111494 EDA Official File Copy --
I
CITY OF NEW HOPE ]
EDA AGENDA
EDA Regular Meeting #14 November 14, 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 October 24, 1994
4. Update on Site Improvements at Autohaus, 7709 42nd Avenue North (Improvement
Project No. 467)
5. Resolution Approving Additional Multi-family Housing Policy Loan for New Hope
Apartments, 7200-7260 43rd Avenue North (Improvement Project No. 510)
6. Resolution Authorizing Executive Director to Execute Letter of Agreement with
Equal Access Homes to Provide Design Services for Handicapped Accessible Twin
Home at 5009 Winnetlm Avenue North (Improvement Project No. 505)
7. Resolution Calling for a Closed Meeting of the Economic Development Authority
in and for the City of New Hope Authorized by Minn. Stat. §471.705 to Discuss
Litigation/Settlement Strategy on Eminent Domain Proceedings Regarding 5501
Boone Avenue North
8. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
Approved EDA Minutes October 24, 1994
Meeting #13
CALL TO ORDER In the absence of President Erickson and President Pro tern Enck, the EDA
appointed Commissioner Wehling to chair the meeting. Chair Wehling
called the meeting of the Economic Development Authority to order at
10:30 p.m.
ROLL CALL Present: Otten, Williamson, Wehling
Absent: Erickson, Enck
Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil
APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner
Wehling, to approve the EDA minutes of September 26, 1994. All present
voted in favor. Motion carried.
IMP. PROJECT467 Chair Wehling introduced for discussion Item 4, Update on Site
Item 4 Improvements at Autohaus, 7709 42nd Avenue North (Improvement
Project No. 467).
Mr. Donahue advised the EDA that staff excused Mr. Oestrich of Autohaus
from the meeting due to the number of items on the agenda and suggested
that he return to a future meeting.
MOTION Motion was made by Commissioner Otten, seconded by Commissioner
Williamson, to table Item 4 until November 14, 1994. All present voted
in favor. Motion carried.
IMP. PROJECT 524 Chair Wehling introduced for discussion Item 5, Discussion Regarding
Item 5 Vacant Property at 4400 Quebec Avenue North, Improvement Project No.
524.
Mr. Daniel Donahue, City Manager, indicated a company known as
Conductive Containers, Inc. contacted the City and indicated they were
interested in negotiating to purchase the vacant industrial building located
at 4500 Quebec Avenue North. However, the site cannot accommodate
maneuvering of full-sized semi-trucks without utilizing a portion of the
vacant lot to the south known as 4400 Quebec. The 4400 Quebec
Avenue property is identified in the City's preliminary Surface Water
Management Plan as a possible future ponding site. The City Engineer met
with staff and developed a sketch whereby a future pond could be
developed on the southern portion of the property to accommodate the
City's storm water needs and the northern portion of the property could
be combined with the property to the north to address trucking needs.
Mr. Donahue indicated staff will present the storm water ponding report
and recommendations for funding the regional ponding concept in
December. He stated the City could share the cost of purchasing the
property with the interested business and then the CiW would retain a
large easement for a future regional storm water pond and deed the
New Hope EDA October 24, 1994
Page 1
property over to the business so that the parcel would not be tax exempt.
He noted the tax value benefit to the City would offset the cost of the
pond.
He noted the property is appraised at $96,000 and the asking price is
$140,000.
Mr. Mark Hanson, City Engineer, reviewed the legislative mandate for
watershed districts regarding storm water ponding.
MOTION Motion by Commissioner Wehling, seconded by Commissioner Otten, to
Item ,5 proceed with the concept of continuing to negotiate the purchase of the
property at 4400 Quebec Avenue North. Voting in favor: All. Motion
carried.
ADJOURNMENT Motion was made by Commissioner Williamson, seconded by
Commissioner Otten, to adjourn the meeting. All present voted in favor.
The New Hope EDA adjourned at 10:37 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA October 24, 1994
Page 2
~ EDA ~
) REQUEST FOR ACTION
Originating Departmerg Approved for Agenda Agenda Section
City Manager EDA
/' 11-14-94
Kirk McDonald Item No.
By: Management Assistant By: 4
/
UPDATE ON SITE IMPROVEMENT/AT AUTOHAUS, 7709 42ND AVENUE NORTH
(IMPROVEMENT PROJECT NO. 467)
City staff have requested that representatives from Autohaus attend the EDA meeting to give an
update on the progress of the site improvements for the property. Representatives from
Autohaus were in attendance at the October 24th EDA meeting, but this item was tabled due to
the number of items on the agenda. At the July 25th EDA meeting, the EDA declined a request
to allow the existing front retaining wall to remain in place 5' from the property line until an
update on all outstanding issues on the plan is presented. The EDA indicated that they do not
want to amend the existing Development Agreement for only the retaining wall issue if other
changes also need to be made. The existing agreement requires that all landscaping and
remaining site improvements were to be completed by October 31, 1994. The Inspections
Department has reviewed the property and the improvements that are completed and those that
are not completed are identified on the attached copy of the most recently revised agreement
between the City and Autohaus.
MOTION~Y.~ SECOND BY
Review: Administration: Finance:
RFA-O01. ~
4,4.01 Xylon Avenue North Te/ept~one: 612-531-5100 City Hall Fax. =E,2-55'.5
New Hope. M~nnesota 55428-4898 TDD L/ne: 612-531-5109 Police Fax:
PuOlic Works Fax:
October 25, 1994
Mr. Tom Oestrich
Autohaus of Minneapolis
7709 42nd Avenue North
New Hope, MN 55427
Subject: Autohaus Site Improvements
Dear Tom: ,.
Thank you for attending the October 24th Council meeting and I apologize that your item was
tabled due to the number of items on the agenda. The City would appreciate it if you would
plan on attending the November 14th Council meeting to update the Council on the progress of
the Autohaus site improvements. Per our discussion, I would suggest that you respond to each
item listed in the Development Agreement so that the Council is aware if the item is completed,
in prOCess, or will be completed at a later date.
Please contact me if you have any questions.
Sincerely,
Kirk McDonald
Community Development Coordinator
KM/prs
cc: Dan Dotmhue, City Manager
Steve SondraH, City Attorney
Mark Hanson, City ~
Doug Sandstad, Building Official
Thomas Boettcher, Autohaus
~mprov~nt Proj~gt iai67
Family Styled C~'~~ Fo~ Family Livin~
July _7. 1994
Mr. Thomas Boettcher
Autohaus of Minneapolis, Inc.
7709 42nd Avenue North
New Hope, MN 55427
Subject: REQUEST TO ALLOW FRONT RETAINING WALL TO REMAIN IN PLACE
FIVE FEET FROM PROPERTY LINE
Dear Mr. Boettcher:
At the July 25th New Hope Economic Development Authority meeting, the City Manager
presented your letter to the EDA requesting to allow the existing retaining wall to remain in
place five feet from tl~ property line, due to the fact that Universal Colour Lab, Inc. will be
extending their lease and the plan for the front display area will be delayed. The EDA declined
to grant the request until an update regarding ail outstanding issues on the plan is presented.
The EDA indicated that they do not want to amend the existing Development Agreement for
only the retaining wall ~ if other changes also need to be made. As you are aware, all
landscapil~ alld site im~rovemellts (includix~ those in the rear of the building) are to be
completed by this fall. The EDA wants an update on all outstanding issues before it will
consider your request to allow the retaining wall to remain in place, and the City c~nnot proceed
with any curb improvem~ on your property in conjunction with the 42nd Avenue
Landscape/~ ~ .,nl~ov~m Project until the retaining wall issue is resolved.
I have enclos~ · copy of th~ most recently revised agreemenI between the City ~ Autohaus.
Plea.se ~ ~ ~ and respond in writing regarding the outstanding improvements to
be com.nl~ AI~o, p~ l~t Dan or myself know if you will be able to attend an upcoming
Council/EDA meet/~ to ~nswer the EDA's questions so thst we can move forward on this
inaRer.
Family Styled City ~ For Family Livio~
Mr. Thomas Boettcher
July 27, t994
Page 2
Sincerely.
Daniel J. Donahue
City Manager
Kirk McDonald
Management Assistant/
Community Developmem Coordinator
Enclosure: Development Agreement
cc: Dan Donahue, City Manager
Steve Sondrall, City Attorney
Mark Hanson, City Engineer
Doug Sandstad, Building Official
Improvement Project #467
ADDENDUM TO CITY OF NEW HOPE
DEVELOPMENT CONTRACT
1. Parties. ~he parties to this Addendum are the City of New
Hope (hereafter City), Autohaus of Minneapolis, Inc.
(hereafter Autohaus) and Thomas W. Boettcher, individually
(hereafter Boettcher).
2. Property, The real property (hereafter Property) to which the
this Addendum applies is owned in fee by Boettcher and is
located in Hennepin County, Minnesota, legally described as:
(See attached Exhibit A)
3. Purpose. This Addendum shall modify the that certain
Development Contract dated April 4, 1991 (hereafter Contract)
entered into by the parties. Autohaus and Boettcher
acknowledge and agree that they are in breach of the
performance conditions of the Contract and in consideration
for the City's agreement not to immediately pursue its
remedies under the terms of the Contract Boettcher and
Autohaus have agreed to enter into this Addendum.
4. Unperformed CondttfQns. Specifically, Autohaue and Boettcher
acknowledge end agree that they have failed to perform all the
requirements of paragraphs 2.A) through [) and 3 of the
Contract, With respect to. the work required by those
provisions the parties hereto agree that Autohaus and
Boettcher will perform the work as followe:
a. ) The tnetallattofl of concrete curb from the moat southerly
wall of the butldtng northward to County Road No. 9 shall
be co~pleted by October 31, lg93. The remainder of the
COMPLETED curbing &e ehown on the site plan shill bm installed by
October 31, 1994, except that curbing around the
perimeter of the unpaved body shop and repat~ storage
irma shill be Inet&lied if and when said body chop and
r~tr storage area is paved aa eat forth below. All
Gqlktng eh&11 be of a surmountable type aa approved by
tll~¢tty. Autohaue end aoettcher shall submit a diagram
Of IItd curbtng for approval to the Ctty prior to
inetallatton.
b. ) All planttnge shown on the site plan north of the
build'~ng's moet southerly wall shall be installed by
NOT October 31, 1993. All other planttnge shown on the site
COMPLETED plan shall be installed by October 31, 1994.
1
c.) The six-foot opaque security fence around the perimeter
of the body shop and collision repair storage area shall
COMPLETED be installed by October 31, 1994. The existing fencing
shall remain in place until the new security fence is
i nst al 1 ed.
d.) The installation of lighting shown on the site plan shall
be comoleted by October 31, 1993. However, the parties
COMPLETED agree-,-~hat the existing lighting for the collision repair
area as of the date of this Addendum is adequate and no
further lighting is required notwithstanding the lighting
required by the site plan.
e.) All planted areas completed in 1993 will be sprinkled by
PARTIALLY October 31, 1993. All planted areas completed in 1994
COMPLETE will be sprinkled by October 31, 1994.
f.) The installation of the outdoor trash enclosures will be
NOT DONE completed by October 31, 1994.
g.) The front display area will be completed by October 31,
PAVING COMPLETED 1993. However, the parties agree that the front dtslllsY
STRIPING NEEDS TO BE area can be paved with concrete and bituminous.
DONE--NO HANDICAPPED
SPACES h.) The ielande in the transport lane area will be installed
NOT DONE by October 31, 1994.
t.) Erosion control measures of grading and seeding in a form
and manner approved by the City Engineer shall be
completed by October 31, 1993. The eroeton control
measuree shall apply to a11 unpaved areal.
j. )' The City agreee to waive Indefinitely the requirement in
the Contract that Autohaua and Boettcher pave the body
shop and repair storage area. However, if Autohaus and
Boattchar elect to pave the body ehop and repair storage
area at alee p41nt tn the future, then Autohaus and
aoattcher w~11 be reclutred to ineta11, prior to said
paving, the public etorm water drainage improvements
re~lutrad by paragraph 3 of the Contract. And, prior to
tn~ta111nt laid storm water drainage Improvements,
AIJ[_Mteua and-the Ctty muet agree on the reel~Xzitbtlity
~ p4ylient of the colt of laid storm water drainage
llmveimnt ·.
ITEMS THAT NEED TO BE COMPLETED: LANDSCAPING
SPRINKLING
TRASH ENCLOSURE
STRIPING
TRANSPORT LANES
2
5. Nonmerger. The parties agree that the terms of the Contract
and this Addendum shall survive the satisfaction, release or
termination of the April 4, 1991 Mortgage, Security Agreement
and Fixture Financing Statement given by Boettcher, a~Q
Autohaus and Boettcher shall be required to perform all work
set forth above even if said Mortgage, Security Agreement and
Fixture Financing Statement is satisfied, released, or
terminated.
6. Secur. ity. The subdivision bond or other security required of
Autohaus and Boettcher to ensure their performance under the
Contract shall be reduced to $1,000.00.
