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062496 EDA Official File Copy CITY OF NEW HOPE EDA AGENDA EDA Regular Meeting #11 June 24, 1996 Agenda #12 Pres~dent 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 June 10, 1996 4. Discussion Regarding City Financial Assistance for Proposed Developments at Winnetka Center Shopping Center 5. Resolution Approving Plans and Specifications and Ordering Advertisement for Bids for Construction of Single Family Home at 6067 West Broadway (Improvement Project No. 545) 6. Motion Authorizing Staff to Obtain an Appraisal for Property at 5540 Winnetka Avenue North 7. Resolution Approving Letter of Understanding with Tasks Unlimited, Inc., for Loan to Purchase Housing 8. Motion Approving Tasks Unlimited, Inc., to Sign a Purchase Agreement for the Duplex Property Located at 2829/2833 Flag Avenue North 9. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes June 10, 1996 Meeting #10 __ CALL TO ORDER President Erickson called the meeting of the Economic Development Authority to order at 7:12 p.m. ROLL CALL Present: Erickson, Enck, Norby, Wehling (excused at 7:21 pm) Absent: Otten Staff. Present: Sondrall, Donahue, Leone, McDonald, Bellefuil APPROVE MINUTES Motion was made by Commissioner Norby, seconded by Commissioner Wehling, to.approve the EDA minutes of May 28, 1'996. Voting in favor: All. Motion carried. NORTHRIDGE President Erickson introduced for discussion Item 4, Resolution Relating to Item 4 a Redevelopment Agreement with Northridge Properties of New Hope Limited Partnership; Waiving the HRA Lien Maturity Under the Redevelopment Agreement in Connection with the Issuance of Refbnding Bonds by the City and Authorizing Execution of Various Documents in Connection with Such Refunding Bonds. EDA RESOLUTION Commissioner Wehling introduced the following resolution and moved its 96-11 adoption: "RESOLUTION RELATING TO A REDEVELOPMENT AGREEMENT Item 4 WITH NORTHRIDGE PROPERTIES OF NEW HOPE LIMITED PARTNERSHIP; WAIVING THE HRA LIEN MATURITY UNDER THE REDEVELOPMENT AGREEMENT IN CONNECTION WITH THE ISSUANCE OF REFUNDING BONDS BY THE CITY AND AUTHORIZING EXECUTION OF VARIOUS DOCUMENTS IN CONNECTION WITH SUCH REFUNDING BONDS." The motion for adoption of the foregoing resolution was seconded by Commissioner Enck, and upon vote being taken thereon the following voted in favor thereof: Erickson, Enck, Wehling, Norby; and the following voted against the same: None; Abstained: None; Absent: Otten; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. SUSPEND MEETING The EDA meeting was suspended at 7:14 p.m. to conclude the Council Meeting. RECONVENE MEETING The EDA meeting reconvened at 7:41 p.m. IMP. PROJECT 519 President Erickson introduced for discussion Item 5, Resolution Authorizing Item 5 Publication of Notice and Holding a Public Hearing Regarding Sale of 6081 Louisiana Avenue North (Improvement Project No. 519) EDA RESOLUTION Commissioner Enck introduced the following resolution and moved its 96-12 adoption: "RESOLUTION AUTHORIZING PUBLICATION OF NOTICE AND Item 5 HOLDING OF A PUBLIC HEARING REGARDING SALE OF 6081 LOUISIANA AVENUE NORTH (IMPROVEMENT PROJECT NO. 519)." The motion for New Hope EDA June 10, 1996 Page 1 adoption of the foregoing resolution was seconded by President Erickson and upon vote being taken thereon the following voted in favor thereof: Erickson, Enck, Norby; and the following voted against the same: None; Abstained: None; Absent: Otten, Wehling; 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 Norby, seconded by Commissioner Enck, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 7:42 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA June 10, 1996 Page 2 IlI~~~ I~OR A~rION Originating Depax~ment Approved for Agenda Agenda Section City Manager EDA 6-24-96 Kirk McDonald (~ Item No. By: Management Assistant By:.i/ DISCUSSION REGARDING CITY FINANCIAL ASSISTANCE FOR PROPOSED DEVELOPMENTS AT WINNETKA CENTER SHOPPING CENTER Developer Mark Senn of Marcus Corporation (Commercial/Industrial Real Estate) has met with City staff to discuss two proposals for development at Winnetka Center Shopping Center at 45th and Winnetka Avenues. He has prepared the enclosed correspondence and will be in attendance at the EDA meeting to review the proposals with the EDA and to request some financial assistance from the City. The two proposed developments include: 1. Interior Remodeling of Super Value Store A company known as Data Recognition, which designs custom surveys and testing for students, is interested in a long-term (10 year) lease of the Super Value space and purchase of the building after the lease expires. Data Recognition employs 250-400 college educated employees and has a $2.1 million payroll. The company's headquarters are in Minnetonka. This site is desirable to them because of the bus/transit services available. If they leased the site approximately $600,000 worth of interior remodeling would be completed. Although this is not a retail establishment, an office use such as this could revitalize the other businesses in the center with the large number of employees. Office uses are a permitted use in the B-4 Zoning District. MOTION BY SECOND BY // -- / ~ - Review: Arlrn!rttstratlon: Finance: RFA-O01 Request for Action 2 6-24-96 . 2. Construction of a D Queen on the corner of 45th & Winnetka' The developer is also interested in splitting off the comer parcel and constructing Braizer (full- operation) Dairy Queen with a drive-thru window. This would be a satellite convenience food facility similar to McDonalds. The Dairy Queen with drive-thru would require a subdivision/amendment to the Shopping Center PUD conditional use permit for a drive-thru window. The property is located in an area where tax increment financing funds could be utilized and the developer will be inquiring about the EDA's interest in these projects and the potential for City financial assistance. Excerpts from the recently completed Market Study are also attached for your reference. marcus . · corporation June 12, 1996 Mr. Kirk McDonald City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 De~r Kirk: We represent a company, Data Recognition Corporation, which is actively involved in relocating · and expanding a division of their company. Data Recognition is in the business of customized testing and nationally services states, school districts, corporations and others requiring or desiring customized tests for measurement or assessment purposes. We are currently involved in negotiating with Super Valu for the 40,000 square feet of vacant space at 45th and W'mnetka. Prior to finalizing an arrangement with Super Valu we have met now and explored the prospect of any city economic development assistance. The 45th and W'mnetka site, while bein~ our most desired site, quite simply doesnt compete with other locations economically. For this reason we have broached a discussion over potential dty economic development assistance. Data Recognition will initially employ approximately 250 people and intends to employ up to 450 if enough skilled employees can be found. Data Recognition is quite excited about the New Hope location given its easy mass transit access, goods and services provided in the area, as well as its population density and potential employee base. To help fall the gap created between this site and other available spaces we are requesting that the City and its Economic Development Authority (EDA) authorize staff to explore, negotiate and recommend a finandal package involving some city assistance. We also represent a Dairy Queen franchise that is interested in adding a DQ/Brazier unit on an outlot (corner of4$th & Winnetka). At the ~anchisee's request we would also like to discuss the potential of using TIF to help defray parts of the cost of development. Both of these deals involving separate clients need to stand independently, however, as we have undertaken discussions with the city involving potential assistance it only makes sense to discuss both at the same time. I have attached a building layout for the former grocery store space and I have attached some basic information on the Dairy Queen unit. 10001 Wayzata Blvd. · Suite 100 · Minnetonka MN 55305 · (612) 593-I 177 · Fax (612) 544-0999 Mr. Kirk McDonald June 12, 1996 Page 2 Please let me know if there is any additional information you need, other, vise we will look forward to an opportunity to address the EDA in the near future. Sincerely, Mark O. Senn MOSfojm . DAIRY Q'UEEN~/BRAZIER~ STORE Buihling Size: 2600 .gq. Irt Lot Size: 30, 000 Sq. P~ DAIRY QUEEN®/BRAZIER® MENU DAIRY QUEEN® SOFT BRAZIER* FOOD ITEMS SERVE ITEMS · Hamburgers · Cones, · Sundaes · Hot Dogs · Shakes/Malts · French Fries · Banana Sp~it · ' Onion Rings, - Peanut Busier° Parfait e BIi~m~'. FFavorTreat · Gritted Chicken Sandwich · ChickenSfrlp Basket Pl'~o~e: 6 ~2/$30-02,)0 F.