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111395 EDA Official File Copy CITY OF NEW HOPE EDA AGENDA EDA Regular Meeting #17 November 13, 1995 Agenda # 18 Pres/dent Edward J. Er/ckson Comm/ss/oner W. Peter Enck Comm/ss/oner Pat la V/ne Norb¥ Comm/ss/oner Gerald Otten Commissioner Terri Wehling 1. Call to Order 2. Roll Call 3. Approval of Minutes of October 9, 1995 4. Resolution Awarding Contract for the Construction of a Handicap Accessible Twinhome at 6073-6081 Louisiana Avenue North (Improvement Project No. 519) 5. Adjournment CITY OF NEW HOPE · 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes October 9, 1995 Meeting//16 CALL TO ORDER '-- President Erickson called the meeting of the Economic Development Authority to order at 7:02 p.m. ROLL CALL Present: Erickson, Enck, Otten, Norby, Wehling (arrived at 7:03 pm) Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes of September 25, 1995. Voting in favor: Erickson, Enck, Otten, Norby; absent: Wehling. Motion carried. TIF DISTRICT President Erickson introduced for discussion Item 4, Resolution Approving Item 4 1995 Amendment to Master Modification to Redevelop Plans and Tax Increment Financing Plans and Requesting the Approval of the City Council. Mr. Donahue, City Manager, explained that this item pertains to item 7.1 on the Council agenda which is a public hearing to consider approving the 1995 amendments to the master modification to the redevelopment plans and the tax increment financing plans. The item is on the EDA agenda as well since procedurally, the EDA needs to make a recommendation to the City Council on the modifications. 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 all residents of the City. He stated the plan would be amended to include two additional properties; namely, the ice arena property (49th and Louisiana); and the Winnetka Elementary School site and adjacent recreational fields. By modifying the plan, if the City does future developments on either property and the developments meet requirements under state law, the City could spend excess tax increment funds. At this time there is a proposal for expanding the ice arena site; however, this has not been approved by the City. He emphasized that the City has no current plans for the Winnetka Elementary School site. He explained that the City does not intend to proceed with any development on the Winnetka Elementary site unless the City has the School District's full cooperation. It is possible that the closed building could be utilized for a future community center or other programming needs for the City. He reiterated that by modifying the plan, it will allow the City the availability of spending excess tax increment funds on future projects. EDA RESOLUTION Commissioner Enck introduced the following resolution and moved its New Hope EDA October 9, 1995 Page I 95-19 adoption: "RESOLUTION APPROVING 1995 AMENDMENT TO MASTER Item 4 MODIFICATION TO REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS AND REQUESTING THE APPROVAL OF THE CITY COUNCIL". The motion for the adoption of the foregoing resolution was seconded by Commissioner Otten and upon vote taken thereon the following voted in favor: Erickson, Enck, Otten, Norby, Wehling; and the following voted against the same: None; Absent: None; whereupon the resolution was d~clared duly oassed and adooted, signed by the President -- which was attested to by the Executive Director. IMP. PROJECT 523 President Erickson introduced for discussion Item 5, Resolution Relating to Item 5 Redevelopment Plan 85-2: Approving Redevelopment Contract with Gill Brothers Funeral Chapels, Inc. (Improvement Project No. 523). Mr. Kirk McDonald, Management Assistant/Community Development Coordinator, explained that the contract would provide Gill Brothers Funeral Chapels, Inc. $150,000 in ' pay-as-you-go' tax increment financing assistance for their project on the city-owned property at 42nd and Nevada Avenues. The contract states that upon completion of the project, the EDA will reimburse the developer up to $150,000 for eligible costs such as site improvements, land acquisition, etc. The contract outlines that wage and job goals must be met to receive the assistance. Commissioner Enck asked that the record reflect the fact that the EDA supports the agreement since the development meets the overall master plan for 42nd Avenue. EDA RESOLUTION Commissioner Enck introduced the following resolution and moved its 95-20 adoption: "RESOLUTION RELATING TO REDEVELOPMENT PLAN 85-2; Item 5 APPROVING REDEVELOPMENT CONTRACT WITH GILL BROTHERS FUNERAL CHAPELS, INC." The motion for the adoption of the