060892 EDAOFFICIAL FILE COPY
CITY OF NEW HOPE
EDA AGENDA
EDA Regular Meeting #8
Agenda #g
President Edward J. Erickson
Commissioner W. Peter Enck
Commissioner Gary L'Herault
Commissioner Gerald Otten
Commissioner Marky Williamson
June 8, 1992
2.
3.
4.
Call to Order
Roll Call
Approval of Minutes of May 26, 1992
Resolution Approving Addendum to City of New Hope Development
Contract with Autohaus of Minneapolis, Inc. (#467)
Discussion Regarding Cit~-Owned Property at Southwest Corner of
42nd/Nevada Avenues (#492)
Resolution Authorizing and Calling for a Closed Meeting of the New
Hope Economic Development Authority
Adjournment
Approved EDA Minutes
Meeting #7
CITY OF NEW HOPE
4401Xylon Avenue North
Hennepin County, Minnesota 55428
May 26, 1992
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
AUTOHAUS
PROgECT #467
Item 4
President Erickson called the meeting of the Economic
Development Authority to order at 8:46 p.m.
Present: Erickson, L'Herault, Otten, Enck
Absent: Williamson
Motion was made by Commissioner Enck, seconded by
Commissioner Otten, to approve the EDA minutes of May 11,
1992. All present voted in favor. Motion carried.
President Erickson introduced for discussion Item 4,
Resolution Approving Addendum to City of New Hope
Development Contract with Autohaus of Minneapolis, Inc.
(#467).
Mr. Dan Donahue, City Manager, explained certain items
outlined in the development contract with Autohaus were to
be completed by April 4, 1992. Autohaus has requested an
extension and is proposing to complete all site and
building improvements north of the south line of the
building by October 31, 1992, and to complete the
improvements on the rear portion of the property by
October 31, 1994.
Mr. Donah'ue stated Autohaus has indicated economic
conditions have caused the delay for the improvements. He
also noted Universal Color Lab has a 3-year lease
remaining and some design amenities will be difficult to
occur with the lessee on the property. Mr. Donahue
suggested letting the lease agreement run its course and
structure final approvals based upon the absence of Color
Lab.
Mr. Kirk McDonald, Management Assistant/Community
Development Coordinator, indicated the curbing from the
most southerly wall of the building northward to the
property line will be completed by October 31, 1992. The
remainder of the curbing will be installed by October 31,
1994. He noted that Autohaus had indicated they did not
desire to complete the striping, repaving, and final
curbing at the rear of the building until after the storm
sewer is installed.
Improvements to the building are also proposed which were
not covered in the development contract, i.e. building
painting, installation of canopies, etc.
New Hope EDA
Page I
May 26, 1992
Commissioner L'Herault inquired of the consequences if
Autohaus does not fulfill the conditions by deadlines.
Mr. Steve Sondrall, City Attorney, stated the City holds
a bond for $26,000 which covers only the public
improvements relating to the storm sewer and drainage in
the rear of the lot. He stated if Autoha~s fails to meet
the development contract improvements they would be in
breach of their mortgage and the City has the right to
foreclose on their mortgage.
Commissioner L'Herault expressed doubts regarding whether
the new deadlines will be met unless the EDA conveys its
intentions to take action if Autohaus does not meet the
specified conditions.
President Erickson commented that he believes Autohaus is
just as anxious as the City is to make the site
improvements.
Commissioner L'Herault asked when the canopies would be
installed.
Mr. Tom Oestrich, representing Autohaus, stated the
canopies as well as new signage are in the process of
being made but will not be placed until after Color Lab
vacates the property.
He emphasized that Autohaus is trying to obtain one
company to handle all the improvements (landscaping,
sprinklers, paving, striping, concrete, and curbing}.
A lengthy discussion ensued regarding the substitution of
concrete and bituminous for the bomanite paving.
Commissioner Enck asked of the difference between the
materials (appearance, longevity, and cost). He recalled
that Mr. Boettcher has previously stressed the aesthetics
of bomanite.
Mr. Mark Hanson, City Engineer, explained that bomanite is
actually concrete with a color added to it. Then it is
stamped to create a brick effect. He stated it is a
sophisticated construction and is more expensive than
bituminous or concrete.
Commissioner Enck questioned bomanite's resistance to oil
and fuel spills.
Mr. Hanson stated oil and gas probably have the same
affect on bomanite as it would to concrete or asphalt.
Concrete may be more resistant than asphalt but concrete
would hold up better than asphalt.
President Erickson pointed out that oil leakage on
concrete would be more noticeable than it would on an
New Hope EDA
Page 2
May 26, 1992
asphalt surface.
Commissioner Enck stated originally the area was to tie in
with the overall scheme of the 42nd Avenue improvements,
and the change would allow it to be another ordinary
parking lot. He indicated he would prefer holding
Autohaus to the original agreement by requiring the
bomanite surface but allowing an extension rather than
allowing a downgrade.
Mr. Oestrich reported that bomanite is $30,000 higher than
blacktop and in order to meet the improvement deadline
they are planning on paving with a heavy-duty blacktop
fabric. He noted in the future, after Color Lab vacates,
they may replace the blacktop with bomanite.
