091195 EDA .... Official File Copy
CITY OF NEW HOPE I EDA AGENDA
EDA Regular Meeting//14 September 11, 1998
Agenda #15
President Edward J. Erickson
Commissioner W. Peter Enck
Commissioner Pat La Vine Norby
Commissioner Gerald Otten
Commissioner Terri Wehling
1. Call to Order
2. Roll Call
3. Approval of Minutes of August 28, 1995
4. Resolution Authorizing Letter of Agreement for Design Services for 6073
Louisiana (Improvement Project No. 519)
5. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
Approved EDA Minutes August 28, 1995
Meeting #13
CALL TO ORDER President Erickson called the meeting of the Economic Development Authority to
order at 7:32 p.m.
ROLL CALL Present: Erickson, Enck, Otten, Norby, Wehling
Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil
APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner Enck, to
approve the EDA minutes of August 14, 1995. Voting in favor: Erickson, Enck,
Otten, Norby; Absent: None; Abstained: Wehling. Motion carried.
IMP. PROJECT 523 President Erickson introduced for discussion Item 4, Discussion Regarding Financial
Item 4 Assistance Request by Gill Brothers Funeral Chapels, Inc. (Improvement Project
No. 523).
MOTION Motion was made by Commissioner Enck, seconded by Commissioner Otten, to
Item 4 table discussion regarding financial assistance to Gill Brothers until later in
meeting when a representative of Gill Brothers may be present. All present
voted in favor. Motion carried.
IMP. PROJECT 541 President Erickson introduced for discussion Item 5, Resolution Repealing the Bass
Item 5 Lake Road Housing Redevelopment Project No. 541.
Councilmember Enck remarked that he does not feel the EDA can justify spending
$350,000 in relocation costs. He asked staff to convey his concerns of the hardship
placed on cities which are required to comply with the federal Uniform Relocation
Assistance Act for voluntary property acquisitions.
Mr. Dan Donahue, City Manager, indicated the resolution repealing the project
states that excessive development costs and the requirement to pay relocation
expenses on voluntary property acquisition is the basis for the project cancellation.
Further, he stated action for EDA Items 6 and 7 are incorporated in the 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, adoption of the resolution will eliminate any need for further action on
these two agenda items which were tabled at the last meeting.
The resolution clarifies that cancellation of the project 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 project area despite its cancellation.
EDA RESOLUTION Commissioner Enck introduced the following resolution and moved its adoption:
95-17 "RESOLU'rION REPEALING THE BASS LAKE ROAD HOUSING
Item 5 REDEVELOPMENT PROJECT NO. 541". The motion for the adoption of the
foregoing resolution was seconded by Commissioner Wehling and upon vote taken
thereon the following voted in favor: Erickson, Enck, Otten, Norby, Wehling; and
the following voted against the same: None; Absent: None; whereupon the
New Hope EDA August 28, 1995
Page 1
resolution was declared duly passed and adopted, signed by the President which was
attested to by the Executive Director.
IMP. PROJECT 541 Due to action taken in Item 5, no action was necessary on the following two items:
Items 6 & 7 Item 6: Resolution Authorizing the Purchase of 5559 Sumter
Avenue North (Improvement Project No. 541); and
Item 7: Motion Accepting Appraisals and Authorizing Staff 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).
IMP. PROJECT 523 President Erickson brought off the table Item 4, Discussion Regarding Financial
Item 4 Assistance Request by Gill Brothers Funeral Chapels, Inc. (Improvement Project
No. 523).
Mr. Donahue reported that the proposal has not been discussed with staff yet. lie
recommended against the EDA approving a loan request until the private sector is
tested.
Mr. Dan McGraw, President of Gill Brothers Funeral Chapels, Inc., was recognized
and responded that they have tested the private market for financing and a financing
package was prepared by Miller Funeral Home Design and Construction. He stated
they are in the process of securing financing in the commercial market and have
found that a 15-year loan at 9% interest is typical. He stated one option for City
assistance would be for the City to buy down that rate.
President Erickson informed Mr. McGraw that more definitive figures are
necessary. He instructed Mr. McGraw to meet with city staff to develop a proposal
to be presented to the EDA at a later meeting.
