earnest money prod shall be fei'untied to Buyer: (3) Damages from Seller together with costs and reasonable la~.'yer's fees as permmed by law. (4) Specific performance within six months after such right of action arises. D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of thc agreements herein. Seller may elect either of the following options, as pertained by law: (1) Cancel this contract as provided by statute and retain all payments made hereunder as l,quidated damages. The parties acknowledge their intention that any note given pursuam to this contract down payment note, and may be presented for payment notwithstanding cancellation: (2) Seek specific performance within six months after such right of action arises, including costs and reasonable lawyer's fees. as permitted by law. E. If title is marketable, or is made marketable as provided hereto, and Seller defaults m any of thc agreements herein. Buyer may, as permitted by law: (1) Seek damages from Seller including costs and reasonable lawyer's fees: (2) Seek specific performance within six months after such right of action arises. 16. NOTICES. All nonces required herein shall be in writing and delivered personally or mailed to the address as shown at paragraph 1 above and. if mailed, are effective as of Ibc date of mailing. 18. MINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 19. WELL I)ISCLOSURE. [Cheek one of the following/ 9 Seller certifies that Seller does not know of any wells on the real property. 9 Wells on the real property are disclosed by Seller on the attached Well Disclosure Form. 20. SEWAGE TREATMENT SYSTEM DISCLOSURE. [Cheek either A or B] A. : Seller certifies that sewage generated at the prope~, goes to a facility permitted by the Minnesota Pollution Control Agency (for example, a city or municipal sewer system). B. 9 Seller certifies that sewage generated at the property does not go to a facility pertained by the Minnesota Pollution Control Agency and Seller's Disclosure of Individual Sewage Treatment System attached (attach form). [Check e~ther C or DJ C. 9 Seller does not know if there is an abandoned individual sewage system on the property. 1). :Seller knows that there [strike one]: m~e/,,re no abandoned individual sewage trea~aent systems on thc properly, If Seller discloses the existence of an abandoned individual sewage treatment system on the 5 property, then Minnesota law reqmres that the location of the system be disclosed to Buyer with a may [Attach Seller's Disclosure qf lndtvidual Sewage Treatment System witit map co~nplewd.?; 21. LEAD PALNT DISCLOS[~ILE. [Check one ofthe.£ollowingt 9 Seller represents that the dwelling was constructed on the real property in ] 078 or later. : Seller represents that the dwelhng was construed on the real propert)' before 107,',. (It' such housing located on the real propert)', attached and made a part of this Purchase Agreement is "LE.~ PAINt ADDENDUM FOR HOUSING CONSTRUCTED BEFORE 1975". I 22. WETLANLX~. EHOP. ELAND. AND FLC~O.D PLA!Y-' C'.?"/('E!IS.,~. '~ ~:~c:::i'. ~':,- k::'..:,~c-~.;; FL.~F.)L~ PLA,'N D!E'.'L(.~?.'P..tL \LS.lJ.,\. P,-.:',~! !'rope.":;.' Ft~rn~ N,,..~- ,' l'?;-::.; mci~:.icd..a:, a:; :.'d~:c:x:::::: 23. SELLER'S AFFIDAVIT. At closing. Seller shall supplement the warranties and representat,ons in Purchase Agreement by executing and delivering a Minnesota Uniform Conveyancmg Blank [Form 116-M. 1 M, or 118-MI Affidavit of Seller. 24. CLOSING. Closing shall be at the ~*;~' .... c c...,~..,..,. , ......... u ...... '- '"'~ :r,:.are:. :;:' a: -;~:::c ~::i:c: ........... -= .......... .......... '"" ~ ......... ,,,,~,,. [State other location]: New Hope C~w. Hail, ,1401 Xylon Avenue North, New Hope. Minnesota 55428. At closing. Seller and Buyer shall disclose their Social Secunt)' Numbers or Federal ]'ax Identification Numbers for the purposes of completing state and federal tax forms. 2~. ADDITIONAL TERMS: *Buyer shall obtain, at Buyer's expense, a Commitment for an Owner's Pohev of Title Insurance on a current ALTA form issued by an insurer licensed to write title insurance m Minnesota. Buyer shall be responsible for payment of those costs necessary to prepare such Commitment, mctudmg but not limited to abstracting fees. name search fees. service charges, etc. Buyer shall pay the premmm for the O~amer's Policy of Title Insurance. Buyer shall have ten {10) business days after receipt of the Commitment for Title Insurance to provide Seller with a copy of the Commitment and written objections. Buyer shall be deemed have waived any title objections not made within the ten (10) day period above, except th~! th~s shall not operme as a waiver of Seller's covenant to deliver a statutory Warrant), Deed. unless a Warranty Deed is not speciiied above. If Buyer obtains title insurance. Buyer is not wai',qng the right to obtain a good'and marketable title of record from Seller. 26. ADDENDA. Attached are _4 addenda which are made a pan of this Purchase Agreement. 27. TIME IS OF THE ESSENCE. Time is of the essence for all provisions of this Purchase Agreement. 28. MULTIPLE ORIGINALS. Seller and Buyer have signed 3_ originals of this Purchase Agreement. ITl'liS IS A LEGALLY BINDING CONTRACT BEFORE SIGNING. CONSTULT A LAWYER 1 Minnesota law p¢,,,nts licensed real estate brokers and sales agents to prepare purchase agreementS.' No ! recommendation or representation may be made by any real estate broker or sales agent as to the legal sufficiency, i the legal effect, or the tax consequences of this contract. These are questions for your la~'o,er. SELLER: BUYER: I agree to sell the property, for the price and terms I agree to purchase the propert2,.' for the price and and conditions set forth above, terms and conditions set forth above. Date: July. ,2004. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Richard S. Sucky Date: July 2004. SSN: ' By: Date: July ~, 2004. Don Collier, President Barbara S. Sucky Date: July ,2004. SSN: By: Daniel J. Donahue, Executive Director 6 Th~s Iaurchase Agreement wax prepared bx'. J'Eh'SEN & SONDRALL. P.A. 8525 Edmbrook Crossing. State 201 Broold.vn Park. ~ 55443 (763 i 424-881 I Others who will assist Seller or Buyer with this transaction: Laxwer for Buyer: Steven A. Sondralt. ,~10339t 8525 Ed~nbrook Crossing. State 201 Brooklyn Park. Minnesota 55428 (763t 424-8811 Listin~ A~ent and Broker for this transaction are: N/A Selhne A~ent and Broker for this transaction N/A Buyer's Title Insurer: Old Republic National Title Insurance Company 400 Second Avenue South Minneapolis. Minnesota 55401 [1994: Rev. 1996: Rex'. 1997: Rex'. 