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HomeMy WebLinkAbout1991 12-16 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER DECEMBER 16, 1991 (following adjournment of City Council meeting) 1. Call to Order 2. Roll Call 3. Approval of Minutes: a. November 25, 1991 - EDA Special Session b. November 25, 1991 - HRA Special Session C. December 2, 1991 - EDA Special Session 4. Public Hearing: a. Continuation of Public Hearing Regarding the Sale of Land by the Economic Development Authority for the City of Brooklyn Center -This public hearing was continued at the October 21, 1991, EDA meeting to December 16, 1991. This is a continuation of a public hearing on the proposed sale of the property at 5538 Colfax Avenue North. Minnesota Statute 469.029, Subdivision 2, requires holding a public hearing on EDA owned property prior to sale. 5. Resolutions: a. Establishing Endowment Account and Authorizing Certain Housing Activities and programs to be Undertaken by the Economic Development Authority in and for the City of Brooklyn Center, Minnesota b. Approving One (1) Brooklyn Center Economic Development Authority Grant (File No. H96) 6. Adjournment 4- 't MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHO RITY OF THE CITY OF BROOKLY CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION NOVEMBER 25, 1991 CITY Y BALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulsen at 9:23 p.m. ROLL C ALL President Todd Paulson, Commissioners Celia Scott, Jerry Pcdlar, and Philip Cohen. Commissioner Dave Rosene arrived at 9:31 p.m Also present were City Manager Gerald Splinter, Finance Director Paul Holmlund, City Attorney Charlie LeFevere, Assistant Finance Director Charlie Hansen, EDA Coordinator Brad Hoffman, City Assessor Mark Parish, EBHC Manager Judith Bergeland, Staff Accountant Tim Johnson, and Council Secretary Ann Odden. REVIEW OF THE 1992 PROPOSED EDA BUDGET The EDA Coordinator reviewed the 1992 proposed special operating fund EDA bud�ct of $550,331. He noted the 1992 proposal included requests for the following: a micro computer for the Assistant EDA Coordinator, funding for the continuation of the Earle Brawn Neighborhood Housing Newsletter, and professional services to assist with the development of legislative programs and various housing programs. The EDA Coordinator outlined the 1992 goals and plans for the FDA's main programs and the impact on the budgct of each Administrative costs were budgeted at $165,434. The EDA Rehabilitation Grant Program was budgeted at $140,761 and would provide funding for 13 home improvement rehabilitation grants and associated adinhiistrativc expenses. The Scattered Site Redevelopment Program was budgeted at $75,000 and would provide funding for one blighted, single- family property for demolition and redevelopment. The EDA's Spot Renewal Program was budgeted at $108,136 and would provide for the acquisition and demolition of two single - family properties. 11/25/91 - 1 - I The Rental -to -Owner Conversion Program was budgeted at $61,000 and would provide funding for approximately 10 Conversions of single- family rent property to owner - occupied housing, The Earle Brown Heritage Center was budgeted at $1,105,518 for expenditures, and $93,846 for revenues, which would result in a loss of $151,672, which would be funded from the Earle Brown Tax increment Fin � T Fina TIF District. net. The 199.. bud �v g� ) budge as focused mainly on promotion of the center and efforts to reduce operational costs. A 24°lo increase in revenue projections for 1992 was anticipated. The EDA Coordinator indicated new accounting procedures were being implemented which would help identify profit and loss centers. The ongoing goal was to make the Heritage Center self- sustaining. Following the EDA Coordinator's presentation, he responded to the Commission's questions on various line items. The EDA Coordinator indicated the classification on some apartment buildings had been changed to Title II to reduce taxes, Commissioner Cohen questioned how that impacted the value, and the EDA Coordinator responded that the value was reduced by approximately half of one, percent. Commissioner Cohen questioned the amount per unit of the reduction and suggestcd a rent reduction be explored. The EDA Coordinator did not have figures on the impact per unit, but indicated he felt a rent reduction was possible, and he would review this further. President Paulson questioned the $27,000 budgeted for dues, and the EDA Coordinator indicated the cost was primarily for participation in the North Metro Mayers organization. Commissioner Scott questioned what had happened to the $60,000 in the 1991 budget for legal services, and the EDA Coordinator responded the money was part of the fund balance. President Paulson noted the 1991 budget for the Rehabilitation Grant Program had been approximately $88,000, as compared to $140,000 in 1992, The Scattered Site Redevelopment Program had a 1991 budget of $140,000 as compared to $75,OQQ in 1992, He questioned whether the focus on the two programs had been transposed. The EDA Coordinator indicated both programs served some of the same functions, and both received some funding from Urban Hennepin County Community Development Block Grant (CDBG) funds. Depending on what funding the EDA received for each program, dollars wcrc allocated to one or the other of the two programs. Also, money was re- programmed between the two programs as needed throughout the year. He indicated there was not a specific shift in the EDA 's direction, but the 1992 budgeted amounts were the best estimates to date. He also indicated more time was allotted to use the funding in the Rehabilitation Grant Program, so more funds had been allocated. He noted any reprogramming of fiends would be done only at the. direction of the Commission. i 11/25/91 -2- President Paulson commented he felt it would be preferable to spend more dollars on • redevelopment rather than rehabilitat The EDA Director and the EUA Coordinator commented they agreed with that statement, and that was their intention. Thcy felt the funding schedule as proposed gave the EDA the most latitude in using the federal funds available for projects. In addition the EDA Coordina stated the EDA was looking for ways to fund some curb and gutter improvements through use of CDBG funds, and indicated those funds would come from the Rehabilitation Grant Program, President Paulson indicated no funds had been earmarked in the 1992 HDA Budget for a CommorcW/Industrial and Housing Study. He questioned whether the EDA was considering continuing this process. The EDA Coordinator indicated the study had been a one -time expenditure for a specific task that had been completed. The EDA had plans to develop an overall policy, which would be brought before the Commission sometime in 1992. President Paulson questioned whether dollars for the studies could be taken from CDBG funds. The EDA Coordinator indicated this was the case, and would come from the Rehabilitation Grant Program. Following discussion of the EDA Programs, the EDA considered the budget for the Earle Brown Heritage Center. The EDA. Coordinator noted the Hi odr i �° on e had • pp ash - negative project that needed further review. Some marketing efforts were being targeted at business training seminars as a potential source of revenue. He reported business on weekends was very good, and the Monday through Thursday time slot would become, a focus for new business. Commissioner Cohen questioned what approximate percentage of business persons attending Conventions stayed Overnight al the Ton, Judith Bergeland, FBFi(7 Manager, indicated speakers that were brought in usually chose to stay at the Inn, and estimated approximately 40% usage overall. In regard to the advertising and marketing program for 1992, Commissioner Pedlar indicated lie had been involved in interviews for various advertising agencies, and all had reported that the $55,000 budgeted for advertising in 1992 was not ade uatc. Although it was difficult q � cult to balance the Centers negative cash flow, advertising dollars were spent can tho premise that business would increase. He felt it was important to properly advertise the Center whilo it was still new, and advocated increasing the advertising and marketing appropriation to $120,000. Commissioner Pedlar noted the Center had spent $104,000 on advertising in 1991. He felt the presentations of the advertising agencies were very good and concluded Merrill - Bush, 11/25/91 -3- the current agency, was particularly impressive. He felt it was possible to get measurable results from the increase in funding. i The EDA Coordinator also noted the marketing strategy was shifting away from the fact the Center was a historic location, and toward the fact it was a first rate facility with excellent service. Commissioner Pedlar felt it was important to change this perception, since previously, some clients had incorrectly assumed the facility had dirt floor$, There was a motion by Commissioner Pedlar, and seconded by Commissioner Cohen to increase the 1992 funding for EDA promotional activities from $85,000 to $120,000. Commissioner Rosene indicated he felt advertising was important, but was concerned about finding a source for the; additional funding. The EDA Coordinator indicated a deficit of $151,000 was already projected for the Center in 1992, and that was based upon projections for an increase in business. If no increase was achieved, the deficit would be even larger. EBHC Manager Judith Bergeland felt the benefit of additional business offset the increase in promotional costs, Commissioner Cohen indicated this represented a financial risk, and President Paulson questioned what would occur if no additional business resulted. The EDA Director indicated the funds would come from the tax increment district. Commissioner Rosene and President Paulson expressed some apprehension at spending . more money without a clear source of revenue. Commissioner Scott felt since conventions were planned up to two years ahead of time, it might take some time for a payback to become obvious, but she felt this would eventually occur, Commissioner Cohen commented that he viewed the, Heritage Center budget differently than the City Council budget, in that it was a business, with the primary goal of making money. Therefore, it needed every opportunity to succeed. Vote on motion to increase funding for promotional activities: The motion passed unanimously. The Commissioners discussed the convention center, and the EDA Coordinator indicated certain market segments were being targeted through radio advertisements. President Paulson felt the EDA should consider diversifying this marketing approach. 'relcvision advertising was considcrcd too expensive to pursue at this time, but the Center was attcmpting to get a joint sponsor for some media t,-vents. Commissioner Rosenc suggested some center services might be exchanged for advertising services, if the opportunity arose. 