042693 EDA .... OFFICIAL FILE COPY
C~Y OF NEW HOPE
EDA AGENDA
EDA Regular Meeting//6 April 26, 1993
Agenda//6
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 April 12, 1993
4. Motion Approving Execution of Addendum to Assessment Agreement for Emerald
Pointe Apartment Complex, FKA New Hope Terrace
5. Resolution Authorizing Addendum to City of New Hope Development Contract for
Autohaus Addition (Improvement Project No. 467)
6. Adjournment
CITY OF NEW HOPE
4401XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
Approved EDA Minutes April 12, 1993
Meeting #5
CALL TO ORDER President Erickson called the meeting of the Economic
Development Authority to order at 11:50 p.m.
ROLL CALL Present: Erickson, Enck, Otten, Wehling, Williamson
APPROVE MINUTES Motion was made by Commissioner Otten, seconded by
Commissioner Wehling, to approve the EDA minutes of March
22, 1993. Voting in favor: Erickson, Williamson,
Wehling, Otten; Abstained: Enck. Motion carried.
NEW HOPE TERRACE President Erickson introduced for discussion Item 4,
AGREEMENT Consideration of Request by LaNel Financial Group, Inc.
Item 4 for Changes to New Hope Terrace Assessment Agreement.
Mr. Donahue stated the assessment agreement specifies a
certain minimum market value to the Emerald Pointe
Apartment complex {formerly known as New Hope Terrace).
The request by LaNel Financial Group is to modify the
assessment agreement and bring it more in line with what
Hennepin County assessors would actually appraise the
market value to the project. Springsted, a financial
consultant, was hired to review the request and report on
the advantages and disadvantages to the City and
developers. Springsted has analyzed the project and will
summarize their analysis results.
Mr. Barry Fick, Springsted Inc., was recognized and
explained their findings. He stated they first analyzed
the financial effects to the City 1} if the assessment
agreement remained in place as is and 2) if it was
modified. He stated if the agreement is amended as
proposed, there would be a decrease of $800,000 in the
total amount of funds available through year 2003 {current
expiration of the district).
Also, Springsted reviewed the actual finances of the
project to determine projected returns. In addition to
projecting the return, they projected the effect the
proposal would have on their financial situation and the
magnitude of that effect. LaNel provided operating data
for the project for 1992 which was projected forward.
Springsted found that taking all factors into
New Hope EDA April 12, 1993
Page 1
consideration the return on their equity under the current
assessment agreement would be a low positive number. The
alternative where their assessment agreement would be
modified showed the return on equity would be increased
but it is still not a high figure. Mr. Fick stated the
difficulty with doing such an analysis and projecting an
industry standard is that the industry standard is
somewhat vague, but based on the information we have been
able to use the return that LaNel would be projected to
receive throughout the life of the project is slightly on
the lower side of the range. Their analysis has purposely ·
not taken into account the possibility of what would occur
if LaNel were to eventually sell the project. The
speculation of the future market value is too indefinite
to make a judgement.
commissioner Enck inquired whether a guarantee could be
built into the agreement whereby the assessment agreement
could be artificially increased in order to cover the life
of the bond issue.
Mr. Steve Sondrall, City Attorney, stated regardless of
the assessed value, the agreement could be written to
include assurance that the tax amount is sufficient to
maintain a viable TIF district.
Commissioner Enck questioned the effect a future sale of
the property would have on the assessment agreement.
Mr. Sondrall stated the assessment agreement will remain
binding to anyone who purchases the property.
Commissioner Enck expressed his intent to approve an
amendment to the agreement with LaNel.
President Erickson initiated discussion regarding LaNel's
previous proposal to subsidize ten rental units. He
questioned whether they were willing to offer a similar
proposal in exchange for the amendment to the assessment
agreement.
Mr. Frank Lang, LaNel, was recognized and commented that
although such an offer appeared economically feasible
previously, they could not offer it now due to operation
costs.
President Erickson stated a monthly subsidy of $100 for
ten units would amount to $12,000 per year. In lieu of
the subsidy, the City would be willing to accept a
donation of $12,000 to use for human services programs.
New Hope EDA April 12, lgg3
Page 2
Mr. Lang stated the project will have a difficult time
even with the reduction in estimated market value. He
urged the EDA to not include such a condition as it is not
a matter of greed but a matter of allowing the complex to
function well.
Commissioner Williamson mentioned that Emerald Pointe is
one of the nicest apartment complexes in New Hope and she
is pleased to have the opportunity to assist the property
owners for maintenance re-investment.
Motion was made by Commissioner Williamson, seconded by
Commissioner Otten, to approve the amendment.
Commissioner Enck interjected the amended agreement should
contain language specifying an annual or semi-annual
review.
Mr. Donahue suggested that the EDA authorize staff to work
out the details with LaNel and draft an amended assessment
agreement outlining the conditions. He noted LaNel asked
for a final recommendation by the end of April. He stated
the agreement could be presented to the EDA for final
approval at the April 26th EDA Meeting.
MOTION Motion was made by Commissioner Enck, seconded by
Item 4 Commissioner Otten, tabling the item until April 26, 1993.
All present voted in favor. Motion carried.
IMPROVEMENT President Erickson introduced for discussion Item 5,
PROJECT #505 Resolution Authorizing Commencement of Eminent Domain
Item 5 Proceedings to Acquire Property at 5009 Winnetka Avenue
North (Improvement Project No. 505).
EDA RESOLUTION Councilmember Enck introduced the following resolution and
93-05 moved its adoption: "RESOLUTION AUTHORIZING COMMENCEMENT
Item 5 OF EMINENT DOMAIN PROCEEDINGS TO ACQUIRE PROPERTY AT 5009
WINNETKA AVENUE NORTH (#505)'. The motion for the
adoption of the foregoing resolution was seconded by
Commissioner Otten and upon vote being taken thereon; the
following voted in favor thereof: Erickson, Enck, Otten,
Williamson, Wehling; and the following voted against the
same: None; Absent: None; whereupon the resolution was
declared duly passed and adopted, signed by the president
which was attested to by the executive director.
IMPROVEMENT President Erickson introduced for discussion Item 6,
PROJECT 474 Resolution Authorizing the President and Executive
Item 6 Director to Execute Purchase Agreement and Lease for
Foremost Property at 7528 42nd Avenue North (Improvement
Project No. 474).
