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HRA 09/06/2012 %)C September 6,2012 HRA Meeting Regular Meeting Agenda 7:00 p.m. Call to order Roll call Action Items 1. Approval of expenditures 2. Approval of August 2, 2012 Meeting Minutes 3. Approval of 2012 Tax Levy for Taxes Payable in 2013 4. Public Hearing and Consideration of Resolution Authorizing Sale of 465 Mississippi Street NE 5. Public Hearing and Consideration of Resolution Authorizing Sale of 5745 3rd n Street NE 6. Public Hearing and Consideration of Sale - 6071 University Avenue NE G Informational Items �, Et 14°*- 1. Housing Loan Program Update N � �� ,ypA -(r IG Adjournment ( *1v 6 ) - 7 John - r 69L- IC:\COMMISSION AGENDAS\2012 HRA Commission Agendas\12 09 06.docxK:\COMMISSION AGENDAS\2012 HRA Commission Agendas\12 09 06.docx August,2012 Fridley HRA Accounts Payable Checking Account Register Date Check# Vendor Invoice# Description Code Amount 7/22/2012 29415 Sun Newspapers 16468 Notice of Sale-381 Ironton St NE 501-0000-430-4334 47.03 47.03 7/18/2012 29411 Monroe Moxness Berg 131778 Adminsitration Fees 100-0000-430-4330 910.00 100-0000-430-4330-4606 8,710.04 474-0000-430-4330 762.65 10,382.69 7/23/2012 Passau, Inc. 5366 Miscellaneous Mowing Various 1,220.00 Mowed week of 7/17-18 Tax 100-0000-430-4340 83.88 1,303.88 8/12/2012 Sun Newspapers 16468 TIF Disclosure Legal Publication 100-0000-430-4335 415.80 415.80 8/13/2012 Lake State Realty Services Inc 12060 Appraisal Report for Animal Hosp 5895 University 474-0000-430-4330 2,500.00 2,500.00 8/10/2012 Ehlers 345038 TIF Reporting 100-0000-430-4330 1,803.75 1,803.75 8/6/2012 Passau,Inc. 5445 Miscellaneous Mowing Various 1,220.00 Mowed week of 8/1-8/2 Tax 100-0000-430-4340 83.88 1,303.88 8/19/2012 Sun Newspapers 16468 Legal-Lot Sale 465 Mississippi 501-0000-430-4335 44.55 Legal-Lot Sale 5745 3rd St 468-0000-430-4335 44.55 89.10 8/16/2012 Monroe Moxness Berg 132429 Administration Fees 100-0000-430-4330 390.00 100-0000-430-4330,4607 1,040.00 474-0000-430-4330 585.00 2,015.00 Total August Invoices $ 19,861.13 ( CITY OF FRIDLEY HOUSING AND REDEVELOPMENT AUTHORITY COMMISSION August 2,2012 CALL TO ORDER: Chairperson Commers called the HRA Meeting to order at 7:00 p.m. ROLL CALL: MEMBERS PRESENT: Larry Commers William Holm Stephen Eggert John Meyer MEMBERS ABSENT: Pat Gabel NONMEMBERS PRESENT: Paul Bolin, HRA Assistant Executive Director Becky Kiernan, Accountant William , Jim CasserlyBurns, Development City Manager Consultant Scott Hickok, Community Development Director ACTION ITEMS 1. Approval of Expenditures MOTION by Commissioner Holm to approve the expenditures as presented. Seconded by Commissioner Eggert. UPON VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 2. Approval of June 7, 2012 Meeting Minutes MOTION by Commissioner Holm to approve the minutes as presented. Seconded by Commissioner Eggert. UPON VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MINUTES APPROVED AS AMENDED 3. Public Hearing and Consideration for a Resolution Authorizing Sale of 381 Ironton Street NE MOTION by Commissioner Eggert to open the public hearing. Seconded by Commissioner Holm. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE PUBLIC HEARING OPENED AT 7:03 PM. City of Fridley Housing and Redevelopment Meeting of August 2,2012 2 Paul Bolin, HRA Assistant Executive Director, said that on June 7th the Authority authorized the sale of 561 Hugo Street lot to Boulder Contracting. The property closed on June 11th and by June 21st Boulder had found a buyer for the proposed home. The home will be completed by early September and the new buyer is scheduled to close with Boulder on September 14th Mr. Bolin said that Boulder Contracting has noAsubmitted a lot reservation agreement to build and sell a new home at 381 fronton Street. They have offered$30,000 for the lot, a price justified by comparable sales and the City Assessor. Mr. Bolin said that Boulder Contracting plans to build a 1,020 sq. ft. split level home. The home will have two finished bedrooms and 1 3/4 finished bathrooms and room for additional bedrooms and living space in the lower level. The exterior of the home will utilize a blend of maintenance free materials and will incorporate stone and shakes on the front of the home. It is the same home design that they are building and have successfully sold on Hugo Street. Mr. Bolin said that Boulder Contracting has 23 years of building experience, mostly in the northern suburbs and exurbs. Their contractor's license is current and there are no issues noted in the records of the Department of Labor and Industry. Staff recommends approval of the attached resolution and contract for redevelopment, authorizing the sale of this lot to Boulder Contracting for$30,000. This is a new investment in the neighborhood and the proposed home design is consistent with HRP Guidelines. Mr. Jason Wiehle,Boulder Contracting, said he is excited to build another home and already a list has been started of people who have called who may be interested in building or purchasing this home. They are scheduled to close on August 20 and plan to start this project as soon as possible. The Hugo Street •-■ property will close on September 28 and both projects should be completed sometime in November. Commissioner Meyer noted that there are no architect or engineer names on the plans. Scott Hickok, Community Development Director, said that the City Building Official will not accept plans without a signature. The plans submitted to the Authority are just for review purposes and a signature will be on the final plans. These plans are just for review and not for building. A different set will be submitted for building and the disclaimer will be removed. A signature will be on the permit that they understand they are obligated to follow the laws and they will sign the final plans. Commissioner Eggert added that it would be out of the ordinary for a builder to spend money on signed and sealed documents at this point. They have just provided consensual drawings and after the closing of the property detailed and signed plans will be provided. MOTION by Commissioner Eggert to close the public hearing. Seconded by Commissioner Holm. UPON VOICE VOTE,ALL VOTING AYE, CHAIRP 'SON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE tal IC HEARING CLOSED AT 7:12 PM. MOTION by Commissioner Meyer to Authorizing Sale ofV1 fronton Street NE. Seconded by Commissioner Eggert. 3 UPON VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 4. Approval of Change to Development Agreement—434 Liberty Street City of Fridley Housing and Redevelopment Meeting of August 2,2012 3 Paul Bolin, HRA Assistant Executive Director, said that in June the Authority sold the lot at 434 Liberty ■••• Street NE to Novak-Fleck Builders (NFB), for what was to be a custom built home. This home did not appraise high enough for the banks to finance the mortgage on the property. The home came in with a cost of$225,000 and the appraiser has put a value on the lot and proposed home of only$205,000. Novak's buyer was not willing/able to put the money into the property to cover the gap caused by the appraisal. Mr. Bolin said that Novak-Fleck has found a new buyer and this home will have three bedrooms, three car garage and two bathrooms. The approved plan that was submitted in June had Schedule D attached with the prior house plans, staff would like to replace those plans with the new house plans as discussed. Staff recommends approval of a motion amending the existing development agreement by replacing"Schedule D- House Plans"with the new home design plans. MOTION by Commissioner Meyer to approve the change to the development agreement at 434 Liberty Street. Seconded by Commissioner Holm. UPON VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY 5. Approval of Chronology for Creation of TIF District#21 - GWNE Paul Bolin, HRA Assistant Executive Director, said that the Authority started to make acquisitions of properties along University Avenue in 2006. Demolition of the structures started in 2009 and 2011. n When the demolition began, the time clock started on the Authority ability to create a TIF district; there is a three year window to create the district to recover some of the investment. The three year window date is December 16, 2012. Staff is asking tonight to take the first step to creating a TIF district and move the district forward. This item will go to the City Council on August 20th to ask to set a date for the Public Hearing in October. Mr. Bolin said that last fall the Authority approved staff to hire a broker to market the property on the Authority behalf Over the past few months they have met with three different groups who have serious interest in the properties. Over the next few months staff may bring a purchase agreement from one of these groups. MOTION by Commissioner Holm to approve the Chronology for Creation of TIF District#21 Gateway Northeast (GWNE). Seconded by Commissioner Eggert. UPON VOICE VOTE,ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY Chairperson Commers noted that Dr. Lema i ������ 1- y d have an interest and asked for an appraisal to be done. u. Mr. Bolin said that he did contact Lake State Realty and they have taken a look at the site and should have an appraisal in the next week or so. Before staff would initiate any discussion with Dr. Lemay they would come back to the Authority. Chairperson Commers asked if the addition would have a bearing on anyone who would want to develop on that property. City of Fridley Housing and Redevelopment Meeting of August 2,2012 4 Mr. Bolin said that with the different parties interested he didn't think they needed a vet clinic to move forward with the project. One developer would use the properties south of the vet clinic; another developer would use everything north of the clinic. Chairperson Commers asked if they should consider breaking up the site into separate parcels for development or would staff find someone to develop the entire site. Mr. Bolin said that it has been a while since staff talked to anyone who is interested in the entire parcel. Commissioner Eggert asked if the agent had any advice on the development. Mr. Bolin said it depends on which developer they talk to. Some groups early on wanted to develop the entire site and now groups don't want the entire site. It would be nice for one to develop the entire site but not necessary. Commissioner Eggert asked what would be in the Authority's best interest. Commissioner Holm asked what the legal ramifications were whether we decide to include the vet clinic in the TIF District or not. Jim Casserly,Development Consultant, said that it would be prudent to include it in the district, whether or not we acquire the space. We don't want to amend the district and it would do nothing negative to include it in the district. The district clearly qualifies because the property is not blighted. There is no problem with including it as it meets the criteria because of the other properties. It will be included in TIF ^ District 21. Mr. Bolin said that it is in the Authority's best interest to add the Citgo site. They are still marketing that property for sale. Chairperson Commers asked staff to check out the potential contamination on that site for the Authority. Mr. Hickok said that staff did a thorough analysis for the TOD grant application in hopes of buying that site and it was one of the cleanest staff has ever seen. It could be ready for just about any type of development. On the August 15, 2012 Planning Commission Agenda, a public hearing is scheduled to rezone this property from a C3 to C2 general commercial. Years ago the Saint Williams site was part of this district but when the frontage road was built it severed that piece and does not make sense for that property to be zoned C3. Once the zoning is right, the marketing ability will be very good. In this area we also contemplated moving the road back and offered that as an option in GWNE; to put the buildings closer to the road. If this area were developed by one developer, that road could be private. There is flexibility to move the road back if needed. INFORMATIONAL ITEMS 1. Housing Loan Program Update Paul Bolin, HRA Assistant Executive Director, said that one RLF loan and one Deferred loan closed last month which brings the year to date total to six. There were seven remodeling advisor visits which brings the total to 16 year to date. City of Fridley Housing and Redevelopment Meeting of August 2,2012 5 1. Housing Replacement Program Update Paul Bolin, HRA Assistant Executive Director, said that this is not a good time to purchase properties as the prices are rising. In the last few weeks staff has made offers on homes on Main Street owned by Freddy Mac and they would not come down on the price. Staff also looked at a property on Ironton Street owned by Fanny May and experienced a similar problem. Some houses are not in good shape and the holders think they are worth much more than they are. Mr. Bolin said that these past few years were good times to purchase homes and in the past few months things have changed. The good news is that builders are selling homes and they want to buy more of HRA lots. William Burns, City Manager, asked how many lots the HRA had left to sell. Mr. Bolin answered 10 nice lots and a few others are still in the works. NON-AGENDA UPDATE Paul Bolin,HRA Assistant Executive Director, said that Non-Agenda item#2, Fridley Foundations can be crossed off. • Regarding the Authority asking for monthly building reports from Dr. Burns; this will be included in the Authority packets each month going forward. • The JLT site continues to generate calls from potential interested parties to purchase that site. n Because of this new interest, staff is recommending in September or October to take an initial step to get the North Star TIF District set up and in place. This property will more than likely sell before the end of the year and we are ready to capture any increment that will be generated. • Mr. Fogerty has submitted an application for finances for the Columbia Arena Project. This item will come to the Authority at the September meeting to get that process started. The land use items have been submitted to the city for approval. • The Authority asked for a loan delinquency report and this will also be included to the Authority on a quarterly basis in the future. This is a large portfolio and there are very few serious delinquent or past due accounts. • RER has not much new to report. A question arose about what type of environmental review should be done. The new owner of the site, RER will do an Area-wide Urban Alternative Environmental Review (AUAR) which may put off the closing until that process is complete. Commissioner Holm asked how long the AUAR would take. Mr. Bolin said it is a 3-4 month process. Chairperson Commers said that there is a potential for the JLT site, the Columbia Area is submitting a request for a TIF district, and there is the University Avenue district; what are the thoughts of methodology for giving assistance since all the TIF districts are tied up. n Mr. Bolin said that any assistance the Columbia: get would be to pay as you go; the JLT site would be a generator of increment. • City of Fridley Housing and Redevelopment Meeting of August 2,2012 6 Chairperson Commers asked for clarification that there is no TIF requirement for that JLT property. Mr. Bolin said they do not know who the end user will be and could not rule that out. If needed it would be a pay as you go situation. Chairperson Commers asked if the people looking at developing the University Avenue area wanted to raise TIF assistance. Mr. Bolin said that staff has told everyone that there would be no TIF assistance available to them. Staff is creating a redevelopment district for the Authority to recover some of its expenses. Making land affordable enough to redevelop is the Authority's contribution. Chairperson Commers asked what the institutional and public facilities were on the monthly building report. Dr. Burns said that the institutional is Unity Hospital and the public facilities may have something to do with the Minneapolis Water Works and their training site. Commissioner Meyer announced his resignation from the Housing and Redevelopment Commission. Chairperson Commers thanked Commissioner Meyer for sharing his knowledge and information over the years. The Authority appreciated all he has done for them. He wished him the best in the future. ADJOURNMENT MOTION by Commissioner Eggert to adjourn. Seconded by Commissioner Meyer. UPON VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY AND THE MEETING ADJOURNED AT 7:51 P.M. Respectfully Submitted, Krista Monsrud Recording Secretary ^ z COMMUNITY DEVELOPMENT DEPARTMENT HOUSING AND REDEVELOPMENT AUTHORITY Memorandum DATE: August 20, 2012 TO: William W. Burns, City Manager FROM: Paul Bolin, Assistant Director of HRA Darin Nelson, Finance Director Becky Kiernan, HRA Accountant SUBJECT: Consider HRA Tax Levy for Taxes Payable in 2013 Since 1996, the HRA has utilized a tax levy to help support its housing rehabilitation programs. The levy is equal to .0185% of the taxable market value of all real estate and �(a' personal property. The tax levy will allow the Authority to collect approximately \P� $392,400, based on a city-wide tax market value of$2,121,058,550. In terms of the 1 impact on taxpayers, the levy would cost$23.36 per year for a home valued at$150,000 and $185.00 per year for a commercial property valued at $1,000,000. The revenue$ \V• raised by the levy are directed towards ongoing and future redevelopment priorities. QPN- As you may recall during the 2011 legislative session the Legislature eliminated the Market Value Homestead Credit(MVHC) as a measure to help balance the State budget. In order to still provide property tax relief to residential homestead properties, the Legislature created the Market Value Homestead Exclusion(MVHE). This exclusion exempts 40 percent of a home's first $76,000 in value from being taxed. For homes valued over$76,000, the exemption amount decreases on a graduated scale until the exemption is eliminated at a home valued at approximately$413,800. Essentially, the State created two different market values for residential properties; a taxable market value and an estimated market value. Statutory levy limits for the HRA are computed under state law as a defined percentage of"taxable market value." Beginning with taxes payable in 2013, the Minnesota Department of Revenue's (DOR) interpretation of what is "taxable market value"will reduce values by the amount of the homestead market value exclusion (HMVE). This in turn reduces the revenue-generating capacity of the HRA. r-� The League of Minnesota Cities believes that the Legislature did not intend the new HMVE to have an impact on levy limits. Legislation introduced by the League during C:\Users\Bo]inP\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\RSZIBFBJ\2013 HRA Memo(HRA Tax Levy).docx the 2012 session to clarify these statutes was included in the final omnibus tax bill that .