Commissioner Enck pointed out that "sometime n the future"
is not a commitment.
President Erickson commented that the presence of Color
Lab makes the development difficult.
Mr. Oestrich indicated that Color Lab is trying to
relocate.
Commissioner L'Herault reported when Autohaus entered the
original agreement, it was known that Color Lab may extend
the lease and yet the bomanite surface was one of the
specified improvements.
Mr. Hanson interjected that if the EDA is concerned
regarding the bomanite being relinquished, perhaps a
trade-off-requiring greater green area and shrubbery could
be reachedto offset the blacktop. He suggested a review
of the site plan.
Mr. Donahue informed the EDA that a decision does not have
to be made tonight and that the item may be tabled.
Mr. Sondrall pointed out that agreement must also be
reached regarding the seeding completion date to provide
for erosion control. He reported that summer seeding
should be completed by June 15th.
Mr. Oestrich confirmed that they would have no problem
meeting the June 15th date for seeding.
Commissioner Enck discussed the southern portion of the
work proposed to be completed by October of 1994. He
recommended placing a deadline of October of 1993 so that
Autohaus does not wait until October of 1994 then request
another extension.
Mr. Oestrich indicated they are trying to be realistic
with the deadlines so that further extensions are not
necessary.
New Hope EDA
Page 3
May 26, 1992
NOTION
NEW HOPE TERRACE
Item 5
ADJOURNHENT
President Erickson conveyed that he personally would agree
to additional shrubs in substitution of bomanite.
Commissioner Enck pointed out that additional shrubs will
require sacrificing vehicle parking space. He stressed
that the whole scheme was to make it an attractive
facility and vast parking area was allowed in trade for
some amenities. He stated he would agree to the blacktop
versus the bomanite if Autohaus will commit to a definite
time frame. He suggested extending the bomanite
requirement no later than 6 months after expiration of
Color Lab's lease.
Staff was directed to meet with Autohaus to discuss the
parking lot surface and to discuss the likelihood of
completion of the rear property by October 1994 deadline.
Motion was made by Commissioner Otten, seconded by
Commissioner L'Herault, to table until June 8, 1992, the
request by Autohaus for an extension on their development
contract improvements. All present voted in favor.
Motion carried.
Mayor Erickson announced that Item 5, Consideration of
Amendment to Agreement Between City of New Hope and New
Hope Terrace, has been removed from the agenda for future
consideration.
Mr. Donahue commented that this item is unrelated to the
recent request by New Hope Terrace to ammend the
assessment agreement.
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
9:15 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA
Page 4
May 26, 1992
REQUEST FOR ACTION
originating Department Approved for Agenda Agenda Section
City Mana§er EDA
;<~-8-92 Item No.
By: Kirk McDonald By: ~t// 4
Management Assistant
/
RESOLUTION APPROVING ..A/DDENDUM TO CITY OF NEW HOPE
DEVELOPMENT CONTRACT WITH AUTOHAUS OF MINNEAPOLIS, INC.
The City Attorney has made revisions to the Addendum to City of New Hope Development
Contract with Autohaus to address the concerns that were raised at the May 26th EDA
meeting. The enclosed revised Addendum contains three (3) revisions:
1. All references to 1994 have been changed to 1993,
2. Paragraph 3.H. has been amended to require the installation of bomanite
paving in the front display area within six (6) months of Universal Color Lab's
vacation of the property or termination of their lease, whichever occurs
earlier,
3. Paragraph 3.J. has been amended to require seeding to control erosion by
June 15, 1992.
The revised Addendum has been forwarded to Autohaus for review and comment.
The enclosed resolution approves the revised Addendum and staff recommends approval
of the resolution.
/ /-
Review: Adrntnistratlon: Finance:
RFA-O01 ~
RESOLUTION NO. 92-
RESOLUTION APPROVING ADDENDUM TO
CITY OF NEW HOPE DEVELOPMENT CONTRACT
WITH AUTOHAUS OF MINNEAPOLIS, INC.
WHEREAS, by Agreement dated April 4, 1991, the City of New
Hope (hereafter City) entered into a Development Contract with
Autohaus of Minneapolis, Inc. (hereafter Autohaus) and Thomas W.
Boettcher, individually (hereafter Boettcher), and
WHEREAS, said Development Contract called for completion of
certain improvements to the property by April 4, 1992, and
WHEREAS, said improvements to the property were not completed,
and
WHEREAS, the City wishes to enter into an Agreement with
Autohaus and Boettcher to extend the time for certain of the
improvements on the property, as more ful]y set out in the Addendum
to City of New Hope Development Contract attached hereto as Exhibit
A and incorporated by reference.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of New Hope as follows:
1. That the Addendum to City of New Hope Development
Contract attached hereto as Exhibit A is approved in its entirety,
and the Mayor and Manager are authorized to sign said Addendum on
behalf of the City.
Adopted by the Council this
day of , 1992.
