021191 EDAOFFICIAL FILE COPY
Agenda #1
CITY OF Nm=w HOPE
EDA AGENDA
EDA Regular Heeting #1
President Edward J. Erickson
Commissioner W. Peter Enck
Commissioner Gary L'Herault
Commissioner Gerald Otten
Commissioner Marky Williamson
February 11, lggl
City Hall
2.
3.
4.
Be
Call to Order
Roll Call
Approval of Minutes of December 27, 1990
Resolution Approving Final Site Plan for Autohaus Addition and
Authorizing Autohaus Loan as Consistent with the Development
Objectives of the 42nd Avenue Tax Increment Financing District
Other Business
6. Adjournment
Approved EDA Minutes
Meeting #12
CITY OF NEW HOPE
4401Xylon Avenue North
Hennepin County, Minnesota 55428
December 27, 1990
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
DECEMBER 10, 1990
AUTOHAUS AGREEMENT
Item 4
President Erickson called the meeting of the Economic
Development Authority to order at 8:05 p.m.
Present: Erickson, Otten, Enck, Williamson
Absent: L'Herault
Motion by Commissioner Enck, seconded by Commissioner
Otten to approve the EDA minutes of December 10, 1990.
All present voted in favor.
President Erickson introduced for discussion Item 4,
Consideration of the Agreement Between the EDA and
Autohaus to Enter into a Financial Transaction of a Low
Interest Loan to Autohaus by the EDA.
Mr. Dan Donahue stated the 42nd Avenue Redevelopment Plan
includes an objective to redevelop substandard and
blighted properties. The EDA is considering a proposal by
Autohaus to acquire an adjacent property that has been
classified as substandard and uses that property in a
manner that would fit the current zoning ordinance.
The EDA is being asked to assist by making a low interest
loan to Autohaus. The loan would be backed by tax
increment money, personal guarantees, third mortgage, and
a life insurance policy.
Kirk McDonald, Management Assistant/Community Development
Coordinator, reviewed the planning case. He stated the
preliminary plat was approved on December 11, 1989. He
stated it was approved subject to five conditions which
involved curbing, drainage and utility easements, and
preparation of a grading plan. On January 8, 1990, a
conditional use permit to allow outdoor storage and sales
and a variance to the front yard display area for striping
were approved subject to ten conditions. The ten
conditions basically dealt with set-backs, reduction in
the display area, additional landscaping, and review of
the plan by Shingle Creek Watershed District. He
commented that most of the conditions have been met. The
final plat was just recently received. Along with the
New Hope EDA
Page 1
December 27, 1990
final plat, the Planning Commission and Council have
indicated that a purchase agreement should be submitted to
show control of the site.
He also remarked that the original site plan which was
previously approved may require revisions if Universal
Color Lab remains in the building.
He next discussed drainage improvements on the property.
The City Engineer has reviewed and approved a drainage
plan subject to approval by the DNR, approval by the
Shingle Creek Watershed, and that provisions are provided
for drainage and utility easements on the final plat. Mr.
McDonald indicated the plan has been approved subject to
drainage and utility easements.
Steve Sondrall, City Attorney, asked whether the final
plat includes the Animal Hospital property. It was
determined that the plat does include it.
Mr. Sondrall stated the documents are preliminary at this
time. One condition on the mortgage that needs to be
included is the agreement that Mr. Boettcher provides a
life insurance policy relative to the face value of the
loan.
Mr. Sondrall stated the major hurdle at this time is to
schedule a simultaneous closing in connection with the
loan transaction and with the acquisition of the
properties that have been incorporated into the final
preliminary plat. He explained that Autohaus would be
acquiring the property from the school district, the EDA
would be acquiring the property from Dr. Herman and in
turn conveying the property to Autohaus. At this time the
closing of the loan transaction would take place.
He stated items required prior to the closing include
receipt of: a final plat, purchase agreements indicating
control of the property, life insurance policy as part of
the loan security, $26,260 letter of credit or bond for
public improvements (drainage) relating to the final plat,
and a copy of the signed loan commitment with Norwest
Bank.
Mr. Sondrall stated an easement is necessary from the
school district to facilitate the drainage plan. He
stated he does not foresee any problems in obtaining the
easement as the drainage plan will be beneficial to the
school district property as well as Autohaus.
New Hope EDA
Page 2
December 27, 1990
Mr. Donahue recommended that Tom Boettcher obtain legal
counsel to work with the City Attorney. Mr. Boettcher
responded that he has already obtained an attorney.
Mr. Boettcher, Autohaus, distributed to the Council a
letter detailing concerns relating to business
projections.
Mr. Boettcher commented that the average amount of sales
per month is $38-40,000 and less than 2% of their business
comes from business of the street. He stated by
increasing the retail sales by nine vehicles per month
they can achieve the projection of $50,000 in monthly
gross profit.