-. was unfortunately vetoed by Gov. Dayton. What effect does the MVHE have on the HRA? The MVHE reduces the tax levy by approximately$29,000. Overall, this year's levy is $41,600 less than the prior year levy due to a combination of a continuing decline in property values and the MVHE restriction. State Statutes require the consent of the City Council,prior to the tax levy becoming effective. The City Council will act on this item on September 10th, As a final note, the HRA tax levy will be certified to the County Auditor on September 14, 2012. Recommendation Staff recommends that the Authority approve the attached resolution at their regular meeting on September 6, 2012. Attachment C:\Users\BolinP\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\RSZIBFBJ\2013 HRA Memo(HRA Tax Levy).docx HRA RESOLUTION NO. 2012 - RESOLUTION ADOPTING A 2012 TAX LEVY COLLECTIBLE IN 2013 BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority"), as follows: Section 1. Recitals. 1.01. The Authority is authorized by Minnesota Statutes Section 469.033 to adopt a levy on all taxable property within its area of operation, which is the City of Fridley, Minnesota (the "City"). 1.02. The Authority is authorized to use the amounts collected by the levy for the purposes of Minnesota Statutes Sections 469.001 to 469.047 (the "General Levy"). Section 2. Findings. 2.01. The Authority hereby finds that it is necessary and in the best interests of the City and the Authority to adopt the General Levy to provide funds necessary to accomplish the goals of the Authority. Section 3. Adoption of General Levy. 3.01. The following sums of money are hereby levied for the current year, collectible in 2013, upon the taxable property of the City for the purposes of the General Levy described in Section 1.02 above: Total General Levy: .0185% of Taxable Market Value Amount: Maximum Allowed by Law • Page 2 —Resolution No. Section 4. Report to City and Filing of Levies. 4.01. The Executive Director of the Authority is hereby instructed to transmit a certified copy of this Resolution to the City Council for its consent to the General Levy. 4.02. After the City Council has consented by resolution to the General Levy, the Executive Director of the Authority is hereby instructed to transmit a certified copy of this Resolution to the County Auditor of Anoka County, Minnesota. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA THIS 6th DAY OF SEPTEMBER, 2012. LAWRENCE R. COMMERS - CHAIRPERSON ATTEST: WILLIAM W. BURNS -HRA DIRECTOR I J ITEM ACTION HRA MEETING OF SEPTEMBER 6 2012 , crri'OF FRIDLEY Date: August 28, 2012 To: William Burns, Executive Director From: Paul Bolin, Asst. Executive _RA Director Subject: Public Hearing - Sale of 465 Mississippi Street NE - HRP Dale -- • representing Nova _a Builders (NFB), submitted a lot reservation ..reement to buil• -nd sell a new home at 465 Mississippi Street. NFB made an offer .f $30,000 for the to a price justified by comparable sales and the City Assessor. } 465 Miss�ss,pp ,St N . -r� iey MN g W[. ¢Y;P ro � � ,ate S 'x ....' -a.a ,. ' --ill* w y Mississippi Street � a*eft 3 i ' xRrx�nxµ - .., x�iaptUI q, s 1 of 4 I * 4 4 -fig s �� F �c earth "� °�`:- 45G�a 10�Y N°B3 � 15, A'ae�-.8G2fl �, i�' � Eyi $5 ', The Authority purchased the foreclosed property in August of 2011, $56,500. The interior of the home had been completely destroyed. In addition to large portions of the floor joists being cut out, every pipe in the home had been broken and all wiring removed. The home was demolished in November of 2011. The property is included in the Authority's HRP TIF District. The Authority will collect the increment generated from the new construction for the next 15 years. Using rough numbers, it is estimated this increment will total $1,200 to $1,500 per year to help defray the Authority's investment. > --lit stem tics ri*iItii .411111b. 111 11ftif Ag ..)01115111111/t11114 = 1an".1a' ._,,..... II 11 ..alts IwJ11;1�ii1111 Il mtil1ixi l 1I1 iiiwfr�.."'_ = t 1111111111111111111111111111111111111/1111111111111111 _ i _ n WINAO NMI W. NM 111111111imminummumni 444.4- IOp01MIYYY +MINIM ■i as .... wr .Am ♦ , MFIwA9R11 +.. .exd„: .....-..... - - IieWlY.1N1®IM M11MtlYeY � ��tlMMa , .: 'mwwnM xewla. Rw'ewws ♦ w._ j,. IYIWYWIWNIr fIMWAIIW YYYI! MMMMM e . wxsru _ = • -._..�_ E a- �. = ;SIP!° R il uI!!i NU■11!7 iz!i 155 sTme FRITINIT 1I't 7A'MIN Over the past 4 months, NFB has had success building and selling on 2 other infill lots in the City. NFB has designed the home to meet the conditions and intent of the Authority's HRP Guidelines. The home will have 3 finished bedrooms and 2 finished bathrooms. A set of plans is attached to this memorandum. Staff recommends approval of the attached resolution authorizing the sale of this lot to Novak-Fleck Builders for $30,000. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2012- A RESOLUTION AUTHORIZING THE SALE OF RESIDENTIAL PROPERTY BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA BE IT RESOLVED by the Board of Commissioners(the"Commissioners")of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota(the "Authority") as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority sell certain residential property (the "Property") described below: PIN: Street Address 14-30-24-24-0002 465 Mississippi St. NE Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted a development program known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Redevelopment Program") pursuant to Minnesota Statutes, Section 469.001 et seq. 2.02. The Authority hereby finds that it has approved and adopted a Housing Replacement District Plan(the "Plan") and created Housing Replacement District No. 1,pursuant to and in accordance with Laws of Minnesota 1995,Chapter 264,Article 5,Sections 44 through 47;Laws of Minnesota 1996,chapter 471, article 7, section 22; Laws of Minnesota 1997, chapter 231, article 10, section 13; Laws of Minnesota 2002, chapter 377, article 7, section 6; Laws of Minnesota 2008,chapter 154, article 9,section 19,and Laws of Minnesota 2010, Chapter 216, Section 42 (collectively"The Act"). 2.03. The Authority hereby finds that it has performed all actions required by Minnesota Statutes for the sale of the Property. 2.04. The Authority hereby finds that the sale of the Property promotes the objectives as outlined in its Redevelopment Program and the Plan. Section 3. Approval of the Sale. 3.01 The sale of the Property is hereby approved for a price of not less than $30,000. } HRA Resolution 2012- Page 2 n Section 4. Authorization for Execution and Delivery. 4.01. The Chairman,the Executive Director and Assistant Executive Director are hereby authorized to execute and deliver any documents necessary to effect the sale of the Property in accordance with the Authority's Housing Replacement Program. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 6th DAY OF SEPTEMBER, 2012. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR .<0. CopyTrltee il 1� I 1 I �1 , , 1 1 R '1,01a 1111111 .� r..� I I 1! I I I"1 I,I II �— I MI __. MINI =w_, I 1 I' �II II 111 ,I' I 1 I I , 11 —ill', 11 , i-a Li Irlb I I 11 ,i _= I Il! 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CONTRACT FOR PRIVATE REDEVELOPMENT By and Between HOUSING AND REDEVELOPMENT AUTHORITY In and For THE CITY OF FRIDLEY, MINNESOTA n And Novak Fleck Builders, Inc. FOR PROPERTY LOCATED AT 465 MISSISSIPPI STREET N.E. This document was drafted by: Housing and Redevelopment Authority in and for the City of Fridley 6431 University Avenue N.E. Fridley, MN 55432 CONTRACT FOR PRIVATE REDEVELOPMENT 2nd COPY (8-29-2012) THIS AGREEMENT, made as of the day of , 2012 by and between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority"), a public body corporate and politic organized under the laws of the State of Minnesota and Novak Fleck Builders, Inc., a corporation organized and existing under the laws of the State of Minnesota (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 et seq. (the "Act"), the redevelopment plan known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Project Area") which plan, as amended, and as it may be amended, is hereinafter referred to as the "Redevelopment Plan" 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 order to achieve the objectives of the Redevelopment Plan and particularly to make specified land in the Project Area and in the Authority's area of operation available for development by private enterprise for and in accordance with the Redevelopment Plan, the Authority has determined to provide substantial aid and assistance to finance public development costs in the Project Area and in the Authority's area of operation; and WHEREAS, the Authority believes that the development and redevelopment of the Project Area pursuant to this Agreement, and fulfillment generally of the terms of this Agreement, are in the vital and best interests of the Authority and the health, safety, morals and welfare of its residents, and in accord with the public purposes and provisions of applicable federal, state and local laws under which the development and redevelopment are being undertaken and assisted; NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 2 \ ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 469.001, et seq. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Authority" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota. "Certificate of Completion" means the certification, in a form substantially similar to the certificate contained in Schedule C attached to and made a part of this Agreement, provided to the Redeveloper,pursuant to Section 4.3 of this Agreement. "City" means the City of Fridley, Minnesota, or its successors or assigns. "Construction Plans" means the plans, specifications, drawings and related documents for the construction of the Minimum Improvements that are required by the City for the issuance of its building permit. The Authority shall approve said Constructions Plans before the City issues any building permits. "County" means the County of Anoka, Minnesota. "Date of Closing" means the date or dates set forth in Section 3.1(b). "Event of Default" means an action by the Redeveloper described in Section 7.1 of this Agreement. "Homeowner" means the person(s) who purchase the Project from the Redeveloper. "Minimum Improvements" means the improvements to be constructed by the Redeveloper on the Redevelopment Property as specified in the Construction Plans approved by the Authority and attached to Exhibit D. "Party" means a party to this Agreement. "Permitted Encumbrances" means those encumbrances as defined in Section 8.7 of this Agreement. 3 "Project" means the Redevelopment Property and the Minimum Improvements. "Purchase Price" means the sum of Thirty Thousand and No/100 Dollars ($30,000), payable on the Date of Closing. "Redeveloper" means Novak Fleck Builders, Inc., a Minnesota corporation, and its permitted successors or assigns. "Redevelopment Plan" means the Modified Redevelopment Plan adopted by the Authority in connection with its Redevelopment Project No. 1. "Redevelopment Property" means the real property upon which the Minimum Improvements are to be constructed, which real property is described on Schedule A attached to and made a part of this Agreement. "Redevelopment Property Deed" means a quit claim deed, substantially in the form of the deed in Schedule B attached to and made a part of this Agreement, used to convey the Redevelopment Property from the Authority to the Redeveloper. "Sales Price" means an amount equal to or greater than $140,000 and which is to be used on the certificate of real estate value when the Project is conveyed to the Homeowner. "State" means the State of Minnesota. "Unavoidable Delays" means delays which are the direct result of strikes or shortages of material; delays which are the direct result of casualties to the Minimum Improvements, the Redevelopment Property or the equipment used to construct the Minimum Improvements; delays which are the direct result of governmental actions (except that the City may not create an Unavoidable Delay by virtue of its own action); delays which are the direct result Gf judicial action commenced by third parties; or delays which are the direct result of citizen opposition or action affecting this Agreement or adverse weather conditions or acts of God. ARTICLE II Representations and Warranties Section 2.1. Representations by the Authority. The Authority represents and warrants that: (a) The Authority is a public body duly organized and existing under the laws of the State. Under the provisions of the Act, the Authority has the power to enter into this Agreement and carry out its obligations hereunder. 4 (b) The Authority will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Redeveloper and will cooperate with the efforts of Redeveloper to secure the granting of any permit, license, or other approval required to allow the construction of the Minimum Improvements; provided, however, that nothing contained in this Section 2.1(b) shall be construed to limit in any way the reasonable and legitimate exercise of the Authority's discretion considering any submittal or application. (c) The Authority makes no representation, guarantee, or warranty, either express or implied, and hereby assumes no responsibility or liability as to the Redevelopment Property or its condition (regarding soils, pollutants, hazardous wastes or otherwise). Section 2.2. Representations and Warranties by the Redeveloper. The Redeveloper represents and warrants that: (a) The Redeveloper will purchase the Redevelopment Property from the Authority pursuant to Article III hereof and in the event the Redevelopment Property is conveyed to the Redeveloper, then the Redeveloper will construct the Minimum Improvements in accordance with the terms of this Agreement, the Redevelopment Program and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). ✓'ftN (b) The Redeveloper is a corporation organized under the laws of the State of Minnesota, is authorized to transact business in the State, and has duly authorized the execution of this Agreement and the performance of its obligations hereunder. (c) The financing arrangements which the Redeveloper has obtained or will obtain to finance construction of the Minimum Improvements will be sufficient to enable the Redeveloper to successfully complete the Minimum Improvements as contemplated in this Agreement. (b) The Redeveloper shall prepare the Construction Plans and construct the Minimum Improvements in accordance with all of the appropriate building and zoning codes, as well as House Plans & Materials noted on said plans, that are shown in Exhibit D. (c) The Redeveloper shall have the Construction Plans prepared by an architectural designer or a licensed architect. (f) The Redeveloper shall sell the Project to the Homeowner for no less than the Sales Price. 