041095 EDA Official File Copy
II
CITY OF NEW HOPE
EDA AGENDA
EDA Regular Meeting//5 April 10, 1995
President Edward J. Erickson
Commissioner W. Peter Enck
Commissioner Pat LaVine Norby
Commissioner Gerald Otten
Commissioner Terri WehIing
1. Call to Order
2. Roll Call
3. Approval of Minutes of March 27, 1995
4. Resolution Approving and Ratifying Awarding Contract for the Construction of
Handicap Accessible Twin Home at 7901-7909 51st Avenue North (Improvement
Project No. 505)
5. Resolution Authorizing and Approving Sale of 7909 51st Avenue North to T. Jeff
Bangsberg (Improvement Project No. 505)
Discussion Regarding Request for Condemnation to Provide Access to Landlocked
Parcel at 5000 Winnetka Avenue North
7. Update on "Shop New Hope" City-Wide Retail Promotion (Improvement Project
No. 537)
8. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
Approved EDA Minutes March 27, 1995
Meeting/t4
CALL TO ORDER President Erickson called the meeting of the Economic Development
Authority to order at 8:01 p.m.
ROLL CALL Present: Erickson, Enck, Otten, Wehling, LaVine Norby
Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, French
APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner
Wehling, to approve the EDA minutes of March 13, 1995. All present
voted in favor. Motion carried.
IMP. PROJECT 474 President Erickson introduced for discussion Item 4, Discussion Regarding
Item 4 City Owned Property at 7528 42nd Avenue North (Improvement Project
474).
Mr. Daniel Donahue, City Manager, stated in 1993 the City acquired the
Foremost property at 7528 42nd Avenue North for future redevelopment.
As part of the purchase agreement the City agreed to lease the property
to Foremost, Inc. for a two-year period. The terms of the lease required
Foremost to pay all real estate taxes, insurance premiums, utilities for the
operation, repair/maintenance/upkeep of the building, etc. The City has
had a difficult time in getting Foremost to pay the taxes on the property.
One unlawful detainer action was initiated which resulted in the payment
of the 1994 real estate taxes. The lease expires on July 19, 1995, and
the lease payment due on February 1 st was the pro rata share of the 1995
taxes ($10,010.00) which has not been paid. The City was in the process
of initiating another unlawful detainer action when we learned that, as of
March 3rd, Foremost was a defunct company. There is a new entity,
Phoenix Mfg. Corporation, interested in acquiring the assets (lease) and the
acquisition is contingent upon the successful assignment and extension of
the existing lease terms to the new entity/corporation.
Mr. Donahue stated the new company would like to enter into a similar
arrangement with the City and would pay all taxes due.
Hennepin County has informed staff that the City will be required to pay
the market rate taxes through the end of 1995 ($20,000 +) whether the
building is vacant or occupied.
The new company intends to get the company operating again and would
like to enter into an agreement through December 31, 1995, under the
same terms.
As the lease is currently written, it cannot be assigned or renewed without
New Hope EDA March 27, 1995
Page 1
the consent of the EDA. Northland Financial Group will be requesting the
EDA's consent on both issues. Northland has indicated that if the lease
is not extended per the original terms, that they will not pursue the
creation of the new entity. Also, the bank that holds the title to the
machinery in the building has guaranteed that they will pay the first half-
year's taxes.
Commissioner Enck asked if there would be any assurances that the City
would receive the money from the new enterprise,
Mr. Donahue stated most of the funds would be paid up front but as of yet
no final arrangements have been made.
Commissioner Enck asked what financial commitments and collateral
would be committed to the City to ensure that the taxes were paid through
December 31, 1995.
Mr. William Marceau, representing Northland Financial Group Inc., was
recognized. He indicated he began working with Mr. Fredendall last fall.
His company specializes in corporate finance and restructures. After 60
days he informed Mr. Fredendall that it would be best to seek a buyer of
the business with Mr. Fredendall staying on to manage the business.
Through efforts of Northland Financial Group, Phoenix Mfg. Corporation is
interested in purchasing Foremost, Inc.
Mr. Marceau responded to Commissioner's Enck question regarding
assurance of rent payments. He indicated there would be no collateral as
it would be like any other lease arrangement. The lease would be month
to month, quarterly, or semi-annual payments, depending on the City's
need to offset the tax liability.
Mr. Marceau stated the new entity would bring enough business to double
its previous size. A five-year projection reflected a very viable opportunity.
Commissioner Enck referred to the abutting properties, and inquired
whether Phoenix Manufacturing might be interested in utilizing the
properties for expansion purposes.
Mr. Marceau stated with the EPA problems on the site, he is hesitant to
address the issue at this time.
Mr. Steve Sondrall, City Attorney, stated to ensure that the City does not
become liable for property taxes payable in 1996, it needs to negotiate a
new lease after the July 19 termination date. He recommended that the
City receive the 1994 rent in one lump sum especially since the rent
equates to the taxes due.
Mr. Sondrall mentioned the terms of a new lease agreement and indicated
this will be presented at the first meeting in April.
New Hope EDA March 27, 1995
Page 2
The EDA reported favsrably on extending the lease to Phoenix
Manufacturing Corporation.
Commissioner Otten suggested updating the petitioner regarding the
condition of the additional lot for potential development.
IMP. PROJECT 537 President Erickson introduced for discussion Item 5, Update Regarding
Item 5 "Shop New Hope" City-Wide Retail Promotion (Improvement Project 537).
Mr. 'Donahue indicated a committee meeting was held resulting in many
ideas and suggestions. He asked for a report by Commissioner Wehling.
Commissioner Terri Wehling indicated the Committee decided to hold two
meetings in April. The merchants emphasized the need for a theme and
to make this an on-going event rather than just a one-time event. The
owners of the Shopping Centers were willing to contribute funds to add to
the seed money provided by the City.
Commissioner Norby pointed out that the landlords/owners must be
financially supportive of the campaign as merchants alone may not be
capable of financial contributions.
President Erickson indicated this campaign is an attempt to make residents
more aware of local businesses.
PUBLIC HEARING President Erickson introduced for discussion Item 6, Public Hearing -
IMP. PROJECT 505 Resolution Authorizing and Approving Sale of 7909 51st Avenue North to
Item 6 T. Jeff Bangsberg (improvement Project No. 505).
Mr. Donahue stated the public hearing is tonight but staff is recommending
that the EDA hold and close the public hearing but not act on the
Resolution until the April 10th EDA Meeting, which will be the same
meeting that the contract for construction of the twin home is awarded.
This will avoid approving a purchase agreement to sell one unit prior to
awarding the contract for construction.
CLOSE HEARING Motion by Commissioner Otten, seconded by Commissioner Wehling, to
Item 6 close the public hearing on the sale of 7909 51st Avenue North. All
present voted in favor. Motion carried.