2002] 7 EXHIBIT A ADDITIONAL TER~%IS RELATING TO PURCHASE AGREEMENT FOR 5540 WINNETKA AVENUE NORTH Buyer acknowledges that it shall be responsible for pasment of the State Deed Tax due on the sale of the above property, as well as the cost of securing a title comnutment as set forth m thc Purchase A~eement. Buyer will also be responsible for all other closing costs, specifically including all recording costs and all costs to seal the water well on the property, Buyer acknowledges that relocation assistance benefits as determined bx Ever~een Land Services Company will be paid to the Seller, as required by law. and the differential payment on the purchase of a replacement property resulting from the sate of the subject property shall not exceed the sum of S Seller acknowledges and a~ees the detemunat~on of moving expenses and closing costs by Evergreen Land Services Company shall be binding on both parties. SELLER: Dated: .2004. Richard S. Sucky Dated: ,2004. Barbara S. Sucky BUYER: THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE Dated: 2004. By: Don Collier Its: President Dated: ,2004. By: Daniel J. Donahue Its: Executive Director EXHIBIT PRICE DIFFERENTIAL pAYMENT I ANALYSIS OF COMPARABLE PROPERTIES ~ Sub)act ComDaml~le t Comparable Comua~ble i ~ PmDm'ty ! Price laDora~sed) $_~ 000.00 $274.900.0E~ $275.000.0C I A~Oress 5540 WlnnetY, a 1600 Lilac Dr.N I 3835 QuaKer Ln Ave f C~ I~ew Ptooe GolOen Val~e) Date of InsoectJon S~ie ' RamDler One Stow One Stor~. ConsmJcaon N/A N/A , , N/A · Actual A~e/Eff.Age i 52 ! NA N/A N/A Condition EGF Avera~oe GooO No. of IJn~ 1 No. of Rooms 6 6 No. of Be~i~'ooms ,3 4 4 Baarooms Reouire~ 4 4 No. of BaAs 2 4 ' 3 Total ~ea (S~. Ft.) 1.400 1368 1445 Basement Fult FulJ / Fin I Full ! WO Bsmt- Ty~es of Fin. FA / Laun / BR Rms. Neat/Coolin~ Gas FA / Cen~al Gas FA / Wsnaow Gas FA / Central Fireolaces None One None Ot~er Finist'~cl Space ~ Garage Two Att Tw~ Att Two ATT LOt Size 14.0005~1 / .32 A 299x60 / 23.920 In' N?¢lbolt~ood E/B ~ SuDurDan Sci'~3olS Y y y Public j Y y y ' , Transpo~'tation Place of I Y Y Y E ,mplo,vment Water 1. Ty~e 2. 1. City 1. City 1. City 1. Adequato 2. Yes 2. Yes 2. Yes Sewer 1. Type 2. ~ 1. City 1. City 1. City 1. Adequate I 2. Yes 2. Yes 2. Yes Ot~er Comments: ° These amounts factored in to .. comparable price Comparable Price $274,900.00 Project Price $.225,000.00 Difference = $49,900.00 Estimated Moving Expenses ~- S2,100.00 Estimated Closing Costs + $2,500.00 Total Benefit '- $54.500.00 Relocation Coasuimu~:.Scott Meaas Dot,': 2-~2-04 (uodatec~ 5-5-04} JENSEN & SONDRALL, P.A. Attorneys At Law · ' 8525 EDINBROOK CROSSING. ST[. 201 BROOKLYN PARK..N11NNESOTA ~-143- l O0~ ']'ELEPHON£ {763) 424-881 ! * T£LEFAX (763) 403-5t03 e-mail la~ ~'jensen-sondrall.com DOUGLAS J- DEBNERz GORDON L. JENSENI GLEN A- NORTON s~z~x~ .~. So.~o~a.c July 20. 2004 STAC~ A. %¥0005 ' OFCOt'NS£L VIA E-.MAIL TO kmcdonald~"ci.new-hope.mn.us i.o~s O. e,a'.'~s~t) AND BY REGULAR U.S. MAIL Kirk McDonald Community. Development Director City. of New Hope ~401 Xyton Avenue North New Hope. MN 55428 Re: Resolution Approving Purchase Agreement And Relocation Benefits(S540 Winnetka Avenue North) Our File No.: 99.11302 Dear Kirk: Please find enclosed for consideration at the July 26~' EDA meeting a proposed Resolution Approving Purchase Agreement And Relocation Benefits(5540 Winnetka Avenue North) thc referenced properV~'. Also attached to thc resolutmn as exhiNts A and B are the purchase agreement and the relocation benefit analys~s respecuvely. The relocatmn benefit anaiys~s was prepared by Evergreen Land serrates Company. As we discussed, this is the final property, acquismon tn the project. The Suekys' have finally found an acceptable replacement property at a cost of $279,000.00. As a result, staff has decided increase the "differential payment" by $4,100.00 from $49.900.00 to $54.000.00 to make the transaction wof~:. This is appropriate given the fact the property. ~s zoned commercial, however, our appraisal was based on a residential zoning use. In an effort to avoid paying an addmonal $1.500.00 to the property owner to have their own appraisal prepared and possibly incurnng addmonal cost to reappraise the property, staff is recommending we pay the addmonal $4,100.00 differential amount to complete this transaction. As we have also discussed, the Sucky's also operate a lawful home occupauon from their property. As a result, we will also be obligated to pay business relocanon costs. If they can qualify~ ~t ~s my guess the will opt for the $20,000.00 ,'m L~eu" payment. I seriously doubt ~t would cost more than $20,000.00 in actual costs to relocate the business. Please call if you have any questions or comments about the enclosed resolunon or purchase agreement. Very truly yours, Jul3' 20. 200~ Page 2 Steven A. Sondrall. C~5' Anomey'. C~.ty of New Hope JENSEN & SONDRALL. P.A Enclosure(s) P:~Attomey~AS~lorcm'~rk E-Mall Letlernead.fioc ..... ~ ....... ~' ' ......... 30120330 Pro oalBy for Busy Lenders DATA SUMMARY Client: City of New Hope/Ken Doresky 4401 XyJon Avenue N. New Hope, MN 55428-4898 Borrower: N/A Address: 5540 Winnetka Avenue North New Hope, MN 55428 Value: $225,000 Date: February 26, 2004 Appraiser: Gregory V. Callahan, Cert Resl Real Prop Client File: Sucky Foreythe File: 30120330 222 EAST LI'i-I'LE CANADA ROAD, ST. PAUL, MINNESOTA 55117 (612) 486-9550 t FAX: (612) 486-9732 UNIFORM RESIDENTIAL. APPRAISAL REPORT ;,,,o 3012033C 5540 W~nnetKa Avenue Norm ~ N~ ~o~ ~,, M~ ~ 5~2~ Aua~orssunano~L~BlkWl~flofNgOflofslleOffex... ~. ~ennenm ~--.~ 0511821330007 ~m 2~3 ~E ~s 1.8~.9~ ~~s None None C~ of New Ho=e/Ken DomsKy ~ ~01 X~on Avenue ~ New ~o=e MN 5~2~89~ V C~ana~ Ce~ R~i Rea; Pro~ ~ ~ L~te Canaoa Roa= L~}e Canaoa MN 5511- ~ ~ ~.~ ~ ' ~~ ~t ~ 20% ~ ~ 18D 35 ,Va~m ~n~ ~s .ne =.ma~t= T~e suDle~'s nmph~moo~ ~unaanes am Brooklyn Para to the no~h Goloen Vai~ev t~e so~h. County Rd. 81 to t~e east an~ H~q~y 169 to t~e ~. T~s ~s an esiaDl~s~eQ area Winnelka Avenue ~s a Dusy msiaential ~t. County R~. 10. a io~I t~ffJc a~e~ is ~nfn 1/4 m,~ aha o~e~ a=ce~ to . schools, emplo~ent ~me~. f~s. aha m~at~on. ~m~y values nave ~en m~asfn~ Demano for ao ~nfo~ to lhe su~undinq homes. The ne~qh~mo~ nas no ap~rent aove~e See a~a~ for ~,onal ~m~nts - - ~ aS ~O ~ ~ldMe W~iS b W m the N~hW~. des~lwn of I~ ~M~ of ~es and financing cohcelsmfl3, etc; ma~etrnq a~n= ~. MLS statl~ tn~c~e ~at 87.40% of a, J~st~nqs are se,rflq ~fn an am mcew~nq 99.24% oft~e as~mq pnce F~n;nc,nq at the p~sent t~me ~s availaDle from a variety of.souses, w~ic~ aenef~s D~h pme~ial Duyem ano sellem ~o/ecr :G;Gi~&;iG~ for PUDI fit ~) -. IS t~ ~;~ m ~lrM of tM HO~ Owne~' kswlmn (HOAI? ~ ~S __' NO ~s 90X155 SSOm A==mX 13950 SqFt (~er COufl~ ~[= ~ ~ Slopes GentJy b ADv. Avq/~3.95QSF J Z~S~z°nmg ~tmn~ ~ano ~t~ ;~...R'I Smqle Fa~Jiy Resl0e~tlal ' b ~Rectanoular ~ ~m) ~ ~ ~ ' ~ A~equam Utllihes ~ ~ ~ ~~ T~ ~ ~m, ~ Sn~ Covereo ~Y ~* .No Int. Ins~on ~ S~ B~uminous ~ ~ ' ~y~ Asphalt ~ ~. ~ ~- ~oncmte ~ ~ ~ ~ No~al ~il~t7 ~.~w X ~ ~ ~ Yes ' i ~ No~e ~ , c~...n~ ........ --~ ~G .... ~ ~p~ 27053~0192E  GEN~ ~SCRI~ON ~ ~ ~... value. ~onc~e ~ No ~ ~pna~ ~ ~ FUll ~ - ~ ~T~ Casement ~ -- ;', -. - j ~ Cone ~ ~ ~ mone Noted NI~ ~ NOneNote0 j ~E~ ~ ~ ~ ~= ROOMS I ~ al~ L~ 1 X I 1 I ? L~ 2 ~ 4 2 ~ I A~C ~lC~in~ ~ T~ ~ ~ P ~ENmES ~ ~R STOOGE ~h~ ~ ~~~ ' ~ ~ 4Car ~ ~ ~ ~ Yes . ~ ' ~ ~~(~ ~ ~m ~. ~c): ' A~ ~1 ~d~ (~ ~, ~t ~l liMN lo, h~l~l qtK. Io~t NMI~, ITC.) ~OIIM m t~ ~emflts. off the adc. Or iff the P~l~ UNIFORM RESIDENTIAL APPRAISAL REPORT ~,,,,c 3012033C ~E$.TiMATEDSf'~ V~ = ~ 55.000 ~ ~nts On Cost A~OICA (~Ch as sour~ O~ cost esl~ma~ ~ ~ Ft ~,~ = ~ ~ ~ ~ ~. ~ = 0 iThe s~e value as vaunt ~s Daseo Dn mamet = 'T~al economic life of 100 ~ INDICA~ V~UE BY CO; A~ACH = ~ N/A W;nnetka Avenue No~ : ~00 Sumpter Avenue ~4~9 YuKon Avenue N ; 5621 W~sconsm Avenue New Hooe ~ New Hope t N~ Ho~ 5~28 ~ New ~o~ ~o ~ ~Appmx. 1/4 Mile ! Approx. 314 M,e .. ApDrox 1/3 ~ ~ N/A' s ~5.000; S ~3.500 s 2CI 5 ~~ ts O.OO ~S ~1.46 z ~ 130.24 ~ ~ 13336 ~ ~ InsDe~on t ML~Cou~ I ML~Coun~ t MLSZCounIy v~m ~ [ CounW Info. [4 Da~ on Mamet ~ ~ Da~ on Mamet [ 33 Days on Mamm Fm~ I ~A J Cony/0 Po;~s ~ Cony/0 ~s l Cony/0 ~s ~ ~ N/A I By Seller ~ By Seller : ~ By Se~ler ~,of~ ~ ~A t CIs~ 1D/03 ~ Clsd 8/03 ~ CI~ 10/03 ~Su0u~an t Equal Nmq~ ~ Sup. Lo~on -3.500: Sup. Lo~t~on I Fee S~mple ~ F~ S~mple ~ Fee Simple t F~ S~mple .32 Acm : .24 Acm ' .~ Acm ' .~1 Acm t Res~oe~al ~ ResJoenUAvq t Res~oenl~al I S~mdar Vmw I Rambler ~ Ram~er~ql. ~ Ram~ler~ql ~ RamDler~ql a~ ~. t0 Goo~ tEqual Qual~y ~Simitar Qual~ ~S~m,ar Qual,y ~52 Yin. 147 Yearn 135 Yearn ~ 52 Yearn ~ Av~. to Good ~ Sup. Con~ -20.000 ~ Sup. ~on~ -5.0OD ~ S~mdar '~,~ 2~ ~ 4, 2.00; ~ 3~ ~.00' 3.000~ '7~ 3 2.~; 3.000~ 7, 3 2.00, 3.00C ~ 1.400 ~ ~ 1,016 ~n 9.600; 1.716 ~ R -7.900, 1.511 ~ n -2.80d ~ ~ : 1~0 SF F,n t600 Sq Fl Fin 6.600 [ 120 SF Fin 11 40019~ Sq FI Fin 3.500 I Avemqe ~il. I Equal ~il~ ~ S~milar ~il~ ~ S~milar ~ Gas FA ClAir ~ Gas FA ClAir ~ Gas FA C/Afl t Gas FA ClAir ¢~ ~ ~ Conceate0 ~ Unkn~ ~ Unkn~ ~ Un~no~ 5.000 ~2 Car Gamqe 5.000; 2 Car Garaqe 5.000 Pm~. ~. ~ Pomes. Patio ~ GazeDo,P~o : ' ~4 Seas. Pom~ ; ~ None 6.000 ~ N/A I None ~ 1 FJmp~ace .2.0001 None I NIA 1NIA ~ Secu~ S~t. -1.500 t N/A t N/A ~ H~t Tub -2,0OD I N/A I None r~:~ ~ t~ J~: 18% i~: 11.81% . ~: ~ S 230,200~ ~ S ?~3.000~ 5.~% S 212700 ~ S~ ~,,~ (maue~ t~ ~ ~x's ~t~d~ lo f~ ~n~. Itc. ) Room count aojustments are I~cluoeo are maoe usm s25 r s uam foot. Bath mom ~ustments are maoe ~nls~ea ~iscussion of sales com~stments. NIA See C~I- t ~ ~"~_ ~'~ _"~. nu.! CO~LE ~,/~ ~ .... . --,~= ~,,u f ~ ~omDs 6ales ~n~ I See Como Sele~ .... ~ ~A ........ I~A t ML~Cou~ Reco~s I ML~Coun~. ~ ...... ~ ~ :- _ This, ~ ~ elem~f t~ In~Jcate~ value ~ sales corn anson: ~5,0~, T~e ~le corn anson ~e~ re~e~s t~e a~ions of The ~IMN P~2~2 ~_-:::~..-, s.~,.,, UNIFORM RESIDENTIAL APPRAISAl- REPORT Wmn~ A~nue No~ ~4~3 B~ A~n~ N. I~p~. ~4 Mile ~ NIA ~ 198.600 ~ lns0e~mn I ML~Oou~ I Cou~ Info ' 15 Da~ on I ~A ~ By Seller ~ SuDu~an [ Sup. Lo,iOn -3.500: ~ Fee S~mpte i F~ S~mple . .32 A~ ~ .23 Acm ~ Res~eentml [ S~m~lar W~ ~ Ramoler t RamDler~ql. Goo~ 152 Yin. ~ 42 Yearn t Avg. to Goo~ ~ S~m~lar Con~, 7: 4: 2.00~6, 3; 1.50: 3.000, 1.400 ~ 2.800 ~ ~ R I~0 S~ Fm 1625 Sq Ft Fin 6.400 { Gas FA C/Air t Gas FA ClAir i U~Kn~ ~4 Car Garage ~ 1 Car Gamqe 10.000 ~ ~ Porcns. Pat~o l~e ~ck 3.000 ~ : N/A ~ None N/A ~ None ~: 15% t~ 0.0~ ~ 0.0~ ~- 1~ ~ ~1,800~- 0.0~ t 0i~. 0.00% ITEM ~ SUBJECT COMPARABLE NO 4 COMPARABLE NO 5 COMPARABLE NO 0ae. em~ ~ ~ N/A I See Comp ~les G~ I S~ Comp Sales Gn0 ; See Comp Sales t N/A I MLSICou~ Reco~s I ML~County R~o~s I MLS/County Reco~s ADDENDUM ADDITIONAL FEATURES: In add,on, the sub.~ect has: an at/ached four car garage, two porches and centraJ air COMMENTS ON SALES COMPARISON: Because the subtect is located near the busy comer of WInnetka Avenue and Bass La~(e Roa0. al; comparablas are considered superior in location. Per irs MLS listing information, comparable one has a new roof, new 2 car garage, new dnveway. new storm w~ndows, updated kitchen and updated baths. [t is considered superior in condition it has one tess bath and one less bedroom and is infenor in above graQe room value. As noted dunng an interior Inspection of the subject, comparable two is cons:derad superior In condihon. Comparables two and three have one less bedroom and are ~nfenor Jn above gra0e room value See additional comparable four. TRANSMITTAL LEI-rER: The subject was inspected on February 26. 2004. The estimated market value as of February 26, 2004 (effective date), is $225,000. The property was appraised by Gregory V. Callahan. ~cance Number 4002346, Certified Residential Real Property Appraiser. A certified residential real property appraiser may appraise resident,at property or agncultural property without regard to transaction value or complexity. This appraisal report is a "Revised Summary Appraisal Report". It conforms to the 1997 Uniform Standards of Professional Appraisal Pracace. Per original client request, the subject was previously inspected on December 12, 2003 as a dnve by inspection only (no intenor inspection requested). The client now has requested an intenor and extenor inspection. No responsibility has been assumed for matters wflich ara legal in nature, nor has any oDin;on on them been rendered, other than assuming marketable title. Liens and encumbrances, if any, have been disregarded and the property was appra~secl as though free of indebtedness. Please feel free to call us if you have a question. ADDITIONAL COMMENTS: 1. The purpose of the appraisal is to estimate the market value of the sub)ect property for litigation purposes. 2. The legal desCnption of the subject property can be found on page 1 of the 1004 form. * 3. The reasonable marketing penod for the subject Property is under 90 days, past4' According36 monthst° the county and the MLS system, the subject Properly has not been transferred in the 5. The subject property was inspected on February 26, 2004, the report was Prepared on February 26, 2004, the effective date of the appraisal is February 26, 2004. 6. The subject is an existing structure. This appraisal is made "as is." 7. Personal property was not included in ~ aPpraised value. ADDENDUM 8 We have consiOere0 al/t~ree approaches to value Tl~e income apDroacl~ was not utilizecl due lack of reliable rental data of s~ngle family homes Jn ~fs nefghoornooc~. Tne cos; aDoroacn was considerecl but not consloerecJ applicable, therefore Jt was not 9. The subject is a slngte family resfdentiat protoerty. Revenues. exoenses, and/or vacancies od 'apply. . .... - - 10. Current and future emDloyrnent or comloensat~on is not contrngent uoon the reoortm;~ of a pre0etermlneO value or direction in value that favors the cause of the c~ent, the amoun~ of the value estJmate, ~e attarnment of a stJpulafad result or the occurrence of a suDsecluent event 11. This aloioraisal reloort was completed in conformity w~th the Uniform Standards of Professional A~ol~raisal Practice. 