foregoing resolution was seconded by Commissioner Wehling and upon vote taken thereon the following voted in favor: Erickson, Enck, Otten, Norb¥, Wehling; and the following voted against the same: None; Absent: None; whereupon the resolution was declared duly passed and adooted, signed by the President which was attested to by the Executive Director. SUSPENDED The EDA meeting was suspended at 7:10 p.m. to conduct the HRA MEETING Meeting and the remainder of the Council Meeting. RECONVENED The EDA reconvened at 8:21 p.m. MEETING IMP. PROJECT 519 President Erickson introduced for discussion Item 6, Resolution Approving Item 6 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). EDA RESOLUTION Commissioner Enck introduced the following resolution and moved its 95-21 adoption: "RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND Item 6 ORDERING ADVERTISEMENT FOR BIDS FOR CONSTRUCTION OF HANDICAP ACCESSIBLE TWlNHOME AT 6073 LOUISIANA AVENUE NORTH IMPROVEMENT NO. 519" The motion for the adoption of the foregoing resolution was seconded by Commissioner Wehling and upon vote taken thereon the following voted in favor: Erickson, Enck, Otten, New Hope EDA October 9, 1995 Page 2 Norby, Wehling; and the following VOted against the same: None; Absent: None; whereupon the resolution was,declared duly oassed and adopted, signed by th® 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 Development 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 property. New Hope EDA October 9, 1995 Page 3 Commissioner Enck asked the City Attorney to advise 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 Sarah Bellefuil ~ 11 - 13-95 Item No. By: Administrative Analyst By:// 4 RESOLUTION AWARDING CONTRA~2~ FOR THE CONSTRUCTION OF A HANDICAP ACCESSIBLE TWINHOME AT 6073:6081 LOUISIANA AVENUE NORTH, NEW HOPE, MINNESOTA IMPROVEMENT PROJECT #519) The City of New Hope published a request for bids on October 18, for the construction of a three bedroom handicap accessible twinhome at 6073-6081 Louisiana Avenue North. Bids were opened on November 3rd and the following bids were received: Contractor Bid Amount Michlitsch Builders $199,900 Martin Joseph Construction $201,137 Equal Access Homes $201,817 Dave Regal Construction $218,450 Hunerberg Construction $236,750 Parkos Construction $249,800 Meisinger Construction $283,900 Staff recommends awarding the bid to Michlitsch Builders, the low bidder, in the amount of $199,900. Michlitsch Builders has had experience in building accessible homes in the past and has built other twinhomes and single family homes in New Hope in the past. A budget for the project is attached. Per the budget, the revenue from the sale of the homes, the second mortgages, and the HOME grant funds cover the cost of the construction. CDBG Scattered Site Housing funds and EDA funds would be applied toward land acquisition, utilities, landscaping and miscellaneous costs. The benefits of the project to the City are the redevelopment of a parcel located on a major street, increased tax base and providing homeownership oppommities for a diverse population. The enclosed resolution awards the contract for the construction of the twinhome to Michlitsch Builders in the amount of $199,900. Construction will begin immediately upon approval by the City Council. Staff recommends approval of the resolution. MOTION BY ~ SECOND BY TUg 15:48 P, 02/03 CORRICK & [50NDRALL, P.A. 8525 E~nbrook Cros~in~ Sui~ ~203 B~ P~k, ~n~o~ 55443 November 7, 1995 Daniel J, Donahue New Hope EDA 4401Xylon Avenue North New Hope~ MN 55428 RE: Twinhome a~ 6073/6081Louieian~ Projec~ No, 519 Our File No.: 99.15045 Dear Dan: The bids for construction of the handicap acceeeible ~winhome ak 6073 - ~081 Louisian~ have been opened &nO ~he low b~d was submitted by Mic~11~sc~ Builders, Inc. The enclosed Resolution awards [he bid t~ the low bidder, and can be cona~dered at the next P~ease cal~ ~f you have any quea~ons. S~nceceq¥, Mar~in P. Matecha A~$t. New Hope ¢it¥ At~orne7 Enolomure Cc: Kirk McDonald, Management Ammt. (w/eno) V~lerie Leone, City Clerk (w/~n:) 8~r:h Bellefuil, AOminie:rative Ae~. {w/eno) B~even A, $ondrall, ¢it¥ Attorney ~0V-08-95 ~ED ~5:25 r,u~/u~ ---... EDA REGOLUTION NO ~5- RESOLUTION AWARDING CONTRACT -'- FOR THE CONSTRUCTION OF A HANDICAP ACCESSIBLE THIN HOME AT 6073 - 6081 LOUISIANA AVENUE NORTH, NEW HOPE, MZNNE&OTA ~MPROVEHENT NO. 519 BE ~T RESOLVED by the Economic Development AUthority in and for the City of New Hope (EDA) as follows: 1. That bids for the ~ons%ruction of a handicap accessible twin home at 0073 - ~081 LouisiAna Avenue North, Imprnvemant No. 519 were duly opened at the New Hope City Hall, 4401Xylon Avenue North, at 11:30 o'clock a,m. on the 3rd day of November, 1995, as heretofore authorized by the EDA. 2, That advertisement for bids for the construction of said improvemsnt waa published in the New Hope-Golden Valley Sun-Post, the official newspaper of the City, on the 18th and 25th days of October, 1995, and in The Construction Bulletin on the 20th and 27th days of October, 1995. 