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062794 EDA Official File Copy ! C~Y OF NEW HOPE I I EDA AGENDA EDA Regular Meeting//8 June 27, 1994 President Edward J. Erickson Commissioner W. Peter Enck Commissioner Gerald Otten Commissioner Terri Wehling Commissioner Marky Williamson 1. Call to Order 2. Roll Call 3. Approval of Minutes of June 13, 1994 4. Resolution Establishing The Economic Development Authority as a Neighborhood Land Trust to Act as Authorized by Minn. Stat. §§462A.30 and 462A.31 5. ResolutiOn Establishing Development Relationship with CO-OP Northwest Community Revitalization Corporation to Construct Specially Designed Twin Homes at 5009 Winnetka Avenue North (Improvement Project 505). 6. Motion Approving Listing Agreement With Thorpe Bros., Inc. to Market City- Owned Property at 7300 42nd Avenue North 7. Consideration of Request by All Star Sports for Assistance with Site Improvements 8. Consideration of Request By Broadway Village For Increased Loan Support For Community Center Project, Improvement project No. 513 9. Adjournment CITY OF NEw HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes June 13, 1994 Meeting #7 CALL TO ORDER President Erickson called the meeting of the Economic Development Authority to order at 7:05 p.m. ROLL CALL Present: Erickson, Enck, Otten, Williamson, Wehling Staff Present: Sondrall, Hanson, Donahue, Leone, Watts, McDonald, Bellefuii APPROVE MINUTES Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to approve the EDA minutes of May 23, 1994. All present voted in favor. Motion carried. TAX INCREMENT President Erickson introduced for discussion Item 4, Presentation by Item 4 Springsted, Inc. of Cash Flow Analysis Regarding the City's Tax Increment Districts. Mr. Donahue, City Manager, stated the EDA had requested a financial analysis of the City's tax increment districts. The reason for the analysis was to review the funds of the seven districts and determine whether there is sufficient excess increment to be utilized for the development of a community center and also for housing development in the City. Also questioned was whether the increment could fund the maintenance and operations of a community center. An internal analysis was conducted which showed that there was excess funds. An external consultant, Springsted, was retained to review the finances and support staff's findings. Mr. Donahue stated the Council's policy direction to staff was to determine whether financing is feasible and · to find revenue sources that did not utilize funds from the general taxes. Commissioner Enck questioned the estimated cost of the center. Mr. Donahue stated the projected construction cost would be approximately 3.5 million dollars with an additional 500 thousand dollars for soft costs. Mr. Bob Thistle, Springsted, Inc., was recognized. He stated the request from Springsted contained three items: 1 ) review and verify the cash flow analyses done by the City; 2) see if the funds on hand would be sufficient to meet the capital needs of. the program; and 3) ways to provide funds to operate a facility with the assumption that a general levy will not be used. The cash flow analysis confirmed the numbers prepared by City Staff. Based on today's current obligations and assuming that no additional projects would be initiated, there is approximately 5 million dollars in the fund balance for combined tax increment projects. The fund balance would grow to 18 million dollars by the year 2004. From a cash on hand standpoint, the City is in a positive position. For purposes of this study, New Hope EDA June 13, 1994 Page 1 the projection was to 2004 which is when the last bond issue closes Councilmember Williamson questioned the following statement conta in the report: "Current law would require such cash balances t( redistributed once the balance is sufficient to pay the respective service and if no additional projects are implemented." Mr. Thistle stated at some time as cash balances accumulate, an au~ or bond counsel will begin to ask whether the City has projects or use the funds. If the answer is yes we have projects then the cash continue to accumulate and be used for the projects. If no project., identified, the funds must be redistributed between the City, County School District. He continued by stating based on an estimated cost of approximate[ million for the community center, there are three primary funding op' to finance the construction: 1) cash on hand (pay as you go); 2) 3- construction bond; 3) 10-year note. He stated the advantage of the as you go method is that it is the lowest cost; however, a disadvanta that it reduces fund balances immediately. The opposite is true for e of the bond issues. He explained the projected fund balances an¢ · interest cost for each scenario: Projected Net 2004 Ending Interest Fund Balance Cost Current Status $17,896,004 -- PAYG 12,442,841 $1,453,163 3-year Bond 12,098,857 1,797,147 10-year Bond 11,663,387 2,232,617 He noted the most economical method of financing the capital constru, project would be the pay as you go method. Mr. Thistle stated based on preliminary numbers prepared by the City operating costs shortfall from the proposed community center wi approximately $150,000 per year. Since the traditional approa¢ raising the local levy to cover such facilities is not a viable option, least not the preferred option, Springsted has been asked to identify, funding options for the operation of the proposed new community ce He stated it is clear that the facility will not be self supporting as it ~ have to charge exorbitant fees to meet the operational cost. The City is allowed to capture up to 10% of the captured tax incre annually to cover administrative and other incidental costs associated the operation of the tax increment district. The City is currently capt a full 10% or $161,000 in administrative fees. However, the City v have to obtain another funding source to meet the current usage fc funds. He stated the third approach is that the City could begin a proce redistributing excess tax increment revenues to the various t, jurisdictions. Based on a $150,000 contribution to the City in th~ year, this would still allow building the facility and maintaining a suffi cash flow balance in the tax increment fund balances. As the dolla~ New Hope EDA June 13, Page 2 returned to the various taxing ~jur sdictions, the City Council could choose t° Use the $150,000 each year to coVer the operating cost of the facility. Using pay 1994 tax rates, $150,000 would be distributed to the City; $418,000 redistributed to the School District, and $243,000 redistributed to Hennepin County. He mentioned a proposed law change which could impact the school district's contribution to tax increment revenue. The cost to the state to implement the program may discourage this change. In conclusion, Mr. Thistle stated it is feasible for the City to construct and operate a community center utilizing tax increment revenues for construction and redistributing "excess" tax increment funds to meet the projected annual operating cost deficit. He advised the only caution is that there are other issues to consider such as unknown changing tax laws which may impact the funds and the project. Commissioner Enck questioned whether the net interest cost calculation of 3.5% is on the conservative side. Mr. Thistle agreed that it is probably conservative. Commissioner Enck inquired of the disadvantages of utilizing the tax increment funds. Mr. Thistle stated the major downside is that the City will be redistributing monies that it may have been able to use on a future project. No inflation was built into the projected calculations but based on the flat rate there will be a surplus of $3,707,877 in year 2004. The lowest point of surplus would be year 1996, after the construction of the facility, with a balance of $588,501. Mr. Donahue stated if the projected cost is $4 million, based on the current formula, the City would have a surplus of $928,000. Mr. Thistle noted that at some point in time such as when the districts end, there will be the need to continue operating the facility and it will be back on the tax base and will be treated as a tax levy but may not have any more impact that it is having today. Commissioner Otten questioned other qualifying projects. Mr. Thistle stated there is a substantial number of potential ways to use tax increment such as development districts, redevelopment districts, and housing programs. Mr. Donahue reported that a public hearing is scheduled for July 25, 1994, to modify the tax increment district plan. A work session was scheduled for July 11, 1994, at 6:00 p.m. to discuss the tax increment districts and address funding concerns of the proposed community center. Commissioner Enck asked staff to be prepared to address the process of New Hope EDA June 13, 1994 Page 3 replacement/depreciation as well as repairs for the proposed center. IMP. PROJECT 519 ~ President Erickson introduced for discussion Item 5, Resolution Appro Item 5 Purchase.of 6073 Louisiana Avenue North (Improvement Project 51~ At its meeting of April 25, 1994, the EDA adopted a resolution authori the acquisition the property at 6073 Louisiana and directed sta~ proceed with the purchase. The purchase agreement contains a purchase price of $17,402 which be financed with CDBG scattered site funds. The City will ass responsibility for extending Utilities to the site (approximately $16,! and construction of affordable housing. EDA RESOLUTION Commissioner Enck introduced the following resolution and move~ 94-06 adoption: "RESOLUTION APPROVING PURCHASE OF 6073 LOUIS[ Item 5 AVENUE NORTH". The motion for the adoption of the foregoing resoll was seconded by Commissioner Williamson, and upon voted t~ thereon; the following voted in favor thereof: Erickson, Otten, E Wiiliamson, Wehling; and the following voted against the same: N Absent: None; whereupon the resolution was declared duly oassed adooted, signed by the president which was attested to by the execl director. IMP. PROJECT 513 President Erickson introduced for discussion Item 6, Consideratio Item 6 Request by Broadway Village for Increased Loan Support for Comm~ Center Project, Improvement Project No. 513. Mr. Donahue stated the EDA previously agreed to support the own. Broadway Village Apartments to upgrade their property with a comm~ center building. The City agreed to loan them 50% of the develop~ costs by using surplus tax increment funds generated by the ne Anthony James property with paybaCk concluding in year 2003. He stated the project has encountered problems due to the storm s, easement running just outside the current building which houses the I etc. He stated current city policy does not allow building a stru~ above a pipe. This necessitates moving the design and building a wall between the old and new building. The added cost will be approxim $28,000. Mr. Donahue stated the City would like to televise the storm sew, determine its condition. Staff would like assurance that it has a rema minimum projected life of 30 years. Commissioner Enck inquired of the responsible party should any s sewer problems arise which would necessitate removal of the walkv Mr. Steve Sondrall, City Attorney, stated it would be Broadway Vilh responsibility to repair the walkway unless there was contradi. language contained in the easement document. Mr. Paul Brewer was recognized and stated they were unaware o easement when the plan was designed. He relayed the op considered: 1 ) moving the storm sewer, 2) obtaining the City's permi New Hope EDA June 13, ' Page 4 to build on top of the easement, or 3) redesign the building leaving the easement area 0peh bY bUitding~a Wall~Way. He explained how the buildings will be linked together similar to a skyway. The estimated cost is $28,000. The EDA agreed to postpone any decision until the condition of the pipe is known. MOTION Motion by Commissioner Enck, seconded by Commissioner Otten, to table Item 6 consideration of request by Broadway Village until the June 27, 1994, EDA Meeting. All present voted in favor. Motion carried. 