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051192 EDAOFFICIAL FILE COPY CITY OF NEW HOPE EDA AGENDA EDA Regular Heeting #6 Agenda #7 President Edward J. Erickson Commissioner W. Peter Enck Commissioner Gary L'Herault Commissioner Gerald Otten Commissioner Marky Williamson Hay 11, 1992 2. 3. 4. e o Call to Order Roll Call Approval of Minutes of April 27, 1992 Request for Extension on Development Contract Improvements - Autohaus (Project #467) Discussion Regarding City-Owned Property at Southwest Corner of 42nd/Nevada Avenues Adjournment Approved EDA Minutes Meeting #5 CITY OF NEW HOPE 4401Xylon Avenue North Hennepin County, Minnesota 55428 April 27, 1992 CALL TO ORDER ROLL CALL APPROVE MINUTES 42ND/NEVADA SOIL CLEANUP (#462) Item 4 EDA RES. 92-02 Item 4 WINNETKA WEST PROJECT (#466) Item 5 President Erickson called the meeting of the Economic Development Authority to order at 10:31 p.m. Present: Erickson, L'Herault, Otten, Enck, Williamson Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes of April 27, 1992. Voting in favor: L'Herault, Otten, Enck, Williamson; Abstained: Erickson. Motion carried. President Erickson introduced for discussion Item 4, Resolution Awarding Contract to Kevitt Excavating, Inc. for Excavation and Treatment of Gasoline Impacted Soils at 42nd/Nevada Avenues, Project No. 462. Bids were opened on April 21st for the excavation, treatment and/or disposal of "source area" gasoline impacted soils at 42nd Nevada avenues. Five bids were received and the low bid was submitted by Kevitt Excavating, Inc. in the amount of $57,016. Northern Environmental, the city's consultant for this project, recommends awarding the bid to the low bidder. The soils will be excavated and disposed of by land application at an MPCA approved site. The work is expected to take place the second week in May. Commissioner Otten introduced the following resolution and moved its adoption: "RESOLUTION AWARDING CONTRACT TO KEVITT EXCAVATING, INC. FOR EXCAVATION AND TREATMENT OF GASOLINE IMPACTEO SOILS AT 42NO/NEVADA AVENUES, PROJECT NO. 462 - $57,016". The motion for the adoption of the foregoing resolution was seconded by Commissioner Enck, and upon vote being taken thereon; the following voted in favor thereof: Erickson, Enck, L'Herault, Otten, Williamson; and the following voted against the same: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. President Erickson introduced for discussion Item 5, Motion Authorizing Executive Director to Sign Certificate of Completion for the Winnetka West Barrier-Free Housing Project (#466). New Hope EDA Page 1 April 27, 1992 MOTION Item 5 NEW HOPE TERRACE APARTMENTS Item 6 A condition of the Development Agreement is that the EDA will furnish a certificate of completion certifying that all obligations of the developer have been completed in the construction of the project. Motion was made by Commissioner Enck, seconded by Commissioner Williamson, to authorize the Executive Director to Sign Certificate of Completion for the Winnetka West Barrier-Free Housing Project (#466). All present voted in favor. Motion carried. President Erickson introduced for discussion Item 6, Discussion Regarding Request by LaNel Financial Group, Inc. to Amend Assessment Agreement for New Hope Terrace Apartments. The EDA resumed discussions previously held on March 23, 1992, and April 13, 1992. Mr. Donahue explained that LaNel Financial Group is requesting that the City amend its assessment policy regarding the New Hope Terrace project. The assessment policy was developed at the time of the original construction in 1986 which had a minimum market value and required a 2% escalation of that market value every year. In 1993, that market value will be at $6.4 million. They are requesting an amendment to the assessment agreement that would allow the county assessor to set the market value for 1993 and that would be the minimum amount or floor that the market value could not go under for the life of the bond issue through the year 2004. If the City agrees to the amendment, LaNel will retain ten of the thirty units for low to moderate income housing. LaNel is projecting that the average subsidy will be $230 per month. For ten units this would amount to approximately $28,000 per year. President Erickson interjected that the City needs to ensure that the "floor" is beneficial to the City of New Hope in that it would never be so low that the bonds could not be paid. Mr. Donahue stated that if the EDA wishes to pursue this change, he would discuss the specifics with Hennepin County. He noted he personally would like the EDA to grant the request to LaNel as it would save ten of the subsidized units. However, on the down side, the City's risk is increased since the bonds are not yet paid off. He New Hope EDA Page 2 April 27, 1992 pointed out that certain things can happen which may be out of the City's control (i.e. if the new owners file bankruptcy) and there may not be adequate reserves to pay the bonds. Mr. Sondrall, City Attorney, noted that taxes will have a priority even in a bankruptcy case. The value of the property may decline during a bankruptcy case since the building may be allowed to deteriorate. President Erickson responded favorably to the amendment to the assessment policy since 1) it would allow ten out of the thirty renters to remain until the year 2003; 2) there will be cash flow to maintain and upkeep the premises; and 3) the new owners are stable and experienced in rental management. Mr. Paul Brewer, President of LaNel Financial Group, Inc., was recognized. He reiterated their proposal to retain ten units in exchange for readjustment to the property's market value. He reviewed planned improvements to the property including patio maintenance, caulking of siding, exterior staining/painting, landscaping, insulation to the pipes in the underground garage to reduce heat loss, wallpaper border and lighting in hallway, carpet replacement, and a new identification sign. He presented a chart showing the net cash flow with a reduction of taxes to 5 million and also based on.5.5 million. Mr. Greg Bronk of LaNel addressed the EDA. The current taxes are $268,000 based on a $6,267,000 value. If the value is reduced to $5,000,000, the taxes would be reduced to $203,207 or $65,000 reduction. The cost of the ten low income units would average $27,600 annually. Therefore, the net reduction of taxes would be $37,800. He next reviewed taxes based on a $5,500,000 value. The taxes would be $223,000 or a $45,000 reduction. After the ten unit subsidy, the net reduction of taxes would be $17,500. He stated the additional cash flow created by reduced taxes will be used to partially fund the fore- mentioned improvements. Commissioner Otten questioned whether there is any legal precedent. He remarked of the circumstances where a private contract is being altered to provide a trade-off between taxes and low-income housing. New Hope EDA Page 3 April 27, 1992 Mr. Sondrall replied that he does not believe there is a legal precedent. The EDA is considering re-negotiating the assessment agreement. He stated it will not affect other agreements currently in effect. Mr. Donahue stated he has learned of assessment agreement modifications made by other cities; namely St. Anthony and Bloomington. However, he was not aware of any specific instances where the changes were made for a