New Hope EDA April 12, 1993
Page 3
The resolution authorizes execution of the purchase
agreement and lease agreement in connection with the
Foremost property at 7528 42nd Avenue North. The
acquisition price is $450,000 and Foremost will be allowed
to occupy the property for a 2-year period commencing on
the date of the closing. Foremost is responsible for
operating expenses and real estate taxes during the course
of the rental period. They also will be allowed to remove
all machinery and fixtures from the property when the
lease expires. Foremost also is paying all past due real
estate taxes and unpaid special assessments.
Commissioner Enck stated if the City is named as an
additional insured he would recommend the policy limit be
set at a minimum of $1,000,000. He also suggested
amending the City's insurance policy to ensure that
adequate insurance is being provided and that the City's
interests are being protected.
Mr. Sondrall pointed out that execution of the purchase
agreement and lease is contingent upon receipt of the
abstract ensuring proper title.
EDA RESOLUTION Councilmember Enck introduced the following resolution and
93-06 moved its adoption: 'RESOLUTION AUTHORIZING THE PRESIDENT
Item 6 AND EXECUTIVE DIRECTOR TO EXECI~TE PURCHASE AGREENENT AND
LEASE FOR FORENOST PROPERTY AT 7528 42ND AVENUE NORTH
(INPROVEMENT PROJECT NO. 474)'. The motion for the
adoption of the foregoing resolution was seconded by
Councilmember Otten and upon vote being taken thereon; the
following voted in favor thereof: Erickson, Enck, Otten
Williamson, Wehling; and the following voted against the
same: None; Absent: None; whereupon the resolution was
declared duly passed and adopted, signed by the president
which was attested to be the executive director.
IMPROVENENT President Erickson introduced for discussion Item 7,
PROJECT 474 Resolution Authorizing the President and Executive
Item 7 Director to Sign Contamination Remediation and Right of
Entry Agreement {Improvement Project No. 474).
EDA RESOLUTION Councilmember Wehling introduced the following resolution
93-07 and moved its adoption: RESOLUTION AUTHORIZING THE
Item 7 PRESIDENT AND EXECUTIVE DIRECTOR TO SIGN CONTAMINATION
REMEDIATION AND RIGHT OF ENTRY AGREEMENT (IMPROVEMENT
PROJECT NO. 474)'. The motion for the adoption of the
foregoing resolution was seconded by Commissioner
Williamson and upon vote being taken thereon; the
following voted in favor thereof: Erickson, Enck, Otten
Williamson, Wehling; and the following voted against the
same: None; Absent: None; whereupon the resolution was
New Hope EDA April 1.2, 1993
Page 4
declared duly passed and adopted, signed by the president
which was attested to be the executive director.
IMPROVEMENT President Erickson introduced for discussion Item 8,
PROJECT 467 Consideration of Request for Extension on Development
Item 8 Contract Improvements, Autohaus, Inc., 7709 42nd Avenue
North (Improvement Project No. 467).
Mr. Donahue stated Autohaus has requested an additional
extension to complete the development improvements. The
request involves a one-year extension to complete the
front lot improvements which were to be completed by
October 31, 1992. The request also involves a 3-4 year
extension to the rear lot improvements which are to be
completed by October, 1993.
Commissioner Enck questioned the completion date for the
area north of the south property line.
Mr. Oestreich stated it should be completed within 45-60
days. He commented that the area is muddy and requires
immediate attention. He noted the contractor has
experienced problems which contributed to the delay.
The only area changed is the surmountable curb portion
which they intend to pave then landscape and install fence
to improve the front appearance. He also noted their
intent to install a new sign.
Mr. Donahue recommended approval of a one-year extension
on the front lot improvements which would require
completion by October, 1993. He noted rather than
installing bituminous curb as specified in the site plan,
Autohaus is proposing to paint striping for the display
area.
Commissioner Enck noted that he is uncomfortable with a
four-year extension on the development for the rear
portion of the lot.
Mr. Tom Oestreich, Vice President of Autohaus, pointed out
that the site has significantly improved compared to its
previous condition. He stated due to the economic
recession in the automobile industry they have been unable
to fund the entire development.
Commissioner Enck proposed to extend the contract for the
front portion of the lot until October 31, 1993, and the
rear portion of the lot until October 31, 1994, with the
understanding that if Autohaus is unable to complete the
improvements for the rear lot by October 31, 1994, a
New Hope EDA April 12, 1993
Page 5
letter should be submitted to the City by March, lg94,
with an explanation and request for extension.
Mr. Oestreich acknowledged acceptance of the EDA's terms.
He stressed the fact that the area has already been
dramatically improved.
Mr. Donahue next informed the EDA that Mr. Boettcher has
requested that the City release the $26,300 certificate of
deposit to fund a portion of the work. He did not
recommend releasing the financial security since it
secures performance under the Development Contract. He
stated since Mr. Boettcher is ahead of the loan repayment
schedule by $23,000, the City could refund this amount to
Autohaus.
MOTION Motion was made by Commissioner Wehling, seconded by
Item 8 Commissioner Otten, approve the extension request {October
31, 1993 for the front lot improvements and October 31,
1994 for the rear lot improvements) on Development
Contract Improvements for Autohaus {7709 42nd Avenue
North); and authorization to return advance loan payments.
All present voted in favor. Motion carried.
Commissioner Wehling noted the lapse of time between
correspondence to Autohaus and questioned whether this is
typical.
Mr. Donahue indicated staff frequently had verbal
communications with Mr. Boettcher; the written
correspondence serves as formal documentation.
ADJOURNMENT Motion was made by Commissioner Wehling, seconded by
Commissioner Otten, to adjourn the meeting. All present
voted in favor. The New Hope EDA adjourned at 12:15 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA April 12, 1993
Page 6
cub I
~ REQUF~T FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager EDA
4-26-93
Kirk McDonald Item No.
By: Management Assistant By: 4
/
MOTION APPROVING EXECUTION OF ADDENDUM TO ASSESSMENT AGREEMENT
FOR EMERALD POINTE APARTMENT COMPLEX, FKA NEW HOPE TERRACE
Enclosed is a revised Addendum to the July 28th, 19.86, Assessment Agreement in connection
with the New Hope Terrace Complex, now know as Emerald Pointe. The Addendum was
revised after staff met with the property owners on April 19th.
The Addendum includes the following changes:
1. It reduces the minimum market value from $6,000,000 to $5,000,000.
2. It eliminates the arbitrary 2% market value increase on the condition that the
owners pay any debt service deficiencies related to the TIF bond issue in the
event a tax capacity change' occurs to cause a problem.
