072495 EDA Official File Copy
CITY OF NEW HOPE
EDA AGENDA
EDA Regular Meeting #11 July 24, 1995
Agenda #12
President Edward J. Erickson
Commissioner W. Peter Enck
Commissioner Pat LaVine Norby
Commissioner Gerald Otten
Commissioner Terri Wehling
1. Call to Order
2. Roll Call
3. Approval of Minutes of June 26, 1995
4. Discussion Regarding Market Study Proposal for Winnetka Shopping Center by
Northwest Associated Consultants, Inc. in the Amount of $9,500
5. Motion Accepting Appraisals and Authorizing Staff to Proceed to Negotiate with
Property Owners to Purchase Properties at 7609 Bass Lake Road and 5520 Sumter
Avenue for Bass Lake Road Extension Housing Redevelopment Project
(Improvement Project No. 541)
6. Resolution Authorizing the Purchase of 5559 Sumter Avenue North (Improvement
Project No. 541)
7. Motion Approving Quote Submitted by Evergreen Land Services Company for
Relocation Services for the Bass Lake Road Redevelopment Project (Improvement
Project No. 541)
8. Motion Approving Quote from Wrobleski's Lawn Service in the Amount of
$8,300.60 for the Landscaping for Property at 7901/7909 51st Avenue North
(Improvement Project No. 505)
9. Resolution Authorizing Publication of Notice and Holding of a Public Hearing
Regarding Sale of 7901 51st Avenue North (Improvement Project No. 505)
10. Request Approval of the Minnesota City Participation Program (MCPP)
AppliCation Commitment Agreement for Participation in the Minnesota City
Participation Program
EDA Agenda 7/24/95
Page 2
11. Resolution. Approving Gill Brothers Funeral Chapel, Inc. Exclusive Negotiations
Agreement and Authorizing the President and Executive Director to Sign
(Improvement Project No. 523)
12. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
Approved EDA Minutes June 26, 1995
Meeting//10
CALL TO ORDER President Erickson called the meeting of the Economic Development
Authority to order at 8:42 p.m.
ROLL CALL Present: Erickson, Enck, Otten, Norby, Wehling
Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil
APPROVE MINUTES Motion was made by Commissioner Enck, seconded by Commissioner
Norby, to approve the EDA minutes of June 12, 1995. All present voted
in favor. Motion carried.
IMP. PROJECT 523 President Erickson introduced for discussion Item 4, Discussion Regarding
Item 4 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).
President Erickson pointed out the EDA's previous decision to discourage
additional auto-oriented businesses along the 42nd Avenue corridor.
Commissioner Norby inquired that the City should encourage expansion of
existing businesses. She asked whether a staff member spoke to a
representative of Champion Auto.
Mr. Donahue replied the written correspondence was the only form of
communication to date. He stated their proposal is asking the City to
finance $190,000 of $200,000.
Commissioner Enck commented that Champion Auto has the capacity to
expand its existing facility, and if they did purchase the city-owned
property it appears unlikely that they would utilize the entire parcel.
Commissioner Norby expressed the need for the EDA to review its financial
assistance/participation guidelines for development requests. It was
agreed to discuss this at a future work session.
Mr. Donahue asked the Council if it wishes to continue its policy of not
considering auto-oriented uses for this property. At this time the Council
chose to continue with this policy and give consideration to a proposal
submitted by Gill Brothers Funeral Chapels, Inc.
IMP. PROJECT 523 President Erickson introduced for discussion Item 5, Discussion Regarding
Item 5 Purchase Agreement Submitted by Gill Brothers Funeral Chapels, Inc. for
City-owned Parcel at 42nd and Nevada Avenues (Improvement Project No.
523).
Mr. Donahue stated the Gill Bros. offer is for $200,000 and the request
before the City is for a Iow interest loan.
New Hope EDA June 26, 1995
Page 1
President Erickson felt a funeral chapel would fit well in the location and
noted that these businesses typically have beautiful settings (structure,
landscaping, etc).
President Erickson recommended that staff meet with Gill Brothers and
have them present a concrete financial offer, site plan, landscaping, traffic
plan, etc. at a future meeting.
Commissioner Enck questioned representatives of Gill Brothers Funeral
Chapels as to how they would propose the traffic pattern if the County
denies direct access to 42nd Avenue.
Mr. Daniel McGraw, President of Gill Brothers Funeral Chapels was
recognized. He introduced Norm Cole, an architect of Miller Construction,
who is available to answer technical questions.
Mr. McGraw stated due to the concrete median, direct access to 42nd
Avenue would serve westbound traffic only. He stated the traffic light on
42nd and Nevada provides excellent access and he is willing to work with
the City and Hennepin County.
Mr. McGraw commented that if the EDA is interested in the proposal he
will proceed with preparation of site plans. He noted this development
would have a tax value of approximately $1,000,000.
Mr. Sondrall, City Attorney, reminded the EDA that Oregon Estates has a
license agreement with the City which allows a directional sign on the
southeast corner of the property.
Mr. McGraw did not believe the sign would create any problem as it would
be near the funeral chapel's parking lot.
IMP. PROJECT 505 President Erickson introduced for discussion Item 6, Resolution Approving
Item 6 Plans and Specifications for Landscaping at 7901/7909 51 st Avenue North
(Improvement Project No. 505).
EDA RESOLUTION Commissioner Wehling introduced the following resolution and moved its
95-10 adoption: "RESOLUTION APPROVING PLANS AND SPECIFICATIONS FOR
Item 6 LANDSCAPING AT 7901/7909 51ST AVENUE NORTH (IMPROVEMENT
PROJECT NO. 505)". The motion for the adoption of the foregoing
resolution was seconded by Commissioner Enck, and upon vote being
taken thereon, the following voted in favor thereof: Erickson, Otten, Enck,
Wehling; and the following voted against the same: Norby; Abstained:
None; Absent: None; whereupon the resolution was declared duly passed
and adooted, signed by the president which was attested to by the
executive director.
IMP. PROJECT 505 President Erickson introduced for discussion Item 7, Resolution Approving
Item 7 Change Order for Construction Contract for 7901/7909 51st Avenue
North {Improvement Project 505).
EDA RESOLUTION Commissioner Enck introduced the following resolution and moved its
95-11 adoption: "RESOLUTION APPROVING CHANGE ORDER FOR
Item 7 CONSTRUCTION CONTRACT FOR 790117909 51ST AVENUE NORTH
{IMPROVEMENT PROJECT NO, 505)". The motion for the adoption of the
New Hope EDA June 26, 1995
Page 2
foregoing resolution was seconded by Commissioner Wehling, and upon
vote being taken thereon, the following voted in favor thereof: Erickson,
Otten, Enck, wehli~i ~d the following voted against the same: None;
Abstained: None; Absent: Norby; whereupon the resolution was declared
duly passed and adopted, signed by the president which was attested to
by the executive director.
5500 BOONE President Erickson introduced for discussion Item 8, Resolution Calling for
Item 8 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.
EDA RESOLUTION Commissioner Enck introduced the following resolution and moved its
95-12 adoption: "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". The motion for
the adoption of the foregoing resolution was seconded by Commissioner
Wehling, and upon vote being taken thereon, the following voted in favor
thereof: Erickson, Otten, Enck, Wehling; and the following voted against
the same: None; Abstained: None; Absent: Norby; whereupon the
resolution was declared duly passed and adopted, signed by the president
which was attested to by the executive director.
ADJOURNMENT Motion was made'by Commissioner Wehling, seconded by Commissioner
Enck, to adjourn the meeting. All present voted in favor. The New Hope
EDA adjourned at 8:37 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA June 26, 1995
Page 3
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
Approved EDA Minutes June 26, 1995
Executive Session-
CALL TO ORDER The New Hope Economic Development Authority met in executive session
pursuant to due call and notice thereof; President Erickson called the
meeting to order at 8:42 p.m.
ROLL CALL Present: Erickson, Enck, Otten, Norby, Wehling
Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald
5501 BOONE AVENUE The City Attorney reported on the jury verdict of the 5501 Boone Avenue
condemnation lawsuit and discussed appeal alternatives.
The City Attorney recommended payment of the award.
MOTION Motion was made by Commissioner Enck, seconded by Commissioner
Otten, authorizing the City Attorney and staff to proceed with payment of
the award and payment of the interest as calculated by the City Attorney.
Voting in favor: Erickson, Enck, Otten; Abstained: Norby, Wehling.
Motion carried.
ADJOURNMENT Motion was made by Commissioner Enck, seconded by Commissioner
Wehling, to adjourn the meeting. All present voted in favor. The New'
Hope EDA adjourned its Executive Session at 8:55 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA June 26, 1995
Page I
EDA
~~q~ REQUF.~T FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
Kirk McDonald .~ 7-24-95 Item No.
4
By: Management Assistant By: ~
DISCUSSION REGARDING MARKET S~T~Y PROPOSAL FOR WINNETKA SHOPPING CENTER
BY NORTHWEST ASSOCIATED CONSULTANTS, INC. IN THE AMOUNT OF $9,500
At the June 12th EDA meeting the EDA discussed a proposal from Northwest Associated Consultants,
Inc. (requested by City staff) to conduct a Market Study for the Winnetka Shopping Center in the amount
of $9,500. The study would have a specific focus on the vacant Super Valu site and is intended to
provide an objective analysis of area retail market conditions, which could serve as the basis for
formulating economic development strategies for the promotion and improvement of Winnetka Shopping
Center. The study would be subdivided into the following sections.
1. Delineate and Describe Areas of Influence
2. Interview Shopping Center Property Managers for New Hope's Six Major Shopping
Centers
3. Site Evaluation of Winnetka Center
4. Market Analysis and Findings
The EDA tabled discussion on this issue at the June 12th meeting. While several EDA members were
supportive of the study, the general consensus was that the City should not fund the entire study. The
EDA directed staff to contact Winnetka Associates to determine if they would be willing to split the cost
of the study on a 50/50 basis. Staff sent the enclosed letter and a copy of the Market Study proposal to
Building Management Inc., managers for the center. They have responded in the affirmative, are very
interested in the study being completed, and the City has received a check from Building Management,
Inc. in the amount of $4,750 (one-half of the cost of the study).
Staff recommends approval of a motion approving the Market Study for Winnetka Shopping Center, with
the City and Winnetka Associates/Building Management, Inc. sharing costs on a 50/50 basis.
'- a 'J U
Review: Administration: Finance:
RFA-O01 ~
June 19, 1995
Ms. Lawana Varajon, Operations Manager
Building Management, Inc.
5353 Wayzata Boulevard, Ste. 210
Minneapolis, MN 55416
Subject: Market Study Proposal for Winnetka Center/Vacant Super Valu Site
Dear Ms. Varajon:
As you are aware, the New Hope City Council and staff are extremely interested in maintaining the
Winnetka Shopping Center as a viable, active retail center in the City. With the recent departure of the
Super Valu Supermarket, the Winnetka Center is left with a significant vacancy. This vacancy prompted
the City Council, in part, to undertake the current "Shop New Hope" promotion, which has been very
successful to date. The City has committed approximately $35,000 for this campaign to make New Hope
residents aware of retail shopping opportunities in the City and to assist our retail business centers in
maintaining their economic vitality.
In light of the City Council's concern for the retail environment, and particularly their concern for the vacant
space at the Super Valu site, the City has requested a market study proposal and cost estimate from the
City's Planning Consultant. The enclosed proposal from Northwest Associated Consultants, was considered
by the New Hope Economic Development Authority at their June 12th meeting. The study would focus on
how the City, in conjunction with your firm, could promote the reuse of this large retail space. The market
study would also provide an objective analysis of area retail market conditions which could serve as the basis
for tbrmulating economic development strategies for the promotion and improvement of the entire Winnetka
Shopping Center. The City desires to be pro-active in assisting you in finding a suitable tenant to make use
of this space, as well as developing long-term strategies to maintain/improve the market conditions at
Winnetka Center. -
The Economic Development Authority is willing to split the cost of the enclosed market study proposal with
the owners/managers of Winnetka Center on a 50/50 basis so that we may act in a partnership to address
the concern outlined in this letter and the attached report. Please review the enclosed proposal and contact
me (531-5112) or my assistant, Kirk McDonald (531-5119), so that we can schedule a meeting in the near
future to discuss this market analysis for Winnetka Center.
Si erel~y,
City Manager
Enclosure: Market Analysis Proposal for Winnetka Center
cc: City Council ~3f~ .~
Family Styled City~'~ .~r'~ ,~t^~ [,, .^~ For Family Living
, v '~ V ~'~
' Northwest Associated Consultants, Inc.
U R B A N P L A N N I NG DEs i G N . M A R K E T R E S E A R C H
8 June 1995
Mr. Dan Donahue
City Manager
City Administrative Offices
4401 Xylon Avenue No.
New Hope, MN 55428
RE: New Hope Market Analysis
FILE NO: 802
Dear Mr. Donahue:
This letter will serve to document our proposal to assist the City of New Hope with the
preparation of a Market Study for the City Center area with a specific focus on the Winnetka
Shopping Center. With the recent departure of the Super Value Supermarket, the Winnetka
Center is left with a significant vacancy. Debate has occurred as to how the City should promote
the reuse of this large retail space. Should another grocery store be pursued, or should other types
of retail businesses be explored? The Market Study is intended to provide an objective analysis
of area retail market conditions which will serve as the basis for formulating economic
development strategies for the promotion and improvement of the Winnetka Shopping Center.
NAC has served New Hope in the preparation of community market studies in 1985 and 1989.
These past market studies have proved to be accurate and insightful in assisting New Hope in
identifying available retail market opportunities. In accordance with the fmdings of the 1985
market study, the New Hope Mall was purchased and redeveloped using a large
recreational/entertainment use and sit down restaurant as major anchors. While the New Hope
City Center contains a vacancy, the overall shopping center displays a new vitality.
The 1989 market study identified a market demand for automotive supply and service retailers and
freestanding specialty type retailers. Consistent with these findings, an automotive tire business
became a major anchor tenant for the Winnetlm Commons Shopping Center. A freestanding
Army surplus retailer is now located at the comer of 42nd and Nevada.
5775 Wayzata Blvd.-Suite 555 .St. Louis Park, MN 55416. (612) 595-9636.Fax. 595-9837
Mr. Dan Donahue
Page Two
These past studies will be of substantial help in tracing market trends and conditions. The
availability of these reports provides format and historical data that will be used to reduce project
costs and is reflected in our budget estimate. To the extent possible, we will utilize past studies,
however, all background information must be updated to reflect the current demographic and
market conditions existing in New Hope and its extended trade area.
The Market Study will provide a relatively objective evaluation of the community. The basis for
conclusions will include statistical calculations based on population, income, shopping and
spending habits, and allocation of developed space. The Market Study will also involve interviews
with the property managers of New Hope's shopping centers to provide input from the affected
commercial properties. Through this process, policy and philosophic bias is as a consequence
minimized.
The following outlines our study approach and allocation of costs:
I. Delineate and Describe Area of Influence
Assemble and update background data
Inventory local and competitive retail locations
Describe historic growth trends
Estimate current levels of study area demand
Estimate local and trade area spending trends
Determine transportation patterns and traffic volumes
Describe historic retail sales trends
Estimated Cost ............................................................... $3,500.00
II. Interview Shopping Center Property Managers for
New Hope's Six Major Shopping Centers
Estimated Cost ............................................................... $1,200.00
Mr. Dan Donahue
Page Three
Site Evaluation of Winnetka Center
Identify the strengths and weaknesses of the Winnetka
Center as a retail location.
Estimated Cost ............................................................... $ 600.00
IV.Market Analysis and Findings
Delineate market areas
Describe historic market trends and changing conditions
Estimate current market demands
Project future market demands
Summarize f'mdings and retail options for the City
Estimated Cost ............................................................... $3,000.00
V. Administration/Coordination/Production
Startup meeting with staff to outline study objectives
Interview review meeting
Report production, graphics, copying, assembly
(10 copies of final report)
Secretarial
Estimated Cost ............................................................... $1,200.00
TOTAL PROJECT COST ................................................. $9,500.00
Public presentation would be conducted under the present contract for public meetings, and
therefore due to the uncertainty as to the number, would be an extra cost.
The technical aspect and assembly of the project report would be completed within a maximum
of 90 days from the date the City notifies NAC of authorization to proceed.
Mr. Dan Donahue
Page Four
Alan R. Brixius, Vice President of NAC would supervise the project, plus be responsible for
direct client contact and presentations. Daniel Wilson, an Associate, will participate in the project
providing technical expertise in the Market Study. NAC would also utilize members of its support
staff in data assembly and inventory work. Resumes of the NAC staff are attached for your
review.
Hopefully this letter responds to your request for a Market Study. Should there be any need for
clarification, do not hesitate to contact me. Additionally, I am available for a personal discussion
with the City Council, should this be desired.
Thank you for your consideration on this matter. We look forward to working with you, the City
Council and Planning Commission on this project.
Sincerely,
NORTHWEST ASSOCIATED CONSULTANTS, INC.
Alan R. Brixius
Vice President
Vice President
EDUCAT I ON
St. Cloud State University, St. Cloud, Minnesota, B.A. Urban
Affairs/Urban Planning
Minnesota School of Real Estate - General Curriculum
EXPERIENCE
1980 to Present: Planner/Research Analyst with
Northwest Associated Consultants,
Inc.
1979 - 1980: Community Planner with Midwest
Planning and Research, Inc.
AREAS OF SPECIALTY
Comprehensive
Planning: Assist local and regional
governments in the preparation and
implementation of comprehensive
plans. Involved with the
formulation of plans addressing
community land use, transportation,
natural resources and hous lng,
development management, policy
planning, land use and environmental
regulations and implementation.
Redeve 1 opment
Planning: Administrative and technical
assistance to local governments on
redevelopment and economic
development efforts including
specialized background in land use
market feasibility and tax increment
financing.
Site and Project
Planning: Planning and design of commercial,
industrial and residential
development with regard to site
function, land use compatibility and
coordination with support services
and utilities.