7. Effect of Addendum. The parties agree that this Addendum
shall not change the other provisions of the Contract, which
shall remain in ful~ force and effect. This Addendum shall be
construed as supplemental to and not inconsistent with the
Contract. The parties further agree that a breach of this
Addendum sh&ll also constitute a breach of the April 4, 1991
Mortgage, Security Agreement and Fixture Financing Statement
given by Boettcher to secure the April 4, 1991 Mortgage Note
executed by 8oettcher. Autohaus further agrees that the
assignment of the Certificate of Deposit given as fin&n¢ial
security to insure performance of the Contract shal~ subject
to reduction am set forth above, also extend to secure
performance under th~s Addendum,
Dated:
I'ividu&l ly
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEP[N )
T going was acknowledged before me this
~o~ dayof
, 1993, by Edw, J, Erickson and Daniel J,
Donahue,/ the Mayor and City Manager, respectively, of the City of
New Hope, a Minnesota municipal corporation, on behalf of said
municipal corpoFat ion,
~-~ HENNEPINCOU~ ~ ~o~ry Publ~
STATE OF MINNESOTA )
)
COUNTY OF HENNEPZN )
, 1993, by - . , the
President of Autohaus of Minneapo11 s, Inc., a Minnesota
corporation, on behalf of sa~d co~
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The for®going was &Gknowlsdgsd before me thts -.~' dmy of
This DOG &fted b~:
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8525 Edtnbrook
Brooklyn Park, lan 55443
(612) 425-5671-
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Originating Department Approved for Agenda Agenda Section
City Manager EDA
i! 11-14-94
Kirk McDonald Item No.
By: Management Assistant By: 5
RESOLUTION APPROVING ADDITIOI~AL MULTI-FAMILY HOUSING POLICY LOAN
FOR NEW HOPE APARTMENTS, 7200-7260 43RD AVENUE NORTH (IMPROVEMENT
PROJECT NO. 510)
In September, 1993, the EDA approved a resolution/policy whereby under certain conditions the
EDA would make loans for the upgrading of multi-family housing complexes (apartments) in
the City. In February, 1994, the EDA approved the first of such loans for extensive
rehabilitation work at the New Hope Apartments, a four-building complex located at 7200-7260
43rd Avenue North. The original estimated project cost was $194,700, with the property
owners putting up 50 percent of the project cost and the EDA making a loan for 50 percent of
the project cost ($97,350). Rehabilitation work has progressed through the summer and City
staff are pleased with the completed work, the cooperation of the owners, and the overall
execution of the rehabilitation project.
Due to unanticipated additional costs, including $14,000 to redo the entire fire alarm system and
$20,000 to replace unforeseen rotten wood around window and door openings, the property
owners have exceeded the initial budget by aPproximately $40,000. The owners are requesting
an additional $20,000 loan from the EDA to cover one-half of the additional expenses.
The enclosed resolution approves the additional loan in the amount of $20,000. The loan is
secured by a Promissory Note and Mortgage and this resolution, and the attached documents,
continue the existing project with the original terms and conditions, but increase the loan amount
by $20,000.
Staff recommends approval of the resolution.
adex 94-09
Renew: Administration: Finance:
RFA-O01 ~
CORRICK & SONDRALL, P.A.
STEVEN A. $ONORALL AI~ORNEYS AT LAW
MICHAEL R. LAFLEUR Edinburgh Execu~ve Office Plaza LAVONNE E. KESKE
MARTIN P. MALECHA
W,~UAM c. S~a~T 8525 ~dinbrook Crossing
Suite ~203
Brookl~ P~k, Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 42~5867
November 9, 1994
CMr. Daniel J. Donahue
Executive Director
EDA in and for the City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE:New Hope Apartments Rehabilitation Loan
Our File No: 99.11118
Dear Dan:
Enclosed for consideration by the EDA please find a Resolution
Approving Additional Multi-Family Housing Policy Loan for New Hope
Apartments, 7200 -7260 43rd Avenue North. This Resolution
authorizes an additional $20,000 loan to New Hope Apartments. The
loan will be secured by a Promissory Note and Mortgage. As with
the initial loan, this mortgage will require repayment of principal
only as long as the property owner does not raise rents by more
than the Consumer Price Index for a period of two years ending July
10, 1996. The EDA's interest in the property will stand in line
behind the EDA's Second Mortgage and Promissory Note and the First
yMortgage on the property held by Town & Country Bank. Essentially,
this Resolution and the attached documents continue the existing
project with the original terms and conditions, but increase the
loan amount by $20,000.
Do not hesitate to contact me if you have any questions.
S i n (~l~l~l SIGNED
BY MARTIN A UALECHA
Martin P. Malecha
s3w
Enclosures
cc: Kirk McDonald (w/en
Valerie Leone (w/enc)
Steven A. Sondrall, Esq.
EDA RESOLUTION 94-'
RESOLUTION APPROVING ADDITIONAL MULTI-FAMILY
HOUSING POLICY LOAN FOR
NEW HOPE APARTMENTS,
7200 - 7260 43RD AVENUE NORTH
IMPROVEMENT PROJECT NO. 510
WHEREAS, the Economic Development Authority in and for the
City of New Hope (EDA) adopted a Resolution Approving Multi-Family
Housing Policies on September 13, 1993, EDA Resolution No. 93-13,
and
WHEREAS, in furtherance of those policies the EDA adopted a
Resolution Approving Multi-Family Housing Policy Loan for New Hope
Apartments, 7200 -7260 43rd Avenue North (Improvement Project No.
510) on February 28, 1994, EDA Resolution No. 94-02, and
WHEREAS, said rehabilitation project involves a four building
multi-family complex located at 7200 -7260 43rd Avenue North in the
City of New Hope and owned by New Hope Apartments, and
WHEREAS, the recitals of EDA Resolution No. 94-02 are
incorporated herein by reference, and
WHEREAS, unanticipated additional costs have arisen during the
rehabilitation project, including $14,000.00 to redo the entire
fire alarm system in order to comply with new fire codes, and
approximately $20,000.00 to replace unforeseen rotten wood around
window and door openings, and
WHEREAS, the property owners have exceeded the initial budget
of Project No. 510 by nearly $40,000.00, and
WHEREAS, the property owners are requesting an additional loan
of $20,000.00 from the EDA, and
WHEREAS, the City Staff has reported favorably regarding the
execution of the original rehabilitation project, and
WHEREAS, the attached Amendment to Loan Agreement and
Construction Disbursing Agreement, Third Mortgage Note and Third
Mortgage (collectively "Loan Documents") set forth acceptable terms
and conditions for this additional loan.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of New Hope as follows:
1. That the foregoing recitals are incorporated herein by
reference.
2. That t~is Amendment to the rehabilitation project known
as Improvement Project No. 510, involving an additional
loan in the amount of $20,000.00 to New Hope Apartments,
a Minnesota general partnership, in accordance with the
Loan Documents attached hereto and incorporated by
reference, is approved.
3. That the President and Executive Director are hereby
authorized and directed to sign the Loan Documents, and
along with staff, are further authorized and directed to
take such steps as are necessary to complete the ~oan and
oversee this rehabilitation project.
Dated this day of , 1994.
Edw. J. Erickson, President
Attest:
Daniel J. Donahue, Executive Director
November 4, 1
Mr. Dan Donahue
City Manager
City of New Hope
'4401 Xylon Avenue North
New Hope, Mn 55428
Dear Mr. Donahue:
Enclosed is a list of invoices submitted to Kirk McDonald and Jean Coone
last Friday. I explained to them that our original estimate of costs would
be $194,700.00. As you can see we are at $187,1t30.74 to date. We still
need to complete an additional $40~45,000.00 worth of work if we are
going to really complete the rehab as planned.
The reason we misjudged the initial dollar amount was due primarily to
two things: (1) I did not anticipate the need to redo the entire fire alarm
system, but the new codes are coming into play so in order to comply, we
spent an additional $14,000.00 and (2) the window project exceeded
budget by nearly $20,000.00 due to the excessive amount of rotten work
around the door and window openings. This had to be fixed and done
properly; otherwise the new windows would be useless. We also installed
new window coverings on all new windows as well as repaired and
replaced all sidewalks that were badly cracked and/or dangerous. The net
result was we went over budget by nearly $40,000.00 dollars.
My request is that the current second mortgage amount of $97,350.00 be
increased up to $117,350.00 so that we can complete the project as
planned. I think you will be very pleased with the project once completed.
Please call me if I should meet with you to discuss further. My phone
number is 341-9395.
S~cer,ely,
David P. Stewart, Partner
New Hope Apartments
DPS:slh
cc: Kirk McDonald
Jean Coone
INVOICES SUBMITIZD FOR PAYMENT
NEW HOPE REHAB
VENDOR TOTAL BILLS COMMENTS
Rayco Constructic~n Z5,888.00 Submitted and
paid
Dorglass, Inc. 93,138.19
Graphic Floor 6,550.06
Bituminous Roadways 6,637.00
Safeway Alarm 21,836.00
New Hope Partnership for
*Kings Window Covering 3,867.66
*Management Ser. Inc.-Labor 3,817.50 Thru 8/15/94
*Bush Barbers 600.00
*Creative Lighting 1,184.00
*Norsk Concrete 2,967.00
*Carpet Resources, Inc. 3,570.75
*JJ. Walker Construction 3,352.05
*Patrick Henry Trust 4,405.50
*Greg Janilcula-Painting 7,485.00
*Petty Cash 1, I00.00
*Specialty Sales Set., Inc. 762.00
Total Invoices
Through 11/3/94 $187,160.74
ITEMS NEEDED TO BE COMPLETED
1. Master key new security system $ 900.00
2. Sealcoat and stripe driveway 2,800.00
3. Purchase 4 stoves 330 = 1320
4 refrig. 400 = 1600
8 air. cond. 400 = 3200 = 6,120.00
4. Replace 4 carpets 1041 = 4,164.00
5. Complete landscaping - pool area 1,500.00
7. Plumbing/bathroom repairs 4,000.00
8. Kitchen/bath fixtures and flooring 6,000.00
9. Sheetrock repair - 10 units 2,000.00
Total $27,484.00
Total Spent to Date $187,160.74
Planned for next 6 months 27,484.00
$214,644.74
Amount requested 214,644.74
Amount agreed 194,700.00
Excess amount needed $ 19,944.74
Request the City increase the note from $97,350.00 to $107,322,37 - say
$107,350.00.
AMENDMENT TO LOAN AGREEMENT
AND CONSTRUCT[ON LOAN DISBURSING AGREEMENT
THIS AMENDMENT to Loan Agreement and Construction Loan
Disbursing Agreement (hereinafter referred to as "Amendment") is
made this day of , 1994, by and between New
Hope Apartments, a Minnesota genera] partnership (hereinafter
referred to as "Borrower") and the Economic Development Authority
in and for the City of New Hope, a Minnesota Municipal Corporation
(hereinafter referred to as "Lender").
WHEREAS, Borrower and Lender entered into a Loan Agreement and
Construction Loan Disbursing Agreement dated June 10, 1994
(hereinafter referred to as "Loan Agreement") in which Borrower
applied to Lender for a real estate mortgage loan on the loan
property, as defined in the Loan Agreement, in the principal amount
of $97,350.00 (the Initial Loan Amount), and
WHEREAS, Borrower issued the following security documents to
Lender for the Initial Loan Amount, all dated June 10, 1994: (a)
Second Mortgage Note in the original principal amount Of
$g7,350.00; (b) Second Mortgage securing the loan note in the
amount of $97,350.00; and (c) the Loan Agreement, and
WHEREAS, Borrower has applied to Lender for an additional real
estate mortgage loan on the loan property in the principal amount
of $20,000.00 (the Additional Loan Amount), and
WHEREAS, Borrower has issued the following security documents:
(a) Third Mortgage Note of even date herewith made by Borrower and
1
payable to the order of Lender in the original principal amount of
$20,000.00 (Loan Note or Note); (b) Third Mortgage securing the
Loan Note in the amount of $20,000.00 (Loan Mortgage or Mortgage)
of even date herewith, executed by Borrower, as Mortgagor, in favor
of Lender, as Mortgagee, covering property therein described
situated in Hennepin County, Minnesota (the Loan Property); and (c)
this Amendment.
NOW, THEREFORE in consideration of the mutual covenant's
hereinafter contained, it is hereby agreed as follows-
1. The terms of this Amendment shall amend the Loan
Agreement, and any conflicts between the terms of this Amendment
and the Loan Agreement shall be resolved in favor of this
Amendment.
2. The purpose of this Amendment is to amend the terms of
the Loan Agreement so that the terms of the Loan Agreement apply to
the Initial Loan Amount and the Additional Loan Amount.
3. Amount of Loan. Borrower agrees to take and Lender
agrees to make a loan in the principal amount of $20,000.00 (the
Additional Loan Amount) to be advanced as hereinafter provided,
said loan to be evidenced by a Third Mortgage Promissory Note and
secured by a Third Mortgage and any other security documents
required under this Amendment. The terms and conditions of the
Third Mortgage Loan Note, the Third Mortgage and any other
instrument required under this Amendment are hereby expressly
incorporated herein by reference and made a part hereto. The total
amount of the Initial Loan Amount plus Additional Loan Amount sha]]
be $117,350.00.
4. In addition to documents required to be delivered by
Borrower under the Loan Agreement, Borrower also covenants and
agrees to immediately without expense to Lender cause the
compliance with the following conditions, such conditions being
hereby made a condition precedent to Lender's obligation to make
any advance of the Additional Loan Amount: (a) deliver to Lender
the Third Mortgage Note; (b) deliver to Lender the Third Mortgage
together with evidence that the mortgage has been duly filed for
record; (c) deliver to Lender evidence of marketable title,
including an updated Abstract of Title and a Registered Property
Abstract; (c) deliver to Lender such evidence of consent of the
First Mortgagee to the Third Mortgage as required by Lender.
5. All duties, obligations, covenants, warranties and
indemnifications contained in the Loan Agreement shall apply to the
Second Mortgage and Second Mortgage Note and also apply to the
Third Mortgage and Third Mortgage Note.
6. Disbursement of the Additional Loan Amount shall be
governed by the terms of the Construction Loan Disbursing
Agreement, but with the following amendments to said Loan
Disbursing Agreement: (a) the Loan amount shall total in the
aggregate $117,350.00; (b) deposit into Owner Fund by Owner of the
Additional Loan Amount shall be made within ten (10) days of the
date of this Amendment or before the owner submits an advance
request to Lender involving the Additional Loan Amount; (c)
indemnification with respect to mechanic's ]iens shall be extended
to cover the Third Mortgage; (d) in the event of any conflict
between this Amendment and the Construction Loan Agreement or the
Construction Loan Disbursing Agreement, the provisions of this
Amendment shall govern.