3. In consideration for the reduction in market value of the property, the Addendum
requires Lang-Nelson to pay a yearly fee of $10,000 to the EDA. This money
shall be earmarked for low and moderate income housing projects.
4. The Addendum requires Lang-Nelson to provide the City with temporary
construction easements reasonably needed to reconstruct the Soo Line Railroad
Bridge and do all street, sewer, utility, and drainage projects deemed necessary
by the City.
Staff recommends approval of a motion authorizing execution of the Addendum to the
Assessment Agreement.
MOTION BY [xJ'~ffJ~~ SECOND BY
J
TO: /ta4 $/0,0*W
-~ ~- ' I--I
RFA-O01
APR--21 --~ WED I 4 : 5~ CORR I CK ~ SONDRALL P . 02
April 21, 1993
Mr, Daniel J. Donahue
City Manager
City of New Hope
4401Xylon Avenue North
New Hope, MN 56428
RE: Addendum to Assessment Agreement for Emerald Pointe
Apartment Complex, f/k/a New Hope Terrace
Our File No: 99.11109
Dear Oan:
Please find enclosed a revised Addendum to the July 28th, 1986
Assessment Agreement in connection with the referenced property.
The addendum was revised per our meeting with the property owners
on April 19th.
The Addendum still reduces the minimum market value of Section 2.01
from $6~000,000 to $5,000~000. However, it eliminates the
arbitrary 2~ market value increase on condition that the owners pay
any debt service deficiencies related to the TIF Bond issue in the
event a tax capacity change occurs to cause a problem. It also
waives thi $10,000.00 annual payment to the extent real taxes
exceed $270,000,00.
These are the changes made per the discussions in the meeting, The
EDA should authorize by motion execution of the addendum if they
are in agreement with it at the April 26th meeting.
Please contact me if you have any further questions.
Very truly yours,
Steven A. Sondrall
slw
Enclosure
cc: Kirk McDonald (w/eric)
Valerie Leone (w/eric)
Larry Watts (w/ant)
· ~PR--2 1--~ ~E~ 14 ~ 54 CORR I CK & SOH~R~LL P. 0~
CO~,[CK & SONDRAU.
~ ~'~ B~ ~k, M~n~ ~3
April 19, 1993
C Mr. Daniel J. Donahue
City Manager
City of New Hope
4401Xylon Avenue North
~.' New Hope, MN 55428
RE: Addendum to Assessment A~reement for Emerald Points
Apartment Complex, f/k/a New Hope Terrace
Our File No: 99.11109 ,
Dear Dan:
Please ftnd enclosed a proposed Addendum to the Ju)y 28th~ 1986
Assessment Agreement tn connection with the referenced pro'arty.
As you know, satd agreement was executed by the devilopers ~f the
New Hope Terrace Project as part of the redevelopmen~ agreement
consideration for the use of tax increment financing :o develop the
apartment complex.
Basically, the Addendum reduces the m~n~mum market va ue of Section
. 2.01 from $6,000,000 to $5,000,000. ! have not seer an appraisal
or discussed this market va.lue wtth the Henneptn Cou! y Assessor's
Office. I have included it in the Addendum b~sed on,, your
instructions and communications with Hennep~n Count .
In consideration for this reduction in the market value of the
property, the Addendum requires Lang-Nelson to pay a yearly fee of
$10,OO0 to the EDA. This money shall be earmarketl for low and
moderate income housing projects. As we discussed, dmtn~strative
expenses ~ncurred by the EBA or the City to promote said projects
may be paid out of said funds. Additional consideration requtres
Lang-Nelson to provide the City with temporary construction
easements reasonably needed tp reconstruct the Soo Line Railroad
Bridge and do &11 street, sewer, utility and drainage
deemed necessary by the City.
APR--21 --95 WEB I 4 : 55 CORR I CK & $ONI) RALL P . 04
Mr. Daniel J. Donahue
April 19, 1993
Page 2
Please contact me if you have any further questions.
Very truly yours,
ORIGINAL SIGNED
BY ~N A SONORA~
Steven A.
slm2
Enclosure
CC: K irk McDonald (w/en¢'~j THI~C~,y, FOR
Valerie Leone (w/eric)
, APR--21--95 WED 14 : 55 CORR I CK ~ SONDRALL P . 05
ADDENDUM TO ASSESSMENT AGREEMENT
AND ASSESSOR'S CERTIFICATE
1. Parties - The parties to this addendum are the Economic
Development Authority in and for the City of New Hope
(hereafter EDA) and Winnetka Partners Limited Partnership, a
Minnesota Limited Partnership (hereinafter Winnetka Partners).
2. 8uroose - The purpose of this addendum is to modify the
Assessment Agreement and Assessor's Certificate dated July 28,
1986 entered into between the Housing and Redevelopment
Authority in and for the City of New Hope and the New Hope
Terrace Limited Partnership, a Minnesota Limited Partnership,
with respect to the real property legally described as Lot
Block 1, New Hope Terrace. This agreement shall be effective
as of January 1, 199
3. Authority - The EOA has the authority to enter into this
agreement for the Housing and Redevelopment Authority in and
for the City of New Hope in that the EDA has assumed all
functions of the HRA per City Council Resolution No. 89-73,
HRA Resolution No. 89-4 and Minn. Stat. §469.094~ Subd. 2.
Winnetka Partners has the authority to enter into this
agreement in that it is the successor to title to the subject
property and is bound by the July 28, 1986 Agreement, which it
hereby acknowledges by execution of this Addendum.
~.m_e_0dmeotZOoos_ideratioo - The EDA hereby agrees that §2.01
"A~reed ~ppn ..~intmum~" shall be amended by reducing the
minimum market value of the subject property from
$6,000,000.00 as currently stated in the Agreement to
$5,000,000.00. Further, the EDA agrees that the 2% annual
increase in market value shall be imposed only if the actual
market value increases, by said amount as determined by the
Hennep~n County Assessor and that increases in market value
shell be based solely on actual value, subject to the m{nimum
amount. However, Winnetka Partners hereby agrees ~t will pay
the EDA any deficiencies to satisfy debt service on the TIF
bonds in the event the tax increment generated by the property
is not sufficient to do so. Winnetka Partners will make said
payment immediately upon written notification to it by the
EDA, Debt service shall include principal, interest and
fiscal agent fees connected with the TiF bonds.
