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061493 EDA OFFICIAL F~LE COPY I CITY OF NEW HOPE I EDA AGENDA EDA Regular Meeting//9 June 14, 1993 Agenda//9 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 May 24, 1993 4. Resolution Authorizing Addendum to City of New Hope Development Contract for Autohaus Addition and Reduction of Subdivision Bond (Improvement Project No. 467) 5. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes May 24, 1993 Meeting #8 CALL TO ORDER President Pro Tem Enck called the meeting of the Economic Development Authority to order at 7:36 p.m. ROLL CALL Present: Enck, Wehling, Otten, Williamson Absent: Erickson APPROVE MINUTES Motion was made by Commissioner Williamson, seconded by Commissioner Wehling, to approve the EDA minutes of May 10, 1993. All present voted in favor. Motion carried. IMP. PROJECT 467 President Pro Tem Enck introduced for discussion Item 4, Discussion Item 4 Regarding Addendum to City of New Hope Development Contract for Autohaus Addition (Improvement Project No. 467). Mr. Dan Donahue, City Manager, stated this matter was tabled at the April 26th EDA Meeting to allow the City Engineer and staff to review the storm sewer requirements included in the plan. Autohaus is requesting release of the $26,000 development bond so that the funds can be utilized for improvements to the front of the site. Mr. Donahue stated the property has been reviewed and if Autohaus does not go forward with the improvements, then staff recommends releasing the letter of credit and amending the development contract. He pointed out that the letter of credit guaranteed a portion of work on the front part of the property. Mr. Mark Hanson, City Engineer, indicated the southwest bank of the wetland is eroding and should be corrected prior to releasing the letter of credit. He noted the presence of a four foot deep gully on the edge of the pond. Mr. Tom Oestreich of Autohaus questioned the costs and options to remedy the erosion problem. Mr. Hanson stated costs depend on the method of landscaping varying from black dirt and grass seed to fabric and sodding. He estimated a price range between $1,000 to $1,500. President Pro Tem Enck asked if the City should be concerned with water quality as well as water quantity issues. Mr. Hanson stated the $26,000 financial guarantee for the improvement contained $4,500 to build a treatment pond to collect the water off the newly developed lot along with the northerly portion of the bus garage to treat the storm water before it discharged into the wetland. He stated New Hope EDA May 24, 1993 Page 1 since the lot has not been improved and is still a grassy area the treatment pond is no longer necessary. Mr. Donahue stated the financial guarantee could be reduced to cover the erosion problems only. Mr. Steve Sondrall, City Attorney, indicated that if Autohaus desires to develop the rear lot in the future, they would be required to enter a new development contract with the City and furnish a new financial guarantee. Commissioner Williamson stated the back yard has been improved tremendously since Autohaus acquired the property. She emphasized the need to make the public aware that the area is not a dumping ground. She questioned whether the drainage project cost should be partially funded by the school district. Mr. Hanson stated Autohaus could have petitioned the City to build the storm sewer and the School District may have been assessed; however, as part of negotiations when the land was purchased, Autohaus elected to build the storm sewer and pond. Mr. Sondrall clarified that the School District could not be assessed if Autohaus does the sewer work privately. He stated assessments are only possible through public improvements. President Pro Tem Enck suggested referring the issue to staff and authorizing reduction of development bond retaining an amount necessary to guarantee correction of the erosion problems only. Mr. Sondrall recommended drafting an amendment to the development contract to clearly record the amendments. He stressed the importance of addressing specific items such as the elimination of the bituminous paving requirement which relieves Autohaus of their bonding obligation for sewer improvements. He stated the amendment can also address the existing issue of the erosion problem and whether any funds need to be retained to ensure its completion. MOTION Motion was made by Commissioner Wehling, seconded bY Commissioner Item 4 Otten, directing staff to draft amended development contract for consideration at June 14, 1993, EDA Meeting. Amendments shall 1) relieve Autohaus of storm sewer improvements in rear of property which affects bonding requirement; and 2) add requirement regarding correction of wetland erosion problem. All present voted in favor. Motion carried. CO-OP NORTHWEST President Pro Tem Enck introduced for discussion Item 5, Resolution REVITALIZATION Establishing the New Hope EDA Support for Co-op Northwest Community CORPORATION Revitalization Corporation, F/K/A New Hope Community Revitalization Item 5 Corporation. President Pro Tem Enck explained that the New Hope Community Revitalization Corporation was originally established as a non-profit entity for construction of the Winnetka West housing facility. City staff is proposing that this non-profit entity now be expanded