~X: 6 ~2/33~)'-0,~.50 t ~Hop7 '"' i P~ym( ~th ~ N TKA Park III I EXISTING CONDITIONS The Winnetka Center is located west of Winnetka Avenue between 45th and 42nd Avenues. The center holds + 92,400 square feet of leasable space, 42,200 square feet, or 46 percent, of which is currently available. It should be noted that the vast majority of vacant space (_+ 36,000) square feet was held by a single use (former grocery store). The mix of current tenants is eclectic and does not provide for any business interchange or accumulative attraction to draw consumers to the Center. The tenant mixture, both past and present, combined different types of commercial businesses. While some consumer interchange could be anticipated between the businesses, the majority of businesses in the Center attract a distinct market which does not serve to complement other tenants. For example, the Center's most prominate tenant, Marquette Bank is not retail oriented. The current tenants are listed in the table below: " TABLE 1 WINNETKA CENTER EXISTING TENANTS Code Business Approximate Square Footage 1 Marquette Bank 10,800 2 Hair Styling and Tanning 1,600 3 New Hope Pet and Supply 1,600 4 Vacant 1,600 5 Vacant 1,600 6 Winnetka Chiropractic 1,600 7 Cardinal Beauty Supply 1,600 8 Abbey Carpet 4,000 9 Ace Hardware 6,000 10 Circus Pizza 11,000 11 Karate 2,500 12 Anderson Floral 2,500 11 The Spectacle Makers ~ 2,500 12 Liquors 5.000 13 Vacant 2,500 16 Vacant 36,000 TOTAL 92,400 '1 SITE CHARACTERISTICS Location is the key to any successful business. Strengths and weaknesses of commercial sites must be evaluated to assist in developing market strategies for each site. Site location, accessibility, surrounding land uses, and physical barriers all influence the type, size and impact ~ commercial uses. A summary of the strengths and weaknesses of the Winnetka Center is provided below: Strengths · Located along Winnetka Avenue, the site lies adjacent to a major collector street. Traffic volumes upon Winnetka Avenue directly east of the Winnetka Center are approximately 14,000 trips Per day. · The site has good visibility to southbound traffic on Winnetka Avenue. · An ample supply of off-street parking exists upon the property. · The existing commercial center is structurally sound and well maintained. · The center lies adjacent to multiple family residential uses which contribute to its customer base. . ·The center has an efficient vehicular circulation system. · The site is provided with a full range of municipal utilities. · The site is serviced by three MCTO bus routes. Weaknesses · Duein large part to its setback, building configuuation and orientation, the center has limited visibility to northbound traffic on Winnetka Avenue or 42nd Avenue. · The center does not have a strong anchor retail ,tenant from which spinoff business may result. · The centers most visible tenant (Marquette Bank) is not retail oriented. · From a design standpoint, the orientation of the center isolates the building from adjacent commercial uses to the south. NEW HOPE JVJARKET STUDY NOVEHBER J cJcJ5 :~'~ The s~te ~s minimally Packing area is sett)ack fi.om the. building lanCtscaped, a S4gnificant distance ~ncreasmg ~nconvlenence. . Expansive paining area wrth overs~p~ of spaces c~eates excessNe OU~lding --~ ~. SetpaC~( whicJ'l cliscourages pedestnan 45tn Avenue ~J traffic and reduces visibilit~ trom Winnetka Ave. The Center laci<s a strong anchor tenant to attract spinoff ~sinesses No pedestrian connection exists between the Center and the pui31ic sidewalk. Northbound traffic on Winnetka Avenue mu~t make left turn to acce~s the Center. The site layout isolates the Center from adjacent commercial uses to the south. I "L" shape design screens Center from northbound traffic on Winnetka Avenue and traffic I at the 42nd Avenue. 42ne Avenue I I I Public sidewalk I Site Issues Map 2 · The site is minimally landscaped. The lack of such landscaping, particularly in the center's parking lot, results in a bleak, barren appearance. · The center's identification sign is dated and does not promote a "vital" or "active" retail experience. · The center is an older architectural design which does not incorporate contemporary design elements which draw attention to the center. · The existing tenant mixture is eclectic and does not present any accumulative attraction or business interchange advantages. · · At peak traffic times, access to the center can be inconvenient as northbound t'r'affic along Winnetka Avenue must make left turns to access the center. · The center does not promote pedestrian traffic as it is setback a significant distance from Winnetka Avenue. The existing site layout does not invite pedestrians from adjacent sidewalk areas to the center across an exp. ansive parking lot. · The center has an "over supply" of off-street parking. According to an APA reference document entitled "Off-Street Parking Requirements", five parking spaces for each 1,000 square feet of leasable area are recommended for shopping centers. Utilizing this standard, an off-stri-et parking supply of 462 parking spaces would be considered adequate. With a total supply of + 540 spaces, the center is in significant excess of the off-street parking supply considered necessary to accommodate the use. As illustrated by the items above, the existing site layout and building design does not promote convenience. A direct result of these problems is the center's vacancy rate and less desirable tenant mixture. NEW HOPE [V~ARKET STUDY NOVEMBER 1995 STUDY CONCLUSIONS When New Hope's commercial retail areas were originally developed, they served a trade area that included residential neighborhoods beyond its boundaries in Plymouth, Maple Grove, and Brooklyn Center. The New Hope, commercial facilities competed and shared the trade area witfl commercial shopping facilities in Golden Valley, Brooklyn Center and Crystal. As New Hope and its surrounding communities have matured through the 1980s Jl and 1990s, the following physical and demographic influences have reduced the City retail trade area. !1 Demographics I Demographic and sales trends identified in earlier market studies in.1985 and 1987' have continued through 1995. These trends indicate that New Hope's retail trade area continues to be reduced. I 1. As New Hope and its mature neighboring communities reached development saturation, the population has declined and matured. This results in older, smaller I households in immediate proximity to New Hope's commercial areas. 2. Between 1980 and 1990, New Hope's median age has increased and average I household size declined. Tl~e number of residents over the age of 55 has increased from 14 percent to 24 percent during this same period. These demographic characteristics project a different consumer group than the young families of the 1970s. 3. The emerging communities of Brooklyn Park, Maple Grove, and Plymouth which I have land available for development display strong growth. continue to The demographic profile of these communities contrast with mature communities in that they exhibit younger median age, larger household sizes, and greater household income. i 4. With the exception of Golden Valley at $46,212, the median income of New Hope and the mature communities average $35,116. In contrast, the growing communities to the north and west have mediah incomes that range from $40,018 I to $51,314. NEw HOPE MARKET STUDY NOVEMBER I gg5 27 Retail Space Following the strong residential, the newer communities of Brooklyn Park, Maple Grove, and Plymouth have experienced extraordinary commercial growth since 1985. During this period, these three communities have added approximately 2.6 million square feet of retail space. This corrrmercial growth is anticipated to continue with ongoing development in Maple Grove at the 1-694/VVeaver Lake Road interchange and the Plymouth City Center area at Vicksburg Avenue and Highway 55. Additionally, Golden Valley is undertaking Crystal is undertaking a commercial redevelopment, at Bass Lake and West Broadway. The introduction of new retail facilities in these surrounding communities reduces. New Hope's retail drawing power. These new facilities offer new contemporary retail opioortunities, a location convenient to major transportation routes, and residential growth areas that were historically served by New Hope commercial facilities. Most of New Hope's retail/shopping centers were developed in 1960 and 1970. In 1985, the New Hope Mall underwent major redevelopment, changing the appearance of this facility. However, other shopping centers such as Winnetka Center, Midland Shopping Center, Poste Haste Center, and the K-Mart generally hold their original architectural form. These centers do not present the fresh and exciting appearance of the newer contemporary facilities being constructed. Steps are being taken by Midland Shopping Center with regard to landscaping 'and site design in an effort to maintain a fresh appearance. Vacant retail in New Hope has increased from 5 in 1989 to over 20 space percent percent in 1995. Transportation The transportation network has contributed to reducing New Hope's trade area. The major highways and freeways (Highway 169, 1-694, and 1-494) serve a physical barrier that diverts traffic by New Hope. The Winnetka Center's proximity one mile east of Highway 169 does not present a convenient shopping location of area commuter traffic. Retail Sales New Hope retail sales for 1986 through 1990 exhibit a decline,. 