direct housing subsidy. Mr. Sondrall stated there is a legitimate public purpose if the EDA desires to amend the agreement. The EDA must protect the City in meeting the financial obligation of the bonds as well as to ensure quality housing for low to moderate income persons. Commissioner Williamson questioned whether there would be any surplus if the market value was lowered. Mr. Donahue stated the surplus will be less than if the agreement is not amended. Certain provisions could be made in the agreement to act as safety nets. Commissioner Enck commented that he does not believe New Hope has the prerogative to use the bonds as requested. The amendment would have an adverse affect on all New Hope tax payers, school district, and the county. He noted LaNel purchased the property as a distressed sale buying a 5.5 to 6.0 million dollar structure for 5 million dollars and the corporate profits could be utilized to subsidize the low to moderate income units. President Erickson pointed out that the other taxing districts will not receive any tax dollars until the bonds are paid off. As soon as a complex starts creating a negative cash flow, maintenance and upkeep decreases which in turn draws a different clientele. The new owners have no legal obligations to retain any low to moderate income units; however, LaNel is willing to compromise in exchange for lower taxes. If the City does not assist, there will be no low to moderate income units in the building. The petitioners are good owners as proven by Anthony James and Broadway Village Apartments operations in the City. Commissioner L'Herault conveyed that he agrees with Commissioner Enck in that the owners were aware of the assessment agreement when they made the purchase. He expressed empathy that tenants may be evicted since they cannot afford the full rent. He continued by stating on the other hand LaNel would be saving $65,000 for retaining only ten people in the apartment building. New Hope EDA Page 4 April 27, 1992 MOTION Item 6 President Erickson asked Mr. Donahue to explain the actual cost to the City. Mr. Donahue stated the City would give up a certain tax flow that goes into the tax increment issue. He stated there is a $532,000 fund balance and anything in excess of the principal and interest goes into the reserve balance which is saved over time. In the year 2003, when the final interest and principal payments are made, the County divides the money by the taxing jurisdictions. He projected that the current assessment agreement would bear the City $250,000. He stated if the proposal is accepted and the value is set around $5 million, the City's share would be lowered to $100,000. · President Erickson suggested tabling the item until the County could establish the market value and the City Attorney could prepare a draft agreement. Commissioner Williamson questioned whether the EDA could determine the market value rather than the County. Mr. Donahue stated if the value does not appear to be a safe enough amount, an escalator could be built into the contract in order to minimize the City's risk. Commissioner Otten stated he is pleased that LaNel has purchased the property but feels the EDA should not be making amendments to the assessment agreement at the taxpayers' expense. Commissioner Williamson reported on the difficulty she experienced reaching her decision on the matter. She commended LaNel for wanting to negotiate a possible solution to the housing problem. She-encouraged them to solve the problem and maintain the 10-30 units on their own. She pointed out that as an elected official the situation has to be viewed as to how it impacts the city as a whole, and she does not feel she can support it. Commissioner Otten stated he wants to see the new owners make a success of the operation. He noted his concern with the compromise being based on the low to moderate income housing issue. He remarked that the current assessment agreement does not appear to jeopardize the financial standing of the new owners or prevent them from running a successful operation. Motion was made by Commissioner Enck, seconded by Commissioner L'Herault, to make no amendments to the assessment agreement for New Hope Terrace Apartments. New Hope EDA Page 5 April 27, 1992 AD~OURNHENT Voting in favor: Williamson, L'Herault, Otten, Enck; Voting Against: Erickson. Motion carried. Motion was made by Commissioner L'Herault, seconded by Commissioner Otten, to adjourn the EDA meeting as there was no further business to come before the Council. All present voted in favor. The New Hope EDA adjourned at. 11:20 p.m. Respectful ly submitted, Valerie Leone City Clerk New Hope EDA Page 6 April 27, 1992 1 REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA 5-11-92 Item No. By: Kirk McDonald By: 4 Management Assistant CONSIDERATION OF REQUEST FOR EXTENSION ON DEVELOPMENT CONTRACT IMPROVEMENTS, AUTOHAUS, INC., 7709 42ND AVENUE NORTH On April 4, 1991, Autohaus, Inc. and the City of New Hope executed a Development Contract regarding specific improvements to be made to the Autohaus property such as the installation of concrete curb, landscaping improvements, paving and lighting improvements, construction of storm water drainage improvements, and the demolition/removal of the Animal Hospital building. The Development Contract states that the "Developer agrees to make all private improvements as shown on February 7, 1992, revised site plan...within one year from the date of this agreement, except if this period of time is extended by resolution of the City Council". April 4, 1992, marked the end of the one year period and while certain improvements have been completed, others have not been completed. Staff contacted Autohaus in March and recommended that if they do not intend to complete the improvements by the April 4, 1992, deadline that they should seek an extension of time from the City Council prior to the expiration date and the petition for extension should explain the circumstances necessitating the extension. Autohaus submitted the enclosed petition requesting an extension and appeared at the March 23rd EDA meeting. The request was tabled until a specific schedule was developed that addressed the completion of the improvements. Staff met with Autohaus on April 7th to discuss their request and Autohaus indicated that the construction of the development contract improvements was contingent upon working out a solution to their current financing problems. Staff met with Autohaus again on May 5th at which time they provided specifics on the completion of the improvements and this information will be presented to the EDA on May 1 l th. MOTION BY ~./~./~_ ~ SECOND BY ~,i~ ~_ __ Review: Administration: Finance: RFA-O01 ~ _ o[Mim e polb, I.c LEASING ge SALES/FOREIGN AND DOMESTIC AUTOMOBILES Audi GM March 18, 1992 FORD NISSAN HONDA City of New Hope 4401 Xylon Ave. N. New Hope, MN 55427 Subject: Development Contract Improvements Dear Dan and Kirk: CHRYSLER BMW MERCEDES A year has passed since executing our development contract. The date of April 4, 1991 was the date of final approval of our expansion plans. As of today, March 18, 1992, Autohaus has done as much as possible to complete improvements, although delays and economic times have caused an extension of one year to be necessary. We have demolished the old Animal Hospital building and improved the 42nd Avenue appearance. Delays in the' .:ity doing a practice fire and an early snow cover have also contributed to our'need for an extension. VOLVO ACURA TOYOTA Autohaus fully intends to finish these contract improvements in a timely manner considering our capability to pay as we go for improvements. Autohaus has ,:onstructic, n money set aside for the area's improvement but due economic times some improvements will need to be rebid an~ some Autohaus will do itself. The next stage is to pave the front area where the Animal Hospital building was, aOdress enhancing the view from 42nd Avenue. We would ask at this time to appear before the City Council POR$CHE on March 23rd and explain our request for an extension c.f time. JAGUAR S in r,~y, 7709 42nd Avenue North * Minneapolis, MN 55427 * (612) 535-5707 .:'gC~ Xy!om Aver~ue %~orfm New Ho~e tf~m-esc~ ~,:2~ ~cee ~.