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081495 EDA - Official File Copy CITY OF NEW HOPE EDA AGENDA EDA Regular Meeting #12 August 14, 1995 Agenda//13 President Edward J. Ericlcs'on Commissioner W. Peter Enck Commissioner Pat LaVine Norby Commissioner Gerald Otten Commissioner Terri Wehling I. Call to Order 2. Roll Call 3. Approval of Minutes of July 24, 1995 4. Discussion Regarding Relocation Assistance Requirements for Bass Lake Road Extension Housing Redevelopment Project (Improvement Project No. 541) 5. Resolution Authorizing the Purchase of 5559 Sumter Avenue North (Improvement Project No. 541) 6. 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) 7. Public Hearing - Resolution Authorizing and Approving the Sale of 7901 51st Avenue North to Carey A. Luckeroth (Improvement Project No. 505) 8. Resolution Approving Change Order for Construction Contract for 7901-7909 51st Avenue North (Improvement Project No. 505) 9. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes July 24, 1995 Meeting #11 CALL TO ORDER President Erickson called the meeting of the Economic Development Authority to order at 9:21 p.m. ROLL CALL Present: Erickson, Enck, Otten, LaVine Norby, Wehling Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Beilefuil APPROVE MINUTES Motion was made by Commissioner Norby, seconded by Commissioner Enck, to approve the EDA minutes of dune 26, 1995. All present voted in favor. Motion carried. MARKET STUDY President Erickson introduced for discussion Item 4, Discussion Regarding Item 4 Market Study Proposal for Winnetka Shopping Center by Northwest Associated Consultants, Inc. in the Amount of $9,500. Mr. Daniel Donahue, City Manager, reported that the City has already received a $4,750 check from Building Management, Inc., managers of the Winnetka Shopping Center. Commissioner Enck explained that he will be voting against this item because he does not feel the City should contribute funding of a survey which should be the responsibility of the commercial property owner. Commissioners Norby indicated an important part of the survey will be determining appropriate types of businesses for the shopping center. Commissioner Otten directed staff to verify that the survey will include surveying the existing tenants at the Winnetka Shopping Center. Mr. Donahue stated he believes the survey will include this service. He noted that he offered utilization of City Hall for meeting space. MOTION Motion was made by Commissioner Otten, seconded by Commissioner Item 4 Wehling, authorizing the market study proposal for Winnetka Shopping Center by Northwest Associated Consultants in the amount of $9,500. Voting in favor: Erickson, Norby, Wehling, Otten; Voting against: Enck; Abstained: None. Motion carried. IMP. PROJECT 541 President Erickson introduced for discussion Item 5, Motion Accepting Item 5 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). MOTION Motion was made by Commissioner Otten, seconded by Commissioner Item 5 Norby, 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). All present voted New Hope EDA July 24, 1995 Page 1 in favor. Motion carried. INotation: Item 5 was reconsidered later in meeting). IMP. PROJECT 541 President Erickson introduced for discussion Item 6, Resolution Authorizing Item 6 the Purchase of 5559 Sumter Avenue North (Improvement Project No. 541). MOTION Motion was made by Commissioner Enck, seconded by Commissioner Item 6 Wehling, adopting the resolution authorizing the purchase of 5559 Sumter Avenue North (Improvement Project No. 541). All present voted in favor. Motion carried. (Notation: Item 6 was reconsidered later in meeting). IMP. PROJECT 541 President Ericks0n introduced for discussion Item 7, Motion Approving Item 7 Quote Submitted by Evergreen Land Services Company for Relocation Services for the Bass Lake Road Redevelopment Project (Improvement Project No. 541). Mr. Steve Sondrall, City Attorney, explained that the Uniform Relocation Act requires governments to provide relocation assistance when properties are cited for a specific development motivation. The EDA questioned whether there are exceptions to the relocation law since the property owners requested the City to purchase their properties. Mr. Sondrall reported that despite this fact the City is obligated to follow the guidelines outlined in the Uniform Relocation Act. He reviewed various forms of assistance such as assisting property owners to find comparable living quarters within the area and paying potential moving expenses. The EDA expressed concern regarding its exposure and financial obligations in paying relocation costs in addition to property acquisition costs. MOTION Motion was made by Commissioner Enck, seconded by Commissioner Item 7 Wehling, to approve the $55/hour quote submitted by Evergreen Land Services Company for relocation services for the Bass Lake Road Housing Redevelopment Project and to provide an initial report of estimated costs of the project. All present voted in favor. Motion carried. IMP. PROJECT 505 President Erickson introduced for discussion Item 8, Motion Approving Item 8 Quote from Wrobleski's Lawn Service in the Amount of $8,300.60 for the Landscaping for Property at 7901/7909 51 st Avenue North (Improvement Project 541 ). MOTION Motion was made by Commissioner Wehling, seconded by Commissioner Item 8 Enck, to approve quote from Wrobleski's Lawn Service in the amount of $8,300.60 for the landscaping for property at 790117909 51st Avenue North. Voting in favor: Erickson, Enck, Wehling, Otten; Voting against: Norby; Abstained: None. Motion carried. IMP. PROJECT 505 President Erickson introduced for discussion Item 9, Resolution Authorizing Item 9 Publication of Notice and Holding a Public Hearing Regarding Sale of 7901 51st Avenue North (Improvement Project 505). New Hope EDA July 24, 1995 Page 2 EDA RESOLUTION Commissioner Wehling ~int~oduced the following resolution and moved its 95-13 adoPtion: "RESOLUTION AUTHORIZlN~ PUBLICATION OF NOTICE AND HOLDING OF A PUBLIC HEARING REGARDING SALE OF 7901 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 adopted~ signed by the president which was attested to by the executive director. MCPP APPLICATION President Erickson introduced for discussion Item 10, Request Approval of Item 10 the Minnesota City Participation Program (MCPP) Application Commitment Agreement for Participation in the Minnesota City Participation Program. MOTION Motion was made by Commissioner Wehling, seconded by Commissioner Item 10 Enck, to approve participation in the Minnesota City Participation Program. Ail present voted in favor. Motion carried. IMP. PROJECT 523 President Erickson introduced for discussion Item 11, Resolution Approving Item 11 Gill Brothers Funeral Chapel, Inc. Exclusive Negotiations Agreement and Authorizing the President and Executive Director to Sign (Improvement ProJect No. 523). Commissioner Norby inquired of the City's commitment based on this agreement. Mr. Donahue explained that the agreement provides Gill Brothers Funeral Chapel, Inc. the exclusive right to negotiate a development contract with. the City for the 42nd/Nevada Avenue property over the next 90-day period. The City agrees not to market the property for 90 days. Commissioner Norby requested information regarding the practice/policy held by the City of giving Iow-interest loans to profit businesses who are not already established in our community. She pointed out that Gill Brothers Funeral Chapel is well established and she has great concerns regarding their need for a Iow-interest loan when the City has already discounted the property significantly based on the appraised value. President Erickson commented that due to the shape and size of the property it is not very marketable and the City may have to offer incentives for its development. He explained that the City will recoup the funds through property taxes. Commissioner Norby indicated the potential property owner should be made aware that the selling price has already been reduced and perhaps the City should reconsider the Iow-interest loan. She als0 expressed concern regarding funeral processions on 42nd Avenue and the impact on traffic flow. Mr. Sondrall clarified that the City has not accepted the purchase agreement. EDA RESOLUTION Commissioner Wehling introduced the following resolution and moved its 95-14 adoption: "RESOLUTION APPROVING GILL BROTHERS FUNERAL New Hope EDA July 24, 1995 Page 3 Item 11 CHAPEL, INC. EXCLUSIVE NEGOTIATIONS AGREEMENT AND AUTHORIZING THE PRESIDENT AND EXECUTIVE DIRECTOR TO SIGN (IMPROVEMENT PROJECT NO. 523)". 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, Norby, Wehling; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. AMENDMENT Motion was made by Commissioner Enck, seconded by Commissioner Otten, to reconsider Items 5 and 6. All present voted in favor. Motion carried. ITEMS 5 & 6 Motion was made by Commissioner Enck, seconded by Commissioner Otten, to table Items 5 and 6 until August 14, 1995, which will allow the EDA to review financial obligations under the Uniform Relocation Act. All present voted in favor. Motion carried. ADJOURNMENT Motion was made by Commissioner Wehling, seconded by Commissioner Norby, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:50 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Jul,/24, 1995 Page 4 _ [ EDA ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA 8-14-95 Kirk McDonald v'~ Item No. By: Management Assistant By:// DISCUSSION REGARDING RELOCATIOI~_ ASSISTANCE REQUIREMENTS FOR BASS LAKE ROAD EXTENSION HOUSING REDEVELOPMENT PROJECT (IMPROVEMENT PROJECT NO. 541) At the July 24th EDA meeting, the EDA tabled action on the purchase of 5559 Sumter Avenue North and on authorizing staff to proceed to negotiate with two other property owners, pending further information being presented regarding relocation assistance requirements and relocation cost estimates for this project. At the same meeting, the EDA authorized the hiring of a relocation assistance consultant, Evergreen Land Services Company, and requested that an estimate of relocation costs for this project be prepared. Attached for discussion purposes are the following three items: 1. Correspondence from the City Attorney explaining why the City must comply with the Uniform Relocation Act. 2. Cost estimate from Evergreen Land Services for relocation costs and a description of the benefits which must be provided. 3. Excerpts from the initial report prepared by Northwest Associated Consultants on this project, which included costs for relocation assistance as part of the total project budget. The City Attorney indicates that Minnesota Statutes requires a condemning authority to pay relocation assistance to displaced property owners and tenants regardless of the fact that acquisition is by negotiation and not condemnation. The statutes state that all acquisitions by condemning authorities are subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act. Waivers of relocation benefits are not applicable to acquisitions in development districts. The act does indicate that voluntary transactions are exempt from payment of relocation benefits if: MOTION BY t_~~ SECOND BY ~ TO: ¢C_ZZ /7757. Review: Administration: Finance: I RFA-O01 ~ Request for Action 2 8-14-95 · the development area subject to acquisition is not site specific. · the property cannot be part of an intended/planned project area where all/substantially all of the property in the area will be acquired within specific time limits. · the agency will not acquire the property if an amicable agreement cannot be negotiated. · the agency informs the owner of the fair market value of the property. The Bass Lake Road project does not meet all of these conditions, as it is site specific and is part of a planned project area. The City Attorney concludes that the EDA's acquisition process is subject to the Relocation Act. Evergreen Land Services has prepared an estimate of possible relocation costs for the 12 parcels located in the project area. The estimate is based on the following types of benefits which the project area occupants may be entitled to receive: · Moving Expenses: actual documented costs or a fixed payment · Replacement Housing Costs for a Homeowner/Occupant: Three possible benefits: a) housing cost differential b) increased mortgage interest c) closing costs on new home · Replacement Housing Benefits for Tenants: Two possible benefits: a) rental assistance b) downpayment assistance (These benefits are explained in the consultant's letter.) Evergreen has estimated that the total relocation costs for the 12 parcels in the project area could range from $260,000 to $300,000. The wide range of estimated costs is due to a number of variables, including the extended time period for the acquisitions, the purchase prices of the homes to be acquired, and the uncertainty of future comparable housing prices. These estimated costs are very similar to what was projected in the NAC report. Northwest Associated Consultants estimated a total project cost for the acquisition, relocation, demolition, subdivision and public improvements of $1,327,250 (excluding the Alanon site). Of this estimate, $250,000 was projected for relocation expenses. Staff requests that the EDA provide direction on how they want staff to proceed with this project. CORRICK & SONDRALL, P.A. STEV;N A. SONORALL ATTOR~'~EYS AT LAW MICHAfL R. LAFLEUR MA,T,,, M~LECHA Edinburgh Executive Office Plaza WILLIAM C. STRAIT 8525 Edinbrook Crossing Suite #203 Brooklyn Parlt, Minnesota 55443 TELEPHONE (612) 425-5671 FAX (612) 425-5867 August 9, 1995 Mr. Kirk McDonald Management Assistant City of New Hope 4401Xylon Avenue North New Hope, MN 55428 RE: Bass Lake Road Extension Property Acquisition/Relocation Assistance Requirement Our File No: 99.29431 Dear Kirk: This letter is in follow up to our recent meeting with the Relocation Specialist regarding our obligation to provide relocation assistance to the property owners and tenants in the Bass Lake Extension Development Area. Basically, the City Council has asked the question why we are obligated to 'pay relocation assistance when the property owners are requesting the City by direct negotiation to acquire their property without the use of our eminent domain power? Basically, Minn. Stat. §§117.50 through 117.521 are controlling. These sections require a condemning authority to pay relocation assistance to displaced property owners and tenants regardless of the fact the acquisition is by negotiation and not condemnation. Specifically, §117.50(4)(b) defines acquisition to include acquisition by negotiation. Minn. Stat. §117.52(1) states that all acquisitions by condemning authorities are subject to the Uniform Relocation Assistance and Real Property Acquisition Policies Act. Minn. Stat §117.521 does indicate relocation benefits can be waived in certain situations, however subd. 3 of this section holds the waivers are not applicable to acquisitions in development districts authorized under MAnn. Stat. Chap. 462. Basically, our proposed acquisitions in the Bass Lake Road Extension Development Area are authorized by Minn. Stat. Chap. 462 and as a result, by law, we cannot enforce nor should we attempt to request relocation benefit waivers. Mr. Kirk McDonald August 9, 1995 Page 2 Also, our current objective is to acquire these properties with tax increment financing dollars. However, it is possible that CDBG funds may be used in the future for property acquisition. As you know, CDBG funds are federal dollars administered by Hennepin County. Any use of CDBG funds or other federal dollars would subject us to the use of the Uniform Act regardless. §24.101 of the Uniform Act does indicate voluntary transactions are exempt from payment of relocation benefits if certain conditions are met. Those conditions are as follows: 1. The development area subject to acquisition must not be site specific. 2. The acquired property cannot be part of an intended, planned or designated project area where all or substantially all of the property within the area will be acquired within specific time limits. 3. The agency will not acquire the property in the event negotiations fail to result in an amicable agreement. 4. The agency will inform the owner of what it believes to be the fair market value of the property. Unfortunately, our program for the Bass Lake Area does not meet all of these conditions. The area is site specific limited to 12 properties designated on our plan. Also, the properties we intend to acquire are part of an intended, planned and designated project area. Nor can we rule out our intent to acquire properties by condemnation especially in the later stages of the assemblage process when one or two "holdouts" could be preventing us from acquiring the properties necessary for plan implementation. Basically, this voluntary transaction language under the Uniform Act exempts property acquisition on a "scattered site" basis which is not the case for the Bass Lake Extension Development Area. I have also consulted with relocation experts with Hennepin County that deal with this issue on a daily basis. The County has confirmed my suspicion that has now evolved into my opinion that our acquisition process is subject to the federal Uniform Relocation Assistance Act. Mr. Kirk McDonald August 9, 1995 Page 3 Please contact me if you have any questions regarding the applicability of this Act and our requirement to pay relocation benefits to the people whose property are being acquired. Very truly yours, Steven A. Sondrall slw3 Enclosures cc: Daniel J. Donahue, City Manager (w/enc) Valerie Leone, City Clerk (w/enc) /oDfltle A (10-1-94 OffiCe ~ tt~e So. reran/o~ Tran~~ ~ ~. 