to include all five New Hope EDA May 24, 1993 Page 2 cities involved with the CO-OP Northwest Community Revitalization Corporation. The five-city non-profit organization would have access to federal housing funds through a competitive grant process that otherwise would be unavailable to local units of governments. EDA RESOLUTION Commissioner Williamson introduced the following resolution and moved 93-09 its adoption: "RESOLUTION ESTABLISHING THE NEW HOPE EDA Item 5 SUPPORT FOR CO-OP NORTHWEST COMMUNITY REVITALIZATION CORPORATION, F/K/A NEW HOPE COMMUNITY REVITALIZATION CORPORATION." The adoption of the foregoing resolution was seconded by Commissioner Wehling and upon vote being taken thereon; the following voted in favor thereof: Otten, Enck, Williamson, Wehling; and the following voted against the same: None; Absent: Erickson; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. OTHER BUSINESS Mr. Donahue informed the EDA of a request to ban train whistles during TRAIN WHISTLES certain hours when crossing Boone and Winnetka Avenues. He commented that the City of Plymouth held public hearings and adopted an ordinance prohibiting sounding of train whistles and horns between the hours of 10 p.m. and 7 a.m. in a certain area. President Pro Tem Enck reported that railroads are controlled by federal statutes and certain safety regulations require sounding of whistles. He asked staff to investigate such regulations and report findings at a future Council Meeting. Mr. Donahue asked whether the EDA had been approached with similar requests. The EDA indicated they had not been contacted by any residents regarding train whistles. Safety issues were briefly discussed. ADJOURNMENT Motion was made by Commissioner Wehling, seconded by Commissioner Williamson, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:02 p.m. Valerie Leone City Clerk New Hope EDA May 24, 1993 Page 3 ~~~? REQUEST FOR ACTION originating Department Approved for Agenda Agenda Section City Manager EDA 6-14-93  Item No. Kirk McDonald ~//// By: Management Assistant By: 4 RESOLUTION AUTHORIZING ADD, Z%IDUM TO CITY OF NEW HOPE DEVELOPMENT CONTRACT FOR AUTOHAUS ADDITION AND REDUCTION OF SUBDIVISION BOND (IMPROVEMENT PROJECT NO. 467) Per the EDA's direction at the May 24th EDA meeting, the enclosed Addendum to City of New Hope Development Contract for Autohaus Addition has been amended to delete the storm sewer improvements at the rear of the property and the paving of the Body Shop Collision Repair Storage Area. This will allow for a reduction in original subdivision bond of $26,280 and staff is recommending that $25,280 be released to assist with the improvement on the front of the property. The City Engineer is recommending that $1,000 be retained if it is necessary to correct the wetland erosion problem. This Addendum has been forwarded to the developer for their review/comment prior to EDA approval. The remainder of the development contract requires the rest of the improvements to be installed/completed per the schedule previously agreed to, with all improvements north of the southerly building line to be completed by October 31, 1993, and the improvements south of the southerly building line to be completed by October 31, 1994. It is also understood that if the developer cannot install the rear improvements by October, 1994, that they may seek an additional extension of time from the City in which to complete the work. Staff recommends approval of a Resolution Authorizing Addendum to City of New Hope Development Contract for Autohaus Addition and Reduction of Subdivision Bond. Review: Administration: Finance: RFA-O01 JUN-- ?--'B~ MON i 5 -- $~ C 0 R R I C K ~- S ON I~ RA L L P . 0 2 RESOLUTION NO. 93- RESOLUTION AUTHORIZING ADDENDUM TO CITY OF NEW HOPE DEVELOPMENT CONTRACT FOR AUTOHAUS ADDITION AND REDUCTION OF SUBD[VISION BOND BE IT RESOLVED by the City Council of the City of New Hope as follows: 1. That the Addendum to City of New Hope Develol~nent Contract between the City of New Hope~ Autohaus of Mtnneapolis~ Inc., and Thomas Boettcher, attached hereto as Exhibit A, which modifies the original Development Contract between the parties dated April 4, 1991, ~S in the best ~nterest of the City, Is hereby approved, and the City Manager end Mayor are hereby authorized to sign sa~d Addendum. 2. That after the execution of said Addendu=~ the Subdivision Bond required of Autohaus and Thomas Boettcher shall be reduced to the amount of $1~000.00, reflecting the decrease in the amount of work required by the Development Contract and Addendum. Adopted by the City Council thts . day of June~ 1993. Edw. d, Erickson, Mayor Attest: ~lerie Leone, c'ity Clerk 4401 Xylon Avenue North Telephone: 612-531-5100 City Hall Fax: #612-531-5136 New Hope, Minnesota 55428-4898 TDD Line: 612-531-5109 Police Fax: #612-531-5174 Public Works Fax: #612-533-7650 June 7, 1993 Mr. Thomas Boettcher Autohaus of Minneapolis, Inc. 7709 42nd Avenue North New Hope, MN 55427 Subject: ADDENDUM TO AUTOHAUS DEVELOPMENT CONTRACT Dear Tom: Enclosed for your review and comment is the latest Addendum to the Autohaus Development Contract. The New Hope EDA will be considering this at the June 14th EDA meeting. Please review the agreement and let Dan or I know if it meets with your approval. The storm sewer improvements have essentially been eliminated