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062695 EDA Official File Copy CITY OF NEW HOPE EDA AGENDA EDA Regular Meeting #10 June 26, 1995 Agenda #11 President Edward J. Erickson Commissioner W. Peter Enck Commissioner Pat La Vine Norby Commissioner Gerald Otten Commissioner Terri Wehling 1. Call to Order 2. Roll Call 3. Approval of Minutes of June 12, 1995 4. Discussion Regarding Letter of Intent Submitted by EVEANN Limited Partnership for Champion Auto Store on City-owned Parcel at 42nd and Nevada Avenues (Improvement Project No. 523) 5. Discussion Regarding Purchase Agreement Submitted by Gill Brothers Funeral Chapels, Inc. for City-owned Parcel at 42nd and Nevada Avenues (Improvement Project No. 523) 6. Resolution Approving Plans and Specifications for Landscaping at 7901/7909 51st Avenue North (Improvement Project No. 505) 7. Resolution Approving Change Order for Construction Contract for 7901/7909 51st Avenue North (Improvement Project No. 505) 8. Resolution Calling for a Closed Meeting of the New Hope Economic Development Authority Authorized by Minn. Stat. §471.705 to Discuss Litigation/Settlement Strategy on 5500 Boone Avenue Condemnation 9. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes June 12, 1995 Meeting #9 CALL TO ORDER President Erickson called the meeting of the Economic Development Authority to order at 7:51 p.m. ROLL CALL Present: Erickson, Enck, Otten, Norby, Wehling Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald APPROVE MINUTES Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to approve the EDA minutes of May 22, 1995. All present voted in favor. Motion carried. IMP. PROJECT 541 President Erickson introduced for discussion Item 4, Motion Authorizing Item 4 Staff to Proceed to Negotiate with Owners to Purchase Properties at 7621 Bass Lake Road and 5559 Sumter Avenue for Bass Lake Road Extension Housing Redevelopment Project (Improvement Project No. 541). Mr. Donahue, City Manager, stated the purchase prices will be determined by the appraised property value and through negotiation with the property owner. The negotiated price will be a separate matter for each property. He reiterated that the project for this area in no way forces residents to move from their homes. The EDA will only purchase homes from "willing" sellers and as they become available. He pointed out that the project is in response to property owners' requests for assistance. The Bass Lake Road extension is too narrow for adequate access by emergency vehicles. In the project's interim, some of the homes may be rented out by the City and some may be demolished. He emphasized that no decisions have been made in regard to the type of future housing development. MOTION Motion was made by Commissioner Enck, seconded by Commissioner Item 4 Wehling, authorizing staff to negotiate with owners to purchase properties at 7621 Bass Lake Road and 5559 Sumter Avenue. All present voted in favor. Motion carried. IMP. PROJECT 541 President Erickson introduced for discussion Item 5, Motion Authorizing Item 5 Staff to Obtain Appraisals on Two Additional Properties (7609 Bass Lake Road and 5520 Sumter Avenue North) for Bass Lake Road Extension Housing Redevelopment Project (Improvement Project No. 541). Subsequent to the May 8th Council Meeting, two additional property owners notified city staff of their interest in a voluntary sale. MOTION Motion was made by Commissioner Enck, seconded by Commissioner Item 5 Norby, authorizing staff to obtain appraisals on two additional properties (7609 Bass Lake Road and 5520 Sumter Avenue North) for Bass Lake Road Extension Housing Redevelopment Project. All present voted in favor. Motion carried. New Hope EDA June 12, 1995 Page 1 BUSINESS RETENTION President Erickson introduced for discussion Item 6, Motion Approving PROGRAM Participation in Phase II of the Community Partners Business Retention Item 6 Program. For the past 1-1/2 years, New Hope has participated with the cities of Brooklyn Park, Brooklyn Center, and Blaine in the Community Partners Business Retention Program sponsored by the North Metro Mayors Association. The first phase of the program surveyed all industrial/commercial/retail businesses in the City regarding their needs and expectations. At the last Commission meeting, a motion was passed to transition the Community Partners Program into the Phase II stage. This six month phase will begin July 1st and will involve prioritizing recommendations, developing specific action plans, and maintenance/updating of the data base. The cost for the City to participate is $4,230.00 and is included in the 1995 EDA Budget. Commissioner Wehling inquired whether the "Shop New Hope" promotion resulted from Phase I. Mr. Donahue indicated the Community Partners Business Retention Program heightened the EDA's awareness that there is a business/retail concern. The "Shop New Hope" campaign was a marketing idea to bring retail businesses together. MOTION Motion by Commissioner Otten, seconded by Commissioner Wehling, Item 6 approving participation in Phase II of the Community Partners Business Retention Program. All present voted in favor. Motion carried. MARKET STUDY President Erickson introduced for discussion Item 7, Consideration of Item 7 Market Study Proposal by Northwest Associated Consultants, Inc. for $9,500. Mr. Donahue stated this would be the type of study to be undertaken if the EDA wishes to be pro-active in marketing the entire Winnetka Shopping Center property. He stated the City could pursue this independently or in conjunction with the property owner. The study would provide direction to the EDA on how it should proceed in attracting viable businesses to this site. The EDA expressed concern regarding the cost and the responsibility of the shopping center owners. The City Manager was directed to approach the property owner to share the cost. The EDA discussed the grocery store space recently vacated by Super Valu. Mr. Sondrall pointed out that Super Valu has a lease with the center for the next ten years. He suggested contacting the property owner to discuss the lease provisions and determine whether it would be beneficial to pursue a the market study. Commissioner Enck commented that Super Valu is fulfilling its contractual obligations by paying the lease, and the City has no right to interfere with the lease. He expressed support if Super Valu and the property owner wish to find a better use for the property, but he does not feel City funds should be expended to subsidize a project that should be done by a property owner. Commissioner Wehling asserted that vacant space reflects poorly on New Hope EDA June 12, 1995 Page 2 viability of the business community. She pointed out that the study could research reasons why the grocery store did not succeed, and the study shOald focus on th~ actual design of the center including visibility, attractiveness, accessibility, etc. She emphasized the need to encourage the owner to participate in sharing the cost of the study. Commissioner Otten remarked that cities must maintain a cooperative effort with businesses and take an active part. The EDA directed staff to seek a 50/50 cost sharing arrangement with the owner of the Winnetka Shopping Center for the market study. OTHER BUSINESS Mr. Donahue requested the addition of Item 8 to approve payment for light EDA Item 8 pole banners. He stated the payment of $14,697 is for 29 sets of banners for light poles including hardware of two brackets per pole for 28 poles. Her noted one extra set of banners was provided. MOTION Motion was made by Commissioner Wehling, seconded by Commissioner Otten, authorizing payment of $14,697 to Northcott Banners for "Neighborly New Hope" light pole banners. All present voted in favor. Motion carried. ADJOURNMENT Motion was made by Commissioner Wehling, seconded by Commissioner Otten, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:19 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA June 12, 1995 Page 3 · ~ EDA REQUF.