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HRA 06/01/2006 - 6225
CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING Thursday, June 1'2OO8,7:@OP.K4. AGENDA ' LOCATION: Council Chambers (upper level) CALL TO ORDER: ROLL CALL: APPROVAL OF MINUTES: February 2, 2006 CONSENT AGENDA: \ JConsider Claims & Expenses ............... ............................................................................. 1 0,') ~�Approval Of Resolution declaring structure 8tG000 East River Road b}h8 substandard ................. 2 �\ AnOU8| e|8CtiOO of Chair and Vice Chair for one-year terms .................................................... .3 Aop[UV8l Of ChaOQBS 03 G8texvev VV8St O8Ve|Op[D8Dt Ao[e8[DeOt . ---- ---- --. ----. 4 -\ Approval of Cost Share Agreement with City for Demographic Data ..................................... —5 � 3 Consider membership iDMN solutions for 2OO7 Legislative Session .................. ...................... G INFORMATIONAL ITEMS: GatewayNE follow up ..................................................................................................... 8 Monthly Housing Report ------...---.—.--..-----...-------.'---....8 � CITY OF FFUDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION February 2.20DG CALL TO ORDER Chairperson Commers called the Housing and Redevelopment Authority meeting to order at 7:30 p.m. ROLL CALL Members Present: [anyConnmera Virginia Gohnabe| VViUiorn Holm John Meyer Others Present: Paul Bolin, Assistant Executive HRADinector Richard Priby|. Finance Director /Treasurer Gay Cerney.HRAAttorney Mike Jezorski'HRAAccountant Scott Hickok, Community Development Director Sam Newberg' Dah|gn*n, Shend|oW8 Uban APPROVE PLANNING COMMISSION MEETING MINUTES ' December 1, 2005 MOTION by Commissioner Holm, seconded by Commissioner Schnabel, to approve the minutes as presented. UPON A UNANIMOUS VOICE VOTE, CHAIRPERSON COK8K8ERG DECLARED THE MOTION CARRIED. CONSENT AGENDA: ° Consider Claims and Expenses MOTION by Commissioner Meyer, seconded by Commissioner Holm, to approve the consent agenda. - UPON UNANIMOUS VOICE VOTE, CHAIRPERSON C0K8K8ERS DECLARED THE MOTION CARRIED. ACTION: * Ren|nxv and Approval of Budget for 2OOG Mr. Pribyl, Finance Director/Treasurer, presented the HRA budget for 2006. The budget was reviewed at the December meeting but the tax increment numbers were missing. The value information previously missing from the County is now incorporated into the 2006 budget for your review. The budget ia broken up into three categories: General Fund, Housing Fund and Capital Fund. Mr. Pribyl reviewed the proposed budget consisting of estimated revenue of $4.5 million. This is a decrease from 2005by$1.1 million (1QY6). Them 'orohengaahnm2OO5inc|udoodeon*aoe of $500,000 in both the sale of TIF funds and the tax increment revenue from Gateway West. The HRA tax levy ia increased $22'135(14%) from 2OO5. The total expenses for 2OUO are $3.7 million which ino decrease of$1.O million (21Y6) from 2005. The decrease ie related tolimited HRA Commission Feb. 2, 2006 Page 3of7 ° ADD[OQN - Reso|uUon to Amend Tax Increment Pledge Agreement Mr.Pdbyl stated that staff is asking for a resolution to amend the pledge agreement regarding the 20O5B-Bnnda. |n review of the current agreement, tax increment #Oks included and should not have been included. This resolution will remove tax increment #O from the current pledge agreement. This has been reviewed and the information is correct and it was an inadvertent inclusion that was discovered and asked toboremoved. This item will be brought before the City Council on February 13.2O00. MOTION by Commissioner Schnabel, seconded by Commissioner Meyer to amend the tax increment pledge agreement and remove Dist. #6 (Lakepoint) from the pledge agreement. ° Review 8^ Approve Development Agreement with Blue Print Homes Mr. Bolin, Assistant Executive HRA Director, reviewed back in late November HRA legal counsel drafted upa development agreement with Blue Print Homes. Discussions with the attorney for Blue Print Homes, and a review of the prevailing wage ordinance, legal counsel has drafted a development agreement for review. Staff had a discussion with Blue Print Homes and they (Blue Print Homes) stated their only concern with the development agreement had been the prevailing wage requirements. Staff recommends that HR\ review and approves the development agreement aepresented. |f any further objections arise, staff will bring the document back for amendment on March 2.200S. Commissioner Commers;questioned if the City Council was inagreement with the language in the development agreement and if the prevailing wage was included \n the Gateway East Project. Commissioner Meyers thought that the prevailing wage should apply to the Gateway West Mr. Bolin stated that there is a memo enclosed from the City Manager, William Burns, regarding the prevailing wage issue. Prior to the current ordinance adopted in1Q95. the prevailing wage did not have the same wording regarding exemptions. The ordinance that was passed was more specific to the type of project euchasGatewayVVeotandtheprevai|ingvvagedoeonntny|oheto owner occupied developments. Ms. Cerney, HRA Attorney, stated that the development agreement for Gateway West was created from a draft of the Gateway East project andthatiahowthepravai|ingwogeniauoe was added to the development agreement. Commissioner Meyers stated that he is disappointed that the developer is going to build $300.00O homes and cannot afford to pay prevailing wages. He wanted ho make sure Council does not want to take another action for Gateway West. Mr. Bolin stated that according to the memo, the Council does not expect to require prevailing wage be paid for this project. Commissioner Connnoers stated that the prevailing wages are exempt for small projects ounhae Gateway West oo HRAoou|d not require prevailing vvegen in this project. Commissioner Meyers questioned when HRA would see actual construction plans and specifications. Mr. Bolin stated that the plans will be reviewed on a house by house basis. These homes are custom built homes and the specifications are uptu each buyer. The homes will need to meet all city codes and be in character with the type of homes we are looking to see in this development. HRA Commission Feb. 2, 2006 Page 5 of 7 School, Apartments etc. but the neighborhood is confined and disconnected from the city. The site is average compared to the competition. When looking at a possible site, the developer will rank the site on things beyond their control but also loot at the potential to improve the site. The commuter rail is an amenity and would elevate the rank of the site. The surrounding employment and shopping areas are not substantial items to make the site more valuable. This particular site is average but could be improved. Mr. Newberg reviewed the demographics and with the dramatic increases in the number of echo boomer and baby boomer households, both play a role in demand for condominium development. With regard to the subject site, both groups will likely be attracted to condos developed there, although the target market may tend slightly toward buyers over 45 years of age. A wide variety of household types, including empty nesters, professional singles and couples, divorcees, and longtime area residents could be attracted to the site. Mr. Newberg stated that currently there are a lot of town home and condominium projects in the area. Because of this, they do not recommend rushing units to the market. There is likely to be substantial competition for the next couple years so it may be wise to wait a year or two before finalizing a concept and phasing plan. Several charts of current and future construction were shared along with pre -sold and units for sale. Mr. Newberg concluded that this is an average site, there is significant competition, they do not recommend hi -rise condo's, keep the price below $250,000, upgrade the current park and create a site plan that will take advantage of the commuter rail and parks. Commissioner Holm questioned the success in hi -rise condominiums in NE Minneapolis. Mr. Newberg stated that Minneapolis is successful because there are 160,000 jobs available downtown Minneapolis. The culture, theatre, museums, restaurants etc. make that area very attractive to buyers. Fridley has a history of long time home owners and is also a price sensitive area. Currently the competition is great and if there are not enough sales the project will get delayed. Commissioner Holm commented on the Parkview development in Columbia Heights and that it looks like a potential large development. Mr. Newberg stated that the Parkview development is for 250 units and a second phase of town home / condominium has not started yet. Commissioner Meyers stated that he thought Mr. Newberg provided an excellent analysis. HRA and others thought a hi -rise would be desirable on this site with the views of the river etc. The key will be to find out how to draw people to the area and what would the "wow" factor be for the area. With the trees along the river, you must construct a building 4 stories or higher to take advantage of the view of the river. If this site does not support tall condominiums, then what is the "wow" factor? Commissioner Schnabel concurred that the report was wonderful and comprehensive but also discouraging. The report is saying not to do anything with this development yet because of what is currently on the market. Hopefully with the desirability of the commuter rail it will provide housing for people who want to use those services. Mr. Newberg stated that maybe there is a way to link the commuter rail and the development together to create interest in the area. The key is to provide affordable housing. A possibly could be to remove some of the current buildings and create new housing or another possibility is to renovate the current buildings. People are looking for affordable housing and that would also create a draw to the area. H RA Commission Feb. 2, 2006 Page 7 of 7 25.2006 from A:00a.m.-2:0Op.m. Kioed the Gohvvan'o Event Center inBlaine, There will be 85 vendors attending and the event is sold out. Three workshops are available onGardening Perennials, Garage Safety and Organization and Simple Ways to Lower Energy Costs. The workshops will be held ot1O:3O and 12:30. Gateway North - East Eminent Domain - Met Council Grant Funds MOTION by Commissioner Schnabel, seconded by Commissioner Meyers, to adjourn meeting. UPON /k UNANIMOUS VOICE VOTE, CHAIRPERSON COK8K0ERS DECLARED THE MEETING ADJOURNED AT 9:20 P.M. Respectfully Submitted by, Recording Secretary City of Fridley Claims and Expenses HRA Checking 212/06 to 6/1106 Account #0000117036 Vendor Invoice # Description Code Amount Fridley HRA Housing Program 101 Housing Loan Program January 1 -15 2006 267 - 0000 - 127 -0000 1,291.88 267 - 0000 -430 -4340 26.53 1,318.41 Center for Energy and Environment 7544 Admin Fees - January 1 -15 2006 265- 0000 - 430 -4340 250.00 250.00 National Sports Center Foundation N/A Rental of Schwan's ctr for home /garden show 265- 0000 - 430 -4331 1,826.00 1,826.00 Chester Hayes N/A Relocation Expenses 471 - 0000 - 430 -4346 4,900.00 4,900.00 Land Title N/A Closing 471 - 0000 -430 -4520 235,818.90 235,818.90 Wilson Development 20397 Professional Services 471 - 0000 -430 -4330 _ 97.50 97.50 Land Title N/A Gateway West Title Work 470 - 0000 - 430 -4330 895.00 895.00 Advantage Signs and Graphics 00009498 Banner for Home Show 265 - 0000 - 430 -4335 273.71 —_— 273.71 Chester Hayes N/A Moving Expenses 471 - 0000 - 430 -4346 1,400.00 1,400.00 MN NAHRO N/A Dues 100 - 0000 - 430 -4331 150.00 150.00 City of Fridley N/A Reimbursement 100 - 0000 -430 -4332 18.25 18.25 Stephen Linn N/A Pay as you go - Linn 467 - 0000 - 431 -4510 7,995.00 7,995.00 MN Christian Homes of Fridley N/A Pay as you go - Limited Revenue 452 - 0000 - 422 -4530 38,465.84 38,465.84 332234 Krass Monroe 332235 TIF research OSA "Other Letter 450 -0000- 430 -4330 87.50 451 - 0000 - 430 -4330 87.50 458 - 0000 - 430 -4330 87.50 Medtronic Property Petition 455 -0000- 430 -4330 292.50 555.00 Dahigren Shardlow and UBAN 26655 Islands - Professional Services 471 - 0000 -430 -4340 7,105.99 7,105.99 Fridley HRA Housing Loan Program 102 Revolving Loan - Hassan 20,100.00 20,100.00 Center for Energy and Environment 7589 Origination Fees and misc 940.00 940.00 County of Anoka N/A Record keeping and administrative functions 450 - 0000 - 430 -4330 2,212.90 451 - 0000 - 430 -4330 1,889,50 452 - 0000 - 430 -4330 1,857.08 455 - 0000 - 430 -4330 431.93 456 - 0000 - 430 -4330 38513 458 -0000- 430 -4330 570.53 462 - 0000 - 430 -4330 780.70 463- 0000 - 430 -4330 771.46 464 - 0000. 