Edw. d. Erickson, Mayor
At t est:
Valerie Leone, City Clerk
CORRICK & SONDRAI,L
A PARTNE.qSHIP OF PROFE~ONAL COIAP~RATIONS
Eclinbtu'gh ExecuUve Office Plaza
8525 E~llnbrook Crossing
Suite #203
BrookJyn P~k, Mtnnesota 55443
TELEPHONE (612) 42S-5671
[:AX (612) 425-58~7
LAVONNE E. KESKE
SHARON 0, DERBY
June 2, 1992
Mr. Kirk McDonald
Management Assistant
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE:
Addendum to Autohaus Development Contract
Our File No. 99.15025
Dear Kirk:
Please find enclosed a revised Aadendum :o City of New Hooe
Development Contract with Autohaus that we discussed in our ~une
1st, 1992 telephone conversation.
Three changes were made to the contract. First, ali references To
1994 have been changed to 1993. Second, paragraph 3.h.) has been
amended to require the installation of bomanite paving in the front
display area within six months of Universal Color Lab's vacation of
the property or termination of their lease, whichever occurs
earlier. Lastly, paragraph 3.j.) has been amended to require
seeaing to control erosion by June 15th, 1992.
I believe these changes respond to all of the concerns that the
Council brought up at the May 26th meeting. Please contact me if
you have any comments or require any further changes.
Very<.~_u.1 y yours,
Steven A. Sondrall
slt
Enclosure
cc: Daniel J. Donahue
ADDENDUM TO CZTY OF NEW HOPE
DEVELOPMENT CONTRACT
Parties. The parties to this Addendum are the City of New
Hope (hereafter City), Autohaus of Minneapolis, Inc.
(hereafter Autohaus) and Thomas W. Boettcher, individually
(hereafter Boettcher).
Puroose. This Addendum shall modify the April 4, 1991
Development Contract entered into by the parties. Autohaus
and Boettcher acknowledge and agree that they are in breac~ of
the performance conditions of said contract and tn
consideration for the City's agreement not to immediately
pursue its remedies under the terms of the April 4, 1991
contract Boettcher and Autohaus have agreed to enter into this
Addendum.
Unperformed Conditions. Specifically, Autohaus and Boettcher
acknowledge and agree that they have failed to perform all the
requirements of paragraphs 2.A) through I) and 3 of the
Development Contract. With respect to the work required by
these provisions the parties hereto agree as follows:
a.)
The installation of concrete curb from the most southerly
wall of the building northward to the property line shall
be completed by October 31, 1992. The remainder of the
curbing as shown on the site plan shall be installed by
October 31, 1993.' All curbing shall be of a surmountable
type as approved by the City. Autohaus and Boettcher
shall submit a diagram of said curbing for approval to
the City prior to installation.
b.)
Installation of bituminous paving in the body shop and
repair storage area shall be completed by October 31,
lgg3.
c.)
All plantings shown on the site plan north of the
buildings most southerly wall shall be installed by
October 31, 1992. All other plantings shown on the site
plan shall be installed by October 31, 1993.
d.)
The six-foot opaque security fence around the perimeter
of the body shop and collision repair storage area shall
be installed by October 31, 1993. The existing fencing
shall remain in place until the new security fence is
installed.
h.)
i.)
j.)
The installation of lighting shown on the site plan shall
be completed by October 31, 1992. However, the parties
agree that the existing lighting for the cotl,ision repair
area as of the date of this Addendum is adequate and no
further lighting is required notwithstanding the lighting
required by the site plan.
All planted areas completed in 1992 will be sprinkled by
October 31, 1992. All planted areas completed :n 1993
will be sprinkled by October 31, 1993.
The installation of the outdoor trash enclosures will be
completed by October 31, 1993.
The front display area will be completed by October 31,
1993. However, the parties agree that the installation
of bomanite paving will occur not later than six months
after termination of Universal Color Lab's existing lease
or vacation of the property by Universal Color Lab,
whichever occurs earlier. The parties further agree that
during the interim period the front display area can be
paved with concrete and bituminous·
The islands in the transport lane area will be installed
by October 31, 1993.
The public improvements for storm water drainage and
erosion control required by paragraph 3 of the
Development Cont-ract must be completed in conjunction
with the construction of the bituminous paving in the
body shop and repair storage area. Autohaus and
Boettcher acknowledge and agree said bituminous paving
will not be allowed unless the drainage and erosion
control work is completed simultaneously with the paving
work all to be completed no later than October 31, 1993.
However, Autohaus and Boettcher will complete seeding of
this area by June 15, 1992 to minimize the erosion until
the drainage improvements are constructed.
Effect of Addendum. The parties agree that this Addendum
shall not change the other provisions of the April 4, 1991
Development Contract which shall remain in full force and
effect. This Addendum shall be construed as supplemental to
and not inconsistent with the Development Contract. The
parties further agree that a breach of this Addendum shall
also constitute a breach of the April 4, 1991 Mortgage,
Security Agreement and Fixture Financing Statement given by
Boettcher to secure the April 4, 1991 Mortgage Note executed
2
by Boettcher. Autohaus further agrees that assignment of the
Certificate of Deoosit given as financial security to insure
performance of the Development Contract shall also extend to
the herein Addendum.
