HomeMy WebLinkAbout2018-03-15 HRA Regular Meeting Agenda Packet
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MINUTES
OF REGULAR MEETING
OF THE EDINA HOUSING AND REDEVELOPMENT AUTHORITY
FEBRUARY 15, 2018
7:30 A.M.
I. CALL TO ORDER
Chair Hovland called the HRA meeting to order at 7:31 a.m.
II. ROLLCALL
Answering rollcall were Commissioners Brindle, Fischer, Chair Hovland, and Stewart.
Commissioner Staunton arrived at 7:35 a.m.
III. APPROVAL OF MEETING AGENDA
Motion made by Commissioner Fischer seconded by Commissioner Brindle amending the agenda
by removing Consent Agenda Items V.C. Approve Temporary Construction Easement for 3948
Market Street, and V.E. Release Agreement with Village Homes of Centennial Lakes
Condominium Associations, Inc., and approving the Meeting Agenda.
Ayes: Brindle, Fischer, Hovland, Staunton, Stewart
Motion carried.
IV. COMMUNITY COMMENT
No community comment was received.
V. CONSENT AGENDA ADOPTED
Motion made by Commissioner Fischer seconded by Commissioner Brindle approving the consent
agenda as revised to remove Items V.C Approve Temporary Construction Easement for 3948
Market Street and V.E. Release Agreement with Village Homes of Centennial Lakes
Condominium Associations, Inc., as follows:
V. A. Approve minutes of February 1, 2018, Regular HRA Meeting.
V.B Approve Amendment to Contract for Private Development, Edina Flats 4416 Valley View
Road and 6120 Kellogg Avenue.
V.D. Amendment to Real Estate Purchase Agreement, 6120 Kellogg Avenue.
Ayes: Brindle, Fischer, Hovland, Staunton, Stewart
Motion carried.
ITEMS REMOVED FROM THE CONSENT AGENDA
V.C. Approve Temporary Construction Easement for 3948 Market Street
Commissioner Brindle said she had safety concerns with the tower crane moving equipment over Market Street
while drivers passed under the crane. She suggested monitoring traffic during crane operations or closing Market
Street. Economic Development Manager Neuendorf said the crane operation will be ongoing for approximately
18 months and closing Market Street would break a promise to the business owners. The consensus was to stop
traffic during those times when the crane was in operation.
Motion made by Commissioner Brindle seconded by Commissioner Stewart approving the
temporary construction easement for 3948 Market Street.
Ayes: Brindle, Fischer, Hovland, Staunton, Stewart
Motion carried.
V.E. Release Agreement with Village Homes of Centennial Lakes Condominium Associations,
Inc.
Chair Hovland asked if legal counsel was sought in the proposed settlement and Finance Director Uram
responded yes.
Motion made by Chair Hovland seconded by Commissioner Brindle approving the release
agreement with Village Homes of Centennial Lakes Condominium Associations, Inc.
Ayes: Brindle, Fischer, Hovland, Staunton, Stewart
Minutes/Housing and Redevelopment Authority/February 15, 2018
Page 2
Motion carried.
VI. REPORTS/RECOMMENDATIONS – (Favorable vote of majority of HRA Board Members present to
approve except where noted).
VI.A. Request for Tax Increment Financing – Aeon 4040 Affordable Apartments
Economic Development Manager Neuendorf said Aeon was interested in doing a couple affordable housing
projects in Edina and Aeon has requested financial assistance for their first project at 4040 W. 70th Street. Aeon
plans to build 90 units with 80 being affordable, far exceeding the City’s policy. The property was in an area
where Tax Increment Funding (TIF) could be used, plus other funding sources that Aeon are exploring. Mr.
Neuendorf asked if the HRA would consider TIF funding and be first to pledge funds to the project. He said Mr.
Jay Lindgren, Dorsey & Whitney, and Mr. Nick Anhut, Ehlers & Associates, have looked at both the legal and
financial funding options. Mr. Neuendorf recommended moving forward.
Commissioners discussed funding sources proposed by Aeon, including TIF money and Edina Housing
Foundation’s interest in participating; how the current TIF legislation works and how TIF money would be
expensed; the concept of allowing developers to bank affordable housing credit in one building for exclusion
from another; not concentrating affordable housing in one area; understanding how this fits into a larger strategy
and the best way to create a structure; how to spend housing credit money already paid by developer; and
inviting the Edina Housing Foundation to a meeting to get their feedback. Commissioners gave permission for
staff to move forward.
VI.B. HRA Meeting: Reschedule March 1 Meeting
Motion made by Commissioner Brindle seconded by Commissioner Stewart approving
rescheduling of the March 1 HRA meeting to March 29.
Ayes: Brindle, Fischer, Hovland, Staunton, Stewart
Motion carried.
VI.C. MOTION TO CLOSE MEETING OF THE EDINA HRA AS PERMITTED BY MS. 13D.05
SUBDIVISION 3 TO DICUSS THE POTENTIAL SALE OF REAL PROPERTY LOCATED AT
5146 EDEN AVENUE
Motion made by Commissioner Staunton seconded by Commissioner Brindle to close the
meeting of the Edina HRA as permitted by MS. 13D.05 Subdivision 3, to discuss the potential sale
of real property located at 5146 Eden Avenue.
Ayes: Brindle, Fischer, Hovland, Staunton, Stewart
Motion carried.
VI.D. CLOSED DISCUSSION OF POTENTIAL SALE OF REAL ESTATE – 5146 EDEN AVENUE
Economic Development Director Neuendorf along with consultants, Jay Lindgren, Dorsey & Whitney and Nick
Anhut, Ehlers & Associates, presented an update of the proposed sale of 5146 Eden Avenue, along with
associated costs of the redevelopment. The HRA discussed the proposed redevelopment and gave staff
direction.
VI.E. MOTION TO MOVE BACK INTO OPEN SESSION
Commissioner Stewart made a motion seconded by Commissioner Staunton to move back into
open session.
Ayes: Brindle, Fischer, Hovland, Staunton, Stewart
Motion carried.
Commissioner Fischer made a motion seconded by Commissioner Stewart terminating the
Preliminary Development Agreement because the HRA has determined that the required and
preferred uses were not in alignment with the guiding principles for the site based on the
proposed financial structure.
.
Minutes/Edina Housing and Redevelopment Authority/ February 15, 2018
3
Ayes: Brindle, Fischer, Hovland, Staunton, Stewart
Motion carried.
VII. ADJOURNMENT
There being no further business on the HRA Agenda, Chair Hovland declared the meeting adjourned at 9:11
a.m.
Respectfully submitted,
Scott Neal, Executive Director
195978v3 1
(reserved for recording information)
GRANT OF TEMPORARY EASEMENT
THIS EASEMENT AGREEMENT (“Agreement”) is made and entered as of the ____
day of __________________, 2018, by and between the HOUSING AND REDEVELOPMENT
AUTHORITY OF EDINA, MINNESOTA, a public body corporate and politic of the State of
Minnesota (“HRA”), and MITCHELL J. MONSON and JAN Y. MONSON, husband and wife
(“Grantors”).
RECITALS
A. HRA is the fee owner of the real property located at 3930, 3936, 3940 and 3944
Market Street, which property is legally described on Exhibit A (“HRA Property”);
B. Grantors are the fee owners of the property abutting the HRA Property at 3945 49th
Street West, which property is legally described on Exhibit B (“Grantor Property”);
C. In connection with the improvements located on the HRA Property, including
construction of additional public parking as part of City Public Works Project 18-001, the HRA
requires a temporary construction easement over the southerly portion of the Grantor Property
legally described in Exhibit C (“Construction Easement Premises”) and will also need to locate a
195978v3 2
crane swing in the aerial portion of the Grantor Property as legally described in Exhibit D (“Aerial
Easement Premises”) in connection with the construction work on the HRA Property;
NOW, THEREFORE, in consideration of the sum of One and No/100 Dollars ($1.00) and
other good and valuable consideration to it in hand paid by the HRA, the receipt and sufficiency of
which is hereby acknowledged by Grantors:
1. Construction Easement. Grantors do hereby grant unto the HRA, its successors and
assigns, a temporary easement over, across, on and through the Construction Easement Premises
for the following purposes:
a. construction on the HRA Property;
b. the right of ingress to and egress from the portions of the Construction Easement
Premises identified herein for construction of the HRA Property;
c. possible excavation and grading of soil within the Construction Easement Premises
to create safe working conditions and prevent landslide in connection with the work on the HRA
Property.
2. Aerial Easement. Grantors do hereby grant unto the HRA, its successors and
assigns, a temporary easement over the Aerial Easement Premises for the purpose of locating a
crane swing within the Aerial Easement Premises, at least 30 feet above grade, in connection with
construction of improvements located on the HRA Property.
3. Use. Use of the Construction Easement Premises and the Aerial Easement
Premises during the term of this Agreement shall be at the will of the HRA, its successors and
assigns; it being the intention of the parties hereto that the Grantors hereby grant the uses herein
specified without divesting itself of the right to use and enjoy the Construction Easement Premises
195978v3 3
and the Aerial Easement Premises, subject only to the HRA’s right to use the same for the
purposes herein expressed.
4. Scope of Easement. The term of this Agreement shall commence upon execution
of this Agreement and expire upon the earlier of: (i) completion of the improvements on the HRA
Property or (ii) October 31, 2018.
5. Repair and Restoration. The HRA shall be responsible for the repair and
restoration of any damage done in the temporary easement areas by the HRA, its employees,
agents or contractors during the term of this Agreement.
6. Indemnification.
A. Subject to the statutory limits under Minnesota Statutes chapter 466, the HRA will
indemnify, defend and hold Grantors harmless from any and all claims, liabilities or causes of
action, including attorneys’ fees and costs, arising out of the use of the easements by the HRA,
except to the extent caused by the negligence or willful misconduct of Grantors or their successors
or assigns. Nothing herein shall be deemed a waiver by the HRA of the limits of liability set forth
in Minnesota Statutes, Chapter 466 and the HRA shall not be obligated to indemnify the Grantors
for any amounts in excess of the limits set forth therein, less any amounts that the City is required
to pay on behalf of itself, its officers, agents and employees for claims arising out of the same
occurrence.
B. Grantors will indemnify, defend and hold the HRA harmless from any and all
claims, liabilities or causes of action, including attorneys’ fees and costs, arising out of the use of
the easements by the Grantee, except to the extent caused by the negligence or willful misconduct
of HRA or its successors or assigns.
195978v3 4
7. Grantors’ Covenant. The above named Grantors, for themselves, their successors
and assigns, do covenant with the HRA, its successors and assigns, that they are well seized in fee
title of the above described Grantor Property; that they have the sole right to grant and convey the
easements identified in this Agreement to the HRA; that there are no unrecorded interests in the
Grantor Property; and that they will indemnify and hold the HRA harmless for any breach of the
foregoing covenants.
[remainder of page intentionally blank]
[signature pages to follow]
195978v3 5
IN TESTIMONY WHEREOF, the Grantors hereto have signed this document this
_______ day of __________________, 2018.
GRANTORS:
Mitchell J. Monson
STATE OF MINNESOTA )
)ss.
COUNTY OF ___________ )
The foregoing instrument was acknowledged before me this _________ day of
__________________, 2018, by Mitchell J. Monson, spouse of Jan Y. Monson.
___________________________________
NOTARY PUBLIC
195978v3 6
__________________________________
Jan Y. Monson
STATE OF MINNESOTA )
)ss.