NEW HOPE APARTMENTS,
a Minnesota general partnership
By:
Its General Partner
By:
Its General Partner
THE ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF NEW HOPE
By:
Its President
By:
Its Executive Director
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4
TH]'RD MORTGAGE
LOAN NOTE
$20,000.00 , Minnesota
, 1994
FOR VALUE RECEIVED, the undersigned, New Hope Apartments, a
Minnesota general partnership (hereinafter designated as
"Borrower"), promises to pay to the order of the Economic
Development Authority in and for the City of New Hope (hereinafter
referred to as "Lender"), (Lender and any holder of this Note from
time to time are each hereinafter sometimes referred to as
"Holder"), at 4401Xylon Avenue North, New Hope, MN 55428, or such
other place as may hereinafter be designated from time to time in
writing by the Holder hereof, the principal sum of Twenty Thousand
and No/lO0 Dollars ($20,000.00) or so much thereof as shall have
been advanced hereunder to or for the benefit of the undersigned
pursuant to the terms of a Construction Loan Agreement dated June
10, 1994, as amended, made by the Borrower and Lender (hereinafter
referred to as the "Loan Agreement"), together with no interest
from the date hereof until fully paid except such interest as set
forth below. The Principal Balance and interest (if any) shall be
due as follows-
A. Monthly principal payments commencing on the first day of the
eleventh month after June 10, 1994, shall be in the amount of
$200.00 per month and a like amount shall be due and payable
on the same day of each month thereafter until the principal
balance is paid in full.
B. In addition to the monthly principal payments, at the same
time Borrower shall pay no monthly interest payments, unless
such interest shall accrue for the previous month in
accordance with the terms hereinafter set forth.
C. All payments made by Borrower pursuant to the terms of this
Note shall be applied first to interest (if any) and then to
reduction of principal.
D. No interest on the Principal Balance shall accrue because of
rental rate increases at the Mortgaged Premises during each
month in which the rental rate for each unit in the Mortgage
Premises remain the same as of June 10, 1994, or increases no
more than the Allowable Rent Adjustment as described
hereafter.
Borrower will have the right to increase rents on individual
apartment units on the Mortgage Premises for new tenants or
renewals of leases for current tenants by the allowable rent
adjustment as set forth below. The allowable rent adjustment
("Adjustment") will be calculated annually, based on the
previous year's Consumer Price Index for general goods, or its
reasonable potential future substitute as available from the
federal government. For the purposes of this Note, the 1993
Consumer Price Index was 2.7%.
Base rents for each apartment unit in the Mortgage Premises
will be established as of the date hereof. The base rents
will be limited to the lowest rent charged for that particular
unit during the six months prior to June 10, 1994.
As of June t0, 1994, Borrower will certify a rent roll listing
each apartment unit on the Mortgage Premises and the lowest
rent charged for each unit during the previous six months, and
including the identification of all "identical" units. On the
anniversary date the year after June 10, 1994, Borrower will
update the maximum rents that may be charged for each unit, as
adjusted by the 1994 Consumer Price Index and send this new
certified rental roll to the Lender. If Borrower charges
rents for any individual unit higher than the maximum
allowable rents for that unit on the certified rent roll
interest will commence to accrue on the entire outstanding
Principal Balance as of the date the higher than certified
rent was first in effect. It is the Borrower's responsibility
to maintain an accurate certified maximum rental roll. There
is no requirement that Lender evaluate the rental roll for
accuracy or any other purpose. In the event of substantial or
intentional misstatement by Borrower on the certified rent
roll, Lender may, in its sole discretion, declare a default
and cause the entire outstanding Principal Balance to be
immediately due and payable, together with any accrued
interest.
Any rents that are lower than the rents charged for identical
units can be raised only by the Consumer Price Index amount
until such time as the unit becomes vacant. For example, if
unit were rented for $380.00 per month, and the remainder of
the identical units on the Mortgage Premises rented for $400
per month, and if the Consumer Price Index were five (5%)
percent, a maximum rental increase allowed during the next
year would be $19.00 for the unit renting at $380.00, and
$20.00 for the identical units renting at $400.00. At the
time that the $380.00 unit became vacant, it could be re-
rented at the then certified price for the identical $400.00
units. Borrower agrees not to evict tenants paying lower
rents than those charged for identical units, if such eviction
is for the purpose of raising rents on these units. Such an
eviction would constitute a Event of Default, allowing Lender
to declare the entire outstanding Principal Balance
immediately due and payable, together with any accrued
interest.
2
E. No interest on the Principal Balance shall accrue because of
rental rate increases after the date two years from June 10,
1994, regardless of any increase in the rental rate charged by
Borrower for any rental units on the Mortgage Premises after
such two year date.
F. Interest shell also accrue from the date of any default
hereunder.
G. If interest is payable under this Note, the interest rate
shall be eight (8%) percent per annum.
If any installment is paid more than fifteen (15) days after
the due date thereof, the Borrower shall pay a late charge of 4% of
the installment to cover the expenses of collection.
Borrower may prepay this Note in whole or in part at any time.
tn the event Borrower sells or otherwise transfers the
Mortgage Premises, or in the event Borrower receives any funds or
economic benefit following the award of low income tax credits in
connection with the Mortgaged Permises, the entire Principal
balance and any interest accrued thereon shall be immediately paid
to Lender.
This Note is secured by a Third Mortgage of even date herewith
upon real property situated in Hennepin County, Minnesota. All of
the terms and conditions contained in said Mortgage and in the Loan
Agreement which are to be kept and performed by Borrower are hereby
made a part of this Note and to the same extent and with the same
force and effect as if they were fully set forth herein; and
Borrower covenants and agrees to keep and perform them, or cause
them to be kept and performed, strictly in accordance with their
terms.
Time is of the essence hereof. In the event of a default in
the payment of any principal or interest due hereunder or in the
payment or performance of anything by Borrower to be paid or
performed under any of the terms and conditions in this Note or in
the Mortgage or Loan Agreement, the Holder at its option and
without further notice, demand or presentment for payment to
Borrower or others, may declare immediately due and payable the
Principal Balance and interest accrued thereon, together with any
reasonable attorneys' fees incurred by Holder in collecting or
enforcing payment thereof, whether suit be brought or not, and all
other sums due by Borrower hereunder or under the Mortgage and Loan
Agreement anything herein or in the Mortgage or Loan Agreement to
the contrary notwithstanding, and payment thereof may be enforced
and recovered in whole in or in part at any time by one or more of
the remedies provided to Holder in this Note or in the Mortgage or
Loan Agreement.
The remedies of Holder as provided herein and in the Mortgage
or Loan Agreement shall be cumulative and concurrent and may be
pursued singly, successively or together, at the sole discretion of
Holder, and may be exercised as often as occasion therefor shall
occur; and the failure to exercise any such right or remedy shall
in no event be construed as a waiver or re]ease thereof.
Borrower waives presentment for payment, demand, notice of
demand, notice of nonpayment or dishonor, protest and notice of
protest of this Note, and all other notices in connection with the
delivery, acceptance, performance, default or enforcement of the
payment of this Note.
Holder shall not be deemed by any act of omission or
commission to have waived any of its rights or remedies hereunder
unless such waiver is in writing and signed by the Holder, and then
only to the extent specifically set forth in the writing. A waiver
with reference t'o one event shall not be construed as continuing or
as a bar to or waiver of any right or remedy as to a subsequent
event.
All agreements herein are expressly limited so that in no
contingency or event whatsoever shall the amount paid or agreed to
be paid to the Holder for the use, forbearance or detention of the
money to be advanced hereunder exceed the highest lawful rate
permissible under applicable usury laws. If from any circumstances
whatsoever fulfillment of any provision hereof at the time
performance of such provisions shall be due, shall involve
transcending the limit of validity prescribed by law which a court
of competent jurisdiction may deem applicable hereto, then the
obligation to be fulfilled shall be reduced to the limit of such
validity and if from any circumstance the Holder shall ever receive
as interest an amount which would exceed the highest lawful rate,
such amount which would be excessive interest shall be applied to
the reduction of the unpaid principal balance due hereunder and not
to the payment of interest.
This instrument shall be governed by and construed according
to the laws of the State of Minnesota.
IN WITNESS WHEREOF, Borrower, intending to be legally bound
hereby, has duly executed this Note the day and year first above
written.
4
NEW HOPE APARTMENTS,
a Minnesota genera] partnership
By.
Its General Partner
By.
Its General Partner
The undersigned do hereby guaranty performance of ail terms
and obligations as specified in the foregoing Second Mortgage Note
for a period of two years from June 10, 1994.
Signature
Print Name
(Address)
Signature
Print Name
(Address)
Si gnature
Print Name
(Address)
Signature
Print Name
(Address)
Si gnat ure
Print Name
(Address)
Signature
Print Name
(Address)
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6
THIRD MORTGAGE
THIS INDENTURE, (hereinafter referred to as "Mortgage") is
made this day of , 1994, between New Hope
Apartments, a Minnesota general partnership, whose address is 100
South Fifth Street, Suite 1250, Minneapolis, MN 55402, the
("Mortgagor"), and the Economic Development Authority in and for
the City of New Hope, having its office at 4401Xy]on Avenue North,
New Hope, MN 55428, (hereinafter called "Mortgagee").
WHEREAS, the Mortgagor has requested and the Mortgagee has
agreed to make a loan to the Mortgagor, evidenced by Mortgagor's
Note (hereinafter the "Note") of even date herewith, payable to the
order of Mortgagee in the principal amount of Twenty Thousand and
No/lO0 Dollars ($20,000.00) and bearing no interest except as set
forth therein.
NOW, THEREFORE, in consideration of the premises and for the
purposes of securing the repayment of the loan made pursuant to the
Note and this Mortgage, and of all other sums which may be advanced
by the Mortgagee in accordance with this Mortgage, and all interest
(hereinafter the "Indebtedness"), and to secure the performance of
all covenants, conditions and agreements herein and in the Note,
the Mortgagor conveys forever all of the Mortgagor's right, title
and interest in the tract or parcel of land, legally described in
Exhibit I hereto, (hereinafter the "Land") together with all of the
buildings, structures and other improvements now standing or at any
time hereafter constructed or placed upon the Land, all easements,
appurtenances and other rights and interests now or hereafter
located thereon (all of the foregoing, together with the land,
hereinafter being referred to as the "Property" or "Mortgaged
Property"),
TO HAVE AND TO HOLD, the Mortgaged Property unto the Mortgagee
forever;
PROVIDED, NEVERTHELESS, that this Mortgage is upon the express
condition that if the Mortgagor shall pay to the Mortgagee as and
when due and payable the principal and the interest (if any) on the
Note, and shall also keep and perform all and singular the
covenants herein contained, then, the Mortgage and the estate
hereby granted shall cease and be and become void and shall be
released of record at the expense of the Mortgagor; otherwise this
Mortgage shall be and remain in full force and effect.
THE MORTGAGOR REPRESENTS, WARRANTS AND COVENANTS to and with
the Mortgagee that it is lawfully seized of the Mortgaged Property
in fee simple and has good right and full power and authority to
execute this Mortgage and to mortgage the Mortgaged Property; that
neither this Mortgage nor the Note contravene any covenant in any
1
indenture or agreement affecting the Mortgagor; that the Mortgaged
Property is free from all liens and encumbrances except those
identified in Exhibit II; that the Mortgagee shall quietly enjoy
and possess the Mortgaged Property; that the Mortgagor will warrant
and defend the title to the Mortgaged Property against all claims,
whether now existing or hereafter arising; and that all buildings
and improvements now or hereafter located on the Land are located
entirely within ~"he boundaries of the Land. The covenants and
warranties of this paragraph shall survive foreclosure of this
Mortgage and shall run with the land.
AND IT FURTHER COVENANTED AND AGREED AS FOLLOWS:
ARTICLE ONE
GENERAL COVENANTS, AGREEMENTS, WARRANT[ES
1.1 Payment of Indebtedness, Observance of Covenants.
Mortgagor will duly pay each installment of principal and interest
on the Note and all other indebtedness and will perform all other
agreements and covenants by Mortgagor to be performed hereunder or
under the Note, the Loan Agreement, or any other security document
referred to herein. Mortgagor will also duly pay each installment
of principal and interest on the First Mortgage and First Mortgage
Note and on the Second Mortgage and Second Mortgage Note and will
perform all other agreements and covenants to be performed under
the First Mortgage, First Mortgage Note, Second Mortgage and Second
Mortgage Note.
1.2 Payment of Impositions. The Mortgagor agrees to pay,
before a penalty might attach for non-payment thereof, all taxes,
assessments, water and sewer charges, and other fees, taxes and
charges of whatsoever nature levied upon or assessed or placed
against the Mortgaged Property.
1.3 Maintenance and Repairs. Mortgagor agrees that it will
keep and maintain the Property in good condition and repair, free
from any waste or misuse, and will comply with all requirements of
law, municipal ordinances and regulations, restrictions and
covenants affecting the Property and its use, and will promptly
repair or restore any buildings, improvements or structures now or
hereafter on the Property which may become damaged or destroyed.