He stated in 1990 the Body Shop has averaged $75,050 in
sales per month and 45.3% gross profit. This reflects a
25% increase over the 1989 volume. He stated factoring in
an additional 25% increase into 1991, body work on the
additional sales vehicles and the growth of the customer
base from the increased exposure and advertising should
justify the projection of $125,000 of net sales.
Mr. Boettcher commented that the service department is at
$40,000 per month in net sales due to the purchase of a
small company "Mobility Unlimited" which builds and
services handicapped vans.
President Erickson reiterated the details yet to be
resolved: the simultaneous closing in connection with the
school property and the Herman property, Mr. Boettcher
needs to provide the City with a life insurance policy in
a face amount equalling the principal balance of the loan,
the Autohaus final plat needs to be submitted and approved
including a letter of credit guaranteeing the drainage
improvements, a copy of the loan commitment from Norwest
Bank needs to be submitted, the easement from the school
district must be obtained, and lastly, submission of a
revised site plan with changes relating to Universal Color
Lab is necessary.
The EDA next addressed the sign plan issue. Mr. Donahue
commented that there are currently two pylon signs and
when the property is combined to one plat only one sign is
allowed under city ordinance. Mr. Boettcher stated he has
obtained an architect to do a rendering of the building
and deal with the sign plans. President Erickson advised
Mr. Boettcher to have the architect contact the building
department. Mr. Boettcher advised that he will apply for
a variance during the interim.
New Hope EDA
Page 3
December 27, 1990
MOTION
ADJOURNMENT
Mr. Donahue stated the agreement is for $187,500 at nine
percent interest for a six year term. He stated one issue
yet to resolve is which party will assume the expenses for
demolition of the animal hospital building. At this time,
estimated costs of $8,600 for demolition have been
included in the loan amount.
The EDA concurred that if the final demolition costs total
less than $8,600, the loan amount will be reduced by the
difference.
The EDA discussed the cash flow projections prepared by
staff on the financial of TIF District No. 8. The
projections showed the ending cash balances in year 2004
based on several scenarios. If the loan is granted to
Autohaus and not repaid, the ending cash balance would be
about $500,000 less than if the loan were not made. If
the loan was made and fully repaid, the ending cash
balance would be $9,000 greater than if the loan had not
been made.
Commissioner Enck stated that he could not support the
loan request based upon a possible adverse impact of a
$500,000 loss compared to a potential gain of $9,000.
Motion was made by Commissioner Otten, seconded by
Commissioner Williamson approving tentative agreement with
Autohaus and directing the City Manager and staff to
obtain documents in final form. Voting in favor:
Williamson, Otten, Erickson; Voting Against: Enck; Absent:
L'Herault. Motion carried.
Motion made by Commissioner Williamson, 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
9:25 p.m.
Sincerely,
Valerie Leone
City Clerk
New Hope EDA
Page 4
December 27, 1990
REQUEST FOR ACTION
Orig~at~g Departmem Approved ~r Agenda Agenda Section
EDA
City Manager 2-11-91
Kirk McDonald ~/~/ Item No.
By: Management Assist. By: 4
RESOLUTION APPROVING FINAJSITE PLAN FOR AUTOHAUS ADDITION AND
AUTHORIZING AUTOHAUS LOAN AS CONSISTENT WITH THE DEVELOPMENT
OBJECTIVES OF THE 42ND AVENUE TAX INCREMENT FINANCING DISTRICT
The Autohaus Development contract and site plan were previously
tentatively approved subject to specific changes being made to the
site plan. A revised site plan has been submitted to the City
which incorporates all the necessary changes required from previous
approvals. It should be noted that the original site plan showed a
"showroom and display area" in the front section of the building.
Staff had requested that the site plan be revised to show that
Universal Colour Lab is presently located there and that the area
may be used in the future for showroom and display. Other changes
involved increased landscaping, decreased sales area and front
display area, and elimination of several parking stalls.
The City Attorney has revised the Development Contract to show the
private improvements the City expects to see made in consideration
of the loan agreement. A change has also been made to show that
the storm water drainage improvements are public improvements which
will become property of the City after their completion.
A public hearing will be scheduled for the next Council meeting to
authorize the sale of the property.
Staff recommends approval of the resolution.
