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HomeMy WebLinkAboutEDA AGN 10-23-07 AGENDA COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY October 23, 2007 IMMEDIATELY FOLLOWING THE 7:00 PM HRA MEETING, Parkview Villa, 965 40th Ave., Community Room B 1. Call to Order/Roll Call Gary L. Peterson, President Bruce Kelzenberg, Secretary/Treasurer Tammera Diehm Bruce Nawrocki Bobby Williams Vice President-position open 2. Pledge of Allegiance CONSENT AGENDA 3. Approve Minutes of August 27th and 28th of 2007. Approve financial report and payment of bills for August and September 2007, Res. 2007-23. Motion: Move to Approve the minutes and Resolution 2007-23, approving the Financial Report and payment of bills for the months of August and September, 2007. BUSINESS ITEMS 4. Res. 2007-24, Assignment and Assumption: Grand Central Lofts, Commercial Improvements Motion: Move to Adopt Resolution 2007-24, a Resolution Approving Assignment and Assumption Agreement transferring certain rights and obligations in the contract for private redevelopment between the Columbia Heights Economic Development Authority and Grand Central Properties, LLC to Grand Central Commons; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. 5. Preliminary Development Agreement for the Burger Redevelopment Site Motion: Move to Approve the Preliminary Development Agreement between the Tom Frattalone and the EDA; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. 6. Preliminary Development Agreement for the Beecroft Redevelopment Site Motion: Move to Approve the Preliminary Development Agreement between C.R.O.S. Companies LLC and the EDA for the Beecroft Redevelopment Site; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. 7. Demolition of Beecroft Building at 3710 Central Motion: Move to Approve the low quote for demolition of the Beecroft building at 3710 Central Avenue from Frattalone Inc. in an amount not t exceed $23,600. 8. Industrial Park Groundwater Investigation Report of Contaminated Soil Motion: Move to Approve the ProSource Industrial Park Groundwater Investigation Report of contaminated soil scope of work and contract, not to exceed $84,748 and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. 9. Resolution 2007 -21, and 2007 -22, 2008 Budget and Levy Motion: Move to Adopt Resolution 2007-21, being a Resolution of the Columbia Heights EDA Adopting the 2008 Budget of $274,863 and a levy of $78,622 and recommending approval of the same to the City Council. Motion: Move to Adopt Resolution 2007-22, being a Resolution of the Columbia Heights EDA approving a special benefit of $196,241 and recommending approval of the same to the City Council. 10. Acquisition of 3805 2nd Street Motion: Move to authorize staff to negotiate a purchase agreement with the owners of 3805 2nd Street NE for a total price, including closing costs and outstanding assessments, not to exceed $105,000. 11. Adjournment ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES August 27,2007 CALL TO ORDERIROLL CALL President, Gary L. Peterson called the meeting to order at 6:30 p.m. Present: Gary L. Peterson, Bruce Nawrocki, Tammera Diehm, Marlaine Szurek and Bruce Kelzenberg. Williams arrived at 6:44pm. Absent: Patricia Jindra PLEDGE OF ALLEGIANCE BUSINESS ITEMS Adopt Resolution 2007-20, Awardinq the Sale of Public Facilitv Lease Revenue Bonds, Series 2007B Walt Fehst stated the bids were opened this morning and would like to turn this over to Mark Ruff. Mark Ruff, Ehlers & Associates passed out one more document to the board which contained: 1) results of the bids, 2) the Moody's Investors Service report for the bond issue; 3) payment schedules based on the bids and 4) is an overview of the market and how this bond issue compares to the market. The lowest bid was from Stifel, Nicolaus with a true interest rate, which combines the coupon rates and the fees at a 4.9589 percent. The second bid was from Northland Securities with 20 basis points or less than a quarter percent higher. We are very happy with the rate we received from Stifel, Nicolaus, which was based on a Moody's rating of 83 and is the rating we expected. It is just two notches below our cities general obligation A-1 rating. This is typical for something that is not a City Hall or a Public Works Facility. These are 20-year bonds. Fehst stated if you look the 4.959, compared to 4.96, we are less than three one hundreds percent or eleven ten thousands percent off of what the average is for a G. O. bond throughout the country. Ruff stated that is correct. Nawrocki asked if they only received the two bids. Ruff stated that was correct. Nawrocki stated he looked over the preliminary official statements sent out previously to him. The one for the Liquor Store he found interesting as they indicated we had revenues in 2005 of $367, 000 profits, 2006 we had $380,000 and on the document for the million dollar issue you indicate the profitability for 2005 was $222,000 and 2006 it was $224,000. On the statement from the audit conducted for 2006 it indicates profits of $202, 000 and 2005 of $200, 000. Where are you getting all of these different profit numbers? Ruff stated he wasn't sure which numbers Mr. Nawrocki was referring to that vary substantially. The purposes in the two different official statements was in an effort to say, if the Liquor Stores didn't lease property, how much money would be available to pay debt service. Economic Development Authority Special Meeting Minutes August 27, 2007 Page 2 01'2 Motion by Diehm, second by Williams, to Adopt Resolution 2007-20, a Resolution Awarding the Sale of $5,040,000 in Public Facility Lease Revenue Bonds, Series 2007B (Municipal Liquor Stores Project), and its related documents; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Andrew Pratt, Kennedy & Graven stated one of the major aspects of the Lease Purchase Agreement is that the EDA will be leasing the land and the facility to the City. The City would pay lease payments on it, which would intern be used to pay the debt service off. Section 5.6 of the Lease Purchase Agreement, talks about the Cities powers in any fiscal year not appropriating funds to pay the lease. In case that ever does happen, in section 3.02 references that the authority would have to find another tenant to payoff the bonds. That is one of the risks of the lease revenue bond. In this case we have the trustee being the EDA. Nawrocki stated in the debt service schedule you aren't paying anything but principal the 1st so many years and farther down the road we will end up making payments that will far exceed our expectations. Therefore, he wanted the record to show he would not be voting in favor of this item. Upon Vote: Williams-aye, Nawrocki-Nay, Kelzenberg-aye, Diehm-aye, Szurek-aye, Peterson-aye. Motion Carried. Peterson stated he received word today that Commissioner Jindra will be resigning from the EDA due to health issues. We wish her well. As board members he wanted everyone to think if they new of anyone they think would be a good candidate to fill her position and bring to bring that persons name to the meeting tomorrow night. ADJOURNMENT President, Peterson, adjourned the meeting at 6:58 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H :\EDAminutes2007\8-27 -2007 Special Mtg ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES August 28, 2007 CALL TO ORDERIROLL CALL President, Gary L. Peterson called the meeting to order at 7:01 p.m. Present: Gary L. Peterson, Bobby Williams, Bruce Nawrocki, Tammera Diehm, Marlaine Szurek and Bruce Kelzenberg Absent: Patricia Jindra PLEDGE OF ALLEGIANCE CONSENT AGENDA Approve Minutes of July 24, 2007 regular meeting and the Financial Report and Payment of Bills for the month of July on Resolution 2007-16. Nawrocki asked about the check for family fun shows. Streetar stated it was the carnival deposit from the festival. MOTION by Nawrocki, second by Kelzenberg, to approve the consent agenda items as listed. All ayes. Motion Carried. EDA RESOLUTION 2007-16 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR JULY 2007 AND PAYMENT OF BILLS FOR THE MONTH OF JULY 2007. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, Ihe money on hand, the purposes to which the money on hand is to be applied, the EOA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers Of bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the month of July 2007 and the list of bills for the month of July 2007 are attached hereto and made a part of this resolution; and WHEREAS, the EDA has examined the financial statement and the list of bills and finds them to be acceptable as to both form and accuracy. NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the attached financial statements and list of bills, which are attached hereto and made a part hereof, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the list of bills as presented in writing are approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this 28 day of August, 2007. BUSINESS ITEMS Resolution 2007-17, Third Amendment to Contract for Private Redevelopment Schumacher stated Mike Norton, Kennedy & Graven, as well as Dave Kloeber, the developer is here tonight to answer any questions the board may have. The Contract for Private Redevelopment was originally dated September 23, 2003, with 1st Economic Development Authority Meeting Minutes August 28, 2007 Page 2 of 10 amendment on April 26, 2005, and the 2nd Amendment was executed on November 22, 2005. The first condo building was constructed, then the residential real estate market softened, and sales slowed significantly. The current partner, Mr. Kloeber, is continuing to market the development. Due to the market conditions and the death of his partner, the developer now needs more time to complete the construction required by the Contract for Private Development, hence the third amendment, which provides two additional years, until December 31, 2010, to complete all the phases of the housing project and 2009. Nawrocki asked, who are we actually dealing with as he read in the St. Paul paper recently about the development in Ramsey where the City of Ramsey got their self into big problems, with the development. Kloeber stated he has owned Grand Central Properties, since December 1,2004. He does not know who owns the Ramsey project, has never been involved with the project and never will be. The executive who was committed to the project, Jim Hisel, who used to work with Bruce Nedegaard, had fraudulently filled out purchase agreements at Grand Central, and gave people checks so they could put it back in his account. Nawrocki asked the attorney, Mike Norton if he was aware of this situation. Norton stated he was and that the transfer of the Grand Central Properties was from Nedegaard to Kloeber. Nawrocki asked what is the third change. Schumacher stated it is to change the wording of the owner and the term of the agreement is extended. Diehm expressed to Kloeber that it is a great project, timing is unfortunate, hoped he knows we are a City and committee that is very committed to this project, supports this amendment and stated that we will do what we can to help him. Szurek and Kelzenberg stated they are also in agreement with Diehm, that it is a very nice project. Williams stated he also thinks the project is very nice and suggested they leave more lights on in the building, which would attract more people to the building. Kloeber stated Streetar has been very helpful and has been reassuring him the City is committed to the project. Streetar suggested that maybe on the mayoral updates Peterson could have Kloeber join him. Peterson stated that could be arranged. Motion by Diehm, second by Szurek, to Adopt Resolution 2007-17, a Resolution Approving a Third Amendment to the Contract for Private Redevelopment between the Columbia Heights Economic Development Authority and Grand Central Properties, LLC, and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Nawrocki felt Nedegaard did a good job on the project, but was concerned that we get involved in the problems of the project in the City of Ramsey, he doesn't want us to get into that kind of trouble, because not enough of the right answers were asked. We are Economic Development Authority Meeting Minutes August 28, 2007 Page 3 of 10 extending the agreement for three years and the original agreement should have been done by this time, getting back the TIF money depends on the tax income of the project and at this time we aren't receiving anything. Diehm told Nawrocki that some of our reassurance is that we want it done right, and we are tied into the agreement. Upon Vote: Szurek-aye, Williams-aye, Nawrocki-aye, Peterson-aye, Diehm-aye, Kelzenberg-aye. All ayes. Motion Carried. RFS()UJTION NO. 20ll7-17 RESOLl JT!ON APPROVING;\ THIRD AMENDMENTTOCONTRACTH)R PRIVATE REDEVELOPi\.lENT BETWEFN TilE COLUivlBIA I IEIGHTS ECON()MIC [)EVEUWl'vIENT AUTIIORITY AND GRAND CENTRAL PROPERTIES, LLC BE IT RESOLVED By the Board ofCotllmissioners ("Board") of the Columbia lleights Economic Development Authority ("Authority") as follows: Sed ion I. Recitals. 1.0 I. The Authurity and New Heights Development, LLC (the "Redevcloper")elltered into a Contract fiJr Private Redevelopmelltdated September 22, 2U03, as amended by Filst Amcndment therctodated April 26. 2005 and a Second Ame1\(]ment thereto dated November 22, 20115 (the "Contract"), setting lorth the tcnllS ami conditions of redevelopment ufeertain propeliy \\ithinlhe Redevelopment Pr~ieet, generally located east of Central Avenue, between 47'h and 49~) Avelllles. 1.02. New Ileights Developlllent. LLC has changed its legal name to Grand CentHII Propl'rties, LLC but in all respects remains the Redeveloper under the Contract. 1.03. The parties have dctennined u need to :I111l'tHlthe Contract further, to a4iust the schedule fiJr redevelopment of the su~icct properly due to circumstances beyond the control of thc Redeveloper. 1.04. The Board has reviewed u Third Amendment to the Contract and finds that the approval and execution thereof and performance ofthc Authority's obligations thereunder arc in the best intelest of the City ami its residents. Section 2. Authorit" App,roval: Further PrQl;;ecdings 2.0 I. "I he Thinl Amendment to the Contract us presentcd to the Board is hereby in all respects approved, subject to modifications that do not alter the substance or the transaction and that are approved by the President and Executive Director, provided that exccution or the documents by such oflieials shall be conclusivc evidence ofapploval. 2.02. The President and Executive Director are hereby authorized to execute 011 behalfofthe Authority the Third Amendment to the Contract and any documents referenced therein requiring execution by the Authority, and tu carry oul, on behalf of the AuthOl ity its obligations thereunder. Approved by the l30ard ofCommissioncrs of the Columbia Heights Economic Development Authority this 28th day of August, 2007 Resolution 2007-18. Awardinq the Sale of. and Providina the Form, Terms. Covenants and Directions for the Issuance of its Taxable Tax Increment Revenue Note. Series 2007 A Schumacher stated the EDA and the City approved the establishment of the Kmart- Central Avenue TIF District and adopted a T1F plan for the purpose of financing certain improvements within the project. Pursuant to the development agreement as well as Minnesota Statutes, Section 469.178, the authority is authorized to issue and sell its bonds for the purpose of financing a portion of the public development costs of the project. Resolution 2007-18 approves the sale of TIF notes to the developer in the amount of $700, 000. This is necessary as it is anticipated the developer will be able to submit its qualified costs, thus requiring the EDA to approve up to the maximum note amount of $700, 000 to cover those costs as required by the Contract for Private Development. Staff will not issue the note until the developer provides his qualified costs and the costs are verified. Economic Development Authority Meeting Minutes August 28, 2007 Page 4 of 10 Motion by Szurek, second by Kelzenberg, to Adopt Resolution 2007-18, a Resolution Awarding the sale of, and Providing the form, terms, covenants and directions for the issuance of its taxable tax increment note, series 2007A; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. RESOLlITION NO. 2007-18 RESOLUTION AWARDING THE SALE 01'. AND PROVIDING TIlE FOInt, TERi\lS. COVENAI'\TS ANn nIRECTIONS FOR THE ISSUANCE OF ITS TAXABLE TAX INCREMENT REVENUE NOTE, SERIES 2007A BE IT RESOLVED BY the Board OfCOllllllissioners ("Board") of the Columbia Heights Economic Development Authority, Columbia Heights, ivlillllesota (the "Authority") as IIJlIuws: Section l. Authorization: Award llfSale. 1.0 l. Authorin:llion. The Authority ami the City of Culumbia Heights havc hcrctul()re approved the establishment of the Kmarl/Central Avenue Tax Incrcment Financing District (the "TIF District") the Downtown CBD Redevelopment Project (the "Project"), and hon'e adopted a tax increment Ilnancing planlar the purpose offillalH..:ing certain improvements within the Project. In eonncction with the TIF District the AUlhorityelltered into a l'ontraet for Private Redevelopment between the Authority and New Ileights Development. LLC (now known as Grand Central Properties, Ll.C) dated as of September 22, 2004, as amended by a First Amendment thcreto dated as of April 26, 2005, a second amendment thereto dated as of November 22,2005, and a Thild Amendment theretu dated as 01'.".__, 2007 (the "Agreemenl"l. Pmsuant to Minllesota Statutes, Section 469 178, the Authority is authorized to issue and sell its bonds for the purpose offinandnga portion ofthe public development costs ofthe Project. Such bonds are payable f)-om all or any portion ofrevl..:lIues derived Ji'om the TIF District and pledged to the payment of the bonds. The Authority hereby l1nds and determines that it is in the best interests of the Authority that it isslIe and seH its Taxahle Tax Increment Revenue Note in the maximum principal amount orS700,OO() (the "Note") for the purposc of financing certain public redcvelopmentcosts of the Project. 1.03. Issuance... Sale. and Tcrms__()fthe Note. The Authority hercby delegates to the Executive lJiredorthe determination ofthe date on which the Note is to be delivered, in accordance with the Agreement. The Note shall be issued to Gland Central Propertics. 1.l.C("O\\'Ile('). The Note shall be dated as of the date of deli Vel)', shall mature no later than February 1,2013, shall bear interest at the rate of6.0 % per annum from the date of original isslle or the Note, and shall be in the principal amount of the Public Redevelopment Costs submitted and approved in accordance with the Agreemcllt but in no evcnt greater than $700,000. The Note is issued in consideration of payment by Ownel or the Public Redevelopment Costs in at least the principal amount of the Note, in accordance with the Agreement. Section 2. FOUll of Note. The Note shall be in substantially the following form. with the blanks to he properly lilted in and the principal amount and payment schedule adjusted as of thc date of issue: UNITED STATE: OF A!'vlERICA STATE OF MINNESOTA COUNTY OF ANOKA c()LU~vlBJA IIEIGIITS ECON(JivlIC DFVFLOPivlENT AUTl\(JRITY No. R-I $ TAXABLE TAX INCREMENT REVENUE NOTE SERIES 2007 Rat~ Date QfOri2inal Issue 6.0% 2007 The Columbia I leights Economic Development Authority ("Authority") lor \'alue received, certifies that it is indebted and hereby promises to pay to Grand Central Properties, U.C or registered assigns (the "Owner"), the principal sum 01'$700,000 or so much thereof as has been from time to time advanced (the "Principal Amount"), as provided in the Agreement defined hereaner, together with interest on the unpaid balance theleofaeerued from the date of original issue hereofat the rate 01'6.0 percent per annUlll (the "Stated Rate"). This Note is given in accordance with that certain Contract for Private Redevelopment between the Issuer and the Owner dated as of September 22, 20()4, as amended by a First Amendment thereto dated as of April 26, 2005, a second amendment thereto dated as of November 22, 2005, and a Third Amendment thereto dated as of , 2007 (the "Agreement") and the authorizing resolution (the "Resolution") duly adopted by the Authority on August. ,2007 Capitalized tenus used and not otherwise de lined herein have the meaning provided for sllch terms in the Agreement unless the context clearly requires otherwise. I. Pavments. Principal and interest ("Payments") shall be paid on the llrst February I or August I after substantial completion oral! the Ilollsing Improvements and ('ommerciallmprovel11ents ill accordance with the Agreement, and on each February 1 and Angust I thereafter to and ineluding February 1,2014 ("Payment Dates"), in the amounts and from the sources set lorlh ill Section J herein. Payments shall he applied first to accrued interest and then to unpaid principal. Economic Development Authority Meeting Minutes August 28, 2007 Page 5 of 10 Paymenls arc payable by mail to the address of the (hvner or such other address as lhe ()wller may designate upon 30 days wriltenllolice to the Authority. Payments 011 this Note are payablc ill any coin or currency of the United States ofAmcrica \\hidl, Oil the Paymenl Date. is legaltcnder tor the payment of public and private debts. 2, Interest. Simple interest shall accrue li.otn the date of original isslle of this Note and shall be computed on lhe basis ofa yearof 360 days and charged lor actual days principal is unpaid. 3. Availqble Tax Increment. All payments on this Note are payable UIl each Payment Date solely /i'om and in the amount of the "Available Tax Increment" which means /a) on the first Payment Dale, 90 percent of the Tax Increment attributable to the Housing Property as defined in the Agreement that has been paid to the Authority by Anoka County prior to thut I'aymelltl)ate, and (b) on each Payment I)ate allel thc I1rst Payment Date, 90 percent of the Tax Increment allributable to the Hnusing PlOpcrty as defined in the Agreemenlthat has been paid tn the Authurity by Anoka Coullty in the six months preceding the Payment Date. The Authority shall have no obligation to pay pI incipal of and interest Oil this Note on each Payment Date from any source other than Available Tax Increment and the failure ofthe Authority to pay the entire amount of principal or interest on this Note on any Payment Date shallllot constitute a deHmlt hereunder as long as the Authority pays pI illc1pal and interest hereon to the extent of stich pledged revenues. The Authority shall have no obligatiollto pay unpaid balance of principal or accrued interest that may remain aller the !1nalPaymcnt on February L 2014. 4. Defa.ult. Upon an Event of Delhull by the Redevdoper under the Agreement, the AuthOlity may exercise the remedies with respect to this Note described in Sectioll9.2 of the Agleement, the terms of which arc incorporated hcrein by relclcnce. 5. Qr!JimJaI PrenaVlllcnt. (a) The principal sum and all accrued interest payable under this Note is pn.:payable in wholcor in pari at any lime by the Authority without premium or penally. No partial prepayment shall affect the alllollnt or timing orany other regular payment otherwise required to be made under this Note. (b) IJpon receipt by Redeveloper of the Authority's written statement of the Excess Amollnt as defined in Section3.4(cl orthe Agreement, nne-halfofsllch Excess Amollnt will be deemed to constitute, and will be applied to, prepayment of the principal amollntofthis Note. Such deemed prepaymellt is effective as or the Final Closing Date as del1ned in Section3.4(e) ofthe Agreement and will be recOlded by the Registrar in its records lor the Note. Upon reqllesl of the Owner, the Authority will (Ieliver to the Owner a statemcnt of the outstanding principal balance of the Note after application of the deemed plepaymentuuder this paragraph. 