Market Research: Market feasibility projects for
housing and commercial developments.
ALAN BRIXIUS
Page 2
Demographic Ahalysis: Identify and project community
growth patterns and demographic
patterns for the purpose of
comprehensive park planning and
marketing research.
Grantsmanship: Preparation of grant applications
for Community Development Block
Grant Application.
Zoning Administration: Technical assistance to
municipalities in both the
formulation and implementation of
zoning and subdivision regulations.
PROFESSIONAL AFFILIATIONS:
American Planning Association
Minnesota Chapter of American Planning Association
Minnesota Planning Association
Minnesota Notary Public
Associate
EDUCATION
University of Minnesota, Bachelor of Science-Marketing
University of Minnesota, Graduate Work in Marketing, Finance, and
Economics
EXPERIENCE
1979-Present: Consultant Providing Professional
Assistance for Research, Development
and Management of Commercial,
Industrial and Housing Projects.
1976-1979: Executive Director, Waconia Housing
and Redevelopment Authority.
1972-1976: Assistant Executive Director,
LeSueur Housing and Redevelopment
Authority.
1969-1972: Loan Officer and Planning Intern,
Minneapolis Housing and
Redevelopment Authority.
AREAS OF SPECIALTY
Economic Development: Assist communities to identify
economic development opportunities
and obstacles, formulate strategies
and organize community for action.
Star Cities Program assistance and
grant writing provided.
Market Research: Market feasibility studies for
housing and commercial development,
land and unit absorption.
Tax Increment
Financing: Project feasibility and structuring,
development contract negotiation,
and preparation of development plan
and financing plan.
Central Business
District: Redevelopment strategies, functional
analysis, rehabilitation programs
and financing mechanisms.
Housing Projects: Planning, development and
implementation of subsidized and
market rate housing projects.
DANIEL WILSON
Page 2
Project
Management: Carry out project administration and
implementation of public and private
development projects.
Relocation: Implement regulations of Uniform
Relocation Act for residential and
commercial displacements.
PROFESSIONAL ASSOCIATiONS/LICENSES
Minnesota Real Estate License
National Association of Housing and Redevelopment Officials
Member
Minnesota Multi Housing Association - Member
Greater Minneapolis Area Board of Realtors - Member
Planner/Research Analyst
EDUCATION
St. Cloud State University, St. Cloud, Minnesota
Bachelor of Arts in Urban Affairs/Urban Planning
EXPERIENCE
1993-Present Planner/Research Analyst, Northwest
Associated Consultants, Inc.
1989-1993 Assistant Planner, City of Minnetrista,
Minnesota
1989 Planning Intern, City of Woodbury,
Minnesota
AREAS OF SPECIALTY
Site/Project Planning: Provide technical assistance in
subdivision and site plan review for
zoning ordinance and comprehensive plan
compliance.
Zoning Administration: Technical formulation and enforcement of
zoning and subdivision regulations and
amendments.
Comprehensive Plans: Assist local and regional governments in
the preparation and implementation of
comprehensive plans.
Environmental Provide formulation and implementation of
Planning: floodplain and shoreland regulations.
Data Research Provide technical assistance including
and Analysis: project research and analysis.
Planning Technician
EDUCATION
University of Minnesota, Minneapolis, Minnesota
Bachelor of Arts in Political Science
EXPERIENCE
1994 - Present Planning Technician, Northwest Associated
Consultants, Inc.
1993 Research Assistant,. Lunz Massopust Reid
and Co.
AREAS OF SPECIALTY
Comprehensive Plans: Assist local and regional governments in
the preparation and implementation of
comprehensive plans.
Data Research and
Analysis: Provide technical assistance including
project research and analysis.
Site/Project Planning: Provide technical assistance in
subdivision and site plan review for
zoning ordinance and comprehensive plan
compliance.
Zoning Administration: Technical formulation and enforcement of
zoning and subdivision regulations and
amendments.
//6~ EDA
REQUF~T FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
4-95 Kirk McDonald Item No.
By: Management Assistant By: / 5
MOTION ACCEPTING APPRAISALS AND/AUTHORIZING STAFF TO PROCEED TO NEGOTIATE
WITH PROPERTY OWNERS TO PURCHASE PROPERTIES AT 7609 BASS LAKE ROAD AND
5520 SUMTER AVENUE FOR BASS LAKE ROAD EXTENSION HOUSING REDEVELOPMENT
PROJECT (IMPROVEMENT PROJECT NO. 541)
At the May 8th Council meeting the City Council and staff discussed potential housing redevelopment
options in the Bass Lake Road Extension area. Staff indicated that properties would be acquired on a
voluntary, willing-seller basis. The Council authorized staff to obtain appraisals on two properties (7621
Bass Lake Road and 5559 Sumter Avenue), as these property owners had preViously contacted the City.
and indicated an interest in selling their properties to the City At the June 12th EDA meeting the EDA
accepted the appraisals on the first two properties, authorized staff to negotiate with the owners and
negotiations are currently underway.
Also, at the June 12th EDA meeting the EDA authorized staff to obtain appraisals on two additional
properties, as two additional owners had contacted the City. One property (7609 Bass Lake Road) is
located within the project area and one property is located directly adjacent to the project area (5520
Sumter Avenue) and could easily be incorporated into the redevelopment plan. BCL Appraisals has
completed the appraisals on the two additional properties and the "Fair Market Value" estimates and
compared to the January, 1995, assessed values below:
Property Owner Address Fair Market Value 1995 Assessed Value
Ronald/Sharie Huebner 7609 Bass Lake Road $65,000 (Land) $22,500
(Bldg) $47,500
$70,000
Patrick Olek 5520 Sumter Ave. No. $85,000 (Land) $20,500
(Bldg) $51,600
$72,100
MOTION BY r'~. SECOND BY
Review: Administration: Finance:
RFA-O01~
Page 2
July 24, 1995
If the EDA is interested in pursuing the acquisition of two additional properties, staff recommends that
the EDA approve a motion accepting the appraisals and authorizing staff to proceed to negotiate with
the property owners for possible purchase of the properties. All agreements would be brought back to
the EDA for final approval.
BASS LAKE ROAD HOUSING DEVELOPMENT
ADDRESS/PID OWNER/TAXPAYER ASSESSED VALUE
05-118-21-33-0028 NH Alano Group, Inc. Land: -0-
7615 Bass Lake Road Bldg: -0-
1. 05-118-21-33-0088 M. Hilgers Land: 19,500
7605 Bass Lake Road BIdg: 33,000
_~2. 05-118-21-33-0089 Bank of Am. Trustee Land: 22,~i
7609 Bass Lake Road Taxp: Ronald/Sharie Huebner Bldg: 45,000 ~
3. 05-118-21-33-0023 Beatrice Dolan Land: 21,500
7643 Bass Lake Road Bldg: 49,000
4. 05-118-21-33-0091 Timothy/Lois White Land: 21,500
7601 Bass Lake Road Bldg: 59,000
5. 05-118-21-33-0087 Kenneth Kunze Land: 21,000
7603 Bass Lake Road BIdg: 33,000
6. 05-118-21-33-0027 Jerome/Karla McBrady Land: 21,500
7621 Bass Lake Road Bldg: 56,000
05-118-21-33-0094 Roy Edison Land: 21,500
7608 55th Ave. N. Bldg: 78,000
05-118-21-33-0095 M. & B. Drenth Land: 21,500
7616 55th Ave. N. Bldg: 80,000
05-118-21-33-0096 Lowell Buss Land: 21,500
7624 55th Ave. N. Bldg: 76,000
05-118-21-33-0097 Arlene Peterson Land: 21,500
7700 55th Ave. N. Bldg: 70,000
05-118-21-33-0098 Dana Dempsey Land: 21,500
7708 55th Ave. N. Bldg: 60,000
05-118-21-33-0082 J. LaLiberte Land: 21,500
5559 Sumter Ave. N. Bldg: 42,000
05-118-21-33-0022 Betty Dejno Land: 21,500
5537 Sumter Ave. N. Bldg: 47,000
Exhibit E
BASS LAKE ROAD HOUSING DEVELOPMENT
,, ADDRESS/PID OWNER/TAXPAYER ASSESSED VALU~
05-118-21-33-0026 Gerald/Elaine Hanle Land: 22,500
5531 Sumter_Ave. N. Bldg: 52,000
05-118-21-33-0084 Tammy/Rome Kessler Land: 21,500
5519 Sumter Ave. N. Bldg: 47,000
05-118-21-33-0086 Kenneth Descant Land: 21,500
5509 Sumter Ave. N. Bldg: 55,000
05-118-21-33-0030 Ernest Opheim Land: 21,500
5501 Sumter Ave. N. Bldg: 44,000
05-118-21-33-0099 James/Pamela Schilling Land: 21,500
5510 Sumter Ave. N. 15195 Edgewater Circle Bldg: 33,000
Prior Lake 55372
(~ 5520 Sumter Ave. N. Bldg: 45,000
7. 05-118-21-33-0029 Douglas Hodgeman Land: 22,500
5530 Sumter Ave. N. Bldg: 39,000
8. 05-118-21-33-0024 John Dore Land: 21,500
5538 Sumter Ave. N. Bldg: 47,000
9. 05-118-21-33-0025 Luverne Peterson Land: 19,500
5546 Sumter Ave. N. Bldg: 52,000
Total all properties assessed value $1,612,600
Total 9 properties in minimum project $ 605,100
Exhibit E
BCL Appraisals, Inc. ~
Bjorklund, Carufel, Lachemnayer, Incorporated
File No. 95-0686-A
July 6, 1995
City of New Hope
4401 Xylon Avenue North
New Hope, Mn 55428
Attention: Kirk McDonald
Attached is the appraisal completed on July 6, 1995 for the property at:
7609 Bass Lake Road
New Hope, Mn 55428-3828
Sherri Huebner
The estimate 'Fair Market Value' as of July 6, 1995 is:
Sixty-Five Thousand Dollars $65,000
No responsibility has been assumed for matters which are legal in nature, nor has
any opinion on them been rendered other than assuming marketable title. Liens
and encumbrances, if any, have been disregarded and the property was appraised
as though free of indebtedness.
In this appraisal assignment, the existence of potentially hazardous material used
in construction or maintenance of the building, such as the presence of
urea-formaldehyde foam insulation, asbestos, and/or the existence of substances such
as toxic waste or radon gas, and/or the existence of any other environmental
influence that may adversely affect the value of the property, was not ob~.rve_d by me;
nor do I have any knowledge of the existence of such matenals/sub.stances/ln, nuences
on or in the property. The appraiser, however, is not qualified to detect sucn
materials/substances/influences. The existence of urea-formaldehyde foam insulation,
or other potentially hazardous material, or toxic waste or radon gas, may. have
effect on the value of the property. I urge the client to retain an expert in
this field if desired.
Please feel free to call if you have any questions.
We appreciate your business.
Sincerely,
BCL Appraisals, Inc.
2852 Anthony Lan~ So.h, Minn~apolia, Minne~ 55418 (612) 781-0605 Fax: 781-7826
UNIFORM RESIDENTIAL APPRAISAL REPORT Fi,. No. 9~-0686-A
I)ass Lake Road ci~New Hope StateMn ZipCode~5~28-]$28
Land Survey No 0848, Tracts ¢ & D coun~Hennepin
Assessor's Parcet No. Tax Year REm Taxes $1 · 00
Sorrower Current Owner Short i Huebner
HOA$ N/~'Mo
oct Name Map Reference 50-2A Census Tract
Sale Price $ ~/A Dale of Sate ~/A ~scnp~on and $ a~unt of loan c~r~s/concessions ~ ~ pai~ bY seiler ~/A
Lender/ClientC[ty O~ New Hope Address~01 Xylon Avenue No~th, New Hope,
Ad,mss 28 Lane Scut
mLJ'cation ~ u~an "~ Subu~an ~ ~,1 Predo~t Slngl~ f~ily housing ~res,t
Built up ~ ~er 75% ~ 25-7S~ ~ Un~r 25% occup~cy PRICE A~ ~, ,emily TS ~ ~t likely ~ Likely
Gro~hra~ ~,,d ~S~bta ~S,ow ~ner '(~)~0 Low "0 2-4family ~ ~,npmceas
Pmpe~valuea thcmasing ~ S~ble ~ ~cli~ng ~ Te~nt ~ Hiqh 70 M~6-fa~ . ~ TO:
m ~mand/Suppiy S~ ~ ~ ~ ~ V~(~ ;:.¢[.}~}[~¢~}~ Predominant ::~:~::':::::2 Commercial 1
m Ma~etinqtime Un~r3~s. 3~s. ~ ~er6mos. ~ v,c,nt(ov. 5%) 80 ~ 60
Nots: Race ~d the recta composition of the nelg~orhood ~e not appraisM factor~.
Neighbo~od~un~desmndcharactaristics: ~e[~h~Phood ~u~Pies conslst o~ 62nd Ave to the no~th~ Boone Ave
to the west Ave to the south and Cty Rd 81 to the east.
Factors that Mtact the maAetabitity el the prope~ies in the neighborhood (proximi~ to employment and amenities, employment stabiii~, appeal to market, etc.):
Attached Adden~.
Market conditions in the subject eeighborheod (including support for the above conclusions related to the trend of property values, demand/supply, and marketing time
- - such as data on competitive properties Ior sale in the neighborhood, description of the prevalence of sales and financing concessions, etc.):
and demand characteristics appear to be in balance Typical marketing time for homes in
hborhood is under three months. Rarketing time appears to be decreasing due to the
of interest rates. Rates are currently at 7.2~% to 7 [~/87, with zero to two points
)ical. All types of financing are avaiZable. 30 year mortgages are the norm.
Project Information for PUDe (It applicable) - - Is the developer/builder in control of the Home Owners' Association (HCA)? [] YES E~ NO
Approximate total number of units in the subject project Approximate total number of units for sale in the subject project
Dimeneioae 7[i X 202,2 Topography £lev ~' abv str lvl
site ama 1 [~ 162 SCl. Ft. comer Lot Size Average
SpociliczOmngclaooiflcalionanddeacdption R-a/High Density Residential s~pe Rectangular
Zoning compliance [] Legal (Ga~dlal~tuae) E-]Illegal [] Ho zoning Drainage Average
View Residential/Apts
Utilitlee Public Other Off.41telml~eveme~t~ Type Public Private Landscaping Minimal-
Electricity Street B[tuai. nous Odvewey Surtane Asphalt
Gas Gas Curb/gutter Concrete Apparent easements None apparent
Water [] Sidewalk Concrete FEMA Special Flood Hazard Area [] Yes [] No
Sanitary sewer Stro~t lights Yea FEMA Zone C Map 0ate 1-2-81
None -0001 B
Comments (aplm~nt adverse oo~emeata, oocma¢ill~. Ipecial asoossments, slide areas, illegal or legal nonconforming zoning, uae. etc.): See Attached
Ho. o! unite 1 Foundation Con Block Slab NO Area Sq. FL 0 Roof
to. of SIo~.s 1 F. xte~r w.~, HeRon itc cawl~ Yes , % Finished NO Ceiling Cn¢[ ~..
Type(DeL/Att) Detached R~fSur~c, Asph, Sh. Basement NO Ceiling No Walls Cncl. []
Design(Style) Rambler Guttaro&ownspts. Adeq OvrhR Sum~RmoNo Wails NO , !goer
Existing/Papered EziatinR WindowTypo Obl Hung O~mpnesa None noted Floor NO None
Age (Yrs.) 44 Storm/Screens COlab. Settlement None noted outside Envy No u....
Effective Aqe (Yr~,) '~0 I,~c~u~d ~ NO Ipfestatien None noted
ROOMS Foyer Uvine Dining Kitchen Den Fsmily I~, Rec. Rm. Bedrooms # Baths Laundry Other Ares Sq. Ft.
Level I [ I Area 1 ) 2 1
[] Level 2
iFinishe(I area above nre~ (~n~in~; ~ Roome: ] Bedroom(i): Z bath(a): 1. O~b Sam re Feet of Gross LJvino Area
INTERIOR Matadal~/Condition HEATING KiTCHEN EQUIP. ATI'IC AMENITIES CAR STORAGE
WNla Drywal[/AvR } Fuel N Gas Renge/Oven Stairs Patio Garage # of cars
T~m/Finish Pine/Average Ic4mdi~unAveralze Disposal OropStait Deck 12X1~ A~ched
Bath Root Vinyl/Average COOLING DishwIsher i Scuffie Porch Detached 2
Ba~w,i.,:ot norg[s/Avg c,.tral No ~../"ood [] ,co. F..c. []
Deem Pnl-P t~e/kvR O~r None ~c~v,vav~ ~ata~l eoo~ Caq~,
.~x~dllton Washer/On/er fin shed F-] )~ewsy 4 Of f St
AddlttoneltaMur~e(*pocia/snergyeffictanti~me, elc.): Additional features in~.lude rear 12x1~; foot deck. Freestanding
shoes have been eheoked for information only and are not included in the appraised value.
CondRton of the iml~rov~mecta, d~prectattoo (physical, lunctionai, and external), repoirs needed, quality ot con'ttuction, remodetin§/addittons, etc.: S~a
Attached Addendum.
~dverse environmental conditions (such Is. but not limited to. hazardous wastes, toxic substances, etc.) present in the improvements, on the sits. or in the
immediate vicinity of the subject property: ~ee Attached Addendua.
Fre~dm Mae F~I~ ?0 ~ PAGE 1 OF 2 Fannm blab Form 1004
Valuation Section UNIFORM RESIDENTIAL APPRAISAL REPORT Fil, .o.
ESTIMATED SITE VALUE ' $ 2~,000 Comments on Cost Approach (such as. source ot cost estimate.