MOTION Motion by Commissioner Enck, seconded by Commissioner Otten, to
IMP. PROJECT B05 postpone action on the resolution until the April 10 meeting. All present
Item 6 voted in favor. Motion carried.
IMP. PROJECT 50,5 President Erickson introduced for discussion Item 7, Resolution Amending
Item7 Declaration of Covenants for 7901 7909 51st Avenue North
(improvement Project No. 505).
Commissioner Norby noted her intent to abstain from voting on the item
only because it is visible from her home.
New Hope EDA March 27, 1995
Page 3
EDA RESOLUTION Commissioner Otten introduced the following resolution and moved its
95-04 adoption: "RESOLUTION AMENDING DECLARATION OF COVENANTS
Item 7 FOR 7901 - 7909 51ST AVENUE NORTH (IMPROVEMENT PROJECT NO.
5051." The motion for the adoption of the foregoing resolution was
seconded by Commissioner Enck, and upon vote being taken thereon, the
following voted in favor thereof: Erickson, Enck, Otten, Wehling; and the
following voted against the same: Norby; 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 8:31 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA March 27, 1995
Page 4
'~ I EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
4-10-95
Kirk McDonald ~ Item No.
By: Management Assistant By:~ 4
RESOLUTION APPROVING AND ING AWARDING CONTRACT FOR THE
CONSTRUCTION OF HANDICAP ACCESSIBLE TWIN HOME AT 7901~7909 51ST AVENUE
NORTH (IMPROVEMENT PROJECT NO. 505)
After the City Council awards the contract to construct the twin home at 7901/7909 51st Avenue North,
the EDA will be in position to approve the purchase agreement for one of the two units with T. Jeff
Bangsberg. The City Attorney has also indicated that it would be appropriate at the same meeting to
pass the enclosed Resolution by which the EDA simply ratifies the award of contract by the City for
the construction of the twin home, and authorizes its officers to .sign the contract.
Staff recommends approval of the resolution.
2,
Review: Administration: Finance:
I I RFA-O01 ~
EDA RESOLUTION NO. 95-
RESOLUTION APPROVING AND RATIFYING
AWARDING CONTRACT FOR THE CONSTRUCTION
OF HANDICAP ACCESSIBLE TWIN HOME AT
7901 - 7909 51ST AVENUE NORTH
Be it resolved by the Economic Development in and for the City
of New Hope (EDA) as follows:
1. That the EDA hereby joins with the City Council of the
City of New Hope to approve and ratify the awarding of the contract
in the amount of $189,808.00 for the construction of the handicap
accessible twin home at 7901 - 7909 51st Avenue North, Improvement
No. 505, to Equal Access Homes, Inc., authorizes the President and
Executive Director to sign the Building Construction Contract for
7901 - 7909 51st Avenue North as approved by the New Hope City
Counci], and to take such other actions as are necessary to
complete the construction.
Adopted by the Economic Development Authority in and for the
City of New Hope this day of April, 1995.
Edw. J. Erickson, Chairman
Attest:
Daniel d. Donahue, Executive Director
CORRICK & SONDRALL, P.A.
STEVENA.$ONDRALL ATTORNEYS AT LAW ~ECiILAS$iSTANT5
MICHAEL R. LAFLEUR Edinburgh Executive Office Plaza LAVONNE E. KESKE
MARTIN P. MALECHA SHARON O, DERBY
WILLIAM C. STRAIT 8525 Edinbrook Crossing
Suite #203
Brooklyn Park, Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 425-5B67
&pr1! 5, ~995
~r. Daniel J. Donahue
Executive O~rector
EDA in and foF the City of New Hope
440! ×yion Avenue North
New Hope. MN~ 55428
RE:7901 - 7909 51st Avenue North
Our F~le No: 99.i1124
Dear bari'
With the awarding of the con[fac( ~o construc~ the ~w]n nome at
79Ot - 7909 51st Avenue North, the EDA wit1 be in position to
approve ~he purchase agreement for one of fhe two units of the twin
home with dele 8angsbeFg. The Resoiuz;on ~u~noriz]ng and approving
the sate previously provided ~o you wiil be sufficJen~ for tha~
purpose. [t would also be appropriate at the same meeting to pass
the enclosed Resoiution by which the EDA simply ra~ifies the Award
of conzFact by the City of New Hope for- the constr'uction of the
twin home, and authorizes its officers to sign the contracz.
D
o not,hesitate to contact me if you have any questions.
Since[; .t
Martin P. Ma]echa
s3w
Enclosure
cc' Valerie Leone (w./enc)~THtS COPY ¢0~'--3'~
Steven A. SondrA]}, Esq.
EDA
REQUF~T FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
4-10-95
Kirk McDonald t'"') Item No.
By: Management Assistant By:~OVI 5
RESOLUTION AUTHORIZING AND APP NG SALE OF 7909 51ST AVENUE NORTH TO T.
JEFF BANGSBERG (IMPROVEMENT PROJECT NO. 505)
At the March 13th Economic Development Authority meeting, the EDA authorized publication of notice
and the holding of a public hearing at the March 27th EDA meeting regarding the sale of one side of
the twin home to be constructed at 7909 51 st Avenue North. This is the public hearing to authorize and
approve the sale. On March 27th the EDA held and closed the public hearing, but postponed action on
the resolution until this meeting to avoid the timing issue of approving a purchase agreement to sell one
unit prior to awarding the contract for construction. Bids for the construction were opened on April 4th
and will be considered at the April 10th EDA meeting. If the EDA awards the bids for the sewer/water
and twin home construction work, staff recommends that the EDA approve the resolution authorizing
the sale to T. Jeff Bangsberg. Mr. Bangsberg will be in attendance at the April 10th meeting so that
EDA members can meet him and so he may respond to any questions you may have.
Lots 1 and 2, Block 1, Marky Addition, were purchased by the EDA in February, 1994. Subsequent
to the purchase of the property, the existing structure was razed and staff has been working with the
CO-OP Northwest Community Revitalization Corporation to improve the property with a handicap
accessible twin home to be sold to persons of low or moderate income. The project has progressed to
the point of a signed purchase agreement for one of the two units with T. Jeff Bangsberg. (The other
unit is not yet sold, but eligible applicants are in the application/screening process and staff is confident
that the other unit will be sold.) The purchase agreement is contingent upon approval of the EDA. The
purchase agreement incorporates the plans and specifications for the twin home to be constructed on the
site. The buyer has qualified for a first time home buyer mortgage with the Minnesota Housing Finance
Agency, as well as a second mortgage in the amount of $15,000 using CHODO Home Investment
Partnership funds. The purchase agreement states that the City will sell the home to Bangsberg for
$85,000. Per the enclosed budget, the project will be financed with the proceeds of the sale of the
homes, second mortgages provided by CO-OP Northwest with federal HOME funds, and
CDBG/scattered site housing funds.