~/~) /zn consideration for this amendment, Winnetka Partners agrees
~" /-[it shall make to the EDA a yearly $10,000.00 payment on or
~Y-/ before the first day of May of each year, with the first
1
A P R -- 2 I --'~ :3 WED I 4 ~ 5 6 C 0 R R I OK & $ 0 N ]:1R A L L P . 0 6
payment comm~ng on M~y 1, 1993, ~nd the final payment due
on May 1, 2003~ [n the event Winnetka Partners fails to make
the payments ~equtred herein when due, the minimum market
va3ue shall be increased to $6,494,~00.00, the Hennepin County
taxab3e market value as of the date of this addendum, for the
tax year in which the default occurred at the option of the
EOA. Failure by the EDA to increase the market va3ue upon a
payment default by winnetka Partners in any 9ivan year shall
not constitute a w~iver of the EDA's right, to increase the
market v~ue upon subsequent defaults by W~nnetka Partners.
~_~_ The $ ', . ~y~ shall be waived to the extent
~xes exceed $270,000.00, Th~se proce be used by the
ED~ low and moderate income housing projects ~ncluding sll
administrative expenses~~~rewith.
Winnetka Partners also agrees to provide the City of New Hope
with all temporary construction e~sements required by the City
on, over and under the subject property reasonably required by
the City to rebuild the Soo Line Railroad Bridge and complete
any and a31 street, sewer~ drainage or utility projects deemed
necessary by the City at no cost to the C~ty, However~
Winnetka P&rtners will not be required to provide temporary
essements unless sa~d e~sements provide that the property
affected by the construction is returned to sn equivalent or
better condition upon terminat4on of the easement.
5. Cumu]a~..j. Me. Effect - Th~s Addendum shall be cumulative tn
effect with the July 28, 1986 Agreement and shall not chan~e
any provisions of the Agreement except as specifically set out
here~n. Any inconsistencies between this Addendum and the
July 28, 1986 Agreement shall be controlled by th~s Addendum.
Dated: _. , 1993.
WZNNETKA PARTNERS L][M[TED THE ECONOM][C DEVELOPMENT
PARTNERSH][P, A MINNESOTA AUTHOR][TY ][N AND FOR THE
LIMITED PARTNERSHIP CZTY OF NEW HOPE
By By
][ts President
By By
Zts ][ts Executive Director
APR--21 --95 WED 14 : 57 CORR I CK ~ $ONDRALL P . 07
STATE OF MINNESOTA )
COUNTY OF NENNEPIN )
The foregoing was acknowledged before me this day of
, 1993, by Edw. J. Erickson and Daniel J.
Donahue, the President and Executive Director, respectively, of the
Economic Development Authority in and for the City of New Nope, a
Minnesota municipal corporation, on behalf of said municipal
corporation.
Notary Public
STATE OF MINNESOTA )
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this day of
, 1995, by and ,
the and .. , respectively, of Winnetka
Partners Limited Partnership, a Minnesota Limited Partnership, on
behalf of said limited partnership.
Notary Public
c:\wp51\cnh\addendum.wpl
3
5229121
ASSESSMENT AGREEI4ENT
and
ASSESSOR'S CERTIFICATION
THE HOUSING AND REDEVELOPI.:ENT AUTt{ORIT~ '
IN AND FOR THE CITY OF NEW 'HOPE,
MINN£SOTA,
NEW ,tOPE TERRACe, LIMITED PAR'£N~.R:~HIP,
A MINNESOTA LII41%'ED PAW£NERSHIP,
H~NNF~PIN COUNTY ASSESSOR, ACTING AS
CITY ASSESSOR OF THE CITY OF NEW HOPE
This Documen~ was drafted by:
CORRICK AND SONDP~LL,
3811 ~¢e$~ Broadway
Robbinsdale, Minnesota 55422
ASSESSMENT AGREEMENT
THIS AGREE:.IENT iS dated as of the 28th day of July, 1986 and
~s bet:..~aen the [;ousing and Redevelopment Authority in .and for the
City of New Hope, Minnesota, a municipal corporation organized
under the laws of the State of M~nnesota (the Authority), and New
~ope Terrace 'U~mited PartDersh~p, a Minnesota L~mited
PartnershiP, (the Redeveloper);
IN CONSIDERATION OF the mutual covenants and benefits herein
,~e~crib~d, the A6thority and th~ Redeveloper recite and agree as
~.~,,~-[on 1 Tax Increment Financ!Qq District 86-1
1.01 On' June 23, 1986, the Authority approved a
,.'.~d~:velo[~n%ent plan and redevelo[~nent project, under Minnesota
S~'atutes, Section 462.411, ~[. ~:~q., and a tax
f;~,ancing plan, under :4[nnesuta S;;a%utes', .~,:,.t.[on 2'/3.71 to
~73.'/8, designat~d as Rcdevelop~:.:ant Plan 9~-1 (the "~.2develop:.~ent
[:lan"), Redevelopmen~ Project 86-1 (the "RedeveloL..~.~nt
and Tax Incresen~ F~nanc~ng Plan 86-1 (the "TAX Incre~aent Plan").
The Tax Increment Plan provides for the establishment of Tax
r~cr;~:n.2nt Financ;ng O[sl;ric~ 86-1 (the "District"), each of which
~..'as al~o a2[>~'~v.~d by the C,~)ncil of the City of New Hope,
:.~nn::cota cn I.~e ~a..~a ,~te. I;nder this program, the Redeveloper
u~i].l .~,~,l,~.[re I:],e r.and [ncl,]ded ~ the District, as legally
,.L',:~cr[~.~d in Fxhibit 1 (~he "Land"), sell the Land to the
.,..;~..,c-3. ty, repurchase the rand fo~ a ~ominaI sum, and construct
~,ous[~%g, all as 4e~crihed in:
i{EQEVELOPMENT AGREEMENT PROJECT ~6-1, between New Hope
TeL'ra~-~q~iked Partnership, a ~4innesota Limited Partnership,
i~ousing and Redevelopment Authority In and For the C~ty of New
U.ope, [4innesota, and City of ::.~w :~op~, :4innemota, ~ted as of
july 28, 19S6.
...... ,,ni2:~um :.:arket Value.
