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HomeMy WebLinkAbout1988 07-11 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER JULY 11, 1988 1. Call to Order 2. Roll Call 3. Approval of Minutes - June 27, 1988 4. Resolution: a. Approving Earle Brown Farm Management Company Contract - Property Management and Promotional Contract b. Approving One (1) Brooklyn Center Economic Development Authority Grant (File No. H64) C. Amending the Brooklyn Center Rehabilitation Grant Program Guidelines - Increase maximum grant from $8,250 to $10,000 to be consistent with Hennepin County guidelines 5. Adjournment i MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION JUNE 27, 1988 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Dean Nyquist at 10:56 p.m. ROLL CALL President Dean Nyquist, Commissioners Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis. Also present were EDA Director Gerald Splinter, Director of Planning and Inspection Ron Warren, Finance Director Paul Holmlund, City Attorney Charlie LeFevere, EDA Coordinator Brad Hoffman, and Administrative Aid Patti Page. APPROVAL OF MINUTES - JUNE 13 1988 There was a motion by Commissioner Lhotka and seconded by Commissioner Theis to approve the minutes of the June 13, 1988, Economic Development Authority meeting as submitted. The motion passed. President Nyquist abstained from the vote. RESOLUTION NO. 88 -10 Member Gene Lhotka introduced the following resolution and moved its adoption: RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANT (FILE NO. H63) The motion for the adoption of the foregoing resolution was duly seconded by member Celia Scott, and the motion passed with Commissioner Hawes opposed. Commissioner Hawes stated he still objects to people moving into a home and obtaining a grant one year later. MCGOUGH CONSTRUCTION CONTRACT The EDA Coordinator stated under this contact McGough Construction would provide the daily, on -site supervision and coordination for the project. RESOLUTION NO. 88 -11 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING AND APPROVING CONTRACT WITH MCGOUGH CONSTRUCTION CO. The motion for the adoption of the foregoing resolution was duly seconded by member Rich Theis, and the motion passed unanimously. 6 -27 -88 -1- SPECIAL MEETING DATE EARLE BROWN FARM DESIGN The EDA Director stated he would like to hold a joint meeting of the EDA and the Earle Brown Farm Committee to discuss the Earle Brown Farm design. The EDA Coordinator stated at this meeting the EDA would be taken through the schematic design of the farm and the cost estimates. He noted there would need to be some discussion on the proposed cuts to the farm design to bring it within the proposed budget limits. There was a motion by Commissioner Lhotka and seconded by Commissioner Hawes to hold a special joint meeting of the Economic Development Authority and the Earle Brown Farm Committee on July 7, 1988, at 7 p.m. The motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Scott and seconded by Commissioner Theis to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 10:57 p.m. President 6 -27 -88 -2- CITY OF BROOKLYN CENTER Council Meeting Date 7 -11 -8e Agenda Item Number REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: Earle Brown Farm Management Agreement DEPT. APP Al-: C n 'g ture - title MANAGER'S REVIEW /RECOMMENDATION: No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached The contract before the EDA Monday evening with the EBF Management Co. (AI Beisner) and the EDA is for the total management of the farm. It is more than a property management contract per . se. Under this contract Al is the leasing agent, property manager, promotional manager, and business manager of the center. Compensation to EBF Management is $98,000 annually. The management fee includes all accounting, management, marketing, promotional, and scheduling services. Other costs, including labor cost not associated with the management of the farm, such as maintenance and so forth are reimbursable and subject to an annual budget like any other department submission. Section 10:02 provides an incentive basis for compensation on the farm under circumstances- of a profit. This is the part of the contract that makes it lucrative for Al. Note however if EBF Management does well, the EDA does well also. In many ways, this whole concept is new and experimental, especially for Brooklyn Center. The contract on balance is fair to the parties involved. However, should the EDA find this contract for any reason to be intolerable, section 14:02 allows the EDA to terminate this contract with 30 days notice. It is an extremely strong termination clause and it is one sided. RECOMMENDATION: I would recommend passage of this contract. Both Al Beisner and myself will be present Monday evening to discuss this contract. y� Member introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION ACCEPTING AND APPROVING CONTRACT WITH EBF Management Co. WHEREAS, the Economic Development Authority has accepted resumes from property management professionals for management and promotion of the Earle Brown Farm; and WHEREAS, the Economic Development Authority has reviewed the submissions of each property management firm; and WHEREAS, the firm of EBF Management Company was determined to be the group that best suits the needs of the Brooklyn Center Economic Development Authority for the restoration of the Earle Brown Farm. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that the negotiated contract with EBF Management Company is hereby accepted and the President and Executive Director are hereby authorized to execute an agreement for those services. Date President The motion for the adoption of the foregoing resolution was duly seconded by member , 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. I MANAGEMENT AGREEMENT THIS AGREEMENT, entered into as of the day of , 1988, by and between ECONOMIC DEVELOPMENT AUTHORITY of the City of Brooklyn Center, a public body corporate and politic under the laws of the State of Minnesota (hereinafter referred to as "Owner "), and EBF Management Co., a general partnership, ( "Manager "), WITNESSETH: WHEREAS, Owner is desirous of having Manager operate and manage Owner's Project known as the "Earle Brown Farm;" and WHEREAS, Manager is desirous of operating and managing said Project on behalf of Owner; NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, Owner and Manager agree as follows: ARTICLE 1 DEFINITIONS 1.01 Definitions As used herein the following terms shall have the respective meanings indicated below: (a) Site - the parcel or parcels of real estate more particularly described on Exhibit A, attached hereto and made a part hereof. (b) Building - all buildings, structures and im- provements now located or to be constructed on the Site and all fixtures and equipment attached to, forming a part of and neces- sary for the operation of such buildings, structures or r improvements ( including, without limitation, heating, lighting, sanitary, air-conditioning, laundry, refrigeration, kitchen, elevator and similar items), and such (i) restaurants, bars, and banquet, meeting and other public areas, (ii) office and commer- cial space, including concessions and shops, (iii) garage and parking space, (iv) storage 'and service areas, (v) recreational facilities and areas, (vi) public grounds and gardens, (vii) permanently affixed signage and (viii) other facilities and appurtenances necessary for the operation of the Building. (c) Furnishings and Equipment - all furniture, furnishings and equipment (excepting Operating Equipment as hereinafter defined) required for the operation of the Project, including, without limitation, (i) office furnishings and equipment, (ii) specialized hotel equipment necessary for the operation of any portion of the Building as a hotel, including equipment for kitchens, laundries, dry cleaning facilities, bars, restaurants, public rooms, commercial and parking space, and recreational facilities and (iii) all other furnishings and equipment neces- sary for the operation of the Project. (d) Operating Equipment - all operating equipment required for the operation of the Project, including chinaware, glassware, linens, silverware, utensils, uniforms and all other similar items. (e) Operating Supplies - all guest supplies and other consumable items used in the operation of a hotel, such as fuel, soap, cleaning materials, matches, stationery and all other similar items, other than food and beverage inventories. 2 (e -1) Inventories - food and beverages. (f) Project - a collective term for the Site, the Building, the Furnishings and Equipment, the Operating Equipment, the Operating Supplies and the Inventories. (g) Plans and Specifications - a collective term for all designs, layouts, drawings, plans, specifications and decor and concept themes pertaining to the Project. (h) Completion - the date on which the Project receives (i) an architect's certificate from the architectural firm engaged by Owner for the Project, certifying a fully constructed and completed Project ready for operation, and (ii) an uncondi- tional certificate of occupancy from the local governmental authority pursuant to whose jurisdiction the Project was con- structed. (i) Opening - the date upon which Manager first opens the Project and commences business, which date may or may not be the so- called "grand opening" (if any) of the Project. (j) Development Period - the period of time from the date of this Agreement to Opening. (k) Owner's Standard Accounting Principles - generally accepted accounting principles and procedures as used by Owner. 