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
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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.