2.01 69. reed U~n ~4in[~Jm~. The Redeveloper agrees that the
,;~-ini::.um market value of Lh~;~d as described in Exhibit 1 and
the completed ~{c. us~ng Facilities for ad valorem tax purposes,
.~.~mT.~ncing with .the asses:~mant n~%de as of January 1, 19S8, shall
be $ ~,.~.~,~~...; ..... and shall ~ncrease e.3ch Januazy
rhea'caf tut. at a rat~ of not Ie'~s than 2% per annum co,pound,ed to
and including February 1, 2003, and shall not ]:~ reduced by any
action taken by the. Redeveloper (other tkan a daed in lieu of, or
uzder threat of, condemnation by the City or other condemning
authority), to less than the said amount of $6,~00,c~00
~.,~,~ 2% -:.'..,,~al i~;creases, and Chat during :~.~z~ ~=~ ,,~
L',~.U',,ct[,~a Of the market value therefor below said minimum -'
ualue skall be sought by the Redeveloper or granted'by any public
official or Court except in accordance with :dfnn,:sota Statutes,
S~ctio~ 273.76, Subdivision 8. This minimum market value shall
opply only to the Land and [{ousing Facilities situated on the
La~%d as described i~ Exhibit 1. In event of involuntary
conversion of the premises for any reason, the min.[mum market
value shall not.be reduced to an amount less than $6,000,000 plus
any applicable 2% increases.
2.02 ]~i~er Market Value. Nothing ia th'ts Assessment ..
A,jL',:c~=,,gnt shall limit the discretion of the County Assessor of
;{e~nep{n County, acting as assessor, for the City of New Hop9 (the
"A:~:~,:ssor") or any other public official or body having.the duty
to d,~to~mine the market value of the Land and the ~ousing
Facilities for ad valorcm tax purposes, to assign to the Land
the Housing Facilities, or to any other iJ%~provements constructed
on the Property or on the pre,~[ses described in Fxhibit 1, on a
~o~discriminatory basis and tr,~ated fairly a~d ,=~=~ally with all
other property so classified in ;~onnepin County, a maL'k0t value
in ~xcess of the minimum market value'specified in Section 2.01.
The Redeveloper shall have the normal remedies~available under
the law to contest any estimated assessors estimated value in
e~'ccss of $6,000,00 or as increased annually, as provided above.
2.03 S~,~n~a! C~]~,~t.[on. For purposes of this
Asse.~..~ent Agrcament and the ,]et,~:~',~nat~oa of the market value of
the ?,;operty and the co:.~pletcd t;.~us~%g Facilit].es for ad valor'em
t:ax purpu:~es, the Redeveloper agraes i'.hat Lhe [lousing Facilities
::hall be ~c~-/.cd to be c.o:,~?leted in acco:'danca ~;ith the
E,.]c'4.71. oj...'~.~,lt Agrce.ze~lt as of Decu.,'..bec 31, IJ87, (the required
,%ate ,~f cc:~plet[on), :.:hether in fact completed or not.
:' :~tion 3. ~!!!n~ and Certificatio,
3.0L A'.~::.~:~gc.~gF. tificati~q. The Authority shall prasent
.. = .... at Agruc;zen: to the Assessor and request him'to
,::~.:cut,~ the cet'tf, fiuatfon attached hereto as Exhibit 3. The
l~.:.~v$~.---,~ .",-1~ pcuvida ~:o the Assessor all information
r,~r~tfng t'o th,~ ~rop,)rty and the ;;cusing Facilities :'eq::usted by
h~m for the L',,.lrposes of discharging his dt~ties with respect to
the ,;,}rtif{cation.
3.02 ~'~z~." Within 30 nays after the e:<~;cu.tion of this
A.sses:men: Agruam~nt, the Redeveloper shall cause this Assessment
Agraament and a cogy of Minnesota Statutes, Section 273.76,
Subdivision 8, attached hereto as Exhibit 2, to be recorded in
the off,ce of the County Recorder of [~ennepfn Cou~%ty, or with the
Registrar of Titles, Hennepin Co,~nty, :4inner,ora, if the title to
the land is registered.
Section 4. Relatton to Rq~'~91~f?_,r29qt..~.~rec::r. ent. The
covenants and agreements r,~de by the ?edeveloper in thfs
A.-.:.~-~n~ .............. Agreement are se?.%r:%~:e f~,:m and in addition to the
,.,.,'_.'~ ;,,lu;'.,',,.-at Agrec..'~,ent~ ao~hiag contained hereta ~hall' in any
ali'.or, diminish or supersede the duties and obligations of
~,~,leveloper under the Redevelopment Agreement. ,
Section 5. Administrative Provisions.
5.01 Binding-Effect. This Assessment Agreement shall inure
the benefit of and shall be binding upon th~ Authority and the
'.'~eveloper and their respective successors and assigns, and upon
~:ubsequent cwners of the Land and the ~ousing Fac illt'ies .'
5.02 Severabil[tZ._. ..... _ Ia the event any provision of thls /
.~:~,:~::-:,~nt-Agreement shal~ be held invalid or unenforceable
co0~-t of cempetent jurisdiction, such holding shall not
~%val[,]ate or render unenforceable any other provision hereof~
5.03 Amend~r. entst Ckan~es and Modiftcal:ton!. Except'as
'ov{,{ed in Section 5.04, this Assess~,~ent ~..3ree~.~ant may be
.~.,,~ed or any of its terms modified only ky ~'itten
~kl',orized and executed by the Authority and the Red~velo~)~r.
5.04 Further Assurances and Corrective Instruments. The
~khority and the Redeveloper agree that they will, from time to
ina, ,..xecute, acknowl,9,],]e and deliver, or cause to be executed,
ck~c.'.zlc~3,jed or delivered, such supplements hereto and such
~kl~,~r lnst~'u~%~nts as ~r, ly reasonably be required for correcting
{n~dc,'i.~.xte o~ incorrect description of the Froperty or the
,~:~{~g k'aci].itie~, or for carrying out the expressed intention
. ,, ............ ,.nt Agree~.ent
5.05 ~3cution Couqterparts. This Assessment Agreement may.-
simultaneously executed ia several counterparts, each of which
11 be an original and all of which shall constitute but one
the same instrument.
5.06 ~pp.k~.gable Law. This Assessment Agreement shall be
~v,~r,%,2d by and construed [n accor,{ance with the laws of the
~..~t~ of ~.~inn,~sota.
5.07 ~.?,ptio9~. The captions or h~ad~ngs in th{s
~:,.--,.nt .%~:e ~or convenience only and in no.¥:.xy ,~:~fiae, Ii:nit or
~,.:~. (.:.e :.'~ scope or intent of any provisio~ ,~ C.2,:t.~;ns of
A::, s,~ ~ :;.r~e n t
5.08 Effective Dar9. This Assessment Agreement shall be
L:.ctive as of July 28, 198~.