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 7:55 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA June 13, 1994 Page 5  EDA REQUEST FOR ACTION originating Department Approved for Agenda Agenda Section City Manager EDA  6-27-94 Kirk McDonald Item No. By: Management Assistant By: 4 RESOLUTION ESTABLISHING THE ECONOMIC DEVELOPMENT AUTHORITY AS A NEIGHBORHOOD LAND TRUST TO ACT AS AUTHORIZED BY MINN. STAT. §§462A.30 AND 462A.31 The City Attorney has prepared the attached resolution establishing the Economic Development Authority as a Neighborhood Land Trust, which is required by Minn. Stat. in order for the EDA to acquire loan fund proceeds from the Minnesota Housing Finance Agency through its Publicly Owned Neighborhood Land Trust Program. The resolution establishes the EDA as a Land Trust for the specific purpose of assisting in the development of 5009 Winnetka with specially designed twin homes for disabled individuals or families. The City is working with the CO-OP Northwest Community Revitalization Corporation to develop this property, with CO-OP Northwest developing and marketing the twin homes to qualifying disabled low and moderate income individuals. The EDA, acting as a Land Trust, will hold the title to the property and enter into a 99 year lease with the buyers of the property. This arrangement will promote the public purpose of the Land Trust statute by preserving the affordability of housing on the property, as the buyers of the twin home units will not be required to purchase the underlying property, thereby reducing the cost of the development and the ultimate purchase price. Staff recommends approval of the resolution. / Review: Administration: Finance: RFA-O01 EDA RESOLUTION NO, 94- A RESOLUTION ESTABLISHING THE ECONOMIC DEVELOPMENT AUTHORTTY AS A NEIGHBORHOOD LAND TRUST TO ACT AS AUTHORIZED BY MINN. STAT. §§462A.30 AND 4§2A.31 WHEREAS, the Economic Deve]opment Authority in and for City of New Hope (hereafter EDA) was duly established by the Hope City Council by adoption of the Council's March 27, 1 enab]in9 Resolution No. 89-64 authorized by Minn. Stat. §§469. through 469.108, and WHEREAS, the EDA is desirous of establishing itself a: "Neighborhood Land Trust" as defined by Minn. Stat. §462A.30, su 8, and WHEREAS, the EDA has the authority to establish itself a Neighborhood Land Trust in that the EDA is a qualifying City said term is defined by Minn. Stat. §§462A.03., subd. 21 462C.02, subd. 6, and WHEREAS, the EDA has before it a project to construc' specially designed twin home to suit the needs of physica handicapped people of low and moderate income on rea] prope located in the City of New Hope at 5009 Winnetka Avenue Nc legally described as follows: The South 150 feet of the North 330 feet of the East feet of the Southeast ¼ of the Northeast ¼, except rc of Section 7, Township 1t8, Range 21, and WHEREAS, said project would promote the statutory purpose[ the law governing neighborhood land trusts as follows: 1. the EDA would acquire, hold and lease the land puts( to a ground lease approved by the Minnesota Hou[ Finance Agency; 2. the EDA would enter into a development agreement wi1 CO-OP Northwest Community Revitalization Corporatior facilitate the construction by CO-OP Northwest of specially designed twin home; 3. CO-OP Northwest would construct and market the twin t to qualifying physically handicapped individuals families of low and moderate income; 4. the EDA would enter into a ground lease with the qualified buyer or buyers of the twin home pursuant to the development agreement with CO-OP Northwest, and WHEREAS, to acquire the land necessary to successfully complete this project, it is necessary to receive funding from the Minnesota Housing Finance Agency through its Publicly Owned Neighborhood Land Trust Program in an amount not to exceed $5O,OOO.OO. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope as follows: 1. That the Economic Development Authority in and for the City of New Hope hereby determines to act as a Neighborhood Land Trust with all the powers and duties as set out in Minn. Stat. §462A.31, subds. 1 through 5 and that said entity shall be known as the New Hope Land Trust. 2. That the New Hope Land Trust acting as a publicly owned neighborhood land trust shall acquire the property at 5009 Winnetka Avenue North as legally described above for the purpose of holding and leasing said property to facilitate its development with specially designed twin homes for physically handicapped individuals or families of low and moderate income. 3. That the New Hope Land Trust shall enter into a development agreement, as approved by the New Hope City Attorney, with CO-OP Northwest Community Revitalization Corporation for the purpose of facilitating development of the property with specially designed twin homes for the physically handicapped. 4. That the Executive Director of the Economic Development Authority, and his staff, shall take all appropriate steps necessary to obtain loan funds, not to exceed $50,000.00, to acquire the property at 5009 Winnetka Avenue North through the Minnesota Housing Finance Agency's Publicly Owned Neighborhood Land Trust Program and the Economic Development Authority further ratifies and approves all actions taken by the Executive Director and his staff prior to the date of this resolution to acquire the land trust program loan funds. Adopted by the Economic Development Authority in and for City of New Hope this day of , 1994. Edw. J. Erickson, Chairman Attest · Daniel J. Donahue, Executive Director JUN-~2-94 NED t0:45 P, 02/06, Ed~rgh 8525 ~brOok Crossing Sui~ ~203 Brook]~ Park, ~nneso~ 55443 June 22, 1994 Mr. Kirk McDonald Manage. merit Assistant City of New Hope 4401 X¥10n Avenue North New Hope, ,MN 5542a RE: Minnesota Hot, sing Finance Agency Neighborhood Land Trust Program Our File No. 99.11110 Dear Kirk: Please find enclosed a proposed EDA Resolution Establishing the Economic OeveloDment Authorify as a Neighborhood'L~nd Trust. This Resolution is required by Min,.n. Stat. §462A.31 (6). By establishing the EDA as a Neighborhood Land Trust we will then be able to acquire loan fund proceeds from the Minnesota HOUsing Finance Agency through its publicly owned Neighborhood Land Tru.~t Pro,Ir'mm, The en01osed Resolution establishes the EDA as a Land Trust for the specific purpose of a~oisting in the development of 500~ W~nnetka Avenue North with ~pe~ially designed twin homes for physically handicapped individuals or families. As you know, we are .working with CO-OP Nor:hwest Community Revitalization Cor'poration ~o develop this property. Ba.~ica]ly, CO-OP NoF1;hwest wi]] act as the developer and wi]3 market the twin homes to qualify{ng phy-~ically hand,capped ind'i¥idu:ls of low and moderate income ss requi red by the e~abl ing statute. The EPA ectin~ as ~he Land Trust wil3 hold the fee t~t~e to the property and agree to enter into agg year lease with the ultimate buyers of the property. Thio arrangement wil~ promote the public purpose of the L~nd Tru~l' statute by preserving the affordability of housing on the property. ~1 other words, the buyer~ of the twin home units wi1] not be required to purchase the underlying real property, thereby reducin~ the cost cT development and the ultimate purchase price. ,)'UN-22-94 ~ED 10:46 Mr. Kirk McDonald June 22~ 1994 Page 2 Contact me if you have any ques±ion$ regarding this Resolutic the program. Very truly yours, 8revert A, Sondrall slw2 Enclosures cc: Daniel J. Donahue (w/eric) Val~rie Leone (w/enc)  EDA II REQUF.~T FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA 6-27-93 Kirk McDonald i ] Item No. By: Management Assistant By:{1/ 5 / RESOLUTION ESTABLISHING DEVELOPMENT RELATIONSHIP WITH CO-OP NORTHWEST COMMUNITY REVITALIZATION CORPORATION TO CONSTRUCT SPECIALLY DESIGNED TWIN HOMES AT 5009 WINNEKTA AVENUE NORTH The enclosed resolution, drafted by the City Attorney, establishes the development relationship between the EDA and the CO-OP Northwest Community Revitalization Corporation for the construction of specially designed twin homes at 5009 Winnetka Avenue North. Staff recommends approval of the resolution. Review: Administration: Finance: RFA-O01 ~ Project Activity: discussion draft 6/15/94 The construction of two new single family home, built to a handicapped accessible standard, at 5009 Winenka Street in New Hope. Participants Responsible: The participants responsible are the City of New Hope, and the Community Revitalization Corporation (CRC). Please refer to attached memorandum whict was previously submitted for greater detail on how the city and the CRC will share these responsibilities. Plan for Marketing the Units Refer to the CRC Marketing Plan to be reviewed June 15, 1994. This will involv newspaper advertisements, notices at City Hall, notices at local social agencies, Since this is a special interest homeowner opportunity, notices have also been sent to organizations that deal with handicapped persons. Objective screening applicants, and ranking of those applicants will be done by Thompson Associa~ Income Level for Participants Below 80% of median. With the use of MHFA funds, the family income might b, below 50% of the 1992 median family income for a family of 4. Budget See attached budget, which was previously submitted. The EDA is contributing $37,545 in land value, past costs, and staff costs. The CRC is contributing a zero interest second mortgage of $15,000 plus $1,9:20 in other costs. First mortgage funds are readily available. Schedule County Approval-June, 1994 Clear Environmental-July, 1994 Screen Homeowners/Select builder-July-August, 1994 Start Construction-August-September, 1994 Finish Construction-December, 1994 County Provision of Funds-January, 1995 Estimated Market Value of Improved Property Note, as indicated on attached project budget, this is anticipated to be $87,000+. We Agree to Proceed on The Above Basis: CRC Chair New Hope EDA CRC Director New Hope City Manager To: Steve Sondrell DRAFT From: Gary Stout, Director Community Revitalization Corporation Re: Agreement between CRC and New Hope Date: May 13, 1994 Following is the outline of how the CRC and the City may interact. The CRC Board has previously acted (on March __) and authorized me to enter into discussions with the City fora project that would occur in the following general manner. This approach stresses: · simplicity · clear accountability · maximum use of private sector, without excessive profits being generated, Attached is a simple financial "guestimate" of the total project, cost. You will note that there is a $1~,000/unit CRC provision of HOME funding. This is subject to the normal requirements of the HOME program, primarily dealing with affordability and a moderate income family. The budget is a useless exercise until we get: 1. an owner, and 2. a building plan that owner desires, and 3. some cost estimates on the hard and soft costs of that building plan. However, for purposes of the MHFA grant, all you need to do is have evidence of commitment of funds to the project. We have a preliminary commitment, in the amount of $15,000/unit and I will do the budget ;(with whatever the totals are) later. I will get this assurance shored up at the Executive Committee meeting scheduled for next Monday (the 16th). Currently we are planning on using the funds as a second mortgage. However, if we run over budget, we can always use the money as a "write down". Hopefully that won't happen. However, it is $10,000 in either case. I have attached the definitions of "moderate income" for your information, but a family of 4 with a $40,000 income is included. The CRC's requirements should dovetail quite well with the MHFA requirements. DRAFT Letter Don Donahue May 19, 199 City Mgr. New Hope Re: Letter of Commitment Dear Mr. Donahue At it's meeting of May 16th, the Executive Committee approved the revised memorandum of understanding, committing the CRC to work with the City of New Hope in a development capacity. Our action also commits us to work with the City as a party to the Land Trust, and as a second mortgage provider~ At this point, we do not have a final budget, but we are assuming that the fini mortgage provision will be in the'range of $10,000-$20,000 per unit. We are currently indicating the use of $1$,000/unit. In the event of financial cost over runs, mortgage interest increases, etc. the CRC has the resources necessary to either increase the second mortgage, or convert some of the second mortgage funds to a grant, or both. The project was discussed at the CRC's full Board meeting of March xx, 1994. ~ that time the Board approved the proposal in concept and authorized the Executive Committee to enter into any necessary agreements. We look forward to working with you on this project; We have attached our preliminary budget for this project, and realize that th construction cost may change due to different desires of the owner, different floor plans, different finishes, etc. Sincerely yours Lawrence Winans, Chair Attachment: Preliminary draft budget. 5/9/94 Joint Development Proposal COOP NW CRC And The City of New Hope Pre-Development: City_: 1. Completes environmental clearance 2. Completes MHFA land trust documentation 3. Obtains list of potential handicapped buyers 4. Clears site CRC: 1. Produces project budget 2. Screens for Potential Builders Both~ 1. $oint Coordination Meeting: Kirk, MHFA, City Attorney, GES, perhaps Barb Hayden 2. Both: Review project policy (handicapped feasible?) 