HomeMy WebLinkAboutHRA MISC PAPERS2
• 1
TI'
P
ACS FINANCIAL SYSTEM
ST. ANTHONY VILLAGE
•12/22/2004
BANK
13: Check Register
GL540R-V06.60
PAGE 1
VENDOR
CHECK# DATE
AMOUNT
HRA1 HOUSING 6 REDEV CHECKING
•.00002
A.J. SPANJERS CO INC
5719 12/28/04
269.25
.00001
ANDERSON'S FURNITURE
5720 12/28/04
399.27
008667
DARLGREH, SHARDLOW AND U
5721 12/28/04
1,472.30
000820
DORSEY 6 WHITNEY
5722 12/28/04
11,920.20
008698
ENTERS 6 ASSOCIATES, INC
5723 12/28/04
9,165.00
009014
M. REINERT DRYWALL, INC.
5724 12/28/04
1,870.00
002125
MALENICK/JOHN
5725 12/28/04
396.17
000045
OFFICE DEPOT
5726 12/28/04
409.15
009089
PAREOS CONSTRUCTION COMP
5727 12/28/04
105.00
.00003
SILVER OAKS DEVELOPME`2T
5728 12/28/04
20,000.00
008273
WSH 6 ASSOCIATES, INC.
5729 12/28/04
1,302.00
HOUSING 6. REDEV CHECKING
_
47,308.34 •••
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TI'
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Housing and Redevelopment Authority Meeting Minutes
May 13, 2003
• Page 2
1 Mr. Prosser stated the resolution for discussion tonight would allow Ehlers to go out for bid on
2 the lease revenue bonds for the public works facilities and fire station.
3
4 Commissioner Faust asked if an amount was needed for this resolution. Mr. Prosser stated this
5 was the case.
7 Motion by Faust to adopt H.R.A. Resolution 03-007, re: Lease Purchase Revenue Bonds for the
8 Public Facilities Upgrade in the amount of $5,529,000 and to have a report from Ehlers &
9 Associates on May 28, 2003.
10
11 Discussion:
12 Commissioner Sparks asked if the costs were reduced if the amount could be paid down from the
13 sale of the fire station. Mr. Gilligan stated this could be paid down to reduce the resident's
14 expense over the 20 years. Mr. Prosser indicated it would be as if the Council expended less. He
15 noted the HRA would not be able to expend more than needed as required through these bonds.
16
17 Chair Hodson noted after hearing discussions tonight from the public, he is more inclined to go
18 towards the task forces recommendation of the $6.2 million with the 4' bay and additional
19 community space at the fire station; and the additional storage space at the public works
20 building. He noted he does not want to see comers cut with these facilities but appreciates the
41
need to keep costs down. Chair Hodson noted this decision has been delayed for 20 years and
needs action. He stated the $5.5 million is less than the $6.2 million and indicated he hopes the
23
costs come in less than predicted by the task force. Chair Hodson indicated he would overlook
24
this whole project to keep costs low for the residents.
25
26
Commissioner Horst noted there may be other funding options available as previously explained
27
by Mr. Morrison. Mr. Momson stated there could be some monies available from the water
28
filtration bids and stated the Kenzie Development would positively affect the tax base for all
29
residents.
30
31
Commissioner Faust stated if there was sentiment for $6.2 million he would agree to an
32
amendment to his motion. Commissioner Horst stated he felt the $5.5 was adequate for this
33
time.
34
35
Mr. Prosser pointed out that bonds can only be issued in $5,000 increments, which would need
36
to be stated within the motion.
37
38
A friendly amendment was made to the motion by Commissioner Horst to have the bonding
39
amount be $5,530,000.
40
41
Motion carried unanimously.
42
0
IV.
STAFF REPORTS.
45
None.
• PURCHASE AGREEMENT
1. PARTIES. This Purchase Agreement is made on Apri 1 27 1999 , by and
between GREGORY F. STEINER, an unmarried person, ("Seller") and
HOUSING AND REDEVELOPMENT AUTHORITY OF ST. ANTHONY, MINNESOTA, a . .
public body corporate and politic ("Buyer').
2. OFFERIACCEPTANCE. Buyer offers to purchase, and Seller agrees to sell the real
property legally described as: See Exhibit A attached hereto
Hennepin County, Minnesota, located at 2542 Kenzie Terrace in the City of
St. Anthony, Minnesota ("Property"):
3. PRICE AND TERMS. The price for the Property included in this sale is
Ninety-four Thousand and No Cents Dollars ($94 0("Purchase Price")
which Buyers shall pay as follows:
(A) Earnest money of ! 1C0. OOreceipt of which is hereby acknowledged;
(B) $94,000.00 by certified check or wire transfer on or before June 30 , 199L
the "Date of Closing";
4.13EEDIMARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and
• deliver to Buyer (i) a Warranty Deed, joined in by spouse, if any, conveying marketable
title to Buyer, subject only to: (A) building and zoning laws, ordinances, state and federal
regulations; (B) restrictions relating to use or improvement of the property without
effective forfeiture provisions; and (C) reservation of any mineral rights by the State of
Minnesota; (ii) Internal Revenue Form 1099; (iii) A Certificate signed by Seller warranting
that there are no "Wells" on the Property within the meaning of Minn. Stat. § 103I or if
there are "Wells", a Well Certificate in the form required by law; (iv) an affidavit stating
that there are no bankruptcies, divorces, federal or state tax liens or judgments affecting
the property; that there are no unrecorded interests affecting or parties in possession of the
Property, and stating that no work has been performed or materials provided to the
Property within the last 120 days for which payment has not been made; and (v) all other
documents reasonably determined by Buyer to be necessary to transfer the Property to
Buyer free and clear of all encumbrances.
5. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and
payable in and for the year of closing shall be prorated to the Date of Closing.
SELLER SHALL PAY on Date of Closing all installments of special assessments certified
for payment with the real estate taxes due and payable in the year of closing..
SELLER SHALL PAY ON DATE OF CLOSING all other special assessments levied as of the
date of this agreement.
SELLER SHALL PAY special assessments pending as of the date of this agreement for
improvements that have been ordered by the City Council or other governmental
• assessing authorities.
SELLER SHALL PAY on the Date of Closing any deferred real estate taxes or special
assessments payment of which is required as a result of the closing of this sale.
Buyer shall pay real estate taxes due and payable in the year following closing and
thereafter and any unpaid special assessments payable therewith and thereafter, the
• payment of which is not otherwise provided herein. Seller makes no representation
concerning the amount of future real estate taxes or of future special assessments.
6. DAMAGES TO REAL PROPERTY. If the real property is damaged prior to closing,
this Agreement shall NOT terminate and Seller and Buyer shall proceed to close this
transaction in accordance with the terms hereof.
7. POSSESSION. Seller shall deliver possession of the Property not later than the Date
of Closing. All interest, fuel oil, liquid petroleum gas, and all charges for city water, city
sewer, electricity, and natural gas shall be prorated between the parties as of Date of
Closing.
8. EXAMINATION OF TITLE. Within a reasonable time after acceptance of this
Agreement Seller shall furnish Buyer with either a Registered Property Abstract or an
Abstract of Title certified to a date within 30 days of the date of delivery, which includes
proper searches covering bankruptcies and State and Federal judgements, liens, and
levied and pending special assessments. Buyer shall have ten (10) business days after
receipt of the Registered Property Abstract or Abstract of Title to have either Buyer's
attorney examine the title and provide Seller with written objections or, at Buyer's own
expense, to make an application for a Commitment for Owner's Title Insurance Policy
("Commitment") and notify Seller of such application. Buyer shall have ten (10) business
days after receipt of the Commitment to provide Seller with a copy of the Commitment
• and Buyer's written objections. Buyer shall be deemed to have waived any title objections
not made within the applicable ten (10) day period, except that this shall not operate as a
Waiver of Seller's covenant to deliver a statutory Warranty Deed.
9. TITLE CORRECTIONS AND REMEDIES. Seller shall have 60 days from receipt of
Buyer's written title objections to make title marketable. Liens or encumbrances -for
liquidated amounts which can be released by payment or escrow from proceeds of closing
shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and
prompt. Pending correction of title, all payments required herein and the closing shall be
postponed.
A. If notice is given and Seller makes title marketable, then upon presentation
to Buyer of documentation establishing that title has been made marketable,.
and if not objected to in the same time and manner as the original title
objections, the closing shall take place within ten (10) business days or on the
scheduled closing date, whichever is later.
B. Seller proceeds in good faith to make title marketable but the 60 day period
expires without title being made marketable, Buyer may declare this
Agreement null and void by notice to Seller, neither party shall be liable for
damages hereunder to the other, and earnest money shall be refunded to
Buyers.
• C. If the 60 day period expires without title being made marketable due to
Seller's failure to proceed in food faith, Buyer may:
-2-
• 1. Proceed to dosing without waiver or merger in the deed of the
objections to title and without waiver of any remedies, and may:
(a) seek damages, costs and reasonable attorney's fees from Seller as
permitted by lain; or
(b) undertake proceedings to correct the objections to title.
2. Rescind this Purchase Agreement by notice as provided herein, in
which case the Purchase Agreement shall be null and void and all
earnest money paid hereunder shall be refunded to Buyers;
3. Seek damages from Seller.
D. If title is marketable, or is made marketable as provided herein, and Buyer
defaults in any of the agreements herein, Seller may, as its sole remedy,
cancel this contract as provided by statute and retain all payments made
hereunder as liquidated damages.
E. If title is marketable, or is made marketable as provided herein, and Seller
defaults in any of the agreements herein, Buyers may, as permitted by law
• 1. Seek damages from Seller including costs and reasonable attorney's
fees;
Ll
2. Seek specific performance within six months after such right of action
arises.
10. TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT.
11. CONTINGENCIES. This Agreement and Buyer's obligations hereunder are
contingent upon Buyer.receiving all necessary approvals for the purchase of the Property
following all required administrative notices and hearings. If any required approval is
not received by Buyer, this Agreement shall be null and void, neither party shall have any
further liability hereunder and all earnest money, shall be returned to Buyer.
12. SELLER'S WARRANTIES AND REPRESENTATIONS. Seller warrants that (i)
there is a right of access to the real property from a public right of way, (ii) there has
been no labor or material furnished to the property for which payment has not been
made, (iii) there are no present violations of any restrictions relating to the use or
improvement of the property, and (iv) Seller knows of no hazardous substances or
petroleum products having been placed, stored, or released from or on the property by
any person in violation of any law, nor of any underground storage tanks having been
located on the property at any time, except as follows:
-3-
0
•
L
These warranties shall survive the delivery of the deed. Seller shall remove all debris
and all personal property not included in this sale from the property before possession
date. Buyer shall have the right to have inspections of the property conducted prior to
closing.
13. COSTS. Seller will pay all costs of updating the Abstract of Title, issuing a
Registered Property Abstract or issuing a Commitment for an Owner's Title Insurance
Policy. Buyer will pay all premiums required for the issuance of any Title Policy. Seller
and Buyer will each pay one-half of any dosing fee or charge imposed by any closing agent
or by the title company. Seller shall pay all State Deed Tax payable in connection with this
transaction.
14. WELLS AND SEPTIC SYSTEM. Seller certifies and warrants that the Seller does
not know of any "Wells" on the Property within the meaning of Minn. Stat. § 103I. Seller
certifies that there is no individual sewage system on or serving the Property.