Dated:
CITY OF NEW HOPE
By
Its Mayor
Dated:
By
Its City Manager
Dated:
AUTOHAUS OF MINNEAPOLIS, INC.
By
Its President
Dated:
Thomas W. Boettcher, individually
STATE OF MINNESOTA )
COUNTY OF HENNEPIN )
The foregoing was acknowledged before me this day of
, 1992, by Edw. J. Erickson and Daniel J.
Donahue, the Mayor and City Manager, respectively, of the City of
New Hope, a Minnesota municipal corporation, on behalf of said
municipal corporation.
Notary Public
3
STATE OF MINNESOTA )
) ss,
COUNTY OF HENNEPIN )
The foregoing was acknowledged before me this
, 1992, by
President of Autohaus of Minneapo]is, Inc.,
corporation, on behalf of said corporation.
day of
, the
a Minnesota
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing was acknowledged before me this day of
, 1992, by Thomas W. 8oettcher, individually.
Notary Public
LF.,A$ING · $,4I, F,5 / FOREIGN AND DOMESTIC A [,'TOMOBILZ$
Audi
March 18, 1992
FORD
NISSAN
HONDA
City ,.~f New Hooe
4-~0i Xylon Ave. N.
New HoOe, MN 554?7
SuOject: DeveloomenC Contra,:= [mOrovemen=s
Dear Dan an= Kirk:
CHRYSLER
BMW
MERCEDE$
The c:ate of Aoril 4, l'~gi was =~e ~a~e of final a~oroval
our exoansion olans. As of ~c,~ay, Marc~ 18, 1992,
al~oug~ ~elays an~ economic ~imes have cause~ an
of one year to ~e necessary.
We ~ave demolished =~e old Animal
imQrove~ ~e 42nd Avenue ao~earance. Delays in ~o :::.
doing a Qrac~ icl .fire and an ear ly snow cover ~ave al s:
,:,:,nCri0uCe~ Co our need for an extension.
VOLVO
ACURA
TOYOTA
Auto~aus fully in~ends to finis~ these
lmOrovemen~s in a ~imely manner ¢onsl~lFi~g ,our .:aoaoil
to Qay as we go for lmOrovemen~s. Au~o~aus ~as .:ons~ru.:~i :-
money se~ aside for ~o area's imorovemen~ ~u~ ~e ::
some Auto, dUI will ~o i~self. The hex= s=age is ~o ca.~
a~ress ennancing =ne view from 4~n~ Avenue.
POR$CHE on March 23rd and exr:lain ,=ur
JAGUAR -' ' ~
for an IXtl~i,i,n ' '
, 7709 4,end Avenue .~orzlJ * Min,',eapolis. MN 5542? * (612) 555.5;'07
Rar¢~ 9, ~992
Mr. Thomas 9eeC=char, Presiden=
Au=ohaus of Minneapolis, Inc.
??09 ¢2nd Avenue Nor=A
New ~ope, M~ 55427
DEVELOPMENT CONTRACT IMPROV~ENTS
On April 4, 1991, Au=ohaus, Inc. and =he Ci=y of New Hope execu=e:
a Developmen= Con=fac= regarding specific improvemen=s =o
=o =he Au=oAaus proper=y, i.e. ins=alia=ion of con=rare curB,
soaping improvemen=e, paving and ligh=ing improveman=s,
=ion of storm water drainage improvemen=s, and =he
removal of =he Animal Hospi=al building. ~aragrapn 2, page
priva=e improvemen=s as shown on Feb=usry ?, 1991 revised
plan...wi=Ain one year from =he dare of =his agreemen=, ex=ap=
=his period of rime is lx~cended by resolu=ion of =he Ci=y
April 4, 1992, will mark =Al end of =he one year period and
car=aim improvemen=e have been comple=ad, ochers ~ave
improvemen=e by =~e Ap=il 4, ~992, deadline, you s~ould
ex=ension of rime from =~e ¢i=y Council prior =o =he
dace. The Cl=y Council heX= mee=s on Marc~ 2~rd and
mee=ing in April is on ~.~e 13=h, so I would s=ronqly
if you pl,n on r~ee=ing ,n ex=ension of rime on =~e ma~inq
imp=ovemen=s, =~a= you do so a= =~e Marc~ 23=d Council
~ would recommend =ha= you follow =Aa same procedure =ha= =he ~--
Code ou=lines for zoning procedure ex=ens~ons. The code
=ha= "pe=£=£on for ex=ans£on shall be made in wri=ing and
The peri=ion shall include a sca=amen= of fa=rs explaining --~
circums=ancee neceisi=a=ing =he ex=enlion". If you are going --
su~mi= a peri=ion reques=ing an ex=ension and wan= =o ~ave
considered a= =he March 23rd Council mee=ing, please su~mi= --~
peri=ion =o =he Ci=y by March lS=A so ~na~ youx re=pAss= can
included on =Am agenda.
