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082895 EDA Official File Copy CITY OF NEW HOPE I EDA AGENDA I EDA Regular Meeting #13 August 28, 1995 Agenda #14 President Edward J. Erickson Commissioner W. Peter Enck Commissioner Pat LaVine Norby Commissioner Gerald Otten Commissioner Terri Wehling 1. Call to Order 2. Roll Call 3. Approval of Minutes of August 14, 1995 4. Discussion Regarding Financial Assistance Request by Gill Brothers Funeral Chapels, Inc. (Improvement Project No. 523) 5. Resolution Repealing the Bass Lake Road Housing Redevelopment Project No. 541 6. Resolution Authorizing the Purchase of 5559 Sumter Avenue North (Improvement Project No. 541) 7. 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) 8. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes August 14, 1995 Meeting #12 CALL TO ORDER President Erickson called the meeting of the Economic Development Authority to order at 8:06 p.m. ROLL CALL Present: Erickson, Enck, Otten, Norby Absent: Wehling Staff Present: Sondrall, Hanson, Donahue, Leone, Bellefuil APPROVE MINUTES Motion was made by Commissioner Norby, seconded by Commissioner Enck, to approve the EDA minutes of July 24, 1995. All present voted in favor. Motion carried. IMP. PROJECT 541 President Erickson introduced for discussion Item 4, Discussion Regarding Item 4 Relocation Assistance Requirements for Bass Lake Road Extension Housing Redevelopment Project (Improvement Project No. 541). Mr. Dan Donahue, City Manager, stated at the last EDA Meeting staff was directed to review the relocation assistance requirements under state and federal law and report back. He commented that the original estimated. relocation costs ranged between $200,000-250~000. Minnesota Statutes requires the EDA to pay relocation assistance to displaced property owners regardless of the fact that acquisition is by negotiation and not condemnation. He stressed that the EDA will not be condemning p~operty or forcing property owners to sell but only acting as a willing buyer when property owners are willing to sell. All properties will be appraised prior to purchase. He pointed out that the EDA could offer to purchase properties based on appraised values without negotiation and in addition the seller would receive relocation benefits. Without negotiating for higher prices, certain savings could be realized to offset the anticipated $200,000 relocation benefits. President Erickson expressed support for the EDA taking the fore- mentioned position for purchasing properties. Mr. Donahue mentioned that if the property owner's appraisal is higher than the EDA's appraisal, a certain amount of negotiation may be undertaken or a third appraisal may be necessary if there is a large discrepancy. Commissioner Enck reviewed the history and the fact that the City did not initiate the project but rather responded to a request from citizens. He opposed paying relocation costs which are typical expenses incurred whenever anyone voluntarily sells their home and are not an expectation of the current property owners. He asked that legislators be informed of the inequity of the relocation assistance requirements. He suggested abandoning the project and only purchasing homes as they become available. New Hope EDA August 14, 1995 Page 1 Mr. Steve Sondrall, City Attorney, stated the City would be responsible to pay relocation assistance benefits in all development projects except scattered site development projects. He noted the City may choose to abandon the project as it may never materialize. In that regard it would be scattered site development rather than site specific. The EDA questioned the intent of the legislation regarding relocation assistance requirements and noted it is only reasonable in condemnation situations. Mr. Sondrall pointed out that the City could still purchase the property at 5559 Sumter Avenue on a scattered site basis since acquisition of the property is necessary in order to proceed with the City's objective to realign Sumter Avenue. Mr. Donahue recommended tabling Items 4, 5, and 6, until August 28th to allow the City Attorney and staff to present a recommendation at that time. MOTION Motion was made by Commissioner Norby, seconded by Commissioner Item 4 Enck, to table discussion on EDA Agenda Items 4, 5, and 6 until August 28, 1995: Item 4: Discussion regarding relocation assistance requirements for Bass Lake Road Extension Housing Redevelopment Project (Improvement Project No. 541). Item 5: Resolution Authorizing the Purchase of 5559 Sumter Avenue North (Improvement Project No. 541). Item 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 ). All present voted in favor. Motion carried. IMP. PROJECT 505 President Erickson introduced for discussion Item 7, Public Hearing - Item 7 Resolution Authorizing and Approving the Sale of 7901 51 st Avenue North to Carey A. Luckeroth (Improvement Project No. 505). Ms. Luckeroth has signed a purchase agreement for $85,000. There was no one present to address the EDA for the public hearing. MOTION Motion was made by Commissioner Enck, seconded by Commissioner Item 7 Otten, to close the Public Hearing on Improvement Project No. 505. All present voted in favor. Motion carried. EDA RESOLUTION Commissioner Enck introduced the following resolution and moved its 95-15 adoption: "RESOLUTION AUTHORIZING AND APPROVING THE SALE OF Item 7 7901 51ST AVENUE NORTH TO CAREY A. LUCKEROTH (IMPROVEMENT PROJECT NO. 505)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Otten, and upon vote being taken thereon, the following voted in favor thereof: Erickson, Otten Enck; New Hope EDA August 14, 1995 Page 2 and the following voted against the same: None; Abstained: Norby; Absent: Wehling; WhereUp°n the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. IMP. PROJECT 505 President Erickson introduced for discussion Item 8, Resolution Approving Item 8 Change Order for Construction Contract for 7901-7909 51st Avenue North {Improvement Project No. 505. Mr. Donahue explained that excavation and soil problems necessitated additional costs for corrective action including additional excavation, extra footings, extra block, and additional sandfill. The total cost of the change order is $767, and the City will seek reimbursement by the demolition company. Commissioner Norby questioned the funding of the project. Ms. Bellefuil reported that the project was funded by: sale of the property, HOME grant funds, CDBG scattered site house funds, and EDA funds. Ms. Bellefuil invited the Council and public to an Open House of the twin home scheduled for Thursday, August 17. Commissioner Otten suggested obtaining a floral arrangement from a local florist for the Open House. EDA RESOLUTION Commissioner Enck introduced the following resolution and moved its 95-16 adoption: "RESOLUTION APPROVING CHANGE ORDER FOR Item 8 CONSTRUCTION CONTRACT FOR 7901-7909 51ST AVENUE NORTH TO CAREY A. LUCKEROTH {IMPROVEMENT PROJECT NO. 505). The motion for the adoption of the foregoing resolution was seconded by Commissioner Otten, and upon vote being taken thereon, the following voted in favor thereof: Erickson, Otten Enck; and the following voted against the same: None; Abstained: Norby; Absent: Wehling; whereupon the