430 -4330 662.93 465 - 0000 - 430 -4330 385,73 501 -0000- 430 -4330 570.53 1,064.69 City of Fridley Claims and Expenses HRA Checking 2/2106 to 6 /1 /06 Account #0000117036 Vendor Invoice # Description Code Amount 467 -0000- 430 -4330 394.97 468 - 0000 - 430 -4330 699.89 New TIF 7 618.48 12,232.36 Advance Home Products N/A Refund of Home and Garden Entry Fee 265 - 0000 - 362 -6100 175.00 175.00 Krass Monroe 78282 Miscellaneous 100- 0000 -430 -4330 1,160.00 Cash Flow /Budget 100 - 0000 - 430 -4330 647.50 Fridley: Gateway West 470 - 0000 - 430 -4330 2,097,50 Island Park Project 471 - 0000 -430 -4330 1,140.58 78946 Miscellaneous 100- 0000 -430 -4330 361.25 Cash Flow /Budget 100 - 0000 - 430.4330 46.25 Fridley: Gateway West 470 - 0000 - 430 -4330 971.25 Island Park Project 471 - 0000 -43D -4330 956.68 7,381,01 Signs by Tomorrow 14241 Hang Tag Parking Permits 100 - 0000 -430 -4221 388.73 388.73 Advantage Signs and Graphics 9567 Home Show Stakes 265- 0000 - 430 -4335 221.73 Advantage Signs and Graphics 9556 Employee Parking permit 100- 0000 - 430 -4221 96.22 317.95 Castle Visions 022806 -7 Home and Garden Show Expenses 265 - 0000 - 430 -4340 2,527.81 2,527.81 City of Fridley N/A Analysis of Bond Issuance 451 - 0000 - 475 -4750 1,501,31 Analysis of Bond Issuance 452 - 0000 - 475 -4750 329.56 1,830.87 Wilson Development 20439 Professional Services 471 - 0000 - 430 -4330 512.55 512.55 Pioneer Engineering 80073 Professional Services 470 - 0000 - 430 -4330 6,000.00 6,000.00 Dahlgren Shardlow and Uban 26728 Professional Services 471 - 0000 -430 -4330 323.80 323.80 Fridley HRA Housing Loan Program 103 6% Revolving Loan 267 - 0000 - 127 -0000 8,300.00 8,300.00 Center for Energy and Environment 7625 Origination Fees, Inspections, Remodeling 267 -0000- 430 -4340 1,930.00 1,930.00 Cenaiko Expo N/A Home Show Expense 265- 0000 - 430 -4330 3,658.55 3,658.55 Anoka County N/A 1 st/2nd half Property Tax - 23- 30 -24 -22 -0150 470 - 0000 - 430 -4350 79.97 1st/2nd half Property Tax - 14- 30 -24 -31 -0088 470 -0000 -430 -4350 819.08 1st/2nd half Property Tax - 14- 30 -24 -31 -0089 470 - 0000 - 430 -4350 79.97 1st/2nd half Property Tax - 14- 30 -24 -31 -0090 470 - 0000 -430 -4350 233.68 1 st/2nd half Property Tax - 23- 30 -24 -22 -0134 470 - 0000 -430 -4350 79.97 1 st/2nd half Property Tax - 23- 30 -24 -22 -0133 470 -0000- 430 -4350 79.97 1st/2nd half Property Tax - 14- 30 -24 -31 -0095 470 - 0000 - 430 -4350 259.72 1st/2nd half Property Tax - 14- 30 -24 -31 -0084 470 - 0000 - 430 -4350 79.97 1st/2nd half Property Tax - 23- 30 -24 -23 -0014 470 - 0000- 430 -4350 79.97 1 st/2nd half Property Tax - 23- 30 -24 -23 -0013 470 - 0000 - 430 -4350 79.97 1 st/2nd half Property Tax - 23- 30 -24 -22 -0136 470 - 0000 - 430 -4350 79.97 1 st/2nd half Property Tax - 23- 30 -24 -22 -0135 470 - 0000 - 430 -4350 79.97 1st/2nd half Property Tax - 22- 30 -24 -12 -0009 470 - 0000 - 430 -4350 1,757.39 3,789.60 Kurth Surveying Inc N/A Gateway West - Plat drawing, document reveiw etc 470 - 0000 - 430 -4330 3,755.00 3,755.00 Liesch Associates N/A Islands of Peace - Fee for Service /Postage 471 - 0000 - 430 -4330 1,064.69 1,064.69 City of Fridley HRA Checking Account #0000117036 Vendor Invoice # Description City of Fridley N/A January through March Expense Reimbursment Girl Scout Troop #165 N/A Stuffing bags during home show Ehlers & Associates 332529 General Discussion tax rate analysis Krass Monroe 79656 Miscellaneous Fridley: Gateway West Island Park Project Gateway Northeast ; CEE 7670 Remoldeling Advisor Visits, Marketing :Anoka County Plat Check Fee for Gateway West Kurth Surveying Gateway West - Plat drawing, document reveiw etc Krass Monroe 80313 Miscellaneous /Cash Flow Budget Fridley: Gateway West Island Park Project Gateway Northeast LHB N/A Professional Services Fridley HRA Hawing Loan Program 104 6% Revolving Loan Center for Energy and Environment 7699 Origination Fees, Inspections, Remodeling Claims and Expenses 2/2/06 to 6/1/06 Code Amount 100 - 0000 - 430 -4107 43,500,00 100 - 0000 - 430 -4220 518 100- 0000 -430 -4221 696.55 100 -0000- 430 -4330 490.50 100 - 0000 - 430 -4332 83.20 100 - 0000 - 430 -4336 4,860.69 100 - 0000 - 219 -1200 19.00 100 - 0000 - 219 -2300 89.84 100 - 0000 -219 -2400 478.15 100 - 0000 - 219 -1700 1,61531 100 - 0000 - 219 -2500 92.28 51,931.30 265 - 0000 - 430 -4340 345.50 345.50 100 -0000 -430 -4330 350.00 350.00 100 - 0000- 430 -4330 176,85 470 - 0000 -430 -4330 92.50 471 -0000- 430 -4330 587.50 100 - 0000 -430 -4330 293.75 1,150.60 267 - 0000 - 430 -4340 2,293.81 2,293.81 470 -0000- 430 -4330 425.00 425.00 470 - 0000 - 430 -4330 920.00 920.00 100- 0000 - 430 -4330 1,030.00 470 - 0000. 430 -4330 92.50 471 - 0000 - 430 -4330 - 100- 0000 - 430 -4330 58.75 1,181.25 471 - 0000 - 430 -4330 2,287.77 2,287.77 265 - 0000 -127 -0000 10,000.00 10,000.00 267 -0000- 430 -4340 940.00 Anoka County Delinquent taxes for 2005 470 - 0000 - 430 -4350 744.36 (Aff-1 ACTION ITEM HRA MEETING • JUNE 11 200T CrTY • FRIDLEY Date: May 25, 2006 To: William Burns, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subiect: Resolution Declaring Structure Blighted The firm of LHB was hired by the HRA to inspect the home recently purchased at 6000 East River Road. The purpose of the inspection was to determine if the home met the statutory definition of "substandard". The substandard determination and the attached resolution, declaring the property as such, will allow the HRA to demolish the home prior to the creation of a TI F District. While it seems unlikely that a TIF project will happen in the Islands of Peace neighborhood, the approval of the attached resolution will allow the property's inclusion in any such project. Staff recommends the attached resolution be approved. A similar resolution will go before the City Council. Page 2 - Resolution No. 2.03 The Board hereby finds that the Authority intends to demolish or cause to be demolished the substandard building or buildings and to prepare the Parcel for redevelopment. Section 3. Declaration of Intent. 3.01 The Board hereby declares its intent to include the Parcel within a redevelopment tax increment financing district and to file the request for certification of the Parcel as part of a district with the Anoka County Auditor within three years of when the Parcel was occupied by a substandard building or buildings. Section 4. Notice to County Auditor. 4.01 If the Authority establishes a tax increment financing district and includes the Parcel, then upon filing the request for the certification of the tax capacity of the Parcel as part of such district, the Authority shall notify the Anoka County Auditor that the original tax capacity of the Parcel must be adjusted as provided in Minnesota Statutes, Section 469.177, Subd. 1(f). PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR, THE CITY OF FRIDLEY THIS DAY OF , 2006. ATTEST: William W. Burns, Executive Director GAWPDATA \F\FRIDLEY\68 \D0GS \RES (HRA) - BLIGHT FINDINGS.DOG Lawrence R. Com=ers, Chairman 2 W I" Ift C11 FRIDLEY 191, Action Item DATE: May 26, 2006 TO: William W. Burns, HRA Executive Director FROM: Paul Bolin, Assistant HRA Director SUBJECT: Conduct Annual Meeting and Election of Officers Article V, Section 3 of the Authority's by-laws requires the Board of Commissioners to hold an annual meeting on the first Thursday of June. The purpose of the meeting is to elect a Chair and Vice Chair to one-year terms. Below is a list of the commissioners and the length of their current appointments. Commissioner Virginia Schnabel John Meyer Bill Holm Pat Gabel Larry Commers Recommendation End of Term June 2010 June 2011 June 2007 June 2008 June 2009 C, Staff recommends that the Authority conduct its annual meeting and elect a Chair and Vice Chair as required by the Authority's by-laws. A 7V ACTION ITEM H" MEETING • JUNE I � 2006 CRY • FRIDLAr uate". may zo, z-vuo To: William Burns, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subiect: Gateway West - __Changes to Development Aareement Based on the fact that a number of unforeseen minor title issues have complicated the sale of property to Blueprint Homes, legal counsel has updated the development agreement to address these issues. The changes will not affect the quality of the homes built and the end result will be 16 quality single family homes constructed in the Hyde Park neighborhood. Because of title issues, the plat has been separated into two separate filings. The northern properties are part of the Gateway West 1st Addition, which was officially filed at Anoka County on May 24th. A title examiners directive is required prior to the filing of the 2nd Addition (southern properties) and is expected to happen prior to July 1 st. The changes are all related to the delays in filing the plats and include: allowing properties on the northern block to be purchased first (instead of those across from Burger King); changing the start and end date for acquisition and construction of all properties; and minor changes to the timing of City utility installation. Staff requests that the HRA review and approve these necessary changes to the development agreement as presented. Approval of the agreement will allow this project to move forward and basement excavation to start within the next few weeks. TABLE OF CONTENTS ARTICLE I DEFINITIONS Section1.1 Definitions ......................................................................................................... 2 ARTICLE 11 REPRESENTATIONS, WARRANTIES AND COVENANTS Section 2.1 Representations, Warranties and Covenants by the Authority ..........................4 Section 2.2 Representations, Warranties and Covenants by the Redeveloper ......................5 ARTICLE III CONVEYANCE OF THE REDEVELOPMENT PROPERTY; UNDERTAKINGS OF AUTHORITY AND REDEVELOPER, Section 3.1 Conveyance of the Redevelopment Property ....................... ..............................7 Section 3.2 Letter of Credit ................................................................................................... 9 Section 3.3 Conditions Precedent to Conveyance .............................................................. 10 Section 3.4 Documents at Closing ...................................................................................... I I ARTICLE IV CONSTRUCTION OF SITE IMPROVEMENTS, PUBLIC IMPROVEMENTS AND MINIMUM IMPROVEMENTS Section 4.1 Public Improvements ....................................................................................... I I Section 4.2 Construction of Site Improvements and Minimum Improvements .................12 Section 4.3 Preliminary Plans and Construction Plans ....................... .............................12 Section 4.4 Certificates of Completion .......................................................................... 13 ARTICLE V INSURANCE Section 5.1 Redeveloper Insurance ..................... Section 5.2 Subcontractor Insurance .................. I .............................. .............................14 .............................. .............................15 CONTRACT FOR PRIVATE REDEVELOPMENT THIS AGREEMENT is made as of the day of June, 2006 by and between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority "), a public body corporate and politic of the State of Minnesota, and Blueprint Homes, Inc., a Minnesota corporation (the "Redeveloper "), WITNESSETH: WHEREAS, the Board of Commissioners (the "Board ") of the Authority has determined that there is a need for development and redevelopment within the corporate limits of the City of Fridley, Minnesota (the "City ") to provide employment opportunities, to provide adequate housing in the City, including low and moderate income housing and housing for the elderly, to improve the tax base and to improve the general economy of the City and the State of Minnesota; WHEREAS, in furtherance of these objectives the Authority has established, pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "Act "), the Redevelopment Plan (the "Redevelopment Plan ") for its Redevelopment Project No. 1 (the "Project Area ") in the City to encourage and provide maximum opportunity for private development and redevelopment of certain property in the City which is not now in its highest and best use; WHEREAS, in furtherance of these objectives and in connection with the Project Area the Authority has also established Tax Increment Financing District No. 18 (the "Tax Increment District ") pursuant to Minnesota Statutes, Section 469.174 et seq., as amended (the "Tax Increment Act "); WHEREAS, the Project contemplated by this Agreement promotes the following objectives of the Redevelopment Plan: 1. Promote and secure the prompt redevelopment of certain property in the Project Area, which property is not now in its highest and best use, in a manner consistent with the City's Comprehensive Plan and with a minimum adverse impact on the environment, and thereby promote and secure the redevelopment of other land in the City; 2. Provide for the financing and construction for public improvements in and adjacent to the Project Area necessary for the orderly and beneficial