IN WI'fNESS ;';HEREOF,' the Authority has caused this
rce:aent to be ex,>cuted 'i~ Its corporate numa by its duly
,thorized officers and sealed with its corporate seal; and the ·
%~eveloper has executed this Agreement by its duly authorized
fDrcsentative.
,ri{,~, }{OUSI'NG AND
IN AND FOR TIlE CiTY OF NEW HOPE,
(S~AL) By ~,__ ....
- sy S66~~~ _
NEW HOPE TER~3ACE LI~41YED PARTNERSHIP
STATE OF MINNESOTA)
) SS.
COUNTY OF HENNEPIN)
The £oreqoing instrument was acknowledged before me this
llth ~ay o£ August, 1986 by Edw. J. Erickson, Chairman, W. Peter
Enck, Secretary-Treasurer, and Dan~el J. Donahue, Executive
Director of The Housing and Redevelopment Authority In and for
the City of New Hope, Minnesota, a M~nnesota municipal
corporation, on behal[ of the corpora~ion,
!
STATE OF MINNESOTA)
) SS.
COUNTY OF HENENPIN)
~-- The foregoina instrument was acknowledged before me this
~day o{ ~.~_~W./~.L,'~J~ , 2986 by Fra.nk_Xu.bLtsche. k:. w
President of Stratford Investments, Ltd., Genera~ ~arcner o£ Ne
Hope Terrace Limited Partnership, a Minnesota Limited
Partnership, on behalf of said Limited Partnership'.
EXHIBIT 1
REDEVELOPMENT AGREEMENT PROJECT 86-1
Legal Description for Tax Increment Financing District 86-1
New Hope Terrace,
Lot 1, Block 1
Statute ~73.7~, Subdivision 8
Subd. 8. Assessment agreements. An authority m~y, upon
l:ering into a development or redev~iopment agreement pursuant to
e,:t[on 273.75, subdivislof~ 5, enter into a written assessment
gree:nent tn re~.rdable form with the develuper or redeveloper of
,~o~erhy within the t~x increment financing distr~c~ ',,h~ch
stabI~shes a minimum ~rke~ value of the l~nd and co~aple~ed
:.,p~ovemen~s to be constructed ~hereon until a
'.e['mlna~ion date, whlch date shall be no later than the dat~ upon
,h~.ch tax increment will no longer be re,,,itted to the authority
,ucsuan~ to section 273.75, subdivision 1. ?~e assessment
grec~,uat shall be presented to the county assessor, or city
s:~cs:3or having the powers of the county assessor, of the
uuisdict~on in :.;hich the tax 1nc~ement financing district is
0c.~t..d. 'She assessor shall review the pla~s and specificatlons
~or the improvements to be cems~ruch.:.d, review the :,~rket value
:revlously assigned to the land upon .,,~[,~h ~:,e ~..~provc~:~ants are to
')e constructed and, so long as t~e mini:,,u~,% ,~u~'ke~ value co~tai~ed
~n the assessment agreement appears, in the j,~dgment of ~he
~ssessor, to be a reasonable estimate, shall ex,.cute the follo~.~ing
:ertif~cation upon such agreement:' "
'~'he undezs.{gned as'=~esuor, being Igga].ly..~esponsible for
~sues~ment of the abo~u ~escr~)ed property upon completion' of ~'he
[,..provuments to be cons[rutted thereon, hereby certifies that the
~.~et value assigned to such land and improvements upon
cog'.pier,on shall not b,~ less than $ ..... .
Upon transfer of tltle of the land to be developed or
:edaveloped from the authority to the developer or redeveloper,
such assessment agreement, together with a copy of this
subdivision, shall b~ fi. led for record and recorded in the office
of the county recor,]er or fi'led ~.n the office of the registrar
titles of the county' where the real.' estate or any part thereof is
s~tuated. Upon cc~.~plet~on of the l~,~p~o~c:~,~nts by thc developer
rede./eloper, the a=sussor.- shall value ~:~u ~r~.--~'ty.. p,.~rsuant to
section 27].1]., except tha~ the.m~arket value assigned thereto .
shall not be less than the mini~i~u~%~ ~cket '..,,~].:~e cont'a;.n.:d in
as.~essment agree:sent. Nothing here.in sha].l ].i~,iit i~l~e
0f the assessor to assign a ~rket value to the pr,~p.~-rty ia excess
of the minimum market value contained in the assessment ag~ee,~ent
nor p~ohibit'the ~veloper or redeveloper from seeking, through
the exercise of administrative and legal run~edles, a reduction
:.'.]cket value for property tax purposes; p~:ovidcd, hon.:ever, that'
the. developer or' redeveloper shall not se.ak, nor shall the city
assessor, the county assessor, the county au,][tor, a~y board of
rev~cw, any board of equalization, the c,~ .... ,fss~.oi%er of revenue or
a~y court of this state grant a reduction of the market value
below the m~nimum m,~rket value co~itainc, d in the assessment
agrcement during the term of the.aUr.2,2..~<:',t filed of record
,':ly c?.u::e, in~u~ed or uninsured, excep~ in the case of '
~iu;:iition ur rcacqulsition of the property by a ~-ublic ent{ty.
,:o,.,l[ng or filing of an assess:neat agreement complying with the
:~...s of ;ibis subdivis~o~ shall comstitute notice of the agree:ncn~
~.,plying wi~h the terms of this mubdiv~s[on shall constitute
~t~.ce of the agreemen~ to any sub~equen~ purchaser or
,cu~brancer of ~hm land or any part thereof, %.;hether voluntary or
~,~olun~ary, and shall be binding upon the~.