Staff recommends approval of the resolution by the EDA Authorizing and Approving the Sale of 7909
~1 ~t Avenue North to T. Jeff Ban~sbere (Imr)rovement Project No. 505~.
Review: Administration: Finance:
I RFA-O01 ~
EDA RESOLUTION NO. 95-__
RESOLUTION AUTHORIZING AND APPROVING
SALE OF 7909 51ST AVENUE NORTH TO
T. JEFF BANGSBERG
WHEREAS, the Economic Development Authority in and for the
City of New Hope (EDA) owns certain real estate known as 7901 -
7909 51st Avenue North, legally described as:
Lots 1 and 2, Block 1, Marky Addition, Hennepin County,
Minnesota,
(the Property), and
WHEREAS, the Property was purchased by the EDA in February of
1994, and
WHEREAS, at the time of said purchase the Property was
determined by the EDA to be blighted by reason of delapidation,
obsolescence, and faulty arrangement or design, and
WHEREAS, subsequent to purchase of the Property the existing
structure was razed, and the EDA staff has been working with
Hennepin County and Minnesota Housing Finance Agency to improve the
Property with a handicap accessible twinhome to be so3d to persons
of low or moderate income, and
WHEREAS., the EDA staff is in the process of obtaining bids and
awarding a contract for construction of the twinhome on the
Property, and
WHEREAS, the EDA has entered into a Purchase Agreement with T.
Jeff Bangsberg for the purchase of Lot 1, Block 1, Marky Addition,
a copy of which Purchase Agreement is attached hereto as Exhibit A,
and
WHEREAS, said Purchase Agreement is contingent upon approval
of the governing body of the EDA, and
WHEREAS, the EDA has the authority to sell the property under
Minn. Stat. §§469.001, 469,105 and 469.029, and
WHEREAS, on March 15, 1995 notice was published in the New
Hope-Golden Va13ey Sun Post regarding a public hearing on the sate
of 7909 51st Avenue North, and
WHEREAS, the sale of Lot 1, Block 1, Marky Addition to T. Jeff
Bangsberg is in the best interest of the City of New Hope and its
people and furthers its general plan of economic development.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of New Hope as follows:
1. That the above recitals- are incorporated herein by
reference.
2. That the sale of Lot 1, Block 1, Marky Addition to T.
Jeff Bangsber9 in accordance with the terms of the
Purchase Agreement attached hereto as Exhibit A is
approved.
3. That the President and Executive Director are authorized
and directed to sign a deed and any other documents, and
to take such other action, as needed to complete the sale
of Lot 1, Block t, Marky Addition to T. Jeff Bangsber§ in
accordance with the terms of said Purchase Agreement.
Adopted by the Economic Development Authority in and for the
City of New Hope this day of , 1995.
Edw. J, Erickson, Chairman
Attest:
Daniel d. Donahue, Executive Director
MINNESOTA STANDARD'RESIDENTIAL PURCHASE AGREEMENT
~_ ~ 1988, by Hennepm County Bar Associating, MinneapoliS. Minnesota.
BEFORE YOU USE OR SIGN THIS CONTRACT. YOU SHOULD CONSULT WITH AN ATTORNEY TO DETERMINE THAT TI~tS ~GNTRACT
ADEQUATELY PROTECTS YOUR LEGAL RIGHTS. Hennep~n County Bar Association disclaims any lia0dity ansmg out of use of th~s 'orm
1, PARTIES, Th~s Purc~lase Agreement ~s made on 19 g¥ and oetween
,~,~~ {Name)
~ , , ,marital status)
-- /"- ~ (Address) _ ;D "z' ~ - ' SELLER AND
~ (Ad~) - ' ~ / / ~ ~ - ' ' BUYER
6 2. OFFE~ACCE~A~[ Buyer offers to purchase and Seller agrees to sell real Droperty legally descnDe~ as
'9 Cl~ o~ ~'~ , ,[;; 4, Coun~ of -- , ' State of Minnesola
'~ 3. AcCE~A~E~[This~e~t~purchase.un~essacce~te~s~ner'sha~benu~andv~idat11:59PM.
~2 ~date) .LJ~.~ ~ .'.:J and in suc~ ~ent all earneet money shall ~ refunded to Buye[
13 4, PER~NAL ~PE~ A~ R~RE8 I~LUOED IN 5ALE. ~e fol~wi~ items of ~r~nal pro~ and fixtures owned b~ Seller and
~ 4 .~ I~t~ on ~ ~ am i~1~ in th~ ~le [ Str,'ke }ut ~tems not *nc~ude~: ~ plan~, shrubs, t~s,.~m wmdo~ a~ -
~ ~ 5 v~~, ~r~, - ~, affac~ ligming figures wi~ bulbs, plumping fixtures,
' 17 i~ units. ' ' ' au~mafic g~e ~ ~ ~ c~l~ " -~~bui~-in dishwashers, garbage
18. di~s.
22. 5. pffi~E~~f~~~i~in~is~
25. ~ ~ ~ ia ~ ~ (~ ~ ~ ~ ne~ ~ d~ aff~ ~n~t.~m ~ I~ ~k~. unless ome~ise
26. ~~)~$ &d--)~.~ ~ ~ueu~-'J~ .~'~ ~e DATE OF CLOSING.
32. (C)~~~~~
35. ~~~(~~~.)
38. t. ~~T~~~~~~i~f~oJc~mag~l~pmrat~
42. [ ~ ~
~. ~~' :~,~...
~. [$~eo~'~~~~~~~i~ ~t~deteof~is
47.
49. ~ m~~ ..... ~' - ........ ,
'7o. -- ' . .... --=' -'~-=~ .......... :- '- ~ --: ~-- ---- ~-~
71 - ' - --~~~~~(YE~c~wat~
72.
EXHIBIT "AII : 74.
75. ~ ~ ~ ~~ ~ ~ ~ ~ 10-~ ~ ~ ~ ~ ~ ~ ~ ~. pmvid~ that
78. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~. U~ ~ ~ ~ m~ r~ula~ns,
MINNESOTA STANDARD RESIDENTIAl. pURCHASE AGREEMENT/PAGE 2
11. DISCLOSURE OF NOTICES. Seller has not recelve~ any not,ce from any governmental authonty as to vtotauon of any law ordit~arlce or
lion. if the prooerty Is suDfect to restrictive covenants, Seller has not rece~veQ any notice from any person as to a rweach of :he coveranls
12. TRUTH-tN-HOUSING. ~uyer acknowledges recetpt of the Truth-m-Housing O~sclosure Report or other inspection rel:x)r~ If reQu;red I~y ~e munic-
~pality ~n which the proper(y ~s IocatecL
-~6 13. POSSESSION. Seller shall deliver D~sses~i~n of the Properly not later than ' £ ~ ~ : - -,~ · '.