resolution was declared duly oassed and adooted, signed by the president which was attested to by the executive director. ADJOURNMENT Motion was made by Commissioner Enck, seconded by Commissioner Otten, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:32 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA August 14, 1995 Page 3 EDA  REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA  8-95 Kirk McDonald Item No. By: Management Assistant By: 4 / DISCUSSION REGARDING FINANCIAL ASSISTANCE REQUEST BY GILL BROTHERS FUNERAL CHAPELS, INC. (IMPROVEMENT PROJECT NO. 523) At the June 26th EDA meeting, the EDA discussed a Purchase Agreement submitted by Gill Brothers Funeral Chapels, Inc. for the City-owned property at 42nd and Nevada Avenues. The EDA indicated an interest in the proposal and directed staff to meet with Gill Brothers to better define the plans and their request for City financial assistance. The staff and City Attorney met with representatives of Gill Brothers and Miller Funeral Home Design/Construction on July llth. The initial site plan showed the building located to the far east side of the property, with parking on the remainder of the parcel and three curb cuts onto 42nd Avenue. The prospective purchasers had contacted Hermepin County about the curb cut issue and were informed that the County will only allow one curb cut on 42nd Avenue. Therefore, Gill Brothers indicated that they would need to revise the site plan and move the structure closer to the center of the property. This will necessitate the moving of the existing 36 inch RCP storm sewer crossing to the middle of the site. It was determined that the following steps would be taken to better define their proposal/request: 1. City Engineer would provide Miller Funeral Home Design/Construction with cost estimates regarding the cost to relocate the storm sewer. 2. Gill/Miller would incorporate these costs into their total project costs. 3. Once total project costs were known, Gill would make a formal request to the City for financial assistance and present revised site plans. In an effort to continue negotiations/cooperation on this proposed development, the City Attorney recommended that Gill Brothers and the City execute an Exclusive Negotiations Agreement regarding Review: Administration: Finance: RFA-O01 ~ Request for Action 2 8-28-95 the property, which the EDA approved on July 24th. The Agreement provides Gill Brothers Funeral Chapels, Inc. the exclusive right to negotiate a Development Contract with the City for the property over the next 90 days. The Agreement lays out the rights and obligations of each party during the 90- day period and states that if an agreement cannot be reached, the obligations of each party under the Agreement will terminate and neither party shall incur any obligation to the other in such event. In August the City Engineer provided cost estimates to relocate the existing storm sewer and, per the attached fax/sketch, the estimated cost to relocate the storm sewer is $30,000. Gill Brothers and Miller Funeral Home Design & Construction incorporated these costs into their total project cost and have submitted the attached Financing Package for consideration, along with revised site plans. The total project cost presented is $995,000, including construction, bond costs, furnishings and soft costs. The loan request is for $900,000 at an interest rate of 9 1/2% over 15 years, with owner cash injection of $95,000. The City also has contacted the Bond Consultant to determine specifically what project costs can be paid for with 42nd Avenue tax increment funds and options for financial assistance, per the enclosed letter. The types of expenditures that are eligible for TIF assistance with the development of commercial property are land acquisition, construction or relocation of public utilities/streets/sidewalks, public charges related to the development of the site such as permit fees and sewer/water connection charges, and site improvements such as grading/soil correction/landscaping. TIF funds cannot be used for an interest rate write down on commercial developments except for affordable housing projects. The Bond Consultant has suggested considering the following options to assist Gill Brothers with TIF funds: 1. Eligible costs being paid by the EDA or reimbursed to the developer as pa. id. 2. EDA reimburse developer for certain eligible costs paid by the developer upon completion of construction. 3. EDA reimburse developer for eligible costs from the tax increment as it is received from the developed property "pay as you go" financing. Staff requests that the EDA provide direction to staff on how to proceed with/respond to the proposal from Gill Brothers. 3335 West St. Oernnatm {6~2} 25~-4109 Finanacing Package Specially Prepared for GILL BROTHERS FUNERAL HOME NEW HOPE, MINNESOTA August 10, 1995 Miller ~ HOM~ DESIGN CONSTRUCTION GHJ. BROTItFA~ FUNF. R~I. HOMF. NEW HOPE, MINNESOTA The proposed CdJl Brothers Funeral Home, owned by Neil and Dan McCrr'aw, wdl be located om 1~ acres of land ia New Hope, Mianesota and will complement the adjacent properties. k will prov{de necessary hand{cap accessible features and meet all local, state, ADA and OSHA gu{delines. The £unecal home has been designed to include the followi~: free parking ama w{th 66 parking starts. The buildin8 exterior will be brick venee~ with aluminum soffits and facia aad a shi~led roof. The entr-a~ce canopy will accommodate enmmng and exiting the funeral home dumag M~esota ~ inclement weather, .. The fumet~ home has been des44gned to include lobby, recept~o~ ama, work office, visitation room, music room, arrange, merit office, lounse a~a, children.~ room, men ~ and women ~ reslroom facilities, prep room, mechanical room, and garage. There will be one large visitation room with seating for 200 people. The room has beea designed with coffered ceil, soffit [ishri~8 and individual visitation s~orage areas. It also has a sound proof folding patxitiom to divide this area into ~vo visitation chapels if desLeY. The large casket display room will easily exhibit 20 caskets and have an alter~ate selectiom room for c~m~on. GILL BROTI4F.~ FUNERAL HOME ~ HOPE, MINNESOTA LO~ ~ Loan to consist of a construction loan that wi~ roll into permanent financing of the project: Total Construction Cost ............................ $700,000 Land Cost ....................................... 200,000 Furnishings ....................................... 75,000 Soft Costs ........................................ 20.000 TOTAL PROJECT COST ........................ $995.009 CITY FINANCING (Buy Down): ~. Loan Request ................................... $900,000 Interest Rate .................................. ~ .... 91/2% Loan Amortization ................................ 15 Years Interest Rate Fixed ............................... 15 Years Owner Cash Injection ................................ 