Commissioner Norby called attention to the fact that the property was appraised at
$250,000 which Gill Brothers would like to purchase for $200,000. She also
pointed out that the City is being asked to relocate the storm sewer at a cost of
$30,000. Commissioner Norby acknowledged the business will be a desirable
addition to the community, but she expressed concem regarding the City financing
the project.
Mr. McGraw remarked that he is hopeful that an agreement can be achieved as he
believes New Hope is an impressive community.
MOTION Motion was made by Commissioner Enck, seconded by Commissioner Norby, to
Item 4 table discussion regarding f'mancial assistance to Gill Brothers until the
September llth EDA Meeting. All present voted in favor. Motion carried.
ADJOURNMENT Motion was made by Commissioner Wehling, seconded by Commissioner Otten, to
adjourn the meeting. Ail present voted in favor. The New Hope EDA adjourned
at 7:45 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA August 28, 1995
Page 2
~ EDA
REQUEST FOR ACTION
originating Department Approved for Agenda Agenda Section
City Manager EDA
9-11-95
Sarah Bellefuil !/'~ Item No.
By: Administrative Analyst By:
/
RESOLUTION AUTHORIZING LETTER 'OF AGREEMENT FOR DESIGN SERVICES FOR 6073
LOUISIANA (IMPROVEMENT PROJECT #519)
At the August 28, 1995 City Council meeting, the City Council discussed the construction of a handicap
accessible twin home at 6073 Louisiana Avenue North. The City Council indicated their support and
staff is proceeding with project at this point.
Staff desires to construct the same type of structure at the 6073 Louisiana site as was constructed at the
51st and Winnetka property. Therefore, staff is requesting approval of a Letter of Agreement with
Equal Access Homes to prepare plans and specifications and related design work for the twin home.
The plans and specs will be a modification of those completed by Equal Access Homes for the 51st and
Winnetka property.
The services that will be required of Equal Access Homes have been determined to be professional
consulting services, therefore no bids were received for this project. The attached Letter of Agreement
was prepared by the City Attorney and the total maximum estimated cost for the design services is
$1,590 and will be funded out of EDA or CDBG scattered site housing funds.
Staff requests authorization for the Executive Director to enter into and execute a Letter of Agreement
with Equal Access Homes, to provide design services for this project. Staff will bring the twin home
design back to the EDA for approval prior to the construction bidding process.
Staff recommends approval of the resolution.
1
Renew: Admir~aflon: Finance:
RFA-O01
%?-07-95 THU I3:55 P, 02/07
~el~tember 7, lgg6
Daniel d. Oonahue
City Manager
City of New Hope
4401Xylon Avenue North
New Hope, MN 55428
RE: 6073 Louisiana Avenue North
Oear Dan:
In connection with the proposed twinhome project'at 8073 Louisiana
Avenue North, enclosed you will find & Letter of Agreement between
the EDA and Equal Access Homes, Inc. for design and related
~ervices. This Agreement contains the same terms as the prior
Agreement with Equal Access Homes for the twinhome at 7501-7909
51st Avenue, except for additional language in the lirst part of
Paragraph 2 clarifying tha~ Equal Access Homes will not be paid for
supervising and tnsDecttng the construction if Equal Access Homes
is awarded the bid to construct the e073 twinhome, This change
reduces to writing the understanding the EDA had with Equal Access
Homes for the.7901-?g09 Droiect. The dollar amounts for the design
and related services are slightly lower than the previous project
due to the deletion of the separate charge /or a marketing Dlan.
If the Agreement meets with your approval, you will also find
enclosed a Resolution Authorizing Letter' of Agreement for Design
Services for 6013 Proiect. This resolution can be considered by
t~e EDA at its next meeting.
Be sure to ~all if you have any questions.
Sincerely,
Mart i n P. Mal echa
s3t
Enclosure
cc: Kirk McDonald~ Management Asst.