1992 sales figures showed a jump in sales, while some increase was anticipated with the maturity of the Winnetka Commons Shopping Center. The significance of the increase raises question on accuracy of the reporting. Comparatively, New Hope ranks behind most of the other study area communities in sales and per capita sales. NEW HOPE: ~VIARKET STUDY NOVE.~4BE;R I C~C:J5 28 I STRATEGIES FOR RETAIL Market conditions indicate that New Hope market focus has changed from a regional to community or neighborhood focus. Shoppers Goods Shoppers goods retailing has exhibited declining sales in areas of household appliances, furniture, apparel. Only merchandise and automotive retailers and miscellaneous exhibited growth. New commercial growt, h within the study area will make difficult for New Hope commercial facilities to compete in the shopper good markets. Shoppers goods retailing in' larger box stores which focus on a regional markets i's the current retailing tren~l. These facilities attempt to locate on larger parcels in close proximity to major highways. The Winnetka Center building manager's efforts to solicit tenants for the vacated Super Valu space gain responses from the major box store retailers (including Kohl's Department Store, Home Depot, Pet Food Warehouse, etc.) that prefer location two miles west of Winnetka Center near the freeway. Under these circumstances, the continued pursuit of shopper goods retailers will not. likely be productive. Convenience Goods The market analysis suggests that within a declining trade area, New Hope retailers must increasingly focus on community-wide and neighborhood markets. Local retailing should be geared towards convenience goods and services that address the day-to-day needs of New Hope's changing consumer profile. Winnetka Center already includes a number of convenience goods retailers, including hardware, liquor and florist. Future marketing and renovation should enhance these types of businesses by attracting complementary business and making physical improvements to the building and site that presents an image of convenience and vitality. The Winnetka Center was originally constructed as a designation shopping center. Its building design and site layout does not lend itself to a Convenience retail center. In giving attention to convenience goals and services, the following changes are recommended. These changes could involve the redevelopment of the site. 1. The total floor space of the Winnetka Center may be greater than needed for a convenience shopping center. 2. The size of the tenant does not lend itself to being carved for smaller larger up convenience businesses. Nmw Homm MARK~:T STUOY NOV~rM~R ) gg5 29 3. The building location and orientation on the site causes it to be lost from view from adjoining streets contributing to the perception that it is difficult to get to and detracting from the center's identity. 4. The shopping center's architectural form has not changed dramatically from original construction. A facelift or renovation to the building facade, perhaps adding some vertical elements to the building's front elevation could change the appearance and image of the Winnetka Center. 5. The large parking lot isolates the shopping center at the rear of the site. If the shopping center is redeveloped, a new smaller retail facility in closer proximity to Winnetka is suggested. If the existing center is retained, a satellite building should be considered to give the site additional visibility and to enhance the 'City's. shopping center image. A second-option would be to reduce the parking area and expand the site's green space and landscape area to make the site more attractive and inviting. 6. The parking lot layout moves the parking stalls away from the building. Rearranging the parking to place parking closer to the business entrance emphasizes consumer convenience. 7. The Winnetka Center offers no defined pedestrian connection between the building and public sidewalks. 8. The Winnetka Shopping Center tenant mix is very eclectic. The consolidation of complementary businesses would assist in promoting a higher degree of accumulative attraction and business interchange. Marketing focus should be on attracting complementary businesses. While the loss-of the Super Valu supermarket is reflective of the trend toward larger wholesale grocers, the site may offer some potential for a convenience grocery store at a smaller scale than the previous Super Valu store. The nearest convenience food store is located near the corner of 49th Street and Nevada Avenue. Other than this store, food retailing in New Hope is limited to community gas stations. The Winnetka Center's current lease with Super Varu presents an obstacle to any new food store from entering the shopping center. Resolution of the lease issues must be addressed with any treatment of the shopping center. NEW HOF~E ~IARKET ~TUDY NOVENBER I ~g5 3O Other Commercial Opportunities Other commercial activities to investigate in the redevelopment, renovation, and marketing of the Winnetka Center to include: 1. Entertainr~nt/Recreation: With the decline in traditional retail sales facilities, the promotion of entertainment and recreational commercial use has worked with other New Hope shopping centers. New Hope Center uses U.S. Swim and Fitness and Blockbuster Video as major anchors. Midland Shopping Center has Cinema Drafthouse Theater as a major tenant. Currently Circus Pizza is a major tenant to the Winnetka Center. The promotion of additional entertainment/recreation commercial facilities can be a significant attraction to the shopping center that would enhance the Winnetka Center image. 2. Dining: Associated with the entertainment facilities opportunities may exist in additional dining facilities. Fast food restaurants have dominated the City Center area both as freestanding facilities and within the New Hope Center. These existing fast food restaurants saturate the current market and have a business interception advantage over the Winnetka Center. Sit down restaurants with liquor offer some potential. If a dining facility is pursued it must be a sit down restaurants offering a unique attractive image. The facility must be freestanding away from the Winnetka Center to take advantage of the visibility from both Winnetka Avenue and 42nd Avenue. 3. Automotive: Automotive goods and services have displayed sales growth in New Hope since 1987. The introduction of automobile goods and service businesses would likely require some redevelopment of the Winnetka Center building and site layout. Historic sales trends suggest that this area retailing in New Hope has remained steady. 4. With the changing retailing environment, consideration may be given to non- retailing uses. Commercial office space may offer a workable option in conjunction with the other retailing options. I NEW HOPE MAI~KI~T C~TUIDY NOVEHS~R I gg5 31 EDA ~~~~O!;} RE~UF~T FOR, ACTION Originating Depmt,.