11/25/91 - 4 - Commissioner Rosene requested a schedule for upcoming events at the Center, and EBHC Manager Judith Bergeland indicated she would put the Commissioners on the mailing list for activities. In regard to salaries and wages, President Paulson questioned why the figures were not always consistent. Tim Johnson, staff accountant, indicated the 1992 budgcjt inc:ludcd a change in the accounting procedures related to staff time. Staff time would be charged to various activities, which had not previously occurred. The change in numbers reflected a more accurate estimate of actual expenses incurred. President Paulson felt the City Council and the EDA staff salaries should be handled in a similar manner. He felt the EDA staff should not necessarily get an automatic increase. Mr. Johnson indicated the salary increase was not automatic, but would be voted upon by the Commission at a later date. The budget set aside funding for the possibility that an increase would occur, President Paulson felt he would be more comfortable if the policy was consistent with that of the City staff. The EDA Director indicated this could be done and this would be reviewed prior to the 1993 proposed budget. Commissioner Pedlar questioned the difference between the 1991 adopted budget for • salaries, and the 1992 requested amount. Tlic EDA Coordinator indicated the difference was approximately $20,000. Judith B. reported usage at the Center had increased in the past year, with October, 1991, showing a 45% increase in business over October, 1990. Mr. Johnson indicated it was difficult to accurately compare the 1991 budget with the 1992 budget, because the 1992 proposed budget was based upon a new and much more sophisticated system of reporting and accounting. Commissioner Rosene questioned why 60% of the budget for salaries was spent in three months of the year, and the EDA Coordinator responded those were the busiest wolnths of the year. In regard to the Heritage Center deficit, Mr. Johnson commented that it was subsidized by the TIF district. There would be a problem in 1992 because there would not tie enough TIF funding for the debt and the additional $35,000 in advertising approved by the Commission. In response to President Paulson's question, the EDA Coordinator indicated there were not many options, but there were two parcels of undeveloped land in the TIF district which might be added to the tax base. • 11 /25/91 -5 - Commissioner Cohen was interested in exploring ways to improve the TIF situation in that district, and suggested the possibility of expanding; the district. Various alternatives required the cooperation of the legislature and /ear the school district. Commissioner Cohen felt the school district would not be adverse to expanding the district, and felt further review was necessary to cone up with the most feasible plan. President Paulson questioned the accounting procedure used to handle the City's use of the facility. The FDA Coordinator indicated trade offs were not reflected, but were an inwrilal accounting function. The City's use of the facility was budgeted, however. RESOLUTION RESOLUTION NO. 91 -30 Commissioner Davc Rosene introduced the following resolution and moved its adoption: RESOLUTION APPROVING THE FINAL BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY BUDGET FOR THE YEAR 1992 PURSUANT TO MSA CHAPTER 469.033, SUBDIVISION 6 AND MSA CHAPTER 469.107, SUBDIVISION 1 The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Celia Scott, and the motion passed unanimously. ADJOURNMENT . There was a motion by Commissioner Cohen and seconded by Commissioner Scott to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 11:09 p.m. Todd Paulson, President I Recorded and transcribed by: Ann J, Oddcn Northern Counties Secretarial Service 112591 -6- t MINUTES OF THE PROCEEDINGS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE UITY UP' 131�UOIKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION NOVEMBER - 4 1 .5,1991 CITY HALL CALL ORDER The Brooklyn Center Housing and Redevelopment Authority met in special session and was called to order by Chairman Todd Paulson at 11:10 p.m. ROLL CALL Chairman Todd Paulson, Commissioners Celia Scott, Jerry Pedlar, and Philip Cohen. Also present were HRA Director Cierald Splinter, 11nance Director Paul Holmlund, City Attorney Charlie LeFevere, Assistant Finance Director Charlie Hansen, FDA Coordinator Brad Hoffman, City Assessor Mark Parish, Judith Beracland, EBHC Manager, Staff Accountant Tim Johnson, and Council Secretary Ann Odden. RESOLUTIONS RESOLUTION NO, 91 -03 Coaimi55ioncr Jerry Pedlar introduced the following resolution and moved its adoption: RESOLUTION APPROVING THE FINAL BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY BUDGET FOR THE Y EAR 1992 PURSUANT TO MSA CHAPTER 469.033, SUBDIVISION 6 AND MSA CHAPTER 469.107, SUBDIVISION 1 The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Philip Cohen, and the motion passed unanimously. RESOLUTION NO. 91 -04 Commissioner Jcrry Pedlar introduced the following resolution and moved its adoption: RESOLUTION ESTABLISHING THE FINAL TAX LEVY FOR THE BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUl'HOXITY FOR THE YEAR 1992 The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Philip Cohen, and the motion passed unanimously. 11/25/91 - 1 - ADJOURNMENT There was a motion by Commissioner Scott and seconded by Commissioner Rosene to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Housing and Redevelopment Authority adjourned at 11;12 p.m. Todd Paulson, President Recorded and transcribed by: Ann J. Oddcn Northern Counties Secretarial Service 11/25/91 - 2 - MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY 01e THE CITY OF BROOKLYN CE`N'TER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL. SESSION DECEMBER 2, 1991 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 9:23 p.m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Dave Rosene, and Philip Cohen. Also present were City Manager Gerald Splinter, City Attorney Charlie UFcvere, Director of Planning and Inspection Ron Warren, and Council Secretary Peggy McNabb. Commissioner Jerry Pedlar was absent. APPROVAL OF MINUTES NOVEMBER 4. 1991 - SPECIAL SESSION There was a motion by Commissioner Cohen and wit,vndcd by Coiniuissioner Scott to approve the minutes of the November 4, 1991, EDA meeting. The motion passed unanimously, R ESOLUTION S RESOLUTION AMENDING THE 1991 ECONONITC DEVELOPMENT AUTHORITY BUDGET FOR THE DEBT SERVICE TRANSFER OF THE EARLE BROWN I-ARM TAX INCREMENT FINANCING DISTRICT FUND The City Manager presented a Resolution Amending the 1991 Economic Development Authority Budget for the Dcbt Service Transfer of the Earle Brown Farm Tax Increment Financing District Fund. In response to Commissioner Rosene's request for clarification of the amendment and where the funds are transferred from, the City Manager indicated the $400,000 originally budgeted in 1991 represents the 1991 payment of principal and interest; however, the year -end transfer from the tax increment fund needs to include the 1991 interest payment plus funds equal to the 1992 principal and interest payments. 12!"2!91 - 1 - RESOLUTION N0. 731 Commissioner Rosene introduced the following resolution and moved its adoption; RESOLUTION AMENDING THE 1991 ECONOMIC DEVELOPMENT AUTHORITY BUDGET FOR THE DEBT SERVICE TRAN OF THE EARLE BROWN FARM TAX INCRENMENT FINANCING DISTRICT FUND The emotion for the adoption of the foregoing resolution was duly seconded by t.:ommissioner Scott, and the motion passed unanimously. RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC DEVELQPMENT AU GRANT (1�'I NO. H95) The City Manager presented a resolution approving one application for a rehabilitation grant in a maximum amount of $10,000 (File No. H95). RESOLUTION NO, 91 -32 Commissioner Scott introduced tho following resolution and moved its adoption: RESOLUTION APPROVING ONE (I) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANT (FILE. NO. H95) i w The motion for the adoption of the forego resolution as duly seconded by Commissioner Roscne, and the motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Rospne and seconded by President Paulson to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 9 :27 p.m. Todd Paulson, President Recorded and transcribed by: Peggy :McNabb Northern Counties Secretarial SQrvice I 12/2/91 -2- I CITY OF BROOKLYN CENTER Council Meeting Date 12/16/91 Agenda Item Number REQUEST FOR COUNCIL CONSIDERATION rrrrrrrrrr . ............*.**..**..**.**...... ... *........................ ITEM DESCRIPTION: PUBLIC HEARING ON SALE OF EDA OWNED PROPERTY AT 5538 COLFAX AVENUE NORTH DEPT. APPROVAL' Assistant EDA Coordinator Signatur - title 1 araaaarr * *arra ** war * * *rrwrrx+c * *rx* ** way*** rrr��r* a*** ay�rx* �c94* �+ xiv' ��F *�t�P'�iliE_ *�ar.za *rarxz* *roc *r MANAGER' REVIEW/RECOMMENDATION: S No comments to supplement this report Comments below /attached aarrrwaaawaraaaaraaaarrraraaaarrawr* a* rrararrrarrrrrrrrararaaaaaaaaraaarrrrraaaaararr SUMMARY EXPLANATION: (supplemental sheets attached Yes ) • The Brooklyn Center Economic Development Authority continued the hearing on the sale of the EDA owned property located at 5538 Colfax Avenue North from its October 21, 1991, meeting to December 16, 1991, in order to allow staff time to resolve certain issues with regard to the structuring of the purchase agreement for the property. The difficult in finalizing the transaction resulted from trying meet the articular needs of the purchaser Ion with Y 9 y g to p p se along the requirements of the Department of Housing and Urban Development (HUD), which must be met since the project was funded 100% with CDBG funds. The purchaser plans to build a single family home on the property and intends to occupy that home after he sells his present home. He needs to sell his existing home before making the payment on the lot for his new home. The requirements of the Department of Housing and Urban Development relative to this transaction are as follows: 1. The EDA is required to pay to HUD an amount equal to the fair market value of the property, which in this case has been established at $19,500. The majority of this dollar amount will be returned to the EDA's Scattered Site program for future projects. 2. If construction begins on the single family home before the lot sale is finalized, a different set of HUD requirements apply to the project. If the single family home is completely constructed and the purchaser pays the EDA the $19,500 for the lot, the transaction is complete and the $19,500 (fair market value of the lot) is paid to HUD by the EDA. However, if for any reason there are any problems with the construction and the house is left uncompleted, a different set of HUD requirements come into play. In this case, HUD requires a dollar amount to be repaid to them by the EDA which is greater than the $19,500 fair market value of the lot and is based on the total percentage of HUD funds used on the project. In other words, instead of owing • $19,500 to HUD, the EDA would owe the percentage of the total value of the project represented by HUD funds used in the project. This requirement is shown by the following example: Total funds expended in the 5538 Colfax Avenue project including acquisition, demolition, legal expenses, etc. $ 54,000 Total value of the partially constructed single family home $ 60,000' *This assumes the builder is unable to complete the project. TOTAL PROJECT COST $114,000 Percentage of the project represented by HUD funds is 47 %. Amount to be repaid to HUD in this situation would be 47% of $114,000, or $53,580. The mechanism for making this transaction work and meeting the purchaser needs and HUD's requirements is to sell the property on a contract for deed basis so that the 519,500 would be paid to the EDA when the Certificate of Occupancy is issued for the new home to be built on the lot. The contract for deed would allow the purchaser to begin building on the property while providing protection for the EDA by requiring the purchaser to provide adequate liability insurance and property damage insurance. The property damage insurance would be in the amount of the fair market value of the property ($19,500) plus the amount of any construction financing. With regard to the liability insurance, I would recommend the amount of liability insurance be the same as that required for participation in the EDA's rehabilitation grant program and described in Exhibit D which is attached to the purchase agreement. Additional terms of the contract for deed include down payment (earnest money) with the remaining amount to be paid, with no interest accruing, on the earlier of the date of delivery to the purchaser of a certificate of occupancy for the home or a specific date stipulated in the contract for deed. Due to the purchasers present work schedule required to complete a home construction project, he has been unavailable to negotiate and finalize the terms of the purchase agreement and contract for deed. However, I believe the EDA can, after reviewing the terms of the purchase agreement and contract for deed, close the public hearing on the terms and conditions of the sale of the property. After the final negotiations with the purchaser are completed I would return to EDA for final approval of the sale. RECOMMENDATION: Motion to Close the Public Hearing on the Sale of Property Located at 5538 Colfax Avenue North, Brooklyn Center. PURCHASE AGREEMENT THIS AGREEMENT, made and entered into this day of , 19 - If by and between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER, a Minnesota municipal corporation with offices at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430 (the "Seller ") and DAVID BRANDVOLD (the "Buyer "). WITNESSETH: 1. Description of Land Sold Seller, in consideration of the covenants and agreements of Buyer hereinafter contained, agrees to sell and convey unto Buyer, or its successors and assigns, by contract for deed in the form attached hereto as Exhibit A, upon the prompt and full performance by Buyer of its part of this Agreement, the tract of land lying and being in the County of Hennepin, legally described in Exhibit "B" attached hereto (hereinafter "land sold herein" or the "Property "). 