SELLER
BUYER HOUSING AND REDEVELOPMENT
AUTHORITY OF S�jNY, MINNESOTA
B
XW�.
Its Chair
By ��-
Its Executive Director
C!
6
C= TY (DIF S T. ANTHONY
HOU S 2 N G AND REDEVELOPMENT
AUTHOR = TY AGENDA
C= TY C OUN C= L C HAMB E R S
A. Call to Order.
B. Roll Call
C. Approval of January 24, 1989 H.R.A. Minutes.
D. Claims.
1. Dorsey & Whitney - $9,688.75.
E. Proposed Development Account for Signage at St. Anthony
Shopping Center.
F. Adjournment.
- THE ARKELL
DEVELOPMENT
\ CORPORATION
December 14, 1984
St. Anthony HRA
3310 Silver Lake Road
St. Anthony MN 55418
Re: Extension of time for progressing with Phases II and III
Dear Members
According to provisions of our Redevelopment Agreement
for the Kenzie Terrace area, we are scheduled to advise you
to proceed with the acquisition of the property for
Phases II and III by December 31, 1984.
The plan as presently approved calls for a combination of
202 rental housing and general market -rate condominiums for
this site. The rental portion through Walker is progressing
and the existing plan for acquisition should be maintaified
for that portion.
We hereby request a twelve month extension of time to
notify the HRA to proceed with any further acquisition of
Phase II or III property for three primary reasons. First,
we have all heard or experienced the difficulty in obtaining
financing for seniors condominiums and have learned that
financing for market rate condos is even more difficult,
if not virtually impossible at this time. This is directly
related to general market conditions in the condominium and
housing industry. Second, the City of St. Anthony's
exposure has been kept to a minimum through the acquisition
and sale of Phase I property and we suggest now is not
an appropriate time to change that position. Finally, we
feel it appropriate to have Phase I 80-858 sold out prior to
commencing marketing on other condo units.
As a result, we are asking for the additional flexibility to
determine a time during calendar 1985 to advise you to
proceed with acquiring the balance of the property.
Ver ruly
ep e urick
xecutive Vice President
cc: Daniel Engelsma
121 East Seventh Street • Saint Paul, Minnesota 55101
(612) 293-0910
•
•
CITY OF ST. ANTHONY
REQUEST FOR H%R.A. ACTION
-----------------------------------------------
ate Submitted
June 3, 1982
Date Action Requested
June 8, 1982
/pe Ot Action Requested
_ Resolution
_ Ordinance
X Formal Action/Motion
Other
TO: Mayor and Councilmen
FROM: David M. Childs, Executive Director
-------------------------------------
r
H.R.A. Meeting_
Title Selection of Re-
development Management
Consultant
SUMMARY DISCUSSION OF SUBJECT: Attached is a questionnaire submitted to the
three firms proposing redevelopment management services for the Kenzie Terrace
Project. We received three responses, however, the responses from Westwood were
received about 1/2 a day late. (They stated they didn't realize there was a dead-
line.) I am reviewing all three responses as well as the original proposals
and will have a memo with recommendations ready for the H.R.A. meeting. Please
read the responses and begin formulating your final choices so that a decision
can be made' shortly. Because of a change in State law, it is important that a
tax increment district be set up by June 30th.
FISCAL IMPACT:
ALTERNATIVES:
RECOMMENDATION: Review and recommendations will be completed on Tuesday.
CITY MANAGER'S REVIEW: COMMENTS:
Ea 1, c ha &5
0
ADMINISTRATIVE OFFICES • 3301 SILVER LAKE ROAD* MINNEAPOLIS, MINNESOTA 55418 • PHONE 789-8881
CITY OF
ST. anTHong
May 24, 1982
TO: Westwood Planning & Engineering
Northwest Associated Consultants, Inc.
Holmes and Graven
FROM: David M. Childs, City Manager
SUBJECT: Follow -Up Questions Regarding Kenzie Terrace Redevelopment
%Management Services Proposals
---------------------------------------------------------------------
The St. Anthony City Council and staff have received and reviewed
•
your individual proposals for redevelopment management services and
have met informally with you to discuss the project with your principal
staff.
The proposals were all excellent and the Council was favorably
impressed with all three applicants. We found, however, that each
firm approaches the project from varying philosophical and operational
viewpoints. The oral interview allowed the Council to learn more
about your individual differences and begin to formulate their
initial opinions regarding their own preferences for the firm to be
selected.
Certain factors in the selection process should be based on a com-
parison of "apples and apples", however, and some items in your
written proposals cannot be compared without some clarification.
I have attached a brief questionnaire as a final phase of the selection
process. Please return your response to me by noon, Thursday, June 3,
1982, and don't hesitate to call if you have any questions.
Some of the items may be addressed in your proposal but none of these
items were addressed in all proposals, therefore, we request that
all applicants respond to all questions. Please note that although
many of the questions have financial implications, the biggest factor
in selecting a consultant is not the fee structure. It just happens
40
that the most clarification is needed in this area.
KENZIE TERRACE MANAGEMENT SERVICES QUESTIONNAIRE
(1) Please indicate the name and title of the principal person (lead
person or major contact) to be assigned to this project. What
percentage of.his or her time do you expect will be spent on
this project on the average?
(2) (a) Who will be responsible for handling relocation activities?
Is the cost included in the fees as presented?
(b) Who will be responsible for handling acquisition activities?
Is the cost included in the fees as presented?
(c) Who will be responsible for handling appraisals?
Is the cost included in the fees as presented?
(d) Who will be responsible for handling preparation of contracts?
Is the cost included in the fees as presented?
(e) Who will be responsible for handling matters connected with
the bond sale?