Renew: AdrninistraUon: ~ ~ Finance:
RFA-O01 ~
FE~-- 0--~1 FRI 11~2~ ~O~RICK & $ONDR~LL
~-DA RESOLUTION NO. 91-
RESOLUTION APPROVING REVISED SITS PLAN AND
AUTHORIZING AUTOHAUS LOAN
AS CONSISTENT WITH THE DEVELOPMENT OBJECTIVES
OF THE 42ND AVENUE TAX INCREMENT FINANCING DISTRICT
WHEREAS, the Housing and Redevelopment Authority in and for
the City of New Hope (hereafter HRA) established Redevelopment
Plan 85-2, Redevelopment Project 85-2 and Tax Increment Financing
Plan 85-2 (hereafter Proje¢=) by Resolution NO. 85-08 on December
23, 1985, and
WHEREAS, the regulatlon and control of said Project was
transferred from the HRA to the Economic Development Authority in
and for the City of New HOpe (hereafter EPA), and
WHEREAS, the proposed "Autohaus Addition" (hereafter
Property) is located within the district boundaries of said
Project, and
WHEREAS, Autohaus of Minneapolis, Inc., the owner and
developer of the Property has requested financial assistance from
the EDA in the form of a short term loan for =he primary purpose
of acquiring property adjacent to its existing property for the
purpose of expanding its present facilities and that the property
it intends to acquire is commonly known as the Herman Animal
Hospital and School Distric~ property, and
WHEREAS, the acquisition and inc?rporation of said Property
into %--~--~9osed Autohaus Addition w~ll promote the purposes of
the Project by eliminating substandard properties, creating new
Jobs and increasing the tax base of the tax increment district,
and
WHEREAS, Autohaus of Minnesota, Inc. has submitted a revised
site plan prepared by Westwood Professional Services, Inc. dated
showing the plans and specifications for the
new expansio~'and-~velopment, and
A . ~HERE__A~, the EPA.hereby finds that development proposed by
u=onaus of Minneapolxs, Inc. will promote the purpose of the
Project, that it is advisable and in the best interests of the
City of New Hope and hereby determines to commit excess tax increment
generated by the tax increment district by agreeing to provide
Autohaus of Minneapolis, Inc. with a short term loan.
NOW, THEREFORE, BE IT RESOLVED by the Sconomic Development
Authority in and for the City of New Hope as follows~
FE~-- 8--91 FR I I I : 26 CORR I CK ~ $ON~RALL P o 0~
That the Executive Director is hereby authorized and
directed to take all necessary steps to provide
Autohaus of Minneapolis~ Inc. a short term loan for
$187,500.00 for a period of 6 years conditioned upon
said loan being secured by a mortgage note, mortgage
and guaranty.
That said loan shall also be conditioned upon Autohaus
of Minneapolis, Inc. execution of a Development
Contract and submission of Letter of Credit required by
said contract.
That said loan shall also be conditioned on the
submission and approval of the final plat of Autohaus
Addi:ion.
That the funds for said loan shall be provided from
surplus tax increment of TIF Districts 1606 and 1608.
m
That the revised site plan prepared by Westwood
Professional Services, Inc. dated
is hereby approved.
Dated this llth day of February, 1991.
Edward J. Erickson, ~r~si~e~t
Attest:
Daniel ~.' Donahue, Executiv~ Director
CITY OF NEW HOPE
DEVELOPMENT CONTRACT
THIS AGREEMENT, made and entered into on the date specified in
paragraph 15d hereinafter, by and between the City of New Hope,
a Municipal corporation of the State of Minnesota (hereinafter
called the City), and the Owners or Subdivider identified in
paragraph 15a herein (hereinafter collectively called the Developer
whether singular or plural), WITNESSETH:
WHEREAS, the said Developer has applied to the City for
approval of a plat or subdivision of certain land within the City
as identified in paragraph 15c herein, and
WHEREAS, The Economic Development Authority in and for the
City of New Hope (hereafter EDA) has provided to Developer a
$187,500.00 loan evidenced by a Mortgage Note dated
and secured by a Mortgage, Security Agreement and Fixture Financing
Statement dated , and
WHEREAS, Developer acknowledges and agrees that any breach of
the herein Development Contract shall be deemed a default by
Developers of the terms of the Mortgage Note and Mortgage, Security
Agreement and Fixture Financing Statement permitting the EDA to
declare any unpaid principal and accrued interest of the referenced
loan immediately due and payable upon demand by the EDA and further
permitting the EDA to commence a foreclosure action to collect said
monies pursuant to the terms of the Mortgage Note and Mortgage,
Security Agreement and Fixture Financing Statement, and
WHEREAS, it is not presently feasible to complete such
improvements, and the Developer,is desirous of proceeding at once,
and the City Council has approved or agreed to approve said plat on
the conditions (1) that the Developer enter into this Development
Contract, which Contract defines the work which the Developer
undertakes to complete within the boundaries of said plat as
described hereinafter, (2) that the Developer provide a bond or
other collateral for an amount and with a surety and conditions
satisfactory to the City, to secure the actual construction and
installation of such improvements within the period specified by
the City, and (3) that the Developer enter into all financing
documents required by the EDA to evidence and secure the
Developer's repayment of the EDA loan,
NOW, THEREFORE, the City and Developer agree as follows:
1. The recitals above and the provisions of the Platting
Chapter of the New Hope City Code, as amended to date hereof, are
incorporated herein by reference.
