040896 EDA Official File Copy
CITY OF NEW HOPE
£DA AGENDA
EDA Regular Meeting #6 April 8, 1996
Agenda #7
President Edward J. Erickson
Commissioner W. Peter Enck
Commissioner Pat La Vine Norby
Commissioner Gerald Otten
Commissioner Terri Wehling
1. Call to Order
2. Roll Call
3. Approval of Minutes of March 25, 1996
4. Discussion Regarding Lease with Phoenix Manufacturing at City-Owned
Property at 7528 42nd Avenue (Improvement Project No. 474)
5. Resolution Authorizing Publication of Notice and Holding a Public Hearing
Regarding Sale of 6073 Louisiana Avenue North (Improvement Project No.
519)
6. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
Approved EDA Minutes March 25, 1996
Meeting #5
CALL TO ORDER President Erickson called the meeting of the Economic Development
Authority to order at 8:49 p.m.
ROLL CALL Present: Erickson, Enck, Otten, Norby, Wehling
Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald
APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner
Enck, to approve the EDA minutes of March 11, 1996. All present voted
in favor. Motion carried.
IMP. PROJECT 519 President Erickson introduced for discussion Item 4, Resolution Approving
Item4 Declaration of Covenants for 6073/6081 Louisiana Avenue North
(Improvement Project No. 519).
EDA RESOLUTION Commissioner Enck introduced the following resolution and moved its
96-05 adoption: "RESOLUTION APPROVING DECLARATION OF COVENANTS
FOR 6073/6081 LOUISIANA AVENUE NORTH (IMPROVEMENT PROJECT
NO. 519)." The motion for adoption of the foregoing resolution was
seconded by Commissioner Wehling, and upon vote being taken thereon
the following voted in favor thereof: Erickson, Otten, Enck, Wehling,
Norby; and the following voted against the same: 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 519 President Erickson introduced for discussion Item 5, Resolution Approving
Item 5 Plans and Specifications for Landscaping at 6073/6081 Louisiana Avenue
North (Improvement Project No. 519).
EDA RESOLUTION Commissioner Otten introduced the following resolution and moved its
96-06 adoption: "RESOLUTION APPROVING PLANS AND SPECIFICATIONS FOR
Item 5 LANDSCAPING AT 6073/6081 LOUISIANA AVENUE NORTH
{IMPROVEMENT PROJECT NO. 519)." The motion for adoption of the
foregoing resolution was seconded by Commissioner Wehling, and upon
vote being taken thereon the following voted in favor thereof: Erickson,
Otten, Enck, Wehling, Norby; and the following voted against the same:
None; Absent: None; whereupon the resolution was declared duly passed
and adopted, signed by the president which was attested to by the
executive director.
ADJOURNMENT Motion was made by Commissioner Wehling, seconded by Commissioner
Enck, to adjourn the meeting. All present voted in favor. The New Hope
EDA adjourned at 8:50 p.m.
Valerie Leone
City Clerk
New Hope EDA March 25, 1996
Page 1
EDA I
q)t.) REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
-96 .
Kirk McDonald Item No.
By: Management Assistant By: 4
DISCUSSION REGARDING LEASE WITH PHOEMX MANUFACTURING AT CITY-OWNED PROPERTY
AT 7528 42ND AVENUE (IMPROVEMENT PROJECT NO. 474)
The existing lease between the EDA and Phoenix Manufacturing Corporation for the City-owned building at
7528 42nd Avenue expired on 12/31/95 and has been extended on a month-by-month basis since the beginning
of the year, per the terms of the lease. As you will recall, the EDA entered into the lease with Phoenix for the
same terms as the EDA had with Foremost, Inc. The lease rental rate from April-December 1995 was $20,020
or the amount of the 1995 real estate taxes. Under the existing lease, Phoenix is required to pay all building
operating expenses (insurance, maintenance, utilities) and to correct any substandard building conditions.
The City informed Phoenix if that they wanted to remain in the building subsequent to 12/31/95, that they would
need to pay market rental rates for industrial buildings. The City acquired information from the Ackerberg
Group stating that current lease rates for industrial property were approximately $3.50 per square foot for
warehouse space and $6.50 per square foot for office space. These rates applied to the old Foremost building
calculate as follows:
Office Space = 1,600 sq. ft. x $6.50 psf = $10,400
Warehouse Space = 19,195 sq. ft. x $3.50 psf = $67,182
TOTAL PER YEAR = $77,582 + 12 = TOTAL PER MONTH $6,465.16
The City shared these rates with Phoenix and Phoenix responded with the attached 2/5/96 correspondence
proposing an annual rental rate of $15,000 - $25,000 (plus payment of real estate taxes). Staff does not feel that
this proposal is acceptable. Taking into consideration the condition of the building, staff lowered the market rate
rent from $77,582 to $50,000 per year and sent Phoenix the enclosed lease, which Phoenix has not accepted.
As a result of not reaching an agreement on the lease, the City has served Phoenix with a notice to vacate the
building effective 5/1/96 if we cannot come to an agreement on the lease. If an agreement is not reached and
if Phoenix does not vacate the building on May 1, the City will be forced to bring an Unlawful Detainer action
to remove them from the property.
Staff requests to discuss this matter with the EDA.
MOTION BY SECOND BY
Review: Administration: Finance:
RFA-O01 ~
CORRICK & SONDRALL, P.A. '
STEVENA. SONORALL ATTORNEYS AT LAW
M,CRAEI` R. l`^FL~UR Edinburgh Executive Office Plaza
MARTIN P. MALECHA
WILl. JAM C. STRAIT 8525 Edinbrook Crossing
Suite #203
Brooklyn Park, Minnesota 55443
TELEPHONE (612) 42,5-5671
FAX (612) 425-5867
April 3, 1996
Kirk McDonald
City of New Hope
4401Xylon Avenue North
New Hope, MN 55428
RE: Phoenix Lease
7528 42nd Ave. No.
Our File No: 99,11161
Dear Kirk:
Per your request, enclosed is a copy of the letter and lease
provided to Phoenix for the property at 7528 42nd Ave. f\k\a
Foremost [nc.
The lease term is through 12-31-96 with no option to renew. As you
know, Phoenix has not yet signed the lease and is currently
considered a "holdover" tenant under the terms of the prior lease.
We have provided Phoenix with a notice to vacate effective 5-1-96
if we cannot come to terms on a new lease. The only sticking point
is money. Ne have insisted on fair market rental value which
amounts to a $50,000.00 increase from last years rental rate.
Basically, Phoenix simply paid real estate taxes as rent last year.
This was a carry-over arrangement from our deal with Foremost. That
arrangement expired last year, however, Phoenix apparently wasn't
ready for the change.
If we don't reach an agreement and they don't vacate on May lrst we
will be forced to bring an Unlawful Detainer action to remove them
from the property. Zt's my understanding this matter will be
discussed with the EDA at its April 8, 1996 meeting. Please contact
me if you have any other questions or comments.