ESTIMATED REPRODUCTION COST-NEW OF IMPROVEMENTS: site value, square toot calculation and for HUD. VA and FmHA. the
0welling 1 ,0~6 Sq. Ft. · $ ~2.00 = S 5~1.912 estimatad remaining economic lita of the property): __ _
Sq. Ft · $__ · . Cost figures have been obtained through
Deck - 2,~00 the Marshall Swift Cost Guide as well as
aamge/Car~, 400 Sq. Ft. · $ 20.00 = 8,000 local sources. The subject suffers from
Total Estimated Cost New I $ 6~, 412 I some external depreciat ion due to its
Less Physical Functional External [oration on Bass Lake Road. This results ~
Depreciation 31% 0% 7% ' $ 24,~00 lan estimated $4,~00 loss in value.
DepreciatedValueollmprovernents . -$ 40,9121 .. See attached sketch for dimensions.
"As-ia"ValueofSitalmpmvementa. $ 1,0001 - ---- Z ~ ~
INDICATED VALUE BY COST APPROACH.. - $ 66,~1001 . Estimated rems inini~ life 40 years.
ITEM I SUBJECT COMPARABLE NO. 1 COMPARABLE NO. 2 COMPARABLE NO. 3
7609 Bass Lake Road 6809 Dudley Avenue 59~2 Jersey Avenue 5937 Hampshire Ave
Address NeW HO e Crystal Crystal Crystal
PmximitytoSubiect Blocks Northeast 8 Blocks Northeast 8 Blocks Northeast
Price/Gross Ur. A~ 0.00 ~ 5 60.39 ~ $ 63. ~9 ~ : S 71. ~3 ~
Data ama/or ~S 38 Days-Cry Clsg Ht.S 19 Days-Cry Clsg HL$ 20 Days-Cry Clsg
VedficationSources Inspection Rec/Clsd 5-31-95 Ret/Clad 3-31-95 gee/Clad 11-30-9~
VAL!~ADJ~I~. DESCRIPTION DESCRIPTION I .(-)$~t,~,t DESCRIPTION [ .{-)$~tr~m DESCRIPTION I
Sales or Financing !i VA FI-LA, F]'LR
Concessions ii 2 Points 0 Points '. 0 Points
Location BUSy Street Sup Nghbrhd : -3.500 Suo N;hbrhd : -3.500 SMD N~hbrhd ! -3.500
~-,e Sirml. Fee Fee : Fee : ,'ce
site 75x202 68x138 : +2,000 60x13[i : +2,000 60x133 : +2,000
view ADts/Resid. Residential ! -2,000 Residential 'i -2,000 Residential : -2,000
Desiqn ,,nd Appeal Rambler Rambler Rambler Rambler
oueityof~ AvR/Hasonite AvA/Hasonite ', AVl~/Hasonite : AvR/Masonite :
Condition Ave?al~e, Ave?aK? Good -1,000 Good -1,000
Above Grade T~a~ i Bdm,; Baths Total: Bdm,; Bath, : Total: Bdrm~ '~ Bath,.: Total: ~rm,: Bat,~
RoomCount 5 ~ 3 i 2 6 ! 3 i 1: +1,000 ~ } 2 : 1: +3,000 6 [ 3 ! 1 +1,000
Gms0Uvi,~Ar~e 1,056Sq. Ft. 1,092Sq, Ft. i 1,071S%Fi- i 1,008Sq. Ft. i
RoomoB, mw~rade Crawl Space Crawl Space Crawl Space I 15[12 Bsmt : -1,000
Functional Utility Average Average Average Averal~e
Heatino,/Coolinfl GFWA/None GFWA/None GF~A/Central : -1 ,~00 CF!dA/Central -1 ,~00
~r~mcim~ram~ None ~one None :, None
Garaqe/Cerport 2 Car Detach Car Attach +1,000 Car Attach i +1,000 Car Attach +1,000
Porch. Pa~o, Deck,Deek-12x15 None +500 Deck : Porch -2,000
Fim,ta¢o(s),eto. No Fireplace No FireDlaoe No Fireplace i No Fireplace
· Fa,co, ~t, etc. None None None [one
I::~:.~:~ None None Whirlpool Tub: -1,000 [one
~flb on ~1 ~d~ (~ ~ ~ p~dy'l oompefibili~ to fha neighborhood, etc. ): ~ Attaohed A(:k:lenchJm.
ITEM I SUBJECT ~ COMPARABLE NO. 1 I COMPARABLE NO. 2 COMPARABLE NO. 3
[
saero~lm~sme NO Reoord o Record No Record No Record
A~yeie o~ mM c~ i~semmlt o{ ~. oplion, or liF~lg o~ ~m ~ct pn~dY and ~ms of ~ P~r ~s of ~ ~ ~eo ~n ~ ~r of ~ ~ °t ~Pmi~l:
There is no record of the subject or eom_parables beinl~ sold over the past 12 months other than
the _~p~es mentioned above.
INDICATED VALUE BY SALES COMPMIi$O# APPROAOI ............................................ $ 6~, 00U
~all.-D¥~_L~¥~N~glO~_L'~_ (if ~.%.!icL~te) Estimatad Mad(etRent$ N/A/Mo. xGmssP~tMLdliplier N/A · $ N/A
"rldllpprai'~llil~de IXl 'Alia' U lutaiectMIhlflpeJl1. Ntara~"~oue, iAppecfiOAlOrOoAdifiOe,slisMdlNIk[P# ~skJb~jecttOcompMtim~perptaneaAdspeClflCa'd~ns'
Co~i#o~dAppm~ The sub.iect has been appraised "As Is". This is considered a sulmary appraisal
Final Reconciliati~A Coat Approach $66,900 ~ales Comparison Analysis $65.000. Income Approach ~as not
reliable beoause of' limited market rental data of sinE[e family homes. The Sales Comparison
to be the most reliable indicator of value.
The pufpo~ of thie appraisal ta to ealimate the mad(et value o! the reel property that is the subject of this mpod. baaed oA lhe ~ove conditions aaa the cerliflc~ork conlinge~
mad limitlA~J cm~l(~e~ and ~,d~t vaue deinition t~t mmtad i~ II~ a#ached Fmtdta Mac Form 439/FaArie IMae Form 10048 (Revispp 6-93 ).
~E)£s11MATETNEMAR~-T~ALuE~A~DEF~N~D~THERF-N-Pe~P~RTY114AT~11~J~JE~?~x~TmsREP~RT~As~Ju~y 6, 1995
(WHICH IS THE DATE OF ~SPEC, TIO# ANO THE EFFECTIVE DAI~ O~ TllS REPORT) TO ~ S 6~ ~ 000
~ Inspect Property
I~me Ron* ' ' d Nome
Data Rppod Si§nad July 6. 1995 Date Report Signed
State c.~ificatio. # CRRPA State Mrt State Cedifination t State
Or Stats License # #4000727 State ~ Or State License # State
BJORKLUND, CARUF£L. LACHE[~V~AYER, TNt.
UNIFORM RESIDENTIAl. APPRAISAL REPORT F,e,o. ~-0686-A
)TEM ) SUBJECT COMPARABLE NO. 4 ~... COMPARABLE NO. 5 COMPARABLE NO. 6
7609 Bass Lake Road 5361 Pennsylvania
0~source ~S 61 DaTs-Ct7
ve~ficationSourceInspection Reo/Clsd 2-1
V~~ 0~CRIPTION D~CRIPTION [ .(-)$~m~t OESC~PT~ON [ .{-)~t DESCRIPTION
Location BUS~ Street Sup Nghbrhd ~ -3,000
~ee tee
site 75x202 )8x124 : +2,000
view Apts/Res id. Park ; -3,000 ;
Ramble~ ~amb[e~
Avg/~sonite ~vK/~sonite ~
conmtio. Ave~aKe, Fa i~ : +2,000
~omCoua 5 ~ 3 ~ 2 5 [ 3 [ 1{ +2,000 ;
1,056S%Ft 920S~.R. ~ +2,500 Sq. Ft. : Sq. Ft
Crawl S~oe :rawl S~oe : ;
Ave~aEe ~ve~a~e
G~A/None ;~A/Central : -1,500
None None ; .;
2 ~r Detach ~r Detach ~ +1,500 :
~rch. Paae, ~ck. Deok-lZx15 ~one : +500
No Firep~oe No Firep~ce :
None ~one
F~tures None None " :
:
Com~nts on Sales Com~d,~ (including ~ mubieM pm~'a comaatibili~ to the neighbo~ood, etc. ):
IT~ SU~CT C~P~BLE ~. 4 COMP~BLE ~. S COMPA~BLE
~te. P~ and ~a
~er~mr~ ~o Reoord No R~ord
· ~ EDA
REQUF.~T FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
~,~,~24-95
Kirk McDonald i~ I Item No.
By: Management Assistant By:/r// 6
RESOLUTION AUTHORIZING PURCHASE OF 5559 SUMTER AVENUE NORTH
(IMPROVEMENT PROJECT NO. 541)
At the May 8th EDA meeting, the EDA authorized staff to obtain an appraisal on the property at 5559
Sumter Avenue in conjunction with the Bass Lake Road Housing Redevelopment Project (Improvement
Project No. 541). The property owner had previously contacted the City and indicated an interest in
selling their property to the City. At the June 12th EDA meeting, the EDA accepted the appraisal and'
authorized staff to negotiate with the owners. The appraisal listed a Fair Market Value estimate on the
property of $62,000. Staff met with the property owners on June 28th and on July 5th submitted a
Purchase Agreement to the owners in the amount of $62,000. The Purchase Agreement also states that
the City will assume payment for the pending $2,470 street assessment.
The property owners (heirs to the estate) have executed the Purchase Agreement and the City Attorney
has prepared the enclosed resolution approving the purchase of the property. No public hearing is
necessary. Staff have informed the heirs that it is the City's intent to demolish the structure. This
property lies within the redevelopment area as expanded by the Master Modification to the
Redevelopment Plans and Tax Increment Financing Plans and the purchase will be funded with TIF
funds.
Staff recommends approval of the resolution.
Review: Administration: Finance:
RFA-O01 ~
EDA RESOLUTION NO. 95-
R/SOLUTION AUTHORIZING PURCHASE OF
5559 SUMTER AVENUE NORTH
WHFR~AS, the owners of property known as 5559 Sumter Avenue
North~ ]~gal]y described as (the Proper'ly):
Tract ~, RLS 97, Section 5, Township 118, Range 21,
Hennepin County, Minnesota,
q~v~ offered to sell the Property to the Economic Development
Authority in and for thc City of New Hope (EDA)~ and
~.BEA$, the Property is located within the area subject to
the Redevelopment Plans as amended and approved by the EDA and the
City of New Hope, and
WHEREAS, the Property is within a redeve3opment are: that
presently contains blight or b3ightin9 'r~lors or which because o~
age, obsolescence, market conditions and other factors is
susceptible to b3ighting conditions, and
~HEREAS, the fair market value Of the Property h~s been
estimated at $62,000.00 by an independent fee appraiser, and
~EEEAS, the proposed Minnesota $~andard Residential Purchase
Agreement attached hereto as Exhibit A involves a purchas~ price of
the Property for $62,000.00 with other terms and conditions as set
for'th in ~e'id Pur"ch~e A~r'eement, and
WHE~A~, purchase of the Property is authorized by Minn. Stat.
~5~.10!, Subd. 2, and
WHEREAS, it w~uld be in the best interest of the City and its
pecple, and will further the City'a general plan of economic
d~v~lopmenl to purchase the Property.
NOW, THEREFORE, BE IT RESOLVED by the Economlc Development
Authority in and for the City of New Hooe as follows:
1, That the above recit~l~ are irl~or'por~ted by reference.
2. Tha, th~ Mi. nnesota Standard Residential Purchase
Agreement attached hereto as Exhibit A is hereby
Approved.
~-~ 3. Thaf the appropriate ~DA staff and officer~ are
authorized and dir'ecLed to take whatever steps necessary
~o complete the purchase of the Property as ~et forth in
attached Exhibit A.
Adopted by the Economic Development Autho~'i'L¥ in and for the
City of New Hope this day ot July, 1995,
Edw, J. Er~ckson, Chairman
DAniel d. Donahue, Execu'tive D~rectoF
WED 12:20 P, 02/08
CORRICK ~ SONDRALL. P.A.
· '~.~ ~. ~C~L~ ATTOP. r~'i'5 AT LAw
: ~'r,~ ~ ~, ~.:~,~ Ea~ourg~ Executive Office PI~
....... ; ::' ..... 8525 E~nbrook Crossing
Suite i903
Brvok1~ P~ M~ncso~ 5~3
Yg~NE (61~
F~ (~2) ~
July lg, 19g~
Daniel J. Oonahue
Executive Director
New HOpe EDA
4401Xylon Avenue North
Now Hope, MN 55428
Purchase of 5559 Sumter Avenue North
Our File No: 99.29431
Dear Qan'
We have re~eive~ a Purchase AgreemenI from the owners of 5559
Sumter Avenue North. The enclosed R~so]ution approves the purchase
of the property. No public hearins is needed.
Because this property fails within the redevelopment areas as
expanded by the Master Modification to the Redevelopment P~ans and
Tax Increment Finar~cing P3ans, tb~s Resolution shou]d be passed
after the C~ty Council has adopted the Master Modifications.
Please contact me if you have any questions regardin~ this.
Sincere]y,
Mart~n P. Malecha
$3w
K~rk McDonald (w/en~)
va]erie Leone (w/enc)
Staven A. Sondrall, Esq.
~ ~~~ ~ Sumter Avenue North
-
, o ~ew Hope
JUL-19-95 NED 12:21 P, 05/08
MINNESOTA. STANDARD RESIDENTIAL PURCHASE AGREEMENT
BEFORE YOU USE OR SfGN %HIS CONTRAC~ YOU SHOUI D CONSULT WITH AN ATTORN~Y TO DETERMINE T~AT
1. PARTI~. ThJl PgrchaSm A~r~m~n[ IS made on .. ~ ~ la ~ . Dy and ~lWeen
' . BUYER
c~5~0sa~s. ~u~lt.~n tras~ compactors, built.in ov~ ~ cooking stoves, hob-fans, inzerC0~S, installe~ car~:in~, wore b~n~Rm.
eno also the following pro~rty ~3 ] ~ mH~].] . ~ ~].m.r~ mn r~ ~ht~ to ~rso~Z oro~rtv_~r..~
5. PRICE ANO TE~M~. T~e price for me real an~ per.mai property included in ~is ~le Is ~ ~~ ~~
~u~ipt ~f wnIcm Is needy acKn0wl~ (~0 ~ Ge~site~ t~e next business day a~er acceptance in ~st ac~unt of ;lstlhg D~r, u~e~ othe~ise
specified in wri~ir'~9} a,,u ~ ~ ~ ~. cash on , the DAT~ 0F CLOSING,
6. DEED/MARK~AOLE ~E. U~n pe~o,'mat~ca by ~uyer, ~l~r ~h~ll execute and aeuver a Warran~
P;E,,:~L bS ~ATk fAXES AND SPECIAL A.~:E.~.~MClfl'.~,, Real efta~ tms due a~ ~yable i~ and for the year of ¢loolng shall
z~ :"ar': ':: ~ ~m~;~';emen~s that have be~~er governmen~l assessing authoritieS. ' '
~~~ a s~c~at a~e~ment becomes pending a~er the date of this Agreement eno befo~ the ~ate of closing Buyer
~ ' ' ' ~uyer may rescind thi~
SELLER'S BOUNDARY UNE, ACCESS. RE~TRICTION~ AND LIEN WARRA~IES. Seller warrantR that blJlldinOs. If any. are enz~rely
.,'.~l;~:]~ns of any restrJclions relatin~ t0 me use or improvement of the prope~y, the~e warranties shall survive the defi~ry of the ¢ee~ or 6omra~ for
CONDITION O~ ~ROP~ Seller war~an~ that all appliance~l~i~Se~ amd
~.'~ Co~=e '¢ (~O;). 8e,~r 5haJt remove ~11 ~Dris an~ all ~r~nal pro~rty not included In this sale from the pro~y before possession
=.cma, r=s ~ct rece~ve~ any not,ce rrna ~y governmental aut~ori~ as to the existence of any dutch elm di~ase, oa~ wilt or other disease of
;, _ ;,~E;.,, ; £: 2Z P, 06/08
·' :~':F,O;¢A ~4Tr, NDARD RESIDENTIAL PURCHAE~E AGREEMENT/PAGE 2
NOTICES, Seller ,"k3s ~ot received any ~otJce fto~ a~y governmental ~uthoriw as tQ violation of any law ordinance of re~uta-
ten (10/ bus,ness clays or on the sch~uJ~ closing date, wh~nh~ver i~ I~t~c
ecr~est mo~ey shall be refunded to
-:~ke~ab~e due to Selier~ failure ~0 pr~d in ¢o00 faith, Cuyer may ~eek, as ~rmitted ~y law, any One or more of ~he following:
ce limited [o ~e cos~ of curing obj~tions to title, and ~ns~uenfier damages ere exclude); Or.
(D~ U'~der:~h.~ prOoe~dings tO correct the objections to title;
ar'<; a~ e~¢r~.5 roomer paid hereunder shell ~ refunded to Buyer;
OFTRE ESSENCE FOR ALL PRO~51ON~
t --'.;.~ tG. IqOTIC~E~. All notices r~u[rsc] he.in ~ll ~ ~m wr~im~ ~n~ ~oli~d ~r~nal~ o~ ~le~ ~ the addre~ ge ~hown at Paga~roph 1.. a~ ~
SELLER'S eELI..ER'~ BUYER'S BUYER'S
INITIALS ,INITIALS , INITIAL~. INITIALS
(0a~) (P~tel ({~&te) {Date)
· %f'18. SUBDIVISION OF LAND. If this aais constitutes or ra~!uiraa a su~ivision of land ~n~ ~ Seller. Seller shall pay all su~ivlsion ax~n~es and
.,r obtain ail necessa~ governmental ~provals. ~[ler warrants that the legal de~ription of the real pro~rty to be ~nveyed ~as been or will
' '; ~pprovea for re~rding ~s of the date of cl~ing.