COUNTY OF ___________ )
The foregoing instrument was acknowledged before me this _________ day of
__________________, 2018, by Jan Y. Monson, spouse of Mitchell J. Monson.
___________________________________
NOTARY PUBLIC
195978v3 7
IN TESTIMONY WHEREOF, the HRA hereto has signed this document this _______ day of
_______________, 2018.
HRA:
HOUSING AND REDEVELOPMENT
AUTHORITY OF EDINA, MINNESOTA
By:_________________________________
James B. Hovland, Its Chair
And:________________________________
Robert J. Stewart, Secretary
Attested By:______________________________
Scott Neal, Executive Director
STATE OF MINNESOTA )
)ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _______ day of
___________________, 2018, by James B. Hovland, Robert J. Stewart, and Scott Neal, the Chair,
Secretary and Executive Director of the HOUSING AND REDEVELOPMENT AUTHORITY OF
EDINA, MINNESOTA, a public body corporate and politic of the State of Minnesota, on its behalf.
___________________________________
NOTARY PUBLIC
DRAFTED BY:
CAMPBELL KNUTSON
Professional Association
Grand Oak Office Center I
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
Telephone: 651-452-5000
195978v3 8
EXHIBIT “A”
TO
GRANT OF TEMPORARY EASEMENT
Legal Description of HRA Property (3930 to 3944 Market Street):
Lot 1, Block 1, Edina Market Street, according to the recorded plat thereof, Hennepin
County, Minnesota.
195978v3 9
EXHIBIT “B”
TO
GRANT OF TEMPORARY EASEMENT
Legal Description of Grantor Property (3945 49th Street West):
That part of Lot 1, Block 1, V.H Adams Addition, Hennepin County, according to the recorded
plat thereof, lying East of the West 8 feet of Lot 1.
195978v3 10
EXHIBIT “C”
TO
GRANT OF TEMPORARY EASEMENT
Legal Description of Construction Easement Premises:
The temporary construction easement shall extend northerly fifteen (15) feet as measured from the
south property line of the following described property but shall not extend into the existing walls
of the residence or garage:
That part of Lot 1, Block 1, V.H. Adams Addition, Hennepin County,
Minnesota, according to the recorded plat thereof, lying East of the West 8
feet of Lot 1.
195978v3 11
EXHIBIT “D”
TO
GRANT OF TEMPORARY EASEMENT
Legal Description of Aerial Easement Premises:
That part of Lot 1, Block 1, V.H. Adams Addition, Hennepin County, Minnesota,
according to the recorded plat thereof, lying East of the West 8 feet of Lot 1.
March 15, 2018
Jan and Mitchell Monson
3945 West 49th Street
Edina, Minnesota 55424
RE: City of Edina Project No. PW18-001 (North Ramp Expansion)
Construction Easement and Mitigation for 3945 W. 49th Street
Dear Mr. and Mrs. Monson,
Thank you for your patience as we have been working through the details of this new public improvement project at 50th
and France.
As you know, the City is expanding the North Parking Ramp located immediately to the south of your property. This
project is funded by the Edina Housing and Redevelopment Authority (HRA). The project includes the addition of a new
fourth level of public parking on top of the existing structure and comparable four-level additions on the east and west
ends of the Ramp. The new additions will also include new retail space to enliven the District and to provide new
opportunities for you and your neighbors.
In a neighborly effort, the Board of the HRA has authorized additional improvements to screen the new parking ramp
from your back yard. Based on early input from you and your neighbors, the project design includes the following:
• Rear wall follows the same line as the existing Ramp to avoid getting too close to the property line.
• Height limited to three full stories with rooftop parking and stair/elevator towers.
• Elevators and stairways located along Market Street to avoid stair towers near the property line.
• Exterior wall painted with earth tone colors to blend in rather than stand out.
• Wall openings filled with louvers to enhance privacy to you and minimize light spill out of the Ramp.
o These louvers replace the decorative panels that were not preferred by neighbors and also replace the:
original green vines which did not prove to be feasible in this shady location.
• Reduced height of rooftop light poles to minimize light spill from the highest level.
In addition to these passive measures, the HRA is also offering to provide new screening along the property line – fencing
and landscaping. Due to the unique conditions that occur on the shared property line with your property at 3945 W. 49th
Street, the Edina HRA is pleased to extend the following mitigation strategies at no expense to the property owner:
1) IMPACT ON EXISTING TREES LOCATED ALONG THE PROPERTY LINE - The contractor will exercise due
care while excavating soil on City property and in the temporary construction easement area in an effort to
minimize damage to the roots of your trees that have migrated onto City property.
a. The excavation work is scheduled to occur between April and July 2018. The City will advise you when
the schedule becomes more precise.
PW18-001 Construction Mitigation – 3945 Monson
March 15, 2018
Page 2
b. It is noted that the evergreen trees along the fence line are mature but overcrowded on the site. Many of
the lower branches have already been removed and most of the upper level branches are only thriving on
parts of the trees located away from the adjacent elm tree on your property.
c. The City will provide inspection of tree roots during the excavation process to reasonably predict if the
construction activity will have a significant impact on your trees.
d. The City will alert you of the beginning of excavation and will tour the site with you or share photos of
the construction site if required due to timing or safety concerns.
e. Regardless of 1a, in the event that the City’s construction project causes significant damage to the root
structure of the existing trees on your side of the shared property line, and one or more of these trees
dies prior to November 1, 2023 (5 full years after completion of the construction project), the City will
remove the impacted trees at City expense and provide replacement landscaping as described below.
i. If there is mutual consent by the City and property owner after the excavation work has
occurred that the trees will not survive for more than two years, the City will remove and
replace the trees by November 1, 2018.
ii. If in the opinion of the City Arborist and mutually agreeable with the property owner, the
excavation has done minimal impact to the existing trees, no further work will be done unless
one or more of the existing trees fail prior to November 1, 2023.
f. If replacement plantings are necessary as a result of the City’s construction project, the City will Install
up to ten upright shrubs or four trees along the new fence line on your property
i. Shrub or tree variety to be mutually agreed upon up to an installed cost not to exceed $4,000.
The total cost shall be increased for inflation at 2 percent annually up to 2023. This is the cost of
new plantings only and does not include the cost to remove any existing tree that died as a result
of this construction project.
ii. Replacement plantings shall be of a size that allows them to be carted through the private
property. The placement of the house, garage and trees does not allow trees to be ‘spaded’ into
the back yard.
iii. Type and spacing of plantings to be confirmed as appropriate for location by landscaper supplier
iv. Portions of the property owners grass or yard that is disturbed by the removal or installation
process shall be restored with grass seed.
v. Plantings require frequent watering by the property owner for the first full season
vi. Plantings will come with 1-year full replacement guarantee by the landscape contractor
vii. If the new plantings fail before November 1, 2022 (four full years), please contact the City for
replacement at City Expense
PW18-001 Construction Mitigation – 3945 Monson
March 15, 2018
Page 3
2) TEMPORARY FENCE - Installation of a 4 to 6 ft. high temporary fence to allow your dog to remain in the fenced
back yard during construction activity:
a. The temporary fence will include mesh and/or screening to increase privacy and collect large debris
particles generated by the construction activity.
3) NEW FENCE - Installation of new fence on the City side of the property line:
a. New fence to be 8 ft. tall (nominal) of a similar style as your existing fence, sealed to prevent weathering
with decorative caps on the posts.
b. New fence to extend on the eastern side of your property up to the shed in the back yard.
c. You are welcome to have the contractor install additional lengths of fencing elsewhere in your yard, but
that would be at your personal expense.
d. Removal of the rear portions of your 6 ft. wooden fence.
e. The new fence on your property will have a 1-year warranty from the installer. Please contact the City if
this fence needs attention during the warranty period.
f. If the new fence on City property requires maintenance or repair in the future, please contact the City .
for corrective action.
4) EXISTING SHRUBS – The City will remove the dead arbor vitae shrubs on City property near the south eastern
corner of your property
a. As requested, the City’s grassy area on the north side of the existing structure will remain in substantially
the same condition as currently exists and will not be re-graded as part of this PW18-001 project.
b. Please contact the City if the remaining shrubs need attention in the future.
Please indicate your acceptance of this mitigation package by signing the temporary construction easement. A fully
executed copy will be returned to you and recorded for a permanent record. If you have any questions, please feel free
to contact me or the City’s Economic Development Manager Bill Neuendorf, at 952-826-0407.
Thank you again for your patience as the City makes another major investment to improve the neighborhood.
Regards,
Scott Neal
City Manager and HRA Executive Director
c. Brian Olson, Public Works Director
Bill Neuendorf, Economic Development Manager
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Request for Purchase
Date: March 15, 2018
To: Chair & Commissioners of the Edina HRA
From: Bill Neuendorf, Economic Development Manager
Subject: REQUEST FOR PURCHASE: Environmental Services for 5146 Eden Avenue
Purchase
Subject to:
☐List Quote/Bid
☐State Contract
☒Service Contract
The
Recommended
Bid is:
☒Within Budget
☐Not Within Budget
Date Bid Opened or Quote Received: Bid or expiration Date:
March 7, 2018 May 7, 2018
Company: Amount of Quote or Bid:
Braun Intertec Corporation
$28,382.00
Recommended Quote or Bid:
Braun Intertec Corporation
$28,382.00
Page 2
City of Edina • 4801 W. 50th St. • Edina, MN 55424
Request for Purchase
Department Director Authorization: ________________________________________
City Council Authorization Date: ______________________ (for purchases over $20,000 only)
Budget Impact
The cost of this site investigation is within the range anticipated for the redevelopment of the site. Funds
will come from #9232 – Centennial Lakes Fund with anticipated reimbursement from Grandview 2 Fund.
Environmental Impact
This work is required so that the vacant site can be returned to productive use. The focus of this
work is to identify the degree of environmental contamination on the site (if any) so that it can be
remediated.
Community Impact
This work is necessary so that the vacant site can be returned to productive use. It is anticipated
that approximately 60 percent of the site will be dedicated to a community use.
AA/EOE
Braun Intertec Corporation
11001 Hampshire Avenue S
Minneapolis, MN 55438
Phone: 952.995.2000
Fax: 952.995.2020
Web: braunintertec.com
March 7, 2018 Revised Proposal QTB072914
Mr. Bill Neuendorf
Edina Housing & Redevelopment Authority
Edina City Hall
4801 West 50th Street
Edina, MN 55424
Re: Revised Proposal for Preliminary Geotechnical Evaluation and Environmental Evaluation
The Grandview
Eden Avenue at Acadia Avenue
Edina, Minnesota
Dear Mr. Neuendorf:
We are pleased to present this proposal to perform a preliminary geotechnical evaluation and
environmental evaluation services for the referenced site in Edina, Minnesota.
Project Information
We understand this project will include the construction of The Grandview multi-use development on the
northwest corner of Eden and Acadia Avenues in Edina, Minnesota. The development will include an Art
Center, parking ramp, townhomes, and a multi-unit residential tower. The Art Center and parking ramp
will have 3 levels and occupy the southern 3/4 of the site. The residential tower will have 17 stories
above the 3-story parking ramp. We note that this project is still in conceptual planning stages, thus,
project components are subject to change. Structural details are also not available at this time.
Background Information
In preparation of this proposal, we have reviewed several sources of information obtained during
previous projects that we have worked on both at this site and on sites in the vicinity of this project. It is
apparent that this site has previously undergone several stages of industrial and commercial
development over the past 100 years. It is unknown at this time, what the extent of removal was for any
previous structures or storage tanks on this site. We anticipate that relict foundations or debris could be
present in areas of this site from the previous development. It is also apparent that a substantial
excavation was performed on the northern portion of the property to achieve present grades.
We also anticipate that the subgrade at this site will generally consist of generally granular soils, with
various depths of existing fill overlying native glacial deposits. Groundwater will likely be present at
depths of 40 feet or greater; however, perched water conditions could also be encountered. Due to high
foundation loads, we anticipate that deep foundations may be needed for support of the residential
tower; however, this will be dependent on actual subgrade conditions encountered.