101 ~ve Order 1~ ~l co~Ider ~ wmt~en ~p~l re~r4- an~e ~n ~ny ~rt ~ pro;~,:~ uo~t~ .)r~lnation of F~lr Hot le~ of fo~. For 'rogr~s. (c) Tt~ limit Jar m~tmtm~ appeal. ~e { I) Volun~ry ~ransac~tons :~a~ mee~ ,:~ve Order I~G~ ~ency ~Y se[ a re~onaOle ~lme all of [he followmg conditions: :dna and Interference wll 11~ for ~ ~rson ~o file ~n ap~l. ~e ii) No 8~clflc si~e or pro~r~y n~ds dally Pro~ec~d Pro [im~ 1~ ah~l ual be le~ [h~ ~ co be ~qulred, ~hough the Agency ~ ~r [he ~mon receives w~n ~y liml~ i~8 segch for :, uogtgc~on of ~he Agency's de~r~nm- si~s [o a general geo~mp~c ~k~p~g ~d ~m. '., ~ion on ~he ~on'a cl~m. ~erm ~ Agency wishes ~o (~) Ri~i ~o r~e*~la~wn, A ~mon moro ~h~n one si~e wlghln m geo~ap~c ~. ~e Agency sh~l m~n- ~ ~ ~g~ to be repre~n~d by leg~ ~e~ on ~his b~is, ~11 owne~ ~e ~o be ~:e records of i~ acquisl~io~ co~el or other represeu~ive in con- ~rea~ 81mil~ly. ~cemea~ ~l~les in suffl- nec~lon wt~h his or her ~p~al. bu~ (ii) ~e pro~r%y %o be acquired is ;1 co demons:~:e comDli~ce solely ~ ~he ~rson's own ex~nse. ~t of ~ in~ended, planned, or des- ~. ~ese ~cor~ sh~l ~ ,~ ~ {e) ~ o/ fii~ ~ ~son ~Rmg a~ i~a~ed projec~ ~ea where ~11 or or a: le~ 3 ye~ after e~h ~. { peal ~e Agency shall ~r~ · ~on stan~l~ly ~11 of ~he pro~rSy wi~n z pro~rcy and each ~on :o l~c~ ~nd copy ~tl ma~m~is ~r%l- %he ~ea Is ~o be ~cquired w~n from ~he pro~r~y receives ~j~' nen~ ~o h~s or her ap~zl, excep~ ~e-. ciflc ~lme liml:s. ~aymen~ ~o which he or she is ~. ~ which ~e cl~fled ~ conflden- (iii) ~e Agency will no~ ~q~re ~nder ~s ~:, or in ~co~- :i~ by the Agency. ~e Agency may, pro~rty in ~he even~ nego~lz~io~ f~l a ~he applicable re.la,ions of ,. ; however, ~m~se re~onabie con~lo~ ~o resul~ in an ~i~ble ~eemen:, .r~l fun~ng ~ency, walchever ~ on ~he ~on's mgh~ co ms.cu, con- ~d ~he owner is so info.ed in ~ ~s~ wi~h applicable laws tug. nfid~i~aliiV of record. Recor~ (D Yco~e o/rem~ of a~eal, In decid- (iv) ~e Agency will info~ ned by an Agency in ~cco~- { ing ~ ~D~l, ~he Agency shall con- owner of wh~ i~ believes uo be ~he f~r ~h :his p~ ~e confiden:lai r~ , s{der ~1 ~r%men: ]ua~lficacmn and ~e~ v~ue of :he Dro~r~y. c~eir use ~ public info~, o~her mauemal submitted by ~he ~r- (2) Acquimi~lo~ for pro~s or nless a~licable law provides son, ~d ~11 o~her ~v~ilable mfo~- pro}ec~ under~en by an Agency or .se. ~ion ~ ~s needed ~o ensure a f~r ~d ~o~ ~ receives Feder~ flnancl~ ~o~ts. ~e Agency shall sub~ full review of uhe ap~al. ~is~ce bu~ does no~ ~ve t of its re~ Dro~r~y ~cquisi~ion ~g; Del~matwn and not~ficatw~ ~ft~ ~o ~q~re pro~rty Dy eminen~ ~o- placemen~ ac~lvl~le~ un,er ~ ~l. Promptly after recelDu of ~1 in- ~n, provided ~h~ such Agency or reqmred by ~he Federal agency fox,ion su~mit~ed by a ~on in · the Dro~ec:. A revor~ will ~o~ 8uv~r~ of an ~D~. ~he Agency s~l (l) ~or ~o ma~ing an offer for ired more frequenMy ~han eve~ ma~e a wmu~en deuermin~iou on ~e ~rty, cle~iy ~vme ~he owner ~. or ~ ~he Uniform Ac~ pr~ ap~. includmg ~n exvlana~ion of ~he i~ is ~abie ~o ~cq~re ~he pro~rsy mless [he Federal funding ~e~- b~ls on w~ch ~he decision w~ m~e. ~he even~ negotiations f~l :o resul~ vs good cause. ~e re~r~ s~l ~nd fu~lsh ~e ~rson a copy. if ~he an ~lczDle ~eemen~; and ~ed an~ suOml~ed m ~he for- full relief requesued m no~ gr~n~ed. ~he (ii; Info~ ~he owner of wha~ ~: n~amed m ~pendix B of :~s Agency s~ail adwse ~he ~on of his or lieves ~o ~ fair m~et value of her right ~o see~ ludicial review. Dro~r~y. ih) Ag~ of Iic~al to ~ a~eai. (3) ~e ~cquisl~ion of real pro~r%y Ap~. ~e Agency official conducting ~he re- from a Feder~ agency, S~:e, or ~al. ~e Agency shall promv~- mew of :he ~D~I shall be either ~he ~ency, if ~he Agency demi~ng ~o ma~e ew ap~ais in accordance wi~h he~ of ~he Agency or his or her ~- ~he p~ch~e does no~ have mu~ho~y uiremen~ of applicable law ~d ~ho~zed desi~ee. However. ~he offlci~ ~o acquire ~he pro~r~y ~hrough con- .c, sh~l no~ have been direcMy involved in dens,Ion. ciwus w&~ch ~y 5e ~p~led. ~he action ~aled. (4) ~e ~cqui~i~lon of real pro~r:y ~eved ~on m~y file a ~ by · coo~ive from a ~on who, esl with ~he Agency in any ~ SM~ ~ ~O~ a cohesion of membership in ~he coo~ :{j :~ the ~rson believes fha, ,h. Acquis~io, er,,ive. ~ ~reed ,o provide wi,hen, h~ f~iled to pro~rly consider ch~e ~y re~i pro~rty th~ is ueed~ son's appli~tion for ~s~ce {~.101 Appli~bili~ of acq=~i~ioa ~ by the eoo~tve. ,,,{{..~is ~r~. Such ~sls~nce ~y q~meu~. (5) Acquisition for · pro~ or . but is not Iimi~d to. the ~r- (a) O~al. ~e requiremen~ of this p~jec~ which is under.ken by. or re- ig{bility for, or the ~oun~ of. sub~t apply ~o any acquisition of re~ ceives Federal financial ~sis~ce ~ent required under ~24.1~ or ~ro~rty for ~ Fede~l pro~ or from. the Tenne~ee V~Iey or a relocation paymen~ ~ v~iec~, and to prog~a and ~j~ or the R~ El~trlflc~blon under ~his ~t. ~e Agency whe~ there is Federal fl~ncial ~la~- tr~on. § 117.49 EMINENT DOMAIN der certain circumstances, the exercise of the corporations and associations. Laws 1971, c. power of eminent domain by certain persons, 884. Cross References Limitations on oil pipeline easements, see § 300.045. Library References Eminent Domain ~:,169. C.J.S. Eminent Domain § 222 et seq. 117.50. Definitions Subdivision 1. As used in sections 117.50 to 117.56, the terms defined in this section shall have the meanings given them. Subd. 2. "Person" means any individual, partnership, corporation, or association. Subd. 3. "Displaced person" means any person who. moves from real property, or moves personal property from real property, as a result of acquisition undertaken by an acquiring authority or as a result of voluntary rehabilitation carried out by a person pursuant to acquisition or as a conse- quence thereof. Subd. 4. "Acquisition" includes: (a) acquisition by eminent domain; (b) acquisition by negotiation; (c) programs of areawide systematic housing code enforcement; and (d) demolition. Subd. 5. "Acquiring authority" includes: (a) the state and every public and private body and agency thereof which has the power of eminent domain; and (b) any acquiring authority carrying out an areawide systematic housing code enforcement program. Laws 1973, c. 604, § 1. Amended by Laws 1986, c. 444. Notes of D~clsion~ 1. Acquisition of one dollar at end of lease period, authority Under sale and leaseback arrangement be- secured only such rights over property as were necessary to protect interests of bondholders tween hotel owner and city port authority, and had no power to possess hotel or to use it whereby authority obtained fee simple title to for its own purposes, and thus authority's pur- hotel, owner received authority's bond sale chase did not constitute "acquisition by negoti- proceeds for hotel renovation and authority ation" for purposes of state Uniform Reloca- contemporaneously leased hotel back to its for- tion Act (§ 117.50 et seq.). Gilliland v. Port met owner under 30-year lease with fee simple Authority of City of St. Paul, 1978, 270 N.W.2d title reverting to former owner upon payment 743. 117.51. Cooperation with federal authorities In all acquisitions undertaken by any acquiring authority and in all volun- tary rehabilitation carried out by a person pursuant to acquisition or as a consequence thereof, the acquiring authority shall cooperate to the fullest 684 3MAIN EMINENT DOMAIN § 1 17.52 1971, c. extent with federal departments and agencies, and it shall take all necessary action in order to insure, lo the maximum extent possible, federal financial participation in any and all phases of acquisition, including the provision of relocation assistance, services, payments and benefits to displaced persons. Laws 1973. c. 604. § 2. 117.52. Uniform relocation assistance Subdivision 1. Lack of federal funding. In all acquisitions undertaken by any acquiring authority and in all voluntary rehabilitation carried out by a person pursuant to acquisition or as a consequence thereof, in which, due to ?ined in the lack of federal financial participation, relocation assistance, services, payments and benefits under the Uniform Relocation Assistance and Real ~ion, or Property Acquisition Policies Act of 1970, 84 Stat. 1894 (1971), 42 United States Code, Section 4601, et seq., are not available, the acquiring authority, as ~m real a cost of acquisition, shall provide all relocation assistance, services, pay- ments and benefits required by the Uniform Relocation Assistance and Real esult of Property Acquisition Policies Act of 1970 and those regulations adopted )luntary pursuant thereto by the United States Department of Housing and Urban :~ conse- Development, in effect as of January 1, 1984. Subd. 2. Acquisitions for highway purposes. Despite subdivision 1, with respect to acquisitions for highway purposes or acquisitions for which the state department of transportation performs relocation assistance services for the department of administration, the regulations of the United States Depart- nd meat of Transportation may be applied to all displaced persons who would otherwise be eligible for such relocation assistance, services, payments and benefits thereunder but for the lack of federal financial participation. Subd. 3. Exception. This section shall not apply in the case where ff which federal financial participation for provision of relocation assistance, services, payments and benefits in connection with an acquisition has been procured housing or committed pursuant to section 117.51 and has then been withdrawn by the United States, unless the acquiring authority subsequent!y determines to proceed with the acquisition in question using nonfederal funds. Laws 1973, c. 604, § 3. Amended by Laws 1976, c. 166, § 7; Laws 1984, c. 633, § 1, eft. May 3, 1984. , authority -ty as were Historical Note mdholders ~r to use it Derivation: cry 1. 1984" at the end of subd. I and deleted ~rity's put- St. 1971. § 117.095. "as of the date of enactment of sections 117.50 by ncgoti- Laws 1971, c. 595, § 12. to 117.56" following "may be applied" in subd. m Reloca- The 1984 Amendment divided the section 2. nd v. Port into subdivisions, added "in effect as of Jehu- 70 N.W.2d Library Reference~ Eminent Domain ~,267. C.J.S. Municipal Corporations § 957. Municipal Corporations ~,224. C.J.S. United Slates § 122. Il volun- United States ~,82(3). (3.5). C.J.S. Wills § 107. or as a C.J.S. Eminent Domain § 395. e fullest 685 § 117.52 EMINENT DOMAIN Notes of Decisions 1, Taxes and therefore allocable to the year of assess- Although properly taxes are designated by ment for purposes of determining whether sell- the year in which they become payable, they er must be reimbursed for taxes paid prmr to relat~c to the year in which they are assessed sale to state. Op. Atty.Gen., 474-i, April 8, 1975. 117.521. Waiver of relocation benefits Subdivision 1. Any owner-occupant of property who (a) prior to any action by the acquiring authority indicating an intent to acquire the property whether or not the owner-occupant is willing to sell, requests that the property be acquired through negotiation, or (b) has clearly shown an intent to sell the property on the public market prior to any inquiry or action by the acquiring authority, may voluntarily waive' any relocation assistance, services, payments and benefits, for which eligible under this chapter by signing a waiver agreement specifically describing the type and amounts of relocation assistance, services, payments and benefits for which eligible, separately listing those being waived, and stating that the agreement is voluntary and not made under any threat of acquisition by eminent domain by the acquiring '. authority. Prior to execution of the waiver agreement by the owner-occu. pant, the acquiring authority shall explain the contents thereof to the owner- occupant. Any waiver not voluntarily agreed to is invalid, and the burden of proof shall be upon the acquiring authority to show that the agreement was entered into voluntarily. A statement at trial by a witness not involved in the acquisition of the property, that the contents of the waiver agreement were explained to the owner-occupant in a manner understandable to the owner- occupant, describing the method of explanation, that the owner-occupant appeared to understand the terms and conditions of the waiver agreement, that no express or implied threats of taking the property by eminent domain, or any other threats intended to induce the owner-occupant to waive reloca- tion assistance benefits, were made to the owner-occupant by any employee or official of the acquiring authority throughout the entire process of acquisi- tion of the property, and that the owner-occupant appeared to voluntarily enter into the agreement, shall, unless decided otherwise by the court, shift the burden of proof to the person claiming that the agreement was not entered into voluntarily. Subd. 2. The owner of a rental property whose property is being acquired through negotiation as a result of either subdivision 1, clause (a) or (b), may waive only the right to relocation assistance, services, payments and benefits as outlined in subdivision 1, and nonowner occupants of the property being acquired shall receive all relocation assistance, services, payments and bene- fits for which they are eligible, notwithstanding the provision of subdivision 1. Subd. 3. The provisions of subdivisions 1 and 2 shall not apply to the acquisition of properties situated wholly or in part within any district for development authorized under Laws 1971, chapter 548 or 677; or Laws 1973, 686 lAIN EMINENT DOMAIN § 117.55 chapter 196, 761. or 764; or Laws 1974, chapter 485; or Minnesota Statutes, ~,ssess- chapter 462, 458; or 458C. ,.r ~e~l- Subd. 4. The provisions of this section shall not limit any existing rights to ~'lOf tO · I975. waive relocation benefits. Laws 1976, c. 10, § I. Amended by Laws 1986, c. 400, § 2, elf. March 25, 1986; Laws 1986, c. 444, ~ction Hlstorleal Note .petty Laws 1986, c. 400, § 2, at the end of subd. 3 amended subd. 3 of this section in a manner t the added reference to §§ 458C.01 to 458C.23. identical to Laws 1986, c. 400, § 2. ,ntent Laws 1986, 1st Sp.. c. 3. art. 2, § 41 repealed ~y the Laws 1986, c. 399, art. 2, § 2 which had vices, Library References ~mg a Eminent Domain ~::,79. :ation C.J.S. Eminent Domain § 208. rarely id not Note~ of uiring I. Highways Relocation Assistance and Real Property Ac- -occu- Sufficient authorization is contained in Laws quisition Policies Act of 1970 (42 U.S.C.A. 1971, c. 595, (§ 117.011 et seq.) for department § 4601 et seq.). Op.Atty.Gen., $79a-$, June 18, ,wner- of highways to comply with federal Uniform 1971. proof ~tered All acquiring authorities are hereby authorized to do any acts and take all ~n the actions necessary to carry out the provisions of sections 117.50 to 117.56, ~ were including the acquisition, rehabilitation and relocation of existing housing )wner- and the construction of new housing in accordance with the provisions of the :upant Federal Aid Highway Act of 1970, 84 Stat. 1713 (1971), 23 United States Code, :ment, Section 101, et seq., and any other federal and state laws, where projects ~main, cannot proceed to construction because replacement housing cannot be made celoca- available. ployee cquisi- Laws 1973, c. 604, § 4. ntarily 117.84. No additional d~mages cremted t, shift as not Nothing in sections 117.50 to 117.56 shall be construed as creating in any condemnation proceedings brought by any acquiring authority under the power of eminent domain, an.y element of damages not recognized on August quired ,), may 22, 1968. ,enefits Laws 1973, c. 604, § / being ~ bene- 117.~. Payments not considered for public assistance purposes !ivision No payments received under sections 117.50 to 117.56 shall be considered for purposes of determining the eligibility or the exteni of eligibility of any to the person for public assistance based on need under the laws of the state of Act for Minnesota. 's 1973, Laws 1973, c. 604, § 6. Amended by Laws 1985, 1st Sp., c. 14, art. 1, § $. 9 M,S.A.--~ 687 E ,'ERC]REE LA D SERVICES CO. 6200 S~INGLE CREEK P ~,Rt. CW,aY. SUITE a15 · BROOKLYN CENTER, MN '55430 PH 6',2-566-'~036 · FAX 6':,2-566-681 ~ August 7, 1995 Ms. Sarah Belief-uR, Administrative Analyst .Mr. Kirk McDonald, Management Assistant City of New Hope 4401 Xylon Avenue N. New Hope, MN 55428 SUBJECT: Budgetary Estimate of Relocation Costs Bass Lake Road Redevelopment Project, #541 Dear Ms. Bellefuil and Mr. McDonald: At your request, we have prepared an estimate of possible relocation costs for the twelve single family home parcels located in the above-referenced project area. This cost estimate is based on information obtained from the City/County Assessor's files for the project properties, the Assessor's estimated market values for the properties, and data on currently available housing researched and identified through the iVfmneapolis Area Realtors Multiple Listing Service. This cost estimate considers the types of relocation assistance benefits which the project area occupants may be entitled to receive under the Uniform Relocation Act regulations, which have been adopted by Minnesota Statute for public agency acquisition projects. A brief, very general, description of these benefits is as follows: Moving Expenses. All residents (households) are entitled to thi~ benefit if they have personal property to be moved from the project home. This benefit is either: 1) reimbursement for actual, documented, reasonable and necessary costs of packing, moving, unpacking and reconnecting personal property transferred fi.om the project home to the replacement home, or 2) a fixed payment based upon the number of furnished "rooms" in the project home and the amount of personal property to be moved. The fixed payment is determined by applying a payment schedule issued by the Federal Highway Administration. Replacement Housing COsts for a Homeowner-Occupant. This includes payment of three possible benefits: 1) housing cost differential, 2) increased mortgage interest, and 3) incidental (closing) expenses on a replacement home. City of New Hope Page 2 August 7, 1995 The maximum housing cost diff'erential is determined by identifying the price of "comparable" replacement housing available at the time negotiations are initiated to purchase the project home. The actual cost differential is calculated based on the acquisition price of the project home versus the lesser of the actual replacement home price or the "comparable" home price. The increased mortgage interest benefit applies only if there is a bona-fide mortgage on the project home and the homeowner obtains a mortgage on the chosen replacement home which has an interest rate higher than the rate of the project mortgage (based on the mortgage market at the time of negotiations). The payment is computed based on the unpaid balance of the project mortgage and its remaining term or the new mortgage balance and term, whichever is less. Points required to be paid by the borrower/buyer are also compensable under this benefit, but are limited to the cost of points based on the project mortgage balance. The incidental expenses benefit relates to certain closing costs which an owner- occupant incurs in purchasing a replacement home. Examples of eligible incidental costs appraisal fees on the replacement home, credit report fees required by a lender, recording fees, title examination fees, and the costs of title insurance on the replacement home (limited to the amount which would be charged for the "comparable" home). Replacemeut Housing lleuefits for Tenauts. These benefits involve either: l) rental assistance if the tenant rents a replacement dwelling, or 2) downpayment assistance iftbe tenant purchases a replacement home. Again, the costs of "comparable" rental housing, available at the time negotiations are initiated, are identified and used to determine maximum benefits. In computing the amount of actual, eligible rental assistance benefits, the tenant's gross household income is considered along with the actual rent paid for the project and replacement homes. If the tenant chooses to purchase a replacement, the downpayment assistance is the amount which the tenant would receive if the "comparable" dwelling had been rented. Based on the above, then, we estimate that total relocation costs for the twelve parcels in this project area could range fi.om $260,000 to $300,000. This is a somewhat wide range of estimated costs. However, the many variables such as the extended time period for the acquisitions, the future values/purchase prices of the homes to be acquired, and the uncertainty of future comparable housing prices make this wide range necessary. City of New Hope Page 3 August 7, 1995 I am enclosing a Flow Chart entitled "Typical Relocation Process Under the Uniform Relocation Act" for your information. I hope that this budgetary estimate is helpful to you and to the City Council. Please don't hesitate to call if you have any questions or ifI can be further assistance. Sincerely, Director of Relocation Evergreen Land Services Company cc with enclosures: Steven A. Sondrall, New Hope City Attorney Typical Relocation Process,Under the Uniform Relocation Act* 1. 