~Vrer'y ~__9_,,1~ yours,
! (~ ~,: _
S~even A. Sondrall
zlt
M~rch 29, 1996
Phoenix Manufacturing Corporation
7528 42nd Avenue North
New Hope, MN 55428
RE: 7528 42nd Avenue North
New Hope
Dear Phoenix Manufacturing Corporation:
This letter is your notice of the termination of your- tenancy of
the above-referenced property, and your notice to vacate the same
by the end of the day of April 30, 1996.
Si ncerel y,
~. ,/~?..-
6~J~-. J./ Er ~ ckson
President,
Economic Development Authority in and
for the City of New Hope
March 5, 1996
Mr. Thomas M. Giebel
Mr. Frank J. Potocnik
Phoenix Engineering Corporation
6995 55th Street North
Oakdale, MN 55128
RE: 7528 42nd Avenue North New Hope, Minnesota
Our File No. 99.11161
Dear Messrs. Giebel and Potocnik:
Enclosed please find three copies of a Lease for the above-
referenced property. The Lease calls for rent_at a =ateof $50,000
annually, plus payment of real estate taxes.
Please return two signed copies to me within 10 days of the date of
this letter.
Sincerely,
Martin P. Malecha
Assistant City Attorney
m3t
cc: Daniel J. Donahue, Executive Director
Kirk McDonald, Management Assistant (w/enc)
Steven A. Sondrall, City Attorney
LEASE
THIS LEASE is made this day of March, 1996, by and
between the Economic Development Authority in and for the City of
New Hope (hereinafter "Lessor"), and Phoenix Manufacturing
Corporation, a Minnesota corporation (hereinafter "Lessee"). The
Lessor and the Lessee, used collectively herein, may be hereinafter
called the "Parties"
IT IS HEREBY AGREED, in consideration of the mutual covenants
and promises herein'
1. Leased Premises.
The Lessor, in consideration of the herein rents, covenants,
agreements, and stipulations to be paid, kept, and performed
by the Lessee does hereby lease and rent to the Lessee, and
The Lessee hereby agrees to lease, and to take, upon the
terms, and the conditions, hereinafter set forth, certain real
property, consisting of a Building, hereinafter called the
"Building", and Land, hereinafter called the "Land", known as
7528 42nd Avenue North in the City of New Hope, in the County
of Hennepin, in the State of Minnesota, and legally described
as follows'
See attached Exhibit A,
hereinafter called the "Leased Premises"
2. Base Rent.
The Lessee agrees to pay the Lessor, beginning on the
commencement date of the Term, as hereinafter defined in
Paragraph 4, entitled "Term", of this Lease, a Base Rent,
hereinafter called "Base Rent", of Forty-Five Thousand Eight
Hundred Thirty Three and 37/100ths Dollars ($45,833.37).
Said Base Rent shall be paid as follows: (i) Eight Thousand
Three Hundred Thirty-Three and 34/lOOths Dollars ($8,333.34)
representing the Base Rent for the months of February and
March, 1996, will be paid upon execution hereof; and (ii) the
remaining amount will be paid in nine equal monthly payments
of Four Thousand One Hundred Sixty-six and 67/lOOths Dollars
($4,166.67) each (the "Monthly Payments'") on the first day of
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April, 1996, and the first day of each succeeding month until
and through December, 1996.
3. A__d_d i t_ t_o n__a 1. Rent.
Wherever it is provided in this Lease that the Lessee
required to make payment to the Lessor, such payment shall be
deemed to be Additional Rent. Alt remedies applicable to the
nonpayment of rent shall be applicable to nonpayment of
additiona] rent.
Notwithstanding the foregoing, such Additional Rent shall not
be deemed to be Sase Rent.
Term.
The Term of this Lease shall commence February 1, 1996, and
terminate at midnight, December 31, 1996.
It is understood and agreed Lessee shall have no option to
renew this Lease.
5. Current Condition.
The Lessee acknowledges that the Lessee has had ample
opportunity to inspect the condition of the Leased Premises.
The Lessee takes the same in its present condition, "AS IS".
Lessee agrees that Lessor shall not be obligated to make any
repairs to the building at any time during the lease term.
6. Future Upkeep.
The Lessor shall have no responsibility for any maintenance,
repairs, or replacements to the Leased Premises, except only
as specified in Paragraph 12, entitled "Damage or Destruction
of Premises", and in Paragraph 19, entitled "Condemnation"
7. Maintenance and Repairs by Lessee.
Other than as provided in Paragraph 12, entitled "Damage or
Destruction of Premises", and in Paragraph 19, entitled
"Condemnation", the Lessee agrees, at its own expense, to keep
and maintain the Leased Premises.
This shall include, without limiting the generality of the
foregoing: foundations, structural components, walls, roofs,
HVAC systems, plumbing systems, electrical systems, floors,
exterior and interior doors, windows, and glass, all other
components of the building, driveways, walkways, and parking
areas. It is understood Lessee is under no obligation to make
any repairs but Lessee agrees it is not entitled to any rent
abatement for repairs'made pursuant to this paragraph.
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8. Utilities.
The Lessee shall pay by their due date, and shall hold the
Lessor free and harmless from, all bills or assessments for
lights, heat, water, gas, electrical, sewer rentals or
charges, and any other expenses arising out of, or incidental
to, the occupancy of said Leased Premises by Phoenix
Manufacturing Corporation through the term of this lease.
9. Taxes and Assessments.
The Lessee shall pay all real estate taxes and special
assessments due and payable against the Leased Premises for
the calendar year 1996. Lessor makes no representations as to
the amount of taxes which will be due and payable in 1996,
other than that said taxes shall be non-homestead. Lessee
acknowledges that the real estate taxes due and payable in
1996 for the Leased Premises have not yet been established by
the Hennepin County Assessor, and said taxes may be as high as
100% of the real estate taxes for like commercial real estate
owned by a non-exempt entity. Payment of said taxes and
assessments shall be by Lessee making payment to Lessor as
follows, with each taxes and assessment payment due at same
time as the Base Rent for the designated month: 25% of the
annual taxes and assessments in each of April and May; 10% of
the annual taxes and assessments in each of June, July,
August, September, and October; and 0% in each of November and
December. Lessor shall submit the taxes and assessment
payments to the Hennepin County Treasurer for payment of the
taxes and assessments against the Leased Premises when the
same become due, except that Lessor shall have no obligation
to submit the taxes and assessment payments to Hennepin County
until Lessee has paid the same in an amount then due and owing
to Hennepin County, including any late penalty and interest,
to Lessor. If any late penalty or interest accrues due to
Lessee's failure to make timely taxes and assessment payments
to Lessor, Lessee shall pay said penalty and interest to
Lessor immediately upon demand by Lessor.
10. Lessee's Improvements.
(a) Lessee's Options.