3. It is hereby found and determined by the EPA that the bid of Michlitsch Builders, Inc. for the construction of Said project in the amount of $199,900.00 is the lowest responsible bid submi:tea for the construction of said improvement; that Bonestroo, Rosene, Anderlik & A=$ociates, ~nc., Engineers for the City, have recommended to the EDA the sai~ low bid for the award of the con%r=~t for the constr~ction to the designated lowest responsible bid. 4. That the contract for construction of Improvement No. 519 in the a~ount of $t~9,900.00 is hereby awarded to Nichli~sch Builders, Inc. 5, That the president and ~xecutive Director are authorized and directed to enter into =n improvement contract in the name of the EDA with the lowes: responsible bidder, subject to the contracCor fur~ishing public surety bonds am required by ]aw. Adopted by the Economic Development Authority in and ~or the City of New Hope this 13th day of November, 1995. Edw. J. EricKson, President Attest: "'-'-' D~niel J. Donahue, Executive Director CITY OF NEW HOPE BID OPEN DATE: November 3, 1995 BID OPEN TIME: 1-1:30 AM BID ITEM: 6073-6081 Louisiana Avenue Accessible Twin Home # Name of Bidder Bid Security Bond Total Bid Amount I Advanced Companies 2 Dave Regal Construction x $218,450 3 Equal Access Homes x $201,817 4 Hunerberg Construction x $236,750 5 Martin Joseph Construction x $201,137 6 Meisinger Construction x $283,900 7 Michlitsch Builders x $199,900 8 Parkos Construction x $249,800 9 10 11 12 13 14 15 CITY OF NEW HOPE SPECIFICATIONS FOR HANDICAPPED ACCESSIBLE TWIN HOME AT 6073 & 6081 LOUISIANA AVENUE NORTH NEW HOPE, MINNESOTA 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. Sidilm 1. Aluminum with aluminum soffits & fascia. Include exterior wall Tyvek B. Brick 1. Per Plan, $365.00/1000, Material Allowance. 2. Flashing at top of brick C. 1. 16' x 7'6" Steel paneled door w/low headroom kit. D. Garnne Door Ooener 1. 1/2 HP with 2 controls E. Insulation 1. R 45 Attic blown 2. R 19 Insulation batts in walls 3. 6 mil Poly exterior walls & ceiling 4, Party wall w/RI 1 Insulation 5. Foundation - RI0 2" hi-density styrofoam insulation 42" deep - vertical inside wall block 6. Sound channel located on the living quarters side of zero-lot-line pa~/wall 1. Install all door hardware and locks 2, 2 Pocket doors 3. Set cabinets, per plan (may require slight variation due to homeowner specifications) 4. Cap opening on 42" high wall between dinin$ room & living room w/oak board 5. Base md shoe in aH vinyl & ceramic m 6. Drill cabinets for hardware & mount hardware 7. Mount addre~, numbers - Black 4' size 8. Install Minnesota Disability Code grab-bars in bathroom G, Rooflna 1. Standard 3-tab 240 pound asphalt shingles · H. Gutters 1. Front entry sidewalir area - along 24' garage & 5' return to outside at valley. Leader & downspout placed at low point discharging onto grass area. I. Floorina I. Carpeted areas: bedroom~ 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 Floorin~ 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 Til~e_(floor) Specs: American Olean, Porcelain ceramic Mosaics unglazed floor tile with 2x2 abrasive grain - slip resistant surface or equal. Provide specs on substitutes. $. Closet Sheivin~ 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. Ceran~ 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 cernmic tub surround at the main bath tub with standard $2.30 per sq. foot materials allowance. Lo Mirror 1. Both bathrooms - full width of vanity top & 40" high. M. Counte~ Tom 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. Hmtinn 1. 80% Efficient furnace, Lennox 2. Honeywell chrono~ 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. 10 Seer Lennox A.C, 0ocated near bedroom//2) Tramite heat system per plan with access to ducts per Building Code Chapter 1345.1004 Section t004(e) P. Plumbin~ ° 1. All white fixtures with chrome components 2. One floor drain in the utility room 3. Kitchen sink - stainless steel, 2 compartments 4. Bath tub - Kohler Villager (white) with valve near front edge of the tub 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. lnsul/,~e 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 ail 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 #7210 -- 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 Bar 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 1. 