95,000 MU.I.F.R FUNERal. HOME DESIGN & CONSTRUCTION ST. C:LOUD~ MINNF. SOTA A t~R~:F' SK~-"rCH High quality construction has been the cornerstone of Miller Funeral Home Design & Construction, a subsidiary of Jim W. Miller Construction, since 1955 when Jim W. Miller founded the trmn in St. Cloud, Minnesota. Initially a general contractor specializing in agricultural and residential projects, Miller Construction evolved through planned growth and pursuit of oppommity into the leading commercial developer in Central Minnesota. Chairman of the Board, Jim Miller, himself the descendent of skilled tradesmen and the son of a successful contractor, has built the reputation of the f'um upon sound design and construction techniques used by highly trained and experienced personnel. Miller Construction has become adept at f'mding useful applications for new building technology and resources while anticipating market and client needs. Miller Construction remains a people-oriented company with management policies that encourage individual creativity, initiative, and contribution throughout the organization. Hard work is encouraged and rewarded within an informal, unstructured climate which allows individuals to achieve both personal and clearly stated company goals. Miller Constructions' objectives and activities are linked to its design/build concept. The design/build concept is a combination of services and products which basically is a one-step construction service. The staff of highly trained Financial Consultants, Architects, and ~ojec. t Managers work together for the successful completion of a client's project. The economies of scale and coordination can save a developer cost and time. (A Brief Sketch, cont'd) Miller Construction has developed many large scale projects in the areas of commercial, industrial, and residential construction. These projects include funeral homes, condominiums, apartments, motels, restaurants, office parks, manufacturing plants, and warehouses. Under the operational control of management, the Architect, Development Consultants, and Project Managers assist businesses of all sizes. A few of the funeral homes completed by Miller Construction include: Green Funeral Home, Skroch Funeral Chapel, Anderson Funeral Home, Boldt Funeral Home, West Kjos Funeral Home, Kapala-Glodek Funeral Home, Holcomb- Henry-Boom Funeral Home, Major-Erickson Funeral Home, Bonnerup Funeral Home, Wight & Fox Funeral Home, Westgor Funeral Home, Minnesota Valley Funeral Home, Rowe Funeral Home, Winberg-McLaughlin Funeral Home, Cambridge Funeral Home, Kaiser-Corson Funeral Home, and Sturm Funeral Home. - OWV/hnh GV080O. 1 DORSEY ~c WHITNEY PROFESSIONAL LI>IITED LIABILITY P.kRTNERSHIP XE~ YOEK PILLSBL'~Y CENTE~ SOUTH SEATTLE ~ASHINGTON, D.C. g20 SOUTH SIXTH STREET MINNEAPOLIS, MINNESOTA 5840a-1498 ROCHESTER, MN DENVER (612) 340-a600 BILLINGS ORANGE COL'NTY, CA FAX (6la) 840-a868 GREAT FALLS ~O~DO~ MISSOULA HONG KON~ (612) ~2~ August 11, 1995 Mr. Daniel Donahue City Manager City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 Dear Mr. Donahue: You have advised me that the City of New Hope owns certain property. located on 42nd Avenue North in the City that it is negotiating to sell to Gill Brothers Funeral Homes. Gill Brothers is proposing to construct a new funeral home on the site. The site is located in the 42nd & Winnetka Redevelopment Area and Tax Increment Financing District of the New Hope EDA, and it is anticipated that Gill Brothers will request that the New Hope EDA provide tax increment financing assistance in connection with its development of the site. You have asked what expenditures with respect to development of the site are eligible to be paid from tax increment revenue. _The typical types of expenditures eligible for tax increment financing assistance in connection with the development of commercial property are land acquisition costs, costs relating to construction or relocation of public utilities and public streets and sidewalks, public charges required to be paid with respect to the development of the site such as permit fees and SAC and WAC, and site development costs for such items as grading, soil correction work and landscaping. In addition any costs relating to removal or remediation of any pollution on the site is an eligible expenditure of tax increment revenue. These eligible costs are commonly referred to as public redevelopment costs. In the past the New Hope EDA has established interest reduction programs and used tax increment revenue to write down interest on the developer loans which financed multifamily housing developments. Only low and moderate income housing developments are eligible for interest reduction programs, so that DORSEY & WHITNEY Page -2- Mr. Daniel Donahue August 10, 1995 type of assistance is not available for the development of the site by the Gill Brothers. Should the New Hope EDA determine to provide some tax increment financing assistance to the development there are a. number of ways in which the assistance can be structured. One structure would be for eligible costs to be paid directly by the EDA or reimbursed to the developer as paid. If this structure is used, the EDA will need security from the developer to ensure the development of the site is completed. A second structure would be for the EDA to reimburse the developer for certain eligible costs paid by the developer upon completion of construction. In this manner the EDA's money is not at risk if the construction is not completed. A third structure would be for the EDA to agree to reimburse the developer for eligible costs from the tax increment as it is received from the developed property. In this case the eligible costs would be paid by the developer, and the developer would not be reimbursed for such costs for a number of years and then only to the extent tax increment from the development is sufficient. This is commonly referred to as "pay as you go" financing and has been frequently utilized by cities in recent years. Should you have any further questions concerning this matter, please give me a call. Yours truly, 2 P: Gilligaq J JPG:cmn cc: Steve Sondrall FAX TRANSMISSION / Bonestroo Gr. Paul. Milwaukee Date: ~) Rosene 2335 West Highway 36 Our File No.: ~ ~_~ ~ Anderlik& St. PauI, MN 55113 From:~ ~ ~_{~ ~ Associates 612-636-4600 Pages To Follow: Engineers & Architects Fax 612-636-1311 Original Will Follow In Mail: Yes No Organization: Remarks: Note To Addressee: If you did not receive all of the pages in good condition, please advise sender at your earliest convenience. Thank You. For Office Use Only Fax then mail: Yes No Urgent fax immediately: Yes . No Call to confirm fax was received: Yes~ No Fax and return original to sender: Yes.~ Make copies for: File Others ....... Fax copies to (more thanone): Other' EDA REQUF.