100995 EDA Official File Copy
CITY OF NEW HOPE
EDA AGENDA
EDA Regular Meeting #16 October 9, 1995
Agenda #17
President Edward J. Erickson
Commissioner IV. 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 September 25, 1995
4. Resolution Approving 1995 Amendment to Master Modification to Redevelopment
Plans and Tax Increment Financing Plans and Requesting the Approval of the City
Council
5. Resolution Relating to Redevelopment Plan 85-2: Approving Redevelopment
Contract with Gill Brothers Funeral Chapels, Inc. (Improvement Project No. 523)
6. Resolution Approving Plans and Specifications and Ordering Advertisement for
Bids for Construction of Handicap Accessible Twin Home at 6073-6081 Louisiana
Avenue North (Improvement Project No. 519)
7. Discussion Regarding Acquisition of McBrady Property at 7621 Bass Lake Road
8. Discussion Regarding Request for Tax Increment Financing Assistance for
Car-X/PUD Development at 7180 42nd Avenue North
9. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
Approved EDA Minutes September 25, 1995
Meeting//15
CALL TO ORDER President Erickson called the meeting of the Economic Development Authority to
order at 8:16 p.m.
ROLL CALL Present: Erickson, Enck, Otten, LaVine Norby, Welding
Staff Present: Sondmll, Hanson, Donahue, Leone, McDonald, Bellefuil
APPROVE MINUTES Motion was made by Commissioner Enck, seconded by Commissioner Welding, to
approve the EDA minutes of September 11, 1995. All present voted in favor.
Motion carried.
7609 BASS LAKE President Erickson introduced for discussion Item 4, Consideration of Huebner
ROAD PROPERTY Purchase Agreement Offering to Sell Property at 7609 Bass Lake Road for $78,500.
Item 4
The EDA considered the fact that the recent appraisal valued the property at
$65,000. Since the proposed housing project for this area has been cancelled by the
EDA, acquisition of the property by the City is no longer vital to the promotion of
a public purpose, president Erickson questioned whether a lower price could tn}'
negotiated.
Mr. Steve Sondrall, City Attorney, pointed out that this is a proposal made by a
property owner for the sale of the property and the EDA has no obligation to do
anything. By taking no action it would be considered as a no vote and the proposal
would be rejected.
Ms. Sharie Huebner, 7609 Bass Lake Road, was recognized. She indicated they
purchased the property 3 years ago for $78,500 on a contract for deed. The loan
payoff amount is $71,800. Ms. Huebner stated the market value is $70,000. Ms.
Huebner maintained that the asking price of $78,500 is not um'easonable. Ms.
Huebner stated she has been in contact with Edina Realty but has postponed any
transaction until a decision is reached by the City. She stated she needs at least
$3,000 above the payoff amount. Under a program with Edina Realty, they would
allow Ms. Huebner credit of $80,000 to be utilized toward purchase of another
property. Mr. Steve Sondrall, City Attorney, pointed out that Edina Realty is in a
better position to offer a higher purchase price than the City.
Commissioner Enck explained why the housing project was cancelled.
The EDA reviewed the $65,000 appraisal on the property which was conducted by
BCL Appraisals, Inc. and considered authorizing a second appraisal by another
appraiser. Councilmember Enck recommended that Ms. Huebner sell the property
on the open market since the EDA is unable to meet her asking price.
MOTION Motion was made by Commissioner Enck, seconded by Commissioner Otten, to
Item 4 reject the purchase agreement offer for 7609 Bass Lake Road. All present voted
in favor. Motion carried.
New Hope EDA September 25, 1995
Page 1
FINANCIAL Discussion Regarding Guidelines for Financial Assistance to Businesses.
ASSISTANCE
Item 5 Mr. Donahue explained that the City's present.policy is a collection of policies. He
emphasized that every development project is different.
President Erickson pointed out that a flexible policy is more effective than a rigid
policy. He noted it is used selectively and he prefers to retain consideration on a
case-by-ca~ basis.
Commissioner Enck questioned whether the policy is legally adequate to handle
denials. If so, he agr~d with continuing to consider development proposals on a
cas~-by-ca~ basis.
IMP. PROJECT 523 Discussion Regarding Development Agreement with Gill Brothers Funeral Chapels,
Item 6 Inc. (Improvement Project No. 523).
Mr. Donahue reviewed the proposal stating it would be a "pay as you go" tax
increment financing project. The arrangement would be for the EDA to reimburse
the developer for eligible costs from the tax increment received from the property
after it is developed as a funeral chapel. Costs eligible for reimbursement could be
up to $387,806.
Commissioner Norby spoke regarding the competitive environment and expressed
reservation about funding issues.
Mr. Sondrall explained that the project is risk-free to the EDA since the project's
eligible costs which are reimbursed are based only on the increment which is
generated. He stated the question before the EDA is how much assistance is
warranted or necessary to get the property developed.
Commission~ Enck communicated his hesitancy to approving the $387,000.
Mr. Donahue recommended a maximum subsidy of $150,000 spread over ten years.
The consensus of the EDA was to authorize the $150,000 subsidy to Gill Brothers
Funeral Chapels and authorize staff to prepare necessary documents.
RENTAL HOUSING Motion Approving a Request for Proposals for Special Needs Rental Housing.
Item 7
MOTION Motion by Commissioner Wehling, seconded by Commissioner Norby, approving
Item 7 the request for proposals for special needs rental housing. All present voted in
favor. Motion carded.
ADJOURNMENT Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to
adjourn the meeting. All present voted in favor. The New Hope EDA adjourned
at 8:57 p.m.
Respectfully submitted,
Valm'ie l~one
City Clerk
New_Hope EDA September 25, 1995
Page 2
Norby, Wehling; and the following voted against the same: None; Absent:
None; whereupon the resolution was declared dulv oassed and adopted,
signed by the president which was attested to by the Executive Director.
IMP. PROJECT 549 President Erickson introduced for discussion Item 7, Discussion Regarding
Item 7 Acquisition of McBrady Property at 7621 Bass Lake Road (Improvement
Project No. 549).
Mr. Donahue stated the property is a large parcel located at the end of the
Bass Lake Road Extension. He stated the City has been working with the
property owner since January regarding the property. The City's appraisal
is $78,000 and the McBrady's appraisal is $119,000. After negotiations,
the property owner is willing to sell the property at $90,000. For
comparison purposes, Mr. Donahue noted that this is considerably less
than if the City had a project and had to pay relocation costs and other
associated development costs.
Mr. Donahue stated this is a key parcel for any future redevelopment in the
area. He proposed to demolish the dwelling and leave the site vacant at
this time. He explained that it would be costly to bring the structure up
to code.
Councilmember Enck clarified that the City desires to acquire the property
through the scattered site housing program since it is a access and safety
issue for city services (snowplowing, emergency response).
The EDA directed staff to prepare a purchase .agreement for sale of the'
Property.
7180 42ND AVENUE PreSident Erickson introduced for discussion Item 8, Discussion Regarding
TIFASSISTANCE Request for Tax Increment Financing Assistance for Car-X/PUD
Item 8 De/velopment at 7180 42nd Avenue North.
_. ...... -~ Mr. Donahue stated David Lasky, owner of the property at 7180 42nd
-- Avenue, has requested consideration of $200,000 in tax increment
financing assistance for a proposed Car-X/PUD at the northeast corner of
42nd and Nevada Avenues. He stated Mr. Lasky has submitted an
application to the Planning Commission for the Car-X facility.
, Commissioner Enck pointed out that the reasons the EDA was supportive
of providing assistance for the Gill Brothers Funeral Chapel project was
because it involved city-owned property,, the property was difficult to
develop due to its unique shape, and it met the goals of the 42nd Avenue
.. Redevelopment Plan.
Commissioner Enck stated he would favor an upgrade to 42nd Avenue but
is not interested in spending funds for an auto-oriented use.
President Erickson emphasized that the parcel is prime property on 42nd
Avenue and he would prefer a proposal which includes the entire property
and perhaps even demolishing the existing structure to create a larger
buildable space.
Commissioner Enck expressed an interest in a project which would also
include the two buildings to the east of the 42nd/Nevada prope~. _ -_
New HoPe EDA October 9, 1995 '~)
Page 3 ~
Commissioner Enck asked the Ciw Attorney to advi ;e the EDA of legal
issues pertaining to a moratorium of auto-related uses for this property.
~_ ..... Mr. Donahue stated there are storm water problems on the site and staff
~ may make a future request to use a small amount of tax increment funds
· to correct problems on the rear of the property since it involves more than
one property.
?
~ The EDA declined interest in utilizing tax increment financing for an auto-
oriented use since an auto-oriented use is generally not compatible with
the 42nd Avenue Redevelopment Plan goals and objectives.
ADJOURNMENT Motion was made by Commissioner Otten, seconded by Commissioner
Wehling, to adjourn the meeting. All present voted in favor. The New
Hope EDA adjourned at 8:31 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA October 9, 1995 ~
Page 4
REQUEST FOR ACTION
originating Department Approved for Agenda Agenda Section
City Manager EDA
10-9-95
Kirk McDonald ~ Item No.
By: Management Assistant
RESOLUTION APPROVING 1995 AMENDMENT TO MASTER MODIFICATION TO
REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS AND REQUESTING
THE APPROVAL OF THE CITY COUNCIL
The attached resolution states that the New Hope Economic Development Authority approves the
"Master Modification" to the Redevelopment and Tax Increment Financing Plans and requests the
approval of the City Council. This resolution should be adopted prior to the City Council public
hearing and prior to the adoption of the Council resolution. The resolution states that the
modification serves the original goals and purposes of the City and HRA by redeveloping property in
the City in order to prevent or reduce blight, blighting factors and the causes of blight by providing
public facilities which will be of benefit to ali residents of the City.
Staff recommends approval of the resolution.
MOTION BY ~/~ SZCOND BY
Review: Administration: Finance:
RFA-O01
October 3, 1995
Kirk McDonald
Management Asst.
City of New Hope
4401Xylon Avenue North
NeW Hope, MN 55428
RE: Resolutions Approving 1995 Amendment to Redevelopment
and TIF Plans
Our File No: 99.11149
Dear Kirk:
Please find enclosed for consideration at the October 9~ 1995
Council and EDA meetlngs the following Resolutions:
1. Council Resolution .- Resolution Approving 1995 Amendment
to Master Modification to Redevelopment Plans and Tax
Increment Financing Plans and Making Findings with
Respect Thereto.
EDA Resolution - Resolution Approving 19gB Amendment
Ya~te~ Modification to Redevelopment P~ans andTax ~
Increment Financing P3ans and Requesting the Approval
the Ctty Counct1. .,"
As you know, a public hearing is scheduled for the October
meeting berore the New HOpe City Council. Since the EDA is
requesting City Council approval for these amendments, it is my
re'commendation the City Council meetin~ be suspende~ prior to ~e
publlc hearing on this matter. The EDA meeting should be called to
order and the EDA Resolution requesting approval for ~he amendmen~
by the City Council should'be passed before consideration of the
amendment at the public hearing calle~ before the City Council.
The Counci) meeting can then be reconvened, the public hearing can
be conducted and closed and the City Council Resolution approving
the amendment should then be passed.
Kirk McDonald
October 3, 1995
Page 2
Please contact me t~ you have any questions or.concerns about this
Dro~osed procedure.
Very truly yours,
8teven A. 8ondrall
slt2
EnclosuFes
Ge: Daniel J. Donehue, City Manager (w/enG)
Va]efta Leone, City Clerk (w/enc)
o°
Commissioner introduced the following
resolution and moved its adoption:
EDA RESOLUTION NO. 95-
RESOLUTION APPROVING 1995 AMENDMENT TO
MASTER MODIFICATION TO REDEVELOPMENT
PLANS AND TAX INCREMENT FINANCING PLANS
AND REQUESTING THE APPROVAL OF THE CITY
COUNCIL
BE IT RESOLVED, by the New Hope Economic Development
Authority (the "EDA"), as follows:
1. Proposed Amendment. The Housing and Redevelopment
Authority in and for the City of New Hope, Minnesota (the "HRA")
has approved a redevelopment plan, as defined in Minnesota
Statutes, Section 469.002, subdivision 16, designated as
Redevelopment Plan 80-2, Redevelopment Plan 81-1, Redevelopmen~
Plan 82-1, Redevelopment Plan 85-1, Redevelopment Plan 85-2 and
Redevelopment Plan 86-1 (the "Redevelopment Plans"), and
redevelopment projects to be undertaken pursuant thereto, as
defined in Minnesota Statutes, Section 469.002, subdivision 14 (the
"Redevelopment Projects"), and that in order to finance the public
redevelopment costs to be incurred by the HRA in connection with
the Redevelopment Plans and the Redevelopment Projects, the HRA has
approved tax increment financing plans, pursuant to the provisions
of Minnesota Statutes, Section 469.175 (the "Financing Plans"),
which establish tax increment financing districts, as defined in
Minnesota Statutes, Section 469.174, subdivision 9, which are
designated by Hennepin County as Tax Increment Financing Districts
Nos. 1601, 1602, 1603, 1604, 1605, 1606, 1607 and 1608 (the
"Districts"). Pursuant to Minnesota Statutes, Section 469.094,
subdivision 2, the City has transferred control of the
Redevelopment Plans, the Financing Plans and the Districts from the
HRA to the EDA. On July 25, 1994, the EDA approved an amendment to
the Redevelopment Plans and the Financing Plans which is entitled
"Master Modification to the Redevelopment Plans and the Tax
Increment Financing Plans" (the "Master Modification") to combine
the areas subject to the Redevelopment Plans and to expand the area
subject to the Redevelopment Plans and to authorize the expenditure
of tax increment revenue derived from the Districts to pay public
redevelopment costs in the additional area made subject to the
Redevelopment Plans by the Master Modification and costs related to
construction of a community center designed to serve the residents
of the City. It is now been proposed that the EDA approve an
additional amendment to the Redevelopment Plans and the Financing
Plans which is entitled "1995 Amendment to Master Modification to
Redevelopment Plans and Tax Increment Financing Plans" (the "1995
Amendment") to expand the area subject to the Redevelopment Plans
and to authorize the expenditure of tax increment revenue derived
from the Districts to pay redevelopment costs in the additional
area made subject to the Redevelopment Plans by the 1995 Amendment.
2. Approval of 1995 Amendment. The 1995 Amendment has been
presented to this Board and is ordered placed on file in the office
of the Executive Director of the EDA, and the 1995 Amendment is
hereby approved, The 1995 Amendment further serves the original
goals and purposes of the City and HRA in approving the
Redevelopment Plans, the Redevelopment Projects and the Financing
Plans, by redeveloping property in the City in order to prevent or
reduce blight, blighting factors and the causes of blight and by
providing public facilities which will be of benefit to all
residents of the City.
3. Presentation to City Council. The 1995 Amendment hereby
approved shall be presented to the City Council for a public
hearing thereon pursuant to Minnesota Statutes, Section 459.029,
subdivision 5 and Section 459.175, subdivision 4. ..
Dated the 9th day of October, 1995.
President
At t est:
Executive Director
The motion for the adoption of the foregoing resolution was
duly seconded by Commissioner , and upon vote
being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted, and
was signed by the President, whose signature was attested by the
Executive Director.
, ~ EDA
REQUF~T FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
10-9-95
Kirk McDonald Item No.
By: Management Assistant By: 5
RESOLUTION RELATING TO REDEVELOPMENT PLAN 85-2: APPROVING REDEVELOPMENT
CONTRACT WITH GILL BROTHERS FUNERAL CHAPELS, INC. (IMPROVEMENT PROJECT
NO. 523)
The enclosed resolution has been prepared by the City Attorney pursuant to the EDA's discussion at the
September 25th EDA meeting regarding providing $150,000 in "pay-as-you-go" Tax Increment
Financing assistance for the Gill Brothers Funeral Chapels, Inc. project on the City-owned property at
42nd & Nevada Avenues. The resolution approves the attached Redevelopment Contract and authorizes
execution by the President and Executive Director. The Contract outlines the original objectives of the
TIF and that the redevelopment is in the best interests of the City. The Contract states that upon
completion of the project the EDA will reimburse the developer up to $150,000 for the cost of the items
outlined in Schedule D (TIF eligible costs such as site improvements, land acquisition, etc.). The
contract also outlines the wage and job goals that must be met to receive the assistance; a net increase
of three (3) jobs within two years after the fn'st reimbursement payment is provided. The jobs must
provide wage levels of not less than the industry standard for the type of job created.
The City Attorney will provide further explanation of the agreement/contraci at the EDA meeting.
Staff recommends approval of the resolution.
MorION Ry ~q'SX"~ SECOND BY /('fi_ ~/~-AfL~I ~
Revl~: Administration: Finance:
CORRICK
STEVEN &. $ONDt~LL ATTORNEYS Ar LAW
MICHAEL I~
MAroON ~. ~'~CHA Edinburgh Execu~ve Office Plea
~u~ c. s~ 8525 E~brook Cross~g
Suite ~203
Brookl~ P~k, M~esom 55443
October 5, 1995
Kirk McDonald
Management Asst.