~T FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA 6-26-95 Kirk McDonald (~) Item No. By: Management Assistant By:~/ 4 DISCUSSION REGARDING LETTER OF/INTENT SUBMITTED BY EVEANN LIMITED PARTNERSHIP FOR CHAMPION AUTO STORE ON CITY-OWNED PARCEL AT 42ND & NEVADA AVENUES (IMPROVEMENT PROJECT NO. 523) The Ackerberg Group has submitted the attached "Letter of Intent" to purchase the City-owned property at 42nd and Nevada Avenues for use as a Champion Auto Store, with an additional 6,000 square feet of retail space. The terms are a total of $200,000 to be paid as follows: $10,000 to be paid at closing and $190,000 to be financed by the seller at a rate of 10% over a 10-year period. Conditions include, but are not limited to: vacation of the existing utility easement in the center of the property to be moved to the west property line; buyers to grant driveway access to Rockford Road; Environmental Phase I and II at sellers expense; all wells abandon at sellers expense; and site plan approval. The property is zoned B-4, Community Business District, and an auto-related facility would require a conditional use permit. Staff has indicated to Ackerberg Group that the EDA previously rejected an offer on the property from a similar auto-oriented use (Minne Mufflers, Inc.) in September, 1994. The City executed an agreement with Thorpe Bros./Ackerberg Group in June of 1994, to market the property on behalf of the City with an 8 % commission upon the sale of the property. Staff requests that the EDA give staff an indication as to whether the EDA wants to pursue this offer or not. A site plan showing how the property would be utilized is also enclosed. MOTION BY SECOND BY Review: Administration: Finance: RFA-O01 ~  3100 West Lake Street1 Suite 100 ~ Minneapolis, MN 55416-4510 Tel 612.824,2100 Fax 612,924.6499 THE ACK[RBESG GROUP New America Network June 19, 1995 Mr. Kirk McDonald City of New Hope 4401 Xylon Ave. No. New Hope, MN 55428-4898 Dear Kirk: ' Please find enclosed the "Letter of Intent" to purchase the property owned by the City of New Hope for use as a Champion Auto Store, with an additional 6,000 square feet of retail space. Champion Auto Store does not want to spend a lot of time on this site in the New Hope area&~EDA is opposed to this type of use. Please schedule this for the EDA to review at their regular meeting. Sincerely, Senior Real Estate Consultant (612)924-6432 Enclosure RTP: slc Your Par(ne~ in Real Esta[e Services Worldwide .,TI, IN-- ! 4-95 WED 0~: 1 '? ;::ir,1 DON-EARL HOLDINGS, LLC 9:~ Jefferson Hishway Maple Grove, MN 55360 612-391-?S26 May4,1995 The Ackerberg Group 1~.2 We~t Lal~e St SuJ~ #3O0 Minneapolis, Minnesota 58408 Letter of Intent · Re: ?300 42nd Ave North Buyer: EVEANN Limited Partnership Purchase Price: $200,000 Terms: Total of $200,000.00 to be paid as follows: Earnest money of $10,000.00 to be deposited into an interest bearing account payable to seller or sellers agent, to be applied in full at time of dosing. One hundred ninety thousand dollars ($190,000.00) to be financed by miler at a rate of 10% fully amortized,.prindpal and interest, for a period of 120 months with the first payment due 30 days after dosing. Buyers may, at their option, prepay with no penalty. Closing: Following completion of contingencies and due diligence. Initial dosing date of August 1, 1995 targeted. Cio,sing date subject to change. Conditions to closing: Review and acceptance by buyer oh 1. This letter of intent is valid for 30 days from above date. 2. Sul-eey 3. Title review 4. Existing utility easement is to be vacated and moved to the west property line at the sellers expense. 5. Buyers Will be granted driveway access to Rockford road. 6. Environmental Phase I and il at sellers expense. (seller warrants that the property is free from hazardous substances) 7. Ail wells c~ the property will be properly abandon at sellers expense. 8. Zoning: City permits, Site Plan & Use Approval granted to buyer for intended use. 9. Purchase Agreement: A formal definitive purchase agreement to be drafted by buyer, at buyers' expense, by Seigel, Brill, Greupner & Duff'y, P.A. The offer as proposed and agreed to in this Letter of Intent is subject to the definitions, terms, and provisions of the formal purchase agreement. EVEANN Limited partnership is a Minnesota Limited Pafmerskip whose general partner is Don-Earl Holdings, LLC, a Minnesota Limited Liability Company whose principals are Gary' Bebeau and Dene Billbe. They are also the owners oi Champion Auto Stores, Inc. Reply to: Dene Billbe or Gary Bebeau EVEAlqlq Limited Partnership 93.53 Sefferson Highway Maple Grove, MI~ 55369 612-391-7494 Sincerely, EVEAlqN Limited partnership By: Don-Earl Holdings, LLC General Partner Dene E. Billbe Co-Chief Manager Accepted by: Date. City of New Hope "" f--:l-l"r-r-~7~:,?'i"f- f'i' i ] J / // I I I I I I I,I II '" ' (n_ Lq-- - - ' ..q 4..Lt ' [!:=:--L.~-.CL_J,_-' .,., NEVADA AVE. N. '"'~ ' 'I! CHAMPION ' ' -'~' ]~lllllll]il Il I t,_..m STORES CITY CENTER ADDITION NSOj,2:~5?'E A' ~r'l'c"' r'"" ,'., Ir-S,-,,, ,,c. N,, .:,: ,--: AVENUE N. ..~, -- ::585.00 S8°J~:5'5'7'W .... 0 - - zOO00- - CH.=103.04 ,..., ._.~':-J AGE 8~ UTILITY EA ~EMENT ~. \ ' '~' -, .~,~,. / ' ~ ~11 "'::' ' /:~ '" ,', 0 ..... o I' "" TM ~' ? ~ -- 8~ UTI ITY IrASEMI ''' J ! · 0 ' __ -- -- Z - I --96~5 C'$ - ~OL~ 4~ND AVENUE 103.78 S88"$7'IG'W ,, L=253.1P_ R:57G~.GO A:P_°31'O0'- , 1§8.L:'4 ~ $88~51~14.'E ~ Ncrlh line o! HCSAI-I ~lo. ~, PIol ,58 ..-"/ " ;~,~t' ~J~ h~' ~d~',r-~'rI-J · , ~ ............. ' ..... [ CO. "':" ''~ r, ---I 60 ,,r ;.2__' 2'_ _. -; .-, b] O: ,., ' , "~ C": I'~, -- ,- ~r , (,~ ,>_' .. ',.!  I EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA 6-26-95 Kirk McDonald f,') Item No. By: Management Assistant By:pt/ 5 DISCUSSION REGARDING PURCHASE AGREEMENT SUBMITTED BY GILL BROTHERS FUNERAL CHAPELS, INC. FOR CITY-OWNED PARCEL AT 42ND AND NEVADA AVENUES (IMPROVEMENT PROJECT NO. 523) Gill Brothers Funeral Chapels, Inc. has submitted the attached proposal/purchase agreement to purchase the City-owned property at 42nd and Nevada Avenues. Gill Brothers is proposing construction of an approximately 6,500 square foot (main floor) funeral home, which would be a two-story colonial style building. The building would incorporate a drop-off canopy and a circular drive and the site would contain extensive landscaping. Gill Brothers Funeral Chapel is a family-owned business that is in the 106th year of operation. Staff met with Gill Brothers representatives this past week and they will be present at the EDA meeting to make a presentation and answer questions. The terms of the purchase agreement are a total of $21)0,000 for the property, with a condition that consideration be given to the City assisting the project with a low interest loan. A $1,000 deposit has been made with the City. The property is zoned B4, Community Business District, and a mortuary/funeral home is a permitted use. The City executed an agreement with Thorpe Bros./Ackerberg Group in June of 1994, to market the property on behalf of the City with an 8 % commission upon the sale of the property. Staff requests that the EDA give staff an