Sarah 8ellefuil, ^dministrative lest.
s~even A. Sondrall, City Attorney
~ SEP-07-95 THU ~3:55 P, 03/07 __
EDA RESOLUTION NO. 95-
RFSOLUTION AUTHORIZING
LETTER OF AGREEMENT FOR DESIGN
SERVICES FOR 6073 PROJECT
WHEREAS, the Economic Development Authority ~n and for the
City of New Hope (EDA) owns certain rea] estate known as ~O73
Louisiana Avenue North, and
WHEREAS, the EDA is cons~derln~ constructing a handicap
accessible twinhome on said re~l estate, and
WHEREAS, ~be preparation of plans and specifications and
related design work for the twlnhome ~s a necessary preliminary
step in such a project, and
WHEREAS, the services involved a~e professional ~onsulting in
nat~e, and
WHEREAS, the EDA has received quality ser¥ioes of th~s type ~n
the past f~om Equal Access Homes~ &nd
WHEREAS, the Lette~ of Agreement between the EDA and Equal
Access Homes, [nc., attached hereto as Exhibit A, sets forth the
detai] s of an appropri ate cont tact between part ies for t he
prepar'at~on Of plans and sDec~ficetiona and retated services.
NOW, THEREFORE, SE [T RESOLVED:
1. That the Letter of Agreement attacfle~ ~e~eto as Exhibit
A between t~e EDA and Equa~ Access Homes, [nc. fo~ sa~d
~es~g~ and re~ated work ~s approved, and the President
and Executive D~recto~ are authorized &n~ d~rected to
sign said Letter' o~ Agreement.
Adopted by the Econom~G Development AUthOrity ~n and for the
City of New Hope t~iS ~ . day of .... 199B.
Edw. J. E~kaon, President
ATTEST;
Daniel J- Donahue, ExecutiYe Director
SEP-07-95 ?HU 13:55 P, 04/07
LETTER OF AGREEMENT
Date: Seotembsr .., , 1995
Designer: Equal ACCESS Homes, Inc.
2367 78th Street East
Inver Grov~ Heights, MN 55076
Owner: New Hope Economic Development Authority
4401XylOn Avenue North
New Hope, MN 55428
Project: Handicap Accessible Twinhome
6073 L. oui~iana Avenue North
New Hope, HN 55428
THIS AGREEMENT $~all set forth the terms under which Designer
shall provide services to Owner regarding design, consultation,
~roject management and marketing plans for the cons~ff~ction of &
hendicappeU aucessible =winhome a~ 6073 Louisiana Avenue North in
~he City of New Hope.
1. Project .P~r"ameter.s. The project involves the
construction of a handicap accessible twinhome on real estate owned
by Owner at 6073 Louisiana Avenue North. Floor area of each of t~e
~wo units comprising the bwinhome s~all be 1,400 to 1,600 square
feet. Each unit shall include a living r~om, kitchen, dining area,
two bathrooms, a utility room/corridor, and three bedrooms. The
Owner intends to constr'uc~ the ~wlnhome for a maximum expenditure
of $210,000.00, including architectural ~rvices, materials and
construction costs, including the cOe~ o~ sewer and wa~er ~Kom the
stree~ ~o the ~winhome. L~ndscaping will be designed and completed
es ~ separate item by ~he City Forester after oo~struction of the
~winhome has been ~om~leted and ~ not ~nclud®d in the above
maximum expenditure. Both units o~ ~he ~winhome mus~ have access
~o Louisiana Avenue North. The entire twinhome must be no gPeater
~han 58 feet ~ide,
~. Designer Work. Oesigner will supply the services listed
below in a prompt manner, and such services shall be o~ a quality
reasonably acceptable in the indus%ry. Where an estimate is
provided, ~dUi~ional meetings or additional time soen~ ~bove the
estimate ~hall be billed by O~igner and paid by C([y at the
' SEP-07-~ ?HU 13:56 P.O~/07
applicable hourly rate. Services which do mot include an estimate
shall be performed for %he dollar amount specified. NO DJ'liable
travel time for any single meeting shall exceed one hour. I~
Demign~r i~ the succe~G{ul bidder for ~he cons%ruction of the
twinhome, Demi~ner shall not receive mny paymer~b from Owner for any
services provlOeQ to Owner unOer Paragraph 2 C, of this Agreement.