2. Purchase Price Buyer, in consideration of the covenants and agreements of Seller contained herein, hereby agrees to purchase the Property and agrees to pay to Seller as and for the purchase price the sum of Nineteen Thousand Five Hundred Dollars ($19,500) (the "Purchase Price "). The Purchase Price shall be payable by Buyer to Seller in the manner and at the times following, to wit: (a) cash, earnest money, receipt of which is hereby acknowledged. (b) on the earlier of (i) delivery to the Buyer of a certificate of occupancy for a detached single - family residence on the Property, and (ii) , 1992; by cash, certified or cashier's check or wire transfer of guaranteed funds to seller's bank account. 3. Taxes and Special Assessments Buyer and Seller agree that a pro rata adjustment of property taxes due and payable in 1992 shall be made as of the Closing Date. There are no special assessments currently levied against the Property. Sewer Avail- ability Charges (SAC) attributable to the property shall be paid by Seller. 4. Right of Entry Buyer shall have the right, prior to the Closing Date, to enter upon the land sold herein for the purpose of taking soil tests, borings, making surveys and maps and performing preliminary investigative work in connection with the Buyer's purchase of land sold herein, provided, however, that Buyer shall indemnify and hold harmless Seller from any mechanic liens or any claim arising out of such preliminary development work by Buyer. 5. Closing Date The Closing Date shall be held on or before ,1992. The closing shall take place at the offices of Holmes & Graven, Chartered, 470 Pillsbury Center, Minneapolis, Minnesota 55402. At the closing, Seller and RLP19353 P241 -9 Buyer shall deliver to one another the instruments and funds specified herein. Possession of the land sold herein shall, subject to the terms of Paragraph 4 hereof, be delivered to Buyer on the Closing Date. 6. Title Unless waived by Buyer, performance by Buyer hereunder shall be expressly contingent upon the Buyer being able to obtain, at his own expense, an Owners Title Policy in the amount of the Purchase Price, or other evidence of title satisfactory to Buyer, showing good and marketable title in Seller. Buyer shall be allowed ten (10) days from the date of this Agreement to investigate the state of title to the Property and to make any objections thereto, said objections to be made in writing or deemed to be waived. Pending cure of the objections, the payments hereunder required shall be postponed, but upon cure of the objection and within five (5) days after written notice, Buyer shall perform as provided in this Agreement. If the objections to title are not cured within one hundred and twenty (120) days from the date of written objection thereto as above provided, this Agreement shall, at the option of Buyer, be void and neither party shall be liable for damages hereunder to the other party; but if the objections shall be cured within said time, and Buyer shall default in any of the agreements and continue to default for a period of five (5) days after written demand by Seller upon Buyer setting forth the specific default of Buyer hereunder, then, and in that case, Seller may terminate this Agreement. 7. Warranties of Seller Seller represents and warrants, which representations of warranty shall be true as of the Closing Date and shall survive the Closing (and shall be a condition precedent of the obligations of Buyer hereunder) as follows: (a) There is no environmental litigation pending or threatened against the Property. (b) The Property is served by a sanitary sewer system and municipal water system. Buyer acknowledges that except as foresaid, the Property is being sold as is without any representations or warranties. 8. Notices All notices provided herein shall be given in person or sent by United States Mail, postage paid, to the parties at the following addresses (or such other addresses as either party may, from time to time, designate in writing to the other): BLP19353 BR291 -9 2 If to Buyer, to: David Brandvold 5345 Colfax Avenue North Brooklyn Center, MN 55430 If to Seller, to: Economic Development Authority In and For the City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 With copy to: Barbara L. Portwood Holmes & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 Deposit in United States Mail of said notice on the date such notice is to be given, or earlier, shall be deemed timely and acceptable. 9. Successors and Assigns; No Merger The terms, covenants and conditions of this Purchase Agreement shall be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto, and shall survive closing and shall not merge with any deed or other instrument of conveyance. Time is of the essence of all matters to be performed in this Agreement. 10. Documents to be Delivered at Closing The following documents shall be delivered at closing: By Seller: (1) Contract for Deed (2) A Seller's Affidavit, in standard form. (3) Owner's Duplicate Certificate of Title, if applicable. (4) Well Disclosure Certificate By Buyer: (1) A Certificate of Real Estate Value. (2) Affidavit of Purchaser of Registered Land, if applicable. 11. Remedies Upon Default In the event of default by Seller of any terms contained in this Agreement, Buyer shall have the right, at its option, to terminate this Agreement or to sue to enforce this Agreement by specific performance. In the event of default by Buyer, Seller shall have the right to terminate this Agreement as provided herein or by law, to enforce this Agreement by specific performance or to sue for damages. In the event of termination by Seller, Seller shall have the right to retain the earnest money as liquidated damages. 12. Design Approval Prior to construction of any improvements on the Property, Buyer shall submit to Seller a design proposal for such improvements for approval by the Seller. Seller shall approve construction of such improvements only upon a determination, in the absolute and sole discretion of Seller, that the public interests would be served by construction of such improvements. No improvements shall be constructed on BLP19353 BR291 -9 3 the Property which are not consistent with such approved design proposal. 13. Well Disclosure Statement Exhibit C attached hereto is a completed form of a Minnesota Well Disclosure Statement and is incorporated herein as if fully set forth herein. IN WITNESS WHEREOF, Buyer and Seller have executed this Purchase Agreement on the date and year first above written. By David Brandvold ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER, A Minnesota Municipal Corporation By Its President By Its Executive Director STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 1991, by David Brandvold. Notary Public STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 1991, by and the President and Executive Director respectively, of the Economic Development Authority in and for the City of Brooklyn Center, a Minnesota municipal corporation. Notary Public BLP19353 BR291 -9 4 EY1 1I.131T A CONTRACT FOR DEED Form No 56 -M N e —t. nn f,— 0-- —s nlenke WIT N1,11" D. C., _ %1 --p"I" l'rt�rn l�n ..r i'nrtnen h�o�rller No delinquent taxes and transfer entered; Certificate of Real Estate Value ( )filed ( )not required , 19— . County Auditor By Deputy (reserved for recording data) MORTGAGE REGISTRY TAX DUE HEREON: (reserved for mortgage registry tax payment data) Date: 19 — THIS CONTRACT FOR DEED is made on the above date by Fconomin Demplopme Development, Aut hor ity Center In and for the City of Brooklyn a m 1ni _ icipal orporatiQ= the laws of Seller, and - D avid Brand n1d , Purchaser (whether one or more). Seller and Purchaser agree to the following terms: 1. PROPERTY DESCRIPTION. Seller hereby sells, and Purchaser hereby buy's, real property in Hennepin County, Minnesota, described as follows: The North 1/2 of the North 1/2 of the West 1/2 of Lot 45, Garcelon's Addition to Minneapolis, according to the plat thereof on file and of record in the Office of the County Recorder in and for the County of Hennepin, State of Minnesota, together with all hereditaments and appurtenances belonging thereto (the Property). 2. TITLE. Seller warrants that title to the Property is, on the date of this contract, subject only to the following exceptions: (a) Covenants, conditions, restrictions, declarations and easements of record, if any; (b) Reservations of minerals or mineral rights by the State of Minnesota, if any; (c) Building, zoning and subdivision laws and regulations; (d) The lien of real estate taxes and installments of special assessments which are payable by Purchaser pursuant to paragraph 6 of this contract; and (e) The following liens or encumbrances: 3. DELIVERY OF DEED AND EVIDENCE OF TITLE. Upon Purchaser's prompt and full performance of this contract, Seller shall: (a) Execute, acknowledge and deliver to Purchaser a Quit Claim Deed, in recordable form, conveying marketable title to the Property to Purchaser, subject only to the following exceptions: (i) Those exceptions referred to in paragraph 2(a), (b), (c) and (d) of this contract; (ii) Liens, encumbrances, adverse claims or other matters which Purchaser has created, suffered or permitted to accrue after the date of this contract; and (iii) 'I'he following liens or encumbrances: and (b) Deliver to Purchaser the abstract of title to the Property or, if the title is registered, the owner's duplicate certificate of title. 4. PURCHASE PRICE. Purchaser shall pay to Seller, at Sel ler's of �s� at 6301 5hing P crPP Pkwy., Broo nte the sum of Nine�e F ltie._.lisindr.��- Lolla ($12-500) as and for the purchase price for the Property, payable as follows: (a) Dollars_ e arnest money, which has heretofore been received; and (b) Dollars to be paid on the earlier of (i) delivery to the Purchaser of a certificate of occupancy for a detached single — family residence constructed on the Property, and (ii) 1992; by cash, certified or cashier's check or wire transfer of guaranteed funds to Seller's bank account. 5. PREPAYMENT. Unless otherwise provided in this contract, Purchaser shall have the right to fully or partially prepay this contract at any time without penalty. Any partial prepayment shall be applied first to payment of amounts then due under this contract, including unpaid accrued interest, and the balance shall be applied to the principal installments to be paid in the inverse order of their maturity. Partial prepayment shall not postpone the due date of the installments to be paid pursuant to this contract or change the amount of such installments. 6. REAL ESTATE, TAXES AND ASSESSMENTS. Purchaser shall pay, before penalty accrues, all real estate taxes and installments of special assessments assessed against the Property which are due and payable in the year 1992 and in all subsequent years. Real estate taxes and installments of special assessments which are due and payable in the year in which this contract is dated shall be paid as follows: Seller warrants that the real estate taxes and installments of special assessments which were due and payable in the years preceding the year in which this contract is dated are paid in full. 7. PROPERTY INSURANCE. (a) INSURED RISKS AND AMOUNT. Purchaser shall keep all buildings, improvements and fixtures now or later located on or a part of the Property insured against loss by fire, extended coverage perils, vandalism, malicious mischief and, if applicable, steam boiler explosion for at least the amount of $- 1 -9 - -, -Soo— plus- xhe—amount_.uf_ any constzuction--finanr,-ing-- If any of the buildings, improvements or fixtures are located in a federally designated flood prone area, and if flood insurance is available for that area, Purchaser shall procure and maintain flood insurance in amounts reasonably satisfactory to Seller. (b) OTHER TERMS. The insurance policy shall contain a loss payable clause in favorofSeller which provides that Seller's right to recover under the insurance shall not be impaired by any acts or omissions of Purchaser or Seller, and that Seller shall otherwise be afforded all rights and privileges customarily provided a mortgagee under the so- called standard mortgage clause. (c) NOTICE OF DAMAGE. In the event of damage to the Property by fire or other casualty, Purchaser shall promptly give notice of such damage to Seller and the insurance company. 