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
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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