2. The Developer agrees to make all private improvements as
shown on the site plan and revised site plan or plans attached
hereto as Exhibit A and B within one year from the date of this
agreement, except as this period of time is extended by resolution
of the City Council. The Developer agrees to perform and complete
any additional conditions as set forth in paragraph 15e under these
same terms and conditions· These improvements shall include but
not be limited to the following:
a. Installation of concrete curb around
property as shown on site plan·
enti re
Installation of bituminous paving in the body shop
and repair storage area as shown on the site plan·
Planting of the following vegetation
landscaping as shown on the site plan:
and
150 Andorra Junipers to be planted on north
and east side of property, size 18", spacing
3' o.c,
ii.
6 Andorra Junipers to be planted on northeast
corner (inside "L") of building, size 18",
spacing 3' o.c.
iii. 33 Pfitzer Junipers to be planted on east side
of property, size 18", spacing 3' o.c.
iv·
Spruce or other acceptable conifer to be
planted on west side of property, size .,
spacing o.c.
16 Isanti Dogwood to be planted - 10 on
southeast corner of building and 6 on
southwest corner of building, size 24",
spacing 4' o,c,
vi.
1 Green Ash to be planted on southeast corner
of bu.ilding, size 2.5'.
vii .
Austrian Pine to be planted on west
property line on County Kitchen property, size
2
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
systems in all planted areas.
sprinkler
Installation of outdoor trash enclosure on south
side of building constructed of 6' foot block wa]]
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 include
but are not limited to, compliance with 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 the
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
body shop/collision repair storage area, and that
employee parking be provided on the west side of
the building,
That all drive aisles are 24' or more in width.
That the loading and unloading areas are provided
on the south side of the building.
That on-site snow storage be allowed only in the
southeast corner of the property and that use of
parking spaces will not be permitted for snow
storage on-site.
That all sales/leasing/rental display areas, both
indoors and outdoors, comply fully with all area
requirements of the City Code.
That the construction plans for the outdoor body
shop and collision repair storage area are approved
by the Building Official and Fire Chief.
3. The Developer also agrees to construct within one year
from the date of this agreement public improvements for storm water
drainage and erosion control and that it has submitted a September
12, 1990 Paving, Grading, Drainage and Erosion Control Plan
prepared by Westwood Professional Services, Inc. indicating the
improvements it hereby agrees to construct, Said plan has been
reviewed and approved by the City Engineer and Developer shall
implement this plan and construct all improvements indicated
thereon. The parties agree the improvements indicated on said plan
are necessary for adequate drainage and erosion control at the
site. Developer further agrees to complete any improvements not
indicated on the plan but reasonably necessary to facilitate the
purpose of the plan in the sole opinion of the City Engineer. Such
construction shall be subject to inspection and approval of the
City. The parties further understand and agree that approval by
the City and its Engineer does not constitute any warranty or
guarantee to the Developer and that the Developer has relied on its
own judgment or Westwood relative' to the adequacy of this plan,
The City and its Engineer have reviewed this plan solely for the
purpose of determining its ability to conform with the City's
overall storm sewer plan.
Upon the completion of the work and construction required to be
done hereunder, said storm water drainage improvements shall become
the property of the City, without further notice or action on the
part of either party hereto, other than acceptance at usage.
4. The Developer shall pay for all costs of persons doing
work or furnishing skill, tools, machinery or materials, or
insurance premiums or equipment or supplies and all just claims for
the same, and the City shall be under no obligation to pay the
Developer or any subcontractor any sum whatsoever on account
thereof, whether or not the City shall have approved the
subcontract or subcontractor, and the Developer and its surety
shall hold the City harmless against any such claims, and provide
the City with all necessary lien waivers.
5. In the event of default by the Developer as to any of the
work to be performed hereunder, the City may, at its option,
perform the said work and the Developer shall promptly reimburse
the City for any expense incurred therein by the City, provided the
Developer is first given written notice by United States Mail of
the work in default and required to be done by the Developer, not
less than 48 hours being given thereby to the Developer to remove
the default status, said notice being addressed to the Developer at
the address shown in paragraph 15b herein, notice given in this
manner being sufficient as described, by agreement of the parties
hereto. Notice to the Developer shall also constitute without
further action, notice to any contractor or subcontractor, whether
they are approved and accepted by the City or not. In the event of
emergency, as determined by the City Engineer, the 48 hours notice
requirement to the Developer shall be and hereby is waived in its
entirety by the Developer, and the Developer shall reimburse the
City for any expense so incurred by the City in the same manner as
if mailed notice as described hereinbefore had been given. It is
understood by the parties, however, that the responsibility of the
Developer is limited by strikes and force majeure.
6. The Developer agrees to hold the City harmless from any
and all claims which may arise from third parties, including
contractors or subcontractors for damages sustained resulting from
the performance or failure of performance of the above-described
work or the work required in paragraph 15e.