redevelopment of the Project Area and adjacent areas of the City; :3. Create a desirable and unique character within the Project Area through quality land use alternatives and design quality in new or remodeled buildings; 4. Stimulate private activity and investment to stabilize and balance the City's housing supply; and following for each building: (1) site plan; (2) foundation plan; (3) floor plan for each floor; (4) elevations (all sides); (5) landscape plan; (6) cross sections (length and width); and (7) such other plans or supplements to the foregoing plans as the Authority may reasonably request. "Council" means the Council of the City. "County" means the County of Anoka, Minnesota. "Event of Default" means an event of default as defined in Section 7.1. "Letter of Credit" means the irrevocable letter of credit to be provided by the Redeveloper to the Authority pursuant to Section 3.2 to secure the Redeveloper's obligations to accept conveyance of the Redevelopment Property and pay the Purchase Price. "Minimum Improvements" means 16 single - family homes to be constructed by the Redeveloper on the Redevelopment Property. "Minnesota Environmental Rights Act" means Minnesota Statutes, Section 11613.01 et seq., as amended. "Project" means the Redevelopment Property, the Site Improvements and the Minimum Improvements. "Project Area" means Redevelopment Project No. 1 established by the Authority. "Public Improvements" means the public improvements to be performed or constructed by the Authority on or adjacent to the Redevelopment Property and described in Schedule D. "Purchase Price" means $700,000, or $43,750 for each of 16 home lots. "Redeveloper" means Blueprint Homes, Inc., a Minnesota corporation, and its permitted successors and assigns. "Redevelopment Plan" means the Redevelopment Plan adopted by the Authority for its Redevelopment Project No. 1, as amended. "Redevelopment Property" means the real property described in Schedule A attached hereto, consisting of the North Site and the South Site, and which will be replatted to include sixteen (16) single - family home lots. "Redevelopment Property Deed" means a quit claim deed substantially in the form appearing in Schedule B attached hereto. "Site Improvements" means the improvements to the Redevelopment Property described in Schedule E attached hereto. (c) The Authority has approved the Tax Increment District pursuant to the Tax Increment Act. (d) The Authority, subject to Unavoidable Delays, shall convey title to the Redevelopment Property pursuant to Article III to the Redeveloper for the Redeveloper's use in accordance with the Plan and this Agreement. (e) Subject to Unavoidable Delays, the Authority shall complete the Public Improvements as soon as possible. (f) The Authority will cooperate with the Redeveloper with respect to any litigation commenced by third parties in connection with this Agreement. (g) The Authority has no knowledge of the presence of any hazardous substances (as the same are described in the regulations promulgated under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, and/or in the environmental laws of the State of Minnesota, and specifically including petroleum and related hydrocarbons and their byproducts, asbestos, and polychlorinated biphenyls) in, on or under the Redevelopment Property. (h) The Authority shall provide the Redeveloper with all existing environmental reports, including any Phase I and Phase II environmental site assessments, for the Redevelopment Property as well as all existing soil tests and/or reports. The Authority shall share with the Redeveloper any information which comes to the attention of the Authority after the final execution of this Agreement and which relates to hazardous substances on the Redevelopment Property. (i) The Minimum Improvements, as of the date hereof, constitute an allowed use (either as a permitted use, a special use, or a conditional use) under the zoning ordinance of the City. Section 2.2. Representations, Warranties and Covenants by the Redeveloper. The Redeveloper represents and warrants that: (a) The Redeveloper is a corporation organized and existing under the laws of the State, is authorized to transact business in the State, and has duly authorized the execution of this Agreement and the performance of its obligations under this Agreement. None of the execution and delivery of this Agreement, the consummation of the transactions contemplated by this Agreement, or the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with the terms of any indebtedness, agreement or instrument of whatever nature to which the Redeveloper is now a party or by which it is bound. (b) The Redeveloper will purchase the Redevelopment Property from the City pursuant to Article III and, in the event the Redevelopment Property is conveyed to the Redeveloper, the Redeveloper will construct and maintain (until sale of the single - family homes to bona fide purchasers), the Minimum Improvements in accordance with the terms of this Agreement and all applicable local, State and Federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). ARTICLE III Conveyance of the Redevelopment Property; UndertakinlIs of Authority and Redeveloper Section 3.1. Conveyance of the Redevelopment Property. (a) Title. The Authority shall convey marketable title to and possession of each portion of the Redevelopment Property to the Redeveloper under a quit claim deed in the form of the Redevelopment Property Deed contained in Schedule B. At its expense, the Redeveloper shall obtain any title insurance and endorsements it deems necessary. The Authority will cooperate with the Redeveloper to ensure that all purchasers of homes are provided with clear and marketable title. At its expense, the Authority agrees to obtain and shall deliver to the Redeveloper a commitment for an owner's title insurance policy (ALTA Form B) issued by a title insurance company acceptable to the Authority and Redeveloper (the "Title Company "), naming Redeveloper as the proposed owner - insured of the Redevelopment Property in the amount of the Purchase Price (the "Commitment "). The Commitment shall include removal of or endorsement over general exceptions by means of an extended coverage endorsement. The Commitment shall have a current date as its effective date and shall commit to insure marketable title to the Redevelopment Property in the Redeveloper. Such insurance shall be free and clear of all mechanic's lien claims, questions of survey, unrecorded interests, rights of parties in possession or other exceptions customarily excluded from such insurance. Such insurance shall also be free and clear of all other liens and encumbrances. The Commitment shall set forth all levied real estate and special assessments related to the Redevelopment Property. The Commitment shall include such title policy endorsements as may be reasonably requested by the Redeveloper. The Commitment shall have attached copies of all instruments of record which create any easements or restrictions which are referred to in Schedule B of the Commitment. The Redeveloper will be allowed twenty (20) days after receipt of the Commitment and Survey to make an examination thereof and to make any objections to the marketability of the title to the Redevelopment Property, objections to be made by written notice or to be deemed waived. Upon receipt of the Redeveloper's list of written objections, the Authority shall proceed in good faith and with all due diligence to attempt to cause the objections made by the Redeveloper to be cured. (b) Survey. The Authority agrees to provide and pay for a boundary survey of the Redevelopment Property sufficient to permit conveyance thereof (the "Survey "). The Redeveloper shall pay for any survey(s) necessary to replat or reconvey the Redevelopment Property, or any portion thereof. (c) Title Not Marketable. If the title to the relevant portion of the Redevelopment Property is not marketable as evidenced by the Commitment and the Survey, together with any appropriate endorsements, and is not made so by the Closing Date, the Redeveloper may either: 7 (f) Taxes-, Special Assessments; Other Pro Rations. Real estate taxes due and payable prior to the year of Closing shall be paid by the Authority. Real estate taxes due and payable in the year of Closing shall be allocated between the parties based on their respective period of ownership in the year of Closing. Real estate taxes due and payable in the years subsequent to the Closing shall be paid by the Redeveloper. The Authority shall pay all special assessments pending or levied as of each Closing Date. The Redeveloper shall pay all special assessments after the Closing Date. The Redeveloper shall bear all costs of recording the Redevelopment Property Deed except as set forth below. The Authority shall pay the State tax due in connection with conveyance of the Redevelopment Property and shall pay the cost of recording any document necessary to place title in the condition described in this Agreement. The Redeveloper shall pay all other recording costs incurred in connection with this Agreement. The parties shall equally share other closing costs. Each party shall pay all sums in cleared funds on the Closing Date. (g) Plat; Covenants; Easements. The Redeveloper at its expense shall replat the Redevelopment Property. The Redeveloper shall pay all costs for plats, replats, lot splits, preparation of restrictive covenants, easements and any other documentation necessary for the construction and sale of the Minimum Improvements and all costs of recording any such documents. Section 3.2. Letter of Credit. r' (a) At the first Closing, the Redeveloper shall furnish or cause to be furnished to the"' Authority an irrevocable Letter of Credit reasonably acceptable in form and substance to the Authority from a financial institution reasonably acceptable to the Authority. The amount of the Letter of Credit shall initially be in the amount of $568,750 (which is the total Purchase Price less payment for the first three home lots) and thereafter may be reduced to the balance owing of the Purchase Price as payments are made to the Authority. (b) The Letter of Credit shall be held by the Authority as collateral to ensure that Closings occur and the balance of the Purchase Price is paid as set forth above. If a Closing fails to occur due to no fault of the Authority, the Authority may present the Letter of Credit for payment, and, at the Authority's option, use as much of the proceeds thereof as are necessary to make the delinquent payment(s). Any excess proceeds from the Letter of Credit not needed to make the delinquent payment(s) shall be paid to the Redeveloper. The Letter of Credit shall be released upon payment in full of the Redeveloper's payment obligations hereunder. 9 Section 3.4. Documents at Closing. (a) At each Closing, the Authority shall deliver to the Redeveloper: (i) The Redevelopment Property Deed, (ii) All certificates, instruments and other documents necessary to permit the recording of the Redevelopment Property Deed, (iii) A standard Seller's Affidavit properly executed on behalf of the Authority with respect to judgments, bankruptcies, tax liens, mechanics liens, parties in possession, unrecorded interests, encroachment or boundary line questions and related matters, (iv) If applicable, the owner's duplicate certificate of title to the Redevelopment Property. The Authority need not provide an abstract of title if the property is classified as abstract property, (v) An affidavit of the Authority in form and content satisfactory to the Redeveloper stating that the Authority is not a "foreign person" within the meaning of Section 1445 of the Internal Revenue Code, and (vi) The certification as to representations and warranties described in Section 3.3 (b)(iv). (b) At each Closing, the Redeveloper shall deliver to the Authority: (i) With respect to the first Closing only, the Letter of Credit, �.n n.. ,,v .;� � : �a1� w �"}� � . ��. �- ate, � E=✓ ,i!.. � � < � , t (ii) The relevant portion of the Purchase Price in cleared funds, (iii) A Certificate of Real Estate Value, and, (iv) The certification as to representations and warranties described in Section 3.3(a)(viu) r_. ARTICLE IV Construction of Site Improvements, Public Improvements and Minimum Improvements Section 4.1. Public Improvements. The Authority will construct at no cost to the Redeveloper the Public Improvements set forth on Schedule D as soon as practicable, but no later than November 1, 2006 (subject to Unavoidable Delays). Notwithstanding the previous sentence, the Redeveloper agrees to accept conveyance of lots according to the schedule set forth in Section 3. l(d) as long as, in the Redeveloper's reasonable judgment, any uncompleted Public Improvements 11 Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity in all