and staff is recommending the release of all but $1,000 of the bond. The completion dates for the improvements are the same as we agreed to before, with everything north of the south building line to be completed by October 31, 1993, and the improvements south of that line to be completed by October 31, 1994 (with the understanding that you can still request an extension on the rear improvements). I hope that these revisions address your concerns. Sincerely, Kirk McDonald Management Assistant/Community Development Coordinator KM/lb Enclosure: EDA Addendum Request cc: Dan Donahue, City Manager Mark Hanson, City Engiener Steve Sondrall, City Attorney Doug Sandstad, Building Official Project File//467 Family Styled City'~~ For Family Living JUN-- 7-- 9--~ MON I 5 : 0 7 ¢ ORR I CK & $ONDRAIL. P . 0 ~ ADDENDUM TO CITY OF NEW HOPE DEVELOPMENT CONTRACT 1. part,es. The part,es to this Addendum are the City of New Hope (hereafter City), Autohaus of Mtnneapolts~ (hereafter Autohaus) and Thomas W. Boettcher, (hereafter Boettcher). 2. Pro~ert.X. The real property (hereafter Property) to which the this Addendum applies ts owned in fee by Boettcher and is located tn Hennepin County, Minnesota~ legally described as: (See attached Exhibit A) 3. u~. 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 remedies under the terms of the Contract Boettcher and Autohaus have agreed to enter into th~s Addendum. 4. Unperformed Cond~t..iona. Specifically, Autohaus and Boettche~ acknowledge and 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 follows: a.) The installation of concrete curb from the most southerly wall of the building northward to County Road No, 9 shall be completed by O~tober ~1~ 1993. The remainder of the curbing as shown on the sits plan shall be installed by October 31~ 1994~ except that curbing around the per,meter of the unpaved body shop and repatr storage area shall be installed tf and when said body shop and repair storage area is paved as set forth below. All curbing shall be of a surmountable type as approved by the City. Autohaus and 9oettcher shall submit a d~agram of saJd curbing for approval to the City prior to installation. b.) All plantings shown on the s~te plan north of the butlding's most southerly wall shall be ~nstalled by October 31, 1993. All other plantings shown on the site pl&n shall be installed by October 31, 1994. 1 JUN-- ?--9~ ~ON · 5 ~ 08 COB~ I OK ~ SON~LL P . 04 ~c,) The six-foot opaque security fence around the perimeter of the body shop and collislon repair storage area shall be Installed by October 31~ 1994, The existing fencing shall remain in place until the new security fence ts Installed, d,) The installation of lighting shown on the s~te plan shall be completed by October 31~ 1993, However~ the parties agree that the ex~sting lighting for the collision repair area as of the date of this Addendum is adequate and no further lighting is required notwithstanding the l~ghttng required by the site plan. e,) All planted areas completed in 1993 wtl1 be sprinkled by October 31, 1993, All planted areas completed in 1994 w~11 be sprinkled by October 31~ 1994. f.) The Installation of the outdoor trash enclosures will be completed by October 31, 1994. g.) The front display area will be completed by October 31~ 1993. However~ the part,es agree that the front dtsplay area can be paved with concrete and b~tum~nous. h.) The islands in the transport lane area w~11 be ~nstalled by October 31~ 1994. i.) Erosion control measures of grading and sesdtng tn a form and manner approved by the City Engineer shall be completed by October 31, 1993. The erosfon control measures shall apply to all unpaved areas. j.) The C~ty agrees to waive indefinitely the requirement tn the Contra~t that Autohaus and Boettcher pave the body shop and repair storage area. However~ ~f Autohaus and Boettcher elect to pave the body shop and repair storage area at some point ~n the future~ then Autohaus and Boettcher will be required to insta11~ prior to said paving~ the public storm water drainage ~mprovements requtred by paragraph 3 of the Contract. And~ prior to ~nstalltng said storm water drainage tmpPovements~ Autohaus and the City must agree on the responsibility for payment of the cost of satd storm water drainage improvements, 2 JUN-- 7--'9 ~ NON I 5 : 09 CO R R I C K & SONI) RALL P . 05 Nonmerge¢. 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, and 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, releasedj or terminated. 6. ~ecu~. The subdivision bond or other security required of Autohaus and Boettcher to ensure their performance under the Contract shall be reduced to $1,000.00. 7. Effect ~_o~_Addendum, The parties agree that this Addendum shat1 not change the other provisions of the Contract, which shall remain in full force and effect. This Addendum shall be construed as supplemental to and not inconsistent with the Contract. The parties further agree that a breach of this Addendum shall also constitute a breach of the April 4j 1991 Uortgags~ Security Agreement and Fixture Financing Statement given by Boettcher to secure the April 4, 1991 Mortgage Note executed by Boettcher. Autohaus further agrees that the assignment of the Certificate of Deposit given as financial security to insure performance of the Contract shall subject to reduction as set forth above, also extend to secure performance under this Addendum. CITY OF NEW HOPE Dst ed: By It s MaYor.' Dst ed: By Its City Manager AUTOHAU$ OF MINNEAPOLIS~ INC, Dated: By Its President Dated: Thomas W. Boettcher, ~ndividually 3 JUN-- ~--95 MON 15 : 09 CORR I CK ~ SoN~RALL P . 