12. If tr~e photos included in thfs apprafsal are digifal/electTonic rmages, they have not Peen entargecl. entranced, or altered in any way. 13. If electronic/digital signatures are used, it has Ioeen ruled acceptaDle appraisal practice Dy USIOAP. 14. The appraiser certifiecl that if this appmrsal incJucled an electronic/digital s;gnature It rs mafntamecl and controllecl by the apprarser complet;ng the report. 15. The subject was previously mspectecl on DecemDer 12, 2003 (clnve I:)y insloect~on only). GC HOSTER~AN JR HIGH SCHOOL WINNETKA R-2 ELEMENTARY~ ~ '~ R- 3 , ~ ~ ~T, RAPHAEL EDA REQUEST FOR ACTION Originating Department ApProved for Agenda Agenda Section Community Development ~ 07-26-04 EDA i Item No. By: Kirk McDonald, Director of CD B Amy Baldwin, CD Assistant 6 A RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AND FOUNDATION LAND DEVELOPMENT, LLC FOR THE REDEVELOPMENT OF THE FORMER FRANK'S NURSERY PROPERTY, 5620 WINNETKA AVENUE NORTH (IMPROVEMENT PROJECT NO. 733). REQUESTED ACTION Staff recommends that the EDA approve the attached resolution, which approves the contract for private redevelopment with Foundation Land Development, LLC for the former Frank's Nursery redevelopment site at 5620 Winnetka Avenue North, located in the Livable Communities study area. POLICY/PAST PRACTICE The EDA has previously entered into contracts for private redevelopment with developers to facilitate improvements in the city. This agreement will facilitate the construction of 44 owner-occupied, market rate townhome units in the Livable Communities area and address life cycle housing goals outlined in the Comprehensive Plan. BACKGROUND The EDA initially approved the redevelopment contract for this project with Armory Development at its April 26, 2004 meeting. As discussed at the June 21, 2004 work session, Armory Development is requesting to transfer the redevelopment contract to a new developer who will construct the same project as previously approved. The new developer is Foundation Land Development, LLC or Jim Deanovic, an experienced developer who has completed many successful development projects throughout the metropolitan area. Staff does not have any issue with the change in developers and recommends approval of the resolution. ATTACHMENT · Resolution h\RFA\PLANNING\Livable Communities\Q-5620 Wtka developer chan e.doc NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AND FOUNDATION LAND DEVELOPMENT, LLC FOR THE REDEVELOPMENT OF THE FORMER FRANK'S NURSERY PROPERTY BE IT RESOLVED by the New Hope Economic Development Authority (the "EDA") as follows: Section 1. Recitals. 1.01 It has been proposed that the EDA enter into a Contract for Private Redevelopment (the "Contract") with Foundation Land Development, LLC (the "Redeveloper") to redevelop the former Frank's Nursery site at 5620 Winnetka Avenue North. Section 2. Findings. 2.01 The EDA hereby finds that the Contract promotes the objectives as outlined in its Restated Redevelopment Plan for Redevelopment Project No. 1 established pursuant to Minnesota Statutes, Section 469.001 et seq. 2.02 The EDA hereby finds that it has approved and adopted Tax Increment Financing District No. 04-1 (Special Law) and the EDA has approved and adopted the Tax Increment Financing Plan relating thereto pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, inclusive, as amended and supplemented from time to time. Section 3. Authorizations. 3.01 The President and the Executive Director (the "Officers") are hereby authorized to execute and deliver the Contract when the following condition is met: Substantial conformity to the Contract presented to the EDA as of this date with such additions and modifications as those Officers may deem desirable or necessary as evidenced by the execution thereof. Adopted by the EDA this day of ,2004. Don Collier, President ATTEST: Daniel J. Donahue, Executive Director G:\WPDATA\N\NEW HOPE\13\DOO\EDA RESOL AUTHG EXEC OF REDEV AGR V2.DOC EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development /"~, X~ 07-26-04 EDA Item No'. By: Kirk McDonald By: 7 A RESOLUTION AUTHORIZING APPROVAL OF A TERM SHEET BE~EEN THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AND RY~ND HOMES FOR PHASE Iii OF THE WlNNET~ GREEN REDEVELOPMENT (IMPROVEMENT PROJECT NO. 751) REQUESTED ACTION Based on direction provided by the Ci~ Council on June 28, 2004, staff and consultants have coordinated on terms of agreement with Ryland Homes on the Phase III of the Winnetka Green project. Enclosed is a term sheet and resolution prepared by Krass Monroe, the ci~'s redevelopment consultant. Also enclosed is the most recent concept plan prepared by Ryland Homes for Phase Iii. Ryland has also included a narrative related to the expansion. Jim Casserly from Krass Monroe will be present at the meeting to review the terms of agreement with the EDA. Approval of the te~ sheet is the ne~ step that needs to be taken to keep the Phase III expansion moving fo~ard. Staff recommends approval of the resolution. POLICY/PAST P~CTICE The Council routinely takes action on redevelopment projects that are consistent with the Comprehensive Plan of the city. BACKGROUND Ryland Homes presented a proposal for a Phase III expansion of the Winnetka Green project to the City Council at the June 21, 2004, work session. On June 28, 2004, the Council authorized staff to coordinate with Ryland Homes on the proposed Phase III of the Winnetka Green redevelopment project. Staff and consultants have been working with Ryland Homes to develop the aEached term sheet over the past month. The term sheet is acceptable to both the city and the redeveloper. According to the term sheet, the six parcels east of Sumter Avenue will be conveyed to the develop by May 1, 2005 and best effo~s will be used to convey the ~o parcels west of Sumter Avenue by July 1, 2005. To meet the prope~y conveyance dates outlined in the te~ sheet, the ci~ would need to have control of the prope~ies approximately one month prior in order to ~mplete environmental abatement and demolition activities. If a volunta~ purchase agreement for a parcel ~n not entered into, eminent domain will be used for acquisition. The term. sheet also indi~tes that approximately 42 units of the same product ~pes as approved in the original plan will be constructed in Phase III, with the exact number and ~pe of units to be determined upon completion of a stormwater analysis, su~e~ and plannin~ commission and Council approval. '~:~a~plannin~livable com'munities~Q-te~m sheet ~and phase III .' ,,, ,, , Request for Action Page 2 07-26-04 Ryland Homes has submitted a revised concept plan, as follows: Ori,qinal Plan Phase III Concept Plan 117 Carriage Homes 184 Carriage Homes 58 Heritage Condos 34 Heritage Condos 175 Homes 218 Homes The next steps would include: · Continue to coordinate with property owners on acquisition process · Conduct a neighborhood meeting in August · Continue work on detailed plans · Amend redevelopment contract · Complete blight report · Amend existing TIF District Staff recommends approval of the attached resolution and term sheet related to the Phase III expansion of Winnetka Green. A'I-i'ACHMENTS · Resolution · Term Sheet · Ryland Homes Correspondence (07-20-04) · Concept Plan NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION NO. A RESOLUTION AUTHORIZING APPROVAL OF A TERM SHEET BETWEEN THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AND RYLAND HOMES FOR PHASE III OF THE WINNETKA GREEN REDEVELOPMENT BE IT RESOLVED by the New Hope Economic Development Authority (the "EDA") as follows: Section 1. Recitals. 