City of New Hope
~' 4401Xy]on Avenue North
New Hope, MN 55428
RE: Redevelopment Agreement for 7300 42nd Avenue North .'
· with Gill Brothers Funeral Chapels, Inc.
Our File No: 99.11141
Dear Kirk:
Please find enclosed for consideration at the EDA meeting for
October 9, 1995 the following Resolution:
Resolution Relating to Redevelopment Plan 85-2; Approving"~
Redevelopment Contract with Gills Brothers Funera
Chapels, Inc.
Also~"&~closed is the following HRA Resolution authorizing a
purchase agreement for sale of the Redevelopment Property to Gill
Brothers Funeral Chapels, Inc.:
2. Resolution Approving Purchase Contract With Gill Brothers
Funeral Chapels, Inc. Relating'to Sale of Property.
Also enclosed is the Redevelopment Agreement and Purchase Contract
contemplated by these Resolutions.
I have also sent the paper for'publication a Notice calling for the
October 23, 1995 public hearing required by statute for the sale of
this property to Gill Brothers Funeral Chapels,. Inc. These
documents can be approved and signed by the EDA and HRA subject to
conducting the public hearing, however, the signed documents cannot
be delivered to Gill Brothers Funeral Chapels, Inc. until, after the
public hearing is conducted. There is a possibility that the sales
terms could be changed based on information received by the HRA at
Kirk McDonald
October 5, 1995
Page 2
the public hearing. This is highly improbable, but not impossible.
As a result, we should not be making any absolute guarantees to the
buyers about the sale of the property or the Redevelopment Project
until the public hearing is conducted on October 23, 1995.
Contact me if you have any questions.
Very truly you rs,
Steven A. Sondrall
slt2
Enclosures
cc: Daniel J. Donahue, City Manager (w/enc)
Valerie Leone, City Clerk (w/enc)
CORRICK & SONDRALL, P.A.
STEVEN A. SONORAL~ ATTORNEYS AT LAW
MICHAEL R. ~EUR
UA.~. P. U~CHA Edinburgh Execu~ve Office Plea
W,LUAM C. STR~T 8525 Edinbrook Crossing
Suite ~203
Brookl~ P~k, M~neso~ 55~3
~E (Sll) 4~1
~ (Sl~) 4~
October 5, 1995
CMr. Dante1J. McGraw, President
Gill Bros. Funeral Chapel, Inc.
5801 Lyndale Avenue South
Minneapolis, MN 55419
RE: Redevelopment Agreement and Purchase Contract for "
7300 42nd Avenue North
Our File No: 99.11141
Dear Dan:
pPlease find enclosed a proposed Redevelopnmnt Agreement and
Purchase Contract for your funeral home development at the
referenced property.
These documents will be considered at the October 9, 1995 Council
meeting. As we discussed in our October 5, 1995 telephone
conversation, Minnesota law requires a public hearing before the
[-~HRA can consummate the sales transaction. This hearing
V/scheduled for October 23, 1995.
! am recommending to the HRA and EOA that the enclosed documents be
approved at the October 9, 1995 meeting subject to the October 23,
U1995 public hearing. ' As we discussed, the hearing is a statutory
requirement which more than likely will not change, any terms
contained in the enclosed documents unless a major surprise was
brought forth at the public hearing. This is highly Improbable.
The hearing requirement does mean a closing on the property would
be delayed unttl after the hearing. It is my understanding your
current construction plans do not contemplate initiating
construction before ¢~tober 23rd, therefore the closing delay will
not cause you a problem.
Mr. Daniel McGraw
October 5, 1995
Page 2
It is my further understanding the Planning Commission approved
your project subject to a performance bond requirement to guarantee
construction of on-site amenities in public ~mprovements. ! have
not received a bonding letter from the City Engineer and Building
Official outlining the improvements secured by the bond. However,
this will also require an additional development contract relating
to the requirement of your site and building plan approval. When
[ receive that bond letter from the City Engineer, [ will forward
to you a copy of the second development contract.
Please do not hesitate to contact me if you have any questions.
Very truly yours,
oR%GtNAL StGNEO
BY s~EVEN A. soNORAL~
Steven A. Sondrall
New Hope City Attorney
slt2
Enclosures
cc: Kirk McDonald~ Management Assr
CERTIFICATE
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CZTY OF NEW HOPE, MINNESOTA
I, the undersigned being the duly qualified Executive Director
of the Economic Development Authority in and for the City of New
Hope, Minnesota, hereby attest and certify that:
1. As such officer, I am the recording officer of the Economic
Development Authority in and for the City of New Hope, Minnesota
and have the legal custody of the original record from which the
attached resolution was transcribed.
2. I have carefully compared the attached resolution with the
original record of the meeting at which the.resolution was acted
upon.
3. [ find the attached resolution to be a true, correct a~
complete copy of the original:
EDA RESOLUTION NO, 95-~
Resolution Relating to Redevelopment Plan 85-2;
Approving Redevelopment Contract with Gill Brothers
Funeral Chapels,
4. [ further certify that the affirmative vote on said
resolution was ayes, nayes, and absent/abstention.
5. Said meeting was duly held, pursuant to call and notice
thereof, as required by law, and a quorum was present.
WITNESS my hand officially as such Executive Director this
day of .., 1995.
Daniel J. Donahue,
Executive Director
Commissioner introduced the .'following
resolution and moved its adoption:
EDA RESOLUTION NO. 95-__
RESOLUTION RELATING TO REDEVELOPMENT PLAN
85-2; APPROVING REDEVELOPMENT CONTRACT
WITH GILLS BROTHERS FUNERAL CHAPELS, INC.
BE IT RESOLVED by the Economic Development Authority in and
for the City of New Hope, Minnesota as'follows:
1, Proposed Tax Increment Financing Assistance, It has been
proposed that the Housing and Redevelopment Authority in and for
the City of New Hope sell certain property to Gill Brothers Funeral
Chapels, Inc., a Minnesota corporation (the "Redeveloper"), for
construction thereon by the Redeveloper of a funeral chapel (the
"Project"). It has been further proposed that the EDA provide tax
increment financing assistance to the Redeveloper in connecticm
with the Project. There has been prepared and presented to this
Board a draft of a Redevelopment Contract between the EDA and
Redeveloper (the "Agreement"), which provides for the use of tax
increment revenue from the Project to reimburse the Redeveloper for
certain eligible public redevelopment costs of the Project.
2. Approval of Agreement. The execution and delivery by the
EDA of the Agreement is hereby approved. The President and
Executive Director are hereby authorized and directed to execute
and deliver the Agreement on behalf of the EDA in the form
presented to this Board with such additions and deletions thereto
as may be approved by the President and Executive Director, such
approval to be conclusively presumed by their execution and
delivery of the Agreement. The President, Executive Director and
other officers of the EDA are hereby authorized and directed to
execute and deliver such other documents which may be required
under the terms of the Agreement and to take such other actions as
may be required or appropriate to effectuate the transactions
thereunder.
Dated this 9th day of October, 1995.
President
Attest:
Executive Director
The motion for the adoption of the foregoing resolution was
duly seconded by Commissioner , and upon vote
being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted, and
was signed by the President, whose signature was attested by the
Executive Director.
REDEVELOPMENT AGREEMENT
REDEVELOPMENT PROJECT NO. 85-2
(42ND AVENUE/CITY CENTER AREA)
ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF NEW HOPE, MINNESOTA
AND
GILL BROTHERS FUNERAL CHAPELS, INC.
October 9, 1995
TABLE OF CONTENTS
Section 1.1 Definitions ............................................
Section 2.1 By EDA ................................................
Section 2.2 ByRedeve]oper ........................................
Sect ion 3.1 Use ...................................................
Section 3.2 Declaration of Restrictions ............................
Section 4.1 Construction Plans ....................................
Section 4,2 Construction of Minimum Improvements ..................
Section 4,3 Certificate of Completion ..............................
Section 5,1 Defense of Claims .....................................
Sect ion 5.2 Insurance .............................................
Sect ion 6.1 Reimbursement of Redeveloper .................. -,,
Section 6,2 Wage and Job Goals .....................................
Section 7.1 Transfer of Property and Assignment ....................
Section 7,2 Termination of Limitations on Transfer ................
Section 8,1 Events of Default .....................................
Section 8,2 Remedies on Default ...................................
Section 8.3 No Remedy Exclusive ........................ ...........
Sect ion 8.4Waivers ...............................................
Section 9,1 Conflict of Interests; EDA Representatives
Not InctividuallyLiable ...........................................
Section 9.2 Equal Employment Opportunity ..........................
Section 9.3 Restrictions on Use ...................................
-i-
Section 9.4 Titles of Articles and Sections .......................
Section 9,5 Notices and Demands ...................................
Section 9,6 Term of Agreement .....................................
Sect ion 9,7 Counterparts ..........................................
Schedu]e A Redevelopment Property
Schedule B Project Description
Schedule C Time Table
Schedule D Portion of Project the Costs of Which are Eligible for
Reimbursement pursuant to Section 6,1
Exhibit A Certificate of Completion
Exhibit B Covenants and Restrictions
-ii-
REDEVELOPMENT CONTRACT~
This Agreement is made as of , 1995, by and
between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
NEW HOPE, MINNESOTA, a public body corporate and politic (the
"EDA"), and GILL BROTHERS FUNERAL CHAPELS, INC., a Minnesota
corporation ("Redeveloper").
WITNESSETH:
WHEREAS, the EDA was created pursuant to state ]aw now
codified as Minnesota Statutes, Sections 469.090 through 469.1081
(the "Act") and was authorized to transact business and exercise
its powers by an ordinance and resolution of the City Council of
the City of New Hope (the "City") adopted on March 27, 1989; and
WHEREAS, in furtherance of the objectives of the Act,.the EDA
has assumed control of a program established and undertaken by the
Housing and Redevelopment Authority in and for the City of New Ho~e
for the clearance and redevelopment of blighted, vacant and unused
areas of the City and in this connection is engaged in carrying out
a redevelopment project as defined in Minnesota Statutes, Section
469.002, Subdivision 14, known as Redevelopment Project No. 8§-2
(the "Redevelopment Project") in the area in the City encompassing
the property abutting on the north side of 42nd Avenue North from
Nevada Avenue North west to the railroad tracks as shown on
Schedule A1 attached hereto (the "Project Area"); and
WHEREAS, as of the date of this Agreement there has been
prepared and approved by the EDA and the City Council pursuant to
the Act a redevelopment plan for the Redevelopment Project, dated
December 23, 1985, as amended by an amendment thereto dated June
22, 1987 (as so amended, the "Redevelopment Plan"); and
WHEREAS, on December 23, 1985 the City Council adopted a
resolution establishing the Project Area as a tax increment
financing district; and
WHEREAS, the major objectives of the Redevelopment Plan are
to:
1. Provide compatible and complementary land uses.
2. Provide more homogeneous land uses and street treatment
along 42nd Avenue in order to unify development and
provide a positive image of the City.
3. Promote and secure development and redevelopment in a
manner that allows the most logical and efficient
arrangement and intensity of land uses.
4. Promote and secure the retention of existing jobs and
gain new employment opportunities in the area.
5. Promote and secure development and redevelopment in a
manner that will have minimum adverse impact on the
environment.
6. To undertake certain land acquisition, parcel assembly
and parcel disposition necessary to eliminate certain
substandard and non-conforming uses and buildings, and to
assemble logical, conforming and more efficient building
sites.
7. To promote and secure increased landscaping on private
property and public rights of way to improve the
asthetics, provide identity for the commercial areas and
improve transitions between commercial and residenti'al
areas.
and
WHEREAS, in order to achieve the objectives of the
Redevelopment Plan, the EDA intends to provide aid and assistance
to the Redeveloper through tax increment financing, as described in
Minnesota Statutes, Sections 469.174 through 469.179 to finance the
cost of the acquisition by the Redeveloper of property located in
the Project Area described and shown on Schedules A and A-1
attached, on which the Redeveloper will construct a funeral chapel;
and
WHEREAS, the EDA and the City believe that redevelopment of a
portion of the Project Area pursuant to this Agreement is in the
best interests of the City &nd benefits the health, safety, morals
and welfare of its residents, and complies with the applicable
state and local laws and requirements under which the Redevelopment
Project has been undertaken and is being assisted.
NOW, THEREFORE, in consideration of the foregoing premises and
the mutual obligations set forth in this Agreement, the parties
hereto hereby agree as follows:
2
ARTICLE 1
Definitions
Section 1.1. Definitions. In this Agreement, unless a
different meaning clearly appears from the context:
"Act" means Minnesota Statutes, Sections 469.090 through 469.1081
and 469.001 through 469.047.
"Agreement" means this Agreement, as the same may be from time to
time modified, amended or supplemented.
"Certificate of Completion" means a certification in the form
attached as Exhibit A, to be provided to Redeveloper pursuant to
this Agreement.
"City" means the City of New Hope, Minnesota, a Minnesota municipal
corporation,
"Construction Plans" means the plans, specifications, drawings ~d
related documents for the construction work to be performed by the
Redeveloper on the Redevelopment Property as a part of the Project,
which (a) shall be at least as detailed as the plans,
specifications, drawings and related documents which are submitted
to the building official of the City and (b) sh&ll include at least
the following: (1) site pl&n; (2) foundation plan; (3) basement
plans; (4) floor pl&n for each floor; (5) elevations on all sides;
(6) landscape plan; (7) grading plan; and (8) utility plan.
"Event of Default" means as set forth in Section 9.01 hereof.
"EDA" means the Economic Development Authority of New Hope,
Minnesota, a public body corporate and politic under the laws of
the State of Minnesota.
"Improvements" means the buildings or other improvements located on
the Redevelopment Property.
"Mortgage" means any mortgage made by Redeveloper which covers, in
whole or in part, the Redevelopment Property.
"Mortgagee" means the owner or holder of a Mortgage.
"Net Proceeds" means any proceeds paid by an insurer to Redeveloper
aha the EPA under a policy or policies of insurance required under
Article 5 and remaining after deducting all expenses (including
fees ana disbursements of counsel) incurred in the collection of
the proceeds.
3
"Project" means the acquisition and clearing of the Redevelopment
Property and the construction thereon of a two story colonial style
funeral chapel with approximately 6,500 square feet on the first
floor with an exterior drop-off canopy and circular drive, and the
construction of site improvements and other improvements of a
public nature, all as further described in Schedule B attached to
this Agreement.
"Pro]ect Area" means the area designated for redevelopment by the
EPA pursuant to the Redevelopment Plan and the Act.
"Plans" means Redeveioper~s plans dated , 1995 for
the Project as submitted to the EDA, with any subsequent amendments
approved by the EDA.
"Redeveloper" means Gill Brothers Funeral Chapels, Inc., a
Minnesota corporation.
"Redevelopment Plan" means the Redevelopment Plan approved by the
City on December 23, 1985, as amended by an amendment thereto dated
June 22, 1987.
"Redevelopment Property" means the portion of the Project Area
described on Schedule A and A-1 attached hereto.
"Restrictions" means the easements, covenants, conditions and
restrictions set forth in Exhibit B.
"Section" means a Section of this Agreement, unless used in
reference to Minnesota Statutes.
"State" means the State of Minnesota.
"Tax Increment" means tax increment derived by the EDA from the
Redevelopment Property following the issuance of the Certificate of
Completion by the EDA pursuant to Section 4.3 hereof. Tax
Increment shall not include any tax increment derived by the EDA or
City from any other property in the Tax Increment District or
elsewhere in the City.
"Tax Increment Act" means Minnesota Statutes, Sections 469.!74
through 469.179.
"Tax Increment District" means Tax Increment Financing District 85-
2 created by the EDA pursuant to the Tax Increment Financing Plan.
"Tax Increment Financing Plan" means Tax Increment Financing Plan
85-2 approved by the HOusing and Redevelopment Authority and the
4
City Council and dated December 23, 1985, the control over which
the EDA has assumed by resolution dated April 10, 1989.
Time Table" means the schedule of performance dates for certain
actions by Redeveloper under this Agreement, attached hereto as
Schedule C and made a part hereof.
"Unavoidable Delay" means a failure or delay in a party's
performance of its obligations under this Agreement, or during any
cure period specified in this Agreement which does not entail the
mere payment of money, not within the party's reasonable control,
incluaing but not limited to acts of God, governmental agencies,
the other party, strikes, labor disputes (except disputes which
coula be resolved by using union labor), fire or other casualty, or
lack of materials; provided that within 10 days after a party
impaired by the delay has knowledge of the delay it shall give the
other party notice of the delay and the estimated length of the
delay, and shall give the other party notice of the actual length
of the delay within 10 days after the cause of the del&y has ceased
to exist. The parties shall pursue with reasonable diligence
avoidance and removal of any such delay. Unavoidable Delay shall
not extend performance of any oblig&tion unless the notices
required in this definition are given as herein required.
ARTICLE 2
Representations and Warranties
Section 2.1. By EDA. EDA makes the following representations
to Redeveloper:
(a) EDA is an economic development authori.ty duly organized
and existing under the laws of Minnesota. Under the provisions of
the Act, EDA has the power to enter into this Agreement and carry
out its obligations hereunder.