Edina Housing & Redevelopment Authority
Revised Proposal QTB072914
March 7, 2018
Page 2
Scope of Services
Due to the anticipated site conditions and project timeline, we recommend this project be performed in
a phased approach. The following tasks are proposed to help us meet our project goals for the following
tasks: 1) the Preliminary Geotechnical Evaluation, 2) the Preliminary Environmental Evaluation, and 3)
the Phase I Environmental Site Assessment. If unfavorable or unforeseen conditions are encountered at
any point during the completion of tasks that lead us to recommend an expanded scope of services, we
will contact you to discuss those conditions before resuming work. Please indicate which of these
services you would like to pursue at this time.
Task 1 – Preliminary Geotechnical Evaluation
Task 1 of this project would include performing a preliminary geotechnical evaluation including a few soil
borings drilled across the site. The following sections provide a summary of the proposed services to be
included in this task.
The purpose of this preliminary geotechnical evaluation is to generally characterize subsurface geologic
conditions at select exploration locations, evaluate their impact and provide preliminary geotechnical
recommendations for use in the conceptual design and construction planning for the proposed multi-use
development.
We note that additional geotechnical evaluation and borings will be needed later in the project process
to provide final design geotechnical recommendations for this project.
Site Access, Staking and Utility Clearance
We understand the site is accessible to our truck-mounted or ATV-mounted drill rigs. Snow removal to
facilitate access to the site is not included in our scope of services. If snow removal is required, it will be
performed by others prior to our arrival.
We will stake prospective subsurface exploration locations and obtain surface elevations at those
locations using GPS (Global Positioning System) technology. For purposes of linking the GPS data to an
appropriate reference, we request that you provide CAD files indicating location/elevation references
appropriate for this project, or give us contact information for the consultant that might have such
information.
Prior to drilling or excavating, we will contact Gopher State One Call and arrange for notification of the
appropriate utility vendors to mark and clear the exploration locations of public underground utilities.
You, or your authorized representatives, are responsible to notify us before we begin our work of the
presence and location of any underground objects or private utilities that are not the responsibility of
public agencies. We will hire a private locator (Hance Locating) to assist in the location of underground
utilities near the borings.
Edina Housing & Redevelopment Authority
Revised Proposal QTB072914
March 7, 2018
Page 3
Soil Borings
We will obtain preliminary subsurface information to evaluate subsurface conditions with the requested
4 standard penetration test (SPT) borings spread across the site. The borings will be extended to depths
of 40 to 100 feet for a total of 220 linear feet of drilling. The deeper borings will be performed in the
northern parts of the site. Standard penetration tests will be performed at 2 1/2-foot vertical intervals to
a depth of about 15 feet, 5-foot intervals to a depth of 50 feet, then at 10-foot intervals at greater
depths.
If groundwater is encountered in the boreholes, the depth where it is observed will be recorded on the
boring logs.
If existing fill, organic materials or other structurally unfavorable soils are not penetrated above the
intended boring termination depths, we will contact you to discuss the potential need for deeper
borings. If warranted to extend the borings beyond their intended termination depths, we would charge
an additional $30 per linear foot beyond the originally intended termination depth; however, we will
contact you prior to incurring additional costs for increasing our total estimated drilled footage.
MDH Notification
This proposal contains provisions for characterizing subsurface conditions to depths of 15 feet or deeper.
Auger borings advanced to such depths, whether instrumented for monitoring or not, are considered
environmental wells by the Minnesota Department of Health (MDH), and need to be made known as such to
the MDH before they are completed. This requires that applicable MDH notification forms be signed by the
well owner, or representative/agent, and returned to us. Braun Intertec cannot mobilize equipment and
crews until an MDH notification form has been signed and submitted. An MDH notification form is attached
to this proposal for this purpose.
The MDH notification fees that accompany Environmental Well sealing may include site, individual well,
well combination, and maintenance fees based on the depths and purpose of the “wells.” The fees
applicable to this project are described in further detail below.
Borehole Abandonment
Minnesota Well Code requires sealing of any boring or core that encounters groundwater and is either
greater than 15 feet deep or penetrates a confining layer. Based on our proposed subsurface
characterization depths, we will seal about 220 linear feet of borings with grout and prepare associated
sealing records which must also be submitted to the MDH. The fees associated with the MDH sealing
process are included in the scope of this proposal.
Over time, subsidence of borehole backfill may occur, requiring surface grades to be re-leveled.
Braun Intertec is not assuming responsibility for re-leveling or re-patching subsequent to initial backfilling
long term. Our drilling activities may also impact the vegetation and may rut the surface to access boring
locations. Restoration of vegetation and turf is not part of our scope of services.
Edina Housing & Redevelopment Authority
Revised Proposal QTB072914
March 7, 2018
Page 4
Sample Review and Laboratory Testing
Soil samples will be returned to our geotechnical laboratory, where they will be visually classified and
logged by a geotechnical engineer. To help classify the materials encountered and estimate their
engineering properties, lab testing may include moisture content, organic content, unit weight, Atterberg
limits, and/or grain-size analysis. The actual schedule of lab testing will be determined by the engineer
based on the subsurface conditions encountered.
Geotechnical Reporting
Data obtained from the borings and laboratory tests will be used to evaluate the subsurface profile and
groundwater conditions, perform a preliminary engineering analyses related to structure design and
performance, and prepare a Preliminary Geotechnical Evaluation Report including:
A sketch showing the boring locations.
Logs of the borings describing the materials encountered and presenting the results of our
groundwater measurements and laboratory tests.
A summary of the subsurface profile and groundwater conditions.
Discussion identifying the site conditions that will impact structure design and performance,
qualifying the nature of their impact, and outlining alternatives for mitigating their impact.
Discussion regarding the reuse of on-site materials during construction and the impact, if
any, of groundwater on construction.
Preliminary recommendations for preparing structure subgrades, including excavation
support if applicable, and the selection, placement and compaction of excavation backfill and
other structural fill.
Preliminary recommendations and considerations for use in the design and construction of
foundations, floor slabs, below grade walls, utilities, and pavements at this site.
Upon completion a digital (PDF) copy of our report will be submitted to you.
We note that additional geotechnical evaluation and borings will be needed later in the project process
to provide final design geotechnical recommendations for this project.
Task 2 – Preliminary Environmental Evaluation
Task 2 of this project will include sampling and screening of the geotechnical soil borings for
environmental purposes.
Edina Housing & Redevelopment Authority
Revised Proposal QTB072914
March 7, 2018
Page 5
Field Screening
Soil samples retrieved will be examined by field personnel for unusual staining, odors, and other
apparent signs of contamination. In addition, the soil samples will be screened for the presence of
organic vapors using a photoionization detector (PID). The PID will be equipped with a 10.6-electron-volt
lamp and calibrated to an isobutylene standard. The PID will be used to perform direct measurement and
a headspace method of field analysis, as recommended by the Minnesota Pollution Control Agency
(MPCA) in Petroleum Remediation Program Guidance Document 4-04 (September 2008).
Soil samples will be collected from the soil borings for laboratory analyses. Soil samples will be collected
from depth intervals in the unsaturated zone where indications of contamination are observed in the
field. If no indications of contamination are observed in the field, soil samples will be collected from
depths most likely to be encountered during proposed redevelopment activities based on information
provided by the client at the time this proposal was prepared.
Analytical Testing
The budget for this task assumes that a total of 4 soil samples will be submitted to Pace Analytical
Laboratories in Minneapolis, Minnesota, and analyzed for a combination of the following parameters:
Volatile organic compounds (VOCs) using United States Environmental Protection Agency
(EPA) Method 8260
Polycyclic aromatic hydrocarbons (PAHs) using EPA Method 8270
Polychlorinated biphenyls (PCBs) using EPA Method 8082
Diesel range organics (DRO) using the Wisconsin Department of Natural Resources (WDNR)
Method
Gasoline range organics (GRO) using the WDNR Method
Resource Conservation and Recovery Act (RCRA) metals using EPA Methods 6020 and 7471
Temporary monitoring wells will be installed in 2 of the soil borings to evaluate groundwater conditions
at the Site. The wells will be permitted with the MDH.
Groundwater Sampling and Testing
Prior to sampling, static groundwater levels in each well will be measured and recorded. Groundwater
samples will be collected using a length of tubing equipped with a check ball valve. Groundwater samples
will be placed directly into laboratory-supplied containers, preserved appropriately, and submitted to the
laboratory for chemical analyses.
The budget for this task assumes that a total of 2 groundwater samples will be collected from the
temporary wells and submitted to Pace Analytical Laboratories in Minneapolis, Minnesota and analyzed
for a combination of the following parameters:
VOCs using EPA Method 8260
PAHs using EPA Method 8270
Dissolved RCRA metals using EPA Methods 6010 and 7470
Edina Housing & Redevelopment Authority
Revised Proposal QTB072914
March 7, 2018
Page 6
Soil Vapor Probes
A total of 5 soil vapor probes will be advanced on the Site to a depth of approximately 10 feet bgs and
then retracted to a depth of 8 feet bgs. New, inert tubing will be attached to the top of the downhole
sampler and the sampling point and tubing will be purged with a hand pump to remove two volumes of
air prior to sample collection. Following purging, organic vapor concentrations will be screened with a
PID and the value recorded. The soil vapor samples will then be collected using laboratory-supplied
negative pressure air-sample collection canisters (6-liter canisters) equipped with 200 milliliter per
minute (mL/min) flow restrictors in accordance with the MPCA guidelines. Following sample collection,
the temporary sampling point will be removed from the borehole and the borehole will be sealed in
accordance with MDH guidelines.
The soil vapor samples will be submitted to Pace Analytical Laboratories in Minneapolis, Minnesota and
analyzed for VOCs using EPA Method TO-15.
Environmental Results
Verbal results of the environmental evaluation will be provided to you as they become available. Upon
completion of the on-Site work and receipt of laboratory analytical results, a report will be prepared
detailing the methods, results, and conclusions/recommendations. A draft copy of the report will be
forwarded to you prior to report finalization.
Only an electronic copy of the Braun Intertec report will be submitted to you unless you request
otherwise.
Task 3 – Phase I Environmental Site Assessment
The objective of a Phase I Environmental Site Assessment (ESA) is to evaluate the site for indications of
recognized environmental conditions and to assist in satisfying All Appropriate Inquiries (AAI) criteria and
requirements. The Phase I ESA will be conducted in general conformance with the scope and limitations
of ASTM International Practice E 1527-13 (ASTM Practice E 1527-13) and 40 CFR Part 312. The following
sections provide a summary of the services to be completed for Task 4.
Site History Review
The Phase I ESA will summarize reasonably ascertainable information pertaining to former and current
land-use activities at the site. Our summary will include a review of aerial photographs, fire insurance
atlases, city directories, property tax files, building records, topographic maps, and/or other historical
documents to satisfy the historical-use requirements of the ASTM Practice E 1527-13 and 40 CFR Part 312.
Regulatory Information Review
We will request that a national regulatory information vendor, such as Environmental Data Resources,
Inc., conduct a limited file evaluation of the site. If readily available and practically reviewable, the file
evaluation will include, at a minimum, a review of the following databases within the corresponding
approximate minimum search distance indicated in the ASTM Practice E 1527-13 and 40 CFR Part 312:
Edina Housing & Redevelopment Authority
Revised Proposal QTB072914
March 7, 2018
Page 7
Federal National Priorities List (NPL)
Federal Comprehensive Environmental Response, Compensation, and Liability Information
System (CERCLIS)
Federal Institutional and Engineering Controls
Federal Resource Conservation and Recovery Act (RCRA) Transport, Storage and Disposal
(TSD) facilities
Federal RCRA TSD facilities that have received RCRA corrective action activities
Federal RCRA generators
Federal Emergency Response Notification (ERNS) sites
State NPL and CERCLIS equivalents
State landfill and/or solid waste disposal sites
State Voluntary cleanup programs
State leaking underground and aboveground storage tank (LUST/LAST) sites
State registered underground and aboveground storage tank (UST/AST) sites
State Brownfield programs
State Institutional and Engineering Controls
State spills list
We will review and summarize this information, and comment on known and potential environmental
hazards that may impact the site. The scope of work does not include a detailed review of file
information of identified facilities listed on the regulatory databases. However, if in our opinion a file
review is warranted to evaluate the existence of a recognized environmental condition, historical
recognized environmental condition, controlled recognized environmental condition, or a de minimis
condition, we will contact you to discuss expanding the assessment to include a file review and the
associated costs.