~ent Approved for Agenda Agenda Section City Manager EDA 6-24-96 Sarah Bellefuil ~ '"~ Item No. By: Community Development Specialist By:.J / 5 RESOLUTION APPROVING PLAN$/ AND SPECIFICATIONS AND ORI~ERING ADVERTISEMENT FOR BIDS FOR CONSTRUCTION OF SINGLE FAMILY HOME AT 6067 WEST BROADWAY (IMPROVEMENT PROJECT NO. 545) At the April 22, City Council meeting, the City Council directed staff to work with the firm Planning & Design, Inc., to develop plans for the proposed single family home to be located on the vacant City- owned property at 6067 West Broadway. Plans and specifications have now been prepared and the enclosed resolution approves the plans and specifications and authorizes an advertisement for bids. Pending further input from staff or the EDA on design changes or changes to the specifications, it is anticipated that bids will be opened Thursday, July 18, and considered by the EDA on July 22, with construction to begin immediately. The City of New Hope purchased the property at 6067 West Broadway from HUD, due to mortgage foreclosure, in October, 1995, for $41,400. The site was originally inspected by Jean Coone, General Inspector, and the staff at Project for Pride in Living. They recommended that it should be demolished because of its deteriorated condition and numerous code violations. In response, the house was demolished on June 12 - 14, by R.P. Excavating. The project is being sponsored by the City in conjunction with the 5-City CO-OP Northwest Community Revitalization Corporation and the Metropolitan Council. It is being funded, in part, with Federal HOME program funds, and CDBG funds. CO-OP Northwest will provide a second mortgage so that the house will be affordable to a person/family with low/moderate income. The City will oversee the construction and upon completion the house will be sold to a qualified first-time home buyer. ' ? -/$. ,, / Review: Administration: Finance: RFA-O01 ~ Request for Action 2 6-24-96 A reduced set of plans and specs for the house is attached to this request. The finished house will have three bedrooms, 1 V2 bathrooms, a living room, dining room, kitchen, dinette, two car attached garage, and a basement. Construction costs to build the new home are estimated at $90,000. Tom Schuster, the City Forkster, will design a landscaping plan for the site which will be presented to the EDA at a later date. The site will be landscaped once construction is complete. Staff recommends approval of the resolution approving the plans and specifications and authorizing an advertisement for bids for construction of a single family home at 6067 West Broadway. JUN-19-96 ~ED 16:38 P, 02/13 EDA RESOLUTION NO. 98- RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR CON6'I'RUCFION OF SINGLE FAMILY HOME AT 6067 WEST BROADWAY IMPROVEMENT NO. 545 " WHEREAS, the Economic Development Authority in and for the City of New Hope (EDA) owns certain real est&ts known as 0007 west Broadway, and WHEREA3, in order to further the economic development of the City of New Hope (City), the EDA w{ll construct a single family home on sa~d real estate, to be known as City Zmprovement ftc, 645, and WHEREAS, plans and specifications for said Improvement 545 have been prepared and presented to the EDA for approval. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: I. Plans und speuiri~aLiuns of proposed single family home at 6067 West Broadway, Improvement No. 545 of the C~ty, a copy of which plans and specifications are attached hereto, are hereby approved, and a copy thereof shall be placed on file ~n the off,ce of the City Clerk. 2. The City Clerk ~$ hereby authorized and directed to advertise for blds in the New Hope-Golden valley Sun-Post, the official newspaoer of the City, and in The Construction Bulletin for the construction of said improvement using said approved plans arid speGifiGations. The advertisement shall be published for 10 days, shall specify the work to be done, shall state that bids will be opened at 11:00 a.m. on Ju~y 18, 1996, in the Council Chambers of the City Hall and will be considered by the EDA at 7:00 p.m. on July 22, 1996, in t~e Council Chambers of the City Hall. Any b~dder whose respons~b{t~ty ~s questioned during consideration of the b~d will be 9iven an opportunity to address the EDA on the issue o~ responsibil~:y;y. NO OidS will ~e considered unless sealed and filed w~th the City Clerk and accomoanied by a cash .." deposit~ cashier's check, bed bond or certified check payable to ~_. the New Hope EDA for five (5) percent of the amount of such Dld JUN-19-96 WED 15:38 P, 03/13 AdOpted by the Economic Development Authority in ar~cl for the City of New Hope Lhis 2¢th d&y o? June, 1996. President At t est: Bxecutive Director I=RONT ELEVATION JUN-t9-96 ~ED 15;38 P. 04/13 BUILDING CONSTRUCTION CONTRACT FOR 6067 WEST BROADWAY LZCENSE NO: By this agreement'dated the day of , 195~, a , and licensed building contractor, Minnesota ID No. (hereinafter "Builder") and the Economic DeYelopment Authority in and for the City of New Hope (hereinafter "Owner") and covenant and agree as follows; 1_ Raal F~tata. a. Builder shal1 furnish all labor and materials for the construction of a single family residence (the "Dwelling") in accordance with plans and specifications attached hereto as Exhibit A (the "Plans") and all other documents ~tia~hed hereto as exhibits to this contract. b. The Dwelling shall be constructed on the following real property (the "Property") In Hennepin County, Minnesota, legally described as: Lots I and 2, Block 1, Mork-Campion'Heights~ according to the duly recorded plat thereof. c. Owner hereby represent to Builder that it is fee owner of the Property. 2. Completion Date. Builder shall begin ~onstructton of the Dwellin9 no later than ~fteen (15) days after Notice to Proceed from Owner, and shall continua to work with all reasonable diligence to final completion. Except aa otherwise provided in this Agreement, Builder aha11 complete construction of the Dwelling on or before a date sixteen weeks after Builder race,Yes the Notice to Proceed (the "Completion Date"). The Notice to Proceed shall be issued in writing to Builder by Owner after all contract documente~ bond~ and insurance have been provided or executed, and after Owner tiaa signed Purchase Agreements with buyers for each of the r~idential units in the Dwelling. JUN-19-96 [4ED 15:38 P, 05/13 A. ~on, rac, Price. In consideration of Builder supplying all laOor, material and services required by thi~ contract, Owner agrees to pay the Builder the sum of~ and no/lOOths Dollars ($ ) (the "Contract Price") to be paid a~ ~t forth in the Payment provisions below. 4. Builder Resoonsibilities. Builder shall furnish alt labor, material, equipment, utilities and ~n¥ other item~ necessary to complete the Dwelling in accordance with the Plans (the "Work") and suc~ materials shall be new, good quality and shall be of the grades specified in the Plan~ and where ~ grade is not ~pecified, materials must be of a quality comparable to those grades and materials w~ich' are specified in the Plans. In the event of any shortages or discontinuations of products or materiels specified in the material description list, Builder must obtain written permission From Owner or Owner's agent to substitute materials or products of e~ual or greater value. All labor and work performed by Builder shall be performed in & good and workmanlike manner, in compliance with all applicable Federal, state and local laws, rules, regulations and codes, and to Owner's satisfaction. 5, Utilities. Builder shall be solely responsible for verifying the ex&ct location o~ all utilities, and prior to any construction shall notify all utility companies having utilities in the project area, Builder shall have sole responsibility for providing temporary support and for proteuling and maintaining ~ll existing utilitie~ in the pro~ect area during the entire period o? construction. ~. 8afet~ and Oonvenienoe of Private and ~w. blic PropertY. The 8uilder ~hell not enter upon private property fnr any purpose without obtaining written permission from the Owner thereof. The Builder shall not damage any trees or other property ~tong ~he street and/or public right-of-way. The Builder shall give all notices end comply with mll laws, ordinances, rules and regulations applicable to performa~ue under this Contract. The Builder shall provide adequate signs and barricades, and will take all necessary precautions for the protection of the Work &nd the safety of ~he public. ?. P~rmit$ The Builder s~all obtain and pay for all permits and licenses, and give all no~ices, pay all fees, and shall comply with all laws, ordinmnoe~, rules and regulations bearing on the Work. Builder s~all also pay all public uliliLy char-ge~, government charges and JUN-19-96 ~ED 15:39 ?, 06/13 inspection fees, Notwithstanding the foregoing, all building permit fees char'ged by the City of New Hope, as well as sewage connection charges and water connection charges, shall be waived for the, Work. This waiver doe~ not apply to state surcharges, e]ectrica] permit fees, or any other costs and £ees, bu'[ only applies to building permit fees charged by the City ct New Hope, and sewage and water connection charges. If Builder performs any of the Work contrary to such lawa, ordinances, rules and regulations, the Builder shall bear all costs arising therefrom. 8, Bonds. Builder shall orovide a performance bond and a material and labor payment bond, each bond in an amount equal to the contract amount as security for the cornplele per'rur'mance and payment of all Builder's obligations under this contract, and issued by a surety licensed to do business in Minnesota. The performance bond and material and labor payment bond shall be in a form acceptable to the New Hope City Attorney. Builder sha~ .pay all labor and material suppliers when payment is due and before any claims are fi~ed for the same against any payment bond required by this Contract. 