5 ARTICLE III Conveyance of Property Section 3.1. Conveyance of the Redevelopment Property. (a) Title. The Authority shall, subject to the Permitted Encumbrances, convey marketable title to and possession of the Redevelopment Property to the Redeveloper under a quit claim deed in the form of the Redevelopment Property Deed contained in Schedule B of this Agreement. The conveyance of title to the Redevelopment Property pursuant to the Redevelopment Property Deed and the Redeveloper's use of the Redevelopment Property shall be subject to all of the conditions, covenants, restrictions and limitations imposed by this Agreement and the Redevelopment Property Deed. At its expense, the Redeveloper shall obtain and pay for any title policy and endorsements it deems necessary. The Authority agrees to obtain and shall deliver to the Redeveloper a commitment for an owner's title insurance policy, in the ALTA form requested by the Redeveloper, issued by a title insurance company acceptable to the Authority and Redeveloper, naming the Redeveloper as the proposed owner-insured of the Redevelopment Property in the amount of the Purchase Price (the "Commitment"). The Commitment shall have a current date as its effective date and shall, subject to the Permitted Encumbrances, commit to insure marketable title in the Redeveloper, 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. The Commitment shall set forth all levied real estate and special assessments relating to the Redevelopment Property. Said commitment shall have attached copies of all instruments of record, which create any easements or restrictions, which are referred to in its Schedule B. The Redeveloper will be allowed 20 days after receipt of the Commitment to make an examination thereof and to make any objections to the marketability of the title to Redevelopment Property, other than the Permitted Encumbrances, said objections to be made by written notice or to be deemed waived. If the title to the Redevelopment Property, as evidenced by the Commitment, together with any appropriate and available endorsements, is not good and marketable of record (subject only to the Permitted Encumbrances) in the Authority and is not made so by the Date of Closing, Redeveloper may either: (i) Terminate this Agreement by giving written notice to the Authority in which event this Agreement shall become null and void and neither Party shall have any further rights or obligations hereunder; or (ii) Elect to accept the title in its marketable condition by giving written notice to the Authority, in which event the Redeveloper may hold back adequate funds from 6 ,.1 ■,■ the portion of the Purchase Price payable at the closing to cure the defects and apply said holdback funds of the cost of curing such defects, including attorneys' fees, and pay the unexpended balance to the Authority. (If the amount of said holdback cannot be mutually agreed to by the Authority and the Redeveloper, the issuer of the Commitment shall determine the amount of said holdback.) (d) Time of Conveyance. The Authority shall execute and deliver to the Redeveloper the Redevelopment Property Deed for the Redevelopment Property on or before October 1, 2012 or on such date as the Authority and the Redeveloper shall mutually agree in writing (the "Date of Closing"). The Redeveloper shall take possession of the Redevelopment Property on the Date of Closing. (c) Price and Payment. The Authority agrees to sell and the Redeveloper agrees to purchase the Redevelopment Property for the Purchase Price. Unless otherwise mutually agreed by the Authority and the Redeveloper, the execution and delivery of all closing documents and the payment of the Purchase Price shall be made either at the principal offices of the Authority or offices of a licensed title company agreed upon by the parties. (d) Taxes and Special Assessments. 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 prorated as of the Date of Closing based upon each Party's 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. On or prior to the Date of Closing, the Authority shall pay all pending or levied special assessments. (e) Survey. The Authority will not provide a survey. (e) Inspection. At the Redeveloper's expense, the Redeveloper, its agents and designees, are hereby granted the right at any time or times after the date hereof to inspect, analyze, and test the Redevelopment Property. The Redeveloper shall hold the Authority and the City harmless from any liability resulting solely from the entering upon the Redevelopment Property or the performing of any of the tests or inspections referred to in this Section by the Redeveloper, its agents or designees. (f) Permits and Fees. The Redeveloper shall be responsible for all permits and fees including,but not limited to building, electrical, mechanical, plumbing, sewer, water, and park dedication fees. Section 3.2. Conditions Precedent to Conveyance. The obligations of the Authority to convey the Redevelopment Property to the Redeveloper shall be subject to the following conditions precedent: 7 (a) On the Date of Closing, the Redeveloper shall be in material compliance with all of the terms and provisions of this Agreement; (b) The Redeveloper shall have provided evidence satisfactory to the Authority that the Redeveloper is capable of financing or has obtained financing or a commitment for financing sufficient to finance the construction of the Minimum Improvements. The Redeveloper will be deemed to have provided adequate evidence of such financial commitment and ability if the Redeveloper provides evidence satisfactory to the Authority of a mortgage commitment; (c) The Authority and the City shall have approved the Construction Plans; (d) The Redeveloper shall have received the appropriate permits for the construction of the Minimum Improvements; ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements. The Redeveloper agrees that it will construct the Minimum Improvements on the Redevelopment Property in accordance with this Agreement, the Housing Design and Site Development Criteria and the Construction Plans approved by the City and the Authority and will maintain,preserve and keep the Minimum Improvements or cause the Minimum Improvements to be in good repair and condition until sale of the Project to the Homeowner. Subject to Unavoidable Delays, the Redeveloper shall commence construction of the Minimum Improvements on or before November 1, 2012. Section 4.2. Completion of Construction. (a) Subject to Unavoidable Delays, the Redeveloper shall have substantially completed the construction of the Minimum Improvements by March 1, 2013. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property shall be in conformity with the Construction Plans as submitted by the Redeveloper and approved by the City and Authority. (b) The Redeveloper agrees for itself, its successors and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, and the Redevelopment Property Deed shall reference the covenants contained in this Section 4.2 and in Section 7.3 of this Agreement, that the Redeveloper, shall promptly begin and diligently prosecute to completion the redevelopment of the Redevelopment Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be completed within the period specified in this Section 4.2. 8 Section 4.3. Certificate of Completion. (a) Promptly after completion of the Minimum Improvements in accordance with the provisions of this Agreement relating to the obligations of the Redeveloper to construct such improvements (including the date for completion thereof), the Authority will furnish the Redeveloper with a Certificate of Completion. 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 obligations of the Redeveloper to construct the Minimum Improvements and the date for the completion thereof. (b) If the Authority shall refuse or fail to provide the Certificate of Completion in accordance with the provisions of this Section 4.3 the Authority shall, within twenty (20) days after written request by the Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in what respects the Redeveloper has failed to complete the Minimum Improvements in accordance with the provisions of this Agreement, or is otherwise in default, and what measures or acts will be necessary, in the opinion of the Authority, for the Redeveloper to take or perform in order to obtain a Certificate of Completion. (c) The construction of the Minimum Improvements shall be deemed to be completed when the City has issued its Certificate of Occupancy; provided that the Authority shall retain the right to withhold the Certificate of Completion in the event that the City's Certificate of Occupancy is issued with conditions, and to continue to withhold the Certificate of Completion until such conditions are fully satisfied. ARTICLE V Real Property Taxes and Insurance Section 5.1. Real Property Taxes. Prior to the Authority issuing its Certificate of Completion, the Redeveloper shall pay when due,prior to the attachment of penalty, all real property taxes payable with respect to the Redevelopment Property in the years subsequent to the delivery of the Redevelopment Property Deed. Section 5.2. Insurance. (a) The Redeveloper will provide and maintain at all times during the process of constructing the Minimum Improvements and, from time to time at the request of the Authority, furnish the Authority with proof of payment of premiums on: 9 (i) builder's risk insurance, written on the so-called "Builder's Risk -- Completed Value Basis," in an amount equal to one hundred percent (100%) of the insurable value of the Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so-called "all risk" form of policy. The interest of the Authority shall be protected in accordance with a clause in form and content reasonably satisfactory to the Authority; (ii) comprehensive general liability insurance together with an Owner's Contractor's Policy with limits against bodily injury and property damage of not less than $2,000,000 for each occurrence (to accomplish the above- required limits, an umbrella excess liability policy may be used); and (iii) workers' compensation insurance, with statutory coverage. (b) All insurance required in this Article V shall be taken out and maintained in responsible insurance companies selected by the Redeveloper, which are authorized under the laws of the State to assume the risks covered thereby. The Redeveloper will deposit annually with the Authority policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V, each policy shall contain a provision that the insurer shall not cancel nor modify it without giving written notice to the Redeveloper and the Authority at least thirty(30) days before the cancellation or modification becomes effective. ARTICLE VI 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, 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 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 parties in control of the Redeveloper or the degree of their control is for practical purposes a transfer or disposition of the property then owned by the Redeveloper, the qualifications and identity of the Redeveloper are of particular concern to the Authority. 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 further willing to accept and rely on the obligations of the 10 �-. 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 Assignment of Agreement. Also, for the foregoing reasons the Redeveloper represents and agrees that prior to the earlier of the issuance of the Certificate of Completion or the Termination Date the Redeveloper shall comply with the following: Except for the purpose of obtaining financing necessary to enable the Redeveloper or any successor in interest to the Redevelopment Property, or any part thereof, to perform its obligations with respect to constructing the Minimum Improvements under this Agreement, 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, lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Redevelopment Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the Authority. Notwithstanding the foregoing, the Redeveloper may transfer the Redevelopment Property to the Homeowner. Section 6.3. Release and Indemnification Covenants. (a) The Redeveloper covenants and agrees that the City and the Authority and the governing body members, officers, agents, servants and employees thereof shall not be liable for and agrees to indemnify and hold harmless the City and the Authority and the governing body members, officers, agents, servants and employees thereof against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements, except for any loss resulting from negligent, willful or wanton misconduct of any such parties, and provided that the claim therefore is based upon the acts of the Redeveloper or of others acting on the behalf or under the direction or control of the Redeveloper. (b) Except for any negligent or willful misrepresentation or any negligent, willful or wanton misconduct of the following named parties, the Redeveloper agrees to protect and defend the City, the Authority and the governing body members, officers, agents, servants and employees thereof, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Minimum Improvements, except for the use of eminent domain if exercised by the Authority to acquire the Redevelopment Property, and provided that the claim therefore is based upon the acts of the Redeveloper or of others acting on the behalf or under the direction or control of the Redeveloper. (c) The City and the Authority and the governing body members, officers, agents, servants and employees thereof shall not be liable for any damage or injury to the persons or 11 property of the Redeveloper or its officers, agents, servants or employees or any other person who may be about the Redevelopment Property or Minimum Improvements due to any act of negligence of any person, other than the negligence and misconduct of the City or Authority employees or those employed or engaged by the City or Authority. (d) 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. (e) Nothing in this Section or this Agreement is intended to waive any municipal liability limitations contained in Minnesota Statutes, particularly Chapter 466. ARTICLE VII Events of Default Section 7.1. Events of Default Defined. Subject to Unavoidable Delays, the following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement (unless the context otherwise provides), any one or more of the following events: (a) Failure by the Redeveloper to pay when due all real property taxes assessed against the Redevelopment Property. (b) Failure by the Redeveloper to commence or complete construction of the Minimum Improvements pursuant to the terms, conditions and limitations of Article IV of this Agreement. (c) Failure by the Redeveloper to substantially observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (d) The Redeveloper shall: (i) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the United States Bankruptcy Code or under any similar federal or state law; or (ii) make an assignment for the benefit of its creditors; or (iii) admit in writing its inability to pay its debts generally as they become due; or 12 (iv) be adjudicated as bankrupt or insolvent; or if a petition or answer proposing the adjudication of the Redeveloper as bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or State law shall be filed in any court and such petition or answer shall not be discharged or denied within ninety (90) days after the filing thereof; or a receiver, trustee or liquidator of the Redeveloper or of the Redevelopment Property, or part thereof, shall be appointed in any proceeding brought against the Redeveloper and shall not be discharged within ninety (90) days after such appointment, or if the Redeveloper shall consent to or acquiesce in such appointment. Section 7.2. Remedies on Default. Whenever any Event of Default referred to in Section 7.1 of this Agreement occurs, the Authority may take any one or more of the following actions after providing thirty days' written notice to the Redeveloper of the Event of Default, but only if the Event of Default has not been cured within said thirty days, or if the Event of Default is by its nature incurable within said thirty day period, and the Redeveloper fails to provide the Authority with written assurances, deemed satisfactory in the