67 Closing. All ,nlerest. fu~_l od, lio~id.~::~trotaum gas. and ail charges for city water, city sewer, etectnclty, and natural gas shall De prorated Detweer~ :~e
98 partmsasof .,:tgo_ O_ ._'_.
99 14. EXAMINATION OF TITLE. Within a reasonable time after acceptance of this Agreement Seller shall furmsh Buyer w~th an Abstract of Title or a
~3 Registered Property Abstract cerlified to Mate including proper searches covenng bankruptcies and State and Federal ludgments. I*ens. and lewed
~ 1 ami pending speciel assessments. Buyer shall have ten (10) bus, ness days after receipt of the Abstract of Title or Registered Propen'y Abstract e*ther
92 to have Buyers aMorney examine the t~tle and prowOe Seller w~th whiten objections or, at Buyer's own expense, to make an application for a Title
93 insurance Policy and notify Seller of the application. Buyer shall have ten (10) bus,ness days after receipt of the Commitment lor Title insurance
94 provide Seller with a copy of the Commitment and written obiections. Buyer shall be deemed to have wawed any title objections not made w~thm the
95 applicable ten (10) day penod for above, except that this shall not operate as a waiver of Sellers covenant to deliver a statutory Warranty Deed, unless
96 a Warranty Deed is not specified above.
97 1S. TITLE CORRECT1ON~ AND REMEDIES. Seller shall have 120 days from receipt of Buyer~ wntten title obleCtions to make title marketable, U0on
98 receipt of Buyer~J title oOtections, Seller shall, within ten (10) business days, notify Buyer of Seller~ intention to make t~tle marketable w~thin the 120
99 day period. L~ens or encumbrances for liquidated amounts which can De released by payment or escrow from proce~KJs of closing shall not ~elay the
~C0 closing. Cure of the defects by Seller shall he reasonable, diligent, and prompt. Pending correction of title, all payments redu~red herein and the
!01 closing shell he pos~x~necl.
f 02. A. If notice is given an<t Seller makes title ma~ataOle, then upon presentapOn to Buyer and proposed lender of documentation establishing that
~03 title has been maxJe marketable, and if not oOjected to in the same time and manner es the odginel title objections, the closing shall take place
104 within ten (10) bUS~nees days or on the schedule<t closing date, whicttever is latec.
~05 B. If notice is given ami Seller i~oceeds in good faith to make title marketaOle I~Jt the 120 day perkx~ ex0ires without title being made marketable,
106. Buyer may declare this Agreement null and void by not,ce to Seller, neither party shall be liable for damages hereunder to the other, and
~ 07. earnest money s~all be refunded to Buyer.
108. C. If SetlM d~:~es not gwe notice of intentio~ to make ittte marketel~le, or if noitce is g~Ve~ but the 120 day period expires without t~tle ~eing mape
109. marketable due to Setler~ failure to proceed in good faith, Buyer may see~, as parroted by law, any one or more of the following:
1 t O. I. Procee~ to closing wiM'~vat waiver or merger in the dee¢l of the object--ns ~ Mite and without waiver of any remedies, and may:
t 1 t (a) Seek dareages, costs, ~h'om Seller as permitted by law (damages under this subparagraph (a) shall
t 12. be limited to the cost o! cunng o~ections to title, and consequential damages are excluded); or,
~ 13 (b) Undertake proceedings to correct .the o~jections to title;
t 14. 2. Resc~SS~o~ of this Pun~ Agreement by not,ce as prov~ed here~n, in which ca~e the Purchas~ Ac~t shall be n~ll and void
1 ~ 5. and all earnest money paid hereunder shell be refunded to Buyer;
116. 3. Damages frore Seller including costs ~ a~ permuted by law;.
117 4. Soe~fic pedormance within six months after such ngllt of action ansee.
118. D. If ittle is matkata/Me, or ia made mankatel:~e as pmvidecl here~n, and Buyer dMault,, in any of the agreements herein, Setter may elect either of
119. the foltowing options, se pem'utted by law:
120. 1. Cancel thia contract as provi~t~l by stafule and retain all payme~ made hereunder as liquidated damages. The parties acknowledge
121. the~ intention that any note gWen pursuant to this contrmC~ ia a down payment note. and may be pmasnted for pe~ notwithstanding
122. cancellatton;
123. 2. Seek specit~ pel~:xmance ~ six rnontl~ after seGtt right of actioo at~as, including coa~ ~g3~C~l~ as
124 pen~itte~ I~ law.
125. E. tf title i~ m~, or ia made mert~e~el~le a~ i:~ovided herein, and SMier defaull~ in ar~/Of t~e agresments heroin, Buyer may, as permitted by
126. law:
1~.' ~Ait nolk:e~mquimdhemto~lall:~em writing an¢ldelivemdl:~rsonelly or melted to the addmas asatx~wn at Paragraph 1., above and
f33~
134.
,4A. eCL-'O~nC.~_ Se.L[e~ ~ ~ .ch ~e~'eee~c. I:o Che ocher ~lat r. hey have~ea~a~e~ no
14~ [co ~ I;bea tn ~bis M~te/pu=cbaae, 8ad ~ellec 3X~L ~ as~ae :o L~t~TLtfy
~: hold ~ oct~ baizes. ~ a~ c1~ o~ ar~ =ea~ es~ o= och~ ase~
SEU.F.~ F.,concz~c Dev,e.t~t ~.~tho~icy Ku a,,'~ for
Cj. Cy of.-~v HOpe ,o,,.
~ .bM be at the, office Of¢:
C~ Nm City. Zip.__
FHA ~N~U~D
R~L~R~ Mimme~ ~on of R~L~RS~
di~iams ~ li~ili~ ari~ng out of u~ or mlsu~ of [~s ~rm
1. Date ~ 3, [995
2. Page [ of [ Pages
3. ~dendum to Purchase Agreement baleen pa~ies dated ~ 3 1995 pe~aining to the purchase
4. and sale of t~e prope~y at 7909 51s~ Avenue ~o. t ~ev ~o~--~ ~
5.
6. B~l.~.~or aha secure at Buyer's expense an FHA INSURED mo~gage in the amount ~
7 ~ amo~izea monthly over a per,od of not more than 30 years with interest at no more
8. than ~. 1~ percent per annum, ~de~ [he ~i~sC C~ ho~ buTe= p~o~ ~Ch ~A.
9. MOP,GE APPLICATION: The mo~gage application IS TO BE MADE WITHIN FIVE BUSINESS DAYS a~er the
acceptance of th,s Purchase Agreement. Buyer agrees to use ~est efforts to secure a comma[mere for
SuCh financing an~ ~o execute ail ~ocumen~s required ~O consummate saia financing. In ~ne event Buyer cannot secure
a comm~mem for sa~a reD,gage, ~his agreement snail become ~ulJ An~ void ana earnest money paJa Dy the Buyer s~ail De
refunaea [o Buyer; Buyer aha Seller agree to sign a CanCellation of Purchase Agreement.