9. Chango Orders. Zf a change ~n plans and specifications is requested by Owner and wilt result in Builder furnishing additional labor or materials, Owner and Builder shall reach an agreement in writing specify'lng the a'dd~tional labor and/or materials, and also specifying the agreed upon price for such change. If notice of a change in the contract price is required to be given to & surety by the provisions of any bond, ~t will be Builder's responsibility to not~fy the surety and provide proof of any adjustment in the bond amount to the Owner. Owner reserves the right to delete one or more items of the Work as itemized in the specifications attached as Exhibit A. These deletions shall be done by written change orders, and the contract price shall be adjusted downward by the deleted itemized amount. Owner's right to delete such item or items $hal1 be limited to those items of the Work not yet installed or completed. 10. TnsuranGe. Before beginning actual work under this contract, the Builder shall submit to the Owner and obtain the Owner's a~proval of a Certificate of Insurance on standard form C.I.C.C.-701 or Accord 2S rot'ms showing lhe [011owing insurance coverage and listing the Owner as a loss payee under the policies: 3 JUN-19-96 ~D 15:39 P, 07/13 A. Comprehensive General Contractor Liability ~ $500,000 B. Automobile Liability for All Veh+%lee - $500,000 C. Workman's Oompensation- Statutory Amounts O. Excess Liability Umbrella - $1,000,000 E. Builder's Risk on a Multiple Peril Form - Full Contract. Amount The certificate must provide for the above coverage to be in effect from the date of the contract until at least 30 days after the completion Date, and must provide the insurancecoverage will not be canceled by thA insurance c~mpany without at least 30 days written notice to the Owner of intent to cancel. Any deductible clause shall not exceed $1,000.0o. 11. Warranties. The Builder warrants and guarantees to Owner that all Work, including materials and equipment, will be in accordance with the contract documents and will not be faulty or defective. All defective work, whether or not in place, may be rejected by Owner, and any such rejected work ~hell be corrected by Builder at its own cost and expense. If any work is found to be defective within two years after ~he date of flnal acceptance of the project by Owner, Builder shall promptly correct such defective work at Builder's sole cost and expense. The Builder will also transfer to the Owner or any Purchasers from Owner any warranties upon materials and equipment used in the construction under this contract which are 9ivan by the manufacturer. The above warranties shall be in addition to all warranties provided by law and not in limitation thereof. The Owner and its successors and asstgn~ ~ha~l also have the benefit of all statutory warranties in respect to residential construction contracts provided by Minnesol~ S~alute~ §327A.01, e~.. Qeq., in addition to any and all other warranties or guarantees expressly or impliedly included in this Contract or available at law or in equity, sll of which shall be cumulative. The Builder warrants and guarantees that title to all work, material and equipment provided under this contract shall pass to Owner free and clear of all liens, claims, security interest~ and encumbrances, JUN-19-96 WED 15:39 P, 08/13 13, Inspection=. The Owner and its representatives shall have the right to inspect the construction at all times. Any defective work or materials revealed by ~Gch inspections shall be repaired or replaced by Builder within a reasonable time a?ter notice of said defect, and at no cost to Owner. UDon notice from Builder that the construction is complete, Owner and its representatives shall make a final ~nspectlon of the construction and notify the Builder in writing of any ways in which this inspection reveals that the work or materials are defective. Builder shat1, as soon as possible, make such corrections as are necessary to remedy such defects. 14. P__a~aent. Builder she11 be pa~d for the completion pt the Work as set forth below: a, Builder shall ap~ly ~o Owner for an Advance, with each Advance to cover work completed since any ~revious Advance. Builder shall apply for an Advance no more often than once every /our weeks, with the first apglication for an Advance to be no sooner than four weeks after the Notice to Proceed. The fourth and final Advance shall be paid at the f~nal completion of the Work end only after Certificates of Occupancy ?or each res~dent~a~ unit in the Dwelling have been issued. b. Each Advance reques~ shall be in writtng ~n ~he ?ora attached hereto as Exhibit B and set forth the s~ecific Work performed and/or materials supplied, be signed by the Bu{lder, City of New Hope Building Official, and any other inspector or agent specified by Owner and include ~en waivers for all labor and material's involved in the request. c. Owner shall pay 95% of each Advance within 15 businesa daya of receipt from Builder if the following conditions are met: 1) all inspections by the Build~ng Official and any other agent o~ Owner are to Owner's satisfaction; 2] the Advance request ~s complete includ{n~ lien waivers ~nd any other documentation reasonably required by Owner; 3) the Contract Pr?ce less the current and any previous Advances will be sufficient to complete ~he remaining Work; 4) Builder is not in breach of any of 'its duties or obligations under the Contract. The 5~ of eac~ Advance request not pa~d by Owner shall be ~etained until fin~l payment upon completion of the Work. 15. Zndemn~f~cat~on. TO ~he fullest extent permitted Dy law, the Builder shall indemnify 5 JUN-19-96 WED 15:40 P, 09/13 and hold harmless Owner, its agents and employees, from and against all claims, damages, losses and expenses, including but not limited to attorney's fees, arising out of or resulting from the performance of the work, provided that any such claim, damage, loss or expense (1Y-is attributable to bodily injury, sickness, disease or death, or to injury or to destruction of tangible property (other than the work itself) including the loss of use resulting therefrom, and (2) is caused in whole or in part by any negligent or' ir]lerttior]~l aul or' omi~siun of the Builder, any subcontractor, anyone directly or indirectly employed by any of them, or anyone for whose acts any of thQm may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. 16. )ndRmn(fication A.gain~t Mechanic'~ lien~. BUilder shall indemnify and hold harmless Owner, 1ts agents, employees and assigns, from and against all claims, damages, losses, expenses and delays, including but not limited to attorney's fees, arising out of or resulting ~rom the filing of an a mechanic's lien against the Property by any person or entity supplying labor or materials for the completion of the Work contemplated by this Contract. 1 7. ~qbcont Nothing in this contract shall create any legal relationship between Owner and any subcontractor, and no subcontractor shall have any rights under this contract with the Builder. At the time this"contract is signed, Builder shall submit in wri[ing Lo Owner the names of subcontractors proposed for the work. Builder shall not employ any subcontractor to whom Owner may reasonably object. Ar~y subcontractor reasonably objected to shall be replaced with an acceptable subcont rector at no change in the cont tact price, Contractor shall be fully responsible for all acts and omissions of the subcontractors and any persons or organizations directly or indirectly employed by them and persons or organizations for whose acts any of them may be liable to the same extent that contractor (s responsible for the acts or omissions of persons d(reotly employed by contractor, 18. 6s~j ~nment. Builder shall not assign or transfer, whether by an assignment or novation or otherwise, any of its rights, duties, benefits, obligations, liabilities or responsibilities under this contract without prior written consent by the Owner. 