Is the cost included in the fees as presented?
(f) Who will be responsible for handling legal work?
• Is the cost included in the fees as presented?
•
(g) Who will be responsible for handling construction management?
Is the cost included in the fees as presented? \
(h) Who will be responsible for handling land surveys?
Is the cost included in the fees as presented?
(3) Briefly describe the methodology you will use to locate an
interested/qualified developer/developers.
(4) Please describe how the Tax Increment District will be formed
(who will do it and are the costs included in your proposal?).
(5) Please describe how condemnation activities (if necessary) will
be handled and how costs are addressed.
(6) Add any additional comments which you feel pertinent.
•
-
�# WESTWOOD PLANNING & ENGINEERING COMPANY
June 2, 1982
Mr. David M. Childs
City Manager
City of St. Anthony
3303 Silver Lake Road
Minneapolis, MN 55418
Subj: Follow-up Questions Regarding Kenzie Terrace
Redevelopment Management Services Proposal
Dear Mr. Childs:
Relative to your memo of May 24, 1982, in which you requested
that Westwood Planning & Engineering answer a brief question-
naire as part of the final phase of the selection process for
a management consultant. We are pleased to provide you with
the following:
1. Name and title of the principal person (lead person or
major contact) to be assigned to this project...
. Mr. Richard C. Krier, Vice President of Planning, Westwood
Planning & Engineering Company. I would expect to spend
the following amount of time to implement the entire Kenzie
Terrace proposal; time would be proportionately less in
implementing the north area proposal only (see proposal,
page 29):
Management Operations Plan - 5n hours
Marketing, including strategy, developer selection, criteria,
marketing, assistance to the HRA, developer's agreement
negotiations - 150 hours
Implementation, including overall management, appraisals,
relocation, soil, title opinion, survey and property acqui-
sition as well as general assistance to the HRA - 500 hours
I would expect to accomplish the above tasks over a period
of two to three years. Ms. Doris Sullivan and technician will
be responsible for support services.
2. Who will be responsible for handling relocation activities...
Mr. William Von Klug; the cost is included in fees as pre-
sented.
a• Who will be responsible for handling acquisition activities...
Mr. Richard Krier, assisted in closings by Ms. Doris Sullivan;
• the cost is included in fees as presented.
7415 WAYZATA BOULEVARO. MINNEAPOLIS. MINNESOTA 55426 (8121 5160155
1. %
• Mr. David M. Childs
June 2, 1982
Page 2
h. Who will be responsible for handling appraisals...
Mr. Richard Krier will manage the appraisal process; the
appraisals will be completed by Mr. John Janski and review
appraisals by Mr. Donald Hennesey; the cost is included in
the fees as presented.
c. Who will be responsible for handling preparation of contracts...
Mr. Richard Krier will negotiate all contracts for review
by the city attorney, or other attorney of your choice. He
will represent all contracts with the HRA and be responsible
for their management; the cost is included in the fees as
presented.
d. Who will be responsible for handling matters connected with
bond sale...
Mr. Richard Krier will be responsible for all cash flow, in
conjunction with a bond consultant of your choice and he
will arrange all preliminary information. Your bond attorney
will be responsible for providing a legal opinion relative
• to the bond sale; the cost for Mr. Krier's fees is included
in the proposal; bond consultant's fees are payable only
upon sale of the bonds; bond attorney's fees (city attorney
or other attorney of your choice) are payable upon the ren-
dering an opinion on the bonds. This, of course, is assuming_
that a bond sale takes place. There are several ways of
handling tax increment financing without doing a bond sale.
To include a bond sale at this time, is premature.
e. Who will be responsible for handling legal work...
All legal work, which I expect to be limited, will be han-
dled by the city attorney or an attorney of your choice, who
will be working closely with the program manager, Mr. Krier,
and the city manager.
f. Who will be responsible for handling construction management...
If construction management is to be handled, Mr. Dennis Marhula,
of Westwood Planning & Engineering will be project manager,
responsible to Mr. Richard Krier and the city manager. I
do not expect, nor do we propose, to do any major construction
projects relative to this proposal. Any incidental construc-
tion management, such as review of the developer's activities
after their completion and before the HRA certifies to their
release, will be reviewed and handled by Mr. Krier and Mr.
Marhula; the cost for the latter type of construction manage-
ment associated with redevelopment and not with public im-
provements, is included in the fees as presented.
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Mr. David Childs
June 2, 1982
Page 4
5. Please describe how condemnation activities, if necessary,
will be handled and how costs are addressed...
Condemnation activities will be handled in accord with
Minnesota statutes and the Uniform Real Estate Acquisition
and Relocation Act, as adopted by the state. Mr. Krier
and Ms. Sullivan will arrange all the documentation for
condemnation. The actual condemnation will be carried
out by the HRA attorney or an attorney of your choice;
all of the costs in preparing the condemnation documents
are included in our proposal. The attorney's costs are
not included and are estimated at approximately $5,000.00.
6. Any additional comments which you feel pertinent...
Our proposal envisions using the City of St. Anthony attor-
ney or an attorney of your choice; in the budget, we estima-
ted that the attorney's fees for all activities, including
bond sales, general legal advice, condemnation, contract
review, would not exceed more than 3% of the acquisition
cost. This number was arrived at through experience in
other similar projects, as well as experience in urban
renewal projects. Our fees, based on a percentage of the
acquisition costs, were arrived at from a sliding scale
which we have previously used. This scale system repre-
sents estimates from a redevelopment team consisting of
project management, land acquisition, marketing, appraisal,
and a relocation team which has worked together success-
fully in the -Rst.
Should you have
tact me; thank
questions.