~ '.~' 2C :: , March 9, 1992 Mr. Thomas Boettcher, President Autohaus of Minneapolis, Inc. 7709 42nd Avenue North New Hope, MN 55427 Subject: DEVELOPMENT CONTRACT IMPROVEMENTS Dear Tom: On April 4, 1991, Autohaus, Inc. and the City of New Hope executed a Development Contract regarding specific improvements to be made to the Autohaus property, i.e. installation of concrete curb, land- scaping improvements, paving and lighting improvements, construc- tion of storm water drainage improvements, and the demolition/ removal of the Animal Hospital building. Paragraph 2, page 2, of the Development Agreement states that "Developer agrees to make all private improvements as shown on February 7, 1991 revised site plan...within one year from the date of this agreement, except if this period of time is ex'tended by resolution of the City Council" April 4, 1992, will mark the end of the one year period and while certain improvements have been completed, others have not been completed. If Autohaus does not intend to complete the improvements by the April 4, 1992, deadline, you should seek an extension of time from the City Council prior to the expiration date. The City Council next meets on March 23rd and the first meeting in April is on the 13th, so I would strongly recommend that if you plan on re~/esting an extension of time on the making of the improvements, that you do so at the March 23rd Council meeting. I would recommend that you follow the same procedure that the City Code outlines for zoning procedure extensions. The code states that "petition for extension shall be made in writing and filed with the City Manager and there shall be no charge for the filing. The petition shall include a statement of facts explaining the circumstances necessitating the extension". If you are going to submit a petition requesting an extension and want to have it considered at the March 23rd Council meeting, please submit the petition to the City by March 18th so that your request can be included on the agenda. Family Styled City ~ . ,~ For Family LivinI -2- Please contact me if you have any comments or questions and call (531-5119) to let me know your intentions regarding an extension on the installation of the improvements. Sincerely, Kirk McDonald Management Assistant/Community Development Coordinator KM/lb Encl: Excerpt/City Code Development Agreement CC: Dan Donahue, City Manager Steve Sondrall, City Attorney Mark Hanson, City Engineer Doug Sandstad, Building Official Valerie Leone, City Clerk Thomas Oestreich, Autohaus Project File #467 4.202 (n) (q) Record Before Council. The City Manager shall place the City Manager, on the agenda for the next regular Council meeting after Planning Commission action, oz' the expiration of 60 days after the first consideration by the Commission, whichever is earliez.. Such reports and recommendations shall of the City Council meeting. Council Action. Upon receiving the report and recommendation of the Planning Commission and the City Manager, the City Council may, at its option set and hold a public hearing if deemed necessary and shall ma~e findings of fact and impose any condition on approval w~ich it considers necessary to protect the public health, safety and welfare, and snell make its decision as to the application. Votes Required. Approval of a request for text amendment shall require passage by a 4/Sths vote of the full City Council, and a vote for a Conditional Use Permit, variance or vote of a ~ajority of a quorum of the City Council present Notice to Applicant. The City Manager shall notify the applicant of the decision of the Council Ln writing, including any relevant resolution and findings which may have been passed by the Council. Reconsid.eration. Whenevez. an application fez. a Special Council, a similaz, application affecting substantially the Commission oz. City Council before the expiration of six denials. Howevez., a decision to reconsidez, such matter may be made by not Lees than 4/Sths vote of the full City Council at any time, or und. ez. Robert's Rules of Oz.der. Ter~inat:ion of Specia~ Zoning Pz.ocedure Apoz.oval. If the woz.k or use authoz.ized by a Special Zoning Prec.:lure ~as not been implemented within a year aftez, final council approval, the said pz.ooedure shall automatically terminate unless a complete the work pursuant to the Special Zoning Procedure Specia~ Zoning Procedure. There shall be no charge for the fi~ing of a petition fez. extension. The petition include a statement of facts explaining the circumstances necessitating the extension. If a petition for ex=ensLon is Pz.ocedure for non-use, aftez, a hearing or hearings held in the same mannez, al fez. the original consideration of the Special Zoning Procedure, including notice to the applicant and his suocessoz, in interest, if any. If aftez, a hearing, original Special Zoning or ~ubs=an~iaX ~ar~, ~e ~unciL ~y ~e~inate or modify the authority or use 9reviousXy approve4 under ~he Special Zoning Procedure. 4-06 072684 O E V E L 0 ~ M E N T C 0 N T ~ A C r T~IS AGREEMENT, made and entered into cn the date s~ec'~'e; '~ paragraph 150 ~ere~nafter, Dy and Detween t~e C:t7 o~ '~ew -cee. called the City), and the Owners or Subdivider ~demt:F'e~ '- ~ar~grapm ~ta here~n (merelna~ter collect~ve]y called %ne Oeve~c:e~ .nether s~ngular or plural), WITNESSETN: w~EREAS, %me sa~d Developer ~as aopl~ed to %ne C~:y aooroval of a olaf cr Subdivision of certain land w~%~ t~e ''-.. ~s ~dent~Jed ~n paragraph 15c herein, amd wHEREAS, The Economic Development Authority ~n amc C~ty o~ New Nope (hereafter EPA) ~as OrOVlded tO ~Devg~per $187,500.00 loan ev~dence~ oy a Mortgage NOte dated and secured Dy a MoFtgage,.Secur~tY Agreement an~ ~x%ure =~nanc~g Statement dated /~F///~I. /~! , and wHEREAS, Developer acknowledges and agrees that any the herein Development Contract snatl De deeme~ a ;e~au Developers o~ the terms o~ tDe Mortgage Note and Mortgage, ~eclare any un~a~ orinc~pal and accrued ~nterest of tge ~eferencez ~can ~mme~ate]y due and payaDle uoon deman~ cerm~tt3ng the EPA to commence a foreclosure action to mcn~es Oursuant to the terms o~ the Mortgage Note and Security Agreement an~ ~xture F3nanc~ng Stateme6t, and w~EREAS, 3t is not presently ~eae~Ole to ccmolete ~mDrovements, and ~e Developer ~s ~es3rous o~ proceeding at and tme C~%y Council ~&e aporove~ or agree~ 5o approve sa~ ~iat the conditions (1) that the Developer enter ~nto tn~s Contract, wmlc~ Contract ~ef~nes the wor~ wn~cn ~ne ~e,e':re ~ndertaKes to complete w~t~n the ~oundar~es o~ sa~ ~'at 55 Jescr~e~ hereinafter, (2) that %ne Developer prov'~e a :cn~ other collateral Fo~ an amount amd w~tn a sure~¥ and satisfactory to the City, to secure the actual construction installation of suc~ ~mp~oYements w~n~n the per~od s~ec~f'e~ -. the C~7, amd (3) that the Developer enter ~nto all documents required Dy %~e EOA to evidence and secure Developer's ~epayment of tme EPA loan, NOW, THEREFORE, ~ne City amd 0evelocer agree as F;'~cws. Chapter of the New HOOe Clty CoOe, as amenQe~ %o cate hereoF, ar~ ~ncorporateQ herein Dy reference. 