3. Both: Review for potential owners '4. Both: interview potentially interested builders 5. Both: Assure "affirmative marketing" of site. Initial Development ProceSS: CRC: Is designated as project developer by City or ED'A, and has 90 days to work with City to locate potential purchasers and builders. No formal agreements other than a resolution granting the CRC a 90 day "hunting license" on the site. CRC (in lead) and City: travel to see similar projects, obtain building plans and specs, review with City building officials, and others interested. CRC (in lead) and City: meet with potential purchasers and work out budget and other details for those individuals. CRC: works with potential purchasers to select a builder, with city participation, and city's right of veto Contract negotiated with builder by CRC, with City participation at City's option: in tho negotiations deductions made for various fees and costs, as warranted: Realtors fee, holding costs, advertising costs, architectural fees, legal fees, etc. Contract subject to redevelopment agreement being prepared and agreed to by the CRC and City. (Optional) City applies for MHFA mortgage (estimated rate in the 7.5%/30 year range) Funds reserved for 6 months of construction. City designates a bank for those funds (pick one with experience, and one who wants to do it, there is no major profit in this for them). City and CRC list concerns and needs for mutual protection. At this point, the deal, if it has come together, is known and a Redevelopment Agreement can be negotiated and completed from some known parameters. Formal and final a redevelopment agreement is prepared and signed, with aF elate participation by the builder, just prior to construction (scheduled for late Sul , 1994) D~v~lopment Res_oonsibilities: Builder-Builder arranged own interim financing (on building only) Builder-Builder builds property City-Building inspectors review progress, project quality CRC-CRC reviews progress, monitors project at least twice a week through completion City's Designated MHFA Bank-Project MHFA mortgages applied at building completion Com_uletion Builder-sells project to buyer Buyer-takes out mortgage and moves in City-has on-going oversight of land, which may be d~legated to the CRC CRC and City formally acknowledge project completion Still Required: Formal Action by CRC Executive Committee committing $1~,000/unit to the site (16th), EDA commitment of subsidy to the site. Steve--Do I need to do anything else in order to help you with the' MHFA land trust paperwork? New Hope 5/13 Comparison Sheet New Hope 85400. Uses of Funds As Proposed Acquisition $21,000 Closing Costs $1,000 Asbestos Removal $1,500 Lead Testing $0 Fees-Arch, water, sewer, etc. $0 (are water and sewer credits available?) New Construction $85,400. ($70/sq. ft. (w/garage, fees, lot dev.)*1220 sq. ft. Interim Interest $0 Closing/Legal * $2,136 (1.5% points+ $1000) Support Services $320 (4 hours at $80/hr, plus classes) Marketing $0 (perhaps 3.15% real estate fee for sale, 0% listing) 2d Mortgage Write Down $0 Administration $5,861 (about 5% of total costs) Total Uses of Funds $117,217 Sources of Funds Less Land Trust/EDA $ ($22,500) (re-contributed the $5,000 city staff time, as match) Less Home Funding ($15,000) Less 5% Downpayment ($3,986) Mortgage Amount/Unit $75,731 Total Sources of Funds $117,217 ~ Costs To Homeowner Conventional Mortgage,~-6.-4,i~5°/ $530 Assumes MHFA @ 7.5%/30 years MHFA Assistance Payment ($120) Assumption-this is based on having Iow income. 1st Year, after MHFA Payment $410 Estimated Taxes/month $120 Estimated Insurance/month $35 Total PITI/month $565 Income Required Monthly Income @ 29% $1,948 Annual Income @ 29% $23,382 A person in the lower income range has virtually no "slack" to handle unexpected financial challenges of ownership. Note: this is "household income" required not just that of only one person. Loans & Land Trust Subsidy/Unit ($37,500) $0 Page 1 REQUF. T FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA Kirk McDonald ~ 6-27-94 Item No. By: Management Assistant By:7 6 MOTION APPROVING LISTING AGREEMENT WITH THORPE BROS., INC. TO MARKET CITY-OWNED PROPERTY AT 7300 42ND AVENUE NORTH Staff is requesting that the EDA consider entering into an agreement with Thorpe Bros., Inc. to list and market the City-owned property at 7300 42nd Avenue North (42nd and Nevada Avenues). The gasoline contamination on the site has been cleaned up and the City has received its reimbursement from the Petro Fund. The ground water contamination problem is under control and the "responsible party", Electronic Industries, has filed an acceptable clean-up plan with the MPCA. Under the agreement, Thorpe would market the property for the City through various listings, answer all calls on the property, and erect a sign on the property advertising it for sale. The agreement would be in effect for one year and the only payment made to Thorpe would be an 8% commission upon the sale of the property. Thorpe would research comparable listings and advise the City what they feel the property value is and reach an agreement with the City on a' sale price. Although the 65,000 square foot site is zoned B-4, Community Business District, and could accommodate a number of uses, the City could give Thorpe specific direction as to the type - of business we would like to see on the site. Also, if the EDA approves this agreement, staff would request to seek quotes to have the property surveyed and platted so that the exact size can be verified. MOTION B SECOND BY _ ~ _. _ Review: .administration: Finance: RFA-O01 ~ MARKETING PROPOSAL for City of New Hope Presented by: ULY Thompson, CIPS June 24, 1994 Thorpe Bros., Inc. - Real Estate Since 1885 Thorpe Bros., Inc. 8085 Wayzata Blvd. Minneapolis, MN 55426 Tel: (612) 545-1111 Fax: (612) 545-8986 June 24, 1994 Mr. Kirk McDonald City of New Hope Development Coordinator 4401 Xylon Avenue North New Hope, MN 55428 Dear Mr. McDonald: I am pleased to present this proposal and Exclusive Listing Agreement, regarding the city- owned property on the northwest comer of Rockford Road and Nevada Avenue. This site offers some unique challenges, but it also offers an excellent location for certain business uses. Thorpe Bros., Inc., looks forward to the opportunity to market this property, with the Cooperation and assistance of the city. Your City Manager, Dan Donahue, seemed very pleasant to deal with, and I am anxious to work with you both. If you have any questions regarding this proposal, please feel free to call me. My direct number is 797-1413. Sincerely, Uly Thompson, CIPS UT:cid/UT-1 Your Partner in Real Estate Services Worldwide Mission Thorpe Bros., Inc. is committed to being a full service commercial real es company which delivers premium quality services in a highly professional max to commercial real estate owners, lenders and tenants where the quality of servi~ driven by an organizational culture of high energy, enthusiasm and competence being supported by strong leadership and management decisions. History Thorpe Bros., Inc. has been a Twin Cities leading edge commercial real es brokerage organization since its inception over a century ago. The people of Thc Bros. believe in a value system that transcends decades and allows us to build business with an extremely long-term perspective; a work ethic that embodies drive of the founding partners and fosters a belief in the simple principle of dl the job right, fight from the start. Complete and thorough approaches are expe from every individual that represents the Thorpe name. International Reach Based on a long history of successful assignments and a reputation of integrity high business ethics, the company has gained the coveted New America Netv affiliation. With invitation for membership limited to only the most outstan~ regional brokerage firms, the Network provides powerful national international real estate marketing resources that enable us to service over markets worldwide. Service Thorpe Bros., Inc. is comprised of experienced, dedicated commercial real e~ specialists who exemplify professional excellence in property management, ~ management, acquisition, disposition, investment sale, ~tenant/bt representation, and property leasing in each of their individual product are~ expertise. These product areas include: eOffice eRetail ~Industrial ~Vacant Land elnvestment Propertii Combining highly skilled sales personnel with the latest automation tools resu the creation of practical marketing plans which are well structured and pro[: focused. Our approach is to combine the "Art of Selling" with the "Scien~: Marketing" while targeting specific results. Results A spedfic marketing plan for a property is comprised of individual mark~ programs which address market research, prospect generation, point of activities, strategies and feedback. Each program is prioritized, given starting completion dates and assigned within the organization for necessary action. example of our focused approach has proven to be consistent method of achiE superior results. Thorpe Bros., Inc. has completed hundreds of such plans ove years and is constantly developing new and innovative methods to service client's commercial real estate needs. THORPE'BROS.t INC. HISTORY 1885 1885: Natives of Red Wing Minnesota, brothers Samuel and James Thorpe Samuel & James Thorpe established Thorpe Bros., Inc. in Minneapolis. The city was a mere 14 years old establish the company with only 129,000 residents. ":'":~'-':~'~-~-::'"-':':"~:~:~:":'-?~:~ 1900: Samuel Thorpe took reins of the entire business as brother James moved 1900 ~ to Denver; Thorpe moved to larger offices in one of its own downtown develop- ments, the Andrus Building. The Andrus Building was the first major downtown ISamuel takes over the company building developed by Thorpe Bros. Around the same time Samuel Thorpe .................. ==~'Y~[~ became president of the National Board of Realtors. I 1910 ~] 1910: The Plymouth building, completed by Thorpe, was the largest reinforced ~ ~~f ...... [~ concrete office and merchandising building in the world. Built ara cost of one .,~.~, ...... ~ ~.__~_~__~ ..... ~___ million dollars, it contained 208,000 square feet of office space. City growth led to  a demand for investment capital, and the company responded to this need by I 1913 ~ bringing millions of dollars of outside capital to Minneapolis. The company not Adoption of National Real [] only financed downtown projects, but channeled money and energy into home Estate Code of .............. Ethics ~ construction as well, shaping some of Minneapolis' earliest neighborhoods. ~.~ 1913: Thorpe Bros., Inc. played an instrumental role in the adoption of the first national real estate code of ethics. 1922: One of Thorpe Bros. major residential accomplishments, the Edina Coun- 1922 Edina ~ountnj District b~gin~j~ try Club District, was begun. Thorpe Bros. planned and constructed a 300-acre, --'~~'"~:-~---~-- ..... 585-home site development. It still stands as one of the city's finest communities, and led to similar developments in Illinois, Florida and California. 1950 1950: Thorpe Bros. became involved in what was to be the most daring and Commissioned to acquire land influential real estate venture in the country. In the 1950s, the Dayton Company for Southdale Mall commissioned Thorpe Bros. to acquire the land needed for the first-of-its-kind project, the fully enclosed Southdale shopping mall on which hundreds of similar 1968 developments have since been patterned. The tremendous success of the Southdale Focus on sales and Mall project led to a second mall, Brookdale, planned and developed with the assistance of Thorpe Bros. property management I968: In 1968 Thorpe Bros. reorganized and streamlined the company's opera- tions by selling their large mortgage and insurance divisions, allowing the com- 1981 pany to focus its energy and expertise on real estate sales and property manage- Unite ~ New America Network ment. 1981: Thorpe Bros., Inc. became affiliated with the New America Network which is the largest commercial real estate network in the United States. The Network 1988 I enables Thorpe Bros. to offer its local clients international real estate services. Focus on commercial/ ~ 19881 The residential division of Thorpe Bros. consisting of 12 offices and 400 industrial needs agents was sold to Edina Realty in order to direct greater focus and concentration ~'~'"~~ towards the Industrial, Commerdal, Retail, Investment and Property Manage- ment divisions. This proved to be an instrumental move for Thorpe Bros., as they 1992 ~i not only grew within the boundaries of Minneapolis, but throughout the world Intensified Focus md SpecializationI~[~ through their affiliation with the New America Network. ....... ~ -~-- 1992: Brokerage increased support staff, systems and new equipment. Depart- ments were reorganized to focus on office, retail, indUstrial and investment services. Design and Space Planning were added to round out the full array of 1993 ~ services. Brokerage and Property Management added personnel, and imple- Balcken ? Liedl. Inc. ~ff'fliated ~ mented new software and computer systems.  ~ 1993: Bakken & Liedl, Inc. is a full service M.A.I. appraisal firm. They specialize in commerdal real estate evaluations and tax appeals. They moved their offices into the Thorpe Building. Form ThorpefBaumeist~r [~ I994: Thorpe Bros., Inc. increased market coverage in St. Paul by forming ~.-~._.?.:-'.,~,~.,:--.~?