19. Owner May Terminate, Upon the occurrence of any one or more of the following events: A. Builder's adjudged bankrupt or insolvent; 6 JUN-tg-96 WED 15:40 P, 10/13 Builder makes a general assignment for benefit of ~r-edi C. A trustee or receiver is appointed for Builder or for any of ~ilder'm property; D. Builder files a petition to take advantage of any debtor's act, or to reorganize under the bankruptcy or similar law; E. Builder repeatedly fails to supply suffioient skilled workmen or suitable materials or equipment; .. F. Builder disregards laws, ordinances, rulee, or orders of any public body having jurisdiction; ~uilder otherwise violates in any substantial way any provi~ion of the contract; Owner may after givin~ Builder end his surety seven (7) days written notice, terminate the services of Builder, exclude Builder from the ~ite and take possession of the work and all-of Builder's tools, applianoes, construot~on equipment and machinery at the s~te and use the same to the full extent they could be used by Builder (without liability to Builder for trespass or conversion), incorporate in the work all materials and e~uipment stored at the site, and finish the work as Owner may deem expedient. In such case', Builder shall not be entitled to receive any further payment until the work is finished. If the unpaid balance of the contract prime exceede the direct and indirect cost of completing the work, including compensation for additional professional services, such excess shall be paid to Builder. If such costs exceed such unpaid balance, Builder ehall pay the d~fferenoe to Owner. ~n finishing the work, Owner sh~ll nut be required to obtain the lowest figure for the work performed. 20. Limitation of LiabilitY. In no event, either as a result of braach of contract, naQlig~nc~ or otherwise shall Owner or its agents or employee~ be liable for d~mages or lost proTlts, loss of use, loss of revenue, loss of bonding capacity, or any other special, indirect or consequential d~mages of eny kind. To the extent this contraot allows any liability to be imposed, the total liability of Owner for any loss, claim or damage arising out of this contract or the'performance or breach thereof, shall be limited to the value of the work performed. 21. ~O~.pi scrimi nat ion. For the work under this contract, BuilOer agrees that in the hiring 7 JUN-19-96 NED 15:40 P. 1. t/13 of common or skilled labor for the performance of any work under this contract or ~ny subcontract hereunder, the Builder, material Suppliers or vendors shall nol, by reason o~ race, creed, color or national origin~ discriminate against the per,on or per~on~ who are qualified and~ aYailmblm to perform the work to which much employment relates; and the Builder, material suppliers or vendors shall not, in any manner, discriminate against or intimidate or prevent the employment of any person or persons, or on being hired, prevent or conspire to prevent any person or persons from the performance of the work under this contract on account of race, creed, color or national origin. 22. Contract DOCuments and Oral This contract shall consist of this document end' all attached exhibits and shal~ comprise t~e entire agreement ~etween Owner &nd Eui]der concerning the work. This contract may be altered only by a writing si~ned by both Builder ~nd Owner. 23. Notice. The ~ddre~s and lelephone number of Builder for the purpose 'of giving notices and any other purpose under this contract sha~ be: A~n: The address and telephone number of Owner for the purpose of giving notices and any other purpoae under this contract shall be: New Hope EPA Attn: Danie~ J. Oonahue, Executive Director 4401Xylon Avenue North New Hope, MN 55428 Corrick & Son~ra11, P.A. ATTN: Steven A. Sondra]l, New Hope City Attorney 8525 Edinbrook Crossing, Suite 20~ Brooklyn P~r-k, MN 55443 (612) 425-5671 8 JU~-l@-96 ~ED 1~41 ?,12/t~ [N WITNESS WHEREOF~ the parties to this contract have hereunto set their hands and seals as of the day and year first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF N~W HOP~, OWNER By Its President By [ts Executive Director Its STATE OF MINNESOTA ) )'SS, . COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of 1996, by Edw. J. Erickson and Daniel J. Donahue, the President ~nd Executive Director, reepectively, of the Economic Development Authority in and for the M~nnesota mun~c~0a] corporation, on behalf of sa~d mun~c~De] corporation, Notary Public 9 JUN-19-96 WED 15:41 P, 13/13 $'I'ATE OF MINNESOTA ) COUNTY OF -- ) The foregoing was acknowledged before me th{s day of , 1996, by , the o~ ~ & _, on behalf of said Notary Public 10 CITY OF NEW HOPE SPECIFICATIONS FOR SINGLE FAMILY HOME AT 6067 WEST BROADWAY NEW HOPE, MINNESOTA The City of New Hope is seeking quotes on the following work to be done in constructing a single family house. The house will be 1594 square feet. BASE Bi]) A. Siding 1. Aluminum with aluminum soffits & fascia. Include exterior wall Tyvek B. Brick 1. Per Plan, $365.00/1000, Material Allowance. 2. Flashing at top of brick C. Garage Door I. 16' x 7'6" Steel paneled door w/low headroom kit. D. Garage Door Opener 1. 1/2 HP with 2 controls E. Insulation 1. R 45 Attic blown 2. R 19 Insulation batts in walls 3. Six mil Poly exterior walls & ceiling 4. Sound channel located on the front interior walls of the house F. Finish Carpentr~ 1. Install all door hardware and locks 2. Set cabinets, per plan 3. Base and shoe in all vinyl & ceramic areas 4. Drill cabinets for hardware & mount hardware 5. Mount address numbers - Black 4" size G. Roofin~ 1. Standard 3-tab 240 pound asphalt shingles H. Gutters 1. Front entry sidewalk area 2. Front of garage. 1. Carpeted areas: bedrooms 1, 2 & 3, hall, living room, and dining room 2. Vinyl areas: foyer, kitchen, dinette, half bath 3. Ceramic tile area: master bat Carpet Specs: Horizons Industries Commercial Carpet "Perfect Spec" #4195, 30 ounce w/synthetic hair and jute pad/or equal. Provide specs on substitutes. · Vinyl Specs: Armstrong "Fundamental Solarian". · Ceramic Tile (floor) Specs: American Olean, Porcelain ceramic - slip resistant surface or equal. Provide specs on substitutes. EXHIBIT A J. Closet Shelving I. Include a thll width shelf in all clothes/coat closets at height to be specified by the homeowner. K. Ceramic 1. Bath floor w/2x2 American Olean 2. Shower walls to six feet high w/standard $2.30/sq. ft. wall tile materials allowance 3. Include aY. our-piece ceramic fixture set (toilet paper dispenser, 2 towel bars & 1 soap dish) to be installed in each bath. 4. Include a ceramic tub surround at the main bath tub with standard $2.30 per sq. foot materials allowance. L. Mirror 1. Both bathrooms - full width of vanity top & 40" high. M. Counter Tops 1. Bathroom - Cultured marble top with custom bowl locations with splashes. 2. Kitchen - Laminate with self edge. N. Curtain Rod 1. Standard tension rod O. Heatin~ 1. 80% Efficient furnace, Lennox 2. Honeywell chronotherm thermostat 3. Bath & laundry exhaust vents insulated & ducted to exterior of building 4. Vent dryer 5. Provide gas supply & hook up for one appliance 6. Ten Seer Lennox A.C, (located near ) P. Plumbin~ ~ t. All white fixtures with chrome components 2. One floor drain basement 3. Kitchen sink - stainless steel, 2 compartments 4. Bath tub - Kohler Villager (white) with valve near fxont edge of the tub 5. Disposal - Badger 1 SS Disposal 7. One fi'ost-proof anti-siphon exterior hose bib located 18" above grade between dining & living room 9. Dishwasher & washing machine hook-up 10. Kohler #3421 stools in both baths with standard seat covers 11. 40-gallon Bradford white hot water heater 12. Locate water shut offs for exterior hose bib behind access cover in dinette 13. Include shut offs at all fixtures 14. Include a wall hung laundry tub and draw box drain 15. Plumber to hook up after one inch ball valve on the water service 16. Moen Faucets in all locations -- Laundry faucet ff4901 o- Kitchen faucet #7210 -- Main bath vanity faucet #4621 -- Main bath tub shower faucet #2353 -- Master bath shower valve #L2351 -- Master bath vanity faucet #4621 17. Sewer and Water Connections -- Locate sewer & water lines in the basement -- Water service connection to include a 1" ball valve approx. 24" offthe floor Q. Electrical l. 150 AMP, Ivory rocker devices, wire one appliance, 4 phone jacks, 2 cable television jacks, air conditioner wiring, 110 CFM bath fans, dishwasher & disposal wiring 2.Locate service box in the garage 3. One garage door opener outlet, wire the garage fire door for a furore auto door opener, 4. not noted on the plan 5.. Furnace wi2'ing 6. Rough in-wiring for future security system. Include 3 doors pre-wired with contacts, l siren, 2 motion, I heat sensor. ['rewired 2 keypad locations. 7.NOTE: Electric meter location may be different than breaker box location. R. Masonry 1. Basement foundation and slab S. Lumber ,- l. Anderson casements (or like), sized per plan, w/nine tandem latches (flashing at windows per manufacturers specifications) 2. Exterior doors - front entry = six panel steel insulated, w/8" sidelight, w/self closing hinges & double bored for deadboit & lever - front entry screen door - fire door = six panel steel with self closer, double bored for deadbolt & lever - sliding glass door with full view glass 3. Interior doors - flush oak w/Weiser lever handles, privacy latches on interior doors to 3 bedrooms & baths 4. Drywall - walls taped & sanded, ready for paint - sprayed ceilings - NOTE firewall detail for zero-lot-line code requirements - garage walls/ceiling - completely rocked & fire taped one coat · 5. Exterior Rail at Entry - 2x2 cedar pickets w/2x4 top & bottom rails between 4x4 cedar posts 6. Millwork - 5/8" Princeton oak casing - 1/2" Princeton oak base - Oak base shoe in all vinyl & ceramic tile areas - Provide white melamine shelving for linens 7. Include functioning gable louvers at garage and gable T. Cabinetry 1. Oak cabinets with custom countertop 2. Flat panel door style with picture frame profile (Knapp #207) 3. Cabinet pulls 4. 