The Lessee, during the full Term of this Lease, shall have the
right, at any time, and from time to time, at its own, and
sole, expense and liability to place, or to install, within
the Building such leasehold improvements as the Lessee shall
desire.
(b) Ownership Upon Termination.
All such leasehold improvements made by the Lessee shall be,
3
and shall remain, the property of the Lessee. Such leasehold
improvements may be removed by the Lessee, at the Lessee's own
expense.
(c) Required Approvals.
The Lessee shall first obtain the prior written consent of the
Lessor for improvements involving structural changes or
external appearance changes, including signs, or if the
estimated cost of improvements shall exceed Ten Thousand
Dollars ($10,000.00).
(d) Standards.
No such installation or construction shall violate any lawful
rule or regulation, plat, or zoning regulation, or other law,
ordinance, or regulation applicable thereto. All shall be done
and performed in a good and workmanlike manner.
(e) Costs.
All costs of any such improvements shall be paid by the
Lessee. The Lessee shall allow no liens for labor or materials
to attach to the Leased Premises by virtue thereof.
11. Insurance.
The Lessee agrees to pay all of the premiums required during
the Term hereof, to provide, and to keep in force, the
following insurance coverage.
(a) Nature of Coverage.
Commercial general liability insurance, providing coverage on
an "occurrence" rather than a "claims made" basis, which
policy shall include coverage for bodily injury, property
damage, personal injury, contractual liability and independent
contractors, with combined policy limits of not less than Two
Million Dollars ($2,000,000), for injury or death in any one
accident or occurrence, including property damage, insuring
the Lessor and the Lessee.
(b) Cancellation and Modification.
All such policies-shall provide against cancellation or
material modification, except after thirty (30) days written
notice to the Lessee, and the Lessor.
(c) Commencement and Payment.
All policies provided hereunder shall be obtained by the
Lessee prior to the commencement of the Term hereof. Payments
4
of premiums shall be made by the Lessee.
(d) Increased Risk.
The Lessee shall not carry any stock of goods, nor do anything
in, or about, the Leased Premises which will impair, or
invalidate, the obligation of any policy of insurance on, or
in reference to, the Leased Premises.
12. Damage or Destruction of Premises.
If the Leased Premises are totally or partially destroyed by
storm, fire, lightning, earthquake, or other casualty, this
Lease.shall be terminated and Lessee shall have no further
rights hereunder. Lessor shall have no obligation to restore
the premises. There shall be no rent abatement for any
prepaid rent paid by Lessee,
13. Abatement.
The Lessee's obligations to pay rent, including Base Rent and
Additional Rent, and to perform all of the other covenants and
agreements which the Lessee is bound to perform under the
terms of this Lease shall not terminate, abate, or be
diminished during the period that the Leased Premises, or any
part thereof, are untenantable, regardless of the cause of
such untenantability, it being the intent of the Parties that
this is a risk insured against by Lessee.
If untenantability continues beyond 30 days, Base Rent and
Additional Rent shall abate proportionately to the area of the
Leased Premises that are untenantable.
14. Comp]lance with Laws.
The Lessee, in the use and the occupancy of the Leased
Premises, and in the conduct of the Lessee's business and
activities, sha]l, at its own cost and expense, secure and
maintain all necessary licenses and permits required for the
conduct of its business and activities.
The Lessee shall, at all times, comply with all laws and
ordinances, all ]awful rules and regulations issued by any
legally constituted authority, and with the applicable orders,
regu]ations, and requirements of any board of fire
underwriters, making any modifications to the Leased Premises
required thereby.
15. Use.
Because the Lessor and the Lessee have negotiated a specific
rate of Base Rent, in reliance upon a particular use of the
5
Leased Premises, the Leased Premises may only be used for
sheet metal fabrication or purposes incidental thereto and for
no other purpose.
1 6. Wast e.
The Lessee agrees not to do, nor to suffer, any waste to, or
upon, the Leased Premises.
17. Liens.
(a) Liens.
The Lessee agrees not to cause, suffer, nor permit any liens
to attach to, or to exist against, the Leased Premises, by
reason of any act or omission of the Lessee,. or persons
claiming through the Lessee, by reason of the Lessee's failure
to perform any act required of the Lessee hereunder.
(b) Illegal Actions.
The Lessee shall not permit the Leased Premises to be used for
any illegal purpose.
(c) Lessee's Release from Obligation.
However, the Lessee shall not be required to pay, or to
discharge, any lien against the Leased Premises, so long as
(1) The Lessee has given the Lessor notice of the
Lessee's intent to contest such lien, and
(2) The Lessee is in good faith in contesting the
validity or amount thereof, and
(3) The Lessee has given to the Lessor such security as
the Lessor has reasonably requested to assure
payment of such lien and to prevent the sale,
foreclosure, or forfeiture of the Leased Premises
by reason of nonpayment.
(d) Satisfaction and Release.
On final determination of the lien, or claim of lien, the
Lessee will immediately pay any judgment rendered and all
costs and charges. The Lessee shall cause the lien to be
re]eased or satisfied.
(e) Easements and Prescriptive Rights.
The Lessee will not use, or permit the use of, the Leased
Premises in any manner which would result, or would, with the
6
passage of time, result, in the creation of any easement or
Prescriptive right.
18. Lessor's Performance of Lessee's Duties.
(a) Lessee's Performance Default.
If the Lessee should default in the performance of any
covenant on the Lessee's part to be performed by virtue of any
provision of this Lease, the Lessor may, after ten (10) days'
notice (or, in the case of emergencies, reasonable attempt at
prior notice), perform the same for the account of the
Lessee.
(b) Lessor's Authority.
The Lessee hereby authorizes the Lessor to come upon the
Leased Premises for such purposes and, while on the Leased
Premises, to do all things reasonably necessary to accomplish
the correction of such default.
(c) Lessor's Expenditures.
If the Lessor, at any time, is compelled to pay, or elects to
pay, any sum of money, by reason of the failure of the Lessee,
after ten (lO) days' notice, to comply with any provision of
this Lease, or if the Lessor is compelled to incur any
expense, including reasonable attorney's fees, in instituting,
prosecuting, or defending any action or proceeding instituted
by reason of any default of the Lessee hereunder, the sum or
sums so paid by the Lessor with all interest costs and
damages, shall be deemed to be Additional Rent hereunder.
(d) Lessee's Reimbursement.
The total of these, together with interest thereon, at the
rate of eight percent (8%) per annum, shall be due from the
Lessee to the Lessor on the first day of the month following
the incurring of such respective expense, except as otherwise
herein provided.
19. Oondemnation.
(a) Termination of Lease.
In the event all of the Leased Premises, or such portion
thereof as will make the Leased Premises unusable for the
purposes of the Lessee, be condemned by any legally
constituted authority, for any public use or purpose, then in
either of said events, the Term hereby granted shall cease, at
the option of either the Lessor or the Lessee, upon thirty
(30) days' written notice, from the time when possession
7
thereof is taken by said public authorities. Rent shall be
due and payable only for the period of the Term prior to said
condemnation.