reasonable discretion of the Authority, that the Event of Default will be cured as soon as reasonably possible: (a) Suspend its performance under this Agreement until it receives assurances from the Redeveloper, deemed adequate by the Authority, that the Redeveloper will cure its default and continue its performance under this Agreement. ■•\ (b) Terminate this Agreement. (c) Withhold the 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 of the Redeveloper under this Agreement. Section 7.3. Re-vesting Title in the Authority Upon Happening of Event Subsequent to Conveyance to the Redeveloper. In the event that subsequent to conveyance of the Redevelopment Property to the Redeveloper and prior to the receipt by the Redeveloper of the Certificate of Completion: (a) subject to Unavoidable Delays, the Redeveloper fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the commencement and 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 thirty (30) days after written demand from the Authority to the Redeveloper to do so; or 13 (b) the Redeveloper fails to pay real estate taxes or assessments on the Redevelopment Property or any part thereof when due, or creates, suffers, assumes, or agrees to any encumbrance or lien on the Redevelopment Property which is unauthorized by this Agreement or shall suffer any levy or attachment to be made, or any materialmen's or mechanic's lien, or any other unauthorized encumbrance or lien to attach, and such taxes or assessments shall not have been paid, or the encumbrance or lien removed or discharged or provision reasonably satisfactory to the Authority made for such payment, removal, or discharge, within thirty (30) days after written demand by the Authority to do so; provided, that if the Redeveloper shall first notify the Authority of its intention to do so, it may in good faith contest any mechanic's or other lien filed or established and in such event the Authority shall permit such mechanic's or other lien to remain undischarged and unsatisfied during the period of such contest and any appeal, but only if the Redeveloper provides the Authority with a bank letter of credit or other security in the amount of the lien, in a form satisfactory to the Authority pursuant to which the bank or other obligor will pay to the Authority the amount of any lien in the event that the lien is finally determined to be valid. During the course of such contest the Redeveloper shall keep the Authority informed respecting the status of such defense; or (c) there is, in violation of this Agreement, any transfer of the Redevelopment Property or any part thereof, or any change in the ownership or distribution thereof of the Redeveloper, or with respect to the identity of the parties in control of the Redeveloper or the degree thereof, and such violation shall not be cured within thirty (30) days after written demand by the Authority to the Redeveloper; /-. Then the Authority shall have the right to re-enter and take possession of the Redevelopment Property and to terminate (and revest in the Authority) the estate conveyed by the Redevelopment Property Deed to the Redeveloper, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Redevelopment Property to the Redeveloper shall be made upon, and that the Redevelopment Property Deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Redeveloper and failure on the part of the Redeveloper to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the Authority at its option may declare a termination in favor of the Authority of the title, and of all the rights and interests in and to the Redevelopment Property conveyed to the Redeveloper, and that such title and all rights and interests of the Redeveloper, and any assigns or successors in interest to and in the Redevelopment Property, shall revert to the Authority, but only if the events stated in Section 7.3(a)-(c) have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this Section 7.3, the Authority shall have no right to re-enter or retake title to and possession of any part of the Redevelopment Property for which a Certificate of Completion has been issued. 14 �-. Section 7.4. Resale of Reacquired Property; Disposition of Proceeds. Upon the reverting in the Authority of title to any parcel of the Redevelopment Property or any part thereof as provided in Section 7.3, the Authority shall have no further responsibility to the Redeveloper hereunder with respect to that or any subsequent parcel and may sell or otherwise devote said parcels to such other uses as the Authority shall in its sole discretion determine, without reimbursement of any sums paid by the Redeveloper to the Authority under this Agreement. Section 7.5. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Authority or Redeveloper 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 or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Authority or the Redeveloper to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VII. Section 7.6. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by either 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. • f'■ Section 7.7. Agreement to Pay Attorney's Fees and Expenses. Whenever any Event of Default occurs and the Authority or the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Redeveloper under this Agreement, the Redeveloper agrees that it shall, within ten(10) days of written demand by the Authority,pay to the Authority the reasonable fees of such attorneys and such other expenses so incurred by the Authority or the City. ARTICLE VIII Mortgage Financing Section 8.1. Limitation Upon Encumbrances of Property. Prior to the substantial completion of the Minimum Improvements, as certified by the Authority, neither the Redeveloper nor any successor in interest to the Redevelopment Property or any part thereof shall engage in any financing or any other transaction creating any mortgage or other encumbrance or lien upon the Redevelopment Property, other than the Permitted Encumbrances, whether by express agreement or operation of law, or suffer any encumbrance or lien to be made on or attach to the Redevelopment Property, other than Permitted Encumbrances, except: 15 • (a) For the purposes of obtaining funds only to the extent necessary for financing of the Minimum Improvements including, but not limited to, labor and materials, equipment, professional fees, real estate taxes, construction interest, organizational and other indirect costs of development, costs of constructing the Minimum Improvements, an allowance for contingencies, acquisition cost of the Redevelopment Property, costs of originating the Mortgage and customary financing costs. (b) Only upon the prior written approval of the Authority in accordance with Sections 8.1 and 8.2. The Authority shall not approve any Mortgage, which does not contain terms that conform to the terms of Section 8.5, except as provided in Section 8.6 of this Agreement. Section 8.2 Approval of Mortgage. The Authority shall approve a Mortgage if: (a) The Authority first receives a copy of all Mortgage documents. (b) The Mortgage loans, together with other funds available to the Redeveloper, will, in the reasonable judgment of the Authority, be sufficient to acquire the Redevelopment Property and construct the Minimum Improvements. (g) The Authority is not entitled under Section 7.2 to exercise any of the remedies f` set forth therein as a result of an Event of Default. (h) The Authority determines that the terms of the Mortgage conform to the terms of Section 8.5. However, the approval of a Mortgage by the Authority shall not be unreasonably withheld, Any Mortgage, which is subordinated to the rights of the Authority under this Agreement, may be granted in all or any part of the Redevelopment Property without the approval of the Authority. Section 8.3 Notice of Default; Copy to Mortgagee. Whenever the Authority shall deliver any notice or demand to the Redeveloper with respect to any breach or default by the Redeveloper in its obligations or covenants under this Agreement, the Authority shall at the same time forward a copy of such notice or demand to each holder of any Mortgage authorized by this Agreement at the last address of such holder shown in the records of the Authority. Section 8.4 Mortgagee's Option to Cure Defaults. After any breach or default referred to in Section 8.3, each such holder of a Mortgage shall (insofar as the rights of the Authority are concerned) have the right, at its option, to cure or remedy such breach or default (or such breach or default to the extent that it relates to the part of the Redevelopment Property 16 /„N covered by its Mortgage) and to add the cost thereof to the Mortgage debt and the lien of its Mortgage; provided, however, that if the breach or default is with respect to construction of the Minimum Improvements, nothing contained in this Section or any other Section of this Agreement shall be deemed to require such holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the construction or completion of the Minimum Improvements, provided that any such holder of a Mortgage shall not devote the Redevelopment Property to a use inconsistent with the Redevelopment Plan or this Agreement without the written consent of the Authority. Section 8.5 Authority's Option to Cure Default on Mortgage. Any Mortgage, unless such requirement is waived by the Authority, executed by the Redeveloper with respect to the Redevelopment Property or any improvements thereon shall provide that, in the event that the Redeveloper is in default under any Mortgage authorized pursuant to this Article VIII, the holder of the Mortgage shall notify the Authority in writing of: (a) The fact of the default. (b) The elements of the default. (c) The actions required to cure the default. If the default is an "Event of Default" under such Mortgage, which shall entitle such holder to foreclose upon the Redevelopment Property, the Minimum Improvements or any portion thereof, and any applicable grace periods have expired, the Authority shall have, and each. Mortgage executed by the Redeveloper with respect to the Redevelopment Property or any improvements thereon shall provide that the Authority shall have such an opportunity to cure the "Event of Default" within such reasonable time period as such holder shall deem appropriate. Section 8.6 Subordination and Modification for the Benefit of Mortgagees. In order to facilitate the obtaining of financing for the construction of the Minimum Improvements, the Authority agrees that it shall agree to any reasonable modification of this Article VIII or waiver of its rights hereunder to accommodate the interests of a holder of a Mortgage, provided, however, that the Authority determines, in its reasonable judgment, that any such modification(s) will adequately protect the legitimate interest and security of the Authority with respect to the Redevelopment Property. Section 8.7 Permitted Encumbrances. The following shall be permitted encumbrances on the title to the Redevelopment Property: (a) Such encumbrances as are mutually agreed to in writing by the Authority and the Redeveloper. 17 (b) Governmental regulations, if any, affecting the use and occupancy of the Redevelopment Property and Minimum Improvements. (c) Zoning laws of the City, County and State. (d) All rights in public highways upon the land. Reservations to the State, in trust for the tax districts concerned, of minerals and mineral rights in those portions of the Redevelopment Property the title to which may have at any time heretofore been forfeited to the State for nonpayment of real estate taxes. (e) The lien of unpaid special assessments, if any, not presently payable but to be paid as a part of the annual taxes to become due. (f)The lien of unpaid real estate taxes, if any, not presently payable but to be paid as a part of the annual taxes to become due. (g) A Mortgage as permitted under Section 8.2 ARTICLE IX Additional Provisions Section 9.1. Conflict of Interest; Authority Representatives Not Individually Liable. No member, official, or employee of the Authority shall have any personal interest, direct or indirect, in this Agreement,nor shall any such member, official, or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is, directly or indirectly, interested. No member, official, or employee of the Authority shall be personally liable to the Redeveloper, or any successor in interest, in the event of any default or breach by the Authority or for any amount which may become due to the Redeveloper or successor or on any obligations under the terms of this Agreement, except in the case of willful misconduct. Section 9.2. Equal Employment Opportunity. The Redeveloper agrees that during the construction of the Minimum Improvements provided for in this Agreement that it will comply with all applicable equal employment opportunity and non-discrimination laws, ordinances and regulations. Section 9.3. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Redevelopment Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. 18 Section 9.4. Titles of Articles and Sections. Any titles of the several parts, articles, and sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 9.5. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is (1) dispatched by registered or certified mail, postage prepaid, return receipt requested, (2) transmitted by facsimile, (3) delivered by a recognized overnight courier or(4) delivered personally; and (a) in the case of the Redeveloper, is addressed to or delivered personally to the Redeveloper at 8857 Zealand Ave. North, Brooklyn Park, MN 55445 : (b) in the case of the Authority, is addressed to or delivered personally to the Housing and Redevelopment Authority in and for the City of Fridley at 6431 University Avenue Northeast, Fridley, Minnesota, 55432, Attention: Assistant Executive Director; or at such other address with respect to either party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 9.6. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 9.7 Termination. This Agreement shall terminate upon the Authority issuing its Certificate of Completion or in accordance with the provisions of Article VIII and the discharge of all of the Authority's and Redeveloper's other respective obligations hereunder, but no such termination shall terminate any indemnification or other rights or remedies arising hereunder due to any Event of Default which occurred and was continuing prior to such 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 in its name and behalf on or as of the date first above written. 19 Dated: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By Its Chairperson And by Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) On this day of , 20 before me, a Notary Public, personally appeared Lawrence R. Commers and William W. Burns to me personally known and who by me duly sworn did say that they are the Chairperson and Executive Director, respectively, of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a public body corporate and politic organized under the laws of the State of Minnesota, and acknowledged the foregoing instrument on behalf of said Authority. Notary Public My Commission Expires: Authority Signature Page -- Redevelopment Contract 20 r, Dated: Novak Fleck Builders, Inc. By Its STATE OF MINNESOTA ) ) ss. COUNTY OF ) On this day of , 20 before me, a Notary Public, personally appeared to me personally known and who by me duly sworn did say that s/he is the of Novak Fleck Builders, Inc.., a Minnesota corporation, and acknowledged the foregoing instrument on behalf of said corporation. Notary Public My Commission Expires: Redeveloper Signature Page -- Contract for Private Redevelopment 21 SCHEDULE A DESCRIPTION OF REDEVELOPMENT PROPERTY Address: 465 Mississippi Street PIN: 14-30-24-24-0002 Legal: LOT 2 BLK 2 RICE CREEK TERRACE PLAT 1, SUBJ TO EASE OF REC r-� 22 SCHEDULE B REDEVELOPMENT PROPERTY DEED STATE DEED TAX DUE HEREUNDER$ 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 under the laws of the State of Minnesota(the "Grantor"), and Novak Fleck Builders, Inc., a corporation organized under the laws of the State of Minnesota (the "Grantee"). WITNESSETH, that Grantor, in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration the receipt whereof 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: LOT 2 BLK 2 RICE CREEK TERRACE PLAT 1, SUBJECT TO EASEMENTS OF RECORD, ANOKA COUNTY, MINNESOTA. PIN: 14-30-24-24-0002 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 Novak Fleck Builders, Inc., dated , 20 (the "Contract") and (b) all matters of record. Grantor covenants and represents that: Grantee has committed to construct certain improvements pursuant to the Contract and Grantor has a right of re-entry in accordance with Sections 4.2 and 7.3 respectively of the Contract. Title is conveyed hereby subject to the following conditions subsequent: In the event that Grantee defaults on its obligations in the Contract and fails to properly cure said default, Grantor may declare a termination of all right, title and interest conveyed herein and all right, title and interest in the premises described above in this deed reverts to Grantor. Upon performance of Grantee's obligations in the Contract, including completion of the improvements, the release of the right of re-entry and reverter shall be evidenced by the recording of the Certificate of Completion and Release of Forfeiture attached as Exhibit 1 to this deed. The Grantor certifies that the Grantor does not know of any wells on described real property. 