Site Reconnaissance and Interviews
The Phase I ESA will include a reconnaissance of the site. During the reconnaissance, we will note, if
observed, the type of vegetation, exposed soils, open excavations or depressions, and site topography.
Visible indications of underground and aboveground storage tanks, dumping, spills of petroleum and
chemicals, and other obvious potential sources of contamination will be noted. In addition, we will
conduct interviews with site representatives and governmental officials regarding past and current land-
use activities.
Phase I ESA Reporting
A draft Phase I ESA report will be sent to you for review and comment. The Phase I ESA report will remain
in draft status until we are notified by you to proceed with issuance of the final Phase I ESA reports.
If we encounter indications of existing or potential sources of contamination during our assessment, we
will notify you to discuss how the assessment may proceed. You may wish to discontinue the Phase I ESA
or you may consider expanding the assessment to further evaluate the contamination sources that are
identified. If contamination at the site is confirmed, the property owner may be required to notify proper
governmental authorities.
User-Provided Information
As part of Phase I ESA, the “User” should provide available information to Braun Intertec as the
Environmental Professional to help identify the possibility of recognized environmental conditions in
Edina Housing & Redevelopment Authority
Revised Proposal QTB072914
March 7, 2018
Page 8
connection with the Site. A “User” is the party seeking to use ASTM Practice E 1527-13 to complete an
environmental site assessment and may include, without limitation, a potential purchaser, tenant or
owner of the property, a lender, or a property manager.
The attached User questionnaire should be completed in its entirety by the User(s) and returned with the
signed authorization. If multiple Users are requesting reliance on the Phase I ESA, please provide us with a
questionnaire completed by each of the appropriate entities.
Assessment Limitations
Upon completion of the Phase I ESA, Braun Intertec does not guarantee qualification for Landowner
Liability Protections (LLP). Our proposed scope of work is consistent with “good commercial and
customary practices” (as defined by ASTM Practice E 1527-13) conducted in an effort to evaluate
recognized environmental conditions at a site in this area.
The assessment will not include vapor encroachment screening as defined in ASTM Practice E2600-15,
Standard Guide for Vapor Encroachment Screening on Property Involved in Real Estate Transactions.
ASTM Practice E2600-15 is not a requirement or component of AAI, and its results are not determinative
of whether hazardous substances from a release are or may be present at the property for the sake of
AAI or ASTM E1527-13. However, vapors present or likely present from hazardous substances or
petroleum products will be considered no differently than hazardous substances or petroleum products
present or likely present as a result of a release to the environment. Therefore, while a vapor
encroachment screening per the ASTM Practice E2600-15 standard will not be conducted as part of this
proposal, the potential for impacts to the property from vapor migration that is a result of a release of
hazardous substances and/or petroleum products to the environment will be considered when assessing
for the presence of a recognized environmental condition as defined by ASTM E1527-13.
Costs
We will furnish the services described in this proposal on a time and materials basis at the rates
identified on the attached cost breakdown. A summary of these costs by tasks is provided in Table 1
below. Please indicate which of these you would like to complete by checking the boxes to the left.
Table 1. Proposed Cost Summary
Services to
Complete Task Cost
☐ Task 1 – Preliminary Geotechnical Evaluation $11,665
☐ Task2 – Preliminary Environmental Evaluation 14,197
☐ Task 3 – Phase I ESA 2,520
☐ Total of All Phases $28,382
Edina Housing & Redevelopment Authority
Revised Proposal QTB072914
March 7, 2018
Page 9
Schedule
Preliminary Geotechnical Evaluation
We anticipate that field exploration for the soil borings can begin within approximately 3 weeks of
written authorization and should be completed in approximately 4 days. Sample classification and
laboratory testing will likely take an additional 3 to 5 days. We will pass along the soil boring results as
they are obtained and received. We anticipate we can submit our final geotechnical evaluation report
approximately 2 weeks after completion of the borings.
Preliminary Environmental Site Assessment
Environmental field screening will take place concurrently with the geotechnical soil borings. The field
work is estimated to take 5 business days to complete. Typical turnaround time on laboratory analysis is
approximately 8 business days for all samples. A draft report will be forwarded to you within 2 weeks
after receipt of laboratory analytical results.
Phase I ESA
We anticipate the draft Phase I ESA report will be completed within three weeks from the date of your
written authorization. The Phase I ESA report will remain in draft status until we are notified by you to
proceed with issuance of the final Phase I ESA report.
General Remarks
Please note the Scope of Services for the proposed investigation, in conjunction with the existing data, is
designed to further evaluate impacts at the Site. However, because there is a fixed number of sampling
locations proposed, the Scope of Services proposed herein may not fully define the extent of contamination
that may be present at the Site.
If our proposed scope of services cannot be completed according to this schedule due to circumstances
beyond our control, we may need to revise this proposal prior to completing the remaining tasks.
Braun Intertec appreciates the opportunity to present this proposal to you. It is being sent in an
electronic version only. A hard copy of the proposal will be supplied upon request. Please return a
signed copy of the proposal in its entirety.
The proposed fee is based on the scope of services described and the assumption that our services will
be authorized within 30 days and that others will not delay us beyond our proposed schedule.
Client:Service Description:Work Site Address:
Eden Ave at Arcadia Ave
Edina, MN 55410
Edina Housing & Redevelopment AuthorityBill Neuendorf
Edina City Hall
4801 West 50th Street
Edina, MN 55424
(952) 826-0407
Preliminary Geotechnical and Environmental
Assessment
Description Quantity Units Unit Price Extension
Phase 1 Preliminary Geotechnical Evaluation
Activity 1.1 Locating $885.00
205 Site layout and utility clearance 3.00 Hour 85.00 $255.00
288 Project Assistant 1.00 Hour 80.00 $80.00
371 CADD/Graphics Operator 1.50 Hour 100.00 $150.00
SUB-BILL Subcontractor Billable 1.00 Each 220.00 $220.00
5099 Trimble R8 Rover (horizontal and vertical), per hour 3.00 Each 50.00 $150.00
1862 Utility Trip Charge 1.00 Each 30.00 $30.00
Activity 1.2 Drilling $6,040.00
9000 Truck Mounted Drilling Services, per hour 20.00 Each 270.00 $5,400.00
1073 Sealing Records, each 2.00 Each 75.00 $150.00
9732 Grout with neat cement, materials per foot 220.00 Each 1.50 $330.00
288 Project Assistant 2.00 Hour 80.00 $160.00
Activity 1.3 Lab Testing $530.00
1166 200 wash (ASTM C 117), per sample 4.00 Each 65.00 $260.00
1174 Organic content (ASTM D 2974), per sample 2.00 Each 50.00 $100.00
1152 Moisture content (ASTM D 2216), per sample 12.00 Each 10.00 $120.00
1154 Moisture Content and Density (ASTM D 2937)2.00 Each 25.00 $50.00
Activity 1.4 Engineering $4,210.00
138 Project Assistant 6.00 Hour 80.00 $480.00
118 Staff Engineer 6.00 Hour 125.00 $750.00
126 Project Engineer 12.00 Hour 145.00 $1,740.00
128 Senior Engineer 6.00 Hour 175.00 $1,050.00
125 Project Manager 2.00 Hour 95.00 $190.00
Phase 1 Total:$11,665.00
Phase 2 Preliminary Environmental Site Assessment
Activity 2.1 Drilling Services $1,000.00
SUB-BILL Drilling Subcontractor 1.00 Each 1,000.00 $1,000.00
Activity 2.2 Field Work $4,040.00
310 Environmental Technician III 30.00 Hour 105.00 $3,150.00
1868 ENV Trip Charge 3.00 Each 30.00 $90.00
5036 PID w/10.6 eV lamp, per day 3.00 Each 100.00 $300.00
6912 Water sampling tubing & consumables, per foot 80.00 Each 2.00 $160.00
5099 Trimble R8 Rover (horizontal and vertical), per hour 2.00 Each 50.00 $100.00
6914 Soil gas sampling tubing & expendable tip, per sample 4.00 Each 60.00 $240.00
Page 1 of 202/09/2018 03:52 PM
Project Proposal
QTB072914
The Grandview
Proposal Total:$28,382.00
Activity 2.3 Laboratory Analysis $3,757.00
SUB-BILL Analytical Testing 1.00 Each 3,757.00 $3,757.00
Activity 2.4 Project Management & Reporting $5,400.00
360 Project Assistant 2.00 Hour 80.00 $160.00
371 CADD/Graphics Operator 1.50 Hour 100.00 $150.00
363 Project Manager 2.00 Hour 95.00 $190.00
340 Senior Scientist 28.00 Hour 175.00 $4,900.00
Phase 2 Total:$14,197.00
Phase 3 Phase I ESA
Activity 3.1 Field Work $300.00
320 Staff Scientist 3.00 Hour 100.00 $300.00
Activity 3.2 Expenses $380.00
1868 ENV Trip Charge 1.00 Each 30.00 $30.00
SUB-BILL Historical Information 1.00 Each 350.00 $350.00
Activity 3.3 Project Management & Reporting $1,840.00
320 Staff Scientist 12.00 Hour 100.00 $1,200.00
340 Senior Scientist 2.00 Hour 175.00 $350.00
360 Project Assistant 1.50 Hour 80.00 $120.00
363 Project Manager 1.00 Hour 95.00 $95.00
371 CADD/Graphics Operator 0.75 Hour 100.00 $75.00
Phase 3 Total:$2,520.00
Page 2 of 202/09/2018 03:52 PM
Project Proposal
QTB072914
The Grandview
AA/EOE
Braun Intertec Corporation
11001 Hampshire Avenue S
Minneapolis, MN 55438
Phone: 952.995.2000
Fax: 952.995.2020
Web: braunintertec.com
March 7, 2018 Revised Proposal QTB072914
Mr. Bill Neuendorf
Edina Housing & Redevelopment Authority
Edina City Hall
4801 West 50th Street
Edina, MN 55424
Re: Minnesota Department of Health Well Sealing Notification Form
The Grandview
Eden Avenue at Acadia Avenue
Edina, Minnesota
Dear Mr. Neuendorf:
Please complete the “Well Owner” section only of the Minnesota Department of Health (MDH) Well
Sealing Notification form below and return it to Braun Intertec along with the signed proposal. We will
complete the remainder of the form and submit it to the MDH.
NOTE: This form must be completed and returned to Braun Intertec prior to us scheduling the
mobilization of our equipment and crews to the project site.
Client Information RequestForm
Environmental Site Assessment
Project/Site Name
So that we may serve you better,please answer the following questions concerning the project Site.If a
question does not apply to the Site,answer with "NA."If you do not know the answer,reply "unknown."
Please return the completed form along with one copy of the signed authorization letter.
Client Objectives
A. What is your interest in the Site?Circle all that apply.
Buying Property Refinancing Selling Property
Development Redevelopment Other
B.For reliance purposes,who would you like to be addressed on the report?
Name Telephone
Address E mail/Fax
C.How many copies?Unless otherwise requested,the Braun Intertec
standard is two.
To whom?
D. Is there anyone not already listed on the report that requires a copy of the final report?
Name Telephone:
Address E mail/Fax
E. What is the desired completion date for this project?
F. Do you wish to receive a verbal report before the written report is received?YES NO
G. Is a draft report requested prior to submittal of the final report?Once a report is issued final,
changes can be made,but additional fees will apply and will require that the original copies of
the report be sent back.
YES NO Email /Fax
H. Is confidentiality requested?YES NO
If so,to whom is it limited?