~ Thorpe/Baumeister, a full service commerdal real estate firm based in St. Paul. Thorpe Bros., Inc. ~ THORPE BROS., INC. CLIENTELE LIST · Deluxe Corporation · Control Data Corp. · T.S. Denison Co. · Mail Dispatch, Inc. · Kurtz Oil Co. · Schmitt Music Co. · Parten Machinery Company · Prudential Life Insurance Co. · R.L. Johnson Investment Co. · I.J. Enterprises, Inc. · Phillips Petroleum Co. · Modern Merchandising · Nordquist Sign Company · Watt/Peterson, Inc. · Minnesota Farmers Union · CDR Investments · Opus Corporation · FBS Financ.ial, Inc. · Benson Optical · Pillsbury · Tennant Company · Sears Roebuck & Co. · New England Life Insurance Company · Crudble Steel Company · Boyer Ford · Valspar Corporation · Mid-America Bank Corporation · First National Bank of Minneapolis · Pepsi-Cola Inc. · Honeywell, Inc. · Standard Oil · Northwestern Bell · City of Minneapolis · Minneapolis Institute of Arts · Digital Equipment Corp. · Hennepin County · Colwell Press · Alcoa Aluminum · Mutual of Omaha ... And many others. Table of Contents A. Opinion of Value and Comparable Transactions B. Marketing Plan C. Photos D. Resume of Uly Thompson Thorpe Bros., Inc. UT-l:cld OIL ~Z Opinion of Value and Comparable Transactions Pricing. In researching comparable sales and listings in New Hope, I found none. The search was expanded to the neighboring communities of Plymouth, Brooklyn Park and Golden Valley. Listings were found in the price range of $2.75 per square foot (PSF) to $4.25 PSF. Sales were identified from $2.39 PSF to $4.17 PSF. It is my opinion that subject property should be placed on the market at $3.90 PSF. This results in a listing price of $254,826. This is based on an area of 65,340 square feet (furnished by the city). Recommendation The dty should order a Phase I environmental report, covering both contamination issues. This will be required by any buyer, and closing would be expedited, if this information is available. A certified property survey is also needed, in order to determine the exact size and legal description of subject property. · Thorpe Bros., Inc. Marketing Plan The following sales tools would be put in place within 30 days after the acceptance b city of the exclusive listing agreement: Signage: A 4 x 8 sign will be prepared and installed on the property. This will identify Thorpe Bros., Inc. as the listing office, promin~ displaying our phone number and some clear indication regardin fact that the property is owned by the City of New Hope. Direct Mail: A colored flyer will be prepared and target-mailed to other brc and potential buyers. Commercial Multiple Listing: The listing will be placed in the Commercial/Industrial Exch~ Book, which is issued monthly by the Regional Multiple Li,, Service, Inc. This book is distributed to most of the commercial estate professionals in the Twin Cities area. Following the above listed items being accomplished, direct calls will be made to pote buyers, as we zero in on the uses preferred by the City. Based on my understanding of our conversation on Tuesday, June 21st, the City w, prefer that the property not be used for either fast-food or auto-related businesses. discussed a sit-down restaurant, medical offices, or selected retail businesses. important that we have a dear understanding on this, at least with some guidelines t the city. Thorpe Bros., Inc. Looking East from Railroad Trestle Looking Northeast from Railroad Trestle Thorpe Bros., Inc. Looking Northwest from South side of Rockford Road Looking West along North side of Rockford Road Thorpe Bros., Inc. - CITY OF NEW HOPE LOCATION Region M~o I Distance from Minneapolis/St. Paul 7 miles NW' Distance from Duluth 160 ndlee SW Senate district 46 House district 46A, 46B POPULATION Area 1960 Census 1970 Census 1880 Census 1990 Census 1991 Estimate City 3,552 23,180 23,087 21,853 21,715 County 842,854 960,080 941,411 1,032,431 1 ,C)39,099 MSA' 1,535,297 1,874,612 1,965,873 2, 464,124 INDUSTRY MajOr Eml:~Oyel. I Produ~:ta/Servk:es Employeet Union % In Union North Ridge C~e Centre, Nursing Ca~e 900 . Lakeside Industrlel Advertising Signs 350 - . Uberty Diversified Ind. Packaging 250 . St. Theresa Care Center Nursing Care 200 . Ben Franklin/Wm'ehoua4 Variety Store Distt. 150 AFL/CIO 70 Process Diapl&yl Printing 150 C~eamette Company Food Processing 130 AFL/CIO 90 Keelor Steel and Aluminum C4 Metal Senace Cent~ 120 AFL/CIO 65 No,die Pre~/Packaging, ino. Commercial Printing 111 Utho SW' 70 Peddoek I.atxxatorl~ Phmutio~ ~0 . W~ P~ Hi.T~h Printing 75 . EMPLOYMENT* F. mpleymeat Data Manufacturing Oeeui~tlonl In Area Type of Numb~ Occupation Median Wage Employment Employed or Job Tiffs per Hour Manufacturing 257,900 Machinist $16.19 Non-Manufacturing 1,137,700 Tool ancl Die Maker 16.04 Welder & Cutter 12.83 Total Employment 1,347,900 Punching Machine Setter, Oper. 12.27 Available in labor Force 1,410,300 Assembler, Exc. Electronic 12.25 Annual Average Unemployment 4.4% Secretary, Exo. Legal/Medical 10.49 Combination Machine Tool Oper. 10.35 Electronic Assembler 10.23 Bookkeeping & Accounting 9.88 The 1,347,~]O figure II ~ ~ ~ & ~ ~ (Mpll./ea. Paul M.~A~. Source ~ Occuplltonal ~ 1~2 Minnel~a ~ New Hope - 2 TRANSPORTATION RAIL AIR Rail Lines Soo Une Nrpo~t 8* Frequency Dally switch sil~J~o Distance to Airport 10 miles Reciprocal ~vitchiflg ne Air Freight yea Piggy-Back SwvJce o~ nuin line Distance to Froi~)ht tO miles Distsflce to Milan Uno no i P~nger Service in SL Psul Commerciot yes I C~lartsr yes TRUCK Jet yes Truck tines 24 ho~lqumlored In melts Nearest Minneapolis/St. P&u ·rea; over 100 fl;.~ class Intarna~onot" carriers* Airlines 10 Nat'l/Int'l.; 8 local Terminals 60* regional; 10 air carg~ er varies* BUS Navigational Aids ell FAA aids for inter Bus Service Greyhound, Jefferson* airport* Intra City Bus MTC Runway 10,000 foot concrete Distance to CflD - WATER Navigable Water no HIGHWAYS Depth - Interstate Highways 1/2 mile to 1-94 and Federal Highways - State Highways #100, #55, #52, #1; Load Limits 9 tons COMMERCIAL/INDUSTRIAL TAXES Municipal Pate 22.358% I Minnesota ro°t estate taxes are based on market value 'ued County Pate 35.839% I to be tho price that a willing buyer would pay to s willin in s School Pate 61.807% free emi<et. Tm( cap~city times the tax rate equals pro xes. Miscellansoua Pate 7.235% Tax capacity ia tho value of t~o property under $100,00C Total Pate 127.239% plus any votuo over $100,000 times 4.7%. GOVERNMENT Structure Employment O~ganlz&tiofl maflige~ oourmll Regular Employees Pat Time Emp Pafuce Sewioe ixiveto Fire Depatment I 33 (volun ~ Phm yee Police 26 10 (volun Budget $14,097~90 Sheriff 0 0 Ind.a~al.;~.,~ Approved by P~mbq Comrades/Cay C~ty S0 3S UTIUTIES WATER SERVICE SEWER SERVICE Municipal Wires ~ourol river Sew~ Service Melzopolitun Waste .I ~omo~~ 33,000,0~ g'd Gommi~ion Pumping Capacity - Capacity of Troatemom I~ant - Total Tapw&t~ ~ ~0 ~ Average Demand - Average Demand 3,733,191 gal/day Peak Demand - Peak Demand 13,000,000 gal/day Sewer Use Charge $1.73 per 1,000 gall er Industrial Water Pate $4~.5 first 1,000 gallons; first 1,000 gallons ('. rst $1 ~.8/1,000 gallon~ alter first tttouaand). 1,000 gallons. Storage capacity: New Hope, Crystal TELEPHONE SERVICE and Gofde. Valley combined. Telephone Service U S Welt Communi ELECTRIC POWER GAS SERVICE Bect~c Utility Northern Stoto~ Power Gas Service Minnega~co Telephone 612/330-6255 Telephone 612/372-4859 ,:~ New Hope. COMMUNITY SERVICES ACCOMMODATIONS* BANKING/FINANCE Hotels . Financial Institutions Rooms - ~1Deposit~ Marquette Bank New Hop; Motels . Norwaet; Park National; Motel Unite - 97 r. ommerlcal banks; 70 ~4vlngs & team branch ~h~ces, MEDICAL SERVICES 5 home offices* Hospital Beds 8,984' Nursing Home Beds 18,784' MAJL SERVICE EX~ctor~ 5,525' Past Office (Class) first Oenfist~ 1,674e Expres.~ M~I Service yaa Nea~®~t Hospital North MamMial Mecllcal Car.; 30 hospitala I~ metro are~ RETAIL SALF. S Retail Sales in County $9,910,592.,$17 (1988) PLACES OF WORSHIP $10,626,636,574 (1989) Protestant 9 St 0,972,769,785 (1990) Catholic 2 $12,420,355,000 (1991 ~L) Jewish 0 Retail Selea tn City $69,149,829 (1990) Other 1 Per Capita Income $23,705 (1990) MEDIA/MEETING SPACE COMMUNITY ACTIVITIES Newspapers - Daily 3* Facilifi®s/Fe~tivaie New Hope Duk Duk Daze, MN Weakly 71' 7.aa, Guthrla, MN Orchestra, Radio Stations - AM 24* Aquatennlal, Winter Carnival, FM 20* Mpl~. Inat. of ~ Walker Art Meeting Facilities 4 Center, State Fair, Ora'way Capacity of i.~gest 9,500, 2,000, 2,000 Mualo Theatre and major profeeatenal eport~ Service C~ganlzaflons Uon~, Jayoaaa, Jaycee Women, Rotary, Chamber of Commar~e, New Hope Women of Today. Ate4 ~ * ' 220 h~Me/molM. ~ 24,00~ m~t~* EDUCATION F~c~ mtd Faeilitlee Profite of ~hoote Pupil to Teacher Rat~oL. - ' Elementary 17.2/1 NumbM Enrollment Grades Included High ~ 172/1 High School Gradu&tea Elementary 4 6,985 K-6 / Going to College - . ./' College Graduatea-- Junior High I 3,110 7-9 Near, st Technloal College ,~x Mell~ ~ TC'I Senior High 1 3,727 10-12 TC Spec~ty Wide vasty of couture, contact =lay M TC fM Iiltlnga Pamohial 0 0 0 Distance to Technic~ College - Private 0 0 0 Neuest Commmunity College Hoflh HMutepin Community Distance to Community College .$ mitel Nearest ~ 16 eollege~ & univar~ltle~ CLIMATE Facte and Figure~ Coldest/Hottest Month~ Number of D~ys BetweM~ Coldest Montll Hottest Month Killing Froite 167 Month J~num'y July Number of Day~ .~we gO deg. 14 Mean I:~ity Maximum (deg. F) 22 83 Average Annual Snowfall 42 In~he~ Mean Daily Minimum (deg. F) 2 60 Average Annual Percipitetion 24 inchea New Hope * ,I INDUSTRIAL SITES Site Science Indu~y Oante~ Site Hoyt Induetrlai Site ~xea Available 5 A~re~ Available 21 Own~ Ro~mmod Coq~ Owner ~ed Hoyt Option Held by Develop. Group no Option Held by Develop. Group no Site 7..m~ed yea Site Zoned yea In City Umlt~ ye~ in City Umits yea ~en4c# .,~ Site rail ~ervioea it Site eMct~k)ity ele~iclty g~l trelted w&ter txe~ted wirer LOCATIONAL SERVICES ~ Development Oorporation - Chamber of Commerce Yee Contact~ Larry Dowell Daniel J. Don~hue, City Manager Kirk McDonald TwlnW#t Chamber of CQmmen:e City of New Hope Management Asslst~t 10550 W&y"z,*ti BQuleve(d .&401 Xylon Avenue No~th City of New Hope Woodside Off'~e Pmlc, Suite 2 New Hope, MN 55428 4401 Xylon Avenue North Minnetonke, MN 55343 612/531-5112 New Hope, MN 55428 612/540-0234 612/531-5119 Remarks Additional Sitea: 38th & Wennedcl, 2.1 I~ea, owned by Don Harvey. Scattered Industrial and commercial sitea In several i~ea: ss than 60 total loxes still open In oity. ¥93 Minnesota Department of Trade & Economic Development Business Development and Analysis Division 500 Metro Square 121 7th Place East St. Paul, MN 55101-2146 USA (612) 296-5022 (soo) 7 858 4.13, 4.131, 4.132, 4.133 4.13 #B-4" CO~_~UNITY BUSINESS DISTRICT 4.1~1 Purpose. The purpose of the "B-4# Co~ununity Business District is to provide for the establishment of commercial and service activities which draw from and serve customers from the entire co~u~unity or sub- region. 4.132 Permitted' Uses~ B-4. The following are permitted uses in a #B-4" District: -- (1) Less Intensive Use Districts. Ail permitted uses in "B-l" 'and "B- 2". (2) Antique Shops (3) Art/School Supplies~ Book~ Office Supplies~ Stationery Stores (4) Bic~lcle Sales/Repair (5) Candy, Ice Cream~ Ice Milk~ Popcorn~ Nuts~ Frozen Desserts~ Packaged Snacks~ Soft Drinks (6) Carpet~ Rugs and Tile and Other Floor Coverings (7) Coin and Philatelic Stores (8) Con=~ercial and Professional Offices (9) CoDy and Printing Service (10) Costume and Clothes Rental (11) Office Equipment Stores * (12) Enclosed Boat and Marine Sales *(13) Dry Cleaning Including Plant Accessory heretofore~ Pressing and ReDairing (14) Drug Store ( 15 ) EmDloyment Agencies (16) Florist Shop (17) Furniture Stores (18) Furriers when Conducted only for Retail Trade~ on Premises * ( 19 ) Garden Novelty Stores (20) Gift or Novelty Stores (21) Hobby Store (22) Insurance Sales ( 23 ) Locksmith (24) Meat Market but Not Including Locker Storage (25) Paint and Wallpaper S ~.~ es (26) Plumbing~ Television~ 9dio~ Electrical Sales and Such Repair *(27) Theaters~ not Outdoor t ire-In TyDe (28) To~ Stores * (29) Custom Manufacturing and Repair ( 30 ) Tailor Shops (31) Jewelry Shops and Other Similar Uses (32) Travel Bureaus~ Transportation~ Ticket Offices . (33) Variet~ Storest 5/10 Cent Storesr Stores of Similar Nature ( 34 ) Wearinq Apparel · (35) Bankst Savings/Loans~ Credit Unions~ Other Financial Institutions * (36) Public Garage/Parking Ramp (37) Record Sho~) (38). Real ~.state Sales (39J BUildin~ Material Sales of Retail Nature in Totally Enclosed Building (40) Fabric Stores (41) Ceuaera Photo ra hic Su lies ( 42 ) Restaurant (43) Off-Sale Liquor Stores ( 44 ) Medical (45) Sporting Goods Stores (46) Pet Shops (47) Hardware Stores 4.133 Permitted Accessory Uses~ B-4. The following are permitted accessory uses in a #B-4' District: (1) Less Intensive Use District. All permitted accessory uses in a "8-3" District. 4-70 072684 4.134 Conditional UseS= B-4. The follow£ng are conditional uses in a Districts (Requires a conditional use permit based upon procedures set forth in and regulated by Sect£on 4.20, and conformance where applicable, with Chapter 3, Signing). (1) Less Intensive Use District.. All conditional uses, subject to the same conditions as allowed in the B-3 Districts excluding any *B-3' c~nditional use listed as 'permitted' in (2) Planned Unit Development - Commerc£al. Commercial planned unit development as regulated by Section 4.19. (3) Training Schools. Training schools, provided that~ (a) As Principal Use. The school is operated as an adjunct of the principal use to provide training for the consumer, distributor or installer of the product, process or service which is sold, distributed or manufactured under the principal use. (b) Code Compliance. Proof of compliance with City and State li~e and safety codes is shown. (c) Parking. Adequate on-site pa=king is provided so that no customers, visitors or employees are required to park outside the existing of~-street parking areas of the business as a result of the operation of the school. ~ (4) Veterinarian Clinics. When all facilities are totally · enclosed, and procedures and construction which will comPly with the noise Regulation portion of this Code are approved by the City. (5) Deleted. (Code 072684, 85-22) 4-71 072684 (6) Commercial Recreatign ~Gili~ies. Commercial recreation, provided that: (a) Access. The site of the proposed use has direct access to an arterial street as defined in the City Code, without utilizing public streets of a lower traffic handling classification to reach the arterial street, .and (b) 'Proximity ~9 Residential. The outside perimeter of the site, as legally described is, 150 ~eet or more ~rom the boundary of a residential zoning classification, or (c) Compatibility. The primary recreation&l facilities are enclosed such that the architectural appearance and functional plan o~ the building and site shall not be so dissimilar to the existing buildings or areas as to cause impairment to property values or constitute a blighting influence. Screenino from Residential. Parking areas shall'be screened from view of residential districts and shall be curbed with continuous concrete curbs not less than six inches high above the parking lot or driveway Grade, at the curb line. (e) Access. Vehicular access points shall be limited and designed and constructed to create a minimum o~ conflict with through traffic movement. (f) Liqhtina ~hielded. All lighting shall be hooded and so directed that the light source is not visible from the right-of-way or from a residential zone or use. (g) Surfacing. The entire area other than that occupied by buildings, structures or plantings shall be surfaced with bituminous or concrete material which will control dust and drainage. The material and grading shall be subject to the approval of the City. (h) Landscaping. Landscaping shall be provided and the type o~ planting material and the number and size of plants shall Oe subject to the approval o~ the City. (Ord. 85-32) (?) Adult Uses-Princioal. Subject to the regulations of §4.039C and §4.20 of this Code. (Ord. 92-0S) 4-72. 