(b) The Redevelopment Project is a "redevelopment project"
within the meaning of the Act and was created, adopted and approved
in accordance with the terms of the Act.
(c) The Tax Increment District is a "tax increment district"
within the meaning of the Tax Increment Act and was created,
adopted and approved in : accordance with the terms of the Tax
Increment Act.
(d) The costs related to the portion of the Project described
in Schedule D hereto constitute public redevelopment costs as
5
defined in Minnesota Statutes, Section 469.033, which are permitted
to be paid from Tax Increment, pursuant to Minnesota Statutes,
Section 469.176. The EDA proposes to financially assist Redeveloper
by reimbursing all or a portion of such costs paid by the
Redeveloper from Tax Increment.
Section 2.2. By Redeveloper. Redeveloper represents and
warrants that:
(a) Redeveloper is a Minnesota for profit corporation
organized and incorporated under the. laws of Minnesota, under no
legal disability and has power to en'ter into this Agreement.
(b) Redeveloper will, subject to Unavoidable Delays, complete
the Project in accordance with the terms of this Agreement, the
Redevelopment Plan, the Act, and all local, state and federal laws
and regulations.
(c) Redeveloper has received no notice or communication from
any local, state or federal official that the activities
Redeveloper, the City or EDA with respect to the Redevelopment
Property may be or will be in violation of any environmental law or
regulation. Redeveloper is aware of no facts the existence of which
would cause it to be in violation of any local, state or federal
environmental law, regulation or review procedure with respect to
the Redevelopment Property.
(d) Neither the execution or delivery of this Agreement, the
consummation of the transactions contemplated hereby, nor the
fulfillment of or compliance with the terms and conditions of this
Agreement ~s prevented by, limited by, conflicts with, or results
in a breach of, any restriction, agreement or instrument to which
Redeveloper is now a party or by which it is bound.
(e) The Redeveloper (i) is not in default in the payment of
the principal of or interest on any indebtedness for borrowed
money; or (ii) is not in default under any instrument or agreement
under and subject to which any indebtedness for borrowed money has
been issued.
(f) The Redeveloper would not undertake the Project but for
the tax increment financing assistance being provided by the EDA
hereunder.
(g) No member of the governing body of the City or EDA or any
other officer of the City and EDA has any direct or indirect
financial interest in the Redeveloper, the Redevelopment Property
or the Project.
ARTICLE 3
Use of Redevelopment Property; Restrictions
Section 3.1 Use. Redeveloper's use of the Redevelopment
Property shall be subject to and in compliance with all of the
conditions, covenants, restrictions and limitations imposed by the
Redevelopment Plan, this Agreement, the Restrictions and all
applicable laws, ordinances and regulations.
Section 3.2 Declaration of Restrictions. Redeveloper shall
prepare, execute, and record on the title to the Redevelopment
Property a Declaration of Covenants and Restrictions, in form
approved by the EDA, which includes the Restrictions set forth on
Exhibit B, and shall cause each existing Mortgagee to execute an
appropriate instrument in form satisfactory to the EDA consenting
to and agreeing to be bound by the Restrictions in the event it
becomes a record owner of all or a part of the Redevelopment
Property.
oo
ARTICLE 4
Completion of Project
Section 4.1 Construction Plans. Redeveloper shall submit
Construction Plans to the EDA according to the Time Table. The
Construction Plans shall provide for construction of the portion of
the Project consisting of construction in conformity with the
Redevelopment Plan, the Plans, this Agreement, and all applicable
state and local laws and regulations. The EDA shall approve the
Construction Plans in writing if no Event of Default has occurred
and, in the reasonable discretion of the EDA, the Construction
Plans: (a) substantially conform to the Plans and subsequent
amendments approved by the EDA; (b) conform to the terms and
conditions of this Agreement; (c) conform to the terms and
conditions of the Redevelopment Plan; (d) conform to all applicable
federal, state and local laws, ordinances, rules and regulations;
(e) are adequate to provide for construction of the portion of the
Project consisting of construction; and (f) provide for minimum
disturbance to neighboring properties during construction.
No approval by the EDA shall relieve Redeveloper of the
obligation to comply with the terms of this Agreement, the terms of
the Redevelopment Plan, applicable federal, state and local laws,
ordinances, rules and regulations, or to construct the Minimum
Improvements. No approval by the EDA shall constitute a waiver of
an Event of Default. Any disapproval of the Construction Plans
shall set forth the reasons therefor, and shall be made within 30
days after the date of their receipt by the EDA. If EDA rejects the
Construction Plans, in whole or in part, Redeveloper shall submit
new or corrected Construction Plans within 30 days after written
notification to Redeveloper of the rejection. The provisions of
this Section relating to approval, rejection and resubmission of
corrected Construction Plans shall continue to apply until the
Construction Plans have been approved by EDA.
Section 4.2 Undertaking of Pro~ect.
(a) SubjeCt to Unavoidable Delays, Redeveloper will complete
the Project all in accordance with the Plans, the .Construction
Plans and the Time Table.
(b) All work with respect to the portion of the Project
consisting of construction shall be in substantial conformity with
the Construction Plans approved by the EDA. Redeveloper shall
promptly begin the Project and diligently prosecute the Project to
completion. Redeveloper shall make reports, in such detail and-at
such times as may reasonably be requested by the EDA, as to the
actual progress of Redeveloper with respect to. the Project.
(c) Redeveloper shall not interfere with, or construct any
improvements over, any public street or utility easement without
the prior written approyal of the City. All connections to public
utility lines and facilities shall be subject to approval of the
City and any private utility company involved. Except for public
improvements which are assessable by the City or other governmental
body against other benefitted properties, all street and utility
installations, relocations, alterations and restorations shall be
at Redeveloperr'S expense and without expense to the. City or the
EDA. Redeveloper at its own expense shall replace any public
facilities or utilities damaged during the Project.
Section 4.3 Certificate of Completion.
(a) Promptly after completion of the Project in accordance
with this Agreement, Redeyeloper will provide the EDA with a
certificate of substantial completion from Redeveloper's architect
and the certificate of Redeveloper required by Section 5.1 hereof,
and the EDA will furnish Redeveloper with an appropriate
Certificate of Completion as conclusive evidence of satisfaction
and termination of the agreements and covenants of this Agreement
with respect to the obligations of Redeveloper to complete the
Project. The furnishing by the EDA of the Certificate of Completion
shall not constitute evidence of compliance with or satisfaction of
any obligation of Redeveloper to any Mortgagee.
8
(D) If the EDA shall refuse or fail to provide the Certificate
of Completion, the EPA shall, within 15 days after the Redeveloper
provides the architect's certificate referenced in Section 4,3(a),
provide Redeveloper with a written statement specifying in what
respects Redeveloper has failed to complete the Project in
accordance with this Agreement, or is otherwise in default, and
what measures or acts will be necessary, in the opinion of the EDA,
for Redeveloper to obtain the Certificate of Completion.
ARTICLE 5
Defense of Claims; Insurance; Condemnation
Section 5.1 Defense of Claims. Redeveloper shall indemnify and
hold harmless the EDA and the City and their respective officers,
employees and agents for any loss, damages and expenses (including
attorneys' fees) in connection with any claims or proceedings
arising from damages or injuries received or sustained by any
person or property by reason of any actions or omissions of
Redeveloper or its contractors, agents, officers or employees
arising out of or relating to this Agreement or the transactions
contemplated by this Agreement, other than claims or proceedings
arising from any negligent or unlawful acts or omissions of the
EDA, the City or their contractors, agents, officers or employees.
Promptly after receipt by the EDA or City of notice of t'he
commencement of any action in respect of which indemnity may be
sought against the Redeveloper under this Section 5.1, such person
will notify the Redeveloper in writing of the commencement thereof,
and, subject to the provisions hereinafter stated, the Redeveloper
shall assume the defense of such action (including the employment
of counsel, who shall be counsel satisfactory to the EDA or City,
as the case may be, and the payment of expenses) insofar as such
action shall relate to any alleged liability in respect of which
indemnity may be sought against the Redeveloper. The EDA or the
City shall have the right to employ separate counsel in any such
action and to participate in the defense thereof, but the fees and
expenses of such counsel shall not be at the expense of the
Redeveloper unless the employment of such counsel has been
specifically authorized by the Redeveloper. The Redeveloper shall
not be liable to indemnify any person for any settlement of any
such action effected without its consent. The omission to notify
the Redeveloper as herein provided will not relieve it from any
liability which it may have to any indemnified party pursuant
hereto, otherwise than under this section.
9
Section 5.2 ~nsurance.
(a) The Redeveloper shall keep and maintain the Redevelopment
Property and Improvements at all times insured against such risks
and in such amounts, with such deductible provisions, as are
customary in connection with facilities of the type and size
comparable to the Improvements, and the Redeveloper shall carry and
maintain, or cause to be carried and maintained, and pay or cause
to be paid timely the premiums for direct damage insurance covering
all risks of loss, including, but not limited to, the following:
(1) fire
(2) extended coverage perils
(3) vandalism and malicious mischief
(4) boiler explosion (but only if steam boilers are present)
(5) water damage
(6) debris removal
(7) collapse
on a replacement cost basis in an amount equivalent to the full
insurable value thereof. ("Full insurable value" shall include the
actual replacement cost of the [mprovements (exclusive of
foundations and footings) without deduction for architectural,
engineering, legal or administrative fees or for depreciation.)
[nsurance in effect with respect to any portion of the [mprovements
to be renovated or remodeled as a part of the Project prior to the
issuance by the EDA of a Completion Certificate under Section 4.3
hereof with respect thereto shall be maintained on an "all-risk"
builder's risk basis during the course of construction. The
policies required by this Section 5.2 shall be subject to a no
coinsurance clause or contain an agreed amount clause, and may
contain a deductibility provision not exceeding $25,000.
(b) Policies of insurance required by this Section 4.3 shall
assure and be payable to the Redeveloper, and shall provide for
release of insurance proceeds to the Redeveloper for restoration of
loss. The EDA shall be furnished certificates showing the existence
of such insurance. [n case of loss, the Redeveloper is hereby
authorized to adjust the loss and execute proof thereof in the name
of all parties in interest. The Redeveloper shall annually file
with the EDA a schedule describing all such policies in force,
including the types of insurance, names of insurers, policy
numbers, effective dates, terms of duration or any other
information the EDA deems pertinent. Such list shall be accompanied
by a certificate executed by the Redeveloper stating that, to the
best of the knowledge of the Redeveloper, insurance on the
Improvements then in force complies with this Section 4.3.
10
ARTICLE 6
Reimbursement of Redeveloper; Job and Wage Goals
Section 6.1 Reimbursement of Redeveloper. Upon completion of
the Project the Redeveloper will deliver a certificate to the EDA
certifying that the costs for the items described in Schedule D
hereto have been paid by the Redeveloper and the aggregate amount
of such costs. The EDA agrees to reimburse the Redeveloper for
such cost up to an amount equal to the lessor of (i) $150,000 or
(ii) the aggregate amount of such costs as set forth in the
certificate of the Redeveloper delivered pursuant to Section 6.1
(the "Reimbursement Amount"). The 'payment by the EDA of the
Reimbursement Amount shall be made solely from Tax Increment
received by the EDA on or prior to December 31, 2006. On each
August 1 and February 1 following the issuance of the Certificate
of Completion under Section 4.3 hereof the EDA shall pay to the
· Redeveloper all Tax Increment received by the EDA during the
preceding six (5) month period. Such payments shall continue until
February 1, 2007 or until the aggregate amount paid to the
Redeveloper under this Section 6.1 equals the Reimbursement Amount.
The EDA makes no representation or warranty that the Tax Increment
derived from the Redevelopment Property will be sufficient to fully
pay the Reimbursement Amount. No funds other than Tax Increment
derived from the Redevelopment Property shall be used by the EDA to
pay the reimbursement amount.
Section 5.2 Wage and Job Goals. The Redeveloper agrees that
for purposes of meeting the requirements of Minnesota Statutes,
Section 116J.991, that the Project will provide a net increase of
3 jobs in Minnesota provided by the Redeveloper within two (2)
years after the first reimbursement payment is provided to the
Redeveloper under Section 6.2 hereof, which jobs will have wage
levels of not less than the then industry~standards for the type of
job created, On or before March 31 of each year the Redeveloper
will report to the EDA the number of new jobs in the City provided
by the Project and the wages for such jobs in the preceding
calendar year and such other information as is required by the EDA
to complete the report to the Minnesota Department of Trade and
Economic Development required by Minnesota Statutes, Section
116J.991. If the Redeveloper fails to meet the goals set forth in
this Section 6.2 it shall repay to the EDA all amounts paid to the
Redeveloper by the EDA under Section 6.1 hereof. If Minnesota
Statutes, Section 116J.991 is amended or repealed, this Section 6.2
shall be amended to conform to it or deleted.
11
ARTICLE 7
Prohibitions A9ainst Assignment and Transfer
Section 7.1 Transfer of Property and Assignment. Redeveloper
has not made and will not make, or suffer to be made, any total or
partial sale, assignment, conveyance, lease (other than leases of
space in the professional office building constructed as a part of
the Project), or other transfer, with respect to this Agreement or
the Redevelopment Property or any part thereof or any interest
therein, or any contract or agreement to do any of the same,
without the prior written approval of the EDA. The EDA shall be
entitled to require as conditions to any such approval that: (i)
t~e proposed transferee have the qualifications and financial
responsibility, as reasonably determined by the EDA, necessary and
adequate to fulfill the obligations undertaken in this Agreement by
Redeveloper; (ii) the proposed transferee, by recordable instrument
satisfactory to the EDA shall, for itself and its successors and
assigns, assume all of the obligations of Redeveloper under this
Agreement. No transfer of, or change with respect to, ownership in
the Redevelopment Property or any part thereof, or any intere4~t
therein, however consummated or occurring and whether voluntary or
involuntary, shall operate, legally or practically, to deprive or
limit the EDA of or with respect to any rights or remedies or
controls provided in or resulting from this Agreement with respect
to the Redevelopment Property and the completion of the Project'
that the EDA would have had, had there been no such transfer or
change. There shall be submitted to the EDA for review all legal
documents relating to the transfer.
In the absence of specific written agreement by the EDA to the
contrary, no such transfer or approval by the EDA thereof shall be
deemed to rel. ieve Redeveloper, or any other party bound in any way
by this Agreement or otherwise with respect to the completion of
the Project, from any of its obligations with respect thereto.
7.2 Termination of Limitations on Transfer. The provisions of
Section 7.1 shall terminate at such time as the Certificate of
Completion has been issued by the EDA under Section 4.3 of this
Agreement with respect to the Project.
ARTICLE 8
Events of Default
Section 8.1 Events of Default. The following shall be "Events
of Default" under this Agreement and the term "Event of Default"
shall mean, whenever it is used in this Agreement (unless the
context otherwise provides), any one or more of the following
12
events which occurs and continues for more than 30 days after
notice by the EDA to Redeveloper of such default (and the term
"aefault" shall mean any event which would with the passage of time
or giving of notice, or both, be an "Event of Default" hereunder):
(a) Failure of Redeveloper to complete the Project as required
hereunder.
(b) Failure of Redeveloper to furnish the Construction Plans
as required hereunder.
(c) Failure of Redeveloper to observe and perform any other
covenant, condition, obligation or agreement on his part to be
observed or performed hereunder or under the Restrictions.
(e) If Redeveloper shall admit in writing his inability to pay
its debts generally as they become due, or shall file a petition in
bankruptcy, or shall make an assignment for the benefit of his
creditors, or shall consent to the appointment of a receiver of
itself or of the whole or any substantial part of the Redevelopment
Property.
(f) Zf Redeveloper shall fail to meet the job and wage goals
with respect to the Project set forth in Section 6.2 of this
Agreement.
Section 8.2 Remedies on Default. Whenever any Event of Default
referred to in Section 8.1 occurs, the EDA may take any one or more
of the following actions:
(a) Suspend its performance under this Agreement until it
receives assurances from Redeveloper, deemed adequate by the EDA,
that Redeveloper will cure its default and continue its performance
under this Agreement.
(b) Terminate all rights of Redeveloper under this Agreement.
(c) Withhold the Certificate of completion.
(d) Terminate the payments to the Redeveloper under Section
6.1 of this Agreement.
(e) Take whatever action at law or in equity may appear
necessary or desirable to the EDA to enforce performance and
observance of any obligation, agreement, or covenant of the
Redeveloper under this Agreement.
13
Section 8.3. No Remedy Exclusive. No remedy herein conferred
upon or reserved to the EDA is intended to be exclusive of any
other avai]able remedy or remedies, but each and every such remedy
shall be cumulative and shall be in addition to every other remedy
given under this Agreement or now or hereafter existing at law or
in equity or by statute. No delay or omission to exercise any right
or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such
right and power may be exercised from time to time and as often as
may be deemed expedient. In order to entitle the EDA or Redeveloper
to exercise any remedy reserved to it, it shall not be necessary to
give notice, other than such notice as may be required under this
Agreement.