The Grandview
Site SpecificInformation
A. Who is the current property owner?
Name Telephone
B. Has any previous environmental work been performed on the Site?Circle all that apply.
Geotechnical/Soil Borings Phase I/Phase II Site Assessments
Asbestos Evaluations Hazardous Materials Testing
Unknown No
Other:
If yes:
When was it performed?
By whom?Name and telephone number?
Name Telephone
What were the results?
Are report copies available?YESNO
C.Where is the Site located?
Address
Legal description
D. Is a current Site plan available?If so,please provide.YES NO
E. Who will provide access to the property and/or who is the Site contact?
Name:Telephone:
F. Are there any special concerns regarding the property?
G.How large is the property (total acreage)?
H. How is the property currently used?Circle all that apply.
Undeveloped Agricultural Residential Parking Lot
Commercial
Industrial Retail Office Building Warehouse
Other________________
I. What is the proposed use of the property?
J.Are there existing buildings on the property?YES NO
If yes:
How many buildings?
What year was each building built?
What is the total square footage of each building?
Are you aware of any asbestoscontaining building materials in any building?
Give a brief description and use of each building.
K.What was the property used for in the past?
L.Has the property ever been used for dumping or landfilling in the past?
M. How are the adjacent properties used?
N. Are there currently or previously any aboveground or underground storage tanks located on the
property?
YESNO
If yes:
Where are they located?
What is the size and contents of the tanks?(ex:500gallon diesel)
When were the tanks installed?
Are there any maintenance records available for the tanks?
Are the tanks currently being used?YES NO
If No:When were the tank(s)closed?
Was the MPCA notified?
O.Have hazardous chemicals or petroleum products ever been stored at the Site?YESNO
If yes,which ones?______________________________________________
P.Utilities
Are there any wells or septic systems formerly or currently located at the Site?YES NO
Is it connected to city sewer and water?YES NO
What types of utilities service the Site?Circle all that apply.
Gas Electric Propane Other
AA/EOE
Braun Intertec Corporation
11001 Hampshire Avenue S
Minneapolis, MN 55438
Phone: 952.995.2000
Fax: 952.995.2020
Web: braunintertec.com
ASTM Practice E 1527-13 User Questionnaire
Site: The Grandview
Eden Avenue at Acadia Avenue
Edina, Minnesota
Name: Date:
Company:
In order to qualify for one of the Landowner Liability Protections (LLPs) offered by the Small Business
Liability Relief and Brownfields Revitalization Act of 2002 (the “Brownfields Amendment”, the User must
conduct the following inquiries. The User should provide the following information to the environmental
professional. Failure to conduct these inquiries could result in a determination that “all appropriate
inquiries” is not complete.
(1) Environmental cleanup liens that are filed or recorded against the property.
The types of title reports that may disclose environmental liens include Preliminary Title Reports,
Title Commitments, Condition of Title, and Title Abstracts. Chain-of-title reports will not normally
disclose environmental liens. Did a search of recorded land title records (or judicial records where
appropriate) identify any environmental cleanup liens filed or recorded against the property
under federal, tribal, state or local law?
(2) Activity and use limitations (AULs) that are in place on the property or that have been filed or
recorded against the property.
The types of title reports that may disclose AULs include Preliminary Title Reports, Title
Commitments, Condition of Title, and Title Abstracts. Chain-of-title reports will not normally
disclose AULs. Did a search of recorded land title records (or judicial records where appropriate)
identify any AULs, such as engineering controls, land use restrictions, or institutional controls that
are in place at the property and/or have been filed or recorded against the property under
federal, tribal, state or local law?
(3) Specialized knowledge or experience of the person seeking to qualify for the LLP.
Do you have any specialized knowledge or experience related to the property or nearby
properties? For example, are you involved in the same line of business as the current or former
occupants of the property or an adjoining property so that you would have specialized knowledge
of the chemicals and processes used by this type of business?
(4) Relationship of the purchase price to the fair market value of the property if it were not
contaminated.
Does the purchase price being paid for this property reasonably reflect the fair market value of
the property? If you conclude that there is a difference, have you considered whether the lower
purchase price is because contamination is known or believed to be present at the property?
(5) Commonly known or reasonably ascertainable information about the property.
Are you aware of commonly known or reasonably ascertainable information about the property
that would help the environmental professional to identify conditions indicative of releases or
threatened releases? For example,
(a) Do you know the past uses of the property? If so, please explain.
(b) Do you know of specific chemicals that are present or once were present at the property?
If so, please explain.
(c) Do you know of spills or other chemical releases that have taken place at the property?
If so, please explain.
(d) Do you know of any environmental cleanups that have taken place at the property?
If so, please explain.
(6) The degree of obviousness of the presence or likely presence of contamination at the property,
and the ability to detect the contamination by appropriate investigation.
Based on your knowledge and experience related to the property, are there any obvious
indicators that point to the presence or likely presence of contamination at the property? If so,
please explain.
General Conditions
GC Page 1 of 2
Section 1: Agreement
1.1 Our agreement with you consists of these
General Conditions and the accompanying written
proposal or authorization (“Agreement”). This
Agreement is the entire agreement between you
and us. It supersedes prior agreements. It may be
modified only in a writing signed by us, making
specific reference to the provision modified.
1.2 The words “you,” “we,” “us,” and “our”
include officers, employees, and subcontractors.
1.3 In the event you use a purchase order or
other documentation to authorize our scope of
work (“Services”), any conflicting or additional
terms are not part of this Agreement. Directing us
to start work prior to execution of this Agreement
constitutes your acceptance. If, however, mutually
acceptable terms cannot be established, we have
the right to terminate this Agreement without
liability to you or others, and you will compensate
us for fees earned and expenses incurred up to the
time of termination.
Section 2: Our Responsibilities
2.1 We will provide Services specifically
described in this Agreement. You agree that we
are not responsible for services that are not
expressly included in this Agreement. Unless
otherwise agreed in writing, our findings, opinions,
and recommendations will be provided to you in
writing. You agree not to rely on oral findings,
opinions, or recommendations without our
written approval.
2.2 In performing our professional services, we
will use that degree of care and skill ordinarily
exercised under similar circumstances by
reputable members of our profession practicing in
the same locality. If you direct us to deviate from
our recommended procedures, you agree to hold
us harmless from claims, damages, and expenses
arising out of your direction. If during the one year
period following completion of Services it is
determined that the above standards have not
been met and you have promptly notified us in
writing of such failure, we will perform, at our
cost, such corrective services as may be necessary,
within the original scope in this Agreement, to
remedy such deficiency. Remedies set forth in this
section constitute your sole and exclusive recourse
with respect to the performance or quality of
Services.
2.3 We will reference our field observations and
sampling to available reference points, but we will
not survey, set, or check the accuracy of those
points unless we accept that duty in writing.
Locations of field observations or sampling
described in our report or shown on our sketches
are based on information provided by others or
estimates made by our personnel. You agree that
such dimensions, depths, or elevations are
approximations unless specifically stated
otherwise in the report. You accept the inherent
risk that samples or observations may not be
representative of things not sampled or seen and
further that site conditions may vary over distance
or change over time.
2.4 Our duties do not include supervising or
directing your representatives or contractors or
commenting on, overseeing, or providing the
means and methods of their services unless
expressly set forth in this Agreement. We will not
be responsible for the failure of your contractors,
and the providing of Services will not relieve
others of their responsibilities to you or to others.
2.5 We will provide a health and safety program
for our employees, but we will not be responsible
for contractor, owner, project, or site health or
safety.
2.6 You will provide, at no cost to us,
appropriate site safety measures as to work areas
to be observed or inspected by us. Our employees
are authorized by you to refuse to work under
conditions that may be unsafe.
2.7 Unless a fixed fee is indicated, our price is an
estimate of our project costs and expenses based
on information available to us and our experience
and knowledge. Such estimates are an exercise of
our professional judgment and are not guaranteed
or warranted. Actual costs may vary. You should
allow a contingency in addition to estimated costs.
Section 3: Your Responsibilities
3.1 You will provide us with prior environmental,
geotechnical and other reports, specifications,
plans, and information to which you have access
about the site. You agree to provide us with all
plans, changes in plans, and new information as to
site conditions until we have completed Services.
3.2 You will provide access to the site. In the
performance of Services some site damage is
normal even when due care is exercised. We will
use reasonable care to minimize damage to the
site. We have not included the cost of restoration
of damage in the estimated charges.
3.3 You agree to provide us, in a timely manner,
with information that you have regarding buried
objects at the site. We will not be responsible for
locating buried objects at the site. You agree to
hold us harmless, defend, and indemnify us from
claims, damages, losses, penalties and expenses
(including attorney fees) involving buried objects
that were not properly marked or identified or of
which you had knowledge but did not timely call to
our attention or correctly show on the plans you or
others furnished to us.
3.4 You will notify us of any knowledge or
suspicion of the presence of hazardous or
dangerous materials present on any work site or in
a sample provided to us. You agree to provide us
with information in your possession or control
relating to such materials or samples. If we
observe or suspect the presence of contaminants
not anticipated in this Agreement, we may
terminate Services without liability to you or to
others, and you will compensate us for fees
earned and expenses incurred up to the time of
termination.
3.5 Neither this Agreement nor the providing of
Services will operate to make us an owner,
operator, generator, transporter, treater, storer,
or a disposal facility within the meaning of the
Resource Conservation Recovery Act, as amended,
or within the meaning of any other law governing
the handling, treatment, storage, or disposal of
hazardous substances. You agree to hold us
harmless, defend, and indemnify us from any
damages, claims, damages, penalties or losses
resulting from the storage, removal, hauling or
disposal of such substances.
3.6 Monitoring wells are your property, and you
are responsible for their permitting, maintenance,
and abandonment unless expressly set forth
otherwise in this Agreement.
3.7 You agree to make all disclosures required by
law. In the event you do not own the project site,
you acknowledge that it is your duty to inform the
owner of the discovery or release of contaminants
at the site. You agree to hold us harmless, defend,
and indemnify us from claims, damages, penalties,
or losses and expenses, including attorney fees,
related to failures to make disclosures, disclosures
made by us that are required by law, and from
claims related to the informing or failure to inform
the site owner of the discovery of contaminants.
Section 4: Reports and Records
4.1 Unless you request otherwise, we will
provide our report in an electronic format.
4.2 Our reports, notes, calculations, and other
documents and our computer software and data
are instruments of our service to you, and they
remain our property. We hereby grant you a
license to use the reports and related information
we provide only for the related project and for the
purposes disclosed to us. You may not transfer our
reports to others or use them for a purpose for
which they were not prepared without our written
approval. You agree to indemnify, defend, and
hold us harmless from claims, damages, losses,
and expenses, including attorney fees, arising out
of such a transfer or use.
4.3 If you do not pay for Services in full as
agreed, we may retain work not yet delivered to
you and you agree to return to us all of our work
that is in your possession or under your control.
4.4 Samples and field data remaining after tests
are conducted and field and laboratory equipment
that cannot be adequately cleansed of
contaminants are and continue to be your
property. They may be discarded or returned to
you, at our discretion, unless within 15 days of the
report date you give us written direction to store
or transfer the materials at your expense.
4.5 Electronic data, reports, photographs,
samples, and other materials provided by you or
others may be discarded or returned to you, at our
discretion, unless within 15 days of the report date
you give us written direction to store or transfer
the materials at your expense.
GC Revised 1/1/2018 Page 2 of 2
Section 5: Compensation
5.1 You will pay for Services as stated in this
Agreement. If such payment references our
Schedule of Charges, the invoicing will be based
upon the most current schedule. An estimated
amount is not a firm figure. You agree to pay all
sales taxes and other taxes based on your
payment of our compensation. Our performance is
subject to credit approval and payment of any
specified retainer.
5.2 You will notify us of billing disputes within 15
days. You will pay undisputed portions of invoices
upon receipt. You agree to pay interest on unpaid
balances beginning 30 days after invoice dates at
the rate of 1.5% per month, or at the maximum
rate allowed by law.