2. 3. 4. 5. . PLAN PROJECT PROJECT APPROVED INFORM PERSONS TO INTERVIEW PERSON TO WORK WITH PERSON BE DISPLACED BE DISPLACED TO BE DISPLACED · SET CLEAR GOALS. · ESTABLISH HOUSEHOLD: · ESTIMATE RELOCATION ORGANIZATION. · PROVIDE GENERAL · DETERMINE (OR UPDATEI · MAKE REFERRALS TO NEEDS. SUCH AS '· HIRE AND TRAIN STAFF. WRITTEN INFORMATION INDIVIDUAL NEEDS AND REPLACEMENT HOUSING DESCRIBING PAYMENTS, PREFERENCES. COMt~LETE ~ IF HOUSING (CONDUCT ~ · ESTABLISH MANAGEMENT ,~ ~ UNITS. FEASIBLE. DOOR*TO*DOOR SURVEY. CONTROL SYSTEM AND SERVICES AND SITE OCCUPANT RECORD. INSPECT UNITS BEFORE IF FEASIBLE). PROCEDURES FOR PROTECTIONS. ISEE ISEE §24.205Ic)I211i)) REFERRAL. (SEE · ESTIMATE COSTS AND COORDINATING 124.203ImI) · EXPLAIN AVAILABLE !24.205Ici(2)1ii)(B)). STAFFING NEEDS. RELOCATION WITH. · PROVIDE OFFICIAL NOTICE PAYMENTS AND ENSURE PERSON · HOLD PUBLIC HEARINGS. DISPLACEMENT CAUSING OF RELOCATION SERVICES. PERSON'S IS AWARE OF · DECIDE PLAN OF ACTION. ACTIVITY. ELIGIBILITY. IDENTIFY RIGHT TO COMPARABLE MAXIMUM REPLACEMENT · ESTABLISH COST AND LOCATION OF REPLACEMENT HOUSING HOUSING PAYMENT ANO {SEE § 24.205(cl) RECORDKEEPING COMPARABLE BEFORE DISPLACEMENT. BASIS FOR DETERMINING PROCEDURES. REPLACEMENT HOUSING. AND RELOCATION PAYMENT. ISEE (SEE t24.203(b)) PROCEDURES. ISEE 124.205(c)(2)(ii)(A)I ~24.205(c)(2)1i) AND Ii(Il · ENCOURAGE PERSON NOT · COUNSEL PERSON AND MAKE APPROPRIATE TO MOVE PREMATURELY. REFERRALS TO SOCIAL · EXPLAIN RENTAL POUCIES SERVICE AGENCIES. (SEE FOR SHORT TERM ~24.205Ic)(2)11vI) OCCUPANCY AFTER ACQUISITION. (SEE · ISSUE 90*DAY NOTICE. IF ~24.102(mi! NECESSARY. (SEE ~ 24.203(cI) BUSINESS PERSON: ....... · MAKE REFERRALS TO REPLACEMENT BUSINESS LOCATIONS. (SEE ! 24.205(c)(2)(iiiil 6. 7. 8, · PROVIDE INFORMATION, GUIDANCE AND PERSON CHOOSES REPLACEMENT PROCESS CLAIMS AND FOLLOW-UP TECHNICAL AID. (SEE ~ 24.2051c)I2)(ivl ANO Iv)l PROPERTY AND MOVES MAKE PAYMENTS · EVALUATE PROGRAM · INFORM PERSON TO SUCCESS (INCLUOE PROVIDE ADVANCE HOUSEHOLD: BUSINESS PERSON: · ASSIST PERSON IN FOLLOW-UP CONTACTS NOTICE OF MOVE TO · INSPECT UNIT BEFORE · UPON NOTIFICATION OF PREPARING AND FILING WITH PERSONS AGENCY. (SEE MOVE TO ENSURE IT IS MOVE. iNSPECT CLAIMISI. ISEE DISPLACEDI. DECENT. SAFE. AND PERSONAL PROPERTY AT §24.207Iai) 124.303lb)(2)) SANITARY. (SEE DISPLACEMENT SITE. (SEE ~ · REVIEW CLAIMS AND ~ ® IMPROVE PROCEDURES ® ISSUE 90*DAY NOTICE. IF § 24.205 Ic)12)(ii)(B)) ~ 24.303(b)I3)) PROMPTLY ISSUE FOR FUTURE. NECESSARY. (SEE · ISSUE ADVANCE · ISSUE ADVANCE PAYMENTS. (SEE · MAINTAIN RECORDS TO § 24.203(c)) PAYMENT WHEN NEEDED. PAYMENT WHEN NEEDED. ~24.207{b)l DEMONSTRATE [SEE §24.207lcl) ISEE ~24.2071c)) · DEAL WITH COMPLAINTS COMPLIANCE WITH LAW · INSPECT PERSONAL OUICKLY AND EOUITABLY. AND REGULATIONS. (SEE PROPERTY AT ASSIST IN PREPARATION ~ 24.91al) REPLACEMENT SITE TO OF APPEAL. AS ENSURE IT WAS MOVED. APPROPRIATE. (SEE ISEE ~ 24.303(b)(3)) ~24.10) ca - .. 'UNIFORM RELOCATION ACT REGULATIONS 149 CFR PART 24) m EFFECTIVE 4121B9 ort west ssociated Consultants, Inc. R B A P L A N N G D E S I G N M A R K E T R E S E A R C H PLANNING REPORT TO: Dan Donahue/Kirk McDonald FROM: Richard McLaugb.[in/Alan Bfixius DATE: 5 May 1995 RE: New Hope - Bass Lake Road Redevelopment Project FILE NO: 131.00 - 95.03 BACKGROUND The City of New Hope has established a Neighborhood Redevelopment Project Area at the comer of Bass/.ake Road and Sumter Avenue North. The project's purpose is to replace deteriorating housing stock and to replat over-sized and under-utilized lots. The intended result of this project is to improve the local neighborhood character, provide market rate housing, in the project area, and add value to the surrounding neighborhood. Attached for reference: Exhibit A - lh'oject Location Exhibit B - Study A~ea/Project Boundaries Exhibit C - F. xisting Topography Exhibit D - Property Identification Map Exhibit E - Property Profile Listing Exhibit F - Project Issues Map Exhibit G - Scheme l-A: Single Family - 13 Lots Exhibit I-I - Scheme I-B: Single Family - 14 Lots Exhibit I - Scheme 1: Affected Lots Exhibit $ - Scheme 2-A: Single Family - 15 Lots Exhibit K - Scheme 2-B: Single Family - 18 Lots Exhibit L - Scheme 2: Affected Lots Exhibit M - Scheme 3-A: Townhouse - 14 Lots/Single Family - 6 Lots 5775 Wayzata Blvd.. Suite 555 -St. Louis Park, MN 55416. (612) 595-9636-Fax. 595-9837 Exhibit N - Scheme 3-B: Townhouse - 19 Lots/Single Family - 6 Lots Exhibit O - Scheme 3: Affected Lots Exhibit P - Scheme 4-A: Townhouse - 24 Lots Exhibit Q - Scheme 4-B: Town. house - 29 Lots Exhibit R - Scheme 4: Affected Lots SITE CONTEXT A fundamental issue with regard to this redevelopment project is to improve the land and building utilization of this critical gateway into New Hope from the east (Exhibit A). The City has prepared a report which identifies the properties in the redevelopment project study area under consideration for acquisition, demolition and redevelopment. In review of this report, it becomes highly evident that there are several land use, zoning and/or building concerns associated with the existing condition of these properties. Redevelopment of individual properties to correct land use, zoning and/or building deficiencies would be extensive and would not resolve inherent problems with this area's growth. Particularly evident is that existing lot configurations of the identified properties are not conducive to efficient infrastructure access. (The City's property status report is referenced as an addendum to this report.) :. The Project Boundaries and Study Area Map (Exhibit B) describe the existing property locations and configurations being examined. The study area is del'reed by the frame, and the project boundaries are defined by the outline, enclosing the lots under consideration for acquisition and redevelopment. On the F,0dting Topography Map (Exhibit C), the lots under consideration are removed to reveal the underlying elevations. Generally, there is a gradual stepped slope to the southeastern comer of the site, indicating its natural drainage pattern. Individual properties are identified on the Property Identification Map (Exhibit D), and referenced to the Property Profile Listing (F.~thibit Reviewing the prof'fles of the eleven (11) principal properties under consideration, it becomes evident that these properties provide an opportunity for local area redevelopment. ISSUES IDENIllelCATION The Project Issues Map (F. xhibit F) locates particular areas of consideration in the design development of the project area redevelopment. Of significant importance are listed in sequence of their importance. 2 l. Rousing Condition. As described by the City's status report concerning the eleven properties, the condition of this housing stock is marginal. Most properties-have significant code violations inherent to their age as well as their level of maintenance and upgrades. 2. Lot Configuration. The lot configuration of all properties does not provide for an efficient use of the land. A reconfiguration of the lot structure to increase the efficiency of municipal service delivery, automobile access, and land use appropriate to the traffic characteristics of adjacent roadways would create lots having greater value to individual property owners, as well as to the City. 3. Bass Lake Road. Bass Lake Road is a minor arterial connecting several northwest suburban communities of the Twin Cities Metropolitan Area. As a function of its roadway classification, Bass Lake Road is more of a commercial corridor, and less desirable as a single family residential address. As traffic intensifies and volumes increase, the impact on the redevelopment site will become more significant. The building types and bufferi.ng between the roadway and the existing neighborhood southward must be such that the land values in this transition zone are retained. 4. Local Commercial Land Uses. Directly north of the project area, across Bass Lake Road, arc two business establishments. To the west of Sumter Avenue, behind the two residential lots closer to Bass Lake Road, is an under-sized commercial lot. These commercial properties raise compatibility issues with residential character of the project area and must be addressed in the redevelopment concepts. The traffic intensifies along Bass Lake Road are reflective of this type of Commercial activity. As a Component of the redevelopment plans, the acquisition of the two residential lots west of Sumter is proposed. This would expand the commercial acreage at this location. 5. Sumter Avenue/Bass Lake Road Intersection. This local intersection is jogged approximately 40 feet to the east at the Bass Lake Road intersection, resulting in an efficient and unsafe intersection design. In order to create an intersection which handles vehicular traffic and pedestrian crossings more efficiently and safely, the realignment of Sumter Avenue to the west is being considered in conjunction with the property redevelopment planning. 6. Alanon. The building which houses the Alanon services is a non-conforming use in a residential neighborhood. The facility has inadequate parking, is in marginal condition, and impacts the local neighborhood with occasional noise, traffic, and trash problems. The potential impact of this pmpen~ and its specific use on the existing neighborhood, as well as new development, may adversely affect property values. 3 7. St. Raphael's Church. The church has a large congregation and is a large semi-public land use in the area. A large open space behind the building appears contiguous to Elm Grove Park. 8. Elm Grove Park. The significance of this neighborhood park and the open spaces behind St. Raphael's as open space recreation areas, especially for children, cannot be ignored. Elm Grove Park in particular is a community amenity and its connections to neighborhoods adjacent to the project area are critical. As a City sponsored redevelopment project, this site should ensure physical connections are established such that the park is safe and convenient to use, and visually monitored by neighborhood residents. Taking into account these site specific issues, the fundamental planning issue is to coordinate a redevelopment strategy which utili?es the defined project site as a catalyst for increased investment and redevelopment throughout the local area. The principal function of a redevelopment program is to not only increase the value of the project area itself, but also surrounding properties such that the entire area becomes a functioning, valuable urban component of the City. CONCEPT DEVELOPM~NT Several concepts or design schemes were developed as a response to the issues identified and based on the following design parameters outlined by staff. Review of these schemes with regard to generali?ed planning motivations and construction feasibility isolated four which deserve further analysis. However, each scenario responds to the issues with common features. These design elements are listed as follows: 1. Establish a compatible land use relationship with existing residential neighborhood. 2. Promote residential development at value equal or greater than existing housing stock in the area. 3. Promote a variety of housing types and styles that provide for owner occupancy. 4. A seven foot dedication to the Bass lake Road right-of-way to provide opportunities for future roadway expansion, and pedestrian sidewalk construction between the roadway and the residential lots being developed. 5. A realignment of Sumter Avenue to provide a direct crossing of Bass lake Road. 6. Visual screening of the ,a, lanon property from new residential lots using landscaping and/or fencing techniques. 4 7. Visual screening of the St. Raphael's Church and parking lot from new residential lots using landscaping and/or fencing techniques. 8. With the exception of Scheme 2, visual screening of Bass Lake Road from new residential lots using berming, dense landscaping and/or fencing techniques. 9. With the exception of Scheme 2, vehicular access from Bass Lake Road is discouraged. 10. The southern portion of lot 5 is dedicated for purchase by Lots #7608 and #7616 11. The two lots on the western side of 5umter Avenue,//5537 and #5559, would be dedicated for commercial land use and would be rezoned accordingly. The following descriptions identify the unique characteristics of each design scenario: Scheme I-A: Single Family - 13 Lots (Exhibit G) The principal advantage of this scenario is that it reorients lots away from Bass Lake Road, provides buffer space, and preserves the existing single family residential character of the area. The scenario creates a single family home neighborhood around a cul-de-sac buffered from Bass Lake Road. The neighborhood is linked with Elm Grove Park and recognizes the surface drainage -: characteristics of the area's topography. The scenario would, however, require additional land acquisition from lot ff5520 to achieve the diagramed lot cortfiguration. An additional four lots would be gained using this scenario, above the nine lots being replaced on this block. Scheme l-B: Single Family - 14 Lots (Exhibit This scenario straightens the street and includes the Alanon site (#7615) in the development proposal. The inclusion of the Alanon site only contributes I additional lot over Scheme 1-A. An additional five lots would be gained using this scenario, above the nine lots being replaced on this block. Scheme 2-A: Single Family - 15 Lots (Exhibit This scenario offers a higher density alternative in which the lot, street, and block characteristics are more consistent with the plat of surrounding neighborhoods. A principal disadvantage is that at least five lots would have access only from Bass Lake Road, unless the driveway for the corner lot is oriented toward Sumter Avenue. Lot sizes would be significantly smaller than those of the established neighborhood to the south. Also, a public pathway connection between the new development is not indicated, although the potential to dedicate a pedestrian walkway between the two southeastern lots is available. The residual right-of-way dedication off of Bass Lake Road 5 extension would be sold to either the Alanon facility and/or St. Raphael's Church, to accommodate additional parking. Additional property would be acquired from Lots #7616 and #7624. An additional six lots would be gained using this scenario, above the nine lots being replaced on this block. Scheme 2-A and B are not preferred from a land use perspective in that lot frontage, building orientation and direct access to Bass Lake Rod present land use compatibility concerns. Scheme 2-B: Single Family - 15 Lots (Exhibit IO This scenario includes the Alanon site in the development proposal. The Alanon site would produce three additional lots over Scheme 2-A. An additional nine lots would be gained using this scenario, above the nine lots being replaced on this block. Scheme 3-A: Townhouse - 14 Lots/Single Family - 6 Lots (Exhibit K) This scenario establishes a land use transition between Bass Lake Road traffic intensity and the single family house neighborhood to the south by including both townhouse and smaller lot single · family homes which back up to similar single family house lots. An additional nine lots would be gained using this scenario, above the nine lots being replaced on this block. Scheme 3-B: Townhouse 19 Lots/Single Family - 6 Lots (Exhibit L) This scenario includes the Alanon site in the development proposal. The Alanon site would produce an additional five lots over Scheme 3.A. An additional 11 lots would be gained using this scenario, above the nine lots being replaced on this block. Scheme 4-A: Townhouse - 24 Lots (Exhibit M) Development exclusively with townhouse unit types would maximize the site's density potential, and therefore return on redevelopment investment. The higher density residential building type also provides a logical land use transition between the existing single family house neighborhood to the south and traffic intensity of Bass Lake Road to the north. A 20 foot wide landscape buffering provides a transition zone between the townhouse neighborhood and the single family house lots to the south. This scenario would be best developed as a planned unit development. An additional thirteen lots would be gained using the scenario, above the nine lots being replaced on this block. Scheme 4-B: Townhouse - 29 Lots (Exhibit Q) This scenario includes the Alanon site in the development proposal. An additional 20 lots would be gained using this scenario, above the nine lots being replaced on this block. The four schemes described provide a range of alternatives by which the redevelopment project may be pursued. Each have inherent advantages and disadvantages in addressing the issues described previously. Determining the relative costs and return on investment for each of these scenarios is the next step in this analysis. Results of those cost comparisons should be taken into consideration along with local market preferences as well as the long term impact of each scenario on neighboring properties. PROJECT COSTS The following preliminary expense estimates can be expected as a result of the redevelopment of the project site. There were no appraisals done for the existing properties. Therefore, the acquisition, relocation, demolition, and public improvement costs are based on amounts provided by City staff and its consultants. A. Acquisition. The following represents the 1994 assessed land and building value of all 11 properties (see F, xhibit h-'), plus 10% in order to be generally consistent with the market values azsodated with the Multiple Listing Service (MI, S). At the time of acquisition, the City should conduct an appraisal of the property according to the Uniform Relocation Assistance and Real Pwperty Acqui.