3 R � ARTICLE 2 SCOPE OF AGREEMENT 2.01 Subject Matter The subject matter of this Agreement is the Earle Brown Farm Project to be located on the land de- scribed in Exhibit "A" hereto and to be known as "The Earle Brown Farm." 2.02 Development Owner covenants that it has at its cost, acquired the Site and Building and is developing the same and that it shall deliver to Manager for management and operation a fully completed Project. 2.03 Grant to Manager Owner hereby grants to Manager the sole and exclusive right to perform and direct the management and operation of the Project for the account of Owner. Manager hereby accepts said grant and agrees that it will supervise and direct the management and operation of the Project, all pursuant to the terms of this Agreement. The parties agree that they will cooperate with each other in every reasonable and proper way to permit and assist Manager to carry out its duties hereunder, and to provide for operations in conformity with the foregoing. 2.04 Funding Owner agrees to provide all funds, both initially i lly and throughout the term of this Agreement, as shall be necessary to perform and satisfy Owner's covenants and responsi- bilities under this Agreement. 4 ARTICLE 3 TERM AND RENEWALS 3.01 Effective Date This Agreement shall be effective upon execution by Owner and Manager. 3.02 Commencement Date The Commencement Date of the Initial Term hereunder shall'be the date of Opening. 3.03 Initial ; ,Term . This Agreement shall continue for an Initial Term of one (1) year from the Commencement Date, unless sooner terminated as hereinafter provided. This Agreement shall be automatically renewed from year to year for additional one -year terms pursuant to the same covenants and conditions as herein set forth, unless either party shall give to the other, party written notice of its election not to renew this Agreement, said notice to be received by the non- terminating party not less than thirty (30) days prior to the termination of the original or any applicable renewal term hereof. ARTICLE 4 DEVELOPMENT OF THE PROJECT 4.01 Owner's Covenants Owner covenants and warrants that it presently has control of the Site and that such control is or will be in the form of fee simple title thereto, provided that such title may be subject to such easements, restrictions and exceptions as do not materially interfere with Manager's rights hereunder. Owner further covenants and warrants that it has obtained or shall obtain all governmental consents, licenses and permits to enable Owner to acquire and construct and Manager to 5 f operate the Project on the Site. Manager will cooperate with Owner, at Owner's expense, in submitting all applications for governmental consents, permits or licenses which may be required, and shall act as licensee or co- licensee if required in connec- tion with the issuance of any such license or permit. 4.02 Architects, Engineers, Consultants and other Special- ists Owner agrees to engage and retain, at its expense, a qualified and responsible firm or firms of architects and such engineers, designers, decorators, landscape architects and other specialists and consultants as Owner shall deem necessary and appropriate to design, plan and construct the Project. Owner agrees to cause such firms and persons to prepare full and complete Plans and Specifications, both interior and exterior, with respect to the Project. The Plans and Specifications, which shall include any changes or modifications thereto subsequently made or authorized, shall be submitted to Manager for its infor- mation. 4.03 Construction and Completion Owner agrees at its cost to construct the Building on the Site in accordance with the Plans and Specifications. 4.04 Furnishing, Equipping and Supplying Owner agrees at its cost to furnish, equip and supply the banquet facilities and Bed and Breakfast portions of the Project with Furnishings and Equipment, and Operating Equipment in substantive accordance with the Plans and Specifications. Manager agrees, as part of its Pre - Opening responsibilities, to purchase on behalf of and at the 6 f expense of Owner, all necessary Operating Supplies and Inventory M as approved b Owner in the Pre-Opening Budget. Y p g g ARTICLE 5 TITLE TO PROJECT 5.01 Ownership Owner covenants and agrees that it has, or will acquire, and throughout the term of this Agreement will maintain, full ownership of the Site, the Building and the Furnishings and Equipment and that such ownership will not be subject to any liens or encumbrances other than Mechanics liens, payment of which is not in default or are being contested by appropriate legal proceedings, the lien of taxes or special assessments subject to Section 5.02 hereof, other liens, not delinquent, arising by operation of law, and such easements, exceptions or restrictions as shall not materially interfere with the exercise of Manager's rights hereunder. 5.02 Covenants of Title Owner covenants during the term hereof that Manager shall and may peaceably and quietly operate the Project in accordance with the terms of this Agreement, free from molestation, eviction and disturbance by Owner or by any person through whom Owner shall derive its title to or right to occupy and use the Project. Owner also covenants and agrees to pay, prior to delinquency, all taxes and assessments which may become a lien on or are assessed against the Project or any component thereof and which may be due and payable during the term hereof, unless payment thereof is in good faith being contested by Owner. 7 t ARTICLE 6 PRE- OPENING PROGRAM 6.01 Pre - Opening Program No later than 30 days after the Effective Date of this Agreement, Manager will prepare and furnish Owner copies of a comprehensive Pre - Opening Budget. Such Budget will set forth all items which are reasonably necessary or desirable to prepare the Project for Opening including, among other items, initial Operating Equipment and Operating Supplies, advertising and promotion, and travel and business entertainment (including opening parties and ceremonies). The Pre - Opening Budget and plan shall not be implemented until approved by Owner, and Manager and Owner shall cooperate to develop a mutually acceptable Pre - Opening Plan and Budget. Manager, for and on behalf of Owner and at.Owner's expense, is authorized to take all actions deemed necessary by Manager to implement, perform and /or cause the performance of the items set forth in the Pre - Opening Budget. Any costs incurred pursuant to this Article 6 not in excess of the Pre - Opening Budget will be considered Pre - Opening Expenses, for which Owner shall be liable. Manager shall not incur Pre - Opening costs in excess of the Pre - Opening Budget without the prior written approval of Owner. 6.02 Payment of Pre - Opening Expenses Owner shall reim- burse Manager for all Pre - Opening Expenses within the Pre - Opening Budget as provided in Section 11.02 herein. 6.03 Staff Manager agrees at Manager's cost to recruit and train the staff of the Project in accordance with the limits of the Pre - Opening Budget. Supervisory and managerial 8 employees shall be skilled and experienced when hired. To the extent practical, Pre - Opening staff training and development may be conducted at the Project during the Development Period. 6.04 Pre - Opening Advertisement During the Development Period, Manager agrees at Owner's cost to advertise and promote the business of the Project' as provided for in the Pre - Opening Plan and Budget. 6.05 Initial Operating Supplies Prior to Opening, Manager agrees to purchase on behalf of and at the expense of Owner, all necessary Inventory and Operating Supplies as provided for in the Pre - Opening Budget. Owner agrees to coordinate its responsibilities to construct, furnish, equip and otherwise supply the Project with Manager's responsibilities hereunder at all times during the Development Period. 6.06 Manager's Pre- Opening Compensation As compensation for Manager's service prior to the Opening, Owner will pay to Manager $8,166 per month, payable on the second Tuesday of each succeeding calendar month. ARTICLE 7 STANDARDS AND MANAGER'S CONTROL 7.01 Operational Standards Manager covenants to and shall operate the Project, at the expense of Owner, in accordance with the provisions of this Agreement, the Yearly Budgets a g � Y - g P proved by Owner pursuant to Section 9.02 below, in accordance with the Project Management Plan attached hereto as Exhibit B, and in a competent and professional manner. 