5.3 If you direct us to invoice a third party, we
may do so, but you agree to be responsible for our
compensation unless the third party is
creditworthy (in our sole opinion) and provides
written acceptance of all terms of this Agreement.
5.4 Your obligation to pay for Services under this
Agreement is not contingent on your ability to
obtain financing, governmental or regulatory
agency approval, permits, final adjudication of any
lawsuit, your successful completion of any project,
receipt of payment from a third party, or any
other event. No retainage will be withheld.
5.5 If you do not pay us in accordance with this
Agreement, you agree to reimburse all costs and
expenses for collection of the moneys invoiced,
including but not limited to attorney fees and staff
time.
5.6 You agree to compensate us in accordance
with our Schedule of Charges if we are asked or
required to respond to legal process arising out of
a proceeding related to the project and as to
which we are not a party.
5.7 If we are delayed by factors beyond our
control, or if project conditions or the scope or
amount of work changes, or if changed labor
conditions result in increased costs, decreased
efficiency, or delays, or if the standards or
methods change, we will give you timely notice,
the schedule will be extended for each day of
delay, and we will be compensated for costs and
expenses incurred in accordance with our
Schedule of Charges.
5.8 If you fail to pay us in accordance with this
Agreement, we may consider the default a total
breach of this Agreement and, at our option,
terminate our duties without liability to you or to
others, and you will compensate us for fees
earned and expenses incurred up to the time of
termination.
5.9 In consideration of our providing insurance
to cover claims made by you, you hereby waive
any right to offset fees otherwise due us.
Section 6: Disputes, Damage, and Risk Allocation
6.1 Each of us will exercise good faith efforts to
resolve disputes without litigation. Such efforts
will include, but not be limited to, a meeting(s)
attended by each party’s representative(s)
empowered to resolve the dispute. Before either
of us commences an action against the other,
disputes (except collections) will be submitted to
mediation.
6.2 Notwithstanding anything to the contrary in
this Agreement, neither party hereto shall be
responsible or held liable to the other for
punitive, indirect, incidental, or consequential
damages, or liability for loss of use, loss of
business opportunity, loss of profit or revenue,
loss of product or output, or business
interruption.
6.3 You and we agree that any action in relation
to an alleged breach of our standard of care or this
Agreement shall be commenced within one year
of the date of the breach or of the date of
substantial completion of Services, whichever is
earlier, without regard to the date the breach is
discovered. Any action not brought within that
one year time period shall be barred, without
regard to any other limitations period set forth by
law or statute. We will not be liable unless you
have notified us within 30 days of the date of such
breach and unless you have given us an
opportunity to investigate and to recommend
ways of mitigating damages. You agree not to
make a claim against us unless you have provided
us at least 30 days prior to the institution of any
legal proceeding against us with a written
certificate executed by an appropriately licensed
professional specifying and certifying each and
every act or omission that you contend constitutes
a violation of the standard of care governing our
professional services. Should you fail to meet the
conditions above, you agree to fully release us
from any liability for such allegation.
6.4 For you to obtain the benefit of a fee which
includes a reasonable allowance for risks, you
agree that our aggregate liability for all claims
will not exceed the fee paid for Services or
$50,000, whichever is greater. If you are
unwilling to accept this allocation of risk, we will
increase our aggregate liability to $100,000
provided that, within 10 days of the date of this
Agreement, you provide payment in an amount
that will increase our fees by 10%, but not less
than $500, to compensate us for the greater risk
undertaken. This increased fee is not the purchase
of insurance.
6.5 You agree to indemnify us from all liability
to others in excess of the risk allocation stated
herein and to insure this obligation. In addition,
all indemnities and limitations of liability set
forth in this Agreement apply however the same
may arise, whether in contract, tort, statute,
equity or other theory of law, including, but not
limited to, the breach of any legal duty or the
fault, negligence, or strict liability of either party.
6.6 This Agreement shall be governed,
construed, and enforced in accordance with the
laws of the state in which our servicing office is
located, without regard to its conflict of laws rules.
The laws of the state of our servicing office will
govern all disputes, and all claims shall be heard in
the state or federal courts for that state. Each of
us waives trial by jury.
6.7 No officer or employee acting within the
scope of employment shall have individual liability
for his or her acts or omissions, and you agree not
to make a claim against individual officers or
employees.
Section 7: General Indemnification
7.1 We will indemnify and hold you harmless
from and against demands, damages, and
expenses of others to the comparative extent they
are caused by our negligent acts or omissions or
those negligent acts or omissions of persons for
whom we are legally responsible. You will
indemnify and hold us harmless from and against
demands, damages, and expenses of others to the
comparative extent they are caused by your
negligent acts or omissions or those negligent acts
or omissions of persons for whom you are legally
responsible.
7.2 To the extent it may be necessary to
indemnify either of us under Section 7.1, you and
we expressly waive, in favor of the other only, any
immunity or exemption from liability that exists
under any worker compensation law.
7.3 You agree to indemnify us against losses and
costs arising out of claims of patent or copyright
infringement as to any process or system that is
specified or selected by you or by others on your
behalf.
Section 8: Miscellaneous Provisions
8.1 We will provide a certificate of insurance to
you upon request. Any claim as an Additional
Insured shall be limited to losses caused by our
negligence.
8.2 You and we, for ourselves and our insurers,
waive all claims and rights of subrogation for
losses arising out of causes of loss covered by our
respective insurance policies.
8.3 Neither of us will assign or transfer any
interest, any claim, any cause of action, or any
right against the other. Neither of us will assign or
otherwise transfer or encumber any proceeds or
expected proceeds or compensation from the
project or project claims to any third person,
whether directly or as collateral or otherwise.
8.4 This Agreement may be terminated early
only in writing. You will compensate us for fees
earned for performance completed and expenses
incurred up to the time of termination.
8.5 If any provision of this Agreement is held
invalid or unenforceable, then such provision will
be modified to reflect the parties' intention. All
remaining provisions of this Agreement shall
remain in full force and effect.
8.6 No waiver of any right or privilege of either
party will occur upon such party's failure to insist
on performance of any term, condition, or
instruction, or failure to exercise any right or
privilege or its waiver of any breach.
March 15, 2018
Board of the Edina Housing and Redevelopment Authority
Bill Neuendorf, Economic Development Manager
Second Amendment to Private Development for Contract: 4416 Valley View Road
Information / Background:
In November 2017, the HRA entered into a contract to sell two properties for redevelopment purposes at
4416 Valley View Road and 6120 Kellogg Avenue. This contract was amended in February 2018.
Two of the key conditions of the contract require the developer to assembly all properties at the same time
and secure final zoning approvals. The developer has made significant progress on the other real estate
transactions and has submitted plans for final rezoning. The transaction will be scheduled as soon as the final
conditions are met.
Additional revisions to the contract have been requested to recognize the time required to secure final
rezoning and to satisfy financing requirements of the lender. The City Attorney has prepared the attached
Amendment to address these concerns and to allow for the transaction to occur as soon as all conditions
are satisfied.
Staff recommends that the Second Amendment be approved.
1
196809v1
(reserved for recording information)
SECOND AMENDMENT
TO
CONTRACT FOR PRIVATE DEVELOPMENT
THIS AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT
(“AMENDMENT”), made on or as of the _____day of _____________________ , 2018, by
and between the HOUSING AND REDEVELOPMENT AUTHORITY, a public body
corporate and politic under the laws of the State of Minnesota (the "HRA") and EDINA FLATS
L.L.C., a Minnesota limited liability company (“Developer”).
WITNESSETH:
WHEREAS, the HRA and Developer entered into a Contract for Private Development
dated November 8, 2017 (“Contract”) concerning the real property located in the City of Edina
and legally described in Exhibit A attached hereto and incorporated herein; and
WHEREAS, the parties desire to amend the Contract to provide flexibility to the units
required for the Minimum Improvements;
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
1. AMENDMENT TO THIRD WHEREAS CLAUSE. The third Whereas clause
of the Contract is amended to read as follows:
WHEREAS, there has been a proposal that the HRA approve the sale of two parcels of
real property described as Parcel 1 and Parcel 2 (individually referred to herein as “Parcel” and
2
196809v1
collectively, as “Parcels”) in Exhibit “A” attached hereto (the “Property”) to the Developer for
development of the following in the City of Edina:
(i) a 3 story condominium building with at least 13,800 square feet of livable space
and a maximum of six units, together with 4,600 square feet of underground
parking, appropriate landscaping and a 600 square foot plaza; and
(ii) a 2 story condominium building with at least 4,870 square feet of livable space
and a maximum of three units, together with appropriate landscaping.
(the "Project"), as depicted in Exhibit “B”; and
2. AMENDMENT TO ARTICLE I. The definition of Minimum Improvements in
Article I of the Contract is amended to read as follows:
“Minimum Improvements” means at least the following improvements:
(i) a 3 story condominium building with at least 13,800 square feet of livable space
and a maximum of six units, together with 4,600 square feet of underground
parking, appropriate landscaping and a 600 square foot plaza; and
(ii) a 2 story condominium building with at least 4,870 square feet of livable space
and a maximum of three units, together with appropriate landscaping.
3. EFFECT OF AGREEMENT. The Contract shall remain in full force and effect
except as specifically amended herein.
IN WITNESS WHEREOF, the HRA and Developer have caused this Amendment to be
duly executed on or as of the date first above written.
[Remainder of page intentionally left blank.]
[Signature pages to follow.]
3
196809v1
EDINA HOUSING AND REDEVELOPMENT
AUTHORITY
By: ____________________________________
James B. Hovland
Its President
By: ____________________________________
Robert J. Stewart
Its Secretary
Attested By:_______________________
Scott Neal
Its Executive Director
STATE OF MINNESOTA )
)ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _____ day of
________________________, 2018, by James B. Hovland and Robert J. Stewart, respectively,
the President and Secretary, of the Edina Housing and Redevelopment Authority, a public body
corporate and politic under the laws of the State of Minnesota, on behalf of the public body
corporate and politic.
______________________________________
Notary Public
4
196809v1
EDINA FLATS L.L.C.
_________________________________
By: Patrick McGlynn
Chief Executive Officer and President
STATE OF MINNESOTA )
)ss.
COUNTY OF ___________ )
The foregoing instrument was acknowledged before me this _____ day of
________________________, 2018, by Patrick McGlynn, the Chief Executive Officer and
President of of Edina Flats L.L.C., a Minnesota limited liability company, on its behalf.
______________________________________
Notary Public
DRAFTED BY:
Campbell Knutson
Professional Association
Grand Oak Office Center I
860 Blue Gentian Road, Suite 290
Eagan, Minnesota 55121
Telephone: (651) 452-5000
EXHIBIT “A”
5
196809v1
LEGAL DESCRIPTION OF THE PROPERTY
Parcel 1
Lots 8 and 9, Block 21, Fairfax, Hennepin County, Minnesota, according to the recorded
plat thereof.
Parcel 2
Lot 6, Block 21, Fairfax, Hennepin County, Minnesota, according to the recorded plat
thereof.
Exhibit A
[Remainder of this page intentionally left blank]
[Signature Page to Subordination Agreement]
[Signature Page to Subordination Agreement]
[Signature Page to Subordination Agreement]
March 15, 2018
Board of the Edina Housing and Redevelopment Authority
Scott Neal, Executive Director
Edina Affordable Housing Manager Proposal
Information / Background:
In the City’s 2017 biennial Quality of Life Survey, residents were asked to write in their own words what they
felt was the most serious issue facing Edina. 31% of the comments were related to housing concerns,
including tear downs, overdevelopment, affordability, etc. This was the highest ranked serious concern
offered by Edina residents in the 2017 survey. The next highest ranked serious concern was traffic and
infrastructure at 17%.