Section 8.4. Waivers. All waivers by the EDA, shall be
writing. If any provision of this Agreement is breached by either
party and thereafter waived by the other party, such waiver shall
be limited to the particular breach so waived and shall not be
deemed to waive any other concurrent, previous or subsequent bre~ch
hereunder.
ARTICLE 9
Additional Provisions
Section 9.1 Conflict of Interests: EDA and City
Representatives Not Individually Liable. No member, official,
employee, or consultant or employees of the consultants of the EDA
or the City shall have any personal interest, direct or indirect,
in this Agreement, nor shall any such member, official, consultant
or the con&ultant~s, employees or employee participate in any
decision relating to this Agreement which affects his or her
personal interests or the interests of any corporation,
partnership, or association in which he or she is directly or
indirectly interested. No member, official, consultant or the
consultant's employees, or employee of the EDA or the City shall be
personally liable to Redeveloper, or any successor in interest, in
the event of any default or breach by the EDA or the City or for
any amount which may become due to Redeveloper or successor or on
any obligations under the terms of this Agreement.
Section 9.2 Equal Employment. Opportunity. Redeveloper, for
itsetf and its successors and assigns, agrees that during the
construction of the Project it will comply with any applicable
affirmative action and nondiscrimination laws or regulations.
14
Section 9.3 Restrictions on Use. Redeveloper agrees for
itself, and its successors and assigns, and every successor in
interest to the Redevelopment Property, or any part thereof, that
Redeveloper, and such successors and assigns, shall devote the
Reaevelopment Property to, and only to and in accordance with, the
uses specified in the Redevelopment Plan and this Agreement, and
shalt not discriminate upon the basis of race, color, creed, sex or
national origin in the sale, lease, or rental or in the use or
occupancy of the Redevelopment Property or any improvements erected
or to be erected thereon, or any part thereof.
Section 9.4 Titles of Articles and Sections. Any titles of the
several parts, Articles, and Sections of this Agreement are
inserted for convenience of reference only and shall be disregarded
in construing or interpreting any of its provisions.
Section 9.5 Notices and Demands. Except as otherwise expressly
provided in this Agreement, a notice, demand, or other
communication under this Agreement by either party to the other
shall be sufficiently given or delivered if it is dispatched 'by
registered or certified mail, postage prepaid, return receipt
requested, or delivered personally as follows:.
(a) in the case of Redeveloper, addressed to or delivered
personally to Redeveloper at Gill Brothers Funeral Chapels, [nc,,
c/o Daniel J, McGraw, Executive Office, Southwest Chapel, 5801
Lyndale Avenue So,, Minneapolis, MN 55419,
(b) in the case of the EDA, addressed or delivered personally
to the EDA's Executive Director, 4401Xylon Avenue North, New Hope,
Minnesota 55428;
(c) in the case of the City addressed or delivered personally
to the City Manager at 4401Xy]on Avenue North, New Hope, Minnesota
55428;
or at such other address with respect to any such party as that
party may, from time to time, designate in writing and forward to
the other parties as provided in this Section.
Section 9.6 Term of Agreement. This Agreement shall terminate
upon the later to occur of (i) December 31, 2006, or (ii) the
payment in full of all payments to be made under Section 6.1
hereof; provided that notwithstanding the termination of this
Agreement, the Restrictions shall remain in full force and effect
until terminated in accordance with its terms.
15
Section 9.7. Counterparts. This Agreement is executed in any
number of counterparts, each of which shall constitute one and the
same instrument,
IN WITNESS WHEREOF, the parties have caused this Agreement to
be du]y executed as of the date first above written,
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CiTY OF NEW HOPE,
MINNESOTA
By: "
its President
By:
its Executive Director
GILL BROTHERS FUNERAL CHAPELS, INC.
By:
Daniel J. McGraw,
Its President
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this
day of , 1995, by the President and Executive
Director Economic Development Authority in and for the City of New
Hope, Minnesota.
Notary Public
16
STATE OF M]:NNESOTA )
)SS
COUNTY OF HENNEP]'N )
The foregoing instrument was acknowledged before me this
day of , 1995, Daniei J. McGraw, President,
Gilt Brothers Funeral Chapels, Inc., a Minnesota corporation, on
behalf of said corporation.
Notary Public
DRAFTED BY:
CORRICK & SONDRALL, PoA.
8525 Edinbrook Crossing, #203 '
Brooklyn Park, MN 55443
17
SCHEDULE A
REDEVELOPMENT PROPERTY
Lot 1, Block 1, City Center Addition, commonly known as 7300
42nd Avenue North
P[D No: 17-118-21-21-0054
A-1
-15304 S0'.50'26'E
N. o ~ NEVADA AVE. N I '~
-- - 238.05 S0°50'26'E .....
-.....~ --.
Schedu. le
SCHEDULE B
PROJECT DESCRIPTION
A 7,800 sq. ft. funeral home designed as a residential-style
one-story professional building constructed in accordance with
the follow~ng described plans submitted to the EDA by the
Redeveloper. Said documents are incorporated into this
Agreement by reference as if fully set out herein.
1. Site Plan
2. Survey
3. Floor Plan
4. Elevations
5. Landscape Plan and Schedule
6. Redeveloper's Project Description -'
B-1
SCHEDULE C
The following events shall take place, subject to Unavoidable
Detays (as defined in this Agreement) by the date specified.
TIME TABLE
Redevelopment
Contract
Section Task Date
5.2 Redeveloper provides proof of November, 1995
insurance.
4.1 Construction Plans submitted to October, 1995
EDA and City.
a. EDA disapproval (30 days) October, 1995'
b. Redeveloper resubmits Plans October, 1995
(30 days)
4.2 Project begins. November, 1995
4.2 Project completed. July, 1995
4.3 EDA issues or refuses to issue July, 1995
Certificate of Completion.
C-1
SCHEDULE D
PORTION OF PROJECT THE COSTS OF WHICH ARE
ELIGIBLE FOR REIMBURSEMENT FROM BOND
LAND $254,826
EXCAVATION & BACKFILL 28,800
LANDSCAPING & SPRINKLING 22,700
SANITARY SEWER & WATER 14,400
PARKING LOT 27,600
CURBING 9~480
TOTAL: $357,806
D-1
EXHIBIT A
CERTIFICATE OF COMPLETION
WHEREAS, Gill Brothers Funeral Chapels, Inc., a Minnesota
corporation ("Owner") is the owner of the property in the County of
Hennep~n and State of Minnesota described on Exhibit 1 attached
hereto and made a part hereof ("Property"); and
WHEREAS, the Property is subject to the provisions of a
certain Redevelopment Agreement (the '"Agreement") dated October 9,
1995 by and between Owner and the Economic Development Authority in
and for the City of New Hope, Minnesota (the"EDA"); and
WHEREAS, Owner has fully and duly performed all of the
covenants and conditions of Owner under the Agreement with respect
to the completion of the Project (as defined in the Agreement);
NOW, THEREFORE, it is hereby certified that all requiremeffts
of Owner under the Agreement with respect to the completion of the
Project have been completed and duly and fully performed, and this
instrument is to be conclusive evidence of the satisfactory
termination of the covenants and conditions of the Agreement as
they relate to the completion of the Project, All other covenants
and conditions of the Agreement shall remain in effect and are not
terminated hereby,
Dated this day of , 1995.
ECONOMZC DEVELOPMENT AUTHORZTY
IN AND FOR THE czTY OF NEW HOPE,
MINNESOTA,
By:
Its President
By:
Its Executive Director
A-1
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this
day of ., 1995 by Edward J. Erickson,
President, and Daniel J. Donahue, Executive Director, of the
Economic Deve]opment in and for the City of New Hope, Minnesota,
Notary Public
This Instrument Was Drafted By:
CORRICK & SONDRALL, P,A.
8525 Edinbrook Crossing, Suite 203
Brooklyn Park, MN 55443 ..
A-2
EXHIBIT B
COVENANTS AND RESTRICTIONS
1. The Property shall not be exempt from real estate taxes
notwithstanding the ownership or use of the Land.
2. The Property shall not be sold, transferred, conveyed or leased
to any of the following parties:
(a) An institution of purely public charity;
(b) A church or ancillary tax exempt housing;
(c) A public hospital;
(a) A public school district;
(e) An organization exempt from federal income taxes pursuant
to Section 501(c)(3) of the Internal Revenue Code .pf
1986, as amended; or
(f) A Minnesota cooperative association organized under
Minnesota Statutes, Section 308.05 and 308.18 for the
purpose of complying with the provisions of Minnesota
Statutes, Section 273.133,.subdivision 3, or any other
party that would cause the Property to be valued and
assessed for real estate tax purposes at a lower
percentage of its market value than the Property is then
being valued and assessed for real estate tax purposes or
would result in the Property becoming.exempt from real
estate taxes.
3. The land shall not be used for any of the following purposes:
(a) The operation of a public charity;
(b) A church or house of worship;
(c) The operation of a public hospital;
(d) The operation of a public schoolhouse, academy, college,
university, or seminary of learning; or
B-1
(e) Any other use which would cause the Property t'° be valued
and assessed for real estate tax. purposes at a lower
percentage of its market value than the Property is then
being valued and assessed for real estate tax purposes or
would result in the Property becoming exempt from real
estate taxes.
4. The covenants and restrictions herein contained shall run with
the title to the Property and shall be binding upon all present and
future owners and occupants of the Property; provided, however,
that the covenants and restrictions herein contained shall inure
only to the benefit of the Economic Development Authority in and
for the City of New Hope, Minnesota ("EDA"), and may be released or
waived in whole or in part at any time, and from time to time, by
the sole act of the EDA, and variances may be granted to the
covenants and restrictions herein contained by the sole act of the
EDA. These covenants and restrictions shall be enforceable only by
the EDA, and only the EDA shall have the right to sue for and
obtain an injunction, prohibitive or mandatory, to prevent the
breach of the covenants and restrictions herein contained, or to
enforce the performance or observance thereof.
5. The covenants and restrictions herein contained shell remain in
effect until December 31, 2025 and thereafter shall be null and
void.
B-2
c: \wl351 \chh\g111. ra
'~~[~~~~~ REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
-9-95 Sarah Bellefuil Item No.
By:Administrative Analyst By: 6
RESOLUTION APPROVING PLANS ANDS/lgECIFICATION AND ORDERING ADVERTISEMENT
FOR BIDS FOR CONSTRUCTION OF A HANDICAPPED ACCESSIBLE TWIN HOME AT 6073-
6081 LOUISIANA AVENUE NORTH (IMPROVEMENT PROJECT #519)
At the September llth EDA meeting, the EDA approved a resolution authorizing the execution of a
Letter of Agreement with Equal Access Homes to provide design services/prepare plans and
specifications for the construction of a handicap accessible twin home at 6073-6081 Louisiana Avefiue
North (Improvement Project #519).
Final plans and specifications have now been prepared and the enclosed resolution approves the plans
and specifications and authorizes the advertisement for bids. Pending further input from the EDA on
design changes, it is anticipated that bids would be opened on Friday, November 3, and considere~l by
the EDA on November 13th with construction to begin immediately.
In 1993/1994, the City of New Hope purchased, rehabilitated and sold the property at 7109 62nd
Avenue North. As part of that project, the City split off the rear 100 feet of the property due to the
depth of the lot. At the same time, the owners of the corner lot located at 7105 62nd Avenue North
decided to subdivide their property and sold the rear 100 feet to the City. The City combined both
properties to create a new parcel as part of the City's Scattered Site Housing Program.
The project is being sponsored by the City in conjunction with the 5-City CO-OP Northwest Community
Housing Revitalization Corporation and the Metropolitan Council. It is being funded, in part, with
Federal HOME program funds, and a $120,000 zero interest loan from the Metropolitan Council. The
CRC will provide second mortgages so that the twin home will provide affordable housing to persons
with special needs. The City will oversee the construction and upon completion the homes will be sold
to qualified buyers.
TO:
! -
Review: Admimstratlon: ¥inance:
RFA-O01 ~
Request for Action 2 10-9,-95
A reduced set of plans and specs for the twin home is attached to this request. Once completed, the
twin home will be accessed off of Louisiana Avenue, it will be slab on grade construction, and will be
one story. Each unit will include three bedrooms, two bathrooms, a living room, dining room, kitchen,
utility room, and oversized two car garage. All of the accessibility features present in the twin home
located at 51st and Winnetka will be present in the twin home. The estimated cost of construction is
$201,500 and does not include landscaping or bringing sewer and water to the site. The sewer and
water work and the landscaping will be sent out as separate bids. Tom Schuster, the City Forester, will
design a landscaping plan for the site which will be presented to the EDA at a later date. The site will
be landscaped once construction is complete.
The platting/subdivision of the parcel is currently in process with the preliminary plat being presented
to the Planning Commission on November 7 and to the Council on November 13. The final plat should
be ready for Council approval on November 27.
The site will also be rezoned from R-1 Single Family Residential District to R-2 Single and Two Family
Residential District. The site is located in an R-1 district and is directly adjacent to R4 High Density
Residential District; The request for rezoning will be brought before the Planning Commission on
November 7th and before the City Council on November 13, 1995.
Staff recommends approval of the resolution approving the plans and specifications and authorizing
advertisement for bids.
CORRICK & SONDRALL. P.A.
STEVEH A. SONDRALL ATTOI~NEY$ AT LAW
MICHAEL R. LAFLEUR Edinburgh Executive Office Plaza
WILLIAM C. STRAIT 8525 Edinbrook Crossing
Suite ~203
Brookl~ Para, Minneso~ 55443
TE~PHONE (612) 4~5~1
FAX (612) 42~S867
October 3, 1995
Daniel' J. Donahue
Executive Director
New Hope EDA
4401Xylon Avenue North
New Hope, Minnesota 55428
RE: Twinhome at 6073 Louisiana Avenue
Improvement Project No. 519
Our File No.: 99.15045 -'
Dear Dan:
The handicap accessible twinhome project is at the stage of
approval of plans and specs and advertisement for bids. The EDA
will be presented with the plans and specifications at its next
meeting. The plans and specifications include the proposed
construction contract with the builder, which is almost identical
to the contract used for the twinhome project at 7901-7909 51st
Avenue. If the EDA decides to move ahead with the project, the
enclosed Resolution Approving Plans and Specifications and Ordering
Advertisement for Bids can be considered at the meeting.
Be sure to call me if you have any comments or questions.
Si ncerel y,
Martin P. Malecha
Enclosures
m3t
cc: Kirk McDonald, Management Assr. (w/eric)
Valerie Leone, City Clerk (w/enc)
Sarah Bellefuil, Administrative Asst. (w/eric)
Steven A. Sondrall, Esq.
EDA RESOLUTION NO. 95-
RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ORDERING
ADVERTISEMENT FOR BIDS FOR
CONSTRUCTION OF HAND[CAP ACCESSIBLE
TWINHOME AT 6073 LOUISIANA AVENUE NORTH
IMPROVEMENT NO. 519
WHEREAS, the Economic Development Authority in and for the
City of New Hope (EDA) owns certain real estate known as 6073
Louisiana Avenue North, and
WHEREAS, in order to further the economic development of the
City of New Hope (City), the EDA will construct a handicap
accessible twinhome on said real estate, to be known as City
Improvement No. 519, and
WHEREAS, plans and specifications for said Improvement 519
have been prepared and presented to the EDA for approval. ..
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of New Hope as follows:
1. Plans and specifications of proposed Handicap Accessible
Twinhome at 8073 Louisiana Avenue North, Improvement No. 519 of the
City, a copy of which plans and specifications are attached hereto,
are hereby approved, and a copy thereof shall be placed on file in
the office of the City Clerk.
2. The City Clerk is hereby authorized and directed to
advertise for bids in the New Hope-Golden Valley Sun-Post, the
official newspaper of the City, and in The Construction Bulletin
for the construction of said improvement using said approved plans
and specifications. The advertisement shall be published for 10
days, shall specify the work to be done, shall state that bids will
be opened at 11:00 a.m. on November 3, 1995, in the Council
Chambers of the City Hall and will be considered by the EDA at 7:00
p.m. on November 13, 1995, in the Council Chambers of the City
Hall. Any bidder whose responsibility is questioned during
consideration of the bid will be given an opportunity to address
the EDA on the issue of responsibility;y. No bids will be
considered unless sealed and filed with the City Clerk and
accompanied by a cash deposit, cashier's check, bed bond or
certified check payable to the New Hope EDA for five (5) percent of
the amount of such bid..
Cit./ of New Hope t, hls 9t, h day oF Oct. obef, 1995,
President
Attest-
Executive Director
BUILDING CONSTRUCTION CONTRACT
FOR 6073 LOUISIANA AVENUE NORTH
LICENSE NO:
By this agreement dated the day of , 1995,
, a , and licensed
building contractor, Minnesota ID No. (hereinafter
"Builder") and the Economic Development Authority in and for the
City of New Hope (hereinafter "Owner") and covenant and agree as
follows:
1. Real Estate.
a. Builder shall furnish all labor and materials for
the construction of a handicap accessible twin home residence
(the "Dwelling") in accordance with plans and specificationg'
attached hereto as Exhibit A (the "Plans") and all other
documents attached hereto as exhibits to this contract.
b. The Dwelling shall be constructed on the following
real property (the "Property") in Hennepin County, Minnesota,'
legally described as:
Lot 2, Block 1, Cameron 2nd Addition,
according to the duly recorded plat thereof. This Property
will be replatted as Lots 1 and 2, Block 1,
Addition, Hennepin County, Minnesota.
c. Owner hereby represent to Builder that it is fee
owner of the Property.