23 IN WITNESS WHEREOF, the Grantor has caused this deed to be duly executed in its behalf by its Chairperson and its Executive Director the day and year written above. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By Its Chairperson And by Its Executive Director STATE OF MINNESOTA ) ss. COUNTY OF ANOKA ) On this day of , 20 before me, a Notary Public, personally appeared and to me personally known and who by me duly sworn did say that they are the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a body corporate and politic under the laws of the State of Minnesota, and acknowledged the foregoing instrument on behalf of said Authority. Notary Public My Commission Expires: Property Tax Statements should be sent to: 24 SCHEDULE C CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE WHEREAS, the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a body corporate and politic under the laws of the State of Minnesota (the "Grantor"), by a Deed recorded in the Office of the County Recorder and/or the Registrar of Titles in and for the County of Anoka and State of Minnesota, as Deed Document Number(s) and , respectively, has conveyed to Novak Fleck Builders, Inc., a Minnesota corporation organized under the laws of the State of Minnesota (the "Grantee"), the following described land in County of Anoka and State of Minnesota, to-wit: LOT 2 BLK 2 RICE CREEK TERRACE PLAT 1, SUBJECT TO EASEMENTS OF RECORD, ANOKA COUNTY, MINNESOTA. PIN: 14-30-24-24-0002 WHEREAS, said Deed contained certain covenants and restrictions, the breach of which by Grantee, its successors and assigns, would result in a forfeiture and right of re-entry by Grantor, its successors and assigns, said covenants and restrictions being set forth in said Deed; and WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Grantor 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 Grantee have been completed and the above covenants and conditions in said Deed have been performed by the Grantee therein and that the provisions for forfeiture of title and right to re-entry for breach of condition subsequent by the Grantor therein is hereby released absolutely and forever insofar as it applies to the land described herein, and the County Recorder and/or the Registrar of Titles in and for 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 said Deed, the breach of which would result in a forfeiture and right of re-entry. Dated: , 20 . 25 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By Its Chairperson And by Its Executive Director STATE OF MINNESOTA ) ss. COUNTY OF ANOKA ) On this day of , 20 before me, a Notary Public, personally appeared and to me personally known who by me duly sworn, did say that they are the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a body corporate and politic under the laws of the State of Minnesota, and acknowledged the foregoing instrument on behalf of said Authority. 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Executive HRA Director Subject: Public Hearing - Sale of 5745 3rd Street NE - HRP/Gateway West Home Detail Builders has submitted a lot reservation agreement to build a new home on the lot located at 5745 3rd Street. The builder has custom designed the home for, z. solA and has an agreement with, a specific buyer. This is not being constructed !�i' speculatively. • z t a , d St�E.Fud ey MN "; O-I � " d i yu e"<d.�' r,.`;� "-"a. ..< ,. uu ,a i rd s.'a ..< .t .• ., Home Detail plans to build an 1,194 finished square foot two-level home. The home will have 2 finished bedrooms and 2 finished bathrooms. The exterior of the home will utilize an blend of maintenance free materials and will incorporate shakes and stone on ti % the frot of the home. The home is designed to blend in with the pre-existing homes `� found in the Gateway West project area. 2 � n \,'41 /4) )-/ 7$ S L Home Detail Builders is comprised of Jeff and Luke Magdic. Jeff Magdic was the builder of the 7 homes that currently make up the Gateway West project area. Home Detail Builders has many years of building experience, mostly in the northern suburbs and exurbs (Fridley, Blaine, Hugo & St. Francis). Their contractor's license is current and there are no issues noted in the records of the Department of Labor and Industry. Staff is hoping that the new construction on this highly visible corridor will generate more interest in the other 8 remaining lots. Staff recommends approval of the attached resolution and ct f N edevelopment, authorizing the sale of this lot to Home Detail Builders r $20,000. t"'"'■ I . . 6 -I ill . m r! ... m < 1 . i> ---1 ... z .. „.. 4 ... . 4 1 ....... .. ... ., . ____......_ ......_.........._____.... 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' RRfi:[.EY,tit � I,�. 1 ^ /1. ■ ■ r. 1 tiVnii Cal.,4,09 zs moot_ - nINv-1 N O V0N' wr ar w ,PSr T. a ; a I a�.tiy-- e - 5 , _.... _._._._to 10 ; i 14 le CI _ �'.e ea .r ... ,4 1 ` j 4i.rr -:4 0 J 4 4 Vt I °. 0 a y' A/ " 3> a i II it 2'Y 0 1;irui ii 7 fI F. i � t' 6 9'tL'luewyoelib 100 Ord 60 ZZ:0 I.Z l OZ`6Z lsnBnV <woo•stu irelapwoilAw.>pvlea$wot,3 t'''` /`N HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY COUNTY OF ANOKA STATE OF MINNESOTA HRA RESOLUTION NO. 2012- A RESOLUTION AUTHORIZING THE SALE OF RESIDENTIAL PROPERTY BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA BE IT RESOLVED by the Board of Commissioners(the"Commissioners")of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota(the "Authority") as follows: Section 1. Recitals. 1.01. It has been proposed that the Authority sell certain residential property (the "Property") described below: PIN: Street Address 23-30-24-23-0158 5745 3rd St. NE Section 2. Findings. 2.01. The Authority hereby finds that it has approved and adopted its Redevelopment Plan for its Redevelopment Project No. 1 (the"Redevelopment Program")pursuant to Minnesota Statutes,Section 469.001 et seq. 2.02. The Authority hereby finds that it has approved and adopted TIF District No. 18,Gateway West Project (the "Plan"), pursuant to and in accordance with Minnesota Statutes, Sections 469.174 to 469.1799 (collectively"The Act"). 2.03. The Authority hereby finds that it has performed all actions required by Minnesota Statutes for the sale of the Property. 2.04. The Authority hereby finds that the sale of the Property promotes the objectives as outlined in its Redevelopment Program and the Plan. Section 3. Approval of the Sale. 3.01 The sale of the Property is hereby approved for a price of not less than$20,000. HRA Resolution 2012- Page 2 Section 4. Authorization for Execution and Delivery. 4.01. The Chairman,the Executive Director and Assistant Executive Director are hereby authorized to execute and deliver any documents necessary to effect the sale of the Property. PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 6TH DAY OF SEPTEMBER, 2012. LAWRENCE R. COMMERS - CHAIRMAN ATTEST: WILLIAM W. BURNS - EXECUTIVE DIRECTOR MMB:4841-3736-4752,v. 1 CONTRACT FOR PRIVATE REDEVELOPMENT By and Between HOUSING AND REDEVELOPMENT AUTHORITY In and For THE CITY OF FRIDLEY, MINNESOTA And Home Detail, Inc. FOR PROPERTY LOCATED AT 5745 3rd STREET N.E. This document was drafted by: Housing and Redevelopment Authority in and for the City of Fridley 6431 University Avenue N.E. Fridley, MN 55432 1st COPY (8-13-2012) CONTRACT FOR PRIVATE REDEVELOPMENT THIS AGREEMENT, made as of the day of , 2012 by and between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority"), a public body corporate and politic organized under the laws of the State of Minnesota and Home Detail, Inc., a corporation organized and existing under the laws of the State of Minnesota (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 et seq. (the "Act"), the redevelopment plan known as the Modified Redevelopment Plan for its Redevelopment Project No. 1 (the "Project Area") which plan, as amended, and as it may be amended, is hereinafter referred to as the "Redevelopment Plan" 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 order to achieve the objectives of the Redevelopment Plan and particularly to make specified land in the Project Area and in the Authority's area of operation available for development by private enterprise for and in accordance with the Redevelopment Plan, the Authority has determined to provide substantial aid and assistance to finance public development costs in the Project Area and in the Authority's area of operation; and WHEREAS, the Authority believes that the development and redevelopment of the Project Area pursuant to this Agreement, and fulfillment generally of the terms of this Agreement, are in the vital and best interests of the Authority and the health, safety, morals and welfare of its residents, and in accord with the public purposes and provisions of applicable federal, state and local laws under which the development and redevelopment are being undertaken and assisted; NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 2 r'*.\ ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 469.001, et seq. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Authority" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota. "Certificate of Completion" means the certification, in a form substantially similar to the certificate contained in Schedule C attached to and made a part of this Agreement, provided to the Redeveloper, pursuant to Section 4.3 of this Agreement. "City" means the City of Fridley, Minnesota, or its successors or assigns. "Construction Plans" means the plans, specifications, drawings and related documents for the construction of the Minimum Improvements that are required by the City for the issuance of its building permit. The Authority shall approve said Constructions Plans before the City issues any building permits. "County" means the County of Anoka, Minnesota. "Date of Closing" means the date or dates set forth in Section 3.1(b). "Event of Default" means an action by the Redeveloper described in Section 7.1 of this Agreement. "Homeowner"means the person(s) who purchase the Project from the Redeveloper. "Minimum Improvements" means the improvements to be constructed by the Redeveloper on the Redevelopment Property as specified in the Construction Plans approved by the Authority and attached to Exhibit D. "Party" means a party to this Agreement. 3 "Permitted Encumbrances" means those encumbrances as defined in Section 8.7 of this Agreement. "Project" means the Redevelopment Property and the Minimum Improvements. "Purchase Price" means the sum of Twenty Thousand and No/100 Dollars ($20,000), payable on the Date of Closing. "Redeveloper" means Home Detail, Inc., a Minnesota corporation, and its permitted successors or assigns. "Redevelopment Plan" means the Modified Redevelopment Plan adopted by the Authority in connection with its Redevelopment Project No. 1. "Redevelopment Property" means the real property upon which the Minimum Improvements are to be constructed, which real property is described on Schedule A attached to and made a part of this Agreement. "Redevelopment Property Deed" means a quit claim deed, substantially in the form of the deed in Schedule B attached to and made a part of this Agreement, used to convey the Redevelopment Property from the Authority to the Redeveloper. "Sales Price" means an amount equal to or greater than $140,000 and which is to be used on the certificate of real estate value when the Project is conveyed to the Homeowner. "State" means the State of Minnesota. "Unavoidable Delays" means delays which are the direct result of strikes or shortages of material; delays which are the direct result of casualties to the Minimum Improvements, the Redevelopment Property or the equipment used to construct the Minimum Improvements; delays which are the direct result of governmental actions (except that the City may not create an Unavoidable Delay by virtue of its own action); delays which are the direct result of judicial action commenced by third parties; or delays which are the direct result of citizen opposition or action affecting this Agreement or adverse weather conditions or acts of God. ARTICLE II Representations and Warranties Section 2.1. Representations by the Authority. The Authority represents and warrants that: (a) The Authority is a public body duly organized and existing under the laws of the State. Under the provisions of the Act, the Authority has the power to 4 ,.� enter into this Agreement and carry out its obligations hereunder. (b) The Authority will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Redeveloper and will cooperate with the efforts of Redeveloper to secure the granting of any permit, license, or other approval required to allow the construction of the Minimum Improvements; provided, however, that nothing contained in this Section 2.1(b) shall be construed to limit in any way the reasonable and legitimate exercise of the Authority's discretion considering any submittal or application. (c) The Authority makes no representation, guarantee, or warranty, either express or implied, and hereby assumes no responsibility or liability as to the Redevelopment Property or its condition (regarding soils,pollutants, hazardous wastes or otherwise). Section 2.2. Representations and Warranties by the Redeveloper. The Redeveloper represents and warrants that: (a) The Redeveloper will purchase the Redevelopment Property from the Authority pursuant to Article III hereof and in the event the Redevelopment Property is conveyed to the Redeveloper, then the Redeveloper will construct the Minimum Improvements in accordance with the terms of this Agreement, the Redevelopment Program and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). (b) The Redeveloper is a corporation organized under the laws of the State of Minnesota, is authorized to transact business in the State, and has duly authorized the execution of this Agreement and the performance of its obligations hereunder. (c) The financing arrangements which the Redeveloper has obtained or will obtain to finance construction of the Minimum Improvements will be sufficient to enable the Redeveloper to successfully complete the Minimum Improvements as contemplated in this Agreement. (b) The Redeveloper shall prepare the Construction Plans and construct the Minimum Improvements in accordance with all of the appropriate building and zoning codes, as well as House Plans that are shown in Exhibit D and the List of Materials in Exhibit E. (c) The Redeveloper shall have the Construction Plans prepared by an architectural designer or a licensed architect. (f) The Redeveloper shall sell the Project to the Homeowner for no less than the Sales Price. 