072684 BIOGRAPHY ULY THOMPSON, CIPS LAND SPECIALIST Mr. Thompson joined Thorpe Bros., Inc. in May 1994, after spending twenty- five years in commercial real estate and land development in the Orlando, Florida area. Uly was also a licensed mortgage broker in Florida. In 1978, Uly founded Orlando International Realty, Inc., where he served as president and primary broker. From November 1992 until April 1994, Uly was head of the International Division of Atkins, Elrod & Company in Orlando. In 1982, Uly joined the International Real Estate Federation (FIABCI). That organization, based in Paris, France has several thousand members in over 50 countries. He has represented real estate buyers and owners from Germany, Netherlands, Canada, England, Jamaica, Pakistan, Australia and Taiwan. In November 1992, Uly received the CIPS designation from NAR. To qualify for the Certified International Property Specialist designation, Uly demonstrated his ability to operate in the international real estate brokerage arena, through both education and experience. Less than 200 real estate professionals have received the CIPS designation. Since November of 1993, Uly has served as an instructor for several of the approved CIPS courses. In addition to general commercial brokerage, Uly has been involved in the development of real estate: commercial, industrial and residential. Some of the national companies he has represented include: Holiday Inns, Sheraton Inns, Days Inns, Scotty's, Hardees, Western Sizzlin', Golden Corral and Guy Gannett Publishing. Lily is a member of the Minneapolis Area Association of Realtors, the Minnesota Assodation of Realtors and the International Section of NAR. · COMMERCIAL-INDUSTRIAL EXCLUSIVE LISTING AGREEMENT SALE This form approved by the Minneapolis Area Association of REALTORS®. Minneapolis Area Association of REALTORS® disclaims any liability arising out of use or misuse of this form. Date: June 27, 1994 IN CONSIDERATION OF the Agreement of Thorpe Bros.. Inc. (hereinafter referred to as "BROKER") to undertake to sell the premises hereinafter described, The Ci_ty of New Hop~ (hereinafter referred to as "SELLER") grants to BROKER the exclusive right to sell or conn"act to sell the property known as the northwest corner of Rockford Road and Nevada Avenue and legally described as (exact legal will be furnished by the Seller. based on a certified s~wv~y,) (hereinafter referred to as the "Property") for the period from the date hereof through and including June 30. 1995. for the sum of Two Hundred Fifty Four Thousand. Eight Hundred Twenty-Six and no/00 Dollars ($ $254.826.00 ) upon the following terms Cash or at any other price, terms or exchange to which SELLER may consent. NOTICE: THE COMMISSION RATE FOR THE SALE, LEASE, RENTAL OR MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL BROKER AND ITS CLIENT. SELLER'S OBLIGATIONS It is agreed that SELLER shall promptly furnish BROKER with complete information concerning any person who during the period of this Agreement makes inquiry to SELLER regarding the sale, exchange or lease of the Property. SELLER hereby agrees to furnish to Buyer an Abstract of Title, or a Registered Property Abstract, certified to date, to include proper searches covering bankruptcies and state and federal judgments and liens, and to execute or cause to be executed a deed of general warranty conveying a marketable title to the Property to the Buyer and any further documents as may be required to consummate the sale to Buyer in accordance with the terms above designated or with the terms to which SELLER may hereafter consent. SELLER hereby agrees to furnish to any Buyer, before signing an agreement to sell, a written disclosure of all known wells on the Property and further to provide Buyer at closing with a Well Disclosure Certificate or certification of no known wells. SELLER further agrees to promptly notify BROKER of any notices pertaining to the Property which are hereafter received during the term of this Agreement. It is further agreed that SELLER shall permit BROKER to erect a "For Sale" sign on the Property and to remove all other "For Sale" si~ from thc Property during the period of this Agreement. It is further agreed that SELLER shall permit BROKE~to erect a "Sold" sign on the Property for a period of 30 days following the sale or exchange of the Propex~ by BROKER. Page I · COMMISSION It is further agreed that SELLER shall pay BROKER a brokerage fee of ( 8 %) percent of the pr r which the Property is sold or exchanged, upon occurrence of any of the following conditions: 1. The sale, contract for sale, exchange, or conveyance of the Property during the period of this ~ nent by 'BROKER or any other person, including but not limited to SELLER, or any other agent or ~r not a party to this Agreement, in accordance with the price, terms or exchange as set forth herein m herwise consented to by SELLER. 2. If a Buyer is procured, whether by BROKER, SELLER or anyone else, who is ready, willinl able to purchase the Property at the price and terms set forth above and SELLER refuses to sell. 3. If SELLER agrees to sell the Property before this contract expires, and SELLER refuses to clos role. 4. SELLER removes Property from the market before expiration of this Listing Agreement. 5. If SELLER grants an option to purchase the Property, SELLER shall pay BROKER a sales c, ~sion in the percentage provided herein based on the price paid for the option and for any extensions ~ f. This commission shall be paid upon receipt by SELLER of any such payments. In the'event s~ ~tion is exercised, whether during the term of this Agreement, or within 90 days thereafter, SELL] all also pay BROKER a sales commission on the gross sales price of the Property in accordance with t Msions herein. Notwithstanding the foregoing, to the extent that all or part of the price paid for the, ~ or any extension thereof is applied to the sales price of the Property, then any commission previ¢ ~aid by owner to BROKER on account of such option payments shall be credited against the commissi, ~able to BROKER on account of the exercise of the option. 6. During the term of this Listing Agreement or within 30 days after the expiration of Listing Agreement: (i) the Property is acquired by a public authority; (ii) an agreement to acquire th perty is reached with a public authority; or (iii) a public authority institutes eminent domain/c, anation proceedings to acquire the Property. 7. SELLER contributes or conveys the Property or any interest therein to a partnership, joint ve~ >r other business entity during the term of this Agreement in lieu of a sale of the Property during the of this Agreement. 8. SELLER is a partnership or other business entity and an interest in the partnership or other busi mtity is transferred, whether by merger, outright purchase or otherwise in lieu of sale of the Property du he term of this Agreement. 9. If within 90 days after the end of this Agreement, SELLER sells or agrees to sell the Prope anyone who has made an affh'rnative showing of interest in the Property by responding to an adverti tt or by contacting the BROKER or salesperson involved or has been physically shown the Pro by the l BROKER or salesperson. It is understood that BROKER shall not seek to enforce co ~n of a commission under this Paragraph 9 unless the name of the prospect is on a written list giver :~LLER within 72 hours after expiration of this Listing Agreement. SELLER further agrees that in the event a lease of the Property is entered into (a) during the term c Listing Agreement, or (b) during the period set forth in Paragraph 9 above with a person or entity as desc~ ',herein, then SELLER shall pay BROKER a leasing fee of Eight (8%~ of gross rate which shall be due and I te upon execution of the lease or as otherwise agreed in writing. As security for BROKER's commissi~ ';LLER hereby grants to BROKER a security interest in the proceeds from the sale or lease of the Propel scribed herein and any rifle company or other closer who conducts the closing on the sale or lease of roperty described herein is ~ to disbume the BROKER's commission provided hereunder to the BR, [ at the time of closing. NOTICE REGARDING CLOSING After a purchase agreement for your property is signed by both Seller and Buyer, arrangements mu: nade to close the transaction. Seller may arrange for a qualified person, including Seller's attorney, to condu~ closing for you. Page 2 !Thorpe Bros., Inc. will arrange to provide closing services for its clients, generally through Chicago Tills/ 'for a charge of $ 350.00 , payable at the time~o£~losing, .All documents related to the closing will be available for review by your attome~t, acco~ntant °i~ fifiafi~6~dvis°r'at the closing or prior to the closing upon your request. As Seller, indicate below whether you will arrange for others to conduct the closing or whether you wish to have Thorpe Bros., Inc. arrange for the closing of your transaction for the charge listed above. This will be decided upon an offer to purchase the property. Please Initial Seller wishes to have Thorpe BroS., Inc. arrange to provide closing services. Seller will arrange for a qualified closing agent or his attorney to perform the closing of this transaction. SELLER'S REPRESENTATIONS SELLER has. full legal fight to sell the Property. SELLER certifies that as of the date of execution of this Agreement, SELLER has not received any notice of building, health or ftre code violations, nor notice of hazardous waste on Property. FORFEITURE OF EARNEST MONEY If a Buyer of the Property defaults and as a result forfeits the earnest money, SELLER will receive . ~0 percent and BROKER will receive ~0 percent of the earnest money. SUB-AGENT'S AND BUYER'S BROKERS I hereby permit you to share part of your commission with other real estate brokers, including brokers only representing the Buyer. MISCELLANEOUS 10. This Agreement is binding upon the heirs, successors, and assigns of the parties. 11. All of the representations and covenants of this Agreement shall survive and be enforceable after termination of the Agreement. 12. This Agreement constitutes the complete agreement between the parties and supercedes any prior oral or written agreements between the parties relative to the provisions herein. No amendment, modification or extension of this Agreement shall be valid or binding unless made in writing and signed by both SELLER and BROKER. 13. This contract shall be governed by the laws of the State of Minnesota. Citv of New Hope Thom_ e Bros.. In~:, SELLER BROKER UT:cldlOT-I Page 3 i~ FRE ~ . PA~ -. ~ 42-1/2 AVl ~ ~, m~ ~ / ~/~1~ 42ND AV~. N. , . ~FOR OFFICE ~ 4~ 41~1 SCHOOl. I =~,~ ~ ~ ~ BUS 4~oo ] ~ ~3 , AVE. N. ' ~, PARK *nu*~v uoS~O ~ ~ 0 : ~:~:::::~: ::~:~:::: ':~:~:~:~:~:~:~:~::~:~::: EXHIBIT E - PROPOSED ZONING ~IGES . ATTACI{ME 4 .~"~. ~ 4.1~ 4.131, 4.132, 4.133 4.13 "a-4# COMMUNITY BUSINESS DISTRICT 4.131 Purpose. The purpose of the "B-4" Community Business District is to provide for khe establishment of commercial and service activities ~which draw from and serve customers from the entire community or sub- region. 4.132 Permitted Uses, B-__4. The following are permitted uses in a "B-4# District: (1) Less Intensive Use Districts. Ail permitted uses in "B-l" and "B- 2#. (2) Antique Shops (3) Art/School Suppliese Booke office Supplies~ Stationery Stores (4) Bicycle Sales/Repair (5) Candy~ Ice Cream, Ice Milk, Popcorn~ Nuts, Frozen Dessertsr Packaged Snacks~ Soft Drinks (6) Carpete Rugs and Tile and Other Floor Coverings (7) Coin and Philatelic Stores (8) Commercial and Professional Offices (9) CoDy and Printing Service (10) Costume and Clothes Rental (11) Office Equipment Stores *(12) Enclosed Boat and Marine Sales *(13) Dry Cleaning Including Plant Accessory heretofore~ Pressin~ and Repairing (14) Drug Store (15) Employment Agencies (16) Florist Shop (17) Furniture Stores (18) Furriers when Conducted only for Retail Trader on Premises *(19) Garden Novelty Stores (20) Gift or Novelty Stores (21) Hobby Store (22) Insurance Sales (23) Locksmith (24) Meat Market but Not Including Locker Storage (25) Paint and Wallpaper S~2es ' (26) Plumbing~ Television, -a-~ioi Electrical Sales and Such Repair *(27) Theatersr not Outdoor Live-In Type (28) Toy Stores .