2. T~e CeveloDer ~grees to make all ori¥&te ~m~rovememt$ as shown on the ~e~ruary 7, 1991 revised s~e clan oreoare~ =/ wes~wcoa Professional Serv3ces, Zmc. a~acned ~ereto as Exm~:~ : wl~ln one year from the da~e of ~m~s agreement, exceo~ as ~'~ ~er~o~ of t~me ~s ex,ended Oy resolution of ~ne C~ty Ccunc~ '~e Developer agrees to ~erform ama comole~e any aaa~onal c;cc~ .... = com~it3ons. These imorovemen~s small ~ncl~ae ~ut not ~e :~m~a~ ;: tme following: a. Installation of comcre=e curO arounc orooer=y as s~own on s~e o~an. Installation of O~tum~ous oav3ng ama repair s=orage area as shown on =ne c. Planting of t~e following vegeta=~;m lan~scao~ng as s~own on the s~te clan: and ecs= s3de of OrcOer~y, 3' O.C. ii, 5 Amdorra Jun~oers ~o ~e olan=ea om rort~eas- spacihg 3' c.c. iii. 33 ~Wi~zer Jun~Oers =o Oe olantea on eas~ s'ue of property, s~ze 18", spacing 3' c.c. iV. 18 Techny (H~ss~on Strain) American ArOorv~tae %0 Om olanted on west s~e of orooer~y, s~ze 3~ ~n¢~ ~o=, soaring 15 feet o.c. w~m wee.: O&rrier and rock mulcm. 16 Isanti OogwooO %o Oe olante~ - ~0 s' soutneas: corner of OuilQ~g and 5 :~ sou~wes~ corner of Oull~ng, s~ze 2~ sp&¢lng ~' c.c. V1 . of Oulld~ng, s~ze 2.5' Vii. 29 Austrian Pine to be planted on wes% property line on County Kitchen property, size/root 6' B.B. 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. 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. Installation of .acceptable automatic sprinkler systems in all planted areas. Installation of outdoor trash enclosure on south side of building constructed of 6 foot block wall painted to match building. Installation of bomanite paving in front display area as shown on site plant. Construction of four painted islands in the Transport Lane area as shown on the site plan. Further, the Developer acknowledges and agrees that development of the site will comply in all respects with the terms, conditions and regulations of the New Hope City Code. These conditions incl.ude but are not limited to, compliance wit~ the following: 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. That all signage on the site fully comply with tme sign code. 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 handicapped parking spaces are provided on the west side of the building, that all parking areas be properly striped with the exception of the display area and Oody s~op/col]is~on repair storage area, and t~at employee parking Oe provided on the west sloe o= the Du~ldlng. That all drive aisles are 2a' or more That the loading and unloaC~ng areas are prcv~ec on the south side of the Oulld~ng. That on-site snow storage Oe allowed only Tn :~e southeast corner of the ProPerty and t~at ~se ~= parking spaces w~ll not ~e permitteC for snc~ storage on-site. That all sales/leasing/rental display areas, sotr indoors and out~oors, comply fully with all are~ requirements of the C~ty Code. That the construction plans for the shop and ¢o]l~sion repair storage area are approveo Dy the Building Official and ~re Chief. That no ot~er tenant w~ll be al. lowed to occuoy tne space currently being occupied by Universal Colour lease or any options to renew said lease, deve~oce- will construc~ or imorove the property w~tn showroom and display area as shown on Exh~t Further, while t~e tenant occupies the propcsec showroom and display area, developer agrees the parking display area s~own on EX~lOit A front of said area will not Oe permitted fc display Out shall Oe reserved for employee customer parking of the tenants. 3. The Develooer also agrees to construct w~thin one yea~ from the date of ~bia agreement puOli¢ improvements for storm wate~ drainage and erosion control and that it has suDmltted a Septem~e~ 12, 1990 Paving, Grading, Drainage and Erosion Control prepared Dy Westwoo~ Professional Services, Inc. in~cat~ng ~mprovements i~ hereOy agrees to construct. Said plan has ~ee~ reviewed and approved Dy t~e C~ty Engineer and Developer sma:: ~mplement t~is plan anO construct all improvements thereon, The par~ies agree t~e ~mprovements inaicated on sa~a ola~ are necessary for adequate drainage and erosion control at site, Developer further agrees to complete any improvements Ourocse of the plan ~n tme sole opinion of cmo City Engineer. Suc~ Construction small De suDject to Inspection amp approval of City. The Parties fur%met understamd amp agree tmat approval tme C~ty and ~ts Engineer does not constitute any warranty guarantee to tme Pore]oDer an~ tmat %me Pore]Doer nas relle~ on own 3uCgmen% or westwood relative to t~e adequacy of tn~s s]a~. r~e C~ty an~ ~ts Engineer nave reviewed %m~s plan solely For purpose of determining ~ts aD31ity %0 conform wltm tme C~t/ overall storm sewer plan. Upon %me completion of tme work and construction requ~reC to ce done hereunder, sale storm water drainage Improvements smal] ~ecc~e part o~ eitmer party mereto, otmer than acceptance at usage. ~. The Developer s~a11 ~ay ~or a11 costs o~ cersons Co;~ work Or furn~sm~ng skill, tools, macm~nery or materials, or ~nsurance premiums or e~u~pment or supplies and all just claims ~=~ tme same, and tme City small De unOer no oDl~ga~lon to ~ay the Developer or any subcontractor any sum w~atsoever on accoumt tnereo~, whetmer or no= the C~ty sma]] ~ave approved tme suDcontrac~ or suDcontrac~or, and tme Developer and ~ts surety small mold tme City marmless against any such claims, ama crov~ue tme City w]tm all necessary lien waivers. 5. In %me even% o~ de,au1% Dy the Developer as work to De Der~orme~ hereunder, tme City may, at tme City for any expense i-ncurred %merein Dy tme City, %ne work in ~efau]~ eno required to De done Dy tme Oeveloce~ less tman ~8 mours being given t~ereDy to tme Developer %0 remc~e mereto. Notice %0 ~e Developer small also cons~lt~te further action, no~ice %0 any con%rector or suOcon%rac%or, who%ne they are aD, roved and &cce~teQ Dy the City or not. In emergency, as determine~ Dy %me Clty Engineer, tme reau~remen~ ~o %me Pore]DOer sba]] De an~ mereDy entirety ~y %me Oeveloper, and the Oevelooer small relmOurse City For any expense so incurred Dy tme Clty in tme same manner Oeveloper ~s limited Dy s~r~ke$ and ~orce majeure, and all claims which may ar~se from %h3rd Parties, ~nc!ud~n~ comtractors or suOcon~ractors ~or damages sustained resulting ~rc~ the ~erformance or fai]ure of performance o~ %he aOove-cescr~ec work or %ne work reauired in oa~agraon 15e. 7. The Oeveloper agrees to reimOurse the City ~o~ all costs portion thereof, including court costs and reasonable eng3neer~ng and attorney's fees. 8. The Developer shall deposit with the City a sat~sfactcr/ SuDdi¥is~on Bond for the work spec3~ed ~n paragraph 3, ~e in the amount descr~Oe~ in paragraph 15f, securing the ~'~'' performance of this Development Contract. The term 8Ond as used herein shall also ~nclu~e any type of collateral agreement or security accepted Dy tme City. take action to ~raw upon the Oond to enforce %his agreement a~ter the %~me of expiration ~y which the work is %o ~e completed w~ll not waive, estoD or release any r~ghts of the City and the City can take ac%ion at any time t~ereafter to require completion of the work an~ payment for same. These provisions sma]] De apol~caD]e %0 any person who g~ves security ~or or guarantees the completion ~ this agreement. 