1 g. MINNESOTA ~W. This contram shill ~ g~rn~ ~ the laws of the State of Mtnn~ta,
;:% ~,gOE. t'4OA, :\tla¢bed are (number)_..,~ addenda which ere made a part of this Agreement.
M~nnesota ~3w permits .cense~ r~al es-ta~e ~ro~ers ana Sales agents to pre.re
Closing snail ~ al lbo celts of;
Name AdOr~
~;,JL-!9-95 ~ED ~2:23 ?,07/08
ADDENDUM TO PURCHASE ARREEMENT
FOR 5559 SUMTER AVENUE NORTH
I. Seller's Reclamation Right~. Buyer acknowledges and agrees
~eller may reclaim the following personal property prior to
Buyer's demolition of the improvements on the property:
garage door, water heater, furnace, washer and dryer.
Seller's reclamation rights shall be subjec[ tO the following
t~ms ~nd conditions:
Seller shall not ref~uve the referenced personal property
until Seller receives notice from the ~uyer to do ¢o.
Buyer agrees ~t w~l] g~ve Seller at least 48 hours
no~oe that sa~d property ~a¥ be removed. Verba~ notice
sha~l be suffi¢ient for this purpose.
b, In the event 8eljer fails to remove the property within
48 hours after receiving notice from Buyer, Buyer may
dispose of the property as it ~ees fit. In aa~d event,
~e~ler~s reclamation rights to the property shall be
deemed waived and Seller agrees it s~at] have no claim to
the property or c~a~m to money damages against ~uyer for
d~spo~al of the property.
c. seller agrees to indemnify and hold harm~es~ Buyer for
all cla4ms for damaees, includ4ng costs ~nd reasonable
attorney's fee~, for any 1n~urles suffered by any
~ndividua]s acting for or on behalf of Seller te recl&~m
the referenced property regardless of whether s~id claim
or ~nj~ry arises from the negligent ~c[ or omission of
Buyer or any employee, representative, ~gent or
independent contractor of Buyer.
seller further agrees this reclamation right is limited
to the p~rsonal property listed in paragraph 1 above.
Well Disclosure Statement. Seller hereby informs Buyer t~t
a well is located on the property legally described ~n
paragraph 2 of the purchase agreement. Seller further
certifies the following information regarding said well is
accurate and complete to the best of his knowledge:
a. Le~a~ description of property: Tract B~ RL8 97~ S 5~ T
118, R 21, Hennepln County, Minnesota.
b. Seller certif4es that the following well is located on
the above described real properZy.
MN Un4que Well No:
Well Depth:
-I9-95 ~ED t2'24 P, 08/08
','ear of Congtruftion:
We] 1 Type: ......
~n Use:
Not 5 ~ Use:
c, Map Of Wel~ Locution (see attached
d. Certifioation by Seller~ cer'.tlry t~at t~nform~tion
provided is ~ccurate an~ omfete~ t~'~S~¢ my
knowledge, Signed by: ~
l-es ~al ~e~te- -
Real Es[e~e A~en67 D~s_C_~_osure~ee additional terms provision
o¢ paragraph 20 of [he Purchase Agreement,
Ri~ht~ of Tenant. Seller sgrees that this sale shall not be
subject to any tenant rights in [he property, Seller agrees
that all tenant rights w~ll be terminated and the property
witl be vacated om or before the d~te of closing. Buyer
acknowledges and e~reee that Buyer' wilt responsible for any
tenant c'~aim ~or relocation assistance pursuant to the Uniform
Relocation ~stance and Real Property Acquisition Policies
Act end aBrees to 4ndemnlfy and hold h~rmless Seller For ~ny
claims made by tenants pursuant to or under said Act,
Dated: ~ /~ , 1
· ~' CORRICK ~[ SONDRALL, P.A.
5TEYEN A. SONDRALL ATTORNEYS AT LAW ~=AL ~T~TS
MICHAEL R. LAFLEUR
MARTIN P. MALECHA Edinburgh Executive Office Plaza LAVO.NE 5. KESKE
WILLIAM C. STRAIT 8525 Edinbrook Crossing SHARO.'O. DERaY
Suite #203
Brooklyn Park, Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 425-5867
July 5, 1995
Mr. Chad Henderson
Attorney at Law
6200 Shingle Creek Parkway, Suite 385
Brooklyn Center, MN 55430
RE: Estate of Frances Louise La]iberte
Our File No: 99.29431
Dear Mr. Henderson-
I am forwarding to you the enclosed Purchase Agreement and Addendum
at the request of Jules La]iberte, the Personal Representative for
the Estate of Frances Louise La]iberte. The Economic Development
Authority in and for the City of New Hope is interested in
acquiring the property at 5559 Sumter Avenue North in the City of
New Hope. It is our understanding that the decedent, Frances
Louise Laliberte, was the fee owner of said property.
In compliance with the Federal Uniform Relocation Assistance and
Rea] Property Acquisition Policies Act, please consider this letter
our summary statement of the basis for our offer required by
Section 24.102 of the Rules and Regulations to implement said Act
found at 49 CFR Subtitle A (10-1-94 Edition). Basically, it is the
Economic Development Authority's position that $62,000 represents
just compensation for the property. This is based on an appraisal
prepared by Ron Lachenmayer of BCL Appraisals, Inc., a copy of
which is enclosed for your review.
Naturally, this offer for the purchase of 5559 Sumter Avenue North
is for a fee simple interest in the property subject to no tenant
interest or otherwise. This offer includes acquisition of all
buildings and improvements to the property with the exception of
the reclamation rights of seller identified in the Addendum to
Purchase Agreement.
Mr. Chad Henderson
July 6, 1995
Page 2
At the June 28th meeting with the decedent's heirs we discussed our
appraisal for $62,000. The siding issue (steel v. aluminum) does
not affect the appraised value according to our building official
and the appraiser. Also, the EDA will assume payment for the
pending $2,470 street assessment. We will also be incurring an
expense to cap and seal the we]l on the property. As a result, we
believe the $62,000 offer represents fair compensation for the
property.
The EDA will also pay for all incidental expenses to transfer title
to the property as required by Section 24.106 of the Rules' and
Regulations including recording fees, abstract extension costs and
the St ate Deed Tax.
We also intend to have the tenants of the property contacted by a
relocation consulting firm to determine if they are entitled to any
payment under the Act resulting from their displacement from the
property by the EDA's acquisition of the property.
The EDA would like to consider this Purchase Agreement at its July
24, 1995 meeting. Therefore, a response to this Purchase Agreement
by your client by July 19, 1995 would be much appreciated.
Please contact me if you have any questions.
Very truly yours,
ORIGINAL $1GNED
ily 8TEVEN A.
Steven A. Sondrall
New Hope City Attorney
and EDA Attorney
slt2
Enclosures
cc: Daniel J. Donahue, City Manager
Kirk McDonald, Management Ass~ THIscOp~-~~
Jules Laliber'te
Mi ke Meyer
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
S 7%x24-95
arah Bellefuil ;~ Item No.
By: Administrative Analyst By: // 7
/
MOTION APPROVING QUOTE SUBMITTF~D BY EVERGREEN LAND SERVICES CO., FOR
RELOCATION SERVICES FOR THE BASS [LAKE ROAD REDEVELOPMENT PROJECT
At the February 13th New Hope City Council meeting, staff discussed with the Council the potential
for future housing redevelopment in the Bass Lake Road Extension area located between St. Raphael's
Catholic Church and Sumter Avenue and between 55th Avenue North and Bass Lake Road.
On May 8th Council directed staff to pursue appraisals for two properties including 5559 Sumter
Avenue North and 7621 Bass Lake Road. During the June 12th EDA meeting, staff was authorized to
obtain appraisals for two additional properties located at 7609 Bass Lake Road and 5520 Sumter Avenue
North. Also during this meeting, the EDA authorized staff to proceed to negotiate with the property
owners at 5559 Sumter Avenue North and 7621 Bass Lake Road for purchase of their property.
During initial discussions with the owners of 5559 Sumter Avenue North and 7621 Bass Lake Road,
staff felt that a relocation specialist was necessary to help in the purchase of the properties and the City
Attorney confirmed this. This is because anytime a public agency wants to purchase private property
they must follow guideline outlined in the Uniform Relocation Act.
The City received bids for relocation services from three businesses:
Conworth, Inc.
$65/hour not to exceed $1,625 per home.
Evergreen Land Services Co.
$55/hour. Proposal stated that relocation work usually takes between 20 to 25 hours per home.
Professional Redevelopment Resources, Inc.
$65/hour. Proposal also listed a fixed price of $1,050 per homeowner.
Based on the fact that Evergreen Land Services has the lowest hourly rate, a comparable fixed rate, and
was highly recommended by Brooklyn Center, Golden Valley and Hennepin County, staff recommends
that the EDA select Evergreen Land Services for relocation services in the Bass Lake Road housing
redevelopment area.
Staff recommends approval of a motion awarding the work to Evergreen Land Services Co.
-//- ~_ ~t ---
Review: Administration: Finance:
RFA-O01 ~
EVERGREEN LAND SERVICES CO.
6200 SHINGLE CREEK PARKWAY, b,jI. u.. 415 · BROOKL',/N CENTER. MN 55.430
PH. 612-566-,036. FAX 612-566-68tl
July 5, 1995
Ms. Sarah Bellefuil
Community Development Specialist
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
SUBJECT: Your Request for Qualifications/Fee Schedule for Relocation Consulting Services
New Hope Neighborhood Redevelopment Project
Dear Ms. Bellefuil:
Thank you for your phone call this morning and the information you faxed regarding relocation issues
for your Neighborhood Redevelopment Project. I would welcome the opportunity to work with you
and the other City staff involved in this Project.
This letter will provide you with information on my background and experience, information on
Evergreen Land Services Company and its philosophy, a list of some of the agencies with whom I
have personally worked and who know me professionally, and our fee schedule for relocation
consulting services. Please feel flee to contact any or all of the referrals as you wish.
Regarding my background, I have worked directly in the relocation field for over ten years, and
previously worked for four years in the real estate appraisal field. My experience is with a local
public agency as well as with two private consulting firms. I have supervised public project relocation
activities and relocation staff counselors, and have myself provided relocation counseling directly to
hundreds of residential and business displacees. Enclosed with this letter is my resume for your
review.
Evergreen Land Services Company was founded in 1972 and is the oldest company in Minnesota
specializing in land acquisition for public redevelopment and right of way projects. The firm has long
had an interest in being able to provide existing and potential clients with relocation services along
with its other specialties of title search, appraisal, review appraisal, negotiation, project supervision,
and full "mm-key" services. Therefore, early in 1995, I was hired as Evergreen's Relocation
Specialist and Director of its newly established relocation division.
It is our belief that success is derived from good communication and a positive working relationship
with our clients and with the owners and occupants of the project area. Evergreen has a staff of
employees who are qualified professionals with diverse experience in acquisition and relocation
assistance activities for public projects. This experience insures the quality and cost effective
implementation of the services provided by our consultants. Evergreen's goals are Agency
satisfaction with our services, meeting the project's timetable and budgetary needs as best as is
possible, and fair and respectful treatment of owners and occupants of a project area.
Ms. Sarah Bellefuil
July 5, 1995
Page 2
Following are some agencies with whom I have worked:
Tom Bublitz, Community Development Specialist
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
(612) 569-3433
Diane Spector, Director of Public Services
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
(612) 569-3331
Mark Grimes, Director of Planning & Development
City of Golden Valley
7800 Golden Valley Road
Golden Valley, MN 55427
(612) 593-8097
Gary Criter, Landscape Architect II
Minneapolis Park and Recreation Board
400 South 4th Street
Minneapolis, MN 55415
(612) 661-4820
John Lane, Right of Way Engineer
City of Minnetonka
14600 Minnetonka Blvd.
Minnetonka, MN 55345
(612) 939-8200
Also for your information, here are two professional references:
John Connors, Realty Specialist
U. S. Fish & Wildlife Service
Fort Snelling, MN 55111
(612) 725-3564
Barb Hayden, Administrative Manager
Hennepin County Planning & Development
10709 Wayzata Boulevard
Minnetonka, MN 55305
(612) 541-7083
Ms. Sarah Bellefuil
July 5, 1995
Page 3
Evergreen charges $55.00 per hour plus mileage for relocation assistance consulting services.
Generally, relocation services for a residential occupant, either homeowner or tenant, requires
somewhere in the area of 20 to 25 hours. As we discussed on the phone, if several properties are
acquired at the same time, the relocation services can be provided in a more efficient fashion. The
services required by the relocation regulations, and which we offer to you for this project, are
summarized as follows:
1. Initial meeting with City staff to discuss project coordination and procedures.
2. Meetings with each owner/occupant to review and explain relocation benefits,
documentation requirements, and the process applicable to each of their situations.
3. Researching for comparable replacement housing/referrals for the residents. Preparing
the comparable analysis which sets maximum payment limits for replacement housing
payments.
4. Preparing Notices of Eligibility for Relocation Assistance and 90-day Notices to
Vacate, per the relocation regulations, for City staff review and signature.
5. Assisting the occupants in identifying and documenting eligible, reimbursable relocation
costs and confirming the submitted costs are reasonable and necessary per the regulations.
6. Preparing claims for relocation payment and making recommendations to the City of New
Hope regarding the eligibility of relocation benefits requested by the occupants.
7. Throughout the project, addressing questions and concerns of the occupants, and advising
the occupants of their fights and obligations in the relocation process.
8. Throughout the project, reviewing the project/relocation status and reviewing any
questions and concerns of the City staff
Again, I appreciate your request for information on our relocation consulting services. Please don't
hesitate to call if you have any questions or require anything further.
Sincerely,
Sandra G. Luegge fi'd/.
Relocation Specialist
SGL:bz
QUALIFICATIONS
SANDRA G. LUEGGE
Evergreen Land Services Company
6200 Shingle Creek Parkway, Suite 415
Minneapolis, MN 55430
PROJECT ASSIGNMENTS: Residential and Business Relocation Counseling,
Technical, Advisor5', and Documentation Services
EDUCATION: B.S. Degree, 1980, Mankato State University, Mankato, MN. Cum
Laude Honors. Open Studies Major concentrating in Business/Real
Estate. Training/courses sponsored by the International Right of Way
Association, Department of Housing & Urban Development, and
American Institute of Real Estate Appraisers.
RELATED EXPERIENCE: Director of Relocation, Evergreen Land Services
Company, Minneapolis, Minnesota, 12/94 - present.
Projects Manager and Relocation Consultant, Conworth,
Inc., Minneapolis, Minnesota 1989 - 1994.
Relocation/Acquisition Consultant and Director of the
Midwest Office, Von Klug & Associates Inc.,
Minneapolis, Minnesota 1985 - 1989.
Real Estate Appraiser and Branch Office Manager,
Robinson Appraisal Company, Inc., Mankato and
LeSueur, Minnesota 1980 - 1985.
Redevelopment Specialist, City of Mankato, Minnesota
1977 - 1980.
COMMENTS: For Conworth and Von Klug & Associates, both independent consulting
firms, worked directly with over a hundred business and residential displacees for various
public agency clients in their redevelopment and right-of-way acquisition projects funded
through local tax increment financing, HUD, MnDOT/FHWA. Trained and supervised
relocation staff counselors and directed relocation project activities.
For the City of Mankato, administered a variety of acquisition and relocation projects
funded through HUD/CDBG and local tax increment financing, all under the guidelines of
the Uniform Relocation Act. Negotiated permanent and temporary easements for Corps of
Engineers flood control projects in the community. Monitored related construction projects
for EEO/Affirmative Action requirements.
Currently a member of and region representative to the International Relocation Assistance
Committee of the IRWA, active in the Minnesota Relocation Committee, IRWA Chapter 20
Treasurer and Relocation Assistance Committee Chairperson.
EVERGREEN L ,ND SERVICES CO.
6200 SHINGLE '~ ~
,,.,RE~K PARKWAY. SUITE 415 ·
PH 612~566-1036 · F~,X 612-566-68'~?
July 12, 1995
Ms. Sarah Bellefuil
Community Development Specialist
City of New Hope
4401 Xylon Avenue North
New Hope, MN' 55428
SUBJECT: Relocation Consulting Services
New Hope Neighborhood Redevelopment Project
Dear Ms. Bellefuil:
In response to your phone call of this morning, I am submitting a "not-to-exceed" bid of $1,050.00
per homeowner/occupant plus mileage for Evergreen Land Services Company to provide relocation
consulting services for your Neighborhood Redevelopment Project. Our billings are prepared and
mailed on a twice-monthly basis for the time spent on a project, and our hourly billing rate for
relocation services is $55.00 per hour.
I hope this information covers what you need to approve Evergreen's proposal for services. If you or
other City staff have any questions, please don't hesitate to call me at 566-1036. Thank you for your
consideration.
Sincerely,
Relocation Specialist/Director
SGL:bz
CONWORTH, INC.
4725 Excelsior Blvd.
Suite 200
Minneapolis, MN 55416
(612) 929-0044
FAX (612) 929-0568
June 29, 1995
Ms. Sara Bellifuil
City of New Hope
4401 Xylon Ave. N.
New Hope, MN 55428
Subject: Proposal for Relocation Consulting Services
City of New Hope
Dear Ms. Bellifuil:
Thank you for the opportunity to submit a proposal to provide
relocation assistance to the City of New Hope. This letter is our
response to your request for proposal, and will also provide you
with some information on our firm.
Conworth, Inc., a woman-owned enterprise, was formed in 1989 by
persons who had worked in the acquisition/relocation field for
many years. The firm's staff consists of four consultants with
over 35 years of combined experience in residential and business
relocation and related real estate activities. Our services
concentrate on the requirements of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act and
Minnesota Statute 117.52.
Conworth's relocation specialists pride themselves on their
ability to listen and communicate, thus enabling both the
acquiring agency and the displaced occupants to go through a
potentially difficult time with better understanding and
cooperation.
A reference list is enclosed with this letter, for your review.