*(29) Custom Manufacturing and Repair (30) Tailor Shops (31) Jewelry Shops and Other Similar Uses (32) Travel Bureause Transportationr Ticket Offices (33) Variety Storese 5/10 Cent Stores~ Stores of Similar Nature (34) Wearing Apparel (35) Banks~ Savings/Loans~ Credit Unions Other Financial Institutions *(36) Public Garage/Parking Ramp t (37) Record Shop (38) Real Estate Sales (39) Building Material Sales of Retail Nature in Totally Enclosed Building (40) Fabric Stores (41) Camera/Photographic Supplies (42) Restaurant (43) Off-Sale Liquor Stores (44) Medical (45) S~ortin~ Goods Stores (46) Pet Shops (47) Hardware Stores 4.133 Permitted Accessory Uses~ B-4. The following are permitted accessory uses in a "B-4' District: (1) Less Intensive Use District. All permitted accessory uses in a "B-3' District. 4-70 072684 ~OA  REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager E DA Kirk McDonald / ~ 6-27-94 Item No. By: Management Assistant By:[/ 7 CONSIDERATION OF REQUEST BY ALL STAR SPORTS FOR ASSISTANCE WITH SITE IMPROVEMENTS The City has received the attached request from All Siar Sports for financial assistance with site improvements on the property located at 7321 42nd Avenue North. The owners desire to make approximately $20,000 in site improvements in conjunction with the City's 42nd Avenue Landscape/Maintenance Improvement Project, including new parking lot paving/striping, new building and pylon sign, new canopy, new front doors, and the construction of a disability access. Staff will be meeting with the property owners on June 24th to further discuss this request to determine if they are interested in a low interest loan, a cost-sharing management, or an out right grant. Staff will be bringing the results of that discussion to the EDA and seeking your direction. Review: Administration: Finance: RFA-O01 ~ ,]'tine 13, 1994 Dan Donahue, City Manager City of New Hope 4401Xylon Avenue North New Hope, MN 55428-4898 Dear Dan' We are very interested in the 42nd Avenue improvements proposed City. In conjunction with this, All Star Sports is interested in some own improvements. We are asking the City of New Hope financial help to upgrad~ following: 1. New or painted canopy 2. New insulated front doors 3. New parking lot paving and striping 4. New sign on the building New sign and message board on 42nd Avenue 6. New posts on the outside to protect the sprinkler pipes and gas gauges 7. Construct disability access The only project we have not explored for costs is the disat access. All of the other estimates total between $I$,000 - 20,000. Alot costs depends on how extreme the improvements are, i.e. estimates are between $2,000 - $6,000. We are interested in The City's consideration of this proposal. Please have someone contact Jerry or Ma~k Norman at 535-3312 to this matter. Regards, ~Norman Ail Star Sports, Inc. NOTE,: REVIEW PLANTINGS IN BUILDING SETBACK AREA BEFORE CONSTRUCTION JMINOUS ,VAY ~ FUTURE BUILDING SETBACK ]~..~..~.~ / /-22-PP CIT7 O, :. I NEY,'" HO, : ~-"-"?'" ~ /~: ~~ + ~,~' .... ._, E~s_v~~:~'~:-~ ........ 20-PF .... ,./ %~.... ,,,; ;:;; .5.~.'///0 : ":' ...... . .... , ~/. , //, ' '" .............. : ;' - -~v:~'.,, //~':...'..':.~4.. . ;../F' h. ICr' ~ ; ,.; ~ ;//./ ////,;//,, .,..,,. , ~L..~x,..~ .... ': ~ ~..~ .:...~ ~~~~/ L ..... ~ :,,'~,. ~ i ,..:...t ~ ]- ,,, ~ ~ ~2 SPORTS "'.."~' :/'"' "" ~ ~ MOVE " .... e~TU~NOUS / REMOVE - '.,:V" ~NSTALL a~TUM~NOUS l SOL. n CONC. ~NSTALL CURe ~ OU:ER SOD (e6~2) AS D~RECTE~ SOD AS D~RECTED 42nd AVENUE - :! CONCRETE SIDEWALK 1 ~q~ _-o~.-.=,'~'=~' ~..' ..:.~ .:.:'. -.' .. ' ' :' '~::~,~:- ..... ~ .... ;-~ .............REMOVE PAINT REMOVE i~OM SiDEW~5_~¢gNCR~ SIDEWALK / / ,//~ .// / //' ..,,.. .... '/,: / / ~ ~ .' ~ . , / ',...; ..~ , .._~ / / /'/'//" .. /// ',.' ~.- ....... uF~I ~ ~///,...~ .......... ;,"1 ,~,~ 42nd AVENUE  EDA REQUF~T FOR ACTION Originating Deparh~ent Approved for Agenda Agenda Section City Manager EDA :~ 6-27-94 Kirk McDonald Item No. By: Management Assistant By 8 CONSIDERATION OF REQUEST BY BROADWAY VILLAGE FOR INCREASED LOAN SUPPORT FOR COMMUNITY CENTER PROJECT, IMPROVEMENT PROJECT NO. 513 The EDA and City Council had previously agreed to support the owner of Broadway Village Apartments to upgrade their property with a Community Center building. On February 14, 1994, the City agreed to loan them 50% of the development costs by using surplus tax increment funds generated by the nearby Anthony James property (owned by same partners) with payback concluding in year 2003. The design of the community center ran into problems due to City storm sewer lines running through the property. Costs have gone up approximately $28,000 due to the utility pipes so the Owners are asking for an increase in the original loan amount of $142,500. The matter was tabled at the June 13th EDA meeting so that the City Engineer, Public Works and the Building Official could further research this matter and clean/impact the storm sewer. Staff will present an update to the EDA on this issue on June 27th. TO: Review: Administration: Finance: RFA-O01 ~ IMP. PROJECT 513 President Erickson introduced for discussion Item 4, Resolution D g Item 4 and Authorizing President and Executive Director to Execute Loa~ ,t Documents for Community ,Center Expansion Project at Broadway e Apartments (Improvement Project No. 513). Councilmember Enck asked if the project was initiated due to the ~r lot at 62nd and West Broadway. City Manager Donahue stated the~ · two separate issues: 1 ) the City wanted something done with thai ;r and asked Lang Nelson if they would consider including that Dro~ s part of the Anthony James project; and 2) Lang Nelson was interE n expanding [heir Broadway Village apartments and asked if the Cit~ d participate by developing a community center for the complex h would be accessible to the senior community at large for use. Mr., Donahue stated that the City has not been able to tie the two [ :s together and that was not the City's intent. Mr. Donahue stated t e City will not make one project dependent upon the other. He sai( ;r America Group, the owners of the corner property, have indicat they wish to proceed with develepment at 6144 West Broadw n regard to the Broadway Village Apartment coml~lex expan,, it significantly upgrades that property and creates a market value that e stabilized, it adds value to the City, and it benefits the complex ~ e residents of that property. Mayor Erickson indicated his support for upgrading the area. Mr. McDonald said the total cost of the project is $200,000 e community center and $85,000 for street lighting for a total of Mr. McDonald stated that the loan/grant proposal requires the EDA · land developer to each fund 50% of the development costs e community center. The EDA cost contribution would not d $142,500 and would be funded out of excess tax increment reven ~r that TIF district. The developer has agreed to provide the EDA wit~ exclusive license agreement to utilize the community center for 2. ~s a year over a 20-year period for appropriate public functions. New Hope EDA February 14 Page 1 , Councilmember Enck commented that this is only possible due to the available TIF funds. Councilmember Wehling inquired as to the capacity of the community room. Mr. Paul Brewer stated that it will hold 68 people. Mr. Brewer · indicated he would like the City to handle the requests for use of the Community center as a control factor, Mayor Erickson stated this could be handled through the Park and Recreation Department. Mr. Brewer stated that his only concern is that it does not interfere with their residents using the building and that is the reason for the 24 meeting/year stipulation (not exceeding two per month) in the agreement. He said that he anticipates that evening meetings would not be a problem as the residents use the community room mostly in the daytime hours. EDA RESOLUTION Commissioner Wehling introduced the following resolution and moved its 94-01 adoption: "RESOLUTION DIRECTING AND AUTHORIZING PRESIDENT Item 4 AND EXECUTIVE DIRECTOR TO EXECUTE LOAN/GRANT DOCUMENTS FOR COMMUNITY CENTER EXPANSION PROJECT AT BROADWAY VILLAGE APARTMENTS (IMPROVEMENT PROJECT NO. 513)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Williamson and upon vote being taken thereon, the following voted in favor: Erickson, Enck, Otten, Wehling, and Williamson; and the following voted against: None; Absent: None; whereupon the resolution was d~l¥ passed and adopted, signed by the president which was attested to by the executive director. New Hope EDA February 14, 1994 Page 2 " LOAN/GRANT COMMITMENT TO: Broadway LaNe)/Golle Holmes, a Minnesota Limited Partnersh (hereinafter referred to as the "Borrower"): The Economic Development Authority in and for the City of Hope (hereinafter referred to as the "EDA") hereby appro Borrower's loan request (hereinafter referred to as the "Loan") the. community center rehabilitation and expansion and str lighting improvement (hereinafter referred to as the "Project The proceeds of the Loan are to be used exclusively to successfu complete the Project. This Commitment is subject to the following terms conditions: 1. Principal Amount of Loan. The amount advanced pursu to the Loan. and Promissory Note evidencing the Loan shall exceed One Hundred Forty-Two Thousand Five Hundred and 00/ Dollars ($142,500,00), 2. Loan Interest Rate. The Loan shall be made as a defer repayment loan, and therefore there shall be no interest paid said Loan unless Borrower defaults on any of the terms of t Commitment, the Building Loan/Grant Agreement or the Promiss Note. In the' event of default by Borrower, the interest shall eight per cent per annum computed from the date of default. 3. Repayment of Loan. The Loan shall be immediately due and payable, in accordance with the repayment terms contained in the Promissory Note referred to in Section 4.A. herein, upon the occurrence of any of the following events within a ten (10) year time period from the date hereof. A. If, without the written consent of the EDA, the Property, as more fully described on Exhibit A attached hereto and made a part hereof, ceases to be used as a "for profit" apartment complex with community center for benefit of the complex residents and public per the License Agreement and strip shopping center upon which the street lighting improvements are intended to be made. B. If~ without the written consent of the EDA, which consent will not be unreasonably withheld, Borrower voluntarily sells, transfers, or otherwise conveys, in any way or manner, its fee. interest in the Real Property unless Buyer accepts all of herein terms and conditions, will be bound by same, and the EDA consents to the conveyance. C, If any Event of Default occurs under the Promissory Note, Building Loan/Grant Agreement, or License Agreement referred to in Sections 4.A-C herein, If none of the events specified in this Section 3 occurs within ten (10) years from the date the Loan is closed, then the Loan will no longer need to be repaid, and w~11 be extinguished and 2 canceled and the Promissory Note shall be deemed paid in full returned to Borrower. 4. Loan..Closing. As a condition precedent to the disbursement of the Loan, each of the following shall be deliv to the EDA in form and substance satisfactory to the EDA: A. A fully executed Promissory Note (hereina referred to as the "Note"), in substantially the same for the document 'attached hereto as Exhibit A. B. A fully executed Building Loan/Grant. Agree (hereinafter referred to as the "Building Loan/G Agreement"), in substantially the same form as the docu attached hereto as Exhibit B, which controls the disburse of the proceeds of the Loan. C. A fully executed License Agreement attached heret Exhibit C, which grants the City of New Hope and the E non-exclusive right to use Borrower's community center public meetings and civic functions, as provided in License Agreement. D. EVidence of Title establishing Borrower has title to the property in a form satisfactory to the EDA. E. Evidence that Borrower has obtained fire and exte coverage insurance, in an amount equal to th® lesser of amount of the Loan or the full insurable value of the Proj with the EDA named as loss payee therein. F. 'All such other documents, instruments and/or items which the EDA may reasonably require. 5. Financial Requirements. Prior to, or concurrently with, the disbursement by the EDA of any of the proceeds of the Loan, the Borrower shall deliver to Commonwealth Land Title Company as. disbursing agent an amount of One Hundred Forty-Two Thousand Five Hundred ($142,500.00), which is the estimated amount of funds it will take to complete the Project over and above the amount of the Loan. The parties may elect to fund on a pro-rata basis as needed. 6, Changes in Conditions. Any. substantial changes in the plans and specifications upon which this Loan/Grant Commitment is based which shall occur after the date hereof must have the written approval of the EDA prior to the closing of the Loan, which written approval shall be subject to such conditions as the EDA may deem to be appropriate. 