7. The Developer agrees to reimburse the City for all costs
incurred by the City in the enforcement of this contract, or any
portion thereof, including court costs and reasonable engineering
and attorney's fees.
8. The Developer shall deposit with the City a satisfactory
Subdivision Bond for the work specified in paragraph 3, which shall
be in the amount described in paragraph 15f, securing the full
performance of this Development Contract. The term Subdivision
Bond as used herein shall also include any type of collateral
agreement or security accepted by the City,
It is understood and agreed that failure of the City to promptly
take action to draw upon the bond to enforce this agreement after
the time of expiration by which the work is to be completed will
not waive, estop or release any rights of the City and the City can
take action at any time thereafter to require completion of the
work and payment for same. These provisions shall be applicable to
any person who gives security for or guarantees the completion of
this agreement.
9. The Developer unconditionally guarantees to the City all
work required to be performed by paragraph 3 for a period of one
year subsequent to acceptance of same by the City against poor
material, faulty workmanship, or any other failure of the work,
whether or not all or any portion of the Subdivision Bond shall
have been released by the City.
10. The Developer shall clear any soil, earth or debris from
the streets resulting from building on the land within the addition
by the Developer or its agents, successors or assigns, and shall
restore any gravel base deteriorated by mixing construction or
excavation debris or earth, and repair any damage to bituminous
surfacing resulting from the same causes.
11. The Developer agrees that the City at its option can
install and construct any work or improvements required by
paragraph 3 to be made by the Developer, and the Developer agrees
to pay all costs so incurred by the City.
12. The parties agree the breach of any terms of this
Agreement by the Developer shall be grounds for denial of building
permits for building within the addition until such breach is
corrected, either by the City or the Developer, as the case may be.
13. If any portion, section, subsection, sentence, clause,
paragraph or phrase of this Development Contract is for any reason
held to be invalid, such decisions shall not affect the validity of
the remaining portion of this Agreement.
14. This Contract shall be binding upon the parties, their
heirs, successors or assigns as the case may be. The parties
understand and agree that the Developer is responsible under the
terms of this Contract for the acts or omissions of any of its
agents and successors in title.
15. a. The term "Developer" as used herein refers to:
Autohaus of Minneapolis, Inc.
6
The address of the Developer, for purposes of this
Development Contract is as follows, and any notice
mailed by the City to this address shall be deemed
sufficient notice under this Contract, until notice
of a change of address is given to the City in
writing:
7709 42nd Avenue North
New Hope, MN 55427
Phone: (612) 535-5707
The legal description of the premises to which this
Development Contract applies consists of premises
in the State of Minnesota, County of Hennepin, to-
wit:
and is proposed to be known as
Addition.
The date of this Development Contract is:
Requirements additional to those listed in
paragraph 2 are as follows: Developer shall raze
the office building commonly known as the Animal
Hospital. The cost of demolition and removal shall
be the sole cost of the Developer. Also Developer
shall be required to comply with all of the
conditions of its Preliminary Plat approval and
Conditional Use Permit to allow for outdoor sales
in a B-3 zoning district established by City
Resolution Nos. 89-239 and 90-24 attached hereto as
Exhibits C and D respectively.
The total amount of the Subdivision Bond required
to secure the performance of the work required by
paragraph 3 is initially set at Twenty Six Thousand
Two Hundred Eighty Dollars, ($28,280.00), and is
agreed to by the Developer, and shall be in the
form of:
/ Cash deposited with City at no interest.
/ x /
Irrevocable Letter of Credit for one year,
cancellable on 30 days' written notice to
City thereafter·
/ Corporate Surety Bond.
Assigned Savings Certificate, Interest to
Developer.
The parties agree that from time to time, but not
more frequently than annually, the Developer may
request that the City Engineer evaluate the work
remaining to be done hereunder by the Developer,
and the amount of bond may be reduced by City
Council action to such dollar amount as deemed
necessary for the City by the Engineer. The
parties agree that formal action taken by the City
Council in reducing the amount of the bond as
initially set herein shall constitute sufficient
evidence, as public record, of the change in bond
amount and the parties waive written modification
of this Development Contract as to such reduced
bond requirement.
IN WITNESS WHEREOF, we have hereunto set our hands and seals.
CITY OF NEW HOPE
By
Its Mayor
By
Its City Manager
Autohaus of Minneapolis, Inc.
By
Its
By
Its
8
STATE OF MINNESOTA )
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this
day of , 199 , by EDW. J. ERICKSON and DANIEL J.
DONAHUE, the Mayor and Manager, respectively, of the City of New
Hope, a municipal corporation of the State of Minnesota, on behalf
of said municipal corporation.
Notary Public
STATE OF MINNESOTA )
) SS,
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this
day of , 199~, by
and , the
and , respectively, of Autohaus of
Minneapolis, Inc., a corporation under the laws of the State of
Minnesota, on behalf of said corporation.