indication as to whether the EDA wants to pursue this offer or not. A site plan showing how the property would be utilized is also enclosed. MOTION BY SECOND BY .... , ' r- [j U Review: Administration: Finance: RFA-O01 ~ FUNERAL CHAPELS, INC. June 21, 1995 Mr. Kirk McDonald c/o The City of New Hope 4401Xylon Avenue North New Hope, Minnesota 55428 PROPOSAL For THE CITY OF NEW HOPE New Hope, Minnesota Gill Brothers Funeral Chapels, Inc., would like to purchase vacant property from the City of New Hope. The property is located at the Northwest corner of Rockford Road and Nevada Avenue North, New Hope. On the proposed site, Gill Brothers Funeral Chapels is planning construction of an approximately 6,500 square foot (main floor) funeral home. The planned funeral home is a two story colonial style building. The potential building would incorporate a drop-off canopy and a circular drive. The proposed property would be beautifully landscaped and would have more than adequate parking with handicap parking as well as accessibility. We have surveyed the local governments and have found them to be very receptive to having Gill Brothers Funeral Chapels serve their communities. Crystal, Golden Valley and Plymouth presently do not have a mortuary to serve them. New Hope has a small chain owned mortuary. All the clergy we have interviewed are very anxious to have us serve their churches. They prefer a mortuary of long standing service in this area that they can depend on, not one that is doing to move or sell out to a national chain. We at Gill Brothers Funeral~Chapels, a f~mily owned business, in our 106th year of serving Minneapolis and suburbs, would be honored and grateful to the City of New Hope to help us with the purchase of the proper~y so we can continue to service the Twin Cities. With tax increment financing and redevelopment, funding this project will be a success. Respectfully submitted, GILL,-~ROTHERS FUNERAL C~APELS, INC. Daniel J. McGraw President EXECUTIVE OFFICE SOUTHWEST CHAPEL BLOOMINGTON · RICHFIELD CHAPEL 5801 LYNDALE AVENUE SOUTH, MINNEAPOLIS, MN 55419 9947 LYNDALE AVENUE SOUTH, MINNEAPOLIS, MN 55420 (612) 861 · 6088 (612) 888 ° 7771 09:41 MILLER CONST ~ CITY OF NEW HOPE N0.749 grANDARD FORM COMlV RClAL PUR E AGRE' ~./'~v~-~i~.__t~. Sencr is now the fm owner of ~ ~' ~ ~ in the County ~_ SCare of ~~, ~mo~y ~ ~ ~~ ~y d~b~ on ~bit 'A" a~ h~o ~d ~ p~ h~f ~ ~e ~m~ ~ ~ ~ Y~ ~ No); ~ NOW, ~0~, ~ ~~a of ~ mu~ ~~ ~d ~&fio~ ~, ~e~ do~ ($I0.~) ~ o~ g~ ~ ~le ~d~, ~ ~u~ ~d ~2..P~~ ~ ~ PA~. Buy~ ~ ~ ~y ~s ~omt offS.. fca~mg m~: ~fion of Clo~g, ~ ~ d~. c. ~e b~ of ~~g ~ fo~s: Buyer ~ ~ ~ ~ b~t ~o~'~ ~ a ~mmi~t for su~ f~n~t ~ ~nsumma~ ~d ~g. In ~ ~t Bu~ ~ot ~re a ~m~t for fn~ng wi~ ~ a~ of a~ of ~ ~~t ~d ~ te ev~t Buy~ MILLER CONST ~ CITY OF NEW HOPE ddive~ to $ctl~ on or before said dat~ wriue~ not~ o~ i~ ~ ~ ~ ~ ~t mney ~d her~n s~ ~ m~nd~ ~o Buy~, 3, ~A~:OF ~S~G. ~e ~ of clo~ng ~ b~ ~ ~r ~ (~ B~y~'s op~) ~~W~~~ ,~ ~~~~or~a~for~ . ~r~ ~ ~ su~ o~ d~m~ ~f~ ~ at ~ph 8 h~r. ~e ~of · e ~ ~d adju~ by ~ ~ of ~ ~ of Close, l~ s~ be ~ to ~ b~me ~ ~ ~ ~ ~~b~ for ~ ~ ~~ on or ~ ~e c. ~ ~ ~ ~v~ by ~ au~ ~ 8~ s~l be ~~.~ ~ ~qu~ r~ ~ ~ ~~ ~y ~ ~ mBuy~ M~ ~~ M~ude pm~ ~~ ~ ~ptci~, ~ ~d f~ jud~~ ~d B~y~ s~l be ~ow~ ~ ~ ~ ~ ~pt of ~ ~ct of 22~ or ~gt~t~ pro~ ab~ for ~~ ~ ~e m~ of~y ~~ ~, ~ ~y obj~oas ~ m ~dc, the 8dl~ ~ be ~w~ ~e h~ ~ (120) ~ys from ~ of ~d obj~o~ to m~ tach ~ m~le. P~ ~on of ~e, ~e ~~ h~e~ ~t~ ~h~ ~ ~s~n~,. but : -z, C,~b:~,2 r,'~ILLER CONST ~ CITY OF NEW HOPE N0.749 D04 upon correc6ou o~ ti~ and within ten (10) days after wrluen notice of correction to ]3uycr, the pa.,iiea shall perform this A~eement accosting to its terms. If title is not co~ within said one hunted twenty (120) days, then this Agn:cmc~ shall be mill and vokl at thtyer's option. If Buyes' elects to cancel this A~l~)m~t as set ~ he~e~, ~e~ both tml/es shall execute a CanceJlation Al~'eement and neither shall t~ Uable to thc other for damages bet'e.,under and earnest money paid hereunder ~nount of the purchase price in lieu of an abstract of title or regi~ property, abm'act if thc property is subj~ to a master abstrac~ or if no abstract of title is in S~II~r'~ possession or control. If Buygr is to rece~v~ such policy (i) ~ title e×s~,~ion l~od sh2II ¢o~lmc~c~ tlpoll Buy~'~ receipt of a CUlTCn~ ~ ~m~t and (2) SeUgr shall pay for the co~ off issuing the ~itie commitment and B~yer ~ I~Y the owner's ~tle L, muance premium, b, Cu~ent tease~, lease l~m..nnties and rent for listin8 ~mes of all tenants, occupancy c. Coplcs of all se.*vice and other contracts and written sumnm~es of ~ny agrcemertts of n~y kind ~ natm'e af:fect~g the ~, includ~n§ but not lhu~ to, management, rubbish removal and service contracts, if any. d. Coph~s of all notes, mortgages, ~m.,-ity a~reeme, nts, assignments of rent~ crt other agxcements or documents relag~ to fmanoiag maugn affect~g ~e Pm~ and which will continue to ~tect the ~ after ClosLM. .. e. An inventory ('Inventory') of all equ[pmertt, machlne~, suppli~, and persm~al Clos~n§. 8. F.BI~'$ICAB..I~~TIQN.. Seller sh~ll provide Btrycr acce~ to the Property at rc~o~=ble times Ruing regular btZ$/kil~S hour~ for the ptupose of conducg/lg ht,~ctions the. rcof ~c,~ud~g mecha~rtic~I, structural, eZecttical and other physical inspectfons. ., 7. PERSQNAL I'lt0_FER _'~'. This sale includ~ nil ~'rdr. n bulbs, phmL% sluub-~ and trees, ~11 storm sash., stonn doox~, deta~M vestibules, ~eens, awnings, window si-males, blinds, CtUrU~ rods, l~hting ~ and bulbs, plumbing fixtures, hot water ~ a.,id hcat~ plant, water ~oftener and liquid gas b,_.nk and controls (if the ~pcrty of Selter), televtskm antenna, ap.d central air condiUo~ cquipmcut, if any, used and loca~ on the Pmpert~ but c~cluding ~ty such items own~ by any tenant of the ~. S. x)oc~r~ TO s.~_ma'L~n O~ DAT. E OF CLO~. Subj~t to complete and timely pm'forman~ by Buyer of its obligations he~n, Se. llef ~ de~ver to Buyer on the date of Closing the following documents: a. Original conveyattcL~ itlstrumcnts conternplat~! at paragraph 3 hereof, duly executed Nd acknowtcdsed by Seller. 06/23×95 09:43 MILLER CONST ~ CITY OF NEW HOPE N0.749 ~05 ' b. Affida~t, in t.h~ customax7 fom~, reht/ve to judg~, f~ ~y d~m~ ~ ~o~ ~y d~. S. ~ ~~Y ~~ ~ ~ ~d I~ ~~. he. undo. ~eE~ ~ p~y for ~y ~ ~ ~ ~e ~:~ 0f w~ ~d ~ now ~d ~ of ~e ~ ~ ~ng ~ foH~: t~s of A~ ~s) or by S~ ~ ~o~g. ~mb~ ~pt ~ ~y ~~ A~d~, c. ~a~ ~ p~son ~u~g ~ A~~t on b~f ~ S~ ~ ~H au~od~ ~ b~d ~ S~ ~ ~ A~~t. ~~ m r~ ~y toxic sub~, h~ous ~4 or contaminant within the mea~ag of any fegeral or state su~ law, onvimnmental law, ~ o~ order. Additionally, Selle~ ~t$, to the best of Seller's lmowled~c, that it bas not used the Property in oom~eaon with the generation, disposal, storage, treatment or transportation of such substances. 10. CASU_iLTY LO,SS. The risk of loss from fire or other c~saatty slmil remain on Seller tmtil Ctosing. If prior to ClosiaS, any impt, ovem~ts on the Property are substantially da~ by fire or other casualty, Seller shall notify Buyer ia writiag of the ~ wi~_hfo five (~ business days of ib oocurrenee ~*ld ~ shall within tert (10) days of the ltoti~ have ~tio~ of proceed~g with the ~los~g ~ re~vi~ the insunnm ~ l~y~l~ ~r tho (or an assignment thereof if ere same are not received by Ctoai~) ot caneetti~ ~ Pm'cimse Agr~m~rtt ar~ receiving back the earnest money deposited, all subject to the terms of any lease of ~c Propex~. i.!. ~EM:rqATfON. The risk of Ices from condmrmation ce threat thereof shall ~a $¢i1~r xmtil Closin$. If prior to Closinl~ any of th, Property is condemned under the power of eminent domain, is the subject Of a threatened condemnation, or is conv~y~d to a coring authority in lieu of condemnation, Seller shall nofff7 the ltuyer in wriliag of tim co~tion or conveyanc~ within five ($) bt~ines$ days of its ~ Buyer shall within tra (lO) days of ~ uoti~ have the option of proceeding with tt~ Closi~, and receiving the award of condemnalion l~tyment (or an assignment thereof if th~ same is not received by Closing), or can~ lilis Pzuchase Asreement raceiv~g back thc earners money deposited, all subject to the terms of the any lease of the Property. .. 