1.01 Ryland Homes ("Ryland") of The Ryland Group, Inc. is currently constructing Phases I and Ii of the Winnetka Green redevelopment project on Winnetka Avenue East. 1.02 Ryland approached the City Council of the City of New Hope (the "Council") with a proposal for a Phase III to be added to the project and, at its June 28, 2004 meeting, the Council authorized staff to examine the feasibility of adding Phase III (the "Site"), 1.03 The Site is located within Redevelopment Project No. 1. 1.04 The EDA and Ryland have worked to refine the Site plan for Phases I and II to accommodate and include Phase III and also determine the economic feasibility of Phase II1. 1.05 The EDA has presented a term sheet (the "Term Sheet") to Ryland, attached as Schedule A, which outlines Phase III and the terms and conditions under which the EDA is willing to acquire the parcels in the Site for inclusion in the Winnetka Green redevelopment. Ryland has indicated its willingness to undertake Phase III in accordance with the Term Sheet. 1.06 It has been proposed that the EDA enter into a Contract for Private Redevelopment (the "Contract") with Ryland if mutually agreeable terms can be reached consistent with the Term Sheet. Section 2. Findinqs. 2.01 The EDA hereby finds that Phase III of the Winnetka Green redevelopment project promotes the objectives outlined in its Restated Redevelopment Plan for Redevelopment Project No. 1 established pursuant to Minnesota Statutes, Section 469.001 et seq. 2.02 The EDA hereby finds that the Site is located in an area which the EDA intends to include in a modification to tax increment financing distdct No. 03-1 (Special Law) pursuant to Minnesota Statutes, Section 469.174 et seq. and, as applicable, Laws of Minnesota 2003, 1st Special Session, Chapter 21, Article 10, Section 10, all as amended and supplemented from time to time. Section 3. Authorizations. 3.01 The President and the Executive Director (the "Officers"), along with necessary staff, attorneys and consultants for the EDA, are hereby authorized to negotiate a Contract for Pdvate Redevelopment with Ryland relating to the Site, which Contract shall be presented to the EDA for its approval. Adopted by the EDA this day of ,2004. Don Collier, President ATTEST: Daniel J. Donahue, Executive Director G:\WPDATA\N\NEW HOPE~6\DOC\EDA RESOL AUTHG TERM SHEET. DOC 2 Schedule A TERM SHEET v5 7/21/O4 TERM SHEET City. of New Itope Winnetka Green (Phase III) Redeveloper: The Ryland Group, Inc. Authority: New Hope Economic Development Authority City: The City of New Hope, Minnesota Redevelopment Property: The 8 cross-hatched parcels shown on the diagram attached as Exhibit A adjacent to Winnetka Green Phases I and II and currently owned by various private parties. Property Acquisition: The Authority will attempt to purchase the Redevelopment Property through negotiations with the current owners. The Authority will use its best efforts to schedule closings to occur as early and on as few different dates as possible, which the Redeveloper acknowledges may necessitate permitting property owners to remain in their homes following closing under a lease arrangement. The Authority will assign the purchase agreements to the Redeveloper so that the Redeveloper will take title to the Redevelopment Property directly. Eminent Domain: If the AuthOrity is unable to enter into voluntary purchase agreements for some of the parcels, the Authority will acquire them through eminent domain, including the use of quick take, provided (1) the required public purpose findings can be found to support such action and (2) a Redevelopment Agreement has been executed. Modification of TtF District: The Authority shall modify tax increment financing district 03-1 (Special Law) to include the Redevelopment Property (the "TIF District") assuming the statutory tests for modification are met. The Authority will properly consider and will need to make all the necessary findings, including the "but for" finding for modification of the TI3' District. Conveyance of the Redevelopment Property to the Redeveloper shall be contingent upon the Authority's ability to modify the TIF District. Redeveloper Due Diligence Period: The Redeveloper shall have the right during the Feasibility Period to investigate title and to make such investigations, studies and tests of the Redevelopment Property as it deems necessary or appropriate to determine the feasibility of proceeding with Phase 1II. The Feasibility Period shall begin upon execution of this Term Sheet and end 30 days thereafter. Public Improvements: The Authority will perform the Public Improvements listed on Schedule F to the Redevelopment Agreement relating to Phases I and II (the "Original Agreement"). Sitelmprovements: The Redeveloper shall construct and pay for the Site Improvements listed on Schedule G to the Original Agreement. Redevelopment Costs: The Authority will incur the following costs in connection with its acquisition of the Redevelopment Property and performance of its other obligations hereunder ("Redevelopment Costs"): · Appraisals · Blight analysis · Acquisition, including title, survey, closing and escrow · Relocation Demolition Environmental testing and remediation, if any · Public Improvements · Third-party legal and consulting fees, including planning, engineering, modification of the TIF District, preparation of a redevelopment agreement for Phase III and acquisition of the Redevelopment Property The parties may agree that the Redeveloper will perform demolition and Public Improvements, subject to the Authority's right to review the proposed contracts for such work. Land Purchase Price: The Authority shall sell the Redevelopment Property to the Redeveloper for an amount per unit equal to the Authority's total · Redevelopment Costs