Notary Public
FEB-- 8--91 FR I I I : 26 CORR I CK & $OH~RALL P . 04
AGREEMENT TO RAZE
7675 42ND AVENUE NORTH
~~ _ The parties to this Agreement are
Autohaus
of
~d~e~r~,Inc, (hereafter Owner) and the City of New Hope
(hereafter City),
P~ose. The purpose of this Agreement is to establish terms
by which Owner's property commonly known as 7675 42nd Avenue
North located in the City shall be razed by a supervised fire.
Consideration. The Owner agrees that the structure located on
sai~ property is a substandard building. Owner further
consents to the demolition of this building by the City
pursuant to Minn. stat. Section 463.151 and represents to the
City that Owner is the sole owner and/or lien holder of record
and that the building is vacant.
Payment of CosSets. nd £xpe~ses, Owner agrees %hat it will pay
the City the following costs and expenses in connection with
the demolition of this property;
am
Burning Permit. Owner agrees to make application for a
burning permit required by .~ Home Code section a.091
and pay the $500.00 fee for said permit.
Qblimation of the CitY, In consideration of aha per the terms
and conditions stated herein, the City will raze the building
by a supervised fire within 30 days from the date the City is
notified that all utilities to %he bullding have been
disconnected. The City will assume the expenses related to
the controlled destruction of fire and will hold harmless the
Owner from any and all consequences resulting from said fire.
The Owner shall remain fully responsible for all legal
consequences involving this property at all times prior to its
destruction by fire and after its destruction by fire by the
City, and that the C~ty's hold-harmless provision stated
herein, does no~ apply to these ~tme periods.
Obligation of the Owne_~. The Owner shall be responsible for
the disconnection of all utilities to the building, The Owner
shall be responsible for the removal of the remaining debris
from tbs mite at its sole expense, Removal of said debris
must fully comply with any and all federal, state and local
regulations governin9 same. The Owner will also provide a
snow fence around the destroyed property to remain until such
time as the site is developed, but for a term no= ~o exceed 12
calendar months from the first day following the supervised
fire.
FE~-- 8--91 FR I I I : 2? CORR I CK ~ $ON~RALL P . 05
Ne~ger Clause,. This Agreement expresses &11 agreements
between 'the part,es concerning the subject hereof and
supersedes all previous understendings in relating hereto,
whether oral o~ written, and shall be b~nding upon and shall
~nsure to %he benef~ of %he heirs, administrators, executors,
successors and assigns of ~he parties hereto,
AUTOHAU$ OF NINNESOTA, INC.
Dated:
By
Its
Dated:
CITY OF NEW HOPE
By
Da=ed:
By
CORRICK LAW OFFICES, P.A.
WILLIAM J. CORRICK
ST£VEN A, $ONDRALL, P,A.
STEVEN A, $ONDRALL
MICHAEL R. L~FLEUR
MARTIN P~ MALECHA
WILLIAM C. STRAIT
LEGAL ASSISTANTS
LAVONNE E. KESKE
SHARON D. DERBY
February 7, 1991
Hr. James Weltner
Attorney at Law
1618 Park Avenue
M~nneapolls, MN 55404
RE:
BoeCtcher/Autohaus Development
Your File No. 9593/27976
Our File No. 99.15025
Dear Jim:
Z nave reviewed the purchase agreements and would like the
following changes made. Both agreements refer to the property at
46%h Avenue North. That needs to be changed to 42nd Avenue North.
Regarding the purchase agreement between the City and Herman, a
reference must be made to indicate the acquisition is a direct
purchase per Minn, $%a%. §117.232. I suggest the following
language be inserted after the word New Hope on the first line of
the first page,
"pursuant to %his direct offer of purchase in lieu of
condemnation per Minn. Stat. §117.232"
Regarding the purcha~ agreement 'between Boettcher and the City,
please remove %he wold "Warranty" from the reference to the deed by
which title will be conveyed on page 2. I have never heard of a
Quitclaim W&rran~y Deed,
Also, on the third page, the Buyer must agree to prorate taxes due
and payable in 1991 otherwise the City winds up paying
approximately 4/12's of the 1991 taxes. This is not our
arrangement. Further, the Buyer is assuming payment of all specia]
assessments due and payable on the date of closing and thereafter.
Those assessments wi]l be paid at closing by the Buyer. The City
has included payment of the assessments in the loan amount and is
borrowing your client the money to pay the assessments.
Mr. James Wellner
February 7, 1991
Page 2
Also enclosed is an underlined copy of the Development Contract
with proposed changes. Basically, paragraph 2 has been redone to
show the private improvements we expect to see made in
consideration for our loan agreement. Paragraph 3 has been changed
to show that the storm water drainage improvements are public
improvements which will become property of the City after their
completion. The Letter of Credit language has been changed to
apply only to the storm water drainage improvements.