Assessor ' .~ Certificate "
The undersigned, being th.e duly q,:aiified and acting
'.;inl'~,::~ota, hereby certifies
Assessor of the City of Mew [~ope, .
that:
1. I am the assessor r,2sponsible for the as~essmen~ of the
Property described in the foregoing ~'~.hibi~ 1;
2. Z have r~ad the ~oregoing As:s~]:;u ~an~ Agreemen~ da~ed a~
of july 28, 1986;
3. I have received and r.~ad a duplicate ori,3inal of the
Redevelopment Agreement, ~roject 86-1, perta{ning to the Mew I{ope
Terrace Limited ~ar~rship housi~g projec~ .it '/~01 .- 3$th Avenue
North~ ::ew ' ~ "'
4. I have ~'aceived and reviewod th~"~rChitectural and
engineering plans and specif~cations'fo~ the Housing Facilities
agreed ~o be con~trncted on the L.t:nd by the Redeveloper pursuant
to the Re,]eveloL..,:ent Agrec~nent;
5. I have received and reviewed an estimate prepared by
the Redeveloper of the cost of the [.and and the [~ousing
Facilities to b~ constructed thereon;
6. Z have reviewed the marke~ value previously assigned to
the Land on which the improvements are to be constructed, and the
m~nimum marke~ value'contained in the Assessment Agreemen~
appears to be a reasonable estimate; and
7. Z hercoy certify tha~ the ~:mr~<~.~ Value assigned, to the
~,-;perty and the Facilities da~ccil;e,] on the foregoing Exhibit 1
upon Cc ,pl.~tion ~hall not ::u !~=.~s t]:~ $~ .......................... , and
~:~at this A:~S.:~:)L''S ~-:,~ '" ...... '
' ~.~ Val~i,~ ..~.~1 ~r,,:t; .~.:;.~ a~ the cal:~ of
not less tn.~n 2% per }'ear, co:npoun,~.~d, ,.,i~'o..,,zh .=nd including
F-~',,'" 2603
~-. ~a~y 1~ .
Dated the' day of , 1986.
ty Assessor
ll.;..",.n:'.-pin C,..:,:nty, Minnesota
33
Assessor's Certificate '
The undersigned, being the duly quaiiffed and acting
Assessor of the City of New Hope, Minnesota, hereby certifies
that:
1. I am the assessor responsible for the assessment of the
P~'operty described in the foregoing Exhibit 1;
,,
2. I have read the ~oregoing Assessment Agreement dated as
of July 28, 1986;
3. I have received and read a duplicate original of the
Redevelopment.Agreement, Project 86-1, pertaining to the New Hope
Terrace Limited Partnership housing project at 7601 - 36th Avenue
?,'orth, New [{ope,. Minnesota;
4. I have received and reviewed th~"~r6hitectUral and
engineering ple. ns and specifications'fo~: the ~{ousing Facilities
agreed to be constructed on the Land by the Redeveloper pursuant
to the Redevelopment Agreemeut;
5. I have received and reviewed an est'imate prepared by'
the Redeveloper of the cost of the Land and the Housing
Facilities to be constructed thereon;
6. I have reviewed the market value previously assigned to
the Land on which the improvements are to be constructed, and the
minimum market value'contained in the Assessment Agreement
appears to be a reasonable estimate; and
7. I hereby certify that the ~,larket Value assigned, to the
Property and the Facilities described on the foregoing Exhibit
upon co~.-:pletion shall not be less than $6,00~000._Q.Q __ , and
that this ~¥~ssessor's ~.:arket Value shall incJea-~-a~ the rate of
?,et less t'kan 2% per year, compounded, through and including
Febru.-~ry 1, 2003.
Dated the' /~day of ~ , 1987.
Donald F. l.~nk, County Assessor
llennepin County, Minnesota
~.,ik[ 4/~,,/ REQUF~T FOR ACTION
Originating Depar[ment Approved for Agenda Agenda Section
City Manager EDA
4-26-93
Kirk McDonald Item No.
By: Management Assistant By: 5
RESOLUTION AUTHORIZING ADDENDUM TO CITY OF NEW HOPE DEVELOPMENT
CONTRACT FOR AUTOHAUS ADDITION
The enclosed Addendum to the Autohaus Development Contract contains the terms that the EDA
agreed to at the April 12th EDA meeting. The Addendum allows an extension on the
improvements north of the south building line until October, 1993, and allows an extension on
the improvements south of the south building line until October, 1994. It is understood that if
Autohaus finds that it cannot make the rear improvements by the fall of 1994, that Autohaus
may seek an additional extension. The Addendum does not release the Letter of Credit, as
requested by Autohaus, and Autohaus has been invited to attend a future EDA meeting to discuss
this issue with the EDA if they so desire.
Staff recommends approval of a motion approving the Addendum to the Autohaus Development
Agreement.
ReView: Administration: Finance:
RFA-O01 ~
RESOLUTION NO. 93-
RESOLUTION AUTHORIZING ADDENDUM TO
CITY OF NEW HOPE DEVELOPMENT CONTRACT
FOR AUTOHAUS ADDITION
BE [T RESOLVED by the City Council of the City of New Hope as
follows;
1, Thet the Addendum to C~ty of New Hope Development
Contrsct between the City of New Hope, Autohaus of M~nneapolis,
[nc., and Thom&s Boettcher~ sttached hereto as Exhibit A~ which
modifies the original Development Contract between the parties
dated Apr~l 4~ 1991~ is in the best interest of the C~ty~ ~s hereby
&pproved ~ &nd the City Manager and M~yor are hereby authorized to
sign satd Addendum,
Adopted by the C~ty Council this ,, . day of Apr~l~ 1993,
Edw. J. Er~ck~on,'Ma¥or .....
Attest:
Valerie Leone~ C~ty Clefk
LEASING ge SALES / FOREIGN AND DOMESTIC AUTOMOBILES
Audi March 18, 1993
FORD Mr. Dan Donahue, City Manager
Mr. Kirk McDonald
Management Assistant/Community Development Coordinator
hll$$,4N City of New Hope
4401 Xylon Avenue North
HONDA New Hope, Minnesota 55428
RE: Addendum to City of New Hope Development Contract
C H RYSLE R with Autohaus of Minneapolis, Inc.
~ Dear Mr. Donahue and Mr. McDonald,
Thank you for your letter of February 19, 1993. As you know, we would like to
BrvIW complete the proposed work as soon as practical, but would reiterate some of
the things that I told you of.
MI=I:IGEDES First of all, we were planning on doing the work north of the south line of the
building last fall. Because of the weather and scheduling conflicts, that could
VOLVO not be accomplished. We are planning on having that work completed as
soon as the spring weather and road conditions would allow.
AGORA We would request the City, though, to help this project, release the certificate of
deposit in the amount of $26,300 to fund a portion of this work. As you know,
T O Y O T A the car sale business has been slow and I have had some internal accounting
problems here that have delayed and affected our ability to complete the work
initially contemplated in a timely fashion.
PORSCHE
! would also like to remind you of the $187,000 initially borrowed. That balance
JAGUAR is now down to approximately $118,000. We have been trying to pay that in
advance as cash flow would allow, and our records reflect that we have paid
approximately $23,000 ahead of schedule. I would request that you take that
into consideration in releasing the certificate of deposit.