12. ~F..~,ll~. If title is marketable or is corrected within the time presctib~ at ~h $ hexeof, and Buyer defaults in any of the asrccments here~, Sellcr reaI tenuina~ this Agreement, and on such m'mi~ation all payments nutde hereunder shall be retained by ,~ller and The Ackcrberg Oroup, as thelr'r~ve interest may appear, as liquldatcd damatp~, time being of the essence ttereof. This provision shall Lot deprive either pm7 of the sight Of eaforcing the speciic pedorman~ of this Agzeement, provided this Aareement is not ~ and action to caforce ~pecific pe~ansace is commenced within e~x mo~ths aft~ such right of action .. m-i$cs. In thc event Buyer dcfault~ in his pexfo~ of the terms of the Agreemeat, and Notice of Cancellation is serzed uix~n the Buyer pursuant to MSA $~9.21, the termination perio~l ~ be thh'ty (30) days as permitted by Subdivision 4 of ]~SA 13. A~GENC_Y._DISCLOSOR~ ~'~,~ (Selling stipulates he/she is representin$ the"'__.~c~._._. The Lisl~ Agent represents that it is ~-epresent~ the 14. ACCEPTAlqCE.. Buyer understands and a4Feea that this sate is subject to acceptan~ by Seller ia w~itin$. The Aclmb~a Group is not liable or reapons~le on accotmt of this A~zee. ment eoa:ept to re. turn or account for the earnest money. a. Seller and Buyer do hereby acknowledge that time is of the csse~ of this Agre,¢mcnt. E~6., 23/95 09: 45 M I LLER CONST ~ C I TY OF NEW WiPE NO. 749 [~07 · hours for ~r tnspeciion$ as may be reasonable, includi~ Seller's books aad All. frostick, d~mand~ and ~xl.uest~ which may be ~ivea or served or which required to b~ given or sereed by either par~ io the oter $~1] be in writin~ and prepaid, addmmsed as follows: Notices, demands and requests by ~e Seller or Buyer in ~ manner aforesaid ~ be d~emed sufficiently s~-ved or llivea for all purlx,ses hereund~ at the time of such no~ice, d~ma~d or request shall be mailed. F~er 'Irony may chaage h~e place' to which no~ice ii U~ be seat by sere/rig a wfi~en nolice thereof upon the other h~ ack,dance with the terms het'eof, d. This Agreement sha~ inur= ~o th~ be. ne. fit of, and shall b~ binding upon, the heir, admini~.!._~r~, s~,~ssors and assitn$ of ~h~ partie~ hereto. ~. Buyer shall not assign its rights i~ thi~ Purdmo ~t prior to Qodng without the prior writt~ conm~t of Seller, f. Th~ ~ra$ and conditions of this ~m~t, to~cth~r wi~ any appacablc ~ and r~rc~culations contained h~gn (each of such w'arran~s and rcpresm~om to be teemed reh~ ~o ~d ~o be w.~ ~d corfeci on the daIe of Closing) and shall survive the Closin8 and not bc mer~cd by Buyer's execution or aco~ta~c~ of ~ Deed, or oh~r doc~meat used in conn~ton with the Closing. g. This Agreement ~,11 be ooz~st~ed in aOoo~ce wiih th~ laws of ihe state i~ which the propm~ is local. h. This offer shall expire at 12:00 noon on ~, I9 ~,"unle~ prior thereto it is acc.~t~i by $cller. Pag~ 6 - '~- ~_-":'.-_,'= ~;'~ILLER,, CONST -* CITY OF NEI,d HE~PE NO. 749 D08 ~6,'23,,"95 09:45 MILLER CONST ~ CITY OF NEW HOPE N0.749 ~0~ ~ FROM ; ACCEPI'A.NCE OF ~ MONEY BY LlSllNG BROKER , ~" '~ ,_~'~_,. ..... ~c~ ?IlLLER CONST ~ CITY OF NEW HOPE N0.749 Q10 ~. ~ ~ ', TO : l~l~l~Sl~ ~.99S,0~-~ ~)8: 24, #~8 I=. F_~rr "A,,, LEGAL DF.~~ON :.'f, J~;J~, i'IlLLER CONST * CITY OF NELl HOPE N0.749 [~11 ' Addeadvm to g~e Purchase A~,reemeat d~! -- by and between ~m Buyer. GILL BROTII[ GILL BROTHERS EUHERAL HO/~E 02/03 CORRX¢~ & SO~DRAL[.,, Suite ~203 Brnokly~ P~k, Minneso~ 55448 ~LE~HONS (Si2) 4~-5e71 FAX (~T2) a~ Juna 22, 1995 8~ty of New Hope 4401Xy-ion Avenue North New Hope, MN 5642~ RE: Thorpe Bros. Commercial - industrial Exclusive Listing Agreement dated June 27, 1994 Our File No: 99.10000 Dear Kirk: This letter is In response to our .telephone conversation of June 21, 1995 regarding the Thorpe Bros. Listing Agreement for sale of the property at the northwest corner of 42nd Avenue and Nevada Avenue North. Apparently~ a real estate ?irm called the Ackerberg Group purchased the assets of Thorp Bros., Inc., the origlnal broker to the listing agreement. Also~ a funeral home is now interested in buying the properly and its interest may not have been developed by the Ackerberg Group. YOU asked me the following q~estic>n~: l, Does the City continue to have a legal obligation to the Ackerberg Group under the Thorp Bros. Listen9 Agreement? Would The City be required tO pay the AcKe~berg Group a commission on the funeral home offer to buy the subject property? The answer to both of these questions is yes, Please refer to the miscellaneous seution of the listing agreement on page 3, Paragraph 10 makes this agreement binding on the heirs, successors and &ss~gns of the parties. The paragraph seems to ~mply that the interest of Thorp Bros. under the listing ~greement can be assigned to the AcKerberg Group, j~jN-22-95 THU 12:12 v, u~/u~ Mr, Kirk McDonald dune 22, 199~ Paps 2 R~Ar-~nQ question 2, please refer to the Commission section on page 2. ParagrAph 9 indic&res the City will pay the listing agent a commission if the property is sold to anyone who has made an affirmative showing of interest in the property within 90 days of the expiration of tbs listing agreement date if the listin9 agent has given the City a written list of prospective buyers within 72 hours after the expiration of this agreement. In other words, when the agreement expires on JUne 30, 1995, the Ackerberg Group has 72 hours tO provide the City with a list of individuals who have showed an interest in the property. Any sale within 90 days after the expiration date to any indtvidua~ on the list will expose the City [o liability for a commission on the sale of the property. If the funeral home is on the 3ist we may be required to pay a commission. Please contact me if you h~ve &ny further questions. Very truly yours, s~t2 COMMERCIAL-INDUSTRIAL EXCLUSIVE LISTING AGREEMENT SALE This form approved by the Minneapolis Area Association of REALTORS®. Minneapolis Area Association of REALTORS® disclaims any liability arising out of use or misuse of this form. Date: June 27, 1994 IN CONSIDERATION OF the Agreement of Thorpe Bros.. Inc. (hereinafter referred to as "BROKER") to undertake to sell the premises hereinafter desctibed, ~The City of New Hope (hereinafter referred to as "SELLER") grants to BROKER the exclusive tight to sell or contract to sell'the property known as the northwest corner of Rockford Road and Nevada Avenue and legally described as (exact lc§al will be furnished by the Seller. based on a certified survey./ (hereinafter referred to as the "Property") for the period from the date hereof through and including June 30, 1995, for the sum of Two Hundred Fifty Four Thousand. Eight Hundred Twenty-Six and no/00 Dollars ($ $254,826.00 / upon the following terms Cash or at any other price, terms or exchange to which SELLER may consent. NOTICE: THE COMMISSION RATE FOR THE SALE, LEASE, RENTAL OR MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL BROKER AND ITS CLIENT. SELLER'S OBLIGATIONS It is agreed that SELLER shall promptly furnish BROKE~vith