~'on Policies Act of 1970 (Uniform Act) to determine more accurately the reimbursable value of each property. Assessed Value (11 properties) $715,600 10 Percent (Market Value) 71,560 $787,160 e Uniform Act is the principal guide in determining the appropriate · Using the guidelines of the Uniform Act and with assistance from Wilson Devel~t Services, our determination of replacement housing payments were based on three fundamental elements: 1. Differential between acquired and comparable housing. 2. Incidental closing costs. 3. Increased interest rate reimbursement. 7 The differential amount is the largest factor. It is a function of what is available in the real estate market at the time of displacement. The more time the City has to f'md a unit, the better its chances of not having to use an overpriced comparable. The displacing agency must f'md a comparable replacement unit before it can give the occupant a 90 day notice to vacate. The comparable must be available to the displacee and be functionally equivalent. That means approximately the same size, number of rooms, bedrooms and bathrooms, etc. Closing costs include mortgage origination fees, credit report, title opinion, recording fees, etc., typically mn $2,500 - $3,000 per property. Increased mortgage interest rate assistance is to compensate the displacee in the event the mortgage interest rate is greater at the new house. This is typically a nominal amount in this period of reasonable interest rates. In cooperation with Wilson Development Services, a survey of the immediate neighborhood was conducted. Two or three houses were found that had signs in front but were not yet on IVlI.S. One was priced at $79,900 and one at $77,850. This demonstrates any property under $90,000 moves very quickly and the agents are not rushing to get those listings into MI..S. There seems to be many houses that would list for under $90,000 in the area, however, they do not turnover very quickly. March, April and May usually generate a number of listings since many people try to coordinate moving with school schedules. It would not be wise to anticipate that many more homes will be coming on the market, especially if interest rates stay steady, they usually do in the spring and summer. The MIS shows the following number of comparable properties for sale as of this date in the New Hope Area: $60,000-70,0OO 1 $70,000-80,000 1 $80,OOO-9O,OOO 3 $g0,000-100,000 13 In today's market, total housing replacgment values may be anticipated at between $15,000 and $25,000, assuming appraisals would correspond to the valuations described to us by the City. This range may seem high, but the limited number of available homes would drive the costs higher ~ ordinarily anticipated. For our purposes, the cost of comparable housing has been designated as $90,000, the price range most functionally equivalent to the housing being replaced. /~ To determine the cost of acquisition for our calculations, an average assessed value of aLl (. eleven lots was used, plus ten percent to achieve market value. Two of these lots are currently for sale. Therefore, the voluntary acquisition may allow waiver of relocation benefits, and a reduction in these costs to the City. A long term property acquisition schedule that would accommodate voluntary land sales represents friendlier implementation strategy that could produce relocation cost savings. However, for the purposes of this evaluation, the average market value of all eleven properties were considered. Typical Replacement Rousing Cost of Comparable Housing $90,000 Cost of Acquisition - 71,500 Differential Payment 18,500 Incidental Costs + 3,000 Mortgage Interest Rate Adjustment -0- Estimated Moving Costs + 1,200 ..- Total Replacement Cost $22,700' Relocation Cost Estimate Replacement Housing $22,700 X ll Total $249,700 * This figure represents a conservative estimate of replacement costs. If the City phases acquisition over time to accommodate more voluntary sales, or can f'md less expensive comparable housing at the time of acquisition, some relocation savings may be realized. 9 C. Demolition. The following estimations were provided by the City Engineer. These figures include a 10 percent contingency fee and 25 % for indirect costs and services associated with the project's implementation. Detached Garage/Outbuilding; 6 units ~ $1,500/unit $ 9,000 Single Family Housing (no garage); 6 units ~ $3,000/unit 18,000 Single Family with Garage; 5 units @ $4,500/unit 22,500 Sub-Total $49,500 10 % Contingency : 4,950 25 % Indirect 12,375 TOTAL - $66,825 D. Subdivision. The following is a rough estimation of the necessary survey and replatting costs associated with preparing the new lots for sale: Subdivision $5,000 E. Public Improvements. The following estimations were provided by the City Engineer. They reflect a 10 percent contingency and 25 percent indirect cost and service fee associated with the project's implementation. These values vary slightly based on individual design scenarios, and will be reflected in the cost estimations of each scenario in succeeding sections. A minimum of 425 linear feet of roadway and public utility installation, described by Scenario l, Was used as the base value for extensions of public utilities in other scenarios: Storm Sewer $ 23,540 Street/Grading 63,950 Sanitary Sewer 21,960 Water Main 19,350 Services 13,400 Realign 5umter 19,700 Sub-Total $161,900 10 % Contingency 16,190 25 % Indirect 40,475 TOTAL $ 218,565 10 F. Total Project Costs without Alanon Site The following represents the total base cost of the project. In the following cost analysis by development scheme, this base cost has been adjusted to reflect various land use designs and densities. Land Acquisition $ 787,160 "-'~ Demolition -'~ 00,825 Subdivision 5,000 Public Improvements 218,565 TOTAL $1,327,250 G. Alanon Site For purposes of comparison, a site preparation cost estimate for the Alanon site is given below: Acquisition Assessed Value $ 215,700 10 Percent (Market Value) 21,570 $ 237,270 Relocation Replacement Cost $ 11,000 Moving Expenses 1,000 $ 12,000 Demolition $ 6,000 Total - Alanon Site Preparation $ 255,270 Total Project Costs with Alanon Site $1,582,520 11 II EDA III II REQUEST FOR ACTION originating Department Approved for Agenda Agenda Section City Manager EDA 8~14-95 Kirk McDonald~t Item No. By: Management Assistant By:// 5 RESOLUTION AUTHORIZING PURQ~IASE 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 pro- perty 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. This item was tabled at the July 24th EDA meeting, as the EDA requested further information on the relocation costs associated with this project prior to proceeding with the acquisition of properties. Cost estimates and an explanation of the costs involved with the Uniform Relocation Act have been provided by the Relocation Consultant and the City Attorney. Subsequent to the July 24th EDA meeting, a review appraisal has also been completed on this property by the Hennepin County Assessor who works in New Hope and he has prepared the enclosed letter confirming that the $62,000 is a reasonable Fair Market Value. Staff recommends approval of the resolution. MOTION BY ~'~'/~/~2 SECOND BY Review: Administration: Finance: RFA-O01 EDA RESOLUTION NO. 95- RESOLUTION AUTHORIZING PURCHASE OF 5559 SUMTER AVENUE NORTH (PROJECT NO. 541) WHEREAS, the owners of property known as 5559 Sumter Avenue North, legally described as (the Property): Tract B, RLS 97, Section 5, Township 118, Range 21, Hennepin County, Minnesota, have offered to sell the Property to the Economic Development Authority in and for the City of New Hope (EDA), and WHEREAS, 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 redevelopment area that presently contains blight or blighting factors or which because of age, obsolescence, market conditions and other factors is susceptible to blighting conditions, and WHEREAS, the fair market value of the Property has been estimated at $62,000.00 by an independent fee appraiser, and WHEREAS, the proposed Minnesota Standard Residential Purchase Agreement attached hereto as Exhibit A involves a purchase price of the Property for $62,000.00 with other terms and conditions as set forth in said Purchase Agreement, and WHEREAS, purchase of the Property is authorized by Minn. Stat. §469.101, Subd. 2, and WHEREAS, it would be in the best interest of the City and its people, and will further the City's general plan of economic development to purchase the Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated by reference. 2. That the Minnesota Standard Residential Purchase Agreement attached hereto as Exhibit A is hereby approved. 3. That the appropriate EDA staff and officers are authorized and directed to take whatever steps necessary to complete the purchase of the Property As set forth in attached Exhibit A. Adopted by the Economic Development Authority in and for the City of New Hope this day of August, 1995. Edw. J· Erickson, President At t est: Daniel J. Donahue, Executive Director CORRICK & SONDRALL, P.A. STEVEH ~. SONORALL ATTORNEYS AT LAW MICHAEL R. L~'~.EUR M^.~.. MA'=C,* Edinburgh Executive Office Plaza W~UAU C. S~.A~ 8525 Edinbrook Crossing Suite #203 Brooklyn Park, Minnesota 55443 T~ON~ FAX (a12) July 19, 1995 Danie~ d. Donahue Executive Director New Hope EDA .4401 Xylon Avenue North New Hope, MN 55428 RE:Purchase of 5559 Sumter Avenue North Our File No: 99.29431 Dear Dan: We have received a Purchase Agreement from the owners of 5559 Sumter Avenue North. The enclosed Resolution approves the purchase' of the property. No public hearing is needed. Because this property falls within the redevelopment areas as expanded by the Master Modification to the Redevelopment Plans and Tax Increment Financing Plans, this Resolution shou3d be passed after the City Council has adopted the Master Modifications. P~ease contact me if you have any questions regarding this. ySincerely, $3w Enclosure cc: Kirk McDonald (w/enc)~ [ St even A. Sondrall, £sci. July 26, 1995 Mr. Jules LaLibert6 Mr. Mike Meyer 5901 349th Avenue NW 12195 Mississippi Drive Princeton, MN 55371 Champlin, MN 55316 Subject: City Acquisition of 5559 Sumter Avenue North for Bass Lake Road Housing Redevelopment Project Gentlemen: At the July 24th City Council meeting, the City staff recommended that the Council pass a resolution authorizing the purchase of 5559 Sumter Avenue North, per the executed Purchase : Agreement. However, the Council tabled any action on your property for three weeks, due to the fact that they were informed by the City Attorney that the City must comply with the Uniform Relocation Act. The Council wants to know what its financial obligations are under the Relocation Act before it proceeds to acquire properties in the Bass Lake Road area. It is anticipated that a report with estimated relocation costs will be ready by the August 14th Council meeting, and at that time the Council will also reconsider the resolution authorizing the acquisition of 5559 Sumter. I will keep you notified of any action that is taken. Please contact me at 531-5119 ff you have any questions. Sincerely, Kirk McDonald Management Assistant/ Community Development Coordinator KM/prs cc: Dan Donahue, City Manager Sarah Bellefuil, Administrative Analyst Steve Sondrall, City Attorney Valerie Leone, City Clerk (Impr. Proj.//541) Doug Sandstad, Building Official Chad Henderson, Attorney at Law Jean Coone, General Inspector Family Styled u,ty .?il?,., [,it).;~ For ir~mily Living Hennepin County An Equal Opportunity Employer August 1, 1995 City of New Hope 4401 Xylon Avenue North New Hope, MN 55428-4898 . Attn: Kirk McDonald, Management Assistant/Community Development Coordinator Subject: Appraisal Review for 5559 Sumter Avenue North Dear Kirk: As requested in your letter dated luly 10, 1995, I have reviewed the subject appraisal. As the Assessor for New Hope, I have used assessment records as well as experience in the area to review the accuracy of data, appropriateness of opinions and adjustments, and the reasonableness of them. The report by Ron Lachenmayer, dated May 24, 1995, with the same effective date, presents an opinion of Fair Market Value (Fee Simple) of the property at 5559 Sumter Avenue North (FID #05-118-21~33-0082). That opinion of value is $62,000. This report is thorough and complete following accepted standards and practices. The data presented is relatively accurate and relevant. The c~mparables used are appropriately similar and from a close time frame. Adjustments made in the analysis are reasonable. Property appraisal methods and techniques were used. The conclusion of this report is appropriate and reasonable. Hennepin County General Services County Assessor Division Ao2103 Hennepin County 6overnmen~ Center Minneapolis, Minnesota 55487-0213 City of New Hope August 1, 1995 Page 2 CERTIY[CATION I certify that, to the best of my knowledge and belief: · The facts and data reported by the review appraiser and used in the review process are true and correct. · The analysis, opinions, and conclusions in this review report are limited only by the assumptions and limiting conditions stated in this review report, and are my personal, unbiased professional analyses, opinions and conclusions. - · I have no present or prospective interest in the property that is the subject, of this report and I have no personal interest or bias with respect to the parties involved. · My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this review report. · My analyses, opinions, and conclusions were developed and this review report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice. · I did not personally inspect the subject property of the report under review. · No one provided significant professional assistance to the person signin~ this review report. Yours truly, Glen F. Busitzky, SALVIA Principal Appraiser GFB:jb '."jL-!9-95 NED 12:21 MINNESOTA. .~TANDAF:IB RESlDFNTIAL PMROHAaE A6REEMENf :'. O ~ n · _ 0~"- .,.'-!,3:~ Av~ue No., New ~, ~ 554Z8, c/o ~ J. ~~, its ~ecutiv~ Birecto: BUYer. --.:t,~ f~r ~av~ent w~h ~e mai ~tate ~ Oue ~d PaV~ in ~e ye~ of ~_ ... ..... ~-:,m'.~.me~s ~na[ maya ~--~~e CEy COati o~t~er ~vernmen~ ~sessino aureoles. ' ' :~~m S Ag~me~t a~ ~ the ~ate of cmsmg, ~uyer . 5g Or of f~ture ~J 4_ me Coumda~ laces of t~o DroP. ~ffer wa~n~ mat t~ere ~s a right of a~sm to me m~ Dr~ from a Du~I~ riQht o? ~y. Satl~ warrant~ that " :here has Deem mo ta~r or material ~rnll~ :0 t~ O~ for ~i~ payment m~ not ~n made. ~l~r warranm mm ~erm are no *--?. -,- '~.~ ?'ooer ry are ~n worKmg Drear on the ~a~ of cloJlng. ' ...................... ~--~ ~% ....... . ~BIT A '. -::,:: ';~', :~',',;40ARD r:IEC'~iOENTIAL PURCHASE AGREEMENT/PAGE 2 cartes: ~onev shall ~ ~efund~ to ~uyer. ;~-~,-e+d '~ clos,~g w.mour waiver Or merger in the de~ of the QDj~JO~S To lille an~ without waiver 0f a~y ~m~es. afl0 ~ay: ~e li~te0 TO t~e ~S~ Of Curing oDj~iona to title, and ~n~uential ~amages · .- r "'~r,uo,'~ [~a~ a~y ~o~e gwen pumuant to ~s ~ntra~ ~S a 0own ~y~e~ note. an~ tony ~ pmaent~ for p~ment no~imstanoing SELLER'S SEU.,ER'S BUYER'S BUYER'S INITIALS INl"nAL,~q , INrriAL~ ......... INITIALS (gale) (D~lel · '~ 18. ~JUSOIvI~ION OF LAND. If tflia ~ele con~btutee ~ ~m. a au~ of I~ ~ ~ Sell~ ~ler shall 0ay all ~vl~on ' ' approv~ tot re~rQing aa of the ~ of ~. L". =DOENDA. ',t;a,c~e~ are (numOer)~ acl0encl& which are meOe m ~ of this Agreement. r~-'~$ IG A Lr'C.,ALt.Y OINOINO GON'T'RAG'r. EI[FOR~ llONIIq~, C, ON~.U[.T A LAWYER. Mlnn®sO~a law permits ;Icenf, e(~ /'~1 e&'~ze oroxerl aha eale~ agernm to prepare ~mna~ ~ntl, NO ~omm~aa- ADDENDUM TO PURCHASE ARREEMENT FOR 5559 SUMTER AVENUE NORTH Seller's R~clamation Ri~h~s. Buyer acknowledges and agrees Seller may reclaim the foltowirl~ personal property prior to Buyer's demolition of the improvements on the property: garage door, water heater, furnace, washer and dryer. Se;1~r's reclamation rights shall be subjec~ to the following Ce~]er sh~l] not remuve the referenced persona~ property u~i] Seller receives notice from the Buyer to do so. ~uyer agrees it wi~ give seller at least 48 hours notice that said property may be r~moved. Verbal ~Otice s~all be sufficient for this purpose. b. In the event Seller fails to remove the propert~ wi[h~n ~8 hours after receiving notice ~rom Buyer, ~uyer m~y dispose of the property as it ~ees fit. tn aaid event, Seller's reclamation rights to the property shall be deemed waived and Seller agrees it sha]~.have no claim to the oroperty or c~aim to money damages against Buyer for diepoea~ of the property. c. Seller agrees to indemnify and hold harmless Buyer for all claims for damages, including costs and reasonable attorney's fees, for any In~urles sufferea by any individuals acting for or on behalf of Seller t~ reclaim the referenced property regardless of whether amid claim or injury arises from the negligent Buyer or any employee, representative, agent or independent contractor of Buyer. 