A, Meet with EDA/City ~taff to discus= the accessible
twinhome design. Three A-hour periodm ¢onsistin9 of 1
hour'/15 min. each o~ actual meeting ~ime and ~5 min. per
meeting of drive time, all a% $3~.00 oar hour_ Total
estimate - $210.00.
B. Develop construction drawings, which include showing
electric switch and outlet ~oca:~one on ~he floor plan,
and also HVA¢ warm air supply and cold air re:urn
locations. Construction drawings sh&ll include one set
of drawings reduced ~o 8 1/2 by 11 size, Also provide a
materials list sufficient for bidding purposes.
($~80.00),
C. Visit the job site at least every two week~ to review or
verify bhe construction procedures. Repor~ any necessary
information to the proSect manager for Owner. Six ~-hour
periods consistin~ of 1-hour/15 min. each of
meetin~ t~me and 45 min. per meeting o~ drive ~ime, all
a~ $35.00 per hour, Total es[image: $420.00.
O. Meet with Buyers selected by Owner to debermine any
special needs. Two 4-hour meetings (One 4-hour mee[ing
wi[h each homeowner) consisting of 3 hour meeting time
an~ 1 hour drivin~ ~ime, all at $3S.00 per hour. This
meeting will be for ~he purpose of evaluating the special
needs of ~he buyers and answering questions abou~ the
variables involved wi~h all aspects of each particular
Stage of the building process. Typical subje~bs to be
covered include gas rs. electric s~ove, wall swi[ch
heights, right hand/left hand preferences, counter
heigh%e, grab bar locations, o~her options, otc, A~ the
meeting Designer will also educate the buyer on various
flooring products to consider, including abrasive tiles,
special carpet pads, special carpets, e~c., To,al
estimate: $~80.00.
3. Pavme. o~. Pa~men~ for services shall be made within 30
days of invoice to Owner by Designer. Invoices shall include a
de=ailed itemization of ~e service provided and time involved.
Invoices shall be submitted to Owner month~y.
2
SEP-07-95 THU 13:56 P, 06/07
4. Ownership of Product. All construction drawings and
materials li~ts shall be the property of Owner after the invoice
for those items has been paid by Owner.
5. ~. Designer shall not assign or transfer,
whether by an assignment or novation or otherwise, any of its
rights, du'bies, benefits, obligations, liabilities or
resDonsibilities without the prior written consent of the City.
6. Zndemnif'icabion. To the fullest extent permitted by law,
Designer shall indemnify and hold harmless Owner, it agents and
employees from and against all claims, damages, losses and
expenses, including bu~ not limited Lo reasonable a~orney's fees,
arising ou= of or resulting from the performance or nonperformance
of Designer's obligations under this Agreement, provided ~ha~ anx
such claim, d:ma~e, lose or expenses (1) ie s[tributable to bodily
injury, sickness, disease or death, or to injury or to destruction
of [angible proDerty including the loss o¢ use resulting therefrom,
and (2) i~ caused in whole or in part by mny negligent ac~ or
omission of Designer, anyone dir'ec~ly or indirectly employed by
Designer, or anyone for whose acts Designer may be l~able~
regardless of whether or not ~t is caused in par% by a par~¥
indemnified hereunder. "
7. Termination- This Agreement may be terminated by either
party in the ease of breach by the other, upon ? days wrib~en
no~ice. The address ~nd telephone number of Designer for the
purposes of giving no%ice and any oth~r purpose under th~s
aDresmen~ shall be:
At:n' Oharles Braun
Equal Access Homes
2387 78th 8~reet Eamb
Znver Grove Heights, NN 55076
The address of the Owner for purposes of ~ivin9 no%ice and any
o~her purpose under ~his agreemen[ shall be:
At~n: Daniel J. Donahue, Executive Director
New Mope EDA
4401Xy~on Avenue North
New Nope, NN 55428
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SEP-07-95 THU 1~:57 P, 07/07
Dal;ed: EQUAL ACCESS HOMES~ INC.
T~bs
Dated: ECONOMIC DFV~I..OPMENT AUTHORITY IN
AND FOR THE CITY OF NEW HOPE
!bs Execut;ive Direcl:or