Respectfully,
any questions, please do not hesitate to con -
you for the opportunity to answer the preceeding
ENGINEERING COMPANY
Richard C. Krier, AICP
RCK/dg
r .—
Attorne9s al Law
.I.NI II>S, HOLMIs
D d1'In l_ GRA\'F%
J OHS M. I, LFIis'RE. JR.
JOINNYM, EN HrIN
JOHN C. plLl.R\'
SIASLFY E, BRAD
JFFFA R. RRAiF1 I.F
SIFFDAM SIF S. FIN01
B a OFl. R_ _ FO kI
RANR,vRA 1.. PONTwOUO
Of Counsel:
K:V IIFRI1I: M. [101. 1IF5
June 2, 1982
Mr. David M. Childs
City Manager
City of St. Anthony
3301 Silver Lake Road
Minneapolis, Minnesota 5418
HOLMES & GRAVEN
CHARl'EREn
470 Pillrbun' Cemv. MinnenpNis. %Iinnoola 55402
lelephone 612;319-1177
Re: Kenzie Terrace Redevelopment Management Services Proposals
Dear Mr. Childs:
Pursuant to your request of May 24, 1982, we submit the following answers for your
questions regarding the Kenzie Terrace Redevelopment Management Services
Proposal.
• (1) Please indicate the name and title of the rinci al person (lead person or
maior contact to hp AsQioncri to fh;r .,.......,..
The ultimate authority rests with Mr. Holmes. However, the day-tb-day
major contact would be either Mr. Lemley or Mr. Hartman. We believe this
gives you a greater flexibility and efficiency of communication. The
percentage of time expectea to be spent on the project on the average is
somewhat difficult to assume and is obviously directly related to a number
of variables some of which may not be with our control such as the timely
approval of the project as a tax increment district. However, for the
purpose of our proposal, with the exception of services to be rendered over
and above the basic costs quoted in the proposal, we have estimated the
equivalent of one person half-time.
(2) (a) Who will be responsible for handling relocation activities?
Subcontract
Wentworth Enterprises
1955 Cleveland Street Northeast
Minneapolis, Minnesota 55418
Contact: Jacquelyne D. Wentworth
• Relocation experience for both residential and business property.
Previous experience with Minneapolis Community Development
Mr. David M. Childs
• June 2, 1982
Page 2
Agency, Von Klug and Associates, Inc., relocation consultants and the
Minneapolis Housing and Redevelopment Authority.
Is the cost included in the fees as presented?
No. Fees, like the actual relocation costs, can in our judgment only
be appropriately determined when the definite acquisition and
relocation schedules have been determined. These fees, along with
the estimated relocation costs, are then incorporated into the
financial feasibility study and financed through the project financing
method, i.e., tax increment bonds. Such fees, however, we have
proposed would be billed at cost plus 5%.
(b) Who will be responsible for handling acquisition activities?
For the most part this will be coordinated by Mr. Lemley. The
various technical elements of the process will be either by sub-
contract or a staff attorney of Holmes do Graven.
Is the cost included in the fees as presented?
Yes, in terms of Mr. Lemley's time. The fees for sub -contract work
and condemnation, if necessary, are not included.
(c) Who will be responsible for handling appraisals?
Subcontracts
Structure and Property: ;..;;!e H. Nagell do Co., Inc.
7515 Wayzata Boulevard
Minneapolis, Minnesota 55426
Contact: Lyle H. Nagell Sr., PA
A nine person staff of real estate appraisers annually preparing over
1,500 reports. Property appraised throughout the state of Minnesota
and 23 other states and Puerto Rico. The company has appraised
property for the state of Minnesota, housing and redevelopment
authorities, national mortgage corporations, banks and corporations.
Fixtures: Patchin Appraisals
4444 West 78th Street
Bloomington, Minnesota 55435
Contact: Wayne Nelson
• The firm handles all aspects of real property valuation and the
valuation of fixtures. The firm has represented government agencies
Mr. David M. Childs
• June 2, 1982
Page 3
and private individuals and corporations in Minnesota and throughout
the United States. Will handle fixture and leasehold appraisals.
Review Appraisals: Donald Hennessy
3301 - 46th Avenue North
Robbinsdale, Minnesota 55422
Has served as an appraiser for the Minneapolis Community
Development Agency and the Minneapolis Housing and
Redevelopment Authority for over 18 years. Will handle review
appraisals.
Is the cost included in the fees as presented?
No. Same rationale as highlighted in 2(a) above.
(d) Who will be responsible for handling preparation of contracts?
Redevelopment contracts would be handled primarily by John C.
Utley, staff attorney for the firm of Holmes do Graven.
is
Is the cost included in the fees as presented?
Yes. Under Phase IV retainer.
(e) Who will be responsible for handling matters connected with thelbond
sale?
Primarily James S. Holmes and John 0. Utley, attorneys, Holmes be
Graven.
Is the cost included in the fees as presented?
No. If the firm of Holmes & Graven acts in the capacity of bond
counsel to the City, the fees will be negotiated, taking into
consideration such factors as amount and complexity of issue, time
expended, risk associated with the rendering of an unqualified
approving opinion, and manner of sale.
Exhibit "A" attached hereto is the fee schedule for general
consulting, structuring and advising. If the work involves a specific
bond issue, however, we will quote a fixed fee at commencement
based upon the factors stated above. With respect to "pure" municipal
issues such as general obligation improvement bonds or tax increment
general obligations, where structuring financing plans, contracts,
negotiations, etc. is not required, this fee will be approximately $1.00
• per $1,000.
Mr. David M. Childs
• June 2, 1982
Page 4
(f) Who will be responsible for handling legal work?
Holmes do Graven, Chartered.
Is the cost included in the fees as presented?
Yes, with the exception of legal service as bond counsel and
condemnation proceedings as otherwise referenced herein.