(b) Recovery.
Such termination, however, shall be without prejudice to the
rights of either the Lessor or the Lessee, or both, to recover
compensation and damage caused by the condemnation from the
condemnor, except:
(1) Leasehold Value.
The Lessee shall have no rights for the value of its
leasehold.
(2) Other Parties.
Neither the Lessee nor the Lessor shall have any rights
in any separate award made to the other Party by the
6ondemnor.
(c) Partial Condemnation.
In the event less than all of the Leased Premises are taken or
condemned for a public or quasi-public use, and the portion of
the Leased Premises not taken may be reasonably suitable for
the purposes of the Lessee by repair or restoration, this
Lease will not terminate.
(d) Lessor's Repair and Restoration.
The Lessor shall, in such event, promptly commence, and
diligently complete, the repair and restoration of the Leased
Premises, so that, upon completion, the Leased Premises will
constitute a complete architectural unit, with an appearance,
character, and commercial value as nearly as possible equal to
the value of the Leased Premises immediately prior to the
taking. However, the Lessor shall have no obligation to make
such .repair and restoration if the estimated cost of such
exceeds the condemnation proceeds received by the Lessor.
(e) Rent Abatement.
There shall be an abatement of annual Base Rent and Additional
Rent after such taking, which shall be equal to the percentage
of total area of Leased Premises after the taking, as relates
to the total area of the Leased Premises immediately prior to
said taking thereunder, to the termination of this lease.
8
20. essor Indemnified.
The Lessee agrees to indemnify, and save harmless, the Lessor
against, and from any and all, claims including all costs and
reasonable and necessary attorney's fees, Lessor incurs
defending claims brought by, and on behalf of, any persons,
firms, or corporations, arising from the conduct or management
of, from any work or thing w;~atsoever done by, or on behalf
of, the Lessee in or about, or from the Lessee's activities
upon, or occupancy of, the Leased Premises during the Term of
this Lease. This shall include claims or damages arising from
any breach or default on the part of the Lessee in the
performance of any covenant or agreement of this Lease, or
from any act or negligence of the Lessee, or any of its
agents, contractors, servants, employees, licensees, or
invitees, or arising from any accident, injury, or damage
whatsoever caused to any person, firm, or corporation,
occurring during the Term of this Lease.
This indemnification and hold harmless clause shall not apply
to any claims for damages caused by the Lessor's own
negligence or by any agent, employee or any other person
acting either directly or indirectly on the Lessor's behalf.
21. Inspection of Premises.
The Lessee agrees to permit the Lessor and the Lessor's
agents, to come upon, and to inspect, the Leased Premises, at
all reasonable times.
The Lessee further agrees to permit the Lessor and the
Lessor's agents, to come upon the Leased Premises if necessary
to perform any act which the Lessee has failed to perform, as
provided elsewhere in this Lease.
22. Default.
(a) Definition.
If one or more of the following events, hereinbefore, and
hereinafter, called "Default", shall happen, and be continuing
for ten days after written notice has been given to Lessee, a
condition of Default, herein referred to as "Default'", shall
exist, namely:
(1) Untimely Payment.
Default shall be made in the punctual payment of any rent
herein agreed to be paid, and such Default shall continue
for a period of ten (10) days after written notice is
given by the Lessor to the Lessee of such Default;
(2) Assignment.
The Lessee makes an assignment for the benefit of
creditors;
(3) Bankruptcy or Credit Relief.
The Lessee files a petition in bankruptcy, prays for
relief under the Federal Bankruptcy Law, or makes an
assignment for the benefit of creditors;
(4) Attachment or Execution.
An attachment or execution is levied upon the Lessee's
property in, or interest under, this Lease, which is not
satisfied or released, nor the enforcement thereof stayed
or superseded by an appropriate proceeding within thirty
(30) days thereafter;
(5) Involuntary Bankruptcy or Reorganization.
An involuntary petition in bankruptcy, or for
reorganization or arrangement under the Federal
Bankruptcy Law is filed against the Lessee, and such
involuntary petition is not withdrawn, dismissed, stayed,
or discharged within sixty (60) days from the filing
hereof;
(6) Receiver or Trustee.
A Receiver or a Trustee is appointed for the property of
the Lessee, or of the Lessee's business or assets, and
the order or decree appointing such Receiver or Trustee
shall have remained in force undischarged or unstayed for
thirty (30) days after the entry of such order or decree;
(7) Abandoned Premises or Failure to Open.
The Lessee shall abandon the Leased Premises;
(8) Continued Failure.
The Lessee shall fail to perform or observe any other
covenant, agreement, or condition to be performed or kept
by the Lessee under the terms and provisions of this
Lease, and such failure shall continue for ten (10) days
after written notice thereof has been given to the Lessee
by the Lessor unless the Lessee shall have commenced
corrective action within such ten (10) days, and
thereafter diligently completes the same;
10
(g) Ch~DEE in Ownership__~_~e~E.
The sale or other transfer of controlling interest tn
Lessee to persons other than those owning a contro]]ing
~nterest in the stock of Lessee as of the beginning of
this Lease Term, or the sale or other transfer of a
substantia] portion of the assets of Lessee may, at the
so]e option of the essor, be the basis for termination
of this Lease
b) OptirOna] Actions.
In the event such condit on of Default shall exist, then, and
in any such event, the Lessor shall have the right, at the
option of'the Lessor, then, or at any time thereafter, while
such Defau]t or Defau]ts sha]] continue, to elect either of
the fol]owing actions-
(1) Cure Default.
To cure such Defau]t or Defau]ts at the Lessor's own
expense, without prejudice to any other remedies which
the Lessor might otherwise have, any payment made, or
expenses incurred by the Lessor in curing such default,
with interest thereon at eight percent (8~) per annum to
be, and to become, Additional Rent, to be paid by the
Lessee, with the next installation of rent fal]ing due
thereafter, or
(2) Re-entrance.
To re-enter the Leased Premises, without notice,
dispossess the Lessee, and anyone claiming under the
Lessee, by summary proceedings or otherwise, remove their
effects, take complete possession of the Leased Premises,
and elect to take either of the following actions-
(A) Terminate Lease.
To declare this Lease forfeited and the Term ended,
or
(B) Continue Lease with Reservations.
To elect to continue this Lease in full force and
effect, but with the right, at any time thereafter,
to declare this Lease forfeited and the Term ended.
~n such re-entry, the Lessor may remove a]] persons from
the Leased Premises. The Lessee hereby covenants, in such
event, for the Lessee, and al] others occupying the
Leased Premises under the Lessee, to peacefully yield up
11
and surrender the Leased Premises to the Lessor.
(c) Recg_.v_ery Upon Forfeit.