2. Completion Date.
Builder shall begin construction of the Dwelling no later than
fifteen (15) days after Notice to Proceed from Owner, and shall
continue to work with all reasonable diligence to final completion.
Except as otherwise provided in this Agreement, Builder shall
complete construction of the Dwelling on or before a date sixteen
weeks after Builder receives the Notice to Proceed (the "Completion
Date"). The Notice to Proceed shall be issued in writing to
Builder by Owner after all contract documents, bonds and insurance
have been provided or executed, and after Owner has signed Purchase
Agreements with buyers for each of the residential units in the
Dwelling.
1
3. Contract Price.
In consideration of Builder supplying all labor, material and
services required by this contract, Owner agrees to pay the Builder
the sum of
($ __) (the "Contract Price") to be paid as set forth in
the Payment provisions below.
4. Builder Responsibilities.
Builder shall furnish all labor, material, equipment, utilities and
any other items necessary to complete the Dwelling in accordance
with the Plans (the "Work") and such materials shall be new, of
good quality and shall be of the grades specified in the Plans and
where a grade is not specified, materials must be of a quality
comparable to those grades and materials which are specified in the
Plans. Zn the event of any shortages or discontinuations of
products or materials specified in the material description list,
Builder must obtain written permission from Owner or Owner's agent
to substitute materials or products of equal or greater value. All
labor and work performed by Builder shall be performed in a good
and workmanlike manner, in compliance with all applicable Federal,.
state and local laws, rules, regulations and codes, and to Owner's"
satisfaction.
5. Utilities.
Builder shall be solely responsible for verifying the exact
location of all utilities, and prior to any construction shall
notify all utility companies having utilities in the project area.
Builder shall have sole responsibility for providing temporary
support and for protecting and maintaining all existing utilities
in the project area during the entire period of construction.
6. Safety and Convenience of Private and Public Property.
The.Builder shall not enter upon private property for any purpose
without obtainin9 written permission from the Owner thereof. The
Builder shall not damage any trees or other property along the
street and/or public right-of-way. The Builder shall give all
notices and comply with all laws, ordinances, rules and regulations
applicable to performance under this Contract. The Builder shall
provide adequate signs and barricades, and will take all necessary
precautions for the protection of the Work and the safety of the
public.
7. Permits and Licenses.
The Builder shall obtain and pay for all permits and licenses, and
give all notices, pay all fees, and shall comply with all laws,
ordinances, rules and regulations bearing on the Work. Builder
shall also pay all public utility charges, 9overnment charges and
2
inspection fees. Notwithstand'in~ the for-egoing, a~ bui~d~r~g
pecmit fees charged by the City o~ Ne~ Hope, as ~e~] as sewage
connection charges and water connection charges, sha~l be ~aived
for the Work. This waiver does not apply to state surcharges,
electrical permit fees, or any other costs and fees, but only
applies to building permit fees charged by the City of New Hope,
and sewage and water connection charges. If Builder performs any
of the Work contrary to such laws, ordinances, rules and
regulations, the Builder shall bear all costs arising therefrom.
8. Bonds.
Builder shall provide a performance bond and a material and labor
payment bond, each bond in an amount equal to the contract amount
as security for the complete performance and payment of all
Builder's obligations under this contract, and issued by a surety
licensed to do business in Minnesota. The performance bond and
material and labor payment bond shall be in a form acceptable to
the New Hope City Attorney. Builder shall pay all labor and
material suppliers when payment is due and before any claims are
filed for the same against any payment bond required by this
Contract.. ..
9. Change Orders.
If a change in plans and specifications is requested by Owner and
will result in Builder furnishing additional labor or materials,
Owner and Builder shall reach an agreement in writing specifying
the additional labor and/or materials, and also specifying the
agreed upon price for such change. If notice of a change in the
contrac~ price is required to be given to a surety by the
provisions of any bond, it will be Builder's responsibility to
notify the surety and provide proof of any adjustment in the bond
amount to the Owner.
Owner reserves the right to delete one or more items of the Work as
itemized in the specifications attached as Exhibit A. These
deletions shall be done by written change orders, and the contract
price shall be adjusted downward by the deleted itemized amount.
Owner's right to delete such item or items shall be limited to
those items of the Work not yet installed or completed.
10. Insurance.
Before beginning actual work under this contract, the Builder shall
submit to the Owner and obtain the Owner's approval of a
Certificate of Insurance on standard form C.I.C.C.-701 or Accord 25
forms showing %he following insurance coverage and listing the
Owner as a loss payee under the policies:
3
i_iabi1-Jt,./ - $500,000
B. Automobile Liability for All
Vehicles - $500,000
C. Workman's Compensation - Statutory Amounts
D. Excess Liability Umbrella - $1,000,000
E. Builder's Risk on a Multiple
Peril Form - Full Contract Amount
The certificate must provide for the above coverage to be in effect
from the date of the contract until at least 30 days after the
Completion Date, and must provide the insurance coverage will not
be canceled by the insurance company without at least 30 days
written notice to the Owner of intent to cancel. Any deductible
clause shall not exceed $1,000.00.
11. Warranties.
The Builder warrants and guarantees to Owner that all Work,"
including materials and equipment, will be in accordance with the
contract documents and will not be faulty or defective. All
defective work, whether or not in place, may be rejected by Owner,
and any such rejected work shall be corrected by Builder at its own
cost and expense. If any work is found to be defective within two
years after the date of final acceptance of the project by Owner,
Builder shall promptly correct such defective work at Builder's
sole cost and expense.
The Builder will also transfer to the Owner or any Purchasers from
Owner any warranties upon materials and equipment used in the
construction under this contract which are given by the
manufacturer.
The above warranties shall be in addition to all warranties
provided by law and not in limitation thereof. The Owner and its
successors and assigns shall also have the. benefit of all statutory
warranties in respect to residential construction contracts
provided by Minnesota Statutes §327A.01, et. seq., in addition to
any and all other warranties or guarantees expressly or impliedly
included in this Contract or available at law or in equity, all of
which shall be cumulative.
12. Warranty of Title.
The Builder warrants and guarantees that title to all work,
material and equipment provided under this contract shall pass to
Owner free and clear of all liens, claims, security interests and
encumbrances.
13. Inspections.
The Owner and its representatives shall have the rigi~t to inspect
the construction at all times. Any defective work or materials
revealed by such inspections shall be repaired or replaced by
Builder within a reasonable time after notice of said defect, and
at no cost to Owner. Upon notice from Builder that the
construction is complete, Owner and its representatives shall make
a final inspection of the construction and notify the Builder in
writing of any ways in which this inspection reveals that the work
or materials are defective. Builder shall, as soon as possible,
make such corrections as are necessary to remedy such defects.
14. Payment.
Builder shall be paid for the completion of the Work as set forth
below:
a. Builder shall apply to Owner for an Advance, with
each Advance to cover work completed since any previous
Advance. Builder shall apply for an Advance no more often
than once every four weeks, with the first application for an
Advance to be no sooner than four weeks after the Notice t~'
Proceed. The fourth and final Advance shall be paid at the
final completion of the Work and only after Certificates of
Occupancy for each residential unit in the Dwelling have been
issued.
b. Each Advance request'shall be in writing in the form
attached hereto as Exhibit B and set forth the specific Work
performed and/or materials supplied, be signed by the Builder,
City of New Hope Building Official, and any other inspector or
agent specified by Owner and include lien waivers for all
labor and materials involved in the request.
c. Owner shall pay 95% of each Advance within 15
business days of receipt from Builder if the following
conditions are met: 1) all inspections by the Building
Official and any other agent of Owner are to Owner's
satisfaction; 2) the Advance request is complete
including lien waivers and any other documentation
reasonably required by Owner; 3) the Contract Price less
the current and any previous Advances will be sufficient
to complete the remaining Work; 4) Builder is not in
breach of any of its duties or obligations under the
Contract. The 5% of each Advance request not paid by
Owner shall be retained until final payment upon
completion of the Work.
15. Indemnification.
To the fullest extent permitted by law, the Builder shall indemnify
5
a,,~ _ ~ a ~ ag~n._.s end emp~o/.ees, , Tom apd ~ga~:~s5
a11 c~aims, damaaes,_ tosses, and expenses, including but not ~mi~.eu~
to attorney's ¢ees, arising out of or resulting from the
performance of the work, provided that any such claim, damage, loss
or expense (1) is attributable to bodily injury, sickness, disease
or death, or to injury or to destruction of tangible property
(other than the work itself) including the loss of use resulting
therefrom, and (2) is caused in whole or in part by any negligent
or intentional act or omission of the Builder, any subcontractor,
anyone directly or indirectly employed by any of them, or anyone
for whose acts any o¢ them may be liable, regardless of whether or
not it is caused in part by a party indemnified hereunder.
16. Zndemnification Against Nechanic's Liens.
Builder shall indemnify and hold harmless Owner, its agents,
employees and assigns, from and against all claims, damages,
losses, expenses and delays, including but not limited to
attorney's fees, arising out of or resulting from the filing of an
a mechanic's lien against the Property by any person or entity
supplying labor or materials for the completion o¢ the ~ork
contemplated by this Contract.
17. Subcontracts.
Nothing in this contract shall create any legal relationship
between Owner and any subcontractor, and no subcontractor shall
have any rights under this contract with the Builder. At the time
this contract is signed, Builder shall submit in writing to Owner
the names of subcontractors proposed for the work. Builder shall
not employ any subcontractor to whom Owner may reasonably object.
Any subcontractor reasonably obaected to shall be replaced with an
acceptable subcontractor at no change in the contract price.
Contractor shall be fully responsible for all acts and omissions o¢
the subcontractors and any persons or organizations directly or
indirectly employed by them and persons or organizations for whose
acts any o¢ them may be liable to the same extent that contractor
is responsible for the acts or omissions of persons directly
employed by contractor.
18. Ass~Bnment,
Builder shall not assign or transfer, whether by an assignment or
novation or otherwise, any of its rights, duties, benefits,
obligations, liabilities or responsibilities under this contract
without prior written consent by the Owner.
19. Owner Hay Terminate.
Upon the occurrence of any one or more of the following events:
A. Builder's adjudged bankrupt or insolvent;
6
credi ~ors;
C. A trustee or receiver is appointed for Builder or for any
of Builder's property;
D. Bui!der files a petition ~o take advantage of any
debtor's act, or to reorganize under the bankruptcy or
similar law;
E. Builder repeatedly fails to supply sufficient skilled
workmen or suitable materials or equipment;
F. Builder disregards laws, ordinances, rules, regulations
or orders of any public body having jurisdiction;
G. Builder otherwise violates in any substantial way any
provision of the contract;
Owner may after giving Builder and his surety seven (7) days
written notice, terminate the services of Builder, exclude Builder
from the site and take possession of the work and all of Builder's
tools, appliances, construction equipment and machinery at the site
and use the same to the full extent they could be used by Builder
(without liability to Builder for trespass or conversion),
incorporate in the work all materials and equipment stored at the
site, and finish the work as Owner may deem expedient. In such'
case, Builder shall not be entitled to receive any further payment
until the work is finished. Zf the unpaid balance of the contract
price exceeds the direct and indirect cost of completing the work,
including compensation for additional professional services, such
excess shall be paid to Builder. If such costs exceed such unpaid
balance, Builder shall pay the difference to Owner. Zn finishing
the work, Owner shall not be required to obtain the lowest figure
for the work performed.
20. Limitation of Liability.
In no event, either as a result of breach of contract, negligence
or otherwise shall Owner or its agents or employees be liable for
damages or lost profits, loss of use, loss of revenue, loss of
bonding capacity, or any other special, indirect or consequential
damages of any kind. To the extent this contract allows any
liability to be imposed, the total liability of Owner for any loss,
claim or damage arising out of this contract or the performance or
breach thereof, shall be limited to the value of the work
performed.
21. Non Discrimination.
For the work under this contract, Builder agrees that in the hiring
7
k. hls ,sontract or-any subcontract iser'eunder, the Builder, material
suppliers or vendors shall ~ot, by reason of race, creed, color or
national origin, discriminate against the person or persons who are
qualified and available to perform the work to which such
employment relates; and the Builder, material suppliers or vendors
shall not, in any manner, discriminate against or intimidate or
prevent the employment of any person or persons, or on being hired,
prevent or conspire to prevent any person or persons from the
performance of the work under this contract on account of race,
creed, color or national origin.
22. Contract Documents and Oral Agreements.
This contract shall consist of this document and all attached
exhibits and shall comprise the entire agreement between Owner and
Builder concerning the work. This contract may be altered only by
a writing signed by both Builder and Owner.
23. Noti ce.
The address and telephone number of Builder for the purpose of
giving notices and any other purpose under this contract shall be:"
The address and telephone number of Owner for the purpose of giving
notices and any other purpose under this contract shall be:
New Hope EDA
Attn: Daniel J. Donahue, Executive Director
4401Xylon Avenue North
New Hope, MN 55428
(612) 531-5100
Corrick & Sondrall, P.A.
ATTN: Steven A. Sondrall, New Hope City Attorney
8525 Edinbrook Crossing, Suite 203
Brooklyn Park, MN 55443
(612) 425-5671
8
ZN WITNESS WHEREOF, the parties to this contrac% have hereunbo
set their hands and seals as o¢ the day and year first above
written.
ECONOMIC DEVELOPMENT AUTHORITY ZN
AND FOR THE CITY OF NEW HOPE,
OWNER
By
Its President
By
Its Executive Director
By
Its
STATE OF HINNESOTA )
) SS.
COUNTY OF HENNEPIN )
The foregoing was acknowledged before me this day of
, 1995, by Edw. J. Erickson and Daniel J.
Donahue, the President and Executive Director, respectively, of the
Economic Development Authority in and for the City of New Hope, a
Hinnesota municipal corporation, on behalf of said municipal
corporation.
Notary Public
9
) SS,
COUNTY OF )
The foregoing was aoKnowledged before me this day of
, 1995, by , the
of , a
, on behalf of said
Notary Public
c:\wp51\cnh\con~ract.
10
CITY OF NEW HOPE
SPECIFICATIONS FOR I-L-~NDICAPPED ACCESSIBLE TV~N HOME
AT 6073 & 6081 LOUISIAN'A AVENqJE NORTH
,NEW HOPE, MLNNESOTA
The City of New Hope is seeking quotes on the following work to be done in constructing a handicapped accessible
twin home - each unit to be 1599 square feet. The following specs are for each unit:
BASE BID
A. Sidino
l. Aluminum with aluminum soffits & fascia. Include exterior wall Tyvek
B. Brick
1. Per Plan, $365.00/1000, Material Allowance.
2. Flashing at top of brick
C. Garage Door
1. 16' x 7'6" Steel paneled door w/low headroom kit.
D. Garage Door Opener
1. I/2 HP with 2 controls
E. Insulation ~
1. R 45 Attic blown
2. R 19 Insulation batts in walls
3. 6 mil Poly exterior walls & ceiling
4. Party wall w/R11 Insulation
5. Foundation - RI0 2" M-density styrofoam insulation 42" deep - vertical inside wall block -'
6. Sound channel located on the living quarters side of zero-lot-line party wall
F. Finish Caruentrv 1. Install all door hardware and locks
2. 2 Pocket doors
3. Set cabinets, per plan (may require slight variation due to homeowner specifications)
4. Cap opening on 42" high wall between dining room & living room w/oak board
5. Base and shoe in all vinyl & ceramic areas
6. Drill cabinets for hardware & mount hardware
7. Mount address numbers - Black 4" size
8. Install Minnesota Disability Code grab-bars in bathroom
Rooflm~
1. Standard 3-tab 240 pound asphalt shingles
H. Gutters
1. Front entry sidewalk area - along 24' garage & 5' return to outside at valley. Leader
& downspout placed at low point discharging onto grass area.
I. Floorin~ 1. Carpeted areas: bedrooms 1, 2 & 3, hall & living room
2. Vinyl areas: utility/laundry room, storage, foyer, kitchen & main bath
3. Ceramic tile area: master bath
EXHIBIT A
Flooring continued
Carpet Specs: Horizons Industries Commercial Carpet "Perfect Spec" #4195, 30 ounce
w;synthetic hair and jute pad/or equal. Provide specs on substitutes.
Vinyl Specs: Armstrong "Fundamental Solarian" over cement slab.
Ceramic Tile (floor) Specs: American Olean, Porcelain ceramic Mosaics unglazed floor tile
with 2x2 abrasive gram - slip resistant surface or equal. Provide specs on substitutes.
J. Closet Shelving
1. Include a full width shelf in all clothes/coat closets at height to be specified by the
homeowner. In addition the master bedroom closet will have a second shelf 1/2 the length of the full
width shelf.