0 9 7.02 Manager's Control Manager shall make all normal, ordinary course of business decisions relating o the Pro g 7 without being required to obtain approval for each such decision from Owner. However, Owner may at any time designate, by notice delivered to Manager, decisions or activities for which Owner's prior approval will be required. Notwithstanding the foregoing, Manager is authorized to take actions or decisions without approval by Owner in an emergency where immediate action is required and Manager is unable to, or it is impractical to, obtain approval from Owner. Where any such decision or action is taken by Manager, Manager shall advise Owner thereof as soon as feasible. ARTICLE 8 OPERATION OF THE PROJECT 8.01 Permits Owner shall use its best efforts to obtain and keep in full force and effect all necessary licenses and permits, including liquor, bar, restaurant, sign, hotel and busi- ness licenses, as may be required for the operation of the Project. All licenses and permits are required to be in effect at Opening. Manager undertakes to assist Owner, at Owner's expense, to obtain and maintain all such business licenses and permits in effect and covenants that, if required by law, it will apply for and act as licensee in respect of any such license or permit and that in managing the Project it will comply with any conditions within its control or authority which are set out in or otherwise applicable to the issuance, reissuance and mainte- nance of any such licenses and permits and at all times will 10 4 operate and manage the Project in accordance with such conditions and any other legal requirements. 8.02 Equipment and Supplies After Opening, Manager shall provide at Owner's expense all Operating Supplies and Operating Equipment as provided in the approved Budget. 8.03 Personnel Manager will hire, supervise, direct, dis- charge and determine the compensation, other benefits and terms of employment of personnel working in the Project within the limits of the Yearly Budgets. Manager is to be the sole judge of Y g g J g the fitness and qualifications of all personnel and is vested with absolute discretion in the hiring. It is expressly under- stood and agreed that personnel are in the sole employ of Manager and are not in the employ of Owner. Manager shall comply with • all requirements of law with respect to the employment of its employees and shall indemnify Owner from and against all liabili- ty resulting from any failure of Manager to do so. Owner is welcome to consult or communicate with Manager regarding Project personnel at any time, but Owner shall not interfere with or give orders or instructions to any personnel employed at the Project. Manager may charge back to Owner pursuant to Section 11.02 all salaries, taxes, benefits, and other expenses payable on account of such employees, but only up to the amount approved for such purposes in the Pre - Opening or Yearly Budgets or approved in writing by Owner prior to the incurrence of such costs; provided, however, that any employee expenses incurred for the purpose of providing management services, bookkeeping, marketing services, promotion activities, or scheduling and coordinating of events 11 for the Project are included in the Management Fee and shall not be reimbursed.. Manager's employees who handle or are responsible for handling the monies of Owner or the Project shall be bonded by a fidelity bond acceptable to Owner. 8.04 Sales, Marketing and Advertising Manager and Owner shall consult as appropriate during the term of this Agreement to develop sales, marketing and advertising programs to be jointly approved by them. Manager, on behalf of Owner at Owner's ex- ense and subject to the provisions of t Bud c P � J p ion he get applicable thereto, shall advertise and promote the business of the Project and shall institute and supervise a sales and marketing program. 8.05 Maintenance and Repairs Manager shall, on behalf of Owner and at Owner's expense, make or cause to be made all repairs, replacements, corrections and maintenance items as shall be required in the normal and ordinary course of operation of the Project. In conjunction therewith, Manager is authorized to make and enter into such contracts and agreements as are in Manager's opinion necessary for the repair and maintenance of the Project and to cause the same to be paid when due; provided, however, that any expenditure of $5,000.00 or more must be approved in advance by Owner. Manager's commitments and expenditures on behalf the Project shall not exceed the amounts budgeted without Owner's Consent. 8.06 Capital Expenditures (a) Owner recognizes the necessity of replacement of Fur- nishings and Equipment and other ordinary Project capital 12 replacement items (collectively "Capital Replacements "). Owner agrees to expend such amounts of Capital Replacements as shall be required in the normal and ordinary course of operation of the Project. (b) In the event a condition should exist in, on or about the Project of an emergency nature, including structural re- pairs, which requires that immediate repairs are necessary to preserve and protect the Project and assure its continued opera- tion, and to protect the guests, tenants, or employees, Manager shall immediately notify Owner of the need therefor and shall advise Owner of all corrective measures proposed to be taken and the estimated costs thereof. Manager shall not make any such repairs, however, without the prior written approval of Owner. ARTICLE 9 FISCAL MATTERS 9.01 Accounting Matters and Fiscal Periods The books and records reflecting the Project operations shall be kept by Manager in accordance with Owner's Accounting Principles and in accordance with generally accepted accounting principles applied on a consistent basis, and shall be maintained either at the Project or at another location approved by Owner. Owner's and Manager's accountants shall each have the right and privilege of examining said books and records at any reasonable time. 9.02 Yearly Budgets Not later than thirty (30) days after the Effective Date of this Agreement, and not later than June 15 or the following Monday of each full calendar year thereafter, Manager shall submit to Owner, for Owner's approval, a proposed 13 r operating plan and budget for the ensuing full or partial year, as the case may be, setting forth in reasonable detail an esti- mate of the income and expenses of the Project for the next ensuing year. When approved by Owner each such budget shall be the "Yearly Budget ". Yearly Budgets shall not be effective unless approved by Owner who shall have the right and authority to make any revisions thereto it deems necessary or desirable. Manager shall revise the Yearly Budgets from time to time to reflect any unpredicted significant changes, variables or events or to include significant additional unanticipated items of income or expense. Any such revision shall be submitted to Owner for approval, which approval shall not be unreasonably withheld and shall be deemed given unless written objection thereto is delivered by Owner to Manager within twenty (20) days after submission thereof. Upon request of Owner, Manager shall provide Owner with the data and information utilized in preparing the Yearly Budgets or any revisions thereto. Manager shall not be deemed to have made any guarantee or warranty in connection with the Yearly Budgets. ARTICLE 10 FEES TO MANAGER 10.01 Base Management Fee In consideration of the manage- ment of the Project by Manager, Owner agrees to pay to Manager a Base Management Fee equal to $8,166 with respect to each fiscal month during the term of this Agreement. The Base Management Fee for the immediately preceding month shall be paid monthly to Manager on the second Tuesday of the succeeding month. 14 10.02 Incentive Fee For each 12 -month term of this Agreement after the Opening, Owner shall pay to Manager an Incentive Fee which shall equal a percentage of the Profits for such 12 -month term as follows: Manager shall receive 50% of all Profits between $1 and $100,000, 45% of all Profits between $100,000 and $200,000, 40% of all Profits between $200,000 and $300,000, 30% of all Profits between $300,000 and $400,000, and 25% of all Profits of $400,000 or more. The term "Profits" shall be defined as the amount of col- lected Adjusted Gross Revenues in excess of Operating Costs. "Operating Costs" shall be defined as costs actually incurred for operation of the Project pursuant to the Yearly Budgets, includ- ing the Base Management Fee. The term "Gross Revenues" shall be defined as all revenues and income of any nature derived by Owner directly or indirectly from the Project or from the use or operation thereof, including total room sales, food and beverage sales, (except for leased food and beverage operations and vending machine sales, in which case only the lease rental and Owner's share of net vending machine receipts and not the gross receipts of the lessee or vending concessionaire shall be includ- ed) , telephone, telegraph and telex revenues and rental or other payments from lessees, sublessees and concessionaires (but not the gross receipts of such lessees, sublessees or concession- aires). "Gross Revenues" shall not include (i) any proceeds from the sale or other disposition of the Project Furnishings and Equipment or other capital assets or operating supplies or bulk 15 r sales of Inventories; (ii) any insurance proceeds; (iv) any condemnation awards; or (v) any proceeds of financing, refinanc- ing or disposition of the Project or any interest therein. The term "Adjusted Gross Revenues" shall be defined as Gross Revenues less: (i) any gratuities or service charges added to a custom- er's bill; (ii) an credits `or refunds made to customer. ten- t � ants, guests or patrons; (iii) any sums and credits received by Owner for lost or damaged merchandise; (iv) any sales taxes, excise taxes, gross receipt taxes, admission taxes, entertainment taxes, tourist taxes or charges; entertainment taxes, hotel taxes and similar taxes or governmental charges on sales of accommoda- tions, goods or services. The Incentive Fee shall be paid to Manager upon his submis- sion to Owner no later than 30 days after the end of the 12 -month period, a detailed statement of revenues, receipts, expenses, and disbursements for the year. If this Agreement is terminated prior to the completion of a 12 -month term after the Opening, the Incentive Fee shall be calculated on a pro rata basis for the actual completed term of the Agreement. ARTICLE 11 REVENUES AND DISBURSEMENTS 11.01 Revenues Manager shall be responsible for collect- ing all rents, fees, sales revenues, and all other revenues generated by and in the Project. To the extent such revenues are e collected by check or other negotiable .instrument, Manager will have such instruments made payable to Owner. Manager shall no 16 later than the Wednesday and Friday of each week deposit all revenues collected by it in Owner's Project Bank Account as designated by Owner. 