8. DAMAGE TO THE PItOPF:RTY. (a) APPLICA'T'ION OF INSURANCE PROCEEDS. If the Property is damaged by fire or other casualty, the insurance proceeds paid on account of such damage shall be applied to payment of the amounts payable by Purchaser under this contract, even ifsuch amounts are not then due to be paid, unless Purchaser makes a permitted election described in the next paragraph. Such amounts shall he first applied to unpaid accrued interest and next to the installments to be paid as provided in this contract in the inverse order of their maturity. Such payment shall not postpone the due date of the installments to be paid pursuant to this contract or change the amount of such installments.'file balance of insurance proceeds, if any, shall be the property of Purchaser. (b) PURCIIASER'S ELECTION TORE BUILD. If Purchaser is not in default under this contract, or after curing any such default, and if the mortgagees in any prior mortgages and sellers in any prior contracts for deed do not require otherwise. Purchaser may elect to have that portion of such insurance proceeds necessary to repair, replace or restore the damaged Property (the repair work) deposited in escrow with a bank or title insurance company qualified to do businessin the State of Minnesota, or such other party as may be mutually agreeable to Seller and Purchaser. The election may only be made by written notice to Seller within sixty days after the damage occurs. Also, the election will only be permitted if the plans and specifications and contracts forthe repair work are approved by Seller, which approval Seller shall not unreasonably withhold or delay. If such a permitted election is made by Purchaser, Seller and Purchaser shall jointly deposit, when paid, such insurance proceeds into such escrow. If such insurance proceeds are insufficient for the repair work, Purchaser shall, before the commencement of the repair work, deposit into such escrow sufficient additional money to insure the full payment for the repair work. Even if the insurance proceeds are unavailable or are insufffieient to pay the cost of the repair work, Purchaser shall at all times be responsible to pay the full cost of the repair work. All escrowed funds shall be disbursed by the escrowee in accordance with generally accepted sound construction disbursement procedures. The costs incurred or to be incurred on account of such escrow shall be deposited by Purchaser into such escrow before the commencement of the repair work. Purchaser shall complete the repair work as soon as reasonably possible and in a good and workmanlike manner, and in any event the repair work shall be completed by Purchaser within one year after the damage occurs. If, following the completion of and payment forthe repair work, there remain any undisbursed escrow funds, such funds shall be applied to payment of the amounts payable by Purchaser under this contract in accordance with paragraph 8 (a) above. 9. INJURY OR DAMAGE OCCURRING ON THE PROPERTY. (a) LIABILITY. Seller shall be free from liability and claims for damages by reason of injuries occurring on or after the date of this contract to any person or persons or property while on or about the Property. Purchaser shall defend and indemnify Seller from all liability, loss, costs and obligations, including reasonable attorneys' fees, on accountoforarising out of any such injuries. However, Purchaser shall have no liability or obligation to Seller for such injuries which are caused by the negligence or intentional wrongful acts or omissions of Seller. (b) LIABILI'T'Y INSURANCE. Purchaser shall, at Purchaser's own expense, procure and maintain liability insurance against claims for bodily injury, death and property damage occuring on or about the Property in amounts reasonably satisfactory to Seller and naming Seller as an additional insured. Required amounts of insurance are contained in Exhibit D. 10. INSURANCE, GENERALLY. The insurance which Purchaser is required to procure and maintain pursuant to paragraphs 7 and 9 of this contract shall be issued by an insurance company or companies licensed to do business in the State of Minnesota and acceptable to Seller. The insurance shall be maintained by Purchaser at all times while any amount remains unpaid under this contract. The insurance policies shall provide for not less than ten days written notice to Seller before cancellation, non - renewal, termination or change in coverage, and Purchaser shall deliver to Seller a duplicate original or certificate of such insurance policy or policies. 11. CONDEMNATION. If all or any part of the Property is taken in condemnation proceedings instituted under power of eminent domain or is conveyed in lieu thereof under threat of condemnation, the money paid pursuant to such condemnation or conveyance in lieu thereof shall be applied to payment of the amounts payable by Purchaser under this contract, even if such amounts are not then due to be paid. Such amounts shall be applied first to unpaid accrued interest and next to the installments to be paid as provided in this contract in the inverse orderof theirmaturity. Such paymentshall notpostpone the due date of the installments to be paid pursuant to this contract or change the amount of such installments. The balance, if any, shall be the property of Purchaser. 12. WASTE, REPAIR AND LIENS. Purchaser shall not remove or demolish any buildings, im- provements or fixtures now or later located on or a part of the Property, nor shall Purchaser commit or allow waste of the Property. Purchaser shall maintain the Property in good condition and repair. Purchaser shall not create or permit to accrue liens or adverse claims against the Property which constitute a lien or claim against Seller's interest in the Property. Purchaser shall pay to Seller all amounts, costs and expenses, including reasonable attorneys' fees, incurred by Seller to remove any such liens or adverse claims. 13. DEED AND MORTGAGE REGISTRY TAXES. Seller shall, upon Purchaser's full performance of this contract, pay the deed tax due upon the recording or filing of the deed to be delivered by Seller to Purchaser. The mortgage registry tax due upon the recording or filing of this contract shall be paid by the party who records or files this contract; however, this provision shall not impair the right of Seller to collect from Purchaser the amount of such tax actually paid by Seller as provided in the applicable law governing default and service of notice of termination of this contract. 14. NOTICE OF ASSIGNMENT. If either Seller or Purchaser assigns their interestin the Property, a copy of such assignment shall promptly be furnished to the non - assigning party. 15. PRO'T'ECTION OF INTERESTS. If Purchaser fails to pay any sum of money required underthe terms of this contract or fails to perform any of Purchaser's obligations as set forth in this contract, Seller may, at Seller's option, pay the same or cause the same to be performed, or both, and the amounts so paid by Seller and the cost of such performance shall be payable at once, with interest at the rate stated in paragraph 4 of this contract, as an additional amount due- Seller under this contract. If there now exists, or if Seller hereafter creates, suffers or permits to accrue, any mortgage, contract for deed, lien or encumbrance against the Property which is not herein expressly assumed by Purchaser, and provided Purchaser is not in default under this contract, Seller shall timely pay all amounts due thereon, and if Seller fails to do so, Purchaser may, at Purchaser's option, pay any such delinquent amounts and deduct the amounts paid from the installment(s) next coming due under this contract. 16. DEFAULT. The time of performance by Purchaser of the terms of this contract is an essential part of this contract. Should Purchaser fail to timely perform any of the terms of this contract, Seller may, at Seller's option, elect to declare this contract cancelled and terminated by notice to Purchaser in accordance with applicable law. All right, title and interest acquired under this contract by Purchaser shall then cease and terminate, and all improvements made upon the Property and all payments made by Purchaser pursuant to this contract shall belong to Seller as liquidated damages for breach of this contract. Neither the extension of the time for payment of any sum of money to be paid hereunder nor an waiver by Seller of Seller's rights to declare this contract forfeited by reason of anv breach shall in any manner affect Seller's right to cancel this contract because of defaults subsequently occurring, and no extension of time shall be valid unless agreed to in writing. After service of notice of default and failure to cure such default within the period allowed by law, Purchaser shall, upon demand, surrender possession of the Property to Seller, but Purchaser shall be entitled to possession of the Property until the expiration of such period. 17. BINDING EFFECT. The terns of this contract shall run with the land and bind the parties hereto and their successors in interest. 18. 11 EADINGS. Headings of the paragraphs of this contract are for convenience only and do not dettne, limit or construe the contents of such paragraphs. 19. ASSESSMENTS BY OWNERS' ASSOCIATION. If the Property is subject to a recorded declaration providing for assessments to be levied against the Property by any owners' association, which assessments may become a lien against the Property if not paid, then: (a) Purchaser shall promptly pay, when due, all assessments imposed by the owners' association or other governing body as required by the provisions of the declaration or other related documents; and (b) Sol Oil g as the owners' association maintains a master or blanket policy of insurance against fire, extended coverage perils and such other hazards and in such amounts as are required by this contract, then: (i) Purchaser's obligation in this contract to maintain hazard insurance coverage on the Property is satisfied; and (ii) The provisions in paragraph 8 of this contract regarding application of insurance proceeds shall be superseded by the provisions of the declaration or other related documents; and (iii) In the event ofa distribution ofinsurance proceeds in lieu ofrestoration or repair following an insured casualty loss to the Property, any such proceeds payable to Purchaser are hereby assigned and shall be paid to Seller for application to the sum secured by this contract, with the excess, if any, paid to Purchaser. 20. ADDITIONAL TERMS: SELLER PURCHASER(S) Fronomi_c Devel n(Lment An thnrit i_n 3nr1 ._fo David Brandvold the City of Brooklyn Center By Its President By Its F rt e Di rer tnr State of Minnesota Jr. County Of Hennepi The foregoing instrument was acknowledged before me this —day of . 19 —• b a nd the President and _Exer_i!>`iye —Di c o o Fronomir T11P1nnmP t A tho i_._:_y dx, —a for x a mun ici� Lpora ion under the laws of th of Minnesota on behalfofthe_Er_= Development Aut hority in and for the City of Brooklyn Center * the i entpr N iaAR(AI..SI'A NI V OR SF: AI. r)riiF:R - rrn.E OR RANK SI(INA FVRE OF No 'I Ain I'Vit I.Ir OR 011IF. To OFF'R'I AI. State of Minnesota fJ. County of The foregoing instrument was acknowledged before me this day of 1 19— b David Brand an individual whose Principal place of residence is S.Il UTAI. SI'AA11' I IR SF.AI. a R I lFHF:R 'fill it OR RANK, SIGNA FURF:OF No'IA10, 1 0 o IIFR 01 Fit IAI, Tax statements tot the real properly described in this instrument should be sent to 1111,1 INS'I'Itl'.'.1EN'1 WAS I 11) NA,NIF ANIt ADIIRF;SS Homes & Graven, Chartered 470 Pillsbury Center Minneapolis, Minnesota 55402 FAILURE TO RECORD OR FILE THIS CONTRACT FOR DEED MAY GIVE OTHER PARTIES _-_- .... ... ....... _. -,.,,. ...•.. r.., rram rNi TSiC mDrlrl l`TJTV EXHIBIT B LEGAL DESCRIPTION The North 1/2 of the North 1/2 of the West 1/2 of Lot 45, Garcelon's Addition to Minneapolis, according to the plat thereof on file and of record in the Office of the County Recorder in and for the County of Hennepin, State of Minnesota. BLP19353 ER291 -9 EXHIBIT C AMForm No. ISMW MW-00% wed .