9. The Developer unconditionally guarantees to the C~ty a'' work re~u~re~ to ~e performed Oy paragraph 3 for a oer~od of %ne year suOseauent %o accePt-ante of same Dy t~e 'City against Door mater~a], ~aulty workmanship, or any other failure of the war~, whether or no~ all or amy port,on of the SuDdiv~s3on Bon~ sna~' have Dean released by t~e City. 10. The Developer shall clear any so~l, earth o~ aeOr~s ~;~ the streets resulting from Ouild~ng on the land w~tDln the ada~t~c~ Oy ~ne Developer o~ its agents, successors or assigns, and smai' restore any gravel ~&se de=ariorated Dy m~x~ng construction cr excavation debris o~ earth, anO repair any Oamage %o O~tum~c.~s surfacing resulting from the same causes. 11. The Developer agrees that t~e City at its oot~om car ~nstall and construc~ any work or ~morovements re~u~red ~? paragraph 3 to Om made by the Developer, and ~ne Develomer agree~ to pay all costs so incurred Oy the C~ty. 12. The oar~es agree tme Oreacn of any terms of Agreement Dy the Developer small De grounds ~or denial o~ for :uil~in~ w~t~m cne ag~:~c~ ~n~l s~c~ -~eac~ ] correcte~, either Dy the C~ty or ~e ~evelo~er, as ~e ca~e ma~ ~e. t3. If any oortlon, section, sucsect~on, sentence, 0aragraon or omrase of tn~$ OevetcDment Contract ~s fcc a~,, the rema~nlng ~crt~on of tn~s Agreement. heirs, successor~ or assigns as %ne case may ~e. understand and agree that the~ Ceve]coer ~s ~esoons~e terms of this Contract for the acts cr cm'ss~cms agents an~ successors ]n Autonaus of 8oettcner, I~c. an~ ~hcmas ~. 0evelopment Contract ~s as ~o~lcws, an~ maile~ ~y the C~t/ to %n~s a~ress s~all De sufflc~ent not,ce ~ncer %n~s Contract, of a change of addrass ~s ~ven to the writing: C · 7709 ~2nQ Avenue North New NODe, MN 55427 =home: (812) 535-5707 .' The legal descr~ot'~ of t~e c-em,ses %0 ~n';~ ~-': Oeve]oDment Contract ac~l~es consists ;~ c-e~'~e~ in %ne State of H~n~esota, Cc~t~ cf ~enne~'~, %t- wit: 32~, Nennep~n County, ~nnesota" ~escr,~eC follows: Beginning a% the ~ntersect~on o~ ire ~cs- northerly line of sa~c L~t 9 and a 650. ~0 feet easterly From the wes% of Section 17, TownSm~O '18, ~ange 21 as along sa~d sout~ ]~ne and ~ts westerly extens~r d~stan% 853.30 fee% easterly f-em sa~d Section ~? as measured alon~ sa~c westerly along said most northerly l~ne ~o t~e northeast corner of Lot 7 in said "Auditor's Subdivision NumOer 324, Hennepin County, Minnesota"; thence southerly along the east l~ne o said Lot 7 to the southeast corner of Lot 7; =~ence westerly along the south line of said Lot 7 ~istance of 5,00 fee~; thence southerly paralle' with the southerly extension of t~e mast ~ne of said Lot 7 to a line drawn ~aralle] w~tn distant 611.50 feet north of t~e sou~h line of Lot 9; t~ence-easterty oarallel with sa~ line ~o its intersection w~th said Line "A"; tmemce northerly along said Line "A" to t~e actual of 0eg~nning. That ~art of Lot 9, "Auditor's Subdivision NumDer 324, Henne~n County, M~nnesota" aescr~0ed as follows: Commencing at the intersection of ~me most Northerly line of said Lot 9 an~ a l~ne hereinafter referred to as Line "A" Oelng a line drawn from a oo~n~ on the South line of said Lot 9 distant 650.80 feet Easterly from the west Quarter corner of Section 17, Townshio 118, Range 21 as extension to a point on sa~d most Northerly line Lot 9 d~stan[ 653.30 feet Easterly from the wes~ line of said Section 17 as measured along sa~d mcs~ northerly line and ~ts Westerly extension; Westerly along smtd most Northerly line a ais~ahce of 50 feet.~o the actual point of 0eginn~ng; ~ence continua westerly along said mos~ Northerly line the Northaa=% corner of Lot 7 in said "Aua~tor's Subdivision NumDer 324, Hennep~n County, Ninnamota"; thence Southerly along the East line said Lo~ 7 and along t~e Southerly extension Southerly from ~ha Southeast corner of sai~ Lot 7: t~ence Easterly paratle1 with the Eas~er~, extanmion of the South line of 'said Lot 7 distance of 40 feat; ~hence Southerly oarallet said Southerly extension of the East line of Lot a distance of 50 feet; thence Easterly paralle' wit~ said Easterly extension of the South line Lot 7 to the intersection with said Line thence Northerly along said Line "A" to intersection with sa~d Easterly extemsion of South line of Lot 7; thence westerly along Easterly extension of the South l~ne of Lot 7 to 8 the intersection with a line drawn $outhsr!y parallel with said Line "A" ?rom the actual point o? beginning; thence Northerly parallel with sa~a Line "A" to the actu&l point o? Oeginning, according to the recorded plat thereo?. and is proposed to bm known as Lot 1, Block ~, Autohaus Addition. The date o? this Oevelopmen~ Contract ~s: Requirements add~tton&l to those l~stsa ~n paragraph ~ arm as ?ollows: Developer $hall r~ze the o??~ce building commonly known as .the Animal Hospital pursuan~ to an Agreemen~ to Raze 7675 ~2na Avenue North a~tached hereto as Exhib1% B. The coe~ o? demolition and removal shall bm the sole cost o? the Developer. Also Developer anal1 oe required to comply w~th all o? the conditions o~ ~te Prel~m~nary Pla~ approval and Cond~tton&l Use Perm~ to allow ?or outdoor s&lea ~n a B-3 zoning dts~rtc~ eet&D11shed ~y C~ty Resolution Nos. 8e-23e and ~O-~4 a~tache~ hereto aa Exhibits ¢ and 0 respectively. The Id[al amoun[ o¢ the Subdivision Bond reau~rea to secure the performance o? the work reauired ~y paragraph 3 ia initially se~ at Twenty $ix Thousand Two Hundred. Eighty Dollars, ($2~,280.00), and ~s agreed ~o ~y ~he Developer, and shall bm in the ?orm of: / Cash deposited w~%h City at no ~nterest. / / Irrevocable LeCtor o? Credit ?or one year, cancellaD1e on 30 days' written not,ce ~o Ci~y thereafter. / Corporate Surety Bond. / X / Developer. more ?requen~ly than annually, the O~veloper may requee~ ~ha~ ~he City Engineer evaluate the work remaining to be done hereunaer by She Oevelooer, aha rue amount of bona may be reaucea Council action to sucU aollar amount as aeeme~ necessary for rue City by the Engineer. Oarties agree that formal action taken Dy t~e C~y Counci3 in reducing rue amount of tn'e Oona as initially se~ Uerein sUa11 constitute amoun~ and the parties waive written of tuts Oevelopment ¢on~ract as ~o sucU rea~cec bona requ~rememt. IN WITNESS WHEREOF, we have hereunto set our nan,s and seals. Its City manage~ Its 10 STATE OF H[NNESOTA ) ) ss. COUNTY OF HENNEPIN ) The fO~'®going ~ns~rumen~ was acknowleOged before me day of /7~ '/ , 199'_~_, by EDW. J. ERICKSON and 0ANIEL DONAHUE, t~e Nayor and Hanager, cesDec=ively, of ~he HoDe, a mun3c~Dal co~Dora~on of the S~aC® of H~nneso=a, on Notary~Public STATE OF N[NNESOTA ) ) SS. COUNTY OF HENNEPIN ) ~ay of /,~.'/. , 199/ , and , and , HinneaDO]~S, [nc., a coF~oFa[~on H~nneso~a, on De~al~ of s&id co~DoFa~3on. STATE OF MINNESOTA ) ) ss. COUNTY OF MENNEPIN ) The foKdgoiog insl:rument; was acknowledgecl before me tn~s Oay o~ ~nd~v~clual 1 y. , 199 / , Dy Thomas W. aoettc~e~. Notary PuD11¢ 11 I'-'~N qrE~EN t SONOI~.