I am also enclosing a copy of my December 21, 1990 letter to
Boettcher. Before we can close this transaction, we need to
receive the items requested in said letter.
Please contact me if you have any questions.
Very truly yours,
ORIGINAL SIGNED
BY STEVEN A SONDRALL
Steven A. Sondrall
slt2
Enclosures
CC:
Daniel J. Donahue, City Manager
Kirk McDonald, Management; Asst~ THI$~OPYFOR/'
Beth Andrews
4401 X¥1on Avenue North New Hope, Minnesota 55428 Phone: 533-1521
January 24, 1991
Steve Sondrall
Corrick & Sondrall
3811 West Broadway
Robbinsdale, MN 55422
Subject: AUTOHAUS DEVELOPMENT AGREEMENT
Dear Steve:
Enclosed are two lists of items that you will want to consider for
incorporation into the Autohaus Development Agreement on page 2
where it states what the developer shall provide. The majority of
the items listed are private improvements but should probably be
incorporated into the agreement to insure compliance with the
approved plan and the conditions of approval.
One list contains general details of the site plan that was
submitted on 12-28-89. The plan was approved subject to
conditions. The second list contains specific conditions - these
will need to be addressed in a revised site plan.
Please review and give me a call if you have any comments or
questions. I have attached the Planning Consultant's report for
your information - this helps to explain several of the conditions
that were established.
Sincerely,
Kirk McDonald
Management Assistant/Community Development Coordinator
KM/lb
Dan Donahue, City Manager
Doug Sandstad, Building Official
Family Styled City'~~ For Family Living
10.
CONDITIONS OF APPROVAL
Installation of concrete curb around entire property.
Body Shop and Collision Center Repair Storage area to be
surfaced with bituminous, including concrete curb.
Sales area to be reduced by 1,958 square feet to conform with
size of building (1-1/2 times the area of the structure),
eliminating 6 parking stalls on the southeast corner of the
lot.
Setback from east property line to be 5 feet.
Front yard sales/leasing/rental display area to be reduced to
40% of the front yard area or 3,800 square feet.
Construction plans for outdoor body shop and collision repair
storage area to be approved by Building Official and Fire
Chief.
Parking stalls denoted as having poor access must be
eliminated on west side of building.
Additional landscaping to be added on the Country Kitchen
property to provide increased screening of service and body
shop area and an easement for maintenance received and filed
with the City.
The original landscape plan shows 16 Austrian Pine
located on Country Kitchen property - this is where
increased screening is needed. Exact number of trees to
be added is not defined.
Autohaus submitted the attached letter to the City from
Country Kitchen granting permission to plant trees on
property and stating that a private easement would be in
effect for landscaping and maintenance. Is this letter
'adequate?
Additional landscaping to be provided at westerly area -
eliminating Junipers and replace with taller trees for more
effective screening.
ae
The original landscape plan shows 53 Junipers located on
westerly property line by school property. These are to
be eliminated and replaced with taller trees. Exact
number of trees or type is not defined.
Approval of drainage by Shingle Creek Watershed Commission.
This has already been received.
10.
11.
12.
13.
14.
iS.
SITE PLAN DETAin
Six foot opaque security fence (chain link with barbed wire)
to be installed around perimeter of Body Shop & Collision
Repair Storage area.
Provision of on-site snow storage area at southeast corner of
property.
White sodium vapor wall lights to be installed:
-7 on west wall of building
-8 on east and northeast wall of building
-2 on south wall of building
-2 on north wall of building
Sprinkler system to be installed in planting areas.
Outdoor trash enclosure (6' concrete block wall painted to
match building) to be installed on south side of building.
Overhead lights (light poles to match existing City street
lighting) to be installed as per plan - white sodium vapor, 2
fixtures/standard - 4' below these fixtures 2 white quartz
(evening display lights only).
Handicapped parking stalls to be installed as per plan:
-3 on east side of building
-2 on west side of building
Display area in front to have bomanite paving - no striping,
as per variance from striping requirement.
New sign to comply with City Code and/or variance to be sought
with comprehensive sign plan approval.
Loading and unloading area to be provided on south side of
building.
Employee parking to be provided on west side of property·
Four painted islands to be installed in Transport Lane area·
Entire lot, except display area and body shop/collision repair
storage area, to be striped for parking.
Provision of a total of 93 parking spaces, less those to be
deleted under conditions #3 and #7.
Drive aisles not to be less than 24' wide.
Both Animal Hospital and School Board property to be included
in plat and combined into one parcel.