MOP,GE INSURANCE PREMIUMS: Pumuant to Federal Regulations, a one time MoOrage Insurance Premium (MIP)
must ~e ga*a at ~ne closing of ~h~s transaction, ft is understooa by Seller and Buyer this Purchase Agreement ~s
suDlec~ to t~e one ~*me Mo~gage InsUrance Premium. as applicable and aetermine~ ~y the lender. The sa,a Moorage
insurance premium wdl increase the mo~gage amount unless pa~d in cas~ at the closing. Th~s prows~on may not De
~pticaDle to condominium transactions.
19. DISCOUNT POINTS: Moorage discount ~ints not to exceed ~.0 % of the total of the mo~gage amount including
20. MIE if add~ to mo~gage, shall ~e paid ~ follows:
21. 0 paid 0y Buyer. ~OTE: Do not exceed maximum Seller
~. ~~,0 paid by Seller. contribution allow~ by FHA.
23 ~CKIN~OATING OF MO~GE iNTEREST RATE AND DISCOUNT ~IN~: Seller and Buyer agr~ the mo~gage
24 mtere~ rate an~ ais~unt ~mts snalt ~e LOCKED / ~ on the d~e of application.~
26 ....
27 ' ' In the ~ent the ~i~unt ~,n~ char~ ~y
28. the tender a~ le~ than the a~ount ~in~ agr~ to A~ve, the di~unt ~in~ ~1 ~ charg~ to ~
~A COMMITMENT WORK ORDERS: N~hing in this Purch~e ~r~ment shall ~ con~m~ ~ a w~r[[n~!hat the
31 Seller will make repaim requir~ ~y the FHA commitment. Noweve~ the Seller ag~es to pay up to S
32. to make repa~ as required Dy the FHA commitment tf t~e FHA commitment is su~j~ ~o any work or,ers for w~cn me
33. ~ Of maAing ~a rep~m s~all e~e~ this ~ount. the Seller anal have the foil~ing options:
(A) M~ing the nece~a~ repai~; or
35. (B) N~tiating tAe co~ of making said repai~ with the. Buyer; or
36. (C) Declaring t~e ~flase Agreemen~null and void and earne~ money paid shall be refunaea to t~e Buyer;
37. Buyer and Sell~ to sign a Cancellation of the Purchase ~r~ment.
~ LENDER PR~ES~ ~E~i S~ler agrees to pay mi~ellAn~us processing f~s which the lender cannot charge
39. m Bu~, n~ to e~ ~ L~.~
40. - ..............
42 - ' ~-- ~=-~--~=~
43.
45. ' "' ' ~'.~-"
47. "THE APPRAIS~ VALUATION IS ARRIVED AT ~ DETERMINE THE M~IMUM MO~AGE THE DEPARTMENT
OF HOUSING AND UR~N DEVELOPMENT WILL INSURE. HUD DOES Nc WARRANT THE VALUE OR THE
~NOITION OF THE PROPE~. THE PURCHASER SHOULD ~TIS~ HIM/HERSELF THAT THE PRICE AND
~NOITION OF THE PROPE~ ARE ACCE~ABLE/'
51. ~ ~ s~ ~ apply for ~ se~e a ~~rt~ ~ ~ ~ of $15,~.(
~ ~Cy ~ ~velo~[ ~=i~ (~) ~ Inves~C P~s~p ~
54. ~ City of New
THiS IS a LEOALLY lINDIN GONTRA~r
55. ~N:F,~,FN~ (S'~4) fF YOU DE. HE LE(~. O~ TAX ADVICe, CON~UI..T
CSM 11~
AMENDATORY CLAUSE , ~.. J
It is expressly agreed that notwithstanding any other provisions of this contract,
the purchaser sl~all not be obligated to complete, the purchase of the property
described herein or to incur any penalty by forfeiture of earnest moneydeposH:s or
with
otherwise unless the purchaser has been given in accordance UD/FHA or
H
VA requiremenZs a written statement by the Federal Housing Commissioner,
Veteran's Administration, or a Direct Endorsoment Lender setting fourth the
appraised value of the property of not less than $ 85,000.00 . The
purchaser shall have [he Drivilege and oDtion of proc~d'ing with consummation of
the contract without regard to the amount of the appraised valuation. The
appraised valuation is arrived at to determine l. tle maximum r~ortgage the
Department of Housing and Urban Development will insure. HUD does not
warrant the value nor the condition of the property. The purchaser should satisfy
himself/herself that the price and condition of tile Prol3erty are acceptable.
NOTE: The dollar amount to be inserted in the amendatory clause is the sale price
as stated on the contract.
RE: FHA Case No.
The following individuals or firms each hereby certify that the terms of the
contract for purchase are trtle to each signer'.~ best knowledge and belief, and that
any other agreement entered into by any of these parties to the t~ansacflon is
attached to the sales agreement.
SE'LLER -ExeCUt~'~e DJ. sector: o~ t:he DATE
Econoad. c Develot~eaC Aul:ho=it7
n~ Fn~ r_h~ C.~v of New }{ope
SE R ' DATE
- , ,,- I ,
BUYER DATE
BROKER/SELLING AGENT DATE
FHAAMENC 1193
ADDENDUM TO PURCHASE AGREEMENT
This is an Addendum tO teat certain Purchase Agreement dated
March 3, 1~9~, by and between the Economic Development Authority
end for the City of New Hope as Seller and T. Jeff Bangsberg as
Buyer regarding certain proper~y Known as 7909 51st Avenue North,
New Hope, HenneD~n County, Minnesota. ~eller and Buyer hereby
1. Conf[~..CtS, [f there are conflicts between the language
of this Addendum ~nd the Purchase Agreement, the language of th~s
Addendum shall control.
~. ~,~.~. Buyer's interest ~n the Purchase Agreement
may not be aold~ assigned or transferred in any m~nner whatsoever.
3. ~]_I.E. Seller certifies that Seller doe~ not know of any
.. wells on the deeGribed real property.
4. .E.~enctn~. This Purchase Agreement is contingent uDon
~uyer qualifying for a first mortgage through Marquette Bank using
the MHFA First Time Home Buyer Progr'am, and also quallfyln~ for a
secon~ mortgage using CHODO Home Funds, al1 as detailed in the
a~tached F~nancing Addendum. Zf Buyer does not so qualify, thi~
~urchase Agreement shall be null and void.