6. Nature ofObl.!eution. This Note is olle of an issue in the total maximum principal amount of$ issued to aid in !1nancing certain public redc,'c1opment costs and administratiH: costs ofa Prnjectllndertakcn by the Authority ]lurslluntto Minnesota Statutes, Sections 469.00 I through 4fi9.047, and is isslled pursuanlto the Resolution, and pursuant to and in full conlonnity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469, 174 to 469 179. This Note is a limited obligation of the Authority which is payable solely n'OIn the revenues pledged to the payment hereof under the Resolution. This Note and the inter<:st hcreon shall not be deemed to constitute agelleral obligation of the State of Minnesota or any political subdivision thereoL including, without limitation, the Authority Neither the State of Minnesota, nor any political subdivision th<:reofshall he obligated to pay the principal of or interest on this Note or other costs incident heleto except from and to the extent ofthe revellues pledged hereto, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereofis pledged to the payment of the principal of or interest on this Note or other costs incident hereto. 7. Ree.islIation andTransfer. This Note is issuable only as a fully registered note without coupons. As plOvided ill the Resolution, and subject to eertailllimitations setlorth therein, this Note is transferable upon the books of the AUlhority kept for that purpose at the principal on1ce of the City Finance Director, by the Owner hereof in person or by sHch Owner's attorney duly authorized in writing, upon surrender of this Note together with a written instrument oftnlnsfcr satisfactory to the Authority, duly executed by the Owner. Upon sllch translCr or exchange and the payment by the Owner of any tax, fee, or gO\'erllmclltal charge required to he paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a ne\\ Note 01' the same aggregate principal amount, hearing interest at the same rate and maturing on the same dates. This Note shall not be transferred to allY persoll unless the Authority has been provided with an opinion of counselor a certificate of the transferor, in a form satisfactory to the Authority, that stich transler is exelllptfi'om registration and prospectus delivery requirements oftCderal and applicable state securities laws. IT IS HEREBY CERTIFIED AND RECITED that all acts. eonditiolls. and things required by the Constitution and laws of the State of l\'linnesota to be done, to exist. to happen, and to be perlonned in order to make this Note a valid and binding limited obligation of the Authority according to its terms, have be<:n dOlle, do exist, have happened. and have been perlormed in tlue form, time and IlHlnller as so lequired. IN WITNESS WIIEREC)F, the Board of Commissioners of the Columhia Ileights Economic Development Authority ha\'e caused this Note to be executed with the manual signatures of its President and Executive Director. all as of the Date ofOriginallsslle specilied above. COLUMBIA IIEIGHTS EC'ONOMIC DEVELOP!vlENT AUTIIORITY Executive Director"Waller R. Fehst Presidellt"{iary L. Peterson REGISTRATION PROVISIONS Economic Development Authority Meeting Minutes August 28, 2007 Page 6 of 10 1 he ownership of the unpaid balance oCthe \\ithin Note is registered ill the bond legiSh:r of the City Finance Director, in the Hame of the person last listetl below. Date uf Registration Registered (Jwner Signature of ('ity Finant:e Director Grand Centrall'ropertics, l.tC Federal Tax I.D No. Section 3. Terms, ExecutiQ!l and Delivery. 3.0 I. Dg.nomination. PaYUlenL The Note shall he issued as a single typewritten note numbered R-I. The Note shall be issuable only in fully legistered form. Prindpal of and interest 011 the Note shall be payable by check or draft issued by the Registrar descl ibed herein. 3.02. Da~es: Interest Pavment Dates. Principal of and interest on the Note shall be payable by mail to the owner of record thercofas of the close ofhusiness un the l1Ikenth day of the month preceding the Payment Date, whethcr or not SHeh day is a business day. 3.03. Rc!!isJnltion. The Authority hereby appoints the City Finance Director to perform the functions ofregistlar, transter agent and paying agent (the "Registrar"). The enect of registration and the rights and duties of the Allthority and the Registrar with lespectthereto shall be as f{)ltows: (a) R~gister. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the legistration of ownership or the Note and the registration ortranslers and exchanges of the Note. (b) Iranslh of Note. Upon surrender rur transfer orthc Note duly endorsed by the legistered owner thereof or accompanied by a wriltell instrument of transrer. in form reasonably satisfactory to the Registrar, duly execnted by the registered owner thereof or by an allomey dnly authori7ed by the registered owner in writing, the Registrar shall authenticate and deliver. ill the name of the designated transferee or twnsfen.:es, a new Note ora like aggrcgate principal amuunt and maturity, as reqnested by the transferor. Notwithstanding the loregoing, the Note shall not be transferred to allY person unless the Authority has been provided with an opinion ofcoullsel or a certilkate of the transferor. in a form satisfhctoryto the Authority, that such transfer is exempt from Icgistration and [lrospedlls dcli\'el) Icquiremcnts of federal and applicable state securitics laws. .,'he Registrar l11ay close the books lor registration of any transfer aner the lllleenth day of the month preccding each Payment Date and nntil such Payment Date. (c) Cancellation. The Note SUI rendered upon any transfer shall be promptly cancelled by the Regisllar and thereaner disposed of as directed by the Authority. (d) ImnroPJ;ror Unauthorized Transfer. Whel1the Note is IHcsented to the Registrar lor transler, the Registrar mayrenlse to transfer the same until it is satisfied that the endorsement on such Note or separate instillment oftranslh is legally anthoriLed. The Registrar shall incur no liability lar its refusal. in goud faith. to make transfers, which it, ill its judgment. deems improper or unauthorin.:d. (e) Persons Deemg<1 Owners. The Authority and the Registrar may treat the person in whose name the Note is at any time registered in the bond rcgister as the absolute owner of the Notc, whether the Note shall be overdue or not for the purpose ofreceiving payment oC or on aecOllnt ot: the principal of and interest on stich Note and for all other purposes, and all such payments so made to any stich registered owner or upon the owner's order shall be valid and cffectualto satisfy and discharge the liability nfthe Authority upon such Note to the extent of the sum or SlllllS so paid. (f) Taxes Fees and Chll~. Forever)' transfer or exchange orthe Note. the Registrar may impose a chargc upon the owner thereof sufficient to lI~imburse the Registrar lar any tax, fec. or other governmental charge required to be paid with respect to such transfcr or exchange. (g) l'vlutilated Lost Stolen or Destroved N()\'!;. In case any Note shall becomc mutilated 01 be lost, stolen, or destroyed, the Registrar shall deliver a llew Note oflike amount, maturity dates and tenor in exchange and suhstitutionlor and upon cancellation ofsudl mutilated Note or in lieu of and in substitution for such Note lost stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith: and, in the case the Notc lost, stolen, or destroyed, upon filing with the Registrar of evidence satislactOlY to it that such Note was lost stolen, or destroyed, and ofthe O\\'llership thereoC and upon furnishing to the Registrar of an appropriate bond or indemnity in Jorm, substance. and amount satisfactory to it, in whieh both the Authority and thc Registrar shall be named as obligees. The Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Authority If the mutilated, lost stolen, or destroyed Note has already matured or been called for redemption in accOldanee with its terms, it shall not be necessary to issue a new Note prior to payment. 3.04. frgpamtion and DeliVer\' The Note shall bc prepared under the direction of the Executive Director and shall be executed on behalfofthe Authority by the signatures of its President and Executive Director. In case any officer whose signature shall appear on the Notc shall cease to be such officer before the delivery of the Note, sHch signature shall nevertheless be valid aud sufficient Jor all purposes. the same as ifsueh onicer had remained in office until delivery. When the Notc has been so execute(!' it shall be delivered by the Executive Directnrto the O\\'lIerthercofin accordance with the Agreement. Section 4. Security Provi,,sjons. Economic Development Authority Meeting Minutes August 28, 2007 Page 7 of 10 4.0 I. Pledge. The Anthority hereby pledges to the payment I)!' the principal of and interest on the Notc all Available Tax Increment under the tcrms and as defined in the Note. Available Tax Increment shall be applied to paymcnt orthe principal of and intcrest all the Note in accordance with the terms orthe form of Note set forth in Seetioll 2 of this resolutioll. 4.02. Bond Fnnd. Until the datc the Note is no longer outstanding and no principal thercofor interest thereon (to the extent requircd to be paid pursuant to this resolution) remains unpaid, the Authority shall maintain a sepal ate and special "Bond Fund" to bc Ilsed lor no purpose other than the paymcnt oflhe principal orand interest on the Note. The Authority irrevocably aglecs to appropriate to the Bond Fund ill each year all Available Tax Increment. Any Available Tax Incremcnt rcmaining in the Bond Fund shall be lIansl'crrcd to the Authority's account lor the TlF District upon termination of the Notc in accordancc with its terms. 4.03. Additional Bonds. If the Authority iSSlles any bonds or notes secured by Available Tax Increment, such additional bonds or notes me subOldinatc to the Note in all respects. Scction 5. f.:crtification of Proceeding:,;. 5.0 I. Certification ofPrucccdings. The officers of the Authority arc hereby authorized and directed tu prepare and furnish to the Owner orthe Note ccrtiHed copies ofull proccedings and records of the Authority, and sHch other affidavits, certificates, and information as may be rCiluired to show the facts relating to the legality and marketability orthc Note as the same appear from the books and records under their cllstody and control or as otherwisc known to them, and all such certified copies, celtilkntcs, and allidavits, including any heretofore fltltlishcd, shall be deemed represenlntions of the Authority as to the filets recited therein. Section 6. b:1l'cctivc Date. This resolution shall be effective upon approval. Adopted this 28 day of August, 2007 Anoka County Housin~ and Redevelopment Authority Economic Development Activities Streetar stated Karen Skepper is here from Anoka County. This is an offer from the Anoka County Housing and Redevelopment Authority (ACHRA), to participate in ACHRA economic development activities effort. Commissioners are asked to make recommendation to the City Council for their action on September 10m If not, no further action is required. What you're being asked to participate in is their economic development activity project. The City Council must pass a resolution to opt in for a period of five years and Anoka County would levy a tax in Columbia Heights each year. In 2008 about $200,000 and every year, thereafter around the same amount, or on an average of $205, 000 every year starting in 2008-2012. The cost, on an annual basis for a home worth $200,000 would be $30 to $31 per year. The maximum they could levy is $247,000 or about another $50,000, which would raise the annual cost for a $200,000 home to $38 or $39 per year. If you choose not to opt in, you must wait five years before you can opt in. September 14, 2007 is the deadline to decide if you want in or not. Renewing the housing stock and increasing the tax base is important, but requires sufficient public revenues and resources. If you participate you can use some of these funds for redevelopment projects, housing improvement and site preparation costs if you decided to build a public safety center or community center in Heritage Heights. Streetar stated an example of how to use these funds would be to acquire, demolish, and rebuild homes in the Heritage Heights neighborhood. There is only two ways to get that money: bond for it or use the levy. If you bond for the million dollars you are using principal and interest to pay for it, as opposed to if they levy, you would request that money be returned to the community, with no interest. If the county levies the money, you won't pay interest charges. Williams asked if every dollar that Anoka County collects would come back to our City. Karen Skepper of Anoka County stated when the funds come in from taxes, they only take their administration costs out of that and the rest would be available to the City. Economic Development Authority Meeting Minutes August 28, 2007 Page 8 of 10 Williams asked if Streetar was in favor of this. Streetar stated he is in favor of it to replace blighted housing, provide for home improvement loans, cleaning contaminated property, and taking care of vacation property. He knows what resources are out there and it isn't much. Peterson asked if we would pursue the tax increment. Streetar recommend not pursuing the special legislation, but in the next agenda item he has put together a housing plan. With the decertification of the A3, C7 and C8 Tax Increment Districts in 2009 and 2010, it will put a lot oftax capacity back on the roll. That means it is estimated that your able to increase your levy in the neighborhood of four to five hundred thousand a year to pay the debt service on any bonds you may sell, for projects such as the Community Center. You could bond for $5 million and not have to see a tax increase on residents in the City. Fehst asked if cities like Fridley, Coon Rapids, or Blaine are participating. Skepper stated they have not committed at this point, but Spring Lake Park has. Fehst stated there is so much we want to do and by having this type of revenue from the county would be beneficial. When you participate in this program you do not have to levy and if you do this you could recommend the 15% be lowered to 7%. Nawrocki stated the 15% is a little bit high, but some of our programs are at 10% and asked what the maximum levy the EDA can use is. Streetar stated the $247,000 would be the maximum the City could borrow. Motion by Diehm, second by Szurek, to recommend City Council participate in the Anoka County Housing & Redevelopment Authority Economic Development Activities, with the suggestion that the 15 percent be lowered to something more reasonable. Upon Vote: Nawrocki-nay, Kelzenberg-aye, Peterson-aye, Diehm-aye, Szurek-aye, Williams-aye. Motion Carried. Housinq Maintenance Plan Streetar stated since 2002, one of the City Council's priorities has been maintaining and improving the housing stock. To continue this process, staff has prepared a Housing Maintenance Plan for 2008 through 2017 that will provide support to maintain the housing stock. The plan represents the bare minimum to maintain the housing stock, and if resources allow should be increased. I am proposing five plans, which three of them you have been already participating in for many years. The programs include: 1) Housing Resource Center (HRC) provides home improvement loans, construction management services and information on a variety of housing topics. Since 2002, services have been provided to 1,819 homeowners. Staff recommends annual funding of the HRC program in the approx. annual average amount of $16,800. 2) Home Rehabilitation Incentive Program (HRI), provides homeowners with a cash rebate of 10%, 12%, or 15% of eligible rehabilitation costs up to $3,000, Economic Development Authority Meeting Minutes August 28, 2007 Page 9 of 10 depending on their income, The household income must be at or below 115% of the area median income or $88,206. Since 2002, 62 homeowners have received rebates and resulted in about $775,000 of improvements. Cost over 10 years is $505,000 and the estimated number of rebates is about 440. 3) Single-Family Home Replacement Program (SFHR) provides funding to allow for the replacement of the most blighted and dilapidated single-family detached homes in the City with new single-family detached housing. GMHC has been rebuilding the homes in the past few years. Staff put together an alternative program to try to do two to four homes per year. What we are recommending is that every other year beginning in 2008, the EDA provide $50,000 and staff would go to two other programs to leverage other funds, like we did in 2004 to tear down four houses and build eight new ones in their place. 4) Single-Family Home Deferred Loan Program (SFHD), provides a no or low interest deferred loan to a homeowner of lower income to complete structural improvements that would help maintain the quality of their home and the City's housing stock. The intent of the program is to provide assistance to homeowners who need to perform home maintenance, but who may not be able to pay a monthly debt service of a conventional loan. The loan is deferred and becomes payable when the property is sold or changes title. The funds are then loaned out to another homeowner. Staff recommends funding this program over 10 years in an amount of $306,426, which you would expect to provide 20 to 30 loans. 5) Housing Maintenance Capacity Building Program (HMCB), establishes future housing funding capacity through an EDA annual levy. By establishing this pool of resources the EDA can be assured this housing efforts that have begun will continue. Establishing the capacity ensures housing maintenance will remain a priority in the future. To establish his program the EDA would need to levy an additional $50,000 annually. The funds would be reserved for housing maintenance programs to be implemented after 2017. The program would create $455,931 of housing maintenance financial capacity over the 1 O-year period for future housing maintenance needs. In summary, these housing programs, with a total amount of money invested of $1.6 million over 10 years, suggest taking $1,091,000 from different fund balances and $450,000 in an annual EDA $50,000 of the levy beginning in 2009. Interest earnings on those funds over 10 years of $444, 000, be taken and invest into those programs. Fehst stated we did talk about extending the levy due to the public safety building, and activity center. He commended Streetar for coming up with this plan, which allows us something to show the residents that we are addressing the issues in housing. Nawrocki stated before we decide on raising taxes we should take a look at what we are already taxing our residents and he commended Streetar for coming up with these programs. Economic Development Authority Meeting Minutes August 28, 2007 Page 10 of 10 Diehm stated some of these programs we have already been participating, we need to be very aggressive with our housing, it is important we maintain our housing stock, the house is the biggest investment that we have, and that we have the obligation to help our residents out in maintaining this, Motion by Williams, second by Kelzenberg, to Approve the Housing Maintenance Plan subject to confirmation of these funds by the finance department. Upon Vote: Nawrocki-nay, Kelzenberg-aye, Diehm-aye, Williams-aye, Szurek-aye, Peterson-aye, Motion Carried, Other Business Streetar stated Kirsten Partenheimer passed out the agenda for the ACAC meeting that will be held tomorrow night. You are all welcome to attend, The next regular EDA meeting will be Tuesday, September 25, 2007 at City Hall, ADJOURNMENT President, Peterson, adjourned the meeting at 8:43 p,m, Respectfully submitted, Cheryl Bakken Community Development Secretary H:\EDAminutes2007\8-28-2007 regular meeting COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of October 23, 2007 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: 3 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Robert Streetar BY: DATE: October 23, 2007 BACKGROUND: The bound Financial Report for the months of August and September, Resolution 2007-20 is attached for review. The enclosed Financial Report lists the Summary (white), the Check History (Green), the Expenditure Guideline with Detail (blue) and Revenue Guideline with detail (yellow) for each fund. The reports cover the activity in the calendar (fiscal) year from January 1 through September 30. RECOMMENDATION: Staff will be available to answer specific questions. If the report is satisfactorily complete, we recommend the Board take affirmative action to receive the Financial Report and approve the payment of bills. RECOMMENDED MOTION: Move to approve Resolution 2007-20, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement and Payment of Bills for the months of August and September 2007. EDA ACTION: H:\EOAConsent2007\August September Fin Rep 2007 EDA RESOLUTION 2007-23 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR AUGUST AND SEPTEMBER2007 AND PAYMENT OF BILLS FOR THE MONTHS OF AUGUST and SEPTEMBER 2007. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the months of August and September 2007 and the list of bills for the months of August and September 2007 are attached hereto and made a part of this resolution; and WHEREAS, the EDA has examined the financial statement and the list of bills and finds them to be acceptable as to both form and accuracy. NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the attached financial statements and list of bills, which are attached hereto and made a part hereof, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the list of bills as presented in writing are approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this _ day of ,2007. MOTION BY: SECONDED BY: AYES: NAYS: President- Gary L. Peterson Attest by: Cheryl Bakken, Assistant Secretary H:\Resolulions2007\EDA2007-23 fin August, September 2007 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Meetina of: October 23, 2007 AGENDA SECTION: Business Items ORIGINATING DEPARTMENT: CITY MANAGER'S NO: 4 Community Development APPROVAL ITEM: Adopt Resolution 2007-24, BY: Robert Streetar BY: Assignment and Assumption: Grand DATE: October 18, 2007 Central Lots, Commercial Improvements BACKGROUND: EDA Commissioners are requested to approve a resolution approving an assignment and assumption agreement, transferring certain rights and obligations in the contract for private redevelopment between the Columbia Heights Economic Development Authority and Grand Central Properties, LLC, (Mr. Dave Kloeber) to Grand Central Commons, LLC. (Mr. Ehtesham Khoratty). This allows Grand Central Properties, LLC to the sell commercial property, approximately 2 acres, to Grand Central Commons, LLC. Even though the commercial portion will be no longer be owned by Grand Central Properties, LLC, Grand Central Commons, LLC is now responsible for completing the construction of the commercial improvements of the project in accordance with the requirements of the private contract for redevelopment. Under the current agreement, Grand Central Commons, LLC would be required to complete the commercial improvements by December 31, 2009. According to the private contract for redevelopment, before the assignment and assumption is approved by the EDA, the EDA must reasonably determine that Grand Central Commons, LLC has the qualifications and financial capability to fulfill the obligations in the private contract for redevelopment. Grand Central Commons, LLC has assembled a qualified and experience team to complete the commercial improvements. Contractor Pete Nelson, President Nelson Building and Development, Inc. 2 Division Street E., Suite 201 Buffalo, MN 55313 Leqal James F. Morrison, Attorney Morrison Fenske & Sund, P.A. 5125 County Road 101, Suite 202 Minnetonka, MN 55345 Financial Peter Miller, Vice President Anchor Bank City Centre Place 1920 Donegal Drive Woodbury, MN 55125 Leasinq and Propertv Manaqement Gary Germundsen, Senior Associate Colliers International 200 South Sixth Street, Suite 1400 Minneapolis, MN 55402 Desiqn & Development John Feges, Principal Collage Studio of Urban Design, Inc. 530 North Third Street, Suite 500 Minneapolis, MN 55401 Staff has met with the parties above and determined that Grand Central Commons, LLC is qualified and has the financial capability to fulfill the obligations in the contract for private redevelopment. Please find attached information about the Nelson Building and Development, Colliers and Collage Studio of Urban Design, In addition, please find attached letter from each of the team members indicating their intent to work on behalf of Grand Central Commons, LLG. RECOMMENDATION: Staff recommends Adoption of Resolution 2007-24, the Assignment and Assumption Agreement. RECOMMENDED MOTION: Move to Adopt Resolution 2007-24, a Resolution Approving Assignment and Assumption Agreement transferring certain rights and obligations in the contract for private redevelopment between the Columbia Heights Economic Development Authority and Grand Central Properties, LLC to Grand Central Commons; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same, Attachments EDA ACTION: Kennedy & 470 {IS Bank Plaia 200 South Sixth Street ivlinJlcapolis iv1N 55402 (612) 337-9300 telephone (612) 337-9310 I,IX hllp:l/\\'\\'w. kennedy-gravell.com CHARTERED MEMORANDUM TO: Columbia Hcights EDA FROM: Michacl Norton DATE: October 16, 2007 RE: Assignmcnt and Assumption: Former K-Mart Sitc The EDA recently approvcd a "Third Amendment to Contract for Private Redcvelopment", which permitted the substitution of Grand Central Properties, LLC, for Ncw Heights Development, LLc, the prior developcr of K-Mart site. Subsequently, the new Rcdeveloper has agrced to sell approximately two acres of the site to Grand Central Commons, LLC in ordcr to develop the commcrcial element of the project. In order for this elemcnt of the redevelopment to procecd, it is necessary for the two partics to execute an "Assignment and Assumption" agreemcnt (the "Assignmcnt") in order for the parties to comply with Article 8 of the Redevelopment Agreement. The Assignment provides that if approved by the EDA, Grand Central Commons, LLC will then be responsible for completing construction of thc commercial element of the project in accordancc with the identificd requirements under the Redevelopment Agreement. In addition, if approved by the EDA, thc Assignment will release the Redevcloper from its obligations under the Redevelopmcnt Agreement as to thc portion of the Redcvelopment Property, the approximate two acres, sold to Grand Central Commons, LLC. 322812v1 MTN CL205.20 Therefore, if the EDA wishes to approve Grand Central Commons, LLC as the developer orthe commercial element of the project, the EDA should approve the provided resolution which authorizes execution of the Assignment. ee: Robert Streetar 322812vl MTN CL205-20 COLUMBIA IIEIGIITS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2007-24 RESOLUTION APPROVING ASSIGNMENT AND ASSUMPTION AGREEMENT TRANSFERRING CERTAIN RIGHTS AND OBLIGATIONS IN THE CONTRACT FOR PRIV ATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND GRAND CENTRAL PROPERTIES, LLC, TO GRAND CENTRAL COMMONS, LLC BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority and New Heights Development, LLC (the "Redeveloper") entered into a Contract for Private Redevelopment dated September 22, 2003, as amended by First Amendment thereto dated April 26, 2005 and a Second Amendment thereto dated November 22, 2005 (the "Contraet"), setting forth the terms and conditions of redevelopment of certain property within the Redevelopment Project, generally located east of Central Avenue, between 47'h and 49th Avenues. 