~T FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA ,~-28-95 . .. Kirk McDonald Item No. By: Management Assistant By/) 5 RESOLUTION REPEALING THE BASS/L/AKE ROAD HOUSING REDEVELOPMENT PROJECT NO. 541 The enclosed resolution repeals the Bass Lake Road Housing Redevelopment Project//541 and makes specific findings relative to the cancellation of the project. The resolution states that excessive development costs and the requirement to pay relocation expenses on voluntary property acquisition is the basis for the project cancellation. The resolution further indicates that this action does not terminate the EDA's policy of acquiring sub-standard housing on a scattered site basis and permits the acquisition of properties within the 541 project area despite its cancellation. The EDA postponed from its August 14, 1995, meeting its decision on the resolution authorizing the purchase of 5559 Sumter Avenue North and the 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. Action on these two agenda items are incorporated in the enclosed resolution. Specifically, it revokes the purchase agreement for 5559 Sumter Avenue and it rejects the appraisals for 7609 Bass Lake Road and 5520 Sumter Avenue. Therefore, the adoption of the enclosed resolution will eliminate any need for further action on these two agenda items from the last meeting. Staff recommends approval of the resolution. MOTION BY ~/~ SECOND BY Review: Administration: Finance: RFA-O01 hUG-25-95 FRI 10:58 P, 02/06 August 25, 1996 Kirk btcOonald New Hope Community Development Coordinator City of New Hope 4401 Xylon Avenue North New Hope, MN 55428 RE: Bass Lake Road Housing Redevelopment Project Our- Fite No. @9,29~3t Dear Kirk: Please find enclosed a proposed resolution repeelin9 the Base L~ke Road Houm~n9 Redevelopment Pro~ect #§41 for consideration at the August 28, 1995 Counci~ Meeting. Thio resolution makes specific findings relative to the ~noellation of project #541, Basically, excessive development costs and a requirement to pay relocation expenses on an apparently voluntary property a~quis{tion process is the basis tot %he projec~ cancellation, However, am pointed out ~n the resolution, this does not [erminate the EDA's policy of acquiring sub=standard housing on ~ scattered site basis. ~n fact, the resmlut~on permits the acquisition of properties within the 541 projoct area despite its cancellation, As we disc~ssed~ referring to the Bass Lake Road area as a (project) may be e misnomer anyway, Considering that the EPA has a stated public intention of not acquiring any o? these properties Dy condemnation a strong possibility exists that a project will not develop. A hnldout by one or two key property owners not will~ng to sell their property on the open market would cause ~he project to f~il ~nyway. The time uncertainty relating to the assemblage of the necessary properties for fha project renders itm v~billty questionable. ~n other words~ it is estimated that assemblage may take ~s lon~ as five years, and the EDA's in[entions ?or the use of these properties after said assemblage per~od may have changed as well. Therefore, to refer to the Base Lake Road area as a redevelopment project may be premature. AUG-25-95 FRI 10:59 P, 03/06 The EOA postponed from its August 14, lgg~ meeting its decision on the resolution authorizing the purchase of 55~9 Sumter Avenue North and the motion aocep'lin9 appraisals and authorizing staff to proceed to negotiate with property owners t~ purchase properties at 7609 Bass Lake RoAd and 6620 Sumter Avenue. Action on these two agenda items are incurpor~ted in ~he enclosed agenda. Specifica~3y, it revokes the purchase agreement for §5~9 Sumter Avenue and it rejects the appraisals for 7609 Bass Lake Road and 5520 Sumter Avenue, Therefore, the ~doption of the enclosed resolution wi33 e~iminate any need for further ~ction on these two agenda ~tems from the ~t meeting_ Contact me if you have any questions. Very Truly Your's, Oteven A. Sondrezlt CC, Yalerie Leone Daniel J. Oonahue * RECE I UE STOPPED ~U6-25-95 FRI 11:03 P, 02/04 EDA RESOLUTION NO, 95-~ RESOLUTZON REPEALING THE BA~ LAKE ROAD HOUSING RBDEVELOPMENT PEOJECT NO. 541 WHEREAS, the purpose of the Bas~ Lake Road Housing Redevelopment Project No. 641 is to replace deterioratin9 housing stock and to rep]at over-sized Arid under-utilized lots, and E~S, the Project was initiated by the unsolicited requests from two private property owners for the purchase of their single- family property by the New Hope Economic Development Authority, and WHEREAS, it was determined ~ number of problems experienced by the siLe area could be resolved by this project includina: 1. elimination of a narrow and inadequate access alley; renovation or replacement of undersized and deterioratin~ homes, soma without basements; 3. reuse of underdeveloped lots; 4. elimination of i~consistent and comDlaint-g~neratlng land uses; and WHEE.EAS, the site area consists of nine to thlrZeen properties 3ocated south of Bass Lake Road, north of §Sth Avenue North and east of Sumter Avenue North with the exception of two properties west of and abutting Sumter Avenue North~ ~nd ~HERE~, ~he New Hope EDA's intent for acquisition of these properties ~ to buy said properties as they become available for sale on the open m~rket without resort to its right of eminent domain u~der Min.~. Stat. Chap. 117, thereby avoiding the use of oondemnation for property acquisition~ and WHEREAS, it is understood assemblage of all properties within the project area may take years as property owners make their properties available for acquisition; therefore, a time schedule for project implementation Is uncertain including the potential for project failure if some properties d~ not become available on the open market or cannot be acquired by the EDA, and AUG-25-95 FRI 11:03 P. 03/04 WHEREA___~, Northwest Associated Con~uttant~, the City Planners, have submitted a May 5, 1995 planning report indicating that total project ~osts could range from 1.3 to 1.7 million dollars,'that the estimated return on thi~ investment after re~le of the Droperties may be only $400,000 to $650,000, ther"eby leaving a deficit to the EDA of $900~OOO to 1.O5 million dollars, and WHEREAS, the New Hope City AttOrney has confirmed the fact the project is subject to the federal Uniform Relocation Asmtstance And Real Property AcQuisition Act in hi~ August 9~ i995 letter opinion dempite the EDA'~ policy of voluntary aGquisition through direct negotietion on the open market with no use of condemnation. This is due to the fact M~nn..~tat._ §§117.50 through i17.521 ~ubjects this project to the Un~form Act arid the ACt itself hol~s o~ly volunta¢y transaction which are not part of a planned project or site specific are exempt from payment of relocation benefits, and WHER.E~S, the City Planners have estimated that relocation benefits for the project could be $260,000 and a relocation benefits consultamt, Evergreen Land 8er¥ices Co., has estimate~ these ~osts to be as high as $300,000 in its August 7, I99§ report suDmitted to City staff. These costs would include (~) replacement housing costs for homeowner-occupants, (2) moving expenses, and (3) closing ¢omts on new mortgages~ ~HEREAS, the New Hope EDA hereby f~ndm that implementation of the Bams Lake Road Development Project NO. 54t would not be in the best interests of the City of New Hop~ due to development costs which could exceed anticipated revenuom from the completed project of over I m~ll~on do]ler'~ and the requirement imposed on the EPA to pay property owner relocation benefits includSng replacement housing costs, moving coats and olosin9 ooets of $250,000 to $300,O00 on apparently voluntary transactions producing an unjust enrichment to wllling sellers intending to sell their property anyway on the open market, and WHEREAS, the New Hope EPA hereby finds it is stitl in the City's best interest to acquire substandard property on a scattered mite bas~s from voluntary and willing sellers to ~orrect zoning and land use problems eno eliminate deteriorating housing stock to insure high property values and above-average housing w~th~n the City, and WHEREAS, acquisition of property by the EPA for the purpose referenced ~n the preceding p&ragraph ~ et~lt ~uthor~zed by the EPA and may include any property within former Project No. 541. RUG-25-95 FR[ 11:04 P. 04/04 NOW, THEREFORE, BE ~T RESOLVED by the E6onomio Development Authority tn and for the C~ty of New Hope as 1. That the Bass I. ake Road Housin9 Project No. §41 iS hereby repea]ed and abandoned due to excessive cost and the requir'emen~ to pay relocation benefits in a voluntary transaction. 