We don’t need a community survey to tell us that the lack of affordable housing in Edina is a threat to the
community’s future quality of life. We already know that. I believe it’s time that we - the City of Edina and
the Edina Housing Foundation – decide to make Edina’s most serious issue a more serious organizational
priority.
The Foundation and the City have considerable human and fiscal resources that, if properly coordinated and
managed, could make considerable progress to solving this issue in Edina. Both the City and the Foundation
can look back in time and find past examples of affordable housing success. But, as long as affordable
housing is not at the top of someone’s day-to-day prioritized work plan, we will not succeed in making
sufficient progress in resolving it today.
During the past five years, the City has experienced success in several specified policy areas by pursuing a
strategy of identifying a revenue stream from the policy area in question and then using that dedicated
revenue stream to employ a dedicated City staff person for whom the specified policy area is their highest, if
not only, priority. This strategy has led to success in specific policy areas of economic development,
pedestrian and cyclist transportation, conservation and sustainability planning and residential
redevelopment management. I believe we should employ this same strategy for affordable housing.
There is an existing agreement between the City and the Foundation that has been in place for over 30 years
that describes the terms under which the City provides services to the Foundation. The agreement has
enabled the City and the Foundation to maintain a close, positive working relationship over those thirty
years; provide significant housing benefits to Edina residents; and, has allowed the Foundation to
accomplish its mission without the administrative burdens and costs of having its own employees. I propose
the City and the Foundation reaffirm their mutual dedication to the mission of resolving the housing
STAFF REPORT Page 2
affordability issue is Edina by doubling down on the strengths of its past relationship by agreeing to the
following:
1. The City will hire a new fulltime employee to be completely devoted to affordable housing issues in
Edina. The employee will be a division manager level employee within the City’s organizational
hierarchy and report directly to the Community Development Director.
2. The new employee will serve as lead City staff member for the Foundation and will coordinate all City
support services to and for the Foundation, including administrative and fiscal management services.
3. The Foundation will provide fiscal support to the City for this new position that will phase out as the
City has time to establish new revenue stream(s) to support the new position into the future.
4. The City will designate the Foundation to act as the official policy advisory body to the City
Council/Housing & Redevelopment Authority for all housing related issues in the City. The
Council/HRA will meet jointly with the Foundation on a quarterly basis to facilitate the relationship
and mission.
5. The Foundation and the City will agree to jointly create, adopt and implement a community housing
strategy.
I envision the essential duties of the new employee position as follows:
• Serve as the primary housing policy advisor to the City Council/HRA and Housing Foundation
• Facilitate all City staff services to the Housing Foundation
• Represent the City to federal, state, regional and county government on housing related issues
• Represent the City to builders, developers, lenders, NGOs and other housing sector organizations
• Monitor state and federal affordable housing legislation
• Manage the City’s affordable housing administrative, contractual and compliance obligations and
responsibilities
• Manage the City’s Affordable Housing Fund, Southdale II TIF District and future Affordable Housing
TIF Districts
I’m thinking the minimum desired qualifications:
• Bachelor’s degree or higher; ability read, write, talk, etc.
• Experience with the creation of affordable housing
• Public engagement and speaking experience
• Previous experience with LIHTC, TIF and other affordable housing finance tools
• Legislative or policy development experience
• Demonstrated knowledge and understanding of the housing sector
The financial pro forma of this proposal looks like this:
Proposed Budget
• Personnel Costs $119,400
• Operating costs $20,000
• Capital Setup $ 8,000
• Other $ 2,000
TOTAL $149,400
STAFF REPORT Page 3
*For the purposes of this proposal, I applied an annual cost inflator of 4% to each year going forward.
To create this new position and to make meaningful, persistent progress toward our affordable housing
goals, the City will need the financial support of the Housing Foundation. The City’s budget position for
2018 and 2019 does not allow for the City to unilaterally fund this position. However, the City could phase
in its fiscal support over a five-year time frame. If we, City and HF, want to get started on this new
affordable housing initiative right now, I propose the following cost sharing formula:
Year Budget Cost Share HF City
2018 149,400 90/10 134,000 14,940
2019 155,376 80/20 124,300 31,075
2020 161,591 50/50 80,795 80,795
2021 168,054 50/50 84,027 84,027
2022 174,776 20/80 34,995 139,920
2023> 181,767 10/90 18,176 163,590
476,693 514,347
The proposed cost share over five-year introductory period is 48% HF and 52% City. The cost sharing
proposal recognizes that the City needs HF’s help in 2018 and 2019 because our budget is set for those two
years, but reflects the fact that the City can plan to absorb a larger share of the costs in 2020, 2021 and
beyond.
3/15/2018
1
The CITYof
EDINA
Affordable Housing Manager Proposal
March 15, 2018
The CITYof
EDINAAffordable Housing:
What Is The Problem?
•Lack of Supply
•Vulnerability of NOAH
•Community Defined Problem
•Community Asking for Solution
www.EdinaMN.gov 2
The CITYof
EDINAAffordable Housing:
Defining The Problem
•High Land Costs
•High MSFH Values
•Increasing Rents
•Profit Potential
www.EdinaMN.gov 3
The CITYof
EDINAAffordable Housing:
Identifying Our Assets
•Edina Housing Foundation
•HRA
•Community Support
•Resources
www.EdinaMN.gov 4
3/15/2018
2
The CITYof
EDINAOur Problem Is Alignment
www.EdinaMN.gov 5
The CITYof
EDINAAffordable Housing:
Aligning Our Resources
•New Fulltime Employee
•HRA-HF Partnership
•Activate Resources
•Activate Community
www.EdinaMN.gov 6
The CITYof
EDINABest Predictor of Future Success...
www.EdinaMN.gov 7
The CITYof
EDINANext Steps
•HRA Endorsement
•Amendment Four
•Formal Approval by HF and City Council
•Organizational Ramp-Up
•Hire
www.EdinaMN.gov 8
3/15/2018
3
The CITYof
EDINA
Discussion
www.EdinaMN.gov 9
March 15, 2018
Board of the Edina Housing and Redevelopment Authority
Scott Neal, Executive Director
Edina Affordable Housing Policy Amendment Proposal
Information / Background:
The City’s affordable housing policy includes a provision that allows housing developers to pay a cash
payment to the City in lieu of providing affordable housing units, or a “Buy-In”. At the moment, the Buy-In
amount was intentionally left vague in the policy to allow the City and housing developers to be more
creative in finding solutions to the City’s affordable housing needs.
City staff who are directly involved in discussions around the issue of the Buy-In have reached a consensus
that leaving the amount of the Buy-In undefined in the affordable housing policy has not led to more
creative solutions. Rather, it leads to vague and unproductive discussions and, ultimately, to the decision
being left to the political sphere on a case by case basis.
City staff propose the City Council/HRA amend the Affordable Housing Policy by requiring the Council to
establish an official Buy-In each year at the Council’s second meeting in January. The Buy-In would be based
on advice from Housing Foundation, staff, and market conditions.
As a start, staff recommend that Council establish an initial Buy-In of $100,000 at the Council’s March 15,
2018 meeting. Further, staff also recommends the following be added to the policy:
1. A housing developer’s affordable housing obligation (AHO) remains at a minimum of 10% of the
total units proposed for developments exceeding 20 units. The Total Buy-In (TBI) is the product of
the developer’s affordable housing obligation multiplied by the Buy-In.
2. The TBI is due in cash or certified funds in full to the City at the time of the issuance of the building
permit. A building permit will not be issued unless the TBI is paid in full.
3. The City Council may allow housing developer to pre-pay a TBI to satisfy a future AHO, on a case-by-
case basis.
March 15, 2018
Board of the Edina Housing and Redevelopment Authority
Bill Neuendorf, Economic Development Manager
Guidelines for Investing in Affordable Housing
Information / Background:
The Housing and Redevelopment Authority (HRA) has a variety of financial resources to advance the goal of
delivering more affordably-priced housing in Edina. These resources are derived from three primary sources:
• Southdale 2 TIF District – approximately $4.1 million to invest prior to December 2019
• New TIF Districts – established on an as-needed basis to achieve community goals
• Contributions from developers held in the Affordable Housing Fund, currently $1.2 million
The HRA has discretion in how and where these monies are directed. Please note that TIF monies can only
be invested within the boundaries of the Southeast Edina Redevelopment Project Area. This includes the
entire city except for the far southwestern portion as depicted in the attached map.
The following guidelines are proposed as the HRA determines how these monies are invested.
1) Investments should be made in the more intensive zoning districts (commercial, mixed-use, etc) and
not in zones guided for single-family or two-family housing:
a. Multi-family housing is preferred to create or retain more units
b. Preferred districts include: Greater Southdale, Grandview, 50th & France, 44th & France
Pentagon Park and 70th & Cahill.
c. Over time, investments should be made to projects located in each of the city’s four
quadrants; concentration of affordably-priced units should be avoided.
d. Preferred sites should include convenient access to mass transit and employment
opportunities.
2) Investment should support more than one project, preferably 2 or 3 different projects prior to
December 2019.
STAFF REPORT Page 2
3) The term of affordability should be as long as possible. 15-years is the minimum term but 40 years
to permanent is preferred.
4) Affordable units should be delivered at a variety of price points and in a variety of sizes - from studio
to 3-bedrooms. The target population should have no restrictions – from singles to families to
seniors.
5) HRA/TIF monies should be used to leverage support from non-HRA resources including: private
philanthropy, Edina Housing Foundation, Hennepin County, Metropolitan Council, State of
Minnesota and other resources.
6) Investments using incremental taxes generated from within new TIF Districts should take the form
of pay-as-you go notes in accordance with Edina’s TIF policy.
7) Investments using pooled funds from TIF Districts should take the form of loans, if possible so that
the monies can be replenished to support additional projects in the future.
8) Investments could take many forms including:
a. acquisition of land
b. acquisition of naturally-occurring multi-family affordable housing
c. direct financial support of developments that have at least 10 percent of the units affordably-
priced (Affordable Housing Fund only)
d. direct financial support of developments that have at least 20 percent of the units affordably-
priced (TIF monies only)
9) Investment decisions should occur on a case-by-case basis with the goal of maximizing the number
and type of affordably-priced units created or retained.
March 15, 2018
Board of the Edina Housing and Redevelopment Authority
Bill Neuendorf, Economic Development Manager
Amendment to Preliminary Development Agreement: 5146 Eden Avenue
Information / Background:
In December 2017, the Edina Housing and Redevelopment Authority (HRA) entered into a Preliminary
Development Agreement (PDA) with Frauenshuh Inc. to explore a mixed-use redevelopment of the City’s
former Public Works site located at 5146 Eden Avenue. Frauenshuh was engaged after the HRA conducted
a competitive selection process in 2014.
Based on a review of the past community input, the preferred elements on the 3.3 acre site include a
combination of indoor and outdoor public facilities such as a new Art Center and Marketplace, market-rate
housing, affordably-priced housing and a shared parking facility with the potential to serve as a park-and-ride.
The scope of the PDA is rooted in the community input collected over the past ten years. While different
stakeholders have different preferences for the vacant site, the PDA explores a combination of public and
private uses that work synergistically together. A residential tower with a small footprint is included so that
more of the site can be devoted to public uses.
The developer and City staff determined that additional time is needed to fully explore the financial
feasibility of the mixed-use concept that includes the preferred public and private elements.