1.4 Insurance.
(a) So long as the Indebtedness remains unpaid, the
Mortgagor shall, at its own cost, maintain with insurers
of recognized responsibility acceptable to the Mortgagee,
hazard and fire insurance on such completed improvements
insuring against loss by fire, hazards included in the term
"extended coverage", loss by vandalism or malicious mischief,
and such other hazards, casualties and contingencies as may be
required by the Mortgagee, on the basis of replacement cost
without a co-insurance clause, in an amount sufficient to
prevent the Mortgagor from becoming a co-insurer of any
thereunder and at least equal to the sum of the unpaid balance
of the Indebtedness and all amounts secured by any senior
mortgage or other lien which exists from time to time against
the Mortgaged Property (to which the Mortgagee does not
necessarily consent). The Mortgagor shall pay all premiums on
insurance r~quired hereunder by making payment directly to the
insurer, and upon request of Mortgagee, the Mortgagor shall
promptly furnish to the Mortgagee evidence of all such
policies, renewals thereof, renewal notices and all
paid-premium receipts received by it,
(b) The policies of all such insurance shall have
loss payable provisions in favor of and in form
acceptable to the Mortgagee, shall provide for at least
thirty (30) days prior to written notices of
cancellation, termination or modification thereof to the
Mortgagee.
1.5 Inspection. The Mortgagee, or its agents, shall have the
right to enter upon the Mortgaged Property during ordinary business
hours for the purposes of inspecting the Mortgaged Property or any
part thereof. The Mortgagee shall have no duty, however, to make
such inspection.
1.6 Mortgagor's Covenant to Provide Information. Mortgagor
covenants to provide documentation and such other information as is
required by the terms and conditions of this Mortgage, the Loan
Agreement as amended and all other documents or instruments of
security referred to in this Mortgage.
1.7 Low Income Tax Credits. Mortgagor agrees to repay the
Note in full immediately upon the receipt of initial funds or
economic benefit following the award of low income tax credits for
the Mortgaged Property.
ARTICLE TWO
EVENTS OF DEFAULT
Each of the following occurrences shall constitute an Event of
Default hereunder:
2.1 Failure to Pay. The Mortgagor's failure to pay, when
due, any payment of interest or principal on the Note or any other
amount required to be paid by Mortgagor hereunder.
2.2 Other Performance Failure. The Mortgagor's failure duly
to observe or perform any of the other terms, conditions, covenants
or agreements required to be observed or performed by the Mortgagor
.hereunder or pursuant to any other agreement between Mortgagor and
Mortgagee.
2.3 Breach of Warranty of Title. The breach of any warranty
of title made by the Mortgagor hereunder.
2.4 Misrepresentation. The making of any misrepresentation
in any financial statement or report submitted to the Mortgagee by
or on behalf of the Mortgagor.
2.5 Volunt~ry Bankruptcy. The filing of a petition in
bankruptcy by the Mortgagor, or its request or consent to the
appointment of a receiver or trustee for the Mortgagor or for all
or any part of its property, or the making of a general assignment
for the benefit of creditors.
2.6 Involuntary Bankruptcy or Receivership. The entry of an
order, judgment or decree appointing, without the consent of
Mortgagor, a receiver or trustee for it or for all or any part of
its property or approving a petition filed against it seeking
relief under the bankruptcy laws of the United States or similar
laws of any state or other competent jurisdiction, which order,
judgment or decree shall have remained in force undischarged or
unstayed for a period of thirty (30) days.
2.7 Foreclosure. The institution of foreclosure or other
enforcement proceedings by the holder of any other lien on the
Mortgaged Property (without hereby implying Mortgagee's consent to
any mortgage or other lien).
2.8 Sale of Property. A sale, assignment, conveyance,
encumbrance or transfer of the Mortgaged Property, or any part
thereof, or any interest therein (except leases for a term of less
than three (3) years).
ARTICLE THREE
ACCELERATION AND FORECLOSURE; OTHER REMEDIES
Upon any Event of Default, the Mortgagee may, at its option,
exercise one or more of the following rights and remedies (and any
other rights and remedies available to it):
3.1 Acceleration. The Mortgagee may declare immediately due
and payable all unmatured Indebtedness secured by this Mortgage,
and the same shall thereupon be immediately due and payable,
without notice or demand.
3.2 Foreclosure; Action or Advertisement. The Mortgagee may
(and is hereby authorized and empowered to) foreclose this Mortgage
by action or advertisement, pursuant to the statutes of the State
of Minnesota in such case made and provided, power being expressly
granted to sell the Mortgaged Property at public auct.~on and convey
the same to the purchaser in fee simple and, out of the proceeds
arising from such sale, to pay all Indebtedness secured hereby with
interest, and all legal costs and charges of such foreclosure and
the maximum attorneys' fees permitted by law, which costs, charges
and fees the Mortgagor agrees to pay. Any real estate or interest
or estate sold hereunder may be sold in one parcel, as an entirety,
or in such parcels and in such manner or order as the Mortgagee, in
its sole discretion, may elect. In case of any sale of the
Mortgaged Property pursuant to any judgment or decree of any court
or at public auction or otherwise in connection with the
enforcement of any of the terms of this Mortgage, the Mortgagee,
its successors and assigns, may become the purchaser, and for the
purpose of making settlement for or payment of the purchase price,
shall be entitled to deliver over and use the Note and any claims
for interest accrued and unpaid thereon, together with all other
sums, with interest, advanced and unpaid hereunder, and all
statutory charges for such foreclosure including maximum attorneys'
fees allowed by law in order that there may be credited as paid on
the purchase price the sum then due under the Note including
principal and interest thereon and all other sums, with interest,
advanced and unpaid hereunder, and all charges and expenses of such
foreclosure including maximum attorneys' fees allowed by law.
Mortgagor acknowledges that if the Mortgagee elects to foreclose by
advertisement and cause the Property or any part thereof to be sold
at public auction, notice of such sale must be published at least
once a week for six (6) successive weeks in a newspaper of general
circulation and that personal notice is not required to be served
upon Mortgagor. Mortgagor further understands that under the
Constitution of the United States and the Constitution of the State
of Minnesota it may have the right to notice and hearing before the
Property may be sold and that the procedure for foreclosure by
advertisement described above does not insure that notice will be
given and said procedure for foreclosure by advertisement does not
require any hearing or other judicial proceeding. MORTGAGOR HEREBY
RELINQUISHES, WAIVES AND GIVES UP ANY AND ALL OF THE CONSTITUTIONAL
RIGHTS TO NOTICE AND HEARING BEFORE SALE OF THE PROPERTY AND
EXPRESSLY CONSENTS AND AGREES THAT THE PREMISES MAY BE FORECLOSED
BY ADVERTISEMENT AS DESCRIBED ABOVE. MORTGAGOR ACKNOWLEDGES THAT
IT IS REPRESENTED BY LEGAL COUNSEL; THAT BEFORE SIGNING THIS
DOCUMENT THIS PARAGRAPH AND MORTGAGOR'S CONSTITUTIONAL RIGHTS WERE
FULLY EXPLAINED BY SUCH COUNSEL AND THAT MORTGAGOR UNDERSTANDS THE
NATURE AND EXTENT OF THE RIGHTS WAIVED HEREBY AND THE EFFECT OF
SUCH WAIVER.
3.3 Forbearance and Other Rights of Mortgagee. Any delay by
the Mortgagee in exercising any right or remedy hereunder, or
otherwise afforded by law or equity, shall not be a waiver of or
preclude the exercise of such right or remedy or any other right or
remedy hereunder or at law or in equity. The failure of the
Mortgagee to exercise any option to accelerate maturity of the
Indebtedness secured by the Mortgage, the forbearance by the
Mortgagee before or after the exercise of such option, or the
withdrawal or abandonment of proceedings provided for by this
Mortgage shall not be a waiver of the right to exercise such option
or to acce]erate the maturity of such Indebtedness by reason of any
past, present or future event which would permit acce]eration. The
procurement of insurance or the payment of taxes or other liens or
charges by the Mortgagee sha]] not be a waiver of the Mortgagee's
right to acce]e'~ate the maturity of the Indebtedness. The
Mortgagee's receipt of any awards, proceeds or damages shall not
operate to cure or waive default by the Mortgagor. The Mortgagee
may at any time, without notice, release any person liable for
payment of any Indebtedness, extend the time or agree to alter the
terms of payment of any of the Indebtedness, accept additional
security of any kind, release any plat or map of the Mortgaged
Property or the creation of any easement thereon or any covenants
restricting use or occupancy thereof, or a]ter or amend the terms
of this Mortgage in any way. No such release, modification,
addition or change shall affect the liability of any person other
than the person so released, for payment of any Indebtedness, nor
the priority and first lien status of this Mortgage upon any
property not so released.
ARTICLE FOUR
MISCELLANEOUS
4.1 Mortgagee's Remedies Cumulative. All remedies of the
Mortgagee are distinct and cumulative to any other right or remedy
under this Mortgage or afforded by law or equity, and may be
exercised concurrently or independently, as often as the occasion
therefore arises.
4.2 Successors and Assigns Bound; Captions. The covenants
and agreements herein contained shall bind, and the rights
hereunder shall inure to, the respective heirs, legal
representatives, successors and assigns of the Mortgagee and the
Mortgagor. The captions and headings of the paragraphs of this
Mortgage are for convenience only and are not to be used to
interpret or define the provisions hereof.
4.3 Notice. Any notice from the Mortgagee to the Mortgagor
under this Mortgage shall be deemed to have been given by the
Mortgagee and received by the Mortgagor when mailed by certified
mail by the Mortgagee to the Mortgagor at the following address:
New Hope Apartments,
a Minnesota general partnership
David P. Stewart
100 South Fifth St., Suite 1250
Minneapolis, MN 55402
6
or at such other address as the Mortgagor may designate in writing
to the Mortgagee.
4.4 Governing Law; Severability. This Mortgage shall be
governed by the laws of the State of Minnesota. In the event that
any provision or clause of this Mortgage conflicts with applicable
law, such conflict shall not affect other provisions of this
Mortgage which c&n be given effect without conflicting provisions
and to this end the provisions of the Mortgage are declared to be
severable.
4.5 Counterparts. This Mortgage may be' executed in any
number of counterparts, each of which shall be an original but all
of which together shall constitute one instrument.
4.6 Hazardous Materials. Mortgagor covenants, represents and
warrants to Mortgagee, its successors and assigns, that during the
Mortgagor's ownership of the Property, the operation of said
Property has not violated and is not currently violating any
federal, state or local law, regulation, ordinance or requirement
governing Hazardous Materials; that the Property is not listed in
the United States Environmental Protection Agency's National
Priorities List of Hazardous Waste Sites nor any other list,
schedule, log, inventory or record of Hazardous Materials or
hazardous waste sites, whether maintained by the United States
Government or any state or local agency, and that the building
improvements do not contain any formaldehyde, urea or asbestos,
except as may have been disclosed in writing to the Mortgagee by
the Mortgagor at the time of execution and delivery of this
Mortgage. The Mortgagor agrees to indemnify and reimburse the
Mortgagee, its successors and assigns, for any breach of these
representations and warranties and from any loss, damage, expense
or cost arising out of or incurred by Mortgagee which is the result
of a breach of, misstatement of or misrepresentation of the above
covenants, representations and warranties, together with all
attorneys' fees incurred in connection with the defense of any
action against the Mortgagee arising out of the above. These
covenants, representations and warranties shall be deemed
continuing covenants, representations and warranties for the
benefit of the Mortgagee, including any purchaser at a mortgage
foreclosure sale, any transferee of the title of the Mortgagee or
any subsequent purchaser at a foreclosure sale, and any subsequent
owner of the Property and shall survive any foreclosure of the
Mortgage and any acquisition of title by Mortgagee or anyone
claiming through or under the Mortgage as the title of the
Mortgagee, The amount of all such indemnified loss, damage,
expense or cost, shall bear interest thereon at the rate of
interest in effect on the Note and shall become so much additional
indebtedness, secured by this Mortgage and shall become immediately
due and payable in full on demand of the Mortgagee, its successors
and assigns. Said indemnity shall only apply in connection with
the conditions which were in existence, in whole or in part, prior
to the date on which Mortgagee acquires possession and title to the
Property and shall not apply in connection with liability of the
Mortgagee due to action taken by it or its assigns while it was
Mortgagee.
4.7 Future Advances.
(a) To the extent that this Mortgage secures future
advances, the amount of such advances is not currently
known. The acceptance of this Mortgage by the Mortgagee,
however, constitutes an acknowledgement that the
Mortgagee is aware of the provisions of Minnesota
Statutes §287.05, Subd. 5, and intends to comply with the
requirements contained therein.
(b) The maximum principal amount of indebtedness
secured by this Mortgage at any one time, excluding
advances made by the Mortgagee in protection of the
mortgaged property or the lien of this Mortgage, shall be
$20,000.00.
(c) The representations contained in this section
are made solely for the benefit of the county recording
authorities in determining the mortgage registry tax
payable as a prerequisite to the recording of this
Mortgage, The Mortgagor acknowledges that such
representations do not constitute or imply any agreement
by the Mortgagee to make any future advances to the
Mortgagor.
IN WITNESS WHEREOF, the Mortgagor has caused this Mortgage to
be duly executed as of the day and year first above written, '
NEW HOPE APARTMENTS,
a Minnesota general partnership
By
Its
By.
Its
8
STATE OF MINNESOTA )
) SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this
day of , 1994, by and
, both general partners of New Hope
Apartments, a Mi.nnesota general partnership, on behalf of the
partnership.
Notary Public
THIS INSTRUMENT DRAFTED BY:
CORRICK & SONDRALL, P.A.
8525 Edinbrook Crossing, Suite 203
Brooklyn Park, MN 55443
(612) 425-5671
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EXHIBIT I
That part of Lot 34 lying South of a line drawn parallel to and 60
feet North of the South line of Lot 3t, extended East, to the East
line of said Lot 34, and lying North of the South line of Lot 32,
extending East to the East line of said Lot 34, except the East 163
feet thereof, ,.
all in "Auditor's Subdivision Number 324, Hennepin County,
Minnesota", according to the recorded plat thereof,
EDA
REQUF~T FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
~ 11-14-94
Kirk McDonald //x) Item No.