06 STATE OF MINNESOTA ) } ss, COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this day of , 1993, by Edw. J, Ertckson and Dante1 J. Donahue, the Mayor &nd City Manager, respectively, of the City of New Hope, & Minnesota municipal corporation, on behalf of said municipal corporation. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEP[N ) The foregoing was acknowledged before me this day of ...... , t993, by .... , the President of Autohaus of Minneapolis, Inc., a Minnesota corporation, on behalf of said corporation. Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this day of ..... , 1993, by Thomas W. aoettcher, individually. Notary Publlc This Document drafted by: CORRICK & SONDRALL, A PARTNERSHIP OF PROFESSIONAL CORPORATIONS 8525 Edtnbrook Crossing, #203 Brooklyn Park, MN 55443 (612) 425-5671 c:\wp51\autoh&us.add 4 JUN-- 7--9:5 M O N 1 5 ." 1 8 C O R R I C K & S O N D R A L L P . O 7 That, par't, of Lot 9, "Auditor',~ Subdivision Number 324, Hennepin Count, y, Hinnesot, a" desct'ibed as follows: Beginning a~ ~he intersection o~' bhe mos~ northerly 14ne of said Lo~ 9 and a line hereinafter referred ~o as Line "A" being a line dr'awn from point on the south ]~ne of ~aid Lot 9 distant 650,60 feet easterly from the west Quart'.er corner of Section 17, Township 118, Range 2t ac f~easured along said south line and it~ west:.er ly ext.e~sion a p~.~i~t; on said most fl(~r'l;h(.,r'~y l ifil* (,f .~nid i.ot; 9 dlt~ta~ 653.30 feet easterly ¢'r'em t,l~e wet,t', line o? said Section ~7 as, measured along said nor'~herly line and i~s wemter'ly ~,x~.e~sio~; thee)ce westerly along said mos~ northerly line ~o ~he northeast corner of Lot 7 in said "Auditor's Subdivision Number 324, Hennepi~ County, Hinneso~a"; thence southerly a]of~g the east ~ine sa~d Lo~ 7 ~o ~he southeast corner of Lot 7; ~hence westerly along ~he sou~h line of said Lot 7 a distance o¢ ~.OO ¢ee~; thence southerly parallel with ~he southerly extension of ~he eas~ line of said Lo~ 7 ~o a line drawn parallel with and distant 611.50 ¢ee~ north of' ~l~e south line of said Lot 9; ~hence easterly parallel with said sou~h line ~o i~s fntersec~ion with said Line "A"; ~hence northerly along sa~d Line "A" tO ~he actual of beginning. Tha~ par'& of Lo~ 9, "Auditor's Subdivision Number 324~ Hennepin County, Hinneao~a" described as fo33ows: Commencing a~ the intersection of ~he most Northerly line of said Lo~ 9 and a l~ne hereinafter referred ~o as Line "A" being a line drawn from a poin~ on ~he Sou~h line o¢ said Lo% 9 distant 650.60 fee~ Easterly from the Wes~ Quarter corner o¢ Section 17, Township 118, Range 21 as measured a~ong said South line and i~s Westerly extension ~o a ~otn~ on said most Northerly 3ina Lo~ 9 dis~an% 653.30 feet Easterly from the Wes~ line o¢ said Section 17 as measured along safd mos~ northerly 3ina and its Westerly extension; ~hence We~terl.y along said most Northerly l'ine n distance of ~0 feet [o ~he actual ~oint o¢ beginning; ~hence J' U H-- 7-- ~ S M 0 N 1 5 ; · ! C 0 R R I C K & S 0 H ~ R~ ~ I_ P . 0 $ continue Westerly along said most Norther'Ix line to the Northeast corner of Lot 7 in said "Auditor's Subdivision Number 324, Hen~tepin County,, Hinnesota"; thence Southerly along Lhe East line of! said Lot 7 and along the Southerly extension said East line of Lot 7 to a point distant 100 feet Southerly from the Southeast corner of said Lot 7 thence Easterly parallel with the Easterly extension of the South line of said Lot 7 a distance of 40 feet; thence Southerly parallel with said Southerly extension of the East line of Lot 7 a distance of 50 feet; thence Easterly parallel with sa~d Easterly extension of the South line of Lot 7 to the intersectio~ with said Line "A"; thence Northerly along said Line "A" to the intersection with said Easterly extension of the South line of Lot 7; thence Westerly along said Easterly extension of the South line of Lot 7 to the tntersec%ion with a line drawn Southerly parallel with said Line "A" from the actual point of beginning; thence Northerly parallel with said Line "A" to the actual point of beginning, according to the recorded plat thereof. and is proposed ~o be known as Lot 1, Block 1,i Autohaus Addition. LEASING & SALES/FOREIGN AND DOMESTIC AUTOMOBILES Audi March 18, 1993 FORD Mr. Dan Donahue, City Manager Mr. Kirk McDonald Management Assistant/Community Development Coordinator NISSAN City of New Hope 4401 Xylon Avenue North HONDA New Hope, Minnesota 55428 RE: Addendum to City of New Hope Development Contract C H RYS LER 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 BMW complete the proposed work as soon as practical, but would reiterate some of the ~things that I told you of. MERCEDE$ 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. ACURA 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 I 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 ~ Minneapolis, MN 55427 W (612) 555-5707 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. I 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, ' , / Thon~a~Bo~t?cher, President Thongs