1.02. New Heights Development, LLC changed its legal name to Grand Central Properties, LLC but in all respects remained the Redeveloper under the Contract, with the result that the Authority approved a Third Amendment to the Contract, approving Grand Central as the Redeveloper and modifying certain obligations of the Redeveloper in the Contract. 1.03. The Redeveloper has procured a Subdeveloper lor the Commercial Property described in the Contract, and seeks to transfer the Commercial Property and obligations related in the Contract thereto to the Subdeveloper. 1.04. The Board has reviewed an Assignment and Assumption agreement (the "Assignment") between the Redeveloper and Grand Central Commons, LLC (the "Subdeveloper") providing lor the assignment of the rights to develop the Commercial Property to the Subdeveloper, with the Subdeveloper assuming certain obligations of the Redeveloper under the Contract relating to the Commercial Property as identilied in the Assignment, amI finds that the approval and execution thereof and performance of the Authority's obligations thereunder are in the best interest of the City and its residents. Section 2. Authority Approval; Further Proceedings. 2.01. The Assignment as presented to the Board is hereby in all respccts approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be eonelusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Assignment and any documents referenced therein requiring execution by the 322780v2 tvITN CL205-20 Authority, and to carry out, on behalfofthe Authority its obligations thereunder. Approved by thc Board of Commissioners of the Columbia Heights Economic Developmcnt Authority this 23rd day of October 2007. President- Gary L. Peterson ATTEST: Secretary-Cheryl Bakken 3227ROv2 MTN CL205-20 DRAFT 10116/07 ASSIGNMENT AND ASSUMPTION AGREEMENT THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Assignment") is executed and delivered by and between Grand Central Properties, LLC, a Minnesota limited liability company ("Assignor"), and Grand Central Commons, LLC, a Minnesota limited liability company ("Assignee"), as of , 2007 (the "Effective Date"). Assignor and Assignee arc referred to collectively in this Assignment as the "Parties." RECITALS A. Assignor, as successor in interest to New Heights Development, LLC, together with the Economic Development Authority of the City of Columbia Heights, Minnesota, a Minnesota public body corporate and politic (the "EDA"), entered into that certain Contract for Private Redevelopment Agreement datcd September 22, 2003, as amended by First Amendment thereto dated April 26, 2005, a Second Amendment thereto dated November 22, 2005 and a Third Amendment dated August 28, 2007 (the "Redevelopment Agreement"), in connection with the redevelopment of certain real property located in the City further defined therein (the "Redevelopment Property"). Unless otherwise provided in this Assignment, all capitalized terms used herein shall have the meaning assigned to them in the Redevelopment Agreement. B. Pursuant to Article IV of the Redevelopment Agreement, Assignor is obligated to undertake certain redevelopment activities in connection with the Development Property (including, without limitation, the construction of certain Minimum Improvements thereon); and, pursuant to Article VIII of the Redevelopment Agreement, Assignor is permitted to transfer portions of the Redevelopment Property to a Subdeveloper upon the written approval of the EDA, and to assign certain rights and obligations under applicable provisions of the Redevelopment Agreement to such Subdeveloper in connection therewith. C. The Parties entered into that certain Purchase and Sale Agreement dated as of March 26, 2007 (the "Purchase AgreemenC), pursuant to which Assignor agreed to sell and Assignee agreed to buy that certain portion of the Redevelopment Property legally described on the Exhibit A attached hercto and incorporated herein (the "Commercial Property"). D. Assignor possesses all right, title and interest in and to the Commercial Property pursuant to the Redevelopment Agreement and now desires to sell, assign and transfer to Assignee the following rights and obligations under the Redevelopment Agreement in connection with the Minimum Improvements allocable to the Commercial Property (the "Transferred Obligations"): I. Article II, Section 2.2 [Representations and Warranties of Redeveloper], except Subsection 2.2 (i) thereot; 322796v2 MTN CI ,205-20 2. Article III [Propcrty Acquisition], except Subsections 3. Land 3.4 thereof; 3. Article IV, except the obligations in those Subsections therein which specifically reference the housing component orthe Minimum Improvements; 4. Article V [Insurance]; 5. Article VI [Taxes] 6. Article VII I Financing]; 7. Article VIII [Assignment and Transfer; Indemnification]; 8. Article IX [Events of Det~lUlt]; and 9. Article X. E. Assignee desires to assume the Transferred Obligations under the terms and conditions hereinafter set forth. F. The EDA has consented to the transfer of the Commercial Property and the assignment and assumption of the Transferred Obligations by Assignor to Assignee. ASSIGNMENT AND ASSUMPTION NOW THEREFORE, FOR GOOD AND VALUABLE CONSlDERA TION, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: I. Assignment. Assignor does hereby sell, assign, transfer, convey, set over and deliver the Transferred Obligations to Assignee. 2. Assumption. Assignee hereby accepts the foregoing assignment and transfer of the Transferred Obligations and promises and agrees to assume all liabilities of the Transferred Obligations, and faithfully perform all covenants, stipulations, agreements and commitments thereto appertaining. 3. Release of Assignor. As of the EITective Date, Assignor shall be released ii'om the Transferred Obligations by the EDA. 4. Binding Eftect; Governing Law. This Assignment shall be binding upon and shall inure to the benefit of the Parties hereto and their respective successors and assigns. This Assignment shall be governed by, construed and enforced under the laws of the State of Minnesota. This Assignment shall only be eITective and shall be contingent upon the consent of the EDA, in writing below. The Parties shall execute and deliver such further and additional instruments, agreements and other documents as may be reasonably necessary to evidence or carry out the provisions of this Assignment. 322796v2 MTN CL205-20 2 5. Counterparts. This Assignment may be executed in any number of counterparts, each of which when so executed and delivered shall constitute an original, but together shall constitute one and the same instrument. [Remainder of page intentional~v lefi blank, Signature Pagesfollow) 322796v2 MTN CL205.20 3 DRAFT 10/16/07 ASSIGNOR'S SIGNATURE PAGE FOR ASSIGNMENT AND ASSUMPTION IN WITNESS WHEREOF, the Parties hereto have executed this Assignment as of the EIJective Date, ASSIGNOR: GRAND CENTRAL PROPERTIES, LLC By: David N, Kloeber, Jr. Its: Principal STATE OF MINNESOTA ) ) ss, COUNTY OF _____) The foregoing instrument was acknowledged before me this day of ,2007, by David N. Kloeber, Jr., a Principal of Grand Central Properties, LLC, a Minnesota limited liability company, on behalf of the company. Notary Public 322796v2 MTN CL20;-20 DRAFT 1011 6/07 ASSIGNEE'S SIGNATURE PAGE FOR ASSIGNMENT AND ASSUMPTION IN WITNESS WHEREOF, thc Parties hereto have executcd this Assignment as of the EtTeetive Date. ASSIGNEE: GRAND CENTRAL COMMONS, LLC By: Ehtesham Khoyratty Its: Principal STATE OF ) ) ss. ) COUNTY OF The foregoing instrument was acknowledged before me this day of ,2007, by Ehtesham Khoyratty, a Principal of Grand Central Commons LLC, a Minnesota limited liability company, on behalf of the company. Notary Public 322796\'2 MTN CL205-20 DRAFT 10/16/07 CONSENT OF EDA The EDA hereby consents to the foregoing Assignment on the terms set forth above. This consent shall not be construed as a consent to any future assignment of all or any portion of the interests and obligations ofthe Assignor under the Redevelopment Agreement, whether to Assignee or any other Subdeveloper. Dated: ,2007 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, COLUMBIA HEIGHTS, MINNESOTA, a Minnesota public body corporate and politic By: Gary L. Peterson Its: President By: Walter R. Fchst Its: Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before mc this _ day of ,2007, by , and__ ' the President and Executive Director, respectively, of the Columbia Heights Economic Development Authority, a public body politic and corporate, on behalf ofthe Authority. Notary Public 322796\'2 MTN CL205-20 EXHIBIT A Legal Description of Transferred Property Outlot C and Outlot D, Gmnd Central Lofts, City ofColulllbia Heights, Anoka County, Minnesota ~ I I J.OO I Vl -l ::t> -l 1\1'1 Ct. -l ~;;U ::1~" ~^ ~ :5 ......IE >-< N ~ <I ~~ ~-< ,""Z ,0 (]\ Ul ;6"E z - 0 o N -1>- -I> I co: (Tl 1 .-1> 'm o ~ ~I 30 10 foot wid.. Ens..",en't -to NSf' for drlvewny purposes. DOCUMent 11282269 L 285901 -+L S89'36'S7"E 277.60 -~7.60 OUTLOT D tVSJ~/ ;oJ'3%,;]:/ ',. . 9<'J'5 o C -I r o -I )> NB9') 47 DRAINAGE AND UTILITY EASEMENT OVER ALL OF OUTLOT A z o o oJ ~ .: m ei ~ S89'J5'12~E 162.90 t;: co ~'" e=,. ~~I~ ,.~ ~~ I... 90 ~ - - -l ~ DRAINAGE AND / ~O~S:SEME~ :.!~ ~ 0 J30~" g ~,' .~. 1 ~~~~ - r-:;~ ':' (:' ,,~N. !::: ~ . 8tv -~ ~~I~ '/1 . '" n'f:~ ~~ ) :> _ t,;'g I 0 ~~ .t~ ~CJl \ ' I i1 :~c""~: 1 ~: I" ...... ~ 1 ,;i: 1 , '\. '- "- " /<l't\,.... 25 I 25 ~ 30f "'''.~ r"1 m ~~;:;~~;~o"E 203.00) ~I ~ I 'f: -\,1- SOO'24' 48"W _ 6.00 _ 4711-1 '" " ~ o p o o JOfr r-- Nil !&.~ ~-~ (m 1- l I '-.. I I I 25 25 N N, ~ "'I m~ . N ;t ~I co -n e=,. ::::jZ -<,. j:~ m,. '"z :;0 z ~ "I L " o ~ , ~ I 20 ~ leD ~ ~'" ls~ -<,. I~g m,. ~z l~o (8 o It I; ~ m l~ I 1 1 I" J 2 C C , > . o " , a " " 2 N89'J5'12MW 188.86 " o DRAINAGE AND UTIUTY EASEMENT OVER ALL OF OUTLOT A .All " THE NORTH LINE OF THE SOUTH 24.00 FEET OF T~E .............. N\oIII4 []F THE S\o'I/4 OF SEC. 25, L 30, R. 24 ~ o 32279(iy2 lvrrN CL205~20 AVENUE ""TFir: t>I J;: SW. EXHIBIT B Transferred Obligations I. Article II, Section 2.2 [Representations and Warranties of Redeveloper], except Subsection 2.2 (i) thereot; 2. Article III [Property Acquisition], except Subsections 3.1, and 3.4 thereof; 3. Article IV [Construction of Minimum Improvements),except those Subsections therein which specifically reference the housing component of the Minimum Improvements; 4. Article V [Insurance]; 5. Article VI [Taxes) 6. Article VII [Financing]; 7. Article VIII [Assignment and Transfer; Indemnification); 8. Article IX [Events of Default]; and 9. Article X.[Additional Provisions). 322796v2 MTN CL205-20 Nelson Building & Development (NBD) is a commercial design/build general contractor with a focus on meeting the needs of our clients by offering a wide range of construction related services. These include architectural and engineering design, realty, real estate development, and construction. We are committed to listening and understanding our client's needs, providing a professional and experienced staff, and dedicating ourselves to the successful process and completion of your project. If you're looking for a company that will go beyond what is expected and strives to be the best, you've discovered one with Nelson Building & Development, because we are about Building More Than Just Buildings... Nelson Building and Development 2 Division StreetE. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com Our MISSION Building more than just buildings... Our VISION Nelson Building & Development will continue to stand apm1 and grow by continuing to raise the standards for architectural and construction services. We commit ourselves to providing extraordinary services that will have a profound, positive and meaningful impact on our clients, our subcontractors and consultants, the members of the NBD team, our community and all of the people we serve. Our VALUES Nelson Building & Development promises to earn and keep your trust. . We promise to aggressively seek out clients, subcontractors, suppliers, consultants and employees who conduct themselves in a trustworthy manner. . We promise to establish clear and reasonable expectations based on our knowledge and experience, and will work diligently to exceed those expectations. . We promise to never put possible financial gain ahead of maintaining our honesty and integrity. . We promise to openly admit, accept responsibility for, correct, and learn from our mistakes. . We promise to commit no act that could jeopardize the trust given to us. Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682.] 818 www.NelsonBuilding.com NED was founded in 2002 by Pete and Rochelle Nelson. After almost twenty years of working for a large general contractor in the Twin Cities area, Pete decided it was time to fulfill a longtime dream of starting his own construction company. NBD quickly gained a reputation for providing an array of high quality construction services to our clients. This success is a result of a straight forward business style, uncompromising values of honesty and integrity, and by keeping trust in the forefront of our business relationships. Pete Nelsol/ Since NED's inception we have diversified the range of services we provide by starting a real estate company, Nelson Realty, to provide a full range of real estate services, We have also added architectural capabilities within our operation to provide authentic design-build services to our clients. One of NBD's greatest assets is the high quality people that have become a part of the NBD team. Our staff is made up of highly qualified and experienced people that know what they are doing, love what they do, and enjoy who they are working with. This equates to a high level of service delivered to our clients. NBD is based in Buffalo, MN and has completed numerous projects in the surrounding area. We have also completed projects in the out~state area and in the metro and are capable of working anywhere our clients need us to go. In our short history we have completed several churchesl banking facilities, retail buildings and complexes, distribution centers, manufacturing facilities, private and public schools, and assisted living and senior care centers. From renovation work to new construction to design-build, no project is too small or too big for us to handle. Nelson Building and Development 2 Division Street E. Suite 201 Buffalo,!v1N 55313 763-682-1818 \Vww.NelsonBuilding.com \Ve know there are other contractors who could build your project, but we also know you expect more than just a finished product. With Nelson Building & Development you'll discover high quality craftsmanship, on-time delivery, and the highest value for your capital investment. At Nelson Building and Development, we are committed to the following: Having the Right Attitude V\'e believe each project takes on iCs own personality and it is absolutely critical to approach our work with the right attitude. We strive to have an attitude of eagerness, teamwork, cooperation, and problem solving. We take an open and honest approach with each person involved in a project. We believe that when these things are achieved, the building process can be an enjoyable experience that will translate into a successful project. Providing Experi8f1Ce With Nelson Building and Development, you can be assured that your project will be managed by an experienced professional. Our team understands; architecture, complex building systems, materials, and techniques. We exercise a variety of methods to make sure everyone working on a project understands the expectations and has the expe11ise to meet them successfully. Complete Dedication \Ve are committed to providing the best possible constmction service available and making sure the project is done right. We do not compromise quality for dollars or let schedules slip, and we work with clients to control project cost. BuHding Long-Lasting Relationships We look at every project as an opportunity to build a relationship that will last, thus our vision statement of Building i\1ore Than Just Buildings was created. For us, becoming a client's "prefelTed builder" is the highest honor we can achieve. \Ve eagerly look for opportunities to earn the privilege of becoming the construction services provider for our clients, not only on one specific project, but for all future projects they may have, Nelson Building and Development 2 Division StreetE. Suite 201 ButTalo, MN 55313 763-682-1818 \vww.NelsonBuilding.com General Contracting Our general contracting services range from small tenant buildMouts up to new multi-million dollar ground-up buildings. We offer negotiated, public bid and private invited bid pricing for projects. We have a proven record as a competitive, high-quality contractor. Design/Bui!d PrDjects Save money, shorten your delivery time and have single-source responsibility for your entire project with our design/build services. We have in-house architectural capabilities for any size project and have relationships with numerous engineering firms who partner with us to create the right team to meet your needs. J~ "t~~JI(",s~:c,.JNt o. ,JlR:EA"~TY ReaiEstate<'lervlces Through our sister company Nelson Realty we are able to expand our ability to meet our clients needs. With this new company we now offer property leasing, property sales, tenant representation, buyer representation, investment sales and land acquisition to our list of many services offered. CnnstrlJctiofl Management We can provide full management services on any project ranging from schools to city projects to private projects. Many times construction management provides added benefits to the owner. Build/lease Projects If you are tired of paying rent or need a new facility but don't want to tie up your working capital, we can work with you to establish your facility needs, find the right location, construct your new facility, arrange a lease and offer you an option to buy over time. Building 8 Site Analysis For those who own an eXIstmg building or property and are not sure what to do with it, we offer both building & site analysis. We inspect and analyze the building, analyze building sites to determine proper zoning, soil conditions, traffic patterns, and value. Then provide detailed reports with conceptual designs as well as estimated costs to move forward with your project. PrapertyOevelopment If you own property and need professional help developing it, our team will work with you to create feasibility studies, preliminary site planning, and building plans. We also search out potential users, work with you to put together financing, and provide construction services. Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682~1818 www.NelsonBuilding.com lISafety Matters......Just Ask Your Family" is more then just a cute slogan within NED. This slogan developed early in the histOlY of the company captures what safety is all about at NBD. We want everybody to go home at the end of the day, uninjured! Since inception NBD has brought this attitude to bear when analyzing, developing and implementing our safety program. We understand that our industry can be a dangerous environment and over the years we have taken numerous proactive steps in regards to safety. In our second year of business we assigned Jeff Jergensen to become our Safety Director. Since then we have implemented numerous things to ensure safe worksites such as Daily Site Inspections conducted by our superintendents, a proactive approach to Tool Box Talks, a simple and practical way of handling MSDS information on our sites, NBD Jobsite Rules posted on all our sites, a simple and practical policy in regards to Personal Protection Gear, reporting and learning's from liNear Misses" immediately after they occur, Intense and Strategic Training of all our personnel and numerous other policies and programs designed to be a positive, practical and proactive instead of reactive to ensure all the workman on our sites do go home uninjured at the end of the day. The result, to date we had yet to have a time loss injury on any of out sites! To be a first class contractor you have to perform at the highest level in all aspects of the industry. Our safety policies, programs, implementation and commitment to keeping our sites safe is another testimony of how we do things at NBD. Pete Nelson President/CEO Jeff Jergensen Safety Director Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, i\1N 55313 763-682-1818 www.NelsonBuilding.com ./>. River City Entertainment Center - MQntic8l!o, MN Nelson Building & Development has been selected by L & P Ventures, LLC as the builder for their 61,000 bowling and entertainment center to be located on School Blvd in Monticello, NIN. Pope Associates, Inc. of St Paul, MN is the project architect. The facility includes 36 Brunswick bowling lanes, with expansion space for 6 additional, mini-golf, amusement arcade, multiple bar/restaurant areas, a full commercial kitchen, locker areas, and business offices. The design consists of architectural pre-cast concrete walls with a steel bar joist roof system. Construction began in April 2007 with a completion expected by October. Annandale Health C~ Community Smices Annandale Care Center'-Annandale. MN The Annandale Care Center has selected Nelson Building & Development as the construction manager for it's three part renovation project. Phase one expands the existing dining room and serving kitchen as well as adding a new loading dock and garage, Phase two is the addition of three new memory care wings, The final phase adds a swimming pool, a therapy pool. locker room and exercise room. All three phases will greatly enhance Annandale Care Center's ability to serve the people of the community. ~ ~ ~ THE National Bank-EaQan, MN This repeat client wished to add a branch bank in Eagan, Minnesota. The purchased a 2.56 acre commercial site and from that Nelson Building & Development created three tots, one for the bank Tlietl3tiOllalBaIl~ d h fi fi d I ('bl an two at ers or uture eve opment pOSSI e ~ retail and coffee shop). ~ The bank facility will consist of 5,572 slf. The building is proposed to be constructed with a base of ~ decorative concrete block and manufactured stone accents, with the remainder of face brick with Q~ aluminum windows and storefronts, The central portion of the structure provides a tall, sloping vaulted ~ space, standing seam metal roof and clerestory windows providing natural light to the central core and ~. teller area. The drive-through pOllion of the facility is located to the nOllh providing three teller lanes ~ and a lane for an automated teller machine; the drive through is covered by a canopy stlUcture constructed of materials similar to the building. Consh'nction is scheduled to begin in July 2007. Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com Monticello Dental Clinic-Monticelio, MN Nelson Building and Development is the Design/Build contractor for a 6,400 s/f dental clinic just north Monticello, l'l,'fN, This new 14 chair clinic will boast leading edge teclmology coupled with warm design and finishes to create an atmosphere both professional and appealing. The structure of the building draws upon influences of the western US chalet style as seen in and around Jackson Hole, Wyoming. The interior operatories will benefit from indirect natural light drawn from the donnet's. The Monticello Dental Clinic will be scheduling appointments for their new location in the fall of 2007. Mankato House-Mankato, MN Nelson Building & Development was selected by The Thro Company as the General Contractor for this project that is the first phase of a possible three phase nursing home project. This phase currently contracted is a one story addition to a one story nursing home along with the remodel ofa complete wing of the existing facility. The architect for the this project is \V AI Continuum. selected as negotiated General Contractor for the new Kingsway Retirement Living facility. This addition will consist of 81 new units in a senior living community at the existing Lutheran Home Association Campus. The building is divided up into a 22 Assisted Living units; a 14 Dementia Living units; and a 45 Independent Living units with a mixture of one, two, and three-story units; wood construction, underground parking, all in one new building. The construction duration is anticipated to be 14 months with iCs ground breaking ceremony in April 2007, We look fOlward to working on yet another project with the architect, W AI Continuum. Nelson Building and Development 2 Division Street E. Suite 20 1 Buffalo, l\1N 55313 763-682-1818 www.NelsonBuilding.com ~ ~ ~J ~.'.... ~, ~""; . . , ~ ~ t @i ~i ~i ~ ~ ~ -, 1 ~ q~ ~ ~ ~ Sr. Jnh1\t~ Lutheran Church lIuli..I".MC" St. John's Lutheran Church -Buffalo, M11 St. John's Lutheran Church in Buffalo Minnesota is a beautiful stone clad church with the traditional narthex at the back of the sanctuary. The floor plan did not allow infonnal gathering after services. They were also struggling with a building that had been added to numerous times which made pedestrian circulation difficult and confusing. Even with the expansion of the narthex it was still difficult to draw people from the back of tile church to other ministries. Nelson Building & Development created a concept that opened up a new central gathering area on both floors that would provide room for informal gathering and solve circulation and spatial issues. A new Family Life Center is placed at the end of a path that creates order in the floor plan and opens up new possibilities for ministry. , . :C;'. .~ > . ./',- ~..,.,:., ~: ' .J-.:' ~r.'. Center National Bank-Plymouth, MN Schematic design and prewconstruction are underway, with construction start scheduled for late Summer of 2007. NBD has been selected as the builder to work with 101m Day Company, Center National Bank, Cressa Partners, and HTG Architects to design and build a new 7,000 s/fbank to be located at 37th Avenue and Vicksburg Lane in Plymouth, MN. The project will include site preparation of this 4+ acre parcel, with the bank being constructed on the NW 1 acre lot. "'- Servant of Christ-Champlin, MN Nelson Building & Development competitively bid and was awarded the construction contract for the Servant of Christ Lutheran Church addition in Champlin, The addition includes 5776 SF of new sanctuaty on the main floor and 5776 SF of new classroom space in the lover level. Scope of work also includes the renovation of existing nal1hex, common area, and ""_'~'I~~':::":'I"'I""I' offices, Project is scheduled to break ground June 2007, The project architect is Lampert Architects. Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com Asian Direct-Savage, MN Wright-Hennepin Ceoperative Electric Association - Rockford, Mil NED is in the construction phase of Phase II of this project. This phase consists of upgrades and remodeling to the majority of the building's office area with a complete redesign of the workstation layout utilizing "systems furniture". Phase I, completed last year, included the addition of an executive office suite and conference rooms. NBD is also beginning the design work on Phase III, which will include renovation of the dining area, the board room, lobby and other shared spaces. Phase II construction will complete by Fall or2007, with Phase III construction scheduled to start carly in 2008, Cantennial Gardans - Rosavilla, MN This exciting apartment rehabilitation project is scheduled to begin in August of 2007 with a completion in the winter months and con- sists of mostly exterior renovations including window and door replacements, new facades and parapets as well as some minor site work upgrades. A new wood framed single story Rental Office building will also be built to replace their existing. North .E.kYalioll Nelson Building & Development is the Design I Builder for this private business owner who has operated a successful Asian market in Richfield, Minnesota for the past ten years and is expanding into the south metropolitan area. The owner was looking for a company that could perform construction as well as architecture and who had experience in creating potential income by subdivision of the property. The building will house his Asian grocery at 15,000 square feet of area and three smaller tenant lease spaces ranging bet\veen 1,400 and 1,800 square feet. The building will be constructed primarily of concrete masonry construction with steel roof joists. The front facades will be a mixture of brick masonry veneer with manufactured stone accents, exterior insulation and finish system, pre-finished metal canopies, copings, and trim, and aluminum windows, entrances, and storefronts. ~ ~ ~ ~ ~' ~ ~ ~ ~ o~lJ ~ ~ @) Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, NfN 55313 763"682"1818 www.NelsonBllilding.com ~ ~ ~ ~ ~ ~ q~ ~ ~ ~ ~ ~ ~ ~ ) ~ q~lJ ~ ~ Eiim Homes - Buffa!o, MN EJim Care Inc. has awarded Nelson Building the 53,000 s/f addition to their existing Parkview care center, Based on successful past projects; Elim decided to negotiate solely with Nelson Building for this new 46 unit facility. \VAI Continuum's architectural design consists of a three story, wood framed assisted living center and a single story, steel framed community center. This project broke ground in the fall of 2006 with a completion set for the summer of2007. Northland Circle Office Bui!ding -- Brooklyn Park MN Nelson Building & Development was chosen to design and build this exciting new office building located in Brooklyn Park, MN. This Class A office building will have a threcKstory atrium and enclosed underground parking. Intended as a professional oftice building the owner and anchor tenant is a law finn. The building is designed and situated to fit the maximize the views of the watershed, Exterior building materials of burnished concrete masonry units and dark anodized aluminum frames with tinted glazing are chosen to match the vernacular of the modem office building. The front of the building in plan view will curve using the 152' radius from the center of the roundabout at the roadway intersections. That same radius will be used on the fi'ont of the building elevation to provide a stunning architectural element. Moon Motorsports- Monticello, MN Nelson Building & Development is the design/builder for the new 37,500 sq. ft. home of Moon Motorsports in Monticello. The project will be located along 1-94 frontage east of Highway 25. NBD's design team is working with the Owner and a nationally known "Power Center" planner to create an impressive shop, office and (&~~::_;~:: Moon showroom space. Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuildingcom ~ ~I ~ ~ ~ ~ ~ Q~lJ ~~'d . ~ MinnwBSt Bank- Champlin. MN We have now completed our 2nd exciting project for MilIDwest Bank! Nelson Building & Development was the architect and builder of this 5,000 S/F new bank facility on a highly visible property in Champlin, MN. The building consists of a main level and a mezzanine level conference area. The finishes are top quality creating a very elegant and inviting atmosphere. Cornerstone Church- litchfield. MN Nelson Building & Development and Station 19 Architects made up the design/build team for this new church facility located on the east side of Litchfield, MN. The new facility is approximately 20,000 S/F with a budget of about $2.5 million. This new facility for the First Baptist Church of Litchfield includes seating for 450, multi-purpose classroom space, kitchen, restrooms, classrooms, and nursery/toddler areas. The building is designed for easy and economical expansion as the congregation grows. Construction was completed in March of2006. Minnwest Bank- Minnetonka, MN A complete new banking facility located on the highly visible comer of Highway 7 and Williston Road in Minnetonka, MN. This is a three story structure concrete and steel frame construction. Exterior finishes include brick masonry and precast stone over metal stud back- up. Interior finishes include drywall partitions, tile, stone and wood casework. This premium facility will be Minnwest's showpiece for many years to come and was designed by HTG Architects. Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 w\\'W.NelsonBuilding.com Zion Lutheran Church Addition- Buffalo, MH Nelson Building & Development completed this $2.5 million 27,000 S/F addition onto Zion Lutheran's existing facility. NBD worked very closely with Matt Hall at Station 19 Architects and the church committee to complete this project on time and under budget! Canyon Grille - Eden Prairie, MH Nelson Building & Development was contracted to renovate the former Bilimhi Bay Restaurant in Eden Prairie, MN into a Canyon Grille Restaurant. The project consisted of a completely new interior finish and an updated exterior finish. The Canyon Grille Restaurant opened it's doors on schedule in August of2006. Annandale fire Station- Annandale, MN ~ ~ ~ ~ ~ ~ ~ ~ t)~~ ~ ~ This was Nelson Building & Development's first Construction Management (eM) project. Teamed up with I & S Architects and Engineers, Inc. this project became a reality for the City of Annandale. It's new 12,000 S/F facility is a precast structure, metal joists and deck, membrane roof, aluminum entrances and includes dispatch, offices, lounge area for EMT crew, meeting room and full accommodations for the Fire Crew. Construction began in August 2004 with a completion in February of2005. Annandale Town Center- Annandale, MN Nelson Building & Development has completed this 14,250 SIF retail center DesignMBuild project. The project is anchored by a 5800 SIP liquor store and is located and highly visible from Highway 55, adjacent to the 43,000 S/F Marketplace Grocery Store in Annandale. Exterior building finishes included a combination of rack face CMU, decorative brick, and EFrS. Nelson Building and Development 2 Division Street E. Suite 201 Buffalo,:MN 55313 763.682~1818 www.NelsonBuilding.com Pete Nelson President/Owner Pete has been involved in the construction business since his youth having learned the carpentry trade from his father, uncle and siblings. After a few years of working as a carpenter Pete attended and worked his way through Dunwoody College of Technology and graduated in 1983 with a degree in Architectural Drafting and Construction Estimating. UpOIl graduation Pete started his career in the commercial contracting business by going to work for a start-up commercial contractor based in the Minneapolis area. Over the next nineteen years Pete worked with that company and during the last 12 years Pete was Vice President responsible for overseeing all construction operations. Over his tenure Pete was actively involved in running and growing that business into a construction company with annual volumes of over $50 million per year. In the fall of 2002 Pete chose to start his own company, Nelson Building & Development, and is now fulfilling a longtime dream of owning and operating his own construction business. Pete and Rochelle enjoy working together and have been married since 1986. Together they enjoy the challenge of raising their three teenage boys and that seems to keep their lives very active. Pete enjoys traveling with his family, hunting, fishing, golfandjust spending time with family and friends. Pete is a member of Buffalo Covenant Church where he has served as an Elder. Rochelle Nelson Vice Presidellf / Owner Rochelle's experience in publication design, IT systems, and accounting is a great asset to NBD. She enjoys designing and helping develop ways to market and publicize NBD. Rochelle's responsibilities include the company brochures, helping assemble presentations, keeping the website current, and manning the front desk. Rochelle is involved in a variety of ministries at their local church. She has been involved in leadership and public speaking on both a local and national level, giving encouraging and challenging talks for women's events and retreats. Rochelle and Pete have lived in Buffalo since 1994 and love the Buffalo area. Together they enjoy running the construction business along with raising their three very active sons. Rochelle also enjoys traveling, reading, watercolor painting, walking, listening to music and just having fun. Mark Billstrom Vice President of Operations Mark's interest in construction sta11ed early, as a result of job site visits with his bricklayer Dad in the 1970's, and increased as they worked together years later in a custom masonry business. Several construction summer jobs later, Mark completed the financing of his formal education and was awarded a B.S. in Construction Management from North Dakota State University's College of Engineering & Architecture. Mark has had a diverse career in design and management with substantial experience as both builder and owner's representative. He has completed projects across the United States in commercial building construction, natural gas distribution, and telecommunications. Geographically, the majority of his experience is in the Chicago, IL area and statewide in Minnesota. Mark's greatest blessings are his wife and three sons. As a family, they like road trips, biking, home/yard projects, and movies. Westwood Community Church in Excelsior, MN is their church home. Mark also enjoys fishing, shooting sports and snowmobiling. Nelson Building and Development 2 Division Street E. Suite 20 1 Buffalo,:MN 55313 763-682-1818 www.NelsonBuilding.com Wayne [lam Vice President of Business Development Wayne has been involved with the construction industry in various positions since high schooL While in high school and college, Wayne worked for a local pre cast company and an asphalt paving contractor. Wayne graduated from college with a degree in marketing with a minor in aviation. In the early 1980's, he worked for an oil drilling company in Enid, Oklahoma doing marketing and investor relations. For the past 19 years Wayne worked for a national civil contractor with their COllJorate office located in Central Minnesota, After having held various positions with that finn, most recently as the Vice President of Business Development. Wayne joined the NBD team in 2003. He is responsible for expanding NBD's client base, developing client relationships and working with Pete to expand the business. He also has a real estate brokers license and works with Nelson Realty. Wayne and his wife Susan reside in Litchfield,:MN. They love to travel, spend with time with family and friends, and occupy themselves with their horses. They have two grown sons. Tim and daughter-in-law Megan reside in Indianapolis; Joseph is finishing a degree at the U ofM. George fantauzza Registered Architect, AlA Vice President of Design George started in the construction industry as a laborer in 1972, apprenticed as a carpenter and eventually owned his own construction and cabinet company. In 1982 he began his pursuit of an architectural degree graduating with honors with a Bachelor of Architecture Professional Degree from Montana State University in 1988. He was licensed as an architect in 1991 and has practiced architecture in MiIll1esota and Wisconsin ever since. George joined NBD in the fall of2004. His strength as an architect is that he sees both sides of an issue and works expeditiously to find appropriate solutions which fit the design parameters and also is within the established budget. Clients will quickly sense that he is uncompromising when it comes to protecting their project, always looking out for their best interest in quality of materials, life-cycle costs and design sensitivity, He adheres to the guiding design principal that "foml forever follows function" (Louis Sullivan) which results in buildings that are not only responsive to the client's needs but are inherently beautiful structures. George is a dedicated dad with a son and daughter that are the pride of his life. He enjoys time with the kids and working on home remodel projects. His hobbies include being a gym rat and singing and playing old rock and roll and the blues. Don 8erg Training & Development Coordinator Following his retirement from a successful career in corporate America, Donjoined our team to support and aid in the process of helping churches and Christian schools in their constructionlremodel endeavors. With his genuine care and concern he seeks to bring clarity and help to individuals and committees as they seek to take on such a task. His great people skills have been a terrific asset to the 1\TBD team. Don has also taken on the role of coordinating the training and development of the NBD team members. As we continue to grow it is vitally important that we stay on top and up to date in all our skill(s) training. We feel Don is just the man to keep us on track! Don and his wife, Jadynne, are in an exciting chapter in their lives. Splitting their home life between Florida and Minnesota, they are enjoying spending time with family and friends, especially their grandchildren, Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com Andy larson Project Manager I Real Estate Sales Andy graduated from N0l1h Dakota State University with a bachelor's degree in Construction Management. Since graduation Andy has gained a wide range of experience while working for a design build contractor in Central Mimlcsota . Andy's professional experience has ranged from estimator / project manager to field superintendent on a variety of commercial projects for owners of warehousing, manufacturing, and retail businesses. Andy also holds a State of Minnesota Real Estate Broker license. Andy's real estate experience has allowed him to represent clients interested in acquiring property suitable for building or leasing and assisting owners, tenants and developers through the permitting and development process. Andy and his wife Michelle have two young sons and a daughter. As a family they enjoy fishing, camping, and playing hockey. Andy and his family currently attend Oak Heights Covenant Church in Hutchinson. Mike Anderson Project j}/onager Mike first started building when he was sixteen. Under the direction of his uncle, Mike !eamed the carpentry trade in a small residential construction business. With this knowledge and skill, Mike put himself through college by working as a carpenter. In 1999, Mike graduated with a double major in English Literature and History from the University of Wisconsin - River falls. Since then Mike has gained additional experience in the field as a carpenter and eamed a degree in Architectural Drafting and Estimating from Dunwoody College. Mike resides in Buffalo with his wife Stephanie and their daughter Peyton. Mike enjoys spending time with his family and friends and continues his love of literature by reading voraciously in his spare time. lane Florek Project l}/anager After graduating from Minnesota State University - Moorhead in 1998, Zane received many valuable years of experience with a very reputable, full service genera! contractor in St. Paul working mainly on developing community, educational and religious facilities. His emphasis was in negotiated general contracting and design/build services to a diverse client base throughout the Twin Cities area. Zane enjoys sUlTounding himself with a team of dedicated professionals at NBD who have a passion for building structures of superior craftsmanship, attention to detail, and maintaining a commitment to personal integrity. Tfhe's not sailing in the fresh water lakes of the Midwest or the blue waters of the Caribbean, then there is a good chance he is plmming his next sailing vacation. Zane enjoys living in Eden Prairie and commuting to the smaller Buffalo community. Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, J\1N 55313 763-682-1818 www.NelsonBuilding.com Jacob Ullery Project kJanager Jake became involved in construction at 15 years old when he began working as a laborer framing wood basements for a local home builder. Throughout high school and college, he spent summers working in the concrete/masonry, framing, cabinetry and electrical trades. Aside ii-om achieving a diverse portfolio in the field, Jake has gained eight years experience in estimating and project management with negotiated, design/build, and hard bid commercial projects. Jake and his wife Stefany call Buffalo their home. They enjoy home improvement and gardening/landscaping projects. They also love getting out of to\\'11 to find new adventures such as camping on the St. Croix, navigating through islands of Lake of the \Voods, or winter wilderness snowshoeing on the North Shore. Dan fair LNH, CALA Senior Housing Specialist Dan Fair joined NBD in May 2007 to serve as their Senior Housing Specialist. Dan came to NBD with extensive experience in the development, construction and operations or various fonns of senior housing over the past 25 years. His main role at NBD is to work with various health care professionals to investigate, develop and implement various types of senior housing and services (new & renovated LTC communities, Independent Living, Assisted Living, Memory Care, Cooperative Living, Town Home communities) in select campuses in Minnesota and other states. Mr. Fair received his Bachelor of Al1s degree in Communications at Bethel College in St. Paul, MN, became a licensed long-teml-care administrator in 1982, and is a nationally certified through the American College of Health care Administrators for both long-term care administration and assisted living. Dan and his wife Andrea have been residents of the Delano area since 1982. after raising their two sons and a daughter in the area, they continue to remain active in their community through love, INC., church music ministry and youth ministry at Village Free Church. They also enjoy traveling to see their children who live outside ofMN. Dan enjoys hunting, fishing, trips to the BWCA and gardening. Bruce Bechtold Accountant Bruce graduated from the Academy of Accountancy in 1984 and made his start in the accounting world working for a general contractor in Minneapolis. While his career has remained focused in the construction industry for over 20 years, he has been involved with developmental and property management accounting, human resources and over six computer system conversions. After spending many summer weekends on Clearwater Lake, Bruce and his wife Robin decided to make it permanent and moved to the Annandale area with their three children in 1994. He has been active with children's ministries and is currently serving at A.llnandale Evangelical Free Church. With a busy lifestyle of raising children, Bruce finds time to enjoy landscaping, music, camping, home remodeling and spending time with family and friends. Nelson BuHding and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682.1818 www.NelsonBuilding.com Cor8Y Brunton Registered Architect AlA, CID Corey knew he wanted to become an architect since he was seven years old. Af- ter attending related classes at a local community college during his high school years, Corey attended North Dakota State University to further pursue his dream of becoming an architect. While attending college, he began working for a local architectural design film in Fargo as a part time intern and graduated from there in 1993 with Bachelor degrees in Environmental Design, Architecture, and Interior Design. Immediately after graduation, Corey accepted a full time position with an engineering and architecture firm in Albert Lea and moved to Austin to set up their home. It was there that his two children would be born, Tyler and Ashley. In 1999, he was asked to join a 20 person E&A firm in Mankato, IvfN to head up the architectural design department. The 20 person design finn quickly grew to 90 persons in 2006 and added Interior Design to the list of design ser- vices. Through the many years of his directorship, he acquired design skills needed to design churches, banks, fire stations, office buildings, and manufactur~ ing facilities, to name a few. Corey has been an active member of the community and is a commissioner for the North Mankato Planning & Zoning Board. Corey, his wife Cheryl and their two children reside in Mankato where they are very active in their home church, Hill- side Assembly of God in Mankato. In fact, Corey is involved in the worship team as their drummer and a singer. A few leisure time activities he enjoys are; fishing, snowmobiling in the mountains, volleyball, softball, and hunting wild game. St8ve Binek Project Architect Steve brings thirty plus years of architectural practice, managing projects of any building lypes, including churches, commercial office, retail, motion picture theaters, warehousing and storage, manufacturing and process, medical, and hospitality. He received a vocational degree in architectural drafting prior to attending the School of Architecture at the University of Wisconsin, Milwaukee and was licensed as an architect in 1992. He has participated on projects throughout the country fonn New York to Califomia and Minnesota to Texas. Steve joined NBD in the fall of2005 and brings the ability to translate building design to construction contract documents, incorporating a solid knowledge of building materials, codes, and construction methodology. His exposure to many types of buildings allows him to interface and anticipate clients needs to assure a finished product specifically tailored to the needs of the user. Steve and his wife, Leslie live in Plymouth with their two teenage sons. They are involved in the leadership of their church, Ramsey Cornerstone Church in Hopkins, and Steve is a teacher at Life Christian University and Seminary where he is pursuing his D.Min. in Theological Studies as well as participating in jail ministry through Missionary Evangelism to Corrections. Eric Munt Project Engineer Eric entered the construction industry by attaining an Associates Degree in CAD Technology from Northwest Technical Institute. He has worked as a CAD teclmician for prominent architectural and structural firms around the Minneapolis area. Eric is currently working towards a Bachelor's degree in Construction Management at the University of Minnesota. Eric lives in Golden Valley with his wife Bridget and daughter Madeleine and son Mason. He enjoys spending time with his family, hunting, fishing and dirt biking. Nelson Building and Development 2 Division StreetE. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com Jeff Jergensen Safe(~1 Director Jeffgraduated in 1981 from the University of Wisconsin - Steven's Point with a degree in teaching (Math and Coaching). Jeff has been a teacher, a coach, an insurance underwriter, an account analyst and computer software specialist. Jeff has continued to add to his skills and background with continuing class- foom coursework in construction as well as job responsibilities which in- clude project administration, company safety director and mentor, and office VI support specialist. Jeffs wide ranging experience, maturity and his eagerness to learn and sup. port the team makes him a very valuable asset to the project, design and marketing teams at NBD . Jeff and his wife Mary Ann live on a hobby [81m outside of Buffalo with their three sons. Their lives are filled with the pursuit of sports, music, gar~ dening, and of course "the chores". Jeffis currently an active member at Buffalo Covenant Church. Cheree' EJJen Project Engineer / Real Estate Sales Cheree started working in the construction industry in 1990 as a quality control inspector for a residential builder. In 1998 she made the switch to commercial construction. Cheree has also attended several classes at Dunwoody. Cheree's knowledge of construction ranges from estimating to accoullting. Her varied experience coupled with her willingness to learn makes her a valuable member of our team. She has also acquired a realtor's license and assists in Nelson Realty. Cheree and her husband Donn live on a hobby faml in Andover, MN. Between them they have 2 sons and 1 daughter. They enjoy playing music, motorcycling, hunting and fishing. Cheree is a Bible study leader for Women's Ministry at Constance Evangelical Church in Andover. Leanne Rumsey Project Engineer Leanne got her first taste of the construction world from being the daughter of a general contractor. First lesson leamed: don't look at the arc when someone is welding. After high school Leanne attended Northwestem College where she graduated in 2003 with a double major in Christian Education and Bible. Although she never thought she'd follow in the construction footsteps of her father, she found herself with the opportunity tojoin a great team of people at NED. Leanne is a great addition to the team with her attention to detail and strong desire to succeed. Leanne lives in Buffalo and enjoys reading, writing, sports, the great outdoors, and spends as much time as she can with her family and playing with her five little nephews. Leanne is also active in the youth ministry at Buffalo Covenant Church where she assists part time. Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, i\1N" 55313 763-682-1818 www.NelsonBuilding.com Darin Botts Design Production lv/allager While attending Hennepin Technical College to eam his architectural drafting degree, Darin worked at a lumber yard selling building materials. Over the past 15 years, Darin has worked in both the residential and commercial fields of architecture; working on projects ranging from single family homes (valued in the multi million dollar range), to industrial and large university buildings. While facing challenges on these projects, he found a great sense of accomplishment in finding creative and efficient ways to solve technical design issues for the owners. Darin delights spending his free time with his wife, Lynn, and their young children Chloe and Noah. He enjoys working on home improvement projects and restoring his motorcycle. Darin and his family are active members at Community of the Cross Church in Hopkins. Sean Schmitz CAD Technician Sean began his career in architectural drafting in 1997, but had a love for architecture in his early high school days. Sean attended classes and eanted his architectural degree from the Minneapolis School of Drafting. He has since acquired close to ten years experience in the drafting field, first working for a major architectural finn and in 2003 starting his own independent drafting service, where he offered both residential and commercial drafting services. Sean and his wife Tara and their three children reside in Maple Lake. Sean enjoys spending time with family and friends and has a great love of the outdoors. Sean also enjoys fishing, playing volleyball and golf, and volunteering as his son's Cub Scout den leader. Sean is excited to be a part of Nelson Building and Development, Inc. and looks forward to providing excellent service to meet all team and client needs. Bryan Platisha CAD Technician In 2003 Bryan graduated from Dunwoody College of Technology with a degree in architectural drafting and estimating. After college he went to work in a local1umber yard where I designed new homes, remodel and light commercial projects. After 2 years he became a truss designer at a local truss company, but was laid off after a year due to a slow down of residential building. Bryanjoin the commercial construction industry in 2006 working with an engineering firm working on a wide range of projects from Bio-diesel plants to grain elevators. Bryan lives in Montrose with his wife Jocelyn and there puppy Lola. I love playing golf in the summer every chance I get. I enjoy playing tellllis, hockey and hunting. In the past I have volunteered in Hutchinson, MN as a coach for hockey and tennis and hope to be able to do more in the future. Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com .~, .....~ .~ l"~' .~.no ~..~~..~... ~~., .~~ .~ u.~_. .... .~....,... Oel Wingenter CAD Technician Del started in the construction industry while still in high school. He worked evenings and weekends doing commercial construction. Del enjoyed field work and sought to learn more, He attended MiIll1eapolis Drafting School and eamed a degree in architectural drafting. Upon graduation, took ajob in the fire and water restoration field. Eventually, joining a large architectural group and worked on projects like the new Best Buy Corporate Headqumters in Richfield and Raynor Library at Marquette University and became adept in AutoCad. Del enjoyed drafting, but wanted to be more involved in the day to day field activities, so he took a position as a Project CoordinatorlField Inspector. He has since found a home with NBD in the fall of2004 where his primary duties are Architectural Drafting. Del enjoys playing softball, football and volleyball, but his first love is snowmobiling. You will find him on most winter weekends bouncing around the white drifts on his snowmobile. Gnnis Mabin Field Superintendent Chris started in the construction industry leaming the trade from his father. His eIuoyment of the craft lead him to pursue remodeling work, right out of high school. For six years he worked in residential before switching to commercial. Within 9 years, Chris has gone from carpenter to foreman and on to superintendent. He has worked on a variety of job sites. Chris and his wife, Jessica, live in Otsego with their 3 boys, They like to spend time doing outdoor activities like camping, swimming and biking. They are active members at Osseo United Methodist Church where Chris serves on the Board of Trustees. He is also a member of the men's group and is active in discipleship ministry. Bnian Nickolauson Field Superintendent Brian started in the construction indusny in 1977 as a carpenter and lumber salesman eventually managing lumber yards and in 1991 stalted his own company building custom homes. In 1997 he began supervising commercial construction projects, including strip malls, a health club, clinic, bank, nursing home, funeral home, 75 unit apartment, and more. Brian finds it rewarding being patt of a team that brings a building from inception to successful completion, and enjoys refining the process and building relationships along the way. Brian received a degree in Industrial Psychology from the U ofM and has taken many courses in construction and construction safety. Brian and his wife Tracy, live in the Clearwater area with their 3 children who keep them very busy. In their spare time they enjoy being outside, on the lake, on the slopes, or on the trails. Brian and his family are very active in various ministries at Rejoice Lutheran Church in Clearwater. Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com Gerry labau Field Superillfende1ll Gerry's interest in building and making things with his hands began as a young man growing up in Minnesota. By the age of 17 Gerry was working for Independent Lumber Yard, Inc. in Monticello, NIN. His life took him to many locations around the United States working in the oil exploration industry, civil engineering and residential construction. After returning to Minnesota, Gerry worked as a production manager for S.H. Clausin until 1999 . After a short stint nUUling his own business he returned to the construction industry in 2002 and joined NBD in 2003. Gerry and his wife, Margo, live in the countI)' near Monticello and have two children, Joshua and Katie. In his spare time Gerry enjoys hunting and tournament fishing. Dan Iskierka Field Superintendent Dan started in the construction business as a bricklayer and was a member of the Local #2 for over eight years, In 1985 he started his own concrete and masonry business which he ran for 14 years, In 1999, Dan made the transition into general contracting, Dan was a project superintendent for numerous design/build projects in the Blaine area, Dan resides in Big Lake and has two grown boys and a young daughter. He has been very active in coaching as his kids have grown up and remains very involved in their sport activities. He enjoys not only coaching, but pal1icipates in numerous sports himself. Dan is an avid snowmobile rider and enjoys all outdoor activities and any new challenges that come his way. Chad Reitmeier Field Superintendent Chad started out as a laborer in the construction industry while in college. After completing an Associates of Arts degree and a degree in Physical Damage Appraisal and Claims Adjustment, he went on to work as a licensed insurance adjuster for a few years, In 1995, he returned to construction and spent the next II years working in sales and project management for a builder of post frame buildings, Chad joined NBD in September 2006 and is thrilled to be faced with the new challenges this opportunity has presented. Chad and his wife, Deb, live in Annandale with their sons, Ethan and Alex. Besides trying to keep up with his very active two year old son, Chad likes spending time outdoors. He enjoys four~wheeling, snowmobiling, fishing and hunting. He and his family are members of Zion Lutheran Church in Annandale, Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com Terry Hoyel Field Superintendent Terry started in constmction right out of high school tending block for a home builder which eventually brought an opportunity his way to work for a commercial constmction company. As a construction laborer Terry worked on a wide variety of jobs across the metro area. He then became a foreman of a concrete crew and ran jobs for projects such as Regency Hospital and Excel Energy Center. After a shoulder injury and surgery to repair it, Terry reentered into commercial construction as ajob superintendent where he ran jobs ranging from lOOk to 4.5 million. He joined the NBD team in October of 2006 and said he is honored to be part of tile team. The most imp0l1ant thing to Terry is his wife, Tamra, and their two daughters. Other than going hunting maybe twice a year and fishing as much as he can, Terry really enjoys spending time with his family. He believes life is too short to not spend time with them and relishes every moment. The best part of his day is seeing their greeting smiles when he retums home from work, Cory Nasset Field Superintendent Cory is a third generation carpenter and started working with his father in 1979. After 8 years he went to work for a General Conh'actor where he started as a carpenter, then in the 90's began to run his own projects, Cory has a wide variety of commercial projects he has worked on, some new construction and some remodel. Some of these projects include: a wastewater treatment plant remodel, nuclear storage facility, communication buildings; office buildings school, day care, restaurants, banks, retail stores. Cory spent three years on the development of a Christian Leadership Training Facility consisting of a Main Lodge, Guest/Mentor House and twelve log cabins for student housing on a ridge overlooking the lake in nOltheast Minnesota. Cory resides in Chanhassen , :MN . His favorite pastimes and interests include; working on home and auto, riding motorcycle, reading, old farm machinery and when the opportunity presents itself; going up north and working and operating machinery on his uncle's faml. Brad Esson Field Superimendent Brad's interest in construction began with his work in the pavement marking! highway construction industry, Brad managed and supervised a crew for 12 years. He then spent several years in residential building before switching his interests and focus to commercial side of construction. Brad has spent the last 7 years as ajob superintendent with a commercial general contractor. Some of his projects have included; ground-up, designlbuild, retail, major renovations and tenant improvements. Bradjoined the Nelson team in October of2006 and looks forward to building trusted relationships. Brad resides in Buffalo and enjoys snowmobiling and upland hunting with his black lab. Nelson Building and Development 2 Division Street E. Suite 201 ButJalo, t1N 55313 763-682-1818 www.NelsonBuilding.com ,i~ :~O\ "Once the contract was m.'arded and ~ Nelson Building & Development came 1/1 on board we finally achieved peace 0/ SHARErHEJOY "II "II d I" b"l" mUll. am sfr amaze at t Ielr a I fly to stay on schedule, handle our last minute changes, and provide the service and value we are getting on this project. Our committee's primmy objective was to meet the needs of the congregation on a Vel)' limited budget. At eve,), turn in the planning process we were constantly told that our needs exceeded our budget, that it just couldn't be done. I feel that it is a direct result of NED's involvement with the project that we will meet those needs and stay in budget. There is no doubt that we are getting extremely high quality and tremendous value for our dol/ar. " John Falenschek-Project Committee Coordinator Faith Lutheran Church of Becker MINNWEST BANK "Pete, your entire team of employees, always kept us up to date on the project displaying both honesty and excellent communication skills. Nelson Building and Development receives the highest marks possible in all categories, which include: quality of work pelformed; meeting of schedules, needs, and requirements; safety attitudes; communication; cost control; and job site cleanliness. Thanks for making this such a pleasant experience. " Janet Dupre -President CROWN~COmGE "College faculty and staff enjoyed working with the various Nelson team members. Nelson Building & Development's commitment to excellence was evidenced in each employee involved in the nursing project. Each employee acted in a professional manner, communicated effectively, and brought with them a concern/or the quality of their work." Division of Finance and Human Resources Crown College "Throughout the building process Nelson Building & Development exhibited professionalism. Integrity, and dedication. I will continue to use Nelson Building as my builder. Their peJformance and attitude has proven to me their ability to successfully build, not only buildings, but lasting relationships with clients. " William Graves-Owner Development 101 LLP ~ -.-......-....-. .^.... " '-~" - "The many years of construction experience you and your staffhave, helped make the project painless and enjoyable. You made it possible for us to concentrated our time and efforts on serving our many bank customers during the recent transition. Thanksfor working with liS. David Elsenpeter-PI'esident Lakes State Bank Pequot Lakes, MN TAW lOHN'S Nelson Building & . Development dId a 1l~rN:'l;JEml!l"i"la~'ma'~ .' great Job oj bringing together a good group of subcontractors whose workmanship and patience was instrumental in making this project a success. I thank you for a job well done and look forward to working with Nelson Building & Development on a future project. " Tom Holthaus-President JAT Restaurants, LLC Monticello, MN S7IiRB "The project became a \'eJY long and - K complicated affair with a number of unexpected twist and turns outside of Nelson Building & Development's control. But Nelson Building & Development did not sway and stayed firm on completing the project. They accepted each challenge to the project and continued to work with us to overcome the obstacles. Through out the project, and its many obstacles, we were impressed with Nelson's communication efforts and their professional manner. " Thomas Frederick-Arena Building Committee STARS Y olith Hockey Association Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, ~lN 55313 763~682-1818 www.NelsonBuilding.com "From day one, this firm has presented itself as a first class operation. This starts with its leader, Pete Nelson, and continues throughout the organization. Even though they are a relatively new business, they were selected by our church for our remodeling and building project. They understand that this is truly our church and our project and they work vel)' hard to serve us in evel)' way. When all is said and done, if someone were to ask me if 1 would use Nelson Building and Development again, 1 would say resoundingly, yes! I believe if you select them, you will, in/act, say the same." Rick Johnson-Building Committee Chairman Zion Lutheran Church of Buffalo eY. "After interviewing three qualified firms, we chose Nelson Building & Development because bank management believed that we could develop a very good working relationship with this firm and that certainly proved to be the case. Nelson Building & Development worked vel)! closely with our architectural firm and bank management to ensure the addition was built according to the plans and specifications. We would highly recommended the firm of Nelson Building & Development. Charles Dennis-Sr. Vice President Northwood's Bank Park Rapids, :MN ..!.8nnandale "Annandale highly recommends ll,Telson Building and Development for any project you may wish to build. From the City Administrator prospective, the entire project has been smooth and without any major hang ups. The communications between ow' office and Nelson has been excellent. Nelson has been quick in returning calls and addressing issues immediately. In conclusion, I would highly recommend using Nelson Building and Development. " j\:Iark Casey-City Administrator City of Annandale, MN "I want to commend your company on the wondelful job you did on the Downtown Wine & Spirits for the city of Buffalo. The work on the store was of the finest craftsmanship. It was also completed within the time e.\pected and on budget. In fact, I know you pushed as hard as you could to meet a velY strict deadline for opening the store. As you know this store is owned by the citizens of Buffalo-it is a building they should be proud to own. Please commend your staff for us. 171ey were wondel:fid to work with. When we requested a change, they were velY quick to comply. They exhibited a great deal of pride in what they do. That reflects velY well on your company. " ~-lerton Auger-City Administrator City of Buffalo, .MN "fFfILIt:: iii IUWIIlIU , fI1J;; BA/IlK I would like to take this oppor- tunity to THANK YOU for all the great work you and your subs didfor us at THE National Bank-Edina. NBD's prompt, and professional responsiveness to questions or issues made the job run smoothly. I appreciated the personal attention that was given our project. It is for these reasons that I can say NBD will be invited to bid on any future bank projects in the .Minneapolis metro area. Mary Ann Reid Vice President Facilities ;\'Ianagement "Throughout the construction process Nelson Building met all expectations by; staying within budget, producing an excellent structure, achieving the requirements of a strict time line. Based on their excellent pelformance, Nelson Building automatically became the contractor 0/ choice for our Phase II" :Mike Krutzig-Owncr Monticello Business Center "The communication fi'om Nelson's was extremely professional, organized and concise. Our project was delivered on time and with the best customer service in the business. We would definitely recommend Nelson Builders to anyone and would use their services again. " Brad Fisher - i'vlanager/Broker Edina Realty Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763.682.1818 \vww.NelsonBuilding.com C"k W'~~;)j"~"i('~!lJ>~ ""T-- BuiIdjn~~'" n~'"d..pm~'nt In..