150 AMP, Ivory rocker devices, wire one appliance, ? phone jacks, 2 cable television 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 g~a~e 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, i siren. 2 motion, 1 h~a~ sensor. Prewired 2 keypad locations. 6. NOTE: Electric meter locations may be different than breaker box location. R. Masom'v 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 casem~ts, sized per plan, w/nine tandem latches (flashing at windows per manufacturers specifications) 2. Exterior door~ - 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. 4. D.~wali - 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 7. Include functioning gable louvers at garage and gable T. Cabinetry 1. Oak cabinets with custom countertop, heights per Homeowner specifications 2. Flat panel door style with picture fram profile (Knapp #207) 3. Cabinet pulls 4. 4 Roll out shelves 5. 1 Pair lazy susans 6. I Regular size stack of drawers in the kitchen 7. 2 Bread boards 8. Single wall hung laundry tub (no base cabineO 9. Clad interior 10. 30" Upper cabinets, per plan 1 I. 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 rafting 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 backin~ 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. t. Stained, sealed & varnished woodwork 2. Primered & painted walls 3. Paint garage door 4. Exterior staining, cedar 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. Curb replacement shall also include curb removed due to utility service. X. Sewer & Water 1. C!ty. will assume responsibility for constructing new sewer/water lines from the street to the prope~¥ line. (see attached drawing) The builder will be responsible for connecting sewer and water from 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 height~ and random elevations. 2. Remove all tree stumps. AA. Permit~ 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 t~av for and include in bid all other fees, charges anti surcharges, includin~ electrical uermit fee~. BB. Trash Removal 1. Provide dumpster CC. Include $2,500 appliance allowance per unit in bid $5,000 DD. Include $850 lighting allowance per unit in the bid $1,700 EE. ProfesMonallv Cleaned 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_fit be included in the total bid amount listed on the previous page. If any of these options are requested, it will be the buyers re'sponsibility to pay for them. $ ~ 1. ~1~ol = ~ 2. Completed Security System = $ ~O/) ~ 3. Retr~table d~rs at the kitchen si~ cabinet 4. Firepl~ (g~) = $ ~ ~ 5. Fold down la~ t~le $ ~D ~ 6. Complete lawn sp~er system $~ 7. Fold do~ shower se~ $ ~ ~ 8. Ger~r h~dic~ ~ssible stol $ //ff~ 9. Non-slip v~yl vs. Amtmng "Fund~en~s' Address Telephone Numb~ PLEBE ~~ QUOS BY 11:~ A.M. ~AY, NO~~ 3, 1~5, TO: ' Ci~ of N~ Ho~ N~ H~, MN ~5428 ~ quot~ ~ill ~ ~mid~ by ~ N~ Ho~ Ci~ Co~cil ~ ~ Mo~y, Nove~ ~3, ~5 C~c~ m~g. ~1 wo~ ~ to ~e lowmt ~mibi~ bi~ will ~ ex~ to ent~ ~to a ~ wi~ ~e Ci~ to ~ ~e ~lmion of ~. wo~ ~ a t~y m~-~. Pay~t will ~ ~e by ~e Ci~ u~n ~~ of ~ ~i~ ~d completion of ~1 ~ wo~. BUILDING CONSTRUCTION CONTRACT FOR 6073 LOUISIANA AVENUE NORTH LICENSE NO: By this agreement dated the day of , 1995, a , and licensed buildin9 contractor, ~innesota 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 specifications 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, H~nnepin County, Minnesotav'" ' 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 A9reement, 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 alt 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. In 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 exac~ 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. r-6~, Safety.and Convenience of' Private. and Public Property. The Builder shall not enter upon private property for any purpose without obtaining 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, government charges and 2 inspection fees. Notwithstanding Lhe foregoing, all building permit fees charged by the City of New Hope, as well as sewage connection charges and water connection charges, shall be waived 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. Chan~e Orders. [fa 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 contract 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 Znsurance on standard form C.I,C.C.-701 or Accord 25 forms showing the following insurance coverage and listing the Owner as a loss payee under the policies: 3 A. Comprehensive General Contractor Liability - $500,000 B. Automobile Liability for All Vehicles - $500,000 C. Workman's Compensation - Statutory Amounts O. 