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)