�rp_. MINNESOTA WELL DISCLOSURE STATEMENT Minnesota Law requires that before signing an agreement to sell or transfer real property after June 30, 1890, the seller must disclose information in writing to the buyer about the status and location of all known wells on the property. This requirement is satisfied by delivering to the buyer either a statement by the seller that the seller does not know of any wells on the property, or a disclosure statement indicating the legal description and county and a map showing the location of each well. In the disclosure statement the seller must indicate, for each well, whether the well is in use, not in use or sealed. A seller who fails to disclose the existence of a well at the time of sale and knew of, or had reason to know of, the existence of a well is liable to the buyer for costs relating to the sealing of the well and reasonable attorney fees for collection of costs from the seller, if the action is commenced within six years after the date the buyer closed the purchase of the real property where the well is located. Instructions for completion of this form are on the reverse side. 1. PROPERTY DESCRIPTION Street address: Ckr C..., 2. LEGAL DESCRIPTION 3. WELL DISCLOSURE STATEMENT (Check the appropriate box.) ❑ The seller certifies that the seller does not know of any wells on the above descsz'bed real property. If this option is checked, then skip to the last line and sign and date this statement. ❑ The seller certifies that the following wells are located on the above described real property. MN. Unique Well Year of Well IN USE NOT IN SEALED Well No. Depth Const, Type USE W611 ❑ O ❑ Well2 ❑ ❑ ❑ Well3 ❑ ❑ ❑ 4. SEALED WELL INFORMATION For each well designated as sealed above, complete this section. When was the well sealed? Who sealed the well? Was a Sealed Well Report filed with the Minnesota Department of Health? Yes No 6. MAP Complete the attached map showing the location of each well on the real property. 6. CERTIFICATION BY SELLER I certify that the information provided above is accurate and complete to the best of my knowledge. B.Or W Dssutad 14p-Un D.0 546 s D- —d X p—VU- D.4 INSTRUCTIONS FOR COMPLETING THE WELL DISCLOSURE STATEMENT DEFINITION A "well" means an excavation that is drilled, cored, bored, washed, driven, dug, jetted, or otherwise constructed if the excavation is intended for the location, diversion, artificial recharge, or acquisition of groundwater. MINNESOTA UNIQUE WELL NUMBER All new wells constructed AFTER January 1, 1975 should have been assigned a Minnesota unique well number by the person constructing the well. If the well was constructed after this date you should have the unique well number in your property records. If you are unable to locate your unique well number and the well was constructed AFTER January 1, 1975, contact your well contractor. If no unique well number is available, please indicate the depth and year of construction for each well. WELL TYPE Use one of the following terms to describe the well type. WATER WELL A water well is any type of well used to extract groundwater for private or public use. Examples of water wells are: domestic wells, drive -point wells, dug wells, remedial wells, and municipal wells. IRRIGATION WELL An irrigation well is a well used to irrigate agricultural lands. These are typically large diameter wells connected to a large pressure distribution system. MONITORING WELL A monitoring well is a well used to monitor groundwater contamination. The well is typically used to access groundwater for the extraction of samples. DEWATERING WELL A dewatering well is a well used to lower groundwater levels to allow for construction or use of underground spaces. INDUSTRIAIJCOMMERCIAL WELL An industrial/commercial well is a nonpotable well used to extract groundwater for any nonpotable use including groundwater thermal thermal exchange wells (heat pumps and heat loops). WELL USE STATUS Indicate the use status of each well. CHECK ONLY 1 BOX PER WELL. IN USE A well is "in use" if the well is producing sufficient water to meet its intended use and is being operated on a regular basis. NOT IN USE A well is "not in use" if the well is inoperable and not in use or the well is disconnected from a power supply and is not sealed. SEALED A well is "sealed "if the well has been sealed by a licensed contractor and there is a Sealed Well Report on file at the Minnesota Department of Health. A properly sealed well has been sealed by a licensed contractor by pumping grout throughout the entire borehole from the bottom of the well. NOTE: If a well is inoperable and not in use or disconnected from a power source, it must be sealed by a licensed well contractor or a well owner must obtain a maintenance permit from the Minnesota Department of Health and pay an annual maintenance fee. If a well is operable and properly maintained, a maintenance permit is not required. MAP Please use the space below to sketch the real property being sold and the location of EACH well on the property. Include distances from fixed reference points such as streets and buildings. USE ADDITIONAL SPACE ON BACK IF NEEDED EXHIBIT D The following types and amounts of insurance shall be maintained by the Purchaser pursuant to Paragraph 9 of the Contract for Deed. Covera e Limits Workers Compensation Statutory Employer's Liability $100,000 Comprehensive General Liability $300,000 BI & PD Independent Contractors Contingent Liability Included Products/ Completed Operations Liability Included Contractual Liability Included Personal Injury Liability Included "XCU" Liability (If applicable) Included Broad Form Property Damage Included Comprehensive Automobile Liability for owned, hired, and non -owned automobiles $300,000 BI & PD CITY OF BROOKLYN CENTER Council Meeting Date 12/1 6/91 Agenda Item Number_ S - L/ REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION ESTABLISHING ENDOWMENT ACCOUNT AND AUTHORIZING CERTAIN HOUSING ACTIVITIES AND PROGRAMS TO BE UNDERTAKEN BY THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER, MINNESOTA DEPT. APPROVAL: _ Assistant EDA Coordinator Sign"atu"re - title MANAGER'S REVIEW /RECOMMENDATION: No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached Yes ) This Resolution provides for the creation of an endowment account whereby $1,000,000 will be transferred from a City Special Assessment Debt Service account to the EDA, and the interest earnings from the $1,000,000 will be used for housing activities and programs specified in the Resolution. The Council Resolution referenced in the EDA Resolution is titled Resolution Closing the 1986 Special Assessment Debt Service Fund and Transferring the Remaining Funds to the EDA Fund, the Capital Improvements Fund and the Park Bonds of 1980 Debt Service Fund. The housing activities specified in the EDA Resolution are those which are authorized under Minnesota Statutes Chapter 469, which is the State Statute regulating housing and redevelopment authorities. Additionally, the activities and programs described by the Resolution are divided into two categories as follows: Paragraph number one in the Resolution describes activities carried out in the EDA's Scattered Site acquisition program. Since this is an established ongoing housing program, the EDA would not need to seek review and approval from the City Council to continue operation of this program. Paragraph number two in the Resolution describes housing activities and programs authorized by Chapter 469 but which are not programs currently undertaken by the EDA, and would require prior review and approval by the City Council. RECOMMENDATION: Staff Recommends Approval of the EDA Resolution. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION ESTABLISHING ENDOWMENT ACCOUNT AND AUTHORIZING li CERTAIN HOUSING ACTIVITIES AND PROGRAMS TO BE UNDERTAKEN BY THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER, MINNESOTA WHEREAS, the Economic Development Authority in and for the City of Brooklyn Center desires to undertake housing programs and activities in order to preserve existing housing and neighborhoods, to eliminate blighting influences and to redevelop substandard property in the City; and WHEREAS, the Brooklyn Center City Council has, by Resolution transferred $1,000,000 in funds to the Economic Development Authority to be deposited in an endowment account and the interest earnings from this account are to be used for the implementation of programs and activities in the City of Brooklyn Center conducted pursuant to Minnesota Statutes Section 469.012 Subdivision 1, Clause (7) or such other projects as may hereafter be approved by the City Council; and WHEREAS, it is the intent of the Brooklyn Center Economic Development Authority to specify the types of housing programs and activities for which the above described funds are to be used. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority, in and for the City of Brooklyn Center that the funds received from the above described transfer of funds be deposited in an endowment account and that only the interest earnings be used by the EDA for the housing activities and programs described in this Resolution. BE IT FURTHER RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that the expenditure of the funds transferred to the EDA fund by Council Resolution are hereby authorized for the following housing programs and activities: 1. Activities authorized by Minnesota Statutes Section 469.012, Subdivision 1, Clause 7, including but not limited to the following: a. Acquire real property, demolish, rehabilitate or reconstruct buildings or improvements where said buildings or improvements thereon are substandard. is b. Construct new buildings, and improvements on the real property acquired or otherwise prepare the site for improvements. EDA RESOLUTION TIO. C. Sale of acquired properties, through advertised sale for development or redevelopment of the property or contract for development or redevelopment for such uses as may be deemed to be in the best interest of the City of Brooklyn Center. d. Expenditures authorized under Section 469.012, Subdivision 1, Clause 7, may be undertaken by the Brooklyn Center Economic Development Authority without prior approval by the Brooklyn Center City Council. 2. Activities and programs undertaken pursuant to Minnesota Statutes, Chapter 469 including but not limited to such activities and programs as the following: a. Develop and administer rehabilitation loan /grant programs for housing redevelopment or rehabilitation. b. Develop and administer interest reduction or down payment assistance programs for persons of low and moderate income desiring to purchase housing in the City of Brooklyn Center. C. Except for activities and programs authorized by Section 469.012, Subdivision 1, Clause 7, expenditures for all activities and programs undertaken by the Brooklyn Center Economic Development Authority pursuant to Chapter 469 shall require prior approval by the Brooklyn Center City Council. Date Todd Paulson, President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken the . thereon, the following voted in favor thereof. and the following voted against the same: whereupon said resolution was declared duly passed and adopted. CITY OF BROOKLYN CENTER Council Meeting Date 12/16/91 Agenda Item Number REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANT (FILE NO. H96) DEPT. APPROVAL;: z c 1 � '1 — _ 7 '_ Assistant EDA Coordinator Signature - title * it * *it *it *a * * *ict * * *�c�titcc�� rat** �c* ritit *aat *ar * * *ararart * " *���• ate✓, �F r�c+ tf/ atpcx dFiF�iF� - it'��F *+t * tat *at * ** MANAGER'S REVIEW / RECOMMENDATION: V No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached Yes ) • 1 have received one (1) application for a rehabilitation grant (File No. H96). Attached is the application and recommendations for work to be performed on the home. I recommend approval by the EDA. The information is private and not available to the general public. RECOMMENDATION Motion to adopt Resolution Approving One (1) Brooklyn Center Economic Development Authority Grant (File No. H96). Commissioner introduced the 0 following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANT (FILE NO. H96) WHEREAS, the Brooklyn Center Economic Development Authority established a Home Rehabilitation Grant Program to assist low and moderate income individuals in the maintenance and repair of their homes; and WHEREAS, the Brooklyn Center Economic Development Authority has received one (1) application (file no. H96) from eligible individuals to receive grant assistance; and WHEREAS, an inspection by the City of Brooklyn Center has determined that the work is necessary and appropriate under the Brooklyn Center Economic Development Authority Grant Program; and WHEREAS, the estimated cost of the proposed grant application is estimated at $10,000. NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center Economic Development Authority that: 1. The Brooklyn Center Economic Development Authority does approve the one (1) housing rehabilitation grant application (file no. H96) as recommended by the staff. 2. That the work be performed as recommended in the request for council consideration form dated 12/16/91., and that the applicants be directed to obtain the necessary bids for staff review and { approval. 