,, 7709 42nd Avenue North ~r Minneapolis, MN 55427 * (612) 535-5707
Page 2
City of New Hope, March 18, 1993
I would also like to note that we have done a substantial amount of
improvements and betterment to the property. We have painted the building,
installed new awnings and have a new sign ordered to be installed this spring.
The building's appearance has been dramatically improved by these efforts.
In regard to the back portion of the lot, we would request that you allow a delay
of between three and four years to complete that part of the work. You know
that we have done a lot of work back on that property, too, and have done
grading after removing bad material and products that have been dumped
there. We have also grassed in the area, so it will be neat in appearance.
The automobile industry has been severely hampered by the economic
recession that we have had. In the history of the United States, automobile
companies themselves have suffered some of the largest losses in history. Our
business is progressing, but we have not made the strides, nor had the sales
that we had hoped for, and that is another reason for the request for delaying
some of this additional work.
We have removed the building in the front part, which was an eyesore, and are
doing everything within our power to meet these development goals and
deadlines.
We would appreciate your consideration for this last request. ! will be waiting
to hear from you in the hopes that we can resolve these matters on an
amicable basis. Thank you for your consideration.
Sincerely,
/
AUTOHAUSdOF MINNEAPOLIS, INC.
Thon~a~. Bother, President Th t
APR--2s--gs FR I 11 ; 46 CORR I CK & 80NBRA&L P . 02
April 23, 1993
Kirk McDonald
Management Asst.
City of New Hope
4401Xylon Avenue North
New Hope, MN 55428
RE: Autohaus Addition
Our File No, 99.15025
Dear Kirk:
Enclosed please find a proposed Resolution Authorizing Addendum to
City of New Hope Development Contract for Autohaus Addition.
If you should have any questions, please contact me.
Sincerely,
Martin P. Malecha
s3f
Enclosures
cc: Daniel J. Donahue
Valerie Leone (w/enc)
Steven A. $ondrall, Esq.
APR--2~--9$ FR I 11 : 4~ CORR I CK & SON~RALL P . O4
ADDENDUM TO CZTY OF NEW HOPE
DEVELOPMENT CONTRACT
1. PartieS. The 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. Pur_~. Thts Addendum shall modify the April 4, 1991
Development Contract entered into by the parties. Autohaus
and Boettcher acknowledge and agree that they are in breach of
the performance conditions of said contract and in
consideration for the City's agreement not to immediately
pursue its remedies under the terms of the April 4, 1991
contraot ~oettcher and Autohaus have agreed to enter into this
Addendum.
8. Uo.~er~ormed Conditj..ons. Specifically, Autohaus and Boettcher
acknowledge and agree that they have failed to perform all the
requirements of paragraphs 2.A) through I) and $ of the
Development Contract, With respect to the work required by
these provisions the parties hereto agree as follows:
a.) The installation of concrete curb from the most southerly
wall of the building northward to the property line shall
be completed by October 31, 1993. The remainder of the
curbing as shown on the site plan shall be installed by
October 31, 1994, All curbing shall be of a surmountable
type as approved by the City. Autohaus and Boettcher
shall submit a diagram of said curbing for approval to
the City prior to installation.
b.) Installation of bituminous paving in the body shop and
repair storage area shall be completed by October 31,
1994,
C.) All plantings shown on the site plan north of the
buildings most southerly wall shall be installed by
October 31, 1993. All other plantings shown on the site
plan shall be installed by October 31, 1994.
d.) The six-foot opaque security fence around the perimeter
of the body shop and collision repair storage area shall
be installed by October 31, 199~. The existing fencing
shall remain in place until the new security fence is
installed.
Exhibit A
APR--2~--9~ FR I i i : 47 CORR I CK ~ SONDRALL P . 05
e.) The installation of lighting shown on the site plan shall
be completed by October 31, 1993. However, the parties
agree that 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.
f.) All planted areas completed in 1993 will be sprinkled by
October 31, 1993. All planted areas completed in 1994.
will be sprinkled by October 31~ 1994,
g.) The installation of the outdoor trash enclosures will be
completed by October 31, 1994.
h.) The front display area will be completed by October 81,
1993. However, the parties agree that the front display
area can be paved with concrete and bituminous.
i.) The islands in the transport lane area will be installed
by October 31, 1994.
j.) The public improvements for storm water drainage and
erosion control required by paragraph 3 of the
Oevelopment Contract must be completed in conjunction
with the construction of the bituminous paving in the
body shop and repair storage area. Autohmus and
8oettcher acknowledge and agree said bituminous paving
will not be allowed unless the drainage and erosion
control work is completed simultaneously with the paving
work all to be completed no later than October 31, 1994.
4, ~fect of Addendum. The parties agree that this Addendum
she!3 not change the other provisions of the April 4, 1991
Development Contract which shall remain in full force and
effect. This Addendum shall be construed as supplemental to
and not inconsistent with the Development Contract. The
parties further agree that a breach of this Addendum shall
also constitute a breach of the April 4, 1991 Mortgage~
Security Agreement and Fixture Financing Statement given by
Soettcher to secure the April 4, 1991 Mortgage Note executed
by Boettcher. Autohaus further agrees that the assignment of
the Certificate of Deposit given as financial security to
insure performance of the Development Contract shall also
extend to this Addendum.
APR--2~--9~ FR I i I : 48 CORR I CK & SONDRALL P . 06
CITY OF NEW HOPE
D~ted: By
Its Mayor
Dar ed: By
Its City Manager
AUTOHAUS OF MINNEAPOLIS, INC,
Dated: By
Its President
Dated:
Thomas W. Boettcher, individually
STATE OF MINNESOTA )
COUNTY OF HENNEPIN )
The foregoing was acknowledged before me this day of
. , 1993, by Edw. J. Erickson and D~ntel J.
Donahue, the Mayor and City Manager, respectively, of the City of
New Hope, ~ Minnesota municipal corporation, on behalf of said
municipal corporation.
Notary Publ't
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this day of
, ., 1993~ by_.. ..... , the
President of Autohau~ of Minneapolis, Inc., a M~nnesot&
copporat~on, on behalf of said corporation.
Notary Public
3
~pR--25--9~ FR I i I : 49 CORR I CK & SONDRALL P . 07
STATE OF MINNESOTA )
COUNTY OF HENNEPiN )
The foregoing waa ecknowledged before me this day of
, 1993, by Thomas W. Soettcher, individually.
Not ~ry Public
c;\wp51\autohaus.edd