5 ARTICLE III Conveyance of Property Section 3.1. Conveyance of the Redevelopment Property. (a) Title. The Authority shall, subject to the Permitted Encumbrances, convey marketable title to and possession of the Redevelopment Property to the Redeveloper under a quit claim deed in the form of the Redevelopment Property Deed contained in Schedule B of this Agreement. The conveyance of title to the Redevelopment Property pursuant to the Redevelopment Property Deed and the Redeveloper's use of the Redevelopment Property shall be subject to all of the conditions, covenants,restrictions and limitations imposed by this Agreement and the Redevelopment Property Deed. At its expense, the Redeveloper shall obtain and pay for any title policy and endorsements it deems necessary. The Authority agrees to obtain and shall deliver to the Redeveloper a commitment for an owner's title insurance policy, in the ALTA form requested by the Redeveloper, issued by a title insurance company acceptable to the Authority and Redeveloper, naming the Redeveloper as the proposed owner-insured of the Redevelopment Property in the amount of the Purchase Price (the "Commitment"). The Commitment shall have a current date as its effective date and shall, subject to the Permitted Encumbrances, commit to insure marketable title in the Redeveloper, 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. The Commitment shall set forth all levied real estate and special assessments relating to the Redevelopment Property. Said commitment shall have attached copies of all instruments of record, which create any easements or restrictions, which are referred to in its Schedule B. The Redeveloper will be allowed 20 days after receipt of the Commitment to make an examination thereof and to make any objections to the marketability of the title to Redevelopment Property, other than the Permitted Encumbrances, said objections to be made by written notice or to be deemed waived. If the title to the Redevelopment Property, as evidenced by the Commitment, together with any appropriate and available endorsements, is not good and marketable of record (subject only to the Permitted Encumbrances) in the Authority and is not made so by the Date of Closing, Redeveloper may either: (i) Terminate this Agreement by giving written notice to the Authority in which event this Agreement shall become null and void and neither Party shall have any further rights or obligations hereunder; or 6 (ii) Elect to accept the title in its marketable condition by giving written notice to the /"'N Authority, in which event the Redeveloper may hold back adequate funds from the portion of the Purchase Price payable at the closing to cure the defects and apply said holdback funds of the cost of curing such defects, including attorneys' fees, and pay the unexpended balance to the Authority. (If the amount of said holdback cannot be mutually agreed to by the Authority and the Redeveloper, the issuer of the Commitment shall determine the amount of said holdback.) (d) Time of Conveyance. The Authority shall execute and deliver to the Redeveloper the Redevelopment Property Deed for the Redevelopment Property on or before October 1, 2012 or on such date as the Authority and the Redeveloper shall mutually agree in writing (the "Date of Closing"). The Redeveloper shall take possession of the Redevelopment Property on the Date of Closing. (c) Price and Payment. The Authority agrees to sell and the Redeveloper agrees to purchase the Redevelopment Property for the Purchase Price. Unless otherwise mutually agreed by the Authority and the Redeveloper, the execution and delivery of all closing documents and the payment of the Purchase Price shall be made either at the principal offices of the Authority or offices of a licensed title company agreed upon by the parties. (d) Taxes and Special Assessments. 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 prorated as of the Date of Closing based upon each Party's 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. On or prior to the Date of Closing, the Authority shall pay all pending or levied special assessments. (e) Survey. The Authority will not provide a survey. (e) Inspection. At the Redeveloper's expense, the Redeveloper, its agents and designees, are hereby granted the right at any time or times after the date hereof to inspect, analyze, and test the Redevelopment Property. The Redeveloper shall hold the Authority and the City harmless from any liability resulting solely from the entering upon the Redevelopment Property or the performing of any of the tests or inspections referred to in this Section by the Redeveloper, its agents or designees. (f) Permits and Fees. The Redeveloper shall be responsible for all permits and fees including, but not limited to building, electrical, mechanical,plumbing, sewer, water, and park dedication fees. Section 3.2. Conditions Precedent to Conveyance. The obligations of the Authority to convey the Redevelopment Property to the Redeveloper shall be subject to the following conditions precedent: 7 (a) On the Date of Closing, the Redeveloper shall be in material compliance with all of the terms and provisions of this Agreement; (b) The Redeveloper shall have provided evidence satisfactory to the Authority that the Redeveloper is capable of financing or has obtained financing or a commitment for financing sufficient to finance the construction of the Minimum Improvements. The Redeveloper will be deemed to have provided adequate evidence of such financial commitment and ability if the Redeveloper provides evidence satisfactory to the Authority of a mortgage commitment; (c) The Authority and the City shall have approved the Construction Plans; (d) The Redeveloper shall have received the appropriate permits for the construction of the Minimum Improvements; ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements. The Redeveloper agrees that it will construct the Minimum Improvements on the Redevelopment Property in accordance with this Agreement, the Housing Design and Site Development Criteria and the Construction Plans approved by the City and the Authority and will maintain,preserve and keep the Minimum Improvements or cause the Minimum Improvements to be in good repair and condition until sale of the Project to the Homeowner. Subject to Unavoidable Delays, the Redeveloper shall commence construction of the Minimum Improvements on or before November 1, 2012. Section 4.2. Completion of Construction. (a) Subject to Unavoidable Delays, the Redeveloper shall have substantially completed the construction of the Minimum Improvements by March 1, 2013. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property shall be in conformity with the Construction Plans as submitted by the Redeveloper and approved by the City and Authority. (b) The Redeveloper agrees for itself, its successors and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, and the Redevelopment Property Deed shall reference the covenants contained in this Section 4.2 and in Section 7.3 of this Agreement, that the Redeveloper, shall promptly begin and diligently prosecute to completion the redevelopment of the Redevelopment Property through the construction of the Minimum 8 Improvements thereon, and that such construction shall in any event be completed within the period specified in this Section 4.2. Section 4.3. Certificate of Completion. (a) Promptly after completion of the Minimum Improvements in accordance with the provisions of this Agreement relating to the obligations of the Redeveloper to construct such improvements (including the date for completion thereof), the Authority will furnish the Redeveloper with a Certificate of Completion. 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 obligations of the Redeveloper to construct the Minimum Improvements and the date for the completion thereof (b) If the Authority shall refuse or fail to provide the Certificate of Completion in accordance with the provisions of this Section 4.3 the Authority shall, within twenty (20) days after written request by the Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in what respects the Redeveloper has failed to complete the Minimum Improvements in accordance with the provisions of this Agreement, or is otherwise in default, and what measures or acts will be necessary, in the opinion of the Authority, for the Redeveloper to take or perform in order to obtain a Certificate of Completion. (c) The construction of the Minimum Improvements shall be deemed to be completed when the City has issued its Certificate of Occupancy; provided that the Authority shall retain the right to withhold the Certificate of Completion in the event that the City's Certificate of Occupancy is issued with conditions, and to continue to withhold the Certificate of Completion until such conditions are fully satisfied. ARTICLE V Real Property Taxes and Insurance Section 5.1. Real Property Taxes. Prior to the Authority issuing its Certificate of Completion, the Redeveloper shall pay when due, prior to the attachment of penalty, all real property taxes payable with respect to the Redevelopment Property in the years subsequent to the delivery of the Redevelopment Property Deed. Section 5.2. Insurance. (a) The Redeveloper will provide and maintain at all times during the process of constructing the Minimum Improvements and, from time to time at the request of the Authority, furnish the Authority with proof of payment of premiums on: 9 (i) builder's risk insurance, written on the so-called "Builder's Risk -- Completed Value Basis," in an amount equal to one hundred percent (100%) of the insurable value of the Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so-called "all risk" form of policy. The interest of the Authority shall be protected in accordance with a clause in form and content reasonably satisfactory to the Authority; (ii) comprehensive general liability insurance together with an Owner's Contractor's Policy with limits against bodily injury and property damage of not less than$2,000,000 for each occurrence (to accomplish the above- required limits, an umbrella excess liability policy may be used); and (iii) workers' compensation insurance, with statutory coverage. (b) All insurance required in this Article V shall be taken out and maintained in responsible insurance companies selected by the Redeveloper, which are authorized under the laws of the State to assume the risks covered thereby. The Redeveloper will deposit annually with the Authority policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V, each policy shall contain a provision that the insurer shall not cancel nor modify it without giving written notice to the Redeveloper and the Authority at least thirty(30) days before the cancellation or modification becomes effective. ARTICLE VI 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, 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 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 parties in control of the Redeveloper or the degree of their control is for practical purposes a transfer or disposition of the property then owned by the Redeveloper, the qualifications and identity of the Redeveloper are of particular concern to the Authority. 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 further willing to accept and rely on the obligations of the 10 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 Assignment of Agreement. Also, for the foregoing reasons the Redeveloper represents and agrees that prior to the earlier of the issuance of the Certificate of Completion or the Termination Date the Redeveloper shall comply with the following: Except for the purpose of obtaining financing necessary to enable the Redeveloper or any successor in interest to the Redevelopment Property, or any part thereof, to perform its obligations with respect to constructing the Minimum Improvements under this Agreement, 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, lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Redevelopment Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the Authority. Notwithstanding the foregoing, the Redeveloper may transfer the Redevelopment Property to the Homeowner. Section 6.3. Release and Indemnification Covenants. (a) The Redeveloper covenants and agrees that the City and the Authority and the governing body members, officers, agents, servants and employees thereof shall not be liable for and agrees to indemnify and hold harmless the City and the Authority and the governing rte, body members, officers, agents, servants and employees thereof against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements, except for any loss resulting from negligent, willful or wanton misconduct of any such parties, and provided that the claim therefore is based upon the acts of the Redeveloper or of others acting on the behalf or under the direction or control of the Redeveloper. (b) Except for any negligent or willful misrepresentation or any negligent, willful or wanton misconduct of the following named parties, the Redeveloper agrees to protect and defend the City, the Authority and the governing body members, officers, agents, servants and employees thereof, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from this Agreement or the transactions contemplated hereby or the acquisition, construction, installation, ownership, and operation of the Minimum Improvements, except for the use of eminent domain if exercised by the Authority to acquire the Redevelopment Property, and provided that the claim therefore is based upon the acts of the Redeveloper or of others acting on the behalf or under the direction or control of the Redeveloper. (c) The City and the Authority and the governing body members, officers, agents, servants and employees thereof shall not be liable for any damage or injury to the persons or r 11 property of the Redeveloper or its officers, agents, servants or employees or any other person who may be about the Redevelopment Property or Minimum Improvements due to any act of negligence of any person, other than the negligence and misconduct of the City or Authority employees or those employed or engaged by the City or Authority. (d) 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. (e) Nothing in this Section or this Agreement is intended to waive any municipal liability limitations contained in Minnesota Statutes,particularly Chapter 466. ARTICLE VII Events of Default Section 7.1. Events of Default Defined. Subject to Unavoidable Delays, the following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement(unless the context otherwise provides), any one or more of the following events: (a) Failure by the Redeveloper to pay when due all real property taxes assessed against the Redevelopment Property. (b) Failure by the Redeveloper to commence or complete construction of the Minimum Improvements pursuant to the terms, conditions and limitations of Article IV of this Agreement. (c) Failure by the Redeveloper to substantially observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder. (d) The Redeveloper shall: (i) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the United States Bankruptcy Code or under any similar federal or state law; or (ii) make an assignment for the benefit of its creditors; or (iii) admit in writing its inability to pay its debts generally as they become due; or 12 (iv) be adjudicated as bankrupt or insolvent; or if a petition or answer proposing the adjudication of the Redeveloper as bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or State law shall be filed in any court and such petition or answer shall not be discharged or denied within ninety (90) days after the filing thereof; or a receiver, trustee or liquidator of the Redeveloper or of the Redevelopment Property, or part thereof, shall be appointed in any proceeding brought against the Redeveloper and shall not be discharged within ninety (90) days after such appointment, or if the Redeveloper shall consent to or acquiesce in such appointment. Section 7.2. Remedies on Default. Whenever any Event of Default referred to in Section 7.1 of this Agreement occurs, the Authority may take any one or more of the following actions after providing thirty days' written notice to the Redeveloper of the Event of Default, but only if the Event of Default has not been cured within said thirty days, or if the Event of Default is by its nature incurable within said thirty day period, and the Redeveloper fails to provide the Authority with written assurances, deemed satisfactory in the reasonable discretion of the Authority, that the Event of Default will be cured as soon as reasonably possible: (a) Suspend its performance under this Agreement until it receives assurances from the Redeveloper, deemed adequate by the Authority, that the Redeveloper will cure its default and continue its performance under this Agreement. (b) Terminate this Agreement. (c) Withhold the 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 of the Redeveloper under this Agreement. Section 7.3. Re-vesting Title in the Authority Upon Happening of Event Subsequent to Conveyance to the Redeveloper. In the event that subsequent to conveyance of the Redevelopment Property to the Redeveloper and prior to the receipt by the Redeveloper of the Certificate of Completion: (a) subject to Unavoidable Delays, the Redeveloper fails to carry out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the commencement and 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 thirty (30) days after written demand from the Authority to the Redeveloper to do so; or 13 (b) the Redeveloper fails to pay real estate taxes or assessments on the Redevelopment °'"•• Property or any part thereof when due, or creates, suffers, assumes, or agrees to any encumbrance or lien on the Redevelopment Property which is unauthorized by this Agreement or shall suffer any levy or attachment to be made, or any materialmen's or mechanic's lien, or any other unauthorized encumbrance or lien to attach, and such taxes or assessments shall not have been paid, or the encumbrance or lien removed or discharged or provision reasonably satisfactory