c~tnplete information concerning any person who during the period of this ~f~re~e~[flnake~inquiry t ~0~E~ regarding the sal~x~ange or lease of the Property. City Manager~z~ ~/~~ May(~brpe v~4r]~:J- . ~-- ~- ./ L'~-~-/if currently, ~n geller's possession SELLER hereby agrees to furnish to Buyer an AbStract ot'-t'itle,/or a Registerea Property Abstract, certified to date, to include proper searches coveting bankruptcies and state and federal judgments and liens, and to execute or :ause to be executed a deed of general warranty conveying a marketable title to the Property to the Buyer and any further documents as may be required to consummate the sale to Buyer in accordance with the terms above designated or with the terms to which SELLER may hereafter consent. SELLER hereby agrees to furnish to any Buyer, before signing an agreement to sell, a written disclosure of all known wells on the Property and further to provide Buyer at closing with a Well Disclosure Certificate or certification of no known wells. SELLER further agrees to promptly notify BROKER of any notices pertaining to the Property which are hereafter received during the term of this Agreement. It is further agreed that SELLER shall permit BROKER to erect a "For Sale" sign on the Property and to remove all other "For Sale" signs from the Property during the period of this Agreement. It is further agreed that SELLER shall permit BROKER to erect a "Sold" sign on the Property for a period of 30 days following the sale or exchange of the Property by BROKER. Page 1 r COMMISSION It is further agreed that SELLER shall pay BROKER a brokerage fee of ( 8 %) percent of the price for which .the Property is sold or exchanged, upon occurrence of any of the following conditions: 1. The sale, contract for sale, exchange, or conveyance of the Property during the period of this Agreement by BROKER or any other person, including but not limited to SELLER, or any other agent or broker not a party to this Agreement, in accordance with the price, terms or exchange as set forth herein or as otherwise consented to by SELLER. 2. If a Buyer is procured, whether by BROKER, SELLER or anyone else, who is ready, willing, and able to purchase the Property at the price and terms set forth above and SELLER refuses to sell. 3. If SELLER agrees to sell the Property before this contract expires, and SELLER refuses to close the sale. 4. SELLER removes Property from the market before expiration of this Listing Agreement. 5. If SELLER grants an option to purchase the Property, SELLER shall pay BROKER a sales commission in the percentage provided herein based on the price paid for the option and for any extensions thereof. This commission shall be paid upon receipt by SELLER of any such payments. In the event such option is exercised, whether during the term of this Agreement, or within 90 days thereafter, SELLER shall also l pay BROKER a sales commission on the gross sales price of the Property in accordance with the provisions herein. Notwithstanding the foregoing, to the extent that all or part of the price paid for the option or any extension thereof is applied to the sales price of the Property, then any commission previously paid by owner to BROKER on account of such option payments shall be credited against the commission payable to BROKER on account of the exercise of the option. 6. During the term of this Listing Agreement or within 30 days after the expiration of this Listing Agreement: (i) the Property is acquired by a public authority; (ii) an agreement to acquire the Property isi reached with a public authority; or (iii)a public authority institutes eminent domain/condemnation proceedings to acquire the Property. 7. SELLER contributes or conveys the Property or any interest therein to a partnership, joint venture or Other business entity during the term of this Agreement in lieu of a sale of the Property during the term of this Agreement. 8. SELLER is a partnership or other business entity and an interest in the partnership or other business entity is transferred, whether by merger, outright purchase or otherwise in lieu of sale of the Property during the term of this Agreement. 9. If within 9Q days after the end of this Agreement~ SELLER sells or agrees to sell the Property to anyone who has made an affirmative showing of interest in the Property by responding to an advertisement or by contacting the BROKER or salesperson involved or has been physically shown the Property by the BROKER or salesperson. It is understood that BROKER shall not seek to enforce collection of a commission under this Paragraph 9 unless the name of the prospect is on a written list given to SELLER within 72 hours after expiration of this Listing Agreement. SELLER further agrees that in the event a lease of the Property is entered into (a) during the term of this Listing Agreement, or (b) Outing the period set forth in Paragraph 9 above with a person or entity as described therein, then SELLER shal[pay BROKER a leasing fee of Eight (8%~ of gross rate which shall be due and payable upon execution of the lease or as otherwise agreed in writing. As security for BROKER's commission, SELLER hereby grants to BROKER a security interest in the proceeds from the sale or lease of the Property described herein and any title company or other closer who conducts the closing on the sale or lease of the Property described herein is directed to disburse the BROKER's commission provided hereunder to the BROKER at the time of closing. NOTICE REGARDING CLOSING After a purchase agreement for your property is signed by both Seller and Buyer, arrangements must be made to close the transaction. Seller may arrange for a qualified person, including Seller's attorney, to conduct the closing for you. Page 2 Thorpe Bros., Inc. will arrange to provide closing services for its client's, generally through Chicago Ti[lc for a charge of $ 350.00 , payable at the time of closing. All documents related to the closing will be available for review by your attorney, accountant or financial advisor at the closing or prior to the closing upon your request. As Seller, indicate below whether you will arrange for others to conduct the closing or whether you wish to have Thorpe Bros., Inc. arrange for the closing of your transaction for the charge listed above. This will be decided upon an offer to purchase the property. !Please Initial ~ Seller wishes to have Thorpe Bros., Inc. arrange to provide closing services. Seller will arrange for a qualified closing agent or his attorney to perform the closing of this transaction. SELLER'S REPRESENTATIONS SELLER has full legal fight to sell the Property. SELLER certifies that as of ![he ~ate of exge%tion of this Agreement, SELLER has not received any notice of building, health or f'~ code~iola~lbns, ~c~ e.f..ha~a.r, flous-wa~to, ontlh'oa~erty. . City Manager~ff~/~ayo~~ Thorpe /~ -FOR. I~ITURE OF EARNEST MOI~qEY If a Buyer of the Property defaults andas a result forfeits the earnest money, SELLER will receive ,.~0 percent and BROKER will receive. ~0 percent of the earnest money. SUB-AGENTS AND BUYER'S BROKERS I hereby permit you to share part of your commission with other real estate brokers, including brokers only representing the Buyer. MISCELLAlq'EOUS 10. This Agreement is binding upon the heirs, successors, and assigns of the parties. 11. All of the representations and covenants of this Agreement shall survive and be enforceable after termination of the Agreement. 