material respects with this Agreement, the Preliminary Plans, and all applicable state and local laws and regulations. The Authority shall approve the Construction Plans in writing if. (i) the Construction Plans conform in all material respects to the terms and conditions of the Preliminary Plans and this Agreement; (ii) the Construction Plans conform to all applicable federal, State and local laws, ordinances, rules and regulations; (iii) the Construction Plans are adequate to provide for the construction of the Minimum Improvements; and (iv) no Event of Default has occurred and is continuing. No approval by the Authority shall be deemed to relieve the Redeveloper of the obligation to comply with the terms of this Agreement and applicable federal, State and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements in accordance therewith. No approval by the Authority shall constitute a waiver of any Event of Default. Upon the Redeveloper's submittal of the Construction Plans to the Authority, such Construction Plans shall be deemed approved unless rejected in writing by the Authority, in whole or in part, within twenty (20) days after the date of their receipt by the Authority. The Authority's approval shall not be unreasonably withheld. Any rejection shall set forth in detail the reasons therefor. If the Authority rejects any Construction Plans in whole or in part, the Redeveloper shall submit new or corrected Construction Plans within a reasonable time after written notification to the Redeveloper of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the Authority. Approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements, if constructed in accordance with said plans) comply with the provisions of this Agreement relating thereto. The Construction Plans shall not be rejected due to any objection which could have been raised upon review of the Preliminary Plans and corrected more economically at that time. z r. (c) Changes. If the Redeveloper desires to make any material change in the Preliminary Plans or Construction Plans after their approval by the Authority, then the Redeveloper shall submit the proposed change to the Authority for its approval. If the Preliminary Plans or Construction Plans, as modified by the proposed change, conform to the requirements of this Section with respect to such previously approved Plans, the Authority shall approve the proposed change and notify the Redeveloper in writing of its approval. Such change in the Preliminary Plans or Construction Plans shall, in any event, be deemed approved by the Authority unless rejected in writing by the Authority, in whole or in part, within twenty (20) days after receipt of the notice of such change, setting forth in detail the reasons therefor. Section 4.4. Certificates of Completion. (a) Promptly after completion of the Minimum Improvements on each home lot, the Authority will furnish the Redeveloper with a Certificate of Completion therefor. The Certificate of Completion shall be a conclusive determination and conclusive evidence of the satisfaction and termination of the agreements and covenants in this Agreement and in the Redevelopment Property Deed with respect to the Redeveloper's obligations to construct the Minimum Improvements on such home lot. 13 V, each policy shall contain a provision that the insurer shall not cancel or modify it without giving written notice to the Redeveloper and the Authority at least thirty (30) days before the cancellation or modification becomes effective. Not less than fifteen (15) days prior to the expiration of any policy, the Redeveloper shall furnish the Authority with evidence satisfactory to the Authority that the policy has been renewed or replaced by another policy conforming to the provisions of this Article V, or that there is no necessity therefor under the terms hereof. In lieu of separate policies, the Redeveloper may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Redeveloper shall deposit with the Authority a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. Section 5.2. Subcontractor Insurance. The Redeveloper shall, from time to time, provide the Authority with evidence satisfactory to the Authority that the Redeveloper's subcontractors are maintaining workers' compensation insurance as required by all applicable laws. .I - e1-WI Prohibitions Against Assignment and Transfer; Indemnification Section 6.1. Representation as to Redevelopment. The Redeveloper represents and agrees that its purchase of the Redevelopment Property, and its other undertakings pursuant to this Agreement, are, and will be used, for the purpose of redevelopment of the Redevelopment Property and not for speculation in land holding. The Redeveloper further recognizes that the qualifications and identity of the Redeveloper are of particular concern to the Authority, in view of (a) the importance of the redevelopment of the Redevelopment Property to the general welfare of the Authority; (b) the substantial financing and other public aids that have been made available by the City or the Authority for the purpose of making such redevelopment possible; and (c) the fact that any act or transaction involving or resulting in a significant change in the identity of the party or parties in control of the Redeveloper or the degree of such control is for practical purposes a transfer or disposition of the Redevelopment Property then owned by the Redeveloper. The Redeveloper further recognizes that it is because of such qualifications and identity that the Authority is entering into this Agreement with the Redeveloper, and, in so doing, is willing to accept the obligations of the Redeveloper for the faithful performance of all undertakings and covenants hereby by it to be performed. Section 6.2. Prohibition Against Transfer of Property and Assigmnent of Agreement. Also, for the foregoing reasons the Redeveloper represents and agrees that prior to the earlier of the issuance of the final Certificate of Completion for the Minimum Improvements or the Termination Date: (a) Except for the purpose of obtaining financing necessary to enable the Redeveloper to perform its obligations with respect to constructing the Minimum Improvements and any other purpose authorized by this Agreement, the Redeveloper has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or 15 If the foregoing conditions are satisfied, then the Redeveloper shall be released from its obligations under this Agreement as to the portion of the Redevelopment Property that is transferred, assigned or otherwise conveyed. Section 6.3. Release and Indemnification Covenants. (a) The Redeveloper covenants and agrees that the City, the Authority and the governing body members, officers, agents, servants and employees of either of them (collectively, the "Indemnified Parties ") shall not be liable for, and agrees to indemnify and hold harmless the Indemnified Parties against, any loss or damage to property or any injury to or death of any person occurring at or resulting from any defect in the Minimum Improvements, due to any act, including negligence, of the Redeveloper or of others acting on its behalf or under its direction or control; provided, however, that the Redeveloper's indemnification obligations in this subparagraph (a) shall not apply to any loss resulting from negligent, willful or wanton misconduct of any of the Indemnified Parties. (b) The Redeveloper agrees to protect and defend the Indemnified Parties, now or forever, and further agrees to hold the Indemnified Parties harmless, from any claim, demand, suit, action or other proceeding by any person or entity arising or purportedly arising from this Agreement or the transactions contemplated hereby or the construction and ownership of the Minimum Improvements, due to any act, including negligence, of the Redeveloper or of others acting on the behalf or under the direction or control of the Redeveloper; provided, however, that the Redeveloper's indemnification obligations in this subparagraph (b) shall not apply to any loss resulting from any negligent or willful misrepresentation or any negligent, willful or wanton misconduct of any of the Indemnified Parties. (c) None of the Indemnified Parties shall be liable for any damage or injury to the person or property of the Redeveloper or its officers, agents, servants or employees or any other person who may be on or about the Redevelopment Property or Minimum Improvements due to any act or negligence of any person, other than the negligence or misconduct of an Indemnified Party. (d) None of the Indemnified Parties shall be liable to the Redeveloper or to any third party for any consequential or other damages that may arise out of delays of any kind relating to activities undertaken pursuant to this Agreement, including but not limited to delays due to environmental conditions, court challenges or elements outside the control of the Authority. (e) All covenants, stipulations, promises, agreements and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the Authority and not of any governing body member, officer, agent, servant or employee of the Authority in the individual capacity thereof. (f) Nothing in this Section is intended to waive any municipal liability limitations contained in Minnesota Statutes, particularly Chapter 466. 17 (b) The Authority may cancel and rescind this Agreement. (c) The Authority may withhold a Certificate of Completion. (d) Take whatever action, including legal, equitable or administrative action, which may appear necessary or desirable to the Authority, including any actions to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant to the Redeveloper under this Agreement. The Authority may elect to take no such action, notwithstanding an Event of Default not having been cured within said thirty (30) days, if the Redeveloper provides the Authority with written assurances satisfactory to the Authority that the Event of Default will be cured as soon as reasonably possible. No notice shall be required with respect to an Event of Default referred to in Section 7.1(d). Section 7.3. No Remedy Exclusive. No remedy of the Authority hereunder is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity. No delay or omission to exercise any right accruing upon any default shall impair any such right or shall be construed to be a waiver thereof, but any such right may be exercised from time to time and as often as may be deemed expedient. Section 7.4. No Implied Waiver. In the event any agreement contained herein should be breached by any party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 7.5. Agreement to Pay Attorney's Fees and Expenses. Whenever any Event of Default occurs and the Authority employs attorneys or incurs other expenses for the collection of payments due or to become due or for the enforcement or performance of any obligation or agreement on the part of the Redeveloper herein contained, the Redeveloper agrees that it shall, on demand therefor, pay to the Authority the reasonable fees of such attorneys and such other reasonable expenses so incurred by the Authority. Section 7.6. Revesting Title in Authority Upon Happening of Event Subsequent to Conveyance to Redeveloper. In the event that subsequent to conveyance of the Redevelopment Property to the Redeveloper and prior to the Termination Date: (a) Subject to Unavoidable Delays, the Redeveloper fails to carry out its obligations with respect to the construction of the Project (including the date for the completion thereof), or abandons or substantially suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, remedied or assurances reasonably satisfactory to the Authority made within ninety (90) days after written demand from the Authority to the Redeveloper to do so; or (b) The Redeveloper fails to pay real estate taxes or assessments on the Redevelopment Property or any part thereof when due from the Redeveloper or creates, suffers, assumes, or agrees 19 or any subsequent parcel and may sell or otherwise devote said parcels to such other uses as the Authority in its sole discretion determines. Any sum remaining upon resale after payment of all costs and expenses as allowed by this Agreement shall be paid to the Redeveloper. Section 7.8. Subordination. (a) The Authority recognizes that the Redeveloper intends to finance the construction of the Project (the "Construction Loan "), that in order to do so the Lender may require a first mortgage or other lien ( "Mortgage ") on the portions of the Redevelopment Property which have been conveyed to the Redeveloper which is prior to the Redevelopment Property Deed, and that the Authority will have to subordinate such rights. (b) The Authority will agree that the Lender of the Construction Loan shall have the right to cure or remedy any breach or default of the Redeveloper, provided the Lender has first expressly assumed