P~([ul O~streich, Vice President CITY OF NEW HOPE DEVELOPMENT CONTRACT THIS AGREEMENT, made and entered into on the date specified paragraph 15d hereinafter, by and between the City of New Hope, a Municipal corporation of the State of Minnesota (hereinafter called the City), and the Owners or Subdivider identified ,in. paragraph 15a herein (hereinafter collectively called the Developer whether singular or plural), WlTNESSETH: WHEREAS, the said Developer has applied to the City for approval of a plat or subdivision of certain land within the City as identified in paragraph 15c herein, and WHEREAS, The Economic Development Authority in and for the City of New Hope (hereafter EDA) has provided to ADeveloper a $187,500.00 loan evidenced by a Mortgage Note dated Statementand secured dated by a Mo~t~age,.Securit~~.//I~%¢/~'/~/ Agreement and and Fixture Financing WHEREAS, Developer acknowledges and agrees that any breach cf the 'herein Development Contract shall be deemed a default b., Developers of the terms of the Mortgage Note and Mortgage, Security Agreement and Fixture Financing Statement permitting the EPA to declare any unpaid principal and accrued interest of the referenced ]pan immediately due and payable upon demand by the EPA and ~urthe- permitting the EPA to commence a foreclosure action to collect sale monies pursuant to the terms of the Mortgage Note and Hortgage, Security Agreement and Fixture Financing Statement, and WHEREAS, it is not presently feasible to complete such improvements, and the Developer is desirous of proceeding at once, and the City Council has approved or agreed to approve said plat on the conditions (1) that the Developer enter into this Development Contract, which Contract defines the work which the Developer undertakes to complete within the boundaries of said plat as described hereinafter, (2) that the Developer provlde a Pond or other collateral for an amount and with a surety and conditions satisfactory to the City, to secure the actual construction and installation of such improvements within the period specified by the City, and (3) that the Developer enter into all financing documents required by the EDA to evidence and secure the Developer's repayment of the EDA loan, NOW, THEREFORE, the City and Developer agree as follows: 1; The recitals above and the provisions of the Platt~n~ Chapter of the New Hope City Code, as amended to date hereof, are incorporated herein by reference. 2. The Developer agrees ~p make all private improvements as shown on the February 7, 1991 revised site plan prepared by Westwood Professional Services, ~nc. attached hereto as Exhibit A within one year from the date of this agreement, except as this period of time is extended by resolution of the City Council. The Developer agrees to perform and complete any additional conditions as set forth in paragraph 15e under these same terms and conditions. These improvements shall include but not be limited to the following: a. Installation of concrete curb around entire property as shown on site plan. b. Installation df bituminous paving in the body shoo and repair storage area as shown on the s~te plan. c. Planting of the following vegetation and landscaping as shown on the site plan: i. 150 Andorra Junipers to be planted on ncrtm and east side of property, size 18", spacing 3' d.C. ii. 6 Andorra Junipers to be planted on ~orthea$c corner. (inside "L") of building, size 18", spacing 3' o.c. iii. 33 Pfitzer Junipers to be planted on east side of property, size 18", spacing 3' p.o. iv. 18 Techny (Mission Strain) American'Arborvitae to be planted on west side of property, size 36 inch pot, spacing 15 feet d.C. with weed barrier and rock mulch. v. 16 Isanti Dogwood to be planted - 10 on southeast corner of building and 6 on southwest corner of building, size 24", spacing 4' d.C. vi. 1 Green Ash to be planted on southeast corner of building, size 2.5' 2 vii. 29 Austrian Pine to be planted on west property line on County Kitchen property, size/root 6' d. Installation of six foot opaque security fence (chain link with barbed wire) around perimeter of body shop and collision repair storage area as shown on site plan. e. Installation of white sodium vapor wall lights and freestanding overhead lights as shown on the site plan. The overhead light poles shall match. existing City street lighting. f. Installation of acceptable automatic sprinkler systems in all planted areas. g. Installation of outdoor trash enclosure on south side of building constructed of 6 foot block wall painted to match building. ; h. Installation of bomanite paving in fhont display area as shown on site plant. i. Construction of four painted islands in the Transoort Lane area as shown on the site plan. Furthers, the Developer acknowledges and agrees that development of the site will comply in all respects with the terms, conditions aha regulations of the New Hope City Code. These conditions include but are not limited to, compliance with the following: j. All setback provisions of the zoning code and more specifically, that there be a 5 foot setback for all parking and storage areas and driveways from the rear and side property lines. k. That all signage on the site fully comply with the sign code. 1. That all on-site parking requirements of the zoning code are fully complied with and more