3. The project shall not exceed the grant limit of $10,000 per house. Date Todd Paulson President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and adopted. c. URBAN HENNEPIN COUNTY +" HOUSING REHABILITATION DEFERRED LOAN PROGRAM HOMEOWNER APPLICATION FOR GRANT !'•' ' HOUSEHOLD INFORMATION -- Please Print First Name Name E -5N,»AI of Spouse IAII)H Address � r �`7 AVc' IU • Home Phone - -- �Ice U City ��Qoni1 , ,► .,�Z Zip Code 55 `3 Work Phone City of residence if other than mailing address Marital Status (check one) L 1--1` m ' arried, single, divorced, separated, widowed Race (check one) _L Black, American Indian /Native Alaskan, Hispanic, Asian or Pacific Islander The information concerning Minority Group Categories is requested for statistical purposed only so that Hennepin County may determine the degree to which its programs are utilized by Minority households. INCOME INFORMATION "Income" means any income received from any source by a Resident. List all the people in occupying your house for at least nine months of the year (including yourself). Include ages and incomes. Include any income derived from rent. Total number of residents in the household How many renters ?Q_ OFFICE USE ONLY i income of # in household names of ages of residents residents residents Der month source of income verified incomes $ s Total Income per month — per year 989 lli3(oV _ �"C A G_YUrh income per month RETURN APPLICATION TO: $ _-p 1 5 1 8 .7 Z Mr. Dale Ruedy (291 -6596) income per year Metro HRA Mears Park Centre 230 East 5th Street St. Paul, MN 55101 a 'f ASSET INFORMATION ` List the cash value of assets held by all residents of your household. If money is owed on any item, the value listed should equal the market value of the item minus the amount that is owed. OFFICE USE ONLY verified assets 1. CASH on hand ........ ............................... $ �►`oo $ 20-0 2. CASH in checking accounts ...........................$ n (7 C1 $ 3 y Z �•3 y 3. CASH in saving accounts (including those held ....... $ © $ in trust) 4. Cash value of Securities or U.S. Savings bonds ...... $ 'y $ 5. Redemption value of life insurance policies ......... $ $ 6. Current Market Value of real estate, NOT INCLUDING the property to be improved and up to 2 surrounding acres. Include 100% of the outstanding balance owed to you on property sold on Contract for Deed ...$ 7. Other personal property (excluding household furnishings, clothing and one personal vehicle) ..... $ ('7 $ TOTAL ASSETS .............. ..............................$ ' ��' —.G�t) $ 3 VS PROPERTY INFORMATION Provide the following information about the property to be improved with this deferred loan. / I. Is your property: V a single family house; a duplex 2. How many years have you lived in the house? 41 3. What is the approximate age of the house? Lft-�ACA 4. Do you have any outstanding mortgage(s) on the house? ✓ Yes No If yes, with whom? (use additional sheet 73, V9 0 - ( // o� if necessary) Amount $ 5. Do you have any outstanding Contract(s) for Deed on the house? Yes t-- No If yes, with whom? (use additional sheet if necessary) Amount $ 6. Have you received a Housing Rehabilitation Grant or Loan before? Yes No If yes, from whom? Amount $ Amount $ 2 A MORAINDUM TO: Tom Bublitz, Assistant EDA Coordinator FROM: David Fisher, Building Inspector DATE: November 27, 1991 SUBJECT: Rehabilitation Grant for 801 - 57th Avenue North Homeowner: Gerald Mellesnioen Subject property is a three bedroom rambler approximately 30 years old. The major deficiencies noted: old roof, old furnace, old water heater and poor insulation. The following list of rehabilitation items would improve this home greatly: Electrical 1. Install receptacle in basement bathroom with ground fault. Mechanical 1. Provide heat loss calculations, manufacturer's instructions and /or test for new furnace. 2. Provide new furnace. 3. Replace gas valve with approved valve. 4. Provide combustion air. 5. Provide set -back thermostat. Plumbing 1. Install new 40 gallon energy miser water heater AGA or UL listed. 2. Install new bathtub waste trap. 3. Install floor drain in basement. 4. Reset existing water closet in basement bathroom with new gasket. 5. Repair kinked water line to water closet in basement. 6. Provide back flow preventers on all outside spigots. 7. Provide back floor preventer on existing well spigot inside well room under step. Miscellaneous 1. Repair wall in basement bathroom. 2. Replace missing tile in upper level bathroom. 3. Secure tile in upper level bathroom. 4. Caulk around bathtub in upper level bathroom. 5. Replace rear exterior door. 6. Replace garage service door. 7. Repair screen on rear storm door. 8. Replace window in kitchen. 9. Provide insulation in attic to R -38. 10. Provide insulation minimum R -11 in walls. Tom Bublitz November 27, 1991 Page Two 11. Provide insulation minimum R -11 around foundation. 12. Provide insulation minimum R -19 in rim with vapor barrier. 13. Provide attic ventilation per Uniform Building Code. 14. Repair existing brick work in front on north side of house 15. Repair block and wall by overhead door entry to garage. (northwest corner) 16. Provide aluminum cover to soffits and fascia to spec. 17. Provide gutter and downspouts. 18. Tear off existing roof and provide new roof to code. 19. Replace sidewalk. 20. Replace crumbled garage entrance apron. TABLE OF CONTENTS �RT PAGE 1 ❑ HANDRAIL - GUARDRAIL $ 1 Where required, Height of, Baluster Spacing and Installation, Specification for 2 ❑ INTERIOR - EXTERIOR STAIRS $ 1 Repair or Replacement of, Rise and Run and Installation, Specification for 3 XxE] FOUNDATION $ 2 Repair of —Tuck Pointing Insulation Installation and Specification for 14 4 ❑ CRAWL SPACE: $ 2 Insulation of and Vapor Barrier, Installation for 5 ❑ BASEMENT FLOOR $ 2 Repair of 6 ❑ POST AND BEAM: $ 3 Repair of, Replace 7 ❑ ACCESSIBILITY IMPROVEMENT $ 3 For Barrier Free and Handicapped Persons 1 08 v o ELECTRICAL $ 3 Upgrade Service, Unprotected Conductor,Washer, Dryer, Hanging Receptacle, Furnace and Kitchen Circuits Wall Receptacle, Ground Fault 4 9 ❑ ELECTRICAL MAST: $ 4 Relocation of 10 X)Q MECHANICAL $ 4 Enclosed Space Ventilation, Replace Furnace Thermostat, Chimney, Registers, Ductwork 11 XE PLUMBING: $ 5 Water Heater Replacement, Cold Water Shut -off, Gas Valve T.P.R. Valve, Vent Connector, Dryer Gas Valve, Dryer 6 Ventilation, Open Gas Device,Well Abandonment, Plugged Sewer, Water Softener, Kitchen Sink Vent, Trap, Water Supply, Lavatory Vent, Trap, Water Supply, Water Closet and Sealing Gasket, Bathtub Vent, Trap, Wall Enclosure, Laundry Tub Vent, Trap, Floor Drain Plumbing Fixture Material and Performance Specifications 7 for, Drain Tile, Main Water Line Septic System, City Sewer 8 -1- TABLE OF CONTENTS PART PAC *!2 ❑ CEIL I °IGS $ 3 Repair of 13 mo WALLS: $ 8 Repair of 13 Ceiling and l;!all Performance and Material Specifications for 9 - 14 ❑ FINISH FLOORS: $ 10 -i Rep acement of, Performance and Material Specifications for 15 X)E1 EXTERIOR DOORS: $ 1 Repair - Refi nish of, Weather Sealing, and Replacement of, Performance Specification for 16 X>❑ EXTERIOR STORM DOORS: $ 1 Repair - Rep acement of, Material Specification for 17 ❑ INTERIOR DOORS $ 1 Repair - Replacement of, Performance and Material Specifications for 18 ❑ EXTERIOR STORM AND SCREEN WINDOWS $ 1 Repair - Replacement of, Material Specification for 0 9 x g HOUSE WINDOWS 13-1 - Repair - Refinish of, Weather Sealing of, Replacement of, Material and Performance Specification for 20 XX❑ INSULATION: $ 14 -1 Attic, Wall, Foundation, Rim Joist Installation, Material and Performance Specification for, Code Requirement 21 X)❑ VENTILATION: $ l: Provision of Attic, Kitchen, Bathroom, Repair of, Material and Performance Specification for 22 xQ EXTERIOR SIDING: $ it Installation, Repair or Replacement of, Soffit and Facia, Window, Door and Cornice Trim, Material and Performance Specification for 23 ❑ EXTERIOR PAINTING: $ 1- Material and Performance Specification for 24 X)E1 GUTTERS AND DOWNSPOUTS: $ 1 Provision for an Replacement of, Material and Performance Specification for 46 5 Xg ROOFING: $ lz R ep - Replacement - Removal of, Material and Performance Specification for -2- TABLE OF CONTENTS P ART �, PAGE 26 ( CHIMNEY Repair - P.eline - Replacement of S 5 -19 27 T c� KITCHEN BAT CABI'ETS 19 ; 28 ❑ SMOKE DETECTORS Installation of 20 29 GRADING Material and Placement Specification for, Seeding and 20 Sodding of 30 XXE] EXTERIOR CONCRETE WORK Replacement - Repair of, Sidewalks, Garage Apron, Etc. $ 20 31 Q MISCELLANEOUS: $ 20 TOTAL 0 Contractor Name: Address: City State Phone: Home Work Homeowner Name: Address: Phone: H# Contractor Signature Date -3- • URBAN HENNEPIN COUNTY HOUSING REHABILITATION GRANT PROGRAM PROPERTY INSPECTION REQUEST TO COUNCIL: 12/16/91 H96 APPLICANT INSPECTION Name Gerald Mellesmoen Staff Tom Bublitz Address 801 - 57th Avenue North Date 11/26/91 Brooklyn Center, MN 55430 Time 8 - 10 a.m. • Phone 560 -3518 Inspector David Fisher Building Age: 30 Garage: Attached • 1. INSTALL HANDRAIL: ❑ Basement Stair ❑ Front Stair ❑ Rear Stair ❑ Upper Level Stair One handrail shall be installed on stairways 44" or less in width, except that stairways open on one or both sides shall have handrails provided on the open side or sides. Handrails shall not be less than 30 " nor more than 34" in height above stair tread. Unenclosed floor, open landings and ramps at a height of over 30 " from floor or grade shall have a guardrail. Guardrail shall not be less than 36" in height and shall have intermediate rails or an ornamental pattern such that a sphere 6 in diameter cannot pass through. Materials and finish shall be specified in the Scope of Improvements and installation shall be in compliance with the State Building Codes. ❑ Addition: • 2. INTERIOR _ EXTERIOR STAIRS ❑ Repair ❑ Basement [] Second Storey [] Front ❑ Rear Entrance Stairs ❑ Replace ❑ Basement ❑ Second Storey ❑ Front Rear Entrance Stairs Stair riser to be a minimum of 4 " to a maximum of 7 " high. Stair tread to be a minimum of 11" wide. Wood stair stringer shall be of 2 x 10 nominal stock. Exterior stairs can be of treated stock or concrete having footings 42 11 minimum below grade. ❑ Addition: -1- 3. R EPAIR FOUNDATION: All joints shall be completely filled with mortar. 71 Tuck pointing shall be done only after the joints have been raked out to a minimum depth of 112" and wetted. ? Addition: See NOTE: (on 22) 4. CRAWL SPACE: F� Either insulate perimeter foundation wall to R -11 or floor to a minimum of R -19. A 6 mil. polyethylene plastic vapor barrier shall be installed over dirt area and be weighted by sand, rocks or other non -wood materials. • [] Addition: 5. BASEMENT FLOOR: [-1 Patch holes and large cracks. Addition: -2- 6. POST AND BEAM i ❑ Repair or replace as marked. ❑ Addition: 7. ACCESSIBILITY IMPROVEMENTS ❑ Refer to Minnesota State Building Code Chapter 55 for accessibility architecture specifications. The type and scope of accessibility improvements shall be at the discretion of the Grant Administrator. ❑ Addition: • 8. ELECTRICAL: ❑ Install new U.L. certified 100 amp service panel and circuit breakers. ❑ Relocate unprotected plastic coated conductors to center of wood joist or in metal protective tubing located in ❑ Provide grounded receptacle for: [] Washer & Dryer on a separate 20 amp circuit. ❑ Water Softner. ❑ Other Replace hanging light or receptacle with porcelain fixture mounted on an approved box and properly grounded. ❑ Provide separate 15 amp circuit to furnace. ❑ Provide separate 20 amp circuit to kitchen countertop work area receptacles. -3- ELECTRICAL CONTINUED ❑ Add wall receptacle in: kitchen; ❑ in dining room; bedroom ❑ bedroom • ❑ bedroom ❑ bedroom ❑ living room ❑ bathroom ❑ with ❑ without ground fault. ❑ laundry room [jjAddition: Tnstall wall receptacle in basement bathroom with ground faul 9. ELECTRICAL MAST; ❑ Relocate ❑ Other • ❑ Addition: ALL ELECTRICAL WORK SHALL BE IN COMPLIANCE TO THE NATIONAL ELECTRICAL CODE. 10. MECHANICAL: ❑ Provide ventilation of enclosed furnace space. ❑X Provide heat loss calculation of dwelling and install new heating manufacturer's instructions capable to meet the heat loss. The minimum AFUE shall be listed at 80% and shall include damper efficiency. New appliance shall be AGA or UL listed and orsat tested. -4- ❑ Replace gas valve with approved lever handle gas valve or ball valve ❑ Replace vent connector from furnace to chimney with 26 gauge gaiv. sheet metal vent materials. Provide combustion air ® Provide set back thermostat. ❑ Reline existing Class B Chimney to expel water heater or other gas appliance combustion gases if new heating appliance is vented through the side wall. ❑ Remove ❑ Reline existing Class B Asbestos Chimney. ❑ Add warm air re in ❑ Add return air register in ❑ Add Duct work ❑ Addition: ALL MECHANICAL WORK SHALL BE IN COMPLIANCE WITH STATE MECHANICAL CODES. 