the obligations to the Authority (by written agreement satisfactory to the Authority) to complete the Minimum Improvements on the Redevelopment Property or the part thereof which is subject to the lien of the Mortgage. Upon request of the Authority, the Lender will agree to notify the Authority of any default of the Redeveloper under the terms of the Construction Loan. The Authority shall have the right, at its option, to cure or remedy any breach or default with respect to the Construction Loan and shall have any redemption rights in the event of foreclosure. (c) Additional conditions for the Authority subordinating its interests in this Agreement and approving a Mortgage include the following: (i) The Construction Loan proceeds will be used solely for the design, development and construction of the Project; (ii) The Construction Loan proceeds will be disbursed by a title company pursuant to a construction loan disbursing or similar agreement among the Redeveloper, the Lender and the title company whereby the title company will coordinate the payment for all work which may give rise to mechanics' liens; (iii) The Authority shall have the right to review the Construction Loan documents to reasonably satisfy itself that sufficient funds are or will be available to complete construction of the Project. (d) Upon the Redeveloper's performing the above conditions, the Authority agrees that any and all rights of the Authority under this Agreement and the Redevelopment Property Deeds shall be subordinate to the rights of the Lender, including without limitation: (i) any and all rights of the Authority to the payment or use of the net proceeds of insurance; and (ii) any and all rights of the Authority to re -enter and retake possession of the Redevelopment Property and to re -vest in the Authority the estate conveyed by any Redevelopment Property Deed, 01 (b) If to the Authority: Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, 6431 University Avenue NE, Fridley, MN 55432, Attention: City Manager. Fax: (763) 571 -1287. With a copy to: Krass Monroe, P.A., 8000 Norman Center Drive, Suite 1000, Minneapolis, MN 55437, Attention: Gay L. Cerney, Esq. Fax: (952) 885 -5969. Section 8.5. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 8.6. Law Governing. This Agreement will be governed and construed in accordance with the laws of the State. Section 8.7. Termination. This Agreement shall expire on its Termination Date if it has not been terminated before such date pursuant to any provision hereof. Section 8.8. Provisions Surviving Termination. No termination of this Agreement shall terminate any indemnification or other rights or remedies under this Agreement due to (i) any Event of Default which occurred and was continuing prior to such termination, or (ii) any cause of action which arose before the termination. IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and the Redeveloper has caused this Agreement to be duly executed on or as of the date first above written. G: \WPDATA \F\FRIDLEY \61 \DOC \CONTRACT BLUEPRINT V&DOC (Signature pages follow) 23 Dated: 2006 BLUEPRINT HOMES, INC. By Its STATE OF MINNESOTA ) )ss COUNTY OF On this day of —5 20_, before me, a Notary Public, personally appeared the — of Blueprint Homes, Inc., a Minnesota corporation, and acknowledged the foregoing instrument on behalf of said corporation. Notary Public Redeveloper Signature Page - Contract for Private Redevelopment Nil SCHEDULE B FORM OF REDEVELOPMENT PROPERTY DEED THIS INDENTURE, made this _ day of , 20_, between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a public body corporate and politic (the "Grantor "), and Blueprint Homes, Inc., a Minnesota corporation (the "Grantee "). WITNESSETH, that the Grantor, in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, does hereby convey and quit claim to the Grantee, its successors and assigns, forever, all the tract or parcel of land lying and being in the County of Anoka and State of Minnesota described as follows: See Exhibit I hereto TOGETHER, with all hereditaments and appurtenances belonging thereto, subject to all conditions, covenants, restrictions and limitations imposed by: (a) the Contract for Private Redevelopment by and between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, and Blueprint Homes, Inc., dated June _, 2006 (the "Contract "); and (b) all other matters of record. The Grantor further states that: The Grantee has committed to construct certain improvements pursuant to Section 4.2 of the Contract and the Grantor has a right of re -entry in accordance with Section 7.6 of the Contract. Title is conveyed hereby subject to the following conditions subsequent: In the event that the Grantee defaults on its obligations in the Contract and fails to properly cure said default, the Grantor may declare a termination of all right, title and interest conveyed herein and all right, title and interest in the premises described in Exhibit 1 reverts to the Grantor. Upon the performance of the Grantee's obligations in the Contract, including completion of the improvements, with respect to all or a portion of the premises described in Exhibit 1 the release of the right of re -entry and reverter as to all or a portion of that premises shall be evidenced by the recording of a Certificate of Completion and Release of Forfeiture in the form attached as Exhibit 2 to this deed. 27 SCHEDULE C FORM OF CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE WHEREAS, the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a political subdivision of the State of Minnesota (the "Authority ") by a deed recorded in the Office of the County Recorder or the Registrar of Titles in and for the County of Anoka, State of Minnesota, as Deed Document Number has conveyed to Blueprint Homes, Inc., a Minnesota corporation (the "Redeveloper") certain real property described on Exhibit 1 attached to this Certificate; and WHEREAS, the Deed contained certain covenants and conditions, the breach of which by the Redeveloper, its successors and assigns, would result in a forfeiture and right of re -entry by the Authority, its successors and assigns, said covenants and restrictions being set forth in the Deed; and WHEREAS, the Redeveloper has performed said covenants and conditions with respect to the land described on Exhibit 1 insofar as it is able and in a mantier deemed sufficient by the Authority to permit the execution and recording of this Certification; NOW, THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Redeveloper have been completed and the above covenants and conditions in the Deed have been performed by the Redeveloper therein and that the provisions for forfeiture of title and right to re -entry for breach of condition subsequent by the Authority therein are hereby released absolutely and forever insofar as they apply to the land described herein, and the County of Anoka, State of Minnesota is hereby authorized to accept for recording and to record this instrument, and the filing of this instrument shall be a conclusive determination of the satisfactory termination of the covenants and conditions of the contract referred to in the Deed, the breach of which would result in a forfeiture and right of re- entry. Dated: , 200 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By Its Chairman By Its Executive Director 29 SCHEDULE D PUBLIC IMPROVEMENTS The Authority shall construct the following Public Improvements: • Building demolition and removal of demolition debris, basements and driveways. • Site clearance, including removal of all foundations and buildings and leaving the sites in a condition with clean fill to level ground. • Sanitary sewer to the edge of each of the North and South Sites — the Authority shall ensure there is sufficient sanitary sewer capacity to service the intended redevelopment. • Water mains and laterals to the edge of each of the North and South Sites — the Authority shall ensure there is sufficient water capacity to service the intended redevelopment. • Construct new sewer and water services to the front property line for all lots. • Construct a 6" water main in 3rd Street from 58th Avenue to 57th Place. • Construct an 8" sanitary sewer main in 3rd Street to serve the unsewered lots. • Remove and replace concrete curb and gutter as necessary for utilities, utility services, and driveways, and also as required to close vacated streets. • Remove existing bituminous pavement on 3rd Street, 57th Place, 58th Avenue, and 59th Avenue. • Construct new bituminous pavement on 3rd Street and on 57th Place as needed. • Environmental remediation which shall place the Redevelopment Property in a condition required by law for residential use. Such remediation shall occur if recommended by a licensed environmental engineer. • Vacation of the public rights of way indicated on Schedule A. • Ornamental fencing along University Avenue (timing to be coordinated with Redeveloper's construction of the Minimum Improvements). 31 DATE: May 25, 2006 h TO: FROM: 3 �Y William W. Burns, Executive Director Paul Bolin, Asst. Executive Director Scott J. Hickok, Community Development Director SUBJECT: Cost Sharing for Updated Demographic Data The Community development staff would like to request the Housing and Redevelopment Authorities consideration of a $5,894.50 contribution as half of the cost of our 2006 contract with Excensus LLC, to provide demographic data necessary for completion of our 2008 Comprehensive Plan Update. As you know we have begun to gather data essential to our revision of the Comprehensive Plan. One very important part of the data gathering process is updating the data associated with Fridley's demographics. We believe our data provider for the 2001 Comprehensive Plan process again has by far the industry's best approach to data analysis and presentation materials. The company name is Excensus LLC and their services allow use to better understand our marketplace thereby helping to better plan housing demands, redevelopment demands, economic development demands, parks and recreation demands, and demands on our roadways. The cost of this contract is based on a $1.05 per household figure or a total of $11,789.00. 1 have attached the contract as well as the company information regarding the deliverables expected with this 2006 contract. You'll note that this company offers an annual subscription to their services. If the City chose to track demographic changes annually, which is ideally the way we would like to track changes, they have a straight forward method of providing that service. At this time however, we are only considering a 2006 subscription contract. EX(ENSUSLLC A demographic data sem ca company April 26, 2006 Mr. Scott Hickok Community Development Director City of Fridley 6431 University Avenue NE Fridley, Minnesota 55432 Dear Scott: It was good hearing from you again. Your request for help in updating the City's demographic profile data is certainly timely. Excensus has just unveiled a new demographic subscription program, called EacensusTM Select Online that provides our city and school district clients with a suite of new tools to track demographic change associated with housing turnover, new construction, and resident aging. The following proposal outlines the scope and cost of these services. ExcensusTM Select Online Tools;'for Managing Community Change _ ExcensusTm Select Online is a web -based demographic product developed by Excensus LLC. It is designed to provide easy and flexible access to a rich base of maps, charts and tabular information describing how Fridley is changing demographically. Excensus TmSelect Online is a suite of demographic products that track and report demographic changes in ways that complement important city initiatives, such as new housing development, economic development and redevelopment, park and recreation planning, comprehensive planning and decision making. Users can draw or select an area on a live map and get up -to -date information to answer a variety of questions, for example: • What is the annual rate of resident turnover in Fridley? Is there a greater number of young households moving in than are moving out? • What are the characteristics of new residents living in a particular residential development or neighborhood? • Are families with children choosing to remain in a particular neighborhood or development? • What changes have occurred in a particular redevelopment area over the last five years? • What are the likely characteristics of new residents in a proposed townhouse development where units would be selling at $250,000 or more? 17258 Jasper Ct • Lakeville, MN 55044 Phone: 952.892.6622 • Fax: 952.435.7614 defined demographic, housing and geographic criteria). The access site includes mapping tools where users can easily define custom geographies and produce reports for those areas. • ExcensusTM Select