F'amit, y Styled City ,.~,, , . ,,.,
-2-
$incerelT,
Kirk McDonald
Managemen= Assis=an=/Communi=y Developmen= Coordina=o=
~'n¢ 1:
Excerp=/Ci=y Code
Davelopmen= Agreemen=
CC:
Dan DonaAue, Ci=y Manager
S=ave Sondrall,
Mar~ Hanson, Ci=y Engineer
Doug Sands=ad, Building Official
Valerie Leone, Ci=y Cler~
Thomas Oes=re£¢A, Au=oAaus
P=oJec= File
S)BT.~OO.OO loam ev~:encl~ :7 a wort;a~e ~ote:atec ~/,/~. /%%/
:e¢~are a~ ~a~ Or~¢~mal an~ accrue~ '~terest 0~ t-e
~orovements, ano ~ne Oevelooer ~s :es~rous of =rocee=~ at
one yea~ f~om :~e ~a~e of ~n~s a~reeme~, excec= as --.~
., .C
&~ ~tO&l~ s~orage a~ea aa shown on :~e s~:e
3' O.C.
ii.
soac~g 3' o.:.
of ~rooer~y, $1zl 1~", so&el&1 3' o.c.
38 ~flc~ 0o~. $oac~ng 15 fee~ o.c. ~3:~
V1.
of ou~la~ng, s~:I 2.5'.
v~i. 29 Austrian ~lne to
~rop®rty t~ne on Count~ K~cnen ~roper~z,
size/root 6'
Installation of slx Foot opaque security fence
(chain link wlt~ 0ar~ed wire) arouno oerlmeter ~f
cody shoo and collision repair storage area as
shown on site plan.
Installation of white sodium vapor wall l~gmts arc
Freestanding overnead lights as shown on %ne s~%e
01an. The overhead light ~oles shall mat:r
existing City street ligmtlng.
Installation of .accepta01e automatic
systems in all planted areas.
Installation of outdoor trash emclosure on south
s~a of Ouilding constructed of 5 foot Olock wall
0dinted tO mato~ ~ullding.
Installation of ~omanite paving in Front display
area am shown on s~te 01ant.
Cone%ruction of four paintad islands in
Tranapor~ Lane area as shown on the site ~lan.
the site will comply in all respects with the terms, conditions arc
regulations of the Naw Hope City Code. Thesa conditions tnclu~e
Out are not limited to, compliance with the following:
All set~ack provisions of the zoning code and more
all ~arking an~ storage areas and driveways from
Tha~ &ll $ignage on t~e site fully comply with the
sign code.
Tha~ all on-site parking requirements of
co~e are fully complied w~t~ and more specFicall7,
t~&~ & minimum of 81 parking spaces are provlOeo.
t~a: 3 handicapped parking stalls are provided an
t~e eaI~ side of the 0uilding and 2
parking=spaces are provided on the west side of the
Ouilding, that all Oarking areas Om orooer~/
striped with the exception of tho display area and
southeast cor~er o* ~e :~:oer~¥ ~ t~a~ .se
all sales/least,g/rental
~m~oors an4
ay :ne au~l~lng O~c~al an~ ~re Cn~e~.
s~ace cNrren~l¥ ~elng occNo~e~ ~ universal
Lae~rat~riem an~ tna~ usam the exo~rat~om of '-s
lille Or &fly oD:iOnS tO renew Sill lease, ~evelc:e-
w~ll coflltru¢: or ~morove the Orooerty
S~owroQm Inl lilllly aria al shown on
front of sai~ area will not
12, 1390 Paving, aral3ng, Ora~nage an~ Erosion Control
are nlceSlary for aaeauate ~rainage Ina erosion control ac
Site, Oevelo~Ir ~urc~er agrlel tO osmolite any ~morovements
4,
~orK or F~r~Snl~g sK~ll, ~O01S, machinery Or maCer~&ls, or
=metier. w~eC~lr or nec ~ne C~Cy small ~lve a~rovea
wor~ :o =e merformea nereunaer. :me ¢~Cy may,
=erform ~e sa~a work ama. one Oevelomer small ~romoCly re,mmv-==, -_
Oeve~oaer ~s f~rsC given written noc~ce Dy un~cea
~e work ~n aeCaulC ama reau,rea :o De acme Dy ~e Oevel~mer.
'ess cnan &8 ~ouro Oe~ng g~ven cnereOy ~o cna oevelomer :o remc.e
reau~remen~ Co cee Oeveloger small ~e an~ ~ereOy ~s w&lvla 'n '-~
entirety Dy C~o Olvelooer, ama ~me OtvllOOtr snal3
C?:y Foe iffy exoenoe so ~mcurrea my ~ne C~Cy Tn cna same manner
~, ~a,]ea no~ce aO aeacr~oea mere~aefore naa ~een
?. T~e Oevelo~er agrees to reimburse
an~ attorney's Fees.
90n~ al uses herein small also ~mclu~e amy ty~e
agreement or security acceOtea Oy the C~ty.
ta~e action to ~raw uoom the oon~ to enforce tn~s agreement a~ter
wor~ ama oeymenC For sam~. Tmese arovls~onl smell se aool~caole t:
tn~s agream~m~.