2. The storage area will have 4 - 24"-deep shelves stacked per plan.
K. Ceramic
1. Bath floor w/2x2 abrasive American Olean
2. Roll in shower floor - 2x2 abrasive American Olean
3. Shower walls to six feet high w/standard $2.30/sq. ft. wall tile materials allowance
4. Include a four-piece ceramic fixture set (toilet paper dispenser, 2 towel bars & 1 soap dish) to be
installed in each bath.
5. Include a ceramic tub surround at the main bath tub with standard $2.30 per sq. foot materials
allowance.
L. Mirror
1. Both bathrooms - full width of vanity top & 40" above floor.
M. Counter Tops
1. Bathroom - Cultured marble top with custom bowl locations & low profile, 1" high
splashes to allow mirror to be installed at a lower height.
2. Kitchen - Laminate with self edge.
N. Curtain Rod
1. Standard tension rod
O. Heatin~
1. 80% Efficient furnace, Lennox
2. Honeywell chronotherm thermostat
3. Bath & laundry exhaust vents insulated & ducted to exterior of building
3. Vent dryer
4. Provide gas supply & hook up for one applicance
5. I0 Seer Lennox A.C. (located near bedroom #2)
6. Transite heat system per plan
P. Plumbing
I. All white fixtures with chrome components
2. One ~loor drain in the utilitv room
3. Kitchen sink - stainless steel, 2 compartments
4. Bath tub - Kohler Villager (white.)
5. Disposal - Badger I SS Disposal
6. Rough in for future lawn sprinkler hook-up (at the bedroom #2 closet location)
7. One frost-proof anti-siphon exterior hose bib located 18" above grade between dining & living room
8. Insulate water & waste pipes at the laundry tub, kitchen sink, and roll-under master bath vanity
9. Dishwasher & washing machine hook-up
10. Kohler #3421 stools in both baths with standard seat covers
11. 40-gallon Bradford white hot water heater
12. Locate water shut offs for exterior hose bib behind access cover in dinette
13. Include shut offs at all fixtures
14. Include a wall hung laundry tub and draw box drain
15. Plumber to hook up after one inch ball valve on the water service
16. Moen Faucets in all locations
-- Laundry faucet #4901
-- KitChen faucet/17210
-- Main bath vanity faucet #4621
-- Main bath tub shower faucet #2353
-- Master bath shower valve #L2351
-- Master bath vanity faucet #4621
-- Roll-in shower - hand held spray - Alson spray handle on a 69' hose connected to a 48" Glide liar
17. Sewer and Water Connections
-- Locate sewer & water lines in the utility room '
-- Water service connection to include a 1' ball valve approx. 24' off the floor
Q. Electrical
1. 150 AMP, Ivory rocker devices, wire one appliance, 3 phone jacks, 4 cabinet outlets,
4 cab. switches, air conditioner wiring, 110 CFM bath fans, dishwasher & disposal wiring
2. Locate service box in the garage with the main breaker a maximum of 48' off the floor
3. One garage door opener outlet, wire the garage fire door for a future auto door opener,
not noted on the plan
4. Furnace wiring ,
5. Rough in wiring for future security system. Include 3 doors pre-wired with contacts, 1 siren, 2
motion, 1 heat sensor. Prewired 2 keypad locations.
6. NOTE: Electric meter locations may be different than breaker box location.
R o M~onrv
1. Slab on grade, foundation per plan, 10x12 patio & sidewalk to driveway per plan
(4" slab over 4" clean wash sand base)
S. Lumber
1. Anderson casements, sized per plan, w/nine tandem latches (flashing at windows per
manufacturers specifications)
2. Exterior doors
- front entry = six panel steel insulated, w/8' sidelight, w/self closing hinges &
double bored for deadbolt & lever
- fire door = six panel steel with self closer, double bored for deadbolt & lever
- 3° swing door with full view glass lite & self closing hinges, double bored for a
deadbolt
3. Interior doors
- flush oak w/Weiser lever handles, privacy latches on interior doors to 3 bedrooms
& baths
Lumber cont'd.
, ~.. Drywall
- walls taped & sanded, ready for paint
- sprayed ceilings - NOTE firewall detail for zero-lot-line code requirements · '
- garage walls/ceiling - completely rocked & fire taped one coat
5. Exterior Rail at Entry.
- 2x2 cedar pickets w/2x4 top & bottom rails between 4x4 cedar.posts
6. Millwork
- 5/8" Princeton oak casing
- 1/2" Princeton oak base
- Oak base shoe in all vinyl & ceramic tile areas
- Provide white malomine shelving for linens
T. Cabinetry
1. Oak cabinets with custom countenop, heights per Homeowner specifications
2. Flat panel door style with picture fram profile (Kn. app #207)
3. Cabinet pulls
4. 4 Roll out shelves
5. 1 Pair lazy susans
6. 1 Regular size stack of drawers in the kitchen
7. 2 Bread boards
8. Single wall hung laundry tub (no base cabinet)
9. Clad interior
I0. 30" Upper cabinets, per plan ..
11. Provide 4' wide cabinet stiles in 4 locations for electric switches & outlets
12. Master bath vanity to have a 36' wide clear opening
13. Vanity height to be called out by the homeowner
14. Master vanity to include a stack of drawers also
U. Carpentry
1. Install cedar railing at front entry
2. Wrap overhead garage door openings & all windows with 2 x 6' cedar, to be stained
3. Set garage gable louver - Ventilating type
4. Plywood walls in the bath shower area for grab bar installation
5. Supply backing for grab bar at stool areas
6. Supply backing for grab bar at tub area
7. Install "ice and water" barrier over all heated portions of building at roof edge per code
8. Shim windows, per manufacturers specs
9. Install sill seal under all window sills
10. Install sill seal under all bottom plates on perimeter doors
11. Install weatherguard protection at sidewalks, patio & entrys per plan
12. Install roof & soffit vents per code requirements ..
V. Paintin~/stainin~ 1. Stained, sealed & varnished woodwork
2. Primered & painted walls
3. Paint garage door
4. Exterior staining, cllaiar trim around garage doors, garage windows, entry area rail system
W. Driveway
1. Asphalt, 40' wide to the street, new curb cuts to City specs
X. Sewer & Water
i. City will assume responsibility for constructing new sewer/water lines from the street to the pro¢er?.?
line. I see attached drawing) The builder wdi be responsible for connecting sewer and ~tater r'rom
stubs at property line to the twin home.
2. The builder shall coordinate each connection with Guy Johnson at New Hope Public Works
(533-4823).
Y. Gas & Electrical
1. Gas service will be underground to each unit
2. Electrical service will be overhead from pole
Z. Excavation 1. Include trucking and materials cost for fill required to achieve finished garage slab elevation of 872.5.
See attached survey showing existing curb heights and random elevations.
2, Remove tree stumps.
AA. Permi .ts.
1. All City permit fees, WAC and SAC charges will be paid by the City and should not be included in
the bid. Contractor shall pay for and include in bid all other fees, charges and ~urcharges, includin~
electrical permit fees.
BB. Trash Removal
I. Provide dumpster
oo
CC. Include $2,500 appliance allowance per unit in bid $5,000
DD. Include $850 lighting allowance pet unit in the bid $1,700
EE. Prof~aionall~ Cleaned
TOTAL $
NOTE: Landscaping and sodding will be completed by the City and should not be included in the bid.
The following are a list of options that may be requested by the purchasers of the twin home. These options should
no~t be included in the total bid amount listed on the previous page. If any of these options are requested, tt '~il
be the buyers responsibility to pay for them.
OPTIONS:
1. Whirlpool = $
2. Completed Security System -- $
3. Retractable doors at the kitchen sink cabinet = $.
4. Fireplace (gas) -- $.
5. Fold down laundry table $
6. Complete lawn sprinker system $
7. Fold down shower seat $
8. Gerber handicap accessible stool $
9. Non-slip vinyl vs. Armstrong "Fundamentals~ $ .-
Name of Company'
Contact Person
Address
Telephone Number
Signature of individual submitting quote
PLEASE RETURN QUOTES BY 11:00 A~M. FRIDAY, NOVEMBER 3, 1995, TO:
Sarah Bellefufl
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
The quotes will be comidered by the New Hope City Council at the Mund~y, November 13, 1995 Council meeti~, g.
All work is to be completed by April, 1996.
The lowest responsible bidder will be expected to enter into a contr~t with the City to ensure the completion of
the work in a timely m.nner. Payment will be m~le by the City upon ~cc~ of the quality ~md completion of
all the work.
~"l'""-":~d~' I i:'. ,~.o: ;t ...' ,~¢ I~,
\1 '~ '~ I I ~' ' ' sidewalk ~ I/1 ~ II ~ '.
~1~ .... ~ [ ) ;i ~ (alternate) ~ i I ~ ii ~ L
ew sidewa I
[i~ ~ _ J~l/~1~ .
,
- - --I~. ~7--
I !.
~t~l~ty Plan
6073-6081 Louisiana Av~nu~ ~orth
Scale: 1" ~ 30~
ADVANCE REQUEST
Payment request to Owner in the amount of $
Request No. Dated-
BUILDER REQUEST FOR PAYMENT
TO: Economic Development Authority in and
for the City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
As Builder under the Building Construction Contract for 6073
Louisiana Avenue North between
("Builder"), and the Economic Development Authority in and for the
City of New Hope, Minnesota ("Owner"), dated ,
1995 (the "Contract").
Alt terms not defined herein shall have the meanings set forth
in the Contract (as hereinafter defined), if any.
1. Builder hereby requests payment from Owner pursuant to
the Contract and hereby states and certifies that:
a. The names of the persons, firms, or corporations to whom
the payments requested hereby are due, the amounts to be
paid, and the general classification and description of
the costs for which each obligation requested to be paid
hereby are attached hereto. The work for which payment
is requested has been completed by the Builder. If
payment is requested for materials, the materials have
been delivered to and installed at the Property.
b. Such costs are presently due to the persons to whom
payment is requested. No part of such costs was included
in any other request previously filed with Owner.
2. Builder hereby certifies that all costs for which payment
is requested have been incurred by the Builder and have been paid
by the Builder. Attached are lien waivers for all such costs.
EXHIBIT B
Dated-
By'
Its
APPROVED BY:
Date-
C i t y o f N e w H o p e
Building Official
Date:
Project Designer
¢:\ ~]5 ! \ cn h\ 607. exb
6073 Louisiana Avenue North .. Three Bedroom Handicap Accessible Twin Home
The following estimated amounts are for both units combined -- August 24, 1995
Expenditures Anticipated Actual
Acquisition/Site preparation $ 17,000.00 $16,739.00
Construction (($65 x 1550 sq. ft.) x 2) $ 201,500.00
Other Construction Costs (SAC, WAC) $ 1,700.00
Sewer & water connection/site prep $' 20,000.00
Closing costs $ 3,000.00
Landscapin~t $ 5,000.00
Appraisal fees $ 1,000.00
Misc. (Utilities, taxes, site upkeep) $ 1,000.00
CRC Development fee (HOME funds) $ 3,000.00 $ 3,000.00
Marketing/Sales: Thompson (HOME funds) $ 1,000.00 $ 1,000.00
TOTAL $ 254,200.00 $ 20,739.00
Revenues
Proceeds from sale of twin home $160,000.00 ($80,000 per unit 1st mortgage) .'
HOME funds $ 30,000.00 (two $15,000 2nd mortgages)
HOME grant $ 10,000.00 (two $5,000 grants)
HOME soft costs (marketin~l and dev. fees) $ 4,000.00
EDA Housinc, I funds $ 32,000.00
CDBG Scattered Site funds $ 18,200.00
TOTAL $ 254,200.00
Homeowner Requirements
$80,000 first (at 6.85%) and $15,000 second (at 0%)
Cost per month (principle, int., taxes, insurance) $ 682.87 (May have $283/per month in debt)
Annual income required $ 28,260.00
Monthly income required $ 2,355.00
*Note: A salary of $25,500 (50% median for a family of 4) will allow a $72,000 - $74,000 mortgage at 6.85%
h:~housing~6073bud1 .xl$
Page 1
REQUF_~T FOR ACTION
originating Department Approved for Agenda Agenda Section
City Manager EDA
/ ~-9-95
Kirk McDonald Item No.
By: Management Assistant By: 7
/
DISCUSSION REGARDING ACQUISITION~OF MCBRADY PROPERTY AT 7621 BASS LAKE
ROAD
In January, 1995, Jerry McBrady, owner of the property located at 7621 Bass Lake Road, contacted the
City to inquire if the City had an interest in acquiring his property for potential future redevelopment
purposes. The property is a large 32,000 square foot parcel located at the end of the Bass Lake R6ad
Extension and is the key parcel related to any future redevelopment in the area. The City had the
property appraised by BCL Appraisals and the Fair Market Value was determined to be $78,000. The
City submitted a Purchase Agreement to McBrady's for this amount and the offer was rejected. The
property owners had their own appraisal completed, which indicated the Fair Market Value t9 be
$119,000. The McBrady's counter-offered with a $110,000 offer. The City had a review appraisal
completed which upheld the original value.
Staff recently met with the property owners to determine if there was a negotiated agreement that could
be reached. The property owner indicated that they felt the property had a value of more than $78,000
due to the large size of the parcel. They agreed to reduce their counter-offer to $90,000, per the
enclosed letter. Staff requests to discuss this counter-offer with the EDA.
If the City proceeds to acquire the property, it would be purchased on a scattered site housing program
basis and no relocation costs would be paid. The owners have vacated the property. The existing
dwelling would be demolished and the property would be left vacant. Funding for acquisition/
demolition would be with TIF and CDBG funds.
MOTION BY' SECOND BY
UU ' " l-
Review: Administration: Finance:
RFA-O01 ~
McBRADY PROPERTY TIMELINE OF EVENTS
(7621 Bass Lake Road)
January 1, 1995 McBrady sends letter to City inquiring about City interest
in property.
February 13, 1995 - Staff discusses redevelopment potential with Council.
May 3, 1995 - Neighborhood meeting conducted.
May 8, 1995 - City Council authorizes appraisal of property.
May 24, 1995 - Appraisal received with "Fair Market Value" of $78,000.
June 12, 1995 - Appraisal presented to EDA and EDA authorizes
negotiations.
June 28, 1995 - Staff meets with McBrady. McBrady requests.
consideration on larger than normal lot.
July 5, 1995 - City sends Purchase Agreement to McBrady for $78,000
after discussing "over-sized lot" issue with appraiser.
July 24, 1995 Relocation Consultant hired. Meet with McBradys.
August 1, 1995 Review Appraisal completed by Hennepin County
confirming value of $78,000.
August 4, 1995 McBrady has own appraisal completed, "Fair Market
Value" at $119,000.
August 7, 1995 - McBradys reject EDA's offer of $78,000 and counter-offer
at $110,000.
August 14, 1995 - EDA expresses concerns about project relocation costs.
August 24, 1995 - BCL Appraisals completes review of Holker appraisal
stating that $119,000 value is excessive.
August 28, 1995 - EDA repeals project.
October 4, 1995 - Staff meets with McBradys to negotiate on property;
McBradys reduced their counter offer to $90,000.
January 1, 1995
Mr. Dan Donahue
New Hope C~ty Manager
4401Xylon Ave. N.
New Hope, MN
Dear Mr. Donahue,
In the spring of 1994 I sent a letter to Doug Sandstad
regarding my property at 7621 Bass Lake Road in New Hope.
I expressed~- interest in possibly subdividing our rather
large lot. Another possibility I am considering right now
is selling the property altogether and was wondering if the "
city might be interested in purchasing my property. If you
would like to discuss this matter with me, please feel free
to contact me at 537-7912.
Sincerely,
cc: Doug Sandstad
· ' ' BCL Appraisals, Inc.
Bjorklund. Cam fei. Lachenmayer, Incorporated
May 24, 1995
City of New Hope
4401 Xylon Avenue North
New Hope, Mn 55428
Attention: Kirk McDonald
Attached is the appraisal completed on May 24, 1995 for the property at:
7621 Bass Lake Road
New Hope, Mn
Jerome and Karla McBrady
The estimate '~l~.b~Jg~,~' as of May 24, 1995 ia:
Seventy-Eisht 'l'noumnd Doilam $78,0~
No. .r~sporm~oih'ty has been &uumed for matter3 which are le~d in nature, nor has
any opimon on ~ been rendered other than a.~unins marketable title. Liens
as tnouftl tree o!
· In this appruiml ~, the existeuce of poMntially harardom ~ ~
m .con~'ucz~.'.. or mmnmm~ of the building, such as the presence of
urea-tormaldehyde foam insul~on, ~, and/or the existence of substances such
mrluon~ ma~ may. ~ly &f.f .e~ ~ value of. the gmper~, was not observed by me;
nor ~. i nave any lnowmlse or .me ~ ot mca materiah/submnces/influcnces
on or.m the pmim~y..The appruser, however, ia no~ qnalified to detect ~..ch
materials/~influence~. The exisMnce of urea-formaldehyde foam insulation,
or_?l~ ..ix~,nt~. y hazardous material, oF toxic wu2 or radon gas, may have
effect on the vetue of the properly. I urse the client to main
this fieM if desired.
Pleaae feel fmc to call if you have any questions.
We appreciate your businea8.