5e~er fur~er agrees th~s reclamation right is limited to the p~rsona3 property 3~sted in paragraph 1 above. Wel~ Oi.s~t.usure Steteme. nt. Se~er hereby tnforms Buyer that a we~ is ~ocated on the property legally described in paragraph 2 of the ~rchaee agreement, Se~]er further certifies the fo~owing information regaratng sat~ we~ accurate and complete to the best of his know~edge: a.Legal description of property: Tr'act B, RL5 97, S 5, T 118, R 21, Hennepin County, MJnnesota. b. Seller certifies that the fo33owin9 well the above descrlbed rea~ property. MN Unique We31 No: Well Depth: '.ear ~sf Construction: wel 1 Typ~: I r, Use; Not in U~." c. MaD o1' Well Location (~e attached d. CertifiGetion by 8eller~ c~r%iFy t~t t~nfoffmation provided ~s accurete .an~com~ete~ t~'~mt~ my 3.Real Estate Agency Oisolosure,~ee additional terms provision of paragraph 20 o~ ~he Purchase Agreement. 4. Rights of Tenant. Seller egree$ that this sale shall not be ~ubjecL to any tenant rights In t~e property, Seller agrees that ~ tenant rights will be terminated and the property w~l] De vacated on or before the d~te of closing, Buyer ~ckn~wledges end a~rees that Buyer will responsible for any ~en~nt c~m for relocation assistance pursuant to the Uniform Relocation ~ssistance and Real Property Acquisition Policies Act and agrees to indemnif~ and hold harmless Seller- r~r ~ny claims made by tenants pursuant to or under said Act. Dated: ~ /~ , 1,,5. CORaICK & SONDR~,~L, P.A. MIC.A~L ". ~FL~0" Edinburgh Execu~ve Office Plaza WILLIAM C. STRAIT 8525 Ed~brook Crossing Suite ~203 Brookl~ P~k. Minnesota 55443 TE~PHONE (&12) 4~1 F~ (612) 4~ July 5, '1995 Mr. Chad Henderson Attorney at Law 6200 Shingle Creek Parkway, Suite 385 Brooklyn Center, MN 55430 RE: Estate of Frances Louise Laltberte Our File No: 99.29431 Dear Mr. Henderson: : ! am forwarding to you the enclosed Purchase Agreement and Addendum at the request of Jules Laltberte, the Personal Representative for the Estate of Frances Louise Laliberte. The Economic Development Authority in and for the C~ty of New Hope is interested acquiring the property at 5559 Sumter Avenue North in the City of New Hope. Zt ~s our understanding that the decedent, Frances Louise Laliberte, was the fee owner of said property. In compliance with the Federal Un~form Relocation Assistance and Real 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, [nc., 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 ~n the property subject to no tenant interest or otherwise. This offer includes acquisition of all buildings and improvements to the property w~th 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 $82,000. The sidin9 issue (steel v. aluminum) does not affect the appraised value a~cording to our buildin9 official and the appraiser. Also, the EPA will assume payment for the pending $2,470 street assessment. We wi]] also be incurring an expense to cap and sea] the we]] on the property. As a result, we believe the $62,000 offer represents fair compensation for the property. The EDA wi]] also pay for all incidental expenses to transfer title to the property as required by Section 24.106 of the Rules- and Regulations including recordin9 fees, abstract extension costs and the State 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 resu]tin9 from their displacement from the property by the EDA's acquisition of the property. -. The EPA would like to consider this Purchase Agreement at its Ju-ly 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 GNED 7EVEN A. ONDRALL Steven A. Sondrall New Hope City Attorney and EDA Attorney slt2 Enclosures cc: Daniel d. Donahue, City Manager y~~ Kirk McDonald, Management Ass~m~ THISCOP dules Laliberte Mike Meyer EDA REQUF_~T FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA 8-14-95 Kirk McDonald ~ Item No. By: Management Assistant By:~/ 6 MOTION ACCEPTING APPRAISALS /~ND 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 redevelopmem 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 redevelopmem 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 Review: Administration: Finance: Page 2 August 14, 1995 This item was tabled at the July 24th EDA meeting, as the EDA requested further information on the relocation costs associated with this project prior to proceeding with the acquisition of pro- perties. Cost estimates and an explanation of the costs involved with the Uniform Relocation Act have been provided by the Relocation Consultant and the City Attorney. 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. ,-,'re Dep't. Fax: July 26. 1995 Mr. & Mrs. Ronald Huebner 7609 Bass Lake Road New Hope, MN 55428 Subject: Possible Acquisition of 7609 Bass Lake Road by City for Bass Lake Road Housing Redevelopment Project Dear Mr. & Mrs. Huebner: As we have discussed, the City has completed an appraisal on your property and I am enclosing a copy for your review/information. At the luly 24th City Council meeting, the City staff recommended that the Council accept the appraisal and authorize staff to proceed to negotiate. with you on the purchase of your property. However, the Council tabled any action on your property for three weeks, due to the fact that they were informed by the City Attorney that the City must comply with the Uniform Relocation Act. The Council wants to know what its financial obligations are under the Relocation Act before it proceeds to acquire properties in the Bass Lake Road area. It is anticipated that a report with estimated relocation costs will be ready by the August 14th Council meeting, and at that time the Council will also reconsider the motion accepting the appraisal/directing staff to negotiate with you. I will keep you notified of any action that is taken. Please contact me at 531-5119 if you have any questions. Sincerely, Kirk McDonald Management Assistant/ Community Development Coordinator Enclosure: Appraisal for 7609 Bass Lake Road cc: Dan Donahue, City Manager Jean Coone, General Inspector Steve Sondrall, City Attorney Sarah Bellefuil, Administrative Analyst Doug Sandstad, Building Official Valerie Leone, City Clerk (Impr. Proj. #541) 72:9 6~2-551.$I$9 ,=:.? 2ept. Fax: July 26, 1995 Mr. Patrick Olek 5520 Sumter Avenue North New Hope, MN 55428 Subject: Possible Acquisition of 5520 Sumter Avenue by City for Bass Lake Road Housing Redevelopment Project Dear Mr. Olek: As we have discussed, the City has completed an appraisal on your property and I am enclosing .: a copy for your review/information. At the July 24th City Council meeting, the City staff recommended that the Council accept the appraisal and authorize staff to proceed to negotiat~ with you on the purchase of your property. However, the Council tabled any action on your property for three weeks, due to the fact that they were informed by the City Attorney that the City must comply with the Uniform Relocation Act. The Council wants to know what its f'mancial obligations are under the Relocation Act before it proceeds to acquire properties in the Bass Lake Road area. It is anticipated that a report with estimated relocation costs will be ready by the August 14th Council meeting, and at that time the Council will also reconsider the motion accepting the appraisal/directing staff to negotiate with you. I will keep you notified of any action that is taken. 'Please contact me at 531-5119 if you have any questions. Sincerely, Kirk McDonald Management Assistant/ Community Development Coordinator Enclosure: Appraisal for 5520 Sumter Avenue cc: Dan Donahue, City Manager Jean Coone, General Inspector Steve Sondrall, City Attorney Sarah Bellefuil, Administrative Analyst Doug Sandstad, Building Official Valerie Leone, City Clerk (Impr. Proj. #541) Family Styled City ,~,,:i~, ~/?[~~ For Family Living BASS LAKE ROAD HOUSLNG DEVELOPMENT r ADDKESS,'PID OWNER/T3J(PAYER ,ASSESSED V.-~UE 05-118-21-33-0028 NH ,Ma.no Group, Inc. Land: -0- 7615 Bass Lake Road Bldg: -0- 1. 05-118-21-33-0088 M. Itilgers Land: 19,500 7605 Bass Lake Road Bldg: 33,000 /'~-2. 05-118-21-33-0089 Bank of Am. Trustee Land: 22,600 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 JeromedKarla 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- I 18-21-33-4X197 Arlene Peterson Land: 21,500 7700 55th Ave. N. Bldg: 70,000 05-118-21-334X)98 Dana Dempsey Land: 21,500 7708 55th Ave. N. Bldg: 60,000 05-118-21-33-0082 J. LaLibene 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 HOUSENG DEV'ELOPM]ENT t ADDRESS/PID OWNER/TAXPAYER ASSESSED 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 Jmes/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,.~00 5530 Sumter Ave. N. Bldg: 39,000 8. 05-118-21-33-0024 John Dore Land: 21,500 5538 Sumter A~e. N. Bldg: 47,000 9. 05-i18-21-33-0025 Luveme Peteeson Land: 19,500 5546 Sumter Ave. N. Bldg: 52,000 Total all properties assessed value $1,612,600 Total 9 properties in minlmnm project $ 605,100 Exhibit E BCL Appraisals. Inc. Bjorklund. Carufel. Lachenmayer, Incorporated July 6, 1995 City of New Hope 441J1 Xylon Avenue North New Hope, Mm 55428 Attention: Kirk McDonald Attached is the appraisal completed on luly 6, 1995 for the property at: 7609 Bass Lake Road New Hope, M~n M428-3828 Shen'i Huebner The estimate "~' as of July 6, 1995 is: Sbrty-Hve Thousand Dollars S6S,000 No..responsibility bus been a~mned for matters which are legal in nature, nor ha~ any opuuon on them been rendered other than ~uming marketabl· title. Liens and. eno .um.bran~s.., '.ff any, have been disregarded and the property was appraised aa tnousn tree o! lmleote~lfle~. · In this appraisal .a.~nment, the existence of potentially hazardous material used m .con:~Iu~.~ or ~ of the bmldins, such as the presence of urea- tormaldehyde foam insulation, asbest~, and/or the existence of substances such .as_tox~ .v,~ste or radon 8as, and/or the existence of any other environmental m.rluen~uen~e mai may adversely affect the value of the property, was not observed by me: nor do I have any knowledse of the existence of such matenais/substances/influences on or in the ptopm~. The appraiser, however, is not qualified to detect such materials/sul~stances/~. The existence of urea-formaldehyde foam i~ulation, 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. R6n I~ch~rnmaye~, SRA ; RI./jdw ~852Ansl~my~-Sema, Mimmlselis, Minnamm$~41S (61ZJ?Ji.(MOS Faz:'~t-~16 ~n.~Y o.,c~o. UNIFORM RESIOENTIAL APPRAISAL REPORT ~:~. ,o =:_ :.. L*~., ~c.~.an Re~ Land Survey No 08~, ~Fac:3 C ~ D :;.~.~Herme: :x *0~q~erRon Lachen~yer,_ SAR *~ref128~2 ~thony Lane South, Minneapolis, ~ gocatmn ,~ U~an ~ SuOu~an ~ ~1 Predo~t , S~e f~y houlmg ~ ~t 1~ ~ L~d uae ~mg~eo~d~MnlalnacMractl.$tlcl: Ne iRh~rhood ~un~ries eons itt of 62nd Ave :o the nor:h~ ~oone Ave to the west, ~gth Ave to the south and Cry Rd 81 to the east. See At~eh~ Addend. Market conditfoM in gte $1JMeCt nmghOofmxo4 (inc~uatg tuppott for U14 IMw4 con~ummll milled lo tile trend of - - such es ~ off competitive p~Q~II for ~le m t~ Migh~od. deicnpbon of t~ prevalence of tiler SuDDlY and demand ehar&cteristtcm midair to be in h~laflce. TYOiCal narketinR t~me £or homes the neighborhood is under three months. Harketine time &ooeer~ to ~ decreasini~ due :o the ].o~erinm Qt' ir~terest rates. R~tes are currently at 7.Z5% to T ~/8~ with zero to Cwo points ~inK t~i~l. Alt t~es of financtne are a~i~ble. 30 y~r mort~aees, are the norm. ~o~t ~f~ma~ f~ ~ (If IPpliu~) - * ti ~ ~lloNffb~lMr m c~t~ of ~ ~ ~re' Aa~ctabon (~A)~ ~ 75 z ~0~,2 , i ro.g~ Elev 5',, 'abv ~tr lvl ~im 1516~ ~,Ft, ~r~ ~Yfl-~ I ~z. AveraRe · ~ & ~e ~ a ~ ~ ~ ~ ~ ~ (e~m) ] Vi~ Res ident iai/Apts ~ N~I ~o~, 270177-00018 ~ (M ~m / ~ ~ W. Ilia Imat ille~ or II~ ~oato~ng zoning, use. etc.): ~ At~ched ~d~ 1 / ~ Bl~k ~ No AM T~(~ ~eh~ MW ~ w No ~(s~) ~ ~&~ ~ ~ wes ~8~ ~ ~T~ ~1 H~E ~ H~e not~ ~w~} ~0 I ~Mi~ ~O Iflem~ N~e not~ I , ~ ..... a~ ~a ~ ~ .... ~ ~ 3 ~l~ 2 h~a~ I . 0~63~m Ffl~ 0f ~mss Uv,M ~rea //(~q~lKe~ ~iti~l f~tur~ inelu~ r~r ~2~1S f~t ~, Fr~z~ndin~ ~r~l!-~ ~ ~;~ eh~k~ for infomti~ ~lv ~d aM not tnc~u~ In the a~rais~ ~lue. d ~ ~ ~ ~ i ~ ex~), m~ ~Mt ~i~ OI ~e~. w~ii~ad~tionl, etc.: v.,u..o, soc,,o- UNIFORM RESIDENTIAL APPRAISAL REPORT ,;~,, ~o ~,.~ ~00 s~;~ ~ S 20.00 · 8,~30 ~ocal sources. 7he sucre~, suffers Less ;hys~c~f ;uno,softie External ~ocat~o~ on h53 Lake R~. 7h~s results .- ~,mc,,~n 3~% 0~, 7% · s 2~,D00 an esti~ted S~,~00 ~oss ~n value. ~mcmm~ Vl~ o( Imo~ve~nm · S ~0. gl ~ . ~e attached sketch for d:mens; :ns. '~s-,e' vml~ o~ s,m mm,eye.ms · ~ I ~ 000 ~ 'TEM SU~ECT COMFA~SLE ~ 1 COMP~BLE ~ 2 CZ~P*~8~E ~C 7609 ~ss ~e R~d ~80~ ~d~ey Avenue 59a2 Jersey Avenue 5937 ~mpsn~re Ave · ~¢re. New Ho~e Crys~$ 'Crystal Crystal ~x~m,~mSu~tecd :,8 Blocks Northeast 8 ~Zocks Northeast 8 ~Zocks Northeast ~m,n~:r , ~S 38 ~ys-Cty ClS~ ~ 19 ~ys-Cty CZs~ ~S 20 Days-Cry m~.=iAv;/~mon~te ~/~son~te ~ ~Avi/~sonkte ~ ,,, Avi/~san~te ~~ 5: 3; ~ 6: 3 ~ 1: *1,000l 5: 2: 1: -3,000 6 3 1 ~m~s~A~ ) 1,0~6t$~ ~ 1.0~t~ : 1,071 ~Ft : 1,008Sq. FL D~,~l { ~ I ~Avera~e Car Attach .1,000 +500 D4C)~ ) Porch )].ace None 7.0oo 0oo Cmnnmllm,ble~CddudnllMml4Kllmlm~y'mcom4~ltllililytol~n~gl~lomo~Letc. ): SdlNP At~ohed Addefld~l. Sasum~mm{~lo R~rd R~rcl Xo Re~ord R~ord ~ mmmT II ~ere i~ no~, ~ o~ the ~t~ or ~mbl~ ~inl so~d ove~ ~he ~st 12 ~nt~ other ~ V~ I~ ~~~~. s 6~ ,000 ~~~st ~c~ ~.~0 ~l~ ~iS~ ~lvsts S6~.O00. [n~ ~G~C~ ~S not C~r tson ~lvmiO ~ GPGv~ tO ~ t~ ~ reliable indictor of ~~~~~B~F~~~ 1~ 6-93 ). i(~E~~V~~~~~TS~~~.AS~JUlY 6, 1995 BJO~, C~UFEL, ~YER, XNC. RESIDENTIAL~PPRAISAL REPORT UNIFORM T609 ~ ~ke R~d 5~6~ Pe~syLv~n~a ~re. ~ew Hope New Hope ~mSourc, ~S 61 Days-C:7 Clog Ventica:mnSource Inspection Rec/Clsd 2-1 Sme~0r ~ncm~ ~ c~,on Busy Stree~ ~up NRhbrhd -~,000~ ~~, ~ee Fee 5,re ~202 ,B8~12~ +2,000~ V,ew Park /~son [ :e ~m Co~ ; I -2,000 C~A/None ;Pal -1 None ~¢ne ~ ~ b ~n~ (i~ M ~ ~i~'l comlltibili~ ~ t~ ~lgh~d. Itc, ): EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA 8-14-95 Sarah Bellefuil [~"-'] Item No. By: Administrative Analyst By'.// 7 PUBLIC HEARING - RESOLUTION AUTHORIZING.AND APPROVING SALE OF 7901 51ST AVENUE NORTH TO CAREY A. LUCK~ROTH (IMPROV£MENT PROJECT NO. 505) At the July 24th Economic Development Authority meeting, the EDA authorized publication of notice and the holding of a public hearing at the August 14th EDA meeting regarding the sale of one side of the twin home located at 7901 51st Avenue North. This is a public heating to authorize and approve the sale. Lots 1 and 2, Block 1, Marky Addition, were purchased by the EDA in February, 1994. Subsequent to the purchase of the property, the existing structure was razed and an accessible twin home has been built on the site. A purchase agreement was signed by Jeff Bangsberg for the westerly unit located at 7909 51st Avenue in March of this year. A purchase agreement has now also been signed by Carey A. Luckeroth for the 7901 51st Avenue unit and is contingent upon approval by the EDA. The buyer is in the process of qualifying for a Minnesota Housing Finance Agency (MHFA) Community Activity Set-Aside (CASA) fh'st-time home buyer mortgage, as well as a second mortgage in the amount of $15,000 using CHDO Home Investment Partnership funds. If Carey does not qualify for a MHFA mortgage the purchase agreement shall be null and void. The purchase agreement states that the City will sell the home to Carey Luckeroth for $85,000. Staff recommends approval of the resolution by the EDA Authorizing and Approving the Sale of 7901 51st Avenue North to Carey A. Luckeroth (Improvement Project #505). RFA-O01 P, 04/07 EDA RESOLUTION 95- RESOLUTION AUTHORIZING AND APPROVING SALE OF 7go1 BIST AVENUE NORTH TO CAREY A. LUCKEROTH WHEREAS, the Economio Deve3opment Authority in and for the City of New Hope (the EDA) owns certain rea] estate known as 7901 - 7ge9 51st Avenue North, to be legally described as: h_ot~ 1 and 2, B3ock 1, Marky Aadl~lOn, Hennepin County, U~nr~esota . - ,~ ~roperty was purchased by the EDA i~ February of ,~..:~:~:~, at the time of said purchase the Property was -!~term:ped by the EDA to be blighted by reason of de]apidation, ,~soles~er~ce, arid faulty arrangement or design, and WHEREAS, ~ubsequent to purchase of the Property the existing. ~tructur'e w~s razed, a~d lhe EDA staff has Dean working w~t~ Hennep~n County and M~nnesota Housing Finance Agency to improve the Property with a handicap assessible twinhome to be eo~d to persons of ~ow or moderate in~ome, and WHEREAS, the EDA has awarded a contract for construction of th~ twinhomo on the Property and said construction is nearly comp ~ ~HEREAS, the EDA has entered into a Purohase Agreement dated '~.~' 20, !995 with C~r'ey A, Luckeroth for the purchase of Lot 2, ":,' .... .~.~.-_,b, 4a~d Purchase Agreement is contingent upon approva~ ~ .... ~,_dy of the EDA, and -:.%:~,,~, certain ~n~ormat~on regarding a we]] on said Lot 2, -; ~ r~.Js become known subsequent to Ju~y 20, t995, making .?..~r>, 4:he Addendum to Purchase Agreement set forth on Exhibit WHEREAS, the EDA has authority to $e31 the Property under Minn. Stat. §§469.OO1, 408,105 and 4~,029, and ~HE~EA~, on Augus~ 3, 1995, notice w~s published in the New ~4,?,~e-Galden Valley Sun-Post regarding a public nearing on the sale 7901 Clst Avenue NOrth, and ~y~.~6~, ,_he ~ale of Lot 2, Block 1, Marky Addition to Care¥ ,..