User Group provides a user forum for exchanging findings and community applications for the maps and reports. This group also helps set priorities for annual product upgrades and data updates. BASIC CONTRACT TERMS • Annual Subscription/Licensing Agreement defining first year and maintenance year pricing and product deliverables. Data sharing agreements are also included. • Pricing — Pricing is calculated based on the number of households in each city or school district area. o $1.05 per household for 2006 (first year) and a projected $0.70 per household per year cost for succeeding renewal subscription years. There is a minimum cost of $2,500 per year for cities with fewer than 2,500 resident households. o Shared Household Savings — Where all or a portion of the city's households are shared between two or more local clients (e.g., the City of Fridley and the Fridley School District), cost savings can be significant. For each shared household in 2006, $0.40 would be returned by Excensus to the City and School District (or credited to second year maintenance costs should the City choose to renew). • Timetable — First year products will be delivered within six months based on the start date of the service contract and the delivery of shared data sets to Excensus. The ExcensusTM Select Online browser based application will be available by late summer, 2006. • Data Sharing - In addition to data already in hand, Excensus will be seeking five years of student census information from the four school districts that serve Fridley residents . Fridley and the other participating cities are asked to provide a listing of all new housing developments by address and year for the last five years while also providing support in our efforts to verify housing type and addresses within the city. Other requested data sources, if available, include utility connections, rental housing licensing data, and residential building permit data. • Data Privacy Protection - Excensus LLC will abide by all associated data privacy laws and governmental rules. In addition, Excensus expects to sign Data Confidentiality and Limited Use Agreements with all data sharing partners. Excensus has a long history of working with protected data sets like these. Agreements of this type have been forged by Excensus with a wide range of agencies including the US Census Bureau, the Office of Labor Market Information in the Minnesota Department of Employment and Economic Development, most metro area counties, and a large number of metro area cities and school districts. Excensus is experienced in maintaining data confidentiality for its clients and data providers and in strictly complying with federal and state data requirements, laws, rules and regulations. 17258 Jasper Ct • Lakeville, MN 55044 Phone: 952.892.6622 • Fax: 952.435.7614 ATTACHMENT 1: EXCENSUST"' SELECT ONLINE DESCRIPTION CRPTICAL INDICATORS of COMMUNITy CHANGE ExcensusTM Select Online is designed to produce the most current and meaningful information available. A key to this effort is the realization that demographic change in a community has a lot to do with housing — its type, availability and price. Excensus constructs a five -year historical base that connects information about all households in the City and school district(s) with their individual dwellings. For each year, one year to the next, Excensus breaks out the shifts in households by age (of householder) and by the components of residential change — housing turnover (households moving out and moving in), new housing construction, and households that age and change as they choose to remain at the same location. At the end of the process, our clients know exactly what factors caused the changes in households during these years. ExcensusTM Select Online — Change Report (Example) CHANGE REPORT - HOUSEHOLD AGING AND TURNOVER (2004 -2005) Applebee Neighborhood — Single Family Housing 0 Net Decrease Net Increase 2004 2005 Change 61 715 742 Age 65+ Age 65+ 578 -33 Age 55-64 509 S8 155 Age 45.64 m Age 55-64 a a `w Age 35-44 w` V a Under Age 35 w Age 45-54 N 2 Unknown N Age 35-44 44 Total All Ages 1 Notes: A householder is typically the oldest adult in a tYP Y Under Age 35 household or family. Household counts are summary estimates derived from public records using proprietary -s1 tools and techniques. Household counts and turnover 300 -200 -100 0 100 200 300 data are based on actual, documented moves during the Change in Number of Households selected year, ❑Aged m PlaceMH Change OMoved Out of Existing Home Copyright © 2006 by Excensus L LG. All Rights are Reserved ❑ Moved Into Existing Home M Moved Into New Home 390 390 0 437 498 61 715 742 27 611 578 -33 567 509 S8 155 167 12 2,875 2,884 9 While housing turnover and new housing construction drives changes to a community's household base, population counts and ages are a function of the mix of adults and children living in those households. Excensus produces yield tables showing the probability of finding a child or adult in a household based on householder age and various characteristics of the dwelling (including type, age, and value). Yield reports serve as an important tool for assessing the demographic impact of a proposed new 17258 Jasper Ct •Lakeville, MN 55044 Phone: 952.892.6622 •Fax: 952,435.7614 0 2 -4s 24 0 55. s 44 1 120 -s1 -3 0 ?:123 _ -141 -15 2 211 -50 While housing turnover and new housing construction drives changes to a community's household base, population counts and ages are a function of the mix of adults and children living in those households. Excensus produces yield tables showing the probability of finding a child or adult in a household based on householder age and various characteristics of the dwelling (including type, age, and value). Yield reports serve as an important tool for assessing the demographic impact of a proposed new 17258 Jasper Ct •Lakeville, MN 55044 Phone: 952.892.6622 •Fax: 952,435.7614 WHY EXCENSUSTM SELECT DEMOGRAPHICS ARE NEEDED? Community change is a reality. It is caused by the movement of households, businesses, services and jobs coming into and leaving the city. These are the basic building blocks that drive development and redevelopment in communities and they are in constant flux. Today, strategically - minded community leaders must stay ahead of these demographic changes and, in order to do that, they need access to the most current information available about their communities. This information is only available to communities and school districts that use ExcensusTM Select Online demographics. The problem is that change is accelerating. Across the Twin Cities, more than half of all households that were living at a particular address in 2000 are living somewhere else today. Without accurate demographic information, change is not predictable. Here are some examples. Many core city neighborhoods that contained "startup" housing for first -time homebuyers in the 1990s have seen housing values appreciate to the point where new first -time homebuyers today may be effectively priced out of the area. Families with young children that were almost always found in single- family neighborhoods are now just as likely to show up in apartments and townhouses. New immigrant households are entering these same neighborhoods with their own unique demographic characteristics and needs. Today older households are healthier and are choosing to remain in their homes longer — many are downsizing from large family homes to comfortable retirement homes. Without access to current demographic trend data, the impacts of these changes may elude policy makers and planners. With all of these demographic changes occurring at a very rapid pace, it is not surprising that school districts are struggling with their enrollment forecasts and elected officials are trying to make sense of the change occurring in their communities. There are risks associated with rapid, unmanaged demographic change. Over time, communities that are not able to replenish their younger growing households can face school closures, deterioration in local commercial services, reduced housing maintenance, a loss of local jobs, and a reduced tax base. The "boom or bust" history of many communities can be tied, at least in part, to these kinds of demographic swings. Historically, the most successful cities and school districts have been those with room to grow and a diverse base of new and existing housing that meets the needs of their changing resident base. Today in the core areas of the Twin Cities, with far less land available for new housing development, communities are learning to more carefully consider their development options, keeping an eye on those investments needed to ensure a healthy community that can maintain a demographic balance of residents. There is a need to make sure that all growth planning decisions end up promoting a balance of local demographics. For example, they need to know the likely mix of residents and families associated with a new townhouse development. They also need to know whether past investments have yielded expected results. If land is developed into higher priced housing, it is important to know how many of the resulting "new" residents came from elsewhere in the community. The community gains in two ways: the 17258 Jasper Ct • Lakeville, MN 55044 7 Phone: 952.892.6622 • Fax: 952.435.7614 Users can easily pick a single neighborhood, school enrollment area, precinct, or zip code area and see a history of change in that area. Using a freehand selection tool built into the application, users can draw a custom area right on the map, such as an area along a highway or around a park and produce reports showing the changing composition of residents in that area. An example of a user defined area is shown above. This capability greatly expands the usability and availability of demographic data for use by elected officials, city and school district planners, public safety officials, park and recreation administrators, and other city and school district administrators. Exhibit 11 ExcensusTM Select Demographics -- Reporting System Schematic Record Selection Criteria sic Area ehold Criteria Student Criteria Housing Criteria Data Year(s) System Components: 1. GIS Mapping Interface 2. Relational Databases (ACCESS) 3. SQL Reporting Master Database Processing Outputs cold Profiles'01 usehold Profiles'02 AHocRep & Maps I I [HouseholdProfiles'04 Profiles'05 �— ExcensusTM Select Rolling Forecast Model Structure Base Year 1 + New Housing Profile Construction Base Year 2 + New Housing Profile Construction Base Year 3 + New Housing Profile Construction Base Year 4 + New Housing Profile Construction I - Residents that + Residents that Moved Out Moved In _ Residents that + Residents that Moved Out Moved In _ - Residents that + Residents that Moved Out Moved In - Residents that + Residents that Moved Out Moved In Modeling Lavers I, Geographic Selection Area (e. g,,, Enrollment Areas) +�- Residents Aging in Place _ +�- Residents Aging m Place +�- Residents Aging in Place Residents Aging in Place Forecast Model Input Data Base Year Profile Base Year Profile Base Year Profile _ Base Year Profile A, Type and Value of Housing (e.g., Single Family GT $250,000) =F.,e 1.. Households by Age of Householder Yield Rates — a. Residents by Age 1) Students by school and grade 17258 Jasper Ct e Lakeville, MN 55044 9 Phone: 952.892.6622 • Fax: 952.435.7614 ExcensusTM Select Demographics - Data Dictionary Excensus LLC 1. Property & Dwelling Data Fife 1. 2, 3. 4, 5. 6. 7. 8. 9. 10. 11. 12, 13. 14. 15. 16, 17. 18. 19, Field Name (Short Form) Field Name (Long Form Addr id Address ID Parc_id Parcel ID Primary Primary Enrollment Area Middle Middle Enrollment Area High High School Enrollment Area Dwell_addr Dwelling Address City City Zipcode Zip Code Zip4 Zip Plus Four Homestead Homestead Dwell_type Dwelling Type Dwell _ sub Dwelling Type Subcode Dwell_styl Dwelling Style Dwell _firs Dwelling Floors Dwell _br Dwelling Bedrooms Dwell _sf Dwelling Square Feet Ttl_units Total Units in Dwelling Yrbuilt Year Built Last sold Last Dwelling Sales Year Description Unique Address Identifier Property Parcel Identifier (County Assigned ID) AHSD Primary School Enrollment Area AHSD Middle School Enrollment Area AHSD High School Enrollment Area Address of Dwelling City of Residency Zip Code Zip Plus Four Homestead Status (True or False) Type of Dwelling (SF, TH, Condo, Apt, MH, etc.) Dwelling Type Detail Code Style of Dwelling (Rambler, colonial, two -story, etc ) Number of floors above ground Number of bedrooms in dwelling Square feet of living space in dwelling Total Units in Dwelling Structure Year, the Dwelling was Built Year the Dwelling was Last Sold 17258 Jasper Ct e Lakeville, MN 55044 11 Phone: 952.892.6622 s Fax: 952.435.7614 C SSLlt components of demographic change and see the impacts of household turnover and new housing construction on any user defined demographic group and/or area. • ExcensusTM Turnover Report -- a custom report that shows the rate at which households are moving to new locations both in total and within five householder age groups. • ExcensusTM Population Yield Report — a custom report that profiles resident population yields per household by resident age and by householder age. For school district subscribers an additional report provides yield rates summarized by school grade levels. • ExcensusTM Housing Yield Report -- a custom report that shows household yields by type of dwelling and householder age. • ExcensusTM Select User Group -- a user forum for exchanging findings and community applications for the maps and reports generated by ExcensusTM Select Online. This group helps establish priorities for annual product upgrades and data updates. 