Should the Lessor dectare this Lease forfeited, and the Term
ended, the Lessor shall be entitled to recover from the Lessee
the following amounts'
(1) Rent.
The rent and alt other sums due and owing by the Lessee
to the date of such termination;
(2) Oosts.
The costs of curing all of the Lessee's Defaults existing
at, or prior to, the date of termination; and
(3) Value.
The worth as of the termination of the Lease, in an
amount equal to the then value of the excess, if any, of
the aggregate of rent reserved in this Lease for the
balance of the Term, over the then agreed upon value of
the Leased Premises for the balance of the Term,
(d) Recovery Upon Conditional Continuation.
Should the Lessor, following Default as aforesaid, elect to
continue this Lease in full force, the Lessor shall use its
best efforts to rent the Leased Premises on the best terms
available for the remainder of the Term hereof, or for such
longer or shorter period as the Lessor shall deem advisable.
The Lessee shall remain liable for payment of all rentals and
other charges and costs imposed on the Lessee herein, in the
amounts, at the time, and upon the conditions as herein
provided. However, the Lessor shall credit against such
liability of the Lessee all amounts received by the Lessor
from such reletting, after first reimbursing the Lessor for
all costs incurred in curing the Lessee's Defaults, in
re-entering, preparing, and refinishing the premises for
reletting, and in reletting the Leased Premises.
(e) Written Notice Required.
No re-entry by the Lessor, nor any action brought by the
Lessor to remove the Lessee from the Leased Premises, shall
operate to terminate this Lease, unless the Lessor shall give
written notice of termination to the Lessee, in which event
the Lessee's liability shall be as above provided. No right or
remedy granted to the Lessor herein is intended to be
12
exclusive of any other r~ght or remedy hereunder, or now or
hereafter, existing in ]aw or in equity or by statute.
(f) Lessee's Waiver.
In the event of termination of this Lease, the Lessee waives
any and a]l rights to redeem the Leased Premises, either given
by any statute now in effect, or hereinafter enacted.
(g) Holdin§ Over.
Any holding over by the Lessee after the termination of this
Lease shall create a tenancy from month to month, on the same
terms and conditions, and at the same rent as herein provided
applicable during the Term hereof. The same rent is defined
as $50,000.00 divided by 12 months or $4,166.67 per month.
23. Interest.
All payments required to be paid by the Lessee under the
provisions of this Lease shall bear interest at a rate of
either of the following rates in the following circumstances:
(a) Corporate.
The highest rate allowed by Minnesota Statutes Section 334.011
for a loan for business purposes, if the Lessee is a
corporation: or
(b) Noncorporat e.
The highest rate allowed by Minnesota Statutes Section
334.011, if the Lessee is other than a corporation.
Interest shall begin to accrue five (5) days after the due
date of each payment, and shall continue until the date
actually paid by the Lessee
24. Late Fee.
The Lessee hereby agrees that, in addition to interest and all
other amounts due the Lessor hereunder, the Lessee will pay to
the Lessor a late fee, herein referred to as a "late fee",
equal to five percent (5%) of any payment which has not been
paid within five (5) days after its due date, without notice
or demand.
25. Condition of Premises Upon Termination.
Upon termination of this Lease, for any reason, the Lessee
covenants and agrees to remove all of the Lessee's personal
property, including, fixtures and equipment installed by the
13
Lessee upon the Leased Premises. The Lessee shall have no
obli9at~on to repair any damage caused by the removal hereof
if done at or near the expiration of the full term of this
Lease. If this Lease terminates prior to the expiration of
the full term of this Lease, Lessee agrees that it shall leave
the Leased Premises in as 9ood and clean condition as at the
commencement of this Lease, excepting normal and reasonable
wear and tear and usage.
26. Successors and Assi§ns.
The obligations and responsibilities herein shall be binding
upon, and the rights and benefits herein shall inure to, the
successors and assigns of the Parties hereto. However, the
liabilities of any successor to the interest of the Lessor
hereunder shall be limited to the performance of those
obligations which arise and accrue during the period of
ownership of the Leased premises by any such successor.
27. Notice.
(a) Delivery.
Any notices or inquiries regarding this Lease shall be
delivered:
To the Lessor:
Daniel J. Donahue
Executive Director
EDA in and for the City of New Hope
4401Xylon Avenue
New Hope, MN 55428
To the Lessee:
Thomas Giebel, President
Phoenix Manufacturing Corporation
7528 42nd Avenue North
New Hope, MN 55428
or to such other addresses as the Parties may designate, in
writing.
(b) Oe]ivery.
Notice may be given by registered or certified mail, return
receipt requested. In those circumstances, the date of service
shall be the date on which notice is deposited in a United
States Post Office, properly stamped and addressed. In all
other methods of mailing, notice shall be deemed to be served
when received.
14
28. Oral AaE_eement.s.
It Js expressly agreed between the Lessor and the Lessee that
there is no verbal understanding or agreement which Jn any way
changes the terms, covenants, and conditions herein set forth.
It is also expressly agreed between the Lessor and the Lessee
that no modification of this Lease, and no waiver of any of
its terms and conditions, shall be effective'unless made
writing and duly executed by the authorized officers of the
necessary Party or Parties.
29. Waiver.
The failure of the Lessor or of the Lessee to insist, in one
or more instances, upon the strict performance of the Lessee
or of the Lessor of any of the provisions of this Lease shall
not be construed as a waiver of any future breach of such
provisions.
Receipt by the Lessor of rent, with the knowledge of the
breach of any provisions hereof, shall not be deemed a waiver
of such breach.
30. Warranties of Lessee.
The Lessee warrants to, and for the benefit of, any mortgagee
of the Leased Premises that, as of the date of execution of
this Lease, it neither has, nor claims, any defense to this
Lease, nor any offset against the rentals payable or other
obligations required of the Lessee hereunder.
The Lessee further warrants that it has not paid any rental in
advance for a period of more than one (1) month, and covenants
that it will not, without such mortgagee's written consent, at
any time during the Term hereof, prepay any rental for a
period longer than one (1) month·
31 · Carding.
The Lessor may card the Leased Premises "For Rent" or "For
Sale" ninety (90) days before the termination of this Lease.
The Lessor may enter the Leased Premises at reasonable hours
to exhibit same to prospective purchasers, tenants, and
mortgagees, to make repairs required of the Lessor under the
terms hereof, or to make repairs to the Lessor's adjoining
property.
32. Landlord and Tenant.
This contract shall create the relationship of landlord and
tenant between the Lessor and the Lessee. No estate shall Pass
15
out of the Lessor.
33. Time of Essence.
Time is of the essence for all provisions of this Lease.
34. Lessor's Consent.
In all matters referred to in this Lease, where the Lessor's
consent or approval is required, the Lessor agrees that the
Lessor wi]] not unreasonably withhold its consent or approval.