5. Construct,.on ~f Dwelltn,. By this Purchase Agreement,
auyer will be purchasing real estate that by closing will be
improved by Seller wlt~ one dwelling unit of & t~ ~welllng unit
twin home. Seller agrees, through its agents or employees, to
construct one dwelling unit on the real estate in sccordanoe with
the plane and specifications an set forth in the attached Addendum
1.
6. ~hanee Ordere. Any ch&ngee in plans and spectftcattonm
set forth in Addendum 1 shall )e allowed only uDon written
authorization by both Seller and Buyer. [f the change order will
require the furn~eh~n9 o( extra labor or matertale, Buyer shall pay
Seller for the addiit~nal cost of the laOor or materials
increasing t~ePurchass Price or some other method acceptable to
Seller. A cha~ge order reducing the dost of labor or materials
will not result in & Purchase Price reduction,
7. ~. Any items listed as options in the plans and
sOeciftoatione attached aa Addendum t shall be considered a chaqge
order requiring the. furnishing of extra labor or materials ~nd
shall not be included in the construction w(thout following
procedure for change orders set forth above.
a. Landacao~n~. Landscaping ~hall be completed by clo~ng
by Seller or ils agents in accordance with the Landscaping Plans
attached hereto as Addendum 3,
). Closing Del~. In the event of delay, the time of
completion of the construction anU closing shall be extendeU for
such reasonable time ms needed .to complete construction of the
dwmlling. Seller shmll hay® no limbilit¥ to BuTmr for anF such
Uelay.
10, ~, At tho closing Seller shall ~soign to Buyer
all warrar~tiee which Seller cmn assign t~at are associated wit~ the
dwelling and its contents, including &11 aooliances.
ii. Oancellation Oution. Buyer shall have a 24-hour perioU
beginning at the o~ening of the bids Seller receives for
construction o~ tho dwelling on the property, in which to declare
thim purchase ~groement null and void by delivering ~ writing to
~hat effect to ~e31er. XY Buyer Uoes not so declarethts purchase
agreement null and vo~d by delivering such writing to Seller, ~uyor
~nd Seller shall proceed to ~er~o~m thio ~urchaae agreement. ~
Buyer does deGlaK~ this purchase agreement null and vote, 8uyer ann
Seller shall each execute a c&ncellatton o~ this Ourehase agreemen~
and all oarneet money sh&ll be refunded to Buyer.
OateQ: , 1995, ECONOMIC DEVELOPMENT AUTH~M[T~
IN AND'FOR THE CZTYOF NL=WHOPE,
Se~ler
~'[~ti ExicOtive Otrec~or
The following estimated amounts are for both units combined -- April 1, 1995
Expenditures Anticipated Actual
Acqui.~ition/site preparation $ 42,000'.00 $ 46,817.00
'Construction (1274 sq. Ft.) $170,000.00
[T~ompsonAssociates (HOME funds) $ 1,000.00 $ 1,000.00
Closing costs/legal $ 3,000.00
Appraisal fees $ 1,000.00
Sewer/water street connection $ 10,000.00
Sewer and Water cut off $ 550.00 $ 550.00
i Landscaping $ 5,000.00
Seal well $ 225.00 $ 225.00
Title Insurance $ 325.00 $ 325.00
Plat fees ( 7109 62nd & 6073 Louisiana) $ 900.00 $ 900.00
Misc. (Utilities, taxes, site upkeep) $ 1,000.00 $ 1,226.00
CRC Development fee (HOME funds) $ 4,000.00 $ 4,000.00
TOTAL $ 239,000.00 $ 55,043.00
Revenues
Proceeds from sale of twin home $140,000.00 ($70,000 per unit 1st mortgage)
HOME funds o $ 40,000.00 (two $15,000 2nd mortgage/S5,000 grant)
HOME soft costs (marketing and dev. fees) $ 5,000.00
EDA Housing funds $ 24,000.00
CDBG Scattered Site funds $ 30,000.00
TOTAL $ 239,000.00
Homeowner Requirements
($70,000 unit (at 7.5%) and $15,000 second mortgage)
Cost per month (principle, int., taxes, insurance) $ 672.62
Annualincome required.. $ 27,876.00
Monthly income required $ 2,323.00
h:~housing~5009bud4.xls
Page 1
Suite ~203
Broo~ Park. Mi~esom 55443
March 22, 1995 ~ ~ ' ~
Daniel d. Oonahue
Exeoutive Director
New Hope EPA
~A01Xylon Avenue North
New Hope, MN 554~8
RE' 7901 - 7909 51st Avenue North
Our File No: 99,11124
Oear Dan'
The handicap accessible Twinhome project at 7901 - 7909 has
progressed to the point of ~ signed purchase agreement for one of
~he two un,ts. That purchase agreement lS contingent upon
by the goYern~ng body o~ the EDA. The purchase agreement
~ncorpor&tes the plans and specifications fo~ the tw~nhome to be
constructed on the s~te. The buyer w~3 be qualifying ~Or a f~rst
t~me home buyer mortgage wlth Minnesota Housing F~nance Agenc¥~ as
well as a second mortgage in the amount of $15~OOO.OO using CHOOO
Home Znvestment Partnership funds, The eno3osed Resolution
ap~ovea the purchase agreement.
There fs a t~m~ng {ssue here invo3vi, ng EPA approYal of the purchase
agreement and the actua3 award of the bids to ~onstruct the
twinhome. You may wish to c30se the pub3{c hear~n9 on the
Resolution a~prov~ng the sa3e, but not act on the Resolution unt~
the Apr, 3 10, 1996 meeting, which will be the same meeting that the
contracts fo~ construction of the tw~ho~e are awarded. ~n this
manner ~he EPA W~ avoid approving a purchase agreement to
one unit ~f the twlnhome for a fixed prtoe w~thou[ know~ng,how much
~{ w~33 ~tua~ly cost to construct the tw~nhome.
I've second Reso]ut~6n mod{f{e~ the ~ovenants passed ~n FebF~ary so
.~ to delete two provisions which raised some enforcement issues
with staff. The deleted Covenants ~vo3ved p3acement of
vehicles ~nd other ~tems in the d~vew~y, and the lo~atton and type
of antennas on the property. After further review it appears these
~tems a~e adequately covered by City Code. This Resolution can be
passed on M~rch 27.
Mr, Oanlel J, Donahue
March 22, 199S
Page 2
Please call me if you have any questions.
Sincerely,
Marttn P. Malecha
s3w2
Enclosure
cc: K~r~.UoDona~d
Ser&h Bel~efu~l (w/eric]
Valerie Leone
Steven A. ~ondra11~ City Attorney
'~ I EDA
} REQUF~T FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
4-10-95
Kirk McDonald ~ Item No.