Please feel free to contact any of these agencies, as you may
wish, for references.
Conworth's standard hourly charge for our relocation specialists
is $65.00, and we bill on the basis of quarter-hours. This
hourly fee includes all support services such as secretarial,
phone charges, and mileage.
Redevelopment Acquisition/Relocation,
Ms. Sara Bellifuil
June 29, 1995
Page 2
You have indicated that there are potentially 12 homes in the
project area. However, we will format this bid with a not-to-
exceed figure for each home.
We estimate that our total fee to provide the above-mentioned
relocation assistance would be an amount not-to-exceed $1,625.00
per home. However, it is Conworth's policy to bill our clients
for only the time actually required to provide the necessary
relocation assistance services. If it takes less time than what
is calculated in the above "not-to-exceed" figure, we would bill
the City of New Hope for only that actual cost.
If you have any questions regarding our services or this
proposal, please don't hesitate to call me. We look forward to
working with you and providing the City of New Hope with
relocation consulting services.
Sincerely,
oK~ef~~tor
sl
enclosure
c..,J CONWORTH, INC.
Reference List
1. Brooklyn Park HRA
Stacie Kvilvang, Redevelopment Specialist
5200 85th Avenue North
Brooklyn Park, MN 55443
Phone: 493-8089
2. City of Richfield
Bruce Palmborg, HRA Coordinator
6700 Portland Avenue
Richfield, MN 55423
Phone: 861-9700
3. City of New Brighton
Kevin Locke, Director of Community Development
803 5th Avenue N.W.
New Brighton, MN 55112
Phone: 631-8340
4. City of Rochester
Ron Halling, Right of Way Agent
Department of Public Services
1602 4th Street S.E.
Rochester, MN 55904-4718
Phone: (507) 281-6008
CONWORTH, INC.
Professional Redevelopment Resources, Inc.
2300 Central Ave. N.E., Mpls, MN 55418 [TI,.-. ~ ~ _ ~ - ~ll _.
= =-_ Jl li :llll--
Other Offices: Iii IlUl
A. C. Office Building, Arkansas City, KS 67005 -- ---- -1i -- IIIIIII1111 --
Ph: (316) 442-4905
July 5. 1995
Ms. Sarah Bellefuil
Administrative Analvst
City New Hope
4401 Xvlon Avenue North
New Hope. MN 55428-4898
Dear Ms. Bellefuil:
Thank you for your request for a proposal for relocation services for the property, acquisition project you
are undertaking.
As noted in the Statement of Qualifications, we have extensive experience in conducting acquisition and
relocation services. We can perform small projects involving a few parcels and relocations, but can also
efficiently handle large projects involving hundreds of acquisitions and relocations. We believe our
experience and abilities are particularly' important in a project such as youi-s. Acquisition and relocation
work requires specialized experience and thorough knowledge of the Uniform Relocation Assistance and
Real PropertT Acquisition Policies Act, as amended, in order to result in fair and legal relocations with
minimal hardships and complaints. We strive to perform both acquisition and relocation work in ways
that benefit both our clients and the party being displaced. We work to ensure proper and fair relocation
pa.vments are made where no unjustified costs are incurred. These have been developed from many years
of experience and are based on a direct, honest and communicative dealing basis.
We provide these services efficiently, ethically, and professionally. We understand the accountabiliW that
we, as professional service providers, must provide. We are confident we can provide these services to
your satisfaction. We will ensure that your acquisition and relocation work is done in compliance with
state and federal laws and regulations. If selected to perform purchase negotiations, we would ensure that
acquisition prices are reasonable and justifiable.
Please review the attached proposal and let us know if we can provide further assistance. We would be
available to meet with you at your convenience to discuss this project, our qualifications, and to answer
any ~uestions that you may have.
ly,
IK : A. Schnitker ~idem
prop I
PROPOSAL
PROFF__~SIONAL RF_.IYEV~ELOPME_NT RF_..SOURC~, INC.
FOR:
THE CITY' OF NEW HOPE'
July 5, 1995
Professional Redevelopment Resources, Inc.
lil=' '
Ph: (612)789-5151 ..... lla-
Other omces: Ill IIIlli
A. C. Office Building, Arkansas City, KS 67005
Ph: (316) 442-4905
FEE PROPOSAL
A. Residential Relocation Services
1. Per Tenant $ 975.00
2. Per Homeowner $1,050.00
B. Business Claim Services
I. Payment-In-Lieu of Actual Expenses: $1,050.00
2. Actual Cost Claim: $1,105.00'
*Actual claims can be lengthy and it is not possible to establish
a set cost, therefore, we propose these relocations to be a
minimum of 17 hours, however, hours incurred thereafter will
be billed at $65.00 per hour.
C. Acquisition Services
Per single family residential property: $ 500.00
D. Appraisal Services
1. Fee appraisal services: Depends on property
2. Review Appraisal Services
per single family property: $ 250.00:
E. Appeals
If any administrative appeals are filed, fees would be charged at $65/Hour.
(Generally, no appeals are made.)
F. Miscellaneous
1. General Hourly Rate:
$65.00 per hour for consulting services.
2. Miscellaneous Expenses
All hourly or set fees per unit costs include secretarial, copying, mailings,
mileage, and FAX's. Travel time is charged for time one way when hourly fees
are charged. Costs for rental of meeting space will be billed on a cost basis.
FEE PROPOSAL
(Continued)
3. Insurance and Environmental Assessments:
It will be necessary to insure all acquired property as of the time of purchase and
complete necessary environmental assessments. Services relating to these matters
are not included but may be provided if such services are requested.
Note: Minnesota has various laws relating to hazardous waste and demolition
projects.
4. City Input:
It is necessary that the City be involved in the relocation process. This will be
necessary to address difficult claims, payment of claims and other matters.
Professional Redevelopment Resources, Inc.
Ph: (612) 789-5151 o Fax: (612) 788-101 l l[~"'~
OtherOmces: [ I l==m'
A. C. Office Building, Arkansas City, KS 67005
Ph: (316) 442-4905
PROFESSIONAL REDEVELOPMENT RESOURCES, INC.
The owner of Professional Redevelopment Resources, Inc. and Staff have over 60 years of
combined experience in government and real property issues that relate to the Uniform Relocation
Assistance and Real Property Acquisition requirements and real estate law. Our clients,
experience and projects are diverse. We provide a full coverage of services that include project
planning, acquisition, relocation, appraisal, and review appraisal services. We have undertaken
projects involving residential single family to multi-unit properties; commercial; industrial; partial
acquisitions; airports; and right of way projects. Our projects vary in size from single parcel
projects to projects involving hundreds of parcels.
Our clients include the following:
· Small and large cities
· Counties
· Airports
· Departments of Transportation
· School Districts
· Housing and Redevelopment Authorities
· Waste Control Commission
· State Universities
· Economic Development Authorities
Professional Redevelopment Resources, Inc. is thoroughly familiar with the Uniform Relocation
Assistance and Real Property Acquisition Policies Act, real estate laws and practices, property
valuation, and eminent domain procedures.
MEMBER ASSOCIATIONS
A. Economic Development Association of Minnesota (EDAM) - Corporate Member
B. International Right of Way Association (IRWA) - Member
C. National Association of Housing and Redevelopment Officials (NAHRO) - Corporate Member
D. American Planning Association (APA) - Member
2300 Central Ave. N.E., Mpls, MN 55418
Ph: (612) 789-5151 o Fax: (612) 788-1011
Other Offices:
A. C. Office Building, Arkansas City, KS 67005
Ph: (316) 442-4905
GENERAL PROPOSAL FOR
RELOCATION CONSULTING SERVICES
Homeowner Relocation Services
At a minimum, the following services would be necessary for the subject project:
A. Prepare and Send Notices of Relocation Eligibility, and Information Brochures.
B. Conduct comparable search and document findings.
C. Complete required comparable inspections.
D. Issue available comparables.
E. Issue 90-Day Notices.
F. Consult with homeowners regarding:
· Relocation Eligibility
· Housing Replacement Payment Claims
· Mortgage Interest Differential Payment
· Incidental Expenses
· Moving Claims
· Move-Out Dates
· Other Issues as Needed
G. Inspect replacement units.
H. Prepare Moving Claim Forms.
I. Prepare Housing Replacement Payment Claim Forms.
J. Present Executed Claim Forms to City.
K. Doctunent Files As Needed.
L. Comply With URA Requirements
M. Generally Correspond With the City as Necessary.
N. Close Out and Maintain Files, and Make Available for Monitoring as Necessary.
Professional Redevelopment Resources, Inc.
2300 Central Ave. NE., Mpls, MN 55418
Ph:(S12) 789-5151o Fax: (612) 788-1011 '=---- ---- .......
Other Offices:
l:
A. C. Office Building, Arkansas City, KS 67005
Ph: (316) 442-4905
GENERAL PROPOSAL FOR
RELOCATION CONSULTING SERVICES
Residential Tenant Relocation Services
At a minimum, the following services would be necessary for the subject project:
A. Prepare and Send Notices of Relocation Eligibility. and Information Brochures.
El. Conduct comparable search and document findings.
C. Complete required comparable inspections.
D. Issue available comparables.
E. Issue 90-Day Notices.
F. Consult with tenants regarding:
· Income
· Relocation Eligibility
· Temporary. Moves
· Moving Claims
· Rental Assistance Claims
· Other issues as needed.
G. Inspect replacement units.
H. Prepare Moving Claim Forms.
I. Prepare Rental Assistance Claim Forms.
J. Present Executed Claim Forms to City.
K. Document Files As Needed.
L. Comply With URA Requirements
M. Generally correspond with the City as necessary.
N. Close out and maintain files, and make available for monitoring as necessau.
Ph: (612) 789-5151 o Fax: (612) 788-101 l
I-! -III-- -
· .~ mmmu *|z
Other Offices: '~ ~---- ~ :l.
!11-I!111-- 11 l=
A, C. Office Building, Arkansas City, KS 67005
Ph: (316) 442-4905
GENERAL PROPOSAL FOR
RELOCATION CONSULTING SERVICES
Business Relocation Services
At a minimum, the following services would be necessa_D.' for the subject project:
A. Prepare and Send Notices of Relocation Eligibility, and Information Brochures.
B. Conduct Site Survey.
C. Video Tape Site.
D. Interview Tenants.
E Advise Tenants of Relocation Benefit Options.
F. Provide Referral Services as Necessary.
G. Issue 90-Day Notices.
H. Assist Owner(s) in moving the business.
I. Prepare the Appropriate Clam Forms.
J. Present Executed Claim Forms to City,.
K. Document Files as Required by URA.
L. Comply With LIRA Requirements.
M. Generally Correspond With the City as Necessa~,.
N. Close Out and Maintain Files, and Make Available for Monitoring As Necessary.
Professional Redevelopment Resources, Inc. ...
2300 Central Ave. N.E., Mpls, MN 55418 ~'1--.. ·~ ~ _~ -- ~l! ...
Ph: (612)789-515l oFax: (612)788-I011 Iii'"-"
Other Offices:
Ill-----
A. C. Office Building, Arkansas City, KS 67005 -- -- -"5 ~ Illllllltll --
Ph: (316) 442-4905
CAPABILITY STATEMENT
PROFESSIONAL REDEVELOPMENT RESOURCES, INC. PROVIDES SERVICES RELATING TO .ALL OF THE
FOLLOWING ISSUES .aND SERVICES:
I. Demonstrated capability relating to ensuring compliance with the Uniform
Relocation Assistance and Real Property Acquisition Policies Act {URA), as
amended.
We have a thorough working knowledge of the URA, including the following aspects:
A. Notice Requirements
B. Appraisal Requirements and Standards
C. Review Appraisal Requirements and Standards
D. Acquisition Procedures and Just Compensation Issues
E. Displacement Issues and Eligibility Standards
F. Relocation Waiver Issues
G. Advisory Service Requirements
H. Eviction Requirements
I. Relocation Claim Requirements
J. Moving Cost Requirements:
- Expense Based
- Fixed Claim
- Business Claims (actual or payments in lieu)
K. Business Relocation Issues
L. Replacement Housing Payments
M. Farm Relocation Issues and Claims
¢'apabditv Statement
page 2
N. Mort-gage Differential Payments
O. Closing Expense Payments
P. Rental Assistance Payments:
- Income Issues
- Subsidized Housing Issues
Q. Downpayment Assistance Issues
R. Comparable Dwelling Standards
S. Housing of Last Resort Issues/Requirements
T. Mobile Homeowner Requirements
U. Federal Highway Administration (URA Lead Agency) Regulation Interpretation
Issues as Applied to State Laws, FAA Requirements, HUD Requirements, etc.
V. Recordkeeping Requirements
W. Other URA Requirements, Issues, etc.
II. Acquisition and Relocation Plans:
A. Planning for Federally funded projects per the URA
B. Planning for local or individual client needs
C. Subject plans may include hearing process, acquisition, relocation, legal costs, site
clearance, property management, and other relevant factors.
III. Demonstrated Acquisition and Negotiation Capabilities and Knowledge of:
A. Real Property Laws
B. Acquisition Issues:
-Real Property
-Fixtures
Capablhry Statement
page 3
-Easements
-Avigation Easements
-Partial Takings
-Construction Easements
C. Arbitration and Pre-litigation Efforts
D. Eminent Domain Laws, Issues, and Constitutional Issues
E. Valuation Standards and Issues
F. Closing Services
IV. Project Management Capabilities Relating To:
A. Budget Preparation and Maintenance
B. Coordination Duties Relating To:
-Clients, Their Staff, and Officials
-Displaced Persons
-Appraisers
-Subcontractors
-Client Contractors
C. Property Status Reports
D. Cost Projections
E. Time, Schedule, and Deadline Accountability
F. Solicitation of Public Input
G. Public Hearings - Presentations and Issue Presentations
PROFESSIONAL REDEVELOPMENT RESOURCES, INC.
STATEMENT OF QUALIFICATIONS
RESUME 'OF PAST REDEVELOPMENT PROJECTS
1. SOUTHEASTERN MINNESOTA MULTI-COUNTY HRA (SEMMCHRA).
We have performed several projects for the HRA over the past four yearS which have
included appraisal, acquisition and relocation work.
2. CITY OF WHITE BEAR L~:~.
We have performed both homeowner and tenant/commercial relocation projects for the
City of White Bear Lake.
3. CITY OF SAUK RAPIDS.
We performed the Downtown Redevelopment Project which involves commercial and
residential relocation.
4. CITY OF MAPLEWOOD.
Site acquisition for a community center where commercial and residential relocation was
performed.
5. ST. CLOUt) HRA.
Downtown Redevelopment where commercial and tenant relocation services were
provided.
6. 1V[ERIDIAN HOUSING & TRAINING ASSOCIATES, INC..
We provided work for the Harriet Tubman Women's Shelter which involved tenant
acquisition and relocation in a blighted area of South Minneapolis.
7. EAST SIDE NEIGHBORHOOD DEVELOPMENT COMPANY, INC.
Redevelopment project where homeowner acquisition and homeowner/tenant relocation
was performed.
8. HousiNo COALITION OF ST. CLOUD AREA, INC.
Tenant relocation services were provided for a Low Income Housing Project.
9. HUTCHINSON HOUSING AND REDEVELOPMENT AUTHORITY.
We provided work for the HRA's redevelopment project which includes the acquisition
and relocation services.
PROFESSIONAL REDEVELOPMENT RESOURCES, INC.
STATEMENT OF QUALIFICATIONS
RESUME OF PAST REDEVELOPMENT PROJECTS
(PAGE 2)
10.FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY.
A redevelopment project for which we provided both residential and tenant relocation
services.
11. IOeqs~ DEPARTMENT OF TRANSPORTATION.
We have performed hundreds of parcel acquisitions and relocations for KDOT.
12. CITY OF WINDOM.
Redevelopment project where several homes were bought and homeowners and tenants
were relocated.
13. Numerous other projects involving project planning, apprais, al, review appraisal,
acquisition and relocation services.
KIRK A. SCHNITKER
PRINCIPAL SHAREHOLDER OF:
PROFESSIONAL REDE VEL OPMENT RESOURCES, INC.
Mr. Schnitker is founder and owner of Professional Redevelopment Resources, Inc. and Schnitker
& Associates, P.A. His duties include both management of day to day business operations and
providing consulting and legal services.
From 1978 until 1980 he worked with the St. Cloud, Minnesota Housing and Redevelopment
Authority as a Community Development Assistant. From 1980 until 1989 he worked in
Community Development with the Dakota County Housing and Redevelopment Authority in the
southeastern area of the Minneapolis/St. Paul area. Specific working experience involves
acquisition and relocation laws and regulations, and housing and development and redevelopment
activities. Mr. Schnitker has been involved with hundreds of commercial, industrial, single family
and multi-family acquisition and relocation projects and has worked on dozens of development
projects from site acquisition through to construction.
CUrrently Mr. Schnitker serves on the City Council for the City of t2hamplin and is a past member
of the Champlin Planning Commission. Mr. Schnitker is President of the Champlin Economic
Development Authority and a Commissioner on the Metropolitan Council's Metropolitan Parks'
and Open Space Commission. Mr. Schnitker is also a board member of the American Indian Law
and Policy Research Institute based at Hamline University School of Law and serves as a Board
Member on the Association of Metropolitan Municipalities. Mr. Schnitker is also a Board
Member of the Minnesota Outdoor Heritage Alliance.
Mr. Schnitker has a Bachelor of Arts from St. Cloud State University, and Juris Doctor from
Hamline University School of Law, and is a current Master of Arts in Public Administration
student at Hamline University in St. Paul, Minnesota. Mr. Schnitker is a licensed attorney in the
State of Minnesota.
ADDITIONAL STAFF
Professional Redevelopment Resources, Inc. has additional staff available to perform appraisal,
review appraisal, acquisition, relocation, planning, and property management services. In addition
to individual contractors, Professional Redevelopment Resources, Inc. employs four acquisition
and relocation consultants.