specfically, that a minimum of 81 parking spaces are provided, that 3 handicapped parking stalls are provided on the east side of the building and 2 handicappea parking spaces are provided on the west side of the building, that all parking areas be properly striped w'~h the exception of the display area and body shop/collision reoair storage area, and that employee parking be provided on the west side the building. m. That all drive aisles are 24' or more in width. n. That the loading-and unloading areas are provided on the south side of the building. o. That on-site snow storage be allowed only in the southeast corner of the orooerty and that use of parking spaces will not be permitted for snow, storage on-site. p. That all sales/leasing/rental display areas, both indoors and outdoors, comply fully with all area requirements of the City Code. q. That the construction plans for the .outdoor body shop and collision repair storage area are approved by the Building Official and Fire Chief. r. That no other tenant will be allowed to occupy the space currently being occupied by Universal Colour Laboratories and that upon the expiration of its lease or any options to renew said lease, developer will construct or improve the property with the showroom and display area as shown on Exhibit A. Further, while the tenant occupies the proposed showroom and display area, developer agrees that the parking display area shown on Exhibit A front of said area will not be permitted for display but shall be reserved for emoloyee and customer parking of the tenants. 3. The Developer also agrees to construct within one year from the date of this agreement public improvements for storm water drainage and erosion control and that it has submitted a September 12, 1990 Paving, Grading, Drainage and Erosion Control Plan prepared by Westwood Professional Services, Inc. indicating the improvements it hereby agrees to construct. Said plan has been reviewed and approved by the City Engineer and Developer shall implement this plan and construct all improvements indicated thereon. The parties agree the improvements indicated on said plan are necessary for adequate drainage and erosion control at the site. Developer further agrees to complete any improvements not indicated on the plan but reasonably necessary to facilitate tme purpose of the plan in the sole opinion of the City Engineer. Such construction shall be subject to inspection and approval of the City. The parties further understand and agree that approval by the City and its Engineer does not constitute any warranty or guarantee to the Developer and that the Developer has relied on its own judgment or westwood relative to the adequacy of this plan. The City and its Engineer have reviewed this plan solely for the purpose of determining its ability to conform with the City's overall storm sewer plan. Upon the completion of the work and construction required to 'be' done hereunder, said storm water drainage improvements shall become the property of the City, without further notice or action on the part of either party hereto, other than acceptance at usage. 4. The Developer shall pay for all costs of persons doing work or furnishing skill, tools, machinery or materials, or insurance premiums or equipment or supplies and all just claims for the same, and the City shall be under no obligation to pay the Developer or any subcontractor any sum whatsoever' on account thereof, whether or not the City shall have approved the subcontract or subcontractor, and the Developer and its surety shall hold the City harmless against any such claims, and provide the City with all necessary lien waivers. 5..~ In the event of default by the Developer as to any of the work to be performed hereunder, the City may, at its option, perform the said work and the Developer shall promptly reimburse the City for any expense incurred therein by the City, provided the Developer is first given written notice by United States Mail of the work in default and required to be done by the Developer, not less than 48 hours being given thereby to the Developer to remove the default status, said notice being addressed to the Developer at the address sho wnin paragraph 15b herein, notice given in this manner being sufficient as described, by agreement of the parties hereto, Notice to the Developer shall also constitute without further action, notice to any contractor or subcontractor, whether they are approved and accepted by the City or not, In the event of emergency, as determined by the City Engineer, the 48 hours notice requirement to the Developer shall be and hereby is waived in its entirety by the Developer, and the Developer shall reimburse the City for any expense so incurred by the City in the same manner as if mailed notice as described hereinbefore had been given, It is understood by the parties, however, that the responsibility of the Developer is limited by strikes and force majeure, 5 6. The Developer agrees to hold the City harmless from any and all claims which may arise from third parties, including contractors or subcontractors for damages sustained resulting from the performance or failure of performance of the above-described work or the work required in paragraph 15e. 7. The Developer agrees ~ reimburse the City for all costs incurred by the City in the enforcement