11.02 Disbursements It is understood that Manager shall enter into contracts and incur expenses for the operation of the Project as provided herein but not to exceed the amounts budget- ed. Manager shall not enter into any contracts requiring more than 30 days notice for termination without the prior written approval of Owner. Manager shall pay promptly all invoices for expenses incurred for the operation of the Project, and Owner shall reimburse Manager for such payments upon receipt from Manager of a Request for Reimbursement in a form specified by Owner. Such Request for Reimbursement shall include a certifica- tion by Manager that the expenses for which reimbursement are sought are real and legitimate expenses properly incurred for the operation of the Project in accordance with this Agreement and the Project Management Plan. Requests for Reimbursement submit- ted to Owner by the f irst and third Tuesday of each month shall be paid by Owner on the second and fourth Tuesday of the same month, respectively. 11.03 Purchasing Requirements Manager shall comply with Owner's purchasing requirements as set forth in Exhibit C hereof and as may be subsequently amended by Owner in making any pur- chases for which Manager will seek reimbursement from Owner. 17 t , ARTICLE 12 INSURANCE 12.01 Insurance Except as otherwise provided herein, the Owner shall be responsible at all times for the placement of all insurance policies with respect to the Project and its operation. In the event the Manager should at some future time be authorized by the Owner in writing to place insurance policies, the compa- nies, the general agents, the amounts of coverage, and the risks insured shall be subject to approval of the Owner, and the Manager shall be permitted to receive and retain such insurance commissions as are customarily paid. (a) Manager shall carry Workers' Compensation insurance upon all its employees. (b) Owner agrees to indemnify Manager against any claims for damages or injury to persons or property in, on, or about the Building or any claims against Manager arising out of Manager's good faith performance of its obligations hereunder, and Owner shall at its own cost and expense defend any action or proceeding against Manager arising therefrom; provided, however, that Owner shall not be required to indemnify Manager against damages suffered as a result of the negligence or willful misconduct on the part of Manager, its agents or employees. ARTICLE 13 DAMAGE TO AND DESTRUCTION OF THE PROJECT 13.01 Termination Option If the Building shall be de- stroyed or substantially destroyed during the term of this Agreement by fire or other casualty, Owner may elect to terminate this Agreement upon thirty (30) days notice to Manager. 18 ARTICLE 14 DEFAULT AND TERMINATION 14.01 Events of Default It shall be an event of default hereunder (an "Event of Default ") if any one or more of the following events shall occur and in the case of the events specified in subparagraphs (b) hereof, the giving of the notice described in subparagraph (c) and the failure of the other party to cure the default or otherwise proceed within the time periods and otherwise as specified in subparagraph (c): (a) If a party ( "the Defaulting Party ") shall voluntarily or involuntarily be dissolved; apply for or consent to the appoint- ment of a receiver, trustee or liquidator of all or a substantial part of its assets; file a voluntary petition in bankruptcy or otherwise voluntarily avail itself of any federal or state laws for the relief of debtors; admit in writing its inability to pay its debts as they become due; make a general assignment for the benefit of creditors; file a petition or an answer seeking reorganization or arrangement with creditors or to take advantage of any insolvency law or file an answer admitting the material allegations of any petition filed against it in any bankruptcy, reorganization or insolvency proceeding; if an order, judgment or decree shall be entered by any court of competent jurisdiction on the application of any one or more creditors of such Defaulting Party adjudicating it a bankrupt or insolvent or approving petition seeking reorganization or appointing a receiver, trustee or liquidator of all or a substantial part of its assets, and such order, judgment or decree shall become final; 19 t (b) If Owner fails to reimburse Manager for any fees, charges, costs or expenses as set forth in this Agreement; (c) The giving of notice by either party, if the other in the opinion of the notifying party, shall have committed a material breach of this Agreement, and the notifying party shall have served written notice upon the other party setting forth the details of such alleged breach and the notified party shall not, within five (5) days after such notice, have cured such breach if it relates to the failure to pay money due hereunder and other- wise within thirty (30) days after such notice have cured such breach or if such non - monetary breach is of a nature that it cannot be cured within such thirty day period, the notified party shall not within such thirty day period have commenced and all times thereafter have diligently proceeded with all acts required to cure such breach. 14.02 Termination (a) Owner may terminate this Agreement at any time upon thirty (30) days written notice to Manager whether or not an Event of Default has occurred. (b) Upon the occurrence of an Event of Default under Article 14.01 by Owner, this Agreement shall terminate if the Owner fails to remedy such Event of Default within thirty (30) days after its receipt of notice to remedy; provided that if such Event of Default be of a non - monetary and also of a nature that it cannot reasonably be remedied within said thirty (30) day period, then such thirty (30) day period shall be deemed to be extended for such additional period as may reasonably be required 20 to remedy the same if the Owner shall promptly commence to remedy upon receipt of the notice and shall continue therewith with due diligence. (c) The election to terminate this Agreement for an uncured Event of Default shall not be exclusive, and the parties shall have, cumulatively, wi -th or without termination, any and all other rights and remedies which may be provided at law or inequity. (d) Upon any termination of this Agreement, all fees and payments due to Manager as of the effective date of termina- tion including all deferred, accrued and unpaid fees, charges and expenses, shall be paid to Manager within thirty (30) days after delivery to Owner of an itemized statement of such fees and payments. Manager shall deliver to Owner, or such other person or persons designated by Owner, copies of all books and records of the Project and all funds in the possession of Manager belong- ing to the Owner or received by Manager pursuant to the terms of this Agreement or of any of the Basic Documents; and assign, transfer or convey to such person or persons all service con- tracts and personal property relating to or used in the operation and maintenance of the Project, except any personal property which was paid for and is owned by Manager. Manager shall also, for a period of 90 days after such expiration or termination, make itself available to consult with and advise Owner or such other person or persons regarding the operation and maintenance of the Project at a reasonable consultation fee to be agreed upon between Manager and Owner. 