17. Animal Hospital Building to be removed·
-2-
18. Original Landscape Plan
A®
150 Andorra Junipers to be planted on north and east side
of property, size 18" spacing 3' o.c
, ·
6 Andorra Junipers to be planted on northeast corner
(inside "L") of building, size 18" spacing 3' o.c
, ·
33 Pfitzer Junipers to be planted on east side of
property, size 18" spacing 3' o.c
De
53 Pfitzer Junipers to be planted on west side of
property, size 18" spacing 3' o.c
, ·
16 Isanti Dogwood to be planted - 10 on southeast corner
of building and 6 on southwest corner of building, size
24" spacing 4' o.c
I Green Ash to be planted on southeast corner of
building, size 2.5'
Ge
16 Austrian Pine to be planted on west property line on
Country Kitchen property, size 6'.
Items 18D and 18G need to be revised, as per the conditions of
approval.
4401 Xylon Avenue North
New Hope, Minnesota 55428
Phone:533-1521
January 24, 1991
Mr. Thomas Boettcher
Autohaus
7701 42nd Avenue North
New Hope, MN 55427
Subject: REVISED SITE PLAN
Dear Mr. Boettcher:
On January 8, 1990, the New Hope City Council approved the zoning
requests in conjunction with the Autohaus preliminary plat subject
to the conditions listed in the attached letter. I do not believe
that a revised site plan incorporating all of these conditions has
been submitted to the City. It is essential that the City have a
copy of the final approved site plan so that it can be considered
along with the final plat approval. I would request that you
contact Westwood Professional Services, Inc. and have them submit
a revised site plan to the City that incorporates the conditions
set forth in the attached letter.
The most recent site plan that the City has is dated 12-18-89. The
major conditions outlined in the letter that are not addressed on
the site plan include:
Reduction of sales area/elimination of parking stalls
Front yard display area reduction
Elimination of parking stalls with poor access
Additional landscaping that is requested under conditions 6 and 7
also needs to be illustrated. The City staff would be glad to
discuss the specifics of these conditions with you or Westwood
Services prior,to the revisions being made if you would like.
In related matters, we are continuing to work out details on the
final plat, Development Agreement, and the agreement to burn the
Animal Hospital building. We have been working directly with the
surveyor on changes to the plat. We are waiting on the legal
description/certification portion of the plat and the purchase
agreements. If you can ex-pedite the revised site plan and plat
description, I would anticipate that the plat and all agreements
could be submitted to the Council for approval in February.
Family Styled City '~~ Fro' Family Livin~
-2-
Please contact me if you have any comments or questions.
Sincerely,
Kirk McDonald
Management Assistant/Community Development Coordinator
KM/lb
Enclosure 1-10-90 letter
cc:
Dan Donahue, City Manager
Steve Sondrall, City Attorney
Doug Sandstad, Building Official
3anuary 10, 1990
Mr. Thomas Boettcher
Autohaus
7701 42nd Avenue North
New Hope, MN 55427
Subject:
CONDITIONAL USE PERMIT AND VARIANCE TO REQUIRED
STRIPING PROVISION OF CONDITIONAL USE PERMIT (SECTION
4.124(5) (m))
7675 42ND AVEN~JE NORTH, 7701-09 42ND AVENUE NORTH, AND
PART OF 4124 WINNETKA AVENUE NORTH, NEW HOPE, MINNESOTA
Dear Mr. Boettcher:
Please be advised that on January 8, 1990, the New Hope City
Council approved the referenced request as submitted in Planning
Case 89-24, subject to the following conditions:
1. The sales area must be reduced by 1,958 square feet,
eliminating 6 parking stalls on the southeast corner of
the lot.
9.
10.
The setback from the east property line of the
automobile sales lot must be increased to five feet.
The front yard sales/leasing/rental display area is
reduced to 40 percent of the front yard area of 3,800
square feet.
The construction plans for the outdoor body shop and
collision repair storage area must be found to be
acceptable by the City Building Official and Fire
Chief.
The perking stalls denoted as having poor access must
be eliminated.
Additional landscaping be added upon the Country
Kitchen property to provide increased screening of the
se.z~ice and body shop area and that an easement for
maintenance is received and filed with the City.
Additional land_~_ca~q..~_~rovided at the westerly
~rea, ~liminati _~s~ replacing with taller
=rems zor more ez~ec=lve screening·
Plans be revised prior to issuance of a building
permit. '
Plans be reviewed by Shingle Creek Watershed
Commission.
Annual review by staff to ensure compliance with the
standards sst forth by the resolution and the City
Code·
-2-
The City Council also noted the petitioner's withdrawal of the
parking lo= setback variance request.
If you have questions, please call Jeannine Dunn.
Sincerely,
City Manager
mjd/lb
CC:
Planning Case File 89-24
Proper~y File
DISPLAY AREA MUST BE
__ SETB~K MUST BE IHCREASED
ELIMIHATE PARKING STALLS
AiX)ITIOIIAL LANDSCAIqNG TO BE*CONSIDERED
NEW HOI~. MIMf~ESOTA
e
EXHIBIT A - Revised Site Plan (12/28/89)
I
I