ADDITIONAL STAFF
Geoffrey L. Harper
Mr. Harper has been with Professional Redevelopment Resources, Inc. since July of 1992 performing various staff
support sen'ices as well as more detailed relocation services. Mr. Harper has performed services relating to
Right of Way acquisition work with the Kansas Department of Transportation. These services have included
general file preparation and organization, client contact, and preparation of all aspects of file documentation.
Mr. Harper has also performed various duties involving acquisition and relocation work with projects involving
St. Cloud State University, the City, of Roseville, and the City of Sauk Rapids. Some of his other duties include
work on Davis Bacon Labor Standards issues.
Mr. Harper has a Bachelor of Arts degree in Housing with and emphasis in Management/Finance from the
University, of Minnesota.
Thomas Nicklow
Mr. Nicklow is the real estate law and development professional for Professional Redevelopment Resources. Inc.
As an expert in real property, acquisition and site management work, Mr. Nicklow has been involved in hundreds
of acquisitions involving small and large volume projects. Mr. Nicklow has worked in public real property
acquisition work for nearly 15 years and thoroughly understands the necessary procedural and administrative
requirements public agencies have.
Mr. Nicklow has a Real Estate Broker's license and has a Bachelor of Arts degree from St. Cloud State
University.
Alan E. Webster
Mr. Webster graduated from the University of Minnesota School of Management with a Bachelor of Science in
Business degree with and emphasis in finance. He also graduated from Hamline University School of Law with a
Juris Doctor degree, and is currently licensed to practice law in the State of Minnesota. He is also currently
working on his M.B.A. degree.
Mr. Webster started with Schnitker & Associates, P.A. and Professional Redevelopment Resources, Inc. on
January 1, 1995 performing various consulting and legal duties. Mr. Webster is involved in all aspects of
acquisition and relocation activities performed by Professional Redevelopment Resources, Inc. and is
knowledgeable regarding the Uniform Relocation Assistance and Real Property Acquisition Policies Act.
Jane F. ltuefner
Ms. Huefner joined Professional Redevelopment Resources, Inc. in 1992 as an office manager and R.O.W.
specialist. Ms. Huefner's background is in real estate development and property management. She has worked
in real estate development and Management for Trammell Crow and Lincoln Property Company.
Ms. Huefner is a 1983 graduate of Arizona State University. Ms. Huefner has a real estate license and a Real
Estate Appraisal license with the State of Minnesota.
Ms. Huefner has performed substantial KDOT acquisition work in past projects performed by Professional
Redevelopment Resources, Inc. Ms. Huefner has knowledge of KDOT acquisition and requirements.
EQUAL OPPORTUNITY COMPLIANCE AND
DBE PARTICIPATION STATEMENT
Professional Redevelopment Resources, Inc. shall comply with the client's policy of non-
discrimination based on policies it has established in conformance with federal employment
requirements.
1. Non-Discrimination - The consultant will not discriminate against any employee or
applicant for employment because of race, color, national origin, age, sex, handicap or status
with regard to public assistance or disability which includes, but is not limited to, the
following: employment, upgrading, demotion or transfer, recruitment or recruitment
advertising; lay-off or termination; rates of pay or other forms of compensation; and
selecting for training, including apprenticeship.
2. Affirmative Action Program - The Consultant will strive to implement the principles of
equal employment opportunity through an effective affirmative action program, which shall
have as its objective to increase the utilization of women, minorities, and handicapped
persons and other protected groups, at all levels of employment in all divisions of the
Consultant's work force, where these groups may have been previously under-utilized and
under-represented The Consultant agrees that in the event of any dispute as to compliance
with the aforestated requirements, it shall be his responsibility to show that he has met all
such requirements.
3. Compliance With The Client's Policy - The Consultant will comply with all policies as
they relate to the above involving equal opportunity and non-discrimination.
4. Subcontract Work - Real estate services, appraisal work, demolition and other services
could be subcontracted to DBE companies.
5. DBE Subcontractable Work - Any items stated in Paragraph 4 above could be
subcontracted to DBE companies depending on the availability of appropriate DBE
companies.
6. Kirk Schnitker, President and principal shareholder of Professional Redevelopment
Resources, Inc., is 1/16 Dakota American Indian. Further, Professional Redevelopment
Resources, Inc., is sensitive to client requirements regarding DBE goals. We recognize
client requirements and will make all necessary efforts to comply in this area by
subcontracting with DBE companies and/or to aid the client in procuring such services from
DBE companies.
Professional Redevelopment Resources, Inc. ~..
2300 Central Ave. N.E., Mpls, MN 55418 I~'l--- ,l:"- '----2 _~, -- -::
Ph: (6,2,799-5,5, o Fax: (6,2t 755-,0,, '""
Other Offices: ii1_= iiiii
A. C. Office Building, Arkansas City. KS 67005 Illllllllll -- '
Ph: (316) 442-4905
12 July 1995
Ms. Sarah Bellefuil
Administrative Analyst
City of New Hope SENT VIA FAX
4401 Xylon Ave. No.
New Hope, MN 55428-4898
Dear Sarah:
As a follow up to the proposal results letter dated July 10, I wanted to clarify our proposal
and interest.
First, we consider it a privilege to make a proposal to the City. We see this particular job
as a significant job and one that deserves the quality serVices that we provide. Secondly,
we want to make it clear our proposal was for a fixed price contract. This is what all our
clients desire. We provide an homi.~ r,~ce only for work done outside the scope of our
proposal. Generally, our competition does the same, therefore we believe it is fair to base
selection on what the fixed price contract will be plus qualifications. I can assure you that
if we change an hourly rate for all relocation work our overall project fees would be much
higher than a per unit fixed price contract. All qualifications being equal, the fixed price
approach will give the City the best bang for its buck.
At this time, I request you reconsider our proposal as compared to our competitors per
unit costs. If we can clarify anything in our proposal please let me know.
Thank you again for your consideration. Please call me to discuss.
/
~4~. ~chn: 'itker
1~'., e~sident
ce: Dan Donahue, City Manager
Kirk McDonald, Management Assistent/Community Development Coordinator
Steve Sondrall, City Attorney
Improvement Project #541
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
~,..~24-95
Sarah Bellebuil ~ i Item No.
/
By: Administrative Analyst By: ///
, 8
MOTION APPROVING QUOTE FROM W~OBLESKI'S LAWN SERVICE IN THE AMOUNT OF
8,300.60 FOR THE LANDSCAPING FOR THE PROPERTY AT 7901/7909 51ST AVENUE NORTH
(IMPROVEMENT PROJECT #505)
The City of New Hope purchased the property located at 7901/7909 51st Avenue North from HUD on
February 7, 1994. Currently construction of a handicap accessible twin home is taking place at the site.
Construction is scheduled for completion in early August.
On June 26, 1995, the New Hope Economic Development Authority approved plans and specifications
for landscaping at the property. City staff sought bids for landscaping of the site and received the
following quotes:
FIRM QUOTE
Wrobleski's Lawn Service $8,300.60
Midwest Landscapes $8,402.02
Seaberry Landscape, Inc. $11,346.49
Staff recommends accepting the low quote from Wrobleski's Lawn Service in the amount of $8,300.60.
Staff recommends approval of a motion by the EDA approving the quote from Wrobleski's Lawn
Service in the amount of $8,300.60 for landscaping the property at 7901/7909 51st Avenue North
(Improvement Project #505).
MOTION BY /~/ff~.L_~ SECOND BY ~~(~
Review: Administration: Finance:
RFA-O01 ~
WROBLESKI'S LAWN SERVICE
4544 ROSEWOOD LANE NORTH
PLYMOUTH, MN 55442
553-1845
TOM SCHUSTER
CITY OF NEW HOPE
5500 INTERNATIONAL PARKWAY
NEW HOPE MN. 55428
ESTIMATE: 7901 & 7909 51ST. AVE. N.
7 6' BLACK HILLS SPRUCE $1100.00
3 2" RED SPLENDOR CRAB $520.00
3 2" QUAKING ASPEN $600.00
3 2.5" RED OAK $1131.00
2 2" GREENSPIRE LINDEN $400.00
13 24" SCANDIA JUNIPER $300.00
6 24" DWARF KOREAN LILAC $132.00
7 18" GOLDFLAME SPIREA $140.00
12 24" APLINE CURRANT $220.00
3 36" CHARLES JOLY LILAC $80.00
3 36" AMERICAN CRANBERRY BUSH $75.00
9 24" TAUTON YEW $800.00
1465 YARDS OF SOD INSTALLED $1 670.10
285 FEET OF STEEL EDGING $427.50
MULCH AND LANDSCAPE FABRIC $700.00
TOTAL BID AS BY SPECIFIC AND GERERAL REQUIREMENTS
TOTAL COST $8300.60
Quote/Ordr~ 221
TOM SCHUSTER 7901 & 7909 - 51ST AVE. N
CITY OF NEW HOPE NEW HOPE, MINNESOTA
5500 INTERNATIONAL PKWY.
NEW HOPE, MN 55428
7 EA SPRUCE, BLACK HILLS 06' 158.69 1,110.83
3 EA CRAB, RED SPLENDOR 2" 148.96 446.88
3 EA QUAKING ASPEN, 2"DB 223.44 670.32
3 EA OAK, RED 2.5" 287.28 861.84
2 EA LINDEN, GREENSPIRE 2" 180.88 361.76
13 EA JUNIPER, SCANDIA 24" 25.05 325.65
6 EA LILAC, DWARF KOREAN 24" 15.30 91.80
7 EA SPIREA, GOLDFLAME 18" 14.39 100.73
12 EA CURRENT, ALPINE 24" 14.39 172.68
3 EA CHARLES JOLY LILAC, 36" 16.63 49.89
3 EA VIBURNUM, HIGHBUSH 36" 17.44 52.32
9 EA YEW, TAUNTON, 18" (SUB. FOR 24") 34.70 312.30
1,465 SY SOD 1.25 1,831.25
285 LF EDGER, STEEL 3/16" X 16' 3.00 855.00
861 SF BARK, SHREDDED HARDWOOD (3" DEEP WITH FABRIC) .57 490.77
i EA TILL SOIL AND ADD COMPOST TO SHRUB BEDS 368.OO 368.00
18 EA PLANTING SOIL AMENDMENT 6.OO 108.00
FOR 18 TREES
32 EA RINGS OF MULCH FOR PLANTS 6.OO .192,00
ADD ALTERNATES:
- TOPSOIL FOR SOD @
$1,830.OO (3" DEEP)
- WATER SOD AS NEEDED FOR 30 DAYS = $1,500.OO
Tota 1 8,402.02
~11 materials guaranteed to be as specified and the above work to be performed in accordance t~th the drawing,, and ,pec~fication, qubmttted and
completed in a qubstantial workmanlike manner. Any alterationq or deviation from above '~peclfications Involving extra coqt, ~dl become an
charge over and abo~e the estimate. &il agreementq are contingent upon ~,tnkes. accidents or delay~ ht.?ond our tenth4 ()s~ncr h~ pro~dc tire.
WARRANTY
Midwest Landscapes. Inc. will e once an7 tree or ~hrub that fails to live for one ?'ear from the date of planting pro~ided the plant has been
properly mmntmned, the loss has been mlX)ned within one year. the 1o,,~, has not been caused by insects or disease, and the account has been prod tn
full including finance charges within 50 days of the. in,race date.
ACCEPTANCE OF PROPOSAL
The above prices, specifications and conditions are satisfactory, and are hereby accepted. You are anthonzed to do the work as
Date Signature
PAYMENT TERMS
Payment in full due in 30 days from substantial completion.
A 1.5) finance charge will be assessed on the )zst day and each
month thereafter until paid.
I under~tand that a finance charge of 1,5% per month on the overdue balance will be charged if payment is not made a.q gpecified above
Midwest Landscapes. Inc has the fight to file a lien against the propert,,, where work has been performed but pa),ment ha:, not been made Thc
v, ill be filed within 120 day~ of completion and will include finance charges and filing fees I understand that if legal action must be taken m c¢llccl
my account, all coq,;, including attorney ,; l:ee~; will be paid by me,
ACCEPTANCE OF PAYMENT TERMS
[)ate Signature
15050 93RD AVENUE NORTH · MAPLE GROVE. SIN 55360 · 612-420-4201
IUL 1S '95 ~3:3:O1PP1 HEHi",IING, ROHDE...SEABERRY LANDSCARE =', 2 S
SEABERRY LANDSCAPE INC.
3259 Terminal Drive
OFFICE
Eagan, MN 55121
612-454-9511
Customer: Page 1
CITY OF NEW HOPE Quote Date: 07/18/95
5500 INTERNATIONAL PARKWAY Quote Exp. Date: 09/01/95
Salesperson:BRYAN SCHANTZ
NEW HOPE, MN 55428 Quote Number: 2678
(612) 533-7650
Comments: 7901 & 7909 51ST. AVE. NORTH, PROPOSAL
Description DIG Qty Price Ext. Price
SPRUCE, BLACK HILLS 6FT B&B YYY 7 227.74 1594.18
CRABAPPLE, RED SPLENDOR 2"B&B YYY 3 200.00 600.00
ASPEN, QUAKING CLUMP#20 CONT YYY 3 158.04 474.12
OAK, RED 2.5" YYY 3 377.34 1132.02
LINDEN, GREENSPIRE 2" B&B YYY 2 241.54 483.08
JUNIPER, SCANDIA #5 YYY 13 29.86 388.18
LILAC, DWARF KOREAN #5 YYY 6 31.98 191.88
SPIREA, GOLDFLAME #2 YYY 7 21.19 148.33
CURRANT, ALPINE #5 YYY 12 31.98 383.76
LILAC, CHARLES JOLY 36" B&B YYY 3 42.00 126.00
VIBURNUM, COMP.AMERICAN 36" B&B YYY 3 55.00 165.00
YEW, TAUNTON 24" B+B YYY 9 92.76 834.84
SODDING YYY 1465 1.38 2021.70
STEEL EDGING YYY 285 5.65 1610.25
WOOD MULCH 1365 SQ. FT. YYY 1365 0.71 969.15
POTTING SOIL FOR TREES YYY 8 28.00 224.00
NOTE: WATERING SODDED AREAS BY SEABERRY LANDSCAPE WOULD BE AT A
MAXIMUM COST OF 100 MAN HOURS AT A COST OF 30,00 PER HOUR~
THE # OF MAN HOURS COULD GO DOWN WITH COOL WET WEATHER AND
WOULD BE ADJUSTED ACCORDINGLY,
Taxable: 0.00
Exempt: 11346.49
Tax: 0.00
Total: 11346.49
LANDSCAPE SCHEDULE
7901 & 7909 51ST
Quantity; Common Name; (Botanical); Size;
TREES: 18
7 Black Hills Spruce "BHS' 6' b & b
(Picea glauca densata)
3 Red Splendor Crab "RSC' 2" b & b
(Mmlus "Red Splendor")
3 Quaking Aspen #QA' 2" b & b
(Populus tremuloides)
3 Red Oak "RO' 2 1/2" b & b
(Quercus rubrn)
2 Greenspire Linden "GL" 2" b & b
(Tilia cordura' "Greenspire')
SHRUBS: 53
13 Scandia Juniper "SJ" 24" - 5 gal.
(/uniperus sabina "Scandia")
6 Dwarf Korean Lilac "DKL' 24" - 5 gal.
(Syringa palibiniana)
7 Goidflame Spirea "GS" 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 $oly)
3 American Cranberry Bush "ACB' 36" - b & b
(Viburnum trilolmm)
9 Tauton Yew "TY" 24" - b & b
(Taxus x media 'Tauntoni')
EDA
REQUF_~T FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
t// Item No.
Sarah Bellefuil
Administrative Analyst By: .~,/ 9
By:
RESOLUTION AUTHORIZING PUBLICATION OF NOTICE AND HOLDING OF A PUBLIC
HEARING REGARDING SALE OF 7901 51ST AVENUE NORTH (IMPROVEMENT PROJECT
//505)
City staff have found a buyer, Carey Luckeroth, for the second unit of the handicap accessible twin
home being built at 7901/7909 51st Avenue North and a Purchase Agreement will be executed, subject
to the approval of the EDA. By law, a public hearing regarding the sale must be held with at least 10
days published notice. The attached resolution authorizes the public hearing and publication of the
notice. The public hearing would then be conducted at the August 14th Council/EDA meeting.
Staff reommends approval of the resolution authorizing publication of notice and holding of a public
hearing regarding sale of 7901 51st Avenue North (Improvement Project//505)
Review: Administration: Finance:
RFA-O01
......... ~ ~ P, 02/02
EDA RESOLUTION NO. 95-__
RESOLUTION AUTHORIZING
PUBLICATION OF NOTICE AND 'IHE HOLD[N~ OF A PUBLZC HEARING
RFCARDTN~ RAi,F OF 7901 51ST AVENUE NORTH
WHEREAS, the Fconomic Development Authority in and for the
City of New Hope is the owner of certain property known as 7901
51st Avenue North, to be legally described as:
Lot 2~ Block 1, Marky Addition, Hennepin County,
Minnesota (the "Property"),
and
WHERE~, the property consists pt real estate to be improved
b/ c!ozing with one unit of a handicap accea~ible twin home
WNERFA~, the EOA staff has been working with Hennepin County
and the Minnesota Housing Finance A~ency to sell the property to a
Tirst time handicapped home buyer who may otherwise not qualify for
a mortgage to purchase the oroperty, and
WHEREAS~ the EDA will be entering into
with Carey A. Luckeroth, and
WHEREAS, the EPA ha~ authorl ty to se11 the property under
Minn. Stat. §§469.091, 469.105 and 469.029, and
WHEREAS, published notice ~nd a public hearing are required
before the property can be sold.
NOW~ THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of New Hope as follows:
1. That a public hearing on the sale of the property to
Carey A, Luckeroth shall be held on August
set forth in the Notice of Public Hearing attached hereto
as ~xhibit A,
2. That the City Clerk is directed to publish the Notice of
Public Hearing as set forth in the attached Fxhibit A.