By: Management Assistant By: 6
RESOLUTION AUTHORIZING EXECIJ~IVE DIRECTOR TO EXECUTE LETTER OF
AGREEMENT WITH EQUAL ACCESS HOMES TO PROVIDE DESIGN SERVICES FOR
HANDICAPPED ACCESSIBLE TWIN HOME AT 5009 WINNETKA AVENUE NORTH
(IMPROVEMENT PROJECT NO. 505)
The EDA is cooperating with the CO-OP Northwest Community Revitalization Corporation to
construct a handicapped accessible twin home on City-owned property at 5009 Winnetka Avenue
North. When completed, the homes/property will be sold to provide affordable home ownership
opportunities for persons with disabilities. It is the intent that the City hire a firrn to work with
staff to develop house plans for the site and then seek bids on the construction.
City staff have solicited Requests for Proposals from four architects/designers who specialize
in the design of accessible homes and have reviewed/checked their references and previous
work. The firms and their estimated costs are listed below and described in more detail in the
attached materials:
Firm Estimated Cost
LHB Engineers & Architects $9,500.00
Accessibility design $7,475.00
Roark, Kramer, Rascoe $3,600.00
Equal Access Homes $1,800.00
Staff requests authorization for the Executive Director to enter into and execute a Letter of
Agreement to be drafted by the City Attorney, with Equal Access Homes, the low quote, to
provide design services for this project. Staff will bring the twin home design back to the EDA
for approval prior to the construction bidding process.
Staff recommends approval of the resolution.
To: n 7iOt q4- 10 : Es/On
Review: Administration: Finance:
RFA-O01 !~
EDA RESOLUTION NO. 94-
RESOLUTION AUTHORIZING EXECUTIVE DIRECTOR TO EXECUTE
LETTER OF AGREEMENT WITH EQUAL ACCESS HOMES TO
PROVIDE DESIGN SERVICES FOR HANDICAPPED ACCESSIBLE
TWIN HOME AT 5009 WINNETKA AVENUE NORTH
(IMPROVEMENT PROJECT NO. 505)
WHEREAS, the New Hope Economic Development Authority is cooperating with CO-OP Northwest
Community Revitalization Corporation to construct a handicapped accessible twin home
on City-owned property at 5009 Winnetka Avenue North; and
WHEREAS, when completed the homes/property will be sold to provide affordable home ownership
opportunities with disabilities; and
WlIEREAS, it is the intent that the City hire a f'uma to work with staff to develop house plans for the
site and then seek bids for the construction; and
WHEREAS, City staff have solicited Requests for Proposals from architects/designers who specialize
in the design of accessible homes and have reviewed/checked their references and
previous work; and
WHEREAS, the fa'ms and their estimated costs are as follows:
Firm Estimated Cost
LHB Engineers & Architects $9,500.00
Accessibility Design $7,475.00
Roark, Kramer, Rascoe $3,600.00
Equal Access Homes $1,800.00;
and
WHEREAS, staff requests authorization for the Executive Director to enter into and execute a Letter
of Agreement, to be drafted by the City Attorney, with Equal Access Homes, the low
quote, to provide design services for this project.
NOW, THEREFORE, BE IT RESOLVED, by the New Hope Economic Development Authority that
the Executive Director is hereby authorized to enter into and execute a Letter of
Agreement with Equal Access Homes to provide design services for handicapped
accessible twin home at 5009 Winnetka Avenue North (Improvement Project No. 505).
Adopted by the Economic Development Authority in and for the City of New Hope this 14th day of
November, 1994.
President
Attest:
Executive Director
Memorandum
DATE: NovemDer 9, 1994
TO: Kirk McDcnald, Management Assistant/Community
Devetol~, nent Coordinator
FROM: Sarah Bellefuil, Administrative Analyst
RE: Architect/Designer for 5009 Accessible Twin Home Project
On October 28, I sent the attached letter to four architects/designers who have done work
specifically with accessibihty design m the past. All four responded to my RFP.
Since then, I have .done reference checks on these individuals and have visited some of the
accessible homes that they designed. In response to my reference checks I have the follov, ang
information:
LHB Engineers & Architects: They have very good design quality and produce thorough plans
and specifications. They also have a staff imenor designer that is knowledgeable about
accessibility design. LHB Engineers & Architects has done a number of accessible projects
including eight barrier flee houses for Habitat for Humamty, two of which were fully accessible.
They have also designed accessible housing for Project for Pnfle in Living, Inc.
Their estimated cost is $9,500.
Accessibility Design: They ate very knowledgeable about accessibility needs and design. They
have completed a number of ~ acceasible homea (2800 square fe~ or more) and additions.
They have taken both ~ d~i~ and modified them and have designed homes fxom scratch. I
recently viaited a accessible home that Accessibility Design comple',ed and think that they could do
a good job.
Their estimated co~t is $7,475 phm "out-of-pock~ expense."
Roark, Kramer, Rosco,: They have dooe two acceasible houses in the Powderhom Park
neighbortm~ ~f~. The ~ze oftheae homea were between 1,300 and 1,500 square feet.
The ~ I e~ac~d s~at,~ that they were a good design company but do not have good
Their eaximated coat is $3,600.
Equal Access Homes: I spoke with numerous references concerning thi.~ company and visited one
home that th~ recently built. Each stated that they were very pleased with their work, that they
built ~thin budget and were very. knowledgeable about accesslbflit~- issues. Each of the references
I contacted lived ua moderate sized homes, be~'een 1,100 to 2.400 square feet. The reference
stated that the company e~ther took an exastmg plan and modified it or drew up their own plan.
They also stated that Equal Access Homes is always avaalable for questions. This company has
done a tot of work w~th the Veterans Administration and is knowledgeable about their accesstbllitv
requtrements for materials and design.
Thetr estunated cost ix'$1,800 plus $35.00 an hour for any unscheduled meetings. The reason the
cost is so low ts because the person that designs the houses bulk by Equal Access Homes ts a
designer, not an architect. In addition, the specs are written up by a builder, not an arcbatect.
Equal Access Homes is a designer/builder. Therefore, they will also bid the construction work for
this project.
After reviewing the four proposals, I feel that Equal Access Homes may be the best option for the
accessible twin home project. They arc knowledgeable about handicap accessible design and have
designed and built small, accessible homes. They arc also inexpensive and have received very. good
recommendations from people they designed and built houses for in the past.
4401 Xylon Avenue North Tetepl~one: ~12-531-5100 . , City Hall
New Hope, Minnesota 55428-4898 TDD L~ne: 612-531.5109 Pot~ce Fax
PuOtic Wor~$ Fax.
October 28, [994
1ane A. Tnmble, ASB'~--
Access~bdity Design
2933 D~om Avenue So~
~~lis, ~ 55416
D~ J~e:
~ you for m~g ~ me ~ w~ to ~s ~e ~p a~essible ~n home proj~t to
develo~ by ~ Ci~ of New Ho~. You pr~d~ me
demo~ ~owl~ge ~ ~m~ m ~i~i.s
inmr~ m ~g out yo~ e~im~t~ ~ for ~e ~mces li~ ~low. ~e~ e~t~ shoed ~ ~n
dol~ fi~e fo~.
1) M~ ~ Ci~ ~ ~ ~ ~ ~ble ~ home dmi~.
2) ~ a ~~ ~" for ~
3) D~elop ~on ~ ~ fo~l ~ ~ ~ ~ ~ ~ ~ b~d~. ~ Ci~ roll go out
for bid on ~ ~ you ~.
4) V~t ~ a~ ~ w~on on a ~ or ~-~
5) M~t~~~~~n~~~r~m~epmj~. E~ples
incl~ ~ ~ ~ ~ ~ ~ ~
6) Mint ~ ~ ~ to ~i,e ~lom ~ ~g ~ ~m, ~te~, ~c. Balm ~es
It ~ ~e Ci~'s ~ ~ ~ ~ ~ ~ llSO ~ 1250 ~ f~ ~h. ~ ~o~d ~ch ~ve a
ling ~ ~ ~ini~ ~ O~ ~ ~ ~th~ a ~ r~~r, ~ ~o ~. The
Ci~ ho~ m ~ ~ ~ ~ ~ a ~ of $15~,~.
~ ~~~~ ~Ci~~~pof~e~ ~~pmg
~ ~ ~ ~ ~ ~ ~ Ci~ Fo~ ~= m~on ~ ~ m~l~
I ~e ~a~~g~~~. ~ ~ ~ ~ ~ ~ble ~ 51~ Avenue.
Family Styled City'~~ For Family LJvin8
November 3, 1994
Sarah Bellefuil ~ '
Administrative Analyst
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428-4898
Dear Sarah:
Thank you for your letter requesting a proposal for the accessible twin homes. LHB is very
interested and uniquely qualified to do this project. Listed below are our per home costs to
complete the project, based upon the list of services you have outlined:
Marketing Plans $1,500
Conslruction Documents $3,500
Construction Administration $1,000
Buyer Assistance
Per Home C~
TOTAL COST $13,000
If the twin homes wer~ done at the same time, our total cost would be reduced to $9,500.
LHB will provide the greatest overall quality including the following value-added services:
· LHB's experience and ~ designing five similar ~ble homes
· Proven plan layouts which can be modified for this project
· An ~ intelior desi~ller who speci~li,_~ in accessibility
We are ~ that when you ~aluate our qualifications, compatibility and value, LHB will
be your besi ~ to desi~ your accessible twin homes. Please let me know if you will need
referenc~ in ~klition to those already provided.
I will call you next week to follow-up with you regarding this proposal. Thank you for your
consideration.
Vie~-Pr~idem Minneapolis Office
Duluth, MN Minneapolis, MN Superior, WI
Project Experience
Dayton's Bluff& Thomas Dale
Projects In two separate projects in St.
Daytons' BluffHomes & Paul LHB was involved in
Thomas~ale Replac. mnent designing 15 new single
Houses family houses in historic
neighborhoods. The project
Client involved working with a new
Dayton's BIMfN~rh~ Community Development
Housing Sm'vic~, Coiporation in Thomas Dale,
District 7 Planning Council and attaining approval by the
~ St. Paul Historic Preservation
Location Commision for Dayton's Bluff
St. Paul, Minnesota Neighborhood Service.
LHB Engineers & Architects
Project Experience
Project For Pride In Living
Project For Pride In Livi~ Two new home~ designed to be
Homes acceesibk to handicapp~
individu~ sad to compliment
Client the netF, bb~s exJ~inf
Projec~ Fo~ ~ la Livid, Ino. hom~.
Project Experience
Lyton Park Place
Project Design of 21 single-family homes
with complementary optiom and
Lyton Park Place styles to integrate into an estab-
Residential Development lished urban neighbothood. Five
of the homes were designed to be
Client completely barrier free, and others
Habitat for Humanity have one level of accessibility
Justin Propetti~, Inc. with bm'tier ft~ entries. New on-
Locatiol site parking lots and street parking
St. Paul, Minnesota were al~o created.
Published
Architecture Minngsota
Magazine May/June 1992
Architecture Magazine
May 1992
,4~arded
LHB Engineers & Architects 1991 MSAIA Honor dward
Project Experience
Commonsview Development
Project ~ Design ofthr~ single-family
Commonaview Development home~ with complementary
options and styles to integrate
Client into an established tn'ban neigh-
Habitat for Humanity borhood.
Three other home~ wer~ built by
~ the Ortlffill£ IViinnlllipolJ$ Metro-
Minneapolis, Minn~m politan Housing Corporation and
Habitat for Humanity.
This site is in the 1900 block of
Morgan Avenue North.
Project included these elements:
Single/multiple-family home~
and apatqment blli]clings
Multiple construction projects
Multiple jurisdictions
Public contacts
Consultant team structure
Field data collection
References
Joarme Toolcy
Thomas Dale District 7 Planning
Council
369 University Avenue
St. Paul, MN 55103
(612) 298-5068
Susanne Patterson Kloven
Project for Prid~ in Living
216 Chicago Avenue South
Minneapolis, MN 55404
(612) 874-8851
Stephal Siedel
Twin Cities Habitat for Httmanity
P.O. Box 7053
Minneapolis, MN 55404
(612) 332-3372
Amscan Lung Association
1829 Portland Aventm
(612) 871-7332
David Van Landsehaot
Mem's Park: Place, Sui~ 125
405 Sibley Stre~
St. Paul, MN 55101
(612) 227.*9842
Am F./chul
Dayton's Bluff Neisborixxxt
951 East Fitth Strut
St. Paul, MN 55106
(612) 774-6995
lB Il
Letter of Agreement
Date: November 3, 1994
Client: City of New Hope
4401 Xylon Ave. North
New Hope, Minnesota 55428
Contact: Sarah Beilefuil - Ph. (612) 531-5137
Project: Handicap Accessible Twin Home, New Hope, Minnesota
sco,,, o,S.r,,,c.,:
Accessibility Design will provi and consultation, project management
and product research, buyer assistance, and marketing services for the handicap
accessible twin home project to be developed by the City of New Hope. In reference to
the attached request for services compiled by Sarah Beilefuil, the following services will
be provided by Accessibility Design under the terms of this agreement:
Consultation and Dmian -~ewie~,~
- Meetings with (~jty to dJ~'~.-'uss the accessible twin home project.
- Preparation of comtruction documents to include: floor plans,
elevations, sections, details and product/finish specifications as
needed to build twin home.
- Site and landscape comultation for access issues.
- Conducting a needs assessment of the buyers to assist with determining
special needs with respect to the design and product selections.
- Review finishes and appliances which have been presented to the
homeowner by the builder for accessibility features.
Proiaef Marm~m~ne S~rvi~ - Produ~'tion of drawings and text lay-outs for marketing flyers.
- Product research, specification and procurement of specialty products
and equipment for each home.