21 (e) Upon any termination of this Agreement, Owner shall not be liable for any duties or obligations of Manager under any contract entered into by Manager for the operation of the Project; provided, however, that if Owner has approved a contract under Section 11.02 hereof with an expiration term of more than 30 days, Owner shall assume Manager's duties and obligations under such contract for the unexpired term of such contract remaining after the termination of this Agreement. In no event, however, shall Owner be responsible or liable for any default by Manager under such contract. (f) No covenant, term or condition of this Agreement to be performed by either party shall be waived except by written consent of the other party, and forbearance or indulgence by either party in any regard whatsoever shall not constitute a waiver of the term, covenant or condition to be performed by the other party, and until complete performance by the delinquent party of such term, covenant or condition, the other party shall be entitled to invoke an remedy available under this Agreement, Y Y g notwithstanding such forbearance or indulgence. ARTICLE 15 NOTICES 15.01 Procedure All notices or other communications provided for in this Agreement shall be in writing and shall be personally served or sent by postage prepaid Registered or Certified Mail at the following addresses until such time as written notice, as provided hereby, of a change of address with a new address to be used thereafter is delivered the other party: 22 OWNER: Economic Development Authority of the City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 MANAGER: EBF Management Co. 6100 Summit Drive Brooklyn Center, MN 55430 The delivery and receipt of any such mailed notice shall be presumed to have occurred at the address to which it is mailed within seventy -two (72) hours, but such presumption shall be rebuttable. Upon request a party shall send copies of any notice or communication by ordinary mail as instructed by the other party. ARTICLE 16 RELATIONSHIP, AUTHORITY AND FURTHER ACTIONS 16.01 Relationship Manager and Owner shall not be con- strued by execution of this Agreement as joint venturers or partners of each other and neither shall have the power to bind or obligate the other except as set forth in this Agreement. 16.02 Further Actions Each party agrees to execute all contracts, agreements and documents and to take all actions necessary to comply with the provisions of this Agreement and the intent hereof. ARTICLE 17 APPLICABLE LAW 17.01 Scope The interpretation, validity and performance of this Agreement shall be governed by the laws of the State of Minnesota. If any of the terms and provisions hereof shall be held invalid or unenforceable for any reason, such invalidity or unenforceability shall in no event affect any of the other terms 23 or provisions hereof, all such other terms and provisions to be valid and enforceable to the fullest extent permitted by law; provided, however, if in any event any material part of Owner's or Manager's obligations under this Agreement shall be declared invalid or unenforceable, the other party shall have the option to terminate this Agreement.' ARTICLE 18 SUCCESSORS AND ASSIGNS 18.01 Assignment by Manager Manager shall not assign or in any manner sell or transfer any of its rights and interests as Manager hereunder without the prior written consent of Owner. 18.02 Assignment by Owner Owner shall not assign (or permit the assignment of) any of Owner's interest in this Agree- ment without the prior written consent of Manager. 18.03 Binding Effect The terms, provisions, covenants, undertakings, agreements, obligations and conditions of this Agreement shall be binding upon and shall inure to the benefit of the successors in interest and the assigns of the parties hereto with the same effect as if mentioned in each instance where the party hereto is named or referred to, except that no assignment, transfer, sale, pledge, encumbrance, mortgage, lease or sublease by or through Manager or by or through Owner, as the case may be, in violation of the provisions of this Agreement shall vest any rights in the assignee, transferee, purchaser, secured party, mortgagee, pledgee, lessee, sublessee or occupant. 24 x ARTICLE 19 FORCE MAJEURE 19.01 Operation of Project If at any time during the term hereof it becomes necessary in Manager's reasonable opinion to cease operation of the Project in order to protect the Project and /or the health, safety and welfare of the guests, tenants and /or employees of the Project for reasons of force majeure such as, but not limited to, acts of war, insurrection, civil strife and commotion, labor unrest or acts of God, then in such event Manager may close and cease operation of all or part of the Project, reopening and commencing operation when Manager deems that such may be done without jeopardy to the Project, its guests, tenants and employees. Either Owner or Manager may terminate this Agreement upon thirty (30) days written notice if the conditions that caused the interruption of business have not ceased or improved sufficiently after the end of thirty (30) days to permit the operation of the Project in accordance with this Agreement. 19.02 Extension of Time It is further understood and agreed that with respect to any obligation to be performed by a party during the term of this Agreement, such party shall in no event be liable for failure so to do when prevented by any force majeure cause beyond the reasonable control of such party such as strike, lockout, breakdown, accident, order or regulation of or by any governmental authority, failure of supply or inability, by the exercise of reasonable diligence, to obtain supplies, parties or employees necessary to perform such obligation, or war or 25 4 , other emergency. The time within which such obligation shall be performed shall be extended for a period of time equivalent uivalent to P q the delay from such cause. ARTICLE 20 GENERAL PROVISIONS 20.01 Authorization 'Owner represents that it has full power and authority to execute this Agreement and to be bound by and perform the terms hereto. Manager represents it has full power and authority to execute this Agreement and to be bound by and perform the terms hereof. Upon request each party shall furnish the other evidence of such authority. 20.02 Interest Any amount payable to either party which shall not be paid when due shall accrue interest at the rate of ten percent (100) per annum. 20.03 Formalities Any change to or modification of this Agreement must be in writing signed by both parties hereto. This Agreement shall be executed in one or more counterparts, each of which shall be deemed an original. The captions for each Article are intended for convenience only. 20.04 Documents Prior to Opening and throughout the term hereof, Owner shall furnish Manager copies of such documents in- cluding notes and mortgages) relating to the Project and such other documents pertaining to the Project as Manager shall request. 20.05 Consents Whether or not specifically so stated, each matter, act or thing, the doing or providing of which by one party is subject to the approval, consent or discretion of the 26 other party, shall require that such approval, consent or discre- tion not be unreasonably withheld, nor charged for. 20.06 Related Party Purchases Supplies and services may be purchased by Manager from persons with whom Manager is affili- ated or in which Manager has an interest ( "related party purchas- es") provided the cost and' quality thereof are comparable to goods and services available from unrelated third parties, and provided further that such related parties are identified to Owner. IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement effective the day and. year first above written. WITNESS: OWNER: ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER By: Its: By: Its: 19 (Signature Date) WITNESS: MANAGER: EBF MANAGEMENT CO. By: Its: 19 (Signature Date) 0007AGO1.I41 • 27 4 EXHIBIT A Property Description EXHIBIT B Project Management Plan Manager will be responsible for managing a diverse, multi - purpose project as further described in the Earle Brown Farm Program, Exhibit D. The Project will include office space, a multi -use trade show, conference, banquet facility, and a "bed and breakfast" facility. Manager shall perform the services necessary for the profes- sional and competent management of all phases and aspects of the Project. Such services shall include, but not be limited to, the following: 1. Manager shall be responsible for marketing, promoting, and advertising the Project's office spaces, "bed and breakfast" facility, and conference center /banquet facility. 2. In accordance with the terms and conditions set forth by Owner, Manager shall negotiate office leases with prospective tenants of the Project. Leases shall be entered into by Owner and in Owner's name. Manager shall present completed leases to Owner for approval and execution. 3. Manager shall be responsible for relations with tenants at the Project, including the monitoring of tenant activities and monitoring of tenants' compliance with their lease obligations and Project requirements. Manager shall enforce, and revise as appropriate, rules and regulations for the Project. 4. Manager shall provide or enter into contracts to provide necessary services to the Project, including for water, electricity, gas, fuel, telephone, trash removal, snow removal, landscape maintenance, security, janitorial, and other necessary services. 5. Manager shall use its best efforts to obtain a suitable restaurant tenant for the project. Manager shall negotiate a lease with such prospective restaurant tenant pursuant to terms and conditions set forth by Owner. Owner may participate in such negotiations, and in any event, any such restaurant lease shall be in Owner's name and will require approval and execution by Owner. Manager shall administer the restaurant lease on behalf of Owner, assuring that the restaurant lessee provides profes- sional and competent restaurant service to the conference cen- ter/banquet facility and the "bed and breakfast" facility of the project. 