4 Roll out shelves 5. 1 Pair lazy susans 6. 1 Regular size stack of drawers in the kitchen 7. 2 Bread boards 8. Single wall hung laundry tub (no base cabinet) 9. Clad interior 10. 30" Upper cabinets, per plan 14. Master vanity to include a stack of drawers also U. Carpentry l. Install cedar railing at front entry, 2. Install "ice and water" barrier over all heated portions of building at roof edge per code 3. Shim windows, per manufacturers specs 4. install sill seal under all window sills 5. Install sill seal under all bottom plates on perimeter doors 6. Install we_a_therguard protection at sidewalks, patio & entries per plan 7. Install roof& soffit vents per code requirements V. Paintine/stainin~ 1. Stained, sealed & varnished woodwork 2. Primered & painted walls 3. Paint garage door 4. Exterior staining, cedar trim around garage doors, garage windows, entry area rail system W. Driveway I. Asphalt, 20' wide to the street, new curb cuts to City specs. Curb replacement shall also include curb removed due to utility service if required. X. Sewer & Water 1. The builder will be responsible for connecting sewer and water fi.om stubs at property line to the house. 2. The builder shall coordinate each connection with Guy Johnson at New Hope Public Works . (533-4823). Y. Gas & Electrical 1. Gas service will be underground 2. Electrical service will be overhead fi.om pole Z. Excavation 1. Include trucking and materials cost for fill required to achieve finished garage slab elevation of · See attached survey showing existing curb heights and random elevations. 2. Remove all tree stumps if any on site. AA. Permits 1. All City permit fees, WAC .and SAC charges will be paid by the City and should not be included in the bid. Contractor shall pay for and include in bid all other fees, charges and surcharges, including electrical permit fees. BB. Trash Removal l. Provide dumpster CC. Include $2,500 appliance allowance in bid $2,500 DD. Include $850 lighting allowance in bid $850 EE. Professionally Cleaned TOTAL $ NOTE: Landscaping and sodding will be completed by the City and should not be included in the bid. Name of Company' Contact Person Address Telephone Number Signature of individual submitting quote PLEASE RETURN QUOTES BY 11:00 A.M. THURSDAY, JULY 18, 1996, TO: Sarah Bellefuil City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 The quotes will be considered by the New Hope City Council at the Monday, July 22, 1996 Council meeting. All work is to be completed by April, 1996. The lowest responsible bidder will be expected to enter into a contract with the City to ensure the completion of the work in a timely manner. Payment will be made by the City upon acceptance of the quality and completion of all the work. COUNCIL  REQUEST FOR ACTION Originating Department Approved for Agenda Age~d~ ~5ection City Manager EDA Sarah Bellefuil ] 4-96 Item No. By: Community Development Sp¢ciali: By:./ 6 MOTION AUTHORIZING STAFF TO OBTAIN AN APPRAISAL FOR PROPERTY AT 5540 WINNETKA AVENUE NORTH City staff have recently held discussions with the owners of SuperAmerica who are interested in constructing a SuperAmerica convenience store at the comer of Winnetka Avenue North and Bass Lake Road. During discussions, SuperAmerica stated that in order to build on the site, they would require additional land located at 5540 Winnetka and 7809 Bass Lake Road. SuperAmerica has asked the City if they would be willing to purchase the residential property at 5540 Winnetka to help facilitate the construction of a SuperAmerica. In response, an appraisal of 5540 Winnetka must be completed, If the City Council approves the appraisal, the owner of the property will be contacted to determine if they are interested in selling their property and if they will allow an appraisal of their property to be completed. If the City decides to acquire the property, the following funds may be used: $84,000 in CDBG acquisition/scattered site housing funds, EDA funds, and TIF funds, depending on the future use of the site. The 1995 assessed value is $91,000 ($20,500 land, 70,500 building). Because the City will be contacting the owner of 5540 Winnetka to determine if they are interested in selling their property rather than the owner contacting the City asking if the City is interested in buying the house, the City Attorney suggests that the City use a relocation specialist to work with the owner of 5540 Winnetka. Therefore, staff will be contacting Sandra Luegge, the Director of Relocation for Evergreen Land Services, to determine if relocation benefits will be required in this situation. Sandra Luegge advised staff about relocation benefits when the City was considering redeveloping the Bass Lake Road/Sumter Avenue North neighborhood. If relocation benefits are SECOND BY (~) Review: Administration: Finance: RFA-O01 ~ Request ~br Action 2 6-24-96 Staff is requesting authorization to obtain an appraisal on the property for comparison and negotiation purposes. The estimated cost of a single family residential appraisal from BCL Appraisals is $350 and will be paid for with CBDG funds. Staff recommends approval of a motion authorizing staff to obtain an appraisal of 5540 Winnetka Avenue North. · ST. THERESA ',. NURSING .7 gf~z/ N TY ROAD HOSTERMAN WINNETKA El:f ~,z.' ST. RA CATH( JR HIGH SCHOOL ELEMENTARY filet..4. CHU I SCHOOL ROVE, ' / '~ 4<:) PARK~ 55 TH AVE N ,3 5 TH ..~._. ;4.i'1.~ ~t~co e4''~ ~4,51 .4~ ~57 z~ ~ ~4~1 II~< ~'~[ e4~ R4U ST RAPHAEL EDA ~ REQIJEST FOR ACTION O~rigin.ating Department Approved for Agenda Agenda Section City Manager EDA Sarah Bellefuil'~?~"~"-24-96 Item No. By: Community Development Specialist By::~~ 7 RESOLUTION APPROVING LETTER O!~/UNDERSTANDING WITH TASKS UNLIMITED, INC., FOR LOAN TO PURCHASE HOUSING At the May 28 New Hope Economic DeveloPment Authority meeting, the EDA made a motion approving Tasks Unlimited as the owner and service provider for a special needs rental housing project to be located in the City. Also at the May 28 EDA meeting, the EDA directed staff to develop a Letter of Understanding with Tasks Unlimited which sets out the terms under which the EDA agrees to make a loan to Tasks Unlimited, Inc., for the purchase of a housing unit in the City. The loan amount provided by the City is for a $90,000 zero-interest, 30-year first mortgage. As stated in the Letter of Agreement, the EDA funds are to be used specifically for the purchase of a property in New Hope. In addition, NW CO-OP Community Revitalization Corporation has allocated $90,000 in 1995 HOME funds toward the project. The HOME funds will be a zero-interest second mortgage. The HOME second mortgage funds will be used for the purchase of a property in New Hope and any rehabilitation costs that may be required. In order for Tasks Unlimited to receive a loan through the City,. the EDA will approve the site to be purchased and review any major rehabilitation work to be completed at the site to insure its suitability. In brief, the Letter of Agreement states that the property to be purchased will be a duplex, twin home, or small multi-unit building that will house six to eight adults. Tasks Unlimited will be the owner of the property and will provide support services to residents. The residents will be adult persons with serious and persistent mental illness. Staff recommends approval of a resolution approving the Letter of Understanding with Tasks Unlimited, Inc., for a loan to purchase housing in the City of New Hope. c2 , - - / Review: Administration: Finance: RFA-O01 ~ JUN-19-96 ~ED 14~23 P, 02/06 , EDA RESOLUTION NO. 90- RESOLUTXON APPROVING LETTER OF UNDERSTANDING -- WZTH TA~KS UNLIMZTED, INC. FOR LOAN TO PURCHASE HOUSING _~, the Economic Development Au'lhorlty in and ?or the city of New Hope (EDA) will be encouraging special needs housing in the C~ty of NeW Hope (City), and WHERE~8~ CO-OP Northwest Community Revitalization Corporation (CO-OP Northwest) has received 1995 Federal HOME Investment Partnership Program funds which member cities, ~ncluding the City o? New Hope, uan use toward their affordable housing goals,and ~HFREAR, $go,o00 of the 1995 Federal HOME funds has been designated for special needs rental housing in the City, and ~HEREA&, after ~nterviewing service providers who own 'and manage special needs rental housing, the EDA staff is r'ecommending Tasks Unlimited, [nc., a Minnesota non-profit corporation, (T~sks Unlimited) ~o be ~he