of this contract, or any portion thereof, including court costs and reasonable engineering and attorney's fees. 8. The Developer shall deposit with the City a satisfactory' Subdivision Bond for the work specified in paragraph 3, which shall be in the amount described in paragraph 15f, securing the full performance of this Development Contract. The term Subdivision Bond as used herein shall also include any type of Collateral agreement or security accepted by the City. It is understood and agreed that failure of the City to p~omptly take action to draw upon the bond to enforce this agreement after the time of expiration by which the work is to be completed w~11 not:waive, estop or release any rights of the C~ty and the City can take action at any time thereafter to require completion of the work and payment for same. These provisions shall be applicable to any person who gives security for or guarantees the completion of this agreement. 9.'~ The Developer unconditionally guarantees to the City all work required to be performed by paragraph 3 for a period of one year subsequent to acceptance of same by the City against poor material, faulty workmanship, or any other failure of the work, whether or not all or any portion of the Subdivision Bond shall have been released by the C~ty. 10. The Developer shall clear any so~l, earth or debris f~om the streets resulting from building on the land w~thin the addition by the Developer or its agents, successors or assigns, and shall restore any gravel base deteriorated by mix,n9 construction oF excavation debris or earth, and repair any damage ~o b~tuminous surfacing resulting from the same causes. 11. The Developer agrees that the City at its ootion can install and construct any work or improvements required by paragraph 3 to be made by the Developer, and the Developer agrees to pay all costs so incurred by the City, 12. The par~es agree the breach of any terms of this Agreement by the Developer shall be grounds for denial of building permits for building within the addition until such breach ~s corrected, either by the City or the Developer, as t~e case may be. 13. If any portion, section, subsection, sentence, clause, paragraph or phrase of this Development Contract is for any reason held to be invalid, such decisions shall not affect the validity the remaining portiOn of this Agreement. 14. This Contract shall be' binding upon the parties, their heirs, successors or assigns as the case may be. The parties understand and agree %hat the Developer is responsible under the terms of.this Contract for the acts or omissions of any of !ts agents and successors in title. 15. a. The term "Developer" as used herein refers to: Autohaus of Minneapolis, Inc. and Thomas W. Boettcher, individually b. The address of the Developer, for purposes of th~s Development Contract is as follows, and any notice : mailed by the City to this address sh~]l be deemed sufficient notice under this Contract, until notice of a change of address is given to the City in writing: 7709 42nd Avenue North ,,. New Hope, MN 55427 Phone: (612) 535-5707 c. The legal description of the premises to which Development Contract applies consists of premises in the State of Minnesota, County of Hennepin, to- wit: That part of Lot 9, "Auditor's Subdivision Number 324, Hennepin County, Minnesota" described as follows: Beginning at the intersection of the most northerly line of said Lot 9 and a line hereinafter referred to as Line "A" being a line drawn from a point on the south line of said Lot 9 distan~ 650.60 feet easterly from the west Quarter corner of Section 17, Township 118, Range 21 as measured along said south line and its westerly extension a point on said most northerly line of said Lo% 9 distant 653.30 feet easterly from the west line cf said Section 17 as measured along said most northerly line and its westerly extension; thence westerly along said most northerly line to the northeast corner of Lot 7 in said "Auditor's Subdivision Number 324, Hennepin County, Minnesota"; thence southerly along the east line of said Lot 7 to the southeast corner of Lot 7; thence westerly along ~he south line of said Lot 7 a distance of 5.00 feet; thence southerly parallel with the southerly extension of the east line of said Lot 7 to a line drawn parallel with and distant 611.50 feet north of the south line of said Lot 9; thence easterly parallel with said south line to its intersection with said Line "A"; thence' northerly along said Line "A" to the actual point of beginning. That part of Lot 9, "Auditor's Subdivision Number 324, Hennepin County, Minnesota" described as follows: Commencing at the intersection of the most Northerly line of said Lot 9 and a line hereinafter referred to as Line "A" being a line drawn from a point on the South line of said Lot 9 ~ distant 650.60 feet Easterly from the West Quarter corner of Section 17, Township 118, Range 21 as measured along said South line and its Westerly extension to a point on said most Northerly line of Lot 9 distant 653.30 feet Easterly from the West line of said Section 17 as measured along said most " northerly line and its Westerly extension; thence Westerly along said most Northerly line a distance of 50 feet to the actual point of beginning; thence continue WeS'terly along said most Northerly line ko the Northeast