- Site visits during construction twice per month or as needed.
· ·
iiI
mm m--m-
Service Fees:
The proiect fee for consultotion ond design ond proied' monogement services
performed by Accessibility Design for the ~in home outlined in this ogreement is
$7,475.00 equivotent to 1 '15 hours ot o rote of $65.00 per hour.
Any 'out-of-pocket expenses" incurred by Accessibility Design which ore
incidentol to the tim~Jy completion of this project, such os long distonce phone coils,
postoge, photocopying, focsimiles, film developing, typing, binding services, postoge
ond hondling, ond other documented expenses, sholl be invoiced to client monthly.
Reimbursement for mileoge will be billed to client ot o rote of $0.28/mile. Trovel time
will be billed ot o rote of $24.00/Hour.
A retainer of $2,500.00 will be collected by Accessibility Design upon client's
signature of this agreement and will engage the services listed herein. The remainder
of service fees will be due monthly according to the payment schedule below:
Contract Signing (retainer) 2,500.00
December 1, 1994 1,500.00
January 1, 1995 1,500.00
February 1, 1995 .1,500.00
March 1, 1995 475.00 (balance)
This fee schedule is based on the project fee for the services listed above and is
designed to distribute payment evenly throughout the project phases for ease of billing
and record keeping. It is not representative of monthly work loads and will not be
altered unless the scope of services changes. Monthly fees above do not include
"additional expenses", which will be invoiced separately each month. If project is
completed before March 31,1995, the balance of the :$7,475.00 project fee will be
payable in full at completion date. If project extends beyond March 31,1995, monthly
invoices will consist only of additional fees.
For items purchased by Accessibility Design on client's behalf, such as special
equipment, furnishings, and accessories, Accessibility Design will prepare estimates in
the form of sales orders and submit them to client for review. Purchase orders will not
be issued until dient returns o signed copy of the sales order together with the required
deposit wh~ sl~r. ified. All purchases will be billed to client at Accessibility Design's
cost+ 25'~oncl shipping/handling charges plus any rush processing and/or delivery
charges For the duration of this agreement only. On most purchases, this represents a
substantial discount from retail prices. Additional terms and conditions of purchasing
will appear on the back of each sales order.
· ·
II In
mm
If Accessibility Design is required to render services not contemplated by this
agreement, to provide extra drafting or incur additional expenses due'to change orders
made by client, Accessibility Design shall be paid for such extra services and expenses,
for the reasonable value or cost thereof. Revisions and changes may be made during
the study of the work. Changes that must be made by Accessibility Design resulting
from revised ideas, structural or mechanical after the work of Accessibility Design has
been completed and accepted, will be billed to the client at the regular hourly rate plus
any other specific c~sts incurred. Such changes or revisions will be made only upon
receipt of written order from the client.
All invoices are due and payable upon receipt. Amounts ¢emaining unpaid
thi~ (30) days from date of invoice will be charged interest at the rate of 1.5 percent
per month on the outstanding balance (equal to 18% per annum).
Liability:
Accessibility Design's liability to client and all others for claims, losses, or other
damages or expenses due to negligent errors or omissions and other breaches of this
agreement shall be limited to the total compensation paid to Accessibility Design by the
client. Accessibilily Design is not an architectural or engineering firm. Where
appropriate or required by law, Accessibility Design will retain licensed professionals as
subconsultants to provide architectural and engineering services.
Acting as a design and consultation service, Accessibility Design cannot be held
responsible for work engaged by third parties or decisions not made by Accessibility
Design. Accessibility Design cannot be held responsible for warranties not provided by
our manufacturers and resources. Review and approval of all designs and documents
prepared by Accessibility Design is the responsibility of the client. AccessJbility Design
upholds the right to place lien on properly according to the Minnesota Statutes and
State of Minnesota Lien Rights.
Termination:
The agreement between client and Accessibility Design may be terminated by
either party in case of substantial breach by the other, upon seven (7) days written
notice. In case of such termination, Accessibility Design shall be paid for services
rendered 1~ date in accordance with this agreement, including additional services,
product oedem, and reimbursable expenses then due. Except by breech by either party,
this letter of agreement and it's terms will terminate one year from its date,
November 3, 1995.
· []
mm mm
Il In
I ·
Ownership and Use of Documents:
Ail documents prepared on behalf of this project by Accessibility Design are the
property of the party that originally prepared them. All designs remain the property of
Accessibility Design and may only be usecl for the purpose of the project for which this
c~greement presides. Permission for use of designs by third parties for future projects
must be granted by Accessibility Design. Accessibility Design reserves the right to
videotape, photograph and otherwise document the execution of the project for
educational use and Accessibility Design's project portfolio, promotional aids, and
design competitions.
General Conditions:
This agreement comprises the entire agreement between client and Accessibility
Design and supersedes any prior discussions. Any amendments must be in writing and
signed by all parties.
Respectfully submitted,
Date
Jane A. Trimble, ASID
President, Trimble Enterprises, Inc.
Accessibility Design
ACCEPTANCE
Accessibility Design is hereby authorized to furnish all services mentioned above,
for which the undersigned agrees to pay the amount mentioned in said
to the terms .
proposal/agreement, according cO.~f
Client Signature
· ·
Il
II II
Projects and Affiliations
Accessibility Design is a State of Minnesota Approved Vendor and a
Targeted Group Woman Owned Business.
Professional Affiliations
American Sociel,/of Interior Designers - Professional Member and Guest Lecturer
Builders Association of lhe Twin Cities. Professional Member
Rotary Club of Minneapolis * Accessibility/Interior Design Representative
University of Minnesota, Dept. of Design, Housing & Apparel - Adjunct Profetsor
Wildeme~ Inqui~/* Board of Director;
Sister Kenny In~itute Center for Asii~Ive Rehabilitation - Advi~oe/Council Member
Minnesota Gerontological Sociely - Member
Access Resource Netwa~ - Member
Residential Projects (In alphabetical order)
John and 8elh Bmdemus Reeidence Access~le Renovation
New Brighton, MN 2200 Square Feet
Spring Preview 1992, Showcme Home Universal Twin Home
Buildem Amxiaflon a~ the Twin C'~ie~ 1300 Square Feet
Canlin Calmmaion
Dr. IMIIMI'MM ~ Oe~r Addition, Interkx Design
Cad and Margaret Chri~en~on Rmidence Acc--~ible Renovation
Fridley, MN 2000 Square Feet
· ·
Il Il
nn
·
Residential Projects (continued)
Spring Preview 1993, Showcase Home Accessible New Construction
F F.C Construction 4200 Square Feet
2765 Niagara Lane
Plymouth, MN
Rod an~ Nan~,~er Residence Four Season Porch A~ition Design
E~en Prairie, MN 400 Square Feet
Jan and Bruce Gilbe~son ~idence Accessible Spa Modifications
Roseville, MN
Sally Heule Residence Condominium Rem~el
Edina, MN 1000 Square Fee~
Richard and ~hel Hollinb~ Residence Stair ~ff In~allation & Proje~ Managemem
Edina, MN
Chad~ and Linda Homing Residence Acce~ible N~ Const~ion
~d~er, MN 1800 Square F~
St~ Johnson ~id~nc~ Acc~ibl~ N~ Con~ion
LeCent~r, MN 3400 Square Fe~t
Car~ K~nnedy ~idenco Acce~ible M~ific~i~s
Minn~pdis, MN
El~nor Lage~u~ ~id~ Acc~ible ~i~s
Minnetonka, MN
Je~ and R~e M~e ~e~ ~c~ible N~ C~i~
Sta~, MN 25~ Square Fe~
CP ~il:
· ~ and ~ P~ ~c~i~e
Br~ Pa~, ~- 16~ Square F~
J~ and C~le ~ ~~ ~c~i~e T~n H~
C~ ~, ~ 17~ Square F~
Fr~ ~ ~e ~ ~~ Stair Uff In~all~i~
~ St~ I~m:
Bob and ~ ~ing
Brained, MN 35~ Square
Jeff and M~ne Skdd ~~ A~c~ible N~ C~i~
H~, MN 22~ Square
.
Roark Kramer Roscoe
DESIGN
:929 Fo~ .,\~enue ~ou~, Mirme~polis. MN 55408 '~22-~200
Noveml~er 1. 1994
Sarah Betlefuil
Administrative Analyst
City of New Hope
Dear Sarah:
Thank you for gMng our firm the opportunity to meet with you and discuss our
experience in d.,esigning accessible housing. After our meeting I visited the site
and looked around the surrounding area, so now I have some feeling for the
context of the proposed project.
Roark Krarner Roscoe Design proposes an architectural fee of $3,600 for the
following scope of work:
1. meet with City staff to discuss the twin home project.
2. produce a marketing design
3. Produce construction drawings and complete specifications for bidding,
appraisals, public agency reviews, inspections department building
permit approvals
4. Construction observation on a twice-weekly basis from placement of
footings t~ough interior trim installation; once a week before and after
those procedures, ar~ as required by coordination with contractor.
One of.the twice.weeldy site visits could be coordinated with a once-a-
week job meeting, se~ at a pre-eetal3#shed time (sucfl as 9;00 am. every
Wednesday) with yourself and t~e corm'actor to discuss ~ progress.)
5. Meet witl~ buyer at whatever occasiofis required to determine special
needs for tile ~ units basecl on tfle owners requirements
6. Meet wi~ buyer for ~ materials selections.
I would present tttree concep~ proposaJs for your review and selection before
riately-scale~l scltematic floor plans, site plan, description of materials, F'~yfirst
Avenue allgllllll~ Averlue elevatiorts am:la perspective sketch, one copy of
the skel~t ~ wittt color, the otber copy at 8112'x11' size for copy
duplicatk:~ IIIIIIIte for yo~ use. Duplicate reduced-size copies of the floor
plans, sll Illlt'al~l elevalion~ would also be Prel:mred for your use. The floor
plans world imlcale ~ r~ dimemions.
This project is of great interest to me, an opportunity to design a unique dwelling
environment witttin ttm spectrum of Ix)using tl~at hes been the t)asis of our firm's
practice.
Sincerely,
Robert R(~coe
Roark Krame~ Roscoe 0esign prov,des architectural services in cles~jn,
construction ~lrawings and specifications, construction observation and other
related services for a wide range of building types and for a diverse clientele.
Housing design is a major aspecl: of our practice. Roark Warner Roscoe Design has
designed a wide variety of housing units, including historically-designated
houses, townhous~% brownstone apartment building renovation, artist studio
residences, private r~idences in remote rural settings, mixed-use: apartments
adore storefront commercial shops, and others.
Most of our housing work involves city-based non-profit community housing
organizations producing single-unit, duplex, and multi-unit housing for affordable
income buyers, using government-assisted financing and coordination.
In the past 15 years our clients have included the Minneapolis Community
Development Agency, Urban Ventures Corp., Rykodisc, Minneapolis Television
Network and many community housing groc~ps: The Whittier Alliance, Seward
Redesign, Powderhorn Community Council, Artspace, Project For Pride in Living.
References:
3201 21st Avenue South, Minneapolis
Handicap-accessible house
3304 25th Avenue South
Handicap adaptable house
Powderhorn Communib/Council Glenn SamlTson 724-150~
Cupola Condominuirns
Minneapolis
historic restoration of 1870s. house; design of three new carraige house units
Whittier Alliance Lisa Kugler 338-8494"
'Kuqler's new work ohone
Healy Block Houses, Healy Historic District
Minneapolis
Restoration documents for 3 single unit houses
Minneatmlis Community_ Dev--_ ent
Aaencv CYnthia Lee 673-5266
Artspac~
7 housing MlY, lgtUres for artists' studio housing
Will LaW 339-4372
House rehal~ on Nicollet Island
David Hert~0rl 673-9314
Il
Ada _ntab~.lror- Hlndicannmi
~04 ~th Av~nu~ ~ Minnnpoih
Dam of ~attzma~l: 1994
(2)Produce a mar]ce~ino d~si~n for ~ho sit~.
Do~i~ will i~cl'~: ~ron~ clcv~i~;~, FI~O~
O -- 2 hour ~e=tods =onsis~n~ of I hr./15 min.
~buuL th~ vaLiabl~ iizvulv~d wiLl~ ~11 a:~l~s~CL~ of
Tha~ you rot your consideration.
Charl~l P. Braun
~UD & U~:~ BROOK~ 454-~33 ~AGAN
DO~ & 3EAN W~R ,I5g-3~ q~ COTTAGE C~O','"
JEFF ~ARFER/REN~ ['F, RSSON 730- ]7~7 MADf,EWOOD
GARRY & MA~Y KINNEY- 777-6133 OA~DAL~
EMMET & PAT KUKT,OCK 4~2-B2~
EARr, & VIRGiNiA wICK 730-6831
~OG=R & COLLEEN KUNU~ 450-7880
~RUCE & MARY ANDRZEJESKI 1-507-64~-23~6 ~ORTNFI~LD
VANN KRANZ & SI.t~LLY OWEN-'' 45]-962]
BRIAN & f, INDA GARRICK-' :-' '/3~-t823 WOODBURY
~ EDA
REQUF~T FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
By:Management Assistant By: [ / 7
RESOLUTION CALLING FOR A/CLOSED MEETING OF THE ECONOMIC
DEVELOPMENT AUTHORITY IN A~D FOR THE CITY OF NEW HOPE AUTHORIZED
BY MINN. STAT. {}471.705 TO DISCUSS LITIGATION/SETTLEMENT STRATEGY ON
EMINENT DOMAIN PROCEEDINGS REGARDING 5501 BOONE AVENUE NORTH
The City Attorney has requested that a closed meeting of the Economic Development Authority
be conducted after regular business is completed to discuss litigation/settlement strategy on
eminent domain proceedings regarding 5501 Boone Avenue North. The attached resolution
authorizes a closed meeting and staff recommends approval of the resolution.