12. This Agreement constitutes the complete agreement between the parties and supercedes any prior oral or written agreements between the parties relative to the provisions herein. No amendment, modification or extension of this Agreement shall be valid or binding unless made in writing and signed by both SELLER! and BROKER. 13. This contract shall be governed by the laws of the State of Minnesota. City of New HQpq~. Thorpe Bro~,, Ing, . SE~. ~ , BROKER UT:cid/UT-1 Page 3 ~ EDA REQUF~T FOR ACTION originating Department Approved for Agenda Agenda Section City Manager EDA -26-95 Kirk McDonald Item No. By: Management Assistant By: 6 RESOLUTION APPROVING PLANS AND SPECIFICATIONS FOR LANDSCAPING AT 7901/7909 51ST AVENUE NORTH (IMPROVEMENT PROJECT NO. 505) The enclosed resolution approves the plans and specifications for landscaping at 7901/7909 51st Avenue North (formerly 5009 Winnetka Avenue North). The property was purchased from HUD in February, 1994, for scattered site housing purposes. The original structure located on the property was torn down and a handicap accessible twin home is currently being built on the site. The City Forester developed the enclosed landscaping plan. The plan incorporates both new and existing landscaping. At this time staff would like to obtain bids to landscape the property. Since this project was initiated, it has been the City's intent to provide landscaping at the site once construction is complete. The enclosed resolution approves the plans and specifications for landscaping at 7901/7909 51st Avenue North and staff recommends approval of the resolution. RFA-O01 ~ CITY OF NEW HOPE RESOLUTION NO. RESOLUTION APPROVING PLANS AND SPECIFICATIONS FOR LANDSCAPING AT 7901/7909 51ST AVENUE NORTH (IMPROVEMENT PROJECT NO. 505) WHEREAS, the City Forester has prepared plans and specifications for the landscaping at 7901/7909 51st Avenue North and has presented such plans and specifications to the Council for approval; NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of the City of New Hope, Hennepin County, Minnesota: 1. Such plans and specifications are hereby approved. 2. The City Clerk is authorized to obtain written quotes from landscaping contractors. Adopted by the Economic Development Authority in and for the City of New Hope, Hennepin County, Minnesota, this 26th day of June, 1995. President Attest: Executive Director LANDSCAPE SCHEDULE 7901 & 7909 51ST Quantity; Common Name; (Botanical); Size; TREES: 18 7 Black Hills Spruce UBHS" 6' b & b (Picea glauca densata) 3 Red Splendor Crab "RSC' 2" b & b (Malus "Red Splendor") 3 Quaking Aspen "QA" 2" b & b (Populus tremuloides) 3 Red Oak "RO" 2 1/2" b & b (Quercus mbra) 2 Greenspire Linden "GL" 2" b & b Crilia cordata' "Greenspire") SHRUBS: 53 13 Scandia Juniper "SJ' 24" - 5 gal. (lunipems sabina "Scandia") 6 Dwarf Korean Lilac "DKL" 24" - 5 gal. (Syringa palibiniana) 7 Goldflame Spirea uGS" 18" - 2 gal. (Spirea Japonica Goldflame) 12 Alpine Currant "AC" 24" - 5 gal. (Ribes alpinum) 3 Charles Joly Lilac "CJL" 36" - b & b (Syringa vulgaris C Joly) 3 American Cranberry Bush "ACB" 36" - b & b (Viburnum trilobum) 9 Tauton Yew uTY" 24" - b & b (Tarns x media "Tauntoni") PLANT INSTALLATION Specific and General Requirements SPECIFICATION REFERENCE: Unless otherwise noted or modified herein, all sections of MnDOT 2571 shall apply. DESCRIPTION: This work shall consist of furnishing and planting trees, shrubs and perennials of the species, variety, grade and size or age, complete in place at the locations designated in the Plans or as directed by the Landscape Architect. Thc specifications, include the protection, maintenance and satisfactory plant establishment and clean up of the site upon completion. Work shall be accomplished by firms specializing in type of work being done. All planting shall be done by a qualified contractor. Work shall be pcrl'ormed by experienced personnel familiar with planting procedures and under the supervision of a qualified planting supervisor. Guarantee and replacement of unsatisfactory plant ~natcrials. Plant maintenance and treatment of landscape materials. Nurse~ Plant Stock: Mn/DOT 3861 shall apply. Planting Soil Mixture: For planting holes, the planting soil shall be a prepared mixture composed of in place soil and Grade 2 compost blended at a mix ratio (by loose Volume) of 3 parts soil to 1 part compost. For planting beds, 3 inches of compost shall be placed and thoroughly mixed with the in place soils to obtain a uniform planting soil mixture for at least a 12 inch depth. Mulch: Mulch shall be shredded hardwood bark, processed, Mn/DOT Type 6. Edging;-Material: 1/8" x 4" deep steel edging. Color - Green as manufactured by Ryerson or equal. Tree Wrapping: Shall consist of a two-ply asphalt cemented crepe paper and shall be specifically designed and manufactured for horticultural use and have insect resistant qualities. ~ EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA 6-26-95 Kirk McDonald /~ Item No. By: Management Assistant By:It/ 7 RESOLUTION APPROVING CHANGE ORDER FOR CONSTRUCTION CONTRACT FOR 7901/7909 51ST AVENUE NORTH (IMPROVEMENT PROJECT NO. 505) At the May 8, 1995, Economic Development Authority meeting, the EDA approved a change order and Addendum to the Purchase Agreement for one half of the handicap accessible twin home being built at 7909 51 st Avenue North. The unit is being sold to T. Jeff Bangsberg with a closing scheduled for the. end of July. The change order which was approved at the May 8th, meeting, related to the construction of a gas fireplace and footings for a future 10' x 12' four season porch. After the EDA approved these changes, additional changes were requested by Mr. Bangsberg. The additional requests include wiring for a ceiling fan and a whirlpool tub with access deck in the bathroom. Because of these additional items, the change order cost has been increased to $4,368. These costs will be the responsibility of Mr. Bangsberg and the original purchase agreement will be amended to provide the additional $4,368 at closing. The Building Construction Contract the EDA signed with the builder, Equal Access Homes, Inc., requires EDA approval of any change orders. In addition, the purchase agreement between the EDA and Mr. Bangsberg for his half of the twin home needs further amendment to adjust the revised purchase price. The attached Resolution takes care of these items, and this Addendum will replace the Addendum approved at the May 8th, EDA meeting. Staff recommends approval of the resolution. Review: Administration: Finance: RFA-O01 ~ CORRICK & SONDRALL, P.A. STEVENA. SONDRALL ATTORNEYS AT LAW LEGAL ASSISTANTS MICHAEL R. LAFLEUR MARTIN P. MALECHA Edinburgh Executive Office Plaza LAVONNE E. KESKE WILLIAM C. STRAIT 8525 Edinbrook Crossin~ SHARD. O. DERBY Suite #203 Brooklyn Park, Minnesota 55443 TELEPHONE (612) 425-5671 FAX (612) 425-5867 June 20, 1995 Mr. Daniel J. Donahue Executive Director EDA in and for the City of New Hope 4401Xylon Avenue North New Hope, MN 55428 RE: 7901 - 7909 51st Avenue North Our File No: 99.11124 Dear Dan: The property at 7901 - 7909 is owned by the EBA and is the site of a handicap accessible twin home now under construction. One of the two units has been so]d, with a closing scheduled for the end of July. You may recall that the EDA approved a change order and Addendum to Purchase Agreement at its May 8, 1995 meeting. Those documents related to additions to the construction contract requested by the property purchaser, T. Jeff Bangsberg, and called for additional construction in the form of a gas fireplace and footings for a future 10' x 12' four-season porch. Subsequent to the EDA's approval of those