-. , 2 Division Street E., Suite 201 Buffalo, MN 55313 Ph: 763-682-1818 Fax: 763-682-3053 A Corporation of the State of Minnesota, Date ofIncorporation 12-26-02 Principal Owners: Peter A. Nelson & Rochelle R. Nelson BANKING Mr. Randy Haskins President Klein Bank 910 Commercial Drive Buffalo,.MN 55313 Ph,763-682-1142 BOI@NG MI'. Jack Cedarleaf President Cedarleaf, Cedarlcaf & Cedarleaf, Inc. 360 Larpenteur Ave. St. Paul, MN 55164 Ph, 651-488-6666 OWNERS / CliENTS Mr. Jeffery Vcst Owner Northland Circle Office Building 5385 Carlson Road Shoreview,.MN 55126 Ph, 763-566.3720 INSURANCE 1\'11'. Barry Quernemoen Apollo Insurance Agency 28-llth Avenue South St. Cloud, MN 56301 Ph, 320.253.1122 Ms. Mary Ann Reid Vice President Facilities Management THE National Bank PO Box 1030 Bettendorf,IA 52722 Ph, 563-344.3935 SUBCONTRACTORS S SUPPliERS :\11'. Nick Nowacki Project Engineer Meyer~Rohlin. Inc. 1111 Highway 25 North Buffalo,:MN 55313 Ph,763-682-1781 Mr. Rick Johnson Building Committee Chairman Zion Lutheran Church 214 Northeast First Ave. Buffalo,:MN 55313 Ph,763-682-8773 ]\.lr. Duane Rolstad Owner Rolstad Construction I 855-20th Street SE Buffalo,:MN 55313 Ph, 763-682-3765 Mrs. Janet Dupre' President Minnwest Bank 14820 Highway 7 Minnetonka, MN 55345 Ph,952-230-9800 Mrs. Kara Gorres Owner Twin Cities West Flooring 9490 County Road 35 West Annandale, MN 55302 Ph, 320-963-6797 ARCHITECTS I ENGiNEERS Mr. Richard Brownlee Principal Architect Station Nineteen architects 2001 University Ave. SE Minneapolis, :MN 55414 Ph,612-623-1800 i\'Ir. Tom Packer Centraire Heating and Air Conditioning 7402 Washington Avenue Eden Prairie,:MN 55344 Ph, 952-941.1044 Mr. Don Stocker Owner Stocker Excavating, Inc. 12336 Boone Avenue South Savage, MN 55378 Ph,952-890-4241 Bill Buesing Architect W AI Continuum 381 Kellogg Boulevard St. Paul, l\.1N 55101 Ph,651-227-0644 Mr. Ron Enter President/CEO Wright Lumber & ;\'Iillwork, Inc. Highway 25 Buffalo, :MN 55313 Ph, 763-682-4441 Mr. Carl ilSkip" Sorensen Project Executive Pope Associates 1255 Energy Park Drive St. Paul, MN 55108~5118 Ph,651-642-9200 Nelson Building and Development 2 Division Street E. Suite 201 Buftalo,:MN 55313 763-682-1818 www.NelsonBuilding.com PROJECT CONTACTS Minnwest Bank-Minnetonka 952-545-8815 Janet Dupree President Rob B..andwick Project Architect - HTG Architects 651-227-0644 Elim Care, Inc. 763-295-3347 Loren Christiansen Owner Bill Buesing 651-227-0644 Project Architect - W AI Continuum Dahlheime.. Dist..ibuting G..eg Dahlheime.. Owner 763-295-3347 Skip So..enson Pope Associates 651-642-9200 Monticello Business Center Phase I & II Mike Krutzig 763-295-2200 Owner SB24 LLC. Faith Luthe..an Chu..ch, Becke.. Lowell Beihoffe.. 763-262-0062 Ownerls Construction Representative Matt Hall 612-623-1800 Project Architect - Station 19 Architects Zion Luthe..an Chu..ch, Buffalo 952-914-2477 Rick Johnson Building Committee Chair Dick B..ownlee 612-623-1800 Principal Architect - Station 19 Architects Buffalo Public Wo..ks Mel10n Auger City Administrator 763-682-1181 Gayle Mack Project Architect - SHE, Inc. 612-758-6781 Annandale New Town Market Tim Fe....ell Owner 320-274-3037 Nelson Building and Development 2 Division Street E. Suite 201 Buffalo, MN 55313 763-682-1818 www.NelsonBuilding.com theMe;sferP!Ilr1- ~b_ ......-_..:~~...~':' ,: '.. /~f,.' '_.__. .. ,.ltl!:: ......,,- , !fl{=..;;:..-~:~_ ~~.~J . G" /. ' ..........:.:;:.. "'.... ",'it: C~._ 1/,._. ~~~~ ' __'i<l_"'~jJ~~ '~\II ;)i;,)~ Ili\M!III!! .. "{b~",~ B~f$J IDESI~f$J SlliWID INTEGRATED APPROACH _~,_~--;;,:,,-y,'f';:':,:::: ~'" ~,-."- I'~~~r~~rj~;;:X::~-~~~t:,;):'~~t{-:{ ;~i'~_ .~. _._ _ ,-",' Collage has participated in mixed-use developments Successful development requires understanding of the many aspects affecting the outcome. Collage takes pride in establishing and managing the overall process to meet the greatest potential. and design utilizing both vertical and horizontal mixed-use components. Our team offers not only design expertise, but also development experience. CARLSON PARK RESORT The Carlson Companies began developing a new lifestyle liv- ing prototype in Savannah, Georgia called The Carlson Park Resort Communities that provided hotel style services to residential master plans. These plans created a vision that es- tablished a community feeling to create a unique resOIt style experience. The Savannah plan provided over 2500 units of mixed housing in townhomes, condominiums and single family homes, along with a 180 key hotel, spa, restaurants and retail all surrounding a newly created marina. The site which is close proximity to the historic downtown captured the quali- ties of historic Savannah. :J-. .....;;clr:;z~~......., . ') "'\ '" ~ , 'i _r> '~'..,' c,. ,,~~. c~ ~, :~~~~j,~~.:? :~~r. ~;'~'l~~ :I~:~t' ..~;". IltlJIt 1'"'' ...........,,-... "^ w"" .....\eN"'. ,r, w,. - '~',:~: :.,."..... <1<; ~uu '. ~..... ~,.........<<.... ~ ~:-"" """',i:;?.'~. -. I~'~"',. u~ "'''''''l' 01_"", II'''' ,,~ 1:0; S.",. I!UI< ___.___ . " ~-,........,,<~~:,~-~~, - ""~":~ ~':-::i::'~:,::i::k:~Y' _ r' >,,- ..1'9...... 'x 11''1;' ~..~.".'" = 1>"" . "-~,.,.. '''''''4 ..... Sill" ..,....:"", "', .- --'." '-~., ,","o'~~';:-><___ ~;' r .....c... 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" " "~-- Colliers Turley Martin Tucker: Mi1U1eapolis Market Home 4 Colliers Global Site Contact Help Sitemap Tools Jump to an Office Page I 01'2 Search D Minneapolis Commercial Real Estate Consultants Market Reports Services News Events Premier Properties Case Studies Resources About Us Find a Property Find a Person Colliers Turley Martin Tucker 200 South Sixth Street Suite 1400 Minneapolis, Minnesota 55402 U5A Tel: 612-341-4444 Fax: 612-347-9389 Welcome to Minneapolis/St. Paul The Commercial Real Estate Professionals Count on Colliers Turley Martin Tucker's (CTMT's) professional expertise and in-depth understanding of the markets to ensure you are making the best decision when investing in commercial real estate. 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Tenant Representation Practice Groups printer friendly version Disclaimer Privacy Policy Colliers International is a worldwide aff1liation of independently owned and operated companies, Copyright (fi 2003-2006 Colliers International Property Consultants, Inc. AI! rights reserved. http://www.colliers.com/Markets/Minneapo lis/Services/ServiceGroups/T enantRepresentati onl 10/18/2007 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Meetina 0 : ctober23, 007 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO: 5 DEPARTMENT: DIRECTOR Community Development APPROVAL ITEM: Approve Preliminary Development BY: Randy Schumacher BY: Agreement between EDA and Tom Frattalone for DATE: October 18, 2007 the Burger King Redevelopment Site fO 2 BACKGROUND: Site History The EDA acquired the Burger King site in 2004 for the purpose of redevelopment. The site had been identified by the EDA as a redevelopment priority. Preliminary Development Agreement Tom Frattalone, owner of Frattalone Ace Hardware, met with City staff in the spring of 2007 to discuss the possible relocation of his hardware store, currently located near the corner of 3ih Avenue and McKinley Street. As it is his oldest and smallest store, and his lease will soon expire, Mr. Frattalone is considering options for relocation within his market area. Staff reviewed with him the redevelopment areas the EDA had identified as priorities and Mr. Frattalone decided that the former Burger King site best suits his needs. Mr. Frattalone's proposes to build a 13,000 - 14,000-square foot retail store with an adjacent 3,000 - 4,000-square foot garden center. Since his present lease expires on June 30,2008, Mr. Frattalone would like to move through the review process in a timely manner. RECOMMENDATION: Staffs recommends approval of a Preliminary Development Agreement between Tom Frattalone and the EDA. RECOMMENDED MOTION: Move to Approve the Preliminary Development Agreement between Tom Frattalone and the EDA; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. EDA ACTION: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY BURGER KING REDEVELOPMENT SITE PRELIMINARY DEVELOPMENT AGREEMENT THIS AGREEMENT, dated this 23rd day of October, 2007, by and between the Colnmbia Heights Economic Development Authority, a body politic and corporate under the laws of Minnesota (the "Authority") and Frattalone Hardware (the "Developer"): WITNESSETH: WHEREAS, the Authority desires to promote redevelopment of ceIiain propeIiy within the City of Columbia Heights, which property is legally described in Exhibit A attached hereto (the "Property"); and WHEREAS, the Developer has requested the Authority to explore the use of certain public assistance, financial and otherwise, to assist with such activities, hereafter referred to as the "Redevelopment"; and WHEREAS, the Authority has determined that it is in the Authority's best interest that the Developer be designated sole developer of the PropeIiy during the term of this Agreement; and WHEREAS, the Authority and the Developer are willing and desirous to undertake the Redevelopment if (i) a satisfactory agreement can be reached regarding the Authority's commitment for public assistance necessm"y for the Redevelopment; (ii) satisfactory mortgage mld equity financing, or adequate cash resources for the Redevelopment can be secured by the Developer; mId (iii) the economic feasibility and soundness of the Redevelopment; and (iv) satisfactory resolution of zoning, lmld use, site design, and engineering issues, and other necessary preconditions have been determined to the satisfaction ofthe parties; and WHEREAS, the Authority is willing to evaluate the Redevelopment and work towm"d all necessary agreements with the Developer if the Developer agrees to reimburse the Authority for its costs relating to the Redevelopment even if the Redevelopment is abandoned or necessary agreements are not reached under the terms of this Agreement. NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set fmih herein, the pmiies agree as follows: 1. Negotiations between the pmiies shall proceed in ml attempt to fonnulate a definitive development contract ("Contract") based on the following: (a) the Developer's proposal (when submitted) together with any chmlges or modifications required by the Authority; SJB-26D554vl CUD5-3D (b) such documentation regarding economic feasibility of the Project as the Authority may wish to undertake during the telm of this Agreement; and (c) other tem1S and conditions of this Agreement. 2. It is the intention of the parties that this Agreement: (a) documents the present understanding and connnitments of the parties; and (b) will lead to negotiation and execution of a mutnally satisfactory Contract for the Redevelopment prior to the termination date of this Agreement. The Contract (together with any other agreements entered into between the parties hereto contemporaneously therewith) when executed, will supersede all obligations of the parties hereunder. 3. During the term of this Agreement, the Developer shall: (a) By December 15, 2007, submit a proposal to the Authority, which proposal must show the location, size, and nature of the proposed Redevelopment, including sample floor layouts, renderings, elevations, and other graphic or written explanations of the Redevelopment. The proposal shall be accompanied by a preliminary schedule for the stmting and completion of all phases of the Redevelopment. (b) Submit an over-all cost estimate for the design and constmction of the Redevelopment. (c) Submit a final time sehedule for all phases of the Redevelopment. (d) UndeItake and obtain such other preliminary economie feasibility stndies, income and expense projections, and such other economic information as the Developer may desire to further confirm the economic feasibility and soundness of the Redevelopment. (e) Submit to the Authority the Developer's finllilcing plan showing that the proposed Redevelopment is financially feasible. (f) Furnish satisfactory, financial data to the Authority evidencing the Developer's ability to undeltake the Redevelopment. 4. During the term of this Agreement, the Authority agrees to: (a) Commence the process necessary to undeltake such public assistance as is necessary pursuant to the terms of the proposal. (b) Proeeed to seek allnecessm'y infonnation with reglli'd to the anticipated public costs associated with the Redevelopment. (c) Estimate the Authority's level and method of fmancial pmticipation, if any, in the Redevelopment and develop a financial plm1 for the Authority's pmticipation. SJB-260554vl CL20S-30 5. It is expressly understood that execution ffild implementation of the Contract shall be subject to: (a) A determination by the Authority in its sole discretion that its undertakings are feasible based on (i) the projected tax increment revenues ffild any other revenues designated by the Authority; (ii) the purposes and objectives of any tax increment, development, or other plan created or proposed for the purpose of providing financial assistance for the Redevelopment; and (iii) the best interests of the Anthority. (b) A determination by the Developer that the redevelopment is feasible and in the best interests of the Developer. 6. This Agreement is effective Ii-om the date hereof tln'ough 120 days, 2008. After such date, neither party shall have any obligation hereunder except as expressly set fOl1h to the contrary herein. 7. The Developer shall be solely responsible for all costs incurred by the Developer. In addition, the Developer shall reimburse the Authority for the following costs: (a) Upon execution of tlus Agreement, the Developer has deposited with the Authority funds in the amount of $ , receipt of which the Authority hcreby acknowledges. The Authority may apply such deposit to pay any "Authority Costs," which means: reasonable and necessary out-of pocket-costs incuned by the Authority from and after date of executed agreement, in each case based on actual time spent in connection with rendering assistance and advice to the Authority as evidenced by itenuzed bills and invoices for (i) the Authority's financial advisor in connection with the Authority's financial participation in redevelopment of the Propel1y, (ii) the Authority's legal counsel in cormection with negotiation and drafting of this Agreement and any related agreements or documents, and any legal services related to the Authority's or City's participation in redevelopment of the Property; (iii) any appraiser retained by the Authority in connection with conveyance of any pOl1ion of the Propel1y by the Authority to the Developer or in c011llection with detemlination of the level of public assistance; and (iv) consultants retained by the Authority for plarming, environmental review, and traffic engineering for development of the Propel1y. At Developer's request, but no more often than monthly, the Authority will provide Developer with a written rep011 on Cllnent and anticipated expenditures for Authority Costs, including invoices or other comparable evidence. (b) If at any time during the ten11 of this Agreement the Authority determines that the amounts deposited by Developer are insufficient to pay Authority Costs, the Authority may notify the Developer in ,,>,riting as to any additional amount required to be deposited. The Developer must deposit such additional funds within 20 days after receipt of the Authority's notice. (c) Upon termination of tlus Agreement in accordance with its telms, the Authority will return to the Developer the balance of any funds deposited under this section that are on hand as of the date of receipt of the notice of termination, and less any SJB-260554vl CL205-30 Authority Costs incuned through the date of receipt of the notice oftennination. For the pmposes of this paragraph, Authority Costs are considered to be incuncd if they have been paid, relate to services performed, or are payable under a contract entered into, on or before the date of receipt of the notice of termination. This Section 7 shall survive termination of this Agreement and shall be binding on the Developer regardless of the enforceability of any other provision of tlus Agreement. 8. This Agreement may be temlinated upon 5 days written notice by the Authority to the Developer if: (a) an essential precondition to the execution of a contract cannot be met; or (b) if, in the sole discretion of the Authority, an impasse has been reached in the negotiation or implementation of allY materialtelm or condition of this Agreement or the Contract; or (c) The Authority detemlines that its Administrative Costs will exceed the alno,-!nt initially deposited for such purpose under Section 7(b), alld tile Developer does not deliver additional security to the Authority pursuant to Section 7(b) of this Agreement. If the Authority temlinates the Agreement under this Section 8, the Developer shall remain liable to the Authority under Section 7(b) of this Agreement for Administrative Costs incun'ed by the Auiliority through the effective date oftemunation. 9. The Developer is designated as sole developer of the Propelty during the telm of this Agreement. The Authority makes no representations or WalTallties as to control, access or ownership of any pOltion of the Propelty, but agrees that during the tenn of tlus Agreement the Authority will not enter into agreements with any other pmty to facilitate redevelopment of ilie Property . 10. In the event that the Developer, its heirs, successors or assigns, fail to comply with any of the provisions of tlus Agreement, the Authority may proceed to enforce tlus Agreement by appropriate legal or equitable proceedings, or other similar proceedings, and the Developer, its heirs, successors or assigns, agree to pay all costs of such enforcement, including reasonable attorneys' fees. II. jurisdiction, Agreement. If any pOltion of this Agreement is held invalid by a court of competent sueh decision shall not affect the validity of any remaining pOltion of ilie 12. In the event allY covenant contained in tlus Agreement should be breached by one pal'ty and subsequently waived by allother palty, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other eoncunent, previous or subsequent breach. This Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. SJB-260554vl CL205-30 13. sufficiently personally: Notice or demand or other conm1Unication between or among the patiies shall be given if sent by mail, postage prepaid, retUl11 receipt requested or delivered (a) As to the Authority: Columbia Heights Economic Development Authority 590 40th Avenue NE Columbia Heights, MN 55421 Attn: Randy Schumacher (b) As to the Developer: Tom Frattalone 2261 37th Ave NE Columbia Heights, MN 55421 14. This Agreement may be executed simultaneously in any number of counterpatis, all of which shall constitute one and the same instrument. 15. This Agreement shall be govemed by and construed in accordat1ce with the laws of the state of Milmesota. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal comis of Milmesota, and all parties to this Agreement waive any objection to the jurisdiction of these comis, whether based on convenience or otherwise. 16. The Developer hereby agrees to protect, defend and hold the Authority and its officers, elected and appointed officials, employees, administrators, cOlllli1issioners, agents, at1d representatives hatmless from at1d indemnified against at1Y atld all loss, cost, fines, charges, damage and expenses, including, without limitation, reasonable attomeys fees, consultant and expeli witness fees, at1d travel associated therewith, due to claims or demat1ds of any kind whatsoever arising out of (i) the development, marketing, sale or leasing of all or any pati of the Propeliy, including, without limitation, any claims for any lien imposed by law for services, labor or materials fumished to or for the benefit of the Propeliy, or (ii) any claim by the state of Minnesota or the Minnesota Pollution Control Agency or any other person pertaining to the violation of any pellnits, orders, decrees or demands made by said persons or with regat'd to the presence of at1y pollutant, contaminant or hazardous waste on the Propeliy; and (iii) or by reason of the execution of this Agreement or the performance of this Agreement. The Developer, and the Developer's successors or assigns, agree to protect, defend and save the Authority, and its officers, agents, and employees, hatmless from all such claims, demat1ds, damages, at1d causes of action and the costs, disbursements, and expenses of defending the same, including but not limited to, attorneys fees, consulting engineering services, and other technical, administrative or professional assistance. TillS indemnity shall be continuing and shall survive the perfOllnat1Ce, telmination or cancellation of this Agreement. Nothing in this Agreement shall be construed as a limitation of or waiver by the Authority of any inl111Unities, defenses, or other limitations on liability to which the Authority is entitled by law, including but not limited to the maximum monetary linllts on liability established by Mill1lesota Statutes, Chapter 466. SJB-260554vl CUOS-30 17. The Developer, for itself, its attorneys, agents, employees, former employees, insurers, heirs, administrators, representatives, successors, and assigns, hereby releases and forever discharges the Authority, and its attorneys, agents, representatives, employees, forn1er employees, insurers, heirs, executors and assigns of and fi.om any and all past, present or future claims, demands, obligations, actions or causes of action, at law or in equity, whether arising by statute, common law or otherwise, and for all claims for damages, of whatever kind or nature, and for all claims for attorneys' fees, and costs and expenses, including but not limited to all claims of any kind arising out of the negotiation, execution, or perfonnance of this Agreement between the parties. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] SJB-260554vl CL20S-30 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and its seal to be duly affixed hereto and the Developer has caused this Agreement to be duly executed as of the day and year tirst above written. IDEVELOPER] By Its By Its SJB-260554vl CL205-30 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By Its President-Gary L. Peterson By Its Executive Director- Walter R. Fehst Date: SJB-260554\' 1 eL20S-30 3939 CENTRAL AVE (Former Burger King Site) w ~ .....I <( 0::: I- Z W o 39TH AVENUE N W.J$~Zi..