~.:' ~ ,;', '~s ~r] the best interest of the C~ty of New Nope and ..... -.- ,-, · .... e.;rthers itg general plan of economic development, ":-'~=._, ~ IT RESOLVED by the Economic Development : ~;r ~hs City of New Hope a~ follows: · ~' ~qe above recitals ara incorDorated herein by 2. ThAt the sale of Lot 2, 51ock 1, M&rky Addition to Carey A. LUCkeroth in accordance with the terms of the Purchase Agreement attached hereto as Exhibit A and the Addendum to Purchese Agreement attache~ hereto as Exhibit ~ i~ ~ppr'uved. $. That the P~eeident and Executive DireCtOr are authorized end directed to sig~ a deed and any other documents, and to take such other action as needed to complete the sale : of kot 2, ~lock 1~ Marky Addition to Oare¥ A. LUCKeroth in accordance with the terms of said Purchase A~reement. and Addendum. ,~.d:p~c:J by ~he ~conomic Development A~thorit¥ in and for th~ · '.,F-.,~'~ ~n~ tqis d~y of , 1995 Edw. J. Erick~on, President Attest- Daniel J. Don~hue, Executive Director c:\ wp$1\cnh\ed~luc MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREEMENT BEFORE ~OL' I_'SE OR SIG% THiS CONTIL&CT, ~O[.' SHOLLD CON$['LT ~&ITH A.% ~TTORNE~, TO D/TERMI%E rHI$CONTRACT*.DEQLATEL~ PROTECTS ~OLR LEGAL RICHT$ MmncsolaSta[¢ Bar ~.ssoc;a[~,m 1. P ~RTIES. ~hts Purch;~e ~,?eement ~s made on July 20, 1~9..~ b? ~d beacon 3 ,adoress~ ~t X~n .&~'~ ~ Ne~ ~ ~ 5~l~. SELLER ~ (address~ 8t51 ~5~ Avenue ~. A~. 20Tt Ne~ ~ ~ 5~ BUYER 3 ~, OFFE~ACCE~A~CE, Buyer otTe~ m purch~e ~d Seller ~rees to sell re~i pro~ leg~ly described ,[ 13 Located at Is~cet address~ ~1 ft~ Av~ N~ Ci~ of ~ ~, i1 Coun~ of ~ne~ Sm~ of Minneso~. 16 3. ACCE~ANCE DEADL~E. ~e accep~ce da~ of ~is Ag~ement is ~e d~ it is delive~ by ~e I~t p~ s~gmng to ~e o~er I ~ p~ ~is otter ~ purch~e, unless ~cep~d s~t. sh~l ~ void ~ I 1:59 PM on I g tdatet Aught 2. 1~5. ~d in such event ~1 ~t money sh~l ~ m~nded ~ Buyer. 19 20 4. PE~NAL PROP~R~ AND ~ ~CLUDED ~ SAL~ ~e following i~ o~ ~n~ pto~ ~d fixtures owned bF 21 Seller ~d c~nfly loc~d on ~a pm~ ~ included in als s~e (l~b out item ~t intlad~}:2~=e= k..~. .... plum. shrubs. ~ecs. 22 :'~m '~'e:~:'": -m~ ~:::~:. :m~ ~::=. s~ns. :'~m~=~. '-'~:~:--' :~::. ~"-~_ :.m-m~ ~..:=: L-~:.; ::~ a~hed lighting fixtures 23 wi~ bulbs, plumbs8 fixings. ~ w~t he~n. he~n8 sys~. 24 in h-:m~:~, built-in air condioonin~ uni~. ' ' ' ~mm~c 25 '"~ter re~e~e~, built-in dishw~hem, g~c dis~, ~!~t ~ ~ ce--7~. 29 30 L'~n delive~ of ~e deed, ~ller shNI ~ ~livet a Bill of S~e for ~e 31 32 5, P~C~ AND ~R~, ~e pd~ for ~ ~ ~ ~n~ pm~ incl~d in 33 ~11~ $~,~. which Buyer sh~t pay ~ ~o1~: E ~est mo~y of ~ b~~ ~ipt of wh~ b ~ ~w~gcd (m ~ ~simd ~e next b~mess ~y ~r ~ m ~t ~t ofl~I broker, ~1~ o~ 37 c~h. on ~.l~. ~ DA~ OF ~, ~ ~ bM~ of by fin~mg ~ s~ on ~ ~ F~ A~. 39 - 42 43 A, Building ~ ~n~g I~, ~ m ~ ~ ~ B, R~c~m ml~g m ~ ~ ~ of ~ ~ wi~ e~ ~ ~v~; ~ D, U~li~ ~d dm~e ~ ~ ~ ~ ~ w~ ex~[ im~; 47 K, Ex~p~o~ m ~e ~ ~ ~ ~, or ~ wh~ ~ve ~ d~ m Buyer ~d ~cep~d by Buyer 50 51 54 ~. ~L ~A~ T~ ~ SPELL ~~ ~ 56 s~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ofclmm~ ~ ~ m ~ ~ ~1 ~ I~of~ ~r y~'s ~, md s~ ~ ~ ~ ~ ~ ~ m ~ ?ms) 1~ will ~~~~ ~i~, 62 fil~ I ~ ~ ~ w~ ~ ~ ~ ~ I~. If ~ m ~ ~ ~ ~ ~ ~ of c~ ~ PART or NON- 63 ~ ctmi~ ~1~ s~l ~ w ~ff I cl~I ~ h ~ ~ ~. If ~ ~ d~ ~ ~ ~ ~ y~ ~l~mI c~m[ ~ ~ ot NON~ ~l~i~ ~ ~ cl~m~ ~ pl~e ~r 67 69 ~ ~1 i~ of ~ ~g ~ ~ ~y~t wl~ ~ ~ ~ ~ ~ ~ ~ m ~ y~ of closing. ~0 72 ~e d~ of ~ ~L 73 75 A~ent for lm~v~ ~ ~ve ~n o~d ~ ~ Ci~ Coati ~ ~r ~v~W ~mi ~. (~ller's pmvmions for T6 payment sh~l ~ by pay~nt into ~c~w of I vz ~ ~ ~ ~t of ~ ~,} ~ of ~ ~ of ~ A~nL Seller 77 rep~s~ ~ ~1~ h~ ~t ~iv~ a No~ of ~ of a ~ public imprint ~ ~m ~ gov~ ~sin~ aurora, ~8 ~e cos~ of which pm~ ~y ~ ~d ~t ~ p~. ff a s~ci~ ~t ~ ~dinl nRet ~ ~ of ~is ailment 79 ~d ~fo~ ~ ~ o[ ctosing, Buyer may, a Buyer's opnOn: g0 81 A. Ass~e paym~t of ~e ~dini s~ci~ ~nt wi~ut ~j~nt ~ ~ p~ ~nt p~ of ~ pm~; or 82 B. Requi~ Seller ~ pay ~ ~dinl s~i~ ~nt (or ~c~w ~t pay~nt of s~ ~ pmvi~d ~ve) ~d Buyer s~l pay a 83 comm~su~ inc~ in ~e p~h~ p~ of ~ ~, whi~ in~ sh~l 85 C. ~cl~ ~ Ag~nt void by no~ m ~11~. ~d e~t ~ sh~l ~ ~d m Buy~. EXHIBIT A ~ ~. D ~IAGES TO REAL PROPERTY. h' ~e reai ~rop¢~ s ~ubst~uatN d~aged prior to closing. ~ts ~greeme~ ;hal~ ~ BuFer maF ~nspect me real prope~ ~d m ~¢ e~ent of suc~ resclsston. ~e e~es~ mone~ sh~l 0e m~nded [o ~ 9. SELLER'~ BOUNDARY L~E. ACCEl. RE~I~IONS ~ND LIEN W&~&NTI[S. Seller ~u ~at bufldinls. :f z~' z": ~fll be ~ecatee a~ cnurelF ~m ~e bound~ Jmes of ~e prope~ Seller w~u ~at ~¢~ ~s a right of access ~o ~e re~ prope~ from a public r~gh~ I,;[) ~aF Seller w~ ~a[ ~ere h~ been no lair or maten~ furnished m ~e pro~ For which payment h~ not been made 5e~ler '."~2 sum~¢ ~e delive~ of ~e deed or con,act for deed. [,~4 10. CONDITION OF PROPERTY. ;,)f 1}6 A. Seller ~ ~ ~1 ~pli~c~s. fixates, heating ~d air conditioning equipment wiring. ~d plumbing used ~d locamd on 10~ is connecmd m: ci~ se~er-~*~ ~ wamr-~ c~le ~-~. ~ller sh~l remove ~1 debris ~d ~1 pe~on~ pro~e~ 110 no~ mctud~d in ~is ~e flora ~ pro~ ~fom ~ssgssion d~ S~ll~r h~ not received ~y noticg ~m ~ ~ovemmenml aumon~ I 11 ~ to ~e cxis~n~ o~ ~y du~h elm d~c~. o~ wilt. or o~er disc~ of ~y ~ on ~ pm~. ~ 13 B. Seller knows of no h~do~ subs~ces or ~leum pmduc~ having b~n pl~ed, smm~ or mle~ed ~m or on ~e pro~ by ~ 14 pe~on m viol~ion of ~y law. nor of ~y unde~d sm~e ~ks having ~n I~d on &~ pm~ at ~y ~me. excep~ ~ ~ollo~s 116 Il8 119 ~20 C. ~ll~r's w~a~ ~ m~s~n~om conmm~ in ~is ~h 10 s~l su~iv~ ~ ~liv~ of ~ ~ or Con~t for 121 ~mvi~e~ ~ ~y notice of~ defect ot c[~ or h~ of~ m~ ~ in ~n~g ~ ~y ~u~h ~ wl~ ~s~t m m~m 123 124 ~. Buyer sh~l ha~ ~ fi~l m haw im~c~m of ~ ~ ~n~ ~ m ~l~i~. Unl~ m~u~ ~ I~ o~ or lending 125 mg~ns. ~ller d~ not ~l~ m ~v~ ~ ~m~ i~. ~ ~ ~ ~ ~ ~ ~ ~h 10. ~ 126 is ~ing sold "A~ ~" ~i~ ~ ~x~ or im~l~fl m~n~n ot ~ ~ ~ll~ ~ m ~hyl~ ~n~. q~i~ of ~ 27 wo~h~, or fim~ss for ~y ~cul~ ~. (~fl ~ m ~t in~ m ~v~ or I~ ~ ~v~ns of M~n. 128 Ch~mr 327A.~ 130 I !. ~I~L~U~ O~ N~C~ ~ll~r hm ~t m~ ~y ~ ~m ~ ~v~ ~ ~ ~ v~l~n of ~y I~. or~in~ 133 136 [37 139 of I40 141 14. ~A~ON O~ ~ ~ I ~ ~ ~ ~ of~fl A~ ~1~ ~l ~ ~r w~ ~ A~t 143 li~. ~ lev~ ~ ~g ~ ~. ~ ~ ~ ~ (10) ~ ~ ~ ~ of ~ A~ of~fl~ or 1~ ~ A~ ~i~ ~ h~ ~'~ ~ ~ ~ flfl~ ~ ~i~ ~1~ ~ ~ ~m or. g ~g'~ own ex,me. 145 m~ ~ ~li~n fo~ ~ ~ i~ ~1~ ~ ~ ~1~ of ~ ~i~. ~ ~1 ~ ~ (10~ ~i~ ~y~ ~r m~i~t of 147 ~vefl ~y ~fl~ o~ ~t ~ ~ ~ ~ ~!0~ ~ ~ ~ ~ ~ ~ ~ ~ m ~ ~ of ~1~.~ ~v~t ~ ~liv~ 1~9 150 15. 152 153 ~ of ~l~ ~1 ~ ~t~ ~ ~. C~ of ~ ~ ~ ~l~ ~ ~ ~ ~fl~ ~ ~ ~g ~a of 156 ~ 157 ~ ~ ~ ~ ~ ~le, ~ if~ ob~ ~ ~ ~ ~ ~ ~ m ~ ~ ~ ob~m. ~e closing sh~l [58 ~ pl~ w~ ~ (10) ~ ~s ~ ~ ~ ~ c~ ~ wh~ ~ I~. 161 ~M, ~ ~ ~ ~h W YOM ~ ~ m ~1~, W ~ MI ~ I~M ~ W ~m~r m ~ omcr, 162 ~ ~ ~ ~ ~ m~ m B~w. t65 m~ ~ d~ m ~l~'s f~m m md in ~ f~. 9~ ~ ~ m m~ ~ I~, ~ ~ ~ of~ following: 167 I. ~ ~ c~ wi~ w~ or ~ ~ ~ ~ of~ ~ ~ ~ ~ ~ w~of~ ~ ~d ~y: 168 (a} ~~~~'s~l~m~l~(~~subp~h(a) 169 s~ ~ iimi~ ~ ~ ~ of~ ~ m ~, ~ ~ ~ ~ ~); ~ 171 ~ ~ of~ ~ A~ by ~ ~ ~v~ ~ ~ ~ ~ ~ ~ ~t ~1 ~ void ~d ~1 t 72 e~ ~ p~ ~ s~l ~ m~ m ~y~. 175 t76 D. [f~e ~ ~, ~ is m~ ~ m ~v~ ~ ~ ~ ~ ~ ~ of ~ ~ ~m, ~ll~ m~ ele~ 177 ci~r of ~ ~ol~w~ ~. ~ ~ ~ I~: 178 I. C~I ~ ~n~ ~ pmvi~ ~ s~ ~ ~ MI ply~n~ m~ ~ ~ I~u~ ~. ~ ~ ;,~-' ~l:l'ome>s t'ees .~ perm~ea b? law ~4 E. ',t' ~tle ~s m~e~bie, or ~s made m~ke~bl¢ ~ provided hereto. ~d Seller det~ulB ~n ~? o~ ~ agreemen~ hereto. Buyer ~SO 1. Seek J~ages from %iler including cos~ ~d reportable a~ome?s' fees: ~" 2. Seek sp~c~fic pc~b~ce ~min six monms a~r such right of acuon ~ses. ~ ~e rifle IS O~ ~E E~[~CE FOE ~LL P~OVI~ION$ OE ~15 [90 191 16. NOTICES. All notices required he, in sh~l ~ in wri~ng ~d delive~d ~n~ly or mailed ~ ~ ~ss ~ shown at P~g~h 192 ~ above ~d. ~f maile& ~e effecuve ~ of ~e d~ of m~lin$ ~4 IV. SUBD~'ISION OF ~ND. if ~is s~e eon~m~s or ~qui~ a subdivision of I~d o~ed by ~tler. ~ller sh~l oay ail t95 ex.rises ~d ob~n ~1 neccss~ govemmen~ ~pmv~s. ~ller w~ ~ ~ leg~ d~cnption of ~e ~ pro~ m ~ convc~ea t 96 be~n or wttl ~ ~pmved for recording ~ of ~e a~ of closing. 198 18. ~E~TA ~W. ~is con~t sh~l ~ gove~d by ~e laws of ~e S~ of Min~ 200 19. WELL DI~L~U~. Check one of ~e following: 201 ~ Seller cc~fi~ ~at ~ller d~s not ~ow of~y wells on ~e de~d m~ p~. 202 ~ Wells on ~e subject re~ pm~ ~ diploid by ~11~ on ~ ~hed Well D~clos~ 203 2~ 20. ~D~IOUAL S~AGE ~ ~M DI~L~U~ ~ck o~ of ~ following: 205 ~ ~ller ~fi~ ~ ~em is no indNid~ ~w~e ~nt sys~ on ot ~ing ~ 206 ~ lndividuM ~w~c ~ent sysm~ on or ~g ~ pm~ ~ d~to~d by ~ll~ on ~ ~hed disclos~ s~mem. 208 2~ 21. SELLER'S A~AV~. At close& ~1~ s~l support ~ w~m ~ ~ in ~ ~h~ A~ment by 210 ~x~u~ ~d ~l~e~g a ~ Unifo~ Conv~mg BI~ ~o~ ~. 1~ 117-~ or 118-~ ~it orally. 211 2~ :: '' :~: '~ :: i ?"~'~: '?'' ~ '~i~i' 'i~'7!'-~' !'i:i. i ........... ~ ......... :: '" .......... :: "~ :::' '"~ ........ ~:~:~ "":~ "" 2z4 217 218 THIS IS A LEGALLY BINDING CONTRACT. BEFORE SIGNING, CONSULT A LAWYER. Minnesota law permi~ licensed real estate brokers and sales agents to prepare purchase agreements. No recommendation or representation may be made by any real estate broker or sales a~ent as to the le~l sufficiency, the legal effect, or the tax consequences of this contract. These are que~ons for your lawyor. (Dram) tDam) idle) (Dam) Name: .4~ desilaand by Seller Addm~: Fin~ Name: City: FINANCING ADDENDUM FOR FHA INSURED MORTGAGE ~( se oni) ,~l[h 'x,'lJnneso[2. S(andzrd Restdentl;~i Purchzse .~.sreemcnt. Mmneso[& S~a[e Bar ~.ssoc~atzon C i~94~ Yh~s ~.ddendum is a contlnuauon of thc PRICE .&ND TERMS contained :n Paragraph 5 of the Purchase ~.greemen: aa:ed 2 ~uty ~0, t~ b~ and between Eco~ic gevcf~c~t A~ort~ ia md f~ ~c C~ ~fNe~ H~e ~ ~flcr 3 and C~v A. L~k~ ~ B~e~ for prope~' located at or described A. FINANCING CONTINGENCY: 8 Buyer's perfo~ce of Buyer's obligations under this Purch~e Agreement is commgent u~on Buyer's securing ~he ~nancmg 9 ~o m p~agraph B below. This contingency is effective unui ~eha~ 12 13 (ii) t~e 1~ day of ~[~. 14 15 If Buyer is unable to secure the fine,lng on or before ~e date refe~d to ~ve. Buyer may t~i~ate [be Purcb~e Aereemem t6 by giving Seller wr~en notice of te~ination on or before such date. If p~ (ii) a~ve is ~plicable. ~d tf Seller h~ not received 17 evidence re~onably satisfacto~ ~o S~ller ~at Buyer h~ s~d t~e tin,ting on or ~fore t~e date refe~ed to m p~ I llJ 18 Seller may t~i~att tbt Purcb~ Agr~ment by giving Buyer wri~en no,ice of ~ ~inatio~. which will ~ effecuve 48 hours after 19 the giving of the notice: provided, however, tha the te~inatlon sh~l ~ ineffective if Buyer provides Seller with evidence re~onabb i 20 satisf~to~ to Seller that Buyer h~ sec~ed the fin~cing wi~in the 48 ho~ ~n~. If ~e ~ch~e A~eement ~s resonated b~ 21 either Buyer or Seller. the e~est money paid by Buy~ sh~l ~ ~ded to Buyer, subject to ~y o~er applicable provisions of 22 ~ch~e A~ement. In such event Buy~ ~d Seller sh~l si~ a c~cell~ion of ~e ~c~ A~ement. [f Buyer does not 23 provide Seller with notice of te~inafion ~ requir~ by this p~ph, ~e contingency con--ned in this p~graph shall be deemed. 24 waive~ ~d. subject to Seller's fi~t to ~ina~ ~ provided a~ve, ~e ~ A~eement sh~l ~ binding upon ~d ~e 25 ~ffo~ed by the pmies according to im te~s. 26 27 · ~A MORTGAGE TE~S: 2g Buyer will ~ply for ~d aRempt to sec~, at Buyer's ex~. ~ F~ ~S~D Mong~e ("Morgue") in the ~ount stated 29 the ~ch~ A~ement ~oRiz~ mon~ly ov~ a ~ of not mog ~ ~ y~ wi~ a fixed intereg rote not to exceed 30 ~/0 ~r ~num or ~ ~jus~le rote wi~ ~ initi~ inte~ m~ of no mom ~ ~% ~r ~ ~d a m~im~ interest 31 rate of no more ~ ~% ~r ~ ("~e'), ~d wi~ omer m~s not less favo~le to Buyer th~ those set fo~h m this 32 Addendum. Smd F~ morgue sh~[ ~ ~r ~e fi~ time home buy~ pro~.wi~ M~A (CASA ~o~). 33 34 C. MORTGAGE APPLICATION: 35 ~he Morgue ~pli~tion is to ~ m~ wi~in five (5) b~in~ ~ys ~r ~ ~ of ~e ~h~e Agreement. Buyer s~ail 36 ~ ~st effo~ to s~ ~ MoR~ ~ ~1 ~ ~1 ~ ~ui~ m ~mm ~ Mo~e. 37 38 ~. MORTGAGe IN$~Cg 39 ~t m f~ r~la~o~, a o~ tim~ m~ i~ ~i~ ("M~) m~ ~ ~d to F~ at ~e tim~ of closing of this 40 ~tion. Additio~ MIP ~ m~ ~ ~ ~ ~ ~ ~d ~ s ~ig ~is. ~e MIP will ingre~ ~he Morgue ~ount 41 ~l~ss ~id in c~h ~ closing. ~ ~ovisi~ ~ nm ~ ~ii~l~ to ~ini~ ~tio~. 42 43 E. ~!~O~ ~ MoRgue digest ~in~ ('Point") ~i not ~ ~ of ~ M~g ~o~t. Such Poin~ ~1 ~ p~d ~ follows: Buy~ s~l ~y ~ Points). NO~: ~ ~ ~ m~ ~11~ c~b~ ~low~ ~ F~ 47 Seller s~l pay ~ Points). 48 49 ff ~e Poin~ ch~g~ ~ ~e I~d~ ~ 1~ ~ ~ Po~ ~ m on lira ~: (initi~ o~tion I, 2 or 3) 51 ~ ~ Buy~/ _ S~ll~ 52~c Poin~ ~1 ~ c~ fi~ to ~11~ ~d ~e ~ m B~. If ~ Poin~ ~d ~ ~11~ ~ I~ ~ s~ out on line ~47. 53 then (inifi~ o~ ~ or b.) 56 ~11~ s~i ~y only ~ Poin~ e~ ~ I~, or 58 b. ?: ~;; ~?.?:~ Buyer/ ~11~ 59 ~11~ s~l ~y ~ ~il ~o~t ~ to on ling ~7 ~ ~ ~ ~1 ~ ~li~ m Buy~'s , ~ cl~i~ g~ ~ di~d ~ Bu~. 61 si :. ~?:,??.~:.~ ~/:::::::::::::::::::::::::::::::::: 63 ~ Poinm s~l ~ c~g~ fi~ to Buyer ~ ~ ~ to ~ller. 67 69 ~e ~e ~d Poin~ sh~i ~ (s~i~ oat ~) ~~n ~g ~ of m~g ~pli~on, ff ~e ~e ~d Poin~ 70 float~ it sh~l ~ ~c sole diggtion of (s~i~ oat ~ ~*~ to I~k in ~e ~ ~ Point. If Seller h~ sole discretion 71 to lek in thc ~ ~d Point, Buyer s~l si~ I~der's I~k-in d~ p~ptly u~ notifi~ti~ ~om Seller. 72 73 G. ~A COMMITMENTWO~ 74 No~ing in thc ~ch~ A~ment sh~l ~ con--ed ~ a w~ ~ ~11~ will m~ ~y rcp~ gquigd by F~. However. 75 Seller sh~l pay up to ~ to m~e rcp~ ~ui~ ~ F~. If ~ ~uir~ r~ exce~ing this ~ounb 76 Scllcr sh~l ~vg the following optics unl~ Buyer ~ in w~ting ~ ~y ~e g~t of such excess 77 18 I. M~in$ th~ n~c~ss~ r~p~n; or '~ ' ~e~oua~tn~ ~h¢ cost o( m~mg repmrs ~n Buyer: or Buxer '.n such e~e~t. Bubcr :r,~ Se~ler snai~ slg~ a canceflauon of ~he P'~rc~ase ~greemenl H. LENDER PROCESSI~GFEES: S5 <e!ler mail pa} m~sce~ianeous processing Fees ~ch the lender cannot charge to BuFer not to exceed NOTE: LINES ,88 THROUGH 108 .ARE REQUIRED BY FEDE~L ~GULATION TO BE INCLUDED IN THIS ~DDENDL'M. g8 I. FHA ESCAPE CLAL'SE: ~9 'It ~s ¢xpressl? agreed ~ha:, not~thstanding ~y other provisions of this contract, the purch~er shall not be obligated ~o OO complete the purchase of the prope~y described herein or to incur ~y penalty by forfetture oF e~est money depostts or q l otherwise, unless the purch~er h~ been given in ~cor~ce w~ HUD/FHA or VA requtrements a wrttten statement o2 by the Federal Housing Commissioner, Veter~'s A~inistration or a Direct Endorsement lender serene t'o~h [~e q3 ~a~ue of the prope~' or' not less ~h~ S~,~. The patchier shall however, ha~e the privilege ~d q~ option or' proceeding with consummation of the contact without reg~d to the ~ount of the appraised valuatmn THE ~5 .~P~&ISED VALUATION IS .~VED AT TO DETE~E THE M~IMUM MORTGAGE THE DEP.~TMENT OF 96 HOUS~'G AND U~AN DEVELOPMENT WILL ~SU~. HUD ~ES NOT W~NT THE V~UE NOR THE 9e CONDITION OF THE PROPERTY, THE PURC~SER SHOULD SATISFY HIMSELF/HERSELF T~T THE PRICE AND 98 CONDITION OF THE PROPERTY A~ ACCE~ABLE." 99 I~ J. CERTIFICATION OF BUYER AND SZLLZR AN~ ~A~ ESTAT~ AGENT. I01 l/we, the undersigned Seller{s} ~d Buye~s}. hereby ee~i~ th~ the te~s of ~e s~es con~t ~ted ~ l~. 102 ~e tree to re?our best ~owledge ~d ~lief ~d that ~ere ~ no o~er a~¢emen~ en~red into ~¢~een ~y of us or the 103 broke~ ~d agen~ except those a~ched to th~ sMes con~t. I/we ~i~ ~ Uwe h~v~ no ~owledge of ~y lo~s that 104 have ~en or wdl ~ made to the Buyer or of Io~a that ha~e ~n or will ~ ~m~ by ~e Buy~ for p~oses of tingeing I05 this tr~saetion, other th~ thos~ described in the s~e$ ¢on~t {including ~den~}. Fw¢ ee~i~ ~at the Buyer h~ not 106 been ~d will not be paid or reimbursed by mW~ for ~y of the c~h down payment. ~we ce~i~ th~ the Buyer h~ not 107 will not receive ~y payment or reimbu~ement by met~ for ~y ~lo$ing coa~ whioh have not ~en previously disclosed in 108 the sales contr~t {inCluding mendmen~). 109 Buy~ shall also apply t~r ~d sec~e a S~onfi Mo~gag~ in th~ mo~t of $15,~.~ ~in~ CommunlW Housing Org~izaUon (CHODO} Home Invea~ent Pmne~hip Funda. Buyer ~owl~ges r~eipt of the Buyer Aw~eness of HOME lnves~ent Pmne~hip ~ogrm ~ond Mo~g~ ~ he,to. SELLER: Economic De'velopment Authority in BUYER: Car~y A. Luck. eroth and for the~City of New~.,Hope..l f~s Executive 1Sift'or /Date) (l~atet (~) (l:~t~) (D~te) LISTING AGENT: NONE. SELLING AGENT: NONE. (Date) WARNING: It is a crime to knowingly make false statemems to the United Stems on this or any other slmmlar form. Penalnes upon convtctzon can include a fine and imprisonment. For detnils see Title I~t U.S.C.S. Section 1001 and Section 1010. This form is required by HUD Hanabook 4155.1 REV-4 laar~rapha 3-4. an,t 3-5 for S~l~ Agl'~,'men'.s int~'n{ied to b~ fining, ced by ~t F,H.A.-INSURED Mortgage. Buyer Awareness of HOME Investment Partnership Program Second Mortgage I. F!n~cing ~ontingenc~. This Agreement is contingent upon Buyers obtaining, at their ex:pense, the puxi~ase money first mortgage, and meeting the requirements of the HOMT inves'anent Partnerships Pro,am Mortgage. 2. promi~grv Note and SecQnd Mortgage in Favor of CO-OP Northwest ~Qmmunitv Revitalization Comor'ation and County of Hennetfin. Buyers agree to and shall execute, at closing; I) a Promissory. Not~ in the principal amount of $ .... in favor of CO-OP Northwest Revitalization Corporation and County of Hennepin, the form of said Promissory Note is attached hereto ~ Exhibit A; 2) a Mortgage in favor of CO-OP Northwest Commumty Revitalization Corporation and County. of Hennepm, wh/ch Mortgage shall, among other things, secures payment of the principal amount of said Promissory Note and; 3) a Declaration of Covenants and Restrictions. The Mortgage documents will contain the following conditions: A. in the event of a sale or transfer of rifle, HOME funds must be repaid. County may agree to a lesser amount in the event that County. determines there are no net proceeds or where the net proceeds are i~cient to repay the full amount of HOME ~ssistance. B.The CO-OP Nordawest Communi .ty Revitalization Corporation will have the right of first refusal in the event of a bona fide offer from any person to purchase the Subject Property.. C. The maturity date ofthe HOME Mortgage shall be thirty (30) years from the date of execution' by the Buyer, unless the Buyer:. 