~41 ~ NOTARY ~'.'t:)I.*C-MINNESOT~ ~,~..v ~ENN(P'N COUNI'/ COUNCIL ~ REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA 5-11-92 Item No. By: Kirk McDonald By: 5 Management Assistant DISCUSSION REGARDING CITY-OWNED PROPERTY AT SOUTHWEST CORNER OF 42ND/NEVADA AVENUES The owner of All Star Sports will be in attendance at the May 1 lth EDA meeting, per staff's request, to discuss their intentions regarding the City-owned parcel at 7305 42nd Avenue North. As All Star has indicated in the past, they are interestsed in a future expansion onto the property, but have not determined a specific schedule or commitment. On the other hand, as you are aware, the City received a letter of intent from Valvoline Oil Change in January, 1992, to purchase the property for $75,000 (less a 7% commission). Valvoline continues to contact the City on a frequent basis in regard to the City's position on the sale/future use of the parcel. Perhaps the EDA wants to have an updated appraisal of the property completed to determine the current market value. LaSalle & Associates appraised the property in 1988 in conjunction with the 42nd Avenue project. Staff has contacted LaSalle for a cost estimate on an updated appraisal and they would provide a new appraisal for $750.00. There is not a taxable market value listed for the property in the County's tax listing, but staff has contacted the assessor and he indicated that they would place a value of $50,000 on the vacant property, as that would be comparable to the land surrounding the parcel. At the January 13, 1992, meeting, the EDA indicated that an updated appraisal to determine the current market value may be beneficial if Valvoline' s offer was close to what the EDA would-be willing to accept for the property. MOTION BY SECOND BY Review: Administration: Finance: RFA-O01 ~ ,~.~0~ Xyton Avenue Nortl~ New Hope. MinrTesota.55425 Phone.. 53 March 27, 1992 Mr. Jerry Norman c/o Ail Star Sports 7321 42nd Avenue North New Hope, MN 55427 Subject: CITY-OWNED PROPERTY AT 7305 42ND AVENUE NORTH Dear Mr. Norman: The City has taken the preliminary plans that you first developed over a year ago and formulated the enclosed concept plan depicting an expansion of your existing building onto the City-owned parcel to the east. The City Council is interest in knowing whether you are still considering an expansion. Would you please review the enclosed concept plan and contact Doug Sandstad, Building Official (531-5122), to schedule a meeting within the next several weeks, if convenient, and give us your input. I would also like to invite you to attend the April 13th Council meeting so that you can discuss the expansion possibility with the Council and staff. Thank you for your time and consideration. ~ncerely, . I-' Kirk McDonald Management Assistant/Community Development Coordinator KM/lb Encl: Concept Expansion Plan Survey cc: Dan Donahue, City Manager Doug Sandstad, Building Official P COMBINED LOTS CONCEPT EAST LOT CONC~ 'B' OIL OPTIONS" AVE. N 4J.01 Xylon Avenue North New Hope. Minnesota 55428 ~hone: 531-5!,00 FAX ~'£ fi' ~' - January 21, 1992 Mr. Robert Baldwin Baldwin Realty 4025 West Broadway Robbinsdale, MN 55422 Subject: CITY-OWNED PROPERTY AT 7305 42ND AVENUE NORTH VALVOLINE RAPID OIL CHANGE Dear Mr. Baldwin: As a result of your December 18, 1991, correspondence to City Manager Dan Donahue, regarding Valvoline Oils continued interest in the city-owned property at 7305 42nd Avenue North in New Hope, the Economic Development Authority again discussed the issue at their January 13th meeting. I have enclosed the minutes and staff reports from both the November and January meetings for your information. The EDA directed staff to formally contact All Star Sports, to inform them that Valvoline Rapid Oil is interested in acquiring the property at 7305 42nd Avenue North, and to request a response as to their intentions to develop the property. If All Star does not intend to pursue an expansion on the property, then the EDA is willing to give serious consideration to the proposal by Valvoline Rapid Oil. A copy of the correspondence from the City to Ail Star Sports is enclosed for your information. In conjunction with formally contacting All Star Sports, the EDA also requested that staff pursue- discussion with Valvoline Rapid Oil to determine what amount they- would be willing to pay to acquire the property. If the offer is in the range of the most recent appraisal, which is four years old, then the City may proceed to have the appraisal updated to determine the current fair market value. If the offer is not in the range of the previous appraisal, then the City will probably not expend the funds to have the appraisal updated. You may want to pass this information on to Valvoline Rapid Oi! and formulate a preliminary offer on the property. I would anticipate that the City will be hearing from Ail Star Sports within the next several weeks. Please contact Dan Donahue or me if you have any comments or questions regarding this issue. Sincerely, ~- Kirk McDonald Management Assistant/Community Development Coordinator Enclosure: Minutes/Staff Reports cc: Dan Donahue, City Manager Doug Sandstad, Building Official Steve Sondrall, City Attorney Valerie Leone, City Clerk Mark Segal, Valvo~s~~ For Family Living 44.01 X/on Avenue North New Hope. Minnesota 554.28 Phone. 531-5!00 FAX ~ :2 ]~:' _~' -- January 21, 1992 Mr. Jerry Norman c/o Ail Star Sports 7321 42nd Avenue North New Hope, MN 55427 Subject: CITY-OWNED PROPERTY AT 7305 42ND AVENUE NORTH Dear Mr. Norman: This letter is intended to inform you that Valvoline Rapid Oil Change, Inc. has contacted the City and is interested in pursuing the acquisition of the vacant City-owned parcel at 7305 42nd Avenue North adjacent to your property for the construction of an oil-change facility. Rapid Oil made a presentation to the New Hope Economic Development Authority on November 25th and this subject was discussed again on January 13th. I have enclosed copies of the meeting minutes and staff reports for your information. Over the past several years the City has informally discussed with you the possibility of expanding your building onto the adjacent vacant property and the City Council is still interested in that concept. However, if you do not intend to pursue an expansion on that property, then the Council is willing to give serious consideration to..the proposal by Valvoline Rapid.'Oil. The City would like to see the property developed within the next year. The City Council has directed the staff to formally contact you, explain the situation, and encourage you to respond if you have intentions to develop the property. The City can then respond in an appropriate manner to the offer from Rapid Oil. Please review the enclosed material and contact Dan Donahue, City Manager, or me regarding this matter so that the City clearly understands any future plans you may or may not have for the property. Sincerely, Kirk McDonald Management Assistant/Community Development Coordinator m/lb Enclosure: Minutes/Staff Reports cc: Dan Donahue, City Manager Doug Sandstad, Building Official Steve Sondrall, City Attorney Valerie Leone, City Clerk ~ All Star Sports ~ll~l~Styled City'~,~v//,,l~/' For Family Living al3n in ealty 4025 WEST BROADWAY, ROBBtNSDALE, MINNESOTA 55422 533-8629 January 31, 1992 Mr. Kirk McDonald City of New [{ope 4401 Xylon Ave. North New Hope, Minnesota Re: City-owned property 7305 42nd Ave. North Dear Mr. McDonald, Please find enclosed a letter of intent from Valvoline Oil Change, Inc. executed by Mark Z. Segal their real estate representative. It is our understanding that the purchase price of Seventy Five Thousand Dollars ($75,000.00) includes a comission of 7% payable to Baldwin Realty Company at the time of closing the sale. If the City of New Hope wishes to enter into a purchase agreement with Valvoline please let me know at your earliest convenience. Ve~y~ru~v V~Qurs, _ , R~ert L. Baldwin RLB/do VALVOLINE INSTANT OIL CHANGE, INC. 3041 4th M~nneapo~ Te!e~none %:i ~£1-i!z' January 28, 1992 SUBJECT: C..itv-ow,-.