Re~rlew: Administration: Ftrmrme:
RFA-O01 ~
EDA RESOLUTION NO. 94-
RESOLUTION CALLING FOR A CLOSED MEETING
OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF NEW HOPE
~UTHORIZED BY MINN. STAT. §471.705 TO
DISCUSS LITIGATION/SETTLEMENT STRATEGY ON
EMINENT DOMAIN PROCEEDINGS REGARDING
5501 BOONE AVENUE NORTH
WHEREAS, Minn. Stat. §471.705, Subd. l(d) authorizes and
permits the Economic Development Authority in and for the City New
Hope (hereafter EDA) to hold a closed meeting to discuss EDA issues
and information protected by the attorney-client privilege, and
WHEREAS, the EDA commenced or has been made a party to a
lawsuit or been threatened with litigation which has presently
activated its right under the referenced statute to hold a closed
meeting, and
WHEREAS, specifically the EDA is a party to a lawsuit
commenced pursuant to Minn. Stat. Chap. 117 identified as Hennepin
County District Court File No. CD - 2290 for the purpose of
determining whether an award of damages for the taking of property
located at 5501 Boone Avenue North, and
WHEREAS, a closed meeting of the EDA is necessary to consider
a settlement offer for presentation at a pre-trial/settlement
conference scheduled before Judge Andrew Danielson on November 15,
1994, and to consider various legal strategies for the continued
prosecution or defense of said action.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of New Hope as follows:
1. That a closed meeting of the Economic Development
Authority in and for the City of New Hope shall be held
on November 14, 1994 immediately following the
adjournment of the regular meeting of the New Hope City
Council, or adjournment of the regular meetings of the
New Hope EDA or HRA in the event said public bodies have
a regularly scheduled meeting on said day, at the New
Hope City Council Chambers.
2. That the purpose of the meeting shall be the discussion
of settlement alternatives and prosecution/defense
strategies in connection with litigation of Hennepin
County District Court File No. DC - 2290.
3. That said meeting shall not be open to the public.
4. That the New Hope City Clerk is hereby directed to tape
record the closed meeting and preserve the tape recording
for a period of two years from the date of the meeting.
5. That the New Hope City Clerk shall prepare a written roll
of the members and all other persons present at the
closed meeting and make said roll available for public
inspection upon adjournment of the closed meeting.
Adopted by the New Hope City Council this 14th day of
November, 1994.
Edw. J. Erickson, President
Attest:
Daniel J. Donahue, Executive Director
CORRICK & SONDRALL, P.A.
ATTORNEYS AT LAW
STEVEN A. SONORALL LAVONNE E. KESKE
~C~A~L a. ~^~LEU. Edinburgh Executive Office Plaza
W~LUA. C. S~.A~T 8525 Bdinbrook Crossing
Suite ~203
Brookly~ Park, Minneso~ 55443
TELEPHONE (612) 425-5671
FAX (612) 42~5867
November 9, 1994
Mr. Daniel d. Donahue
City Manager
City of New Hope
4401Xylon Avenue North
New Hope, MN 55428
RE: North Ridge Care Break Adult Day Care Center Condemnation
Our File No: 99.53010
Dear Dan:
I would like to discuss the referenced condemnation matter at a
closed EDA meeting.
Please find enclosed a proposed Resolution Calling for a Closed
Meetin§ of the Economic Development Authority after close of
regular business of the November 14, 1994 Council meeting. This
matter is proceeding to trial. A pretrial conference is scheduled
for November 15, 1994 before Judge Andrew Danielson to consider the
issues stated in the Order Setting Pretrial/Settlement Conference,
a copy of which is also enclosed.
Also enclosed is relevant information the EDA may want to review
prior to our closed meeting:
1. My October 5, 1993 letter submitted at a prior closed
meeting to consider an appeal from the Commissioner's
Award;
2. A danuary 7, 1993 Certification from Brad Bjorklund, the
EDA appraiser, establishing property value at $141,400;
3. A September 7, 1993 letter from William Warner, the
appraiser for the property owner, establishing property
value at $371,800;
Mr. Daniel J, Donahue
November 9, 1994
Page 2
4. A September 15, 1993 letter I submitted to the
Commissioners in support of a $141,400 payment for
damages to the property owner from the taking;
5. A November 2, 1993 letter from the City Engineer
indicating soil correction costs between $130,800 and
$598,900.
The main purpose of the meeting with Judge Danielson on November
15th is to determine if the case can be settled.
Basically, as in the case with most condemnation cases, this matter
boils down to the amount of money the EDA is required to pay the
property owner for taking the property. We have a current exposure
of $277,177.00. This is the amount of the Commissioners' award.
We have paid the property owner $208,382.75. This payment equals
75% of the Commissioners' award ($207,882.75) plus $500 in
appraisal fees. ' We still owe the property owner the remaining 25~
of the award or $69,295 plus interest of $4,538.09 through November
14, 1994, for a total of $73,833.09. Interest is accruing at a
$5.77 daily rate. In other words, if both parties decided to drop
their appeals, a payment to the property owner of the $73,833.00
plus accruing daily interest after November 14, 1994 would settle
this case.
I find it' very difficult to accept the Commissioners' award and
agree to pay such a high price for this property in light of its
significant and costly soil correction problems and its industrial
zoning classification. The legal basis for determining damages in
a condemnation case is simply what a willing buyer would pay a
willing seller for property with knowledge of all relevant facts
relating to value. The property owner also has the burden of proof
to establish the fair market value of his property. In order for
the property owner to win this appeal and establish a market value
of $371,800, he will need to show that the property in
probability would be rezoned for residential purposes and that a
developer would pay this price regardless of soil conditions
existing at the site.
This property owner has owned the property since the early 60's.
The fact that it has remained vacant and unimproved for 30 years is
prima facia evidence that the site is not buildable. This should
be strong evidence to suggest a high density residential project is
not feasible for the site regardless of its proximity to other
residential developments. The soil correction problems brought out
in the City Engineer's November 2, 1993 tetter make that argument
Mr. Daniel J. Donahue
November 9, 1994
Page 3
even more convincing. Basically, the soil correction costs should
constitute a dot~r for dollar reduction in the market price of the
property. Utilizing the property owner's appraisal amount of
$371,800, the market value of the property for a typical 3-story
apartment complex would be $40,900 if the City Engineer's $330,900
minimum soil correction costs for an R-4 building are accurate. As
you can see, the soil correction costs to render this property
buildable significantly affect the value of the property.
The EDA has previously offered to buy this property for $240,000
(see the City Manager's July 10, 1992 letter). Based on
Bjorklund's appraisal of $141,400 and the extensive soil correction
problems associated with this property, a $240,000 settlement offer
is extremely generous, especially in light of the fact we have now
incurred Commissioners' fees of $5,887.00 plus costs, attorney's
fees and appraisal fees in addition thereto. The draw back,
however, for pursuing this litigation is our exposure to payment of
the property owner's costs, appraisal fees and expert witness fees
even if he is not the "prevailing party" (See Matter of
Minneapolis Community Development Agency, 447 N.W.2d 891 (Minn.
App. 1989)).
In conclusion, I feel confident we would be successful in our
appeal to establish that fair market value for the subject property
should be no more than $141,400. Nowever, there is always a risk
that a court or jury will disagree with our expert witnesses
despite the fact they seem to be the most credible witnesses. I
would refer you to the MPRS lawsuit as an example of that
phenomenon. We have previously offered $240,000 for this property.
I would limit any settlement offer to that figure at this time. It
is my understanding that the dollars for the acquisition of this
property will come from either CDBG funds or reserve TIF funds and
certainly TIF funds can be used for soil correction problems that
exist at the property.
Sincerely,
Steven A, Sondrall
slw3
Enclosures
cc: Valerie Leone (w/eric)
PS: Val, this is a closed meeting agenda item. As a result, only
the resolution should be enclosed in the agenda made available
for public review. SAS
October 5, 1993
Daniel J. Donahue
City Manager
City of New Hope
4401Xylon Avenue North
New Hope, MN 55428
RE: North Rtdge/Carebreak Adult Day Care Center Condemnation
Our File No: 99.53010
Dear Oan:
Please find enclosed a proposed Resolution calling for a closed
meeting of the Economic Development Authority. The meeting is
necessary to discuss litigation/settlement strategy in connection
with the eminent domain proceedings on the Doyle and Lee Bros.
property. As you know, these are the properties being acquired to
construct the Carebreak Adult Day Care Center.
On September 9th and loth, 1993, hearings were conducted to
determine damages resulting from the taking of the proDerties.
Enclosed are the Award of Commissioners regarding said hearings.
The awards are as follows: Doyle property - $277,177.00; Lee
property - $56,100.00. Both parties were also awarded appraisal
fees of $500.00, therefore that amount should also be added to the
above figures.
Regarding the Lee award, ! am not recommending an appeal. As you
know, we used Brad Bjorklund as our appraiser in this matter.
Bjorklund's opinion for damages on the Lee property is $56,000.
The appraiser for the Lee Bros. estimated damages at $90,000. As
you can see, the Commissioners adopted the B~orklund appraisal
awarding the Lee Bros. only $100 in excess of our appraiser's
opinion of damages.
The award for the Doyle property does, however, cause some concern.
Bjorklund's opinion on damages is $141,000.00. The appraiser for
Mr. Daniel J. Oonahue
October 5, 1993
Page 2
Mr. Doyle estimated damages at $371,800.00. The award is
$94,623.00 below the property owner's appraisal, but $136,177.00
above our own appraisal submitted by Bjorklund.
[ spoke with Commissioner Newsome regarding the high award.
Basically, the Commission concluded the highest and best use of the
Doyle property is R-4 or R-5 multiple residential, not industrial.
They came to this conclusion because the Pheasant Park apartment
complex is 500 feet north of the Doyle property and the North Ridge
Nursing Home complex is right across the street. Therefore, they
accepted the property owner's position that it is highly probable
the City would allow a rezoning to utilize the Doyle property for
a multiple residential use despite the fact it is bordered on three
sides by industrial property and located in an identifiable
industrial park.
I take some exception to their logic. Specifically, the Commission
has not properly analyzed the costs associated with the
construction of a multiple residential facility on the Doyle
property. These costs are connected to both soil correction and
administrative and legal fees necessary to obtain a rezoning
assuming the City would allow R-4 or R-5 zoning for this property.
The soil correction costs are the most troubling issue. Basically,
these costs might be anywhere from $50,000 to $300,000 depending
upon the type of building constructed upon the site. If we buy
into the Commission's logic and assume that an apartment complex
will be built on the site, like the Pheasant Park complex 500 feet
to the north, significant soil correction costs will be incurred.
These costs will reduce the fair market value of the site dollar
for dollar. Obviously, if a single story industrial building were
constructed on the site, the soil correction costs would be much
cheaper. Currently, Bonestroo's office is preparing an analysis of
construction costs for soil correction due to the poor soils on
that site. When that analysis is completed, we wilt be in a better
position to gauge the reasonableness of the Commissioners' award.
If Bonestroo's estimate of soil correction costs comes in Iow, say
$50,000, the present award may not be unreasonably high. If the
Property is buildable with corFectable soil, the square foot value
of t~e property may be as high as $2.00. The site is basically
148,800 square feet. Multiplying that number by $2.00 gives us a
value on the property of $297,600.00. You will recall that we paid
$2.00 a square foot for the Custom Mold property adjacent to and
Mr. Daniel J. Donahue
October 5, 1993
Page 3
west of the Dcw le property. Therefore, considering a $50,000 soil
correction cost, the fair market value of the property would be
$247,000.00.
If we appealed this case to argue about $30,000, we may quickly
reach the point of diminishing returns in that court costs and
legal fees may be $10,000 on the low side and $20,000 on the high
side.
However, if the cost for soil correction is in the $100,000 to
$200,000 range, the case should be appealed and we should try the
matter unless the property owner is willing to significantly reduce
his settlement price.
I recommend that we discuss these issues with the EDA at a closed
meeting on October 11th, 1993. It is my understanding that the
award will be filed on October 5th. If the award is filed on
October 5th, we will have 40 days from said date to appeal this
matter to District Court. If we appeal the matter to District
Court, there will be a trial de novo on these damages issues.
Please bear in mind, however, that we run the risk of having to pay
the property owner's appraisal and expert witness fees if the
property owner is successful in District Court. Unfortunately, the
eminent domain law does not provide for the property owner to pay
our expert witness and appraisal fees if the EDA is successful.
Please contact me if you have any questions.
Very truly yours,
Steven A. Sondrall
slt3
Enclosures
cc: Kirk McDonald, Management Asst.
Valerie Leone, City Clerk
bps: Val, this letter is not for publication in the regular agenda
packet nor should it be made available to the public in connection
with the regular agenda for the October 11th meeting. SAS
I certify to have personally inspected the ~ubject property on Jan~y 7,
1993, after offering the owner, Melvin Doyle the opportunity to accompany me
and that to the best of my knowledge and belief the statements contained in
subject to the "Certification, Assumptions and Conditions" herein set forth.
In addition, this report conforms with and is subject to requirements of the
Code of Ethics ard Stardards of Professional Practice of the Appraisal
Institute.
Employment in and compensation for makLng this appraisal are in no way
contingent upon the value reported. I certify to have no interest, either
present or contempla~, in the subject property.
It is my opinion that as of January 7, 1993, the market value of the
subject property assuming subsoils are not contaminated is:
{ C~E ~ ~ (~{E ~ PC~R ~ DOLIARS (141,400)
{
Brad ~orklund, MAI, SRA
MN License No. 4000377
WILLIAM C. WARNER & ASSOCIATES
Real Estate Appraisers
Box One
Wayzata, Minnesota 55391
(612) 473-0313
September 7, 1993
Mr. Melvin J. Doyle
10625 34th Avenue North
Plymouth, Minnesota 55441
In re: Taking by eminent domain of your property at 5501 Boone Avenue
North, New Hope, Minnesota 55428.