-E f<~}t S CBD - Central Business District R-3 - Multiple Family Residential GB - General Business District COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ee Inq 0 : co er , AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO: 6 DEPARTMENT: DIRECTOR Community Development APPROVAL ITEM:Approve Preliminary Development BY: Randy Schumacher BY: Agreement between EDA and C.RO.S. DATE: October 18, 2007 Companies LLC for the Beecroft Redevelopment Site M t" f 0 t b 23 2007 BACKGROUND: Site History The City Council designated the Beecroft Redevelopment Site near the intersection of 3ih and Central Avenues, and a gateway to the city, as a priority when it drafted redevelopment goals for the City. The City later obtained Community Development Block Grants to acquire two non-conforming single-family homes and demolished them. In 2003, the City acquired the adjacent Beecroft building at 3710 Central Avenue, and leased it for a number of years to the Don-Murnane Wigs. Upon retirement in the fall of 2006, the business vacated the building. Preliminary Development Agreement Chris Little and his father, Richard, of C.RO.S. Companies LLC, and Loucks Associates (a planning and design firm) have been meeting with city staff for the past few months to discuss design options for a 9,600-square foot building. The developer is working on a sources and uses statement, to determine the financial feasibility of the project and has also obtained and executed a proposal to purchase the Chutney Restaurant and parking lot adjacent to the Beecroft building, from its present owner, Julio Punjani. At this point in the project, the developers would like to enter into a Preliminary Development Agreement to assure themselves that the EDA will not enter into an agreement with another party for redevelopment of the property. RECOMMENDATION: Staff recommends Approval of the Preliminary Development Agreement between C.R.O.S. Companies LLC and the EDA. RECOMMENDED MOTION: Move to Approve the Preliminary Development Agreement between C.RO.S. Companies LLC and the EDA for the Beecroft Redevelopment Site; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. EDA ACTION: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY BEECROFT REDEVELOPMENT SITE PRELIMINARY DEVELOPMENT AGREEMENT THIS AGREEMENT, dated tins 23rd day of October, 2007 , by and bet\veen the Columbia Heights Economic Development Authority, a body politic and corporate under the laws of Minnesota (the "Authority") and C.R.O.S. CompaInes LLC (the "Developer"): WITNESSETH: WHEREAS, the Authority desires to promote redevelopment of certain property within the City of Columbia Heights, which property is legally described in Exlnbit A attached hereto (the "Propelty"); and WHEREAS, the Developer has requested the Authority to explore the use of certain public assistance, financial and otherwise, to assist with such activities, hereafter referred to as the "Redevelopment"; aIld WHEREAS, the Authority has detennined that it is in the Authority's best interest that the Developer be designated sole developer of the Propeliy during the term of this Agreement; and WHEREAS, the Authority and the Developer are willing and desirous to undeliake the Redevelopment if (i) a satisfactory agreement can be reached regarding the Authority's commitment for public assistance necessary for the Redevelopment; (ii) satisfactory mOltgage and equity financing, or adequate cash resources for the Redevelopment can be secured by the Developer; aIld (iii) the economic feasibility and soundness of the Redevelopment; and (iv) satisfactOlY resolution of zoning, land use, site design, aIld engineering issues, and other necessary preconditions have been detelmined to the satisfaction of the parties; and WHEREAS, the Authority is willing to evaluate the Redevelopment and work toward all necessary agreements with the Developer if the Developer agrees to reimburse the Authority for its costs relating to the Redevelopment even if the Redevelopment is abandoned or necessary agreements are not reached under the terms of this Agreement. NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants aIld obligations set forth herein, the paIiies agree as follows: 1. Negotiations between the paliies shall proceed in an attempt to formulate a definitive development contract ("Contract") based on the following: (a) the Developer's proposal (when submitted) together '.vith any changes or modifications required by the Authority; SJB-260554vl CL205-30 (b) such documentation regmding economic feasibility of the Project as the Authority may wish to undertake during thc ten11 of this Agreement; and (c) other terms and conditions of this Agreement. 2. It is the intention of the patties that this Agreement: (a) documents the present understat1ding and commitments of the parties; and (b) will lead to negotiation and execution of a mutually satisfactory Contract for the Redevelopment prior to the termination date of this Agreement. The Contract (together with any other agreements entered into between the patties hereto contemporat1eously therewith) when executed, will supersede all obligations of the parties hereunder. 3. During the term of this Agreement, the Developer shall: (a) By December 15, 2007, submit a proposal to the Authority, which proposal must show the location, size, and nature of the proposed Redevelopment, including sample floor layouts, renderings, elevations, and other graphic or written explanations of the Redevelopment. The proposal shall be accompatued by a preliminaty schedule for the starting and completion of all phases of the Redevelopment. (b) Submit an over-all cost estin1ate for the design and constlUction of the Redevelopment. (c) Submit a final time schedule for all phases of the Redevelopment. (d) Undeltake and obtain such other preliminmy economic feasibility studies, income and expense projections, and such other economic information as the Developer may desire to further confin11 the economic feasibility at1d soundness of the Redevelopment. (e) Submit to the Authority the Developer's financing plan showing that the proposed Redevelopment is financially feasible. (f) Furnish satisfactory, fina11cial data to the Authority evidencing the Developer's ability to undertake the Redevelopment. 4. During the term of this Agreement, the Authority agrees to: (a) C0111111ence the process necessary to undeltake such public assistance as is necessary pursuant to the terms of the proposal. (b) Proceed to seek all necessary information with regard to the anticipated public costs associated with the Redevelopment. (c) Estimate the Authority's level and method of finat1cial participation, if any, in the Redevelopment and develop a financial plan for the Authority's patticipation. SJB-260554vl CL205-30 5. It is expressly understood that execution and implementation of the Contract shall be subject to: (a) A determination by the Authority in its sole discretion that its undeliakings are feasible based on (i) the projected tax increment revenues and any other revenues designated by the Authority; (ii) the purposes and objectives of any tax increment, development, or other plan created or proposed for the purpose of providing financial assistance for the Redevelopment; and (iii) the best interests of the Authority. (b) A determination by the Developer that the redevelopment is feasible and in the best interests of the Developer. 6. This Agreement is cffective from the date hereof through 120 days, 2008. After such date, neither party shall have any obligation hereunder except as expressly set forth to the contrary herein. 7. The Developer shall be solely responsible for all costs inculTed by the Developer. In addition, the Developer shall reimburse the Authority for the following costs: (a) Upon execution of this Agreement, the Developer has deposited with the Authority funds in the amount of $ , receipt of which the Authority hereby acknowledges. The Authority may apply such deposit to pay any "Authority Costs," which means: reasonable and necessary out-of pocket-costs inculTed by the Authority from and after date of executed agreement, in each case based on actual time spent in cOlUlection with rendering assistance and advice to the Authority as evidenced by itemized bills and invoices for (i) the Authority's financial advisor in cOilllection with the Authority's financial paliicipation in redevelopment of the Property, (ii) the Authority's legal counsel in connection with negotiation and drafting of this Agreement and allY related agreements or documents, and any legal services related to the Authority's or City's paliicipation in redevelopment of the Propeliy; (iii) any appraiser retained by the Authority in connection with conveyance of any pOltion of the Property by the Authority to the Developer or in connection with determination of the level of public assistance; and (iv) consultants retained by the Authority for planning, environnlental review, alld traffic engineering for development of the Property. At Developer's request, but no more often than monthly, the Authority will provide Developer with a written rcpOlt on cun'ent and anticipated expenditures for Authority Costs, including invoices or other comparable evidence. (b) If at any time during the term of this Agreement the Authority determines that the amounts deposited by Developer are insufficient to pay Authority Costs, the Authority may notify the Developer in writing as to any additional amount required to be deposited. The Developer must deposit such additional funds within 20 days after receipt of the Authority's notice. (c) Upon telmination of this Agreement in accordance with its telms, the Authority will return to the Developer the balallce of any funds deposited under this section that are on hand as of the date of receipt of the notice of ternunation, and less any 518-260554vl CL205-3D Authority Costs incurred through the datc of receipt of the notice of termination. For thc purposes of this paragraph, Authority Costs are considered to be incurred if they have been paid, relate to services performed, or are payable under a contract entered into, on or before the date of receipt of the notice of termination. This Section 7 shall survive termination of this Agreement and shall be binding on the Developer regardless of the enforceability of any other provision of this Agreement. 8. This Agreement may be terminated npon 5 days written notice by the Authority to the Developer if: (a) an essential precondition to the execution of a contract cannot be met; or (b) if, in the sole discretion of the Authority, an impasse has been reached in the negotiation or implementation of any material term or condition of this Agreement or the Contract; or (c) The Authority determines that its Administrative Costs will exceed the amOlll1t initially deposited for such purpose under Section 7(b), and the Developer does not deliver additional security to the Authority pursuant to Section 7(b) of this Agreement. If the Authority terminates the Agreement under this Section 8, the Developer shall remain liable to the Authority under Section 7(b) of this Agreement for Administrative Costs incurred by the Authority through the effective date oftermillation. 9. The Developer is designated as sole developer of the Propelty during the term of this Agreement. The Authority makes no representations or warranties as to control, access or ownership of any pOltion of the Propelty, but agrees that during the teml of tlus Agreement the Authority will not enter into agreements with any other party to facilitate redevelopment of the Propmty. 10. In the event that the Developer, its heirs, successors or assigns, fail to comply with any of the provisions of tlus Agreement, the Authority may proceed to enforce tlus Agreement by appropriate legal or equitable proceedings, or oilier similar proceedings, and the Developer, its heirs, successors or assigns, agree to pay all costs of such enforcement, including reasonable attorneys' fees. 11. jurisdiction, Agreement. If any pOltion of this Agreement is held invalid by a COUlt of competent such decision shall not affect the validity of any remailung pOltion of the 12. ill the event any covenant contained in this Agreement should be breached by one pmty and subseqnently waived by another party, snch waiver shall be limited to the pmticulm' breach so waived mld shall not be deemed to waive any other concUlTent, previous or subsequent breach. This Agreement may not be amended nor any of its tenns modified except by a writing authorized and executed by all pmties hereto. SJB-260554vl CUDS-3D 13. sufficiently personally: Notice or demand or other communication bctwecn or among thc paltics shall be given if sent by mail, postage prepaid, return rcceipt requested or delivered (a) As to the AuthOlity: Columbia Heights Economic Development Authority 590 40th Avenue NE Columbia Heights, MN 55421 Attn: Randy Schumacher (b) As to the Developer: C.R.O.S. Compallies LLC 552 Lomianki Lalle Columbia Heights, MN 55421 14. TillS Agreement may be cxecuted simultaneously in allY number of counterpmis, all of which shall constitute one and the same instrument. 15. This Agreement shall be governed by alld construed in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims arising out of tillS Agreement shall be heard in the state or federal courts of Mimlesota, and all paltics to this Agreement waive any objection to the jurisdiction of these courts, whether based on convenience or otherwise. 16. The Developer hereby agrees to protect, defend and hold the Authority and its officers, elected and appointed officials, employees, administrators, commissioners, agents, and represcntatives harmless fi'om alld indemnified against any alld all loss, cost, fines, charges, dalnage and expenses, including, without limitation, reasonable attomeys fees, consultant alld expert witness fees, and travel associated therewith, due to claims or demallds of any kind whatsoever arising out of (i) the development, marketing, sale or leasing of all or any part of the Property, including, without limitation, auy claims for any lien imposed by law for services, labor or materials furnished to or for the benefit of the Property, or (ii) any claim by the state of Minnesota or the Mill11esota Pollution Control Agency or allY oilier person peltaining to the violation of any permits, orders, decrees or demands made by said persons or with regard to the presence of any pollutant, contaminant or hazardous waste on the Propelty; and (iii) or by reason of the execution of this Agreement or the performance of this Agreement. The Developer, and the Developer's successors or assigns, agree to protect, defend alld save the Authority, and its officers, agents, and employees, hannless from all such claims, demands, damages, and causes of action alld the costs, disbursements, and expenses of defending the same, including but not limited to, attorneys fees, consnlting engineering services, and other technical, admilllstrative or professional assistance. TIllS indemlllty shall be continuing and shall survive the performance, termination or cancellation of this Agreement. Nothing in tillS Agreement shall be construed as a litnitation of or waiver by the Authority of any inmmnities, defenses, or other litnitations on liability to which the Authority is entitled by law, including but not linllted to the maximnm monetary limits on liability established by Mill11esota Statutes, Chapter 466. SJB-260554vl CL20S-30 17. The Developer, for itse1t: its attomeys, agents, employees, fonner employees, insurers, heirs, administrators, representatives, successors, and assigns, hereby releases and forever discharges the Anthority, and its attomeys, agents, representatives, employees, fonner employees, insurers, heirs, executors and assigns of and from any and all past, present or future claims, demands, obligations, actions or causes of action, at law or in equity, whether arising by statute, common law or otherwise, and for all claims for damages, of whatever kind or nature, and for all claims for attorneys' fees, and costs and expenses, including but not limited to all claims of any kind arising out of the negotiation, execution, or perfornlance of this Agreement between the parties. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] SJB-260554vl CL205-30 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and its seal to be duly affixed hereto and the Developer has caused this Agreement to bc duly executed as of the day and year first above written. [DEVELOPER] By Its By Its SJB-260554vl CL205-30 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By Its President-Gary 1. Peterson By Its Executive Director- Walter R. F ehst Date: SJB-260554vl CL205-30 37TH & CENTRAL AVENUE REDEVELOPMENT AREA 109.0' W :J (J1 Z 0 W 0 > <( ....I ~Q (J1 ~ 0 q I- ~ Z {l;- (J1 w ~o 0 u q $" [J (J1 ~ -...I 0] (J1 o q 37TH AVENUE N W~~E S GB - General Business District R-3 - Multiple Family Residential COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ee Inq 0 : coer , AGENDA SECTION: Business Items ORIGINATING DEPARTMENT: EXECUTIVE NO: 7 Community Development DIRECTOR APPROVAL ITEM: Approve Demolition of Beecroft Building BY: Randy Schumacher BY: at 3710 Central Avenue DATE: October 18, 2007 M r f 0 t b 23 2007 BACKGROUND: Site History The City Council designated the Beecroft Redevelopment Site near the intersection of 3ih and Central Avenues, and a gateway to the city, as a priority when it drafted redevelopment goals for the city. The City later obtained grants to acquire two non- conforming single-family homes and demolished them. In 2003, the City acquired the adjacent Beecroft building at 3710 Central Avenue, and leased it for a number of years to Don-Murnane Wigs. The business owners vacated the building upon retirement in the fall of 2006 and it has been vacant since then. Demolition of Beecroft Building The retail building at 3710 Central Avenue has been vacant since the fall of 2006 and the City has been granted $55,000 in Community Development Block Grant (CDBG) funds for its demolition. With a leaky roof and unstable foundation, the building is in poor condition. Sitting vacant, the property remains a liability for the City. On October 17,2007, City staff received the following four quotes for the demolition of the building: 1. 2. 3. 4. Frattalone Inc. Veit Inc. Rachel Contracting Belair Excavating $23,600 $23,859 $29,625 $29,830 Frattalone Inc. provided the lowest quote of $23,600. The contractor will remove the entire building, as well as all bituminous and concrete paving, and landscaping. The property will be graded and seeded. RECOMMENDATION: Staff recommends accepting the low quote for demolition of the Beecroft building at 3710 Central Avenue. RECOMMENDED MOTION: Move to Approve the low quote for demolition of the Beecroft building at 3710 Central Avenue from Frattalone Inc. in an amount not to exceed $23,600. EDA ACTION: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Meeting of: October 23, 2007 AGENDA SECTION: Business Items ORIGINATING DEPARTMENT: CITY MANAGER'S NO: 8 Community Development APPROVAL ITEM: Industrial Park Groundwater BY: Randy Schumacher BY: Investigation Report of Contaminated DATE: October 18, 2007 Soil BACKGROUND: After three long years, the EDA staff has completed the clean up of the Industrial Park. It has taken over $4,500,000 of grant funding to accomplish the removal of over 138,000 cubic yards of contaminated soil. To date 139 units have been built with an additional 32 units under construction in Phase II. The final step in the clean up process, as required by the Minnesota Pollution Control Agency is to conduct a Groundwater Investigation Report of the contaminated Industrial Park. In order to accomplish that task, ProSource will meet with staff from the Minnesota Pollution Control Agency to review the existing data, discuss our approach and determination for well locations. ProSource will also prepare access agreements and coordinate with landowners for well installation. A total of five monitoring wells will have to be installed as part of this investigation. Drilling services will be provided by the Traut Well Company of Waite Park, Minnesota. All work will be done in accordance with Minnesota Department of Health Well Construction Code, Minnesota Rule 4725. A geologist from ProSource will provide over site during all soil boring and well installation activities. Following well development, ProSource will conduct two rounds of base line sampling to evaluate groundwater quality. ProSource personnel will also survey each well to provide vertical and horizontal control. Following completion of fieldwork, ProSource will prepare a report for submittal to the Minnesota Pollution Control Agency. The report will include a discussion of field methods, geologic/hydro geologic conditions and analytical results. Applicable tables, figures, and/or supporting data will be included. Based on the above scope of work, the cost to complete this project is $84,748. Of this, $45,568 will cover the cost of drilling services. The remaining $39,180 includes all labor, equipment and expenses related to coordination with subcontractors, over site, well development, base line sampling, surveying, reporting, project management and liaison with the Minnesota Pollution Control Agency. The entire cost for this scope of work will be funded by Community Development Block Grant funds as well as Metropolitan Council grant dollars that have already been secured. RECOMMENDATION: Staff recommends approval of the Industrial Park Groundwater Investigation Report of Contaminated Soil scope of work and contract amount of $84,748. RECOMMENDED MOTION: Move to Approve the ProSource Industrial Park Groundwater Investigation Report of contaminated soil scope of work and contract, not to exceed $84,748 and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. EDA ACTION: Supplemental Ground Water Investigation Columbia Heights Industrial Park - Columbia Heights, Minnesota Page 3 STANDARD TERMS AND CONDITIONS 1. STANDARD OF CARE. Services shall be performed in accordance with the standard of professional practice ordinarily exercised by the applicable profession at the time and within the locality where the Services are performed. Professional Services arc not subject to. and ProSource can not provide, any warranty or guarantee, express or implied, including warranties or guarantees contained in any uniform commercial code. Any such warranties or guarantees contained in any purchase orders, requisitions or notices to proceed issued by a client are specifically objected to. 2. CHANGE OF SCOPE. The scope of Services set forth in this Agreement is based on facts known at the time of execution of this Agreement, including, if applicable, information supplied by Client. For some projects the scope may not be fully definable during the initial phases. As the Project progresses, facts discovered may indicate tbat scope must be redefined. ProSource will promptly provide Client with an amendment to this Agreement to recognize such change, which shall be deemed approved if not objected to within 15 days of receipt by Client. 3. SAFETY. ProSource has established and maintains corporate programs and procedures for the safety of its employees. Unless specifically included as a service to be provided as a service under this Agreement, ProSource specifically disclaims any authority or responsibility for general job site safety and safety of persons otber than ProSource employees. 4. DELAYS. If events beyond the control of Client or ProSource, including, but not limited to, fire, flood, ex-plosion. riot. strike, war, process shutdov,,'11. acts of God or the public enemy. and act or regulation of any government agency. result in delay to any schedule established in this Agreement, such schedule shall be amended to the extent necessary to compensate for such delay. In the event such dclay exceeds 90 days, ProSource shall be entitled to an equitable adjustment in compensation. In the event that the project is delayed by Client and such delay exceeds 30 days, ProSoUice sbaH be entitled to an extension of time equal to the delay and an equitable adjustment in compensation. 5. TERMINATION / SUSPENSION. Either party may terminate this Agreement npon 30 days written notice to the other party. Client shall pay ProSource for all Services, including any expenses, incurred prior to termination. In the event that either party defaults in its obligations under this Agreement (including Clients obligation to make the payments required hereunder), the non-defaulting party may. after 7 days written notice stating its intention to suspend performance under the Agreement if cure of such default is not commenced and diligently continued, and failure of the defaulting party to commence cure within such time limit and diligently continue. suspend perfonnance under this Agreement. 6. OPINIONS OF CONSTRUCTION COST. Any opinion of construction costs prepared by ProSource is supplied for the general guidance of the Client only. Since ProSource has no control over the competitive bidding or market conditions, ProSource cannot guarantee the accuracy of such opinions as compared to contract bids or actual costs to client. 7. RELATIONSHIP WITH CONTRACTORS. ProSource shall serve as Client's professional representative for the Services, and may make recommendations to Client concerning actions relating to Client's contractors. but ProSource specifically disclaims any authority to direct or supervise the means, methods, techniques. sequences, or procedures or construction selected by Client's contractors. 