6. Manager shall provide for and supervise all services necessary for the professional and competent operation of the "bed and breakfast" facility. Such services shall include booking of reservations, maid service, appropriate guest services, security, breakfast service, collection of guest fees, and any other services required to manage, operate, maintain, and service the ..bed and breakfast �� facility. Manager shall charge and collect room rates as set by Owner. 7. Manager shall provide all services necessary for the professional and competent operation of the conference cen- ter /banquet facility. Manager shall be responsible for schedul- ing events for the conference center /banquet facility and for administering such events as they occur. Manager shall charge and collect such fees for use of the center as set by Owner. 9. Manager shall provide any other services required by the body of this Agreement and any services required for the sound operation of the Project. All expenses incurred and contracts entered into for the provision of services required for the operation of the Project shall be within the limits of the approved Yearly Budgets unless otherwise approved by Owner in writing. EXHIBIT C Member Rich Theis introduced the following resolution and moved its adoption: ' RESOLUTION NO. 83 -172 RESOLUTION AMENDING A CITY PURCIIASING POLICY WHEPEAS, Section 6.05 of the City Charter of the City of"Brooklyn Center does direct the City Council to establish and maintain'a purchasing policy for. h to p y the City of Brooklyn Center. BE IT, THEREFORE, RESOLVED by the City Council of the City of Brooklyn Center that the purchasing'policy of the City of Brooklyn Center shall be as follows: CITY OF BROOKLYN CENTER PURCHASTIIG POLICY PURPOSE It shall be the purpose of the Purchasing Policy of the City of Brooklyn Center to: (1) Assure that all purchases are made in accordance with the laws of the State of Minnesota, the City Charter, and other policies of the City of Brooklyn Center. - (2) Assure that all purchases are charged to the proper account. (3) Assure vendors that the purchase is authorized and that their invoices will be paid promptly. • (4) Assure uniform purchasing procedures within the City's - departments. . (5) Assure the City Council and the City Manager that • adequate controls over the purchasing function are well established and are adhered to. DEFINITIONS For the purposes of establishing procedures for the City of Brooklyn Center, the following definitions shall apply:.* CONTPvACT FOR SERVICT.S : A "contract for services" means an agreement entered into by the City for the use of professional services such as consultants, auditors, legal counsel, and architects. "Contract for services" shall also include an . agreement entered into by the City for insurance coverages. CONTRACT FOR PURCIIAFFS A "contract for purchases" means an agreement entered into by the City for the purchase of supplies, materials, equipment or the rental thereof, or the purchase, construction, alteration, repair or maintenance of real or personal property. f RESOLUTION 110 83 - 172 CONT I'O LIQ UOR STOP. VFPCHANDISF PU 1zCIIASI S : A "contract for 11CIllOY SLGreS TIerCllandls'e Purchases" means an .agreement entered- into by the City for the purchase of merchandise for resale in the city's off -sale liquor stores. PROCEDURES For the purpose of establishing purchasing procedures, "contracts for services" and "contracts for purchases" shall be divided into separate purchasing categories according to the real or estimated cost of the services or purchases. The purchasing categories shall be:- Cate I : $15,000 or more Category II : $5,000 or more, but less than $1.4,999 Category III $2,000 or more, but less than $5,000 Category IV: Less than $2,000 CONTRACT FOR SERVICES procedures by category shall be as follows: Category I, Category II, Category III ($2,000 or more) Contract awarded by the City Council upon recommendation of the City Manager. Category IV : (Less than $2,000) Contract awarded by City Manager. CONTRACT FOR PURCHASES procedures by category shall be as follows: Category I : ($15,000 or more) a. Awarded by City Council upon recommendation of City Manager. b. Contract awarded by City Council upon receipt of sealed bids in accordance with the Uniform Municipal Contracting °Law, M.S.A. Section 471.345. Category II : ($5,000 through $14,999) a. Awarded by City Council upon recommendation of City Manager. b. Contract awarded by City Council in accordance with the Uniform municipal Contracting Law, M.S.A. Section 471.345 upon either: (1) receipt of sealed bids. (2) receipt of two or more written quotations when possible. Category III ($2,000 through $4,999) a. Awarded by City Manager. b. Contract awarded by City Manager upon receipt of two or more written quotations when possible. Categor IV : (Less than a. Awarded by City Alana�ZCr. b. Contract awarded by City Manager upon receipt of two or more written or oral quotations when possible. I✓F:SrjT,UTION NO. 83 - 172 CONTW%CT FOR LIQ STORES ;IF;F?CIIIl;:DIS1: PURCHASES Categories I thro IV (All amounts) a. Awarded by City ;-tanager. b. Contract awarded by City Manager upon receipt of two or more written or oral quotations when possible. COOPERATIVE PURCHASING contracts for purchases or services entered into through joint purchasing agreements with the State of Minnesota, Hennepin County or other governmental agencies for Categories I through IV shall be considered to meet the requirements of the City Purchasing Policy. GENERAL POLICIES 1. The City Manager shall establish written detailed purchasing procedures which are necessary to supplement the City Council's purchasing policy and which are necessary to maintain adequate controls over the purchasing function. 2. Checks shall be issued regularly on the second and fourth Mondays of each month to pay the City's outstanding warrants, or whenever else necessary to guarantee cash discounts, or whenever else deemed necessary by the City Manager. 3. The City Manager shall have the responsibility to expend funds necessary to assure the continued operations of the City's functions in accordance with State laws, City Charter, this �._:. purchasing policy and the City Budget. 4. The City Manager shall keep on file for public inspection, through the Department of Finance, a listing of all cash disbursements made by the City during the current calendar year. November 7, 1983 Date f Mayor r ATTEST: Clerk The motion for`- e adoption of the foregoing resolution was duly seconded by member Celia Scott , and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. M EXHIBIT D EARLE BROWN FARM PROGRAM The hippodrome will be developed as a multipurpose facility. We envision using this facility for banquets, seating as many as 1200 if possible, to a trade show arena. I would estimate the facility would accommodate approximately 100 booths. Other activities contemplated for the hippodrome - would include weddings, dances, musical entertainment, perhaps like the Carlton, .exercise classes, and.so forth. Design of the hippodrome should anticipate dividing the room up to accommodate several smaller groups on given occasions. The stable, which is physically connected to the hippodrome, would encompass kitchen facilities for banquets and quite possibly a restaurant in the main entryway to the stable. The northern most wing would most likely be office space. Most likely, we will have only one tenant for the office space in the stable. The loft areas of the stable would function as storage space for the hippodrome. The G and H barns located to the north end of the project would be office space. We anticipate the design would connect the two buildings, but that would be subject to tenant needs and the architects review and suggestions. Orientation of the G and H buildings could be changed to accommodate design needs. The housing complex which includes the main house, the farm house, and the guest house will be developed as a "bed and breakfast" facility. Special attention to this will be of primary concern to the Brooklyn Historical Society. Consideration should be given to incorporation historical artifacts and possibly the restoration of a room to be roped off from the public. Note, the design of the "bed and breakfast" must take priority, however. The D barn will function as an office building dependent upon certain budget considerations. The blacksmith's shop, located outside of the property, would be moved onto the site and used as a senior drop -in center, budget allowing. If not, the D barn would function as an artist's loft and senior drop -in center. The bunk house will be used in conjunction with the "bed and breakfast" or the senior drop -in center. Along with the cooks shed and the pump house (water tower), uses of the buildings should be supportive of the other uses as determined in the design phase. For example, the cook's shed could provide storage space etc. I have presented you with a broad outline of intended uses for the buildings on the farm. Obviously, as we start the design process and tenants are identified some modifications can be anticipated; however, I do not foresee any significant changes in this program. It would be our preference to complete this project in a single phase. MATER BLACKSMITY i • •.. �� SHOP B HOUSE O FARM n �__ _..