1) Voluntarily or involuntwily, no longer uses the Subject Property. as their principal residence or leases, sells, transfers, mortgages or pledges all or any part of the Buyers interest in the Subject Property without prior written consent o~'the CO-OP Northwest Community. l~-vitalization Corporation and the County. of Hennepin; 2) Defaults under any terms, covenants or conditions of the Mortgage or Promissory Note; or 3) Defaults under ,ny terms of'the first mortgage secured by the Subject Property, including by way of illustration and not limitation, the failure to make payment pursuant to said first mortgage. In which case the unpaid principal balance of the HOME funds shall immediately be due and payable. No repayment shall be required and no interest shall accrue to the principal amount of HOME funds provided by CO-OP Northwest Community t~.evitalizafion Corporation and the County of Hennepin and secured by the loan documents,, prior to 30 years from the date ofexecurion of loan documents by the Buyer, so long ~s the Subject Property remains a single family unit, occupied by the Buyer. £hou. ld the Buyer fa.it to meet a.nv of' the above terms a_nd conditions of the Note, Mong,a?, cr Declaration of Covenants and Restrictions, CO-O? Northwest Commtmi ,t-y Rev'italization Corporat:on and the County. of Heanepin, at it~ opnon, may declare the loan due and payable. Buyers f~tl~er agree that sa~d Mortgage executed by the Buyers in favor of CO-OP Northwest Commumty Revitalization Corporation md ~e Co~ of He~epin sh~ include m ageemen~ for ~e protection of~e Co~W of He~epin's interest ~ Mortgagee. w~ch a~eeme~t sh~ req~re ~e Bu~ ~o~fly md severely) to no~ CO-OP No,west Co~iw Revit~iza~on Co~orafion md ~e Co~W of He~ep~ ~e~ately, whenever ~e Buyers receive. ~ec~y or in~ec~y, no,ce foreclose procee~ngs (eider by advemsemenk at,on or o~e~se) have be~. f~reelosiag ~ ag~ ~e Subject Prope~. inclu~ng, by way of il1~a~on md not ~mita~oa. ~e forecto~e of ~e f~st mortgage enc~be~g ~e Subject Prope~. ~ of ~e ~m. duties md ob~ga~ens cont.~i~ed ~ ~ p~h 2 sh~ ~ve md sh~l not merge ~ ~e de,yew of ~e deed conve~g fide to ~e Sabject Pmpe~ to Buyers. I have read the provided Buyer Awareness information and understand the conditions of the HOME Investment PartnersMp Pro,'am Second Mortgage. Bayer. Sigzzature ~'~ Da~" Date Hennepin Housing Consortium HOM~E Investment Partnerships Program PROMISSORY NOTE $ , Minnesota Date of Note: 199 Maturity Date: In the amount and manner hereinafter specified, for value received, The Undersigned (Borrower), hereby promises to pay to the order of CO-OP Northwest Community. Revitalization Corporation aad County of Hennepin, State of Minnesota, ("Holders") at A-2400 Government Center, Minneapolis, MN 55487, or at such other location as Holders may direct, the principal sum of ($ ) (the Original Note Amount), without interest, on the Maturity Date as hereinai~er defined. This Note is secured by a HOME Mortgage on real property located at , Hennepin County, Minnesota ("Property"), and legally described as follows: The Maturity Date of this Note and the Home Mortgage which secures it shall be thirty (30) years from the date hereof, unless prior to that date, the Borrower:. 1. Voluntarily or involuntarily, no long~' u.~ the Property as his principal residence, or leases, : sells, transfers, mortgages or pledges all or any part of the Borrowerla interest in the Property without prior written consent of the Holder;, or 2. Defan[ts on any terms, covenants or conditions of this Note or the HOME Mortgage which SecUreS ~ or 3. Defaults on any terms of the first mortgage secured by the Property, including by way of illustration and not limitation, the failure to make payment pursuant to said first mortgage. In which case the Original Note Amount shall immediately b~ due and payable. No repayment shall b~ required and no inter~t shall accrue on this Note or the HOME Mortgage prior to the maturity date if the Prol~rty remains a single family unit, occupied by the Borrower. Should the Borrower fail to meet any of the above terms and conditions of this Note or the HOME Mortgage, the Holders, at their option, may declare the original Note Amount immediately payable. EXHIBIT A [n the event that CO-OP Northwest Community. Revitalization Co~oration (CO-OP Northwest) ceases to exist as a Community. Housing Development Organization, as defined by the HOME regulations. CO-OP Northwest's interest in the property., under this Note. HOME Mortgage and Declaration of Covenants and Restrictions, should be conveyed to the County of Hennepin. The lien created in the amount of the Original Note Amount shall be subordinate to the lien of the purchase money mortgage for the Property. In the event that the Borrower is notified directly or indirectly that foreclosure proceedings (by advertisement, action or otherwise) have been commenced or will be commenced, foreclosing any liens against the Property or any part thereof, including by way of illustration and not limitation, the foreclosure of the first mortgage encumbering the Property, then the Borrower shall immediately notify, in writing, the Ho[den of such proceedings. Upon payment of' this Note as provided herein, the Holders will, within 30 days, upon written demand by the Borrower, execute a release and satisfaction. Presentment, protest and notice of dishonor are hereby waived by the Borrower. The Borrower shall pay all costs incurred by the Holders hereof in the collection of this Note, including re~onable attorney's fees. To secure payment of this Note, the Borrower will execute a HOME Mortgage deed, a copy of which is attached hereto as Exhibit A. .: If there is more than one Borrower under this Note, each person shall be considerecl a Borrower' within the meaning of this Note, and each shall be jointly and severally responsible for payment under this Note. DATED: BORROWERS STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) The foregoing instrument wa~ acknowledged before me this day .of , 199 .... by and Notary Public 10/20/94 U:kHOME~LEGALDOC~COOP.PRO Hennepin Housing Consortium HOME lnveswnent Partnerships Program DECLARATION OF COVENANTS AND RESTRICTIONS WHEREAS, , (hereinafter referred to as "Declarant"), is the owner of certain real property., (hereinafter referred to as the "Property"), situated in the city of , County of Hennepin, State of Minnesota, and legally described as: ; and WHEREAS, Declarant has received a loan (hereinal~er referred to as the "HOME Loan") from CO- OP Northwest Community Revitalization Corpo~tion and the County of Hennepin (hereinafter referred to as the "Lender") for the purchase of the Property; and WHE~S, Declarant pursuant to the terms and conditions of said Home Loan, hereby agrees to impose certain covenants and restrictions upon the Property, to ensure that the Property remains affordable to low-income persons. NOW, THEREFORE, said Declarant makes the following Declaration, hereby specifying that said Declaration shall constitute covenants to run with the land and shall be binding on all parties in interest and their successors and assigns: 1. The Property shall be maintained as single family unit, occupied by the Declarant. 2. In the event of a voluntary or involuntary sale or transfer of title of the Property, the full amount of the HOME Loan must be repaid. The County may in its sole discretion agree to a lesser amount in the event that the County determines there are no net proceeds or where the net proceeds are insufficient to repay the full amount of the HOME Loan. Net proceeds are defined as the fair market value of the property, determined by an independent appraisal, less closing costs, the amount of the original downpayment, and the balance of the first mortgage. ~' 3. CO-OP Northwest Community Revitalization Corporation will have the rigl~ of trst refusal in the event of a bona fide offer fi'om any person or entity to purchase the Property. Within 30 days of receipt of written notice from Declarant of a bona fide offer to purchase the Property, which notice shall include ali terms and conditions of said offer, CO-OP Northwest shall notify Declarant in writing of COOP Northwest's intent to exercise its option to purchase the Property. CO-OP Northwest shall then have 45 days to complete the purchase of the Property in accordance with the remaining terms of said offer. The Lender will allow a HOME Loan mortgage to be utilized on the Property, if the Property meets all Federal HOME Prosram Requirements and is purchased by a new eligible low income homeowner, as certified by Hennepin County. "Low Income Homeowner" shall mean a person or 81'oup of persons constituting a household whose combined income does not exceed eighty percent (80%) of the area median household income for the Twin Cities Standard Metropolitan Statistical Area, as determined from time to time by the U.S. Department of Housing and Urban Development (HUD) or any successor. EXHIBIT B 4. The covenants and restrictions of' this Declaration shall be valid and operative until thirt%, t30) years from the date of this Declaration or until the date on which all sums owing to th~ Lender under the HOME Loan have been repaid, whichever is earlier. IN' WITNESS WHEREOF, Declarant has caused this Declaration to be executed and acknowledged this day of , 199__. STATE OF MINNESOTA ) COUNTY OF FIENNEPIN ) The foregoing instrument was acknowledgc,~cl befor~ me this day of , 199 , by, and Notary Public This document was drafted by: Arthur W. Katanan Assistant I-lennepin County Attorney Civil Division A-2000 Government Center Minneapolis, Minnesota 55487 U :~OME~,EG,A~)OOCI:~P.DEC DECLARATION OF COVENANTS This declaration is made this day of , 1995, by Economic Development Authority in and for the City of New Hope, a Minnesota municipal corporation, hereinafter referred to as the Declarant. WHEREAS, the Declarant is the fee owner of: Lots 1 and 2, Block 1, Marky Addition, according to the plat thereof filed or of record in the Office of the Registrar of Titles in and for Hennepin County, Minnesota, (hereinafter the Property), and WHEREAS, the purpose of the Declaration is to insure proper use and improvement of the Property and each residential site so as to protect all owners of the Property against such improper use of the Property that will depreciate the value of their Property, to encourage the maintenance of attractive improvements appropriately located to prevent an inharmonious appearance and function, and to provide a development that will promote the general welfare of the neighborhood. NOW, THEREFORE, the Declarant hereby declares that all of the Property shall be held, transferred, sold, conveyed and occupied subject to the following covenants, conditions and restrictions which are of the Property, and which shall run with the Property and be binding on all parties that have a right, title, or interest in the Property or any part thereof, their heirs, successors and assigns, and shall inure (o the benefit of each owner thereof. 1 1. Definitions. "Property" shall mean the real property platted as Lots 1 and 2, Block 1, Marky Addition, Hennepin County, Minnesota, according to the plat thereof on file or of record in the Office of the Registrar of Titles in and for said County. "Lot" shall mean any lot in the Property. Whenever the singular is used, it shall include the plural, the plural the singular, and the use of any gender shall be applicable to all genders. 2. Ordinances. In addition to the provisions of this Declaration, the ordinances of the City of New Hope, Minnesota (hereinafter City) in effect as of the date of this Declaration shall be binding hereafter. 3. Land Use. The Property shall be used solely for single- family residential purposes. No trade or other business activity shall be carried on upon any of the Property, nor shall anything be done thereof which may be or becoma an annoyance or nuisance. 4. Improvement of Prooert¥. Except for the construction of the dwelling on the Property while the Property is owned by Declarant, no owner shall undertake any modification, change or alternation of the dwelling thereof, whether functional or decorative, unless and until the value, type and size thereof, materials to be used in construction, exterior color scheme, specifications and details thereof, shall have been approved in writing by Declarant, and all necessary permits and approvals have been received from the City. 5. Temporary Str~c'ture~. No structure of a temporary 2 character, recreational vehicles, trailer, basement, tent, shack, 9arage, barn or other out buildings shall be used on any lot at any time e~ther temporarily or permanently, except that each lot may have a garden or yard storage shed not to exceed 100 square feet, provided that its exterior is of the same material and color as the dwelling and its placement on the lot is such that it will not damage or interfere with any easement for the installation or maintenance of utilities, and will not change, obstruct or retard direction or flow of any drainage easements. 6. Landscaping. No tree, hedge or other landscape feature shall be planted or maintained in the location which obstructs sight lines for vehicular traffic on public streets. 7. Window Treatment. No bedsheet s, plastic sheets, newspaper, plastic storm windows or other similar window treatments shall be hun9 or placed in or on any window on any dwelling located on the Property. 8. Party Wal. ls and Party Fences. The rights and duties of owners with respect to party walls and party fences shall be governed by the following: a. General Rule of Law to ADDly. Each wall or fence which is constructed as part of the original construction on the Property, any part of which is placed on the dividing line between lots shall constitute a party wall or party fence, and with respect to such wall or fence, each of 3 the adjoining owners shall assume the burdens an.d be subject to an easement for that portion of a party wall or fence within his or her lot boundary and shall be entitled to the benefits of these restrictive covenants and, to the extent not inconsistent herewith, the general rules of law regarding party walls and part~ fences and regarding liability' for property damage due to negligence or willful acts or omissions shall apply thereto. b. Sharing of Repair and Maintenance and Destruction by... Fire or Other Casualty. If any such party wall or fence is damaged or destroyed by fire or other casualty or by some cause other than the act of one of the adjoining owners, his agents or family (including ordinary wear and tear and deterioration from lapse of time), then, in such event, both such adjoining owners shall proceed forthwith to rebuild or repair the same to as good condition as formerly, in proportion to their respective use of the party wall or fence, c. Repa.irs of Damage Caused by One Owner, If any such party wall or fence is damaged or destroyed through the act of one adjoining owner or any of his agents or guests or members of his family (whet her or not such act is negligent or otherwise culpable) so as to deprive the other adjoining owner of the full use and enjoyment of such wall or fence, then the owner responsible for such damage shall forthwith proceed to rebuild and repair the same to as good condition as formerly, without cost to the adjoining owner. d. Other Changes. In addition to meeting the other requirements of this Declaration, and of any building code or similar regulation 'or ordinance, any owner proposing to modify, make additions to or rebuild his residential unit in any manner which requires the extension or other alteration of any party wall or fence shall first obtain the written consent of the adjoining owner and Declarant. e. Righ~ to Contribution Runs With ~and. The right of any owner to contribution from any other owner under this section shall be appurtenant to the l&nd and shall pass to the successors in title of such owner. 9. Insurance. By virtue of taking title to a residential unit in the Property, each owner covenants and agrees with all other owners and with Dec]arant that each individual owner shall carry all risk casualty insurance on the residential unit and other structures constructed on the lot, and include coverage for a home sharing a common wall and liability coverage of at least $300,000.00. Each individual owner also agrees that in the event that their dwelling is totally destroyed, the owner shall proceed 5 promptly to repair or reconstruct the dwelling in a manner consistent with the original construction. 10. Alternations tO Exterior. Owners agree that the exterior of all structures, including the garage, shall be maintained in accordance with the same quality and materials as the original construction. No alterations to the exterior of the dwelling, including an alteration in the color, shall be made without prior written consent of the other owner and Declarant. 11. Covenants Run With Land. These restrictions and covenants are to run with the land and shall be binding on all parties and all persons claimin9 under them for 30 years from the date hereof, at which time these covenants may be extended, or may be modified and extended, for successive periods of thirty years, with extension by a majority vote, and modification only by an unanimous vote, of then owners and Oeclarant, with the combined owners of each individual lot to cast one vote, and an instrument setting forth said extension or modification and extension is duly executed and acknowledged by said owners and Declarant voting in favor of the extension or modification and extension and duly filed with the Registrar of Titles in and for Hennepin County, Minnesota. Notwithstanding the foregoing, the covenants and restrictions applying to the party wall or fence shall continue in full force and effect as long as a dwelling with a party wall or fence is in existence on the Property. 