Sincerely,
BCL Appraiaah, Inc.
28S2AmbxtyLamS~tu~,l~mmapd~MimmmaSS41! (612)7S1-(MOS Faz:TSI.'IF2,6
.ro~.~w o..cr=tso. UNIFORM RESIDENTIAL APPRAISAL REPORT
P~pen~*dd~.s, 762~ ~ss ~ke R~d c,~ New Hope ~t.~. ~ :.~ ~.
Le~l ~scn~tion ~ A~ched Adden~ ::~n~Hennep ~n
B G~ mm ~j ~d Sl b ~ ~ 50 ~ 20 2-4 ~ ~ rfl pmco~
~m~c~mc~ffs~cs: NO~fh~Fh~ ~OS ~s~ o~ 6~nd Ave ~o ~he no~h, B~ne Ave
to the ~st. 4~h A~ N to the s~th. and cry Rd 81 tO the
Flctort ~t effect b m~oMhli~ of ~ )mN~o in ~ ~i~d (pmxi~ to employmM Ifld lenities, employment sMbiti~, ippelt to Meet. etc.;
~ (:mldlkM in IM NMed j~ml (im:Wdk~ MMMt lot Ihl ~ ~ mll~d ~ ~ t~d ot OmN~ vllNI, ~mnd/lupply,
- - s~ M MM M ~ p~el ~r ~ in ~ ~L ~lcflp~ of b pml~ of ulfl Ifld fl~ncing cOflCOiliOflL etc.): -
~ ~d ~d c~etoristics a~r tQ ~ in ~nct. Z did ~Ot o~e~o any ~
of h~ ~tly ~ the Mrkot. Noml Mrketinf tim Is ~ ~hr~ ~t~, Znterest
8~ at 7.St to 8.2~ wl~ ze~ tO thr~ ~ints ~/nf t~!~. ~$ t~ et Fi~no~nf are
· a St~X
v~,t~ s,¢t~ . UNIFORM RESIDENTIAL APPRAISAL REPORT
mEST;MATED SITE CALUE ' $ ~, 000 =ommen~. on Co~l ~rolcn
~e Ad~l Features 'On"I'S~-P'A '; .... 2,~00' :ne ~rs~i1 Swift 'Scsi Su~de
Tom( Esu~ted Cost ~ · s 106, ~20 some functional ~preciat ion ~e t o the
Lass Physm~l Fu~o~l ~m~l ~Z~e access o~ of ~ss ~ke R~d. This
C~A~8~ ~. 3
5857 Neva~ Ave
6 Bl~ks North
~ 98 ~ys-Cty c~
Mm Av~ Nehk~'hd IW~ Nehl~hd ~ A~ Nn~hd ; A~ NKhbrhd ;
~ .74 ~ 24 ~ : *~.000 .46 ~re : *2.500 .24 Acre ...+~,0(
~ ~ ~ 1, S Sto~ I. S Sto~ ~ 1. S Sto~ ; 1, S Sto~
~~ A~=e ~ve~e : St~eo : -2,000
~ ~ 31 ' 7~ ~ 1.si -~,oooT: 3~ l~ +l.ooo 6~ 37 i~ +2,o~
~a~ W/~ ~ W/O : +1,000 Fu~-~ W/O ~ +1,000 Full-No W/O : +1,0,
~~ ~n/St~l St~l , Unt{n{sh~ : +500 612 st F{n ~ -~,0
~~ AW~II ~ri~ ~ -2.000 ~rior [ -2.000 ~rior ~ -2,0
~~ ~e ~e ~ ~me ~ None ·
~ ~,~ ~r Att 2.S ~r Att ; 1.~ ~r ; +2.000~1 ~r
~~ Patt~3OzlO P~h -1,500 ~e : -500 ;~k
~.~ ~ ~ ~ ~e ~ ~ce ~ -1,0~
~ i~ no ~ ~ t~ ~,~!~ or ~!~ ~in~ ~!d ~ t~ ~t 12 ~t~ other
,~: ..... ~C~ f~k S8~.~OO ~!~ C---I~ ~l~is S78.000. lam ~rMch ~s not
~ m ~ ~ ~ ~ ~ ~K~ ~m~TO~_~
~~ ~y 24. 19~
~s~t ~400072T s~ ~ ~s~u~
~0~, C~, ~Y~, ~C.
BCL Appraisals, Inc. ·
Bjorklund, Carufel, Lachenmnyer, Incorporated
~i~ No. 95-0525-A
LEGAL DESCRIPTION:
Aud Subdivision No 226. Corn at a pt dis 235.2' south of a pt in the north line of Lot 39, dis
410' east from the NW corner thereof th south 167' th east 175' th north 200' th west 85' th
south 33' th west 90' to begimting.
NEXGHBORHOOD FACTORS THAT AFFECT MARKET~:
The subject is located in New Hope. This western subufo of Minneapolis is nearly fully
developed and represents the secondary growth ring of the metro area. The subject lies very
near the border of New Hope and Crystal. The neighborhood consists of a mixture of uses.
The prm~ry use is re~dera~, however, there are some ~enu, commercial and multi-
fan~l.' ~ homes in the neighborhcxxi. Employment is primarily blue collar with most rmidents
working in downtown Minneapolis or western suburbs. Subject is convenient to educational
and recr~tional fac~ities. C, ood freeway access is near. Downtown Minneapolis is a 20
minute drive.
SITE COMMENTS:
The subject has an unusual site location with access off of an easement, off of Bass Lak~ Road.
Aa indicated in the attached 1~.i~.. map, this private road provides acce~ to three homes that are
located somewhat in the nuddle of a residential block. The site is above average and is
landscaped with mature trees. This appraisal is based on the proper easements being r~orded
in the legal description to provide access to the subject property.
ADDITIONAL FEATURES:
Additional features include central air conditioning, fireplace and a rear eom:fete patio- 10x30;
Freestanding appliances have been checked for information only and am not included in the
CONDITION OF TIlE IMI~O~:
The exterior of the home is in ~ of some painting ~nd siding repair. Interior is
' items. The home offers
also in ~ of trim work and other minor carlmar~ a main floor
living room, dining room, bedroom, bath and k~tehen. The second floor offers two den areas
and two bedrooms. It appear that the main floor has been remodeled and a main floor
bedroom wall has been rmnoved to create a formal dinin~ room. Owner states that the roof on
the home is newer. There am some signs of interior leakage, however, owner states that this
happened before the new roof was installed. There is a well on the site that is currently not in
use. Owner also indicates that tbere is a large buried oil tank in the front yard. This appraisal
is bnsed on tbe oil tank bein~ in tact and not leaking. Subject does suffer from some func~onal
depreciation due to its aceens problems off of Baas Lake Road. This access will meet some
. buyer resistance.
ADVERSE ENVIRONMENTAL CONDITIONS:
There are no adverse envimnmenufl conditions noted. The only hazardous condition noted
would be if the oil tank in the yard is leaking. See atUched cover letter.
SALES COMI~ARISON COMMENTS:
Aa indicated in the neighborhood analysis, the subject is located on the b?rder of .N..e~ Hope
and Crystal. The apprai~--r has made an exhaustive search for 1.5 story nomes within a o.ne
mile radius of the subj~t property. Unfortunately, due to the subject's location, me
comparables are all located in Crystal. It should be noted that Crystal is a very.comparable
neighborhood. It is in similar proximity to downtown Minneapolis and is also m the san~
proximity to family needs as well as located in the same school district. I found no location
adjusUnents were required. The three comparables have been applied to the Sales Comparison
Analysis and adjusted for their differences. Major adjustments are as follows.
Comparable #1 was adjusted upward for its smaller size and lack of a walk-out low. er level. It
was also adjusted upward for its lack of a fireplace. Downward adjustments were to_r s. upe.rior
bathroom count, as well ns its superior functional utility with typical street access. It also naa
2852 Anthony tam, Sooth, Minm~polis, Mim"msom 55415 (612) 781-060~ Fax: 751-7526
BCL Appraisals, Inc.
BjorklUnd. Carufel. Lachenmaver, Incorporated
SALES COMPARISON CO~VI~NTS: (continued)
a porch.
Comparable g2 was adjust~ upward for its smaller site size aa well aa it~ slightly oldera~e and
inferior room count. It also did not have a walk-out ba~ment or no basement stool. Upward
adjustments wer~ also for its smaller garage, lack of patio and no fireplace. Downward
ad'..j~ent was for its stucco exterior and its better updated condition. It also had superior
utality with ac.c~aa off of a typical r~idential str~-t.
Comparable #3 was adjust~ upward for its smaller site
out be~ment. It also did not have c~ntral air conditioning, and only had a one car garage.
Dow~w~xl adjustment waa for its new UlXlated decor with newer kitchen, its 612 square feet
finished in the basement, its deck, fence, and superior built-in features that included a hot tub
Th.~. th,,r,_~_ compS, les .r~.reselg acrms s~ction of 1.5 story homes that ar~ located within the
s..u?ject s com_.L~an~ ..n~l~hboflloed.. Compm*abl~s have I:~n adjusted consi~ntly for their
~zzerences. ~l~ese i~J.~men'~ ire
_ . on the appraisers experience aa well aa paired sales
and physical exterior impection of the comparabl.es. Compm'ables indicate a tight range of'
value from $77,000 to $79,000. Indicated fair martet value of $78,000 is well supported.
CONDITIONS OF APPRALqAL:
The subje~ has been appraised per the acceptable condition of the buried oil tank. If
is leaking and causing soil contamination, this appraisal will be null and void. T~is is
comidered a summary appraisal report.
28.q2 A~ Lam Smf&, Mb~ Mimmmm .SS,418 (&I:Z) '~1 -(M~S
CO~a~CK & SONDaiLL, P.A.
~*~,~ ~ s~c~_ ,-~TTORNEY5 ,-~T LAw
,.,~.~ ~ ~:~ Edinburgh Execuuve Office Plaza
,~,L,~C sr~r 8525 Edinbrook Crossing
Brookl~ P~k. Minnesota 55443
TE~P~NE (612) 42~S~1
FAX (612) 42~S~
July 5, 1995
Mr. Jerry McBrady
7621 Bass Lake Road
New Hope, MN 55428
RE:Acquisition of 7621 Bass Lake Road
Our File No: 99.29431
Dear Mr. McBrady: .-
In follow up to our meeting on June 28, 1995 please find enclosed
a Purchase Agreement for acquisition of the referenced property by
the Economic Development Authority in and for the City of New Hope.
Please also consider this letter our summary statement required by
Section 24.102 of the Rules and Regulations implementing the
Uniform Relocation Assistance and Real Property Acquisition
Policies Act. As we have discussed, the $78,000 purchase offer has
been deemed just compensation by the EDA based on the appraisal
prepared by Ron Lachenmayer of BCL Appraisals, Inc., a copy of
which was already provided to you. Subsequent to our meeting, I
did discuss the oversized lot issue with the appraiser. He did
indicate he took the oversized lot into consideration and valued it
at $35,000 as indicated on page 3 of his appraisal under the cost
approach to value. This amount is stated in the upper left hand
corner of page 3. The appraiser informed me he considered
additional costs you would incur to subdivide the property and
there is a possibility that the City Council would not approve the
subdivision. As a result, the appraiser determined the $35,000
value to be a reasonable value considering the oversized nature of
the lot. As a result, his appraisal values range from $78,000 on
the low side to $83,500 on the high side depending on the appraisal
approach used to determine value. Since the sales comparison
approach is the more reliable approach, the $78,000 figure was used
to determine just compensation for the property.
Page 2
Further, it has come to my attention a fuel oil tank and well are
located on the property. Your wife informs me you intend to remove
the tank. We have no objection to your removal of the tank,
however it presents a possibility for contamination for soil and
ground water, I am assuming no tests have been conducted to
determine the existence of contamination. This problem does have
a diminishing effect on the property val.ue as well. The EDA wilt
also be incurring costs to cap and seal the well on the property.
Given these circumstances, the appraised value provided by BCL is
not unreasonable despite the oversized nature of the lot.
Naturally, this offer would include acquisition of fee simple title
to the property as well as all improvements on the property subject
to no other interests.
The EDA will also pay all incidental expenses to transfer title"
including recording fees, abstract extension costs and the state -
deed tax.
As we discussed, a relocation firm will also be contacting you to
determine if you are entitled to any relocation benefits due to
your displacement from the property resulting from the acquisition
of the. property by the EDA.
As you know, the EPA intends to consider this matter at its July
24,1995 meeting. Therefore, your response to, the purchase
agreement enclosed herein by July 19, 1995 wi)l be greatly
appreciated.
Thank you for your attention to this matter.
Very truly yours,
-* ' '.~AL SIGNED
Steven A. $ondrall
New Hope City Attorney
and EPA Attorney
slt2
Enclosures
cc: Daniel J. Donahue, City Manager
Kirk McDonald, Management Asst.
Hennepin County
.A.n Equa~ OF?,~rtup.!tv Em?lever .
August 1, 1995 '~ ~2_ --- _5._X '.'~N.9 '
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428-4898
Attn: Kirk McDonald, Management Assistant/Community Development Coordinator
Subject: A~Review for 7621 Bass Lake Road ~"'~.. -'
Dear Kirk:
As requested in your letter dated Suly 10, 199:5, 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, appropriatene~ of opinions and adjustments, and the reasonableness
of them.
The repen by Ron Lachenmayer, dated May 24, 199:5, with the same effective date, presents an
opinion of Fair Market Value (Fee Simple)of the property at 7621 Bass Lake Road (PID #0:5-118-
21-33-0027). That opinion of value is $78,000.
This report is thorough and complete following accepted standards and practices. The data
presented is relatively accurale and relevant. The comparables 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 CountT General Services
County Assessor Division
A-2103 Hennepm County Government Center
Minneapolis, Minnesota 55487-0213
City of New Hope
August 1, [995
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 signing this review
Yours truly,
Glen F. Busitzioy,
Principal Appraiser
GFB:jb
Augt~qt 7, 1905
Steven A. Sondrali
New Hope City A~mmey
Corrick & ~ondrail, P.A.
859.5 F.,d/nbrook Cross/ng
Suite 203
Brooklyn Park. Minnesota 55443
RE: Acquisition of 7621 Bass lake Road
Your File No. 99.29431
' : l:' : :{ [[' ~,;.. ~,,, ._,~ that Jerry and Karla McBrsdy hereby reject the EDA's offer of $78,000.00
-., B:rckasc thy abov¢-r¢£crcnccd property. Mr. and Mrs. McBrady recently had an appraisal
done by .Holker'.s Realty & App.~. ! have enclosed a copy of th~ appraisal for your
As you can sec thc appraised value of the house and la d is at $119,000,00.
A~ you can see by looking at thc first Addendum to thc appraisal thc v~uc of thc additional
land is approximately $30,000.00 after sublractin~ out estimated special asseasments. Thc,se
figures were based upon a land sale a~ 4217 Fl~g Avenue North on April 25, 1995.
By my calcujations the McBrady's property will be contn'buting two f',fl! lots to the proposed
redevelopment, wh~.--ea~ thc surrounding homes will only be contrib-iing on~ lot.
Additionally, should the city wish to condemn the property the McBrady's would be
compen,sated based u.tx~n the proper~e$' high~$t an~ best use.
! have been autho.,-izcd by my c!icnt$ to IXOPo~ a counter-offer of $110,000.00 for thc
,,~mi:a~e of the pro?r,'.y. Yn¢ oil ~ that was a concern has been removed from the
.'-.'.:::.:r.:v. A cie, sine could take place as soon as the City appfo¥c$ *,ho p~irchasc price.
<" · 'i.: ::? C'::v :-l~c: not ~o purchase this property at this time my cli,~nt's will begin ,,he
Au~u',t 7. ~99f
?age 2
~rc,.::,~s ;.~f subdi,:id.i,:g their property. According ;o your own appraisal the subdivision
:,-:. ::.: :~,~: ,-?,~cr :~.¢ valu¢ of Their house, and will only aclcl to me EDA's cost for this
Attorney ar Law -'
DTR:¢~m
enclosure
rq HOLKER'S REALTY & APPRAISAL
REALTORS - APPRAISERS · FINANCIAL SERVICEg - INgURANCE
T & V Trust
1101 Park Street
Anoka, Minnesota 55303
; ~,~-~:~e: ~12) 427.402~ * Fax: (612) 427-4579
........ .:--.~__~ ...... OF THOMAS O. HOLKBR, SE~ T...~FJtL ESTATE ~PPRAIS~
!. ~r~perty and Casual~¥ Insurance specialist s~nce 1g~$. (~xpert
2. Real as~ate Bro~er, speeial~sing in Zisting and
valuati.n ein~e
3. Appraiser sin~e ~O?a. (Xndependon~ Poe
4. ~e=t~fied Appraiser, Oer~f~ed Federal Reeidentia! ~ 4002~S2.
vx Fee ~ppra~ser. I have held my~ap~in~en~ s~nce ~anua~
ex~e~ience aXon~ vi~h ~eo~ble
....... :~..~ mpecialcy is resi~ill appEaisaXs. ~ovever,
~.~,~=cial. indus~rlal, fa~ and land appraisals, and
· :. :~-.~:a of ~he Unlvo~li~ of Ki~OOO~.