corner of Lot 7 in said "Auditor's Subdivision Number 324, Hennepin County, Minnesota"; thence Southerly along the East line of said Lot 7 and along the Southerly extension of said East line of Lot 7 to a point distant 100 feet Southerly from the Southeast corner of said Lot 7; thence Easterly parallel with the Easterly extension of the South line of said Lot 7 a distance of 40 feet; thence Southerly parallel with said Southerly extension of the East line of Lot 7 a distance of 50 feet; thence Easterly parallel with said Easterly extension of the South line of Lot 7 to the intersection with said Line "A"; thence Northerly along said Line "A" to the intersection with said Easterly extension of the South line of Lot 7; thence Westerly along said Easterly extension of the SOuth line of Lot 7 to 8 the intersection with a line drawn Southerly parallel with said Line "A" from the actual point of beginning; thence Northerly parallel with maid Line "A" to the actual point of beginning, according to the recorded plat thereof. and is proposed to be known as Lot 1, Block 1, Autohaus Addition. d. The date of this Development Contract is: e. Requirements additional to those listed in paragraph 2 are as follows: Oeveloper shall raze the office building commonly known as the Animal Hospital pursuant to an Agreement to Raze 7875 42nd Avenue North attached hereto as Exhibit B. The cost of demolition and removal shall be the sole cost of the ~eveloper. Also Developer shall be required to comply with all of the conditions of its Preliminary Plat approval and Conditional Use ~ Permit to allow for outdoor sales in a B-3 zoning district established by City Resolution Nos. 8g-23g and 90-24 attached hereto as Exhibits C and 0 respectively. f. The total amount of the Subdivision Bond required to secure the performance of the work required by paragraph 3 is initially set at Twenty Six Thousand Two Hundred. Eighty Dollars, ($28,280.00), and is agreed to ~y the Developer, and shall be in the form of: / / Cash deposited with City at no interest. / / IrreVocable Letter of Credit for one year, cancellable on 30 days' written notice to City thereafter. / / Corporate Surety Bond. / X / Assigned Savings Certificate, Interest to Developer. The parties agree that from time to time, but not more frequently than annually, the Developer may request that the City Engineer evaluate the work remaining to be done hereunder by the Developer, and the amount of bond may be reduced by City Council action to such dollar amount as deemed necessary for the City Dy the Engineer. The parties agree that formal action taken by the City Council in reducing the amount of the bond as initially set h~rein shall constitute sufficient evidence, as public record, of the change in bond amount and the pa~ties waive written modification of this Development Contract as to such reduceC bond requirement. IN WITNESS WHEREOF, we have hereunto set our hands and seai$. Aut apo nc. By Its 10 STATE OF MINNESOTA ) ) ss. COUNTY OF HENNEPIN ) The fod'ego, ing instrumenl: was acknowledged before me this day of /~.7~/~ .'/' , 199;__, by EDW. J. ERICKSON and DANIEL J. DONAHUE, ~he Hayor and Hanager, res~ec[~ve~y, of [he C~y of New HoDe, a mun~c~pa~ corpora%~on of ~he S~a[e of H~nneso~a, on beha)f of sa~d mun~c~pa~ corporation. Notary ~u~lic STATE OF HZNNESOTA ) ~ ~ ~m,~,~, [~0,r,s ~0, 9. ,~ COUNTY OF HENNEPZN ) The f~reg~ing ins~rumen[ was ac~w]edged, before ~,=his , resDec~ive]y, oF Au~o~aus H~nneaDo~is, [nc., a cotDota[ion undet ~he laws o~ ~he S[aCe Hinneso~a, on beha]F o~ sai:d cotpo~a[ion. No[aty Public ~ ~orA~v STATE OF HZNNESOTA ) ~ ~Y HENNEP~NCCbN~ ) SS · ~ M~ Comm~10~ Eso~res Nov 9. ]g93 COUNTY OF HENNEPZN ) The f.o~o~ng ins%tureen% was acknowledged before me this day of .~ ;;.~.'~' , 199 /~ , by Thomas W. Boectcher, Notary Public ssociates · Ga~y W'. Moren, CE. ~.,e~ Ma~ine/. PE. Charles A. Eelckson ~u,~, ...... ... ,etetSOn, PE. Ma~k D. ~llJs. RE. Leo M. Pawelsky ......... Mk~ha~ C. Lynch. PIE. T1~rnaS R. Anderson. A.LA. I-tarlan M. Olso~ Engineers & Architects James R. Maland. eE. Oa~y I~ Rylander. PE. December 18, 1990 Corrick & Sondrall 3811 W. Broadway Minneapolis, Minnesota 55422 Attn: Steve Sondrall Re: Autohaus Our File No. 34-Bond Dear Steve: . The Autohaus project requires a public storm sewer be constructed ~thru the site and a retention pond for treatment. These facilities serve two properties (Autohaus and School District) therefore easements must be dedicated over each facility and a development bond must be provided equal to their cost. Listed below is a breakdown of the cost for these public improvements: 338 L.F, RCP Storm Sewer w/Structures @ $40/L.F. $13,520.00 Lump Sum Treatment Pond @ $3,000/L.S. 3,000.00 Lump Sum Erosion Control @ $1,000/L.S. 1,000.00 Total $17,520.00 + 50% Bond Increase 8,760.00 $26,280.00 The estimated bond amount is $26,280 which includes 50% bond increase. If you have any questions please contact this office. Yours very truly, ONVS 90,/ os ,& SOCInT S, r c. Mark A. Hanson MAH:dh cc: Daniel Donahue Kirk McDonald L2/17 2335 ~/est Highway 36 * St. Paul, Minnesota 55113 * 612-636-4600 DI~I~LAY AIIF. A MUST BE ELIMINATE PARKING ST~LL$ · -* _ .~,.TIIA~K BIRIS**T BE IMCREASED ,--, o I i - -' *- .... I?.~.~-I~.- ,',mm~ --- =- - -----. I:--I~. I: Ii~' EXHIBIT A - Revised Site Plan (12/28/89)