� HOUSE 6A MAIN HOUSE GUEST GE HOUSE D BARN O STABLE HIPPODROME Cq t I COOK'S I CITY OF BROOKLYN CENTER council Meetin Date 7-11-88 Agenda Item Number 7 6 REQUEST FOR COUNCIL CONSIDERATION • ITEM DESCRIPTION: Resolution Approving One (1) Brooklyn Center Economic Development Authority Grant (File No. H64) DEPT. APPROVAL: c Sig afure - title MANAGER'S REVIEW /RECOMMENDATION: No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached yes ) I have received one (1) application for a rehabilitation grant (file no. H64). Attached is the application and recommendations for work to be performed on the home. I recommend approval by the EDA. • This 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. H64) • UHC /783• URBAN HENNEPIN COUNTY HOUSING REHABILITATION GRANT PROGRAM HOMEOWNER APPLICATION FOR GRANT HOUSEHOLD INFORMATION -- Please Print N First Name ame SE LLAR S, CH ARLES - v of Spouse SHIRLEY Address 1703 - 59th Avenue North Home Phone 5 61 -1261 City Brooklyn Center Zip Code 55423 Work Phone n/A City of residence if other than mailing address Marital Status (check one) XX married, single, divorced, separated, widowed Race (check one) __ White, Black, American Indian /Native Alaskan, Hispanic, Asian or Pacific Islander The information concerning Minority Group Categories is requested for statistical purposes only so that Hennepin County may determine the degree to which its programs are utilized by Minority households. INCOME INFORMATION "Income" means any amount received from the following sources by a Resident. * Any public assistance * Salaries, including commissions, tips, * VA educational grants bonuses, and overtime pay * Estate or trust income * Rental income * Gains from the sale of * Business profit for self - employed, property or securities including farmers and child care, etc. x Pensions and annuities, * Payments received from property being including social security sold on contract for deed and * A * income received by the Alimony and/or child support household * Interest and dividends List all the residents of your household. Include yourself. Include their ages and their incomes, if any. "RESIDENT" means any person, other than a renter, living in the household for at least nine (9) months of the year, or a person who is claimed as a dependent for income tax purposes. Total number of residents in the household 3 OFFICE USE ONLY income of in household names of ages of residents residents resident per month source of income verified incomes Charles 58 S 0 None* S Shirley 59 S 0 None S Kelly 17 S 0 None S $ S NOTE: Charles h applie for dis ability. Determinatior S on surgery to be made by VA on April 6 or ; a he advised of wh he I$ as total o r partial disabilit S _Shirley has been injured :S a auto a ccident and is curr tIV unable to work. Total Income S Per month = S per year S Didn't make enough to file in 8TJ� 7 due to gallbladder income far mend surgery and neck trouble (9 months). No income for 1988 S to date. income per year r ASSET INFORMATICH _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 I. CASH on hand... ....... ..............................S 87.00 S 2. CASH in checking accounts......... 3. CASH in savings accounts (including those held .. ..S 0 in trust) S 4. Cash value of Securities or U.S. Savings bonds ...... S 0 S S. Redemption value of life insurance Policies ......... S 0 S 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 ... $ 0 S 7. Other personal property (excluding household furnishings, clothing and one personal vehicle) ..... $ 0 $ TOTAL ASSETS.... PROPERTY INFORMATION Provide the following information about the property to be improved with this grant. I. Is your property: X single family house; a duplex 2. How many years have you lived in the house? 26 3. What is the approximate age of the house? 41 4. Do you have any outstanding mortgages on the house? Yes; X No If yes, with whom? Amount S 5. Do you have any outstanding Contract for Deed on the house? Yes; X No If yes, with whom? Amount S 6. Have you ever received a Housing Rehabilitation Grant before? Yes; X No If yes, what type? Amount S Urban Hennepin County or an authorized representative shall have the right to inspect the property to be improved at any time from the date of the Grant upon giving due notice to the occupant(s). Any person who makes a false statement or misrepresentation in connection with the appli- cation for or use of Urban Hennepin County Grant funds shall be subject to a fine or imprisonment, or both, under the provisions of the Minnesota Criminal Code, and /or may be required to return all or part of the Grant Funds to Urban Hennepin County. I, the undersigned, certify subject to penalty under law that the above information is true and correct to the best of my knowledge and belief, and that the provisions stated are accepted and agreed to. applic s�gnacure l/ � a o � p ication Note: All names and financial information provided on this application are considered private data on individuals and are subject to privacy of information provisions, pursuant to State Statute. URBAN HENNEPIN COUNTY HOUSING REHABILITATION GRANT PROGRAM PROPERTY INSPECTION REPORT APPLICANT x64 INSPECTION Name Charles Sel Staff Address 1703 - 59th Avenue North Date Brooklyn Center, MN 55430 Time Phone 561 -1261 Inspector Building Age: Garage: NOTICE TO CONTRACTORS (1) All successful bidders awarded a contract to perform H.R.A. Grant work in the City of Brooklyn Center shall acquire permits for each specific phase of work to be completed i.e. Building, Plumbing, Heating and Electrical). These permits shall be a "No Charge" permit with the exception of the State surcharge fee. (2) Contractors are also advised to refer to the Table of Contents for easy reference of work to be accomplished with the grant. Example: Part 1 EX -1 would indicate an item to be bid on the grant. Refer to Page 1 for complete details of Item 1. (3) Attach bid proposal to each set of work proposal forms. (4) Contractor keep one set of work proposal forms and Table of Contents for your record and return one completed set and bid proposal to: Metro HRA Attention 300 Metro Square Building St. Paul, MN 55101 Phone 291 -6596 Y 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 ❑ 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 0 8 ❑ 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 ❑ MECHANICAL $ 4 Enclosed Space Ventilation, Replace Furnace Thermostat, Chimney, Registers, Ductwork 11 Q 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- f TABLE OF CONTENTS �RT PAGE 12 x-1 CEILINGS $ 8 Repair of 13 ❑ WALLS: $ 8 Repair of 13 Ceiling and Wall Performance and Material Specifications for 9 -1C 14 FINISH FLOORS: $ 10 -11 Replacement of, Performance and Material Specifications for 15 © EXTERIOR DOORS: $ 11 Repair - Refinish of, Weather Sealing, and Replacement of, Performance Specification for 16 ❑ EXTERIOR STORM DOORS: $ 11 Repair - Rep acement of, Material Specification for 17 INTERIOR DOORS $ 12 Repair - Replacement of, Performance and Material Specifications for 18 Q EXTERIOR STORM AND SCREEN WINDOWS $ 13 Repair - Replacement of, Material Specification for i 19 ❑ HOUSE WINDOWS $ 13 -14 Repair - Refinish of, Weather Sealing of, Replacement of, Material and Performance Specification for 20 ❑ INSULATION: $ 14 -15 Attic, Wall, Foundation, Rim Joist Installation, Material and Performance Specification for, Code Requirement 21 ❑ VENTILATION: $ 15 Provision of Attic, Kitchen, Bathroom, Repair of, Material and Performance Specification for 22 ® EXTERIOR SIDING: $ 16 Installation, Repair or Replacement of, Soffit and Facia, Window, Door and Cornice Trim, Material and Performance Specification for 23 ❑ EXTERIOR PAINTING: $ 17 Material and Performance Specification for 24 [] GUTTERS AND DOWNSPOUTS: $ 17 Provision for and Replacement of, Material and Performance Specification for ❑ ROOFING: $ 18 Repair - Replacement - Removal of, Material and Performance Specification for -2- i TABLE OF CONTENTS PART PAGE 26 CHIMNEY Repair - Reline - Replacement of $ 5 -19 27 KITCHEN & BATHROOM CABINETS $ 19 28 ❑x SMOKE DETECTORS Installation of $ 20 29 GRADING Material and Placement Specification for, Seeding and $ 20 Sodding of 30 EXTERIOR CONCRETE WORK Replacement - Repair of, Sidewalks, Garage Apron, Etc. $ 20 31 ❑ MISCELLANEOUS: $ 20 TOTAL $ Contractor Name: Address: City State Phone: Home Work Homeowner Name: Address: Phone: H# Contractor Signature Date -3- 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" minimum below grade. ❑ Addition: 3. REPAIR FOUNDATION: All joints shall be completely filled with mortar. Tuck pointing shall be done only after the joints have been raked out to a minimum depth of 112" and wetted. Addition: 4. CRAWL SPACE: R 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: i 5. BASEMENT FLOOR: [1 Patch holes and large cracks. Addition: I -2- e 6. POST AND BEAM ❑ 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 rooms GFI bathroom ❑x with ❑ without ground fault. ❑ laundry room Q Addition: Install owner's fixture at bottom of basement stairs. 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- t ❑ Replace gas valve with approved lever handle gas valve or ball valve ❑ Replace vent connector from furnace to chimney with 26 gauge galv. 