2. That any proposed purchase agreements for the ~cquisition of property at B559 Sumter Avenue North and 7621 Bass Lake Road for Projecl 541 are hereby revoked and that the Execulive Director' is hereby directed to ~nform the sellers accordingly. 3. That [he appraisals prepared for 7609 Bags Lake Road and 5520 Sumter Avenue North are hereby rejected for the purpose of establishtn9 a fair market value purchase price for said property for Project 641 due to the herein repeal of said Project. 4. That ~he Executive Director is hereby authorized continue any and alt negotiations with all willing sellers o¢ property to acquire property on behalf of the New Hope EDA t~ voluntary transactions on a soattered site basis to achieve all objectives of the New Ho~e EDA includin~ but not 14mised to~ correcting zoding ~nd land use problems, eliminating deteriorating sub-st~nd~rd housing and to guard ag&inst an eroding rex b~se caused by declining property values. Thls authority would include property With~ the former Pro,oct No. ~41 are~. Adopted by the E=onomic Development A~thor~ty ~n and for the C~ty of New Hope ~h~s 28th day of August, 1995. Edw, d. Erick$on, President At t est: Daniel J. Donahue, F×ecut~ve D~reetor 3 , ~ EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA 8-95 Kirk McDonald Item No. By: Management Assistant By: i//// 6 RESOLUTION AUTHOR/ZING PURCI(tASE 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. A review appraisal was completed on this property by the Hennepin County Assessor who works in New Hope and he has prepared the enclosed letter confu'ming that the $62,000 is a reasonable Fair Market Value. Staff met with the property owners on June 28th and on July 5th submitted a Purchase Agreement to the owners in the amount of $62,000. The Purchase Agreement also states that the City will assume payment for the pending $2,470 street assessment. The property owners (heirs to the estate) have executed the Purchase Agreement and the City Attorney has prepared the enclosed resolution approving the purchase of the property. No public hearing is necessary. Staff have informed the heirs that it is the City's intent to demolish the structure. This property lies within the redevelopment area as expanded by the Master Modification to the Redevelopment Plans and Tax Increment Financing Plans and the purchase will be funded with TIF funds. 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 were provided to the EDA by the Relocation Consultant and the City Attorney at the August 14th EDA meeting, at which time this matter was tabled again. If the EDA does not intend to proceed with this project, staff recommends that the EDA not approve the enclosed resolution for the purchase of this property. The EDA could consider the purchase at a later date on a scattered site basis. MOTION BY SECOND BY Revlew: 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 $62,000.00 with other terms and conditions as set forth in said Purchase Agreement, and WHEREAS, purchase of the Property is authorized by Minn. Stat. §469.101, Subd. 2, and WHEREAS, it would be in the best interest of the City and its people, and will further the City's general plan of economic development to purchase the Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the above recitals are incorporated by reference. 2. That the Minnesota Standard Residential Purchase Agreement attached hereto as Exhibit A is hereby approved. 3. That the appropriate EDA staff and officers are authorized and directed to take whatever steps necessary to complete the purchase of the Property as set forth in attached Exhibit A. Adopted by the Economic Development Authority in and for the City of New Hope this day of August, 1995. Edw. J. Erickson, President At t est: Daniel J. Donahue, Executive Director CORRICK & SONDRALL, P.A. s~v~N a.$ON{3R~LL ATTORNEYS AT LAW MICH/4EL R. 14ARTIN P. MALJ/CHA Edinburgh Executive Office Plaza W,LU*MC. sm,~r 8525 Edinbrook Crossing Suite #203 Brooklyn Park, Minnesota 55443 TELEI~HONE (S12) 42~-~71 FAX (812) 42..~5a~7 Ju~y 19, 1995 Danie3 d. Donahue Executive Director New Hope EDA 4401Xy]on 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 purchas~ 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 should be passed after the City Council has adopted the Master Modifications. Please contact me if you have any questions regarding this.  Sincerely, Inclosure cc: K~rk McDonald (w/enc~ i Valerie Leone (w/endl~l~ THIS COPY Steven A. Sondra11, Es~. 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 Suly 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 if you have any questions. Sincerely, t". ', 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 City ~"1~ For Fimily 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 Suly 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 (PID //05-118-21-33-0082). That opinion of value is $62,000. This report is thorough and complete following accepted standards and practices. The data presented is relatively accurate and relevant. The cbmparables used are appropriately similar and from a close time frame. Adjustments made in the analysis are reasonable. Property appraisal methods and techniques were used. The conclusion of this report is appropriate and reasonable. Hennepin County General Services County Assessor Division A-2103 Hennepin County Government Center Minneapolis, Minnesota 55487-0213 City of New Hope August 1, 1995 Page 2 CERTIFICATION I certify that, to the best of my knowledge and belief: · The facts and data reported by the' review appraiser and used in the review process are true and correct. · The analysis, opinions, and conclusions in this review report are limited only by the assumptions and limiting conditions stated in this review report, and are my personal, unbiased professional analyses, opinions and conclusions. - · I have no present or prospective interest in the property that is the subject, of this report and I have no personal interest or bias with respect to the parties involved. · My compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this review report. · My analyses, opinions, and conclusions were developed and this review report was prepared in conformity with the Uniform Standards of Professional Appraisal Practice. · I did not personally inspect the subject property of the report under review. · No one provided significant professional assistance to the person signin~ this review report. Yours truly, Glen F. Busitzlcy, SALVIA Principal Appraiser GFB:jb ~ ,~ ~ ,u~ r--'-~ ----. Sumter Avenue North __ Ill l _ 1 _ [ '~ _ I ~ll 1 ~il ~--x--~'~ O~ [ [ New Hope o- rys~l · .:.iL-~3-95 WED ~2:2~, MINNESOTA. STANDARD RESIDENTIAL PURCHASE AGREEMENT ,,~,~ ,3,~ ~li~r~e, Perso~l ~pras~tative of t~ ~tate of ~r~ces L,~se ~',.' e"'P~$ONAL.,, ~czlec o~PROP~R~ AND ~IXTU~ INCLUDED' IN ~. Tb~ following itam~ ' ~.e"S ~tOrm coors, s~reens, awmn~s, w~mdow s~a0es, ohnOs, curta~n-traveose-dra~e~y rOOS at~ch~ hgnttng fixtures ~ hn~ng or of future l~tlI OI~I~. : ::. CONDITI~ OF PRO~ER~ Seller warr~ ~at all aa~i~c~, fixing, neafi~ ~ air ~- ~ ~'-~.