Adopted by the Economic Development Authority in and for the
city of New HOp~ thi~ day of July, 1995.
Edw. J, Er~ckson, Chairman
Attest:
· --~ Daniel J. Donahue, Executive Director
?,02/02
NOTICE OF PUBLIC HEARING PER MINN. STAT.
CHAPTER 469 AUTHORIZING SALE OF PROPERTY
AT 7g01 B1ST AVENUE NORTH
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF NEW HOPE
Notice is hereby given that the Economic Development Authority
in ar, d for the City of New Hope, Minnesota, will meet on the 14th
day of August, 1995, at 7:00 o'clock p.m. at the City Hall, 4401
~y1o~ Avenue North, in said City for the purpose of holding a
public hearing to consider [he sale of the following described
~ro~erty to Csrey A. Luckeroth:
7901 51st Avenue North
New Hope, Minnesota 55428
(Lot 2, Block 1 of Marky Add~tion~ Hennepin County)
The public may see the terms and conditions of the sale at the
City Hall and that at said public hearing, the Economic Development
Authority will decide if the sale is advisable.
All persons interested are invited to appear at said hearing
for the purpose of heine heard with respect lo the zoning code
amendment,
Auxiliary ~ids for persons with disabilities ~re ~vailable
upon request at least 96 hours ~n advance. Please contact the
City Clerk to make arrangements (telephone 831-61t7, TDD
number 531-5109),
Dated the 25th day of July~ 1995.
s/ Valerie J. Leone
Valerie 0. Leone
City Clerk
(Published in ~tle New Hope-Golden Valley Sun-Post on tbs 3rd day of
Augu.~t, 1~95.)
~LR1 Bi'£ A
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
i795
Sarah Bellefuil Item No.
By: Administrative Analyst By: 10
/
REQUEST APPROVAL OF THE MINNESOTA CITY PARTICIPATION PROGRAM (MCPP)
APPLICATION COMMITMENT AGREEMENT FOR PARTICIPATION IN THE MINNESOTA
CITY PARTICIPATION PROGRAM.
On May 22, 1995, the New Hope Economic Development Authority approved the submission of the
Minnesota City Participation Program (MCPP) application to the Minnesota Housing Finance Agency
(MHFA). The MHFA approved the application and requested that the MCPP Application Commitment
Agreement be returned to the MHFA by July 7, 1995. Because of this short time line, President
Erickson signed the MCPP Application Commitment Agreement and it was sent to the MHFA with the
understanding that the EDA would not deliver a motion on the Agreement until the July 24, 1995, EDA
meeting.
This request asks the EDA to approve that President Edward Erickson sign the MCPP Application
Commitment Agreement for submission to the MHFA. Also with this approval, the City will submit
a check to the MHFA for $4,578.96. From these funds, $4,498.96 will be returned to the City in
September, and $80 will be retained by the MHFA as a processing fee.
The Minnesota City Participation Program provides below-market interest rate mortgage loans to first-
time low and moderate income homeowners who wish to buy a house in New Hope. This year, the
total amount allocated by the MHFA to the City of New Hope is $449,896. The money will be
available through various lending institutions beginning in late July, and will be available for six months.
Staff recommends approval of the request.
MOTION BY /Ag ~/~'Af.6//)t~ SECOND BY
TO: F2.0 . J -
/ !
Review: Administration: Finance:
RFA-O01
MINNESOTA HOUSING FINANCE AGENCY
MINNESOTA CITIES PARTICIPATION PROGRAM
PROGRAM APPLICATION-COMMITMENT
AGREEMENT
THIS APPLICATION AND AGREEMENT is made and entered into by and between
the New Hope Economic Development Authority (hereinafter refereed to as the "City"), with its
office at 4401 Xylon Avenue North, New Hope, Minnesota 55428, and the Minnesota Housing
Finance Agency (hereinafter referred to as the "MHFA"), with its office at 400 Sibley Street- Suite
300, St. Paul, Minnesota 55101-1998.
WITNESSETH:
WHEREAS, the MHFA, under the provisions of Minn. Stat. §474A.061 Subd. 2a (1995
Suppl.), is authorized to issue qualified mortgage bonds, as such term is used in the Internal
Revenue Code of 1986, as amended through the date of this agreement, on behalf of the City, and
it has issued, or will issue, such bonds on the behalf thereof; and
WHEREAS, the MHFA has implemented the Minnesota Housing Finance Agency
Minnesota Cities Participation Program (hereinafter referred to as the "Program"), and is using, or
will use, the proceeds from the issuance of such bonds to fund the Program; and
WHEREAS, the City has requested and received a set-aside of funds from the Program;
and
WHEREAS, the City wishes to obtain a commitment by MI-H:A to purchase mortgage
notes and mortgages (hereinafter referred to as "Mortgages") which will be originated by a lender
or lenders which meet MHFA requirements for participation in programs funded by qualified
mortgage bonds, designated by the City (hereinafter cumulatively referred to as the "Lender"); and
WHEREAS, Mortgages to be purchased by the MI-IFA pursuant to the commitment
requested by the City must only be for residences located'within a geographic area to be established
and designated by the City; and
WHEREAS, the MHFA is willing to issue a comminnent wherein it will agree to purchase
Mortgages which are (i) originated by the Lender, (ii) reviewed, when required by the MHFA, in
its sole option and discretion, by an entity to be designated by the MI-IFA (hereinafter referred to as
the "File Reviewer"), and ('tii) are in accordance with the terms and conditions of this Agreement,
the Program, and a procedural manual to be supplied by the MHFA (hereinafxer referred to as the
"Procedural Manual"), the provisions of which are hereby incorporated by reference into this
Agreement as if set forth in full ~ and
WHEREAS, MI-IFA is willing to issue to the Lender a commitment under this Agreement,
after it has been fully executed by all of the parties hereto (the fully executed document is
hereinafter referred to as the "Pro.-am Commitment Agreement"), to purchase Mortgages
originated by the Lender in accordance with the tm'ms set forth hereinbelow, the provisions of the
Program and Procedural Manual, and the terms of any other agreement entered into between the
1VIHI:A and the Lender.
NOW, THEREFORE, in consideration of the covenants hereinafter contained and the
mutual benefits to be derived therefrom, the parties he.to do he. by agree as follows:
1. City Requirements. All Mortgages submitted to the MI-IFA for purchase under the
Program must comply with all of the requirements of the Program. and all of the requirements and
provisions contained in the Procedural Manual and the Program Commitment Agreement.
2. Commitment and Commitment Amount. The City hereby applies for a
commitxnent by Mi-IFA to purchase Mortgages which (i) have been originated by the Lender, (~)
have been reviewed and approved, where applicable, by the File Reviewer. and (iii) meet the
requ/remeats of and ate made in accordance with the provisions of the Program Commitment
Agreement, the Program, and the Procedural Manual; and the MHFA, by accepting this Program
Application-Commitment Agreement, commits to the purchase of such Mortgages in the aggregate
l:n'incipal amount (hereinafter referred to as the "Commitment Amount") set forth hereinbelow.
All Mortgages to be purchased by the MHFA pursuant to the Program Commitment
Agreement shall be only for property which, and borrowers who, satisfy the requirements and
provisions of the Program Commitment Agreement, the Program, and the Procedural Manual. the
City acknowledges that the commitment herein applied for shall be effective only upon thc approval
thereof by MHFA at the place provided for hereinbelow, and the delivery of a copy of the same by
MI-IFA to the City, which approved application shall constitute the Program Commitment
Agreement.
city Pa~icipation Program Form 95-I 1 (Ve~ - 6/2/95)
3~ Variance in Commitmem Amount.~A~ vat. ce of Fifteen Thousand and
Dollars ($I$,000.00) in the total principal amount of Mortgages purchased under the Program
Commim~ent Agreement., above or below the Commitn~nt Amount, shall be deemed by the MI[FA
to cons~rute comphance wi~ the Program Commim'ent Ag~ement.
4. Commencement of Activity. Upon the acceptance, execution, and delivery of the
Program Commitment Agreement by MI-IFA to the City, the City shall select and designa~ Lender,
md shall have Lender enter into and execute a Lender Application-Commitment Agreement in a
form to be supplied by the MI-IFA. Lenders must meet MI-IFA requirements for part~cipazion in
programs funded by qualified mortgage bonds.
$. Commitment Term. The term of the Program Commitment Agreement and the
City's participation in the Program (hereinafter referred to as the "Commitment Term") shall
commence on a da~e to be selected and specified by the MI-IFA, ~nd shall continue for a period of
t~ne to be established by the MI-IFA, in ils sole option and diac~tinn, provided, however, such
time period shall not be less than Six (6) months. The IVlIql:A shall transmit a wrinen notification
to the City of the date on which the Commitment Term shall commence. The Program
Commitmmt Agreement, and the Cizy'$ par~pmon in the Program, shall mtomatically terminal,
without the need for any action by either parry hereto, at the md of the Commimmat Term.
6. Set-&side Term. The Commitment Amount shall be set-uide and held by the
MI-IFA for the sole use by the City for a period of time to be est,%blished by the MHFA, in ils sole
option and di$c~tion, lmavid~, however, Su_c,b, time period shall not be less than Four (4) months
(hereinafter referred to as the' Sot-A~ide Term ) commmcing on a date to be selected and specified
by the MI-IFA. The MI-IFA shall wansmit a written notific~on to the City of the da~ on which the
Set. Aside Term shall commmce.
Any portion of the Commitment Amount not reserved for the purchase of qualifying
Mortgages as of the end of the Set-Aside Term shall be cancelled and returned to the MI-IFA for
redistrihutlon under the Program in accordance with the provisions contained in the Procedural
Manu.~.. In .addition, any portion of the C.o..mm~.nt Amount reserved for Mortgage$ which are
not delivere~ to me MHFA for purchase within the time l~-od delineated in the Procedu~ Manual
for Such purchase, shall be cancelled md returned to the MHFA for redistribution under the
Program, and any funds contained in the Proglatm at.tha end of the Commitment Term shall
become funds of the MI-iFA, and uansferred to whatever program the MIqFA, in its sole option
and discretion, may designate.
7. Commitment Fees. No commitment fee shall be payable by the City for ~e
commimm~t by the MI-IleA to purchase qualifying Mortgages.
8. l~urchsse larice. The pmcha~ price of each Mortgage to be purchased by ~A
9. Mort~e Terms. The interest rat~ for tll Mortgages shall be set f~om time to time
by the MI-IFA, at m sole option and discretion, by way of a wrinen statement to the Ci~ and the
~ la'ovided, however, any ch~ge in interest xate shall only IR}ply to Mo~gages for which an
individual commitmem is issued ~ter the City and the lender have received Such notification of
interest ra~ change. Mortgages shall meet all requirements of the Program, and those set forth in
.m ..Ppsam _Comm~m'~t ~grm~, m ~ ~mu~ ~ ~ m ori~g I.~mr
App_lication.4comminnent A~eement or the Direct Seller Application-Commim~ent Agreement,
10. A~nl. insi.la~ 'l'neCityherebyspeci~allyagreesthatthaMHFAshaU, pursuam
t.o the Program Corem:truant Agreement, be t~lUind to purchase only those Mor, pges wttich are
1 I. Warranties. The City hereby warrants to Mi-IFA ~,.t. upon approval and delivery of
.me. Program Conunimznt A~oment by MI-iI:A and m subsequent purchase by and delivery of
Mo~p~es to MI-IFA Imrsuant thereto, all sue. h Mortgages will have been made in compliance
Commitment A . .lp,~.~e~t,' the Program, and the Proe__e~_ural Manual, and aH warranties set forth in
· e Pmcedu~ Mahual a~e edOla~d and made by the City, and shall be appticable to each such
M~
13. Remedies. Time is of the essence Isneof. In ~he event that the City defaults in the
observance or performance of any covenant m ~:ndition in the Program Commitment A~eement
~ Procedural Manual, or in the event that any warranty made by the City with respect to any
Mortgage is found to be unnue, then the MI.I~A shall be entitled to all ren'mJies at law orin equ~y
cgreemem,luding, but not limited to; (i) the right to ~ acceptance of the Program Cogent
(ii) ~'z right to __~e_-_~ equita~ relief by way of injunction (mandatory or pnRdbitory) to
City Pm~ti~ao~ Pr~t~m Ferm 9~-1 2 (V~ - 6F2~)
prevent the breach or threatened breach of any of the provisions of the Program Comment
Agreement. or to enforce the performance thereof, (iii) the right to seek damages, including
consequential damages, a.rising by virtue of the MI-.IFA's sale of its debt securities in reliance on
the City's observance and performance of the provisions of the Program Commitment Ag'moment,
and (iv) the right to tm, mina~ the Program Comment Agreement, and upon such t~rminimon the
City shall have no further rights pmsuant hereto, provided, however, that such termination shall
not diminish MH'FA's rights specified in the Program Commitment Agreement and in the
Procedura] Manual. All such remedies shaLl be cumui~ve, and the ex~tcise by the MI{FA of any
one or more of them sha,ll not in anyway alt~r or diminish the I~-IFA's right to any other remedy
provid~ herein or by law.
14. Contract Documents. All Mortgage transactions between the City and the MI-IFA
pursuant to th.e .Program Commitment Agreement are on a contractual basis, The conu'ac~ in each
instance cons~ung of the Program Commim~ent Agreement and the provisions and requirements
c.optaiued in the. Procedura~ Manual, with all amendments and supplements thereto in a~y form in
erzect as of the Gate of the MI-tFA's acceptance of the Progra~ Commitment Agree~
15. Assigomeat, Neither this Program Application-Commitment Agreement, the
l~.gram Co.mmi ~m?rn A~t, nor any interest the:em is assignable or u'ansfe~le by the City,
or ay operanon ot mw, w~nout me prior wrinen consent of the MHFA.
16. Paragraph Captioes aed lh'o~ram Headier. The captions and headings of the
Laragraphs of this Agreement ate for convenience only, and shall not be used to interpret or define
e provisions thereof.
17..A.p. plicable Law. The l~.grarn Co.mm~. ot Agreement is made and entered into in
the State az ~znnesota, and all ques~mns relating to the validity, construction, performance and
enforcement hereof shall be governed by the laws of the Staze of Minnesota.
18. Agreemeat Coeditioaal Upoo MI. IFA Approval. The Program Commitment
egveryemen. t shall be a. binding oblig.ati.'on of the MI-IFA upon its execution by the MI-IFA and
ora. copy of. me same to the Cra/. In the event tha~ this Program Application-Commim~ent
greement ts not, zot any tea. son, so executed and delivered by the MHFA on at before the
day of ,1995, it shall be null and void aad of no force at effect.
19. I~uaeoe of Boods. The City does hereby anthottze the MI-IFA to issue, on behalf
.of the Ci~, qualified mortgage bonds, as such mtrn ts used in the Internal Revenue Code of 1986,
m .an .amo.unt equ.al to th.e Commi~nent Amount, and the MI-IFA a~ees to so ~_~e such bonds if
aaa when ~ law anmotizes and the MHFA deems tt is economically feasible to do so.
(THE REMAINING PORTION OF THIS PAGE IS INTENTIONALLY LE~T BLANK)
IN WITNESS WHEREOF, the City has set its hand this 7Chday of July,
1995.
CITY:
NEW HOPE ECONOMIC
DEVE].OPMENT AUTHORITY
. (Signgn~ of Authori/~.d Officer)
Mayor & President
(Printed or Typewritten Name of
Authorized Officer)
REQUESTED COMIVI1TMENT AMOUNT $750.000
MHFA APPROVAL
IV[HFA hereby accepts the above Program Applica~ion-Comm/~ent Agreement and approves
and grams the following:
APPROVED COMAd/TMENT AMOUNT $4.49.896
MINNESOTA HOUSING FINANCE AGENCY
By:
Michael Haley
Its: Director. Minnesota Homes Division
Signed this day of July, 1995.
SUMMARY
(To be completed by MHFA)
City's requested commit~nt amotmt $750.000
Commimmat Amount granted by MI-IFA ~449.896
City ParUciga~on Program Form 95-1 4 (V~. 6/2~95)
MINNESOTA HOUSING FINANCE AGENCY
MINNESOTA CITIES PARTICIPATION PROGRAM
REQUEST FOR ISSUANCE OF BONDS
The undersigned does hereby re. quest and authorize the Minnesota Housing Finance Agency
(hereinafter referred to as the "MHFA") to issue bonds on its behalf under the MHFA Minnesota
Cities Participation Program, and to perform any and all acts necessary to issue such bonds,
including, but not limited to, the advancement of any funds or fees, which the undersigned agrees
to reimburse to the MHFA.