divided by the total number of units. The Purchase Price per unit shall be reduced for units completed by December 31, 2010 as set forth under "Reduction in Purchase Price" below. Payment of Purchase Price: (1) The Redeveloper shall pay earnest money to the Authority of $25,000 upon execution of this term sheet and an additional $125,000 upon execution of the Redevelopment Agreement, with the funds to be used for Redevelopment Costs. The Authority shall provide a monthly accounting of disbursements of earnest money. (2) In addition, the Redeveloper shall pay to the Authority, at least one day prior to each closing on a parcel of Redevelopment Property, immediately available funds in the amount required to be delivered at the closing. For parcels acquired by eminent domain, the Redeveloper shall pay to the Authority the amount of court deposits or other payments at the time such deposits/Payments are required to be made. Amounts paid by the Redeveloper in excess of the Redevelopment Costs will be refunded to the Redeveloper. Redeveloper Corporate Approval: The executed term sheet shall be subject to Redeveloper corporate approval. If such approval is not obtained, the Authority will refund earnest money payments less Redevelopment Costs incurred by the Authority prior to its receipt of notice of such lack of approval. Reduction inPurchasePrice: The Purchase Price of the Land will be reduced for units completed and certificates of completion issued by December 31, 2010 as follows. For such units, the Authority will reimburse the Redeveloper for Purchase Price paid in excess of the reduced Purchase Price per unit at the time the certificate of completion is issued for each building. (1) For units completed by 12/31/07, the Purchase Price is reduced to $20,000 per unit. (2) For units completed between 1/1/08 and 12/31/08, inclusive, the Purchase Price is reduced to $22,500 per unit. (3) For units completed between 1/1/09 and 12/31/09, inclusive, the Purchase Price is reduced to $25,000 per unit. (4) For units completed between 1/1/10 and 12/31/10, inclusive, the Purchase Price is reduced to $27,500 per unit. Example: Assume the Authority incurs $2,500,000 in Redevelop- ment Costs and the Redeveloper pays that amount in Purchase Price. If 40 units are expected to be constructed, the Purchase Price is $62,500 per unit. For each building completed before December 31, 2007, the Purchase Price per unit is reduced to $20,000, and the Authority will reimburse the Redeveloper an amount equal to the excess purchase price paid per unit of $42,500 ($62,500 - 20,000) times the number of units in the building. 3 Deadline for Acquisition of Redevelopment Property: Subject to any appeals of condemnation awards or relocation benefits, if the Authority has not acquired all of the Redevelopment Property by December 31, 2005, the Redeveloper may require the Authority to accept reconveyance of any portions of the Redevelopment Property conveyed to the Redeveloper and the City will refund all payments of Purchase Price paid by the Redeveloper. Zoning and Land Use Approvals/Easements: Normal and customary site and building plan review requirements will be followed. The Redeveloper shall pay for rezoning, subdivision, platting, plat amendment, PUD and preparation of restrictive covenants, easements, reciprocal easements, and any other documentation necessary for the construction and sale of the Minimum Improvements. The Redeveloper shall be responsible for obtaining all land use and zoning approvals. Permits/Fees: The Redeveloper shall comply with all applicable City building codes and construction requirements. The Redeveloper will pay the normal and customary permit, plan review, utility access and park dedication fees and shall be responsible for obtaining all building permits prior to construction. Minimum Improvements: The Redeveloper shall construct approximately 42 units of a mixture of Heritage Condominiums and Carriage Townhomes. The site plan may or may not include any Heritage Condominiums in Phase III. The exact number of units will be determined upon c°mpletion of a stormwater analysis, survey, and planning commission and City approval. The Redeveloper shall use its best efforts to cause the average unit sales price to not be less than $220,000, including upgrades. · Heritage Condominiums will have a base sales price of approximately $169,000 per unit, exclusive of upgrades. A combination of three floor plans will be used. · Carriage Townhomes will have a base sales price of approximately $189,000 per unit, exclusive of upgrades. A combination of three floor plans will be used. The quality of the Minimum Improvements shall be comparable to or better than that constructed by the Redeveloper in Winnetka Green Phases I and II. The description of the housing types and specifications of construction materials and fixtures are as set forth in the Original Agreement. Conveyance: The Authority shall convey the Redevelopment Property to the Redeveloper after it has acquired all of the parcels and completed the work to be performed by the Authority on the Redevelopment Property, unless the Authority has elected to assign the purchase agreements for the Redevelopment Property to the Redeveloper and the Redeveloper has thus taken title thereto directly. The Authority will convey the six (6) parcels east of Sumter Avenue to the Redeveloper by May 1, 2005 and will use its best efforts to convey the two (2) parcels west of Sumter Avenue by July 1, 2005 (the "Closings"). Taxes/Special Assessments: The Authority will pay all special assessments pending or levied on the Redevelopment Property at each Closing. Taxes will be prorated between the parties at each Closing. Title: The Authority will transfer marketable title by quitclaim deed and will pay for a title commitment. Any title insurance and/or endorsements requested by the Redeveloper will be paid for by the Redeveloper. At each Closing the Authority will provide the Redeveloper with evidence of marketable title. Infrastructure/Other Fees: There shall be no increases by the City in its portion of fees for the Redevelopment Property, including park dedication, SAC, WAC, storm water, development, infrastructure, impact, and permits through October 31, 2005. Internal Drives: The Redeveloper will construct internal drives on the Redevelopment Property as shown on the Site Plan in accordance with City specifications. The respective condominium and town- home association(s) will have maintenance responsibility for the drives (including upkeep, street sweeping and snowplowing). Timing: Begin on or about June 1, 2005 Complete on or about December 31, 2010 Financing/Encumbrances: The Redeveloper will obtain any necessary private financing. The Redeveloper shall not encumber the Redevelopment