.2LiEI-[TS SERVED: ATaT Longlineo, Auto ~ers Instance
Anoka C~um=y; Alll~a~e Insura~ce Company;~way Realty Network,
Inc.; ~oka County Historical S~le~y~ JosePh ~derson,
A~Uorney; ~way; ~oka ~operties; Marvin H. ~derson
Construction Co.; Ameriuan~ys~al Sugar; As8ocia2es
services; ASCS; Appraisal hnagemon~ Company; B~eau of
Prisons; Boatmen's Reloca=i. on Semites; ~' of S~. Louis;
Byron Roed-Transe~ity; ~ell Telephone ~bs; B~iS Co.;
Brunswick Corp.~ Broc~ay, Inc.; Burlin~on No~hern; Ba~ock,
Lecher, Nielsen a Mannella A~orney~s; Be~a Wee=; Borg-Warner;
Bank of OXl~oma; BeePer Homes and Gardens F~ily Rolo~ion
Service; Cargill; conoco; Church of Jesus Christ oftener-Day
Sain=s; Chem-Exec Relocation; Corpora2e Moves; COldWell-
Banker Relocation Services; co~Gra~e Tra~fer; Ci=lcorp;
chicago & Nor=hwes=ern TransgresSion; Consolida=~ Papers,
Inc.; c[=izens state Bank of S2.Louis Park, ~; Cr~ive Dining
~.='~,.cation; Commonweal2h Rel~a~ion; CiCa Corp.; C~a Cola;
.lz.=rtson-Ho[ker Builders; Dupon~; Del~e ~eck; Digi2al
~.:~'~m%au corp. of Boston; Execu~rans; ~i2~le Relocation;
._-.~.,k~/= ~ome Consultan=s; ~pire Relocation;
..... :_-:: John Deers; FCI; ~S; Freddie Nec; ~,
* RECE I UE STOPPED *
Fuller; ~HAr FMC; ~'irst Capital; First National Bank of
First Nacional Bank of Anoka; F~rst Bank of ~outhdale; Pannim
Mae; First Bank Northtown; Faith Baptist Church of Ramsay;
7aLth Community Church; First National Bank of Wayzata; W.
~ ~'a~e ~ Co.; Good Time Attractions, Inc.; H. J. Heinz;
· ~'~ne~h M. ~olker, Attorney; Howard Relocation
,,'~.iI; Homeowner~ Marketin~ Services Referral
~a ~or~gage; IXI Assemblies; Island View Estates
.... Lc=t Gro~p); Kodak, Kerr-McGee Corp.; The Kissell
c~nutruotion; Knutson Mortgage; Land O'Lakes;
..... =~..ice; aaenner Reloca:ion; 3M; MGIC; Merrill-Lynch
· % ..n ~an~ement; Miles Nomes; Motor Oil Chicago; Meredith
~_&kcaation; Minnesota Limited; Northern Telecom; North
~.?~zaiua~; Na=ional =quity Relocation; Northern States Power
~o.; Northwestern Bell TeleDhone Co.; Northrup King; Nationwide
Relocation Servcie: Otis Elevator Co.; Owens-corning
Fiberglass; Thomas J. o'connor Attorney; Plus ~el~ation; PHH
us Mortgage; P~; Home~ui=¥; Pruden=la~ Relocation;
Pabst Brewing; Packaging CorD. of America; Pil~bury Company;
ReMax Relocation; RTC; Relo~a~ion Re~lty fler¥i~e; ~epu~lic
National Bank of Dallas; Relocation Resources; Rum Biver Lumber.
co.; Sara Lee; S~ate Farm; Sears; Smith & Nephew; JuageSpencef
Sokolowski; Sport About; Security Peaerml S & L Ass'n.; Jerry '-
seek, Attorney; Target; Ti=or; Reloca=ion Management; Tenant
co.; Tennessee Gas; Traveler's Relocation; Twin City Federal
Servcie corp.; Tomco Investment; Tomco Real Estate
UPS; USDA; U. S. West; VA; Van aelco, In=.; Verex corp.; wagner
Zlec~rlc Corp.; Williams Relocation Services; U. S. Property &
kDDraisals; Western Relocation; an4 numerou~
attorney's, other private parties and individuals.
~i-ik-c Didrec=or¥ (~mploye& Reloc&~ion Council);
~z of Realtors and NAR Real Estate Appraisal
~OVEP3.G~ IN MINNESOTA: 23 Cou~le~
F~ APPRAISALS IN: A/~oka, Benton, Carver, Chisago, Dakota,
Goodhue, Hennepin, Isanti, Kanabec. Le Sue~r, McLeo4, Meeker,
Mille Lacs, Morison, Pine, ~emeey~ Rice, Soo~, Sherburne,
sible~, Stearns, Washington, wright Counties and others. These
counties encomDass the enti~eTwin Cities and ~u~rban area ~
Minneapolis and St. Paul as well as a major ~=tion of Eas~
CenUral and Sou=hea~ Minne~o~a.
Th~m~' O. Holker, S~.
NA~ Real Ks~a~a Appraisal Section
Certified Fe~eral-Resi. d&ntial
Appraiser, ID 9~ 40031S3
- -- ~"~ ~-:~ ~"~ _~_~
~c~¢~/C~ Jer~Y & ~r~a Hc~dy_ _.... ~". ..... .... 7621 ~ ~.3ke Roa~ ~v ~, ~ 55~28
~Oma~ ~, Holker, Sr. ~.~,:~ []0~ Park S~rcct,
':" ,:% $ -',' :.;7 'rc:,,,;.~: 3~'~t lot us~ ~ r~ ~
/
Non~ q~ or a~re ~, ..,
"'-- '" ......... '. · ~.~'~':""'='I'~ ~' ~ c~'*"-i
: ~.- ....... .~'~a~ i'~4 ~
~ '( . ~ .... ~. -~ .
~=::._'. '___, _ cz4 .L
~ ~':.: :, .. : ~ ....
~T,~,n,~, ~/~. - l~ ~. {~, [~1~
~ vt~v]/~. I~ - ~ C!l~
~ ....... cc,= =r.~zi~, ~i,~ atdi,~, fm~~.~n
' ' :':- '.' ~-.'~ '~ ~4.%~t~4 8,93
ADDENDUM TO APPRAISAL
P~OPERTY ADDRE$S~ 7621 Bass [.ake Road New Hope, MN 55428
SITE VALUE OF 13.500 SQ. FT ..........
~!TE VALUE OF 18,000 SQ. FT.
remainder lo= value a£tar sub[ra~in~
::f [99~, 4~7 Flag Avenue Nor~ (vacan= land/lei) sold for
rat ~e: 75'x179'x179'X~50' = 12,530 ~o f~. 10~ -
;,~= ~.~, ~t. ~.e~al descript£on~ Lo= 1, Blc~ 1 Flag .-
water, ~- ~Decial assessments = $30.000. value for -
remaindur o£ land.
I~DD;I~UH.
T~e suDJec= w~ Dull= in; 1954.
apprOX.
only" =~a= wall for~ a 10%-30% build~ ~ofi~.
~ / Deo.~e~sing)
1994 -- 9e.~4 %~ ~99~ - '97.86
BCL APPRAISALS
BJORKIXND, CARUFEL, LACHEN,%IAYER, ENC.
2852 ANTHONY LANE SO., MINNEAPOLIS, MINNESOTA 55418 (612) 781..0605 Fax: 781-7826
BRAD B. iOR.I~LTN'D MAL $~.A RF. AL HSTAT~ AP~RA/$ERS
RON LACHENMAYER ~,. CONSULTANTS
August 24, 1995
Steve Sondrall, Now Hope City Attorney
Corric~ & Sondra11, P.A.
Edinburgh Executive Office Plaza
8S25 Edinbrook Crossing
Suite ~203
Brooklyn Par~, Mn 55443
Dear 5=ever "
As per your request, I have reviewed the appraisal completed by
Mr. Holker. It is my opinion that his estimate'of fair marke~
value of $119,000 is excessive.
In the Sales Comparison Analysis, this is the section on the
second page where ~he subject property is compared to other
sales, I £ind ~hat Hr. HolRmr has used rambler (one story)
comparable sales compared to =Re subjeot*s 1 1/2 story design.
This is no~ considered to be prudent appraisal prac~cice because
the comparables are not of similar design. He Ks 'not comparing
apples wi~h apples.
One of the larges~ discrepancies ~hat I find is in the Sales
Comparison Analysis on the second page. Mr. Holker has adjusted
upward compare,les #1 a~ ~2~ $8,000 for ~leir smaller s~te
sizes. He then concludes ~hat ~_~e estimate of fair marke~ value
based on the comparables chosen is $89,000. The $89,000 appears
to already have taken into accounC t~e fact V~a= v~le subject Aas
a larger site size by the adjustments indicated. Mr. Holke= than
adds an additional $30,000 on his estimate of fair market value
for this additional lo~. It is clear in T21e Sales Comparison
Analysis tAat he has already adjusted upward for ~he comparables
smaller site size in ~he adjustment grid. In other words, he has
doubled up on ~he value of the addition~l lot.
Page 2
Mr. Holker hae indicated that the additional lot is worth
$30,000. He does not stipulate in the appraisal anywhere that
the city will approve a builaable site due to the inaaequate
street access. It is also not clear where the additional lo~
would Be subdivided from =As existin~ parcel and if the proper
set-back requirements would be me=. The land sale that Mr.
Holker makes re£erenoe tc in his appraisal repor~ iS located on
Flag Avenue faa= ~as s=ree= access and is cle~ly a buildahle
lot.
Un=il the city indlca:es t~at ~A~ere is enough land available on
the subject's site to subdivide and have an additional building
site, the estimated land value given by M~. Ho~er ~f $~o,o00 is
~u~lding per, i: and gran: a subdivision tha~ would meet all legal
.. zonin~ requirements, then possibly the value of =he existing
larger parcel would increase. But until that t~e, we ~ave a 1
1/z s:ory ~ome wl=~ a larger than normal sate, located on a
private street. ..
I= is my opinion that my original appraised value is more "
realistic because I have-chosen comparable sales of s~ilar
design and adjusted consistently. My repor~ also takes into
considera=ion the subject's large site and ~ feel my a us=men=s
wi~n relationship to this large site is realistic and reflects
the ~hinki~g eT a typical Buyer.
sincerely,
BCL Appraisals Inc.
9~-0ZYZ-A
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
Kirk McDonald Item No.
By: Management Assistant By: 8
DISCUSSION REGARDING REQUEST FOR/TAX INCREMENT FINANCING ASSISTANCE FOR
CAR-X/PUD DEVELOPMENT AT 7180 42ND AVENUE NORTH
David Lasky, owner of the property at 7180 42nd Avenue, has submitted the attached letter requesting
'consideration of $200,000 in tax increment financing assistance for a proposed Car-X/PUD at the
northeast comer of 42nd and Nevada Avenues. Staff is seeking direction from the EDA on this request.
Lasky submitted an application that was considered at the September 5th Planning Commission meeting
for Concept Stage Planned Unit Development (PUD) approval to allow the construction of a 4,235
square foot Car-X Muffler facility on 42nd Avenue. There is currently a 4,400 square foot building
containing "G.I. Joe Surplus" and "Down On 42nd Avenue" stores on the property, thus the PUD
application to allow two buildings on one parcel of land. Due to the fact that the plans were incomplete
and did not address a number of staff concerns, the Planning Commission tabled the request to their
October meeting. Lasky is continuing to revise the plans and has requested that his application be tabled
until the November Planning Commission meeting. If the Concept Stage PUD were approved by the
Commission and Council in November, he would then need to proceed through the Development/Final
Stages of the PUD process.
Issues that the EDA should take into consideration when considering this request include:
· Do the plans for the development meet the criteria of the City?
· Is the property unique in that it may not be developed without TIF assistance?
· The developer needs to submit detailed development costs to the City so a determination can be
made as to what expenses are eligible for TIF assistance and what amount of increment will be
generated by the development.
· Under a new Minnesota law, the developer must establish that the development will create a net
increase in jobs to qualify for the assistance.
Staff recommends that the request be tabled until the time that the Concept Stage development plans are
presented to the Council and requests that the EDA provide direction as to whether they want staff to
begin analyzing this request.
MOTION BY SECOND BY
Review: Administration: Finance:
2506 MONTEREY AVENUE SOUTH · ST. LOUIS PARK, MINNESOTA 55416 · PHONE (612) 922-33,34 or 377-1167
Mr. Dan Donahue, City Manager
City of New Hope
4401 Xylon Ave. N.
New Hope, MN. 55425 Sept. 20, 1995
re: 7180 42nd Ave. N. Car-X development
Dear Mr. Donahue:
As you know, I am trying to put together a PUD project on the
property at 7180 42nd Ave. N. This property has been under-
utilized for many years. After much marketing, we finally have a
tenant, Car-X. We are sure this project will be of benefit
all parties involved, including the City of New Hope.
The building site has a n,,m~er of elements that make development
more difficult and expensive, one of which is the 12 foot drop in
elevation from south to north on the property. During the irst
talks with Car-X, a budget for rental was establish based on the
preliminary data we had.
Because of the high cost of grading, filling and developing the
site, our costs have risen above expectations. Added to this has
been an enormous ~mount of landscaping and other re~uirments that
the Planning Commission has asked us to incorporate.
As a result of all of the above items, we are substanially over
budget to do the development. At this time, I would like to
request a Tax Incriment Financing grant of $200,000. so that the
plans can move ahead and become a reality. The funds, if
granted, will be used for site development.
For these reasons, we need TIF to make this development work
within a budget that makes rental to Car-X possible. Once the
project is completed, we anticipate that it will double the real
estate tax return on the property.
I look forward to hearing ~rom you soon.
Sincerely,
David Lasky
II
APPLICATION
TO THE
CITY OF NEW HOPE
FOR A
P.U.D. PROJECT
AT
7180 42ND AVENUE NORTH
REAL ESTATE
FAX (612) 922-8540
2506 MONTEREY AVENUE SOUTH ST. LOUIS PARK, MINNESOTA 55416 PHONE (612) 922-3334 or 377-1187
August 7, 1995
Mr. Doug Sandstad
City of New Hope
4401Xylon Avenue North
New Hope, MN 55428
RE: Planning Commission Application
for 7180 42ndAvenue North Property .
Dear Mr. Sandstad:
The following information and forms are enclosed to fulfill the requirements for
our request for a PUD on thts property at 7180 42nd Avenue North In New Hope.
In ftltng this request, we are asking for approval to erect'an additional
bulldlng of approximately 5.000 square feet.
Sincerely yours.
David Lasky
DL/jj
Enclosure
HISI'DRY OF l'ltE SI'l'l~
Historically, an existing building now occupying a small corner of the site was,
in 1958. the New Hope City Hall.. As the City grew. the City Hall location was
changed and the 7180 building then became the New Hope Municipal Bar and Liquor
Store.
In 1978, David Lasky purchased the property from the City. and other partiqs
purchased the bar business. This continued for about ten years until the
subleasing tenants lost their liquor license.
At that time. the building was vacated and David Lasky took possession and
started to seek a tenant for the building. A few years later, two tenants were
found and the building was remodeled to meet the needs of these two retail
operations. These are both small businesses, but they meet the needs of the
community.
-3-
AB(X/r 1)lE SITE
If you look at the elevation survey, or elevation detail on the recent survey,
you will see that the site has some complex and costly site development problems
because of the contour.
There are elevation changes in excess of 12 feet.
For this and other reasons, the property does not lend ttself to easy development
nor to as wide a variety of uses as a level stte would.
For the past few years we have been seeking tenants for this property. We
finally have a user that is worthwhile for the City and who will accept the extra
problems that this site development calls for.
-4-
THE PROJECT
Once we have approval for the PUD project we have outlined, we will build a Car-X
muffler, brake and alignment facility. This bUilding will be similar to other
buildings of the chain, but designed and 'treated' in a more sophisticated
manner.
It is our intention to make the building and surrounding land attractive:
functional and profitable for the client. At the same time this will provide
employment for people in the area as well as a needed service to the community.
A1 though our fami 1 y has been engaged i n bui 1 dl ng apartment but 1 dtngs for the past
35 years, most of our projects have bccn years ahead in design, function and
quality. We expect to do the same with this project.
The project will be financed by current funds of the Lasky family.
A review of the bus. iness and financial statements of the Car-X franchisee, shows
them to be outstandingly successful in the Minnesota and Wisconsin locations, the
two states they operate in.
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THE DEVELOPHENT TEAH
The owners of the property who will be developing the site, are members of the
Lasky family who have been building apartment buildings and remodeling commercial
property for 35 years.
The building is being designed by Wemunger Architects of St. Cloud. They have
been the lead designers of Car-X facilities in this state. The plans we will be
using are a modified and enhanced variation of proven designs.
Site planning and landscape design, as well as consulting, will be done by the
firm of Bernard Herman Architects. Thts firm has a long history of important
building design and extensive experience and knowledge about the needs of the
City of New Hope.
This PUD project will vastly improve the appearance, use and benefits of this
site at 42nd and Nevada.
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