[tS: Mayor & President
(MCPP Rqst fa~ Issnc~ of Bnds)
- MCPP 1995 Fee Schedule
Final Allocation Processing Total Fees
Applicant Allocation Fee Fee Due
City of Albert Lea $379,635 $3,796.35 $80.00 $3 876.3 5
Anoka HRA $361,459 $3,614.59 $80.00 $ 3 6 9 4.5 9
Austin H RA $453,308 $4,533.08 $100.00 $ 4 6 3 3.0 8
Belle Plains HRA $100,000 $1,000.00 $20.00 $1 020.00
Bemidji EDA $230,800 $2,308.00 $40.00 $ 2 3 4 8.0 0
Brainerd HRA $258,776 $2,587.76 $60.00 $2 647.76
Brooklyn Center EDA $589,984 $5 899.84 $120.00 $ 6,01 9.8 4
Brooklyn Park EDA $1,201,866 $12 018.66 $240.00 $1 2 268.66
Buffalo HRA $156,692 $1 566.92 $40.00 $1 606.92
Columbia Heights HRA $392,847 $3 928.47 $80.00 $4 008.47
Crystal EDA $492,264 $4 922.64 $100.00 $5 022.64
City of Detroit Lakes $150,076 $1.500.76 $40.00 $1 540.76
City of Duluth $1,765,590 $17,655.90 $360.00 $18 015.90
Eden Prairie HRA $877 584 $8,775.84 $180.00 $8 955.84
Elbow Lake EDA $100 000 $1,000.00 $20.00 $1 020.00
Elk River HRA $256 501 $2,565.01 $60.00 $ 2 6 2 5.01
City of Fregus Falls $257 804 $2,578.04 $60.00 $2 638.04
Fridley HRA $584 898 $5,848.98 $120.00 $5 968.98
City of Glencoe $100 000 $1,000.00 $20.00 $1 020.00
City of Hopkins $339 231 $3,392.31 $60.00 $ 3 4 5 2.31
Hutchinson HRA $247,300 $2,473.00 $40.00 $2 513.0 0
Lake City EDA $100,000 $1,000.00 $20.00 $1 0 2 0.0 0
Little Falls HRA $154,687 $1,546.87 $40.00 $1 586.87
Mankato HRA $649,969 $6,499.69 $120.00 $6 619.69
City of Maple Grove $750,000 $7,500.00 $160.00 $7 660.00
City of Maple Lake $100,000 $1,000.00 $20.00 $1 020.00
City of Moorhead $681,047 $6,810.47 $140.00 $6 950.47
Morrison County HRA $250,000 $2,500.00 $60.00 $2 560.00
City of Mounds View $260,761 $2,607.61 $50.00 $2 667.61
New Hope EDA $449,896 $4,498.96 $80.00
Owatonna HRA $415,675 $4,156.75 $80.00 $4 236.75
City of Perham $100,000 $1,000.00 $20.00 $1 020.00
Plymouth HRA $500,000 $5,000.00 $100.00 $5 100.00
Rice County HRA $1,057,063 $10,570.63 $220.00 $10 790.63
Richfield HRA $734,829 $7,348.29 $140.00 $7 488.29
Robbinsdaie EDA $297,959 $2,979.59 $60.00 $3 039.59
City of Sauk Rapids $182,684 $1,8-26.84 $40.00 $1 866.84
EDA
~ REQUF~T FOR ACTION
Orlgtnattng Department Approved for Agenda Agenda Section
City Manager EDA
'~--7r24_95
Kirk McDonald/!' / Item No.
Wv: Management Assistant Bv: [/ 11
RESOLUTION APPROVING GILL BROTHERS FUNERAL CHAPEL, INC. EXCLUSIVE
NEGOTIATIONS AGREEMENT AND '"AUTHORIZING THE PRESIDENT AND EXECUTIVE
DIRECTOR TO SIGN (IMPROVEMENT PROJECT NO. 523)
At the June 26th EDA meeting, the EDA discussed a Purchase Agreement submitted by Gill Brothers
Funeral Chapel, Inc. for the City-owned property at 42nd and Nevada Avenues. The EDA indicated an
interest in the proposal and directed staff to meet with Gill Brothers to better define the plans and their
request for City financial assistance. The staff and City Attorney met with representatives of Gill Brothers
and Miller Funeral Home Design/Construction on July 11th. The initial site plan showed the building
located to the far east side of the property, with parking on the remainder of the parcel and three curb cuts
onto 42nd Avenue. The prospective purchasers had contacted Hennepin County about the curb cut issue
and were informed that the County will only allow one curb cut on 42nd Avenue. Therefore, Gill Brothers
indicated that they would need to revise the site plan and move the structure closer to the center of the
property. This will necessitate the moving of the existing 36 inch RCP storm sewer crossing to the middle
of the site. It was determined that the following steps would be taken to better define their
proposal/request:
1. City Engineer would provide Miller Funeral Home Design/Construction with cost estimates
regarding the cost to relocate the storm sewer.
2. Gill/Miller would incorporate these costs into their total project costs.
3. Once total project costs are known, Gill will make a formal request to the City for financial
assistance and present revised site plans.
Total project costs and revised site plans will not be ready until the end of July and it is anticipated that
they will make a formal presentation/request to the EDA in August.
In an effort to continue negotiations/cooperation on this proposed development, the City Attorney
recommended that Gill Brothers and the City execute the enclosed Exclusive Negotiations Agreement
regarding the property. The Agreement provides Gill Brothers Funeral Chapel, Inc. the exclusive right!
to negotiate a Development Contract with the City for the property over the next 90 days. The Agreement
lays out the rights and obligations of each party during the 90-day period and states that if an agreement
cannot be reached, the obligations of each party under the Agreement will terminate and neither party shall
incur any obligation to the other in such event.
Staff recommends approval of the resolution.
!
Review: Administration: Finance:
RFA-O01 ~
EDA RESOLUTION 95-
RESOLUTION APPROVING GILL BROTHERS FUNERAL
CHAPEL, INC. EXCLUSIVE NEGOTIATIONS AGREEMENT
AND AUTHORIZING THE PRESIDENT AND
EXECUTIVE DIRECTOR TO SIGN
WHEREAS, the Exclusive Negotiations Agreement between the
Economic Development Authority (EDA) in and for the City of New
Hope and Gill Brothers Funeral Chapel, Inc. has been prepared and
presented to the EDA.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of New Hope as follows:
1. That the Gill Brothers Funeral Chapel, Inc. Exclusive
Negotiations Agreement is hereby approved and the
President and Executive Director are authorized to sign..
Adopted by the Economic Development Authority in and for the
City of New Hope this 24th day of July, 1995.
Edw. d. Erickson, President
Attest:
Daniel d. Donahue, Executive Director
Com~zcx & SOND~L, P.A.
STEVENA. SONDRALL ATTORNEYS AT LAW
M~CH~EL R. L~r'EUR Edinburgh Executive Office Plaza ~VON.E ~. KESK~
MARTIN P. MALECHA SHARON ~. DEREY
WILLIAM C. STRAIT 8525 Edi1'lbl'ook Crossing
Suite #203 ·
Brooklyn Park, Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 425-5867
July 13, 1995
Mr. Daniel J. McGraw, President
Gill Bros. Funeral Chapel, Znc.
5801 Lyndale Avenue South
Minneapolis, MN 55419
RE: Exclusive Negotiation Agreement for Property at
42nd Avenue and Nevada Avenue North in New Hope, MN
Our File No: 99.11141
Dear Mr. McGraw:
This letter is in follow up to our July 11, 1995 meeting. Please
find enclosed an Exclusive Negotiations Agreement relating to the
property located at 42nd Avenue and Nevada Avenue North in the City
of New Hope for your proposed funeral chapel.
Basically, the Agreement will provide your corporation with the
exclusive right to negotiate a Development Contract with the City
for 'the property over the next 90 days. Essentially, it lays out
our respective rights and obligations during that 90 day period and
indicates if an agreement cannot be reached, the obligations of
each party under the Agreement will terminate and neither party
shall incur any obligation to the other in such event. (Please
refer to paragraph 3).
Pl'ease execute the Agreement and return to Kirk McDonald at the
City of New Hope. The Agreement then will be considered by the New
Hope Economic Development Authority at its July 24, 1995 meeting.
Also coordinate with Kirk your appearance at the meeting and what
will be expected of you by way of presentation on the project.
Call me if you have any questions regarding the Agreement. I will
be out of town during the week of July 17th, but Martin Malecha
Mr. Daniel J. McGraw, President
July 13, 1995
Page 2
from my office will be able to help you with any questions
regarding the Agreement.
Very truly yours,
Steven A. Sondrall
New Hope City Attorney
slt
Enclosures
cc: Kirk McDonald, Management Asst.
Daniel J. Donahue, City Manager
Valerie Leone, City Clerk
ps: Kirk, also attached to your letter is a proposed EDA
Resolution for consideration at the July 24, 1995 meeting
adopting the Exclusive Negotiations Agreement and
authorizing the President and Executive Director to
sign same. SAS
FUNERAL CHAPELS, INC.
July 19. 1995
Mr. Kirk McDonald
c/o The City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE: Exclusive Negotiation Agreement for Property at 42nd
Avenue & Nevada Avenue North in New Hope. MN
Dear Mr. McDonald~
Please find enclosed the signed copy of the Exclusive
Negotiation Agreement that I signed and faxed to you today.
I had planned to be on vacation the week of July 24, so if
you feel it is necessary for me to be at the EDA meeting
that day please call me as soon as possible and I or Neil
McGraw wil! attend.
Gill Brothers Funeral Chapels, Inc. looks forward to working
with you and the rest of the staff at the City of New Hope.
Daniel J. McGraw, President ~
Gill Brothers Funeral Chapels, Inc.
EXECU'T1VE OFFICE
SOUTHVVEST CHAPEL BLOOMINGTON. RICHFIELD CHAPEL
5801 LYNDALE AVENUE SOUTH, MINNEAPOUS, MN 55419 9947 LYNDALE AVENUE SOUTH, MINNEAPOLIS, MN 55420
(612) 861.6088 (612) 888.7771
GILL BROTHERS FUNERAL CHAPEL, INC.
EXCLUSIVE NEGOTIATIONS AGREEMENT
THIS AGREEMENT dated this day of /~ j'~/y 1995, by and
between the ECONOMIC DEVELOPMENT AUTHORITY IN AND F~R THE C[TY OF
NEW HOPE, a Minnesota municipal corporation (hereinafter "EDA"),
and GILL BROTHERS FUNERAL CHAPEL, INC., a Minnesota corporation
(hereinafter "Developer");
WITNESSETH;
WHEREAS, the EDA desires to promote development within the
established Development District No. 85-2 consistent with the
Development District Program and Tax Increment Financing Plan
adopted by .the Housing and Redevelopment Authority in and for the
City of New Hope on December 23, 1985, and as thereafter amended:
and
WHEREAS, on June 21, 1995, the Developer submitted to the EDA
a written proposal for development of an area ("Project Site") of
Development District No. 85-2; and
WHEREAS, the Developer's proposal, as it may be further
amended or supplemented (hereinafter "Project"), contemplates
construction of a two story colonial style funeral chapel or the
project site, the approximate boundaries of which are set forth in
Exhibit A attached hereto; and
WHEREAS, the Project has been reviewed by staff who have
favorably recommended to the EDA that the Developer be designated
to develop the Project Site; and
WHEREAS, the EDA has reviewed the Project and concurs that the
Developer should be designated to develop the Project Site, under
such terms and conditions as may be established by further
negotiations during the term of this Agreement between the Parties;
and
WHEREAS, the EDA and the Developer (hereinafter referred to
jointly as the "Parties"), are willing and desirous to undertake
development of the Project; provided that:
(a) satisfactory agreements can hereafter be reached
from time to time between the Parties for Developer's purchase
or other acquisition from the EDA of the Project Site;
(b) a satisfactory agreement can hereafter be reached
between the Parties to establish the level of public
improvements to be provided by the EDA for the project;
(c) the Developer can secure satisfactory financing
sufficient for the portions of the Project to be undertaken by
it;
(d) a satisfactory agreement can hereafter be reached
between the Parties to establish the level of public
assistance, if any, to be provided to the Project;
(e) the EDA is satisfied that the Project is
economically feasible and in the best interest of the public,
NOW, THEREFORE, in consideration of the mutual covenants of
the Parties hereto, IT IS AGREED between the Parties as follows:
1. During the term of this Agreement, or any mutually agreed
extension thereof, the Parties shall use all reasonable effort to
attempt to negotiate and formulate a definitive development
contract which shall provide for the development of the Project and
shall, at a minimum, contain the following:
(a) Terms and conditions, including timing, upon which
the EDA will sell to the Developer such lands within the
Project Site as may be necessary for the Developer to
undertake and complete the Project.
(b) Terms and conditions concerning the scope and timing.
of construction of the Project by the Developer and of any
public improvements to be constructed in connection with the
Project.
(c) A statement of the nature and amount of any security
to be furnished to the EDA to protect the EDA's financial
investment in the Project before and after completion of the
Project.
(d) Such other terms and conditions as may be agreed
upon by the Parties.
2. It is the intention of the Parties that this Agreement:
(a) shall document the present understandings and
commitments of the Parties; and
(b) shall lead to negotiation and execution of a
mutually satisfactory Development Contract for the Project
prior to the termination date of this Agreement.
Said Development Contract (together with any other agreements
entered into between the Parties hereto contemporaneous therewith),
when executed, shall supersede all obligations of the Parties
hereunder and constitute the entire agreement between the Parties
hereto.
3. Unless otherwise extended by written agreement between
the Parties, negotiations hereunder shall continue for a period of
90 days following execution hereof. The Developer may extend the
term of this. Agreement for an additional 30 days by giving written
notice of its desire to so extend the Agreement to the EDA within
the initial 90 day period; provided, that the Agreement will be
extended only if the EDA reasonably finds that the Developer has
diligently undertaken and pursued its obligations under this
Agreement. If a Development Contract for the Project is not
satisfactorily negotiated and executed within the period of this
Agreement, as the same may be extended, the obligations of either
party to one another shall terminate and neither shall incur any
obligation to the other, neither at law or in equity.
4. During the term of this Agreement, the Developer shall:
(a) provide to the EDA, within 60 days of execution of
this Agreement, a preliminary design proposal and a cost
analysis projection for the design and construction of the
Project. The proposal shall show the location, size, and
nature of the Project, including floor layouts, outline
specifications and other graphic or written explanations of
the Project, shall be accompanied by a time schedule for all
phases of development, and shall show and be compatible with
any public improvements to be constructed adjacent to or as
part of the Project, including the public improvements
contained in the Development District Program;
(b} undertake and obtain such other preliminary economic
feasibility studies, income and expense projections and such
other economic information which can be prepared by the
developer or market consultants as may be reasonably required
by the EDA to confirm the economic feasibility and soundness
of the project;
(c) within 60 days of execution, submit to the £DA for
review a Project financing plan which shows the Developer's
ability to finance the Project including evidence as may be
reasonably required by the EDA to demonstrate that the Project
will be economically successful and that the EDA's investment
will be protected, provided same can be prepared by Developer;
{d} furnish to the EDA such information or documentation
as may be required by the EDA to identify the legal entity
constituting the Developer, the identity of the Developer's
principal owners and the legal relationships of such principal
owners;
(e) furnish to the EDA or its designated financial
consultant such information as the EDA may reasonably request.
However, Developer will not be required to make Financial
Statemepts available on individuals or privately held
companies owned or controlled by Developer. If final developer
is not a signatory to this agreement, the preceding sentence
is void.
5. During this period of this Agreement, the EDA shall,
concurrently with the Developer's performance described in
paragraph 5 herein:
(a) develop a financial plan for the EDA's
participation, if any, in the Project and construction of
associated public improvements, which plan shall document all
public costs, projected public revenues, and bond financing
(including debt service) costs;
(b) reasonably cooperate with the Developer in meeting
the Developer's obligations hereunder; and
(c) nothing contained herein shall supersede the
obligations of the EDA or the developer contained in any
future agreement regarding so-called tax increment financing.
6. It is expressly understood that the subsequent execution'
and implementation of a Development Contract between the Parties
shall be subject to:
(a) the EDA's informed judgment that its undertakings
thereunder are feasible based upon estimated tax increment
revenues and are consistent with the purposes and objectives
of the Development District Program;
(b) the Developer's determination that the agreed upon
real estate tax level on the Project Site will not unduly
burden the economic feasibility of the Project;
(c) the determination that an adequate time schedule to
govern their respective undertaking may be agreed upon between
the Parties; and
(d) the'determination by both Parties, in light of all
the facts and circumstances, that undertaking of the Project
is in the best interest of both Parties.
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF NEW HOPE
By:
Edward J. Erickson
Its President
By:
Daniel J. Donahue
Its Executive Director
GILL BRO/T~ERS FUNERAL CHAPEL, INC.
By: -- -
DanielCd. McGraw
Its President
c:\ wp51\cnh\ ~ill.agr
4401 Xylon Avenue North City Hall: 612-531-5100 City Hall F~x: 6!2.531-5736
,Yew Hope. Minnesota 55428-4898 Po/ice: 612-531-5170 Poi~ce Fax.. 612-53~.5174
Public FCorks: 612-533-4823 Public Works Fax: 612-533-7650
TDD: 612-531-5109 Fire Dep't. Fax: 612-531.5175
June 30, 1995
Mr. Daniel McGraw, President & Mr. Gary Verkinnes, Vice President
Gill Brothers Funeral Chapels, Inc. Miller Funeral Home Design & Construction
5801 Lyndale Avenue South 335 West St. Germain
Minneapolis, MN 55419 P.O. Box 1228
St. Cloud, MN 56302
Subject: Purchase Agreement Submitted for City-Owned Property at 42nd/Nevada Avenues in New Hope
Gentlemen:
As you are aware, the New Hope Economic Development Authority considered the purchase agreemen'~ '
submitted by Gill Brothers Funeral Chapels, Inc. for the City-owned property at 42nd and Nevada Avenues
at their June 26th meeting. The EDA indicated that they were interested in your proposal and directed staff
to continue to work with you. Specifically, the EDA would like to see more detailed plans and would like
you to address the curb-cut issues on 42nd Avenue with Hennepin County. The EDA also wants to better
define the type of financial assistance you desire. The amount, rate and terms of a low or no interest loan
need to be determined.
I would request that you contact me (531-5119) so that I can coordinate a meeting between yourselves and
the New Hope City Attorney and the Director of Finance so we can clarify some of these issues. If
possible, I would hope to have these issues better defined so that the EDA could formally consider your
request on July 24th.
The City'is looking forward to worlcing with you and I will coordinate a meeting when you make me aware
of possible dates/times that you can meet.
Sincerely,~
' .'. :% 6'
Kirk McDonald
Management Assistant/
Community Development Coordinator
cc: Dan Dona.hue, City Manager Valerie Leone, City Clerk
Steve Sondrall, City Attorney Ray Pratt, Ackerberg Group
.Larry Watts, Director of Finance Improvement Project File #523
Doug Sandstad, Building Official
Family Styled City ~'.'~t.t ~/,j~'K For Family Living
GILL BROTUE
GILL BROTHERS fUItERAL HO/~E