11. PLUMBING R Install new 40 gallon energy miser water heater having AGA or UL listing complete with necessary gas piping tested for leaks, new lever handle gas valve or ball valve, new vent connector sealed and secured at all joints, new temperature pressure relief valve with 3/4 overflow tube extending to 6 above finished floor. Water heater shall be warranted for five years. • ❑ Install cold water shut off valve on existing water heater. ❑ Install approved gas valve on existing water heater. PLUMBING continued ❑ Install temp., pressure, relief valve on existing water heater. • V install new vent connector on existing water heater. Install new approved gas valve on gas dryer. ❑ Vent gas dryer to outside air. ❑ Plug or cap open gas valve or fitting located at or near ❑ Disconnect existing well water and reconnect water service to City water with meter and reconnect electrical ground to City side of water meter. Well to be properly abandoned, inspected and approved by the State Health Department or City Sanitarian. ❑ Rout out main house sewer and clear stoppage. ❑ Repair or replace inoperable water softener. (❑ Install new kitchen sink vented to outside air. ❑ Install new kitchen sink water supply tubes and valves. ❑ Install new kitchen sink trap. ❑ Install new lavatory sink vented to outside air. ❑ Install new bathroom lavatory water supply tubes and valves. ❑ Install new bathroom lavatory trap. ❑ Install new bathroom water closet complete with seat and shut off valve. fX Install new water closet setting seal gasket-(In basement bathroom) ❑ Install new bathtub vented to outside air. Ei Install new bathtub waste trap. ❑ Install new bathtub wall enclosure and shower curtain rod. ❑ Install new laundry tub vented to outside air. ❑ Install new laundry tub waste trap. ❑R Floor Drain ❑ Inoperable [j Install I ❑X Other 1. Reset existing toilet in basement with new gasket. Also replace kinked line to toilet. 2. Install floor drain. 3. Provide back flow preventers on all outside spigots. 4. Provide back flow preventer on existing well spigot inside well room under steps. -6- PLUMBING continued New kitchen sink shall be 33" x 22" self - rimming, unless otherwise specified in the Scope of Improvements. Sink shall be stainless steel or cast iron and faucets shall be either single lever or two handle. a. Garbage disposal is only an acceptable work item in these two circumstances. ❑ 1. reinstallation of existing disposal when installing a new sink. ❑ 2. removing and disposal. Q New bathtub shall be cast iron, fiberglas or steel. Faucets shall either be single lever or two handle. Color selection shall be limited white unless specified to match existing color. Installation of a fiberglas tub insert is at the discretion of the Grant Administrator. Q New lavatory shall be wall -hung or with vanity. Trap shall be .17 gauge. Color selection shall be limited to white unless specified to match existing color. Refer to Carpentry section for dabinet specification. Q New water closet shall be viterous china with close coupled tank, include seat and anti - siphon ballcock. Color selection shall be limited to white unless specified to match existing color. Q New laundry tub shall be fiberglas and securely attached to wall or free standing. Faucet shall be stainless steel or brass type and nonthreaded or with a vacuum • breaker. Provide basement interior perimeter wall drain tile system and floor sump pump. Sump pump shall discharge to an exterior french drain or City storm sewer. French drain shall be located a minimum of ft. from foundation wall and be filled with a minimum of cubic feet of 3/4 stone. Stone shall be topped with sod or reseeded to match existing landscape. Addition: Q Provide Municipal Water - House connection to municipal water line shall entail a bid specifying municipal tap -in fee, total length and cost per foot, location and permit. Connect to house supply lines, patch any unnecessary holes incurred where water line enters house, repair any necessary street damage, back fill and mound to allow settlement to previous ground level. Seeding or sodding the ground to match existing or blend in with the adjoining and surrounding work shall be at the discretion of the Grant Administrator. Q Addition: -7- PLUMBING continued ❑ Provide Septic Sewage System - System shall be specified in the bid and include drawin installation wall include testing and permit costs. Connect to house drainage lines, provide reasonable protection to lawn, driveways, etc., back fill and mound to allow settlement to previous ground level. Seeding or sodding the ground to match existing or blend in with the adjoining and surrounding work shall be at the discretion of the Grant Administrator. ❑ Addition: ❑ Provide Municipal Sewer - House connection to municipal sewer line shall entail a bid specifying municipal tap -in fee, total length of line and cost per foot, location and permit. Connect to house drainage lines, patch any unnecessary holes incurred where line enters house, repair any necessary street damage, fill existing septic tank(s) with dirt and back fill and mound to allow settlement to previous ground level. Seeding or sodding the ground to match existing or blend in with the adjoining and surrounding work. Q Addition: ALL PLUMBING WORK SHALL BE IN CCM.PLIANCE WITH THE STATE PLUMBING CODE 12. CEILINGS (See General Specification) ❑ Repair Ceiling in Q Kitchen ❑ Dining room • ❑ Livingroom ❑ Bathroom C Bedroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Basement ❑ Basement ❑ Closet b 13. WALLS (See General Specification) Repair Wall in ❑ Kitchen ❑ Dining room Q Livingroom (!3 Bathroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Basement ❑ Closet of -8- WALLS continued © Wall and Ceiling Repair Ceneral Specification: 1. Wherever existing walls or ceilings are to be repaired, the damaged and loose material shall be completely removed and new material shall be sized and installed to match and blend in with the adjoining and surrounding work. All repairs shall be properly prepared to receive the finish application. 2. Plastering - New plastering work shall be installed in compliance with the State Building Codes. 3. Wall Board - shall be installed in compliance with the State Building codes. 4. Perforated Tape Mix - shall comply with the recommendations of the manufacturer. A minimum temperature of 55 degrees Fahrenheit shall be maintained in the room where work is done until the cement is completely dry. 5• Perforated Tape Application - Follow manufacturer's directions. a. Over Joints the tape shall be embedded in cement and covered with a thin layer of cement. A second and third coat shall be applied. Each coat shall be dry before applying the next coat. Each coat shall be featheredged and extended beyond the previous coat (approximately 2 The finish coat shall ® be sanded lightly and any imperfections filled in prior to any painting and decorating. b. Check to see that all nails have been driven so that their heads are below the surface of the board leaving a dimple in the surface without breaking the paper. Cover the nails dimple with three applications of cement allowing time to dry between each coat. The final coat shall be sanded lightly before application of paint or other decoration. c. Inside corners shall be reinforced with tape embedded in cement finished as specified "Over Joints ". d. Outside corners shall be protected by wood moulding, metal moulding or metal corner reinforcement. Metal corner reinforcement shall be finished with two coats of cement as specified. 6. Waterproof gypsum board shall be used in areas specified in the State Building Code. Install water resistant wall board base in the bath and shower enclosure, and apply wall board with long edge horizontally over the tub, allowing 1 /4 space between the board and tub. 7. Adhesive is an acceptable bonding material. Adhesive shall be specified according to usage and location and applied in strict compliance with the manufacturer's specifications. -9- JALLS continued 3. Paneling installation shall be 3/16" prefinished paneling of a medium quality installed as per manufacturer's recommendations. Owner shall have choice of paneling color and style. 9. Furring strips - New ceiling shall be installed over 1" x 3" furring strips, 12 on center. When ceiling butts to wood or paneled walls, 3/4" to 1 112" cove moulding shall be installed along edge. New walls shall be installed over 1" x 2 furring strips, 16 on center. Any existing baseboard, window or door trim shall be removed and reinstalled or replaced with new trim over new wall material, unless otherwise specified in the Scope of Improvements. New work shall be level and plumb with adjoining and surrounding work. Addition: I. Replace rock in basement bathroom to remove mold. 2. Secure tile in bathroom behind toilet (upper level). 3. Replace missing tile in upper level bathroom. 4. Recaulk around bath tub. Upper bath. 14. FINISH FLOORING Replace Floor Covering in Kitchen Diningroom Livingroom Bathroom Bedroom Bedroom Bedroom Bedroom Basement Closet of 1. Existing wood flooring shall be repaired to match existing or blend in with the adjoining and surrounding work. 2. Resilient flooring shall be sheet vinyl or vinyl asbestos the minimum thickness 1/16". Tile shall be medium quality and laid in exact accordance with the manufacturer's specifications. Owner to select color and pattern from readily available selection. 3. Carpet shall be a color and pattern from readily available selection of medium quality and priced carpet. 4. A finished wood, vinyl or metal moulding along edge of flooring shall be installed as part of the finish flooring installation. -10- FLOORING continued 5. Plywood used as subfloor shall be a minimum of 112" thick, nailed to joist spaced 16 on center along intermediate members, installed with outer plies at right angles to the joists and staggered so the end joists in adjacent panels bear on different joists. 6. Underlayment shall be 1/4 structural grade plywood, particle board or untempered hard board placed with smooth side up. ❑ Addition: 15. EXTERIOR DOORS E - Repair and Refinish: ❑ Front Door ❑ Rear Door ❑ Side Door ❑ Garage Door Weather Seal: ❑ Front Door ❑ Rear Door ❑ Front Storm Door • ❑ Rear Storm Door E Replace: ❑ Front Door )❑ Rear Door )❑X Garage Door All exterior doors shall be solid core wood or insulated steel and complete with hardware, strike plat and lock set. Installed doors shall be prehung or sized to fit frame complete with stops, weatherstripping and jambs. After trimming and fitting of door, all edges shall be finished to match existing or blend in with the adjoining and surrounding work. A door bumper and threshold are included on all exterior doors. 16. EXTERIOR STORM DOOR Rear ❑X Repair: ❑ Front Storm Door E !ix &a Storm Door Screen ❑ Replace: ❑ Front Storm Door ❑ Side Storm Door Storm doors shall be solid core aluminum or wood with storm and screen inserts and complete with hardware and strike plate. Installed doors shall be sized to fit frame. All edges of wood storm shall be finished to match existing or blend in with the adjoining and surrounding work. -11- 1 - LNTERIOR ECORS F Repair Door to: C Basement ❑ Bathroom C Bedroom LJ Bedroom C Bedroom Q Bedroom ❑ Closet in Replace Door To: ❑ Basement ` Bathroom F7 Bedroom ❑ Bedroom 0 Bedroom F — I Bedroom C Closet in Interior doors shall be hollow core or panel and complete with hardware and strike plate. Installed doors shall be prehung or sized to fit frame complete with stops and jambs. After trimming and fitting of door, all edges shall be finished to match i existing or blend in with the adjoining and surrounding work. A door bumper is included on all interior doors. Bathroom door shall be provided with "privacy" lock set. [] Addition: -12- 18. EXTERIOR STORM AND SCREEN WINDOWS Repair ❑ Replace ❑ Basement ❑ Kitchen ❑ Diningroom Livingroom ❑ Bathroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Bedroom Storm windows shall be aluminum combinations of medium quality, unless otherwise specified in the Scope of Improvements. 