~ '~ me ~,; -~' --- '", ~ N~ le~. ¢ffy water . -'~...~ L;,0<, ..' ;~0). ~eller s~n]l mmve ~1 ~e~ a~ al ~t~nal O~y not I~ud~ In ~li = ~ ~, '~ ~ ~ ~ece~veo any ~ottce r~ ~y governmen~l ~t~ al to ~e exm~e of any Ou~n elm -'~,k~'.~ ~ e ~e 'c Seller's fadure ~0 ~r~0 i~ gO00 faRh. Buyer may ~ek, aS ~i~ ~ law. any one Or : .:'..~: r :~ .:O' :':~u; ~S prOV~Ce~ Dy St~ute a~O ~taln all pay~flts m~e ~e~naer ~ liqui~at~ ~os. The ~a~ies ac~nowl~ge ~ 6. NO~. ~II ~e~ r~ul~ h~ ~ ~ ;~ ~ ~ ~ ~ or m~a ~ ~ ~r~ ~'~w~ SEWER'S S~R~ BUYER~ ~U~R'~ INITIALS INI~A~ , INITIA~ , LNITIA~ 18, SUS~V~ON OF LAND. If ~il ~ c~t~ ~ ~ui~a a auNN~ Of la~ ~ ~ ~1~. ~ler !~11 approv~ for re~r~inq aa of the ~i~ Of ~. . ,.: ~L:~t~r:;' ~p~T 30, ~ accac~ co ~e ~:c~~~c. ~[e: a~~~ ~'.~O~NOA..xtt~Cr.e.~ are (nu~¢)~ a~a w~iCh ~e m~ e ~ of ~ Ag~m~l. r~4:~ 1~ A LCOA~LY 01NDINO OONTRA~, O~PO~' OIONINO, OO~A ~W~R. CUr nU~nv~irm N~. ~ty ADDENDUM TO PURCHASE ARREEMENT FOR 5669 SUMTER AVENUE NORTH I. Seller's Reclamation Rights. Buyer acknowledges and agrees ~eller may reclaim the following personal propertYprior to Buyer's demolition of the improvements on the property: Garage d~or, water heater, furnaco, washer and dryer. Seller's reclamation rights ~hall be subject :0 the following r-,~'ms and conditions: Seller shall not r'~m~ve the referenced personal property until Seller receive~ notice from the Buyer to do ~, Buyer agree~ it will tive Seller &t lesl~ 48 hours notice that said property m&¥ be r~moved. Verbal notice shall be sufficient for this purpose. b. In the event Seller fails to remove the property within 48 hours after receiving notice from Buyer, Buyer m&y dispose of the property as if ~ees fit. In ~aid event, Seller's reclamation rights to the property shall be deemed waived and Seller agrees it shall have no claim to the property or claim to money damages against Buyer for dilpoeal 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 1n~urles surfaCed by any individuals acting for or on behalf of Seller to reclaim the referenced property regardless of whether said claim or injury arises from the negligent ~ct or omission of Buyer or any employee, representative, agent or independent contractor of Buyer. Seller furZher agrees this reclamation right is limited to the p~rsonal property listed in paragraph 1 above. 2. Well Oi ~losure Statement. Seller hereby informs Buyer that a wet1 is located on the ~roperty legally described in paragraph 2 of tho purchase agreement. Seller further certifies the following information regarding maid well is accurate and complete to the best of his knowledge: a, Legal description of property: Tract B, RL$ B7~ S 5, T 118, R 21~ Hennepin County, Minnesota. b. Seller certifies that the following well ~s ~ocated on the above ~e$cr1Ded real property. MN Unique Well No: Well Depth: '.ear c,f Construction: 'well Type: ~n Use: Not i n U~e: c, Map 01' Well Loc~tion d. Certification by Seller~ c,r'~i~y t~t .t~nfo~m~tion provi~eQ is accurate an~com'~ete~ t~'B~stSf my knowledge. ~igned by~ ~~~ J~( A ~~0. . 3, Real. Estate A~ency Oi~olosure.~ee additional terms provision of paragraph 20 o~ ~he Purchase Agreement. 4, RiQht~ of Tenant. Seller mgreea that this sele shall not be ~ubjecL to any tenant rights In the property, Seller agrees ~h~t a~l tenant rights will be terminated and the property w~1t ~e vacated on or before the date of closing, Buyer ~cknowledges end agrees that Buyer will responsible for any ~en~t claim ~or relocation assistance oursuant to the Uniform ~elocation A~si~tance and Real Property Acquisition Policies Act end ~rees to indemnif~ snd hold hmrmless c~aims made by tenants pursuant to or under said Act. Dated: __ , 1~05. c: % w p51kcnh~sumter.add , - , CORRICK & SONDRA~,, P.A. ST£VEN ~. $ONOR,&LL ATTORNEYS AT LAW ~c~ ~. ~u~ Edinburgh Execu~ve Office Plaza MARTIN P MAL~CHA ~,~ c. s~R,~ 8525 Ed~brook Crossi~g Suite ~203 Brookl~ P~k, Minnesota 55443 July 5, 1995 Mr. Chad Henderson Attorney at Law 6200 Shingle Creek Parkway, Suite 385 Brooklyn Center, MN 55430 RE: Estate of Frances Louise Laliberte Our File No: 99.29431 Dear Mr. Henderson: [ am forwarding to you the enclosed Purchase Agreement and Addendum at the request of Jules Laliberte, the Personal Representative for the Estate of Frances Louise La]iberte. The Economfc Development Authority in and for the City of New Hope is interested in acquiring the property at 5559 Sumter Avenue North in the City of New Hope. [t is our understanding that the decedent, Frances Louise Laliberte, was the fee owner of said property. In compliance with the Federal Uniform Relocation Assistance and Rea] Property Acquisition Policies Act, p~ease consider this letter our summary statement of the basis for our offer required by Section 24.102 of the Ru~es 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, th~s offer for the purchase of 5559 Sumter Avenue North is for a fee simple interest in the property subject to no tenant interest or otherwise. This offer includes acquisition of all buildings and improvements to the property 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 $62,000. The siding issue (steel v. aluminum) does not affect the appraised value a~cording to our building official and the appraiser. Also, the EPA will assume payment for the pending $2,470 street assessment. We will also be incurring an expense to cap and seal the well on the property. As a result, we believe the $62,000 offer represents fair compensation for the property. The EDA will also pay for al1 incidental expenses to transfer title to the property as required by Section 24.106 of the Rules' and Regulations including recording fees, abstract extension costs and the 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 resulting from their di.splacement from the property by the EDA's acquisition of the property. The EPA would like to consider this Purchase Agreement at its July 24, 1995 meeting. Therefore, a response to this Purchase Agreement by your client by July 19, 1995 would be much appreciated. Please contact me if you have any questions. Very' truly yours, ORIGINAL SIGNED Steven A. Sondrall New Hope City Attorney and EDA Attorney slt2 Enclosures cc: Daniel d. Donahue, City Manager. C0P¥~,,~--~~~ Kirk McDonald, Management As,~a~THtS Jules Laliber'te Mike Meyer 4,~01 Xy!onAvenue Nortl~ C/tyHalt, 51£-531-5150 C, ty-~,'/:ax.