7. Term of Commitment. This Loan/Grant Commitment shall terminate May 1, 1994 unless the closing of the Loan/Grant shall have occurred prior to such date, or unless this Loan/Grant Commitment is renewed or extended by the EDA. Subsequent to the closing of the Loan, the termination date for this Loan/Grant Commitment' shal] be as provided in the Building Loan/Grant Agreement. 8. Effectiveness of Commitment. This Loan/Grant Commitment shall not become effective unless the accompanying three (3) duplicate copies .hereto are returned to the EDA, with acceptar endorsed thereon by the signature of the party or parties indic~ be]ow, or their., au.thorized agent, on or before May 1, 1994. 9. lautua] Enforceability of Loan/Grant Commitment· Loan/Grant Commitment shall be mutually enforceable by party, and either party hereto may apply to any court, Stat~ Federal, for specific performance of the agreements requirements contained herein, and for such other relief as ma3 appropriate, since the injury to the EDA arising from any fail to comply with the requi rement s contained herein would irreparable and the amount of damage, would be difficult ascertain. 10. Assignment or Transfer of Loan/Grant Commitment. Loan/Grant Commitment shall not be assigned or transferred the prior written consent of the EDA. 11. Additional or Special Conditions. This Loan/Gr Commitment is subject to the following or special conditions, w~ are hereby made & Part hereof: Non recourse to all of the partr of Borrower. /Its 5 c:\wp51\cnh\broadway.1c RESOLUTION ESTABLISHZNG DEVELOPMENT RELATIONSHIP WITH CO-OP NORTHWEST COMMUNITY REV[TALXZAI'ZON CORPORATION TO CONSTRUCT SPEC[ALLY DESIGNED TWIN HOMFR AT 5009 WINNETKA AVENUE NORTH WHEREA.~S, the Economic Development Authority in and for the CiLy of New Hope (hereafter EDA) has established itself as the New Hope Land Trust (hereafter NHLT) by EDA Resolution No. 94-__ adopted at the June 27, 1994 meeting per Minn. Stat. §§462A.30 end 462A.31, and WHEREAS, the EPA has been working in concert with CO-OP Northwest Community Revitalization Corporation (hereafter CRC) to devetop 5009 Winnetka Avenue North (hereaTter Property) with ~pecially designed twin homes for u~timate sa~e to physically disabled individua3s with low and moderate ~noomes as defined by Mtnn. stat. §~2A.30, sUbd. 9, and WHEREAS, the EDA actin9 ~s the NHLT owns fee title to the Property and ~ntends to commit the Property to an affordab3e housing project for persons and families of low and moderate income as described ~n the preceding paragraph through use of the Minnesota Housi~g Finance Agency's Dub]icky owned land trust program, and WHEREAS, the EPA actJng as the NHLT belJeves it is Jn the best ~nterests of the C~ty of New Hope for the promotion of the public health, e&fety &nd welfare of its c~tizens to work with ~ s~n91e developer rot ~he development of the property providing said developer w~th the exclusive o~portun~ty to develop the Property w~th en approved affordable hous~n~ project, and WHEREAS, the EBA actJng as the NHLT is desirous of working exclusively with the CRC to develop the Property with the above des=ribed twin homes and further belieYes the CRC has the same intentions respecting t~e Property. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority ~n and for the C~ty of New Hope as fo31ows: 1, That the CRC is hereby designated as the exclusive developer for the twin home Dro~ect for a Der~od of 90 days from the adoption of this reso~utlon by the EPA. JUN-27-94 MON 09:23 /07 2. That in the event CRC come~ forward with a proj ~"' documented by building plans end specifications, building contract with an acceptable builder and purchase agreement from a qualified buyer of low moderate income, the EDA acting as the NHLT agrees enter ln~o a 99 year ground lease approved by MinnesOta Housing Finance Agency under its publicly ow lend trust program with the ultimate buyer. However, this provision to be enforceable, all documentation the project including but not limited to the buildin. plans and specificationa, the construction contract Lhe pur'ch~se ugr'eemenL must be ~cceptable to the New H, City Attorney and Executive Director of the EDA. 3. The NHLT responsibil'ities for th~s project shall l~mited to the tollow~ng- a) Providing bu~ldable property upon which the homes w~t1 be constructed. b) Entering ~nto a formal development agreement w CRC after NHLT approval of all docUmenter' referred to herein, and after al] of the paramet, of the project are known. A basic framework of · parties' 'participation respons'ibilities attached hereto as Exhibit ','~._~, Neither the EPA acting as the NHLT nor the City New Hope shall have any liability to the CRC or ~ party claiming under, by or through the CRC for' NHLT's failure or inability to provide the prope~ for the herein described twin home developm, reg&rdless of the cause or nature to do so. TI is ~ completely voluntary program on the part both lhe NHLT ~r]d the CRC with no monel~ consideration given by either for the othe~ participation. Adopted by the Economic Development Authority in and for ' City of New Hope this day of --~ 1994. Edw. J. Erickson, President At~es~: Daniel J. Donahue, Executive Director JUN-27-94 MON 09:24 P. 06/07 Co~c~ & SO~;~LL, P.A, ATTORNEYS Al' LAW E~nbur~ Execu~ve Office Plea ~c ~ ~ 8525 Edinbrook C~'o$~h~g ~ o, ~.~ SuKe ~203 Brookl~ P~k, M~neso~ 55~3 994 Kirk McDonald Management Assr. City of New Hope 4401Xylon Avenue North New Hope,' MN 55428 RE: EPA Resolution Designating CO-OP Northwest CRC as Developer for 5009 Winnetka Our File No: 99.111Z4 Dear Kirk: Please find enclosed the proposed Resolution Establishing Development Relationship with CO-OP Northwest Community Revitalization Corporation to Construct Specially Designed Twin Homes at 5009 Winnetka Avenue North that we discussed on June 24 for consideration at the June 27, 1994 Council meeting. This Resolution is fairly self-explanatory. Basically, it designates CO-OP Northwest as the exclusive developer for the twin home project at 500g Winnetka Avenue for the next 90 days. Within that 3 month period, as set DUI in Gary Stout's May S~ 1994 Development Proposal, it is hoped we will have developed building plans and specifications for the twin homes, received a proposed --buildin9 contrast from a prospective builder of the twin homes, and located a prospective buyer qualified to participate in the Publicly Owned Land Trust Program. Thi~ Resolution has been requested by CO-OP Northwest as set out in the first paragraph under the tnttta3 development process on page 1 o~ t~e Development Provosa~ attached to the Resolution as Exhibit A. It really does not bind e/the~ party to proceed with the project, but simply sets out our intentions to motivate each other toward the common objective of developing 5009 Winnetka Avenue with this affordable housing project under the Publicly Owned Land Trust Program of the State and the Home'Program of the County. DUring the ~nterimo we wi31 be refining our Land Trust documentation for subsequent approval by the Minnesota Housin9 Finance Agency and will be preparing a development agreement to be executed by the EPA acting as the New HOpe Land Trust and CO-OP Northwest for the actual construction and sale of the project. JUN-27-94 tl0N 09:25 07 Mr, Kirk McDonald June 27~ t994 Page 2 Contact me if you have any questions. Very truly yours, Steven A. Sondrall elm2 Enclosure cc: Daniel J. Donahue (w/enc) valerle Leone (w/eric] 5UN-27-94 HON 09:2 P, 04/07 ~19f94 ., Joint Development Propotal ¢.O01P NNV,CRC And The City of New I. ~ompl~t~s environmental 3. Obtains list of potential hand~u~pp~d I, Produc~ projo~, b~dg~t 1. ~oin~ Coordination ~efiflg: Kirk, ~H~A, City Atto~oy, ~arb' H~ydon 3. Both: .~vtow for potontiM ownor~ 4. ~oth: mtorv[~ potentially iutoregtod builders 5. Both: A~ute "nffi~ative msrkotinR" of sire, ]liitllL._.D~y elopmmtt ~,RC: Is d~ignlted a~ proj~t dev~lo~r by ~it~ ~¢.~DA,_.nd_hss ~ d~ys ~ ~k. CRC (J~ lead) and City: tr~voI to soo similar project, ohtein buildin8 plies nad sp8cs, review With ~ity b~jldiflff o~oiais, and otJtcrs interoa~d. C~ (in lead) and ~Jty: Meet with potc~zJti purchasers s~d Work 0~t budget and o~er dmtij[~ for those individuals. ~: wo~kw with potential pu~hasors ~ s~lect 8 builder, with oi~ participation, _ ~d ~J~'8 right of veto Cofl~act ~otJu~ ~lth btdidor by CRC, with City ps~loipadon_n* City*s optjon~ m the fleaotxation9 d~duefions made for vnrious fees mhd co~, ns warranted: R~lltors fee. holdln~ costs, ndvurtlsin~ ~ostS, a~hito?ural fees, ~d a~d ~ by the ~C an~ ~. (Optional) City 5pplioo for MHFA mort~tao (estimated ~t~ in the 7.5%/20 year for those Funds (pick cnn with experiemce, and one who w~nts to do it, thoro ts no major profit in *hJ~ ~or them). JUN-2?-94 HON 09:24 07 City and CP.¢ li.t concerns and needs for mutuel protection, pnrt~pution by the builder, just price to construction (scheduled for late Sum~ 9uJlder-Builder ~ttnnRed own interim financing (on building only) Buflder-~uilder builds prope~y City-Building inspectors raview prosroos, project quality CRC-C~C reviews progress, monitors proj~t at l~t ~ioe s week through completion ~ity's D~algna~a M~PA aank-Proj~t MH~A mortgages applied at buildJn~ completion BUilder-soils projeet to buyer ~uyer*takea out mortgage sad m~os in City-has on-~ol~R oversight of ianO, which ma.y be delegated ~ the C~C and City formally ~o~owlegg, project completion Still_ B.O~l,t~ired: Pormal Aotlon by CRC l~xeeutivo Committee commlttinfl $10,000/unit to the S~te (z 6th). 13DA oommilment or s,bsld:~ to the ,;to. Steve-Do ! head ~o do fmythJni~ else in order to l~elp you with tho MHFA laud trust ptperwork? STATUS OF 5009 WINNETKA AVENUE N. REHABII,ITATION -- 8/24/9,t Item Status/Com ments Date 1. Res. Designating Winnetka Ave for MHFA Complete 1/27/92 Blighted Residential Property Acquisition and Rehab Program Grant Application 2. Council approves purchase of site Complete 11/8/93 3. Res. Approving MHFA Land Trust program Complete 11/22/93 Commitment Agreement 4. MHFA authorized $45,000 in PONLT funds Complete 1/21/94 5. Site Acquisition Complete 2/7/94 6. Contract awarded to seal well Complete 3/1/94 7. Contract awarded for sewer and water cut off ., Complete 3/31/94 8. House burned by Fire Dept. Complete 5/19/94 9. Rezone property fi.om R-1 to R-2 Complete 6/13/94 10. City requested extension of PONLT funds Complete 6/24/94 11. Contract awarding removal of debris & garage Complete 6/27/94 12. Environmental approved Complete 6/30/94 13. Henn. Co. authorized City to use HOME funds Complete 7/14/94 14. Environmental Review Complete 15. Res. establishing EDA as a Land Trust Tabled 6/27/94, 7/25/94 16. Res. approving Thompson to screen apps. Tables 7/25/94 17. Res. Establishing dev. Relationship between Tabled 6/27/94, 7/25/94 the EDA and CO-OP NW CRC 18. Application form In progress (Thompson) 19. Ranking form In progress (Thompson) 20. Lottery Proposed (Thompson) 21. Advertising Ongoing ( City & Thompson) 22. Council approves plans & specs '23. Bid approval 24. Construction The following amounts are for both units combined unless otherwise noted. Expenditures Anticipated Actual Acquisition $42,000 (City) $38,417.18 Construction $170,800 (City) Second mortgage write-down $30,000 (HOME) · Marketing/Admin/Inspections $10,000 (City) $2,558.26 Closing costs/legal $3,000 (City) $7,221.81 Appraisal fees $1,000 (City) Energy Conservation Improvements $1,000 (City) Sales Consultant $2,000 (HOME) Title Insurance $325 (City) $325 (City) Sewer and Water cut off $550 (City) $550 (City) Seal well $225 (City) $225 (City) Clear site $4,050 (City) $4,050 (City) Plat fees ( 7109 62nd & 6073 Louisiana) $900 (City) $900 (City) Misc. (Utilities, taxes, site upkeep) ........ $1226.89 (City) TOTAL $265,850 $ Total Anticipated Actual $32,000 (HOME) $235,850 (City) Revenues 'Proceeds from sale of twin home $160,000 HOME funds $30,000 City funds $75,850 New Hope-Accessible Homes-Final New Hope Accessible Homes Total Cost Contributions IJses of Funds As Proposed EDA/Matoh CRC Acquisition/Lot/Demolition $22,500 $15,000 $0 (lot price included in mortgage) Closing Costs-Orig. Purchase $1,000 $1,000 Lot Grading, filling, tree removal $3,000 $3,000 County Fee-5% of HOME $750 $750 Fees-SAClWAClCutslPermit, etc. $3,200 $3,200 New Construction $85,400 ($70/sq. ft.'1220 sq. ft. (wi garage, lot dev.) Legal Expense on Land Trust $1,500 $1,500 Closing/Legal * $2,129 (1.5% points+ $1000) Support Services $800 $800 (10 hours at $80/hr, plus classes) Marketing $800 $800 (10 hrs.) Screening Potential Buyers $800 $800 (10 hours) City Administration @ 5% $6,771 $6,771 (5% of total costs/unit) CRC Development Fee @5% $6,771 $6,771 Total Uses of Funds $135,421 $30,471 $9,921 Lot Payment To City $7,500 (for both halves totals $15,000) Sources of Funds Debt/Equity Less Land Trust/EDA $ ($30,471) $30,471 contribute City Grant (city staff time, fees, demo. etc.) Less CRC Contribution ($9,921) $9,921 Grant Less Home Funding ($15,000) $15,000 2d Loan Less 5% Downpayment ($4,750) $4,750 equity (cost of project, minus contributions) Mortgage Amount/Unit $75,279 $75,279 1st Total Sources of Funds $135,421 Total Debt/Equity Project Appraised Value $95,000 $95,029 0.792413 1st Mortgage to Value Ratio Costs To Homeowner MHFA Mortgage $516 MHFA rate @ 7.3%/30 years (1.5% pts.) MHFA Assistance Payment ($120) Assumes adj. gross income under $21,000 1st Year, after MHFA Payment $396 Estimated Taxes/month $98 1% 1st $72,000, 2% to $95,000 Estimated Insurance/month $35 Total PITI/month $529 Income Required Monthly Income @ 29% $1,826 Note: this is "household income" required not just Annual Income @ 29% $21,907 that of only one person. % of 1992 median income 44% ~- (For family of 4) HOME Funds per Unit $24,921 Total HOME funds, both units $49,842 Page 1 PPU INC TEL:612-941-019S 3ul 27 94 Alternative ~1 Ctty Does a land lee~e (without MHFA ~mplleaaons) on me emau.e ~, ............ ~lteady paid for. and agrees to ~ub~dlnate to the ~rst mortgage lender (some risk, but probably minimal). (same flnandal results aa previous aubmlaalor As Inflation oontinues, eventually ~e Jot 0an be AliernatJve ~2 HOME fund~ oonvert to a grant; due to the lo~ of "land write d~" funds, $1~,000 of the HOME funds are toe grant (for w~te down) not a great precedent, but It works,~ Between the HOM~ and EDA oontrlbution you write down the ptJoe to the MHFA limits of $g6,000, Sheet showing how this workd is attaohed, matlve ~3, use $42,500 of C~G funds, an~ do the dee{ as It was oHglnafly done. stleutlng CDBG ~Land Truet.~unde--do a direst write-down an~ be :dona with It. (~ame flnan~al re~ulta as oflginal) A ternatlve ~4. proceed with the ~and~Tfuet (probably not a good Idea, but at least should be remembered). (The original ~eenado) lernatlve ~5. forg~t MHFA fund~, a?e markot rate for the unlit. (Atta.hed ~heet Gh~. h~ t t m t work. works because the EDA has a "hidden' write down of $~5,000 and the CRC $3k+, which all~s t~lot ~ be bought at [2k + or -. If you lowered the lot ~ioe to $15,000, It works slightly better but not dramatically b~tter. )u need to get tl~e total ~st belo~ either $95,000 or $~ 10,000 to be affordable; which will Involve some orr of grant no mater how you cut R. Your ooat~ are too high, and can't feasibly be out. ?he~L the only questions la where the grant oomes from, either dlreot ~OME or CDBG), or Indlreot (City takes back a ~eto payment lend don't like seeln~ HOME funds used ~r grants (a la Julia) but y~ur situation la different than he~--she was spendinq ~oney that dldn t need to be spent~ou have a budget that can t feasibly be r~uced and efll[iget the ptO~uct. [ ~ not, you oan sell the two lot. for $40,000+, get a conventional mot}gage, swatlow the demelltion, etc. and go wlt~ a 6~% of ~edlan in.me family, or group of tw°, (Two Independent handleap~d would require a few thousand more for a 2d b~e~ible bath jf you don't really negotiate wl~ the builder you ~uld get really screwed a~d thl~ will all fall apart with PPU INC TEL:612-941-O~95 3u! 27~94 ~6:0~ No.O04 P.02 New Hope-HOME grant Comparison Sheet Total Cost Contributions Acquisition/Lot/Demolition $22,500 $0 5,00,0 H E G Closing Costs-Orlg. Purchase $1,000 $1.000 ~.~'... .......... "-~:: Lot Grading, filling, tree removal $3,000 $3,000 County Fee-S% of HOME $0 $0 Fees*SAC/WAC/Cuts/Permit, etc. $3,200 $3,200 Nc~w Construction $85,400 ($70/sq. ft.'1220 sq, ft. (wi garage, Icl dev.} Legal Expense on Land Trust $1,500 $1,500 Closing/Legal * $2,358 (1.8% points+ $1000) Support Services $800 $500 (10 hours at $80/hr, ptus classes) Marketing $800 $500 (10 hrs.) Screening Potential Buyers $800 $800 (10 hours) Administration $6,387 $6,387 (5% of total coots/unit) Total Uses of Funds $127,745 - $t~,087 Cost Lm Grant Lo~s Grant Remaining Cost Sources of Funds Debt/equity "' Less LsndTrust/EDA$ ($15,0e7, $18.087 ~0t.~'~.but~ C..lt~/~r.?_.P~(oItystaff!lme,ifses, demo. etc.) Less Home Funding $0 $0 nofl'e' Less 5% Oownpayment ($4,750) $4,750 (cost of project, Inlnu$ contributions) Mortgage Amount/Unit $90,508 $90,508 Total Sources of Funds $127,745 Total Debt/Equity Project Appraised Value $95,000 $9s,2se 0.ge=T12 let Mortgage to Value Ratio Costs To Homeowner 1 C, onventlonal Mortgage $623 Assumes MHFA ~l) 7,3%130 years MHFA Assistance Payment ($120) Assumes adj. gross Income under $21,000 1st Year, after MHFA Payment $503 Estimated Taxes/month $98 1% 1st $72,000, J~% to ~95,000 Estimated Insurance/month $35 i ' Total PiTi/month $637 Income Re~luired Monthly Income ~ 29% $2,195 Note: this is "household Income" required not Just Annual lnoome ~ 29% $26,340 that of only ope person. % of 1992 median Income (For family of 4) City, State, and HOME Funds/Unit $32,487 Page PPV INC TEL:612-941-O195 Jul 2?,9,4 16:04 No 004 P.O$ New Hope-Market Rate Comparison Sheet Total CoSt Contributions .................................. Uses of Funds As Proposed EDA/Match CRC AcqulsitlonlLotlDemolitlon $22,500 $0 $0 I~lot price Included In mortgage Closing Costs-Orig. Purchase $1,000 $1,000 Lot Grading, filling, tree removal $3,000 $3,000 County Fee-S% of HOME $750 $750 Fees. SAC/WAC/Cute/Permit, etc. $3,200 $3,200 New Construotlon $85,400 ($701sq. ft.'1220 aq, ft. (wi garage, lot dev.) Legal Expense on Land TrUst $1 ,$00 $1,600 CloslnglLsgal * $2,346 (1,5% points+ $1000) Support Services $800 $800 (t0 hours at $801hr, plus classes) Marketing $800 $800 (10 hrs.) Screening Potential Buyers $800 $800 (10 hours) Administration $6,426 $6,426 (5% of total costs/unit) Total Uses of Funds $128,522 $16,126 $3,150 ',,,..&'-:;:,: .................. - _ ::-.,._ , Sourcea of Funds Debt/equity Less Land TrusttEOA S ($15,126) $15,126 oontribute City Grant (olty staff time, fees, demo. etc.) Less CRC Contribution ($3,150) $3,150 Grant Less Home Funding ($15,000) <-~.!~',~ 2d Lass 5% Downpayment ($5,500) '-$'~500 equity '~('~st of project, minus contributions) Mortgage AmountlUnlt $89,746 $89,746 1st Total $ouroes of Funds $128,522 ~i:~ Tot. I D.btlEqulty Project Appraised Value $110,246 0,$16874 15t Mortgage to Value Ratio Coats To Homeowner ........... .,..,, Conventions! Mortgage $706 ri(et rat~ ~ 8,75%130 years (1,5% pts.) MHFA A$sistanc, e Payment ($120) Assumes adj. gross Inoome under $21,000 1st Year, after MHFA Payment $586 Estimated Taxes/month $123 1% let $72,000, 2% to $110,000 Estimated Insuranoelmonth $35 Total PiTi/month $744 Income Required Monthly Inoome ~ 29% $2,$67 Note: this is "household Inoome" required not just Annual Income ~ 29% $30,802 that of only one person, % of 1992 median income ("'"' (For family of 4} City, Slate, end HOME Funds/Unit $33,276 Page 1 Crystal Purchase-Rehab-Final Crystal Purchase-Rehab Budget 7/31/94, with CRC Development Fee Uses of Funds As Proposed EDA/Match New Owner CRC Acquisition $ 62,000 $0 Rehab (with all options) $22,890 $0 Misc. CRC Closing Costs $ 500 $ 500 Asbestos Removal $1 $1 Lead Testing $300 $300 Lead Abatement $800 $800 Fees-Big, Zoning, Etc. $400 $400 Appraisal $250 $250 County 5% Administrative Fee $445 $445 Interim Interest $0 $0 Points at 1.5% $1,135 $0 Support Services (10 hrs. @ $80) $800 $800 Marketing $800 $800 Legal $800 $800 Survey $200 $200 CRC Direct Management $0 City Administration @ 5% $5,073 $5,073 CRC Developer Fee @ 5% $5,073 $5,073 Total Uses of Funds $101,468 $6,574 $450 $8,418 Total Cost of Producing House $101,468 Contribution by EDA $6,574 (match with city staff time, etc.) Contribution by New Owner $450 (points, fees, closing, survey-paid from sale proceeds) Contribution by CRC $8,418 (funds left on table, not in second mortgage) Sale (appraised) Cost of House $89,000 (Sale price by owner--assumes appraises for $89,000+) Sources of Funds Sale Cost of Home $89,000 Less !0% Home Funding ($8,900) Less 5% Downpayment ($4,450) Mortgage Amount/U nit $ 75,650 Costs To Homeowner Conventional Mortgage 67.3% $519 Assumes MHFA @ 7.3%/30 years MHFA Assistance Payment ($120) Assumption-this is based on having Iow income. 1st Year, after MHFA Payment $399 Estimated Taxes/month $97 Estimated Insurance/month $35 Total PITI/month $531 Income Required Monthly Income @ 29% $1,830 Annual Income @ 29% $21,964 % of Median Income/Family/4 44% Total Home Funds-This Project $17,31 8 Page 1 Robbinsdale-Major-Final ROBBINSDALE NEW CONSTRUCTION PROJECT 7/31/94 Uses of Funds As Proposed EDA/Match Builder CRC Lot Cost $35,000 $35,000 Demolition $4,500 $4,500 Misc. Closing Costs $500 $500 County 5% Administrative Fee $713 $713 Lead Testing $395 $395 Asbestos Testing $300 $300 Fees~Big, Zoning, Etc. $1,100 $1,100 Appraisal (Bill check) $300 $300 New Construction (1,250'$70) $87,500 $87,500 Interim Interest $0 Points at 1.5% $1,140 $1,140 Support Services $800 $800 Marketing $800 $800 Legal $1,000 $1,000 Survey $480 $480 City Administration @ 5% $7,474 $7,474 CRC Development Fee @ 5% $7,474 $7,474 Total Uses of Funds $149,475 $50,249 $88,640 $10,586 $149,475 CHECKSUM -.~ Pay EDA for Lot $7,500 Total Cost of Producing House $149,475 Contribution by EDA $42,749 (match with investment in lot, city staff time,, etc.) Contribution by Builder $1,140 (points, fees, closing, survey-paid from sale proceeds) Contribution by CRC $10,586 (funds left on table, not in second mortgage) Sale (appraised) Cost of House $95,000 (Sale price to owner--assumes appraises for $95,000) Total Sources of Funds $149,475 Sources of Funds Sale Cost of Home $95,000 Less 15% Home Funding ($14,250) Less 5% Downpayment ($4,750) (total of 20% down, therefore no insurance premium) Mortgage Amount/Unit $76,000 Costs To Homeowner Conventional Mortgage 67.3% $521 Assumes MHFA @ 7.3%/30 years MHFA Assistance Payment $0 Only for incomes below $26,000 1st Year, after MHFA Payment $521 Estimated Taxes/month $120 Estimated Insurance/month $35 Total PITI/month $676 Income Required Monthly Income @ 29% $2,331 Annual Income @ 29% $27,974 Total Household Income 57% of median Total HOME Funds-This Project $24,836 Page 1 MEMO TO: CO-OP Northwest Community Revitalization Corporation Board MEMO FROM: Northwest Hennepin Human Services Council MEMO DATE: August 17, 1994 SUBJECT: Project description for the project in Crystal: Agenda item #7 Attached is a Project description for the proposed project in Crystal. The project would involve the rehabilitation of a single family home and resale to a low/moderate income family. Details of the responsibilities of the Crystal Economic Development Authority and the CO-OP Northwest Co ~mrnunity Revitalization Corporation are attached. BOARD ACTION REQUIRED: Review and take action. ~UO-I6-94 NON 16:25 OITY OF ORYSTAL FAX NO, 6125370944 P, 02/03 PROJECT DESCRIPTION NORTHWEST COMMUNITY REVITALIZATION CORPORATION HOME-FUNDED ACQUISITION AND REHABILITATION OF A SINgLE-FAMILY RESIDENCE 3033 KENTUCKY AVENI/ENORTH CRYSTAL, MINNESOTA ~ro4ect DescriD%%.9~ Upon the approval of the Northwest Community Revitalization Corporation, the Crystal Economic Development Authority (EDA) will acquire the single family home a~ 3033 Kentucky Avenue North. Once acquired, the'EDA will oversee rehabilitation of the home and then sell the property to a family with a qualifying income. The purpose of this project is to rehabilitate a home to make it available to a low/moderate income family. The EDA will be reimbursed with proceeds from the sale of the property and ~©ME funds. The house was built in 1955, is in generally good condition .- and needs general cosmetic improvements. Other required rehabilitation work includes drainage and basement improvements and construction of a garage. Participants Responsibilities The Crystal EPA will be responsible for acquisition, rehabilitation and marketing of the property. Gary Stout negotiated an acquisition price for the property and a purchase agreement is being drafted. The Crystal Housing In~pecZor.has drafted specifications for improvements and repairs necessary. The Housing Inspector will be responsible for getting bids and overseeing comple~ion of the improvements. Crystal s~aff has already established a relationship with First Bank Robbinsdale and First Bank Mortgage to handle financing for the qualifying homebuyer. The City will work with the bank and/or mortgage company to determine which applicants qualify for purchasing the property. Plan for M~rketin~ the .~$ts The EDA will market the proper~y by u~ing the city newsletter, local newspaper and a sign in the yard. If this is not successful, hhe EDA will work with a local realtor to sell the property. The Housing Inspector is qui~e confident tha~ the EPA will be able to sell ~he property without the assistance of a realtor. !E..La, P~E NL..I HENNEPII'..I HU!'.'!~N 'Z-:.EF',L..~!CE.'E; ~L--a-!_q-94 RUG-[~-94 ~ON 16:'26 OITY OF ORYST~L F~× NO, 6125370944 P, 03/03 Income Leyel o~ HomeownerG The qualifying homeowners must meet the income guidelines required for HOME-funded projects. The Housing Inspector anticipates that a family with an income of $25,000 could comfortably afford acquisition and continued maintenance of the property. ~udo'e~ for Project, Expenses Acquisition $ 62,000 Rehabilitation $ 22,000 Miscellaneous $ 17,000 (legal, survey, fees, staff, etc.) TOTAL EXPENSES $ 101,000 Revenues Proceeds from sale of house $ 85,000 EDA Contribution (staff time, legal) $ 6,500 HOME Funds $ 9,500 . TOTAL REVEN73ES $ 101,000 $chedul~ The schedule for acquisition, rehabilitation and marketing of the property is outlined below: Purchase Agreement Signed August 1994 Closing/Transfer September 1994 Finalize Specifications/ August - Solicit Bids October 1994 Rehab Begins October 1994 Rehab Complete December 1994 Market property December 1994 - April 1995 close/Transfer May 1995 E~imated Market Value o~ Improved P~ooert¥ The property at 3033 Kentucky Avenue North is currently valued by the County Assessor at $62,000. With the improvements completed and construction of a garage, the Housing Inspector and Assessor think the property will have a market value of between $~5,000 and $90,000. 16~ P03 h.l~,.~ HENI'..IEPIN HI_II'.IF~N SEFI'JICES ~g-l_q-_q4