By: Management Assistant By:7/ 6
/
DISCUSSION REGARDING REQUEST FOR CONDEMNATION TO PROVIDE ACCESS TO
LANDLOCKED PARCEL AT 5000 WINNETKA AVENUE NORTH
Brad Hoyt of Hoyt Development has met with City staff to preliminarily discuss his plan to develop the
balance of his property on either side of the Navarre building located at 7400 49th Avenue. The two
parcels include the parcel east of the Navarre site/west of the Ice Arena, which has access onto 49th
Avenue, and the Outlot site located between 5000 Winnetka Avenue and the Navarre building (see
attached map). The Outlot site has no access to 49th Avenue and Hoyt states in the attached
correspondence that as a prerequisite to development of the three acre outlot parcel, the site will need
to obtain access through the old lacobwith property (now owned by Navarre Corporation).
Hoyt requests that the City consider his letter as a petition for the City to condemn a portion of that
property, the width to be determined, in order that a landlocked parcel could be served and developed.
He states that if the City is required to acquire the entire parcel, he would agree to repurchase the
excess land at the City's cost. Hoyt indicates that due to his association with a party to litigation with
Navarre Corporation, he cannot simply purchase the access through private negotiation.
The City Attorney has reviewed the correspondence and has prepared the enclosed letter addressing this
request and staff are requesting direction from the EDA. While staff wants to be supportive of both
Hoyt's potential development and the newly established Navarre Corporation, staff does not want to
become involved in the litigation between the two parties.
MOTION/~m SECOND BY
Revl ew: Administration: iv inane e:
~ RFA-O01 ~
Hoyt Development
C O M P A N Y
13400 15th AVENUE NORTH, SUITE F
PLYMOUTH, MINNESOTA 55441
March 17, 1995
Mr. Kirk McDonald
City of New Hope
4401 Xylon Avenue North
.New Hope, ~ 55428
~: New Development
Dear Kirk:'
Thank you for taking the.time to meet with me last week to
discuss my plan to develop the balance of the.property on
either side of the Navarre building. I have directed the
architect to bring the drawings to s~mission stage for
submittal. As a prere~isite to development ofthe three
acre parcel between 5000 Winnetka Avenue and 7400 49th
Avenue Nroth the site will need to obtain access through the
old Jacobwith propgrty.
T~erefore would you please consider this letter a petition
for the. City of New Hope to conde~ a portion of that
pr°pertY~ the wid~ to be dete~ined, in order that the
landlocked parcel may be se~ed and developed. If the city
is re~ired to ac~ire the entire Jacobwith parcel we agree
to repurchase the excess as well at the city's cost.
As a side note we believe the s~ject parcel is owned by
Navarre Co~oration or'it's officers. ~e. to our
.association with a'party to litigation with Navarre
Co~oration we cannot simply purchase the access through
private negotiation. Due to the onset, of the construction
--season we wbuld appreciate the City's earliest
consideration. Thank you for your cooperation and
assistance.
President ....
cc: LuAnn Petricka
DEVELOPMENT · CONSTRUCTION ' MANAGEMENT ' INVESTMENT
CORRICK ~ SONDRALL, P.A.
STEVENA. SONO~A~ ATTORNEYS AT LAW ~,,T*,?,
MICHAEL R. ~FLEUR Edinburgh Execu~ve Office Plea LAVONNE ~ KESKE
MARTIN P, MALECHA SHARON D. DERBY
w~L~ c. sTR~ 8525 Edinb~ook Crossing
Suite ~203
Brookl~ P~k, Minnesota 55443
TELE~ONE (612) 4~.5~1
FAX (6~ 2) 42~S8~
March 29, 1995
Mr. Kirk McDonald
Management Assistant
City of New Hope
4401Xylon Avenue North
New Hope, MN 55428
RE: March 17, 1995 Hoyt Development Letter
Subject: Petition for Access Condemnation
Our File No. 99.10000
Dear Kirk:
This letter will confirm our recent telephone conversations
regarding Hoyt Development's March 17, 1995 letter requesting the
City to condemn a portion of the Jacobwith property to provide Hoyt
with access to landlocked property at 5000 Winnetka Avenue.
The letter is a little bit confusing. I am assuming that it is a
request to initiate an eminent domain proceeding under Minn. Stat..
Chap. 117 and a public street improvement project under Minn. Stat.
Chap. 429. Neither of those statutes require the City to take any
action on this request.
The City should make its own independent analysis of the requests
to determine if said actions would be in the best interests of the
City of New Hope rather than in the best interests of a private
developer. This is not to say we should completely ignore
interests of private developers within the City, however if these
interests do not also promote the City or public interests, we have
no obligation to act on the request.
Certainly, establi'shing public streets provides us with a
legitimate purpose to implement a condemnation action. Therefore,
if the City determined that such an action is in its best
interests, a condemnation action would be legally possible. If we
decided to implement such an action, I would recommend that we
obtain a formal petition for public improvement from Hoyt
March 29, 1995
Page 2
Development as well as an assessment agreement requiring Hoyt
Development to pay all costs for land acquisition, construction and
legal and engineering fees associated with the condemnation and
resulting public improvement.
If you have any further questions on this matter, please do not
hesitate to contact me.
Very truly yours,
Steven A. Sondrall
slw2
cc: Daniel J. Donahue, City Manager
FIVE 'THOUSAND WINNETKA 2ND ADDITION
o ~o.0_ ...... ~oo
,;I - -
............... , t: ....... i
, ::Iii ............ ~, .-.
OUTLOT A ::~ : ;:~ ....................... __ ., ,._
'E~ ASSOCIATES. INC I,AND SURVEYORS a I,:NCINNF:R~, ·
EDA
~B~~O~ REQUF.~T FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
4-10-95
Kirk McDonald Item No.
By: Management Assistant By: 7
PRESENTATION OF "SHOP NEW HOPE" PROMOTION AND MOTION APPROVING PROGRAM
AND FUNDING (IMPROVEMENT PROJECT NO. 537)
The Steering Committee for the "Shop New Hope" promotion met on April 7th and Key Group, Inc.
presented their proposed program and budget to the Committee. Staff requests to present the program
and budget to the EDA and is requesting a motion to approve the same. The exact budget is not known
at this time, as it will depend on the number of sponsors that can be solicited to support the program,
as well as the number of businesses that will be participating in the program. Staff is recommending
that the program be funded with surplus EDA funds and that a resolution with a specific budget amount
be brought back to the EDA at a later date.
MOTION BY SECOND BY
Review: Administration: Finance:
I RFA-O01 ~
PROPOSAL
FOR
THE CITY OF NEW HOPE
"SHOP NEIGHBORLY
NEW HOPE"
Prepared by:
Key Group Advertising
April, 1995
Situat Analysis
The City of New Hope is a community of£1,853 people and approximately 260
businesses. There are 8,525 households of which 4,900 are single family homes
and 3,625 apartments. The closing of three supermarkets within the last few
years has left New Hope without a supermarket. Other New Hope retailers have
gone out of business or have moved out of the city; and it is anticipated that New
Hope businesses may continue to close their doors or leave the city as competition
gains strength in surrounding communities. City officials would like to develop a
campaign that would encourage the community to support New Hope businesses.