£':-:~2'.J'~¥ New Hope, Minnesota 55428.4898 Police: 612-531-5170 Poflce Fax: ~2-£.7'-i' ~z Public Works: 612-533-4823 Pubiic Works Fax: 612-533.'5E~ TDD: 612-531-5109 F/re Oep't. Fax: 612.53;-5~ 75 August 17, 1995 Mr. Jules LaLibert~ 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 New Hope City Council meeting, the Council tabled a resolution authorizing the purchase of 5559 Sumter Avenue North, per the executed Purchase Agreement. The resolution was tabled because the Council wanted to know what financial obligations the City is under in order to comply with the Uniform Relocation .. Act. This information was presented to the Council at the August 14th meeting. During the August 14th meeting, the Council tabled any action on your property for an additional two weeks. Therefore, the resolution to acquire 5559 Sumter Avenue will be brought before the Council at their August 28th meeting. Kirk McDonald or I 'will keep you notified of any action that is taken. Please contact me at 531-5 137 if you have any questions. Sincerely, Sarah Bellefuil Administrative Analyst cc: Dan Donahue, City Manager Kirk McDonald, Management Assistant/Community Development Coordinator Steve Sondrall, City Attorney Doug Sandstad, Building Official Jean Coone, General Inspector Valerie Leone, City Clerk (Improvement Project #541) Chad Henderson,.Attomey at Law Family Styled City ~ For I~amily Living EDA ~~~~Oq~ REQUEST FOR ACTION originating Department Approved for Agenda Agenda Section City Manager EDA 8-28-95 Kirk McDonald ~ Item No. By: Management Assistant By:~/ 7 MOTION ACCEPTING APPRAISALS /(aND AUTHORIZING STAFF TO PROCEED TO NEGOTIATE WITH PROPERTY OWNERS TO PURCHASE PROPERTIES AT 7609 BASS LAKE ROAD AND 5520 SUMTER AVENUE FOR BASS LAKE ROAD EXTENSION HOUSING REDEVELOPMENT PROJECT (IMPROVEMENT PROJECT NO. 541) At the May 8th Council meeting the City Council and staff discussed potential housing redevelopment options in the Bass Lake Road Extension area. Staff indicated that properties would be acquired on a voluntary, willing-seller basis. The Council authorized staff to obtain appraisals on two properties (7621 Bass Lake Road and 5559 Sumter Avenue), as these property owners had previously contacted the City and indicated an interest in selling their properties to the City At the June 12th EDA meeting the EDA accepted the appraisals on the first two properties, authorized staff to negotiate with the owners and negotiations are currently underway. Also, at the June 12th EDA meeting the EDA authorized staff to obtain appraisals on two additional properties, as two additional owners had contacted the City. One property (7609 Bass Lake Road) is located within the project area and one property is located directly adjacent to the project area (5520 Sumter Avenue) and could easily be incorporated into the redevelopment plan. BCL Appraisals has completed the appraisals on the two additional properties and the "Fair Market Value" estimates and compared to the January, 1995, assessed values below: Property_ Owner Address Fair Market Value 1995 Assessed Value Ronald/Sharie Huebner 7609 Bass Lake Road $65,000 (Land) $22,500 (Bldg) $47,500 $70,000 Patrick Olek 5520 Sumter Ave. No. $85,000 (Land) $20,500 (Bldg) $51,600 $72,100 MOTION BY SECOND BY Review: Administration: Finance: RFA-O01 ~ Request for Action Page 2 August 28, 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 properties. Cost estimates and an explanation of the costs involved with the Uniform Relocation Act were provided to the EDA by the Relocation Consultant and the City Attorney at the August 14th Council meeting, at which time this matter was tabled again. If the EDA does not intend to proceed with this project, staff recommends that the EDA not approve a motion accepting the appraisals for these two properties and direct staff not to proceed to negotiate for the purchase of the properties. BASS LAKE ROA. D HOUSENG DEVELOPMENT \ -  ADDRESS.~'P!D OWNER/TAXPAYER ,ASSESSED VALL'IE, 05-118-21-33-0028 NH Alano Group, Inc. Land: -0- 7615 Bass Lake Road Bldg: -0- 1. 05-118-21-33-0088 M. Hilgers Land: 19,500 7605 Bass Lake Road Bldg: 33,000 -'f2. 05-118-21-33-0089 Bank of Am. Trustee Land: 22,60o"-~"  7609 Bass Lake Road Taxp: Ronald/Sharie I-Iuebner 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 Kun~ Land: 21,000 7603 Bass Lake Road Bidg: 33,000 6. 05-118-21-3341027 Jm'om~Karla McBrady Land: 21,500 7621 Bass Lake Road Bldg: 56,000 05-118,21-33-0094 Roy Edison '. Land: 21,500 7608 55th Ave. N. Bldg: 78,000 05-118-21-33-0095 M. & B. Drenth Land: 21,500 7616 55th Ave. N. Bldg: 80,000 05-118-21-33-0096 Lowell l~s Land: 21,500 7624 55th Ave. N. Bldg: 76,000 05-118-21-33-0097 Arle~ Pet~mon Land: 21,500 7700 55th Ave. lq. Bldg: 70,000 05-118-21-33-0098 Dana l~mpsey Land: 21,500 7708 55th Ave. N. Bldg: 60,000 05-118-21-33-0082 $. LaLib~ne Land: 21,500 5559 Sumtcr Ave. N. Bldg: 42,000 05-118-21-33-0022 B~tty Dejno Land: 21,500 5537 Sumtcr Ave. N. ' Bldg: 47,000 Exhibit E BASS LAKE ROAD HOUSLNG DEVELOP.~fENT ,~ ADDRESS/PID OWNEI~T,kXPAYER ,ASSESSED 05-118-21-33-0026 Geralci/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 Latid: 21,500 5501 Surnter Ave. N. Bldg: 4zg,000 05-118-21-33-0099 lames/Pamela Schilling Land: 21,500 5510 Surnter Ave. N. 15195 Edgewater Circle Bldg: 33,000 Prior Lake 55372 5 055~i 8-21-33-0085 Patrick Olek Land: 20,5~'~. Sumter Ave. N. Bldg: 45,000 7. 05-118-21-33-0029 Douglas Hodgeman Land: 22,500 5530 Sumter Ave. N. Bidg: 39,'000 : 8. 05-118-21-33-0024 John Dore Land: 21,500 5538 Sumter Ave. N. Bidg: 47,000 9. 05-118-21-33-0025 Luverne Peterson Land: 19,500 5546 Sumter Ave. N. Bldg: 52,000 Total all properties assessed value $1,612,600 Total 9 properties in minimum project $ 60~,100 Exhibit E BCL Appraisals, Inc. Bjorklund, Carufel, Lachenmayer. [ncorporatecl July' 6, 1995 City of New Hope 441J1 Xylon Avenue North New Hope. lVln 55428 Attention: Kirk McDonald Attached is the appraisal completed on July 6, 1995 for the property at: 7609 Ba~ Lake Road New Hope, Ma $5428-3828 Sherri Huebner The estimate "~T_a~rd~ll:i~l~' as of July 6, 1995 is: Sixty-Five Thousand Dollars $6~,000 No tespomibility has been assumed for matters which ate legal in nature, nor has any opimon on them been rendered other than assuming marketable title. Liens and. eucu. m.brauc~.., i.f any, hav~ been disregarded and the property was appra~ed as mougn tree ot umeote~. · In ~ q~prmal ~ ~ exi~euce of potenti~ly hazardou~ material used m co .n?u~..o~. o~ mamteaame of the buildiag, such u the pra~euce of urea-t, om~ldehyde foam imulat/on, asbestos, and/or the e~e of substance~ such .~_tom¢ ~ ot ~ ~, aad~ot the existence of any other environmental mn? trot m~y ,mmt~ely affect the value of the property, w~ not observed by me: nor eq. l ~ve any lmo~e~e of .~e ex~tence of.such maten~Le~substance~infiuences on or ~ me property.. The ,pprmet, however, ~ not qualified to detect such trmteria~ ~blt, luce~i~lue~e~. The exir~ce of utes- formaldehyde foam insulation, or other potentially hazattlou~ nu~tetial, or toxic wa~e or radon gas, may have effect mi the value of the property. I ut~e the client to retain aa expert in ~ field if dealted. Pleaae feel free to ~ if you have any que~tiota. We appreciate your bminea.. Sincerely, BCL Appraisals, Inc. R0n I~che~rnayeL SRA RLt~w 7,U2 Aaaae/ia~aa. ~ ~.~lll (612} 711-0~01 Fu: 711-7126 .roe.r~y o..c.~tto~ UNIFORM RESIDENTIAL APPRAISAL REPORT &s~eascr ~ ~tr:m~ 0~-118-21-~-00~ '~ 'ear 1~ ~E 'axesS1 ~ i~.0~ Le~er/ChemCi:y Of New Hope ~ar.