19. HOUSE WINDOWS ❑ Repair and Refinish Windows in: ❑ Basement ❑ Kitchen ❑ Diningroom ❑ Livingroom ❑ Bathroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Bedroom • Repair of windows or replacements of frames, sills, sash, trim and hardware shall match existing work in wood, design, dimensions and finish, unless otherwise specified in the Scope of Improvements. Where sash counter balances are to be removed, the area must be insulated properly. Friction guides are acceptable as substitutes. Cotton cord replacement is acceptable. A positive locking device shall be installed on all windows. All broken glass shall be replaced with new glass, matching existing in size and design and properly reglazed. All excess material shall be removed and all glass left clean. Weather Seal Windows in: ❑ Kitchen ❑ Diningroom ❑ Livingroom ❑ Bathroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Basement Caulk and weatherstrip around all primary door and window frames, window panes or other locations that lead to an unheated space or which calls for a seal -and watertight job. ® Materials shall be of standard brands and application shall be in exact accordance with the manufacturer's specifications. -13- Replace Window in: Kitchen u Diningroom Livingroom ❑ Bathroom i Bedroom r-� Bedroom Bedroom [] Bedroom Basement Openings of new window units shall be framed to provide a rigid enclosure for the installation of windows. Frames shall be set plumb, level and square within clearance limits. New windows shall match the adjacent windows in design, glass, material and finish, unless otherwise specified in the Scope of Improvements. Installed windows shall be weatherstripped, left clean, tight and weatherproof. XE A positive locking device shall be installed on all windows. -7 C Installed below grade bedroom window used as an excape exit shall have a opening size of not less than 5.7 sq. ft. with a minimum of 24" depth and 20" width. The interior sill height shall not be more than 48" from floor. Exterior of window shall be cleared for exit and when an areawell is installed it shall be of treated wood or galvanized metal. 0 When a bedroom window unit is replaced, the new unit shall be sized to meet the requirements of the State Building Codes. Addition: • 20. INSULATION X)EI Insulate attic space to meet a minimum R -38 rating and have a vapor barrier, where accessible. Air chutes shall be installed where there is soffit venting. Provide protection around all recessed lights, junction boxes and chimney. Access opening shall be sized a minimum of 22" x 30 ", framed and insulated. X4X] Insulate exterior walls to a minimum of R -11. Drill holes and blow in insulation between wall studs approximately every 16" on center and below each fire stop. Holes shall be patched to match existing or blend with adjoining and surrounding work. vo Insulate exterior foundation with rigid insulation of R -11 to above grade and extend insulation 2' below grade and cover insulation with a non - combustible material. Foundation insulation shall be at the discretion of the Grant Administrator. -14- INSULATION continued X® Insulate accessible area rim joist to a minimum of R -19 with vapor • barrier facing warm side. ❑ Addition: 21. VENTILATiCI XE Provide attic ventilation per Uniform Building Code as follows: Ventilation - where determined necessary by the building official due to atmospheric or climatic conditions, enclosed attics and enclosed rafter spaces formed where ceilings are applied direct to the underside of roof rafters shall have cross ventilation for each separate space by ventilating openings protected against the entrance of rain and snow. The net free ventilating area shall be not less than • 1/150 of the area of the space ventilated, except that the area may be 1/300, provided at least 50% of the required ventilating area is provided by ventilators located in the upper portion of the space to be ventilated at least three feet above eave or cornice vents with the balance of the required ventilation provided by eave or cornice vents. The openings shall be covered with corrosion- resistant metal mesh with mesh openings of 1/4 in dimension. Provide kitchen ventilation - Exhaust Fan - kitchen without means of natural or below minimum requirements of ventilation shall be equipped with a mechanical exhaust fan. Installation shall include mounting fan on ceiling, venting through the roof or exterior wall with cap, insulating vent in unheated space and wiring on a separate wall switch. ❑ Repair kitchen ventilation. ❑ Provide bathroom ventilation - Exhaust Fan - Bathroom without means of natural or below minimum requirements of ventilation shall be equipped with a mechanical exhaust fan. Installation shall include mouting fan on ceiling, venting through the roof or exterior wall with cap, insulating vent in unheated space and wiring on a separate wall switch. ❑ Repair bathroom ventilation. ❑]Addition: -15- 22. EXTERIOR SIDING 7 Repair or replace all rotten boards and nail down all loose boards or • shingles prior to receiving new siding. Side walls shall be furred out if necessary to make walls level, plumb and free from waves, buckles and sags. Installation shall be in strict compliance with the manufacturer's specifications. . Existing brick work shall be repaired to match existing or blend in with the adjoining and surrounding work. Reside exterior with .024 gauge, nominal thickness, insulated type aluminum of medium quality or equal. Color selection by owner. Installation shall include window J channel, door channel, inside and outside corners, starter strip, finish mould and caulking. Backing shall be installed under siding and be of proper thickness. All nails and rivets shall be properly secured. Staples shall not be used for installation. ❑ Cover all window, door trim and sills with baked enamel aluminum, minimum .019 gauge. Color selection by owner. CD Lap - Siding shall be minimum 7/16" thick x 16 long, smooth, pre - primed masonite panels. Siding shall be installed with corrosion resistant nails and all ends shall be attached together with H- moulding and sealed with exterior caulking. Lap siding shall extend to 6 above finish grade. Novelty - Cover indicated sections of structure with new wood novelty • siding, or other specified material. All joints shall be tight and adjacent end joints shall be staggered. Siding shall be installed over vapor barrier, blend and conform with existing structure. All horizontally applied siding shall be staggered with minimum of two stud spaces. Cover soffit and fascia with .019 gauge baked enamel aluminum using solid or perforated soffit material. Color selection by owner. Soffit panels shall be secured in channels to eliminate looseness and rattling. Materials shall be lapped for proper drainage and applied in full sections. Caulk joints. Staples shall not be used for installation. XrAAddition: NOTE: Repair block and wall by entry to the garage overhead door. • -16- 23. PAINTING [) Repaint exterior siding, cornice, window and door trim including doors and windows as follows: Wood surfaces to be painted shall be cleaned by best means possible to remove loose and scaley paint and rough spots any any obvious oil and /or grease that may be covering existing wood or paint. Where previous coats have chipped and peeled, the edge shall be feathered to the maximum extent feasible and spot primed with a high quality oil base paint before finish coats are applied. No paint shall be applied until all nail holes have been filled and sanded and all defects in wood work have been eliminated. Paint shall be medium grade and applied according to the manufacturer's specifications and applied to secure full coverage. Use primer where required. Owner to select color from readily available selection. Spray application is not acceptable, unless authorized by the Grant Administrator. 2 4. GUTTERS AND DOWN SPOUTS �❑ Provide gutters and down spouts as follows: a) New gutters shall be minimum 5" wide .032 gauge aluminum with hangers placed under roofing. b) New downspouts shall be minimum 2" x 3 rectangular .020 gauge aluminum. C) Finish of gutters and downspouts shall be a baked on enamel finish. Owner to select color from readily available selection. d) Gutters shall be installed with slight pitch to the downspout. Gutters shall be securely mounted to the roof, 36 or less on center. Downspouts to be installed at one end of gutters and extend 2' at the bottom with extension. extension or splash block shall be installed when the gutter and downspout system does not directly connect into a drainage system. ❑ Addition: -17- 25. ROOFING Provide new roof per City of Brooklyn Center Handout and as follows: New roofing shall be in compliance with the State Building Codes and Manufacturer's installation instructions. Flashing, plumbing jacks and roof vents shall be checked and replaced with new when damaged, rusted or missing. Drip edge g p shall be installed along eave edge. All damaged or rotted sheathing boards shall be replaced with new. End joints shall be made over a rafter and all sagging portions of roof shall be corrected. Materials - New roofing shall carry the Class C label of wind resistance from the Underwriter's Laboratories and be applied according to the manufacturer's specifications. The type and weight of the materials used for the roofing shall be in compliance with the State Building Codes. Application - Surfaces to which roofing is to be applied shall be even, sound, thoroughly clean, dry and free from all defects that might affect the quality of application. a) Asphalt Shingles - No more than one overlay of asphalt shingles shall be applied over an existing asphalt shingle roof. Shingles shall be fastened with not less than four nails or staples per shingle. installed shingles shall be 235# - 240# 3 -tab self sealing. Roll roofing shall be installed when the slope is 4 or less. Owner to select color of shingles from readily available selection. b) Built -up - Existing roofing material shall be removed down to bare wood. New roofing shall be 4 -ply built -up tar and slag or gravel roof, including all new flashing of either metal or asphalt mineral roll material. Roof shall be installed in such a way that there is no ponding water. c) Wood Shingles and Shakes - Repair of existing roof shall match existing or blend in with the adjoining and surrounding work and include a contractor warranty for the repair work. d) Fiberglas - is an acceptable roofing material. Tear off existing roof and remove from site. ❑ Addition: • -18- ' 26. CHIMNEY • ❑ Repair or replace missing brick. ❑ Tuck pointing shall be done only after the joints have been raked out to a minimum depth of 1/2" and wetted. ❑ Provide masonry chimney cap. ❑ Addition: 27. KITCHEN AND BATHROOM CABINETS ❑ Repair damaged kitchen cabinets. ❑ Repair damaged bathroom lavatory cabinet. • ❑ Replace or add kitchen cabinets: New cabinets shall be described in complete detail, including design, dimension, installation and location of top or base units, detail of drawers, doors and shelves, type of material and finish in the Scope of Improvements. The contractor shall submit a drawing of the proposed cabinets. ❑ Replace bathroom lavatory cabinet: Vanity - lavatory base cabinet shall be medium quality. Top shall be approximately 22" wide with 3 11 back splash and covered with formica preformed or self edge top. Imitation moulded marble tops can be used as a substitute. ❑ Replace kitchen cabinet top: Kitchen Counter Top - shall be self edge or self forming formica with 4 backsplash. Separate backsplash material shall match formica counter top material. ❑ Replace bathroom lavatory vanity: Vanity -lavatory base cabinet shall be medium quality. Top shall be approximately 22" wide with 3 " back splash and covered with formica preformed or self edge top. Imitation moulded marble tops can be used as a substitute. ❑ Provide bathroom medicine cabinet: Cabinet - shall be standard size, recessed, or surface mounted, with a minimum of three shelves and mirror. When light fixture is included, fixture shall be wired on separate wall switch. -19- 28. SMOKE DETECTORS C Install UL listed battery - operated smoke detector per manufacturer's • instructions without escape light complete with working batteries. 29. GRADING ❑ Provide grade fill as follows: ❑ Grade - Fill material shall be free of debris or other detrimental material. All fill shall be compacted to a density that will avoid damaging settlement to lot improvement. Top soil shall be a minimum of 4 compacted depth and free from stones, debris and other materials detrimental to plants. Slope away from building, 4 11 -6 " over a distance of 3'-4' out from wall. Foundation walls shall extend at least 6 above the finished grade adjacent to the wall at all points. ❑ Seeding and Sodding as required. • 30. EXTERIOR CONCRETE WORK X® Replace crumbled or broken sidewalks. X� Replace crumbled or broken garage entrance apron. 31. MISCELLANEOUS •