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. ❑x Add warm air register in Bathroom, upper floor ❑x Add return air register in upper floor ❑ Add Duct work to provide heat to basement ❑ Addition: ALL MECHANICAL WORK SHALL BE IN COMPLIANCE WITH STATE MECHANICAL CODES. 11. PLUMBING ❑ Install new 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. Q Install cold water shut off valve on existing water heater. Install approved gas valve on existing water heater. -5- PLUMBING continued ❑ Install temp., pressure, relief valve on existing water heater. (pipe existing TPR valve to floor) C 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. Q Rout out main house sewer and clear stoppage. Q Repair or rep inoperable water softener. QI Install new kitchen sink vented to outside air. C 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. ❑ Y PP Y ❑ Install new bathroom lavatory trap. Q Install new bathroom water closet complete with seat and shut off valve. ❑ Install new water closet setting seal gasket. ❑ Install new bathtub vented to outside air. Q Install new bathtub waste trap. ❑ Install new bathtub wall enclosure and shower curtain rod. Qx Install new laundry tub vented to outside air. Q Install new laundry tub waste trap. Q Floor Drain Q Inoperable ❑ Install 'J Other Replace all accessible water pipes with copper - -size proper Repair waste /vent at laundry tub -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. ❑ 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. ❑ 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. ❑ 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. 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: 0 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. ❑ Addition: -7- PLUMBING continued ❑ Provide Septic Sewage System - System shall be specified in the bid and include drawi ng. Installation shall 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. ❑ Addition: ALL PLUMBING WORK SHALL BE IN COMPLIANCE WITH THE STATE PLUMBING CODE 12. CEILINGS (See General Specification) ❑ Repair Ceiling in ❑ Kitchen ❑ Dining room El Livingroom ❑ Bathroom ❑ Bedroom ❑ Bedroom [] Bedroom ❑ Bedroom ❑ Basement ❑ Basement ❑ Closet h Replace ceiling tile in all areas of basement. 13. WALLS (See General Specification) Repair Wall in ❑ Kitchen 0 Dining room ❑ Livingroom ❑ Bathroom [] Bedroom ❑ Bedroom ❑ Bedroom ❑ Bedroom ❑ Basement ❑ Closet of -8- WALLS continued ❑ Wall and Ceiling Repair General Specification: I. 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 wilding 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. WALLS continued 8. 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. g. 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 1/2 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: 14. FINISH FLOORING Replace Floor Covering in ❑ Kitchen j Diningroom ❑ Livingroom Bathroom ❑ Bedroom ❑ Bedroom ❑ Bedroom [] Bedroom ❑ Basement [j 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 sheed vinyl or vinyl asbestos tile minimum thickness 1/16 ". Tile shall be medium quality and laid inexact 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 Repair and Refinish: ❑ Front Door ❑ Rear Door [❑ Side Door ❑ Garage Door u Weather Seal: ❑ Front Door ❑ Rear Door ❑ Front Storm Door ❑ Rear Storm Door Lx Replace: ❑ Front Door 17x Rear Door El 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 ❑ Repair: ❑ Front Storm Door ❑ Side Storm Door ❑x 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- 17. INTERIOR DOORS xI Repair Door to: ❑ Basement ❑ Bathroom ❑ Bedroom X❑ north front Bedroom ❑ Bedroom ❑ Bedroom 71 Closet in north front bed room, hall closet Replace Door To: Basement ❑ Bathroom u Bedroom ❑ Bedroom ❑ Bedroom F - 1 Bedroom ❑ 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 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 x Replace C Basement [x] Kitchen x' Diningroom Z Livingroom a Bathroom LE front Bedroom 7 rear Bedroom ❑ upper Bedroom ❑ Bedroom Storm windows shall be aluminum combinations of medium ualit q unless otherwise Y, u specified in the Scope of Improvements. 19. HOUSE WINDOWS Q Repair and Refinish Windows in: ❑ Basement ❑ Kitchen ❑ Diningroom ❑ Livingroom ❑ Bathroom ❑ Bedroom C) 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 Q 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- SEE BELOW Replace Window in: Kitchen ❑ Diningroom ❑ Livingroom 17 Bathroom ❑ Bedroom ❑ Bedroom Ci' 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. ❑ A positive locking device shall be installed on all windows. L 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. ❑ When a bedroom window unit is replaced, the new unit shall be sized to meet the requirements of the State Building Codes. E] Addition: Install replacement sash in all first floor windows, submit specs with bid 20. INSULATION ❑ 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. Ins _ Insulate exterior for 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. 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 ❑ Insulate accessible area rim joist to a minimum of R -19 with vapor barrier facing warm side. ❑ Addition: 21. VENTILATIutd ❑ 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 71 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. 7 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. 1 Cover all window, door trim and sills with baked enamel aluminum, minimum .019 gauge. Color selection by owner. 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 Ln full sections. Caulk joints. Staples shall not be used for installation. Q x Addition: Cover garage trim, cover gable on front of house -16- 23. PAINTING �i 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. 24. 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. 0 Addition Remove and reinstall existing g provide d as necessary with 6' extension at g round level -17- L 25. ROOFING Pro ❑ vide new roof per City of Brooklyn Center Handout a a Y and s 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 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 e f asphalt Y p 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- e 26. CHIMEY ❑ 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. _j 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 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 11 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- i i 28. SMOKE DETECTORS u Install UL listed battery - operated smoke detector per manufacturer's instructions without escape light complete with working batteries. Main floor and upstairs (2) 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 - 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 E] Replace crumbled or broken sidewalks. [� Replace crumbled or broken garage entrance apron. I 31. MISCELLANEOUS 1. Remove space heater on 2nd floor and patch h to ma e finish, inside and outside 2. Install opener on overhead d oor in garage I/b Member introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANT (FILE NO H64) 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. H64) from an eligible individual 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 $8,250. 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. H64) as recommended by the staff. 2. That the work be performed as recommended in the request for council consideration form dated July 11, 1988, and that the applicant be directed to obtain the necessary bids for staff review and approval. 3. The project shall not exceed the grant limit of $8,250 per house. Date President The motion for the adoption of the foregoing resolution was duly seconded by member , 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 MEMORANDUM TO: Gerald G. Splinter, City Manager , FROM: Brad Hoffman, EDA Coordinator 7 DATE: July 7, 1988 SUBJECT: Rehab Grant Amendment Recently, the Urban County (Hennepin) CDBG members amended program guidelines for home rehab grants. One of the changes was in the maximum grant ($8,250) allowed under the program. It was changed to $10,000 in recognition that it has not been changed in over seven years. Our experience is that the number of bids coming in for grant work increasingly exceeds our current dollar figure. For the most part, that is a reflection of the increased costs of labor and material in the industry. I would recommend that the EDA approve the program change to $10,000 and for consistency sake, it be made applicable to all current and future grant recipients. Member introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AMENDING THE BROOKLYN CENTER HOME REHABILITATION GRANT PROGRAM GUIDELINES WHEREAS, the Brooklyn Center EDA under its HRA powers established a housing rehabilitation grant program in 1979; and WHEREAS, the maximum grant amount was established at $8,250 seven (7) years ago; and WHEREAS, Hennepin County and the Department of Housing and Urban Development have established a new maximum grant amount of $10,000; and WHEREAS, bids being received under the current guidelines for home grant rehabilitation work are increasingly exceeding the current maximum grant level of $8,250. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that the maximum grant level be raised to $10,000 from its current $8,250 level. Date President The motion for the adoption of the foregoing resolution was duly seconded by member , 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.