Property and will indemnify and hold the Authority harmless from any liens. Remedy Upon RedeveI- oper'sDefault: The conveyance transferring the Redevelopment Area to the Redeveloper will contain a right of reverter which will be superior to the rights of any liens. If the'Redevelopment Property revests in the Authority, the Authority will pay the Redeveloper $20,000 per unit. The right of reverter shall be released for each finished building upon the issuance of the fn-st certificate of occupancy for an individual residential trait in the building. Tree Preservation: The Redeveloper will use its best efforts to preserve the large trees on the Redevelopment Property. Resolution for City Center Housing: The Authority will adopt a resolution which designates the Redeveloper as an approved housing builder for a one-year period for a portion of the housing to be included in the proposed City Center project. Effect of Term Sheet: This Term Sheet outlines the terms under which the parties are willing to enter into a Contract for Private Redevelopment, but does not constitute an offer or acceptance on either party's part. All rights and obligations with respect to the Redevelopment Property shall only be as provided for in a Contract for Private Redevelopment approved by the Authority and the Redeveloper. We are in agreement with all of the foregoing dated this day of 2004. The Ryland Group, Inc. New Hope Economic Development Authority By: By: Its: Its: By: .. Its: G:\WPDATA\N\NEW HOPE~6\DOC\TERM SHEET V5.DOC ) S6TI~ AVE N ~ l~ ' f ~=' CHURCH ~ 5506 ' .... 55TH AVE N ~ - 5500 5445 5~ 5457 ~ 5456 54~7 54~6 ~ " 5451 5446 t 54.37 , Z 54~8 5453 Z ~54 54~5 5~2 .. "& 5417 5~7 5406 ~ 5~0 5340 5536 5315 5J25 , 5~24 5306 EXHIBIT A Redevelopment Property [attach parcel diagramJ I PIN Address ~ 5509 Sumter Ave N 05-118-21-33-0086 - Sumter Ave N None; Tract J, Registered (30' Sumter ROW east of 5509) Land Survey No. 97 5510 Sumter Ave N 05-118-21-33-0099 - Sumter Ave N None; Tract K, Registered (30' Sumter ROW west of 5510) Land Survey No. 97 5501 Sumter Ave N 05-118-21-33-0030 7708 55th Ave 05-118-2t -33-0098 7700 55th Ave 05-118-21-33-0097 7624 55th Ave 05-118-21-33-0096 7616 55th Ave 05-118-21-33-0095 7608 55th Ave 05-118-21-33-0094 RYLAND Jnly 20~ 2004 The R¥1and Group, Inc. Mayor and City Council 7600 Executive Drive City of New Hope Ede,~ Prairie, MN 55344 Contracfor's Lic # 20035443 4401 Xylon Avenue North New Hope, MN 55428 www. ryland.com Honorable Mayor and City Council: At your Council meeting of July 26, 2004, the City staff is recommending approval of a Term Sheet for the acquisition and development of Phase III of Winnetka Greens. We have all been brought to this point because of the planning you have all done, the vision you have had, and the hard work and parmership of the City of New Hope and Ryland Homes. The City of New Hope can be very proud of the success that Winnetka Greens is experiencing. We have continued to work hard with the City staff and consultants to determine the feasibility of expanding into Phase III of Winnetka Greens. After meeting with the City Council several weeks ago and taking your direction, along with existing site considerations, we have arrived at a plan that supports the TIF, solves the drainage and storm water issues that have been plaguing the neighborhood, results in the most high value homes, and provides a wonderful open space buffer to the existing neighborhood along 55th Avenue. We request that the City Council approve the term sheet and the concept site plans attached to this letter, so that we may begin the City review process and be ready for building construction in this Phase next Spring. As part of the dialog with the City Council, we have been sensitive to the Council's desire for a variety of homes, and to add housing styles as our presents increases in New Hope. We have heard about the need for maintenance free single-family detached homes, the desire for basements in homes, and the need for single level homes with basements. Although this could not all be provided in Winnetka Greens, your staff has suggested that we look at the possible development of the City's excess parkland on the eastern border, adjacent to the railroad, north of the New Hope Ice Center. We have studied this property and feel that we can compliment Winnetka Greens, the existing homes near the park, and be responsive to the City Council desire for additional housing styles. We have included a concept plan of the City property that would allow the development of 33-35 Urban Single Family Homes and Urban Single Level Twin Homes. Both of these homes provide maintenance free living, each appealing to a different life-style and need. We feel confident, at this point, that the two-story Urban Single Family home would do well, and we would also be willing to offer the Twin Home for sale in this market. Both of these styles work on the lot sizes designed, and the styles are complimentary, and are designed to work in the same neighborhood. Both homes have two car garages and full basements. Pricing for these homes would be in the mid to high two hundreds. Both of these homes are modeled in our Eden Prairie Community of Hennepin Village. We would be happy to arrange for a tour at your earliest convenience. If the City Council supports this concept, we would like to move forward with the process of acquisition and review. Because the property is within three blocks of Winnetka Greens, and we have established a market rate purchase price with the City, we would like to proceed with the City on the same price per lot ($20,000) for the raw land as Phase III of Winnetka Greens. There would be no City TIF involved in this sale. We respectfully request the City Council to direct the City Staff to work with Ryland to prepare a purchase agreement for the sale of the excess City land to Ryland Homes. I appreciate your thoughtful consideration in this matter. Sincerely, A Land Resources Manager Ryland Homes Twin Cities Division II I I Originating Department Approved for ,~genda Agenda Section Community Development ~-~ July 26, 2004 EDA item No. 8 DISCUSSION REGARDING CONCEPT DE~LOPMENT PROPOSAL BY RYLAND HOMES FOR CITY-OWNED PROPERTY NORTH OF C. P, RAILROAD; MOTION AUTHORIZING APPRAISAL OF PROPERTY REQUESTED ACTION Staff requests that the EDA discuss the concept development proposal by Ryland Homes for the city-owned property north of the C. P, Railroad. If the EDA is interested in pursuing the potential sale of this property for future development, staff recommends approval of a motion authorizing an appraisal of the property. POLICYIPAST PRACTICE The EDA considers concept development proposals from developers for city-owned properties on a case-by-case basis, and the first step is usually the