3. The Oevalooer ~mconaitionelly guarantees to
mater~al, Faulty war,mananas, or any otmer ~a~l~re
whether or no~ all or any OarSman of the euOa~v~s~o~ $on~ s~''
nave mean releases Dy ~ne C~y.
~0. The Oevelooer small clear amy so~l, earth or
the s~ree~e ree~l~ifl~ ~r~ ~u~la~ng on the lama w~tn~n
excavation ~e)ril or l&r~, ina rlOllr any ~emegl to
s~rFaclm9 rtlul~iflg *rom ~ne same caulll.
~stell a~d coniCruc~ any worw or ~mmrovememtl requ~rs~
oaragraom 3 tO Oe maGI Dy emi Oeve~omer, ama the Oevelooer
Agreement Oy the Oevelooer small me grounaa For aen~al
age.ts a~ successors ~ t~tle.
~a~e~ oy :ne C~t/ t~ t~,s a~ress s~al' :e
~ew Hooo,_ ~N
~one: (6~2) 535-6707
eso.eo ~ee: easler~/ ~-:m :ne -es: :~arte,
sa~ ~ec~n ~? is ~easure~ along sa': -:~-
~es~erlx along sa~a ~os~ ~or~nerly ~e ~o
~etance ~f $.00 fea~; thence ~out~arl¥ ~aral'e'
w~ ~e eou~erl¥ ex~aflalon of the eeet l~e
9; ~nence-eastsrl¥ ~&rallel w~tn sa,~
~,ne to ~s intersection w~n sa~ ~na '~";
beginning.
~h&~ O&r~ O~ ~O~ 9, "Aual~or'e Subaivision
32&, HeflneOln County, Minnesota" ~escr~e~
followl: Commeno,ng l~ t~e lntlrsec~lo~ O~
~ereinaf~er referrea to aa b~ne "A" De,rig a l~e
arawn fr~m I Doin~ on the Sou~n l~ne of sa~a ~ot
ais~an~ ese.es fee~ Eaaterly from the wee~ quarter
corner of Section 17, ?ownan~o 118, ~ange 21 as
meaeurea along alia Sou~n line aha ,ts weeter~
tx~lnOiOfl tO I ooifl~ Off Ilia ~IQl~ Northerly l~e
Lo~ 9 aia~an~ 053.30 fee~ Eaa~erly from the
~ine of Ilia Section ~7 aa measures along ella mcat
northerly line Ina i~I Wel~lrly extens,ofl:
westerly along alia m~a~ Northerly 1,ne a
su0aiv~e~ NumOer 324, Heflfleo~n
Minfle~a"; ~eflce Southerly along ~ne Eaa~ l~me
~n~ laeCerly ~arallel wi~n the
~neflce Northerly along sa~a ~ne "A" ~o
Sou~n line of Lo~ 7; ~nence wee~erly along
ee
parallel w~n sa~ ~ne "A" ~om ~ne actual
U~ne "A" ~O ~ne actual Ooln~ of
~lrlgrlO~ 2 irt ii followi: Oevelooer shall
coI~ of aemol~:~on &ne ~em~val shall ~e ~ne
~:e Preliminary Pla: &OOroval and Cona~c~onal use
reeOoc~voly.
Dlrlgrll~ 3
Two
agreee Co =y :no Oovelooer, and snell ~e ~n :re
form of:
/ /
/ /
Zrrev~cable Le~Cer of CredO: for one year.
¢t:y :hereafter.
/ /
/ X /
CorooraCe Surety ~nd.
Developer,
requee~ :na~ :ne City Engineer evalua:e cna wor~
9
an~ ~ne amoun~ of ~o~ ~ay Oe ~e~uce~ ~y ~
~ar~el &grtl ~a~ ~ormal ac~o~ ~ake~ ~7 ~e C~/
~n~ally se~ ~ere~n $nall ¢ona~,~u~e suf*~c~e~
~0
) ~.
COUNTY Off HENNE~N )
,~--
NO~&~y ~1~
STATE Off MINNESOTA
COUNTY OF HENNEPIN
clay of /(,~?/. / , i':Jg/ , Oy .
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11
REQUEST FOR ACTION
originating Department Approved for Agenda Agenda Section
City Manager EDA
,~8-92 Item No.
By: Kirk McDonald By:// 5
Management Assistant
DISCUSSION REGARDING CITY-OWNED PROPERTY AT 7305 42ND AVENUE
NORTH - ALL STAR SPORTS/VALVOLINE RAPID OIL CHANGE
Mr. Jerry Norman, owner of All Star Sports, and Mr. Robert Baldwin, realtor for Valvoline
Rapid Oil, were both in attendance at the May l lth EDA meeting in regards to the City-
owned property at 7305 42nd Avenue. The EDA indicated to Mr. Norman that if he was
interested in expanding his adjacent business onto the vacant parcel he should be prepared
to make a formal proposal to the EDA within 30 days. Norman will be making a presenta-
tion at the June 8th EDA meeting regarding development on the parcel and has prepared
the enclosed preliminary plans (site plan, floor plan, and elevations) showing expansion of
the existing All Star Sports building. A formal purchase offer on the property has not yet
been presented to the City, but it is anticipated that an offer will be forthcoming prior to
Monday nights meeting.