35. Legal Expense.
The Lessee covenants and agrees to pay, and to indemnify the
Lessor against, all reasonable legal costs and charges,
inc]uding attorney's fee, lawfully and reasonably incurred in
obtaining possession of the Leased Premises after Default by
the Lessee, or upon expiration or earlier termination of the
Term of this Lease, or in enforcing any covenant or agreement
of the Lessee herein contained.
The Lessor covenants and agrees to pay all reasonable legal
costs and charges, including attorney's fees, lawfully and
reasonably incurred in enforcing any covenant or agreement of
the Lessor herein contained.
36. Title of Lessor.
The Lessor expressly covenants and agrees that Lessor is the
owner of the fee simple title to the Lease Premises.
The Lessor further covenants that the Lessee, on paying the
rent, and upon observing and performing all other terms and
conditions contained in this Lease, shall have quiet and
peaceful possession thereof.
37. Waiver of Certain Claims.
The Lessor and the Lessee hereby waive any claims which may
arise in the Lessor's or the Lessee's favor against the other
Party hereto during the Term of this Lease, or any renewal or
extension thereof, for any loss .or damage to any of the
Lessor's or the Lessee's property located within, upon, or
constituting a part of the Leased Premises hereunder, which
loss or damage is covered by a valid and collectible fire and
extended coverage insurance policy or policies, to the extent
that such loss or damage is recoverable under said insurance
or policies.
The Lessor and the Lessee further agree to notify the Lessor's
and the Lessee's own insurance company or companies, which
16
have issued, or will issue, to the Lessor and to the Lessee,
fire and extended insurance policies for the Leased Premises,
or anything located therein, and to have said policies
properly endorsed, if necessary, to prevent the invalidation
of said insurance coverage by reason of this mutual waiver.
The Lessee shall keep in force, at all times, adequate
coverage of its fixtures, personal property, and other
"contents" located upon the Leased Premises.
38. Governing Law.
This Lease shall be performed, construed, and enforced in
accordance with the laws of the State of Minnesota.
39. Captions.
The captions used in this Lease are for convenience only, and
shall not have any bearing or meaning with respect to the
content or context of this Instrument.
40. Holding Over.
If the Lessee remains in possession of the Leased Premises
after expiration of the Term hereof, with the Lessor's
acquiescence, and without any express agreement of the
Parties, the Lessee shall be a tenant at will at the then
rent.
There shall be no renewal by operation, or by law, of this
Lease.
41. Cumulative Rights.
All rights, powers., and privileges conferred hereunder upon
the Parties shall be cumulative but not restricted to those
given by law.
42. Memorandum of Lease.
The Lessor hereby agrees, at the Lessor's sole cost, to
prepare and record a Memorandum of Lease at the location where
the deed of title to the Leased Premises is of record. The
recording of the Memorandum of Lease shall be done on, or
before, the date 20 days after this Lease is fully executed.
Number and Gender.
Wherever appropriate to the sense of this Lease, the singular
number shall include the Plural, and vice versa.
Wherever appropriate to the sense of this Lease, the masculine
17
pronoun shall include the feminine and the neuter, the
feminine shall include the masculine and the neuter, and the
neuter shall include the masculine and the feminine.
44. Severability.
If any part, or portion, of this Lease shall be adjudicated by
a court of competent jurisdiction to be unlawful, this Lease
shall remain in effect, and in force, as if that part, or
portion, were no longer a part of this Lease.
45. Hazardous Substances. Lessee shall not (either with or
without negligence) cause or permit the escape or release of
any biologically or chemically active or other hazardous
substances or materials on the Leased Premises. Lessee shall
not allow the storage or use of such substances or materials
in any manner not sanctioned by law or by 'the highest
standards prevailing in the industry for the storage and use
of such substances or materials, nor allow to be brought into
the Leased Premises any such materials or substances except to
use in the ordinary course of Lessee's business. Without
limitation, hazardous substances and materials shall include
those described in the Comprehensive Environmental Response
Compensation and Liability Act of 1980, as amended, 42 U.S.C.
Section 9601 et. seq., and applicable state or local laws and
the regulations adopted under these acts. If any governmental
agency shall ever require testing to ascertain whether or not
there has been any release or hazardous materials related
solely to Lessee's occupancy of and activities on the Leased
Premises, then the reasonable costs thereof shall be
reimbursed by Lessee to Lessor upon demand as additional
charges if such requirement applies to the Leased Premises.
In all events, Lessee shall indemnify Lessor in the manner
provided in paragraph 20 from any release of hazardous
materials on the Leased Premises caused or permitted by Lessee
and occurring while Lessee is in possession, or elsewhere if
caused by Lessee or persons acting under Lessee. The within
covenants shall survive the expiration or earlier termination
of the Lease term. This provision shall not apply to any
release of hazardous substances specifically related to the
9round and soil water contamination already documented at the
adjacent property formerly known as Electronic Industries.
46. Lessee's Reclamation Right. Lessee and Lessor agree that upon
the satisfaction of the terms of this lease and at the time
the facility at 7528 North 42nd Avenue is vacated by the
Lessee, the Lessee will be granted reclamation rights to all
fixtures, leasehold improvements and internal structures in
the facility. Since the EDA intends to raze the facility upon
the expiration of this lease, the EDA also grants unto the
Lessee the right to reclaim structural materials subject to
the following conditions: 1') The Lessee must submit and EDA
18
must accept a written proposal specifying how the site will be
modified. The plan will include a schedule for completion and
the name(s) of contractors responsible for performing the
work, and 2) how the site will be rendered upon completion of
the reclamation process. Lessee agrees its reclamation right
will not increase Lessor's cost to raze the buildin9 and
Lessee further agrees to pay Lessor any additional costs to
raze the building occasioned by Lessee's exercise of this
reclamation right as mutually determined between the parties.
47. Lessor's Representations Re§ardin§ Hazardous Substances.
Lessor represents to Lessee that Lessor is not aware of any
hazardous substances on the Leased Premises.
Lessor represents and warrants-
(a) That there are no past or present investigations,
administrative proceedings, notices of violation or other
civil or criminal action threatened or pending allegin9
non-compliance with or violation of any statutes,
regulations or ordinances relating to any environmental
permits, release or discharge of any hazardous substances
or ~ollutants or contaminants on or related to the Leased
Premises.
(b) That Lessor has not violated any statute, regulation or
ordinance relatin9 to any environmental permit or the
release of any hazardous substance, pollutant or
contaminant on or related to the Leased Premises.
(c) That the Leased Premises are not listed in the National
Priorities List maintained by the United States
Environmental Protection Agency, or any other comparable
list maintained by any other federal, state or local
age, 'y.
IN WITNESS WHEREOF, the Parties hereto have caused this
Instrument to be duly executed as of the day and year first above
written.