to the Authority made for such payment, removal, or discharge, within thirty (30) days after written demand by the Authority to do so; provided, that if the Redeveloper shall first notify the Authority of its intention to do so, it may in good faith contest any mechanic's or other lien filed or established and in such event the Authority shall permit such mechanic's or other lien to remain undischarged and unsatisfied during the period of such contest and any appeal, but only if the Redeveloper provides the Authority with a bank letter of credit or other security in the amount of the lien, in a foliii satisfactory to the Authority pursuant to which the bank or other obligor will pay to the Authority the amount of any lien in the event that the lien is finally determined to be valid. During the course of such contest the Redeveloper shall keep the Authority informed respecting the status of such defense; or (c) there is, in violation of this Agreement, any transfer of the Redevelopment Property or any part thereof, or any change in the ownership or distribution thereof of the Redeveloper, or with respect to the identity of the parties in control of the Redeveloper or the degree thereof, and such violation shall not be cured within thirty (30) days after written demand by the Authority to the Redeveloper; Then the Authority shall have the right to re-enter and take possession of the Redevelopment Property and to terminate (and revest in the Authority) the estate conveyed by the Redevelopment Property Deed to the Redeveloper, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Redevelopment Property to the Redeveloper shall be made upon, and that the Redevelopment Property Deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Redeveloper and failure on the part of the Redeveloper to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the Authority at its option may declare a termination in favor of the Authority of the title, and of all the rights and interests in and to the Redevelopment Property conveyed to the Redeveloper, and that such title and all rights and interests of the Redeveloper, and any assigns or successors in interest to and in the Redevelopment Property, shall revert to the Authority, but only if the events stated in Section 7.3(a)-(c) have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this Section 7.3, the Authority shall have no right to re-enter or retake title to and possession of any part of the Redevelopment Property for which a Certificate of Completion has been issued. 14 Section 7.4. Resale of Reacquired Property; Disposition of Proceeds. Upon the reverting in the Authority of title to any parcel of the Redevelopment Property or any part thereof as provided in Section 7.3, the Authority shall have no further responsibility to the Redeveloper hereunder with respect to that or any subsequent parcel and may sell or otherwise devote said parcels to such other uses as the Authority shall in its sole discretion determine, without reimbursement of any sums paid by the Redeveloper to the Authority under this Agreement. Section 7.5. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Authority or Redeveloper 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 or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Authority or the Redeveloper to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VII. Section 7.6. No Additional Waiver Implied by One Waiver. In the event any agreement contained in this Agreement should be breached by either 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 7.7. Agreement to Pay Attorney's Fees and Expenses. Whenever any Event of Default occurs and the Authority or the City shall employ attorneys or incur other expenses for the collection of payments due or to become due or for the enforcement or performance or observance of any obligation or agreement on the part of the Redeveloper under this Agreement, the Redeveloper agrees that it shall,within ten (10) days of written demand by the Authority,pay to the Authority the reasonable fees of such attorneys and such other expenses so incurred by the Authority or the City. ARTICLE VIII Mortgage Financing Section 8.1. Limitation Upon Encumbrances of Property. Prior to the substantial completion of the Minimum Improvements, as certified by the Authority, neither the Redeveloper nor any successor in interest to the Redevelopment Property or any part thereof shall engage in any financing or any other transaction creating any mortgage or other encumbrance or lien upon the Redevelopment Property, other than the Permitted Encumbrances, whether by express agreement or operation of law, or suffer any encumbrance or lien to be made on or attach to the Redevelopment Property, other than Permitted Encumbrances, except: 15 • (a) For the purposes of obtaining funds only to the extent necessary for financing of the Minimum Improvements including, but not limited to, labor and materials, equipment, professional fees, real estate taxes, construction interest, organizational and other indirect costs of development, costs of constructing the Minimum Improvements, an allowance for contingencies, acquisition cost of the Redevelopment Property, costs of originating the Mortgage and customary financing costs. (b) Only upon the prior written approval of the Authority in accordance with Sections 8.1 and 8.2. The Authority shall not approve any Mortgage, which does not contain terms that conform to the terms of Section 8.5, except as provided in Section 8.6 of this Agreement. Section 8.2 Approval of Mortgage. The Authority shall approve a Mortgage if: (a) The Authority first receives a copy of all Mortgage documents. (b) The Mortgage loans, together with other funds available to the Redeveloper, will, in the reasonable judgment of the Authority, be sufficient to acquire the Redevelopment Property and construct the Minimum Improvements. (g) The Authority is not entitled under Section 7.2 to exercise any of the remedies set forth therein as a result of an Event of Default. (h) The Authority determines that the terms of the Mortgage conform to the terms of Section 8.5. However, the approval of a Mortgage by the Authority shall not be unreasonably withheld. Any Mortgage, which is subordinated to the rights of the Authority under this Agreement, may be granted in all or any part of the Redevelopment Property without the approval of the Authority. Section 8.3 Notice of Default; Copy to Mortgagee. Whenever the Authority shall deliver any notice or demand to the Redeveloper with respect to any breach or default by the Redeveloper in its obligations or covenants under this Agreement, the Authority shall at the same time forward a copy of such notice or demand to each holder of any Mortgage authorized by this Agreement at the last address of such holder shown in the records of the Authority. Section 8.4 Mortgagee's Option to Cure Defaults. After any breach or default referred to in Section 8.3, each such holder of a Mortgage shall (insofar as the rights of the Authority are concerned) have the right, at its option, to cure or remedy such breach or default (or such breach or default to the extent that it relates to the part of the Redevelopment Property 16 covered by its Mortgage) and to add the cost thereof to the Mortgage debt and the lien of its Mortgage; provided, however, that if the breach or default is with respect to construction of the Minimum Improvements, nothing contained in this Section or any other Section of this Agreement shall be deemed to require such holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the construction or completion of the Minimum Improvements, provided that any such holder of a Mortgage shall not devote the Redevelopment Property to a use inconsistent with the Redevelopment Plan or this Agreement without the written consent of the Authority. Section 8.5 Authority's Option to Cure Default on Mortgage. Any Mortgage, unless such requirement is waived by the Authority, executed by the Redeveloper with respect to the Redevelopment Property or any improvements thereon shall provide that, in the event that the Redeveloper is in default under any Mortgage authorized pursuant to this Article VIII, the holder of the Mortgage shall notify the Authority in writing of: (a) The fact of the default. (b) The elements of the default. (c) The actions required to cure the default. If the default is an "Event of Default" under such Mortgage, which shall entitle such holder to n foreclose upon the Redevelopment Property, the Minimum Improvements or any portion. thereof, and any applicable grace periods have expired, the Authority shall have, and each Mortgage executed by the Redeveloper with respect to the Redevelopment Property or any improvements thereon shall provide that the Authority shall have such an opportunity to cure the "Event of Default" within such reasonable time period as such holder shall deem appropriate. Section 8.6 Subordination and Modification for the Benefit of Mortgagees. In order to facilitate the obtaining of financing for the construction of the Minimum Improvements, the Authority agrees that it shall agree to any reasonable modification of this Article VIII or waiver'of its rights hereunder to accommodate the interests of a holder of a Mortgage, provided, however, that the Authority determines, in its reasonable judgment, that any such modification(s) will adequately protect the legitimate interest and security of the Authority with respect to the Redevelopment Property. Section 8.7 Permitted Encumbrances. The following shall be permitted encumbrances on the title to the Redevelopment Property: (a) Such encumbrances as are mutually agreed to in writing by the Authority and the Redeveloper. n 17 (b) Governmental regulations, if any, affecting the use and occupancy of the Redevelopment Property and Minimum Improvements. (c) Zoning laws of the City, County and State. (d) All rights in public highways upon the land. Reservations to the State, in trust for the tax districts concerned, of minerals and mineral rights in those portions of the Redevelopment Property the title to which may have at any time heretofore been forfeited to the State for nonpayment of real estate taxes. (e) The lien of unpaid special assessments, if any, not presently payable but to be paid as a part of the annual taxes to become due. (f)The lien of unpaid real estate taxes, if any, not presently payable but to be paid as a part of the annual taxes to become due. (g) A Mortgage as permitted under Section 8.2 ARTICLE IX Additional Provisions Section 9.1. Conflict of Interest; Authority Representatives Not Individually Liable. No member, official, or employee of the Authority shall have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, or employee participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership, or association in which he or she is, directly or indirectly, interested. No member, official, or employee of the Authority shall be personally liable to the Redeveloper, or any successor in interest, in the event of any default or breach by the Authority or for any amount which may become due to the Redeveloper or successor or on any obligations under the terms of this Agreement, except in the case of willful misconduct. Section 9.2. Equal Employment Opportunity. The Redeveloper agrees that during the construction of the Minimum Improvements provided for in this Agreement that it will comply with all applicable equal employment opportunity and non-discrimination laws, ordinances and regulations. Section 9.3. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the Redevelopment Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. 18 Section 9.4. Titles of Articles and Sections. Any titles of the several parts, articles, and sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 9.5. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is (1) dispatched by registered or certified mail,postage prepaid, return receipt requested, (2) transmitted by facsimile, (3) delivered by a recognized overnight courier or(4) delivered personally; and (a) in the case of the Redeveloper, is addressed to or delivered personally to the Redeveloper at 2562 Tournament Players Circle S. Blaine, MN, 55449; (b) in the case of the Authority, is addressed to or delivered personally to the Housing and Redevelopment Authority in and for the City of Fridley at 6431 University Avenue Northeast, Fridley, Minnesota, 55432, Attention: Assistant Executive Director; or at such other address with respect to either party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 9.6. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. n Section 9.7 Termination. This Agreement shall terminate upon the Authority issuing its Certificate of Completion or in accordance with the provisions of Article VIII and the discharge of all of the Authority's and Redeveloper's other respective obligations hereunder, but no such termination shall terminate any indemnification or other rights or remedies arising hereunder due to any Event of Default which occurred and was continuing prior to such 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 in its name and behalf on or as of the date first above written. 19 Dated: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By Its Chairperson And by _ Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) On this day of , 20 before me, a Notary Public, personally appeared Lawrence R. Commers and William W. Burns to me personally known and who by me duly sworn did say that they are the Chairperson and Executive Director, respectively, of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a public body corporate and politic organized under the laws of the State of Minnesota, and acknowledged the foregoing instrument on behalf of said Authority. Notary Public My Commission Expires: Authority Signature Page -- Redevelopment Contract 20 Dated: Home Detail, Inc.. By Its STATE OF MINNESOTA ) ) ss. COUNTY OF ) n On this day of , 20 before me, a Notary Public, personally appeared to me personally known and who by me duly sworn did say that s/he is the of Home Detail, Inc., a Minnesota corporation, and acknowledged the foregoing instrument on behalf of said corporation. Notary Public My Commission Expires: Redeveloper Signature Page -- Contract for Private Redevelopment 21 SCHEDULE A DESCRIPTION OF REDEVELOPMENT PROPERTY Address: 5745 3rd Street NE PIN: 23-30-24-23-0158 Legal: LOT 4, BLOCK 1, GATEWAY WEST 2nd ADDITION, SUBJ TO EASE OF REC 22 SCHEDULE B REDEVELOPMENT PROPERTY DEED STATE DEED TAX DUE HEREUNDER$ 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 under the laws of the State of Minnesota (the "Grantor"), and Home Detail, Inc., a corporation organized under the laws of the State of Minnesota(the "Grantee"). WITNESSETH, that Grantor, in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration the receipt whereof 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: LOT 4, BLOCK 1, GATEWAY WEST 2nd ADDITION, SUBJECT TO EASEMENTS OF RECORD, ANOKA COUNTY, MINNESOTA. PIN: 23-30-24-23-0158 n 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 Home Detail, Inc., dated , 20 (the "Contract") and (b) all matters of record. Grantor covenants and represents that: Grantee has committed to construct certain improvements pursuant to the Contract and Grantor has a right of re-entry in accordance with Sections 4.2 and 7.3 respectively of the Contract. Title is conveyed hereby subject to the following conditions subsequent: In the event that Grantee defaults on its obligations in the Contract and fails to properly cure said default, Grantor may declare a termination of all right, title and interest conveyed herein and all right, title and interest in the premises described above in this deed reverts to Grantor. Upon performance of Grantee's obligations in the Contract, including completion of the improvements, the release of the right of re-entry and reverter shall be evidenced by the recording of the Certificate of Completion and Release of Forfeiture attached as Exhibit 1 to this deed. The Grantor certifies that the Grantor does not know of any wells on described real property. 23 IN WITNESS WHEREOF, the Grantor has caused this deed to be duly executed in its behalf by its Chairperson and its Executive Director the day and year written above. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By Its Chairperson And by Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) On this day of , 20 before me, a Notary Public, personally appeared and to �-. me personally known and who by me duly sworn did say that they are the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a body corporate and politic under the laws of the State of Minnesota, and acknowledged the foregoing instrument on behalf of said Authority. Notary Public My Commission Expires: Property Tax Statements should be sent to: 24 SCHEDULE C n CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE WHEREAS, the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a body corporate and politic under the laws of the State of Minnesota (the "Grantor"), by a Deed recorded in the Office of the County Recorder and/or the Registrar of Titles in and for the County of Anoka and State of Minnesota, as Deed Document Number(s) and , respectively, has conveyed to Home Detail, Inc., a Minnesota corporation organized under the laws of the State of Minnesota (the "Grantee"), the following described land in County of Anoka and State of Minnesota, to-wit: LOT 4, BLOCK 1, GATEWAY WEST 2nd ADDITION, SUBJECT TO EASEMENTS OF RECORD, ANOKA COUNTY, MINNESOTA. PIN: 23-30-24-23-0158 WHEREAS, said Deed contained certain covenants and restrictions, the breach of which by Grantee, its successors and assigns, would result in a forfeiture and right of re-entry by Grantor, its successors and assigns, said covenants and restrictions being set forth in said Deed; and n WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Grantor 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 Grantee have been completed and the above covenants and conditions in said Deed have been performed by the Grantee therein and that the provisions for forfeiture of title and right to re-entry for breach of condition subsequent by the Grantor therein is hereby released absolutely and forever insofar as it applies to the land described herein, and the County Recorder and/or the Registrar of Titles in and for 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 said Deed, the breach of which would result in a forfeiture and right of re-entry. Dated: , 20 25 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By Its Chairperson And by Its Executive Director STATE OF MINNESOTA ) ss. COUNTY OF ANOKA ) On this day of , 20 before me, a Notary Public, personally appeared and to me personally known who by me duly sworn, did say that they are the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a body corporate and politic under the laws of the State of Minnesota, and acknowledged the foregoing instrument on behalf of said Authority. Notary Public My Commission Expires: 26 SCHEDULE D n HOUSE PLANS House plans are attached. n n 27 SCHEDULE E LIST OF BUILDING MATERIALS 28 1 r_„,... . r. III . --1 ... i m r- m - PI . --i ....- I 111 r 7 ill ,. • • . : .., ..,:.. ..:.. •N ',..‘',J-44-14,..!,,,•:.'".i.:::,.,.. ..: 1 1 i ,.-:.., , \t, -I-1- , J 1.,,,,! 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Home Detail<myhomedetail@rne.com> •• ,.• ,--: August 29,2012 10:22:09 AM CDT 1 Attachment,77.8 KB =I 1 IT U ti iii:x I! fi: p u 1 ..4.4-.. - z ...1 It... >--': 4; ,..,.r " i 1 H I IFK:45..T.T.41 ,. Z7'AZ.M% ;.I1 i! ;!! !fr,: ! ,,,i 1 ; ,i i i . t.:•:::::',:!•::!:;!' 1 rme:"..-A'.:::4 -..::.,::::::, ... -,;,....iit4.` . ; „-___ ___i____I: ; i ' \ -i i ::. ' : r; ' •,. (;:.1 ; : i ' --' „.,,.....,. _j'...:..."::,....... _,,,..'_, ,_'_.,4,-----4-.4, I 111 1 : 'III,• --• 'Ir.,-,:'::::::::•-•—i,;::::N-----4 i ' . , a,.. 0.9.4.-' *Moo 1FaNDATIOMPLAN 1.,-0' 3/&art.30.13,14311 2 xx 4 ,...6N , - hil4'.131C112,6i .0 Ni '11V1.2C1 1....10i1 t 1 VALIASISCI JJ.:91'.3.:;111 .1.114JatiV 112 1 -:,-.3-1-1 •moisaa mvioN Home 14,,,,,, i NVIc4 ...LN01.5 Of% ,A0 rim gi e„, „--, f .....sz f ,Z,41 I 1 I I I i 1. v, `1, telt 1 • -,-,,,,, i i ' I , . ,1 , I ,3 7t1 t 1(11 1 i i ril .11 i i .., i . . , 1 ' " 1 ii 1 : to '•4 : 1 : kJ I 1 i •- 1 .• : • 1 It 1 : 4-:1'.•-;k.._,.—ra• i , k ,','•I,.,---tk,i--,-4. " , "A I . I , . i fl... 66 I V. , . i 4 . ,41 ,....,,;‘,41.'-•„. I 1 I 1 ko, i tr- .• i 1 , 1 - 1 1 I i i• • . , . ., .. , ■I . O ! , t . .. i. . . , . . : 1 1 I . . / ..: • . : : 1 ; . . • . . i . .: : . .• :• .• . . : ■ 1 i 1 1 i 1 /1'• .1 4-31 0,44 1 7( 41-1Z F u 1, ".--- _ , , 1 I , II s F ,P Q • 3 3 f ti 1 " it \` yr; __, 0 j, \ 1 4.-4' P 3'-'1' 5.-5 10'-8' ± , a 11 14, ( I , i 1 4 k. 14A i I � , f s E ' 11 1 p d11.2 MY: LL_G ! 1 f BIRCH HOME DESIGN, t' r Q }D T/ 1 , 1 TWO STORY PLAN i�D.EY MrE ��(! _ ....N r i ACTION ITEM HRA MEETING OF SEPTEMBER 6, 2012 CITY OF FRIDLEY Date: August 29, 2012 To: William Burns, Executive Director From: Paul Bolin, Asst. Executive HRA Director Subject: Public Hearing - Sale of 6071 University Avenue NE - GWNE Authority Staff received a purchase offer from the McNutt Companies for the parcel located at 6071 University Avenue (former Sinclair Station). Dave McNutt is proposing to develop retail space somewhere between 2,000 and 4,500 square feet in size.A `. 1.1.,,,v�yx y�. ,* `"` . ;.. °1 '�.;WO - - ^t •x -' °,i�. - ---....... ♦ j v> 3MSi A't 5:9nit$ .�+�". .'. : ,,-„- ' , `.,•tr .' �' !t>.. . .. ".” r., .s. ,''s t S i.<- . i4.4 rest'=2�" aX ; t0/600000,41,_ t"F'?`•. ■ "`'.'"'_" r bar. n sue, tt t F- , r.t.:?:Ili ,R.!llilt i r: R 2 8 R -_qs;�si''tg-'4rt ` r''. 9 qi � '1..i".,'''`,. . M� -:. - kt'' " d'._ 5- (( ' 4 ` +- by !, ... x 'R,i yx "F ,. - - 11,,,,,,:, , E. -}i `max ,,,,,,;,-1,•"atX::;: _- ` .. .r r. - '''.,I s f r `>c - 1-1>'" , f it,';f .r'� I .:a„' &'l. vim.k. .-'.{,..- ' '' t (''�zr `: : '�',, s�' ?; L' � A°K','071 UM rrspityAv N di- •' xa X�'• 241`.-P v - ...M';‘..: F �1-�',"7,---', ' >„ k• . .�C. .rte.» Y gx-..t ak i Im,. tt t ;:: Jr '- F i't ' r it 3 1 :+ }j '1, e `. tea-' w, ;� * r t i e i r 1 1 r tile-. I i)Lpt*i' i s` "l�y�rt, 'magerOge1,3/20i 2 !^E-1`k •ff'..,*. • • -&] ti 'r } , t L... �•t �.:, What originally seemed to be a fairly straightforward land sale and development has become much more, as the discussions have evolved into the potential of incorporating a pedestrian overpass/elevator into the site. Legal counsel, Staff and Mr. McNutt have determined that a more encompassing development agreement is the. best way to proceed with the potential sale of this site. As staff has engaged in dscussions with Mr. McNutt, the scope of the project and potential tenants have been expanded. City Staff currently has a grant application in to the Met Council to fund the technical design work for the overpass. The timing of the grant awards has also caused a delay in moving forward more quickly with the sale of the property. If the grant is awarded, Mr: McNutt would like to incorporate the overpass into his plans. Below are two views of how an overpass lion. shaft could be constructed on the site and how it ties into the Northstar Station. �Y" 4 �aA -,7rte 4; a y •� '. . � :; ,,,, ,q.,-;•,,,,,:,1,...-bs;,,2,,,,,,:!*.%;;;;i:,4it:Iii!r5e...';',41 ,,i, `,.:!),41i1;'::1- 11;',',;;;,..i.`i':,,,;°::#i 1 s � . $ k -,- %.,7:,!:- : l �'• � °� -8 r ,,r rot 3',` « xa b gg f c "� .yf ''''''''''',1:;',./:- L Aa....} 3F 'u � 4.-7,?:' .�, " � ,�,,�+.; �i u ,4 Ste' e a k. r.s..�k.iz;; ;pT e 4 4 y Y 9 ��� d° : b g COMMUTER RAIL ' - �� ca a °'f s� ' ' �:-°7 ;,ot ,....,r'`" ;;' a .,, am .''$w' � a °..,°``� .a'c°' ^'`� . ;a'.`•.a; Ta n x r a a� r ;`RETAIL „"" S'� FS � .fit 3 7`. s i � ` ,j N4. =3F it #r' g ka Mr. McNutt will also be seeking approval of his site plan from the Planning Commission and the City Council, as he is within the Transit Oriented Development Zoning overlay. The delay in waiting for the awarding of the grant also pushes this land use action item back until October or possibly November. In order to accommodate legal requirements, the Sun-Focus' deadline for legal notices, and allow for the land sale, staff advertised the public hearing for September 6th. As mentioned, a number of positive developments have made the potential sale more complicated. At this time Staff is not ready to recommend the sale of the property. Staff recommends approval of a motion to open the public hearing, in the event that any member of the audience is at the meeting to discuss the proposal. Staff then recommends that the Authority then adopt a motion to continue the public hearing until November 1st• n Fridley HRA Housing Program Summary Cover Page September 6, 2012 HRA Meeting Report Description Loan Application Summary Loan application activity (e.g. mailed out, in process, closed loans) for past month and year-to-date. Loan Origination Report Loan originations for past month and year-to-date. Remodeling Advisor Shows the number of field appointments scheduled and completed for the Remodeling Advisor Services administered by Center for Energy and n Environment. HA—Paul's Documents\HRA\HRA Agenda Items\2012\September 6,2012\Housing Program CoverSeptember-20I2.docx Fridley HRA August 15, 2012 Application Summary 07/15-08/15 Year-To-Date New Applications Total Applications Rec'd/ Loans Applications Applications Loans Program Sent Out* in Process Closed Mailed Processed Closed HRA Revolving Loan Fund 4 3 0 1 13 12 4 HRA- Fridley Last 0 0 0 1 1 1 MHFA Deferred Loan 0 0 0 0 0 0 MHFA Fix-Up Fund 2 0 0 3 0 0 MHFA Community Fix-Up Fund 0 0 0 0 0 0 MHFA Community Fix-Up w/ Discount 0 0 0 0 0 0 CEE Home Energy Loan 1 0 0 6 1 1 Private Bank Loan (through CEE) 0 0 0 0 0 0 Xcel OSES 0 0 0 1 0 1 MHFA Rental Rehab Loan Fund 0 0 0 0 0 0 DOC Rental Energy Fund 0 0 0 0 0 0 Totals: 7 3 0 24 14 7 *Number of applications sent out does not take into account property owners downloading their application from the CEE website i , r ' Fridley HRA 8/15/2012 Loan Originations Programs This Month Previous Month Since 1/1/2012 HRA Loans(incl.CFUF Discount loans) $ - $ 12,426.00 $ 77,793.00 Leveraged Loans $ - $ - $ 6,798.17 Total $ - $ 12,426.00 $ 84,591.17 Funding Sources This Month Previous Month Since 1/1/2012 Fridley HRA inc Revolving&FRIDLAST $ - $ 12,426.00 $ 77,793.00 MHFA FUF/CFUF $ - $ - $ - Fridley Discount portion for CFUF $ - $ - $ - Met Council $ - $ - $ - CDBG/HOME $ - $ - $ - • CEE Energy $ - $ - $ 5,400.00 Other $ - $ - $ 1,398.17 Total $ - $ 12,426.00 $ 84,591.17 Types of Units Improved* *most HH do more than one improvement so the total#will be equal or greater to the number of loans originated e"1 This Month Previous Month Since 1/1/2012 Single Family - 1 6 Duplex - - - Tri-Plex - - - 4 to 9 Units - - 1 10 to 20 Units - - - 20+Units - - - Total - 1 7 Types of Improvements Interior #of Projects %of Total Bathroom remodel - 0% Kitchen remodel - 0% General plumbing - 0% Heating system 1 13% Electrical system 1 13% Basement finish - 0% Insulation - 0% Room addition 1 13% Misc.interior projects - 0% Foundation - 0% Exterior Siding/Fascia/Soffit - 0% Roofing 2 25% Windows/Doors 2 25% /"■ Garage - 0% Driveway/sidewalk 1 13% Landscaping - 0% Misc.exterior projects - 0% Fridley HRA Remodeling Advisor Service - 2012 August 15, 2012 Remodeling Advisor Appointments Appointments Month Scheduled Completed Jan-12 0 0 Feb-12 2 2 Mar-12 1 1 Apr-12 3 3 May-12 3 3 Jun-12 7 7 Jul-12 0 0 Aug-12 2 2 Sep-12 0 0 Oct-12 0 0 Nov-12 0 0 Dec-12 0 0 Total 18 18 *Remodeling Advisor monthly amounts may change as paperwork from a visit may not come in until the next month for the previous month. FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY September 6, 2012 AM-Agenda Ue GalC 1. Building Permit Monthly Report July 2012 Attached is a copy of the report for the month of July. The report shows # of permits & the value of the work done, by permit type. The report shows allows you to compare July 2012 vs.July 2011 and also see where the numbers are at for the year as compared to last year. 2. Housing Replacement Program Staff has continued to watch the local market and walked through 3 more homes over the past 2 weeks. There has been a very limited supply of foreclosures coming onto the market and prices have started to creep upward. Lenders don't seem at all willing to negotiate on price for at least the first 30 days these homes are on the market. It appears that as prices trend upwards, the Authority may need to pay in the $60,000 to $70,000 range to acquire some of these properties that are horribly blighted. 3. JLT Site / Northstar Transit TIF District Over the past month the Planning Department met, for the 2nd time, with a group that was interested in purchasing the JLT Site. Staff will continue to monitor discussions about the site and bring forward a recommendation to create the Northstar Transit TIF District at the appropriate time to capture the increment generated by the new development. 4. Columbia Arena Bill Fogerty,property owner,received Planning Commission approval for the SUP and plat needed for his proposed senior housing project. These items move on to the City Council for review on September 10th. Mr. Fogerty has not yet submitted enough information for Staff and legal counsel to make any determination on the eligibility for TIF assistance. Late last week Mr. Fogerty did hire Attorney Bob Diecke, a TIF specialist, to help him organize the materials needed for our review. It will likely be November or December before there is any action required on his request. 5. Faulkner / White Pines Senior Jim Faulkner is underway with Phase II of his senior memory care building. The second phase,which fronts on Moore Lake Drive, contains 19 units. Mr. Faulkner expects to finish completion and open the building 6. BAE / RER Update Paul Hyde has reported that after a number of discussions he has gotten Wells Fargo to agree to giving him an extension to complete the AUAR before closing. Mr. Hyde reports he is now just waiting to get the promise in writing and is then ready to get the environmental study underway. I will provide the latest information next Thursday. The Non-Agenda Update is simply a means for Staff to provide the Authority information on items that are not regular agenda items. Topics covered include proposed projects still in the idea stage,updates on existing projects, construction updates and other items that may be of interest to the Authority, but not requiring public discussion or action. If there are any items you would like covered in upcoming issues of the Non-Agenda Update please send me an e-mail. bolinp @ci.fridley.mn.us ii CITY OF FRIDLEY BUILDING INSPECTION MONTHLY REPORT July-12 2012 2011 2012 2011 JULY JULY Y-T-D Y-T-D RESIDENTIAL 77 147 319 486 COMMERCIAL 7 12 56 69 INDUSTRIAL 0 0 0 0 INSTITUTIONAL 0 0 1 4 MULTI FAMILY DWELLING 2 0 2 5 PUBLIC FACILITY 0 0 3 2 TOWNHOUSE 0 0 1 2 DUPLEX 0 0 0 0 SIGNS 1 2 20 28 WRECKING 0 1 1 9 TOTAL 87 162 403 605 I RESIDENTIAL HEATING 36 29 150 162 PLUMBING 34 5 185 164 ELECTRICAL 27 33 204 201 TOTAL 97 67 539 527 COMMERCIAL HEATING 6 5 33 43 .'" PLUMBING 6 5 31 40 ELECTRICAL 16 22 98 123 TOTAL 28 32 162 206 GRAND TOTAL 212 261 1104 1338 2012 2011 2012 2011 JULY JULY Y-T-D Y-T-D RESIDENTIAL $630,985.00 $852,225.00 $2,920,788.65 $2,585,783.57 COMMERCIAL 1,857,800.00 2,720,957.61 $11,886,935.00 $13,969,693.61 INDUSTRIAL 0.00 0.00 $0.00 $0.00 INSTITUTIONAL 0.00 0.00 $273,780.00 $827,200.00 MULTI FAMILY DWELLING 43,466.00 0.00 $43,466.00 $27,310.00 PUBLIC FACILITY 0.00 0.00 $549,171.00 $51,000.00 TOWNHOUSE 0.00 0.00 $7,500.00 $2,922.00 DUPLEX 0.00 0.00 $0.00 $0.00 SIGNS NO VALUE FOR SIGNS OR WRECKING WRECKING NO VALUE FOR SIGNS OR WRECKING TOTAL $2,532,251.00 $3,573,182.61 $15,681,640.65 I $17,463,909.18 COMMERCIAL HEATING $844,460.00 $118,061.00 $4,266,238.00 $2,307,590.00 PLUMBING 42,516.00 114,446.00 $939,004.00 $1,027,026.00 SIGN DOUBLE FEE TOTAL $886,976.00 $232,507.00 $5,205,242.00 $3,334,616.00 I less misc. voids/double sign 2,500.00 GRAND TOTAL $3,419,227.00 $3,805,689.61 $20,886,882.65 $20,801,025.18 I CITY OF FRIDLEY BUILDING INSPECTION MONTHLY REPORT I August-12 e"'"N 2012 2011 2012 2011 AUGUST AUGUST Y-T-D Y-T-D • RESIDENTIAL 66 161 385 647 COMMERCIAL 9 12 65 81 INDUSTRIAL 0 0 0 0 INSTITUTIONAL 0 0 1 4 MULTI FAMILY DWELLING 0 0 2 5 PUBLIC FACILITY 1 2 4 4 TOWNHOUSE 0 0 1 2 DUPLEX 0 0 0 0 SIGNS 2 2 22 30 WRECKING 1 2 2' 11 TOTAL 79 179 482 784 RESIDENTIAL HEATING 37 22 187 184 PLUMBING 26 26 211 190 ELECTRICAL 37 38 241 239 TOTAL 100 86 639 613 COMMERCIAL HEATING 5 3 38 46 PLUMBING 4 1 35 41 ELECTRICAL 12 15 110 138 TOTAL 21 19 183 225 GRAND TOTAL 200 284 1304 . 1622 2012 2011 2012 2011 AUGUST AUGUST Y-T-D Y-T-D RESIDENTIAL 347,419.00 756,906.00 3,268,207.65 3,342,689.57 COMMERCIAL 842,519.00 6,521,454.00 12,729,454.00 20,491,147.61 INDUSTRIAL 0.00 0.00 0.00 0.00 INSTITUTIONAL 0.00 0.00 273,780.00 827,200.00 MULTI FAMILY DWELLING 0.00 0.00 43,466.00 27,310.00 PUBLIC FACILITY 0.00 235,000.00 549,171.00 286,000.00 TOWNHOUSE 0.00 0.00 7,500.00 2,922.00 DUPLEX 0.00 0.00 0.00 0.00. SIGNS NO VALUE FOR SIGNS OR WRECKING WRECKING NO VALUE FOR SIGNS OR WRECKING TOTAL 1,189,938.00 7,513,360.00 16,871,578.65 I 24,977,269.18 COMMERCIAL HEATING 440,900.00 98,098.00 4,707,138.00 2,405,688.00 PLUMBING 140,283.00 40,000.00 1,079,287.00 1,067,026.00 SIGN DOUBLE FEE TOTAL 581,183.00 138,098.00 5,786,425.00 3,472,714.00 DEMO PERMIT VALUE less misc. wids/double sign 2,500.00 GRAND TOTAL 1,771,121.00 7,651,458.00 22,658,003.65 28,452,483.18 I