(g) Who will be responsible for handling construction management?
The proposal of Holmes do Graven does not include construction
management other than the coordination of land acquisition,
disposition, and relocation. We would see the City's engineer as
probably the most appropriate to handle this technical function.
However, we would be in a position to subcontract this function out.
Is the cost included in the fees as presented?
No.
• (h) Who will be responsible for handling land surveys?
Subcontract
Brauer & Associates, Ltd., Inc.
7901 Flying Cloud Drive
Eden Prairie, Minnesota 55344
Contact: Fred L. Hoisington
The firm of Brauer do Associates has assisted a number of public
sector and private sector clients. The firm is versed in all aspects of
land use planning, design, landscape architecture, and. engineering.
Is the cost included in the fees as presented?
No. Same rationale as highlighted in 2(a) above.
(3) Briefly describe the methodology you will use to locate an
interested/qualified developer developers.
We would prefer to remain flexible regarding this phase and in a timely
manner review with the City Manager the then appropriate options based on
the dictates of the project's goals, objectives and timetables. We believe to
suggest either a very limited informal local search or an elaborate regional
• or national search would be premature at this time. To some extent the
methodology may be directly related to the ultimate method of disposition
•
•
Mr. David M. Childs
June 2, 1982
Page 5
of the parcel(s) bounded by Kenzie Terrace to the North, Wilson Street to
the East and Lowrey Avenue to the South.
(4) Please describe how the Tax Increment District will be formed. (Who will do
it and RPP. the Ongtq inniudod in vnur nnnnneol9
With the May, 1981 redevelopment plan already adopted and tax increment
financing having been identified as Rn essential public financing mechanism,
the creation of the tax increment financing district is the final element of
the planning phase. According to state statute, the tax increment financing
district must be located in a project or empowering area. The procedure for
establishing the tax increment financing district is presented below.
1. Designation of the redevelopment empowering area and the tax
increment finance district.
2. Upon determination of the feasibility of individual projects,
preparation of the tax increment finance plan.
3. Review and approval of the plan by the HRA and city council and
submission of plan to the County and School District for review and
comment.
4. Adoption of the tax increment finance plan at a public hearing and
authorization by the city council for the city staff and/or HRA to
administer the implementation of projects in the revitalization area.
As a result of Phase III, the City will have established a tax increment
finance district and a finance plan in accordance with Minnesota sictrites,
Sections 273.71-78. This tax increment finance district wiprovide an
essential financing mechanism for redevelopment. Members of the firm will
attend any meetings at the request of the City of St. Anthony for the
purpose of presenting the contents of the plan and addressing concerns
expressed by those present at the meetings or hearings.
Mr. Hartman and Mr. Winter will be the primary contact person. The cost is
included in the proposal.
(5) Please describe how condemnation activities (if necessary) will be handled
and how costs are addressed.
- For properties authorized by the City for acquisition, appraisals and review
appraisals would be obtained. Based on these appraisals, a proposed offering
price would be recommended to the City. With approval of the offering
price by the City, .an offer on the City's behalf would be made to the
property owner in an attempt to get a negotiated purchase. If a negotiated
• purchase is not. possible, after City approval, the property owner would be
notified of the City's intention to proceed with condemnation.
•
•
•
Mr. David M. Childs
June 2, 1982
Page 6
Condemnation proceedings and relocation efforts would then be commenced
concurrently and, if necessary, at a schedule to facilitate possession
requirements related to the project schedule. Every attempt would be made,
once actual condemnation proceedings commence, to be sensitive to
displacees. Condemnation hearings would be held as promptly as possible to
determine the ultimate public purpose findings and the condemnation
awards.
Up to the point of the actual commencement of condemnation proceedings,
the fee would be included in the monthly retainer under Phase IV of our
proposal. If it is necessary to carry out condemnation, the firm of Holmes do
Graven will be paid an hourly rate. In each case, based upon discussion with
Holmes do Graven, the City of St. Anthony will establish a dollar amount
which will constitute an estimate of the total legal fee to be incurred by the
City in connection with such matters. This estimate will be established on
the basis of the hourly rate schedule attached hereto as Exhibit "A". Prior to
billing the City in an amount in excess of such estimate, the firm of Holmes
& Graven will report to the City Manager the reason or reasons that the
estimate will be exceeded. Condemnation matters which are appealed to
district court, upon and after such appeal will be treated as litigation and
will be billed at an hourly rate over and above this estimate.
(6) Add any additional comments which you feel pertinent.
Holmes & Graven is pleased to have had the opportunity to respond to the
City's request for proposals. While we believe we have offered a full scope
of services in our proposal and hope that the City in its wisdom selects the
firm of Holmes do Graven, we would like to reiterate that we beleive we
have structured ',�= proposal in a manner which gives the City the flexibility
of choosing all or part of our services so as to best suit its coordinated
needs.
If there are any other questions or comments, please feel free to call.
Very truly yours,
�-
aures R. Lemley
Director of Administration
JRL:mj
Attachment
EXHIBIT A
is HOLMES & GRAVEN, Chartered
Effective January 1, 1982
is
•
James S. Holmes. . .
David L. Graven . . .
Stanley E. Kehl . . .
John C. Utley . . .
Robert J. Lindall. . .
John M. LeFevre, Jr.
Larry M. Wertheim
Katherine M. Holmes
Jeffrey R. Brauchle .
Stefanie N. Galey
Dan Nelson . . . .
Barbara Portwood
Technical Assistants.
Paralegals . . . .
Law Clerks . . . .