completion of an appraisal to determine the value of the property. BACKGROUND in discussions with Ryland regarding the proposed Phase 3 expansion for the Winnetka Green project, staff and Council both have raised the issue of providing more "single level" new construction options in the city. While this may not be financially feasible with the Winnetka Green Phase 3 expansion, Ryland has inquired about other potential development sites in the city. Staff made Ryland aware of the vacant city-owned property north of the C. P. Railroad, and Ryland has responded with the attached concept development proposal for 33 to 35 urban single-family homes and single-level twinhomes. The proposal from staff would be to sell the property to Ryland for the market rate price. Staff indicated to Ryland that the last time the EDA or City Council discussed this property was in 1996-1998, and at that time a majority of the Council did not want the eight-plus acre parcel developed. Over the years this property has been a concern for both the Police and Public Works departments, and staff is inquiring if the EDA wants to reconsider the development of this property. The City Attorney is conducting research on the title of this property, but it is not park property and it is believed that there are no development restrictions on the parcel, which is zoned R-l, single-family residential. Staff supports providing a variety of new housing options in New Hope, and if the EDA is interested in this proposal, recommends that an appraisal be completed on the property, and the matter then brought back to the EDA for further discussion. FUNDING If the appraisal is funded by the city, EDA funds would be utilized. The property is not located in a tax increment financing district. MOTION BY SECOND BY ! I I Request For Action - - Page 2 ATTACHMENTS · Location map · Ryland correspondence · Concept plan · Models hRFNPlanning/PlanninglQ-NorthCPRailroad.doc · III1~ GH -- R- 2OL : WINNETKA ; ELEMENTARY SCHOOL --- -- CHURCH ~1~-3 'x~ ~ "'" i-- -~-- ~ ..... '-'- J ~ ~ . ~. _. ~ '~ ....~ .............. , L! j Ill- ........................ .. ~ ....... Z~i~'~'~ ~ DPER ....... ....... ~ ........ ~..~ ~ .... .... ~ R-E ....... RYtAND The Rwand Group~ inc. Mayor and City Council City of New Hope :~ -... 4401 Xylon Avenue North New Hope. MN 55428 Honorable Mayor and City Council: At your Council meeting of July 26. 2004, the City smffis recommending approval of a Term Sheet for the acquisition and development of Phase III of Winnetka Greens. We have all been brought to this point because of the planning you have all done, the vision vou have had. and the hard work and parmership of the City. of New Hope and Ryland Homes. The City. of New Hope can be very. proud of the success.that Winnetka Greens is experiencing. We have continued to work hard with the City. staff and consultants to determine the feasibility, of expanding into Phase III of Winnetka Greens. After meeting with the City. Council several weeks ago and taking your direction, along with existing site considerations, we have arrived at a plan that supports the TIF, solves the drainage and storm water issues that have been plaguing the neighborhood, results in the most high value homes, and provides a wonderful open space buffer to the existing neighborhood along 55t~ Avenue. We request that the City. Council approve the term sheet and the concept site plans attached to this letter, so that we may begin the City review process and be ready for building construction in this Phase next Spring. As part of the dialog with the Ci~ Council, we have been sensitive to the Council's desire for a variety of homes, and to add housing styles as our presents increases in New Hope. We have heard about the need for maintenance free single-family detached homes, the desire for basements in homes, and the need for single level homes with basements. Although this could not all be provided in Winnetka Greens, your staff has suggested that we look at the possible development of the City's excess parkland on the eastern border, adjacent to the railroad, north of the New Hope Ice Center. We have studied this property and feel that we can compliment Winnetka Greens, the existing homes near the park, and be responsive to the City Council desire for additional housing styles. We have included a concept plan of the City property that would allow the development of 33-35 Urban Single Family Homes and Urban Single Level Twin Homes. Both of these homes provide maintenance free living, each appealing to a different life-style and need. We feel confident, at this point, that the two-story Urban Single Family home would do well, and we would also be willing to offer the Twin Home for sale in this market. Both of these st-vies work on the lot sizes designed, and the stvles are complimenta~', and are desi~maed to work in the same neighborhood. Both homes have two car garages and full basements. Pricing for these homes would be in the mid to high two hundreds. Both of these homes are modeled in our Eden Prairie Communit3.' of Hennepin Village. We would be happy to arrange for a tour at your earliest convenience. If the City. Council supports this concept, we would like to move forward with the process of acquisition and review. Because the property, is within three blocks of Winnetka Greens, and we have established a market rate purchase price with the Cit3'. we would like to proceed with the City. on the same price per lot ($20,000) for the raw land as Phase III of Winnetka Greens. There would be no City TIF involved in this sale. We respectfully request the City. Council to direct the City Staff to work with Ryland to prepare a purchase agreement for the sale of the excess City. land to Ryland Homes. I appreciate your thoughtful consideration in this matter. ....4,inc__erely, _.... Clms Enger Land Resources Manager Ryland Homes Twin Cities Division KINNELON - THE AT HENSXlEPIN VILI.,AGE i LE\'ATION t3- .q.t-lOw,x. \VITH (~I"I'I~;NAL BRICK tl-tt~N'i ~ L ['\'ATION A E LEVATION C O~ FIRST FLOOR BASEMENT OPTIONAL GARDEN BATH OPTIONAL BEDROOM 3 mm~mo= 2 ~~ SECOND F~R ~ B~US R~M THE MONTCI_'AIR AT HENNEPIN VILLAGE E ~_ E V A T I O N D - SHOWN WIT'tff OPTION:X[ BRICK t RONT VATI O N B- SHOWN E L E VAT I O N A ()P'IiONA[ BRICK FRON'[ Piano. pnces. ?edliCmon~ subiecr t,~ chan:v without nor, cz. See SaJe~ (doumeJor ~,r detail. "t.-~,~--:.; ~ I~e~ OPT. KITCHEN r-~., ~=-o- ~ ISLAND ~..__~.__i~ FIRST FLOOR OPT. FINISHED LOWER LEVEL OPT. SITTING ROOM OPT. BONUS ROOM Ol~. G~RDEN BATH OPT. BEDROOM 4 SECOND FLOOR AT HENNEPIN VILLAGE [ L E \'ATION A VAT I O N B- SHOWr,,: E L E VAT I O N C ~1'7 ION,,\L BRICK. IRt)NJ M,~TI~R OPTIONAL GARDEN BATH ......... .~: SECOND FLOOR OPTIONAL FINISHED - r' I FIRST FLOOR BASEMENT OPTIONAL DEN OPTIONAL BEDROOM 4