4. Subscriber Data Sharing: Subscriber Data Sharing is the sharing of public data under control of a Subscriber and summarized for use in ExcensusT" Select Online delivered maps, reports and change indices for the common benefit of participating Subscribers. Data sets that Provider will need to achieve this benefit include, but may not be limited to, student census data, utility connect data, rental housing licensing data, residential building permit data, and new housing development data. Subscriber agrees to provide access to Subscriber managed data and datasets in a timely manner where the data exists and can be shared under the controlled provisions of this Subscription Agreement without violation of explicit state or federal privacy laws and data sharing regulations. Provider agrees to all associated database security and privacy protection rules as set forth in Federal and State data practices laws and regulations. 5. Use of Excensus' M Select Online ExcensusTM Select Online may be used for any Subscriber business or organizational purpose subject to the terms of this Subscription/licensing Agreement. Without limiting the foregoing, Subscriber may not provide, grant access or otherwise make available to any third party the ExcensusTM Select Online product or service(s), except to those third -party users and subscribers previously authorized by Provider. Subscriber cannot use ExcensusTM Select Online for any purpose that is unlawful or prohibited by this Subscription Agreement. Subscriber acknowledges and agrees that ExcensusTM Select Online is provided by Provider, its affiliates and any subsidiaries and /or partnerships on the basis that it denies any liability for any data errors or inaccuracies and resulting from use by Subscriber in any manner. For other product usage restrictions, see the Intellectual Property and licensing provisions of this agreement. 6. Administration of ExcensusTM Select Online Provider is committed to delivering superior service and quality products to its Subscribers. Without limiting the foregoing, Provider reserves the right to change, modify, suspend or discontinue any aspect of the ExcensusTM Select Online product or services at any time, without notice, liability or limitation. Provider may also impose limits on certain content or restrict access to parts or all of ExcensusrM Select Online including features, hours of availability, or content without notice or liability. Further, Provider reserves the right to be free to exercise initiative, ,judgment and discretion in its sole determination of how best to perform or provide ExcensusTM Select Online products and services to its Subscribers. 7. Changes to Subscription Agreement Provider reserves the right to modify, amend, change, delete or make additions to this Subscription Agreement from time to time, except for Pricing in force or provisions stipulated in existing data sharing agreements, upon giving Subscriber notice by any means permitted herein, at Provider's sole discretion. If any changes are unacceptable to Subscriber or cause Subscriber to no longer be in compliance with this Subscription Agreement, Subscriber must cease to use ExcensusTM Select Online. Continued use by Subscriber following posting or delivery of notice of change shall constitute binding acceptance of any and all such modifications. 8. Subscription Fees and Discounts: Subscriber fees are based on the number of households within each subscriber's jurisdictional, geographic area and calculated at a rate of $1.05 per household for first -year Subscriptions and $0.70 per household per year for optional Subscription renewal years. These costs are subject to change annually by Provider based on historical costs and planned product or service enhancements. The household count used in calculating first- Version 1.0 (Excensus LLC, 050106) Page 2 of 8 XSUSLLC of any data, information or related software. Software or other material downloaded to Subscriber's computer(s), telephone or other device from Provider or which may be otherwise obtained through use of Excensus'" Select Online products and services will be at Subscriber's risk and Subscriber will be solely responsible for any damage to its property, injury, loss of data, or otherwise that may result. No Subscriber to EXcensusT"t Select Online shall have the authority to create any warranty regarding ExceuSUsTM Select Online, its products and /or services. 14. Exclusion And Release Of Liability; Execution Of Consequential Damages: TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW. PROVIDER SHALL NOT BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTIAL, SPECIAL CONSEQUENTIAL, OR PUNITIVE DAMAGES INCLUDING, WITHOUT LIMITATION (AND WITHOUT LIMITATION AS A RESULT OF NEGLIGENCE), LOST OR IMPUTED PROFITS, BUSINESS INTERRUPTIONS, LOST DATA, COST OF PROCUREMENT OF SUBSTITUTE SERVICES, OR PERSONAL INJURY OR DEATH THAT RESULT FROM THE USE OR INABILITY TO USE EXCENSUST "1 SELECT ONLINE PRODUCTS AND SERVICES. THE FOREGOING LIMITATION WILL APPLY EVEN IF PROVIDER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND EVEN IF SUCH DAMAGES WERE FORESEEABLE. WITHOUT LIMITING THE FOREGOING, PROVIDER SHALL NOT BE LIABLE FOR, AND SUBSCRIBER PROSPECTIVELY WAIVES AND RELEASES PROVIDER FROM ANY CLAIMS ARISING OUT OF OR RELATING TO SUBSCRIBER'S USE OF EXCENSUST "f SELECT ONLINE PRODUCTS AND SERVICES, INCLUDING WITHOUT LIMITATION SUBSCRIBER'S ACCESS TO OR USE OF THE DATA, INFORMATION AND RELATED MAPS AND REPORTS, THE SOFTWARE OR ANY SERVICES AVAILABLE THROUGH OR USED IN CONJUNCTION WITH EXCENSUSTM SELECT ONLINE; ANY CLAIMS ARISING OUT OF OR RELATING TO THE CREATION, CONTENT, STORAGE, TRANSMITTAL, DISSEMINATION, ACCESSING, RECEIPT, USE, DELAY, FAILURE, INTERRUPTION, CORRUPTION, OR INTERCEPTION OF ANY DATA, INFORMATION AND /OR. REPORTS; AND ANY CLAIMS ARISING OUT OF OR RELATING TO ANY DELAY, FAILURE, INTERRUPTION OR LOSS OF SERVICE. IF, DESPITE THE FOREGOING, PROVIDER IS FOUND TO BE LIABLE TO SUBSCRIBER, THEN THE ENTIRE AGGREGATE LIABILTY OF PROVIDER FOR ALL CLAIMS AND CAUSES OF ACTION OF ANY TYPE WHATSOEVER RELATING TO THE EXCENSIJS7" SELECT ONLINE PRODUCTS AND SERVICES, WHETHER BASED ON CONTRACT, NEGLIGENCE, RECKLESSNESS, STRICT LIABILITY OR OTHERWISE, FOR ANY PERSON, PROPERTY, LOSS OF DATA, LOST PORFITS, BUSINESS INTERRUPTION, DESTRUCTION OF BUSINESS OR OTHER BUSINESS INJURY, AND ANY OTHER INJURIES OR DAMAGES OF ANY KIND SHALL NOT UNDER ANY CIRCUMSTANCES EXCEED THE SUBSCRIPTION FEES ACTUALLY PAID BY SUBSCRIBER IN THE SIX (6) MONTHS IMMEDIATELY PRIOR TO THE EVENT GIVING RISE TO THE CLAIM. 15. 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Provider is not responsible for, and Subscriber hereby waives any claim against Provider in connection with any Linked Sites. Provider is providing these links to Subscriber only as a convenience, and the inclusion of any link does not imply endorsement by Provider of any Linked Sites or any information, product or services contained in such sites. Version 1.0 (Excensus LLC, 050106) Page 4 of 8 EX(ENSUS111 21. Survival: All terms, conditions and warranties contained in this Subscription Agreement and License Agreement incorporated herein, which by their sense and context are intended to survive the performance hereof by the parties hereunder shall survive the completion of the performance, cancellation or termination of the Subscription Agreement. 22. Jurisdiction and Limitation of Action: Exclusive jurisdiction and venue for any dispute with Provider, or which in any way relates to Subscriber's use of Excensusn' Select Online, resides in the state and federal courts located at St. Paul, Minnesota, and Subscriber consents to the exercise by those courts of personal jurisdiction over it. For purposes of the preceding sentence, "Provider" shall include Provider and all other entities identified elsewhere in this Subscription Agreement. If any provision of this Subscription Agreement is found to be invalid or unenforceable by any court having competent jurisdiction, the invalidity of such provision shall not affect the validity or enforceability of any remaining provisions of this Subscription Agreement and the invalid or unenforceable provision will be deemed superseded by a valid, enforceable provision that closely matches the intent of the original provision and the remainder of this Subscription agreement shall continue in full force and effect. No waiver of this Subscription Agreement shall be deemed a further or continuing waiver of such term or condition or any other term or condition. Provider's failure to exercise or enforce any right or provision of this Subscription Agreement shall not constitute a waiver of such right or provision. Subscriber agrees that regardless of any law to the contrary, any claim or cause of action that Subscriber may have with respect to Provider or relating to use of the ExcensusTM Select Online must be commenced within six (6) months after the claim or cause of action arises, or such claim or cause of action is forever barred. 21 Complete Agreement: This Subscription Agreement and the ExcensusTM Select Online products and services provided constitute the entire agreement and understanding between Provider and Subscriber and shall supersede all prior or contemporaneous communications and/or understandings. This Subscription Agreement may not be modified except by (a) Provider as described herein, or (b) by a subsequent writing signed by Provider and Subscriber. 24. License Agreement: THIS LICENSE AGREEMENT ( "License ") governs Subscriber's access to ExcensusTM Select Online, and its related data, products, information and services. In addition to the definitions above that are incorporated herein by reference, the following definitions shall apply to THIS LICENSE AGREEMENT: • License means this Licensing Agreement and the rights and obligations that it creates. The license granted by this Subscription Agreement is non - transferable to a Third Party User by Subscriber and is non- exclusive. Moreover, nothing herein shall authorize a Subscriber to grant a sublicense for use of ExcensusTM Select Online. • Third Party User is a third party authorized on behalf of the Subscriber to have access to ExcensusTM Select Online strictly for Subscriber's internal business or organizational purposes. Third Party User(s) shall have no entitlement to the data and may not, in any manner, copy, distribute, or otherwise make ExcensusTM Select Online Data available to other parties. Subscriber can add additional Third Party Users by giving Provider written notice and having each such Third Party User execute a License Agreement that will be provided by Provider. LICENSED DATA DISTRIBUTION k Authorized .Distribution. Provider is the only entity authorized to distribute the ExcensusTM Select Online products and services to a Subscriber that meets the terms and conditions of this License. No succeeding -year updates are authorized as part of this License. Subscriber may provide access to ExcensusTM Select Online or the maps, reports and profile data thereof to Licensed Third Party Users but only as referenced herein. USE OF LICENSED DATA A. Authorized Uses. Subscriber is granted a limited, nonexclusive right by Provider to have and use ExcensusTM Select Online provided Subscriber is complying with all of the terms and conditions of the Subscription Agreement and underlying License. Subscriber may use ExcensusTM Select Online, data, Version 1.0 (Excensus LLC, 050106) Page 6 of 8 u s ", G. Trademarks and Attribution. Any and all maps, tables, graphs, or reports produced by Subscriber or Third Party User and derived from use of ExcensusT "'l Select Online shall attribute the information to "ExcensusTM Select Online" and identify "Bxcensus LLC" as the source of the information. LICENSE TERM AND TERMINATION A. Term. The term of this License shall commence upon execution of the Subscription Agreement and shall terminate contemporaneously with the termination date of the Subscription Agreement. B. Termination. This