owner and service provider for special needs rental housing to be located in the C~ty~ and WHE_~, TasKs Unlimited ~s found to baa suitable provider of special needs housing for the C~ty~ based upon the ~Laff Interview and review process~ the proven track record o? Tasks Unlimited, and the recommendations of TaSks Unlimited from the Hennepin County staff &nd the Hennepin County Board of Commissioners, and WHE.REAS~ Tasks Unllmitea wishes to sign a purchase agreement :o purchase suitable housing in the City for use as a peer. supported group living facility for' six :0 eight adults with serious and persistent mental illness, and ~, Tasks Unlimited wishes to secure a commitment from the EDA for a $gO,OOO nu interest 30 year loan from the EDA before signing a purchase agreement, which $90,000 EPA loan shal~ be supplemented with up to $90,OOO of the 1995 CO-OP Norhtwes~ 1995 Federal HOME funds allocated [o the Cit¥, and WH~_R_~, the Letter of Understanding for Loan attached hereto as Exhibit A sets forth the details or such a loa~ commftment from the EDA to Tasks Unlimited, and provides for EPA approval of the ~ousing unit to be purchased and any rehabilitation plans for the unit, and WHEREAS, entering into sa~d Letter of tinders?ending wi~l hoop provide special needs housing in the City, is in the best interests of the City and its residents, and will fur:her the general plan of economic development. P, 03/06 JUN-19-96 NED 14:23 ....... NOW, THEREFORE~ aE IT RESOLVED Dy the Economi~ Development Authority in and rot the City of New Hope as fo]lows: I. T~;t the above recitals are incorporated herein by refererlfe. 2. That the Letter of Understanding for Loa~ attached hereto as Exhibit A tS approved, a~d the President and Executive Director are muthorized and directed to sign the Same on behalf of the EOA. ., Adopted by the Economic Development Authority In &nd for the City of New Hope this 24th day of June, 1996. Edw. d. Erickeon, President Attest: Daniel J. Donahue, Executive Director U - 9-96 t4:2 ....... ?,04/06, LETTER OF UNDERSTANDING FOR LOAN Date: June , 1996 Owner: Tasks Unlimited, [nc. 2419 Nicollet Avenue South Minneapolis, MN. 55404-3450 -, Lender: New Hope Economic Development Authnrity 4401Xylon Avenue North New Hops, MN 55428 Project: Special Needs Rental Housing New Hnpe, Minnesota TH[$ LETTER OF UNDERSTANDZNG (the Le~er) shall set forth generally the terms under which the Economic Oevelo~ment Authority In and for the City of New Hope (EPA) agrees to make a loan to Task~ Unlimited, [nc., a Minnesota non-profit corporation (Owner), for the purchase of a housing unit (Housing Unit) to be used for rental to special needs adults. 1. Proiect Object~.ve__$_. This project involves the purchase and establishment by Owner of a suitable Housing Unit lo allow six to eight adults with serious and persistent mental illness to l~ve in the Housing Un~ as ~enants in a peer supported group living arrangement. As part of the financing of the purchase of the Housing Unit, Lender shall provide to Owner a $90,000 1Den (the Loan) as set for'th In more aetail below. Owner, through its affiliate T&Sks Unlimited Mental Health Services, shall provide support services to residents of the Housing Unit during the term of the Loan. 2. Houatn~ Uni.t P~ramet~rs. The HOusing Unit to be purchased shall De~ eJt~er immediately after purchase or after remodeling or expansion planned as part of the pur-~hase, of sufficient size to house six to eight adults, each w~th their own bedroom, The Mousing unit shall be a duplex, side-by-side twinhome, or small multi-unit building'. The Housing Unit shall be located within the limits of the City of New Hope, The Housing Unit ~hall be used only a~ a peer supported group residence for ~dult persons with serious and persistent mental illness. Owner or ' JUN-19-96 NED 14:24 ?,05/06 its ~ffili&tes shall provida support services and mental heallh case coordination services to the Housing Unit residents. 3, Lo~n Oetaits. The Loan from the EDA to Owner shall include the following terms: A. The amount of fha Loan mhall bs SgO,O00.O0, with no interest (unless the terms of the loan are breached by Owner), to be repaid in equal monthly installments over a period of 30 years. B. The Loan shall'De secured by a first mortgage on Housing Unit. The proceeds of the Loan mhell be used only to purchase the Ho~min9 Unit. Any ~un~s necessary for improvements to or rehabllitatio~ of the Housing Unit Sh&ll De obtained from sources other than the EPA, C. As part of the purchase of the Housing U~it, the Owner shall qualify for and obtain a loan of up to $90,000 from CO-OP Northwest Community Revitalization Corporat~o~ using 1995 Federal HOME [unds, tO De used for the balance of the purchase price and any improvement or rehabilitation cmsts of the Housing Unit. D. Owner shall be required to complete any improvemsnt or rehabilitation of the Houming Unit in &ccord&nce with the p~ans and specifications approved by lhe EPA. E. Owner shall keep the pro~®rty insured, with coverages and amounts as reasonably required by the F. Memedies accept&Die to the EPA in the event of default by Owner, and other standard terms for a purchase money mortgage as roqui~ed by the EPA. 4. AnDroval by EPA ~f Pu~phaeff..and ~ehabiljtation. The EPA shall, in its so~e discr'etton, approve the purchase of the Housing Unit and any improvement or rehabilitation plans and specifications. If the EPA does not approve the purchase of :he Housing Unit and the improYemenL or rehabilitation plans and ~pecificattons, all in the EDA's sole discretion, the EPA shall have no obligation tn make the Loan. 5. Oocumenta)iQn. Owner shall sign all documentation required by the EPA for the Loan, including but not limited to a Loan Agreement, First Mortgage Note, and a First Mortgage. Owner shall provide all supporting documentation required by the EDA for the Loa~, including but not limited to evidence of title. 3U~-19-96 WED ~4:24 ?,06/06 O. Assignment. Owner shall not assign or transfer, whether by an assignment or novation or otherwise, any of its r'ights, duties, benefits, obligations, liabilities or responsibilities under this Le[ter or the Loan without the prior written consent of the EPA, wh~ch consent shall be given or withheld in the sole discretion of the EDA. 7. ~ndemn!f~cation. Owner agrees to indemnify ~he EDA and hold it harmless against all loss, liability, expense, or damages including but not limited to attorneys fees, which may arise by re,Son of a breach by Owner of any warranties or- representa~iqns ,contained in this Letter. a. Termination. This LetLer, and the EDA'S obligation to make the Loan, shall terminate if the purchase of the Housin~ Unit and the completion of the Loan are not closed w~thin 0 months of the date hereof, unless such deadline is ex~ended by the EPA. TASKS UNLIMITED, INC., a Minnesota non-protit corporation. By: · Its By: Its ECONOMZC DEVELOPMENT AUTHORZTY IN AND FOR THE CZTY OF NEW HOPE, a Minnesota municipal corporation. By: Its President By: Its Executive Director 3 FOR A I ION O~a~g Dep~ent Approved for ~enda ~enda Section Cffy Manager EDA ~-96 Sarah Belle~il Item No. By: Communi~ Development Specialist ~ ~ 8 MOTION ~PROVING TASKS UNHMITE C., TO SIGN A P~CHASE AG~EMENT FOR THE D~LEX PROPERTY LOCATED AT 2829/2833 FLAG AVENUE NOR~. ~ ~ S-0G ) On June 10, Ci~ stuff, Tas~ Uffi~ited stuff, and re~bilimtion s~cialists from Project for Pride in Living, visited a duplex located at 2829/2833 Flag Avenue No~ to demm~e if ~e prope~ is a potential site for a residemial s~le group care hcili~. 2829/2833 Flag is l~ated in a R-2 Single ~d Two F~ly Residential zo~g district. An R-4 Multihmily Residential zo~g dis~ct is l~ated to ~e sou~ of ~e prope~ and ~ R-1 Single Fmily Residential zoMng district is located directly to ~e east. ~e duplex was built M 1981 and is in fair condition. Each uMt in ~e duplex Mcludes two bedrooms, one MI1 ba~oom, a living room, diMng room, kitchen, and two car g~age. If Tasks UM~ited purchases ~e prope~, ~ey have stated ~at they would conve~ one of ~e g~ages imo two additioml ~drooms. Tasks UM~ited would also create a doo~ay between ~e two uMts M ~e front hall, al~ough bo~ ~tchem would be retaMed. TMs site is located near ano~er Tasks UM~ited residemial facili~ located M a sMgle family home in Golden Valley in a cul-de-sac off of Medicine ~e Road. This motion allows Tasks UM~ited ~e oppo~M~ to negotiate ~e purc~se price which is $145,0~. It also allows Tasks UM~ited to sign a p~chase a~eemem comMgem upon approval by the EDA. The EDA will also have ~e au~ori~ to approve any major re~bilimtion activities to take place at a Tasks UM~ited site. Staff reco~ends approval of a motion ~owMg Tas~ UM~ted, Inc., to sign a purchase agreemem for the prope~ l~a~d at 2829/2833 Flag Avenue No~. R~: ~~on: F~ce: ~A-O01 ~