changes, Mr. Bangsberg has requested further additional construction and has revised the dollar figures with the builder. The Building Construction Contract the EDA has signed with the builder, Equal Access Homes, Inc., requires EDA approval of any change orders. In addition, the purchase agreement between the EDA and Mr. Bangsberg for his half of the twin home needs further amendment to adjust the revised purchase price. The enclosed Resolution takes care of these items, and this Addendum will replace the Addendum approved at the May 8, 1995 meeting. The enclosed Resolution can be passed at the next EDA meeting. I will then provide originals of the various documents for signatures by you and Ed on behalf of the EDA. Daniel J. Donahue June 20, 1995 Page 2 Do not hesitate to contact me if you have any questions. Sincerel,y, ~,: Martin .P. Malecha s3t Enclosures cc: Valerie Leone, City Clerk (w/eric Kirk McDonald, Management Asst. (w?e'~c) Sarah Bellefui1, Administrative Asst. Steven A. Sondra11, Esq. EDA RESOLUTION NO. 95- RESOLUTION APPROVING CHANGE ORDER FOR CONSTRUCTION CONTRACT FOR 7901 - 7909 51ST AVENUE NORTH WHEREAS, the Economic Development Authority in and for the City of New Hope (EBA) has entered into a Purchase Agreement to sell Lot 1, Block 1, Marky Addition, to T. Jeff Bangsberg (Bangsberg), and WHEREAS, the EDA has entered into a Building Construction Contract with Equal Access Homes, [nc. to construct a twin home on Lots 1 and 2, Block 1, Marky Addition, and WHEREAS, the EDA approved at its May 8, 1995 meeting a Change Order to said construction contract and an Amendment to said purchase agreement to allow the construction of 7909 to include a gas fireplace and footings for a 10' x 12' four-season porch, and WHEREAS, the cost of the fireplace and the footings has been revised, and WHEREAS, Bangsber9 also wishes to include in the construction certain other items, including the wiring and hanging of a ceiling fan, construction of a whirlpool with deck, and the increase to a 50-gallon water heater, and WHEREAS, the Building Construction Contract requires a signed Change Order for Bangsberg's requested additional options, and WHEREAS, Bangsberg understands that approval of this Change Order by the EDA does not create any requirement on the part of the EDA or the City of New Hope to approve the construction of the actual four season porch at some time in the future, and WHEREAS, approval of the Change Order will also require Bangsber9 to amend the Purchase Agreement and provide an additional $4,368.00 cash at closing, and WHEREAS, the Addendum to Purchase Agreement attached hereto as Exhibit A, which Addendum includes an attached Construction Change Order, shall supercede and replace that certain Addendum to Purchase Agreement and Change Order approved by the EDA at its May 8, 1995 meeting. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. The Addendum to Purchase Agreement attached hereto as Exhibit A is approved and the President and Executive Birector are authorized and directed to sign the Addendum on behalf of the EDA. 2. The Contract Change Order attached to Exhibit A is also approved, and the President and Executive Director are authorized and directed to sign said Change Order on behalf of the EDA. 3. The Addendum to Purchase Agreement attached hereto as Exhibit A together with the attached Construction Change Order shall supercede and replace that addendum to purchase agreement and the change order approved at the May 8, 1995 meeting. 4. That the foregoing resolutions and authorizations are made with the understanding that the EDA and the City of New Hope do not authorize construction of a porch on the property and have no obligation to approve such construction in the future. Adopted by the Economic Development Authority in and for the City of New Hope this day of , 1995. Edw. J. Erickson, President At t est: Daniel J. Donahue, Executive Director ADDENDUM TO PURCHASE AGREEMENT This is an Addendum to that certain Purchase Agreement dated March 3, 1995, by and between the Economic Development Authority in and for the City of New Hope as Seller and T. Jeff Bangsberg as Buyer regarding certain property legally described as Lot 1, Block 1, Marky Addition, known as 7909 51st Avenue North, New Hope, Hennepin County, Minnesota. Seller and Buyer hereby agree as follows: 1. Conflicts. If there are conflicts between the language of this Addendum and the Purchase Agreement and any previous Addendum, the language of this Addendum shall control. 2. Additional Construction. At the request of Bangsberg, the construction of the dwelling on the property shall be amended to include a gas fireplace; footings for a future 10' x 12' four season porch, wiring and hanging of a ceiling fan, whirlpool with deck, and 50-gallon water heater, all as detailed in the attached Contract Change Order. 3. Price. In consideration for the additional construction by Seller, Bangsberg agrees the purchase price shall be increased by $4,368.00 to $89,368.00, and the cash to be provided by Bangsberg at closing shall be increased to $23,618.00. 4. Approval of Porch Construction. Bangsberg acknowledges and agrees that Seller's agreement to amend the construction contract to provide footings for a four season porch is not an approval to build said porch at a future date. Bangsberg acknowledges and agrees he will make all appropriate building and zoning code applications to the City for any future porch construction and agrees to pay all fees for permits, inspection or other costs associated with such an application. Further that any approval of a future porch construction will be subject to any and all building and zoning code requirements applicable at the time the application is made. The construction of the footings shall not be construed as a guarantee or warranty that a future porch construction will be approved or complies with setback provisions or other requirements of the building or zoning codes. This paragraph shall also survive the closing and not be subject to the doctrine of merger. Dated: , 1995. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, Seller By Its Executive Director Dated: , 1995. T. Jeff Bangsberg, Buyer c:\ w p5 l\cnh\Bangsberg.3r d EXHIBIT A Contract Change Order 6412 CAHILL AVE ~DATE INVIH~ GROVE HOTS, MN. 55076 June 12, 1995 7909 - 51st Ave North CONTRACT JOB NO. CITY OF NEW HOPE ~505 4401 XYLON AVE NORTH PREP~R~OS¥ NEW HOPE, MN. 55428-4898 WORK TO BEGIN BY WORK TO BE , --' ~COMPLETED BY / / I I I II II I I I I I Il I · II I J CHANGE ORDER FOR BUILDING CONSTRUCTION FOR 7901 - 7909 5let AVENUE NORTH This change order shall alter and amend that certain Building Construction Contract for 7901 - 7909 51st Avenue North by and bet- ween Equal Access Homes, Inc., a Minnesota corporation (herelnaf%er Builder), and the Economic Development Authority in and for the City of New Hope (hereinafter Owner) dated April 26, 1995. 1. The plans and specifications for the construction of the dwelling on the property shall be amended elude the following as additional cons%ruction for the 7909 unit: a. fireplace, including footings, doghouse and electrical and gas service to the fireplace, - $~3390.00 b.footings for 10' x 12' future four season porch at rear of 7909 - $1230.00. c. ceiling fan, wiring and hanging of HomeOwners ceiling fan - $65.00 continued on page 2 The wm'k em, lm~ to, this omar shall be I~rformed under the same Term.n and condition~ as that included in the Original C~ntract. I I III III III I IIII I I I _ II I I Changes Approved . ........ Pm REVIOUS CONTRACT AMOUNT $169,808.00 AMOUNT OF THIS ORDER $ 4368 . 0 0 TOTAL CONTRACT AND EXTP~S $174,176.00 ~ 450 1330 EQUAL ACCESS HO PO,3 , Contract Change Order EQUAL ACCESS HOMES, INC. [NO Page 2 of 2 ...I 6412 CAHILL AVE XNVER GROVE HEIGHTS, MN. 55076 IT'--O: -- 7909 - 51st AVE NORTH CONTRACT JOB NO. CITY OF NEW HOPE ~505. I~EPARED BY 440I XYLON AVE NORTH WORK TO NEW HOPE, MINNESOTA 55428-4898 ~EGINSY // / WORK TOBE / / -- -- ~OOMPLETEO e¥. I I [ III I I I d. whirlpool With deck - $1650.00 e. 50 Gallon water heater - $75.00 f. credit appliance allowance - $2200.00 g. bonding cost increase - $158.00 2. The contract price to be paid by the Owner to Builder shall be increased by $4368.00 to $174,17§.00 3. Builder shall suppZy an increased Performance Bond and Labor and Material Bond to cover the increase in the contract price. The ~ork ~co~md by this order shall I~ performed under the same Terms ~md condition~ ss that induded in the Ori~tn~ Contract I I _ II I IIIII I III IIII I I I Changes Approved ~ IPREVIOUS CONTRACT AMOUNT S 169 · 808.00 · AMOUNT OF THIS ORDER $ 4368 · O0 TOTAL CONTRACT AND EXTRAS $ 174, 1'76.00, , E-Z~Fem~ IrOl~MNO EZ ~,~ '~ EDA ) R t .Sr A rIO Originating Department Approved for Agenda Agenda Section City Manager EDA (~-26-95 Kirk McDonaldi~ Item No. By: Management Assistant By:l//// 8 RESOLUTION CALLING FOR A CLC~ED MEE 9SED TING OF THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AUTHORIZED BY MINN. STAT. §471.705 TO DISCUSS LITIGATION/SETTLEMENT STRATEGY ON 5501 BOONE AVENUE CONDEMNATION The City has requested that the Economic Development Authority conduct a closed meeting to discuss litigation/settlement strategy on the 5501 Boone Avenue condemnation. The attached resolution allows for the closed meeting. Staff recommends approval of the resolution. MOTION BY ~~~-~ SECOND BY //~ I Review: Administration: Finance: RFA-O01 ~ RESOLUTION NO. 95- RESOLUTION CALLING FOR A CLOSED MEETING OF THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AUTHORIZED BY MINN. STAT. §471.705 TO D~SCUSS LI'rIGAT~ON/SETTLEM~NT ~TRATEG¥ ON 55~1 BOONE AVENUE CONDEMNATION WHEREAS, Minn St.st., §411 .705, 8ubd. 1 (d) authorizes and ~,~':'~;.s the New Hope Economic Development Authority to hold a c~ed meeting to d~scuss City ~ssues and tnform&tion protected by ~he ~':torne)'-cl~ent privilege, and ~H~REA~, the New Hope Economic Development Au%hority h~s commenced or has been made a party to a lawsu{t or been threatened with ]~tiga[~on which has presently activated its right under [he referenced statute to hold a closed meeting, and ~HERE~S, specf~ica]ly the Economic Development Authority is a party ~o a lawsuit commenced pursuant to Minn Sta~. Chap, 117 identified as Hennep~n County D~str~c[ Court F~le No, CD-2290 fo~ the purpose of acquiring property by the right of eminent domain at 5501 Boone Avenue North, and WHEREAS, a closed meeting of the NeW Hope Economic Development Authority is necessary to consider the appeal of a jury verdict and ~o consider various legal strategies for the continued prosecution mr defense of said action. NOW, THEREFORE, BE IT RESOLVED by the Economic Development A~.,~thor~ty in and for the City of NeW Hope aS follows: That a closed meeting of the New Hope Economic Development Authority shall be held on June 28, 1995 immediately following the adjournment of the regular meeting of the New Hope City Council, or sd~ournment of the regular meetings of the New HOpe EDA or HRA in the event said public bodies have a regularly scheduled meeting on said day, et the New Hope City Council Chambers. ~. That the purpose of the meeting shall be the disoussion of Settlement alternatives and prosecution/defense s~rateglee in connection with litigation of Hennepin County D1S~ric~ Court F~e No. CD-2290_ 3. That said meeting shall not be open to the public. ~U~-23-95 F~I t3:40 ?,06/06 ThAt the New Hope City Clerk is hereby d~rected to tape record the closed meeting And preserve the t~pe recordin9 for ~ period of two years from the 'd~te of the meeting, That the New Hope City Clerk shal 1 prepare A written rol 1 of the member~ and al I other per~on~ pr'esent at The clo~ed meetin9 ~nd make ~id roll available for public inspection upo~ adjournment of th~ closed m~ting, Adopted 'by the New Hope Economic Development Authority this 25th day o~ June, 1995. Edw. J. Erickson, President At t e~t ~' Danie3 d. Donahue, Executive Director CORRICK & SONO~[,L P.A. STEVENA. SONDRALL ATTORNEYS AT LAW ~EG^L~ST~T~ MARTINMICHAELp.R'MALEcHALAFLEUR Edinburgh Executive Office Plaza LAVONNE E. KESKE WILLIAM C. STRAIT 8525 Edinbrook Crossing SHARON D. DERBY Suite #203 Brooklyn Park, Minnesota 55443 TELEPHONE (612) 425-5671 FAX (612) 425-5867 EDA Item 8 -- 6/26/95 d~ne 23, ~395 Distribution: City Council City Manager City Clerk Mt-. Daniel d. Domahue Cizv Manager Cit~ of New Hope 4401 Xyton Avenue North New Hope, MN 55428 RE' Jury Verdict/5501 Boone Avenue North Condemnation Trial Our File No: 99.53010 Dear Dan: As we discussed, the jury trial for the 5501 Boone Avenue North- condemnation lawsuit concluded on June 20, 1995. The jury returned a Yerdict for damages from the taking in the amount of $320,664.00 on June 21st after a full day of deliberation. Said verdict is $43,487.00 more than the Commissioners' award of $277,177.00. We have currently paid the property owner $208,282.75 against the award. Therefore, based upon this jury verdict, we now owe the property owner an additional $112,381.25 plus judgment interest of an additional $10,479.83 computed from June 1, 1993, our inttiai date of possession. Also added to this amount wilt be the property owner's trial costs and expert witness fees. A rough estimate of these costs may be $2,000 to $3,000 additional dollars. ! do not recommend an appeal from this verdict. Obviously, the jury did not take into consideration or believe the expensive soil correction costs necessary at the property. However, the appraisal testimony presented by the property owner established a value of $372,000.00. As a result, the jury did consider some diminution in value for soil conditions but not to the extent necessary to support our property value estimate. I do not believe there are any errors in law that could form the basis for an appeal or for a new trial. Basically, an appeal would be a determination as to whether the evidence supports the jury award. While I still do not agree with the jury's estimate of value, I do Mr. Daniel J. Oonahue June 23, 1995 Page 2 not believe the appellate court would overrule the jury verdict in this case. Therefore, it would seem any appeal would simply be throwing good money after bad. I will be happy to elaborate further as to why the jury decided this case the way it did at the closed meeting. Basically, I think we underestimated the sympathy for private property owners when private property is taken from a seller and is proposed to be given to another private individual by the governmental condemning authority. In these kinds of cases, jurys have a tendency to award larger verdicts to the private property owner losing his land. Also, it seems like the present climate makes people like those serving on the jury distrustful of government. Of course, this is just speculation on my part and I will be happy to answer all questions regarding this matter at the executive session. Very truly yours, CRIGINALS~INED aY STEVEN& 8ONDRAIJ. steven A. Sondrall slf2 cc: Valerie Leone bps" Val, this is a confidential letter not subject to the Data Practices Act. Therefore, do not include it in the information given to the public at lar9e.