Some of the initial assumptions for site development have resulted in a gap in the financial pro forma that
cannot be bridged without changes. The concept needs to be re-scoped so that the public and private
portions of the project are feasible. The developer proposes to further study a slightly revised concept that
includes:
• Redesign of underground parking that serves the residential tower
• Shared use of the public ramp so that some stalls are available to tower residents in the nighttime
and available to general public in the daytime
• Re-sizing of the civic building to focus on the Art Center only
STAFF REPORT Page 2
• Re-sizing of the public ramp to reduce costs
• Elimination of commuter parking due to lack of Metro Transit funding
• Deferred construction of vehicle bridge over the train tracks with a single pedestrian bridge
included as part of this project
• City ownership of civic building (e.g. Art Center) instead of lease to purchase
• Developer ownership of residential tower and artist lofts
• Joint ownership of public ramp and rooftop green space using a condominium-like arrangement
• Land entitlement as a single development with one architect and one contractor
• Market rate tower stands on its own financially with land value and incremental taxes used to
reduce the debt associated with the civic building, public parking structure and/or environmental
remediation
The City Attorney has prepared an Amendment to the Preliminary Development Agreement to address
these recommendations and to clarify the terms of reimbursement in case the HRA chooses not to move
forward with a full Development Agreement.
Based on the revised approach, staff recommends the following actions:
1) Extend the time limit for the HRA to make a “go” or “no-go” decision from February 28 to April
30:
a. If the HRA does not proceed with the project by April 30, the HRA will reimburse
Frauenshuh for approximately 50 percent of the predevelopment costs.
b. If the HRA gives the go-ahead by April 30, a full Development Agreement will be prepared
and the predevelopment costs will be allocated to the respective public and private
elements. There are several tasks (identified in Exhibit B Phase 2) that will require
clarification and scheduling.
c. If a full Development Agreement is not approved post April 30, the HRA will reimburse
Frauenshuh for 100 percent of the predevelopment costs.
2) HRA to apply for modifications to the City’s Comprehensive Plan to allow high rise tower
construction on 1-acre of the site:
a. This modification process should begin immediately so that the Metropolitan Council’s June
30,,2018 deadline can be satisfied.
b. A formal rezoning and site plan approval would be pursued jointly with the developer later
in the year.
# # #
196626v2 1
AMENDMENT TO
PRELIMINARY DEVELOPMENT AGREEMENT
THIS AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT
(“Amendment”) is dated as of _________________, 2018, by and between Edina Housing and
Redevelopment Authority, a public body corporate and politic under the laws of the State of
Minnesota (the “Authority”) and Frauenshuh, Inc., a Minnesota corporation (the “Developer”).
RECITALS
WHEREAS, the Authority and Developer entered into a Preliminary Development
Agreement dated December 11, 2017 (“Agreement”), for the preliminary work and review of
development issues in advance of development of the Property and potential sale of portions of
the Property identified in the Agreement;
WHEREAS, Developer has requested an amendment of certain time-frames identified in
the Agreement;
WHEREAS, the Authority is agreeable to the amendment to time-frames as provided in
this Amendment, provided certain payment terms are also modified;
NOW, THEREFORE, in consideration of the covenants and undertakings contained
herein and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, Authority and Developer agree as follows:
1. ACKNOWLEDGMENT – PHASE I; SKETCH PLAN REVIEW.
Developer and Authority acknowledge and agree that Developer has complied with the timelines
and deliverables for Phase I and that Phase I is complete.
2. AMENDMENT TO PARAGRAPH 1(e) OF THE AGREEMENT.
Paragraph 1, subsection (e) of the Agreement is amended to read as follows:
(e) Developer and Authority shall determine whether the Required Uses and
Preferred Uses can be accommodated on the Property in a manner that is consistent with
the Guiding Principles by April 30, 2018, or such later date as agreed to by the parties. If
the Required Uses cannot be accommodated as provided herein, no further work will be
done pursuant to this Agreement after the date of such determination and this Agreement
shall terminate, unless otherwise approved by the parties. The Authority will reimburse
Developer for only the actual costs incurred by Developer allocated to the Authority
reimbursement as identified in Exhibit C.
3. AMENDMENT TO PARAGRAPH 1(h) OF THE AGREEMENT.
Paragraph 1, subsection (h) of the Agreement is amended to read as follows:
196626v2 2
4. AMENDMENT TO PARAGRAPH I OF THE AGREEMENT. Paragraph I
is amended to add a new subsection (k) to read as follows:
(k) On or before April 30, 2018, or such other date agreed to by the parties pursuant
to Paragraph I(e), the Parties shall amend Exhibit B of this Agreement to provide
appropriate dates for completion of the deliverables in Phase II.
5. AMENDMENT TO EXHIBIT B OF THE AGREEMENT. Exhibit B of the
Agreement as amended is attached hereto.
6. AMENDMENT TO EXHIBIT C OF THE AGREEMENT. Exhibit C of the
Agreement as amended is attached hereto.
7. FULL FORCE AND EFFECT. Except as provided in this Amendment, all
terms and provisions of the Agreement shall remain in full force and effect.
8. AMENDMENT TO PARAGRAPH I OF THE AGREEMENT. Paragraph I
is amended to add a new subsection (l) to read as follows:
(l) HRA will use good faith efforts to sponsor an amendment to the comprehensive
plan regarding height limits on the site by the June 30, 2018 deadline.
IN WITNESS WHEREOF, the City and Authority have caused this Agreement to be duly
executed in their name and behalf and their seal to be duly affixed hereto and the Developer has
caused this Agreement to be duly executed as of the date and year first above written.
FRAUENSHUH, INC.:
By: ___________________________
Its: ___________________________
EDINA HOUSING AND
REDEVELOPMENT AUTHORITY:
By: ___________________________
James B. Hovland, Its Chair
And By:___________________________
Robert J. Stewart, Its Secretary
196626v2 3
Exhibit B
Grandview- Former Public Works Site
Preliminary Development Agreement
2017/2018 Schedule & Process
Edina Housing and Redevelopment Authority and Frauenshuh
Phase 1 – Sketch Plan
December 11 (week of): Organizational Meeting/Workshop with City staff and Developer’s
team, including Developer’s architectural, civil and landscape consultants.
December 11th or 18th (week of): Workshop with City Staff and Developer’s team.
January 8th (week of): Developer presentation of first draft of Sketch Plan to Joint workshop
with Parks & Rec Board and Arts & Culture Commission representatives.
January 10th : Developer submission of Sketch Plan Application.
Developer submission of preliminary market study concerning private development and the
Preferred Use
January 24th: Planning Commission; Sketch Plan review.
January 24th (week of): Developer schedule and participate in neighborhood meeting concerning
draft Sketch Plan.
February 7th: City Council; Sketch Plan review.
Phase II – Contract for Private Redevelopment and Necessary Land Use Approval
DATE TBD: Developer completion of traffic study
DATE TBD: Developer application for Tax Increment Financing, Developer Submission of
Development Payment Agreement; Developer application for preliminary zoning approval and any
necessary comprehensive plan amendments required for development.
DATE TBD: Developer, Authority and City negotiation of Contract for Private Redevelopment
and Tax Increment Financing Agreement.
Date TBD: City to develop a business plan/strategy for the new finished building for the Edina
Civic Center
196626v2 4
DATE TBD: Planning Commission review of preliminary zoning and comprehensive plan
application.
DATE TBD: Contract for Private Redevelopment and Tax Increment Financing Agreement
submitted to the Authority and City Council together with final approval of any Comprehensive
Plan Approvals necessary for development and preliminary zoning approval.
Project Cost*
Frauenshuh
Portion Expense
During PDA
City Portion
Expense During
PDA
City to Reimburse
- PDA
Termination or
Expiration
Sketch Plan - Architect 39,500$
Res. Tower 13,167$
District Parking/Community Space 13,167$ 13,167$
Art Center 13,167$ 13,167$
Sketch Plan - Civil/Landscape Consultants 17,500$
Res. Tower 5,833$
District Parking/Community Space 5,833$ 5,833$
Art Center 5,833$ 5,833$
Preliminary Soil & Environmental 30,000$ 30,000$
High level traffic 5,000$ 5,000$ 2,500$
Preferred Use Market Study 5,000$ 5,000$
Preliminary Res. Market Study 5,000$ 5,000$ 2,500$
TIF Analysis 2,500$ 2,500$
Legal - TIF 5,000$ 5,000$
Legal - Real Estate, General 7,500$ 7,500$
Authority - PDA 30,000$ 30,000$
Frauenshuh - PDA Development 60,000$ 60,000$ 30,000$
Legal 5,000$ 5,000$ 2,500$
212,000$ 139,500$ 72,500$ 75,500$
If the PDA is terminated by April 30th or at such a later date as agreed to by both parties, the Authority’s reimbursement
obligation is detailed in the above column “City to Reimburse PDA Termination or Expiration”. If the PDA is terminated
after April 30th or at such a later date as agreed to by both parties, the Authority’s reimbursement obligation is detailed in
the above column “Frauenshuh Portion Expense During PDA”.
Cost Allocation
*If the Project proceeds with Frauenshuh as master developer, the costs above will be incorporated as project costs
allocated to each phase on a prorated basis. Adjustments to be made at closing.
Pre-Development Budget
Grandview
Project Activity
Civil/LA
Architectural
Site Evaluation
Financial and Legal
Preliminary Development Agreement
3/10/2018
Dear City Council/HRA Board,
Last month, I wrote to you about the attitudes and reflexive beliefs that can get in the way of
accurately seeing, hearing and understanding residents’ perspectives. As with my January email
to you, I asked for a response. Thank you to Council member Stewart for his reply.
In a city of around 52,000 residents, it seems safe to say that most have little reason to engage
with their City government. Some who do engage may not have a clear idea how the City works.
There are common misconceptions, such as the City and school district are one; the City collects
sales tax at the liquor stores; the mayor has significantly more authority than other Council
members; and the City Council must abide by the comp plan, City policies, and City code.
The last misconception can be especially vexing for residents who rely on officials to adhere to
City plans, policies and ordinances without what can look like convenient interpretation or
complete dismissal.
The rules applying to who must follow City code can be uneven. On the one hand, if a resident
fails to follow City code—for example, parks for more than six hours on a City street—they may
be penalized. But if the Council fails to follow City code in some aspect of its decision making, or
fails to direct enforcement of City code, the City Council applies no penalty to its conduct.
“The Council doesn’t follow the comp plan.”
“The Council doesn’t follow City code.”
“The City manager doesn’t enforce City code.”
These and similar statements have been expressed many times over the years, especially related
to development and the impacts of residential construction. I have seen residents band together
to try to persuade the Council to follow the comp plan and City code. I have seen residents get
angry, harbor resentments, give up. In a handful of cases, I have seen them appeal to state
agencies or the courts. The unfortunate truth is that the City Council largely can do as it chooses
to, regardless of the plans and policies it has adopted.
That is a hard thing for residents who trust in the authority of these documents to believe, and
even harder to accept. Often, they entreat:
“The comp plan says....”
“The zoning code says….”
“The policy says….”
“Yes, but,” the Council can seem to say back, “We have flexibility and discretion in decision
making, and while the words and illustrations in these documents do bear on our decisions, we
can exercise flexibility and discretion as we think best.”
If flexibility and discretion guide the applicability of plans, policies, and ordinances (and not the
other way around), then what guides the applicability of flexibility and discretion?
In my last email, I asked whether the Council attends to its own culture and operations and
suggested that some self-reflection and sharpening of Council policies would be helpful.
What does it mean to attend to Council culture and operations? Consider:
• Is there an ethics policy and a culture of adherence?
• Is there a City Council policy manual? Is it complete, organized, and current? Is there a
schedule for policy review and updates?
• Do City Council/HRA board members receive ongoing/repeat training?
• Does the City Council seek review of its own performance? Does it set goals for
improvement that Council members and the Council as a whole are accountable to?
• Does the Council have a mission statement, expressing the values that it embodies?
Flexibility and discretion need guiding stars: strong character, preparedness, and deference to
common standards (i.e., adopted plans, policies, written procedures, ordinances).
Perhaps a village council could put discretion and flexibility at the apex of its decision making,
but Edina is a city of around 52,000 residents whose diverse interests and perspectives demand
that our Council function with greater objectivity, reliability and accountability.
Please let me know your thoughts. Thanks for reading and, as always, my sincere thank you for
your service to our community.
Jennifer Janovy
Edina