Dear Mr. Doyle:
At your request I have personally inspected the above
referenced
property for the purpose of estimating its market value as per the
definition of market value and subject to the underlying assumptions
and limiting conditions as found in the attached appraisal and
analysis. It is my understanding that I am to appear at a commission
hearing for the purpose of determining the value of your property.
Analysis of your property has indicated that its Highest and Best Use
is for an adult day care center. This use is R-5 zoning which is to be
changed by the city of New Hope from the existing I-1 zoning which is
an industrial type zoning. Highest and Best Use is defined in the
attached appraisal and analysis.
After giving consideration to a great deal of data I have arrived at an
estimated market value of $2.50 per square foot for your property.
Thus: 148,718 s.f. ~ $2.50 per square foot is rounded to $371,800 as
the estimated value of your property.
Thank you for this opportunity to be of service to you. If I may be of
additional assistance, please feel free to call me.
Yours very truly,
William C. Warner
Real Estate Appraiser
Certified General Real Property
Appraiser Number 4000032
wcw/j o
O. Jerome Newsom
Attorney at Law
200 South Si:th St.. Suite 215
Minnen~<:l i s. MN 55402
C)&iFe Hichey
[:,t i f~ Realty
140,> ~uuth Lilac Drive
Min~eapol i s, Mt4 55410
R. D~vid L~nge
55,.:):s Popano [,~ ire
Mi~l')etot~ ~. MN 55342
'....(ti ~ [ ~ ia NO: -.L'
("UI-'~U811( tc, the Co~15SlOn'5 instruction~ at tl~e ~. lo~e of ora)
re%Iii,on) <)l) September 9tii, 1093 in connection with the )efefenced
matt. em', p)e~'~e accept thi~ letter ~s the City of New Hope"~ fin~)
al gume~il if~ connect ion ,,~i'th the he~-]in proceeding.
the property owner $141.4,.~O.,:',0 b~sed on said
i'p<.ated ~r, an ~dent~f~a~ie ~dustl ~al park surrounded by other
~['i~,J~t ~. iA~ pr.O[,e'Yr i~5. _ ~.C. ~qe s.';'u~
Nuts i~lg, HOIT~ ~S 1 ocat ~-d._ a<.i'O~S_ t~'a. ,, _ ~ ~ ~ eet '~ r c,m t he subj e< ~. t,o ~he'
agprc.',~ma~e]? 3.42 .acre?
The owners appraisal ind~':ates the property is zomewha~ sma'ilar at
48. 71.3 .sq. ft. ,. see Warner appra~ ~.:~] p,20~
eporE~d ~o have poor sub-so, i at dep~h~ .3¢ ~ ~ to ;'} feet below
grade. , see March 13, I')"2C,
' % ]L;L' ...
' What ~ -~ the ,':-, , :=' - % k i',Oer-L ', ~ ~, -;'F~'
The commission should a'w~t.:d ;h<- p~.~,pert'u owJ;er ~4'. ,.:,]~,> based
p,'oper~y. (see Biorklund, appra~s:3] E;F'...~,s'*~) ~ and u~i )~ze, ~he most
accura(.e comparable sales data in a, r~vir]g FiT value using the
market value aDproach.
prope¢ fy, the same as ti~e subject ~. f,i i are l,"':¢~ted ,~, ~ r:c- -' t , ,c.f
re',a~ ',~'eJy ;'ecer~ sales
Furthermore, BjOr'F'!L~r]d ma~e.:. : ~asof~able ~dj~'m~c,T ~
~]orklund appraisal pp.S--i ~ ). He is t",e only apor~ ss~ ;.c, C,:>f~s
ti~e )nfer'ior so~ I condit ion OT the ';:uP iec'.t :'educing the value
the compar~.~es accord~q~y =r,u .... , :. .. ,}~}~ .,.
:uon:[ruct~on of ai'~ adult da,' care
for L'riowiedge .~b.:'ut the Cit ~'-:= pr .z]
"The Hi,jhest ~,j ~ ,j~.~
September 1 5. 1'593
Page 4
adjustmenzs are $2.63 and $2.53 for _~n average rate ,.':.f .~2.58 per
sq. ft. or 49.~ higl~er than the industrla] comps.
,, ~ ea~/ to see Warner used the resident 1al comps ~nd
comp]etely ~ 9n,:.red the industr]a~ comps despite the fact the
proDer~y ~s zoned ]r~dus~r' ~a] ~nd (ne only reasof~ tot ~ L,r'oD~ed
zc, n~n9 change ~s due to the 'Zi~y pro~ect for which the property
attached Minnesota Supreme CoDI t
A.t the very least , Warner's vatuat ~on must be cut ~.~.' :~.,3~
h~s ~ndustr~ai comp average of $1.74 per' sq. ft. ,a c]os~ review
h~s industr i~i comps aisc shows ac, pra~sal errors ~n ~is
rendering his opinion o: little value, r:~rst, he ne::, given no
pr~,:es for t ~me cor-,clud~,',,~ ~ c% ~i"~rlu.~l ~nf~t~c.n rare re;IL.ill 83
ub~'ard &..ljustmeqt . ~ Le? ~eve the '.::.mm~ ~:i.j,~ .can ta; ~ ~:.,:.::"_
~t ~.~ ~.. :..~r t~i~t ":, ~it~ '_','~t-i IFi;J~J~~ i la ~ -[I'~'L ~'~ ; I ~. '':
bcc' Brad Bjork]und
Daniel d. Donahue, City Manager
Kirk McDonald, Administrative Assistant
4401 Xylon Avenue North New Hope, Minnesota 55428 Phone: 533-15 21~/~
~Zy ZO~ Z992
Mr. Mel Doyle
10625 34th Avenue North
Plymouth, MN 55441
Subject: ACQUISITION OF PROPERTY AT 5501 BOONE AVENUE NORTH IN
NEW HOPE
Dear Mr. Doyle:
This letter is intended to serve as a brief follow-up to the
meeting we conducted on Tuesday, July 7th, regarding the City's
acquisition of your property at 5501 Boone Avenue North in New
Hope for the development proposed by North Ridge and Senior
Outreach Services.
As I indicated, the City Council desires to participate in the
proposed development by North Ridge and Senior Outreach Services
and finds that said development would greatly benefit the City
and its citizens. The Council has directed me to facilitate the
acquisition of the property. The property can either be acquired
through a direct purchase or through other means available. I
previously have indicated to you that I am willing to recommend
to the Council and the EDA that we split the difference on the
two appraisal amounts and settle on a direct purchase price of
$240,000. The City finds that this is a reasonable offer, taking
into account the existing soil problems and decreasing market
value.
At our meeting and through previous correspondence, I indicated
that if this offer is not acceptable to you, the EDA has directed
me to acquire your property by an eminent domain or condemnation
Proceeding. Acquisition of the property by eminent domain was
approved by resolution at the June 22nd New Hope Economic
Development Authority meeting.
Minnesota Statute §469.101, Subd. 4, gives the EDA the authority
to acquire the property by power of eminent domain under
Minnesota Statute Chapter 117. Minnesota Statute §117.042
authorizes the City to utilize the "quick-take" procedure, if it
is necessary, to acquire possession of the property prior to the
conclusion of the eminent domain proceedings. You should explore
FamilyS~ledCi~'~~ForFamilyLiving
the alternatives of direct purchase, eminent domain or
condemnation with your financial and legal advisors, as there are
certain tax advantages and disadvantages to each procedure.
"Friendly" condemnation merely refers to the fact that the buyer
and seller have agreed upon a mutual sale price. If an agreement
or price is ngt reached, the price is established by a 3-person
commission within the condemnation proceedings. The property
owner has the burden of proof to establish the value of the
taking. If the property owner is not satisfied with the award at
the Commissioners' hearing, an appeal process through the court
system is available.
As I indicated earlier, I hope you will strongly consider the
above purchase offer. The City cannot wait any longer and must
begin the development process. All final agreements rest with
the City Council and the Economic Development Authority as to
actual offer, purchase, and acceptance. Also, this offer is
contingent upon the City formally entering into a development
agreement for development on your praperty.
After you discuss the options available with your advisors,
please inform me how you would like to proceed with this matter.
Sincerely,
Daniel -J. Donahue
City Manager
DJD/lb
cc: City Council
Chuck Thompson
Steve Sondrall, City Attorney
Project File #493
NOV 0
--
Thomas E Angus. PE A Rick ~r,m~dt PE Leo M
November 2, 1993
Mr. Daniel Donahue ~~': i~'' f
Ci~ of New Hope
4401 Xylon Avenue N.
New Hope, MN 55428
Re: North Ridge Adult Daycare Center (5501 Boone Avenue)
City Project No. 493
Our File No. 34158
Dear Mr. Donahue:
This letter updates the October 11, 1993 letter regarding soil correction work required at
the site. A one story industrial type building has been included in the review in addition
to the proposed building and a three story R-4 type building. The review was based upon
the geotechnical report prepared by GME and the proposed site plan prepared by L.W.
Samuelson. The additional construction cost to construct a building on this site (5501
Boone Avenue) versus a site which has good subgrade soils for the proposed two story
building, a 3 story R-4 type building and a one story industrial type building is summarized
below:
One Story Proposed Two R-4 Three
I-1 Building Story Building Story Building
(30,000 Sq. Ft.) (30,000 Sq. Ft.) (30,00.0 Sq. Ft.)
Minimum $130,800 $229,500 $330,900
Maximum $432,500 $497,500 $598,900
The cost estimates are based on the following assumptions for the different building types:
Item One Story Two Story_ Three Story_
Building Size 30,000 SF 30,000 SF 30,000 SF
Bay Size 40' x 42' 30' x 32' 30' x 32'
Story Height 16 Feet 12 Feet 12 Feet
Exterior Walls Precast Brick w/block Brick w/block
Interior Walls None Studs w/gypsum Studs w/gypsum
Floor Live Load 125 Psf 50 Psf 50 Psf
Partition Load None 20 Psf 20 Psf
2335 West Highway 36 · St. Paul, MN 55113 · 612-636-4600
Mr. Daniel Donahue, City of New Hope
Page 2
November 2, 1993
Other assumptions apl21icable to all buildings included:
Floors at first and second level - precast plank with 2" topping
Roof - steel bar joists with metal decking and ballasted roof
12.75" cast-in-place pipe piles, 65 feet long, 40 ton capacity
Subcut parking lot and driveways 3 feet, add geotextile fabric and granular fill
The following is a summary of additional costs anticipated to develop the site for a one
story industrial type building:
Estimated
Item Cost
Piles: 170 piles x 65 ft/pile x $20/1f $221,000
Structural floor: 30,000 SF x $4.00/SF 120,000
Excavation of parking lot: 9,000 CY x $4.00/CY 36,000
Granular fill: 7,500 CY x $5.00/CY 37,500
Geotextile fabric: 9,000 SY x $2.00/SY 18,000
Total estimated cost $432,500
The following is a summary of additional costs anticipated to develop the site for the two
story building:
Estimated
Item Cost
Piles: 220 piles x 65 ft/pile x $20/lf $286,000
Structural floor: 30,000 SF x $4.00/SF 120,000
Excavation of parking lot: 9,000 CY x $4.00/CY 36,000
Granular fill: 7,500 CY x $5.00/CY 37,500
Geotextile fabric: 9,000 SY x $2.00/SY 18,000
Total estimated cost $497,500
Th'e site has been rezoned to R-4. According to Doug Sandstad, the maximum height the
building can be constructed is 4 stories. However, in New Hope the maximum height of a
.typical R-4 building is usually 3 stories. If the building described above was increased from
two stories to three stories, the estimated additional costs would be as follows:
Mr. Daniel Donahue. C/tv of New Hope
Page 3
No~'ernber 2, I993
Estimated
Item , Cost
Piles: 298 piles x 65 fffpile x $20/lf $387,400
Structural floor: 30,000 SF x $4.00/SF 120,000
Excavation of parking lot: 9,000 CY x $4.00/CY 36,000
Granular fill: 7,500 CY x $5.00/CY 37,500
Geotextile fabric: 9,000 SY x $2.00/SY 18,000
Total estimated cost $598,900
The calculations for this cost analysis are attached for your information.
While we agree that building should be supported on a deep foundation such as piles, the
need for a structural floor at grade would appear to warrant a closer look. In both a two
story and three story building, a conventional cast-in-place slab on grade could possibly be
used on first floor if care is taken in preparing the subgrade soils. This would reduce the
foundation cost by approximately $135,200 for a one story industrial type building and
$101,500 for the proposed two story building and a R-4 three story building. In all three
buildings, the structural floor cost would be reduced by $120,000. The total cost reduction
would range from $221,500 to $255,200.
The parking lot is another area in which the proposed corrective work should be looked at
in more detail. With approximately 10 to 15 feet of fairly good soil above the peat, we are
not sure what the benefit is of removing 3 feet of existing soil and then installing a
geotextile fabric and granular fill. While some corrective work may be necessary, it is likely
to be much less than the estimated amount. If half of the corrective work is required, the
parking lot and driveway corrective work would be $45,000 instead of $91,500.
If a slab on grade could be used on the first floor of the building and less corrective work
was required in the parking lot, the additional cost for the two story building would be
$231,000. For the same assumption, the additional cost for the three story building would
be $332,400.
If you have any questions on this matter, please contact Mark Hanson or myself at
636-4600.
Sincerely,
BONESTROO, ROSENE, ANDERLIK & ASSOCIATES, INC.
, ry D. Pertzsch
cc: Steve Sondrali, Mark Hanson