8. CONSTRUCTION/CONTRACTOR OVERSIGHT. For projects involving constructiou or contractor oversight, Clicnt acknowledges tbat under generally accepted professional practice, interpretations of construction documents or field plans in the field are normally required, and that performance of construction-related services by tbe design professional for the project permits errors or omissions to be identified and corrected at comparatively low cost. Client agrees to bold proSource barmless from any claims resulting from performance of construction-related or contractor oversight services by persons other than ProSource. Pro Source Technologies, Inc. October 4, 2007 Supplemental Ground Water Investigation Columbia Heights Industrial Park - Columbia Heights, Minnesota Page 4 9. INSURANCE. ProSource will maintain insurance coverage for Comprehensive General, Automobile and Worker's Compensation in amounts in accordance with legal, and ProSource's business, requirements. Certificates evidencing such coverage will be provided to Client upon request. 10. INDEMNITIES. To the fullest extcnt pennitted by law, ProSource shall indemnify and save harmless Client from and against loss, liability, and damages sustained by Client, its agents, employees, and representatives by reason of injury or death to persons or damage to tangible property to the extent caused directly by the willful misconduct or failure to adhere to the standard of care described in Paragraph 1 above of ProSourcc, its agent or employees. To tbe fullest extent permitted by law, Client shaH defend, indemnify, and save hannless ProSouTee, its agents, employees, and representatives from and against loss, liability, and damages (including reasonable litigation costs) arising from or relating to claims for injUlY or death to persons, damages to tangible property, or other losses, alleged to be caused by any of the following: (a) any ~mbstance, condition, element, or material or any combination of the foregoing (i) produced, emitted or released from Project (ii) tested by ProSource under this Agreement, or (iii) used or incorporated by ProSouree in the Services; or (b) operation or management of the Project. Client also agrees to require its construction contractor, if any, to include ProSource as an indemnitee under indemnification obligation to Client. 11. LIMITATIONS OF LIABILITY. No employee or agent of ProSource shall have individual liability to Client. Client agrees that, to the fullest extent permitted by law, ProSource's liability to Client for any and all injuries, clairns,losscs, expenses or damages whatsoever arising out of or in any way related to the Project or this Agreement from any causes including, but not limited to, ProSource's negligence, errors, omissions, strict liability, or breach of contract shall not exceed the total compensation received by ProSource under this Agreement. If CHent desires a limit of liability greater than tbat provided above, Client and ProSourcc shall include in Part III of this Agreement the amount of such limit and the additional compensation to be paid to ProSource for assumption of such additional risk. IN NO EVENT AND UNDER NO CIRCUMSTANCES SHALL PROSOURCE BE LIABLE TO CLIENT FOR CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES. 12. ACCESS. Client shall provide ProSource safe access to any premises necessary for ProSouree to provide services. 13. REUSE OF PROJECT DELIVERABLES. Reuse of any documents or other deliverables, including electronic media, pertaining to the Project by Client for any purpose other than that for which such documents or deliverables were originally prepared, or alteration of such documents or deliverables without written verification or adaptation by ProSouree for the specific purpose intended, shall be at the Client's risk. Client agrees to defend, indemnify, and hold harmless ProSource from all claims, damages~ and expenses (including reasonable litigation costs), arising out of such reuse or alteration by Client or others acting through Client. 14. AMENDMENT. This Agreement, upon execution by both parties hereto, can be amcnded only by a writteu instrument signed by both parties. 15. ASSIGNMENT. Except for assignments (a) to entities which control, or are controlled by, tbe parties bereto or (b) resulting from operation of law, the rights and obligations of this Agrcement cannot be assigned by eitber party without written pennission of the other party. This Agreement shall be hinding upon and inure to the benefit of any pennitted assigns. 16. STATUTES OF LIMITATION. To the fullest extent pennitted by law, parties agree that, except for indemnification, the time period for bringing claims under this Agreement shall expire one year after Project completion. ProSource Technologies, Inc. October 4, 2007 Supplemental Ground Water Investigation Columbia Heights Industrial Park - Columbia Heights, Minnesota Page 5 17. PREVAILING PARTY LITIGATION COSTS. In the event any actions are brougbt to enforce tbis Agreement, the prevailing party shall be entitled to collect its litigation costs from the other party. 18. NO WAIVER. No waiver by eitbcr party of any default by the other party in the performance of any particular section of this Agreement shall invalidate any other section of this Agreement or operate as a waiver of any future default, whether like or different in character. 19. NO THIRD-PARTY BENEFICIARY. Nothing contained in this Agreement, nor the performance of the parties hereunder, is intended to benefit, nor shall inure to the benefit of, any third party, including Client1s contractors, if any. 20. SEVERABILITY. TIle various terms, provisions and covenants herein contained shall be deemed to be separate and severable. and the invalidity or unenforceability of any of them shall not affect or impair the validity or enforceability of the remainder. 21. AUTHORITY. The persons signing tbis Agreement warrant that they bave the authority to sign as, or on behalf of, the party for whom they are signing. ProSource Technologies, Inc. October 4, 2007 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) eetlnq 0 cto er 23, AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO: 9 DEPARTMENT:EDA DIRECTOR APPROVAL ITEM: Adopt Resolution 2007-21 and BY: Robert Streetar BY: 2007 -22, EDA Budget for 2008 DATE: October 18, 2007 M fOb 2007 BACKGROUND: This memorandum presents the proposed 2008 Economic Development Authority (EDA) budget. The focus of the EDA since 2002 has been redevelopment of specific areas and the improvement of the housing stock. The EDA budget for 2008 is $274,863. The budget allows the continued implementation of the EDA's priorities related to redevelopment, and housing. The EDA raises this amount through two levies. The EDA levy raises $78,622, and the HRA levy raises $196,241. These levies fund the authority staffing and supplies. Subsequently, the EDA must: 1. Pass a resolution approving and recommending the EDA Budget of $274,863 and a levy of $78,622 to the City Council for approval. 2. Pass a resolution approving and levying, subject to City Council approval, the special benefit levy of $196,241. RECOMMENDATION: Staff recommends Adoption of EDA Resolutions 2007-21 and 2007-22, adopting the 2008 budget and levies, subject to approval by the City Council. RECOMMENDED MOTIONS: Motion: Move to adopt EDA Resolution 2007-21, being a Resolution of the Columbia Heights EDA adopting the 2008 Budget of $274,863 and a levy of $78,622 and recommending approval of the same to the City Council. Motion: Move to adopt EDA Resolution 2007-22, being a Resolution of the Columbia Heights EDA approving a special benefit levy of $196.241, and recommending the same to the City Council. EDA ACTION: H:\Consent 2007\EDA Budget Resolutions ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS EDA RESOLUTION 2007-21 RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS (EDA) ADOPTING A BUDGET AND SETTING THE EDA LEVY. BE IT RESOLVED By the Columbia Heights Economic Development Authority (EDA) of Columbia Heights, Minnesota as follows: WHEREAS, the Columbia Heights City Council established the Columbia Heights Economic Development Authority January 8, 1996 pursuant to Minnesota Statutes 469.090 to 469.1081; and WHEREAS, the City Council has given to the EDA the responsibility for all development and redevelopment projects and programs; and WHEREAS, the EDA is authorized under State Statutes, Section 469.107 to levy a tax on its area of operation for the purposes authorized under State Statues 469.090 to 469.1 081, subject to consent by the City Council. NOW, THEREFORE BE IT RESOLVED BY THE EDA FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA THAT: 1. The EDA adopts and recommends to the City Council for approval a budget of $274.863 for year 2008. 2. The EDA adopts and recommends to the City Council for approval a levy of $78.622 for year 2008. The Executive Director is instructed to transmit a copy of this resolution to the City Manager and Finance Director/City Clerk of the City of Columbia Heights, Minnesota. APPROVED THIS_ DAY OF MOTION BY: SECONDED BY: ROLL CALL: AYES: NAYS: ,2007. Attest by: Walter R. Fehst, Executive Director Gary L. Peterson, President COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2007-22 AUTHORIZING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL OF A BUDGET FOR FISCAL YEAR 2008 WHEREAS, pursuant to Minnesota Statutes, Section 469.090 to 469.1081 ("EDA Act") the City of Columbia Heights ("City") created the Columbia Heights Economic Development Authority (the "EDA"); and WHEREAS, pursuant to City Resolution 2001-62 and Ordinance No. 1442, the City Council granted to the EDA all powers and duties of a housing and redevelopment authority under the provisions of Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act"), except certain powers that are allocated to the Housing and Redevelopment Authority in and for the City of Columbia Heights (the "HRA"); and WHEREAS, Section 469.033, Subdivision 6, of the HRA Act permits the EDA and HRA, together, to levy and collect a special benefit levy of up to .0144 percent of taxable market value in the City upon all taxable real property within the City; and WHEREAS, the EDA desires to levy a special benefit levy in the amount of .0144 percent of taxable market value in the City; and WHEREAS, the EDA understands that the HRA does not expect to levy a special benefit tax for fiscal year 2008; and WHEREAS, the EDA has before it for its consideration a copy of a budget for its operations for the fiscal year 2008 and the amount of the levy for collection in 2008 shall be based on this budget. NOW, THEREFORE, Be It Resolved by the Board of Commissioners of the Columbia Heights Economic Development Authority: 1. The budget of $274.863 for the operations of the EDA presented for consideration by the Board of Commissioners of the EDA is hereby in all respects approved. Such budget includes the amount the EDA requests (by separate resolution) to be levied by the City under Minnesota Statutes, Section 469.107, together with the amount to be levied hereunder by the EDA under Minnesota Statutes, Section 469.033, subdivision 6. 2. Staff of the EDA are hereby authorized and directed to file the budget with SJR-236025vl CL205-J the City in accordance with Minnesota Statutes, Section 469.033, Subdivision 6. 3. There is hereby levied, subject to the approval of the City Council of the City, a special benefit levy pursuant to Minnesota Statutes, Section 469.033, Subdivision 6, in the amount equal to the lesser of a levy at a rate of .0144 percent of taxable market value in City, or $196,241 with respect to taxes payable in calendar year 2008. 4. Staff of the EDA are hereby authorized and directed to seek the approval by resolution of the City Council of the City of the levy of special benefit taxes in 2008 and to take such other actions as are necessary to levy and certify such levy. Motion by: Second by: Attest by: Motion passed this day of ,2007. Walter R. Fehst, Executive Director Gary L. Peterson, President SJB-236025vl CL205-3 2 COMMUNITY DEVELOPMENT 201-46310 City of Columbia Heights 2008 Budget work sheet Department Proposed 201 COMMUNITY DEVELOPMENT FUND Actual Actual Adopted Department Manager Council 46310 COMMUNITY DEVELOPMENT ADMIN Expense Expense Budget . Proposed Proposed Adopted Line Item Description 2005 2006 2007 2008 2008 2008 PERSONAL SERVICES 1000 ACCRUED SALARIES 1010 REGULAR EMPLOYEES 155,297 164,913 162,935 162,934 162,934 1011 PART-TIME EMPLOYEES 1012 SEASONAL EMPLOYEES 13,297 1020 OVERTIME-REGULAR 155 386 1,500 1,500 1,500 1021 OVERTIME-PART-TIME 1030 VACATION & SICK 2,065 5,500 1050 SEVERANCE PAY 1070 INTERDEPARTMENTAL LABOR SERV (41,498) (34,013) 1080 INTERDEPARTMENTAL LABOR CR 1210 P.E.RA CONTRIBUTION 8,596 9,874 10,197 10,583 10,583 1215 DEFERRED COMP CONTRIBUTION 1220 F.I.CA CONTRIBUTION 13,076 12,923 12,522 12,580 12,580 1225 FLEX BENEFIT FICA 1300 INSURANCE 12,924 14,651 14,172 16,812 16,812 1400 UNEMPLOYMENT COMPENSATION 1510 WORKERS COMP INSURANCE PREM 1,030 887 1,698 755 755 1700 ALLOCATED FRINGE 1800 INTERDEPARTMENTAL FRINGE CR TOTALS: PERSONAL SERVICES 164,943 175,121 203,024 205,164 205,164 SUPPLIES 2000 OFFICE SUPPLIES 1,419 1,559 1,351 1,351 1,351 2010 MINOR EQUIPMENT 217 2,036 1,283 1,283 1,283 2011 COMPUTER EQUIPMENT (65) 1,029 1,029 1,029 2020 COMPUTER SUPPLIES 946 770 158 158 158 2030 PRINTING & PRINTED FORMS 96 356 356 356 2070 TRAINING & INSTR SUPPLIES 124 2160 MAl NT. & CONSTRUCT MATERIALS 2171 GENERAL SUPPLIES 176 283 453 453 453 2175 FOOD SUPPLIES 79 152 2280 VEHICLE PARTS 2282 GAS, OIL, LUBRICANTS TOTALS: SUPPLIES 2,991 4,800 4,630 4,630 4,630 OTHER SERVICES & CHARGES 3041 ATTORNEY FEES-CIVIL PROCESS 3050 EXPERT & PROFESSIONAL SERV. 7,185 12,969 80,000 30,000 30,000 3105 TRAINING & EDUC ACTIVITIES 1,932 2,761 2,500 3,996 3,996 3120 EDUCATIONAL REIMBURSEMENT 3210 TELEPHONE & TELEGRAPH 1,783 1,445 1,124 1,485 1,485 3220 POSTAGE 670 614 509 740 740 3250 OTHER COMMUNICATIONS 47 32 3310 LOCAL TRAVEL EXPENSE 19 151 615 615 615 3320 OUT OF TOWN TRAVEL EXPENSE 673 3410 ADVERTISING EMPLOYMENT 3430 ADVERTISING OTHER 3500 LEGAL NOTICE PUBLISHING 475 475 475 3600 INSURANCE & BONDS 4,287 6,741 6,741 4,170 4,170 P3 3810 ELECTRIC 8 3820 WATER 3830 GAS 3840 REFUSE 3850 SEWER 4000 REPAIR & MAl NT. SERVICES 2,815 2,502 3,000 3,000 3,000 4050 GARAGE, LABOR BURD. 4100 RENTS & LEASES 30 35 4200 PROGRAM ACTIVITIES 4300 MISC. CHARGES 4330 SUBSCRIPTION, MEMBERSHIP 1,068 1,164 1,360 1,360 1,360 4342 PROPERTY DAMAGE 4374 EMPLOYEE RECOGNITION 4376 MISCELLANEOUS CIVIC AFFAIRS 4380 COMMISSION & BOARDS 975 876 1,425 1,425 1,425 4390 TAXES & LICENSES 975 975 975 4395 STATE SALES TAX 116 4500 ADMINISTRATIVE EXPENSES 4600 LOANS & GRANTS 4700 CREDIT INVESTIGATION 4800 COLLECTION LOSSES TOTALS: OTHER SERVICES & CHARGE 20,927 29,971 98,724 48,241 48,241 CAPITAL OUTLAY 5110 LAND 5120 BUILDING & IMPROVEMENT 5170 OFFICE EQUIPMENT 11,022 TOTALS: CAPITAL OUTLAY 11,022 OTHER FINANCING USES 7100 OPER. TRANSFER OUT - LABOR 17,506 11,494 10,850 11,133 11,133 7200 TRANSFER OUT TO CDBG 7280 TRANSFER OUT TO CAP PROJ 7413 TRANSFER TO CAP IMP DEVELOP 8100 CONTINGENCIES 5,695 5,695 TOTALS: OTHER FINANCING USES 17,506 11,494 10,850 16,828 16,828 TOTALS: COMMUNITY DEVELOPMENT, 217,389 221,386 317,228 274,863 274,863 TOTALS: COMMUNITY DEVELOPMENT F' 217,389 221,386 317,228 274,863 274,863 GRAND TOTALS: 217,389 221,386 317,228 274,863 274,863 P4 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY ee Inq 0 : coer , AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO: 10 DEPARTMENT: DIRECTOR Community Development APPROVAL ITEM: Acquisition of 3805 2no Street BY: Kirsten Partenheimer BY: DATE: October 18, 2007 M t' f 0 t b 23 2007 BACKGROUND: The purpose of this memorandum is to ask Commissioners to authorize staff to negotiate a purchase agreement for the residential property located at 3805 2nd Street NE for the purpose of redeveloping it from a vacant and burned out single-family home into two new single-family homes. The rental property currently contains a small single-family home, which is uninhabitable due to a recent fire. Property Background The home, which was built in 1922 and has approximately 732 square feet of living space, is on a corner lot measuring 80' x 130'. Zoned R2-A (One- and Two-Family Residential District) the lot is comprised of two legal lots of record, facing Second Street. (Please see attached photographs of existing structure.) A fire on September 7, 2007 damaged the home and the building official has posted it as uninhabitable. When the owners, Lisa and Steve Petersen, determined that it would be unprofitable to repair the property, and were unable to find new investors, they approached the City of Columbia Heights, to determine if the City would be interested in negotiating a sale price. The land and improvements are assessed at $139,200 and the land is assessed at $91,600 for pay 2008. The property owner is willing to sell the property for $100,000, plus closing costs and outstanding assessments, which would result in the purchase price of approximately $105,000. Redevelopment Project Upon acquisition of the property, GMHC would build a similar project to the one at 4141 Jefferson Street NE. The GMHC would demolish the existing home and build two new single- family for sale homes. Each home would be two stories with three bedrooms and two and a half baths and would comprise approximately 1,650 square feet. Both of these homes would sell for a target price of $235,000. Demolition could begin as early as December 2007, with construction occurring soon thereafter. Marketing would begin simultaneously with demolition. (Please see attached photographs of GMHC homes previously constructed in Columbia Heights.) The table provides a quick look at the results of redeveloping this property. Before After Chanqe # of Single-Family Homes 1 2 1 Property Value $ 139,200 * $ 470,000 * $ 330,800 Property Tax $ 1,284 $ 4,335 * $ 3,051 * Approximate The cost to acquire the property, demolish the existing structure, and construct two new homes is estimated to be $556,647. The sale of both homes would generate $470,000 of revenue. Subsequently, in order to successfully redevelop the property, the project is C:\Documents and Settings\CCH-User\Local Settings\Ternp\EDA Acquisition of 3805 2nd St.doc estimated to require $86,647 of funding assistance to make it feasible. Gap funding assistance could come from the new Anoka County HRA levy the City Council approved on September 10, 2007. Funds would initially come from Fund 420 - Capital Improvement - Development Fund, and would be repaid after January 1 with the Anoka County HRA levy funds. To access these funds, the City Council will need to pass a resolution requesting the funds from the Anoka County HRA at their November 26,2007 meeting. Karen Skepper from Anoka County indicated this could be a qualified expenditure. Comprehensive Plan By facilitating the redevelopment of this property, the EDA would be implementing two goals of the Housing component of the Comprehensive Plan. These goals and their corresponding action steps are listed below. Goal: Promote and preserve the single-family housing stock as the community's strongest asset. . Action Step: The City will acquire and demolish the most seriously deteriorated single-family homes and work with the private sector to develop appropriate replacement housing. . Action Step: The City will acquire and assemble residential lots, as opportunities arise, for the purpose of developing infill housing. Goal: Provide a variety of life cycle housing opportunities within the community. . Action Step: The City will foster partnerships with the private sector to help diversify housing in the community. Housing Maintenance Plan 2008-2017 The EDA approved the 10-Year Housing Maintenance Plan to provide to maintain the City's housing stock. Of the five programs implemented as part of the plan, the redevelopment of 3805 2nd Street would meet the intent of the Single-Family Home Replacement Program, which provides funding for the replacement of the most blighted and dilapidated single-family detached homes within the city with new single-family detached housing. Summary In summary, the EDA is presented with an opportunity to remove a vacant and blighted home and replace it with two new single-family for-sale homes with target sales prices of $235,000. To accomplish this task, the City would partner with GMHC as the homebuilder as well as provide financial assistance to GMHC to make this redevelopment feasible. This redevelopment would implement the goals of the Comprehensive Plan and the Housing Maintenance Plan, and would result in a much-needed physical improvement to the neighborhood. Therefore, staff is requesting authorization to negotiate a purchase agreement with the owners of 3805 Second Street NE, and prepare a development agreement between the EDA and GMHC to be presented for approval at the November 27, 2007 EDA meeting. If an agreement can be reached with the property owners, staff will present the EDA with a contract agreement with GMHC at its November 27, 2007 meeting. C:\Documents and Settings\CCH-User\Local Settings\Temp\EDA Acquisition of 3805 2nd St.doc RECOMMENDATION: Staff recommends the EDA authorize staff to negotiate a purchase agreement with the owners of 3805 2nd Street NE for a total price, including closing costs and outstanding assessments, not to exceed $105,000. RECOMMENDED MOTION: Move to authorize staff to negotiate a purchase agreement with the owners of 3805 2nd Street NE for a total price, including closing costs and outstanding assessments, not to exceed $105,000. EDA ACTION: C:\Oocuments and Settings\CCH-User\Local Settings\Temp\EDA Acquisition of 3805 2nd St.doc ~~ I! \\ I ~- ,\ I 1 i---j ---.-----l 1- I" " --J I ---j Ii ~-\ :--1 Ii I ___ L-_,,-----' -,-'~ , I I -1~__ ---~ II iw !i lj 12 'I if- -'L ,w 1,- iW !o:: -if- [en --.l~ IN -IL " Ii I! I! -ji-- ,I !I ,--\1-.-----i .J ----< ----l 11- Ii I, 1,("'- \i I II 1 ----l [-------A ,~ ,~, II , -11-----l 'I i ----"i r"'-""j -----l L"'--"""--1 Ii ' Ii --j --J L-----1 \1 I '\ I '!--- ' il i -, I \L-__----! I: ! ,I I iL- j 3805 2ND STREET NE _\ 'I I \ - -- \ \-- , \/ I \ \ / 'c I \ I ,iI ! III ;----, \ I ! I \ \ -i1 \ I --jr-----" I Ii -,I L --',I I ' ~---f ~-_.-----i j' \ i 1 ----.J ! Ii ! :11--1 , ' ' r--'- 11 l---- - \,\ '] I Ii t,-.--- \ \j \ I 11--- --i !---I' I , ~ I ii---- ---1\- , ----1 H~- LJl- r--"'l t -j II -----, r--~ : -I l----i II I ,~ o I Legend D Redevelopment Area I' " ! City Parcels " r// ""'- " ;', / ! ~ / j . ! I / '--." / / '----- / \ \ \ \, I , \ \ , ..-- -\ \ ,I ...-- \ \ \ \ / /~\ / , .../ ),,\ \ , " '\ \ ,/ \ ' \/ \ / / [I, ! \ l--.-~ ! -,- I _,''''_ I I I " r- -II i--- -j [-- I r- .----11 ii- II \1 I ! -~- -i\ l~_ JI 38TH AVE NE Ii I [ L.-----J 1\ I 1'-- ~'I! ! I --1 r-- ~I I 'I ' Ii [--I ---1 L--...---1 ' \ 1 \r--: I 11-----1 [---II i r 1\- ! ,--j \-~ ! !I ! I ' , _---11- -1 I ' , , II -- \1 il , 0.05 i \ i \ \ i -- / // 'x.'/ I"~ ---'1.., -, -! ---.Ji 1 I ! , I --.l ~) / /f~ /; , ;' , ; ! I ! , J'--_ I f-- \ - I , I i ! -_1 1 ,~- , ! ! I ! i I ----J i I --' i I ~ I- I I 1----1 I I I ' I I I ! 0_1 Miles I I I I i--- I ! I 1 W ~ >- f- iii 0:: W ;:: Z ::::l I' , , I < i : Ll.L ii I N A Date: October 18, 2007. Prepared by: Kirsten Partenheimer, Community Development Specialist, City of Columbia Heights. 04;'~ Figure 1. View of property from 2ud Street. Figure 2. View of property from 38th Aveuue. .~ Figure 4. View of back of bouse. r ,-' -0 " .. = OJ) rz "- E o o .. -= ~ '" -= ,., c o '0 = '" = " -= '"' ~ ::;; '0 '" ,., o .. ~ ~ " '0 " .. rz or) " .. = OJ) rz '; '(j s~ o " OJ);S " " ;g~ " " ~ S .w ~ " " ,,"" s.... " 0 ~ - ".0 ~"" '" 00.0 " " ....0 ,,- ""... ~e "il E ';j - ~ - " " s " ~ " ~ ,..: ~ " "" &:: ==<,.<.,,,,,,~-,,-_. " --:;::::.--:-.-:.'::..:~'":~"-::--'~'1~~,~ <l " " Q." ~'" ~~ "... ~ 0 .9", " ~ _'0 " .- s .. .- " ='" "s :: ",oS: ;::: Q.l ''OJ ~ " s ~ o :tl E:E '0 .. " 0 ,Q ... -Q. ";c ~ '0. " 00.. .. >, ~ ... ~ ... " " "'..J " ~ = o :I: OJ ';:; l:: ... <0 0 _OJ) . " = -;; :E sa 't)J}'- 0 .- = 0 ...<Xl... c " '" " ~ :;a " '" ~ ~ " '0 .;;; " ,Q .r ~ = o '" " '" ~ .... o " " ... " = o S S o " >, c o 0; " ... = OJ) iZ Figure 9. The homes GMHC would coustruct at 3805 2"d Street are similar to these here. Figure 10.