6 12. Assiflnment. The Declarant may assign any and all of its r~ghts, powers, obligations and privileges hereunder to any other corporation, association or person. Such assignment, or -. assignments, are effective upon the recording and filing with the Registrar of Titles Office, Hennepin County, Minnesota of the instrument assigning the same. 13. Enforcement. EnforCement of these covenants shall be by proceeding at law or in equity against any person or persons violating or attempting to violate any of the covenants and restrictions, either to restrain violation or to recover damages, any owner or Declarant shall have the right to seek enforcement of these covenants and restrictions, and in the event such party seeking such enforcement shall be upheld by the courts, the defendant or defendants in such case shall be liable for the reasonable attorney's fees sustained by the plaintiff, together with court costs of such action, and the same shall, to the extent permitted by law, constitute a lien upon the property of such defendant. 14. Severability. Each of the provisions hereof shall be deemed independent of the others, and invalidation of any one of these covenants, or any part or parts thereof, by judgments or court order, shall in no way affect any of the other provisions hereof which shall remain in full force and effect. 7 IN WITNESS WHEREOF, the Declarant hereto has executed this declaration on the day and year indicated below. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE By Its President By Its Executive Director STATE OF MINNESOTA ) ) SS, COUNTY OF HENNEP[N ) The foregoing was acknowledged before me, a Notary Public within and for said County, this day of' , 1995 by Edward J. EricSson and Daniel J. Donahue, the President and Executive Director, respective]y, of the Economic Development Authority in and for the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. Notary Public The foregoing Declaration of Covenants is hereby acceDted as of the date hereof. THIS INSTRUMENT DRAFTED BY: CORRICK & SONDRALL, P.A. 8525 Edinbrook Crossing, ~203 Brooklyn Park, MN 55443 (612) 425-5671 8 ADDENDUM TO PURCHASE AGREEMENT This is an Addendum to that certain Purchase Agreement dated duly 20, 1995, by and between the Economic Development Authority in and for the City of New Hope as Seller and Carey A Luckeroth as B,~yer regarding certain property known as 7901 51st Avenue North, New Hope, Hennepin County, Minnesota. Seller and Buyer hereby agree as follows: 1. Conflicts. If there are conflicts between the language of this Addendum and the Purchase Agreement, the language of this Addendum shall control. 2. Assignment. Buyer's interest in the Purchase Agreement may not be sold, assigned or transferred in any manner whatsoever. 3. Wells. Seller certifies that Seller does not know of any wells on the described real property. 4. Financing. This Purchase Agreement is contingent upon Buyer qualifying for a first mortgage through Marquette Bank using the MHFA First Time Home Buyer Program, and also qualifying for a second mortgage using CHODO Home Funds, all as detailed in the attached Financing Addendum. If Buyer does not so qualify, this Purchase Agreement shall be null and void. 5. Construction of Dwelling. By this Purchase Agreement, Buyer will be purchasing real estate that by closing will be improved by Seller with one dwelling unit of a two dwelling unit twin home. Seller agrees, through its agents or employees, to construct one dwelling unit on the real estate in accordance with the plans and specifications as set forth in the attached Addendum 1. 8. Change Orders. Any changes in plans and specifications set forth in Addendum 1 shall be allowed only upon written authorization by both Seller and Buyer. If the change order will require the furnishing of extra labor or materials, Buyer shall pay Seller for the additional cost of the labor or materials by increasing the Purchase Price or some other method acceptable to Seller. A change order reducing the cost of labor or materials will not result in a Purchase Price reduction. 7. Options. Any items listed as options in the plans and specifications attached as Addendum 1 shall be considered a change order requirin9 the furnishing of extra labor or materials and shall not be included in the construction without following the procedure for change Orders set forth above. Landscaping. Landscaping shall be completed by closing b? Seller or its agents ~n accordance with the Landsoap~ng z',a~ attached hereto as Addendum 2, 9, Closin~ Delay, In the event of delay, the time completion of the construction and closing shall be extended for such reasonable time as needed to complete construction of the dwelling. Seller shall have no liability to Buyer for any such delay. 10. Warranty. At the closing Seller shall assign to Buyer all warranties which Seller can assign that are associated with the dwelling and its contents, including all appliances. 11. No Agents. Seller and Buyer each represent to the other that they have engaged no agent to represent them in this sale/purchase, and Seller and Buyer agree to indemnify and hold the other harmless from any claims of any rea estate or other agent claiming through the one making the indemnification. Dated: ~[~ Z.O , 1995. ECONOMIC DEVELOPMENT AUTHORITY ~ IN AND FOR THE CITY OF NEW HOPE, Sel let trts Execdt"ive Oirector Carey roth, BuYer c:\ w p51\cnh\7901.&dd CFTY OF N'Ew HOPE SPECLFICATIONS FOR FL~X;DIC.kPPED .-XCCESS[BLE TWLN HO.%IF AT 7901 & 7909 51ST A~N~ NOR~ N~W HOPE, ~SOTA ~e C~tv of New Hope ts see~ing quotes on the following work to be done m constructing a h~dicapped accessible twin home - each umt ~o be 127g squ~e feet. ~e following specs ~e for each ~t: BASE B~ A. Sidinff ~. Alu~um with ~u~um soffits & f~cia. Include Tyve~ on reside & outside comers. B. BHck [. Per PI~. $365.~/1~, Maten~ Allow~ce. 2. Fl~hmg at top of bnck C.. ~fe ~r i. 16' x 7'6' Stol p~el~ d~r w/low helm ~t. D. G~ee ~r O~n~ t. [/2 HP wi~ 2 cont~ls 1. R 45 Auic blo~ 2. R 19 ~ion b~ m w~ls P~ w~l w/RI I ~i~ 6. ~d cbsnn~l 1~ on w~ cl~ to W~ Av~ ~ ~ on ~ sid~ of ho~ combo w~ F. ~b C~ t. ~1 ~tom ~ ~ m ~w~ 2. 2 ~ ~ 5. B~ ~ ~ ~ ~ ~1 & ~c ~ 1. C~ ~: ~~'1 & 2, li~ ~ 2. V~yl m: u~iv/l~ ~ dini~ ~2, ~ ~ ~ 3. Ce~c tile ~: b~m Addendum I Flooring continued Carpet Specs: Horizons [ndusmes Commercial Carpet "Perfect Spec' ~-1195. 30 ounce w svntheuc nar and jute pan:or equal. Provtde specs on subsumtes. Vinyl Specs: Armstrong "Fundamental Solarian" over cement slab. Cerarmc Tile I floor') Specs: American Olean. Porcelain ceram'c Mosaics unglazed floor tile wlth 2x2 abrasive grmn - slip resistant surface or equal. Provide specs on substitutes. Closet Shelvin~ l. Include a full width shelf in all clothes/coat closets at height to be specified by the homeowner. An additional shelf to be installed a~ a lower level, approximately 1/2 the length of the upper shelf. K. Ceramic 1. Bath floor w/2x2 abrasive American Olean 2. Roll in shower floor - 2x2 abrasive American Olean 3. Shower walls to six feet high w/standard $2.30/sq. ft. wall tile materials allowance 4. Include wall tile awund the tub, 18' high w/standard $2.30/sq. ft. wall tile materials allowance 5. Include ceramic, four piece fixture set, installed. L. Mirror 1. Bath, full width of vanity top and dO' high M. Count~ Tom 1. Bathroom - Cultured marble top with cuatom bowl locafio~ & low profile, 1 splashe~ to allow m/riot to be installed a~ a Iowa' height. 2. Kitchen - Lam/zm~ with self edge N. Curtain Rod I. Cu,qtOIII, stsinlq~, ~il"ved. O. Heal/ne 1. 80~ Efficient furnace, Leunox 2. Honeywell chtoeotherm 3. Bath & laundry ex]lm~ ve~s i~mfl~ed & ducted to exterior of bu/ldin~ 3. Ve~ dryer 4. One i~ supply/hook up oee al~pliaaee Lem~ox air coad/lioeet (loeamt in rear yard) & uadet~ou~ be~ system P. 3. ~ ~ - ~ reel. 2 couqaanumm w/Moe~/r7831 4. Ba~ vm/~7 fameL Mcca #4407 6. Bath mb - ~ Villialet (white) 7. Shower valve faum- Ahoa ~ held wt~h a 48" ~lide oi~)oui - Sadder ~ SS Oi~x~ai 9. Rough in for future lawn qmuklet lmok-up 10.Olle fYO~..l)KlOf allli-$ipi~ exler/ol' ho~ bib loe, a2d 18" aJ~)ve ~1d2 ~ di,i,~ & livtn~ room 1 I. Wrap pipe, uudet kitchen md baek, oom sinlu 12. Dishwa.~aet & wa,shin& mar. hine hook-up Q. Electrical ,. '5,) ~,.%I?. [~o~ rocker der<es, v,~re one appi~ance. 3 phone .~acks. ~ cab. s~'~tcNes. ~r cond~uoner ~mng. i l0 CFM bath f~. dishw~Ser & dlspOS~ 'x ~rmg 2.Locae se~'~ce box ~n the g~age ~'tth ~he mmn brewer a m~imum o~ ~8" off tSe floor 3.Oue g~age ~oor opener outlet, w~re ~e g~age fire door for a ~mre auto door opener. not noted on the pl~ Rough m ~inng for ~mre secun~ system R. Nl~on~ t. Slab on grade, fo~dation per pI~, lOx12 patio & sidew~k to dhveway t~" slab over ~" cle~ w~h s~d S. L~ber ~derson c~ement~, siz~ ~r pl~, w/~e t~dem l~ches (fl~hmg ~ windows per ~uf~mre~ s~ificatlo~) 2. Exte~or - front ent~ ~ s~ p~el stol ~, w/8' sideli~t, w/~lf clos~g hinges double ~ for d~lt & lever - fire d~r = six p~el stol w/self closing ~g~, double ~ for de~lt & lever - 3° swing d~r wi~ ~1 view ~s lite & ~lf clos~g ~S~, double de~lt 3. Interior d~ - fl~h o~ w~ei~r lever h~, p~v~ lach~ on mte~or d~ to 2 4. D~wal - w~ls ~ & ~, ~y for p~t - sp~y~ ~fl~gs - g~e w~~g - ~l~ly ~k~ & ~ ~ o~ ~ 5. ~te~or ~ ~ ~ 6. M~lwork - 1/2' ~o~ - ~ovide w~ ~omi~ ~ for ~ 7. W~I ~~on ~ li~ ~m of 7~ 51~ Av~ ~t (~ bl~ - T. 1. O~ ~ ~ ~m ~~, h~ ~ Ho~ 3. C~ p~ 4. 4 Roll ~ ~ 5. I ~1~~ 8. S~ ~ h~ ~ ~ (~ b~ ~) 9. t0. ~' U~ ~, ~ p~ U Carpentry' Ins:ail cedar .'a~i:ng ar froac entre' 2. Wrap overhead garage door openings & ~1 ~'mdows ~'lth 2 x 6" ced~. :o be stoned 3. Se~ g~age gaNe touver ~on-venulaung du~y ~. Plywood w~ls in ~e ba~ sSower ~ea for grab b~ tnst~lauon 5. Supply backing for grab b~ at st~l ~ea 6. Supply bac~g for grab b~ at m~ ~ea 7. Inst~l ice shield over ~1 heated ~mons of building & roof edge ' g. Shim windows, per m~uf~mrers s~s 9. Instal sill se~ under al window sills 10. [nst~l sill se~ under ~1 ~ttom plates on ~nmeter d~ i 1. Inst~l wea~ergu~d proration at sidewaY, patio & ent~s t_. [nst~l 6 fixed atic r~f vents & tO fix~ ~ffit ven~ 13. Shower, mb, stol su~o~d ~a built for existmgl~e gr~ b~ ~pli~ces V. Paintinl/~iffi~ t. St~, ~ & v~sh~ w~work 2. ~me~ & p~t~ w~ls 3. P~t g~e 4. Exterior s~ini,g, g~ t~ ~ g~ d~, g~ w~ws, en~ ~ r~ system 1. Asph~t. ~' wi~ to ~ s~i, n~ 2. Remove existing ~ ~t ~ ~veway 1~ on W~ Avm~ 3. ~t~l 5' x 56' sid~ ~m W~ Av~ ~ ~. I~ 5' x 30' si~w~ ~ong 24' g~ ~ 4' x 4' si~ ~ong 4' m~ to ~v~way X. ~w~ · Wa~ ~. Ci~ ~ ~ ~mib~i~ for l~, ~e ~ w~ ~ ~m~ble for · e ~m ho~. ~ ~t l ~e ~ ~ e~ ~e 4' ~ ~ 1" w~r ~ m ~e building. 2. ~e b~ ~ ~~ ~ ~~ ~ ~ Io~ ~ N~ ~o~ ~blic Wo~ (5334823). Y. 1. G~ or ~ ~ ~ ~ ~ m ~ ~t Z. I. ~ Ci~ ~ ~, WAC ~ SAC ~ bM. ~~ m~l ~ fog ~ el~ ~t ~. - B~. ~cl~ $2,~ ~~ ~ow~ m bid CC. ~1~ a $750 li~ ~ow~ m ~ bid N~: ~mg ~ ~ ~ ~ ~1~ ~ ~ ci~ ~ ~d mt ~ ~1~ ~ ~e bid. T~.e fo[io~,'tng a~e a ttst of options [ha[ mas' be requested by the purch~ers of [he twin home. Eqese no~ be included tn ~e totM bid ~ount listed on the previous page. If ~y of these options ~e requested. be the buyers respo~bili~ to pay for chem. OPTIONS: l, Vsrhirlpool = $ 2. Security System = $ 3. Retractable doors at the kitchen sink cabinet -- $ 4. Fireplace (gas) -- $ 5. Fold down laundry table $. 6. Exterior sprinker system $ 7. Fold down shower seat $ 8. Gerber 'highliae' accessible stool $ x,'ame or' Company' Comact Person Address Telephone Number Signature of individual subtmttmg quote PLEASE RETURN QUOTES BY 11:30 A.M. TUESDAY, APRIL 4, 1995, TO: Sarah Bellefuil City of New Hope 4401 Xylon Avent~ North New Hope, MN 55428 The quotes will be considered by the New Hope City Council az ~ Monday, April 10, 1995 Council m~etmg. All work is to be completed by August 15, 1995. The lowest respomibte bidder will be expected to emer into a contract with the City to ensure the completion of : the work in a timely manner. Payment will be made by the City upon acceptance of the quality and completion of all the work. " LANDSCAPE $CI-I~EDL~E 7901 & 7909 51ST Quantity; Common Name; (Botamcal); Size; TR~E$: 7 Black Hills Spruce "BHS" 6' b & b (Picen glaucn densata) 3 Red Splendor Crab "RSC'* 2" b & b (?vlalus "Red Splendor") 3 QuakinI Aspen "OA' 2" b & b (Populus tremuloides) Red Oak "RO" 2 I/2' b & b (Quercus rubra) 2 Oreenspire Linden "GL" 2" b & b (Tilia cordatn' 'Greenspire") SHRUBS: 53 13 Scandia Juniper "SJ" 24' - 5 gal. (Junlperus sabina "Scandia") 6 Dwarf Korean Lilac "DKL" 24". 5 gal. (Sytinsa ;.dl~nhna) 7 Goldflame Spirea "(;S" 18" - 2 ~al. (Spirea Japonica Goidflame) 12 Alpine Currant "AC" 24" - 5 gal. (R2'oes alpinum) 3 Charks Joly Lilac "CJL" 36" - b & b (Syrinfa v~pm ¢ 3 Ameriean Cranberry Bush "ACBw 36' - b & b (Viburnum trild2uxn) 9 Tantoa Yew "TY" 24' - b & b P, 06/07 ..... ,','U' '.', ..... o-=.,~ ~ ~ .... WELL DI-~CLOSURE STATEMENT This form approved by 3 A'['rACHED HERETO AND ~DE A ~ART HEREOF - ~.~ ...... ~ ~ ;hat bcforc signing an agreement to sell or t~nsfer real prope~, the Seller ' ~ -,: :',vermg ~o the Buyer either a statement by the Seller that ~e Seller ~oes not kn~ of any - ~ ~, :~ sc~ocure cta~ement indi~tin9 the legal description end ~un~. and a map showing the - r _. ,s~,scfos~re statement the ~eller must indiGte, for each well, whether th~ well is in use, :: -. .~ d,~;~;~ [i~e existence of a well at the time of _'_,'J:'_ ~ Df A wo: :s h~Di~ to the Buyer for cos[s relating to the sealing of the well an~ reasonable attorney f~s for :c~c,~ of co.ts from the Seller, ~ the action is ~mmenced within six yea~ after the date the Buyer closed the : ,~ase of the real prope~y where the wail is located. ': l~tructio~ for completion of this faa a~a on the revere ' 5 PROPERTY DESCRIPTION ;~ Street Address, City, Count: 79.01 51st Avenue N~h. New ' 7 LEGAL DESCRIPTION '=~ O~. ~1 ]~ STATEMENT (Che~ ~e a~o~o~r~ ~.) .... :. r-; .:.,r, s smacked, then skid to the last line and sign a~ ~ate ~ii s~tement.) . . L'v.:;i Year of Well IN USE NOT IN SEALED L~epU~ Const. Ty~ UGE -- : 48 feet 1900 eel- Unkn~n , ~ALED '~ELL INFOR~TION F;,. ~ch w~tl designated as ~aled a~ve, ~mplete thi~ ~ion. ~/h~n Was ~he well seale~? Ma~ 1, 19~ _-~ V~ho sealed the well? Don StOols Well DrIl!l~ ~.. Inc. }0 was a Seal~ Well ~e~ fll~ wAh the Minne~ta Depa~ment of H~lth? Yes iX] No [ ] MAP Complete ~e a~che~ map ~h~ing the I~tlon of ~ch well on the mai pm~. ~CERTIFICATION BY ~ELLER ,~e~¥ ~h~t the mformaU0n provided a~ve Is a~u~ta and complete to the ~ of my knowledge. E~ec. DIr.,N~ Ho~ EDA ~-~: ~;~. ~ ~'~w',, (D~) (~ ~ ~ ~~) (~) (Date) (Buyer) (Data) ,- "~;:..iHAL COPY TO LImitING I~IROKER; GOPIF.~ TO ~II~LLB, BUYER, 8~.IJ. IN(~ BROKER ~D~IIBIT B · P, 07/07 ....... ~m~, U',F NEW ~ t~3'.'7~.1. ~ EDA ~ REQUEST FOR ACTION Orlglnatlng Department Approved for Agenda Agenda Section City Manager EDA 8-14-95 Sarah Bellefuil ~) Item No. By: Administrative Analyst By:~ 3 RESOLUTION APPROVING CHANGE ORDER FOR CONSTRUCTION CONTRACT FOR 7901- 7909 51ST AVENUE NORTH (IMPROVEMENT PROJECT NO. 505) On April 10, the New Hope City Council approved a building construction contract with Equal Access Homes, Inc., to build a handicap accessible twin home at 7901-7909 5lst Avenue North. When construction began at the site, certain excavation and soil problems were discovered. Because of these problems, and in order to provide a proper foundation for the twin home, additional costs totaling $767.00 were incurred. This cost includes additional excavation, extra footings, extra block, and additional sandfill. These costs were not caused by Equal Access Homes but were necessary for the successful construction of the twin home. The Building Construction Contract the EDA signed with the builder, Equal Access Homes, requires EDA approval of any change orders. Staff recommends approval of the resolution. MOTION BY '~",~t~''~ ~ SECOND BY ~ Review: Administration: Finance: RFA-O01 ~ -G-~ 7,~i] ;0:58 P, 02/02 EOA RESOLUTION NO. 95- RE$OLU]'tON APPROVING CHANGE ORDER FOR CONSTRUCTION CONTRACT FOR ~901 - 7909 51ST AVENUE NORTH '?:..]_.'j:]]. ~h~ ~conomtc Development Authority in and for the .... .: ;;~ ~ooe (EOA) h~s entered into a Building Construation ~:. -..,:~ ~qual Access Home~, inc, (Contractor) to construct a ....~-..:.:-:.: o,~ Lot5 1 and 2, B3ock 1, MarKy Addition, and Y&UEREAS, when construction began certain excavation &nd soi3 problems were d~scoYered~ end ~_HEREA~, ~n order to provide a proper foundation for the twin home ~dd~t~ona] costs totalling $7~7,OO were incurred by the Con(r~ctor, &s itemized on the Contract Change Order attached hereto as Exhibit A, and ~HEREA~, said additional costs are necessary for the successful construction of the twin home, and ',U;-~EREAS, such ~dditional COstS were not the resoonsibility or .... ~ ...... ~y dhe Contractor, and .'._:"'-,-, *ne Bu-ildin9 Construction Contract requires a signed ~, ~,-¢ ~.~ such addit~onsl costs. ........ , -.~]REFORE, ~E IT RESOLVED by the Economic Development .;".:r'~?/ ~2 ~nd dot the City of New ~ope aa t. The change order attached hereto as Exhibit A is &pproved, and the President and Executive Dtrec[or are authorized and directed to sign the change order an De~f of the EDA. AdOpted by the Economic Develooment Authority in and for the City of New Hope this .. day of ,., 1995. n Edw. J. Erickson, President ¥~i;.-'i-],~ J. Oonahue, Executive Director Contract Change Order · FROM: ~ NO. EQUAL SS HOMES, INC.~ [ Page I of 1 'DATE INVER GROVE HGTS, MN. 55076 JULY 28. 1995 JO8 I TO: I 7901 & 7909 - 51st AVE NORTH ! CONTRACT JOB NO. CITY OF NEW HOPE ~505 PREPARED BY 4401 XYLON AVE NORTH WORK TO NEW HOPE, MN. 55428-4898 BEGINBY / / j wo~ ~o~ ? CHANGE ORDER FOR BUILDING CONSTRUCTION FOR 7901 - 7909 51st AVENUE NORTH This change order shall alter and amend that certain Building Construction Contract for 7901 - 7909 51st Avenue North by and between Equal Access Homes, Inc., a Minnesota : corporation (hereinafter Builder), and the Economic Develop- ment Authority in and for the City of New Hope (hereinafter Owner) dated April 26, 1995. 1. The plans and specifications for the construction of the dwelling on the property shall be amended to include the following as additional construct- ion for the 7901 & 7909 units, due to existing bad soil conditions: a. excavation - $146.00 b. extra footings - $75.00 c. extra bloCkw~rk -.$366.00 d. eX~ra~sandfill - $180.00 The-work:covered by t~s u~der in ~e Ori~nal Contract Cha ge 169,808.00 BY $ 767'00 · E '$ '170 '575 00 ~ E-Z ~tr~ ~rms FORM NO. EZ 1 14 Blue: builder By: ~[99n: homeowner