-~d proper{,y 7,205 42nd Av~,~-,ue North ~-'~ leSter shall ....... ~. ~,-, ~-,--,*~ ~ that - id '-}~ ..... ' - '$75 OhO Basad nn terms and conditions~,~ forth=,,~,-. our D .... ~.~ .... ~ Agreement ~' '" ' V.9. zVO ~ ' 'razo letter .,shall n.:-,+ binc! ' ~ zzne, ~,~.,~.~,,..~x~-,r~ '-'~i~,_.~ ~"" P.a~id n ~ ........ '" in An y b ~ '-- fi ~ ~-,. ' ' ~ .... ac~ ..... 9apid -'~ ~ Chan~e~ ~z'~m~nt shall be s~ ..... by an O~IlCer uz .... ~ !nc. or by any pers:~n ~iven its Po~er of A%torney. / ,,/ Sin(serely~ / -. / / /' ~ / / Mark ~~az =' ~ Es Representative ~.eaz _tate A Subsidiary of Ashland Ot Inc Approved EDA Minutes Meeting #1 CITY OF NEW HOPE 4401Xylon Avenue North Hennepin County, Minnesota 55428 January 13, 1992 CALL TO ORDER ROLL CALL APPROVE MINUTES CITY-OWNED PROPERTY AT 7305 42ND AVE. #. Item 4 President Erickson called the meeting of the Economic Development Authority to order at 7:26 p.m. Present: Erickson, L'Herault, Otten, Enck, Williamson Motion was made by Commissioner Enck, seconded by Commissioner L'Herault, to approve the EDA minutes of December 23, 1991. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Discussion Regarding City-Owned Property at 7305 42nd Avenue North. Mr. Donahue reported that the City has received an "offer to negotiate" from Valvoline Rapid Oil, Inc. for the property at 7305 42nd Avenue North. He stated the property is located adjacent to All Star Sports. He stated staff is requesting direction from the EDA. President Erickson suggested sending a formal letter to All Star Sports explaining the situation at this particular, time and encouraging them to respond if they are plann}ng on doing something to the property so that the City may respond to the current offer from Rapid Oil. Commissioner L'Herault conveyed the need for a new appraisal on the property. He also felt All Star Sports should be made aware that the City is seriously considering Rapid Oil Inc.'s offer. Commissioner Enck commented that he believes "informal" discussions with All Star Sports should be sufficient incentive for the owner to act on the property if he has any interest in the property. Commissioner Enck agreed with President Erickson's suggestion to formally correspond to All Star Sports. He stated the dialogue should also be opened with the petitioner for the purchase to determine whether he is interested in purchasing the property for an amount near the last appraisal. He stated Rapid Oil may be wanting to purchase it for an amount totally unacceptable to the EDA New Hope EDA Page I January 13, 1992 and therefore it would not be necessary expend monies in obtaining a new'appraisal. The EDA briefly discussed the project timetable. Mr. Donahue stated it could probably be developed sometime this summer. He commented on the easement across the property which may complicate the issue. President Erickson stated he felt it should be left up to staff as to when an appraisal should be obtained. He noted it will probably become necessary at some point in time. Mr. Donahue stated he will inquire of Rapid Oil's proposed offer. He asked the EDA whether it would be necessary to come back for authorization of an appraisal if staff feels the offer is not in line. President Erickson noted that the comprehensive plan adopted for ¢2nd Avenue may have to be amended if this type of business is allowed. Commissioner Williamson asked for a brief overview of the proposal submitted by Rapid Oil, Inc. Mr. Donahue stated Valvoline Rapid Oil Change, Inc. would like to build a Rapid Oil Change facility which primarily handles oil changes, lube changes, cooling systems, brake fluids, and other items of that nature. He stated there would be no gasoline or mechanical work involved; it would strictly be the "Rapid Oil Change" operation. He stated the facility would be similar to the one on Hwy. 81~ and Bass Lake Road located in Crystal. Commissioner Williamson felt it will be difficult to negotiate a fair purchase price utilizing a four-year old appraisal. Commissioner Otten asked whether further studies should be undertaken as to the options for uses on that piece of property. Mr. Donahue stated a full-scale marketing study could be obtained, but he felt it would be counterproductive given the studies which have been done to date. He stated the original comprehensive plan identified commercial use as a first choice as opposed to an automobile-oriented use. He stated there has not been much interest in the past several years. He noted the property is small in size (a 1/2 acre). President Erickson informed the EDA that he has suggested New Hope EDA Page 2 January 13, 1992 to Colour Lab that he work with the owner of All Star Sports and consider the possibility of having All Star Sports build an addition on their building and allow Colour Lab to lease from All Star Sports. He noted Colour Lab will eventually being moving out of the Autohaus building. He stated he believes that would be an ideal situation. Mr. Donahue stated he has discussed that option and it was felt to be unworkable. Mr. Donahue stated he will write a letter to All Star Sports indicating that Valvoline Rapid Oil Change, Inc. has contacted the City and is interested in acquiring the vacant city-owned parcel at 7305 42nd Avenue North. He indicated that he will ask All Star Sports whether they still have intentions to expand their building onto the adjacent vacant property; and if not, the EDA is willing to give serious consideration to the proposal by Valvoline Rapid Oil. He will convey that the EDA wishes to see the property developed within the next year. Mr. Donahue stated staff will begin discussions with Rapid Oil to inquire regarding their offer. He indicated he will wait for Rapid Oil's offer to determine the necessity of a new appraisal. Commissioner Enck noted if the proposal is out of line he feels an appraisal will not be necessary as the EDA can take that to mean Rapid Oil is only trying to get .what appears to have been a distressed piece of property for a low price. He commented that if the offer is close to what the EDA would be willing to sell the property for, then an appraisal would be beneficial to determine the current market value~ He indicated the EDA could provide authorization at this time for staff to obtain the appraisal based on whether Rapid Oil makes a reasonable offer. President Erickson commented that the land is not a distressed piece of property. Commissioner Enck noted that Rapid Oil may believe the property is distressed and that the City is anxious to sell it. He stated it would not be cost effective to pay for an appraisal now and then have to do so again in a year or