LESSEE: PHOENIX MANUFACTURING
CORPORATION
by by
Its Its
19
LESSOR' ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR CITY OF
NEW HOPE
by by
Edward d. Erickson, Daniel J. Donahue
Its President Its Executive Director
c: \ N p51 \chh\ p hoe n.ix.
2O
EXHIBIT A
That part of Lot 5, "Auditor's Subdivision Number 324,
Hennepin County, Minnesota" uescribed as follows: Commencing
at a point on the North line of Rockford Road distant 195.0
feet Westerly of the East line of said Lot 5; thence North
parallel with the East line of said Lot 5 a distance of 350.0
feet; thence West parallel with the North line of Rockford
Road a distance of 125.4 feet, more or less, to a point 48.95
feet East of the West line of said Lot 5, as measured at right
angles thereto; thence South parallel with the West line of
said Lot 5 a distance of 350.0 feet to the North line of
Rockford Road; thence Easterly along the North line of
Rockford Road a distance of 125.1 feet, more or' less to the
point of beginning.
February 5, 1996
Mr. Steve $ondrall, City Attorney
City o£New Hope
Dear Mr. Sondrall:
In response to the recent meeting between representatives of the City of New I lope and Phoenix
Manufacturing Corporatio., we he,'eby submil ~o you Ibc Followhtg items ofco,~sidcration with
respect to your request to re-negotiate out' current ,nonth-to-,mmth lease of PMC's lhcililics
located at 7525 42nd Average North:
1. Due Io the age and present condition of thc lhcility, the property would not be
, cm~sidered u class Am' class II rental space, but probably mom appropriately a
class C space. Thorpc's (Ackcrburg Group??'!) analysis of rental space in that
area does not appear to take this into consideration. Additionally, we accepted
occupancy inlo your building without regard 1o what our actual building
space rcquircmcnt's am due to th( preferable Icasc tcnns you wcrc granting at that
ii,nc. At 20,000 squa,'~ fcc(, wc presently havc moro spacc than what is really
nccess~y for operations of our present and projected size. Thus, square footage
basis of leasing would be to I'MC's disadvalttag¢.
2. PMC is a start-up entity. We presently am incurring lower sales with tighter
profit margins, as well as higher operating expenses during our start-up phase.
lhis is customary with any new business, not just in the sheet metal fabrication
industry. Accordingly, at the preliminary terms the City wa~ discussing, PMC
would have the potential to bo operating at a loss position due to the extremely
high increase of your preliminary rental rates.
3. PMC is occupying a building that could potcntiall~ otherwise vacant. With
tenant occupancy comes less polential for vandalis~io an unoccupieat building,
as well as a bona fide tenant taking c~e of tho buildh~g's basic maintenance and
heating...both of which am to the owner's benefit.
4. PMC is a new company that is ,mw currently employing 20 to 25 people. This in
lure transfuses moneys into your local ccvnomy through:
a. direct payroll
b.' material purchases and services received from local nlcrchants
c. mnpioyce consumer spending for such things as gas trod lunches
Phoenix Engineering Corporation
. Phone (612) 777-73'87. Fax (612} 777-2~S~
· 6995 Fill(y-Filth $*ree~ North · Oakdale, M~ncisota 55128 :
Mr. Steve Sondrall
Page 2
5. it appears that thc City of New i' lope warns Io Ireat this facility as a potential
profit center. If'such is the c~tsc, then the City ol'Ncw Hope also has to address
that they also need to be in tim hmdlc)rd business. Il'so, you should also
be addressing ti're aced to bc doing "laadlord" things such as:
a. catching up tm de~Crrcd maintenance (SEE ATt'ACHED LIST)
b. consideration o1' tenant le~se incentives and allowances
c. consideration of mnant construction of leasehold improvements
d. gencral upkeep/ongoing maintenance issues
6. It is our belier'that thc City of New t lope may want to approach this particular
parcel of real estate in a dil:Tcrent manner due to its historical problems relating to
the underlying environmental issues, the instability el" its former tenants and the
terms granted by ti"~e City to the past tenants located on or adjacent to this
building. Also, you snoutd I~ taking into consideration the manner in which
PMC has come to occupy this space.
We propose that the City look at this property as a brcakeven cost center with the
upside potential of developing into a modest profit center. Keeping in mind the
present lease terms at which we arc currently paying, we submit to you thc
following:
a. For any full or partially occupied year, PMC will guarantee
payment of the building's annual property taxes on behalf of thc
City.
b. As presently occurring, PMC will continue to pay all utilities oa
thc building relating to heating, electricity, etc.
c. In addition to Ihe abovc, wc prorn~se to pay to lhe city, 1% ofour
net sales as additional rant.,;; payable monthly. The monthly
payment will be based on the previous month's actual sales and
will bc "trued-up" on a qu,m:erly basis. This allows for FMC to
anticipate our basic rental costs and allows the City to participate
in our growth and profits without overburdening a young start-up
entity. Based on our preliminary projections, this would result in
additional annual rents ranging from $15,000 to $25,000.
Mr Steve Sondrall
Page ;3
As a~ altcrna~iv~ to using tl~ pcr3ze/ntag¢ sales method for
additiomtl rents, we :~ willing ~o fix tine additional rents at our
projected mid-pointer ~2(~0~0 an~all~ or SI ,667 per month.
]'his cfl~ctively woul~GGu~$~current rate we are paying.
d. Term of thc lease will be one y¢~ period retroactively effective
m of Janua~ 1, 1996 witl~ two tessee's option periods of one
year each. Notification by lessee in writing within 60 days
ac end of the lca~ tem~ ~ to whooper we will emend the Icrc
another year or not.
Please call me or Tom Gicbcl at 777-7787 to arrange a time to mutually mcct to further discuss
th~ lease terms for PMC. 'l~ank you for your attention to this matter.
Mr. Thomas M. G{~t~I
Chief Financial Officer President
Mr. Sieve Sondrall
* ATTACHMENT*
LIST OF DEFERRED MAINTENANCE ISSUES AT 'File PMC BUILDING:
ESTI MATIgD MINIMUM AMOUNT
DESCRIPTION TOTAL CO.RT OF "SHOULD DO'.s".
l. exterior painting $ 8,000 -0-
2. interior painting $10,000 -0-
3. roof repairs $ t 1.000 $6,000
4. hvac/heating repairs $ 4,000 $4,000
5. window replacement $1,000 $ 1,000
6. door/lock repair/replace $ 2,000 $ 2,000
7. parking lot blacktopping $ $,000 $ 4,000
$, plumbing/fixtures replace $ 1,000 $1,000
9. office renovation/upgrade $3,000 $3,000
10. contingency for other
unknown or lower
priority items $1,2_000 $ 5.000
TOTALS ~ ~
3100 West Lake S~'eet, Suite 100
Tel 612,824,2100
Fax 612.924--~t99
TIME
COPIES TO
FAX NUMBER
from ),
(612) 92~28 :
8ENDER'~ NUMBER
MESSAGE
~.~ ~_ ~ .,
TOTAL ~MBER OF ~NC~DIN~ ~OYE" SHEET
ORIGINAL TO FOLLOW WY gAlL YES ~
JJ-00i~ [ I I Jill ii [[ .. I .... I
~ T-kS 4~3d~t .~O. FT. AYAJI. kTY-EB
~ MM, mi
TOTAL P.05
MEMORANDUM
City of New Hope
TO: KIRK McDONALD STEVE SONDRALL
FROM: DOUG SANDSTAD
DATE: JANUARY 17, 1996
RE: STATUS OF PROPERTY- PHOENIX MFG. CO., 7528 42nd Ave. No.