MOTION BY SECOND BY
Review: Administration: Finance:
RFA-O01 l~
ALL "$TAFI"~PORTS' ADDITION
PRELIMINARY" SITE" PLAN
,!
ealty
4025 WESTI~ROAOWAY ROBBINSDALE. MINNESOTA 55422 5334623
January 31, 1992
Mr. Kirk McDonald
City of l~ew [{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.
Veuv~rubv v. ours, ,
R~bert L. Baldwin
RLB/do
VALVOLINE INSTANT OIL CHANG
,.i'a:'mary 28, t992
./
This letter shall serve r.o not. ify rho, t. ?apid Oil Ckauge, !':'~c.
i,~ interested in the Fur:2nase ~.:z ..h~ aocve c.3. pticnedp-~.-.~.~..rt, y,
,~ .......... imaged =..,r,,ha=..= ice ::,~ seventy ,.,,.
($75,050). Based <,n ~erms and condit, ion$ se% f::;r~h in cur
~'' A,~h:,.~nd '-'il, r,-,., r. .... '.-i
ints letter shall no*,., bind v=~.,~.,,.,..,,~,.,..., .... ,., . ........ , ae~.,
Inc. or by any person given i~s Pouer of A~orney.
, /
Sincecely, ~ / ,,'
/ /
Mark ~e~al "
=' ' Es Representative
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 Ail 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 Ail 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 All Star Sports is enclosed for your information.
In conjunction with formally contacting Ail Star Sports, the EDA also
requested that staff pursue discussion with Valvoline Rapid Oil t~
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 act
in the range of the previous appraisal, then the City will probably act
expend the funds to have the appraisal updated. You may want to pass t~s
information on to Valvoline Rapid Oil and formulate a preliminary offer :n
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 quest~:?s
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~c~~-~ ~ ~ For Family Living
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,
[irk McDonald
Management Ass£stant/Coamu~ity Development Coordinator
~/lb
Enclosure: Minutes/Staff Reports
Dan Donahue, City Manager
Doug Sandstad, Building Official
Steve Sondrall, City Attorney
Valerie Leone, City Clerk ~%D.3~O~
Ail Star Sports ~tldflilSWied C~ ~G,~:~' For Family Livin[
1'4
I-1
REQUF_ T FOR ACTION
Originating Department Approved for Agenda Agenda Section
IDA
City Manager 6-8-92
Item No.
By: Dan Donahue By: 6
RESOLUTION AUTHORIZING AND CALLING FOR A CLOSED MEETING OF THE NEW HOPE ECONOMIC
DEVELOPMENT AUTHORITY
This resolution authorizes the EDA to hold a closed meeting.
Discussion is concerning the pending lawsuit involving the Paro's Pub
condemnation (42nd Avenue Redevelopment Project #431).
MOTION BY (~~ SECOND BY
Review: Administration: Finance:
RFA-O01
._T U t--I -- 4 -- 'B 2 T H U
15 : 26 CORR I CK & $ONBRAL~
EDA RESOLUTION NO, 92-~
RESOLUTION AUTHORIZING AND CALLING
FOR A CLOSED MEETING OF THE
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
WHEREA____~S, Minn. Stat. §471.705, Subd. l(d) authorizes and
permits the New Hope EPA--to hold a closed meeting to discuss City
issues and information protected by the attorney-client privilege,
and
WHEREAS, the New Hope EPA has commenced or has been made a
party to a lawsuit or been threatened with litigation which has
presently activated its right under the referenced statute to hold
a closed meeting, and
WHER,EA~, specifically the EPA iS a party to a lawsuit
commenced pursuant to Minn. ~?at. Chap· 117 identified as H-ennepin
County District Court File No. CD - 2075 for the purpose of
acquiring right-of-way for the wtdenin9 of County Road 9 known as
42nd Avenue North, and
WNER._~EA_.~S, a closed meeting of the New Hope EPA is necessary to
consider the acceptance or rejection of ~ settlement offer/proposal
and to consider various legal strategies for the continued
prosecution or defense of said action.
NOW, THEREFORE, BE IT REgOLVED by the Economi~ Development
Authority in an~ for the City of New Hope as fotl.ows:
That a closed meeting of the New Hope EPA shall be held
on June 8, 1992 immediately following the adjournment of
the regular meeting of the New Hope City Council, or
adjournment of the regular meetings of the New Hope EPA
or HRA in the event said public bodies have a regularly
scheduled meeting on said day, at the New Hope City
Council Chambers.
That the purpose of the meeting shall be the discussion
of settlement alternatives and prosecution/defense
strategies in connection with litigation of Hennepin
County District Court File No. CD - 2075,
That said meeting shall not be open to the public.
That the New Hope City Clerk is hereby directed to tape
record the closed meeting and preserve the tape recording
for a period of two years from the date of the meeting,
"~ U N'-- 4 -- 9 2 T H U
CORR I CK ~ $ONDRALL
That the New Hope City Clerk shall prepare, a written roll
of the members and all other permons present at the
closed meetin9 and make said roll available for public
inspection upon adjournment of the closed meeting,
Adopted by the Economic Development Authority in and for the
City of New Hopm this day of __, 1992.