two when another offer may arise. President Erickson directed staff to begin an aggressive marketing program in the spring for property on the north side of 42nd Avenue to see if there is any interest. New Hope EDA Page 3 January 13, lg92 AD~OURN#ENT Mr. Donahue reported that he has met with PRISM since their request to the EDA regarding the vacant city-owned property (north side of 42nd Avenue). He indicated they are continuing their efforts and their latest approach was to contact a number of non-profit organizations to explore the construction of a joint facility. He commented that if they did build at that site it is the City Attorney's opinion that they would probably be required to pay property tax. Mayor Erickson noted that PRISM has requested that the City donate very valuable property. Mr. Donahue stated the City paid half a million dollars for the mentioned parcels. Mayor Erickson stated he could not support asking the taxpayers to donate half a million dollars to PRISM unless a worthwhile program could be developed which would benefit the entire City. Commissioner Enck suggested that marketing also be conducted for the Ardell property. Motion made by Commissioner L'Herault, seconded by Commissioner Otten, to adjourn the EDA meeting as there was no further business to come before the Council. All present voted in favor. The New Hope EDA adjourned at 7:37 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 4 January 13, lg92 1.4 11.4, 8-4 AVE AVE I'n't )63 ¢i'r'f OF ~ ~ LOT 8URVIY8 C NdPANY, INC ~. I. NO.. 0- O~NOTE$ IgOr4 TIUCT S (i,l~m~im Cmmty Auditor) The north IZS ~ee~ ~ Lots $ md 4, BImck 6, Rec~ord Par~ Arm ~n ~ street eloimmt · 12S SQ. Ft. Arae ~u t~ cmltr~ctim eement· t,~ Sq. Ft. Arm ~n mt utility .ummt - ~bo S4. Ft. N~.e: ~e~cl~ aL[y, ~0 il*eno ~ beat set to eotlbl~s# prolmrty Zzaes. ~P~AISAL ~EP0~T City of ~sw Hope 7305 ~2nd Ave. New Hope, Minnesota Rivervay Company PURPOSE AND DATE OF APPRAISAL The C£cy of New Hope is considering improving the 42nd Avenue Notch coz~idor, also known as C0uncy Rd. 9 or Rockford Rd. This project involves upgrading various intersections, widenin$ 42nd Ave. No. in certain areas and ~imi~ing access from certain properties The subject property is parc of the street widening ~hac will be considered within chis improvement program. The put-pose of chis summary appraisal is co estimate the fair marker value of the property in order to establish the basis fo~ compensation if ohm property is acquired. A complete before and after analysis has hOC been undertaken because of the relative insignificance of the caking. This summar~ or scrip appraisal reflects only the valuaof the parc oaken. The subject property was inspected on Hay 30, 19BB,' and a~L valuation conclusions revolve around chac point in came. HA~XET VALU~ *- The highest price in terms of money which a properc7 will bring in a competitive and open marker under al1 conditions requisice to a fair sale, che buyer and seller, each accin$ prudencly, knowledgeably and assuming ~e price is hoc affected by undue stimulus. Implicit in chis definition is the consummation of a sale as of a specified dace and the passing of cic~e from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated. 2. both parries are well informed or ve~l advised, and each accin$ in vhac he considers hie own best incereet~ 3. a reasonable rime is allowed for exposure in the open marker. ~P~AI.~AL P~PO~T E£ver~a7 PURPOSE AND DATE OF APPRAISAL payment ia ~ade in cash or ica equivalent. $. financing, if any, is on ceres generally available in the co~tmicy ac the specified dace and typical for che property c21~e in Lea Locale. 6. the p~ice ~ep~eaencs a noml consideration ~o~ the p~oper~7 sold ~nc~ed ~n oho c~ansacc~on. PROPERTY IDENTIFICATION LEGAL DESCRIPTION: Notch 12S feec of Lees 3 and ~, Block 6, ~ockfork Park PROPERTY IDENTIFICATION NUMBER: 17-118-21-24-006L ASSESSOI'S NARKZT VALU~ ESTINATE: Land $ $2. $00 013.390,96 IncLudes special aeeeeeuenc payuenc of: $105.83 RA~sLnin$ hiance Special Aeaeesuence: $ 9~.10 Ap~?~A_!SAL ~EPOXT LOCATION AND NEIGHBORHOOD The subject p=ope=c7 is located in the ¢£ty of New Hope, a well developed second-=ins subu=b no=chwesc of Minneapolis. The c£t7 bas g=own f=om a predominancl7 ru=al commun£c7 of the ea=17 1950's ~o p=esenc population of approximacel7 23,000. New Hope is a community chac is cone£de=ed to be app=ox£mateLy 90 pe=cenc developed. Ic has adopted a well-defined land use p~an =ha: has Lef= po==ions of the land in g=een, open spaces as well as =ecreacional areas. The Hecropol~tan ¢ounc£1 esc~aaces the ave=age mean value o~ sinsle famil~ homes in the area co be app=oz£ma=ely The future of New Hope can be ac=rib,aced to £cs location, Jus= ~0 minutes fro~ downcow~ Hinneepolis. Its p=oximicy to downcown Minneapolis will con=inue co be its scrongesc assec, as much population works in dmmcownHinneapolis and lives in the The cicT has · well planned street system. ~2nd Avenue a ~aJor traffic a==ezT zunnin$ ease and west which p=ovides access che ~Jor interstate e2scem of the Twin ¢1c2 metropolitan aces, Ed. 18 o~ the wes= and T. H. 100/~69 on the The sub]eec prope==y is located in the southwest cot'ne= of ~2nd Ave. N~. and Nevada Ave. ~2nd Ave. No. ~s a fou= lane street l~tced access t-mmLn$ ease and west. Nevada Ave. No. is · local collector street runninS notch and south. &~I~ATSAL ~EPORT ~£ve~way LOCATION AND NEIGHBORHOOD The development around the subject property ~s ~ixed commercial, To the east° is a sas station with single sco=~ recall buildings beyond. To the weet La an interaiz of office bu~ldings and single, scot7 recall buildings. To the notch, across ~Ynd Ave. No, are vacant parcels with multi-family residential beyond. The site £s level ac street grade and gradually slopes downwa=d co the southeast. It La served with all utilities. V~sibilit2 s~te is good and there La noch~n$ co ~ndLcace chat the sloe bas adverse or unstable soi~ cond~tions, frou a visual observacio~. The right of way for ~2 Ave. No. £s along the northern prope~7 line, a distance of approzi~ce~7 ~25 ~eec. ~e s~ee~ easement" consists of an area approz~cely ~ ~ by ~25 ~c. and the eas~en~ a~roz~e~y 3 ~ by ~2~ ~, ~e ~iSb~. of vay v~ch a c~b ~d blaek~op. ~e balance of the s~ce ~s vacant. ~e~e ~s ~e access fr~ 42nd A~. which w~ll be c~ooed. Access co ~he s~Ce rill be ~r~ Ne~ Ave,, sloss the easceF~y p~ope~cy line. ~£ve~ay LAND VALUE (CONT'D} ~and salsa 1 co & represent salsa in reasonable proximity co the subject propert2. These tense in price f~om $2.90 $6.34 per square foot. Sale ~ ia across the so,eec from the subject. I~ Is a coz~ter location. A fast food chain purchased the site to reuse It for a ~escauranc. Sales ~ and ~2 are about ~o ~iles ~est of subject .and ~ere purchased for ~stail auto se~v~cs use. The subject proper~T ~s zoned B-3, auto oriented business. Zt receives the counercia~ influences from the surroundinS business properties, particular~ly to the east. Because of e~osure on 42nd Ave. and its cermet location, i~ is felt the propers7 vould re£lect a value covard the upper end of tense of the coulMrabLe sales. A~er takins Lnto cons~deration the pattern of land sales within chis area and re¢ora~z~n$ the various becveeu the location of these properties and the subject propez~7, Lt La ~y opinion that the value of the Land ~or the s~b]e~ propert7 ~e $5.00 per square foot.