~0~ Kylon AveRue Nor:h, ~ Hope, ~ ~2~ A~ra,ser RO~ Lachen~yer, $RA A~re. 2852 ~:hony Lane South, Mmneapol:s, Bu, lt ua ,~ ~er rS~ ~ 2S-rS~ ~ UnMr 2S~ occupy PnICE AGE Grow~ ~ ~ Increasing ~ 5~ ~ ' Note: R~e ~d the ricta c~oa~ of the net~od ~l not ~al~ foetal. ~,~bo~;~Mni~ln;cnarlctertst;c~: Ne~Rh~rhood ~un~r~es consist o~ 6;nd Ave to the north, ~oone Ave to the west, a~th Ave :o the south and Cry Rd 81 :o the east. See At.abed Addend. the IoMlCt ~gNIolIImxl (illCtallaJ laipOll Mt ~ ~ ~uwl alltl{ ti t~ trlflt II lrl~l~ vlluea. ~lmin~/suB~ly an~ marxetmg t~me ~nd c~rlcter~st~c~ Io~r tO ~ ~n ~nce. T~t~l ~rket~n~ :me for hoses neieh~rh~d ~ ~r thr~ months. ~rketine time aoo~ to ~ ~cr~nR ~e to the ~nteresC rates. ~ces ere currently et T.Z~% to T ~/8% wLth zero to t~ point~ ~f~ma~ f~ ~ (If Ippliu~l) - - II ~ ~e~r/b~lMr tn cont~ of ~ ~ ~rl As~cm~on (~A)~ ~ (ES ~ ~ To~gm~ Elev 5' abv sir ~ ~ ~ AveraRe ~ R~neu~r om~ AveraRe vi~ Res ident ~a 1/Arts ~ ~, ~a ~ c~/~ c~ere~e ~ ~ . A~mme,~m Hone ap~en: ~ ~ N~I ~ ~ ~o~. 270177-00018 (~ m ~ ~ ~ W. IliM leal. ilM~ or le~ ~nlo~ng zomng, u.. etc.): MI At.chid 1 ~ ~ ~Yes x~a~ N0 Ceiling CnC~. 30 ~--~--NO ~:~ None hotel ~;;:~I ' '- ~ ~--- ~ ~20} M~s~ 1,0~6S~mFNt ofGm~s UVlnq Area ~~ WA I~ ~1~ ~"~')' ~ ~ ., ~r --- I~-~n~ [~;~=~-' t I ; ~ 9~ .. ~ad~Uoal, ~afl~ ~flJflOnl (l~h Il. but NI limited to. ~r~el Wllbl. ~c idl~gll, etc.) present m tM i~O~Vl~fltl. Off the s,te. or valuateD, soct,o. UNIFORM RESIDENTIAL APPRAISAL REPORT ~o ~o Less Physmcai. ;unct~onaiExternal locatzon on ~ss Lake R~. Th:s resul:s . ~cm~n ~1%. 0%' 7% 'S 2a,~O0 an est~ted $~,500 loss :n value. ~omc)mte~ Vii~ of Imamve~ms · S ~0,9t 2 .... . ,See attached sketc~, for d 'AI-~s' ViI~ of Sate Imamve~m~ · $ I i 000 ~ i~ATE~VAL~BYCOSTA~ROA~N , -~ 66.900~ , ~t~ted re~inLnR L~fe ~0 years.' ~TEM SU~ECT COMPA~BLE~ I ~OMPA~LE~ 2 CC~P~BLE NC 7609 ~ss ~ke R~d ~809 Dudley Avenue 59A2 Jersey Avenue 5937 ~pshLre Ave · aaress New Hope Crys~l mm : Crystal .... Crystal ~x~,~msumec~ ~8 ~locks Northeast 8 Blocks Northeast B Bloc~s Northeast Sile~ Pace S N/a S 65,950 ) S 68,000 ' s Y2, Pn~/Gmss ~ ~mmlS 0.00~ 60.3)~ ~S 63.~9~ .S 7~ ~mnn~ar ~ ~ 38 ~ys-Cty CISi ~ 19 ~ys-Cty Clst ~S 20 ~ays-Cty VenficmtJon Sources~ lnsoect ion ~R~/Clsd 5-31-95 Ret/Clad 3-31-95 . Rec/Cls~ 11-3o-9a ,, Concmssions ~ ' : .0 Points ;0 Points s~ T~x20~ ~8z138 : +2,000 60x135 . +2,,.000 j 6Oil 33 ~ Aots/Resid. ~Resl~tial : ~2,000 Resi~ntiai -2,000~Re~ldentlaL -2,00 ~a~ Av;/~sonice ~ve/~son/te : [Ave/~sontte ' Av~/~son Can~an AveraRe ~ve~aRe '~od -1,, 0 o o ,~od - ~, 00: ~w~Crivl ~ee ~wl ~ee ~ Crawl ~ee } :15x12 8~C -1.00~ F~ ~ Ave~ee A~rae~ Aver~ie , : ~ AveraRe M~ None N~o : None : None mg~tur~ N~e ~e : ]~Ar~l ~b: -1,DO0 None m ~&r& Is flo ;~ord ~ the ~bi~t or e~rm~!~ ~inf sold ~er the ~sc 12 m~thS other t~q,., the ~__ ~t ~ -==-~-.-- ~~~ost ~F=~h I~.~0 ~!e~ ~eis~ ~l~is 16S.000. In~ ~r~ch ~s floc ~ellable ~e of llmtt~ ~ r~l ~ of sinmle f~tLv h~. The ~les C~r~son ~lvsls ~ a~e~ to N the ~9~1 rel~l~ indictor o~ ~lue. i(KES~~V~ASSM~GK~TB~W~WK. AS~ JUIV 6. 1995 9JO~, CMUFEL , ~YER , INC · =~..~.~.* v.~..~o, s.c~o. UNIFORM RESIDENTIAL APPRAISAL REPORT 7609 ~sS ~ke R~d 5361 Pennsylvania ~ New Hc~e New ~.mSourc. ~ 61 Days-Cry venticmtlon source Inspection Ret/Clad 2-1 Locmtio. BUSy Street ~up N~hbrhd ~~, Fee Fee s,~* 75 x202 88~ 1Zq Park -3,000~ , Rambler ~mbler ~a Yrs. +/- ,43 : Conmt,o, Average ~Fa ir INone '~one Car Detach il Car Detacl~ ,.1 ,~00 Deck-12zl5 ~ione +500 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 July 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 yom; 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, .. '~' .5:-,.,'' 'X. 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) Family Styled City ,~.,,:i% l.,,.ll~'C.,, For Family Living 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 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 l.ake 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 '&?/x"~'~'~'. [ , k.t,¥' For Family Livinll 4401 Xyion Avenue ,,',/orth C/ty/~'a~/.' Y2-$$1-5100 C, ty ~'a,,,' .:Jx.5'.:.!i' ~ '.~ New Hope, Minnesota 55426-4898 Pot~ce: 612-531-5170 Police Fax: 612-f2:-!'5: Public Works: 612-533-4823 Public Works Fax: ~'~ -~ .... TOD: 612-531-5109 Fire Oep't. Fax: ~12-55!-5;5 August 17, 1995 Mr. & Mrs. Ronald Huebner 7609 Bass Lake Road New Hope, MN 55428 Subject: Possible Acquisition of 7609 Bass Lake Road for Bass Lake Road Housing Redevelopment Project Dear Mr. & Mrs. Huebner: At the July 24th New Hope City Council meeting, the Council tabled a resolution to accept the appraisal and authorize staff to proceed to negotiate with you on the purchase of your property. The resolution was tabled because the Council Wanted to know what financial obligations the City is under in order to comply with the Uniform Relocation Act. This information was presented to the Council at the August Nth meeting. During the August 14th meeting, the Council tabled any action on your property for an additional two weeks. Therefore, the resolution to accept the appraisal and authorize staff to proceed to negotiate with you on the purchase of 7609 Bass Lake Road will be brought before the Council at their August 28th meeting. Kirk McDonald or I will keep you notified of any action that is taken. Please contact me at 531-5137 if you have any questions. S!ncerely, [ , Sarah Bellefuil Administrative Analyst cc: Dan Donahue, City Manager Kirk McDonald, Management Assistant/Community Development Coordinator Steve Sondrall, City Attorney Doug Sandstacl, Building Official Jean Coone, General Inspector Valerie Leone, City Clerk (Improvement Project #541) Family Styled City ~ For Family Living 440t Xylon Avenue North C, ty ,Wall: 6175314!50 C,t?' ,"z; New Hope, Minnesota 55428-4898 Po/ice: 612-531-5170 Po//ce ?ax: Public Works: 612-533-4822 Public Works TDD: 612-531-5109 Rte Oep't. Fax: August 17, 1995 Mr. Patrick Olek 5520 sumter Avenue North New Hope, MN 55428 Subject: Possible Acquisition of 5520 Sumter Avenue North for Bass Lake Road Housing Redevelopment Project Dear Mr. Olek: At the July 24th New Hope City Council meeting, the Council tabled a resolution to accept the appraisal and authorize staff to proceed to negotiate with you on the purchase of your property. The resolution was tabled because the Council wanted to know what financial obligations the City is under in order to comply with the Uniform Relocation Act. This information was presented to the Council at the August 14th meeting. During the August 14th meeting, the Council tabled any action on your property f0~ an additional two weeks. Therefore, the resolution to accept the appraisal and authorize staff to proceed to negotiate with you on the purchase of 5520 Sumter Avenue North will be brought before the Council at their August 28th meeting. Kirk McDonald or I will keep you notified of any action that is taken. Please contact me at 531-5137 if you have any questions. Sincerely, Sarah Bellefuil Administrative Analyst cc: Dan Donahue, City Manager Kirk McDonald, Management Assistant/Community Development Coordinator Steve Sondrall, City Attorney Doug Sandstad, Building Official Jean Coone, General Ingpector Valerie Leone, City Clerk (Improvement Project #541) Family Styled City ~ For Family Living