. . . $95 per hour
$88 per hour
. . $76 per hour
. . . $76 per hour
. . . $76 per hour
. . . $76 per hour
. . . $76 per hour
. . . $65 per hour
. . . $60 per hour
. . . $53 per hour
. . . $53 per hour
. . . $53 per hour
$45 per hour
. . . $40 per hour
. . . $30 per hour
This rate schedule is based upon experience and expertise of the attorneys
listed. It may from time to time during the term of this Agreement be
supplemented, provided that additional attorneys are billed at equivalent
rates for reasonably equivalent experience and expertise.
NORTHWEST ASSOCIATED CONSULTANTS INC.
2 June 1982
Mr. David M. Childs, City Manager
City Administrative Offices
3301 Silver Lake Road
St. Anthony, Minnesota 55418
RE: Kenzie Terrace Redevelopment Program Management
File No: 802
Dear Mr. Childs:
This letter is in response to the questions posed in your correspondence
dated 24 May 1982. In an attempt to maintain continuity of answers to
be provided from all three consulting firms being considered, we have
addressed the questions in the sequence which you provided.
(I) Please indicate the name and title of the principal person (lead
person or mjor contact) to be assigned to this project. What
percentage of his or her time do you expect will be spent on this
project on the average?
Response:
Mr. Daniel Wilson, Associate of Northwest will serve as project
manager. Over the duration of the project, it is expected that
he will devote typically fifty (50) percent bf his time to the,
Kenzie Terrace work effort. This time can, however, be expected
to fluctuate between twenty-five (25) and seventy-five (75) percent
depending upon the stage of activity and time necessary for HRA
review of policy matters.
Mr. David Licht, President of Northwest will serve as senior
advisor on the project. As an overall average, Mr. Licht will
devote twenty (20) percent of his time to the project. Again,
this figure can be expected to fluctuate depending upon the
stage of activity and work task being undertaken.
(2) (a) Who mill be responsible for handling relocation activities?
Is the cost included in the fees as presented?
Response:
Mr. Daniel Wilson will be the staff person responsible for re-
location activities. Mr. Wilson has considerable experience in
this field and his direct participation is seen as required in
order to maintain communication and confidence of those persons
and businesses which may be displaced.
4820 minnetonka boulevard, suite 420 minneapolis, mn 55416 612/925-9420
Mr. David M. Childs
2 June 1982
Page Two
The cost of this service was not identified in our proposal dated
4 May 1982. The reason for this omission was the uncertainty as to
the type, extent or number of relocations which will be required.
This was identified as Stage IV of our work program. It can be
expected .that a residential relocation would cost $400. The range on
business relocation would be at minimum $500 to an unspecified amount.
This range exists due to a small, one-man shop requiring minimal effort.
At the other end of the scale, a major commercial enterprise would
demand considerably more work. To be noted, however, is that the
greater the number of similar type relocations, the less the cost
will be for the individual case.
(2) (b) Who will be responsible for handling acquisition activities?
Is the cost included in the fees as presented?
Response:
Mr. Daniel Wilson, with the support of David Licht, will be the
individuals responsible for property negotiation and the drafting
of purchase options and agreements. It would be expected that the
City Attorney would contribute a limited amount of time to this
task in finalizing formal agreements and contracts.
Northwest's fees for property negotiation and acquisition activities
were included in the fees presented. Fees to be charged by the Dorsey
firm or other legal counsel whom the HRA might choose are not accounted
for.
(2) (c) Who will be responsible for handling appraisals? Is the cost
included in the fees as presented."
Response:
Under legal requirements, two appraisals of property will be made.
The HRA will select one appraisal firm and the property owner a
second. The HRA is responsible for both appraisals and could expect
to contribute $300 to $400 to the property owner's appraisal. This
again is, however, contingent upon the property and activity being
analyzed. Typically, appraisal firms are contacted for bids on the
work involved. Northwest will handle the preparation of the request
for such proposals and assist the HRA in the possible interview and
selection process.
Mr. David Childs
2 June 1982
Page Three
Northwest will also minimize the appraiser's work by collecting all
project property information and measurements necessary for the value
analysis. All of Northwest's contributions to the appraisal work were
contained in the fees presented. The specific costs of appraisals were
not provided due, again, to the uncertainty of the extent and number
of parcels and buildings included in this first phase of effort.
(2) (d) Who will be responsible for handling preparation of contracts?
Is the cost included in the fees as presented?
Response:
Based upon past experience and examples from current or recently
completed projects, Northwest will assume responsibility for the
preparation of development contracts. As Northwest and specifically
Daniel Wilson, will be involved in property as well as developer
negotiation, minimal confusion and expense will result if we under-
take the initial preparation of contract documents. The Dorsey firm
or other legal counsel selected by the HRA would then be expected
to finalize the agreements.
Northwest's time and expenses for this task have been included in the
budget presented as part of our 4 May 1982 proposal.
(2) (e) Who will be responsible for handling matters connected with
the bond sale? Is the cost included in the fees as presented?
Response:
An HRA selected underwriter will be responsible for the sale of bonds.
Cost for this service has not been included in the fees proposed by
Northwest. Note should be made, however, that if the bond sale is
$300,000 or less it is considered a negotiated issue and the costs of
the sale are passed along and made part of the sale.
To minimize potential costs, Northwest would prepare and supply the
underwriter with all necessary background information. Northwest's
services in this regard are covered in the budget and fees which
have been submitted.
(2) (f) Who will be responsible for handling legal work? Is the cost
included in the fees as presented?
Response:
Northwest's proposal assumes that the City's/HRA's present legal counsel,
the Dorsey organization, will be responsible for the limited legal work
which is envisioned as part of the project. Northwest has previously
Mr. David Childs
2 June 1982
Page Four
worked with the Dorsey firm and has high regard for their capabilities
and specialty. Northwest has, however, worked also with an extensive
variety of lawyers and is willing to work with whoever the HRA may
choose for legal advise.