Marketing Objective
To educate New Hope residents of the variety of goods and services available in
New Hope and encourage their support of and loyalty to local businesses.; and to
maintain a stable tax base.
Marketing Strateg?
A five-week campaign themed, "Shop Neighborly New Hope," which will begin to
educate New Hope residents of the variety of goods and services available in New
Hope and encourage support of New Hope businesses, The promotion will kick
off with a tabloid distributed June 7/8 promoting the City's concert series June 14
and culminate with Duk Duk Daze July ~5.
Marketing Plan
Promotion: A kick-offpromotion will be held at City Hall June 14 in
conjunction with the City's summer concert series and the campaign will
culminate with prize drawings during Duk Duk Daze July 15. The kick-off
promotion will feature the popular 50's band, the High Tops, along with
activities such as a classic car show, a helicopter duck drop, high school
bands, airplane banner and food / refreshments.
· Tabloid: A "Shop Neighborly New Hope" four-color tabloid will be produced
and distributed to New Hope residents and surrounding communities
June 8.
· Prize Drawing: Shoppers may register for prizes at participating
merchants from June 15 through July 13.
· Billboards: A billboard campaign, supported by industrial buSinesses
in New Hope, will be used to introduce the theme, "Shop Neighborly New
Hope," to the community.
· Business flyers:
A flyer to New Hope businesses will explain the promotion and request
their support of and participation in the "Shop Neighborly New Hope"
campaign. Businesses will be encouraged to participate by offering
discounts, using promotional materials and inviting registrations for the
prize drawing.
Shopping center owners/managers will be encouraged to participate in the
campaign by contributing dollars to help fund the entire campaign.
There are three categories of participation:
1) All New Hope businesses are included on the Map of the City with a
number call-out. Call-out information includes name of business and
phone number. All businesses receive a "Shop Neighborly New Hope"
window/door decal, registration box and registration slips for the prize
drawing. Cost to participate is $0.
2) In addition to all of the above, a "STAR" New Hope business receives:
a brief description of their business
- their "STAR" Special of the Month
- their business is eligible for gift certificate redemption
- they are entered in the "STAR" New Hope Retailer prize drawing
- their "STAR" Special of the Month is featured in at least one
n~wspaper ad to run in the Star Tribune or Sun Current between
June 15 and July 6
The cost to participate as a "STAR" New Hope business is $25.00.
Marketing Plan (continued)
3) Gold Star Sponsor: Gold Star sponsorships are available at varying
levels. All Gold Star sponsors will receive recognition in the June 8th
tabloid; ROP ads in the Star Tribune/Sun-Post the weeks of June 12, June
19, June 26 and July 4, and in the Duk-Duk Days tabloid published July
13th. Gold star sponsors will also be announced at the Prize drawing
during Duk-Duk Days. Billboard sponsors will also have their name
prominently displayed on the "Shop Neighborly New Hope" billboard the
month of June. Gold Star Sponsorships include:
Developer/Owner Campaign sponsor; $1,500 each
Billboard sponsor: 3 available; $1,500 each
Tabloid center-spread map sponsor: 1 available; $5,000
Helicopter Drop Sponsor: 1 available/tabloid cover; $1,000
High-Tops Sponsor: I available/tabloid cover; $1,000
Classic Car Show Sponsor: I available/tabloid cover; $1,000
Airplane banner- 1 available / tabloid cover: $500
Creative Strate_~_~
Develop a four-color "Shop Neighborly New Hope" logo. Camera-ready
artwork of the logo will be provided to the City of New Hope to be used on any
promotional items at their discretion.
Produce 50,000 four-color "Shop Neighborly New Hope" tabloids which will
be sent to New Hope residents and surrounding communities including:
a map indicating the location of all New Hope businesses
listing of all New Hope businesses & their phone numbers
traffic-generating specials offered by New Hope "STAR"
businesses
a registration form for a prize drawing
promotion of the kick-off event on the cover of the tabloid
over-runs available at City Hall and participating outlets
· Provide 200 "Shop Neighborly New Hope" registration boxes, header cards
and 30,000 entry slips to New Hope businesses for prize drawings.
· Produce "Shop Neighborly New Hope" graphics for billboards and banners.
· Produce "Shop Neighborly New Hope" business flyers explaining the
promotior~ to businesses and shopping center owners/managers and
industry.
Admin~ve Plan
Key Group will:
provide promotional resources for the kick-off event
direct coordination of all promotional details
produce flyers, newspaper ads, billboard graphics, decals, and logo
· write / submit publicity releases
· attend initial planning and Steering Committee meetings and follow-up
meetings after the promotion.
· stay in close communication with all participants of program
The City of New Hope will:
· designate a key contact for decision making during the program
· provide a list of all businesses, their addresses, phone numbers, business
description and special offerings to Key Group
· post flyers to merchants and shopping center owners/managers
· proof tabloid information
The City of New Hope and the Steering Committee will:
· provide coordination of the kick-off event
distribute materials & retrieve entry blanks & materials
· conduct phone follow-ups both during and after the promotion
Estimate
(April 7, t.oo~5)
City of New Hope
"Shop Neighborly New Hope" 4 Week c~rnpaign
Kick-Off Event $2,50o.oo
Logo $88o.
Design, layout, production, illustrated or computer generated
Tabloid $45, 3o0.o0
"Shop Neighborly New Hope"
Concept, design, layout, production, map iI[ustration, film, distribution
and printing - 4 color, 50,00o, 2t"xt t"
Billboards $5,
3 billboards located in the New Hope community, 4 weeks
Ads $8,7o0.0o
Concept, layout and production
8 6o cohlmn inch ads ~otaI - 4 in the Sun & ,1 in the Star
~ t/2 page ad in the Duk Duk Daze tabloid
Flyers $340.00
Concept, layout, production and printing (2 versions)
Ballot Boxes $3,8 ~ 5.00
2o0 boxes with header cards printed t color with 30, ooo entry slips
Decals $t, 50o.0o
5oo 2 sided, 4 color, 5"~c5"
Prizes $2,650.0o
Gift certificates, star retailer prizes
Production of custom gift certificates
Account Management $7, oo0.00
Client meetings, campaign co~cept, supervision of implementatio~ of prograph,
follow-up and research, March - July,
Subtotal $48,385.00
Additional Spo.nsorship ($5,000.00)
Additional Funding: 3 billboard sponsorships at $t,50o each ($4,50o.oo)
70 retail participation at $25 each ($t, 750.00)
3 developer participation at $t,500 each ($4, 5oo.oo)
Total $32,635.00