Edw. J, Erickson, Chairman
At t est:
Daniel J. Donahue, Executive Oirector
~_T IJ N --
5-- 9TM~Z DR I
CORR I CK ~ SONDRALL
CORR~CK & SONDRALL
~inb~ ~cuUve O~ce Pl~
8525 ~mb~k C~sing
Suim ~203
B~ Park, M~neso~ 55443
~Ax (s~ ~5.~1
~IHAIqON D, DI/F~$Y
June 5, 1992
Mr. Daniel d. Oonahue
City Manager
city of New Hope
4401Xylon Avenue North
New Hope, MN §5428
RE:
Paro's Eminent Domain Lawsuit
Our File No: 99.64318
Dear Dan:
David Lasky's attorney has made an offer of settlement of $93~000
in connection with the referenced case. This is a reduction of
$5,000 from their previous offer of $98,000.
This case has been going on for 4 years. If you recall, the
condemnation action was started in April, 1988 and we took
possession of the property in July, 1988. The case has gone
through a valuation hearing in 1991 and the Commissioners awarded
Leaky $90,500 on June 14, 1991. This award is itemized as follows:
$40,380.00 -
40,620.00 -
500..00 -
value of land permanently taken for street
right-of-way and utilities
severance damages to the remaining property
due to the taking
statutory reimbursement of appraisal fees
$90,500. O0 - Tot al
Pursuant to Minnesota Statutes, we have already paid Leaky
$68,000.00 against the award. We currently owe Leaky $22,500.00
plus $17,871.75 in interest for a total of $40,371.75. Also,
interest continues to accrue at $4.375 per day. Acceptance of the
current offer would require a payment of $25,000.00. This is a
reduction of $15,371.75 from the $40,371.75 we now owe Leaky per
the award.
1 0 : 42 CORR I CK & $ONDRALL
P . 0~
Daniel J. Donahue
June 5, 1992
Page 2
Since we last discussed this issue in September, 1991, Lasky has
obtained a $150,000 judgment against his former tenants, Rosen and
Blumenthal. The significance of this judgment to our case is the
elimination of Lasky's claim that our abandoned "total-take"
condemnation action prevented him from renting the property. Lasky
had a lease with Rosen and Blumenthal through 1998 that was upheld
therefore he can no longer make this argument. '
Second, I think the Commissioners were incorrect in not considering
the property we vacated as part of the Nevada realignment as an
offset against the damages for the land taken to widen 42nd Avenue.
Actually, the Paro's site is now larger than it was before the
pro~ect, However, we still have a sizable utility easement over
the vacated property making that land less valuable than the land
taken along 42nd Avenue. As a result, I think the Paro's site has
been damaged but not to the extent claimed by Lasky. We probably
need to update our own appraisal to get a better handle on this
issue.
Unfortunately, there is an unresolved legal issue regarding the
vacated land which renders its utilization as an offset to damages
questionable. Specifically, one school of thought holds that if
the right-of-way vacation does not occur prior to the City's
possession on the quick--take date, it cannot be considered as an
offset. Since we did not vacate the right-of-way until 1991 or 3
years after our July, 1988 possession date, the right-of-way
vacation cannot be used as an offset under this theory. The other
and better theory holds that if the vacation occurred before the
Commissioners' award it can be' used to offset damages. In our
case, the right-of-way vacation did occur before the date of the
Commissioners' award. The Commissioners followed the first school
of thought which ! believe is contrary to Minnesota case law.
Specifically, in the Minnesota Appellate Court case of ~ity_of
Chisago..Ci~¥ v. Holt, 360 N.W.2d 390 (Minn. App, 1985), the'court
held all offsets should be determined as of the date of the
Commissioners' award and not the quick-take date. As a result of
this case, I think the Commissioners erred by not offsetting the
value of vacated land against the damages award.
Our upside risk in this case is probably $197,OOO. If Leaky is
completely successful, he could anticipate a judgment of $150,000,
additional interest based on the judgment of $37,000 and litigation
costs of $10,OOO. Our downside potential on the other hand may be
Zero if we receive a 1OO% setoff from the vacated right-of-way due
to the Nevada Avenue realignment. My recommendation is to give
Lasky no more than $22,500, bringing our total payment on this file
J U ~4 -- 5--92 F R I I 0 = 42 C 0 R R I C K ~ S 0 N I) R A L L
Dsntel J. Don&hue
June 5, 1992
Page $
tO $90~500 or the amount of the award and no more. I do not
believe a jury will award Lasky more than the Commissioners' award
in thts case. By trying the case our real risk is probably the
daily interest cost, $4.3?6, Lssky's litigation costs estimated at
$10,000, and our own litigation costs and attorney's fees, If
Lasky will not take the original award, this is a potentially
winnable case from the City's merspeftive.
Very truly yours,
Steven A. Sondrall
slf3
cc: Kirk McDonald