The cost of legal services is not included in the fees proposed by
Northwest. It is recognized, however, that legal fees could become
extensive if not controlled. Therefore, prior to requesting or
authorizing any legal service or advise, Northwest would request the
Attorney to identify the individual to be assigned to a specific
task and to identify a maximum cost for the service to be provided.
(2) (g) Who will be responsible for handling construction management?
Is the cost included in the fees as presented?
Response:
This is viewed as a broad question, covering a number of possible
situations. From a very narrow perspective, it is anticipated the
area public improvement projects will be undertaken. In such cases,
Short -Elliot -Hendrickson, serving as the City Engineer would be expected
to design and inspect construction. In such instances, the costs would
be built in and made part of the specific project.
On the more broad scale, assuming a private development, Northwest
with the assistance of the City Building Official and Short -Elliot -
Hendrickson, would provide construction, as well as contract management.
To be emphasized is that Northwest would hold primary responsibility
and does have a certified building official on its staff who would
actively participate in this effort. Costs for this aspect of ser:"re
have not been calculated, as the extent of development or improvement
projects is unknown at this time.
(2) (h) Who will be responsible for handling land surveys? Is the cost
included in the fees as presented?
Response:
As ShDrt-Elliot-Hendrickson does not specialize in this activity,
land survey work would be bid. Northwest would prepare the necessary
RFP's, distribute them to appropriate firms and assist the HRA in
selecting a qualified service. While Northwest's fees for this work
are included in the proposal, the land survey costs are not. Again,
the extent of needed survey work will be determined as part of the
first three stages of work, and therefore, a cost for this service
cannot be suggested at this point in time.
Mr. David Childs
2 June 1982
Page Five
(3) Briefly describe the methodology you will use to locate an interested/
qualified deveZoper/deveZopers.
Response:
In summary, the following approach would be taken and tasks completed:
1. A thorough and detailed request for proposals would be formulated
by Northwest.
2. The RFP would be directly mailed to known, qualified developers.
(A list of developers would be assembled based upon past contacts
and projectsin which Northwest has participated.)
3. The project and RFP availability would be formally advertised in
Commerce and Business Daily. Corporate Report and the Metro area
Sunday newspaper c assified ads. Suni�q classified ads have
recently emerged as the most important source of such RFP's.)
4. Professional trade organizations such as the National Association
of Industrial and Office Park Developers (NAIOP) would be directly
notified.
5. The Minneapolis and St. Paul area Boards of Realty would be
contacted if approved and following HRA clarification of fee
policy.
6. Following distribution of the RFP; Northwest would organize a
specific meeting time where all interested applicants would be
invited to a presentation and explanation of the project and where
questions would be answered. This should facilitate placing all
interested parties in an equal footing for responding to the RFP.
7. Northwest would also be available by phone to respond to questions
which interested applicants might pose.
(4) Please describe how the Tax Increment District wiZZ be formed (who will
do it and are the costs included in your proposal?)
Response:
Northwest, under the leadership of Dan Wilson, will assemble the tax
increment district. Great care and caution will be exercised to insure
that all parcels included contribute to a positive financial picture.
This approach is now feasible in that recent legislation now allows.
public improvement projects related to the district to be undertaken
even though they are outside the district boundaries.
Mr, David Childs
2 June 1982
Page Six
Additionally, the focus will be on limited scale projects with high
success potential. Exposure will as a consequence be minimized for
the HRA as well as developer. A number of these limited scale projects
are foreseen as occurring through the duration of the improvement
program.
Northwest will be responsible for assembly and preparation of all
necessary and required information. On a limited basis, the City
Attorney will be asked to review and comment on the material which
is prepared. Northwest's costs for this service are included in the
proposal. Attorney's fees are not ihcluded, but are expected to be
limited.
(5) Please describe how condemnation activities (if necessary) will be
handled and how costs are addressed.
Response:
While it is recognized that condemnation is a needed and necessary
tool of redevelopment, Northwest's operating philosophy is to avoid
such situations if at all possible. Given, however, the fact that
condemnation may be required, it must be considered. As a basis of
operation, no condemnation would be seriously considered or pursued
until there was a signed developer contract. This would avoid a
situation similar to the Minneapolis Loring Park Project where the
City proceeded with condemnation only to find it had no secured
developer.
The costs of condemnation versus direct payment would also be
evaluated. Of importance in this regard is that if quick take
condemnation could not be accomplished, legal processing could
drag out over time and costs which are uncertain to begin with would
continue to mount.
A majority of the work and background necessary for a condemnation
case would be available through established project tasks. Northwest's
finalizing this material for court presentation as well as testimony
and legal fees have not been identified as part of the proposal.
The unknown factors which would be involved in such a proceeding would
appear to preclude making an estimate of gees and cost, at least at
this time.
(6) Add any additional comments which you feel pertinent.
Northwest would like to reiterate its recognition that project
administrative costs are limited to ten (10) percent of a given
project. All aspects of administration must therefore come under
this limitation. As presently viewed, however, the Kenzie Terrace
Mr. David Childs
2 June 1982
Page Seven
Improvement Program will be comprised of a number of limited projects
which in total should provide more than adequate resources to cover
program administration.
We would also like to again state that our proposal is flexible and
can be modified to accomplish specific HRA concerns or terms which
may not be identified. We would hope that Northwest would be selected
for this program based primarily upon qualifications and that working
details could be finalized through further discussions.
We greatly appreciate this opportunity to further clarify our proposal.
Should it be considered necessary we are also available for a personal dis-
cussion on any aspect of our response, proposal or qualifications. Thank
you for the opportunity to be considered for this program. We look forward
to what is hopefully your favorable response.
Sincerely yours,
NORTHWEST ASSOCIATED CONJULTW,
avid R. L i c AICP
President
DRL/nd