License shall terminate if the Subscriber or Third Party User fails to comply with the terms and conditions of the Subscription and this underlying License Agreement, If the Subscriber or Third Party User no longer has the right to use Excensus 1 Select Online, the Subscriber or Third Party User must immediately discontinue use of the ExcensusTM Select Online software and delete all references to access codes and passwords, DISCLAIMERS A. Limited Warranty. Excensus"m Select Online is made available to the Subscriber and any Third Party User subject to the all of the terms and conditions of the master Subscription Agreement and License and any Third -Party consent to all such terms and conditions. GENERAL, TERMS AND CONDITIONS A. Invalidity and Severability. If any term or provision of this License or the application of this License or its provisions to any person or circumstance shall to any extent be declared or found invalid or unenforceable, the remainder of this License shall remain in effect and enforceable. B. Governinay Law, This License shall be governed by and interpreted pursuant to the laws of the State of Minnesota. C. Assimnment. The Subscriber and/or Third Party User shall not assign or transfer this License in whole or in part. THE UNDERSIGNED ACCEPTS THE TERMS AND CONDITIONS OF THIS SUBSCRIPTION /LICENSE AGREEMENT. SUBSCRIBER: By: Its: Phone: Date: THIRD PARTY USER ( #1): THIRD PARTY USER (# By: By: Its: Its: Organization: Address: Date: Organization: Address: Date: Version 1.0 (Excensus LLC, 050106) Page 8 of 8 CITYOF FRIDI-EY Fridley Housing and '12'edcKdop I MCILlaftaLLIt [UT-MV21[ol :IMAIN ► 103 10 LVI DATE: May 25, 2006 TO: William W. Burns, HRA Executive Director FROM: Paul Bolin, Assistant HRA Director SUBJECT: Consider Membership in Minnesota Solutions for 2007 Legislative Session As you are aware, Minnesota Solutions is a consortium of communities throughout the state that focuses on redevelopment issues, such as tax increment financing, redevelopment funding, soil contamination and related issues. Bonnie Balach, the group's Executive Director, spends a great deal of time working on legislative issues that affect communities like Fridley. She has been a valuable advocate for inner-ring suburbs and older cities that have redevelopment needs. Frankly, there are very few individuals at the state capitol working on these specialized issues. Attached is a memo from Ms. Balach that provides a wrap-up on redevelopment issues during the 2006 legislative session. Ms. Balach sends out multiple legislative updates throughout the session and keeps a close eye on issues affecting Fridley. Staff believes it is important to remain active and engaged at the Legislature. There are many important issues that need to be addressed in the 2007 session. I Recommendation Staff recommends that the Authority participate in Minnesota Solutions for 2007 at cost of $1,500. Page 1 of 2 From: Bonnie Balach [bbalach @comcast.net] Sent: Tuesday, May 23, 2006 6:38 PM To: Jim Norman; David Black; Bob Streetar; Michael Posnick; Gary Stenson; Al Swintek; James Keinath; Betsy Hodges; Kristina Smitten; Gary Peltier; Branna Lindell; Bob Schreier; Wendy Underwood; Marc Nevinski; Rich Carlson; Steve Billings; Minnesota NAHRO; Mary Beth Davidson; Hickok, Scott; Matt Fulton; Doug Carlson; Tammy Omdal; Victoria Reinhardt; Jim Holmes; Al Madsen; Ken Stabler; Brad Hoffman; Neal Beets; Bruce Nordquist; Jamie Radel; Walt Fehst; Laura Harris; Dave Kelliher; Carol Kelleher; Sarah Erickson; Tim Cruikshank; Lorrie Louder; Bolin, Paul; Tom Cotruvo; John Grossman; Patricia Gustafson; Nancy Norr; Dan Donahue; Patrick Connoy; Paul Hyde; Clark Arneson; Grant Fernelius; Kathy Hahne; Guy Peterson; Kari Gill; Louis Jambois; Kevin Walli; Barb Nelson; Scott Benson; Aaron Backman; Bruce Thielman; Ann Norris; Joseph Strauss; Kurt Ulrich; Mary Frances Skala; Ron Wood; Marcia Glick; Cathy Sorensen; Nora Jost; Steve Bubul; Bill Barnhart; Jan Gustaafson; Meredith Udoibok; Sean Sullivan; Craig Waldron; Karen Skepper; Ron Rankin; John Sullivan; Jim Kerrigan; Kevin Locke; Dianne Krogh; Bob Benke; Robert Kirchner; Jenn O'Rourke; Bret Heitkamp; Thomas Paschke; Debra Detrick; Cathy Bennett; Greg Hunt; John Kari; Jim Carufel; Michael McCauley; Dan Rogness; Patricia Nauman; Tom Harmening; Ann Higgins; John Kaul; Doug Reeder; Bryan Lloyd; Terry Speiker Subject: End of Session April 23, 2006 TO: Minnesota Solutions' Participants FR: Bonnie Balach RE: End of Session The legislative session ended on time and the results are a mixed bag. Eminent Domain already seems like old news. There is no doubt that it absorbed many of us to the detriment of other issues for months prior to session and for most of the 2006 legisaltive session. Following are some highlights that seem pretty paltiy especially given how much work it was. Trying to find vehicles for legislation was most definitely the big challenge of the session: Redevelopment Account: The good news is, $9M in state bonding was appropriated. The bad news is, our attempts to regain access to the funds for cities in the Metropolitan Area failed. I think it's time to give up on this program. I would like to explore the possibility of two new programs to serve infrastructure and redevelopment in the Metropolitan Area -- one for cities of the first class and one for suburban cities. To that end, I will be contacting you individually to determine the nature of the financial barriers to development faced in your communities. I anticipate that we will work closely with AMM on this issue. We might want to reevaluate the current Redevelopment Account criteria in light of those surveys. Contamination Cleanup Grant Account: We didn't get anywhere with our attempt to harness the proceeds from the Contamination Tax for the Contamination Cleanup Grant Program. I still think that is attainable. This session there weren't a lot of policy bills that went forward. Picking vehicles for language was dicey business. Tax Increment Financing: One of our greatest achievements was in keeping Senator Marty's language from being adopted by the tax conference committee. His language would have prevented cities from reimbursing themselves with tax increment for administrative costs incurred prior to district 5/25/2006 ACTION ITEM HRA MEETING • JUNE 11 2006 CITY OF FqIDLV Date: May 25, 2006 To: William Burns, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subject: 6000 East River Road -- Awarding of Demolition Contract As the demolition cost for 6000 East River Road is well below the $50,000 threshold that would trigger a formal bidding process, staff obtained a proposal from Veit Companies to complete the work. Veit has a history of doing excellent hazardous material removal, demolition, reclamation, and disposal work with the Fridley HRA. Veit was the winning bidder for last year's Gateway West demolition project. Veit is easy to work with and does quality work. More importantly their pricing is always competitive and we are ensured that the asbestos and other hazardous materials are properly disposed of. Veit is prepared to begin the hazardous materials abatement, cap the existing well, remove the existing septic system, demolish the home & garage, remove all debris, fill basement hole, place topsoil and seed for a cost of $14,226. Staff recommends that the HRA approve and accept this proposal. The home will be removed and the site cleaned up by early July. (A 7V HRA INFORMATIONAL ITEM JUNE 19 2006 • • FRIDLEY Date: May 25, 2006 To: William Burns, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subiect: Gateway Northeast True Cost Update At the joint Council/HRA meeting held in early April staff recommended that we work with Wilson Development Group & Krass-Monroe to develop realistic costs of acquiring the properties in the area. Attached to this memo you will find the analysis done by our consultants. To summarize, the properties will be expensive to acquire ($2.1 - $2.4 million) and do not provide enough useable land area to create enough new development to recover the costs. It is anticipated that TIF revenue and land sale would only provide $375,000, leaving a shortfall in excess of $2 million. It may be possible to combine this project with a larger project (ie. Rail Station Site) providing more TIF revenue to help recover costs. Staff recommends that the HRA and Council hold a joint meeting at some point in the future to discuss the potential of acquiring the Rail Station Site and the properties in the Gateway Northeast area. There are @ nUOOb8[ Of reasons why this project generates GD little tax iOC[e[ngOt and requires such substantial HRA and City resources to proceed. These problems include: • High current @SS8SG8d value of the site ($1.5 [OiUiOD) • Only @ 2.1 b[O8G iOC[egGe in 2SSeSSBd value after new dBVe|OpDneOt ($2.15 FOiUiOO) • No development on the two service station sites due to location of frontage road • High acquisition COGtS The shortfall can be 8Vm8VVh8t [8dUCSd by increasing the tax increment with higher valued hOugiOg, higher density housing or both. Acqu\GUhOO costs Q]U|d be |OVVB[ if eithe[. or bOth, of the Service stations were excluded from the analysis. We have already assumed that the service station property would not be in a TIF district because no increased value would b8 added. While this project c8Onotbe financially feasible on its ovvn, if it could be combined into G !8[ge[ [8d8V8|Op0BDt project, there may be the opportunity to g8DB[@te tax increment elsewhere to help pay for costs here. Please c8|| with any questions Or for further [8VieVV. 05/0912006 15:09 9524484676 WILSON DEVELOPMENT PAGE 01 Date, May 9, 2006 From: Dan Wilson. I L C) Ji )PMENT SERVICES OFFICE 952.448,4630 800.448.4630 FAX 952.448.4676 WILSONDEV510@AOL.COM 510 N. CHESTNUT STREET, SUITE 200 CHASKA, MINNESOTA 55318 Page I of 4 763-571-1287 Re: Gateway Northeast Property Valuation Analysis Attached is out analysis of the property values for the Proposed Gateway Northeast Prqiect. A more accurate way to treat our $2,052,500 ,or $2,000,000 amount is to use it as a project acquisition and relocation budget amolimt. I am likely off one way or the other on each parcel, but cumulatively it likely establishes the scope or magnitude of this p1toject. No property owner contacts or interior investigations were made. Please let me know if you have any questions or comments. 05/09/2006 15:08 9524484676 WILSON DEVELOPMENT PAGE 03 Sold Land Sales A review of area (University /Central) lurid sales are from $13 to $20 per square foot. Example sales: $13 Fast Food • $14 McDotalds • $14 Credit Umon • $14 Fast Food $16 -$17 Restaurant/Bank $20 Drug • $20 CVS Drug Relocation Digital Sound. They occupy approximately 3,000 square feet in the Borowitz properly. I budgeted $30,000 as they may have sizable disconnect/reconnect expenses. Tae Kwan Do. I wasn't sure if this space: was occupied or not. The cost of moving karate studios is nominal, but they likely would be eligible, f.'or a "payment in lieu' payment of $20,000. It appears to me that all other spaces are vacant. Pending Eminent Domain Legislation The State of Minnesota's pending eminent dormain legislation will impact this project. The question is how badly? The threat of eminent domain arr).a;y not be possible. Hence, this will likely be a negotiated settlement. That may not be all bad, as th(. owner's may recognize as the city is one of a very few qualified buyers. Summary /Conclusion Absent a qualified real estate appraisal, I would recommend that you budget $2,000,000 for property acquisition and relocation. Fridley- Gateway Northeast Study Pa, >e 2 r,f 3 Prepared by Wilson Development Services Fridley HRA Housing Program Summary Cover Page June 1, 2006 HRA Meeting Report Description Loan Application Summary Loan application activity (e.g. mailed out, in process, closed loans) for May, 2006 and year-to-date. Loan Origination Report Loan Servicing Report Remodeling Advisor & Operation Insulation Loan originations for May 2006 and year-to-date. Loan servicing by Community Reinvestment Fund (CRF) for the month of April 2006. Note, that the loan servicing reports are usually available 10 days after month end. Shows the number of field appointments scheduled and completed the Operation Insulation and Remodeling Advisor Services administered by Center for Energy and Environment. H:\—Paul's Doctjrnents\HRA\F1RA Agenda Iterns\2006Uune 1, 2006\Housing Program Cover Page(June06).doc Fridley HRA Performance Report May 25, 2006 Loans 50 3 Loan Volume $625,000 $ 35,820.00 Origination Fees $27,500 $1,650.00 Inspection Fees $7,000 $ 2,080.00 Admin. Subtotal: $34,500 $3,730.00 Loans Loan Volume Origination Fees Inspection Fees 20 1 $200,000 $10,000.00 $11,000 $550.00 $2,800 $0 $13,800 $550.00 6% 6% 11% 5% 5% 4% $589,180.00 $190,000 All Programs $5,000.00 $3,154.53 31% $1,845.47 9 ca✓\ vu, 3