I made a brief inspection of the older warehouse at this address, per your request. Dan
McGuire., General Manager, accompanied me (533-0793). The property and building are in a
general condition I would characterize as "minimal maintenance". In many ways, the building
is nonconforming and the use exceeds the capacity of the site, a condition that dates back more
than two decades. Specific observations include:
* Paint is lacking throughout the building interior and exterior
* Parking lot may need repair and striping (snow covered).
* Roof Leaks at rear (see attachment '~4'~)
* Office heating system not working right
* A few plumbing fixtures are in disrepair.
* A couple of windows are broken.
* EXIT sign bulbs need replacement/repair
* Fire Inspector will advise tenant on need for portable fire extinguishers.
No structural problems were observed.
cc: Brett Riewe
~,~,~(~,~~.,~~0!~t EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
-8-96 Sarah Bellefuil Item No.
By: Community Development Specialist By: 5
RESOLUTION AUTHORIZING PUBLICATION OF NOTICE AND HOLDING OF A PUBLIC
HEARING REGARDING SALE OF 6073 LOUISIANA AVENUE NORTH (IMPROVEMENT
PROJECT #519)
City staff have found a buyer, Scott and Michelle Abbott, for the southern unit of the handicap
accessible twin home being built at 6073/6081 Louisiana Avenue North. A Purchase Agreement has
been executed, subject to the approval of the EDA. By law, a public hearing regarding the sale must
be held with at least 10 days published notice. The attached resolution authorizes the public hearing
and publication of the notice. The public hearing would then be conducted at the April 22 City
Council/EDA meeting.
Staff recommends approval of the resolution authorizing publication of notice and holding of a public
hearing regarding the sale of 6073 Louisiana Avenue North (Improvement Project # 519).
· o: /]mzc gi3/q -
I
Review: Administra tlon: Finane e:
RFA-O01 ~
CoP~aCK & SONDP. A~L, P.A.
STEVEN A.$ONDRAI,.I, ATTORNEYS AT LAW
MICHAEl, R. ~LEUR
MAR~N P. MA~CHA Edinburgh Executive Office Plaza
W~mA~C, s~r 8525 Edinbrook Crossing
Suite ~203
Brookl~ P~k, Minneso~ 55443
T~PHONE (al i)
FAX (612) 4~
March 29, 1996
Daniel J. Donahue
New Hope EDA
4401 Xyion Avenue North
New Hope, MN 55428
RE:Sale of 6073 Louisiana North
Our File No. 99.11154
Dear Dan:
The EDA has signed a Purchase Agreement with Scott and Michelie
Abbott for the sale of one unit of the two unit twinhome being
constructed at 6073 Louisiana Avenue North, contingent upon
approval of the Purchase Agreement by the governing body of the
EDA. As with any real property, the EDA must consider the
advisability of the sale after a public hearing, and the hearing
must be preceded by 10 days published notice.
The enclosed Resolution orders the publication and the public
hearing. This Resolution should be on the agenda for the April 8th
EDA meeting, and will allow notice in time for a hearing on April
22. Our office will take care of getting the Notice to the New
Hope-Golden Valley Sun-Post in time for publication on April 10.
Please call if you have any questions.
Sincerely,
~!NAL SIGNED
~ ~T~N ~ MALECHA
Martin P. Malecha
m3f
cc: Valerie Leone, City Clerk (w/enc)'
Kirk McDonald, Management Assistant (w/enc)
Sarah Bellefuil, Administrative Assistant (w/enc)
Steven A. Sondral!, City Attorney
EDA RESOLUTION NO. 96-__
RESOLUTION ORDERING PUBLISHED NOTICE AND
PUBLIC HEARING ON SALE OF 6073 LOUISIANA AVENUE NORTH
WHEREAS, the Economic Deve]opment Authority in and for the
City of New Hope (EDA) owns certain real estate known as 6073
Louisiana Avenue North, legally described as:
Lot 2, Block 1, Cameron 3rd Addition, Hennepin County,
Minnesota,
(the Property), and
WHEREAS, the Property is being improved by the construction of
one unit of a two unit handicap accessible twinhom¢, and
WHEREAS, Scott and Michelle Abbott have offered to purchase
the Property from the EDA, and
WHEREAS, Minn. Stat. 469.105 requires a public hearing to
determine the advisability of the sale of EDA real property,
preceded by published notice.
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 staff are directed to ensure the NOTICE OF PUBLIC
HEARING PER MINN. STAT. §469.105 AUTHORIZING SALE OF
PROPERTY AT 6073 LOUISIANA AVENUE NORTH attached hereto
as Exhibit A is published in the official newspaper of
the City on April 10, 1996.
3. That a public hearing on the advisability of the sale of
Lot 2, Block 1, Cameron 3rd Addition to Scott and
Michelle Abbott shall be held in accordance with the
Notice of Public Hearing attached hereto as Exhibit A.
Adopted by the Economic Development Authority in and for the
City of New Hope this 8th day of April, 1996.
Edw. J. Erickson, President
Attest:
Daniel J. Donahue, Executive Director
NOTICE OF PUBLIC HEARING PER MINN. STAT.
§469.105 AUTHORIZING SALE OF PROPERTY
AT 6073 LOUISIANA AVENUE NORTH
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF NEW HOPE
Notice is hereby given that the Economic Development Authority
in and for the City of New Hope, Minnesota, will meet on the 22nd
day of April, 1996, at 7:00 o'clock p.m. at the City Hall, 4401
×ylon Avenue North, in said City for the purpose of holding a
public hearing to consider sale of the following described property
to Scott and Michelle Abbott:
Lot 2, Block 1, Cameron 3rd Addition,
H~nnepin County, Minnesota
6073 Louisiana North, New Hope
PID No. 05 118 21 21 0115
The public may see the terms and conditions of the sale at the
City Hall. At said public hearing, the Economic Development
Authority will decide if the sale is advisable.
Ail persons interested are invited to appear at said hearing
for the purpose of being heard with respect to the sale of the
described property.
Dated the 8th day of April, 1996.
s/ Valerie J. Leone
Valerie J. Leone
City Clerk
(Published in the New Hope-Golden Valley Sun-Post on the 10th day
of April, 1996.)
EXHIBIT A