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 StatUte~ §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 pPovided under this contract shall pass to Owner free and clear of all liens, claims, security interests and encumbrances. 13. ~nspections. The Owner and its representatives shall have the right 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 to 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 Nope 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 55 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 and hold harmless Owner, ~ts agents and emoloyees, from and against all claims, damages, losses and expenses, including but not limited to attorney's fees, 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 of them may be liable, regardless of whether or not it is caused in part by a party indemnified hereunder. 16. Indemnification Against Mechanic'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 of the Work 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 objected 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 of the subcontractors and any person~'-or'organTzation$'directl~.'or indirectly employed by them and persons or organizations for whose acts any of them may be liable to the same extent that contractor is responsible for the acts or omissions of persons directly employed by contractor. 18. Assienment. '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 May Terminate. Upon the occurrence of any one or more of the following events- A. Builder's adjudged bankrupt or insolvent; 6 Builder makes a general assignment for benefit creditors; C. A trustee or receiver is appointed for Builder or for any of Builder's property; D. Builder files a petition to 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. If 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. Zf such costs exceed such unpaid balance, Builder shall pay the difference to Owner. In finishing · the wo~k~ Owner shall not be requi-'red -to~o~i~ ~he~-lowest'f:igure,--- 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 Oiscrimination. For the work under this contract, Builder agrees that in the hiring 7 of common or skilled labor for the performance of any work under %his contract or any subcontract hereunder, the Builder, material suppliers or vendors shall not, 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, ip any manner, discriminate against or intimidate or prevent the &mployment 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. Notice. 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 unde. r.th$.s'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, NN 55443 (612) 425-5671 8 IN WITNESS WHEREOF, the parties to this contract have hereunto set their hands and seals as of the day and year first above written. ECONOMIC OEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, OWNER By Its President By Its Executive Director Its STATE OF MINNESOTA ) 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 Minnesota municipal corporation, on behalf of said municipal corporation. Notary Public 9 STATE OF NZNNESOTA ) COUNTY OF ) The foregoing was acknowledged before me this day of , 1995, by -- of , the , on behalf of said Notary Public c: \wp51 \cnh\cont ract. t)O 7 10 ADVANCE REQUEST Payment request to Owner in the amount o¢ $... Request No. Dated: BUILDER REQUEST FOR PAYMENT TO: EconOmic Development Authority in and for the City of New Hope 4401Xylon Avenue North New Hope, MN 55428 As Builder under the Building Construction Contract for 6073 Louisiana Avenue North between ("Builder"), and the Economic Oevelopment Authority in and for the City of New Hope, Minnesota ("Owner"), dated , 1995 (the "Contract"). All terms not defined herein shall have the meanings set forth in the Contract (as hereinafter defined), if any. 1.. Build~r..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 of Ne w Hop e Building Official Date: Project Designer c:\wpSl\cnh\60?.exb NOt'l: 4/'It Pfrb-g ofll WAY Wt~ I1~# ~ OYglg WAY :~° 0.¢. '¢1' ' -r,, ~ ~. o 0 ~'.~ , e,J., / C~) :o. ~4.o ?2 " ,,,, ~/ ~ .66.67. -.~- L , IOO.,O0 , , .... ,..,., ~' ~..~ . m,- _ ~--~'1 '", ,'~ '--' "-' ' I ', ~.~' ~ew si~ewa~'~ , .._..,., _~-,~ <:~ ·0 - --I~.~?-- I Utility Plan 6073-6081 Louisiana Avenue North Scale: 1" = 30' 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 Landscaping $ 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 (marketing and dev. fees) $ 4,000.00 EDA Housing 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\6073bud 1 .xls Page 1